there is something different in the air

THERE IS SOMETHING
DIFFERENT IN THE AIR
ANNUAL REPORT AND ACCOUNTS
2007
ANNUAL REPORT
AND ACCOUNTS
2007
contents
03
Corporate Boards
05
Organisation Chart
07
2007 Performance
08
Operating Activities
12
Commercial Activities
12
Aircraft Handling Activities
13
Maintenance Activities
14
Flight Operations
14
Quality and Security
15
Human Resources
20
Information Systems
22
Economic and Financial Performance
28
Proposal for Appropriation of Profit
29
Financial Statements
30
Balance Sheet
32
Profit and Loss Account by Nature
34
Profit and Loss Account by Function
35
Cash Flow Statements
36
Notes to the Financial Statements
57
Legal Certification of the Accounts
58
Report and Opinion of the Statutory Auditor
60
Legal Certification of the Accounts
62
Annual Report on the Audit Work Performed
64
Audit Report
ANNUAL REPORT
AND ACCOUNTS
2007
| 03
CORPORATE BOARDS
ANNUAL REPORT
AND ACCOUNTS
2007
CORPORATE BOARDS
General Assembly
Chairman:
Ana Maria Soares de Albergaria Pacheco Gouveia
Vice-Presidente:
João Manuel Beliz Trabuco
Ana Maria Furtado Soares Albergaria Pacheco Gouveia
Secretaries:
Mónica Silvia dos Anjos Vaz de Medeiros Fernandes
Maria Alexandra Celorico Pacheco Vieira
Board of Directors
Chairman:
António José Vasconcelos Franco Gomes de Menezes 14
Manuel António Carvalho Cansado 15
Members:
Luísa Maria Estrela Rego Miranda Schanderl 16
António Maurício do Couto Tavares de Sousa
Luís Filipe Soares Borges da Silveira
José Adriano Pires Ávila
17
Statutory Auditor:
Manuel Herberto de Medeiros Quaresma (auditor no. 675)
14
Took up duties on 1 November 2007
15 Stepped
16 Took
down on 31 October 2007
up duties on 1 November 2007
17 Stepped
down on 31 October 2007
1947 | SATA IS BORN
SATA – Sociedade Açoreana de Transportes Aéreos is created and spreads its wings with
a Beechcraft named ‘Açor’. The Azores are now closer to the rest of the world.
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ANNUAL REPORT
AND ACCOUNTS
2007
| 05
ORGANISATION CHART OF SATA INTERNACIONAL, SA
ANNUAL REPORT
AND ACCOUNTS
2007
ORGANISATION CHART OF SATA INTERNACIONAL, SA
Board of Directors
General Secretariat
Management Control Office
Image and Publicity Office
Human Resources Division
Finance Division
General Commercial Division
Planning
and Operation
Division
Marketing and
Sales Division
Quality Office
Legal Office
Security Office
Accident Prevention Office
Information Systems Division
General Operations Division
Continuing
Airworthiness
Division
Flight
Operations
Division
1957 | SATA HELPS VICTIMS OF THE CAPELINHOS TRAGEDY
SATA in partnership with Slick Airways provides travel assistance to victims of the Capelinhos
Volcano tragedy, flying them from the Lajes air base to the United States.
| 06
Ground
Operations
Division
ANNUAL REPORT
AND ACCOUNTS
2007
| 07
2007 PERFORMANCE
ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
Operating Activities
2007 was marked by further expansion of the company, with the arrival of a new Airbus
310-300 aircraft, in April.
New routes such as Terceira – Boston, Terceira – Oakland, Terceira – Oporto, Ponta Delgada
– Dublin and other charter operations to the Caribbean, Brazil, Sal and Porto Santo were
added to the existing network.
Overall, 641 more commercial flights were operated and 82,226 more passengers were carried
compared with the previous year. However, the market did not react in the same proportion
as the offer generated, and there was a fall of two percentage points in the load factor,
compared with 2006.
Year
2006
2007
Variation
Flights Operated (No.)
6,498
7,139
+641
Passengers Carried (No.)
847,858
930,084
+82,226
Load factor RPK/ASK (%)
75,18%
73.08%
-2,10 p.p.
Network
Scheduled Domestic
There were two small changes in the scheduled domestic network compared with the
previous year:
1) the Funchal – Oporto – Funchal route was discontinued from 24 January 2007;
2) during the period from 21 June to 30 August 2007 a new route was operated, Terceira
– Oporto – Terceira, outside public service obligations.
Otherwise, the same network pattern and operation rules were maintained, under the
public service obligations and under a code-share arrangement with TAP Portugal, as
was already the case in 2006.
Lisbon – Ponta Delgada – Lisbon
Lisbon – Terceira – Lisbon
1959 | SATA PURCHASES TWA STRUCTURE IN SANTA MARIA
SATA acquires the TWA structure at the airport of Santa Maria, to realise its strategy of
growth and expansion.
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ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
Lisbon – Horta – Lisbon
Lisbon – Santa Maria – Lisbon
Lisbon – Funchal – Lisbon
Oporto – Ponta Delgada – Oporto
Oporto – Funchal – Oporto (discontinued from 24 January 2007)
Funchal – Ponta Delgada – Funchal
Terceira – Oporto – Terceira (from 21 June to 30 August 2007, outside public service
obligations)
The national network reported growth of 4% in the number of passengers carried; however
the load factor fell 1.29 pp. compared with 2006.
Year
2006
2007
Variation
Flights Operated (No.)
4,650
4,719
+69
Passengers Carried (No.)
574,034
594,299
20,265
Load factor (%)
69.84%
68.55%
-1.29 p.p.
European
Among European routes, the destinations Frankfurt, London, Amsterdam and Madrid
were maintained. In the case of London, an additional weekly flight during the period from
June to September was introduced. The city of Dublin was added to SATA Internacional's
map of scheduled routes, from Ponta Delgada, with a weekly flight during the IATA summer
season. The Funchal – Zurich – Funchal route was discontinued at the end of the previous
year and replaced by Funchal – Paris – Funchal, from the IATA summer season 2007,
with great success.
Overall, there was a significant increase in supply, but with modest results in terms of
demand generated.
Year
2006
2007
lights Operated (No.)
3163
96+
80
6,5713
9,533+
2,962
71.83%6
2.26%-
9.57 p.p.
assengers Carried (No.)3
oad factor RPK/ASK (%)
1963 | SATA PURCHASES ITS FIRST DC-3
SATA receives its first DC-3 aircraft, from the Irish company Aer Lingus.
| 09
Variation
ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
North American
In North America, there was also an increase in supply, with the expansion to two new
routes during the summer period, Terceira – Boston and Terceira – Oakland. The operating
model was maintained for charters, with the flights chartered by tour operators from the
SATA Group, Azores Express and SATA Express respectively. This transatlantic operation
comprised the following routes:
Ponta Delgada – Boston – Ponta Delgada
Ponta Delgada – Toronto – Ponta Delgada
Ponta Delgada – Providence – Ponta Delgada
Ponta Delgada – Montreal – Ponta Delgada
Terceira – Toronto – Terceira
Terceira – Boston – Terceira
Terceira – Oakland - Terceira
Lisbon – Boston – Lisbon
Lisbon – Toronto – Lisbon
Oporto – Boston – Oporto (via Ponta Delgada)
Oporto – Toronto – Oporto (or Faro)
Overall, 155 more flights were operated than in the previous year and 16,868 more
passengers were carried, a fall of 3 pp in the load factor having been reported, in comparison
with the previous year.
Year
Flights Operated (No.)
2006
2007
Variation
811
966
+155
Passengers Carried (No.)
128,946
145,814
+16,868
Load factor RPK/ASK (%)
78.24%
75.46
-2.77 p.p.
Charter
For Charter operations in Europe, the traditional series from Funchal to English Provinces,
the French Provinces, the island of Jersey and Dublin were maintained, with connections
between Faro and Dublin during the summer. These operations were joined by two new
routes: Lisbon – Sal – Lisbon, on an annual basis and reinforced in the high season, and
1968 | FRIENDLINESS IS IN THE AIR
The Azorean spirit of the SATA service rides the skies, when in 1968 the company's flights
begin to employ air hostesses, who impress passengers with their attention and friendliness.
