Financial statement

General

RAI Holding B.V. has its registered office in Amsterdam (Europaplein 24), Chamber of Commerce number 33093880. The company’s financial year runs from 1 January to 31 December.

Activities

RAI Holding B.V. is een holdingmaatschappij. De belangrijkste activiteiten van de RAI zijn zowel gericht op het accommoderen van de eigen evenementen, als het beschikbaar stellen van de faciliteiten aan derden ten behoeve van beurzen, congressen, corporate events, theaterproducties en niche events.

Continuity

These consolidated financial statements have been prepared assuming that the company will continue as a going concern.

General principles for valuations

The annual accounts were drawn up in accordance with the generally accepted principles for financial reporting in the Netherlands and meet the legal provisions regarding the annual accounts as recorded in Part 9, Book 2 of the Netherlands Civil Code (BW). The principles for the valuation of assets and liabilities were applied consistently during the previous and current year. The principles for valuation and result determination apply to both the consolidated and company annual accounts.

Shareholder structure

The RAI Association has a 75 per cent interest in RAI Holding B.V. The remaining 25 per cent of the shares are held by the Municipality of Amsterdam.

Principles of consolidation

The financial data of RAI Holding B.V. and all its group companies are consolidated. Group companies are participations over which RAI Holding B.V. has decisive control. The other participating interests are not consolidated.

The financial information of companies acquired during the year under review is consolidated from the moment that RAI Holding B.V. acquires decisive control over the companies concerned until the moment this control is terminated. Transactions between companies that are consolidated are eliminated.

The company owns 100% of the shares in the following participations: RAI Amsterdam B.V., Amsterdam; Arfora B.V., Amsterdam.

These group companies include the results of the following indirect participations (100%): RAI Solar Energy B.V., Amsterdam; Amsterdam RAI Catering B.V., Amsterdam; RAI USA, Inc., Delaware; Rui Ang Exhibition and Convention Co., Ltd., Shanghai; RAI TURKEY ULUSLARARASI FUARCILIK VE GOSTERI HIZMETLERI ITHALAT IHRACAT TICARET LIMITED SIRKETI, Istanbul. The company in Turkey was established in 2016. In addition, the result of the following indirect participation (50%): IBEX LLC, Maine USA, was also included.

Foreign currency

The functional currency is the euro. Assets and liabilities denominated in foreign currency are converted into euros at the exchange rate valid on the date of the balance sheet. Transactions in foreign currencies are converted at the exchange rates at the time of the transaction. The exchange difference that results from the denomination is included in the profit and loss account.

Use of estimates

In order to help determine the included figures when drawing up the annual accounts, the management of RAI Holding B.V. makes certain estimates and suppositions in accordance with the generally accepted principles of financial reporting. The factual results can deviate from these estimates.

The estimates and underlying suppositions are regularly evaluated. Revisions of estimates are recorded in the period in which the estimate is revised and in future periods that are affected by the revision.

On 1 November 2016 there was a change in estimate regarding the economic life of the activated long-term land lease from 2018 to 2066. As the economic life was extended, the future depreciation period was adjusted accordingly. As a result of the change in estimate, the result before taxes over the reporting year 2016 is €34,348 higher. It is expected that the result before taxes will be approximately €206,087 higher due to the change in estimate in the coming reporting years.

Financial tools

Financial tools include both primary financial tools such as receivables or debts, and financial derivatives. For the principles of the primary financial tools, see the description per balance sheet item.

RAI Holding B.V. applies hedge-accounting based on documentation for each individual hedge relation, and documents how the hedge relations fit in with the goals of the risk management, hedge strategy and the expectations regarding the effectiveness of the hedge.

The effective part of the financial derivatives assigned to cost-price hedge-accounting is valuated at cost value and the ineffective part is valuated at fair value. The valuation changes of the fair value of the ineffective part are immediately processed in the profit and loss account.

Principles for the valuation of assets and liabilities

Assets and liabilities are stated at their nominal value, unless otherwise indicated in the separate items in the explanatory notes.

