1. business and industrial
2. company
3. annual report

Aerodrom Ljubljana, d.d.
ANNUAL REPORT 2014
February 2015
Annual Report 2014
CONTENTS
DECLARATION BY THE MANAGEMENT BOARD............................................................................................................. 3
BUSINESS REPORT .......................................................................................................................................................... 4
1
2
INTRODUCTION ........................................................................................................................................................ 4
1.1
HIGHLIGHTS OF OPERATIONS....................................................................................................................... 4
1.2
SIGNIFICANT EVENTS ..................................................................................................................................... 5
1.3
LETTER FROM THE MANAGEMENT BOARD ................................................................................................. 7
1.4
SUPERVISORY BOARD REPORT ................................................................................................................... 9
1.5
PRESENTATION OF AERODROM LJUBLJANA, D.D. ................................................................................... 13
CORPORATE GOVERNANCE STATEMENT .......................................................................................................... 16
2.1
STATEMENT OF COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE ..................................... 16
2.2
CORPORATE GOVERNANCE CODE FOR CAPITAL ASSETS OF THE REPUBLIC OF SLOVENIA ........... 17
2.3
RECOMMENDATIONS OF THE MANAGER OF INDIRECT AND DIRECT STATE CAPITAL INVESTMENTS18
2.4
MAIN FEATURES OF THE INTERNAL CONTROL SYSTEM AND OF RISK MANAGEMENT IN RELATION
TO THE FINANCIAL REPORTING PROCEDURE ....................................................................................................... 19
3
2.5
INFORMATION PROVIDED UNDER THE SIXTH PARAGRAPH OF ARTICLE 70 OF THE ZGD-1 .............. 20
2.6
GENERAL MEETING OF SHAREHOLDERS .................................................................................................. 23
2.7
COMPOSITION AND FUNCTIONING OF MANAGEMENT AND SUPERVISORY BODIES........................... 24
COMPANY OPERATIONS IN 2014 AND PLANS FOR 2015 ................................................................................... 26
3.1
ECONOMIC CONDITIONS .............................................................................................................................. 26
3.2
MARKET POSITION AND MARKETING ACTIVITIES..................................................................................... 27
3.3
TRANSPORT ................................................................................................................................................... 29
3.4
ANALYSIS OF PERFORMANCE..................................................................................................................... 35
3.5
EMPLOYEES ................................................................................................................................................... 46
3.6
INVESTMENTS IN INFRASTRUCTURE AND EQUIPMENT .......................................................................... 49
4
AELG SHARES AND OWNERSHIP OF THE COMPANY ........................................................................................ 51
5
RISK MANAGEMENT ............................................................................................................................................... 54
6
SUSTAINABLE DEVELOPMENT ............................................................................................................................. 57
6.1
RESPONSIBILITY TO AIRPORT USERS AND THE GENERAL PUBLIC....................................................... 57
6.2
RESPONSIBILITY TO EMPLOYEES .............................................................................................................. 60
6.3
RESPONSIBILITY TO THE SOCIAL ENVIRONMENT .................................................................................... 62
6.4
RESPONSIBILITY TO THE NATURAL ENVIRONMENT ................................................................................ 62
6.5
RESPONSIBILITY FOR SAFETY .................................................................................................................... 68
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Annual Report 2014
6.6
RESPONSIBILITY FOR QUALITY ASSURANCE ........................................................................................... 71
FINANCIAL REPORT ........................................................................................................................................................ 74
1
DECLARATION BY THE MANAGEMENT BOARD .................................................................................................. 74
2
INDEPENDENT AUDITOR'S REPORT .................................................................................................................... 75
3
FINANCIAL STATEMENTS ...................................................................................................................................... 77
4
5
3.1
BALANCE SHEET ........................................................................................................................................... 77
3.2
INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME ............................................... 78
3.3
CASH FLOW STATEMENT ............................................................................................................................. 79
3.4
STATEMENT OF CHANGES IN EQUITY ........................................................................................................ 80
SIGNIFICANT ACCOUNTING POLICIES ................................................................................................................. 81
4.1
REPORTING COMPANY................................................................................................................................. 81
4.2
BASIS FOR COMPILING FINANCIAL STATEMENTS .................................................................................... 81
4.3
SIGNIFICANT ACCOUNTING POLICIES ........................................................................................................ 82
NOTES TO THE FINANCIAL STATEMENTS ........................................................................................................... 92
5.1
NOTES TO THE BALANCE SHEET ................................................................................................................ 92
5.2
NOTES TO THE INCOME STATEMENT ...................................................................................................... 110
5.3
NOTES ON THE CASH FLOW STATEMENT ............................................................................................... 116
5.4
FINANCIAL RISKS ........................................................................................................................................ 116
5.5
OTHER EXPLANATORY NOTES.................................................................................................................. 118
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Annual Report 2014
DECLARATION BY THE MANAGEMENT BOARD
The members of the Management Board of Aerodrom Ljubljana d.d., namely Zmago Skobir (president of the
Management Board), Bernarda Trebušak and Dr Iztok Podbregar, hereby guarantee that the company’s annual report,
including the corporate governance statement, is compiled and published in accordance with the Companies Act, the
Financial Instruments Market Act and the International Accounting Standards. In this regard, the company conducts itself
in accordance with the competences, due diligence and responsibilities set out in the Companies Act for a public limited
company.
In accordance with Article 110 of the Financial Instruments Market Act, the president and members of the Management
Board hereby declare that, to the best of our knowledge:
the financial report of Aerodrom Ljubljana, d.d. for 2014 was compiled in accordance with the International
Financial Reporting Standards and that it provides a true and fair picture of the assets, liabilities, financial
position, operating results and total comprehensive income of Aerodrom Ljubljana, d.d., and
the business report includes a fair presentation of the development and performance of the company’s business
and its financial position, including a description of the principal types of risks to which Aerodrom Ljubljana, d.d.
is exposed.
As the Management Board we affirm our responsibility for properly administering accounting, for taking appropriate
measures to secure property and other assets, and for maintaining the value of assets and preventing and detecting
fraud and other irregularities. The Management Board also confirms that the financial statements of Aerodrom Ljubljana,
d.d. were compiled on a going-concern basis, that the relevant accounting policies were consistently applied, and that
accounting estimates were made according to the principle of prudence and the diligence of a good manager.
Given that no transactions were concluded with the controlling company Fraport AG or companies in the Fraport Group
in 2014, Aerodrom Ljubljana, d.d. suffered no curtailment in this respect. Neither was any act committed or omitted
whereby Aerodrom Ljubljana, d.d. would incur any damage that would be the result of the influence of the controlling
company Fraport AG over Aerodrom Ljubljana, d.d.
The president and other members of the Management Board of Aerodrom Ljubljana, d.d. declare that we have been
briefed on all substantive components of the annual report, we approve them, and we confirm this with our signatures.
Bernarda Trebušak
Zmago Skobir
Member of the Management Board
President of the Management Board
Dr Iztok Podbregar
Member of the Management Board
Zg. Brnik, 23 February 2015
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Annual Report 2014
BUSINESS REPORT
1 INTRODUCTION
1.1 HIGHLIGHTS OF OPERATIONS
TRAFFIC
Number of passengers
Aircraft movements
Cargo (in tonnes)
ANALYSIS OF PERFORMANCE
Operating revenues - in thousand euros
Net sales revenue - in thousand euros
Operating expenses - in thousand euros
EBITDA - operating profit before interest, taxes and
depreciation/amortization - in thousand euros
EBIT - operating profit - in thousand euros
Net finance income/expenses - in thousand euros
Pre-tax profit - in thousand euros
Net profit - in thousand euros
Total comprehensive income for the period - in thousand euros
Value added - in thousand euros
(operating revenues - costs of materials and services - other operating expenses excluding
revaluation operating expenses and provisions)
BALANCE SHEET
Assets as at 31.12.2014/31.12.2013 - in thousand euros
Shareholder equity as at 31.12.2014/31.12.2013 - in thousand euros
EMPLOYEES
No. of employees as at 31 December
Average no. of employees based on hours worked
INVESTMENTS
Investments in infrastructure and equipment - in thousand euros
INDICATORS
EBITDA margin
EBIT margin
Value added per employee - in euros
(value added/average no. of employees based on hours worked)
1.-12./14
1.-12./13
Index
14/13
1,338,619
31,405
18,983
1,321,100
33,111
17,777
101.3
94.8
106.8
32,049
31,828
25,353
31,265
30,987
25,133
102.5
102.7
100.9
11,184
6,695
-1,716
4,979
3,594
2,969
10,651
6,132
-65
6,067
5,194
2,940
105.0
109.2
/
82.1
69.2
101.0
23,441
22,630
103.6
106,075
92,781
131,027
124,785
81.0
74.4
402
395.9
402
391.5
100.0
101.1
3,200
8,955
35.7
0.35
0.21
0.34
0.20
102.4
106.5
59,208
57,804
102.4
9,078
13,268
68.4
3.36%
4.26%
78.9
3.03%
3.99%
76.1
0.95
59.04
1.37
27.60
69.2
213.9
24.44
2.42
32.87
0.84
74.4
287.7
Net profit per employee - in euros
(net profit/average no. of employees based on hours worked)
Net ROE - in %
(net profit/average shareholder equity excluding net profit for the period)
Net ROA - in %
(net profit/average assets)
SHARE
Diluted earnings per share - in euros
(net profit/average number of all shares)
Closing share price as at 31 December - in euros
Book value of a share as at 31 December - in euros
(shareholder equity/total number of shares issued)
Closing share price to book value of a share (P/B)
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Annual Report 2014
1.2 SIGNIFICANT EVENTS
1.2.1 SIGNIFICANT EVENTS IN 2014
In February the Supervisory Board approved the company’s strategic business plan for the 2014 to 2020 period,
and the business plan for 2014 as revised to comply with the strategy.
Having been appointed the consultants in the sale of the company by the majority shareholders of Aerodrom
Ljubljana, d.d., on 20 March 2014 KPMG published a call for declarations of interest in the purchase of a
majority holding of shares. This formally opened the first phase of the company’s sale, in which non-binding
offers to purchase 75.5% of the shares in Aerodrom Ljubljana were collected.
A general agreement on mutual relations and the establishment of superficies with regard to the use of specific
land at the airport was signed on 28 March, based on which the airport acquired superficies on 248 hectares of
land. The superficies was established for a period of 40 years beginning 1 January 2014.
Under the summer timetable (30 March to 25 October), eight airlines operated scheduled flights to a total of 24
destinations. The domestic airline Adria Airways launched scheduled services to Warsaw (three times a week)
and Prague (four times a week), and Finnair resumed its service between Ljubljana and Helsinki (four times a
week) on 16 April.
The annual general meeting held on 13 May discussed the Supervisory Board’s report on the review of the
annual report for 2013, conferred official approval on the Management Board and the Supervisory Board for
their work in the previous year, appointed the official auditor, and discussed the use of the distributable profit. In
its proposal for the use of the distributable profit the Management Board took account of the general meeting
resolution (September 2013) abandoning the project to construct a new passenger terminal, and of the basic
guidelines (expectations) of the company’s shareholders with regard to higher dividend payments. In light of the
company’s performance, the available liquid assets and the risk assessment, the payment of dividends in the
total amount of EUR 34,972,825.72 was proposed and approved by vote (the payment was made on 22 July).
Iran Air made refuelling stops at the airport in 2014, except for the period between June and November.
On 9 July the European Commission announced its decision that the recapitalisation of Adria Airways d.d.
between 2007 and 2011 constituted allowable state aid for the domestic airline. The decision in favour of the
domestic airline, our largest business partner, is positive news for Aerodrom Ljubljana, d.d.
The sale of Adria Airways Tehnika d.d. is in progress. In light of the progress of the sale process and the state
of negotiations, there is a chance that the selling price for the interest, which is being sold in its entirety, will not
meet the valuation of Adria Airways Tehnika d.d. as at 31 December 2014 based on which the investment in the
aforementioned company was valued in Aerodrom Ljubljana, d.d.’s books of account as at 31 December 2014
(an additional impairment was charged against the investment as at 31 December 2014, which is explained in
detail in point 5.1.6 of the Financial Report - Available-for-sale assets).
For the purpose of providing current liquidity, the company concluded two revolving loan agreements in the total
amount of EUR 15 million in June and July, for the period until 2017.
A resolution was passed by Slovenski državni holding, d.d. calling for an audit of the half-yearly financial
statements of Aerodrom Ljubljana, d.d. as at 30 June 2014 (by Deloitte revizija d.o.o.) in accordance with the
International Financial Reporting Standards. The audit was conducted in August.
On 10 October Slovenski državni holding, d.d. informed the company about the successful sale of a 75.5%
participating interest in Aerodrom Ljubljana, d.d. The consideration was transferred and the relevant shares
rebooked on the same day, officially making Fraport AG the majority owner of Aerodrom Ljubljana, d.d.
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Annual Report 2014
Fraport AG announced its takeover intent on 14 October. The takeover bid to purchase all shares of Aerodrom
Ljubljana not held by Fraport AG (at a price of EUR 61.75 per share) was announced on 24 October 2014.
The outcome of the takeover bid was announced on 24 November. Under the takeover Fraport AG acquired
1,860,298 preference no-par-value shares (ticker symbol AELP) and 1,859,872 ordinary no-par-value shares
(ticker symbol AELG), equivalent to 97.99% of Aerodrom Ljubljana, d.d.’s share capital.
Air Serbia, the Serbian flag carrier, marked its first anniversary of services from Ljubljana by doubling its flight
frequency. It has operated two flights a day between Ljubljana and Belgrade since 12 December.
1.2.2 SIGNIFICANT EVENTS AFTER THE END OF 2014
Significant events after the end of 2014 are given in point 5.5.1 of the Financial Report.
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Annual Report 2014
1.3 LETTER FROM THE MANAGEMENT BOARD
Aerodrom Ljubljana performed well last year and enjoyed a resurgence in traffic. Another major theme was the sale of
the company, and all the procedures involved in the sale. The interest expressed by potential buyers and the higherthan-expected price for the shares are confirmation of the stability, quality and sound management at Aerodrom
Ljubljana last year and the previous years.
Aerodrom Ljubljana performed well in 2014, and recorded an increase in traffic. Developments were favourable
compared with 2013, in particular the figures for passenger numbers and cargo tonnage. Total passenger numbers were
up 1.3%, primarily as a result of a rise of 3.1% in passenger numbers in public transport as domestic and foreign airlines
recorded a rise in passenger numbers. The number of aircraft movements was down 5.2% on the previous year,
although the shift in aircraft use towards larger (and heavier) aircraft meant that this decline did not have an adverse
impact on operating revenues. Cargo tonnage was up 6.8% on 2013. According to anna.aero figures, of the other
airports in the region only Zagreb recorded a larger increase in traffic; growth was lower at all the other airports, including
Venice Marco Polo.
Nine airlines operated scheduled services from the airport in 2014, serving a total of 25 scheduled destinations (up from
24 in 2013). The rise in passenger numbers in 2014 was primarily based on a rise in passenger numbers at the domestic
airline, which launched two new routes during the year (Prague and Warsaw). In addition to the domestic airline,
significant rises in passenger numbers were also recorded by Air Serbia and Turkish Airlines. Both airlines also
increased their number of flights from Ljubljana Jože Pučnik Airport. The situation in the Middle East had an adverse
impact on traffic at the airport, as passenger numbers from Israel declined significantly in the summer of 2014. Another
unexpected loss was the suspension of Iran Air’s services, which operates technical flights to Ljubljana for refuelling.
Operating revenues were up 2.5% on the previous year at EUR 32,049 thousand. Operating expenses were up
minimally on the previous year, but were down 4.1% on the forecast. EBIT was up 12.5% on the forecast in the annual
plan at EUR 6,695 thousand, and up 9.2% on 2013.
Net finance income was less favourable in 2014, as a result of an impairment of the investment in Adria Airways Tehnika
d.d. in the amount of EUR 2,736 thousand, which was not forecast in the annual plan. The company is trying to sell Adria
Airways Tehnika. The plan is to complete this process in 2015. Despite the good performance and the increase in
finance income, Aerodrom Ljubljana was unable to fully offset the negative impact of the impairment on the operating
result: pre-tax profit in the accounting period amounted to EUR 4,979 thousand and net profit to EUR 3,594 thousand,
down on the 2013 results and down on the forecasts in the annual plan. Without the impairment of the investment in
Adria Airways Tehnika d.d., pre-tax profit would have been up 27.2% on the 2013 result and up 9.3% on the forecast.
Net profit would have been up 17.4% on the 2013 result and up 1.2% on the forecast.
The sale of the company was a major factor in the work of the staff in 2014. We participated in the procedures within the
extent of our powers, and ensured that they were carried out transparently and with the requisite expertise. Even at the
very outset of the sale process, it was emphasised that Aerodrom Ljubljana would suit a strategic owner that is a large
airport operator with the power, ambition and drive to develop passenger and cargo transport, commercial activities and
the pertaining infrastructure. The new owner, Fraport AG, is certainly this. We feel that in the coming years our
cooperation will allow Ljubljana Airport to develop along the lines of the previously outlined development plan, or even to
surpass it. We believe that under the new owner the airport will continue to modernise, thereby increasing the
competitiveness, connectivity and mobility of the local population. It will thus reinforce its role in the region, and will
promote economic development.
Certain organisational changes lie in wait for Aerodrom Ljubljana in the coming year, when traffic will continue to
increase. Air Serbia added a second daily flight to Belgrade in December 2014. Swiss International Airlines will begin a
daily service to Zurich in March 2015, when Turkish Airlines will increase the number of its weekly flights to Istanbul from
seven to ten. New routes to Stockholm and Berlin will be launched by Adria Airways in the summer timetable.
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Annual Report 2014
The increase in traffic will have to be matched by infrastructural modernisation at the airport. The bottleneck in the
outmoded and insufficiently large passenger terminal remains a major problem whose solution can no longer be
deferred. Groups of experts including representatives of both Fraport AG and Aerodrom Ljubljana are studying potential
solutions to this problem. The optimal solution is expected to be presented soon, together with a timetable.
Bernarda Trebušak
Zmago Skobir
Member of the Management Board
President of the Management Board
Dr Iztok Podbregar
Member of the Management Board
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Annual Report 2014
1.4 SUPERVISORY BOARD REPORT
Operations of the Supervisory Board
The work of the Supervisory Board in 2014 was heavily influenced by facts and circumstances that required extra
engagement and diligence from its members and a focus on Aerodrom Ljubljana’s future performance. Alongside the
ordinary standing supervision of the company’s operations, notable developments were the change in the company’s
majority ownership and the conclusion of a general agreement on mutual relations and the establishment of superficies
with the government.
The make-up of the Supervisory Board was as follows in 2014:
Milan Perović, president of the Supervisory Board;
Peter Grašek, member of the Supervisory Board;
Nina Mauhler, member of the Supervisory Board;
Peter Marn, member of the Supervisory Board;
Tadeja Strupi, member of the Supervisory Board (workers’ representative);
Drago Čotar, deputy-president of the Supervisory Board (workers’ representative).
The Supervisory Board convened 13 regular sessions and six correspondence sessions. Members of the Supervisory
Board acted independently when making their decisions. They were sufficiently prepared for the topics discussed at
sessions, offered constructive suggestions and comments, and adopted decisions within the scope of their authority.
Supervisory Board members acted under the rules on the protection of trade secrets and the rules of conduct in cases of
conflicts of interest. The company’s operations were monitored in accordance with the mandate and competences
defined by the Companies Act (ZGD-1) and outlined in the company’s Articles of Association and the Rules of Procedure
of the Supervisory Board. In discharging their duties the members of the Supervisory Board followed the
recommendations of the Corporate Governance Code, the recommendations of the new Corporate Governance Code
for Capital Assets of the Republic of Slovenia, the recommendations of the Slovenian Directors’ Association and the
recommendations of Slovenska odškodninska družba to the greatest possible extent. They introduced and implemented
best supervisory practices at the company. The Management Board and Supervisory Board speak of the fulfilment of the
recommendations in the Corporate Governance Statement.
In the company’s ordinary operations and in the work of the Supervisory Board focusing on supervising the management
of operations, the members of the Supervisory Board focused most heavily on the following:
the company’s ordinary operations, and in particular the current monitoring of performance and financial
reporting;
the monitoring of marketing activities;
the monitoring of investment activities;
the monitoring of risks;
the monitoring of the performance of companies in which Aerodrom Ljubljana has invested;
the monitoring of the negotiations on and the conclusion of the agreement on mutual relations and the
establishment of superficies;
the monitoring of activities during the change in the company’s majority ownership with particular diligence
devoted to the current and long-term performance of the main public airport in the country and a concern for its
staff;
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Annual Report 2014
close supervision of contracts for which the approval of the Supervisory Board is required under statutory
provisions;
improvements to the internal auditing system and adaptation to standards.
Within the framework of the aforementioned areas of work, particular note should be taken of the following:
In accordance with the Companies Act (ZGD-1) the Supervisory Board discussed and approved the company’s
audited annual report for 2013, the report on the review of the Annual Report for 2013, and the statement of
compliance with the Corporate Governance Code and the Corporate Governance Code for Companies with
State Capital Investments. It also approved the Management Board’s proposal for the use of the distributable
profit. On the basis of a proposal by the audit committee it proposed Deloitte revizija d.o.o. as the auditor for
2014.
The Supervisory Board approved the company’s strategic business plan for the 2014 to 2020 period.
In accordance with the Remuneration of Corporate Managers Act (ZPPOGD) and on the basis of the Act on the
Criteria for Payments of Variable Remuneration to the Management Board, the Supervisory Board assessed
the work of the Management Board in 2013, taking account of qualitative and quantitative criteria, and approved
the payment of the variable remuneration to the Management Board members.
The Supervisory Board enforced the implementation of the recommendations of the Corporate Governance
Code and also the recommendations of the Corporate Governance Code for Capital Assets of the Republic of
Slovenia.
The Supervisory Board put forward a proposal for the development of the internal audit function to a higher
level, was briefed on the internal auditor’s report on internal audits conducted in 2013, the plan of internal audits
in 2014 and a report on the work undertaken in the first half of 2014, and approved the internal audit action plan
for 2015.
The Supervisory Board considered the audit committee’s recommendations with regard to risk management
and the creation of a risk register, and ensured their implementation.
The Supervisory Board appointed an investment committee to regularly monitor the creation and
implementation of the investment plan.
The Supervisory Board regularly monitored the company’s performance and discussed the quarterly reports on
its interim performance. Based on the report on the company’s performance in the first quarter, the unaudited
interim financial statements for the first two quarters and the report on the company’s performance in the first
three quarters, the Supervisory Board monitored the achievement of objectives for 2014. It focused particular
attention on cost optimisation and supported the Management Board’s efforts in this direction. It also supported
and encouraged the Management Board in their activities aimed at attracting new airlines.
The Supervisory Board actively monitored the performance of Adria Airways Tehnika, d.d., in which Aerodrom
Ljubljana, d.d. holds a participating interest of 47.67%, and Aerodrom Portorož, d.o.o., in which it holds a
participating interest of 30.46%.
The Supervisory Board conducted a self-assessment of its work in accordance with good corporate practice.
The company’s Supervisory Board is composed so that it has all the necessary professional competences and skills for
effectively supervising the company’s operations. The Supervisory Board is made up of people with years of experience
in aviation, finance and financial consulting, management and legal affairs. The Supervisory Board has both theoretical
and practical competences in the different fields. The contribution of workers’ representatives is also very valuable, as
their experience and knowledge of the industry and the company enables them to contribute to the effective monitoring
of operations.
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Annual Report 2014
The Supervisory Board finds that in the given circumstances the Management Board’s reaction and response to the
economic situation and to the shareholders’ expressed intentions was fit and proper, and that it managed the company
successfully.
Cooperation with the Management Board
The Supervisory Board worked actively and constructively with the Management Board throughout the year. Members of
the Supervisory Board received professionally drafted materials for sessions on time. All requested and necessary
reports, information, and data were made available to members and were further explained by the Management Board
where necessary at Supervisory Board sessions, enabling the members of the Supervisory Board to monitor and
supervise the company’s operations in a responsible manner and to make informed decisions. In its reports, the
Management Board presented the most important economic categories in great detail, and ensured that they were
sufficiently clear and comparable with previous periods. This enabled the Supervisory Board to continually monitor the
company’s performance and to successfully perform its supervisory function.
The Supervisory Board assessed the work of the Management Board as successful.
Supervisory Board committees
Three committees operated under the aegis of the Supervisory Board in 2014:
The appointments and HR committee met once, and had three members: Milan Perović (chair), Peter Marn
(member) and Tadeja Strupi (member). It reviewed the realisation of the Management Board’s work plans, and
put forward a proposal for the performance-related remuneration for 2013.
The audit committee met five times, and had four members (three Supervisory Board members in Peter Grašek
[chair], Nina Mauhler and Drago Čotar, and one external member, Barbara Nose). It reviewed the audited
annual report for 2013, and proposed the appointment of the external auditor for the 2014 financial year on the
basis of a selection procedure. It was briefed on the company’s interim report for the first three quarters of
2014, and the performance estimation for the remainder of 2014. It regularly monitored the functioning of
internal auditing, and was briefed on the internal audit work plan for the 2014 to 2016 period and the report on
internal audit work in the second half of 2013 and in 2014. It was also briefed on changes to the internal audit
charter, its own rules of procedure, and the rules of procedure of the Supervisory Board. It reviewed the report
on risk management at the company. It also monitored the operations and the sale of Adria Airways Tehnika
d.d., and was briefed on the management of Aerodrom Ljubljana’s financial assets.
The investment committee met three times, and had three members: Peter Marn (chair), Peter Grašek and Nina
Mauhler. The committee approved a revised plan of investments in infrastructure and equipment for 2014, and
monitored the investments in progress. It was briefed on an internal audit report on the implementation of the
procedure to purchase a fire-fighting vehicle, a report on the implementation of the procedure to purchase
Hangar 2, the workshops in Hangar 1 and the apron in front of Hangar 2 from Adria Airways, and the public
contract for the renovation of the airport apron and the construction of the second phase of the airport perimeter
road.
The Supervisory Board’s position on the 2014 audit report
The Supervisory Board session where members discussed the company’s annual report was also attended by an auditor
from Deloitte revizija d.o.o., which audited the company’s 2014 financial statements. The Supervisory Board was briefed
on the independent auditor’s report and found that an unqualified opinion was expressed. The Supervisory Board finds
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Annual Report 2014
that the auditor performed the audit in accordance with the law and auditing rules. The Supervisory Board did not have
any dissenting comments on the independent auditor’s report.
Approval of the 2014 annual report and proposal on the use of distributable profit
The Management Board submitted the company’s annual report with the audit report to the Supervisory Board for review
within the legally prescribed deadline. The Supervisory Board’s audit committee reviewed the annual report and the audit
report in detail, and gave its opinions and positions. On the basis of the continuous monitoring of the company’s
operations and the detailed review of the annual report, the Supervisory Board finds that the 2014 report was compiled in
a clear and transparent manner, and that it presents a true and fair picture of the company’s assets, liabilities, financial
position, profit and loss, and comprehensive income. The business report includes a fair presentation of the development
and performance of the company’s business and its financial position, including a description of the principal types of
risks to which Aerodrom Ljubljana, d.d. is exposed. The annual report was prepared in line with provisions of the
Companies Act and the applicable international accounting standards. Following the review of the company’s 2014
annual report, the Supervisory Board had no dissenting comments on the annual report and adopted it unanimously at
its 22th regular session held on 3 March 2015.
The Supervisory Board approved the Management Board’s proposal that the distributable profit in the amount of EUR
8,621,085 remain undistributed.
Proposal to the general meeting to confer official approval upon the Management Board and the Supervisory
Board
Taking into account the above and pursuant to Article 294 of the Companies Act, the Supervisory Board proposes that
the general meeting confer official approval upon the Management Board and the Supervisory Board for their work in
2014.
Milan Perović
President of the Supervisory Board
Zg. Brnik, 3 March 2015
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Annual Report 2014
1.5 PRESENTATION OF AERODROM LJUBLJANA, D.D.
1.5.1 SIGNIFICANT INFORMATION
Firm:
Aerodrom Ljubljana, d.d.
Zg. Brnik 130a, 4210 Brnik-aerodrom, Slovenia
Registered office:
Phone: +386 (0)4 206 10 00, Fax: +386 (0)4 202 12 20
email: [email protected], http://www.lju-airport.si
Activity code:
52.230 – other auxiliary activities in air transport
Size:
large company according to the Companies Act
President of the Management Board:
Zmago Skobir
Members of the Management Board:
Bernarda Trebušak, Dr Iztok Podbregar
President of the Supervisory Board:
Milan Perović
Number and date of entry of conversion into
a public limited company in the Companies 96/01184, 28 January 1997
Register:
Registration number:
5142768000
VAT ID no.:
SI12574856
Share capital as at 31 December 2014:
EUR 15,842,626
Total number of shares as at
31 December 2014:
3,796,527 no-par value shares, of which 1,936,229 shares are ordinary
freely transferable no-par value shares and 1,860,298 shares are
participating preference no-par value shares with limited voting rights
Quotation of ordinary no-par value shares:
Ljubljana Stock Exchange, standard market (since 8 October 1997)
Designation of ordinary no-par value shares:
AELG
Transaction accounts:
Financial year:
Abanka d.d.
05100-8013262220
Nova Ljubljanska banka, d.d.
02921-0014174945
calendar year
Number of employees as at 31 December
402
2014:
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Annual Report 2014
1.5.2 ACTIVITIES OF THE COMPANY
Our basic lines of business comprise:
management and operation of the airport;
providing ground handling services for aircraft, passengers and cargo;
commercial services.
1.5.3 MISSION, VISION AND STRATEGIC ORIENTATION
Mission statement
Our mission is to ensure efficient and safe operation of Slovenia’s gateway, provide competitive and high-quality
services to our users, customer care, and to foster a beneficial and pleasant business environment for our partners and
all stakeholders.
Vision
Our vision is to become a competitive point of entry to the Alpe-Adria region and the first choice for passengers, airlines
and other users in the region, as well as to contribute to the sustainable development and progress of the company, the
state and its inhabitants.
Strategic objectives of the company
To accomplish its mission and vision, Aerodrom Ljubljana d.d. has set the following strategic objectives for the 2014 to
2020 period:
increasing traffic in terms of passengers, aircraft movements and cargo;
increasing revenue, particularly from commercial services;
developing human resources and encouraging innovation;
ensuring the requisite investment in critical and other infrastructure and equipment to allow for further
development in traffic.
1.5.4 ORGANISATION
The company is led by a three-member Management Board. Performance of the company’s core activity is organised
within five sectors: ground handling and operations, aero-engineering, a financial accounting division, a commercial
division and a general division. Sectors are managed by directors, while certain sectors are divided further into
operational departments. In addition to the advisors and other professionals assembled in the office of the Management
Board, the Management Board is supported in its activities by the internal auditor and the security and safety
department.
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1.5.5 DATA ON COMPANIES UNDER THE MAJORITY OWNERSHIP OF AERODROM LJUBLJANA, D.D.
Company
Aerodrom Portorož, d.o.o.
Adria Airways Tehnika, d.d.
Address
Sečovlje 19, Sečovlje
Zg. Brnik 130 h, Brnik-aerodrom
Ownership interest
in %
30.46
47.67
Book value of the investment
in thousand euros
31.12.2014
31.12.2013
0
0
411
3,147
* Investment stood at EUR 1,251,878 in nominal terms, and an adjustment for the entire amount was created in 2009.
** Investment stood at EUR 6,994,154 in nominal terms. The investment was impaired in the amount of EUR 1,654 thousand in 2010, EUR 2,193 thousand in
2011 and EUR 2,736 thousand in 2014.
For more about investments in the aforementioned companies, see points 4.3, 5.1.3 and 5.5.2 of the Financial Report.
1.5.6 INTERNATIONAL ACTIVITIES
In 2014 the company continued its activities as a member of various expert groups operating under the aegis of ACI
Europe. The president of the company’s Management Board was still active on the association’s board, which has an
influence on the creation of European aviation policy. The advisor to the Management Board is a member of the
Advisory Group within the framework of the Policy Committee, whose role is drawing up strategic guidelines for the
senior management of ACI Europe, and coordinating and liaising between other committees and working groups. We
remain members of the Aviation Security Committee, which deals with the issue of airport security and proposes new
solutions in this area. We continued our membership in the Regional Airports Forum, an interest group that draws up
proposals for small and medium-sized airports, and in the ACI Communication Group, which brings together
communications experts at European airports. We are also a member of the Leadership and Human Resources Forum,
the Digital Communications Forum and the Digital Communications Group at ACI Europe.
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2 CORPORATE GOVERNANCE STATEMENT
Pursuant to the provisions of the fifth paragraph of Article 70 of the Companies Act (ZGD-1), the Management Board and
Supervisory Board of Aerodrom Ljubljana, d.d. hereby provide the following Corporate Governance Statement for the
period from 1 January 2014 to 31 December 2014.
