2011 - Aena.es · PDF fileLogroo-Agoncillo San Sebastin Bilbao Asturias ... 2011) Spanish...

Annual report2011

Version 2

You can download the 2011 Aena Annual Report from the following website: www.aena.es

Please send us any questions, comments or suggestions regarding the contents of the 2011 Aena Annual Report through any of the following channels:

By post:Aeropuertos Españoles y Navegación Aérea (Aena)Dirección de Comunicación, 1ª plantac/ Arturo Soria, 10928043 Madrid

By e-mail:[email protected] telephone: By fax:(+34) 91 321 26 19 (+34) 91 321 15 78

Passengers in the Gran Canaria Airport

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Contents 1

2

3

4

Institutional Information ............................................................................. 4 . Figures .................................................................................................... 5 . Geographic presence ................................................................................ 6 . Trends in key indicators ............................................................................ 8 . Governing Bodies ................................................................................... 11 . Organizational Chart ............................................................................. 15

Air Navigation ............................................................................................. 17 . Development and evolution of air traffic ..................................................18 . International legal framework for air navigation ......................................21 . Key performance indicators .....................................................................30 . Main actions ...........................................................................................33 . Management excellence ..........................................................................43

Aena Aeropuertos ...................................................................................... 49. Airports ................................................................................................ 50. Infrastructures ....................................................................................... 65. Commercial services and property management .................................... 77. Aena Internacional ................................................................................ 89

Legal Information ....................................................................................... 99. Aena, public corporate entity

» Consolidated audit report ............................................................... 100» Consolidated management report .................................................. 106» Consolidated annual statements ..................................................... 138» Single financial statements ............................................................. 223

. Aena Aeropuertos S.A.» Consolidated audit report .............................................................. 233» Consolidated management report ................................................. 235» Consolidated annual statements ..................................................... 259» Individual financial statements ....................................................... 333

1 Institutional information

5

12011 Annual report

Figures

Institutional information

• Aena (Entidad Pública Empresarial) is the public Spanish company charged with providing air navigation services.

• Aena Aeropuertos was created in June 2011 to take on airport management competencies and to open the company to private capital investments.

• Aena is among the four main air navigation service providers in Europe, having controlled 1.89 million flights in 2011, and actively taken part in European Union projects related to the establishment of a Single European Sky

• Aena holds 100% of Aena Aeropuertos, the world’s foremost oper-ator in terms of passenger throughput, with 204 million passengers and 2.1 million operations in 2011.

• Aena Aeropuertos currently operates 47 airports and 2 heliports in Spain.

• Aena Aeropuertos facilities handled 670,000 tons of cargo in 2011.

• Aena Internacional is involved in the management of airport infra-structures in 29 airports located throughout Latin America (Mexico, Colombia, Cuba and Bolivia), the EU (UK and Sweden), Africa (An-gola) and the United States, which recorded about 50 million pas-sengers in 2011.

• The consolidated EBITDA in 2011 was 1.287 billion euros.

Figures

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1Institutional information

2011 Annual report

Geographic presence

Geographic presence

El Hierro

Seville

Badajoz

Burgos

Vitoria

La Gomera

Tenerife NorthLa Palma

Lanzarote

Gran Canaria

Málaga-Costa del SolAlmería

Salamanca

León

ValladolidZaragoza

Huesca-Pirineos

Pamplona

Logroño-Agoncillo

San SebastiánBilbao

Asturias

Santander

A Coruña

Santiago

Vigo

Albacete

Madrid-BarajasMadrid-Cuatro Vientos

Madrid-Torrejón

Alicante

Palma de Mallorca

Son Bonet

Menorca

Reus

Sabadell

Federico García LorcaGranada-Jaén

Melilla

Control Tower

Algeciras

Barcelona-El Prat

Murcia-San Javier

CeutaAirport

Heliport

Valencia

Girona-Costa Brava

Fuerteventura

Tenerife South

Jerez

Córdoba

Ibiza

Airports: 47. Heliports: 2 (Ceuta and Algeciras). En-route and approach control centers: 5 (Madrid, Barcelona, Seville, Palma de Mallorca and Canary Islands). Terminal area control centers: 2 (Santiago and Valencia). Control towers: Navegación Aerea provides air traffic service to 39 Aena Towers. Radio-aids: 184 (ILS/DME: 49, VOR/DME: 74, NBD: 61). Survei-llance systems: 53 (Primary Radars: 12, Secondary Radars: 29, Surface Radars: 7, Multilateration systems: 5). Communication centers: 103 (Aerodrome: 51, En-route and TMA: 52)

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2011 Annual report

Geographic presence

Aena Aeropuertos AirportsOperated by Aena AeropuertosAirports co-owned with TBIManagement and Consulting contracts

USA

Orlando-Sanford

Bolivia

La PazCochabamba

Santa Cruz

Mexico

TijuanaSan José del Cabo

Puerto VallartaLos Mochis

La PazHermosilloGuadalajara

BajíoAguascalientes

ManzanilloMexicaliMorelia

United Kingdom

Belfast InternationalCardiff

London-Luton

Management ContractsUSA

Atlanta Hartsfield-JacksonBurbankMacon

Raleigh-DurhamMiddle Georgia Regional

Colombia

BarranquillaCartagena de Indias

Cali

Spain

47 airports2 heliports

SwedenStockolm-Skavsta

Airport Operations Consulting contract

Angola

Luanda

Airport operation training and consulting

contract

Cuba (Ecasa)

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2011 Annual report

Evolution of key indicators

Trends in key indicators

150

175

200

225

2006 2007 2008 2009 2010 2011

PASSENGERS (in millions)

2.0

2.20

2.40

2.60

2,.80

3.00

2006 2007 2008 2009 2010 2011

OPERATIONS (in millions)

193

2.30

210

2.50

203

2.42187

2.16

192

2.12

204

2.10

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2011 Annual report

1.80

1.85

1.90

1.95

2.00

2.05

2.10

2006 2007 2008 2009 2010 2011

fLIGHTS OPERATED By AIR NAVIGATION (Millions of air movements)

1.92

2.09

2.06

1.881.89

1.95

2,500

2,700

2,900

3,100

3,300

3,500

2006 2007 2008 2009 2010 2011

CONSOLIDATED OPERATING REVENuE1

(MILLIONS Of EuROS)

2,780

3,141

3,241

3,095 3,094

3,500

2,500

2,700

2,900

3,100

3,300

3,500

2006 2007 2008 2009 2010 2011

CONSOLIDATED OPERATING ExPENSES2

(Millions of euros)

2,625

2,093

3,126

3,318

3,057

3,177

CARGO (Millions of tons)

500

550

600

650

700

2006 2007 2008 2009 2010 2011

614

642 643

569

659672

1 In 2008, new accounting rules began to be implemented introducing changes to the classification of costs and income in the Profit and Loss Statement.

2 Includes the negative balance under “Impairment and loss on disposal of fixed assets” and “Other results” of the Profit and Loss Statement.


2011 Annual report


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CONSOLIDATED EBITDA¹ (MILLIONS Of EuROS)

(Earnings before interests, taxes and depreciation)

500

700

900

1,100

1,300

2006 2007 2008 2009 2010 2011

796

931

814

574

904

1,287

1 In 2008, new accounting rules began to be implemented introducing changes in the classification of costs and income in the Profit and Loss Statement.


2011 Annual report


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2011 Annual report

Governing Bodies

Governing Bodies

AENA BOARD OF DIRECTORS(as of December 31st, 2011)

Ms. Monserrat Merino Pastor

Ms. Helena Royes Riera

SECRETARy

Mr. Jesús Fernández Rodríguez

CHAIRMANMr. Juan Ignacio Lema Devesa MEMBERS

Mr. Manuel Ameíjeiras Vales

Mr. José Luis Cachafeiro Vila

Mr. Mario Díaz Millán

Mr. Luis Espadas Moncalvillo

Mr. José Carlos Fernández Arahuetes

Mr. Ricardo García Herrera

Mr. Jesús Manuel Gómez García

Mr. Miguel Ángel Jiménez Martín

Mr. Manuel López del Saz

Ms. Mónica Melle Hernández

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2011 Annual report

Governing Bodies

AENA AEROPUERTOS S.A. BOARD OF DIRECTORS(as of December 31st, 2011)

CHAIRMANMr. Juan Ignacio Lema Devesa MEMBERS

Mr. Antonio Bernabé García

Mr. Juan Enrique Gradolph Cadierno

Ms. Marisol Turró Homedes

Ms. Maria Paz Espinosa Alejos

Mr. Miguel Aguiló Alonso

Ms. Ana Mª Fuertes Eugenio

Mr. Raimon Martínez Fraile

Mr. Ginés de Rus Mendoza

Mr. Jaime Terceiro Lomba

SECRETARy

Mr. Jesús Fernández Rodríguez

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2011 Annual report

Governing Bodies

AENA MANAGEMENT COMMITTEE (as of December 31st, 2011)

Mr. Juan Ignacio Lema Devesa Chairman – Managing Director

Mr. Reinaldo Rodríguez Illera Director of Air Navigation

Mr. Alfonso de Alfonso Bozzo Director of Audits and Internal Control

Mr. Miguel Ángel Ávila Suárez Director of Administration and Finance

Mr. Jesús Fernández RodríguezDirector of the General Technical Secretariat

Ms. Mª Jesús Luengo MartínDirector of Communications and Protocol

Mr. José Alfonso Solbes GalianaDirector of the Chairman’s Office

Mr. Ángel Luis Arias SerranoStrategy, Innovation and Sustainability Management

Ms. Carmen Librero was the Director of Air Navigation and a member of the Aena Management Committee until her resignation on July 21st, 2011.

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2011 Annual report

Governing Bodies

AENA AEROPUERTOS S.A. MANAGEMENT COMMITTEE (as of December 31st, 2011)

Mr. Juan Ignacio Lema DevesaChairman - Managing Director

Mr. Javier Marín San AndrésManaging Director, Aena Aeropuertos

Ms. Amparo Brea ÁlvarezDirector of Infrastructure Planning and Investments

Mr. Jesús Fernández RodríguezDirector of Legal Counsel and Property Management

Ms. Begoña Gosálvez Mayordomo Organizational and Human Resources Director

Mr. José Manuel Hesse MartínEnvironmental Director

Mr. Jesús Mendiluce Lacalle Director of Infrastructure

Mr. Ginés Ramírez LifanteDirector of Procurement

Mr. Antonio Villalón MirDirector of Resources and Quality Management Systems

Mr. José Vidal LijoDirector of Information Technology

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2011 Annual report

Organization Chart

Organizational Chart (through June 8th, 2011)

Spanish AirportsJavier Marín San Andrés

Air NavigationCarmen Librero Pintado

Audits and Internal ControlAlfonso de Alfonso Bozzo

CommunicationsMaría Jesús Luengo Martín

Administration and FinancesMiguel Ángel Ávila Suárez

ProcurementGinés Ramírez Lifante

InfrastructureJesús Mendiluce Lacalle

Office of the ChairmanJosé Alfonso Solbes Galiana

EnvironmentJosé Manuel Hesse Martín

Infrastructure PlanningAmparo Brea Álvarez

Organizational and Human Resources Director

Begoña Gosálvez Mayordomo

Planning and Management Control

Ángel Luis Arias Serrano

General Technical Secretariat

Jesús Fernández Rodríguez

Business Units

Corporate Units

Chairman and Managing Director

Juan Ignacio Lema Devesa

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2011 Annual report

Organization Chart

Chairman and Managing Director

Juan Ignacio Lema Devesa

Director of Administration and Finance

Miguel Ángel Ávila Suárez

Director of Communications and Protocol

Mª Jesús Luengo Martín

Director of Audits and Internal Control

Alfonso de Alfonso Bozzo

Director of the Chairman’s Office

José Alfonso Solbes Galiana

Director of Strategy, Innovation

and SustainabilityÁngel Luis Arias Serrano

Director of Air NavigationReinaldo Rodríguez Illera

Chairman’s OfficeAena Aeropuertos, S.A.

Director of ProcurementGinés Ramírez Lifante

Director of Legal Counsel and Property Management

Jesús Rodríguez Fernández

Director of Information Technology

José Vidal Lijo

Director of InfrastructureJesús Mendiluce Lacalle

Environmental DirectorJosé Manuel Hesse Martín

Director of Resources and Quality Management

SystemsAntonio Villalón Mir

Organizational and Human Resources Director

Begoña Gosálvez Mayordomo

Director of Infrastructure and Investment Planning

Amparo Brea Álvarez

Managing Director Aena Aeropuertos, S.A.Javier Marín San Andrés

Organizational Chart (as of December 31st, 2011)

Air Navigation2

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2 2011 Annual report

Air NavigationDevelopment and evolution of air traffic

Development and evolution of air traffic

The Directorate of Air Navigation’s mission is “to provide safe, quality, efficient and green air navigation services to fulfil the needs of custom-ers and of society, focusing on the development and satisfaction of our people and on the development of air transportation.”

The total volume of air traffic in Spain was still growing in 2011, achieving slightly better figures thanks to a small improvement in the Spanish GDP and despite the international financial crisis. Accordingly, the total activity amounted to 1,953,589 (total number of flights), a 3.34% increase from 2010.

Spain ranks fourth in Europe in air traffic numbers, with a 3.7% in-crease in the number of IFR movements, a little better than the average European country. The greatest increase in IFR traffic was in the Canary Islands, which grew by a remarkable 8.3% in 2011, compared to a 3.8% increase in the Spanish Peninsula FIR.

Control position

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2011 Annual report 2 Air Navigation

Monthly traffic was positive since the beginning of the winter cam-paign. Sharp increases in year-to-date figures in April and December were caused by the traffic volumes plummeting during those two months in 2010.

During 2011 the percentage increased in IFR traffic surpassed expec-tations due to foreign tourism, especially in terms of inbound and outbound flights. However, the increase was less pronounced in over-flights during the North African crisis because of the so called “Arab Spring”. In contrast, domestic flights followed a downward trend.

2011 - IfR TRAffIC COMPOSITION

Overflights 317,536

18 %

Domestic 479,976

27 %

In/ Out 977,095

55 %

100,000 -5 %

110,000

-4 %

120,000

130,000

140,000

150,000

160,000

170,000

180,000

190,000 13 %

12 %

11 %

10 %

9 %

8 %

7 %

6 %

5 %

4 %

3 %

2 %

1 %

0 %

-1 %

-2 %

-3 %

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

IFR 2011 IFR 2010 %11 vs. 10


IN 2011 the percentage increase in traffic surpassed expectations due to foreign tourism.

IfR TRAffIC VOLuME IN 2010 AND 2011

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The following chart shows the volume of operations in Spain in 2011 and year-to-date growth:

Volume of FIR air traffic in 2011 and 2010

2011 2010 % 2011 vs. 2010

FIR SPAIN 1,953,589 1,890,391 3.34%

FIR PENINSULA 1,827,515 1,766,746 3.44%

FIR/ACC CANARIES 312,426 290,258 7.64%


Air Navigation controlled 1,953,589 flights in 2011

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Air NavigationInternational legal framework

International legal framework for air navigation

New SES legal framework

In 2004, the European Union launched the Single European Sky initia-tive, or SES, designed to achieve an effective air transportation system based on the development and execution of common transportation policies, and taking a set of measures, namely, the harmonization and the improvement in the provision of air navigation services in Europe, reorganizing airspace according to air traffic, not to national borders, and reinforcing safety levels across Europe.

The rules and regulations of the Single European Sky are applicable to every European Union member State such that when the initiative is enacted, its stipulations will be automatically binding through the National Supervisory Authorities, which ensure the supervision and ap-plication of the legislation.

European Commission Building

22


The passing of Community Regulation (EC) No. 176/2011 sets the requirements regarding the preliminary information Member States must submit to the Commission, to the European Agency for Air Safety (EAAS), to other Member States, and to all interested parties, for the establishment and modification of a Functional Airspace Block.

EuROPEAN PERfORMANCE SySTEM

The evaluation system for air navigation services performance and net-work functions in key areas (safety, environment, capability and profit-ability) in air traffic in EU, AFI, ICAO regions, in which, according to Community Regulation (EC) No. 691/2010, Member States are respon-sible for the provision of air navigation services, was amended by the following regulations:

• Community Regulation (EC) No. 1216/2011: presents the Key Performance Indicators (KPI) for operational safety.

• Community Regulation (EC) No. 1034/2011 and (EC) No. 1035/2011: regarding the supervision of management air traffic safety and air traffic services, the passing of these regulations al-lowed for the introduction of new competencies for the European Aviation Safety Agency (EASA) without modifying the existing re-quirements applicable to air navigation service providers.

Aena, in its role as a provider of air navigation services, for the assess-ment of its performance, shall provide, among others, economic data, annual financial statements and the chapter of its annual company planning devoted to performance indicators.

In Spain, AESA (National Aviation Safety Agency) was appointed as the National Supervisory Authority for civil Air Navigation, being the com-petent body to audit, certify and supervise the Air Navigation service providers (AN) like Aena, the public entity in charge of civil air naviga-tion services in Spain.

The legal framework of the Single European Sky, initially made up of four community regulations published in 2004, is evolving constantly with new execution measures (Implementing Rules - IRs) and com-munity specifications arising from those regulations. As a result, the legal development during 2011 of the Single European Sky initiative produced a number of legal proposals, the most notable of which are listed below:

fuNCTIONAL AIRSPACE BLOCKS (fAB)

The consolidated process to establish the Functional Airspace Blocks (FAB) based on operational requirements, independent from national boundaries, as an essential measure to improve the efficiency of the European network, and to reduce the current fragmented provision of air traffic services sets December 4th, 2012, as the deadline for the completion of its set-up and, particularly, that of the SW FAB - South-West-FAB - developed between Spain and Portugal (Southwestern Eu-rope Functional Airspace Block).

Air NavigationExternal legal framework

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2NETWORK MANAGER

The volcanic crisis of April 2010 evidenced the need for a central entity capable of managing future crisis, with resources, experts and opera-tions under a Network Manager created under the provisions of the SES.

The passing of Community Regulation (EC) No. 677/2011 allowed for the following:

• Enforceable provisions on the functions of the air traffic network management (ATM) aimed to optimise the use of airspace in the Single European Sky, and to guarantee airspace users a choice among the preferred air paths while allowing them full access to the airspace and to air navigation services.

• The creation of the Network Manager, an independent and impar-tial entity to carry out European route network design functions, coordination of available resources, (i.e. Radio frequencies in aero-nautical frequence bands used by general air traffic and SSR trans-ponder codes) and the European traffic flow management (ATFM).

In order to fulfil his duties, the Network Manager is to develop, maintain, and implement the network’s strategic and operation plans. Likewise, the Network Manager is to create a Network Man-agement Board (NMB) to adopt measures intended to manage net-work functions and supervise their implementation.

Likewise, Aena shall comply with the performance objectives set in the National Performance Plans, the contents of which shall be a major influence in every area of activity of this Directorate.

AIR TRAffIC CONTROLLERS

Community Regulation (EC) No. 805/2011 is the highest ranking law regarding the issue of licences in the European Union. Its passing es-tablished the regulations for the issue, suspension and revocation of air traffic controller and air traffic controller student licences, authoriza-tions, notes and medical certificates, training organization certificates, and the conditions for their validity, renewal and use.

Air NavigationInternational Legal Framework

2011 Annual report

24

2011 Annual report 2that assigns airspace time (on a pre-tactical phase) based on user requests (ACC, FMP, management units for military zones and other certified agencies).

Additionally, the following EU Regulations came into effect during 2011:

• Community Regulation (EC) No. 283/2011 amended Regula-tion (EC) No 633/2007 laying down requirements for the applica-tion of a flight message transfer protocol used for the purpose of notification, coordination and transfer of flights between air traffic control units.

• Community Regulation (EC) No. 1206/2011 laying down re-quirements on aircraft identification for surveillance for the single European sky (ACID).

• Community Regulation (EC) No. 1207/2011 laying down re-quirements for the performance and the interoperability of surveil-lance for the single European sky (SPI).

• Community Specification ETSI-EN-303 214 on data link services (DLS, Data Link Services).

Aena, whose procedures will have to be significantly modified due to the establishment of this entity, shall:

• Make sure domestic and European network improvements are con-sistent with the contents of the network operations plan.

• Guarantee, as the air navigation service provider, that its operations plans match the network operation plan and its updates.

• Assess the impact, taking the necessary measures in this regard, of the exercise of the ATFM function by the Network Manager over the Airspace Management Cell (AMC Spain), a military and civil unit


Barcelona control center access

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2011 Annual report 2SES LEGISLATION fRAMEWORK STATuS

SES implementing rules

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2011 Annual report 2• Economic measures: Aimed to add aerodrome air traffic services

costs to those of the airport manager, and to reduce route tariffs down to the average of the five main European service providers by 2013.

• Reorganization of controllers’ working conditions: Ensuring the availability of required personnel to provide services under the new regulatory framework.

Evolution of Spain’s legal and policy framework

The entry into force of the EU’s legislation on the Single European Sky led to changes in domestic legislation, not only with the passing of new rules affecting air navigation, but also by amending existing rules. Over the course of 2010 Spain’s legal and policy framework was thor-oughly revised so as to align the domestic system with that developed in 2011.

GENERAL fRAMEWORK

Regulation of provision of air navigation services. The publication of Law 9/2010 of April 14th establishes a new general activity framework for air navigation in Spain via:

• Liberalisation measures: opening the entrance to new civil air traffic service providers for aerodromes, certified and nominated by competent authorities, together with the provision of apron serv-ices by non-controller personnel, and the implementation of flight information systems (AFIS) in aerodromes.

• Guarantee of safe, efficient, continuous, and economically sus-tainable provision of air traffic services by any ATS provider.


Control tower Vitoria airport

27

2011 Annual report 2fRAMEWORK Of AIR NAVIGATION HuMAN RESOuRCES

During 2011 the following regulations regarding Aena staff were passed:

• Resolution March 7th, 2011, of the Dirección General de Trabajo, recorded and published the arbiter’s ruling establishing the 2nd Air traffic controller collective bargaining agreement in the public cor-porate entity Aena.

• Royal Decree-Law 11/2011 of August, 26th establishes that the col-lective bargaining, recruitment and legal status of non air traffic controller staff in the public corporate entity Aena shall be that es-tablished for Aena Aeropuertos, S.A. personnel.

• Resolution of October 11th, 2011 of the National Aviation Safety Agency (AESA) provides that prior to January 15th, 2012, AESA shall require, ex officio, the licences, ratings and annotations of civil air traffic controllers to be exchanged as a result of Royal Decree 1516 / 2009 of October 2nd, which regulates the Community air traffic controller licence.

• Resolution of November 29th, 2011, of the General Directorate of Labour, which recorded and published the first collective bargain-ing agreement for the Aena group of companies ( Public Corporate Entity Aena and Aena Aeropuertos, SA).

INSTITuTIONAL fRAMEWORK

New management model for Aena

• Order FOM/1525/2011 of June 7th resolves the start of effective exercise of airport management functions and duties by Aena Aero-puertos, S.A., coming into effect on June 8th; from then on, the Public Business Entity Aena ceases to perform airport management activities.

• The Directorate of Air Navigation (DNA) is to cooperate and coor-dinate with Aena Aeropuertos, S.A. on every matter involving the management and exploitation of airport services under their respon-sibility, and any other vested upon the airport manager by domestic or international legislation regarding the airport and heliport network operated by Aena.

• Royal Decree-Law 11/2011 of August 26th, creating the Airport Economic Regulation Commission as a regulating body of the air transportation services industry as regards airport fees, aiming to maintain objectivity, nondiscrimination, efficiency and transparency of the system used to set and review airport fees.

• Royal Decree 30/2011 of January 14th, develops the basic organi-zational structure of the Ministry of Public Works. The Civil Aviation Directorate designs and manages aeronautical policies on civil avia-tion, within the competencies of the Central Government. Main implications for DNA: to comply with avation bulletins, take part in work groups, seminars, forums and activities organized by DGAC; provide aeronautical authorities with the required information or support.


28

2011 Annual report 2interest State-owned airports are not included and its provisions do not affect the Aena airport network. However, the Directorate of Air Navigation could be indirectly affected as the air navigation services provider (ATS and CNS) at airports owned by regional governments on the basis of the contractual relationships established with the manag-ers of these airfields.

fRAMEWORK fOR OPERATIONS AND SySTEMS

Royal Decree 1238/2011 of September 8th, which regulates airport apron management services and the conditions for their implementa-tion, in order to ensure the safe operation of aircraft in their move-ments in airport aprons, requires the DNA to publish the availability of said service prior to its implementation date in the Aeronautical Information Publication (AIP) of the Aeronautical Information Service (AIS).

ExCEPTIONAL SITuATIONS

The publication of Royal Decree 28/2011 of January 14th repealed Roy-al Decree 1611/2010 of December 3rd, which temporarily commended the Ministry of Defence with the exercise of the Public Corporate Entity Aena‘s air traffic control duties, thus giving every competency involv-ing air traffic control back to the company.

AERONAuTICAL INfRASTRuCTuRES

Royal Decree 1189/2011 of August 19th regulates the procedure for the issuance of compatibility reports and certificates (referred to in Law 21/2003 on Air Safety) prior to the establishment, modification and opening to traffic of airfields of regional competency, and prior to the adoption of plans for regional airport facilities.

The scope of application of the Royal Decree is restricted to public-use airports managed by regional governments, meaning that general


Federico García Lorca Granada-Jaén Airport Apron

29

2011 Annual report 2

In the context of SJU development activities, of note are the launch of the campaign to update the ATM Master Plan, the partnership be-tween Aena and Airbus within the SJU work program, and the man-agement of the airports work package (WP6), in coordination with Aena Aeropuertos S.A.

Development and deployment of the European air navigation system.One of the main European level programs Air Navigation is playing a remarkable role in is SESAR (SES ATM Research), a key community initiative to provide the air traffic management system with the tools required to handle traffic forecasts for the coming years, as scheduled in the ATM Master Plan.

Aena participates in the SESAR Joint Undertaking (SJU), formed by the main players in the European ATM system, to ensure the future of the system defined by the SESAR program. The SJU will coordinate and fund the research, development, and validation tasks contained in the ATM Master Plan, so between 2016 and 2020 and after the industriali-zation process, the operational solutions and their technical facilitators will be gradually phased in.

During 2011, technical and economic monitoring of Aena’s partici-pation in the development phase of the SESAR program was carried out. The validation activity planned for 2011 concluded on schedule and the objectives were achieved. It was the first validation exercise involving Aena within the SJU work program framework, and involved the introduction of P-RNAV in Madrid TMA and its participation in the design of the 2012 Plan, which includes the set of validation exercises in which Aena will take part in 2012.

Air NavigationKey performance indicators

The SESAR program will provide the air traffic management system with traffic forecast tools for years to come

30

2 Air Navigation

2011 Annual report

Key performance indicators

Key Performance Indicators

The year 2011 was marked by the vision of air navigation set by the Government, and the organization it aims to achieve in the medium term: “being leaders in the provision of safe and quality aviation serv-ices in a global and competitive environment, valued by customers and society. In particular, achieving excellence as an organization and hav-ing highly qualified, committed and satisfied people.”

Being aware as we are of the difficult global situation affecting cus-tomers, all our efforts are focused on strengthening the safety of serv-ices, improving their quality, and increasing economic efficiency.

Within the new legislative framework defined for 2010 and 2011, and after a long series of actions associated with these reforms, there has been a series of performance indicators, some of which are part of the 2012-2014 PNER (National Performance Assessment Plan) and com-pulsory as stated in Community Regulation (EC) No 691/2010.

All our efforts have focused on reinforcing the safety of services, improving their quality, and increasing

economic efficiency.

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2011 Annual report 2 Air NavigationKey performance indicators

AIR NAVIGATION SERVICES SECuRITy

Weighted Security Level: This measure integrates the monitoring of the evolution of type A and B ATM-caused incidents per 100,000 hours of controlled flight. Its value in 2011 remained below the goal level set.

Safety maturity index: this indicator monitors the implementation of safety management systems, based on the score obtained by the or-ganization in various working areas. In 2011, it reached 65.74 points, improving on 2010’s results (62.95) and surpassing 2011’s goal of 64 points.

The results in every European-wide performance area are as follows:

COST-EffICIENCy

Gate - to - Gate: ATM/CNS total cost per compounded hour 1 in 2011 was €492, 5% better than in 2010 and than the goal set in the 2011 Operations Plan.

Route: During 2011 ATM/CNS costs for route indicator was moni-tored, reaching a lower value of €59 (the goal for 2011 was €63).

PRODuCTIVITy

The value of global productivity achieved in 2011 outperformed the goal set and improved on the figure for 2010, as a result of the imple-mentation of the following measures:

• Substantial variation of working conditions. (Changes in schedules)

• Downsizing control rooms during night hours

• Optimization of supervisor allocation

• Optimization of on-the-job training processes

1 European level indicator comparing the financial efficiency of air navigation service providers considering both en route, approach and airport services (source ACE – ATM Cost-Efficiency Report).

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2011 Annual report 2 Air NavigationKey performance indicators

ENVIRONMENT

Main projects during 2011:

CDA: In order to implement operations allowing more efficient fly-ing profiles for aircraft, phase 2 was completed, adding continuous descent procedures at low/medium density traffic airports during its operation period. CO2 and noise pollution were reduced in overflown areas, thus complying with the target to reduce emissions of pollut-ants.

fuA: many initiatives to reorganize airspace were carried out by re-classifying airways (conditional use), establishing new and more direct routes, new input and output procedures at different airports, etcet-era. All these measures were designed to reduce the number of miles flown and to achieve a significant reduction in CO2 emissions.

Please note the fact that the implementation of the reduction of mini-mum radar separation in September 2011 helped decrease the number of incidents due to loss of lateral separation.

CAPACITy

En route delays: During 2011 its level fell 8% from 2010, due to a greater availability of sectors stemming from the implementation of measures listed in the productivity section. The capacity of certain sec-tors and their possible cluster values also increased.

Summer 2011: Despite the measures implemented to increase produc-tivity, the loss of workforce due to higher absenteeism and to provide child care did not reduce the delay rate to the established goal.

Load factor for ACC sectors: Optimization measures improved the values of the ACC load factor.

33


Air NavigationMain actions

Main actions

Economic resources

The strategy of improving our services with the ultimate goal of of-fering greater efficiency to customers is based on the development of various programs of action in areas related to these services. The influ-ence of the 2010-2013 Government Austerity Plan in the execution of these programs is reflected in the investment, incomes and expense budget incurred in 2011:

Investments: EUR 133.19 million

Incomes: EUR 1,253.69 million

Expenses: EUR 969.32 million

The main actions carried out by the Directorate of Air Navigation to improve our services and achieve the performance indicators proposed are as follows:

Organization and management of airspace service

This service consists of structuring, planning and managing the use of the airspace and understanding the rules and operating procedures so as to ensure access to air space depending on users’ requirements.

So as to attain the highest level of quality in the service provided, the year 2011 saw work continue to optimize the network of routes and ATC sectorization in an effort to improve the effectiveness and effi-ciency of the system.

34


tion applicable in Spain, Law 9/2010 and RDL 13/2010 determine the deregulation of air traffic control services at aerodromes within the road map established by the Single European Sky (SES). It is necessary to carry out an airspace restructuring program in order to facilitate the achievement of the objectives set out by this regulation and to allow progress in the evolution of NA as the air traffic services provider in this new environment, the goal being to remodel control towers to allow them to become more efficient and competitive. Most of the tasks

In 2011 we completed work to provide contingency instrument depar-tures in the Balearic and Canary Islands airports; some manoeuvres and procedures at various airports of the network were modified, and ac-tions aimed to improve cut-off levels among ACC Madrid sectors and to group ACC Barcelona sectors were carried out. Many projects that will be released during the first half of 2012, such as the deployment of airways of the East and Balearic TMA; a new instrument procedure design for inter-island traffic in the Balearic Islands; the new airspace design for the commissioning of the second runway of the Malaga-Costa del Sol Airport; the expansion of the Galicia TMA; and the im-plementation of contingency instrument departures for the airports of the Barcelona TMA, the Valencia TMA, the Seville TMA, and the Galicia TMA and for the Bilbao airport.

Studies were initiated to optimize the Valencia and the Canary Islands TMA sectors, to design and create new direct night routes and to in-troduce the FreeRoute as SW-FAB projects.

Efforts to introduce precision (PRNAV) Air Navigation in the TMAs and in associated departure and terminal arrival procedures (SIDs/STARs) continued, so that aircraft can fly any path without restrictions. To this end, in 2011 design work for the Madrid and Barcelona TMA contin-ued, and required activities for the implementation of P-RNAV GNSS-based manoeuvres were carried out.

CAELuS Program: within the framework of the new ANSP legisla-


TMA Barcelona radio navigation chart

35

2011 Annual report 2Capacity / demand management service

This service maximizes the relationship between system capacities and air traffic demand, maximizing the use of the available capacity (maxi-mum number of aircraft movements / operations entering a control area, overflying a certain point and taking off or landing at an airport or a group of airports per hour) to ensure an optimum flow of air traffic and comply with the objectives of maximum safety, without dis-rupting the operation, the economy or the environment under normal conditions.

During 2011, the Directorate of Air Navigation continued working on a modular zoning easily adaptable in real time, in order to improve the capacity offered to traffic flows. This modular partition is being devel-oped within the scope of the iTEC-FDP project, which sets predefined functional volumes (FV) that should allow for defining ACC sectors (grouping, combining or subdividing) to deal with different situations and workloads.

Determining the capacity is essential for the optimization of the Air Navigation system; in this regard, the development and evolution of multiple internal CNS/ATM analysis tools required by the service con-tinued in 2011.

planned for 2011 had to be rescheduled since the necessary studies to design the route airspace and TMA will not be completed until March 2012.

Air Navigation continues to pursue the strategy of commitment to-ward the environment through different projects to minimize the im-pact of its services. Starting with Asturias and Santander, whic were the first to use daytime green landings, in 2011 the second phase to implement operations with Continuous Descent Approach (CDA) ended. The continuous descent procedures allow more efficient air-craft flights according to profiles, and thus reduce pollution from CO2 and noise emissions. In addition, civil/military coordination, within the project FUA (Flexible Use of Airspace), for the joint use of airspace continued, in order to introduce procedures to allow real-time shared airspace management. Phase 2 was completed in 2011: the re-sizing of southern military zones, the commissioning of new SID and STAR procedures in the Seville, Jerez and Almeria airports, and the creation of new airways and the authorization for the conditional use of others.

All these actions demanded an extraordinary workload, necessary to carry out the numerous previous studies, the development of differ-ent analysis tools, and the final operational validation of every project related to airspace management.


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2011 Annual report 2Air Traffic Service

With this service, Air Navigation orders and sequences air traffic by providing the necessary separation between aircraft and between these and all obstacles. Air Navigation provides useful advice and information for in-flight aircraft operations. It also notifies and assists relevant agencies regarding aircraft in need of help and rescue.

The technological development and automation of the Air Naviga-tion system led to the creation of the Automated Air Traffic Control System (SACTA). Its evolution continued during 2011, when the two major milestones were the commissioning of the Short-Term Conflict Alert (STCA) implemented in all TMAs and the DMAN functional-ity validation (management of delayed departures) of SACTA version 3.Z5.10, now available for use in the Barcelona and Madrid-Barajas TWRs.

By March, all ACCs had transitioned to SACTA version 3.Z5.17, which features the latest in dynamic simulation.

During 2011 the new values for Minimum Separation Radar Distance (MSR): 5NM en route and 3 NM in TMA were published in the AIP and placed in service (September 22nd, 2011).

• PICAP and PICAP+: (Runway Capacity Research Program) Tool and Methodology to calculate runway capacity.

• NORVASE / MECANO: Tool, methodology and standards for sector validation and Associated Capacity Calculation Method (MECANO).

• GENES: Manager of New Sector Structures. Sector design tool and methodology based on genetic algorithms.

• MICA: Integrated Capacity Model from the point of view of ATC activity.

• MENTOR: Demand vs. SNA capacity analysis.

• PERSEO: Project implementation for the calculation of ACC opera-tional needs based on demand.

• ATON: development of a voice-recognition tool for automating NORVASE landings.


Interior of control center in Torrejón

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2011 Annual report 2New towers in Fuerteventura (02/18/11), Santiago (09/20/11) and Tenerife North (11/23/11) entered service in 2011.

The close partnership between the Directorate of Air Navigation and the Directorate of Spanish Airports has produced a program that seeks to integrate the airport and ATM networks, thus maximizing the exist-ing infrastructures. To this end, they have taken part in several projects: the A-CDM (Advanced Collaborative Decision Making) project which included the signing in 2011 of the MoU (Memorandum of Under-standing) of Madrid-Barajas Airport and the parties involved in the par-ticipation of Eurocontrol and the DMAN (Departure Manager) project, aiming to enhance take-off sequences so as to maximize runway per-formance and minimize delays.

Air Navigation Information Service (AIS)

The Air Navigation service, provided by the Directorate of Air Naviga-tion, ensures the process, management and user access to all relevant updated and validated aeronautical information needed for its opera-tion. The AIS provides the aeronautical information necessary to per-form all air operations safely, regularly and efficiently. All that informa-tion is published and distributed from central Air Navigation services.


Fuerteventura control tower

In 2011 new control towers were opened in Fuerteventura, Santiago and Tenerife North

38


Finally, in the area of aeronautical information publications, continu-ously updated information was provided with the publication of new instrumental procedures due to the radio navigation aid service cancel-lations and contingency departures in some airports, and new chart calculation programs.

During 2011, further progress was made in the transition towards an aeronautical information service model based on digital information services, and in the adaptation of processes to new domestic and SES regulations.

Among the various projects under way, worthy of mention is the NO-TAM digital project (evolution of the current NOTAM system in Eu-rope). In 2011 the new EURONOTAM tool was tested by successfully connecting it directly to Aena’s system, Icarus XXI. The service was declared operational prior to the publication of the new GPS-EGNOS NOTAM manoeuvres in Spain, scheduled for mid-2012.

Another Air Navigation system constantly evolving is Icarus (Integrated AIS/COM/AIP & Reporting Office Automated System), which provides different services to the aeronautical user: management of aeronauti-cal information, NOTAM, preflight information bulletins, weather in-formation and the submission of flight plan messages. Over the course of 2011, Icarus was installed as part of the working tools at the AFIS airports in La Gomera, El Hierro, Burgos and Huesca-Pirineos.

In keeping with the effort to develop Air Navigation systems, we ex-panded the capabilities of the INSIGNIA system (geographic informa-tion for the aeronautical information system), a system for the produc-tion of Visual charts. In addition, the process of entering and updating data is already fully implemented as evidenced by the generation of of AIP VAC charts from the AIRAC AMDT database of 06/11 July. Also prepared was the system and procedures for loading data from SID and STAR procedures and for loading airfield data, which is already completed for the airports of Valencia and Huesca-Pirineos.

Main actions

AIP Cover

39


over IP). During 2011 and together with this future development, version 1.10.3.22 of SCV IPin Madrid (09/11/2011) and Barcelona (02/12/2011), were updated and standardized. The lvoice recording and playing system in the ACC-TMA/Madrid was refurbished and new SCV and digital recording systems were installed in the new control towers of Fuerteventura, Santiago and Tenerife North.

CNS Service (Communications, Navigation and Surveillance)

This service guarantees the availability, operation and maintenance of the technical resources and facilities required for the Air Navigation system supporting aircraft operations.

COMMuNICATIONS

Aeronautical communications represents a core value underpinning air traffic service. In the Air-Land (T/A) version, which services pilot-controller communications, the strategic project is reducing the band-width of pilot-land voice communications from 25 to 8.33 kHz to increase the number of potential radio frequencies. Although there is no shortage in Spain, the critical situation in other EU countries has propelled a mandatory solution over FL195. The measure has proved successful, and will soon cover all flight levels after the amendment of current regulations, which will require certain preliminaries from every interested party. During 2011, new T/A communications equipment went into service at the Fuerteventura, Santiago and Tenerife North airports, at the main receiving center of the Malaga-Costa del Sol airport, for new route frequencies and ACC-Brest in the Asturias TWR and at the Burgos and Huesca-Pirineos AFIS airports.

The Voice Communications System, closely related to air traffic serv-ice (SCV), is in the process of being updated and adapted to interna-tional standards so that it can work with IP and VoIP protocols (Voice

Radio navigation charts


40


Air Navigation

Air Navigation has its own communications network for Land-Land to enable data exchange among different systems, at a domestic and international level among different ANSPs (Air Navigation Serv-ice Provider). During 2011, Air Navigation extended the presence of its network in its new facilities, with the entry into service of new operational nodes in the new control towers of Fuerteventura, San-tiago and Tenerife North. Simultaneously, several Land-Land com-munications links were deployed: in 2011, the radiolink between Taborno and the Tenerife North tower entered service and the instal-lation of fibre optic rings in Fuerteventura, Santiago, Tenerife North and Málaga was completed.

Also worth noting is the implementation of round-the-clock opera-tions for the EURONOTAM aviation messaging tool.

NAVIGATION

Air Navigation is deploying radio navigation aids (to enhance aircraft guidance) in line with the introduction of new technologies and navi-gation applications, intended to improve service levels while reduc-ing equipment and maintenance costs as much as possible. To this end, in 2011 seven NDB (Non-Directional Beacon) were removed and several VOR/DME (VHF Omnidirectional Range/Distance Measurement Equipment) were either upgraded or replaced. Moreover, the ILS/DME (Instrumental Landing System) at Murcia-San Javier (runway 23) and Malaga-Costa del Sol (runways 13 and 31) were also replaced, and new ILS/DME were installed in Malaga-Costa del Sol (runway 12) and Logroño (runway 29). Two GP/DME were also moved in order to com-ply with the requirements of Annex 14, and the Tenerife North (run-way 12) and Alicante (runway 10) were modified. Communications station

Main actions

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2011 Annual report 2In parallel, during 2011 the new control towers were supplied with control and monitoring equipment and the SIRA system and EC Safety and Verification studies on radar and radio navigation aids were car-ried out.

Regarding satellite navigation, during 2011 several activities were carried out intended to enable the entry into service of performance-based flight procedures that allow aircraft operations in instrument flight conditions using only onboard equipment, and which in the near future will enable the design and entry in service of new procedures independent of the existence of radio navigation aids.

The future satellite navigation system, EGNOS, was tested in flight in dif-ferent airports. Thanks to this system, the pilot will be able to perform in-strument approaches at any airport without the need for land-based radio navigation aids, a breakthrough in safety and operability.

SuRVEILLANCE

Surveillance systems for Air Navigation, necessary to ensure the safety of air traffic by identifying and tracking all aircraft flight paths, has expanded and improved in its radar coverage. In particular, six Mode-S MSSR units are being updated and a new Mode-S radar is being dde-livered. A new approach radar (primary and secondary) at the Gran Canaria airport entered service in November.

Aligned with efforts to evolve airport surface surveillance, Air Naviga-tion completed the installation of surface radars (SMR) in Asturias, Bar-celona and Santiago de Compostela. At the same time, the installation DVOR. Doppler VHF Omnidirectional Range


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2011 Annual report 2of an SMR at the Bilbao airport and Mode-S (SMMS) multilateration systems in Barcelona-El Prat and Málaga-Costa del Sol is still under way.

The Directorate of Air Navigation is engaged in advanced aeronautical systems research, featuring in 2011 the implementation of SACCAN phase 3, implemented by ADS-C (Automatic Dependant Surveillance – Contract) and CPDLC (Controller Pilot Data Link Communication) in the Canary Islands FIR. This included tests performed on the new SAC-CAN v2 system. Also of note is the completion of the OPTIMI project, which uses ADS-C to analyse aircraft tracking improvements in ocean areas

TECHNICAL OPERATIONS

Among the different tasks carried out throughout 2011 intended to improve and update Air Navigation infrastructures, the most sig-nificant are the completion of the expansion of the secondary radar equipment room in Taborno (Tenerife) and the improvement of NA electrical installation in category II and III airports.

Likewise, the NOF was moved to the central systems building of the Madrid AAC, and work on the new logistic support center building in Paracuellos del Jarama was completed, although the items corre-sponding to the connection and access to the public sewerage system are still outstanding.

In 2011, technical operations required a considerable effort in terms of the documentation generated. This was because of the creation of

Aena Aeropuertos S.A. and the need to reach agreements between Aena and Aena Aeropuertos S.A. to provide services, co-ordination, maintenance, etc.

As the entire Air Navigation is included in the CNS/ATM systems area of activity, here are the main generic activities executed during 2011:

• Central logistic support to SNA facilities.

• NA system maintenance by Regional Units, as per established methods and procedures.

• Operation and maintenance of Air Navigation Systems (REDAN, CRAMI, VOLMET, ICARO XXI, RECON, COS, SACTA, etc.), some of which are centralized.

Besides, special mention must be made of the compliance of inflight calibration planning of Air Navigation facilities during 2011, thanks to the combined use of Calibration Units of the CECAG, Spanish Air Force, the Aena Internacional’s Inflight Verification Unit and the CFI (Cobham Flight Inspection) External Unit through current contracts with those companies. Also worth noting is the fact that Aena Interna-cional’s Inflight Verification Unit 750-flight-hour commitment reached 800.67 hours. Finally we notethe high levels of availability and conti-nuity of Air Navigation services achieved in the operation of the CNS/ATM system, with both systems attaining rates of 99% in 2011.


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2 Air Navigation

2011 Annual report

Management excellence


One of the Directorate of Air Navigation commitments is achieving management excellence, that is to say, applying a set of outstand-ing practices in the management of the organization.

A great number of activities were carried out in an effort to achieve management excellence:

OPERATIONAL SAfETy

Safety is the raison d’être of the services provided by Air Naviga-tion, an essential component of every project of the DNA and a strategic line on its own. To achieve one of Air Navigation’s key goals while keeping the highest safety levels in DNA services, three safety indicators intended to measure its compliance were established in 2011

To develop these goals a five-year plan was devised for each goal:

• Regarding the safety maturity Indicator, a Maturity Indicator Ac-tion Plan was developed with activities and designated manag-ers, the objective being to raise both the score and the maturity level.

• Regarding the action plan to decrease the weighted safety level (NPS), the main contributions to the overall NPS and possible ways for reducing them were analysed:

» Main contributions to the NPS were violation of minimum sepa-ration between control centers and LEMD. LECM is the priority, followed by LECB and LEMD, and finally, LECL, LECS, GCCC and LECP.

» Actions to be carried out for the implementation of Safety Nets are underway, like control staff training in the most critical sec-tors in procedures to avoid or mitigate the main factors detected in incidents, EMA operator coordination to reduce aircraft non-compliances and evaluation of certain procedures to see if they can be implemented in aircraft.

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2011 Annual report 2 Air NavigationManagement excellence

PHySICAL SECuRITy

Within the scope of Air Navigation Physical Security management, there was non-stop work to complete the implementation of physical security (PS) programs in the Directorate of Navigation Services facili-ties, carrying out a global and detailed diagnosis of the real and objec-tive situation of the physical security of every facility or unit providing AN services. An essential part of this diagnosis is assessing risk levels based on the criticality and vulnerability of the facility.

QuALITy

As part of its commitment towards constant improvement in service quality, the Directorate of Air Navigation maintained its UNE - EN - ISO 9001: 2008 quality management system (QMS) certification following the AENOR regular audit conducted between April 25 and May 13, 2011.

The integration of the Directorate of Air Navigation’s Quality, Envi-ronmental, Physical Security and Operational Safety systems into its Integrated Management System has enabled Aena to maintain the SGI-008/2010 Integrated Management System Certificate (Quality and Environment). As part of the GIS optimization, a study guide for the

RISK LEVEL PERCENTAGES

fACILITIES WITH A PS PLAN

Acceptable risk level93.38 %

Unacceptable risk level0.00 %

Satisfactory risk level6.62 %

No. facilities with a PS plan No. facilities in service on31/12/2011

0

30

60

90

120

150

BALEARIC IS. CANARY IS. CENTER-NORTH EAST SOUTH

45


• The new customer care procedure adapted to Aena’s electronic management was successfully implemented in coordination with the Corporate Directorate and integrated in the Navigation Services external Communication process.

ENVIRONMENT

We have continued our efforts to reduce electricity usage in our facili-ties, and replaced equipment containing regulated gases that deplete the ozone layer, this proving Aena’s strong commitment and respon-sibility toward environmental issues. During 2011, the Directorate of Navigation Services maintained its UNE-EN-ISO 14001:2004 Environ-mental Management System (EMS) certification.

Two key projects are worth mentioning in terms of reducing the envi-ronmental impact of services:

• Phase 2 of the CDA project, consisting of the implementation of operations allowing a more efficient flying profile for aircraft, was completed by adding continuous descent procedures in the low/med density traffic airports during their periods of operation.

• At the same time CO2 and noise pollution were reduced in over-flown areas, thus complying with the objective of reducing emis-sions of pollutants.

Within the scope of the 2010-2011 Quality and Environment Aware-ness Plan, training on the environmental control procedures of suppli-ers and contractors was developed and provided, specific environmen-

optimization processes was developed in 2011 to establish the meth-odology to use.

A fundamental aspect of the improvements made to the quality man-agement system is client communication (questions, suggestions, complaints), which affords us an enhanced awareness of their opin-ions, and which Air Navigation maintains through different channels: client forums, the OVACNA (Air Navigation Virtual Customer Service Office), internal committees and the electronic headquarters, available on the Web.

• The official forum for airspace users hosted by the Navigation Serv-ices Customer Forum will take place on February 29th, 2012.

• The 2011 Perceived Quality Survey was conducted using Air Naviga-tion’s own resources.

Air Navigation has a commitment with society: to be environmentlly friendly. To achieve this, we have

continued to reduce electricity usage in our facilities and have replacemed equipment containing regulated gases

that deplete the ozone layer.

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• Development of new applications, such as the following:

» Surveys demanded by different Air Navigation units, ABACOST (Cost-benefit analysis), File_PC (Registration management), CAPREX (Catalog of Suppliers and Files PAPEX), PACES man-agement, Orders and Files, ALMADEX (ACC Norte Center stock management application analysis), SILNA (Stock control CAL of SNA).

ICT infrastructures and security

• Security and intrusion project audit.

• Improvement in storage infrastructure safety, performance, and backup, thanks to the implementation of several projects.

• New CPD in the Central Services building in the Torrejón ACC.

Communications

• Relocation of the Fuerteventura tower.

• MacroLAN installation in CAL.

• Migration of telephone access to Vodafone, awarded as part of the corporate communications bid.

• Network security improvement through several projects (firewalls, bridges, network segmentation, 802.1x).

• Implementation of the NNMi management tool to monitor the en-tire Air Navigation communications network.

• Installation of the telephone system and corporate network equip-ment at the new headquarters in Ciudad Pegaso, reorganization of all related communications links.

tal training was given to technical operating staff and, finally, a video was produced to familiarize the staff with AN’s Management System.

INfORMATION SySTEMS:

Every ICT action was intended to maintain and improve the services provided by the Directorate of Air Navigation.

Services planning and coordination

• Consolidation of the Information Systems services of the South DN-RNA in AN SSCC.

• Printing resources optimization project through the SAFECOM system.

• Transfer of Information System user services to the new Pegaso City building.

• Implementation of new HP-UX servers and start of UNIX services migration, such as GESTAR, ABACOST, GESTLIN, etc., to the new platform.

• Implementation and start-up of SCOM back office services monitor-ing system.

• Migration of Internav to a SharePoint Portal Server technology en-vironment.

• Participation in performance and improvement studies involving various applications under development, such as GESIS, SATMA, ETNA, and GESTUR 2005.

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European regulations require Member States to establish, prior to 2012, functional airspace blocks (FABs) based on operational require-ments and independent of national borders. The process of organizing the SW (South-West) FAB evolved reasonably well in 2011, consider-ing the institutional situation in Portugal during this period. Late in the year the roadmap for the SW FAB operational projects that will be implemented from 2012 to 2020 was also defined.

Other forums in which the Directorate of Navigation Services actively cooperates and enhances its standing by engaging in increasingly co-ordinated actions at an international level are the following:

CANSO (World Organization of Civil Air Navigation Service Providers) and ICAO (International Civil Aviation Organization): within the scope of CANSO GLOBAL the development of the global strategy of CANSO and the establishment of the CANSO Office in Latin America were suc-cessfully completed. In CANSO Europe Aena actively participated in the position paper for the deployment of SESAR, with the election of Aena as a CANSO representative in the EC’s Group of Experts, tasked with developing a proposal.

On June 22nd, members of the A6 (a group consisting of AN European Service providers taking part in the SESAR program, and SJU members: Aena, NATS, ENAV, DSNA, DFS and NORACON) signed a Memoran-dum of Cooperation to strengthen participation in SESAR. AENA leads the A6 SJU activities group.

AEFMP (group formed by air navigation service providers from Algeria, Spain, France, Morocco and Portugal) carried out the activities stipulated in the harmonization plan by approving the 2011 work plan and agree-

AfIS

In 2011 the airports of Burgos (February 10) and Huesca (December 15) were designated as airfield flight information service (AFIS) air-ports. There facilities, where Aena used to provide an Aerodrome Con-trol Service (ATC-Aerodrome), now feature an AFIS service, provided by an air navigation service provider different from Aena.

CERTIfICATION

On July 7th, 2011, AESA certified Aena as an air traffic controller train-ing organization, including ongoing and unit training and instructor training.

During the year, the 2011 AESA 2011 supervision plan was undertaken for the purpose of maintaining Aena’s certification as an air navigation services provider and as an air traffic controller training organization.

During 2011, the preliminary analysis for certification as a provider of air navigation services started on an internal basis, in preparation for gathering the documentation needed to renew the certificate in 2012.

INTERNATIONAL PARTICIPATION

Due to cross-border air navigation, which extends beyond Europe, it is part of the strategy of the Directorate of Air Navigation to establish agreements and partnerships with other service providers in order to improve performance.

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numerous actions intended to comply with the commitments under-taken with our clients and with society that involved our active par-ticipation in European co-operation projects, domestic civil/military co-operation projects like FUA (Flexible Use of AirSpace) and in projects of the Directorate of Air Navigation, like the promotion of economic efficiency. This adaptation will continue throughout 2012 because of its extraordinary importance and magnitude.

ing on technical inter-operability (COM IP and TDM networks, ATM/CNS system certifications) and operational (FPL migration) initiatives, and by participating in the EUROMED II Project.

Throughout the year, both domestic and European regulators enacted numerous regulations and standards that required a major restructur-ing in all areas of Navigation Services in order to adapt to them and, consequently, to improve performance. Throughout 2011, there were

3 Aena Aeropuertos

50

Airports

In 2011, Aena airports recorded more than 204.3 million passengers (6% more than in 2010), operated over 2.1 million flights (+1%), and transported more than 672,000* tons of cargo (+3 %).

These figures reflect growth in the number of passengers, operations, and cargo. Therefore, every indicator shows a marked improvement in air transportation in 2011.

PASSENGERS

A total of 204,386,371 passengers used the network’s facilities during 2011, a 6% upturn compared to 2010. Of the total number of passengers, 203,305,122 made commercial flights (+6.1%). Of these, 127,082,235 made international flights (+10.5%) and 76,222,887 made domestic flights (-0.6%).

Madrid-Barajas Airport

*Other traffic or transit types not included

The birth of Aena Aeropuertos in June 2011 came in response to relevant changes in Aena’s management model. The new company is to take on all airport management competencies and is poised to open the company to private capital investments. The company undertakes operations with a great deal of market expertise under its belt as the world’s foremost operator in terms of passenger throughput, with over 200 million passengers and a network of 47 airports and 2 heliports in Spain, while participating directly or indirectly in the management of another 29 airports around the world.

3Aena Aeropuertos

2011 Annual report

Airports

51

The busiest airport in terms of passenger traf-fic was Madrid-Barajas with 49,671,270 pas-sengers, which represents a 0.4% decrease with respect to 2010, followed by Barcelona-El Prat, 34,398,226 passengers (+17.8%), Palma de Mallorca, 22,726,707 (+7.6%), Malaga-Costa del Sol, 12,823,117 (+6.3%), Gran Canaria, 10,538,829 (+11.1%) and Ali-cante, 9,913,731 (+5.7%).

The highest percentage increases were at the Algeciras and Ceuta heliports, with growths of 130.2% and 56.8% respectively, and the airports of Zaragoza (+24.0%), Santander (+21.4%), Fuerteventura (+18.6%), Val-ladolid (+17.8%), Seville (+17.4%), San-tiago (+13.4%), Lanzarote (+12.3%), Ibiza (+12.0%) and La Palma (+7.6%).

During 2011, international air passenger traf-fic increased 10.5% in the entire network.

The busiest airport in terms of passenger traffic is Madrid-Barajas,

with 49,671,270 passengers

Interior of the new terminal in the Santiago Airport

3Aena Aeropuertos

2011 Annual report

Airports

52

The most notable increases were Fuerteventura (+26.1%), Seville (+24.8%), Barcelona-El Prat (+23.5%), Tenerife South (+22.5%), Valen-cia (+18.3%), Zaragoza (+17.6%), Lanzarote (+17.2%), Gran Canaria (+17.0%), Ibiza (+13.7%) and La Coruña (+12.7%).

Since January 2011, a recovery in monthly passenger traffic has been recorded in different airports like Barcelona-El Prat, Gran Canaria, Tenerife South, Alicante, Malaga-Costa del Sol, Palma de Mallorca, Fuerteventura, Lanzarote, Ibiza, Seville and Santiago. This growth pattern was mirrored in other airports later in the year.

AIRCRAfT

In 2011, a total of 2,140,308 flights operated out of Aena airports, a 1% increase from the number of movements in 2010. Of these, 1,871,609 were commercial flights (+2.6%), 898,299 were domestic (-2.5%) and 973,310 international (+7.8%). Regarding the type of flight, 1,666,656 were scheduled (+3.1%) and 177,429 were charter (-0.6%).

Madrid-Barajas Airport still has the most traffic in the network with 429,390 flights (-1%), followed by Barcelona-El Prat, 303,054 op-erations (+9.1%), Palma de Mallorca,180,152 (+3.2%), Gran Cana ria, 111,271 flights (+7.9%), Málaga-Costa del Sol, 107,397 (+1.7%), Alicante, 75,576 (+1.5%), Valencia, 70,397 (-9.5%), Tenerife North, 62,604 (+1.6%) and Ibiza, 61,768 (+8.4%).

In 2011, Aena airports operated 2,140,308 flights

Airplane on the tarmac at the Burgos Airport

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Of all the airports with the highest percentage growth in opera-tions, the case of the Algeciras Heliport is the most significant, with an increase of 96.7% (2,636 operations), followed by Jerez, +24.9% (41,713), Fuerteventura, +13.0% (44,549), Ibiza, +8.4% (61,768) and Lanzarote, +6.4% (49,675).

As for the number of international operations, the highest rates of growth were recorded in Fuerteventura (+26.3%), Vitoria (+24.2%), Tenerife South (+20.5%), Ibiza (+17.9%), Seville (+13.2%) and Valen-cia (+11.2%), mostly involving European destinations.

CARGO

The volume of goods transported in 2011 was 672,146,043* kilo-grams, 3% more than the previous year, of which 525,202,037 kilo-grams was international cargo (+4.9%) and 146,944,006 kilograms domestic cargo (-3.3%).

By airports, Madrid-Barajas holds the first place, 394,154,078 kg (+5.4%), followed by Barcelona-El Prat, 96,572,859 kg (-7.4%), Zarago-za, 48,647,400 (+14.3%), Vitoria, 34,692,256 (+24.1%) and Gran Canaria, 23,678,510 (-3.5%).

Most of the cargo transported in 2011 passed through the airports of Madrid-Barajas, Barcelona, Zaragoza,

Vitoria and Gran Canaria.

*Other traffic or transit types not included

Zaragoza Airport

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TOTAL PASSENGER TRAffIC IN 2011

AIRPORT PASSENGERS AIRPORT PASSENGERS

Madrid-Barajas 49,671,270 Fgl Granada-Jaén 872,752

Barcelona-El Prat 34,398,226 Almería 780,853

Palma De Mallorca 22,726,707 Zaragoza 751,097

Malaga-Costa Del Sol 12,823,117 Valladolid 462,504

Gran Canaria 10,538,829 Melilla 286,701

Alicante 9,913,731 San Sebastián 248,050

Tenerife South 8,656,487 Pamplona 238,511

Ibiza 5,643,180 El Hierro 170,225

Lanzarote 5,543,744 León 85,725

Valencia 4,979,511 Badajoz 56,981

Seville 4,959,359 Ceuta /Heliport 46,754

Fuerteventura 4,948,018 Salamanca 37,257

Tenerife North 4,095,103 Burgos 35,447

Bilbao 4,046,172 La Gomera 32,713

Girona-Costa Brava 3,007,977 Vitoria 28,211

Menorca 2,576,200 Madrid-Torrejón 27,801

Santiago 2,464,330 Algeciras /Heliport 25,318

Reus 1,362,683 Logroño-Agoncillo 17,877

Asturias 1,339,010 Córdoba 8,442

Murcia-San Javier 1,262,597 Albacete 8,415

Santander 1,116,398 Huesca-Pirineos 2,781

La Palma 1,067,431 Madrid-Cuatro Vientos 431

Jerez 1,032,493 Sabadell 0

A Coruña 1,012,800 Son Bonet 0

Vigo 976,152 Total 204,386,371

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La Coruña

Jerez

La Palma

Santander

Murcia-San Javier

Asturias

Reus

Santiago

Menorca

Girona-Costa Brava

Bilbao

Tenerife North

Fuerteventura

Seville

Valencia

Lanzarote

Ibiza

Tenerife South

Alicante

Gran Canaria

Malaga-Costa Del Sol

Palma De Mallorca

Barcelona-El Prat

Madrid-Barajas

0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000

AIRPORTS WITH THE MOST PASSENGER TRAffIC IN 2011 TRAffIC * IN SPANISH AIRPORTS IN 2011

2011 % Chg 2011/2010 % Traffic

AIRCRAfT

National 898,299 -2.5% 42%

International 973,310 7.8% 45%

Other Types 268,699 -9.0% 13%

TOTAL 2,140,308 1.0% 100%

PASSENGERS

National 76,222,887 -0.6% 37%

International 127,082,235 10.5% 62%

Other Types 322,161 -7.4% 0%

Transits 759,088 1.7% 0%

TOTAL 204,386,371 6.0% 100%

CARGO IN KILOGRAMS

National 146,944,006 -3.3% 21%

International 525,202,037 4.9% 77%

Other Types 265,371 -56.5% 0%

Transits 13,153,131 108.2% 2%

TOTAL 685,564,545 4.0% 100%

TRAffIC uNITS**

National 77,692,327 -0.6% 37%

International 132,334,255 10.2% 63%

Other Types 324,815 -8.2% 0%

Transits 890,619 10.0% 0%

TOTAL 211,242,016 5.9% 100%

* Total figures including transits and other traffic types.** A traffic unit is equivalent to a passenger and his baggage or 100 kg cargo.* Airports handling more than one million passengers

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TREND IN TOTAL PASSENGER TRAffIC

year Total no. of passengers year Total no. of passengers

2001 144,600,598 2007 210,498,760

2002 143,092,601 2008 203,862,028

2003 153,826,341 2009 187,631,102

2004 166,146,198 2010 192,792,606

2005 181,277,741 2011 204,386,371

2006 193,553,178

TREND IN PASSENGER TRAffIC 2001-2011 (in millions)

210

170

190

150

130

110

90

2001

144.6

2002

143

2003

153.8

2004

166.1

2005

181.2

2006

193.5

2007

210.5

2008

203.8

2009

187.6

2010

192.8

2011

204.3

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PASSENGERS* By TRAffIC TyPE

2011 % Chg 2011/2010 % Traffic

SCHEDuLED

Domestic 74,943,463 0.1% 41%

International 109,951,814 11.0% 59%

TOTAL 184,895,277 6.3% 100%

CHARTER

National 1,275,403 -28.7% 7%

International 17,124,295 7.0% 93%

TOTAL 18,399,698 3.4% 100%

Other commercial services 10,147 -37.5% 1%

Other traffic types 322,161 -7.4% 30%

Transit 759,088 1.7% 70%

TOTAL 1,091,396 -1.7% 100%

TOTAL 204,386,371 6.0% 100%

* Total operations including transits and other traffic types.