Intangible fixed assets

Externally obtained exhibition titles are valued at cost price or market value if lower, and are depreciated over their economic life, which is assumed to be 20 years at most.

The economic life for the IBEX exhibition title is assumed to be 15 years at most.

Software is valued at historic cost and is depreciated over its economic life, which is assumed to be ten years at most. Operating rights are valued at acquisition price and depreciated annually based on the term of these rights.

Tangible fixed assets

Tangible fixed assets are valued at their acquisition price, minus straight-line depreciation based on their economic life and minus any special depreciation.

Maintenance costs for buildings owned are immediately charged to the results, or entered as assets and depreciated if the asset criteria allow it. The depreciation calculation takes the residual value into account. This residual value is expected to be nil in all cases.

Financial fixed assets

Participating interests over which significant control is exercised over their business and financial policy are stated at their net asset value determined on the basis of the accounting principles of RAI Holding B.V.

Participating interests over which no significant control is exercised are stated at the acquisition price or current value if lower. Receivables from and loans to participating interests as well as other receivables are stated at the fair value in the first processing, and then valued at the amortised cost minus the necessary provisions.

Special depreciation of fixed assets

An evaluation is made each year to see whether there are any indications that intangible, tangible or financial fixed assets are subject to special depreciation. Special depreciations apply when the balance sheet value of the asset is higher than the realisable value. If there is a case of special depreciation, then the relevant asset is devalued to the realisable value. The loss is immediately processed as expense in the profit and loss accounts.

Receivables

Receivables are stated at the fair value in the first processing, and then valued at the amortised cost, which is the same as the nominal value minus any provisions for doubtful debts. These provisions are determined based on an individual assessment of the receivables.

The receivables have an expected term of up to one year, unless stated otherwise.

Stock

The stock mainly involves food & beverage products of which the valuation is determined at acquisition costs, minus a provision for obsolescence, where necessary.

Securities

Securities are stated at their cost or market value on the balance sheet date, whichever is the lower. The market value is in principle equal to the value quoted on the stock exchange. If a sale is expected in the short term, the directly realisable value is considered the market value.

Liquidities

Liquidities are at the disposal of the company.

Provisions

Provisions are included for all rightful enforceable or factual obligations resulting from an event before the balance sheet date, which are expected to require an export of capital for the fulfilment thereof and of which the scope can be reliably estimated.

A provision for long-service payments is included based on the valid long-service regulations per balance sheet date, taking into account the likelihood of continued employment, future labour cost developments and discount provisions.

A provision is included for bonus schemes and participations based on relevant performance schemes. This provision is included under current liabilities.

Pension provision

The company has two active pension schemes for its employees. Employees who started working for the company before 1 January 2013 are subject to a pension provision that qualifies as a defined benefit plan, in which the defined pension payments are based on average pay. This pension scheme has been placed with a pension insurer, and is processed in the financial statement as a defined contribution scheme due to the fact that the obligations for realising this pension scheme are entirely reinsured.

Employees who started working for the company since 1 January 2013 or those who have voluntary switched to the new pension scheme are subject to a premium scheme with the nature of a defined contribution agreement in which the company obligations are limited to making an annual contribution to the insurance company. Future payable contributions will partly depend on the development of the employment conditions and the yield on the invested contributions achieved by the insurer.

Long-term liabilities

Long-term liabilities include debts with a remaining term of over one year. These debts are stated at the fair value in the first processing, and then valued at the amortised cost.

Short-term liabilities

Short-term liabilities have an expected term of less than one year. A provision is included for bonus schemes and participations based on relevant performance schemes. There is also a provision included for contractual agreements with employees.

Tax deferrals

Temporary differences between the determination of profit for commercial and tax purposes are stated at their nominal value in the balance sheet as a tax deferral or asset. Deferred claims for corporation tax on account of tax-deductible losses are valued at the future tax rate known on the balance sheet date in so far as it can reasonably be expected that the claims are realisable.

RAI Holding B.V. is the leading company of a group that is treated as a single entity for tax purposes. The other members of the group are: RAI Amsterdam B.V., RAI Solar Energy B.V., Amsterdam RAI Catering B.V. and Arfora B.V.