2.1 STATEMENT OF COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE
By upholding the principles of recommended business practices in management and governance, Aerodrom Ljubljana,
d.d. strives to improve the level of the company's management and governance, the Corporate Governance Code
serving as an important guideline.
Aerodrom Ljubljana, d.d. hereby issues its Statement of Compliance with the Corporate Governance Code, amendments
to which were adopted on 8 December 2009 and entered into force on 1 January 2010. The Code is available in the
Slovenian and English languages on the website of the Ljubljana Stock Exchange at www.ljse.si. The Statement of
Compliance with the Corporate Governance Code is an integral part of the Annual Report for 2014 and is available on
the company’s website at www.lju-airport.si for a period of five years following publication.
In this statement of compliance with the Corporate Governance Code, the company indicates the intended changes to its
future operations. The Management Board and Supervisory Board of Aerodrom Ljubljana, d.d. hereby declare that the
company abides by the Corporate Governance Code for Public Limited Companies (hereinafter: the Code) in its work
and operations, with the exception of the derogations stated below.
Corporate governance framework
Code provision 1: The key goal of a joint-stock company engaged in a revenue-generating business is to maximise the
company’s value. This, as well as the company’s other objectives pursued in the course of its business, such as the
long-term creation of value for shareholders and the social and environmental aspects ensuring a sustainable
development of its business, is stated in the company’s articles of association.
The company does not state the aforementioned objectives specifically in its Articles of Association, but pursues them in
practice throughout its activities, and defines them in detail in the Corporate Governance Policy, which is a published
document.
Relations with shareholders
Code provision 5.7: If the general meeting is to decide on the management remuneration policy, it should adopt it at the
proposal of the Supervisory Board and align it substantively with the current market situation and the situation at the
company. The management remuneration policy should substantively follow the provisions of the Code and should
define:
the amount of non-variable remuneration to members of the Management Board,
the possibility of variable remuneration for members of the Management Board,
criteria used for determining types of variable remuneration,
any potential restrictions with respect to variable remuneration,
the annual dynamics of setting criteria for variable remuneration,
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Annual Report 2014
specification of remuneration given as shares, stock options and other types of financial instruments along with
any restrictions of such remuneration,
the annual assessment of the criteria being fulfilled and of the Supervisory Board’s activities in this area.
The remuneration policy for the Management Board is not decided on by the shareholders, but by the Supervisory
Board, in keeping with its powers, which takes account of the aforementioned code in determining the criteria for the
remuneration policy, and also upholds the valid legislation in this area (the Act Governing the Remuneration of Managers
of Companies with Majority Ownership held by the Republic of Slovenia or Self-Governing Local Communities;
hereinafter: the ZPPOGD). On the basis of the ZPPOGD the Supervisory Board adopted the Rules Defining the Rights of
Members of the Management Board, which were presented to the 15th general meeting. In addition, each year the
Supervisory Board approves qualitative and quantitative criteria for determining the variable portion of the Management
Board’s remuneration. All the explanations required by law are provided to the shareholders at the annual general
meeting when the official approval for the Management Board’s work during the previous financial year is being voted
on, in accordance with the Companies Act (ZGD-1).
On 10 October 2014 a change in the ownership of the majority of the shares in Aerodrom Ljubljana, d.d. was registered:
the shares previously held by the Republic of Slovenia and other companies under government ownership were
transferred to the new owner, Fraport AG Frankfurt Airport Services Worldwide. Under Securities Market Agency ruling
no. 40201-9/2014-10 of 24 November 2014, it was announced on 26 November that the takeover of the company by
Fraport AG Frankfurt Airport Services Worldwide had been successful, and that it had acquired an interest of 97.99% in
the company. In light of the above, the company is no longer bound by the Act Governing the Remuneration of
Managers of Companies with Majority Ownership held by the Republic of Slovenia or Self-Governing Local Communities
(the ZPPOGD).
Transparency of operations
Code provision 20.3: The company lays down rules on trading restrictions, temporal restrictions for trading (closed
trading windows) and ordering members of the company’s bodies as well as related natural persons, legal entities and
other persons with access to inside information to disclose their transactions in the company’s shares and in the shares
of related companies.
Reporting by the members of the Management Board and Supervisory Board regarding trading in the company’s shares
is governed by the Regulation on Information about Major Holdings in accordance with the Financial Instruments Market
Act. The company has no internal act restricting trading in its shares. The company has a list of persons to whom
internal information is accessible.
2.2 CORPORATE GOVERNANCE CODE FOR CAPITAL ASSETS OF THE REPUBLIC OF
SLOVENIA
As a public limited company whose majority shareholder was the Republic of Slovenia, in addition to observing the
Corporate Governance Code for public limited companies, Aerodrom Ljubljana, d.d. was obliged to observe the new
Corporate Governance Code for Capital Assets of the Republic of Slovenia in 2014 until the takeover. Because
Aerodrom Ljubljana, d.d. manages the infrastructure at the main airport in the country, in addition to its basic duty of
acting in the interests of the shareholders it has also observed the recommendations of the aforementioned code, which
in an orderly and transparent manner is raising the level of the actions of public limited companies in which the Republic
of Slovenia (the state) is a shareholder.
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Aerodrom Ljubljana d.d. is hereby issuing its statement of compliance with the Corporate Governance Code for Capital
Assets of the Republic of Slovenia, which was adopted by the Management Board and Supervisory Board of Slovenska
odškodninska družba d.d. on 15 May 2013. The second section of the code (Recommendations 51 to 93) sets out the
expectations of the companies in which the Republic of Slovenia is a shareholder or partner.
The code is published on Slovenska odškodninska družba’s website. The statement of compliance with the Corporate
Governance Code for Capital Assets of the Republic of Slovenia is a constituent part of the Annual Report for 2014, and
will be available on its website (www.lju-airport.si) for five years after its first publication.
The Management Board and the Supervisory Board hereby declare that in its work and operations Aerodrom Ljubljana,
d.d. observes the Corporate Governance Code for Capital Assets of the Republic of Slovenia in the section relating to
public limited companies. In areas regulated differently by the Corporate Governance Code for public limited companies
and the Corporate Governance Code for Capital Assets of the Republic of Slovenia, Aerodrom Ljubljana, d.d. gives
precedence to the former, in order to ensure equality for all shareholders (private shareholders on the one hand, and the
state on the other), given its status as a public limited company whose shares are listed on the stock market.
Any deviations from Corporate Governance Code for Capital Assets of the Republic of Slovenia are cited and explained
below:
Recommendations 63, 64, 65 and 66: Transparency of operations and reporting
In relation to reporting, the company observes the provisions of the Companies Act (ZGD-1; in particular the first
paragraph of Article 130) and the Corporate Governance Code.
Recommendations 74 to 79: Selection of candidates for members of supervisory bodies and formulation of proposals for
a general meeting
The company does not observe the recommendations in full, because the nomination procedure for members of the
Supervisory Board is regulated by its articles of association, but it took the recommendations of the Corporate
Governance Code into account in the general meeting’s preparations for 2014 with regard to the nomination of
candidates for the Supervisory Board. The procedure is substantively identical to that recommended in the code, with a
deviation in that the procedure is not conducted by a nomination committee, but instead by the appointments and HR
committee, with the support of an external advisor.
Recommendation 87: Remuneration of members of a Management Board
The company does not observe the recommendations because it is bound by the restrictions of the ZPPOGD.
On 10 October 2014 a change in the ownership of the majority of the shares in Aerodrom Ljubljana, d.d. was registered:
the shares previously held by the Republic of Slovenia and other companies under government ownership were
transferred to the new owner, Fraport AG Frankfurt Airport Services Worldwide. Under Securities Market Agency ruling
no. 40201-9/2014-10 of 24 November 2014, it was announced on 26 November that the takeover of the company by
Fraport AG Frankfurt Airport Services Worldwide had been successful, and that it had acquired an interest of 97.99% in
the company. In light of the above, the company is no longer bound by the Corporate Governance Code for Capital
Assets of the Republic of Slovenia.
2.3 RECOMMENDATIONS OF THE MANAGER OF INDIRECT AND DIRECT STATE
CAPITAL INVESTMENTS
The company observed the recommendations of Slovenska odškodninska družba adopted on 12 April 2013 and
published on the aforementioned company’s website.
Any deviations from the recommendations of Slovenska odškodninska družba are cited and explained below:
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Annual Report 2014
Recommendation 5: Three-year business planning by a company
The recommendation has been partly taken into account. The company regularly draws up medium-term business plans,
which are also discussed by the Supervisory Board in accordance with the company’s bylaws. Because the company is
a public limited company listed on the stock market, it reports on its operations in accordance with the provisions of the
Companies Act (ZGD-1) concerning public limited companies listed on the stock market, in accordance with the ZTFI
and in accordance with the Corporate Governance Code.
Recommendation 6: Quarterly reporting on the performance of a company
Because the company is a public limited company listed on the stock market, it reports on its operations in accordance
with the provisions of the Companies Act (ZGD-1) concerning public limited companies listed on the stock market, in
accordance with the ZTFI and the provisions of the Corporate Governance Code, the company publishes quarterly, halfyearly and annual reports.
Recommendation 7: Transparency of procedures of making business deals involving company expenditure
The recommendation has been partly taken into account. The company substantively observes the recommendation,
although in accordance with the company’s interests and the provisions of the Companies Act (ZGD-1) concerning the
safeguarding of trade secrets it does not publish details of contracts except where so required from the point of view of
the public procurement system.
Recommendation 11: Achieving quality and excellence in the operations of a company/group
The recommendation has been partly taken into account. The company meets all the requirements of the ISO 9001
standard, and has obtained its quality management certificate. By monitoring user satisfaction, managing the business
processes and managing its documentation, the company is striving to improve its performance in the area of quality,
and is simultaneously reaffirming its commitment to high quality of service, ceaseless improvement and efficiency. The
quality management system is being upgraded by the introduction of the EFQM business excellence model. In the first
phase we conducted a self-assessment of leadership and the staff, and drew up an action plan.
Recommendation 12: General meetings
The recommendation has been partly taken into account. As a public limited company Aerodrom Ljubljana operates in
accordance with the requirements of the Companies Act (ZGD-1) and the ZTFI, for which reason it does not observe
Recommendations 12.7 and 12.10.
Recommendation 13:
The recommendation is not binding for Aerodrom Ljubljana, d.d.
On 10 October 2014 a change in the ownership of the majority of the shares in Aerodrom Ljubljana, d.d. was registered:
the shares previously held by the Republic of Slovenia and other companies under government ownership were
transferred to the new owner, Fraport AG Frankfurt Airport Services Worldwide. Under Securities Market Agency ruling
no. 40201-9/2014-10 of 24 November 2014, it was announced on 26 November that the takeover of the company by
Fraport AG Frankfurt Airport Services Worldwide had been successful, and that it had acquired an interest of 97.99% in
the company. In light of the above, the company is no longer bound by the recommendations of the manager of direct
and indirect capital assets of the Republic of Slovenia.
2.4 MAIN FEATURES OF THE INTERNAL CONTROL SYSTEM AND OF RISK
MANAGEMENT IN RELATION TO THE FINANCIAL REPORTING PROCEDURE
Aerodrom Ljubljana, d.d. has within its operations an extensive mechanism of internal control and risk management in
relation to the financial reporting procedure. The objective of this system of internal controls are alignment with
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applicable laws and regulations, the accuracy, completeness and reliability of financial reporting, a reduction in the risks
relating to the company’s operations, achievement of the company’s strategic objectives, and realisation of the
company’s overall strategy.
Internal controls comprise defined objectives by individual area of the operations, and the risks and the method used to
control them are identified. Risk management is set out in greater detail in point 5 of the Business Report. Appropriate
control procedures for the functioning of internal controls, financial reporting and compliance with the rules have been set
up. Financial reporting is based on a system of recording business events that has built-in internal financial controls,
whose effectiveness is monitored on a continuous basis. A system of reporting on identified risks and procedures has
been designed, and supervision of internal control procedures is carried out.
Internal auditing
In organisational terms, the internal audit department reports directly to the Management Board, and is separate from
other organisational units. Internal auditing has been conducted at the company since 2000. The basic area of operation
comprises the internal control of all business and other risks to which the company is exposed. When assessing whether
internal controls are appropriate and fit for their intended purpose, the permanence and reliability of their functioning are
also examined.
Internal auditing audits specific business processes and procedures that impact the achievement of operating objectives.
Internal auditing proposes improvements to business processes, thus making a significant contribution to increasing the
effectiveness of business operations, the transparency and reliability of information. The internal auditor reports on its
work to the company’s Management and Supervisory Boards.
External auditing
On the basis of a resolution passed at the 19th general meeting on 13 May 2014, the company’s financial statements for
2014 were audited by Deloitte revizija d.o.o., Ljubljana (for the eighth consecutive year).
2.5 INFORMATION PROVIDED UNDER THE SIXTH PARAGRAPH OF ARTICLE 70 OF THE
ZGD-1
As a company obliged to comply with the act governing mergers and acquisitions, Aerodrom Ljubljana, d.d. provides the
information required under the sixth paragraph of Article 70 of the Companies Act (ZGD-1) to reflect the situation as at
the last day of the financial year, along with all required explanatory notes:
Structure of share capital and restrictions on transfer of shares
The company’s share capital is divided into 3,796,527 no-par-value shares issued in dematerialised form and paid up in
full; 49% of them (1,860,298 shares) are preference participating no-par-value shares with restricted voting rights, and
51% (1,936,299 shares) are ordinary freely transferable no-par-value registered shares traded on the Ljubljana Stock
Exchange’s regulated market since 1997 (ticker symbol: AELG).
Under the Articles of Association, the preference participating shares have full voting rights when decisions are being
made on the following:
amendments to the Articles of Association,
an increase or decrease in the share capital,
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Annual Report 2014
the appointment and dismissal of members of the Supervisory Board,
the winding-up of the company or a change in its legal status,
the appointment of an auditor,
conversion of the preference participating shares with restricted voting rights into ordinary registered no-parvalue shares.
A dividend comprising a fixed portion and variable portion pertains to the preference participating no-par-value shares
with restricted voting rights.
Significant direct and indirect holdings of the company’s securities in terms of achieving a qualifying holding as
defined by the Mergers and Acquisitions Act (ZPre-1)
Until 9 October 2014 inclusive, qualifying holdings were held by the following shareholders in the company:
Republic of Slovenia (1,923,853 no-par-value shares, a 50.67% holding in the issuer’s capital, of which 49% or
1,860,298 of the shares are participating preference no-par-value shares with limited voting rights that are not
listed on the stock exchange),
Kapitalska družba, d.d. (279,561 no-par value shares, a 7.36% holding in the issuer’s capital), and
Slovenska odškodninska družba, d.d. (258,958 no-par value shares, a 6.82% holding in the issuer’s capital).
On 10 October 2014 a change in the ownership of the majority of the shares in Aerodrom Ljubljana, d.d. was registered:
the shares previously held by the Republic of Slovenia and other companies (a total of 75.5% of all shares) were
transferred to the new owner, Fraport AG Frankfurt Airport Services Worldwide.
Under Securities Market Agency ruling no. 40201-9/2014-10 of 24 November 2014, it was announced on 26 November
that the takeover of the company by Fraport AG Frankfurt Airport Services Worldwide had been successful, and that it
had acquired an interest of 97.99% in the company.
Holders of securities ensuring special controlling rights
The company does not have securities that would provide special controlling rights.
Restrictions of voting rights under Articles of Association
Preference participating no-par value shares with restricted voting rights have full voting rights in instances stipulated by
law and by the Articles of Association. Pursuant to the Articles of Association, preference participating no-par value
shares have full voting rights when decisions are being made on the following: amendments to the Articles of
Association, an increase or reduction in the company’s share capital, the appointment and dismissal of members of the
Supervisory Board, the winding up of the company and a change in its status, the appointment of an auditor, and the
conversion of preference participating no-par value shares with restricted voting rights into registered ordinary no-par
value shares.
Restrictions of voting rights in accordance with Securities Market Agency ruling of 13 December 2012
Pursuant to a ruling by the Securities Market Agency, the following have been prohibited from exercising their voting
rights at Aerodrom Ljubljana, d.d. for reason of their concerted action and the acquisition and surpassing of the takeover
threshold in the target company Aerodrom Ljubljana, d.d.:
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Annual Report 2014
Zavarovalnica Triglav d.d., of Miklošičeva cesta 19, Ljubljana, with 161,909 shares with the AELG ticker symbol
(151,085 AELG shares are held directly by Zavarovalnica Triglav, and 10,824 are held by Zavarovalnica Triglav
– kritni sklad ž.z.), an overall holding of 4.2647% in Aerodrom Ljubljana, d.d.,
Slovenska odškodninska družba d.d., of Mala ulica 5, Ljubljana, with 258,958 AELG shares, an overall holding
of 6.8209% in Aerodrom Ljubljana, d.d.,
Kapitalska družba pokojninskega in invalidskega zavarovanja d.d., of Dunajska cesta 119, Ljubljana, with
279,561 AELG shares, an overall holding of 7.3636% in Aerodrom Ljubljana, d.d.,
the Republic of Slovenia, of Gregorčičeva ulica 20, Ljubljana, with 63,555 AELG shares and 1,860,298 shares
with the AELP ticker symbol, an overall holding of 50.6740% in Aerodrom Ljubljana, d.d.
On 10 October 2014 a change in the ownership of the majority of the shares in Aerodrom Ljubljana, d.d. was registered:
the shares previously held by the Republic of Slovenia and other companies under government ownership were
transferred to the new owner, Fraport AG Frankfurt Airport Services Worldwide. Under the transfer of shares the new
owner obtained all the voting rights attached to the aforementioned shares in accordance with legislation and the
company’s Articles of Association.
Rules of the company on the appointment and replacement of members of management or supervisory bodies,
and on amendments to the Articles of Association
The company’s rules on the appointment and replacement of members of the management and supervisory bodies and
on changes of status are defined in the Articles of Association.
The company's Management Board comprises a maximum of three members: the president of the Management Board
(director) and two members, serving as deputy directors responsible for specific areas. The members and president of
the Management Board are appointed by the Supervisory Board for a term of five years, with the possibility of
reappointment. The Supervisory Board may dismiss the president and other members of the Management Board if they
commit a serious breach of their duties, if they no longer have capacity to contract, if they receive a vote of no
confidence from the general meeting (unless the vote of no confidence is clearly unsubstantiated), or on any other
economic/commercial grounds (significant changes in shareholdings, reorganisation, launch of new services, major
changes in lines of business, etc.) At least two-thirds of the members of the Supervisory Board must be in attendance for
it to be quorate when appointing or dismissing the president or other members of the Management Board.
The Supervisory Board comprises six members. Four members are elected by shareholders, while two members are
appointed by the works council pursuant to the Worker Participation in Management Act. In conjunction with the
appointments and HR committee, the Supervisory Board is conducting a procedure to select candidates for joining the
Supervisory Board, and is formulating and then applying the criteria that the candidates must meet. Shareholder
representatives, who are elected for a term of four years by the general meeting of shareholders with an ordinary
majority of votes, are proposed by the Republic of Slovenia (two members), Kapitalska družba, d.d. and Slovenska
odškodninska družba, d.d. (together one member) and other shareholders (one member). The members of the
Supervisory Board elect a president and deputy-president from among themselves. Members of the Supervisory Board
may be dismissed before their term of office ends by a three-quarters majority of votes cast at the general meeting of
shareholders.
A resolution by the general meeting of shareholders is required for any amendment to the Articles of Association.
Proposed amendments to the Articles of Association must be published. Should the proposal not be published, the place
where the wording of the proposed amendments is available must be announced publicly. Unless the law stipulates
otherwise, a majority of the represented share capital is required for a general meeting of shareholders resolution on an
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Annual Report 2014
amendment to the Articles of Association to be valid, when at least half the share capital is represented when the
resolution is voted upon.
Powers of members of management, in particular powers to issue or buy treasury shares
The powers of members of management are laid down in the company’s Articles of Association, where no special rules
to issue or buy treasury shares are specified.
The Management Board does not have the explicit power to increase the authorised capital or the power to acquire
treasury shares.
2.6 GENERAL MEETING OF SHAREHOLDERS
Shareholders of the company exercise their rights deriving from ownership of the company at the general meeting of
shareholders. The general meeting of shareholders is the highest body within the company and operates in accordance
with the provisions of the Articles of Association and the Companies Act. The Articles of Association are published on the
company’s website at www.lju-airport.si.
The general meeting is convened by the Management Board, as set out by the law and by the Articles of Association,
when it is in the company’s benefit to do so. The general meeting of shareholders can also be convened by the
company's Management Board in the instances set out in legislation and the Articles of Association, and whenever it
benefits the company. It can also be convened by the Supervisory Board. The general meeting is convened at the
written request of shareholders together representing at least one-twentieth of the company’s share capital. An agenda,
and a proposed resolution for each proposed item of the agenda to be decided upon by the general meeting or an
explanation of the agenda item if the general meeting is not to decide on the item in question must be enclosed in the
request in written form by the shareholder requesting the convening of the general meeting.
The announcement to convene the general meeting with the content required by regulations must be published at least
30 days before the general meeting first convenes on the company’s website, on SEOnet, the electronic information
system of Ljubljana Stock Exchange, and on Info hramba, the central controlled information storage system. The
provision of the previous sentence notwithstanding, the general meeting may be convened with the content required by
law by means of a registered letter to all shareholders, provided that their names and addresses can be determined from
the valid register of shareholders. In this instance the day that the letter is sent is deemed the day of the announcement
to convene the general meeting.
After the announcement to convene the general meeting, shareholders whose holdings together represent at least onetwentieth of the share capital may request in writing that an additional item be included on the agenda. The written
request must include the proposed resolution to be decided upon by the general meeting or an explanation of the
agenda item if the general meeting is not to decide on the item in question. The shareholders must lodge the request
with the company no more than seven days after the announcement to convene the general meeting, and the
Management Board must publish it without delay. An additional item on the agenda may only be discussed at the
general meeting if it was published at least 14 days prior to the general meeting; otherwise it is discussed at the next
general meeting.
The Management Board must notify financial institutions, shareholder associations, other entities set out by law, and
shareholders whose holding in the company’s total share capital is at least 5% of the convening of the general meeting,
amendments to the agenda, and shareholder proposals regarding items on the agenda or voting proposals, together with
justifications and other information related to the proposals, in writing (by registered post, with a receipt) at least 14 days
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Annual Report 2014
before the general meeting first convenes. Where the company has published this information on its website, the written
notification may merely cite the web page on which the information is available.
General meetings may be attended and voting rights exercised only by shareholders who have registered their
attendance with the company by the end of the fourth day before the general meeting, and are entered as shareholders
in the central register of book-entry securities at the end of the fourth day before the general meeting first convenes.
Shareholder proxies may exercise the right to attend and voting rights on the basis of a written proxy agreement, which
must be submitted to the Management Board by shareholders no later than the day of the general meeting and remains
in safekeeping at the company.
The company actively encourages shareholders to exercise their rights by organising the collection of proxies, on the
basis of which shareholders can also exercise their right to vote without attending the general meeting in person,
although no member of the Management Board or Supervisory Board may act as a proxy.
Shareholders may use electronic means to nominate their proxies at the general meeting. The form for a voting proxy
agreement is available on the company’s website. The proxy agreement may be emailed to the company at an address
designated by the company each time that a general meeting is convened, in scanned form as an attachment, and must
contain the handwritten signature of any private individual using the agreement. The company has the right to verify the
identity of a shareholder or proxy submitting the proxy agreement by email, and the authenticity of the signature.
Shareholders may also submit a request for an additional item on the agenda and proposals for resolutions relating to
items on the agenda, including voting proposals, in the same manner and form. The company has the right to verify the
identity of a shareholder or proxy submitting a request or proposal by email, and the authenticity of the signature.
In accordance with the company’s Articles of Association, holders of ordinary no-par value shares vote on the use of
distributable profit and the conferral of official approval on the Management Board and Supervisory Board. Holders of
preference participating and ordinary no-par value shares vote on the appointment of the auditor and on amendments to
the Articles of Association. Each no-par value share entitles its holder to one vote. A simple majority of the shareholder
votes cast is required to pass general meeting resolutions, unless a larger majority or other requirements are set out by
law.
At the 19th general meeting of shareholders held on 13 May 2014: shareholders were briefed on the Supervisory Board's
report on the verification of the annual report for the 2013 financial year, voted to confer official approval on the
Management Board and Supervisory Board for their work in the previous financial year, decided on the use of the
distributable profit for the 2013 financial year and appointed an auditor for the auditing of the company’s operations and
financial statements for the 2014 financial year.
2.7 COMPOSITION AND FUNCTIONING OF MANAGEMENT AND SUPERVISORY
BODIES
The management and governance of Aerodrom Ljubljana, d.d. is based on legal provisions, the provisions of the
company’s Articles of Association and the corporate governance policy. It proceeds according to a two-tier system,
where the company is managed by the Management Board and its operations are supervised by the Supervisory Board.
2.7.1 SUPERVISORY BOARD
The competences of the Supervisory Board are laid down in the Articles of Association. The Supervisory Board’s method
of work is regulated by the Rules of Procedure of the Supervisory Board, which are published on the company’s website.
The activities and method of operation of the Supervisory Board in 2014 are detailed in the Report on the Work of the
Supervisory Board (point 1.4 of the Business Report).
24
Annual Report 2014
Composition of the Supervisory Board
The six-person Supervisory Board (whose four-year term of office began on 9 July 2013) comprises:
Milan Perović, president of the Supervisory Board;
Peter Grašek, member of the Supervisory Board;
Nina Mauhler, member of the Supervisory Board;
Peter Marn, member of the Supervisory Board;
Tadeja Strupi, member of the Supervisory Board (workers’ representative);
Drago Čotar, deputy-president of the Supervisory Board (workers’ representative).
Supervisory Board committees
Three committees operated under the aegis of the Supervisory Board in 2014 (the appointments and HR committee, the
audit committee and the investment committee). Their make-up and work are presented in point 1.4 of the Business
Report.
2.7.2 MANAGEMENT BOARD
In accordance with the Articles of Association, the Management Board comprises a maximum of three members, one of
which is the president of the Management Board. Members of the Management Board are appointed by the Supervisory
Board for a period of five years with the possibility of reappointment. The current Management Board comprises three
members. The president of the Management Board, Zmago Skobir, began a five-year term of office on 5 July 2007. The
other members of the Management Board, Bernarda Trebušak and Dr Iztok Podbregar, began their terms on 1
September 2010 and 1 August 2013 respectively. On 24 August 2011 Mr Skobir was awarded a new five-year term as
president of the Management Board, which began on 5 July 2012.
The Management Board manages Aerodrom Ljubljana for the company’s benefit, and is independent and liable for its
actions, except in the cases set out in the Articles of Association that require the Supervisory Board’s approval. The
president of the Management Board represents the company in legal and public matters, together with the other member
of the Management Board. The other member of the Management Board represents the company only in conjunction
with the president of the Management Board. The Management Board is free to conclude transactions up to EUR 1
million in value; for larger transactions it requires prior approval from the Supervisory Board.
In 2014 the Management Board discharged its responsibilities in accordance with the Rules of Procedure of the
Management Board, reported regularly to the Supervisory Board in accordance with the Articles of Association and the
Rules of Procedure of the Supervisory Board, and discharged its obligations to shareholders as defined in the
Companies Act. The Management Board also worked closely with the works council and the company’s representative
trade union in accordance with legal provisions.
25
Annual Report 2014
3 COMPANY OPERATIONS IN 2014 AND PLANS FOR 2015
3.1 ECONOMIC CONDITIONS
In line with the European Commission’s winter forecasts, there was a weak economic recovery in 2014: GDP increased
by 0.8% in the euro area, and by 1.3% across the EU. In line with the aforementioned forecast, 2015 is expected to see
renewed economic growth in all EU countries for the first time since 2007 (1.7% across the EU, 1.3% in the euro area),
although economic performance will continue to vary inside the EU. The positive factors in economic growth are the fall
in oil prices, the fall in the euro, the increase in money supply announced by the ECB and the European Commission’s
investment plan for Europe. The factors acting to slow economic growth are the slowdown in activity in certain key
trading partners of the euro area, the weak investment environment and high unemployment. The negative risks to
growth remain geopolitical tensions, renewed volatility on the financial markets in the context of contrasting monetary
policy in major economies, and the incomplete execution of structural reforms.
Inflation in 2014 stood at 0.6% in the EU and 0.4% in the euro area. It is expected to remain low in 2015, primarily as a
result of low commodity prices (0.2% in the EU, -0.1% in the euro area). The unemployment rate is forecast to fall to
9.8% in the EU and to 11.2% in the euro area. General government deficits will continue to narrow (to 2.6% in the EU
and 2.2% in the euro area), while the ratio of debt to GDP will also fall (to 88.3% in the EU and 94.4% in the euro area).
There was an economic recovery in Slovenia in 2014 (according to the IMAD forecasts, GDP is expected to have risen
by 2.5%, and to rise by 2% in 2015). The European Commission forecast for Slovenia is slightly different: growth is
forecast at 2.6% in 2014 and 1.8% in 2015. The main factors in the GDP growth in 2014 were exports and a rise in
public investment in connection with the increased disbursement of EU funds. Exports remain the main engine of
economic growth in 2015, when growth in foreign demand is expected to strengthen slightly. The forecasts for the terms
of trade (the ratio of import prices to export prices) have also improved, in light of the fall in average oil prices and
commodity prices. Government consumption is expected to have declined in 2014 (by 1%), and to decline again in 2015
(by 0.6%). Private consumption increased slightly in 2014 (by 0.7%), and the trend is expected to continue in 2015
(growth of 1.1%) in line with the forecast increase in disposable income.
Inflation in 2014 stood at 0.2%. The largest contribution to headline inflation came from rises in prices of health
insurance, package holidays, tobacco products, sewerage charges and sports equipment. By contrast, the largest
factors in reducing headline inflation were falls in energy prices, food prices and prices of consumer durables. Inflation is
forecast at zero in 2015, primarily as a result of falls in oil prices and partly as a result of other commodity prices.
The registered unemployment rate stood at 13.1% in 2014 according to the IMAD estimate, the same as the previous
year. Unemployment will fall only slightly in 2015 (to 12.6%) as employment rises, partly as a result of a decline in the
funding available for active employment policy measures.
Bank lending activity has continued to decline, with contractions in lending to corporates, non-monetary financial
institutions and households, although lending to the government sector is increasing. Corporates and non-monetary
financial institutions are continuing to deleverage, while the trend of deleveraging slowed slightly in the household sector.
According to ACI Europe figures, passenger numbers at European airports increased by 5.4% overall in 2014. The 4.9%
increase at airports in the EU was less than that at airports outside the EU (Serbia, Iceland, Macedonia, Georgia and
Turkey), where the figure reached 7.3%. Cargo tonnage at European airports increased by 3.6% (by 3.6% at EU
airports, and by 3.3% at airports outside the EU). The increase of 2.6% in the number of aircraft movements is an
indicator of the increase in airline capacity, particularly at airports outside the EU (where the increase was 5.6%,
compared with 1.5% at EU airports).
Passenger transport in the EU strongly exceeded economic performance in 2014, which is a reflection of the robustness
of demand for air transport and the reliance of households and firms on air connectivity. Geopolitical tensions, which
26
Annual Report 2014
were reflected in a decline in traffic in Ukraine and Russia, also had a major impact on passenger transport. There was
also a notable continuation of the changes in the structure of the aviation market. The majority of traffic growth came
from low-cost airlines, which increased their market share. Airlines operating at airports outside the EU were also a
factor in the increase in capacity, which included purchases of European airlines.
3.2 MARKET POSITION AND MARKETING ACTIVITIES
Market position
Our national airport is classed as small in terms of traffic, and covers Slovenia, the southern part of Austria, the northeastern part of Italy and part of Croatia, with approximately four million inhabitants in the aforementioned region. This
region is the company’s target market, and covers a 250 km radius from the airport.
Passengers travelling on business, for leisure or personal reasons all choose Ljubljana Airport and the airlines at the
airport. Airports’ marketing activities are important, but they are not the only factor in growing passenger numbers, airline
presence and cargo tonnage. In light of the above, and given the small size of the Slovenian market and individual
market segments and the diverse travel needs of passengers, we focus on all passenger segments.
Marketing activities in 2014
The improvement in the economic situation and the discernible positive developments in air transport created an
economic environment in which we succeeded in increasing passenger numbers relative to 2013, and carrying increased
cargo tonnage at the airport. It is positive that the rise in passenger numbers was based on growth at the domestic
airline and at the foreign airlines. A major factor in the rise in passenger numbers at the domestic airline was the launch
of two new routes: Adria Airways operated services to Warsaw and Prague in the summer timetable. The two routes met
expectations with good load factors. The rise in passenger numbers on the foreign market was largely based on the
launch of services by Air Serbia, which significantly increased its passenger numbers between Ljubljana and Belgrade in
2014 as load factors remained good. A further boost to the good results on this route came in December with an extra
daily flight and a significant increase in available capacity.
