Annual report 2019
Greentech from biennial to annual edition First annual edition well-received
Year of evaluation and improvement to prepare for 2020 Processes and cost-awareness enhanced, renovations completed
Largest hotel in Benelux opens Long-cherished wish fulfilled: on-site conference hotel offers significant added value Cover photo: nHow RAI Amsterdam
Disclaimer: Whenever this annual report mentions ‘RAI Amsterdam’, ‘we’, ‘the company’ or similar indications, it refers to RAI Holding B.V. as explained in the ’Corporate governance’ section. Segments of this annual report contain opinions regarding the future. These segments can – without limitations – contain expectations on future realised and unrealised results, profits, payments, government measures, the impact of other regulating measures on the activities of RAI Amsterdam, subsidiaries and macro-economic trends and the performance of RAI Amsterdam. Such statements are preceded or followed by or include terms such as ‘believe’, ‘expect’, ‘prognosticate’, ‘feel’, ‘anticipate’ or similar. These future-oriented statements are based on current assumptions of future activities and are subject to known and unknown factors and other uncertainties, many of which are outside RAI Amsterdam’s sphere of influence. This means that future results can, in fact, differ substantively from these expectations.
In view of Title 9, Book 2 of the Netherlands Civil Code, the information given in the sections ‘In brief' 'Governance and risk management', 'About reporting' and 'Annexes' is also part of the section ‘Report by the management’. For reasons of presentation, this information is not repeated in this section. Index
...... 1. Welcome to the RAI! 4 ...... Foreword 5 ...... Profile 7 ...... Strategy and value creation 10 ...... Key figures 19 ...... Composition of the Supervisory Board 22 ...... Composition of the Executive Board 23 ...... 2. Executive Board report 24 ...... For organisers and exhibitors 25 ...... For visitors 39
.For community, city and society ...... 44 ...... For employees 58 ...... For shareholders and financers 63 ...... Preview 2020 67 ...... 3. Statement from the Supervisory Board 68 ...... Supervisory Board statement 69 ...... 4. Governance and risk management 76 ...... Corporate governance 77 ...... Risk management 82 ...... Compliance management 88 ...... 5. Financial statement 90 ...... 1.1. Consolidated balance sheet (before proposed appropriation of results) 91 ...... 2.1. Consolidated profit and loss account 93 ...... 3.1. Consolidated cash flow statement 94 ...... Consolidated overview of the total result 95 ...... General 96 ...... Notes on the consolidated balance sheet as on 31 December 2019 102 ...... Notes on the consolidated profit and loss accounts 2019 109 ...... 4.1. Company balance sheet (before appropriation of results) 113 ...... 5.1. Company profit and loss account 114
...... Notes on the company balance sheet as on 31 December 2019 115 ...... Proposed appropriation of profit 118 ...... 6. Other information 120 ...... Result appropriation in accordance with the statutes 121 ...... Reference to the audit statement by the independent accountant 122 ...... 7. About this report 124 ...... Stakeholder dialogue, materiality and reporting 125 ...... GRI table 127 ...... 8. Annex 132 ...... Personal details management and works council 133 ...... 9. Colophon 134 #01 Welcome to the RAI!
• Foreword • Profile • Strategy and value creation • Key figures • Composition of the Supervisory Board • Composition of the Executive Board
4 Foreword
Assessing, learning and improving: the roadmap to building the future of RAI Amsterdam
It is our pleasure to present you with this annual report for 2019. In the midst of the COVID-19 pandemic and its impact on our society and the RAI, last year now seems a very long time ago. At the time of writing no events are taking place at our venue and many have been moved to later dates. This is asking a great deal in terms of resilience while also underlining our solidarity – characteristics that are and will remain crucial to the realisation of major events. We are proud of everyone at the RAI as they manage this unprecedented situation in very limiting conditions. And it is in the same spirit that we offer you this annual report.
The year 2019 saw us welcome and organise a great many events. Take our series of successful Aquatech shows in Amsterdam, China and Mexico. The RAI is a global leader in the water technology sector, enabling us to contribute to the UN’s global development goals. A new aspect of Aquatech in Amsterdam last year was the Forum we organised a day before the event itself started. This was a prime example of the way we expand events and create more opportunities for inspiring meetings. Aquatech is the ideal illustration of our approach, being a global market leader in a growing trade sector. As we enhance the Amsterdam event we also ensure the preservation and growth of the overarching exhibition title.
In 2019, we organised GreenTech for the first time as an annual rather than a biennial event. We started the year with our very own Horecava. We welcomed ISE, Provada and countless other trade events, along with consumer exhibitions like VT Wonen, Pan Amsterdam and our own Huishoudbeurs / Nine Month Fair. Many IT conferences such as SPARK also returned to the RAI in 2019. Dutch Prime Minister Mark Rutte spoke at the World Retail Congress and there was a clear increase in the number of medical events, including the EHA and ECCMID conferences. The musical CATS, the Musical Awards Gala and Jumping Amsterdam were featured in our programming too. Our doors are always open to trade and consumer events, but did you know that a large number of students took their VU university exams in the RAI? Moreover, some 25,000 children visited the RAI for vaccinations, and we participated in a wealth of social sponsoring and other initiatives. As we always say, the RAI truly is for everyone!
In addition to organising and facilitating events, 2019 was – more than ever – a year of assessing, learning and improving. And not without reason.
Lower costs, more acquisitions With respect to our financial results we set ourselves a challenge. There were fewer large events in 2019 and a lower turnover than in the extremely busy year of 2018, which broke all records since the RAI’s establishment. We worked hard to realise extra turnover during the course of 2019 and with success. We managed to keep operational costs in check and were able to close the year above budget with an operational result of €8.8 million.
Renovating while staying open for business In 2019 we had more time than in the busy year of 2018 to look towards the future and convert our learning into new work methods. Our structure and culture programme reached the next stage, and we continued working on our sustainable future plans and spatial vision for 2030. A community manager was appointed as our central point of contact with the neighbourhood and local area, and we organised various activities that strengthened the RAI’s connection to the city. Our Donation Room, cooperation with ROC Amsterdam and ‘Heartwarming Amsterdam’ programme are just some examples of activities in which we used the strengths of the RAI to benefit society.
5 Various processes evaluated in 2019 and we standardised our internal working methods while maintaining focus on our clients. We worked on automation, including related to our marketing processes, in order to better serve our communities. Investments were made in expanding and improving our agent network and an office was opened in China. An operations and staff deployment plan was drawn up that prepares us for the Dutch ‘Balanced Labour Market Act’ and we also made considerable progress in the field of safety & security, and risk and compliance management.
Preparing for 2020
Our original event planning showed that 2020 was going to be another busy year. Throughout 2019, therefore, we worked hard on completing Hall 5 and moving forward with maintenance activities and various renovations.
The nhow Amsterdam RAI hotel was completed in early 2020. RAI Amsterdam realised the car park underneath the hotel for some 200 vehicles and will be operating the garage on behalf of nhow. The level of satisfaction of the first hotel guests confirmed that the RAI offers even more structural value as an event location due to the realisation of the exhibition and conference hotel in partnership with nhow.
Vision 2030: improving the logistic process and strengthening links to the city
RAI Amsterdam has plans to strengthen our links to the city while simultaneously increasing the sustainability of the logistic process during the build-up and breakdown of events. We aim to enhance our position as a place for locals to eat, exercise and enjoy cultural activities. We hope to better serve visitors to and residents of Amsterdam while improving the liveability of the local area. Having worked hard on the preparations in 2019 and enjoyed a fruitful dialogue with the city council, we are enthusiastic about the potential of the plan for all stakeholders.
In short: in addition to realising many great events during 2019, we have been building a sustainable future for the RAI. This annual report provides more details and we hope you enjoy the read. Thank you for your interest and involvement.
Amsterdam, 13 May 2020
Paul Riemens, CEO Maurits van der Sluis, COO
Paul Riemens (left) and Maurits van der Sluis
6 Profile
RAI AMSTERDAM
is an international exhibition and conference company; our venue, the RAI Amsterdam Convention Centre, is at the service of organisers and facilitates the successful realisation of events from A to Z; has a range of its own public and trade events and organises them at its site as well as in other cities outside of Europe; conducts its business in a socially responsible manner; stimulates the sustainable development of people, markets and its neighbourhood through its business activities, creating value for the city and its stakeholders.
Events
RAI Amsterdam Convention Centre
all facilities in place for a Our venue on the Europaplein square in Amsterdam hosts around 500 events every year and
hospitable welcome welcomes a total of some 1.5 million visitors on average. From large to small events, from exhibitions and conferences that take up the whole venue to theatre shows, from meetings of 50 to get-togethers for 50,000: the RAI takes care of everything down to the smallest detail and guarantees a hospitable reception. All the multifunctional facilities one could need are available and the RAI works continuously to increase the sustainability of its business operations, products and service provision.
a pleasant stay in the city The Convention Centre is located at the edge of the city centre, next to the A10 ring road. The
centre Amsterdam RAI train/metro station and Europaplein metro station are adjacent. It takes just ten minutes to get to the central hall of Schiphol Airport and even less to the heart of the Dutch capital – at only four kilometres, the distance from the Convention Centre to the heart of the city centre is
very short. Visitors can efficiently combine their business trip with a pleasant urban stay in the unique city of Amsterdam.
> For organisers and exhibitors > For visitors
RAI events in the Netherlands and abroad market leader in six sectors The RAI has a portfolio of its own events that are organised in Amsterdam and in other convention centres outside of Europe. It is active in the professional cleaning, remanufacturing, traffic technology, maritime, water technology and horticulture sectors.
7 national events: trade The RAI also has its own national events, including trade exhibitions such as Horecava (food
exhibitions and consumer service and hospitality) and consumer events like the Huishoudbeurs (lifestyle). All in all, the RAI
events has a well-rounded portfolio of titles. The events organised in Amsterdam provide turnover for the convention centre, while those held abroad reinforce our market share.
> For visitors
Stimulating the economy, complementing a city
RAI visitors contribute to the The RAI stimulates the economy in Amsterdam and the wider region. Hotels, restaurants,
local economy museums, transport operators and suppliers all benefit from the exhibitors and visitors who come to
the city for the (often international) exhibitions, conventions and events in RAI Amsterdam. Business visitors who stay for a few days are also good for the city and the wider region. They spend the day at the RAI and contribute more to the local economy, on average, than tourists. The IBC event alone, for instance results in a turnover of €100 million for the region over five days in September.
> For neighbourhood, city and society
CSR is integral to the way we think and act
care for our ecological and The RAI aims to stimulate the sustainable development of people, markets and the society at
social environment large’. With this in mind we take great care of our natural and social environment. Business processes are constantly made more sustainable and we work with local suppliers whenever possible. We also help organisers set up their events in a sustainable and responsible way, while our own events encourage eco-friendly innovations, contributing to new ideas and greater sustainability in a range of sectors.
> For neighbourhood, city and society
“RAI Amsterdam brings people together, connects and inspires by organising and facilitating meaningful meetings. These business activities help stimulate the sustainable development of people, markets and our neighbourhood, creating value for the city and our stakeholders”
8 Our employees: a warm welcome to the RAI
putting together an event is a RAI employees are proud of being able to offer a wide range of services which guarantee a
satisfying experience and new hospitable reception. At the end of 2019, RAI Amsterdam had 429 employees (398 FTE). There is
skills also a fixed group of flexibly deployed employees consisting of some 300 regular temps. Every year, RAI Amsterdam deploys around 4,000 such workers. It is energising for employees to work in teams to set up events and quickly switch from one event to the next. Working at the RAI is always a fun challenge. We are also proud of the volunteers who help us with our various donation programmes. Every day brings something new at the RAI!
> For employees
Our shareholders
the RAI Association and the RAI Holding BV has two shareholders: the RAI Association and the City of Amsterdam. The RAI
City of Amsterdam Association is a trade association which owns 75% of the shares. The remaining 25% of shares are owned by the City of Amsterdam.
> For shareholders and financers
ECCMID 2019
9 Strategy and value creation
MISSION RAI Amsterdam formulated a revised strategy for the 2019-2022 period in 2018. The mission/ambition and strategy were streamlined during the process.
STRATEGY The strategy has six pillars and aims to strengthen the core business and create an optimal balance between social benefits and costs. It identifies issues and goals for each calendar year up to and including 2022.
OUR BRAND The RAI Roadmap gives direction to our brand and the implementation of the strategy.
Mission
ambition: inspiring people RAI Amsterdam aims to contribute to the sustainable development of people, markets and the local neighbourhood. We implement this mission by:
organising and facilitating high-quality events which bring together, connect and inspire people and communities; being an ideal, attractive meeting place for everyone; conducting business in a socially responsible manner and creating both economic and social value.
Strategy
strengthening core business & The strategic objectives help RAI Amsterdam reach its ambition. By 2022:
social balance
We will strengthen our core business by helping events and communities grow. We become more future-proof by anticipating changing client needs and investing in even greater flexibility and cost control; We will create an optimal balance of social costs and benefits in the framework of our business activities, increasing our social value. We will continue to integrate corporate socially responsibility (CSR) within our operations, stay in constant contact with our stakeholders, remain valuable and indispensable for the city of Amsterdam, and make a substantial contribution (relative to our size) to the UN’s Sustainable Development Goals.
10 We have defined six pillars to help us achieve strong, stable results within a social balance of costs and benefits:
Client solutions: We provide our clients with an even better service by constantly expanding our service portfolio; Portfolio development: we work on the (continued) development, purchasing and acquisition of (new) titles, focusing on business-to-business events both in Amsterdam and abroad; Data & digitalisation: we apply technological developments to create value for our clients and work more efficiently. We also use it to develop new business models; Multifunctional area development: we are a meeting place for everyone. We want to facilitate business meetings and spontaneous encounters at our unique location in the heart of Amsterdam. RAI Amsterdam should be an attractive environment, before, during and after events; Building & infrastructure: we offer an accessible and safe place for valuable meetings. We increase the available square metres of exhibition space within the existing options and substantially improve logistics and traffic management. The location is fully equipped for business and leisure purposes; A learning organisation: we challenge ourselves to constantly work in smarter ways and ensure an optimal working environment for our employees.
Creating value with data and digitisation: the Horecava app
11 RAI Vision 2030
RAI Amsterdam has plans to improve its connection with the city while radically improving the sustainability of our logistics process. Moreover, we aim to be a place where the people of Amsterdam eat, play sports and engage in cultural activities even more than is currently the case. The idea is to better serve visitors to and residents of Amsterdam and to improve the quality of life in the neighbourhood. The RAI is discussing these plans with the city council. Part of the transition plans is an adaptation of the logistics involved in supplying the exhibition and conference organisation, including the construction of a tunnel under part of the RAI complex. The plan is for emission-free vehicles to enter the tunnel on the side of the A10 ring road, while the actual deliveries are made to transfer centres outside the city. This is also a way for the RAI to respond to the upcoming environmental zoning by the municipality.
The RAI also wishes to add public functions to its site in order to create more urban space for restaurants, sport centres and cultural experiences. In the framework of our sponsoring activities, the RAI site is already used for sports activities, and there are scores of other possibilities to better integrate public functions. The plans also call for much more public green spaces for cyclists and pedestrians. The RAI would like to become a place where Amsterdam meets the world and is even more connected with the city and its region. We are currently in discussions with the municipality about the best ways to execute these plans. In 2019 the process focused on the different solutions, the business case and the consultations with the council. In 2020 we expect to present both the plans and the business case, and continue elaborating on the concept with stakeholders.
METSTRADE 2019
12 Brand values
RAI Amsterdam has the following six brand values.
Hospitable the RAI is there for everyone At RAI Amsterdam you will be received personally, professionally and, above all, with a warm welcome. Our doors are always open, whoever you may be and whatever drives you. RAI Amsterdam is for everyone.
Customer-oriented
comprehensive service RAI Amsterdam appreciates who you are and what you need. We think along with you, look ahead
solutions and are dedicated to being of service so that you feel supported.
Innovative
spurring sustainable RAI Amsterdam is a stage for creativity and innovation. We can push the window of innovation in a
innovation significant way because our applications are widely applicable. This ensures that you get ahead.
Enterprising
creating the right conditions The quality of our location, concepts, products, facilities, services and people ensures that you find
for success all the elements for success at RAI Amsterdam. The RAI is ready to make the most of every opportunity, work together as partners and make an active contribution to your success.
Professional
sticking to deals RAI Amsterdam understands well that the quality of an event depends on solid preparation and sticking to agreements. We carefully manage expectations and offer you peace of mind.
Involved connected to our society RAI Amsterdam is embedded in the community, committed to sustainability and takes seriously its responsibilities towards people, our city and the world.
13 Sustainable business
reducing negative impact, Corporate social responsibility (CSR) is an integral part of RAI Amsterdam’s strategy. We work with
increasing social value our clients and suppliers to integrate CSR in our business on a daily basis. Proud that many activities make a social contribution, we also realise that our business uses natural resources, takes up space, generates noise and has an impact on society in other ways. By having a constant dialogue with our stakeholders we aim to operate in a way that is sustainable and experienced as such by society. We do this by:
Reducing and, where possible, neutralising any negative social impact of our business to the greatest extent possible. For example, we are continuously working on making our facilities, products, services and business processes more sustainable and focused on reducing and managing logistical movements around the RAI. We also encourage and help organisers to set up their event in the RAI in an eco-friendly and responsible manner; Increasing the social value of our business as much as possible. We are actively committed to the development of people and communities. The visitors we attract stay in the city and region, generating and maintaining employment and stimulating the local economy. Where possible, we work with local suppliers to ensure a safe learning, working and living environment. The events we organise should also actively stimulate the sustainable development of the sector. We do this by paying extra attention to social challenges on the exhibition floor. When describing events in the management report, we indicate where we are contributing to specific Sustainable Development Goals. We actively work on organising and facilitating meaningful meetings that contribute to the development of vulnerable groups in society. And we pay special attention to the Amsterdam metropolitan region.
Compliance with these principles requires our company to be continuously open to and interested in the immediate surroundings, city and society, in addition to commercial skills. We wish to learn and share experiences in order to constantly improve. This approach is central to the further integration of CSR within the RAI.
14 Contributions to the Sustainable Development Goals (SDGs)
The 17 goals set by the United Nations are the international reference point for sustainable development for all countries in the world. As an organisation that aims to be at the heart of society, the RAI is also committed to these SDGs. The overview below explains our contribution.
SDGs (Sustainable Development Goals) Worldwide objectives of the United Nations to which the RAI contributes
SDG RAI strategy
8 Work and economic growth We stimulate business and create spinoffs via the growth of our core activities 9 Industry, innovation and Our events and operational management provide a platform for industry, innovation and infrastructure infrastructure 11 Sustainable cities and communities We create value for the city of Amsterdam and the Netherlands 12 Responsible consumption and As an early adopter of proven technology/processes, we help build a circular economy and production climate action 13 Climate action See 12 17 Partnerships Meetings in the RAI contribute to partnerships to achieve the SDGs
Value creation The graph on the next page indicates how we create value for our stakeholders.
15 How RAI Amsterdam adds value for its stakeholders THESE RESOURCES ARE USED BY US TO
112,000 m2 Contributing to the Space for hire sustainable growth and development of people, markets and our neighbourhood is how we create value for the city and our stakeholders.
Partners & A range of partners 1.. organise and enable high-quality events. and suppliers, suppliers preferably local ones edivorp..2 a ,lufrednow evitcartta ingteem place for all those interested. othb etaerc dna ylbaniatsus etarepo..3 ylbaniatsus dna etaerc othb economic and social value.
R E S Knowledge 429 employees (398 FTEs) A AL and human and more than 4,000 LIS O temps per year E THES E G resources
Energy: 125 TJ, of which: Energie • 68 TJ green power (of which • 3.3 TJ generated in house • with 1,806 solar panels) • 51 TJ district heating • 6 TJ gas We increase our positive impact by bringing people together, connecting them and inspiring
Water 57,255m3
€126 million Financial outside capital We reduce any negative impact on our urban living environment and society at large
INPUT BUSINESS MODEL 16 FOR THESE CONTRIBUTE TO STAKEHOLDERS THESE SUSTAINABLE DEVELOPMENT GOALS
Organisers Work and economic RAI Amsterdam facilitates the organisation of events growth from A to Z and helps organisers make their events We stimulate business and create
and added value for stakeholders. core business.
Exhibitors
their products and services and connects them with their target group in the most relevant way possible. Industry, innovation and infrastructure Our events and business operations provide a platform for industry, Visitors innovation and infrastructure.
and successful place to spend time, brings people together, connects and inspires.
City Sustainable cities RAI Amsterdam represents the city to more than one and communities million international visitors. It is a catalyst for the local We generate value for the city of Amsterdam responsible manner.
Neighbours RAI Amsterdam aims to be a good neighbour and contribute to making our local area even more pleasant.
Responsible consumption/ climate action As an early adopter of proven Employees technology and processes, we help build a circular economy and employer, position, manager and colleagues, and proud support climate action. of the events they help realise. They feel that they have opportunities to learn and develop at work throughout
overall.
Shareholders Partnerships The meetings in the RAI help build of Amsterdam continuity, stable returns and reliable partnerships that help reach the UN dividends. sustainable development goals.
