Schiphol Group 2014 Interim Report

Continued growth in passenger numbers and cargo volume

On 17 July a tragic accident occurred with flight MH 17. It was a disaster that caused worldwide shock and dismay.Our thoughts are with the families of the passengers and crew.

  • Total revenue increased by 9.7% to EUR 712 million (2013: EUR 650 million), including the increase in revenue resulting from the acquisition of a remaining interest in a property fund (AREB C.V.). If this acquisition is excluded, revenue increased by 3.4% to EUR 672 million;

  • Total operating expenses increased by 2.1% to EUR 515 million. Adjusted for the AREB C.V. acquisition, the operating expenses decreased by 0.8%;

  • The net result is EUR 127 million (2013: EUR 110 million).

Key developments

  • Passenger numbers at Amsterdam Airport Schiphol rose by 4.2% to 25.7 million in the first half of 2014. The number of air transport movements at Amsterdam Airport Schiphol rose by 2.6% to 209,800. Cargo volumes increased to 802,000 tonnes (+8.8%).

  • The construction work for central security in the non-Schengen area and the new Hilton is in full swing. A significant part of the security filter in Departures 1 has now been renewed.

  • Schiphol acquired the remaining 38.85% interest in the property fund AREB C.V. on 17 March 2014, leading to full control of a portfolio of 17 strategic properties on Amsterdam Airport Schiphol.

  • The occupancy rate of Schiphol Group's total property portfolio is in line with the preceding year and was 87.1% as at 30 June 2014 (2013: 87.3%). There are signs of a slight upturn in the market.

  • Average retail spending per departing passenger in the shops after passport control at Amsterdam Airport Schiphol fell from EUR 16.23 to EUR 14.79. This is exerting downward pressure on concession income and retail sales. Parking revenues increased.

  • The share in results of associates decreased from EUR 40 million in the first half of 2013 to EUR 18 million in the first half of 2014, mainly as a result of the negative value development of the Brisbane Airport interest rate derivatives. Changes in value of this nature lead to volatility in the share in results of associates, while the underlying results are much more stable.

  • A phased development of Lelystad Airport is necesarry in order to accommodate selective growth at Schiphol. For this purpose, Schiphol Group has drawn up the Lelystad Airport Business Plan and applied for an Airport Decree.

Response from Jos Nijhuis, Schiphol Group President & CEO

"We are once again experiencing positive growth in terms of both passengers and cargo. This trend seems set to continue, thanks to the daily efforts of all our business partners at the airport. To further consolidate the international competitiveness of the Mainport, Amsterdam Airport Schiphol is investing around EUR 1.5 million each day in the quality of its services and facilities. The first projects under the Master Plan have become operational. The new state-of-the-art security filter in Departure Hall 1 has recently been opened. Work on implementing central security is on schedule. Schiphol's healthy growth, cost containment and low interest rates have allowed us to propose a reduction in airport charges as of 1 April 2015. We expect this reduction to exceed -5%."