Alongside the activities aimed at airlines, we also focused on strengthening our market position among airports in the
region and on making our competitive advantages known. Several advertising campaigns were conducted to this end in
conjunction with airlines in the cross-border markets of Italy and Austria. Our advertising used digital media in particular,
and all the company’s own resources and channels were utilised (its website, Facebook page, online news). These
advertising campaigns raised awareness of the accessibility of Ljubljana Airport and its good travel opportunities. We
expanded our cooperation with road transport providers, who play a vital role in linking the airport with foreign markets in
the region.
In the Slovenian market our marketing activities also utilised established communication channels such as direct mail, a
personal approach to partners, and advertising in the media and in tour operators’ brochures, and online advertising. We
also address target customers via the media communications that we manage ourselves. The airport website offers
passengers and visitors a reliable user experience, good transparency, handy content, and a modern image. We also
offer content tailored to users of smart devices and mobiles, who constitute an increasing share of business and leisure
passengers.
In 2014 we created a strong online community on the company’s Facebook page, which allows it to connect with users
on a more personal level and to draw them into the airport’s services. On this platform we aim to establish ourselves
above all as a user-friendly airport that provides high-quality services to passengers and achieves a level of service
comparable to its competitors.
27
Annual Report 2014
The flyljubljana loyalty programme provided price-sensitive passengers with added value that encourages them to return
to Ljubljana Jože Pučnik Airport more often. The benefits enjoyed by members of the loyalty programme included
advantages in parking and airport shopping, special treatment by airlines providing connections between Ljubljana
Airport and the rest of the world, special offers by external partners with a good lifestyle match, and unforgettable
experiences at the airport.
A significant amount of our activity in 2014 was focused on commercial services, which are an increasingly important
element of revenue generation and the safeguarding of the airport’s future development. Our rent pricing policy remained
the same, tailored to the location, and ensured good occupancy of our commercial premises. In conjunction with the
tenants of our retail and catering premises, we continue to tailor our services to the needs of the passengers, which has
been positively reflected in an increase in rental income for retail and catering premises. We also carried out several
promotions in conjunction with our partners, which improved the shopping experience and presented the airport as an
interesting shopping destination in its own right.
The economic growth seen in Slovenia in 2014 has not yet been reflected in a reversal in the trend and an increase in
expenditure on advertising. In 2014 we successfully compensated for the loss of long-term contracts with short-term
campaigns. In so doing we surpassed the previous year’s results and also the targets.
The increase in cargo tonnage was positively reflected in commercial revenue from warehousing, where our active
marketing policy for warehousing services showed off our competitive advantages, allowing us to surpass previous
results. Success on the market was secured thanks to our incentivising pricing policy, the quality of our warehousing
services and our good partnership with freight forwarding companies.
Plans for 2015
We remain committed to meeting the following targets in the field of marketing:
to increase traffic;
to increase the market share of foreign airlines at the airport;
to develop the regional hub;
to increase the number of passengers from neighbouring countries and reduce the outflow of local passengers
to neighbouring airports;
to increase cargo tonnage.
In line with these targets we will continue our marketing activities to increase traffic at the airport in 2015. By working
together on marketing we aim to encourage airlines in launching new routes and increasing passenger numbers at the
airport. In 2015 we will continue developing the airport as a regional hub for transfer traffic.
We will focus marketing activities on raising our profile and strengthening our competitive position in the region. In
conjunction with airlines we will design marketing activities for the domestic market and the markets of neighbouring
countries (Italy, Austria and Croatia). We intend to maintain the scope of our market communications via local media and
the internet, and will make greater use of the innovative marketing channels that the company operates (online social
networks). Much of the marketing of our services will still be undertaken via direct contacts with existing and potential
business partners.
We will also continue our marketing activities focusing on foreign airlines, with whom we are aiming to increase the
number of flights and passengers in 2015. We are planning to bring Swiss International Air Lines to the airport in 2015,
who will upgrade the services between Ljubljana and Zurich to daily flights, connecting to a wide network of
intercontinental services. A rise in the number of flights is also planned at Turkish Airlines, which will fly between
Ljubljana and Istanbul ten times a week (previously seven times a week). The launch of a Berlin service is planned for
28
Annual Report 2014
the summer timetable. The German capital Berlin will be served three times a week by Adria Airways. We will also work
with tour operators to support holiday travel, and by advertising in their brochures we will strengthen the synergies to
raise the profile of Ljubljana Airport.
We will also continue our marketing activities aimed at increasing cargo tonnage at the airport and developing a local
hub for express mail.
With regard to commercial services we will continue our existing sales strategy and pricing policy, tailored to the location
and the services that we provide. With the improvement in the economic situation in the environment where the company
operates, and a proactive approach, we will continue meeting our objectives and our development targets.
3.3 TRANSPORT
Total passenger numbers (1,338,619 passengers) were up 1.3% on figures for 2013, primarily due to a rise in the
number of passengers using public transport (3.1%). A growth in the number of passengers using public transport was
recorded by both domestic as well as foreign carriers. The total number of aircraft movements (31,405 aircraft
movements) was 5.2% lower than in 2013. There was significant growth in the cargo segment, which was up 6.8% on
figures for 2013 (at 18,983 tonnes).
The growth in passenger numbers in 2014 was mainly a result of the increased number of passengers using the
domestic carrier, which expanded to two new destinations in 2014 (Prague and Warsaw). There was also a large rise in
passenger numbers at Air Serbia and Turkish Airlines, both airlines having increased their number of flights at the
airport.
Realisation
Plan
P14
Index
R14/R13
Proportion (in %)
1.-12./14
1.-12./13
R14/P14
1.-12./14
1.-12./13
P14
1,338,619
1,307,379
906,966
400,413
3,200
28,040
1,321,100
1,267,479
884,330
383,149
3,280
50,341
1,377,143
1,327,702
905,240
422,462
2,996
46,445
101.3
103.1
102.6
104.5
97.6
55.7
97.2
98.5
100.2
94.8
106.8
60.4
100.0
97.7
67.8
29.9
0.2
2.1
100.0
95.9
66.9
29.0
0.2
3.8
100.0
96.4
65.7
30.7
0.2
3.4
1
1.1
1.1.1
1.1.2
1.2
1.3
NO OF PASSENGERS
PUBLIC TRANSPORT
Domestic carriers
Foreign carriers
GENERAL AVIATION
OTHER
2
2.1
2.1.1
2.1.2
2.2
2.3
AIRCRAFT MOVEMENTS
PUBLIC TRANSPORT
Domestic carriers
Foreign carriers
GENERAL AVIATION
OTHER
31,405
22,361
16,687
5,674
7,789
1,255
33,111
23,162
17,535
5,627
8,245
1,704
32,556
22,824
16,448
6,376
8,107
1,625
94.8
96.5
95.2
100.8
94.5
73.7
96.5
98.0
101.5
89.0
96.1
77.2
100.0
71.2
53.1
18.1
24.8
4.0
100.0
70.0
53.0
17.0
24.9
5.1
100.0
70.1
50.5
19.6
24.9
5.0
3
3.1
3.2
3.3
3.4
CARGO TRANSPORT (in tonnes)
Aircraft
Truck
Mail
Other
18,983
8,774
8,936
1,046
227
17,777
8,352
8,179
911
335
17,697
8,238
8,231
891
337
106.8
105.1
109.3
114.8
67.8
107.3
106.5
108.6
117.3
67.4
100.0
46.2
47.1
5.5
1.2
100.0
47.0
46.0
5.1
1.9
100.0
46.5
46.5
5.0
1.9
However, passenger numbers were down 2.8% on the forecast in the annual plan, mostly as a result of the temporary
suspension of flights by Iran Air (for refuelling) in the period between June and November, and the fact that, in the plan
for 2014, we had already provided for an additional daily Air Serbia flight in the 2014 summer flight timetable, but this
actually only took effect in December. In addition, the political situation in the Middle East during the summer months
brought a significant decline in the number of flights made by Israeli airlines, and a corresponding decline in passenger
29
Annual Report 2014
numbers. The same reasons also explain why the volume of aircraft movements was 3.5% below the annual plan. In
terms of cargo tonnage, we exceeded the plan by 7.3%.
PUBLIC TRANSPORT
Public transport accounts for the majority of traffic at the airport. Passenger numbers in this segment were up 3.1% on
2013, as the domestic airline’s passenger numbers rose by 2.6% and the foreign airlines’ passenger numbers by 4.5%.
Passenger numbers were down 1.5% on the forecast in the annual plan, as the domestic airline exceeded its forecast by
0.2%, while foreign airlines fell 5.2% short of their forecast. The domestic airline recorded a rise in passenger numbers
on the previous year, having added two new destinations to its network in 2014 (Warsaw and Prague). Air Serbia, which
operates a daily service between Ljubljana and Belgrade, was a significant factor in the rise in passenger numbers at the
airport. Turkish Airlines, which operates a daily service between Ljubljana and Istanbul, was also a factor in the rise. The
number of aircraft movements by Air France declined, but this was not reflected in passenger numbers, thanks to the
use of larger aircraft since the beginning of the 2014 summer timetable and good load factors. The low-cost airlines Wizz
Air and easyJet also recorded good load factors. Finnair saw a slight fall in passenger numbers compared with the
previous year, having resumed its services later in 2014. However, it operated larger aircraft on the Ljubljana-Helsinki
route, with good load factors. The situation in the Middle East had an adverse impact on traffic at the airport, as the 2014
summer timetable saw a significant decline in charter passenger numbers from Israel.
The shortfall relative to the forecast in terms of the number of aircraft movements was lower than that recorded for
passenger numbers (the number of aircraft movements was down 2% on the forecast in the annual plan), which was a
reflection of the aforementioned shortfall of 11% in the number of aircraft movements recorded by foreign airlines, while
the domestic airline’s number of aircraft movements was up 1.5% on the forecast. The number of aircraft movements in
public transport was also down on 2013 (by 3.5%), the domestic airline recording a fall of 4.8% while foreign airlines
recorded an increase of 0.8%. Airlines used larger and heavier aircraft overall, which had a positive impact on operating
revenues.
Seasonal component
Public passenger traffic, which accounts for 97.7% of all passenger numbers at the airport, is highly seasonal with a
peak in the summer months, while cargo traffic is mostly evenly distributed across the year.
Monthly breakdown of public passenger transport and cargo tonnage
4,000
150,000
Passengers
3,000
120,000
90,000
2,000
60,000
1,000
30,000
-
jan
feb
mar
apr
may
Public transport passengers
jun
jul
aug
sep
Public transport movements
30
oct
Cargo
nov
dec
Aircraft movements, cargo (in tonnes)
180,000
Annual Report 2014
Public passenger transport: scheduled and charter services
Nine airlines provided scheduled flights from the airport in 2014, the same number as in the previous year. A total of
1,156,083 passengers were handled, up 4.9% on the previous year. The remaining 151,296 passengers were handled
on charter flights; the figure was down 8.3% on the previous year. Passengers on scheduled flights accounted for 88.4%
of all public transport passengers, 1.4 percentage points more than in the previous year.
Public transport passengers: scheduled and charter flights
scheduled
charter
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
thousand passengers
2014
2013
Transfer passengers in public transport
Transfer passengers accounted for 15.4% of public transport passengers in 2014. They totalled 200,934, down 0.2% on
2013.
Public transport passengers: transfer and other
transfer
other
0
200,000
400,000
600,000
2014
800,000
1,000,000
1,200,000
thousand passengers
2013
Low-cost airlines’ public transport passengers
An important category within public transport is low-cost airlines (easyJet, Wizz Air), who accounted for 12% of public
transport passengers, down 0.5 percentage points on the previous year. They handled 157,152 passengers, down 1.3%
on the previous year.
Public transport passengers: low-cost and other
low-cost
other
0
200,000
400,000
600,000
2014
800,000
2013
1,000,000
1,200,000
thousand passengers
31
Annual Report 2014
Breakdown by airline and destination
The domestic airline accounted for the largest proportion of traffic in public transport and, to a greater extent than the
foreign airlines, displayed a declining trend in the number of aircraft movements while using larger aircraft (in line with its
strategy Adria Airways withdrew the smaller 50-seat Canadair 200s from service and replaced them with the larger 86seat Canadair 900s). The domestic airline carried 69.4% of public transport passengers. Its passenger numbers of
906,966 were up 2.6% on 2013. The rise in the domestic airline’s passenger numbers was the result of a rise in
passenger numbers on scheduled flights1 and a rise in passenger numbers on charter flights. While the domestic
airlines’ number of aircraft movements was down 4.8% on the same period last year,2 the main domestic airline used
larger, heavier aircraft to a significantly greater extent.
Foreign airlines carried the remaining 30.6% of passengers in public transport. Their passenger numbers were up 4.5%
on 2013 (but down 5.2% on forecast in the annual plan), while the number of aircraft movements was up 0.8% (but down
11% on the forecast). A major factor in the rise in passenger numbers was Air Serbia, which has operated a service
between Ljubljana and Belgrade with increasing load factors since last December. Of the foreign airlines operating
scheduled flights, there was a significant increase in traffic at Turkish Airlines:3 its passenger numbers were up 6.6%,
while the number of aircraft movements was up 8%. Air France recorded a fall of 2.7% in passenger numbers in 2014
(and a fall of 16.6% in the number of aircraft movements4). The passenger numbers and the number of aircraft
movements of the low-cost airlines Wizz Air and easyJet were down slightly on the previous year.
Breakdown of public passenger transport by carrriers
Adria Airways
easyJet
Turkish Airlines
Wizz Air
Air France
Air Serbia
Finnair
Montenegro Airlines
Israir
Other*
0
200
400
2014
600
2013
800
1,000
thousand passengers
* Other comprises charter airlines.
In the 2014 summer timetable, which came into effect on 30 March, scheduled services were launched to Prague (four times a week), Warsaw
(three times a week) and London (twice a week). In its winter timetable Adria Airways discontinued flights to London and maintained a thrice-weekly
service to Prague and Warsaw.
1
The number of aircraft movements recorded by the domestic airline Adria Airways was down 7%, while the scheduled cargo airline Solinair
launched a service to Belgrade last November, and thus recorded a significant rise in the number of flights (915 in 2014, compared with 573 in
2013), resulting in an overall fall of 4.8% in the number of aircraft movements recorded by domestic airlines in public transport.
2
It has operated a daily Istanbul service since the introduction of the 2013 summer timetable (in April 2013), while it operated just five flights a week
in the first quarter of 2013.
3
With the introduction of the 2013 summer timetable (in April 2013), it reduced the number of flights on its Paris service while using a larger aircraft
(daily flights with a 72-seat or 76-seat aircraft, having previously flown 12 times a week with a 50-seat aircraft).
4
32
Annual Report 2014
In 2014 public transport passengers were able to choose between 25 scheduled destinations (compared with 24 in
2013), services to Frankfurt, London, Istanbul, Zurich, Munich, Paris and Brussels accounting for just over half of all
passengers.
Breakdown of public passenger transport by destinations
Frankfurt
London
Istanbul
Zurich
Munich
Paris
Brussels
Vienna
Moscow
Tirana
Skopje
Pristina
Belgrade
Helsinki
Charleroi
Podgorica
Antalya
Tel Aviv
Copenhagen
Sarajevo
Amsterdam
Hurgada
Praga
Rodos
Warsaw
Monastir
Zakynthos
Cyprus
Kos
Samos
Preveza
Kefalonia
Karpathos
Crete
Djerba
Mytilene
Manchester
Malta
Sharm El Sheikh
Santorini
Other*
0
20
40
60
2014
80
2013
* The item “other” comprises destinations with fewer than three thousand passengers in 2014.
33
100
120
thousand passengers
140
Annual Report 2014
GENERAL AVIATION
In the general aviation segment, which is of marginal importance to the company in revenue terms, the number of aircraft
movements in 2014 amounted to 7,789 (down 5.5% on the previous year and down 3.9% on the forecast in the annual
plan). General aviation passenger numbers amounted to 3,200 (down 2.4% on the previous year, but up 6.8% on the
forecast).
OTHER
In the segment of other services, the majority of aircraft movements relate to technical flights. This segment also
includes training flights for public transport cockpit crew. Transit passengers5 on technical flights by Iran Air, which
suspended its operations at Ljubljana Jože Pučnik Airport between June and November, account for the passengers in
this segment, which is why the figure was down on the previous year and the forecast in the annual plan.
CARGO TRANSPORT
The cargo segment also recorded favourable developments in 2014: cargo tonnage was up 6.8% on 2013, and up 7.3%
on the forecast in the annual plan. Air cargo tonnage was up 5.1% on the previous year (and up 6.5% on the forecast in
the annual plan), while truck cargo tonnage was up 9.3% on the previous year (and up 8.6% on the forecast). Mail
tonnage was up 17.3% on the forecast in the annual plan, and up 14.8% on the previous year.
In 2014 scheduled truck cargo services were provided by Air France and Lufthansa, and there were occasional services
by Korean Air, Cargolux, CSA Czech Airlines, Adria Airways and others. Alongside DHL, the other major express
package operators with a presence at the airport are UPS and TNT, who use Ljubljana as a hub for south-eastern
Europe.
Plans for 2015
The traffic plan for 2015 has been drawn up in light of the airlines’ 2014/15 winter timetables and 2015 summer
timetables. For airlines whose flights for the summer season have not yet been announced, we used the figures for their
flights in previous years or their unofficial forecasts. The plan also takes account of economic trends and aviation trends
and forecasts for 2015.
The number of passengers is forecast to increase compared to 2014, primarily attributable to a rise of number of
passengers in public transport. The number of aircraft movements is also forecast to increase (however, this growth will
lag behind the increase in the number of passengers), primarily on the foreign market. The main factors in the increase
will be a new airline, Swiss International Air Lines (daily flights), Air Serbia (an extra daily flight) and Turkish Airlines (an
extra three flights a week). The domestic airline is planning to launch new services to Berlin and to Stockholm.
A slight increase compared to 2014 is also planned in the cargo segment.
5
Passengers who fly on under the same flight number and as a rule do not disembark the aircraft.
34
Annual Report 2014
3.4 ANALYSIS OF PERFORMANCE
3.4.1 OPERATING PROFIT
1.-12./14
in euros
1.-12./13
P2014
Index
Proportion
R14/R13 R14/P14 1.-12./14 1.-12./13 P2014
Operating revenues
32,048,626 31,265,191
32,384,076
102.5
99.0
100.0
Net sales revenue
Other operating revenues
31,827,518 30,986,744
221,108
278,447
32,228,564
155,512
102.7
79.4
98.8
142.2
99.3
0.7
99.1
0.9
99.5
0.5
Operating expenses
Costs of materials and services
25,353,142 25,133,164
8,390,284 8,387,304
26,432,339
8,804,108
100.9
100.0
95.9
95.3
79.1
26.2
80.4
26.8
81.6
27.2
1,746,090
6,641,214
1,862,475
6,941,633
90.1
102.6
84.5
98.2
4.9
21.3
5.6
21.2
5.8
21.4
12,185,024 11,641,568
4,488,359 4,519,326
289,475
584,966
12,057,000
4,861,731
709,500
104.7
99.3
49.5
101.1
92.3
40.8
38.0
14.0
0.9
37.2
14.5
1.9
37.2
15.0
2.2
11,183,843 10,651,353
10,813,468
105.0
103.4
34.9
34.1
33.4
20.9
19.6
18.4
Costs of materials
Costs of services
Labour costs
Depreciation/amortisation
Other operating expenses
Operating profit before interest, taxes and
depreciation/amortization - EBITDA
Operating profit (EBIT)
1,573,616
6,816,668
6,695,484
6,132,027
5,951,737
109.2
112.5
Net finance income/expenses
Finance income
Finance expenses
-1,716,044
1,524,834
3,240,878
-65,127
1,265,495
1,330,622
1,104,569
1,475,486
370,917
2,634.9
120.5
243.6
-155.4
103.3
873.7
Pre-tax profit
4,979,440
6,066,900
7,056,306
82.1
70.6
Income tax expense
Deferred tax
1,187,554
197,975
957,339
-84,823
1,081,868
-52,185
124.0
-233.4
109.8
-379.4
Net profit
3,593,911
5,194,384
6,026,623
69.2
59.6
100.0 100.0
The company’s performance in 2014 was good. Operating revenues were up 2.5% (EUR 783 thousand) on the figure
realised in 2013 at EUR 32,049 thousand, down 1% (EUR 335 thousand) on the annual plan. Operating expenses were
up 0.9% (EUR 220 thousand) on the figure realised in 2013 at EUR 25,353 thousand, but were nevertheless down 4.1%
(EUR 1,079 thousand) on the annual plan. EBIT amounted to EUR 6,695 thousand, up 12.5% (EUR 744 thousand) on
the annual plan and up 9.2% (EUR 563 thousand) on the figure realised in 2013.
The net financial result in the reporting period was less favourable. As a result of the sale of financial assets under asset
management contracts, finance income was up on 2013 (at EUR 1,525 thousand, up 20.5% on the figure realised in
2013 and also up 3.3% on the annual plan), while an impairment of the investment in Adria Airways Tehnika d.d. in the
amount of EUR 2,736 thousand (this impairment was not forecast) meant that finance expenses were also up (at EUR
3,241 thousand).
Despite the good performance and the increase in finance income, the company failed to fully compensate for the
negative impact of the impairment on its operating result: pre-tax profit in the reporting period amounted to EUR 4,979
35
Annual Report 2014
thousand, while net profit amounted to EUR 3,594 thousand, down on the figure realised in 2013 and down on the
annual plan.6
Operating revenues
Operating revenues amounted to EUR 32,049 thousand in 2014, up 2.5% or EUR 783 thousand on the figure realised in
2013, but down 1% or EUR 335 thousand on the annual plan. The main factors in the increase in operating revenues
relative to 2013 were the rise in passenger numbers and cargo tonnage, the shifts in the use of aircraft7 in public
transport, and an increase in revenues from commercial services.
The vast majority of operating revenues (99.3%) comprised sales revenue, which amounted to EUR 31,828 thousand.
Services on the domestic market accounted for 69.8% of the total, at EUR 22,221 thousand, up 3.3% on 2013, but down
0.3% on the forecast in the annual plan. Revenues generated on foreign markets (EUR 9,607 thousand or 30.2% of
sales revenue) were up 1.3 percent on the previous year, but were down 3.5% on the forecast in the annual plan.
Operating revenues by market
22,221
Domestic
market
21,504
22,278
9,607
Foreign market
9,483
9,951
0
5,000
10,000
1.‒12./14
15,000
1.‒12./13
P1.-12/14
20,000
25,000
in thousand euros
Revenue from airport services and ground handling services on the domestic market amounted to EUR 13,099
thousand, up 3.4% on the previous year and up 1.6% on the forecast in the annual plan, while operating revenues on the
foreign market were down slightly (by 1.1%) on the previous year at EUR 8,822 thousand, and were down 6.7% on the
forecast. The main reason for the decline in revenues on the foreign market was the suspension of Iran Air’s refuelling
stops8 at our airport. Another factor was the withdrawal of Israeli airlines, which reduced their flights in the summer
months of 2014 because of the crisis situation in the Middle East.
In connection with commercial services, the company continued its intensive marketing activities and its pursuit of
targets, which was reflected positively in the result. Revenue from commercial services amounted to EUR 9,267
thousand, up 6.3% (EUR 550 thousand) on the previous year, and up 0.9% (EUR 82 thousand) on the forecast in the
annual plan. Rental income, which accounted for over a third of total revenue from commercial services, amounted to
EUR 3,390 thousand, up 11.7% on the previous year and down 3.3% on the forecast, primarily as a result of additional
hangar space. The increase in cargo tonnage was reflected in an increase in revenue from warehousing services, which
at EUR 2,030 thousand was up 5.3% on the previous year, but was down 1.2% on the forecast. Despite the adverse
economic situation the company also succeeded in recording an increase in revenue from advertising, which at EUR 738
thousand was up 11.1% on the previous year and up 24.5% on the forecast. Revenue from parking fees was up 2.5% on
the previous year at EUR 2,251 thousand and up 0.7% on the forecast.
Without the impairment of the investment in Adria Airways Tehnika d.d. the pre-tax profit would have amounted to EUR 7,715 thousand (up 27.2%
on 2013 and up 9.3% on the annual plan), and the net profit to EUR 6,097 thousand (up 17.4% on 2013 and 1.2% on the annual plan).
6
Airlines used larger and thus heavier aircraft overall, which had a positive impact on operating revenues, given that a significant proportion of the
company’s revenues are tied to aircraft weight.
7
8
Iran Air did not fly to Ljubljana Airport between 9 June and 24 November 2014.
36
Annual Report 2014
Other revenues, which at EUR 860 thousand accounted for 2.7% of operating revenues, primarily comprise revenue
from refunds of costs charged to tenants (electricity, water, telephone, heating and similar) in the amount of EUR 623
thousand, and other operating revenues in the amount of EUR 221 thousand. These notably included revenue from
the sale of non-current assets in the amount of EUR 89 thousand and revenue in the amount of EUR 87 thousand from
the reversal of provisions for covering depreciation costs for infrastructure and equipment for which the company
received grants from the Slovenian state budget in 1993 and 1994.
Operating revenues
13,099
12,671
12,894
Airport services and ground
handling services - domestic market
8,822
8,922
9,456
Airport services and ground
handling services - foreign market
9,267
8,717
9,185
Commercial services
860
956
849
Other
0
2,000
4,000
1.‒12./14
6,000
1.‒12./13
8,000
10,000
P1.-12/14
12,000
14,000
in thousand euros
In the breakdown of operating revenues, revenue from airport services accounted for 50.4% of the total, revenue from
ground handling services for 18% and revenue from commercial services for 28.9%. The proportion accounted for by
ground handling services was down 1.3 percentage points on last year as a result of the greater use of aircraft deicing
services in 2013, while the proportions accounted for by commercial services and by airport services increased by 1
percentage points and 0.6 percentage points respectively. The proportion accounted for by other revenues declined by
0.4 percentage points.
Breakdown of operating revenues
Airport services
50.4%
Ground handling services
18.0%
Other
2.7%
37
Commercial services
28.9%
Annual Report 2014
Operating expenses
Operating expenses amounted to EUR 25,353 thousand in 2014, up 0.9% (EUR 220 thousand) on 2013, but down 4.1%
(EUR 1,079 thousand) on the annual plan. Costs of services were up on 2013 (but not on the forecast in the annual
plan), as were labour costs (which were up a fraction on the forecast in the annual plan). By contrast, amortisation and
depreciation costs were down on the previous year and on the forecast, as were costs of materials and other operating
expenses.
Operating expenses by type
1,574
1,746
1,681
Costs of materials
6,817
6,641
6,451
Costs of services
12,185
11,642
10,958
Labour costs
4,488
4,519
4,415
Depreciation/amortisation
289
585
573
Other operating expenses
0
2,000
4,000
1.-12./14
6,000
1.-12./13
8,000
10,000
P1.-12./14
12,000
14,000
in thousand euros
There were no significant changes in the breakdown of operating expenses compared with the previous year, and
compared with the forecast in the annual plan. The largest proportion comprises labour costs, which accounted for
48.1% of the total, up 1.8 percentage points on 2013, and up 2.5 percentage points on the forecast in the annual plan.
Costs of services accounted for 26.9% of the total, up 0.5 percentage points on the previous year and up 0.6 percentage
points on the forecast. The proportion accounted for by amortisation and depreciation costs was down 0.3 percentage
points on 2013 at 17.7%, and down 0.7% on the forecast in the annual plan, while the proportion accounted for by costs
of materials was down 0.7 percentage points on 2013 at 6.2% (and down 0.8 percentage points on the forecast).
Breakdown of operating expenses
Costs of services
26.9%
Depreciation/amortisation
17.7%
Costs of materials
6.2%
Other operating expenses
1.1%
Labour costs
48.1%
Costs of materials amounted to EUR 1,574 thousand, down 9.9% (EUR 172 thousand) on 2013, and down 15.5%
(EUR 289 thousand) on the forecast in the annual plan. Costs of materials are disclosed in the table in point 5.2.3 of the
Financial Report, but a substantive explanation of the major items is given below.
38
Annual Report 2014
Energy costs accounted for just over a half of all costs of materials (EUR 872 thousand). The largest item was electricity
costs, which amounted to EUR 511 thousand. There were savings in consumption of electricity compared with the
previous year and the forecast in the annual plan, which were partly related to continual measures to reduce electricity
consumption, and were partly a reflection of the weather conditions in the summer (low temperatures meant that there
was less demand for cooling in buildings). Heating costs were also reduced, in connection with the changeover to gasfired heating, and the milder winter in the first quarter of 2014. Heating oil costs amounted to EUR 159 thousand, down
45.6% on the previous year and down 47.9% on the forecast in the annual plan. Energy costs also include motor fuel
costs of EUR 203 thousand, which were down approximately 12% on the previous year and the forecast. Costs of nondurables amounted to EUR 241 thousand, down 8.3% on the previous year and down 15.6% on the forecast in the
annual plan (a significant proportion comprises gritting and deicing materials, consumption of which was down in the first
quarter of 2014 as a result of the milder winter). Other material costs relate primarily to costs of materials for current
maintenance (EUR 178 thousand), costs for cleaning materials (EUR 58 thousand) and small inventory costs (EUR 154
thousand; the increase relative to 2013 is related to the procurement of uniforms).
By contrast, costs of services (EUR 6,817 thousand) were up 2.6% on the previous year (as a result of increases in
various types of service costs compared with the previous year), but were down 1.8% on the forecast in the annual plan.
Costs of services are disclosed in the table in point 5.2.4 of the Financial Report, but a substantive explanation of the
major items is given below.
Security costs (EUR 1,622 thousand) accounted for just under a quarter of total costs of services, and were up 3.1% on
the previous year and down 0.5% on the forecast. Maintenance costs amounted to EUR 957 thousand, down 2.7% on
the previous year and down 2.1% on the forecast. The majority comprise maintenance costs for infrastructure and
equipment (assets) in the amount of EUR 630 thousand, which were down approximately 5% on the previous year and
on the forecast in the annual plan. Maintenance costs also include cleaning costs (EUR 206 thousand), which did not
differ significantly from the previous year or the forecast.
Costs of marketing services amounted to EUR 866 thousand, down 0.5% on the previous year and down 5.7% on the
forecast.
Of costs of services related to the core line of business (EUR 852 thousand, up 1.8% on the previous year but down
3.6% on the forecast), just under half (EUR 373 thousand) comprised costs of the services of the Civil Aviation Agency,
which were up 4.1% on the previous year as a result of a legally prescribed increase in the point value, but down 2.6%
on the forecast. Another important component of this item is costs of DCS automated check-in (EUR 244 thousand),
which were down 0.8% on the previous year and on the forecast. Costs of traffic coordination on the apron were also
significant at EUR 101 thousand, at the level of the previous year and the forecast.
Costs of intellectual property services amounted to EUR 397 thousand, up 10% on the previous year, primarily as a
result of the procedure to sell the company, but down 2.4% on the forecast in the annual plan.
Costs of student work amounted to EUR 377 thousand, up 8.8% on the previous year, as a result of a fall in the full-time
headcount in ground handling services and the consequent increased demand for temporary labour (absences for firefighting training), and down 2.5% on the forecast.
Labour costs amounted to EUR 12,185 thousand in 2014, up 4.7% (EUR 543 thousand) on the figure realised in 2013,
and up 1.1% (EUR 128 thousand) on the annual plan. The increase compared with last year was primarily attributable to
the rise of 5% in basic wages on 1 January 2014 (wages have not been aligned with inflation since 2008).
Amortisation and depreciation costs amounted to EUR 4,488 thousand, down 0.7% (EUR 31 thousand) on 2013, and
down 7.7% (EUR 373 thousand) on the forecast, as a result of the failure to implement certain planned investments in
39
Annual Report 2014
the infrastructure and equipment for this year, and due to delays in the implementation of certain investments relative to
the plan.
Other operating expenses amounted to EUR 289 thousand. The most notable item was the fee for the use of building
land (EUR 111 thousand).
EBIT
The operating profit (EBIT) generated as the surplus of operating revenues over operating expenses in 2014 was EUR
6,695 thousand, up 9.2% (EUR 563 thousand) on the figure realised in 2013, but up 12.5% (EUR 744 thousand) on the
forecast.
Similarly, EBITDA was up 5% (EUR 532 thousand) on 2013 at EUR 11,184 thousand and up 3.4% (EUR 370 thousand)
on the forecast.
Net finance income/expenses
Finance income was up compared with 2013 on account of the sale of financial assets under asset management
contracts. It amounted to EUR 1,525 thousand, up 20.5% or EUR 259 thousand compared with the previous year, and
up 3.3% or EUR 49 thousand on the forecast. An impairment of the investment in Adria Airways Tehnika d.d. in the
amount of EUR 2,736 thousand at the end of the second quarter (this impairment was not forecast in the plan) meant
that finance expenses were also up (at EUR 3,241 thousand). Another major item of finance expenses was interest
expenses under the agreement on general superficies, which amounted to EUR 322 thousand (these expenses were
forecast in the plan).