Principles for determination of results

Revenue

The financial statements have been prepared on the basis of the historical cost convention. Revenue and expenses are accounted for in the period in which the goods or services are supplied. For exhibitions and events this is the period in which the event takes place. Profits are accounted for in that period. Losses and risks that originated before the end of the financial year are processed if and insofar as they became known before the annual accounts were drawn up.

Depreciation

The depreciation on tangible fixed assets is calculated on a linear basis by reference to the expected economic life.

The applied depreciation rates are between 2% and 20%. The depreciation of the intangible fixed assets is related to the acquisition value, and ranges between 5% and 20%. Possible residual values of tangible and/or intangible fixed assets are not taken into account.

Financial revenue and expenditure

The financial revenue and expenditure involve the exchange differences, interest revenue and costs attributable to the period concerned.

Participating interest results

The participating interest results concern the share of the company in the results of the net asset value of the participating interests. The share that the company is due is stated as the result of a specific participating interest in the participating interest results.

Corporation tax

The corporation tax is calculated on the commercial pre-tax profit, taking into account the tax facilities. The mutation in the provision for deferred corporation tax is taken into account in the calculations.

Cash flow statement

The cash flow statement has been drawn up in accordance with the indirect method. The resources in the cash flow statement consist of liquidities and bank credits.

1.1. Consolidated balance sheet (before proposed appropriation of results)

Consolidated balance sheet

Before proposed appropriation of results, amounts x €1,000

Consolidated balance sheet
  Ref.   2016   2015
           
ASSETS          
           
Fixed assets          
           
Intangible fixed assets 1.1.1. 10,239   4,285  
Tangible fixed assets 1.1.2. 170,787   166,217  
Financial fixed assets 1.1.3. 1,134   1,134  
      182,160   171,636
           
Current assets          
           
Stock   315   403  
Receivables 1.1.4. 22,637   29,162  
Securities   41   41  
Liquidities   742   529  
      23,735   30,135
           
      205,895   201,771
           
LIABILITIES          
           
Shareholder equity 1.1.5.        
           
Subscribed capital   2,730   2,730  
Share premium reserves   22,006   22,006  
Other reserves   58,070   57,733  
Unappropriated profit   5,048   4,214  
      87,854   86,683
           
Provisions 1.1.6.        
           
Tax deferral   535   508  
Other provisions   1,506   1,600  
      2,041   2,108
           
Debts          
           
Long-term liabilities 1.1.7.   61,395   59,951
           
Short-term liabilities 1.1.8.   54,605   53,029
           
      205,895   201,771

2.1. Consolidated profit and loss account

Consolidated profit and loss account

Amounts x €1,000

Consolidated profit and loss account
  Ref.   2016   2015
           
Net turnover 2.1.1. 120,202   126,151  
           
Sum of operating revenues     120,202   126,151
           
Costs of outsourced work and other external costs 2.1.2. 47,084   58,614  
Wages and salaries 2.1.3. 23,547   21,973  
Social security contributions   3,257   3,273  
Pension contributions   2,177   2,536  
Amortisation of tangible and intangible fixed assets 2.1.4. 14,979   13,778  
Other operating expenses (including other personnel costs) 2.1.5. 19,718   17,034  
           
Sum of operating expenses     110,762   117,208
           
Operating results     9,440   8,943
  2.1.6.   ‑2,592   ‑3,260
           
Profit on ordinary activities before tax     6,848   5,683
Taxes on profit on ordinary activities 2.1.7.   ‑1,800   ‑1,469
           
Results after tax     5,048   4,214
           
Direct changes in equity      
           
Overall result of the legal entity     5,048   4,214

3.1. Consolidated cash flow statement

Consolidated cash flow statement

Amounts x €1,000

Consolidated cash flow statement
      2016   2015
           
Cash flow from operational activities          
           
Operating profit     9,440   8,943
           
Adaptations for:          
Depreciation on intangible or tangible fixed assets   14,979   13,778  
Changes in long-term liabilities   1,459   ‑158  
Changes in provisions   ‑67   ‑1,334  
      16,372   12,444
           