OUTPUT IMPACT 17 in Amsterdam Customer satisfaction
snis bit ito rga er xhi ors Vis rs O s E
abroad events
shows
other events
Dutch international events events
in Amsterdam
abroad
visitors exhibitors from abroad
green electricity turnover employees (FTEs) € €
ployee Em s operating result %
Energy from gas to district heating (in four years)
group equity
100 district heating total assets
gas
district heating solvency '15 18 '19 Key figures
Quality
Customer satisfaction Score (from 1 to 10) for satisfaction about RAI Amsterdam Convention Centre
2019 2018 2017 2016 2015
Organisers (events for third parties) 8 8 8 8 8 Exhibitors (RAI events) 8 8 7 8 8 Visitors (RAI events) 8 8 8 8 7
Employee satisfaction Percentage of scores 4 ('agree') and 5 ('agree strongly') on a five-point scale of overall satisfaction. Biennial survey.
2019 2018 2017 2016 2015
Employee satisfaction - 81% - 91% -
Quantity
Visitors Numbers x 1,000
2019 2018 2017 2016 2015
International events 444 616 372 330 471 National events 719 725 734 1,048 672 Stage shows 77 21 37 40 62 Other events 209 353 281 327 313 Total in Amsterdam 1,449 1,715 1,425 1,745 1,518
Elsewhere in the Netherlands - - - 7 - Outside of the Netherlands 169 109 96 83 64 Total outside of Amsterdam 169 109 96 90 64
Total 1,618 1,824 1,520 1,835 1,582
Exhibitors Number
2019 2018 2017 2016 2015
Exhibitors 16,694 20,769 17,786 18,464 15,816 Exhibitors from outside the Netherlands 64% 65% 63% 63% 60%
19 Organisers Number
2019 2018 2017 2016 2015
External organisers 386 387 421 458 434 RAI Amsterdam 20 18 22 19 24 Total 406 405 443 477 458
Events Numbers
2019 2018 2017 2016 2015
International events 73 65 64 52 41 National events 35 35 29 34 43 Stage shows 61 18 48 35 39 Other events 227 281 293 350 325 Total in Amsterdam 396 399 434 471 448
Elsewhere in the Netherlands - - - - 1 Outside of the Netherlands 10 6 9 6 9 Total outside of Amsterdam 10 6 9 6 10
Total 406 405 443 477 458
Personnel Employed by the group, average
2019 2018 2017 2016 2015
Employees, FTE 389 383 376 371 375 In the Netherlands 99% 100% 100% 100% 100%
Natural resources Energy: consumed and generated. CO2 emissions: involves scope 1 and 2 and from 2019 partly scope 3. See clarification in the Executive Board report, in the ‘For neighbourhood, city and society’ segment.
2019 2018 2017 2016 2015
Electricity consumption (GJ) 68,103 75,085 69,572 68,110 67,961 Gas consumption (GJ) 5,617 6,613 3,034 6,645 43,475 District heating (GJ) 51,371 57,395 61,452 47,990 20,546 Energy consumption from cogeneration (GJ) - - - - - Total energy consumption (GJ) 125,091 139,093 134,058 122,745 131,983 Of which generated by RAI solar panels (GJ) 3,273 1,697 1,482 1,665 1,491
Percentage of green electricity purchased 100% 100% 100% 100% 100% CO2 emissions by RAI Amsterdam (tonnes) 4,491 2,128 2,043 nb 5,929
Water consumption (m3) 57,255 64,631 62,336 55,765 66,084
20 Financial
Turnover and result x € 1 million
2019 2018 2017 2016 2015
Letting to third parties 28 30 24 20 18 Exhibitions and events 30 40 29 50 57 Catering 19 21 18 14 16 Hotel commission 2 3 3 3 3 Parking 7 7 6 5 6 Facility services 17 20 17 26 24 Interior 16 18 13 Building-related letting 10 11 10 Other 6 4 2 2 2 Turnover 135 152 122 120 126
Outsourced work 55 61 46 47 59 Wages and salaries, incl. social security and 33 32 30 29 28 pension contributions Amortisation 14 15 14 15 14 Other operating expenses 25 29 22 20 17 Operating expenses 127 137 113 111 117
EBITDA 22 30 24 24 23
Operating result 9 16 10 9 9 As % of turnover 6,5% 10,2% 7,9% 7,9% 7,1%
Net result 4 10 5 5 4
Balance sheet Group equity and balance sheet total x € 1 million
2019 2018 2017 2016 2015
Shareholder equity 92 98 90 88 87 Balance total 219 211 208 206 202 Solvency 41,9% 46,6% 43,4% 42,7% 43,0%
21 Composition of the Supervisory Board
The Supervisory Board consists of five members. Two positions are currently vacant: the member to be proposed by the City of Amsterdam and the member to be proposed by the RAI Association.
Ms A.M.H. (Annemarie) Macnack-van Gaal (1962), chair, member of Audit Committee
appointed 15 September Dutch national. Additional commissionerships: member of the
2015. Reappointed 16 Supervisory Board of Pathé Holding BV. Additional functions:
December 2019 in second member of the Board of Governors of VNO-NCW, board member
term until 1st general meeting of Start Foundation, member of the Committee of
after 16 December 2023 Recommendation for the foundation Het Vergeten Kind, member of the Advisory Board of Dienst Uitvoering Onderwijs (DUO), ambassador for SOS Kinderdorpen.
Mr J.W.Th. (John) van der Steen (1954), vice-chair. Also chair of the Audit Committee
appointed 7 April 2011. Vice- Dutch national. Additional commissionerships: chair of the
chair as of 2014. Reappointed Supervisory Board of BinckBank NV, chair of the Supervisory
16 April 2019 in third term until Board of Princess Sportsgear & Traveller BV, chair of the
1st general meeting after 16 Supervisory Board Coöperatie DELA, DELA Holding NV and
April 2021 Dela Natura- en levensverzekeringen NV. Other functions: board member of the foundation Donateurs van het Koninklijk Concertgebouworkest, board member of Stadhold Insurances SA, board member of AEGON association. Owner of Ansteen Holding BV.
Ms W.C.M. (Mariëlle) de Macker (1967), chair of the Remuneration Committee and member of the Selection and Appointment Committee until16 December 2019. Chair of the Selection and Appointment Committee as of 16 December 2019
appointed 17 March 2017 in Dutch national. Other functions: board member of Talent to the
first term until 1st general Top foundation, advisory board member of Transformation
meeting after 17 March 2021 Forums, member of the Supervisory Board of Maastro Clinics, owner of MCKR-in-business.
Stepped down as of 16 December 2019 Mr R.H. (Roelf) de Boer (1949), chair. Also chair of the Selection and Appointment Committee and member of the Remuneration Committee
appointed 23 April 2015 as Dutch national. Additional commissionerships: chair of the
proposed by RAI Association. Supervisory Board of De Beijer Groep BV, chair of the
Chair as of 24 April 2015. Supervisory Board of Verbrugge Terminals BV. Owner of Rodrik
Stepped down as chair and Consultants BV.
member on 16 December
2019
22 Composition of the Executive Board
Executive Board
The statutory Executive Board consists of two people.
Mr P. (Paul) Riemens (1962), CEO appointed in first term on 7 Dutch national. Areas of expertise: finance, HR, ICT, legal and April 2016. Reappointed on 16 venue. Additional functions: member of the Supervisory Board of December 2019 in second Twynstra Gudde, chair of the Supervisory Board of St Jansdal term until 16 December 2023 Ziekenhuis, chair of Concours Hippique International 'Jumping Amsterdam', member of the Supervisory Board of NEMO Science Museum.
Mr M. (Maurits) van der Sluis (1965), COO
appointed in first term on 7 Dutch national. Areas of expertise: marketing & digital,
April 2016. Reappointed on 16 commercial, clients and operations & CSR. Additional functions:
December 2019 in second chair of The Leading Centers of Europe, treasurer of the
term until 16 December 2023 Voorfinanciering- en Garantie Fonds foundation, vice-chair of Nederlandse Ski Vereniging, president of EMECA (European Major Exhibition Centre Association), board member of Stichting Vrienden Stadsarchief Amsterdam, member of the Supervisory Board of Stichting Cardiologie Centra Nederland, ambassador for Amsterdams Armoede elftal.
23 #02 Executive Board report
• For organisers and exhibitors • For visitors • For community, city and society • For employees • For shareholders and financers • Preview 2020
24 For organisers and exhibitors
406 EVENTS RAI Amsterdam realised 406 events in 2019 (2018: 405) that attracted 1.6 million visitors (2018: 1.8 million).
386 EVENTS FACILITATED IN THE RAI In total, the RAI facilitated 386 events (2018: 387) in the Convention Centre for external organisers. Together, these events welcomed 1,075,000 visitors (2018: 1,294,000).
10 EVENTS ORGANISED IN THE RAI In addition to the events for external organisers, the RAI Amsterdam Convention Centre hosted 10 RAI-organised events (2018: 11) which attracted a total of 373,000 visitors (2018: 421,000).
10 EVENTS ABROAD The RAI also exports its own successful events to other continents. Ten such events took place in 2019 (2018: 6), welcoming some 167,000 visitors (2018: 109,000).
FROM INTERNATIONAL TRADE EXHIBITIONS TO ENTERTAINING STAGE SHOWS The events organised abroad involve trade exhibitions, while the RAI Amsterdam Convention Centre hosted a broad range of events for professionals and consumers alike.
ORGANISER & EXHIBITOR SERVICES RAI Amsterdam offers organisers and exhibitors dedicated services before, during and after events. Based on our many years of experience, we are able to meet the widest range of demands.
STIMULATING SUSTAINABLE DEVELOPMENT When facilitating exhibitions, the RAI stimulates sustainable development among communities and participants, and in our direct and wider ecological and social environment.
25 RAI Amsterdam Convention Centre facilities
The following table shows the facilities provided by the RAI.
RAI Amsterdam Convention Centre facilities Properties Facilities
Total surface area 116.600 m2 Conference centres 3 interlinked conference locations Halls 12 interconnected halls, expandable with two semi-permanent halls Rooms 2 auditoriums, one large ballroom with 2,000 seats. A total of 70 conference and meeting rooms. Accommodation for 10 to 10,000 people per room. Foyers and lounges Multifunctional space for exhibitions, parties and celebrationsn Entrances 9 separate entrances: own entrance for each event Restaurants and bars 9 restaurants, bars and lounges. From buffet to à la carte Parking garages Capacity for 4,000 spaces on the premises Marina Own marina directly connected to the Amsterdam canals Train station met naam Amsterdam RAI, direct naast het RAI Amsterdam Convention Centre Two metro stations Amsterdam RAI Station connects to the metro line that forms a circle around the city. The new Europaplein station is situated just 50 m from the entrance to the RAI and connects the RAI to the city centre. Hotel (nhow) On-site congress hotel with 650 rooms and 200 parking spaces
Organiser Services
know-how and services that RAI Amsterdam offers know-how and a wide range of services to ensure that organisers’ events
make events run smoothly run as smoothly as possible. Our specialists provide advice and support on preparing an event or setting up the exhibition floor. Expertise and networking are deployed to ensure that the opportunities provided by the Netherlands, the city of Amsterdam and RAI Amsterdam as a convention centre are used to the fullest for the success of the event. Solutions are also offered in the field of IT, registration, logistics, audio-visual and media. Our staff work closely with clients to look at ways to achieve the highest possible return on investment. The experience the RAI gains from its own events is often developed further into valuable propositions for our clients.
new web tool goes live In 2019, the RAI implemented a new tool for organisers that gives them 24/7 insight into the status of the preparations for their event.
successful app leads visitors In 2019, the RAI won the ‘Best Use of Technology’ Award at the 25th AEO (Association of
to right stands during event Exhibition Organisers) Excellence Awards in London. These awards are presented annually to
and intensifies contact outside organisations that have made special contributions to the exhibition sector. The RAI received the
event period prize for our Huishoudbeurs app, which also won the Dutch Interactive Award for activation. It was developed to offer visitors and other interested parties information and entertainment outside of the event. One of the apps smart features is a ‘scratch & win’ function which allows visitors to win prizes in the month leading up to the exhibition. The success of this feature exceeded all expectations. The app was downloaded 64,000 times, people used the scratch & win feature nearly 140,000 times and collected 44,000 prizes during the exhibition. The app also guided visitors to the
26 ISE 2019 (Integrated systems Europe)
International trade exhibition Domain: information technology
The RAI had to prepare its maximum capacity for the 16th edition of Integrated Systems Europe (ISE), the world's largest audio-visual trade exhibition. An additional 9,000 m² of exhibition space in the form of temporary pavilions were added to the area in front of the building and a further 2,650 m² to the conference square, bringing the total event surface to 56,100 m². With over 1,300 exhibitors and 81,000 registered visitors, this edition was the largest to date.
An artwork by Bart Kresa, a world premiere in projection, was unveiled on the opening day of ISE. Sviatovid, a five-metre high projection sculpture was illuminated to 360° in True 4K using four 30,000 lm laser projectors, raising the bar for audio-visual art.
ISE and the RAI have built a top-quality, highly success- ful event over the past 15 years. In 2021, ISE will be moving to a new European city in order to accommodate its explosive growth. European Women in Technology
International trade exhibition Domain: information technology
European Women in Tech is the largest event for women of its kind in Europe. Over the course of several years, the conference grew from 400 to 4,000 attendees, attracting inspirational leaders and experts from around the world. European Women in Tech gives women (and men) the tools, inspiration, know-how and connections for their daily work and helps them realise positive change, including greater equality in the tech sector. stands they were looking for at the event. In addition, it was used for further dynamic scratch
promotions during the event to generate more attention for specific parts. Over 70% of the scratch & win participants picked up their prize immediately. The app was functional too: a floor plan showed visitors exactly where they were and where they had yet to go, and allowed them to compose their ideal exhibition day. The Excellence Award jury praised the app, among others, for the activation at various times before, during and after the exhibition. This helped realise the goal of intensifying contacts with the community outside the event period as well.
matchmaking: experiments New types of matchmaking were introduced at GreenTech, Horecava, Aquatech and Amsterdam and tests with various Drone Week during 2019 as the RAI experimented with and tested various platforms in this field. platforms Several propositions were made available at Aquatech: basic matchmaking, speed dating and a business package. The latter provided access to an exclusive table with business leaders and there was a great deal of interest in this option. The roll-out of the marketing automation platform was also tested during Aquatech.
augmented reality: 3D The HISWA featured a new AR proposition as visitors were for the first time able to see yachts via
visualised products augmented reality. Using their own phones, they could check out a number of 3D-visualised yachts from all angles. The RAI-developed proposition can be used for all events and is extremely suitable for exhibiting, experiencing and discussing large items in an exhibition environment.
high-quality Marketing and IT The RAI took an IT architecture based on a 360-degree client perspective into use in 2019. The CCDB (customer centric database) is our central database containing all client data, which is analysed and distributed to platforms such as our websites, apps, webshop and CRM system. The richer the client profile, the more specific the client interaction and the greater value we can realise for our clients. In addition, the CCDB makes it easier to comply with privacy regulations. A new CRM system based on the customer centric database also went live in 2019.
wayfinding with beacons The wayfinding was improved further in 2019. We achieved good results with beacons for position
integrated in visitor app determination on the exhibition floor. Visitor smartphones can now communicate with the infrastructure via a specifically developed app. Wayfinding was integrated within our visitor app in 2019.
virtual reality: 24/7 access to Another way of using 3D technology is VR (virtual reality). When visiting the RAI, (potential)
busy event organisers were shown Hall 5 as it would be after the renovations were completed. Other empty halls were virtually accessible in various exhibition concepts and set-ups. The visualisation with VR was developed internally.
blogs, whitepapers and event One of the focal points of 2019 was the further improvement of digital content and news in general. cases The RAI developed and shared blogs, whitepapers and event cases, improving both frequency and quality.
availability of hotel rooms The ability to attract large international events to Amsterdam is strongly dependent on the
crucial to meet demands of availability of sufficient hotel rooms at attractive prices. The increase in the number of rooms
international organisers available in recent years to 40,000, along with close partnerships with hotels and Amsterdam
29 Airport Schiphol, is making it easier for RAI Amsterdam to meet this requirement from international
organisers.
intermediation in over 105,000 RAI Hotel Services is the largest accommodation intermediary in Amsterdam and the surrounding overnight stays region, mainly booking hotel reservations for visitors to international events. Over 31,500 reservations were processed in 2019 (2018: 36,600), comprising more than 105,000 overnight stays (2018: 174,500). The RAI’s Hotel Services website provides information on the hotels’ sustainability labels, permitting this criterion to be highlighted during the selection and booking.
'I Amsterdam Approved' RAI Hotel Services only works with hotels that have the ‘I Amsterdam approved’ quality label. This
quality label label is granted by Amsterdam&partners (formerly Amsterdam Marketing) to hotels that meet certain standards and agree to reserve available rooms at a fixed rate for organisers, visitors and exhibitors during large city-wide events.
Exhibitor Services
broad range of services for RAI Amsterdam Exhibitor Services supports exhibitors in their preparations to make their event
exhibitors before, during and participation a success. Exhibitors can order products and services for stands via a special
after exhibitions webshop, including uniform stand constructions, host services, furniture, catering, flowers & plants, telecommunication & ICT facilities, parking tickets and stand cleaning. Contracts are in place with preferred suppliers for uniform stands, and the webshop offers a range of sustainable choices and alternatives.
all exhibitor services via one In 2019, we introduced a new webshop for exhibitors that ensures all services are provided via a
new webshop single platform. The webshop also offers a simplification of the product range with regard to electricity, licenses & permits and logistic services, allowing exhibitors to make easier choices based on better information.
standbuilding packages: more The standbuilder packages for exhibitors were optimised. We now offer greater flexibility and a
flexibility and a better better price/quality ratio in the various packages and options.
price/quality ratio
30 ECCMID
International conference Domain: medical
European Congress of Clinical Microbiology & Infectious Diseases (ECCMID) is one of the larger travelling conferences in Europe. Invasive fungal diseases come with a variety of diagnostic and therapeutic challenges. A very successful 29th edition of ECCMID was hosted in Amsterdam in April 2019, attracting a record number of participants. Aquatech 2019
International trade exhibition, owned by RAI Amsterdam Domain: water technology
Aquatech Global Events organises a series of trade exhibitions in the Netherlands and abroad, namely in Amsterdam, Shanghai and Mexico City. It is the world’s largest trade exhibition in the field of water technology and brings together policy-makers, specialists, scientists, the industry and other stakeholders to jointly address water issues.
Aquatech China 2019 was characterised as a successful mix of business opportunities, content, and Chinese and international networking. Opportunities in China are still increasing in this growing sector, and investments in water technology to optimise water quality are high on the agenda. The 12th edition of Aquatech China exceeded all previous editions, with a record number of 84,000 visitors from 95 countries and over 2,100 exhibitors in three days. tender and invoicing process Tender generators for exhibitors were improved, refined and optimised. The invoicing process for
improved further exhibitors was also improved in 2019.
significant investments in Safety & Security is a broad policy area and cybercrime, fraud and terrorism have become Safety & Security increasingly complex in recent years. Companies cannot resolve these threats alone and require a combined and integrated approach. In this framework, the RAI made agreements with the police, emergency services and control room, the local council, companies located in the Zuidas, public transportation bodies and the advisors to the Mayor of Amsterdam.
authorised to issue event- Thanks to our umbrella licence and associated covenant with the Amsterdam South district council,
related licences the RAI is authorised to issue various event-related licences. These licences could be requested via the event management system of the RAI from 2019. Permission for multi-storey stands is given via the same system, which makes it easier for exhibitors to request licences.
new Environmental Planning The new Environmental Planning Bill is the Dutch government’s way of simplifying all legislation
Bill: monitoring developments and regulations in the field of the environment and the like. It also has an impact on the RAI, which is why we monitored developments in 2019 and anticipated possible changes.
As part of the focus on safety, the RAI drew up the policy statement ‘Safe working conditions in the RAI’ in 2019. The Safety at Work handbook addresses the company emergency plan, the use of modes of transportation, tools for personal protection, standbuilding, working at heights, the use of hazardous substances and the environment, enforcement, and a procedure for activities on the RAI premises to prevent exposure to asbestos. It is available via: https://www.rai.nl/voorwaarden-en- reglementen/handboek-veilig-werken/
33 Opening of nhow Amsterdam RAI hotel
completion of conference hotel It has long been a wish for RAI Amsterdam to have a four-star hotel on our premises that would
on RAI premises with 650 allow us to offer tailored accommodation to conference and exhibition visitors. With the
rooms development and realisation of the nhow Amsterdam RAI hotel, this desire has become a reality. A hotel on the RAI site with 650 rooms and parking for around 200 cars is a strategic addition to RAI Amsterdam’s core activities. Responding to the needs of the market by creating an adjacent ‘headquarters hotel’ where event organisers and key exhibitors, speakers & visitors can all stay seriously strengthens our international position.
spectacular view over the city The world-renowned architectural firm OMA created the design of nhow Amsterdam RAI. The hotel has six different room designs and four types of room. Design influences from around the world create a dynamic mix of colours and patterns in these designs, while the full-height windows provide a spectacular view of Amsterdam.