Pre-tax profit, net profit
Pre-tax profit amounted to EUR 4,979 thousand in 2014, down 17.9% or EUR 1,087 thousand on 2013 and down
29.4% or EUR 2,077 thousand on the annual plan, primarily as a result of the impairment of the investment in Adria
Airways Tehnika d.d.
Similarly, net profit was down 30.8% (EUR 1,600 thousand) on the figure realised in 2013 and down 40.4% on the
forecast (EUR 2,433 thousand) at EUR 3,594 thousand.
40
Annual Report 2014
3.4.2 BALANCE SHEET
in euros
31.12.2014
ASSETS
31.12.2013
106,075,424 131,027,281
Index Proportion Proportion
14
13
14/13
81.0
100.0
100.0
Non-current assets
Intangible assets
Property, plant and equipment
Investments in associates
Non-current financial assets
Non-current operating receivables
Deferred tax assets
92,228,198
8,885,111
78,950,711
0
3,431,189
59,873
901,314
91,930,837
2,126,258
79,512,848
3,147,369
6,072,657
59,873
1,011,832
100.3
417.9
99.3
0.0
56.5
100.0
89.1
86.9
8.4
74.4
0.0
3.2
0.1
0.8
70.2
1.6
60.7
2.4
4.6
0.0
0.8
Current assets (total)
Current assets excluding prepayments and accrued income
Available-for-sale assets (disposal groups)
Inventories
Current financial assets
Current operating receivables
Cash and cash equivalents
Current prepayments and accrued income
13,847,226
13,800,477
411,392
339,501
8,842,985
4,143,603
62,996
46,749
39,096,444
38,939,133
0
363,678
33,981,640
4,212,034
381,781
157,311
35.4
35.4
/
93.4
26.0
98.4
16.5
29.7
13.1
13.0
0.4
0.3
8.3
3.9
0.1
0.0
29.8
29.7
0.0
0.3
25.9
3.2
0.3
0.1
106,075,424 131,027,281
81.0
100.0
100.0
92,781,304 124,785,005
15,842,626 15,842,626
24,287,659 24,287,659
43,933,874 78,729,212
96,059
720,846
8,621,086
5,204,662
74.4
100.0
100.0
55.8
13.3
165.6
87.5
14.9
22.9
41.4
0.1
8.1
95.2
12.1
18.5
60.1
0.6
4.0
EQUITY AND LIABILITIES
Shareholder equity
Issued capital
Share premium
Profit reserves
Revaluation surplus
Retained earnings
Non-current liabilities (total)
Provisions and non-current accruals and deferred income
Provisions for jubilee benefits and termination benefits
Non-current accruals and deferred income
Non-current liabilities
Non-current operating liabilities
8,580,209
1,359,847
1,244,604
115,243
7,220,362
7,220,362
1,935,748
1,134,542
932,070
202,472
801,206
801,206
443.3
119.9
133.5
56.9
901.2
901.2
8.1
1.3
1.2
0.1
6.8
6.8
1.5
0.9
0.7
0.2
0.6
0.6
Current liabilities (total)
Current liabilities
Current operating liabilities
Current accruals and deferred income
4,713,911
4,538,217
4,538,217
175,694
4,306,528
4,165,046
4,165,046
141,482
109.5
109.0
109.0
124.2
4.4
4.3
4.3
0.2
3.3
3.2
3.2
0.1
Total assets amounted to EUR 106,075 thousand as at 31 December 2014, down EUR 24,952 thousand on the balance
as at 31 December 2013, as the result of the payment of dividends for 2013 in the amount of EUR 34,973 thousand
under the General Meeting’s resolution implemented in July 2014. Compared with the balance as at 31 December 2013,
the mentioned payment of dividends was reflected in a decline in current and non-current financial assets and other
profit reserves.
41
Annual Report 2014
Assets and equity and liabilities by maturity (in thousand euros)
126,721
101,362
92,228 91,931
39,096
13,847
Non-current assets
4,714
Current assets
Non-current liabilities
31.12.2014
4,307
Current liabilities
31.12.2013
In the breakdown of assets, non-current assets (EUR 92,228 thousand) accounted for 86.9% of the total. The stock was
up 0.3% on 31 December 2013. With respect to the acquisition of general superficies, intangible assets increased (EUR
8,885 thousand), while the value of property, plant and equipment (EUR 78,951 thousand) declined as a result of a
surplus in amortisation/depreciation costs over the value of these assets during the accounting period. The value of noncurrent financial assets (EUR 3,431 thousand) declined due to the sale of financial assets under asset management
contracts. In connection with the sale of Adria Airways Tehnika d.d., the investment in this associate was disclosed
under current assets as at 31 December 2014 as an available-for-sale asset with a carrying amount of EUR 411
thousand, taking into account that the investment was impaired at the end of the second quarter of the year (the same
investment was disclosed among non-current assets in the amount of EUR 3,147 thousand as at 31 December 2013).
Current assets amounted to EUR 13,847 thousand as at 31 December 2014 (accounting for 13.1% of total assets), down
64.6% on 31 December 2013. The value of current financial assets (EUR 8,843 thousand) was down due to the payment
of dividends (on 22 July 2014) in the amount of EUR 34,973 thousand in accordance with the General Meeting
resolution. Current operating receivables (EUR 4,144 thousand) declined slightly in comparison with the situation as at
31 December 2013.
in thousand euros
Assets
100,000
87,836
81,639
80,000
60,000
40,000
33,982
20,000
0
0
3,147
Intangible assets, Investments in
property, plant
associates
and equipment
8,843
3,431 6,073
411
0
4,1444,212
Non-current Available-for-sale Current financial Current operating
financial assets
assets
assets
receivables
31.12.2014
1,4101,974
Other assets
31.12.2013
Non-current liabilities (EUR 101,362 thousand) account for 95.6% of total equity and liabilities, and are used to finance
all of the company’s non-current assets and a significant proportion of its current assets. Shareholder equity accounted
42
Annual Report 2014
for the majority of non-current liabilities (EUR 92,781 thousand or 87.5% of total equity and liabilities as at 31 December
2014, down 7.8 percentage points on the balance as at 31 December 2013), while the remainder (8.1% of total equity
and liabilities) primarily comprised other non-current liabilities (EUR 8,580 thousand). The most important item is noncurrent operating liabilities (EUR 7,220 thousand), which accounted for 6.8% of total equity and liabilities, and were up
EUR 6.4 million on 31 December 2013. The increase was the result of the conclusion of a general agreement on
superficies. The liabilities under this agreement will be settled in instalments in the 40 years since acquisition (the period
for which the superficies were obtained).
Current liabilities accounted for 4.4% of total equity and liabilities (EUR 4,714 thousand), and primarily comprised current
operating liabilities (EUR 4,538 thousand or 4.3% of total equity and liabilities). Of this amount, current trade payables
amounted to EUR 2 million (EUR 0.4 million lower than at 31 December 2013), other current operating liabilities of EUR
2.2 million (EUR 0.6 million higher than at 31 December 2013 of which the majority related to the current portion of
liabilities for the payment of general construction rights which had been acquired in early 2014), and tax on profits
amounted to EUR 0.3 million.
The company had no financial liabilities as at 31 December 2014.
in thousand euros
Equity and liabilities
140,000
124,785
120,000
100,000
92,781
80,000
60,000
40,000
20,000
8,580
4,714 4,307
1,936
0
Shareholder equity
Other non-current liabilities
31.12.2014
31.12.2013
Current operating liabilities, accruals
and deferred income
For more about individual balance sheet items, see points 5.1 of the Financial Report.
3.4.3 FINANCIAL MANAGEMENT
The company’s liquidity remained high in 2014, as a result of the regular payments made by customers and in keeping
with proper financial policy in any case. We settled our liabilities as they fell due. Current financial assets were reduced
by dividend payments, and amounted to EUR 8,843 thousand as at 31 December 2014. They primarily comprise bank
deposits. When investing spare cash, we pursue a combination of diversification, security, return and maturity of
individual placements.
The company is primarily financed via equity. The investments made in 2014 and in previous years were financed in full
by internal resources, and the company has no financial liabilities. Non-current operating liabilities disclosed as at 31
December 2014 primarily relate to liabilities for the general superficies fee.
Given its asset position and the existing breakdown of its liabilities, the company is assessed as having favourable
possibilities of obtaining external financing (loans), despite the current adverse situation on the financial markets. The
cash that we have invested at banks in the form of deposits represents a high-quality liquidity reserve.
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Annual Report 2014
For the purpose of providing current liquidity, primarily in connection with the existing risks associated with payments by
our largest airline, the company concluded two revolving loan agreements in the total amount of EUR 15 million for the
period to 2017.
3.4.4 CASH FLOWS
Opening balance of cash
Cash flows from operating activities
Cash flows from investment activities
Cash flows from financing activities
Effect of foreign exchange differences on cash and cash
Closing balance of cash
2014
381,781
9,079,978
25,567,841
-34,969,127
2,523
62,996
in euros
2013
225,290
11,161,991
-8,425,550
-2,584,829
4,879
381,781
The cash flow from operating activities generated in 2014 amounted to EUR 9,080 thousand. The company primarily
used them for dividend payments (cash flow from financing activities) and for investment.
The company mainly placed the remaining surplus generated by operating activities after payments to owners
(dividends) and the cash from returns and releases of existing financial assets in current financial assets.
3.4.5 PERFORMANCE INDICATORS
The ratio of EBITDA to operating revenues and the ratio of EBIT to operating revenues rose as the increase in operating
revenues outpaced the increase in operating expenses.
2014
0.349
0.209
EBITDA margin*
EBIT margin**
2013
0.341
0.196
* (operating profit or loss + depreciation/amortisation)/operating revenues
** operating profit or loss/operating revenues
The outpacing of the increase in operating expenses by the increase in operating revenues was also reflected in a rise in
the operating efficiency ratio, while the decline in finance income and increase in finance expenses brought a decline in
the overall efficiency ratio relative to the previous year.
2014
1.264
1.174
Operating efficiency ratio*
Overall efficiency ratio**
2013
1.244
1.229
* operating revenues/operating expenses
** total revenues/total expenses
Net profit in 2014 was down on that generated in 2013, which despite a slight decline in assets and equity was reflected
in a decline in ROE and ROA.
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Annual Report 2014
2014
0.034
0.030
Net ROE*
Net ROA**
2013
0.043
0.040
* net profit/average capital and reserves excluding net profit for the year
** (net profit + interest obtained)/average assets
In the breakdown of equity and liabilities, the dividend payments reduced shareholder equity in 2014, although it still
accounts for 87.5% of the total, and the company is free of debt and financially stable. Equity suffices for the financing of
all non-current assets and a portion of the current assets.
2014
1.006
0.875
Equity to non-current assets ratio*
Self-financing ratio**
2013
1.357
0.952
* capital and reserves/non-current assets
** capital and reserves/equity and liabilities
3.4.6 PLANS FOR 2015
The company’s business plan for 2015 takes account of the forecast for traffic, the forecast breakdown of services and
the anticipated level of pricing, and the regularity of payments by our customers, the largest business partner in
particular. It does not envisage expenses for impairments of financial assets or the creation of impairments of
receivables.
The forecast increase in traffic volume in 2015 will be tracked by an increase in operating revenues. The continued
pursuit of the cost control policy will ensure that costs are outpaced by growth in revenues, which will be reflected in an
increase in EBITDA and EBIT.
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Annual Report 2014
3.5 EMPLOYEES
The company had a headcount of 402 at the end of the year, of whom 390 were permanent and 12 were temporary
employees. The gender breakdown was 27.4% women (110 in all), 72.6% men (292 in all). The headcount was
unchanged from 2013.
The company continued to use flexible forms of employment in 2014, by means of which we adjust the headcount to the
seasonal nature of business activities (student work, cooperation with employers whose demand for labour is higher in
the winter, in contrast to ours).
Average number of employees calculated from total hours worked
(total employees and students work)
432
424
Total
396
391
Full-time employment
36
33
Student work
0
100
200
300
2014
400
500
2013
Full-time hours worked in 2014 were up 1.1% on the previous year, while hours of student work were up 8.8%. The
average headcount calculated from total hours worked (including student work) stood at 432 in 2014, up seven (or 1.7%)
on 2013 (passenger numbers in public transport having increased by 3.1% over the same period).
Age structure of employees
The average age of the workforce was 41.7 at the end of 2014.
Some 296 employees are aged between 31 and 50 (73.6% of the total), 43 are aged between 21 and 30 (10.7%), and
63 are older than 51 (15.7%).
over 61
51 to 60
41 to 50
31 to 40
21 to 30
0%
5%
10%
15%
20%
2014
25%
2013
46
30%
35%
40%
45%
Annual Report 2014
Education structure
The ongoing work to raise the average level of qualifications is evident in the change in the qualifications breakdown
over the year: as at 31 December 2014 there were seven more employees with higher qualifications (one with universitylevel qualifications, and four with two-year tertiary qualifications).
master’s degree, doctorate
four-year tertiary, university
two-year tertiary
secondary, additional programme
other
0%
5%
10% 15% 20% 25% 30%
31.12.2014
31.12.2013
35%
40%
45%
External training courses
There were 120 training courses provided for employees outside the company in 2014. As in the previous year, the
majority comprised professional training courses (skills and further professional training in the areas of work that the
employees pursue), followed by occupational health and safety training, foreign languages, IT training and management
skills.
There were 344 enrolees in outside education and training, who received a total of 7,163 hours of instruction, an average
of 21 hours each. We earmarked EUR 116 thousand for outside education and training, up 26% on the previous year,
and equivalent to EUR 293 per employee.
professional education
information technology and computers
occupational health and safety
management skills
language courses
0%
10%
20%
30%
40%
50%
60%
70%
80%
In-house training
A total of 5,338 hours of in-house training was provided to full-time employees at the company at the Training Centre
and the Flight School, with a total of 1,324 participants. Each employee participated in an average of 13.5 hours of inhouse training, 0.8 hours more than in the previous year’s figure of 12.7 hours. The majority consisted of in-house
courses, fire protection training, training in the handling of dangerous substances, and training for renewing licences for
trained airport personnel.
47
Annual Report 2014
internal lectures*
fire safety
handling with dangerous materials
occupational health and safety
licences
safety and quality at work
airport driving permit
order and security at the airport
0%
10%
20%
30%
40%
50%
* In-house courses: aircraft deicing and anti-icing, training for winter services, training for aircraft accidents, etc.
Cooperation with education institutions, work experience
Practical training was provided for five students and four school students in 2014, who received a total of 2,789 hours of
instruction.
In conjunction with providers of secondary and university-level education, we participated in a public tender to co-finance
employer incentives for practical on-the-job training (co-financed by the European Social Fund and the Ministry of
Education, Science and Sport). The funding awarded was used to cover the costs of prizes for students and mentors.
For the first time since we have been participating in the public tender procedure, the company was subject to an audit of
the implementation of the project and the purpose-specific use of funding. The evaluation was satisfactorily completed,
and there were no anomalies.
Because the need to replace car mechanics will arise in the future, students of this discipline were given practical
training at the company. Communicating directly with young people and providing them with practical work experience
allows us to monitor their professional development even during schooling, and thus to attract the best people. We are
planning to work with schools providing education in professions that are difficult to obtain on the market.
Plans for 2015
Next year we will continue acting in accordance with the requirements of national and international legislation and the
requirements of airlines. We will effectively provide for an education and training system, an appropriate level of
qualification for employees, a rapid response to changes in the external environment and its influences, and the ongoing
upgrading and introduction of new technologies in the training process. A major innovation in training is the introduction
of an online education system, which will allow for even more effective and higher-quality transmission of skills to
employees and to external clients of the training centre.
In 2015 we will continue to develop the company’s most promising employees, helping them to achieve their career
objectives; we will identify their abilities, their skills and their interest in receiving further education, training and help in
career development.
Alongside our established HR activities such as annual interviews, in 2015 we are planning to expand on them with
additional projects in the area of HR development, such as the introduction of a succession system for key positions at
the company, the reintroduction of the systematic measurement of employee satisfaction across the company, the
introduction of multi-department training and an update to the job description system.
In parallel with the overhaul of the HR system, in 2014 we began introducing a new training module that will make
record-keeping and analysis of completed training easier and more transparent. We will set up a remote learning system
48
Annual Report 2014
for in-house training of employees and external participants. We will continue marketing the Flight School services to
domestic and foreign participants.
3.6 INVESTMENTS IN INFRASTRUCTURE AND EQUIPMENT
3.6.1 2014
Investments in infrastructure and equipment followed the strategic business plan for the 2014 to 2020 period adopted in
February 2014 and the business plan for 2014. In 2014 a total of EUR 3,200 thousand was invested in infrastructure and
equipment, of which EUR 1,934 thousand was for infrastructure, while the remainder was spent on airport equipment
(EUR 1,004 thousand) and computer equipment (EUR 262 thousand). This was equivalent to the realisation of 55.3% of
the forecast investment. The investments were financed entirely with internal resources.
in thousand euros
Plan 2014 Realisation 2014
2,958
1,934
1,028
262
1,803
1,004
5,789
3,200
Infrastructure, land
Computer equipment (hardware and software)
Airport equipment
Total
Index
R14/Pl14
65.4
25.5
55.7
55.3
Comparison of investments in infrastructure and equipment and the calculation of amortisation/depreciation for
the period 2010-2014
9.0
9
8
in million euros
7
6
6.7
6.6
5.8
5.3
4.5
5
4.5
4
3.2
2.4
3
2.2
2
1
0
2010
2011
amortization/depreciation
2012
2013
investments in infrastructure and equipment
2014
Construction of infrastructure
The majority of investments in infrastructure relate to the utilities fee for connection to the public sewerage system (EUR
510 thousand). The sewage collector linking the airport zone to the public sewerage system of the municipality of Cerklje
na Gorenjskem was also completed (EUR 236 thousand). The first phase of the renovation of the TWY E main airport
apron was carried out (EUR 276 thousand), and the second phase will be completed in the spring of 2015. Construction
of the second phase of the airport perimeter road was begun, 35% of which was due to be carried out by the end of 2014
(EUR 150 thousand). It will be completed by the spring of 2015. Sensors for the system for measuring temperature and
49
Annual Report 2014
for forecasting the state of the runway surface in winter were built into the runway (EUR 229 thousand), which will
increase air traffic safety. A total of EUR 152 thousand was earmarked for the refurbishment of building 24A (an
extension to the winter services garage). Energy efficiency improvements on the old office building included the
replacement of the oil-fired boiler with a gas boiler, and the installation of a heat pump (EUR 73 thousand). All the oil
traps in the precipitated water removal system were readjusted in accordance with new regulations (EUR 103 thousand),
and construction was begun on a third truck ramp at the cargo warehouse, which will be completed by early 2015 (EUR
31 thousand). As part of the project to upgrade existing technical security systems, a thermal vision camera was fitted on
transformer station 6, a surveillance camera to control the eastern side of the main airport apron was installed at security
control point 1, and a project of works that will be completed in the spring of 2015 was drawn up (EUR 102 thousand).
Computer equipment
We earmarked EUR 262 thousand for computer equipment in 2014, of which EUR 131 thousand was earmarked for
hardware and EUR 131 thousand for software. The overhaul of server infrastructure and the data backup system at the
primary and secondary locations increased the security, reliability and availability of the company’s information system.
We continued to upgrade the user infrastructure. The electronic exchange of outgoing invoices was introduced, and the
ACAD software was upgraded. We continued the upgrade of the support software for HR processes, and the
introduction of a GIS module for the electricity system. The two program packages are in the final phase of
implementation.
Airport equipment
A total of EUR 1,004 thousand was earmarked for airport equipment. EUR 479 thousand of this relates to the second
payment for the purchase of a fire-fighting vehicle (total value EUR 889 thousand, an advance of EUR 410 thousand
having already been paid in 2013), and EUR 163 thousand related to the second part of the payment for a conveyor belt
comprising an elevator with an extendible roller transporter (total value EUR 242 thousand, an advance of EUR 79
thousand having already been paid in 2013). EUR 110 thousand was earmarked for the purchase of two machines for
screening liquids.
In the first quarter of 2014 general superficies valued at EUR 8.2 million was obtained for a period of 40 years (beginning
1 January 2014) for 248 hectares of land. The fee will be repaid in annual instalments over the period for which
superficies has been obtained.
3.6.2 PLANS FOR 2015
The amount of investment in infrastructure and equipment will be known after the development plans have been
coordinated with the new owner.
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Annual Report 2014
4 AELG SHARES AND OWNERSHIP OF THE COMPANY
Under the takeover bid announced on 14 October 2014, Fraport AG acquired a total of 1,860,298 preference no-parvalue shares (ticker symbol AELP) and 1,859,872 ordinary no-par-value shares (ticker symbol AELG), equivalent to
97.99% of Aerodrom Ljubljana, d.d.’s share capital. The resolution for the transfer of the remaining AELG shares held by
minority shareholders to the principal shareholder was passed at the company’s 20th general meeting (19 January 2015).
The consideration paid to minority shareholders for the transfer of the shares was EUR 61.75 per share, the same as the
price offered in the takeover bid.
As at 31 December 2014, the company had 1,289 shareholders, a 81.7% drop on 31 December 2013.
Fraport AG Frankfurt Airport Services
Worldwide
Private individuals
Other legal entities
0%
20%
40%
31.12.2014
60%
80%
31.12.2013
100%
Ten largest company owners as at 31 December 2014
1
2
3
4
5
6
7
8
9
10
No. of shares
3,720,170
8,197
2,979
2,685
2,000
770
640
640
500
500
3,739,081
Fraport AG Frankfurt Airport Services Worldwide
Polunin Discovery Funds
Vlasak Tjašo
Miklič Mirko Bogomir
Vreček Zofija
Lovše Janez
Koprivec Marko
Povšin Marija Ana
Ambrožič Tadej
Petkovšek Danijela
TOTAL
Holding (in %)
97.99
0.22
0.08
0.07
0.05
0.02
0.02
0.02
0.01
0.01
98.49
The company’s ten largest shareholders held 3,739,081 shares (a 98.49% holding in the capital of the company).
Foreign shareholders held 3,729,845 shares (a 98.2% holding in the capital of the company).
No members of the Management Board or Supervisory Board owned shares in the company as at 31 December 2014.
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Annual Report 2014
Slovenian capital market and AELG share in 2014
850
65
800
55
SBITOP 750
45 AELG
700
35
650
25
SBITOP
AELG
The AELG share price rose by 113.9% in 2014. The share price stood at EUR 59.04 at the close of trading on
31 December 2014, while the average closing price during the year was EUR 11.37 less. The SBI TOP rose by 19.6%
over the reporting period. The AELG share price reached its high on 28 November (EUR 61.75 at close of trading), while
the largest volume was recorded on 5 August (EUR 1,645 thousand). The total volume of trading in 2014 amounted to
EUR 24.1 million, equivalent to 3.5% of total volume on the Ljubljana Stock Exchange. Market capitalisation amounted to
EUR 114.3 million as at 31 December 2014, up 113.9% on 31 December 2013 (0.5% of total market capitalisation on the
Ljubljana Stock Exchange).
Significant data on AELG shares
Market capitalisation as at 31 December* - in thousand euros
Turnover - in thousand euros
Lowest closing share price - in thousand euros
Highest closing share price - in thousand euros
Average closing share price - in thousand euros
Closing share price as at 31 December - in euros
Book value of a share as at 31 December - in euros
(shareholder equity/total number of shares issued)
Closing share price to book value of a share as at 31 December
Basic earnings per share - in euros (net profit (or loss) of ordinary
shareholders/average number of ordinary no-par value shares)
1-12.2014
114,315
24,102
29.00
61.75
47.67
59.04
1-12.2013
53,440
2,895
11.99
29.36
18.85
27.60
Index 14/13
213.9
832.5
241.9
210.3
252.9
213.9
24.44
2.42
32.87
0.84
74.4
287.7
1.86
1.32
140.9
0.95
1,289
3,796,527
1,860,298
1,936,229
1.37
7,062
3,796,527
1,860,298
1,936,229
69.2
18.3
100.0
100.0
100.0
Diluted earnings per share - in euros
(net profit/average number of all shares)**
Total number of shareholders as at 31 December
Total number of shares issued
- participating preference no-par value shares
- ordinaray no-par value shares, listed on stock exchange
* Ordinary no-par value shares, listed on stock exchange used in calculation.
** All shares used in calculation.
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Annual Report 2014
Dividend policy
One of the most important objectives adopted by Aerodrom Ljubljana, d.d. as part of its development strategy is its
capital policy, which is based on maximising the company’s returns and, consequently, the share returns in the long
term.
Review of dividends in the period 2002-2014
Ordinary no-par
value shares
0.87
0.93
1.00
1.11
1.10
1.10
0.43
0.63
0.43
0.64
0.63
9.16
/
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
53
in euros
Preference
participating nopar value shares
1.23
1.41
1.00
1.11
1.10
1.10
0.43
0.74
0.54
0.75
0.74
9.27
/
Annual Report 2014
5 RISK MANAGEMENT
The company sets out its risk control and management in two documents: the Rulebook for risk management and the
establishment of internal controls, and the Overall strategy of risk management and system of internal controls. The two
documents were adopted by the Management Board in 2012, and represent a major step forward in risk management at
the company, in accordance with the best practices of corporate governance, while formulating all the pre-existing
measures and internal controls. Risks are defined in a risk register in accordance with the two documents. After several
half-yearly and annual risk management reports, the Supervisory Board’s audit committee, the Management Board and
individual risk managers found the risk register to be too extensive and not conducive to a rapid insight into risk
management. It encompasses more than 150 different risks, many of which are repeated or given too much emphasis. In
light of the above, the audit committee passed a resolution at its 7th ordinary session of 4 April 2014 calling for the
disclosure of risk management to be optimised in the form of a summarised and cleaned-up register.
A slightly modified risk matrix has been prepared for the new risk register. The probabilities of individual risks arising
were placed in timeframes for easier definition. The classes of risk consequences as the second element of risk
assessment were also modified. A new classification of risk categories was drawn up in accordance with international
standards and practices. In the new register risks are divided into strategic risks, operational risks, incidental risks (risks
of hazard), financial risks and reputation risks.
Strategic risks are those that have an impact on the company meeting and realising its vision, its mission statement
and its strategic objectives. The management of these risks is undertaken at the highest level in the company. Ineffective
management of strategic risks can seriously jeopardise the company’s performance and viability.
Operational risks are risks of a loss incurred by inadequate or failed internal processes, people and IT systems, or by
external events. This definition includes legal risk, and excludes strategic risk and reputation risk (Basel II, 2006).
Incidental risks are risks that arise because of certain developments outside the company (the natural environment,
suppliers, customers) or at the company (loss of assets, employees’ actions, etc.).
Financial risks are risks arising in the company’s financial performance and developments in financial market
categories.
Reputation risk is the risk to the company’s revenues or equity as a result of a negative perception of the company by
passengers, business partners, employees or other stakeholders.
In the definitions we aimed as far as possible to associate the risks with the corresponding business processes in which
they arise. Alongside the name of the risks, the risk register also cites the business process in which the risks can be
realised or within the framework of which the risks can be managed.
The register includes an appendix entitled Risk factor management methodology: existing controls and list of
corresponding documents. The appendix cites bylaws, guidelines and other documents for each risk that are to be
applied in the management of the risk in question, and the location where the documents are stored and may be
accessed.
Aerodrom Ljubljana became a member of SI.RISK (the Slovenian Association of Risk Management and Insurance) in
2014, thereby becoming a member of FERMA (the Federation of European Risk Management Associations).
These measures brought the company closer to the comprehensive risk management concept, while taking account of
the specifics of the risk environment in terms of the size and the attributes of the airport and the risks to the company’s
operations. We can coordinate comprehensive risk management with our strategic objectives and business processes,
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Annual Report 2014
developing effective and efficient risk avoidance strategies and integrating them into all of the company’s structures.
Given the link between risk and return (higher returns entail greater risks), risks can also be treated as an opportunity to
increase revenue.
In addition to the register, risk management also makes use of other documents that deal with measures to prevent
harmful developments and the realisation of risks, and that define the methods and measures to rectify the
consequences. These documents are permanent in nature (the incident management rulebook, the business continuity
plan, etc.), and may be tied to a particular project, strategy or similar. The multi-layered approach is evidence that the
company places great emphasis on risk management. The airport business is subject to numerous regulations whose
primary purpose is to increase the safety and security of civil aviation.
The risk management officers reported regularly on risks in their areas of responsibility (for the first and second halves of
the year). There was nothing of particular note, other than a few minor changes related to the overall economic policy
situation and the change in the company’s ownership.
The risk monitoring methods at the company allow for an early warning of changes in risks, and rapid action in the
interim periods between the regular reports. The following are examples of changes in risks identified in 2014 under
each risk category:
Strategic risks: The European Commission decision in favour of Adria Airways reduced the risk of a significant decline
in traffic (the risk of Adria Airways ceasing to operate as a going concern). We nevertheless regularly monitor Adria
Airways’ performance, and undertake marketing activities to retain existing traffic and attract new traffic.
Operational risks: The area of IT risks was notable for the introduction of a new disc system, new units for making
security backups and a new server at the reserve location, which increased the overall reliability of the information
system. In the area of legal risks, all changes in domestic and European legislation that could have an impact on the
company’s operations were monitored, and were appropriately responded to in the form of proposed changes (e.g. the
draft Real Estate Tax Act).
Incidental risks: During the Ebola outbreak we worked with the National Institute of Public Health to take immediate
measures. We also conducted analysis of the transmission of the disease.
Financial risks: We monitored customer payments to ensure that there was no disruption to the inflow, and reacted
promptly to arrears at all levels, from the operational level to board level.
Assessment of the Management Board: risks at the company are well-managed, and the risk management system
allows for the current monitoring of risks and an early warning of new or increased risks.
Incident management
The incident management rulebook sets out the rules and procedures for recording and managing incidents for the
purpose of upgrading risk management and internal controls. An incident entails the realisation of a risk, i.e. an event
that results in material or non-material damage or loss.
Incident management at the company is undertaken by means of the following processes:
gathering information on incidents and guaranteeing anonymity;
processing the gathered information on incidents;
informing the relevant responsible persons of the occurrence of incidents;
determining the causes of incidents;
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Annual Report 2014
mitigating the adverse effects of incidents when they occur;
preventing or reducing the recurrence of incidents (taking measures);
classifying incidents with regard to the most common causes;
classifying incidents with regard to the company’s risk register and the place of occurrence;
reviewing the effectiveness and sufficiency of the measures taken; reporting on incidents to the company’s
management and supervisory bodies and to others;
making staff aware of the importance of reporting information on incidents.
Two types of incident are distinguished:
external incidents, which entail developments over which the company has no influence, and that consequently
have an impact on the occurrence of risks at the company;
internal incidents, which entail developments that happen despite the company’s preventive activities.
Several methods for gathering information on incidents have been put in place, and the company also ensures the
anonymity of reporting for staff, partners and others.
Assessment of the Management Board: incidents are managed effectively. Preventive and corrective measures are
being carried out, appropriate records are being kept, and analysis of incidents is being conducted.
Incident report
The incident report for the second half of 2014 is the implementing act of the Overall strategy of risk management and
system of internal controls. The following were recorded in the second half of 2014:
six internal incidents that had an impact on employee risk, one of which also had an impact on security risk;
14 external incidents that had an impact on the risk of spills, health risks, IT risks, risks on the manoeuvring
areas and aprons, and the risk of an aviation accident at the airport or in its vicinity.
A total 53 birdstrikes were recorded, which had an impact on the risk of the threat presented by the presence of birds
and wildlife.
A safety investigation was ordered when each incident occurred. The reasons for the incidents were sought, and
corrective and preventive measures were drawn up to prevent incidents in the future. Incidents that have an impact on
aircraft safety are processed and recorded in a special operational documentary system.
The corrective measures taken related to the immediate elimination of the reasons for the occurrence of the incidents.
We also carried out preventive measures (incident management in refresher courses for operational personnel,
unannounced in-house assessments/controls of ground handling) to prevent such incidents or similar incidents from
occurring in the future.
All incidents were addressed and successfully concluded. All the measures taken are reasonable.
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Annual Report 2014
6 SUSTAINABLE DEVELOPMENT
The company’s operations and development are planned and executed in a way that supports the development of its
immediate and wider environment and does not result in damaging effects. Prudent and planned attention is given to
nature and the wider environment.
We endeavour to maintain a considerate attitude to our staff, to protect the immediate environment from noise and
pollution, and to manage energy resources carefully. We feel a sense of responsibility for cultivating a social and cultural
environment, for which reason we support social activities, arts and culture, sport, health awareness, knowledge and
education.
Code of ethics
The company’s code of ethics sets out the core principles and rules by which employees, members of the Supervisory
Board, and other persons working at Aerodrom Ljubljana, d.d. are bound to act. Code of ethics comprises the rules and
principles observed at the company to protect employees and the company itself from the risks of breaches, nonperformance or non-observance of contractual principles and other obligations relating to employment, and to protect the
reputation of the company and each member of staff.
The company’s objective is good long-term performance, which in addition to profitability includes a sense of
responsibility to the community and to the environment. We endeavour to meet the highest standards of quality and
satisfaction on the part of employees, users and shareholders.
