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Transcript of Copenhagen Airports A/S · Ole Rendbæk Deputy Chairman – born on 7 June 1943 Ole Rendbæk...
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Copenhagen Airports A/SAnnual Report 2001
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NO
RDIC ECOLABEL
541 Printed matter 023
Published by: Copenhagen Airports A/S
Print run: 2.000
Photo: Per Brogaard
Jens Lindhe
Translation: Fokus Translations
Cover: Hanne Varmings Girls at the Airport
Layout and graphic production: Saloprint a/s
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3
Contents
Supervisory Board 6
Executive Board 8
Consolidated fi nancial highlights 10
Key ratios 14
Directors report 16
Accounting policies 34
Profi t and loss account 41
Balance sheet 42
Cash fl ow statement 44
Notes to the accounts 45
Signatures and auditors report 56
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The modernist airport terminal designed by
Danish architect Vilhelm Lauritzen in 1939
was relocated 60 years later to make room
for the expansion of Copenhagen Airport at
the east end of the airport compound. The
building was subsequently restored and
refurbished and now contains training and
offi ce facilities; it is also used for receiving
VIPs and other special arrangements.
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6
Supervisory Board
Vagn Andersen
Chairman - born on 20 October 1929
Vagn Andersen, R1 . OBE, M.Sc. in Economics and Business
Administration. He has been chairman of Copenhagen Air-
ports A/S since the conversion to a public limited company in
1990. He participated actively in CPHs initial public offering
in 1994 and the subsequent sales of shares by the Danish
State in 1996 and 2000.
Vagn Andersen was CEO of DOMI in 1971-80, and CEO of
Bang & Olufsen in 1981-91. He was chairman of Novo Nor-
disk A/S and the Novo Nordisk Foundation until 2000, of Bar-
clays Denmark A/S in 1984-91, and a board member of the
British Import Union in 1978-99.
Ole Rendbk
Deputy Chairman born on 7 June 1943
Ole Rendbk graduated in engineering in 1967 and became
a reserve offi cer in the Royal Danish Marine in 1969. He
worked for Lloyds Register of Shipping in London in
1969-70, for the Odense Steel Shipyard in 1970-71, and for
the Directorate General of the Danish State Railways in
1971-88. From 1988-93, he was CEO of Danyard A/S, in
1989-93 CEO of Danyard Aalborg A/S and in 1993-98 CEO
of Krger A/S. Since 1998, he has been CEO of Scandlines
Danmark A/S and Group CEO of Scandlines AG.
Ole Rendbk has been a Board member of CPH since 1993
and is also deputy chairman of Mols-linien A/S and a board
member of Det Danske Europa Institut A/S.
Lars Nrby Johansen
Born on 16 August 1949
Lars Nrby Johansen holds a degree in social science from
the University of Aarhus from 1973. He was an assistant pro-
fessor and later associated professor in political science at
the University of Odense in 1974-83. During this period, he
was also an assistant professor at the European Universitys
Institute in Florence and a visiting professor at Harvard Uni-
versity. In 1983, he became a consultant in management at
the Danish School of Public Administration, and in 1985 he
became a deputy director of the Danish Insurance Associa-
tion. From 1986-88, he was deputy director and general
Su
pe
rvis
ory
Bo
ard
manager, non-life insurance, with Baltica. When Baltica ac-
quired Falcks Redningskorps in 1988, he became CEO of
Falck, and from 2000, Group CEO of Group 4 Falck follow-
ing the merger of Falck and the British company Group 4.
Lars Nrby Johansen has been a Board member of CPH since
2000. He was chairman of the board of the Carl Bro Group
in 1995-2000, he is deputy chairman of DONG A/S and IC
Companys A/S and a board member of William Demant
Holding A/S and Oticon A/S.
Jette Wigand Knudsen
Born on 22 September 1951
Jette Wigand Knudsen holds an M.Sc. in Pharmacy from 1976
and became a brewer in 1978. She joined Carlsberg in 1978,
became head of production in 1986, and was promoted to
CEO of Fredericia Brewery in 1991. She remained CEO of
Fredericia Brewery when the company merged with the
parent company, Carlsberg A/S, in 1998. In 2000, she became
supply chain director of Carlsberg Danmark A/S, responsible
for production, purchasing, planning and quality assurance.
Jette Wigand Knudsen was nominated Business Woman of
the Year in 1992 and was chairman of the Green Network
in the Triangle Region in 1991-94, a board member of the
Danish Employers Confederation, Lilleblt Region 1993-95,
an external faculty board member of natural and technical
sciences of the University of Southern Denmark in 1993-98,
a member of the assembly of representatives of the Danish
National Bank from 1995 and a member of the Danish Acad-
emy of Technical Sciences from 1997. She has been a Board
member of CPH since 1997 and chairman of the board of
the Scandinavian School of Brewing since 2001.
Kurt Bligaard Pedersen
Born on 19 October 1959
Kurt Bligaard Pedersen holds an M.Sc. in Political Science
from the University of Aarhus. He was an academic offi cer
with the Danish Social Democratic Party in 1988-92, and then
head of division and later deputy permanent secretary in the
Danish Ministry of Finance in 1992-96. He became fi nance di-
rector of the Municipality of Copenhagen in 1996-97 and,
following a restructuring, CEO of the Finance Division of the
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Municipality in 1998-2000. He was CEO of Falck Danmark
A/S in 2000-01. From 1 February 2002 he has been execu-
tive vice president, business development, of DONG A/S.
Kurt Bligaard Pedersen has been a Board member of CPH
since 1992 and is also a member of the boards of Bella
Center A/S, BRF Kredit A/S and Muusmann A/S.
Inge Agnete Thygesen
Born on 28 May 1935
Inge Agnete Thygesen holds an M.Sc. in Insurance Science
from 1960 and a D.Sc. of Economics from 1971. Dr. Thy-
gesen worked for the Institute of Mathematical Statistics and
Operational Analysis at the Technical University of Denmark
in 1963-72; as an associate professor from 1965. Her thesis
on investment planning was based concretely on a number
of major traffi c investments (road network, bridges and air-
ports). In 1972, Dr. Thygesen became a consultant to the De-
partment of the Budget, and in 1980-84 head of planning
for the department. Dr. Thygesen was then permanent secre-
tary at the Ministry of Education in 1984-97 and has acted as
a senior adviser to the Ministry of Finance since 1997 where
she was concurrently appointed a Board member of CPH.
Board member of Sund og Blt A/S from 1991, Ris Na-
tional Laboratory in 1993-99 and CSC Danmark A/S in
1997-99. Chairman of UNI-C in 1997-2000, the Danish
School of Public Administration since 1998, the Mortgage
Bank and Financial Administration Agency of the Kingdom
of Denmark since 1999 and the Danish University of Educa-
tion since 2000.
Employee representatives
John Stig Andersen
Born on 26 January 1957
John Stig Andersen is a controller responsible for the oper-
ating and capital budgets as well as property administration.
He joined CPH in 1975 and has been an employee repre-
sentative on the Board since 1995.
Anita Doris Rasmussen
Born on 26 July 1942
Anita Doris Rasmussen is a secretary. She is also a union
representative of the members of the Union of Commercial
and Clerical Employees at CPH and deputy chairman of the
joint consultation committee. She joined CPH in 1965 and
has been an employee representative on the Board since
1991.
Carsten Lennie Winther
Born on 1 July 1967
Carsten Lennie Winther is a semi-skilled worker. He works
on a number of airside support tasks including snow clear-
ing, baggage sorting and shielding. He is also a shop stew-
ard for airside support and deputy chairman of the Joint
Club of Unions. He joined CPH in 1990 and has been an
employee representative on the Board since 1999.
Vagn Andersen Ole Rendbk Lars Nrby Johansen Jette Wigand Knudsen
Inge Agnete Thygesen Anita Doris RasmussenJohn Stig Andersen Carsten Lennie Winther
Kurt Bligaard Pedersen
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Copenhagen Airports A/S
8
Execu
tive B
oard
Executive Board
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9
Niels Boserup*
President and CEO born on 14 June 1943
Niels Boserup started his career with CPH in 1991 after the
conversion of the Copenhagen Airports Authority into a
government-owned company, Copenhagen Airports A/S. He
has been in charge of the company during the strong ex-
pansion of Copenhagen Airport that has taken place since
the privatisation of the company. Before joining CPH, Niels
Boserup was a director of Codan Insurance, and he is a jour-
nalist by background.
Niels Boserup is chairman of William Demant Holding A/S,
Oticon A/S, Jyllands-Posten A/S and CADI A/S (Copenhagen
Airport Development International A/S). He is deputy chair-
man of the Wonderful Copenhagen Foundation and a
board member of Newcastle International Airport Ltd., the
European airline organisation ACI Europe, TK Development
A/S and the Jyllands-Posten Foundation.
