Annual Report Schiphol Group Stans at the centre of the world.. Creating AirportCities 2000 annual report Schiphol Group Table of contents 2 Business areas Schiphol Group 53 Corporate profit and loss account for the year 3 Schiphol Group – A Profile ended 31 December 2000 4 Key figures 54 Notes to the corporate balance sheet and 6 Information for Shareholders profit and loss account 7 Report of the Supervisory Board 9 Members of the Supervisory Board, Board of 57 Other information Management and Central Works Council 58 Auditor’s report 59 Overview of participating interests Report of the Board of Management 60 Ten-year summary (in EUR) 10 Foreword by the Chairman of the 62 Consolidated balance sheet at Board of Management 31 December 2000 (after profit appropriation) 12 Goals and Strategy (in EUR) 14 Financial developments 64 Consolidated profit and loss account for the 18 Risk Management year ended 31 December 2000 (in EUR) 19 Personnel and Organisation 65 Consolidated cash flow statement (in EUR) 21 Accessibility, Noise Management and Safety 66 Appendices 24 Business area Aviation 72 Glossary 27 Business area Consumers 29 Business area Real Estate 31 Business area Alliances and Participations 34 Forecast Financial Statements 36 Consolidated balance sheet at 31 December 2000 (after profit appropriation) 38 Consolidated profit and loss account for the year ended 31 December 2000 39 Consolidated cash flow statement 40 Accounting policies – consolidation, valuation and determination of profit 42 Notes to the consolidated balance sheet 49 Notes to the consolidated profit and loss account 52 Corporate balance sheet for the year ended 31 December 2000 (after profit appropriation) 2 Business areas Schiphol Group Business areas Schiphol Group Aviation Consumers Real Estate Alliances and Participations Most Planning, coordination, Retail, parking, Development, Pantares important capacity management and advertising, e-business management and Rotterdam Airport activities information for aviation and space rental operation of investments Eindhoven Airport processes at Amsterdam in Amsterdam in real estate on and Lelystad Airport Schiphol Schiphol’s terminal around Amsterdam JFKIAT Schiphol and other Brisbane Airport airports RONA 4.4% 30.2% 6.4% 0.9%* Total NLG 698 million NLG 533 million NLG 120 million NLG 74 million operating income Operating NLG 106 million NLG 228 million NLG 88 million -/- NLG 7 million result Average NLG 2,380 million NLG 754 million NLG 1,367 million NLG 261 million fixed assets Investments NLG 377 million NLG 91 million NLG 152 million NLG 17 million Result of NLG 147 million revaluation of property portfolio RONA incl. 17.2% result of revaluation of property portfolio * In calculating the RONA (Return on Net Assets), results in participations were taken into account. Financial fixed assets are included in the average fixed assets. Schiphol Group – A Profile 3 Schiphol Group is an airport operator whose been categorised in the Report of the Board of primary activity is to create and develop Management into four Business areas: Aviation, AirportCities. The Group aims to develop into Consumers, Real Estate, and Alliances & a leading international airport operator. Participations. In addition to being an efficient multifunctional Schiphol Group endeavours to create value for transportation hub for air, rail and road, an shareholders, while maintaining the interests AirportCity is a location that offers 24-hour service of all stakeholders. Its strategy focuses on to visitors (passengers, staff and visitors) and strengthening its international competitive international companies located locally (airlines, position, and includes further expansion of the distribution companies, logistics companies, AirportCity formula. and service providers) by way of shops, catering facilities, information and communications technology (ICT), business units, conference rooms, and recreational facilities. Schiphol Group’s showpiece is Amsterdam Airport Schiphol, where development and actualisation of the AirportCity formula are most advanced. The experience and expertise acquired here is used to apply the formula to other international airports. Besides Amsterdam Airport Schiphol, Schiphol Group operates Rotterdam Airport, owns Lelystad Airport and holds 51% of the shares in Eindhoven Airport. The Group is also active internationally, including Terminal 4 at John F. Kennedy Airport in New York and Brisbane Airport in Australia. The Group employs almost 2,000 people. In 2000, Schiphol Group generated a turnover of NLG 1.4 billion and a net profit of NLG 317 million. Approximately half of the net turnover was acquired through airport charges. Other income was acquired from commercial activities, real estate, and other interests. These activities have 4 Key figures (in NLG million, unless stated otherwise) For comparison, previous years’ figures have been adjusted to the current accounting policies. For amounts in euro see p. 60-65. 