Changes in stock and receivables   6,613   37  
Changes in short-term debts (excluding bank credit)   ‑2,513   2,602  
      4,100   2,639
           
Paid interest   ‑1,936   ‑2,629  
Paid taxes on profit from ordinary activities   ‑1,783   ‑1,731  
      ‑3,719   ‑4,360
Total cash flow from operational activities     26,192   19,666
           
Cash flow from investment activities          
           
Net investment in tangible fixed assets   ‑18,270   ‑16,752  
Net investment in intangible fixed assets   ‑3,916   ‑842  
Net disinvestment in financial fixed assets      
           
Total cash flow from investment activities     ‑22,186   ‑17,594
           
Cash flow from financing activities          
           
Dividend payment   ‑3,207   ‑2,262  
Redemption of long-term liabilities in reporting year   ‑15   ‑2,165  
           
Total cash flow from financing activities     ‑3,222   ‑4,585
           
Changes in liquidities and bank credit     784   ‑2,513
           
Cash and bank credit as on 1 January     ‑10,242   ‑7,729
           
Cash and bank credit as on 31 December     ‑9,458   ‑10,242

Notes on the consolidated balance sheet as on 31 December 2016

1.1.1. Intangible fixed assets

Intangible fixed assets

Amounts x €1,000

Intangible fixed assets
  Exhibition titles Software Other Work in
progress
Total
           
Cost as on 1-1-2016 872 7,797 1,684 383 10,736
Investments 6,356 473 404 7,233
Finished work in progress 411 ‑411
Disinvestments ‑216 ‑71 ‑287
Cost as on 31-12-2016 7,012 8,610 1,684 376 17,682
           
Depreciation and amortisation as on 1-1-2016 763 4,565 1,123 6,451
Depreciation 46 1,181 52 1,279
Disinvestments ‑216 ‑71 ‑287
Depreciation and amortisation as on 31-12-2016 593 5,675 1,175 7,443
           
Book value as on 1-1-2016 109 3,232 561 383 4,285
           
Book value as on 31-12-2016 6,419 2,935 509 376 10,239

Investments in exhibition titles are depreciated over a maximum period of 20 years. An impairment test on titles that were externally acquired in the past is performed annually. Software is depreciated over a period of ten years at most, calculated from the time it is first used.

The ‘other’ category primarily concerns the use of a lounge in the Amsterdam ArenA. These rights will be depreciated until the year 2026. Disinvestments are related to assets that are no longer used.

1.1.2. Tangible fixed assets

Tangible fixed assets

Amounts x €1,000

Tangible fixed assets
  Buildings,
installations
and land
Inventory Work in
progress
Total  
           
Cost as on 1-1-2016 310,936 27,806 8,686 347,428  
Investments 14,923 955 2,392 18,270  
Finished work in progress 7,863 102 ‑7,965  
Disinvestments ‑2,581 ‑441 ‑3,022  
Cost as on 31-12-2016 331,141 28,422 3,113 362,676  
           
           
Depreciation and amortisation as on 1-1-2016 162,298 18,848 65 181,211  
Depreciation 9,975 2,944 ‑65 12,854  
Disinvestments ‑1,735 ‑441 ‑2,176  
Depreciation and amortisation as on 31-12-2016 170,538 21,351 ‑0 191,889  
           
Book value as on 1-1-2016 148,638 8,958 8,621 166,217  
           
Book value as on 31-12-2016 160,603 7,071 3,113 170,787  

Buildings and land are depreciated over a period of 50 years, the Convention Centre over a period of 20 years, and installations over a period of 10 to 20 years. The other fixed assets are depreciated over a period of five to 20 years.

The book value of land subject to a long lease until 2028 on 31 December 2016 is €3,254,614 (2015: €3,529,652). Disinvestments are related to fixed assets that are no longer used.