The purpose of the code of ethics is to provide guidance for acting ethically and morally in relations with internal and
external stakeholders, and to uphold corporate sensibilities.
An ethics committee was established to oversee the implementation of the code of ethics, and its duties encompass the
collection, processing and analysis of written and verbal reports of breaches of ethical conduct or other irregularities at
the company.
The ethics committee did not receive any reports of breaches of the code of ethics in 2014.
Improvements committee
The company established an improvements committee in 2014. Its purpose is to organise the introduction of
improvements in the company’s business. It comprises employees from various departments, who can help to create
diversity in the proposals, and thus in the improvements introduced.
The committee dealt with over 20 proposals for improvement. Certain improvements have already been undertaken, and
the remainder will follow in 2015.
6.1 RESPONSIBILITY TO AIRPORT USERS AND THE GENERAL PUBLIC
Providing the proper information
Aerodrom Ljubljana ensures that internal and external communication is undertaken in a well-planned, systematic
manner. In communicating with the public, we uphold the principles of proactive, fair, transparent and non-discriminatory
communication, and prompt responsiveness. We support the company’s business objectives through communication,
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tailoring them to each group of stakeholders. The primary focus was on passengers and other airport users, the media,
customers, suppliers, investors, staff and the local community.
Through the aforementioned method of communication, we pursue the following objectives:
reinforcing the company’s reputation and credibility;
raising awareness of the company’s identity and competitive advantages;
building trust in the company;
establishing a direct relationship with users, based on dialogue;
emphasising our strengths, positioning the company as a progressive, orderly and development-focused
organisation that intensively monitors trends in aviation, attending to the needs and desires of users, and
providing a comprehensive user experience.
The company drew up and adopted an updated communications strategy in 2014.
Communication with external audiences
We attended to the company’s outward communications in a planned and systematic fashion throughout the year. In so
doing, we upheld the principles of proactive, fair, transparent and non-discriminatory communication, and prompt
responsiveness. Messages and information of relevance were passed to the media, published on the company’s
website, published on SEOnet and Info hramba in accordance with legal requirements, and sent to news subscribers in
newsletter form. A total of 49 such bulletins were drawn up in 2014 (compared with 44 in 2013). We also made regular
announcements on social media platforms, where we averaged one announcement every two days.
We were always prompt and honest in answering questions from media representatives and interested parties. We were
proactive in reporting on all significant developments at the company that were worthy of any attention from the press,
and in responding to questions and requests for statements, comments and interviews.
Six meetings and events were organised for media representatives and other representatives of the public.
The privatisation was the most important theme of communications in 2014. Regular updates were provided to the public
throughout the privatisation period within the framework of the powers and requirements imposed by law. Restricted
information was handled with due care, and we tried to prevent any false rumours from spreading.
The airport celebrated its 50th anniversary in 2014. To open the celebrations passengers were treated to a surprise
performance by the wonderful vocal talents of Perpetuum Jazzile, and an engaging dance show. The slogan for the
celebrations was “50 years at the heart of events”. Passengers were able to take part in prize games, and were given
lucky dip sweets that revealed interesting facts about the airport. Two other notable events in 2014 were the gala
meeting of business partners and friends of Aerodrom Ljubljana, where the honorary address was made by President
Borut Pahor, and the open day of the Fun Airport Festival. The series of events and celebrations marking the 50 th
anniversary concluded with a photography exhibition entitled Fly’s Eye.
In 2014 the company focused sharply on digital communications, which were strengthened and accorded an equal role
alongside other forms of communication. We also strengthened our profile and activities on Facebook, while maintaining
a presence on LinkedIn, and strengthening our presence on YouTube and Foursquare.
Better services through passenger and partner feedback
Our mission is to provide high-quality services to our users, to attend to passengers, and to promote a beneficial and
pleasant business environment for our partners and all stakeholders, for which reason user satisfaction is one of the
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company’s most important objectives. Only by monitoring the needs and wishes of the users of our services can we
determine our own strengths and weaknesses and improve performance and customer satisfaction, as the best indicator
of their satisfaction is the revenue generated.
Through surveys and complaints management the company strives to understand users’ current and future needs, while
it aims not only to meet their requirements, but to exceed their expectations.
In 2014 we handled 116 complaints and 24 instances of positive feedback in line with our official user satisfaction
regulations, which set out the procedures for handling feedback from passengers, visitors to the airport, airlines and
other partners.
All the complaints and instances of positive feedback were handled with due seriousness and officially recorded, the
deficiencies and irregularities were rectified by means of corrective measures, and a response was sent to all
complainants. The handling of complaints and positive feedback contributes over the long term to a constant
improvement in our quality of our service.
In addition to the systematic monitoring of complaints and positive feedback, two other methods are used to support the
determination of user satisfaction. Mystery shopping was used to check the quality of service from the catering
establishments at the airport. The results were good, and even excellent at certain establishments.
Another method for determining passenger opinion of the quality of service at the airport was the fun, user-friendly
Sophie device. By pressing a button corresponding to one of four different levels of satisfaction, customers are able to
express their opinion about the quality of a service or facility in a quick and easy manner. Customer satisfaction with the
check-in procedure was reviewed between January and March, and then between March and August, when passenger
numbers peak at the airport, passenger satisfaction in passing through security was put under the microscope. The
focus in September was passenger satisfaction with advice given in the Duty Free & Travel Value shop, and during
Slovenian month passenger satisfaction with the promotion of Slovenia and Slovenian products was monitored. The
device will also be used in the future to determine the satisfaction of service users in other areas, and with other partners
at the airport.
With the help of this new method of obtaining passenger feedback, the company hopes to measure customer
satisfaction even more effectively. The findings will be useful when it comes to planning new services and facilities or
improving existing ones, ensuring the highest level of quality and an even richer experience for passengers using the
airport.
Our doors are open to visitors
A total of 150 airport tours were conducted in 2014, 30 more than in the previous year. The largest number (59)
comprised tours designed for groups of pre-school and school-age children, whom we try to show the workings of the
airport in short programmes.
Fourteen longer professional tours, with more in-depth explanations and a more detailed presentation of the airport, were
organised for secondary schools and universities (the same as in the previous year). We are continuing the practice of
good cooperation with educational institutions for which we conducted educational tours in connection with airport
activities.
We also hosted 49 volunteer fire services who were given tours of our rescue and fire fighting department and its
equipment.
We also organised two free tours for disabled students from special schools and the Kamnik Municipal Disabled Society.
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In light of good cooperation, we conducted professional tours for companies with which we work, namely two longer
tours for the families of employees of Kompas, and for educational purposes for employees at Intereuropa, SiQ and the
employees of Terme Krka.
The company organised a prize game for its Facebook users entitled Discover the Secrets of the Airport, in which lucky
entrants were able to take part in one of three guided tours organised in conjunction with other departments operating in
the airport zone. Fans of virtual aviation were invited to a tour in the autumn, and given the opportunity to enjoy the
airport experience.
The response to the prize tours was overwhelmingly positive. Our guides earned numerous commendations and thanks
for an interesting presentation of the airport that was unforgettable to many.
6.2 RESPONSIBILITY TO EMPLOYEES
Internal communications
Regular communications and briefings of all current information are provided to employees via the intranet, and a
workers’ assembly was also organised on the central theme of the privatisation of the company. The Management Board
met regularly with the works council, usually once a month, with regular news briefings, and responded promptly to its
initiatives.
A personal meeting with Dr Stefan Schulte, CEO of Fraport, was organised for all employees in November.
Employees were included in the celebrations of Aerodrom Ljubljana’s 50th anniversary, and were informed of all activities
being conducted throughout the year in connection with the anniversary, and with certain celebratory activities designed
specifically for them.
To this end we organised the Fun Airport Festival, a family day visited by more than 600 friends of the airport
(employees, retired company employees, and others working at the airport). The concept of the festival was a fair with
social and educational aspects, with the following objectives:
celebrating the 50th anniversary within the company;
reinforcing the loyalty and allegiance of employees;
upholding the commitments of the family-friendly company programme.
The festival, at which 18 short tours were conducted, gave a behind-the-scenes view of the airport, various departments
and some of the company’s sponsors. The Fun Airport Festival was given an excellent reception by employees and also
by the wider public. Visitors enjoyed the socialising, and got their nearest and dearest thoroughly involved in the airport’s
affairs. We will endeavour to make a tradition of the event.
To mark the anniversary employees were given a badge in the shape of the Aerodrom Ljubljana logo, and a special
certificate. Employees all received a letter thanking them for their contribution to the company’s performance and
development. A short video was made using the impressions and anecdotes of Aerodrom Ljubljana employees and
colleagues.
Social events were organised for employees and colleagues, as in every year. The company demonstrated its concern
for female colleagues with a show for International Women’s Day. This year’s new year party gave prominence to the
50th anniversary and its slogan (At the heart of events), for which reason it was held at the airport’s passenger terminal.
A show was organised for children of employees in one of the hangars in December, with a chance to meet Grandfather
Frost. Two sports events were organised in conjunction with the works council. The company financed employees’
registration fees in two marathons as part of its health drive.
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A family-friendly company
The company continued its 12 family-friendly company measures in 2014 (newborn gift, holidays for schoolchildren, life
balance team for coordinating professional and family life, employee surveys of work/family balance, managerial training
in work/family balance, individual career development plans, communication with employees, communication with
outsiders, work according to special schedules, reduced work hours for family obligations and work hours matched to
phase of life, children’s time bonus, open doors day) to make it as easy as possible for employees to switch between
their professional lives and their private lives.
We are aware that these investments in human capital are vital to the company’s competitiveness.
Safety at work
We comply with all legislation and act with moral values and the diligence of a good manager in safeguarding
occupational health and safety. Staff use advanced personal protective equipment of the prescribed standard in their
work, which is upgraded as appropriate with regard to changes in the situation and the associated risks. Equipment must
provide effective protection for staff, and should be comfortable at the same time. The opinions of the staff are vital,
whether expressed via works council representatives, via their managers or directly.
Last year’s Ebola outbreak was another warning of the importance of a fast, effective response to an emergency.
Planning, the procurement of adequate additional protective equipment and staff training are the key activities in
occupational health and safety.
We are continually modernising our airport equipment to ease the work of the staff. In 2014 we upgraded the vehicle
fleet of the fire and rescue department with a new fire-fighting vehicle, which will make the fire-fighters more effective,
while improving the safety, mobility and comfort of users. The conveyor belt supplied in the first half of the year also
showed excellent results: its use sharply reduces the workload of staff in lifting baggage and cargo from a crouching or
bending position in low, tight aircraft baggage compartments. The workload for staff at the cargo warehouse who pack
cargo consignments was eased by a hydraulic device on a forklift and a roller transporter. The end of the year saw work
start on the construction of an additional level ramp at the cargo warehouse that will allow for the safer but quicker
loading and unloading of freight vehicles.
The inspection and testing of equipment are carried out according to the regulations in this area. More than 250
equipment inspections by certified external organisations and 250 equipment inspections by the company’s own staff
were conducted in 2014. The company gives great credence to drawing up proper instructions, training staff and testing
their knowledge, and conducting on-the-job controls.
The company’s focus in promoting good health is in the organisation of various recreational events and activities. A
variety of sporting activities and sports days were organised, and the company sponsored a number of staff teams in
football, volleyball, etc. At the end of the year we embarked on the process of establishing a sports society to bring
added value to the healthy and effective work team. We are also working on a way of involving and encouraging staff in
corporate volunteer work and solidarity, as the company is aware of the importance of its role for the environment in
which we operate, while this will also foster staff commitment.
Good diet is in any case a major factor in good health, and to this end healthy meals are provided for employees at the
airport restaurant.
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6.3 RESPONSIBILITY TO THE SOCIAL ENVIRONMENT
We pursue a set sponsorship and donations policy
Our sponsorship and donation policy followed the substantive and financial guidelines of previous year. No new
organisations were included in the sponsorship programme, but we did maintain the basic guidelines. Aerodrom
Ljubljana’s sponsorship and donation activities are built on three pillars: sport, art and culture, and humanitarian
activities. We strive to link the activity of the projects and individuals it supports with our own business activities and the
local environment in which we operate, while searching for communication effects therein.
We are continuing to sponsor Slovenia’s Nordic skiing team and the Olympic team. Lesser amounts were earmarked to
support certain other sporting events, local sporting associations and talented individuals.
We primarily expressed our commitment to art and culture through projects exhibited in the passenger terminal, whose
images and ideas provided both pleasure and food for thought for passengers. We are one of the sponsors of the main
summer event in the capital, the Ljubljana Festival. We also made donations to humanitarian, cultural and healthcare
institutions, and to associations in neighbouring communities.
6.4 RESPONSIBILITY TO THE NATURAL ENVIRONMENT
By pursuing our environmental policy we make a contribution to the sustainable development of the local region and
society as a whole; in so doing we uphold the basic commitments and fundamental principles of environmentally
responsible behaviour and undertake to use natural resources responsibly and to protect the environment for the benefit
and good of present and future generations.
In accordance with the basic commitments, the fundamental principles and the requirements of laws and regulations, we
have drawn up strategic environmental targets, which are now part of the company’s sustainability strategy. The main
strategic targets in the key environmental areas in the period to 2020 are:
An environmental management system
The establishment of a documented environmental management system (ISO 14001),
Noise protection
The management of noise at a level that gives local residents better quality of life.
The changeover to a low-carbon society
Carbon neutrality (Airport Carbon Accreditation scheme),
Waste management
100% separation of recyclable materials from waste.
Wastewater management
Connection of the sewage system to the public network (to the central treatment plant in Domžale).
Energy efficiency
Reducing the use of energy products that harm the environment (heating oil, petrol, diesel, thermal electricity)
and replacing them with more environmentally acceptable forms of energy (natural gas, renewables).
Renewables
An increase in the relative use of renewable energy: hydro, geothermal, solar, wind, biomass, biogas.
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Environmental management system
At the company we are endeavouring to permanently reduce the harmful impact of our activities on the environment. To
this end we have introduced and maintained an environmental management system that attends to the main
environmental aspects and impacts, and allows for appropriate environmental targets and programmes to be formulated.
The environmental management system, which is set out by the company’s official environmental management rules,
encompasses the requirements of the ISO 14001 standard, including the most important, namely the principle of
continual improvement in the environmental effect.
Here it is emphasised that each and every employee at the company is responsible for protecting and preserving the
environment. We can also state that our business partners have been informed of the aforementioned policy, and
encourage the principles of good environmental practice.
The company has stepped up its continuous efforts to reduce the harmful effects of its activities on the environment by
implementing measures aimed at creating a green office, as a result of which it was awarded a European Green Office
certificate in 2013 (which was renewed in 2014) and a special award for the best green office management system. The
company’s environmental policy has been enriched through the introduction of green practices in the field of office work.
In parallel with the European Green Office project, the company first measured its carbon footprint in 2013 (for 2012) and
successfully completed the first level of ACA (Airport Carbon Accreditation) certification (which was renewed in 2014),
within the framework of an initiative from ACI Europe for the reduction of greenhouse gases in aviation. The ACI Europe
certification is the only institutionally recognised standard for certification in the field of managing the carbon footprint of
airports.
Breakdown of emissions by source
Transport to work, 9.3%
Work-related travel, 0.4%
Heating, 18.1%
Generators, 0.1%
In-house vehicle fleet, 10.1%
Electricity, 62.0%
The company’s calculated footprint (for 2013) revealed its electricity consumption to be the largest individual source of
emissions (62% of the total), followed by heating (18.1%), the in-house vehicle fleet (10.1%), transport to work (9.3%),
work-related travel (0.4%) and generators (0.1%).
Noise protection
Our systematic approach to monitoring and measuring noise, with continual noise measurements in the immediate
vicinity of the airport, was put in place in December 2008. We have thus joined a number of European airports in
applying similar forms of noise control.
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Measurements, in line with EU directives and binding international regulations, were carried out at four of the most
exposed points (settlements) below the flights paths. The results obtained in this manner indicate that air traffic noise, as
an average monthly indicator, fluctuated below the prescribed environmental noise pollution limits. Just one of the
measurement points saw the noise limits reached, primarily in the evening (in summer), when traffic is heaviest. The
nocturnal noise indicators were not transgressed, as a result of an agreement with the local authorities to restrict night
flights over residential areas.
In 2014 the noise measurement system was moved from Lahovče to Kranj, as the results were constantly below the
noise limits. The move will allow the company to monitor noise in the Kranj area, which is overflown by a certain number
of flights under the new take-off procedure that entered into use in 2013.
An environmental permit for noise emissions caused by the operation of Ljubljana Jože Pučnik Airport was received on
11 November 2010 (and is valid for five years).
We also aim to inform the local residents as much as possible about noise measurements and in addition to publishing
quarterly reports we have an interactive application on website through which average indicators of the noise produced
by aircraft flying over residential areas during takeoff and landing can be monitored.
In conjunction with the local authority of Šenčur we are planning to erect natural anti-noise barriers to further reduce the
noise load on local residents.
An assessment of the noise load on the environment under observation that is the result of the operation of Ljubljana
Jože Pučnik Airport is collated in the graphs and map below (source: ZVD d.o.o.).
Average day-evening-night noise indicators at measurement sites
NOISE INDICATOR Lden FOR 2014
60
55
50
45
40
Šenčur Beleharjeva cesta
Lokarje
Lahovče
Šenčur Rožna ulica
Lden - noise limits
35
Jan
Feb
Mar
Apr
May
Jun
Jul
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Aug
Sep
Oct
Nov
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Annual Report 2014
Average night noise indicators at measurement sites
NOISE INDICATOR Lnight FOR 2014
50
45
40
35
30
Šenčur Beleharjeva cesta
Lokarje
Lahovče
Šenčur Rožna ulica
Lnight - noise limits
25
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Noise map: night and day-evening-night noise indicator for 24 hours
Air protection
To reduce energy consumption and harmful emissions, in the final quarter of 2013 we succeeded in switching over to
natural gas (for all buildings other than the ground handling hangars and building 38), thus replacing the more
environmentally damaging heating oil. The company used 231,977 m3 of natural gas, 3,080 m3 of LPG and 2,657 litres of
heating oil in 2014.
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Annual Report 2014
The centralised control system provides for optimal heating, and thus directly reduces atmospheric emissions. We are
also reducing harmful atmospheric emissions by gradually replacing old cooling appliances with new appliances using
environment-friendly freons.
Another one of our strategic objectives is to gradually become a low-carbon company. We will maintain our commitment
to calculating our carbon footprint every year, including all direct and indirect greenhouse gas emissions.
In order to make it easier to achieve the aforementioned objective, we will continue reducing our use of energy products
that harm the environment (heating oil, petrol, diesel, electricity from thermal power stations), replacing them with more
environmentally acceptable forms of energy (natural gas, LPG, electricity from hydro stations) and using more
renewables (hydro, geothermal, solar, wind, biomass, biogas, co-generation).
Waste management
The company has adopted a Waste management plan for the 2012 to 2015 period, which sets out our methods of waste
management. A particular focus is the strict separation of all types of waste, as we aim to meet the following targets:
to reduce the quantity of mixed municipal waste;
to increase the quantity of separated waste collected and processed;
to prevent hazardous wastes being mixed with non-hazardous wastes;
to keep our environment clean for future generations.
The main objective that we want to achieve is to significantly reduce the quantity of mixed municipal waste, and so we
collect waste separately in different fractions: paper and cardboard, packaging, glass, metals, biodegradable waste,
bulbs, oil, cartridges, dead batteries, reject electrical and electronic appliances, scrap tyres, sewage treatment sludge,
etc. To ensure separated waste collection we positioned a central eco-island, and other smaller collection points.
The waste management system at the company works by leaving the separated waste for collection by various waste
managers, or by delivering it to them. All the waste managers hold the requisite environmental permits and/or
certification of registration with the Slovenian Environment Agency. We also keep the requisite records for all types of
waste, and report annually to the aforementioned agency on the quantities of waste generated.
Particular attention is devoted to construction waste generated during reconstruction or new build. It is delivered to a
construction waste collector or a construction waste processor. The quantities of this type of waste are also reported
regularly to the Slovenian Environment Agency. A total of 280.7 tonnes of construction waste was generated by
construction and refurbishment work in 2014.
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Quantities and types of waste
Municipal waste
Septic tank sludge
Packaging
Mixed metals
Scrap tyres
Waste oils and
lubricants
Lead batteries
0%
10%
20%
30%
2014
40%
2013
2012
50%
2011
2010
60%
70%
80%
Proportion of waste in %
Water protection
Particular attention is devoted to ensuring that the small municipal treatment plant (SMTP) operates without disruption,
thereby ensuring that the quality of the water discharged from the airport complex into the groundwater is acceptable. To
this end we keep appropriate records of daily inspections and observations, and any interventions made. The SMTP’s
environmental operating permit is valid until 21 October 2019. Work was also completed in 2014 on the construction of
the sewage collector to Spodnji Brnik, which will meet the condition of connecting to the Domžale central treatment plant
as planned in conjunction with the Municipality of Cerklje in 2015.
The SMTP treats all faecal sewage, both from the airport itself and from aircraft. Special machines are used to pump
sewage from aircraft, which is then deposited in a special collector at the treatment plant, where biodegradation
processes begin. Waste fluids generated during aircraft deicing, which contains deicing fluid, are also collected and
treated at the SMTP. The procedure is carried out on the main apron, and the waste fluids flow into an underground
reservoir below the apron, from where they are conveyed in a controlled manner to the SMTP. The deicing fluid is based
on biodegradable glycols. The procedures at the SMTP generate approximately 40 to 60 tonnes of sludge annually,
which is collected and further processed by a local waste management provider. Approximately 110 tonnes of sludge
were generated in 2014 in periodic deep treatment at the SMTP.
Wastewater quality at the SMTP is also monitored by an external contractor, which takes samples of wastewater from
the SMTP and samples of water from the oil and fat traps once a year for biological and chemical analysis. On this basis
the contractor draws up a report of operational monitoring for the year as a whole, which is submitted to the Slovenian
Environment Agency. The measurements made in 2014 show our wastewater treatment results to be above-average.
Oil and fat traps installed on and alongside the asphalt surfaces prevent oil and fats from leaching into the groundwater
during any spills, and they are inspected, cleaned and maintained regularly. Logs are kept of the inspections to ensure
the traceability of the work performed.
The replacement of 34 existing oil traps was also completed in 2014 and their conversion to the SIST EN 858-2 standard
through the installation of coalescing filters.
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Light pollution
We ensure that our lighting complies with regulations on light pollution. Each year we replace non-compliant lighting with
newer models that do not emit light upwards and use more advanced technologies (e.g. LEDs).
Land management
Another part of our activities involves the integral management of the land in the airport complex. Grass areas are
regularly cut, we maintain well-kept lawns and flower beds, and we have very good cooperation with an external
contractor under whose guidance we carry out clearance and repair work in forest areas and ensure that forest pests are
controlled.
6.5 RESPONSIBILITY FOR SAFETY
Security
Civil aviation security is the duty of every employee or user of the airport, and we again provided regular training in this
area in 2014. The largest number of courses (16, of which one was at Portorož Airport) were in Security Awareness
Training, which were attended by 251 participants. We also provided a 28-hour training course for airport security
officers, which was attended by 13 officers who took practical and theory examinations.
The first training programmes for persons with general responsibility (heads of security) and persons implementing
security controls (supervisors) were provided in 2014, in accordance with the special training programme approved by
the Civil Aviation Agency. Four training programmes were provided, and were attended by 26 participants. We also
provided four training programmes for persons who conduct security controls of cargo and mail or who have access to
specific types of air cargo, and persons who conduct security control of inventories of in-flight supplies and inventories of
airport supplies, which were attended by 95 participants. Four training programmes were also provided for persons who
conduct security inspections of inventories of airport supplies and inventories of in-flight supplies, which were attended
by 50 participants.
In light of the numerous new regulations passed in the last three years, and the resulting changes in civil aviation
security, a new Aviation Security Programme for Ljubljana Jože Pučnik Airport was drawn up in 2014. The programme
was submitted to the Civil Aviation Agency for approval, which was duly received.
A new Decree on defence planning (Official Gazette of the Republic of Slovenia, No. 51/13) was adopted in the area of
civil defence, which for the institutions responsible for defence planning sets out the scope and content of defence
planning for the functioning of the defence system during a state of emergency, war or crisis. Because Aerodrom
Ljubljana is defined by a Slovenian government resolution as a company of vital importance to the defence of the realm,
a new defence plan was drawn up in accordance with the guidelines received from the Ministry of Infrastructure and
Spatial Planning.
Aerodrom Ljubljana awarded three service companies known supplier status in late 2014, while two companies had this
status revoked for reason of non-supply. Nine companies currently have known supplier status at the airport.
As part of our quality assurance in civil aviation security, we conducted internal controls to check how individual civil
aviation security measures are being implemented. A total of nine internal controls were conducted, while the Civil
Aviation Agency conducted 15 controls. In September its representatives conducted a comprehensive assessment of
compliance with legislation in civil aviation security. Because several airport departments (companies) were included in
the assessment, all those where instances of non-compliance were identified were called on to rectify them at the
earliest opportunity. Follow-up controls were conducted in all instances to confirm that the measures comply with
regulations.
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In late January 2014 the entry into force of Regulation (EU) No 236/2013 of 19 March 2013 implemented a partial
overturn of the ban on bringing liquids onto aircraft that had been in place since 2006. New equipment for screening
liquids, aerosols and gels was procured to this end, and two x-ray machines were also upgraded. In practice, given the
relatively low number of cases (the partial overturn applies solely to transfer passengers carrying liquids purchased in
the departure airport), there has not been a reduction in speed of flow.
Operators at the security operations centre received, processed and forwarded 3,280 notices in 2014, up 7% on the
previous year’s figure of 3,065. As part of the upgrades to the technical security system, the projects to install video
surveillance in the area of transformer station 6 and to install a thermal imaging camera to monitor people and vehicles
crossing from the Adria Airways apron to the main airport apron were completed. In conjunction with the aeroengineering department and an outside contractor, a snapshot was taken of the state of the entire technical security
system, which will form the basis for further projects and investments in this area.
The replacement of switches and recorders for IP cameras from the first phase of the new passenger terminal (installed
in 2007) was scheduled for 2014, but the investment was postponed until 2015. A test radar rig was installed on the
western edge of the main airport apron in November and December to monitor the movement of people and vehicles in
the area. The installation worked properly in all weather conditions, giving the operators good surveillance of the
movement of people and vehicles in the area.
Student traffic officers assisted operators in regulating traffic in front of the terminal. This resulted in a total of 5,700
hours of student work in 2014, up just over 3% on the previous year’s figure of 5,520 hours. The rise in the number of
hours was also related to the additional work obligations assumed by traffic officers, namely the tidying of baggage
trolleys inside and in front of the passenger terminal and in the parking zones. A failure to follow traffic officers’
instructions is a notable feature of traffic regulation. It is felt that traffic immediately in front of the passenger terminal
needs a thorough change, and needs to be addressed at company level.
Safety
A total of 54 safety investigations were processed in 2014 in the SMS Galiot operational documentation system, of which
36 had been completed by the end of the year.
Three safety bulletins, 14 safety notices and 14 safety alerts were issued as part of our safety communications.
A revision (version 4.0) to the guidelines for the functioning of operational departments in conditions of reduced visibility
at the airport was made in conjunction with the traffic-technical division. In the implementation of the safety management
system (SMS), the second phase of the introduction of the SMS was completed and the third phase begun, several
workshops were organised for representatives of various operational departments at the airport (preparation of a safety
list and the associated individual risks according to the description of the airport system).
We participated in the formulation of an assessment of Aerodrom Ljubljana’s compliance risk in respect of the
requirements of Regulation (EU) No 73/2010 (ADQ). UK-based Mileridge was the contractor. Under a Civil Aviation
Agency resolution of 12 September 2014, the Aerodrom Ljubljana safety representative (the deputy-head of the ADQ
implementation project) was included alongside the aircraft technology representative in the CAA working group for the
implementation of Regulation (EU) No 73/2010 (ADQ) in Slovenia.
We actively participated in the project for the partial renovation of the main airport apron (first phase: renovation of the
TWY E1, continuation of first phase: service road). Four ordinary meetings of the aviation safety advisory group (ASAG)
at Ljubljana Jože Pučnik Airport were organised. The ASAG also covers the requirements under the local safety group
for the RWY Local Safety Team.
There were no incidents of damage to aircraft during ground handling or of unauthorised runway incursion in 2014. Four
instances of damage to ground handling assets and vehicles occurred.
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Airport and aircraft fire safety
Accident statistics show that aviation is one of the safest forms of transport. The risk of an aviation accident at the airport
is ever-present, even if the likelihood of an accident is small. The Aviation Act therefore makes it mandatory for the
airport to operate a fire rescue service.
The main objective of the fire rescue service is to save human lives in the event of an aviation accident or incident. The
department again focused all its activities on achieving this objective in 2014. The legal requirements in this area focus
on the regular maintenance of vehicles and fire and rescue equipment, and on the training of personnel, and the
company met these requirements.
Eight fire-fighters passed a three-day aviation fire-fighting course abroad (the TCA training centre at Leipzig Airport),
while four employees successfully completed their professional fire-fighting training at the Training Centre for Civil
Protection and Disaster Relief in Ig. We also strengthened our cooperation with local fire services, the Ministry of
Defence and the Kranj Fire Department. The purpose of this cooperation is to exchange practical and theoretical
knowledge of fire-fighting and rescue and to coordinate actions in the event of an emergency at the airport.
In-house training in fire safety was organised for all Aerodrom Ljubljana staff and for employees of other companies at
the airport.
We also participated in several conferences on fire safety. As part of employees’ preparations for examinations to obtain
or renew the licence for fire safety work on aircraft and at the airport, we organised several fire-fighting and rescue drills
to test the readiness, responsiveness and capabilities of staff and equipment in acting quickly and effectively in
emergencies in the event of an aviation accident.
In addition to the constant readiness for fire-fighting and rescue in aviation incidents, our fire safety programme also
covers a variety of fire safety measures to protect buildings at the airport. We conducted regular fire patrols of the
buildings and staffed the automated fire alarm system 24 hours a day, 365 days a year, and responded to all fire alarms.
In conjunction with official inspectors, we examined our active fire safety systems, such as the automatic fire alert
system, safety lighting, flammable gas detection and alert equipment, and fire traps, and received certification that they
were functioning faultlessly.
We regularly reviewed the airport’s primary and secondary hydrant networks to ensure their faultless functioning,
inspected over 300 hydrants and made service inspections of around a thousand handheld and portable extinguishers.
We provided fire watches to take preventive measures during any work on infrastructure at the airport that could
constitute a fire hazard. In such work we have a standard procedure for briefing those carrying out the work with the
requirements of safe work and cooperation with the airport fire-fighting unit.
Reducing the danger presented by birds
In 2014 the security and safety department was included in the operational work of the nascent airport management and
control department, within which the manoeuvring area controller (MAC) operates. The latter obtained a permit from the
CAA for the use of a handheld laser for driving off birds, which is an additional birdstrike prevention method in certain
natural conditions. In the asset acquisition plan for 2015 the security and safety department proposed the purchase of
three portable remote-controlled gas cannons for the work of the MAC as an additional active measure for driving off
birds from the runway. A plan to acquire two cannons was approved, and will be carried out in 2015.
The security and safety department also put forward suggestions in the management of grass areas in the airport zone,
with the aim of reducing bird presence at the airport. The company purchased a special mower for cutting grass to a
specific height, and a separate roller for rolling and deep-spiking turf. Unfortunately this cutting did not bring the
anticipated effects (cover from birds of prey in the air and on the ground).
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There was a rise in the number of birdstrikes on the risk assessment red list (unacceptable) in 2014 (the annual risk
assessment is conducted by the security and safety department for the current five-year period). The number of buzzard
strikes rose from eight in 2013 to 20, while the number of kestrel strikes was unchanged at 24. The number of barn
swallow and house martin strikes also rose, as they are nesting more frequently in airport buildings. We succeeded in
removing the grey heron from the risk assessment red list in 2014.
6.6 RESPONSIBILITY FOR QUALITY ASSURANCE
Ensuring a high level of safety and quality in the provision of services is vital to the company’s long-term success, since
the security and safety of passengers and aircraft movements are of key importance to retaining current business
partners and attracting new ones.
Quality standards in the implementation of services and security measures
As an infrastructural facility, the airport is subject to ICAO (International Civil Aviation Organisation) standards and
recommendations, which establish the foundations for infrastructure, work organisation, operations and oversight. Annex
14 (Aerodromes) lays down in detail the planning, construction and maintenance of the entire airport infrastructure,
Annex 9 (Facilitation) defines the capacities and procedures for the carriage of passengers, baggage and cargo by air,
Annex 16 (Environmental) sets out the environmental protection requirements, while Annex 17 (Security) sets out vital
security requirements.
Airport safety standards are also set out by the European Civil Aviation Conference (ECAC), of which the Joint Aviation
Authorities (JAA) is an associated body. The JAA issues Joint Aviation Requirements (JAR), while air carriers are
responsible for their consistent implementation.