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ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
Lisbon – Porto Santo – Lisbon, during the IATA summer season. In the Spring, there were
a weekly operation, Ponta Delgada – Vienna – Ponta Delgada.
Long-haul flights included the continuation of operation between Lisbon and Punta Cana,
reinforced during the high season with two more connections, one to Punta Cana and
the other to Samaná, also in the Dominican Republic. The Brazilian northeast, in particular
the rotation between Porto Seguro and Salvador, from Lisbon, began to operate all year
round. In comparison with the previous year, charter operations also reported a significant
increase in activity, although the load factor recorded a fall of 5 percentage points.
Year
2006
2007
Variation
721
1,058
+337
Passengers Carried (No.)
108,307
150,438
+42,131
Load factor RPK/ASK (%)
86.14%
80.89%
-5.25 p.p.
Flights Operated (No.)
Fleet
Since the introduction of a new A310-300 aircraft, in April 2007, SATA Internacional now
has four Airbus 320-200 and three A310-300.
Length
Span
Height
Speed
Airbus
A310-300
46.66 m
46.90 m
15.80 m
900 km/h
Airbus
A320-200
37.57 m
34.10 m
11.76 m
900 km/h
Altitude
Range
Fuel
No. Passengers
Airbus
A310-300
11,900 m
9,200 km
68,260 Lt.
222
Airbus
A320-200
10,600 m
4,400 km
23,859 Lt.
161
The A320 aircraft flew 4,026 flights, with a total of 9,155.35 block hours, while the A310
fleet flew 3,296 flights, with a duration of 12,041.52 block hours. These figures include
position, training and experience flights.
1969 | SATA REACHES FLORES
Slowly, SATA begins to interconnect the islands of the archipelago, and in 1969 starts
scheduled flights to the island of Flores.
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ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
ACMI charters, in situations of unforeseen immobilisation, totalled 38 flights, with 34.45
block hours.
The following Figure summarises the Company's key performance indicators for the years
2006 and 2007, which illustrate its growth.
Commercial Traffic
2006
2007
Variation
Flights performed
6,498
7,139
+637
Km travelled
12,236,181
14,540,515
+2,304,334
ASK (million)
2332
2,818
+486
RPK (million)
1753
2,059
+306
Load factor RPK/ASK (%)
75.18
73.08
-2.10 p.p.
ATK (million)
315
382
+67
TKP (million)
184
213
+29
Load factor TKP/ATK (%)
58.56
55.68
-2.88 p.p.
Punctuality (%)
69.74
69.38
-0.36 p.p.
Commercial Activities
Continuing to pursue its expansion policy, SATA Internacional launched the scheduled
routes Ponta Delgada/Dublin/Ponta Delgada and Funchal/Paris/Funchal.
In the second case, it was a weekly flight throughout the year. In the case of Ponta
Delgada/Dublin/Ponta Delgada, it was a weekly flight, but only during the IATA summer
season.
On the Funchal/Paris route the results were positive, suggesting a consolidation of the
Company's position in the short term.
Aircraft Handling Activities
Self-Handling – Coordination Lisbon/Funchal/Oporto
The number of self-handled flights (supervision) was 4,987 departures, which corresponds
to growth of 34.4% (including SATA Air Açores flights from Funchal):
1969 | AIRPORT OPENED IN PONTA DELGADA
Nordela Airport, in Ponta Delgada, is opened, with a runway that is 1800 m long and
45 m wide.
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ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
STOPOVERS
2005
2006
2007
% VAR-05
% VAR-06
Funchal SI
1,163
1,191
1,091
2.4%
-8.4%
Funchal SP
0
0
1,117
Lisbon
2,134
2,102
2,354
-1.5%
12.0%
Oporto
380
418
425
10.0%
1.7%
3,677
3,711
4,987
0.9%
34.4%
Total
Training
Various training initiatives were implemented:
-
Training at IATA on components for Apron, Dangerous Goods and Cargo Rates, in
order to permit IATA certification.
-
Continuation of internal training for knowledge consolidation and refreshment,in order
to contain costs, but including mandatory training in accordance with JAR OPS, IATA
and new National regulations.
-
Training on Dangerous Goods in accordance with JAR OPS regulations
-
Initial training for contract workers.
Hiring of Permanent Staff
Staff were hired in the summer at some stopovers, to supplement the winter season staff.
Maintenance Activities
2007 was another year of growth in the SATA Internacional fleet: the aircraft CS-TKN
(MSN: 624) was phased in (April). This aircraft is equipped with 2 Pratt and Whitney
PW4156A-1C engines. As these engines are from a different manufacturer to those in
SATA Internacional's remaining A310 fleet, the Company itself and its line engineers were
required to be certified in this type of engine, and this certification took place in stages
throughout 2007.
In addition to this activity, the following events occurred during 2007:
* ‘C’ Inspections by the maintenance Company hired of following aircraft:
1971 | FAIAL AIRPORT OPENED
Castelo Branco airport opens on the island of Faial, with the first scheduled flights by SATA
arriving in 1972.
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ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
-
C11 CHECK + 5 Y - APR07 - Aircraft CS-TGV
-
4C CHECK + 5 Y – APR07 - Aircraft CS-TKN at the same time as the aircraft's ‘phase in’
-
CS-TKJ – Inspection C6 - OCT/NOV 2007
* Replacement / Removal of Engines/APU/Landing Gear
-
Replacement of CS-TGU landing gears in MAR07 due to end of life.
-
Removal, workshop repair of APU on CS-TGU in MAY07 and subsequent reinstallation.
-
Removal, workshop repair of engine #1 of the CS-TGV S/N: 695489 in MAY07
* MOD 4005-02-A-3101-R02 – Replacement of all tourism class seats on CS-TKM–
JUN07
* Maintenance of the maintenance and engineering agreements with TAP-Air Portugal and
line maintenance with SATA Air Açores, Swiss and Royal International.
Flight Operations
According to an overall analysis of 2007, the planned commercial network was successfully
fulfilled in general. Nevertheless, with the network proposed, similar to that of 2006, this
Department continued to experience crew planning problems, due essentially to staggered
departures and arrivals between the airports of Oporto, Ponta Delgada and Terceira.
To satisfy the increase in in-flight services in the IATA summer season, 50 new cabin crew
members were hired.
Following the commencement of the AIMS, a positive contribution was made to shared
management in the planning of Crews with Sales Department.
Quality and Security
In order to offer a superior standard of service, in 2007 SATA Internacional invested in the
area of quality and security.
1974 | SATA AND THE UNIONS
After the April Revolution in Portugal, all SATA employees become union members.
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ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
Quality Management Bureau
In February 2005, a Quality Management Bureau was set up for the General Directorate
of Operations, with 2 qualified engineers from the Ponta Delgada and Terceira stopovers
being assigned to, with advice from an external consultant, implement the new Project.
Awareness-raising and training activities for various groups within the Company, to identify
and describe existing processes and their interactions, as well as the creation of various
manuals, characterised the activities of this bureau over the last year.
Security Quality Activities
In compliance with the provisions of the National Civil Aviation Security Quality Control
Programme (PNCQSAC) and with Chapter 16 of the SATA Air Açores and SATA Internacional
Security Manuals, it is reported that, in 2007, this Security Bureau monitored the security
quality, as well as security training, which reveals the growing role of this area in the
operations of the two SATA Group airlines.
The initiatives that involved the various members of the security bureau are summarised
under security, auditing and training activities.
Human Resources
… growth of 28% in staff numbers in the last 4 years …
SATA Internacional, on 31 December 2007, had 527 employees, 11% more than in the
previous year, and of these 42.3% are Ground Staff and 67.7% are Plane Staff (223 cabin
crew and 81 engineers). The share of graduates in the company structure was 23.34%.
The average age remained close to 34.
1976 | SATA PROVIDES GROUND HANDLING FOR CONCORDE
The most advanced aircraft in the history of civil aviation, Concorde, makes a stopover
at Santa Maria airport, with ground handling provided by SATA.