1.1.3. Financial fixed assets

Financial fixed assets

Amounts x €1,000

Financial fixed assets
  Total        
           
Balance as on 1-1-2016 1,134        
Other changes        
           
Balance as on 31-12-2016 1,134        

The financial fixed assets refer to a capital interest in Stadion Amsterdam CV of 1/9 share of the limited capital. The valuation of this capital interest is valued at the acquisition price or current value if lower.

1.1.4. Current assets, receivables

Current assets, receivables

Amounts x €1,000

Current assets, receivables
  2016 2015      
           
Trade receivables 14,233 18,343      
Provision for doubtful debts ‑1,833 ‑1,467      
  12,400 16,876      
Other receivables 4,315 4,773      
Corporation tax 136      
Accrued assets 5,786 7,513      
           
  22,637 29,162      

The other receivables include, among other items, yet to be billed invoices to an amount of €2,918,384 (2015: €3,612,080) and receivables related to the pension provision to an amount of  €717,141 (2015: €702,004).

The accrued assets include, among other items, costs paid in advance to the amount of €315,450 (2015: €1,948,423) and paid personnel costs for future exhibitions to an amount of €4,877,950 (2015: €5,563,838).

1.1.5. Shareholder equity

For an explanation of the mutations in the shareholder equity in 2016 and 2015, see the notes on the company annual accounts of RAI Holding B.V. (see 4.1.2.). There were no direct changes in the shareholder equity during the financial year.

1.1.6. Provisions

Provisions

Amounts x €1,000

Provisions
  Tax
deferral
Other Total    
           
Balance as on 1-1-2016 508 1,600 2,108    
Allocation 396 237 634    
Withdrawal ‑369 ‑331 ‑701    
           
Balance as on 31-12-2016 535 1,506 2,041    

The passive deferred tax consists of the differences between commercial and tax-based valuation.

The other provisions mainly involve individual redundancies, a provision for long-service payments and other personnel-related provisions. The above provisions, with the exception of the individual redundancies, are mainly of a long-term nature.

1.1.7. Long-term liabilities

Long-term liabilities

Amounts x €1,000

Long-term liabilities
  2016 2015      
           
Loans Deutsche Bank AG 26,000 26,000      
Loan Coöperatieve Rabobank Amsterdam U.A. 26,000 26,000      
Loan Triodos Bank 253 268      
Loan Klimaatfonds Amsterdam 100 100      
Other liabilities 9,042 7,583      
           
  61,395 59,951      

Overview of long-term loans

As on 31 December 2016, amounts x €1,000

Overview of long-term loans
  Principle Payment in
book year
Amount
remaining
   
           
Loan Deutsche Bank AG 26,000 26,000    
Loan Coöperatieve Rabobank Amsterdam U.A. 26,000 26,000    
Loan Triodos Bank 283 15 268    
Loan Klimaatfonds Amsterdam 100 100    
Other liabilities 9,974 154 9,820    
           
  62,357 169 62,188    
Minus short-term part of long-term liabilities     793    
           
      61,395    

In 2013 the RAI entered into a credit agreement with Deutsche Bank AG and Coöperatieve Rabobank Amsterdam U.A. This credit agreement comprises an overdraft facility of €30 million as well as two loans totalling €52 million (50% Deutsche Bank AG and 50% Coöperatieve Rabobank Amsterdam U.A.) until 2020.

In 2016 the RAI established an additional credit facility with Deutsche Bank AG and Coöperatieve Rabobank Amsterdam U.A., consisting of a current account of US$ 6.7 million at Coöperatieve Rabobank Amsterdam U.A. As part of this agreement, it was agreed that the current account of Coöperatieve Rabobank Amsterdam U.A. is reduced by €3 million and the current account of Deutsche Bank AG is increased by €3 million. This way both banks are a 50% credit provider. The current account of US$ runs until 2020.

The rate of interest on the loans is Euribor + 1.70%.

In 2013 the RAI entered into an interest swap agreement, based on which RAI Holding B.V. pays an interest rate of 1.54% over an amount of €48 million.

The business premises at Europaplein have been mortgaged as security for the repayment of the long-term debts and overdraft facility.