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TOTAL PASSENGER DISTRIBuTION IN 2011

Scheduled national 74,943,463

Non-scheduled national 1,275,403

Scheduled international 109,951,814

Non-scheduled international 17,124,295

Other types 322,161

Transits 759,088

TOTAL 204,376,224

Other services not included 10,147

TOTAL 204,386,371

Scheduled international53.80 %

Scheduled domestic36.67%Non-scheduled domestic

0.62 %

Non-scheduled international8.38 %

Other types0.16%

Transits0.37%

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PASSENGERS

COMMERCIAL

OTHER TyPES TRANSITSNATIONAL INTERNATIONAL

SCHEDuLED NON-SCHEDuLED SCHEDuLED NON-SCHEDuLED

2001 57,883,172 1,655,429 49,185,247 34,143,728 230,476 1,479,352

2002 55,857,853 2,261,547 49,773,812 33,386,752 288,783 1,500,565

2003 60,325,919 2,590,053 56,291,001 32,740,373 256,261 1,594,577

2004 65,566,398 2,930,938 65,384,904 30,197,281 286,452 1,756,843

2005 73,770,980 2,609,550 75,516,257 27,376,609 349,370 1,633,822

2006 79,186,689 2,322,090 83,079,805 26,809,437 406,284 1,710,022

2007 86,661,047 2,406,954 94,831,107 24,756,627 370,021 1,443,757

2008 80,115,031 1,840,632 98,037,782 22,313,674 372,680 1,163,180

2009 74,037,693 1,660,687 93,955,995 16,757,328 337,392 867,099

2010 74,850,230 1,789,704 99,033,465 16,008,990 347,770 746,211

2011 74,943,463 1,275,403 109,951,814 17,124,295 322,161 759,088

0

20

40

60

80

100

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

DOMESTIC COMMERCIAL PASSENGERS (in millions)Scheduled Non-Scheduled

0

20

40

60

80

100

120

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

INTERNATIONAL COMMERCIAL PASSENGERS (in millions)Scheduled Non-Scheduled

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AIRCRAfT* By TRAffIC TyPE

2011 % Chg 2011/2010 % Traffic

SCHEDuLED

Domestic 846,903 -1.8% 51%


TOTAL 1,666,656 3.1% 100%

CHARTER

Domestic 38,249 -13.9% 22%


TOTAL 177,429 -0.6% 100%


Other types 268,699 -9.0% 91%

TOTAL 296,223 -8.6% 100%

TOTAL 2,140,308 1.0% 100%

* Total operations including other traffic types

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TREND IN AIRCRAfT TRAffIC (in thousands)

year Total Operations year Total Operations

2001 1,902 2007 2,502

2002 1,894 2008 2,420

2003 1,969 2009 2,169

2004 2,057 2010 2,120

2005 2,210 2011 2,140

2006 2,319

2000

2300

2600

1700

1400

1100

800

2001 2002 2003 2004 2005 2006 2007

2,502

2008 2009 2010 2011

1,902 1,8491,969

2,057

2,2102,319

2,420

2,169 2,120 2,140

TREND IN AIRCRAfT TRAffIC (in thousands)

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AIR CARGO TRAffIC*

2011 % Chg 2011/2010 % Traffic

SCHEDuLED

Domestic 125,505,288 -6.6% 22%

International 454,298,185 8.0% 78%

TOTAL 579,803,473 4.5% 100%

CHARTER

Domestic 21,353,393 22.2% 23%

International 70,596,481 -11.2% 77%

TOTAL 91,949,874 -5.2% 100%


Other traffic types 265,371 -56.5% 2%

Transits 13,153,131 108.2% 95%

TOTAL 13,811,198 84.3% 100%

TOTAL 685,564,545 4.0% 100%

* Total cargo including transits and other traffic types.

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TREND IN CARGO TRAffIC (in thousands of tons)

year Total cargo year Total cargo

2001 601 2007 643

2002 596 2008 643

2003 605 2009 570

2004 653 2010 659

2005 629 2011 686

2006 626

650

700

600

550

500

450

2001 2002 2003 2004 2005 2006 2007

643

2008 2009 2010 2011

601 596605

653

629 626

643

570

659

686

TREND IN CARGO TRAffIC (in thousands of tons)

* Total cargo including transits and other traffic types.

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COMPARISON Of TRAffIC AT EuROPEAN AIRPORTS

Europe average 2011 (Global ACI)* 7.1%

AIRPORT CODE THOuSANDS of PASSENGERS CHANGE**

1 London Heathrow (UK) LHR 69,434 5.4%

2 Paris Charles de Gaulle (France) CDG 60,971 4.8%

3 Frankfurt (Germany) FRA 56,436 6.5%

4 Amsterdam (Holland) AMS 49,755 10.1%

5 Madrid-Barajas (Spain) MAD 49,644 -0.4%

6 Munich Franz Josef Strauss (Germany) MUC 37,764 8.8%

7 Roma Fiumicino (Italy) FCO 37,651 3.9%

8 Estambul Ataturk (Turkey) IST 37,398 16.3%

9 Barcelona-El Prat (Spain) BCN 34,388 17.8%

10 London Gatwick (UK) LGW 33,668 7.3%

11 Paris Orly (France) ORY 27,139 7.7%

12 Moscow Domodedovo (Russia) DME 25,702 15.5%

13 Antalya (Turkey) AYT 25,183 15.2%

14 Zurich (Switzerland) ZRH 24,284 6.4%

15 Palma de Mallorca (Spain) PMI 22,724 7.6%

16 Copenhaguen (Denmark) CPH 22,673 5.7%

17 Moscow Sheremetyevo (Russia) SVO 22,555 16.7%

18 Vienna (Austria) VIE 21,106 7.2%

19 Oslo (Norway) OSL 21,093 10.5%

20 Dusseldorf (Germany) DUS 20,339 7.1%

* Global ACI data as of March 28, 2012, for 2011.** Change from 2010 to 2011.

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Infrastructures

PROJECT AND CONSTRuCTION CRITERIA

In 2011, the Directorate of Infrastructure, in an effort to comply with the airport management model system included in the provisions of Royal Decree 13/2010 of December 3rd, which makes up the new legal framework for the modernization of the Spanish airport system, developed projects and executed the programmed constructions, con-tributing to the improvement of quality and the development of the airport and air traffic infrastructure, maintaining high levels of safety and prevention of workplace hazards (goods and people), ensuring the execution of the projects established in the corresponding environ-mental impact statements, contributing to the growth of the gener-ated resources and complying with applicable rules and guidelines.

Security and prevention: maintaining the highest levels of security is a top priority, as evidenced by every project that is carried by the Directorate of Infrastructure, which relies on a comprehensive secu-rity approach. These comprehensive security measures start with the inclusion in the tender of the specifications of the preventive criteria Air-side view of the Alicante Airport terminal

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required by Aena by current legislation regarding the minimum provisions on the security of people and the prevention of workplace hazards. These measures are then monitored during the execution phase to ensure strict compliance with current legislation.

Quality assurance: one of the fundamental priorities of the Directorate of Infrastructure is to guarantee the quality of its actions. In this sense, this Directorate directs, oversees, supervises and coordinates the activities related to the development and monitoring of the Quality Man-agement System, in addition to the activities related to the technical audits of the construction work executed under its authority.

Environment: another priority is aligning the development of the Directorate of Infrastruc-ture‘s projects with environmental protection. To that end, the Directorate manages the dif-ferent activities and actions necessary and carries out different studies, projects and reports required by environmental authorities, performing environmental monitoring and control of the project phases until the end of the construction. The Directorate also directs and manages the different environmental activities arising from the execution of projects and cooperates with the Directorate of the Environment in conducting and processing environmental impact studies of the Directorate’s projects.

In addition, the special plans Plan Levante and Plan Malaga, responsible for the execution and development of the necessary infrastructures for the expansion and adaptation of the Alicante and Valencia airports on the one hand, and Malaga-Costal del Sol on the other, continued dur-ing 2011, progressing in the projects and executing the scheduled constructions designed to modernize the facilities, as well as contributing to the improvement of the airports’ image as perceived by users and by society in general.

Barcelona-El Prat Airport

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PLAN LEVANTE

Work on the Alicante Airport was completed in March 2011. The most emblematic part of the airport expansion process started five years ago: the New Terminal Area, a modern and comfortable space for patrons and users that doubles its former capacity. Work also took place in the airfield to adapt its facilities to existing demand, including the expansion of the aircraft hold area.

In the Valencia Airport much of the work for the second expansion phase was completed during 2011, providing the terminal build-ing with an additional 26,000 m² and the car park with 1,800 more parking spaces. Work was also completed on the construction of two aircraft aprons, increasing the parking area by 200,000 m². Finally, also complet-

ed was the construction of the new power plant, which will multiply the power supplied to the airport’s facilities threefold.

PLAN MáLAGA

Work to expand the flight field, including a new runway and other actions to increase the capacity of the Malaga-Costa del Sol Airport, was completed in 2011. In 2012 the airport will be certified by the National Aviation Safe-ty Agency (AESA), becoming the third airport to be thus certified after Madrid-Barajas and Ibiza. We also finished the actions commited with the Ministry of Public Works for the new walkway between terminal building T3 and the railway station. Therefore, work for the Airport’s expansion are on schedule.

In March 2011, the New Terminal Area in Alicante entered service after

five years of construction.

The expansion of the airfield at the Malaga-Costa del Sol Airport was

completed in 2011.

View of the inside of the Malaga-Costa del Sol terminal

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MOST SIGNIfICANT PROJECTS uNDERWAy IN 2011

fILE AIRPORT fILE TITLE COST (million €)

DuRATION (months)

START fINISH

0839/10 ALMERIA New FFS building 1.91 13.00 27/6/2011 27/7/2012

0177/10 ASTuRIAS Roofing and expansion of cart area. 5.50 10.00 14/3/2011 14/1/2012

1046/10 ASTuRIAS Tarmac work 4.61 12.00 21/7/2011 21/7/2012

0358/11 BARCELONA-EL PRAT Supply of a SACTA-VICTOR for the new apron control tower. 2.56 5.00 5/8/2011 5/1/2012

0405/11 BARCELONA-EL PRAT Supply various voice and data com. equip. for direct entry into service of apron. and contingency ATC in south twr

2.30 12.00 19/8/2011 19/8/2012

0290/11 BARCELONA-EL PRAT Construction of new security checkpoints in T1 1.48 11.00 19/12/2011 19/11/2012

1214/09 BILBAO Upgrade airfield. 7.83 12.00 7/3/2011 7/7/2012

1344/09 BILBAO Security road and perimeter fence. 2.38 12.00 20/6/2011 20/6/2012

0238/10 BILBAO De-icing pad. 1.98 5.00 15/12/2011 15/5/2012

0246/09 LA CORuÑA Relocation of the “Casa dos Vales” house. 1.03 9.00 16/12/2010 25/4/2012

0944/10 LA CORuÑA Runway extension. 59.36 32.00 9/6/2011 9/2/2014

0011/08 fuERTEVENTuRA Apron extension phase III 1.72 6.00 11/7/2011 26/4/2012

1035/10 fuERTEVENTuRA Upgrade airfield 6.17 12.00 8/8/2011 8/8/2012

1142/10 GIRONA-COSTA BRAVA Actions in airfield for aerodrome certification. 4.61 7.00 4/11/2011 16/4/2012

1529/07 GRAN CANARIA Expansion of terminal building. 124.65 36.00 16/9/2009 16/2/2013

0176/08 GRAN CANARIA New building on the field for airlines and security. 6.66 13.00 1/12/2010 1/5/2012

0473/10 GRAN CANARIA Construction of car park building P-3. 10.42 24.00 28/1/2011 28/1/2013

0352/08 GRAN CANARIA Expansion of north/south apron. 6.89 10.00 17/10/2011 17/8/2012

1652/08 IBIZA Adaptation of terminal building to a functional design. 59.37 32.00 2/10/2009 2/6/2012

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DuRATION (months)

START fINISH

0340/10 IBIZA Supply of equipment and furniture. 2.40 19.00 3/12/2010 3/7/2012

0676/11 IBIZA Reinforcement of terminal building roof. 1.61 4.00 28/11/2011 28/3/2012

1324/08 LA PALMA Demolition of buildings and first expansion of east border apron.

6.54 18.00 18/8/2010 18/5/2012

1045/09 LANZAROTE Upgrade apron. 5.58 20.00 1/7/2010 1/3/2012

1158/09 MADRID-BARAJAS New commercial areas terminals 1,2 and 3. 3.80 10.00 1/7/2010 1/1/2012

1084/09 MADRID-BARAJAS New access pathways and roads to the area between run-ways 18-36.

5.36 12.00 27/9/2010 16/2/2012

0683/10 MADRID-BARAJAS Supply commercial premises in central sector with utilities. 2.45 14.00 14/2/2011 14/4/2012

0350/08 MENORCA New wastewater treatment plant. 2.83 6.00 27/9/2010 2/2/2012

0359/09 MENORCA Improvement of runway pavement and taxiways. 6.14 15.00 29/10/2010 29/1/2012

1157/09 MuRCIA-SAN JAVIER Upgrade check-in and boarding areas. 2.79 12.00 4/10/2010 4/1/2012

0961/08 PALMA MALLORCA Remodel apron A (Phase II) 19.84 25.00 27/8/2010 27/9/2012

0109/11 PALMA MALLORCA Remodel arrivals hall. 3.84 8.00 15/11/2011 15/7/2012

0952/10 REuS Outfit car park areas. 5.10 17.00 20/10/2011 20/3/2013

0184/10 SABADELL Construction of parking apron from Romeo 3 to the Avialsa area.

1.06 7.00 24/11/2011 24/6/2012

1512/08 TENERIfE NORTH Channel taxi area water to the “El Gomero” ravine. 1.04 9.00 15/11/2010 26/8/2012

1667/08 TENERIfE NORTH Fix apron pavement. 8.37 24.00 3/2/2011 3/2/2013

0666/10 TENERIfE NORTH Upgrade runway edges and taxiways. 3.17 12.00 23/5/2011 23/5/2012

0898/10 TENERIfE NORTH Upgrade and improve the air-conditioning system in the Terminal Building.

4.47 15.00 29/6/2011 29/9/2012

0788/10 TENERIfE SOuTH Improve roads. 1.01 12.00 15/4/2011 15/4/2012

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MOST SIGNIfICANT PROJECTS COMPLETED IN 2011fILE AIRPORT fILE TITLE COST

(million €)DuRATION

(months)START fINISH

0353/11 ALBACETE Upgrade pavement of the air base runway. 2.49 3.00 07/07/11 07/10/11

1117/09 ASTuRIAS Repair pavement in runway threshold. 1.03 3.00 04/07/11 04/10/11

1790/08 BADAJOZ Repave runway and taxiways. 4.22 6.00 28/09/10 01/08/11

1639/07 BILBAO Upgrade and operational improvements of Terminal Building 24.90 14.00 15/01/09 14/02/11

1158/07 CÓRDOBA Expand runway. 21.86 19.00 23/03/09 23/06/11

0058/09 CÓRDOBA Processing of expropriated areas 3.31 32.00 27/04/09 27/12/11

1373/09 fuERTEVENTuRA Repair roads. 1.65 8.00 09/09/10 09/05/11

1183/08 GIRONA-COSTA BRAVA Upgrade airfield. 2.79 9.00 27/09/10 27/06/11

0812/09 LA GOMERA Channel ravines and rainwater 2008 0.91 3.50 24/01/11 08/05/11

1642/08 GRAN CANARIA Upgrade airfield. 5.64 12.00 13/07/10 13/10/11

0609/10 fGL GRANADA Upgrade airfield. 2.77 10.00 10/01/11 10/11/11

0424/10 IBIZA Upgrade airfield. 1.53 6.00 10/11/10 24/05/11


DuRATION (months)

START fINISH

0789/10 TENERIfE SOuTH Air-side projects 1.86 12.00 29/4/2011 29/4/2012

0667/10 TENERIfE SOuTH Functional improvements in E.T. and various lighting sys-tems throughout the airport.

6.48 18.00 15/7/2011 15/1/2013

0012/11 TORREJÓN Construction work and various Phase Two activities. 2.66 16.00 11/11/2011 11/3/2013

0093/10 VIGO Expansion of Terminal Building 45.31 35.00 24/9/2010 24/8/2013

0083/11 VIGO Upgrade airfield. 9.98 12.00 20/10/2011 20/10/2012

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DuRATION (months)

START fINISH

0255/10 JEREZ New access to airport activity areas. 2.01 6.00 21/02/11 21/08/11

1270/08 LA PALMA New FFS building. 6.63 15.00 12/03/10 12/06/11

1497/08 LANZAROTE Construction of new bus park. 6.25 15.00 28/01/10 11/12/11

0172/09 LANZAROTE Upgrade airfield. 4.01 12.00 12/02/10 15/10/11

1014/08 LOGROÑO Adapt airport to NTAC. 1.65 6.00 13/09/10 13/03/11

0095/08 LOGROÑO Prepare for ILS Cat I installation and upgrade runway thresholds.

6.36 16.00 04/01/10 04/05/11

0861/09 MADRID-BARAJAS Upgrade tunnel TSA ventilation. 3.30 10.00 24/04/10 24/02/11

0368/10 MADRID-BARAJAS Security tasks in T4 and T4S roof accesses. 4.18 12.00 25/11/10 25/11/11

0694/10 MADRID-BARAJAS New warehouses for commercial premises in T123. 1.31 6.00 16/02/11 16/08/11

0283/10 MENORCA Upgrade airfield. 5.97 12.00 12/11/10 27/12/11

1257/06 MuRCIA-SAN JAVIER Instrumentation, adaptation and application of ATEX rules for fuel facilities.

9.76 8.00 25/02/08 13/04/11

0865/09 MuRCIA-SAN JAVIER Shape terrain for threshold 23 glide path. 1.59 8.00 19/10/10 19/06/11

1083/09 PALMA MALLORCA Construction of commercial areas in module C. 8.93 12.50 07/06/10 27/05/11

0218/09 REuS Upgrade airfield. 13.85 18.00 22/03/10 22/12/11

1174/09 SANTANDER Upgrade and standardize Terminal Building. 1.50 14.00 30/04/10 30/06/11

1670/08 SANTIAGO Upgrade airfield. 5.38 10.00 05/04/10 05/08/11

0083/10 SANTIAGO Upgrade taxiways. 2.20 7.00 27/06/11 07/12/11

0440/07 SANTIAGO New Terminal area. 125.84 26.00 24/06/09 24/08/11

1651/08 SANTIAGO Aircraft parking south side. 23.46 17.00 02/11/09 02/04/11

0330/10 SANTIAGO Commercial areas in the NAT. 1.36 4.50 10/09/10 14/01/11

0670/10 SANTIAGO Supply and installation of license plate recognition manage-ment system in every parking lot.

1.23 2.50 08/04/11 21/06/11

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DuRATION (months)

START fINISH

0441/07 SEVILLE Expansion of car park. 14.95 24.00 04/03/08 01/10/11

1520/08 SEVILLE Rainwater treatment in aircraft parking apron. 1.00 5.00 17/01/11 17/06/11

0610/10 SEVILLE Upgrade roofs of old and new terminal buildings. 1.62 7.00 25/02/11 25/09/11

0441/07-1 SEVILLE Expansion of car park. 13.91 15.00 01/07/10 01/10/11

1787/08 TENERIfE NORTH Access road to taxi area and hangar for Civil Guard. 1.53 6.00 10/01/11 10/07/11

1515/08 TENERIfE NORTH Upgrade airfield 2.45 12.00 05/04/10 05/04/11

0549/09 TENERIfE NORTH NET underground car park waterproofing 1.05 8.00 07/03/11 07/11/11

1182/08 TENERIfE SOuTH Upgrade airfield 2.96 9.00 05/04/10 05/01/11

1182/09 TENERIfE SOuTH Waterproof roofs and bring several buildings up to fire code.

1.55 10.00 19/08/10 19/06/11

0886/08 TORREJÓN Construction and miscellaneous activities. 8.80 16.00 27/11/09 27/03/11

0023/09 VALLADOLID Adapt airfield to ICAO legislation 1.75 7.00 05/07/10 02/06/11

1419/06 VIGO Car park building, roads and technical block. 41.45 28.00 23/11/07 23/05/11

1413/07 VIGO Supply and installation of license plate recognition manage-ment system

0.96 12.00 02/11/09 14/05/11

1540/08 VITORIA Expand and upgrade runway and strips. 10.60 12.00 21/06/10 21/06/11

0679/09 ZARAGOZA Supply and installation of two emergency stopping systems. 3.34 13.00 29/07/10 29/08/11

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MOST SIGNIfICANT PROJECTS COMPLETED IN 2011fILE AIRPORT fILE TITLE COST



474/10 GIRONA-COSTA BRAVA Tasks in airfield for aerodrome certification. 0.12 6 09/08/10 09/02/11

847/09 TENERIfE NORTH New handling area. Gas station, garages, warehouses, facilities and water tank.

0.20 15 17/05/10 25/08/11

383/10 VALLADOLID Repair pavement. 0.13 11 10/08/10 10/07/11

447/10 ZARAGOZA Improve taxiway C11. 0.04 9 30/07/10 25/04/11

852/09 SAN SEBASTIáN Remodel commercial aviation apron. 0.04 12 02/03/10 02/03/11

MOST SIGNIfICANT SuPPLy AND INSTALLATION PROJECTS uNDERWAy IN 2011-12fILE AIRPORT fILE TITLE COST



871/06 fuERTEVENTuRA Automatic baggage screening and handling system 31.15 48 02/08/07 29/07/12

1544/08 MuRCIA-SAN JAVIER Acquisition, installation and integration of baggage screen-ing system.

2.77 10 03/09/09 18/05/12

1545/08 ASTuRIAS Expansion of baggage screening system. 1.09 6 08/09/10 26/10/12

92/10 VALENCIA Acquisition, installation and integration of baggage screen-ing system in terminal T2.

4.54 21 06/09/10 03/06/12

837/10 GRAN CANARIA Acquisition, installation and integration of a baggage screening and handling system in Terminal Building expan-sion area.

5.72 16 29/04/11 29/08/13

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DuRATION (months)

START fINISH

942/10 VIGO Acquisition, installation and integration of baggage screen-ing system in Terminal Building expansion area.

3.4 15 27/06/11 27/06/13

704/10-4 IBIZA Supply and installation of boarding bridges and aircraft service equipment for the Terminal Building

3.94 7 21/10/11 21/05/12

704/10-5 LA PALMA Supply and installation of boarding bridges and aircraft service equipment for the Terminal Building.

2.89 8 07/11/11 07/06/12

704/10-6 MADRID-BARAJAS Adapt stands for A-380 0.92 8 28/12/11 28/08/12

704/10-2 VALENCIA Supply and installation of boarding bridges and aircraft service equipment in new Terminal Building expansion area.

2.48 8 17/11/11 17/07/12

704/10-1 and 3

VIGO Supply and installation of boarding bridges and aircraft service equipment in new Terminal Building expansion area and remodel the current ones.

2.35 13.5 17/10/11 31/12/12

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PLAN LEVANTEMOST SIGNIfICANT PROJECTS COMPLETED IN 2011


DuRATION (months)

START fINISH

DIA 1044/04 ALICANTE Terminal area. 308.5 59 20/07/05 15/03/11

PLV 1056/2008 ALICANTE Integrated security system. 7.04 15 12/06/09 31/03/11

DIA 1543/2008 ALICANTE Upgrade airfield. 10.83 12 27/08/09 18/05/11

PLV 1791/2008 ALICANTE Upgrade thresholds. 5.85 17 22/08/09 30/06/11

PLV 1522/2007 VALENCIA Expand aircraft parking apron in service area. 11.23 14 26/04/10 26/06/11

PLV 1523/2007 VALENCIA Expand aircraft parking apron in general aviation area 2. 5.92 14 26/04/10 26/06/11

PLAN LEVANTEMOST SIGNIfICANT PROJECTS COMPLETED IN 2011


DuRATION (months)

START fINISH

PLV 229/2010 ALICANTE Expand aircraft holding area. 8.7 14 29/11/10 29/01/12

PLV 1524/2007 VALENCIA Expand Terminal T2. 37.32 22 26/04/10 26/02/12

PLV 1525/2007 VALENCIA Expand public car park. Phase Two. 21.86 24 22/04/10 22/04/12

PLV 452/2010 VALENCIA New power plant and refurbish electric system. 17.08 18 26/12/10 26/06/12

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PLAN MáLAGAMOST SIGNIfICANT PROJECTS COMPLETED IN 2011


DuRATION (months)

START fINISH

PAG 412/2009 MáLAGA Expand drinking water supply system. 2.61 8 10/02/11 10/10/11

PAG 981/2010 MáLAGA New signposting of current airfield. 2.16 7 31/03/11 30/09/11

PAG 982/2010 MáLAGA Removal of indoor hindrances. 9.77 6 31/03/11 30/09/11

PAG 569/2010 MáLAGA Supply and installations of new pedestrian walkway between terminal building T3 and railway station.

0.85 6 28/12/10 28/06/11

PAG 573/2010 MáLAGA Taxi stop shelter for the new terminal building. 0.81 6 23/12/10 23/06/11

PAG 856/2009 MáLAGA New radio center. 0.97 12 26/07/10 25/05/11

PAG 1340/2006 MáLAGA Expansion of airfields. Construction work. 363.42 44 31/08/07 28/04/11

PAG 1341/2006 MáLAGA Expansion of airfields. Lighting and electrical system. 37.58 44 31/08/07 30/04/11

PAG 1281/2007 MáLAGA Access roads next to terminal building and taxi stop. 7.47 29 03/09/08 23/01/11

PLAN MáLAGAMOST SIGNIfICANT PROJECTS COMPLETED IN 2011


DuRATION (months)

START fINISH

PAG 685/2010 MáLAGA Preparation of documentation required to comply with Aena re-quirement Exa 41 in the airfield.

105,000.00 12 26/11/10 26/11/11

PAG 133/2009 MáLAGA A.T.R.P. Remodelling of terminal building. 2,449,476.64 14 24/02/10 24/04/11

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Commercial Services and Property Management

The main objective of the Commercial Services and Property Manage-ment Department is to maximize the revenues coming from the dif-ferent lines of business, while meeting the needs and demands of the passengers and helping to fund new investments throughout the en-tire network of airports under its purview.

Commercial revenue increased by 4.14% (24.67 million euros) in 2011 compared to the previous year, up to a total amount of 620.5 million euros. The per-passenger commercial revenue was 3.05 eu-ros, and commercial revenue represented 27.03% of all aviation rev-enue in 2011.

Commercial revenue in 2011 was 620 million, 4.1% more than the previous year

The commercial revenue per passenger was 3.05 euros

Digital advertising media at the Madrid-Barajas Airport

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The top seven network airports had a remarkable contribution in commercial revenues during 2011: Madrid-Barajas, Barcelona-El Prat, Palma de Mallorca, Málaga-Costa del Sol, Alicante, Tenerife South and Gran Canaria, which represented 76.91% of the total.

The most relevant business lines in the Aena network generating com-mercial revenue were: retail and duty free shops, parking areas, car rentals, food outlets, property management (rentals), advertising, fuel and business operations.

COMMERCIAL REVENuE DISTRIBuTION By LINE Of BuSINESS

The table below shows a comparison of the commercial activities in 2011, grouped by line of business, with respect to 2010:

BuSINESS LINE Chg(%) 2011 /2010

% Total commercial revenues

Duty free shops 9.49% 18.94%

Car park -6.87% 15.69%

Car rental -0.59% 15.48%

Food outlets 8.41% 13.11%

Shops 6.40% 11.64%

Rentals 2.64% 7.56%

Business operations 15.02% 5.09%

Fuel 12.83% 4.74%

Advertising 1.94% 4.56%

Consumption 14.57% 2.99%

Lounges -2.97% 0.16%

Other 30.34% 0.04%

Outside view of the VIP lounge at the Tenerife North Airport

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STRATEGIES

DEVELOPMENT Of NEW COMMERCIAL AREAS

One of the main objectives of the Commercial Services and Property Management Department is the optimisation of airport commercial venues by introducing large retail chains and prestigious brands in both shops and food outlets, as the different users of our facilities (passengers, companions, and employees) are demanding according to some studies carried out.

Below is a detailed account of the different projects carried out in air-ports:

Alicante Airport

After the opening last March 2011 of the new terminal, the commercial and retail surface expanded to a total of 8,500 m², located all through-out the terminal building. A commercial area with transparent shops in which glass and steel take precedence to make maximum use of the light of the Costa Blanca. The new design increased the commercial surface by 46.8%, arranged in 22 new stores offering a wide array of prestigious brands. The new duty-free shop “The Shop” is emblematic of the Walk-Through store concept. It is located close to the air ac-cess, with its surface area of 1,478 m² acting as a hub leading to the boulevard where the rest of the shops and food outlets round out the commercial offering. An additional two duty-free shops opened at the end of the commercial area, a 229-m² “Express Store” and a 138-m² “Arrival Shop”.

Walk-through shop in the new Alicante Airport terminal

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La Palma Airport

Once the new terminal opened on July 6th, 2011, the surface area of the commercial establishments went from 94 m² to 264 m², resulting in a significant improvement in the commercial offerings.

Also, three shops and one food outlet were put out to tender. Thanks to these actions the new terminal will feature three shops and four food outlets.

Santiago Airport

The new terminal area, put into service in 2011, has a brand new com-mercial area concentrated on the air side, with the 327-m² duty free shop “The Shop” being its most notable addition.

Bilbao Airport

The departures area was remodelled and the duty free shop relocated to build a new, larger facility of approximately 228 m² that combines the concepts of Duty Free and Travel Value.

Palma de Mallorca Airport

In module C, five new stores began commercial operations in June 2011. Covering a total surface of 1,700 m², they offer such diverse products as food, clothes and accessories. In July, the duty free shop “The Shop” with a surface area of 1,587 m² was opened.

Interior of the new Santiago Airport terminal

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COMMERCIAL REVENuE CONTROL

The implementation of a new revenue control system stands out as one of the key strategy issues of the Department. This management tool provides detailed knowledge of the purchasing and consumption habits of the various patrons, enabling us to make more effective deci-sions to improve our commercial offerings.

MARKETING INITIATIVES

The creation of Aena Aeropuertos in June 2011 involved changing Aena‘s commercial image. New colours and the new slogan, ”choose, taste and enjoy”, were designed to spearhead the commercial side of the new company and enhance the playful aspect of the traveller’s stay in the airport terminal.

With the opening of the new terminal at the Santiago Airport in Octo-ber 2011, the new Aena Aeropuertos brand was launched for the first time. Huge canvases hanging directly from the structure’s roof revealed a varied, attractive, and wide offering of food and retail goods and services.

Promotional activities associated with the opening of new terminals in Alicante and La Palma included giveaways for purchases over a certain amount.

Well-established promotional activities from recent years, like “Book Week”, were updated in the month of April time and sponsored under the new brand.

Christmas concert at the Madrid- Barajas Terminal 4

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Our traditional Christmas campaign flooded every terminal of 13 of the network’s airports with light, encouraging sales at this special time of year. A new feature of the 2011 Christmas decoration campaign was a performance by students from the Real Conservatorio de Músi-ca of Madrid, who offered classical music recitals in the Plaza Comer-cial of Madrid-Barajas Airport terminal T4. The initiative had a positive response by visitors and workers and enjoyed wide media coverage.

SHOPS

Given the importance of our Duty Free retail activity, present in 15 Aena airports, the analysis of strategy and conditions of the new bids are being analyzed prior to the termination of the current contract.

In 2011 the walk-through store at the new terminal building of the airport of Alicante opened to the public, and the walk-through stores currently located in the terminals of Barcelona - El Prat T2, and Ma-drid-Barajas Airport T4 were consolidated, in keeping with interna-tional trends in the configuration and display of commercial areas in airports.

The retail offering was also expanded in the Madrid-Barajas Airport terminals 123.

New shops were opened in Module C of the Palma de Mallorca Air-port and in the Bilbao and Santiago de Compostela airports. Customer service was improved by installing boarding gate information screens inside the shops to give passengers peace of mind.

Sports outlet at the Madrid-Barajas Terminal 3

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CAR PARKS

Car park management initiatives focused on becoming more competitive than other car parks near the airport and managed by other companies.

The strategy aims to address different custom-er price and service needs with a segmented car park service portfolio based on the dura-tion of stay. A communications campaign was also launched to highlight the competitive benefits Aena airport car parks offer compared to those of external operators, in terms of se-curity, quality of service, facilities and proximity.

This commercial strategy led to a more flex-ible commercialization of the service through new channels, and to encourage the use of new marketing tools. For example, several ac-tivities conducted on the Aena Aeropuertos website took on great relevance, focusing on improving communication over different car park choices, and making access to contents easier for users using the Aena Aeropuertos home page and the Infovuelos page. Simul-taneously, the online reserve system became operational, and is currently available for long stay car parks, though we are working to have the tool available all car park services in 2012.

Car park building at the Barcelona-El Prat Airport

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Likewise, in 2011 we opened the long stay, express and low-cost car parks in Madrid-Barajas Airport; also, the express car park in the Bilbao Airport, and the long-stay car park in the Seville Airport.

The car park fee policy addresses different customer price and service needs with a segmented parking service portfolio according to the duration of stay, proximity and additional services. Rotation fees and specific proposals for new products in overloaded airport car parks were also approved. To this end, we started to work on the analysis, proposal and implementation of a pricing system for car parks.

In 2011, the number of parking spaces in Aena airports exceeded 160,000.

CAR RENTAL

Car rental services are provided by national and international opera-tors. The frequency with which this service is used varied due to the growth of low-cost travel, since it is often part of a package deal or arranged at the point of origin. To address this threat, a web channel advertising car rental services was widely promoted to familiarize users with various offers from the moment they first plan their trip.

Express car park Bilbao Airport

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fOOD SERVICES

Food services are offered by concessionaires who rely on different con-cepts to satisfy the wide-ranging demands of all users by offering eve-rything from fast food to restaurants whose chefs have been awarded Michelin stars.

In 2010 Aena started the process of renewing the image of airport food services, a process that was expanded across the entire Aena network over the course of 2011.

As an innovative strategy, we created a new concept in food service simultaneously adapted to the consumer on different levels and which pays special attention to service quality and price control.

Demand from users and customers is heavily influenced by both the environment and the personal and cultural circumstances of each in-dividual; in this respect, the new food service offering can be adapted so as to satisfy each client’s specific need. Key factors considered were cultural patterns, economic capacity, available time and consumption habits.

The substantial investment the company made in infrastructures in the last few years offered a great chance to renew the existing offering by adapting it to the new strategy and introducing novel concepts. Now-adays, Aena network customers and users can choose from among various food service concepts. In 2011, the offering was considerably widened, ranging from the ordinary sandwich to cuisine d’auteur, the classical tapa, the set menu or portions.

Inside view of the La Moraga Restaurant, Malaga-Costa del Sol Airport

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Standard food service concepts were selected for the different air-ports, with world class brands. The multicultural environment led to the implementation of ethnic food (including English, German, Italian, Asian, Turkish and Mexican cuisine), which was favourably received by our patrons.

In recent years, the “Spain” brand name has received international rec-ognition and prestige, with gastronomy as one of its key values. We have made good use of this situation to introduced a wide range of designation of origin products.

Another fundamental and determining factor for customers is time availability, which is why new food service concepts range form takea-way food to more settings with the proper ambiance in which to enjoy a nice after-lunch conversation.

We also installed common sitting areas, a space with tables shared by more than one food outlet, allowing a group of users the choice of selecting the food service that best suits their preferences.

Another segment of patrons of Aena’s airport network services we are catering to is passenger companions The new strategy takes into ac-count the needs of companions by offering a diverse range of quality food services in the free access areas of the facilities.

Food service operators are held to high quality standards, like remov-ing food products not sold after three hours of being prepared. These standards made a key contribution to the gradual improvement in the quality perceived by patrons.

Holding monthly meetings with food service operators and keeping a strict price control policy so customers will not find price differences in the same food outlet outside the airport were key to the entire im-provement process.

Madroño Resturant in the Madrid-Barajas Airport

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In 2011, consumers were able to enjoy four restaurants run by Miche-lin-starred chefs:

• In the Malaga-Costa del Sol Airport, we can find La Moraga, a res-taurant run by Dani García that offers a revamped version of Ma-laga’s traditional cuisine.

• In Barcelona-El Prat, Carles Gaig moved his hundred-year-old reci-pes and the character of the stoves of his prize-winning restaurant in Barcelona’s Horta quarter to Porta Gaig, located in the ultramod-ern environment of the airport’s new terminal.

• Alicante offers the freshness and dynamics of the sushi-bar concept under Quique Dacosta’s leadership in his restaurant “Aire Tapas-bar”, which takes the concept of tapas to new heights.

• In Madrid-Barajas, Beatriz Sotelo brings us a top quality Galician menu in the “El Madroño” restaurant.

The first result of these changes was the high quality service provided.Once these concepts took root in terms of planning and periodic con-trols, we started working on providing these restaurants with value added service, such as a free wireless system for recharging mobile phones and other electronic devices, and a preparation time guarantee shown right on the menu.

PROPERTy DEVELOPMENT (RENTALS)

In 2011 a leaseback agreement was signed with CLASA on a 9,346 m² lot of developed land located in the Tenerife North Airport to build a new cargo terminal to foster air transportation and related logistics activities.

In June and July, two corporate aviation fixed based operators (FBO) began operations at the Palma de Mallorca Airport.

Furthermore, two partnership agreements were signed with the An-dalusian Research and Development Agency (IDEA) and the Associa-tion of Science and Technology Parks of Spain (APTE) to evaluate and commercialize plots of land by creating two technology parks to in which to locate R&D companies. The first partnership agreement only included Andalusian airports. The second was wider in scope and in-cluded every Aena airport.

In December a partnership agreement was signed with the Consell Va-lencià de l’Esport of the Valencia Regional Government for the licenced use of the golf facilities at the Valencia Airport.

The objective is to enhance airport commercial areas and to continue to introduce large retail chains and

prestigious brands in shops and restaurants.

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AVIATION fuEL

In 2011 two contracts were awarded for the aviation fuel supply at the Madrid-Barajas, Barcelona-El Prat, Palma de Mallorca, Malaga-Costa del Sol and Leon airports. In parallel, construction was started to con-nect the pumping system of the Madrid-Barajas Airport fuel network to CLH’s storage tanks in Torrejon.

The new pumping system as the Alicante Airport was also placed in operation, and construction was started on a new aviation fuel stor-age facility at the Seville Airport. Moreover, the Vitoria Airport started with the remodelling of its fuel facility, whereas the Son Bonet opened a new facility.

This business line relies on constantly improved facilities, as evidenced by the proposals made in 2011 to extend (Zaragoza Airport) or relocate storage facilities (Palma de Mallorca, Lanzarote and Madrid-Torrejon).

ADVERTISING

In 2011 state-of-the-art digital displays (full HD) were installed in strate-gic areas of the airports by advertising companies (video screens, walls, billboards), which attracted advertisers’ attention for their impact and innovation compared to traditional advertising displays. These displays were installed in Madrid Barajas T4 and in the Malaga-Costa del Sol, Alicante, Gran Canaria, Tenerife South and Palma de Mallorca airports.

Advertising activity in Spanish airports will be opened to public tender in 2012, and currently we are analysing the best strategy to follow. The idea is to preserve the advertising value of airport locations, using not only traditional advertising displays but also supplementing them with marketing afor events and shows. Adding new technologies for adver-tising use in airports really enhances the passenger’s travel experience.

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Aena Internacional

Since beginning operations in 1998, Aena Internacional has been man-aging airport infrastructures abroad. Today we are present in eight coun-tries in Europe, America and Africa, strengthening Aena Aeropuertos’ position as the world’s foremost airport operator.

Aena Internacional develops its activity through different managing schemes, ranging from the ownership of airport assets to contracts for service or terminal management, or airport licences.

Aena Aeropuertos is present in 29 airports outside Spain (12 in Mexico, three in Colombia, three in the United Kingdom, three in Bolivia, one in Angola, one in Sweden and six in the United States, five of them under management contracts).

The recovery from the effects of the 2008 global financial crisis led to improved global air transportation figures in 2011 compared to those from 2010. According to the International Air Transport Association (IATA), passengers traffic grew by 5.9% compared to 2010.

Airbridge in Guadalajara Airport (Mexico)

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Aena Internacional’s presence abroad

Airports managed through investee companies

Management contracts

USA6

Angola1

Mexico12

Colombia3

United Kingdom3

Sweden1

Bolivia3

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Mexico:

GuadalajaraTijuana

Puerto VallartaSan José de los Cabos

HermosilloBajío

MoreliaLa Paz

MexicaliAguascalientes

ManzanilloLos Mochis

Colombia:

Cali

Colombia:

Barranquilla

Colombia:

Cartagena

United Kingdom:

Belfast InternationalCardiff

London Luton

Sweden:

Stockholm Skavsta

Bolivia:

CochabambaSanta Cruz

La Paz

USA:

Orlando Sanford

AENA INTERNACIONAL

Airports Concessions Development Ltd.

(ACDL)

33.34 % 33.34 %

40 %

10 %

100 %17.4 %

38 %

16.67 %

International activity: Business holdings

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Passenger traffic through Aena Internacional airports increased by 3.13% over the previous year, which in turn improved on the previous year’s figure by 2.8%. This growth led to a record 50.5 million passen-gers in 2011, compared to 48.9 million in 2010.

The ongoing cost control policy and sales development strategies ap-plied in different airports yielded better actual versus budgeted results, with the special contribution of ACDL-TBI which, for the first time since its acquisition, has distributed dividends among shareholders. Total income at the operating companies increased by 8.43% in 2011 compared to 2010.

Aena Internacional also engaged in air navigation activities such as in-specting radio-aids through its In-flight Verification Unit and support-ing Aena in key programs for the future of air navigation.

Airport services

MExICO

Grupo Aeroportuario del Pacífico (GAP)

The Grupo Aeroportuario del Pacífico (GAP) runs 12 airports located in the Mexico’s Pacific region, including those that service important cities like Guadalajara and Tijuana, as well as those located in four of Mexico’s most important tourism destinations: Puerto Vallarta, Los Cabos, La Paz and Manzanillo. The other six airports service cities like Hermosillo, Bajío, Morelia, Aguascalientes, Mexicali and Los Mochis.

Los Cabos Airport (México)

Total income of the franchise societies has increased in 8.43% in 2011 compared to 2010.

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These airports are located in 9 out of the 32 Mexican states; five of them service the capital cities of those states, covering a territory with a population of almost 26 million inhabitants. All the airports are des-ignated as international and six of them are among the ten most im-portant Mexican airports.

Aena Internacional has an interest in the Grupo Aeroportuario del Pací-fico through its 33.33% stake in Aeropuertos Mexicanos del Pacífico (AMP), a strategic partner of GAP; AMP owns 17.4% of GAP’s capital and holds a contract for technical assistance and technology transfer. Aena Internacional is an AMP shareholder qualified as an operating partner by the Mexican authorities. GAP is listed on the Mexican and New York stock exchanges and is one of the biggest private airport groups in America.

GAP continued with its socially responsible corporate policies, retain-ing in 2011 its ISO 9000 certification, certifications awarded by PRO-FEPA on enviromental protection compliance, and the certification of adequate levels of airport accessibility.

Airport activity

In 2011, GAP activity handled a total of 20.3 million passengers (20.2 in 2010), still suffering the consequences of Grupo Mexicana de Avi-ación’s closing.

During 2011 we carried out several airport marketing strategies in or-der to win back and implement new routes and frequencies, which allowed, on the one hand, to win back 60% of the seats offered by Mexicana, and on the other, to grow in the main GAP airports, as shown by a 32.5% increase in international traffic in the Guadalajara Airport versus a 14.2% increase in total traffic.

Despite traffic consolidation, the amount of commercial revenue and strict cost controls contributed to increasing operating revenue by 6%. Puerto Vallarta Airport (Mexico)

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In addition, in 2011, approximately 25% of al passenger volume in Mexico was handled by twelve GAP airports.

Actions

Development master plans programs as well as additional investment plans were carried out with an investment in 2011 of 1.422 billion Mexican Pesos.

In addition, the new documented baggage screening systems un-derwent remodelling in the Guadalajara Airport for the Panamerican Games, and the runways and aprons were repaved. Also, the Tijuana Airport’s terminal building was expanded.

As regards the commercial aspect, the expanded commercial areas of Guadalajara, Puerto Vallarta, Tijuana and San José del Cabo were put into service. Besides, commercial activities like advertising and VIP lounges were started up.

Aena Internacional Consultancy

The Technology Transfer Plan was executed with a special contribution in airport systems training, infrastructure planning, and airport facilita-tion, and through the implementation of the Scena operational system for airports belonging to the group.

COLOMBIA

Barranquilla Airport

Barranquilla Airport is managed by the company Aeropuertos del Car-ibe S.A (ACSA), an operating partner of Aena International and in which it holds a 40% stake.

Cali Airport (Colombia)

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The number of passengers in the Barranquilla Airport showed a down-turn of 1.4% in 2011, stabilizing the large increase of 31.7% reached in 2010. Domestic flights increased by 0.3% from the previous year, consolidating the growth of low-cost traffic that began in 2010. The number of international flights dropped by 13.9% due to changes in the low-cost market: reduction of Spirit Airline flights and the re-organization of LAN Perú routes after the acquisition of Aires. As a consequence of this, the revenue of the franchise decreased by 1.6%.

Cartagena de Indias Airport

Cartagena de Indias City Airport is managed by the Sociedad Aeropor-tuaria de la Costa S.A (SACSA). Aena Internacional is involved as an operating partner, holding 38% of the capital contract for technical assistance and technology transference.

In 2011, total passenger traffic increased by 3.79%, stabilizing the great increase of 27.9% reached in 2010. Regarding international traf-fic, the number of passengers showed a downturn of 8.3% compared to 2010, for the same causes listed for Baranquilla: changes in the low-cost market, reduction in the number of Spirit Airline flights and the reorganization of LAN Perú routes after the acquisition of Aires. The number of domestic passengers increased by 5.7%, stabilizing the 33.15% growth of 2010.

As a result of the factors mentioned so far, and of the good commer-cial revenue figures, SACSA’s operational income increased by 3.55%. which, added to cost control policies, allowed for better results than expected.

In 2011 investments were made to expand and restore the terminal building, and work on repaving and expanding the airfield was com-pleted. The 2011-2015 Commercial Plan was implemented, the pur-pose of which is to expand the terminal building.

Cartagena de Indias Airport (Colombia)

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Aena Internacional

96

Cali Airport

Cali Airport is managed by Aerocali S.A., a company that is 33.34% owned by Aena Internacional as an operating partner. Aena Interna-cional also holds a contract for technical assistance and technology transfer.

Traffic at this airport showed a downturn in 2.33% from the previous year, due to changes in the low-cost market and, although in 2011 it reached 3.35 million passengers, the 24.9% increase of 2010 upturn seems to have levelled off.

Sustained efforts by Aerocali to improve commercial revenue and con-trol costs led to a better than expected increase in the company’s rev-enue.

Aena Internacional designed the 2011-2030 Development Master Plan for the Cali Airport. Once approved by Colombian Airport Authorities, the Master Plan will allocate investments for the expansion of the ter-minal and apron.

Stockholm Skavsta Airport (Sweden)

Aena Internacional designed the 2011-2030 Development Master Plan for the Cali Airport

TBI

Aena Internacional holds a 10% share in Airports Concessions and De-velopment Limited (ACDL), 100% owner of TBI PLC.

TBI manages the operation of the London Luton, Belfast International and Cardiff airports in the UK; Orlando Sanford in the USA; La Paz, Santa Cruz and Cochabamba in Bolivia; and Stockholm Skavsta in Sweden.

TBI also has different management contracts with five airports in the USA: Atlanta Hartsfield-Jackson, Macon Downtown, Raleigh- Durham, Burbank, and Middle Georgia Regional.

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Aena Internacional

97

In 2011 there was a strong upturn in the passenger figures at airports operated by TBI, which went from a 5% downturn in 2010 to a 7.3% increase in 2011.

The total traffic for the group reached 23.1 million passengers. Most singificant were the 8.9% increase at London Luton, the airport with the greatest number of passengers in the group, and the 36.7% of Orlando Sanford, thanks to the Allegiant Airline’s return to business.

The increase in traffic, along with cost control and investment policies, the increase in fees and the excellent operating revenue, pushed up the net profit to 24.4 million pounds, 170% more than the previous year.

TBI continued to apply cost control and investment policies and to improve its operating revenue, which allowed the company to pay out dividends to shareholders for the first time since its acquisition.

In 2011, TBI airports continued work to implement ISO 9001 quality management systems, safety and health management systems, and to obtain OHSAS 18001and ISO 14001 certifications.

CuBA

Aena Internacional continued to develop the operational consulting and training for Empresa Cubana de Aeropuertos y Servicios Aeronáu-ticos S.A. (ECASA). During 2011 the most relevant initiatives carried out involved the monitoring of handling activities and the environmen-tal management of airport facilities.

ANGOLA

In April 2011 Aena Internacional and the Empresa Nacional de Ex-ploraçao de Aeroportos e Navegaçao Aérea de Angola (ENANA) signed a contract whereby Aena Internacional will provide consulting services for the operational and commercial exploitation of the Luanda Airport.

In the areas of security and operations, activities include assistance in the identification of improvement measures, the development of pro-cedures, and the definition of levels of quality for services rendered, and in the commercial area, the creation of a commercial development plan for the airport.

Luanda Airport (Angola)

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2011 Annual report

Aena Internacional

98

OtherAena Internacional continued to provide a vehicle for the participation of Entidad Pública Empresarial Aena, and other European Air Navigation service providers, in the company ESSP (European Satellite Services Pro-vider), a European economic interest group and provider of the EGNOS GPS augmentation service.

Additionally, in 2011 we provided Air Navigation support services to Aena.

In-flight Verification Unit airplane

Aeronautical Services

IN-fLIGHT VERIfICATION uNIT

During 2011, Aena Internacional’s In-flight Verification Unit (UVV) pro-vided its verification services on a regular basis to Aena Aeropuertos and Aena Navegación Aérea.

The number of flight hours last year totalled 800, spread over 298 flights. Also,183 calibrations were performed, exceeding the initial ob-jective of 750 hours.

Also during 2011 different commercial actions were started to provide services to customers outside the Aena group in Romania and Mo-rocco.

In addition, in October 2011 a contract was signed with TATS, a joint venture between Indra and DFS, whereby Aena Internacional will pro-vide in-flight verification services to those airports where TATS provides communications, navigation and surveillance services.

The In-flight Verification Unit flew 800 hours spread over 298 flights and did 183 calibrations, exceeding the initial

objective of 750 hours.

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1. Financial results

1.1. CONSOLIDATED PROfIT/LOSS

Operating income for 2011 increased 13.1%, reaching 3.501 billion euros, caused by traffic growth (increased number of passengers (6%), aircrafts (0.9%) and cargo (2.9%) and an increase in airport charges of 10.9%, offset by a 7.8% decrease of the Air Navigation route charg-es. The greatest contributions to the consolidated operating revenues came from the parent company Aena, 56.4%, followed by the parent company Aena Aeropuertos S.A., which contributed 42.6%.

Operating costs increased 3.74% with respect to 2010, mainly due to the increase in depreciations caused by increased investment funding (see Section 6.2.1 of this report), offset by a decreased volume of addi-tional fixed assets and reduced staff expenses, derived from the imple-mentation of the extensive structural reform in Air Navigation services, explained in the Section 7.2 of this report, as well as of other operating

Consolidated management report

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expense components due to the implementation of cost control meas-ures included in the 2010-2013 austerity plan (see Section 8.1 of this report). All of this is reflected in a positive operating income of 323.4 million euros in 2011, compared to 31.1 million euros in 2010.

The negative financial results increased during 2011 to reach 380 mil-lion euros due to increased debt and increased applicable interest rates.

Once the positive effect of the corporate tax is considered, the annual consolidated profit/loss attributable to the public parent company rep-resents a loss of 26.6 million euros compared to 145.1 million in 2010.

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1.2. fINANCIAL AND ECONOMIC RATIOS

The principal financial and economic ratios of Grupo Aena are the fol-lowing:

Ratios 2011 2010SOLVENCy RATIOS

R. Long-term debt: Lt Debt /Equity

3.72 3.73

PROfITABILITy RATIOS EBITDA Margin 39.47% 30.15%

Operating Margin: Operating income/Sales

10.00% 1.05%

Economic Profitability: Operating profit/Total Assets

1.75% 0.17%

2. Business Trends

2.1. AIRPORT BuSINESS

In 2011, airports in Spain recorded almost 204.4 million passengers (6% more than in 2010), operated more than 2.1 million flights (0.9% more) and transported more than 672,000 tons of freight (2.9% more).

These numbers reflect an increase in passengers, operations and car-go, although moderating the growth of the latter in respect to the previous year. Therefore, business recovery consolidated after several years of decline.

2.1.1. Passengers

A total of 204.4 million passengers used Aena network facilities during 2011, which represents a 6% increase compared to 2010. Of all these passengers, 203.2 million flew on commercial flights (6%). Also, al-most 2 of 3 passengers (127 million) took international flights (10.4%) and 76.2 million travelled on domestic flights (-0.6%).

Among the foremost airports in terms of passenger traffic, Madrid-Barajas is still the network’s largest, with 49.7 million passengers, which represents a slight -0.4% decrease from 2010. It is followed by Barcelona-El Prat, with 34.4 million passengers (17.8%); Palma de Mallorca, with 22.7 million (7.6%); Malaga-Costa del Sol, with 12.8 million (6.3%); Gran Canaria, with 10.5 million (11.1%); and Alicante, with 9.9 million (5.7%).

The largest growth percentages were those of the Algeciras Heliport with an increase of more than 126.7%, along with Ceuta Heliport (56.8%) and the airports of Madrid-Cuatro Vientos (44.7%), Zaragoza (24%) and Santander (21.4%).

During 2011, international passenger traffic increased by as much as 10.4% throughout the network, with noteworthy increases at the air-ports of San Sebastian (212.6%), Burgos (90.2%), Melilla (66.7%), Cordoba (34%) and Fuerteventura (26,1%).

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2.1.2. Aircraft

During 2011, the airports carried out a total of 2.1 million operations, which entails a 0.9% increase in the number of operations from 2010. Of all of these movements, 1.9 million involved commercial flights (2.6%), of which almost 900,000 were domestic (-2.5%) and 973,000 were international flights (7.7%). With regard to the type of flight, 1.7 million were scheduled flights and approximately 180,000 were charter flights (-0.6%).

Madrid-Barajas Airport continued to be the network’s largest in terms of traffic, with more than 429,000 flights (-1.0%), followed by Bar-celona-El Prat, with just over 303,000 operations (9.1%); Palma de Mallorca, with over 180,000 (3.2%); Gran Canaria, with more than 111,000 (7.9%); Malaga, with more than 107,000 flights (1.7%) and Alicante with almost 76,000 (1.5%).

The airports with the most notable percentage growth in operations were those of the Algeciras Heliport, standing out with a 96.7% in-crease (approximately 2,600 operations), along with Ceuta Heliport (43.9% and almost 5,100 operations) and the airports of Jerez de la Frontera, 24.9% (42,000), Fuerteventura, 13% (almost 45,000) and El Hierro, 12.8% (4,700).

With regard to the number of international operations, significant growth was noted at the Airports of La Gomera (700%), Madrid Cua-tro Vientos (433.3%), San Sebastian (118.6%) and Burgos (39.2%); most of these operations either originated in or were to a European airport.

2.1.3. Cargo

Nearly 672,000 tons of cargo was transported during 2011, 2.9% more than in the previous year. The international cargo transported amounted to just over 525,000 tons (4.9%) and almost 147,000 tons of domestic cargo (-3.5%).

By airports, Madrid-Barajas remained in first place, with more than 393,000 tons (5.1%). It was followed by Barcelona-El Prat with almost 97,000 tons (-7.4%); Zaragoza, with 48,600 tons (14.3%); Vitoria, with almost 34,700 tons (24%) and Gran Canaria, with approximately 23,700 tons (-3.5%).

2.2. AIR NAVIGATION

The total number of flights (flight being understood as the movement of an aircraft in a route between departure and destination airports) operated by Air Navigation in Spain during 2011 was 1.95 million, while in 2010 it was 1.89 million, representing a positive variation of 3.3%.

According to Eurocontrol data, air traffic in terms of number of flights experienced an increase of 3.4% in the Mainland Flight Information Region (FIR), and 7.6% in the Canary Islands FIR.

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3. Business lines

3.1. AIR CARGO CENTERS

The group’s company Centros Logísticos Aeroportuarios, S.A. (CLASA) is in charge of building, managing and promoting cargo centers, in addition to conducting activities related to them, particularly at Aena network airports.

At the end of 2011 the administrative concessions that Aena granted to CLASA comprised the modular cargo area at Madrid-Barajas Air-port, the air cargo area at Barcelona Airport, plot 1.2 of Zaragoza Air-port, two plots for logistics operations at Bilbao Airport, two plots of developed land at Vitoria Airport, a plot of developed land at Palma de Mallorca Airport and the air cargo area at Valencia Airport.

The CLASA profit for 2011 was positive, with a before-tax profit of 6,024,000 euros. Net revenues amounted to EUR 24,356,082, 95% of the revenue, corresponding to income from leasing their own facilities (73%) and income for developed land tax (27%).

The use of the office buildings at the air cargo centers can be broken down as follows:

Air cargo center WarehousesNo. of clients

Surface area of plot m2

Surface area of building m2

Madrid-BarajasWarehouses leased 4 62,630 34,848

Warehouses assigned 34 209,783 114,768

BarcelonaWarehouses leased 3 50,819 27,234


ValenciaWarehouses leased 5+PIF 20,099 9,367


387,461 215,167

In turn, the distribution and use of the general services central build-ings is the following:

Central building Premises Total m2

Surface area

leased m2

Surface area

leased % Leased

Avail-able

No. of clients

Madrid-Barajas

Offices 15,210 10,107 66,45 117 80 102

Ware-houses

1,547 1,312 84,81 5 3 5

Barcelona

Offices 9,392 5,885 62,66 92 45 92

Ware-houses

710 597 84,05 2 1 2

Valencia Offices 1,544 962 62,31 20 23 13

28,403 18,863 66,41 236 152 214

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3.2. INTERNATIONAL

Internationally, it is important to highlight visits and meetings with for-eign delegations at our airports, such as the President of the ICAO; the ICAO Regional Director for North America, Central America and the Caribbean; Transport Ministers of the Russian Federation, Portugal and Vietnam; a delegation of European Parliament members headed by Magdalena Álvarez; as well as several European airports and from other continents.

Additionally, during 2011, Aena Chairman Juan Ignacio Lema con-tinued to actively participate in meetings as a member of the World Airport Council, ACI Governing Board and the Director of Spanish Air-ports as a member of the European Board of ACI EUROPE.

In the sphere of the Directorate of Air Navigation the following activi-ties are most noteworthy:

SESAR

In 2011 the launch of the SESAR Program, as well as the parent com-pany Aena’s participation in it, was consolidated.

• Aena effectively participated in the SJU Verification and Valida-tion strategy and internally approved the set of activities for SESAR validations to be carried out at Aena facilities within the next two years, included in the SESAR Releases 1 and 2.

• Likewise, partnership agreements were signed with CRIDA and INECO as Aena affiliate companies, and the service provider NAV Portugal was incorporated as Aena’s associated company by virtue of an “Investigation subcontract” signed in November 2011.

OTHER INTERNATIONAL ENDEAVORS

One of the objectives of Air Navigation is to increase its influence on the international stage. To this end actions were taken over the course of 2011 in the following fields:

• To boost international relations at the institutional level, high-level bilateral meetings were held with the President of the Council of ICAO, CANSO General Secretary, Director General of EUROCON-TROL, ATCA Japan, ENAV; also, high-level meetings were prepared and carried out with EC3, CECM and other CANSO groups. Like-wise, the participation of the Directorate of Air Navigation (DNA) in the Eurocontrol ANSB (Air Navigation Service Board) Committee was also promoted.

• The participation of Air Navigation in regional projects (AEFMP, OACI) was coordinated.

• Aena actively participated in all of the European work groups that establish the deployment priorities as per the European ATM Mas-ter Plan (IP1 Steering Group of the EC, Eurocontrol SCG and SJU), given its direct impact on AN’s investment plans.

• There was active participation in CANSO in order to hold an influ-ential position and defend the interests of Air Navigation.

• Coordinated proposals and offers related to international activities of strategic interest were carried out.

• In addition, the providers that manage the majority of European traffic (Aena, NATS, ENAV, DSNA, DFS and NORACON) and par-ticipate in the SESAR program development phase within the so-

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called A6 group, continued to collaborate on SJU work program activities (SESAR Joint Undertaking), extending their collaboration to the activities of SESAR program deployment. Said collaboration represents a strategic element for the organization.

3.2.1. AENA DESARROLLO INTERNACIONAL

During 2011, Aena Internacional continued to actively participate, un-der various structures, in airport management in Latin America (Mexi-co, Colombia and Bolivia), EEC (United Kingdom and Sweden) and the United States of America. It also presented an offer for the concession of three airports in Brazil: Guarulhos/São Paulo International Airport (GRU), Viracopos/Campinas/São Paulo (VCP) International Airport and Brasilia/Brasilia (BSB) International Airport.