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ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
600
600
500
500
400
400
300
300
200
200
100
100
0
2004
2005
2006
2007
Cabin Crew
Flight Officers
Ground Crew
Total - Staff 31Dec
0
Staff Qualifications
400
400
300
300
200
200
100
100
0
2004
2005
Higher Education
2006
Secondary Education
Basic Education
1977 | 1 MILLION PASSENGERS
An increasing number of people use SATA flights to link what the sea separates,
and in 1977 SATA welcomes its 1 millionth passenger.
| 16
2007
0
Total as at 31 Dec
CC FO GC
Staff as at 31 December
ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
SATA Internacional Recruitment Policy maintains the need to hire staff on fixed-term
contracts to respond to the seasonality of the company's activity.
In 2007 there was a considerable rise of 70% in the number of temporary staff, justified
by the need to reinforce, during the IATA summer season, the crew base in Ponta Delgada,
Lisbon and Funchal, with the seasonal recruitment of 76 cabin crew members. 23 operators
were also hired for the Call Centre.
However, there has been a significant increase of 40% in the number of contracts without
term in the last 4 years (information from 31 December), increasing 6% in 2007 compared
with 2006.
Variation in Staff (Breakdown by contract type as at 31 Dec)
100%
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
2004
Fixed-Term Contract
2005
2006
2007
0%
Contract without Term
Training and Development
Investment in human capital
… a constant effort is made to provide the company with the appropriate human resources,
so that it can be a high quality, motivated workforce, with growing levels of productivity …
Selection and Recruitment
… in Ponta Delgada, Lisbon and Funchal. A significant increase compared with 2006.
1982 | PICO AIRPORT OPENED
Continuing the process of interconnecting all islands by air, Pico airport is opened.
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ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
In 2007, SATA Internacional organised 9 selection procedures (3 procedures in 2006),
involving a total of 473 applicants (114 applicants in 2006). 116 trainees resulted from
these procedures (43 trainees in 2006), and € 51,447 were invested in initial training. This
significant increase, compared with 2006, is justified by the need to implement 2 selection
procedures for the Call Centre that involved a total of 145 applicants, of whom 32 were
selected for Initial training and 23 were hired. 3 selection procedures for cabin crew were
held, to be based at Ponta Delgada, Lisbon and Funchal, involving a total of 278 applicants,
of which 88 were selected for training and 76 were hired.
Vocational Training
In its ongoing effort to maximise the efficiency of its human resources through the acquisition
of knowledge and vocational skills, the company trained 1,532 employees in 2007, holding
336 training courses (22% more than in 2006), totalling almost 27,025 hours (44% more
than in 2006). This increase occurred mainly in the area of Flight Operations.
Since 2004 there has been a steady fall in training costs (50% less in 2006 compared
with 2003). However, in 2007, justified by the increase of 20% in training courses compared
with 2006, there has been a significant increase in Training costs of 71% compared with
2006.
Training
30,000
25,000
1,500
20,000
1,000
15,000
10,000
500
0
5,000
2004
Courses held
2005
Participants
2006
2007
Hours of training
1983 | SÃO JORGE AIRPORT OPENED
Another step in bringing together the whole archipelago with the opening of São Jorge
airport.
| 18
0
No. of Hours
No. of Staff
No. of Courses
2,000
ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
Total training costs
thousand euros
1,500
1,000
500
0
2004
2005
2006
2007
Due to a consolidated practice of compliance with standards and legislation, the Flight
Operations Division (DOV) and Continuous Airworthiness Division (DCA) are the two areas
with the most significant investment in training, the DOV being responsible for 80% of
total investment in training. To justify part of the increase in values in 2007, we have the
initial qualification of 15 Airbus 310 pilots and 10 A320 pilots. The qualifications of these
25 pilots represented an investment of € 376,450.
The DCA, with investment of € 36,900, is the second most represented area in total
training costs, justified by the continuous effort to qualify Aircraft Maintenance Personnel
(AMP) in A310 and A320 equipment.
In the remaining areas, investment was made in training totalling € 148,537, of which
€ 118,998 were in Support Areas, in particular Human Resources, Tax, Accounting and
Information Systems.
Areas with highest Training costs (EUR)
Other
118,998
13%
DGC
25,239
3%
DOT
4,300
0.5%
DCA
36,900
4%
DOV
740,565
80%
1987 | SATA RENAMED SATA AIR AÇORES
SATA is renamed SATA Air Açores and in the same year it is awarded the silver medal for
tourism merit.
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ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
Information Systems
2007 for Information Systems was marked above all by two different major projects, one
focusing on administrative and financial procedures (MySAP ERP) and the other with a
significant impact on the service provided to our customers, namely frequent flyers (Crane).
The MySAP ERP project was soon established as a true process of change for SATA that
can be considered quite ambitious, since its aim is to cover all the major functional back
office areas: Financial (General Accounting, Accounts Payable, Accounts Receivable,
Treasury and Assets), Human Resources (Personnel Administration, Salary Processing,
Training, Recruitment, Assessment and Performance and Occupational Medicine), Logistics
(Supplies and Warehouse Management), Sales and Invoicing and Ground Equipment
Maintenance, as well as advancing at the same time with a Document Management
process (accounting documents) and an Attendance Management process.
Decision taking for the implementation of MySAP ERP can be considered strategic, if not
crucial, for the future of all the SATA companies, since, while it is not a ‘business’ application,
it can guarantee the proper functioning of business support processes.
The first transaction using this new application was performed on 1 January 2007 and
the remaining modules were phased into production over the following months. This
process of change can be considered to have been successfully concluded, although
there is still room for consolidation of processes in the future.
Electronic Tickets were launched by SATA in 2005, initially introduced for travel agencies
and then (last quarter of 2006) launched in full strength for all SATA agencies.
During 2007 the Interline eTicket (IET) process was implemented with our main business
partner, thus extending the services available associated with the existing code share.
With the implementation of this functionality, SATA is now 100% eligible with regard to the
IATA adoption of Electronic Ticketing under its ‘Simplifying the Business’ (StB) initiative.
No less significant was the expansion of eligibility to issue Electronic Tickets to routes to
and from the United States of America, this market now enjoying all associated functionalities.
1989 | ATPs ARRIVE IN THE AZORES
SATA acquires its first ATPs, which continue to guarantee air connections within the
archipelago today.
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ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
In May 2007 the Crane project went live and was soon introduced in all the areas of the
company in a way that can be considered non-intrusive for business procedures in
progress.
This change resulted from the need felt to adapt the support application to the business
procedures associated with the management of members of Clube SATA, and all the
objectives of this project were achieved with the entry into production of this application.
The value generated for members of the club is considerably higher than with the previous
solution and a platform has been created for the progress and development of the club.
Internet sales, as a direct sales channel, play an increasingly important role in the life
of companies that seek to be competitive in their market, both as a matter of processing
efficiency and as a means to achieve greater presence and market penetration. Airline
companies are not uninvolved with this technology, and the success of both low-cost and
traditional airlines is directly related to how they sell their products on the Internet.
To provide SATA with an internet sales channel that allows it to achieve the group's sales
objectives, a project is being organised that has been given the name SOBE – SATA
Booking Engine.
The plan for this project was the execution of a series of activities with an expected duration
of more than 1 year and the main functionalities are due to be made available in 2008.
The first stage of this project was first developed in December 2007 and is expected to
be concluded in May 2008. It will permit full online reservations and payments and the
issuing of electronic tickets.
1990 | CHANGE AND EXPANSION
SATA experiences a historical occasion: the era of the AVRO HS 748 comes to an end,
twenty years later; it joins the International Air Transport Association – IATA – and the
European Regional Airlines Association – ERA; it acquires the Canadian Pacific Airlines
offices in Lisbon; and receives two ATP aircraft.
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ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
Economic and Financial Performance
Economic Situation
Performance
Net profit (€k)
4,000
3,000
2,000
1,000
0
Unit: €k
Operating income
2003
2004
2007
2005
2006
2006
2005
2007
2004
2003
167,407
143,647
131,004
119,897
108,662
(167,716)
(142,682)
(132,118)
(117,565)
(105,912)
(309)
965
(1,114)
2,332
2,750
Financial profit
(84)
(330)
770
(584)
(1,068)
Current profit
(393)
635
(344)
1,748
1,682
2,558
1,181
818
542
(114)
Operating costs
Operating profit
Extraordinary profit
Tax on profit for the year
498
(72)
(69)
(1)
(1)
Net profit for the year
2,663
1,744
404
2,289
1,567
1994 | SATA AIR AÇORES AWARDED MEDAL OF HONOUR
As recognition for the quality of its flights and its operating method, SATA Air Açores
is awarded a coveted medal of honour by the International Civil Aviation Organization (ICAO).
