Schiphol Group Annual Report 2007 Important Events in 2007 No flotation or private placement into the activities we are developing in order to achieve for Schiphol Group the ambitious targets we have set ourselves. One of In February, the government decided that Schiphol our aims is to ensure that our own operations at Group would not be listed on the stock exchange. the Schiphol site will be carbon neutral by 2012. However, an investigation would be carried out as to whether a private placement with institutional Cabinet introduces Air Passenger investors was possible. In October, the government Tax for all Dutch airports ruled out this option. The government will introduce an Air Passenger Tax for passengers departing from Dutch airports. From Agreement on growth of 1 July 2008, passengers will pay EUR 11.25 for destinations Amsterdam Airport Schiphol within the European Union (EU) and within 2500 km. In September, the government agreed to an amendment For destinations further away than 2500 km, passengers of the Airport Traffic Ruling (luchthavenverkeerbesluit – will pay EUR 45. We will collect these levies for airports LVB), allowing Schiphol to expand, under certain that fall under Schiphol Group and subsequently conditions, to 480,000 air transport movements by 2010. hand these funds over to government. Studies have To achieve this, the limits of some noise measurement revealed that the introduction of this tax will reduce points have to be raised, while those of others have passenger numbers and the number of jobs at and to be lowered. Together with Air Traffic Control the around Amsterdam Airport Schiphol and the other Netherlands (LVNL), we charted the consequences for Dutch airports. the surrounding areas in an environmental impact assessment (Milieu Effect Rapportage – MER), which the minister of Transport, Public Works and Water Management and the minister of Housing, Spatial Winner of Henri Sijthoff Award Planning and the Environment accepted in July. On 31 October 2007, the Schiphol Group 2006 Based on this report, the two ministers have drawn Annual Report received the Henri Sijthoff Award up the draft LVB. The Lower House will discuss the in the category of unlisted companies. This was ruling early in 2008. the first time a prize was awarded in this category. According to the jury, the report was of a high Economic regulation adopted standard and, on specific points, served as an for Amsterdam Airport Schiphol example to many listed companies. Published by In October, the Netherlands Competition Authority Schiphol Group (NMa) dismissed the majority of the airlines’ objections P.O. Box 7501 to the proposed charges from 1 November 2007 and the 1118 ZG Luchthaven Schiphol procedure followed in this respect. In April 2007, the The Netherlands Schiphol Group NMa had already approved our proposed Allocation Tel. +31 20 6019111 system for allocating assets, costs and revenues which www.schipholgroup.com is used to determine the aviation-related charges of Amsterdam Airport Schiphol. This marked the To obtain more copies contact: definitive adoption of the new economic Tel. +31 20 6012570 regulation for the airport. Dutch version written by However, the NMa did not agree with our Van Luyken Communicatie Adviseurs, Haarlem, the Netherlands proposal to recover a number of cost items from Schiphol Group, Schiphol, the Netherlands 2005 and 2006 to the new charges. The NMa’s ruling means that we have to reduce the aviation- related charges (with the exception of the English translation Annual Report 2007 Metamorfose Vertalingen BV, Utrecht, the Netherlands security charges) by EUR 36.8 million between 1 November 2007 and 1 November 2008. Design Graphic Invention, De Meern, the Netherlands Taking the AirportCity formula a step further with a Climate Plan Art Direction, Photography and Maps for Amsterdam Airport Schiphol Hollandse Hoogte, Amsterdam, the Netherlands We want to take the successful AirportCity formula Fotopersbureau Dijkstra, Uithoorn, the Netherlands one step further and play an active, leading part Schiphol Group, Schiphol, the Netherlands in reducing the harmful effects of the expected and others global climate change. In order to tackle this social problem, we have drawn up a Climate Plan for Colour separations and printing Amsterdam Airport Schiphol. It provides insight Drukkerij Brummelkamp, Hoofddorp, the Netherlands Creating AirportCities Financial figures Traffic Volume Amsterdam Airport Schiphol, Rotterdam Airport & Eindhoven Airport combined Revenue EUR million Earnings per share in EUR Passengers Cargo 2007 1,146 2007 1,844 x 1,000 tonnes Air transport movements 2006 1,037 2006 1,273 + 1,804 2007 50,432 2007 1,610,282 2007 465,686 2005 1,126 2006 48,287 2006 1,526,516 2006 450,166 2004 939 2005 46,152 2005 1,449,872 2005 430,566 2003 1,117 2004 44,370 2004 1,421,066 2004 431,456 Opening balance sheet for tax