MExICO

Aena’s holding in Aena Internacional in the Grupo Aeroportuario del Pacífico (GAP), which operates 12 airports in Mexico, is administered through the company Aeropuertos Mexicanos del Pacífico (AMP).

Aena Internacional Consultancy

The scheduled Technology Transfer Plan was also developed, with spe-cial attention to training in airport systems and support for the GAP technical departments (diagnosis of wildlife control situations, per-ceived quality control, methodology for traffic forecasts, etc.).

COLOMBIA

Aena Internacional has an interest, as operating partner, in the airports of Cartagena de Indias, Barranquilla and Cali, with respective holdings of 38%, 40% and 33% in the companies that manage them Sacsa (Sociedad Aeroportuaria de la Costa S.A. in Cartagena de Indias), Acsa (Aeropuertos del Caribe S.A. in Barranquilla) and Sociedad Aerocali S.A. in Cali.

TBI

Aena International has an ownership interest in TBI P.L.C through Air-ports Concessions and Development Limited (ACDL), the sole owner of this company.

Either directly or through concessions TBI operates the airports of Lu-ton, Belfast and Cardiff in the United Kingdom; Orland Sanford in the United States; La Paz, Santa Cruz and Cochabamba in Bolivia and Skavsta in Sweden. It also has various operating and management contracts in the United States.

Aena Internacional has a 10% stake in ACDL.

TBI has continued to apply an investment control policy, mainly allocat-ing resources to maintenance operations

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3.3. AIR NAVIGATION

Aena’s commitment is to achieve the highest quality levels in the provi-sion of service by continuously improvement the efficiency of services and the system. In the field of operations, the services provided are: airspace organization and management, capacity/demand control, air traffic control and aeronautical information for air navigation.

In order to increase efficacy, its aim is to reduce delays caused by the Spanish air traffic management system, improve performance with re-spect to the number of operations during busy periods and times, in addition to offering the possibility of selecting preferred routes and optimizing the management of traffic capacity and flow by meeting users’ real-time operating requirements.

3.3.1. Technological development and technical operation

In the area of technical development and operations of infrastructures, we seek to appropriately provide the facilities and technical means to guarantee optimal support of aircraft operations with regard to the availability, operation and maintenance of the technical means and facilities of air navigation system.

The strategic changes addressed in technical development and opera-tions are as follows:

• To optimize the processes of planning, sizing and deploying air navigation infrastructures and systems to meet operational re-quirements, productivity and profitability criteria, synergies and opportunities for improvements and overall interoperability.

In general, for all the tasks related to technological development, de-ployment and technical operations of infrastructures, the following ac-tions are executed in concert with the Directorate of Operations:

• Definition of operational requirements,

• Validation of operations (only for the ATM automation system), and

• Launching operations.

The most relevant actions carried out in the area of technological de-velopment and technical operations are listed below, grouped into key areas:

Integrated management of aeronautical information

• Implementation of PENS (Pan European Network Service).

• Improved management and information/data sharing systems.


• Maintain SES certification (and extend it to other services when ap-plicable).

• Adaptation to the SESII framework.

• Implementation of new service models.

• Consolidation of planning services and measurement and evalua-tion systems

• Improvement and maintenance of the Air Navigation Central Serv-ices (SSCCNA) buildings infrastructure.

• Implementation of an Integrated Quality, Safety and Environmental Management System.

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• Continuous improvement in internal processes and procedures.

• Improvement of the Information Systems Infrastructure (HW, SW, Communications).

• Development of Air Navigation economic model.

Alliances / Agreements with other providers of air navigation services

• FAB South West Spain-Portugal (FAB SW).

• Strengthen the international influence of Air Navigation.

Optimization of airspace management

• Optimization of route network and ATC grouping.

• Dynamic and flexible management of sectors.

• Introduction of precision navigation in terminal areas (TMA).

• Civil/military airspace coordination (FUA).

• Application of continuous descent procedures.

• Introduction of precision approach procedures based on GBAS.

• Complexity management.

• Adapt operations to new regulations.

• Optimize operations.

• Infrastructure and Navigation Aids and Air Traffic Control.

Evolution of the CNS Infrastructure

• Data Link- Introduction of data-link based services.

• Reduction of air-ground voice communication bandwidth (8.33) be-low FL195.

• Ground Communications Network: REDAN Evolution.

• Introduction of Voice over IP (VolP).

• Regulation and Radio broadcasting.

• Evolution of en-route and TMA surveillance.

• Evolution of the airport surveillance system.

• Streamlining of the radio navigation aid network.

Evolution of the SACTA system

• Evolution of the ATM information system.

• ATC Management at strategic level.

• ATC Management at tactical level.

• Safety Nets.

• Updating of ATM Infrastructure.

Operation of Air Navigation System

• CNS and ATM Support Infrastructure.

• Operation of CNS/ATM Systems.

Introduction of the airline hub in the ATM network

• Collaborative decision making (CDM).

• Increased capacity and use of runways.

• Improved surveillance, control and guidance in taxiways and aprons (A-SMGCS).

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Validation of operational improvements

• CNS/ATM Analysis tools.

• CNS/ATM Scenario analysis.

• Operational validation of ATM Projects.

The general strategic objectives are grouped into five strategic man-agement areas: safety; quality and the environment; infrastructures and services; economic efficiency and financial viability; and people.

4. Safety

The Strategic Infrastructure and Transport Plan (PEIT) included the re-inforcement of the safety inspection by the aeronautical authority, and of the safety controls and conditions in the airports. Likewise, it made reference to the implementation of the Aena General Safety Plan in such a manner that it would comprehensively address safety in its triple perspective:

• Operational safety and emergency planning (Safety)

• Security of persons and property (Security)

• Occupational risk prevention

Due to its relevance and integrating nature, it is noteworthy to men-tion the approval and satisfactory execution of the Aena General Safe-ty Plan, which has served to bring together under a single global and integrated focus all of the perspectives that constitute safety, as well as

allowing the solidification and coordination of all of the activities and initiatives directed toward its continuous improvement.

4.1. OPERATIONAL SAfETy AND EMERGENCy PLANNING (SAfE-Ty)

With regard to operational safety and emergency planning, measures were taken in the following fields:

Safety Management System

During 2011, Aena completed the implementation of the Safety Man-agement System (SMS) at nine airports (Santander, Madrid-Cuatro Vi-entos, El Hierro, Murcia-San Javier, Valladolid, Salamanca, Albacete, León and Badajoz) and 2 heliports (Ceuta and Algeciras), which were pending completion. Therefore, the SMS is already implemented in all of the airports of the Aena Aeropuertos network.

Also, as part of continuous improvement of the SMS, internal monitor-ing was carried out in 23 airports where the SMS was already imple-mented: Fuerteventura, Menorca, Tenerife North, Girona-Costa Brava, Jerez, Santiago, Seville, Almeria, La Palma, FGL Granada-Jaén, Asturias, A Coruña, Vigo, Reus, Logroño-Agoncillo, Vitoria, Melilla, San Sebastián, Pamplona, Burgos, Sabadell, Madrid-Cuatro Vientos and Córdoba.

Process Of Certifying Aena Network Airports

With regards to the Airport Certification Plan, during 2011 the Ibiza Airport obtained said certificate in addition to the airports that ob-tained it in 2010 (Madrid-Barajas Airport and Algeciras Heliport).

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During 2011, the processes involving the Jerez Airport and Barcelona-El Prat Airport continued, while a request was submitted to AESA to initiate the certification process for the airports of La Gomera, FGL Granada-Jaén, Málaga-Costa del Sol, Palma de Mallorca, Sabadell and Huesca-Pirineos.

Audits by the European Commission and the Spanish State Agency for Air Safety (AESA)

The European Commission audited the Alicante Airport during Octo-ber, with a favorable result.

Also, the European Commission and AESA visited the Madrid-Barajas and Valencia airports to carry out trials for analysis and new regulatory proposals with regards to airport security.

The Spanish Aviation Safety Agency (AESA) carried out a total of 31 airport safety related actions, 9 of which were audits and 22 were air-port safety inspections, in different airports of the network: Albacete, Alicante, Almeria, Barcelona-El Prat, Bilbao, Burgos, Madrid-Cuatro Vientos, El Hierro, Fuerteventura, Girona-Costa Brava, Gran Canaria, FGL Granada-Jaén, Ibiza, Lanzarote, Madrid-Barajas on two occasions, Malaga-Costa del Sol, Melilla, Menorca, Murcia-San Javier, Palma de Mallorca, San Sebastian, Santander, Santiago, Seville, Tenerife North, Tenerife South, Valencia, Valladolid, Vigo and Vitoria.

Also, AESA carried out inspections of the airport security facilities be-fore the opening of the new Terminals in Alicante, La Palma and San-tiago.

In addition, inspections were carried out to verify compliance with the National Security Program in 24 airports: Alicante, Almería, Bilbao, Burgos, El Hierro, Fuerteventura, Girona-Costa Brava, Gran Canaria, Jerez, La Gomera, La Palma, León, Madrid-Barajas, Malaga-Costa del Sol, Pamplona, Reus, Salamanca, Santander, Santiago, Tenerife North, Tenerife South, Madrid-Torrejón and Valladolid.

Also, unscheduled actions were carried out in different airports in order to inspect new facilities with site visits, operating needs, development and implementation of improvement measures, carrying out trials, implementation of corrective measures and optimizing the resources dedicated to providing security services in the airports.

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4.2. SECuRITy Of PERSONS AND PROPERTy (SECuRITy)

With regard to the security of persons and property (Security), the ac-tions taken were as follows:

Investments in security equipment

With regards to security equipment, in 2011 Aena continued investing with great effort to supply new equipment and security systems to all of the network’s airports in accordance with current regulations, both for new infrastructures as well as for the scheduled replacements of security equipment.

In total 109 new walkthrough metal detectors, 11 metal detectors for shoes, 44 conventional x-ray devices, 7 Explosives Detections Systems (EDS) and 12 Explosives Trace detection devices were installed.

The principal actions that stand out are the implementations of the equipment in the new terminals in Alicante, La Palma and Santiago, as well as the expansion of the terminal and new luggage building at the Fuerteventura Airport.

With regard to the use of new technology, in 2011 Aena started to use the explosives trace detection (ETD) equipment. This equipment makes it easier for persons that use wheelchairs to go through security controls and also allows security to be reinforced in certain flights and it facilitates the inspection of unclaimed luggage.

Following the progressive deployment of the Airport Security Manage-ment System (GSA), the implementations were carried out in the Air-

ports of Santander, Jerez, Alicante, La Palma, A Coruña, Santiago and Reus, allowing them to have an access control security system and Closed Circuit TV (CCTV), property of Aena Aeropuertos and standard-ized for the entire network.

Private Security Services

As required by law, follow-up and analysis work was done on the ev-olution of the private security records in addition to a follow-up of the records management control, both from an economic as well as from a quality standpoint, adjusting the standard values of the distinct indicators established in the technical bidding specifications for each airport’s security services, in order to attain and perform the service in a process of continuous improvement, as well as to improve the prepa-ration of future bids.

The following actions stand out compared to previous years:

• Private security services were contracted for the Ceuta Heliport and the Burgos Airport.

• Two new security services were implemented in Madrid-Barajas: the “Fast Track” service that allows certain passengers to clear secu-rity faster, and the “Vuelos USA” service, in which extreme security measures are taken for flights to the United States of America.

• The training process of each one of the private security companies contracted by Aena Aeropuertos was analyzed, reviewing the train-ing content and the records generated during the training process for each one of the assigned security staff in the airports.

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Airport security training

In order to meet the training requirements in terms of airport security established in the Spanish National Training Plan, it was necessary dur-ing 2011 to provide training to the Aena Aeropuertos staff through the completion of three classroom courses on airport security.

The training provided during these courses was offered to the Aena Aeropuertos staff with airport security responsibilities upon request of the persons responsible for the safety of each airport, such as airport security managers, directors or service executives.

The training corresponding to the initial advanced security course in airport security was carried out in April, while in October training was given to the two groups corresponding to the airport security update.

In addition, online training was provided to all of the employees of Aena Aeropuertos who did not require specific training in airport secu-rity, and work was done to update those courses.

During 2011, the first notification of the online Airport Security Up-date course was carried out in order to comply with the regulatory requirement to receive periodic update training in airport security.

4.3. OCCuPATIONAL RISK PREVENTION

Among the most noteworthy actions taken in the area of occupational risk prevention was the attainment of an overall incident rate at Aena (the number of accidents per thousand workers) of 6.63, which entails a significant (26.4%) decrease from 2010.

Likewise, the objectives set out in the 2011 Operation Plan regarding the number of risk assessments and medical check-ups were satisfied as well.

53,780 classroom hours of occupational risk prevention training was given at Aena for members of both unions, which entails a 61.3% increase from 2010.

5. Quality and the Environment

5.1. QuALITy

In the area of quality, the following results were obtained in 2011:

• Aena’s corporate units satisfactorily passed the first audit for renew-ing the Quality Management System pursuant to these standards. Currently, 42 airports and one heliport boast this certification up-dated to the 2008 standards, and Air Navigation (Central Services and Regional Directorates) obtained the certification of the Inte-grated System for Quality, Environmental and Safety Management (physical and operational).

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• On the subject of quality, environment and management excel-lence training, courses were provided to the staff of the Aena, Aena Aeropuertos S.A. and Air Navigation corporate units. For this, Aena mainly counted on the support and collaboration of AENOR, the Club for Excellence in Management, the Spanish Quality As-sociation (AEC) and the Forum for Ethical Business Management (FORÉTICA).

• With respect to using the management framework of the European Foundation for Quality Management (EFQM), during 2011, Aena’s self-assessment system was completely changed, as a result creat-ing a “simplified” and “complete” self-assessment model, design-ing new forms and data results registries, updating their application in Aena to the EFQM 2010 model and preparing a self question-naire, that was approved by the Club for Excellence in Manage-ment and distributed to the entire organization. Four complete self-assessments of the Airports of Madrid-Barajas, Girona-Costa Brava, Murcia San Javier and Jerez and one partial self-assessment of the area staff of the European Model at the Asturias Airport, were car-ried out.

• The Lanzarote Airport obtained the 300+ Seal of European Excel-lence from the Club for Excellence in Management.

5.1.1. Corporate Social Responsibility (CR)

After the Board of Directors of Aena approved the corporate social responsibility (CR) policy and strategy, a specific office was created this November aimed at deploying Aena’s policy and strategy in this matter

(CR). During 2011, Aena continued with the CR activities based on the results obtained in 2010.

5.1.2. R&D

In the area of R&D management, the Aena Group places additional focus on research, development and innovation, and directs these activities toward the sustainable development of the organization by continuously searching for greater efficiency in processes, products and services, enforcing the corporate social responsibility and the or-ganization’s commitment to its stakeholders and society, the end user to whom it offers its services.

These activities are monitored annually through periodic reports that analyze their level of execution and development, both for upper man-agement as well as for the Ministries of Public Works, Science and Innovation, and currently for the Ministry of Economy and Competi-tiveness.

Aena, through the Ministry of Public Works, collaborated during the last quarter of 2011 with the Ministry of Science and Innovation, in order to internally coordinate the activities necessary to respond to the Government’s expectations, included in the “Innovative Public Procure-ment” development plan.

During 2011, activities aimed to improve the instruments for monitor-ing and assessing the results of the R&D activities continued by analyz-ing the results in accordance with the series of indicators established to assess the level of compliance with the R&D activity’s objectives, carry-

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ing out, as in previous years, a new depuration thereof and analyzing trends that allow review and, as the case may be, update of the objec-tives of the “Technological and Innovation Management Strategy.”

Other actions taken in innovation management were:

• Coordination of the participation of Aena and Aena Aeropuertos in the Third Ibero-American Air Transport Conference of the Ibero-American Network of Research of the Air Transport (RIDITA III).

• Aena’s participation in the “European Business Awards” to which it presented the Benchmark ATM Center for Research, Development and Innovation (CRIDA).

Aena’s focus on new technologies and innovation materialized in nu-merous projects, among which the following are most noteworthy, by area:

• Air Navigation: the SESAR program for the development and im-plementation of the Single European Sky concept, the EGNOS and GALILEO projects for the improvement of satellite navigation and the SACTA program for the automation of air traffic systems.

• Other areas: the Satellite Ortho-imaging Airport Information System (SAOS), the projects geared toward streamlining energy consump-tion and using renewable energies in the framework of energy effi-ciency, the projects designed to improve the security of persons and facilities through innovative information technologies or plans that facilitate information and special services to persons with reduced mobility (PRM).

• Benchmark ATM R&D center (CRIDA), created for the purpose of analyzing and evaluating concepts, procedures and systems, so that they may be introduced as instruments to provide air traffic services.

•

5.2. ENVIRONMENT

During the year 2011 the following actions were undertaken in rela-tion to environmental protection, a strategic objective of Aena that is integrated at all operational levels:

5.2.1. Environmental certification

With respect to environmental certification in accordance with the UNE-EN ISO 14001:2004 standards, all Aena network airports are certified, as are all the buildings of Aena Central Services and the Directorate of Air Navigation within their integrated management system.

5.2.2. Sound insulation plans

During 2011, Aena undertook various actions aimed at soundproofing areas near airports. 1,022 homes were soundproofed.

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5.2.3. Assessment of the environmental impact of projects and strategic environmental assessment of planning tools

During 2011, the environmental impact statement (EIS) was obtained for the Girona-Costa Brava Airport expansion project, as well as the en-vironmental resolutions for the infrastructure projects in the Alicante, Gran Canaria, Lanzarote, El Hierro, Seville and Tenerife North airports.

Likewise, more than 150 airport infrastructure and air navigation aid projects were reviewed, analyzing the characteristics of the action and applicable legal framework, advising whether it is necessary to submit the referred projects to any type of procedure regarding the environ-mental impact evaluation and, as the case may be, indicate the most appropriate procedure.

With regard to the strategic environmental assessment, the environ-mental reports were drafted for the master plans of the airports of Córdoba and Son Bonet; the environmental assessment of the master plans of the airports of Alicante, Fuerteventura, El Hierro, La Palma, San Sebastian and Tenerife North continued and the environmental as-sessments of the proposed revisions of the master plans for A Coruña, Bilbao and Gran Canaria were initiated.

5.2.4. Sound and air assessments

Pursuant to Law 5/2010, a public notice was issued for the sound ease-ments delimiting proposal and associated Action Plan for the airports of Alicante, Gran Canaria, Palma de Mallorca, Tenerife North and Se-ville.

Likewise, the documentation corresponding to the acoustic aeronauti-cal easements for the airports of Bilbao, Ibiza, Malaga-Costa del Sol and Valencia was prepared, the public notice for which will be issued shortly.

Over the course of 2011, the development and implementation of a Corporate System to Monitor Noise in Flight Paths (SCMRS) for the airports of Alicante and Malaga-Costa del Sol continued and the Sys-tem to Monitor Noise in the Airport of Palma de Mallorca (SIRPA) was replaced and improved, with a total of 24 sound meters installed around those airports.

In addition, as per Royal Decree 1257/2003, in June 2011 the resolu-tion of the State Agency for Air Safety was published, which intro-duced operating restrictions in the Airport of Barcelona-El Prat, fol-lowing the procedure of “Balanced approach” adopted by the ICAO that regulates a series of procedures allowing for noise reduction around the airport in question.

With regard to the air assessments, 2011 was a milestone for emis-sions assessments associated with airport activity, which has a global effect on the atmosphere; carbon footprints (CO2 emissions) were calculated for the Madrid-Barajas, Barcelona-El Prat and Lanzarote airports in order to obtain the Airport Carbon Accreditation (ACA). Said accreditation is the standard used by European Union airports to certify their carbon emission management efforts, allowing them to obtain public recognition in this field. The carbon footprints of said airports were verified by the Spanish Association of Standardization and Certification (AENOR), pursuant to the UNE ISO 14064 standard in order to obtain the participation certificates corresponding to Level

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1 (mapping), in the case of Lanzarote and Barcelona-El Prat, and to Level 2 (reduction) in the case of Madrid-Barajas, pursuant to the re-quirements of the ACA program.

With regard to local air quality assessments, an air contamination characterization study was done in 2011 at the Ibiza airport, and dif-ferent air quality simulations were carried out at the Palma de Mal-lorca airport in order to compare the data obtained with the air quality readings taken by the airport itself.

5.2.5. Characterization and management of soil

During 2011, soil quality preservation work initiated in previous years at the Aena Aeropuertos network of airports was continued.

With the completion of the characterization studies, each airport is currently equipped with a network of piezometers allowing periodic control and monitoring to prevent future contamination.

Likewise, in 2011, continuing with the work of previous years, further steps were taken to decontaminate soil at Palma de Mallorca Airport, with up to 95% of the subsurface hydrocarbon supernatant from the old CLH airport facilities being eliminated, the location of which is the current parking lot for the airport.

In the same manner, soil and water characterization studies were con-ducted for the plots where new fuel facilities were to be built, in order to establish an environmental baseline and determine the soil makeup quality for new installations.

In this sense, the responsible parties at each airport are carrying out follow-up and control actions on the concession lots, especially in fuel facilities, in order to avoid cross-contamination that could affect the soil of Aena Aeropuertos.

5.2.6. Renewable energy

In 2011, the following actions were carried out:

• Review of the technical tender specifications for the concession of a solar energy plant in the Lanzarote Airport, where a facility with up to 2 MW of nominal power will be deployed. An economic viability study was also carried out as to the convenience of proposing the concession contract.

• The project that was the objective of Contract DMA 352/2011 “So-lar energy plant for the ACC Canary Islands” began. This project will describe the technology and most appropriate solar energy solutions to be deployed on top of the car parks at ACC Canary Islands.

• Feasibility study for the solar facility connection at the Madrid - Cu-atro Vientos Airport.

• Study on PPT execution for a generator control system from re-newable sources in the network of Aena Aeropuertos. This study will center on the management of energy data from each of the renewable energy sources that we currently have operating in the airports.

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5.2.7. Energy efficiency

During 2011 energy studies of the airport terminal buildings of Bilbao, Córdoba, Fuerteventura, Menorca, Pamplona, Reus, Santander and Seville were carried out.

Studies were also conducted on the technical blocks of the Fuerteven-tura, Córdoba and Zaragoza airports. In the same manner, an energy study was carried out on the following buildings: multiservice, power station and Firefighting Service (FFS) of the Reus Airport.

Plans and actions to improve the use of energy were carried out in the airports that had energy studies done on them the previous year. The following actions stand out: replacement of inefficient refrigeration equipment as well as avoiding prohibited refrigerants; replacement of boilers for those of the more efficient condensation type, powered by natural gas; improved lighting systems, especially the replacement of lamps for others that are more efficient and the installation and regulation of motion detectors in various areas; updating of the facili-ties management system; regulation of the set point temperatures of climate control facilities.

6. Infrastructures

6.1. INfRASTRuCTuRE PLANNING

During 2011 approval was obtained for the Córdoba and Son Bonet master plans and the review and updating process continued in the airports of the Aena network, with the development of proposals for

new master plans for the airports of La Coruña, Almeria, Asturias, Gran Canaria, Huesca-Pirineos, La Gomera, Logroño, Melilla, Zaragoza and the development of a planning study proposal for the Valladolid Airport.

Updating of the medium and long term traffic forecast updates con-tinued to be carried out at all of the airports of the Aena network. They are intended to determine the traffic of passengers and airplanes, and their annual variations, as well as their nature, domestic or inter-national, the new companies that operate them and other necessary parameters to characterize air traffic. This traffic forecast information is fundamental for carrying out follow-ups of the updates contained in the master plans, based on the comparison and analysis of the pa-rameters of supply/demand, such as for prioritizing investments and budget estimates.

With regard to the special plans, in 2011, the definitive approval was acquired for the special plans of the Almeria, la Palma and Seville air-ports; the provisional approval of the Malaga-costa del Sol and Pam-plona airports; and the urban application process of the special plans for the airports of Ibiza, Federico García Lorca Granada-Jaén, Menorca, Santander, Santiago, Valencia, Vigo and special plan for airport protec-tion of Barcelona-El Prat. Likewise, the formulation of special plans continued, once the new master plans are approved, in this case with the development of the proposed special plans for the Córdoba and Son Bonet Airports.

Furthermore, there was continued collaboration with the many public administrations for the final approval of the remaining special airport plans currently being processed.

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Likewise, and to obtain the territorial integration of the airport in its environment, they have continued developing the numerous urban re-ports requested by the central government as well as by the territorial and local governments, all the while collaborating with the General Directorate of Civil Aviation in their reports on urban and territorial planning.

They have also developed and approved for the Madrid City Council, the development projects: 4th Modification to the Detail Study of the Cargo Center and its revised text, Storage-Warehouse for Consumable Products Aboard APM IB and for the technological Platform of Experi-mentation with Microalgae; all of them related to the Madrid-Barajas airport.

During 2011 aviation easement proposals were developed for the air-ports of La Coruña, Córdoba, Santiago, Barcelona, Almería, Jerez, Lo-groño, Menorca and for the Randa Transmitter and Receiver Center, the Soller Communications Center, NDB Andratx, NDB Porto Colom, VOR/DME Capdepera, VOR/DME Pollenca, VOR/DME LLucmajor, VOR/DME_CMA Calamocha (Teruel), Radar-LEAS_C.Emisores_c.Recep._As Pontes, VOR/DME-BGR_BEGUR (Girona), VOR/DME_VTB (La Guardia_Toledo), Radioenlaces Gran Canaria, VOR/DME and NDB_CJN_Caste-jón (Cuenca), VOR/DME_YES_Yeste (Albacete), VOR/DME_BLN_ and NDB_BAI_Linares (Jaén), VOR/DME_ DGO_Hervías (La Rioja), NDB_TON_Torralba de Aragón (Huesca) and NDB_SEO_Ribera D’Urgellet (Lérida).

Also, upon request of the DGAC, multiple feasibility reports were drawn up for the urban developments in areas affected by aviation easements.

A new module was developed and implemented within the Geograph-ical Information System for Airport Resources (SIGRA) in the Barcelona-El Prat, Madrid-Barajas and Málaga-Costa del Sol airports, as was an environmental module in the Barcelona-El Prat and Palma airports and a commercial module in the Barcelona-El Prat Airport.

Cartography to be able to calculate the airport and radio-electrical easements was produced for the airports of Algeciras, Ibiza, Logroño, Menorca, Seville, Palma, Son San Joan, Son Bonet and Tenerife South.

The global (v4) satellite ortho-imaging airport information system (SAOS) was put into production, which includes the Air Navigation fa-cilities, their easements and the natural spaces and cartographic prod-ucts for all of Spain.

As part of the implementation of the Airport Topographical Control Network (RCTA), actions were carried out at the airports of La Coruña, Alicante, Almería, Badajoz, Bilbao, Córdoba, Gran Canaria, Ibiza, Jerez, León, Logroño, Madrid-Barajas, Melilla, Menorca, Murcia-San Javier, Palma de Mallorca, Pamplona, Sabadell, Salamanca, San Sebastian, Santander, Seville, Son Bonet, Tenerife South, Vigo and Vitoria.

6.2. INfRASTRuCTuRES

Aena’s airport investments in 2011 amounted to 1,223.8 million eu-ros, according to payment figures, which represents the execution of 92.1% of the total budget approved for 2011, which was 1,328.8 million euros.

The firm commitment to the creation and development of airport and air navigation infrastructure ensures that Aena’s airports can continue

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growing in order to meet both the existing de-mand and the future growth that is bound to come. To this end, Aena has continued drafting projects and carrying out planned construction projects and installations, contributing to the improved quality and development of its airport and air navigation infrastructures, maintaining the highest safety standards to prevent occupa-tional risks and hazards to persons and proper-ty, ensuring compliance with the requirements contained in the environmental impact state-ments, contributing to increased earnings and ensuring its economic viability while complying with all the applicable standards and guidelines pursuant to the current legislation.

Also, the special airport plans: the Barcelona Plan (Barcelona-El Prat airport), the Plan Le-vante (airports of Alicante and Valencia) and the Malaga Plan (Malaga-Costa del Sol airport) are responsible for developing and executing the infrastructure necessary for the expansion and adaptation of its airports; therefore, dur-ing 2011, Aena continued developing and advancing in the fulfillment of established goals, contributing to the modernization and adaptation of the facilities and improving the image that customers and society in general have of these airports.

6.2.1. Principal investments carried out

The expansion and modernization actions include all airports of the Aena network, without exception.

The principal investments carried out in 2011 were the following:

TITLEAMOUNT INVESTED

(€ million)

Airfield expansion. The Plan Malaga civil works 363.42 New terminal area in Alicante Airport 308.50 New terminal area in Santiago Airport 125.84 Vehicle parking building, urban development and the Technical Block for Vigo Airport 41.45 Airfield expansion. Beacon system and electrical installations. The Malaga Plan 37.58 Adaptation and operational improvements at the terminal building of the Bilbao Airport 24.90 Aircraft parking at Santiago south area 23.46 Runway expansion. Córdoba 21.86 Vehicle parking expansion in Seville 14.95

6.2.2. Principal investments in progress

Major investments carried out in 2011 were the following:

TITLE AMOUNT INVESTED

(€ million)

Terminal building expansion at Gran Canaria Airport 124.65 Terminal building adaptation to the functional design at Ibiza Airport 59.37 Runway expansion at A Coruña Airport 59.36 Terminal building expansion at Vigo Airport 45.31

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TITLE AMOUNT INVESTED

(€ million)

Platform A remodeling (Phase II) at Palma de Mallorca Airport 19.84 Construction of parking building P-3 at Gran Canaria Airport 10.42 Airfield adaptation at Vigo Airport 9.98 Apron slabs improvement at Tenerife North 8.37 Airfield adaptation at Bilbao Airport 7.83 North/south platform expansion at Gran Canaria Airport 6.89

7. Services

7.1. AIRPORT SERVICES

7.1.1. Assistance for persons with reduced mobility (PRM)

Since July 2008 Aena Aeropuertos has offered an assistance service for

persons with reduced mobility (PRM) at all its Spanish airports, in com-pliance with Regulation (EC) 1107/2006 of the European Parliament, which safeguards everyone’s right to enjoy air transport at all European airports, regardless of their disability.

From a demand standpoint, during 2011 the service was provided 1,091,099 times throughout Aena’s network of airports, generally re-ceiving very positive ratings from PRMs. Aena’s work was recognized with various Spanish and international awards for accessibility and uni-versal assistance:

• In July 2011, the Ministry of Territorial Policy and Public Administra-tion granted Aena the Citizenship Award 2010 for Best Practices in Public Services for its services to people with reduced mobility.

• In January 2011, Aena received the Telefónica Ability Awards for “Best Public Institution.” This award is given to companies that put disabled people at the center of the value chain, the same as for any other client segment, and promote innovation to achieve new sustainable business models capable of meeting the demands of this group.

7.1.2. Modification of operating hours

During 2011 the operating hours of the Lanzarote, Murcia-San Javier, Pamplona, Santander and Vigo airports were modified.

From April 2011, the operating hours of the Lanzarote Airport were changed from 07:00 to 24:00 to (plus one hour PPR) to 07:00 to 02:00 local time, every day of the year.

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Likewise, the Airports of Santander (from March 2011), Pamplona (from April 2011) and Vigo (from November 2011) incorporated for the entire year the possibility to extend their operating hours, upon previous authorization, to 2 hours, 1 hour and 2 hours and 30 minutes (for cargo flights only), respectively.

Finally, it should be noted that from March 2011 the Murcia-San Javier Airport expanded the time slots when civil aircraft operations are al-lowed, in this manner reducing the number of time slots exclusively restricted to military operation.

7.1.3. Airport marketing

With regard to airport marketing, progress was made in one of the most important areas in this field: drawing up marketing plans.

In 2011, marketing plans were drafted for seven airports: Murcia-San Javier, Valencia, Alicante, Asturias, Santander, Tenerife North and Ten-erife South. In addition, the airport marketing unit held meetings with numerous airlines and local officials in order to propose new routes. In 2011, Aena participated in three important international forums: FITUR, Routes Europe and World Routes, and the IATA slots conferences.

The Customer Management department maintained close contact with airlines that operate in Spanish airports in order to make their work easier and resolve issues that are considered relevant to their business activity.

Finally, Aena continues contributing to the SESAR Program (Single Eu-ropean Sky ATM Research) that is currently in the development phase. Aena Aeropuertos is a member of a joint company created for the execution of said phase (SESAR Joint Undertaking) and leads the man-agement of the Airport Operations units. Aena Aeropuertos partici-pates in 18 projects out of a total of 300, mainly in the field of airport management.

7.1.4. Installation of defibrillators

The airports of the Aena Aeropuertos network (excluding Madrid-Cu-atro Vientos, Madrid-Torrejón, Córdoba, Sabadell and Son Bonet) are equipped with 270 heart rescue areas, which aim to assist passengers in case of a heart attack and offer them the best care services within their facilities. It is a national plan at the network level that Aena Aero-puertos implements in order to offer life support areas at all of its air-ports.

The coverage of the contracts includes the installation and mainte-nance of different cardiac rescue stations, as well as staff training in order to obtain the accreditation for a cardiac-protected space.

A total of 270 defibrillators were installed in 44 airports of the Aena Aeropuertos network for use by non-medical staff. More than 65 were installed in the Madrid-Barajas Airport and 46 at the Barcelona-El Prat Airport, and one at small airports such as Badajoz and Albacete.

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7.2. AIR NAVIGATION SERVICES

The air navigation services and systems, not only in Spain but also in all European Union member countries, currently form part of an ambi-tious process of change mainly prompted by their integration in the Single Sky.

This is a global initiative and includes all aspects of air navigation (institu-tional, regulatory, operational and technological), and is constituted as a ref-erence for developing the principal actions to be executed between 2010-2020 by different Spanish agencies involved in air traffic management.

In this double objective shared by all European air traffic services pro-viders (for transparency and competition), the determination must be noted with which the Ministry of Public Works has decided to carry out, through Aena, the structural reform of Air Navigation, aware of the need to agree on costs and rates.

Contrary to airport rates, which are among the lowest in the EU, Spain has become the country with the highest air navigation route rates in Europe, which was eroding the competitiveness of air transport and distancing us from fulfilling the European objectives.

Despite having the highest air navigation route rates in the European Union (€ 84.1 in 2009), revenue was insufficient to cover the totality of the Air Navigation costs, causing a negative balance in the profit and loss statement.

All these causes and considerations explain the importance and the urgent need for structural reform, which must comply with the follow-ing regulatory milestones:

• Royal decree-law, 1/2010 of February 5, regulating the provision of air traffic services, establishes the obligations of civil providers of said services and determines the working conditions for civil air traffic controllers.

• Law 5/2010, of March 17, amending Air Navigation Law 48/1960 of July 21, which regulates the provision of air traffic services, es-tablishes the obligations of civil providers of said services and deter-mines the working conditions for civil air traffic controllers.

• Law 9/2010, of April 14, regulating the provision of air traffic serv-ices, establishes the obligations of civil providers of said services and determines the working conditions for civil air traffic controllers.

• Order FOM/1681/2010, of May 19, designating the Gomera Airport as an Aerodrome Flight Information Service (AFIS) for the purposes of providing air traffic services.

• Order FOM/1841/2010, of July 5, establishing the certification re-quirements for civil providers of air traffic controller training.

• Royal Decree 931/2010, of July 23, which regulates the certifica-tion procedure for civil providers of air navigation services and their regulatory control.

• Royal Decree 1001/2010, of August 5, which establishes aviation safety rules in relation to air traffic control activity and rest require-ments for civil air traffic controllers.

• Order FOM/2376/2010, of August 10, which designates the El Hi-erro Airport as an Aerodrome Flight Information Service (AFIS) for the purposes of providing air traffic services.

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• Order FOM/2864/2010, of October 13, which designates the El Hi-erro Airport as a controlled airport and aerodrome flight informa-tion provider in order to provide air traffic services, and amends Order FOM/2376/2010 of August 10.

• Royal Decree-Law 13/2010, of December 3, on initiatives in the tax and labor areas and for deregulation to encourage investment and job creation.

• Additionally, the Second Additional Provision of this Royal Decree includes aeronautical activity in air traffic control, relative to the working hours of air traffic controllers in order to take into consid-eration their workday.

• Royal Decree 1611/2010, of December 3, provisionally giving to the Ministry of Defense the faculties of air traffic control that were as-sumed by the Public Corporation Aena.

• Royal Decree 1673/2010, of December 4, declaring a state of alert for the normalization of essential public air transport services.

• Resolution of December 16 of the Spanish Congress of Deputies ordering the publication of the authorization agreement for the ex-tension of the declared state of alert under Royal Decree 1673/2010 of December 4. And likewise, Royal Decree 1717/2010 of De-cember 17, extending the state of alert declared by Royal Decree 1673/2010 of December 4.

• Order FOM/3352/2010, of December 22, which determines the air-ports managed by the Public Corporation Aeropuertos Españoles y Navegación Aérea to select the new civil providers of air traffic control services in aerodromes.

• The year 2010 concluded with the publication in the December 29 BOE of the Order of the Ministry of Public Works that designates the first 13 Aena airports where the control tower service will be deregulated.

• Order FOM/3457/2010, of December 22, 2010 and published in the BOE on January 6, 2011 (BOE-A-2011-312), designating the Burgos Airport as an Aerodrome Flight Information Service (AFIS) for the purposes of providing air traffic services.

• Royal Decree 28/, of January 14, 2011 and published in the BOE on January 15, 2011 (BOE-A-2011-737), repealing Royal Decree 1611/2010, of December 3 and published in the BOE on December 4, 2010 (BOE-A-2010-18652), provisionally giving to the Ministry of Defense the faculties of air traffic control that were assumed by the Public Corporation Aena.

• Order FOM/214/2011, of February 11, 2011 (BOE-A-2011-2612), amending paragraph five of Annex I of Decree 1675/1972, of June 26, approving the applicable rates for the use of the air naviga-tion aid network (Eurocontrol) and amending the interest rate for default on payment of said rates (FIR Peninsula: € 77.83 and FIR Canarias: € 63.18).

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• Royal Decree 188/2011, of February 18, 2011 and published in the BOE on February 19, 2011 (BOE-A-2011-3257), amending Royal Decree 1516/2009, of October 2, regulating the European Com-munity air traffic controller license.

• Resolution of March 7, 2011 and published in the BOE on March 9, 2011 (BOE-A-2011-4372), from the Directorate-General for Em-ployment, registering and publishing the arbitration award that es-tablished the second professional collective agreement of air traf-fic controllers of the Public Corporation Aeropuertos Españoles y Navegación Aérea.

• Royal Decree 1516/2009, of October 2 and published in the BOE on October 11, 2011 (BOE-A-2011-16115), regulating the European Community air traffic controller license.

• Order FOM/3226/2011, of November 2 and published on Novem-ber 25, 2011 (BOE-A-2011-1858), which designates the Huesca-Pirineos Airport as an Aerodrome Flight Information Service (AFIS) for the purposes of providing air traffic services.

This comprehensive new plan is reflected in a new tariff framework and in tangible economic results, as it will allow for the reduction of air navi-gation route rates by 15% within a period of 2 years, as well as eliminat-ing the current deficit of the air navigation terminal charges in 2013.

The new regulations also include the requirements and obligations that are to be fulfilled and complied with by air traffic service providers operating in Spain (including Aena, which obtained its certification in December 2006), by allowing the entry of new providers of air traffic services connected to the airport.

7.2.1. Aerodrome flight Information Service (AfIS)

In 2011, and within the process of structuring air navigation services, Aena Aeropuertos continued the implementation of the aerodrome flight information service (AFIS) in compliance with the provisions of Law 9/2010 of April 14, in the following airports:

• La Gomera Airport: from July 29, 2010.

• El Hierro Airport: AFIS service from September 23, and mixed AFIS and ATC service from December 16, 2010.

• Burgos Airport from February 16, 2011.

• Huesca-Pirineos Airport, from December 15, 2011.

7.2.2. Deregulation of the aerodrome traffic control service

In early 2011, and pursuant to Order FOM/3352/2010 that determines the 13 airports for which the contracting of aerodrome air traffic civil providers shall be initiated,the public tender was launched to contract this service in the following airports, which were divided in three lots:

• Lot 1: Alicante, Valencia, Ibiza and Sabadell.

• Lot 2: Seville, Jerez, Vigo, A Coruña, Melilla and Madrid-Cuatro Vi-entos.

• Lot 3: La Palma, Fuerteventura and Lanzarote.

The public tender, which was carried out in two phases, was awarded in September 2011 to the companies FerroNats (Lots 1 and 2) and SAERCO, (Lot 3); these two companies obtained the highest techni-

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cal and financial qualifications in addition to having been Certified by AESA as Aerodrome Air Traffic Control Service Providers.

The contracts were signed in November 2011, and in the same month Aena requested DGAC (Directorate General of Civil Aviation), pursuant to the provisions of law 9/2010, to designate these new providers in their respective airports.

7.2.3. Single European Sky

The development of the Single European Sky also includes Aena’s par-ticipation in the SESAR program, the objective of which is to implement by 2020 a high performance air traffic management network with a lower environmental impact. Out of 300 total projects that compose the SESAR program, 188 were already launched, and Aena participates in 58 of them.

8. Economic efficiency and financial viability

The objectives related to the economic area and that resume the main economic and financial aspects of Aena management are the following:

• Increase revenue

• Reduce costs

• Control debt

The fundamental principle behind the financial policy of the Aena Group of companies is based on centralizing this policy at the Directo-rate of Administration and Finance so that all financial liabilities and as-sets may be contracted and managed from that directorate. The main financial risks are enumerated below:

a) Interest rate risk

In order to manage the interest rate risk, Aena aims to optimize finan-cial expenditures within the established risk limits. The Public Company does not usually undertake business transactions in currencies other than the Euro (unlike subsidiaries such as Aena Desarrollo Internac-ional and Inco), so the financial expenditure risk is concentrated in the interest rate risk in the case of the parent company, the risk variables being the three-month Euribor (used for long-term debt) and the one-month Euribor (used in loan agreements).

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Additionally, the risk value of financial expenditure is calculated with a view to the Multiannual Action Plan, and interest rate fluctuation sce-narios are established for the period under consideration.

For the 2011 and 2010 fiscal years, the Group engaged in interest rate hedging transactions.

b) Liquidity risk

The main risk variables are: limitations of finance markets, increase in projected investments, and reduction in cash-flow creation.

In order to maintain sufficient liquidity to meet financial obligations for at least twelve months, a long-term financing policy was established by entering into framework or similar agreements with organizations such as the Official Credit Institute and the European Investment Bank, in addition to securing short- and medium-term credit lines.

Risk management focuses on the detailed monitoring of the Group’s financial debt maturity calendar, as well as on the proactive manage-ment and maintenance of credit lines that enable meeting predicted liquidity needs.

Lastly, the Group systematically performs cash flow forecasts for the purpose of assessing the needs for cash equivalents. This liquidity pol-icy ensures fulfillment of acquired payment commitments without the need to resort to obtaining funds under costly conditions, which ena-bles maintaining continual liquidity.

c) Credit risk

The risk variable is the creditworthiness of the counterparty, so Aena aims to focus on minimizing the risk of default by the counterparties. The group keeps its cash and liquid assets at financial institutions with high credit ratings.

d) Exchange rate risk

The subsidiary Aena Desarrollo Internacional is subject to fluctuations in exchange rates that may affect its sales, income, equity and cash flow. Therefore, the company has a financial hedging instrument for cash flows affected by variations in exchange rates.

8.1 CONTROL MEASuRES AND COST REDuCTION

The plans put in place in 2008 to optimize and reduce costs were car-ried on in subsequent years and in 2011, leading to a savings of ap-proximately 58 million euros with respect to the budget approved in the items of other operating expenses.

The reduction applied to virtually all areas of expenditure, with special impact on the items of repair and preservation, with a savings of 20 million euros, noteworthy savings of almost 5 million euros in cleaning and 4 million euros in information technology repairs, technical sup-port (3.5 million euros), supply (6.2 million euros below budget, mainly in electricity). In other services savings reached 15 million euros, mainly due to austerity applied on items involving security (3.5 million euros) and customer service (1.5 million euros).

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The reduction was also applied to taxes (6.8 million euros) due to the civil protection tax reduction in Catalonia.

Noteworthy among the measures taken was the introduction of the concept of variable spending depending on traffic, negotiating eco-nomic conditions with service providers, policies for optimizing re-sources, postponing non-essential actions and greater control of fixed and non-fixed costs (advertisement, office supplies, transportation).

8.2. SuBSIDIZED RATES

In order to support the air transport industry and promote tourism, the government established the following discounts in airport charges:

• A 100% discount in the payment of passenger charges for airlines that in 2011 carried more passengers than in the previous year, in the group of airports from the Canary Islands, Balearic Islands, Ceuta and Melilla.

• A 50% discount in landing, passenger and security fees in those operations that recorded an increase in frequency with regard to the same seasons in the previous year, in the group of airports from the Canary Islands, Balearic Islands, Ceuta and Melilla.

• A discount of between 20% and 50% in landing, passenger and security fees in operations that suppose the opening of new routes that depart from or arrive at airports in the Canary Islands, Balearic Islands, Ceuta and Melilla.

• A 50% discount in landing and passenger fees for domestic and

international flights carried out during off-peak days of the week at all Canary Islands airports.

• A 30% discount in landing rate and passenger charges for flights that make commercial stopovers in the Canary Islands with desti-nation or origin in countries that do not belong to the European Economic Area.

These discounts on airport charges entailed 38.4 million euros less rev-enue for Aena Aeropuertos.

8.3. INCOME fROM SALES

In June, the public company Aeropuertos Españoles y Navegación Aé-rea was transformed into the state commercial company Aena Aerop-uertos S.A., with the consequent transformation of all the concession agreements to lease agreements. To this end, it was necessary that the commercial concessionaires accept the change of title and the legal regulations applicable to them. 98% of them accepted said change. With regard to agreements with companies that rejected the change, they were put to tender again and were awarded.

With regard to the commercial infrastructure development, the follow-ing noteworthy actions were taken in 2011:

• With the beginning of operations at the new terminal in the Ali-cante Airport on March 24, 2011, the commercial space increased to a total of 8,736 m2, which represented a 51% increase. Of the total surface area, 4,579 m2 was allocated to 19 retail businesses

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with a varied and up-to-date commercial space, including clothes, accessories and technology. In addition, 2,946 m2 was allocated to restaurant businesses (with 16 points of sale) that offer a variety of domestic and international brands. There is also a shared seating area. Another 7 spaces were allocated to commercial space, includ-ing currency exchange, luggage wrapping equipment, vending ma-chines, ATM machines, etc.

• In July 2011, the new terminal area at the La Palma Airport was opened. As a consequence, the commercial space in that airport saw its surface area increase by 125% to a total of 2,412 m2. The new terminal currently has 3 stores, 4 restaurants and one phar-macy. There are plans to add an additional store and open a lottery office. With regard to parking, the previous space was expanded with a parking area under the terminal building, which has 448 public parking spaces, 552 rental car spaces, 96 parking spaces for employees and that, added to the previous space, makes for a total of 2,452 parking spots. Also, currently Aena has taxi parking with 48 spaces, 45 spaces for buses and 11 for microbuses.

• In October 2011, the new terminal area at the Santiago Airport was put into operation. After its opening, the commercial area increased its surface area to a total of 2,767 m2 (a 49% increase), of which 363 m2 correspond to 6 stores, 310 to a duty-free store (the retail area includes multi-store activities, typical regional food store, book and press, crafts and silverware, clothes and accessories stores), and 1,785 m2 allocated to 3 restaurants. In addition, the airport has other businesses that include complimentary activities such as ATM machines, telephone booths, vending machines, internet and lug-gage plastification. It also has a parking area of 140,000 m2, which

includes 3,496 parking spaces, 10 express, 18 for buses and 44 remote.

• The opening of the C Module at the Palma de Mallorca Airport pro-vided 3,202 m2 of commercial space, distributed between a Duty-free store and 5 retail stores. With regard to restaurants, 2,454 m2 were provided, that were distributed in 4 points.

• Also, 2 concessionaires of the FBO (fixed base operators) com-menced operations at the La Palma Airport. FBO 1 was awarded in July 2011 to UTE Iberia/Gestair, while FBO 2 was awarded to Mal-lorcair S.L. and commenced its activities in June 2011.

Within the main commercial activities, 16 restaurant spaces were allo-cated in 2011 (corresponding to 32 points) and 24 spaces were allo-cated to stores (corresponding to 26 premises).

Several agreements were signed on the subject of land use development with:

• The Association of Science and Technology Parks of Spain (APTE) for the classification of certain airport land as technology parks.

• The Agency for the Innovation and Development of Andalusia, re-lated to land development at the Airports of Jerez and Seville.

• The Valencia Regional Government for management of the golf course located on Valencia Airport land.

• With regards to income, the income from sales in 2011 increased (provisional numbers) by 4.14% compared to the previous year (24.67 million euros more) reaching 620.48 million euros. Taking into

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consideration that commercial traffic increased by 6.05% in 2011, the sales revenue per commercial passenger ratio was 3.05 euros.

The sales revenue ratio compared to airport revenue in 2011 was 27.03%.

In general terms it is important to highlight the contribution, in terms of commercial revenue in the year 2011, of the network’s 7 leading airports, which accounted for 79.61% of total commercial revenue (Madrid-Barajas, 26.91%; Barcelona-El Prat, 20.13%; Malaga-Costa del Sol 7.39%; Palma de Mallorca, 7.74%; Alicante 5.60%, Tenerife South 4.60% and Gran Canaria 4.55%).

With regard to income control, the implementation of the new control system based on POS terminals (SAVIA) was initiated, with the aim of improving sales information and control. The system’s objective is to achieve better information, both regarding sales volume as well as the type of product sold. In 2011 the system was implemented in the airports of Madrid-Barajas, Alicante, Barcelona-El Prat, La Palma and Santiago.

8.4. CONTRACTS

During 2011, the total volume of goods and services awarded amount-ed to 1,005.4 million Euros, excluding taxes.

The volume of contracts centrally awarded amounted to 90.8% (912.7 million Euros) as opposed to 9.2% (92.7 million Euros) contracted by peripheral centers.

9. People

The fundamental challenge of Aena in the human resources area is to in-crease the motivation, commitment and personal development of all of its employees, and to make the organization more effective and efficient in order to satisfy the needs of the customers and to provide a quality service in the airport and aeronautical activity management area.

To this end, with people being Aena´s greatest asset, the objectives focus on the following:

• Improve the development of people.

• Increase their motivation and commitment.

• Develop the control of the human resources area management, op-timizing results.

In 2011, the most important objective was to contribute, at the level of organization and Human Resources (organizational adaptation, staff defi-nition and assignment, collective bargaining, etc.) to the development of the new airport system management model, in compliance with the provi-sions of Royal Decree-law 13/2010 of December 3, which constitutes the new legal framework for the modernization of the Spanish airport system.

The first collective bargaining agreement of the Aena Group was signed on July 14, 2011, substituting the fifth Aena collective bargaining agree-ment, and is valid until December 31, 2018. This agreement shall apply both to the staff of the public company Aena (excluding controllers) and to the staff of Aena Aeropuertos, S.A.

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9.1. STAff

The total number of employees on December 31, 2011 amounted to 13,256 and the breakdown is as follows:

• Aena: 4,568 (including corporate units of Aena and Air Navigation General Management).

• Aena Aeropuertos: 8,688 (including the corporate units of Aena Aeropuertos and Aena Aeropuertos General Management).

Over the last few years, the presence of female employees has increased, representing 33% of the staff in 2011.

For its part, the average staff age has decreased in recent years, dropping from 44 to 43 years of age.

9.2. RECRuITMENT

Main actions taken:

Job openings were posted for external recruitment for 61 permanent public employment positions (23 for university graduates and 38 for those who completed technical training) from previous years, reserved to be covered by persons with physical disability or sensory impairment with a degree of disability equal to or greater than 33%, to be as-signed to different work places.

Non-graduate job openings were posted for in-house staff for differ-ent work centers, corresponding to previous public employment and

the results thereof. In particular, total of 358 positions were recruited for and filled.

9.3. HuMAN RESOuRCES MANAGEMENT SySTEMS

The most relevant actions carried out by the management system of-fice were the following:

• Managing the process of moving over to the new state-owned com-pany: creation of job centers, new social security account codes, worker communication letters, processing the new non-active sta-tus situation for ex-officials of the Ministry of Public Works, etc., au-thorizations and cancellations for users in Contract@/Cerfifica@2. Centrally formalizing the affiliation due to becoming a part of Aena Aeropuertos S.A.

• Participation in the process of separating the companies in the cor-porate application of SAP to adapt the system for the new 2011 organizational model.

• Development and management of new employment contracts with discount/reduction possibility in Aena Aeropuertos, and other dis-counts.

• Within the scope of the 2010-2013 Austerity Plan, with regards to the objective of cost control and productivity improvement in Hu-man Resources, the following were achieved:

• Reduced the total service commission costs by 3.5% compared to 2010.

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• Achieved an absenteeism rate for 2011 of 4.77, below average for absenteeism in Spain.

• Reduced overtime hours by 10% compared to 2010 and achieved levels equal to 2002.

9.4. ORGANIZATIONAL AREA

With regard to the most relevant actions taken in Aena’s organiza-tional areas, the following are of note:

• After the effective start of the operations and obligations of Aena Aeropuertos S.A. on June 8, 2011, organizational development of the new management model was carried out. This development was carried out in two phases, on June 8 and November 1, with all necessary measures taken within the current austerity context, taking into consideration the efficiency criteria and without an ad-ditional cost increase and without a net increase in the number of structural positions.

• Aena’s Performance Management System (SGD) was consolidated as a reference system for improvement and measuring the perform-ance of Aena’s employees and managers. This system not only rep-resents a change in human resources management, but also a cul-tural change and a way to work focusing on results, which brings about greater employee commitment to Aena’s objectives.

• Aena is advancing in the development and implementation of a management control system for the principal figures and indicators of airport human resources, which permits problems to be identi-fied and analyzed, follow-up actions to be carried out and solutions that improve management to be proposed.

9.5. TRAINING

Three training units coordinated the training activity: Training Division, Professional Development Division (Air Navigation) and Executive De-velopment Division.

The total number of hours of training provided amounted to 350,000 hours. 85% of the staff assigned to these units received at least one training course (including online courses).

The expenses directly associated with the training activities of the three units added up to 2.9 million euros.

As in previous years, Aena benefited from the FTFE (Tripartite Founda-tion for On-the-Job Training) for needed training plans in 2011. The Spanish unemployment office granted Aena a subsidy of 1,043,245 euros for 2011, which was deducted from the Social Security contri-butions, and represented approximately 36% of the cost incurred in training over the year.

9.6. CORPORATE BENEfITS AND SOCIAL PROJECTS

The Corporate Benefits and Social Projects area implements a broad variety of actions related to corporate social responsibility, both in re-gard to its employees (corporate benefits) as well as to partnerships with companies that mainly work with disadvantaged groups. Note-worthy actions in 2011 were the following:

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• The social aid program was announced, with processing and valida-tion of more than 11,000 requests through the employee portal.

• In the development of the work and family life reconciliation policy, the employee service program provided support on 3,415 occasions during 2011.

• Aena continued its addictive behavior treatment and prevention program and its emotional support and health education programs. Special note is given here to Aena’s ongoing collaborative agree-ment with Proyecto Hombre to foster information, prevention and education in this field.

• During 2011 the promotion of the “Solidarity Space” Project con-tinued. This Project involves setting up concession of stands, free of charge, in the public areas of airports, by social welfare groups (NGOs, foundations and associations), so they may advertise their campaigns and share their information and missions in a busy en-vironment.

• This year numerous noteworthy contacts were made with social institutions, which resulted in a significant increase in the use of the space provided compared to the two previous years, when the project was initiated.

• As in previous years, in 2011 the so-called solidarity meetings, cul-tural meetings, and the Aena social month were also held, as was the first celebration of Universal Children’s Rights Day (November 20, 2011), with various activities being carried out in different centers.

• The Retiree Care Plan was maintained and consolidated, carrying out three new groups of retirement preparation workshops. Sup-port continued for the Aena veterans association so that retired employees may remain active, united with the airport world and sharing interests.

• Aena also maintained life and accident insurance benefits.

9.7. ENDEAVORS INVOLVING HuMAN RESOuRCES IN AIR NAVIGATION

• Approval of the second CC control under the premise of increasing productivity and constraining expenses and increasing the flexibility of collective negotiation, of work organization, the work day and time off and economic compensation.

• Improved “attendance control” on the premises of Air Navigation.

• Creation of reference and maximum work year configurations for the controllers.

• Began implementing “basic training” for technical operation and developing the content for “qualified training.”

• Designed and implemented a management procedure that would allow for improved coordination of the DRNA Human Resources divisions’ actions.

• Designed a specific procedure that would allow for continuous monitoring of the physical and mental aptitude of the employees

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registered in the “Safety Chain,” specific ICCP procedure, devel-oped and approved by AESA and pending review for the second edition.

10. Foreseeable Prospects

As indicated in paragraph 19 “Post closure events” of the report, dat-ed January 25, 2012, the Administrative Board agreed to renounce formalizing contracts related to lots I and II of the “Tender procedures for selecting partners to hold stock in the corporations in charge of managing airport service concessions for the airports of Madrid – Bara-jas and Barcelona – El Prat”.

The Council of Ministers held on March 16, 2012, approved the re-structuring and streamlining plan for the public business sector and state foundation sector, with the principal aim of establishing a sector that is more reduced, streamlined and efficient, immersed in the current context of austerity and need to control public spending. Together, the plan approved by the Government includes the closure, investment cuts or easing the liquidation of a total of eighty corporations, among them Aena Desarrollo Internacional, S.A. and Centros Logísticos Aeroportu-arios, S.A., which are 100% owned by the Company. In this sense, the managing bodies of the company plan to implement this decision

through a merger by absorption by the company Aena Aeropuertos, S.A.

In addition, and in regard to the airport services business segment, by way of Law 1/2011 of March 4, which establishes the National Pro-gram for Civil Aviation Safety and modifies Law 21/2003 of July 7 on Air Safety, a profound transformation of the regulatory framework for its income was carried out, by establishing a procedure for updating and modifying its rates, pursuant to specific transparency, consulting and supervisory procedures, which will make it possible to recover costs in the future, including an adequate profitability of the investments.

Due to the above, and after the profound structural reform applied to air navigation services during 2011 (see paragraph 8.1 of this report), the long-term perspectives of the group are satisfactory along all busi-ness lines according to growth expectations in their activities, which will permit the investment plan commissioned by the Ministry of Public Works to be carried out and to achieve the quality, security, operational and competitive objectives for Spanish air transport infrastructures, at the level needed for the socioeconomic development of the country.

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CONSOLIDATED BALANCE AS OF 31 December (EUR thousand)

ASSETS Notes 2011 2010

NON-CURRENT ASSETS:

Intangible assets: Note 5 281,696 275,192

Development expenditure 77,416 86,099

Computer software 182,630 171,334

Other intangible assets 21,650 17,759

Property, plant and equipment: Note 6 16,823,805 16,456,251

Land and buildings 11,771,120 10,996,350

Plant and other items of property, plant and equipment 3,530,728 3,341,853

Property, plant and equipment in progress construction and advances 1,521,957 2,118,048

Investment property: Note 7 86,071 88,011

Buildings 82,648 85,015

Plant 3,423 2,996

Non-current investments in associates: Note 9.1 107,557 118,856

Investments accounted for using the equity method 107,557 118,856

Non-current financial assets Note 9.2 59,721 60,958

Deferred tax assets Note 15.1 582,654 597,467

Total non-current assets 17,941,504 17,596,735

Consolidated annual statements

Consolidated annual statementsAENA ENTIDAD PúBLICA EMPRESARIAL

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CURRENT ASSETS:

Inventories Note 11 6,397 6,767

Trade and other receivables 535,256 515,856

Trade receivables for sales and services 368,472 370,681

Companies accounted for using the equity method Note 9.2 6,388 6,227

Sundry accounts receivable 7,568 556

Staff 2,704 2,366

Current tax assets Note 15.1 359 24,684

Other accounts receivable from public authorities Note 15.1 149,765 111,342

Current financial assets Note 9.3 9,958 14,642

Loans to companies 511 1,540

Other current financial assets 9,447 13,102

Current prepayments and accrued income 10,721 9,423

Cash and cash equivalents 8,512 8,617

Total Current Assets 570,844 555,305

TOTAL ASSETS 18,512,348 18,152,040

The accompanying Notes 1 to 20 are an integral part of the consolidated balance sheet as of 31 December 2011.