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ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
For the sixth year running, the Company achieved a Net Profit (€k 2,663), due essentially
to the increase in revenue.
Total operating income representing more than 95.65% of the Total Income was up
€k 23,760 on the figure for the previous year. This increase is due, in part, to the performance
of Income generated by the growth in scheduled traffic and also by the significant increase
in charter operations.
The income structure highlights the growing importance of charter operations, representing
around 48%, a fact that reflects in the strategic orientation of the Company aimed at
improving and diversifying its operations, reducing dependence on the PDL/LIS/PDL route.
Operating Costs and Income
Unit: €k (thousand euros)
2007
2006
2005
Scheduled Passengers and Cargo
75,705
70,523
68,636
Non-scheduled Passengers and Cargo
77,301
67,066
55,722
Total Passengers and Cargo
153,006
137,589
124,358
Compensatory payments
6,754
5,592
6,278
Other operating income
7,647
466
350
Operating income
167,407
143,647
131,004
External supplies and services
130,658
115,684
109,510
Personnel costs
20,276
17,001
16,011
Other operating costs
16,782
9,997
6,597
Operating costs
167,716
142,682
132,118
Operating profit
(309)
965
(1,114)
Operating Costs increased by 17.5% compared with the previous year, maintaining a level
of activity around 9.6% higher of air transport operations.
1995 | SATA CONTINUES TO GROW
SATA takes another step towards internationalisation, with its first charter flight outside
Portugal.
| 23
ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
Operating income 2007
Operating income 2006
4% 5%
4% 0%
91%
Total Passengers and Cargo
Compensatory payments
Other operating income
Operating costs 2007
96%
Total Passengers and Cargo
Compensatory payments
Other operating income
Operating costs 2006
12% 10%
4% 0%
78%
External Supplies and supplies
Personnel costs
Other operating costs
96%
External Supplies and supplies
Personnel costs
Other operating costs
Given the realisation levels in 2006, External supplies and services recorded an increase
of €k 14,974, representing an increase of 12.9%, due above all to the variable component
associated with operations. Personnel costs increased by €k 3,275, 19.26% higher than
the previous year, justified by the increase in activities and by salary increases.
1998 | SATA AWARDED AOC
SATA Internacional, with a Boeing 737, begins to diversify SATA destinations and is awarded
its AOC (Air Operator's Certificate), finally entering the competitive world of civil aviation.
| 24
ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
Financial Profit/Loss
The financial loss was €k 84, €k 246 less than in 2006. The performance of the financial
function was motivated above all by the foreign exchange differences in payments and
receipts in 2007.
EBITDAR
The free cash flow available for investments measured by the EBITDAR (Earnings Before
Interest, Taxes, Depreciation, Amortization, and Restructuring or Lease Costs) was
€k 15,853, higher than €k 2,598 of the previous year.
Unit: €k (thousand euros)
EBITDAR
2007
2006
2005
15,853
13,255
13,611
Financial Situation
The Company's Net Assets reported an increase of €k 16,539, which represented a
positive variation of 28.9% reflecting to a great extent the effect of:
iii) Increase of €k 3,826 on Fixed Assets;
iv) Increase of €k 9,759 in bank deposits
Changes in Net Assets
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2003
2004
2005
2006
2007
1999 | SATA GUARANTEES NEW ROUTES
SATA Internacional wins the concession for routes between Ponta Delgada and the cities
of Lisbon, Oporto and Funchal, with a Boeing 737 and, subsequently, the new A310.
| 25
ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
Changes in Net Worth
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2003
2004
2005
2006
2007
ECONOMIC AND FINANCIAL INDICATORS
The analysis of economic and financial indicators shows once again a significant increase
in the Net Worth of the Company which reached €k 14,271 in 2007, a figure that represents
an increase of around 22.9%, in other words €k 2,663.
Ratios
2007
2006
2005
Operating Profitability
-0.18%
0.67%
-0.85%
Return on Equity
18.66%
15.02%
4.10%
Return on Assets
3.62%
3.05%
0.79%
Equity to Debt Ratio
24.04%
25.52%
23.82%
Debt
80.62%
79.67%
80.76%
Equity to Assets Ratio
19.38%
20.33%
19.24%
Operating profitability fell due to the increase in Operating costs compared with Operating
income.
The Return on Equity shows an increase, affected by the high Net Profit for the year.
2000 | FLIGHTS TO NORTH AMERICA
SATA starts scheduled flights to the United States of America and Canada, strengthening
ties with the Azores Diaspora.
| 26
ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
The Equity to Assets Ratio was 19.38%, with a fall of 0.95 pp compared with 2006.
Equally, the Equity to Debt Ratio of 24.04% shows a reduction of 1.48 pp.
Changes in Liabilities
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2003
2004
2005
2006
2007
The Company's Liabilities increased by 30.5%, in other words, a further €k 13,875, due
essentially to the creation of Provisions for other risks and charges, to face future
contingencies.
Contribution to the Revenue of the State and the Region
The contribution of SATA Internacional and its employees to the Revenue of the Autonomous
Region of the Azores rose to 6,599,188 Euros, divided as follows:
Social Security Contribution
Company
Employees
Total
2,842,535
1,320,058
4,162,593
2,307,670
2,307,670
3,627,728
6,599,188
Personal Income Tax
Corporation Tax
128,925
2,971,460
128,925
2004 | NEW EQUIPMENT
SATA receives two new Airbus A320 with which it will increase flights to Europe.
| 27
ANNUAL REPORT
AND ACCOUNTS
2007
2007 PERFORMANCE
Proposal for Appropriation of Profit
In accordance with legal and statutory provisions, the following application of net profit
calculated in the year of 2007, amounting to € 2,662,895.74, is proposed.
- Legal Reserve
€ 133,144.79
- Retained Earnings
€ 2,529,750.95
Ponta Delgada, 14 March 2008
THE BOARD OF DIRECTORS
António José
Vasconcelos Franco
Gomes
de Menezes
(Chairman)
Luísa Maria Estrela
Rego Miranda
Schanderl
(Director)
António Maurício do
Couto Tavares de
Sousa
(Director)
Luís Filipe Soares
Borges da Silveira
(Director)
2005 | NEW ROUTES
SATA launches new routes to Europe. London and Madrid are the airline company's new
commitments for the IATA summer season.
| 28
ANNUAL REPORT
AND ACCOUNTS
2007
| 29
FINANCIAL STATEMENTS
ANNUAL REPORT
AND ACCOUNTS
2007
FINANCIAL STATEMENTS
BALANCE SHEETS AS AT 31 DECEMBER 2007 AND 2006
SATA - SOCIEDADE DE TRANSPORTES AÉREOS, SGPS, S.A.
(Amounts in euros)
2007
Assets
FIXED ASSETS:
Tangible fixed assets:
Plant and machinery
Vehicles
Tools and utensils
Fixtures and fittings
Outras imobilizações corpóreas
Other tangible fixed assets
Advances on tangible fixed assets
CURRENT ASSETS:
Inventory:
Raw materials and consumables
Notes
Gross
Depreciation
assets and adjustments
2006
Net
assets
Net
assets
10
10
10
10
10
33,035,590
137,015
77,046
709,084
739,978
(14,649,209)
(110,981)
(64,473)
(544,256)
(526,001)
18,386,381
26,034
12,573
164,828
213,977
12,077,297
37,309
31,311
132,132
310,638
10
-
-
-
2,389,458
34,698,713
(15,894,920)
18,803,793
14,978,145
513,602
(103,753)
409,849
390,955
10,463,818
79,992
646,937
2,040,908
331,679
22,798,606
36,361,940
(79,992)
(79,992)
10,463,818
646,937
2,040,908
331,679
22,798,606
36,281,948
8,719,360
213,300
3,545,260
1,049,042
22,180,690
35,707,652
21 e 41
Accounts receivable
- Short term:
Trade debtors
Doubtful debts
21 e 23
Advances to suppliers
Group companies
16
Taxes and contributions recoverable
48
Other debtors
49
Banks and cash:
Bank deposits
Cash in hand
55
55
14,611,142
98
14,611,240
-
14,611,142
98
14,611,240
4,852,291
9,143
4,861,434
ACCRUALS AND DEFERRALS:
Accrued income
Deferred costs
Deferred tax assets
50
50
6
837,688
813,154
1,829,814
-
837,688
813,154
1,829,814
115,520
1,035,135
-
3,480,656
(15,894,920)
(183,745)
(16,078,665)
3,480,656
1,150,655
73,587,486
57,088,841
Total depreciation
Total adjustments
Total assets
89,666,151
The notes form an integral part of the balance sheet as at 31 December 2007.
