Strong passenger growth calls for substantial investments

Schiphol Group 2016 Interim Report

Today, 26 August 2016, Schiphol Group publishes its interim figures. Revenue in the first half year 2016 of 687 million euros is comparable to the same period in 2015 (HY 2015: 684 million euros). The effect of the increase in passenger numbers on revenue (+9.9% at Amsterdam Airport Schiphol) is offset by an 11.6% reduction in airport charges as of 1 April 2016. Other income and fair value gains on investment property decreased from 84 million euros in HY 2015 to 15 million euros in HY 2016. The decrease in other income was caused by the one-off result on the sale of a 60% stake in Schiphol Airport Retail ('SAR') of 50 million euros in 2015. The increase in the value of investment property had a positive effect of 15 million euros (HY 2015: 34 millioneuros). Operating expenses increased by 2.6% to EUR 412 million. This increase is caused by the substantial growth in the number of passengers and the associated operational measures to facilitate this growth.Depreciation and amortisation increased from 103 million euros to 118 million euros due to completion of several large projects. In line with the published outlook and the developments outlined above, the net resultfor the first half of 2016 fell by 40.6% to 121 million euros (HY 2015: 203 million euros).

Schiphol Group President and CEO Jos Nijhuis: "The strong growth in passenger numbers, to over 63 million this year, reflects the strength of Mainport Schiphol. However, this position cannot be taken for granted. The geopolitical and economic climate is uncertain and our competitors are not standing still. Moreover, the strong growth in passenger numbers means that Schiphol is reaching the limits of its capacity and that quality is under pressure. Unfortunately this is sometimes noticeable to passengers. In order to continue providing optimal services to passengers and airlines in the future and secure our position, we will substantially increase investments in capacity expansion, quality and accessibility, from 400 million euros to 600 million euros per year, on average, over the next years.”

Key developments

• Passenger volumes at Amsterdam Airport Schiphol increased by 9.9% to 29.7 million. The number of air transport movements at Amsterdam Airport Schiphol rose by 5.9% to 228,630. Cargo volumes increased to 796,801 tonnes (+1.6%).

• Schiphol is the world's number two hub airport according to the 'Connectivity Report 2016' compiled by SEO and commissioned by Airports Council International.

• In March 2016, the shareholders of Schiphol Group approved the development and construction of a new terminal and pier at Schiphol – 'Area A' – that will lay the foundation for capacity growth at Schiphol in the longer term.

• Average retail spend per departing passenger in the shops behind the security checks at Amsterdam Airport Schiphol fell from 14.66 euros to 13.70 euros (-6.5%). Average spend per passenger in food & beverage rose from 5.59 to 5.91 euros (+5.8%).

• The renewed Departure Lounge 2 was officially opened on 1 July 2016.

• In April 2016, a new covered car park opened at P3, adding 2,650 parking spaces for long-term parking. This facility largely (90%) consists of reusable steel and concrete and is equipped with solar panels and LEDlighting.

• The occupancy rate of Schiphol Group’s total real estate portfolio was 87.3% as at 30 June 2016 (HY 2015:88.2%).

• In June 2016, Lelystad Airport awarded contracts for the construction of a new terminal and integrated services for the airport. Construction is scheduled to begin in early 2017. The first passengers are expectedto depart from the new leisure airport in the course of 2018.

For the complete press release on Schiphol Group’s Interim Results see PDF.