A credit agreement with the Triodos Bank for the financing of solar panels was concluded in 2014. It consists of a loan of €0.29 million for the period until 1 January 2034. The loan is being repaid in 79 quarterly terms, starting 1 July 2014. The interest rate is 3.5% on an annual basis for the period until 17 January 2026.

A credit agreement to finance solar panels was concluded with the Amsterdam Investment Fund of the Municipality of Amsterdam in 2014. It consists of a loan of €0.1 million for the period until 5 March 2029. The loan will be repaid at the latest by 5 March 2029 and the interest rate is 0%.

The other long-term debts consist of a lump-sum payment received in 1988 from the Municipality of Amsterdam for the operating losses of the Convention Centre in the period until 2038. This lump-sum payment was acquired in the past for an interest of 7.46%. This lump-sum payment is mainly of a long-term nature. The release benefits the operational costs. The annual interest increase is at the expense of the financial revenue and expenditure.

Of the long-term liabilities, a total of €3.3 million has a term of over five years.

1.1.8. Short-term liabilities

Short-term liabilities

Amounts x €1,000

Short-term liabilities
  2016 2015      
           
Bank overdrafts 10,200 10,771      
Short-term part of long-term liabilities 793 778      
Debts to shareholders 670      
Advance payments 20,284 22,686      
Debts to suppliers 5,694 6,941      
Corporation tax 359      
Other taxes and social security contributions 1,876 426      
Accruals and deferred income 15,089 11,068      
           
  54,606 53,029      

The accruals and deferred income largely consist of receivable invoices for costs made to an amount of €6,099,937 (2015: €7,615,345) and accruals and deferred income related to personnel to an amount of €3,262,482 (2015: €3,169,456).

Off-balance sheet information

  1. There are no contractual commitments under tenancy agreements (2015: none).
  2. No bank guarantees were issued (2015: none).
  3. There are operating lease commitments for 44 cars (2015: 46). At the end of the financial year the contractual commitments totalled €910,091 (2015: €810,719), of which €360,041 is due within one year. The remainder is due within five years.
  4. A total of €588,686 (2015: €634,593) in lease payments was made in 2016.
  5. In 2017 an agreement was reached with the Municipality of Amsterdam, Land Lease and Land Issuance and Development department on an advanced change of the long-term land lease agreement. The new agreement has a term of 50 years until 30 October 2066. The available part of the capitalised acquired long-term land lease as of 1 November 2016 will be depreciated over the new term of 50 years. The total liability for long-term land lease (until 2066) is €12,976,314 of which an amount of €259,526 is due within one year. An amount of €1,297,631 is due within five years. The remainder involves the period 2022 to 2066.
  6. RAI Holding is the leading company of a group that is treated as a single entity for corporation and turnover tax purposes. The other members of the group are: RAI Amsterdam, RAI Solar Energy, Amsterdam RAI Catering and Arfora B.V. Each company is severally liable for the liabilities of the fiscal entity.
  7. Liabilities were incurred of € 471,260 related to the construction of Strandzuid city beach.

Financial tools

The risks associated with the financial tools are clarified below.

Credit risk

In order to manage the credit risk, exposure is constantly monitored and acted upon. There was no major concentration of credit risks at the end of the financial year. Credit risks relate to debtors and other short-term receivables. Sufficient provisions were included accordingly.

Currency risk

There are no substantial currency risks as the operational cash flows and financing activities mainly take place in euros.

Interest risk

Interest risks mainly concern long-term loans. Amsterdam RAI B.V. has interest rate swap contracts to cover interest risks. In order to fix the interest rates, interest rate swaps amounting to €48 million at the end of 2016 were concluded in 2013 for the period until 2020. RAI Amsterdam B.V. pays an interest rate of 1.54% on the interest swap with Deutsche Bank AG/Coöperatieve Rabobank Amsterdam U.A. A variable interest rate of three months Euribor plus an individual surcharge is paid on the bank overdrafts. The amounts covered by the interest swaps are smaller than or equal to the outstanding principle of the loans from Deutsche Bank AG/Coöperatieve Rabobank Amsterdam U.A. On 31 December 2016, the interest swaps had a fair value of minus €2,696,262 (2015: minus €2,969,000). The nominal value will be reduced to zero over the remaining interest swap period (until 2020).

