Annual report 2016
Outstanding results Customer and employee scores improved, operating profits of â‚Ź9.4 million
Growth of international titles Amsterdam events performing well. Start of Aquatech and Intertraffic (Mexico), stake in IBEX (US)
Recovery of national events Horecava, Woonbeurs and other events on the up
Opening of multifunctional parking building Strandzuid almost complete, construction of nhow RAI Amsterdam hotel started
Management expansion and renewal Plus changes to the executive structure
More and better innovation Enhanced focus on the longer term
Cover photo: impression of ISE (Integrated Systems Europe).
Disclaimer: Whenever this annual report mentions ‘RAI Amsterdam’, ‘we’, ‘the company’ or similar indications, it refers to RAI Holding B.V. as explained in the ’Corporate governance’ section. Segments of this annual report contain opinions regarding the future. These segments can – without limitations – contain expectations on future realised and unrealised results, profits, payments, government measures, the impact of other regulating measures on the activities of RAI Amsterdam, subsidiaries and macroeconomic trends and the performance of RAI Amsterdam. Such statements are preceded or followed by or include terms such as ‘believe’, ‘expect’, ‘prognosticate’, ‘feel’, ‘anticipate’ or similar. These future-oriented statements are based on current assumptions of future activities and are subject to known and unknown factors and other uncertainties, many of which are outside RAI Amsterdam’s sphere of influence. This means that future results can, in fact, differ substantively from these expectations.
In view of Title 9, Book 2 of the Netherlands Civil Code, the information given in the sections ‘In brief' 'Governance and risk management' and 'Annexes' is also part of the section ‘Report by the management’. For reasons of presentation, this information is not repeated in this section.
Contents . . . . . 1. In brief
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. 4.
.
.
.
.
.
. . . Profile
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. 5.
.
.
.
.
.
. . . . . Key figures
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.10.
.
.
.
.
.
. . . . . . . . . . Foreword from the Board
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.12.
.
.
.
.
.
. . . . . . . . . . . . . . . . . . Composition of Supervisory and Executive Board
.
.
.
.
.
.
.
.
.
.
.
.
.
.16.
.
.
.
.
.
. . . . . . . . . . The power of connections
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.18.
.
.
.
.
.
. . . . . . . . . . . From organising to facilitating
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.19.
.
.
.
.
.
. . . . . . . . . . . . . . . . 2. Statement from the Supervisory Board
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. 20.
.
.
.
.
.
. . . . . . . . . To the general meeting
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.21.
.
.
.
.
.
. . . . . . . . . . . 3. Executive Board report
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. 32.
.
.
.
.
.
. . . . . . . . . . Results in reporting year
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.33.
.
.
.
.
.
. . . . Events
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.37.
.
.
.
.
.
. . . . Services
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.49.
.
.
.
.
.
. . . . Facilities
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.54.
.
.
.
.
.
. . . . Strategy
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.59.
.
.
.
.
.
. . . . . . . . . . . Personnel and organisation
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.62.
.
.
.
.
.
. . . . . . . . . . . . . . Shareholder equity and loan capital
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.70.
.
.
.
.
.
. . . . . Prospects
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.75.
.
.
.
.
.
. . . . . . . . . . . . . . . 4. Governance and risk management
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. 80.
.
.
.
.
.
. . . . . . . . . Corporate governance
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.81.
.
.
.
.
.
. . . . . . . . Risk management
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.86.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. 92.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.93.
.
.
.
.
.
. . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1. Consolidated balance sheet (before proposed appropriation of results)
.
.
.
.
.98.
.
.
.
.
.
. . . . . . . . . . . . . . . 2.1. Consolidated profit and loss account
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.99.
.
.
.
.
.
. . . . . . . . . . . . . . 3.1. Consolidated cash flow statement
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. 100 . .
.
.
.
.
.
. . . . . . . . . . . . . . . . . . . . . . . . Notes on the consolidated balance sheet as on 31 December 2016
.
.
.
.
.
.
. 101 . .
.
.
.
.
.
. . . . . . . . . . . . . . . . . . . . . Notes on the consolidated profit and loss accounts 2016
. . . . . . . . . 5. Financial statement . . . . General
.
.
.
.
.
.
.
.
.
.
.
.
.
. 107 . .
.
.
.
.
.
. . . . . . . . . . . . . . . . . . . . . . 4.1. Company balance sheet (before appropriation of results)
.
.
.
.
.
.
.
.
. 110 . .
.
.
.
.
.
. . . . . . . . . . . . . . 5.1. Company profit and loss account
.
.
.
.
.
.
.
.
. 111 . .
.
.
.
.
.
. . . . . . . . . . . . . . . . . . . . . . . Notes on the company balance sheet as on 31 December 2016
.
.
.
.
.
.
.
. 112 . .
.
.
.
.
.
. . . . . . . . . . . . Proposed appropriation of profit
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. 115 . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. 116 . .
.
.
.
.
.
. . . . . . . . . . . . . . . . . . . . . . . Appropriation of result in accordance with the company statutes
.
.
.
.
.
.
.
. 117 . .
.
.
.
.
.
. . . . . . . . . . . . . . . . . . Audit statement by the independent accountant
. . . . . . . . . 6. Other information
. . . . . . 7. Colophon
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. 118 . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. 122 . .
.
.
.
.
.
#01
In brief
4
Profile RAI Amsterdam is an international exhibition and convention organisation. Our specialism is bringing people together to connect and inspire each other. With this in mind we focus on facilitating and organising meaningful encounters.
Our Convention Centre in Amsterdam welcomes some 1.5 million visitors a year to consumer & trade exhibitions, conferences, shows and other events. This includes events organised by third parties in our convention centre as well as events which RAI Amsterdam itself owns and organises. The sectors and high value communities served by our own exhibitions also benefit from similar trade shows that we organise abroad.
Mission and strategy Our mission: 'Inspiring people' RAI Amsterdam creates the conditions for inspiring encounters
All RAI Amsterdam’s activities ultimately revolve around our guiding principle of inspiring people. We believe in the power of connection and aim to create the best possible conditions for inspiring encounters. Whether it revolves around physical meetings such as an exhibition for the general public, a large conference, an international trade show, a dance event or a theatre performance, or a meeting in the virtual world, this essence of inspiring people remains central to everything we do.
Strategy: 'enhancing the value of encounters’ maximum added value
RAI Amsterdam provides added value for its visitors by bringing them together in an inspiring environment. In doing so, we contribute to successful business, memorable events, pleasant evenings or any other goal that connects our guests.
excellent reputation via national events
National consumer and other exhibitions are the bedrock on which RAI Amsterdam’s reputation is built and represent the foundation of our success. Although national events are under substantial pressure in a general sense, RAI Amsterdam considers it important to retain our position and outstanding name recognition in the Netherlands, building on them wherever possible
future growth through international events
Internationally oriented events in high value sectors will be the engine of our future growth and RAI Amsterdam offers organisers and visitors a unique proposition. Thanks to its image of safety, openness & tolerance, the allure of its architecture & atmosphere, and its extraordinary accessibility via Schiphol, Amsterdam is an exhibition and conference destination par excellence. The central location of the RAI Amsterdam Convention Centre within the city and our outstanding reputation in the field of hospitality ensure that visitors have a pleasant and productive stay.
meeting the needs of visitors
RAI Amsterdam’s aim – bringing people together and inspiring them – has remained the same since the first exhibition, which was held over 120 years ago. The manner in which RAI Amsterdam achieves this in the 21st century is fine-tuned to the requirements of the visitors of today and tomorrow.
5
Convention Centre circa 500 events
The RAI Amsterdam Convention Centre is an innovative, sustainable and cost-efficient complex which accommodates around 500 events and 1.5 million visitors every year.
Making hospitality a priority years of experience in
Whether it involves a meeting of five people, 50,000 conference delegates or 250,000 exhibition
meeting the most diverse
visitors, RAI employees are proud to contribute their experience and expertise, providing a wide
requirements
range of services and products which ensure a hospitable welcome. It is thanks to the professionalism of our employees that all the requirements of our clients are met to their complete satisfaction.
Multifunctional building complex the dynamics of combi- letting:
The strength of the convention centre lies in its multifunctional character, which allows the RAI to
fast and flexible switching
switch quickly and flexibly between the widest possible range of uses. This is one of the reasons
between events
why the weighted average effective occupancy rate of the RAI Amsterdam Convention Centre is one of the highest in Europe.
easy-to-reach location
The Convention Centre is situated on the edge of Amsterdam’s city centre and has its own train and metro station. A second metro station, connected to the North/South metro line, is expected to open in 2018. Visitors can travel from the Convention Centre to the main hall at Schiphol Airport or the historic centre of Amsterdam in around ten minutes.
Organising and running our own exhibition titles 25 national and international consumer and trade events
Around half of the turnover of RAI Amsterdam is related to our own events, developed and organised in-house. RAI Amsterdam organises around 25 consumer and trade events, both Dutch and international. While these events largely take place in Amsterdam, some are held elsewhere in the Netherlands and abroad.
Strong international position world leader in five sectors
With a clear focus on first-class, internationally oriented events and on collating knowledge of markets and target groups, RAI Amsterdam has exhibition titles in five sectors in which it is a global market leader. These sectors (and exhibition titles, respectively) are: professional cleaning (ISSA/INTERCLEAN), remanufacturing (ReMaTec), traffic technology (Intertraffic), the maritime sector (METSTRADE and IBEX) and water technology (Aquatech).
The growth in lettings for various international and periodical exhibitions and conferences organised by third parties also contributes to our strong international position.
Physical and virtual meetings 'year round' contact with communities
In addition to physical meetings at events, RAI Amsterdam also facilitates virtual encounters. This enhances the reach of exhibitions and congresses and allows the continuation of contacts between target groups and communities beyond an event.
6
Importance for city and society RAI Amsterdam stimulates city
RAI Amsterdam stimulates the economy in the city and region. Hotels, restaurants, museums,
and region
transport companies, suppliers and the airport benefit from the large number of exhibitors and
visitors who visit the city due to the (many international) exhibitions, conferences and events. Business visitors who stay a few days also represent a boon for the city and the surrounding area. The fact that they spend the day at an exhibition or conference means that our city stays balanced, while their stay contributes to the local economy. The economic value of RAI Amsterdam to the Amsterdam metropolitan region was reassessed in late 2014, showing a further increase over previous years. RAI Amsterdam was found to generate a total turnover in the Amsterdam region of over 600 million euros as well as 7,000 jobs on a full time basis.
leader in Corporate Social
Corporate Social Responsibility (CSR) is an integral part of the policy of RAI Amsterdam. Our CSR
Responsibility
approach has received international recognition with the most prestigious sustainability certificates. The progress made in the various CSR policy areas is reported in a separate annual Sustainability Report. RAI Amsterdam aims to contribute to Amsterdam’s prosperity. The events obviously bring revenue into the city, however RAI Amsterdam would like to be involved in other ways as well: by attracting local suppliers and offering opportunities to local residents with a disadvantage on the labour market; by limiting the impact of large events on daily life in the city wherever possible; and by having an active dialogue with all our stakeholders. In all these ways, we aim to ensure that RAI Amsterdam continues to provide a valuable contribution to society, year in and year out.
Shareholders two shareholders
RAI Amsterdam has two shareholders: the RAI Association and the City of Amsterdam.
RAI Association: 75%
The RAI Association – the trade association for manufacturers, importers and wholesalers of mobility-related products such as cars, trucks, bicycles and trailers – owns 75% of the shares in RAI Amsterdam. The association, which has around 500 members, has been involved with RAI Amsterdam ever since the bicycle industry started organising an annual trade exhibition in the city in 1893. The name RAI, an abbreviation (in Dutch) for ‘bicycle and automotive industry’, came a few years later when the automotive sector joined.
City of Amsterdam: 25%
The remaining 25% of shares are owned by the City of Amsterdam, an arrangement that dates back to 1956 and has an economic background. The City of Amsterdam decided in 2016 to start the process of selling the municipal interest.
7
Personnel 400 employees and around 3,000 flexible workers
RAI Amsterdam employs around 400 people (371 FTEs). Approximately half of these have a commercial position, around a third have an operational role and some 10% are in management. Temp workers are also deployed for specific events. There is a fixed pool of around 300 regular flexible workers and RAI Amsterdam employs some 3,000 temps a year.
8
9
Key figures Events and visitors: including MECC Maastricht up to 2012.
Visitors Numbers x 1,000
2016
2015
2014
2013
2012
International events
372
330
471
451
392
National events
734
1,048
672
652
764
37
40
62
80
125
Stage shows Other events Total in Amsterdam
281
327
313
198
152
1,425
1,745
1,518
1,381
1,433
50
‑
7
0
‑
Outside of the Netherlands
96
83
64
67
62
Total outside of Amsterdam
96
90
65
67
111
Elsewhere in the Netherlands
1,520
1,835
1,582
1,448
1,544
2016
2015
2014
2013
2012
18,464
15,816
18,649
15,389
16,364
63%
60%
63%
55%
52%
2016
2015
2014
2013
2012
Total
Exhibitors Number
Exhibitors Exhibitors from outside the Netherlands
Organisers Number
External organisers RAI Amsterdam Total
458
434
521
464
616
19
24
23
23
23
477
458
544
487
639
2016
2015
2014
2013
2012
Events Number
International events
52
41
54
47
48
National events
34
43
43
45
59
Stage shows
35
39
55
85
119
Other events
350
325
383
300
403
Total in Amsterdam
471
448
535
477
629
Elsewhere in the Netherlands
‑
1
1
‑
4
Outside of the Netherlands
6
9
8
10
6
Total outside of Amsterdam
6
10
9
10
10
477
458
544
487
639
Total
10
Approval ratings Satisfaction rating with RAI Convention Centre (from 1 to 10)
2016
2015
2014
2013
2012
Organisers (events for external organisers)
8.2
7.7
7.8
7.6
7.4
Exhibitors (own events)
7.8
7.5
7.6
7.4
7.3
Visitors (own events)
7.8
7.3
7.6
7.2
7.2
2016
2015
2014
2013
2012
Turnover and results x €1 million
Exhibitions and events
50.2
56.9
47.5
39.4
52.5
Letting to third parties
19.8
18.1
22.3
23.6
23.2
-
-
-
-
3.2
Catering
14.5
15.5
15.1
17.8
16.9
Parking
5.0
5.9
4.5
4.3
5.4
Hotel commission
2.6
3.3
3.4
3.5
3.1
26.1
24.3
24.8
20.8
22.3
Trade journal publications
Facility services Other
2.0
2.1
2.1
7.2
8.1
120.2
126.2
119.7
116.6
134.7
Outsourced work
47.1
58.6
45.4
46.0
57.3
Wages and salaries, incl. social security and
29.0
27.8
29.2
29.1
31.5
15.0
13.8
14.3
15.3
15.8
Turnover
pension contributions Amortisation Other operating expenses
19.7
17.0
17.2
19.1
24.1
110.8
117.2
106.1
109.5
128.7
24.4
22.7
28.0
22.4
21.8
Operating result
9.4
8.9
13.7
7.1
6.0
As % of turnover
7.9%
7.1%
11.4%
6.1%
4.5%
Operating expenses EBITDA
5.0
4.2
9.3
3.3
2.1
2016
2015
2014
2013
2012
Net result
Balance sheet x €1 million
Shareholder equity
87.9
86.7
84.7
77.7
76.4
205.8
201.8
198.0
189.9
196.2
42.7%
43.0%
42.8%
40.9%
38.9%
2016
2015
2014
2013
2012
371
375
384
390
379
100%
100%
100%
100%
100%
8.2
‑
7.9
‑
7.7
Balance total Solvency
Personnel Employed by group, average
Employees, FTE In the Netherlands Employee satisfaction (biennial)
11
Foreword from the Board
Paul Riemens (left) and Maurits van der Sluis
all commercial goals realised
The year 2016 was a good one for RAI Amsterdam. All predetermined commercial goals were realised, and we saw good results for our quality indicators: organisers gave our convention centre an average score of 8.2 (2015: 7.7); visitors rated our own exhibitions with a 7.8 (2015: 7.3); and exhibitors gave our exhibitions in 2016 a 7.8 (2015: 7.5). Employee satisfaction, which is measured every two years, reached a new highpoint in late 2016 with a score of 8.2 (2014: 7.9). The bottomline operational results were â‚Ź9.4 million (2015: â‚Ź8.9 million).
100 millionth visitor
RAI Amsterdam reached a significant milestone in its history on 7 April 2016 during the RAIorganised trade exhibition Intertraffic Amsterdam when we welcomed our 100 millionth visitor since the opening of the Europa complex in 1961.
Events International focus on international events: a good choice
In 2016 the RAI hosted a total of 52 international events. It is clear that RAI Amsterdam made a wise choice to focus on the growth of high-quality internationally-oriented events over recent years, allowing us to strengthen our portfolio in terms of both third-party events and RAI-organised events.
12
By focusing on international sectors and target groups, RAI Amsterdam was able to make up for the falling turnover of Dutch national events over the past years. This has helped us realise positive results year after year, even during the financial crisis.
city in balance
International business visitors making short, multi-day stays also benefit the city and region. Their day-time visits to exhibitions and conferences keep our city in balance while simultaneously making a significant contribution to the local economy.
international events by third parties
The majority of the international events in the RAI, a total of 45 in 2016, are organised by third parties. This included the periodically returning editions of ISE (Integrated Systems Events; audiovisual market), IBC (International Broadcasting Convention; digital media, television and radio) and PLMAs World of Private Label International Trade Show (manufacturers and retailers of private label products). New events in 2016 included FESPA Digital (large-scale digital printing) and ECCMID (physicians and scientists in clinical microbiology).
own international events in the Netherlands and abroad
Our own international titles METSTRADE, ISSA/INTERCLEAN, Intertraffic and Greentech took place in Amsterdam as well. RAI Amsterdam also organised the first edition of Aquatech and Intertraffic in Mexico. These premiers enjoyed a great start as spin-offs of proven RAI exhibitions.
National national events by third parties
The reporting year saw 34 national events. Organised by third parties, they included PAN Amsterdam, Jumping Amsterdam, Masters of LXRY, Provada, Modefabriek, the Nationale Carrièrebeurs and Building Holland.
own national events
RAI Amsterdam organised the Huishoudbeurs/Negenmaandenbeurs, Horecava and HISWA Amsterdam Boat Show.
no continuity for BedrijfsautoRAI, introduction of MobiliteitsRAI
Unfortunately, RAI Amsterdam and the RAI Association had to decide to discontinue BedrijfsautoRAI 2017. Despite a successful edition in 2015 a number of exhibitors indicated they would not participate in the 2017 event, meaning there was no solid foundation for a new BedrijfsautoRAI. In cooperation with the RAI Association, RAI Amsterdam then introduced the MobiliteitsRAI, an entirely new business platform for all professionals in the mobility sector. Linking a three-day exhibition to a full conference programme creates a single time and place to focus on the mobility of the future. The MobiliteitsRAI will take place in October 2017 and be organised every two years.
challenge
From the moment it became clear that the AutoRAI and BedrijfsautoRAI would be removed from the event schedule, RAI Amsterdam started actively searching for alternative events for the cleared periods. Several good events have already been booked for the former AutoRAI period, but it will continue to be a challenge for RAI Amsterdam to emulate the added value of an event such as the AutoRAI, and, more generally, (re)develop national exhibitions.
13
Broad range the broadest range of events
In addition to the international and national exhibitions and conferences giving the RAI a good name, the venue also hosted a broad range of other events. From dance parties to church services, from food truck festivals to annual dinners... RAI Amsterdam continued to be open to all in 2016.
“RAI Amsterdam is open to all” Real estate developments proceeding according to plan
Multifunctional parking garage example of building flexibility and adaptability
RAI Amsterdam’s new parking garage was taken into use in August 2016. The multifunctional building has nine storeys for parking and can accommodate around 1,000 vehicles. This building is a fine example of how we aim to continue developing the RAI Amsterdam Convention Centre in terms of flexibility and adaptability.
Hotel nhow Amsterdam RAI construction underway
The Amsterdam skyline will change permanently in mid-2019 with the completion of the iconic nhow Amsterdam RAI hotel. With 650 rooms and a height of 91 metres, nhow Amsterdam RAI will be the largest hotel in the Benelux region. Construction of the hotel officially began on 26 October 2016.
City of Amsterdam’s equity interest municipality starts selling partial interest under strict conditions
In 2016, the City of Amsterdam, which owns a 25% share in RAI Amsterdam, decided to start selling the municipal interest to a third party. It is doing so under certain strict conditions, including safeguarding the continuity of the RAI. Another condition involves the cooperation between the City of Amsterdam and RAI Amsterdam on issues such as the acquisition of international conferences, accessibility and event organisation. RAI Amsterdam makes an important contribution to the city and region, and it is in the public interest to safeguard this contribution during and after the selling process.
Changes to Supervisory Board departure of Mr Houterman and Mrs Rijxman, welcome to Ms NAAM
We thank Supervisory Board members Ferry Houterman and Shula Rijxman for their contribution to and involvement in our company. Both members left the organisation in 2016. Mr Houterman had been connected to RAI Amsterdam for 12 years.
14
New Executive Board acknowledgement for Hans Bakker
2016 was a year of transition from an organisational standpoint too. The Executive Board changed hands in spring, when Hans Bakker, CEO since 2002, left the company, and the statutory board was expanded to comprise two persons. We want to thank Hans for all he did for RAI Amsterdam and are privileged that we have the opportunity to continue his work.
innovation: accelerate and strengthen
As the new Executive Board, we used the second half of the reporting year to broaden our horizons. While upholding the current strategy, we also wish to accelerate and strengthen our innovative prowess. To do so, a new top structure was established in autumn, abandoning the traditional division between organising and facilitating departments (RAI Exhibitions and RAI Convention Centre, respectively).
Joining forces looking forward to the future
We want to thank our stakeholders: our visitors, exhibitors and organisers, as well as our shareholders, the Supervisory Board, employees and Amsterdam residents for their close involvement in RAI Amsterdam. We look forward to the future and invite everyone to help us shape it.
Amsterdam, 16 March 2017
RAI Holding B.V.
Paul Riemens, CEO Maurits van der Sluis, COO
15
Composition of Supervisory and Executive Board Supervisory Board The Supervisory Board formatively consists of five members. Two positions are currently unfilled, of which one involves a member to be proposed by the City of Amsterdam.
R.H. (Roelf) de Boer (1949), chair. Also chair of the Selection and Appointment Committee appointed 23 April 2015, first
Dutch national. Additional functions: chair Supervisory Board of
term of office until 23 April
Zeeland Seaports, chair Supervisory Board of De Beijer BV, chair
2019. Chair since 24 April
Dutch delegation International Council for Game and Wildlife
2015
Conservation (CIC).