Kjeld Binger*
Executive Vice President, CPH International born on
21 October 1954
Kjeld Binger is a building engineer by background. He joined
Copenhagen Airports A/S in 1994 as head of the Planning
and Development Department and assumed responsibility
for the airports master plan, the development and expan-
sion of the terminal complex and related activities. In 1997,
he became Senior Vice President and in 2000 CEO of CADI
A/S, the subsidiary responsible for the CPHs international ac-
tivities. Kjeld Binger was in charge of the acquisition of the
concession rights to operate nine airports in Mexico in 1998
and CPHs 49% interest in the airport in Newcastle in 2001.
Kjeld Binger is chairman of Copenhagen Airports Hotel and
Real Estate Company A/S and ASUR (Grupo Aeroportuario
del Sureste S.A. de C.V.) and a board member of ITA (Inver-
siones y Tecnicas Aeroportuarias, S.A. de C.V.) and Newcas-
tle International Airport Ltd.
Torben Thyregod
Senior Vice President, CFO born on 1 October 1963
Torben Thyregod holds an M.Sc. in Business Administration
and Auditing from 1990. He worked for Pricewaterhouse-
Coopers in 1990-94 and then joined CPH as chief account-
ant. In 1997, Torben Thyregod became fi nance manager. He
holds an E*MBA from 1998 from the Scandinavian Interna-
tional Management Institute (SIMI). He became chief fi nan-
cial offi cer in 2000 responsible for Group fi nance, human
resources and information technology.
Furthermore, Torben Thyregod is CEO and a board member
of the Copenhagen Airports Hotel and Real Estate Com-
pany A/S and a board member of CADI A/S.
Peter Rasmussen
Senior Vice President, Company Secretary born on
13 September 1949
Peter Rasmussen is a Master of Law from 1978 and worked
for the Danish Ministry of Transport in 1978-86. He joined
the Copenhagen Airports Authority in 1986 as company
secretary and assistant to Knud Heinesen, who was CEO of
the Authority. He became head of secretariat and vice presi-
dent in 1995, senior vice president in 2000 responsible for
the Group secretariat and Group legal affairs, investor rela-
tions, environmental affairs and quality assurance. He partic-
ipated in the conversion of The Copenhagen Airports Au-
thority into a government-owned company in 1990 and
CPHs initial public offering in 1994 and the later sales of
shares by the Danish State.
Peter Rasmussen is chairman of Airport Coordination Den-
mark A/S and a board member of Copenhagen Airports
Hotel and Real Estate Company A/S and CADI A/S.
Niels Boserup Kjeld Binger Torben Thyregod Peter Rasmussen
* Registered with the Danish Commerce and Companies Agency under the provisions of the Danish Companies Act.
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Profi t and loss account (DKK million) 2001 2000 1999 1998 1997
Net revenue 1,962 1,841 1,729 1,604 1,499
Total net revenue 1,996 1,871 1,763 1,656 1,533
Depreciation and impairment 445 407 356 305 286
Operating profi t 640 694 631 624 561
Net fi nancial expenses 192 120 104 94 71
Profi t before tax 490 590 535 530 489
Net profi t 341 437 371 389 323
Balance sheet (DKK million) 2001 2000 1999 1998 1997
Fixed assets 7,831 6,551 6,047 5,457 4,249
Current assets 482 407 471 345 257
Total assets 8,313 6,958 6,518 5,802 4,506
Shareholders equity 3,167 2,879 2,511 2,192 1,880
Capital investments 449 786 894 1,309 1,258
Long-term fi nancial investments 1,193 99 15 202 0
Cash fl ow statement (DKK million) 2001 2000 1999 1998 1997
Cash fl ow from operating activities 863 930 561 684 824
Cash fl ow from investing activities (1,697) (803) (1,154) (1,301) (1,284)
Cash fl ow from fi nancing activities 974 (104) 571 610 293
Cash and cash equivalents at year-end 181 41 18 39 46
Consolidated fi nancial highlights
Co
nso
lid
ate
d fi
na
nci
al
hig
hli
gh
ts
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Other liabilities
Loans
Provisions
Shareholders' equity
Cash and cash equivalents
Other assets
Trade debtors
Long-term financial assets
Tangible fixed assets
0
500
1,000
1,500
0100999897
Net revenue(DKK million)
Assets
Liabilities and equity
-
Pier C houses the airports largest area for
non-Schengen passengers. The building was
designed by architects Holm & Grut, and artist
Jens-Flemming Srensen created the fountain
(right), which the passengers use as a resting
place and meeting point, as intended.
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Key ratios 2001 2000 1999 1998 1997
Operating margin 32.6% 37.7% 36.5% 38.9% 37.4%
Asset turnover 0.30 0.29 0.29 0.32 0,38
Return on assets 9.8% 10.9% 10.7% 12.5% 14.1%
Return on equity 11.3% 16.2% 15.8% 19.1% 18.4%
Equity ratio 38.1% 41.4% 38.5% 37.8% 41.7%
Earnings per share of DKK 100 37.4 48.1 41.0 43.0 35.7
Cash earnings per share of DKK 100 86.3 93.0 80.4 76.6 67.3
Net asset value in DKK per share of DKK 100 348.0 316.4 277.5 242.3 207.7
Dividend in DKK per share of DKK 100 10.0 9.50 9.00 8.50 8.00
NOPAT margin 24.2% 28.2% 25.6% 28.1% 24.7%
Turnover rate of capital employed 0.30 0.33 0.35 0.41 0.48
ROCE 7.4% 9.3% 9.0% 11.4% 11.8%
Gearing 0.80 0.46 0.54 0.32 0.21
Key ratios
80
100
120
140
160
180
200
220
240
260
280
300
320
1994 1995 1996 1997 1998 1999 2000 2001 2002
CPH A/S KFX
Ke
y r
ati
os
CPH share price compared with the Copenhagen Stock Exchange KFX index
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15
Defi nitions of ratios
The defi nitions of ratios are in line with the recommendations made by the Danish Association of Financial
Analysts except for the ratios marked by an *, which are not defi ned by the Association.
Operating margin Operating profi t as a percentage of net revenue.
Asset turnover Net revenue divided by average operational assets.
Return on assets Operating profi t as a percentage of average operational assets.
Return on equity Net profi t divided by average shareholders equity.
Equity ratio Shareholders equity at year-end as a percentage of liabilities and
shareholders equity at year-end.
Earnings per share Net profi t divided by average number of shares.
Cash earnings per share Net profi t plus depreciation divided by average number of shares.
Net asset value per share Shareholders equity at year-end divided by number of shares at
year-end.
NOPAT margin Net profi t before net fi nancial expenses divided by net revenue.
Turnover rate of capital employed Net revenue divided by average shareholders equity plus aver-
age interest-bearing debt.
ROCE Net profi t before net fi nancial expenses divided by average
shareholders equity plus average interest-bearing debt.
Gearing Interest-bearing debt at year-end divided by market capitalisation
(share capital times market price at year-end).
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The consolidated accounts show a pre-tax profi t of
DKK 490.3 million for 2001. The Supervisory Board
considers the profi t to be acceptable in view of the
low economic growth throughout 2002 and devel-
opments in the state of world affairs following the
terrorist attacks in the US on 11 September, and
the related effect on the airline industry.
The Supervisory Board wishes to take this opportu-
nity to thank all employees for their excellent work
and high degree of commitment during a diffi cult
year for Copenhagen Airports.
Performance relative to latest
forecast
Consolidated profi t before tax for the year ended
31 December 2001 was DKK 490.3 million. This
represents an improvement of approximately 3%
over the forecast of DKK 475.0 million in the profi t
announcement for the nine months to 30 Septem-
ber 2001. The main reason for the improvement
was that traffi c at Copenhagen Airport was less
severely hit by the aftermath of the terrorist at-
tacks in the US in the fourth quarter than antici-
pated. The same applied to the activities in Mexico
and the UK, whereas the effect on the Groups
hotel was more severe in the fourth quarter than
expected.
Performance relative to last
year
Compared with the pre-tax profi t for 2000, a de-
cline of DKK 99.8 million or 16.9% was recorded.
Out of the total decline, DKK 43.5 million was at-
tributable to a fall in the parent companys operat-
ing profi t. As a result of the lower growth in the
number of passengers, the parent companys reve-
Directors report
0
100
200
300
400
500
0100999897
Profit before tax(DKK million)
0
100
200
300
400
Net profit(DKK million)
0100999897
Dir
ect
ors
re
po
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17
nue rose by DKK 20.7 million, which was signifi -
cantly less than originally expected. Operating
expenses increased by a total of DKK 64.2 million,
as expected, since expenses, which are in all essen-
tials related to capacity at the airport, are not vari-
able in the short term. Out of the total increase in
operating expenses, external expenses amounted
to DKK 11.1 million, staff costs to DKK 35.8 mil-
lion, and depreciation and impairment to DKK
17.3 million.
Another contributing factor to the lower profi t was
the Groups hotel activity, as the opening and oper-
ation of the Hilton Copenhagen Airport reduced
profi t for the year, as forecast. The hotels perform-
ance in 2001 was also signifi cantly affected by the
terrorist attacks in the US on 11 September, and
the subsidiary contributed to a reduction of Group
profi t by DKK 32.8 million compared with 2000.
