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million and represents the carrying amount of the Company’s participation in the equity of Athens Airport Fuel
Pipeline Company SA.
• The Company’s Closing Cash position is €220.5 million. The cash surplus is invested in time deposits, in order to
minimise the risk, while increasing investments’ yield. As a result of this investment policy, AIA did not possess any
investments in securities as of December 31st, 2010.
• The Company is exposed to financial risks such as to price, credit, liquidity and concentration risks. The nature of the
risks as well as the scope and the policies of the Company for the management of the financial risks are presented in
Section 3 of the Notes to the Financial Statements.Other risks and uncertainties related to tax disputes and municipal
charges disputes with the Greek State and with one of the surrounding municipalities are analytically referred to the
note 5.28 of the Notes to the Financial Statements.
5. 2011 Outlook
2011 is admittedly a critical year for the Greek economy. It is expected to be a year of negative GDP development, of
structural changes and of continuing efforts to improve the budget deficit and debt problems of the Greek State. As
such, the macroeconomic situation will have its influence on the Company’s short-term outlook.
The 2011 traffic will be affected by the reduced travel demand for Greek residents as a result of the recessionary
phenomena. Nevertheless, the growth in the rest of Europe will favour the international segments of AIA’s traffic. The
prospects of Athens city image and of the Greek tourism at large, are critical factors for the development of the 2011
traffic.
The recent announcement by the European Commission of the blockage of the Olympic-Aegean merger means that
developments in the Athens aviation market may take place. Currently, we expect a gradual adjustment of the two airlines
in the wider market and economic conditions, by limited restructuring, cost optimisation and network consolidation.
As a result of the above, the Airport Company projects for 2011 an annual passenger throughput of 14.8 million,
corresponding to estimated operating revenues of €335 million.
During this quite turbulent year for the Greek economy and the aviation market, the Company’s Management twice
updated its business and financial projections for the mid- and long-term. Despite the unfavourable short-term outlook,
the Company projects a gradual market recovery, which will result in a sustainable growth with healthy financial
projections in the medium term.
In 2011 we will cross the midpoint of the existing concession period. As foreseen in Article 4 of the ADA, the Greek
State has expressed its intention to explore the option of extending the period of the concession agreement with AIA,
and to explore the best options for the Greek State’s shareholding in the Company. Consequently, in 2011 we expect
to undertake the relevant discussions with the Greek State, aiming at agreeing at an extended concession period under
terms which will increase value for the Company and its stakeholders.
Despite the difficult macroeconomic conditions in Greece, AIA further strengthens its status as a healthy corporate
entity, distinguished for the quality of its services, its financial performance and its social responsibility. In a period
of uncertainty our Company continues to radiate optimism as a source for financial and non-financial value for all
stakeholders.
Spata, 28 April 2011
For the Board of Directors of Athens International Airport S.A.
Prof. Stratos Papadimitriou Page 10 of 51
Chairman
Financial Statements as at 31 December 2010 (Amounts in Euros unless otherwise stated)
Pipeline Company SA.
• The Company’s Closing Cash position is €220.5 million. The cash surplus is invested in time deposits, in order to
minimise the risk, while increasing investments’ yield. As a result of this investment policy, AIA did not possess any
investments in securities as of December 31st, 2010.
• The Company is exposed to financial risks such as to price, credit, liquidity and concentration risks. The nature of the
risks as well as the scope and the policies of the Company for the management of the financial risks are presented in
Section 3 of the Notes to the Financial Statements.Other risks and uncertainties related to tax disputes and municipal
charges disputes with the Greek State and with one of the surrounding municipalities are analytically referred to the
note 5.28 of the Notes to the Financial Statements.
5. 2011 Outlook
2011 is admittedly a critical year for the Greek economy. It is expected to be a year of negative GDP development, of
structural changes and of continuing efforts to improve the budget deficit and debt problems of the Greek State. As
such, the macroeconomic situation will have its influence on the Company’s short-term outlook.
The 2011 traffic will be affected by the reduced travel demand for Greek residents as a result of the recessionary
phenomena. Nevertheless, the growth in the rest of Europe will favour the international segments of AIA’s traffic. The
prospects of Athens city image and of the Greek tourism at large, are critical factors for the development of the 2011
traffic.
The recent announcement by the European Commission of the blockage of the Olympic-Aegean merger means that
developments in the Athens aviation market may take place. Currently, we expect a gradual adjustment of the two airlines
in the wider market and economic conditions, by limited restructuring, cost optimisation and network consolidation.
As a result of the above, the Airport Company projects for 2011 an annual passenger throughput of 14.8 million,
corresponding to estimated operating revenues of €335 million.
During this quite turbulent year for the Greek economy and the aviation market, the Company’s Management twice
updated its business and financial projections for the mid- and long-term. Despite the unfavourable short-term outlook,
the Company projects a gradual market recovery, which will result in a sustainable growth with healthy financial
projections in the medium term.
In 2011 we will cross the midpoint of the existing concession period. As foreseen in Article 4 of the ADA, the Greek
State has expressed its intention to explore the option of extending the period of the concession agreement with AIA,
and to explore the best options for the Greek State’s shareholding in the Company. Consequently, in 2011 we expect
to undertake the relevant discussions with the Greek State, aiming at agreeing at an extended concession period under
terms which will increase value for the Company and its stakeholders.
Despite the difficult macroeconomic conditions in Greece, AIA further strengthens its status as a healthy corporate
entity, distinguished for the quality of its services, its financial performance and its social responsibility. In a period
of uncertainty our Company continues to radiate optimism as a source for financial and non-financial value for all
stakeholders.
Spata, 28 April 2011
For the Board of Directors of Athens International Airport S.A.
Prof. Stratos Papadimitriou Page 10 of 51
Chairman
Financial Statements as at 31 December 2010 (Amounts in Euros unless otherwise stated)