Hotel nhow Amsterdam RAI
Certifications
In 2019, RAI Amsterdam successfully reapplied for the OHSAS-18001 (standard for occupational health and safety) and ISO-20121 (event sustainability) certifications via Lloyd’s Quality Assurance. We also retained the 5-hammer certification (national classification for facility conference and meeting standards) and EarthCheck 4.0 certification (CSR certification for sustainable operations).
RAI Amsterdam has the following certificates:
34 Recognised conference venue 5-hammers AIPC Gold EarthCheck 4.0 Green Key Gold ITs (Integral Accessibility Standard) ISO-9001 (Quality management) ISO-14001 (Environmental management) ISO-20121 (Event sustainability) UN Global Compact Sustainability barometer OHSAS-18001 (Occupational health & safety) BREEAM-Excellent certification (for construction of the Amtrium) Recognised training company (Samenwerkingsorganisatie Beroepsonderwijs - Bedrijfsleven)
RAI Insights: The ROI of event participation knowledge sharing focused on What are the actual returns for exhibitors from an event? Every year, RAI Amsterdam examines a increasing returns for theme and places it at the core of the annual RAI Insights report. The reports published over the exhibitors period 2017-2019 formed a customer journey trilogy. In 2017, the focus was on the customer journey of event visitors while the 2018 edition looked at exhibitors and the 2019 edition analysed organisers. Using this expertise, RAI Amsterdam aims to contribute to the further professionalisation of the event sector for and by all the stakeholders involved.
Cover of RAI insights report
for exhibitors
35 Expansion of Hall 5
expansion Hall 5 delivered The expansion of Hall 5 was realised throughout 2019 and in early 2020. Situated in the Europa
early 2020 complex on the Wielingenstraat side of the complex and originally built in 1961, the space can be used as an independent hall or combined with the surrounding halls.
4,000 m² expansion in Hall 5 was extended by 30 metres, giving it approx. 4,000 m² of extra multifunctional exhibition multifunctional exhibition space. The new glass façade showcases a modern and open appearance to local residents. The space main entrance for Hall 5 is the main entrance of the Amtrium, Entrance L, which reduces visitor flows in Wielingenstraat.
The project also included various sound-reduction measures as well as a green strip to create a clear demarcation with the street. Part of the facade of the previous hall is reused. Any trees felled were used to build wooden benches for the outdoor premises of the RAI, in the nearby Beatrixpark and for the Food Bank.
Hall 5
36 GreenTech 2019
International trade exhibition, owned by RAI Amsterdam Domain: horticulture technology
GreenTech can look back on a successful fourth – and first annual – edition in 2019. With a growth of nearly 20% to 12,489 visitors, the horticulture exhibition was more popular than ever. The five best represented countries were the USA, Germany, China, the UK and the Netherlands. The visitors appreciated the innovative nature of the event: 75% gave good marks to the quality of the innovations and new products. Jumping Amsterdam
Sports event Domain: sports
The ‘Diamond Edition’ of Jumping Amsterdam took place in January 2019. To accommodate this special 60th edition, the event was expanded with Hall 8. The area accommodating the general public and stands was expanded by 4,000 m², while the promo village grew by 700 m². This ensured a more varied selection of stands for our visitors, ranging from equestrian sports to jewellery and from the latest horse transportation vehicles to bridal fashion. The increase in the spectator gallery capacity made it possible for us to host more visitors. The programme was also adjusted, including the return of the Show Jumping and Dressage World Championships. For visitors
1.6 MILLION VISITORS 1,449,000 visitors visited the RAI Amsterdam Convention Centre in 2019, with the events abroad welcoming another 169,000. This means that RAI Amsterdam received a total of well over 1.6 million visitors.
FOOD & BEVERAGE Various restaurants and catering locations and many options for catering on the exhibition floor guarantee a pleasant stay. The culinary team of the RAI is innovative and driven to work in a local and socially responsible way.
Visitor Services
focus on the visitor experience RAI Amsterdam offers services to visitors to optimise their experience. We arrange hotel accommodation and transport, parking, a courtesy lounge (help desk, work and meeting places, etc.) and visitor catering.
Food & beverage
food & beverage: self-catered The delivery of food & beverages is an important component of every event. RAI Amsterdam
or in partnership with third organises this independently or together with external specialists, and supervises the quality and
parties realisation in all cases.
Five convention restaurants, two permanent restaurants The RAI Amsterdam Convention Centre has five restaurants: the Grand Café, First Floor Restaurant, Holland Restaurant, Café Amsterdam and the Amtrium restaurant. They are opened as required when an event or conference are taking place. There are another two restaurants in the convention centre which are operated by third parties: THE ROAST ROOM and Strandzuid. In
addition to the restaurants, various catering points in each complex are operated during exhibitions and conferences by cafés and eateries such as La Place, Sushi Time, Catering Creators and various other concepts.
In 2019, a programme of requirements was established for the renovation of First Floor Restaurant to include a press room, organiser’s room and Grand Cafe.
Mobility portal for visitors RAI took a mobility portal for visitors into use in 2019 which provides visitors with personal travel advice based on their point of departure and event. This allows RAI Amsterdam to dynamically influence the travel behaviour of visitors. The displayed travel options can be adapted to enable crowd control, making it a win/win situation for visitors, the neighbourhood and the RAI itself.
39 InnovationLAB Innovation is usually given as one of the top 3 most important reasons for visiting an exhibition. In response, RAI Amsterdam created the InnovationLAB, a place where ideas, innovations and news take concrete shape on the exhibition floor and online. The InnovationLAB is a collaboration with external partners TNO, 3TU Federatie and Accenture Innovation Awards.
The rich and diverse platform provided by the InnovationLAB encourages exhibitors to make their innovations more visible at RAI Amsterdam shows. In addition, it provides knowledge centres, research institutes and innovation partners with a platform to bring their new ideas to the market and enrich our exhibitions. The InnovationLAB is a platform where visitors see and experience innovations in their market online and in person. The RAI gives sustainability a prominent place in the InnovationLAB so that sectors and markets are encouraged to work and innovate in an eco- friendly way.
New: Amsterdam Baby Week After realising the preparations in 2019, a new event was introduced in February 2020: the Amsterdam Baby Week. The goal is to create a fixed moment in the year for consumers, companies, society and politics to meet and discuss the baby sector. The first edition of the event was very successful.
Record: METSTRADE welcomes nearly 27,000 visitors from 115 countries METSTRADE, including the Super Yacht Pavilion, took place in mid-November and welcomed a record-breaking number of visitors.
The Discover Rembrandt exhibition showcasing his life and work took place in the RAI in July. It featured reproductions of all 340 paintings by Rembrandt, including digital restorations of works that are damaged, hidden or even stolen, and the stories behind the paintings. Discover Rembrandt was a collaboration with Stabilo International and Enterprise & Art.
Events abroad
The RAI organises several of its hallmark trade exhibitions from Amsterdam in local versions abroad as well. Most of these activities take place in China and North and Central America.
The largest exhibition abroad in 2019 was Aquatech China, which welcomed nearly 100,000 visitors and 1,400 exhibitors.
Intertraffic Mexico has been switched from an annual to a biennial cycle.
Indonesia hosted its second and last edition of Intertraffic. After careful assessment, the RAI decided to stop the title for the time being.
The fourth edition of Interclean Istanbul took place in April. Based on the evaluation to date a decision has been made to stop organising Interclean Istanbul for the time being as well.
40 Musical Award Gala
Consumer event Domain: entertainment - gala
The 18th edition of the Musical Awards Gala was aired live from the RAI Theatre in Amsterdam. The spectacular show saw the top musical stars and best productions presented with prestigious awards. Hosted by Frits Sissing, the gala was watched by a TV audience of one million people. The Lion King received the most votes from the public, and the two leads from the musical Evita, René van Kooten and Brigitte Heitzer, won the awards for ‘Best Male and Best Female Lead’. The Addams Family won the award for 'Best Musical - Large' and Selma Ann Louis won the 'Best Musical - Small'. CATS
Consumer event Domain: entertainment - musical
The original English-spoken West End Musical CATS remains as popular in 2019 as ever having already sold more than 20,000 tickets in 2018. CATS premiered in Amsterdam over 30 years ago, featuring stars like Ruth Jacott as Grizabella, and has a unique position in the world of live entertainment. As the longest running musical ever on both sides of the Atlantic and the longest touring show in the US, it is a musical with a truly timeless appeal. ReMaTec Asia was organised in China. It was a successful first edition of the event.
In 2019, the RAI appointed agents in the three growth regions of the Middle East, Japan and Turkey.
RAI events abroad Exhibition title
Aquatech China Aquatech Mexico IBEX Interclean Istanbul Intertraffic China Intertraffic Indonesia Intertraffic Istanbul Intertraffic Mexico ReMaTec Asia WaterEx Beijing
RAI events abroad
43 For community, city and society
RAI Amsterdam contributes to the prosperity of Amsterdam and its hinterland as well as society as a whole. While the events obviously bring revenue into the city, RAI Amsterdam likes to be involved in other ways too. Examples include attracting local suppliers, offering opportunities to local residents who are disadvantaged on the labour market, limiting the impact of large events on daily life in the city wherever possible, and having an active dialogue with all our stakeholders. In all these ways, we aim to ensure that RAI Amsterdam continues to provide a valuable contribution to society.
Neighbourhood
Neighbourhood RAI council and informative neighbourhood meetings
dialogue about activities and Under the name 'RAI council', the RAI Amsterdam organised four neighbourhood meetings which
developments around the RAI were attended by an average of 40 local residents. The meetings focused on the activities of the
and the supply of information RAI, the neighbourhood page on the website, logistics, construction developments in and around Hall 5, licences granted by the RAI and the policy for taxis. The new community manager was introduced in June and has become the central and direct point of contact for the local area. In addition to the RAI council, there were four informative neighbourhood meetings related to the RAI 2030 development plan and the plans to build a tunnel for the logistical activities, greenery, the felling of trees on Wielingerstraat and the Winterparadijs event.
Neighbourhood letters
door-to-door and/or email The RAI sent eight neighbourhood letters during the course of the year to inform residents about events. Most were distributed door-to-door among 12,000 households. Around 350 people registered for the e-newsletter, which was sent nine times in 2019. In addition to information about the programming and developments in and around the RAI, free tickets were offered to various events and promotions. Over 200 neighbourhood residents made use of these options.
Tours
behind-the-scenes tour To give neighbourhood residents an insight into the organisation and preparations of events, the RAI organised a number of tours behind the scenes. These took place before or during IBC, Kingsland, GreenTech, Pan Amsterdam and Valhalla.
44 Neighbourhood involvement curling at Winterparadijs Neighbours of the RAI were given the opportunity to register for the curling tournament that took place during the Amsterdam Winterparadijs event. We received 150 registrations and family and friends of all ages enthusiastically took part in this highly successful event. The RAI hopes to further increase the involvement of local residents and is open to dialogue, ideas and suggestions related to issues such as limiting nuisance and improving the quality of life in the neighbourhood.
Community manager
central phone number and In 2019 the RAI appointed a community manager. Rik Hoogendoorn is responsible for stimulating, special email address for the supporting and maintaining good connections between the neighbourhood and the RAI. His task is
neighbourhood to ensure that local residents and businesses and the municipal institutions and visitors enjoy a good relationship with RAI Amsterdam. We also established a special phone number and email address for neighbours in 2019 to give them a central point of contact for all RAI-related issues.
Traffic and parking
4,000 parking spaces The RAI has 4,000 parking spaces on its premises and manages around 200 spaces for nhow Amsterdam RAI hotel as of 2020. Concentrating parking spaces on the premises strengthens our position by increasing customer satisfaction, stimulating smooth traffic flows and reducing any nuisance to the neighbourhood. Except for just 18 days throughout the year, the RAI premises offered plenty of parking space for visitors on all event days in the RAI in 2019.
The concept of registration-based payment for parking reduces the use of physical tickets. It has already decreased the number of tickets by 50% and stimulates the flow at peak times, which in turn reduces the traffic on surrounding streets.
sprinkler systems in all To further enhance safety in the RAI we started installing sprinkler systems in all parking garages in
garages late 2019.
many activities focused on RAI Amsterdam deploys various measures to reduce excessive car traffic around the complex:
stimulating use of public
transport, enhancing traffic Proactively stimulating the use of public transport to offer clients an alternative to driving.
flow and reducing nuisance Deals that combine tickets to exhibitions and transport, offered in partnership with public transport companies NS and GVB, are more convenient and cheaper for visitors; Smoother service provision via parking webshop, with more than 13,500 online transactions; Use of neighbourhood traffic controllers on busy days; Partnerships with NS, GVB and Taxicentrale Amsterdam (TCA); Facilitating electric cars: RAI Amsterdam now has 38 charging stations; During exhibitions for which busy build-up and/or breakdown periods are expected, external premises in Westpoort (outside the Amsterdam ring-road) of 15,000 m² are used as a buffer zone. Incoming traffic is directed to this area, where the vehicles are registered and then invited to drive through to RAI Amsterdam in an orderly fashion. This significantly spreads lorry traffic around the RAI. The buffer facilities can accommodate 90 trucks and were used on 51 days during 2019.
45 better communication re. In 2019, the RAI redefined the Traffic Regulations for (lorry) traffic in and around the complex. The
loading and unloading, less goal is to ensure that drivers are better prepared when coming to the RAI and reduce the number
roaming traffic of vehicles roaming in the neighbourhood.
less lorry traffic expected on In 2019, we created a design for the new P9 parking for the situation after the expansion of Hall 5. Wielingenstraat Lorries enter the RAI premises via Wielingenstraat and leave via P8 and/or P7, considerably reducing traffic on Wielingenstraat.
Noise four noise exemption permits We try to prevent excessive noise as much as possible using a so-called acoustic map. This
requested, careful monitoring enables RAI Amsterdam to predict when we need to apply for a noise exemption permit – four such
of sound standard permits are allowed per year. By monitoring the standards we can take preventive measures when necessary. The acoustic map was used five times in 2019. Noise exemption permits were required for four music events, for which we eventually received 19 (2018: 23) complaints related to three (2018: 4). These complaints were submitted to the RAI, the environmental service (Omgevingsdienst) and the Amsterdam Zuid district council. All other events were within the noise standards of the RAI environmental permit and caused no disturbance to our neighbours.
City
RAI Amsterdam stimulates the economy and development in the city, but our influence has a much broader scope than finance alone. The HR policy related to social engagement reflects an aim to generate a greater social return for the city of Amsterdam. In 2019, RAI Amsterdam took part in various important initiatives focused on creating more opportunities for unemployed youth (work agreement for tackling youth unemployment) and people with occupational disabilities. In addition, the RAI established and/or supported various charities and initiatives. Our heartwarming Amsterdam programme purchases local and fair ingredients, and our vision 2030 plan will see us transform the RAI from a complex of buildings into a new district in its own right.
46 Heartwarming Amsterdam
Kwadijk Beemster Amsterdam Ossenworst from Hesseling apple vinegar and basil
Amsterdam olive oil from Abmas IJ-haven Purmerend the most amazing sausage from Amsterdam mushrooms from noord Brandt & Levie veal from Mycophilia Waterlants Amsterdam Jordaan Weelde
liquors and jenever from Van Wees
Amsterdam centrum Osdorp sustainable and
home-made ketchup Jan van As from Stadskwekerij Osdorp
Amsterdam centrum fresh pasta from Al Dente, the Amsterdam Nieuw- pasta factory Vennep
cheese from Kees & Elly van Wees and fruit from vertical greenhouse
Haar- lemmer- meer RAI Amsterdam Amtrium organic fruit from De A passion for sustainable catering Olmenhorst
Amsterdamse bos Muiden
goat’s cheese from rondeel Ridammerhoeve eggs Sustainable venue Green LED and TS power Energy-saving lighting Moss sedum roof Electric waste transport Swill tank Compost and biogas solar panels Natural extraction of , ton smoke and heat electric charging stations iron paper glass carpet wood swill
Waste separation 100% recycling = zero
Waterless The Basement Chefs urinals Local, healthy and sustainable catering
Daylight scheme Central electric cooling 90% energy reduction The Amtrium BREEAM-NL Excellent building Combined Heat & Power City Farm
from own greenhouse. Contributes to climate P+R location
Presence sensors Bicycle shed Ride your bike!
District heating All-electric gas consumption reduced internal logistics by >95% in 5 years Thermal storage underground Taxi Electric and TCA
Escalators with motion sensors RAI Amsterdam stimulates the economy euro in the RAI is worth All main entrances euros in the region have revolving doors optimal climate control Focus on health, RAI Amsterdam Social return development and generates approx. tackling youth unemployment long-term employability , jobs in the Amsterdam training company Metropolitan region House of Hospitality increasing opportunities for A partnership agreement was signed in December 2018 to start up a hybrid learning environment in young people the RAI together with the ROC Amsterdam College. The goal is to establish a connection with the Amsterdam metropolitan region and together create a high-quality hospitality standard. In 2019 the co-creation worked on setting up a two-year educational programme (BBL) in Food & Beverage at level 2. The RAI chose to offer the study to refugees with a residence permit. In 2019 and 2020, a pilot started with two interns who have since reached level 1 at WOW hotel and Podium Mozaïek.
We increase opportunities for unemployed youth by offering the following:
Deployment and training of around 300 returning flexible workers: opportunities include participating in hospitality courses or obtaining traffic controller certificates; Tours: some 300 students from various schools visit the RAI each year to learn about this type of working environment. There are two to three tours a month on average, in which various intermediate and higher vocational schools (MBO and HBO) visit the RAI to be introduced to our dynamic company and gain insight into the internships offered; In 2019 we started a partnership with Kracht van Zuid, an organisation that helps people aged 10 to 23 in the Amsterdam South neighbourhood realise their dreams and make the most of their talent; Around 100 internships: the RAI’s internal traineeship office places students from the intermediate and higher vocational (MBO and HBO) levels in BBL (vocational learning track), BOL (vocational training) and combined work/education structures. The trainees learn about topics such as job applications, personal branding, time management and office skills. We also organise a RAI Discovery process at the start of the traineeship, an introductory day during which students visit the entire company. Trainees can later participate in a discovery programme, where they spend a day in other departments to gain knowledge and expand their skillset.
Heartwarming Amsterdam regional produce from local The ‘Heartwarming Amsterdam’ concept we deploy in our kitchens showcases a deliberate choice
suppliers and support for to work with regional products. The concept is aimed at offering RAI visitors a taste of Amsterdam
heartwarming initiatives via more organic and regional products. The RAI also supports local and sometimes vulnerable producers who depend on clients like the RAI. We now have a substantial network of local suppliers with products that offer added value to the Amsterdam metropolitan region or society in general. Care farms for outings or education, small local farms, urban greenhouses and dairy farms in the region are seen both as suppliers and a key source of inspiration.
from the region and city This supports vulnerable products in our urban region while enabling RAI Amsterdam to offer people a chance to enjoy distinctive products grown in the region and dependent on the season. In addition, keeping the route and distance between production and consumption as short as possible
helps reduce our CO2 emissions.
49 Salvation Army lunch The RAI’s Basement Chefs have partnered with the Salvation Army to prepare a complete three- course lunch for free for up to fifty people in a neighbourhood centre. Creatively composed of remaining food that can still be used, the lunch has two goals: serving a tasty lunch to Salvation Army clients while preventing food waste.
“It’s a great initiative from the RAI. Not only do they feed the hungry, they help bring people together to enjoy meals together and encourage valuable friendships.”
Yvonne van Lambalgen, Captain at Salvation Army Goodwill Centres Amsterdam
Green Deal for zero emissions and urban logistics
Green Deal signed together During the State of the Region in June 2019, the RAI and 49 other parties signed the Green Deal
with 49 other parties Zero Emissions Urban Logistics (ZES) agreement initiated by the Amsterdam Economic Board. The goal is to achieve emission-free deliveries in cities by 2025 and reduce harmful emissions due to city logistics to zero. In addition to testing new practical logistic solutions, the Green Deal tests combinations of new technologies, public-private partnerships and changes in regulations in order to enhance liveability, accessibility and safety in the Amsterdam Metropolitan Region.
We make the City
building the city of the future The RAI actively participated in the ‘We make the City’ programme. In 2019, thousands of city
together makers, politicians, government officials, scientists, entrepreneurs, activists, designers, artists and active civilians in Amsterdam and the greater metropolitan region came together to build the future.
Partnership with ROC Amsterdam
cooperation with sport and RAI Amsterdam partnered with the ROC Amsterdam College in various ways. Students from the
hairdressing studies new Urban Sport Trainer studies used some of our empty spaces and parking garages while a pilot project in December saw hairdressing students model the hair of visitors to a RAI event.
50 Donation Room stimulating a new destinations The Donation Room is a series of experiments in which the demand from society for usable items for ‘no longer needed items’ is linked to the available products during and after events in RAI Amsterdam. At the same time, organisers, exhibitors and other parties involved are looking into preventing any excess of items during events in the RAI. There were three Donation Room experiments in 2019, each involving items of which we knew that social organisations would benefit such as food products, furniture, plants and flowers, electronics, hobby materials, and decorative and office items. The Donation Rooms were a great success.