In early May 2001, the Group acquired 49% of
the shares in NIAL Holdings Plc., the owner of the
operating company Newcastle International Air-
port Ltd. The investment contributed a net loss of
DKK 34.5 million in 2001, composed of a pre-tax
share of the companys profi t in the amount of
DKK 10.6 million and an increase in the parent
companys fi nancial expenses by DKK 45.1 million.
Shares of profi t from the Groups investments in
the Mexican airports contributed a profi t of
DKK 33.0 million in 2001, corresponding to a profi t
increase of DKK 14.8 million compared with 2000.
Events after the balance sheet
date
No signifi cant events have occurred after the end
of the fi nancial year, which the management be-
lieves would have a material impact on the evalua-
tion of the fi nancial statements of the Group and
the parent company.
Shareholders equity
Consolidated shareholders equity stood at DKK
2,879.1 million at the beginning of the year. After
giving effect to the years profi t, exchange differ-
ences and provision for the proposed dividend, the
Groups shareholders equity amounted to DKK
3,166.5 million at 31 December 2001.
0
500
1,000
1,500
2,000
2,500
3,000
0100999897
Shareholders equity (DKK million)
Retained profitReserve for net revaluation according to the equity methodShare capital
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The profi t for the year provided a return on equity
of 11.3% compared with 16.2% in 2000.
Dividend
The Supervisory Board intends to propose to the
Annual General Meeting, in accordance with the
adopted dividend policy, that the dividend be in-
creased from DKK 9.50 in 2000 to DKK 10.00 per
share for 2001. This represents a payout ratio of
26.7%.
The Supervisory Board has decided to change the
companys dividend policy to the effect that in fu-
ture the aim will be a minimum payout ratio of
25%. The payout ratio will be fi xed so as to allow
for shareholders interests, including the companys
investment plans and capital structure.
Profi t and loss account
Revenue
Traffi c revenue
Traffi c revenue for 2001 amounted to DKK 1,118.8
million, corresponding to a 0.3% increase over the
level in 2000.
The number of passengers at Copenhagen Airport
was 0.1% higher than in 2000, when adjusted for
the catamaran traffi c to and from Malmo, Sweden,
which was discontinued in August 2000. Traffi c in
2001 was signifi cantly affected by the aftermath of
the terrorist attacks in the US on 11 September.
The total number of passengers at Copenhagen
Airport in 2001 was 18.1 million. The number of
international scheduled passengers was 2.3%
Number of passengers*(Million)
Charter + otherDomestic scheduledInternational scheduled
0100999897
0
5
10
15
* Adjusted for catamaran ferry
0100999897
Traffic revenue(DKK million)
Charter + otherDomestic scheduledInternational scheduled
0
200
400
600
800
1,000
Dir
ect
ors
re
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19
higher than in 2000. The number of charter
passengers was down by 12.1%. The fall in do-
mestic scheduled passengers recorded in earlier
years continued in 2001 as the passenger volume
declined by 6.9% compared with the level in
2000.
The number of take-offs and landings by passen-
ger aircraft at Copenhagen Airport was down
5.2% compared with 2000. This decline was par-
tially offset by the effect of the use of larger pas-
senger aircraft than before. The tonnage was
therefore 0.1% higher than in 2000.
The number of cargo operations at Copenhagen
Airport was 0.9% higher than in 2000. During the
same period, the total take-off mass for cargo op-
erations increased by only 0.4% as a result of the
use of smaller aircraft for cargo operations.
Concession revenue
Concession revenue totalled DKK 489.6 million in
2001, corresponding to a fall of DKK 12.0 million
or 2.4% compared with the level in 2000.
Out of this revenue, the airport shopping centre
accounted for DKK 298.6 million, which was 1.3%
lower than in 2001. However, if concession reve-
nue for 2000 had been restated to refl ect a DKK
6.0 million adjustment for earlier periods, a 0.7%
increase would have been recorded for 2001.
Other concession revenue, including parking,
banking, restaurants and handling, decreased by
0
50
100
150
200
250
300
0100999897
Air transport movements(Thousand)
Charter + otherDomestic scheduledInternational scheduled
0
100
200
300
400
500
600
0100999897
Concession revenue(DKK million)
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4.0% or DKK 8.0 million to DKK 191.0 million.
The fall was primarily attributable to lower conces-
sion revenue from the parking concessionaire. The
parking concessionaires 2001 earnings were re-
duced by interest and depreciation of the capacity
increases made during the year.
Rent
Consolidated rental income for 2001 increased by
8.1% or DKK 13.7 million to DKK 182.7 million
compared with the level in 2000. The increase was
the result of new leases and contractual rent in-
creases.
Revenue
Costs
Dir
ect
ors
re
po
rt
Profit from interests in associated companies
Other operating revenue
Sale of services, etc.
Rent
Concession revenue
Other traffic charges
Passenger charges
Take-off charges
Tax on the profit for the year
Net financial expenses
Depreciation and impairment
Staff costs
Other expenses
Administrative expenses
Energy
Operation and maintenance
-
21
Sales of services, etc.
Consolidated sales of services rose DKK 114.9 mil-
lion to DKK 170.4 million, primarily because the
item included revenue of DKK 104.3 million from
the Groups hotel activity in 2001.
Other Group service revenue rose by DKK 10.6 mil-
lion compared with 2000. The increase was prima-
rily attributable to the increase in international ac-
tivities, where sales of consultancy services to for-
eign airports amounted to DKK 19.2 million in
2001.
Profi t from interests in associated companies
The profi t from interests in associated companies
was DKK 43.0 million, up from DKK 16.5 million in
2000. DKK 14.8 million of this improvement was
attributable to the Groups investments in Mexican
airports. Furthermore, eight months profi t, equiva-
lent to DKK 10.6 million, was recognised from the
Groups investment in Newcastle International Air-
port.
Costs
External expenses
Consolidated external expenses amounted to DKK
401.5 million in 2001, up from DKK 295.9 million
in 2000. Out of the increase, DKK 94.8 million was
attributable to the Groups hotel activity, while the
parent companys external expenses increased by
DKK 11.1 million.
For 2001, costs of DKK 100.7 million were recog-
nised relating to the Groups hotel activity, which
were signifi cantly effected by opening and run-
ning-in costs. The company has a 20-year hotel
management agreement with Hilton International.
Under the management agreement, the hotel staff
is employed by Hilton International. All operating
expenses relating to the hotel are recognised as ex-
ternal expenses in the consolidated fi nancial state-
ments of Copenhagen Airports.
The increase in the parent companys external ex-
penses was attributable to increased costs in con-
nection with studies of potential opportunities to
invest in foreign airports and to optimise the
Groups commercial revenue. Furthermore, in-
creased expenses were incurred for airport liability
insurance following the terrorist attacks in the US.
Staff costs
Consolidated staff costs rose by 7.5% to DKK
509.8 million from DKK 474.1 million in 2000.
In addition to a general pay adjustment, the in-
crease in staff costs was attributable to an increase
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22
in the number of days off with pay. Furthermore,
payroll costs were affected by the transition of the
company to the growing internationalisation of
operations and the Groups increased focus on
business optimisation, resulting in a requirement
for advisory and analytical functions. Finally, the
rising payroll costs were attributable to a reduction
in capital investments, which reduced capitalisa-
tion of internal payroll costs relating to Group capi-
tal investments by DKK 7.7 million.
Copenhagen Airports had an average of 1,388 em-
ployees in 2001, which was 11 less than in 2000.
Depreciation and impairment
Consolidated depreciation for the year increased
by 9.3% to DKK 444.9 million compared with DKK
407.2 million in 2000. Of this DKK 37.7 million in-
crease, DKK 20.4 million was attributable to the
opening of the Hilton Copenhagen Airport in
2001. The remaining increase was primarily attrib-
utable to depreciation of assets brought into use in
the form of building changes in connection with
Denmarks new status as a Schengen country.
Net fi nancial expenses
Consolidated net fi nancial expenses increased by
59.7% to DKK 192.3 million from DKK 120.4 mil-
lion in 2000. Out of this increase, DKK 45.1 million
represented interest and borrowing expenses re-
lated to the fi nancing of the investment in Newcas-
tle International Airport, while the remaining in-
crease was primarily attributable to the Groups ho-
tel activity and the acquisition of 418,400 sq.m. of
land on the peninsula that was created in connec-
tion with the establishment of the resund Link.
Tax on the profi t for the year
Tax on the profi t for the year was down 2.4% to
DKK 149.8 million from DKK 153.4 million in 2000.
The effective tax rate in 2001 was 30.5% against
26.0% in 2000. The effective tax rate in 2000 was
favourably affected by a reduction of the Danish
corporation tax rate, which resulted in a reduction
of the Groups deferred tax liability.
Balance sheet
Assets
Tangible fi xed assets
Consolidated tangible fi xed assets totalled DKK
6,174.3 million at 31 December 2001, which was
DKK 4.0 million more than at 31 December 2000.