J.W.Th. (John) van der Steen (1954), vice-chair and chair of the Audit Committee appointed 7 April 2011,
Dutch national. Other commissionerships: chair Supervisory
second term of office until 7
Board of BinckBank N.V., chair Supervisory Board of Princess
April 2019, vice chair since
Sportsgear & Traveller BV. Additional functions: Board member
2014
Stadhold Insurances S.A., director/owner Ansteen Holding B.V. and Board member foundation Donateurs van het Koninklijk Concertgebouworkest.
Mrs A.M.H. (Annemarie) van Gaal (1962), chair Remuneration Committee, member of the Audit Committee appointed 15 September 2015, first term until 15 September 2019
Dutch national. Moderator and speaker, columnist for De Telegraaf. Other commissionerships: member Supervisory Board of PathĂŠ, member Supervisory Board of Value8. Additional functions: Board member Start Foundation, member committee of recommendation for the foundation Het Vergeten Kind.
Stepped down in 2016 F.I.M. (Ferry) Houterman (1949) appointed 1 September 2004, resigned on 31 December 2016
Dutch national. Member of the Supervisory Board with enhanced right of recommendation from the works council. Independent management consultant. Other commissionerships: member Supervisory Board of Rabobank Amsterdam, member Supervisory Board of Hampshire Hotel Group, member Supervisory Board of Tahal (Kardan Group). Additional social functions: member Supervisory Board of BNN-VARA Omroep (until 1 June 2016), member Supervisory Board of CNV Connectief (education, health care, government), member Supervisory Board of Waarborgfonds Kinderopvang / Ruimte Onderwijs (until 1 May 2016), member Supervisory Board of Jongeren Cultuurfonds, member Supervisory Board of Metropole Orkest, member Supervisory Board of ROC Leiden, Board member Vrienden Stadsarchief Amsterdam, Board member PC Uitvaart (from 1 July 2016).
16
Mrs S.J. (Shulamith) Rijxman (1959) appointed 12 April 2012, in
Dutch nationality Member of the Supervisory Board. Functions and additional functions when
first term of office until April
Supervisory Board membership at RAI Amsterdam was terminated: Function: Board member of the
2016, declined second term
Nederlandse Publieke Omroep (NPO). Additional functions as NPO Board member: Board member of Coproductiefonds Binnenlandse Omroep (CoBO) and Board member of STER. Additional social functions: chair of Amsterdam Marketing, member of Advisory council of Mijksenaar, member of the Supervisory Board of Dutch National Opera & Ballet.
Executive Board As of 7 April 2016 the executive board is made up of two people (previously one).
P. (Paul) Riemens, CEO from 7 April 2016 appointed on 7 April 2016, in first term until April 2020
Dutch national. Focal areas: Finance, HR, ICT, Legal, Hospitality and Venue. Function until 1 May 2016: CEO of Luchtverkeersleiding Nederland. Additional functions: member of the Supervisory Board of Twynstra Gudde, chair Supervisory Board of St. Jansdal Ziekenhuis, chair Jumping Amsterdam, chair of the advisory council of DDA, member advisory council foundation Hoogvliegers.
M. (Maurits) van der Sluis, COO from 7 April 2016 appointed on 7 April 2016, in first term until April 2020
Dutch national. Focal areas: Marketing & Digital, Commercial, Clients and Operations. Function until 1 May 2016: Director RAI Amsterdam Convention Centre. Additional functions: chair The Leading Centers of Europe, treasurer foundation Voorfinanciering- en Garantie Fonds, Board member Nederlandse Ski Vereniging, Board member EMECA (European Major Exhibition Centre Association)
Stepped down in 2016 A.J. (Hans) Bakker (1951), CEO until 7 April 2016 appointed in 2002, resigned
Dutch national. Functions and additional functions when Board
from function 1 May 2016,
function at RAI Amsterdam was terminated: Commissionerships:
function ended on 1 August
chair of the Supervisory Board of Transavia Airlines B.V., chair of
2016
the Supervisory Board of GVB Holding N.V., chair of the Supervisory Board of SnowWorld N.V. Additional social functions: chair of the Supervisory Board of Holland Marketing (NBTC), chair of the Board of foundation Jumping Amsterdam, member of the appeals committee of the foundation Garantiefonds Reisgelden (until 1 January 2016) and the foundation Calamiteitenfonds Reizen (until 1 January 2016), Board member of the foundation Amsterdam Museum Fonds, Supervisory Board member of the foundation Hulphond, member of the advisory council for the Faculty of Economy and Business of the University of Amsterdam (UvA). Other additional functions: counselling advisor of MIRUS B.V., director/owner of VIMARO Management B.V.
17
AMSTERDAM
NORTH
AMSTERDAM
CENTRE
AMSTERDAM
WEST
AMSTERDAM
EAST
AMSTERDAM
AMSTERDAM
SOUTH
SOUTH-EAST
10 min
SCHIPHOL
VANAF
2018
5 KILOMETERS
The power of connections ... in Amsterdam
... to Amsterdam
Our central location means that RAI Amsterdam can offer its visitors a truly inspiring experience.
The RAI Amsterdam Convention Centre is highly accessible
Historic city centre
322 direct flights Amsterdam Schiphol Airport is known for its quality and
from both a European and global perspective.
The Dutch capital is famous for its unique canals and the 17thcentury canal belt was added to the UNESCO World Heritage list in 2010. The open culture and atmosphere of Amsterdam
accessibility. Thanks to an impressive 322 direct connections with other cities, the airport is a major transport network hub. With 58 million passengers a year, Schiphol is the fifth largest
ensure that all international guests feel welcome.
airport in Europe. Short distance from airport to RAI Amsterdam
Compact city, with everything within easy reach A major benefit for international visitors is that Amsterdam is
The runway at Amsterdam Schiphol Airport is just ten kilometres from the RAI Amsterdam Convention Centre. There
much more compact than other European cities. With a distance of only four kilometres from the exhibition complex to
is a direct and very frequent connection from the railway station in the airport. Once the train departs, it takes no more than ten
the heart of the city centre, visitors can easily combine their business trip with a pleasant, urban experience.
minutes to reach the Amsterdam RAI station.
18
From organising ... Marketing
International • Develops and operates around 15 international trade exhibitions in and
In the Netherlands • Develops and operates around seven national trade and consumer exhibitions
• Strategic programme focused on revitalising physical encounters
outside of Amsterdam • World market leader in Amsterdam with
in Amsterdam • Portfolio includes some of the largest
• Development of online communities and virtual contact strategies
five RAI-organised • Spin-offs of the ‘mother brands’ in
paid public events in the Netherlands
Mexico, China, Turkey and the United States • International network of offices and
• Marketing Services manages and operates a visitor database with around two million unique entries • Partnership & Media Solutions optimises exposure during and around events
agents
... to facilitating Organiser Services
Exhibitor Services
• Offers knowledge and networks related to the Netherlands, Amsterdam and the RAI • Solutions in the field of IT, hotel accommodations, catering, logistics, audio-visual and media • Exhibition management; advice and support • Visitor/exhibitor registration systems • Oversees various event-related licensing issues
• Webshop with products and services for exhibitors. Integration of event organiser in website • Service desk for last-minute orders • Extensive range: stand construction, meeting rooms, lounges, ICT and more • Exhibitor catering, flexible availability
Visitor Services • Hotel Service arranges over 100,000 hotel bookings a year • Guaranteed availability of rooms for large events • Special conditions for flights via partner KLM • Parking, cloakrooms and other visitor services • Various types of visitor catering: wide range of bars, lounges, 9 restaurants and 28 concession stands; from buffet to à la carte and take away venues • Transfers, excursions, car and bicycle rental, boat tours and more
RAI Amsterdam has the following certificates: • 5-hamers • ISO-9001 (quality management) • AIPC Gold • ISO-14001 (environmental management) • EarthCheck Gold • Green Key Gold
• ISO-20121 (event sustainability)
• Top Employer
• BREEAM-Excellent (for Amtrium building)
• OHSAS-18001 (occupational health and safety)
19
#02
Statement from the Supervisory Board
20
To the general meeting The Supervisory Board hereby presents the annual report of RAI Holding B.V.
approved audit statement from
The annual report was compiled by the Executive Board, and includes the financial statement for
accountant
2016. BDO Audit & Assurance BV (BDO) checked the financial statement and provided it with an audit statement, which is included in the ‘Other Information’ section of this annual report.
Supervisory, advisory and employer role tasks of the Supervisory Board
The Supervisory Board oversees the policy of the Executive Board and the general affairs of the company and its affiliates. In addition, the Supervisory Board provides the Executive Board with advice, both at the latter’s request and on its own initiative. The Supervisory Board also has an employer role with regard to the Executive Board. In the performance of its duties, the Supervisory Board acts in the interests of the company and its affiliates and takes into account the interests of the company's stakeholders. The manner in which the Supervisory Board has acted in these roles during the reporting year is described below.
The supervisory role of the Supervisory Board periodical reports: results of the year-to-date report and report to shareholders
The internal supervision of the Executive Board and the general affairs of the company is realised by monitoring the achievement of the intended results. For this purpose, the Supervisory Board makes use of two progress reports submitted by the Executive Board: the year-to-date results (YTD) and the report to shareholders. The discussion of these reports is regularly on the agenda of both the Audit Committee and the full Supervisory Board.
The year-to-date report provides a rolling forecast of the annual results. It also includes other financial indicators, such as capacity utilisation and liquidity. The report to shareholders features non-financial goals as well as financial reports.
In addition to the regular periodic supervision of the progress of the financial and operational targets, the following topics were considered during the reporting year.
Acquisition of shares in IBEX Supervisory Board kept informed of progress
In the autumn of 2016, RAI Amsterdam acquired a 50% share in IBEX LLC, the company that owns the American exhibition title IBEX (International Boatbuilders Exhibition and Conference). The acquisition was discussed in the Supervisory Board on various occasions, and the Supervisory Board was kept informed of the progress of the acquisition process.
expansion potential and
Partly due to this acquisition, the Supervisory Board discussed the potential for expansion and
management of foreign
further acquisition opportunities abroad. It also met with the Executive Board to discuss the
activities discussed
management of non-Dutch participations.
21
Alternatives for AutoRAI / BedrijfsautoRAI cancellation of AutoRAI &
Although AutoRAI 2015 was successful, there was an insufficient basis for continuity in the future.
BedrijfsautoRAI 2017
The reporting year also saw the cancellation of BedrijfsautoRAI 2017. The Supervisory Board met with the Board to discuss the consequences of these developments for RAI Amsterdam.
Pension provision pension provision for RAI employees
In 2013, RAI Amsterdam entered into a new five-year pension administration agreement for an average pay scheme with Delta Lloyd. The Supervisory Board was kept informed of the progress of the Executive Board related to the pension provision after 2018 in meetings at which various specialists were consulted.
Multifunctional parking garage realised within budget and deadline
The Supervisory Board monitored the progress of the realisation of the multifunctional parking garage, which officially opened on 6 October 2016. The parking facilities had already been taken into use during the IBC exhibition in September. The Supervisory Board is satisfied with the process that led to the realisation of the garage on time and within budget.
Risk management Supervisory Board agrees with (possible) risks and associated consequences as estimated by the Board
RAI Amsterdam has systems for risk analysis and control, and periodically informs the Supervisory Board via the Audit Committee of risk-related developments. The risk aspects of the relevant topic are also explicitly mentioned by the Executive Board for all matters where a decision of the Supervisory Board is requested. The Audit Committee has indicated to the Supervisory Board that the Executive Board has correctly estimated the risks. The Supervisory Board agrees with the indicated risks and estimated consequences. Some of the specific risks discussed are detailed in the ‘Audit Committee’ section of this report. The Executive Board has clarified this risk analysis in the Governance and Risk Management section.
Obsolete position
The Supervisory Board decided to cancel the position of Internal Auditor as of 1 January 2017 because it has become obsolete due to the scope of RAI Amsterdam.
Conflicting interests and additional functions of Executive Board members specified in accordance with the regulations
The Executive Board members made no (new) notifications to the Supervisory Board chair in 2016 regarding (potential) conflicting interests that would affect the company and/or the relevant Board member.
In 2016, the RAI met with Amsterdam public transport company GVB to discuss the purchasing of transport. As RAI Amsterdam CEO Hans Bakker was also active as chair of the Supervisory Board of GVB Holding NV, he did not participate in these meetings, which were led by Maurits van der Sluis on behalf of the RAI. For the same reason Mr Bakker was not involved in any discussions on this topic.
As the new CEO of RAI Amsterdam, Mr Riemens expressed his willingness to succeed his predecessor Mr Bakker as the chairman of Jumping Amsterdam. The Supervisory Board accepted this proposal in September 2016.
22
The advisory/sounding board role of the Supervisory Board In its advisory role, the Supervisory Board acts as a sparring partner for the Executive Board. The following topics were among those discussed within the Supervisory Board, which then gave advice and comments.
Sale of shares by Municipality of Amsterdam informed of decision to sell
In 2016, the Municipality of Amsterdam, which owns 25% of the shares in RAI Holding B.V.,
shares by the Municipality of
decided to sell its municipal interest, under the condition that the continuity of RAI Amsterdam and
Amsterdam
the cooperation between the City of Amsterdam and RAI are safeguarded. The Supervisory Board informed the Municipality that having only one shareholder was less desirable for all parties involved, and that the Municipality should be aware of the consequences and possible risks of the sale for the city and the Amsterdam region.
valuation and developments discussed
Related to the sale, the Supervisory Board had various meetings with the Executive Board to discuss the valuation of RAI Holding B.V. and any developments in the process.
Brainstorm session participation in virtual strategy brainstorm session
During the reporting year, Mrs Van Gaal and Mr Houterman participated in a brainstorm session on the virtual strategy. A follow-up took place prior to the first Supervisory Board meeting of 2017.
Sixty-day plan new Board sixty-day plan discussed
The Executive Board introduced the Supervisory Board to its 60-day plan via a presentation of observations made by Mr Riemens and Mr Van der Sluis during their first days as Board members of RAI Amsterdam. It involves a discussion piece that serves as a basis for the Executive Board’s plans for the company. The Supervisory Board complimented the Board members on their approach.
Employee satisfaction survey excellent results, even better than 2014
Every two years an employee satisfaction survey is held among RAI Amsterdam employees. The results of the 2016 survey were discussed in the Supervisory Board meeting in December. The general satisfaction among RAI employees scored an 8.2 compared to 7.9 in 2014. Aspects such as activities, colleagues and managers also scored as high as or higher than in 2014. The Supervisory Board congratulates the Executive Board with the results and high response level.
The employer role of the Supervisory Board Departure of Hans Bakker, expansion and appointment of new Executive Board managing director retires
The statutory board position of Hans Bakker ended on 1 May, and he retired on 1 August 2016.
The Supervisory Board would like to once again express its gratitude for everything Mr Bakker has meant for the RAI. During his fourteen years of operational management, he guided RAI Amsterdam through the recession and helped its further development at every turn. He left the company in a good condition.
23
goodbye event
The ‘Grensverleggend RAI’ event took place on 28 April. This celebratory get-together marked the departure of Hans Bakker, introduced the new Executive Board to partners and celebrated RAI Amsterdam’s international success. In the presence of 750 internal and external guests, Mr Bakker received a royal distinction from Amsterdam Mayor Eberhard van der Laan as recognition of his personal and business accomplishments in service of the community.
changes at the top with new CEO and COO
The departure of the managing director gave the Supervisory Board an opportunity to re-examine the executive structure of RAI Amsterdam. The Supervisory Board decided to appoint two statutory executives to lead RAI Amsterdam: a chief executive officer (CEO) and a chief operational officer (COO).
Paul Riemens appointed as CEO
In Riemens, RAI Amsterdam has appointed a man with a proven track record of operating in an international high-pressure environment where stakeholder management is critical to success. In addition, the Supervisory Board sees Riemens as a passionate person who connects people and ideas.
Maurits van der Sluis appointed as COO
After an independent assessment, the position of COO of RAI Amsterdam was filled by the appointment of Maurits van der Sluis, effective on 7 April 2016. Van der Sluis has worked at RAI Amsterdam in various commercial roles since 1996, most recently as commercial director of RAI Amsterdam Convention Centre. He therefore has a proven track record and knows the company through and through.
With Paul Riemens and Maurits van der Sluis, the Supervisory Board feels it has appointed a statutory Executive Board capable of taking on all the challenges of the coming years.
new remuneration policy
In 2016, the Supervisory Board discussed a new remuneration policy for the Executive Board, after considering recommendations by Deloitte and taking into account the concept compensation policy of the City of Amsterdam. The Supervisory Board forwarded the remuneration policy to the general meeting of shareholders on 7 April 2016. Once the City of Amsterdam agreed as a shareholder, the general meeting of shareholders voted in favour.
Future of the RAI organisation discussions on culture and structural changes
Mr Riemens held a presentation on the future of the RAI organisation in the Supervisory Board meeting in December, which considered the culture and structural changes requested by the Executive Board. The Supervisory Board shares this vision of the future.
'Four eyes’ principle application of the 'four eyes' principle
RAI Amsterdam maintains a so-called 'four eyes’ principle, which means that it aims to always be represented by two people. The appointment of two statutory executives illustrates this principle. A set of rules for the Executive Board regarding cost statements and reception of gifts was also adopted in 2016.
24
Assessment interviews performance reviews with
The Supervisory Board carried out a number of assessment interviews with members of the
members of the Executive
Executive Board and managers. There was also an assessment interview with the secretary at the
Board, managers and
end of 2016.
secretary
General meeting April 2016
The general meeting was held on 7 April 2016 to discuss issues such as the annual report 2015, the setting of the dividend in 2015, the annual plan 2016 (including budget) and the report to shareholders. The City of Amsterdam explained the remuneration policy set by the Mayor and Municipal Executive for shareholdings. The entire Supervisory Board was present at the general meeting.
Relation management role of the Supervisory Board informal consultation with shareholders
Shareholders are consulted during informal discussions as well as during the General Meeting. Each shareholder is regularly kept abreast of the developments within RAI Amsterdam by the Executive Board and two members of the Supervisory Board in the spring and autumn.
consultation with works council
Two meetings of the RAI Amsterdam works council are attended each year by a delegate from the Supervisory Board. On 18 April Mr De Boer and Ms Van Gaal visited the works council, while Mr Houterman and Mr van der Steen were present on 27 October. On 26 October the members of the Supervisory Board attended the start of construction of the new nhow Amsterdam RAI hotel.
works council closely involved
In 2016 the Supervisory Board started a search for a new member in which the works council had
in selection process for new
an enhanced right of recommendation. This led to a unique procedure in which the two members of
Supervisory Board member
the Supervisory Board’s selection committee worked closely with a works council delegation throughout the selection process. The profile was formulated and the shortlist selected entirely based on joint consultation. Interviews with the potential candidates were carried out by a delegation of the works council together with the selection committee of the Supervisory Board. The ultimate decision was also made jointly by the works council and the Supervisory Board. Both found this working method to have been highly constructive and agreeable.
Activities of the Supervisory Board Composition of the Supervisory Board
On 1 January 2016, the Supervisory Board had five members. At the end of 2016 there was one unfilled position due to the departure of Ms Rijxman. The Supervisory Board decided to hold off on filling the position pending the selling of shares by the Municipality of Amsterdam. In addition, another position became available on 31 December 2016 due to the departure of Mr Houterman.
25
termination of Ms Rijxman’s Supervisory Board membership
The first term of office of Shulamith Rijxman as member of the Supervisory Board ended during the General Meeting on 7 April 2016. Ms Rijxman had let the Supervisory Board know that she did not wish to be considered for a second term as she has a large number of other functions in addition to her commissionership at RAI Amsterdam. The Supervisory Board understands and respects this decision, and is grateful her efforts on behalf of RAI Amsterdam.
Mr Houterman leaves board
Mr Houterman stepped down as Supervisory Board member on 31 December 2016. He had been part of the Supervisory Board for 12 years, and the Supervisory Board thanks him for his inspiration, efforts and collegiality.
appointment of Mariëlle de
Outside of meetings, both shareholders agreed to appoint Ms Mariëlle de Macker as Supervisory
Macker on 17 March 2017
Board member, effective 17 March 2017. Ms De Macker was selected based on her international HR experience, and will be part of the Remuneration Committee (as chair) and the Selection and Appointment Committee (as member).
The personal details of members are indicated in the In Brief section, in the paragraph ‘Composition of Supervisory Board and Executive Board’.
Supervisory Board regulations revision of regulations
On 22 September 2016, the Supervisory Board established revised regulations for the Supervisory Board of RAI Holding B.V., giving it the authority to increase or decrease the value of a conditional variable payment component awarded to an Executive Board member in a previous book year if it felt that this led to unfair results due to extraordinary circumstances. The regulations of the Supervisory Board and the committees and profiles of the Supervisory Board can be found in their entirety on the RAI Amsterdam website (www.rai.nl).
Conflict of interests among Supervisory Board members reported in accordance with regulations
There were no (new) reports by members to the chair of the Supervisory Board in 2016 about any conflicts of interest relevant to the company or individual members of the Supervisory Board. During discussions on the contractual agreements related to the Amsterdam RAI hotel, Mr Houterman left the meeting due to his commissionership at the Hampshire Hotel Group.
Exemption exemption agreement
All Supervisory Board members and Executive Board members have been declared exempt by the company. It was decided to put the exemption and associated policy on the agenda of the Audit Committee once a year.
Meetings four regular meetings
In 2016 the Supervisory Board held four regular meetings in the presence of the statutory board, the financial director and the company secretary. In the meeting in which the financial statement was submitted for approval, the external accountant was present for that specific agenda item.
26
All Supervisory Board members were present during the board’s meetings. In principle, preconsultation between the Supervisory Board members takes place prior to the regular meetings. In addition, the members of the Supervisory Board keep in contact where necessary outside of the meetings.
meetings without Executive Board presence
Outside of the regular meetings, the Supervisory Board also met in closed sessions. Topics discussed during these meetings included the implementation of the new hierarchical structure, the appointment of new members and the possible sale of shares by the Municipality of Amsterdam.
regular consultations with CEO
The chair of the Supervisory Board and the CEO met regularly to discuss progress on various topics in the report year.
Committee reports composition of Supervisory Board committees in reporting
The Supervisory Board established an Audit Committee, a Remuneration Committee and a Selection and Appointment Committee from among its members.
year Audit Committee
In the reporting year, the Audit Committee consisted of Mr Van der Steen (chair) and Mr Houterman. After the resignation of Mr Houterman on 31 December 2016, the Audit Committee consisted of Mr van der Steen (chair) and Ms Van Gaal on 1 January 2017.
Remuneration Committee
The Remuneration Committee consisted of Ms Van Gaal (chair) and Mr De Boer. As of 17 March 2017, the Remuneration Committee comprises Ms De Macker (chair) and Mr De Boer.