Stichting Heen en Weer charity parks electric vehicles Since May 2019, the charity Stichting HeenenWeer has been gratefully parking its vehicles at RAI
at the RAI Amsterdam while its usual facilities in the d’Oude Raai building are being renovated. HeenenWeer is a social service for residents who cannot walk long distances and is active in the De Pijp and Rivierenbuurt districts.
Neighbourhood theatre for people with dementia
the RAI supports furnishings Torendael, a residential facility for people with dementia, is located near the RAI. It has set up a for a theatre as social meeting theatre so that residents can ‘go out’ while remaining in a safe and familiar location. The theatre is
place also open to the public and aims to become a social meeting place for the neighbourhood. RAI Amsterdam helped Torendael in the realisation of the new theatre.
Unlet space used for good
free for social institutions The RAI offers social institutions the opportunity to use free of charge space that isn’t being let commercially. Organisations such as Humanitas, AIESEC, PACT Amsterdam and ROC Amsterdam have already benefit from this offer.
P+R parking
P+R location RAI contributes RAI Amsterdam is a designated P+R location for the municipality of Amsterdam. On days when to more accessible city centre there is little or no event-related traffic, drivers can park their cars in the garages on the RAI’s premises. Over 120,000 drivers used the P+R facilities in 2019, continuing the trend of a rise of 50% per year. The opening of the North/South underground service has further increased the
popularity of the RAI P+R location. Although P+R parking is not available daily due to events, the parking volume over 365 days equals 350 cars less in the city centre per day. To meet the growing demand, parking P4 also became a P+R facility in 2019.
51 Meningitis vaccinations
City interest Domain: medical
There was a great deal of interest among locals in the free meningitis vaccinations distributed by the municipal health service GGD in RAI Amsterdam. The health service invited children aged between 14 and 18 to be vaccinated for free, while the vaccination normally costs between 60 and 80 euros. There were huge queues in front of the RAI on two of the three vaccination days. Meningitis has become increasingly common among young people in recent years. In total, the RAI welcomed 52,000 visitors on the vaccination days. Society
Sustainable range RAI Amsterdam is constantly working on providing a sustainable range of products and services, covering everything from furniture, carpeting, lighting, plants and modular stand construction to food & beverages. The catering on the exhibition floor is particularly important to visitors. It is not realised entirely by RAI Amsterdam itself, with a part being provided by sub-contractors. In addition to innovating in our own kitchens, RAI Amsterdam has therefore entered a dialogue with these suppliers on ways to boost their level of sustainability. Whenever possible, all concession holders now include an organic product in their range as standard at all events in which they are active.
Environment Reduction in energy consumption and CO2 emissions smart energy consumption The total energy consumption in the convention centre was reduced to 125 terajoules in 2019, compared to 139 terajoules in 2018. This 10% reduction is partly caused by fewer event activities, with 16% less visitors in the RAI than in the previous year.
To a certain degree we cannot directly influence total consumption as the RAI supplies the power that our customers request. What we can do is ensure that organisers and exhibitors are helped in the most sustainable way possible. The following measures reduced energy consumption in 2019:
Since 2014 we have gradually been switching from gas absorption machines to the electric cooling of our buildings. The RAI no longer needs natural gas for cooling purposes, making the process at least eight times as efficient as before; We offer customers a sustainable and energy-efficient range of products such as LED lighting; We tackle unnecessary consumption with smart meters and presence sensors; We also offer day and night connections so that stands no longer need to be powered continuously: the electricity is switched off in the evening after the exhibition closes, except for those exhibitors who specifically order night power. This saves a great deal of unnecessary standby consumption at stands, which is beneficial for the environment and
cost effective for exhibitors; The RAI constantly monitors consumption data with specific software and closely tracks energy data; Natural gas is only used incidentally to heat spaces. It is used to generate the CHP and the boilers (in both cases: several days a year during peak loads).
53 Energy consumption in TJ (Terrajoule)
2019 2018 2017 2016 2015
Electricity consumption (GJ) 68,103 75,085 69,572 68,110 67,961 Gas consumption (GJ) 5,617 6,613 3,034 6,645 43,475 District heating (GJ) 51,371 57,395 61,452 47,990 20,546 Energy consumption from cogeneration (GJ) - - - - - Total energy consumption (GJ) 125,091 139,093 134,058 122,745 131,983 Of which generated by RAI solar panels (GJ) 3,273 1,697 1,482 1,665 1,491
All the energy consumed in the RAI is green power without a CO2 footprint. The RAI receives certificates from Centriq confirming the purchase from provider Vattenfall of green power generated via water power in Scandinavia.
solar roof supplies approx. 3.2 The RAI uses 1,806 solar panels, including 1,632 panels on the roof of Hall 8. Hall 8 measures
TJ of energy 12,000 m² and more than 60% of its roof surface is covered in panels – the maximum proportion allowed given its structure and use. The roof of the Amtrium accommodates an additional 174 panels.
The RAI placed 2,164 panels on the nhow Amsterdam RAI hotel, and the system was taken into use in the spring of 2019. As the generated energy is provided to and used by the hotel, it does not affect the CO2 footprint of RAI Amsterdam.
In 2019, the solar panels produced over 3.2 terajoules of energy.
transition to EarthCheck 4.0 Like many other companies, RAI Amsterdam has previously been subject to energy audits to prove
certification it is implementing sustainable energy savings in relation to the increasingly strict European energy legislation and regulations (EED). The transition to the EarthCheck 4.0 certification means no more energy audits will be necessary.
District heating vs. gas consumption
gas consumption nearly ended Gas consumption has dropped abruptly in the past few years: in 2019 it was just 13% of what it was four years earlier, in 2015, when the RAI started switching over to more sustainable district heating. The NUON pipeline has have a capacity of up to 18 MWh, which is sufficient for the RAI to switch entirely to district heating in the future. On balance, the RAI used 51 terajoules of energy from district heating and 6 terajoules of gas.
CO2 footprint
adapted calculation model, The RAI has been calculating its carbon footprint since 2012. The calculation method was
scope increased reevaluated in 2019 under the supervision of an energy consulting firm and various changes were
made to the principles. Our total emission is approx. 4,500 tonnes of CO2 . Switching from gas to
54 district heating has led to a major reduction in our CO2 footprint. District heating, which is distributed via the city grid, is a more sustainable energy source than natural gas as it is based on
the residual heat produced during industrial processes, power generation and/or waste separation.
Aiming to increase our focus on the reduction of CO2 emissions, we redefined the scope of our
CO2 calculation in 2019. It has now been expanded to include all waste – not just from the RAI, but
from our organisers, exhibitors, standholders and visitors too. The 2019 CO2 emissions from waste
were 1379 tonnes. Another new inclusion is employee commuting, which came to 440 tonnes of
CO2. The data cannot be compared to the data up to and including 2018 due to the changed
principles. We will set benchmarks during 2020 to gain an even better insight into our CO2 footprint
and performance.
Water consumption
reduced water consumption RAI Amsterdam consumed 57,255 m3 of water in 2019, compared to 64,631 m3 in 2018. This equals a reduction of 11%, similar to the fall in energy consumption which was 10%.
Water consumption x 1 m3
2019 2018 2017 2016 2015
Water consumption 57,255 64,631 62,336 55,765 66,084
Waste management waste management: zero The RAI aims to consume and produce in a sustainable way. Everything possible is done to waste, reduction, separation prevent waste and to process any remaining waste at the highest possible quality. The latter and reuse requires a strong focus on waste separation.
We are also increasing awareness among organisers, exhibitors and employees, recycling into new end products as much as possible, and doing our best to actively find market demand outside the RAI that allows us to identify and repurpose valuable waste flows. This helps prevent valuable materials and items from becoming waste in the first place. Our Donation Rooms, as described earlier in this segment, are a fine example of how we try to achieve this.
aiming for 100% high-quality Any waste that cannot be prevented is handled by our waste processing partner, a role taken on by
sustainable waste recycling Beelen in 2019. Although all waste flows were fairly accurately mapped down to their destinations based on circularity criteria in late 2018, we cannot yet publish this information. We always aim for 100% high-quality & sustainable waste recycling.
Where possible, the RAI applies the ‘polluter pays’ principle. This means that the parties who produce waste are responsible for its proper separation – separated waste is more sustainable and cheaper than unseparated waste.
55 Our company cafeteria tested a new compost machine in 2019, which will be structurally taken into use in 2020. Potentially this helps us realise a reduction of 85% in the 40 tonnes of swill waste from the cafeteria a year (100 kg of swill is only 15 kg of compost). The kitchen is using new chef’s whites made from a recycled and recyclable product and the experience gained will be used in developing a new clothing line for the RAI.
The RAI used recyclable carpet at various exhibitions in 2019 which was recycled in Belgium. We are now trying to find a new type of processing with our waste processing partner in order to achieve high-quality carpet recycling.
The Wastebuild 2019 exhibition used stand walls made from reusable materials. We then organised a session with various partners to see how the new panels will be used.
The re-use of removed IT materials and reclaiming of the raw materials they contain is realised via the ‘Ladder of Lansink’ waste hierarchy. No computer waste is exported to third-world countries.
The waste separation ratio on the RAI premises in 2019 was 59% (2018: 62%).
56 Waste management
€ €
Advisory role of the RAI helps reduce organiser and exhibitor waste Environmental inspectors help reduce waste during build-up and breakdown
stand stand stand supplier organisers
Food waste from Waste separation the kitchen events
wood carpet paper swill iron glass constr. & clean SWILL demol. rubble
Swill tank supplies new resource as compost and biogas separated waste
in % in 8
recycling = zero waste &
and processed into ecopower and other products For employees
FOR PEOPLE, BY PEOPLE RAI Amsterdam is a company for people, by people. Our employees are the outward face of the RAI and function as hosts during events. The RAI realises its company goals in large part by empowering its employees with responsibilities, streamlining their tasks and enabling them to make the most of their talents. The RAI is for everyone, and so is our HR policy.
SOCIALLY RESPONSIBLE AND SUSTAINABLE The RAI applies a socially responsible and sustainable HR policy focused on inclusivity, wellbeing, vitality and a healthy lifestyle for our staff.
STRATEGIC PERSONNEL PLANNING In 2019, RAI Amsterdam completed its first full annual cycle in the field of strategic personnel planning.
ABSENCE DUE TO ILLNESS Absence through illness increased to 4.3% in 2019. Although this score is still good compared to other companies, a programme was started to turn the tide.
OUR VALUES In 2019, the focus was on three of the seven ‘habits' (previously defined to support RAI employees in creating the desired culture and behaviour): ‘everyone matters’, ‘we are connected’, and ‘hard on content, soft on relationships’.
Employee satisfaction
overall employee satisfaction Employee satisfaction is a crucial yardstick and instrument for the continuous improvement of our of 81% company. The RAI undertakes a major survey of employee satisfaction every two years, the most recent being in late 2018. The goal of the survey is to map the experience of the employees and
collect their suggestions for improvement. This input is then used to try and increase the satisfaction, involvement and enthusiasm levels of our staff.
The 2016 survey gave an extremely high general satisfaction rate of 91%. Although this had fallen to 81% by 2018 this is still a very good score. The rating of the direct managers was the same, but most others were slightly lower, including the satisfaction regarding activities, working conditions, development opportunities and the organisation as a whole. The lower marks can probably be attributed to the fact that 2018 was a very busy year. There was no employee satisfaction survey held in 2019, but we did work on the implementation of improvements resulting from the previous survey in various parts of the organisation.
58 extensive training and Training and education
education plan
An extensive training and education plan has been implemented based on the findings and improvement proposals from the work floor in 2018. Together with the ROC Amsterdam College, we focused during 2019 on developing a hybrid intermediate vocational study for Food & Beverages employees that will start with 12 students in September 2020. We chose to gear this study for refugees with a residence permit.
Vitality
initiating, facilitating and RAI Amsterdam aims to promote the vitality of its employees so that they can be fit, energetic and promoting fitness campaigns healthy at work. A dedicated programme initiates, facilitates and promotes vitality campaigns among employees. A variety of tools, workshops and campaigns were offered under the ‘RAI Vitaal’ framework to help employees with health & fitness, stress & absenteeism prevention and the work enjoyment & work-life balance.
The 2018 programme was continued in 2019 and included training in areas such as sleep, exercise, nutrition and relaxation. Sports were also a part of the initiative, with courses given three times a week in boot camp activities, kickboxing and HIIT training.
Diversity
diverse teams; target for RAI Amsterdam strives to ensure the diversity of its departments in terms of age, experience,
Talent to the Top charter gender and competencies. RAI Amsterdam is convinced that diverse teams have a positive
reached and surpassed influence on results. At the end of 2019, the RAI had an exceptionally well-balanced staff with 50% women and 50% men (on an FTE basis). Moreover, the objective in the field of gender diversity as described in the Talent to the Top charter was also well met: the share of women in the policy team and second echelon of managers is 39%.
In April 2019, the RAI started setting up a hybrid learning environment in our Food & Beverages departments in cooperation with ROC Amsterdam and the House of Hospitality. The RAI has chosen to offer the schooling to refugees with a residence permit. A pilot started in 2019 and 2020
with two interns who have since completed level one at WOW Amsterdam Hostel and Podium Mozaïek.
59 Composition of personnel
Below are some cross-sections of the composition of the RAI’s employees.
Personnel Balance at the end of the year
2019 2018
EMPLOYEES
Male 205 48% 193 46% Female 224 52% 230 54% Total 429 100% 423 100%
FTE
Male 200 50% 190 48% Female 198 50% 202 52% Total 398 100% 392 100%
Personnel by age Percentage / FTE (balance at the end of the year)
2019 2018
BY AGE
25 and under 4% 1% 26 to 35 27% 25% 36 to 45 30% 32% 46 to 55 26% 28% 56+ 14% 14% Total 100% 100%
Personnel by discipline Percentage / FTE (balance at the end of the year)
2019 2018
BY DISCIPLINE
Commercial 48% 48% Operational 38% 39% Financial/management 14% 13% Total 100% 100%
60 Strategic personnel planning
further improvement and The objective of strategic personnel planning is to implement a functional and practical method that embedding in HR and can be integrated within the normal HR and department processes.
department processes
In 2019, we completed the first full cycle of the strategic personnel planning process and made the first quantitative translation of the six spearheads in the strategy. We also performed a qualitative inspection in 2019 on the basis of which we defined suitable actions and interventions that will take further shape in the coming years. The method applied teaches us to better work together on a horizontal level based on an integrated vision of the desired workforce. The cycle will be completed annually.
Absence due to illness
4.3% The absence due to illness rate in 2019 was 4.3%. Unfortunately, we have seen a rise in absence due to illness since our excellent score of 2.5% in 2017. The high degree of activity around events, combined with changes in company structure and culture, doubtless played a part in this rise. Although the score is still good compared to other companies, we have established an approach to further improve the results. The increase can largely be attributed to long-term absences.
Absence due to illness Percentage
2019 2018 2017 2016 2015
Total 4,3% 3,2% 2,5% 2,9% 3,2%
Cultural and structural transformation of the company
changes to culture and In 2019, the focus in our cultural and structural transformation programme was on three of the
structure focused on three seven 'habits': ‘everyone matters’, ‘we are connected’, and ‘hard on content & soft on relationships’.
themes We organised a Mindbugs Workshops and Female Leadership sessions, gave training courses in assessment interviews (for employees and managers) and took part in Talent to the Top. We also
selected a group of change agents whom we trained to become observers, helping identify and discuss patterns as part of the event teams.
Organisation setup and pay ratios
RAI Amsterdam aims to apply a horizontal organisation structure without too many intermediary management layers. The Statutory Board heads the management team comprised of business unit directors and business support managers. They manage departments with managers (depending on the scope) and employees. The RAI aims to offer directors, members, policy team members, managers and employees salaries that are in line with the market average. The pay ratio that reflects the total remuneration of the best-earning director compared to the average employee pay is 6.8.
61 From May 2019 we started translating the Dutch Balanced Labour Market Act (WAB) to our payrollers in service, some operations in the RAI and this was implemented in late 2019. We will further develop the policy and
moved to other payroll working agreements with our flex partners in 2020.
companies
Cooperation with RAI works council
frequent and constructive As in previous years, there was frequent and constructive dialogue with the works council in 2019. dialogue Topics discussed included the further development of the event process with a focus on horizontal collaboration. In addition, we often looked at the RAI’s Masterplan and issues related to safety, construction developments, consent requests, innovation, new business and working conditions. In addition to these formal consultations, the dialogue continued in a number of subcommittees, such as the HRM Committee, the Financial Committee, the Working Conditions Committee, the Terms of Employment Committee, the Pensions Committee and the Temps Committee.
62 For shareholders and financers
SHAREHOLDERS RAI Amsterdam has two shareholders: the RAI Association and the City of Amsterdam.
DIVIDEND A dividend of € 9.9 million was determined for 2018, to be paid in 2019 and 2020.
FINANCING In April 2020, the RAI agreed to a new financing scheme with three banks, thus concluding the refinancing process. This means that for the coming years the RAI continues to be ensured of a portfolio of long-term financing and current accounts. The club deal financing agreement with Deutsche Bank and Rabobank Amsterdam which was established in 2013 was hereby completely amortised.
RATIOS All financing ratios were easily met.
Shareholders
RAI Amsterdam (RAI Holding BV) has two shareholders: the RAI Association and the City of Amsterdam. The RAI Association owns 75% of the shares in RAI Amsterdam. It is a trade association that promotes the interests of 700 manufacturers and importers of passenger cars, trucks, trailers, bodywork and special vehicles, motorcycles and scooters, mopeds and bicycles. The remaining 25 percent of the shares is owned by the City of Amsterdam.
City of Amsterdam considers In 2016, the City of Amsterdam decided to start the sale of its municipal interest to a third party selling 25% interest under a specific set of conditions. This includes guaranteeing the continuity of the RAI, and
preserving the cooperation between the city and the RAI in the acquisition of international conferences, and the reachability and organisation of events.
Various meetings were held from 2016 to 2019 with majority shareholder RAI Association and third parties about the possible purchasing of the municipal interest.
City of Amsterdam postpones In October 2019, the City informed co-shareholder RAI Association and the organisation that it
sale in framework of would postpone the sale of its interest in RAI Amsterdam for an indefinite period in light of the
Masterplan 2030 planned development and realisation of Vision RAI 2030 and the associated Masterplan. While the intention to sell from 2016 is not off the table, all preparatory activities have been terminated.
63 Dividend
Dividend policy indexed sum of €2.24 million The most recent dividend policy was determined for the period 2013-2018. It included the provision that the RAI would pay its shareholders a fixed dividend per year of € 2,240,000 (price level 2014; indexed annually based on the consumer price index CBS). Should the net result be lower, the dividend would be reduced to at most the net result, and the unpaid dividend would be paid in the following year, if the net result was sufficient. The cumulatively owed dividend over the previous book years will therein never be higher than the (indexed) fixed dividend over the last book year.
Dividend Prior to the annual general meeting on 16 April 2019, the majority shareholder RAI Association announced its wish to put forward a proposal to pay a dividend of € 9.9 million – the full net result of 2018 – to a vote. The Executive Board then proposed a dividend of € 2.356 million, in accordance with the standard dividend policy. This resulted in a discussion about the scope of the dividend.
In an additional general meeting on 19 December 2019 it was decided that – in addition to the dividend of € 2.356 million over 2018 – there would be a dividend payment of € 7.549 million from the unappropriated result from 2018. The decision of when this dividend would be paid was postponed.
Although the City of Amsterdam and the Supervisory Board explicitly disagreed with the additional dividend payment, and the City asked majority shareholder RAI Association to refrain from a higher dividend payment than proposed by the Executive Board, the decision was accepted by the majority.
Financing
equal club deal, ratio arranged RAI Amsterdam entered into a club deal financing with Deutsche Bank and Rabobank Amsterdam
via intercreditor agreement in 2013. The banks had an equal participation in the financing arrangement, which was based on two identical credit agreements with both banks, with the exact same rates, covenants and
standard agreements. The ratio between the banks was arranged via an intercreditor agreement. In 2019, the RAI started preparing for refinancing with a longer term. In April 2020, the RAI agreed to a new financing scheme, bringing this process to a close.
3 facilities: long-term loan and RAI Amsterdam has a loan of € 20 million as well as a current account with each bank.
current account credits
64 Financing arrangement Convenant 2019 2020 senior Net Debt/ EBITDA <3,5 <3,0
The RAI took out two loans in 2014 for the financing of solar panels with Triodos Bank and the Amsterdam Investment Fund of the City of Amsterdam. The scope of both loans amounts to € 0.3 million by the end of 2019.
interest swap: interest fixed at At the end of 2013, the RAI entered into an agreement for an interest swap agreement with the
3.24% Rabobank and Deutsche Bank. RAI Amsterdam pays an interest percentage of 1.54% with a surcharge of 1.7% for Facility A. On balance, this means that RAI Amsterdam is financed at a fixed interest of 3.24% until 2020.
Financial covenants and conditions
The table below provides an overview of the financial covenants. The second table shows the conditions and securities linked to the financing.
