Annual Report 2013
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Schiphol Group Annual Report 2013 Contents Contents About us 2 Profile 3 Facts and Figures 6 Aviation Mission and Ambition 8 page 14 Schiphol constructs, converts and connects 10 Business model 13 Strategy 22 Message from the CEO 23 Consumer Changing business environment 25 Strategy 28 Products & Management Agenda 2014 31 Services page 16 Our results for 2013 32 Management Agenda 2013 33 Top Connectivity 34 Real Estate Excellent Visit Value 44 page 18 Competitive Marketplace 53 Sustainable Performance 59 Economic regulation 79 Financial performance 81 Governance 85 Alliances & Report of the Supervisory Board 86 Participations Supervisory Board 94 page 20 Management Board 96 Corporate Governance 99 Remuneration 102 Shareholder information 107 Risk management 108 Annual Statements Operational and socio-economic statements 115 Financial Statements 2013 132 2013 Annual Report 1 About us 2013 Annual Report 2 Profile Profile Schiphol Group is an airport company and Amsterdam Airport Schiphol is its principal airport. We aim to create sustainable value for our stakeholders, with due regard for their various interests. All our actions reflect our key values: reliability, efficiency, hospitality, inspiration and sustainability. Destinations hub The activities at Schiphol are an important engine that drives Amsterdam Airport Schiphol is a well-equipped international the Dutch economy and generates employment. Every year, airport that offers state-of-the-art facilities to 99 airlines aviation adds over 26 billion euros to the Dutch gross domestic which, in 2013, carried a total of 52.6 million travellers and product. The Schiphol site alone accommodates some five over 1.5 million tonnes of cargo from Schiphol to destinations hundred companies that provide jobs for approximately all over the world. For our operations we depend strongly on 65,000 employees. The Amsterdam region offers an attractive our home carrier KLM and its SkyTeam partners, which business climate for internationally oriented companies and account for approximately 70% of all air traffic to and from institutions. Thanks to its network of destinations, Schiphol is Schiphol. Via Amsterdam Airport Schiphol, passengers and one of Europe's four major airports. This is a remarkable cargo can reach 323 direct destinations worldwide, several achievement, considering its relatively small domestic market times per day or per week. In addition, our regional airports in the Netherlands. - Eindhoven Airport and Rotterdam The Hague Airport - offer numerous flights to destinations within Europe. In order to consolidate and expand this position, we will be investing in capacity and quality improvements over the Mainport Schiphol coming years. This will include large-scale adaptations to the Amsterdam Airport Schiphol, the high-quality network terminal, gates and piers in anticipation of future market offered by KLM, its partners and other airlines, and the demand. Renovation work started in July 2013 and will take attractive Amsterdam metropolitan region have jointly several years to complete. developed into what we refer to as Mainport Schiphol. As this name suggests, Schiphol is more than just an airport with a global network. The Mainport serves as a hub of businesses and activities that all reinforce each other. Together, they create an international and multimodal junction where flows of people, goods, information, knowledge and culture all converge. 2013 Annual Report 3 Profile Amsterdam Airport Schiphol 32332 direct destinations 52.652 million passengers, 1.5 million tonnes of cargo 425,565 air transport movements 29290,000 jobs in the Netherlands, approx 65,000 people are employed at the Schiphol location 650,000 m2 terminal area, five main runways on 2,787 hectares 4 billion euros total value of fixed assets approx 500 companies located at the Schiphol location 26 billion euros contribution of aviation sector to the Dutch Gross Domestic Product AirportCity an 8% cross-participation interest. In addition, we are Schiphol is our principal airport and we operate it as an involved with Terminal 4 at JFK International Airport in New AirportCity: a dynamic metropolitan area offering travellers York, and we are involved in airports in Australia, Hong Kong, and airlines all the services they need, 24 hours a day. Our Aruba and Sweden. Over the past two decades, many of these three complementay and mutually reinforcing business areas activities have seen positive development. In all, they account bring the AirportCity formula into practice. Serving travellers, for over a quarter of Schiphol Group's results. airlines and ground handling agents, the Aviation business area has a pivotal role at the airport. Aviation supplies and Network