Selection and Appointment Committee
The Selection and Appointment Committee consisted of Mr De Boer (chair) and Ms Van Gaal. As of 17 March 2017 the members were Mr De Boer (chair) and Ms De Macker.
Audit Committee task
The Audit Committee prepares the Supervisory Board’s decision-making and advises the board and the statutory directors on its findings in fields such as finance, internal risk management and control systems, risk analysis, applications of information and communications technology (ICT) and the activities and recommendations of the accountant.
three meetings
The Audit Committee held three meetings during the reporting year. The CEO is responsible for Finance, and therefore attends the Audit Committee as part of the new Executive Board structure. The COO also attended most meetings in 2016.
report and advice shared in
The concept report of the Audit Committee was a fixed agenda item on each following meeting of
Supervisory Board meetings
the Supervisory Board. In each of these meetings, the Supervisory Board received advice on the decisions to be taken by the Supervisory Board as prepared by the Audit Committee.
security policy fixed agenda
The security policy is a recurring agenda item in the meetings of the Audit Committee. A special
item for Audit Committee
focus herein is on cybercrime, with the possible results of other calamities related to the security policy also being discussed periodically. In the reporting year, activities took place to test the
27
alertness of employees with regard to IT security. The requirements for the company are increasingly strict, and, partly based on the test results, the Supervisory Board asked the Executive Board to create more awareness in this regard.
policy outline memorandum unchanged
The Audit Committee was informed of the planning for the policy outline memorandum 2016-2021 presented by the Executive Board. In meetings with the Executive Board, the Executive Board proposed upholding the policy outline memorandum 2015-2020 in 2016.
agenda items
In the reporting year, the Audit Committee discussed issues such as the quarterly results, concepts of the accountant report, annual report and financial statements for 2015, security policy (fixed agenda item), dividend policy, liquidity, the 2017 annual plan (including budget and investments), risk analysis and the internal audit plan.
The Audit Committee determined the audit plan and decided that its regulations would remain the same as in the previous year. Specific items discussed involved the pension provision for RAI employees and the company party.
regular consultation with the financial director
The chair of the Audit Committee and the financial director met regularly during the reporting year to discuss the progress of various matters.
Remuneration Committee task
The task of the Remuneration Committee includes making proposals to the Supervisory Board and preparing accountability regarding the recommended remuneration policy and the actual remuneration of the members of the company’s statutory board.
The most important topics covered by the Remuneration Committee in the reporting year were continuing the chosen remuneration policies within the company in order to achieve better alignment with the market, following market developments, and making agreements with the new Executive Board.
Selection and Appointment Committee task
The duties of the Selection and Appointment Committee include drawing up selection criteria and appointment procedures for members of the Supervisory and Executive Board, assessing the size and composition of both boards and making proposals on the profile of the Supervisory Board at least once a year, reviewing the functioning of individual Supervisory Board members and reporting to the Supervisory Board at least once a year, making suggestions for appointments, and supervising the policy of the Executive Board with regards to selection criteria and appointment procedures for senior management.
on the agenda
In the reporting year, the Selection and Appointment Committee examined the hierarchical structure of RAI Amsterdam, the profile of the Supervisory Board, the recruitment and selection of a new member of the Supervisory Board, and the recruitment and selection of the new statutory board.
28
Self-evaluation of Supervisory Board evaluation of Supervisory Board
At the end of 2016 the Supervisory Board performed a self-evaluation under the supervision of an external party. One of the issues highlighted involved the positive contribution of the constructive relationship between the Supervisory Board and Executive Board. In line with the proposed discussion points, the Supervisory Board decided, among other things, to acquire a new Supervisory Board member in close cooperation with the works council.
Ongoing education no specific need for additional education initiated by RAI Amsterdam
The members of the Supervisory Board took part in various educational activities in the framework of their other supervisory functions. There was no specific need in the reporting year for a particular training or education initiated by RAI Amsterdam.
Digital working environment implementation started
In late 2016 the Supervisory Board started implementing a new digital working environment which provides access to documents and facilitates communication between members. The environment will be further developed in 2017.
Annual report and financial statement 2016 considered at length in Audit Committee, discussed with Executive Board
Supervisory Board accepts financial statement and dividend payment of €2.284 million
The Audit Committee discussed at length the financial statement and annual report with the Executive Board and the external accountant BDO. The Supervisory Board then discussed the annual report with the Executive Board in the presence of the external accountant.
The Supervisory Board accepted the financial statement and agreed with the Executive Board’s proposal to pay a dividend of €2.284 million including dividend tax over the reporting year, and add the remaining profit to ‘unappropriated profit’ under shareholder equity. The dividend was determined in accordance with the 2013-2018 dividend policy, determined at the General Meeting on 17 April 2014.
request to determine financial
The 2016 financial statement will be put to the general meeting of shareholders on 20 April 2017.
statement, request discharge
The Supervisory Board proposes that the Executive Board be given discharge for its management, that the Supervisory Board be given discharge for its supervision, and that the financial statement be approved.
29
Compliments and a word of thanks The Supervisory Board complements the employees and Executive Board of RAI Amsterdam on their performance, including the high customer satisfaction levels. The realisation of the multifunctional parking garage, within time, on budget and at the desired quality level, was a fine example for how the convention centre can be expanded and maintained. The Supervisory Board is also very impressed with the increased scores seen in the employee satisfaction survey.
Thanks to the inspired efforts of all employees and the Executive Board, RAI Amsterdam offers a unique and dynamic place where knowledge and people come together successfully on a daily basis. The Supervisory Board compliments the employees and Executive Board not only on the results achieved in the reporting year, but also on their continuous desire to make RAI Amsterdam excel in every aspect. We look forward to the future with confidence.
Amsterdam, 16 March 2017
Supervisory board RAI Holding B.V.
Roelf de Boer, chair John van der Steen, vice-chair Annemarie van Gaal
30
31
#03
Executive Board report
32
Results in reporting year RAI Amsterdam had an operating profit of €9.4 million on a turnover of €120.2 million. After deducting interest costs and corporation tax, the net result in the financial year was €5.0 million.
2016 compared with 2014
Due to the biennial cycle of events in RAI Amsterdam, comparing the results of 2016 with those of 2014 provide a more realistic picture of developments in the even years. In this section RAI Amsterdam presents all results of the past five years to provide insight into the total development of turnover, expenses and results.
Turnover turnover virtually the same as 2014
The turnover of RAI Amsterdam in the reporting year was almost the same as 2014. The turnover of RAI-organised exhibitions and events increased by €2.7 million from 2014, while the letting to third parties fell by €2.5 million.
Key financial data amounts x €1 million
2016
2015
2014
2013
2012
turnover
120.2
126.2
119.7
116.6
134.7
EBITDA
24.4
22.7
27.9
22.4
22.8
operating results
9.4
8.9
13.7
7.1
6.0
net results
5.0
4.2
9.3
3.3
2.1
shareholder equity
87.9
86.7
84.7
77.7
76.4
balance sheet total
205.8
201.8
198.0
189.9
196.2
provisions
2.0
2.1
3.4
0.7
6.5
18.3
16.8
22.3
5.6
11.1
2016
2015
2014
2013
2012
7.9%
7.1%
11.4%
6.1%
4.5%
2.55
2.76
2.22
2.75
2.79
42.7%
43.0%
42.8%
40.9%
38.9%
investments in tangible fixed assets
Ratios
operating result in percentage of turnover senior Net Debt / EBITDA solvency
33
Turnover Amounts x €1 million
2016
2015
2014
2013
2012
Exhibitions and events
50.2
56.9
47.5
39.4
52.5
Letting to third parties
19.8
18.1
22.3
23.6
23.2
Trade journal publications
-
-
-
-
3.2
Catering
14.5
15.5
15.1
17.8
16.9
Parking
5.0
5.9
4.5
4.3
5.4
Hotel commission
2.6
3.3
3.4
3.5
3.1
26.1
24.3
24.8
20.8
22.3
2.0
2.1
2.1
7.2
8.1
120.2
126.2
119.7
116.6
134.7
Facility services Other Turnover
Outsourced work
47.1
58.6
45.4
46.0
57.3
Wages and salaries, incl. social security and
29.0
27.8
29.2
29.1
31.5
Amortisation
15.0
13.8
14.3
15.3
15.8
Other operating expenses
19.7
17.0
17.2
19.1
24.1
110.8
117.2
106.1
109.5
128.7
pension contributions
Operating expenses EBITDA
24.4
22.7
28.0
22.4
21.8
Operating result
9.4
8.9
13.7
7.1
6.0
As % of turnover
7.9%
7.1%
11.4%
6.1%
4.5%
5.0
4.2
9.3
3.3
2.1
Net result
* includes, among other things, parking proceeds, hotel commissions and facility services
Costs €4.7 million increase in operational costs compared to 2014, total wage costs
The total operating costs in 2016 were €110.8 million, an increase of €4.7 million compared to the previous year. While the costs for wages and salaries, social security and pensions fell, the overall increase is related to the specific composition of the event portfolio in 2016.
reduced investment of €18.3 million
Over the past year RAI Amsterdam invested €18.3 million in buildings, installations, grounds, inventory and work in progress. The investments amounted to €16.8 million in 2015 and €22.3 million in 2014. The investments in the reporting year mainly concerned the completion of the multifunctional parking garage. In 2014 the main investment was in the Atrium building.
cash flow from operational activities: €26.2 million
slight fall in interest costs
The cash flow from operational activities amounted to €26.2 million (2015: €19.7 million, 2014: €27.2 million).
The interest costs were slightly lower, reduced from €3.3 million in 2015 to €2.6 million in the reporting year. As in previous years, the agreed ratios with the bank were easily realised.
34
Result good operating result from a
The operating results were €9.4 million (2015: €8.9 million, 2014: €13.7 million). Taking into
historical perspective
account the biennial event cycle, RAI Amsterdam achieved a good operating result.
net profit €5.0 million
After deduction of the interest costs and taxes, the net profit was €5.0 million compared to €4.2 million in 2015 and €9.3 million in 2014 (without incidental fiscal benefit in 2014 of €7.8 million).
International event days The RAI Amsterdam Convention Centre had 292 days of international events in 2016 (207 in 2015, 298 in 2014).
International event days Total number of days for international exhibitions and events
2016
2015
2014
2013
292
207
298
271
265
Event days for international exhibitions and conferences
35
2012
RAI AMSTERDAM STIMULATES CITY AND REGION
In addition to the results for RAI Amsterdam, our contribution to the economy in the Amsterdam region has also improved: one euro of added value for the RAI Amsterdam Convention Centre translates into seven euros for tourism and companies in the region. The impact of RAI Amsterdam increased partly due to the growth of international events, which generate more turnover for hotels, restaurants and transport than national events.
36
Events RAI Amsterdam completed a total of 477 events in 2016, attracting a combined total of over 1.5 million visitors. This part of the report presents a cross section of these events and provides more information on some.
facilitating and/or organising
Three categories of event can be distinguished based on the role played in them by RAI Amsterdam:
458 events were organised by our clients in the Convention Centre in Amsterdam with RAI Amsterdam playing a facilitating role. These events together accounted for nearly a million visitors; Thirteen events were organised by the RAI itself in the Convention Centre in Amsterdam with RAI Amsterdam having an organising and facilitating role. Some 450,000 visitors were welcomed to these events; The remaining six events were organised by the RAI abroad; RAI Amsterdam only had an organising role here. Around 100,000 visitors attended these events.
This section will look at the three categories one by one. The overview of the events organised by third parties involves a random selection, illustrating the breadth of the range.
Events organised by third parties RAI Amsterdam facilitates the organisation of a growing number of Dutch and international exhibitions, conferences, corporate events and other events organised by third parties. The multifunctional convention centre is also rented out as the RAI Theatre for productions. In total, the RAI has hosted 458 events organised by third parties.
International exhibitions ISE (Integrated Systems Europe) trade exhibition for the professional AV and electronic systems integration industry
ISE is a trade exhibition for the professional AV and electronic systems integration industry, organised every year in RAI Amsterdam. The rapidly increasing size and reputation of this exhibition led the organisers to expand it from three to four days in 2016. ISE hosted more than 1,000 exhibitors showcasing their products and services focused on the integration of AV systems with IT. The exhibition received more than 65,000 visitors, a rise of more than ten per cent compared to last year. Media from forty different countries reported on the latest developments.
IBC (International Broadcasting Convention) trade exhibition for broadcast and media technology
A record number of more than 55,000 professionals from 160 countries came to Amsterdam in early September for the International Broadcasting Convention (IBC) 2016. More than 1,800 companies showcased their latest broadcast and media technology products. No fewer than 249 companies participated for the first time in 2016. An important addition to the 'feature areas' during this edition was the IBC IP Interoperability Zone, an initiative that aims to develop an open standard for connectivity.
37
Fespa Digital trade exhibition for largeformat digital printing
FESPA Digital, an exhibition for large-format digital printing, celebrated its tenth birthday in 2016 by returning to Amsterdam, the city where it originally began. Hosting this exhibition involved some very dynamic planning on the part of RAI Amsterdam due to the fact that the next exhibition, HISWA boat show, followed so soon after. The transition required a great deal of planning and production skills from the RAI organisers and was documented in a film titled The Challenge.
PLMA (Private Label Manufacturers Association) trade exhibition for Private Label products
PLMA’s annual international World of Private Label exhibition has for thirty years brought retailers and producers together and provided them with support in finding new products, creating new contacts and discovering new ideas to stimulate the success and expansion of their private label programmes. The market share of private labels is currently larger than ever before. The future promises even more growth given that retailers are expanding worldwide and playing an increasingly large part in marketing themselves and the products they sell. PLMA’s World of Private Label 2016 hosts more than 4,200 stands, including 56 national and regional pavilions. The event, which is continuously growing, had more than 12,000 visitors in 2016.
World Bulk Wine Exhibition for wholesale buyers and sellers of wine
The World Bulk Wine Exhibition (WBWE) arose from the need to create a meeting place for wholesale buyers and sellers of wine. The event took place for the eighth time in 2016, with 220 exhibitors and registered 6,000 professional wine purchasers from 64 countries.
MRO Europe Aviation Week exhibition for the maintenance and repair of aircraft
MRO Europe Aviation Week took place in October. Europe's largest exhibition for aircraft maintenance and repair attracted exhibitors from more than eighty countries.
Electric & Hybrid Marine World Expo trade exhibition for the electric
The Electric & Hybrid Marine World Expo took place in June. The exhibition covers electric and
and hybrid propulsion of water
hybrid technologies, components and solutions for water craft propulsion. It brings together
craft
exhibitors and visitors from around the world, and its audience consists of groups such as boat builders, owners & designers and engine manufacturers.
Helitech International civil and semi-public helicopter sector
Helitech International 2016 landed in RAI Amsterdam in October, the only event in Europe to focus entirely on the civil and semi-public helicopter sector. For 25 years Helitech International was organised in the United Kingdom, but a globalising market encouraged it to take a more international approach. The event showcased the latest helicopters, flown in from all over the world. This meant that the location had to have the appropriate facilities as well as the cooperation of the authorities. A helipad was set up next to the hall where the event was organised.
EFTTEX 2016 trade exhibition for angling
The angling exhibition EFFTEX is organised every year by the European Fishing Tackle Trade Association (EFTTA). The 35th edition took place in June 2016 and provided a platform for 215 exhibitors from 35 different countries to present their latest products to wholesalers, shop owners
38
and the press.
Crop World productivity and sustainability of crop growing
The 2016 edition of the annual Crop World Global Congress & Exhibition focused on improving the productivity and sustainability of crop growing through innovation and technology. The two days of the show attracted visitors from more than a hundred different countries.
Dutch-Bangla Expo Bangladeshi companies and sectors
The Dutch-Bangla Expo is the largest trade exhibition organised by the Dutch-Bangla Chamber of Commerce and Industry (DBCCI). It provides a stage for a select group of some seventy Bangladeshi companies that represent the country’s most important industries, from textiles to pharmaceuticals and from leather to shipbuilding. It serves as an extraordinary opportunity to meet these firms and discover new business opportunities.
National exhibitions RAI Amsterdam organised 23 national exhibitions in 2016, attracting around 376,000 visitors.
VT Wonen&Design Beurs largest and most complete
The vt wonen&design beurs took place in the autumn. It was frequented by visitors who are
consumer exhibition for
decorating, building, renovating and/or purchasing a house and have set aside a substantial
interior decoration and design
budget. Organised by Sanoma (vtwonen, Eigen Huis & Interieur and Ariadne at Home), the vt wonen&design beurs is the largest and most complete consumer exhibition of its kind. In 2016, it received 88,000 visitors from every corner of the country.
Amsterdam Food Festival large food event
Amsterdam Food Festival organised large indoor food events in venues including RAI Amsterdam. The November 2015 edition, which required seventy food trucks and attracted 45,000 visitors, was a huge success, while the Easter 2016 edition was very disappointing. The organisers had expected at least as many visitors to the latter event as they hosted at the former, even extending the festival by a day. However, various reasons, including good weather, meant that only 30,000 people showed up and Amsterdam Food Festival declared bankruptcy.
PAN Amsterdam exhibition for art, antiques and design
The thirtieth edition of PAN Amsterdam took place in November. This annual exhibition for art, antiques and design offered seasoned collectors as well as beginners in the art market a varied choice of many thousands of objets d’art. More than 40,000 art lovers, both professional and private buyers, visited the exhibition. The quality of the items on offer was certified before the event by twenty specialised committees consisting of eighty experts, who assessed each article for authenticity, quality and condition.
Modefabriek platform for fashion brands and labels
Modefabriek is the semi-annual professional platform in the Netherlands where hundreds of brands and labels present their latest collections to the retail sector, press, stylists and other fashion professionals. Modefabriek is only open to registered exhibition visitors with a chamber of
39
commerce number and accredited members of the press. Visitors include retailers, wholesalers, suppliers, brands, labels and agencies. The winter edition took place in January 2016. The summer editions of Kleine Fabriek, the children’s clothing version of the event, and Modefabriek itself were organised on the same dates in July.
Masters of LXRY lifestyle exhibition
The largest edition in the history of the premium lifestyle exhibition Masters of LXRY was organised in December. More than 400 different brands and companies showcased the best art, interior design, design, gastronomy, jewellery, watches, travels, boats and cars to some 50,000 visitors. The fifteenth anniversary of the exhibition was celebrated by having the Ballroom Elicium C serve as the entrance hall, augmented by a grand exhibition space and walk of fame.
PROVADA meeting place for the real estate sector
PROVADA is an annual meeting place for the real estate sector which allows developers, investors, consultants, retailers, financiers, housing associations, end users and local authorities to meet each other in a professional environment over three days. PROVADA has grown into one of the largest European real estate exhibitions and an unmissable rendezvous in the Netherlands. This year it welcomed 22,166 visitors (nine per cent more than the previous edition) and 247 exhibitors.
Comic Con Europe inspired by the San Diego and New York Comic Con
The first Comic Con in Amsterdam, held in August, was a resounding success. Emulating San Diego Comic Con and New York Comic Con, RAI Amsterdam was transformed into a true party location for fans. There were 30,000 visitors to this first edition, which was entirely sold out, resulting in busy workshops and full meeting rooms near the stage.
Nationale Carrièrebeurs the largest career event in the Netherlands
The Nationale Carrièrebeurs is the largest career event in the Netherlands. It provides a stage for employees to promote themselves, and each day of the exhibition features a large number of substantive, sector-related and career-oriented workshops. The event offers companies an exceptional opportunity to present themselves as employers (employer branding) and come into contact with potential candidates (recruitment). The nineteenth edition of the event in April 2016 welcomed more than 11,000 visitors to the exhibition floor.
Offshore Energy rendezvous for the Netherlands offshore industry
Offshore Energy, the most important event for the offshore industry in the Netherlands, again grew in 2016, moving to halls 1, 2, 4 and 5. It attracted an audience of more than 11,500 offshore energy professionals. During the three-day event, 667 companies showcased their products and services. The conference addressed current and future issues in the offshore industry, including developments in oil & gas, offshore wind and marine energy.
KunstRAI exhibition for contemporary art
The 32nd edition of KunstRAI in June, where over seventy galleries presented their work, attracted more than 12,000 visitors. The organisers had originally expected more visitors, but the summer weather kept a lot of people outdoors instead. Nonetheless, brisk business was conducted at the
40
contemporary art exhibition for the first time in years.
Building Holland for the construction industry
Building Holland is the integral event of choice for the construction industry in the Netherlands. It brings together all the links in the sector for knowledge-sharing, concept development and cooperation: architects, contractors, installers, housing corporations, real estate developers, advisors and suppliers. Knowledge platform Duurzaam Gebouwd took over the full task of organising Building Holland in 2015, while RAI Amsterdam acts as a facilitating partner. In 2016 the exhibition grew to involve over 150 partners.
Wine Professional exhibition for wine purchasers
The fourteenth edition of Wine Professional took place in January 2016, at the same time as Horecava. Its opening during the so-called ‘Diamond Awards’ was attended by over 2,500 specially invited guests, who were present for the awarding of a total of almost forty diamonds and a royal distinction, and where dozens of chefs presented thousands of hors d’oeuvres. The three days of the exhibition are visited by some 10,000 wine professionals and decision makers from the food and beverage sector every year.
Tattoo, Art and Street Art Convention renowned tattoo artists from
The twelfth edition of the Tattoo, Art and Street Art Convention was organised in May 2016. It
the Netherlands and abroad
brought together many famous tattoo artists from the Netherlands and abroad, including traditional artists from New Zealand and Tahiti. In addition to tattoos, visitors were treated to displays of graffiti and street art.
International conferences ECCO Congress Crohn’s and Colitis Organisation
The 11th Congress of the European Crohn’s and Colitis Organisation (ECCO) took place in March 2016. More than 5,000 delegates participated in this medical conference.
ECCMID Clinical Microbiology and Infectious Diseases
The 25th edition of the European Congress of Clinical Microbiology and Infectious Diseases (ECCMID) was organised in April 2016. Over 11,000 delegates from 123 countries shared the latest state of the art in their field.
European Breast Cancer Conference European Breast Cancer
The tenth European Breast Cancer Conference (EBCC) took place in March 2016. This three-day
Conference
multidisciplinary conference focusing on breast cancer treatment brought together 7,000 oncology surgeons, medical oncologists, pathologists, radiotherapists, plastic surgeons, nursing staff and specialist nurses to RAI Amsterdam.
International Child Neurology paediatric neurology
The fourteenth International Child Neurology Congress was organised in May. It brought together numerous professionals in paediatric neurology.
41
Salesforce World Tour Amsterdam cloudplatform voor CRM en business-processen
The Salesforce World Tour Amsterdam took place in April. Salesforce is a cloud platform for CRM and business processes in the field of sales, service and marketing.
Silver jubilee conference for D66 congress for members of
The Dutch political party D66 celebrated fifty years of existence in 2016. The special combined
political party
election and jubilee conference was held in the place where it all began with the first members’ congress half a century ago: RAI Amsterdam.