Financing arrangement Convenant 2019 2020 senior Net Debt/ EBITDA <3,5 <3,0 solvency >30% >30% EBITDA € 1 million* >17,5 >17,5
* Annual review, 31 December
Financing conditions Voorwaarden en zekerheden
Conditions Securities • No expansion of loan capital • Mortgage on existing and new real estate • Change of Ownership • Biennial reassessment of RAI buildings • Max. Capex 12 million a year (excl. new construction) • Max. dividend up to net profit in financial year • Max. on intercompany loans against minority participations • Insight into top 10 events/occupancy rate
For further clarification of the financing positions please see the notes on the consolidated balance sheet in the financial statement (1.1.7 and 1.1.8).
WOZ value and corporation tax
additional tax burden of € 1.5 An amendment that limits the depreciation of buildings was implemented on 1 January 2019.
million due to changes in Buildings can now be depreciated to their basic value. Until May 2018, the base value of a building
depreciation method in own use was 50 percent of the WOZ (Valuation of Immovable Property Act) value of the building. From 1 January 2019, buildings can only be depreciated up to 100 percent of the WOZ value. On
65 balance, this means that buildings can only be depreciated to a lesser extent or not be depreciated
at all in the corporation tax, regardless of whether they are intended as investment or being used by the company itself. This measure results in an additional tax burden of approximately € 1.5 million compared to 2018.
Development and set-up of compliance function
Set-up of compliance function, The RAI started setting up a compliance function in late 2018 designed to comply with all the legal
started end of 2018 requirements and guidelines that apply to the organisation. We are also aiming to comply with and work in accordance to the standards and guidelines established by the RAI itself. The ultimate goal is to minimise the risks of non-compliance as much as possible and apply a very low tolerance in this field.
In this framework, the RAI is setting up a compliance management system that is based as much as possible on the starting points and principles determined in the ISO 19600 standard for compliance management. Important starting points are:
A dedicated, structured approach in a continuous process; A clearly defined scope and a risk analysis-based prioritisation in the context of the specific characteristics of the RAI organisation; A clear division and appointment of tasks and responsibilities, with a leading and committed role for top management; A cyclical process that enables the RAI to be a learning organisation; A focus on culture and behaviour in line with the core values and seven habits concept; Transparency on the compliance approach and the way non-compliance is handled.
The scope of the compliance management system is defined based on nine clusters. For more information, see Compliance management in the Governance and risk management chapter.
66 Preview 2020
As we entered 2020 everything pointed towards a great year for the RAI, with the annual calendar being as good as full. These expectations were almost immediately disrupted by the uncertainty that arose due to the spread of COVID-19. Taking our international target group into account, the RAI quickly started taking measures in January before the virus reached the Netherlands. However, in compliance with the national measures, no more events have taken place at the RAI since 12 March. Further details are provided in the segment ‘Events after the balance sheet date’ in the financial statement.
Financing
In April 2020 the RAI agreed to a renewed financing scheme with the banks , completing the refinancing process. This underlines the banks’ confidence in the future of the RAI despite the current pandemic that has brought society and the RAI largely to a halt.
Events postponed
Five RAI-organised events have been postponed, namely Aquatech China, Interclean, Intertraffic, GreenTech Amsterdam and GreenTech Americas. With regard to events organised by (external) third parties, we are carefully weighing all interests involved and in constant contact regarding any future decisions.
In conclusion
The Board thanks all stakeholders for their effort and involvement. We are also grateful to our employees for ensuring that we were able to improve many operational processes in 2019 in addition to successfully performing our core business: organising and facilitating events.
We would like to express a special thank you to Roelf de Boer. As chair of the Supervisory Board he worked hard to connect our corporate stakeholders and strengthen the RAI. The Board is extremely grateful for the way he fulfilled his position as chair and his supervisory, advisory and sounding board role as Supervisory Board member.
Amsterdam, 13 May 2020
Executive Board of RAI Holding BV
P. (Paul) Riemens, CEO M. (Maurits) van der Sluis, COO
The Executive Board declares that the drawing up of the financial statement is based on the assumption that the company will continue as a going concern.
67 #03 Statement from the Supervisory Board
68 Supervisory Board statement
The Supervisory Board hereby presents the Annual Report of RAI Holding BV.
The annual report was compiled by the Executive Board and includes the financial statement for 2019. Deloitte Accountants BV have checked the financial statement and provided it with an approved audit statement.
Our supervisory role
The responsibilities of the Supervisory Board include internal supervision of the Executive Board and the general affairs of the company. This involves activities such as the monitoring of the achievement of intended results. The Supervisory Board makes use of two progress reports submitted by the Executive Board: the year-to-date results (YTD) and the report to shareholders. The discussion of these reports is regularly on the agenda of both the Audit Committee and the full Supervisory Board. The report to shareholders follows non-financial goals as well as financial reports. In addition to following reports, the Executive Board transmits a business update to every meeting of the Supervisory Board covering the most important occurrences related to customers, markets and events.
The Supervisory Board discussed the topics explained below in 2019. Each bullet indicates whether the discussions were first prepared in a Supervisory Board committee: AC stands for Audit Committee, SC for Selection & Appointment Committee and RC for Remuneration Committee.
Strategy
The process and results of the implementation of the vision and strategy.
Safety and security
The safety & security policy and any related developments (AC).
Business and venue
The commercial developments, acquisitions, and market developments based on the business updates; The events organised outside of Amsterdam including the applied criteria (AC); The Masterplan 2030, including programme, approach, stages, investments and start-up costs; the renovation of Hall 5.
69 Financial
The 2018 accountant’s report (AC); The 2018 Annual Report, discussed with the external accountant (AC); The turnover and cost development (AC), based on the year to date reports, among others; The developments and profitability of the parking garages; The 2020 annual plan, including budget & investments (AC); The 2018 dividend decisions (also see the ‘For shareholders and financers’ segment in the Executive Board report) and dividend policy from 2019 including the process for determining the policy (AC); The consequences of the 2018 Tax Plan, in which the depreciation of buildings in relation to the WOZ value especially affects the result (AC); The 2020 audit plan (AC); The refinancing for 2021 (AC).
Organisation
The employee satisfaction survey and follow-up actions; The structure and culture process in the RAI, evaluation and follow-up steps; The pension scheme for RAI employees; The flex policy and temp partners, partly in view of the Balanced Labour Market Act (WAB).
Risk and compliance management
The process of and developments in Risk & Compliance-management (AC); The processing of a former asbestos incident; A fatal accident that occurred in 2018 and the related investigation; The licenses; A Brexit Impact Scan.
Shareholder developments
The municipality’s decision to put the planned sale of its shares on hold for an unlimited time; The report of shareholder meetings, held by individual Supervisory Board members; The departure of municipal alderman Kock.
Governance
The Supervisory Board regulations, which were evaluated and remain unchanged.
70 Our advisory/sounding board role
In its advisory role, the Supervisory Board acts as a sparring partner for the Executive Board. A range of topics have been discussed both within the Supervisory Board and with the Executive Board, and advice and comments were provided.
Our employer role
The Supervisory Board has discussed the following topics based on its employer role:
Executive Board
Extension of the Executive Board members’ management agreements; The evaluation interviews of the two members of the Executive Board for 2018 took place in March 2019 (RC); The Supervisory Board has prepared a remuneration report for 2018 for shareholders (RC); Providing insight into the Executive Board/employees remuneration ratio (RC).
Supervisory Board
Preparing the proposals for the reappointment of Mr Van der Steen, Ms Macnack-van Gaal and Mr De Boer; Performing annual self-evaluation (SBC); ‘Annual meeting to discuss any desired/required (additional) training during the appointment period of the Supervisory Board member’;
General meeting
The general meeting was held on 16 April 2019 and the topics discussed included:
The reappointment of Mr Van der Steen for a third term for a period of two years. See ‘About
the Supervisory Board’ for clarification; The 2018 Annual Report, including approval of the financial statements; The dividend over 2018 which, after a discussion about the amount, was determined at € 2.356 million plus an additional dividend payment of € 7.549 million from the unappropriated result for 2018; The implementation of the 2030 vision and strategy; The outline memorandum 2018-2023; The annual plan for 2019 (including budget); The shareholder report; The process of the sale of shares by the City of Amsterdam; Setting a date for the general meeting in 2020.
71
The general meeting discharged the Supervisory Board for its supervision and the Executive Board for its management in 2019. The entire Supervisory Board and Executive Board were present at the general meeting.
A second general meeting took place on 16 December 2019 and the topics discussed included:
Mr de Boer not wishing to be considered for reappointment to the Supervisory Board; The discharge of Mr De Boer in 2019; The reappointment of Ms Macnack-van Gaal as Supervisory Board member; The profile sketch of the Supervisory Board, strengthening the real estate experience aspect; The dividend for 2019 and preparations for establishing a new dividend policy; The remuneration of the Executive Board and reappointment of Mr Riemens and Mr Van der Sluis as members. Both have an indefinite employment contract. Although the City of Amsterdam voted against the remuneration policy as it is above the WNT standard, it was eventually accepted by an absolute majority.
The entire Supervisory Board and Executive Board were present at this general meeting.
About the Supervisory Board
Composition of the Supervisory Board and its committees The Supervisory Board formatively consists of five members and had four at the start of 2019. The appointment of a member on the recommendation of the City of Amsterdam as shareholder has previously been postponed due to the council’s intention to sell its shares.
In April 2019, the general meeting decided to reappoint Mr Van der Steen for a period of two years. Although he finished his second four-year term, the Supervisory Board proposed to reappoint him in accordance with the statutes and regulations due in part to his knowledge of long-term dossiers including the process of the City of Amsterdam selling its shares.
There were no changes in the membership of the Supervisory Board and its committees in 2019 until 16 December, when chair Mr De Boer informed the general meeting that he did not wish to be reappointed for a second term. Since then, the Supervisory Board has had only three members, and the composition of the committees was also changed. The audit committee consists of Ms Macnack-van Gaal and Mr Van der Steen, the remuneration and selection and appointment committees of Ms De Macker.
The personal details of the members, including their membership in the committees, are included in the ‘In brief’ segment in the ‘Composition of the Supervisory Board and Executive Board’ section.
72 Exemption All Supervisory Board and Executive Board members have been declared exempt by the company.
Consultations between Supervisory Board and committees The Supervisory Board held four scheduled meetings and one meeting by phone in 2019. Each was attended by all members of the Supervisory Board except Mr De Boer in the June meeting. All members of committees attended the meetings of each committee as well. This means that the attendance for Mr de Boer was 75 percent and for the other members 100 percent. Pre- consultation between the Supervisory Board members usually takes place in advance of the normal meetings. In addition to the aforementioned meetings with the Executive Board, the Supervisory Board also met in closed sessions, and maintained contact where necessary outside of the meetings.
The chair of the Supervisory Board and the CEO met regularly to discuss progress on various topics in 2019.
Members of the Supervisory Board visited various RAI events individually throughout the year to stay up to date with the operations and recent developments.
Representatives of the Supervisory Board spoke with the works council on 25 April and 1 November. The Supervisory Board chair met with works council representatives on 11 September.
The Audit Committee prepares the Supervisory Board’s decision-making and advises the Supervisory and Executive Boards of its findings in fields such as finance, internal risk management & control systems, risk analysis, applications of information technology (IT) and the activities and recommendations of the accountant. The Audit Committee held a total of five meetings during 2019, one of which was by telephone. The committee members, the CEO and the financial director attended all meetings, while the COO attended most. The concept report of the Audit Committee was a fixed agenda item in each subsequent meeting of the Supervisory Board. In all these meetings the Supervisory Board received advice on the decisions to be taken by the Supervisory Board as prepared by the Audit Committee. The chair of the Audit Committee and the financial director met regularly during the year under review to discuss the progress of various matters.
The task of the Remuneration Committee includes making proposals to the Supervisory Board and preparing accountability regarding the recommended remuneration policy and the actual remuneration of the members of the company’s Executive Board. The Remuneration Committee met twice in 2019, mostly to discuss the re-appointment of the CEO and COO of RAI Amsterdam.
The task of the Selection and Appointment Committee includes drawing up selection criteria and appointment procedures for members of the Supervisory and Executive Boards, assessing the size and composition of both boards and making proposals on the profile of the Supervisory Board at least once a year, reviewing the functioning of individual Supervisory and Executive Board members and reporting on it to the Supervisory Board at least once a year, making suggestions for
73 appointments and reappointments, and supervising the policy of the Executive Board with regards to selection criteria and appointment procedures for senior management. The Selection and Appointment Committee met twice in 2019, mostly to discuss the reappointment of the CEO and COO of RAI Amsterdam and the composition of the Supervisory Board. In the framework of the Masterplan 2030, the Supervisory Board decided to add an extra quality to the profile of the Supervisory Board related to real estate experience.
Annual report and financial statement 2019
The Audit Committee has discussed the financial statement and annual report with the Executive Board and the external accountant Deloitte at length. The Supervisory Board then discussed the annual report with the Executive Board.
The Supervisory Board accepts the financial statement and agreed with the Executive Board’s proposal to pay a dividend of € 2.356 million dividend tax over the year, and add the remaining profit to ‘unappropriated profit’ under shareholder equity. For a clarification of the interim dividend that was determined in December 2019 see the ‘For shareholders and financers’ segment in the Executive Board Report.
The 2019 financial statement will be presented for approval to the general meeting of shareholders on 21 April 2020. The Supervisory Board proposes that the financial statement be approved, that the Executive Board be given discharge for its management and that the Supervisory Board be given discharge for its supervision.
74 In conclusion
The Supervisory Board would like to thank the employees and the Executive Board for their efforts in 2019. We are also grateful to all stakeholders for their involvement.
On 16 December 2019 we said our goodbyes to Roelf de Boer as member and chair of the Supervisory Board. We were privileged to have him as our chairman. Roel never avoided difficult situations or missed a detail, putting his heart and soul into ensuring the best possible future for the RAI. We thank Roelf for his chairmanship.
Amsterdam, 13 May 2020
Supervisory Board RAI Holding BV Annemarie Macnack-van Gaal, chair John van der Steen, vice-chair Mariëlle de Macker
75 #04 Governance and risk management
• Corporate governance • Risk management • Compliance management
76 Corporate governance
RAI HOLDING BV RAI Holding BV is a private company in accordance with Dutch law.
Our governance is based on Book 2 of the Dutch Civil Code (BW), the statues, various internal regulations and the Corporate Governance Code 2016.
STRUCTURE The governance structure of RAI Holding BV includes a general meeting, a Supervisory Board, an Executive Board and a works council (OR).
Legal structure
RAI Holding BV and its group RAI Holding BV is a holding. The financial statement indicates which companies it comprises.
companies Wherever this annual report mentions ‘RAI Amsterdam’, this should be understood to refer to RAI Holding BV and all its group companies.
Statutes
The most recent statutes of RAI Holding BV are dated 18 July 2008. The latest statutes of the subsidiary RAI Amsterdam BV are dated 2 June 2015.
Corporate Governance Code
code fully recognised The Executive Board and Supervisory Board of RAI Amsterdam recognise the Dutch Corporate
Governance Code 2016. They apply the principles and best practice definitions therein insofar as they can be said to apply to RAI Holding BV.
‘explain’ The principles and best-practice definitions do not apply in some cases as RAI Holding BV is not quoted on the stock exchange and only has two shareholders. The following recommendations from the code are not applied or not fully applied:
provision 2.8.3 (publication of standpoint in takeover situations); principle 4.2 (supplying information to the general meeting).
In addition, RAI Holding BV deviates from the code regarding the term of the employment contracts of the Executive Board. The Executive Board has an indefinite employment contract, but the management agreement applies for a period of four years, which means that the code is
77 recognised:
Provision 2.2.1 (appointment and reappointment terms for management).
Governance of Supervisory Board
Supervisory Board regulations The regulations of the Supervisory Board and its committees refer to the chapters, principles and in accordance with Dutch provisions of the Corporate Governance Code 2016 in two ways. First, a large part of the code has Corporate Governance Code become part of the regulations themselves. Secondly, the regulations state that the Supervisory Board and Executive Board endorse the Corporate Governance Code. By making the chapters, principles and provisions part of the regulations, the code has effect in hindsight (with regard to accountability) and can be implemented by authorities as determined by the regulations. The Supervisory Board regulations are published on the website www.rai.nl.
Task
supervising and carrying out The task of the Supervisory Board is to supervise the policy of the Executive Board and the general
employer and advisory role course of affairs within the RAI and its associated companies. In addition, the Supervisory Board acts as employer to the Executive Board and abides by the remuneration ratios and company culture. Finally, the Supervisory Board has an advisory role in which it assists the Executive Board. In fulfilling its duties, the Supervisory Board is focused on the interests of RAI Amsterdam and its associated companies, and takes into account the interests of all those involved in the company. The Supervisory Board is responsible for the quality of its own activities.
Size and composition
five members The Supervisory Board should have at least three but preferably five members. The City of Amsterdam had, until October 2019, planned to sell its shares in RAI Holding BV so the position of Supervisory Board member with preferential rights from this shareholder had been kept vacant. The Supervisory Board therefore performed its tasks with four members instead but this number has been reduced to three after Mr de Boer stepped down on 16 December 2019. Vice-chair Mr Van der Steen has taken over as acting chair until Ms Macnack-van Gaal can be appointed as the new chair.
profile determines composition The profile is related to the composition of the Supervisory Board. It is discussed at the general meeting and with the works council whenever there are any changes. The profile is published on the RAI Amsterdam website (www.rai.nl).
safeguarding independent and The Supervisory Board is composed in such a way that its members can function independently
critical functioning and critically with regard to other members, the Executive Board and any other partial interest, in accordance with the Corporate Governance Code. Each Supervisory Board member should be able to evaluate the outlines of the overall policy. Additionally, all members have a specific field of expertise and related competences required for fulfilling their duties. The Supervisory Board aims to be composed in such a way that continuity is guaranteed and membership well-balanced with regard to the age, experience and male/female ratio.
78 Committees
three committees, decision As the Supervisory Board in its complete configuration has more than four members, there are
made to establish a fourth three core committees (in accordance with the regulations), namely an Audit Committee, a Remuneration Committee and a Selection and Appointment Committee. The committees are established and composed by the Supervisory Board. The full Supervisory Board remains responsible for all decisions, whether or not prepared by one of the committees. The regulations of the committees are published on the RAI Amsterdam website. The participation of Supervisory Board members in the committees (compositions of the committees) is indicated in the ‘In brief’ segment in the ‘Composition of the Supervisory Board and Executive Board’ section.
The decision was taken in December 2019 to also set up a dividend committee, aimed at establishing a new dividend policy for the coming years.
Step-down roster Supervisory Board members are appointed for a period of four years, and can be reappointed for another period of four years. After eight years, Executive Board members can be reappointed two more times for terms of two years – however, the reasoning behind this must be explicitly explained in the Supervisory Board report.
The step-down roster is indicated below and is published on the RAI Amsterdam website.
Step-down roster Maximum is three terms (4+4+2+2)
Name Date of first appointment Current Upcoming proposal for term stepping down or (re)appointment: first General Meeting after:
W.C.M. (Mariëlle) de Macker 17.03.2017 1st 17.03.2021 A.M.H. (Annemarie) Macnack-van Gaal 15.09.2015 2nd 16.12.2023 J.W.Th. (John) van der Steen 07.04.2011 3th 16.04.2021
Training
new members follow an After their appointment, every member of the Supervisory Board follows an introductory
introductory programme programme designed and financed by RAI Amsterdam. This focuses on general financial and legal affairs, financial reporting by the company, topics specific to RAI Amsterdam and its business activities, and the responsibilities of the Supervisory Board members.
No introductory training courses were required in 2019 as no new Supervisory Board members joined.
79 Once a year, the Supervisory Board also discusses any additional education that is
determination of desirable/required during the terms of the members.
supplementary education
Shares, options and loans
no personal loans and/or No Supervisory Board member was provided with shares and/or options or similar rights for
securities provided to obtaining shares in the capital of the company. No personal loans or securities were provided to
Supervisory Board members Supervisory Board members.
Remuneration policy & remuneration in 2019 included in financial statement The remuneration is described in the financial statement in the section ‘notes on consolidated
and remuneration report annual account'. This describes the remuneration policy and accounts for its application in 2019.
Governance of the Executive Board
The regulations for the Executive Board were last changed on 25 June 2014. They are based on Article 13, section 3 of the company statutes and serve as a supplement to the regulations and instructions that apply to the Executive Board in accordance with Dutch legislation and company statutes. The task of the Executive Board and its working methods are included in the regulations, which are published on www.rai.nl.
Shares, options and loans
no shares, options, loans or No Executive Board member received any shares and/or options or similar rights for obtaining
securities provided shares in the capital of the company. No personal loans and/or securities were provided to Executive Board members.
Remuneration policy & remuneration in 2019 The remuneration of the Executive Board is also included in the financial statement in the section ‘notes on the consolidated annual account' as well as in the remuneration report.
Management structure
The RAI Amsterdam policy team consists of two members who form the statutory Executive Board with six titular directors and three business support managers. The organigram below shows the policy team, with the statutory board and Executive Board members and directors in red and business support managers in grey.
80 Organigram RAI Amsterdam
Employee governance
Code of conduct
applicable standards RAI Amsterdam is aware of its social role and the resulting responsibilities towards all parties. Our actions and those of RAI employees are founded on the core values and business principles formulated by RAI Amsterdam. The code of conduct provides clarity by describing standards related to the actions and statements of everyone who represents RAI Amsterdam. The instructions given by the code of conduct are unconditional and not influenced by financial objectives. The code of conduct was implemented on 1 September 2006 and is published on www.rai.nl.
