Schiphol Group Annual Report 2005 Financial Figures Annual Report 2005 Schiphol Group Annual Report 2005 Creating AirportCities Financial figures* Traffic Volume Amsterdam Airport Schiphol, Rotterdam Airport & Eindhoven Airport combined Revenue Earnings per share in EUR Passengers (* 1,000) Cargo (tonnes) Air transport movements EUR million 2005 1,126 2005 46,152 2005 1,449.872 2005 430,566 2005 948 2004 939 2004 44,370 2004 1,421.066 2004 431,456 2004 876 2003 1,117 2003 41,000 2003 1,306.385 2003 417,315 2002 799 2002 41,711 2002 1,240.696 2002 430,134 2001 1,536 2001 40,558 2001 1,183.969 2001 447,742 EBITDA EUR million Dividend per share in EUR 2005 478 2005 proposal 323 Business Area information 2004 424 2004 271 2003 239 2002 245 Revenue Investments Operating result 2001 263 7% 9% 3% Operating Result EUR million 12% Investments in property, plant & equipment 25% 32% 2005 311 and cash flow from operating activities 18% 2004 265 EUR million Published by Aviation 268 277m 311m 2005 300 Consumers 948m 948 mln. 948 mln. Real Estate Schiphol Group 293 6% 2004 327 Alliances & 21% Participations P.O. Box 7501 353 67% 2003 60% RONA after tax 298 1118 ZG Schiphol EUR million 343 2002 293 2005 6.7% The Netherlands 341 40% 2001 2004 5.6% 216 Tel. +31 20 601 9111 Aviation Real Estate Investments Cash flow RONA after tax RONA after tax www.schipholgroup.com 2005 4.1% 2005 4.6% 2004 4.0% 2004 3.7% Key figures* Consumers Alliances & Participations EUR million unless stated otherwise 2005 2004 RONA after tax RONA after tax To obtain more copies contact: 2005 40.8% 2005 3.6% +31 20 601 2570 Results 2004 33.8% 2004 -1.2% Revenue 948 876 8.1% Capital gains on investment property 12 5 144.1% Dutch version written by Operating result 311 265 17.4% Van Luyken Communicatie Adviseurs, Haarlem, The Netherlands Result before tax 277 239 15.7% Schiphol Group, Schiphol, The Netherlands Net result excluding investment property gains 184 157 17.1% Schiphol Group locations Net result (attributable to shareholders) 193 161 19.9% Depreciation, amortisation and impairment 167 160 4.4% English translation Cash flow from operating activities 300 327 - 8.3% Mac Bay Consultants, Amsterdam, The Netherlands Balance Sheet Total assets 3,681 3,556 3.5% Design Shareholders' equity 2,245 2,093 7.3% Graphic Invention, De Meern, The Netherlands Average non-current assets 3,203 3,087 3.8% Ratios Art Direction and Photography Interest coverage ratio 9.1x 10.3x Xander Richters, Abcoude, The Netherlands Return on equity 8.9% 7.9% and others Interest-bearing debt / total assets 25% 28% Personnel • “Saphire” programme, Indonesia • Amsterdam Airport Schiphol • Retail Joint Venture - Arlanda Stockholm Colour separations and printing Average effective workforce in full-time equivalents 2,179 2,216 -1.7% • Real Estate - Tradeport Hong Kong • Rotterdam Airport • Real Estate - Avioport Milan Malpensa • Shareholder - JFK International Terminal 4 • Eindhoven Airport • Real Estate - Villa Carmen Milan Malpensa Drukkerij Brummelkamp, Hoofddorp, The Netherlands • Shareholder - Brisbane Airport • Airport Lelystad • Shareholder - Vienna International Airport * For comparison purposes, 2004 figures have been adjusted for the transition to IFRS. See pages 157 - 180 for details. • Management contract - Aruba Airport 2001 - 2003 figures have not been adjusted for the transition to IFRS • Joint Venture - Angkasa Pura Schiphol Jakarta Indonesia Financial figures* Traffic Volume Amsterdam Airport Schiphol, Rotterdam Airport & Eindhoven Airport combined Revenue Earnings per share in EUR Passengers (* 1,000) Cargo (tonnes) Air transport movements EUR million 2005 1,126 2005 46,152 2005 1,449.872 2005 430,566 2005 948 2004 939 2004 44,370 2004 1,421.066 2004 431,456 2004 876 2003 1,117 2003 41,000 2003 1,306.385 2003 417,315 2002 799 2002 41,711 2002 1,240.696 2002 430,134 2001 1,536 2001 40,558 2001 1,183.969 2001 447,742 EBITDA EUR million Dividend per share in EUR 2005 478 2005 proposal 323 Business Area information 2004 424 2004 271 2003 239 2002 245 Revenue Investments Operating result 2001 263 7% 9% 3% Operating Result EUR million 12% Investments in property, plant & equipment 25% 32% 2005 311 and cash flow from operating activities 18% 2004 265 EUR million Published by Aviation 268 277m 311m 2005 300 Consumers 948m 948 mln. 948 mln. Real Estate Schiphol Group 293 6% 2004 327 Alliances & 21% Participations P.O. Box 7501 353 67% 2003 60% RONA after tax 298 1118 ZG Schiphol EUR million 343 2002 293 2005 6.7% The Netherlands 341 40% 2001 2004 5.6% 216 Tel. +31 20 601 9111 Aviation Real Estate Investments Cash flow RONA after tax RONA after tax www.schipholgroup.com 2005 4.1% 2005 4.6% 2004 4.0% 2004 3.7% Key figures* Consumers Alliances & Participations EUR million unless stated otherwise 2005 2004 RONA after tax RONA after tax To obtain more copies contact: 2005 40.8% 2005 3.6% +31 20 601 2570 Results 2004 33.8% 2004 -1.2% Revenue 948 876 8.1% Capital gains on investment property 12 5 144.1% Dutch version written by Operating