Dir
ect
ors
re
po
rt
0
300
600
900
1,200
Average number of employees
0100999897
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23
Investments during the year were thus at the same
level as the years depreciation. The main invest-
ments in 2001 were in the completion of the
Hilton Copenhagen Airport and the purchase of
the above mentioned land to secure future expan-
sion opportunities for Copenhagen Airport.
Group capital investments are made on the basis
of a ten-year rolling investment plan, which is ad-
justed regularly to match traffi c growth and traffi c
forecasts. The latest updated investment plan
comprises investments for the period from 2002 to
2011. The plan comprises investments totalling
DKK 5.3 billion in current prices. This includes DKK
2.8 billion of planned new investments, among
other things to increase the airports terminal and
stand capacity and to expand the shopping facili-
ties at the airport, while reinvestment in existing
capacity is expected to total DKK 2.5 billion during
the period.
Long-term fi nancial/strategic assets
In early May 2001, the Group acquired 49% of the
shares in NIAL Holdings Plc. for DKK 1,192.2 mil-
lion through CPH Newcastle Ltd., a new, wholly-
owned holding company. The sole object of the
company is to hold shares in the operating com-
pany, Newcastle International Airport Ltd. NIAL
Copenhagen Airports Hotel and Real Estate
Company A/S Denmark
Copenhagen Airport Development
International A/S Denmark
Airport Coordination Denmark A/S
Denmark
Rygge Sivile Lufthavn AS
Norway
Inversiones y Tecnicas Aeroportuarias S.A.
de C.V. (ITA)Mexico
CPH Newcastle Ltd.United Kingdom
100% 100% 50% 35.3% 25.5% 100%
Copenhagen Airports A/S
2.5%
15%
Grupo Aeroportuariodel Sureste, S.A. de C.V. (ASUR)
Mexico
49%
NIAL Holdings Plc.United Kingdom
100%
Newcastle International Airport Ltd.
United Kingdom
The legal Group structure of Copenhagen Airports A/S is shown in the chart
below:
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24
Holdings Plc. is recognised in the consolidated fi -
nancial statements as an associated company.
The Group owns a 25.5% equity stake in Inver-
siones y Tecnicas Aeroportuarias S.A. de C.V. (ITA),
which holds 15% of the share capital in Grupo
Aeroportuario del Sureste S.A. de C.V. (ASUR), the
Mexican company holding the concession to oper-
ate nine airports on the Yucatan peninsula in
Mexico for 50 years.
Furthermore, the Group has a direct equity interest
in ASUR corresponding to 2.5% of the listed
shares in the company. As a result of the close re-
lationship with the original investment in ITA,
ASUR is also classifi ed as an associated company.
Furthermore, the Group holds 35.3% of the shares
in the Norwegian company Rygge Sivile Lufthavn
AS. The objects of that company are to investigate
the possibility of operating civil air transport from
this airport, which is located some 60 kilometres
south of Oslo, and which has been used solely as a
military airport until now.
Finally, long-term fi nancial assets include a 50%
equity stake in Airport Coordination Denmark A/S,
an associated company, which handles the alloca-
tion of slots to airlines operating on Copenhagen
Airport.
The Groups long-term fi nancial assets totalled
DKK 1,656.5 million at 31 December 2001 com-
pared with DKK 380.6 million at the end of 2000.
DKK 1,217.2 million of this increase was attribut-
able to the Groups investment in Newcastle Inter-
national Airport.
Debtors
The Groups debtors had fallen by DKK 64.6 mil-
lion to DKK 301.1 million at 31 December 2001.
The decline was primarily attributable to a reduc-
tion in debtors relating to re-invoicing of construc-
tion projects on behalf of Group customers.
Liabilities
Long-term liabilities
The Groups long-term liabilities totalled DKK
3,359.1 million at 31 December 2001 compared
with DKK 2,534.5 million at 31 December 2000.
The increase was primarily attributable to a new
loan of GBP 95.0 million to fi nance the investment
in Newcastle International Airport.
Dir
ect
ors
re
po
rt
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0100999897
Net loans(DKK million)
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25
The Groups equity ratio was 38.1% at 31 Decem-
ber 2001 compared with 41.4% at 31 December
2000. The Groups target is an equity ratio of
about 35-40%.
Current liabilities
The Groups current liabilities amounted to DKK
1,036.4 million at 31 December 2001, which was
DKK 167.4 million higher than in 2000. The short-
term portion of debt to credit institutions increas-
ed by DKK 273.2 million, mainly as a result of the
above mentioned loan for the investment in New-
castle International Airport. The remaining part of
current liabilities was reduced by DKK 105.8 mil-
lion, primarily due to a reduction in trade creditors
as a result of the lower investment activity in Co-
penhagen.
Cash fl ow statement
The Groups cash and cash equivalents grew by
DKK 140.0 million in 2001 to DKK 180.5 million.
Cash fl ow from operating activities
The cash fl ow from operating activities amounted
to DKK 862.9 million, which was DKK 67.3 million
less than in 2000. The decrease was primarily at-
tributable to the lower operating results and rising
net fi nancial expenses in connection with the
funding of the investment in Newcastle Interna-
tional Airport.
Cash fl ow from investing activities
Payments for fi xed assets totalled DKK 1,697.2
million compared with DKK 803.3 million in 2000.
The increase was attributable to the investment in
Newcastle International Airport; the increase was
partly offset by a reduction of domestic invest-
ments.
Cash fl ow from fi nancing activities
The cash fl ow from fi nancing activities amounted
to DKK 974.3 million, which was DKK 1,078.3 mil-
lion more than in 2000. During the year, new loans
totalling DKK 1,539.7 million were raised, primarily
to fi nance the investment in Newcastle Interna-
tional Airport, while repayments on loans during
the year totalled DKK 478.9 million. In addition
dividend paid amounted to DKK 86.5 million.
Financial resources
It is Group policy to maintain signifi cant, long-term
fi nancial resources. At 31 December 2001, the
Group had unused long-term facilities of approxi-
mately DKK 950.0 million and unused short-term
facilities of DKK 550.0 million as a supplement to
its day-to-day cash resources.
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26
Interest rate and exchange rate risks
The Groups interest rate and exchange rate risks
are managed centrally, and fi nancial instruments
are used solely to hedge this type of risks.
At 31 December 2001, approximately 25% of the
Groups total debt of DKK 3,956.0 million was at
fi xed rates, or the interest rate had been locked in
for more than one year through interest swaps.
Approximately 22% of the fl oating rate debt had
been hedged by caps at 6% p.a. The calculated
duration of the Groups debt is between one and
two years. In order to reduce the overall interest
rate sensitivity, the Group intends to refi nance its
debt in an ongoing process so that it will match
the economic life of the underlying assets to a
greater extent. Management believes that, taking
into account the Groups risk profi le, the Group
will continue to have access to fi nance on the best
terms in the market.
The Groups traffi c revenues are received in Danish
kroner only. The exposure to exchange rate fl uctu-
ations is therefore largely limited to investments
in, dividends from and intercompany accounts
with associated companies abroad. Given the in-
crease in investments in foreign associated compa-
nies, it is Group policy to hedge this risk as much
as possible.
Dir
ect
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Risk factors
The Groups most signifi cant risks can be divided
into customer and economic risks, interest rate
and exchange rate risks, credit risks and environ-
mental impact.
Customer and economic risks
Owing to its large, irreversible capital investments,
the Group is sensitive to factors which could have
an adverse impact on traffi c growth.
SAS is the companys largest customer, contribut-
ing about 60% of traffi c revenue. In the short
term, Copenhagen Airports status as a Scandina-
vian hub is dependent on SAS fi nely meshed
route network out of Copenhagen, primarily to
European destinations. Any increased point-to-
point traffi c to and from other destinations in
Scandinavia and the rest of Europe would thus
weaken the status of Copenhagen Airport as a
Scandinavian hub.
Developments in air traffi c are related to trends
in society in general, primarily economic and politi-
cal developments. This was seen clearly in 2001 in
connection with the terrorist attacks in the US. In
addition to fl ight-related revenue, economic and
political trends are also refl ected in concession
revenue.
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27
Credit risks
The Group seeks to limit the credit risk on invest-
ment of liquidity and in relation to fi nancial instru-
ments in general by collaborating with fi nancial
partners with high creditworthiness.
Environmental impact
The environmental impact from the companys air-
ports at Copenhagen and Roskilde is regulated
based on terms and conditions laid down in envi-
ronmental approvals from the relevant environ-
mental authorities. The terms may include both re-
quirements to future expansion and operational
adjustments.
The total environmental impact for the year corre-
sponded to expected developments. Effi ciency im-
provements, the phasing out of older aircraft types
and the use of more environmentally friendly air-
craft types are expected to further reduce, in the
years ahead, the environmental impact relative to
the activity level.
In line with the Groups environmental policy, the
operation and development of Copenhagen Air-
port must be balanced against environmental con-
siderations, including initiatives to reduce noise im-
pact while ensuring that this has no consequences
on Copenhagen Airports position as a traffi c hub.
