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aia.gr Annual Report 2016
million or 3.5% compared to the previous year, reaching the level of €269.8 million.
Depreciation charge was €74.2 million in 2016, similar to the corresponding charge in 2015 of €74.4 million.
Net financial expenses stood at €34.2 million presenting a decrease of €4.4 million or 11.4% versus 2015
mainly due to the gradual reduction of the outstanding balance of the AIA’s debt.
Profit before Tax reached the amount of €189.1 million. After accounting for the aggregate charge for
income tax of €56.7 million, the statutory and other reserves of €6.6 million and the prior year’s retained
earnings of €0.1 million, there remains a distributable profit of €125.8 million. Given the additional short
term financial obligations for the Airport Company arising from the recent positive developments in
connection with the concession extension the Board proposes to the shareholders a dividend distribution
of €40.5 million or €1.35 per ordinary share.
The Statement of Financial Position of 31 December 2016 reflects total Assets of €1.2 billion. The value of
AIA’s Non-Current Assets (€0.69 billion) represents 59.0% of Total Assets, indicating that AIA still 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 fixed component 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 AIA’s participation
in the equity of Athens Airport Fuel Pipeline Company S.A.
The AIA’s Closing Cash position is €285.8 million, not including investments in held-to-maturity which
amounted to €87.5 million. The cash surplus is invested in short term time deposits and highly rated
supranational and corporate euro-securities with maturity up to two years.
AIA is exposed to financial risks such as cash flow and fair value interest rate risk, price, credit and liquidity
and to concentration risks. The company invests its cash and cash equivalents in short term deposits and
held-to-maturity highly liquid financial assets minimising its exposure to interest rates volatility. As regards
the borrowings, these are with fixed interest rates eliminating any potential adverse impact on Company’s
financial performance from the fluctuation of interest rates. In order to cover the credit risk, the company
obtains adequate securities from customers, as per the applied Credit Policy. The liquidity risk is managed
through efficient cash management involving cash forecasting and investments strategy that ensures
the sufficient level of available cash to meet operational needs, to cover the debt service obligations
and to finance investments complying with the debt covenants in terms of creditability and maturity of
investments. The nature of the risks as well as the scope and the company policies for managing financial
risks are presented in Section 3 of the Notes to the Financial Statements. Other risks and uncertainties
related to tax disputes with the Greek State and municipal charges disputes with two of the surrounding
municipalities are analytically referred to in note 5.29 of the Notes to the Financial Statements.
Regarding events after the balance sheet date reference is made in note 5.32 of the Financial Statements.
5. 2017 Outlook
Following a successful 2016, the prospects for the year 2017 are promising, nevertheless with the presence
of a number of challenges:
• During the period 2014-16 passenger traffic grew at a cumulative 60% which is an outstanding growth
for a metropolitan airport, given also the developments in the macroeconomic environment. For 2017 we
expect a moderate growth rate. There are a number of factors corroborating this expectation:
o The announced plans of home carriers which plan to increase their international network, reducing
however their capacity in the domestic market. Nevertheless, their load factors are expected to be
maintained at high levels. Furthermore, we also anticipate a healthy capacity increase from our visiting
carriers.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
12 of 57
million or 3.5% compared to the previous year, reaching the level of €269.8 million.
Depreciation charge was €74.2 million in 2016, similar to the corresponding charge in 2015 of €74.4 million.
Net financial expenses stood at €34.2 million presenting a decrease of €4.4 million or 11.4% versus 2015
mainly due to the gradual reduction of the outstanding balance of the AIA’s debt.
Profit before Tax reached the amount of €189.1 million. After accounting for the aggregate charge for
income tax of €56.7 million, the statutory and other reserves of €6.6 million and the prior year’s retained
earnings of €0.1 million, there remains a distributable profit of €125.8 million. Given the additional short
term financial obligations for the Airport Company arising from the recent positive developments in
connection with the concession extension the Board proposes to the shareholders a dividend distribution
of €40.5 million or €1.35 per ordinary share.
The Statement of Financial Position of 31 December 2016 reflects total Assets of €1.2 billion. The value of
AIA’s Non-Current Assets (€0.69 billion) represents 59.0% of Total Assets, indicating that AIA still 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 fixed component 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 AIA’s participation
in the equity of Athens Airport Fuel Pipeline Company S.A.
The AIA’s Closing Cash position is €285.8 million, not including investments in held-to-maturity which
amounted to €87.5 million. The cash surplus is invested in short term time deposits and highly rated
supranational and corporate euro-securities with maturity up to two years.
AIA is exposed to financial risks such as cash flow and fair value interest rate risk, price, credit and liquidity
and to concentration risks. The company invests its cash and cash equivalents in short term deposits and
held-to-maturity highly liquid financial assets minimising its exposure to interest rates volatility. As regards
the borrowings, these are with fixed interest rates eliminating any potential adverse impact on Company’s
financial performance from the fluctuation of interest rates. In order to cover the credit risk, the company
obtains adequate securities from customers, as per the applied Credit Policy. The liquidity risk is managed
through efficient cash management involving cash forecasting and investments strategy that ensures
the sufficient level of available cash to meet operational needs, to cover the debt service obligations
and to finance investments complying with the debt covenants in terms of creditability and maturity of
investments. The nature of the risks as well as the scope and the company policies for managing financial
risks are presented in Section 3 of the Notes to the Financial Statements. Other risks and uncertainties
related to tax disputes with the Greek State and municipal charges disputes with two of the surrounding
municipalities are analytically referred to in note 5.29 of the Notes to the Financial Statements.
Regarding events after the balance sheet date reference is made in note 5.32 of the Financial Statements.
5. 2017 Outlook
Following a successful 2016, the prospects for the year 2017 are promising, nevertheless with the presence
of a number of challenges:
• During the period 2014-16 passenger traffic grew at a cumulative 60% which is an outstanding growth
for a metropolitan airport, given also the developments in the macroeconomic environment. For 2017 we
expect a moderate growth rate. There are a number of factors corroborating this expectation:
o The announced plans of home carriers which plan to increase their international network, reducing
however their capacity in the domestic market. Nevertheless, their load factors are expected to be
maintained at high levels. Furthermore, we also anticipate a healthy capacity increase from our visiting
carriers.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
12 of 57