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LIABILITIES AND NET EQUITY Notes 2011 2010

NET EQUITY:

Shareholders' equity: Note 12 3,131,539 3,157,981

Equity 3,099,018 3,099,018

Reserves of the Parent: 28,563 180,571

Legal and bylaw reserves 451,196 451,196

Other reserves 289,249 284,144

Retained losses (711,882) (554,769)

Reserves at consolidated companies 3,905 (2,937)

Reserves at companies accounted for using the equity method 26,684 26,421

Loss for the year attributable to the Parent: (26,631) (145,092)

Consolidated loss (26,227) (145,040)

Loss attributable to minority interests (404) (52)

Valuation adjustments: (30,727) (19,577)

Hedges Note 10 (24,785) (20,258)

Translation differences of companies accounted for using the equity method Note 12 (5,942) 681

Grants, donations or gifts and legacies received Note 12 465,860 449,270

Minority interests Note 12 773 359

Total Net Equity 3,567,445 3,588,033

NON-CURRENT LIABILITIES:

Long-term provisions: Note 13.1 510,804 635,319

Provisions for long-term employee benefit obligations 248,868 417,278

Provisions for environmental costs 99,033 161,801

Other provisions 162,903 56,240

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Non-current payables: Note 14 11,655,967 11,767,503

Bank borrowings and other financial liabilities 11,636,859 11,750,592

Obligations under finance leases 2,124 2,589

Derivatives Note 10 12,381 12,072

Other financial liabilities Note 14 4,603 2,250

Deferred tax liabilities Note 15.1 202,278 220,154

Non-current accruals and deferred income 1,397 1,225

Total non-current liabilities 12,370,446 12,624,201

CURRENT LIABILITIES:

Short-term provisions Note 13.2 436,960 186,040

Current payables Note 14 1,687,069 1,323,867

Bank borrowings and other financial liabilities 961,605 520,608

Obligations under finance leases 465 441

Derivatives Note 10 23,574 18,996

Other financial liabilities 701,425 783,822

Current payables to Group companies and associates: 19,778 17,955

Payable to companies accounted for using the equity method Note 9.2 19,778 17,955

Trade and other payables 430,627 411,921

Payable to suppliers 1,485 978

Sundry accounts payable Note 9.2 297,545 254,671

Remuneration payable 33,901 32,850

Current tax liabilities - 1,466

Other accounts payable to public authorities Note 15.1 55,112 42,324

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CONSOLIDATED BALANCE AS OF 31 December 2011 (EUR thousand)


Customer advances 42,584 79,632

Current accruals and deferred income 23 23

Total current liabilities 2,574,457 1,939,806

TOTAL LIABILITIES AND NET EQUITY 18,512,348 18,152,040


CONSOLIDATED INCOME STATEMENT FOR 2011 (EUR thousand)

Notes 2011 2010

CONTINUING OPERATIONS

Revenue Note 16.a 3,234,260 2,972,401

In-house work on non-current assets Note 6 9,624 9,282

Procurements Note Note 16.b (105,798) (61,882)

Cost of raw materials and other consumables used (703) (372)

Work performed by other companies (105,095) (61,510)

Losses on impairment of raw materials and other consumables 17,851 15,625

Other operating income 14,764 13,348

Income-related grants transferred to profit or loss 3,087 2,277

Staff costs (967,211) (978,445)

Wages, salaries and similar expenses (786,940) (779,036)

Employee benefit costs Note 16.c (164,810) (183,759)

Provisions (15,461) (15,650)

Other operating expenses (1,108,908) (1,122,466)

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Notes 2011 2010

Outside services Note 16.d (903,789) (913,453)

Taxes other than income tax (135,161) (140,072)

Losses on, impairment of and change in allowances for trade receivables (29,253) (56,217)

Other current operating expenses (40,705) (12,724)

Depreciation and amortisation charge) Notes 5, 6 and 7 (964,019) (872,519)

Allocation to profit or loss of grants related to non-financial non-current assets and other grants

40,101 32,845

Excessive provisions Note 16.f 187,056 48,375

Impairment and gains or losses on disposals of non-current assets (15,537) (22,231)

Other gains or losses (3,991) 10,091

PROFIT (LOSS) FROM OPERATIONS 323,428 31,076

Finance income 2,765 4,310

From investments in equity instruments 1,912 -

From marketable securities and other financial instruments 853 4,310

Finance costs (368,070) (253,058)

On debts to third parties (397,780) (257,393)

Interest cost relating to provisions (6,335) (36,589)

Capitalisation of finance costs Notes 5 and 6 36,045 40,924

Change in fair value of financial instruments (13,003) 38

Exchange differences 101 239

Impairment and gains or losses on disposals of financial instrument - (6)

FINANCIAL LOSS Note 16.e (378,207) (248,477)

Results of associates accounted for using the equity method Note 9.1 11,954 17,897

LOSS BEFORE TAX AND INVESTEES (42,825) (199,504)

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Notes 2011 2010

Income tax Note 15.3 16,598 54,464

LOSS FOR THE YEAR FROM CONTINUING OPERATIONS (26,227) (145,040)

CONSOLIDATED LOSS FOR THE YEAR (26,227) (145,040)

Loss attributable to minority interests 404 52

LOSS ATTRIBUTABLE TO THE PARENT (26,631) (145,092)


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR 2011A) CONSOLIDATED STATEMENT OF RECOGNIZED INCOME AND EXPENSES (EUR thousand)

Notes 2011 2010

A) Loss per income statement (26,227) (145,040)

Income and expenses recognised directly in equity

Arising from cash flow hedges Note 10 (17,327) (30,154)

Grants, donations or gifts and legacies received Note 12.g 61,853 71,744

Translation differences Note 9.1 (6,623) 8,186

Tax effect (13,358) (12,477)

B) Total income and expenses recognised directly in equity 24,545 37,299

Transfers to profit or loss

Arising from cash flow hedges Note 10 12,810 (530)

Grants, donations or gifts and legacies received Note 12.g (40,102) (32,845)

Tax effect 8,187 10,015

145

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2011 Annual report


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR 2011A) CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE (EUR thousand)

Notes 2011 2010

C) Total transfers to profit or loss (19,105) (23,360)

TOTAL RECOGNISED INCOME AND EXPENSE (A + B + C) (20,787) (131,101)

Total recognised income and expense attributed to non-controlling interests 404 52

Total recognised income and expense attributed to the Parent (21,191) (131,153)

The accompanying Notes 1 to 20 are an integral part of the consolidated statement iof changes in net equity as of 31 December 2011.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR 2011B) CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY (EUR thousand )

Assigned Equity

and Assets

BylawReserves

RevaluationReserve R.D.L.

7/1996

Other Reservesof theParent

Consoli-dated

Reserves ofthe Parent

“RetainedLosses”

Reservesof FullyConsoli-dated

Compa-nies

Reserves ofCompaniesAccountedfor Using the Equity Method

Profit (Loss)for the Year

Attribut-able to

the Parent

ValuationAdjust-ments

Grants, Donations

or Giftsand Lega-

ciesReceived

MinorityInterests

Total Equity

BALANCE AT 2010 YEAR-END 3,099,018 479,917 273,417 (28,721) 33,186 (201,870) (443) 13,349 (345,860) (6,284) 422,038 13,496 3,751,243

Total recognised income and expenses - - - - - - - - (145,092) (13,293) 27,232 52 (131,101)

Dividends paid - - - - 13,196 - (1,215) (11,981) - - - - -

Other changes in net equity - (28,721) - 28,721 (24,137) - (6,889) 12,106 - - - (13,189) (32,109)

Distribution of loss (2010) - - - - (11,518) (352,899) 5,610 12,947 345,860 - - - -

BALANCE AT 2010 YEAR-END 3,099,018 451,196 273,417 - 10,727 (554,769) (2,937) 26,421 (145,092) (19,577) 449,270 359 3,588,033

Total recognised income and expenses - - - - - - - - (26,631) (11,150) 16,590 404 (20,787)

Dividends paid - - - - 15,873 - (1,112) (14,761) - - - - -

146

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR 2011B) CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY (EUR thousand )

Assigned Equity

and Assets

BylawReserves

RevaluationReserve R.D.L.

7/1996

Other Reservesof theParent

Consoli-dated

Reserves ofthe Parent

“RetainedLosses”

Reservesof FullyConsoli-dated

Compa-nies

Reserves ofCompaniesAccountedfor Using the Equity Method

Profit (Loss)for the Year

Attribut-able to

the Parent

ValuationAdjust-ments

Grants, Donations

or Giftsand Lega-

ciesReceived

MinorityInterests

Total Equity

Other changes in equity - - - - 1,264 - 1,798 (2,873) - - - 10 199

Distribution of 2011 loss - - - - (12,032) (157,113) 6,156 17,897 145,092 - - - -

BALANCE AT 2011 YEAR-END 3,099,018 451,196 273,417 - 15,832 (711,882) 3,905 26,684 (26,631) (30,727) 465,860 773 3,567,445

The accompanying Notes 1 to 20 are an integral part of the consolidated statement iof changes in net equity as of 31 December 2011.

CONSOLIDATED STATEMENT OF CASH FLOWS FOR 2011 (EUR thousand)

2011 2010

CASH FLOWS FROM OPERATING ACTIVITIES (I) 869,282 570,795

Loss for the year before tax (42,825) (199,504)

Adjustments for: 1,229,551 1,222,464

- Depreciation and amortisation charge 964,019 872,519

- Impairment losses 29,107 56,167

- Changes in provisions (71,715) 87,077

- Recognition of lease premium (23) (23)

- Recognition of grants in profit or loss (40,101) (32,845)

- Gains/Losses on derecognition and disposal of non-current assets 15,537 22,550

- Gains/losses on derecognition and disposal of financial instruments 1,093 6

- Finance income (43) (4,310)

- Finance costs 326,328 231,330

147

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2011 Annual report


CONSOLIDATED STATEMENT OF CASH FLOWS FOR 2011

2011 2010

- Exchange differences (101) (239)

- Changes in fair value of financial instruments 3,679 (38)

- Other revenues and expenses (10,183) (27,627)

- Results of associates accounted for using the equity method 11,954 17,897

Changes in working capital 30,126 (153,918)

- Inventories 396 (861)

- Trade and other receivables (145,730) (121,077)

- Other current assets (12,944) 2,943

- Trade and other payables 13,636 (27,083)

- Other current liabilities 438,555 (7,840)

- Other non current assets and liabilities (263,787) -

Other cash flows from operating activities (347,570) (298,247)

- Interest paid (374,673) (297,371)

- Dividends received 1,912 -

- Interest received 1,318 4,241

- Income tax recovered (paid) 24,274 (5,117)

- Other received (paid) (401) -

CASH FLOWS FROM INVESTING ACTIVITIES (II) (1,221,369) (1,732,502)

Payments due to investment (1,224,387) (1,732,918)

- Intangible assets (62,518) (72,186)

- Property, plant and equipment (1,159,828) (1,660,028)

- Property (1,524) -

- Other financial assets (517) (704)

148

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2011 Annual report


CONSOLIDATED STATEMENT OF CASH FLOWS FOR 2011

2011 2010

Proceeds from disposal 3,018 416

- Property, plant and equipment - 260

- Other financial assets 3,018 156

CASH FLOWS FROM FINANCING ACTIVITIES (III) 351,881 1,156,058

Proceeds and payments relating to equity instruments 29,450 69,453

- Grants, donations or gifts and legacies received 29,450 69,453

Proceeds and payments relating to financial liability instruments 322,431 1,086,605

- Proceeds from issue of bank borrowings 660,171 1,530,000

- Repayment of bank borrowings (335,773) (441,056)

- Other (-) (1,967) (2,339)

EFFECT OF FOREIGN EXCHANGE RATE CHANGES (IV) 101 236

NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS (I+II+III+IV) 105 (5,413)

Cash and cash equivalents at beginning of year 8,617 14,030

Cash and cash equivalents at end of year 8,512 8,617

The accompanying Notes 1 to 20 are an integral part of the consolidated statement of cash flows for 2011.

149

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2011 Annual report

1. Group Activities and Structure

Entidad Pública Empresarial “Aeropuertos Españoles y Navegación Aé-rea (AENA)” (“AENA” or“the Entity”) was set up under Article 82 of State Budget Law 4/1990 of 29 June. It was effectively formed on 19 June 1991 following the entry into force of its bylaws, which were ap-proved by Royal Decree 905/1991 of 14 June.

The Entity is structured as a public law entity attached to the Ministry of Public Works with its own legal personality independent from that of the State, and carries on its business activity within the framework of the Government’s general transport policy.

Its bylaws, approved by Royal Decree 905/1991 of 14 June, were sub-sequently amended by Royal Decree 1993/1996 of 6 September, Royal Decree 1711/1997 of 14 November, and Royal Decree 2825/1998 of 23 December.

Its purposes, per its bylaws, are as follows:

1. The organization, management, coordination, operation, upkeep and administration of civilian public airports and of the related serv-ices, and the coordination, operation, upkeep and administration of civilian areas at air bases open to civil aviation traffic.

2. The design, execution, management and control of investments in airport infrastructure and facilities.

3. The organization, management, coordination, operation, upkeep and administration of aeronautical telecommunications system fa-cilities and networks, navigation aids and air traffic control.

4. The design, execution, management and control of investments in aeronautical telecommunications system infrastructures, facilities and networks, navigation aids and air traffic control.

5. The submission of proposals for the planning of new airport and air navigation infrastructure and the modification of air space.

6. The development of security services at airports and control centers and participation in specific training relating to air transport and subject to the grant of official licenses, all without detriment to the functions assigned to the Spanish Directorate-General of Civil Avia-tion.

7. Equity investments in other companies or entities related to its ac-tivities that have a different purpose.

Services were first provided at Spanish airports in November 1991, and the provision of services relating to navigation aids and air traffic con-trol commenced in November 1992, when the formation of the Entity was completed.

The Entity’s registered office is in Madrid, at calle Arturo Soria, 109.

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2011 Annual report

Also, the Entity heads the Group composed of various companies en-gaging mainly in the management of airport infrastructure and con-sulting and engineering projects, particularly those relating to trans-port and its infrastructure.

SCOPE Of CONSOLIDATION

The list of subsidiaries and associates, together with the carrying amount of the ownership interests, in EUR thousand, relating thereto is as follows:

2011

Ownership interest

Consolidation Method

Company and Registered Office Line of Business%

Carrying amount of investment

Owner of invest-ment

Direct Indirect

Subsidiaries:

Aena Aeropuertos, S.A. (a)Arturo Soria, 109Madrid (1)

Operation, maintenance, management and administration of airport infrastructureand supplementary services.

100 - 2,600,868 EPE AENA Fully consolidated

Centro de Referencia Investigación, Desarrol-lo e Innovación ATM. A.I.E. (CRIDA) (a)Juan Ignacio Luca de Tena, 14Madrid (2)

Performance of R&D activities within the scope of ATM aimed at improvingthe services (in particular security, capacity and economic andenvironmental efficiency) of the Spanish Air Traffic Control system.

66.66-

-7,64

480 120

EPE AENAIndirecto INECO

Fully consolidated

Aena Desarrollo Internacional, S.A. (a)Arturo Soria, 109Madrid (1)


100 - 84,870Aena Aeropuertos

S.A.Fully consolidated

Centros Logísticos Aeroportuarios, S.A. (CLASA) (a)Edificio de Servicios Generales Aeropuerto de Madrid – BarajasMadrid (2)

Development, construction, management, operation and maintenance ofair cargo centers or equivalent centers at airports, and also as many commercialactivities as are directly or indirectly related thereto.

100 - 42,468Aena Aeropuertos


Concesionaria del Aeropuerto de Madrid-Barajas S.A.U.

Airport franchise management. 100 - 61Aena Aeropuertos


Concesionaria del Aeropuerto de Barcelona El Prat S.A.U.

Airport franchise management. 100 - 61Aena Aeropuertos


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2011 Annual report

Ownership interestConsolidation

MethodCompany and Registered Office Line of Business% Carrying amount

of investmentOwner of invest-

mentDirect Indirect

Subsidiaries:

Ingeniería y Economía del Transporte, S.A. (INECO) (a)Paseo de la Habana, 138Madrid (2)

Consulting and engineering projects particu-larly relating to transport and itsinfrastructure.

45.85 - 3,783 EPE AENA Equity method

Restauración de Aeropuertos Españoles, S.A. (RAESA) (a)Aeropuerto de Madrid-BarajasMadrid (2)

Operation of catering services at the Madrid-Barajas Airport. 48.99 - 1,353

Aena Aeropuertos S.A.

Equity method

Aeropuertos Mexicanos del Pacífico, S.A. de CV (AMP) (a)México DF (2)

Operator of Grupo Aeroportuario del Pacífico (GAP) airports.

- 33.33 84,121Aena Desarrollo

InternacionalEquity method

Sociedad Aeroportuaria de la Costa S.A. (SACSA) (a)Aeropuerto Rafael NúñezCartagena de Indias – Colombia (2)

Operation of the Cartagena Airport. - 37.89 690Aena Desarrollo


Aeropuertos del Caribe, S.A. (ACSA) (a)Aeropuerto Ernesto CortissozBarranquilla – Colombia (2)

Operation of the Barranquilla Airport. - 40 159Aena Desarrollo

Internacional Equity method

Aerocali, S.A. (a)Aeropuerto Alfons Bonilla AragónCali - Colombia (2)

Operation of the Cali Airport. - 33.33 1,659Aena Desarrollo


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2011 Annual report

2010




mentDirect Indirect

Subsidiaries:



100 - 83,184 AENA Fully consolidated

Centros Logísticos Aeroportuarios, S.A. (CLASA) (a)Edificio de Servicios Generales Aeropuerto de Madrid – BarajasMadrid (2)


100 - 24,137 AENA Fully consolidated

Centro de Referencia Investigación, Desar-rollo e Innovación ATM. A.I.E. (CRIDA) (a)Juan Ignacio Luca de Tena, 14Madrid (2)

Performance of R&D activities within the scope of ATM aimed at improvingthe services (in particular security, capacity and economic andenvironmental efficiency) of the Spanish Air Traffic Control system as anintegral part of a global system.

66.66-

-7.64

480120

AENAIndirectly INECO

Fully consolidated




mentDirect Indirect

Subsidiaries:

Ingeniería y Economía del Transporte, S.A. (INECO) (a)Paseo de la Habana, 138Madrid (2)

Consulting and engineering projects particu-larly relating to transport and itsinfrastructure.

45.85 - 3,783 AENA Equity Method

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2011 Annual report




mentDirect Indirect

Subsidiaries:


Operation of catering services at the Madrid-Barajas airport. 48.99 - 294 AENA Equity Method


Operator of Grupo Aeroportuario del Pacífico (GAP) airports.

-

33.3384,121

Aena Desarrollo Internacional Equity Method


Operation of the Cartagena Airport.- 37.89

690

Aena Desarrollo Internacional

Equity Method


Operation of the Barranquilla Airport.-

40

159

Aena Desarrollo Internacional

Equity Method


Operation of the Cali Airport.- 33.33

1,659

Aena Desarrollo Internacional Equity Method

(a) Information obtained from the separate financial statements for 2011 and 2010.(1) Companies audited by the PwC network.(2) Company audited by other auditors.

On 31 December 2011 and 2010, none of these companies was listed on the stock market.On 24 February 2006, Grupo Aeroportuario del Pacifico, S.A. (a company participated by AMP) started quoting on the Mexican and New York Stock Markets, through a Initial Public Offering of the Mexican Government (the last proprietor of 85% of the capital). Also, Aeropuertos Mexicanos del Pacífico purchased in the stock market 2.296% of Grupo Aeroportuario del Pacífico, S.A. totalling 286,297,895 Mexican pesos (MXN), owning a total 17.296% of its capital. In May 2008, 640,000 shares were purchased in the stock market for 26,229,376 Mexican pesos (MXN), 0.11396%, owning a total 17.40996% share of Grupo Aeroportuario del Pacífico, S.A. The average share price Aeropuertos Mexicanos del Pacífico owns of Grupo Aeroportuario del Pacífico amounts to 23.12 Mexican peso (MXN), while the quotation value on 31 December 2011 was 47.25 Mexican pesos (MXN).

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2011 Annual report

2. Basis of presentation

A) REGuLATORy fRAMEWORK fOR fINANCIAL REPORTING AP-PLICABLE TO THE COMPANy

These Consolidated annual statements were formally prepared by the directors in accordance with the regulatory financial reporting frame-work applicable to the Company, which consists of:

a) The Spanish Commercial Code and all other Spanish corporate law.

b) The Spanish regulations for the preparation of Financial Statements approved by Royal Decree 1159/2010 and the Spanish National Chart of Accounts approved by Royal Decree 1514/2007 and its industry adaptations.

c) The mandatory rules approved by the Spanish Accounting and Au-dit Institute in order to implement the Spanish National Chart of Accounts and the relevant secondary legislation.

d) All other applicable Spanish accounting legislation.

B) fAIR PRESENTATION

The accompanying financial statements, which were obtained from the accounting records of Entidad Pública Empresarial “Aeropuertos Españoles y Navegación Aérea (Aena)” and of its subsidiaries, are pre-sented in accordance with the regulatory framework applicable to the Group and, in particular, with the accounting principles and rules

contained therein, and, accordingly, are a fair representation of the Group´s equity, financial position, results of operations and cash flows for 2011.

These financial statements, which were formally prepared by the Chairman and General Manager of the Parent, will be submitted for approval of the Board of Directors of the Parent. It is expected that they will be approved without any changes. The financial statements for 2010 were approved by the Board of Directors of the Parent at its meeting held on 23 May 2011.

C) ACCOuNTING PRINCIPLES APPLIED

These consolidated financial statements were prepared by taking into account all the obligatory accounting principles and standards with a significant effect hereon. All obligatory accounting principles were applied.

On 31 December 2011, the Group had a negative working capital of EUR 2,004 million and a loss for the year of EUR 26 million. In order to meet its investment commitments and settle its liabilities, the Group has credit lines and undrawn loans of EUR 528.8 million (see Note 14), in addition to the cash flows that will be generated in 2012. Also, under the “Framework Agreement to finance the Strategic Plan for Infrastructures and Transport” (PEIT) between the Ministry of Public Works and the European Investment Bank (EIB) of 4 July 2006, the Par-ent public entity Group may opt to arrange supplementary financing of EUR 115 million subject to the EIB’s positive assessment of the projects for which the financing is requested.

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2011 Annual report

Additionally, renewals/extensions of credit lines and non-current loans have already been negotiated for EUR 175 million, as has the emission of a line of short-term commercial paper, European Commercial Paper, for EUR 150 million.

In view of the foregoing, the directors of the parent public entity consider that it will not have any difficulties in fulfilling its short-term obligations.

D) KEy ISSuES IN RELATION TO THE MEASuREMENT AND ESTI-MATE Of uNCERTAINTy

In preparing the accompanying consolidated financial statements, esti-mates were made by the Group companies’ directors in order to meas-ure some of the assets, liabilities, income, expenses and obligations reported herein. These estimates relate basically to the following:

• The assessment of possible impairment losses on certain assets (see Note 4)

• The useful life of property, plant and equipment and intangible as-sets (see Note 4)

• The calculation of provisions (see Note 13)

• The market value of certain financial instruments (see Note 10).

Although these estimates were made on the basis of the best informa-tion available at 2011 year-end, events that take place in the future might make it necessary to change these estimates (upwards or down-wards) in coming years.

E) GROuPING Of ITEMS

Certain items in the consolidated balance sheet, consolidated income statement, consolidated statement of changes in equity and consoli-dated statement of cash flows are grouped together to facilitate their understanding; however, whenever the amounts involved are material, the obligatory information is broken down in the related notes to the consolidated financial statements.

f) CONSOLIDATION METHODS

The consolidation was carried out in accordance with current legisla-tion by applying the following methods:

1. Companies over which “Aeropuertos Españoles y Navegación Aérea (AENA)” exercises control (combined direct and indirect ownership interest of more than 50%) are deemed to be subsidiaries. Financial statements of subsidiaries are consolidated using the method of global integration.

2. Companies over which the Company has the capacity to exercise significant influence are deemed to be associates. Significant influ-ence is presumed to exist when the Company’s percentage of own-ership is greater than 20% but less than 50%. These companies were accounted for using the equity method.

In all cases the financial statements of the Group companies used in the process of consolidation are those for the year ended 31 December 2011.

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2011 Annual report

The profit or loss on the transactions of companies that were acquired or disposed of was included from the date of acquisition or up to the date of disposal, respectively.

For the purposes of the accompanying consolidated financial state-ments, the date of first-time consolidation for each subsidiary was deemed to be that on which it joined the Group or the date of its first consolidation, if later.

Balances and transactions between companies included in the scope of consolidation

The accounts receivable and payable and significant transactions be-tween consolidated companies were eliminated upon consolidation.

Standardisation of accounting principles

In order to uniformly present the items included in the accompanying consolidated financial statements, the same methods were applied to all the companies included in the scope of consolidation.

Minority interests

The share of third parties in the equity and profit/loss of companies that were fully consolidated is shown under “Equity - Minority Inter-ests” in the consolidated balance sheet and under “Loss Attributable to Minority Interests” in the accompanying 2011 consolidated income statement, respectively.

Exchange methods (year-end rate method)

The financial statements of the Colombian associates Aeropuertos del

Caribe S.A., Sociedad Aeroportuaria de la Costa S.A. and Aerocali S.A. and the Mexican associate Aeropuertos Mexicanos del Pacífico S.A. de CV were converted to euros at the exchange rates ruling at year-end, by applying the following procedure:

1. The asset and liability items of the foreign company were converted at the exchange rate ruling at the closing date of the company in question.

2. The equity items of the foreign company were converted at the his-torical exchange rates prevailing at the date on which the item was included in the company’s equity.

The differences accumulated on the transition date as a result of the application of this exchange method were deemed to be investor re-serves. The exchange differences arising in the year were included un-der “Equity – Valuation Adjustments” in the accompanying balance sheet on 31 December 2011.

G) CHANGES IN THE CONSOLIDATION PERIMETER

Royal Decree-Law 13/2010 on tax, labour and liberalisation measures aimed at encouraging investment and job creation was passed on 3 December 2010. This Royal Decree deals with the new legal frame-work for the modernization and liberalization of the 47 airports of the Aena network. The new regulation tries to carry out the transformation of the Spanish airport system, which, since 1990, has been managed by Public Business Entity ‘Aeropuertos Españoles y Navegación Aérea’ (Aena) in order to open it to new ways of decentralized management and to private sector collaboration.

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2011 Annual report

In order to achieve this, the Government was authorised to create be-fore 28 February 2011, the state Trading Company Aena Aeropuertos S.A., which assumes the whole set of functions and responsibilities that is currently exerted by the Public Business Entity Aena regarding the management and operation of airport services and any additional competences conferred to the airport service provider by national or international regulations, related to the airport and heliport network managed by Aena. However, the state competencies regarding air navigation will be exerted by the Public Business Entity, in the legal framework stated by the Law 9/2010, 14 April.

In order to provide the subsidiary Aena Aeropuertos S.A. with the re-sources required to fulfill its objectives, Article 9 of Royal Decree-Law 13/2010 of 3 December stipulates the reversal of all the airport assets of the Public Business Entity Aena, so all State public domain goods at-tached to the Public Business Entity Aena not related to air navigation services, including those for aerodrome air traffic services, will cease to be of public domain, although the expropriation aim is not altered, so the reversal will not be necessary.

Once the creation of the state trading company Aena Aeropuertos, S.A. was authorized by the Council of Ministers on 25 February, 2011, the company was incorporated through the issuance of 61 shares of 1,000 euros of nominal value, subscribed and paid entirely by the public entity business “Aeropuertos Españoles y Navegación Aérea”, which is its sole shareholder. The Public Business Entity Aeropuertos Españoles y Navegación Aérea will retain, in any case, most of the capital of Aena Aeropuertos, S.A under the terms provided for by article 7.1 second subparagraph of the Royal Decree-Law 13/2010 of 3 December, and may dispose of the rest pursuant to the stipulations

of Law 33/2003 of November 3, “Patrimonio de las Administraciones Públicas” (Law on Public Administration Assets).

On 23 May 2011, the Board of Directors of Aena was authorised to contribute to Aena Aeropuertos, S.A., all assets, rights, debts and ob-ligations subject to the development of airport and commercial activi-ties and other state-owned services related to airport management, including aerodrome air traffic services of the Public Business Entity, and established that, pursuant to section 4 of Council of Ministers’ Agreement dated 25 February 2011, all assets, rights, debts and ob-ligations subject to the activity of approval of construction work in airport infrastructures operated by Aena Aeropuertos S.A., and coor-dinating and facilitating time frames, and any other activity related to airport management not included in the corporate purpose of Aena Aeropuertos S.A.

The incorporation of this company was recorded in the commercial register following the agreement of the Board of Directors on 23 May 2011, whereby the approval of the company’s activity and valuation was finalised. The actual date of registration in the Commercial Regis-ter is 31 May 2011.

All ongoing contracts, tender dossiers, and lawsuits related to airport activity are transferred to Aena Aeropuertos, S.A. Additionally, all Pub-lic Business Entity “Aeropuertos Españoles y Navegación Aérea” staff, needed to provide services for the airport activity, contribute to and are integrated into the new public company which subrogates as their em-ployer. The staff herein shall maintain seniority and any other rights ac-cumulated when the company begins to operate, as well as the same collective bargaining agreements and valid terms of contract.

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2011 Annual report

Pursuant to an agreement by the Council of Ministers on 3 June, 2011 the company is authorised to contribute all Public Business Entity “Aeropuertos Españoles y Navegación Aérea” airport assets to the new public company Aena Aeropuertos S.A., and to increase capital that was fully subscribed by its sole shareholder, the Public Business Entity “Aeropuertos Españoles y Navegación Aérea”.

On 6 June 2011 the Public Business Entity “Aeropuertos Españoles y Navegación Aérea”, the Company’s Sole Shareholder, in order to comply with the Council of Minister’s agreement dated 3 June 2011, adopted the decisions to accept the contribution of all assets and li-abilities subject to the airport activity of Aena, the subrogation of all contracts of any kind related to airport activity subscribed by Aena and every lawsuit subject to the development of state-owned services re-lated to airport management, including aerodrome air traffic services.

Also, on 6 June 2011 the Public Business Entity “Aeropuertos Españoles y Navegación Aérea”, the Company’s Sole Shareholder, adopted the following sole shareholder decisions:

a. To reduce the par value of the company shares by ONE THOUSAND EUROS (€1,000) per share by dividing the SIXTY-ONE shares in circula-tion into SIX THOUSAND ONE HUNDRED new shares with the propor-tion of ONE HUNDRED new shares for each old share, without allow-ing this to cause the amount of the share capital of the company to vary. As a result the share capital is SIXTY ONE THOUSAND EUROS and is represented by SIX THOUSAND ONE HUNDRED SHARES of TEN EU-ROS par value. All shares are of the same kind with the same political and economic rights.

b. To increase the company capital from €61,000 to €1,500,000,000 (ONE THOUSAND FIVE HUNDRED MILLION EUROS), i.e. a share capital increase of €1,499,939,000.

c. Ordinary shares of a nominal value of €10 each were to be issued to represent the aforementioned capital increase of 149,993,900, with the same rights and obligations as the previous ones. These new shares are to be issued with a total share premium of €1,100,868,000 (ONE THOUSAND ONE HUNDRED MILLION EIGHT HUNDRED AND SIXTY-EIGHT THOUSAND EUROS), thus making the total amount paid out as capital and share premium €2,600,807,000 (TWO THOUSAND SIX HUNDRED MILLION EIGHT HUNDRED AND SEVEN THOUSAND EU-ROS).

d. In accordance with the provisions of Article 9 of Royal Decree, Law 13/2010 and in the agreements of 25 February and 3 June 2011, the Public Business Entity “Aeropuertos Españoles y Navegación Aérea” fully subscribes and pays out the total face value of the shares and the share premium through the activity referred to in paragraph 1 of this section of the report.

e. The Public Business Entity, “Aeropuertos Españoles y Navegación Aérea”, contributes to the company the whole activity as an operat-ing unit in the state in which it is found (ownership, rights of use, situation, charges, etc.) according to the terms in Royal Decree, Law 13/2010. Concerning the contribution, the Public Business Entity “Aeropuertos Españoles y Navegación Aérea”, in accordance with Ar-ticle 66 of the Capital Companies Act, approved by Royal Legislative Decree 1/2010 of 2 July, would respond only if the fault or warranty of title were to affect all or an essential part of the activity. For these

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2011 Annual report

purposes, anything that affects 20% or more of the total value of the contributed activity shall be understood as an essential part, or when an airport is individually affected so as to prevent it exercising its activ-ity as an airport, without detriment to the jurisdictional control over existing legislation.

In addition to the aforementioned, any difference that may arise be-tween the estimate of the value of assets and liabilities contributed on which the necessary capital increase of the company is based and the value of the assets and liabilities actually contributed, that may occur during the period elapsing from the date of the contribution to the date of transmission to private investors of part of the company’s capital, would be adjusted. The adjustment would be of the same amount, as a greater or lesser credit balance awarded by the Public Business Entity “Aeropuertos Españoles y Navegación Aérea” to the company, this under no circumstances affecting the capital increase adjustment.

f. All Public Business Entity “Aeropuertos Españoles y Navegación Aé-rea” staff needed to provide services for the activity, contribute to and are integrated into the company with the same collective bargaining agreements and valid terms of contract. Seniority and any other rights accumulated when the company begins to operate are respected.

g. The Split and the valuation of the activity contributed were approved by the Board of Directors of the Public Business Entity “Aeropuertos Españoles y Navegación Aérea” on 23 May 2011 in accordance with the valuation report made, which resulted in an amount of the Activity

transferred as €2,600,807,000. This valuation was carried out using the net worth value of the branch of activity provided as a benchmark, in accordance with current accounting standards and particularly the General Accounting Plan. It complies with the requirements of Article 114 of the LPAP.

h. In accordance with Articles 70 and 300.1 of the Capital Companies Law, the Company Board Members have signed the report which the sole shareholder has examined.

i. The company will begin exercising the activity with effect on the date to be determined by order of the Minister of Development, expected in the second transitional provision of Royal Legislative Decree 13/2010.

j. The contribution of the activity is applied under the special regime stipulated in Chapter VIII of Title VII of Royal Decree, Law 4/2004 of 5 March, which approves the revised text of the Law on corporate tax (TRLIS) in accordance with the stipulations of the third additional provi-sion 2 of Royal Decree, Law 13/2010.

Pursuant to the second transitional provision of Royal Legislative De-cree 13/2010, of 3 December, once the staff, and the set of assets, rights, contracts, tender dossiers, debts, and obligations, of Aena in-tegrating in Aena Aeropuertos, S.A. are established, the contribution to the public trade company, and its acceptance of the contribution completed, by means of Ministry Order FOM/1525/2011, of 7 June, the effective date of beginning for Aena Aeropuertos, S.A. to exercise the functions and obligations subject to airport management is 8 June 2011, date from which Public Business Entity “Aeropuertos Españoles

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y Navegación Aérea” (Aena), ceases to exercise state-owned services related to airport management.

Additionally, in 2011 the subsidiary Aena Aeropuertos S.A. founded the concession company for the Madrid-Barajas Airport and the con-cession company for Barcelona-El Prat Airport with a company capital of EUR 61 thousand each and with no operations during the year. In fact, on 25 January 2012 the Board of Directors agreed to waive the contracts related to lots I y II of the “Tender process to select partners to participate in the share capital of the public limited liability compa-nies in charge of the management of the airport service concessions for Madrid – Barajas and Barcelona –El Prat (See note 19).

3. Allocation of loss

The allocation of the loss for 2011 submitted by the Chairman – Gen-eral Manager of the Company, per the bylaws, is as follows:

Thousands of Euros

Basis of allocation:Loss for the year

62,999

Appropriation to:Retained losses

62,999

4. Measurement basesThe principal measurement bases applied by the Company and its Sub-sidiaries (AENA Group) in preparing their consolidated financial state-ments for 2011, in accordance with the Spanish National Chart of Accounts, were as follows:

A) INTANGIBLE ASSETS

Intangible assets are recognised at acquisition, production cost or their saleable assignment value. Amortisation is calculated on a straight-line basis based on the useful lives of the related assets at the following rates:

Concept %

Development expenditure 25

Computer software 17-25

Other intangible assets 12.5-25

Development expenditure, specifically itemised by project, which is, or will foreseeably be economically and financially profitable and techni-cally successful, is capitalised and amortised over a period of four years from the date of completion. If there are changes in the favourable cir-cumstances of the project that made it possible to capitalise these ex-penses, the unamortised portion is charged to income in the year in which these conditions change.

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“Computer Software” relates to the amounts paid to acquire and de-velop certain computer programs. Computer software maintenance costs are recognised with a charge to the income statement for the year in which they are incurred.

“Other intangible assets” relates to the capitalisation of the Airport Master Plans by the subsidiary Aena Aeropuertos, S.A. and the studies associated with them, which are amortised over a period of 8 years.

Impairment of intangible assets and property, plant and equipment

At least at year end, the Group tests the non-current and intangible assets for impairment to determine whether the recoverable amount of the assets was reduced to below their carrying amount.

The Group makes a distinction between cash-generating assets and non-cash-generating assets. Cash-generating assets are items of property, plant and equipment, intangible assets or property owned to obtain a profit or generate a commercial return through the deliv-ery of goods or the provision of services, while non-cash-generating assets are items owned for a purpose other than to obtain a com-mercial return. On certain occasions, even if an asset is held mainly to produce social economic flows that benefit the group, it can also generate a commercial return through part of its installations or components or through a use both incidental and different to its main use. When the cash-generating component or use can be con-sidered accessory with respect to the main objective of the asset as a whole, or it cannot be operated or exploited independently from the rest of the components and installations composing the asset, it is considered as a whole to be non-cash-generating. The recoverable

amount is the higher of fair value less costs to sell and value in use. In the case of non-cash-generating assets, the value in use will be deter-mined by reference to their depreciated replacement cost.

The Parent performs impairment tests as follows:

• The recoverable amounts are calculated for each cash generating unit; for the whole airport network and all the air traffic control centers and towers through which the air traffic control service is provided.

• Management prepares a business plan each year (Pluriannual Ac-tion Plan) which generally spans a period of three years. The main components of this plan, on which the impairment test is based, are as follows:

» Earning projections.

» Working capital and investments projections.

• Other variables affecting the calculation of the recoverable amount are:

» The discount rate to be used, which is taken to be the weighted average cost of capital, the main variables with an effect on its calculation being interest costs and the risks specific to the assets.

» The cash flow growth rate used to extrapolate the cash flow pro-jections to beyond the period covered by the budgets or forecasts.

• The Pluriannual Action Plans are prepared in accordance with the best estimates available and are approved by the Board of Direc-tors.

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If an impairment loss has to be recognised, the Group reduces the carrying amount of the assets in the cash generating unit down to the limit of the highest of the following values: fair value less costs to sell; value in use (or, in the case of non-cash-generating assets, depreciated replacement cost).

If an impairment loss were to subsequently reverse, the carrying amount of the asset or cash-generating unit would be increased to the revised estimate of its recoverable amount, such that the increased carrying amount does not exceed the carrying amount that would be determined had no impairment loss been recognised in prior years. Such a reversal of an impairment loss would be recognised as income.

In 2011 no material impairment losses were detected as a result of the preceding analysis.

B) PROPERTy, PLANT AND EQuIPMENT

Property, plant and equipment are presented in the consolidated bal-ance sheet and are measured at acquisition cost, production cost or saleable assignment value less any accumulated depreciation and any accumulated impairment losses, as indicated in the previous note.

Assigned property, plant and equipment are measured at their saleable value, which is considered to be the actual value in use based on an in-dependent appraisal since, given that they are assigned to the Parent’s assets, no consideration, which would have enabled the acquisition cost to be determined, was paid.

Property, plant and equipment additions and purchases made by the Group are measured at acquisition or production cost and include the environmental costs required to make them.

Property, plant and equipment additions prior to 31 December 1996 are measured at revalued cost or initial appraisal value, pursuant to the related enabling legislation.

Interest and other finance costs incurred, directly attributable to the acquisition or construction of assets at the various airports, which nec-essarily require a period of at least 12 months to come into operation, are treated as an addition to the related assets. The assets not included in the airport network do not include the finance costs related to their financing.

In-house work on non-current assets is measured at accumulated cost (external costs plus inhouse costs, determined on the basis of in-house materials consumption, direct labour and general manufacturing costs).

Replacements or renewals of complete items that lead to a lengthen-ing of the useful life of the assets or to an increase in their economic capacity are accounted for as additions to property, plant and equip-ment, and the items replaced or renewed are derecognised.

Periodic maintenance, upkeep and repair expenses are recognised in the income statement on an accrual basis as incurred.

The Group depreciates its property, plant and equipment once they are ready for use by the straight-line method apportioning the carrying amount of the assets over their estimated useful lives, except in the case of land, which is considered to have an indefinite useful life and

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is therefore not depreciated. The useful life of the assigned property, plant and equipment was estimated on the basis of the degree of use of the assets included under each heading. The years of estimated use-ful life are as follows:

Concept Years

Buildings 20 - 50

Plant 10 - 20

Machinery 5 - 25

Other fixtures 8 - 20

Furniture 10 - 13

Other property, plant and equipment items 4 - 17

C) INVESTMENT PROPERTy

“Investment Property” in the consolidated balance sheet includes the value of buildings, other structures and fixtures held to earn rentals.

Investment property is measured as described in Note 4-b on property, plant and equipment.

D) LEASES

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. All other leases are classified as oper-ating leases.

finance Leases

In finance leases in which the Group acts as the lessee, the cost of the leased assets is presented in the consolidated balance sheet, based on the nature of the leased asset, and, simultaneously, a liability is recognised for the same amount. The cost is calculated by updating the amounts payable provided for in the agreement, including those stipulated in the agreement in relation to the purchase option and the effective interest rate. The total finance charges arising under the lease are allocated to the consolidated income statement for the year in which they are incurred using the effective interest method. Con-tingent rent is recognised as an expense for the period in which it is incurred.

Operating leasesLease income and expenses from operating leases corresponding to the lessee are recognised in the consolidated income statement on an accrual basis.

The acquisition cost of the leased assets is presented in the consoli-dated balance sheet according to the nature of the asset.

Any collection or payment that might be made when arranging an operating lease will be treated as a prepaid lease collection or payment which will be allocated to profit or loss over the lease term.

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E) fINANCIAL INSTRuMENTS

e-1) financial assets

Classification

The financial assets held by the Group are classified in the following categories:

a. Loans and receivables.

b. Minority shareholdings : assets acquired with the intention of sell-ing them in the short term and assets that form part of a portfolio for which there is evidence of a recent actual pattern of short-term profit-taking. This category also includes financial derivatives that have not been designated as hedging instruments.

c. Available-for-sale financial assets: these are equity instruments of other companies that were not classified in any of the aforemen-tioned categories

Initial recognition

Financial assets are initially recognised at the fair value of the consid-eration given, plus any directly attributable transaction costs.

Subsequent measurement

Loans and receivables and held-to-maturity investments are measured at amortised cost. If the recoverable value of the asset is estimated to be lower than its amortised cost taking into account the solvency of the debtor and the age of the debt, the Group recognises the related impairment loss with charge to income.

Available-for-sale financial assets are measured at fair value and the gains and losses arising from changes in fair value are recognised in equity until the asset is disposed of or it is determined that it has be-come (permanently) impaired, at which time the cumulative gains or losses previously recognised in equity are recognised in the net profit or loss for the year.

Impairment losses are recognised or reversed with a charge or credit to income, respectively, in the year in which they are incurred.

The Group derecognises a financial asset when it expires or when the rights to the cash flows from the financial asset were transferred and substantially all the risks and rewards of ownership of the financial as-set were transferred.

e-2) financial liabilities

Accounts payable are initially recognised at the fair value of the consid-eration received, adjusted by the directly attributable transaction costs. These liabilities are subsequently measured at amortised cost.

f) HEDGE ACCOuNTING

The Group uses derivative financial instruments to hedge the risks to which its business activities, operations and future cash flows are ex-posed. These risks arise mainly as a result of changes in exchange rates and interest rates.

In order for this financial instrument to qualify for hedge accounting, it was initially designated as such and the hedging relationship was

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documented. Also, the Group verifies, both at inception and periodi-cally over the term of the hedge (at least at the end of each reporting period), that the hedging relationship is effective, i.e. that it is prospec-tively foreseeable that the changes in the fair value or cash flows of the hedged item (attributable to the hedged risk) will be almost fully offset by those of the hedging instrument and that, retrospectively, the gain or loss on the hedge was within a range of 80-125% of the gain or loss on the hedged item.

In a cash flow hedge, the portion of the gain or loss on the hedging instrument that was determined to be an effective hedge is recognised temporarily in equity and is recognised in the consolidated income statement in the same period during which the hedged item affects profit or loss, unless the hedge relates to a forecast transaction that results in the recognition of a non-financial asset or a non-financial li-ability, in which case the amounts recognised in equity are included in the initial cost of the asset or liability when it is acquired or assumed.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised,or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained in equity until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is transferred to net profit or loss for the year and the amount thereof is recognised as financial profit or loss in the consolidated income statement.

G) INVENTORIES

Inventories include spare parts and sundry materials at the Central Warehouses and the Parent’s Logistics Support Center, and are initially measured at cost (weighted average cost). Acquisition cost is based on historic cost for items identified in the purchases books. Subsequently, if the net realisable value of the inventories is lower than the acquisi-tion cost, the appropriate write-downs will be made. If the circum-stances causing the inventories to be written down ceased to exist, the amount of the write-down would be reversed.

H) fOREIGN CuRRENCy TRANSACTIONS

The Group’s functional currency is the euro. Therefore, transactions in currencies other than the euro are deemed to be “foreign currency transactions” and are recognised by applying the exchange rates pre-vailing at the date of the transaction.

Any exchange differences arising on settlement or exchange at the closing rates of monetary items are recognised in the consolidated in-come statement for the year.

I) INCOME TAx

Tax expense (tax income) comprises current tax expense (current tax income) and deferred tax expense (deferred tax income).

The current income tax expense is the amount payable as a result of in-come tax settlements for a given year. Tax credits and other tax benefits,

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excluding tax withholdings and prepayments, and tax loss carryforwards from prior years effectively offset in the current year reduce the current income tax expense.

The deferred tax expense or income relates to the recognition and dere-cognition of deferred tax assets and liabilities. These include temporary differences measured at the amount expected to be payable or recover-able on differences between the carrying amounts of assets and liabili-ties and their tax bases, and tax loss and tax credit carryforwards. These amounts are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled.

Deferred tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised to the extent that it is considered probable that the Parent will have taxable profits in the future against which the deferred tax assets can be utilised.

Deferred tax assets and liabilities arising from transactions charged or credited directly to equity are also recognised in equity.

The deferred tax assets recognised are reassessed at the end of each reporting period and the appropriate adjustments are made to the ex-tent that there are doubts as to their future recoverability. Also, unrec-ognised deferred tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become probable that they will be recovered through future taxable profits.

Since 2005, the Parent, as head of the AENA Group, has filed consoli-dated tax returns with certain subsidiaries as they meet the require-ments established in this connection.

The companies which form the tax group, together with the Company in 2011 are as follows:

1. Aena Aeropuertos, S.A.

2. Aena Desarrollo Internacional, S.A.

3. Centros Logísticos Aeroportuarios, S.A.

J) REVENuE AND ExPENSES

Revenue and expenses are recognised on an accrual basis, i.e. when the actual flow of the related goods and services occurs, regardless of when the resulting monetary or financial flow arises.

Interest income from financial assets is recognised using the effective interest method and dividend income is recognised when the share-holder’s right to receive payment was established.

Interest and dividends from financial assets accrued after the date of acquisition are recognised as consolidated income.

K) PROVISIONS AND CONTINGENCIES

In preparing its consolidated financial statements, the Group distin-guishes between:

a. Provisions: credit balances covering present obligations arising from past events with respect to which it is probable that an outflow of resources embodying economic benefits that is uncertain as to its amount and/or timing will be required to settle the obligations.

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b. Contingent liabilities: possible obligations that arise from past events and whose existence will be confirmed only by the occur-rence or non-occurrence of one or more future events not wholly within the Group’s control.

The consolidated financial statements include all the provisions with respect to which it is considered that it is more likely than not that the obligation will have to be settled. Contingent liabilities are not recog-nised in the consolidated financial statements, but rather are disclosed to the extent that they are deemed possible.

Provisions are measured at the present value of the best possible esti-mate of the amount required to settle or transfer the obligation to a third party. Where discounting is used, adjustments made to provisions are recognised as interest cost on an accrual basis.

The main estimates made by the Group were as follows:

Provisions for benefit obligations acquired

The cost of the obligations arising from employee benefit obligations is recognised on an accrual basis, in accordance with the best estimate calculated using the data available to the Group.

Specifically, the accompanying balance sheet includes the following provisions for employment benefit obligations acquired:

Long-service bonuses

Article 138 of the Company’s Fifth Collective Labour Agreement and Article 141 of the First Air Traffic Controllers’ Collective Labour Agree-ment provide for certain long-service bonuses for services effectively

rendered for 25 and 30 years in the first case, and for 25 and 35 years in the second. The Group recognises the present value of the best pos-sible estimate of future obligations, based on an actuarial calculation. The main assumptions used to obtain the actuarial calculation were as follows:

Discount rate: 4.60%

Salary growth: 2.0%

Mortality table: PERM/F2000

Financial system used: Individual capitalisation

Accrual method: Projected Unit Credit

Retirement age: 65 years

Disability tables: Ministerial order 1977:

Early retirement bonus

Under Article 154 of the Fourth Collective Labour Agreement, all em-ployees aged between 60 and 64 years of age who, pursuant to cur-rent legislation are entitled to do so, may retire early voluntarily and receive a termination benefit which, combined with the consolidated entitlements under the Pension Plan at the date of termination of their contracts, is equivalent to four months’ salary, calculated on the basis of their basic pay plus their long-service bonus, for every year remaining until they reach 64 years of age, or the related proportional part.

In 2004 the early retirement bonuses were externalised through a sin-gle premium life insurance policy taken out on 25 March 2004 with Mapfre Vida.

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The Parent recognises the assets or liabilities arising from the difference between the present value of the remuneration commitments and the present value of the externalised plan assets. The main assumptions used in the measurement were as follows:


Salary increase: 3.00%

Returns on Contribution Fund: 4.00%

Mapfre guaranteed rate: 3.10%





Participation bonuses and other

This heading includes salary items accrued but not paid relating to re-muneration arising from agreements entered into between the Com-pany and the Air Traffic Controllers’ Labour Union in prior years before Royal Decree-Law 1/2010, of 5 February. These provisions are meas-ured at their nominal value, as this does not differ significantly from their present value.

Special Paid Leave (LER) and Active Reserve (RA)

This provision includes the actuarial liability which measures the ac-quired commitments to the air traffic controller employees who have availed themselves of special paid leave and the best estimate of the number of employees that might join the active reserve in the future.

The main actuarial assumptions used in the calculation were as follows:

Discount factor: IBOXX Curve Corporate AA corresponding to 31/12/2011 according to the duration of conditions of the collective

Annual CPI growth: 3.0%

Mortality table: PERM/F2000P

Financial system used: I Individual capitalisation


As this is not a post-employment benefit, the impact generated by changes in actuarial assumptions are recognised in the income state-ment.

Provision for productivity bonus

This provision includes the difference between the total salary author-ised for the air traffic controllers in a year and the remuneration earned in that year. This amount is used to pay a productivity bonus which is paid within twelve months after year-end.

L) TERMINATION BENEfITS

Under current employment legislation, the Group is required to pay ter-mination benefits to employees terminated under certain conditions.

Termination benefits that can be reasonably quantified are recognised as an expense in the year in which the decision to terminate the em-

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ployment relationship is made. The directors of the Company and its subsidiaries do not foresee any terminations in the future that might make it necessary to recognise a provision in this connection.

M) ACTIVITIES WITH ENVIRONMENTAL IMPACT

Environmental activities are those the purpose of which is to prevent, reduce or redress damage to the environment.

In this respect, investments made in connection with environmental activities are measured at acquisition cost and are capitalised as an ad-dition to non-current assets in the year in which they are made, using the methods described in Note 4-b.

The expenses arising from environmental protection and enhancement measures are charged to income in the year in which they are incurred, regardless of when the resulting monetary or financial flow arises.

The provisions for probable or certain third-party liability, litigation in progress and outstanding environmental indemnity payments or obli-gations of undetermined amount not covered by the insurance poli-cies taken out are recognised, where appropriate, when the liability or obligation giving rise to the indemnity or payment arises, as described in Note 4-k.

N) GRANTS, DONATIONS OR GIfTS AND BEQuESTS RECEIVED

Non-refundable grants, donations or gifts and bequests related to as-sets are recognised as such when there is a specific agreement relating to the award of the grant, the conditions established for the award of the grant were met and there are no reasonable doubts in relation to the award thereof. Since 2009, as a result of the approval of Ministerial Order EHA/733/2010, of March 25, by which some accounting aspects of public companies operating in certain circumstances -in the case of grants awarded for the construction of assets the execution of which has not yet been completed- grants were classified as non-refundable in proportion of the construction work completed provided that there are no reasonable doubts that the construction will be completed in accordance with the terms and conditions established in the conces-sion agreement. In general, they are measured at the fair value of the amount or the asset granted and are initially recognised as income net of tax recognised directly in equity and are allocated to profit or loss in proportion to the period depreciation on the assets for which they were granted, except in the case of nondepreciable assets, the grants for which are allocated to profit or loss in the year in which the assets are disposed of or impairment losses are recognised. Govern-ment grants to compensate costs are recognised in profit or loss on a systematic basis over the periods in which the Group recognises as expenses the related costs for which the grants are intended to com-pensate.

Refundable grants, donations or gifts and bequests received are recognised as liabilities of the company until they become non-re-fundable or are repaid.

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Grants related to income are credited to income when granted, unless their purpose is to finance losses from operations in future years, in which case they are allocated to income in those years. If grants are received to finance specific expenses, they are allocated to income as the related expenses are incurred, being recognised in the meantime as liabilities of the company until they become non-refundable or are repaid.

O) RELATED PARTy TRANSACTIONS

The Company and its subsidiaries perform all their transactions with related parties on an arm’s length basis. Also, the transfer prices are adequately supported and, therefore, the directors of the Company and its subsidiaries consider that there are no material risks in this con-nection that might give rise to significant liabilities in the future.

As a general rule, transactions among group companies are recognised at the beginning at their fair value. If the agreed price differs from the fair value, the difference is recognised in reference to the economic reality of the operation. The subsequent valuation is made pursuant to the stipulations of the corresponding regulations.

However, in the case of mergers, splits or non-cash contributions to a business, the constituent elements of the acquired business are valued at the amount corresponding to them after the operation in the con-solidated annual profit of the group or subgroup.

Whenever the Parent, or the group or subgroup and its subsidiary are not involved in the operation hereto, the accounts to consider in this

connection shall be those of the larger group or more subgroup inte-grating the assets and belonging to a Spanish parent company.

In these cases the difference arising between the net value of the as-sets and liabilities of the acquired company, adjusted by the balances of grants, donations and bequests received and value adjustments, and any amount of capital and share premium issued by the acquiring company, is recognized in reserves.

P) BuSINESS COMBINATIONS

Mergers, spin-offs or non-cash contributions between companies of the same group are recognised pursuant to the stipulations for opera-tions between related parties (Note 4.o).

The purchase method of recognition shall be used for every other merger or spin-off operation, and for those business combinations arising from the acquisition of the totality of the company’s assets, or of a portion constituting one or more business.

For business combinations arising as consequence of the purchase of shares of a company, the group recognises the investment pursuant to the stipulations for investments in the companies of the group, multi-group and associated.

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5. Intangible Assets

Changes in intangible assets between 2011 and 2010 were as follows:

2011

EUR thousand

Development Expenditure

Other Intagible Assets

Computer Software

Total

COST:

Balance on 31 December 2010 102,147 148,160 412,695 663,002

Additions 15,121 5,205 43,354 63,680

Disposals / reductions (56) (322) (18,920) (19,298)

Transfers (Note 6 ) (8,376) (9,655) 14,680 (3,351)


ACCUMULATED AMORTISATION:

Balance on 31 December 2010 (16,048) (130,401) (241,361) (387,810)

Amortisation charge (15,429) (1,843) (46,108) (63,380)

Disposals / reductions 55 205 18,307 18,567

Transfers (Note 6 ) 2 10,301 (17) 10,286


Net: 77,416 21,650 182,630 281,696

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2010

Thousand of euros

Development Expenditure

Other Intagible Assets

Computer Software Total

COST:


Loss of control (See note 2.h) - - (1,895) (1,895)

Additions 18,881 4,803 56,802 80,486

Disposals / reductions - (12,012) (10,238) (22,250)

Transfers (Note 6 and 7) (13,530) (52,941) 33,759 (32,712)


ACCUMULATED AMORTISATION :


Loss of control (See note 2.h) - - 1,254 1,254

Amortisation charge (5,600) (2,376) (41,796) (49,772)

Disposals / reductions - 7,130 10,064 17,194

Transfers (Note 6 and 7) (272) 411 188 327


Net: 86,099 17,759 171,334 275,192

2011 Annual report

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Main additions

The main additions in 2011 to “Computer Software” were related to acquisitions and to improvements to and the development of new technology for computer software, in particular in relation to naviga-tion and airport central services.

In 2011 the Parent capitalised EUR 0.62 million (EUR 0.95 million in 2010) relating to finance costs incurred during the development period of intangible assets.

Intagible assets in progress

Of the total capitalised costs on 31 December 2011 and 2010 of the different types of intagibles, assets in progress are included with the following detail:

DescriptionEUR thousand

2011 2010




Total 75,432 99,292

fully amortised intangible assets

On 31 December 2011, intangible assets with an original cost of EUR 317.76 million were fully amortised and are still in use (EUR 292,91 million on 31 December 2010). The detail is as follows:


2011 2010




Total 317,757 292,908

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6. Property, Plant and Equipment

The changes in “Property, Plant and Equipment” in 2011 and 2010 were as follows:

2011

EUR thousand

Land and BuildingsPlants and machinery

Other fixtures, Tools and Furniture

Property, Plant and Equipment in

progress

Other Property, Plant and

EquipmentTotal

COST:

Balance on 31 December 2010 14,389,582 1,953,057 3,736,004 2,118,048 442,228 22,638,919

Additions 571,461 45,202 119,171 649,113 31,932 1,416,879

Disposals / reductions (51,590) (56,008) (20,892) (107,281) (31,429) (267,200)

Transfers (Note 5) 702,334 106,986 297,617 (1,137,923) 34,337 3,351


ACCUMULATED AMORTISATION

Balance on 31 December 2010 (3,393,232) (1,098,643) (1,387,702) - (303,091) (6,182, 68)

Amortisation charge (455,175) (138,258) (266,670) - (37,074) (897,177)

Disposals / reductions 20,757 54,517 15,670 - 31,043 121,987

Transfers (Note 5) (13,017) 2,541 (199) - 389 (10,286)

Balance on 31 December 2011 (3,840,667) (1,179,843) (1,638,901) - (308,733) (6,968,144)

Net: 11,771,120 869,394 2,492,999 1,521,957 168,335 16,823,805

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2010

EUR thousand

Land and BuildingsPlants and machinery

Other fixtures, Tools and Furniture


progress

Other Property, Plant and

EquipmentTotal

COST:


Loss of control (See note 2.h) (13,191) (3,883) (2,988) - (2,741) (22,803)

Additions 318,682 44,794 115,193 944,956 32,637 1,456,262


Transfers (Note 5 and 7) 1,022,196 104,085 362,982 (1,490,072) 33,022 32,213


ACCUMULATED AMORTISATION :

Balance on 31 December 2010 (2,998,681) (999,518) (1,173,155) - (303,266) (5,474,620)

Loss of control (See note 2.h) 4,223 2,290 1,990 - 1,368 9,871

Amortisation charge (420,878) (135,210) (237,724) - (25,519) (819,331)

Disposals / reductions 22,046 34,636 21,481 - 23,576 101,739

Transfers (Note 5 and 7) 58 (841) (294) - 750 (327)

Balance on 31 December 2011 (3,393,232) (1,098,643) (1,387,702) - (303,091) (6,182,668)

Net: 10,996,350 854,414 2,348,302 2,118,048 139,137 16,456,251

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2011 Annual report

The detail of the value of the buildings and land relating to the proper-ties owned by the Group at the end of 2011 and 2010 is as follows:

PropertyEUR thousand

2011 2010

Land 3,599,752 3,313,319

Buildings 12,012,035 11,076,263

Total 15,611,787 14,389,582

At 2011 and 2010 year-end, the subsidiary Aena Desarrollo Internac-ional had arranged a finance lease with BBVA (see Notes 8 and 14) on an automated flight inspection system (console) which is recognised under “Other Items of Property, Plant and Equipment – Computer Hardware”.

Interest expenses incurred in 2011 totalling EUR 35.42 million were capitalised in relation to the financing of property, plant and equip-ment in progress construction and EUR 6.7 million was capitalised in relation to in-house work performed by the Parent and subsidiary Aena Aeropuertos S.A on its property, plant and equipment. Interest expens-es incurred in 2010 totalling EUR 39.97 million were capitalised in rela-tion to the financing of property, plant and equipment in progress con-struction and EUR 7.11 million was capitalised in relation to in-house work performed by the Parent on its property, plant and equipment.

Non-current asset additions

The main additions recognised in 2011 were as follows:

Land and buildings

The additions to “Land” amount to EUR 286 million and relate mainly to the land acquired to carry out expansions at various airports.

The main additions to “Buildings” in 2011 relate to assets of the Vigo Airport, and parking building and technical block for the Vigo Airport, work to construct the new terminal and restoration of airfields at the Alicante Airport, work to expand the apron in the Reus-Costa Brava Airport, and parking building for the Girona and A Coruña airports and the new passenger terminal of the Santander Airport.

Property, Land and Equipment under construction

The main additions in 2011 relate to the expansion of the Santiago, Mála-ga-Costa del Sol, Valencia, Ibiza and Palma de Mallorca airports, and also to Air Navigation technical facilities.

Plant and other items of property, plant and equipment

Additions in 2011 relate, mainly, to fire prevention systems and facility integral management at the Alicante Airport, installation of ventilation and air-condition systems, and installation of fire prevention system at the Menorca Airport, restoration of the ventilation tunnel for airport service and electrical connection for the south cargo module in the Madrid-Barajas Airport, air-conditioning system in the terminal build-ing and, baggage handling and screening system, and expansion of electrical supply capacity in the La Palma Airport, as well as improve-

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2011 Annual report

ments in the reliability of the electrical system and works carried out in the processor terminal building of Barcelona-El Prat.

Disposals

The main disposals in 2011 relate to withdrawals from facilities and other assets in Madrid-Barajas, La Palma, Gran Canaria, Tenerife South and Barcelona-El Prat, the renewal of computer hardware and other fa-cilities of the Central Air Traffic Control Services and the Center-North Regional Division. Also worthy of note is the disposal of the temporary modular parking at the Vigo Airport.

Disposals in 2011 include, essentially, the following items, for which the loss incurred upon disposal was not recognised in the income statement:

• Reversals of provisions recognised in prior years for environmental risks of EUR 39,216 thousand in order to comply with prevailing legislation (see Note 13.1).

Impairment

The Parent considered that there were no indications of impairment on 31 December 2011 that would require the recognition of an impair-ment loss.

The subsidiary Aena Aeropuertos S.A. took the “Property, Plant, and Equipment” impairment test and no adjustments were identified on 31 December 2011.

Grants received

On 31 December 2011, the Parent received grants in connection with its property, plant and equipment and intangible assets for an accumu-lated amount of EUR 465.9 million net of tax (450.4 in 2010), of which EUR 45.2 million correspond to additions in the year (50.0 in 2010) (see Note 12-g). The gross cost of the assets associated with these grants is EUR 2,319.4 million, of which EUR 2,304.7 million relate to property, plant and equipment, and EUR 14.7 million to intangible assets.

Additionally, the Parent has grants engaged and not executed for a total amount of EUR 102,601 thousand.

Limitations

The assets assigned to the consolidated Group relating to the Com-pany Aeropuertos Españoles y Navegación Aérea, are public domain assets with respect to which Aeropuertos Españoles y Navegación Aé-rea does not have title or powers of disposal or encumbrance.

Land, buildings and facilities brought in to the subsidiary Aena Aerop-uertos S.A. have lost the status of goods in the public domain due to the reversal carried out by article 9 of the Royal Decree-law 13/2011 December 3, which provides that all State public domain goods at-tached to the Entidad Pública Empresarial Aena not related to air navi-gation services, including those for aerodrome air traffic services, will cease to be of public domain, although the expropriation aim is not altered, so the reversal will not be necessary.