Copenhagen Airports A/S has prepared a separate
environmental report for 2001.
Corporate governance
The Supervisory Board has debated the Nrby
Committees recommendations on corporate
governance in Denmark, and the Board believes
that the company meets the Committees
recommendations in all essential respects. The
company continues to work on implementing
these recommendations in areas where the direc-
tors believe such a process would lead to improve-
ments.
The role of the shareholders and their inter-
action with the management of the company
Copenhagen Airports provides an important com-
ponent of the infrastructure of Danish society, so
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there are special social considerations related to
the operation of Copenhagen Airports. According
to the articles of association of Copenhagen Air-
ports A/S, no shareholder other than the Kingdom
of Denmark may hold more than 10% of the com-
panys share capital. This ownership restriction was
introduced when Copenhagen Airports was priva-
tised.
The role of stakeholders and their importance
to the company
As Denmarks central international airport, located
at Kastrup just outside Copenhagen, the airport
has many stakeholders whose relationship with
the company is of great importance to Copen-
hagen Airports in all respects. A crucial aspect of
the airports interaction with its stakeholders is
addressed in the 2001 Environmental Report.
Openness and transparency
Copenhagen Airports considers it important to
publish without undue delay information of a
fi nancial and non-fi nancial nature of relevance to
the evaluation of the company by shareholders
and fi nancial markets. Annual reports and quar-
terly reports are published in both Danish and
English; like the companys traffi c statistics and
environmental report, this information is available
on the corporate Web site. Investor presentations
from the semi-annual investor meetings may also
be viewed on the Web site.
The tasks, responsibilities and composition of
the Supervisory Board
The Board meets at least six times a year. Six mem-
bers of the Board are elected by the shareholders
at the annual general meeting, and three mem-
bers are elected by the employees. The members
elected by the shareholders are elected for terms
of one year at a time. There are no upper limits to
the age and terms of service for Board members.
The Board agrees with the recommendations
made by the Nrby Committee, but also believes
that it is important to the interests of the company
and its shareholders that such a provision should
solely be a guideline, and that decisions should be
based on a specifi c evaluation in each case.
The Supervisory Board lays down the companys
general objectives, strategy, guidelines and invest-
ment policy on the basis of recommendations
made by the Executive Board.
The members of the Supervisory Board are re-
cruited according to recruiting criteria fi xed by the
Supervisory Board and requirements to professional
qualifi cations, which are to ensure that, overall, the
Board has a suitable competency profi le.
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Remuneration to the members of the
Executive Board
Copenhagen Airports is planning to establish an
incentive plan based on stock options and bonuses
intended to form part of a competitive compensa-
tion package for the members of the Executive
Board. The programme also aims to ensure that
the interests of the members of the Executive
Board are in line with shareholder interests.
Risk management
The risk management performed by the Supervisory
Board involves regular Board meetings with a recur-
ring agenda which includes reviews of the budgets,
interim accounts and cash fl ow statements.
Furthermore, the Supervisory Board regularly con-
siders the companys strategy, investment plan,
capital resources, IT issues, administrative routines,
insurance cover, credit risk and interest rate and ex-
change rate risks.
The Chairman of the Supervisory Board and the
auditors hold at least one meeting a year to discuss
various topics.
Directors interests in Copenhagen Airports A/S
Shares held at Shares held at
1 January 2001 31 December 2001
Number of shares Nominal value Number of shares Nominal value
DKK DKK
Supervisory Board
Vagn Andersen 300 30,000 650 65,000
Lars Nrby Johansen 185 18,500 185 18,500
John Stig Andersen 100 10,000 100 10,000
Anita Doris Rasmussen 240 24,000 240 24,000
Carsten Lennie Winther 383 38,300 383 38,300
Executive Board
Niels Boserup 750 75,000 750 75,000
Kjeld Binger 211 21,100 284 28,400
Torben Thyregod 250 25,000 423 42,300
Peter Rasmussen 250 25,000 250 25,000
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Other information
Ownership structure
No shareholder other than the Kingdom of Den-
mark, LD Pensions, the Danish Labour Market Sup-
plementary Capital Pension Fund (ATP) and Taube
Hodson Stonex Partners Ltd. held more than 5%
of the Groups shares at 31 December 2001.
New accounting policies
As from 1 January 2002, Copenhagen Airports will
present its consolidated accounts in compliance
with the new Danish Financial Statements Act,
which will involve a number of changes to the cur-
rent accounting policies. The main change will be
that leased assets will be recognised in the balance
sheet in future, which is estimated to increase the
Groups assets by approximately DKK 500 million.
It is not expected that the accounting policy
changes will have any signifi cant effect on Group
profi t before and after tax. The changes are solely
of an accounting nature and thus will not have
any impact on the companys cash fl ows.
Outlook for 2002
In the profi t announcement for the third quarter of
2001, the Group forecast that the volume of pas-
sengers would continue to show a falling trend in
the fi rst half of 2002, and that the number of pas-
sengers would begin to increase in the second half
of 2002 compared with the same period in 2001.
It is still expected that traffi c fi gures will follow this
pattern. However, the forecast decline in the
number of passengers in the fi rst half of 2002 is
now 2-3% compared with the same period in
2001. With regard to the prospects for the second
half of 2002, the Groups forecast of traffi c growth
compared with the same period last year remains
unchanged. As a result, the volume of passengers
for 2002 is still expected to be marginally larger
than in 2001.
Opportunities in the international market for air-
port privatisation and strategic advice have been
adversely affected by the terrorist attacks in the US
on 11 September 2001. However, the company
continues to follow market developments closely
in order to utilise opportunities that may arise for
new international projects on favourable fi nancial
conditions.
Based on the prospects for traffi c and for develop-
ments in the international area for 2002, the
Group expects pre-tax profi t to be slightly above
pre-tax profi t for 2001.
Forecast of quarterly performance
in 2002
Quarterly performance in 2002 is expected to be
different than in 2001. Below is a description of
the expected developments in pre-tax profi t in
2002 compared with actual results in 2001.
First quarter
Pre-tax profi t for the fi rst quarter of 2002 is ex-
pected to be signifi cantly lower than in the fi rst
quarter of 2001. The expected decline is primarily
attributable to an expected loss from Newcastle In-
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31
ternational Airport, refl ecting normal seasonal fl uc-
tuations for that airport. No share of results of that
company was recognised in the fi rst quarter of
2001, as the acquisition was made on 4 May
2001. Furthermore, the expected reduction in pre-
tax profi t for the fi rst quarter of 2002 is attributa-
ble to lower traffi c revenue in the parent company
as a result of the expected fall in the number of
passengers. Finally, the expected lower results are
attributable to increased interest expenses for the
loan obtained to fi nance the investment in New-
castle International Airport.
Second quarter
Pre-tax profi t for the second quarter of 2002 is ex-
pected to be slightly lower than in the same period
of 2001. The fall is primarily attributable to the in-
vestment in Newcastle International Airport.
Third quarter
In the third quarter of 2002, pre-tax profi t is ex-
pected to be in line with pre-tax profi t for the third
quarter of 2001.
Fourth quarter
Pre-tax profi t for the fourth quarter of 2002 is ex-
pected to be signifi cantly higher than in the same
period of 2001. The reason is the signifi cant ad-
verse impact in the fourth quarter of 2001 of the
terrorist attacks in the US on 11 September. The
growth in passenger volume is expected to have
normalised in the fourth quarter of 2002, which
is expected to lead to improved results for the
quarter.
-
The Hilton Copenhagen Airport features
Scandinavian architecture and interior design,
including classical Scandinavian designer furniture
and modern art, which interacts with the
architecture. Light fl ows in from all corners of the
world and from the glass roof in the 45-metre-
high atrium forming the centre of the hotel.
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Basis of preparation
The consolidated accounts for 2001 have been
prepared in accordance with the Danish Company
Accounts Act and related orders as well as guide-
lines issued by the Copenhagen Stock Exchange
on the presentation of accounts by listed compa-
nies, including applicable Danish accounting
standards.
The consolidated accounts have been prepared ac-
cording to the same accounting policies as for the
2000 annual accounts.
Basis of consolidation
The Group accounts consolidate the accounts of
the parent company, Copenhagen Airports A/S,
and companies in which the parent company
directly or indirectly holds a voting majority or in
which the parent company, through shareholdings
or in any other way, holds a controlling interest.
Companies in which the Group holds between
20% and 50% of the votes or in any other way
exercises a signifi cant but not a controlling infl u-
ence are considered associated companies.
The consolidated accounts are prepared on the ba-
sis of the annual accounts of the parent company
and subsidiaries by adding up items of a uniform
nature.
The accounts used in the consolidation are pre-
pared in accordance with the Groups accounting
policies.
Accounting policies
Acc
ou
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lici
es
In the consolidation, intercompany income and
expenses, accounts and profi ts and losses included
in the net book value of the assets are eliminated.
The net book value of the parent companys inter-
ests in the consolidated subsidiaries is set off
against the parent companys interests in the net
book assets of the subsidiaries, calculated at the
time the Group relationship was established.
