aia annual report 2014

2014

Athens International Airport Eleftherios Venizelos

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Annual Report2014

Athens International Airport Eleftherios Venizelos

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Annual Report 2014

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Contents 05

Highlights of 2014 06

01. Joint Address by the Chairman and the CEO 08

02. The Airport Company 12

03. Market Overview 16

04. Financial Performance 24

05. Our Business Units 28

06. Corporate Responsibility 36

07. Future Prospects 42

Financial Statements 44

2014 Airport Moments 100

Organisational Structure 104

Contents


Financial Highlights according to IFRS

Financial Highlights

ADF: Airport Development Fund* Cash equivalents for 2014 and 2013 results include €250.8 and €220.5million of Euro Securities respectively**AVA: Added Value on Assets = Net Operating Profit after Tax – (Cost of Capital x Net Asset Value)

2014 IFRS 2013 IFRS

1,207.5 1,226.1

Profit before Tax (€million)

Operating Revenues & ADF (€million)

Operating Revenues & ADF per pax (€)

Cash & Cash Equivalents at the end of the Year* (€million)

AVA** (€million)

Revenues from Airport Charges & ADF (€million)

Operating Expenses (€million)

Total Assets (€million)

93.9

126.7

34.8%

12.8%

7.9%

144.0%

19.3%

2.8%-7.0%

-1.5%

311.8 179.7

108.4

255.5

28.9

24.9

351.7 214.5

111.5

275.6

70.5

23.1

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Highlights of 2014

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Passenger Traffic

Aircraft Movements

Cargo Uplift

Traffic Highlights

2014 2013

2014 2013

2014 2013

22.5% 20.5%

11.2%

5.8%

4.0%

-2.4%

-1.8%

132.2

28% 20%31% 21%

15.212.5

21.2%

Total Number of Passengers (million)

Total Aircraft Movements (thousand)

Total Cargo Uplift (thousand tonnes) Freight (thousand tonnes)

Mail (thousand tonnes)

Passenger & Combi Aircraft (thousand)

All-cargo Aircraft (thousand)

Other Aircraft Movements (thousand)

Domestic (million)

domestic/international domestic/international

International (million)

Business Passengers Connecting Passengers

5.3 4.3 8.29.9

154.5

77.3

140.4

74.9

10.0%

3.3%

5.7 5.8

16.7 15.8

118.8

68.0 65.4

9.3 9.5

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Annual Report 2014

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Joint Address by the Chairman and the CEOA brief overview of 2014 clearly indicates that the previous year was a good one for the global aviation industry. With passenger traffic remaining resilient in the face of economic uncertainties and geopolitical risks in various parts of the world, aviation benefited from lower oil prices, lower air fares and increased connectivity. According to IATA and ACI, global air travel expanded by 5.9% in 2014 compared to 2013, slightly exceeding the 10-year average growth rate of 5.6%. At the same time, the worldwide airline industry enjoyed improved net profit margins in 2014 at the level of 2.7% (compared to 1.5% in 2013). Traffic of European airports grew at similar levels with the global average, enjoying a strong passenger traffic increase of 5.4% according to ACI EUROPE, with most of the growth fuelled by low cost carriers. EU airports significantly outpaced economic performance re-affirming the resilience of the demand for air travel and reflecting consumers’ and businesses’ reliance on air connectivity.

At the same time Greek economy, although still fragile, gradually headed towards stabilisation. Following 5 years of depression, Greek GDP returned to marginal growth since the 2nd quarter of the year and is estimated to reach the small but positive number of +0.7% as per the preliminary figures of the Hellenic Statistical Authority.

For Athens International Airport (AIA) 2014 was a very good year. A number of important developments gave a spectacular boost on the airport’s traffic evolution and produced very positive results, both quantitatively and qualitatively. Three main factors led to or assisted in an overall significantly improved outcome, namely stabilisation of the local economy, restoration of the city’s attractiveness, and airlines’ development.

Analytically, during the year 2014 the airport’s passenger traffic reached 15.2 million, exceeding prior-year levels by 2.7 million passengers, which corresponds to a significant increase of 21.2%, whereas the number of flights amounted to 154.5 thousands, surpassing corresponding 2013 levels by 10%.

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With respect to the airline offer, capacity was significantly enhanced by the dynamic expansion of the international network by the established homebased carriers, along with the entry of new Low Cost Carriers in the Athens market, topped by the dynamic investment of foreign legacy carriers. At the same time, travelling demand returned to growth: Greeks gradually returned to air travel, while foreign visitors to Greece reached record levels in 2014. Apart from the increased incoming wave to Greece overall, the city of Athens in particular regained its popularity and welcomed a significant number of foreigners, close to the historical record levels of 2007.

Driven by the significant traffic increase coupled with a prudent cost management, AIA posted improved profits for 2014. The Company recorded Profit before Tax of € 126.7 million for 2014 and proposes a distribution of €87.3 million as dividend to its shareholders. Our Airport Company’s achievement to handle substantial traffic increase, while sustaining costs at low levels and maintaining high quality of services, attests to the fact that it has become even more efficient without compromising its value-for-money strategy. This efficiency improvement was also acknowledged by the 2014 Top Efficiency Excellent Award granted by Air Transport Research Society (ATRS).

During 2014 we continued our dynamic marketing strategy and incentives policy, while at the same time maintaining all charges unchanged without any increase for the sixth consecutive year. In total, thirteen different incentives addressing both development and sustainability aspects were in effect, applied in a fully transparent and non-discriminatory manner. More than 80% of the operating carriers took advantage of one or more targeted incentives, while more than 40 of our airline partners significantly enjoyed the benefits from AIA’s traditional developmental incentives and marketing support.

2014 results and an initial assessment of the offered schemes continue to verify that the incentives implemented successfully dealt with the particular issues for which they were introduced. The fact that an Ultra-Low Cost Carrier, commenced operations from Athens while the share of other Low Cost Carriers also increased, demonstrates the dynamics of the Athens aviation market, strongly supported by the competitiveness of our pricing incentives.

In recognition of our continuous and dynamic support to our airline partners, we received a number of significant distinctions, exclusively voted by the airlines, during “Routes Europe 2014” last April in Marseilles, as well as during “Routes World 2014” the largest annual gathering of airports and airlines last September in Chicago; it is noteworthy that in the context of the prestigious ROUTES events, our airport is the most awarded having received 14 distinctions in 10 years. Complementing the overall successful performance in 2014, AIA won the 10-25 million passenger category in this year’s 10th “Best Airport Awards” of the ACI EUROPE Annual Congress in Frankfurt. The award commended AIA’s “high economic performance in a very challenging context, its excellent work in redeveloping its traffic base while keeping a strong focus on the quality of service”.

For another year, AIA maintained safe, orderly and efficient aviation operations, offering high-quality services

to aircraft operators, ground-handlers and passengers. Close cooperation with all stakeholders ensured both the expected safety level and passenger convenience, while airport readiness and responsiveness to emergency situations was promoted through a series of ten emergency exercises including the Full Scale Emergency Exercise “Aircraft Accident on Airport” that took place in November; the annual full-scale winter operations exercise in December also demonstrated operational readiness and airport’s capability to deal with winter operations assessing its overall airport capacity.

In the retail sector, positive traffic developments of 2014 led to an increase in revenues, generated from the retail and food & beverage units of the Airport Shopping Centre. Nevertheless, this significant increase was not always at par with traffic growth due to the limited buying capacity of the Greek passengers and the change in the consumer’s profile with the growing presence of low cost carriers.

Throughout the year, specific targeted areas of the Airport Shopping Centre went through architectural transformations as part of a broader intervention plan designed and implemented by AIA which will be completed within the following years. The Extra Schengen area redevelopment, is a major upgrade, including the security centralisation, the formation of a commercial walkthrough concept and the creation of additional retail space. The project is expected to be completed in spring 2015, where all included retail and catering units will be developed anew in cooperation with the Hellenic Duty Free Shops and F&B operators. In total, the upgrade investments undertaken by AIA are expected to further enhance the passenger experience and satisfaction while improving commercial sales and revenues.

Highlighting AIA’s socially responsible character, an initiative we feel was very special in the previous year among other key developments was the “Airport Praxis” programme, our contribution towards tackling the burning youth unemployment problem in our country. Addressing people aged 19 to 29, the programme pertained to a six-month paid professional training for 30 young unemployed high school graduates and a three-month paid professional training of 40 University undergraduates or graduates. The objective of this innovative initiative was to actively contribute to the career of 70 young people through “on-the-job” training and targeted courses. In this way AIA aimed to further develop the skills and experience required from young people in order for them to secure jobs and follow a career path at an airport or similar environment.

Regarding environmental responsibility AIA was recognised for best practices during the 2014 European Business Awards for the Environment. Specifically, the airport was awarded the 1st place in the “Management” category by the Greek Federation of Environmental Companies as well as an award for the “Biodiversity” for its initiatives aiming at protecting ecosystems in the area of Mesogeia. In 2014, we renewed our certification at Level 3 of Airport Carbon Accreditation, and took action to further engage the airport community against climate change.

Finally, in 2014, the airport continued to participate in the cultural life of Athens through a variety of permanent and periodic exhibitions addressing 250,000 people within the year.

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Annual Report 2014


Professor Nickolaos G. TravlosChairman of the Board of Directors

“Destination: Athens”: Further to the activities listed above, for the last four years AIA has been strongly investing in the attractiveness of the city of Athens as a tourist destination. Having applied an extensive set of destination marketing initiatives, we were very happy to see our actions significantly contributing to the recovery of the city’s image and the increase in foreign tourists’ arrivals. In this context, following AIA’s worldwide campaign “Perhaψ you’re an Aθenian too!” which ran extremely successfully during 2014 in 18 airports addressing more than 170 million passengers per year, a new international campaign under the moto ”I’m an Aθenian too”, was introduced. The new campaign was a joint initiative between Marketing Greece & AIA inviting visitors to declare their ”Athenian’’ identity by sharing their experiences from their visit to Athens through social media.

Furthermore, the 2nd Airport Chief Executives’ Symposium (ACES – Athens 2014), an AIA initiative hosted in Athens, took place at the magnificent Acropolis Museum in November. It aimed to highlight the interdependence on one hand between the air transport industry and airports and the economies and development of the served destinations on the other. More than 140 top executives from air transport, the international banking sector, the financial sector and the tourism industry participated responding to AIA’s invitation. A special highlight of this second Symposium was the announcement of AIA’s active support of the national campaign for the return of the Parthenon Sculptures in Greece. As one of its latest cultural initiatives, AIA “invites” passengers and city visitors to actually vote in the terminal and express their opinion on the matter.

The fact that foreign visitors having Athens as their final destination significantly increased during the last year signifies the effectiveness of such initiatives and the need for strategic synergies with all tourism related organisations, to join forces and continue their aligned cooperation through a long-term strategy establishing Athens as one of the most appealing tourist destinations worldwide. It is with the valuable everyday contribution of every employee that Athens International Airport is distinguished as one of the best and most efficient airports worldwide. With new challenges ahead, we are committed to keep offering the best welcome and farewell for the city of Athens, with customer service being one of the key pillars of our strategy and operations. In this spirit, in 2014 we launched a new, very special corporate programme named “i-mind”. The programme places every employee in the position of a virtual passenger and asks for his/her personal look and care, regardless of job position or rank. Each AIA employee, going through the “i-mind” experience, offers a personal view and assessment of airport services and infrastructure. We believe that this ongoing initiative offers a double opportunity to all: firstly, a different

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1 Joint Address by the Chairman and the CEO


Dr Ioannis N. ParaschisCEO

perspective to “i-mind” users of how to maintain and improve the level of customer service, while also re-discovering and strengthening ties of AIA employees with our everyday working airport environment.

Pursuant to Article 4.2 of the ADA, the Hellenic Republic Asset Development Fund formally invited AIA to negotiate for the potential extension of the concession period for another 20 years, as part of the Greek privatization program and in preparation of the divestment of HRADF’s stake in AIA. These negotiations have not reached conclusion.

AIA had successfully participated in the first phase and was among the prequalified parties in the tender for the privatisation of fourteen Greek regional airports. Following extensive review and investigation of the business, strategic and other qualities of the tender by AIA’s Management, BoD and Shareholders, the Company eventually decided not to submit a proposal.

Following major changes in the business environment, the Company prepared an update of its Business Plan based on a revised traffic forecast, prepared by an external expert adviser. The updated Business Plan demonstrates that the Company remains a healthy, competitive and value-adding enterprise for shareholders, the Greek State, business partners and passengers.

Overall, 2014 was a year of spectacular traffic recovery and positive financial results. Year 2015 is expected to offer us plenty of opportunities but challenges as well. Passenger traffic is expected to continue a dynamic performance powered by growing tourism demand and strong offer increase of our airline partners. At the same time, the Greek aviation environment is likely to change considerably in the light of a possible privatisation of the Greek regional airports. Aiming to further enhance passenger experience and maintain cutting-edge technology at Athens airport, the company will continue to invest in a series of terminal upgrade and technological advancement projects. Of course, evolution of the Greek economy is crucial since any potential relapse to the adverse scenarios relating to the future of the Greek economy will negatively affect or even reverse the potential that we see for 2015.

AIA has demonstrated increased resilience and recently a strong recovery re-approaching the pre-crisis years’ levels, combining financial performance with operational excellence and quality of services. Despite all adversities, past and future, we shall continue our course, adjusting our strategies whenever necessary, in order to deliver financial and non-financial value to our shareholders and all other stakeholder parties.

Dr Ioannis N. ParaschisCEO

ProfessorNickolaos G. TravlosChairman of the Board of Directors

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Annual Report 2014


The Airport companyAthens International Airport S.A. (AIA) was established in 1996 as a public-private partnership with a 30-year concession agreement. Ratified by Greek Law 2338/95, the concession agreement grants the right to use the airport site for the purpose of the ‘design, financing, construction, completion, commissioning, maintenance, operation, management and development of the airport’. AIA is a privately managed company with the Greek State holding 55% of shares (25% Greek State and 30% Hellenic Republic Asset Development Fund-HRADF), while the private shareholders collectively hold 45%.

AIA is internationally considered a pioneer public-private partnership, being the first major greenfield airport with the participation of the private sector. The cost for the development of the airport was financed mainly from bank loans - with European Investment Bank being the major lender, while the remaining funding was provided through private shareholders equity and EU and Greek State grants.

With a corporate goal to create sustainable value to all stakeholders by offering value for money services, AIA has implemented a successful development strategy in both its aeronautical and non-aeronautical sectors. Offering one of the most advanced incentives and marketing support schemes, AIA ensures the sustainability and development of domestic, regional and international traffic, working closely with home carriers and international carriers, legacy airlines and LCCs. In the non-aeronautical sector, AIA boasts advanced and extensive development initiatives ranging from the high-quality consumer-related products offered at its commercial terminals, up to its real estate assets. In addition, AIA’s IT & Telecommunications system and business activities are stellar examples of technological and business expertise. True to its industry, AIA exports the company’s pioneering know-how to aviation partners around the world.

Corporate Profile

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Board of DirectorsProfessor Nickolaos G. Travlos Chairman of the Board of Directors

• Elected Chairman of AIA’s Board of Directors in October 2012.• Dean, ALBA Graduate Business School, 1998 - today• Professor of Finance and Holder of the “Kitty Kyriacopoulos”

Chair in Finance, ALBA Graduate Business School, 1998 - today

• Vice-Chairman of the Board of Directors, Transparency International - Greece, 2012 - today

• Former Chairman of the MSc in Banking and Financial Management, University of Piraeus

• Former Chairman of the Department of Banking and Financial Management, University of Piraeus

• Former Associate Professor of Finance, Boston College, USA, 1990 - 1996

Holger Linkweiler Vice-Chairman of the Board of Directors

• Elected Vice-Chairman of AIA’s Board of Directors in May 2012 and Member of AIA’s Board of Directors since June 2011

• Managing Director of AviAlliance GmbH (formerly HOCHTIEF AirPort) and AviAlliance Capital GmbH & Co. KGaA (formerly HOCHTIEF AirPort Capital)

• Chairman of the Administrative Council of Tirana International Airport

• Member of the Board of Directors of Budapest Airport • Member of the Supervisory Boards of Flughafen Düsseldorf

GmbH and Flughafen Hamburg GmbH

Dr. Jacques F. Poos Member of the Board of Directors

• Elected Member of AIA’s Board of Directors in 2005• Former Member of the College of Quaestors of the

European Parliament• Former Deputy Prime Minister and Foreign Minister

of Luxembourg• Member of the Council of the Luxembourg Central Bank• Governor of the Asia-Europe Foundation (ASEF)• Member of the Board of Bank of China (Luxembourg) S.A.

George Kalamaras Member of the Board of Directors

• Elected Member of AIA’s Board of Directors in October 2012• Former CEO of the société anonyme “ Information

Society S.A.” • Independent Consultant on Information and

Communication Technologies• Owner of a small innovative IT company• Computer and ICT Engineer

Michael Kefalogiannis Member of the Board of Directors

• Member of AIA’s Board of Directors between 2008 and 2009; re-elected in October 2012

• Chairman of the Board of Directors of CYAN Hotel Group (ETXEK S.A.) – Crete, Greece

• Investment Advisor

Constantine Michalos Member of the Board of Directors

• Elected Member of AIA’s Board of Directors in October 2012• President of the Athens Chamber of Commerce and Industry• President of the Union of the Hellenic Chambers of

Commerce• Member of the Board of Directors, Astir Palace Hotel

Loukas Papazoglou Member of the Board of Directors

• Member of AIA’s Board of Directors between 2005 and 2010; re-elected in January 2012

• Financial Advisor

Gerhard Schroeder Member of the Board of Directors

• Elected Member of AIA’s Board of Directors in May 2012• Managing Director of AviAlliance GmbH (formerly

HOCHTIEF AirPort)• Chairman of the Board of Directors of Budapest Airport Zrt.

and Supervisory Board of Flughafen Düsseldorf GmbH• Vice-Chairman of the Supervisory Board of Flughafen

Hamburg GmbH• Former Member of the Supervisory Board of Lufthansa

Technik Budapest Ltd.

Dr. rer. pol. Hans-Georg Vater Member of the Board of Directors

• Member of AIA’s Board of Directors between 1996 and 1999; re-elected in 2000

• Member of the Supervisory Board of Klöckner & Co. SE

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Annual Report 2014


Seating from left to right: Dr. J. Poos, Ms E. Papathanasopoulou (Secretary to the BoD), Prof. N.G. Travlos, Mr H. Linkweiler, Dr. H.G. Vater.Standing from left to right: Mr M. Kefalogiannis, Mr G. Kalamaras, Mr G. Schroeder, Dr I.N. Paraschis (CEO), Mr C. Michalos, Mr Loukas Papazoglou.

Board Committees

Audit Committee:Prof. N. Travlos (Chairman)Dr. H.G. Vater (Member)S. Lorentziadis (Member)

Finance Committee:Dr. H.G. Vater (Chairman)H. Linkweiler (Member)Dr. J. Poos (Member)M. Kefalogiannis (Member)C. Michalos (Member)

Investment Committee:H. Linkweiler (Chairman)G. Kalamaras (Member)G. Schroeder (Member)

Personnel Committee:Prof. N. Travlos (Chairman)H. Linkweiler (Member)Dr. J. Poos (Member)

Composition of Board Committees as per Board of Directors’ decision of 29th November 2012.

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2 The Airport company


Chief Officers

Dr Ioannis N. Paraschis CEO

Mr. Alexandros M. Aravanis Chief Operations Officer

Mr. George P. Eleftherakos Chief Development Officer

Mr. Panagiotis K. Michalarogiannis Chief Finance & Administration Officer

Shareholder Number of Shares %

Hellenic Republic AssetDevelopment Fund (HRADF) 9,000,000 30

AviAlliance GmbH 8,000,004 26.667

Greek State 7,500,000 25

AviAlliance Capital GmbH & Co. KGaA 4,000,002 13.333

Copelouzos Dimitrios 599,997 2

Copelouzou Kiriaki 299,999 1

Copelouzos Christos 299,999 1

Copelouzou Eleni-Asimina 299,999 1

Total 30,000,000 100

Shareholder StructureThe shareholder structure of Athens International Airport, according to the relevant Books of Shares and Shareholders, is:

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Annual Report 2014


154.530

140.448

Market Overview

During the year 2014, a number of important developments gave a spectacular boost to the airport’s traffic evolution. With respect to the airline offer, capacity was significantly enhanced by the dynamic expansion of Aegean’s international network, Ryanair’s entry in the Athens market, as well as the decision of foreign carriers to further invest in Athens. At the same time travelling demand returned to growth, with Greeks gradually returning to air travel assisted by the gradual stabilization of the Greek economy, while foreign visitors in Greece reached record levels in 2014. Apart from the increased wave of incoming visitors to Greece, the city of Athens in particular regained its popularity and welcomed a significant number of foreigners, close to the historical record levels of 2007. Consequently, during 2014 airport’s passenger traffic reached 15.2 million exceeding prior-year levels by 2.7 million passengers which corresponds to a significant increase of 21.2%, whereas the number of flights amounted to 154.5 thousands surpassing the corresponding 2013 levels by 10%.

In terms of passenger demand, both the domestic and the international sectors enjoyed similar levels of growth, whereas in terms of services offered, international flights presented a robust 15.5% increase as a result of a large number of airlines enhancing their international network, while domestic services surpassed prior-year levels by 3.6%.

Overall, in 2014 Athens was directly connected with scheduled services with 109 destinations (of which 77 international) in 42 countries, operated by a total of 56 carriers.

Traffic Development of A/C Movements 2014-2013

Total (thousand movements)

Domestic (thousand movements)

International (thousand movements)

10.0%

2014 2013

3.6%67.228 64.878

15.5%87.302 75.570

3

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The Greek air freight market, following the same pattern with global air freight, exhibited an overall acceleration of volumes with the international sector outpacing the domestic segment. Airfreight volumes reached a total of 77,338 tonnes increasing for the first time (+3.3%) since the beginning of the economic downturn five years ago. Especially the international traffic presented a notable turnaround of 4.6% growth (compared to 2% decline in 2013) outperforming the respective European average (+2.0%). On the other hand, the evolution of the total domestic market has been weak (-6.3%) counteracting positive results of the overall cargo throughput. Similarly, while domestic cargo was reduced by 1.3%, international cargo volumes improved for the second consecutive year by 1.3%.

Passenger Traffic Development 2014-2013

15.196.37012.536.057

21.2%

9.928.9378.236.468

20.5%

5.267.4334.299.589

22.5%

Total (million)

International (million)

Domestic (million)

Cargo Uplift 2014 2013

2014 2013

4.6% -6.3%

International (thousand tonnes) Domestic (thousand tonnes)

Total Cargo Uplift (thousand tonnes)

77.338

74.875

3.3%

68.670 65.626 8.668 9.249

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Annual Report 2014


The significant growth of the airport’s passenger traffic which corresponded to 2.7 million additional travellers is attributed to a series of key factors: a. the stabilization of the economy, reflected in the increased air travelling of Greek residents, with an overall 14% rise, b. the strengthening of the city’s attractiveness, clearly shown in the foreign Athens visitors’ robust upward trend with a remarkable growth of 31% and c. the significant increase in the capacity offered by airlines.

Looking in more detail into the passenger traffic evolution

in the course of the year, the rapid upward trend emerging through all four quarters is worth noting. More so, for the domestic passengers which following a stagnant first quarter showed a positive development in the period April-June, which not only continued during the following quarter but also accelerated in the last one, reaching an outstanding growth of almost 38%. International passenger traffic begun growing from a more positive base than domestic in the first quarter, enjoyed a traffic rise of more than 10% and continued with high quarterly growth rates at the level of 22% in the remaining three quarters.

Looking at the evolution of the international sector it is important to note that with the exception of Africa all other regions enjoyed strong traffic growth, with passengers growing by more than 20%. The 3 main markets of Western Europe, Eastern Europe and Middle East which account

for approximately 96% of the airport’s international traffic, achieved a sharp passenger traffic rise (at 20.1%, 22.9% and 26.0% respectively), at the same time keeping high load factors despite the capacity increase, hence largely formulating the overall result.

Quarterly Passenger Traffic Development 2014

International Passenger Traffic Development per Region 2014

Growth 2014/2013

0.40

24.3

24.1

37.6

13.3

21.8

21.8

22.5

8.4

22.6

22.6

27.5

1st 2nd

3rd 4th

Growth 2014/2013

Domestic International Total

0

10

3020

40

50

0

10

3020

40

50

0

103020

40

50

0

10

3020

40

50

EasTErn EuropE

MIDDlE EasT

afrIca

WEsTErn EuropE

rEsT of asIa

aMErIca

0.9%

27.6%

24.6%

22.9%

26.0%

20.1%

0 155 2010 25 30

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3 Market Overview


35.3%Other4

5

2

8

73

10

9

6

1

Passengers travelling beyond European borders enjoyed an overall high passenger increase, with the major intercontinental destinations presenting double-digit growth levels with the sole exception of Cairo. Ranking

of the non-European destinations remained unchanged compared to 2013, while it is also worth noting that in 2014 Athens was re-connected with Singapore and Bahrain.

Top 10 European Scheduled Destinations

Top 10 Non-European International Scheduled Destinations

11.5%

3.3%

8.2%

4.7%

5.0%

4.9%

3.9%

7.7%

7.4%

8.2%

London

Brussels

Rome

Zurich

Frankfurt

Munich

Milan

Istanbul

Larnaca

Paris

1

2

3

4

5

6

7

8

9

10

Focusing in Europe, London remains the most popular European destination, while Rome gained 2nd position achieving a high passenger traffic growth of 27% and surpassing Paris and Larnaca. Istanbul continued its dynamic growth of 23% and rose from 5th to the 4th place, gradually approaching the passenger traffic levels of the European

“medallists”. German airports of Frankfurt and Munich retained their positions in the European ranking despite their slow development, with Frankfurt almost retaining prior-year levels and Munich witnessing a slow growth of 4%. Zurich, Milan and Brussels achieved strong passenger traffic growth and remained at similar positions as in 2013.