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2011 Annual report

fully amortised property, plant and equipment items

On 31 December 2011, the property, plant and equipment in use with an original cost of EUR 1,790.87 million (EUR 1,582.52 million in 2010) were fully amortised and are still in use, the detail being as follows:


2011 2010

Buildings 760,217 603,919

Plant and machinery 460,661 443,489

Other fixtures, tools and furniture 401,569 357,426

Other property, plant and equipment items 168,426 177,687

Total 1,790,873 1,582,521

Obligations

On 31 December 2011, the investments yet to be performed amounted to approximately EUR 1,019 million (EUR 784 million in 2010), comprising both contracts that have not yet been formalised and firm contracts not yet executed.

Insurance policies

The Group takes out insurance policies to sufficiently cover the pos-sible risks to which its property, plant and equipment are subject. On 31 December 2011 and 31 December 2010, property, plant and equip-ment were fully insured against such risks.

7. Investment Property

“Investment Property” in the consolidated balance sheet includes the value of buildings, other structures and fixtures held to earn rentals, with the exception of land used by the subsidiary Centros Logísticos Aeroportuarios, S.A for its activity.

The changes in 2011 and 2010 in “Investment Property” in the con-solidated balance sheet and the most significant information affecting this heading were as follows:

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2011 Annual report

2011

EUR thousand

Land and Buildings Plant Other fixtures Total

COST:

Balance on 31 December 2010 111,533 5,319 26 116,878

Additions 788 734 - 1,522


ACCUMULATED DEPRECIATION:

Balance on 31 December 2010 (26,518) (2,332) (17) (28,867)

Depreciation charge (3,155) (305) (2) (3,462)


Net: 82,648 3,416 7 86,071

2010

EUR thousand

Land and Buildings Plant Other fixtures Total

COST:

Balance on 1 January 2009 111,343 4,940 26 116,309

Additions 95 286 - 381

Disposals or reductions (251) (60) - (311)

Transfers (Note 5 and 6) 346 153 - 499


ACCUMULATED DEPRECIATION:

Balance on 1 January 2009 (23,405) (2,085) (14) (25,504)

Depreciation charge (3,136) (277) (3) (3,416)

Disposals or reductions 23 30 - 53


Net: 85,015 2,987 9 88,011

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2011 Annual report

Investment property additions

The main additions in 2011 relate to technology facilities associated with energy efficiency and sustainable development and other techni-cal facilities in the central services buildings of the subsidiary Centros Logísticos Aeroportuarios, S.A.

Investment property obligations

At 2011 year-end, no investment property items were subject to guarantees, and there were no purchase commitments associated to them.

Insurance policies

The Group takes out insurance policies to cover the possible risks to which its investment property is subject. At 2011 year-end, the Group was reasonably insured against such risks.

fully depreciated investment property

On 31 December 2011 and 31 December 2010 there were no fully depreciated investment property items that were still in use.

8. Leases

fINANCIAL LEASES

At 2011 year-end, the subsidiary Aena Desarrollo Internacional had arranged a finance lease on an automated flight inspection system (console) which is recognised under “Property, Plant and Equipment” in the accompanying consolidated balance sheet on 31 December 2011 (see Note 6).

On 31 December 2011, the amount of the minimum lease payments payable in the future, excluding inflation increases or other contin-gent payments arising from the aforementioned finance lease, were as follows:

Minimum Finance Lease PaymentsEUR thousand

2011 2010

Within one year 465 441

Between one and five years 2,124 2,016

After five years - 574

Total 2,589 3,031

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2011 Annual report

On 31 December 2011 the interest maturing on this agreement in coming years, was as follows:

Interest-maturityEUR thousand

2011 2010


Between one and five years 77 93

After five years - 3

Total 120 137

OPERATING LEASES

The Parent uses various assets under operating leases arranged with third parties, of which the most noteworthy are detailed below, together with the main characteristics of the related contracts:

Asset LocationLease Expiry

date

Annual Lease Payments ex-

cluding VAT in EUR thousand

Comments

Pegaso Building (*)

Madrid 15/11/2016 1,987Increase agreed in con-tract. (5.55% for 2012).

Juan Ignacio Luca de Tena Building

Madrid 15/12/2011 2,246 Contract ends in 2011.

Merrimack 4 Building

Madrid 30/11/2011 2,063 Contract ends in 2011.

(*) Payments to begin in February 2012.

The subsidiary Aena Aeropuertos S.A. uses various assets under oper-ating leases arranged with third parties, of which the most notewor-thy are detailed below, together with the main characteristics of the related contracts:

Asset LocationLease Expiry

date

Annual Lease Payments ex-

cluding VAT in EUR thousand

Comments

PioveraBuilding

Madrid 31/01/2016 3,874Payments subject toreview based on CPI

SENASABuilding 2

Madrid 31/12/2012 140Payments subject toreview based on CPI

The amount of the minimum lease payments payable in the future for non-cancellable operating lease are the following:

Operating LeasesEUR thousand

2011

Within one year 4,014

Between one and five years 20,069

Total 24,083

The subsidiary Aena Aeropuertos S.A. leases several shops and stores under non-cancellable operating lease contracts. The duration of the contracts herein ranges between five and ten years, and most of them are renewable upon expiry date under market conditions.

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2011 Annual report

The amount of minimum lease future proceeds for non-cancellable operating lease are the following:

Operating LeaseEUR thousand

2011

Within one year 673,707

Between one and five years 3,197,297

Total 3,871,004

At the end of 2011, the subsidiary CLASA had contracted with tenants for the following minimum lease payments, based on the leases cur-rently in force, without taking into account the charging of common expenses, future increases in line with the CPI or future contractual lease payment revisions:

Operating LeasesMinimum Payments

EUR thousand

2011 2010

Within one year 2,148 1,621

Between one and five years 8,962 2,512

After five years 432,346 410,845

Total 443,456 414,978

These leases relate mainly to the assets included under “Invest-ment Property” with an original cost of EUR 118,400 thousand (EUR 116,878 thousand in 2010), receiving annual rental income of EUR 17,710 thousand (EUR 18,158 thousand in 2010), with total operat-ing expenses of EUR 5,116 thousand (EUR 4,776 thousand in 2010). The total built area measures 137 thousand square metres.

9. Financial Assets

9.1. NON-CuRRENT INVESTMENTS IN GROuP COMPANIES AND ASSOCIATES

Investments in companies accounted for using the equity method

The detail and changes in “Investments in companies accounted for using the equity method” in 2011 and 2010 are as follows:

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2011 Annual report

2011

EUR thousand

CompanyBalance on

31.12.10 Share of results of

investeesDividends paid Exchange differences Other

Balance on 31.12.11

RAESA 2,129 828 (1,062) - - 1,895

AMP 70,336 2,869 (5,121) (6,625) (96) 61,363

SACSA 1,699 1,410 (586) (14) 45 2,554

ACSA 1,002 1,708 (1,609) (36) 26 1,091

AEROCALI 2,070 891 (920) 52 (66) 2,027

INECO 41,620 4,248 (7,241) - - 38,627

118,856 11,954 (16,539) (6,623) (91) 107,557

The exchange differences generated in 2011 for EUR 6,623 thousand relate to the difference between the balance for this item between 2010 (EUR 681 thousand) and 2011 (loss of EUR 5,942 thousand). See Note 12.f.

2010

EUR thousand

CompanyBalance at 31.12.09on

Share of results of investees

Dividends paid Exchange differences OtherBalance on

31.12.10

RAESA 2,862 1,306 (2,039) - - 2,129

AMP 56,588 5,966 - 7,920 (138) 70,336

SACSA 1,308 1,516 (1,507) 130 252 1,699

ACSA 628 1,817 (1,588) 19 126 1,002

AEROCALI 1,865 987 (1,082) 117 183 2,070

INECO - 6,305 (8,062) - 43,377 41,620

TIFSA 16,507 - - - (16,507) -

79,758 17,897 (14,278) 8,186 27,293 118,856

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2011 Annual report

The balance on 31 December 2011 and 2010 includes the goodwill on consolidation of the companies accounted for using the equity method, net of accumulated amortisation, arising on the acquisition in 2006 of the additional 7.83% stake in AMP for EUR 2,126 thousand.

9.2. NON-CuRRENT fINANCIAL ASSETS

The balance of the heading “Non-current financial assets” at 2011 and 2010 year-end is as follows:

a) Equity instruments

A detail of the most significant equity instruments is as follows:

Name and location Line of businessFraction of Direct

Capital (%)Owner of the

Stake

Barcelona Regional Agencia Metropolitana de Desarrollo Urbanístico e Infraestructuras, S.A.Edificio Centreservei, Zona FrancaCarrer 60, 25-27. Barcelona

Analyses and prospecting in relation to urban development, regional and environmental matters. Design, development, management, implementation, execution and operation of, and consulting on, all manner of construction work, buildings and urban infrastruc-tures and systems in the metropolitan area.

11.76 Aena Aeropuertos S.A.

GroupEAD Europe S.L Juan Ignacio Luca de Tena 14 Madrid

Operation of a database system for aeronautical information systems. Development and implementation of changes in and improvements to the database and related consulting services.

36 EPE AENA

Grupo Navegación por Satélite Sistemas y Servicios, S.L. C/ Gobelas nº41 Madrid

Development, implementation, operation, exploitation and marketing of services related to the global satellite navigation system currently known as Galileo.

19.30 EPE AENA

Airport Concessions and Development Limited (ACDL). 10, Upper Bank St- London – U.K.

Financial asset management of the TBI airport group. 10Aena Desarrollo

Internacional S.A.

European Satellite Service Provider, SAS (ESSP SAS). Toulose - Francia

Development of satellite navigation system. 16.67Aena Desarrollo

Internacional S.A.

Non-current financial assets EUR thousand

2011 2010

Equity instruments 58,333 58,351

Derivatives (Note 10) - 1,219

Long-term deposits and guarantees 1,388 1,388

Total 59,721 60,958

185


2011 Annual report

The detail and changes in the most significant equity instruments in the accompanying consolidated balance sheet on 31 December 2011 are as follows:

EUR thousand

Balance on

31.12.10Disposals

Balance on 31.12.11

Equity instuments

Equity instruments available for sale financial assets measured at cost:

Cost

Airport Concessions and Development Limited (ACDL) 78,596 - 78,596

European Satellite Services Provider (ESSP EEIG) 18 (18) -

European Satellite Services Provider, SAS (ESSP SAS) 167 - 167

Barcelona Regional Agencia Metropolitana de Desarrollo Urbanístico e Infraestructuras, S.A. 180 - 180

GroupEAD Europe S.L. 360 - 360

Grupo Navegación por Satélite Sistemas y Servicios, S.L. 198 - 198

Empresa para la Gestión de Residuos Industriales, S.A.U. (EMGRISA) 6 - 6

Impairment:

Airport Concessions and Development Limited (ACDL) (21,174) - (21,174)

Total investment in “Equity Instruments” 58,351 (18) 58,333

186


2011 Annual report

On 23 December, 2011 ESSP EEIG, owned by the subsidiary Aena Desarrollo Internacional, S.A., was disposed of.

b) Transactions and balances with companies accounted for us-ing the equity method

The breakdown of receivables and payables and the detail of the trans-actions performed with companies accounted for using the equity method on 31 December 2011 and 31 December 2010 is:

2011

EUR thousand

Amounts ReceivablePayable to companies accounted

for using the equity methodSundry Accounts

PayableNon-current asset

purchasesIncome from services

providedExpenses for services

received

INECO 199 19,778 13,902 37,824 222 31,122

RAESA 4,949 - 159 - 17,933 576

ACSA 27 - - - 298 -

SACSA 52 - - - 417 -

AMP 1,146 - - - 3,196 -

AEROCALI 15 - - - 256 -

6,388 19,778 14,061 37,824 22,322 31,698

2010

EUR thousand

Amounts ReceivablePayable to companies account-ed for using the equity method

Sundry Accounts Payable

Non-current asset purchases

Income from services provided

Expenses for services received

INECO 24 15,045 10,606 39,594 207 27,797

RAESA 5,182 - 94 - 18,009 594

ACSA 24 - - - 320 -

SACSA 30 - - - 445 -

AMP 915 2,910 - - 2,820 -

AEROCALI 15 - - - 433 -

GAP 37 - - - 40 -

6,227 17,955 10,700 39,594 22,274 28,391

187


2011 Annual report

9.3 CuRRENT fINANCIAL ASSETS

The balance of “Current Financial Assets” at the end of 2011 and 2010 was as follows:

Current Financial AssetsEUR thousand

2011 2010

Loans to companies 511 1,540

Short-term deposits and guarantee 4,393 4,966

Other financial assets 5,054 8,136

Total 9,958 14,642

The subsidiary Aena Desarrollo Internacional includes under “Other Financial Assets” a credit account amounting to EUR 44 thousand. It also includes the following short-term deposits, and the related ac-crued interest receivable, denominated in US dollars and arranged with the following banks, all of which mature within one year and earn interest at a market rate:

2011

USD thousands EUR thousand

Banco Popular 1,339 1,720

Banesto 968 1,550

Banco Madrid - 719

Bankinter - 1,018

Total 2,307 5,007

2010

USD thousand EUR thousand

Banco Popular 2,550 1,925

Banesto 6,780 5,092

Total 9,330 7,017

9.4 INfORMATION ON THE NATuRE AND LEVEL Of RISK Of fINANCIAL INSTRuMENTS

The main principle of the financial policies of the companies compris-ing the Aena Group is based on their being centralised at the Admin-istration and Finance department, to the extent that all the financial assets and liabilities are arranged and managed by this department. The main financial risks are as follows:


The Company’s objective in relation to interest rate risk management is to optimise the finance costs within the risk limits established. The Group does not usually perform commercial transactions in curren-cies other than the euro (unlike subsidiaries such as Aena Desarrollo Internacional), and accordingly, the finance cost risk is focused on interest rate risk in the case of the Parent, the risk variables being three month Euribor (used for non-current payables) and one-month Euribor (used in credit facilities).

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2011 Annual report

The finance cost risk is also calculated for the duration of the Plurian-nual Action Plan (PAP), establishing interest rate performance scenari-os for the period in question.

In 2011 and 2010, the Company arranged transactions to hedge the risk of changes in interest rates, as detailed (Note 10).

b) Liquidity risk

The main risk variables are: limitations in the financing markets, in-crease in forecast investment and decrease in cash-flow generation.

In order to maintain sufficient liquidity to meet the financial require-ments over a minimum of twelve months, a long-term financing policy was established by signing agreements or framework agree-ments with institutions such as Instituto de Crédito Oficial and the European Investment Bank, and by arranging short- and medium-term liquidity lines.

This risk is managed by closely monitoring the maturity schedule of the Group’s financial payables, and through the proactive manage-ment and maintenance of credit lines that enable the projected liquidity needs to be covered.

Lastly, the Group makes cash projections on a systematic basis in or-der to assess its cash needs. This liquidity policy ensures the fulfilment of the payment obligations assumed without having to resort to high interest-bearing financing, thereby enabling the liquidity position to be maintained on an ongoing basis.

c) Credit risk

The risk variable is the credit rating of the counterparty, and, accord-ingly, the objective is focused on minimising the risk of counterparty non-compliance without adversely affecting the price. In general, the Parent holds its cash and cash equivalents at banks with high credit ratings.

d) Exchange risk

The subsidiary Aena Desarrolllo Internacional is exposed to exchange rate fluctuations which might affect its sales, profit, equity and cash flows. In this respect, this subsidiary has arranged a cash flow hedge as a result of changes in exchange rates, as described in Note 10.

10. Derivative financial instruments

The Group uses derivative financial instruments to hedge the risks to which its business activities, operations and future cash flows are ex-posed.

ExCHANGE RATE

The Group has arranged a hedging instrument for cash flows arising from changes in exchange rates in order to hedge the risk associated with cash flows in US dollars between the collections received by the

189


2011 Annual report

subsidiary Aena Desarrollo Internacional in US dollars for the provision of certain services under the various agreements relating to the man-agement of Mexican airports, and the payments (repayments) of the loan arranged in US dollars with Banco Santander which is recognised

under “Equity- Hedges” under the Net Equity of the accompanying consolidated balance sheet on 31 December 2011 and 31 December 2010, the detail being as follows:

2011

Classification Maturity (*)Ineffectiveness recognised

in 2011 Profit or Loss (EUR thousand)

Fair Value recognised in “Equity” on 31.12.11

(EUR thousand)

Foreign currency derivative Foreign currency hedge 08.10.2014 8 349

(*) The hedging instrument matures with the year in which the cash flows affecting the consolidated income statement will foreseeably occur.

2010

Classification Maturity (*)Ineffectiveness recognised

in 2011 Profit or Loss (EUR thousand)

Fair Value recognised in “Equity” on 31.12.11

(EUR thousand)

Foreign currency derivative Foreign currency hedge 08.10.2014 3 562

(*) The hedging instrument matures with the year in which the cash flows affecting the consolidated income statement will foreseeably occur.

In 2011 and 2010, the subsidiary Aena Desarrollo Internacional, S.A. complied with the requirements detailed in Note 4-f to be able to classify this financial instrument as a hedge. Specifically, these instru-

ments were formally designated as hedges and the effectiveness of the hedging relationship was verified.

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2011 Annual report

INTEREST RATE

On 1 October 2007, subsidiary Aena Desarrollo Internacional, S.A. signed with “La Caixa” a derivative of interest rates, in order to control and reduce the potential negative impact in its results of fluctuations of floating interest rates. In particular this derivative covers the effect of fluctuations in interest rates on the financial burden associated with

the loan granted to the company by “La Caixa”. As this derivative fi-nancial instrument does not meet the conditions to be recognized as a financial hedging instrument, it was recognised in the “Derivatives” account of the Balance Sheet current and non- current liabilities on 31 December 2011 and 2010 respectively.

The main features of this derivative financial instrument are as follows:

2011

Classification TypeAmount

arranged (EUR thousand)

MaturityFair Value recognised in

“Current Liabilities” on 31-12-11 (EUR thousand)

Interest rate swap Interest rate hedgeFixed (4.83%) to floating interest rate

swap2,000 01.10.2012 49

2010

Classification TypeAmount

arranged (EUR thousand)

MaturityFair Value recognised in

“Current Liabilities” on 31-12-10 (EUR thousand)

Interest rate swap Interest rate hedgeFixed (4.83%) to floating interest rate

swap2,000 01.10.2012 105

At 2011 year-end, EUR 56 thousand was recognised in relation to changes in the fair value of this derivative financial instrument (31 December 2010: EUR 348 thousand) under “Changes in Fair Value of Financial Instruments” in the accompanying consolidated income statement for 2011.

The Company arranged in fiscal years 2011 and 2010 certain interest-rate hedging financial instruments, the detail of which is as follows:

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2011 Annual report

2011

Classification TypeAmount arranged

(EUR thousand)Maturity

Fair Value recognised in “Current Liabilities”

on 31-12-11(EUR thousand)

Fair Value recognised in “Non-current

Liabilities” on 31-12-11

(EUR thousand)

Fair Value recognised in “Equity” on

31-12-11(EUR thousand)

Interest rate swap Interest rate hedgeFloating (3-month

Euribor) tofixed (2.8025%)

1,194,391 15.03.2012

23,525 12,381 (25,134)Interest rate swap Interest rate hedgeFloating (3-month


1,119,147 15.03.2013

Interest rate swap Interest rate hedgeFloating (3-month


255,000 15.03.2016

2010

Classification TypeAmount arranged

(EUR thousand)Maturity

Fair Value recog-nised in “Current

Liabilities” on 31-12-10

(EUR thousand)

Fair Value recog-nised in “Non-

current Liabilities” on 31-12-10

(EUR thousand)

Fair Value recog-nised in “Non-

current Assets on 31-12-10

(EUR thousand)

Fair Value recog-nised in “Equity”

on 31-12-10(EUR thousand)

Interest rate swapInterest rate

hedge

Fixed (4.83%) to floating

interest rate swap2,000 01.10.2012 - 105 - -


hedge

Floating (3-month Euribor) to

fixed (2.8025%)1,194,391 15.03.2012

18,996 11,967 1,219 (20,820)Interest rate swapInterest rate

hedge


fixed (2.8025%)1,119,147 15.03.2013


hedge


fixed (2.57%)255,000 15.03.2016

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2011 Annual report

11. Inventories

The breakdown of “Inventories” is as follows:

EUR thousand

2011 2010

Spare parts 6,505 6,901

Inventory write-downs (134) (134)

Supplier Advances 26 -

Total 6,397 6,767

12. Equity and Shareholders’ equity

a) Equity and assigned assets

When the Parent was formed, and in order to provide airport and air traffic control services, it was assigned facilities and properties, mainly by the Ministry of Transport, Tourism and Communications (currently the Ministry for Development), the Ministry of Defence and the former Spanish Public Airports and Aviation Agency. Therefore, the assigned assets account relates to assets that did not give rise to any cost for the Company.

The assets assigned to the Parent at the time of its formation, based on the appraisal of independent professional experts, amounted to EUR 2,831.6 million.

The equity account includes, in addition to other subsequent changes amounting to EUR 18.7 million, EUR 248.7 million representing the valuation difference between the rights and obligations to which the Parent was subrogated at the time of its formation.

b) Bylaw reserves

These reserves were recognised in accordance with the Parent’s by-laws, and their objective is to finance future investments in airport and air traffic control infrastructures.

c) Revaluation reserve Royal Decree-Law 7/1996 of 7 June 1996

Pursuant to Royal Decree-Law 7/1996, of 7 June, on urgent tax meas-ures and measures to develop and deregulate economic activities, in 1996 the Company revalued its property, plant and equipment. The initial net revaluation surplus amounted to EUR 300.9 million.

d) Reserves at consolidated companies and at companies ac-counted for using the equity method

The detail, by company, on 31 December 2011 and 2010, of the “Re-serves at Fully Consolidated Companies” and “Reserves at Companies Accounted For Using the Equity Method” is as follows:

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2011 Annual report

CompanyEUR thousand

2011 2010

Consolidated companies:

CRIDA 587 406

CLASA 16,383 15,921

Aena Desarrollo Internacional (13,065) (19,264)

3,905 (2,937)

Companies accounted for using the equity method:

INECO 12,632 13,568

SACSA 1,056 606

AMP 10,920 10,171

ACSA 6 6

AEROCALI 561 561

RAESA 1,509 1,509

26,684 26,421

30,589 23,484

e) Profit/loss attributable to the Company

The contribution of each company included in the scope of consolida-tion to consolidated profit or loss, indicating the portion relating to minority interests, was as follows:

2011

EUR thousand

CompanyConsolidated

Profit/Loss

Loss attributable to minority

interests

Loss attributable to the Parent

EPE AENA 48,961 - 48,961

Aena Aeropuertos, S.A. (94,622) - (94,622)

Aena Desarrollo Internacional, S.A. 1,712 - 1,712

CRIDA 1,573 (404) 1,169

CLASA 4,195 - 4,195

(38,181) (404) (38,585)

Share of results of companies accounted for using the equity method:

RAESA 828 - 828

AMP 2,869 - 2,869

SACSA 1,410 - 1,410

ACSA 1,708 - 1,708

AEROCALI 891 - 891

INECO 4,248 - 4,248

11,954 - 11,954

Total (26,227) (404) (26,631)

194


2011 Annual report

2010

EUR thousand

CompanyConsolidated

Profit/Loss

Loss attributable to minority

interests

Loss attributable to the Parent

AENA (169,145) - (169,145)

Aena Desarrollo Internacional, S.A. 1,256 - 1,256

CRIDA 204 (52) 152

CLASA 4,748 - 4,748

(162,937) (52) (162,989)

Share of results of companies accounted for using the equity method:

RAESA 1,306 - 1,306

AMP 5,966 - 5,966

SACSA 1,516 - 1,516

ACSA 1,817 - 1,817

AEROCALI 987 - 987

INECO 6,305 - 6,505

17,897 - 17,897

Total (145,040) (52) (145,092)

f) Exchange differences

Exchange differences relate in full to equity-accounted investees of Aena Desarrollo Internacional, The breakdown, by company, is as fol-lows:

CompanyEUR thousand

2011 2010

AMP (6,426) 199

AEROCALI 226 173

SACSA 200 215

ACSA 58 94

Total (5,942) 681

g) Grants, donations or gifts and bequests received

The breakdown on 31 December 2011 and 2010 is as follows:

Item EUR thousand

2011 2010

Asset-related grants from official European Agen-cies

463,495 446,916

Other 2,365 2,354

465,860 449,270

195


2011 Annual report

Asset-related grants from official European Agencies

The changes, net of taxes, in this heading in 2011 and 2010 were as follows:

ItemEUR thousand

2011 2010

Opening balance 446,916 419,494

Adjustments (2,108) -

Additions to ERDF Grants 45,405 49,977

Additions to other grants 1,840 194

Disposals Other Grants (426) -

Allocation to income (28,132) (22,749)

Closing balance 463,495 446,916

These grants are allocated to income in proportion to the period de-preciation taken on the assets to which they relate.

ERDf grants

The detail of the advances received in 2011 and 2010 for operating programmes is as follows (in EUR thousand):

Received

Item 2011 2010

Other Feder 6 -

Prog Oper. C. Andalucía 11,937 888

Prog Oper. C. Extremadura 626 4,366

Prog Oper. C. Galicia 23,938 8,377

Prog Oper. C. Canarias 42,906 25,305

Prog. Oper. C. Castilla-León - 10,099

Prog. Oper. C. Murcia 91 10,719

Prog. Oper. C. Valencia - 9,265

Total ERDF fund additions 79,504 69,019

At 2011 and 2010 year-end, the Parent had fulfilled all the conditions established for receiving and using the grants detailed above.

196


2011 Annual report

h) External Partners

Changes related to minority interests of each subsidiary were as fol-lows:

2011

CompanyEUR thousand

Balance on 31.12.10

Ownership interest

OtherBalance on

31.12.11

CRIDA 359 404 10 773

359 404 10 773

2010

Company

EUR thousand

Balance on 31.12.09

Ownership interest

Loss of control (see Note 2.h)

Balance on 31.12.10

INECO 13,220 - (13,220) -

CRIDA 276 52 31 359

13,496 52 (13,189) 359

13. Provisions and Contingencies13.1 LONG-TERM PROVISIONS

The changes in the long-term provision accounts in 2011 were as fol-lows:

EUR thousand

Provisions for long-term em-ployee benefit

obligations

Other provisions

Provisions for environmental

costsTotal

Opening balance 2011

417,278 56,240 161,801 635,319

Additions 35,579 133,356 8,193 177,128

Reversals/Excessive (175,896) (8,919) (39,126) (223,941)

Amounts used (593) (28,922) - (29,515)

Transfer to other accounts

- 11,148 - 11,148

Transfer to short term (27,500) - (31,835) (59,335)

Closing balance 2011 248,868 162,903 99,033 510,804

The Group classifies as current liabilities the items recognised under “Provisions for Contingencies and Charges” when it is foreseeable that they may be claimable in the following period. Therefore, trans-fers from the provisions for third-party liability and for enviromental costs are recognised under “Short-Term Provisions” in the accompany-ing consolidated balance sheet on 31 December 2011 (see Note 13.2)

197


2011 Annual report

a) Provisions for long-term employee benefit obligations

The changes in 2011 of the items in these heading were as follows:

EUR thousand

BonusesParticipation

bonusesSpecial paid

leaveTotal

Opening balance 2011 9,636 55,841 351,801 417,278

Additions 971 - 34,608 35,579

Reversals (1,203) (25,166) (149,527) (175,896)

Amounts used (593) - - (593)

Transfer to short term - - (27,500) (27,500)

Closing balance 2011 8,811 30,675 209,382 248,868

Bonuses

“Bonuses” relates mainly to the provision recognised for long-service bonuses amounting to EUR 971 thousand in 2011 and of which EUR 402 thousand relate to the associated finance cost.

Participation bonuses

In 2011 the amounts accrued in prior years in relation to remunera-tion earned from agreements between Aena and the Air Traffic Con-trollers’ Labour Union prior to the entry into force of Royal Decree-Law 1/2010, of 5 February, were transferred in full to “Participation Bonuses” as it is considered that they will not be paid in the coming twelve months.

Special Paid Leave and Active Reserve (AR)

Certain air traffic controllers have availed themselves of special paid leave pursuant to previous collective labour agreements and, since they fulfil certain requirements, these workers are entitled to receive their basic remuneration update annually, until they reach the age of retirement.

As a result of the publication of the arbitral award on 27 February 2011 and the approval of a new collective agreement, the status of special paid leave was replaced by that of the active reserve. The re-quirements for workers to avail themselves thereof are more restrictive and the remuneration received is reduced to 75% of the ordinary fixed salary received in the last twelve months with certain limits.

Based on the actuarial studies available, on 31 December 2011, the accrued liability to the employees availing themselves of special paid leave amounted to EUR 140,106 thousand.

The Parent estimated the percentage of current workers that will avail themselves of this special reserve status and, on this basis and on the basis of the actuarial study, calculated the accrued actuarial liability in this connection on 31 December 2011 amounted to EUR 96,776 thousand.

On 31 December 2011, a long-term provision of EUR 209,382 thou-sand and a short-term provision of EUR 27,500 thousand had been recognised in this connection (see Note 13.2).

198


2011 Annual report

Other employee benefit obligations

Under Article 150 of the Company’s Third Collective Labour Agree-ment, when employees retire or are granted permanent sick leave, they will receive an amount equal to three monthly salary payments calculated on the basis of their basic pay plus their long-service bonus.

Pursuant to the legislation relating to the externalisation of pension commitments and to the agreement between Aena management and the labour union representatives to set up a pension plan, the defined-contribution pension plan for Aena’s employees was set up on 28 July 2003.

Any employee who has to his credit at least 360 calendar days of serv-ice recognised by Aena may become a participant of the Aena Employ-ees Pension Plan. The pension plan covers the contingencies of retire-ment, disability (referring to the degrees of full or absolute permanent incapacity for work and comprehensive disability) and death.

In 2011, the Parent and the subisdiary Aena Aeropuertos, S.A. made contributions amounting to EUR 7.5 million to this Pension Fund.

b) Other Provisions

Changes during 2011 were as folllows:

EUR thousand

Provisions for third-party liabilities

Tax provision

Expropiations and interest

chargeTotal

Opening balance 2011

2,307 53,933 - 56,240

Additions 4,019 16,872 112,465 133,356

Reversions (2,222) (6,697) - (8,919)

Amounts used (1,371) (27,551) - (28,922)

Transfer to other acounts

- 11,148 - 11,148

Closing balance 2011

2,733 47,705 112,465 162,903

199


2011 Annual report

Provision for third-party liabilities

This heading also includes EUR 2,733 thousand in 2011, relating to the estimated amount required for probable or certain third-party liabilities or obligations arising from litigation in progress or from outstanding indemnity payments or obligations. The Company’s di-rectors consider that the provision is sufficient to cover the risks of litigation in progress, third-party liability and current commitments known at the date of preparation of these financial statements and do not consider that the current claims, taken as a whole, will give rise to additional liabilities that might have a material effect on the 2011 financial statements.

Tax Provision

At 2011 year-end the Tax Provision relates to EUR 47,705 thousand of local taxes in relation to which the Subsidiary Aena Aeropuertos S.A. is not in agreement with the settlement received from the tax authorities. These settlements were appealed and it is uncertain, on 31 December 2011, what the definitive amount will be and when it will be definitively settled.

Provision for expropiation and interest charges

The Provision for expropriation and interest charges relates the amount of the difference between the fair prices paid for lands expropriat-ed for airport expansions and the estimated prices to be paid in case claims over the fair price paid, went to court. Also, interest charges

based on the current interest rate, were recorded over those fair prices differences. Additionally, the short-term provisions for contingencies and charges (see Note 13.2) includes a provision totalling EUR 230.4 million to cover these liabilities maturing in under 12 months.

c) “Provisions for Environmental Costs”

At 2011 year-end, this heading included EUR 99 million recognised to cover the costs foreseen to carry out the sound insulation work re-quired to meet the environmental legislation in force. Short-term provi-sions for contingencies and charges include a provision totalling EUR 39 million to cover these liabilities maturing in under 12 months (see Note 13.2). The amounts recognised in this connection are capitalised as an addition to the cost of the investment, since they are costs neces-sarily incurred to develop the projects.

200


2011 Annual report

13.2 SHORT -TERM PROVISIONS

The changes in 2011 were as follows:

EUR thousand

Special Paid Leave (Note 13.1)

Retribution control

Expropiations and interest charges

(Note 13.1)Other Provisions

Environmental Provisions

(Note 13.1)Total

Opening balance 2011 30,500 40,903 82,252 10,071 22,314 186,040

Additions - 61,951 170,561 39,175 1,196 272,883

Excessive / Provisions (1,829) - - - - (1,829)

Amounts used (28,671) (5,416) (22,446) (6,796) (16,033) (79,362)

Transfer to other accounts - - - (67) (40) (107)

Transfer to short term 27,500 - - - 31,835 59,335

Closing balance 2011 27,500 97,438 230,367 42,383 39,272 436,960

a) Provision for retribution control

On 13 August 2010, the Parent reached a base agreement with the air traffic controllers in the negotiations regarding the new collective labour agreement in which the operational controllers were guaran-teed a total salary package in 2010 of EUR 480 million. It was also stipulated that if at year-end this limit had not been reached, the difference would be used to recognise a provision for a productivity bonus, the composition and distribution of which would be agreed upon by the parties.

With the publication of the arbitral award on 27 February 2011 and the adoption of the new collective agreement, a new compensation guaranteed for operating controllers hired prior to 5 February 2010 an average wage of EUR 200 thousand and a salary at least equal to that received during 2010 for non-operating controllers, which altogether amounts to a maximum of EUR 480 million for 2011 wage bill, as stipulated in the frame agreement signed by the parties on 13 August 2010. For the calculation of the annual wage bill, new controllers shall be added every year, in addition to the amounts referred to above.

201


2011 Annual report

On 31 December 2011, a gap of EUR 97.4 million was estimated to reach the guaranteed wage bill, therefore, provisions of EUR 36.1 mil-lion for 2010, and EUR 61.3 million were charged.

b) Other provisions

This heading includes the amount of certain subsidies granted to air-lines operating in Canary Islands, Balearic Islands, Ceuta and Melilla airports. These subsidies were included in the 2010 and 2011 State Budgets as measures to foster air transport in those regions.

13.3 CONTINGENT ASSETS

Adjustment mechanism

This item includes the rights (or obligations) arising from variances in the estimated results used to set the unit charges for en-route naviga-tion aids and the actual results ultimately obtained in the provision of en-route air navigation services. The aforementioned rights and obliga-tions are recovered through future changes between two to six years after they arise. The Parent considers that this type of asset does not meet all the requirements for recognition in the balance sheet since its recoverability depends on future events such as changes in rates and air traffic.

On 31 December 2011 the balance in respect of this item amounted to EUR 62,503 thousand ( EUR 98,582 thousand on 31 December 2010).

Also, in accordance with Commission Regulation (EC) no. 1794/2006, of 6 December 2006, revised by Regulation 1191/2010, laying down a common charging scheme for air navigation services, the non-recur-ring effects resulting from the introduction of International Accounting Standards may be included as an addition to the route charge over a period not exceeding 15 years. Consequently, at 2011 year-end, the Parent expects to be able to recover EUR 64,000 thousand (EUR 243,304 thousand in 2010) through future charges.

202


2011 Annual report

14. Bank borrowings and other financial liabilities

a) Non-current and current payables

The details of “Non-current payables” and “Non-current and current payables” on 31 December 2011 is as follows:

EUR thousand

2011 2010

Long term Short term Long term Short term

Loans 11,636,859 663,853 11,750,592 334,645

Credits - 216,224 - 108,492

Unmatured accrued interest - 81,528 - 77,471

Obligations under finance leases (Note 8)

2,124 465 2,589 441

Derivatives (Note 10) 12,381 23,574 12,072 18,996

Non-current asset suppliers - 682,413 - 766,536

Guarantees and deposits received

4,601 19,011 2,164 17,286

Other financial liabilities 2 1 86 -

Total 11,655,967 1,687,069 11,767,503 1,323,867

Approximately 59% of the loans and credits were arranged with fixed annual interest rates of between 1.70% and 4.88%, with the remain-der arranged at floating rates generally tied to the Euribor.

The Company has undertaken to comply with certain general obliga-tions to avoid early repayment of the aforementioned loans and cred-its. On 31 December 2011 and 31 December 2010, the Company’s directors consider that all the obligations relating to these loans were being met.

The repayment schedule for the bank borrowings on 31 December 2011 and 31 December 2010 is as follows:

2011

Maturing in EUR thousand

2012 880,542

2013 836,152

2014 932,034

2015 984,407

2016 967,769

Subsequent 7,918,621

Total 12,519,525

203


2011 Annual report

2010

Maturing in EUR thousand

2011 443,578

2012 664,278

2013 805,696

2014 901,577

2015 949,227


Total 12,196,759

The detail, by bank, of the drawn down and available amounts on bank borrowings at 2011 and 2010 year end is as follows:

2011

EUR thousand

Bank Drawn down Available Total

La Caixa 2,000 100,000 102,000

FMS 1,000,000 - 1,000,000

Barclays 25,000 - 25,000

Banco Europeo de Inver-siones

5,416,460 225,000 5,641,460

Instituto de Crédito Oficial 2,650,948 - 2,650,948

Depfa Bank 1,633,330 - 1,633,330

SCH 6,304 - 6,304

Bankinter 240,847 9,153 250,000

EUR thousand


Unicaja 149,280 720 150,000

KFW IPEX-Bank 166,670 - 166,670

Banco Sabadell 150,000 50,000 200,000

Dexia Sabadell 150,000 - 150,000

BBVA 928,686 143,907 1,072,593

Total 12,519,525 528,780 13,048,305

2010

EUR thousand


La Caixa 3,524 102,809 106,333

Banesto 1,249 2,751 4,000

Banco Europeo de Inversiones 5,153,395 100,000 5,253,395

Instituto de Crédito Oficial 2,721,223 - 2,721,223

Depfa Bank 2,750,000 - 2,750,000

SCH 8,285 - 8,285

Bankinter 117,727 82,273 200,000

Unicaja 88,323 11,677 100,000

KFW IPEX-Bank 200,000 - 200,000

Banco Sabadell 150,000 - 150,000

Dexia Sabadell 150,000 - 150,000

BBVA 853,033 150,000 1,003,033

Total 12,196,759 449,510 12,646,269

204


2011 Annual report

Accrued unpaid interest on 31 December 2011 and 2010 amounted to EUR 81,528 thousand and EUR 77,471 thousand, respectively.

The following non-current, non-trade payables relating to Aena De-sarrollo Internacional are denominated or instrumented in foreign cur-rency:

Denominated in US Dollars Equivalent value in EUR thousand

2011 2010

Maturing at long-term 2,534 3,680

Maturing at short-term 1,267 1,227

Total bank borrowings 3,801 4,907

b) Disclosures on the payment periods to suppliers

On 31 December 2011, EUR 7,461 thousand (EUR 36,104 thousand on 31 December 2010) of the balance payable to suppliers was past due by more than the maximum payment period (85 days).

This balance relates to suppliers that because of their nature are trade creditors for the supply of goods and services and, therefore, it in-cludes the figures relating to “Trade and Other Payables” and “Current Payables to Group Companies and Associates” under “Current Liabili-ties” in the consolidated balance sheet.

The detail of payments for commercial transactions made during 2011 and due at year-end in accordance to maximum legal periods stipu-lated in Law 15/2010 is as follows:

2011

EUR thousand %

Year payments within legal period 1,048,142 99.29

Remainder 7,461 0.71

Total year payments 2011 1,055,603 100.00

Excess payments (Days) 30

Oustanding balance at year-end exceeding the maximum legal period

2,114

205


2011 Annual report

15. Public administrations and tax situation

15.1. CuRRENT TAx RECEIVABLES AND PAyABLES

The detail of “Current tax receivables and payables” on 31 December 2011 and 2010 is as follows:

Tax Receivables

EUR thousand

2011 2010

Deferred tax assets 184,487 255,320

Tax loss carryforwards 398,167 342,147

“Deferred tax assets” Total (Note 15.4) 582,654 597,467

Current tax assets 359 24,684

”Current tax assets” Total 359 24,684

VAT Refundable 114,897 60,875

Tax receivable relating to grants received 34,868 50,467

“Other accounts receivable from public authori-ties” Total

149,765 111,342

The current tax asset arose basically from the supplementary income tax return for 2011. Under “VAT Refundable” the Parent recognised the credit receivable from the Public Administration relating to VAT refundable amounts.

The balance receivable in relation to grants received arises from the non-refundable grants awarded by the European Regional Develop-ment Fund (ERDF) to the Company, which had not been received at the end of 2011.

Tax payables

EUR thousand

2011 2010

Deferred tax liabilities (Note 15.6) 202,278 220,154

“Deferred tax liabilities” Total 202,278 220,154

Current tax liabilities - 1,466

“Current tax liabilities” Total - 1,466

Other tax payables 1,314 3,608

Security charge payable 5,110 -

Personal income tax withholdings 30,828 23,709

VAT payable 4,162 91

Accrued social security taxes payable 13,698 14,916

“Other accounts payable to public authorities” Total

55,112 42,324

206


2011 Annual report

15.2 RECONCILIATION Of THE ACCOuNTING LOSS TO THE TAx LOSS

The reconciliation of the accounting loss to the tax loss for income tax purposes is as follows:

2011

EUR thousand

Increase Decrease Net

Loss before tax (42,825)

Permanent differences:

Arising in the year 10,369 - 10,369

Arising in prior years - (23,842) (23,842)

Arising from consolidation adjust-ments

10,851 - 10,851

Temporary differences:




271 (17,173) (16,902)

Tax loss (223,122)

2010

EUR thousand

Increase Decrease Net


Permanent differences:




- (401) (401)





159 (15,034) (14,875)

Tax loss (245,115)

The main permanent differences are due to charges and reversals of provisions for employee benefit obligations.

The main temporary differences arose as a result of the difference be-tween the tax and accounting methods for recognising depreciation and amortisation, the provision to the allowance for bad debts and payments for retirement plans and risk provisions.

207


2011 Annual report

15.3 RECONCILIATION Of ACCOuNTING LOSS TO THE INCOME TAx ExPENSE

The reconciliation of the accounting loss to the income tax expense is as follows:

EUR thousand

2011 2010

Accounting loss before tax (42,825) (199,504)

Permanent differences (2,622) (2,260)

Tax loss (45,447) (201,764)

Tax charge at 30% (13,634) (60,529)

Tax credits and tax relief (2,964) 6,065

Total income tax expense recognised in profit or loss

(16,598) (54,464)

15.4 DEfERRED TAx ASSETS RECOGNISED

As Parent of the consolidated tax group, the Parent settles the income tax expense for the other companies of the tax group, which together reported a non-current tax asset to the tax authorities totalling EUR 398,167 thousand on 31 December 2011 (EUR 342,147 thousand in 2010).

a) Tax loss carryforwards

The tax loss carryforwards on 31 December 2011 and 31 December 2010, and the related amounts and the last years for offset are as follows:

2011

Year Incurred EUR thousand Last year for offset

2006 77,880 2024

2007 23,443 2025

2008 288,102 2026

2009 509,637 2027

2010 220,470 2028

2011 207,927 2029

1,327,459

2010

Year Incurred EUR thousand Last year for offset

2006 83,970 2021

2007 28,426 2022

2008 282,472 2023

2009 519,968 2024

2010 241,302 2025

1,156,138

208


2011 Annual report

b) Temporary differences capitalised

The detail of the temporary differences that gave rise to the deferred tax assets recognised in the consolidated balance sheet is as follows:

EUR thousand

2011 2010

Depreciation and amortisation of assets 55,255 82,999

Write-down of trade receivables 13,845 12,516

Non-current remuneration payable 657 491

Provisions for employee benefit obligations 73,060 103,532

Provision for contingencies and charges 950 1,096

Taxes - 15,201

Corrective mechanism 27,982 29,142

Hedging Instruments 10,773 9,229

Other 1,965 1,114

Total 184,487 255,320

The deferred tax assets indicated above were recognised in the con-solidated balance sheet because the directors of the Parent and of the subsidiaries considered that, based on their best estimate of the Parent and the subsidiaries’ future earnings, including certain tax planning measures, it is probable that these assets will be recovered.

15.5 DEfERRED TAx ASSETS NOT RECOGNISED

The Parent’s tax credit carryforwards earned in prior years on Decem-ber 2011 and 2010 were as follows:

2011

EUR thousand

YearDouble

taxation Tax Credit

Tax Credits for Research and Development

Tax Credits for invest-ments in

the Canary Islands

Tax credits for Donations

Other Tax credits

2006 2,005 4,137 6,687 914 424

2007 2,459 3,249 2,933 834 336

2008 3,630 2,518 2,210 944 342

2009 3,996 3,933 3,233 695 190

2010 3,030 3,721 2,502 740 89

2011 2,301 - 17 718 -

Total 17,421 17,558 17,582 4,845 1,381

209


2011 Annual report

2010

EUR thousand

YearDouble

Taxation Tax Credit

Tax Credits for Research and Development

Tax Credits for invest-ments in

the Canary Islands

Tax credits for Dona-

tions

Other Tax credits

Other deduc-tions

2004 - - - 5,687 - -

2005 - - - 18,416 - -

2006 2,005 6,630 730 27,799 914 949

2007 2,459 3,249 771 33,146 834 917

2008 3,630 2,518 - 23,089 944 940

Total 8,094 12,397 1,501 108,137 2,692 2,806

On 31 December 2011 and 2010, the Parent had not recognised these tax credits in the consolidated balance sheet since there was no cer-tainty that they could be used against future income tax returns within the period envisaged in current legislation.

On 31 December 2011, the subsidiary Aena Aeropuertos, S.A., had not recognised these tax credits in the consolidated balance sheet since there was no certainty that they could be used against future income tax returns within the period envisaged in current legislation.

2011

EUR thousand

YearTax Credits for Environmental

InvestmentsTax Credits for Investments in

the Canary Islands

2006 730 21,112

2007 771 30,214

2008 - 20,880

2009 - 38,523

2010 - 57,386

2011 - 38,819

Total 1,501 206,934

The following tax loss carryforwards from years prior to its joining the consolidated tax group and the following tax credit carryforwards were not recognised by the subsidiary Aena Desarrollo Internacional, S.A:

Year

EUR thousand

Tax LossesDouble

Taxation Tax Credit

Tax Credit for Export Activities

Tax Credit for Training Activities

Tax Credit for Pension Plans

1997 253 - - - -

1998 576 - - - -

1999 1,590 - - - -

2001 573 - 7 7 -

2002 766 29 - - -

2003 - 236 - 1 -

2004 - 232 - - -

2005 - - - - -

2006 - 320 2 2 -

210


2011 Annual report

Year

EUR thousand

Tax LossesDouble

Taxation Tax Credit

Tax Credit for Export Activities

Tax Credit for Training Activities

Tax Credit for Pension Plans

2007 3,449 536 1 1 -

2008 14,866 308 - - -

2009 - 267 1 1 -

2010 - 312 1 1 1

2011 - 350 - - -

22,073 2,590 12 13 1

15.6 DEfERRED TAx LIABILITIES

The detail of the temporary differences that gave rise to the deferred tax liabilities recognised in the consolidated balance sheet is as follows:

EUR thousand

2011 2010

Provisions for non-current assets 3,131 16,536

Provisions for employee benefit obligations - 6,340

Provisions for third-party liabilities - 3,455

Deferred income - 598

Financial hedging instruments 150 546

Taxes - 54

Grants 198,967 191,909

Other 30 716

Total 202,278 220,154

15.7 yEARS OPEN fOR REVIEW AND TAx AuDITS

Under current legislation, taxes cannot be deemed to be definitively settled until the tax returns filed are reviewed by the tax authorities or until the four-year statute-of limitations period has expired.

Although the review process opened by the Department of Tax and Customs Control in the year 2009 for the 2002-2006 period finalized in 2010, the income tax review has been open since 2002 as a result of outstanding reversal adjustments and taxable income compensation.

The VAT and Income Tax audits are finished, though IGIC and IPSI are still open for review for the years 2007 and 2008.

Ultimately, the audit is open on a general basis for every local tax since 2008.

At the close of the 2011 year the subsidiary companies Aena Desarrol-lo Internacional and CLASA had open for review the 2008 business year and following for income tax, and the 2008 and following year for other applicable taxes as well. In addition, the subsidiary company Aena Aeropuerto S.A. has open for review the period running from 31 May to 31 December, 2011 for all taxes.

The Company’s directors consider that the tax returns for the afore-mentioned taxes were filed correctly and, therefore, even in the event of discrepancies in the interpretation of current tax legislation in rela-tion to the tax treatment afforded to certain transactions, such liabili-ties as might arise would not have a material effect on the accompany-ing consolidated financial statements.

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2011 Annual report

At 2011 year-end, the (A.I.E.) Economic Interest Association CRIDA had open for income tax review 2008 and subsequent years, and 2008 and subsequent years for all the other taxes applicable to it. The view of the A.I.E. Directors, as well as its tax consultants, is that there are no tax contingencies of significant amounts that might arise in case of a tax audit regarding possible different interpretations of the tax legisla-tion applicable to activities carried out by the A.I.E.

16. Income and expenses

A) BREAKDOWN Of THE REVENuE

The revenue relating to the Group’s ordinary activities is obtained in Spain, except for that relating to the activities of desarrollo internac-ional (see note 20), the breakdown being as follows:

EUR thousand

2011 2010

Airport revenue:

Air traffic revenue:

Landing 509,534 371,527

Parking 19,694 7,593

Use of infrastructures 629,905 500,604

Passenger boarding bridges 122,971 127,219

Cargo handling 10,517 15,346

Security charge 202,284 130,671

Other 333 392

Subtotal of air traffic revenue 1,495,238 1,153,352

Non-air traffic revenue:

In-flight catering services 10,704 9,948

Premises, land and desk rent 25,446 24,294

Check-in desks 26,263 23,725

Services provided to concession holders 23,721 24,808

Restricted area access clearance 539 547

Use of lounges and unspecified areas 11,995 11,028

Ramp handling 75,233 71,261

Other 5,760 3,928

Subtotal of non-air traffic revenue 179,661 169,539

Commercial revenue:

Fuel 29,382 26,041

212


2011 Annual report

EUR thousand

2011 2010

Premises and land rent 41,813 39,893

Commercial operations 220,063 202,684

Bars and restaurants 81,346 75,038

Car rental 96,055 96,621

Vehicle parking 97,364 104,548

Advertising 28,323 27,783

Services provided to concession holders 18,536 16,184

Other 1,249 1,228

Subtotal of commercial revenue 614,131 590,020

Air traffic control:

En-route navigation aids 813,900 832,590

Approach navigation aids 93,036 192,572

Publications and other services 10,389 7,152

Subtotal of air traffic control 917,325 1,032,314

Other lines of business:

Airport logistics 23,314 22,591

International development 4,472 4,445

R&D 119 140

27,905 27,176

Total revenue 3,234,260 2,972,401

The equivalent value of sales in foreign currency, made in US dollars and Colombian pesos, was EUR 4,211 thousand.

b) Procurements

The breakdown of “Procurements” in 2011 and 2010 is as follows:

EUR thousand

2011 2010

Other procurements 270 1,233

Changes in inventories of other procurements 433 (861)

Work performed by other companies 105,095 61,510

Total 105,798 61,882

The work performed by other companies includes, inter alia, the serv-ices provided by the Ministry of Defence, the Directorate General of Civil Aviation and the National Meteorological Institute.

c) Employee benefit costs

The breakdown of “Employee Benefit Costs” is as follows:

EUR thousand

2011 2010

Employer social security costs 132,538 132,221

Contributions to employee benefit obligations 7,542 6,579

Other employee benefit costs 24,730 44,959

Total 164,810 183,759

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d) Outside services

The breakdown of “Outside Services” is as follows:

EUR thousand

2011 2010

R&D expenditure 8 9

Rent and royalties 12,330 13,402

Repairs and upkeep 336,128 338,398

Independent professional services 65,585 57,904

Insurance Premiums 17,586 18,119

Transport 381 443

Banking services 1,629 1,746

Advertising and public relations 14,123 13,761

Utilities 123,787 103,315

Surveillance and security services 131,075 129,951

Other services 201,157 236,405

Total 903,789 913,453

e) financial Loss

The financial loss for 2011 and 2010 was as follows:

EUR thousand

2011 2010

Income:

Income from equity investments 1,912 -

Other interest and similar income 853 4,310

Total financial profit 2,765 4,310

Costs:

Interest on loans (397,780) (257,319)

Other finance costs - (74)

Interest cost relating to provisions (6,335) (36,589)

Capitalisation of finance costs (Notes 5 and 6) 36,045 40,924

Total financial loss (368,070) (253,058)

Change in fair value of financial instruments (13,003) 38

Exchange losses:

Exchange profits 967 1,748

Exchange losses (866) (1,509)

101 239

Impairment on financial instruments - (6)

Net financial loss (378,207) (248,477)

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2011 Annual report

“Interest Cost Relating to Provisions” includes mainly the financial adjustments made by the Parent as a result of the interest cost on provisions. Specifically, EUR 51,943 thousand (EUR 14,892 thousand in 2010) was recognised for late-payment interest on compulsory pur-chases, the associated provision for which is discussed in Note 13.1.

f) Excessive provisions

The most significant amount included under “Excessive Provisions”, of EUR 149,527 thousand, relates to the impact of the updating of the actuarial assumptions arising from the provision for special paid leave (see Note 13.1).

g) Other disclosures

The number of employees by category and sex on 31 December 2011 and 31 December 2010, were as follows:

Professional CategoryNumber of employees on 31.12.2011 (*) Number of employees on 31.12.2010 (*)

Men Women Total Men Women Total

Senior executives 16 3 19 14 4 18

Executives and college graduates 1,327 855 2,182 1,298 787 2,085

Coordinators 1,268 400 1,668 1,278 399 1,677

Line personnel 4,226 2,074 6,300 4,268 2,039 6,307

Support staff 427 388 815 455 392 847

Controllers 1,652 726 2,378 1,681 738 2,419

Total 8,916 4,446 13,362 8,994 4,359 13,353

(*) The number of temporary employees of the Parent on 31 December 2011 and 2010 was 1,746 and 1,536 respectively.

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The average headcount by professional category, was as follows:

Professional categoryNumber (*)

2011 2010

Senior executives 18 17

Executives and college graduates 2,165 2,007

Coordinators 1,668 1,659

Line personnel 6,309 6,345

Support staff 827 856

Controllers 2,386 2,401

Total 13,373 13,285

(*) The average number of temporary employees in 2011 and 2010 was 1,807 and 1,597

The Group’s Board of Directors has 34 members, 27 men and 7 women.

The average number of employees with disabilities greater than or equal to 33% within the Aena group during 2011, by category, was as follows:

Job categoryNumber Number

2011 2010

Executives and college graduates 12 11

Coordinators 17 2

Line personnel 74 107

Support staff 17 2

Controllers 7 7

Total 127 129

Remuneration of Directors and Senior Executives

The breakdown of the remuneration received by the members of the Board of Directors and Senior Executives of the Group is as follows (in EUR thousand):

2011

SalariesAttend-

ance feesOther items

Pension plans

Insurance premiums

Total

Senior Executives (*) 1,863 43 3 16 24 1,949

Board of Directors - 239 - - - 239

(*) Including the wages of the members of the Board of Directors, who are also senior execu-tives of the subsidiaries.

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2011 Annual report

No advances or loans were granted to the current or former members of the Board of Directors and there are no pension obligations to them.

2010

SalariesAttend-

ance feesOther items

Pension plans

Insurance premiums

Total

Senior Executives (*) 1,835 41 4 15 21 1,916

Board of Directors - 214 - - - 214

(*) Including the wages of the members of the Board of Directors, who are also a senior execu-tives of the subsidiaries.

Fees paid to auditors

The fees for the audit of the Parent’s financial statements are borne by the Ministry of Economy and Finance (Spain’s National Auditing Agency).

Additionally, the fees billed in connection with the audit of the finan-cial statements of certain subsidiaries amounted to EUR 69 thousand (EUR 50 thousand in 2010)

17. Guarantees and other sureties granted

The parent public business entity had delivered and current guarantees at the close of the 2011 and 2012 business years in the amount of 508 thousand euros and 302 thousand euros, respectively. The administra-tors of the parent entity do not expect these guarantees to generate any material liabilities.

Also, the Parent is the joint and several guarantor of all the loans and credits that the subsidiary Aena Desarrollo Internacional, S.A. has ar-ranged with banks. The detail of these loans and credit facilities in 2011 and 2010 is as follows:

EUR thousand

Bank 2011 2010 Currency

BSCH 2,853 3,684 US Dollar

BSCH 3,451 4,601 Euro

ICO 948 1,223 US Dollar

Lastly, the company CLASA received guarantees from customers total-ling EUR 218 thousand (EUR 13,495 thousand in 2010).

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2011 Annual report

18. Environmental Obligations

The parent Public Business Entity and the subsidiary company Aena Aeropuertos S.A., faithful to their commitment to environmental pres-ervation and protecting the quality of life in the areas they affect, have been undertaking investments in this area which make it possible to minimize the environmental impact of their actions and to protect the environment.

As of 31 December, 2011 tangible fixed assets included environmental investments in the amount of 518.9 million euros (514.1 million as of 31 December, 2010), the accumulated amortisation of which came to 139.5 million euros as of 31 December, 2011 (119.5 million euros as of 31 December, 2010).

The environmental investments made in 2011 and 2010 amounted to EUR 24.8 million and EUR 155.5 million respectively, the breakdown being as follows:

2011 2010

EUR thousand EUR thousand

Palma de Mallorca 665 A Coruña 64,135

Barcelona 3,903 Madrid/Barajas 20,013

Madrid/Barajas 2,487 Tenerife North 17,941

Tenerife North 893 Alicante 17,804

Alicante 1,497 Bilbao 13,070

Bilbao 784 Málaga 4,585

Málaga 3,248 Gran Canaria 4,454

Gran Canaria 167 Ibiza 3,952

Ibiza 165 Vigo 2,658

Menorca 2,847 Barcelona 2,059

Girona 2,041 Palma de Mallorca 1,386

Seville 1,132 Other divisions 3,472

Melilla 812

Valladolid 421

SSCC Aeropuertos 500

Other divisions 3,214

Total 24,776 Total 155,529

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2011 Annual report

The breakdown of the environmental expenses included in the 2011 and 2010 consolidated income statement is as follows:

EUR thousand

2011 2010

Repairs and upkeep 7,001 9,205

Independent professional services 2,396 1,587

Other outside services 1,712 3,998

Total 11,109 14,790

Provisions and contingencies of an environmental nature are detailed in Notes 13.1, 13.2 and 13.3. Neither the Parent’s nor Aena Aeropuer-tos’ directors expect any additional material liabilities or contingencies to arise in this regard.

Under the Barajas Plan and pursuant to the Resolutions of the Directo-rate General of Environmental Information and Assessment, dated 10 April 1996 and of the Secretariat General of the Environment, dated 30 November 2001, Aena Aeropuertos S.A. is carrying out the sound insulation of certain housing units near Madrid- Barajas airport. By 31 December 2011, more than 12,703 homes had been insulated.

As required under the Environmental Impact Statements relating to the projects to expand the Alicante and Málaga airports, Aena is carrying out the sound insulation plans associated with these statements. At 2011 year-end, 1,681 and 783 dwellings had been insulated in Ali-cante and Málaga, respectively.

Also, in 2007 applications for the sound insulation of housing units in the environs of Gran Canaria, La Palma, Menorca, Palma de Mallorca, Tenerife North, Valencia, Bilbao, Ibiza, Pamplona, Barcelona, Sabadell, Santiago de Compostela, Vigo, La Coruña, Melilla and Gerona air-ports started to be processed and were still being processed at 2011 year-end.

Also, pursuant to the resolutions of the Ministry of the Environment, establishing the Environmental Impact Statements for Aena’s airports, Aena Aeropuertos S.A. has carried out or is carrying out the preven-tive, corrective and compensatory measures indicated in the manda-tory environmental impact study and in the aforementioned Environ-mental Impact Statement, complying with certain conditions relating mainly to: protection of the hydrological and hydro-geological system, soil protection and conservation, protection of air quality, acoustic pro-tection, protection of vegetation, wildlife and natural habitats, protec-tion of the cultural heritage, restoration of services and livestock trails, location of quarries, spoil, landfill and ancillary facility areas.

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2011 Annual report

19. Events after the reporting period

On 25 January 2012 the Board of Directors agreed to waive the con-tracts related to lots I and II of the “Tender process to select partners to participate in the share capital of the public limited liability companies in charge of the management of the airport service concessions for Madrid-Barajas and Barcelona-El Prat.”

By means of the Council of Ministers’ agreement dated 16 March 2011, approval was given to the plan to restructure and reduce the public sector and state-founded companies, in order to dimension a smaller, more streamlined and efficient sector immersed in the current context of austerity and need of control of public expenditure. Global-ly, the plan approved by the Government envisages the suppression, divestment or speeding up the liquidation of a total of eighty trade companies, including Aena Desarrollo Internacional, S.A. and Centros Logísticos Aeroportuarios, S.A., whose sole proprietor is the subsidiary Aena Aeropuertos S.A. In this respect, the governing bodies of the company shall carry out the decision through a take-over merger by the company Aena Aeropuertos, S.A.

20. Segment information The Group identifies its operating segments on the basis of internal reports which form the basis for regular reviews, discussions and evalu-ations by the Board of Directors since it is the highest decision-making authority and has the power to allocate resources to segments and evaluate their performance.

The following segments were identified: Airports, Air Navigation and Other. The later includes the Parent’s Corporate Unit and the activities carried on by the subsidiaries comprising the Aena Group: Internation-al Development, Airport Logistics Centers and R&D within the scope of ATM.

The transfer prices applied to inter-segment sales are market prices, as indicated in Note 4-o.