Ground handling services standards are laid down by the International Air Transport Association (IATA), which publishes
an updated version of the Airport Handling Manual (AHM) every year. This document contains the basic guidelines for
overall ground handling services supplied to aircraft.
External oversight of airport safety and the quality of service, with reference to observance of the abovementioned
standards, is carried out by the organisations that set standards for airports, ground handling services and safety, and by
air carriers themselves. The latter monitor the quality of ground handling services for aircraft, passengers and cargo with
reference to the standards adopted by their umbrella organisation the IATA, through the Civil Aviation Directorate and via
the Civil Aviation Agency. We also conduct regular in-house professional supervision.
Quality management system
Our quality management system encompasses the optimisation of business processes, improvements to quality of
service, and increases in user satisfaction.
The company has ISO 9001:2008 certification, proof that it meets the quality management requirements of the ISO.
Receipt of the aforementioned certificate is confirmation of the achievement of a high level of quality in the company’s
services, constant improvement and the efficient operations of the company. The certificate covers the management of
the airport, ground handling for passengers, aircraft and cargo, and the marketing and sale of airport services, ground
handling services and commercial services.
For the retention of the certificate we uphold quality principles, for which reason:
we have adopted a quality policy and a quality management manual;
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we have organised the company’s documentation, and also manage its external documentation;
we systematically measure user satisfaction (management of complaints and positive feedback, surveys,
mystery shopping, Sophie measurements), thereby raising our quality of service;
we manage the company’s business processes;
we conduct internal assessments and controls of ground handling to ensure compliance;
we take corrective measures to rectify non-compliance and measures to prevent non-compliances and errors
from arising.
The certified quality management system has raised the company’s reputation in the broader sense, has ensured
improved market competitiveness on the grounds of higher quality of service, and has consequently increased user
satisfaction. We will work ceaselessly to improve the entire company’s operations to retain our certification.
EFQM business excellence
We have upgraded the quality management system by applying the principles of the EFQM (European Foundation for
Quality Management) business excellence model and the PRSPO (Slovenian business excellence award) to our
business. The purpose of introducing this model is to carry out processes of ceaseless improvement in all the company’s
key areas, thereby achieving an improvement in results and developing sustained excellence.
In the first phase of the introduction of the excellence model we conducted a self-assessment of leadership and the staff,
and drew up an action plan. We will subsequently draw up a self-assessment and action plans for other divisions of the
company.
Management of business processes
We manage more than 70 business processes in various positions in the company’s process scheme. Each business
process has a specific owner or custodian, and persons responsible for carrying out individual activities within the
process. Contacts between different processes were also identified and defined. Each business process also includes
reference documentation as the basis for its implementation.
The management of business processes will next see the definition of a matrix of responsibilities, efficiency and
performance indicators, and methods for controlling and measuring efficiency. This will allow us to monitor actions, to
determine the stability of the processes and to analyse the possibilities of improving the processes. The proper
management of business processes will allow the company to increase its efficiency.
The business processes at Aerodrom Ljubljana are divided into three areas:
management processes (management of the company, management of divisions, departments and projects,
management of the environmental management system and energy management system, occupational health
and safety, internal auditing and risk management);
core processes (airport management processes, ground handling processes, marketing and sales processes),
support processes (procurement, HR, training, development, finance and accounting, IT, PR and legal
support).
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Business continuity
Business continuity is the strategic and tactical ability to plan and to respond to incidents and interruptions to business.
Its purpose is to continue the business processes at a predetermined acceptable level. It is an integral process that tries
to identify the consequences of numerous different undesirable interruptions and risks affecting the company’s operation.
The purpose of the process is to reduce the consequences if the entire company or the work of the company is
interrupted.
The Aerodrom Ljubljana, d.d. Business Continuity Plan is a documented collection of procedures and information that
has been formulated and compiled and is always available during unexpected events so that the company is able to
continue its key services. The definition of the scope of business continuity took account of the business continuity
requirements, the company’s objectives and commitments, the acceptable level of risk, the legal and contractual
obligations and the interests of key groups (users and stakeholders).
If a major risk is realised, the operation of the airport infrastructure can be temporarily interrupted. Each airline has its
own selection of alternative airports. In light of the resolution defining the system of public airports and current practice in
similar situations, the company can offer its staff and ground operations equipment to one of the neighbouring airports,
which can take over the traffic until the airport reopens. Standing preventive measures ensure the management of risks
that entail a threat to business continuity.
The company’s business continuity plan consists of measures to respond to an emergency, measures for employees
and individual functions critical to business, and descriptions of alternative procedures to resume operations in normal
circumstances. The appendix to the plan describes the systems for releasing information in the event of an interruption
of business or the realisation of a specific risk. They are available to all the company’s employees via the intranet, and
are also available in print form in the operational departments.
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Annual Report 2014
FINANCIAL REPORT
1 DECLARATION BY THE MANAGEMENT BOARD
The declaration by the Management Board may be found in the introduction to the Business Report on page 3.
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Annual Report 2014
2 INDEPENDENT AUDITOR'S REPORT
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3 FINANCIAL STATEMENTS
3.1 BALANCE SHEET
Balance sheet
ASSETS
Notes
Non-current assets
Intangible assets, non-current prepayments and accrued income
Property, plant and equipment
Investments in associates
Non-current financial assets
Non-current operating receivables
Deferred tax assets
Current assets (total)
Current assets excluding prepayments and accrued income
Available-for-sale assets (disposal groups)
Inventories
Current financial assets
Current operating receivables
Cash and cash equivalents
Currrent prepayments and accrued income
5.1.1
5.1.2
5.1.3
5.1.4
5.1.5
5.1.6
5.1.7
5.1.8
EQUITY AND LIABILITIES
Shareholder equity
Issued capital
Share premium
Profit reserves
Revaluation surplus
Retained earnings
5.1.9
Non-current liabilities (total)
Provisions and non-current accruals and deferred income
Provisions for jubilee benefits and termination benefits
Non-current accruals and deferred income
Non-current liabilities
Non-current operating liabilities
Current liabilities (total)
Current liabilities
Current operating liabilities
Current accruals and deferred income
31.12.2014
106,075,424
in euros
31.12.2013
131,027,281
92,228,198
8,885,111
78,950,711
0
3,431,189
59,873
901,314
91,930,837
2,126,258
79,512,848
3,147,369
6,072,657
59,873
1,011,832
13,847,226
13,800,477
411,392
339,501
8,842,985
4,143,603
62,996
46,749
39,096,444
38,939,133
0
363,678
33,981,640
4,212,034
381,781
157,311
106,075,424
131,027,281
92,781,304
15,842,626
24,287,659
43,933,874
96,059
8,621,086
124,785,005
15,842,626
24,287,659
78,729,212
720,845
5,204,663
8,580,209
1,359,847
1,244,604
115,243
7,220,362
7,220,362
1,935,748
1,134,542
932,070
202,472
801,206
801,206
4,713,911
4,538,217
4,538,217
175,694
4,306,528
4,165,046
4,165,046
141,482
5.1.10
5.1.11
5.1.12
The notes are integral part of the financial statements, and the financial statements should be read in conjunction with them.
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3.2 INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME
5.2.1
5.2.2
1-12.2014
32,048,626
31,827,518
221,108
in euros
1-12.2013
31,265,191
30,986,744
278,447
5.2.3
5.2.4
5.2.5
5.2.6
5.2.7
-25,353,142
-8,390,284
-1,573,616
-6,816,668
-12,185,024
-4,488,359
-289,475
-25,133,164
-8,387,304
-1,746,090
-6,641,214
-11,641,568
-4,519,326
-584,966
Operating profit (EBIT)
6,695,484
6,132,027
Net finance income/expenses
Finance income
Finance expenses
-1,716,044
1,524,834
-3,240,878
-65,127
1,265,495
-1,330,622
4,979,440
6,066,900
-1,187,554
-197,975
-957,339
84,823
3,593,911
5,194,384
1-12.2014
3,593,911
in euros
1-12.2013
5,194,384
-426,992
-2,254,005
-514,449
-2,630,511
561,251
-2,750,646
-1,075,700
120,135
Income statement
Operating revenues
Net sales revenue
Other operating revenues
Notes
Operating expenses
Costs of materials and services
Costs of materials
Costs of services
Labour costs
Depreciation/amortisation
Other operating expenses
5.2.8
5.2.8
Pre-tax profit
Income tax expense
Deferred tax
5.2.9
5.2.9
Net profit for the period
The notes are integral part of the financial statements, and the financial statements should be read in conjunction with them.
Statement of comprehensive income
Net profit for the period
Notes
Items that could subsequently be reclassified to profit or loss
Net gain/(loss) recognised as revaluation surplus in connection with available-for-sale
financial assets
- gain/(loss) recognised as revaluation surplus
- transfer of gain/(loss) from revaluation surplus to profit or loss
Corporate income tax in connection with items that could subsequently be
reclassified to profit or loss
87,457
376,506
- in connection with gain/(loss) recognised as revaluation surplus
-95,412
396,930
- in connection with transfer of gain/(loss) from revaluation surplus to profit or loss
182,869
-20,424
Items that subsequently will not be reclassified to profit or loss
-197,794
0
-197,794
0
-624,786
-2,254,005
2,969,125
2,940,379
Unrealised actuarial profit/loss from post-employment benefits
Total other comprehensive income for the period
5.2.10
Total comprehensive income for the period
The notes are integral part of the financial statements, and the financial statements should be read in conjunction with them.
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3.3 CASH FLOW STATEMENT
2014
in euros
2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit corrected for deferred tax
Adjustment for:
3,791,886
6,127,506
5,109,561
5,036,376
- income tax expense recognised in the income statement
1,187,554
957,339
- amortisation/depreciation of intangible assets and property, plant and equipment
4,488,359
4,519,326
-71,765
190,087
- gain/loss on disposal/elimination of intangible assets and property, plant and equipment
- impairment of inventories
30,023
229
- impairment of receivables
25,222
88,382
- creation/reversal of provisions
56,388
-40,155
-293,289
71,987
-1,512,961
-1,209,214
3,192,843
1,320,268
-974,868
-861,873
9,919,392
-3,261,862
75,552
-5,846
2,306,010
46,732
9,079,978
10,145,937
-682,451
-1,344
-79,617
2,010,012
-230,546
11,161,991
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investing activities
Proceeds from interest and profit participation from investing
Proceeds from disposal of property, plant and equipment
Proceeds from disposal of non-current financial assets
Proceeds from disposal of current financial assets
Outflows from investing activities
Payments for intangible assets
Payments for property, plant and equipment
Payments for non-current financial assets
Payments for current financial assets
Net cash flow from investing activities
104,106,855
526,053
33,077
3,178,233
100,369,492
-78,539,014
-534,237
-2,598,330
-20,865
-75,385,582
25,567,841
63,180,664
1,020,884
103,749
345,848
61,710,183
-71,606,214
-95,432
-8,404,990
-250,000
-62,855,792
-8,425,550
CASH FLOWS FROM FINANCING ACTIVITIES
Outflows from financing activities
Payments for short-term financial liabilities
Dividend payments
Net cash flow from financing activities
-34,969,127
-28,611
-34,940,516
-34,969,127
-2,584,829
0
-2,584,829
-2,584,829
-321,308
381,781
2,523
62,996
151,612
225,290
4,879
381,781
- other non-cash transactions
- finance income
- finance expenses
- income tax expense paid
Cash flow from operating activities, excluding working capital
Change in operating receivables
Change in prepayments and accrued income
Change in inventories
Change in operating liabilities
Change in accruals and deferred income
Net cash flow from operating activities
Net increase in cash and cash equivalents
Opening balance of cash and cash equivalents
Effect of foreign exchange differences on cash and cash equivalents
Cash and cash equivalents at the end of the period
The notes are integral part of the financial statements, and the financial statements should be read in conjunction with them.
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3.4 STATEMENT OF CHANGES IN EQUITY
in euros
Statement of changes in equity
1.1.2013
Net profit from the previous year
Net profit for the period
Other comprehensive income for the period
Payment of dividends
31.12.2013
1.1.2014
Net profit from the previous year
Net profit for the period
Other comprehensive income for the period
Payment of dividends
31.12.2014
Share capital Share premium Legal reserves
15,842,626
24,287,659
4,013,029
0
0
0
0
0
0
0
0
0
0
0
0
15,842,626
24,287,659
4,013,029
15,842,626
0
0
0
0
15,842,626
24,287,659
0
0
0
0
24,287,659
4,013,029
0
0
0
0
4,013,029
The notes are integral part of the financial statements, and the financial statements should be read in conjunction with them.
80
Reserves
under Articles
of Association
12,039,085
0
0
0
0
12,039,085
Other profit
reserves
62,677,098
0
0
0
0
62,677,098
Revaluation
surplus
2,974,850
0
0
-2,254,005
0
720,845
12,039,085
0
0
0
0
12,039,085
62,677,098
0
0
0
-34,795,338
27,881,760
720,845
0
0
-624,786
0
96,059
Retained
earnings
2,205
2,596,524
0
0
-2,588,450
10,279
Net profit for
the financial
year
2,596,524
-2,596,524
5,194,384
0
0
5,194,384
Total equity
124,433,076
0
5,194,384
-2,254,005
-2,588,450
124,785,005
10,279
5,194,384
0
0
-177,488
5,027,175
5,194,384
-5,194,384
3,593,911
0
0
3,593,911
124,785,005
0
3,593,911
-624,786
-34,972,826
92,781,304
Annual Report 2014
4 SIGNIFICANT ACCOUNTING POLICIES
4.1 REPORTING COMPANY
Aerodrom Ljubljana, d.d. (hereinafter: the company) is registered as a legal person domiciled in Slovenia; its registered
address is Zgornji Brnik 130a, 4210 Brnik-Aerodrom.
At its 9th general meeting of shareholders on 30 June 2005 a resolution was passed stating that from 1 January 2006,
the company would compile the financial statements and reports required pursuant to the first paragraph of Article 60 of
the Companies Act (ZGD-1) in accordance with the International Financial Reporting Standards (hereinafter: the IFRS).
The company’s Management Board confirmed the financial statements on 23 February 2015.
4.2 BASIS FOR COMPILING FINANCIAL STATEMENTS
Statement of compliance
The financial statements for 2014 and 2013 were compiled in accordance with the IFRS, as adopted by the European
Union. The accounting and reporting requirements of the IFRS have been applied, as well as the requirements of the
Companies Act and the company’s internal rules.
Basis of measurement
The financial statements have been compiled on an historical cost basis, whereby available-for-sale assets and
available-for-sale financial assets are valued at fair value.
The methods used to measure fair value are described below by category.
Functional and reporting currency
The financial statements and all accounting information have been compiled in euros, the company’s functional currency.
Use of estimates and judgments
In compiling financial statements, the management must make estimates, judgments and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses. The actual
results may differ from these estimates.
The estimates and assumptions must be reviewed on an on-going basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised, and all future years affected by the revision.
Data on significant estimates of uncertainties and critical assumptions prepared by the management in the
implementation of the accounting policies, and which have the greatest impact on the figures in the financial statements,
is described under individual disclosures of policy, the notes below and in the following points:
Point 5 of the Business Report (Financial risks; quantitative data is given in point 5.4 of the Financial Report).
Point 4.3 of the Financial Report in the part setting out the provisions and point 5.1.10 of the Financial Report
(Provisions and non-current accruals and deferred income).
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Annual Report 2014
Point 5.1.4 of the Financial Report in the part describing non-current financial assets.
Point 5.1.6 of the Financial Report in the part describing available-for-sale assets.
4.3 SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied, and the nature and degree of importance are defined in the company’s internal acts. For
all material amounts presented in the financial statements, we also disclosed comparative information from the
preceding period, which is stated in the numerical and descriptive information.
The accounting policies set out below were applied consistently in all periods presented in the attached financial
statements.
Investment in associates
Aerodrom Portorož, d.o.o.
Aerodrom Ljubljana, d.d. owns 30.46% of Aerodrom Portorož, d.o.o. There are no significant transactions between the
two companies, nor is there any exchange of managerial staff or the mutual provision of professional information and
knowledge. The influence of Aerodrom Ljubljana, d.d. on Aerodrom Portorož, d.o.o. is defined in the provisions of the
memorandum of association and is in proportion to the ownership share that the former company has in the latter. In
light of this, Aerodrom Ljubljana, d.d. does not have a dominant or significant influence on Aerodrom Portorož, d.o.o.
Therefore, the investment was valued at historical cost, less any impairment.
Adria Airways Tehnika, d.d.
Aerodrom Ljubljana, d.d. owns 4,570,881 preference shares and 2,423,273 ordinary shares in Adria Airways Tehnika,
d.d., which represents a holding of 47.67% in the company’s equity, is disclosed under investments in associates. The
investment is valued at historical cost, less any impairment.
Aerodrom Ljubljana, d.d.’s influence over Adria Airways Tehnika, d.d. is defined by the articles of association, whereby
Aerodrom Ljubljana, d.d. has a representative on the latter’s board of directors.
Because Adria Airways Tehnika d.d. is in the process of being sold, the investment was disclosed under available-forsale current assets as at 31 December 2014 (see note for point 5.1.6 of the Financial Report).
Foreign currency
Transactions expressed in foreign currency are converted at the European Central Bank (ECB) reference exchange rate
on the day the transaction took place. Cash and cash equivalents and liabilities denominated in foreign currencies on the
balance sheet date are converted to euros according to then valid reference rate of the ECB. Foreign exchange
differences are recognised in the income statement. Non-cash items and liabilities measured according to historical cost
in a foreign currency are converted using the exchange rate on the day of the transaction.
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Financial instruments
Non-derivative financial instruments
Non-derivative financial instruments include investments in shareholder equity (shares and participating interests), debt
instruments, trade and other receivables, cash and cash equivalents, loans issued and granted, and trade and other
liabilities.
Non-derivate financial instruments are initially recognised at their fair value, increased by costs directly relating to the
purchase or issuing of the financial instrument or liability. After initial recognition, non-derivative financial instruments are
measured using the method defined below.
Financial instruments are derecognised when the company’s contractual rights to cash flows expire, or if the company
transfers the financial asset to another party, including control or all risks and rewards of the asset. Purchases and sales
made in a regular or normal manner are charged on the transaction date, i.e. the date the company undertakes to sell or
purchase the asset.
Financial liabilities are derecognised, when the company’s contractual obligation expires, ceases or is terminated.
Cash and cash equivalents include cash on hand and in sight deposits.
The accounting of finance income and finance expenses is described in the point Finance income and finance expenses.
a) Available-for-sale financial assets
The company’s investments in equity (shares and participating interests) and in debt securities are classified as
available-for-sale financial assets. After initial recognition these assets are valued as follows:
according to fair value, or
according to the historical value in the event that a reliable fair value of the investment cannot be measured.
Changes to the fair value of financial assets pursuant to the first indent are recognised directly in shareholder equity.
Upon derecognition (sale or redemption), the associated gain or loss is transferred to the income statement (in finance
income or expenses). Losses due to impairment (see “Impairment”), and positive and negative exchange differences in
available-for-sale financial assets (see “Foreign currency”) are recognised in the income statement.
b) Loans issued and granted
Loans issued and granted are initially recognised according to fair value, reduced by related transaction costs. After
initial recognition, the loans are disclosed at amortised cost, where any differences between the historical and amortised
cost are disclosed in the income statement in the period of loan repayment, using the effective interest rate method.
c) Others
Other non-derivate financial instruments are measured at amortised cost using the effective interest rate method,
reduced by losses due to impairment.
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Annual Report 2014
Derivative financial instruments
The company does not use derivative financial instruments to hedge against risk. It also does not retain or issue
derivative financial instruments for trading purposes.
Property, plant and equipment
Recognition and measurement
Property, plant and equipment are disclosed at historical cost, reduced by the value adjustment for depreciation and any
cumulative loss due to impairment. The historical cost includes costs directly related to purchase of the asset. Items of
property, plant and equipment with different useful lives are treated as components.
In accordance with IFRS 40, we assessed whether any of the company’s property could be considered investment
property. It was established that no property meets the conditions for being classed as investment property.
Subsequent costs
Costs arising subsequently in relation to property, plant and equipment are disclosed as increases in the historical cost
of assets, if their value is increased by future economic benefits. Replacement of individual parts is recognised as
increases in the historical cost of an item of property, plant and equipment, if recognition criteria are met. The carrying
amount of significant replaced parts is derecognised. All other costs in connection with property, plant and equipment
(maintenance costs, servicing costs and similar) are recognised in the income statement as they arise.
Depreciation
Deprecation is calculated using the straight-line method of depreciation, taking into account the useful life of property,
plant and equipment individually. Land is not subject to depreciation.
Property, plant and equipment becomes subject to depreciation when the asset is available and fit for use.
The estimated useful life falls within the following ranges:
Infrastructure (with components)
Computer equipment
Motor vehicles
Other plant and equipment
16.67-40 years
2-10 years
4-12 years
5-20 years
The depreciable amount of assets is determined after deducting the residual value from the historical cost. It is assessed
that the residual value of property, plant and equipment after the end of the useful life does not represent a significant
proportion of the asset, and residual value is therefore not recognised. The estimated useful lives of assets and residual
values are reviewed at the end of each year, and if expectations differ from previous assessments, the change is treated
as a change in accounting estimate.
Intangible assets
Recognition and measurement
Intangible assets are disclosed at their historical cost, reduced by the value adjustment for amortisation and any
cumulative loss due to impairment.
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Annual Report 2014
Subsequent costs
Subsequent costs in connection with intangible assets are only capitalised when they increase the future economic
benefits of the asset to which the costs relate. All other costs are recognised in the income statement as they arise.
Amortisation
Amortisation is calculated using the straight-line method of amortisation, taking into account the useful life of intangible
assets (unless the useful life is not defined; in this case it is necessary to test for impairment on the balance sheet date
at least). The amortisation of intangible assets commences when the asset is available for use.
The estimated useful life for licences and software is between 3 and 10 years. The estimated useful life for superficies is
the same as the period for which superficies has been assigned.
The estimated useful lives of assets and residual values are reviewed at the end of each year, and if expectations differ
from previous assessments, the change is treated as a change in accounting estimates.
Available-for-sale assets
Non-current assets for which it can reasonably be expected that their carrying amount will be settled primarily via sale in
the next 12 months are classified in this category. The period for completion of a sale may be extended to more than 12
months if this delay is caused by events and circumstances that are beyond the control of the company and there is
sufficient evidence that the company is consistently pursuing its plans to dispose of the asset.
Upon reclassification as available-for-sale assets (or a disposal group), assets are recognised at either the carrying
amount or at the fair value less selling costs, whichever is the lower. Should an available-for-sale asset (or disposal
group) be impaired, the impairment is recognised in profit or loss.
Inventories
Inventories include inventories of maintenance materials and inventories of material used for services.
Inventories are initially recognised at historical cost, which comprises the purchase price plus import duties and nonrefundable purchase taxes, and the direct costs of acquisition, minus any discounts received. The method of weighted
average prices is used for the valuation of inventories consumed.
Impairment
If a decrease in the fair value of an available-for-sale financial asset has been recognised directly in shareholder equity
and there is objective evidence that the asset is impaired, the cumulative loss previously recognised in shareholder
equity is removed from shareholder equity and recognised in the income statement. The amount of cumulative loss
removed from shareholder equity and recognised in the income statement is the difference between the historical cost
and the current fair value, reduced by the impairment loss on that financial asset previously recognised in the income
statement.
On the reporting date the company tests the carrying amount of assets, and assesses whether there is any indication of
impairment. If such indications exist, the recoverable amount of the asset must be estimated.
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Annual Report 2014
An impairment loss is recognised when the carrying amount of an asset or cash-generating unit exceeds its recoverable
amount. The impairment is disclosed in the income statement. There are no grounds for impairment if the company is
operating at a profit in line with its business plans and there are no other indications of impairment.
Receivables are revalued for reason of impairment if their carrying amount exceeds their fair value (i.e. the recoverable
amount). Receivables that it may be presumed will not be settled by the standard deadline or settled in full are deemed
doubtful, or disputed if judicial proceedings have been initiated over them. The recoverability of each receivable is
assessed when the adjustment is made. Operating expenses are recognised according to their impairment.
Inventories are impaired if their carrying amount exceeds their market value. Market value means the recoverable
amount, unless this is higher than the net realisable value (in which case the net realisable value is deemed the market
value). Operating expenses are recognised as reductions in inventory value due to impairment.
Calculating the recoverable amount
The recoverable amount of financial assets held-to-maturity and receivables disclosed at amortised cost is calculated as
the present value of estimated future cash flows, discounted at the original effective interest rate (i.e. the effective
interest rate, computed at the initial recognition of these assets). Current receivables are not discounted.
The recoverable amount of other assets is the greater of their net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risk specific to the asset. For assets that do not
generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which
the asset belongs.
Reversal of impairment
An impairment loss in respect of a held-to-maturity security or receivable disclosed at amortised cost is reversed if the
subsequent increase in the recoverable amount can be related objectively to an event occurring after the impairment
loss was recognised.
An impairment loss in respect of a financial asset in a shareholder equity instrument is not reversed via profit or loss. If
the fair value of a debt instrument classified as available-for-sale increases and the increase can be objectively related to
an event occurring after the impairment loss was recognised in the income statement, the impairment is reversed and
the amount of the reversal recognised in the income statement.
In respect of other assets, an impairment loss is reversed if there has been a change in the estimates used to determine
the recoverable amount.
An impairment loss is only reversed to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in
previous years.
Shareholder equity
The company’s total shareholder equity is its liabilities to the owners, which mature for payment, if the company ceases
to be a going concern. It comprises the share capital, share premium, profit reserves, retained net profit or loss brought
forward, and the revaluation surplus. The company’s share capital is divided into ordinary freely transferable registered
no-par value shares and participating preference no-par value shares.
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Annual Report 2014
Dividends
Dividends are recognised as a liability in the period in which the general meeting of shareholders adopted the resolution
on dividend payment.
Provisions
The company discloses provisions in its balance sheet, if due to a past event it has a current legal or constructive
obligation and if it is probable that an outflow of economic benefits will be required to settle the obligation. Where the
effect of the time value of money is material, the value of the provision is determined using the estimated future cash
flows using a pre-tax discount rate that reflects current market assessments of the time value of the money and the risk
specific to the liability.
Provisions for termination benefits and jubilee benefits
In accordance with legislation, the collective agreement, and internal rules, the company is committed to the payment of
jubilee benefits to employees and termination benefits, and provisions are formed for this purpose. The company has no
other pension liabilities.
Accrued and deferred items
Non-current accrued and deferred items
Non-current prepayments and accrued income comprise long-term deferred costs that will be charged against profit or
loss in a period of more than one year.
Long-term deferred income that will be covered by deferred expenses in a period of more than one year is disclosed
under non-current accruals and deferred income. This category includes government grants received for the acquisition
of non-current assets in 1993 and 1994. They are earmarked for covering the costs of the depreciation of the
aforementioned assets.
Current accrued and deferred items
The company discloses short-term accrued income and short-term deferred expenses under current prepayments and
accrued income.
The company discloses short-term deferred income and accrued costs for unused employee leave under current
accruals and deferred income (the amount is determined on the basis of a calculation for each employee separately).
Revenues
Version I of the income statement is used, which provides a sequential report.
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Annual Report 2014
Revenues from services
Revenues from the provision of services are recognised in the income statement when the services are rendered.
Revenues are recognised when they may be reasonably expected to lead to actual receipts, if these have not already
been obtained from the outset, and can be reliably measured. Revenues are not recognised if there is uncertainty
regarding payment for the services.
State aid
State aid is initially recognised in the financial statements as long-term deferred revenues (non-current accruals and
deferred income), when there is reasonable assurance that the company will receive the aid, and the related conditions
will be fulfilled. State aid received to cover expenses is recognised consistently, and very strictly, as revenues for the
period in which the costs they are intended to cover arise. Funds connected to state aid are strictly and consistently
recognised in the income statement under other operating revenues during the useful life of the asset.
Expenses
Expenses are recognised as expenses in the accounting period when they are incurred. They are categorised according
to their nature. They are set out and disclosed by natural types.
Finance income and expenses
Finance income includes interest revenues, dividend income, capital gains from the disposal of available-for-sale
financial assets and positive exchange differences recognised in the income statement.
Interest revenues on financial assets are recognised as they arise using the effective interest rate method. Revenues
from default interest are recognised upon payment. Dividend income is recognised in the income statement on the day
the shareholder’s right to payment is exercised, which for stock-exchange listed companies is generally the ex-dividend
date.
Finance expenses comprise negative exchange rate differences, capital losses from the disposal of available-for-sale
financial assets expenses for impairments of financial assets and expenses relating to bank commissions for managing
financial assets. The costs of interest are recognised in the income statement using the effective interest method.
Income tax expense
Income tax expense comprises current taxes and deferred taxes. Income tax expense is disclosed in profit or loss,
except for the amount of deferred tax that relates to items disclosed directly in equity, in which case it is disclosed in
equity.
Levied tax is tax which is expected to be paid on taxable profit from the financial year, using the tax rates in force or
substantively in force as at the balance sheet date, and any adjustments to the tax liability in relation to past financial
years.
Deferred tax is disclosed using the balance sheet liability method, which takes into account temporary differences
between the carrying amount of an asset or liability and its value for tax purposes. The value of deferred tax depends on
the expected method for recovery or settlement of the carrying amount of an asset or liability using the tax rates in force
or substantively in force as at the balance sheet date.
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Annual Report 2014
Deferred tax receivables are only recognised in the amount for which it is probable that taxable profits will be available,
against which the deferred tax receivable can be utilised. A deferred tax receivable is reduced by the amount for which it
is no longer possible for a tax relief relating to the asset to be applied.
A company must offset deferred tax assets and liabilities when it has a legally enforceable right to offset current tax
assets and liabilities because they are disclosed vis-à-vis the same tax authority.
Earnings per share (EPS)
Basic earnings per share is the ratio of net profit or loss attributable to ordinary shareholders (numerator) to the weighted
average number of ordinary no-par value shares outstanding during the accounting period (denominator).
Net profit attributable to ordinary shareholders is calculated as net profit for the financial year less the amount of
dividends (fixed and variable portions) intended for payment to participating preference no-par value shareholders.
Diluted earnings per share is calculated by adjusting the net profit attributable to ordinary shareholders and the weighted
average number of outstanding ordinary no-par value shares to take into account the effects of all dilutive (potential)
ordinary no-par value shares. This means that the net profit attributable to ordinary shareholders (numerator) is
increased by the payment of dividends to holders of potential ordinary no-par value shares, while the denominator is
increased by the weighted average number of potential ordinary no-par value shares.
A potential ordinary share is a financial instrument or other contract that gives the holder the right to ordinary no-par
value shares. Potential ordinary shares are treated as diluted when their exchange for ordinary no-par shares would
reduce net earnings per share.
Segment reporting
The company monitors revenues and expenses by operating segment. Direct operating revenues and expenses and
indirect operating expenses are recorded for each operating segment. There is no material difference between the
operating segments in terms of the risks described in detail in point 5 of the Business Report.
The company reports for each of the following operating segments: airport services, ground handling services and
commercial services.
The expenses and revenues of an individual segment include items that can be directly attributed to that segment, and
those that can be allocated to the segment on a reasonable basis.
Revenues and expenses in the item “other” include the revenues and expenses of those activities that account for less
than 10% of total revenues.
Assets and liabilities itemised by operating segment are not reported to the company’s managerial staff responsible for
making business decisions. There is also no financial data available for assets and liabilities itemised by operating
segment. For the purposes of disclosure, assets and liabilities are allocated to operating segments in proportion to the
operating revenues generated.
Standards and interpretations effective in the current period
The following standards, amendments to existing standards and interpretations issued by the International Accounting
Standards Board (IASB) and approved by the EU are effective in the current period:
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Annual Report 2014
IFRS 10 Consolidated Financial Statements, approved by the EU on 11 December 2012 (applies to annual
periods beginning on or after 1 January 2014);
IFRS 11 Joint Arrangements, approved by the EU on 11 December 2012 (applies to annual periods beginning
on or after 1 January 2014);
IFRS 12 Disclosure of Interests in Other Entities, approved by the EU on 11 December 2012 (applies to
annual periods beginning on or after 1 January 2014);
IAS 27 Separate Financial Statements (amended 2011), approved by the EU on 11 December 2012 (applies
to annual periods beginning on or after 1 January 2014);
IAS 28 Investments in Associates and Joint Ventures (amended 2011), approved by the EU on 11
December 2012 (applies to annual periods beginning on or after 1 January 2014);
Amendments to IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12
Disclosure of Interests in Other Entities (transition guidance), approved by the EU on 4 April 2013 (apply to
annual periods beginning on or after 1 January 2014);
Amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other
Entities and IAS 27 (amended 2011) Separate Financial Statements (investment entities), approved by the
EU on 20 November 2013 (apply to annual periods beginning on or after 1 January 2014);
Amendments to IAS 32 Financial Instruments: Presentation - Offsetting Financial Assets and Financial
Liabilities, approved by the EU on 13 December 2012 (apply to annual periods beginning on or after 1 January
2014);
Amendments to IAS 36 Impairment of Assets (recoverable amount disclosures for non-financial assets),
approved by the EU on 19 December 2013 (apply to annual periods beginning on or after 1 January 2014);
Amendments to IAS 39 Financial Instruments: Recognition and Measurement (novation of derivatives and
continuation of hedge accounting), approved by the EU on 19 December 2013 (apply to annual periods
beginning on or after 1 January 2014);
The adoption of these amendments and revisions to existing standards did not lead to changes in the company’s
accounting policies.