Market share

Market share

7.2%Other

18.4%Dubai

7.1%New York

5.5%Toronto

12.6%Tel Aviv

5.2%Philadelphia

11.1%Abu Dhabi

4.8%Beirut

3.2%Montreal

17.5%Doha

7.4%Cairo

1 2 3 4 5 6 7 8 9 10

10

68 5 3

9

2 1

4

7

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Annual Report 2014


Other

48.2% 38.2%

6.8% 0%

4.0% 4.8%

3.8% 4.0%

3.1% 3.5%

2.8% 15.2%

2.6% 2.9%

2.5% 3.2%

2.3% 2.6%

2.3% 2.8%

21.6% 19.3%

In 2014, the major carriers’ market share in the Athens market has been largely impacted by the acquisition of Olympic Air by Aegean Airlines and subsequent consolidation of services of the two carriers, as well as the dynamic entry of Ryanair in the same market. Given these developments, Aegean Airlines together with Olympic Air accounted for more than half of the airports’ passengers

(51%), while Ryanair within its 10 months of operation managed to become the 2nd largest carrier representing almost 7% of the airport’s passenger throughput. Lufthansa and easyJet follow in the next 2 places, acquiring 4% and 3.8% respectively. Finally it is worth noting that when considering Aegean and Olympic as one, Emirates entered the top 10 of airline partners for the first time.

Top 10 Airlines According to Total Passenger Traffic

Passenger Traffic

2014 2013Market share

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3 Market Overview


In the course of 2014, successful performance of passenger demand was driven by the robust growth of both Greek and foreign residents. Following a declining first quarter, Greek travelers gradually recovered and increased their air travel from April onwards, also supported by the gradual stabilization of the Greek economy. For the total year, passengers residing in Greece grew by a robust 14%, with those on leisure trips rapidly growing by 19%. However, foreign residents were those who presented outstanding levels of growth of 28%, thus reaffirming the resurgence of Athens as an attractive tourist destination. What is even more impressive is that higher growth rates were observed during winter months, a sign for the development of Athens

as a popular year-round destination. As per the mix of O&D vs transfer passengers, both

segments enjoyed strong traffic rise in 2014, signifying both the increased popularity of Athens and the choice of Athens as an intermediate stop. The latter is largely attributed to the increased connectivity offered by enhanced airline operations, especially the rapid expansion of Aegean Airlines’ international network. Increased connectivity through the airport of Athens is also reflected in the strong rise of passengers transferring in Athens between two international destinations, a segment that even though it represents only a small 15% of the total transfer volumes, it demonstrated a remarkable increase of 61%.

Passenger Travelling Behaviour

Passenger Traffic

The entry of Ryanair, as well as the overall dynamic development of low-cost carriers during 2014 resulted in the significantly enhanced presence of LCCs at Athens airport which represented 12% of the domestic and almost

18% of the international passenger traffic. Overall, LCCs doubled their share in the airport’s total traffic from 7.4% in 2013 to 15.7% in 2014.

Low-cost carriers’ share in passenger traffic

O&D & Transfer Greeks & Foreigners

O&D

+22.9%* +29%*

+17.3%* +25%* +7.0%*

Transfer

19.9% 11.6% 16.9%

+19.0%*27.1%80.1% 44.5%

20

5

15

10

0

DoMEsTIc InTErnaTIonal ToTal

0.0 11.3 7.412.4 17.5 15.7

2014 2013

Foreign Business

Foreign Leisure

GR Business

GR Leisure

*Growth 2014/2013

aia.gr / 21

Annual Report 2014


Overall for 2014 the number of flights amounted to 154.5 thousands surpassing corresponding 2013 levels by 10%. International flights presented a robust 15.5% increase, as a result of a large number of airlines enhancing their international network, while domestic services exceeded prior-year levels by 3.6%. The overall domestic flights’ result was formulated by the sharp losses of the first three months of the year (due to the discontinuation of Cyprus Airways’

domestic services, as well as to the rationalization of Aegean Airlines’/Olympic Air’s domestic operations), followed by the gradual elimination of the losses during April and May and the reversal of the negative trend starting in June, with domestic services turning positive for the first time during the last four years and enjoying a strong growth during the period July-December. Especially during the last quarter of the year, domestic operations increased sharply at double-digit levels.

Quarterly Aircraft Movements Development 2014

Development of International Flights per Region 2014Enhanced airline operations in the course of 2014 are also evident from the rapid increase of the offered

services in all international regions with the sole exception of Africa.

Aircraft Movements

Growth 2014/2013

Domestic International TotalGrowth 2014/2013

Africa

-5.2%

Rest of Asia

31.4%

America

15.5%

Middle East

23.0%

Eastern Europe

8.5%

Western Europe

16.7%

-15 0-10 5 10-5 15 20

1sT QuarTEr-11.3%

8.8%-1.0%

2nD QuarTEr

0.6%15.6%8.4%

3rD QuarTEr

7.8%17.4%13.1%

4Th QuarTEr

16.4%18.2%17.4%

22 / aia.gr

3 Market Overview


Focusing on the specifics of the Athens’ cargo market, a variation in the performance of the various market segments is evident. Namely, the overall increase of 3.3% observed is primarily driven by the significant improvement of international freight volumes in both outbound (+6.7%) and inbound (4.2%) flows. On the contrary, international mail posted a 1.1% decline in total exhibiting the same trend noticed in the domestic market; i.e. increasing inbound versus diminishing outbound volumes. Specifically, while

domestic incoming traffic (in both freight and mail) showed signs of improvement (+12.4% and 21.7% respectively), domestic outbound volumes continued to decline (freight by 9.8% and mail by 15.5%) signifying a still weak home market. Finally, it is worth mentioning that despite the unfavorable economic climate during the last six years, the seven airlines operating freighter flights both domestically and internationally maintained their operations unchanged achieving a market share of 38%.

Domestic / International Cargo Uplift 2014 - 2013

Tonnes 2014 2013

Tonnes 2014 2013

Domestic

International

-6.3%

4.6%

Cargo Uplift

Freight In Freight Out12.4% -9.8%

5.7941.208

6.4221.075

Cargo In Cargo Out

4.2% 6.7%

29.91831.105

28.04229.852

Mail In Mail Out21.7% -15.5%

1.058607

1.253499

Mail In Mail Out0.1% -2.9%

3.0484.599

3.1374.595

Cargo In Cargo Out

200008000 400040006000 60002000 80000

10000040000 200002000030000 3000010000 400000

10000040000 200002000030000 3000010000 400000

10000040000 200002000030000 3000010000 400000

200008000 400040006000 60002000 80000

200008000 400040006000 60002000 80000

15.3% -10.7%

6.8531.816

7.6751.574

Freight In Freight Out

3.7% 5.7%

32.96635.704

31.18034.446

aia.gr / 23

Annual Report 2014


Financial Performance

Although economic recovery in Greece was modest, AIA posted significantly growing profits, driven mainly by the successful traffic evolution within 2014. Revenues performance was affected by a series of key market developments in combination with continuing company’s efforts to address and support respective trends: a. stabilisation of the economy, b. reinforcement of the city’s attractiveness, and c. significant increase in the capacity offered by airlines. Meanwhile, AIA managed the substantial traffic increase, sustaining costs at low levels, thus demonstrating that it has become even more efficient and effective without compromising its value-for-money strategy. In 2014 AIA recorded Profit before Tax of € 126.7 million, increased by 34.8% compared to 2013. The following section provides an overview of the company’s financial performance in 2014.

Gr

ou

nd

ha

nd

lin

G &

air

side

ConCessio

ns

Con

sum

ers

ae

ro

na

uti

Cal

Char

Ges

ad

F

Pro

Pert

y

it &

t

9110 50

10 40

20 30

16 42 19 2

Aeronautical Revenues, inclusive of AIA’s share from the Airport

Development Fund, amounted to €214.5 million, contributing the

most to business, with around 61% of total income.

2014 RevenueStructure

%

4

24 / aia.gr

04_Financial Performance_new.indd 24 4/9/15 5:56 PM

2014 vs. 2013 Operating Revenues

Despite significant additional traffic, efforts on the cost side continued within 2014 resulting in practically flat levels of Operating Expenses compared to 2013. It should be noted that increased personnel expenses are mainly driven by the extraordinary benefit recorded in 2013 from the re-assessment of the actuarially based severance indemnity provision - consistent with the changes introduced within 2013 in labour law and pertinent accounting standards. Meanwhile, an adverse variance in extraordinary items this year vs. prior year was to a large extent offset by savings in various cost categories (such as utilities and contracts). Total operating expenses for 2014 amounted to €111.5 million, higher by €3.1 million compared to 2013. The 2014 operating expenses breakdown and comparison against 2013 can be seen in Charts on the right and on the next page.

2014 Operating Expenses StructureTotal

operating expenses for

2014 amounted to €111.5

For 2014, AIA’s revenues inclusive of the company’s share from the Airport Development Fund (ADF) showed an increase of 12.8%, from €311.8 million to €351.7 million. Chart on the left shows the revenue breakdown.

Aeronautical Revenues, inclusive of AIA’s share from the Airport Development Fund, amounted to €214.5 million, contributing the most to business, with around 61% of total income. Revenues from airport charges increased by 18.9% compared to prior year, almost in line with passenger traffic trends. Airport charges remained unchanged, while conforming to its risk sharing philosophy the company continued to implement developmental and targeted incentive schemes. AIA’s share from Airport Development Fund (ADF) reached €66.8 million, showing an increase of 20.3% compared to prior year, corresponding to the passenger traffic increase.

Revenues from non-aeronautical segments reached €137.2 million, higher than prior year’s level by 3.9%. In specific, revenues from Groundhandling and Airside Concessions increased by 16.5% following traffic development trends. Revenues from Commercial activities increased by a moderate 6%, as the unfavourable market conditions driving the gap are still evident; i.e. Greek passengers’ poor spending behaviour, Ryanair passengers lower spending and adverse currency fluctuations negatively affecting the high yield destinations such as Russia and Turkey. Property revenues decreased by 10.8% compared to previous year, mainly due to the reduction of the Photovoltaic feed in tariff as of April 2014 and the additional burden recorded from the retroactive tariff cuts (2013). Finally, IT&T revenues slightly decreased by 1.2%. Chart below depicts AIA’s 2014 income streams vs. those of 2013.

0 40 80 120 160

ADF

AeronAuticAl chArges

grounD hAnDling & AirsiDe concessions

consumers

ProPerty

it & t

other

18.9%

36.4%

-10.8%

16.5%

-1.2%

6.0%

20.3%

124.3

55.5

33.4

54.1

36.2

7.4

0.9

147.7

66.8

38.9

57.4

32.3

7.3

1.3

2014 2013million €

outsourcing & other services

utilities

sAlAries & other emPloyee relAteD exPenses

other oPerAting exPenses

Pr & mArketing

7%

9%

3%

43%

37%

0 10 20 30 40 50 60

311.8€ millionin total

12.8%351.7€ million

growth 2014/2013

market share

aia.gr / 25

Annual Report 2014


oPerAting revenues & ADF

Ebitda including adf

Profit (loss) bEforE tax

Profit aftEr tax

oPerAting exPenses

AmortizAtion & DePreciAtion

FinAnciAl exPenses

totAl corPorAte tAxAtion

AIA’s EBITDA, inclusive of AIA’s share from ADF, reached €240.1 million compared to €203.4 million in 2013. Depreciation charges were recorded at almost the same levels compared to 2013 and amounted to €71.7 million. Financial expenses were higher by €3.6 million due to the extraordinary default interest recorded last year, partly offset by the benefit from the reduced balance of Bank loans. Profit before Tax was recorded at €126.7 million reflecting a significant increase of 34.8% compared to previous year. Corporate taxation for 2014 Profits reached €34.9 million, same as previous year, despite higher profits, since in 2013 the impact on deferred tax due to change in tax rates from 20% to 26% was recorded. Profit after Tax for 2014 reached the level of €91.8 million.

Amid a challenging and fragile environment, with significant traffic growth but still pressures on the business performance, AIA has become even more efficient and effective. The key performance indicators reveal not only a substantial profitability increase, but also improved cost leverage, productivity and margins increase and value creation through efficient use of AIA’s asset base.

Taking into consideration the 2014 financial results after tax, the Transfer to the Statutory and Other Reserves of €4.6 million and the previous year’s remaining retained earnings of €0.2 million, there remains a distributable profit of €87.4 million. The Board of Directors proposes to Shareholders a dividend for 2014 of €2.91 per share for a total dividend payment of €87.3 million.

Profitability

Highlights of the 2014 - 2013 Profit & Loss Statement

0 5050 100100 150150 200 250 300 350

351.7311.8

240.1203.4

126.793.9

91.859.0

111.5108.4

71.771.241.838.2

34.934.9

financial rEsults

mil

lion

€

Table above presents a summary view of the 2014 & 2013 Profit & Loss Statement.

2014 2013

21.7

41.4

21.2

39.2

48.0

2014 vs. 2013 Operating Expenses

0 10 20 30 40 50

outsourceDservices

sAlAries& other emPloyeerelAteD exPenses

other oPerAtingexPenses

mil

lion

€

2014 2013

48.4

26 / aia.gr

4 Financial Performance


Cash Flow 2014AIA not only maintains strong profitability but also manages to show a strong cash position, well above the minimum required level of debt service cover ratios, as these are defined in the EIB loan agreement.

Cash inflow from operating activities stood at €152.5 million compared to €175.8 million in 2013, mainly due to unfavourable working capital variances. Net cash outflow from investing activities reached €5.8 million, compared to inflow of € 2.4 million in 2013, as a result of extraordinary default interest receipts within 2013. Finally, Net cash outflow from financing activities was recorded at €126.6 million, €10.8 million lower outflow than prior year, incorporating the lower dividend payment of 2013 financial results, approved and paid to the shareholders in 2014. Closing cash position for 2014, inclusive of investments in held-to-maturity financial assets, reached €275.6 million, €20.1 million above previous year’s levels.

0 100 200 300 400 500

0 100755025

23.124.9

43.5%35.7%

7.38.6

36.0%30.1%

17.9%11.5%

70.528.9

PErformancE indicators changE

%

%

%

pp

pp

pp

-7.0

7.8

-15.2

5.9

6.4

revenues & ADF/PAx (€)1

revenues & ADF/net Asset vAlue(%)2

oPerAting cost/PAx (€)

Pbt mArgin (%)3

roce (%)4

AvA (million €)5

1 Net Turnover plus ADF / Passengers

2 Net Turnover plus ADF / Net Asset Value (including Works In Progress)

3 Profit Before Tax / Net Turnover plus ADF

4 Operating Profit Before Interest & Tax / Capital Employed

5 AVA: Added Value on Assets = Net Operating Profit after Tax – (Cost of Capital x Net Asset Value)

0

50

100

150

350

200

400

250

450*

300

million €

oPerAting Activities

cash inflow cash outflow cash outflowinvesting Activities

FinAncing Activities

oPEningcash

closingcash

Cash equivalents for 2013 results include €220.5 million of investments in held-to-maturity financial assets. Cash equivalents for 2014 results include €250.8 million of investments in held-to-maturity financial assets.

2014 vs. 2013 Key Performance Indicators 2014 2013

2014 2013

152.5

5.8

126.6

255.

5

275.

6

175.8

2.4

137.4

214.

6

255.

5

522.9461.4

revenues & ADF / Fte (‘000€)6 13.3

6 Net Turnover plus ADF / Full Time Equivalents

aia.gr / 27

Annual Report 2014


Our Business Units

AIA’s organisational structure is designed around four Business Units (Aviation, Consumers, Property and IT & Telecommunications), which hold a combined responsibility for operational excellence and business development. To further reinforce this role, a Value Based Management (VBM) methodology measures the performance of the Business Units against predefined targets on both financial and non-financial metrics and parameters (e.g. systems’ efficiency, quality of services, safety of operations, environmental responsibility, personnel safety, training, etc.).

The main metric that has been selected for measuring financial value creation by the four Business Units is AVA (Added Value on Assets). It measures value created from operating revenues and expenses, also taking into account assets and cost of capital , since airports are largely capital intensive business entities. We have allocated all revenues, costs and assets to the four Business Units and are therefore able to measure financial value creation of their individual business activities, also taking into consideration

indirect expenses and asset-related costs. Financial performance of each Business Unit in terms

of AVA (Added Value on Assets) is presented below. In 2014 AVA was significantly increased compared to 2013 (€70.5 million vs. 28.9 million). The increase of revenues fuelled by the higher traffic experienced in 2014 was the primary driver of this AVA improvement. At the same time our cost control efforts in operating and capital expenses have also allowed us to reap the full benefit of this revenue growth.

AVA per Business Unit Variance AVA per Business Unit 2014-2013

AVA per Business Unit

2014 2013

5

0 10 155 20 25 30 35 4540

AviAtion

Consumers

ProPerty

it&t

Note: The segmentation of the Business Units is for VBM purposes only and not related to regulatory Air-Non Air Acitivites segmentation

0

10

20

30

40

50

60

70

80

AiA AvA 2013

AviAtion vAriAnCe

Consumers vAriAnCe

ProPerty vAriAnCe

it&tvAriAnCe

AiA AvA2014

Note: AVA = Net Operating Profit After Tax - Cost of Capital x Net Assets

28.9

26.5

12.9 1.5 0.6 70.5

milli

on €

milli

on €

28.4

38.8

2.3

0.9

1.9

25.9

0.8

0.3

28 / aia.gr

05_Our_Business_Unit.indd 28 4/9/15 5:56 PM

For another year AIA maintained safe, orderly and efficient aviation operations throughout the year offering high-quality services to aircraft operators, ground-handlers and passengers. Close cooperation with all stakeholders ensured the expected safety level and passenger convenience.

Revenues from airport charges amounted to €147.7 million presenting an increase of 18.9% versus 2013, a result deriving from the overall strong traffic performance and especially the significant growth of passenger demand. Revenues from centralised infrastructure and airside concessions amounted to €38.9 million demonstrating an increase of 16.5% against 2013, positively influenced by the favourable traffic trends.

Our Aviation Safety Services focused on enhancing a series of measures affecting all components of the Safety Management System and the Hellenic Civil Aviation Authority approved the updated Aviation Safety Management System Manual in December. During 2014 AIA continued promoting airport readiness and responsiveness to emergency situations. Ten emergency exercises were conducted within 2014 which included the Full Scale Emergency Exercise “Aircraft Accident on Airport” that took place in November with the participation of more than twenty emergency response stakeholders, including, for the first time, the Air Accident Investigation and Aviation Safety Board (AAIASB). Also, the annual full-scale winter operations exercise, carried out in December, demonstrated the operational readiness and capability of the airport to deal with winter operations assessing

our overall airport capacity to perform snow removal operations both airside and landside.

In the area of ground handling, in accordance with the European and national legislation, we launched a tender for the award of the restricted third-party rights: for Baggage & Ramp, In-Flight Catering Ramp transportation, Freight & Mail and Fuel Into-plane services.

Furthermore, all members of the Athens Airport aviation fuel supply chain were awarded Certificates of Excellence for the 2nd consecutive year by the Joint Inspection Group (JIG). This recognition of excellence is considered a unique achievement for airport fuel chain suppliers worldwide.

The airport security system was successfully tested and audited during several inspections of the pertinent security inspectorate of the Hellenic Civil Aviation Authority. Two security inspections were carried out involving AIA security staff and systems whilst three security inspections were conducted in the field of the Airport’s Known Suppliers’ operation as well in the processes followed by AIA for their nomination.

The Extra Schengen passenger and hand luggage centralised security concept was implemented in December. The new centralised screening checkpoint, located right after the departure passports control, provides ease of access, plenty of space, advanced lighting and a contemporary architectural design; the result is welcomed by passengers, stakeholders and staff as a remarkable improvement of airport operations and passenger experience.

Aviation Business Unit

Revenues from Aeronautical Charges 2014

Market Share

PtF seCurityLAnding PArking

21% 7% 46% 25%

aia.gr / 29

Annual Report 2014


During 2014 AIA continued its dynamic marketing strategy and incentives policy as part of an integrated pricing strategy in order to encourage traffic growth in a targeted yet fully transparent and non-discriminatory manner and to assist airlines to accelerate and enhance their operations to the extent possible. AIA’s aeronautical marketing strategy encompasses comprehensive developmental and targeted programmes for airlines including incentives and marketing support packages and constitutes the cornerstone of AIA’s aeronautical strategy for growth.

AIA maintained all charges unchanged without any increase for the sixth consecutive year. This freezing of charges was complemented by the enhancement of a number of strong targeted schemes for the airlines, throughout the year. Further to the special Low Fares Incentive during winter, which was further enriched by a second tier aiming to encourage airlines to increase the volume of Low Fares and thus to further stimulate demand for air travel, AIA extended three significant targeted incentives throughout 2014, i.e. the Sustainability Incentive, aiming at sustaining and stimulating the airline offer by encouraging airlines to at least maintain the same level of operated flights vs. the previous corresponding period, the Transfer Incentive, focusing on the development of transfer traffic and the Load Factor Incentive, targeted to encourage airlines to increase the amount of passengers per flight. The newly established developmental scheme, Niche Routes Incentive, was also enriched, aiming at attracting new services with niche markets that are currently not operated from Athens.

In total, thirteen different incentives both for development

and sustainability were in effect during 2014. They are applied in a fully transparent and non-discriminatory manner. More than 80% of the operating carriers made use of one or more targeted incentives. Furthermore, more than 40 of our airline partners enjoyed to a significant degree benefits from AIA’s traditional developmental incentives & marketing support. 2014 results and an initial assessment of the offered schemes continue to verify that incentives implemented did manage to successfully deal with the particular issues for which they were introduced. The fact that the Ultra-Low Cost Carrier Ryanair commenced operations from Athens while the share of other Low Cost Carriers also increased, demonstrate the dynamics of the Athens aviation market strongly supported by the competitiveness of AIA’s pricing scheme.

Europe’s largest airline and airport networking route development forum “Routes Europe 2014” (Marseille, 6-8 April) ended with an additional distinction for Athens International Airport in the 4-20 million passengers category in recognition of the continuous, dynamic support it offers to its airline partners in their developmental efforts. Moreover, in the context of the 20th World Route Development Forum, World Routes 2014, the largest annual gathering of airports and airlines, which was held in Chicago (September 20-23) with the participation of 3,000 aviation professionals (airlines–airports-industry experts), AIA received another important distinction and - voted exclusively by airlines - was Highly Commended in the passenger category of 4-20 million passengers in recognition of its continuous actions in addressing efficiently airlines’ efforts to develop new routes and/or to sustain the existing ones. It is noteworthy that in the context of the prestigious

Airport Marketing & Pricing

Aviation Business Unit

Aeronautical Charges 2014 vs. 20132014 2013

0 20 3010 40 50 60 70 80

LAnding

PArking

PtF

seCurity

milli

on €

31.3

10.9

69.1

37.7

28.5

9.8

55.9

31.1

30 / aia.gr

5 Our Business Units


Consumers Business Unit

ROUTES events, Athens International Airport is the most awarded airport with 14 distinctions in 10 years.

Airlines’ contribution to the airport’s performance in 2014 was acknowledged by AIA for the 11th consecutive year by rewarding them for the most successful passenger traffic development during 2014. The awards ceremony, the major airline networking event for Greece which is hosted by AIA, took place in February 2015 during AIA’s 15th Airline Marketing Workshop.

During the last four years, AIA has not only applied active marketing efforts to its Airline & Business partners and Consumers, but has also extended its efforts to actively support its Destination, Athens. Actions to reinforce Athens’ attractiveness as a tourism destination have significantly contributed to the recovery of the city’s image and the increase in foreign tourists’ arrivals to our city. In particular, AIA has implemented a series of destination marketing targeted actions and initiatives by forging strong relationship and strategic co-operations and synergies with tourism organisations and associations (Association of Tourism Enterprises, Greek National Tourism Organisation, Ministry of Tourism, Marketing Greece, etc.). In addition to the above, the “athenspotlighted” city card programme has continued its successful course, which has been further enriched with additional high value partners, while a mobile application and a revamping of the city card is on the way, aiming at providing even more benefits to the foreign visitors of our city.

Also, consistent to AIA’s strategic aim of supporting Athens as a destination, the 2nd Airport Chief Executives’ Symposium (ACES – Athens), an AIA initiative hosted

in Athens, was successfully held on November 18th, at the Acropolis Museum. ACES aims to highlight the interdependence between the air transport industry and airports on the one hand and the economies and the development of the served destinations on the other. This year more than 140 top executives from air transport, the international banking sector, the financial sector and the tourism industry responded to AIA’s invitation. During the Symposium, AIA also announced its most recent initiative aiming at supporting the national campaign for the return of the Parthenon Sculptures in Greece, by inviting passengers and city visitors to vote and express their opinion on the matter at dedicated electronic kiosks in the terminal areas.

Following the success of AIA’s worldwide campaign “Perhaψ you’re an Aθenian too!” which ran during 2014 in 18 airports worldwide addressing more than 170 million passengers per year, a new international campaign under the slogan ”I’m an Aθenian too” was introduced. The new campaign, a joint initiative between Marketing Greece and AIA, invited visitors to declare their ”Athenian’’ identity by sharing through social media their experiences from their visit to Athens .

The fact that the number of foreign visitors with Athens as their final destination significantly increased during the last year denotes the effectiveness of such initiatives and particularly how successful strategic synergies can prove and highlights the necessity for all industry organisations to continue their cooperation with the long-term strategic aim to establish Athens as one of the most appealing tourist destinations worldwide.

Airline Awards 2014CAtegory Winner HigHLy Commended

Best of Top 10 Performance Emirates Aegean Airlines / easyJet

Fastest Growing Airline - Domestic Aegean Airlines -

Fastest Growing Airline - Western europe Transavia.com Vueling / Pegasus Airlines

Fastest Growing Airline - Eastern europe Air Serbia Aegean Airlines / Aeroflot

Fastest Growing Airline - Middle east Aegean Airlines Etihad Airways / EL AL Israel Airlines

Fastest Growing Airline - Africa EgyptAir -

Overall Traffic Development Aegean Airlines Transavia.com

Fastest Growing Airline - Seasonal Route Air Baltic Air Canada / US Airways

Best New Entrant Performance Ukraine International Airlines -

Fastest Growing Airline - Thin Route Bulgaria Air Air Moldova

Highest Ranking European Destination British Airways - London Route -

Highest Ranking non-European Destination Emirates - Dubai Route -

Favourite Airline / European passengers Aegean Airlines -

Favourite Airline / non-European passengers Emirates -

aia.gr / 31

Annual Report 2014


The Company’s aim is to offer a wide spectrum of high quality services and to deliver a unique airport experience to both passengers and visitors while at the same time generate financial value for AIA.

In 2014, the direct revenues of the Consumers Business Unit amounted to €57.4 million, representing an increase of 6.0 %, mostly driven by the commercial revenues rise.

More specifically, the positive traffic developments of 2014 led to an increase in the revenues generated from the retail and food & beverage units of the Airport Shopping Centre. Nevertheless, this significant increase was not at par with traffic growth due to the limited buying capacity of the Greek passengers and the change in the consumer behaviour with the growing presence of low cost carriers.