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2011 Annual report

Sales by geographical market

The breakdown, by geographical market, of the Company’s revenue for 2011 and 2010 is as follows

Geographical MarketEUR thousand

2011 2010

Spain 3,229,820 2,968,094

Rest of the EU countries 229 188

Others (Note 16.a) 4,211 4,119

Total 3,234,260 2,972,401

Information on main customers

The detail of sales to non-Group customers who were invoiced for amounts greater than or equal to 10% of revenue is as follows:

SalesRevenue

(EUR thousand)

2011 2010

Eurocontrol 794,710 819,336

Iberia 326,506 311,676

Total 1,121,216 1,131,012

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2011 Annual report


ItemSegments

TOTALAirport Services

Air- Traffic Control Services

Other SegmentsEliminations and

adjustments

Revenue: 2,304,105 1,070,604 33,782 (174,231) 3,234,260

Non-group customers 2,291,471 917,019 25,870 3,234,360

Inter-segment 12,634 153,585 7,912 (174,131)

Procurements (133,914) (93,701) 7 121,810 (105,798)

Staff costs (378,943) (572,376) (15,892) (967,211)

Depreciation and amortization charge (829,927) (129,755) (6,568) 2,231 (964,019)

Losses on, impairtment of, and change in allowances for trade receivables-

Current (25,156) (15,027) 10,930 (29,253)

Non-current (3,100) 178,789 (4,170) 171,519

PROFIT (LOSS) FROM OPERATIONS 26,823 284,426 8,897 3,282 323,428

Finance income 14,263 3,808 191,658 (206,964) 2,765

Finance costs (342,611) (24,012) (191,803) 190,356 (368,070)

Change in far value of financial instruments, Exchange differences and Impairtment and gains or losses on dis-posals of financial instruments:

(12,895) (163) 156 (12,902)

PROFIT (LOSS) BEFORE TAX (314,420) 264,059 15,786 (8,250) (42,825)

Assets 16,933,827 1,253,639 15,264,074 (14,939,192) 18,512,348

Liabilities 13,988,466 598,959 12,594,617 (12,237,139) 14,944,903

Net cash flows from the following activities:

Operating 766,497 350,857 (235,853) (12,219) 869,282

Investing (1,084,428) (130,444) 59,183 (65,680) (1,221,369)

Financing 317,112 (220,416) 177,327 77,858 351,881

Non-current assets acquisition 1,334,545 130,434 25,275 (8,571) 1,481,683

fINANCIAL STATEMENTS By SEGMENT 2011 (EuR THOuSAND)

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2011 Annual report


ItemSegments

TOTALAirport Services

Air- Traffic Control Services

Other SegmentsEliminations and

adjustments

Revenue: 1,918,775 1,032,314 34,880 (13,568) 2,972,401

Non-group customers 1,912,912 1,032,314 27,175 2,972,401

Inter-segment 5,863 7,705 (13,568)

Procurements (532) (61,350) (61,882)

Staff costs (373,108) (598,555) (6,782) (978,445)

Depreciation and amortization charge (741,918) (128,494) (4,340) 2,233 (872,520)

Losses on, impairtment of, and change in allowances for trade receivables:

Current (47,660) (8,507) (50) (56,217)

Non-current (14,051) 40,203 (8) 26,144

PROFIT (LOSS) FROM OPERATIONS (169,883) 187,942 10,375 2,642 31,076

Finance income 18,221 920 172 (15,003) 4,310

Finance costs (225,090) (27,297) (1,498) 827 (253,058)

Change in fair value of financial instruments, Exchange differences and Impairtment and gains or losses on dis-posals of financial instruments:

(15) 286 271

PROFIT (LOSS) BEFORE TAX (376,767) 161,565 27,232 (11,534) (199,504)

Assets 16,596,561 1,419,202 315,159 (178,882) 18,152,040

Liabilities 13,442,411 1,029,010 185,210 (92,624) 14,564,007

Net cash flows from the following activities:

Operating 355,114 226,263 10,637 (21,219) 570,795

Investing (1,557,679) (152,603) (19,380) (2,840) (1,732,502)

Financing 1,197,826 (73,651) 18,490 13,393 1,156,058

Non-current assets acquisition 1,365,588 162,457 13,968 (468) 1,541,545

fINANCIAL STATEMENTS By SEGMENT 2010 (EuR THOuSAND)

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2011 Annual report


NON-CURRENT ASSETS:

Intagible Assets Note 5 194,803 281,506

Development 75,084 86,297

Computer Aplications 119,505 171,365

Other intangible assets 214 23,844

Tangible Fixed Assets Note 6 730,055 16,483,624

Lands and buildings 154,210 11,008,649

Technical facilities and machinery 309,714 855,439

Other facilities, tools and furniture 88,832 2,351,265

Other tangible assets 15,578 134,032

Construction in progress 161,721 2,134,239

Investments in group and associated long-term 13,749,776 187,806

Equity instruments Note 8.1-a 2,605,131 111,878

Loans to companies Note 8.1-b 11,144,645 75,928

Single financial statements

BALANCE SHEET ON 31 DECEMBER 2011 (EuR THOuSAND)

AENA ENTIDAD PúBLICA EMPRESARIAL

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2011 Annual report


Long-term financial investments 814 2,245

Equity instruments Note 8.1-a 564 744

Derivatives Note 9 - 1,219

Other financial assets 250 282

Deferred tax assets Note 13.1 511,964 575,817

Total Non Current Assets 15,187,412 17,530,998

CURRENT ASSETS:

Inventories Note 10 1,173 6,767

Trade and other receivables 207,204 517,188

For sales and services Note 8.1-c 127,637 368,746

Customers, group companies and associates Note 8.1-b 77,471 12,259

Sundry Debtors - 361

Staff 1,241 2,343

Current tax assets Note 13.1 359 24,685

Other credits with government Note 13.1 496 108,794

Investments in group companies and associated short-term Note 8.1-b 1,067,306 5,357

Loans to companies 869,997 4,219

Other financial assets 197,309 1,138

Short-term financial investments Note 8.1-d 429 6,431

Other financial assets 429 6,431

Short-term accruals 10,652 9,377

Cash and other cash assets equivalents 1,826 3,800

Total Current Assets 1,288,590 548,920

TOTAL ASSETS 16,476,002 18,079,918

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2011 Annual report


NET EQUITY:

OWN FUNDS Note 11 3,189,502 3,111,749

Equity 3,099,018 3,099,018

Reserves 739,367 724,613

Statutory 451,196 451,196

Other reserves 288,171 273,417

Losses from previous years (711,882) (554,769)

Year Loss 62,999 (157,113)

VALUE ADJUSTMENTS (1,281) (20,820)

Hedging Note 9 (1,281) (20,820)

GRANTS, DONATIONS AND BEQUESTS Note 11-e 3,294 450,411

Grants, donations and bequests 3,294 450,411

Total Net Equity 3,191,515 3,541,340

NON CURRENT LIABILITIES:

Long-term provisions Note 12.1 243,643 635,246

Long-term employee benefit obligation provisions 243,643 417,279

Environmental actions - 161,801

Other provisions - 56,166

Long-term debts 11,642,739 11,753,426

Debts with credit entities Note 8.2-a 11,630,358 11,741,460

Derivates Note Note 9 12,381 11,966

Deferred tax liabilities Note 13.1 4,543 220,456

Total non-current liabilities 11,890,925 12,609,128

BALANCE SHEET ON 31 DECEMBER 2011 (EuR THOuSAND)

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2011 Annual report



Short-term provisions Note 12.2 125,425 185,957

Short-term debts Note 8.2-a 1,059,893 1,318,171

Debts with credit entities 958,755 515,332

Derivates 23,525 18,996


Short-term debts with group companies and associates. Note 8.1-b 50,564 15,444

Trade and other payables Note 8.2-b 157,680 409,878

Suppliers - 97

Sundries Note 8.1-b 106,155 254,763

Staff 14,997 32,569

Current tax liabilities Note 13.1 - 1,466

Other debts with Public Administrations Note 13.1 31,438 42,009

Customer advances 5,090 78,974

Total current liabilities 1,393,562 1,929,450

TOTAL LIABILITIES 16,476,002 18,079,918

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2011 Annual report

Notes 2011 2010


Revenue Note 14-b 1,070,975 1,032,314

Procurement Note 14-a (93,694) (61,350)

Cost of raw materials and other consumables use (759) (262)

Work performed by other companies (92,935) (61,088)

Other operating income 3,536 11,850

Non-core and other current operating income 2,776 10,715

Income-related grants transferred to profit 760 1,135

Staff costs Note 14-c (581,360) (598,555)

Wages, salaries and similar expenses (506,560) (506,085)

Social security costs (62,319) (82,259)

Provisions (12,481) (10,211)

Other operating expenses (159,714) (110,323)

Outside services Note 14-d (149,549) (96,643)

Taxes (4,692) (4,875)

Loss, damage and changes in trade provisions Note 8.1-c (3,950) (8,523)

Other operating expenses (1,523) (282)

Depreciation and amortization Notes 5 and 6 (131,856) (128,495)

Allocation of grants and other non-financial assets 1,280 1,636

Excess provisions Note 12 176,811 42,214

Impairment and loss on disposal of non-current assets Notes 5 and 6 (2,193) (2,006)

INCOME STATEMENT 2011 (EuR THOuSAND)

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2011 Annual report

Notes 2011 2010

Other results 647 657

OPERATING INCOME 284,432 187,942

Financial income 193,532 920

Investments in equity instruments Note 8.1-b 4,202 478

Group companies and associates 4,202 478

From marketable securities and other financial instruments 189,330 442

Group companies and associates Note 8.1-b 188,773 28

Third parties 557 414

Financing costs (213,733) (27,297)

On debts to third parties (217,250) (34,015)

Capitalisation of finance cost 3,517 6,718

Exchange differences (3)

Impairment and loss on disposal of financial instruments (163)

FINANCIAL RESULTS Note 14-e (20,367) (26,377)

PROFIT BEFORE TAXES 264,065 161,565

Income Taxes Note 13.4 (74,569) (43,611)

LOSS FROM CONTINUING OPERATIONS 189,496 117,954

NON-CONTINUING OPERATIONS

Loss from non-continuing operations after Taxes Note 17 (126,497) (275,067)

LOSS FOR THE YEAR 62,999 (157,113)

Notes 1-18, described in the attached Report, are an integral part of the Profit and Loss Account on December 31, 2011.

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2011 Annual report

Notes 2011 2010

A) Results of the profit and loss account 62,999 (157,113)

Income and expenses recognized directly in equity

From cash flow hedges Note 9 (19,223) (30,154)

Grants, donations and bequests received Note 11-e 61,853 71,396

Tax effect Note 13.3 (12,789) (12,373)

B) Total income and expense recognized directly in equity 29,841 28,869

Transfers to profit and loss

From cash flow hedges Note 9 13,060 -

Grants, donations and bequests received Note 11-e (17,494) (32,993)

Tax effect Note 13.3 1,330 9,898

C) Total transfers to the profit and loss account (3,104) (23,095)

TOTAL RECOGNISED INCOME AND EXPENSES (A + B + C) 89,736 (151,339)

Notes 1-18, described in the attached Report, are an integral part of the Income and Expense Statement on December 31, 2011.

STATEMENTS Of CHANGES IN EQuITy fOR 2011A) STATEMENT Of RECOGNISED INCOME AND ExPENSE (THOuSAND Of EuROS)

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2011 Annual report

Assigned Equity and

Asset

By-Law reserves

Other Reserves

Losses from Previous

YearsYear Loss

Valuation Adjustment

Grants, Donations,

or Gifts and Bequests received

TotalEquity

BALANCE AT 2009 YEAR-END 3,099,018 479,917 244,696 (201,870) (352,899) 288 423,529 3,692,679

Total recognized income and expense - - - - (157,113) (21,108) 26,882 (151,339)

Application result 2009 - - - (352,899) 352,899 - - -

Reclassification of reserves - (28,721) 28,721 - - - - -

BALANCE AT 2010 YEAR-END 3,099,018 451,196 273,417 (554,769) (157,113) (20,820) 450,411 3,541,340

Total recognized income and expense - - - - 62,999 (4,314) 31,051 89,736

Application result 2010 - - - (157,113) 157,113 - - -

Non-monetary Contribution to Aena Aeropuertos SA - - - - - 23,853 (478,168) (454,315)

Increase of Reserves due the valuation of consoli-dated shares subject to non-cash contribution to Aena Aeropuertos SA

- - 14,754 - - - - 14,754

BALANCE AT 2011 YEAR-END 3,099,018 451,196 288,171 (711,882) 62,999 (1,281) 3,294 3,191,515

Notes 1-18, described in the attached Report, are an integral part of the Statement of Changes in Total Equity on December 31, 2011.

STATEMENTS Of CHANGES IN EQuITy fOR yEAR 2011B) STATEMENT Of CHANGES IN TOTAL EQuITy (EuR THOuSAND)

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2011 Annual report

2011 2010

CASH FLOW FROM OPERATING ACTIVITIES (I) 207,330 566,021

Loss before tax 85,370 (215,202)

Adjustments for: 522,911 1,214,686

- Depreciation and amortization 474,391 870,413

- Impairment losses 23,228 56,167

- Change in provisions (62,296) 87,043

- Allocation of grants (18,214) (32,993)

- Gains/Losses on derecognition and disposal of non-current assets 10,510 22,542

- Gains/Losses on derecognition and disposal of financial instruments 1,093 6

- Financial incomes (205,708) (19,141)

- Interest expenses 309,723 230,658

- Exchange differences (2) (9)

- Change in fair value of financial instruments 163

- Other incomes and expenses (9,977)

Changes in working capital (293,407) (158,277)

- Inventories 561 (861)

- Trade and other receivables (187,126) (118,857)

- Other current assets (205,471) (2,166)

- Trade and other payables 95,391 (28,553)

- Other current liabilities 3,238 (7,840)

Other cash flow from operating activities (107,544) (275,186)

- Interest payments (324,959) (296,771)

- Dividend charges 12,015 14,176

CASH fLOW STATEMENT 2011(EuR THOuSAND)

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2011 Annual report

2011 2010

- Interest charges 178,637 4,960

- Charges (payments) from income tax 26,763 2,449

CASH FLOW FROM INVESTING ACTIVITIES (II) (563,683) (1,727,148)

Payments due to investments (756,503) (1,738,677)

- Group companies and associates (125,061) (6,400)

- Intangible assets (38,678) (74,378)

- Tangible assets (591,773) (1,657,899)

- Other financial assets (991) -

Proceeds from disposal 192,820 11,529

- Group companies and associates 192,820 11,528

- Property, plant and equipment assets -

- Other financial assets 1

CASH FLOW FROM FINANCING ACTIVITIES (III) 354,379 1,163,652

Charges and payments due to equity instruments 28,111 69,198

- Grants, donations and bequests received 28,111 69,198

Charges and payments for financial liabilities 326,268 1,094,454

- Issuance of debt to credit institutions 660,171 1,530,000

- Issuance of other debts

- Repayment of debts to credit institutions (331,936) (433,207)

- Repayment of other debts (1,967) (2,339)

EFFECT OF EXCHANGE RATE CHANGE (IV) 9

INCREASE / DECREASE IN CASH AND CASH EQUIVALENTS (I + II + III + IV) (1,974) 2,534

Cash and cash equivalents at beginning of year 3,800 1,266

Cash and cash equivalents at end of year 1,826 3,800

Notes 1-18, described in the attached Report, are an integral part of the Cash Flow Statement on December 31, 2011.

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AENA AEROPuERTOS S.A. y SOCIEDADES DEPENDIENTES

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The new airport system management model, (Decree-Law Royal De-cree Law 13/2010 of December 3), constitutes the new legal frame-work for the modernization of the Spanish airport system, and includes the separation of airport management and air navigation duties.

By creating the state owned company Aena Aeropuertos, S.A. (Agree-ment of the Council of Ministers February 25, 2011), Aena Aeropuer-tos, S.A. undertakes the series of duties and obligations for manag-ing and operating airport services with regard to the airport network, composed of 47 airports and 2 heliports. The company, which was launched on June 8, 2011 (agreement of the Council of Ministers of June 3, 2011), was assigned the assets, property and management of the airports that were managed by Aena.

Consolidated management report

2011 Consolidated management reportAENA AEROPuERTOS S.A. AND SuBSIDIARIES

In alignment with this planning framework, the general strategic ob-jectives of Aena are grouped in five strategic management groups: safety, quality and environment, infrastructure and services, economic efficiency and financial viability and people.

1. Evolution of the activity

Regarding the numbers (according to provisional data), during the ac-tivity of Aena Aeropuertos, S.A. between June and December 2011 Spanish airports registered almost 129.4 million passengers, operated almost 1.3 million flights, and transported more than 398,500 tons of cargo.

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2. Safety

The Strategic Infrastructure and Transport Plan (PEIT) included the rein-forcement of the safety inspection by the aeronautical authority, and of the safety controls and conditions in the airports. Likewise, it made refer-ence to the implementation of the Aena General Safety Plan in such a manner so that it would comprehensively address safety in its triple per-spective: operational safety and emergency planning (safety); security of persons and property (Security); and lastly, occupational risk prevention.

Due to its relevance and integrating nature, it is noteworthy to men-tion the approval and satisfactory execution of the Aena General Safe-ty Plan, which has served to bring together under a single global and integrated focus all of the perspectives that constitute safety, as well as allowing the solidification and coordination of all of the activities and initiatives directed toward its continuous improvement.

2.1. OPERATIONAL SAfETy AND SELf-PROTECTION

With regard to operational safety and self-protection (safety), meas-ures were taken in the following fields:

Safety management system

During 2011, Aena completed the implementation of the Safety Man-agement System (SMS) at 9 airports (Santander, Madrid-Cuatro Vien-tos, El Hierro, Murcia-San Javier, Valladolid, Salamanca, Albacete, León

and Badajoz) and 2 heliports (Ceuta and Algeciras), which were pend-ing completion. Therefore, the SMS is already implemented in all of the airports of the Aena Aeropuertos network.

Also, as part of continuous improvement of the SMS, internal supervi-sions were carried out in 23 airports where a SMS was already imple-mented: Fuerteventura, Menorca, Tenerife North, Girona-Costa Brava, Jerez, Santiago, Seville, Almeria, La Palma, FGL Granada-Jaén, Astu-rias, A Coruña, Vigo, Reus, Logroño-Agoncillo, Vitoria, Melilla, San Sebastián, Pamplona, Burgos, Sabadell, Madrid-Cuatro Vientos and Córdoba.

Process of certifying Aena network airports

With regards to the airport certification plan, during 2011 the Ibiza Airport obtained said certificate in addition to the airports that ob-tained it in 2010 (Madrid-Barajas Airport and Algeciras Heliport).

During 2011, the processes with the Jerez Airport and Barcelona-El Prat Airport continued, while a request was submitted to AESA to initiate the certification process for the airports of La Gomera, FGL Granada-Jaén, Malaga-Costa del Sol, Palma de Mallorca, Sabadell and Huesca-Pirineos.

Audits by the European Commission and the National Aviation Safety Agency (AESA)

The European Commission audited the Alicante Airport during Octo-ber, with a favorable result. Also, the European Commission and AESA visited the Madrid-Barajas and Valencia airports to carry out trials for analysis and new regulatory proposals with regards to airport security.

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The National Aviation Safety Agency (AESA) carried out a total of 31 airport safety related actions, 9 of which were audits and 22 were air-port safety inspections, in different airports of the network: Albacete, Alicante, Almeria, Barcelona-El Prat, Bilbao, Burgos, Madrid-Cuatro Vientos, El Hierro, Fuerteventura, Girona-Costa Brava, Gran Canaria, FGL Granada-Jaén, Ibiza, Lanzarote, Madrid-Barajas on two occasions, Malaga-Costa del Sol, Melilla, Menorca, Murcia-San Javier, Palma de Mallorca, San Sebastian, Santander, Santiago, Seville, Tenerife North, Tenerife South, Valencia, Valladolid, Vigo and Vitoria.

Also, AESA carried out inspections of the airport security facilities be-fore the opening of the new Terminals in Alicante, La Palma and San-tiago.

In addition, inspections were carried out to verify compliance with the National Security Program in 24 airports: Alicante, Almería, Bilbao, Burgos, El Hierro, Fuerteventura, Girona-Costa Brava, Gran Canaria, Jerez, La Gomera, La Palma, León, Madrid-Barajas, Malaga-Costa del Sol, Pamplona, Reus, Salamanca, Santander, Santiago, Tenerife North, Tenerife South, Madrid-Torrejón and Valladolid.

Also, unscheduled inspections were carried out in different airports in order to check new facilities via site visits, operating needs, devel-opment and implementation of improvement measures, carrying out trials, implementation of corrective measures and optimizing the re-sources dedicated to providing security services in the airports.

2.2. PROTECTION Of PERSONS AND PROPERTy

Investments in security equipment

With regards to security equipment, in 2011 continued investing heav-ily to supply new equipment and security systems to all of the net-work’s airports in accordance with current regulations, both for new infrastructures as well as for the scheduled renewals of security equip-ment.

In total 109 new walkthrough metal detectors, 11 metal detectors for shoes, 44 conventional x-ray devices, 7 Explosives Detections Systems (EDS) and 12 Explosives Trace detection devices were installed.

The main initiatives that stand out are the implementations of the equipment in the new terminals in Alicante, La Palma and Santiago, as well as the expansion of the terminal and new luggage building at the Fuerteventura Airport.

With regard to the use of new technology, during 2011 Aena Aerop-uertos, S.A. started to use explosives trace detection (ETD) equipment. This equipment makes it easier for persons that use wheelchairs to go through security controls and also allows security to be reinforced in certain flights and it facilitates the inspection of unclaimed luggage.

Following the progressive deployment of the Airport Security Manage-ment System (GSA), the implementations were carried out in the Air-ports of Santander, Jerez, Alicante, La Palma, A Coruña, Santiago and Reus, allowing them to have an access control security system and Closed Circuit TV (CCTV), property of Aena Aeropuertos and standard-ized for the entire network.

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Private security services

As is required by law, follow-up and analysis work was done on the evolution of the private security records in addition to a follow-up of records management control, both from an economic as well as from a quality standpoint, adjusting the standard values of the distinct in-dicators established in the technical bidding specifications for each airport’s security services, in order to attain and perform the service within a process of continuous improvement, as well as to improve the preparation of future bids.

The following actions stand out compared to previous years:

• Private security services were contracted for the Ceuta Heliport and the Burgos Airport.

• Two new security services were implemented in Madrid-Barajas: the Fast Track service that allows certain passengers to clear security faster, and the “Vuelos USA” service, in which extreme security measures are taken for flights to the United States of America.

• The training process of each one of the private security compa-nies contracted by Aena Aeropuertos was analysed, reviewing the training content and the documented records generated during the training process for each one of the assigned security staff in the airports.

Airport security training

In order to meet the training requirements in terms of airport security established in the Spanish National Training Plan, it was necessary dur-ing 2011 to provide training to the Aena Aeropuertos staff, through the completion of three classroom courses on airport security.

The training provided during these courses was offered to the Aena Aeropuertos staff with airport security responsibilities upon request of the persons responsible for the safety of each airport, such as airport security managers, directors or service executives.

The training for the group corresponding to the initial advanced secu-rity course in airport security was carried out in April, while the two groups corresponding to the airport security update were trained in October.

In addition, online training was provided to all of the employees of Aena Aeropuertos who did not require specific training in airport secu-rity, and work was done to update those courses.

During 2011, the first notification of the online Airport Security Up-date course was carried out in order to comply with the regulatory requirement to receive periodic update training in airport security.

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2.3. OCCuPATIONAL RISK PREVENTION

Among the most noteworthy actions taken in the area of Occupational Risk Prevention was the attainment of an overall incident rate at Aena (the number of accidents per thousand workers) of 6.63, which entails a significant (26.4%) decrease from 2010.

Likewise, the objectives set out in the 2011 Operation Plan regarding the number of risk assessments and medical check-ups were satisfied as well.

53,780 classroom hours of occupational risk prevention training was given at Aena for members of both unions, which entails a 61.3% increase from 2010.

3. Quality and the environment

3.1. QuALITy

In the sphere of quality the following results were obtained in 2011:

• Aena’s corporate units satisfactorily passed the first audit for renew-ing the Quality Management System pursuant to these standards. Currently, 42 airports and one heliport boast this certification up-dated to the 2008 standards.

• On the subject of quality, environment and management excellence training, courses were provided to the staff of the corporate units.

For this, Aena mainly counted on the support and collaboration of AENOR, the Club for Excellence in Management, the Spanish Qual-ity Association (AEC) and the Forum for Ethical Business Manage-ment (FORÉTICA).

• With respect to using the management framework of the Euro-pean Foundation for Quality Management (EFQM), during 2011, the Aena’s self-assessment system was completely changed, as a result creating a “simplified” and “complete” self-assessment mod-el, designing new forms and data results registries, updating their application in Aena to the EFQM 2010 model and preparing a self questionnaire that was approved by the Club for Excellence in Man-agement and distributed to the entire organization. Four complete self-assessments of the Airports of Madrid-Barajas, Girona-Costa Brava, Murcia San Javier and Jerez and one partial self-assessment of the area staff of the European Model at the Asturias Airport, were carried out.

• The Lanzarote Airport obtained the 300+ Seal of European Excel-lence from the Club for Excellence in Management.

Corporate Responsibility (RC)

After the Board of Directors of Aena approved the corporate social re-sponsibility (CR) policy and strategy, a specific department was created this November aimed at deploying Aena’s policy and strategy in this matter (CR). During 2011, Aena continued with the CR activities based on the results obtained in 2010.

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R&D&I

In the area of R&D management, the Aena Group places additional focus on research, development and innovation, and directs these activities toward the sustainable development of the organization by continuously searching for greater efficiency in processes, products and services, enforcing the corporate social responsibility and the or-ganization’s commitment to its stakeholders and society, the end user to whom it offers its services.

These activities are monitored annually through periodic reports that analyze their level of execution and development, both for upper man-agement as well as for the Ministries of Public Works, Science and Innovation, and currently for the Ministry of Economy and Competi-tiveness.

Aena, through the Ministry of Public Works, collaborated during the last quarter of 2011 with the Ministry of Science and Innovation, in order to internally coordinate the activities necessary to respond to the Government’s expectations, included in the “Innovative Public Procure-ment” development plan.

During 2011, activities aimed to improve the instruments for monitor-ing and assessing the results of the R&D activities continued by analyz-ing the results in accordance with the series of indicators established to assess the level of compliance with the R&D activity’s objectives, carry-ing out, as in previous years, a new depuration thereof and analyzing trends that allow review and, if the case may be, update of the objec-tives of the “Technological and Innovation Management Strategy.”

Other actions taken in innovation management were:

• Coordination of the participation of Aena and Aena Aeropuertos in the Third Ibero-American Air Transport Conference of the Ibero-American Network of Research of the Air Transport (RIDITA III).

• Aena’s participation in the European Business Awards, to which it presented the Benchmark ATM Center for Research, Development and Innovation (CRIDA).

Aena’s focus on new technologies and innovation materialized in nu-merous projects, among which the following are most noteworthy, by area:

• Other areas: the Satellite Ortho-imaging Airport Information System (SAOS), the projects geared toward streamlining energy consump-tion and using renewable energies in the framework of energy effi-ciency, the projects designed to improve the security of persons and facilities through innovative information technologies or plans that facilitate information and special services to persons with reduced mobility (PRM).

• Benchmark ATM R&D center (CRIDA), created for the purpose of analyzing and evaluating concepts, procedures and systems, so that they may be introduced as instruments to provide air traffic services.

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3.2. ENVIRONMENT

During the year 2011 the following actions were undertaken in rela-tion to environmental protection, a strategic objective of Aena that is integrated at all operational levels:

Environmental certification

With respect to environmental certification in accordance with the UNE-EN ISO 14001:2004 standards, all Aena network airports are cer-tified (except Madrid-Torrejón and the heliport of Algeciras), as are all the buildings of the Aena Central Services and the Directorate of Air Navigation within their Integrated Management System.

Sound insulation plans

During 2011, Aena Aeropuertos undertook various actions aimed at soundproofing areas near airports, 1,022 homes were soundproofed.

Assessment of the environmental impact of projects and strate-gic environmental assessment of planning tools.

During 2011, the environmental impact statement (EIS) was obtained for the Girona-Costa Brava Airport expansion project, as well as the environmental resolutions for the infrastructure projects in the Ali-cante, Gran Canaria, Lanzarote, El Hierro, Seville and Tenerife North airports.

Likewise, more than 150 airport infrastructure and air navigation aid projects were reviewed, analyzing the characteristics of the action and applicable legal framework, advising whether it is necessary to submit the referred projects to any type of procedure regarding the environ-

mental impact evaluation and, if the case may be, indicate the most appropriate procedure.

With regard to the strategic environmental assessment, the environ-mental reports were drafted for the master plans of the airports of Córdoba and Son Bonet; the environmental assessment of the master plans of the airports of Alicante, Fuerteventura, El Hierro, La Palma, San Sebastian and Tenerife North continued and the environmental as-sessments of the proposed revisions of the master plans for A Coruña, Bilbao and Gran Canaria were initiated.

Sound and air assessments

Pursuant to the Law 5/2010 a public notice was placed for the sound easements delimiting proposal and associated Action Plan for the air-ports of Alicante, Gran Canaria, Palma de Mallorca, Tenerife North and Seville.

Likewise, the documentation corresponding to the acoustic aeronauti-cal easements for the airports of Bilbao, Ibiza, Malaga-Costa del Sol and Valencia was prepared, the public notice for which will be issued shortly.

Over the course of 2011, the development and implementation of a Corporate System to Monitor Noise in Flight Paths (SCMRS) for the airports of Alicante and Malaga-Costa del Sol continued and the Sys-tem to Monitor Noise in the Airport of Palma de Mallorca (SIRPA) was replaced and improved, with a total of 24 sound meters installed around those airports.

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In addition, as per Royal Decree 1257/2003, in June 2011 the resolu-tion of the State Agency for Air Safety was published, which intro-duced operating restrictions in the Airport of Barcelona-El Prat, fol-lowing the procedure of “Balanced approach” adopted by the OACI that regulates a series of procedures allowing for noise reduction around the airport in question.

With regard to the air assessments, 2011 was a milestone for emis-sions assessments associated with airport activity, which has a global effect on the atmosphere; carbon footprints (CO2 emissions) were calculated for the Madrid-Barajas, Barcelona-El Prat and Lanzarote airports in order to obtain the Airport Carbon Accreditation (ACA). Said accreditation is the standard used by European Union airports to certify their carbon emission management efforts, allowing them to obtain public recognition in this field. The carbon footprints of said airports were verified by the Spanish Association of Standardization and Certification (AENOR), pursuant to the UNE ISO 14064 standard in order to obtain the participation certificates corresponding to Level 1 (mapping), in the case of Lanzarote and Barcelona-El Prat, and to Level 2 (reduction) in the case of Madrid-Barajas, pursuant to the re-quirements of the ACA program.

With regard to local air quality assessments, an air contamination characterization study was done in 2011 at the Ibiza airport, and dif-ferent air quality simulations were carried out at the Palma de Mal-lorca airport in order to compare the data obtained with the air quality readings taken by the airport itself.

Characterization and management of soil

During 2011, soil quality preservation work initiated in previous years at the Aena Aeropuertos network of airports was continued.

With the completion of the characterization studies, each airport is currently equipped with a network of piezometers allowing periodic control and monitoring to prevent future contamination.

Likewise, in 2011, continuing with the work of previous years, further steps were taken to decontaminate soil at Palma de Mallorca Airport, with more than 95% of the subsurface hydrocarbon supernatant from the old CLH airport facilities being eliminated, the location of which is the current parking lot for the airport.

In the same manner, soil and water characterization studies were con-ducted for the plots where new fuel facilities were to be built, in order to establish an environmental baseline and determine the soil makeup quality for new installations.

In this sense, the responsible parties at each airport are carrying out follow-up and control actions on the concession lots, especially in fuel facilities, in order to avoid cross-contamination that could affect the soil of Aena Aeropuertos.

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Renewable energy

In 2011, the following actions were carried out:

• Review of the technical tender specifications for the concession of a solar energy plant in the Lanzarote Airport, where a facility with up to 2 MW of nominal power will be deployed. An economic viability study was also carried out as to the convenience of proposing the concession contract.

• Feasibility study for the solar facility connection at the Madrid-Cua-tro Vientos Airport.

• Study on PPT execution for a generators control system from re-newable sources in the network of Aena Aeropuertos. This study will center on the management of energy data from each of the renewable energy sources that we currently have operating in the airports.

Energy efficiency

During 2011 energy studies of the airport terminal buildings of Bil-bao, Córdoba, Fuerteventura, Menorca, Pamplona, Reus, Santander and Seville were carried out. Studies were also done on the technical blocks of the Fuerteventura, Córdoba and Zaragoza airports. In the same manner, an energy study was carried out on the following build-ings: Multiservice, Power Station and Fire Extinction service (SEI) of the Reus Airport.

Plans and actions to improve the use of energy were carried out in the airports that had energy studies done on them the previous year. The following actions stand out: replacement of inefficient refrigeration

equipment as well as avoiding prohibited refrigerants; replacement of boilers for those of the more efficient condensation type, powered by natural gas; improved lighting systems, especially the replacement of lamps for others that are more efficient and the installation and regulation of motion detectors in various areas; updating of the facili-ties management system; regulation of the setpoint temperatures of climate control facilities.

4. Services

4.1. AIRPORT SERVICES

Assistance for persons with reduced mobility (PRM)

Aena Aeropuertos offers an assistance service for Persons with Re-duced Mobility (hereinafter PRM) at all its Spanish airports, in com-pliance with Regulation (EC) 1107/2006 of the European Parliament, which safeguards everyone’s right to enjoy air transport at all European airports, regardless of their disability.

From a demand standpoint, during 2011 the service was provided 1,091,099 times throughout Aena Aeropuertos’ network and it re-ceived very positive ratings from PRMs. Aena’s work was recognised with various Spanish and international awards for accessibility and universal assistance. In July 2011, the Ministry of Territorial Policy and Public Administration granted Aena the Citizenship Award 2010 for Best Practices in Public Services for its services to People with Reduced Mobility.

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Modification of operating hours

During 2011 the operating hours of the Lanzarote, Murcia-San Javier, Pamplona, Santander and Vigo airports were modified.

From April 2011, the operating hours of the Lanzarote Airport were changed from 07:00 to 24:00 to (plus one hour PPR) to 07:00 to 02:00 local time, every day of the year.

Likewise, the Airports of Santander (from March 2011), Pamplona (from April 2011) and Vigo (from November 2011) incorporated for the entire year the possibility to extend their operating hours, upon previous authorization, to 2 hours, 1 hour and 2 hours and 30 minutes (for cargo flights only), respectively.

Finally, it should be noted that starting March 2011 the Murcia-San Javier airport expanded the time slots when civil aircraft operations are allowed, thus reducing the number of time slots exclusively restricted to military operations.

Airport marketing

With regard to airport marketing, progress was made in one of the most important areas of this field: drawing up marketing plans. In 2011, the marketing plans were drafted for seven airports: Murcia-San Javier, Valencia, Alicante, Asturias, Santander, Tenerife North and Tenerife South. In addition, the airport marketing unit held meetings with numerous airlines and local agents in order to propose new routes. In 2011, Aena participated in three important international forums: FITUR, Routes Europe and World Routes, and the IATA slots conferences.

The Customer Management department maintained close contact with airlines that operate in Spanish airports in order to make their work easier and resolve issues that are considered relevant for their business activity.

Finally, Aena continues contributing to the SESAR Program (Single Eu-ropean Sky ATM Research) that is currently in the development phase. Aena Aeropuertos is a member of a joint company created for the execution of said phase (SESAR Joint Undertaking) and leads the man-agement of the Airport Operations units. Aena Aeropuertos partici-pates in 18 projects of a total of 300, mainly in the field of airport management.

Installation of defibrillators

The airports of the Aena Aeropuertos network (excluding Madrid-Cu-atro Vientos, Madrid-Torrejón, Córdoba, Sabadell and Son Bonet) are equipped with 270 heart rescue areas, which aim to assist passengers in case of a heart attack and offer them the best care services within their facilities. It is a national plan at the network level that Aena Aero-puertos implements in order to offer life support areas at all of its air-ports.

The coverage of the contracts includes the installation and mainte-nance of different cardiac rescue columns, as well as staff training in order to obtain the accreditation for cardiac-protected space.

A total of 270 defibrillators were installed in 44 airports of the Aena Aeropuertos network for the use of non-medical staff. More than 65 were installed in the Madrid-Barajas Airport and 46 at the Barcelona-El Prat Airport, and one at small airports such as Badajoz or Albacete.

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Presentation of the Airdrome flight Information Service (AfIS)

In 2011, and as part of the process of structuring air navigation servic-es, Aena Aeropuertos continued the implementation of the aerodrome flight information service (AFIS) in compliance with the provisions of Law 9/2010 of April 14, in the following airports:

• La Gomera Airport: from July 29, 2010.

• El Hierro Airport: AFIS service from September 23, and mixed AFIS and ATC service from December 16, 2010.

• Burgos Airport from February 16, 2011.

• Huesca-Pirineos Airport, from December 15, 2011.

Deregulation of the aerodrome traffic control service

In the beginning of 2011, and pursuant to Order FOM/3352/2010 that determines the thirteen airports for which the contracting of aero-drome air traffic civil providers shall be initiated, the public tender was launched to contract this service in the following airports, which were divided in three lots:

• Lot 1: Alicante, Valencia, Ibiza and Sabadell.

• Lot 2: Seville, Jerez, Vigo, La Coruña, Melilla and Madrid-Cuatro Vientos.

• Lot 3: La Palma, Fuerteventura and Lanzarote.

The public tender, which was carried out in two phases, was awarded in September 2011 to the companies FerroNats (Lots 1 and 2) and SAERCO, (Lot 3); these two companies obtained the highest technical

and economical qualifications in addition of having been Certified by AESA as Aerodrome Air Traffic Control Service Providers.

The contracts were signed in November 2011, and in the same month Aena requested the Directorate General of Civil Aviation (DGAC), pur-suant to the provisions of law 9/2010, to designate these new provid-ers in their respective airports.

5. Infrastructures and systems

5.1. INfRASTRuCTuRE PLANNING

During 2011 approval was obtained for the Córdoba and Son Bonet master plans and the review and updating process continued in the airports of the Aena network, with the development of proposals for new master plans for the airports of La Coruña, Almeria, Asturias, Gran Canaria, Huesca-Pirineos, La Gomera, Logroño, Melilla, Zaragoza and the development of a planning study proposal for the Valladolid Airport.

Updating of the medium and long term traffic forecast updates con-tinued to be carried out at all of the airports of the Aena network. They are intended to determine the traffic of passengers and airplanes, and their annual variations, as well as their nature, domestic or inter-national, the new companies that operate them and other necessary parameters to characterize air traffic. This traffic forecast information is fundamental for carrying out follow-ups of the updates contained

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in the master plans, based on the comparison and analysis of the pa-rameters of supply/demand, such as for prioritizing investments and budget estimates.

With regard to the special plans, in 2011, the definitive approval was acquired for the special plans of the Almeria, la Palma and Seville air-ports; the provisional approval of the Malaga-costa del Sol and Pam-plona airports; and the urban application process of the special plans for the airports of Ibiza, Federico García Lorca Granada-Jaén, Menorca, Santander, Santiago, Valencia, Vigo and special plan for airport protec-tion of Barcelona-El Prat. Likewise, the formulation of special plans continued, once the new master plans are approved, in this case with the development of the proposed special plans for the Córdoba and Son Bonet Airports.

Furthermore, there was continued collaboration with the many public administrations for the final approval of the remaining special airport plans currently being processed.

Likewise, and to obtain the territorial integration of the airport in its environment, they have continued developing the numerous urban re-ports requested by the central government as well as by the territorial and local governments, all the while collaborating with the General Directorate of Civil Aviation in their reports on urban and territorial planning.

They have also developed and approved for the Madrid City Council, the development projects: 4th Modification to the Detail Study of the Cargo Center and its revised text, Storage-Warehouse for Consumable Products Aboard APM IB and for the technological Platform of Experi-

mentation with Microalgae; all of them related to the Madrid-Barajas airport.

During 2011 aviation easement proposals were developed for the air-ports of La Coruña, Córdoba, Santiago, Barcelona, Almería, Jerez, Lo-groño and Menorca

Also, upon request of the DGAC, multiple feasibility reports were drawn up for the urban developments in areas affected by aviation easements.

A new module was developed and implemented within the Geograph-ical Information System for Airport Resources (SIGRA) in the Barcelona-El Prat, Madrid-Barajas and Málaga-Costa del Sol airports, as was an environmental module in the Barcelona-El Prat and Palma airports and a commercial module in the Barcelona-El Prat Airport.

Cartography to be able to calculate the airport and radio-electrical easements was produced for the airports of Algeciras, Ibiza, Lo-groño, Menorca, Seville, Palma, Son San Joan, Son Bonet and Ten-erife South.

The global (v4) satellite ortho-imaging airport information system (SAOS) was put into production, which includes the Air Navigation fa-cilities, their easements and the natural spaces and cartographic prod-ucts for all of Spain.

As part of the implementation of the Airport Topographical Control Network (RCTA), actions were carried out at the airports of La Coruña, Alicante, Almería, Badajoz, Bilbao, Córdoba, Gran Canaria, Ibiza, Jerez, León, Logroño, Madrid-Barajas, Melilla, Menorca, Murcia-San Javier,

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Palma de Mallorca, Pamplona, Sabadell, Salamanca, San Sebastian, Santander, Seville, Son Bonet, Tenerife South, Vigo and Vitoria.

5.2. INfRASTRuCTuRES

Investments in non-financial assets by Grupo Aena Aeropuertos in 2011 amounted to 593.1 million euros, according to payment figures.

The firm commitment to the creation and development of airport and air navigation infrastructure ensures that Aena’s airports can continue growing in order to meet both the existing demand and the future growth that is bound to come. To this end, Aena has continued drafting projects and carrying out planned construction projects and installations, contributing to the improved quality and development of its airport and air navigation infrastructures, maintaining the highest safety standards to prevent occupational risks and hazards to persons and property, en-suring compliance with the requirements contained in the environmen-tal impact statements, contributing to increased earnings and ensuring its economic viability while complying with all the applicable standards and guidelines pursuant to the current legislation.

Also, the special airport plans: the Barcelona Plan (Barcelona-El Prat airport), the Plan Levante (airports of Alicante and Valencia) and the Malaga Plan (Malaga-Costa del Sol airport) are responsible for devel-oping and executing the infrastructure necessary for the expansion and adaptation of its airports; therefore, during 2011, Aena contin-ued developing and advancing in the fulfillment of established goals, contributing to the modernization and adaptation of the facilities and improving the image that customers and society in general have of these airports.

5.2.1 Principal investments carried out

The expansion and modernization actions include all airports of the Aena network, without exception. Principal investments carried out in 2011 were the following:

TITLEAMOUNT ACTION

(million €)

Airfield expansion. The Plan Malaga civil works 363.42 M€

New terminal area in Alicante Airport 308.50 M€

New terminal area in Santiago Airport 125.84 M€

Vehicle parking building, urban development and the Technical Block for Vigo Airport

41.45 M€

Airfield expansion. Beacon system and electrical installations. The Malaga Plan

37.58 M€

Adaptation and operational improvements at the terminal building of the Bilbao Airport

24.90 M€

Aircraft parking at Santiago south area 23.46 M€

Runway expansion. Córdoba 21.86 M€

Vehicle parking expansion in Seville 14.95 M€

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5.2.2 Principal investments in progress

The major investments carried out in 2011 were the following:

TITLEAMOUNT ACTION

(million €)

Terminal building expansion at Gran Canaria Airport 124.65 M€

Terminal building adaptation to the functional design at Ibiza Airport

59.37 M€

Runway expansion at A Coruña Airport 59.36 M€

Terminal building expansion at Vigo Airport 45.31 M€

Platform A remodeling (Phase II) at Palma de Mallorca Airport

19.84 M€

Construction of parking building P-3 at Gran Canaria Airport

10.42 M€

Airfield adaptation at Vigo Airport 9.98 M€

Apron slabs improvement at Tenerife North 8.37 M€

Airfield adaptation at Bilbao Airport 7.83 M€

North/south apron expansion at Gran Canaria Airport

6.89 M€

6. Economic efficiency and financial viability

The objectives related to the economic area and that resume the main economic and financial aspects of Aena management are the following:

• Increase revenue

• Reduce costs

• Control debt

6.1. CONTROL MEASuRES AND COST REDuCTION

The plans put in place in 2008 to optimize and reduce costs were car-ried out in following years and in 2011 they led to significant savings with respect to the budget approved in the items of other operating expenses.

The reduction applied to virtually all areas of expenditure, with special impact on the items of repair and conservation, in cleaning, information technology repairs, technical support, supply, and other services, which achieved great savings mainly due to austerity applied on items of secu-rity and customer service. The reduction was also applied to taxes due to the civil protection tax reduction in Catalonia.

Noteworthy among the measures taken were the introduction of the concept of variable spending depending on traffic, negotiating eco-nomic conditions with service providers, policies for optimizing re-sources, postponing non-essential actions, a reduction in technical

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assistance and greater control of fixed and non-fixed costs (advertise-ment, office supplies, transportation).

Subsidized rates

In order to support the air transport industry and favour tourism, the government established the following discounts in airport charges:

1. A 100% discount in the payment of passenger charges for airlines that in 2011 carried more passengers than in the previous year, in the group of airports from the Canary Islands, Balearic Islands, Ceuta and Melilla.

2. A 50% discount in landing, passenger and security rates in the op-erations that suppose an increase in frequency with regard to the same programming seasons of the previous year, in the group of airports from the Canary Islands, Balearic Islands, Ceuta and Melilla.

3. A discount between 20% and 50% in landing, passenger and se-curity rates in operations that suppose the opening of new routes that depart from or arrive to airports in the Canary Islands, Balearic Islands, Ceuta and Melilla.

4. A 50% discount in landing and passenger rates for domestic and international flights carried out during off-peak days of the week at all Canary Islands airports.

5. A 30% discount in landing rate and passenger charges for flights that make commercial stopovers in the Canary Islands with desti-nation or origin in countries that do not belong to the European Economic Space.

These discounts on airport charges entailed 38.4 million euros less rev-enue for Aena Aeropuertos.

6.2. ACTIONS RELATED TO COMMERCIAL SPACES AND SERVICES

In June, the public company Aeropuertos Españoles y Navegación Aé-rea was transformed into the state commercial company Aena Aerop-uertos S.A., with the consequent transformation of all the concession agreements to lease agreements. To this end, it was necessary that the commercial concessionaires accept the change of title and the legal regulations applicable to them. 98% of them accepted said change. With regard to agreements with companies that rejected the change, they were put to tender again and were awarded.

With regard to the commercial infrastructure development, the follow-ing noteworthy actions were taken in 2011:

• With the beginning of operations at the new terminal in the Ali-cante Airport on March 24, 2011, the commercial space increased to a total of 8,736 m2, which represented a 51% increase.

• Of the total surface area, 4,579 m2 was allocated to 19 retail busi-nesses with a varied and up-to-date commercial space, including clothes, accessories and technology. In addition, 2,946 m2 was al-located to restaurant businesses (with 16 points of sale) that offer a variety of domestic and international brands. There is also a shared seating area. Another 7 spaces were allocated to commercial space, including currency exchange, luggage wrapping equipment, vend-ing machines, ATM machines, etc.

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• In July 2011, the new terminal area at the La Palma Airport was opened. As a consequence, the commercial space in that airport saw its surface area increase by 125% to a total of 2,412 m2. The new terminal currently has 3 stores, 4 restaurants and one phar-macy. There are plans to add an additional store and open a lottery office.

With regard to parking, the previous space was expanded with a park-ing area under the terminal building, which has 448 public parking spaces, 552 rental car spaces, 96 parking spaces for employees and that, added to the previous space, makes for a total of 2,452 parking spots. Also, currently Aena has taxi parking with 48 spaces, 45 spaces for buses and 11 for microbuses.

• In October 2011, the new terminal area at the Santiago Airport was put into operation. After its opening, the commercial area increased its surface area to a total of 2,767 m2 (a 49% increase), of which 363 m2 correspond to 6 stores, 310 to a duty-free store (the retail area includes multi-store activities, typical regional food store, book and press, crafts and silverware, clothes and accessories stores), and 1,785 m2 allocated to 3 restaurants.

In addition, the airport has other businesses that include complimen-tary activities such as ATM machines, telephone booths, vending ma-chines, Internet and luggage plastification.

It also has a parking area of 140,000 m2, which includes 3,496 parking spaces, 10 express, 18 for buses and 44 remote.

• The opening of the C Module at the Palma de Mallorca Airport provided 3,202 m2 for stores, distributed between a Duty-free store and 5 retail stores. With regard to restaurants, 2,454 m2 were pro-vided, which is distributed in 4 points.

Also, 2 concessionaires of the FBO (fixed base operators) commenced operations at the La Palma Airport. FBO 1 was awarded in July 2011 to UTE Iberia/Gestair, while FBO 2 was awarded to Mallorcair S.L. and commenced its activities in June 2011

Within the main commercial actions, 16 restaurant spaces were al-located in 2011 (corresponding to 32 points) and 24 spaces were allocated to stores (corresponding to 26 premises).

Several agreements were signed on the subject of land use develop-ment with:

• The Association of Science and Technology Parks of Spain (APTE) for the classification of certain airport land as technology parks.

• The Agency for the Innovation and Development of Andalusia (IDEA), related to land development for the Airports of Jerez and Seville.

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• The Valencia Regional Government for management of the golf course located on Valencia Airport land.

With regards to income, the income from sales in 2011 increased (pro-visional numbers) by 4.14% compared to the previous year (24.67 mil-lion euros more) reaching 620.48 million euros. Taking into consid-eration that commercial traffic increased by 6.05% in 2011, the sales revenue per commercial passenger ratio was 3.05 euros.

The sales revenue ratio compared to airport revenue in 2011 was 27.03%.

In general terms, it is important to indicate the contribution of the 2011 sales revenues of the network’s seven major airports, which entailed 76.91% of all commercial income (Madrid-Barajas, 26.91%; Barcelona- El Prat 20.13%; Malaga-Costa del Sol 7.39%; Palma de Mallorca, 7.74%; Alicante 5.60%, Tenerife South 4.60% and Gran Canaria 4.55%).

Commercial activity is grouped by lines of business, in order according to their relative weight in relation to the total commercial income, divided in the following manner:

Business LineChange (%) 2011 / 2010

Total weight (%) of commercial revenue

Duty free shops 9.49% 18.94%

Shops and commercial areas

8.89% 16.73

Car park -6.87% 15.69%

Car rental -0.59% 15.48%

Food outlets 8.41% 13.11%

Business LineChange (%) 2011 / 2010

Total weight (%) of commercial revenue

Rentals 2.64% 7.56%

Fuel 12.83% 4.74%

Advertising 1.94% 4.56%

Consumption 14.57% 2.99%

Lounges -2.97% 0.16%

Other (Agricol. Exp. Film) 30.34% 0.04%

Total 4.14% 100.00%

With regard to income control, the implementation of the new control system based on TPV (SAVIA) was initiated, with the aim of improving sales information and control. The system’s objective is to achieve bet-ter information, both on sales volume as well as on the type of product sold.

In 2011 the system was implemented in the airports of Madrid-Barajas, Alicante, Barcelona-El Prat, La Palma and Santiago.

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6.3. CONTRACTS

The most significant investment contracts entered into in 2011 involv-ing airport destination centers are described below:

TITLE Net awarded (€)

A Coruña Airport runway expansion 59,357,214.32

Framework supply agreements with installation of air bridges and service equipment for airplanes in several airports 58,500,000.00

Framework agreement 2011-2014 for the supply of fire extinguishing vehicles for several airports 18,000,000.00

Adaptation of drainage canals and RESAs in the Barcelona airport airfield. 13,446,164,49

Apron refurbishment. Seville Airport 10,864,172.00

Apron refurbishment. Reus Airport. 10,191,491.50

New electrical center in the Asturias airport. 10,180,379.39

Adaptation of the Vigo airport airfield. 9,978,830.17

Elimination of obstacles in the interior of the SGA. Malaga-Costa del Sol Airport 9,368,279.69

Refurbishment of the airplane parking apron. Zaragoza Airport 8,178,256.34

7. People

The fundamental challenge in the human resources area is to increase the motivation, commitment and personal development of all of its employees, and to make the organization more effective and efficient in order to satisfy the needs of the customers and to provide a quality service in the airport and aeronautical activity management area.

To this end, with people being the Aena´s greatest asset, the objectives focus on the following:

• Improve the development of people.

• Increase their motivation and commitment.

• Develop the control of the human resources area management, op-timizing results.

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In 2011, the most important objective was to contribute, at the organiza-tional and Human Resources level (organizational adaptation, staff defini-tion and assignment, collective bargaining, etc.), to the development of the new airport system management model, in compliance with the provisions of Royal Decree-law 13/2010 of December 3, which constitutes the new legal framework for the modernization of the Spanish airport system.

The collective bargaining agreement of the Aena Group was signed on July 14, 2011, substituting the fifth collective bargaining agreement of Aena, with agreed validity until December 31, 2018. This agreement shall apply both to the staff of the public company Aena (excluding controllers) and the staff of Aena Aeropuertos, S.A.

Staff

The total number of employees on December 31, 2011 was 8,766, including the Aena Aeropuertos Corporate Units and General Man-agement.

Human Resources management systems

The most relevant actions carried out by the management system of-fice were the following:

• Managing the process of moving over to the new state-owned com-pany: creation of job centers, new social security account codes, worker communication letters, processing the new non-active sta-tus situation for ex-officials of the Ministry of Public Works, etc., au-thorizations and cancellations for users in Contract@/Cerfifica@2. Centrally formalizing the affiliation due to becoming a part of Aena Aeropuertos S.A.

• Participation in the process of separating the companies in the cor-porate application of SAP to adapt the system for the new 2011 organizational model.

• Development and management of new employment contracts with discount/reduction possibility in Aena Aeropuertos, and other dis-counts.

• Within the scope of the 2010-2013 Austerity Plan, with regards to the objective of cost control and productivity improvement in Hu-man Resources, the following were achieved:

» Reduce the total service commission costs by 3.5% compared to 2010.

» Achieved an absenteeism rate for 2011 of 4.77, below average for absenteeism in Spain.

» Reduce overtime hours by 10% compared to 2010 and achieve levels equal to 2002.

Organization

With regard to the most relevant actions taken in Aena’s organizational areas, the following shall be noted:

• After the effective start of the operations and obligations of Aena Aeropuertos S.A. on June 8, 2011, organizational development of the new management model was carried out. This development was carried out in two phases, on June 8 and November 1, with all necessary measures taken within the current austerity context, taking into consideration the efficiency criteria and without an ad-

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ditional cost increase and without a net increase in the number of structural positions.

• Aena’s Performance Management System (SGD) has consolidated as a reference system for improving and measuring the perform-ance of Aena’s employees and managers. This system not only represents a change in human resources management, but also a cultural change and a way to work focusing on results, which brings about greater employee commitment to Aena’s objectives.

• Aena is advancing in the development and implementation of a management control system for the key airport human resources figures and indicators, which permits problems to be identified and analysed, carry out follow-up and propose solutions that improve management.

8. International

In the international arena, it is important to highlight visits and meet-ings with foreign delegations at our airports, such as the President of ICAO; the Regional Director of ICAO for North America, Central Amer-ica and the Caribbean; Transport Ministers of the Russian Federation, Portugal and Vietnam; a delegation of European Parliament members headed by Magdalena Álvarez; as well as officials from several Euro-pean airports and from other continents.

Also in 2011, the Chairman of Aena continued to actively participate in meetings as a member of the World Airport Council, ACI Governing Board and the Director of Spanish Airports as a member of the Euro-pean Board of ACI EUROPE.

8.1. AENA INTERNACIONAL

During 2011, Aena Internacional continued to actively participate, un-der various structures, in airport management in Latin America (Mex-ico, Colombia and Bolivia), EEC (United Kingdom and Sweden) and the United States of America; and also presented an offer for the con-cession of three airports in Brazil: Guarulhos/São Paulo International Airport (GRU), Viracopos/Campinas/São Paulo (VCP) International Air-port and Brasilia/Brasilia (BSB) International Airport.

8.2.1. Airport services

a) Mexico

Aena’s holding in Aena Internacional in the Grupo Aeroportuario del Pacífico (GAP), which operates 12 airports in Mexico, is administered through the company Aeropuertos Mexicanos del Pacífico (AMP).

Aena Internacional Consulting

The scheduled Technology Transfer Plan was also developed, with spe-cial attention to training in airport systems and support for the GAP technical departments (diagnosis of wildlife control situations, per-ceived quality control, methodology for traffic forecasts, etc.).

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b) Colombia

Cartagena de Indias Airport

Sociedad Aeroportuaria de la Costa S.A. (SACSA), of which Aena In-ternacional is an operating partner with 38% holdings, manages the Cartagena de Indias Airport.

Barranquilla Airport

The Barranquilla Airport is managed by Aeropuertos del Caribe, S.A. (ACSA), in which Aena Internacional has a 40% holding, apart from being its operating partner.

Cali Airport

The Cali Airport is managed by Aerocali, S. A., in which Aena has a 33.34% holding.

c) TBI

Aena Internacional has share holdings in the company TBI P.L.C. through the company Airports Concessions and Development Limited (ACDL), 100% owner thereof.

TBI operates in property or concessions in the airports of Luton, Belfast and Cardiff in the United Kingdom; Orlando Sanford in the United States; La Paz, Santa Cruz and Cochabamba in Bolivia and Skavsta in Sweden. It also has various Operation and Management contracts in the United States.

Aena Internacional has a 10% interest in ACDL.

TBI continued to apply an investment restraint policy, mainly allocating resources to maintenance operations.

9. Share holdings

Aena Aeropuertos S.A. is a direct shareholder of the commercial com-pany Aena Desarrollo Internacional, S.A. and Centros Logísticos Aero-portuarios, S.A. (CLASA); a minority shareholder of the commercial companies Restauración de Aeropuertos Españoles, S.A. (RAESA) and Barcelona Regional Agencia Metropolitana de Desarrollo Urbanístico y de Infraestructuras, S.A.; lastly, it is an indirect shareholder of corpora-tions in which the aforementioned companies have holdings

• Aena Desarrollo Internacional S.A., Single Shareholder Company whose corporate purpose is the operation, maintenance, manage-ment and administration of the airport infrastructures, as well as ad-ditional services for them and assistance to airplanes, passengers, car-go area and crews; planning and developing projects, management and control of constructions projects for infrastructures and airport facilities and air traffic control; construction, expansion, remodeling and airport infrastructure equipment, as well as carrying out studies, advising, engineering, consulting, and evaluating projects that are directly related to the aviation, airport and air traffic control business.

• Centros Logísticos Aeroportuarios, S.A. (CLASA), Single Sharehold-er Company whose corporate purpose is the development, con-struction, management, operation and maintenance of air cargo centers or equivalent existing facilities in the airports. Likewise it can develop as many commercial activities that may be directly or indirectly related to its corporate purpose, such as studies on techni-cal support, marketing, economic viability of cargo center projects, logistics, intermodal or integrated in the field of consulting.

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• Restauración de Aeropuertos Españoles, S.A. (RAESA), Investee Company owned by Aena Aeropuertos S.A. (48.99%) and ÁREAS S.A. (51.01%). The corporate purpose of the company is restora-tion operations at the Madrid-Barajas Airport.

• Barcelona Regional, Agencia Metropolitana de Desarrollo Urbanís-tico y de Infraestructuras, S.A., Company owned by the City Coun-cil of Barcelona (17.65%), Aena Aeropuertos S.A. (11.76%), Free Trade Zone Consortium (11.76%), Sociedad Urbanística Metropoli-tana de Rehabilitación y Gestión S.A. (REGESA) (11.76%), Port of Barcelona (11.76%), Empresa Metropolitana de Saneamientos y Servicios S.A. (7.84%), Association of Municipalities of Barcelona Metropolitan Area (7.84%), ADIF (5.88%), Mercados de Abaste-cimientos de Barcelona S.A. (MERCABARNA) (5.88%), Ferrocarril Metropolitano de Barcelona, S.A. (3.92%) and Transportes de Bar-celona S.A. (3.92%). Its corporate purpose is to carry out studies, analysis and prospecting on urban, territorial and environmental as-pects; projection, promotion, management, development, consult-ing, execution and operation of all types of construction projects, buildings and urban systems.

10. Air cargo centers

The group’s company Centros Logísticos Aeroportuarios, S.A. (CLASA) is in charge of building, managing and promoting cargo centers, in addition to conducting activities related to them, particularly at Aena network airports.

At the end of 2011 the administrative concessions that Aena granted to CLASA consisted of the modular cargo area at Madrid-Barajas Air-port, the air cargo area at Barcelona Airport, plot 1.2 of Zaragoza Air-port, two plots for logistics operations at Bilbao Airport, two plots of developed land at Vitoria Airport, a plot of developed land at Palma de Mallorca Airport and the air cargo area at Valencia Airport.

The CLASA profit for 2011 was positive, with before tax profit of 6,023,948 euros. Net revenues amounted to EUR 24,356,082, 95% of the revenue; corresponding to income from leasing its own facilities (73%) and income from developed land tax (27%).

The distribution and use of the office buildings at the air cargo centers are the following:

Air cargo center WarehouseNo. of clients

Surface area of plot m2

Surface area of building m2

Madrid-BarajasWarehouses leased 4 62,630 34,848


BarcelonaWarehouses leased 3 50,819 27,234


ValenciaWarehouses leased 5+PIF 20,099 9,367


387,461 215,167

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In turn, the distribution and use of the general services central build-ings is the following:

Central building

Premis-es

Total m2

Surface area

leased m2

Surface area

leased % Leased

Avail-able

No. of clients

Madrid-Barajas

Offices 15,210 10,107 66.45 117 80 102

Ware-houses

1,547 1,312 84.81 5 3 5

Barcelona

Offices 9,392 5,885 62.66 92 45 92

Ware-houses

710 597 84.05 2 1 2

Valencia Offices 1,544 962 62.31 20 23 13

28,403 18,863 66.41 236 152 214

11. Economic results and foreseeable future of the business

Comparative balances and results do not exist because the Aena Group was constituted in 2011. Additionally, Aena Aeropuertos was constituted on May 31, 2011, and the financial information and results are presented on December 31, 2011 for the period between May 31 and December 31, 2011, as a result of which they are not representa-tive. Operating results were positive and reached 103.9 million euros. The losses finally affect its consolidated results account (-84.4 million euros), caused mainly by the elevated indebtedness with which it was

constituted (see paragraphs relative to this aspect in the report), which caused a negative financial result of -234.9 million euros.

Regarding the foreseeable future of the business, in line with the pro-posal in the introduction of this report, based on the new airport man-agement model and the revision thereof, Aena Aeropuertos, S.A. looks to revitalize the group by applying efficiency criteria, and it intends to consolidate and reinforce its economic-financial viability through the development of a Strategic and Business Plan that includes:

• Increasing income by:

» Updating the rates, permitting the clear recovery of costs.

» Developing or optimizing commercial activities.

• Reducing costs by:

» Implaementing and following austerity plans.

» Improving efficiency using the new management model.

• Reducing debt and its relation with the EBITDA, by means such as:

» Reviewing the downward investment plan with the streamlining criteria and revitalizing existing infrastructures.

In particular, and in regards to updating the rates, by way of Law 1/2011 of March 4, which establishes the National Program for Civil Aviation Safety and modifies Law 21/2003, of July 7 of Air Safety, a profound transformation of the regulatory framework for its income was carried out, by establishing a procedure for updating and modify-ing their rates, pursuant to determined transparency, consulting and supervisory procedures, which will make it possible to recover costs in the future, including an adequate profitability of the investments.

