Schiphol Group Annual Report 2010 Schiphol Group Schiphol Group Annual Report 2010 Schiphol Group Annual Report 2010 Annual Report 2010 1 Contents Facts and Figures 4 Important Events 6 Schiphol Group at a glance 8 Foreword 10 Report of the Supervisory Board 12 Strategy and objectives 18 Report of the Management Board 22 • Financial performance 24 • Aviation 30 • Consumers 56 • Real Estate 66 • Alliances & Participations 78 • Human Resource Management 88 • Business Risks 96 • Outlook 114 Integrating Corporate Responsibility into the organisation 116 Corporate Governance 144 The Board and Management 146 Remenuration Report 150 Shareholder information 154 Financial Statements 157 Appendices 272 Glossary 276 Maps 282 2 Schiphol Group Annual Report 2010 3 Financial figures Traffic Volume Amsterdam Airport Schiphol, Rotterdam The Hague Airport and Eindhoven Airport combined Revenue Earnings per share EUR million in EUR Passengers Cargo Air Transport Movements x 1,000 x 1,000 x 1,000 2010 1,180 2010 908 2009 1,154 2009 710 2010 48,324 2010 1,512,256 2010 415,883 2008 1,083 2009 46,246 2009 1,286,372 2009 418,742 2007 1,844 2008 50,074 2008 1,567,727 2008 457,074 EBITDA 2006 1,273 + 1,804 2007 50,432 2007 1,610,282 2007 465,686 EUR million Opening balance sheet for tax purposes effect 2006 48,287 2006 1,526,516 2006 450,166 2010 483 2009 383 Dividend per share in EUR Operating Result 2010 409 Business area Information EUR million 2009 347 Omzet Totale investeringen Exploitatieresultaat Revenue Operating result Investments 2008 371 EUROmzet million Totale investeringenEUR million ExploitatierEUR esultaatmillion 2010 297 Omzet Totale investeringen ExploitatierOmzetesultaat Totale investeringen Exploitatieresultaat 7% 2% 8% 2007 543 15% 2009 187 7% 7% 2%7% 8% 2006 462 2% 8% 2% 8% 12% 15% 15% 15% 12% 12% 12% 21% 21% 21% 21% RONA after tax Investments in fixed assets and Aviation cash flow from operating activities EUR million Aviation Aviation Aviation Consumers 1,180 248 32% 297 Consumers 1,180248 32% 248297 32% 297 248 32% 297 Consumers 1,180 Consumers 1,180 Real Estate Real Estate Real Estate Real Estate 2010 5.9% 248 Alliances & Alliances & Alliances & Alliances & 11% 11% 2010 23% 11% 11% Participations 23% 2009 3.8% 351 Participations 23% Participations Participations 23% 58%66% 66% 66% 58% 66% 215 58% 45%58% 45% 45% 45% 2009 327 350 2008 421 2007 375 313 2006 260 362 Aviation Real Estate RONA after tax RONA after tax Investments Cash flow Key figures* 2010 1.7% 2010 4.8% 2009 1.7% 2009 1.5% EUR million unless stated otherwise 2010 2009 + / - Consumers Alliances & Participations Results RONA after tax RONA after tax Revenue 1,180 1,154 2.3% Fair value gains on investment property 22 – 40 2010 41.5% 2010 8.0% 2009 31.9% 2009 4.7% Operating expenses – 905 – 927 – 2.3% Operating result 297 187 58.6% Result before tax 239 123 94.3% Results attributable to shareholders (net result) 169 132 27.9% Schiphol Group locations Net result adjusted for purposes of dividend calculation 152 129 18.0% Depreciation, amortisation and impairment 186 196 – 5.0% Cash flow from operating activities 351 327 7.2% Balance sheet Total assets 5,506 5,528 – 0.4% 1 Shareholders' equity 3,109 2,975 4.5% 4 Average non-current assets (excl. Deferred tax assets) 4,772 4,542 5.1% 1 2 4 4 2 5 Ratios 4 2 3 3 Return on equity (ROE) 5.6% 4.5% 3 Leverage 37.2% 40.5% 1 1 FFO / total debt 17.0% 18.5% FFO interest coverage ratio 3.8x 4.4x Personnel 1 Amsterdam Airport Schiphol 1 Retail Joint Venture - Arlanda Stockholm 1 Shareholder - Brisbane Airport Year-end Workforce in full-time equivalents 2,093 2,395 – 12.6% 2 Rotterdam The Hague Airport 2 Shareholder - Vienna International Airport 2 Shareholder - JFK International Terminal 4 3 Eindhoven Airport 3 Real Estate - Avioport Milan Malpensa 3 Joint Venture - Angkasa Pura Schiphol Jakarta Indonesia 4 Lelystad Airport 3 Real Estate - Villa Carmen Milan Malpensa 3 “Saphire” programme, Indonesia *) Refer to glossary for definitions of the ratios and abbreviations 4 Shareholder and cooperation - Aéroports de Paris 4 Real Estate - Tradeport Hong Kong 5 Management contract - Aruba Airport 4 Schiphol Group Annual Report 2010 5 Important Events Important Events A stronger Main Port structure will have on the Main Port and the network are currently being studied by a group Amsterdam Airport Schiphol has again succeeded of international strategy consultants. Under our in strengthening its position as a Main Port. proposed rate structure, a rate is to be charged The network of connections was expanded per piece of baggage. This will allow the aviation and now includes 301 destinations (+17), sector to do its part in fi nancing the value of which 274 are regular passenger destinations. creation we have realised on its behalf. The number of intercontinental passenger The handling of transfer-passenger baggage destinations