GRI Global Conference on Sustainability organisation for guidelines on
The Global Reporting Initiative (GRI) is an international organisation which formulates guidelines
sustainability reporting
for reporting on sustainability. Companies use sustainability reports to publicly communicate their economic, environmental and social performance. GRI’s fifth global conference was organised in May.
EAES endoscopic surgery
The European Association of Endoscopic Surgery organised a conference in June with the theme 'A new way of seeing'. This focused on sharing the latest insights in the field of endoscopic surgery: 3D, 4K, image-guided procedures, robotics to nanotechnology and other techniques. Prominent experts from all over the world were present.
Euthanasia euthanasia conference
While a majority of the population in many countries is positive when it comes to the legalisation of euthanasia and/or assisted suicide, getting the issue on the agenda or realising legislation to this effect has proven difficult. There is an important role for professionals to play in this, which was the focus of the Euthanasia 2016 conference. The aim is to give the professionals knowledge and inspiration and let them share experiences.
42
InnovationLAB Innovation is one of the top three reasons why people visit an exhibition. RAI Amsterdam responded to this fact in 2015 by developing the InnovationLAB, a place where ideas, innovations and news take shape on the exhibition floor and online. RAI Amsterdam’s InnovationLAB is the fruit of cooperation with our external partners TNO, 3TU Federatie and Accenture Innovation Awards. It ensures that innovations have a clear and prominent place among RAI Amsterdam’s exhibition titles. A rich and interesting platform like the InnovationLAB enables RAI Amsterdam to stimulate exhibitors to showcase their innovations at exhibitions. Moreover, InnovationLAB offers knowledge centres, research institutes and innovation partners a platform to bring their innovations to the market, enriching RAI Amsterdam’s exhibitions. The InnovationLAB is a platform where visitors can see and experience innovations in their market online and in person. Furthermore, the platform can be used by the exhibition medium to distinguish and profile itself in this crucial perspective. InnovationLAB is a generic concept that can be customised to any exhibition. Watch an impression of how the InnovationLAB works on YouTube (https://youtu.be/-eCmSBCv0Wg).
National conferences Five national conferences were organised in 2016, attracting some 4,600 visitors in total.
Shows an atmospheric theatre hall with 1,750 seats and the latest audio-visual technology
The Auditorium, the large hall of the RAI Conference Centre, can in a very short time be transformed into the RAI Theatre, an atmospheric venue with 1,750 seats equipped with the latest audio-visual technology. In 2016 a total of 35 shows were programmed in the theatre hall, attracting 37,000 visitors. The ten performances of the musical Grease in 2016 brought in the largest audience. The final presentation of Lucia Marthas (Institute for Performing Arts) also drew large crowds. Other shows included Elvis Christmas with the King and Roué Verveer (Tjar a Lobi).
Others Jumping Amsterdam equestrian enthusiasts, dressage
Jumping Amsterdam in January was a treat for equestrian sport fans who were able to enjoy worldclass dressage in the FEI World Cup™ Dressage and spectacular show jumping, the Six Bar and Amsterdam Grand Prix. Other highlights included the fantastic shows and after parties in true Amsterdam fashion. Thursday is normally reserved for traditional show jumping and the national dressage categories. The 2016 event again received a great deal of media attention and interest from equestrian enthusiasts from the Netherlands and abroad.
43
Amsterdam Dance Event DJ Martin Garrix performs for young and old
A highlight of the Amsterdam Dance Event (ADE) 2016, held in October, was the performance by DJ Martin Garrix in the RAI. The 20-year-old Martijn Garritsen, better known as Martin Garrix, was named the world’s best DJ just before ADE. The talented young DJ has millions of fans all over the world. A nice additional touch was that, in addition to his regular performance for adult dance lovers, Garrix gave a concert specially for kids eighteen years or younger (accompanied by parents and/or legal guardians). This concert for the younger fans was entirely alcohol-free.
Own events in Amsterdam
International exhibitions ISSA/INTERCLEAN Amsterdam exhibition for the cleaning
ISSA/Interclean is the largest and most complete exhibition for the cleaning industry worldwide. It
industry
gives a comprehensive overview of global developments and the latest technologies, solutions & products for cleaning and hygiene. The exhibition programme emphasises themes such as innovation, education, networking and knowledge-sharing. It attracts managers, technical experts and specialists from all over the world by offering valuable insights and discussing current topics within the sector. The seminar programme included, among other things, a series of updates about sector trends organised in the InnovationLAB, a special RAI Amsterdam concept. The show attracted over 30,000 visitors and gave a platform to more than 800 exhibitors.
Intertraffic Amsterdam trade event for infrastructure, traffic management, smart mobility, safety and parking
Intertraffic Amsterdam, the most prominent trade event for infrastructure, traffic management, smart mobility, safety and parking, took place in April 2016. Both exhibitors and visitors rated the 23rd edition as one of the best ever. A broad range of companies, interesting presentations by leading organisations, spectacular innovations and a record number of visitors combined to create an event that excelled in both size and reach. The exhibition attracted over 30,000 visitors and almost 800 exhibitors.
METSTRADE trade exhibition for equipment, materials and systems for boating
METSTRADE is the world’s largest trade exhibition for maritime equipment, materials and systems. Its flagship METSTRADE Show is the most prominent platform in the world for professionals in the marine equipment and accessories sectors. It includes conferences, events and three pavilions dedicated to specific segments: the SuperYacht Pavilion (SYP), the Marina & Yard Pavilion (MYP) and the Construction Material Pavilion (CMP). In 2016, METSTRADE also launched an online community in addition to the annual three-day METSTRADE Show itself. This platform aims to connect companies and interested parties with each other, allowing them to share useful information about the latest developments in the industry in a way that parallels the show in Amsterdam. The METSTRADE Show 2016 brought together over 23,500 visitors with around 1,200 exhibitors.
44
GreenTech international horticultural technology
GreenTech Amsterdam is the heart of the international horticultural technology, with its unique focus on the start of the horticulture chain, the production issues affecting growers and technological solutions. The 2016 edition was held in June, and included the launch of 'Crops Theatre', a theatre session with a capacity of eighty people and a comprehensive focus on plant optimisation. Greentech Amsterdam welcomed around 10,000 visitors.
National exhibitions Huishoudbeurs largest consumer exhibition in the Netherlands
The 71st edition of Holland’s largest consumer exhibition featured a record number of activities. No fewer than thirty workshops, presentations and shows, together with more than 350 companies present, made for a great day of shopping and activities. Around 250,000 visitors came to the exhibition, an annual day out that guarantees quality shopping, product sampling and trying out lots of new things at the stands of more than 370 exhibitors. Visitors made the most of many bargains and bonuses, took part in creative workshops, and enjoyed fashion shows, top performances and impressive acts at Festival Fantastique. The latest edition included five large ‘side events’, including the Negenmaandenbeurs (expectant parents), the Model Convention and – for the second year running – the Azië Pasar Malam Festival. The ‘Bring your blog/vlog to life’ feature gave visitors the opportunity to meet famous bloggers, vloggers and Instagrammers in the flesh. These influencers each chose how to present themselves offline in their own way.
Negenmaandenbeurs the largest event on pregnancy and baby care
The Negenmaandenbeurs is the largest event on pregnancy and baby care. Young and future parents enjoy products offered by some 200 exhibitors, master classes, workshops and fashion shows. The exhibition offers lots of information and inspiration in the field of care, food, health, decoration of children’s rooms, (educational) toys, safety, transport and much else besides. The 31st edition took place in February and focused entirely on innovation and new products. It also included the Baby Innovation Awards, as well as the new Green Award given to the most ecofriendly product.
Horecava for professionals in the food service industry
Horecava has been the inspiring and innovative platform of choice for professionals in the food service industry for sixty years. It provides professional visitors with a broad and comprehensive overview of industry products, services and trends. Horecava 2016 was organised in January and included the first Young Professional Experience Day (YPED) conference, an event held in part on the initiative of FNV Horeca to encourage young people to join the food and beverage industry. The Horecava Innovation Award jury also had 124 entries to assess this year. Innovation and sustainability took centre stage at Horecava 2016, which was a resounding success with some 600 exhibitors, around 63,000 visitors and 1.5 million meetings.
45
HISWA Amsterdam Boat Show for active and recreational watersport fans
Both active and recreational watersports fans find everything they need at the HISWA Amsterdam Boat Show to prepare for the new watersport season. An extensive range of boats, from modern to classic, thousands of parts & accessories for small boats, larger motoryachts & cabin sailboats, and a wide variety of board sports were showcased in March by 300 exhibitors in the RAI. A first for HISWA in 2016 was the use of the RAI Harbour. The event had a strong watersports ambiance and included fun activities, interesting lectures, impressive clinics and expert information. The InnovationLAB of the exhibition was the nerve centre where the latest market developments, trends and innovations came together. The exhibition also saw a total of almost 800,000 meetings between visitors – over 40,000 of them – and exhibitors.
Conferences Amsterdam Security Conference developments in the security market
RAI Amsterdam responded to developments in the security market with the launch of Amsterdam Security. The new event, which is developing a strong international focus, targets companies, organisations and governments in their search for security solutions. These end users, which include airports, supermarket chains, transport companies and public safety bodies, struggle to find answers to their specific security issues at traditional trade exhibitions. To respond to all securityrelated questions, this platform comprises three different events: the Amsterdam Security Conference, the Amsterdam Security Expo and the completely new and internationally oriented Amsterdam Security Convention.
ICOMIA World Marinas Conference marina sector
The ICOMIA World Marinas Conference is intended for all those active in the marina industry: large and small marinas in the Netherlands and abroad. The conference started on the last day of the METSTRADE Show 2016, where around sixty companies from the global marina sector were present at the Marina & Yard Pavilion (MYP). The conference programme included more than forty speakers and featured the latest developments and trends in the marina sector, emerging markets and new possibilities for public-private partnerships. Featured topics included marina development and renovation, evolving environmental demands, concessions/financing, marketing and personnel policy.
Own events abroad
RAI Amsterdam organised six events abroad in 2016. These were all international exhibitions, and together attracted around 96,000 visitors.
Aquatech China for the waste and drinking water industry
Aquatech Global Events consists of a series of trade exhibitions which bring together the global waste & drinking water industry and industrial water users in the host country and abroad. The exhibition programme offers a comprehensive overview of the most recent developments in the field of water and wastewater treatment, transport & storage, process control & automation and
46
Point of Use. Aquatech targets professionals in all the fields of the water industry and attracts policy makers, specialists and other authorities who apply the relevant technology in practice. The exhibition in China was visited by over 68,000 people and hosted more than 1000 exhibitors.
FlowTech China pump and valve sector in water technology
FlowTech China 2016 brought together thousands of specialists from the pump and valve sector in water technology in the new National Exhibition Centre in Shanghai. With more than 700 international exhibitors and 20,000 products, FlowTech China 2016 had more breadth and a more international character than the previous edition. The number of visitors was well in excess of expectations, amounting to 38,276 people from over eighty countries.
Aquatech Mexico ecological and sustainable solutions for public and private sectors
Aquatech Mexico is a new exhibition hosted in the WTC in Mexico City, organised for the first time in October 2016. Some 130 exhibitors showcased products and services to 5,333 visitors. The show was held in parallel with Green Expo, the largest and most prominent exhibition in Mexico for ecological and sustainable solutions for the public and private sectors, which focuses on renewable energies & the environment and is organised by our partner E. J. Krause. Green Expo will have its 24th edition next year and is expected to welcome more than 10,000 visitors, who will be encouraged to also visit Aquatech Mexico.
Intertraffic Mexico for professionals in the traffic
Intertraffic Mexico is the platform for professionals in the traffic industry looking to benefit from
industry
business opportunities in Mexico. Some 140 exhibitors showcased their products and services there in 2016. The first edition, organised in partnership with E. J. Krause, was a huge success, welcoming over 4,100 visitors from 45 countries, nineteen of which in Latin America – far above expectations. Mexican and international companies offered solutions for the huge traffic problems affecting Mexico. A strong substantive programme made the exhibition a major success.
Partnership with E. J. Krause & Associates in Mexico The RAI has entered a partnership with E.J. Krause & Associates, Inc. (EJK) for its activities in Mexico. EJK was established in Mexico in 1984 and is one of the largest exhibition management companies in the world. Since its founding, EJK had never been involved in the launch of a new exhibition larger than 2000 square metres – that is, until the successful start of Intertraffic and Aquatech in 2016. In EJK, the RAI has found an equal partner with the same style of thinking and operating principles. At the end of 2016, EJK stated that its relationship with the RAI is unique among all its worldwide partnerships.
Big R/ReMaTecUSA International trade exhibition for the remanufacturing sector
ReMaTec is an international trade exhibition for the remanufacturing sector where specialists from the automotive and heavy duty industries come together to network and do business. The exhibition has a strong focus on innovation, education & knowledge development and, since 2014, has included a parallel edition in Las Vegas called the Big R/ReMaTecUSA, organised with trade
47
organisation APRA. ReMaTec aims to be an independent platform with high-quality exhibitors and visitors. The 2016 exhibition welcomed over 2,100 visitors. ReMaTec plans to expand into other sectors such as maritime, agriculture and air travel, which is why RAI Amsterdam sold it back to APRA in 2016.
WaterEx Beijing international exhibition on water technology
WaterEx Beijing was organised in the China National Convention Centre (CNCC) in Beijing in October. This three-day international exhibition on water technology has a special focus on the challenges in the sector, especially wastewater, drinking water and industrial water in and around Beijing. Over 15,500 visitors came to the show to view products and services presented by some 270 exhibitors.
ISSA/INTERCLEAN Istanbul exhibition for the cleaning sector moved to 2017
ISSA – the global trade association of the cleaning sector – and local partner UBM decided to postpone the exhibition ISSA/INTERCLEAN Istanbul, which had originally been planned for 7-9 September 2016, to 18-20 October 2017. After consultations, the organisers decided to move the event due to concerns among exhibitors and visitors about travelling to and from Turkey. ISSA/INTERCLEAN Istanbul is a partnership between RAI Amsterdam, ISSA and UBM EMEA.
48
Services RAI Amsterdam offers dedicated services to organisers, exhibitors and visitors.
know-how and services to
Organiser Services
make an event run smoothly
RAI Amsterdam provides know how and dedicated services which ensure that organisers’ events go as smoothly as possible. Our specialists provide advice and support to organisers on setting up the exhibition floor or preparing for their event. Expertise and networking are deployed to ensure they make the most of the opportunities provided by the Netherlands, the city of Amsterdam and RAI Amsterdam and facilitate a successful event. Solutions are also offered in the field of ICT, registration, logistics, audio-visual and media. We work with clients to help them achieve the best possible ROI.
RAI Amsterdam provides
Thanks to a unique partnership with the City of Amsterdam, RAI Amsterdam has made major steps
event-related licences directly
forward in the efficiency of our licensing procedures. RAI Amsterdam was the first private company in the Netherlands to be allowed to regulate and enforce various event-related licenses. This cooperation, now in its eighth year, has simplified and accelerated the license procedures.
Exhibitor Services RAI Amsterdam Exhibitor Services supports exhibitors in their preparations to make their participation a success. They can order products and services for their stands via a special Webshop, including ready-to-exhibit stands, hostess services, furniture, catering, flowers & plants, telecommunication & ICT facilities, parking tickets, and stand cleaning. There are now contracts in place with preferred suppliers.
Visitor Services RAI Amsterdam Visitor Services offers services to visitors designed to optimise their experience. This includes arranging hotels and transport, ensuring a warm welcome at the RAI Convention Centre (courtesy lounge, help desk, work and meeting places, etc.), catering and parking.
Catering catering: self-catered or in
Catering is an important pillar of all RAI Amsterdam events and we work both independently and in
partnership with specialist
partnership with specialist third parties. RAI Amsterdam remains responsible for quality control in
third parties
five restaurants
all cases.
RAI Amsterdam has five restaurants of its own: Grand CafĂŠ, First Floor Restaurant, Holland Restaurant, CafĂŠ Amsterdam and the Amtrium restaurant. These restaurants are opened when required for an event or conference. Moreover, there are two restaurants in the Convention Centre
49
which are operated by third parties: THE ROAST ROOM and Strandzuid. In addition to the restaurants there are various catering points in each complex which, during exhibitions and conferences, are operated by cafés and eateries such as La Place, Sunday’s, Sushi Time and various other concepts.
during large events the culinary team counts hundreds of cooks
Basement Chefs is the name of the RAI’s culinary team. The name was invented to motivate colleagues to become more involved in the things happening in and around the kitchen. The Basement Chefs operate at the nexus of underground corridors and cellars where RAI Amsterdam’s kitchens are located. From gala dinner to catering for a conference or exhibition, the RAI’s chefs have the facilities, logistical capacity and flexibility to turn any event into a gastronomic success. During large events there can be several hundred cooks active in the kitchen at a given time.
Heart-warming Amsterdam
With the ‘Heart-warming Amsterdam’ concept for its kitchens, RAI Amsterdam made a deliberate choice to work with regional products and remove vulnerable ingredients from its range. Where possible, the products have an added value for the region or society in general. Care farms for outings or education, small local farms, urban greenhouses and dairy farms in the region are seen both as suppliers and an important source of inspiration. This supports local producers, while offering the possibility to enjoy rare products grown in the region and dependent on the season.
Ketchup In the spring of 2016, the Basement Chefs received a phone call from their local partner Stadskwekerij Osdorp (which employs principally young people with addiction problems and occupational disabilities) asking if they were interested in a batch of Rooie Sien tomatoes. The insolvency of the department store chain V&D had left over large quantities of fresh ingredients intended for its La Place catering arm. The chefs instantly saw an opportunity and together with food guru Walter Abma developed their own food line of products such as ketchup, basil olive oil and red apple vinegar. These are all made with locally grown products and according to recipes with clear Dutch roots.
Hotel Services 128,893 overnight stays booked in 2016
The ability to attract large international events to Amsterdam is strongly dependent on the availability of sufficient hotel rooms at attractive prices set long in advance. The increase in the number of rooms available in recent years to 36,000, along with good cooperation with hotels and Amsterdam Schiphol Airport, places RAI Amsterdam in a much better position to meet this requirement from international organisers.
RAI Hotel Services is the largest accommodation intermediary in Amsterdam and the surrounding region, and takes care of hotel reservations as well as additional services, such as car rental, transfers, excursions and booking flights to and from Amsterdam for visitors of (mostly
50
international) events. In 2016, 31,133 reservations were processed, comprising 128,893 overnight stays. In 2015 this number was 166,000. The reduction in 2016 compared to the preceding year is due to the composition of international events.
I Amsterdam Approved
RAI Hotel Services only works with hotels that have the ‘I Amsterdam approved’ quality label. This is granted by Amsterdam Marketing to hotels that agree to reserve available rooms at a fixed rate for organisers, visitors and exhibitors during large city-wide events.
51
“The multi parking buil the RAI extra par and event 52
functional ding provides with 1.000 king spaces an extra area� 53
Facilities RAI Amsterdam’s strategy is aimed at the intensive and flexible use of RAI Amsterdam’s 23-hectare premises in order to create as many square metres of lettable space as possible. It offers the following facilities in the Convention Centre:
RAI Amsterdam Convention Centre facilities Features
Facilities
Total surface
112,200 m2
Congress centres
4
Halls
12 connected halls, option to extend with two semi-permanent halls
Rooms
2 auditoria, 1 large ballroom with 2,000 seats. 69 congress and meeting rooms. Space for 10 to 10,000 people per hall, with a total capacity of 250,000
Foyers en lounges
multifunctional spaces for expositions, parties and events
Entrances
9 separate entrances: 1 dedicated entrance for every event
Restaurants and bars
9 restaurants, bars and lounges, from buffet to à la carte
Parking garages
capacity of 4,000 places on the RAI premises
Harbour
dedicated marina with direct connection to Amsterdam’s canals
Train and metro stations
especially the Amsterdam RAI station, immediately adjacent to the Convention Centre
New build projects The ‘RAI Spatial Future Vision’ report stipulated that RAI Amsterdam could expand at its present location to include the following high-value additions: the RAI Amtrium (opened in June 2015), an extra multifunctional parking garage (opened in August 2016) and the on-site RAI Hotel (opening in mid-2019). RAI Amsterdam’s future vision focuses on sustainable development, the strengthening of its relationship with the adjacent Zuidas business district, the reinforcement of RAI Amsterdam’s international position and optimising the use of the RAI complex.
Multifunctional parking garage multifunctional aboveground
The expansion of the Zuidas business district over the past decade reduced the number of parking
parking garage opened with
places around the RAI complex. In response RAI Amsterdam had a new parking garage built with
1,000 parking places
1,000 parking places. This sustainable and multifunctional parking garage was (like the Atrium building) designed by Mels Crouwel of Benthem Crouwel Architects. It is situated on the motorway side of the RAI, between Halls 8 and 10. The additional 1,000 parking places have increased the total capacity of the RAI’s own premises to 4,000. This concentration strengthens the position of RAI Amsterdam by increasing customer satisfaction, streamlining circulation and reducing parking in the surrounding areas. The building came into use in August 2016.
54
What does multifunctional mean? The ceiling of the first floor of the building is high enough to double as an exhibition space (extension hall). With a surface area of 2,800 m², this hall enhances the exhibition capacity of the adjacent exhibition halls. Thanks to its height it can also be used as a buffer space for trucks during the setup and breakdown of events. In addition, the ceilings of the other parking decks are 3.60 metres high, which allows for the parking of vans and small lorries. This height will allow the parking building to be used for alternative purposes such as office space in the (very) long-term future. A pavilion can also be placed on the roof to generate more exhibtion space.
P+R facilities
RAI Amsterdam has served as a P+R function since January 2014, supporting the city in its aim to optimise traffic flows in and around Amsterdam. In February 2017 RAI Amsterdam welcomed the 100,000th P&R user. In the summer of 2018 the North/South metro line will be taken into use, making the RAI Amsterdam car parks even more attractive. The multifunctional parking building therefore also contributes to sustainability in the city of Amsterdam. The P+R facility is not available on or around dates that RAI Amsterdam is organising or facilitating events.
Strandzuid reopening in the spring of 2017, completely refurbished
The Strandzuid city beach will once again open its doors in the spring of 2017 with a completely refurbished locale. The wooden pavilions are being replaced by a single large complex east of the lake, which will accommodate the restaurant and various spaces for events. A new facility will have been completed on the RAI Harbour where visitors can come throughout the year to enjoy a coffee at the outdoor terrace, a three-course dinner in the restaurant or a meeting in one of the private spaces.
