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Annual Statements

Financial reporting

Price winner 2012 in the category non-listed

Home Annual Statements Financial Statements 2012 Notes to the consolidated financial statements Notes to the consolidated balance sheet Loans to associates

20. Loans to associates

(in thousands of euros)

2012

2011

Carrying amount as at 1 January

92,141

88,221

Movements in the year

Accrued interest

6,771

838

Amortisation

- 318

-

Exchange differences hedging transactions

- 344

3,017

Other exchange differences

- 283

65

Dividend received

- 17,775

-

Total movements in the year

- 11,949

3,920

Carrying amount as at 31 December

80,192

92,141

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 is currently examining the possibility of extending their maturity to 2022. In view of this the redeemable preference shares of AUD 101.1 million (EUR 80.2 million including accumulated dividend) are classified as a long-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 majority of the undistributed dividend during 2012.

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 2012 was EUR 78.4 million (AUD 99.5 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.