Whistleblower scheme procedure for reporting The whistleblower scheme determines how employees can report suspected violations to their suspected violations employer. It details the procedure to be taken by the employer and determines that employees who report suspected violations in accordance with provisions and in good faith will not be put at any disadvantage in their position as a result of the report. The whistleblower scheme was implemented on 1 September 2006 and is published on www.rai.nl.
81 Risk management
RISK ANALYSIS AND MANAGEMENT RAI Amsterdam enhanced its risk management activities during the course of 2019. We drew up a new policy and risk management was more thoroughly embedded in the strategic and operational processes. We also made a start on working with an integrated risk management system that covers all levels of the operational management and all parts of the company. The Board monitors the effective functioning of the system and aims for continuous improvement and strengthening together with the company.
Focus on realising goals
analysing and managing the Risk management and internal control are dynamic processes. RAI Amsterdam aims to analyse
risk of not realising goals and manage the risks that may arise in realising strategic, tactical and operational goals with a reasonable level of certainty.
reducing chances and/or Management measures taken in this framework are focused on reducing the chance that the risk
impact will occur and/or reducing the impact that the risk might have when it occurs.
based on principles and Risk management needs to be solidly embedded in the operational processes and integrally starting points of ISO 31000 applied in order to properly function. The risk management system set up by RAI Amsterdam is and COSO based on the principles and starting point of standards such as ISO 31000 and COSO.
uncertainties Although we try to limit them as much as possible, it cannot be excluded that certain risks not currently identified or considered significant may later have a negative effect on the capacity of RAI Amsterdam to realise its goals.
Risk attitude and tolerance
taking risks is part of business Entrepreneurship is one of the core values of RAI Amsterdam. This involves the tolerance to take risks in a controlled way. The goal of risk management is therefore not to exclude risks, but to gain insights that enable us to properly address opportunities and threats.
risk tolerance limits RAI Amsterdam does limit its risk tolerance. Financial risks, for instance, may not threaten the financial resilience of RAI Amsterdam and RAI Amsterdam always aims for a healthy safety margin with regard to its main financing ratio (net debt/EBITDA) of 15%. This implies a continuous availability of contracted financing capacity of at least 10 million euros as a liquidity buffer.
RAI Amsterdam aims to be a safe place to meet and is aware of its responsibilities in keeping our locations and events secure, healthy and accessible. In addition, we limit all safety and health risks as much as possible. Compliance with laws and regulations is the starting point. RAI Amsterdam
82 minimises the risks of non-compliance and applies a very low tolerance in this field.
Integrity is important and RAI Amsterdam applies a zero-tolerance policy with regard to bribery and corruption.
The risk attitude of RAI Amsterdam can be schematically represented as follows:
RAI Amsterdam risk attitude
Organisation in accordance with 'three lines of defence' model In setting up its risk management system, RAI Amsterdam applied the 'three lines of defence' model, a structure of measures comprised of an operational line, risk management function and internal audit function.
first line: operational The first line of defence is primarily responsible for the operational management and takes management ownership of controlling related risks. This is realised via a proper set-up of the organisation, which involves both structure and processes as well as culture.
second line: risk & compliance The second line of defence consists of the risk & compliance function that supervises the set-up ad
function functioning of the risk management system. The second line reports to the Board and line management.
third line: internal audit The third line of defence comprises an independent internal audit function. Based on an internal audit plan that is updated annually, the function supervises the set-up, existence and functioning of the administrative organisation, internal audit and control measures.
At this time, RAI Amsterdam has an internal audit approach that is limited to ISO certifications. Expansion of the third line activities to other sub-areas will take place as soon as the second line has been fully expanded.
83 'Three lines of defence'-model
Supervision
Internal: Supervisory Board The Supervisory Board monitors the operational management of RAI Amsterdam, among others. It approves (changes to) the risk management policy, and risk management is regularly included on the agendas of meetings of the audit committee and Supervisory Board. The Supervisory Board employs the external auditor and approves their audit plan on an annual basis.
external accountant The external accountant also acts as supervisor and monitors the set-up, existence and functioning of the administrative organisation and internal supervision based on an annually updated audit plan. The external accountant reports to the Supervisory Board via a management letter and an accountant statement in the annual report.
Risks
strategic risks A different kind of risk inventory was made in 2019 compared to previous years. Due to the explicit link to the goals of RAI Amsterdam, risk management strengthens performance management.
There are 18 risks that are considered most relevant in order to realise these goals:
The risks are categorised as follows:
84 current risk and consequences Evaluating the actual risks for RAI Amsterdam involves assessing both the current risk of an incident occurring and the current consequences (measured in financial terms) this might have on RAI Amsterdam.
evaluation of risk impact The combination of the current risk and current consequences determines whether the current risk level is seen as low, medium or high. The evaluation explicitly takes into account the monitoring procedures and measures taken to mitigate the relevant risk. The determination of risk and consequence is indicated in the matrix table. The letters in the matrix indicate the type of risk, with S representing strategic risks, O operational risks, and F financial/administrative risks. The associated numbers refer to the specific risks as described above. The colours represent the following risk levels: low (blue), medium (grey) and high (red).
Main risks and mitigating measures
Increasing competition
strategic portfolio policy and The commercial playing field and competitive position of RAI Amsterdam can be affected by
developing new business activities or developments by competitive parties in the market. With this in mind, we have developed a strategic portfolio policy and keep a close eye on the market position of our portfolio.
85 This is translated into a market strategy for each domain. The new business process is aimed at developing new propositions and protects RAI Amsterdam from declining turnover due to the
competitive risk.
Changing client preferences lifecycle management events, Client preferences related to destination, venue, type or event or product and service provision may client surveys, renewing change to the detriment of RAI Amsterdam. This is why we map the lifecycle status of our events portfolio and developing new and constantly monitor client preferences and satisfaction levels. The RAI aims to continuously business renew its portfolio and product range. The new business process is focused on developing new propositions and protects RAI Amsterdam from declining turnover due to the client preference risk.
Changing environmental factors
stakeholder management External factors like the reachability and appeal of Amsterdam or the wishes and preferences of
programme. Spatial stakeholders in city and neighbourhood may change to the detriment of RAI Amsterdam. We
development geared toward constantly monitor these factors and translate the results into a stakeholder management
safer, more reachable and programme. In addition, the RAI works on a multifunctional spatial development and aims to make
more attractive RAI our venue even safer, more accessible and more attractive to counter this risk.
Attracting/retaining talent
competitive reward policy The tight labour market – especially in Amsterdam – is resulting in a so-called war on talent. Talent
above market level, efficient is essential in working to achieve the high ambitions of RAI Amsterdam on a daily basis. With its
acquisition & selection and competitive reward policy above market level, an efficient acquisition & selection procedure and
agreeable working climate agreeable working climate with plenty of space for employees to grow, the RAI aims to attract and retain this talent.
Cybercrime
cyber security policy defined, Cybercrime is one of the greatest threats to businesses worldwide, and RAI Amsterdam is not
measures being realised immune. We have therefore defined a cyber security policy and are taking organisational and physical measures to mitigate this risk as much as possible. A periodical external audit of the soundness of these measures is part of this approach.
Safety and security integrated safety management RAI Amsterdam is a multifunctional venue where lots of people come together. This implies health
system developed & safety risks for visitors and employees and the risk of damage or theft of their property. We have therefore developed an integrated safety management system that involves a risk-based focus on strategic and operational safety management issues. The effective functioning of these measures is monitored.
Update April 2020: the Dutch government has decided that all events until 1 June 2020 must be cancelled, including those at the RAI. A cost-saving programme has been started to limit the consequences of this measure on the RAI’s operational management where possible. Non- essential investments have been postponed and management is primarily focused on liquidity. The event calendar has been adapted, with as many events as possible being postponed until a later date in 2020.
86 Compliance – license to operate integrated compliance The regulations with which a venue like RAI Amsterdam must comply are complex and subject to
management system constant change. Compliance with laws and regulations is the starting point, which is why we set
established up an integrated compliance management system in 2019, based on the starting points and principles of ISO 19600.
87 Compliance management
RAI Amsterdam aims to comply with all legal and licence-related requirements and guidelines that apply to the organisation. We also strive to comply with and work in accordance with the standards and guidelines that the RAI itself has established. RAI Amsterdam aims to minimise the risks of non-compliance as much as possible and has a low tolerance in this respect, hence the establishment of a compliance management system.
In setting up its compliance management system, RAI Amsterdam closely followed the starting points and principles in the ISO 19600 standard for compliance management wherever possible. Key starting points included:
A dedicated, structured approach in a continuous process; A clearly defined scope and a risk analysis-based prioritisation in the context of the specific characteristics of the RAI organisation; A clear division and appointment of tasks and responsibilities, with a leading and committed role for senior management; A cyclical process that enables the RAI to be a learning organisation; A focus on culture and behaviour in line with the core values and seven habits concept; Transparency regarding the compliance approach and the way non-compliance is handled.
The compliance management system has integrally mapped the compliance obligations of the RAI and secured compliance via programmes. The progress is constantly monitored and discussed in the risk & compliance board, which includes the Board, senior management and the risk & compliance officer.
88 further improvement in 2020 In 2020 the RAI aims to update its internal guidelines, support compliance with a professional compliance management tool and further strengthen monitoring with dedicated reports and dashboards.
89 #05 Financial statement
90 1.1. Consolidated balance sheet (before proposed appropriation of results)
Consolidated balance sheet, assets Amounts x € 1.000
Ref. 2019 2018
ASSETS
Fixed assets
Intangible fixed assets 1.1.1. 9,174 8,507 Tangible fixed assets 1.1.2. 177,348 166,811 Financial fixed assets 1.1.3. 1,134 1,134 187,656 176,452
Current assets
Stock 443 365 Receivables 1.1.4. 30,388 27,787 Securities 41 41 87 - Cash 654 6,114 31,613 34,307
219,269 210,759
91 Consolidated balance sheet, liabilities Before the appropriation of results, amounts x € 1,000
Ref. 2019 2018
LIABILITIES
Shareholder equity 1.1.5.
Subscribed capital 2,730 2,730 Share premium 22,006 22,006 Statutory translation differences -209 -262 Other reserves 63,789 63,789 Unappropriated profits 3,562 9,905 91,878 98,168
Provisions 1.1.6.
Deferred taxes - 161 Other provisions 1,397 1,305 1,397 1,466
Debts
Long-term liabilities 1.1.7. 47,205 51,423
Short-term liabilities 1.1.8. 78,789 59,702
219,269 210,759
92 2.1. Consolidated profit and loss account
Consolidated profit and loss account Amounts x € 1,000
Ref. 2019 2018
Net turnover 2.1.1. 135,438 152,335
Sum of operating revenues 135,438 152,335
Costs of outsourced work and other external costs 2.1.2. 55,106 60,722 Wages and salaries 2.1.3. 25,823 25,207 Social security contributions 3,837 3,516 Pension contributions 3,553 3,474 Depreciation of intangible and tangible fixed assets 2.1.4. 13,648 14,868 Other operating expenses (including other 2.1.5. 24,670 29,023 personnel costs)
Sum of operating expenses 126,637 136,810
Operating results 8,801 15,525
Interest proceeds and similar - - Interest costs and similar -2,311 -2,524
Sum of financial proceeds and costs 2.1.6. -2,311 -2,524
Profit on ordinary activities before tax 6,490 13,001 Taxes on profit on ordinary activities 2.1.7. -2,928 -3,096
Results after tax 3,562 9,905
93 3.1. Consolidated cash flow statement
Consolidated cash flow statement Amounts x € 1,000
2019 2018
Cash flow from operational activities
Operating profit 8,801 15,525
Adjustments for: Depreciation on intangible and tangible fixed assets 13,647 14,868 Changes in long-term liabilities -70 -171 Changes in provisions 13,577 14,697
Changes in stock and receivables -2,766 -597 Changes in short-term liabilities (excluding bank 10,684 -4,080 credit)
7,918 -4,677
Paid interest -1,863 -1,864 Paid taxes on profit on ordinary activities -3,242 -1,536 -5,105 -3,400
Total cash flow from operational activities 25,191 22,145
Cash flow from investment activities Investment in tangible fixed assets -22,757 -14,481 Investment in intangible fixed assets -1,996 -1,354 Divestment in financial fixed assets - -
Total cash flow from investment activities -24,753 -15,835
Cash flow from financing activities Dividend payment -9,905 -2,316 Change in debts to credit institutions 4,007 -3,353 Repayment of long-term liabilities in book year
Total cash flow from financing activities -5,898 -5,669
Changes in cash and bank credit -5,460 641
Cash and bank credit as on 1 January 6,114 5,473
Cash and bank credit as on 31 December 654 6,114
94 Consolidated overview of the total result
Consolidated overview of the total result Amounts x € 1,000
2019 2018
Consolidated net result after taxes attributable 3,562 9,905 to the legal entity
Translation differences foreign participating interests 53 135
Total of the direct changes in the shareholder 53 135 equity of the legal entity as part of the group equity
Total result of the legal entity 3,615 10,040
95 General
RAI Holding BV has its registered office in Amsterdam (Europaplein 24), Chamber of Commerce number 33093880. The company’s financial year runs from 1 January to 31 December.
Activities
RAI Holding BV is a holding company. The main activities of the RAI are accommodating RAI-organised events, and providing facilities to third parties for exhibitions, conferences, corporate events, theatre productions and niche events.
Continuity
These consolidated financial statements have been prepared assuming that the company will continue as a going concern.
Coronavirus: continuity assumption still applies This annual report is published at a time when the COVID-19 coronavirus has reached Europe and the Netherlands. The outbreak of the pandemic and the measures taken by the Dutch government have had a major impact on the operational management of the RAI. In response to these developments, the RAI has maximised its focus on savings, postponing non-essential investments and focusing on liquidity. For further details in this framework, we refer to the ‘Events after the balance sheet date’ segment at the end of the financial statement. Based on the currently available facts and taking into account the measures taken by the RAI and the financial position of the company, management believes that the continuity of the company in the current circumstances is secure.
General principles for valuation
The annual accounts were drawn up in accordance with the generally accepted principles for financial reporting in the Netherlands and meet the legal provisions regarding the annual accounts as recorded in Title 9, Book 2 of the Netherlands Civil Code (BW). The principles for the valuation of assets and liabilities were applied consistently during the previous and current year. The principles for valuation and result determination apply to both the consolidated and company annual accounts.
Shareholder structure
The RAI Association has a 75 per cent interest in RAI Holding BV. The remaining 25 per cent of the shares are held by the Municipality of Amsterdam.
Principles of consolidation
The financial data of RAI Holding BV and all its group companies are consolidated. Group companies are participations over which RAI Holding BV has decisive control. The other participating interests are not consolidated.
The financial information of companies acquired during the year under review is consolidated from the moment that RAI Holding BV acquires decisive control over the companies concerned until the moment this control is terminated. Transactions between companies that are consolidated are eliminated.
96 The company owns 100% of the shares in the following participations: RAI Amsterdam BV and Arfora BV, Amsterdam.
These group companies include the results of the following indirect participations (100%): RAI Solar Energy BV, Amsterdam; RAI USA, Inc., Delaware; Rui Ang Exhibition and Convention Co., Ltd., Shanghai; RAI TURKEY ULUSLARARASI FUARCILIK VE GOSTERI HIZMETLERI ITHALAT IHRACAT TICARET LIMITED SIRKETI, Istanbul. The company in Turkey was established in 2016. The results of the indirect participation (50%) in IBEX LLC, Maine USA are also included.
Amsterdam RAI Catering BV was liquidated on 12 July 2018. The entity did not realise any turnover or costs in recent years. The assets and liabilities of Amsterdam RAI Catering BV were nil.
Functional currency
The items in the annual accounts of the group companies are valued in accordance with the currency of the economic environment in which the group company mainly performs its activities (the functional currency). The consolidated annual accounts were drawn up in euros; the functional and presentation currency of RAI Holding BV.
Transactions, receivables and liabilities
Transactions in foreign currencies are converted at the exchange rates at the time of the transaction.
Monetary assets and liabilities are converted into the functional currency at the exchange rates on the balance sheet date. The resulting exchange differences are included in the profit and loss account, unless hedge accounting is applied.
Non-monetary assets that are valued in a foreign currency at acquisition cost are converted at the exchange rates valid at the time of transaction
Non-monetary assets valued in a foreign currency at the current value are converted at the exchange rates which applied at the time the current value was determined.
Conversion differences in long-term inter-group loans which are actually an expansion or reduction of the net investment of foreign participations will be credited or charged directly to the equity in the statutory translation differences reserve.
If loans were entered into in a foreign currency to finance or cover the net investment in a foreign participation, the exchange differences that result from the loan will be processed in the statutory conversion differences reserve insofar as the loan is effective as coverage for the exchange differences on the net investment in the foreign participation.
The assets and liabilities of the participations included in the consolidation at a functional currency that is different than the presentation currency will be converted at the exchange rates on the balance sheet date. The profits and losses are converted at the exchange rates at the time of transaction.
The resulting conversion differences will be credited or charged directly to the equity in the statutory conversion differences reserve.
97 Use of estimates
In order to help determine the included figures when drawing up the annual accounts, the management of RAI Holding BV makes certain estimates and suppositions in accordance with the generally accepted principles of financial reporting. The factual results can deviate from these estimates.
The estimates and underlying suppositions are regularly evaluated. Revisions of estimates are recorded in the period in which the estimate is revised and in future periods affected by the revision.
Financial tools
Financial tools include both primary financial tools such as receivables or debts, and financial derivatives. Please see the description per balance sheet item for the principles of the primary financial tools.
RAI Holding BV applies hedge accounting based on documentation for each individual hedge relation, and documents how the hedge relations fit in with the goals of the risk management, hedge strategy and expectations regarding the effectiveness of the hedge.
The effective part of the financial derivatives assigned to cost-price hedge-accounting is valuated at cost value while the ineffective part is valuated at fair value. The valuation changes of the fair value of the ineffective part are immediately processed in the profit and loss account.
Principles for the valuation of assets and liabilities
The assets and liabilities are valued at nominal value unless the notes for the individual items indicate otherwise.
Intangible fixed assets Externally obtained exhibition titles are valued at cost price or market value if lower, and are depreciated over their economic life, which is assumed to be 20 years at most.
The economic life of the IBEX exhibition title is assumed to be 15 years at most.
Software is valued at historic cost and is depreciated over its economic life, which is assumed to be ten years at most. Operating rights are valued at acquisition price and depreciated annually based on the term of these rights.
Tangible fixed assets Tangible fixed assets are valued at their acquisition price, minus straight-line depreciation based on their economic life and minus any special depreciation.
Maintenance costs for buildings owned are immediately charged to the results, or entered as assets and depreciated if the asset criteria allow. The depreciation calculation takes the residual value into account, which is expected to be nil in all cases.
98 Financial fixed assets Participating interests over which significant control is exercised over business and financial policy are stated at their net asset value determined on the basis of the accounting principles of RAI Holding BV. Participating interests over which no significant control is exercised are stated at the acquisition price or current value if lower. Receivables from and loans to participating interests as well as other receivables are stated at the fair value in the initial processing, and then valued at the amortised cost minus the necessary provisions.
Special depreciation of fixed assets An evaluation is made each year to check for any indications that intangible, tangible or financial fixed assets are subject to special depreciation. Special depreciations apply when the balance sheet value of the asset is higher than the realisable value. In such cases the relevant asset is devalued to the realisable value. The loss is immediately processed as an expense in the profit and loss accounts.
Receivables Receivables are stated at the fair value in the initial processing, then valued at the amortised cost, which is the same as the nominal value minus any provisions for doubtful debts. These provisions are determined based on an individual assessment of the receivables.
The receivables have an expected term of up to one year, unless stated otherwise.
Stock The stock mainly involves food & beverage products of which the valuation is determined at acquisition costs, minus a provision for obsolescence where necessary.
Securities Securities are stated at their cost or market value on the balance sheet date, whichever is the lower. The market value is in principle equal to the value quoted on the stock exchange. If a sale is expected in the short term, the directly realisable value is considered the market value.
Liquidities Liquidities are at the disposal of the company.
Provisions
Provisions are included for all rightful enforceable or factual obligations resulting from an event before the balance sheet date, which are expected to require an export of capital for the fulfilment thereof and of which the scope can be reliably estimated.
A provision for long-service payments is included based on the valid long-service scheme per balance sheet date, taking into account the likelihood of continued employment, future labour cost developments and discount provisions.
A provision is included for bonus schemes and participations based on relevant performance schemes. This provision is included under current liabilities.
99 Pension scheme The company has two active pension schemes for its employees. Those who started working for the company before 1 January 2013 are subject to a pension provision that qualifies as a defined benefit plan, in which the defined pension payments are based on average pay. This pension scheme has been placed with a pension insurer, and is processed in the financial statement as a defined contribution scheme due to the fact that the obligations for realising this pension scheme are entirely reinsured.