of partners manages the infrastructure that is required to ensure At Schiphol we collaborate with partners, government pleasant, reliable and efficient arrival and departure organisations and other parties in a variety of networks. Our processes for travellers, baggage and cargo. The Consumer operations at Schiphol depend not only on airlines, but also Products & Services business area offers travellers a range of on air traffic control, the slot coordinator, the national products and services that guarantee a carefree, comfortable government, the provincial and local authorities, local and enjoyable travel process. The Real Estate business area residents, handling agents, security companies, customs and develops and manages real estate at and around the airport. the Dutch Border Police (Koninklijke Marechaussee). While The airport area is an attractive environment for companies, these parties have their own roles and responsibilities, our offering a huge variety of high-quality real estate in the form close, long-term and constructive collaboration with each of of offices, industrial premises and logistics facilities. them is key to successful and sustainable airport operations. Regional airports An enterprise with a socio-economic function Schiphol Group also holds interests in three regional airports: Our airports play an important socio-economic role. In order Rotterdam The Hague Airport (wholly owned), to safeguard the continuity of our activities in the highly Eindhoven Airport (51% interest) and Lelystad Airport (wholly competitive aviation sector, Schiphol Group pursues a robust owned). These three airports each develop their own market financial policy. Rather than maximising profits, Schiphol position. In future, the importance of Eindhoven Airport and Group aims to achieve a reasonable return on its equity based Lelystad Airport will increase as they will be used to on moderate increments in airport charges and a stable accommodate non-Mainport-related traffic. dividend distribution trend. We continually invest in our infrastructure and facilities, and finance these investments International activities independently. For this reason it is crucial for us to have easy We carry out our international activities in order to access to the capital market and to maintain our current credit strengthen Schiphol Group and the Mainport. To that end, we ratings (S&P's A+ and Moody's A1). This solid position enables seek partnerships with major international airports that are us to continue fulfilling our socio-economic role and of particular significance to the Mainport. We collaborate contribute to the strength and appeal of the Dutch economy. closely with our partner Aéroports de Paris, in which we have 2013 Annual Report 4 Profile Schiphol also continues to further incorporate sustainability principles into its operations. Social and ecological considerations go hand in hand with economic decisions. Our operations reflect social values and together with our stakeholders we collaborate on various themes that are relevant to our business: sustainable employment, accessibility and air quality, climate-friendly aviation, commodity shortages and noise and the local environment. We are engaged in an active dialogue with our stakeholders on the impact of these themes. As the central coordinating entity at the airport we encourage our partner businesses and organisations to reflect a firm commitment to sustainability. Due to the position and fucnction of Schiphol in Dutch society, aviation activities increasingly serve as a breeding ground for new and innovative technologies and, as such, constitute an attractive environment for businesses and employment. 2013 Annual Report 5 Facts and Figures Facts and Figures Transport figures Amsterdam Airport Schiphol, Rotterdam The Hague Airport and Eindhoven Airport combined 2013 57,556 2013 1,531 2013 468,996 Passengers Cargo volume Air transport movements x 1,000 2012 55,284 x 1,000 tonnes 2012 1,483 2012 461,237 2011 53,522 2011 1,524 2011 453,613 2010 48,324 2010 1,512 2010 415,883 2009 46,246 2009 1,286 2009 418,742 Total Amsterdam Airport Schiphol 2013 52,569 2013 1,531 2013 425,565 Passengers Cargo volume Air transport movements x 1,000 2012 51,034 x 1,000 tonnes 2012 1,483 2012 423,407 2011 49,755 2011 1,524 2011 420,249 2010 45,212 2010 1,512 2010 386,316 2009 43,570 2009 1,286 2009 391,265 Passengers and Air Transport Movements Amsterdam Airport Schiphol Number of passengers (left axis), Air Transport Movements (right axis) 60 440 50 400 40 360 30 320 20 280 10 240 0 200 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Number of passengers (in millions) Air Transport Movements (in thousands) 2013 Annual Report 6 Key figures Key figures EUR million unless stated otherwise 2013 2012 % Results Revenue