rose by 5 to a total of 116. has improved substantially thanks to the large investments made in the baggage system, which has yielded signifi cant savings for the airlines. The ash cloud and wintry weather The so-called ‘black swan’ (an unpredictable Geese force emergency landing event with a huge impact) that affected Amsterdam Airport Schiphol in 2010 – On 6 June a Royal Air Maroc aircraft collided the closure of the airspace for a number of with Canada geese and was forced to return to days in April and May as a result of the ash Schiphol were it made an emergency landing cloud that covered large parts of Europe – with one engine shut down. In order to deal and the heavy snowfall at the beginning and effectively with the growing number of end of the year under review, did not lead to any incidents involving geese, a problem facing insurmountable problems. The organisation many north-European airports, and to improve was able to respond effectively to these airspace safety at and around the airport, extraordinary events. the Netherlands Bird Strike Control Group was created in June. Baggage Hall South Expansion of Terminal 4 in New York In December all renovated check-in desks in Departure Hall 1 were connected to the new On 11 August work began on the construction baggage systems in the Baggage Hall South. of nine international gates for Delta Airlines This baggage hall boasts one of the world’s in Terminal 4 at JFK International Airport in most innovative and fully automated baggage New York. The extension will make Delta Airlines systems with six robots. Terminal 4’s most important customer by far. To fi nance the extension, the Port Authority of New York and New Jersey raised around USD 800 Trial of new enforcement system million. Delta’s choice for Terminal 4 provides a huge impetus for further expansion of the 1 November saw the start of an experiment with North Atlantic SkyTeam network and Amsterdam a new noise enforcement system, which is one of Airport Schiphol’s own Main Port network. the results of the Alders Agreement. Rather than being based on measurement points, the new system is based on strict rules for runway usage. Reorganisation in fi nal phase The present system will remain in operation while the experiment is under way. The strategy review and the ensuing Welcoming facilities reorganisation, which began in 2009, reached the concluding phase at the end In August a refurbished Holland Boulevard was inaugurated with the opening of the New rate structure of 2010. By concentrating on its core activities, world’s fi rst Airport Library by Her Royal Highness Princess Laurentien. The theme of which involved outsourcing a number of the new Holland Boulevard is Dutch culture and design. June saw the opening of an We proposed a new rate structure during operational activities and management and innovative gate on Pier G, where a combination of new design and information provision consultations with the aviation sector on our maintenance tasks, the organisation is now will ensure that passengers’ stay there is as pleasant as possible. A free wireless Internet rates as of 1 April 2011. The effects this new rate able to face the future with confi dence. service (WiFi), available throughout the terminal, began in mid-December. 6 Schiphol Group Annual Report 2010 7 Schiphol Group at a glance Aviation Schiphol Group at a glance The Aviation business area operates at Amsterdam Airport Schiphol. Revenue It provides services and facilities to airlines, passengers and handling agents. The Netherlands Competition Authority (NMa) regulates EUR 697 million Mission airports, particularly through the Alliances & (1.4% vs ‘09) the charges levied. Participations business area. Our revenues We aim to rank among the world’s leading derived from this broad range of activities are Sources of revenue: Airport charges (aircraft, passenger and security Operating result airport companies. We create sustainable value made up for the most part of airport charges, charges) and concession fees (paid by oil companies for the right to for our stakeholders by developing AirportCities concession fees, parking fees, retail sales, EUR 45 million provide aircraft refuelling services). and by positioning Amsterdam Airport Schiphol rents and leases, and income from our (-0.5% vs ‘09) as Europe’s preferred airport. Schiphol ranks international activities. among the most effi cient transport hubs for air, rail and road connections and offers its Amsterdam Airport Schiphol is an important Consumers visitors and the businesses located at Schiphol contributor to the Dutch economy. It serves The activities of the Consumers business area comprise developing, the services they require 24 hours a day, as one of the home bases for Air France-KLM Revenue granting and managing concessions for shops, food service outlets, seven days a week.