THE CHARTERED ACCOUNTANT
António Jorge Ferreira da Silva
| 30
ANNUAL REPORT
AND ACCOUNTS
2007
FINANCIAL STATEMENTS
Equity and liabilities
Notes
2007
2006
36, 37 e 40
5,000,000
5,000,000
Supplementary capital contributions
40
17,446,294
17,446,294
Legal reserve
40
358,478
271,294
Free reserves
40
329,178
329,178
Retained earnings
40
(11,525,643)
(13,182,133)
Net profit for the year
40
EQUITY:
Capital
2,662,896
1,743,674
14,271,203
11,608,307
34
15,750,773
6,184,162
15
6,604,340
2,539,559
11,929,109
11,745,376
15
5,972,366
4,580,500
161,452
-
Group companies
16
8,776,172
11,712,702
Taxes and contributions payable
48
1,653,942
435,261
Other creditors
51
1,567,472
2,743,297
Total equity
PROVISIONS:
Other provisions
LIABILITIES:
Accounts payable - Medium and long term:
Trade accounts payable, fixed assets
Accounts payable - Short Term:
Trade creditors
Trade accounts payable, fixed assets
Advances from customers
Advances from customers (tickets to be used)
3.e)
2,858,805
1,614,283
32,919,318
32,831,419
3,255,942
3,149,595
ACCRUALS AND DEFERRALS:
Accrued costs
50
Deferred income
50
785,910
775,799
4,041,852
3,925,394
Total liabilities
59,316,283
45,480,534
Total equity and liabilities
73,587,486
57,088,841
The notes form an integral part of the balance sheet as at 31 December 2007.
THE BOARD OF DIRECTORS
António José Vasconcelos
Franco Gomes
de Menezes
(Chairman)
| 31
Luísa Maria Estrela Rego
Miranda Schanderl
(Director)
António Maurício do Couto
Tavares de Sousa
(Director)
Luís Filipe Soares Borges
da Silveira
(Director)
ANNUAL REPORT
AND ACCOUNTS
2007
FINANCIAL STATEMENTS
PROFIT AND LOSS ACCOUNTS BY NATURE FOR THE YEARS
ENDED 31 DECEMBER 2007 AND 2006
SATA - SOCIEDADE DE TRANSPORTES AÉREOS, SGPS, S.A.
(Amounts in euros)
COSTS AND LOSSES
Notes
2007
2006
Cost of materials consumed
41
972,600
823,703
External supplies and services
52
130,657,790
115,684,105
Personnel costs:
Salaries
15,453,341
Social charges
4,822,545
13,152,743
20,275,886
3,848,738
Depreciation of tangible fixed assets
10
6,138,705
5,141,585
Adjustments
21
5,963
39,309
Provisions
34
9,630,602
Taxes
13,630
Other operating expenses
20,857
(A)
Interest payable and similar charges
45
46
(E)
Income tax for the year
(G)
Net profit for the year
6
3,951.10
9,132,001
30,470
34,487
167,716,033
(C)
Extraordinary expenses
15,775,270
17,001,481
9,928
40,398
142,681,688
4,904,188
2,616,482
172,620,221
145,298,170
262,026
152,438
172,882,247
145,450,608
(497,462)
71,986
172,384,785
145,522,594
2,662,896
1,743,674
175,047,681
147,266,268
The notes form an integral part of the profit and loss account by nature for the year ended 31 December 2007.
THE CHARTERED ACCOUNTANT
António Jorge Ferreira da Silva
| 32
ANNUAL REPORT
AND ACCOUNTS
2007
FINANCIAL STATEMENTS
INCOME AND GAINS
Services rendered
Notes
2007
2006
44
160,310,989
137,589,731
Supplementary income
Operating subsidies
323,789
409,589
3.f) e 53
6,753,981
5,592,447
21
18,604
Reversals of depreciation
and adjustments
(B)
55,076
6,057,112
167,407,363
143,646,843
4,820,390
2,286,753
172,227,753
145,933,596
2,819,928
1,332,672
175,047,681
147,266,268
(B) - (A)
(308,670)
965,155
(D-B) - (C-A)
(83,798)
(329,729)
Interest receivable and similar income
45
(D)
Extraordinary income
46
(F)
Operating profit/loss:
Financial profit/loss:
7,096,374
Current profit/loss:
(D) - (C)
(392,468)
635,426
Profit before taxes:
(F) - (E)
2,165,434
1,815,660
Net profit for the year:
(F) - (G)
2,662,896
1,743,674
The notes form an integral part of the profit and loss account by nature for the year ended 31 December 2007.
THE BOARD OF DIRECTORS
António José Vasconcelos
Franco Gomes
de Menezes
(Chairman)
Luísa Maria Estrela Rego
Miranda Schanderl
(Director)
2005 | SATA AERÓDROMOS CREATED
The latest SATA group company, SATA Aeródromos, is set up to manage and maintain
4 of the 9 aerodromes in the Azores.
SATA Aeródromos designs and implements the new Aerodromes on the islands of Pico,
Flores, São Jorge and Graciosa.
| 33
António Maurício do Couto
Tavares de Sousa
(Director)
Luís Filipe Soares Borges
da Silveira
(Director)
ANNUAL REPORT
AND ACCOUNTS
2007
FINANCIAL STATEMENTS
PROFIT AND LOSS ACCOUNTS BY FUNCTION FOR THE FINANCIAL
YEARS ENDED 31 DECEMBER 2007 AND 2006
SATA - SOCIEDADE DE TRANSPORTES AÉREOS, SGPS, S.A.
(Amounts in euros)
Notes
2007
2006
Goods sold and services rendered
44
160,310,989
137,589,731
Cost of goods sold and services rendered
56
(138,444,101)
(112,860,672)
21,866,888
24,729,059
Gross profit
Other operating income
56
9,916,302
7,568,493
Distribution costs
56
(11,826,804)
(18,283,901)
Administrative costs
56
(1,649,001)
(2,395,184)
Other operating expenses
56
(16,074,088)
(9,295,753)
2,233,297
2,322,714
(67,863)
(507,054)
2,165,434
1,815,660
497,462
(71,986)
2,662,896
1,743,674
2,663
1,744
Operating profit
Net interest
Current profit
Tax on current profit
6
Net profit
Earnings per share
The notes form an integral part of the profit and loss account by function for the year ended 31 December 2007.
THE CHARTERED ACCOUNTANT
António Jorge Ferreira da Silva
THE BOARD OF DIRECTORS
António José Vasconcelos
Franco Gomes
de Menezes
(Chairman)
| 34
Luísa Maria Estrela Rego
Miranda Schanderl
(Director)
António Maurício do Couto
Tavares de Sousa
(Director)
Luís Filipe Soares Borges
da Silveira
(Director)
ANNUAL REPORT
AND ACCOUNTS
2007
FINANCIAL STATEMENTS
CASH FLOW STATEMENTS FOR THE YEARS ENDED 31 DECEMBER
2007 AND 2006
SATA - SOCIEDADE DE TRANSPORTES AÉREOS, SGPS, S.A.