Throughout the year, areas of the Airport Shopping Centre underwent architectural transformations as part of a broader targeted intervention plan designed and implemented by AIA, which will be completed within the following years.

More specifically, the central catering area was fully renovated including the total revamp of the Airport’s main food court unit offering a new seating and eating concept in the centre of the terminal and allowing for an expanded

apron view in totally refurbished catering outlets. The Extra Schengen area redevelopment is a major upgrade, which includes the security centralisation, the realisation of a commercial walkthrough concept and the creation of additional retail space, and is expected to be fully finalised in early 2015, when all included retail and catering units will be redeveloped in cooperation with the Hellenic Duty Free Shops and F&B operators. Quite importantly, merging the gate lounges with the retail concourse will offer passengers the ability to move freely for shopping and dining before boarding, thus drastically improving their Airport experience. Furthermore, as part of the aesthetic upgrade of the terminal departures area, AIA is proceeding with the cladding of the terminal’s mezzanine level façade with a modern and contemporary veil. These upgrade projects are expected to significantly improve retail and food & beverage sales and strengthen AIA’s commercial revenues whilst at the same time substantially advance passenger satisfaction.

Further to the above and aiming to capitalize upon the positive passenger traffic trend recorded throughout the year, AIA closely cooperated with individual concessionaires, in order to modify and upgrade certain


CommerCiAL CAr PArking otHer CommerCiAL

miLLion €

Consumers Revenues 2014 vs 20132014 2013

0

10

20

30

40

50

42.5 40.1

12.8 12.7

2.11.4

milli

on €

32 / aia.gr




retail and catering units, in terms of product offer, aesthetics and functionality, according to the latest market trends and customer needs. In this context, the brand and product assortment was modified in ten units, eight units underwent complete refurbishment resulting to an aesthetical upgrade and five new brands and concepts were implemented mostly inside departures lounges.

In order to further boost sales and improve customer service, AIA implemented a series of promotional activities and an innovative Customer Evaluation programme called “a vote for a smile”, a customised personnel reward scheme addressing all concessionaires of the Airport Shopping Centre catering sector. Implementation of the “a vote for a smile” increased all parties’ commitment to deliver high quality services to their customers. Additionally, a wide range of targeted marketing approaches were implemented including customised activities linking airlines with specific shopping offers, strong promotional offers for perfumes and cosmetics, a media campaign and social media contests.

With regards to the Airport’s car parking facilities, recorded increase in revenues proved to be marginal despite the traffic increase. This is due mainly to the change of consumer behaviour of Greek O&D traffic,

the primary user of the parking facilities, through the expansion of ultra-low cost carriers whose clientele seem to prefer public transport or car drop-off means.

In order to support sales against competing means of airport access and parking, a new e-Parking service (P3 Holiday) was launched offering high discounts and multiple e-parking seasonal offers, thus strongly supporting e-Parking penetration and assisting AIA’s long-term parking’s performance.

During the year, over 1.25 million airport users interacted with AIA’s Terminal Services staff for airport information and assistance. The Airport Call Centre responded to almost 500,000 calls and managed a high answer rate with nearly 93% of passengers being served within 20 seconds. The “Airport-Info” e-mail service addressed over 2,700 queries.

In recognition of the excellent customer service provided to the public, AIA’s call centre was honoured with the Silver Award in “CRM Grand Prix Customer Service Annual Awards” in the category of “Large Call Centres” in Greece. AIA proceeded to a critical upgrade of its call centre that increased the system’s capacity and considerably improved overall service.

revenue sHAre

Consumers Revenues 2014

0 20 3010 40 50 60 70 9080 100

CommerCiAL

74%

CAr PArking

22%

otHer CommerCiAL

4%

aia.gr / 33

Annual Report 2014


In 2014 the total Property Business Unit’s revenues amounted to €32.3 million, €3.9 million below previous year’s level, with the considerably reduced revenues from the Photovoltaic Park being responsible for this decline. More specifically, revenues accounted in 2014 from AIA’s Photovoltaic Park were significantly reduced as a result of Law 4254/2014 which stipulates a retroactive discount of 35% on 2013 revenues (effected in 2014) and an approximately 27% reduction in the “Feed-in-Tariff” from April 2014.

With regards to the rest property business, despite Athens’ property market continuous decline, AIA witnessed only a marginal drop in revenues compared to 2013. More specifically, building and space leases overall occupancy rate remained at the previous year’s levels, despite the tenants’ propensity to push down operating costs. Also, annual sales of the Airport Retail Park which are directly affected by the reduced disposable income of the Greek consumers only showed a small decline, where signs of recovery were

evident from May onwards. Improved performance was recorded for the

“Metropolitan Expo” Exhibition and Conference Centre at the northern area of the airport. Compared to 2013, leasing exhibitor space was increased by 20%, a result which is mostly due to the hosting of “Poseidonia”, a biannual event, currently the only major Greek exhibition enjoying large international participation.

Among highlights of the year, the Sofitel Athens Airport hotel achieved a 13% increase in room occupancy at an average room rate higher than that of 2013, strongly capitalising on the significant traffic increase enjoyed during the year.

Confirming last year’s indications for future revival of the cargo market within 2014, Cargo Business recorded an increase of 3.3% vs. 2013, managing a throughput of over 77,000 tonnes; it is worth noting that this is the first evident sign of the cargo market recovery in 5-years’ time.

Property Business Unit

Property Revenues 2014 vs 2013million€

*Bui

ldin

g &

Com

mun

al

Property Revenues 2014

CArgo deveLoPment

BuiLding sPACe LeAses

utiLities & B&C*

ProPerty deveLoPment

*Bui

ldin

g &

Com

mun

al

revenue sHAre

2014 2013

0 5 10 15 20

BuiLding sPACe LeAses

ProPerty deveLoPment

utiLities & B&C*

CArgo deveLoPment

15.2

7.2

6.0

3.8

15.2

10.8

6.4

3.8

47%22%19%12%

34 / aia.gr



In 2014, the IT&T Business unit maintained the provision of operational excellence and efficiency as a strategic priority and generated revenues of €7.3 million, at similar levels with 2013.

In 2014, IT&T has embarked on a reorganisation process in order to improve its governance model & assure quality of service in the various offerings towards AIA, the airport community and external customers. Within this context, the strategy adopted relies on three pillars: Operational Excellence, Revenue Generation & Business Focused Governance. In terms of Operational Excellence IT&T focuses in four areas:• Efficiency: Two major activities have been concluded within 2014. Firstly, a new Baggage Handling integrated system was implemented incorporating functionalities that were previously provided by separate systems. Hence, the process has been optimised and baggage handling services were improved. Secondly, a project aiming to upgrade the existing CUTE platform currently serving all airlines in the airport was initiated. The project consists of two phases: the first one, successfully completed within 2014, involved the replacement of the existing Network configuration with a new one. The second phase, due for completion in 2015, concerns the replacement of all desktop equipment as well as internal network devices.• Service: IT&T adopted a service-oriented model & embarked

on an ISO 20000 (IT Service Management) certification process. This will provide means of measuring IT&T performance and the framework within which customers will be supported in a formalised manner through Service Level Agreements.• Operations: Major infrastructure supporting IT&T functions, such as Computer Rooms & Networking facilities, has been reviewed by external experts and consequently a plan for improvement works has been drafted. As a result, resilience will be enhanced whilst operational expenses are expected to be lowered in the coming years.• Customer Experience: AIA focuses its efforts into improving passenger airport experience by providing services that facilitate them throughout their stay in the terminal. In this context passengers enjoy enhanced WiFi services, self-service services such as self-boarding kiosks and flight tracking facilities, as well as cultural & entertainment interactive platforms, namely the “Interactive Table” and the “Vote for the Marbles” kiosks.

In terms of revenue generation, IT&T has commenced to fully redesign the Services Catalogue in order to present a simplified offering. Simultaneously, taking advantage of the existing infrastructure, it has addressed the external market and offers data centre services to medium-size enterprises. The product and services repackaging will continue into 2015.

million€

IT&T Revenues 2014

Cute Wired teLeComs

WireLess teLeComs

dAtA netWork serviCes

vALue Added serviCes

otHer

31%

22% 16% 12%

18%

2%

revenue sHAre

2014 2013

0 0.5 1.0 1.5 2.0 2.5

Cute

Wired teLeComs

WireLess teLeComs

vALue Added serviCes

dAtA netWork serviCes

otHer

2.3

1.6

1.2

0.9

1.3

0.1

1.9

1.9

1.1

0.9

1.5

0.1

IT&T Revenues 2014 vs 2013

Information Technology & Telecommunications Business Unit

aia.gr / 35

Annual Report 2014


6 Corporate ResponsibilityOur sustaining success at Athens International Airport is about running a good business, i.e. acknowledging and responding to diverse stakeholder interests, ensuring productivity while controlling risks, attaining growth while respecting the environment and constraining costs while delivering a positive socio-economic impact.

We believe that there is a strong business case for corporate responsibility and accountability, for respecting globally recognised principles as part of our day-to-day operation. We maintain a corporate reputation of a prudent, respectful and responsible operator that nurtures employee loyalty, secures our dependability towards business partners and drives public confidence in us. In the bottom line, we believe that good business is good for the business itself.

AIA implements an annual CR action plan, focusing on selected material sustainability aspects that are essential for the Company and its stakeholders. Those aspects are identified through a Materiality exercise carried out by the CR Committee with representation across AIA Management.

Through annual reporting and external validation of disclosures by an independent assurance provider, AIA applies international best practices with respect to validity and transparency of disclosures of governance, operational, environmental, social and employee-related activities. In 2014, AIA was one of the first few companies in Greece and among the few European airports to adapt to the Global Reporting Initiative Guidelines (GRI G4), the recently updated and globally acknowledged reporting standard.

36 / aia.gr

06_Corporate_Responsibility.indd 36 4/9/15 5:55 PM

In the continuously evolving aviation operating environment, AIA implements aviation safety and crisis planning management that ensures efficient daily operations through a constructive cooperation among all airport users.

In order to improve aviation safety and resilience against potential operational disruptions, in 2014 we enhanced the scope of our Aviation Safety Management System (SMS).

Since promoting the safety culture across the entire airport community is a priority, a series of related working groups (Safety Review Committee, Safety Action Group and Airside Safety Team) and training sessions took place, as well as specialised initiatives such as the FOD management.

During the first semester of 2014 a training programme was conducted regarding hazard identification and risk assessment. In addition, hazard identifications were performed on airside by both AIA staff and stakeholders. In the same context, our current risk assessment system was evaluated by assessing all airside operations-related hazards. A similar approach is being promoted to all airport stakeholders, encouraging them to submit their own hazard identification reports.

The approval of the Aviation SMS Manual (Aerodrome Operations Manual Volume I) by HCAA was granted in December 2014. This new edition aligns with the new version of ICAO documentation.

Finally, AIA participates in the EU research project “Proactive Safety Performance for Operations (PROSPERO)” aiming at reducing the number of aviation industry incidents in Europe.

Technical and public areas are monitored through inspections in order to ensure that AIA and contractors comply with the corporate health and safety rules and legislation. In 2014, twenty audits to ground handlers, cargo handlers, security, landscaping and maintenance companies took place.

We promote airport readiness and rapid response to emergency situations. Efforts in 2014 focused on training and as a result a large number of operational stakeholders were involved in exercises and workshops.

Ten emergency exercises were conducted in 2014, including the Full Scale Exercise “Aircraft Accident on Airport” of last November that took place in two phases: in the 1st phase, more than twenty emergency response stakeholders participated, including for the first time the Air Accident Investigation and Aviation Safety Board (AAIASB), who rehearsed communications and response operations in case of a mass casualty event. In the 2nd phase, a table-top exercise took place involving the activation of the “Human Losses Management Plan” of General Secretariat of Civil Protection.

The Airport security system was successfully tested and audited at several inspections of the pertinent HCAA security inspectorate. In particular, two security inspections of AIA security staff and systems were carried out whilst additional three in the field of the Airport’s Known Suppliers’ operation as well as of AIA processes for

Operational Responsibility

Crisis Planning and Aviation Safety Management

Aviation Safety Performance

total number of aircraft movements154,530

36.23serious incidents

vs 41.23ιν 2013

100,000aircraft movements

Health & Safety

Crisis Planning

Airport Security

EmErgEncy rEsponsE20

14

111aia emergency response system

casE

s263airport

Hellenicfire corps ca

sEs

4,033airport services emergency medical care

casE

s

aia.gr / 37

Annual Report 2014


their nomination were also conducted. The Extra Schengen passenger and hand luggage

centralised security system was released in operation in December. The new centralised screening checkpoint is located right after the departure passport control booths and provides ease of access and plenty of space in a contemporary architectural design while it enhances airport operations and passenger experience.

Our Airport infrastructure and operations comply with strict Fire Safety regulations. Therefore, we follow our corporate fire safety procedures which are systematically monitored for adherence. Compliance with set procedures is also ensured through intensive training and attested via purpose-specific exercises and audits.

During 2014, fourteen training sessions and two evacuation drills were successfully carried out. Furthermore, compliance with regulations and the proper employee training level of the technical facilities operations were duly audited in a semi-annual/annual basis.

We are committed to provide passengers with a modern, pleasant and hassle-free travel experience through state-of-the-art systems, innovative services and attentive front-line professionals. In 2014, our Call Centre was upgraded enabling an increase of the system capacity and considerably improving the overall service.

Furthermore, during the year we initiated the Corporate Volunteer Programme, with the engagement of almost forty non-operational AIA staff members. The Programme focused on providing passenger care and relief assistance during extended crisis situations.

A signage improvement project was also undertaken in order to enhance transfer passenger experience by providing sufficient information and easy navigation throughout the terminal areas. Moreover, a “self-service e-check-in” service for transfer passengers arriving from an Extra-Schengen country was introduced.

We are strongly committed to provide uninterrupted operations and at the same time promote a collaborative and innovative business environment. Within this context we introduced the “Buy Wi-Fi airtime by credit card” service enabling passengers to pay for the extension of the allocated Wi-Fi time via a credit/debit card, while we provided free wireless internet connection within the terminal beyond the existing “60’ free Wi-Fi”, thus satisfying airline requests to upgrade passenger service during lengthy flight delays or

cancellations. We focus at enhancing passenger experience by continuously improving our IT&T services both within as well as outside the airport community.

AIA served an increased number of PRMs in 2014 (112,834 persons, a 9.7% increase vs 2013). Although only 41% of these passengers had pre-notified their airline for the need and type of assistance services, the PRM system responded in an effective and qualitative manner.

Committed to our mission, i.e. to always provide passengers with exceptional services, we proceeded to a series of targeted high impact interventions at the Main Terminal Building (departures level), part of which were implemented in 2014, the rest being expected to be concluded by early 2015.

In this context, the new Central Food Court was completed in April 2014, allowing for an expanded apron view and leading passengers to a circular course in between totally refurbished Food & Beverage units.

Furthermore, a new walk-through concept meeting the highest retail and aesthetical standards in line with the “first shop then eat” principle is under development in a brand new 2,100 m2 area at the Extra Schengen section. Planned enhancements for 2015 include the merging of Extra

Passenger Service Quality

2013

3.0 min

utEs

10.4%

sEcurity QuEuEing

average securityqueueing time

security passengercomplaints % of total complaints

2014

9.8%

2.0 min

utEs

rEsponsE to calls

of calls sErvEd within 20 sEconds

500,000 call

s

93%

Fire LifeSafety

Persons with disability and/or reduced mobility (PRM)

Terminal Infrastructure Projects

38 / aia.gr

6 Corporate Responsibility


We undertake targeted initiatives in support of the dynamic recovery of Athens as a tourist destination. The 2nd Airport Chief Executive’s Symposium (ACES) is an AIA initiative hosted in Athens in November, with the Minister of Tourism addressing more than 140 high-level executives from the air transport and other business industries. During the Symposium, AIA presented this year’s very positive developments for Greek tourism, prospects for the attractiveness of the destination and aviation industry developments.

Another related AIA initiative was the launch of the “Vote” on the Return of the Parthenon Sculptures to Greece. With the use of an interactive puzzle game, passengers had the opportunity to assemble the Parthenon’s West Metope and place the 6th Caryatis back to its original place, contributing to the national campaign.

In 2014, AIA organised three exhibitions in the “Art and Culture” airport exhibition area:

“My own Iliad” (exhibition of sketches by the Cypriot painter G. Koumouros, in cooperation with Anaplous Cultural & Educational projects), “Secrets of Greece” (photo exhibition under the auspices of the Hellenic National Commission of UNESCO and in cooperation with Geo Routes Cultural Institute) and “Eleonas - Goddess Athena’s Olive Grove” (photo exhibition of urban landscapes by A. Smaragdis, in cooperation with the Hellenic Folklore Research Centre Academy of Athens). Additional exhibitions joining art with environmental causes were hosted. AIA

also supported significant Greek cultural entities as well as the Canadian Museum of History for the major exhibition of Greek antiquities “The Greeks to North America” which travelled for the first time to Canada and the United States.

As part of our “Airport & Children” programme in 2014, we welcomed 5,370 young passengers and their families in the Main Terminal Building children’s play area, staffed by the Association “The Smile of the Child”. In parallel, we provided visitor services to more than 2,000 young visitors offering an insight to the airport facilities and operations.

On the humanitarian front, as part of our annual CR action plan we supported numerous organisations for children and social groups in need.

Our 2014 Local Communities Action Plan included actions regarding education, culture, athletics, society, the

Schengen lounges with the retail concourse and installing a new façade of the 3rd level for a homogenous retail-centre perception along the departures retail corridor.

Passenger satisfaction showed a stable trend in 2014, within a positively developed traffic frame. The Quality Monitor Survey leaded to an overall rating of 4.24 on a 5-point scale, while the ACI’s Airport Service Quality (ASQ)

Survey results similarly reflected AIA’s consistent performance in comparison with other European airports.

A significant addition to AIA’s arsenal of service quality tools was the introduction of the I-mind programme

in July 2014. I-mind is an innovative engagement of all AIA employees as “virtual passengers”, offering their critical view for Airport infrastructure and services through a specifically-developed custom IT application. I-mind was acclaimed at the Hellenic Management Association - Corporate Affairs Excellence Awards with a first prize in the “Company & Stakeholders” category.

Corporate Citizenship

art & culturE

visit tHe airport permanent exHibitions (ArchAeologicAl Findings, Acropolis MuseuM And the exhibition For e. Venizelos)

250,000 pEoplEpEr yEar

Measuring Passenger Satisfaction

Promoting Athens

Art & Culture

Airport & Children

Local Communities

aia.gr / 39

Annual Report 2014


environment, communication and transportation. Due to on-going economic recession AIA continues to focus primarily on the sensitive domains of education and society, thus underlining its role as a social partner. Regularly meetings with local stakeholders help us maintain a constructive relationship which is based on mutual understanding. The most important initiatives for 2014 include: • Constructionofroads in the Spata-Artemis Municipality• Donationofeducational material and equipment to

schools in the Municipalities of Spata-Artemis, Koropi, Markopoulo and Rafina-Pikermi as well as financial

rewards to the top 18 high school students from these municipalities accepted to Greek higher educational institutions and additional support to Spata-Artemis’ schools for their recycling efforts.

• Sponsorshipsonathletic, cultural, humanitarian, public health and environmental awareness related initiatives

• Supportforthe 7th consecutive year of the conservation programme for the Vravrona Wetland, a Natura 2000 site located near the airport which has been transformed into a popular destination for school students and other visitors combining archaeological and environmental attractions.

Environmental Responsibility

In 2014, AIA’s excellence in environmental protection received national recognition in the context of the European Business Awards for the Environment. Specifically, AIA placed first in the “Management” category and was also honoured with a Biodiversity Award for its initiatives aimed at protecting ecosystems in the Mesogeia area. These initiatives include an environmental monitoring team that identifies, records and positively influences the region’s ecosystems, manages fauna and especially birds in the area in order to reduce the risk of collisions with aircraft, and oversees environmental aspects of the airport’s landscaping. These two awards manifest that protecting the environment remains a top priority for AIA and the entire airport community despite the unfavorable economic situation.

Further to a successful annual external assessment in 2014, our Environmental Management System (EMS) remains certified in accordance with the ISO 14001:2004 + Cor 1:2009 standard through January 2016.

AIA’s Airport Carbon Accreditation was renewed at Level 3 (Optimisation) further to the expansion of its carbon footprint to include indirect emission sources and its work to engage other members of the airport community in the fight against climate change. In fact, AIA has managed to reduce its carbon footprint by 33% between 2005 and 2014 following the implementation of a series of energy-saving measures focusing on reducing consumption of electricity, natural gas and vehicle fuel.

Further to its first full year of operation, the Power Quality Optimization System (PQOS) managed to reduce electricity consumption at the MTB by 2,150 MWhs (i.e. 5%) by improving electricity system efficiency and grid stability. This reduction in energy consumption corresponds to a reduction in CO2 emissions by nearly 1,700 tonnes.

AIA’s environmental profile is further bolstered by the 8.05 MWp Photovoltaic Park operating since 2011. The installation produces green electricity while avoids the emission of nearly 12,000 tonnes of CO2 per year with an expected lifecycle of more than 20 years.

The 2014 ClimateChange CorporateAction Plan includedthe following actions

• Replacementofrunwayrubber removal vehicle with a more fuel efficient model

• Enhancementofstakeholderengagement and raise awareness, particularly for transportation issues

• Investigationofoptimalscenario for partial replacement of AIA’s vehicle fleet based on operational, financial and environmental criteria

• Achievementofarecycling rate of 52% (2016 target: 60%)

• Replacementofsix(6) of the Main Terminal Building’s (MTB) existing air-cooled chillers with four (4) more efficient water-cooled chillers

• ReplacementofAIA’sphysicalcomputer servers with virtual ones

• Upgradeoftelephoneand data networks as part of the airport-wide Next Generation Networks (NGN) project

• Conversionofcorporatepaper-based forms to electronic format equivalents

Energy and Climate Change

40 / aia.gr

6 Corporate Responsibility


Employer’s Responsibility

Our people are a valuable resource and a key business differentiator for AIA. Our success depends on them and we aim, at all times, at treating them equitably, provide them with a safe and sustainable working environment and help them to further develop their skills.

We view training and development as a tool to enhance employee knowledge and expertise in order to respond to the ever-changing business demands. In 2014, an e-learning platform was introduced to enhance flexibility and efficiency in training.

In continuance of the Leadership Development programme delivered to AIA Management Team, in 2014 AIA’s Heads followed the course “Supervisory Skills” which aimed at promoting and supporting role.

Furthermore, the team of the seventeen (17) AIA employees delivering Airside Driving Permit Training to airport community staff, attended an intensive “Train the Trainer” course and were certified as Trainers.

The 5-day intensive course “Refresher Training for Front Line Supervisory Functions” was developed internally with the aim to provide and update participants’ knowledge on aviation-related issues and regulatory framework. The airport community was also involved, providing modules related to airline operations, aircraft maintenance vs. airport operations, and ground handling.

In 2014, AIA responded to the pressing youth unemployment issue of Greek society (58% of youth unemployed, 27% total population unemployment rate) with the introduction of the Airport Praxis programme. This programme included two initiatives for people aged 19 to 29; a six month paid employment for thirty young trainees and a three month employment of forty University students or graduates. The Airport Praxis objective was to contribute to the career readiness of these young people through “on the job” training and targeted courses for further developing skills and experience necessary to secure jobs and begin a career path in airport or similar work environments.

Further to the employee opinion survey conducted in 2013, meetings were organised among AIA Management for discussing the survey results and the subsequent action plan was presented to AIA employees.

AIA, true to its objectives to offer better services to all employees, covering their increasing needs and further inspiring their engagement, is continuously developing the new HR Management System. As a result, in 2014 all AIA employees were given access to the e-Leaves and e-Absences modules of the new system, which allowed them to electronically upload their applications.

As a responsible employer aligned with market practices, AIA provides to all open-ended and fixed-term employees and their dependants (a total of 1,940 persons), a Group insurance programme which includes medical, life, and disability, coverage. Also, all open-ended employees are offered a pension programme in which 94.7% of them have selected to participate with their own contribution.

At the end of 2014, our headcount was 623 people under open-ended contracts and 51 under fixed-term contracts. The average age of our employees is 43 years old with a high educational background. Thirty-one per cent (31%) of our personnel reside at the local communities, reflecting our seamless connection with the Mesogeia area.

Implementation of the “Polluter Pays” concept to waste management, such as monetary incentives for recycling at the source, has produced remarkable results.

In 2014, 11,027 tonnes of solid non-hazardous waste were collected, of which 5,746 tonnes were recycled (52%). In addition, 233 tonnes of hazardous waste and 160 kg of medical/clinical waste were collected and transferred to licensed facilities. Finally, airport employees recycled 8 tonnes of non-hazardous and hazardous waste at our Recycling Centre.

AIA remains one of very few airports worldwide that

operates its own Sewage Treatment Plant (STP). In 2014, the STP treated 312,657 m3 of sewage. The treated effluent is used to irrigate non-public airport areas. In addition, AIA’s Industrial Wastewater Treatment Plant treated 3,091 m3 of industrial wastewater.

rEcycling ratE

airp

ort

opEn

ing

2001

20143% 52%

aia’s training plan2014

8,904 13.2hour

s

with 80% of thE EmployEEs attEnding at lEast onE training sEssion

training hours/ pEr ftE

Waste & Effluents

aia.gr / 41

Annual Report 2014


After a year of considerable developments, an impressive traffic recovery and positive financial results, the year ahead promises to bear significant challenges and opportunities:

• Passenger traffic is expected to continue to rise, powered by growing tourism demand and airline capacity increases of the main home carriers but also of other airlines, indicating strong dynamics of the Athens aviation market. It is probably one of the rare periods in the recent years that travel demand and airline supply concur in a rational and healthy manner. As a result, and taking into consideration the already announced airline schedules for the Summer 2015, our initial projections for the year indicate further increase for air travel albeit not at the rates of 2014.

• We shall continue to invest in projects that will enhance passenger experience and maintain cutting-edge technology at Athens International Airport but also bring financial merit. We are currently completing major

changes in the Extra-Schengen departures area, which are anticipated to significantly improve potential of our commercial activities. At the same time we are continuing to ameliorate aesthetics of the departures area by concluding the façade cladding of the mezzanine area, in order to achieve a homogeneous and powerful surface throughout MTB departures level. Arrival level will also undergo targeted aesthetic and architectural works in 2015, with the aim to enhance passenger experience. In 2015 we commence planning the centralisation of the Intra-Schengen passenger screening and the upgrade of the commercial environment and concept of this high passenger traffic area. Finally, a number of investments in the IT&T and technology field which combine automation, passenger satisfaction, business efficiency and information security are planned in order to ensure operational excellence for AIA.