Employees who started working for the company since 1 January 2013 or those who have voluntarily switched to the new pension scheme are subject to a premium scheme with the nature of a defined contribution agreement in which the company obligations are limited to making an annual contribution to the insurance company. Future payable contributions will partly depend on the development of the employment conditions and the returns on the invested contributions achieved by the insurer.
Long-term liabilities Long-term liabilities include debts with a remaining term of over one year. These debts are stated at the fair value in the first processing, and then valued at the amortised cost.
Current liabilities Current liabilities are stated at their fair value in the first processing and then at the amortised costs. They have an expected term of less than one year. A provision is included for bonus schemes and participations based on relevant performance schemes. There is also a provision included for contractual agreements with employees.
(Deferred) corporation tax Temporary differences between the determination of profit for commercial and tax purposes are stated at their nominal value in the balance sheet as a tax deferral or asset. Deferred claims for corporation tax on account of tax-deductible losses are valued at the future tax rate on the balance sheet date in so far as it can reasonably be expected that the claims are realisable.
RAI Holding BV is the leading company of a group that is treated as a single entity for tax purposes. The other members of the group are: RAI Amsterdam BV, RAI Solar Energy BV and Arfora BV.
Principles for determination of results
Revenue
The financial statements have been prepared on the basis of historical cost. The revenue recognition applies to all categories as specified under 2.1.1. The net turnover includes revenue from the delivery of goods and services as specified under 2.1.1, minus discounts and the like and turnover tax. Revenue and expenses are accounted for in the period during which the activity is performed. For exhibitions and events this is the period in which the event takes place. Profits are accounted for in that period. Losses and risks that originated before the end of the financial year are processed if and insofar as they became known before the annual accounts were drawn up.
The revenue and expenses for participations in which the RAI plays a deciding role are consolidated proportionally. For participations in which the RAI does not play a deciding role, the result attributable to RAI Holding BV is included.
100 Costs of outsourced work The costs for outsourced work and other external costs involve direct and indirect costs, including purchasing costs of sold catering stock that can be attributed to the turnover.
Depreciation The depreciation on tangible fixed assets is calculated on a linear basis by reference to the expected economic life.
The applied depreciation rates are between 2% and 20%. The depreciation of the intangible fixed assets is related to the acquisition value, and ranges between 5% and 20%. Possible residual values of tangible and/or intangible fixed assets are not taken into account.
Financial revenue and expenditure The financial revenue and expenditure involve the exchange rate differences, interest revenue and costs attributable to the period concerned.
Participating interest results The participating interest results concern the share of the company in the results of the net asset value of the participating interests. The share that the company is due is stated as the result of a specific participating interest in the participating interest results.
Corporation tax The corporation tax is calculated on the commercial pre-tax profit, taking into account tax facilities. The mutation in the provision for deferred corporation tax is taken into account in the calculations.
A continuous evaluation is made as to whether the financial reporting should or could be adapted in the framework of new fiscal legislation.
Cash flow statement The cash flow statement has been drawn up in accordance with the indirect method. The resources in the cash flow statement consist of liquidities.
101 Notes on the consolidated balance sheet as on 31 December 2019
1.1.1. Intangible fixed assets
Intangible fixed assets Amounts x € 1,000
Exhibition Software Other Work in Total titles progress
Cost as on 1-1-2019 6,462 8,887 1,684 1,174 18,207 Finished work in progress - 810 - -810 - Acquisitions - 703 - 1,293 1,996 Translation differences 118 - - - 118 Divestments - - - - - Cost as at 31-12-2019 6,580 10,400 1,684 1,657 20,321
Depreciation and amortisation as on 1-1-2019 1,381 7,038 1,281 - 9,700 Depreciation 400 974 53 - 1,427 Translation differences 20 - - - 20 Divestments - - - - - Depreciation and amortisation as on 31-12-2019 1,801 8,012 1,334 - 11,147
Book value as on 1-1-2019 5,081 1,849 403 1,174 8,507
Book value as on 31-12-2019 4,779 2,388 350 1,657 9,174
Investments in exhibition titles are depreciated over a maximum period of 20 years. An impairment test on titles that were externally acquired in the past is performed annually. Software is depreciated over a period of ten years at most, calculated from the time it is first used.
The ‘other’ category primarily concerns the use of a lounge in the Johan Cruijff ArenA. These rights will be depreciated until the year 2026. Divestments are related to assets that are no longer used. The work in progress concerns investments in software for projects that has not yet been taken into use.
102 1.1.2. Tangible fixed assets
Tangible fixed assets Amounts x € 1,000
Buildings, Inventory Work in Total installations progress and land
Cost as on 1-1-2019 339,355 28,984 14,589 382,928 Investments 3,001 1,199 18,557 22,757 Finished work in progress 9,171 592 -9,763 - Divestments -1,830 -93 -5 -1,928 Cost as on 31-12-2019 349,697 30,682 23,378 403,757
Depreciation and amortisation as on 1-1-2019 191,348 24,769 - 216,117 Depreciation 9,318 2,114 96 11,528 Divestments -1,143 -93 - -1,236 Depreciation and amortisation as on 31-12-2019 199,523 26,790 96 226,409
Book value as on 1-1-2019 148,007 4,215 14,589 166,811
Book value as on 31-12-2019 150,174 3,892 23,282 177,348
Buildings and land are depreciated over a period of 5 to 50 years, the Convention Centre over a period of 20 years, and installations over a period of 10 to 20 years. The other fixed assets are depreciated over a period of five to 20 years.
In 2017 the RAI renewed its long-term land lease retroactively from 1 November 2016. The paid land lease until 2066 amounts to € 3,091,425 (2018: € 3,157,434). Divestments are related to fixed assets that are no longer used. The paid land lease is depreciated over the entire canon period until 2066.
1.1.3. Financial fixed assets
Financial fixed assets Amounts x € 1,000
Total
Balance as on 1-1-2019 1,134 Other changes -
Balance as on 31-12-2019 1,134
The financial fixed assets refer to a capital interest in Stadion Amsterdam CV of 1/9 share of the limited capital. The valuation of this capital interest is valued at the acquisition price or current value if lower.
103 1.1.4. Current assets, receivables
Current assets, receivables Amounts x € 1,000
2019 2018
Trade receivables 19,931 17,567 Allowance for doubtful debts -1,917 -1,707 18,014 15,860 Other receivables 4,458 5,762 Receivables from shareholders - - Accrued assets 7,916 6,165
30,388 27,787
The trade receivables include, among other items, receivables for future events to an amount of € 9,416,875 (2018: € 7,657,252).
The other receivables include, among other items, yet to be billed invoices to an amount of € 2,517,309 (2018: € 2,814,695).
The accrued assets include, among other items, costs paid in advance to the amount of € 730,365 (2018: € 898,059) and paid personnel costs for future exhibitions to an amount of € 6,514,529 (2018: € 5,286,222).
1.1.5. Shareholder equity
For an explanation of the mutations in the shareholder equity in 2019 and 2018 see the notes on the company annual accounts of RAI Holding BV (see 4.1.2.).
1.1.6. Provisions
Provisions Amounts x € 1,000
Deferred Other Total taxes
Balance as on 1-1-2019 161 1,305 1,466 Allocation - 552 552 Withdrawal -161 -460 -621
Balance as on 31-12-2019 - 1,397 1,397
The passive deferred tax consists of the differences between commercial and tax-based valuation.
104 The other provisions mainly involve a provision for long-service payments and other personnel-related provisions. The above provisions are primarily of a long-term nature.
1.1.7. Long-term liabilities
Long-term liabilities Amounts x € 1,000
2019 2018
Loans Deutsche Bank AG 20,000 22,000 Loan Coöperatieve Rabobank Amsterdam U.A. 20,000 22,000 Loan Triodos Bank 209 224 Loan Klimaatfonds Amsterdam 100 100 Other liabilities 6,896 7,099
47,205 51,423
Overview long-term loans Per 31 December 2018, amounts x € 1,000
Principle Payment in Amount book year remaining
Loan Deutsche Bank AG 24,000 2,000 22,000 Loan Coöperatieve Rabobank Amsterdam U.A. 24,000 2,000 22,000 Loan Triodos Bank 239 18 221 Loan Klimaatfonds Amsterdam 100 - 100 Other liabilities 7,877 200 7,677
56,216 4,218 51,998 Minus short-term part of long-term liabilities 4,793 4,793
51,423 47,205
In 2013 the RAI entered into a credit agreement with Deutsche Bank AG and Coöperatieve Rabobank Amsterdam U.A. This credit agreement comprises an overdraft facility of € 30 million as well as two loans totalling € 48 million (50% Deutsche Bank AG and 50%
Coöperatieve Rabobank Amsterdam U.A.) until 2020.
In 2016 the RAI established an additional credit facility with Deutsche Bank AG and Coöperatieve Rabobank Amsterdam U.A., consisting of a current account of US$ 6.7 million at Coöperatieve Rabobank Amsterdam U.A. As part of this agreement, it was agreed that the current account of Coöperatieve Rabobank Amsterdam U.A. is reduced by € 3 million and the current account of Deutsche Bank AG is increased by € 3 million. This way both banks are a 50% credit provider. The current account of US$ runs until 2020 and is reduced every six months by US$ 831,250 as of 1 July 2018.
The rate of interest on the loans is Euribor + 1.70%.
In 2013 the RAI entered into an interest swap agreement, based on which RAI Holding BV pays an interest rate of 1.54% over an amount of € 36 million.
105 The business premises at Europaplein have been mortgaged as security for the repayment of the long-term debts and overdraft facility.
A credit agreement with the Triodos Bank for the financing of solar panels was concluded in 2014. It consists of a loan of € 0.29 million for the period until 1 January 2034. The loan is being repaid in 79 quarterly terms, starting 1 July 2014. The interest rate is 3.5% on an annual basis for the period until 17 January 2026.
A credit agreement to finance solar panels was concluded with the Amsterdam Investment Fund of the Municipality of Amsterdam in 2014. It consists of a loan of € 0.1 million for the period until 5 March 2029. The loan will be repaid at the latest by 5 March 2029 and the interest rate is 0%.
The other long-term liabilities concern a lump-sum payment received in 1988 from the Municipality of Amsterdam for the operating losses of the Convention Centre in the period until 2038. This lump-sum payment was acquired in the past for an interest of 7.46%. This lump-sum payment is mainly of a long-term nature. The release benefits the operational costs. The annual interest increase is at the expense of the financial revenue and expenditure.
Of the long-term liabilities, a total of € 6.5 million has a term of over five years.
1.1.8. Current liabilities
Current liabilities Amounts x € 1,000
2019 2018
Bank overdrafts 12,829 4,604 Short-term part of long-term liabilities 4,793 4,793 Advance payments 26,557 22,380 Debts to suppliers 7,682 5,219 7,549 - Corporation tax 928 1,724 Other taxes and social security contributions -28 1,523 Accruals and deferred income 18,479 19,459
78,789 59,702
The accrued liabilities largely consist of receivable invoices for incurred costs of € 11,802,637 (2018: € 12,933,134) and accrued liabilities related to personnel to an amount of € 4,083,986 (2018: € 4,806,567).
106 Off-balance sheet information
1. In 2017 an agreement was reached between COD/Being Development and the RAI for a rental contract for the parking garage of the nhow Hotel. The rental contract will start as soon as the parking garage is delivered in 2020 and has a term of 20 years. The initial rental cost is € 650,000 a year and it will be indexed annually. The total contractual obligation is € 13 million. Based on the delivery of the parking garage on 1 January 2020 an amount of € 650,000 is due within one year, and an amount of € 3,250,000 within 5 years. The remainder involves the period 2025 to 2039.
2. There were bank guarantees issued to an amount of € 219,975 (2018: none).
3. There are operational lease commitments for 33 (2018: 36) cars. At the end of the financial year the contractual commitments totalled € 392,492 (2018: € 602,540), of which € 238,042 is due within one year. The remainder is due within 5 years.
4. A total of € 567,498 (2018: € 582,592) in lease payments was made in 2019. In 2017 an agreement was reached with the Land Lease and Land Issuance and Development department of the Municipality of Amsterdam on an advanced change of the long- term land lease agreement. The new agreement has a term of 50 years until 30 October 2066. The available part of the capitalised acquired long-term land lease as of 1 November 2016 will be depreciated over the new term of 50 years. The total liability for long-term land lease (until 2066) is € 12,745,860 of which an amount of € 272,154 is due within one year, and an amount of € 1,360,768 is due within 5 years. The remainder involves the period 2024 to 2066. The amounts due are indexed annually.
5. RAI Holding BV is the leading company of a group that is treated as a single entity for corporation and turnover tax purposes. The other members of the group are RAI Amsterdam BV, RAI Solar Energy BV and Arfora BV. Each company is severally liable for the liabilities of the fiscal entity.
Financial tools
The risks associated with the financial tools are clarified below.
Credit risk Exposure is constantly monitored and acted upon in order to manage the credit risk. There was no major concentration of credit risks at the end of the financial year. Credit risks relate to debtors and other short-term receivables. Sufficient provisions were included accordingly.
Currency risk There are no substantial currency risks as the operational cash flows and financing activities mainly take place in euros.
There is an overdraft facility agreement with Coöperatieve Rabobank Amsterdam U.A. to a maximum amount of US$ 6.7 million for which the company faces a currency risk.
107 Interest risk Interest risks mainly concern long-term loans. RAI Amsterdam BV has interest rate swap contracts to cover interest risks. In order to fix the interest rates, interest rate swaps amounting to € 36 million at the end of 2019 were concluded in 2013 for the period until 2020. RAI Amsterdam BV pays an interest rate of 1.54% on the interest swap with Deutsche Bank AG/Coöperatieve Rabobank Amsterdam U.A. A variable interest rate of three months Euribor plus an individual surcharge is paid on the bank overdrafts. The amounts covered by the interest swaps are smaller than or equal to the outstanding principle of the loans from Deutsche Bank AG/Coöperatieve Rabobank Amsterdam U.A. On 31 December 2019, the interest swaps had a fair value of minus € 515,496 (2018: minus € 1,180,692). The nominal value will be reduced to zero over the remaining interest swap period (until 2020).
108 Notes on the consolidated profit and loss accounts 2019
2.1.1. Turnover
Turnover Amounts x € 1,000
2019 2018
By geographical area
The Netherlands 130,904 147,572 Other countries 4,534 4,763
135,438 152,335
By activity
Letting to third parties 27,966 29,473 Exhibition events 29,790 39,909 Catering 19,053 20,864 Hotel commissions 2,275 3,432 Parking 7,028 6,554 Facility Services 17,126 19,603 Interior 16,397 17,781 Building-related letting 9,723 11,239 Other 6,080 3,480
135,438 152,335
109 2.1.2. Costs of outsourced work and other external costs
Costs of outsourced work and other external costs Amounts x € 1,000
2019 2018
Accommodation 4,302 4,091 Catering 9,592 9,922 Outsourcing costs 12,606 14,039 Marketing costs 2,262 2,223 Organisation costs 1,384 2,007 Safety & security costs 3,543 4,018 Facility 17,295 19,919 Other 4,122 4,503
55,106 60,722
2.1.3. Personnel costs
The salary (including benefits) paid to Board members (2) in 2019 totalled € 770,720 (in 2018: € 749,173).
The salary paid to Supervisory Board members (4) amounted to € 105,886 (in 2018: € 99,744 (4)).
Average number of employees In FTE, working for the group
2019 2018
In the Netherlands 386 383 3 -
389 383
Personnel, by discipline Percentage / FTE (balance at the end of the year)
2019 2018
BY DISCIPLINE
Commercial 48% 48% Operational 38% 39% Financial/management 14% 13% Total 100% 100%
110 2.1.4. Depreciation on intangible and tangible fixed assets
The depreciation on intangible and tangible fixed assets consists of € 12.9 million in regular depreciations and € 0.7 million in book losses on divested tangible fixed assets.
2.1.5. Other operational costs
Other operational costs Amounts x € 1,000
2019 2018
Consultancy costs 2,005 1,387 Automation costs 4,170 4,443 Agency costs 1,165 1,472 Building and accommodation 6,557 6,099 Marketing 1,049 1,660 Other costs -8 2,581 Maintenance 4,458 4,452 Temporary personnel 2,700 3,500 Other personnel costs 2,158 2,895 Travel and representation costs 416 534
24,670 29,023
Auditors’ costs In accordance with Article 382a Book 2 of the Netherlands Civil Code, an amount of € 167,205 (2018: € 125,000) is due to Deloitte Accountants BV in the book year, of which € 145,000 (2018: € 125,000) relates to the annual audit and € 22,205 to other audit assignments.
2.1.6. Interest revenue and expenses and similar
Interest revenu and costs and similar Amounts x € 1,000
2019 2018
Interest proceeds and similar - - Interest costs and similar -2,311 -2,524
Interest costs and similar in the profit and loss -2,311 -2,524 account
The interest costs and similar consist of € 2,253,943 in owed interest and € 57,017 in costs from exchange results and similar results.
111 2.1.7. Taxes
Taxes Amounts x € 1,000
2019 2018
Deferred corporation tax -20 Acute corporation tax for current book year 2,928 3,115 Corporation tax for previous years - -
Tax charged in the profit and loss account 2,928 3,096
The effective taxation rate over 2019 is 43.1% (2018: 25.3%) which is above the generally applicable tax rate in the Netherlands. The reason for the difference is the implementation of the WOZ write-off restriction for buildings in own use as of 1 January 2019.
112 4.1. Company balance sheet (before appropriation of results)
Company balance sheet Before appropriation of results, amounts x € 1,000
ASSETS ref. 2019 2018
Fixed assets
Financial fixed assets 4.1.1. 93,995 90,380
Receivables from group companies 4.1.3. 5,432 7,964 99,427 98,344
LIABILITIES
Shareholder equity 4.1.2.
Issued capital 2,730 2,730 Share premium 22,006 22,006 Statutory translation reserve -209 -262 Other reserves 63,789 63,789 Unappropriated profit 3,562 9,905 91,878 98,168
Debts 7,549 Debts to credit institutions - 176 Debts to group companies 4.1.3. - -
99,427 98,344
113 5.1. Company profit and loss account
Company profit and loss account Amounts x € 1,000
2019 2018
Company result after taxes 0 - Result from participating interests after taxes 3,562 9,905
Net result 3,562 9,905
The company profit and loss account has been drawn up in accordance with Article 402 of Book 2 of the Netherlands Civil Code.
The financial data of RAI Holding BV is included in the consolidated annual account. As a result, the profit and loss account of RAI Holding BV only states the share in profits after taxation of participating interests and the other result after taxes, in accordance with Article 402 of Book 9 of the Netherlands Civil Code.
114 Notes on the company balance sheet as on 31 December 2019
4.1.1. Financial fixed assets
Financial fixed assets Amounts x € 1,000
Participation in group companies
Balance as on 1-1-2019 90,380 Statutory translation reserve 53 Other changes - Result 3,562
Balance as on 31-12-2019 93,995
The company owns 100 percent (unless otherwise stated) of the shares in the following major participations: RAI Amsterdam BV and Arfora BV, Amsterdam.
The results of these group companies include those of the following indirect participations (100%): RAI Solar Energy BV, Amsterdam; RAI USA, Inc., Delaware; Rui Ang Exhibition and Convention Co., Ltd., Shanghai and RAI TURKEY ULUSLARARASI FUARCILIK VE GOSTERI HIZMETLERI ITHALAT IHRACAT TICARET LIMITED SIRKETI, Istanbul.
115 4.1.2. Shareholder equity
Shareholder equity Amounts x € 1,000
Share Share Statutory Other Unapprop. Total capital premium exchange reserves profit reserve
Balance as on 01-01-2017 2,730 22,006 -397 60,834 5,271 90,444 Appropriation of result - - - 5,271 -5,271 - Statutory translation reserve - - 135 - - 135 Result book year - - - - 9,905 9,905 Dividend - - - -2,316 - -2,316
Balance as on 12-12-2017 2,730 22,006 -262 63,789 9,905 98,168
Balance as on 01-01-2018 2,730 22,006 -262 63,789 9,905 98,168 Correction opening balance - - - 9,905 -9,905 - Result appropriation - - 53 - - 53 Statutory translation reserve - - - - 3,562 3,562 Result book year - - - -9,905 - -9,905 Dividend 2,730 22,006 -209 63,789 3,562 91,878
The authorised capital is € 13,650,000, divided into 225,000 ordinary ‘A’ shares and 75,000 ordinary ‘B’ shares, each having a nominal value of € 45.50. Of these, 45,000 ‘A’ shares and 15,000 ‘B’ shares have been issued and fully paid up.
116 4.1.3. Receivables from group companies
Receivables from group companies Amounts x € 1,000
Debts to group companies
Balance as on 1-1-2019 7,964 Dividend payment -2,356 Dividend - Other changes -176
Balance as on 31-12-2019 5,432
The determined dividend is paid via the subsidiary RAI Amsterdam BV to the shareholders and charged to RAI Holding via a current account relationship. No interest applies to receivables from group companies.
Personnel
As was the case in 2018, the company did not employ any staff in 2019.
Off-balance sheet information
Letters of liability in accordance with Article 403 of Book 2 of the Netherlands Civil Code have been issued and deposited for the participating interests in RAI Amsterdam BV and RAI Solar Energy BV.