purposes 2003 41,000 2003 1,306,385 2003 417,315 EBITDA EUR million Dividend per share in EUR 2007 594 2007 proposal 543 2006 478 2006 462 Business Area information 2005 323 2004 271 2003 239 Omzet Totale investeringen Exploitatieresultaat Operating Result 2% EUR million Investments in fixed assets and 6% 3% 2007 420 cash flow from operating activities EUR million 11% 2006 316 23% 375 41% 2007 313 29% 2006 260 362 Aviation Consumers 1.146 mln. 375948 mln. 420948 mln. 2005 268 RONA after tax 307 Real Estate Alliances & 26% EUR million 2004 293 Participations 327 55% 2007 9.2% 57% 2003 353 13% 2006 7.1% 298 Investments 34% Cash flow Aviation Real Estate Key figures* RONA after tax RONA after tax 2007 3.9% 2007 10.0% 2006 3.0% 2006 6.3% EUR million unless stated otherwise 2007 2006 Results Consumers Alliances & Participations RONA after tax RONA after tax Revenue 1,146 1,037 10.6% 2007 45.9% 2007 9.8% Fair value gains on investment property 112 29 290.9% 2006 48.5% 2006 6.5% Operating expenses 841 759 10.8% Operating result 420 316 32.6% Result before tax 395 291 35.6% Net result excluding fair value gains on investment property 233 198 17.7% and effect of opening balance sheet for tax purposes Schiphol Group locations Net result (attributable to shareholders) 316 527 - 40.1% Depreciation, amortisation and impairment 175 162 8.0% Cash flow from operating activities 313 362 - 13.4% Balance Sheet 1 Total assets 4,287 4,165 2.9% 4 Shareholders' equity 2,957 2,722 8.6% 1 2 4 Average non-current assets (excl. deferred tax asset) 3,554 3,324 6.9% 4 2 5 2 3 3 Ratios 3 Return on equity 11.1 % 21.2% 1 1 Leverage 23.5% 24.8% FFO / total debt 34.3% 39.0% FFO interest coverage ratio 7.7x 8.3x 1 Amsterdam Airport Schiphol 1 Retail Joint Venture - Arlanda Stockholm 1 Shareholder - Brisbane Airport Personnel 2 Rotterdam Airport 2 Shareholder - Vienna International Airport 2 Shareholder - JFK International Terminal 4 Average effective workforce in full-time equivalents 2,459 2,293 7.2% 3 Eindhoven Airport 3 Real Estate - Avioport Milan Malpensa 3 Joint Venture - Angkasa Pura Schiphol Jakarta Indonesia 4 Airport Lelystad 3 Real Estate - Villa Carmen Milan Malpensa 3 “Saphire” programme, Indonesia 4 Real Estate - Tradeport Hong Kong 2003 figures have not been adjusted for the transition to IFRS. 5 Management contract - Aruba Airport * Refer to glossary for definitions of the ratios and abbreviations. Schiphol Group Annual Report 2007 Important Events in 2007 No flotation or private placement into the activities we are developing in order to achieve for Schiphol Group the ambitious targets we have set ourselves. One of In February, the government decided that Schiphol our aims is to ensure that our own operations at Group would not be listed on the stock exchange. the Schiphol site will be carbon neutral by 2012. However, an investigation would be carried out as to whether a private placement with institutional Cabinet introduces Air Passenger investors was possible. In October, the government Tax for all Dutch airports ruled out this option. The government will introduce an Air Passenger Tax for passengers departing from Dutch airports. From Agreement on growth of 1 July 2008, passengers will pay EUR 11.25 for destinations Amsterdam Airport Schiphol within the European Union (EU) and within 2500 km. In September, the government agreed to an amendment For destinations further away than 2500 km, passengers of the Airport Traffic Ruling (luchthavenverkeerbesluit – will pay EUR 45. We will collect these levies for airports LVB), allowing Schiphol to expand, under certain that fall under Schiphol Group and subsequently conditions, to 480,000 air transport movements by 2010. hand these funds over to government. Studies have To achieve this, the limits of some noise measurement revealed that the introduction of this tax will reduce points have to be raised, while those of others have passenger numbers and the number of jobs at and to be lowered. Together with Air Traffic Control the around Amsterdam Airport Schiphol and the other Netherlands (LVNL), we charted the consequences for Dutch airports. the surrounding areas in an environmental impact assessment (Milieu Effect Rapportage – MER), which the minister of Transport, Public Works and Water Management and the minister of Housing, Spatial Winner of Henri Sijthoff Award Planning and the Environment accepted in July. On 31 October 2007, the Schiphol Group 2006 Based on this report, the two ministers have drawn Annual Report received the Henri Sijthoff Award up the draft LVB. The Lower House will discuss the in the category of unlisted companies. This was ruling early in 2008. the first time a prize was awarded in this category. According to the jury, the report was of a high Economic regulation adopted standard and, on specific points, served as an for Amsterdam Airport Schiphol example to many listed companies.