• Greek aviation environment is likely to change considerably in light of the possible privatisation of Greek regional airports. The Company

7 Future Prospects

Taking into consideration the already announced airline schedules for the Summer 2015, our initial projections for the year indicate further increase for air travel albeit not at the rates of 2014.

Summer

2015

42 / aia.gr

07_Future_Prospects.indd 42 4/9/15 5:54 PM

evaluates the strategic implications that this might bring and calculates potential business opportunities.

• Even though we are currently experiencing a hiatus of the negotiations on the potential extension of the Company’s concession period, we continue to believe that a successful completion thereof may significantly benefit all parties: the Company, which will gain valuable lifetime and be able to perform long term planning and development in accordance with the international experience of similar assets; the Greek State which will increase the value and potential attractiveness of its stake in the Company, will gain direct benefits from this transaction and convey a message to international investors; airlines and consequently travellers by a better alignment of the financial recovery of the airport assets’ costs in accordance with their useful life.

Of course, development of the Greek economy is crucial. The results of

2014 might be to a considerable degree attributable to the improvement of the image of Greece and of the city of Athens, but also closely linked to the stabilisation of the Greek economy which commenced within 2014. A potential relapse to the adverse scenarios relating to the future of the Greek economy will negatively affect or reverse the potential that we foresee for 2015.

Although the Company has to be prepared to meet all adversities, our working assumption is that in 2015 the country will head decisively towards stabilisation and recovery. Despite the loss in the country’s GDP of 26% since 2008, AIA has demonstrated increased resilience and recently a strong traffic recovery re-approaching the pre-crisis years’ levels, combining financial performance with operational excellence and quality of services. Despite all adversities, past and future, we shall continue our course, adjusting our strategies whenever necessary, in order to deliver financial and non-financial value to our shareholders and all other stakeholder parties.

Investing in our terminal•Extra Schengen departures area•Facade cladding•Arrivals area aesthetic and

architectural works•Planning of Intra Schengen

passenger and hand luggage screening centralisation

•IT&T technology enhancements

Annual Report 2014

aia.gr / 43

07_Future_Prospects.indd 43 4/9/15 5:54 PM

Financial Statements as at 31 December 2014 (Amounts in Euros unless otherwise stated).

As at 31 december 2014 In accordance with the International financial reporting standards

Sociétés Anonymes Registration Number: 35925/04/B/96/60 General Commercial (G.E.MI) Registration Number : 2229601000.

Financial Statements

1 of 55

Financial_Statement.indd 1 4/9/15 5:53 PM


The attached Financial Statements are those that were approved by the Board of Directors of ATHENS INTERNATIONAL AIRPORT S.A. on 24 March 2015 and have been published by posting on the Internet at the website address www.aia.grThe Financial Statements and the Notes to the Financial Statements, as presented on pages 14 to 55 have been prepared in accordance with International Financial Reporting Standards, as adopted by the European Union, and have been signed, on behalf of the Board of Directors by:

Professor Nickolaos G. Travlos Chairman of the Board of Directors

Holger Linkweiler Vice-Chairman of the Board of Directors

Dr Ioannis N. Paraschis Chief Executive Officer

Panagiotis K. Michalarogiannis Chief Financial Officer

Alexandros Gatsonis Accounting Manager

2 of 55

Annual Report 2014



Dear Sirs,It is a pleasure to welcome you today to the 19th Annual Ordinary General Meeting of the Shareholders of Athens International Airport S.A. (AIA), during which we shall review the year 2014.

According to article 43a, paragraph 3 of Codified Law (C.L.) 2190/1920, as applicable, we submit herewith to your General Assembly the Company’s Financial Statements for its 19th financial period. The present report includes the analysis of these statements as well as any supplementary information necessary or useful for the statements’ appreciation and approval by the General Assembly, according to the proposal of the Board of Directors.

2014 was a good year for the global aviation industry, with passenger traffic remaining resilient in the face of economic uncertainties and geopolitical risks in various parts of the world, benefiting from lower oil prices, lower air fares and increased connectivity. According to IATA and ACI, global air travel expanded by 5,9% in 2014 compared to 2013, exceeding the 10-year average growth rate of 5,6%. At the same time, the worldwide airline industry enjoyed improved net profit margins in 2014, at the level of 2,7% (compared to 1,5% in 2013). European airports grew at similar levels with the global average, enjoying, according to ACI EUROPE, a strong passenger traffic increase of 5,4%, with most of the growth being fuelled by low cost carriers. EU airports significantly outpaced economic performance, re-affirming the resilience of the demand for air travel and reflecting the reliance of consumers and businesses on air connectivity. The EU airports’ growth of almost 5,0% is not significantly below the respective non-EU growth of 7,0%, since growth rates between EU and non-EU airports observed in the last four months of the year almost converged. This is largely attributable to the non-EU airports decelerating levels of growth, mainly because of passenger traffic decline in Ukraine and Russia caused by the geopolitical tension between the two countries.

For AIA, after the last six years of recession, a number of important developments during the year 2014 gave a spectacular boost on the airport’s traffic evolution. With respect to the airline offer, the capacity was significantly enhanced by the dynamic expansion of Aegean’s international network, together with the entry of Ryanair in the Athens market, topped by the investment of foreign carriers in Athens. At the same time travelling demand returned to growth, with Greeks gradually returning to air travel, while foreign visitors in Greece reached record levels in 2014. But apart from the increased wave of incoming visitors to Greece overall, the city of Athens in particular regained its popularity and welcomed a significant number of foreigners, close to the historical record levels of 2007. These traffic developments were realised in a year that the Greek economy, although still in a fragile state, gradually headed towards stabilization. The Greek GDP, following 5 years of depression, returned to a marginal growth since the 2nd quarter of the year and is estimated to reach the small but positive number of +0,7% as per the preliminary figures from the Hellenic Statistical Authority. Consequently, during the year 2014, the airport’s passenger traffic reached 15,2 million, exceeding prior-year levels by 2,7 million passengers, corresponding to a significant increase of 21,2%, whereas the number of flights amounted to 154,5 thousands, surpassing the corresponding 2013 levels by 10,0%.

Driven by the significant traffic increase, together with prudent cost management, AIA posted improved profits, maintaining profit margins above the average airport industry and other major Greek companies. The Company’s achievement to handle substantial traffic increase, while sustaining costs at low levels and maintaining high quality of services, attests to the fact that it has become even more efficient without compromising its value-for-money strategy. This efficiency improvement was acknowledged by the award from Air Transport Research Society (ATRS) with the 2014 Top Efficiency Excellent Award. Crowning the overall successful performance in 2014, Athens International Airport won the 10-25 million passenger category in this year’s 10th “Best Airport Awards” of the ACI EUROPE Annual Congress in Frankfurt. This award commended AIA’s “high economic performance in a very challenging context, its excellent work in redeveloping its traffic base while keeping a strong focus on the quality of service”.The Company recorded during 2014 Profit before Tax of €126,7 million and a distribution of €87,3 million as dividend to its shareholders is proposed.

Reporting by the BoD to the Annual General Meeting of the Shareholders

3 of 55



1. Traffic HighlightsDuring a year of structural changes for the Athens aviation industry, AIA’s traffic amounted to 154,5 thousand flights and 15,2 million passengers, presenting a robust growth vs. the corresponding prior-year levels of +10,0% and +21,2% respectively. The significant growth of the airport’s passenger traffic which corresponded to 2,7 million additional passengers was achieved through the successful performance of both domestic and international sectors that presented similar levels of growth (+22,5% and +20,5% respectively). This favourable outcome is attributed to a series of key factors:

• the stabilization of the economy, reflected in the increased air travelling of Greek residents, with an overall 14,0% rise,

• the strengthening of the city’s attractiveness, clearly shown in the foreign Athens visitors’ robust upward trend with a remarkable growth of 31,0% and

• the significant increase in the capacity offered by airlines supported by the Airport Company’s incentives’ policy as part of an integrated pricing strategy.

Looking at the evolution of the international sector it is important to note that, with the exception of Africa, all other regions enjoyed strong traffic growth, with passengers growing by more than 20,0%. The 3 main markets, Western Europe, Eastern Europe and Middle East, accounting for approximately 96,0% of the airport’s international traffic, achieved sharp passenger traffic rise (at the level of 20,1%, 22,9% and 26,0% respectively), keeping at the same time high load factors despite the capacity increase and largely formulated the overall result. Overall, in 2014 Athens was directly connected with scheduled services with 109 destinations (77 international) in 42 countries, operated by a total of 56 carriers.

2. Business HighlightsThe Company’s business highlights for the year 2014 are presented hereunder:

2.1 Airport OperationsFor another year, our Aviation Business Unit maintained safe, orderly and efficient aviation operations, throughout the year, offering high-quality services to aircraft operators, ground-handlers, and passengers. The close cooperation with all stakeholders ensured the expected safety level and passenger convenience.

Our Aviation Safety Services focused on enhancing a series of measures affecting all components of the Safety Management System and the updated Aviation Safety Management System Manual was approved by the Hellenic Civil Aviation Authority in December. During 2014, AIA continued promoting airport readiness and responsiveness to emergency situations. Ten emergency exercises were conducted within 2014, including the Full Scale Emergency Exercise “Aircraft Accident on Airport” that took place in November with the participation of more than twenty emergency response stakeholders, including, for the first time, the Air Accident Investigation and Aviation Safety Board (AAIASB). Also, the annual full-scale winter operations exercise, carried out in December, demonstrated the operational readiness and capability of the airport to deal with winter operations, assessing our overall airport capacity to perform snow removal operations both airside and landside.

In the area of ground handling, in accordance with the European and national legislation, we launched a tender for the award of the restricted third-party rights: for Baggage & Ramp, In-Flight Catering Ramp transportation, Freight & Mail and Fuel Into-plane services. The successful bidders will commence their operation under the new contracts by the end of March 2015.

Furthermore, Certificates of Excellence were awarded for the 2nd consecutive year, by the Joint Inspection Group (JIG) to all members of the Athens Airport aviation fuel supply chain. This excellence recognition is considered a unique achievement for airport fuel chain suppliers worldwide.

The airport security system was successfully tested and audited at several inspections of the pertinent security inspectorate of the Hellenic Civil Aviation Authority. In particular, two security inspections were carried out involving AIA security staff and systems whilst three security inspections were conducted in the field of the Airport’s Known Suppliers’ operation as well in the processes followed by AIA for their nomination.

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The Extra Schengen passenger and hand luggage centralized security concept was implemented in December. The new, centralized screening checkpoint, located right after the departure passports control, provides ease of access, plenty of space, advanced lighting and a contemporary architectural design; the result is welcomed by passengers, stakeholders and staff as a remarkable improvement of airport operations and passenger experience.

2.2 Airport Marketing & PricingDuring 2014, AIA continued its dynamic marketing strategy and incentives’ policy as part of an integrated pricing strategy in order to encourage traffic growth in a targeted yet fully transparent and non-discriminatory manner and to assist airlines to accelerate and enhance their operations to the extent possible. AIA’s aeronautical marketing strategy encompasses comprehensive developmental and targeted programmes for airlines, including incentives and marketing support packages, constituting the cornerstone of AIA’s aeronautical strategy for growth.

AIA maintained all charges unchanged without any increase for the sixth consecutive year. This freezing of charges was complemented by the enhancement of a number of strong targeted schemes for the airlines, throughout the year. Further to the special Low Fares Incentive during the winter, which was further enriched by a second tier aiming to encourage airlines to increase the volume of Low Fares and thus to further stimulate demand for air travel, AIA extended throughout 2014, three significant targeted incentives, i.e. the Sustainability Incentive, aiming at sustaining and stimulating the airline offer by encouraging airlines to at least maintain the same level of operated flights vs. the previous corresponding period, the Transfer Incentive, focusing on the development of transfer traffic and the Load Factor Incentive, targeted to encourage airlines to increase the amount of passengers per flight. The newly established developmental scheme, Niche Routes Incentive, was also enriched, aiming at attracting new services with niche markets that are currently not operated from Athens.

In total, thirteen different incentives addressing both development and sustainability aspects were in effect during 2014. These incentives are applied in a fully transparent and non-discriminatory manner. Indeed, more than 80,0% of the operating carriers took advantage of one or more targeted incentives. Furthermore, more than 40 of our airline partners significantly enjoyed the benefits from AIA’s traditional developmental incentives & marketing support. The 2014 results and an initial assessment of the offered schemes continue to verify that the incentives implemented, managed to successfully deal with the particular issues for which they were introduced. The fact that the Ultra-Low Cost Carrier Ryanair commenced operations from Athens and at the same time the share of other Low Cost Carriers also increases, demonstrate the dynamics of the Athens aviation market strongly supported by the competitiveness of our pricing scheme.

Europe’s biggest airline and airport networking route development forum “Routes Europe 2014” (Marseille, 6-8 April), was completed with an additional distinction for Athens International Airport, in the 4-20 million passengers category, in recognition of the continuous, dynamic support it offers to its airline partners in their developmental efforts. Moreover, in the context of the 20th World Route Development Forum, World Routes 2014, the biggest annual gathering of airports and airlines, which was held in Chicago (September 20-23) with the participation of 3.000 aviation professionals (airlines–airports-industry experts), AIA received another important distinction and -voted exclusively by airlines- was Highly Commended in the passenger category of 4-20 million passengers, in recognition of its continuous actions in addressing efficiently airlines’ efforts to develop new routes and/or to sustain the existing ones. It is noteworthy that, in the context of the prestigious ROUTES events, Athens International Airport is the most awarded airport with 14 distinctions in 10 years.

The contribution of airlines to the airport’s performance in 2014 was acknowledged by AIA for the 11th consecutive year by rewarding airlines for the most successful passenger traffic development during 2014. The awards ceremony, the major airline networking event for Greece, was hosted by AIA and took place in February 2015 during AIA’s 15th Airline Marketing Workshop.

During the last four years, AIA has applied active marketing efforts not only to our Airline & Business partners and to Consumers, but has extended its efforts to actively support our Destination: Athens. These actions towards the enhancement of Athens’ attractiveness as a tourism destination, have significantly contributed to the recovery of the city’s image and the increase in foreign tourists’

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arrivals to our city. In particular, AIA has implemented a series of destination marketing targeted actions and initiatives by forging strong relationship and strategic co-operations and synergies with tourism organisations and associations (Association of Tourism Enterprises, Greek National Tourism Organisation, Ministry of Tourism, Marketing Greece, etc.). In addition to the above, the “athenspotlighted” city card programme has continued its successful course, which has been further enhanced with additional high value partners, while a mobile application and a revamping of the city card is on the way, aiming at providing even more benefits to the foreign visitors of our city.

Also, in line with our strategic aim of supporting Athens as a destination, the 2nd Airport Chief Executives’ Symposium (ACES – Athens), an AIA initiative hosted in Athens, was successfully held on November 18th, at the Acropolis Museum. ACES aims to highlight the interdependence between the air transport industry and airports, on the one hand and the economies and the development of the served destinations, on the other. This year, more than 140 top executives from air transport, the international banking sector, the financial sector and the tourism industry, responded to AIA’s invitation. In the framework of the Symposium, AIA also announced its most recent initiative aiming at supporting the national campaign for the return of the Parthenon Sculptures in Greece, by “inviting” passengers and city visitors to vote and express their opinion on the matter at dedicated electronic kiosks in the terminal areas.

Following the success of AIA’s worldwide campaign “Perhaψ you’re an Aθenian too!” which ran during 2014 in 18 airports addressing more than 170 million passengers per year a new international campaign under the moto ”I’m an Aθenian too”, was introduced. The new campaign was a joint initiative between Marketing Greece & AIA inviting visitors to declare their ”Athenian’’ identity by sharing their experiences from their visit to Athens through social media.

The fact that foreign visitors having Athens as their final destination increased significantly during the last year signifies the effectiveness of this kind of initiatives and in particular the successful outcome of strategic synergies highlighting the need for all tourism related organizations to continue their aligned cooperation focusing on a long-term strategy aiming at establishing Athens as one of the most appealing tourist destinations worldwide.

2.3 ConsumersThe Company’s aim is to offer a wide spectrum of high quality services and to deliver a unique airport experience to both passengers and visitors while at the same time generate financial value for AIA.

The positive traffic developments of 2014 led to an increase in the revenues generated from the retail and food & beverage units of the Airport Shopping Centre. Nevertheless, this significant increase was not at par with traffic growth due to the limited buying capacity of the Greek passengers and the change in the consumer’s profile with the growing presence of low cost carriers.

Throughout the year, specific targeted areas of the Airport Shopping Centre went through architectural transformations as part of a broader targeted intervention plan, designed and implemented by AIA, which will be completed within the following years.

More specifically, the central catering area was fully renovated including the total revamp of the Airport’s main food court unit offering a new seating & eating concept in the center of the terminal and allowing for an expanded apron view in totally refurbished catering outlets. The Extra Schengen area redevelopment is a major upgrade, which includes the security centralization, the creation of a commercial walkthrough concept and the creation of additional retail space, and is expected to be fully finalized in early 2015, where all included retail and catering units shall be developed anew in cooperation with the Hellenic Duty Free Shops and the F&B operators. Quite importantly, merging the gate lounges with the retail concourse will offer passengers the ability to move freely for shopping and dining before boarding, drastically improving their Airport experience. Furthermore, as part of the aesthetic upgrade of the terminal departures area, we are proceeding with the cladding of the terminal’s mezzanine level façade with a modern and contemporary veil.

These upgrade projects are expected to significantly improve the retail and food & beverage sales and improve AIA’s commercial revenues whilst at the same time materially enhance the passengers’ satisfaction.

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Further to the above and aiming at the capitalization of the positive passenger traffic trend recorded throughout the year, AIA closely cooperated with individual concessionaires, towards the modification and upgrade of specific retail and catering units, in terms of product offer, aesthetics and functionality, thus aligning the Airport Shopping Centre’s commercial orientation with the latest market trends and customer needs. Within this framework, the brand and product assortment of ten units was modified, the full refurbishment of eight units was performed resulting to their aesthetical upgrade, and five new brands and concepts were implemented, mostly inside departures lounges.

Aiming at further supporting sales and at improving customer service practices, AIA implemented a series of promotion activities as well as innovative Customer Evaluation program (i.e. “a vote for smile” – a customized personnel reward scheme), addressing all concessionaires comprising the catering sector of the Airport Shopping Centre; implementing the latter, a further increase of all parties’ commitment towards the delivery of high level of services to the customer was achieved. Additionally, a wide range of targeted marketing approaches were implemented, including customized activities linking airlines with specific shopping offers, strong promotional offers for perfumes and cosmetics, a media campaign and social media contests.

With regards to the Airport’s car parking facilities, the recorded increase in revenues was marginal, despite the traffic increase. This is due mainly to the change of commercial behavior of Greek O&D traffic –which is the primary user of the parking facilities- through the expansion of ultra-low cost carriers, whose clientele is more inclined towards the use of public transport or car drop-off means.

In order to support sales against competing means of airport access and parking, a new e-Parking service (P3 Holiday) was made available for parking customers during the year, offering high discounts and multiple e-parking seasonal offers, strongly supporting e-Parking penetration and assisting our long-term parking’s performance.

During the year, over 1,25 million airport users interacted with AIA’s Terminal Services staff for airport information and assistance. The Airport’s Call Centre responded to almost 500.000 calls and managed a high answer rate with nearly 93,0% of passengers being served within 20 seconds. The “Airport-Info” e-mail service addressed over 2.700 queries.

In recognition of the excellent customer service provided to the public, AIA’s call centre was honoured with the Silver Award in “CRM Grand Prix Customer Service Annual Awards” in the category of “Large Call Centres” in Greece. AIA’s call centre received a critical upgrade that considerably improved overall service and enabled the system’s capacity increase.

2.4 Property Although the Greek economy showed in 2014 some early signs of recovery, the Athens property market continued its decline, still, AIA’s property business realized only a marginal drop in revenues compared to 2013.

More specifically, buildings and space leases’ overall occupancy rate remained at the previous year’s levels, despite the tenants’ propensity to push down operating costs. Also, the Airport’s Retail Park annual sales, which are directly affected by the reduced disposable income of the Greek consumers, showed only a small decline, where signs of recovery were evident from May onwards.

An improved performance was recorded for the “Metropolitan Expo” Exhibition and Conference Centre at the northern area of the airport. Compared to 2013, the leasing of exhibitors’ space increased by 20,0%, a result which is mostly due to the hosting of “Poseidonia”, a biannual event which is currently the only major Greek exhibition enjoying large international participation.

Among the highlights of the year, the Sofitel Athens Airport hotel achieved a 13,0% increase in rooms occupancy at an average room rate higher vs. 2013, strongly capitalizing on the significant traffic increase enjoyed during the year.

Confirming last year’s indications for future revival of the cargo market within 2014, Cargo Business recorded an increase of 3,3% vs. 2013, managing a throughput of over 77.000 tonnes; it is worth noting that this is the first evident sign of the cargo market recovery in 5-years’ time.

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The revenues that were accounted in 2014 from AIA’s Photovoltaic Park were reduced significantly as a result of Law 4254/2014, stipulating a retroactive discount of 35,0% on 2013 revenues (effected in 2014) and an approximately 27,0% reduction in the “Feed-in-Tariff” from April 2014.

2.5 Information Technology & Telecommunications IT&T has embarked on a reorganization process in order to improve its governance model & assure quality of service in the various offerings towards the Company, the airport community and external customers. Within this context, the strategy adopted relies on three pillars: Operational Excellence, Revenue Generation & Business Focused Governance.

In terms of Operational Excellence IT&T focuses in four areas:• Efficiency: Two major activities have been concluded within 2014. Firstly, a new Baggage Handling

integrated system was implemented incorporating functionalities that were previously provided by separate systems. Hence, the process has been optimized and baggage handling services were improved. Secondly, a project aiming to upgrade the existing CUTE platform currently serving all airlines in the airport was initiated. The project consists of two phases: first phase that was successfully completed within 2014 involved the replacement of the existing Network configuration with a new one. The second phase which is due for completion in 2015 involves the replacement of all desktop equipment as well as the internal network devices.

• Service: IT&T adopted a service-oriented model & embarked on an ISO 20000 (IT Service Management) certification process. This service will provide means of measuring IT&T performance, as well as the framework within which customers will be supported in a formalized manner through Service Level Agreements.

• Operations: Major infrastructure supporting IT&T functions, such as Computer Rooms & Networking facilities, has been reviewed by external experts and consequently a plan for improvement works has been drafted. As a result, resilience will be enhanced whilst operational expenses are expected to be lowered in the coming years.

• Customer Experience: AIA focuses its efforts into enhancing passenger airport experience by providing services that facilitate passengers throughout their stay in the terminal. In this context passengers enjoy enhanced WiFi services, self-service such as self-boarding kiosks & flight tracking facilities, as well as cultural & entertainment interactive platforms such as the “Interactive Table” or the “Vote for the Marbles” kiosks.

In terms of revenue generation IT&T has commenced the full redesign of the Services Catalogue in order to simplify the offering. Simultaneously, IT&T has addressed the external market offering data center services to medium size enterprises, taking advantage of the existing infrastructure. The product - services repackaging will continue into 2015.

2.6 Other Corporate Projects & Developments With regards to other major developments, the following are notable:• Regarding the dispute with Athenian Engineering (formerly Olympic Engineering) on the Homebase

Contract, the LCIA whereupon the matter had been referred, has issued its decision on 22 January 2015 and notified it to AIA on 12 February 2015. Based on this decision, the Arbitral Tribunal orders AIA, through its Award, to pay an amount of €3.526.801,91 plus legal interest as of 13/09/2013 until payment (the amount initially requested by Athenian Engineering S.A. was €43.545.500). This amount was reached by determining the Commercial Value of 85,0% of the Leased Area at €14.195.000 and deducting (from this amount) a sum of €10.668.198,09 corresponding to debts owed by Athenian Engineering S.A. to AIA.

• Developments on all pending tax disputes with Tax Authorities are analytically referred in disclosures 5.28 and 5.30 of the Notes to the Financial Statements.

• Following the major changes in the business environment, the Company prepared an update of its Business Plan. The Business Plan was based on a revised traffic forecast which was prepared by an external expert adviser. This adviser took into account all the recent changes in the market environment and -together with all other necessary business and strategic assumptions- developed short, medium and long-term traffic forecasts. The Business Plan also addressed the Company’s outlook on key value drivers such as pricing, investments and commercial activities. The updated Business Plan demonstrates that the Company remains a healthy, competitive and value-adding enterprise for shareholders, the Greek State, business partners and passengers.

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• Pursuant to Article 4.2 of the ADA, the Hellenic Republic Asset Development Fund (HRADF) formally invited AIA to negotiate for the potential extension of the concession period for another 20 years, as part of the Greek privatization program and in preparation of the divestment of HRADF’s stake in AIA. The potential extension would be conditional to the successful sale of the offered HRADF shares of AIA. For the purpose of the negotiations on the potential extension of the concession period, AIA engaged external financial advisers, who prepared, with the input from AIA, a financial model with mid- and long-term financial projections, including the projections for a 20-year extension of the concession period. Following relevant clearance from the Board of Directors, these projections were submitted to the advisers that the Greek State has engaged for this purpose. The negotiations for the extension of the concession period have not reached conclusion.

• In 2014, HRADF proceeded with the second phase of the tender for the award of the concession for the exploitation and provision of services in relation to the operation and management of 14 Greek regional airports. AIA had successfully participated in the first phase and was among the prequalified parties. Following extensive review and investigation of the business, strategic and other qualities of the tender by AIA’s Management, BoD and Shareholders, the Company eventually decided not to submit a proposal.

3. Corporate Responsibility AIA implements an annual Corporate Responsibility (CR) action plan, focusing on selected material sustainability aspects that are essential for the Company and its stakeholders. Those aspects are identified through a Materiality exercise carried out by the CR Committee with representation across AIA Management. Through annual reporting and external validation of disclosures by an independent assurance provider, AIA applies international best practices with respect to validity and transparency of disclosures on governance, operational, environmental, social and employee-related activities.

