Copenhagen Airports A/S · Ole Rendbæk Deputy Chairman – born on 7 June 1943 Ole Rendbæk...

Copenhagen Airports A/SAnnual Report 2001

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

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

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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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

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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

7

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

Copenhagen Airports A/S

8

Execu

tive B

oard

Executive Board

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

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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

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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

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CPH share price compared with the Copenhagen Stock Exchange KFX index

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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

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Profit before tax(DKK million)

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200

300

400

Net profit(DKK million)

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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

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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

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10

15

* Adjusted for catamaran ferry

0100999897

Traffic revenue(DKK million)


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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

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100

150

200

250

300

0100999897

Air transport movements(Thousand)


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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

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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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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.


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.

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0

300

600

900

1,200

Average number of employees

0100999897

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.

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500

1,000

1,500

2,000

2,500

3,000

3,500

0100999897

Net loans(DKK million)

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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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.

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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.

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

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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-

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.

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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 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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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

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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.

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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


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


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

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Notes to the accountsDKK 000


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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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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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)


(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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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


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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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


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


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


3,538,665 3,759,887 Cost at 31 December 3,919,143 3,538,665



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


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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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


815,519 863,304 Cost at 31 December 888,130 815,519



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


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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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


(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


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

Copenhagen Airports A/S · Ole Rendbæk Deputy Chairman – born on 7 June 1943 Ole Rendbæk...

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