Notes on the consolidated profit and loss accounts 2016

2.1.1. Turnover

Turnover

Amounts x €1,000

Turnover
  2016 2015      
           
By geographical area          
           
The Netherlands 116,143 117,478      
Other countries 4,059 8,673      
           
  120,202 126,151      
           
By activity          
           
Exhibitions and events 50,236 56,871      
Letting to third parties 19,787 18,102      
Catering 14,461 15,547      
Parking 5,036 5,898      
Hotel commissions 2,555 3,285      
Facility Services 26,130 24,334      
Other 1,997 2,114      
           
  120,202 126,151      

2.1.2. Costs of outsourced work or other external costs

Costs of outsourced work or other external costs

Amounts x €1,000

Costs of outsourced work or other external costs
  2016 2015      
           
Exhibitions and events 16,894 27,012      
Letting to third parties 2,401 1,743      
Outsourcing costs 7,131 6,634      
Catering 5,179 4,791      
Personnel 7,487 7,253      
Marketing costs 3,300 5,995      
Other 4,692 5,186      
           
  47,084 58,614      

2.1.3. Personnel costs

The salary paid to (former) Board members (3) in 2016 totalled €660,073.50. In 2015, the Board of RAI Holding B.V. consisted of one person. Based on Article 383 section 1 book 2 BW from the Netherlands Civil Code, the salary paid that year is therefore not included in this statement.

The salary paid to Supervisory Board members (average of 4) amounted to €104,125 (in 2015: €106,682, average of 4).

Average number of employees

In FTE, working for the group

Average number of employees
  2016 2015      
           
In the Netherlands 374 375      

Personnel, by discipline

Percentage / FTE (balance at the end of the year)

Personnel, by discipline
  2016 2015      
           
BY DISCIPLINE          
           
Commercial 51% 50%      
Operational 36% 40%      
Financial/staff 13% 10%      
Total 100% 100%      

2.1.4. Depreciation on intangible and tangible fixed assets

The depreciation on intangible and tangible fixed assets consists of €14.1 million in regular depreciations and €0.8 in book losses on disinvested tangible fixed assets.

2.1.5. Other operational costs

Other operational costs

Amounts x €1,000

Other operational costs
  2016 2015      
           
Building costs 9,552 7,809      
Agency costs 694 715      
Automation costs 4,404 4,042      
Consultancy costs 2,490 2,067      
Travel, accommodation and representation costs 916 898      
Other personnel costs 1,253 1,248      
Other general operational costs 409 255      
           
  19,718 17,034      

Auditors’ costs
In accordance with Article 382a Book 2 of the Netherlands Civil Code, an amount of €73,260 (2015: €76,550) is due to BDO Audit & Assurance B.V., of which €70,000 (2015: €70,000) relates to the annual audit, and €3,260 to other audit assignments.

 

2.1.6. Interest expenses and similar costs

Interest expenses and similar costs

Amounts x €1,000

Interest expenses and similar costs
  2016 2015      
           
Interest expenses 2,592 3,260      

2.1.7. Taxes

Taxes

Amounts x €1,000

Taxes
  2016 2015      
           
Deferred corporate tax ‑369 ‑834      
Acute corporate tax current book year 2,133 2,222      
Corporate tax previous years 36 81      
           
Tax charged in the profit and loss account 1,800 1,469      

The effective taxation rate over 2016 is 26.2% (2015: 25.8%) which is in line with the generally applicable tax rate in the Netherlands.

4.1. Company balance sheet (before appropriation of results)

Company balance sheet

Before appropriation of results, amounts x €1,000

Company balance sheet
ASSETS ref.   2016   2015
           
Fixed assets          
           
Financial fixed assets 4.1.1. 113,092   108,044  
           
      113,092   108,044
           
LIABILITIES          
           
Shareholder equity 4.1.2.        
           