Standards and interpretations issued by the IASB and approved by the EU but not yet effective
On the day that these financial statements were approved, the following standards, revisions and interpretations had
been issued by the IASB and approved by the EU, but were not yet effective:
Amendments to various standards (Improvements to IFRS, 2010–2012 cycle) proceeding from the project
of annual improvements to the IFRS (IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16, IAS 24 and IAS 38), primarily to
eliminate discrepancies and to provide interpretations, approved by the EU on 17 December 2014 (apply to
annual periods beginning on or after 1 February 2015);
Amendments to various standards (Improvements to IFRS, 2011–2013 cycle) proceeding from the project
of annual improvements to the IFRS (IFRS 1, IFRS 3, IFRS 13 and IAS 40), primarily to eliminate discrepancies
and to provide interpretations, approved by the EU on 18 December 2014 (apply to annual periods beginning
on or after 1 January 2015);
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Annual Report 2014
Amendments to IAS 19 Employee Benefits (defined benefit plans: employee contributions), approved by the
EU on 17 December 2014 (apply to annual periods beginning on or after 1 February 2015);
IFRIC 21 Levies, approved by the EU on 13 June 2014 (applies to annual periods beginning on or after 17
June 2014);
The company expects the adoption of these standards, revisions and interpretations to have no significant impact on its
financial statements during initial application.
Standards and interpretations issued by the IASB but not yet approved by the EU
The IFRS as approved by the EU do not currently differ significantly from the regulations adopted by the IASB, with the
exception of the following standards, revisions to existing standards and interpretations, which as at the date of the
publication of the financial statements (the effective dates cited below apply to the entire IFRS) had not been approved
for application by the EU:
IFRS 9 Financial Instruments (applies to annual periods beginning on or after 1 January 2018);
IFRS 14 Regulatory Deferral Accounts (applies to annual periods beginning on or after 1 January 2016),
IFRS 15 Revenue from Contracts with Customers (applies to annual periods beginning on or after 1 January
2017),
Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and
Joint Ventures (sale or contribution of assets between an investor and its associate or joint venture; apply to
annual periods beginning on or after 1 January 2016);
Amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other
Entities and IAS 28 Investments in Associates and Joint Ventures (investment entities: applying the
consolidation exception; apply to annual periods beginning on or after 1 January 2016),
Amendment to IFRS 11 Joint Arrangements (accounting for acquisitions of interests in joint operations;
applies to annual periods beginning on or after 1 January 2016);
Amendment to IAS 1 Presentation of Financial Statements (disclosure initiative; applies to annual periods
beginning on or after 1 January 2016);
Amendments to IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets (clarification of
acceptable methods of depreciation/amortisation; apply to annual periods beginning on or after 1 January
2016);
Amendments to IAS 16 Property, Plant and Equipment and IAS 41 Agriculture (agriculture: bearer plants;
apply to annual periods beginning on or after 1 January 2016); Amendments to IAS 27 Separate Financial
Statements (equity method in separate financial statements; apply to annual periods beginning on or after 1
January 2016);
Amendments to various standards (Improvements to IFRS, 2012–2014 cycle) proceeding from the project
of annual improvements to the IFRS (IFRS 5, IFRS 7, IFRS 19 and IAS 34), primarily to eliminate discrepancies
and to provide interpretations (the amendments apply to annual periods beginning on or after 1 January 2016).
The company predicts that the adoption of these standards, revisions to existing standards and interpretations will not
have a significant impact on its financial statements during initial adoption.
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Annual Report 2014
5 NOTES TO THE FINANCIAL STATEMENTS
5.1 NOTES TO THE BALANCE SHEET
5.1.1 INTANGIBLE ASSETS AND NON-CURRENT PREPAYMENTS AND ACCRUED INCOME
in euros
Licences,
software Property rights
HISTORICAL COST
31.12.2013
Acquisitions
Capitalisations
Disposals
31.12.2014
IMPAIRMENT
31.12.2013
Capitalisations
Amortisation
Disposals
31.12.2014
CARRYING AMOUNT
31.12.2013
31.12.2014
HISTORICAL COST
31.12.2012
Acquisitions
Capitalisations
Disposals
31.12.2013
IMPAIRMENT
31.12.2012
Capitalisations
Amortisation
Disposals
31.12.2013
CARRYING AMOUNT
31.12.2012
31.12.2013
Intangible
assets in
acquisition
Non-current
prepayments
and accrued
income
Total
1,762,171
0
103,584
0
1,865,755
1,818,387
0
8,264,811
-1,747,848
8,335,350
15,156
8,402,242
-8,368,378
0
49,020
0
37,167
0
0
37,167
3,595,714
8,439,409
17
-1,747,848
10,287,292
1,028,497
0
163,507
0
1,192,004
440,959
17
208,985
-439,784
210,177
0
0
0
0
0
0
0
0
0
0
1,469,456
17
372,492
-439,784
1,402,181
733,674
673,751
1,377,428
8,125,173
15,156
49,020
0
37,167
2,126,258
8,885,111
1,697,591
0
107,411
-42,831
1,762,171
1,747,848
0
70,539
0
1,818,387
27,135
164,992
-176,971
0
15,156
0
0
0
0
0
3,472,574
164,992
979
-42,831
3,595,714
923,511
0
147,817
-42,831
1,028,497
397,110
979
42,870
0
440,959
0
0
0
0
0
0
0
0
0
0
1,320,621
979
190,687
-42,831
1,469,456
774,080
733,674
1,350,738
1,377,428
27,135
15,156
0
0
2,151,953
2,126,258
Intangible assets amounted to EUR 8,885,111 as at 31 December 2014, up EUR 6,758,853 on 31 December 2013. The
increase was the result of the general agreement on mutual relations and the establishment of superficies with regard to
the use of specific land concluded with the Ministry of Infrastructure and Spatial Planning in March 2014. Under the
agreement the company obtained superficies on 248 hectares of land owned by the state that the company uses for its
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Annual Report 2014
core airport activities, part of which is functional land. Superficies was obtained under the agreement for a period of 40
years from 1 January 2014, is valued at EUR 8,263,575, and will be repaid in instalments over the lifetime of the
agreement.9
In parallel with the activation of superficies under the aforementioned agreement, partial superficies obtained in the past
were eliminated from the books of account (also under the aforementioned agreement); the fee for certain superficies in
previous years was paid in full, while payment was made in instalments under one agreement. The total carrying amount
stood at EUR 1,308,064 (a historical cost of EUR 1,747,848 and a revaluation adjustment of EUR 439,784). Under the
agreement credit in the amount of EUR 1,039,184 was issued for the superficies paid but not exercised,
while non-current operating liabilities in the amount of EUR 327,859 for one of the partial superficies being repaid in
instalments expired on 1 January 2014.
5.1.2 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment
Land
Infrastructure
Plant and equipment
Property, plant and equipment in acquisition
Total
2014
14,976,147
50,868,729
8,310,657
4,795,178
78,950,711
9The
in euros
2013
14,869,020
53,047,851
8,036,744
3,559,233
79,512,848
company accordingly disclosed EUR 6,759,260 of non-current operating liabilities and EUR 387,190 of current operating liabilities as at 31
December 2014.
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Annual Report 2014
in euros
Property,
Plan and
plant and
Plant and equipment not equipment in
equipment
in use
acquisition
Land Infrastructure
HISTORICAL COST
31.12.2013
Acquisitions
Capitalisations
Transfer
Disposals and eliminations
31.12.2014
IMPAIRMENT
31.12.2013
Transfer
Capitalisations
Depreciation
Disposals and eliminations
31.12.2014
CARRYING AMOUNT
31.12.2013
31.12.2014
HISTORICAL COST
31.12.2012
Acquisitions
Capitalisations
Transfer
Disposals and eliminations
31.12.2013
IMPAIRMENT
31.12.2012
Transfer
Depreciation
Disposals and eliminations
31.12.2013
CARRYING AMOUNT
31.12.2012
31.12.2013
Total
14,869,020
0
109,466
0
-2,339
14,976,147
110,616,476
0
133,241
0
-10,064
110,739,653
45,097,112
0
2,097,353
-350,982
-488,081
46,355,402
57,418
0
0
350,982
-144,494
263,906
3,559,233
3,574,022
-2,338,077
0
0
4,795,178
174,199,259
3,574,022
1,983
0
-644,978
177,130,286
0
0
0
0
0
0
57,568,625
0
0
2,309,962
-7,663
59,870,924
37,060,368
-350,941
1,984
1,805,905
-472,571
38,044,745
57,418
350,941
0
0
-144,453
263,906
0
0
0
0
0
0
94,686,411
0
1,984
4,115,867
-624,687
98,179,575
14,869,020
14,976,147
53,047,851
50,868,729
8,036,744
8,310,657
0
0
3,559,233
4,795,178
79,512,848
78,950,711
14,270,143
0
907,197
0
-308,320
14,869,020
105,448,958
0
5,980,238
0
-812,720
110,616,476
43,953,633
0
1,545,592
-72,650
-329,463
45,097,112
218,625
0
0
72,650
-233,857
57,418
3,526,820
8,713,310
-8,433,027
0
-247,870
3,559,233
167,418,179
8,713,310
0
0
-1,932,230
174,199,259
0
0
0
0
0
55,993,620
0
2,344,265
-769,260
57,568,625
35,478,173
-73,041
1,984,374
-329,138
37,060,368
216,054
73,041
0
-231,677
57,418
0
0
0
0
0
91,687,847
0
4,328,639
-1,330,075
94,686,411
14,270,143
14,869,020
49,455,338
53,047,851
8,475,460
8,036,744
2,571
0
3,526,820
3,559,233
75,730,332
79,512,848
Property, plant and equipment disclosed by the company as at 31 December 2014 are unencumbered.
Land
As at 31 December 2014 the company owned 34.4 hectares of brownfield and greenfield land in the cadastral
municipalities of Grad, Šenčur, Cerklje na Gorenjskem, Velesovo and Zgornji Brnik.
Land of 510 hectares in the area of Ljubljana’s Jože Pučnik Airport, where the company pursues its core business
activities, became the property of the Republic of Slovenia (the state) during the privatisation of the company and is not
disclosed in the company’s books of account. In connection with this land, an agreement on mutual relations and the
establishment of general superficies was signed in March 2014 with the Ministry of Infrastructure and Spatial Planning
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Annual Report 2014
under which the company obtained superficies on 248 hectares of land owned by the state (explained in detail in point
5.1.1 of the Financial Report). A minority of the remaining area is the airport’s functional land, which will partly be
assigned to use by other users or operators of other infrastructure (Slovenia Control, the Ministry of Defence, the
Ministry of the Interior, Adria Airways, Adria Airways Tehnika, etc.), while the majority of the land will remain under the
management of the Ministry of Infrastructure and Spatial Planning as functional land and a secure zone.
Infrastructure
The increase of EUR 133,421 in infrastructure relates to the refurbishment of commercial and logistics premises
intended for letting.
Plant and equipment
Plant and equipment in the total amount of EUR 2,097,353 was activated in 2014. The majority of this amount
comprises:
Rosenbauer fire-fighting vehicle with pertaining equipment
Conveyor with extendible roller
Snow plough and brush
in euros
2014
888,600
242,204
211,950
Property, plant and equipment in acquisition
As at 31 December 2014 the value of property, plant and equipment in acquisition was EUR 4,795,178. The majority of
this amount comprises:
in euros
2014
2,161,286
960,893
326,980
293,011
275,771
228,908
149,591
New passenger terminal T2
Sewage collector for biological treatment plant
Commercial-logistics zone
Car parks
Renovation of the main airport apron
Temperature sensons on the runway
Road along airport perimeter
The investment in the new T2 passenger terminal was disclosed in the company’s books of account as at 31 December
2014 in the amount of EUR 2,161,286, unchanged from 31 December 2013. The 18th general meeting of 16 September
2013 rejected the signing of the contract for the construction of T2, and the next general meeting of 13 May 2014 then
decided that the company’s financial assets that had been earmarked for the construction of the terminal in the amount
of EUR 35 million would be distributed to the shareholders in the form of dividends. The decision on construction was
therefore left to the new owner, Fraport AG. Fraport expressed an interest in including the existing project documentation
in the planning of future terminal capacity at the airport. In light of the above, and given that all the requisite permits for
the construction of T2 have been obtained, the company is maintaining the investment in the new passenger terminal as
95
Annual Report 2014
active, as the project is still attainable. It is thereby maintaining the possibility of an immediate expansion in infrastructure
and the strengthening of the airport’s competitive position in the international market.
5.1.3 INVESTMENTS IN ASSOCIATES
Aerodrom Portorož, d.o.o.
An investment in a 30.46% participating interest in Aerodrom Portorož, d.o.o. is disclosed in investments in associates.
The nominal value of the investment is EUR 1,251,878. On the basis of appropriate impairment testing, the company
created impairment in the entire amount in 2009.
Adria Airways Tehnika, d.d.
An investment in Adria Airways Tehnika, d.d., in which Aerodrom Ljubljana, d.d. holds an interest of 47.67%, is as at 31
December 2014 disclosed under current available-for-sale assets (point 5.1.6 of the Financial Report).
The two investments in associates are described in detail in point 1.5.5 of the Business Report and point 4.3 and point
5.5.2 of the Financial Report.
5.1.4 NON-CURRENT FINANCIAL ASSETS
Non-current financial assets
Available-for-sale financial assets
Long-term loans
Total
2014
3,409,910
21,279
3,431,189
Non-current financial assets
Available-for-sale financial assets
Long-term loans
Total
Gross value
3,788,093
21,279
3,809,372
Non-current financial assets
Available-for-sale financial assets
Long-term loans
Total
Gross value
6,428,006
19,430
6,447,436
Change in impairment of non-current financial assets
Balance as at 1 January
Newly created impairments
Reversal of impairment
Balance as at 31 December
96
in euros
2013
6,053,227
19,430
6,072,657
Impairment
378,183
0
378,183
in euros
Net value
2014
3,409,910
21,279
3,431,189
Impairment
374,779
0
374,779
in euros
Net value
2013
6,053,227
19,430
6,072,657
2014
374,779
3,404
0
378,183
in euros
2013
386,036
2,861
-14,118
374,779
Annual Report 2014
Available-for-sale financial assets
Available-for-sale financial assets
Bonds
Quoted shares
Financial assets managed by banks
Mutual funds
Unquoted shares and participating interests
Total
2014
806,911
276,837
0
1,580,792
745,370
3,409,910
in euros
2013
1,772,992
222,736
1,860,497
1,451,632
745,370
6,053,227
The book value of available-for-sale financial assets is equal to the fair value, or to the historical cost when the fair value
cannot be reliably measured. The method for determining fair value for each class of available-for-sale asset is given
below. Due to the financial crisis and its effect on the Slovenian capital market, there is a certain level of uncertainty
relating to future events; given the current situation, it is virtually impossible to predict these events with any certainty.
The fair value of securities quoted on the stock exchange (shares and bonds) is equal to the published average closing
share price, while the fair value of investments in mutual funds is calculated on the basis of the published value of the
unit price for each mutual fund.
An investment in 5,121 shares in Gorenjska banka d.d. in the amount of EUR 629,265 is disclosed under investments in
participating interests and shares not quoted on the stock exchange. There are significant uncertainties in connection
with the asset, in relation to the bank’s future performance. On the basis of the comprehensive review conducted in 2013
the Bank of Slovenia instructed Gorenjska banka to draw up a capital strengthening plan by the end of January 2014
(the deadline was later extended) that will demonstrate long-term viability, and to draw up measures to cover its capital
deficit. Should the bank’s actions (primarily an influx of capital from existing owners, a search for new investors, the sale
of receivables and other assets, and other measures to strengthen capital adequacy) prove fruitless, it will be able to
request state aid in accordance with European Commission rules. Given that the capital strengthening plan and the
envisaged measures, let alone the results of the measures, are not yet known, there is significant uncertainty
surrounding the bank’s future as a going concern, while there is also a lack of information about comparable
transactions. In light of the above, it is assessed that the fair value of the bank as at 31 December 2014 cannot be
estimated with sufficient reliability, for which reason the asset remained valued at the historical cost of EUR 122.88 per
share in accordance with IAS 39.46. The historical cost of one share in Gorenjska banka was compared with the book
value (the latest figure was for 31 December 2013, and was published in the bank’s audited annual report for 2013) of
EUR 554 per share, for which reason the assessment is that no additional impairment of the investment is necessary.
Owing to the fact that we do not have information on the basis of which we could assess their fair value, other
participating interests and shares not quoted on the stock exchange (shares in Skupna pokojninska družba and a
participating interest in IEDC poslovna šola Bled, d.o.o. totalling EUR 116,106) have been assessed at their historical
cost. Given the available information on the operations of these companies and the amount of their capital, there is no
reason to impair these two investments.
97
Annual Report 2014
Changes in 2014
Bonds
Quoted shares
Financial assets managed by banks
Mutual funds
Unquoted shares and participating interests
Total
1 Jan 2014
1,772,992
222,736
1,860,497
1,451,632
745,370
6,053,227
Revaluation
298,774
54,101
79,218
129,160
0
561,253
Increase
10,284
0
0
0
0
10,284
Decrease Elimination*
1,252,142
6,880
0
0
1,939,715
0
0
0
0
0
3,191,857
6,880
Impairment
3,404
0
0
0
0
3,404
in euros
Transfer from Transfer to
current
current
financial
financial
assets
assets 31 Dec 2014
147,102
159,815
806,911
0
0
276,837
0
0
0
0
0 1,580,792
0
0
745,370
147,102
159,815 3,409,910
* The elimination of bonds in the amount of EUR 6,880 relates to the derecognition of an investment in the subordinated bonds of Banka Celje (BCE12). The derecognition was made on the basis of Bank of Slovenia rulings on extraordinary
measures pronounced on 16 December 2014 against the aforementioned bank (the banks’ liabilities from the aforementioned bonds were suspended on the basis of the ruling, which resulted in finance expenses in the amount of EUR 6,880). At
the same time the derecognition of receivables for interest on the bonds (EUR 218) previously disclosed under current financial assets was charged to finance expenses.
Changes in 2013
Bonds
Quoted shares
Financial assets managed by banks
Mutual funds
Unquoted shares and participating interests
Total
1 Jan 2013
3,382,284
196,318
1,852,884
1,650,801
2,983,866
10,066,153
Revaluation
-353,336
29,280
-23,927
-199,169
-2,238,496
-2,785,648
Increase
0
0
250,000
0
0
250,000
Decrease Elimination
134,390
1,110,883
0
0
218,460
0
0
0
0
0
352,850
1,110,883
Impairment
0
2,862
0
0
0
2,862
in euros
Transfer from Transfer to
current
current
financial
financial
assets
assets 31 Dec 2013
136,419
147,102 1,772,992
0
0
222,736
0
0 1,860,497
0
0 1,451,632
0
0
745,370
136,419
147,102 6,053,227
The decline in bonds in the total amount of 1,252,142 relates to the sale of SEDABI 3 bonds in the amount of EUR
355,200 (which realised a capital gain of EUR 25,873) and the sale of FB 11 bonds in the amount of EUR 749,841 (the
sale was at a discount of 10%, which was reflected in finance expenses in the amount of EUR 84,935), while the
remaining EUR 147,102 relates to the partial redemption of SOS2E bonds (which realised a capital gain of EUR 18,241).
The company also sold financial assets under management contracts in the amount of EUR 1,939,715 in 2014 for the
purpose of securing the funds for dividend payments, generating a capital gain of EUR 1,119,574 and a capital loss of
EUR 3,052 in so doing.
in euros
One to five
years
806,911
0
0
0
806,911
Structure by maturity as at 31 December 2014
Bonds
Quoted shares
Mutual funds
Unquoted shares and participating interests
Total
Over five
years
0
276,837
1,580,792
745,370
2,602,999
Total
806,911
276,837
1,580,792
745,370
3,409,910
in euros
One to five
years
1,271,157
0
0
0
0
1,271,157
Structure by maturity as at 31 December 2013
Bonds
Quoted shares
Financial assets managed by banks
Mutual funds
Unquoted shares and participating interests
Total
Over five
years
501,835
222,736
1,860,497
1,451,632
745,370
4,782,070
Total
1,772,992
222,736
1,860,497
1,451,632
745,370
6,053,227
Long-term loans
Funds in the amount of EUR 21,279 deposited at a commercial bank as collateral for customs liabilities were disclosed
under long-term loans as at 31 December 2014.
98
Annual Report 2014
Changes in year
1 January
Increase
Transfer from current financial assets
Decrease
Transfer to current financial assets
31 December
Structure by maturity as at 31 December
One to five years
Total
2014
19,430
21,279
0
-3,750
-15,680
21,279
in euros
2013
40,295
0
15,000
-15,000
-20,865
19,430
2014
21,279
21,279
in euros
2013
19,430
19,430
Effect of financial assets on equity and profit or loss
Effect of financial assets on equity in 2014 (changes
in revaluation surplus from financial assets)
Bonds
Quoted shares
Financial assets managed by banks
Mutual funds
Total
Adjustment for deferred tax liabilities
Revaluation of surplus from financial assets
1 Jan 2014
-257,580
105,408
1,037,304
-16,644
868,488
147,643
720,845
Transfer to
Revaluation finance income
298,774
44,114
54,101
0
79,218
1,119,574
129,160
0
561,253
1,163,688
95,413
197,827
465,840
965,861
in euros
Transfer to
finance
expenses 31 Dec 2014
84,935
82,015
0
159,509
3,052
0
0
112,516
87,987
354,040
14,958
60,187
73,029
293,853
in euros
Effect of financial assets on equity in 2013 (changes
in revaluation surplus from financial assets)
Bonds disclosed under non-current financial assets
Bonds disclosed under current financial assets
Quoted shares
Financial assets managed by banks
Mutual funds
Unquoted shares and participating interests
Total
Adjustment for deferred tax liabilities
Revaluation of surplus from financial assets
1 Jan 2013
112,420
-35,000
76,128
924,433
182,524
2,238,495
3,499,000
524,150
2,974,850
Transfer to
Revaluation finance income
-353,335
16,665
35,000
0
29,280
0
-23,927
8,189
-199,168
0
-2,238,495
0
-2,750,645
24,854
-467,610
4,225
-2,283,035
20,629
99
Transfer to
finance
expenses
0
0
0
144,987
0
0
144,987
24,648
120,339
Effect of
change in
tax rate
0
0
0
0
0
0
0
70,680
-70,680
31 Dec 2013
-257,580
0
105,408
1,037,304
-16,644
0
868,488
147,643
720,845
Annual Report 2014
Effect of financial assets on profit or loss
Dividends and interest on financial assets managed by banks
Dividends on quoted shares
Dividends on unquoted shares
Interest on bonds
Capital gains on sale or redemption of bonds
Capital gains on sale of financial assets under management at banks
Interest on long-term loans
Interest on short-term loans
Interest on loans to others
Total revenues
Interest on loans
Commission on financial assets managed by banks
Exchange rate differences
Capital loss on sale of bonds
Capital loss on sale of financial assets under management at banks
Expenses from elimination of bonds
Expenses from impairments of financial assets
Total expenses
2014
14,718
19,910
0
63,853
44,114
1,119,574
414
165,956
80,256
1,508,795
in euros
2013
68,565
23,424
7,400
135,934
16,665
8,189
0
869,886
80,177
1,210,240
28,611
14,187
0
84,935
3,052
7,098
3,714
141,597
0
21,750
3,987
0
144,988
1,126,850
2,862
1,300,437
5.1.5 DEFERRED TAX ASSETS
Deferred tax assets are the result of the offsetting of deferred tax assets and liabilities.
Deferred tax assets and deferred tax liabilities
Deferred tax assets
Deferred tax liabilities
Total
2014
961,501
-60,187
901,314
in euros
2013
1,159,475
-147,643
1,011,832
Deferred tax assets
Impairment of the investment in associates (or available-for-sale assets)
Impairment of other financial assets
Impairment of current operating receivables
Provisions for jubilee benefits and termination benefits
Total
2014
665,945
64,344
110,154
121,058
961,501
in euros
2013
866,772
63,713
115,380
113,610
1,159,475
2014
60,187
in euros
2013
147,643
Deferred tax liabilities
Revaluation of financial assets to fair value
100
Annual Report 2014
5.1.6 AVAILABLE-FOR-SALE ASSETS
An investment in Adria Airways Tehnika d.d., in which Aerodrom Ljubljana, d.d. holds an interest of 47.67%, is disclosed
under available-for-sale assets. In light of the decision by the existing owners that they are ready and determined to sell
the company, and given that the sale procedure is underway and is expected to be completed within a year, the
aforementioned investment is disclosed under available-for-sale assets.
The nominal value is EUR 6,994,154 and the carrying amount is EUR 411,392. An impairment in the amount of EUR
3,846,785 was created in 2010 and 2011, and an impairment in the amount of EUR 2,735,977 was created in 2014.
The impairment in the amount of EUR 2,735,977 was created on 30 June 2014 on the basis of indications of the
impairment of the investment. In this connection the investment was impaired to the estimated fair value less selling
costs, which was drawn up by the senior management. The fair value of the investment was estimated at end of the
financial year, and did not differ from the assessment that formed the basis for the impairment as at 30 June 2014.
The procedure to sell Adria Airways Tehnika d.d. is progressing according to plan, and is in the stage of collecting
binding bids. The final consideration is not yet known.
5.1.7 CURRENT FINANCIAL ASSETS
Current financial assets
Short-term loans
Current financial assets, excluding loans
Total
2014
8,656,657
186,328
8,842,985
Current financial assets
Short-term loans
Current financial assets, excluding loans
Total
Current financial assets
Short-term loans
Current financial assets, excluding loans
Total
in euros
2013
33,198,496
783,144
33,981,640
Gross value
8,656,657
186,638
8,843,295
Value
adjustment
0
310
310
in euros
Net value
2014
8,656,657
186,328
8,842,985
Gross value
33,198,496
783,144
33,981,640
Value
adjustment
0
0
0
in euros
Net value
2013
33,198,496
783,144
33,981,640
Short-term loans in the amount of EUR 8,656,657 primarily relate to short-term deposits at banks measured at amortised
cost (EUR 7,022,772), short-term loans to others (EUR 1,625,210), receivables for interest on short-term loans to others
(EUR 6,594) and receivables for interest on short-term deposits at banks (EUR 2,081). The average interest rate on the
bank deposits is fixed, and stands at 0.4%. The item of short-term loans to others includes a loan to Adria Airways
Tehnika d.d. in the amount of EUR 1,627,364, which is secured via a lien on movable property (inventories of aircraft
maintenance materials).
Other current financial assets in the amount of EUR 186,328 include a portion of the principal of SOS2E bonds in the
amount of EUR 159,815 (whose redemption is envisaged in 2015 under the amortisation schedules) and receivables for
interest on bonds (EUR 26,513).
101
Annual Report 2014
The effect of current financial assets on the profit is presented as part of non-current financial assets (point 5.1.4 of the
Financial Report).
Changes in 2014
Short-term loans
Current financial assets, excluding loans
Total
1 January
2014
33,198,496
783,144
33,981,640
Negative
foreign
exchange
differences
0
45
45
Increase
Decrease
85,766,749 110,324,268
103,070
712,027
85,869,819 111,036,295
Transfer from
Value
non-current
adjustment Elimination* financial assets
0
0
15,680
310
217
159,815
310
217
175,495
in euros
Transfer to
non-current
financial
assets 31 Dec 2014
0
8,656,657
147,102
186,328
147,102
8,842,985
Transfer from
non-current
Elimination financial assets
0
20,865
15,967
147,102
15,967
167,967
in euros
Transfer to
non-current
financial
assets 31 Dec 2013
15,000 33,198,496
136,419
783,144
151,419 33,981,640
* Note 5.1.4 - Available-for-sale financial assets
Changes in 2013
Short-term loans
Current financial assets, excluding loans
Total
1 January
2013
31,777,687
865,165
32,642,852
Foreign
Value exchange
adjustment differences
0
3,986
35,000
4
35,000
3,990
Increase
79,166,985
1,539,079
80,706,064
Decrease
77,748,055
1,650,812
79,398,867
in euros
Structure by maturity as at 31 December 2014
Short-term loans
Current financial assets, excluding loans
Total
Up to three Three months
months
to one year
7,010,779
1,645,878
43
186,285
7,010,822
1,832,163
Structure by maturity as at 31 December 2013
Short-term loans
Current financial assets, excluding loans
Total
Up to three Three months
months
to one year
30,903,496
2,295,000
636,042
147,102
31,539,538
2,442,102
Total
33,198,496
783,144
33,981,640
2014
0
310
310
in euros
2013
0
0
0
Total
8,656,657
186,328
8,842,985
in euros
Change in value adjustment to current financial assets
Balance as at 1 January
Newly created value adjustments
Balance as at 31 December
5.1.8 CURRENT OPERATING RECEIVABLES
Current operating receivables
Current trade receivables
Current receivables for advances
Current trade receivables from others
Total
2014
3,989,311
15,591
138,701
4,143,603
102
in euros
2013
2,945,987
1,020,731
245,316
4,212,034
Annual Report 2014
Current trade receivables
Current domestic trade receivables
Current trade receivables from rest of world
Total
2014
2,944,792
1,044,519
3,989,311
Current trade receivables
Current domestic trade receivables
Current trade receivables from rest of world
Total
Gross value
3,338,944
1,304,042
4,642,986
Value
adjustment
-394,152
-259,523
-653,675
in euros
2013
2,014,955
931,032
2,945,987
in euros
Net value
2014
2,944,792
1,044,519
3,989,311
The majority of current domestic trade receivables comprises receivables from Adria Airways d.d., which are secured by
means of an agreement on fiduciary cession of 28 January 2014 (a new agreement was signed on 17 February 2015).
Changes in impairment of receivables
Balance as at 1 January
Newly created impairments of receivables
Payments received of already impaired receivables
Receivables written off
Balance as at 31 December
Structure of receivables - gross value by maturity
Non-past-due receivables
Receivables up to 3 months in arrears
Receivables 3 months to 1 year in arrears
Receivables more than 1 year in arrears
Total
Structure of receivables - net value by maturity
Non-past-due receivables
Receivables up to 3 months in arrears
Receivables 3 months to 1 year in arrears
Receivables more than 1 year in arrears
Total
Current receivables for advances
Advances for working capital
Advances for property, plant and equipment
Total
103
2014
693,924
25,210
-20,963
-44,496
653,675
in euros
2013
692,009
87,190
-57,479
-27,796
693,924
2014
2,813,704
1,041,851
158,442
628,989
4,642,986
in euros
2013
2,454,566
403,799
148,547
632,999
3,639,911
2014
2,813,074
1,039,789
136,423
25
3,989,311
in euros
2013
2,453,960
395,991
91,167
4,869
2,945,987
2014
15,591
0
15,591
in euros
2013
45,038
975,693
1,020,731
Annual Report 2014
Current operating receivables from others
Receivables for input VAT
Other current receivables
Total
2014
93,762
44,939
138,701
in euros
2013
196,798
48,518
245,316
5.1.9 SHAREHOLDER EQUITY
Shareholder equity amounted to EUR 92,781,304 as at 31 December 2014, down 25.6% or EUR 32,003,701 on
31 December 2013. It accounted for 87.5% of total equity and liabilities (compared with 95.2% as at 31 December 2013).
The decline was related to the general meeting resolution approving the payment of dividends for 2013 in the amount of
EUR 34,972,826 (the dividend payment was made in July 2014). The company did not hold any shares in treasury or
any authorised capital as at 31 December 2014, and the general meeting did not pass any resolution to increase the
share capital. The changes in equity in 2014 and 2013 are disclosed in the statement of changes in equity (point 3.4 of
the Financial Report).
Share capital
Preference participating no-par value shares
Ordinary freely transferable no-par value shares
Total
Number of shares
1,860,298
1,936,229
3,796,527
Percentage of share Nominal value of share
capital
capital in euros
49
7,762,887
51
8,079,739
100
15,842,626
The amount of issued share capital was unchanged from 31 December 2013, as were the number and classes of
shares.
All issued shares are paid up in full and are bearer securities.
Ordinary no-par value shares are freely transferable, and have been traded on the Ljubljana Stock Exchange since
October 1997.
Participating preference no-par value shares have limited voting rights. These shares may be converted to ordinary
shares on the holder’s written request. A decision in this regard is made by the company’s general meeting of
shareholders pursuant to the procedure set out in Articles 316 and 329 of the Companies Act. The approval of the
holders of participating preference no-par value shares is required for a resolution on the restriction or revocation of
preference to be valid. A decision in this regard is made at a separate meeting through an extraordinary resolution,
requiring a majority of at least three-quarters of shareholder votes.