Newly acquired or newly formed companies are in-
cluded in the profi t and loss account from the date
of acquisition, and divested companies are in-
cluded until the date of divestment. The excess
value over book value of assets in associated com-
panies is capitalised under tangible and intangible
fi xed assets. Intangible fi xed assets concern con-
cessions and the like to operate the airport and are
amortised over periods of up to 50 years on the
basis of an individual evaluation, including the
term of the concession. If assets are acquired for
less than book value, the difference in value is
stated as a provision and dissolved in step with the
realisation of future deteriorated operating results
in the companies acquired. The comparative fi g-
ures are not restated to refl ect acquisitions or di-
vestments.
Foreign currency translation
Transactions denominated in foreign currency are
translated at the exchange rate ruling on the
transaction date. Assets and liabilities denomi-
nated in foreign currency are translated at the ex-
change rates ruling on the balance sheet date. Re-
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35
sulting exchange differences are recognised in the
profi t and loss account under fi nancial items.
When translating the accounts of foreign associ-
ated companies, the profi t and loss account is
translated at average exchange rates, while bal-
ance sheet items are translated at the exchange
rates ruling at the balance sheet date. Exchange
differences arising on the translation of the for-
eign companies shareholders equity at the begin-
ning of the year and on the translation of foreign
company profi t and loss accounts to average ex-
change rates are taken directly to shareholders
equity.
Financial instruments
The Group solely uses fi nancial instruments to
hedge fi nancial risks that arise in connection with
operating, investing and fi nancing activities.
Where the items hedged are assets or liabilities,
gains and losses on fi nancial instruments are rec-
ognised in the profi t and loss account concurrently
with the items hedged.
Premiums received or paid on the use of fi nancial
instruments are recognised on a straight-line basis
in the profi t and loss account over the term of the
instrument as fi nancial income or expenses.
Exchange differences arising on loans denomi-
nated in foreign currencies and fi nancial instru-
ments to hedge investments denominated in for-
eign currency are taken directly to shareholders
equity to the extent they are equal to investments
in foreign associated companies.
For fi nancial instruments that do not meet the
conditions for hedge accounting, changes in value
are recognised in the profi t and loss account as
they occur.
Corporation tax and deferred tax
Tax on the profi t for the year comprises current tax
and changes in deferred tax.
Current tax comprises tax estimated on the basis
of the taxable income for the year applying the
tax rates for the year and any prior year adjust-
ments.
Current tax liabilities are recognised in the balance
sheet as current liabilities to the extent such items
have not been paid.
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36
Tax overpaid on account is included in other
debtors.
Supplements, deductions and allowances regard-
ing tax payments are recognised under net fi nan-
cial expenses.
Deferred tax is calculated according to the bal-
ance-sheet-oriented liability method on all timing
differences between accounting and tax amounts.
Deferred tax is calculated on the basis of the tax
rate in force for the fi nancial year. The effect of
the change in tax rates is recognised in the profi t
and loss account unless it relates to items previ-
ously taken directly to shareholders equity. De-
ferred tax liabilities are recognised as a provision in
the balance sheet. Deferred tax assets are recog-
nised in the balance sheet at the value at which
the assets are expected to be realisable.
Deferred tax is not calculated for investments in
subsidiaries and associated companies if the shares
are not expected to be sold within a short period
of time.
Copenhagen Airports A/S is taxed jointly with its
wholly-owned Danish subsidiaries. The tax effect
of the joint taxation is allocated to both profi t-
making and loss-making subsidiaries in proportion
to their taxable income.
The jointly taxed Danish companies are subject to
the Danish scheme of tax payments on account.
Dividend
Dividend proposed to be paid in respect of the
year is stated as a separate item under current lia-
bilities.
Profi t and loss account
Revenue recognition
Traffi c revenue comprises take-off, parking and
passenger charges and is recognised when the re-
lated services are provided.
Concession revenue comprises turnover-related
revenue from the airport shopping centre, parking
facilities, etc. and is recognised in step with the
turnover generated by the concessionaires.
Acc
ou
nti
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37
Rent comprises rent for buildings and areas and is
recognised over the terms of the contracts.
Revenue from the sale of services comprises reve-
nue from the hotel activity and other items of an
operating nature, which are recognised when de-
livery of the services takes place.
Net revenue
Net revenue represents the value of the years traf-
fi c revenue, rent, concession revenue, and sale of
services net of value added tax and price reduc-
tions directly related to sales.
Other operating income
Other operating income comprises items of a sec-
ondary nature relative to the Groups main activi-
ties. Other operating income is reduced by the re-
lated operating costs.
External expenses
External expenses comprise administrative ex-
penses and other operating and maintenance ex-
penses.
Staff costs
Staff costs comprise salaries, wages and pensions
to the Groups staff as well as other staff costs.
Regular pension contributions under fi xed-contri-
bution schemes are charged to the profi t and loss
account in the period in which they arise.
For civil servants seconded by the Danish State, the
Group recognises a fi xed pension contribution,
which is paid to the State on a regular basis.
Rent and lease costs
Rent and lease costs are charged on a straight-line
basis over the contractual rent and lease periods.
Depreciation and impairment
Depreciation and impairment comprises the years
charges for this purpose on the Groups tangible
fi xed assets.
Profi t from interests in associated companies
Profi t from interests in associated companies is rec-
ognised as a proportional share of the profi t or
loss of each subsidiary and associated company af-
ter adjustment of unrealised intercompany gains
and losses. The share of tax in these companies is
charged to Tax on the profi t for the year.
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38
Financial items
Financial items comprise interest receivable and in-
terest payable recognised in the profi t and loss ac-
count in the amounts relating to the fi nancial year.
In addition, the item includes loan costs, realised
and unrealised exchange differences on fi nancial
instruments and items in foreign currency.
Balance sheet
Tangible fi xed assets
Tangible fi xed assets are recognised at historic cost
or, for assets produced by the company, at produc-
tion cost less accumulated depreciation and im-
pairment.
Production cost for assets built by the company
comprises costs which can be related directly or in-
directly to the asset, including payroll costs.
Financing costs during the period of construction
are solely included in production costs for build-
ings not directly related to airport operations.
Depreciation is charged on a straight-line basis
over the estimated useful lives of the assets and
begins when the assets are brought into use. For
certain assets, depreciation is charged on the basis
of capacity utilisation during the year relative to
total estimated capacity in order to match depreci-
ation to the directly related revenue.
Land is not depreciated.
The estimated useful lives of the major asset cate-
gories are as follows:
Land and buildings
Buildings 30 - 40 years
Fitting out of buildings directly
related to airport operations 10 years
Fitting out of buildings not directly
related to airport operations 25 years
Plant and machinery
Runways, etc. 10 - 40 years
Technical installations 10 - 15 years
Other equipment
Large vehicles 12 - 15 years
Other operating equipment and
furniture directly related to airport
operations 3 - 10 years
Other operating equipment and
furniture not directly related to
airport operations 5 - 15 years
Small vehicles 3 - 5 years
Acc
ou
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39
Assets with an estimated useful life of less than
three years and assets costing less than DKK
25,000 are expensed in the year of acquisition.
Gains and losses on the sale of fi xed assets are rec-
ognised in Other operating income.
Impairment of assets
The net book value of intangible and tangible
fi xed assets is reviewed periodically to determine
whether there are any indications of an impair-
ment of the assets other than that expressed in
normal amortisation and depreciation. If that is the
case, the value of the assets is written down to the
higher of the value in use and net realisable value.
The impairment of tangible fi xed assets is recog-
nised under Depreciation and impairment of tan-
gible fi xed assets.
Long-term fi nancial assets
Interests in subsidiaries and associated companies
are valued according to the equity method.
The net revaluation of equity interests is allocated
to the Reserve for net revaluation according to
the equity method under shareholders equity as
part of the profi t allocation.
Other interests are recognised at the lower of cost
and their value at the balance sheet date.
Debtors
Debtors are stated in the balance sheet at nominal
value less provisions for doubtful debts. Provisions
for doubtful debts are determined on the basis of
an individual assessment of each account.
Own shares
Own shares are recognised in the balance sheet at
the lower of historic cost and market price. Gains
and losses on the sale of own shares are recog-
nised under fi nancial items in the profi t and loss
account.
Financial institutions
Interest-bearing loans are stated at nominal value.
Other liabilities
Other liabilities primarily comprise holiday pay lia-
bilities, income taxes, other taxes and interest pay-
able.
Prepayments
Prepayments comprise expenses incurred and reve-
nue received before the balance sheet date, but
which relate to later fi nancial years.
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Cash fl ow statement
The cash fl ow statement shows the composition of
the Groups cash fl ows divided into cash fl ow from
operating, investing and fi nancing activities as well
as the Groups cash and cash equivalents at the
beginning and end of the fi nancial year.
The cash fl ow from operating activities comprises
payments from customers less payments to em-
ployees, suppliers etc. adjusted for fi nancial items
paid and taxes paid.