Issued capital   2,730   2,730  
Share premium   22,006   22,006  
Other reserves   58,070   57,733  
Unappropriated profit   5,048   4,214  
      87,854   86,683
           
Debts          
Debts to group companies 4.1.3.   25,238   21,361
           
      113,092   108,044

5.1. Company profit and loss account

Company profit and loss account

Amounts x €1,000

Company profit and loss account
  2016 2015      
           
Company result after taxes      
Result from participating interest after taxes 5,048 4,214      
           
Net result 5,048 4,214      

The corporate profit and loss account has been drawn up in accordance with Article 402 of Book 2 of the Netherlands Civil Code.

The financial data of RAI Holding B.V. is included in the consolidated annual account. As a result, the profit and loss account of RAI Holding B.V. only states the share in profits after taxation of participating interests and the other result after taxes, in accordance with Article 402 of Book 9 of the Netherlands Civil Code.

Notes on the company balance sheet as on 31 December 2016

4.1.1. Financial fixed assets

Financial fixed assets

Amounts x €1,000

Financial fixed assets
  Participation in
group companies
       
           
Balance as on 1-1-2016 108,044        
Result 5,048        
           
Balance as on 31-12-2016 113,092        

The company owns 100 percent (unless otherwise stated) of the shares in the following major participations: RAI Amsterdam B.V., Amsterdam; Arfora B.V., Amsterdam.

The results of these group companies include those of the following indirect participations (100%): RAI Solar Energy B.V., Amsterdam; Amsterdam RAI Catering B.V., Amsterdam; RAI USA, Inc., Delaware; Rui Ang Exhibition and Convention Co., Ltd., Shanghai and RAI TURKEY ULUSLARARASI FUARCILIK VE GOSTERI HIZMETLERI ITHALAT IHRACAT TICARET LIMITED SIRKETI, Istanbul. The company in Turkey was established in 2016.

4.1.2. Shareholder equity

Shareholder equity

Amounts x €1,000

Shareholder equity
  Share capital Share
premium
Other
reserves
Unapprop. profit Total
           
Balance as on 1-1-2015 2,730 22,006 50,738 9,257 84,731
Appropriation of profit 9,257 ‑9,257
Result book year 4,214 4,214
Dividend ‑2,262 ‑2,262
           
Balance as on 31-12-2015 2,730 22,006 57,733 4,214 86,683
           
           
Balance as on 1-1-2016 2,730 22,006 57,733 4,214 86,683
Appropriation of profit 4,214 ‑4,214
Result book year 5,048 5,048
Dividend ‑3,877 ‑3,877
           
Balance as on 31-12-2016 2,730 22,006 58,070 5,048 87,854

The authorised capital is €13,650,000, divided into 225,000 ordinary ‘A’ shares and 75,000 ordinary ‘B’ shares, each having a nominal value of €45.50. Of these, 45,000 ‘A’ shares and 15,000 ‘B’ shares have been issued and fully paid up.

4.1.3. Debts to group companies

Debts to group companies

Amounts x €1,000

Debts to group companies
  Debts to group companies        
           
Balance as on 1-1-2016 21,361        
Result 3,877        
           
Balance as on 31-12-2016 25,238        

As was the case last year, no interest is charged on debts to group companies.

Personnel

As was the case in 2015, the company did not employ any staff in 2016.

Off-balance sheet information

Letters of liability in accordance with Article 403 of Book 2 of the Netherlands Civil Code have been issued and deposited for the participating interests in RAI Amsterdam B.V., RAI Solar Energy B.V. and Amsterdam RAI Catering B.V.

Amsterdam, 16 March 2017

The Executive Board of RAI Holding B.V.

P. (Paul) Riemens, CEO
M. (Maurits) van der Sluis, COO

Supervisory Board of RAI Holding B.V.

R.H. (Roelf) de Boer, chair
J.W.Th. (John) van der Steen, vice-chair
A.M.H. (Annemarie) van Gaal

Proposed appropriation of profit

Proposal for the appropriation of profit

Management proposes the General Meeting pay a dividend of €2,284 million over the year 2016. The result after tax over 2016 is included in the unappropriated profit item under shareholder equity.

Events after the balance sheet date

None.