3.1 Operational ResponsibilityIn 2014, AIA continued improving aviation safety and resilience by widening the scope of the Safety Management System through enhancements on policy and objectives, risk management, assurance and safety promotion. Priority was placed on safety awareness across the entire airport community through working groups, meetings and training sessions, as well as targeted initiatives such as Foreign Object Damage (FOD) management. A significant safety assessment was performed and successfully concluded during 2014 by a group of assessors representing ACI, ICAO and major airports, under the umbrella of the ACI APEX assessment program.

In the context of the Crisis Planning & Emergency Management, during 2014 AIA concentrated in promoting airport readiness for responding promptly to emergency situations and adversities, while also pursuing its relevant objectives, through a series of specialized trainings and workshops.

Safety records demonstrated a consistently improving performance. Aiming at further improving the overall safety performance and staff awareness, AIA also organized a series of trainings and safety activities, including airside safety awareness presentations, meetings with stakeholders, and safety campaigns at the airside. In May, AIA held a workshop on crisis management communication processes, aiming at strengthening cooperation amongst all stakeholders for the timely and effective handling of crisis communications at the airport. Special emphasis was placed on issues of coordination with stakeholders in the field of communication with the wide public, the media and other networks including social media.

With regards to airport fire life safety, fourteen training sessions and two successful evacuation drills were implemented. Additionally, during 2014, the Corporate Volunteer Program was initiated to engage non-operational AIA personnel (almost 40 employees) in the execution of a contingency plan for the provision of passenger care and relief assistance in case or extended crisis situations.

3.2 Passenger Service QualityPassenger satisfaction showed a stable trend in 2014, despite the increasing traffic levels and the disruptions caused by terminal works. The overall rating of AIA’s Quality Monitor Survey was at 4,24 on a 5-point scale, while the ASQ Survey conducted under ACI presented overall a similar picture for

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AIA’s performance in comparison with other European airports.

A significant addition to AIA’s arsenal of Service Quality tools was the introduction of the i-mind programme in July 2014. i-mind is an innovative engagement of all AIA employees as “virtual passengers”, offering their critical view for Airport infrastructure and services through a custom made IT application. i-mind was acclaimed at the Hellenic Management Association - Corporate Affairs Excellence awards with a first prize award in the “Company & Stakeholders” category.

AIA served an increased number of persons with disability and/or reduced mobility (PRM) in 2014 (112.834 persons, a 9,7% increase vs. 2013).

3.3 Corporate CitizenshipBearing the role of a cultural hub for travellers and visitors, AIA participates in the cultural life of Athens, addressing 250.000 people per year visiting the airport permanent exhibitions (Archaeological Findings, Acropolis Museum and the exhibition for Eleftherios Venizelos).

In 2014, AIA organised three exhibitions in the “Art and Culture” airport exhibition area: • “My own Iliad”, an exhibition of sketches by the Cypriot painter G. Koumouros, in cooperation with

Anaplous Cultural & Educational projects • “Secrets of Greece”, a photo exhibition under the Auspices of the Hellenic National Commission of

UNESCO and in cooperation with Geo Routes Cultural Institute, and • “Eleonas - Goddess Athena’s Olive Grove”, a photo exhibition of the urban landscape “Eleonas” by A.

Smaragdis in cooperation with the Hellenic Folklore Research Centre Academy of Athens.

Additional exhibitions linking art with environmental causes were hosted in the “Art & Environment” exhibition area: the photo exhibition “Journey to underwater Greece” was organised in cooperation with the non-profitable organisation “Ydronaftes”, and the photo exhibition titled “Life Embracing rock”, which promotes the rare beauty of the landscape of Crete’s Lefka Ori (White Mountains), in cooperation with the Management Body of Samaria National Park Exhibition. Furthermore, in cooperation with Athens Video/Art Festival, AIA hosted the multimedia exhibition “Feel Free to Feel Green” focused on the diverse environmental issues in modern societies and ecosystems. AIA also provided support to major Greek cultural entities.

As part of the “Airport & Children” programme, AIA welcomed 5.370 young passengers and their families in the MTB children’s play area, staffed by the Association “The Smile of the Child”. In parallel, visitor services were provided to more than 2.000 airport young visitors. On the humanitarian front, within our annual CR programme, AIA supported numerous organisations for children and social groups in need.

AIA engages the neighboring communities in a continuous dialogue on issues of common concern. In the context of its role as a social partner, different initiatives were implemented through the 2014 Local Communities Action Plan, focusing primarily on the sensitive areas of education and society. The most important initiatives included the reward recycling program for local schools, scholarships and financial student rewards as well as transportation, humanitarian, public health, athletic, cultural and environmental initiatives, such as the programme to protect and promote the nearby Vravrona Wetland.

3.4 Environmental Responsibility AIA was recognized for its best practices during the 2014 European Business Awards for the Environment. Specifically, the Greek Federation of Environmental Companies awarded the airport with 1st place in the “Management” category as well as an award for the “Biodiversity” for its initiatives aimed at protecting ecosystems in the area of Mesogeia.

In 2014, AIA renewed its certification at Level 3 of Airport Carbon Accreditation and took action to further engage the airport community against climate change. Since 2005, AIA has managed to reduce annual electricity consumption by 21,0% (13,8 GWh) which in combination with additional measures to reduce emissions from other sources have resulted in a 33,0% reduction in AIA’s carbon footprint (22.000 tonnes of CO2 per year).

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AIA maintained its ISO 14001 certification of its Environmental Management System following a successful audit by an independent body.

By implementing a waste management concept based on the “Polluter Pays” principle, which incorporates financial incentives to promote recycling across the airport site, AIA has managed to increase the recycling rate to 52,0%.

Focusing on energy savings, the Power Quality Optimization System has achieved a reduction in MTB’s electricity consumption by 2.150MWh during its first full year of operation, improving the respective CO2 emission footprint by nearly 1.700 tonnes. Moreover, four new Water Cooled Chillers were installed at the MTB, expecting to reduce electricity consumption by 5.100MWh annually. AIA’s environmental profile is bolstered by the 8,05 MWp Photovoltaic Park, avoiding nearly 12.000 tonnes of CO2 annually.

3.5 Employer’s Responsibility At the end of 2014, AIA’s headcount was 623 people under open-ended contracts and 51 under fixed-term contracts. As a responsible employer aligned with market practices, AIA provides to all open-ended and fixed-term employees and their dependants, a health group insurance programme. Also, all open-ended employees are offered a pension programme in which 94,7% of them have selected to participate with their own contribution.

AIA’s Training Plan in 2014 involved a total of 8.904 hours, with 80,0% of the employees attending at least one training session. The number of training hours provided to employees is the equivalent of 13,2 hours per Full Time Equivalent employee. In order to facilitate the delivery of training, and better accommodate the needs of our shift employees, an e-learning platform has been introduced in 2014.

In 2014, AIA responded to the pressing youth unemployment issue of Greek society with the introduction of the Airport Praxis programme. This programme included two initiatives for people aged 19 to 29: a six month paid employment for 30 young trainees and a three month paid employment of 40 University students or graduates. The objective of the Airport Praxis initiative was to contribute to the career of these 70 young people through “on the job” training and targeted courses for further developing skills and experience necessary to secure jobs and begin a career path in airport or similar work environments.

4. 2014 Financial Statements’ Highlights The Financial Statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) and the Accounting Policies approved by the Board of Directors of the Company.

The operating revenues of the Company reached the amount of €315,6 million, higher by 16,0% (or €43,6 million) compared to the previous financial year, the main cause being the increase of the passenger traffic.

In total, Company’s participation in the Airport Development Fund (ADF) reached the amount of €66,8 million, higher by €11,3 million or 20,3% in comparison to the prior financial year, as a result of increased passenger traffic. In line with the previous year’s practice, part of the ADF receipts covered interest expenses, i.e. €36,0 million versus €39,8 million in the previous year, and therefore were recorded as subsidies related to financial expenses, while the remaining, €30,7 million covered part of the instalments of the loan received for the construction of the airport and it was transferred to other revenues, with the corresponding amount of the previous year standing at €15,7 million.

Cost savings efforts continued in 2014 resulting to a marginal increase of operating expenses of €3,1 million or 2,84%, which however has been well below the experienced traffic and revenue growth. The marginal increase of operating expenses is mainly due the reversal of provisions that had been made in the previous year.

Overall the earnings before interest, tax, depreciation & amortisation (EBITDA) were increased in the year 2014 by €40,5 million or 24,7% compared to the previous year, reaching the level of €204,1 million.

Depreciation charge was €71,7 million in 2014 marginally higher than the corresponding charge in 2013 of €71,2 million.

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The net financial expenses stood at €41,8 million, presenting an increase of €3,6 million or 9,3% versus 2013.

Profit before Tax reached the amount of €126,7 million. After accounting for the aggregate charge for income tax of €34,9 million, the statutory and other reserves of €4,6 million and the prior years’ retained earnings of €0,2 million, there remains a distributable profit of €87,4 million. The Board proposes to the shareholders a dividend distribution of €87,3 million, or €2,91 per ordinary share.

The Statement of Financial Position of 31 December 2014 reflects total Assets of €1,2 billion. The value of the Company’s Non-Current Assets (€0,9 billion) represents 75,0% of Total Assets, indicating that AIA still remains a capital intensive company.

All Fixed Assets are recorded in the Fixed Assets Register and are free of any encumbrances apart from the conditional assignment of the Usufruct extended since 1996 in favour of the Lenders. Fixed Assets were depreciated at rates reflecting their estimated useful lives and the legal limits on their use as provided by the ADA. The value of the Usufruct of the Land that was assigned by the Greek State for the development and operation of the Airport, the present value of the Grant of Rights Fee and the value of the Intangible Assets are equally depreciated over the operation of the 25-year concession period. Investment in Associates consists of €3,25 million and represents the carrying amount of the Company’s participation in the equity of Athens Airport Fuel Pipeline Company S.A.

The Airport Company’s Closing Cash position is €24,8 million, not including investments in held-to-maturity financial assets, which amounted to €250,7 million. The cash surplus is invested in short term time deposits and highly rated supranational and corporate euro-securities with maturity up to two years.

The Company is exposed to financial risks such as to price, credit, and liquidity and concentration risks. The nature of the risks as well as the scope and the policies of the Company for the management of the financial risks are presented in Section 3 of the Notes to the Financial Statements. Other risks and uncertainties related to tax disputes with the Greek State and municipal charges disputes with two of the surrounding municipalities are analytically referred to the note 5.28 of the Notes to the Financial Statements.

Regarding events after the balance sheet date reference is made in note 5.30 of the Financial Statements.

5. 2015 OutlookFollowing a year of spectacular levels of traffic recovery and successful financial results, the year ahead of us offers plenty of challenges: • Traffic levels continue to grow, powered by growing tourism demand and effective airline capacity

increases from the main home carriers but also from other airlines, indicating the strong dynamics of the Athens aviation market. It is probably one of the rare periods in the recent years that travel demand and airline supply are going hand-in-hand at a rational and healthy manner. As a result and taking into consideration the already announced for the Summer 2015 airline schedules, our initial projections for 2015 indicate further increase for air travel demand to/from Athens, however not at the rates of 2014.

• AIA continues to invest in projects that will enhance passenger experience and maintain Athens airport at cutting-edge technology. We are completing the major changes in the Extra-Schengen departures area, which will seriously improve the commercial potential. At the same time we are continuing to enhance the aesthetics of the departures area by concluding the façade cladding of the mezzanine area, in order to form a homogeneous and dynamic surface throughout MTB departures level. Our terminal upgrade plans for 2015 also include targeted aesthetic & architectural initiatives at the MTB arrivals level, aiming to enhance the passengers’ experience. In 2015 we commence the planning of the centralization of the Intra-Schengen passenger screening and the upgrade of the commercial environment and concept of this high passenger traffic area. Finally, numerous investments in the IT&T and technology areas will ensure operational excellence for AIA combining automation, passenger satisfaction, business efficiency and information security.

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• Greek aviation environment will likely change considerably upon the potential privatization of the Greek regional airports. The Company appreciates this, and the strategic implications that it brings along, together also with possible business opportunities.

• As we are currently experiencing a hiatus of the negotiations on the potential extension of the Company’s concession period, we continue to believe that a successful completion thereof can have significant benefits for all parties: the Company, which will gain valuable lifetime and be able to perform long term planning and development in accordance with the international experience of similar assets; the Greek State which will increase the value and potential attractiveness of its stake in the Company, will gain direct benefits from this transaction and transmit a signal to international investors; the airlines and consequently the travellers by a better alignment of the financial recovery of the airport assets’ costs in accordance with their useful life.

The results of 2014 were to a considerable degree attributable to the improvement of the image of Greece and Athens and to the stabilization of the Greek economy, which commenced within 2014. Any potential relapse to the adverse scenarios on the future of the Greek economy will negatively affect or reverse the potential that we see for 2015. Although the Company has to be prepared to meet all adversities, our work assumption is that in 2015 the country will head decisively towards the path of stabilization and recovery. Despite the loss in the country’s GDP of 26,0% since 2008, AIA has demonstrated increased resilience and recently, a strong recovery re-approaching business levels of the pre-crisis years, combining financial performance with operational excellence and quality of services. Despite all adversities, past and future, we shall continue our course, adjusting our strategies whenever necessary, in order to deliver financial and non-financial value to our shareholders and all other stakeholder parties.

Spata, 24 March 2015For the Board of Directors of Athens International Airport S.A.

Prof. Nickolaos TravlosChairman

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INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2014 15

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2014 16

STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2014 17

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2014 18

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2014 19

NOTES TO THE FINANCIAL STATEMENTS 20

1 Incorporation & activities of the Company 20

2 Significant accounting policies 20

3 Financial risk management 30

4 Critical accounting estimates and judgments 34

5 Notes to the financial statements 36

5.1 Revenues 36

5.2 Depreciation & amortisation charges 36

5.3 Net financial expenses 37

5.4 Subsidies received 37

5.5 Income tax expense 38

5.6 Basic earnings per share 38

5.7 Property plant & equipment-owned assets 39

5.8 Intangible assets 40

5.9 Held-to-maturity financial assets 41

5.10 Other non-current assets 41

5.11 Inventories 41

5.12 Construction works in progress 41

5.13 Trade receivables 42

5.14 Other receivables 42

5.15 Cash and cash equivalents 42

5.16 Share capital 43

5.17 Statutory & other reserves 43

5.18 Retained earnings 43

5.19 Bank loans 44

5.20 Employee retirement benefits 44

5.21 Provisions 46

5.22 Income & deferred tax liabilities 46

5.23 Other non-current liabilities 47

5.24 Trade & other payables 48

5.25 Other current liabilities 48

5.26 Operating lease arrangements 49

5.27 Commitments 49

5.28 Contingent liabilities 49

5.29 Related parties transactions 53

5.30 Events after the balance sheet date 55

Contents

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Note 2014 2013Operating revenues 5.1 284,283,328 255,881,287

Other revenues 5.1 31,319,450 16,154,316

Total operating revenues 315,602,778 272,035,603

Operating expenses

Personnel expenses 41,415,317 39,226,525

Outsourcing expenses 48,374,703 47,959,974

Public relations & marketing expenses 3,337,279 2,980,366

Utility expenses 8,052,901 9,272,302

Insurance premiums 2,416,736 2,750,047

Net provisions and impairment losses (222,863) (747,237)

Other operating expenses 8,143,191 6,991,356

Total operating expenses 111,517,264 108,433,334

EBITDA 204,085,514 163,602,269

Depreciation & amortisation charges 5.2 71,678,338 71,208,391

Operating profit 132,407,176 92,393,878

Financial Income 5.3 (640,009) (7,692,917)

Financial Costs 5.3 42,418,403 45,912,092

Net Financial Expenses 5.3 41,778,394 38,219,175

Subsidies received for borrowing costs 5.4 (36,050,996) (39,767,343)

Profit before tax 126,679,777 93,942,047

Income tax expense 5.5 (34,864,546) (34,943,856)

Profit after tax 91,815,231 58,998,191

Basic earnings per share 5.6 3.06 1.97

Income statement for the year ended 31 december 2014

The notes on pages 20 to 55 are an integral part of these financial statements.

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2014 2013Profit after tax 91,815,231 58,998,191

Other comprehensive income for the year, net of tax: (2,008,240) 11,801

Total comprehensive income for the year after tax 89,806,991 59,009,992

Statement of comprehensive income for the year ended 31 december 2014


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ASSETS Note 2014 2013Non-current assets

Property plant & equipment-owned assets 5.7 19,857,641 20,772,721

Intangible assets 5.8 785,767,233 850,963,090

Non-current held-to-maturity financial assets 5.9 96,690,621 94,206,077

Other non-current assets 5.10 3,438,104 3,424,929

Total non-current assets 905,753,599 969,366,816

Current assets

Inventories 5.11 5,696,348 5,676,303

Construction works in progress 5.12 1,924,748 1,159,634

Trade receivables 5.13 47,064,138 48,134,555

Current held-to-maturity financial assets 5.9 154,059,640 126,280,127

Other receivables 5.14 68,175,631 40,444,704

Cash & cash equivalents 5.15 24,799,911 35,002,755

Total current assets 301,720,416 256,698,078

TOTAL ASSETS 1,207,474,015 1,226,064,894

EQUITY & LIABILITIESEquity

Share capital 5.16 300,000,000 300,000,000

Statutory & other reserves 5.17 49,638,012 47,055,490

Retained earnings 5.18 87,390,491 65,266,022

Total equity 437,028,503 412,321,512

Non-current liabilities

Bank loans 5.19 438,626,204 503,900,970

Employee retirement benefits 5.20 8,258,359 5,738,189

Provisions 5.21 14,423,467 13,514,641

Deferred tax liabilities 5.22 48,862,805 45,376,830

Other non-current liabilities 5.23 113,362,146 108,773,257

Total non-current liabilities 623,532,981 677,303,887

Current liabilities

Bank loans 5.19 67,709,371 64,677,842

Trade & other payables 5.24 37,714,181 33,418,836

Income tax payable 5.22 30,672,973 25,344,324

Other current liabilities 5.25 10,816,006 12,998,493

Total current liabilities 146,912,531 136,439,495

Total liabilities 770,445,512 813,743,382

TOTAL EQUITY & LIABILITIES 1,207,474,015 1,226,064,894

Statement of financial position for the year ended 31 december 2014


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Share Reserves Retained TotalCapital Earnings Equity

Balance as at 31 December 2012 300,000,000 44,040,150 88,771,370 432,811,520

Comprehensive Income

Net profit for the year 2013 0 0 58,998,191 58,998,191

Other Comprehensive Income:

Actuarial gains 0 251,360 0 251,360

Deferred tax on actuarial gains for the year 2013 0 (65,355) 0 (65,355)

Deferred tax on actuarial gains/losses due to tax rate change 0 (174,204) 0 (174,204)

Total Comprehensive Income 0 11,801 58,998,191 59,009,992

Transactions with owners

Dividends distributed to the shareholders 0 0 (79,500,000) (79,500,000)

Total transactions with owners 0 0 (79,500,000) (79,500,000)

Transfer to statutory reserves 0 3,003,542 (3,003,542) 0


Comprehensive Income

Net profit for the year 2014 0 0 91,815,231 91,815,231

Other Comprehensive Income:

Actuarial losses 0 (2,713,838) 0 (2,713,838)

Deferred tax on actuarial losses for the year 2014 0 705,598 0 705,598

Total Comprehensive Income 0 (2,008,240) 91,815,231 89,806,991

Transactions with owners

Dividends distributed to shareholders 0 0 (65,100,000) (65,100,000)

Total transactions with owners 0 0 (65,100,000) (65,100,000)

Transfer to statutory and other reserves 0 4,590,762 (4,590,762) 0


Statement of changes in equity for the year ended 31 december 2014


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Statement of cash flows for the year ended 31 december 2014

Note 2014 2013Operating activities

Profit for the year before tax 126,679,777 93,942,047

Adjustments for:

Depreciation & amortisation expenses 5.2 71,678,338 71,208,391

Provision for impairment of trade receivables 5.13 (201,111) (877,910)

Net financial expenses 5.3 41,778,394 38,219,175

(Gain)/loss on PPE disposals 80,578 (34,891)

Increase/(decrease) in retirement benefits (193,668) (273,009)

Increase/(decrease) in provisions 200,745 (5,761,124)

Increase/(decrease) in other assets/liabilities (1,039,351) (1,060,350)

Increase/(decrease) in working capital (25,065,725) 36,744,314

Cash generated from operations 213,917,977 232,106,643

Income tax paid (24,616,031) (17,403,649)

Interest paid 5.3 (36,844,510) (38,919,008)

Net cash flow from operating activities 152,457,436 175,783,986

Investment activities

Acquisition of PPE (6,413,094) (5,259,277)

Interest received 5.3 553,653 7,534,285

Investments to held-to-maturity financial assets 5.9 (30,264,057) (19,391,597)

Dividends received from associate 39,209 157,280

Net cash flow from investment activities (36,084,289) (16,959,309)

Financial activities

Dividends paid 5.18 (65,100,000) (79,500,000)

Repayment of bank loans 5.19 (61,475,990) (57,859,530)

Net cash flow from financial activities (126,575,990) (137,359,530)

Net increase/(decrease) in cash & cash equivalents (10,202,844) 21,465,147

Cash & cash equivalents at the beginning of the year 35,002,755 13,537,608

Cash & cash equivalents at the end of the year 24,799,911 35,002,755


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1. Incorporation & activities of the CompanyAthens International Airport S.A. (the Company) is active in the financing, construction and operation of civil airports and related activities. As a civil airport operator the Company manages the Athens International Airport at Spata, Greece. The Company is a Societe Anonyme incorporated and domiciled in Greece. The address of its registered office is Spata, Attica 190 19.

The Company was established on 31 July 1995 by the Greek State & Private Investors for the purpose of the finance, construction, operation and development of the new international airport at Spata Attica. In exchange for the finance, construction, operation and development of the airport the Greek State granted the Athens International Airport S.A. a 30 year concession commencing on 11 June 1996. At the end of the concession arrangement (11 June 2026) the airport together with all usufruct additions will revert to the Greek State, which will enjoy all rights of ownership over these without payment of any kind and clear of any security, unless the concession arrangement is renewed.

The Company’s return from air activities is capped at 15% on the capital allocated to air activities. In the event that the Company’s actual compounded cumulative return exceeds 15%, in 3 out of any 4 consecutive financial periods, the Company is obliged to pay any excess return to the Greek State.

The terms and conditions of the concession for the Athens International Airport are stipulated in the Airport Development Agreement (“ADA”). The ADA and the Company’s Articles of Association were ratified and enacted under Law 2338/14.9.1995.

The Company commenced its commercial operations in March 2001 following a construction period of approximately 5 years initiated in September 1996.The number of open-ended staff employed at year-end was 623 employees, compared to 635 employees at the end of 2013. The financial statements have been approved by the Board of Directors on 24 March 2015.

2. Significant accounting policiesThe principal accounting policies applied in the preparation of these financial statements are set out below. These policies have consistently been applied to all the years presented.

2.1 Basis of preparationThe financial statements of the Company have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union, IFRIC Interpretations and the Companies Act 2190/1920 as applicable to companies reporting under IFRS. The Company’s financial statements have been prepared under the historical cost convention.

2.1.1 Going concernAs a result of the funding activities undertaken and the increased focus on working capital, the Company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Company should be able to operate within the level of its current financing. Currently net interest expenses are covered by operating profits more than 3 times.

After making enquiries, management has reasonable expectations that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

2.1.2 Changes in accounting policies and disclosuresStandards and Interpretations effective for the current financial year

IAS 32 (Amendment) “Financial Instruments: Presentation”This amendment to the application guidance in IAS 32 clarifies some of the requirements for offsetting financial assets and financial liabilities on the statement of financial position.

Notes to the financial statements

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IAS 36 (Amendment) “Recoverable amount disclosures for non-financial assets”This amendment requires: a) disclosure of the recoverable amount of an asset or cash generating unit (CGU) when an impairment loss has been recognised or reversed and b) detailed disclosure of how the fair value less costs of disposal has been measured when an impairment loss has been recognised or reversed. Also, it removes the requirement to disclose recoverable amount when a CGU contains goodwill or indefinite lived intangible assets but there has been no impairment.

IAS 39 (Amendment) “Financial Instruments: Recognition and Measurement”This amendment will allow hedge accounting to continue in a situation where a derivative, which has been designated as a hedging instrument, is novated to effect clearing with a central counterparty as a result of laws or regulations, if specific conditions are met.

Standards and Interpretations effective for subsequent periods

A number of new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 January 2014, and have not been applied in preparing these financial statements. The new standards that may have an effect are set out below. There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Company.

IFRS 9 “Financial Instruments” and subsequent amendments to IFRS 9 and IFRS 7 (effective for annual periods beginning on or after 1 January 2018)IFRS 9 replaces the guidance in IAS 39 which deals with the classification and measurement of financial assets and financial liabilities and it also includes an expected credit losses model that replaces the incurred loss impairment model used today. IFRS 9 Hedge Accounting establishes a more principles-based approach to hedge accounting and addresses inconsistencies and weaknesses in the current model in IAS 39. The Company is going to investigate the impact of IFRS 9 on its financial statements. The Company cannot currently early adopt IFRS 9 as it has not yet been endorsed by the EU.

IFRS 15 “Revenue from Contracts with Customers” (effective for annual periods beginning on or after 1 January 2017)IFRS 15 has been issued in May 2014. The objective of the standard is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. It contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The Company is going to investigate the impact of IFRS 15 on its financial statements. The standard has not yet been endorsed by the EU.

IFRIC 21 “Levies” (effective for annual periods beginning on or after 17 June 2014)This interpretation sets out the accounting for an obligation to pay a levy imposed by government that is not income tax. The interpretation clarifies that the obligating event that gives rise to a liability to pay a levy (one of the criteria for the recognition of a liability according to IAS 37) is the activity described in the relevant legislation that triggers the payment of the levy. The interpretation could result in recognition of a liability later than today, particularly in connection with levies that are triggered by circumstances on a specific date.

IAS 19R (Amendment) “Employee Benefits” (effective for annual periods beginning on or after 1 July 2014)These narrow scope amendments apply to contributions from employees or third parties to defined benefit plans and simplify the accounting for contributions that are independent of the number of years of employee service, for example, employee contributions that are calculated according to a fixed percentage of salary.

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IAS 1 (Amendments) “Disclosure initiative” (effective for annual periods beginning on or after 1 January 2016)These amendments clarify guidance in IAS 1 on materiality and aggregation, the presentation of subtotals, the structure of financial statements and the disclosure of accounting policies. The amendments have not yet been endorsed by the EU.

Annual improvements to IFRSs 2012, 2013 and 2014

The improvements that may have an effect on the consolidated financial statements of the Company are set out below.