2000 1999 1998 1997 1996 Results Net turnover 1,404 1,268 1,219 1,110 982 Operating profit 415 392 399 322 285 Net profit 317 280 348 283 210 Amortisation and depreciation 228 173 176 170 157 Cash flow from operating activities 1) 554 640 624 522 419 Balance sheet data Shareholders’ equity 3,402 3,002 2,696 2,379 2,104 Total assets 5,446 4,868 4,410 3,914 3,547 Ratios Return on average equity 9.9 9.8 13.7 12.6 10.6 ROCE 2) 9.0 9.4 10.5 9.4 9.1 Debt-equity ratio 0.21 0.21 0.23 0.26 0.29 Operating indicators Punctual arrivals (%) 3) 75.7 73.2 69.5 75.4 78.9 Punctual departures (%) 4) 64.1 61.9 57.2 67.7 72.3 Business volume (in quantities) Schiphol Group Air transport movements 455,925 430,360 411,599 386,064 354,528 Passengers (x 1,000) 40,645 37,668 35,248 32,308 28,510 Cargo (x 1,000 kg) 1,223,377 1,182,319 1,173,787 1,163,266 1,084,971 Of which: Amsterdam Airport Schiphol Air transport movements 414,928 393,606 376,810 349,476 321,779 Passengers (x 1,000) 39,607 36,772 34,420 31,570 27,795 Cargo (x 1,000 kg) 1,222,594 1,180,717 1,171,256 1,161,234 1,082,846 Personnel Average effective workforce 1,864 1,868 1,928 1,791 1,717 in full-time equivalents 1) See the cash flow statement for a breakdown. 2) Return on capital employed (ROCE): Operating profit (loss) / (average liabilities less non-interest bearing short-term loans). 3) Percentage of flights that arrived within 15 minutes of schedule. 4) Percentage of flights that departed within 15 minutes of schedule. 2000 annual report Schiphol Group 5 Return on Net Assets (RONA) Operating result Operating profit (loss) / average fixed assets As a % of net turnover 4.0 6.0 8.0 10.0 12.0 26.0 30.0 34.0 1996 9.5 1996 29.0 1997 9.9 1997 29.0 1998 11.0 1998 32.7 1999 9.4 1999 30.9 2000 8.7 2000 29.6 EBITDA Capital expenditure Earnings before interest, taxation, depreciation and x NLG 1 million amortisation x NLG 1 million 0 200 400 600 800 0 200 400 600 800 1996 442 1996 248 1997 492 1997 376 1998 575 1998 588 1999 565 1999 728 2000 643 2000 637 Interest coverage ratio Operating cash flow per share Operating profit (loss) / net financial items (in NLG) 3.0 4.0 5.0 6.0 7.0 8.0 0 1,000 2,000 3,000 4,000 5,000 1996 4.4 1996 2,447 1997 7.3 1997 3,048 1998 7.0 1998 3,644 1999 6.3 1999 3,737 2000 6.2 2000 3,235 Earnings per share Dividend per share (in NLG) (in NLG) 0 500 1,000 1,500 2,000 2,500 0 100 200 300 400 1996 1,226 1996 146 1997 1,653 1997 204 1998 2,034 1998 263 1999 1,636 1999 263 2000 1,850 2000 292 6 Information for shareholders Share capital Important dates The authorised capital of Schiphol Group 29 March 2001 (N.V. Luchthaven Schiphol) is NLG 300 million, Annual General Meeting of Shareholders divided into 300,000 shares with a nominal value of NLG 1,000 each. The issued capital is 25 August 2001 NLG 171,255,000. The shareholders in Schiphol Publication of 2001 interim results Group are: 1 March 2002 The State of the Netherlands 75.8% Publication of figures for 2001 The City of Amsterdam 21.8% The City of Rotterdam 2.4% 30 March 2002 Publication of 2001 annual report The State of the Netherlands announced at the end of 2000 that it planned a phased sell-off of 17 April 2002 all its shares. Annual General Meeting of Shareholders Dividend policy The dividend policy in recent years was aimed at distributing approximately 15% of net profit as cash dividends to shareholders. Report of the Supervisory Board 7 In the course of 2000, the Supervisory Board held Other points of discussion included construction of five regular meetings and two additional meetings. the fifth runway, financial results, development of The extraordinary meetings were held on account traffic and transport, and significant decisions of a bid to buy the shares in Aeroporti di Roma concerning future investments. and the potential joint participation with the Dutch Railways and KLM in a high speed rail line The Financial Committee convened on two project. occasions during the year, when the financial statements for 1999, the interim report, the A large proportion of the general meetings was internal audit, and other internal matters were devoted to the forthcoming Initial Public Offering dealt with. (IPO). A temporary committee, otherwise known as the Privatisation Committee was established to In a meeting without the presence of advise the Board on such issues.