On-site hotel hotel in triangle between RAI complex, Europaboulevard and A10 motorway
RAI Amsterdam has long expressed a desire to build a four-star hotel on its own premises in order to accommodate conference participants and exhibition visitors. The Future Vision report expressed a preference for a location in the triangle between the RAI complex, Europaboulevard and the A10 ring road. This location is extremely favourable due to its proximity to the Amsterdam RAI train station (including a fast connection to Schiphol Airport), the metro stations and the exit/access to the A10. A hotel on this site with 650 rooms and parking facilities for around 200 cars will be a strategic addition to the core activities of RAI Amsterdam. Addressing the demand from the market, in which organisers of events and the main exhibitors, speakers and visitors stay at the same nearby hotel (‘headquarter hotel’), will further strengthen the international position of RAI Amsterdam. Construction officially started at the end of October 2016.
55
Amtrium Amtrium: new multifunctional building complex
RAI Amsterdam’s independently developed high-value, innovative, sustainable and multifunctional new Amtrium building was taken into use in 2015. Mels Crouwel of Benthem Crouwel Architects was responsible for the design of this third-generation venue with exhibition, conference, office and restaurant functions.
dynamic combined letting
There is a growing demand for locations in which conference options can be flexibly combined with, for example, an exhibition and/or a number of meeting rooms for breakout sessions or product presentations (dynamic combined lettable space concept). The Amtrium meets this demand by offering a fully functional conference centre with a reception lounge, conference halls (including a 520 m² hall, which can be split into two equally sized halls) and breakout rooms on the first floor. The second floor is ideal for uses such as small exhibitions, product presentations, poster sessions, receptions and dinners. The new building also provides a superb entrance and facilities to exhibition halls 4 and 5. Moreover, the building has a company restaurant on the second floor (which can also serve a commercial function during events) and the high-quality restaurant THE ROAST ROOM.
sustainable technologies
The most sustainable technologies have been applied during the development of the Amtrium. Blinds have been attached to the building’s exterior using special ribs, thermal energy storage has been installed, and solar panels have been fitted on the roof. The most eye-catching element of the Amtrium is its vertical greenhouse for urban farming.
BREEAM-NL (Excellent)
The Amtrium is the first conference centre in the Netherlands to fully comply with the most stringent sustainability standard: the 4-star BREEAM-NL New Building Design Certificate (Excellent). This is the highest possible standard of sustainability recognised by the Dutch Green Building Council.
THE ROAST ROOM THE ROAST ROOM, a restaurant housed in the Amtrium building, is Amsterdam’s unique meat experience. Surrounded by traditional craftsmanship and open kitchens equipped with Beech ovens and a rugged but classical interior, guests can enjoy the best steaks, burgers, meat cuts and sausages from the restaurant’s own butcher. THE ROAST ROOM consists of THE ROAST BAR, a brasserie-style restaurant on the ground floor, and the ROTISSERIE, a fine-dining restaurant on the first floor. THE ROAST ROOM was named the best meat restaurant in the Netherlands by the Restaurant Awards in February 2016.
56
Investing in sustainability cooling installation from gas to electricity
A major investment in the cost savings/CSR category initiated in 2014 involved the centralisation of the cooling installations in which absorption cooling using gas was replaced by centrifugal cooling with electricity. This made the cooling process ten times more efficient. While the installation of these cooling systems substantially reduced gas consumption and the CO2 footprint of RAI Amsterdam, it did result in a minimal increase in (green) electricity consumption. The first small cooling system (750 kWh) and a loop pipeline were installed in 2014. Two new larger cooling systems (4.5 MWh each) were installed and an existing electrical cooling (500 kWh) was taken back into use in 2015. All decentralised cooling systems will be removed. Locations that require cooling will be connected to the new distribution cooling network for the entire RAI complex.
emergency generators
A second major investment involved the centralisation of the emergency power supply. The
replaced: integrated solution
installations were replaced because the seven existing emergency generators had practically
with higher capacity
reached the end of their lifespan, and an expansion was needed due to the completion of the Amtrium. A central emergency system was installed, consisting of one large emergency generator linked to a cogeneration system and a smaller generator. This new solution enables RAI Amsterdam to generate power so that critical building functions and RAI Amsterdam’s offices can always continue to work, and even allows small events to have their entire energy requirements met (medium-sized events can be supplied with part of their needs). Furthermore, the emergency power supply returns electricity to the grid during peak periods.
green investments
No fewer than 1,632 solar panels fitted on the roof of Hall 8 were taken into use on 23 January 2014. These solar panels have a total installed capacity of 399,840 Watt peak (Wp), which equals around 360,000 kilowatt hours and a CO2 reduction of approximately 150 tonnes. Some 173 solar panels were installed on the Amtrium building in 2015. They have an output of 43,000 kWh a year and represent an annual CO2 reduction of 16 to 24 tonnes. This brought the total number of solar panels on the RAI Convention Centre to 1,805.
CO2 emissions halved by connection to district heating
RAI Amsterdam took a major step forward in terms of sustainability at the end of 2015 by expanding its connection to district heating. While the RAI formerly used both gas and waste heat for heating the halls, it has now switched almost entirely to environmentally friendly waste heat from the Nuon power plant in Diemen. The recently revamped district heating terminal has a capacity of 12,000 kW, which makes it Nuon's largest thermal connection in the Netherlands. The expansion of this renewable energy source has resulted in around 1,500 tonnes fewer CO2 emissions compared to the former gas boilers at RAI Amsterdam, or a 50% reduction. Furthermore, the use of fossil fuels has decreased by 95%.
57
Information and communication technology high-value ICT
High-value ICT facilities are an increasingly important factor in the success of an event and for sound business operations. The rapid growth of virtual applications on and around the exhibition floor, and the need for exhibitors, visitors and RAI staff to be connected 24/7, requires continuous attention. RAI Amsterdam therefore prioritises the renewal and further development of its ICT services and service provision, with an emphasis on three key areas: data, connectivity and indoor navigation.
opportunities from data analysis
RAI Amsterdam connects people. Our organisers, exhibitors, visitors and suppliers all require information while also generating a great deal of data themselves. Proper collection and deployment of this data can create significant added value for all those involved. Accurate information improves know-how, relevance and efficiency. Linking access data, stand visits, agendas, business dating & matching, indoor navigation, registration of interests and other information within a generic structure is a precondition for this. We worked on the technical and commercial aspects of this development in 2016.
connectivity: ICT fit for the future
RAI Amsterdam’s ICT is ‘fit for the future’ in terms of both technology and organisation. In 2015, all systems were migrated to a new environment. Important upgrades in the field of office automation were implemented in 2016.
indoor navigation
A new service currently under development is to offer an indoor navigation tool: an interactive map displaying the fastest route to, for example, a given stand or indoor restaurant. This service offers an extra dimension to the visitor experience at events and will be further perfected and applied in 2017.
3D LEGO® model of nhow Amsterdam RAI hotel unveiled NH Hotel Group and RAI Amsterdam presented a 3D LEGO® model of the future nhow Amsterdam RAI hotel during IMEX Frankfurt.
58
Strategy In 2015, RAI Amsterdam streamlined and reformulated its mission, strategy and brand. While the strategy and brand values described below were not changed in the reporting year, the manner of implementation was adapted. The decision was taken to further accelerate innovation, as is explained in the section Personnel and Organisation.
Mission Inspiring people
The mission of RAI Amsterdam is as follows: RAI Amsterdam brings people together, connecting and inspiring them by organising and facilitating meaningful encounters. In short, our driving force can be formulated as: 'inspiring people'.
RAI Amsterdam achieves this by developing communities, organising high-quality events and making use of a modern and sustainable conference venue in a prime location.
“Our driving force: 'inspiring people'� Strategy
increasing the value of meetings
RAI Amsterdam’s strategy can be summarised in a single sentence: we increase the value of encounters. To fully represent the breadth of the concept of meeting in all its aspects, RAI Amsterdam has formulated five supporting statements which are explained in the following pages.
59
Our strategy RAI Amsterdam’s strategy can be summarised as: we increase the value of encounters. To fully represent the breadth of the meeting concept in all its aspects, RAI Amsterdam has formulated five supporting statements which are explained below. We increase the value of encounters...
...in terms of quality and quantity RAI Amsterdam does not only focus on the number of visitors and meetings, but also (naturally) on their quality as well. Visitor and customer satisfaction are decisive for the success of our activities and regularly surveyed.
...in the physical and virtual worlds RAI Amsterdam does not just organise the physical encounters in a conference centre, but also virtual meetings in online communities. Creating a platform which inspires visitors and lets them maintain a dialogue both before and after the exhibition further boosts the value of an event to visitors. Interested parties who cannot take part in an event physically can follow parts on the event website instead.
...at the event location and elsewhere The contacts in the communities which arise around an event are not limited to the location of the event. Even in faraway corners of the globe, RAI Amsterdam brings people together to share knowledge regarding specific exhibitions and the disciplines in which they operate. These contacts increase the visitors’ networks and their interest for the event.
… in revenues and costs This dimension has been added by RAI Amsterdam to emphasise its structural focus on how things can be approached in a more efficient way and costs can be cut, for our organisers, our exhibitors and ourselves.
… during events and throughout the year Visitors to an exhibition or conference also increasingly meet each other outside the period in which the event takes place, RAI Amsterdam aims to provide added value for the target groups of its exhibitions throughout the year. The internet portal of each exhibition and the activities organised through it can extend the usefulness of an event in time and can even become a permanent medium for added value.
60
Our brand values RAI Amsterdam has the following six brand values.
Involved RAI Amsterdam is embedded in the
Hospitable At RAI Amsterdam you will be received
Customer-oriented RAI Amsterdam appreciates who you are
community, committed to sustainability and takes seriously its responsibility towards people, our city and the world.
personally, professionally and, above all, with a warm welcome. Our doors are always open, whoever you may be and
and what you need. Any challenges are dealt with as smoothly as possible. Whether you are an organiser, exhibitor or
The passion and emotional involvement of our employees and all the other
whatever drives you. RAI Amsterdam is for everyone. Whether joining us at our
visitor, we aim to respond to your needs before you even ask. We gladly offer you a
stakeholders determine our success. We ensure that everyone is heard and feels connected.
convention centre in Amsterdam or at one of our events elsewhere in the world, or taking part via virtual channels, you will
complete solution. We think along with you, look ahead and are dedicated to being of service so that you feel supported.
feel welcome at RAI Amsterdam.
r 2017: increasing the value of enc egy fo ount strat ersI I A R
hospitality
I feel
welcome
supported
involved
customeroriented
professional
innovative
And that gives me
peace of mind
In f so rm te
operational excellence
qu al ity an dq ua nti ty
I feel
hospitable
connected
And that helps me
enterprising
get ahead
be st RO I
I feel
solutions
virtual
And that ensures me
th e
sustainable
success
–o ns ite and o˜
international – in t he phys ical and virtual worlds
e th ut ho g ou thr nd ts a n e v ge – durin
Professional An agreement is an agreement. RAI
Enterprising The quality of our location, concepts,
Amsterdam understands like no other that
products, facilities, services and people
the quality of an event depends on solid preparation and sticking to agreements. Our goals are ambitious yet realistic.
ensures that you encounter all the elements of success at RAI Amsterdam. You can rely on an enterprising
Forecasts and commitments are based on a responsible realisation. We carefully manage expectations and offer you peace
organisation that has the experience required to create the ideal conditions for achieving maximum added value for every
of mind.
customer. RAI is ready to make the most of every opportunity, thinks along with you, offers its partnership and actively 61 contributes to your success.
– ar ye
r fo
Innovative RAI Amsterdam is a stage for creativity and innovation. Through our concepts, products and services, RAI Amsterdam ignites new ideas. In a modern and innovative setting, we enhance the experience of your physical or virtual presence. We can push the window of innovation in a significant way because our applications are widely applicable. This ensures that you get ahead.
Personnel and organisation RAI Amsterdam is a company for people, by people. We are able to ensure the highest standard of hospitality because of the synergy between the talents and energy of our employees and our company’s objectives. By creating and maintaining an inspiring environment and by providing employees with challenges and responsibility, RAI Amsterdam meticulously realises both its commercial goals and social ambition. RAI Amsterdam deploys a sustainable HR policy designed to improve the wellbeing, vitality and lifestyle of its staff.
Employee satisfaction general satisfaction: 8.2;
The two-yearly employee satisfaction survey took place in November 2016. By analysing the
survey in 2016 confirms
satisfaction of all its employees, RAI Amsterdam aims to identify major improvement areas and
upward trend
learn more about the effects of its HR policy. At 7.9, the RAI’s general score among staff was already high in 2014. In 2016, it increased even further to 8.2. Opinions about other topics such as 'activities', 'colleagues' and 'management’ were also the same as or better than in 2014. The statement ‘I am satisfied by the way RAI Amsterdam is organised’ received a mark of 5.9 in 2016. This topic was the subject of hard work in the recent past, in terms of both culture and structure, and RAI Amsterdam is seeing its efforts pay off. The amount of work was experienced as positive by 71% of the employees in 2016, compared to 62% in 2014. The response rate was 80%, which was higher than in 2014.
Flexible work, constant quality tender for flexible workers package successfully finished
In 2016, RAI Amsterdam completed a tender for the acquisition of the flexible workers package for the period 2016-2019, with an option to extend by two years. To optimise cooperation and ensure an even better partnership, the tender specified a smaller group of temporary staff than in the past. RAI Amsterdam strives to have at its disposal a fixed pool of first-class temps. In this context, everything is set up so as to create the highest possible added value for customers & visitors, for RAI Amsterdam and for the employees themselves. A high degree of flexibility is necessary for RAI Amsterdam to be able to adapt its workforce to events, and the quality of the various teams must continuously be at a high level.
Organisational structure changes to culture and structure
The new Executive Board assumed its responsibilities in early April 2016. After taking the time to get to know the organisation of the RAI and all its stakeholders, and after presenting a sixty-day plan, they began a transformation process in the summer of 2016. For the company to be able to innovate successfully and sufficiently in the long term, it is necessary to adapt its culture; this is being achieved through a change in structure. A number of plenary sessions organised during the culture change process established rules for how the various stakeholders should interact. The management team also started work on improving dialogue among the groups. The structural change process rested upon the following guiding principles:
62
RAI Amsterdam is a company: with a core business that ranges from organising to facilitating; that strives for more synergy, less control and more space; that is organised around three main processes: event, management and innovation. The event teams and processes are leading, and departments are acknowledged as specialists responsible for their own development and innovation. The staff provides support to these main processes.
changes at the top
The sessions led to an adaptation of the RAI’s executive structure, which came into force on 1 April 2017. The CEO and COO oversee a management team consisting of directors/managers from the key fields of Finance, HR, ICT, Legal, Hospitality and Venue (reporting only to the CEO) and Marketing & Digital, Commercial, Clients and Operations (reporting to the COO).
works council responded positively
At the end of December the Executive Board submitted a request for advice to the works council regarding changes to the executive structure. The works council responded positively to the proposals in February 2017 and, after a number of new appointments to the management team, a start has been made with developing the new processes and division of tasks.
Vitality initiating, facilitating and
RAI Amsterdam promotes the vitality of its employees so that they can all be fit, energetic and
promoting vitality campaigns
healthy at work. With this in mind, the programme ‘RAI Vitaal’ was designed in 2015 to initiate, facilitate and promote vitality campaigns among employees. A variety of possibilities were offered within this framework in 2016, which help employees in the field of health & fitness, work enjoyment & work-life balance, and stress & absenteeism prevention.
Diversity diverse teams; target for
RAI Amsterdam strives to ensure the diversity of its departments in terms of age, experience,
Talent to the Top charter
gender and competencies. RAI Amsterdam is convinced that diverse teams also have a positive
achieved
influence on results. With 51% women and 49% men, RAI Amsterdam has a balanced staff. The objective in the field of gender diversity as described in the Talent to the Top charter has been amply achieved: the share of women in the group directors and executive key personnel is 35%.
63
Personnel composition Below are some cross-sections of the composition of personnel at RAI Amsterdam.
Personnel At the end of the year
EMPLOYEES
2016
2015
Male
185
46%
185
46%
Female
219
54%
221
54%
Total
404
100%
406
100%
FTE
Male
182.3
49%
182.7
49%
Female
188.4
51%
190.9
51%
Total
370.7
100%
373.6
100%
Personnel by age Percentage / FTE (at the end of the year)
2016
2015
BY AGE
2%
3%
26 to 35
26%
30%
36 to 45
35%
33%
46 to 55
25%
22%
56+
12%
12%
100%
100%
25 and under
Total
64
Personnel by discipline Percentage / FTE (at the end of the year)
2016
2015
BY DISCIPLINE
Commercial
51%
50%
Operational
36%
40%
Financial/staff
13%
10%
100%
100%
Total
Absence due to illness
further decrease, to 2.9%
Absence due to illness is an important variable for RAI Amsterdam. The figure for the reporting year was 2.9%, representing a decrease from the already low figure of 3.2% in 2015.
Absence due to illness Percentage
2016
Total
2015
2.9%
3.2%
Social engagement more opportunities for youthful
The HR policy related to social engagement reflects an aim to create more social return for the city
unemployed and young
of Amsterdam. In the reporting year, RAI Amsterdam cooperated in various important initiatives in
people with occupational
the field of creating better opportunities for unemployed youth (work agreement for tackling youth
disabilities
unemployment) and young people with occupational disabilities.
RAI and young people with occupational disabilities
RAI Amsterdam has been active as a recognised work training company for people with disabilities since October 2015. It is the first exhibition and conference organisation in the Netherlands to give people with disabilities the opportunity to learn and gain work experience within the framework of the Dutch Participation Act. This allows RAI Amsterdam to contribute to the agreement between industry and the Dutch government to create a total of 125,000 extra jobs for people with disabilities by 2026.
To find places for young people with disabilities, RAI Amsterdam has had a close cooperation with the Employee Insurance Administration (UWV), the ROC College in Amsterdam and WSP Groot-Amsterdam since 2015. The youngsters work three days a week and go to school one day a week to be trained as ‘hospitality and service employees’ based on an internal
65
company training course custom-made for RAI Amsterdam by ROC Amsterdam. The trainees are supported by a job coach, and a work supervisor from the department in which they are active.
RAI Amsterdam aims to use the experiences from this project to provide suitable work opportunities for the target group of the Participation Act on a structural basis in the future.
On 13 January 2016, seven members of the trainee programme received their work contract for a trial placement with RAI Amsterdam. Five of them successfully completed the process and two are now in the temp pool. In October 2016, RAI Amsterdam started with a new class of eleven people, eight of which are still in place.
hiring workers above fifty and participation in campaign
In 2016, RAI Amsterdam participated in a campaign aimed at encouraging employers to hire more people above fifty years of age. The RAI’s HR manager Mr Broex shared his experiences in a commercial and praised the campaign. RAI Amsterdam has received many positive reactions about this initiative, both for its hiring of people from this target group and for acting as an ambassador with respect to other companies.
charity
RAI Amsterdam’s and its employees’ social involvement are also illustrated by the charities they support. Our dedicated Sustainability Report describes the charities and the activities carried out on their behalf.
Safety & security safety & security board
RAI Amsterdam has a Safety & Security Board which monitors the company’s Health, Safety & Security policy. The policy details the safety measures and facilities which support the continuity of business activities while maintaining hospitality, and representing the interests of RAI Amsterdam, staff, clients, suppliers and visitors in the broadest possible sense.
cyber security awareness
The Executive Board commissioned a specialised agency to carry out an audit of external digital access possibilities. The results of the audit prompted an awareness campaign to improve access safety, including password use.
Top Employer Top Employer since 2015; certification received again for 2017
RAI Amsterdam was declared a Top Employer in February 2015 and again received the certification for the relevant year in February 2016 and 2017. This was preceded by an extensive assessment of the company’s HR policy. Special attention was given to the extent to which HR policy is respected in practice.
certification for good working
RAI Amsterdam has been objectively assessed and certified as a ‘Top Employer’. In concrete
environment and corporate
terms, this means that current and future employees can expect plenty of room for personal and
culture confirmed
professional development within the company. It also shows that RAI Amsterdam offers a quality
66
environment and company culture where people can enjoy their work and be effective at both a professional and personal level.
‘Virtual’ competence improving knowledge of
To train its employees, the RAI set up a ‘virtual campus’ in 2016 with a focus on knowledge in the
connectivity, hardware,
fields of connectivity, hardware, internet, productivity and cooperation. A baseline measurement in
internet, productivity and cooperation
the form of a scan for skills defined the training courses offered to each employee. At the turn of the year 2016-2017, all employees received a certificate with their final level. This represented an important step in the development of ‘virtual’ competence both for the personnel and for the RAI as an employer.
Cooperation with the RAI works council frequent and constructive
There was frequent and constructive dialogue between the works council and management during
dialogue
2016. Subjects discussed included the financial results, construction developments, the employee satisfaction survey, consent requests and working conditions. In addition to these formal consultations, the dialogue continued in a number of subcommittees, such as the HRM Committee, the Financial Committee, the Working Conditions Committee, the Terms of Employment Committee, the Pensions Committee and the Temps Committee. A sounding board group set up by the works council for both permanent employees and temporary staff also discussed a wide range of topics. Other important subjects of discussion in 2016 were the cooperation agreement with temp suppliers, the culture and structure change process started during the second half of the year, and the pensions of RAI personnel. RAI Amsterdam signed a five-year pension implementation agreement with Delta Lloyd in 2013 on an average-pay scheme. Given that the agreement ends in late 2017, the reporting year saw several conversations take place regarding awareness of pension accrual among employees and possible choices for the future.
New clothing range designer clothing for RAI personnel by Liselore Frowijn
The young Dutch designer Liselore Frowijn has designed RAI Amsterdam’s new clothing range. Frowijn was recommended to the RAI by designer Frans Molenaar, making this the last collection he ever supervised. The employees received new outfits which exude the same allure as the company: hospitality, professionalism and constant readiness to help and receive guests from all over the world. The clothing range was presented in April 2016 during a fashion show in the RAI Amtrium.
67
Employees on screen Six short videos were produced to demonstrate the multifaceted nature of work at RAI Amsterdam. These can be viewed on the RAI YouTube channel https://www.youtube.com/user/amsterdamrai.
68
69
Shareholder equity and loan capital In 2016, the Municipality of Amsterdam decided to start selling its partial interest in RAI Amsterdam.
Because the results in the 2013 to 2016 period were considerably higher than indicated by the policy outline memorandum 2013-2018, RAI Amsterdam established a one-off interim dividend over 2015 in the reporting year, amounting to €1.6 million.
RAI Amsterdam established the dividend to be paid over 2016 in accordance with the dividend policy 2013-2018, and it amounted to €2.284 million.
During the reporting year, the financing scheme was expanded with a facility of US$ 6 million. In 2016, financing took place within the scheme as established with Deutsche Bank and Rabobank Amsterdam in 2013.