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Due to the above and to what was expressed throughout this report, the long term prospects of the Group are satisfactory in all lines of business by the growth expectation in its activities, which will permit the value of the company to be maximized and for objectives of qual-ity, safety, operation and competitiveness of the Spanish air transport infrastructure to be met, at the level needed for the socioeconomic development of the country.


1. Dated January 25, 2012, the Administrative Board agrees to re-nounce formalizing contracts related to lots I and II of the “Tender procedures for selecting partners to hold stock in the corporations

in charge of managing airport service concessions for the airports of Madrid – Barajas and Barcelona – El Prat.”

2. The Council of Ministers held on March 16, 2012 approved the restructuring and streamlining plan for the public business sec-tor and state foundation sector, with the principal aim of estab-lishing a sector that is more reduced, streamlined and efficient, immersed in the current context of austerity and need to control public spending. Together, the plan approved by the Government includes the closure, investment cuts or easing the liquidation of a total of eighty corporations, among them Aena Desarrollo Interna-cional, S.A. and Centros Logísticos Aeroportuarios, S.A., which are 100% owned by the Company.

According to the information managed by the company, the plan is for a merger by absorption of CLASA and Aena Desarrollo Internacional by the parent company Aena Aeropuertos, S.A.

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Notes On 31 December 2011

NON-CURRENT ASSETS

Intangible assets: 7 93,003


Computer software 45,029

intangible assets in progress 5,532

Other intangible assets 41,838

Property, plant and equipment: 8 16,126,440

Land and buildings 11,629,445

Plant and other items of property, plant and equipment 3,119,832

Property, plant and equipment in the course of construction and advances 1,377,163

Investment property: 9 86,071

Buildings 82,654

Plant 3,417

Non-current investments in associates: 11 68,929

Investments accounted for using the equity method 68,929

Non-current financial assets 12 and 13 58,907

Deferred tax assets 20 58,995

Total non-current assets 16,492,344


Consolidated annual statementsAENA AEROPuERTOS S.A. AND SuBSIDIARIES

CONSOLIDATED BALANCE SHEET ON 31 DECEMBER 2011 (in EuR thousand)

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Notes On 31 December 2011

CURRENT ASSETS:

Inventories 17 5,224

Trade and other receivables 12 and 14 403,516

Trade receivables for sales and services 240,727

Group companies receivables 11 10,697

Companies accounted for using the equity method 11 6,189

Sundry accounts receivable 7,568

Employee receivables 1,462

Current tax assets 20 136,873

Investments in group companies and associated 12 44,619

Other accounts receivable from public authorities 44,619

Current financial assets 12 9,529

Loans to companies 472

Other current financial assets 9,057

Current prepayments and accrued income 63

Cash and cash equivalents 3,317

Total Current Assets 466,268

TOTAL ASSETS 16,958,613

The accompanying Notes 1 to 25 are an integral part of the consolidated balance sheet on 31 December 2011.

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LIABILITIES AND NET EQUITY Notes On 31 December 2011

EQUITY:

Shareholders' equity: 18 2,516,434

Equity 1,500,000

Share issuance premium 1,100,868

Loss for the year attributable to the Parent: (84,434)

Consolidated loss (84,434)

Valuation adjustments: (29,461)

Hedges 18 (24,149)

Translation differences of companies accounted for using the equity method 18 (5,312)

Grants, donations or gifts and bequests received 18 460,958

Total Equity 2,947,931

NON-CURRENT LIABILITIES:

Long-term provisions: 19 371,278

Provisions for long-term employee benefit obligations 5,225

Provisions for environmental costs 99,033

Other provisions 267,020

Non-current payable 12 and 15 11,531

Bank borrowings and other financial liabilities 6,501

Obligations under finance leases 2,124

Derivatives 49

Other financial liabilities 2,857

Non-current payable to Group companies and associates: 12 and 15 11,144,645

CONSOLIDATED BALANCE SHEET ON 31 DECEMBER 2011 (in EuR thousand)

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LIABILITIES AND NET EQUITY Notes On 31 December 2011

Deferred tax liabilities 20 197,735

Non-current accruals and deferred income 1,397

Total non-current liabilities 11,726,586


Short-term provisions 19 207,335

Current payable 12 628,867

Bank borrowings and other financial liabilities 2,846

Obligations under finance leases 465


Current payable to Group companies and associates: 12 and 15 1,087,277

Current payable to Group companies 1,087,277

Trade and other payable 12 360,594

Payable to suppliers 1,485

Sundry accounts payable 11 278,957

Remuneration payable 18,904

Current tax liabilities 20 168

Other accounts payable to public authorities 20 23,596

Customer advances 37,484

Current accruals and deferred income 23

Total non-current liabilities 2,284,096

TOTAL LIABILITIES 16,958,613

The accompanying Notes 1 to 25 are an integral part of the consolidated balance sheet on 31 December 2011.

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Notes 2011


Revenues 21.b 1,458,931

Increased valuation of executed works not invoiced

In-house work on non-current assets 8 3,689

Procurements 21.a (131,663)

Cost of raw materials and other consumables used 169

Work performed by other companies (131,832)

Other operating income 6,685

Non-core and other current operating income 6,166

Income-related grants transferred to profit 519

Staff costs 21.c (220,821)

Wages, salaries and similar expenses (160,679)

Employee benefit costs 16.c (59,890)

Provisions (252)

Other operating expenses (553,028)

Outside services 21.d (451,238)

Taxes other than income tax (67,407)

Losses on, impairment of and change in allowances for trade receivables (6,044)

Other current operating expenses (28,339)

Depreciation and amortisation charge 7, 8 and 9 (490,000)

Allocation to profit or loss of grants related to non-financial non-current assets and other grants 18.e 21,950

CONSOLIDATED INCOME STATEMENT BETWEEN 31 MAy AND 31 DECEMBER 2011 (in EuR thousand)

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Notes 2011

Excessive provisions 21.e 9,204

Impairment and gains or losses on disposals of non-current assets (5,027)

Other gains or losses 3,987

PROFIT (LOSS) FROM OPERATIONS 103,907

Finance income 21.e 1,936

From investments in equity instruments 1,936

Finance costs 21.e (224,340)

On debts to group companies (188,775)

On debts to third parties (52,462)

Interest cost relating to provisions (3,572)

Capitalisation of finance costs 20,469

Change in fair value 15 and 21.e (12,869)

Exchange differences 21.e 349

FINANCIAL LOSS 21.e (234,924)

Results of associates accounted for using the equity method 6,085

LOSS BEFORE TAX AND INVESTEES (124,932)

Income tax 20 40,498

LOSS FOR THE YEAR FROM CONTINUING OPERATIONS (84,434)

CONSOLIDATED LOSS FOR THE YEAR (84,434)

LOSS ATTRIBUTABLE TO THE PARENT (84,434)

The accompanying Notes 1 to 25 are an integral part of the consolidated income statement on 31 December 2011.

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Note 2011

A) Consolidated statement of recognised income and expense

Consolidated loss (84,434)


Arising from cash flow hedges (46,971)

Grants, donations or gifts and bequests received -

Exchange rate differences Note 19 (5,312)

Tax effect 14,092

Total income and expenses recognised directly in equity (38,191)

Transfers to profit or loss

Arising from cash flow hedges 12,896

Grants, donations or gifts and bequests received (22,755)

Tax effect 1,380

Total transfers to profit or loss (8,479)

TOTAL RECOGNISED INCOME AND EXPENSE (131,104)

The accompanying Notes 1 to 25 are an integral part of the consolidated statement of changes in equity on 31 December 2011.

CONSOLIDATED STATEMENT Of CHANGES IN EQuITy BETWEEN 31 MAy 2011 AND 31 DECEMBER 2011 (in EuR thousand)

A) CONSOLIDATED STATEMENT Of RECOGNISED INCOME AND ExPENSE

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Assigned Equityand Assets

Issuance bonus Profit (Loss)Valuation

Adjustments

Grants, Donations

or Giftsand Bequests

Received

TOTAL

Balance on 31 May 61 - - - - 61

Total recognised income and expenses - - (84,434) (29,461) (17,209) (131,104)

Transactions with group companies and associates - - - - - -

- Increase of net equty for non-monetary contribution 1,499,939 1,100,868 - - 478,167 3,078,974

Other changes in net equity - - - - - -

Balance on 31 December 2011 1,500,000 1,100,868 (84,434) (29,461) 460,958 2,947,931

B) CONSOLIDATED CHANGES IN EQuITy fOR 2011

CONSOLIDATED STATEMENT Of CASH fLOW BETWEEN 31 MAy 2011 AND 31 DECEMBER 2011 (in EuR thousand)

Notes 2011

CASH FLOWS FROM OPERATING ACTIVITIES (I) 659,947

Loss for the year before tax (124,932)

Adjustments for: 703,185

Depreciation and amortisation charge 490,000

Impairment losses 7, 8 and 9 6,044

Recognition of grants in profit or loss 18.e (21,950)

Gains/Losses on derecognition and disposal of non-current assets 5,027

Finance income (1,907)

Finance costs 224,055

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Notes 2011

Exchange rate differences (284)

Dividends received 1,774

Changes in fair value of financial instruments 3,545

Excess of provision (9,204)

Exchange rate differences 6,085

Changes in working capital 289,412

Inventories (165)

Trade and other receivables 13,692

Other current assets (14,717)

Trade and other payable (83,294)

Other current liabilities 626,411

Other non current assets and liabilities (252,516)

Other cash flows from operating activities (207,718)

Interest paid (209,401)

Dividends received 2,986

Interest received 1,290

Income tax recovered (paid) (2,440)

Other received (paid) (153)

CASH FLOWS FROM INVESTING ACTIVITIES (II) (589,546)

Payments due to investment (593,555)

Intangible assets (23,922)

Property, plant and equipment (567,716)

Property (1,524)

Other financial assets (393)

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Notes 2011

Proceeds from disposal 4,009

Property, plant and equipment 991

Other financial assets 3,018

CASH FLOWS FROM FINANCING ACTIVITIES (III) (67,733)

Proceeds and payments relating to equity instruments 11

Issue of equity instruments 61

Proceeds and payments relating to equity instruments (50)

Grants, donations or gifts and bequests received (59,438)

Issuance of debt to group companies and associates 125,000

Repayment and amortisation of debts to credit institutions 575

Repayment and amortisation of debts to group companies and associates (185,013)

Dividends and other equity instruments paid (8,306)

Dividends (8,306)

INCREASE / DECREASE IN CASH AND CASH EQUIVALENTS 2,668

CASH AND CASH EQUIVALENTS AT THE BEGINNIG OF THE PERIOD 649

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 3,317

The accompanying Notes 1 to 25 are an integral part of the consolidated statement of cash flows for 2011.

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1.1. Companies in the Group

1.1. PARENT COMPANy

Aena Aeropuertos, S. A. was established pursuant to Article 7 of Royal Decree, Law 13/2010 of 3 December which enabled the Council of Ministers to form the company. The effective incorporation was au-thorised on 25 February 2011 in the agreement of the Council of Ministers of this date, allowing the constitution of the state-owned company Aena Aeropuertos, S. A. in accordance with the provisions of Article 166 of Law 33/2003, on “Patrimonio de las Administraciones Públicas” (LPAP) of 3 November (Law on Public Administration Assets).

The corporate purpose of the company, in accordance with its articles of association, is as follows:

• The organization, running, coordination, operation, maintenance, administration and management of state-owned airports, airports of public interest and heliports managed by Aena, and of services pertaining to them.

• The coordination, operation, maintenance, administration and management of civilian areas of air bases open to civil traffic and of airports for joint use.

• The design and development of projects, the execution, manage-ment and control of investments in infrastructure and facilities re-ferred to in the preceding paragraphs and in goods intended for the

provision of air traffic services for aerodromes associated with such airport infrastructures.

• Needs assessments and, where appropriate, planning proposals for new airport infrastructures and for aeronautical and acoustic ease-ments relating to airports and services whose management is han-dled by the company.

• The development of order and security services in airports under its remit, notwithstanding the powers assigned to the Ministry of Interior concerning this matter.

• Air transport related training, including training of aeronautical pro-fessionals subject to obtaining licences, diplomas, authorisations and clearances and promoting, disseminating or developing aero-nautical or airport activity.

In addition, the company may develop any business activities that may be directly or indirectly related to its corporate purpose, including the management of airport facilities outside of Spanish territory and any other related and complementary activities that increase the profitabil-ity of investments.

The corporate purpose may be realised by the company directly or through the creation of companies and, specifically, the individualised management of airports may be carried out through subsidiaries or service concessions contracts.

The company was formally established through the issuance of 61 par value shares of 1,000 Euros, subscribed and fully paid by the Public Busi-ness Entity “Aeropuertos Españoles y Navegación Aérea” (Spanish Air-

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ports and Air Navigation) that is its sole shareholder. The public business entity “Aeropuertos Españoles y Navegación Aérea” will retain, in any case, the majority of the share capital of Aena Airports, S.A. under the terms set forth in Article 7.1, second paragraph, of Royal Decree, Law 13/2010 of 3 December, and may transfer the rest in accordance with Law 33/2003 of 3 November on Public Administration Assets (LPAP).

The incorporation of this company was recorded in the Commercial Register following the agreement of the Board of Directors on 23 May 2011, whereby the approval of the company’s activity and valuation was finalised on 31 May 2011.

Subsequently, by means of the Council of Ministers’ agreement dated 3 June 2011, in order to shape the content of the company’s activity and in accordance with Article 9 of Royal Decree Law 13/2010 of 3 December, approval was given for the increase in company capital. With this increase the shareholder invested in all the assets, rights, debts and obligations subject to the development of airport activities or commercial activities and of other state services related to airport management, including air traffic control services for aerodromes. The capital increase was made by a nonmonetary capital contribution valu-ated in accordance with current accounting standards, specifically the General Accounting Plan (Plan General de Contabilidad) approved by Royal Decree 1514/2007 of 16 November, subsequently amended by Royal Decree 1159 /2010 of 17 September. See more details about the nonmonetary contribution in Note 4.

The Ministry of Public Works is responsible for the functional supervi-sion of the company as well as for the appointment of a third of the members of the Board of Directors.

Aena Aeropuertos, S.A. became a beneficiary of the infrastructure ex-propriations conferred to its management.

Aena Aeropuertos is domiciled in Madrid, Calle Arturo Soria, 109.

For the purposes of preparing the consolidated annual accounts, it is understood that there is a Group when the parent company has one or more dependant subsidiaries, over which the parent company has direct or indirect control. The principles applied in the preparation of the Group’s consolidated annual accounts, as well as the scope of con-solidation, are detailed in Note 1.2.

The Group is controlled by the public business entity “Aeropuertos Españoles y Navegación Aérea”, which was established under Article 82 of Law 4/1990 of 29 June on the General State Budgets for 1990. It was formed with effect from 19 June 1991, once its articles of associa-tion came into force, approved by Royal Decree 905/1991 of 14 June.

1.2. SuBSIDIARIES

All entities are dependent, including special purpose entities that the Group may control directly or indirectly. Control is defined as the pow-er to govern the financial and operating policies of a business in order to obtain financial profits from its activities. When assessing whether the Group controls another entity, the existence and effect of potential voting rights that are currently exercisable or convertible are consid-ered. Subsidiaries are consolidated from the date on which control is transferred to the Group, and are excluded from consolidation on the date on which this ends.

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The details of the subsidiaries of the Group on 31 December 2011 are as follows:

Company and Registered Office Line of Business%

Owner of investmentConsolidation

MethodDirect Indirect

Subsidiaries:


Operation, maintenance, management and administration of airport infrastructures, as well as complementary services.

100 - Aena Aeropuertos, S.A. Fully consolidated

Centros LogísticosAeroportuarios, S.A. (CLASA) (a)Edificio de Servicios GeneralesAeropuerto de Madrid – BarajasMadrid (2)


100 - Aena Aeropuertos, S.A. Fully consolidated

Concesionaria del Aeropuerto de Madrid-Barajas, S.A.UAeropuerto Madrid-Barajas, Avenida de la Hispanidad SN 28042 Madrid

100 - Aena Aeropuertos, S.A Fully consolidated

Concesionaria del Aeropuerto Barcelona-El Prat,Aeropuerto Barcelona-El Prat, Prat de Llobregat SN 08820 Barcelona

100 - Aena Aeropuertos, S.A Fully consolidated

(a) Data obtained from nonmonetary contribution made on 8 June 2011.(1) Companies audited by PwC network.(2) Company audited by other auditors.

On 31 December 2011 none of these companies was listed on a stock exchange.

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The consolidation assumptions for these companies, relate to the situ-ations referred to in Art. 2 of NOFCAC, and are as follows:

1. When the Parent company, in relation to the subsidiary, is in one of the following situations:

a. The parent company owns the majority of the voting rights

b. The parent company has the power to appoint or remove the majority of the board members.

c. The parent company may have, under agreements entered into with other partners, the majority of the voting rights.

d. The parent company has appointed with their votes the majority of the members of the board, who are in their role at the time when the consolidated accounts need to be drawn up and dur-ing the two immediately preceding years. This is presumed to be the situation when the majority of the members of the board of the subsidiary are members of the board or senior management of the parent company, or of another subsidiary of the parent company.

e. When a parent company owns half or less of the voting rights, even when it has little or no stake in another company, or when power of management has not been specified (special purpose entities) but has a share in the risks and profits of the entity, or when it has the capacity to participate in the operational and financial decisions of the other company.

In compliance with Article 155 of the “Ley de Sociedades de Capital” (Capital Companies Act), the company has notified all of these compa-nies that, on its own or through another subsidiary, it owns more than 10% of the capital.

The fiscal year of all subsidiaries closes on 31 December.

2. Associated and group companiesAll entities over which any of the companies included in the consoli-dation have significant influence are associated. Significant influence means when the Group has a stake in the company and the power to intervene in decisions relating to financial and operational policy, with-out controlling it completely.

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Details of associated companies on 31 December 2011 are as follows:

On 31 December 2011 none of these companies was listed on a stock exchange.

On 24 February 2006, Grupo Aeroportuario del Pacífico, S.A. (compa-ny owned by AMP) began trading on the Mexico and New York stock markets through an IPO by the Mexican Government (previous owner

of the remaining 85% of the capital). In addition, Aeropuertos Mexi-canos del Pacífico acquired on the stock exchange a 2.296 % share in Grupo Aeroportuario del Pacífico, S.A. for a sum of 286,297,895 Mexican pesos (MXN), obtaining 17.296% of its capital. In May 2008, 640,000 shares were purchased for a sum of 26,229,376 Mexican pe-sos (MXN), 0.11396%, reaching 17.40996% of Grupo Aeroportuario

Company and Registered Office Line of Business% Carrying

amount of investment

Owner of investment

Consolidation MethodDirect Indirect

Associated and group companies:


Operation of catering services at Madrid-Barajas Airport.

48.99 - 1,353Aena Aerop-uertos, S.A.

Equity Method


Operator of Grupo Aero-portuario del Pacífico (GAP) airports.

--

33.3384,121

Aena Desarrol-lo Internac-ional, S.A.

Equity Method


Operation of Cartagena Airport.

- 37.89 690Aena Desarrol-

lo Internac-ional, S.A.

Equity Method


Operation of Barranquilla Airport.

- 40 159Aena Desarrol-


Equity Method


Operation of Cali Airport. - 33.33 1,659Aena Desarrol-


Equity Method

87,982

(a) Data obtained from a nonmonetary contribution made on 8 June 2011.(1) Company audited by other auditors.

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del Pacífico, S.A. The average acquisition price of the shares owned by Aeropuertos Mexicanos del Pacífico in Grupo Aeroportuario del Pací-fico went up to 23.12 Mexican pesos (MXN), while the share price on 31 December 2011 was 47.25 Mexican pesos (MXN).

In compliance with Article 155 of the Capital Companies Act, the com-pany has notified all of these companies that, on its own or through another subsidiary, it owns more than 10% of the capital.

The fiscal year of all associated companies closes on 31 December.

3.Basis of presentation of the annual consolidated accounts

3.1. fAIR PRESENTATION

The consolidated annual accounts were prepared from the accounting records of Aena Aeropuertos S.A. and the consolidated companies, and include adjustments and reclassifications for the temporary and evaluative standardization with the accounting criteria established by the Group.

These consolidated accounts are presented in accordance with current corporate legislation as per the amended Commercial Code, in accord-ance with Law 16/2007 of 4 July on the amendment and adaptation of corporate legislation related to accounting in order to achieve inter-national harmonization based on European Union regulations. They

also conform with Royal Decree 1514/2007 of 20 November through which the General Accounting Plan was approved, and Royal Decree 1159/2010 of 17 September through which the rules for drawing up consolidated annual accounts were approved, as long as these do not contradict the provisions of the above-mentioned corporate legislative reform. The purpose of this is to give a true representation of the as-sets, of the financial situation and of the Group’s results, as well as of the veracity of the cash flows incorporated in the cash flow statement.

3.2. ACCOuNTING PRINCIPLES APPLIED

These consolidated financial accounts were presented taking into consid-eration all of the obligatory accounting principles and standards that may have a significant effect on the aforementioned consolidated financial accounts. Any accounting principles that are mandatory were applied.

3.3. OPERATION Of THE COMPANy

On 31 December 2011, the Group presented a negative working capi-tal of 1,817,828 thousand Euros and a negative result of 84,434 mil-lion Euros for that fiscal year. In order to meet its investment commit-ments and debts in the short term the company counts on the financial support of its shareholders. Under these circumstances, the company administrators consider that there will be no difficulty in meeting pay-ment commitments.

3.4. KEy ISSuES IN RELATION TO MEASuRING AND ESTIMAT-ING uNCERTAINTy

The preparation of the consolidated financial accounts requires the Group to make some particular estimates and judgements relating to

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the future. These are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The resulting accounting estimates, by definition, would seldom be equivalent to the actual results. Estimates and judgements that pose a significant risk of leading to a material adjustment in the book values of assets and liabilities over the coming fiscal year are explained below.

• The evaluation of possible losses due to impairment of certain as-sets (Note 5.3 and 5.4).

• The useful life of tangible and intangible assets (Notes 5.3 and 5.4).

• Calculation of provisions (Note 5.11).

• The market value of certain financial instruments (Note 5.8).

While these estimates were made on the basis of the best information available at the close of the fiscal year 2011, it is possible that events that might occur in the future could require them to be modified (up-ward or downward) over the coming fiscal periods.

3.5. COMPARATIVE INfORMATION

The Group was constituted during the 2011 fiscal year (Note 1) so there are no comparative opening balances. It was formed on 1 May 2011, meaning that the financial information and results were pre-sented on 31 December 2011, and for the period between 31 May and 31 December 2011.

3.6. GROuPING Of ITEMS

Certain items on the consolidated balance sheet, on the consolidated profit and loss account, the consolidated statement of changes in net worth and the consolidated cash-flow statement are grouped together for a clearer understanding, whilst as and when significant, mandatory disaggregated information has been included in the corresponding notes of the report.

4. Nonmonetary contribution from the sole shareholder

In accordance with the contents of Article 9 of Royal Decree, Law 13/2010 of 3 December, and with the Council of Ministers’ agree-ment dated 3 June 2011, the company is authorised to increase capi-tal that has been fully subscribed by its sole shareholder, the public business entity “Aeropuertos Españoles y Navegación Aérea”. This capital increase is concluded through the contributionose assigned to port management, including aerodrome air traffic services. On 23 May 2011 the Board of Directors of the public business entity “Aeropuertos Españoles y Navegación Aérea” approved the activity contribution to the company as well as the valuation prepared by its technical services. The net worth of the branch of activity on 31 May 2011 was taken as a benchmark, in accordance with current accounting standards, and in particular the General Accounting Plan approved by Royal Decree 1514/2007, amended partially by Royal Decree 1159/2010. For this

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reason, all assets and liabilities incorporated in the nonmonetary con-tribution were at their net book value, except assets corresponding to investments in associated and Group companies within the Group, which were incorporated into the consolidated value of Aena Group on 8 June 2011, the date when the transaction took effect. Likewise, in accordance with valuation standard 4-a and 4-b, the corresponding fixed assets are shown by their net accounting value at the time of the operation, as seen in the breakdown in the notes on tangible and intangible assets.

On 6 June 2011 the public business entity “Aeropuertos Españoles y Navegación Aérea”, the Company’s Sole Shareholder, adopted the fol-lowing sole shareholder decisions:

a. To reduce the par value of the company shares by ONE THOUSAND EUROS (€1,000) per share by dividing the SIXTY-ONE shares in circu-lation into SIX THOUSAND ONE HUNDRED new shares with the pro-portion of ONE HUNDRED new shares for each old share, without al-lowing this to cause the amount of the share capital of the company to vary. As a result the share capital is SIXTY ONE THOUSAND EUROS and is represented by SIX THOUSAND ONE HUNDRED SHARES of TEN EUROS par value. All shares are of the same kind with the same political and economic rights.

b. To increase the company capital from €61,000 to €1,500,000,000 (ONE THOUSAND FIVE HUNDRED MILLION EUROS), i.e. a share capi-tal increase of €1,499,939,000.

c. Ordinary shares of a nominal value of €10 each were to be issued to represent the aforementioned capital increase of 149,993,900, with

the same rights and obligations as the previous ones. These new shares are to be issued with a total share premium of €1,100,868,000 (ONE THOUSAND ONE HUNDRED MILLION EIGHT HUNDRED AND SIXTY-EIGHT THOUSAND EUROS), thus making the total amount paid out as capital and share premium €2,600,807,000 (TWO THOU-SAND SIX HUNDRED MILLION EIGHT HUNDRED AND SEVEN THOU-SAND EUROS).

d. In accordance with the provisions of Article 9 of Royal Decree, Law 13/2010 and in the agreements of 25 February and 3 June 2011, the public business entity “Aeropuertos Españoles y Navegación Aérea” fully subscribes and pays out the total face value of the shares and the share premium through the activity referred to in paragraph 1 of this section of the report.

e. The public business entity, “Aeropuertos Españoles y Navegación Aé-rea”, contributes to the company the whole activity as an operat-ing unit in the state in which it is found (ownership, rights of use, situation, charges, etc.) according to the terms in Royal Decree, Law 13/2010. Concerning the contribution, the public business entity “Aeropuertos Españoles y Navegación Aérea”, in accordance with Article 66 of the Capital Companies Act, approved by Royal Legisla-tive Decree 1/2010 of 2 July, would respond only if the fault or war-ranty of title were to affect all or an essential part of the activity. For these purposes, anything that affects 20% or more of the total value of the contributed activity shall be understood as an essential part, or when an airport is individually affected so as to prevent it exercis-ing its activity as an airport, without detriment to the jurisdictional control over existing legislation.

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In addition to the aforementioned, any difference that may arise be-tween the estimate of the value of assets and liabilities contributed on which the necessary capital increase of the company is based and the value of the assets and liabilities actually contributed, that may occur during the period elapsing from the date of the contribu-tion to the date of transmission to private investors of part of the company’s capital, would be adjusted. The adjustment would be of the same amount, as a greater or lesser credit balance awarded by the public business entity “Aeropuertos Españoles y Navegación Aérea” to the company, this under no circumstances affecting the capital increase adjustment.

f. All public business entity “Aeropuertos Españoles y Navegación Aé-rea” staff needed to provide services for the activity, contribute to and are integrated into the company with the same collective bar-gaining agreements and valid terms of contract. Seniority and any other rights accumulated when the company begins to operate are respected.

g. The split and the valuation of the activity contributed were approved by the Board of Directors of the public business entity “Aeropuer-tos Españoles y Navegación Aérea” on 23 May 2011 in accordance with the valuation report made, which resulted in an amount of the Activity transferred as €2,600,807,000. This valuation was car-ried out using the net worth value of the branch of activity provided as a benchmark, in accordance with current accounting standards and particularly the General Accounting Plan. It complies with the requirements of Article 114 of the LPAP.

h. In accordance with Articles 70 and 300.1 of the Capital Companies Law, the Company Board Members signed the report which the sole shareholder examined.

i. The company will begin exercising the activity with effect on the date to be determined by order of the Minister of Development, expect-ed in the second transitional provision of Royal Legislative Decree 13/2010.

j. The contribution of the activity is applied under the special regime stipulated in Chapter VIII of Title VII of Royal Decree, Law 4/2004 of 5 March, which approves the revised text of the Law on corporate tax (TRLIS) in accordance with the stipulations of the third additional provision 2 of Royal Decree, Law 13/2010.

The nonmonetary contribution and assessment prepared by technical services is compiled in the “Evaluation Report”. In this, the net worth value of the branch of activity on 31 May 2011 was used as a bench-mark, in accordance with current accounting standards and, in particu-lar, the General Accounting Plan approved by Royal Decree 1514/2007 on 16 November, partially amended by Royal Decree 1159/2010 of 17 September, as stipulated in the Agreement of 25 February 2011. Below are the valuation report figures (in EUR thousand):

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Airports (AE) +/- Fixed assets of NA to trans-

fer to AE

Works of art to transfer from

AE to EPE

Tax credits with negative taxable base

Valuation of assets and liabilities to consolidated

values

Estimate of Results first 5

months of 2011 Grants

Adjusted asset value to be contributed

Non-current assets

Intangible fixed assets 72,038 n,d, 72,038

Tangible fixed assets 15,560,876 n,d, (8,724) 15,552,152

Long-term financial investments 183,783 26,190 209,973

Deferred tax assets 415,264 (342,147) 73,117

16,231,961 202,523 (8,724) (342,147) 26,190 - - 16,109,803

Current assets

Stocks 5,168 5,168

Trade receivables and other receivables 346,307 346,307

Short-term financial investments 10,392 10,392

Cash and other liquid assets 2,732 2,732

364,599 - - - - - - 364,599

Total assets 16,596,560 202,523 (8,724) (342,147) 26,190 - - 16,474,402

Non-current liabilities

Long-term provisions 224,212 224,212

Long-term debts 11,364,118 202,523 (8,724) (342,147) 127,315 11,343,085

Deferred tax liabilities 211,505 7,857 219,362

TOTAL NON-CURRENT LIABILITIES 11,799,835 202,523 (8,724) (342,147) 7,857 127,315 - 11,786,659

Current liabilities

Short-term provisions 114,486 114,486

Short-term debts 493,594 493,594

Short term debts to Group and associated companies

12,499 12,499

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2011 Annual report

The nonmonetary contribution made on 8 June 2011 comprises the following assets and liabilities:

EUR thousand

Non-current assets

Intangible fixed assets 81,257

Tangible fixed assets 15,871,872

Long-term financial investments 201,051

Deferred tax assets 51,502

16,205,682

Current assets

Inventories 5,033

Airports (AE) +/- Fixed assets of NA to trans-

fer to AE

Works of art to transfer from

AE to EPE

Tax credits with negative taxable base

Valuation of assets and liabilities to consolidated

values

Estimate of Results first 5

months of 2011 Grants

Adjusted asset value to be contributed

Trade and other payable 313,348 313,348


1,642,576 - - - - - - 1,642,576

Subsidies, donations 0 444,360 444,360

Total liabilities 13,442,411 202,523 (8,724) (342,147) 7,857 127,315 444,360 13,873,595

Assets, reserves and result 2,709,789 18,333 (127,315) 2,600,807

Subsidies, donations 444,360 (444,360) -

Total net equity 3,154,149 - - - 18,333 (127,315) (444,360) 2,600,807

Total net equity and liabilities 16,596,560 202,523 (8,724) (342,147) 26,190 - - 16,474,402

EUR thousand

Trade receivables and other receivables 410,469

Short-term financial investments 8,807

Prepayments and accrued income 1,172

Cash and other liquid assets 991

426,472

Total assets 16,632,154

Non-current liabilities

Long-term provisions 228,598

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2011 Annual report

EUR thousand

Long-term debts with Group and associated companies 11,289,895

Deferred tax liabilities 212,460

TOTAL NON-CURRENT LIABILITIES 11,730,953

Current liabilities

Short-term provisions 107,431

Short-term debts to Group and associated companies 677,494

Trade and other payable 440,668


1,822,226

Total liabilities 13,553,179

Assets, reserves and result 2,600,807

Grants, donations 478,168

Total net equity 3,078,975

Total net equity and liabilities 16,632,154

The Property, plant, and equipment provided corresponds to the rights of any nature corresponding to Aena over airport land, buildings, and equipment that is managed or used by the activity. It also includes rights of use corresponding to Aena for certain patches of land located in airports, military airfields and airbases. The rights contributed con-cern the following airports, airfields and air bases:

a. Airports for own use: A Coruña, Alicante, Almeria, Asturias, Bar-celona - El Prat, Bilbao, Burgos, Córdoba, El Hierro, Fuerteventu-ra, Girona, Granada, Huesca Pirineos, Ibiza, Jerez de la Frontera, La Gomera, La Palma, Logroño, Madrid-Barajas, Melilla, Menorca,

Palma de Mallorca-Son Bonet, Pamplona, Reus, Sabadell, San Se-bastian, Santander, Seville, Tenerife South, Valencia, Vigo and Vitoria

b. Civil part of airports used jointly with the Ministry of Defence: Gran Canaria-Gando, Lanzarote, Tenerife North, Madrid-Cuatro Vientos, Malaga, Palma de Mallorca-Son Sant Joan, Santiago and Zaragoza

c. Air bases and military airfields open for civilian use: Talavera La Real (Badajoz), Matacán (Salamanca), San Javier (Murcia), Villanubla (Valladolid), Los Llanos (Albacete), and Leon Military Aerodrom

d. Heliports: Algeciras and Ceuta heliports.

The results shown below for the period of 1 June to 8 June 2011 was transferred to the shareholder through debt:

EUR thousand


Revenue 46,667

In-house work on non- current assets 127

Procurement (905)

Other operating income 11

Staff costs (7,260)


Depreciation and amortization (16,134)

Allocation of grants and other non-financial assets 720

Excess provisions -

Impairment and loss on disposal of non-current assets 1

OPERATING INCOME 6,127

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2011 Annual report

EUR thousand

Financial income 196

Financing costs (166)

FINANCIAL RESULTS 30

PROFIT BEFORE TAXES 6,157

Income Taxes -

PROFIT FROM CONTINUING OPERATIONS 6,157

PROFIT FOR THE YEAR 6,157

The EUR 6,157 thousand was offset by the reduction of the debt with the public entity.

5. Recognition and measurement

5.1 SuBSIDIARIES

5.1.1. Takeover

Takeovers by the parent company (or another company in the Group) of a subsidiary are nonmonetary contributions accounted for in ac-cordance with the purchase method. This method requires the acquir-ing company to account for, on the date of acquisition, the identifiable assets acquired and liabilities assumed in a nonmonetary contribution, as well as, where appropriate, the corresponding goodwill or negative difference. Subsidiaries are consolidated from the date on which con-

trol is transferred to the Group, and are excluded from the consolida-tion on the date on which this ends.

The acquisition cost is fixed as the sum total of the fair values on the acquisition date, of assets handed over, liabilities incurred or assumed and equity instruments issued by the acquirer, and the fair value of any contingent consideration that may depend on future events or the fulfilment of certain conditions, that must be registered as an asset, a liability or as net worth depending on the nature of it.

Expenses related to the issuance of equity instruments or the financial liabilities handed over are not part of the cost of the nonmonetary contribution. They are recorded in accordance with the norms appli-cable to financial instruments (Note 5.8). The fees paid to legal advi-sors or other professionals involved in the nonmonetary contribution are accounted for as they are incurred. Expenses generated internally for these items are not included in the combination cost, and neither, should there be any, are those expenses incurred by the acquired entity.

The excess on the date of acquisition of the cost of the nonmonetary contribution from the pro-rata value of the identifiable assets acquired, minus that of the assumed liabilities representing the capital share of the acquired company, is recognised as a goodwill. In the rare event that this amount were to be higher than the cost of the nonmonetary contribution, the excess is accounted for in the profit and loss account as income.

5.1.2 Phased takeover

When the takeover of a subsidiary is carried out through several trans-actions on different dates, the goodwill (or negative difference) is ob-

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tained by the difference between the cost of the nonmonetary con-tribution plus the fair value on the acquisition date of any previous investment of the acquiring company in the acquired company, and the value of the identifiable assets acquired minus the liabilities as-sumed.

Any profit or loss arising as a result of the fair market value on the date of the takeover of the prior share of the acquiring company in the ac-quired company is recognised in the consolidated profit and loss state-ment. If previously the investment had been valued at its fair value, the valuation adjustments still to be charged to the year-end results is transferred to the consolidated profit and loss statement.

5.1.3 Consolidation method

The assets, liabilities, expenses, cash flows and other items of the Group’s financial statement are incorporated to the consolidated ac-counts of the Group by the full consolidation method. This method requires the following:

Temporary standardization. The consolidated financial statements are established in the same date and period as the financial statements of the company required to consolidate.

The inclusion of companies that close out their fiscal years on different dates is done by way of intermediary accounts referred to the same date and same period as the consolidated statements.

Standardization valuation. Asset and liability elements, income and ex-penses and the other items of the Group’s companies’ financial state-ments were valued following uniform methods. Asset or liability ele-

ments or income or expense items that may were valued according to some other nonuniform criteria with respect to those applied in consolidation were valuated again, carrying out the necessary adjust-ments, only for purposes of the consolidation.

Aggregation. The different items of the individual financial statements previously standardized are aggregated according to their nature.

Investment elimination-equity. The accounting values that are repre-sentative of the equity instruments of the subsidiary company, owned directly or indirectly by the parent company, are compensated with the proportional part of the equity items of the mentioned subsidi-ary company, attributable to said investments, generally on the basis of the values remaining from applying the aforementioned acquisi-tion method. In consolidations subsequent to the year in which control was acquired, the equity excess or deficit generated by the subsidiary company from the date of acquisition that may be attributable to the parent company is presented in the consolidated balance within the reserves or adjustments items by changes in value, according to their nature. The part attributable to minority interests is registered in the item “Minority interests.”

Minority interest investments. The valuation of minority interests is car-ried out according to their effective investments in the equity of the subsidiary company once the previous adjustments are incorporated. Goodwill on consolidation is not attributable to minority interests. The excess among the losses attributable to the minority interests of a sub-sidiary company and the equity item that proportionally corresponds to them is attributed to them, even when this implies a debit balance in said item.

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Elimination of intra-group items. The credits and debits, income and expenses and cash flows between companies of the group are com-pletely eliminated. Likewise, the totality of the results produced by in-ternal operations are eliminated and deferred until carried out before third parties from outside of the Group.

5.2 ASSOCIATED AND MuLTI- GROuP

Equity method

The associated companies are included in the consolidated financial statements applying the equity method.

When the equity method it applied for the first time, the investment in the company is valued by the amount that the percentage of invest-ment of the Group’s companies represents over its equity, once its net assets are adjusted to their fair value to the acquisition date of the significant influence.

The difference between the net book value of the investments in the individual statements and the amount mentioned in the previous para-graph constitutes a goodwill that is recovered in the item “investments accounted for using the equity method.” In the exceptional case where the difference between the amounts in which the investment may be accounted for in the individual accounts and the proportional part of the fair value of the net assets of the company are negative, this dif-ference is registered in the losses and gains account of the associated company.

Generally, except in the case resulting in a negative difference in the acquisition of significant influence, the investment is valued initially by its cost.

Gains or losses generated by the company using the equity method are recognised from the date in which significant influence was acquired.

The carrying value of the investment is modified (increases or decreas-es) proportionally corresponding to the Group’s companies, by the var-iations undergone in the equity of the investee from the initial recogni-tion, once the proportion of unrecognised gains or losses generated in transactions between said company and the Group’s companies is eliminated.

The greatest value attributable to the investment as a consequence of applying the equity method is reduced in subsequent years, charged to the consolidated gains or losses, or to the corresponding equity item, and to the extent that the corresponding equity items are depreciated, derecognised or disposed of to third parties. In the same manner, the charge to consolidated gains or losses is recognised when losses are produced by impairment of the investee’s equity items, with revalua-tion surplus assigned to them on the date when the equity method was first applied.

Variations in the vale of the investment corresponding to the investee’s losses or gains for the year form a part of the consolidated losses or gains, reported in the item “Investment in profits (losses) of companies under the equity method.” Nonetheless, if the associate company in-curs losses, the reduction in the account representing the investment will be limited to its own carrying value of the investment. Should

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the investment be reduced to zero, the additional losses, and the cor-responding liability are recognised in the extent that may have legal, contractual, implicit or tacit obligations, or if the Group had made pay-ments in the name of the investee.

Variations in the value of the investment corresponding to other vari-ations in equity are expressed in the corresponding equity rubrics ac-cording to their nature.

Valuation and short-term standardization is applied to associate invest-ments in the same manner as for subsidiary companies.

Modification of the investment

To determine the cost of the investment in a multi-group company, the cost of each individual transaction is taken into account.

In a new investment acquisition in the company put under the equity method, the additional investment and the new goodwill or negative difference in consolidation, are determined in the same manner as the initial investment. Nonetheless, if in relation to the same investee, goodwill and a negative difference in consolidation arise, the latter is reduced to the limit of implied goodwill.

In an investment reduction with a decrease in holdings but without los-ing significant influence, the new investment is valued by the amounts corresponding to the percentage of the retained investment.

Loss of associate or multi-group company condition

Any investment in the equity of a company that is maintained after it loses its condition as multi-group or associate company, is valuated

according to the accounting policies applicable to the financial instru-ments (see Note 5.8), considering that the initial cost thereof is the consolidated carrying value on the date in which they no longer per-tain to the scope of consolidation.

If the associated or multi-group company is no longer a subsidiary, the indication in Note 1.2 shall be applied.

If an associated company is no longer qualified as multi-group (and applies the proportional integration method) the equity items attribut-able to the previous investment are maintained.

If a multi-group company (consolidated by the proportional integra-tion method) is no longer qualified as associate, equity method is ac-counted for initially by consolidated assets and liabilities attributable to said investment, maintaining equity items in the balance that are attributable to the retained investment.

5.3. INTANGIBLE ASSETS

Intangible assets are recognised at acquisition, production cost or their saleable assignment value. Amortisation is calculated on a straight-line basis based on the useful lives of the related assets at the following rates:

Item %


Computer software 16.5

Other intangible assets 12.5-25

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Development expenditure, specifically itemised by project, which is, or will foreseeably be economically and financially profitable and techni-cally successful, is capitalised and amortised over a period of four years from the date of completion. If there are changes in the favourable circumstances of the project that made it possible to capitalise these expenses, the unamortised portion is charged to income in the year in which these conditions change.

“Computer Software” relates to the amounts paid to acquire and develop certain computer programmes. Computer software mainte-nance costs are recognised with a charge to the income statement for the year in which they are incurred.

“Other intangible assets” relates to the capitalisation of the Airport Director Plans by the subisdiary Aena Aeropuertos, S.A. and the studies associated to them, which are amortised in over a period of 8 years.

Impairment of intangible assets and property, plant and equipment

At least at year end, the Group tests the non-current and intangible assets for impairment to determine whether the recoverable amount of the assets has been reduced to below their carrying amount.

The Group makes a distinction between cash-generating assets and non-cash-generating assets. Cash-generating assets are items of prop-erty, plant and equipment, intangible assets or property owned to obtain a profit or generate a commercial return through the delivery of goods or the provision of services, while non-cash-generating assets are items owned for a purpose other than to obtain a commercial return.

Recoverable amount is the higher of fair value less costs to sell and value in use. In the case of non-cash-generating assets, the value in use will be determined by reference to their depreciated replacement cost.

The Parent performs impairment tests as follows:

• The recoverable amounts are calculated for each cash generating unit; for the whole airport network and all the air traffic control centers and towers through which the air traffic control service is provided for the following reasons:

» Individual airports do not manage their income on their own for there is a unified management structure and fees are set up globally for the entire network.

» Airport operations are controlled solely by the Parent manage-ment bodies.

» The fees received by the company as compensation for its activity are calculated taking into consideration each and every activity carried out by the company, aimed to achieve a balanced budget thus, revenue returns could generate, for example, a decrease of tariffs to benefit the users of the infrastructure.

» Ultimately, the legal framework established by Law 1/2011 stip-ulates that fees must be calculated attending to the entire net-work in order to allowing network costs to be recovered as a whole, and not permitting cost recovery by single airports and, thus, correction factors that decrease the fees of certain airports, compel us, in order to achieve a full cost recovery, to increase the fees at the rest of the network airports.

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• Management prepares a business plan each year (Pluriannual Ac-tion Plan) which generally spans a period of three years. The main components of this plan, on which the impairment test is based are as follows:

» Earning projections.

» Working capital and investments projections.

• Other variables affecting the calculation of the recoverable amount are:

» The discount rate to be used, which is taken to be the weighted average cost of capital, the main variables with an effect on its calculation being interest costs and the risks specific to the as-sets.

» The cash flow growth rate used to extrapolate the cash flow projections to beyond the period covered by the budgets or fore-casts.

• The Pluriannual Action Plans are prepared in accordance with the best estimates available and are approved by the Board of Direc-tors.

If an impairment loss has to be recognised, the company reduces the carrying amount of the assets in the cash generating unit down to the limit of the recoverable value. The impairment has to be recognised in the Profit (loss) statement.

If an impairment loss were to subsequently reverse, the carrying amount of the asset or cash-generating unit would be increased to the revised estimate of its recoverable amount, but so that the increased

carrying amount does not exceed the carrying amount that would be determined had no impairment loss been recognised in prior years. Such a reversal of an impairment loss would be recognised as income.

In 2011 no material impairment losses were detected as a result of the preceding analysis.

5.4. PROPERTy, PLANT AND EQuIPMENT

Property, plant and equipment are presented in the consolidated bal-ance sheet and are measured at acquisition cost, production cost or saleable assignment value less any accumulated depreciation and any accumulated impairment losses, as indicated in the previous note.

Assigned property, plant and equipment are measured at their saleable value, which is considered to be the actual value in use based on an independent appraisal.

Property, plant and equipment additions and purchases are measured at acquisition or production cost and include every cost required for their set-up.

Later additions are valued at acquisition cost and include every cost required for their set-up.

Interest and other finance costs incurred, directly attributable to the acquisition or construction of assets at the various airports, which nec-essarily require a period of at least 12 months to come into operation, are treated as an addition to the related assets.

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Replacements or renewals of complete items that lead to a lengthen-ing of the useful life of the assets or to an increase in their economic capacity are accounted for as additions to property, plant and equip-ment, and the items replaced or renewed are derecognised.

Periodic maintenance, upkeep and repair expenses are recognised in the income statement on an accrual basis as incurred.

The Group depreciates its property, plant and equipment once they are ready for use by the straight-line method apportioning the carrying amount of the assets over their estimated useful lives, except in the case of land, which is considered to have an indefinite useful life and is therefore not depreciated. The useful life of the assigned property, plant and equipment was estimated on the basis of the degree of use of the assets included under each heading. The years of estimated use-ful life are as follows:

% amortisation

Buildings 3.12 – 8.33

Plant 2 – 25

Machinery 5 – 20

Other fixtures 8.3 – 16.6

Furniture 7.7 – 25

Other items of property, plant and equipment

4 - 17

Airport property, plant and equipment is depreciated by the useful lives method, with the following amortisation percentages:

amortisation %

Passenger and cargo terminals 3.13

Airport civil works 4

Terminal equipment 7.69 – 25

Passenger transport between terminals 2 – 6.67

Airport civil works equipment 6.67

5.5. INVESTMENT PROPERTy

“Investment Property” in the consolidated balance sheet includes the value of buildings, other structures and fixtures held to earn long-term rentals and they are not inhabited by the Group. The elements of “Invest-ment Property” are measured at acquisition cost or production cost less any accumulated depreciation and any accumulated impairment losses.

The company depreciates its “Investment Property” assets by the straight-line method, apportioning the carrying amount of the assets over their estimated useful life.

5.6. INVENTORIES

Inventories include spare parts and sundry materials at the Central Ware-houses and the Parent’s Logistics Support Center, and are initially meas-ured at cost (weighted average cost). Acquisition cost is based on the historic cost for items identified in the purchase records. Subsequently, if the net realisable value of the inventories is lower than the acquisition cost, the appropriate write-downs are made. If the circumstances caus-

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ing the inventories to be written down cease to exist, the amount of the write-down is reversed.

5.7. LEASES

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. All other leases are classified as oper-ating leases.

finance Leases

In finance leases in which the Group acts as the lessee, the cost of the leased assets is presented in the consolidated balance sheet, based on the nature of the leased asset, and, simultaneously, a liability is recognised for the same amount. The cost is calculated by updating the amounts payable provided for in the agreement, including those stipulated in the agreement in relation to the purchase option and the effective interest rate. The total finance charges arising under the lease are allocated to the consolidated income statement for the year in which they are incurred using the effective interest method. Con-tingent rent is recognised as an expense for the period in which it is incurred.

Operating leases

• Lease income and expenses from operating leases corresponding to the lessee are recognised in the consolidated income statement on an accrual basis.

• Any collection or payment that might be made when arranging an operating lease will be treated as a prepaid lease collection or pay-ment which will be allocated to profit or loss over the lease term.

The corresponding lease liabilities, net of financial charges, are recog-nised in “Accounts payable for financial lease”. Assets acquired under financial leases are depreciated during the lesser of the two following periods: their useful life or the duration of the contract.

5.8. fINANCIAL INSTRuMENTS

financial assets

Classification-

The financial assets held by the Group are classified in the following categories:

a) Loans and receivables. These are financial non-derivative assets with fixed or determinable payments that are not quoted in an active mar-ket. They are recognized as current assets, except for maturities greater than 12 months from the date of the balance sheet are classified as non-current assets. Loans and receivables are included in “Trade re-ceivables and other receivables” in the balance sheet.

Financial assets are initially recognised at the fair value of the con-sideration given, plus any directly attributable transaction costs, and thereafter at an amortized cost recognising the accrued interests ac-cording to the effective interest rate, understanding the discount rate as equal to the book value of the instrument with the totality of esti-

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mated cash flows up to its maturity. Notwithstanding the foregoing, credits for commercial operations with maturity not greater than one year are valued, in the moment they are initially recognised as well as subsequently, by their nominal value as long as the effect of not updat-ing the flows is not significant.

At year-end, the required impairment value corrections are carried out due to impairment loss should there be objective evidence that the amounts receivable may not be satisfied.

The amount of the value impairment losses is the difference between current and future estimated cash flow values, discounting the interest rate current at the moment of initial recognition. The value adjust-ments as well as reversion, if applicable, are recognised in the balance sheet.

b) Held-for-trading financial assets: assets acquired with the intention of selling them in the short term and assets that form part of a portfo-lio for which there is evidence of a recent actual pattern of short-term profit-taking. This category also includes financial derivatives that have not been designated as hedging instruments. On 31 December 2011 no such assets were recognised in the balance sheet.

c) Available-for-sale financial assets: these are equity instruments of other companies that were not classified in any of the aforementioned categories. They are included in non-current assets unless manage-ment wishes to sell the investment in the 12 months following the closing date of the accounts. They are measured at fair value, recog-nising the changes that directly occur in equity until the asset is sold or impaired; at this moment, any accumulated equity loss or profit

is transferred to the profit and loss for the period, provided that it is possible to determine the above mentioned fair value. Otherwise, they are recognised by their cost minus losses for value impairment. In case of available-for-sale financial assets, value adjustments are made if there is objective evidence that their value has impaired as a result of a reduction or delay in future estimated cash flows for acquired debt instruments or the lack of recoverability of the asset book value for in-vestments in equity instruments. The value adjustment is the difference between the cost, or amortized cost and, where applicable, any value adjustment previous recognised in the profit and loss account and the fair value at the time the valuation is performed. For asset instruments that are valued by their cost, as their just value cannot be determined, the value adjustment is determined in the same manner as in cases of equity investments of group, multi-group or associate companies. If objective evidence of impairment exists, the company recognises the accumulated losses in the profit and loss account that were previously recognised in equity by fair value decrease. The value impairment loss-es recognised in the profit and loss account for equity instruments are not reversed through the profit and loss account. The listed investment fair values are based on the current purchase prices. If the market for a given financial asset is not active (and for assets which are not listed), the company establishes the fair value using valuation techniques such as considering recent free market transactions between interested and duly informed parties, references to other instruments of a substan-tially similar nature, future estimated cash flows discount methods and options pricing models maximizing the use of observable market data and relying as little as possible on the company’s subjective considera-tions. Financial assets are derecognised in the balance when all inher-ent risks and benefits are mainly transferred to the asset property. In

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the specific case of accounts payable, it is understood that this gener-ally occurs if the insolvency and default risks were transmitted. Assets designated as hedge items are subject to the requirements of hedge accounting valuation.

financial liabilities

This category includes accounts payable for trade and non-trade trans-actions. These borrowed funds are classified as current liabilities, un-less the Group has an unconditional right to defer its liquidity for at least 12 months after the balance date.

These debts are initially recognised at their fair value adjusted by the directly attributable transaction costs, later being recognised by their amortized cost according to the effective interest rate method. Said effective interest is the discount rate that equals the instrument’s car-rying amount with the expected flow of projected future payments up to the liability’s maturity.

Notwithstanding the above, the accounts payable for trade transactions with maturity below one year, and that do not have a contractual inter-est rate, are recognised, both initially and subsequently, by their nominal value when the effect of not adjusting the flows is not significant.

If existing debt is renegotiated, no substantial changes to the financial liability are deemed to exist when the lender of the new loan is the same as the lender of the initial loan and the present value of the cash flows, including net commissions, does not differ by more than 10% from the present value of the original liability’s outstanding cash flows, calculated using the same method.

Derivative instruments

The company uses derivative financial instruments mainly as a hedge against interest rate changes.

The company documents the hedging relationships and verifies that the hedging relationship is effective, i.e. that it is prospectively fore-seeable that the changes in the fair value or cash flows of the hedged item will be almost fully offset by those of the hedging instrument and that, retrospectively, the gain or loss on the hedge was within a range of 80- 125% of the gain or loss on the hedged item.

Qualified derivative financial instruments, in accordance with the previ-ous paragraph, such as hedging instruments, are recognised as assets or liabilities depending on their sign, for their fair value, with coun-terparty in the “Equity Hedges” account, until they mature, at which moment they are charged to the profit and loss accounts, at the same time as the hedging instrument.

Hedge accounting is discontinued when the hedging instrument ex-pires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. At this moment, any accumulated loss or profit corresponding to the hedging instrument is transferred to the profit and loss for the period.

5.9. EQuITy

Share capital is represented by ordinary shares. Issuance costs for new shares or options are directly presented against the equity, as lower reserves. When any of the Group’s companies acquire the company’s

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shares, the paid consideration, including any directly attributable in-cremental cost, is deducted from the equity until it is cancelled, issued again or sold. When these shares are sold or issued again later, any amount received, net of any direct attributable transaction cost, is in-cluded in the equity.

5.10. GRANTS, DONATIONS, AND BEQuESTS RECEIVED

Non-refundable grants, donations or gifts and bequests related to as-sets are recognised as such when there is a specific agreement relating to the award of the grant, the conditions established for the award of the grant were met and there are no reasonable doubts in rela-tion to the award thereof. Since 2009, as a result of the passing of Order EHA/733/2010, of March 25, certain accounting issues of public companies operating under certain circumstances were approved, like the case of grants awarded for the construction of assets the execu-tion of which has not yet been completed- grants were classified as non-refundable in proportion of the construction work completed provided that there are no reasonable doubts that the construction will be completed in accordance with the terms and conditions established in the concession agreement. In general, they are measured at the fair value of the amount or the asset granted and are initially recognised as income net of tax recognised directly in equity and are allocated to profit or loss in proportion to the period depreciation on the assets for which they were granted, except in the case of nondepreciable assets, the grants for which are allocated to profit or loss in the year in which the assets are disposed of or impairment losses are recognised. Gov-ernment grants to compensate costs are recognised in profit or loss on

a systematic basis over the periods in which the Group recognises as expenses the related costs for which the grants are intended to com-pensate.

Refundable grants, donations or gifts and bequests received are recog-nised as liabilities of the company until they become non-refundable or are repaid.

Grants related to income are credited to income when granted, un-less their purpose is to finance losses from operations in future years, in which case they are allocated to income in those years. If grants are received to finance specific expenses, they are allocated to income as the related expenses are incurred, being recognised in the meantime as li-abilities of the company until they become non-refundable or are repaid.

5.11. PROVISIONS AND CONTINGENCIES

In preparing its consolidated financial statements, the Group distin-guishes between:

a) Provisions: credit balances covering present obligations arising from past events with respect to which it is probable that an outflow of resources embodying economic benefits that is uncertain as to its amount and/or timing will be required to settle the obligations.

b) Contingent liabilities: possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more future events not wholly within the Group’s control.

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The consolidated financial statements include all the provisions with respect to which it is considered that it is more likely that the obliga-tion will have to be settled. Contingent liabilities are not recognised in the consolidated financial statements, but rather are disclosed to the extent that they are deemed possible.

Provisions are measured at the present value of the best possible esti-mate of the amount required to settle or transfer the obligation to a third party. Where discounting is used, adjustments made to provisions are recognised as interest cost on an accrual basis.

5.12. PROVISIONS fOR EMPLOyMENT BENEfIT OBLIGATIONS ACQuIRED

The cost of the obligations arising from employee benefit obligations is recognised on an accrual basis, in accordance with the best estimate calculated using the data available to the Group.

The Parent has the commitment to pay out long term remunerations for personnel, both defined contributions and defined benefits. To pay out defined contributions, liabilities payable shall be recognised when, at year-end, there are unpaid accrued contributions. Whereas for the defined benefits, liabilities payable shall be recognised when, at year-end, there are unpaid accrued contributions In the case of defined benefit pay out the amount to be recognised as provision is the differ-ence between the current value of remunerations committed and the fair value of the assets assigned to the payment instruments used to pay for the obligations acquired.

Specifically, the accompanying balance sheet includes the following provisions for employment benefit obligations acquired:

Long-service bonuses

Article 138 of the Group’s First Collective Labour Agreement (Public Business Entity Aena and Aena Aeropuertos, S.A.) provides certain long-service bonuses for services effectively rendered for 25 and 30 years. The Group recognises the present value of the best possible esti-mate of future obligations, based on an actuarial calculation. The main assumptions used to obtain the actuarial calculation were as follows:


Salary growth: 2.0%





Disability tables: Ministerial order 1977:

Early retirement bonus

Under Article 154 of the Group’s First Collective Labour Agreement (Public Business Entity Aena and Aena Aeropuertos, S.A.), all employ-ees aged between 60 and 64 years of age who, pursuant to current legislation are entitled to do so, may retire early voluntarily and receive a termination benefit which, combined with the consolidated entitle-ments under the Pension Plan at the date of termination of their con-tracts, is equivalent to four months’ salary, calculated on the basis of

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their basic pay plus their long-service bonus, for every year remaining until they reach 64 years of age, or the related proportional part.

In 2004 the early retirement bonuses were externalised through a sin-gle premium life insurance policy taken out on 25 March 2004 with Mapfre Vida.

The Parent recognises the assets or liabilities arising from the difference between the present value of the remuneration commitments and the present value of the externalised plan assets. The main assumptions used in the measurement were as follows:


Salary increase: 3.00%

Returns on Contribution Fund: 4,00%

Mapfre guaranteed rate: 3.10%





5.13. TERMINATION BENEfITS

Under current employment legislation, the Group is required to pay ter-mination benefits to employees terminated under certain conditions.

Termination benefits that can be reasonably quantified are recognised as an expense in the year in which the decision to terminate the em-

ployment relationship is made. The directors of the Company do not foresee any terminations in the future that might make it necessary to recognise a provision in this regard.

5.14. INCOME TAx

Tax expense (tax income) comprises current tax expense (current tax income) and deferred tax expense (deferred tax income).

The current income tax expense is the amount payable as a result of income tax settlements for a given year. Tax credits and other tax ben-efits, excluding tax withholdings and prepayments, and tax loss car-ryforwards from prior years effectively offset in the current year reduce the current income tax expense.

The deferred tax expense or income relates to the recognition and derecognition of deferred tax assets and liabilities. These include tem-porary differences measured at the amount expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities and their tax bases, and tax loss and tax credit carryfor-wards. These amounts are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled.

Deferred tax liabilities are recognised for all taxable temporary differ-ences.

Deferred tax assets are recognised to the extent that it is considered probable that the Parent will have taxable profits in the future against which the deferred tax assets can be utilised.

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Deferred tax assets and liabilities arising from transactions charged or credited directly to equity are also recognised in equity.

The deferred tax assets recognised are reassessed at the end of each re-porting period and the appropriate adjustments are made to the extent that there are doubts as to their future recoverability. Also, unrecognised deferred tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become probable that they will be recovered through future taxable profits.

The society files consolidated taxes within the scope of consolidation of its sole shareholder with certain subsidiaries to comply with the con-ditions laid down for this purpose. The companies which formed the tax group, together with the Company, in 2011 were as follows:

1. The Public Business Entity “Aeropuertos Españoles y Navegación Aérea”.

2. Aena Aeropuertos, S.A.

3. Aena Desarrollo Internacional, S.A.

4. Centros Logísticos Aeroportuarios, S.A. (CLASA).

5.15. fOREIGN CuRRENCy TRANSACTIONS

The Group’s functional currency is the euro. Therefore, transactions in currencies other than the euro are deemed to be “foreign currency transactions” and are recognised by applying the exchange rates pre-vailing at the date of the transaction.

Any exchange differences arising on settlement or translation at the closing rates of monetary items are recognised in the consolidated in-come statement for the year.

5.16. REVENuES AND ExPENSES

Revenue and expenses are recognised on an accrual basis, i.e. when the actual flow of the related goods and services occurs, regardless of when the resulting monetary or financial flow arises.

Interest income from financial assets is recognised using the effective interest method and dividend income is recognised when the share-holder’s right to receive payment has been established. Interest and dividends from financial assets accrued after the date of acquisition are recognised as consolidated income.

5.17. ACTIVITIES WITH ENVIRONMENTAL IMPACT

Environmental activities are those the purpose of which is to prevent, reduce or redress damage to the environment.

In this respect, investments made in connection with environmental activities are measured at acquisition cost and are capitalised as an ad-dition to non-current assets in the year in which they are made.

The expenses arising from environmental protection and enhancement measures are charged to income in the year in which they are incurred, regardless of when the resulting monetary or financial flow arises.

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The provisions for probable or certain third-party liability, litigation in progress and outstanding environmental indemnity payments or obli-gations of undetermined amount not covered by the insurance poli-cies taken out are recognised, where appropriate, when the liability or obligation giving rise to the indemnity or payment arises.

5.18. RELATED PARTy TRANSACTIONS

The Company performs all its transactions with related parties on an arm’s length basis. Also, the transfer prices are adequately supported and, therefore, the directors of the Company and its subsidiaries con-sider that there are no material risks in this connection that might give rise to significant liabilities in the future.

As a general rule, transactions among group companies are recognised at the beginning at their fair value. If the agreed price differs from the fair value, the difference is recognised by reference to the economic reality of the operation. The subsequent valuation is made pursuant to the stipulations of the corresponding regulations.