The ownership of the shares and the changes in ownership are described in point 1.2 and point 4 of the Business
Report.
In accordance with Article 8 of the company’s Articles of Association, participating preference no-par value shares are
entitled to a dividend comprising a fixed portion and a variable portion. The fixed portion of the dividend amounts to 1%
of the value of share capital pertaining to participating preference no-par value shares plus the general capital
revaluation adjustment, while the variable portion is equal to the dividend for ordinary shares. The dividend for
participating preference no-par value shares is equal to the dividend for ordinary no-par value shares, if the net profit for
the financial year is less than or equal to 1% of the nominal value of share capital plus the general capital revaluation
adjustment.
The book value of a share as at 31 December 2014 was EUR 24.44, down 25.6% on 31 December 2013 (in connection
with the dividend payment for 2013).
104
Annual Report 2014
The company’s shareholders that held a qualifying holding as at 31 December 2014 in accordance with the ZPre-1 are
disclosed in point 2.5 of the Business Report (Information provided under the sixth paragraph of Article 70 of the
Companies Act (ZGD-1)).
Share premium
Share premium in the amount of EUR 24,287,659 was formed on the basis of the elimination of the general share
shareholder equity revaluation adjustment.
Profit reserves
Profit reserves
Legal reserves
Reserves under the Articles of Association
Other profit reserves
Total
2014
4,013,029
12,039,085
27,881,760
43,933,874
in euros
2013
4,013,029
12,039,085
62,677,098
78,729,212
Other profit reserves were reduced by EUR 34,795,337 in connection with the payment of dividends for 2013 in the
amount of EUR 34,972,826.
Revaluation surplus
The revaluation surplus amounted to EUR 96,059 as at 31 December 2014. EUR 293,853 relates to the revaluation
surplus on available-for-sale financial assets (deferred tax liabilities have already been deducted from the
aforementioned sum), while EUR 197,794 comprises the unrealised actuarial loss on post-employment benefits (see
note in point 5.1.10 of the Financial Report).
The changes in the revaluation surplus on available-for-sale financial assets are disclosed in point 5.1.4 of the Financial
Report (Effect of financial assets on equity and profit or loss), whereby the decline in the figure relative to 31 December
2013 is primarily the result of the sale of financial assets under management contracts (see note in point 5.1.4 of the
Financial Report - Available-for-sale financial assets).
Retained earnings
Retained earnings in the amount of EUR 8,621,086 comprise part of the distributable profit for 2013 in the amount of
EUR 5,027,124 that remained undistributed under the general meeting resolution of 13 May 2014, and net profit from
2014 in the amount of EUR 3,593,911.
Net profit and earnings per share
The company generated a net profit of EUR 3,593,911 in 2014.
105
Annual Report 2014
Basic earnings per share
Net profit for ordinary shareholders (in euros)
Average number of ordinary shares
Basic earnings per share (in euros)*
2014
1,732,609
1,936,229
0.89
in euros
2013
2,548,851
1,936,229
1.32
* The calculation of basic earnings per share for 2014 and 2013 has been made under the assumption that the entire net profit generated in
a given year is earmarked for dividend payments.
Diluted earnings per share
Net profit (in euros)
Average number of all shares*
Diluted earnings per share (in euros)
2014
3,593,911
3,796,527
0.95
in euros
2013
5,194,384
3,796,527
1.37
* In order to calculate diluted earnings per share, participating preference no-par value shares that can be exchanged for ordinary
no-par value shares were defined as potential ordinary no-par value shares. Because the principle of the exchangeability of
participating preference shares for ordinary no-par value shares has not been agreed with the owner of the participating preference
shares, i.e. there is no clear exchange ratio, the calculations in the table are for information purposes only, and assume a 1:1
exchange ratio.
Distributable profit
The company generated its distributable profit in accordance with the Companies Act.
The general meeting decides on the use of the distributable profit on the basis of a proposal by the Management Board
and the Supervisory Board.
Formation of distributable profit
Net profit for the period
- creation of other profit reserves
+ release of other profit reserves
+ retained earnings
= distributable profit
- to dividends
= remaining distributable profit
2014
3,593,911
0
0
5,027,174
8,621,085
in euros
2013
5,194,384
0
34,795,337
10,279
40,000,000
34,972,826
5,027,174
The Management Board will propose to the general meeting of shareholders that the distributable profit for 2014 in the
amount of EUR 8,621,085 remain undistributed.
The final use of distributable profit will be discussed at the 21th general meeting.
5.1.10 PROVISIONS AND NON-CURRENT ACCRUALS AND DEFERRED INCOME
The company disclosed the following items in provisions and non-current accruals and deferred income in the total
amount of EUR 1,359,847:
106
Annual Report 2014
provisions for termination benefits and jubilee benefits for employees, the necessary level of which was
determined through actuary calculations (EUR 1,244,604),
non-current deferred income in the amount of EUR 115,243 for grants received in 1993 and 1994 from the
Slovenian state budget for property, plant and equipment; the amount of the reduction is the depreciation
charge for these assets in 2014 (the company disclosed other operating revenues in the same amount).
Provisions for termination benefits and jubilee benefits were created in the amount of estimated future commitments for
termination benefits and jubilee benefits, discounted to the balance sheet date. The calculation was made for each
employee, taking into account the costs of termination benefits and the cost of all expected jubilee benefits until
retirement. The calculation allows for growth in the amounts of retirement benefits and jubilee benefits set out in the
decree on the treatment of the reimbursement of costs and other employment earnings for tax purposes in the amount of
1.3% in 2015, 1.8% in 2016 and 3% annually from 2017 onwards.10 The planned turnover in the workforce at the
company and the forecast growth in wages at the company were taken into account. The selected annual discount rate
is 2.1%, in accordance with the majority owner’s guidelines with regard to applied discount rates. The calculation was
drawn up by a certified actuary using the projected unit method.
Balance as
at 1.1.2014
321,853
610,217
202,472
1,134,542
Changes in 2014
Provisions for jubilee benefits
Provisions for termination benefits
Non-current accruals and deferred income (deferred income)
Total
Utilisation
27,115
0
87,229
114,344
Formation
89,143
52,712
0
141,855
in euros
Unrealised
actuarial Balance as
loss at 31.12.2014
0
383,881
197,794
860,723
0
115,243
197,794
1,359,847
in euros
Balance as
at 1.1.2013
318,032
561,880
240,405
309,533
1,429,850
Changes in 2013
Provisions for jubilee benefits
Provisions for termination benefits
Provisions for supplementary pensions insurance of fire-fighters
Non-current accruals and deferred income (deferred income)
Total
Utilisation
25,274
0
229,878
107,061
362,213
Formation
29,095
48,337
0
0
77,432
Balance as
Reversal at 31.12.2013
0
321,853
0
610,217
10,527
0
0
202,472
10,527
1,134,542
in euros
Structure by maturity as at 31 December 2014
Provisions for jubilee benefits
Provisions for termination benefits
Non-current accruals and deferred income (deferred income)
Total
Up to one
year
31,263
39,259
35,116
105,638
One to five
years
98,908
107,890
30,350
237,148
Over five
years
253,710
713,574
49,777
1,017,061
Structure by maturity as at 31 December 2013
Provisions for jubilee benefits
Provisions for termination benefits
Non-current accruals and deferred income (deferred income)
Total
Up to one
year
26,693
24,874
87,229
138,796
One to five
years
98,231
89,472
65,467
253,170
Over five
years
196,929
495,871
49,776
742,576
Total
383,881
860,723
115,243
1,359,847
in euros
Total
321,853
610,217
202,472
1,134,542
The assumption is that the bases will change in line with the assumed growth in the average wage in Slovenia, as the actual intentions of
legislators with regard to the amounts set out in the aforementioned decree are unknown.
10
107
Annual Report 2014
5.1.11 NON-CURRENT OPERATING LIABILITIES
Non-current operating liabilities
Liabilities under the general agreement on superficies*
Municipal charge for North Car Park
Liabilities for superficies for aircraft maintenance infrastructure
Liabilities for superficies for part of apron*
Other non-current operating liabilities
Total
2014
6,759,260
345,604
73,812
0
41,686
7,220,362
in euros
2013
0
345,604
69,560
327,859
58,183
801,206
2014
2,053,385
1,124,914
in euros
2013
2,457,878
1,015,227
497,491
387,190
308,009
122,305
44,923
4,538,217
460,554
0
95,466
89,995
45,926
4,165,046
* Note 5.1.1
5.1.12 CURRENT OPERATING LIABILITIES
Current operating liabilities
Current trade payables
Current liabilities to employees
Current liabilities for advances received and security deposits received and
retained
Current portion of liabilities under the general agreement on superficies*
Current liabilities for income tax expense
Current liabilities for unpaid dividends
Other current liabilities
Total
* Note 5.1.1
Current liabilities for advances received and security deposits received and retained in the total amount of EUR 497,491
include EUR 452,790 for retained security deposits (the contractually agreed retention of payments of trade payables for
property, plant and equipment as a performance bond).
Current liabilities to employees in the amount of EUR 1,124,914 relate to wages, reimbursements for transport and food
expenses and liabilities for employer’s contributions for the month of December 2014 paid in January 2015.
Current trade payables
Domestic trade payables
Trade payables to rest of world
Total
Current trade payables
Trade payables for property, plant and equipment
Trade payables for working capital
Total
108
2014
1,749,250
304,135
2,053,385
in euros
2013
2,318,419
139,459
2,457,878
2014
809,871
1,243,514
2,053,385
in euros
2013
903,718
1,554,160
2,457,878
Annual Report 2014
The trade payables disclosed as at 31 December 2014 had not yet matured for payment.
in euros
Structure by maturity as at 31 December 2014
Current trade payables
Current liabilities for advances received and security deposits received and
retained
Current liabilities to employees
Current portion of liabilities under the general agreement on superficies*
Current liabilities for income tax expense
Current liabilities for unpaid dividends
Other current liabilities
Total
Up to three Three months
months
to one year
2,053,385
0
82,325
1,124,914
387,190
79,858
122,305
44,923
3,894,900
415,166
0
0
228,151
0
0
643,317
Total
2,053,385
497,491
1,124,914
387,190
308,009
122,305
44,923
4,538,217
in euros
Structure by maturity as at 31 December 2013
Current trade payables
Current liabilities for advances received and security deposits received and
retained
Current liabilities to employees
Current liabilities for income tax expense
Current liabilities to the government institutions
Current liabilities for unpaid dividends
Other current liabilities
Total
Up to three Three months
months
to one year
2,231,314
226,564
98,109
1,015,227
78,093
0
89,995
45,926
3,558,664
362,445
0
17,373
0
0
0
606,382
Total
2,457,878
460,554
1,015,227
95,466
0
89,995
45,926
4,165,046
5.1.13 CONTINGENT ASSETS AND LIABILITIES
The following are disclosed in off-balance-sheet records:
contingent assets in the amount of two undrawn revolving loans in the amount of EUR 15,000,000;
contingent assets from received guarantees in the amount of EUR 1,938,788 and received bills of exchange in
the amount of EUR 114,472 (these primarily relate to warranty bonds);
contingent assets from default interest charged to customers in the amount of EUR 54,875;
contingent liabilities for sureties issued in the amount of EUR 15,037,619 (EUR 15,000,000 relates to bills of
exchange for securing liabilities from revolving loans raised);
contingent liabilities for bank guarantees in the amount of EUR 62,619 (these primarily relate to contractual
performance bonds and to collateral for customs liabilities).
109
Annual Report 2014
5.2 NOTES TO THE INCOME STATEMENT
5.2.1 NET SALES REVENUE
Net sales revenue
Revenues from domestic sales of services
Revenues from sales of services to the rest of the world
Revenues from domestic sales of materials
Total
2014
22,218,357
9,606,561
2,600
31,827,518
in euros
2013
21,502,284
9,483,235
1,225
30,986,744
5.2.2 OTHER OPERATING REVENUES
The company discloses the following under other operating revenues in the amount of EUR 221,108:
revenues in the amount of EUR 87,229 from a reduction in non-current deferred income (see note in point
5.1.10 of the Financial Report);
revenues in the amount of EUR 88,688 relating to gains realised in the sale of property, plant and equipment;
revenues in the amount of EUR 20,963 for payments received for receivables for which impairments had been
created in previous years;
revenues in the amount of EUR 7,808 from fines and compensation received;
revenues in the amount of EUR 7,000 from projects co-financed by the EU,
miscellaneous operating revenues in the amount of EUR 9,420.
5.2.3 COSTS OF MATERIALS
Costs of materials
Electricity
Non-durables
Motor fuel
Materials for current maintenance
Heating oil
Small inventory (work clothes and protective means)
Other costs of materials
Total
2014
510,757
241,324
202,814
177,930
158,805
154,237
127,749
1,573,616
110
in euros
2013
561,053
263,084
229,102
187,922
291,706
80,473
132,750
1,746,090
Annual Report 2014
5.2.4 COSTS OF SERVICES
2014
1,622,123
956,708
866,493
479,700
396,986
376,728
372,696
279,146
229,196
218,884
178,783
160,555
157,488
108,183
412,999
6,816,668
in euros
2013
1,573,521
982,751
871,009
479,467
360,926
346,111
358,002
272,194
204,997
209,376
166,968
151,220
146,593
101,176
416,903
6,641,214
2014
8,750,706
1,486,174
330,982
120,898
104,806
1,391,458
12,185,024
in euros
2013
8,359,208
1,427,975
308,048
84,329
77,959
1,384,049
11,641,568
Wages
Employee wages
Wage compensation
Total
2014
7,527,391
1,223,315
8,750,706
in euros
2013
7,161,211
1,197,997
8,359,208
Social security costs
Compulsory pension and disability insurance
Other social security levies
Total
2014
847,213
638,961
1,486,174
in euros
2013
818,976
608,999
1,427,975
Cost of services
Security costs
Maintenance costs
Advertising costs
Services related to the performance of the company's basic activity
Intellectual services
Work through students service
Services of the Civil Aviation Agency
Insurance premiums
Rents
Healthcare services
Reimbursement of work-related costs
Supervisory board costs
Software maintenance
Costs of the business lounge
Other services
Total
5.2.5 LABOUR COSTS
Labour costs
Wages
Social security costs
Supplementary pension insurance
Already included costs of unused leave as at 31 December
Creation of provisions for termination benefits and jubilee benefits
Other employee costs
Total
111
Annual Report 2014
Other employee costs
Travel expenses
Employee meals
Annual leave payment
Other labour costs
Total
2014
443,142
527,842
325,064
95,410
1,391,458
in euros
2013
425,192
514,332
317,970
126,555
1,384,049
2014
372,492
4,115,867
4,488,359
in euros
2013
190,687
4,328,639
4,519,326
2014
110,766
30,928
30,023
25,168
16,805
75,785
289,475
in euros
2013
164,706
27,620
229
87,190
248,042
57,179
584,966
5.2.6 DEPRECIATION AND AMORTISATION
Depreciation and amortisation
Amortisation of intangible assets
Depreciation of property, plant and equipment
Total
5.2.7 OTHER OPERATING EXPENSES
Other operating expenses
Compensation for the use of building right*
Donations
Value adjustments to inventories
Creation of impairments of receivables
Losses through disposal of fixed assets
Other expenses
Total
* In addition to the fee for the use of building land in the amount of EUR 106 thousand, tax on high-value real estate in the amount of EUR
59 thousand was also paid in 2013.
5.2.8 FINANCE INCOME AND EXPENSES
Finance income
Capital gains*
Interest on financial assets
Dividends
Other interest
Exchange rate differences and cent roundings
Total
2014
1,163,688
319,874
25,233
11,693
4,346
1,524,834
* Note 5.1.4 - Available-for-sale financial assets
112
in euros
2013
24,852
1,115,035
70,350
42,855
12,403
1,265,495
Annual Report 2014
Finance expenses
Impairment of the investment in Adria Airways Tehnika, d.d.*
Interest on superficies
Capital loss on sale of bonds**
Interest on provisions
Interest on loans
Fees and commission paid to banks for financial assets under management
Impairment of financial assets
Capital loss on sale of financial assets under management at banks**
Exchange rate differences and cent roundings
Interest on operating liabilities
Elimination of bonds**
Total
2014
2,735,977
321,882
84,935
38,811
28,611
14,187
3,714
3,052
2,463
148
7,098
3,240,878
in euros
2013
0
20,815
0
0
0
21,750
2,862
144,988
12,260
1,097
1,126,850
1,330,622
2014
1,187,554
197,975
1,385,529
in euros
2013
957,339
-84,823
872,516
2014
5,226
in euros
2013
-325
-7,448
200,197
0
197,975
-2,285
1,631
-83,844
-84,823
* Note 5.1.6 - Available-for-sale assets
** Note 5.1.4 - Available-for-sale financial assets
5.2.9 INCOME TAX EXPENSE AND DEFERRED TAX
Income tax expense and deferred tax
Income tax expense levied
Deferred tax
Total
Effect of deferred tax on performance
Change in deferred tax receivables from impairment of trade receivables
Change in deferred tax receivables from provisions for jubilee benefits and
employee termination benefits
Change in deferred tax receivables from impairment of financial assets
Effect of change in tax rate
Total
113
Annual Report 2014
Effective income tax expense rate
Pre-tax profit
Anticipated income tax expense at 17% rate
Reduction in revenues
Increase/decrease in expenses
Tax relief
Transition to IFRS
Other adjustments
Deferred tax
Income tax expense
Effective tax rate
2014
4,979,440
846,505
-6,948
563,549
-211,111
-4,610
169
197,975
1,385,529
27.8 %
in euros
2013
6,066,900
1,031,373
-17,578
94,417
-146,966
-4,297
390
-84,823
872,516
14.4 %
5.2.10 OTHER COMPREHENSIVE INCOME FOR THE PERIOD
Changes in financial assets that result in other comprehensive income are explained under non-current financial assets
(note in point 5.1.4 - Effect of financial assets on equity and profit or loss).
The unrealised actuarial loss from the restatement of liabilities for employee termination benefits in the amount of EUR
197,794 is included in other comprehensive income (note 5.1.10).
5.2.11 SEGMENT REPORTING
The company reports for the operating segments of airport services, ground handling services and commercial services.
Other services comprise revenues and expenses of those activities that account for less than 10% of total revenues.
Direct operating revenues and expenses and indirect operating expenses are recorded for each operating segment. The
latter relate to the costs of support activities and administration that can be allocated to an individual operating segment
on a reasonable basis.
Support activities include the rescue and fire fighting department, maintenance, winter and construction and utilities
maintenance services, aero-engineering and certain other less significant support activities. The highest of these costs is
the rescue and fire fighting department, the majority of which is charged to airport services.
The item “other costs” comprises labour costs comprises labour costs that are indirectly charged to airport services (from
ground handling services and commercial services).
Administrative costs include the costs of the governance and management of the company, the commercial division, the
ground handling and operations, the financial accounting division, and the general division.
Assets and liabilities are not monitored by operating segment. For the purposes of segment reporting they are allocated
across segments in proportion to the operating revenues generated.
114
Annual report 2014
in euros
2014
Ground
handling Commercial
services
services
5,717,248
9,342,066
Operating revenues
TOTAL
COMPANY
32,048,626
Airport
services
16,466,859
Operating expenses
Costs of materials
Costs of services
Labour costs
Depreciation/amortisation
Impairments of receivables
Other operating expenses
25,353,142
1,573,617
6,816,668
12,185,024
4,488,359
25,168
264,306
6,131,839
280,997
2,606,105
952,408
2,261,943
0
30,386
6,469,445
466,428
982,739
4,682,950
334,612
0
2,716
6,695,484
10,335,020
0
0
0
0
2013
Ground
handling Commercial
services
services
5,974,657
8,855,794
Other
522,453
TOTAL
COMPANY
31,265,191
Airport
services
15,854,267
2,808,935
284,845
708,834
791,661
1,020,167
0
3,428
9,942,923
541,347
2,518,990
5,758,005
871,637
25,168
227,776
25,133,164
1,746,090
6,641,214
11,641,568
4,519,326
88,382
496,584
6,408,402
296,363
2,582,755
917,372
2,374,156
0
237,756
6,400,931
428,532
941,127
4,512,786
511,600
1,192
5,694
2,615,073
287,979
630,119
786,897
910,078
0
0
9,708,758
733,216
2,487,213
5,424,513
723,492
87,190
253,134
-752,197
6,533,131
-9,420,470
6,132,027
9,445,865
-426,274
6,240,721
-9,128,285
-7,132,703
-2,920,295
-1,496,235
-2,716,173
-449,147
-354,019
1,340,769
-1,435,897
-1,432,610
-475,606
155,466
-1,112,470
9,014,460
3,749,920
0
5,264,540
0
0
0
0
-7,037,892
-3,102,604
-1,465,766
-2,469,522
-391,385
-341,152
1,326,545
-1,376,778
-1,326,337
-489,761
139,221
-975,797
8,755,614
3,933,517
0
4,822,097
6,695,484
3,202,317
-1,201,344
5,100,521
-406,010
6,132,027
2,407,973
-817,659
4,914,384
-372,671
Revenues of the significant partner
12,026,462
8,947,550
2,851,678
170,900
56,334
12,026,462
8,947,550
2,851,678
170,900
56,334
Non-current assets as at 31.12.*
Current assets as at 31.12.*
Non-current liabilities as at 31.12.*
Current liabilities as at 31.12.*
92,288,385
13,847,226
8,580,209
4,713,911
47,418,564
7,114,823
4,408,585
2,422,048
16,463,594
2,470,247
1,530,649
840,928
26,901,752
4,036,419
2,501,102
1,374,089
1,504,475
225,736
139,874
76,846
91,930,837
39,096,444
1,935,748
4,306,528
46,617,212
19,825,417
981,599
2,183,797
17,567,627
7,471,179
369,914
822,961
26,039,200
11,073,979
548,296
1,219,814
1,706,798
725,869
35,939
79,956
Operating profit I.
Transfer of costs
Support activities
Other costs
Administrative costs
Operating profit II.
* In accordance with adopted guidelines (point 4.3 of the Financial Report - Segment reporting) assets and liabilities as at 31 December are allocated to operating segments in proportion to operating revenues.
115
Other
580,473
Annual Report 2014
5.3 NOTES ON THE CASH FLOW STATEMENT
The cash flow statement is compiled using the indirect method on the basis of balance sheet items as at 31 December
2014 and 31 December 2013, the income statement for 2014, and additional data necessary for the adjustment of
revenue and expenses. Pre-tax profit is adjusted for those revenue and expense items that affect profit or loss but are
not part of the cash flow.
It is evident from the cash flow statement that the company generated EUR 9,079,978 of cash flow from operating
activities, which together with the inflows from investing activities in the amount of EUR 104,106,855 was used to cover
the outflows from investing activities (EUR 78,539,014) and outflows from financing activities (EUR 34,969,127; primarily
relates to dividend payment in the amount of EUR 34,940,516).
Significant increases or decreases in individual items that impacted the company's cash flow are evident from
disclosures in the income statement, balance sheet and statement of changes in equity.
The company disclosed cash on transaction accounts in cash and cash equivalents.
5.4 FINANCIAL RISKS
The management of financial risks is explained in the risk management section in point 5 of the Business Report.
Credit risk
Company’s exposure to credit risk
Non-current financial assets
Current financial assets
Non-current operating receivables
Current operating receivables
Cash and cash equivalents
Total
2014
3,431,189
8,842,985
59,873
4,143,603
62,996
16,540,646
in euros
2013
6,072,657
33,981,640
59,873
4,212,034
381,781
44,707,985
The largest total exposure to credit risk in the company’s financial assets as at 31 December 2014 stood at EUR
16,540,646. Investments in financial assets in the amount of EUR 12,274,174 constitute the largest element of these
assets, of which EUR 3,431,189 is non-current assets and EUR 8,842,985 is current assets.
Financial assets (including an age/maturity breakdown and details of impairments created) are explained in points 5.1.4,
5.1.6, 5.1.7 and 5.1.8 of the Financial Report.
Liquidity risk
Liquidity risk is managed by the continual planning of cash flows, the coordination of the maturity of receivables and
liabilities, and a well-considered investment policy. The company is free of debt, and generates stable cash flows from
operating activities.
Interest rate risk
The company’s exposure to changes in market interest rates is low. The company has no interest-bearing liabilities,
while its investments in financial assets are adequately diversified.
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Annual Report 2014
Fair value
The financial assets and liabilities disclosed in the table below are, with the exception of available-for-sale financial
assets, measured at historical cost or amortised cost, which is assumed to be the same as the fair value of the assets or
liabilities.
The book value of available-for-sale financial assets is the same as the fair value. These financial assets are allocated
into following hierarchies:
Level 1: financial assets valued at quoted prices in an active market as at the final day of the accounting period,
Level 3: financial assets whose value cannot be obtained from market observables; the majority of this category
(EUR 629,265) relates to shares in Gorenjska banka d.d. that in connection with the note in point 5.1.4 of the
Financial Report (Available-for-sale financial assets) are valued at historical cost, but the category also includes
shares in Skupna pokojninska družba and a participating interest in IEDC Poslovna šola Bled d.o.o., in the total
amount of EUR 116,106 (valued at historical cost because there was no information based on which their fair
value could be estimated; in light of the available information about the performance of these two companies
and the amount of their capital there is no basis for the impairment of the assets).
Classification of financial instruments at fair value as at 31 December 2014
Investments in associates
Non‒current financial assets ‒ available‒for‒sale financial assets
Bonds
Quoted shares
Mutual funds
Unquoted shares and participating interests
Non‒current financial assets ‒ long‒term loans
Non‒current operating receivables
Available‒for‒sale assets
Current financial assets ‒ available‒for‒sale financial assets - bonds
Other current financial assets
Current operating receivables
Non‒current operating liabilities
Current operating liabilities
Classification of financial instruments at fair value as at 31 December 2013
Investments in associates
Non‒current financial assets ‒ available‒for‒sale financial assets
Bonds
Quoted shares
Financial assets managed by banks
Mutual funds
Unquoted shares and participating interests
Non‒current operating receivables
Current financial assets ‒ available‒for‒sale financial assets - bonds
Other current financial assets
Current operating receivables
Non‒current operating liabilities
Current operating liabilities
117
Level 1
0
2,664,540
Level 3
0
745,370
in euros
Total
0
3,409,910
806,911
276,837
1,580,792
0
0
0
0
745,370
806,911
276,837
1,580,792
745,370
0
0
0
159,815
0
0
0
0
21,279
59,873
411,392
0
8,683,170
4,143,603
7,220,362
4,538,217
21,279
59,873
411,392
159,815
8,683,170
4,143,603
7,220,362
4,538,217
Level 1
0
5,307,857
Level 3
3,147,369
745,370
in euros
Total
3,147,369
6,053,227
1,772,992
222,736
1,860,497
1,451,632
0
0
0
0
1,772,992
222,736
1,860,497
1,451,632
0
745,370
745,370
0
147,102
0
0
0
0
59,873
0
33,834,538
4,212,034
801,206
4,165,046
59,873
147,102
33,834,538
4,212,034
801,206
4,165,046
Annual Report 2014
5.5 OTHER EXPLANATORY NOTES
5.5.1 SIGNIFICANT EVENTS AFTER THE END OF 2014
At the 20th ordinary session of the general meeting (19 January 2015) convened at the request of the majority
shareholder Fraport AG Frankfurt Airport Services Worldwide, shareholders voted in favour of the transfer of
the remaining AELG shares held by minority shareholders to the principal shareholder. The consideration paid
to minority shareholders for the transfer of the shares was EUR 61.75 per share, the same as the price offered
in the takeover bid.
5.5.2 RELATED PARTIES
Until the change in the ownership of Aerodrom Ljubljana, d.d. in October 2014 (described in detail in point 1.2 of the
Business Report), as the company’s majority shareholder the Republic of Slovenia was also a related party in addition to
the associates, the members of the Supervisory Board and the members of the Management Board.
Transactions with related parties are concluded under market terms.
Since the change in ownership, all companies in the Fraport Group have been related parties, although there were no
transactions executed with related parties between the change in ownership and the end of the year.
Transactions with associates
The two associates are Adria Airways Tehnika, d.d. and Aerodrom Portorož, d.o.o.
The two investments in associates are described in detail in points 4.3 and 5.1.3 of the Financial Report.
Operating receivables and liabilities, operating revenues and expenses
Liabilities
31.12.2014
0
0
0
Transactions with associates
Aerodrom Portorož, d.o.o.
Adria Airways Tehnika, d.d.
Total
Receivables
31.12.2014
0
214,569
214,569
in euros
Expenses Revenues
1.‒12.2014 1.‒12.2014
0
17,637
90
441,686
90
459,323
Receivables for loans granted
Receivables from loans in the amount of EUR 4,440 from Aerodrom Portorož, d.o.o. and EUR 1,627,364 from Adria
Airways Tehnika, d.d. were disclosed under current financial assets as at 31 December 2014. The loan to Adria Airways
Tehnika, d.d. is secured via a lien on movable property (inventories of aircraft maintenance materials).
Transactions with the Slovenian government, state bodies and undertakings over which the government exercises
control or significant influence
Before the change in ownership, the Republic of Slovenia, government authorities and companies in which the
government has a controlling or significant influence were related parties of Aerodrom Ljubljana, d.d. during the first nine
months of 2014, for which reason we have reported only on revenues and expenses realised with these business
partners in the aforementioned period.
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Annual Report 2014
Transactions with the Slovenian government, state bodies and
government-owned undertakings
Slovenian government and state bodies
Adria Airways, d.d.
Total
Expenses
1.‒9.2014
527,603
75,874
603,477
in euros
Revenues
1.‒9.2014
1,793,205
9,780,609
11,573,814
The receivables from Adria Airways d.d. are secured by means of an agreement on fiduciary cession of 28 January 2014
(a new agreement was signed on 17 February 2015).
The company does business with other undertakings, bodies and agencies under the majority or minority ownership of
the Republic of Slovenia. All such transactions are concluded under normal market terms, under which transactions with
other parties are concluded. The company does not monitor transactions with these business partners in a manner that
differs in any way from the monitoring of transactions with other partners, and as a result this information is not
disclosed.
Ownership of associated individuals as at 31 December 2014
This disclosure is stated in point 4 of the Business Report.
Relations with members of the Management Board and Supervisory Board
in euros
Gross receipts of the Management Board in 2014
Zmago Skobir
Bernarda Trebušak
Dr Iztok Podbregar
Total
Fixed
earnings
107,922
100,025
99,572
307,519
Variable
earnings*
29,692
27,479
6,022
63,193
Benefits**
1,410
1,381
5,932
8,723
Reimbursement
of meal
allowance
1,261
1,218
1,335
3,814
Annual
leave
allowance
789
789
789
2,367
Total
141,074
130,892
113,650
385,616
* Includes 50% of the variable earnings for 2011, payment of which was deferred for a period of two years under the Act Governing the Remuneration of Managers and was made in 2014, and
50% of the variable earnings for 2013.
** Includes the use of company vehicles for private purposes (EUR 8,246), accident insurance (EUR 128), liability insurance (EUR 3) and health insurance with medical assistance abroad
(EUR 346 evrov).
in euros
Gross receipts of the Supervisory Board in 2014*
Milan Perović
Peter Grašek
Peter Marn
Nina Mauhler
Tadeja Strupi
Drago Čotar
Total
Fees for
participation
at meetings
5,115
6,435
5,775
6,160
5,115
5,500
34,100
* Includes remuneration for work on Supervisory Board Committees.
119
Reimbursement
Payment for
of travel
holding office
expenses
19,200
18,614
18,029
16,214
14,400
14,400
100,857
269
1,670
321
1,776
16
0
4,052
Total
24,584
26,719
24,125
24,150
19,531
19,900
139,009
Annual Report 2014
5.5.3 DISCLOSURE IN ACCORDANCE WITH POINTS 12 AND 13 OF ARTICLE 69 OF THE ZGD-1
The company did not have, nor does it have, any business operations that have not been disclosed in the balance sheet
and that would, in light of the risks and benefits arising there from, be material for assessing the financial position of the
company.
The company also did not have, nor does it have, any transactions with associated parties that could be regarded as
material and that have not been performed under market conditions.
5.5.4 EARNINGS OF EMPLOYEES IN 2014 ON THE BASIS OF A CONTRACT TO WHICH THE TARIFF PORTION OF
THE COLLECTIVE AGREEMENT DOES NOT APPLY
in euros
2014
821,042
10,919
11,048
843,009
Wages
Benefits*
Annual leave allowance
Total
* Includes the private use of company vehicles (EUR 9,178), accident insurance (EUR 477), liability insurance (EUR 15), benefits for
travel expenses (EUR 34), health insurance with medical assistance abroad (EUR 669) and benefits for a gift (EUR 546).
The earnings cited in the above table do not include the remuneration of the company’s Management Board.
5.5.5 TOTAL PAYMENTS TO AUDITORS
In 2014 the company paid EUR 43,250 for auditing and EUR 10,080 for advisory services.
120