Partial interest of Municipality of Amsterdam Municipality of Amsterdam decides to start selling its 25% share
In 2016 the Municipality of Amsterdam, which owns 25% of the shares in RAI Amsterdam, decided to start selling its partial interest to a third party under specific conditions. These conditions aim to guarantee the continuity of RAI Amsterdam and the cooperation between the Municipality of Amsterdam and the RAI with regard to the acquisition of international conferences, accessibility and the organisation of events. RAI Amsterdam makes an important contribution to the city and region, and it is in the public interest to safeguard this contribution during and after the selling process. The Municipality of Amsterdam has been a shareholder in RAI Amsterdam for over 60 years, originally based on an economic background. To underline the relevance of the RAI, research in 2015 showed that the presence of RAI Amsterdam provides a footprint of 7,000 fulltime jobs in the region.
Realising stakeholder goals RAI Amsterdam combines its financial and social objectives and attempts to unite the interests of stakeholders with the aims of the company itself for long term continuity. The starting point for the formulation of the business model is therefore to create a proper, long-term balance between pros and cons for all parties, in which on balance the RAI offers added value for everyone. RAI Amsterdam therefore applies the following two goals:
value for stakeholders
1. Creating shareholder value by maximising a durable financial result, in combination with reaching the financial result in the short term and in conformity with the annual budget, with an EBITDA greater than 15% and a minimum net result of €3 million.
value for society
2. Creating as much economic spin-off as possible for the city and region from which RAI Amsterdam receives its ‘licence to operate’.
If the (projected) net annual results are below €3 million, realising the shareholder value takes precedence. In all other cases the goal is to create a balance between the two starting points.
70
Dividend Dividend policy €2.24 million per year to be indexed
A new dividend policy for the years 2013-2018 was established in early 2014. RAI Holding B.V. will pay its shareholders a fixed dividend of €2.24 million a year (price level 2014; annual revaluation will be based on the consumer price index determined by Statistics Netherlands).
maximisation, carry-forward
According to this policy, dividends paid out in a single year will never exceed the net result in that year. If a dividend cannot be paid out in accordance with the policy formulated above due to an insufficient net result, the shortfall will be added to next year’s dividend inasmuch as the net result in that year allows for it. The cumulative dividend owed over previous accounting years will never exceed the (indexed) fixed dividend of the latest accounting year for which a dividend should have been paid.
consultation if result differs
If the net result differs structurally and considerably from the basic scenario determined in the
considerably
policy outline memorandum 2013 -2018, the Executive Board will initiate discussions with the shareholders to review whether the dividend policy should be revised.
compulsory dividend test can lead to reduction of dividend payments
Before a decision regarding dividend payments in a given year is made, a dividend payment test will be carried out in accordance with the law by the Executive Board and Supervisory Board of RAI Holding B.V. If this test has a negative result, only partial or no dividend payments will be made in the given year, after which the carry-forward will come into force.
Interim dividend one-time interim dividend of €1.6 million for 2015
As the operating results from 2013 to 2015 were higher than expected in the policy outline memorandum, a decision was made in 2016 to pay a one-time interim dividend for the year 2015 to the amount of €1.6 million, to be disbursed in two equal instalments no later than September 2016 and 2017, respectively. While the dividend decision was being made, both shareholders confirmed that the arrangements made in the dividend policy would apply for the years 2016-2018, and any future structural deviation from the scope indicated in the policy outline memorandum for 20132018 would be ascertained based exclusively on results from the year 2016 and later.
Financing scheme equal club deal, ratio determined via intercreditor agreement
RAI Amsterdam entered a club deal for financing with Deutsche Bank and Rabobank Amsterdam in 2013. The banks participated on equal terms in the new financing scheme; the new bank financing is founded on two identical credit agreements with these banks, with the exact same rates, covenants and standard conditions. The ratio between the two banks is decided by means of an intercreditor agreement.
three facilities: long-term loan and current account credits
A long-term loan agreement for €26 million has been made with each bank, along with an agreement for a current account facility of €15 million (each). In 2016 this was complemented with an additional credit facility of US$3.35 million in connection with the acquisition of a stake in IBEX
71
(International Boatbuilders Exhibition and Conference). The overview below shows the features of the facilities.
Financing scheme Facility A (€)
Facility B (€)
Facility C (US$)
• long-term loan
• current account credit of €30 million
• current account credit of €6.7 million
• principal amount decreased to €52
• end in 2020
• rate: 1M Libor +1.30% surcharge
million
• increase 2017 + €2.5 million
• facility fee 0.25% over unused portion
• end in 2020
• reduction 2018 - €2.5 million
• repayment:
• rate: 1M Euribor +1.00% surcharge
- 2016/2017: none
• facility fee: 0.25% per year
- from 2018: €4 million per year • rate: 3M Euribor +1.70% surcharge
interest swap: interest fixed at
An interest swap agreement was concluded with the Rabobank and Deutsche Bank in late 2013.
3.24%
Based on this, RAI Amsterdam pays interest of 1.54% over Facility A, with a surcharge of 1.70%. On balance, this means that RAI Amsterdam is financed at a fixed interest of 3.24% up until and including 2020.
Financial covenants and conditions The following table provides an overview of the financial covenants. The second table shows the conditions and securities linked to the financing.
Finance arrangement Convenant
2016
2017
2018
2019
2020
<4,5
<4,5
<4,0
<3,5
<3,0
solvency
>30%
>30%
>30%
>30%
>30%
EBITDA € 1 million*
>17,5
>17,5
>17,5
>17,5
>17,5
senior Next Debt/ EBITDA
*Reviewed annually. Reference date 31 December
72
Financing conditions Conditions and securities
Conditions
Securities
• No expansion of loan capital
• Mortgage on existing and new real estate
• Change of Ownership • Biennial reassessment of RAI buildings • Max. Capex 12 million per year (excl. new construction) • Max. dividend up to net profit in financial year • Max. on intercompany loans against minority participations • Insight over top 10 events/occupancy rate
Credit agreement for solar panels credit agreement for solar panels with Amsterdam investment fund
In 2014 RAI Amsterdam concluded a credit agreement with the Amsterdam Investment Fund of the Municipality of Amsterdam for the financing of solar panels. The credit agreement consists of a loan of €0.1 million for the period until 5 March 2029. The loan will be repaid at the latest by 5 March 2029 and the interest rate is 0%.
credit agreement for solar
In 2014 RAI Amsterdam also concluded a credit agreement with the Triodos Bank for the financing
panels with Triodos Bank
of solar panels. It consists of a loan of €0.29 million for the period until 1 January 2034. The loan is being repaid in 79 quarterly terms, starting 1 July 2015. The interest rate is 3.5% on an annual basis for the period until 17 January 2026.
73
Order portfolio (at the end of 2016)* * based on RAI Amsterdamâ&#x20AC;&#x2122;s own events and reserved events/options for events by third parties.
74
71%
2021
2020
86% 89%
2019
93%
2018
2017
96%
Prospects The economy is picking up. International professional exhibitions and conferences are clearly growing. The revitalisation and development of national consumer events remains a challenge, although a positive trend has emerged here too in 2016. On balance, the future outlook for RAI Amsterdam is improving, and the expectations for 2017 are moderately positive. The RAI has a full portfolio of events, even though it still struggles to make up for the added value lost with the recent cancellations of AutoRAI and BedrijfsautoRAI. This is why the development of new events is a priority. RAI Amsterdam has a modern convention complex that is highly accessible from the city centre and the airport â&#x20AC;&#x201C; and will be even more so once the North/South line of the Amsterdam metro opens in mid-2018. The RAI also benefits from its dedicated team of motivated employees, who are called upon to maintain their hospitality work at the same high level while also focusing on innovation.
Order portfolio positive expectations for the coming five years
The turnover forecast based on incoming orders gives an indication of what can be expected from RAI Amsterdamâ&#x20AC;&#x2122;s commercial performance. A forecast of direct and indirect turnover based on contracted options and reservations predicts stability over the coming five years, especially thanks to the growth of international events. The incoming orders are shown in the adjacent figure.
Events wide range of exhibitions and conferences
2017 is expected to be a busy year, with RAI Amsterdam facilitating a wide range of exhibitions and conferences for external organisers. The RAI will also put on 22 events of its own, ten of which in Amsterdam, as shown in the overview below.
Own events in 2017 In Amsterdam
Abroad
Horecava
ISSA/INTERCLEAN North America
Huishoudbeurs
ISSA/INTERCLEAN Latin America
HISWA
ISSA/INTERCLEAN Istanbul
FunSport Experience
Intertraffic Istanbul
Aquatech
Intertraffic China
FloodEx
Intertraffic Mexico
MobiliteitsRAI
Aquatech China
Amsterdam Security
Aquatech Mexico
ReMaTec
FlowTech China
The METSTRADE Show, including the SuperYacht Pavilion
WaterEx Beijing
(SYP) and Marina & Yard Pavilion (MYP)
GD Water China
IBEX USA
75
National exhibitions recovery expected to continue
For the national exhibitions (both trade and consumer shows), RAI Amsterdam expects a stabilisation and, for certain titles, modest growth in turnover and visitor numbers. The lean years of the recession seem to be a thing of the past for the sectors serviced by the RAI. This picture is confirmed by key benchmarks such as Horecava, vt wonen&design beurs and Masters of LXRY.
International exhibitions growth in number and size
While the national events are recovering thanks to the improving economic outlook, it seems clear that international shows will continue to grow as they have in the recent past. RAI Amsterdam is benefitting from the strength of its own exhibitions as well as major events by other organisers such as the IBC (International Broadcasting Convention), ISE (Integrated Systems Europe) and PLMA's World of Private Label. The growth of the RAIâ&#x20AC;&#x2122;s own spin-off titles abroad will also have a positive effect on the bottom line. The IBEX Show, the maritime exhibition in which RAI Amsterdam acquired a share in 2016 via participation in the parent company, will take place in 2017. ISSA/INTERCLEAN in Istanbul, which was originally planned for September 2016 and was postponed due to concerns among exhibitors and visitors regarding unrest in Turkey, will instead be held in October 2017. Just like in 2016, the acquisition of new events will stay high on the RAIâ&#x20AC;&#x2122;s agenda.
New events by third parties in 2017 new events by external organisers
A range of new events by third party organisers are planned for 2017. The RAI Amsterdam Convention Centre will host the following events, among others:
76
New events 2017 by external organisers
International Conference on Magnet Technology 2017 15th European Congress of Psychology 2017 European Wound Management Association Congress EWMA 2017 European Academy of Neurology Congress 2017 WindEurope 2017 Conference & Exhibition 29th European Congress of Pathology ECCO2017 The International Liver Congress 2017 Microsoft Tech Summit SAP Insider 2017 Salesforce Worldtour Amsterdam FY 18 HR Tech World Congress 2017 International Rental Exhibition 2017 33rd European PV Solar Energy Conference and Exhibition Meteorological Technology World Expo 2017 Carwash Show Europe 2017 PRSE – Plastics Recycling Show Europe 2017 Apex 2017 TOC Europe 2017 Electric and Hybrid Marine World Expo / Marine Maintenance World Expo Intermodal 2017 Passenger Terminal Expo 2017 European Utility Week 2017 SKILLS The Finals VidCon Europe 2017 Congres Nederlands Huisartsengenootschap 2017 Comic Con Amsterdam 2017
Real estate developments Strandzuid reopens in the spring of 2017
Strandzuid will reopen in the spring of 2017. The familiar ambiance of the lounge, café, bar and restaurant will return in an exciting new concept, with a cosy atmosphere again being experienced in RAI Harbour both during events and on other days.
nhow Amsterdam RAI hotel
The nhow Amsterdam RAI hotel will become more tangible in 2017. The foundation work will be
takes shape
completed and construction of the floors will begin, making the landmark – which will eventually have a record height – clearly visible from afar for the first time.
customer wishes as input for
RAI Amsterdam will continue to work on its master plan for 2030. The functional aspects of the
future vision and master plan
Convention Centre will be reassessed based on a market analysis which has already been
for 2030
initiated. RAI Amsterdam will also take into account the wishes of its most important customers in its future vision for further development of the venue.
77
convenient location of convention centre further reinforced by new metro line
Insofar as is known, the North/South metro line â&#x20AC;&#x201C; the new metro line that will connect RAI Amsterdam to the heart of the city and Central Station â&#x20AC;&#x201C; will be opened in mid-2018. It will bring visitors to and from the city centre and Central Station in under ten minutes. Although Amsterdam is relatively compact compared to other European cities, this exceptionally short travel time will contribute further to the attractiveness of the RAI Amsterdam Convention Centre, including for shorter international events.
Investments RAI Amsterdam expects to invest nine million euros in 2017. It is presumed that none of this will have to come from outside financing. The interest is fixed by means of swap contracts.
Strategy focus on innovation
RAI Amsterdamâ&#x20AC;&#x2122;s strategy will be updated in 2017. While its fundamentals will remain the same, the priorities will change. Strengthening and accelerating innovation and developing new events will become more important and the RAI expects to make progress in fields such as ICT & Big data, wayfinding and connectivity.
Culture and organisation new perspective, same goal: inspiring people
The size of the workforce is expected to remain more or less unchanged in 2017. The projects started in 2016 for further improvement of the corporate culture and organisational structure will continue. While the initiative belonged largely to the management in 2016, early 2017 saw various departments and groups begin to evaluate and improve company-wide processes from a new perspective. This is an integral new way to look at the goal pursued by RAI Amsterdam for more than a hundred years: inspiring our visitors and customers.
78
In conclusion inspiration and trust
The Executive Board would like to thank all stakeholders for their efforts and commitment. We extend our special gratitude to the employees, whose hospitality and professionalism have been essential for our mission to facilitate successful encounters and largely made last yearâ&#x20AC;&#x2122;s successes possible. The Executive Board is also pleased to see the very high levels of satisfaction in the employee survey â&#x20AC;&#x201C; and the pride our people have in their work is clearly reflected in the organisational structure, bottom line and customer satisfaction. As a new executive team, we feel inspired to ensure continued success in the coming years and are confident that RAI Amsterdam has a bright future ahead.
Amsterdam, 16 March 2017
Executive Board of RAI Holding B.V.
Paul Riemens, CEO Maurits van der Sluis, COO
79
#04
Governance and risk management
80
Corporate governance RAI Holding B.V. is a private limited company in accordance with Dutch law. Shares in the company are held by the RAI Association and the City of Amsterdam. The governance structure is based on Book 2 of the Dutch Civil Code, the statutes of RAI Holding B.V. and various internal regulations. The governance structure of RAI Holding B.V. includes a general meeting, Supervisory Board, Executive Board and works council.
Legal structure RAI Holding B.V. and its group companies
RAI Holding B.V. is a holding company. The companies that are part of RAI Holding B.V. are listed in the ‘General’ section of the Financial Statement under ‘Principles of consolidation’. Wherever this annual report states ‘RAI Amsterdam’ it refers to RAI Holding B.V. and all its group companies. Group companies are participations in which RAI Holding B.V. plays a policy-deciding role.
Statutes name change; modified statutes published on website
The most recent statutes of RAI Holding B.V. are dated 18 July 2008. The latest statutes of subsidiary RAI Amsterdam B.V. are dated 2 June 2015. The modification of the statutes in the financial year was related to the change from Amsterdam RAI B.V. to RAI Amsterdam B.V.
Corporate Governance code code fully recognised and
The Executive Board and Supervisory Board recognise the Dutch Corporate Governance code as
applied where applicable
determined by the Corporate Governance Code Monitoring Committee in 2008 and implemented on 1 January 2009. They apply the principles and best practice definitions therein, insofar as they apply to RAI Holding B.V. In some cases the principles and best practice definitions do not apply because RAI Holding B.V. is not quoted on the stock exchange and only has two shareholders.
Nonetheless, the code is fully recognised and applied where applicable. Any substantial change to the corporate governance structure of RAI Holding B.V. and compliance with the code will be presented to the General Meeting as a separate agenda item.
'not applied'
The following recommendations from the code are not applied (in full):
Publication of notes on general remuneration on website The provision that the written notes with a proposal for the approval or authorisation by the General Meeting be placed on the company’s website has not been applied due to the fact that the company only has two shareholders;
Publication of policy for bilateral contacts with the shareholders on website The provision that the company formulate an outline policy regarding bilateral contacts with the shareholders and publish this policy on the website has not been applied due to the fact that the company only has two shareholders.
81
Governance of Supervisory Board Supervisory Board regulations detail application of Dutch Corporate Governance Code
The Supervisory Board regulations were re-determined on 22 September 2015. They are based on Article 16, section 4 of the company statutes and serve as a supplement to the regulations and instructions that apply to the Supervisory Board in accordance with Dutch legislation and company statutes. The task division of the Supervisory Board and its working methods are included in the regulations. The Supervisory Board regulations are published on the website of RAI Amsterdam (www.rai.nl).
Supervisory Board tasks supervising and realising employer and consultancy role
The task of the Supervisory Board is supervising the policy of the Executive Board and the general course of affairs within the company and the associated companies. In addition, the Supervisory Board acts as employer to the Executive Board and assists it with advice. In fulfilling its duties, the Supervisory Board is focused on the interests of the company and the associated companies, taking into account the relevant interests of all those involved in the company. The Supervisory Board is also responsible for the quality of its own activities.
Size and composition five members, three four-year terms at most
RAI Amsterdam has a Supervisory Board consisting of five people. Members of the Supervisory Board can be appointed for a maximum of three consecutive terms of four years each. A member must leave the Board at the latest on the occasion of the first general meeting after his or her last term has ended.
profile and composition
The profile is related to the composition of the Supervisory Board. It is discussed at the general meeting and with the works council whenever there are any changes. The profile is published on the website of RAI Amsterdam (www.rai.nl).
independent and critical
The Supervisory Board is composed in such a way that, in accordance with the governance code,
functioning
its members can function independently and critically with regard to other members, the Executive Board and any other partial interest. Each Supervisory Board member should be able to evaluate the outlines of the total policy. Additionally, all members have a specific expertise and related competences required for fulfilling their duties. The Supervisory Board aims to be composed in such a way that continuity is guaranteed and membership well-balanced with regard to the age, experience and male/female ratio.
82
Committees three committees
As the Supervisory Board in its complete configuration has more than four members, there are three core committees (in accordance with the regulations), namely an Audit Committee, Remuneration Committee and Selection and Appointment Committee. The committees are established and composed by the Supervisory Board. The (full) Supervisory Board remains responsible for all decisions, whether or not they were prepared by one of the committees. The regulations of the committees are published on the website of RAI Amsterdam (www.rai.nl). The composition of the committees is indicated in the Statement of the Supervisory Board, under â&#x20AC;&#x2DC;Committee reportsâ&#x20AC;&#x2122;.
Step-down roster maximum of three four-year terms
The step-down roster was determined based on Article 6, section 2 of the Supervisory Board regulations. A Supervisory Board member will step down at the latest at the first General Meeting held four years since his or her last (re)appointment as Supervisory Board member. The roster is included below and continuously published on the RAI Amsterdam website (www.rai.nl).
Step-down roster Maximum of three terms
Name
Date of first
Current
Upcoming proposal for
Final date for stepping
appointment
term
stepping down or
down: first General
(re)appointment: first
Meeting after:
General Meeting after:
R.H. (Roelf) de Boer
23/04/2015
1st
23/04/2019
23/04/2027
A.M.H. (Annemarie) van Gaal
15/09/2015
1st
15/09/2019
15/09/2027
J.W.Th. (John) van der Steen
07/04/2011
2nd
07/04/2019
07/04/2023
vacancy 1
vacancy 2
Training course introductory programme for new Supervisory Board members
After appointment, every member of the Supervisory Board follows an introductory programme developed and financed by RAI Amsterdam which focuses on general financial and legal affairs, financial reporting by the company, specific aspects of RAI Amsterdam and its business activities, and the responsibilities of the Supervisory Board.
supplementary education and training
Once a year, the Supervisory Board also discusses any desirable/required (additional) education during the terms of the individual members.
Conflict of interests See notice in the statement from the Supervisory Board.
83
Remuneration no personal loans and/or
The Supervisory Board members were not provided with shares and/or options or similar rights for
securities provided to
obtaining shares in the capital of the company, nor did they acquire any loans and/or securities.
Supervisory Board members
The remuneration is described in the financial statement under â&#x20AC;&#x2DC;information on the consolidated financial statement.
Executive Board governance Executive Board regulations supplement Dutch Corporate Governance Code
The regulations for the Executive Board were last changed on 25 June 2014. They are based on Article 13, section 3 of the company statutes and serve as a supplement to the regulations and instructions that apply to the Supervisory Board in accordance with Dutch legislation and company statutes. The task of the Executive Board and its working methods are included in the regulations with which the Executive Board aims to comply with the Dutch Corporate Governance Code. The Executive Board regulations are published on the RAI Amsterdam website (www.rai.nl).
Appointment appointment for two four-year terms
Executive Board members are, in principle, appointed for a period of a maximum of four years. They can be reappointed for another period of four years at most.
Conflict of interests See notice in the statement from the Supervisory Board.
Remuneration no shares, options, loans or securities provided
The Executive Board members do not receive any shares and/or options or similar rights for obtaining shares in the capital of the company, nor did they acquire any loans and/or securities. The remuneration is indicated in the financial statement (statement under â&#x20AC;&#x2DC;information on the consolidated financial statement).
Employee governance Code of Conduct applicable standards
RAI Amsterdam is aware of its social role and the resulting responsibilities towards all parties. The actions of RAI Amsterdam and its employees are founded on the core values and business principles formulated by RAI Amsterdam. The Code of Conduct provides clarity by describing standards related to the actions of everyone who represents RAI Amsterdam. The instructions given by the code of conduct are unconditional and not influenced by financial goals. The Code of Conduct was implemented on 1 September 2006 and is published on the RAI Amsterdam website (www.rai.nl).
84
Whistleblower scheme procedure for reporting
The whistleblower scheme determines how employees can report suspected violations to their
suspected violations
employer. The scheme details the procedure to be taken by the employer and determines that employees who report suspected violations and who act in accordance with the provisions and in good faith will not be put at any disadvantage in their position as a result of any report. The whistleblower scheme was implemented on 1 September 2006 and is published on the RAI Amsterdam website (www.rai.nl).
85
Risk management RAI Amsterdam has systems in place for risk analysis and control. The company distinguishes between strategic, financial/administrative and operational risks. Strategic risks are related directly to events that can structurally undermine the position of the company, operational risks are related directly to business activities, and financial/administrative risks are associated with developments in the financial market and financial & administrative management.