However, in case of merger,s splits or nonmonetary contributions to a business, the constituent elements of the acquired business are valued at the amount corresponding to them after the operation in the con-solidated annual profit of the group or subgroup.

Whenever the Parent, or the group or subgroup and its subsidiary are not involved in the operation hereto, the accounts to consider in this connection shall be those of the larger group or more subgroup inte-grating the assets and belonging to a Spanish parent company.

In these cases the difference arising between the net value of the as-sets and liabilities of the acquired company, adjusted by the balances of grants, donations and bequests received and value adjustments, and any amount of capital and share premium issued by the acquiring company, is recognised in reserves.

5.19. BuSINESS COMBINATIONS

Any mergers, spin-offs or nonmonetary contributions between compa-nies of the same group, are recognised pursuant to the stipulations for operations between related parties (Note 5.18).

The purchase method of recognition shall be used for every other merger or spin-off operation, and for those business combinations arising from the acquisition of the totality of the company’s assets, or of a portion constituting one or more business.

For business combinations arising as consequence of the purchase of shares of a company, the group recognises the investment pursuant to the stipulations for investments in the companies of the group, multi-group and associated.

6. Financial risk management

The Group’s activities are exposed to various financial risks: market risk, credit risk and liquidity risk. The company’s global risk management program is focused on the uncertainty of financial markets and intends

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to minimize the potential adverse effects on its financial profitability. The Board establishes policies for global risk management, as well as for certain areas such as interest rate risk, liquidity risk, use of deriva-tives and non-derivatives and investment of excess liquidity.

The main principle of the financial policies of the companies compos-ing the Aena Group is based on their being centralized at the Admin-istration and Finance department, to the extent that all the financial assets and liabilities are arranged and managed by this department.

According to a financial debt recognition agreement between Aena Aeropuertos, S.A. and its parent company, Aena Aeropuertos, S.A. recognises 94.9% of the Parent’s financial debt, which holds and man-ages 100% of the debt with financial institutions.

The main financial risks are as follows:


The Company’s objective in relation to interest rate risk management is to optimise the finance costs within the risk limits established. The Group does not usually perform commercial transactions in currencies other than the euro (unlike subsidiaries such as Aena Desarrollo Inter-nacional), and accordingly, the finance cost risk is focused on interest rate risk in the case of the Parent, the risk variables being the three-month Euribor (used for non-current payable) and one-month Euribor (used in credit facilities).

The finance cost risk is also calculated for the duration of the Plurian-nual Action Plan (PAP), establishing interest rate performance scenarios for the period in question.

Finance costs are due mainly to the financial debt acknowledged to the Parent company. Also, the Parent has interest rate hedging con-tracts in force which are transferred to the company as described in Note 15. The cost of 94.9% of those derivatives is being allocated to the company, for they cover such percentage share of interest rate risk of some loans.

b) Liquidity risk

The main risk variables are: limitations in the financing markets, in-crease in forecast investment and decrease in cash-flow generation.

In order to maintain sufficient liquidity to meet the financial require-ments over a minimum of twelve months, a long-term financing policy was established by signing agreements or framework agreements with institutions such as Instituto de Crédito Oficial and the European In-vestment Bank, and by arranging short- and medium-term liquidity lines. The Parent company raises outside financing to fund Aena Aero-puertos, S.A. through contracts of acknowledgement of debt.

c) Credit risk

Credit risk is almost non-existant, given that most of our customers are airlines and receivables are either in cash or in advance. With regard to the commercial customers, which maintain leased premises in dif-ferent airports, risk is managed by obtaining guarantees and sureties. The company keeps its cash and cash equivalents under the centralised control of the Administration and Finance department of the Public Business Entity Aeropuertos Españoles y Navegación Aérea, through cash-pooling accounts (Note 15).

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7. Intangible Assets

Changes in intangible assets between 2011 and 2010 were as follows (in EUR thousand):

CostDevelopment Expen-

ditureComputer Software

Other Intangible Assets

Other Intangible Assets in progress

Total

Opening Balance - - - - -

Additions for consolidation - 315 - - 315

Non- monetary contribution 787 35,018 5,532 39,920 81,257

Additions 9 13,941 137 9,843 23,930

Disposals / reductions - 7,000 (252) (7,925) (1,177)

Transfers (Note 8) - (17) - - (17)

End Balance 796 56,257 5,417 41,838 104,308

Amortisation

Closing Balance - - - - -

Additions for consolidation - (31) - - (31)

Additions (186) (10,861) (1,165) - (12,212)

Amortisation charge(*) (6) (353) (51) - (410)

Disposals / reductions - 17 - - 17

Transfers (Note 8) - - 1,331 - 1,331

End Balance (192) (11,228) 115 - (11,306)

Net: 604 45,029 5,532 41,838 93,003

(*) Related to the amortisation charge between June 1 and June 8, 2011, date the non - monetary contributions balances, were transferred internally to the Shareholder with-out affecting its value.

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2011 Annual report

The cost of additions and accumulated amortisation of the nonmon-etary contribution were, EUR 325,488 and 244,231 thousand respec-tively

During 2011, the Parent acquired the following intangible assets to re-lated companies (in EUR thousand)

2011

Gross book valueAccumulated amorti-

sation

Development expenditure 900 -

Computer software 843 -

Other intangible assets 4,062 (61)

Total 5,805 (61)

The main additions in 2011 to “Computer Software” were related to acquisitions and to improvements to and the development of new technology for computer software, in particular in relation to naviga-tion and airport central services.

Of the total capitalised costs on 31 December 2011 and 2010 of the different types of intagible assets, assets in progress are included with the following detail: (in EUR thousand):

2011

Development expenditure 1,709



Total 41,838

In 2011 the company capitalised EUR 259 thousand relating to finance costs incurred during the development period of intangible assets.

On 31 December 2011, intangible assets with an original cost of EUR 225,410 thousand were fully amortised and are still in use:

Gross book value



Total 225,410

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2011 Annual report

8. Property, Plant and EquipmentChanges in “Property, Plant and Equipment” in 2011 were as follows ( in EUR thousand):

CostLand and Buil-

dingsPlants and machi-

nery

Other fixtures, Tools and Furni-

ture


the course of

Other Property, Plant and Equip-

mentTotal

Opening Balance - - - - - -

Additions for consolidation 1,646 6,766 389 60 680 9,541

Non monetary contribution 11,122,695 555,149 2,393,063 131,205 1,669,760 15,871,872

Additions 515,090 23,566 87,024 25,473 219,291 870,444


Transfers (Note 7) 285,745 27,189 83,195 12,966 (409,078) 17

End Balance 11,886,877 603,303 2,553,993 146,307 1,377,163 16,567,643

Amortisation

Opening Balance - - - - - -

Additions for consolidation (436) (1,749) (244) (78) - (2,507)

Additions (257,620) (46,870) (6,502) (162,921) - (473,913)

Amortisation charge(*) (9,966) (1,699) (5,669) (518) - (17,852)

Disposals / reductions 14,751 9,128 7,508 23,014 - 54,401

Transfers (Note 7) (4,161) 2,846 (247) 230 - (1,332)

End Balance (257,432) (38,344) (5,154) (140,273) - (441,203)

Net: 11,629,445 564,959 2,548,839 6,034 - 16,126,440

(*) Related to the amortisation charge between June 1 and June 8, 2011, date the non - monetary contributions balances, were transferred internally to the Shareholder with-out affecting its value. (Note 4).

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2011 Annual report

The cost of additions and accumulated amortisation of the nonmon-etary contribution were EUR 21,686,940 and 5,815,068 thousand, re-spectively.

The Parent owned property with a separate value for the land and the Buildings at 2011 year-end as follows (in EUR thousand):

Gross book value

Land 3,577,555

Buildings 8,309,322

Total 11,886,877

During 2011, the Parent acquired the following “Property, Land and Equipment” from related companies (in EUR thousand):

2011

Gross book value

Accumulated amortisation

Buildings 496 8

Plant and machinery 147 3

Other fixtures, tools and furniture - -


19,398 -

Other Property, Land and Equipment - -

Total 20,041 11

Interest expenses incurred in 2011 totalling EUR 20,210 thousand were capitalised in relation to the financing of property, plant and equipment in the course of construction and EUR 3,052 thousand were capitalised in relation to environmental costs, and EUR 230,156 thousand related to the fair value of expropiations, and EUR 3,689 thousand were capi-talised in relation to in-house work performed on its property, plant and equipment

a) Non-current asset additions

The main additions recognised in 2011 were as follows:

Land and buildings

The additions to “Land” amount to EUR 515,090 thousand and relate mainly to the land acquired to carry out expansions at various airports.

The main additions to “Buildings” in 2011 relate to the following:

• Construction of the new terminal building in the Santiago de Com-postela Airport.

• Car park building and technical block for the Vigo Airport.


The main additions under construction in 31 December 2011, relate to construction work to expand the Malaga Airport airfield, the restora-tion of the terminal building in Ibiza, and the enlargement of Termi-nal T-2 building in Gran Canaria, and the expansion of runways in La Coruña.

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2011 Annual report

Plant and other items of property, plant and equipment

The main additions recognised in 2011 mainly correspond to:

• Fire Prevention Systems and facility integral management in the Ali-cante Airport.

• Installation of ventilation and air-condition systems, and installation of fire prevention system of in the Menorca Airport.

• Restoration of the ventilation tunnel for airport service and electri-cal connection for the south cargo module in the Madrid-Barajas Airport.

• Air-conditioning system in the terminal building and, baggage han-dling and screening system, and expansion of electrical supply ca-pacity in the La Palma Airport,

• Improvements in the reliability of the electrical system and works carried out in the processor terminal building of Barcelona-El Prat.

b) Disposals

The main disposals in 2011 relate to withdrawals from facilities and other assets in Madrid-Barajas, La Palma, Gran Canaria, Tenerife South and Barcelona-El Prat

Disposals in 2011 include, essentially, the following items, for which the loss incurred upon disposal was not recognised in the income statement:

• Reversals of provisions recognised in prior years for environmental risks of EUR 39,126 thousand in order to comply with prevailing legislation.

c) Deterrals

The Parent took the “Property, Plant, and Equipment” impairment test and no adjustments were identified on 31 December 2011.

d) Grants received

On 31 December 2011, the Parent received grants in connection with its property, plant and equipment and intangible assets for an accumu-lated amount of EUR 460,987 thousand (net of tax), (see Note 18-l). The gross cost of the assets associated with these grants is EUR 2,337 million.

Additionally, the Parent has grants engaged and not executed for a total amount of EUR 102,601 thousand.

e) Limitations

Land, buildings and facilities provided, have lost the status of goods in the public domain due to the reversal carried out by Article 9 of Royal Decree-law 13/2011 of December 3, which provides that all State public domain goods attached to the Entidad Pública Empre-sarial Aena not related to air navigation services including those for aerodrome air traffic services, will cease to be of public domain, although the expropriation aim is not altered, so the reversal shall not be necessary.

f) fully amortised items of property, plant and equipment

On 31 December 2011, there was property, plant and equipment in use and fully amortised, the detail being as follows (in EUR thousand):

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2011 Annual report

Gross book value

Buildings 748,760

Plant and machinery 282,058

Other fixtures, tools and furniture 374,107


133,433

Total 1,538,358

g) Obligations

On 31 December 2011, the investments yet to be performed amounted to approximately EUR 858 million, comprising both contracts that had not yet been formalised and firm contracts not yet executed.

h) Asset by Business Line

The detail of assets by business line on 31 December 2011 is as follows (in EUR thousand):

Description 2011

Airports 15,449,053

Car parks 620,913


56,474

Total 16,126,440

i) Insurance policies

The Group takes out insurance policies to sufficiently cover the pos-sible risks to which its property, plant and equipment are subject. On 31 December 2011, property, plant and equipment were fully insured against such risks.

j) Leases

The Group leases part of the non-current assets to third parties for commercial operations (Note 10).

9. Investment Property

“Investment Property” in the consolidated balance sheet includes the value of buildings, other structures and fixtures held to earn rentals, with the exception of land used by the subsidiary Centros Logísticos Aeroportuarios, S.A for its activity.

The changes were the following (in EUR thousand):

Land and Buildings

Plant Other fixtures Total

Opening Balance - - - -

Consolidation addi-tions

111,533 5,323 26 116,882

Additions 789 731 - 1,520

Closing Balance 112,322 6,054 26 118,402

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2011 Annual report

Land and Buildings

Plant Other fixtures Total

Accumulated Amortisation

Opening Balance - - - -

Consolidation addi-tions

(26,519) (2,332) (16) (28,867)

Additions (3,156) (306) (2) (3,464)

Closing Balance (29,675) (2,638) (18) (32,331)

Net: 82,647 3,417 8 86,071

Investment property additions

The main additions in 2011 relate to technology facilities associated with energy efficiency and sustainable development and other techni-cal facilities in the central services buildings of the subsidiary Centros Logísticos Aeroportuarios, S.A.

Investment property obligations

At 2011 year-end, no investment property items were subject to guar-antees, and there were no associated purchase commitments.

Insurance policies

The Group takes out insurance policies to cover the possible risks to which its investment property is subject. At 2011 year-end, the Group was reasonably insured against such risks.

fully depreciated investment property

On 31 December 2011 there were no fully depreciated investment property items that were still in use.

10. Leases

financial leases

At 2011 year-end, the subsidiary Aena Desarrollo Internacional had ar-ranged a finance lease on an automated flight inspection system (con-sole) which is recognised under “Property, Plant and Equipment” in the accompanying consolidated balance sheet On 31 December 2011 (see Note 8).

On 31 December 2011, the amount of the minimum lease payments payable in the future, excluding inflation increases or other contingent payments arising from the aforementioned finance lease, were as fol-lows (in EUR thousand):

2011

Minimum Finance Lease Payments

Interests


Between one and five years 2,124 77

After five years - -

Total 2,589 120

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2011 Annual report

Operating leases

The Parent uses various assets under operating leases arranged with third parties, of which the most noteworthy are detailed below, together with the main characteristics of the related contracts (EUR thousand):

Asset Location Lease Expiry date

Annual Payments excluding

VAT

Comments

Piovera Building (1)

Madrid 31/01/2016 3,874Payments subject toreview based on CPI

Senasa Building 2

Madrid31/12/12 (automatic annual extension up

to 5 years)140

Payments subject toreview based on CPI

(1) The company has an agreement to provide general services with the public corpo-rate entity “Aeropuertos Españoles y Navegación Aérea” under which the company assumes the total amount of annual income, and charges the public entity its share of the costs.

The amount of minimum lease future proceeds for non-cancellable operating lease are the following (in EUR thousand):

2011

Within a year 4,014


Total 24,083

The subsidiary Aena Aeropuertos S.A. leases several shops and stores under non-cancellable operating lease contracts. The duration of the contracts herein ranges between five and ten years, and most of them are renewable upon expiry date under market conditions.

The amount of minimum lease future proceeds for non-cancellable operating lease are the following:

2011

Within a year 673,707

Between one and five years 3,197,297

Total 3,871,004

At the end of 2011, the subsidiary CLASA had contracted with tenants for the following minimum lease payments, based on the leases cur-rently in force, without taking into account the charging of common expenses, future increases in line with the CPI or future contractual lease payment revisions (in EUR thousand):

2011

Within a year 1,253


Over five years 252,202

Total 258,683

These leases relate mainly to the assets included under “Investment Property” with an original cost of EUR 116,838 thousand receiving annual rental income of EUR 17,710 thousand. The total built area measures 137 thousand square metres.

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2011 Annual report

11. Investments in companies accounted for using the equity method

Investments in companies accounted for using the equity method

The detail and changes in investments in companies accounted for using the equity method is as follows: (in EUR thousand):

Balance on 31.12.10

Share of results of investees

Dividends paidExchange rate diffe-

rencesOther

Balance on 31.12.11

RAESA 1,353 1,277 (735) - - 1,895

SACSA 1,891 916 (289) 48 99 2,665

AMP 66,894 2,184 (2,421) (5,405) - 61,252

ACSA 677 1,150 (754) 17 - 1,090

AEROCALI 1,432 557 - 37 - 2,026

Total 72,247 6,084 (4,199) (5,302) 99 68,929

Transactions and balances in companies accounted for using the equity method

The breakdown of receivables and payables and the detail of the transactions performed with companies accounted for using the equity method on 31 December 2011 (in EUR thousand):

Amount Receivable Sundry Accounts Payable Income from services

providedExpenses of services

providedFinancial Income

RAESA 4,949 156 11,087 345 735

ACSA 27 - 298 - -

SACSA 52 - 417 - -

AMP 1,145 - 3,196 - -

Aerocali 15 - 256 - -

Total 6,189 156 15,254 345 735

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2011 Annual report

12. Financial Assets

financial Assets and Liabilities

Category analysis

Financial assets excluding investments in subsidiaries equity except investments in equity of associated and group companies

The book value of every category of financial instrument established in the regulatory financial reporting network as s “Financial instrument” on 31 December 2011, was as follows (in EUR thousand):

Categories/typesLong-term

Equity instruments Other Total

Held-for-trading financial assets: 57,786 - 57,786

- Valued at cost 57,769 - 57,786

Held-to maturity investments - 1,138 1,121

Total 57,769 1,138 58,907

Categories/typesShort-term

Loans to companies Other financial instruments Total

Loans and receivables with the Group 44,619 16,886 61,505

Loans and receivables 472 258,814 259,286

Total 45,091 275,700 320,791

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2011 Annual report

Maturity analysis

On 31 December 2011, the amounts of financial instruments with a fixed or fixable maturity classified by year of maturity were as follows (in EUR thousand):

Financial liabilities

2012 2013 2014 2015 2016 and other Total

Bank borrowings and other financial liabilities 2,846 2,750 2,750 333 668 9,347

Payable to suppliers 2,050,128 887,165 885,653 937,622 8,439,235 13,199,803

Total 2,052,974 889,915 888,403 937,955 8,439,903 13,209,150

Financial liabilities

Categories/typesLong term

Bank borrowings and other financial liabilities

Derivatives and other Total

Accounts payable 6,501 11,149,675 11,156,176

Total 6,501 11,149,675 11,156,176

Categories/typesShort term

Bank borrowings and other financial liabilities

Derivatives and other Total

Accounts payable 2,846 2,050,128 2,052,974

Total 2,846 2,050,128 2,052,974

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2011 Annual report

13. Non-current financial assets

The detail of non-current financial assets is as follows (in EUR thousand):

2011

Held-for-trading financial assets 57,769

Guarantee deposit 1,138

Total 58,907

Held-for-trading financial assets

In this heading we include the debt securities value and equity instruments of other companies the Group does not hold any control or have any significant influence over their decision-making process. In this case, the Group records its minority shareholdings in the following companies (in EUR thousand):

Name and location Line of business Interest ValueFraction of Direct

Capital (%)Owner of the Interest

Agencia Barcelona Regional Edificio Centreservei, Zona Franca Carrer 60, 25-27 Barcelona (2)

Analyses and prospecting in relation to urban development, regional and envi-ronmental matters. Design, development, management, implementation, execution and operation of, and consulting on, all manner of construction work, buildings and urban infrastructures and systems in the metropolitan area.

180 11.76 Aena Aeropuertos, S.A.

Airport Concessions and Develop-ment Limited (ACDL)10, Upper Bank St- London – U.K. (1) (*)

Financial asset management of TBI airport group.

57,422 10Aena Desarrollo,

Internacional, S.A.

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2011 Annual report

Name and location Line of business Interest ValueFraction of Direct

Capital (%)Owner of the Interest

European Satellite Service Provider, SAS (ESSP SAS) Toulose – Francia (1)

Development of satellite navigation sys-tem.

167 16.67Aena Desarrollo

Internacional, S.A.

Total 57,769

(*) This company has a provision for shareholding impairment EUR 21,174 thousand, and a book value of EUR 78,596 thousand.

(1) Company audited by other auditors.

(2) Companies audited by the PwC network.

As these companies were not listed on regulated markets on 31 De-cember 2011, the estimation of their fair value is not reliable. For this reason, shares are recognised at cost value, with an applicable cor-rection in value, of the difference between their book value and the recoverable value.

14. Trade receivables for sales and services

The breakdown for “trade receivables for sales and services ” in the consolidated balance sheet at 2011 year-end is as follows (in EUR thousand):

2011

Trade receivables for sales and services 240,727

Doubtful trade receivables 84,594

Minus: provision for impairment (84,594)

Customers, group companies and associates 16,886

Sundry accounts receivable 7,568

Staff 1,462

Other accounts receivable from public authori-ties

136,873

Total 403,516

On March 5, 2011 the Official Spanish Gazette published Law 1/2011, amending Law 21/2003 of 7 July on Aviation Safety, which approves that for the management, clearance and recovery of all equity benefits of a public nature, both Aena Aeropuertos, S.A. and its subsidiaries,

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2011 Annual report

may use, for the effectiveness of the recovery urgency, whose manage-ment will be made by State Tax Administration Agency.

A significant portion of the balances recognised in the heading trade receivables for sales and services belong to the following companies (in EUR thousand):

2011

Iberia, Líneas Aéreas de España, S.A. 44,243

Aldeasa, S.A. 26,139

Vueling Airlines, S.A. 18,143

Air Europa Líneas Aéreas, S.A. 8,384

Dufry Islas Canarias, S.R.L. 7,050

Easy Jet Airlines Co. Ltd. 5,352

Publimedia Sistemas Publicitarios, S.L. 3,954

Otros 127,461

Total 240,726

Losses on, impairment of and changes in allowances for trade receiva-bles for 2011 were as follows (in EUR thousand):

2011

Opening balance -

Addition for business combination 124,300

Change in impairment 5,879

Other changes 2,000

Adjustment for legal proceedings (47,585)

Total 84,594

15. Non-current payable and current payable

The detail of “Non-current payable” and “current payable” on 31 De-cember 2011 is follows (in EUR thousand):

2011

Long term Short term

Short-term debts with group companies and associates.

11,144,645 884,512

Debts with credit entities 6,501 2,846

Obligations under finance leases 2,124 465

Derivatives 49 -

Non- current assets payable 2,857 625,556

Debts with group companies and as-sociate- Cash pooling

- 202,765

Total 11,156,176 1,716,144

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2011 Annual report

ReceivableShort-term

credits (Taxes)Long-term

debtsShort-term

debts

Non- current assets paya-

bleAccounts

payable Cash Pooling

Other liabi-lities

Parent company:

Public Corporate Entity “Aeropuertos Españoles y Navegación Aérea”

10,671 44,619 11,144,645 867,197 - 202,765 2,831

Transactions with companies accounted for using the equity method:

Restauración de Aeropuertos Españoles, S.A. (RAESA) 4,949 - - - - - -

ACSA 27 - - - - - -

SACSA 52 - - - - - -

AMP 1,145 - - - - - -

Aerocali 15 - - - - - -

Related party transactions:

Ingeniería y Economía del Transporte, S.A. (INECO) 26 - - - 14,393 - -

Centro de Referencia Investigación, Desarrollo e Innovación ATM A.I.E. (CRIDA)

- - - - 91 - -

Total 16,886 44,619 11,144,645 867,197 14,484 202,765 2,831

15.1 BALANCES Of RELATED PARTy TRANSACTIONS

The detail of accounts receivable and payable with group companies and related parties at 2011 year-end is as follows (in EUR thousand):

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2011 Annual report

The detail of transactions with group companies and related parties at 2011 year-end is as fol-

lows (in EUR thousand):

Income for ser-vices provided

Non-current assets

transfer(*)

Services received

Non-current assets purchase

Dividends received

Financial income

Losses recognised in hedging

instruments

Financial expensess

AENA (Public Entity) 11,847 (1,396) 153,576 - - - 12,896 188,773

CRIDA 2 - - 900 - - - -

INECO 85 - 10,246 24,947 - - - -

Companies accounted for using the equity method:

RAESA 11,087 - 345 - - (735) - -

ACSA 298 - - - - - - -

SACSA 417 - - - - - - -

AMP 3,196 - - - - - - -

Aerocali 256 - - - - - - -

Other related parties:

GAP - - 124 - - - - -

TBI 229 - - - - - - -

ACDL - - - - 1,744 - - -

Total 27,417 (1,396) 164,291 25,847 1,744 (735) 12,896 188,773

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2011 Annual report

Hedging instrument for cash flows

The Group has arranged a hedging instrument for cash flows arising from changes in exchange rates, which are being transferred to Aena Aeropuertos, S.A. to hedge risk between the two companies. On 31 December 2011 the detail is as follows (in EUR thousand):

Classification Type 31/12/2011 Beginning Maturity Liquidated

Interest rate swap Interest rate hedgeFloating (3-month Euribor) to

fixed (2.8025%)1,194,391 15/03/2011 15/03/2013 Quarterly

Interest rate swap Interest rate hedgeVariable (Euribor 3M) a Fijo

(2,57%)255,000 15/12/2011 15/03/2016 Quarterly

Interest rate swapHedging instrument for ex-change rate cash flows

Hedging for cash flows in USD - 8/10/2014 8/10/2014 (*)

(*) The maturity (partial amortizations) of this hedging instrument coincides with the year in which the cash flow hedge is expected to occur (collected in USD), and that could affect profit and loss account.

The outstanding notional principal amounts of the interest rate swap agreements on December 31, 2011 totalled EUR 1,449,391 thousand. On December 31, the fixed interest rates varied be-tween 2.57% and 2.8025% and principal variable interest rates were Euribor 3 months. These loans and derivatives of the parent company were destined to airport financing, therefore the parent company charged the company for the interest and amortization costs thereof. During 2011, EUR 12,896 thousand was charged to the loss and profit account for losses on hedging instruments.

Fair value recognised in the “Non-current liabilities” on December 31, 2011 (in EUR thousand) though the mirror debt

Fair value recognised in the “Current liabilities” on December 31, 2011 (in EUR thousand) though the mirror debt.

32,180 1,895

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2011 Annual report

“Long-term debt” includes EUR 11,047,409 thousand of loans payable to the group for airport financing with an established sched-ule, EUR 65,056 thousand for accounts re-ceivable that correspond to the Public com-pany and that have not been adjusted in the non-cash contributions balance. This balance was provisioned and in means of collection. Likewise, “Short-term debt” recognises EUR 627,386 thousand of short-term loans pay-able to the group. The same heading also recognises the credit available from the loan agreements with the group for the amount of EUR 161,319 thousand and accrued un-matured interest for the amount of EUR 76,597 thousand from December 31, 2011. In the same manner, the long and short-term debts include the effect of the hedging in-struments.

In addition, this heading includes the cash pooling account balance for the amount of EUR 197,264 thousand that mainly corre-sponds to current accounts.

Said accounts earn interest at the average credit line rate.

Aena Desarrollo Internacional, S.A. arranged an interest rate derivative on October 1, 2007

with “La Caixa”, in order to control and reduce the potentially adverse impact of variable exchange rate changes on its profit or loss. This derivative particularly covers the effect of ex-change rate oscillations on the financial burden associated with the loan granted by “La Caixa”. This derivative financial instrument, since it does not meet the conditions to be considered a hedging financial instrument, has been included in the “Derivatives” heading of current and non-current assets of the 2010 and 2011 balance sheets, respectively.

The main characteristics of this derivative financial instrument are the following (in EUR thou-sand):

Classification RateAmount Con-tracted (EUR thousand)

Maturity

Fair Value recognised in the “Current Lia-bilities” on 12-31-11

(Euros) (Note 11)

Interest rate swap

Interest rate coverage

Fixed interest swap of 4.83% against floating

interest rate

2,000 1-10-12 48,601

Long-term and short-term debt:

Approximately 47% of the loans and credits were arranged with fixed annual interest rates of between 1.79% and 4.88%, with the remainder arranged at floating rates generally tied to the Euribor.

With regard to the contribution in kind described in Note 4, the Parent company and its sole shareholder signed a financing agreement by which debt corresponding to the sector receiv-ing the contribution, in the capital increase described in said Note 4, is transferred from the state-owned corporation “Aeropuertos Españoles y Navegación Aérea” to the parent company Aena Aeropuertos, S.A. In said agreement, both parties recognise the initial debt and the future cancellation conditions for said debt, as well as the procedure for the settlement of interests and debt repayment. The agreement also specifies that the title before the lending financial in-

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2011 Annual report

stitutions corresponds to the State-owned Corporation “Aeropuertos Españoles y Navegación Aérea”, however, it also recognises that they undertake to service the liabilities for any payments that State-owned Corporation “Aeropuertos Españoles y Navegación Aérea” may owe to the financial institutions, as well as other terms and conditions set forth in the Financing Agreements.

Therefore, the Company undertakes by means of this agreement the totality of the obligations originally established in the agreements with the financial institutions for the corresponding amount indicated in the previous paragraph. This means that the maturity and interest rate payable by the Parent Company to the State-owned corporation “Aer-opuertos Españoles y Navegación Aérea” shall be those described in the agreements with the financial institutions and the ratios or decla-ration of early maturity and possible financial instruments detailed in each of the agreements shall be fulfilled.

With regard to the financial instruments and their valuation, the state-owned company passed on to the Parent company a EUR 12,896 thousand loss for coverage instruments.

With regard to the fulfilment of ratios or non-fulfilment of early ma-turity declaration causes, the state-owned company “Aeropuertos Es-pañoles y Navegación Áerea,” as holder of financing agreements does not fail to fulfill any of the early maturity conditions, therefore the company’s balance sheet on December 31, 2011 would not be af-fected.

The maturity schedule of outstanding installments of loans and credits at the closure of 2011 is the following (in EUR thousand):

Maturity of installments

2012 627,386

2013 792,240

2014 883,206

2015 935,175

2016 918,508


Total 11,674,795

Main agreements

The existing agreements between the state-owned company “Aerop-uertos Españoles y Navegación Aérea (Aena)” and Aena Aeropuertos for 2011 are listed below:

• Procedure for providing services of cash management centraliza-tion.

• Agreement for providing airport planning and territorial integration services.

• Agreement for provision of services: administrative and financial, contract management, infrastructure management, management of personal data protection measures, environmental area, admin-istrative and economic processes, excellence promotion and sup-

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2011 Annual report

port, organization and human resources, general services and ICT services.

• Procedure for provision of cash management centralization services (cash pooling).

• Commitment to provide services associated to strategic and struc-tural processes/activities of the State-owned Company and Aena Aeropuertos, S.A.

• Agreement for use of airport facilities.

• STA Agreement

16. Information on deferred payments made to suppliers.

The records of payments for commercial operations carried out dur-ing the fiscal year and outstanding at the closing with regard to the maximum legal deadlines set forth in Law 15/2010, are the following:

2011

Thousands Euros

%

FY payments made within legal period 503,690 99%

Remainder 5,110 1%

Total payments made in 2011 508,800

Excess payments (Days) 53

Oustanding balance at year-end exceeding the maximum legal period

942

This balance relates to suppliers that, due to their nature, are provid-ers of goods and service, therefore it includes the figures relating to “Trade creditors and Other Payable” in the consolidated balance sheet.

17. Inventories

The breakdown of inventories is as follows (in EUR thousand):

2011

Spare parts 5,332

Inventory write-downs (134)

Supplier Advances 26

Total 5,224

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2011 Annual report

18. Equity and Shareholders’ equity

a) Equity and assigned assets

The parent company of the group was created 31 May 2011 with a initial capital of 61,000 euros (EUR 1,000 for 61 shares) contributed by the sole shareholder, the Public Corporate Entity “Aeropuertos Españoles y Nave-gación Aérea (Aena)”. On 6 June 2011, the Board of Directors of Aena approved a capital increase with the nonmonetary contribution of the airport line of business and adopted the following decisions:

• To reduce the par value of the company shares by ONE THOUSAND EUROS (€1,000) per share by dividing the 61 shares, resulting in €10 per share, and represented by 6,100 shares.

• To increase company capital to 1.5 billion euros via the contribu-tion of 1.49 billion euros (issuing 149,993,900 shares at 10 euros/share). These shares are to be issued with a share premium of 1.1 billion euros; thus, capital and share premium amount to a total of 2.6 billion euros.

b) Reserves

Share premium

The share premium is freely available.

Bylaw reserves

Bylaw reserves are to be recognised in accordance with Article 274 of the Capital Company Law., which stipulates that, in any event, an amount equal to 10% of the annual profit must be recognised as by-

law reserves, up to 20% of the Shareholder’s equity. Bylaw reserves, as long as they do not reach that limit, are designed to offset losses given that there are no other reserves available for that purpose.

c) Adjustments for changes in value

The composition of the “conversion differences” is as follows (in EUR thousand):

2011

Opening balance -

Hedge transactions:

- From the Parent (23,852)

- From consolidated companies (297)

Closing balance (24,149)

d) Conversion differences with associates accounted for using the equity method

Changes in “Conversion differences” are as follows (in EUR thou-sand):

2011

Opening balance -

Conversion differences of the year:

- Consolidated companies -

- Companies accounted for using the equity method

(5,312)

Closing balance (5,312)

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2011 Annual report

e) Grants, donations and bequests received

Changes and details under this heading on 31 December 2011 are as follows (in EUR thousand):

Opening balanceAdditions for non-monetary contri-

butionOther

Loss Allocation

Balance on 31/12/2011

Equity Grants from Official European bodies

Amount - 684,000 (1,845) (21,950) 660,205

Tax effect - (205,832) - 6,585 (199,247)

Net - 478,168 (1,845) (15,365) 460,958

FEDER Grants

The detail of gross grants by operational program recognised in the net equity in 2011 is as follows (in EUR thousand):

Item Charges 2011

Prog Oper. C. Canarias 30,072

Prog Oper. C. Galicia 13,185

Prog Oper. C. Andalucía 8,001

Prog Oper. C. Extremadura 125

Prog Oper. C. Murcia 4

Other Feder 6

Total Feder Funds Charges 51,393

At 2011 year-end the company declared its compliance with the required conditions for the reception and the profit derived from the aforementioned grants.

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2011 Annual report

f) Breakdown of Profit (loss) of the Parent:

The breakdown of the 2011 Profit (loss) proposed by the Board of Di-rectors is as follows (in EUR thousand):

Base of allocation

Profit and loss (loss) (93,894)

Application

Losses from previous years (93,894)

19. Provisions and contingencies

The changes in 2011 were as follows: (in EUR thousand):

Provisions for long-term

employee benefit obligations

Expropria-tions and in-

terest chargesResponsibilities Taxes


actions

Other operating provisions

Total

Opening balance 2011 - - - - - - -

Additions for consolidations - - - - - 74 74

Additions for business combina-tions (Note 3)

5,035 72,270 2,906 56,216 180,097 19,506 336,030

Charges 207 281,980 3,287 13,036 3,052 28,849 330,411

Additions discount 142 - - - 3,696 181 4,019

Reversals/Excessive (159) - (2,222) (6,661) (39,126) - (48,168)

Amounts used - (11,416) (1,357) (26,733) (9,375) (6,679) (55,560)

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2011 Annual report

Provisions for long-term

employee benefit obligations

Expropria-tions and in-

terest chargesResponsibilities Taxes


actions

Other operating provisions

Total

Transfers - - - 11,847 (40) - 11,807

Closing balance 2011 5,225 342,834 2,614 47,705 138,304 41,931 578,613

Short-term - 126,252 - - 39,270 41,931 207,453

Long-term 5,225 216,582 2,614 47,705 99,034 - 371,160

a) Provisions for long-term employee benefit obligations

The changes in 2011 of the items in these heading were as follows: (in EUR thousand):

Long-service bonus

Opening balance 2011 -

Additions for consolidations -

Additions for business combinations (Note 5) 5,035

Charges 207

Additions discount 142

Amounts used (159)

Closing balance 2011 5,225

Bonuses

“Bonuses” relates mainly to the provision recognised for long-service bonuses amounting to EUR 207 thousand in 2011 and of which EUR 142 thousand relate to the associated financing cost.

Other employee benefit obligations

Pursuant to the legislation relating to the externalization of pension commitments and to the agreement between Aena management and the labour union representatives to set up a pension plan, the defined-contribution pension plan for Aena’s employees was set up on 28 July 2003. This obligation is included in the heading “Staff” of trade credi-tors and other payables.

In 2011 the company made contributions to said pension fund in the amount of 3.3 million euros.

b) Expropriation and default interest

The expropriation and default interest provision includes the difference between the just compensation paid in the expropriation of land ac-quired during the airport expansions and the price estimations that would have to be paid, in the case that any claim on the just compen-sation paid, may be successful in court.

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2011 Annual report

Likewise, default interest on said just compensation differences were recorded, taking as the calculation base the legal interest rate current in each year.

c) Third-party liabilities

The heading relates to the estimated amount of 2.6 million euros re-quired for probable or certain third-party liabilities or obligations arising from litigation in progress or from outstanding indemnity payments or obligations. The Parent’s directors consider that the provision is suffi-cient to cover the risks of litigation in progress, third-party liability and current commitments known at the date of preparation of these finan-cial statements and do not consider that the current claims, taken as a whole, will give rise to additional liabilities that might have a material effect on the 2011 financial statements.

d) Taxes

This relates to local taxes with which the company is not in agree-ment with the settlement received from the tax authorities. These settlements were appealed and it was uncertain, on 31 Decem-ber 2011, what the definitive amount will be and when it will be settled.

e) Provision for environmental cost

At the closing of 2011, this heading included EUR 129.3 million to cov-er the costs foreseen to carry out sound insulation work required for meeting environmental legislation in force. Short-term provisions for contingencies and charges include a provision to cover these liabilities maturing in less than 12 months. The amounts associated with these

provisions are capitalized as an addition to the cost of the investment, since they are costs necessarily incurred to develop the projects.

f) Other provisions

This item includes the amount of certain subsidies granted to airlines operating in the Canary and Balearic Islands, Ceuta and Melilla airports. These subsidies were included in the 2010 and 2011 State Budgets as measures to foster air transportation in those regions.

20. Public Administrations and Tax Situation

Balances with Public administrations

The statement of credit and debit balances with the Public administra-tions is the following (in EUR thousand):

Taxes receivable Current Non-current

Deferred tax assets - 58,995

VAT receivable 101,988 -

Grants receivable 34,885 -

Total 136,873 58,995

The debit balance for grants provided is the result of non-refundable grants provided to the company by European FEDER funds that at the closing of 2011 had yet to be collected (in EUR thousand).

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2011 Annual report

Payable to Public Authorities Current Non-current

Deferred tax liabilities - 197,735

Personal income tax withholdings payable - -

Local taxes payable 52 -

Accrued social security taxes payable 5,110 -

Other taxes payable 8,511 -

VAT payable 9,923 -

Total 23,596 197,735

Reconciliation of the accounting profit and taxable profit

The reconciliation of the accounting profit for the year to the taxable profit for income tax pur-poses in 2011 is as follows (in EUR thousand):

Profit and loss account Income and expenses directly recognised in equity

Year profit and expenses balance (84,434)

Increase Decrease Total Increase Decrease Total

Income tax - - (40,497) - - -

Permanent differences 283 (14,081) (13,798) - - -


- arising in the current year 44,837 - 44,837 93,456 (12,896) 80,560

- arising in previous year - (54,097) (54,097) - (22,306) (22,306)

Offsetting tax loss carry forwards - -

Taxable profit (147,989) 58,254

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2011 Annual report

The main permanent differences in the current year are mainly due to non-deductible expenses. The main temporary differences arose as a result of the difference between the tax and accounting methods for recognising depreciation and amortization, the provision to the allow-ance for bad debts and payments for risk and staff expenses.

The income tax expense consists of (in EUR thousand):

2011

Current tax (44,396)

Deferred tax 2,778

Negative adjustment to tax 1,120

Total (40,498)

The amount of EUR 44,619 thousand corresponding to the negative tax base of Aena Aeropuertos, S.A. has been recognised as an account receivable with group companies, as the company belongs to the Aena consolidated tax group (public entity).

The current income tax is the result of applying a 30% tax rate to the tax base. The tax credits applied during 2011 amounted to EUR 222 thousand.

Deferred taxes

The detail of the deferred taxes on December 31, 2011 is the following (in EUR thousand):

Deferred tax assets:

- Temporary differences 58,995

58,995

Deferred tax liabilities:

- Temporary differences (197,735)

(197,735)

Deferred taxes (138,740)

Changes in the deferred tax assets and liabilities during the current year, without taking into account the balance offsetting, was the fol-lowing (in EUR thousand):

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2011 Annual report

Deferred tax assets AmortizationImpairment

lossesPension plans

Hedging deri-vative

Provisions update Other Total

Opening balance - - - - - - -

Additions for non-cash contributions 42,033 8,175 553 - - 741 51,502

Charge (credit) to income statement 1,527 (5,743) 57 10,282 950 420 7,493

Balance on 31 December 2011 43,560 2,432 610 10,282 950 1,161 58,995

Deferred tax liabilities Grants Total

Starting balance - -

Additions for non-cash contribu-tions

(204,929) (204,929)

Charge to equity 7,194 7,194

Balance on 31 December 2011 (197,735) (197,735)

Taxes recognised in equity

The taxes recognised in equity are assets hedging derivatives in the amount of EUR 1,282 thousand and grants liabilities in the amount of EUR 7,194 thousand.

years open for review and tax audits

Under current legislation, taxes cannot be deemed to have been defini-tively settled until the tax authorities have reviewed the tax returns filed or until the four-year statute-of-limitations period has expired. At the closing of 2011, the Parent company had an open period between May 31 and December 31, 2011 for all taxes.

The Parent’s directors consider that the tax returns for the aforemen-tioned taxes were filed correctly and, therefore, even in the event of discrepancies in the interpretation of current tax legislation in relation to the tax treatment afforded to certain transactions, such liabilities that could arise would not have a material effect on the accompanying finan-cial statements.

unrecognised deferred taxes assets

At the closing of 2011, the Parent company had not recognised the following tax credits in the consolidated balance sheet since there was no certainty that they could be used against future income tax returns within the period envisaged in current legislation (in EUR thousand):

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2011 Annual report

21. Income and expenses

a) Procurements

The breakdown of “Procurements” in 2011 is as follows (in EUR thou-sand):

Other procurements 169


Total (131,663)

The work performed by other companies corresponds mainly to serv-ices rendered by the Ministry of Defence, totalling over 8.42 billion euros, as well as communications, navigation and surveillance services (CNS), air traffic services (ATS), and aeronautical information services (AIS) provided by Aena (public entity), coming to over 121.8 billion euros.

b) Breakdown of the revenue

The revenue relating to the Group’s ordinary activities was obtained in Spain, the breakdown being as follows (in EUR thousand):

2011

Airport revenue:

Air traffic revenue:

Landing 347,445

Parking 15,815

2011

Use of infrastructures 386,656

Passenger boarding bridges 70,497

Cargo handling 6,043

Security charge 124,345

Other 197

Subtotal of air traffic revenue 950,998

Non-air traffic revenue:

In-flight catering services 6,487

Premises, land and desk rent 14,161

Check-in desks 15,538

Services provided to concession holders 13,159

Restricted area access clearance 357

Use of lounges and unspecified areas 7,055

Ramp handling 44,163

Other 3,484

Subtotal of non-air traffic revenue 104,404

Commercial revenue:

Fuel 17,705

Premises and land rent 44,326

Commercial operations 20,596

Stores 122,090

Bars and restaurants 52,100

Car rental 57,607

Vehicle parking 54,800

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2011 Annual report

2011

Advertising 16,917

Services provided to concession holders 11,134

Other (2,260)

Subtotal of commercial revenue 395,015

Income for services to Public Business Aena 8,514

Total Income 1,458,931

c) Employee benefit costs

The breakdown of “Employee Benefit Costs” for 2011 is as follows (in EUR thousand):

2011

Wages, salaries and similar expenses 160,679

Employer social security costs 46,909

Contributions to employee benefit obligations 3,223

Other employee benefit costs 9,758

Change in provision for employee benefit obligations 252

Total 220,821

d) Outside services

The breakdown of “Outside Services” is as follows (in EUR thousand):

2011

Rent and royalties 5,945

Repairs and upkeep 177,449

Independent professional services 24,138

Insurance Premiums 50

Transport 6

Banking services 865

Advertising and public relations 1,961

Utilities 62,565

Surveillance and security services 72,274

Public Entity expenses 29,227

Other expenses 76,759

Total 451,238

e) financial Loss

The financial loss for 2011 was as follows (in EUR thousand):

Income:

Income from equity investments 1,744

Other interest and similar income 192

Total financial profit 1,936

Costs:

Third party financial costs and similar (52,462)

Financial costs and similar with Aena (Public Entity) (188,775)

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2011 Annual report

Interest cost relating to provisions (3,572)

Capitalisation of finance costs (Notes 7 and 8) 20,469

Total financial loss (224,340)

Exchange differences 349

Change in fair value of financial instruments:

Losses from hedge instruments (12,869)

Net financial loss (234,924)

“Interest Cost Relating to Provisions” includes mainly the financial adjustments made by the Parent as a result of the interest cost on provisions. (Note 19) Also, under “Finance costs and similar with third-parties”, the Group recognised in 2011 an amount of EUR 51,982 thousand for expropriation interest charges, the associated provision for which is described in Note 19.

Excessive provisions

The most significant amount included under “Excessive Provisions”, of EUR 6,981 thousand, relates to the excessive tax provisions and the excess of provisions for other liabilities of EUR 2,222 thousand (see Note 19).

f) Other disclosures

The number of employees by category and gender on 31 December 2011 was as follows:

Professional Category2011 (*)

Men Women Total

Senior executives 9 2 11

Executives and college gradu-ates

941 585 1,526

Coordinators 1,005 334 1,339

Line personnel 3,461 1,653 5,114

Support staff 394 382 776

Total 5,810 2,956 8,766

(*) The number of temporary employees in 2011 was 1,536.

The average headcount by professional category was as follows

Professional Category 2011 (*)

Senior executives 11

Executives and college graduates

1,512

Coordinators 1,340

Line personnel 5,120

Support staff 787

Total 8,770

(*) The average number of temporary employees in 2011 was 1,597.

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2011 Annual report

The Group’s Board of Directors is composed of 10 men.

On 31 December 2011 the average number of employees with dis-abilities was 94.

Remuneration of Directors and Senior Executives

The breakdown of the remuneration received by the members of the Board of Directors and Senior Executives of the Group at the date of preparation of the annual statements herein is as follows (in EUR thou-sand):

Salaries AllowancesPension

plansInsurance premiums Total

Senior Executives 1,027 24 10 4 1,065

Board of Direc-tors - 59 - - 59

1,027 83 10 4 1,124

At 2011 year-end, no advances or loans were granted to the current or former members of the Board of Directors and there were no pension obligations to them.

Interests and positions held by members of the Board of Directors in analogous companiesThe information related to the interests and positions held by members of the Board of Directors in analogous companies is as follows:

Directors (*)

Company with

identical or analogous

activity

Position held

Interests Number of shares or %

Mr. Juan Ignacio Lema Devesa

Ms. Ana María Fuertes Eugenio - - -

Ms. Marisol Turro Homedes - - -

Ms. Maria Paz Espinosa Alejos

Mr. Antonio Bernabé García

Mr. Juan Enrique Gradolph Cadierno - - -

Mr. Raimundo Martínez Fraile - - -

Mr. Miguel Aguiló Alonso - - -

Mr. Jaime Terceiro Lomba

Mr. José Manuel Vargas Gómez - - -

Mr. Manuel Butler Halter

Mr. Antonio Carrascosa Morales - - -

Mr. Francisco Cal Pardo - - -

Mr. Pablo Vázquez Vega

Mr. Pedro Francisco Duque Duque

Mr. José Jaume Pons - - -

Mr. Jorge Andreu Arasa - - -

Mr. Juan Ignacio Acha-Orbea Echeverria - - -

Mr. Ginés de Rus Mendoza - - -

Mr. Juan Ignacio Acha-Orbea Echeverría

(*) Directors during 2011 and at the date of preparation of the annual statements herein.

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2011 Annual report

During 2011, no Director held any positions or functions, either personally or for another party, of any analogous or complementary activity included in its corporate purpose.

Fees paid to auditors

The fees billed by Pricewaterhouse Coopers during 2011 for the audit and other verification services amounted to EUR 78 thousand.

Additionally, the fees billed in connection with the audit of the finan-cial statements and other verification services of certain subsidiaries by other auditors totalled EUR 51.8 thousand.

22. Guarantees and other sureties granted

On 31 December 2011 Aena Aeropuertos, S.A. did not maintain any endorsement or guarantee granted to third parties. Its sole shareholder had some guarantees in force to cover the commitments generated in the airport business. The Directors of the company do not expect any liabilities to arise from these items.

23. Environmental Obligations

The Company’s management, in line with its commitment to pre-serve the environment and the quality of life in the areas in which it is present, has been making investments in this connection to minimise the environmental impact of its business activities and to protect and improve the environment.

On 31 December 2011, property, plant and equipment included invest-ments of an environmental nature amounting to 500,695 EUR thou-sand, the accumulated depreciation of which amounted to 139,465 EUR thousand.

The breakdown of environmental investments made in 2011 amount-ed to 18,728 EUR thousand (in EUR thousand):

2011

Málaga 2,844

Menorca 2,807

Madrid/Barajas 2,426

Barcelona 2,035

Girona 2,002

Alicante 1,265

Tenerife North 686

Palma de Mallorca 570

SSCC Aeropuertos Españoles 500

Bilbao 465

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2011 Annual report

2011

Melilla 357

Santiago 312

Gran Canaria 225

Ibiza 207

Pamplona 199

A Coruña 179

Córdoba 129

Seville 120

Other airports 1,400

Total 18,728

The breakdown of the environmental expenses included in the 2011 consolidated income statement is as follows (in EUR thousand):

2011

Repairs and upkeep 2,448

Independent professional services 1,565

Total 4,013

The provisions and contingencies of an environmental nature are de-tailed in Note 19. Aena Aeropuertos Directors do not expect any ad-ditional material liabilities or contingencies to arise in this regard.

Under the Barajas Plan and pursuant to the Resolutions of the Directo-rate-General of Environmental Information and Assessment dated 10 April 1996 and of the Secretariat General of the Environment, dated

30 November 2001, the company is carrying out the sound insulation of certain housing units near Madrid- Barajas airport. By 31 December 2011, more than 12,703 homes had been insulated.

As required under the Environmental Impact Statements relating to the projects to expand the Alicante and Málaga airports, Aena is carrying out the sound insulation plans associated with these statements. By 2011 year-end, 1,681 and 783 dwellings had been insulated in Ali-cante and Málaga, respectively.

Also, in 2007, applications for the sound insulation of housing units in the environs of the Gran Canaria, La Palma, Menorca, Palma de Mallorca, Tenerife North, Valencia, Bilbao, Ibiza, Pamplona, Barcelona, Sabadell, Santiago de Compostela, Vigo, La Coruña, Melilla and Ge-rona airports started to be processed and were still being processed at 2011 year-end.

Also, pursuant to the resolutions of the Ministry of the Environment, establishing the Environmental Impact Statements for the company’s airports, Aena carried out or is carrying out the preventive, corrective and compensatory measures indicated in the mandatory environmental impact study and in the aforementioned Environmental Impact State-ment, complying with certain conditions relating mainly to: protection of the hydrological and hydro-geological system, soil protection and conservation, protection of air quality, acoustic protection, protection of vegetation, wildlife and natural habitats, protection of the cultural heritage, restoration of services and livestock trails, location of quar-ries, spoil, landfill and ancillary facility areas.

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2011 Annual report

24. Segmented information

The Group identifies its operating segments on the basis of internal reports which form the basis for regular reviews, discussions and evaluation by the Board of Directors since it is the highest decision-making authority and has the power to allocate resources to segments and evaluate their performance. The following segments were identified: Airports, International Development and Airport Logistic Centers. The breakdown of the Company’s revenue by segments is as follows (in EUR thousand):

Segments

Item Airports International CLASA Other Total Group Dif.

Revenue 1,444,360 17,785 24,356 (27,570) 1,458,931 1,458,931 0

In-house work on non-current assets 3,689 - - 3,689 3,689 0

Procurements (131,663) - - (131,663) -131,663 0

Other operating income 5,748 238 1,308 (609) 6,685 6,685 0

Staff costs (217,855) (2,804) (2,373) 2,211 (220,821) (220,821) 0

Other operating costs (547,876) (3,228) (12,587) 10,663 (553,028) (553,028) 0

Depreciation and amortization charges (487,392) (654) (3,742) 1,788 (490,000) (490,000) 0

Allocation to profit or loss of grants related to non-financial non-current assets and other grants

22,035 - - (85) 21,950 21,950 0

Excess provisions 9,204 - - 9,204 9,204 0

Impairment and loss for non-current asset disposals (1,040) - - (1,040) -1,040 0

- 0

PROFIT (LOSS) FROM OPERATIONS 99,210 11,337 6,962 -13,602 103,907 103,907 0

Finance income 1,948 1,922 1 (1,935) 1,936 192 1,744

Finance costs (223,987) (1,143) (939) 1,729 (224,340) (224,340) 0

Change in fair value of financial instruments. (12,896) 56 - (29) (12,869) -12,869 0

Exchange differences - 103 - 246 349 349 0

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2011 Annual report

Segments

Item Airports International CLASA Other Total Group Dif.

Results of associates accounted for using the equity method

- 6,878 - (793) 6,085 6,085 0

PROFIT (LOSS) FROM NON-CONTINUING OPERA-TIONS

- - - - - - 0

PROFIT (LOSS) BEFORE TAX (135,725) 19,153 6,024 (14,384) (124,932) -126,676 1,744

Assets 16,933,827 137,989 95,851 (209,054) 16,958,613 16,958,613 0

Liabilities 13,988,466 54,941 51,221 (82,202) 14,012,426 14,012,426 0

Net cash flows from the following activities: #REF!

-Operating 653,548 7,064 7,946 (8,613) 659,945 0

-Investing (592,674) - 927 2,201 (589,546) (589,546)

-Financing (59,952) (5,363) (8,830) 6,412 (67,733) (67,733)

Non-current asset acquisitions 591,586 6 2,856 (893) 593,555


• On 25 January 2012 the Board of Directors agreed to waive the contracts related to lots I and II of the “Tender process to select partners to participate in the share capital of the public limited lia-bility companies in charge of the management of the airport service concessions for Madrid-Barajas and Barcelona-El Prat.”

• The Council of Ministers’ agreement dated 16 March 2012 ap-proved the plan to restructure and streamline the public sector

and state-founded companies, in order to dimension a smaller, more compact and efficient sector embedded in the current con-text of austerity and need to control public expenditure. Globally, the plan approved by the Government envisages the suppression, divestment or speeding up of the liquidation of a total of eighty trade companies, including Aena Desarrollo Internacional, S.A. and Centros Logísticos Aeroportuarios, S.A., whose sole proprietor is the subsidiary Aena Aeropuertos S.A. In this respect, the govern-ing bodies of the company shall carry out the decision through a merger by absorption by the company Aena Aeropuertos, S.A.

333

4Legal informationIndividual financial statements

2011 Annual report

ASSETS Note On 31 December 2011

NON-CURRENT ASSETS:

Intangible assets: 6 92,772




Intangible assets in the course 41,838

Property, plant and equipment: 7 16,119,765

Land and buildings 11,628,282

Technical facilities and machinery 560,427

Other facilities, tools and furniture 2,406,462

Other tangible assets 148,260

Property, plant and equipment in the course of construction and advances 1,376,334

Investments in group and associated long-term 199,014

Equity instruments 9.1.1 128,814

Individual financial statements

CONSOLIDATED BALANCE ON 31 DECEMBER (EuR THOuSAND)

AENA AEROPuERTOS, S.A. (SOLE SHAREHOLDER COMPANy)

334


2011 Annual report

ASSETS Note On 31 December 2011

Loans to companies 9.1 - 9.1.2 70,200

Long-term financial investments 9.1 214

Equity instruments 180

Other financial assets 34

Deferred tax assets 13.3 58,937

TOTAL NON-CURRENT ASSETS 16,470,702

CURRENT ASSETS

Inventories 10 5,198

Trade and other receivables 9.1 - 9.1.3 406,674

For sales and services 238,228

Customers, group companies and associates 9.1.2 22,613

Sundry Debtors 7,548

Staff 1,429

Current tax assets 13.1 136,856

Investments in group companies and associated short-term 9.1 - 9.1.2 45,921

Loans to companies 45,921

Current financial assets 9.1 - 9.1.2 - 9.1.4 4,403

Loans to companies 472

Other financial assets 3,931

Short-term accruals 7

Cash and other cash assets equivalents 922

TOTAL CURRENT ASSETS 463,125

TOTAL ASSETS 16,933,827

Notes 1-17 described in the attached Report are an integral part of the Annual Statements hereby.

335


2011 Annual report

LIABILITIES AND NET EQUITY Note On 31 December 2011

NET EQUITY

Own funds 11 2,506,974

Equity 1,500,000

Issuance premium 11-b 1,100,868

Year loss 11-c (93,894)

Value adjustments (23,852)

Hedging (23,852)

Grants, donations and bequests 11-d 462,239

TOTAL NET EQUITY 2,945,361

NON-CURRENT LIABILITIES

Long-term provisions 12 371,160

Long-term employee benefit obligation provisions 5,225

Environmental actions 99,034

Other provisions 9.1.2 266,901

Long-term debts with group companies and associates 9.1 - 9.1.2 - 9.2.1 11,144,645

Deferred tax liabilities 13.3 204,426

TOTAL NON-CURRENT LIABILITIES 11,720,231

CURRENT LIABILITIES

Short-term provisions 12 207,081

Short-term debts 9.1.2 - 9.2.1 623,862


Short-term debts with group companies and associates. 9.1 - 9.2.1 1,079,327

Trade and other payables 357,965

BALANCE ON 31 DECEMBER 2011 (EuR THOuSAND)

336


2011 Annual report

LIABILITIES AND NET EQUITY Note On 31 December 2011

Payable to suppliers 103

Payable to suppliers, group companies and associates 9.1.2 87,517

Sundries 190,914

Staff 18,589

Other debts with Public Administration 13.1 23,433

Customer advances 37,409

TOTAL CURRENT LIABILITIES 2,268,235

TOTAL NET EQUITY AND LIABILITIES 16,933,827


337


2011 Annual report

Note 2011


Net business volume 14 1,444,360

In-house work on non-current assets 7 3,689

Procurements 14 (131,663)

Cost of raw materials and other consumables used 170


Other operating income 5,748

Non-core and other current operating income 5,229

Income-related grants transferred to profit 519

Staff costs 14 (217,855)

Wages, salaries and similar expenses (158,427)

Social security costs (59,228)

Provisions (200)


Outside services 14 (447,299)

Taxes (66,361)

Loss, damage and changes in trade provisions (5,879)


Depreciation and amortization 6 and 7 (487,392)

Allocation of grants and other non-financial assets 9.1.2 22,035

INCOME STATEMENT BETWEEN 31 MAy 2011 AND 31 DECEMBER 2011 (EuR THOuSAND)

338


2011 Annual report

Note 2011

Excess provisions 7 9,204

Impairment and loss on disposal of non-current assets (1,040)

Impairment and losses

Loss on disposal of non-current assets (5,027)

Other results 3,987

OPERATING INCOME 99,210

Finance income 14 1,948

Participation in equity instruments

- Group companies and associates 9.1.2 735

From marketable securities and other financial instruments

- Group companies and associates 1,174

- Third parties 39

Financial costs (223,987)

- On debts to group companies and associates. 14 (188,773)

- On debts to third parties (52,111)

- Interest cost relating to provisions (3,572)

- Capitalisation of finance cost 20,469

Change in fair value 9.1.2 - 14 (12,896)

FINANCIAL RESULT 14 (234,935)

LOSS BEFORE TAXES (135,725)

Income tax 13.2 41,831

LOSS FROM CONTINUING OPERATIONS (93,894)

LOSS OF THE YEAR (93,894)

Notes 1-17 described in the attached Report are an integral part of the Annual Statements on December 31, 2011.

339


2011 Annual report

Note 2011

Results of the profit and loss account (93,894)


From cash flow hedges (46,971)

Grants, donations and bequests received -

Actuarial gains and losses and other adjustments -

Tax effect 14,092

Total income and expense recognised directly in equity (32,879)

Transfers to profit and loss

From cash flow hedges 12,896

Grants, donations and bequests received (22,755)

Tax effect 2,958

Total transfers to profit and loss 11-d (6,901)

TOTAL RECOGNISED INCOME AND EXPENSES (133,674)

STATEMENTS Of CHANGES IN EQuITy fOR 2011 (EuR THOuSAND) A) STATEMENT Of RECOGNISED INCOME AND ExPENSE (THOuSAND Of EuROS)

340


2011 Annual report

Assigned Equity and Asset

Issue premium Year lossValuation

Adjustment

Grants, Dona-tions, or Gifts and Bequests received

TOTAL

Balance on 31 May 2011 61 - - - - 61

Total recognised income and expense - - (93,894) (23,852) (15,928) (133,674)

Transactions with partners or shareholders -

Increase of Reserves due the valuation of con-solidated shares subject to non-cash contribu-tion (Note 3)

1,499,939 1,100,868 - - 478,167 3,078,974

Balance on 31 December 2011 1,500,000 1,100,868 (93,894) (23,852) 462,239 2,945,361


STATEMENTS Of CHANGES IN EQuITy fOR yEAR 2011B) STATEMENT Of CHANGES IN TOTAL EQuITy (EuR THOuSAND)

341


2011 Annual report

Note 2011

CASH FLOW FROM OPERATING ACTIVITIES (I) 653,548


Adjustments for: 689,098

Depreciation and amortization 6 - 7 487,392

Impairment losses 5,879

Change in provisions 11-d (22,035)

Allocation of grants 5,027

Financial incomes (22,417)

Financial costs 240,884

Change in fair value of financial instruments 3,572

Excess provisions (9,204)

Changes in working capital 320,615

Inventories (165)

Trade and other receivables 18,424

Other current assets 4,341

Trade and other payables (82,711)

Other current liabilities 632,582

Other current assets and liabilities (251,856)

Other cash flow from operating activities (220,440)

Interest payments (226,301)

Dividend received 4,761

Interest received 1,100

CASH fLOW STATEMENT 2011(EuR THOuSAND)

342


2011 Annual report

Note 2011

CASH FLOW FROM INVESTING ACTIVITIES (II) (592,674)

Payments due to investments (593,665)

Intangible assets 6 (23,926)

Property, plant and equipment assets 7 (567,538)

Other financial assets (122)

Group companies and associates (2,079)

Proceeds from disposal 991

Cash-flow from non-cash contribution 3 991

CASH FLOW FROM FINANCING ACTIVITIES (III) (59,952)

Charges and payments due to equity instruments 61

Issuance of equity instruments 61

Charges and payments for financial liabilities (60,013)

Issuance:

- Debts with group companies and associates 125,000

Repayment and amortisation:

- Debts with group companies and associates (185,013)

EFFECT OF EXCHANGE RATE CHANGE -

INCREASE / DECREASE IN CASH AND CASH EQUIVALENTS 922

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR -

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 922


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