The cash fl ow from investing activities comprises
consolidated payments in connection with the pur-
chase and sale of tangible and long-term fi nancial
assets.
The cash fl ow from fi nancing activities comprises
the proceeds from short-term and long-term loans
raised, instalments paid on short-term and long-
term loans and dividend paid to shareholders.
Acc
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Profi t and loss account1 January to 31 December DKK 000
Parent company Group
2000 2001 Note 2001 2000
1,115,308 1,118,822 Traffi c revenue 1,118,822 1,115,308
501,560 489,601 Concession revenue 489,601 501,560
175,446 189,172 Rent 182,672 168,946
54,816 65,881 Sale of services, etc. 170,444 55,522
1,847,130 1,863,476 1 Net revenue 1,961,539 1,841,336
30,112 34,447 Other operating revenue 34,301 29,966
1,877,242 1,897,923 Total net revenue 1,995,840 1,871,302
289,697 300,847 2 External expenses 401,489 295,928
474,019 509,847 3 Staff costs 509,847 474,133
8 Depreciation and impairment of tangible fi xed
407,195 424,521 assets 444,889 407,195
706,331 662,708 Operating profi t 639,615 694,046
(11,911) (34,059) 4 Profi t from interests in subsidiaries before tax - -
4 Profi t from interests in associated companies
16,464 32,372 before tax 42,964 16,464
13,926 14,935 5 Interest receivable and similar income 13,413 14,309
134,725 185,679 6 Interest payable and similar expenses 205,715 134,734
590,085 490,277 Profi t before tax 490,277 590,085
153,391 149,757 7 Tax on the profi t for the year 149,757 153,391
436,694 340,520 Net profi t 340,520 436,694
Proposed allocation:
344,386 251,653 13 Transfer to retained profi t
12 Transfer to reserve for net revaluation according
5,858 (2,133) to the equity method
86,450 91,000 Dividend
436,694 340,520
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Balance sheet At 31 December DKK 000
Assets
Parent company Group
2000 2001 Note 2001 2000
Fixed assets 8 Tangible fi xed assets
2,682,166 2,901,790 Land and buildings 3,211,184 2,682,166
2,278,435 2,319,627 Plant and machinery 2,469,208 2,278,435
327,356 324,558 Other equipment 346,984 327,356
418,794 146,971 Assets under construction 146,971 882,410
5,706,751 5,692,946 Total tangible fi xed assets 6,174,347 6,170,367
9 Long-term fi nancial assets
57,795 1,243,512 Interests in subsidiaries - -
380,468 438,485 Interests in associated companies 1,655,690 380,468
111 821 Other interests 821 111
438,374 1,682,818 Total long-term fi nancial assets 1,656,511 380,579
6,145,125 7,375,764 Total fi xed assets 7,830,858 6,550,946
Current assets Debtors 251,432 198,230 Trade debtors 215,075 251,498
178,639 27,595 Amounts owing by subsidiaries - -
58,678 35,687 7 Other debtors 54,923 90,994
23,228 30,470 Prepayments 31,096 23,228
511,977 291,982 Total debtors 301,094 365,720
Securities and other interests
587 587 10 Own shares 587 587
30,646 170,544 Cash and cash equivalents 180,518 40,510
543,210 463,113 Total current assets 482,199 406,817
6,688,335 7,838,877 Total assets 8,313,057 6,957,763
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Balance sheet At 31 December DKK 000
Liabilities and equity
Parent company Group
2000 2001 Note 2001 2000
Shareholders equity 910,000 910,000 11 Share capital 910,000 910,000
12 Reserve for net revaluation according to the
50,712 86,484 equity method 131,177 63,917
587 587 Reserve for own shares 587 587
1,917,794 2,169,447 13 Retained profi t 2,124,754 1,904,589
2,879,093 3,166,518 Total shareholders equity 3,166,518 2,879,093
Provisions 665,547 735,441 7 Deferred tax 751,035 675,107
Long-term liabilities 2,303,571 2,943,356 14 Financial institutions 3,359,061 2,534,545
Current liabilities 296,044 567,857 14 Financial institutions 596,971 323,734
12,189 0 Bank loans and overdrafts 0 12,189
78,198 77,160 Prepayments from customers 77,160 78,198
192,710 95,152 Trade creditors 97,464 193,910
134 0 Amounts owing to subsidiaries - -
174,399 162,393 15 Other liabilities 173,848 174,537
86,450 91,000 Dividend for the year 91,000 86,450
840,124 993,562 Total current liabilities 1,036,443 869,018
3,143,695 3,936,918 Total liabilities 4,395,504 3,403,563
6,688,335 7,838,877 Total liabilities and equity 8,313,057 6,957,763
16 Financial commitments
17 Related parties
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Cash fl ow statement 1 January to 31 December DKK 000
Group
Note 2001 2000
Cash fl ow from operating activities 18 Received from customers 2,031,225 1,879,466
19 Paid to staff and suppliers (910,850) (711,876)
Cash fl ow from operating activities before fi nancial items 1,120,375 1,167,590
20 Interest received 11,597 9,342
21 Interest paid (202,467) (132,958)
Cash fl ow from ordinary activities 929,505 1,043,974
Corporation tax paid (66,579) (113,745)
Cash fl ow from operating activities 862,926 930,229
Cash fl ow from investering activities Net payments for tangible fi xed assets (504,258) (703,982)
Payments for long-term fi nancial assets (1,192,952) (99,329)
Cash fl ow from investing activities (1,697,210) (803,311)
Cash fl ow from fi nancing activities Repayments of long-term loans (181,703) (31,027)
New long-term loans 1,539,668 0
Repayments of short-term loans (285,034) (94,000)
New short-term loans 0 85,034
Drawings on current accounts (12,189) 12,189
Dividends paid (86,450) (81,450)
Proceeds from increase of share capital 0 5,250
Cash fl ow from fi nancing activities 974,292 (104,004)
Net change in cash and cash equivalents 140,008 22,914
Cash and cash equivalents at beginning of year 40,510 17,596
Cash and cash equivalents at year-end 180,518 40,510
Ca
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Notes to the accountsDKK 000
Parent company Group
2000 2001 Note 2001 2000 1 Net revenue
Traffi c revenue
508,248 508,450 Take-off charges 508,450 508,248
587,266 586,120 Passenger charges 586,120 587,266
19,794 24,252 Other charges 24,252 19,794
1,115,308 1,118,822 Total traffi c revenue 1,118,822 1,115,308
Concession revenue
302,548 298,613 Shopping centre 298,613 302,548
84,921 83,767 Handling 83,767 84,921
114,091 107,221 Other concession revenue 107,221 114,091
501,560 489,601 Total concession revenue 489,601 501,560
Rent
120,851 123,300 Rent from premises 123,300 120,851
43,735 55,079 Rent from land 48,579 37,235
10,860 10,793 Other rent 10,793 10,860
175,446 189,172 Total rent 182,672 168,946
Sale of services, etc.
- - Hotel activity 104,264 0
54,816 65,881 Other sales of services 66,180 55,522
54,816 65,881 Total sale of services, etc. 170,444 55,522
1,847,130 1,863,476 Total 1,961,539 1,841,336
2 External expenses
181,844 167,161 Operation and maintenance 237,669 187,386
36,516 41,410 Energy 49,350 36,516
60,978 75,940 Administrative expenses 97,639 61,577
10,359 16,336 Other expenses 16,831 10,449
289,697 300,847 Total 401,489 295,928
Fees to auditors appointed at the
annual general meeting:
Audit
168 185 Grothen & Perregaard 200 193
672 740 PricewaterhouseCoopers 925 720
840 925 Total audit fees 1,125 913
Non-audit services
236 133 Grothen & Perregaard 167 333
987 1,822 PricewaterhouseCoopers 1,822 987
1,223 1,955 Total fees for non-audit services 1,989 1,320
2,063 2,880 Total 3,114 2,233
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Parent company Group
2000 2001 Note 2001 2000 3 Staff costs
451,737 478,040 Salaries and wages 478,040 451,843
28,903 31,005 Pensions 31,005 28,911
3,152 2,701 Other social security costs 2,701 3,152
23,713 23,888 Other staff costs 23,888 23,713
507,505 535,634 535,634 507,619
33,486 25,787 Less amount capitalised as fi xed assets 25,787 33,486
474,019 509,847 Total 509,847 474,133
Emoluments to Executive Board including
5,775 9,433 severance pay 9,433 5,775
1,342 1,375 Emoluments to Supervisory Board 1,375 1,342
No member of the Executive Board is entitled to severance pay exceeding two years salary. The emoluments for 2001 include
severance pay in the amount of DKK 3.1 million.
The average number of people employed by the Group and the parent company in 2001 was 1,388 full-time employees against
1,399 in 2000. This fi gure includes 123 civil servants who, pursuant to the Copenhagen Airports Act, have retained their employ-
ment with the State. The corresponding fi gure for 2000 was 157.