Amsterdam, 13 May 2020
Executive Board of RAI Holding BV
P. (Paul) Riemens, CEO
M. (Maurits) van der Sluis, COO
Supervisory Board of RAI Holding BV
A.M.H. (Annemarie) Macnack-van Gaal, chair J.W.Th. (John) van der Steen, vice-chair W.C.M. (Mariëlle) de Macker
117 Proposed appropriation of profit
Proposed appropriation of profit
The result after tax over 2019 is included in the unappropriated profit item under shareholder equity. In view of the economic developments and their major impact on the RAI, it was proposed to the general meeting of shareholders pay no dividend and add the result after tax to the ‘Other reserves’ item in the shareholder equity.
118 Events after the balance sheet date
On the publication date of this report, the world and the RAI are in the grip of the COVID-19 coronavirus. The first patients of the virus were hospitalised in China in December 2019 and the impact for us all gradually became clear in the following months.
The RAI started taking measures to safeguard the wellbeing and safety of stakeholders at events in late January, long before the virus was discovered in the Netherlands. This was realised under the coordination and supervision of the crisis team in consultation with our clients. Nonetheless, the impact of coronavirus on the operational management of the RAI due to government restrictions, travel limitations and other developments, swiftly became tangible.
The measures implemented globally in March 2020 to limit the spread of the virus, including in the Netherlands, have been unprecedented. In light of the declared pandemic and based on the advice of the National Institute for Public Health and the Environment (RIVM), the Dutch government decided on Thursday 12 March 2020 to cancel all events with over 100 people until the first week of April 2020. The RAI immediately complied. On Monday 23 March, the Dutch government extended this measure, banning events until Monday 1 June, regardless of the number of participants. In consultation with its clients, the RAI postponed events wherever possible to a different time in the second half of 2020 and even to 2021.
The reality of the developments related to coronavirus is that nobody knows what will happen next. The policy in the Netherlands is mainly aimed at spreading the number of cases over a longer period. The goal is to ensure that health care facilities in the Netherlands remain able to cope and care for patients. Measures taken by the government can change significantly within a matter of days.
The Dutch government has announced that it aims to limit the economic consequences of the crisis as much as possible, and has established a number of support measures in this framework. Wherever they apply to the RAI, we have asked to participate in these schemes. What these schemes will mean in concrete terms for the RAI is not yet known. In response to all these developments, the RAI has maximised its focus on savings and liquidity while postponing all non-essential investments.
Historically, the RAI is a healthy company with a (usually) well-filled order portfolio and the ability to be reasonably flexible in terms of costs and investments. Nonetheless, the cancellation of a substantial part of the 2020 turnover is obviously having a significant impact. When the RAI processes this loss in turnover in its prognosis for 2020, the result shows that the solvency will be sufficient to ensure continuity. Whether the loss in turnover will limit itself to what is assumed now will depend on further economic developments.
In April 2020, the RAI agreed to a renewed financing scheme with the banks that concluded the refinancing process. This refinancing contributes to the liquidity level that the RAI needs in the coming months.
119 #06 Other information
• Result appropriation in accordance with the statutes • Reference to the audit statement by the independent accountant
120 Result appropriation in accordance with the statutes
Article 24 of the company statutes states the following regarding the appropriation of profit.
1. In addition to several other reserves, the company can keep a general reserve, a share premium reserve A, a share premium reserve B, a dividend reserve A, and a dividend reserve B in its books. The respective rights to these reserves go to owners of shares A and shares B, pro rata to the number and type of shares they own. 2. Payments to shares A and shares B that exceed the nominal value of those shares are added to the share premium reserve concerned. 3. Without prejudice to that determined elsewhere in this article, the distributable profit is freely at the disposal of the general meeting for the payment of dividend, reservations or other such purposes within the company’s goal as determined by the general meeting. 4. The general meeting can determine, with the prior approval of the owners of shares of the type concerned, to not pay profit on those shares but to reserve that part of the profit and add it to the dividend reserve A or B respectively. Payment against dividend reserve A or B respectively can only be made to the owners of the type of shares concerned if the general meeting determines as such after prior approval by a meeting of those owners. 5. Without prejudice to that determined elsewhere in this article, if the general meeting decides to reserve profit or pay dividend on all shares regardless of the type, equal amounts of the profit will be reserved or paid as dividend. 6. The company can only make payments to shareholders and other parties that have a right to the payable profits insofar as the shareholder capital is larger than the paid and requested part of the capital increased by the reserves that must be applied in accordance with the law or statutes. The shares kept in the capital of the company are not included in the calculation of the appropriation of profit. 7. Appropriation of profit will occur after the determination and approval of the annual accounts which show that payment is permissible. 8. The general meeting is authorised to determine payments on one or multiple interim dividends, with due regard to point seven. 9. Unless the general meeting determines another date, dividends are payable immediately after determination. 10. The right to claim for payment of dividend lapses after a period of five years.
121 Reference to the audit statement by the independent accountant
To: the shareholders and Supervisory Board of RAI Holding B.V.
RAI Holding B.V. prepares its annual Financial Statements in the Dutch language. In order to be able to distribute the Financial Statements to international stakeholders, management has decided to prepare an exact translation into the English language of the 2019 Financial Statements.
The 2019 Financial Statements as prepared by management, were finalized and approved by the Supervisory Board of RAI Holding B.V. on 13 May 2020. On that same date, Deloitte Accountants B.V. issued an unqualified independent auditor’s report on these financial statements.
Amsterdam, 13 May 2020
Deloitte Accountants B.V.
F.E. Mijinke
122 123 #07 About this report
• Stakeholder dialogue, materiality and reporting • GRI table
126 Stakeholder dialogue, materiality and reporting
RAI Amsterdam has periodic meetings with its stakeholders to gain insight into which issues are important for them. The overview below shows how and how often RAI Amsterdam has these structural dialogues.
Dialogue with stakeholders Stakeholder group Dialogue type Frequency Topic
Internal stakeholders, shareholders, clients, Extensive stakeholder 1x approx. every Policy review suppliers consultation 3 years 2016 Clients Surveys After event Client satisfaction Visitors Social media Continuous Activities related to the RAI, reachability Neighbourhood residents Programming meeting 8-10x a year Activities in and around the RAI Suppliers Inspiration and feedback Regularly Sustainable procurement, sessions realisation of activities and work environment Employees Employee satisfaction survey 1x every 2 years Employee satisfaction Transport companies (e.g., NS, GVB) Meeting Regularly Reachability RAI around events
An extensive stakeholder consultation and materiality determination process took place in 2016. The scope was corporate social responsibility and three stages were involved: stakeholder mapping, stakeholder consultation (internal and external interviews and surveys), and analysis and reporting.
CSR themes
The most common topics named by the stakeholders were waste and energy, employees, sustainable procurement, mobility, social engagement and security. Another topic mentioned involved event content – which was deemed to be very important by internal stakeholders. As the aforementioned topics are the most material, they form the foundation for the CSR reporting which has been integrated within the financial report starting with the 2017 Annual Report.
Materiality
The figure below illustrates the relative importance according to the stakeholders and to RAI Amsterdam.
125 Reporting
This report was drawn up in accordance with the guidelines version 4.0 (G4) of the Global Reporting Initiative – application level ‘core’. The GRI guidelines are available via www.globalreporting.org.
126 GRI table
Part 1 GRI code GRI G4 Information directives Clarification Pag.
Strategy and analysis G4-1 Statement from the Executive Board about the relevance of https://annualreport2019.rai.nl/welcome-to-the-rai/strategy- 10 sustainability to the organisation and its strategy and-value-creation
Organisation profile G4-3 Name of the organisation RAI Amsterdam B.V. G4-4 Primary brands, products, and/or services and events https://annualreport2019.rai.nl/welcome-to-the-rai/profile 7 G4-5 Location of the organisation’s headquarters RAI Amsterdam Europaplein ML 1078 GZ Amsterdam G4-6 Number of countries where the organisation operates (as RAI Amsterdam is active within several countries. relevant to sustainability issues) G4-7 Nature of ownership and legal form https://annualreport2019.rai.nl/welcome-to-the-rai/profile 7 G4-8 Markets served (including geographic breakdown, sectors https://annualreport2019.rai.nl/welcome-to-the-rai/profile 7 served, and types of customers) G4-9 Scale of the reporting organisation https://annualreport2019.rai.nl/welcome-to-the-rai/profile 7 https://annualreport2019.rai.nl/welcome-to-the-rai/key- 19 figures G4-10 Details of workforce by type of work, work agreement and https://annualreport2019.rai.nl/executive-board-report/for- 58 region employees G4-11 Percentage of total employees covered by collective RAI Amsterdam has its own work conditions package and is bargaining agreements not covered by a collective labour agreement. G4-12 Description of the supply chain - G4-13 Significant changes during the reporting period regarding No significant changes to size, structure or ownership have size, structure or ownership occurred during the period under review. G4-14 Whether and how the precautionary approach or principle is - addressed by the organisation
G4-15 Externally developed economic, environmental and social https://annualreport2019.rai.nl/executive-board-report/for- 44 charters, principles, or other initiatives to which the community-city-and-society organisation subscribes G4-16 Membership in associations Not included G4-17 A list of all entities included in the organisation’s https://annualreport2019.rai.nl/governance-and-risk- 91 consolidated financial statements management G4-18 Process for defining report content https://annualreport2019.rai.nl/about-this- 127 report/stakeholder-dialogue-materiality-and-reporting G4-19 Material aspects https://annualreport2019.rai.nl/about-this- 128 report/stakeholder-dialogue-materiality-and-reporting G4-20 Report the Aspect Boundary within the organisation https://annualreport2019.rai.nl/about-this- 129 report/stakeholder-dialogue-materiality-and-reporting G4-21 Report the Aspect Boundary outside the organisation https://annualreport2019.rai.nl/about-this- 130 report/stakeholder-dialogue-materiality-and-reporting G4-22 The effect of any restatements of information provided in n/a previous reports G4-23 Significant changes from previous reporting periods n/a G4-24 Stakeholder groups engaged by the organisation https://annualreport2019.rai.nl/about-this- 130 report/stakeholder-dialogue-materiality-and-reporting G4-25 Basis for identification and selection of stakeholders https://annualreport2019.rai.nl/about-this- 130 report/stakeholder-dialogue-materiality-and-reporting
127 GRI code GRI G4 Information directives Clarification Pag.
G4-26 Approach to stakeholder engagement, including the https://annualreport2019.rai.nl/about-this- 130 frequency of contacts per type and group of stakeholders report/stakeholder-dialogue-materiality-and-reporting G4-27 Key topics and concerns that have been raised through - stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting.
Report profile G4-28 Reporting period for information provided 1 January – 31 December 2019 G4-29 Date of most recent previous report April 2019 G4-30 Reporting cycle Annual G4-31 Contact point for questions regarding the report or its Corporate Communication Department via [email protected] contents
GRI table of contents G4-32 The ‘in accordance’ option chosen Core G4-33 Policy and current practice with regard to involving external RAI Amsterdam has not had the sustainability report assurance for the report verified externally by an accountant
Governance, commitments and engagement G4-34 Governance structure of the organisation, including https://annualreport2019.rai.nl/welcome-to-the- 22 committees under the highest governance body rai/composition-of-the-supervisory-board https://annualreport2019.rai.nl/welcome-to-the- 23 rai/composition-of-the-executive-board G4-35 Process for delegating authority for economic, https://annualreport2019.rai.nl/about-this- 127 environmental and social topics report/stakeholder-dialogue-materiality-and-reporting G4-36 Executive roles/positions for economic, environmental and https://annualreport2019.rai.nl/about-this- 127 social topics report/stakeholder-dialogue-materiality-and-reporting G4-37 Mechanisms which give shareholders and employees the https://annualreport2019.rai.nl/about-this- 127 opportunity to make recommendations or exercise joint report/stakeholder-dialogue-materiality-and-reporting authority with the highest governance body on economic, environmental and social topics G4-38 The number of members of the highest governance body 0 who are independent and/or non-executive members G4-39 Chair of the highest governance body CEO G4-41 Processes in place for the highest governance body to https://annualreport2019.rai.nl/governance-and-risk- 77 ensure conflicts of interest are avoided management/corporate-governance G4-42 Role of the highest governance body in the development, Final approval is given by the Executive Board. The Board approval and updating of the mission, vision, goals and is supported in this by the CSR Board. strategy related to economic, environmental and social topics G4-43 Measures taken to enhance the highest governance body’s - collective knowledge of economic, environmental and social topics G4-44 Processes for evaluation of the highest governance body’s https://annualreport2019.rai.nl/governance-and-risk- 77 performance, especially with respect to economic, management/corporate-governance environmental and social impact, opportunities and risks https://annualreport2019.rai.nl/governance-and-risk- 82 management G4-45 Procedures of the highest governance body for overseeing https://annualreport2019.rai.nl/governance-and-risk- 82 economic, environmental and social impact, opportunities management and risks G4-46 The role of the highest governance body in reviewing the https://annualreport2019.rai.nl/governance-and-risk- 82 effectiveness of risk management processes in the field of management economic, environmental and social topics
128 GRI code GRI G4 Information directives Clarification Pag.
G4-47 Frequency of the highest governance body’s review of Monthly economic, environmental and social opportunities, risks and impact G4-48 Highest committee or role/position that reviews and https://annualreport2019.rai.nl/governance-and-risk- 82 approves the annual sustainability report and ensures that management all material aspects are covered G4-49 Process for communicating critical concerns to the highest https://annualreport2019.rai.nl/governance-and-risk- 82 governance body management G4-50 Nature and number of critical concerns that were - communicated to the highest governance body and the manner in which they were addressed G4-51 Manner in which the remuneration policies of the highest Remuneration report on RAI.NL governance body, top managers and senior executives (including severance pay) are linked with the performance of the organisation (including social and environmental performance) G4-52 Process for determining remuneration Remuneration report on RAI.NL G4-53 How employees’ and shareholders’ views are sought and - taken into account where remuneration is concerned
Ethics and integrity G4-56 Internally developed mission statement or statement of https://annualreport2019.rai.nl/welcome-to-the-rai/strategy- 10 principles, norms of behaviour and assumptions which are and-value-creation important for economic, environmental and social performance
Part 2 GRI code GRI G4 Information directives Clarification Pag.
Economic performance Information about the management approach RAI Amsterdam’s Annual Report and Sustainability Report describe the economic and financial approach G4-EC1 Direct economic value generated and distributed https://annualreport2019.rai.nl/executive-board-report 24 G4-EC8 Significant indirect economic impact, including the effects of https://annualreport2019.rai.nl/executive-board-report 24 that impact
Procurement Information about the management approach - EO9 Type and sustainability performance of procurement - EO1 Direct economic impact and value creation as a result of - sustainable initiatives
Environment Information about the management approach We try to minimise our environmental impact. To guarantee a systematic approach in our business operations, we use an environmental management system based on international guidelines and standards. The objectives are established in our CSR policy plan.
Energy Information about the management approach We invest in reducing the use of fossil fuels and our energy consumption.
129 GRI code GRI G4 Information directives Clarification Pag.
G4-EN3 Energy consumption within the organisation https://annualreport2019.rai.nl/executive-board-report/for- 44 community-city-and-society G4-EN6 Reduction of energy consumption https://annualreport2019.rai.nl/executive-board-report/for- 44 community-city-and-society
Air emissions, wastewater and waste substances Information about the management approach Waste is one of the priority areas within the RAI’s CSR policy. Our goal is that the RAI's waste management be among the best in the world within the convention and events industry. G4-EN15 Direct emissions of greenhouse gasses (GHG) scope 1 https://annualreport2019.rai.nl/executive-board-report/for- 44 community-city-and-society G4-EN16 Indirect emissions of greenhouse gasses (GHG) scope 1 https://annualreport2019.rai.nl/executive-board-report/for- 44 community-city-and-society G4-EN19 Reduction of greenhouse gas (GHG) emissions https://annualreport2019.rai.nl/executive-board-report/for- 44 community-city-and-society G4-EN23 Total weight of waste by type and disposal method https://annualreport2019.rai.nl/executive-board-report/for- 44 community-city-and-society
Transport Information about the management approach RAI Amsterdam welcomed about 1.6 million visitors in its concention centre in 2019. We ensured that their visits proceeded in a safe and efficient way so as to minimise the impact on the environment. We focus on preventing traffic jams, stimulating alternatives to cars, and limiting or preventing emissions, hindrance and noise pollution. EO2 Modes of transport taken by visitors as a percentage of total https://annualreport2019.rai.nl/executive-board-report/for- 44 transportation, and initiatives to encourage the use of community-city-and-society sustainable transport options
Social Information about the management approach To improve wellbeing, we focus on creating social value for both internal and external stakeholders. RAI Amsterdam has been connecting people since 1893, and as such occupies a central space in its social environment. https://annualreport2019.rai.nl/welcome-to-the-rai/strategy- 10 and-value-creation
Work conditions and decent work Information about the management approach RAI Amsterdam aims to contribute to the wellbeing of current and future employees in an active and visible way. We therefore have a sustainable HR policy oriented toward wellbeing, vitality and lifestyle, and invest in the local community. LA1 Total number of personnel by type of work, work agreement https://annualreport2019.rai.nl/welcome-to-the-rai/key- 19 and region figures https://annualreport2019.rai.nl/executive-board-report/for- 58 employees
Health and safety Information about the management approach RAI Amsterdam aims to contribute to the sustainable employability of its workers by deploying specific policies that target health, safety and vitality. LA4 Minimum notice periods in case of operational changes, This indicator is defined by law in the Netherlands. including the specifications in collective agreements
130 GRI code GRI G4 Information directives Clarification Pag.
LA6 Rates of injury, occupational diseases, lost days, and https://annualreport2019.rai.nl/executive-board-report/for- 58 absenteeism, and total number of work-related fatalities, by employees region and by gender LA8 Health and safety topics covered in formal agreements with In the covenant for the cleaning and window cleaning trade unions sector, RAI Amsterdam has established agreements to ensure good working conditions for its employees. LA11 Percentage of employees who receive regular reports on All employees go through a yearly evaluation and performance and career development per gender and assessment in which individual performances and career employee category development are discussed. LA12 Composition of governance bodies and breakdown of https://annualreport2019.rai.nl/welcome-to-the- 23 employees according to gender, age group, minority group rai/composition-of-the-executive-board membership, and other indicators of diversity https://annualreport2019.rai.nl/welcome-to-the- 22 rai/composition-of-the-supervisory-board
Equal remuneration for women and men LA13 Ratio of basic salaries and remuneration of women and men RAI Amsterdam has fixed salary scales which do not per employee category and significant business location differentiate between women and men
Local communities (society) Information about the management approach To improve wellbeing, we focus on creating social value for both internal and external stakeholders. RAI Amsterdam has been connecting people since 1893, and as such occupies a central space in its social environment. G4-S01 Implemented local community engagement programmes, https://annualreport2019.rai.nl/welcome-to-the-rai/strategy- 10 impact assessments, and development programmes and-value-creation https://annualreport2019.rai.nl/executive-board-report/for- 44 community-city-and-society
Screening of suppliers for social impact Information about the management approach RAI selects local suppliers if possible G4-S09 Percentage of new suppliers that were screened using n/a criteria for impact on society
Health and safety of customers/visitors Information about the management approach RAI Amsterdam is one of the leading European convention centres as far as safety is concerned. The Safe Working Practices Manual describes the relevant rules and procedures. G4-PR1 Percentage of significant product and service categories for n/a which health and safety impacts must be improved EO7 Numbers and types of injuries, fatalities and incidents - involving visitors and other relevant stakeholders
131 #08 Annex
• Personal details management and works council
134 Personal details management and works council
Balance at the end of 2019
Management RAI Amsterdam Name Title
Paul Riemens CEO Maurits van der Sluis COO Jan van den Bosch Director Venue Jules Broex Director Operations Eline Deijs Director Marketing & Digital Bas Dalm Director Commerce Bart van der Heijden Director Clients Menno Roodenburg Director Finance Bret Baas Manager IT Pauline Bottema-Sanders General counsel & Company secretary Bianca van den Oever Manager HR
Works Council RAI Amsterdam Name Title
Edo Kayser chair Kees van Gastel vice-chair Jorn Bom Jean-Paul ten Kleij Robin van Os Hugo Rosenberg Rocco Stokvis Pamela Peetoom Jolanda Visser Paulien van Waegeningh Suzanne van Vliet
133 Colophon
Published by RAI Amsterdam, Corporate Communication
Concept and realisation Toebosch Consult
Photography OTTI Fotografie Julie Blik Fotografie Ad Bogaard Fotografie MRPEREZIDENT Fotografie Bastiaan Aalbersberg
Printing Mullervisual Communication
Translation Writewell Quality Text, Amsterdam
Website Developed in Kirra Jaarverslag
Contact RAI Amsterdam welcomes your feedback to the annual report via [email protected]
Copyright Any information included in this annual report can be copied stating the source: ‘Jaarverslag RAI Holding BV 2019’.
134 137 RAI Amsterdam Europaplein 1078 GZ Amsterdam The Netherlands Postbus 77777 1070 MS Amsterdam The Netherlands Tel. +31 20 549 12 12 Fax +31 20 646 44 69 www.rai.nl
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