Schiphol.nl   •   Contact

Annual Statements

Home Annual Statements Financial Statements 2013 Notes to the consolidated financial statements Notes to the consolidated balance sheet Loans to associates

20. Loans to associates

(in thousands of euros)

2013

2012

Carrying amount as at 1 January

80,192

92,141

Movements in the year

Accrued interest

5,848

6,771

Amortisation

-

- 318

Exchange differences hedging transactions

- 14,110

- 344

Other exchange differences

- 925

- 283

Dividend received

- 11,462

- 17,775

Total movements in the year

- 20,649

- 11,949

Carrying amount as at 31 December

59,543

80,192

Loans to associates relate exclusively to the Redeemable Preference Shares in Brisbane Airport Corporation Holdings Ltd (BACH) held by Schiphol Group and which carry entitlement to a cumulative dividend. The redemption date for these shares is formally 30 June 2014 but BACH has extended the maturity to 2022. In view of this the redeemable preference shares of AUD 92.6 million (59.5 million euros including accumulated dividend) are classified as a short-term loan to an associate and the dividend on these shares is treated as financial income.

The accrued dividend is the valuation of the Redeemable Preference Shares at amortised cost and part of the dividend for the past three years which the management of BACH decided not to distribute. Given its cumulative preference nature, however, this dividend is still recognised as receivable and as income. BACH paid the remaining undistributed dividend during 2013.

The currency risk relating to the nominal value of this long-term loan and the accrued dividends is hedged by annual forward transactions which hedge the Australian dollar position against euros. The hedge transactions are recognised as a cash flow hedge while the exchange differences relating to part of the loan and the dividend that is not hedged and the period between the successive annual forward transactions are recognised in the income statement. Other exchange differences are recognised in the reserve for hedging transactions through total comprehensive income.

The fair value of the loans to associates at 31 December 2013 was 60.1 million euros (AUD 93.4 million). The effective dividend was approximately 10%. The fair value is estimated by discounting the future contractual cash flows at current market interest rates available to the borrower for similar financial instruments.