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Health management

Fraport considers its commitment to the health of its employees to be an important assign- ment from which both parties benefit. Healthy employees contribute to a performance-oriented corporate culture. We are therefore continuing to expand our prizewinning health management system. In 2004, the AOK health insurance fund once again gave Fraport employees insured with it a premium bonus of 1.2%. The employees and the company shared the total saving of € 2.1 million equally.

Alongside this, we are concentrating primarily on measures to improve occupational safety: the number of accidents at work was reduced from nine to seven accidents per one million traffic units at the Frankfurt location, while working time losses due to accidents there was cut from 121 to 99 days.

A bright future thanks to innovations

Fraport depends on the creativity of its employees: their ideas help to improve processes and cut costs. Many of the products developed from new ideas have been filed as utility model or patent applications. The position established on the staff of the labor relations director is responsible for investigating suggestions submitted for improvements, for identifying new projects and for co- operating closely with universities and non-university research institutes.

Compensation systems

Fraport AG implements the civil service collective agreements as a member of the Hessian associ- ation of municipal employers; they include the collective agreement for salaried federal employ- ees (BAT) and the outline collective agreement for wage-earning employees of local authority administrative and other operations (BMT-G II). We have also concluded a number of company agreements with the works council that supplement collectively agreed benefits.

The compensation paid takes the importance of the assignment, the employee‘s age and his family status into account. Holiday and Christmas bonuses, shift allowances and performance- based components are also paid. Employees of Fraport AG are able to transfer up to 3,000 hours of overtime to a lifetime working time account and thus either take a lengthy, paid break during their working life or shorten working time before retirement.

There are different compensation systems in the Fraport Group outside the parent company, depending on the location and the area of business in which the investment operates. Fraport AG advises the investments about issues relating to collective agreements and is involved in the development and negotiation of collective agreements. Our medium-term aim is the central control of all the collective agreement systems in the Group.

Company old-age pension scheme

The old-age pension scheme is subject to the collective agreement about additional old-age pen- sion benefits for civil service employees (ATV-K). The employees of Fraport AG are insured with Zusatzversorgungskasse Wiesbaden (ZVK). ZVK operates essentially on the basis of financing via contributions. The old-age pension scheme for senior executives is also covered via ZVK to some extent. It is supplemented by a direct, employee-financed pension from Fraport AG.

80 Financial Report 2004 ... Group management report

We live in a world where division of labor has reached a very advanced stage – a world in which the mobility of people and goods is absolutely essential for economic success. Fraport‘s assign- ment as an airport operator is to guarantee this mobility by providing what the market requires. The long investment cycles make it necessary to manage the company on a sustained basis. The first reflection of this was our commitment to environmental protection. Sustainability is now expressed in other areas too, such as human resources and social policy, corporate management and our dealings with our neighbours in the Rhine – Main region. Fraport is a corporate citizen, a responsible member of society.

Honest communication is corporate responsibility put into practice

The debate about expansion of the airport is the current focal point of our active dialogue with all stakeholders both inside and outside the company. We are willing to maintain an open and purposeful exchange of opinions, particularly with critical partners.

Our environmental management system has been tested and validated

Fraport has had an environmental management system since 1999. We are aware of our special responsibility to the environment as airport operators. Environmental protection is an established corporate principle and is part of our corporate code of conduct. Avoidance of pollution is a more economically viable approach than the elimination of its consequences too. Our environ- mental management system has been validated in accordance with EMAS (Eco-Management and Audit Scheme), which is based on European regulations, and has been certified on the basis of the ISO 14001 standard that applies all over the world.

Responsibility to society

We take our responsibility to society seriously, by supporting social involvement and promoting education, sport, culture, health and the environment. Since 1997, Fraport has contributed a to- tal of € 16.5 million to the funding of more than 280 environmental projects. An additional total amount of € 4.9 million was made available in donations and for sponsoring purposes in 2004. Further information

Detailed information can be found in our sustainability report. This report can be obtained from Fraport directly and is also published on our website. Further information about environmental issues is available in the Internet too (www.fraport.com).