(Amounts in euros)
OPERATING ACTIVITIES
Net profit for the year
Depreciation
Changes in provisions and adjustments
Financial profit
Deferred taxes
Gains on sales of fixed assets
Losses on sales of fixed assets
Increase in accounts receivable
(Increase)/Decrease in inventory
Increase in accounts payable
(Increase)/Decrease in deferred costs
(Increase)/Decrease in deferred income
Increase in accrued income
Increase/(Decrease) in accrued costs
Net cash from operating activities (1)
Notes
2007
2006
40
10
21 e 34
2,662,896
6,138,705
9,540,071
83,798
(1,829,814)
(547,756)
(18,894)
2,854,780
221,981
10,111
(103,023)
106,347
19,119,202
1,743,674
5,141,585
3,929,801
329,729
(1,164)
6,547
(5,461,516)
14,202
5,059,835
(158,137)
(295,250)
89,928
943,734
11,342,968
312,308
312,308
1,117
171,381
172,498
(1,908,174)
(1,595,866)
(2,542,778)
(2,370,280)
(6,758,279)
(999,316)
(7,757,595)
9,765,741
15,935
4,861,434
14,611,240
(5,585,720)
(679,819)
(6,265,539)
2,707,149
(178,709)
1,975,576
4,861,434
INVESTMENT ACTIVITIES
Receipts relating to:
Tangible fixed assets
Interest receivable and similar income
Payments relating to:
Tangible fixed assets
Net cash from investing activities (2)
FINANCING ACTIVITIES
Payments relating to:
Depreciation of finance lease agreements
Interest payable and similar charges
Net cash from financing activities (3)
Change in cash and cash equivalents (4)=(1)+(2)+(3)
Effect of exchange differences
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at end of the period
45
55
55
The notes form an integral part of the cash flow statements for the year ended 31 December 2007.
THE CHARTERED ACCOUNTANT
António Jorge Ferreira da Silva
THE BOARD OF DIRECTORS
António José Vasconcelos
Franco Gomes
de Menezes
(Chairman)
| 35
Luísa Maria Estrela Rego
Miranda Schanderl
(Director)
António Maurício do Couto
Tavares de Sousa
(Director)
Luís Filipe Soares Borges
da Silveira
(Director)
ANNUAL REPORT
AND ACCOUNTS
2007
| 36
NOTES TO THE FINANCIAL STATEMENTS
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2007
SATA - SOCIEDADE DE TRANSPORTES AÉREOS, SGPS, S.A.
(Amounts in euros - €)
INTRODUCTORY NOTE
SATA Internacional – Serviços e Transportes Aéreos, S.A. (‘Company’ or ‘SATA Internacional’)
was incorporated on 10 December 1990, and was known as Oceanair – Transportes
Aéreos Regionais, S.A. until 20 February 1998.
The Company is a limited company, with registered office at Avenida Infante D. Henrique,
in Ponta Delgada, and has as its corporate purpose the operation of commercial, scheduled
and non-scheduled air transport of passengers and their baggage, cargo and mail.
In December 2006, the Company was awarded the contract for the operation of public
service routes between the Mainland and the Autonomous Region of the Azores and
between the Azores and the Autonomous Region of Madeira, on a code share basis with
TAP for the period between 1 January and 31 December 2007.
As at 31 December 2007, the Company operated with four Airbus A310-304 aircraft, of
which three under lease agreements and the fourth under an operating lease, as well as
three Airbus A320 aircraft under operating leases (Note 54).
The notes that follow are in keeping with the sequential numbering as set forth in the
Official Chart of Accounts. Notes not included herein are not applicable to the Company
or are not relevant to the understanding of the financial statements.
3. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING PRINCIPLES
The accompanying financial statements were prepared on the going concern basis
from the accounting books and records of the Company, in accordance with generally
accepted accounting principles in Portugal.
2007 – SATA AND THE ARCHIPELAGO OF MADEIRA
At the request of the Portuguese Government, SATA Air Açores increases the scope of its
role in the Atlantic islands, ensuring the Funchal – Porto Santo route.
It will also offer charter flights to Las Palmas during the IATA summer season.
| 37
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
The main accounting principles used in the preparation of the financial statements
were the following:
a) Tangible fixed assets
Flight equipment
The flight equipment, acquired second hand, is recorded in the balance sheet at
cost. Depreciations are calculated on cost less residual value (10% of the cost),
on a straight-line basis and from the month of acquisition or commissioning, during
the remaining useful life of the aircraft.
Other tangible fixed assets
Other tangible fixed assets are stated at cost.
Depreciation is calculated on a straight-line basis, from the month of acquisition
or commissioning, and determined based on the estimated useful life of the assets,
as follows:
Years of useful life
Plant and machinery
5-10
Vehicles
7
Tools and utensils
6
Fixtures and fittings
4
Other tangible fixed assets
3-8
Repairs and routine maintenance costs are recorded as costs of the financial year
to which they refer.
b) Leases
Fixed assets acquired by way of finance lease agreements as well as the corre­
sponding liabilities are calculated using the financial method. According to this
method the cost of the asset is recorded in tangible assets, the corresponding
liability is recorded under liabilities and the interest included in the value of the lease
2007 | SATA ACQUIRES TWO NEW AIRCRAFT
A British Aerospace ATP and one new Airbus A310 arrive at São Miguel and are named on
15 June, the day the company celebrates its 60th anniversary.
| 38
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
payments and the depreciation of the assets are recorded as costs in the profit
and loss account for the year to which they refer.
Lease payments in respect of operating lease agreements are stated at cost as
incurred.
c) Inventory
Goods are valued at cost, using the average cost method, which is lower than their
market value.
d) Accruals basis
The Company records revenue and expenditure on an accruals basis whereby
revenue and expenditure are recorded when generated, regardless of when they
are received or paid. The differences between the amounts received and paid and
the corresponding income and expenses are recorded under ‘Accruals and deferrals’
(Note 50).
e) Recognition of transport revenue
The value of the sale of passenger transport is recorded as a liability at the time
of sale in ‘Advances from customers’. When the transport is made, the sale revenue
is transferred from ‘Advances from customers’ to revenue for the year, if provided
by the Company, or transferred to accounts payable, if the transport is made by
another airline company.
f) Financial compensation for public service obligations
The financial compensation awarded by the Portuguese State for public service
obligations are recognised in the period in which their entitlement originates and
are recorded in operating subsidies. This financial compensation is calculated in
accordance with the concession contracts for the scheduled airline services
between Ponta Delgada and Lisbon, between Ponta Delgada and Oporto and
between Ponta Delgada and Funchal (Introductory Note), by reference to number
of passengers transported who are resident in the Autonomous Regions.
2007 | SHUTTLE SERVICE TO EUROPE
Increase in the frequency of flights to London and new routes to Dublin and Paris. SATA
Internacional links the Archipelagos of Madeira and Azores to Europe.
| 39
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
g) Maintenance expenses
The Company records as costs for the year expenses to be incurred in the future
with general overhauls of aircraft, which are recorded in the profit and loss account
for the years by reference to the flight hour costs of each aircraft, under the
maintenance agreement, which establishes the payment of a fixed amount per
flight hour for each aircraft (Note 34).
h) Assets and liabilities in foreign currencies
Assets and liabilities in foreign currencies as at 31 December 2007 were converted
into Euros using the exchange rates in effect on that date, as follows:
USD
0.6798
GBP
1.3578
CAD
0.6944
Exchange rate differences, favourable and unfavourable, resulting from differences
between exchange rates applicable at the transaction date and those at the date
of collection, payment or on the balance sheet date are recorded as income and
costs in the profit and loss account.
i)
Deferred taxes assets
Deferred taxes refer to temporary differences between the values of assets and
liabilities for accounting purposes and their respective values for taxation purposes.
Deferred tax assets and liabilities are calculated and evaluated annually using the
taxation rates that are expected to be applicable on the date of the reversion of
the temporary differences.
Deferred tax assets are recorded exclusively when there are reasonable expectations
of sufficient future taxable profit against which they can be utilised. At the end of
each reporting period, a review is made of the temporary differences underlying
deferred tax assets with a view to recognising deferred tax assets not previously
recorded because the conditions to do so were not then extant and/or to reduce
2007 - SATA TODAY
The SATA Group is today an air transport group comprising two companies: SATA Air Açores
and SATA Internacional, two tour operators and a company that manages several aerodromes.
It operates more than 18,000 flights a year, and takes the Atlantic spirit to 50 destinations
throughout the world …
This is the result of the dedication of more than 1200 employees who work every day so
that with SATA There is Something Different in the Air.
| 40
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
the amount of deferred tax assets recorded in the light of present expectations for
their future recovery.
The main temporary differences and their effect on the financial statements for the
year ended 31 December 2007 are described in Note 6.