result 311 265 17.4% Van Luyken Communicatie Adviseurs, Haarlem, The Netherlands Result before tax 277 239 15.7% Schiphol Group, Schiphol, The Netherlands Net result excluding investment property gains 184 157 17.1% Schiphol Group locations Net result (attributable to shareholders) 193 161 19.9% Depreciation, amortisation and impairment 167 160 4.4% English translation Cash flow from operating activities 300 327 - 8.3% Mac Bay Consultants, Amsterdam, The Netherlands Balance Sheet Total assets 3,681 3,556 3.5% Design Shareholders' equity 2,245 2,093 7.3% Graphic Invention, De Meern, The Netherlands Average non-current assets 3,203 3,087 3.8% Ratios Art Direction and Photography Interest coverage ratio 9.1x 10.3x Xander Richters, Abcoude, The Netherlands Return on equity 8.9% 7.9% and others Interest-bearing debt / total assets 25% 28% Personnel • “Saphire” programme, Indonesia • Amsterdam Airport Schiphol • Retail Joint Venture - Arlanda Stockholm Colour separations and printing Average effective workforce in full-time equivalents 2,179 2,216 -1.7% • Real Estate - Tradeport Hong Kong • Rotterdam Airport • Real Estate - Avioport Milan Malpensa • Shareholder - JFK International Terminal 4 • Eindhoven Airport • Real Estate - Villa Carmen Milan Malpensa Drukkerij Brummelkamp, Hoofddorp, The Netherlands • Shareholder - Brisbane Airport • Airport Lelystad • Shareholder - Vienna International Airport * For comparison purposes, 2004 figures have been adjusted for the transition to IFRS. See pages 157 - 180 for details. • Management contract - Aruba Airport 2001 - 2003 figures have not been adjusted for the transition to IFRS • Joint Venture - Angkasa Pura Schiphol Jakarta Indonesia 2 Schiphol Group Contents Foreword 4 Profile 7 Important Events 9 Shareholder Information 10 Objectives and Strategy 11 Financial Performance 15 Business Risks 21 Corporate Social Responsibility 27 Aviation Business Area 30 Consumers Business Area 40 Real Estate Business Area 46 Alliances & Participations Business Area 54 Prospects 59 Corporate Governance 60 Report of the Supervisory Board 63 Remuneration Policy 68 Board of Management and Senior Executives 73 Financial Statements 74 Other Information 191 Appendices 196 Glossary 200 This is an English translation of the Dutch 2005 Schiphol Group Annual Report. In the event of any disparity between the Dutch original and this translation, the Dutch text will prevail. Annual Report 2005 3 Foreword An important year The current year will be an important year for We can look back on a successful year for us. In the first place because the new Aviation Schiphol Group. At Amsterdam Airport Schiphol, Act (Wet Luchtvaart) will be evaluated in 2006. passenger numbers exceeded 44 million and Since the new 18R-36L runway was opened to cargo volume grew by 2%, enabling air traffic in February 2003 Amsterdam Airport ‘Amsterdam’ to retain its position as Europe’s Schiphol has been required to comply with a fourth-largest passenger airport and third-largest new system of environmental standards and a cargo airport. The network of connections new enforcement regime. This system, which is served by Amsterdam Airport Schiphol was embodied in the Aviation Act, is to be evaluated further enhanced with 14 additional scheduled this year. The evaluation offers opportunities destinations in the summer of 2005 compared to improve legislation and other rules and with 2004. regulations for the benefit of all parties at and around Amsterdam Airport Schiphol. Operationally, commercially and financially we performed better than the previous year. Our The present statutory framework must permit baggage handling performance at Amsterdam Amsterdam Airport Schiphol to continue to Airport Schiphol improved, the punctuality with grow in the years ahead by making better use of which air traffic was handled was significantly the existing environmental capacity. This should better and Amsterdam Airport Schiphol be possible, for example, by adopting a more remained within the noise limits for the fifth rigorous policy of selectivity focussing on the consecutive year. In addition, See Buy Fly noisiest aircraft, by updating the input data sales showed a marked recovery and our real on which the noise limits are based and by estate activities along with our investments in introducing different runway usage patterns and associates around the world made a substantial flight paths to reduce noise impact in the local positive contribution to our result in 2005. community. With regard to the latter, we plan to carry out pilot schemes in consultation with the We shall continue to build on these good results regional community in order to demonstrate in 2006. that genuinely effective measures are possible. 4 Schiphol Group CONTENTS Foreword From left to right Ad Rutten, Pieter Verboom, Gerlach Cerfontaine In the longer term, Amsterdam Airport Schiphol continue to operate successfully in the competi- must be allowed to grow to around 600,000 air tive aviation industry of 2006 and in the future.