The parent company makes annual pension contributions to the State. The contributions are paid for employees who, under their
contracts of employment, are entitled to pensions from the State. The rate of pension contributions is fi xed by the Minister of Fi-
nance and is 19.7%. For the parent companys other employees, pension contributions are paid to private pension companies
pursuant to individual or collective agreements.
4 Profi t from interests in subsidiaries
before tax
Copenhagen Airports Hotel and Real Estate
(12,131) (44,913) Company A/S, Denmark
Copenhagen Airport Development
220 262 International A/S, Danmark
0 10,592 CPH Newcastle Ltd., United Kingdom
(11,911) (34,059) Total
Profi t from interests in associated
companies before tax
Inversiones y Tecnicas Aeroportuarias S.A. de
14,421 20,383 C.V., Mexico 20,383 14,421
Grupo Aeroportuario del Sureste S.A. de C.V.,
3,706 12,581 Mexico 12,581 3,706
- - NIAL Holdings Plc., United Kingdom 10,592 0
(1,690) (616) Rygge Sivile Lufthavn AS, Norway (616) (1,690)
27 24 Airport Coordination Denmark A/S, Denmark 24 27
16,464 32,372 Total 42,964 16,464
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Parent company Group
2000 2001 Note 2001 2000 5 Interest receivable and similar income
2,049 9,158 Interest on balances with banks 9,312 5,542
3,138 1,676 Interest on accounts with subsidiaries - -
3,910 3,893 Interest from other debtors 3,893 3,910
4,829 208 Exchange differences 208 4,857
13,926 14,935 Total 13,413 14,309
6 Interest payable and similar expenses
131,614 169,586 Interest payable to fi nancial institutions 189,372 131,623
593 0 Interest on accounts with subsidiaries - -
267 3,262 Exchange differences 3,262 267
2,251 12,831 Other fi nancial expenses 13,081 2,844
134,725 185,679 Total 205,715 134,734
The parent company has concluded forward exchange contracts for USD 10.0 million regarding shares in Grupo Aeroportuario
del Sureste S.A. de C.V. (ASUR), which is listed on the New York Stock Exchange. The total foreign exchange loss for the year
regarding ASUR was DKK 3.0 million.
7 Tax on the profi t for the year
Tax charged to the profi t and loss account
(3,759) (9,461) Tax on the profi t for the year in subsidiaries - -
12,018 108 Prior year adjustment 108 12,482
Tax on the profi t for the year in associated
2,454 9,907 companies 13,610 2,454
187,048 149,203 Tax on the profi t for the year 136,039 183,462
Adjustment as a result of reduction of Danish
(44,370) - corporation tax rate from 32% to 30% - (45,007)
153,391 149,757 Total 149,757 153,391
Corporation tax payable
(45,030) (14,133) Balance at 1 January (23,818) (50,441)
1,360 (3,075) Prior year adjustment (3,075) 1,824
(151,677) (90,171) Tax paid on account in current year (90,171) (151,677)
44,281 14,938 Reimbursement of tax overpaid in previous years 24,584 49,226
(10,812) 0 Tax paid relating to prior year adjustment 0 (10,812)
(482) (992) Tax receivable relating to associated company (992) (482)
148,227 75,755 Tax on the profi t for the year 56,557 138,544
(14,133) (17,678) Balance at 31 December (36,915) (23,818)
Together with the ordinary payment of tax on account of DKK 39.4 million, a voluntary payment of DKK 50.8 million was made.
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Parent company Group
2000 2001 Note 2001 2000 7 Tax on the profi t for the year (continued)
Deferred tax
660,438 665,547 Balance at 1 January 675,107 664,538
10,658 3,183 Prior year adjustment 3,183 10,658
38,821 73,448 Tax on the profi t for the year 79,482 44,918
0 (6,737) Tax on amounts posted on shareholders equity (6,737) 0
Adjustment as a result of reduction of Danish
(44,370) - corporation tax rate from 32% to 30% - (45,007)
665,547 735,441 Balance at 31 December 751,035 675,107
Break-down of deferred tax provision:
681,226 730,157 Tangible fi xed assets 745,751 690,786
(2,160) (1,440) Trade debtors (1,440) (2,160)
2,580 3,390 Prepayments 3,390 2,580
2,558 8,837 Other debtors 8,837 2,558
(3,668) 5,007 Long-term liabilities 5,007 (3,668)
(14,989) (10,510) Other liabilities (10,510) (14,989)
665,547 735,441 Total 751,035 675,107
Break-down of tax on the profi t for the year:
188,827 147,083 Tax estimated at 30% of profi t before tax 147,083 188,827
Tax effect of:
0 525 Deviation of tax rate in foreign subsidiary - -
Deviation of tax rate in foreign associated
(2,814) 196 companies 721 (2,814)
52 231 Unrecognised tax effect of profi ts of subsidiaries - -
(949) (6) Tax exempt income (6) (949)
627 1,620 Expenses that are not deductible 1,851 852
Reduction of provision for deferred tax as a
(44,370) - result of reduction of corporation tax rate - (45,007)
12,018 108 Prior year adjustment 108 12,482
153,391 149,757 Total 149,757 153,391
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Parent company Group
2000 2001 Note 2001 2000 8 Tangible fi xed assets
Land and buildings
Cost
3,128,137 3,314,725 Cost at 1 January 3,314,725 3,128,137
0 161,465 Additions 161,465 0
0 240 Disposals 240 0
186,588 192,525 Completion of assets under construction 510,212 186,588
3,314,725 3,668,475 Cost at 31 December 3,986,162 3,314,725
Depreciation and impairment
Accumulated depreciation and impairment
508,643 632,559 at 1 January 632,559 508,643
123,916 134,366 Depreciation 142,659 123,916
0 240 Depreciation and impairment on disposals 240 0
Accumulated depreciation and impairment
632,559 766,685 at 31 December 774,978 632,559
2,682,166 2,901,790 Net book value at 31 December 3,211,184 2,682,166
Plant and machinery
Cost
3,264,512 3,538,665 Cost at 1 January 3,538,665 3,264,512
0 21,766 Disposals 21,766 0
274,153 242,988 Completion of assets under construction 402,244 274,153
3,538,665 3,759,887 Cost at 31 December 3,919,143 3,538,665
Depreciation and impairment
Accumulated depreciation and impairment
1,064,462 1,260,230 at 1 January 1,260,230 1,064,462
195,768 201,796 Depreciation 211,471 195,768
0 21,766 Depreciation and impairment on disposals 21,766 0
Accumulated depreciation and impairment
1,260,230 1,440,260 at 31 December 1,449,935 1,260,230
2,278,435 2,319,627 Net book value at 31 December 2,469,208 2,278,435
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Parent company Group
2000 2001 Note 2001 2000 8 Tangible fi xed assets (continued)
Other equipment
Cost
734,720 815,519 Cost at 1 January 815,519 734,720
7,918 14,349 Additions 14,349 7,918
2,545 38,460 Disposals 38,460 2,545
75,426 71,896 Completion of assets under construction 96,722 75,426
815,519 863,304 Cost at 31 December 888,130 815,519
Depreciation and impairment
Accumulated depreciation and impairment
402,497 488,163 at 1 January 488,163 402,497
87,511 88,359 Depreciation 90,759 87,511
1,845 37,776 Depreciation and impairment on disposals 37,776 1,845
Accumulated depreciation and impairment
488,163 538,746 at 31 December 541,146 488,163
327,356 324,558 Net book value at 31 December 346,984 327,356
Assets under construction
Cost
402,772 418,794 Cost at 1 January 882,410 640,186
552,189 235,586 Additions 273,739 778,391
(536,167) (507,409) Completion of assets under construction (1,009,178) (536,167)
418,794 146,971 Net book value at 31 December 146,971 882,410
The aggregate airport facilities are not subject to public property valuation.
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Parent company Group
2000 2001 Note 2001 2000 9 Long-term fi nancial assets
Interests in subsidiaries
Cost
16,000 71,000 Cost at 1 January
55,000 1,192,242 Additions
71,000 1,263,242 Cost at 31 December
Revaluation and impairment
Accumulated revaluation and impairment
(5,053) (13,205) at 1 January
0 18,073 Exchange differences
(11,911) (22,000) Profi t/(loss) before tax
0 (12,059) Amortisation before tax of value in excess of
book value under intangible fi xed assets
3,759 9,461 Tax on the profi t for the year
Accumulated revaluation and impairment
(13,205) (19,730) at 31 December
57,795 1,243,512 Net book value at 31 December
At 31 December the value in excess of the book
value under intangible fi xed assets included
0 621,472 in the above net book value amounted to
Interests in associated companies
Cost
217,250 316,551 Cost at 1 January 316,551 217,250
99,301 0 Additions 1,192,242 99,301
316,551 316,551 Cost at 31 December 1,508,793 316,551
Revaluation and impairment
Accumulated revaluation and impairment
37,460 63,917 at 1 January 63,917 37,460
12,447 35,552 Exchange differences 53,626 12,447
16,464 32,372 Profi t/(loss) before tax 55,023 16,464
Amortisation bef