6. TAXES
According to legislation in force, tax returns are subject to review and correction
by the tax authorities during a period of four years (ten years for Social Security
until 2000, inclusive, and five years since 2001). Therefore the Company’s tax
returns for 2004 to 2007 may still be subject to review.
The Company's Board of Directors believes that any corrections due to re­
views/inspections by tax authorities of those tax returns will not have a significant
effect on the financial statements as at 31 December 2007.
Corporation tax (IRC) recorded as costs for the year ended 31 December 2007
is corrected by the effect of accounting for deferred taxes, as referred to in Note
3.i). The main temporary differences between the values calculated and taxable
on 31 December 2007 and the corresponding deferred tax assets and their effects
on the profit for 2007 are as follows:
Description
(Note 34)
Rate
Tax
Non-tax deductible provisions
9,630,602
19.00%
1,829,814
With the approval of the Portuguese Local Finances Act, municipalities may vote
each year to charge ‘Derrama’ (municipal surcharge), up to a maximum limit of
1.5% on the taxable profit not free from corporation tax (IRC). Given that approval
shall take effect from 1 January 2007, the amount of deferred tax assets and
liabilities is calculated based on a maximum rate of 19% (17.5% of taxable income
and 1.5% of ‘Derrama’).
As at 31 December 2007, the amount recorded in income tax is as follows:
Current tax (Note 48)
Deferred tax
1,332,352
(1,829,814)
(497,462)
| 41
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
7. AVERAGE NUMBER OF EMPLOYEES
During the years 2007 and 2006, the average number of employees working for
the Company was 524 and 463, respectively.
10. CHANGES IN FIXED ASSETS
During the year ended 31 December 2007, changes in the values of tangible fixed
assets, as well as in their accumulated depreciation, were as follows:
Gross assets
Headings
Opening
balance
Increases
Disposals
and write-offs
Transfers
Closing
balance
20,795,291
9,870,376
(19,535)
2,389,458
33,035,590
Tangible fixed assets:
Plant and machinery
Vehicles
137,015
-
-
-
137,015
Tools and utensils
77,046
-
-
-
77,046
Fixtures and fittings
627,749
93,403
(12,068)
-
709,084
Other tangible fixed assets
739,191
787
-
-
739,978
2,389,458
-
-
(2,389,458)
-
24,765,750
9,964,566
(31,603)
-
34,698,713
Advances on tang,
fixed assets
Accumulated depreciation
Headings
Opening balance
Increases
Disposals and write-offs Closing balance
8,717,994
5,950,750
(19,535)
14,649,209
99,706
11,275
-
110,981
Tangible fixed assets:
Plant and machinery
Vehicles
Tools and utensils
45,735
18,738
-
64,473
Fixtures and fittings
495,617
60,495
(11,855)
544,257
Other tangible fixed assets
428,553
97,447
-
526,000
9,787,605
6,138,705
(31,390)
15,894,920
The increase in ‘Plant and machinery’ of € 12,259,834, which includes additions
for the year and transfers of fixed assets in progress of € 9,870,365 and € 2,389,458,
respectively, refers essentially to the acquisition of an Airbus A 310-325 aircraft
through a lease agreement, for the sum of € 9,488,570 (Note 15) and major repairs
to TGU and TGV aircraft engines, of approximately € 2,630,000.
| 42
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
15. FINANCE LEASES
As at 31 December 2007, the Company held the following assets through lease
agreements:
Description
Cost
Depreciation
Net
Avião A310-304 (TGU)
12,239,775
7,240,413
4,999,362
Avião A310-304 (TGV)
9,484,338
4,733,369
4,750,969
Avião A310-325 (TKN) (Note 10)
9,488,570
1,423,285
8,065,285
31,212,683
13,397,067
17,815,616
As disclosed in Note 3.b), the Company uses the financial method to record finance
lease agreements. As at 31 December 2007, the liabilities of the Company as
lessee were as follows:
Capital
Interest due
Total
3,175,880
336,641
3,512,521
2009
922,992
278,267
1,201,259
2010
965,346
235,913
1,201,259
2011
1,009,644
191,615
1,201,259
2012 and following
3,706,358
258,726
3,965,084
Short term:
2008
Medium and long term:
6,604,340
964,521
7,568,861
9,780,220
1,301,162
11,081,382
16. GROUP COMPANIES
Balances and transactions with group companies in the year ended 31 December
2007 are as follows:
| 43
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
Balances
Customers
Group
companies
(debit balance)
Accrued
income
Suppliers
Group
companies
(credit balance)
115,253
-
716,199
156,379
8,776,172
Sata Gestão Aeródromos
-
99,816
-
-
-
Sata Express (EUA)
-
247,782
-
-
-
Sata Express (Canadá)
-
1,693,310
-
-
-
115,253
2,040,908
716,199
156,379
8,776,172
Sata Air Açores
Transactions
External supplies
and services
Services rendered
de serviços
Financial income
(Note 45)
7,471,026
696,868
716,199
Sata Gestão Aeródromos
-
67,572
-
Sata Express (EUA)
-
16,078,977
-
Sata Air Açores
Sata Express (Canadá)
-
20,242,868
-
7,471,026
37,086,285
716,199
21. ADJUSTMENTS TO THE VALUE OF CURRENT ASSETS
In the year ended 31 December 2007, the following changes in adjustments to
current assets occurred:
Headings
Opening balance
Increases
Reversals
Closing Utilised
Balance
Ajustamentos de dívidas a receber
106,532
5,963
(18,604)
(13,899)
79,992
Ajustamentos de existências
103,753
-
-
-
103,753
210,285
5,963
(18,604)
(13,899)
183,745
23. DOUBTFUL DEBTS
Em 31 de Dezembro de 2007, existiam dívidas classificadas como de cobrança
duvidosa no montante de € 79.992 totalmente provisionadas (Nota 21).
| 44
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
25. CREDIT AND LIABILITIES WITH EMPLOYEES
As at 31 December 2007, the Company had the following credit and liabilities with
personnel:
Debit balance
177,745
Credit balance
201,560
31. FINANCIAL COMMITMENTS ASSUMED AND NOT INCLUDED IN THE
BALANCE SHEET
The Company has liabilities with operating lease agreements not recognised
in the balance sheet (Note 3.b) amounting to approximately USD 19,435,000
(€ 13,211,913), due as follows:
Amount (USD)
Year
Airbus A310
Airbus A320
Total
Total
2,220,000
9,000,000
11,220,000
7,627,356
Short term:
2008
Medium and long term:
2009
1,850,000
5,325,000
7,175,000
4,877,565
2010
-
1,040,000
1,040,000
706,992
1,850,000
6,365,000
8,215,000
5,584,557
4,070,000
15,365,000
19,435,000
13,211,913
32. GUARANTEES PROVIDED
As at 31 December 2007, the Company had assumed liabilities for bank guarantees
provided to the following entities:
| 45
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
Amount
in currency
Beneficiary
Euros
Portuguese State
4,383,378
EUR
4,383,378
Gie Tutak
1,560,000
USD
1,060,488
Kinsale Limited
1,545,000
USD
1,050,291
Sata Express
1,415,000
CAD
982,576
ARC Airline Reporting Corporation
950,000
USD
645,810
AENA
120,202
EUR
120,202
Ibéria
120,202
EUR
120,202
87,000
SEK
92,394
101,750
CAD
70,655
Global Ground North America
90,000
CAD
62,496
Agência Aviação Civil Cabo Verde
36,500
EUR
36,500
Amsterdam Airport Schiphol
35,000
EUR
35,000
Sky Chefs
50,000
USD
33,990
Exeter and Devon Airport
25,000
GBP
33,945
Fraport AG Frankfurt Services wordline
30,000
EUR
30,000
Jet Aviation Handling AG
45,000
CHF
27,225
Government of Canada
30,000
CAD
20,832
20,3160
EUR
20,316
Luftfartseverket
The Greather Toronto Airport Auth,
ERA Rianta
Outras
45,549
8,871,849
The guarantee in favour of the Portuguese State of € 4,383,378 is related to the
concession of the operation of scheduled air transport services on the Ponta
Delgada-Funchal and Ponta Delgada-Lisbon-Oporto routes for the year 2007.