IFRS 13 “Fair value measurement” (IFRS improvements 2012, effective for annual periods beginning on or after 1 February 2015)The amendment clarifies that the standard does not remove the ability to measure short-term receivables and payables at invoice amounts in cases where the impact of not discounting is immaterial.

IAS 24 “Related party disclosures” (IFRS improvements 2012, effective for annual periods beginning on or after 1 February 2015)The standard is amended to include, as a related party, an entity that provides key management personnel services to the reporting entity or to the parent of the reporting entity.

IFRS 13 “Fair value measurement” (IFRS improvements 2013, effective for annual periods beginning on or after 1 January 2015)The amendment clarifies that the portfolio exception in IFRS 13 applies to all contracts (including non-financial contracts) within the scope of IAS 39/IFRS 9.

IFRS 5 “Non-current assets held for sale and discontinued operations” (IFRS improvements 2014, effective for annual periods beginning on or after 1 January 2016)The amendment clarifies that, when an asset (or disposal group) is reclassified from ‘held for sale’ to ‘held for distribution’, or vice versa, this does not constitute a change to a plan of sale or distribution, and does not have to be accounted for as such.

IFRS 7 “Financial instruments: Disclosures” (IFRS improvements 2014, effective for annual periods beginning on or after 1 January 2016)The amendment adds specific guidance to help management determine whether the terms of an arrangement to service a financial asset which has been transferred constitute continuing involvement and clarifies that the additional disclosure required by the amendments to IFRS 7, ‘Disclosure – Offsetting financial assets and financial liabilities’ is not specifically required for all interim periods, unless required by IAS 34.

IAS 19 “Employee benefits” (IFRS improvements 2014, effective for annual periods beginning on or after 1 January 2016)The amendment clarifies that, when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important, and not the country where they arise.

2.2 Foreign currency translation

2.2.1 Functional and presentation currencyItems included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (‘the functional currency’). The Company’s financial statements are presented in EURO (€), which is the Company’s functional and presentation currency.

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2.2.2 Transactions and balancesForeign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resultingfrom the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

2.3 Property, plant and equipmentProperty, plant and equipment mainly comprise movable assets, such as vehicles and furniture & fixtures which do not form part of the service concession intangible asset.

The items included under the heading “Property, plant & equipment” in the accompanying statement of financial position are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Depreciation is calculated using the straight-line method to allocate the cost of the various categories of property, plant and equipment to their residual values over their estimated useful lives, as follows:

Mechanical Equipment 10 years Vehicles 6-10 yearsFixtures & Equipment 10 years Hardware 5 years

Land, buildings, installations, fencing, aircraft ground power system, runways, taxiways, aircraft bridges and aprons held under the Service Concession Arrangement constitutes the total infrastructure that has been recognised as an intangible asset (refer to accounting policy 2.4).

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within other (losses)/gains – net, in the income statement.

2.4 Intangible assets

2.4.1 Service concession arrangementThe Service Concession Arrangement is the right that has been granted by the Greek State to the Company for the purpose of the finance, construction, operation and development of the Athens International Airport. The above right has a finite useful life of approximately 25 years which is equal to the duration of the concession arrangement following the completion of the construction phase.

The Service Concession Arrangement has been accounted under the intangible asset model since the Company, as operator, is paid by the users and the concession grantor has not provided any contractual guarantees with respect to the recoverability of the investment. The intangible asset corresponds to the right granted by the concession grantor to the Company to charge users of the airport services.

The Service Concession Arrangement consists of the fair value of acquiring the service concession which principally includes the cost of the usufruct and the costs incurred to construct the infrastructure (net of government grants received) as well as the present value of future obligations for the grant of rights fee payable to the Greek Government as set out in the Service Concession Arrangement.

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Amortisation is calculated using the straight-line method to allocate the cost of the right over the duration of the Service Concession Arrangement which is approximately 25 years.

Any subsequent costs incurred in maintaining the serviceability of the infrastructure is expensed as incurred unless such cost relate to major upgrades which increase the income generating ability of the infrastructure. These costs are capitalised as part of the service concession intangible asset and are amortised on a straight-line basis over the remaining period of the Service Concession Arrangement.

2.4.2 Computer softwareAcquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. These costs are depreciated over their estimated useful lives (5 years).Costs associated with developing or maintaining computer software programmes are recognised as an expense as incurred. Costs that are directly associated with the development of identifiable and unique software products controlled by the Company, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as intangible assets. Costs include the employee costs incurred as a result of developing software and an appropriate portion of relevant overheads.Computer software development costs that recognised as assets are depreciated over their estimated useful lives (5 years).

2.5 Impairment of non-financial assetsAssets, such as the service concession intangible asset, that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. If the recoverable amount is lower than the carrying amount, the difference is recognised as an impairment loss in the income statement and the carrying amount of the asset is reduced by the same amount. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

2.6 Financial assets

2.6.1 ClassificationThe Company classifies its financial assets depending on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

The Company has two classes of financial assets comprising held-to-maturity investments and loans and receivables. It does not hold any financial assets at fair value through profit and loss nor any available for sale financial assets.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the end of the reporting date, which are classified as non-current assets. The Company’s loans and receivables recognised in the statement of financial position comprise “Trade and other receivables” and “Cash and cash equivalents”. Refer to notes 2.8 and 2.9 respectively.

Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed maturities that company’s management has the positive intention and ability to hold to maturity, other than:

• those that the Company upon initial recognition designates at fair value through profit or loss• those that the Company designates as available for sale• those that meet the definition of loans and receivables

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2.6.2 Recognition and measurementRegular-way purchases and sales of financial assets are recognised on trade date – the date on which the Company commits to purchase or sell the asset.

Loans and receivables are initially recognised at fair value and are subsequently measured at amortised cost using the effective interest rate method.

Held-to-maturity financial assets are initially recognised at amortised cost and are subsequently measured at amortised cost using the effective interest rate method.

Financial assets are derecognised only when the contractual rights to the cash flows from the financial asset expire or the Company transfers substantially all risks and rewards of ownership.

2.6.3 ImpairmentThe Company assesses at each end of the reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that have occurred after the initial recognition of the asset (a probable ‘loss event’) and that probable loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. Objective evidence that a financial asset or group of assets is impaired includes observable data that comes to the attention of the Company about the following events:

• Significant financial difficulty of the issuer or debtor;• A breach of contract, such as a default or delinquency in payments;• It is becoming probable that the issuer or debtor will enter bankruptcy or other financial reorganisation;• The disappearance of an active market for that financial asset because of financial difficulties; or• Observable data indicating that there is a measurable decrease in the estimated future cash flow from a

group of financial assets since the initial recognition of those assets, including:• adverse changes in the payment status of issuers or debtors; or• national or local economic conditions that correlate with defaults on the assets.

If there is objective evidence that an impairment loss has been incurred on trade receivables or held-to-maturity investments carried at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the income statement under provision for impairment.

If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as improved credit rating), the previously recognised impairment loss is reversed by adjusting the allowance account. The amount of the reversal is recognised in the income statement.

2.7 InventoriesInventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average method. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.

2.8 Trade receivablesTrade receivables are amounts due from customers for aeronautical and other services performed in the ordinary course of business. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets.

2.9 Cash and cash equivalentsCash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.

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2.10 Share capitalOrdinary shares are classified as equity. Incremental costs associated directly with the issue of new ordinary shares are shown in equity as a reduction, net of tax, from the proceeds.

2.11 Trade payablesTrade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

2.12 BorrowingsBorrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings using the effective interest method.

Borrowing costs are capitalised if they are directly attributable to the acquisition or construction of a qualifying asset.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

2.13 Government grantsGrants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions.

Government grants relating to borrowing and other related costs are recognised in the income statement to match them with the costs that they are intended to compensate.

Government grants relating to non-current assets are off-set against the cost of the relevant non-current asset. The grant is recognised as income over the life of the respective depreciable non-current asset by way of a reduction in the depreciation/amortisation charge.

2.14 Current and deferred income taxThe tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case the tax is also recognised in other comprehensive income or directly in equity, respectively.

The current income tax charge is calculated on the basis of Greek tax laws enacted or substantively enacted at the balance sheet date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations is subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the Company’s financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit and loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and

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liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

2.15 Employee benefits

2.15.1 Pension obligationsThe Company has both defined benefit and defined contribution plans. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. The Company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. A defined benefit plan is a pension plan that typically defines an amount of pension benefits that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

The Company’s obligations to pay employee retirement benefits under Law 2112/1920 are considered and accounted for as defined benefit plans.

The liability recognised in the statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating to the terms of the related pension liability.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise.

Past-service costs are recognised immediately in income statement.

For defined contribution plans, the Company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Company has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

2.15.2 Termination benefitsTermination benefits are payable when employment is terminated by the Company before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Company recognises termination benefits when it is demonstrably committed to either: terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the balance sheet date are discounted to present value.

2.15.3 Bonus plansThe Company recognises a liability and an expense for bonuses based on achievement of predefined financial and operational targets. The Company recognises a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

2.16 ProvisionsProvisions are recognised when: the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions include the obligations under the Service Concession Arrangement to maintain the serviceability of major infrastructure components, such as runways, taxiways, aprons, etc. which require major overhauls at regular intervals during the concession period. Provisions are not recognised for future operating losses.

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Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

2.17 Revenue recognitionRevenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Company’s activities. Revenue is shown net of value-added tax, returns, rebates and discounts.

The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Company’s activities as described below. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The Company bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

2.17.1 Sales of servicesRevenue from the sale of services is derived from “air activities” and “non-air activities”.

“Air Activities” mean the provision of facilities, services and equipment for the purpose of landing, parking and servicing of aircrafts; the handling of passengers, baggage, cargo or mail on airport premises; and the transfer of passengers, baggage, cargo or mail to and from aircrafts and trains.

“Non-Air Activities” mean the provision, operation, maintenance, repair, renewal staffing and supervision of the following services, facilities and equipment: car parking, general retail shops, restaurants, bars and other refreshment facilities, vehicle rental, porter service, hotels etc.

Airport charges Revenues related to airport charges are recognised in the income statement when the services are rendered. The criteria for the recognition of income related to airport charges is the aircraft’s take off. Each arrival of an aircraft and its subsequent departure is considered as a cycle of movement/flight where all necessary services have been rendered.

Article 14 of Law 2338/1995, the “Airport Development Agreement”, sets the rules for defining the charges levied to the users of the airport with respect of the facilities and services provided at the airport. According to the aforementioned article, the Company is entitled to determine at its discretion the level of airport charges in order to achieve a maximum return of 15% per annum on the capital allocated to air activities.

Concession agreementsThe Company’s business area has at the balance sheet date, a total of 60 concession contracts, concerning the performance of various commercial activities at the airport.

A concession involves granting of rights to a concession holder to operate and manage a commercial activity in a specific location designated by the Company. The concession rights are calculated according to an agreed scale as a percentage of the sales generated by the concession holder subject to an annual minimum guaranteed fee. A separate part of the concession contract is entered into for the space required for warehouses, for which a fixed rent is payable.

Concession revenues are recognised in the income statement on a monthly basis, while the settlement of the annual concession fees is finally recognised by the Company in the income statement, at year-end.

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2.17.2 Building space rentals and servicesThe Company rents properties held under the concession and located within the airport premises under operating leases. Revenue from such leases is recognised in the income statement on a straight line basis over the lease term.

2.17.3 Parking feesRevenues related to parking services to vehicles used by passengers and visitors to reach airport are recognized in the income statement when the service is concluded. The criterion for the recognition of revenue related to parking charges is the vehicle’s departure. Each arrival of a vehicle and its subsequent departure is considered as a cycle of movement where all services have been rendered.

2.17.4 Interest incomeInterest income is recognised on a time-proportion basis using the effective interest method. When a receivable is impaired, the Company reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans and receivables is recognised using the original effective interest rate.

2.17.5 Dividend incomeDividend income is recognised when the right to receive payment is established.

2.18 Offsetting financial instrumentsFinancial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the company or the counterparty.

2.19 LeasesLeases under which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made by the Company under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.

The Company does not lease any material property, plant or equipment under finance leases under which it substantially retains all the risks and rewards of ownership.

2.20 Dividend distributionDividend distribution to the Company’s shareholders is recognised as a liability in the Company’s financial statements in the period in which the dividends are approved by the Company’s shareholders.

2.21 Fair value estimation and hierarchyCompany uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

• Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities. • Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value

are observable, either directly or indirectly.• Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are

not based on observable market data.

The carrying value of receivables and payables are assumed to approximate their fair values at the balance sheet date. The fair value of financial assets held to maturity is assessed using quoted prices in active market (Level 1). The fair value of loans is estimated by the method of discounting the future contractual cash flows at the current market interest rate interest rate swaps for the average duration of

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the loan which corresponds to the average duration of the relevant debt obligation (Level 2). During the year there were no transfers between Level 1 and Level 2 and no transfers into and out of Level 3 for the measurement of fair value. The Company has no financial assets or liabilities measured at fair value at the balance sheet date.

2.22 AssociatesAssociates are all entities over which the Company has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are initially recognised at cost and subsequently at cost less any impairment losses. Dividend income is recognised when the right to such income is established.

The Company’s investment in its associate amounts to €3,25m as of 31 December 2014 represents less than 1% of total assets at that date. This investment has not been accounted for under the equity method of accounting on the basis that it is not considered to be material to the Company’s operations and the departure from IAS 28 is unlikely to influence the economic decision of the users of these financial statements.

3 Financial risk management

3.1 Financial risk factorsThe Company is exposed to financial risk, such as market risk (fluctuations in exchange rates, interest rates and price risk), credit risk and liquidity risk. The general risk management program of the Company focuses on the unpredictability of the financial markets, and attempts to minimize their potential negative influence on the financial performance of the Company.

The financial risk management of the Company is performed internally by a qualified unit, which operates under specific rules that have been approved by the Board of Directors.

Specifically it should be noted that, the results of 2014 were to a considerable degree attributable to the improvement of the image of Greece and Athens and to the stabilization of the Greek economy, which commenced within 2014. Any possible relapse to the adverse scenarios on the future of the Greek economy will negatively affect or reverse the potential that is expected for 2015. Although the Company has to be prepared to meet all adversities, Management current main line of thinking is that in 2015 the country will head decisively towards the path of stabilization and recovery. Historically, AIA has demonstrated increased resilience in the years of macroeconomic instability, combining financial performance with operational excellence and quality of services and therefore Management does not expect that the operations and financial position of the Company will be significantly affected in the foreseeable future. Despite all adversities, past and future, Management has and will continue to assess the situation and its possible impact, adjusting its operating strategy whenever necessary, in order to deliver financial and non-financial value to shareholders and other stakeholder parties.

3.1.1 Exchange rate riskExchange rate risk occurs if future business transactions, recognized assets and liabilities and net investments in activities outside the euro zone are expressed in a currency other than the functional currency of the Company (euro).

The Company’s exposure to foreign exchange risk is very limited since its business is substantially transacted in its functional currency.

3.1.2 Cash flow and fair value interest rate riskThe cash flow interest rate risk is the risk of fluctuations in the future cash flows of a financial instrument as a result of fluctuations in the market interest rate.

The Company has interest-bearing assets in the form of cash and cash equivalent (short term time deposits and other highly liquid investments), thus profits and cash flows from investment activities are dependent in market interest rates. During 2014 the Company’s cash and cash equivalent (short term time deposits and other liquid investments) earned an effective interest rate (referring to yield from time deposits and current accounts) amounting to 0,33% (2013: 0,40%). The impact from

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possible future interest rates on the Company’s financial performance, regarding cash and cash equivalents, is presented below:

The Company is also exposed to interest rate risk arising from its long-term borrowings. Borrowings issued at variable interest rates expose the Company to cash flow interest rate risk while borrowings issued at fixed interest rates expose the Company to fair value interest rate risk.

The Company’s borrowings are borrowings with fixed interest rates. Hence the financial performance cannot be affected by fluctuations in interest rates with respect to such loans. The fair value interest rate risk of such loans is presented in note 5.19 “Bank loans”.

The fair value interest rate risk is the risk of fluctuations in the value of a financial instrument as a result of fluctuations in the market interest rate. The Company is exposed to fair value interest rate risk as a result of discounting liabilities and receivables of long term settlement. Such liabilities and receivables are discounted using the prevailing pre-tax risk free rate which is affected by interest rates fluctuations. The impact from possible future interest rates on the Company’s financial performance from liabilities of long term settlement is presented below:

3.1.3 Price riskPrice risk is the risk of fluctuations in the value of assets and liabilities as a result of changes in market prices. The Company’s exposure to equity securities price risk is limited to the investment in an unlisted entity which represents less than 1% of total asset. The Company is not exposed to commodity price risk.

3.1.4 Credit riskCredit risk arises from cash and cash equivalents held with banks, short term and long term held-to- maturity financial assets and credit exposures from customers.

Cash and cash equivalents – Held-to-maturity financial assets

For banks and financial institutions, only independently rated parties with minimum ratings described below, as set out under the Master Facility Agreement between the Company and the European Investment Bank, are acceptable. The Company could cooperate with banks or financial institutions or proceed with the purchase of financial assets that satisfy the following criteria:• Long term unsecured and unguaranteed debt should be rated at:

a. A3 or higher by Moody’s; orb. A- or higher by S&P; orc. A- or higher by Fitch

• The maturity date of an investment should not exceed the period of 2 years from the investment date• Operates a branch in Greece or such other places as may be agreed between the Company and EIB; and• Is acceptable by EIB

All cooperation banks are acceptable by EIB.

The analysis of held-to-maturity financial assets and bank deposits’ balances based on credit ratings is presented in the following table:

2014 2013

Interest rates fluctuation +1,00% -0.33% +1,00% -0.40%

Impact on interest receipts 251,444 (84,050) 354,889 (141,956)

2014 2013

Interest rates fluctuation +1% -1% +1% -1%

Grant of rights fee payable 279,523 (302,387) 196,725 (227,945)

Provision for major restoration expenses 272,788 (270,031) 134,945 (134,927)

Total impact on interest expenses 552,311 (572,418) 331,670 (362,872)

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2014 2013

Aaa-A3 Caa1-C Aaa-A3 Caa1-C

Held-to-maturity financial assets 250,750,261 0 220,486,204 0

Bank deposits’ balances 18,854,100 5,942,704 28,493,468 6,505,982

Total 269,604,361 5,942,704 248,979,672 6,505,982

Trade receivables

Regarding credit exposure from customers, the Company has an established credit policy and procedures in place aiming to minimise collection losses. Credit control assesses the credit quality of the customers, taking into account independent credit ratings where available, their financial position, past experience in payments and other relevant factors. Cash and other collateral are obtained from customers when considered necessary under the circumstances.

Trade and other receivables are analysed as follows in terms of credit risk:

Any past due account that is fully covered by guarantees or collaterals given is not tested for impairment.

The aging analysis of the past due, but not impaired amount is presented in the following table:

Credit quality of financial assets

The credit quality of the financial assets is quite satisfactory, taking into account the allowance for doubtful debt. The Company has established a credit policy which requires the customers to extend securities for the use of airport’s services and facilities. The securities held by the Company are in the form of cash deposits and bank letter of guarantee. The fair value of the collaterals held by the Company as at 31 December 2014 is analysed as follows:

The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to information about counterparty secured amounts:

Trade and other receivables subject to impairment testing 2014 2013Fully performed 22,703,222 26,097,360

Past due but not impaired 29,301,115 24,846,939

Impaired 14,942,290 17,670,044

Total trade and other receivables subject to impairment testing 66,946,627 68,614,343

Aging analysis of past due but not impaired receivables 2014 20131-30 days 14,008,537 9,567,602

31-60 days 5,337,647 5,388,830

Over 60 days 9,954,932 9,890,507

Total of past due but not impaired receivables 29,301,115 24,846,939

Fair value of collaterals held 2014 2013Letter of guarantees 52,232,051 49,712,569

Cash deposits 24,790,350 21,998,489

Total fair value of collaterals held 77,022,401 71,711,058

2014 2013Group 1 – Fully secured 10,158,520 20,596,002

Group 2 – Partially secured 12,161,873 4,763,551

Group 3 – Not secured 382,829 737,808

Total 22,703,222 26,097,360

The collaterals above have been received against the outstanding balance of all trade receivable accounts.

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Provision for impairment

As of 31 December 2014, trade receivables of €44,243,405 (2013: €42,516,983) were partially or fully tested for impairment and adequately provided for their unsecured amount. The amount of provision stood at €5.244.111 as of 31 December 2014. The individually impaired receivables mainly relate to customers, who are in unexpectedly difficult economic situations. It was assessed that a portion of the receivables is expected to be recovered.

Movements on the provision for impairment of trade receivables are as follows:

The creation and release of provision for impaired receivables have been included in “Net provisions and impairment loses” in the income statement. The other classes within trade receivables do not contain impaired assets. The maximum exposure to credit risk at the reporting date is the value of total provision for impairment of trade receivables.

3.1.5 Concentration of credit riskThe Company is exposed to concentration risk attributed to the concentration of the trade receivables and cash balances and held-to-maturity financial assets.

The Company has a high concentration of credit risk with respect to 1 domestic carrier (2013: 2 domestic carriers) which represents higher than 10% of its revenues.

For bank balances and deposits, there is a significant concentration of credit risk with respect to 2 banks (2013: 2 banks), which hold more than 10% of the Company’s cash balances and deposits. However, no financial loss is expected based on what has been referred above in note 3.1.4 for cash balances and held-to-maturity financial assets.

3.1.6 Liquidity riskLiquidity risk is the risk that the entity will have difficulty in raising the financial resources required to fulfil its commitments. Liquidity risk is held at low levels through effective cash flow management and availability of adequate cash. Cash flow forecasting is performed internally by rolling forecasts of the Company’s liquidity requirements to ensure that is has sufficient cash to meet operational needs, to fund scheduled investments and debt and to comply with loan covenants.

The table below analyses the financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Undiscounted cash flows in respect of balances due within 12 months generally equal their carrying amounts in the balance sheet, as the impact of discounting is not significant.

2014 2013At 1 January 5,445,222 6,323,132

Addition (Release) of provision for receivables impairment (201,111) (877,910)

At 31 December 5,244,111 5,445,222

At 31 December 2014 Less than1 year

Between 1 & 2 years

Between 2 & 5 years

Over 5 years

Borrowings 95,284,479 95,163,997 285,420,108 142,663,610

Grant of rights fee payable 1,000,000 8,622,222 45,000,000 96,833,333

Trade and other payables 35,073,525 0 0 0

Total 131,358,004 103,786,219 330,420,108 239,496,943

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3.2 Capital risk managementThe Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, use excess cash to repay its borrowings (subject to the termination provisions of the respective loan agreements) or sell assets not pledged as security, to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including “Current and non-current borrowings” as shown in the statement of financial position) less cash and cash equivalents and current held-to-maturity financial assets. Total capital is calculated as ‘equity’ as shown in the statement of financial position plus net debt.

The gearing ratios at 31 December 2014 and 2013 were as follows:

4 Critical accounting estimates and judgments

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

4.1 Critical accounting estimates and assumptionsThe Company makes estimates and assumptions concerning the future. The resulting accounting estimates will by definition, seldom equal the related actual results. The accounting estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next year are disclosed bellow:

4.1.1 TaxesThe internal control procedures for the related tax risks are part of Company’s control system. The general tax risk for the Company concerns the timely submission of complete tax returns, the payment of the tax amounts concerned as well as compliance with all tax laws and regulations and reporting rules specifically relating to corporate income tax.

The Company is subject to income tax, VAT and other taxes in Greece. Significant judgment is sometimes required in determining the Company’s tax position for such taxes in certain instances due to the particular tax regime, under the Airport Development Agreement, applicable to the Company’s operations, which is subject to challenge by the tax authorities on the grounds

At 31 December 2013 Less than1 year

Between 1 & 2 years

Between 2 & 5 years

Over 5 years

Borrowings 95,487,319 95,284,479 285,435,113 237,812,602

Grant of rights fee payable 1,000,000 1,000,000 38,622,222 111,833,333

Trade and other payables 28,145,994 0 0 0

Total 124,633,313 96,284,479 324,057,335 349,645,935

Gearing ratio 2014 2013Total borrowings 503,900,970 565,376,960

Less: Cash & cash equivalent and current held-to-maturity financial assets (178,859,551) (161,282,882)

Net debt 325,041,419 404,094,078

Total capital – (equity plus net debt) 762,069,922 816,415,589

Gearing ratio 43% 49%

Current held-to-maturity financial assets are also included in the above calculation, as they are an integral part of the Company’s overall cash management strategy.

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of ambiguity or different interpretation with tax laws. The Company recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will arise or tax losses reduced. Where that final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current tax, deferred tax and other tax assets and liabilities in the period during which such determination is made.

4.1.2 Provision for restoration costProvision for restoration cost includes future expenses for the major overhauls of roads, runways, taxiways and replacement of airfield lighting and baggage handling equipment. Significant estimates are required to determine the level of provision such as the timing of the expenditure, the extension of the works and the amount that it will be expensed in the future. The nominal value of the provision for restoration cost is annually determined by a qualified department within the Company based on international experience and the specific conditions relating to the operations of the airport. The amount of the provision is discounted at balance sheet date by using the risk free rate for similar time duration.

4.2 Critical judgments in applying the entity’s accounting policiesThere were no critical judgments necessary in applying the Company’s accounting policies.

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5. Notes to the financial statements

5.1 Revenues

Operating revenues were measured at the fair value of the consideration received or receivable, taking into account the amount of any trade discounts or tax-volume rebates.

The fair value of the consideration received or receivable is equal to the invoiced amount, since the Company doesn’t formally provide any deferred credit terms to its customers, in the form of interest-free instalments or at below market interest rates.

The Company, in cases where it is likely, based on estimations, that the economic benefits related to a transaction are not expected to flow to the entity, does not recognise the revenue of the specific transaction.

As at the balance sheet date, the Company has contracted with tenants for the following minimum non-cancellable operating lease payments:

Concession fees earned for the year ended 31 December 2014 include turnover linked fees in excess of base concession fees amounting to €4.124.074 (2013: €1.581.134).

5.2 Depreciation & amortisation charges

During 2014, the Company proceeded with the re-estimation of vehicles useful lives to 6-10 years. The re-estimation of the useful lives had a negative effect on Company’s Income Statement amounting to €0,05m.

Refer to notes 5.7-5.8 for further information.