Risks strategic risks
We recognise five strategic risks: S-1 exploitation risk: the risk that one of the RAIâ&#x20AC;&#x2122;s own titles has to be cancelled S-2 risks related to letting to third parties S-3 traffic: the accessibility of RAI Amsterdam (city of Amsterdam, Schiphol) S-4 exploitation risk: the risk that a third party event is cancelled S-5 security against terrorism
financial / administrative risks
We recognise ten financial/administrative risks: F-1 financing risk (including not being able to comply with bank agreements) F-2 interest risk F-3 currency risk F-4 debtor risk F-5 administrative organisation: integrity, availability, monitoring of automatic data processing and storage F-6 financial control F-7 cash flow risk F-8 potential excessive reimbursement of expenses (fiscal) F-9 accounting fraud F-10 risk related to activities abroad: different laws & regulations than in the Netherlands
operational risks
We recognise 18 operational risks: O-1 safety while working in the halls O-2 construction risks: risks not covered by licenses that can occur when placing temporary installations and structures O-3 major health risks (Legionella) O-4 hazardous substances O-5 hygiene and food O-6 product liability related to RAI services O-7 crowd control (e.g., in case of fire) O-8 national strike O-9 failure of installations essential to an event (cooling, heating, power etc.) O-10 failure of in-house operational ICT systems (administration, operations) O-11 failure of event network for exhibitors O-12 third party demands on the ICT infrastructure and public services at RAI Amsterdam grow
86
faster than RAI Amsterdam is able to upgrade/expand O-13 organisers, exhibitors and/or visitors use the (public) infrastructure differently than expected, resulting in major disruptions O-14 lengthy malfunction of ticket websites (huishoudbeurs.nl, metstrade.com etc.) O-15 database integrity O-16 privacy violations as a result of data misuse O-17 data theft by hackers O-18 presence of asbestos in old building
Risk evaluation method current risk and consequences
Evaluating the actual risks for RAI Amsterdam involves both the current risk of an incident occurring and the current consequences (measured in financial terms) this might have on RAI Amsterdam.
evaluation of risk impact
The combination of the current risk and current consequences determines whether the current risk level is seen as low, medium or high. The evaluation explicitly takes into account the prevailing monitoring procedures and measures/actions taken to mitigate the intended risk. The determination of risk and consequence is indicated in the matrix table. The letters in the matrix indicate the type of risk, with S representing strategic risks, O operational risks, and F financial/administrative risks. The associated numbers refer to the risks as indicated above. The colours represent the following risk levels: low risk level (blue) medium risk level (grey), and high risk level (red).
Risk matrix Risk and consequence determine risk level
Risk (%) >90%: extreme
75-90%: high
50-75%: medium
O-6 O-14
F-8
S-3 F-10 O-18
S-1
S- 5
25-50%: low
O-1 O-5 F-4
O-10 O-13 O-15 O-16 O-17
F-9
S-2 O-7 O-9 O-11 O-12
S-4
< 25%: very low
O-2 F-5
F-3 F-6
O-3 O-4
F-1 F-2
O-8
F-7 insignificant < € 250,000
minor € 250,000 € 500,000
major moderate severe € 50 0,0 0 0 - € 1,000,000 - > € 2,500,000 € 1,000,000 € 2,500,000 Consequences (€)
87
risk appetite
RAI Amsterdamâ&#x20AC;&#x2122;s Executive Board assesses risk readiness. RAI Amsterdam has a maximum risk appetite of â&#x201A;Ź10 million. If an impact of this magnitude should occur, the company will have a sufficient buffer to deal with the effects.
risk management system
The risk management system did not change in 2016 with respect to 2015.
As the matrix indicates, only a few strategic risks receive the high-risk designation. These are: S-1 (exploitation risk: the chance that one of RAIâ&#x20AC;&#x2122;s own large exhibitions will be cancelled) S-4 (exploitation risk: the chance that a large exhibition organised by a third party will be cancelled) S-5 (security against terrorism).
The situation is the same as in 2015.
Discussed with the Supervisory Board The risks, internal risk management and control systems along with the realised and planned actions were discussed in the September meeting of the Supervisory Board.
Internal risk management and control systems Below is an overview of which checks and actions were undertaken related to the three largest risks with regard to their impact on RAI Amsterdam:
limiting risks related to RAI events
The risks related to RAI events (risk: medium, consequences: severe) are related to the interests of exhibitors and visitors and influenced by economic conditions (an example in the negative sense is when the AutoRAI was cancelled in 2013). These risks are limited by deploying dedicated, specialised teams for each of the RAI-organised events. The teams have a great deal of knowledge and wide range of contacts in the relevant markets and trade associations, ensuring that they remain fully informed on all event-related developments and are able to stimulate the participation of major exhibitors.
An important action to minimise these risks is the portfolio transition: being less dependent on one sector and expanding the portfolio internationally.
Strengthening the brands by rolling them out internationally and offering relevant solutions is another way to mitigate these risks. Advanced database marketing further contributes to limiting the risk of disappointing visitor numbers.
limiting risks related to third party events
To prevent a large third party-organised exhibition or conference from being cancelled (risk: low, consequences: severe) relation management of the A accounts has been placed at the Executive Board level. Long-term contracts are implemented where possible. To minimise the consequences of the cancellation of a large third-party title on the results of RAI Amsterdam, priority (time and funds-wise) is given to attracting alternative exhibitions and conferences for the future.
88
calamities
A risk analysis is performed for every large event to determine the security level. Investments in hardware and organisation to protect against calamities have been finalised.
share price risk
There is no risk linked to share prices as RAI Holding B.V. does not hold any shares listed on the stock exchange.
liquidity risks
Liquidity risk refers to the danger of having insufficient funds to cover direct obligations. Active monitoring of cash flow and setting up of a multi-year forecast which assesses the cash flow and thereby forecasts the available liquidity limits the liquidity risk to which RAI Amsterdam is exposed. If the liquidity risk increases, RAI Holding B.V. has formulated measures which lead to an immediate lowering of expenditures.
currency risks
There are no major currency risks given that the operational cash flows and financing activities are principally denominated in euros.
interest rate risks
Interest rate risks relate mainly to loans taken out for the long term. RAI Amsterdam B.V. hedges the interest rate risk by fixing interest rates through interest rate swap contracts: such contracts were concluded in 2013 for the period up to 2020 for an amount of €48 million at the end of 2016. RAI Amsterdam B.V. pays an interest rate of 1.54% on the interest rate swap it signed with Deutsche Bank AG/Coöperatieve Rabobank Amsterdam U. A. On bank overdrafts the RAI pays a variable rate of three months Euribor plus an individual surcharge. The amounts hedged through interest rate swaps are smaller than or equal to the outstanding principal amount of the loans from Deutsche Bank AG/Coöperatieve Rabobank Amsterdam U. A. The interest rate swaps had a fair value of negative €2,696,262 (2015: negative €2,969,000) on 31 December 2016. The nominal value of the interest rate swaps will be decreased during their remaining life (to 2020) down to zero.
uncertainty about possibilities to attract financing
The current financing agreement will last until 2020. The uncertainty about the possibilities to attract financing is mitigated by maintaining an active relationship with providers of loan capital, a proven track record of maintaining the agreed ratios, and keeping to a clear strategy. The current financing agreement, which runs up until and including 2020, will be followed up long before it expires.
competition rules
RAI Amsterdam has a tender board which tests all purchase orders above a given threshold amount for compliance with regulations and, where necessary or desirable, formulates calls for tender.
environmental legislation
RAI Amsterdam has various event-related permits and the following certificates: ISO-9001 (quality management), ISO-14001 (environmental management), ISO-20121 (sustainability of events) and OHSAS-18001 (occupational health and safety). A unique cooperation with the City of Amsterdam has meant that RAI Amsterdam is the first private company in the Netherlands to be given the authority to regulate and enforce event-related permits in a number of fields. To ensure compliance with legislation, RAI Amsterdam has an internal permit office which is charged with applying the policy and issuing and enforcing permits.
89
tax legislation
To ensure compliance with tax laws, RAI Amsterdam makes use of advisors, some of whom are affiliated with the accountant and some who are not, who assess RAI Amsterdamâ&#x20AC;&#x2122;s processing of tax legislation. The two most important types of tax for RAI Amsterdam are VAT and corporate tax.
90
THE MULTIFUNCTIONAL PARKING BUILDING
The new parking building can be used for many different purposes. The first floor has 7.20-metre ceilings and is finished in a sophisticated way, making its 2,500 m² very well suited as an exhibition floor or conference space. The floors can also be used as office space if required in the future. During large events, an extra pavilion can be installed on the roof of the building. All these options mean that the parking building is flexible and customisable, illustrating RAI Amsterdamâ&#x20AC;&#x2122;s efficient use of scarce space.
91
#05
Financial statement 2016
92
General RAI Holding B.V. has its registered office in Amsterdam (Europaplein 24), Chamber of Commerce number 33093880. The companyâ&#x20AC;&#x2122;s financial year runs from 1 January to 31 December.
Activities RAI Holding B.V. is een holdingmaatschappij. De belangrijkste activiteiten van de RAI zijn zowel gericht op het accommoderen van de eigen evenementen, als het beschikbaar stellen van de faciliteiten aan derden ten behoeve van beurzen, congressen, corporate events, theaterproducties en niche events.
Continuity These consolidated financial statements have been prepared assuming that the company will continue as a going concern.
General principles for valuations The annual accounts were drawn up in accordance with the generally accepted principles for financial reporting in the Netherlands and meet the legal provisions regarding the annual accounts as recorded in Part 9, Book 2 of the Netherlands Civil Code (BW). The principles for the valuation of assets and liabilities were applied consistently during the previous and current year. The principles for valuation and result determination apply to both the consolidated and company annual accounts.
Shareholder structure The RAI Association has a 75 per cent interest in RAI Holding B.V. The remaining 25 per cent of the shares are held by the Municipality of Amsterdam.
Principles of consolidation The financial data of RAI Holding B.V. and all its group companies are consolidated. Group companies are participations over which RAI Holding B.V. has decisive control. The other participating interests are not consolidated.
The financial information of companies acquired during the year under review is consolidated from the moment that RAI Holding B.V. acquires decisive control over the companies concerned until the moment this control is terminated. Transactions between companies that are consolidated are eliminated.
The company owns 100% of the shares in the following participations: RAI Amsterdam B.V., Amsterdam; Arfora B.V., Amsterdam.
These group companies include the results of the following indirect participations (100%): RAI Solar Energy B.V., Amsterdam; Amsterdam RAI Catering B.V., Amsterdam; RAI USA, Inc., Delaware; Rui Ang Exhibition and Convention Co., Ltd., Shanghai; RAI TURKEY ULUSLARARASI FUARCILIK VE GOSTERI HIZMETLERI ITHALAT IHRACAT TICARET LIMITED SIRKETI, Istanbul. The
93
company in Turkey was established in 2016. In addition, the result of the following indirect participation (50%): IBEX LLC, Maine USA, was also included.
Foreign currency The functional currency is the euro. Assets and liabilities denominated in foreign currency are converted into euros at the exchange rate valid on the date of the balance sheet. Transactions in foreign currencies are converted at the exchange rates at the time of the transaction. The exchange difference that results from the denomination is included in the profit and loss account.
Use of estimates In order to help determine the included figures when drawing up the annual accounts, the management of RAI Holding B.V. makes certain estimates and suppositions in accordance with the generally accepted principles of financial reporting. The factual results can deviate from these estimates.
The estimates and underlying suppositions are regularly evaluated. Revisions of estimates are recorded in the period in which the estimate is revised and in future periods that are affected by the revision.
On 1 November 2016 there was a change in estimate regarding the economic life of the activated long-term land lease from 2018 to 2066. As the economic life was extended, the future depreciation period was adjusted accordingly. As a result of the change in estimate, the result before taxes over the reporting year 2016 is â&#x201A;Ź34,348 higher. It is expected that the result before taxes will be approximately â&#x201A;Ź206,087 higher due to the change in estimate in the coming reporting years.
Financial tools Financial tools include both primary financial tools such as receivables or debts, and financial derivatives. For the principles of the primary financial tools, see the description per balance sheet item.
RAI Holding B.V. applies hedge-accounting based on documentation for each individual hedge relation, and documents how the hedge relations fit in with the goals of the risk management, hedge strategy and the expectations regarding the effectiveness of the hedge.
The effective part of the financial derivatives assigned to cost-price hedge-accounting is valuated at cost value and the ineffective part is valuated at fair value. The valuation changes of the fair value of the ineffective part are immediately processed in the profit and loss account.
Principles for the valuation of assets and liabilities Assets and liabilities are stated at their nominal value, unless otherwise indicated in the separate items in the explanatory notes.
Intangible fixed assets Externally obtained exhibition titles are valued at cost price or market value if lower, and are depreciated over their economic life, which is assumed to be 20 years at most.
94
The economic life for the IBEX exhibition title is assumed to be 15 years at most.
Software is valued at historic cost and is depreciated over its economic life, which is assumed to be ten years at most. Operating rights are valued at acquisition price and depreciated annually based on the term of these rights.
Tangible fixed assets Tangible fixed assets are valued at their acquisition price, minus straight-line depreciation based on their economic life and minus any special depreciation.
Maintenance costs for buildings owned are immediately charged to the results, or entered as assets and depreciated if the asset criteria allow it. The depreciation calculation takes the residual value into account. This residual value is expected to be nil in all cases.
Financial fixed assets Participating interests over which significant control is exercised over their business and financial policy are stated at their net asset value determined on the basis of the accounting principles of RAI Holding B.V. Participating interests over which no significant control is exercised are stated at the acquisition price or current value if lower. Receivables from and loans to participating interests as well as other receivables are stated at the fair value in the first processing, and then valued at the amortised cost minus the necessary provisions.
Special depreciation of fixed assets An evaluation is made each year to see whether there are any indications that intangible, tangible or financial fixed assets are subject to special depreciation. Special depreciations apply when the balance sheet value of the asset is higher than the realisable value. If there is a case of special depreciation, then the relevant asset is devalued to the realisable value. The loss is immediately processed as expense in the profit and loss accounts.
Receivables Receivables are stated at the fair value in the first processing, and then valued at the amortised cost, which is the same as the nominal value minus any provisions for doubtful debts. These provisions are determined based on an individual assessment of the receivables.
The receivables have an expected term of up to one year, unless stated otherwise.
Stock The stock mainly involves food & beverage products of which the valuation is determined at acquisition costs, minus a provision for obsolescence, where necessary.
Securities Securities are stated at their cost or market value on the balance sheet date, whichever is the lower. The market value is in principle equal to the value quoted on the stock exchange. If a sale is expected in the short term, the directly realisable value is considered the market value.
Liquidities Liquidities are at the disposal of the company.
95
Provisions Provisions are included for all rightful enforceable or factual obligations resulting from an event before the balance sheet date, which are expected to require an export of capital for the fulfilment thereof and of which the scope can be reliably estimated.
A provision for long-service payments is included based on the valid long-service regulations per balance sheet date, taking into account the likelihood of continued employment, future labour cost developments and discount provisions.
A provision is included for bonus schemes and participations based on relevant performance schemes. This provision is included under current liabilities.
Pension provision The company has two active pension schemes for its employees. Employees who started working for the company before 1 January 2013 are subject to a pension provision that qualifies as a defined benefit plan, in which the defined pension payments are based on average pay. This pension scheme has been placed with a pension insurer, and is processed in the financial statement as a defined contribution scheme due to the fact that the obligations for realising this pension scheme are entirely reinsured.
Employees who started working for the company since 1 January 2013 or those who have voluntary switched to the new pension scheme are subject to a premium scheme with the nature of a defined contribution agreement in which the company obligations are limited to making an annual contribution to the insurance company. Future payable contributions will partly depend on the development of the employment conditions and the yield on the invested contributions achieved by the insurer.
Long-term liabilities Long-term liabilities include debts with a remaining term of over one year. These debts are stated at the fair value in the first processing, and then valued at the amortised cost.
Short-term liabilities Short-term liabilities have an expected term of less than one year. A provision is included for bonus schemes and participations based on relevant performance schemes. There is also a provision included for contractual agreements with employees.
Tax deferrals Temporary differences between the determination of profit for commercial and tax purposes are stated at their nominal value in the balance sheet as a tax deferral or asset. Deferred claims for corporation tax on account of tax-deductible losses are valued at the future tax rate known on the balance sheet date in so far as it can reasonably be expected that the claims are realisable.
RAI Holding B.V. is the leading company of a group that is treated as a single entity for tax purposes. The other members of the group are: RAI Amsterdam B.V., RAI Solar Energy B.V., Amsterdam RAI Catering B.V. and Arfora B.V.
Principles for determination of results Revenue The financial statements have been prepared on the basis of the historical cost convention. Revenue and expenses are accounted for in the period in which the goods or services are supplied. For exhibitions and events this is the period in which the event takes place. Profits are accounted for in that period. Losses and risks that originated before the end of the financial year are processed if and insofar
96
as they became known before the annual accounts were drawn up.
Depreciation The depreciation on tangible fixed assets is calculated on a linear basis by reference to the expected economic life.
The applied depreciation rates are between 2% and 20%. The depreciation of the intangible fixed assets is related to the acquisition value, and ranges between 5% and 20%. Possible residual values of tangible and/or intangible fixed assets are not taken into account.
Financial revenue and expenditure The financial revenue and expenditure involve the exchange differences, interest revenue and costs attributable to the period concerned.
Participating interest results The participating interest results concern the share of the company in the results of the net asset value of the participating interests. The share that the company is due is stated as the result of a specific participating interest in the participating interest results.
Corporation tax The corporation tax is calculated on the commercial pre-tax profit, taking into account the tax facilities. The mutation in the provision for deferred corporation tax is taken into account in the calculations.
Cash flow statement The cash flow statement has been drawn up in accordance with the indirect method. The resources in the cash flow statement consist of liquidities and bank credits.
97
1.1. Consolidated balance sheet (before proposed appropriation of results) Consolidated balance sheet Before proposed appropriation of results, amounts x â&#x201A;Ź1,000
Ref.
ASSETS
Fixed assets
Intangible fixed assets
1.1.1.
10,239
4,285
Tangible fixed assets
1.1.2.
170,787
166,217
Financial fixed assets
1.1.3.
1,134
1,134
182,160
171,636
Current assets
Stock
315
403
Receivables
1.1.4.
22,637
29,162
Securities
41
41
Liquidities
742
529
23,735
30,135
205,895
201,771
LIABILITIES
Shareholder equity
1.1.5.
Subscribed capital
2,730
2,730
Share premium reserves
22,006
22,006
Other reserves
58,070
57,733
Unappropriated profit
5,048
4,214
87,854
86,683
Provisions
1.1.6.
Tax deferral
535
508
Other provisions
1,506
1,600
2,041
2,108
Debts
Long-term liabilities
1.1.7.
61,395
59,951
Short-term liabilities
1.1.8.
54,605
53,029
205,895
201,771
98
2016
2015
2.1. Consolidated profit and loss account Consolidated profit and loss account Amounts x €1,000
Ref.
Net turnover
2.1.1.
Sum of operating revenues
Costs of outsourced work and other external costs
2.1.2.
Wages and salaries
2.1.3.
Social security contributions
Pension contributions
Amortisation of tangible and intangible fixed assets Other operating expenses (including other
2016
2015
120,202
126,151
120,202
126,151
47,084
58,614
23,547
21,973
3,257
3,273
2,177
2,536
2.1.4.
14,979
13,778
2.1.5.
19,718
17,034
personnel costs)
Sum of operating expenses
110,762
117,208
Operating results
9,440
8,943
2.1.6.
‑2,592
‑3,260
Profit on ordinary activities before tax
6,848
5,683
Taxes on profit on ordinary activities
2.1.7.
‑1,800
‑1,469
Results after tax
5,048
4,214
Direct changes in equity
‑
‑
Overall result of the legal entity
5,048
4,214
99
3.1. Consolidated cash flow statement Consolidated cash flow statement Amounts x €1,000
Cash flow from operational activities
Operating profit
9,440
8,943
Adaptations for:
Depreciation on intangible or tangible fixed assets
14,979
13,778
Changes in long-term liabilities
1,459
‑158
Changes in provisions
‑67
‑1,334
16,372
12,444
Changes in stock and receivables
6,613
37
Changes in short-term debts (excluding bank credit)
‑2,513
2,602
4,100
2,639
Paid interest
‑1,936
‑2,629
Paid taxes on profit from ordinary activities
‑1,783
‑1,731
‑3,719
‑4,360
Total cash flow from operational activities
26,192
19,666
Cash flow from investment activities
Net investment in tangible fixed assets
‑18,270
‑16,752
Net investment in intangible fixed assets
‑3,916
‑842
Net disinvestment in financial fixed assets
‑
‑
Total cash flow from investment activities
‑22,186
‑17,594
Cash flow from financing activities
Dividend payment
‑3,207
‑2,262
Redemption of long-term liabilities in reporting year
‑15
‑2,165
Total cash flow from financing activities
‑3,222
‑4,585
Changes in liquidities and bank credit
784
‑2,513
Cash and bank credit as on 1 January
‑10,242
‑7,729
Cash and bank credit as on 31 December
‑9,458
‑10,242
100
2016
2015
Notes on the consolidated balance sheet as on 31 December 2016 1.1.1. Intangible fixed assets
Intangible fixed assets Amounts x €1,000
Exhibition
Software
Other
872
7,797
1,684
383
10,736
6,356
473
‑
404
7,233
‑
411
‑
‑411
‑
‑216
‑71
‑
‑
‑287
7,012
8,610
1,684
376
17,682
763
4,565
1,123
‑
6,451
46
1,181
52
‑
1,279
titles Cost as on 1-1-2016 Investments Finished work in progress Disinvestments Cost as on 31-12-2016 Depreciation and amortisation as on 1-1-2016 Depreciation Disinvestments Depreciation and amortisation as on 31-12-2016
progress
‑71
‑
‑
‑287
593
5,675
1,175
‑
7,443
109
3,232
561
383
4,285
6,419
2,935
509
376
10,239
Book value as on 31-12-2016
Total
‑216
Book value as on 1-1-2016
Work in
Investments in exhibition titles are depreciated over a maximum period of 20 years. An impairment test on titles that were externally acquired in the past is performed annually. Software is depreciated over a period of ten years at most, calculated from the time it is first used.
The ‘other’ category primarily concerns the use of a lounge in the Amsterdam ArenA. These rights will be depreciated until the year 2026. Disinvestments are related to assets that are no longer used.
101
1.1.2. Tangible fixed assets
Tangible fixed assets Amounts x €1,000
Buildings,
Inventory
installations
Work in
Total
progress
and land Cost as on 1-1-2016 Investments Finished work in progress Disinvestments Cost as on 31-12-2016 Depreciation and amortisation as on 1-1-2016 Depreciation Disinvestments Depreciation and amortisation as on 31-12-2016 Book value as on 1-1-2016 Book value as on 31-12-2016
310,936
27,806
8,686
347,428
14,923
955
2,392
18,270
7,863
102
‑7,965
‑
‑2,581
‑441
‑
‑3,022
331,141
28,422
3,113
362,676
162,298
18,848
65
181,211
9,975
2,944
‑65
12,854
‑1,735
‑441
‑
‑2,176
170,538
21,351
‑0
191,889
148,638
8,958
8,621
166,217
160,603
7,071
3,113
170,787
Buildings and land are depreciated over a period of 50 years, the Convention Centre over a period of 20 years, and installations over a period of 10 to 20 years. The other fixed assets are depreciated over a period of five to 20 years.
