Page 52 - Annual Report 2013
P. 52
Financial Statements
• The Statement of Financial Position of 31 December 2013 reflects total Assets of €1,23 billion. The
value of the Airport Company’s Non-Current Assets (€0,97 billion) represents 79% of Total Assets,
indicating that AIA remains a capital intensive company.
• All Fixed Assets are recorded in the Fixed Assets Register and are free of any encumbrances apart
from the conditional assignment of the Usufruct extended since 1996 in favour of the Lenders. Fixed
Assets were depreciated at rates reflecting their estimated useful lives and the legal limits on their use
as provided by the ADA. The value of the Usufruct of the Land that was assigned by the Greek State for
the development and operation of the Airport, the present value of the Grant of Rights Fee and the value
of the Intangible Assets are equally depreciated over the operation of the 25-year concession period.
Investment in Associates consists of €3,25 million and represents the carrying amount of the Compa-
ny’s participation in the equity of Athens Airport Fuel Pipeline Company S.A.
• The Airport Company’s Closing Cash position is €35,0 million, not including investments in
held-to-maturity financial assets, which amounted to €220,5 million. The cash surplus is invested in
short term time deposits and highly rated supranational euro-securities with maturity up to two years.
• The Airport Company is exposed to financial risks such as to price, credit, and liquidity and concen-
tration risks. The nature of the risks as well as the scope and the policies of the Airport Company for the
management of the financial risks are presented in Section 3 of the Notes to the Financial Statements.
Other risks and uncertainties related to tax and municipal charges disputes with the Greek State and
with two of the surrounding municipalities are analytically referred to the note 5.29 of the Notes to the
Financial Statements.
• Regarding events after the balance sheet date reference is made in note 5.31 of the Financial State-
ments.
5. 2014 Outlook
In December, the Board of Directors approved the 2013 Business Plan Update. It was prepared amidst
a volatile macroeconomic situation and at the same time, during a period of significant developments in
the global and Greek aviation market. Indeed, and as the Business Plan assesses, a number of factors
are likely to drive changes in our future business environment:
• Firstly, the economic conditions, which continue to suffer from the sovereign crisis and recession;
however certain of the economic indicators show clear signs of stabilisation in view of a potential
upcoming recovery.
• As a matter of fact, over the last months we have seen clear indications of improvement in the tourism
flows in Athens and Greece in general, marking the re-emergence of Athens in particular as a compet-
itive and attractive tourism destination. This comes after a series of blemishes in the city’s reputation
and competitive position. With tourism being the number one economic asset of the country, as the
recent study of McKinsey on the Greek economy has shown, the foreseen realisation of major devel-
opments in the Attica coastal line as well as on-going efforts for the advancement of the city-break and
cruise tourism sectors can have a very significant long-term effect in the Athens destination market and
of course, in our airport’s traffic.
• Evidently, this upturn is confirmed by the recent airline developments. Our home-carrier Aegean/
Olympic as well as numerous other airlines have increased their capacity and connections to a very
significant effect within 2014. Furthermore, the Low-Cost-Carrier Ryanair has based two aircraft in
Athens and has commenced operations since April 2014 serving 6 domestic and international destina-
tions. This development is clearly demonstrating the increasing demand potential at the Athens market
certifying, at the same time the dynamic recovery of the brand image of Athens.
• This evident shift from a low capacity/high yield market to a more rational balance of capacity vs.
demand, will result in a short- to mid-term passenger traffic increase. Of course, the longer term effect
will be subject not only to the macroeconomic developments, but also to the strategic plans of our key
carriers.
11 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
• The Statement of Financial Position of 31 December 2013 reflects total Assets of €1,23 billion. The
value of the Airport Company’s Non-Current Assets (€0,97 billion) represents 79% of Total Assets,
indicating that AIA remains a capital intensive company.
• All Fixed Assets are recorded in the Fixed Assets Register and are free of any encumbrances apart
from the conditional assignment of the Usufruct extended since 1996 in favour of the Lenders. Fixed
Assets were depreciated at rates reflecting their estimated useful lives and the legal limits on their use
as provided by the ADA. The value of the Usufruct of the Land that was assigned by the Greek State for
the development and operation of the Airport, the present value of the Grant of Rights Fee and the value
of the Intangible Assets are equally depreciated over the operation of the 25-year concession period.
Investment in Associates consists of €3,25 million and represents the carrying amount of the Compa-
ny’s participation in the equity of Athens Airport Fuel Pipeline Company S.A.
• The Airport Company’s Closing Cash position is €35,0 million, not including investments in
held-to-maturity financial assets, which amounted to €220,5 million. The cash surplus is invested in
short term time deposits and highly rated supranational euro-securities with maturity up to two years.
• The Airport Company is exposed to financial risks such as to price, credit, and liquidity and concen-
tration risks. The nature of the risks as well as the scope and the policies of the Airport Company for the
management of the financial risks are presented in Section 3 of the Notes to the Financial Statements.
Other risks and uncertainties related to tax and municipal charges disputes with the Greek State and
with two of the surrounding municipalities are analytically referred to the note 5.29 of the Notes to the
Financial Statements.
• Regarding events after the balance sheet date reference is made in note 5.31 of the Financial State-
ments.
5. 2014 Outlook
In December, the Board of Directors approved the 2013 Business Plan Update. It was prepared amidst
a volatile macroeconomic situation and at the same time, during a period of significant developments in
the global and Greek aviation market. Indeed, and as the Business Plan assesses, a number of factors
are likely to drive changes in our future business environment:
• Firstly, the economic conditions, which continue to suffer from the sovereign crisis and recession;
however certain of the economic indicators show clear signs of stabilisation in view of a potential
upcoming recovery.
• As a matter of fact, over the last months we have seen clear indications of improvement in the tourism
flows in Athens and Greece in general, marking the re-emergence of Athens in particular as a compet-
itive and attractive tourism destination. This comes after a series of blemishes in the city’s reputation
and competitive position. With tourism being the number one economic asset of the country, as the
recent study of McKinsey on the Greek economy has shown, the foreseen realisation of major devel-
opments in the Attica coastal line as well as on-going efforts for the advancement of the city-break and
cruise tourism sectors can have a very significant long-term effect in the Athens destination market and
of course, in our airport’s traffic.
• Evidently, this upturn is confirmed by the recent airline developments. Our home-carrier Aegean/
Olympic as well as numerous other airlines have increased their capacity and connections to a very
significant effect within 2014. Furthermore, the Low-Cost-Carrier Ryanair has based two aircraft in
Athens and has commenced operations since April 2014 serving 6 domestic and international destina-
tions. This development is clearly demonstrating the increasing demand potential at the Athens market
certifying, at the same time the dynamic recovery of the brand image of Athens.
• This evident shift from a low capacity/high yield market to a more rational balance of capacity vs.
demand, will result in a short- to mid-term passenger traffic increase. Of course, the longer term effect
will be subject not only to the macroeconomic developments, but also to the strategic plans of our key
carriers.
11 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