Analysis of revenues 2014 2013Air activities

Airport charges 147,707,718 124,267,814

Centralized infrastructure & handling related revenues 36,014,780 30,646,103

Building and ground rentals & concessions 26,525,639 26,097,716

Other 34,654,828 19,108,500

Total air activity revenues 244,902,966 200,120,133

Non-air activities

Concession activities 42,637,665 40,160,909

Parking services 12,750,483 12,651,866

Building and ground rentals & concessions 11,326,400 15,132,240

Other 3,985,263 3,970,454

Total non-air activity revenues 70,699,812 71,915,469

Total revenues 315,602,778 272,035,603

Analysis of minimum lease payments 2014 2013Within one year 12,508,665 18,236,836

Between one and five years 37,901,726 38,337,284

More than five years 52,135,070 62,008,153

Total minimum lease payments 102,545,461 118,582,273

Analysis of depreciation & amortisation charges 2014 2013Depreciation of owned assets 2,982,269 2,710,601

Amortisation of intangible assets 83,772,846 83,574,566

Amortisation of cohesion fund related to intangible assets (15,076,777) (15,076,777)

Total depreciation & amortisation expenses 71,678,338 71,208,391

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5.3 Net financial expenses

Interest and related expenses amounting to €36.844.510 (2013: €38.919.008) were paid during the year ended 31 December 2014.

The weighted average interest rate earned by the Company on its cash surplus (investments in time deposits and financial assets) for 2014 was 0,19% (2013: 0,16%). The average maturity of the Company’s investments (time deposits and held-to-maturity financial assets) for 2014 was 397 days (2013: 362 days).

Interest income amounting to €553.653 (2013: €7.534.285) was received during the year ended 31 December 2014.

5.4 Subsidies received

Airport Development Fund (ADF)

In accordance with Law 2065/1992, as amended with Law 2892/2001, the Greek State imposed a levy on all passengers older than 5 years old, departing from Greek Airports, for the purpose of ensuring that passengers share the responsibility for funding the commercial aviation infrastructure within the Hellenic Republic.

A passenger fee is collected by the airlines and consequently refunded to the Hellenic Civil Aviation Authority on a monthly basis, through bank accounts opened with the Bank of Greece for each airport, in favour of the latter.

According to article 26.1 of Law 2338/1995, the “Airport Development Agreement”, the Greek State undertook the responsibility to collect the passenger fee over the period from 1 November 1994 to at least 1 November 2014. The Greek State also committed that article 40 of Law 2065/1992 “will not be amended or modified in any respect which materially prejudices the financial return of the Airport Company”.

Based on the provisions of article 26.2 of Law 2338/1995, in conjunction with article 16 of Law 2892/2001, the Airport Company, at all times prior to airport opening and at all times after the airport opening, is entitled to make withdrawals from the Spata Airport Development Fund, in order to fund borrowing costs and capital repayments incurred in respect to loans received for funding infrastructure development.

For the year ended 31 December 2014 the Company was entitled to subsidies under the ADF amounting to €66.753.890 (2013: €55.467.629) as analysed below:

Any subsidies receivable in excess of qualifying interest and related expenses for the year are shown as other revenues in line with the accounting policy 2.13.

Analysis of net financial expenses 2014 2013Financial expenses

Interest expenses and related costs on bank loans 36,196,237 39,892,945

Unwinding of discount for long term liabilities 6,126,808 5,930,683

Other financial expenses 95,359 88,464

Financial expenses 42,418,403 45,912,092

Financial revenues

Interest income (640,009) (7,692,917)

Financial revenues (640,009) (7,692,917)

Net financial expenses 41,778,394 38,219,175

2014 2013Receivables meeting interest and related expenses 36,050,996 39,767,343

Excess over borrowing cost 30,702,894 15,700,285

Total subsidies receivable 66,753,890 55,467,629

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5.5 Income tax expenseDomestic income tax is calculated at 26% (2013: 26%) on taxable income or, in circumstance where the Company has tax losses carried forward, on gross dividends declared for distribution. (For further information refer to note 5.22).

The total income taxes charged to the income statement are analysed as follows:

The following is the reconciliation between income taxes as presented in the income statement, with those resulting from the application of the enacted tax rates:

Refer to notes 5.22 and 5.28 for further analysis of income and deferred taxes.

5.6 Basic earnings per shareBasic earnings per share are calculated by dividing the Company’s net profits after taxes by the weighted average number of shares during the year as follows:

There were no new shares issued or existing shares repurchased during the year. The average number of shares remained unchanged. The Company does not have any potential dilutive instruments.

Reconciliation of effective income tax rate Rate 2014 Rate 2013Profit before tax for the year 126,679,777 93,942,047

Income tax 26.00% (32,936,742) 26.00% (24,424,932)

Expenses not deductible for tax purposes 1.53% (1,937,998) 1.46% (1,367,095)

Revenues relieved from income tax (0.01)% 10,194 (0.04)% 40,892

Effect of change in tax rates 0.00% 0 9.79% (9,192,721)

Total income tax expense for the year 27.52% (34,864,546) 37.20% (34,943,856)

2014 2013Income tax on dividends (30,672,973) (22,872,973)

Deferred income tax (4,191,573) (12,070,883)

Total income tax expense for the year (34,864,546) (34,943,856)

Analysis of earnings per share 2014 2013Profit of the year attributable to shareholders 91,815,231 58,998,191

Average No of shares during the year 30,000,000 30,000,000

Earnings per share for the year 3.06 1.97

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5.7 Property plant & equipment-owned assets

Property plant & equipment-owned assets

Acquisition costLand &

buildingsPlant &

equipment VehiclesFurniture& fittings

Cohesionfund Total

Balance as at 1 January 2013 40,000 20,614,267 35,708,288 74,662,454 (17,437,643) 113,587,363Acquisitions 0 23,297 74,933 392,664 0 490,894Disposals 0 0 (257,130) (146,550) 0 (403,680)Transfers 0 0 490,661 1,278,369 0 1,769,030Reclassifications 0 0 0 0 0 0Balance as at 31 December 2013 40,000 20,637,564 36,016,752 76,186,937 (17,437,643) 115,443,607

Balance as at 1 January 2014 40,000 20,637,564 36,016,752 76,186,937 (17,437,643) 115,443,607Acquisitions 0 11,659 157,716 481,783 0 651,158Disposals 0 0 (521,986) (321,261) 0 (843,247)Transfers 0 0 162,139 1,604,015 0 1,766,154Reclassifications 0 0 0 0 0 0Balance as at 31 December 2014 40,000 20,649,223 35,814,621 77,951,474 (17,437,643) 117,017,672

Depreciation of owned property plant & equipment

DepreciationLand &

buildingsPlant &


Cohesionfund Total

Balance as at 1 January 2013 0 3,511,889 34,148,741 72,140,851 (17,437,644) 92,363,838Depreciation charge for the year 0 1,301,561 480,736 928,304 0 2,710,601Disposals 0 0 (257,130) (146,423) 0 (403,553)Transfers 0 0 0 0 0 0Reclassifications 0 0 0 0 0 0Balance as at 31 December 2013 0 4,813,450 34,372,347 72,922,732 (17,437,644) 94,670,886

Balance as at 1 January 2014 0 4,813,450 34,372,347 72,922,732 (17,437,644) 94,670,886Depreciation charge for the year 0 1,278,930 468,785 1,234,554 0 2,982,269Disposals 0 0 (174,310) (318,815) 0 (493,125)Transfers 0 0 0 0 0 0Reclassifications 0 0 0 0 0 0Balance as at 31 December 2014 0 6,092,380 34,666,822 73,838,471 (17,437,644) 97,160,031

Carrying amount of owned property plant & equipment

Carrying AmountLand &

buildingsPlant &


Cohesionfund Total

As at 1 January 2013 40,000 17,102,377 1,559,546 2,521,602 1 21,223,525As at 31 December 2013 40,000 15,824,113 1,644,404 3,264,204 1 20,772,721

As at 1 January 2014 40,000 15,824,113 1,644,404 3,264,204 1 20,772,721As at 31 December 2014 40,000 14,556,842 1,147,798 4,113,002 1 19,857,641

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Intangible assets

Acquisition costConcession

assets Cohesion fundSoftware &

other Total

Balance as at 1 January 2013 2,067,544,155 (380,686,471) 14,888,954 1,701,746,640Acquisitions 269,251 0 72,348 341,599Disposals 0 0 0 0Transfers 2,308,892 0 640,377 2,949,269Reclassifications 0 0 0 0Balance as at 31 December 2013 2,070,122,298 (380,686,471) 15,601,679 1,705,037,508

Balance as at 1 January 2014 2,070,122,298 (380,686,471) 15,601,679 1,705,037,508Acquisitions 168,613 0 82,831 251,444Disposals (95,211) 0 0 (95,211)Transfers 2,546,846 0 744,353 3,291,199Reclassifications 0 0 0 0Balance as at 31 December 2014 2,072,742,546 (380,686,471) 16,428,863 1,708,484,938

Depreciation of intangible assets

DepreciationConcession


other Total

Balance as at 1 January 2013 948,936,752 (177,149,928) 13,789,801 785,576,625Depreciation charge for the year 83,044,921 (15,076,777) 529,645 68,497,789Impairment losses 0 0 0 0Disposals 0 0 0 0Transfers 0 0 0 0Reclassifications 0 0 0 0Balance as at 31 December 2013 1,031,981,673 (192,226,705) 14,319,446 854,074,414

Balance as at 1 January 2014 1,031,981,673 (192,226,705) 14,319,446 854,074,414Depreciation charge for the year 83,173,917 (15,076,777) 598,930 68,696,070Impairment losses 0 0 0 0Disposals (52,779) 0 0 (52,779)Transfers 0 0 0 0Reclassifications 0 0 0 0Balance as at 31 December 2014 1,115,102,811 (207,303,482) 14,918,376 922,717,705

Carrying amounts of intangible assets

Carrying amountConcession


other Total

As at 1 January 2013 1,118,607,403 (203,536,543) 1,099,153 916,170,013As at 31 December 2013 1,038,140,623 (188,459,766) 1,282,233 850,963,090

As at 1 January 2014 1,038,140,623 (188,459,766) 1,282,233 850,963,090As at 31 December 2014 957,639,735 (173,382,989) 1,510,487 785,767,233

5.8 Intangible assets

The concession assets represent the right granted to the Company by the Greek State for the use and operation of the Athens International Airport under the ADA.

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Annual Report 2014



5.9 Held-to-maturity financial assets Held-to-maturity financial assets are analysed as follows:

Based on their maturity date, these assets are classified as follows:

Held-to-maturity financial assets are measured at amortized cost. The fair value measurement of the Held-to-maturity financial assets is categorised as Level 1. As of balance sheet date the fair value of the held-to-maturity financial assets amounted to €250.992.341

5.10 Other non-current assetsOther non-current assets are analysed as follows:

Long term guarantees relate to guarantees given to lessors for operating lease contracts, and were measured at their present value, by discounting future cash flow transactions with the weighted average borrowing rate of the Company.

5.11 InventoriesInventory items are analysed as follows:

During 2014, a provision utilization and release of €59.990 were recognized in the income statement in order to decrease the accumulated provision for certain obsolete and slow moving items to €662.018 which is their estimated net realizable value.

5.12 Construction works in progress

Held-to-maturity financial assets 2014 2013Commercial paper HSBC 0 44,960,984

Bonds EIB 108,255,955 109,744,214

Bonds EFSF 99,342,883 65,781,006

Corporate Bonds 43,151,423 0

Total held-to-maturity financial assets 250,750,261 220,486,204

Analysis of inventories per category 2014 2013Merchandise 599,347 535,763

Consumables 884,732 879,733

Spare parts 4,874,287 4,982,815

Inventory impairment (662,018) (722,008)

Total inventories 5,696,348 5,676,303

Held-to-maturity financial assets 2014 2013Current held-to-maturity financial assets 154,059,640 126,280,127

Non-current held-to-maturity financial assets 96,690,621 94,206,077

Total held-to-maturity financial assets 250,750,261 220,486,204

Analysis of other non-current assets 2014 2013Investment in associates 3,245,439 3,245,439

Long term guarantees 192,665 179,490

Total other non current assets 3,438,104 3,424,929

Analysis of construction works in progress 2014 2013Construction works in progress 1,924,748 1,159,634

Total construction works in progress 1,924,748 1,159,634

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Construction works in progress mainly refer to additions and improvements on the existing infrastructure assets such as technical works, building and facilities, roads etc. These assets will be returned to the Grantor at the end of the Concession Period, together with all other infrastructure assets as described in note 1. Upon the completion of the construction, such assets related to the infrastructure, will increase either the cost of the concession intangible asset or the owned assets.

5.13 Trade receivablesTrade receivable accounts are analysed as follows:

All receivables are initially measured at their fair value, which is equivalent to their nominal value, since the Company extends to its customers short-term credit. Should any of the trade receivable accounts exceed the approved credit terms, the Company charges such customers default interest, (that is, interest on overdue accounts) at 6 months Euribor interest rate plus a pre-determined margin, as stipulated in the respective customer agreements. Such interest is only recognised when it is probable that the income will be collected.

During 2014 a provision release of €201.111 was recognized in the income statement, resulting in an impairment provision as at 31 December 2014 of €5.244.111 (2013: €5.445.222).

5.14 Other receivablesOther receivable accounts are analysed as follows:

Accrued ADF represents the amount of the passengers’ airport fee attributable to the Company, which had not been collected by the Company at year-end. This amount is estimated to be collected progressively in year 2015.

Other Accounts Receivable mainly consists of payments for taxes and duties carried out by the Company, that relate to various tax disputes, as required by relevant laws in order for the tax disputes to be referred to the competent Courts for resolution. The Company has assessed that these amounts are fully refundable upon the successful resolution of the legal cases. The major tax disputes as referred also in note 5.28 Contingent Liabilities and involve taxes imposed for VAT, Property Taxes, Special Once Off Taxes and Municipal Charges.

5.15 Cash and cash equivalentsCash and cash equivalents are analysed as follows:

Analysis of trade receivable accounts 2014 2013Domestic customers 43,107,285 44,037,433

Foreign customers 812,126 669,053

Greek state & public sector 5,791,600 7,435,059

Accrued revenues 378,622 358,267

Provision for impairment of trade receivables (5,244,111) (5,445,222)

Other 2,218,615 1,079,964

Total trade receivable accounts 47,064,138 48,134,555

Analysis of other receivable accounts 2014 2013Accrued ADF 8,335,967 6,632,077

Other 59,839,664 33,812,627

Total other receivable accounts 68,175,631 40,444,704

Analysis of cash & cash equivalents 2014 2013Cash on hand 3,107 3,304

Current & time deposits 24,796,804 34,999,451

Total cash & cash equivalents 24,799,911 35,002,755

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5.16 Share capitalThe issued Share Capital of the Company has been fully paid by the shareholders and comprises 30.000.000 ordinary shares of €10 each amounting to €300.000.000.

The Company is jointly controlled by the Greek State (25% of the shares), the Hellenic Republic Asset Development Fund (30% of the shares), the AviAlliance and other private shareholders (45% of the shares).

5.17 Statutory & other reservesUnder Greek Corporate Law it is mandatory to transfer 5% of the net after tax annual profits to form the legal reserve, which is used to offset any accumulated losses. The creation of the legal reserve ceases to be compulsory when the balance of the legal reserve reaches 1/3 of the registered share capital.

At 31 December 2014 the Company’s legal reserve increased by an amount of €4.590.762 (2013: €2.949.910) and amounted to €48.951.592 (2013:€ 44.360.831).

In addition, there are a reserve for tax purposes amounting to €360.137 (2013:€ 360.137) and a reserve for actuarial gains/losses recognized due to the adoption of the amended IAS 19, amounting to €326.283 (2013:€ 2.334.523)

5.18 Retained earningsIn accordance with Greek Corporate Law, companies are required each year, to declare dividends of at least 35% of after tax profits, after allowing for the legal reserve.In addition, the prevailing bank loan agreements impose specific conditions for the permitted dividend distribution, which have been fulfilled since 2003 when the Company was in the financial position to distribute dividends. The dividends paid in 2014 were €65.100.000 (€2,17 per share). Having taken into account the retained earnings of the previous years a dividend in respect of the year ended 31 December 2014 of €2,91 per share, amounting to a total dividend of €87.300.000 is to be proposed at the Annual General Meeting for distribution. These financial statements do not reflect this dividend payable.

Analysis of other reserves 2014 Movement RateStatutory reserves 48,951,592 4,590,762 44,360,830

Reserves for tax purposes 360,137 0 360,137

Actuarial gains/losses reserve net of tax 326,283 (2,008,240) 2,334,523

Totals 49,638,012 2,582,522 47,055,490

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5.19 Bank loans Borrowings are analysed as follows:

AIA and EIB, under a supplemental agreement signed on 19 December 2008 between them, agreed to partial release the Greek State’s Guarantee on the outstanding balance of EIB Loan and to modify certain terms of the EIB Master Facility Agreement related to the applicable interest rates. The modified terms are effective from 31 July 2009 and include the consolidation and division of the outstanding balance of the initial loan into two loans, Loan A and Loan B. As of 31 December 2014 the outstanding balance of Loan A was €65.274.765 and Loan B €438.626.204.

EIB will benefit from a Greek State Guarantee in respect of Loan B only. However, all revenues, assets and potential claims under ADA and insurance policies have already been assigned to EIB as well as all bank accounts and financial assets have been pledged to EIB as security. Furthermore, AIA is obliged to create security interest over any asset of the Company to the EIB under the finance documents.

In the context of the partial release of the Greek State’s Guarantee, EIB has charged a step-up margin of 30 bps on the initial interest rate applicable to the balance of Loan A. The weighted average interest rate for all tranches under Loan A is 6.41%, whereas the relevant figure for Loan B is 6,12%.

All the covenants set under the EIB Master Facility Agreement have been fulfilled as of 31 December 2014.

The amortised cost of the long term financial liabilities at fixed interest rates (i.e. EIB Loan) is determined using the effective interest rate method, by discounting the future contractual cash flows with the effective interest rate applied to those liabilities. The fair value of the financial liabilities at fixed interest rates is determined by discounting the future contractual cash flows with the current mid-swap interest rate for the average loan life period of such liabilities. The fair value measurement of the financial liabilities is categorised as Level 2.

All borrowings are denominated in Euro, the functional currency of the Company.

5.20 Employee retirement benefitsIn accordance with Greek labour law, employees are entitled to compensation payments in the event of dismissal or retirement with the amount of payment varying depending on the employee’s compensation, length of service and manner of termination (dismissal or retirement). Employees who resign or are dismissed with cause are not entitled to termination payments. The amount payable in the event of retirement is equal to 40% of the amount which would be payable upon dismissal without cause.

Analysis of loans 2014 2013Long term loansEIB loan 438,626,204 503,900,970Total long term loans 438,626,204 503,900,970Short term loansEIB loan 65,274,765 61,475,990Accrued interest & related expenses 2,434,606 3,201,852Total short term loans 67,709,371 64,677,842

Total bank loans 506,335,575 568,578,812

Fair value of the borrowings 2014 2013Carrying amount 503,900,970 565,376,960

Fair value 596,596,764 653,438,304

Excess of fair value over carrying amount (92,695,794) (88,061,344)

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Annual Report 2014



The provision for employees’ retirement benefits is reflected in the attached statement of financial position in accordance with IAS 19R and is calculated, as at the balance sheet date (31 December 2014), based on an independent actuarial study performed by Hewitt.

The results of any valuation depend upon the assumptions employed. Thus, as at 31 December 2014:• If the discount rate used were 1% higher, then the DBO would be lower by about €1,40m.• If the discount rate used were 1% lower, then the DBO would be higher by about €1,73m.

The results of the actuarial study for the provision for employee retirement benefits as computed by the actuary are shown below:

Actuarial study analysis 2014 2013Principal actuarial assumptions at 31 December 2014Discount rate 2.33% 3.78%Range of compensation increase 0%-3,0% 0%-3,0%Plan duration 19.30 17.64Present value of obligations 8,258,359 5,738,189Net liability/(asset) in the balance sheet 8,258,359 5,738,189

Components of income statement chargeService cost 372,290 393,675Interest cost 203,687 189,799Recognition of past service cost (122,046) (802,169)Settlement/curtailment/termination Loss 461,176 169,556Total income statement charge 915,107 (49,139)

Movements in net liability/(asset) in the balance sheetNet liability/(asset) at the beginning of the period 5,738,189 6,262,557Benefits paid directly (1,108,775) (223,869)Total expense recognised in the income statement 915,107 (49,139)Total amount recognized in the OCI 2,713,838 (251,360)Net liability/(asset) in the balance sheet 8,258,359 5,738,189

Reconciliation of benefit obligationsDBO at start of the period 5,738,189 6,262,557Service cost 372,290 393,675Interest cost 203,687 189,799Benefits paid directly by the Company (1,108,775) (223,869)Extra payments or expenses/(income) 461,176 169,556Obligation of past service cost (122,046) (802,169)Actuarial loss/(gain) 2,713,838 (251,360)DBO at the end of the period 8,258,359 5,738,189

RemeasurementsLiability gain/(loss) due to changes in assumptions (2,680,835) 301,652Liability experience gain/(loss) arising during the year (33,003) (50,292)Total actuarial gain/(loss) recognised in OCI (2,713,838) 251,360

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An actuarial loss (the difference between expected and actual DBO as at the end of 2014) of €2.713.838 arose during the year due to the following factors:• Change in financial assumptions: the equivalent discount rate has decreased from 3,78% to 2,33%,

producing a loss of €1.943.270. The inflation and salary increase assumptions have both increased producing a loss of €737.565. Thus, the change in financial assumptions gives rise to an overall actuarial loss of €2.680.835.

• Experience: loss of €33.003 mainly due to higher than assumed salary increases over the period.According to IAS19 Revised, the entire actuarial gains or losses that arise in each accounting period are recognized immediately in the Statement of Other Comprehensive Income (OCI). In this case, the loss arising over 2014 (i.e. €2.713.838) is recognized as an expense in the OCI statement.

Taking into account the above, the provision that the Company should set in the balance sheet of 31 December 2014 should be equal to the DBO as at the same date.

5.21 Provisions

The provision for restoration expenses relates to the future expenses that result from the Company’s contractual obligations to maintain or to restore the infrastructure to a specified condition before it is handed over to the Greek State at the end of the service concession arrangement. It is expected that an aggregate amount of €18,56m will be spent on major restoration activities commencing in year 2016 through to 2025 based on management’s current best estimates.

5.22 Income & deferred tax liabilities

Income tax liabilitiesThe amount reflects the income tax payable on the dividends declared for distribution, although the Company is in a tax loss position, in accordance with paragraph 1 of article 47 of Law 4172/2013.

At the balance sheet date the recognition of the income tax liability amounting to €30.672.973 (2013: €25.344.324) was determined for current year by applying the following formula: Dividends declared for distribution * Income Tax Rate / (1- Income Tax Rate)

Deferred tax assets & liabilitiesThe analysis of deferred tax assets and deferred tax liabilities is as follows:

Deferred tax assets & liabilities 2014 2013Deferred tax assets:Deferred tax assets to be recovered after more than 12 months (108,789,998) (127,303,132)Deferred tax assets to be recovered within 12 months (26,667,914) (27,213,370)Total deferred tax assets (135,457,912) (154,516,502)Deferred tax liabilities:Deferred tax liabilities to be settled after more than 12 months 168,277,126 183,908,476Deferred tax liabilities to be settled within 12 months 16,043,591 15,984,856Total deferred tax liabilities 184,320,717 199,893,332

Deferred tax liabilities (net) 48,862,805 45,376,830

Analysis of provisions As at 1 Jan 2014 Additions Utilisations Releases

As at 31 Dec 2014

Restoration expenses 13,006,636 1,070,258 0 70,668 14,006,226Net other provisions 508,005 0 42,432 48,331 417,241To be settled over 1 year 13,514,641 1,070,258 42,432 118,999 14,423,467

Total provisions 13,514,641 1,070,258 42,432 118,999 14,423,467

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Annual Report 2014



The gross movement on the deferred income tax account is as follows:

The movement in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:

At the balance sheet date the Company has unused tax losses of €365.985.218 available for offset against future taxable profits. A deferred tax asset amounting to €95.156.157 (2013: €115.215.609) has been recognised in respect to these tax losses. According to the provisions of article 25.1.2.(k) of the ADA, (Law 2338/1995) tax losses can be carried forward to relieve future taxable profits without time limit.

Tax losses have primarily arisen from the application of the accelerated depreciation method as provided by paragraph 8 of article 26 of Law 2093/1992. In addition, according to article 25.1.2.(j) of the ADA the accelerated depreciation method provided by Law 2093/1992 refers to tax depreciation and constitutes an allowable deduction for tax purposes even though the depreciation in the annual statutory accounts of the Company may differ from year to year. At the balance sheet date the Company recognised a deferred tax liability on the outstanding accelerated depreciation, net of the corresponding accelerated amortisation of the cohesion fund, amounting to €176.868.206 (2013: €191.820.170).

5.23Other non-current liabilitiesOther long-term liabilities are analysed as follows:

2014 2013As at 1 January 45,376,830 33,066,390

Income statement charge 4,191,573 12,070,882

Other comprehensive income (705,598) 239,558

As at 31 December 48,862,805 45,376,830

Analysis of other non-current liabilities 2014 2013Grant of rights fee payable 110,743,308 106,264,592

Long term securities provided by customers 2,618,839 2,508,665

Total other non-current liabilities 113,362,146 108,773,257

Deferred tax assetsTax losses Provisions

Retirement benefit

obligations Other TotalAs at 1 January 2013 (102,351,033) (4,343,993) (1,037,755) (24,882,480) (132,615,261)

Charged/(credited) to the income statement and other comprehensive income

(12,864,576) 543,203 (174,991) (9,404,878) (21,901,242)

As at 31 December 2013 (115,215,609) (3,800,790) (1,212,746) (34,287,358) (154,516,503)


20,059,452 101,282 (655,244) (446,898) 19,058,592

As at 31 December 2014 (95,156,157) (3,699,508) (1,867,990) (34,734,256) (135,457,912)

Deferred tax liabilities Accelerated tax depreciation

Grant of rights fee

Usufruct of the site Total

As at 1 January 2013 158,994,103 6,574,782 112,766 165,681,651


32,826,067 1,339,307 46,307 34,211,681

As at 31 December 2013 191,820,170 7,914,089 159,073 199,893,332


(14,951,965) (633,127) 12,476 (15,572,616)

As at 31 December 2014 176,868,206 7,280,962 171,549 184,320,717

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The Company pays a quarterly fee to the Greek State during the concession period for the rights and privileges granted in ADA. The carrying amount of the liability represents the present value of the future payment at the balance sheet date. In 2014 a finance charge amounting to €5.478.716 has been recorded as the unwind interest of the liability due to the passage of time (2013: €5.259.875). The amount payable within the next 12 months is included in the other current liabilities. The present value of total future payments at the time of airport opening has been included in the cost of the intangible concession asset which is amortised over the concession period. An amount of €2.435.104 is included in 2014 amortisation of the intangible concession asset with respect to the grant of rights fee (2013: €2.435.104).