The book value of land subject to a long lease until 2028 on 31 December 2016 is €3,254,614 (2015: €3,529,652). Disinvestments are related to fixed assets that are no longer used.
1.1.3. Financial fixed assets
Financial fixed assets Amounts x €1,000
Total
1,134
Other changes
‑
1,134
Balance as on 1-1-2016
Balance as on 31-12-2016
The financial fixed assets refer to a capital interest in Stadion Amsterdam CV of 1/9 share of the limited capital. The valuation of this capital interest is valued at the acquisition price or current value if lower.
102
1.1.4. Current assets, receivables
Current assets, receivables Amounts x €1,000
2016
2015
14,233
18,343
Trade receivables Provision for doubtful debts
‑1,833
‑1,467
12,400
16,876
4,315
4,773
Other receivables Corporation tax
136
‑
Accrued assets
5,786
7,513
22,637
29,162
The other receivables include, among other items, yet to be billed invoices to an amount of €2,918,384 (2015: €3,612,080) and receivables related to the pension provision to an amount of €717,141 (2015: €702,004).
The accrued assets include, among other items, costs paid in advance to the amount of €315,450 (2015: €1,948,423) and paid personnel costs for future exhibitions to an amount of €4,877,950 (2015: €5,563,838).
1.1.5. Shareholder equity
For an explanation of the mutations in the shareholder equity in 2016 and 2015, see the notes on the company annual accounts of RAI Holding B.V. (see 4.1.2.). There were no direct changes in the shareholder equity during the financial year.
1.1.6. Provisions
Provisions Amounts x €1,000
Tax
Other
Total
deferral
Balance as on 1-1-2016
508
1,600
2,108
Allocation
396
237
634
‑369
‑331
‑701
535
1,506
2,041
Withdrawal Balance as on 31-12-2016
The passive deferred tax consists of the differences between commercial and tax-based valuation.
The other provisions mainly involve individual redundancies, a provision for long-service payments and other personnel-related provisions. The above provisions, with the exception of the individual redundancies, are mainly of a long-term nature.
103
1.1.7. Long-term liabilities
Long-term liabilities Amounts x €1,000
2016
2015
Loans Deutsche Bank AG
26,000
26,000
Loan Coöperatieve Rabobank Amsterdam U.A.
26,000
26,000
Loan Triodos Bank
253
268
Loan Klimaatfonds Amsterdam
100
100
9,042
7,583
Other liabilities
61,395
59,951
Principle
Payment in
Amount
book year
remaining
Loan Deutsche Bank AG
26,000
‑
26,000
Loan Coöperatieve Rabobank Amsterdam U.A.
Overview of long-term loans As on 31 December 2016, amounts x €1,000
26,000
‑
26,000
Loan Triodos Bank
283
15
268
Loan Klimaatfonds Amsterdam
100
‑
100
9,974
154
9,820
Other liabilities
62,357
169
62,188
Minus short-term part of long-term liabilities
793
61,395
In 2013 the RAI entered into a credit agreement with Deutsche Bank AG and Coöperatieve Rabobank Amsterdam U.A. This credit agreement comprises an overdraft facility of €30 million as well as two loans totalling €52 million (50% Deutsche Bank AG and 50% Coöperatieve Rabobank Amsterdam U.A.) until 2020.
In 2016 the RAI established an additional credit facility with Deutsche Bank AG and Coöperatieve Rabobank Amsterdam U.A., consisting of a current account of US$ 6.7 million at Coöperatieve Rabobank Amsterdam U.A. As part of this agreement, it was agreed that the current account of Coöperatieve Rabobank Amsterdam U.A. is reduced by €3 million and the current account of Deutsche Bank AG is increased by €3 million. This way both banks are a 50% credit provider. The current account of US$ runs until 2020.
The rate of interest on the loans is Euribor + 1.70%.
In 2013 the RAI entered into an interest swap agreement, based on which RAI Holding B.V. pays an interest rate of 1.54% over an amount of €48 million.
The business premises at Europaplein have been mortgaged as security for the repayment of the long-term debts and overdraft facility.
104
A credit agreement with the Triodos Bank for the financing of solar panels was concluded in 2014. It consists of a loan of €0.29 million for the period until 1 January 2034. The loan is being repaid in 79 quarterly terms, starting 1 July 2014. The interest rate is 3.5% on an annual basis for the period until 17 January 2026.
A credit agreement to finance solar panels was concluded with the Amsterdam Investment Fund of the Municipality of Amsterdam in 2014. It consists of a loan of €0.1 million for the period until 5 March 2029. The loan will be repaid at the latest by 5 March 2029 and the interest rate is 0%.
The other long-term debts consist of a lump-sum payment received in 1988 from the Municipality of Amsterdam for the operating losses of the Convention Centre in the period until 2038. This lump-sum payment was acquired in the past for an interest of 7.46%. This lumpsum payment is mainly of a long-term nature. The release benefits the operational costs. The annual interest increase is at the expense of the financial revenue and expenditure.
Of the long-term liabilities, a total of €3.3 million has a term of over five years.
1.1.8. Short-term liabilities
Short-term liabilities Amounts x €1,000
Bank overdrafts Short-term part of long-term liabilities
2016
2015
10,200
10,771
793
778
670
‑
Advance payments
20,284
22,686
Debts to suppliers
5,694
6,941
‑
359
Debts to shareholders
Corporation tax Other taxes and social security contributions
1,876
426
15,089
11,068
54,606
53,029
Accruals and deferred income
The accruals and deferred income largely consist of receivable invoices for costs made to an amount of €6,099,937 (2015: €7,615,345) and accruals and deferred income related to personnel to an amount of €3,262,482 (2015: €3,169,456).
105
Off-balance sheet information
1. There are no contractual commitments under tenancy agreements (2015: none). 2. No bank guarantees were issued (2015: none). 3. There are operating lease commitments for 44 cars (2015: 46). At the end of the financial year the contractual commitments totalled €910,091 (2015: €810,719), of which €360,041 is due within one year. The remainder is due within five years. 4. A total of €588,686 (2015: €634,593) in lease payments was made in 2016. 5. In 2017 an agreement was reached with the Municipality of Amsterdam, Land Lease and Land Issuance and Development department on an advanced change of the long-term land lease agreement. The new agreement has a term of 50 years until 30 October 2066. The available part of the capitalised acquired long-term land lease as of 1 November 2016 will be depreciated over the new term of 50 years. The total liability for long-term land lease (until 2066) is €12,976,314 of which an amount of €259,526 is due within one year. An amount of €1,297,631 is due within five years. The remainder involves the period 2022 to 2066. 6. RAI Holding is the leading company of a group that is treated as a single entity for corporation and turnover tax purposes. The other members of the group are: RAI Amsterdam, RAI Solar Energy, Amsterdam RAI Catering and Arfora B.V. Each company is severally liable for the liabilities of the fiscal entity. 7. Liabilities were incurred of € 471,260 related to the construction of Strandzuid city beach.
Financial tools
The risks associated with the financial tools are clarified below.
Credit risk In order to manage the credit risk, exposure is constantly monitored and acted upon. There was no major concentration of credit risks at the end of the financial year. Credit risks relate to debtors and other short-term receivables. Sufficient provisions were included accordingly.
Currency risk There are no substantial currency risks as the operational cash flows and financing activities mainly take place in euros.
Interest risk Interest risks mainly concern long-term loans. Amsterdam RAI B.V. has interest rate swap contracts to cover interest risks. In order to fix the interest rates, interest rate swaps amounting to €48 million at the end of 2016 were concluded in 2013 for the period until 2020. RAI Amsterdam B.V. pays an interest rate of 1.54% on the interest swap with Deutsche Bank AG/Coöperatieve Rabobank Amsterdam U.A. A variable interest rate of three months Euribor plus an individual surcharge is paid on the bank overdrafts. The amounts covered by the interest swaps are smaller than or equal to the outstanding principle of the loans from Deutsche Bank AG/Coöperatieve Rabobank Amsterdam U.A. On 31 December 2016, the interest swaps had a fair value of minus €2,696,262 (2015: minus €2,969,000). The nominal value will be reduced to zero over the remaining interest swap period (until 2020).
106
Notes on the consolidated profit and loss accounts 2016 2.1.1. Turnover
Turnover Amounts x â&#x201A;Ź1,000
2016
2015
By geographical area
116,143
117,478
4,059
8,673
120,202
126,151
By activity
Exhibitions and events
50,236
56,871
Letting to third parties
19,787
18,102
Catering
14,461
15,547
Parking
5,036
5,898
Hotel commissions
2,555
3,285
26,130
24,334
1,997
2,114
120,202
126,151
2015
The Netherlands Other countries
Facility Services Other
2.1.2. Costs of outsourced work or other external costs
Costs of outsourced work or other external costs Amounts x â&#x201A;Ź1,000
2016
Exhibitions and events
16,894
27,012
Letting to third parties
2,401
1,743
Outsourcing costs
7,131
6,634
Catering
5,179
4,791
Personnel
7,487
7,253
Marketing costs
3,300
5,995
Other
4,692
5,186
47,084
58,614
107
2.1.3. Personnel costs
The salary paid to (former) Board members (3) in 2016 totalled €660,073.50. In 2015, the Board of RAI Holding B.V. consisted of one person. Based on Article 383 section 1 book 2 BW from the Netherlands Civil Code, the salary paid that year is therefore not included in this statement.
The salary paid to Supervisory Board members (average of 4) amounted to €104,125 (in 2015: €106,682, average of 4).
Average number of employees In FTE, working for the group
2016
2015
374
375
2016
2015
BY DISCIPLINE
Commercial
51%
50%
Operational
36%
40%
Financial/staff
13%
10%
100%
100%
In the Netherlands
Personnel, by discipline Percentage / FTE (balance at the end of the year)
Total
2.1.4. Depreciation on intangible and tangible fixed assets The depreciation on intangible and tangible fixed assets consists of €14.1 million in regular depreciations and €0.8 in book losses on disinvested tangible fixed assets.
2.1.5. Other operational costs
Other operational costs Amounts x €1,000
2016
2015
Building costs
9,552
7,809
Agency costs
694
715
Automation costs
4,404
4,042
Consultancy costs
2,490
2,067
916
898
1,253
1,248
409
255
Travel, accommodation and representation costs Other personnel costs Other general operational costs
19,718
17,034
108
Auditors’ costs In accordance with Article 382a Book 2 of the Netherlands Civil Code, an amount of €73,260 (2015: €76,550) is due to BDO Audit & Assurance B.V., of which €70,000 (2015: €70,000) relates to the annual audit, and €3,260 to other audit assignments.
2.1.6. Interest expenses and similar costs
Interest expenses and similar costs Amounts x €1,000
2016
2015
2,592
3,260
2016
2015
Interest expenses
2.1.7. Taxes
Taxes Amounts x €1,000
Deferred corporate tax Acute corporate tax current book year Corporate tax previous years Tax charged in the profit and loss account
‑369
‑834
2,133
2,222
36
81
1,800
1,469
The effective taxation rate over 2016 is 26.2% (2015: 25.8%) which is in line with the generally applicable tax rate in the Netherlands.
109
4.1. Company balance sheet (before appropriation of results) Company balance sheet Before appropriation of results, amounts x â&#x201A;Ź1,000
ASSETS
ref.
2016
2015
Fixed assets
Financial fixed assets
4.1.1.
113,092
108,044
113,092
108,044
LIABILITIES
Shareholder equity
4.1.2.
Issued capital
2,730
2,730
Share premium
22,006
22,006
Other reserves
58,070
57,733
Unappropriated profit
5,048
4,214
87,854
86,683
Debts
Debts to group companies
4.1.3.
25,238
21,361
113,092
108,044
110
5.1. Company profit and loss account Company profit and loss account Amounts x €1,000
2016
2015
Company result after taxes
‑
‑
5,048
4,214
5,048
4,214
Result from participating interest after taxes Net result
The corporate profit and loss account has been drawn up in accordance with Article 402 of Book 2 of the Netherlands Civil Code.
The financial data of RAI Holding B.V. is included in the consolidated annual account. As a result, the profit and loss account of RAI Holding B.V. only states the share in profits after taxation of participating interests and the other result after taxes, in accordance with Article 402 of Book 9 of the Netherlands Civil Code.
111
Notes on the company balance sheet as on 31 December 2016 4.1.1. Financial fixed assets
Financial fixed assets Amounts x â&#x201A;¬1,000
Participation in
group companies Balance as on 1-1-2016 Result Balance as on 31-12-2016
108,044
5,048
113,092
The company owns 100 percent (unless otherwise stated) of the shares in the following major participations: RAI Amsterdam B.V., Amsterdam; Arfora B.V., Amsterdam.
The results of these group companies include those of the following indirect participations (100%): RAI Solar Energy B.V., Amsterdam; Amsterdam RAI Catering B.V., Amsterdam; RAI USA, Inc., Delaware; Rui Ang Exhibition and Convention Co., Ltd., Shanghai and RAI TURKEY ULUSLARARASI FUARCILIK VE GOSTERI HIZMETLERI ITHALAT IHRACAT TICARET LIMITED SIRKETI, Istanbul. The company in Turkey was established in 2016.
112
4.1.2. Shareholder equity
Shareholder equity Amounts x €1,000
Balance as on 1-1-2015
Share capital
Share
Other
Unapprop.
premium
reserves
profit
Total
84,731
2,730
22,006
50,738
9,257
Appropriation of profit
‑
‑
9,257
‑9,257
‑
Result book year
‑
‑
‑
4,214
4,214
Dividend
‑
‑
‑2,262
‑
‑2,262
2,730
22,006
57,733
4,214
86,683
86,683
Balance as on 31-12-2015
Balance as on 1-1-2016
2,730
22,006
57,733
4,214
Appropriation of profit
‑
‑
4,214
‑4,214
‑
Result book year
‑
‑
‑
5,048
5,048
Dividend
‑
‑
‑3,877
‑
‑3,877
Balance as on 31-12-2016
2,730
22,006
58,070
5,048
87,854
The authorised capital is €13,650,000, divided into 225,000 ordinary ‘A’ shares and 75,000 ordinary ‘B’ shares, each having a nominal value of €45.50. Of these, 45,000 ‘A’ shares and 15,000 ‘B’ shares have been issued and fully paid up.
113
4.1.3. Debts to group companies
Debts to group companies Amounts x â&#x201A;Ź1,000
Debts to group
21,361
3,877
25,238
companies Balance as on 1-1-2016 Result Balance as on 31-12-2016
As was the case last year, no interest is charged on debts to group companies.
Personnel
As was the case in 2015, the company did not employ any staff in 2016.
Off-balance sheet information
Letters of liability in accordance with Article 403 of Book 2 of the Netherlands Civil Code have been issued and deposited for the participating interests in RAI Amsterdam B.V., RAI Solar Energy B.V. and Amsterdam RAI Catering B.V.
Amsterdam, 16 March 2017
The Executive Board of RAI Holding B.V.
P. (Paul) Riemens, CEO M. (Maurits) van der Sluis, COO
Supervisory Board of RAI Holding B.V.
R.H. (Roelf) de Boer, chair J.W.Th. (John) van der Steen, vice-chair A.M.H. (Annemarie) van Gaal
114
Proposed appropriation of profit Proposal for the appropriation of profit
Management proposes the General Meeting pay a dividend of â&#x201A;Ź2,284 million over the year 2016. The result after tax over 2016 is included in the unappropriated profit item under shareholder equity.
Events after the balance sheet date
None.
115
#06
Other information
116
Appropriation of result in accordance with the company statutes Article 24 of the company statutes states the following regarding the appropriation of profit.
Article 24.
1. In addition to several other reserves, the company can keep a general reserve, a share premium reserve A, a share premium reserve B, a dividend reserve A, and a dividend reserve B in its books. The respective rights to these reserves go to owners of shares A and shares B, pro rata to the number and type of shares they own. 2. Payments to shares A and shares B that exceed the nominal value of those shares are added to the share premium reserve concerned. 3. Without prejudice to what is determined elsewhere in this article, the distributable profit is freely at the disposal of the General Meeting for the payment of dividend, reservations or other such purposes within the companyâ&#x20AC;&#x2122;s goal as determined by the General Meeting. 4. The General Meeting can determine, with the prior approval of the owners of shares of the type concerned, to not pay profit on those shares but to reserve that part of the profit and add it to the dividend reserve A or B respectively. Payment against dividend reserve A or B respectively can only be made to the owners of the type of shares concerned if the General Meeting determines as such after prior approval by a meeting of those owners. 5. Without prejudice to what is determined elsewhere in this article, if the General Meeting decides to reserve profit or pay dividend on all shares regardless of the type, equal amounts of the profit will be reserved or paid as dividend. 6. The company can only make payments to shareholders and other parties that have a right to the payable profits insofar as the shareholder capital is larger than the paid and requested part of the capital increased by the reserves that must be applied in accordance with the law or statutes. The shares kept in the capital of the company are not included in the calculation of the appropriation of profit. 7. Appropriation of profit will occur after the determination and approval of the annual accounts which show that payment is permissible. 8. The General Meeting is authorised to determine payments on one or multiple interim dividends, with due regard to point seven. 9. Unless the General Meeting determines another date, dividends are payable immediately after determination. 10. The right to claim for payment of dividend lapses after a period of five years.
117
Audit statement by the independent accountant To: the shareholders and Supervisory Board of RAI Holding B.V. A. Statement regarding the financial statements 2016 included in the Annual Report
Our assessment We have audited the 2016 financial statements of RAI Holding B.V. in Amsterdam which consist of the consolidated and company financial statements.
We are of the opinion that the financial statements provide a faithful representation of the size and composition of the capital of RAI Holding B.V. as on 31 December 2016 and the results over 2016 in accordance with Title 9 Book 2 of the Netherlands Civil Code (BW).
The financial statements consist of:
1. the consolidated and company balance sheet as on 31 December 2016; 2. the consolidated and company profit and loss accounts for 2016; and 3. the notes including an overview of the applied principles for financial accounting and other notes
The foundation of our assessment Our audit took place in accordance with Dutch law, including the Dutch auditing standards. Our responsibilities under these standards are described in the section â&#x20AC;&#x2DC;our responsibilities for the audit of the financial statementsâ&#x20AC;&#x2122;.
We are independent of RAI Holding B.V. as required by the Regulation regarding the Independence of Accountants in the case of Assurance Engagements (ViO) and other relevant independent requirements in the Netherlands. In addition, we acted in compliance with the Regulation Code of Conduct and Professional Practice Accountants (VGBA).
We are of the opinion that the audit information we received is sufficient and appropriate to serve as a foundation for our assessment.
B. Statement on the other information included in the Annual Report
In addition to the financial statements and our audit statement, the annual report includes other information, namely:
In Brief section; Statement from Supervisory Board; Statement from Executive Board; Governance and risk management section; Other information.
Based on the activities below we believe that the other information:
is consistent with the financial statements and does not contain material differences; contains all information required based on Title 9 Book 2 BW.
118
We have read the other information and based on our knowledge and understanding, acquired from the audit of the financial statements or otherwise, considered whether the other information contains material differences.
In our activities, we complied with the requirements as in Title 9 Book 2 BW and the Dutch Standard 720. These activities do not have the same depth as our audit activities for the financial statements.
The Board is responsible for drawing up the other information, including the statement from the Board and other details in accordance with Title 9 Book 2 BW.
C. Description of responsibilities related to the audit of the financial statements
Responsibilities of the Board and Supervisory Board with regard to the financial statements The Board is responsible for the preparation and fair presentation of the financial statements in accordance with Title 9 Book 2 BW. In this framework, the Board is responsible for such internal control as it deems necessary to enable the preparation of the financial statements free from material misstatement, whether due to errors or fraud.
As part of the preparation of the financial statements, the Board is responsible for assessing the companyâ&#x20AC;&#x2122;s ability to continue as a going concern. Based on the financial reporting framework mentioned, the Board should prepare the financial statements using the going concern basis of accounting unless it either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. The Board should disclose events and circumstances that may cast significant doubt on the companyâ&#x20AC;&#x2122;s ability to continue as a going concern in the financial statements.
The Supervisory Board is responsible for overseeing the companyâ&#x20AC;&#x2122;s financial reporting process.
Our responsibilities for the audit of the financial statements It is our responsibility to plan and perform the audit assignment in a manner that allows us to obtain sufficient and appropriate audit evidence for our assessment.
Our audit has been performed with a high, but not absolute, level of assurance, which means we may not have detected all errors and fraud.
Misstatements can arise from errors or fraud and are considered material if, individually or combined, they could reasonably be expected to influence the economic decisions made on the basis of these financial statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our assessment.
We have exercised professional judgment and have maintained professional scepticism throughout the audit, in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Among other things, our audit included:
identifying and assessing the risks of material misstatement of the financial statements, whether due to errors or fraud, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our assessment. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from errors, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; obtaining an understanding of internal control relevant to the audit in order to design audit procedures which are appropriate in the
119
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control; evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related notes made by the Board; concluding on the appropriateness of the Board’s use of the going concern basis of accounting, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related notes in the financial statements or, if such notes are inadequate, to modify our assessment. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company ceasing to continue as a going concern; evaluating the overall presentation, structure and content of the financial statements, including the notes; and; evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
In view of our responsibilities for the assessment, we are responsible for the control, supervision and realisation of the group audit. In this framework, we determined the nature and scope of the activities to be performed for the group companies, in which the scope and/or risk profile of the group companies or activities are decisive. Based hereon, we selected the group companies for which an audit or assessment of the full financial information or specific items were required.
We communicate with the Supervisory Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant findings in internal control that we identify during our audit.
Amstelveen, 5 April 2017
BDO Audit & Assurance B.V.
Herein represented by,
O. van Agthoven RA
120
121
Colophon Published by RAI Amsterdam, Corporate Communication
Concept and realisation Toebosch Consult
Photography OTTI Fotografie Julie Blik Fotografie Ad Bogaard Fotografie MRPEREZIDENT Fotografie Bastiaan Aalbersberg
Print Mullervisual Communication
Website Developed in Kirra Jaarverslag
Contact RAI Amsterdam welcomes reactions to its annual report via corcom@rai.nl.
122
Copyright The information presented in this annual report may be quoted with the source reference â&#x20AC;&#x2DC;RAI Holding B.V. annual report 2016â&#x20AC;&#x2122;.
123
RAI Amsterdam Europaplein Amsterdam P.O. Box 77777 1070 MS Amsterdam The Netherlands Tel. +31 20 549 12 12 Fax +31 20 646 44 69 www.rai.nl
124