Page 67 - Annual_Report_2016
P. 67
aia.gr Annual Report 2016
Notes to the Financial Statements
1. Incorporation & activities of the Company
Athens International Airport S.A. (the Company) is active in the financing, construction and operation of civil
airports and related activities. As a civil airport operator the Company manages the Athens International
Airport at Spata, Greece. The Company is a Societe Anonyme incorporated and domiciled in Greece. The
address of its registered office is Spata, Attica 190 19.
The Company was established on 31 July 1995 by the Greek State & Private Investors for the purpose of
the finance, construction, operation and development of the new international airport at Spata Attica. In
exchange for the finance, construction, operation and development of the airport the Greek State granted
the Athens International Airport S.A. a 30 year’s concession commencing on 11 June 1996. At the end
of the concession arrangement (11 June 2026), subject to the stipulations of Article 33 of the ADA and
without prejudice to all rights and obligations then having accrued to the Greek State and/or the Company,
the airport together with all usufruct additions will revert to the Greek State, which will enjoy all rights
of ownership over these without payment of any kind and clear of any security, unless the concession
arrangement is renewed as provided by the Article 4.2 of the ADA.
Pursuant to Article 4.2 of the ADA, the Hellenic Republic Asset Development Fund (HRADF) invited AIA in
December 2015 to enter into discussions for the concession extension. Following AIA’s Board of Directors
relevant approval, AIA and its technical, legal and financial advisors exchanged the necessary information
with the relevant teams of HRADF and entered into corresponding discussions for the extension of the
Airport Company’s concession period. In May 2017, the BoD of HRADF approved the draft ADA Extension
Agreement and invited AIA to submit its financial offer on the Concession Extension. AIA’s financial offer
was finally approved by the BoD of HRADF on 30 May 2017 and the offer was affirmed by the Extraordinary
General Meeting of AIA’s shareholders on 1 June 2017. Nevertheless, the Concession Extension process is
still underway and completion and effectiveness are subject to the execution of the agreements and the
satisfaction of all conditions contained therein.
Therefore, upon the effectiveness of the ADA Concession Extension Agreement, the Company will undertake
significant short term financial obligations against HRADF. The current assumption is that these financial
obligations will be covered by the Company’s own cash funds. The additional financial obligations in connection
with the concession extension in combination with the rest of the financial obligations towards third parties
need to be addressed through the short term dividend policy. As a consequence of the above, the 2016
Financial Statements as approved by the Board of Directors on 30 March 2017, and for which an Independent
Auditor’s Report has been issued on 30 March 2017, were amended to reflect the updated proposal of the
Board for the distribution of dividends for the year 2016, that was originally proposed at €4.19 per share and
which is now revised at €1.35 per share. Reference is made below to the changes that have been made in the
2016 Financial Statements, to reflect the new developments incurred after the balance sheet date, as follows:
a) Statement of Financial Position for the year ended 31 December 2016
b) Note 5.6 “Income tax expense”
c) Note 5.19 “Retained earnings”
d) Note 5.23 “Income & deferred tax liabilities”
e) Note 5.29 “Contingent liabilities” and
f) Note 5.32 “Events after the balance sheet date”
The Company’s return from air activities is capped at 15.0% on the capital allocated to air activities. In the
event that the Company’s actual compounded cumulative return exceeds 15.0%, in 3 out of any 4 consecutive
financial periods, the Company is obliged to pay any excess return to the Greek State.
The terms and conditions of the concession for the Athens International Airport are stipulated in the Airport
Development Agreement (“ADA”). The ADA and the Company’s Articles of Association were ratified and
enacted under Law 2338/14.9.1995.
The Company commenced its commercial operations in March 2001 following a construction period of
approximately 5 years initiated in September 1996.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
20 of 57
Notes to the Financial Statements
1. Incorporation & activities of the Company
Athens International Airport S.A. (the Company) is active in the financing, construction and operation of civil
airports and related activities. As a civil airport operator the Company manages the Athens International
Airport at Spata, Greece. The Company is a Societe Anonyme incorporated and domiciled in Greece. The
address of its registered office is Spata, Attica 190 19.
The Company was established on 31 July 1995 by the Greek State & Private Investors for the purpose of
the finance, construction, operation and development of the new international airport at Spata Attica. In
exchange for the finance, construction, operation and development of the airport the Greek State granted
the Athens International Airport S.A. a 30 year’s concession commencing on 11 June 1996. At the end
of the concession arrangement (11 June 2026), subject to the stipulations of Article 33 of the ADA and
without prejudice to all rights and obligations then having accrued to the Greek State and/or the Company,
the airport together with all usufruct additions will revert to the Greek State, which will enjoy all rights
of ownership over these without payment of any kind and clear of any security, unless the concession
arrangement is renewed as provided by the Article 4.2 of the ADA.
Pursuant to Article 4.2 of the ADA, the Hellenic Republic Asset Development Fund (HRADF) invited AIA in
December 2015 to enter into discussions for the concession extension. Following AIA’s Board of Directors
relevant approval, AIA and its technical, legal and financial advisors exchanged the necessary information
with the relevant teams of HRADF and entered into corresponding discussions for the extension of the
Airport Company’s concession period. In May 2017, the BoD of HRADF approved the draft ADA Extension
Agreement and invited AIA to submit its financial offer on the Concession Extension. AIA’s financial offer
was finally approved by the BoD of HRADF on 30 May 2017 and the offer was affirmed by the Extraordinary
General Meeting of AIA’s shareholders on 1 June 2017. Nevertheless, the Concession Extension process is
still underway and completion and effectiveness are subject to the execution of the agreements and the
satisfaction of all conditions contained therein.
Therefore, upon the effectiveness of the ADA Concession Extension Agreement, the Company will undertake
significant short term financial obligations against HRADF. The current assumption is that these financial
obligations will be covered by the Company’s own cash funds. The additional financial obligations in connection
with the concession extension in combination with the rest of the financial obligations towards third parties
need to be addressed through the short term dividend policy. As a consequence of the above, the 2016
Financial Statements as approved by the Board of Directors on 30 March 2017, and for which an Independent
Auditor’s Report has been issued on 30 March 2017, were amended to reflect the updated proposal of the
Board for the distribution of dividends for the year 2016, that was originally proposed at €4.19 per share and
which is now revised at €1.35 per share. Reference is made below to the changes that have been made in the
2016 Financial Statements, to reflect the new developments incurred after the balance sheet date, as follows:
a) Statement of Financial Position for the year ended 31 December 2016
b) Note 5.6 “Income tax expense”
c) Note 5.19 “Retained earnings”
d) Note 5.23 “Income & deferred tax liabilities”
e) Note 5.29 “Contingent liabilities” and
f) Note 5.32 “Events after the balance sheet date”
The Company’s return from air activities is capped at 15.0% on the capital allocated to air activities. In the
event that the Company’s actual compounded cumulative return exceeds 15.0%, in 3 out of any 4 consecutive
financial periods, the Company is obliged to pay any excess return to the Greek State.
The terms and conditions of the concession for the Athens International Airport are stipulated in the Airport
Development Agreement (“ADA”). The ADA and the Company’s Articles of Association were ratified and
enacted under Law 2338/14.9.1995.
The Company commenced its commercial operations in March 2001 following a construction period of
approximately 5 years initiated in September 1996.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
20 of 57