Long term securities relate to performance guarantees provided for by the lessees for long- term lease agreements. Long-term securities are measured at their net present value, by discounting the future cash flow payments with the weighted average borrowing rate, at the balance sheet date. The weighted average borrowing rate for the Company for 2014 was at the rate of 6,18%.

5.24 Trade & other payablesTrade & other payable accounts are analysed as follows:

The amount shown above for suppliers represents the short term liabilities of the Company towards its trade creditors as at the corresponding year end for the goods bought and the services they had rendered in the respective year.

Advance payments from customers represent the prepayments effected by the airlines which have selected the “Rolling prepayment” method in settling their financial obligations to the Company for the use of the airport facilities.

Beneficiaries of money – guarantees represent the cash guarantees provided by the concessionaires for the prompt fulfilment of their financial liabilities arising from the signed concessions agreements. The cash guarantees are adjusted each year in accordance with the latest estimate of the expected sales forecast of the concessionaires for the subsequent year.

The carrying amount of trade payables closely approximates their fair value at balance sheet date.

5.25 Other current liabilitiesOther current liabilities are analysed as follows:

Current liabilities mainly concern to accrued cost for services rendered by third parties, private or public, which had not been invoiced at year end.

Analysis of trade & other payable accounts 2014 2013Suppliers 9,570,916 8,402,932

Advance payments from customers 11,516,949 4,724,600

Beneficiaries of money – guarantees 12,730,125 13,762,404

Value added tax 290,422 1,437,971

Other taxes payable and payroll withholdings 2,350,233 3,834,870

Grants of rights fee payable 1,250,000 1,250,000

Other payables 5,535 6,059

Total trade & other payable accounts 37,714,181 33,418,836

Analysis of other current liabilities 2014 2013Accrued expenses for services and fees 10,816,006 12,998,493

Total other current liabilities 10,816,006 12,998,493

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5.26 Operating lease arrangements

The Company as a lesseeOperating lease payments represent rentals payable by the Company for certain of its vehicles. Leases are negotiated for an average term of 4 years and rentals are fixed for the same period.

In the current year, minimum lease payments under operating lease, amounting to €215.746, were recognised in the income statement, while the corresponding amount for the year 2013 was at €223.299. At the balance sheet date the Company has outstanding commitments under non-cancellable operating leases, which are presented in note 5.27.

The Company as a lessorRefer to note 5.1

5.27 Commitments As at 31 December 2014 the Company has the following significant commitments:a) Capital expenditure commitments amounting to approximately €3,3m (2013: €3,2m)b) Operating service commitments, which are estimated to be approximately to €152,0m (2013: €106,9m)

mainly related to security, maintenance, fire protection, transportation, parking and cleaning services, to be settled as follows:

c) Operating lease commitments are analysed as follows:

5.28 Contingent liabilitiesThe Company has contingent liabilities comprising the following:

Tax Audits:a) The Company has not been audited yet by the Tax Authority for the year 2010. Consequently, the tax

liability with respect to the fiscal year 2010 has not been finalized yet. However, management does not expect any additional income taxes to be paid in view of the existence of significant assessable tax losses available for carried forward (Refer to note 5.22).

b) In accordance with the implementation of Law 2238/1994, Ministerial Decision 1159/2011 and Law 4223/2013, years from 2011 until 2014 are audited by individual Certified Auditors and a “Tax Certificate” is issued upon completion of the tax audit. However, Management doesn’t expect any additional taxes to be paid since the Company carries a significant amount of assessable tax losses.

Income tax:In accordance with Law 3808/2009 the Greek State imposed a “special once off tax surcharge” on the profits generated by legal entities in year 2008. The Company was advised by the Tax Authorities that it is liable to pay a special once off tax surcharge amounting to €23m which was higher by €9m than the amount that should be paid in accordance with the provisions of the law and the tax privileges, which have been granted by the ADA. Tax Authorities refused to modify the assessment of the once

Analysis of operating service commitments 2014 2013Within 1 year 32,618,843 35,891,798

Between 1 and 5 years 86,557,649 32,690,017

More than 5 years 32,783,873 38,300,169

As at 31 December 151,960,365 106,881,984

Analysis of operating lease commitments 2014 2013Within 1 year 155,766 206,784

Between 1 and 5 years 252,486 274,555

Total operating lease commitments 408,252 481,339

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off tax surcharge and Management proceeded with the legal actions to remedy the erroneous tax bill referring the issue to the Administrative Court of Appeals on 18 February 2010. The hearing, set for 28 May 2013, took place on 17 December 2013 and the decision is pending. No provision has been recognised based on Company’s experts’ opinion by reference to the specific legislation governing its tax affairs, since the case is expected to be successfully concluded at its favour (refer also to note 5.14).

Value added tax:a) During 2005 a tax audit was performed by the Tax Authority for the years 1998-2003. Income tax

and all other indirect taxes, except VAT, were levied and settled in 2006. With respect to VAT, the Tax Authority questioned the right of the Company to set off the total VAT of all goods purchased and services rendered, as stipulated by article 26 paragraph 7 of Law 2093/1992, in combination with Articles 25.1.1 & 25.1.2 (g) of Law 2338/1995 (ratifying the ADA). The Tax Authority disputed the above right of the Company, and proceeded to impose VAT –including penalties- for the years 1998-2003 of €1,3m, which corresponds to VAT of non-exempt expenses, such as, entertainment and hospitality expenses. The Company appealed to the Court First Instance on 7 February 2006, against the decision of the Tax Authority to impose VAT on such expenses. The Court with its decisions of 03 April 2013 postponed the issuance of the final decisions until the LCIA Arbitration Award be issued. The hearings which initially set for 17 and 20 February 2015 were finally postponed for 23 October 2015 and 20 December 2016.

b) In addition, the Tax Authority issued a provisional VAT audit report, for the years 2001-2003, expressing reservation with respect to the right of the Company to set off VAT, which corresponds to activities not subjected to VAT, i.e. property leases, without imposing any tax. On this reservation, the Tax Authority requested the opinion of the Ministry of Finance, which finally responded in 2010 considering that the Company has no right to set off the VAT corresponding to activities not subjected to VAT in accordance with the general provision of the VAT Law (2859/2000) and the 6th EU Directive. Following the response by the Ministry of Finance, the Tax Authority preceded with the finalisation of the interim audit report imposing VAT –including penalties- for the years 2001-2003 of €150,3m, which corresponds to VAT on the acquisition of fixed assets and operating expenses related to VAT exempt activities. The Company appealed to the Administrative Court of Appeals on 28 September 2010, against the decision of the Tax Authority to impose VAT on such capital and operating expenses and also referred the issue to the London Court of International Arbitration, together with the issue described in a) above, in accordance with the article 44 of the ADA. The hearing of the case before the Administrative Court of Appeals took place on 17 December 2013, and the Court by its decisions 3140/2014, 3141/2014, 3142/2014 postponed the hearing in view of the Dispute Resolution procedure, that had been omitted by the Tax Authorities in accordance with the opinion of the Court. Upon the provision of the relevant clarifications, given by the Tax Authorities to the Court, the hearing was set to take place on 20 December 2016. No provision has been recognised based on the final award of the London Court of International Arbitration No 101735, which was issued at the favour of the Company on 27 February 2013.

c) Following the decision of the Ministry of Finance – as referred above under b) - the Tax Authority proceeded with the audit of the years 2004-2009 imposing VAT –including penalties- for the years 2004-2009 of €11,8m, which corresponds to VAT on the acquisition of fixed assets and operating expenses related to VAT exempt activities. The Company appealed to the Administrative Court of Appeals on 21 October 2011, against the decision of the Tax Authority to impose VAT on such capital and operating expenses and also referred the issue to the London Court of International Arbitration, together with the issues described in a) and b) above, in accordance with the article 44 of the ADA. The hearing of the case before the Administrative Court of Appeals scheduled for 19 February 2013 took place on 17 December 2013 which by its decision rejected the appeals of the Company. The decisions were notified to the Tax Authorities, which imposed the remaining unpaid VAT amount of €6.3m and additional penalties of €0.4m. The Company filed respective annulment petitions before the Conseil d’Etat for the cassation of the decisions of the Administrative Court of Appeals. The Conseil d’Etat by its Decisions 582/2015, 583/2015, 584/2015, 585/2015, 586/2015 and 587/2015, which were notified to the Company on 11 March 2015, accepted the annulment petitions of the Company

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on the VAT disputes for the years 2004-2009 and referred back the cases to the Administrative Court of Appeals. No provision has been recognised based on the final award of the London Court of International Arbitration No 101735, which was issued at the favour of the Company on 27 February 2013.

d) Following a temporary tax audit performed in 2013 concerning the fiscal years 2010 and 2011, the Tax Authority issued in 2013 a temporary VAT assessment for these years, amounting to €3,0m -including penalties-, which corresponds to VAT on the acquisition of fixed assets and operating expenses related to VAT exempt activities. The Company duly appealed before the competent Dispute Resolution Department of the Ministry of Finance aiming to resolve the issue at the administrative level, which however rejected our appeal. The Company appealed before the Administrative Courts of Appeals on 8 May 2014, against the decision of the Tax Authority to impose VAT on such capital and operating expenses. The hearing, set for 3 November 2014, was postponed for 8 June 2015. Based on Company’s experts’ opinion by reference to the final award of the London Court of International Arbitration No 101735, which was issued at the favour of the Company on 27 February 2013, no provision has been recognised.

e) Following a temporary tax audit performed in 2014 concerning the fiscal years 2012, the Tax Authority issued in 2013 a temporary VAT assessment for these years, amounting to €0,9m -including penalties-, which corresponds to VAT on the acquisition of fixed assets and operating expenses related to VAT exempt activities. The Company duly appealed before the competent Dispute Resolution Department of the Ministry of Finance aiming to resolve the issue at the administrative level, which however rejected our appeal. The Company appealed before the Administrative Courts of Appeals on 4 September 2014, against the decision of the Tax Authority to impose VAT on such capital and operating expenses. The hearing, set for 10 November 2014, was postponed for 12 October 2015. Based on Company’s experts’ opinion by reference to the final award of the London Court of International Arbitration No 101735, which was issued at the favour of the Company on 27 February 2013, no provision has been recognised.

Property tax:a) Further to the completion of the temporary tax audit on real property for the years 2010, 2011 and

2012, the Tax Authority issued in 2013 a real property tax assessment for these years, amounting to €12,9m -including penalties-. With respect to property tax, the Tax Authority questioned the right of the Company to be exempted of any property tax until 31 December 2015 as provided by the paragraph 5 of the article 26 of the Law 2093/1992, in combination with articles 25.1.1 & 25.1.2 of the Law 2338/1995 (the Airport Development Agreement). The Company duly appealed before the competent Dispute Resolution Department of the Ministry of Finance aiming to resolve the issue at the administrative level, which however rejected our appeal. The Company appealed to the Administrative Court of Appeals on 30 May 2014, against the decision of the Tax Authority to impose property tax and also referred the issue to the London Court of International Arbitration, in accordance with article 44 of the ADA. The hearing of the case before the Administrative Court of Appeals, set for 10 November 2014, was postponed for 12 October 2015. No provision has been recognised, based on Company’s experts’ opinion by reference to the specific legislation governing its tax affairs, since no significant liability is expected to be materialised.

b) Further to the completion of the final tax audit on real property for the year 2013, the Tax Authority issued in 2014 a real property tax assessment for this year, amounting to €3,2m -including penalties-. With respect to property tax, the Tax Authority questioned the right of the Company to be exempted of any property tax until 31 December 2015 as provided by paragraph 5 of Article 26 of Law 2093/1992, in combination with Articles 25.1.1 & 25.1.2 of Law 2338/1995 (ratifying the ADA). The Company duly appealed before the competent Dispute Resolution Department of the Ministry of Finance aiming to resolve the issue at the administrative level, which however rejected our appeal. The Company appealed to the Administrative Court of Appeals on 4 September 2014, against the decision of the Tax Authority to impose property tax and also referred the issue to the London Court of International Arbitration together with the issues described in a) above, in accordance with Article 44 of the ADA. The hearing of the case before the Administrative Court of Appeals set for 12 January 2015, will take place on 5 October 2015. No provision has been recognised, based on Company’s experts’ opinion by

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reference to the specific legislation governing its tax affairs, since no significant liability is expected to be materialised.

c) Further to the completion of the final tax audit on real property for the years 2008 and 2009, the Tax Authority issued in 2014 a real property tax assessment for these years, amounting to €11,6m -including penalties-. With respect to property tax, the Tax Authority questioned the right of the Company to be exempted of any property tax until 31 December 2015, as provided by paragraph 5 of Article 26 of the Law 2093/1992, in combination with Articles 25.1.1 & 25.1.2 of Law 2338/1995 (ratifying the ADA). The Company duly appealed before the competent Dispute Resolution Department of the Ministry of Finance aiming to resolve the issue at the administrative level, which however rejected our appeal. The Company appealed to the Administrative Court of Appeals on 9 January 2015, against the decision of the Tax Authority to impose property tax and also referred the issue to the London Court of International Arbitration together with the issues described in a) and b) above, in accordance with Article 44 of the ADA. The hearing of the case before the Administrative Court of Appeals has not been set so far. No provision has been recognised, based on Company’s experts’ opinion by reference to the specific legislation governing its tax affairs, since no significant liability is expected to be materialised.

d) Further to the provisions of Law 4172/2013 a Special Fee on Properties Estate for the year 2013 was imposed to AIA as usufructuary of the Airport land amounting to €12,9m. With respect to property tax, the Tax Authority questioned the right of the Company to be exempted of any property tax until 31.12.2015 as provided by paragraph 5 of Article 26 of Law 2093/1992, in combination with Articles 25.1.1 & 25.1.2 of Law 2338/1995 (ratifying the ADA). The Company appealed to the Administrative Court of Appeals on 7 July 2014, against the decision of the Tax Authority to impose property tax and also referred the issue to the London Court of International Arbitration together with the issues described in a), b) and c) above, in accordance with Article 44 of the ADA. The hearing of the case before the Administrative Court of Appeals set for 12 January 2015, was postponed for 5 October 2015. No provision has been recognised, based on Company’s experts’ opinion by reference to the specific legislation governing its tax affairs, since no significant liability is expected to be materialised.

Municipal charges:a) By means of a decision taken on 5 November 2009 the Mayor of Paiania Municipality charged

the Company with the payment of a total of €37m for the compensative municipal charges and penalties for the provision for waste, landscaping, cleanliness and lighting maintenance for the period 1 January 2004 to 31 December 2009. In addition the Municipality of Paiania has started charging municipal charges for the provision for waste, landscaping, cleanliness and lighting maintenance through monthly electricity bills since March 2010, amounting in total at 2014 year end to €15,5m. Management filed a number of petitions with the Administrative Court of Athens versus the Municipality of Paiania, accompanied by corresponding petitions for the deferment of payments, claiming that in accordance with the provisions of the ADA, AIA has been granted with the exclusive right to provide such services to airport users. Said deferment of payment for the years 2004-2009 has been finally granted by order of the competent Administrative Court of Athens until the issuance of a Court Decision on the petitions, while the respective petitions for the deferment of payment for the years 2010-2013 have been rejected on the ground that the Company would not suffer an irreparable damage. On 4 July 2012, the Administrative Court of Appeals accepted in substance the petitions of the Company related to the imposition of municipal charges and penalties for the fiscal years 2004-2009 rendering the respective decisions of the Mayor of Paiania as null and void to that effect. As per decisions No. 3495/2013, 3496/2013, 3497/2013 of the Administrative Courts of Appeal the petitions for the years 2010-2012 were fully upheld, thus rendering the imposition of municipal charges for the years 2010-2012 fully unlawful. The Company filed a lawsuit versus the Municipality of Paiania with the competent Administrative Court of Athens requesting the reimbursement of the municipal charges imposed for the years 2010-2012 and already paid to the latter, amounting to €8,8m.

b) By means of a decision taken on 27 December 2012 the Mayor of Spata Municipality charged the Company with the payment of a total of €2,2m for the compensative municipal charges and penalties

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for the provision for waste, landscaping, cleanliness and lighting maintenance for the year 2007, against spaces in Main Terminal Building and Satellite Terminal Building of the Airport. In addition in 2013 the Spata Municipality served upon our Company a Mayor’s decision imposing municipal charges for the years 2008-2010 including surcharges in the amount of €6,5m. Regarding the imposition for the year 2007, Management filed a petition with the Administrative Court of Athens versus the Municipality of Spata, accompanied by corresponding petition for the deferment of payment, claiming that in accordance with the provisions of the ADA, AIA has been granted with the exclusive right to provide such services to airport users. Said deferment of payment has been provisionally granted by order of the competent judge of the Administrative Court of Athens until the issuance of a Court Decision on the petitions. In addition, on the basis of new applicable legislation, the Company prior to its legal actions before the competent administrative courts filed a motion for the annulment of said decision before the General Secretary of Decentralized Administration of Attica. By virtue of the decision no 14104/12028 dated 14 March 2013 our motion was fully upheld. Regarding the imposition of municipal charges for the years 2008-2010 additional petition was filed before the Competent Administrative Court of Athens alongside with the petition for the suspension of payment of the respective charges and the motion for the annulment of the said decision before the General Secretary of Decentralized Administration of Attica. Said deferment of payment has been provisionally granted by order of the competent judge of the Administrative Court of Athens until the issuance of a Court Decision on the petitions. The General Secretary of Decentralized Administration of Attica by its decision 8889/7425/2014 accepted our petition and annulled the imposition of charges.

Other:a) Following the termination of Home Base Contract from the Athenian Engineering S.A (successor

of Olympic Engineering), on 24 December 2012, such termination to come into force as from 1 May 2013, the above referred company, by virtue of an extrajudicial statement, dated 22 February 2013, notified our Company that its assessment about the commercial value of Home Base’s landed property is amounted to €43,5m. That assessment, as Athenian Engineering S.A. claims in its extrajudicial statement, is based on the results of a respective estimation study, which was conducted by an independent international organization. Our Company, with its extrajudicial statement, dated 7 March 2013 which was addressed to Athenian Engineering S.A. notified that it does not accept said assessment about the commercial value of Home Base’s landed property, and is already proceeding to its own assessment in accordance with the rules and principles of the economic science. The dispute has been referred to international arbitration (London Court of International Arbitration-LCIA) for final resolution, as provided in the contract. Based on the LCIA decision (Nr. 132494), which was issued on 22 January 2015 and notified to the Company on 12 February 2015, the commercial value of Home Base’s landed property was set at €14,1m, which after deducting the accepted debt of Athenian Engineering towards the Company of €10,6m, leads to a net outflow payment for the Company of €3,5m plus overdue interest. Based on specific arbitration rules the counterparties have 28 calendar days to file any claim, while the final conclusion of the dispute requires the approval of the Board and afterwards the mutual signing of a formal document, by which the parties accept the decision of the court and abdicated from any further claim. Based on Company’s experts’ opinion by reference to the provisions of the Agreement signed between the parties and taken into consideration the reciprocal claims, no provision has been recognised.

b) There are a number of pending legal lawsuits against the Company amounting to approximately €5,1m (2013: €5,5m) for which Management, following consultation with its Legal Counsel, believes that there is sufficient ground to successfully defend these claims. No provision for these claims has been recognised in these financial statements on the basis that no material liability is expected to arise.

5.29 Related parties transactionsAthens International Airport S.A. is a privately managed Company, having as major shareholders the Greek State and AviAlliance Group, each one of them holding more than 20% of the shares as at 31 December 2014. The AviAlliance Group became the main Private Shareholder of the Company during 2013, following the sale of Hochtief AG’s shares in Hochtief AirPort GmbH (AIA’s shareholder

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by 26,67%) to a limited partnership under German law (“WAP”) named World Airport Partners GmbH & Co.KG, that is a wholly-owned subsidiary of the Public Sector Pension Investment Board (PSP Investments), a Canadian Crown corporation organized under the laws of Canada. Subsequently, as at 30 October 2013, Hochtief AirPort GmbH was renamed to AviAlliance GmbH. Furthermore the Company’s other shareholder Hochtief AirPort Capital GmbH & Co KGaA (13,33% share) was renamed to AviAlliance Capital GmbH & Co KGaA as at 29 November 2013.

The Company had undertaken related party transactions with a company controlled by its current Private Shareholder, by receiving specific services. Furthermore, the Company provides either aeronautical or non-aeronautical services to Public sector controlled entities and at the same time, receives services from public entities i.e. fire protection, medical etc. The above goods/services/works are based on corresponding market’s terms and conditions. The transactions with the Greek State and the current Private Shareholder have as follows (the transactions with the prior private shareholder in 2013 are disclosed for comparison purposes):

a) Sales of services and rental fees

b) Purchases of services

c) Year end balances arising from sales/purchases of services and rental fees

d) Key management compensationKey management includes personnel authorised by the Board of Directors for planning, directing and controlling the activities of the Company. Compensation paid or payable to key management for employee services rendered is shown below:

Purchases of services 2014 2013Greek State 5,641,192 5,347,413

AviAlliance Group 6,270 0

Hochtief Group (prior private shareholder) 0 2,061,963

Total 5,647,462 7,409,376

Analysis of BoD and key management compensation 2014 2013Board of directors’ fees 476,400 461,040

Short-term employment benefits of key management 2,184,186 1,656,039

Total BoD and key management compensation 2,660,586 2,117,079

Sales of services 2014 2013Hochtief Group (prior private shareholder) 0 244,638

Greek State 11,824,476 11,321,588

Total 11,824,476 11,566,226

Year end balances arising form sales/purchases of services and rental fees 2014 2013

Trade and other receivables:

Greek State 4,163,029 8,173,699

Total operating lease commitments 4,163,029 8,173,699

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Annual Report 2014



5.30 Events after the balance sheet datea) The Decisions of the Conseil d’Etat regarding the annulment petitions of the Company for the

cassation of the decisions of the Administrative Court of Appeals were notified to the Company on 11 March 2015. For more details refer to note 5.28, item “Value added tax”.

b) The LCIA decision 132494 regarding the dispute with Athenian Engineering has been issued on 22 January 2015 and notified to the Company on 12 February 2015. For more details refer to note 5.28, item “other, a)”

c) Other than the above, no significant events have been incurred after the balance sheet date, until the approval of the Financial Statements by the Board of Directors.

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To the Shareholders of “ATHENS INTERNATIONAL AIRPORT S.A.”

Report on the Financial StatementsWe have audited the accompanying financial statements of “ATHENS INTERNATIONAL AIRPORT S.A.” which comprise the statement of financial position as of 31 December 2014, the income statement and statement of comprehensive income, statement of changes in equity and cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, as adopted by the European Union, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of “ATHENS INTERNATIONAL AIRPORT S.A.” as at December 31, 2014 and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards, as adopted by the European Union.

Reference on Other Legal MattersWe verified the conformity and consistency of the information given in the Board of Directors’ report with the accompanying financial statements in accordance with the requirements of articles 43a and 37 of Codified Law 2190/1920.

PricewaterhouseCoopers S.A. Athens, 24 March 2015

268 Kifissias Avenue The Certified Auditor – Accountant

152 32 Halandri

SOEL Reg. No. 113

Dimitris Sourbis

SOEL Reg. No. 16891

Independent Auditor’s Report

Annual Report 2014


Airport Moments

ACES – Athens2nd Airport Chief Executives’ SymposiumOnce again, AIA invited in Athens top executives from air transport, the international banking & financial sectors, and the tourism industry.

Athens International AirportACI - Europe «Best Airport Awards 2014» winner Athens International Airport: Winner in the 10-25 million passenger category in this year’s 10th “Best Airport Awards”, in the framework of the ACI-Europe Annual Congress.

2014

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2014 Airport Moments

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Brussels Airlines April 2014: Return to Athens.

Turkish Airlines celebrates 66 years of service to Athens.

Destination… Athens for the Parthenon SculpturesPassengers and airport visitors are invited to express their opinion!

“PerhaΨ you’re an AΘenian too” Athens travel to European airports!

Airline events

Iberia extends its services to Madrid on a year-round basis!

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AIA’s 15th Airline Marketing Workshop AIA awards airlines for their development in 2014… On a famous musical note.

Golden «Ermis» Award for the airport’s

new web page.

World Routes 2014

AIA is the most awarded airport in the context of the Routes Conferences.

Airlines honour Athens International Airport with one more airport marketing distinction.

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Routes Europe 2014 Airlines honour Athens International Airport with one more international distinction.

Full Scale Emergency Exercise November 2014.

Imam Baildi The famous Imam Baildi airport performance!

June 21: European Music Day The Athens State

Orchestra at the airport.

Christmas at the airport!The Philharmonic Orchestra of the Alimos Music school entertained passengers and visitors!

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Internal Audit

Consumers Business

Unit

Information Technology &

Telecommunica-tions Business

Unit

Aviation Business

Unit

Chief Operations Officer (COO)

A. Aravanis

Security Operations

Environmen-tal

Services

Business Control

Athens International Airport S.A. “Eleftherios Venizelos”

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Organizational Structure

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31/12/2014

Boardof Directors

Chief Executive Officer (CEO)

Dr I.Ν. Paraschis

Chief Development Officer (CDO)

G. Eleftherakos

Commu-nications &Marketing

Corporate Planning

Corporate Control

Property Business

Unit

Corporate Finance

Unit

Corporate Security

Legal Affairs

Chief Finance& Administration

Officer (CFO)

P. Michalarogiannis

HumanResources

Management

Corporate Quality

Technical Services

Business Control

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This document has been printed on environmentally friendly, high - quality paper with the following composition: 40% recycled paper, 55% FSC -

certified paper pulp (certificate of sustainable forest management) and 5% cotton fibres to improve paper texture and appearance.

It is eco label - compliant, adhering to all environmental management ISO standards as well as the relevant ISO standard for reduced carbon dioxide (CO2) generation and

emissions during manufacturing. It features neutral ph; it is free of heavy metals and is non-chlorinated to avoid contamination of water, the ground water table and the sea. It

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Athens International Airport S.A.Tel.: +30 210 353 1000 • Fax: +30 210 353 0001

www.aia.gr

aia annual report 2014

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