The guarantees provided in favour of the entities GIE Tutack and Kinsale Limit, for
USD 1,560,000 and USD 1,545,000 respectively, are related to the lease agreements
for the two Airbus A310-304 aircraft, through finance leasing (Note 54).
34. MOVEMENTS IN PROVISIONS
During the financial year ended 31 December 2007, the following movements
occurred in provisions:
| 46
ANNUAL REPORT
AND ACCOUNTS
2007
Headings
NOTES TO THE FINANCIAL STATEMENTS
Opening balance
Increases
(Note 6)
Deductions
(Note 46)
Utilised
Closing
Transfers
Balance
476,000
562,602
-
-
-
1,038,602
2,113,712
-
-
-
(1,204,006)
909,706
Provisions:
Frequent Flyer
Phase out and
maintenance of aircraft
Other provisions
3,594,450
9,068,000
(41,000)
(22,991)
1,204,006
13,802,465
6,184,162
9,630,602
(41,000)
(22,991)
-
15,750,773
‘Frequent flyer’ refers to estimated expenses with the accumulation of points on
‘Club SATA’ passenger cards, which allow holders to accumulate points for each
journey made.
‘Phase out and maintenance of aircraft’ refers to the estimated costs to be incurred
by the Company on the preparation of the aircraft for delivery to their lessor entities
and the cost of the next major aircraft overhauls. This amount was calculated
based on the flight hours of each aircraft and taking into account an estimated
average cost per flight hour.
Other provisions amounting to € 13,802,465 are intended to provide for contingencies
resulting from the Company's normal operations.
36. CAPITAL STRUCTURE
As at 31 December 2007 the Company’s fully subscribed and paid up share capital
consisted of 1,000,000 shares with a par value of five Euros each.
37. SHAREHOLDER
As at 31 December 2007, the entirety of the subscribed capital was held by SATA
Air Açores – Sociedade Açoriana de Transportes Aéreos, S.A.
40. CHANGES IN SHAREHOLDERS’ EQUITY
Changes in shareholders’ equity during the year ended 31 December 2007 were
as follows:
| 47
ANNUAL REPORT
AND ACCOUNTS
2007
Heading
Capital
Supplementary capital
NOTES TO THE FINANCIAL STATEMENTS
Opening balance
Net profit
2007
Appropriation of
profit from 2006
Closing
balance
5,000,000
-
-
5,000,000
17,446,294
-
-
17,446,294
Legal reserve
271,294
-
87,184
358,478
Free reserves
329,178
-
-
329,178
(13,182,133)
-
1,656,490
(11,525,643)
1,743,674
2,662,896
(1,743,674)
2,662,896
11,608,307
2,662,896
-
14,271,203
Retained earnings
Net profit for the year
Supplementary capital: By decision of the General Meeting of Shareholders of 27
December 2001, the sole shareholder of the Company provided supplementary
capital amounting to € 17,446,294. Supplementary capital, under current legislation,
can only be returned to shareholders provided the equity capital after its return
is no less than the sum of the capital and of the legal reserve.
Legal reserve: Commercial legislation establishes that at least 5% of the net annual
profit must be used to increase the legal reserve until it represents at least 20%
of the capital. This reserve may not be distributed except in the event of liquidation
of the company, but may be used to absorb losses after other reserves have been
exhausted, or may be incorporated into the capital.
As deliberated at the General Meeting held on 31 March 2007, the net profit for
the year 2006, amounting to € 1,743,674, was applied as follows:
Legal reserve
Retained earnings
87,184
1,656,490
1,743,674
41. COST OF GOODS SOLD AND MATERIALS CONSUMED
The cost of goods sold and raw material consumed in the year ended 31 December
2007 was determined as follows:
Opening inventory
494,708
Purchases
991,494
Closing inventory
(513,602)
972,600
43. REMUNERATION OF BOARD MEMBERS
The remuneration of board members in 2007 and 2006 was € 64,587 and € 74,183,
respectively.
| 48
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
44. SERVICES RENDERED BY ACTIVITY AND GEOGRAPHICAL MARKET
In the years ending 31 December 2007 and 2006, services rendered were as
follows:
Scheduled flights
2007
2006
75,760,553
72,296,447
77,245,934
62,283,442
7,304,502
3,009,842
160,310,989
137,589,731
Charter operations:
- External market
Other
The increase in ‘Services rendered’ for the external market continues, due essentially
to the increase in the number of flights to Canada and the United States of America.
As at 31 December 2007 and 2006, scheduled flights include the amounts
of € 4,998,084 and € 4,785,356 (Note 49), respectively, concerning financial
compensation for re-routing.
The increase in ‘Other’ essentially involves the charging of security and fuel charges.
45. STATEMENT OF FINANCIAL PERFORMANCE
The financial performance for the years ended 31 December 2007 and 2006 is
as follows:
2007
2006
394,691
398,968
3,904,872
1,936,663
696
1,384
Costs and losses:
Interest paid
Foreign exchange losses
Cash discounts granted
Other financial expenses
Financial profit/loss
603,929
279,467
4,904,188
2,616,482
(83,798)
(329,729)
4,820,390
2,286,753
215,255
14,141
3,888,936
2,115,372
716,199
157,240
4,820,390
2,286,753
Income and gains:
Interest earned
Foreign exchange gains
Other financial income (Note 16)
| 49
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
The amount of € 716,199 recorded in ‘Other financial income’ corresponds to
income obtained by the Company in joint financial operations for the acquisition
of currency (USD) with SATA Air Açores.
46. STATEMENT OF EXTRAORDINARY PROFIT OR LOSS
The extraordinary profit or loss for the years ended 31 December 2007 and 2006
are as follows:
2007
2006
Costs and losses:
Donations
Inventory losses
Losses on fixed assets
Fines and penalties
Adjustments in respect of previous years
Other extraordinary expenses
Extraordinary profit/loss
1,000
1,000
51,415
7,714
-
6,547
10,780
2,599
165,994
133,869
32,837
709
262,026
152,438
2,557,902
1,180,234
2,819,928
1,332,672
2007
2006
51,275
299
-
1,164
41,000
-
Income and gains:
Inventory gains
Gains on fixed assets
Reductions of depreciation and provisions (Note 34)
Adjustments relating to previous years
Other extraordinary income
2,138,662
797,507
588,991
533,702
2,819,928
1,332,672
‘Extraordinary income – Adjustments in respect of previous years’ includes: (i) the
amount of € 1,807,384 in respect of settlement of the credit balance of a supplier
for the years 2003 and 2004; and (ii) the amount of € 75,500 in respect of a
settlement of the re-routings for the year 2006.
As at 31 December 2007 and 2006, ‘Other extraordinary income’ includes essentially
€ 588,991 and € 510,989 related to recognition of the bonus received from Airbus
on signing of the finance lease agreements for two A310-304 aircraft (Note 50).
| 50
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
48. TAXES AND CONTRIBUTIONS PAYABLE / RECOVERABLE
As at 31 December 2007 and 2006, the balances of these headings were as
follows:
2007
2006
331,679
926,330
-
153,839
Debit balance:
Value Added Tax
Corporation Tax – IRC:
Minimum corporation tax
Tax deducted at source
-
40,859
Tax estimate
-
(71,986)
331,679
1,049,042
- tax deducted at source
213,019
160,815
Social Security Contributions
343,734
274,446
Minimum corporation tax
(195,000)
-
Tax deducted at source
(40,169)
-
1,332,352
-
Credit balance:
Personal Income Tax:
Corporation Tax – IRC:
Tax estimate (Note 6)
Other
6
-
1,653,942
435,261
49. OTHER DEBTORS
As at 31 December 2007 and 2006, the balances of these headings were as
follows:
2007
2006
Direcção-Geral do Tesouro
(Directorate General of the Treasury):
Scheduled flights and re-routings
Code Share - TAP
17,155,330 18,115,758
2,731,781
1,651,858
19,887,111 19,767,616
ILFC (Note 54)
Intracommunity VAT
Other
1,612,114
1,610,439
158,995
134,999
1,140,386
667,636
22,798,606 22,180,690
| 51
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
As at 31 December 2007, the amount to be received from the Direcção-Geral do
Tesouro was as follows:
Financial compensation for the public service provided in the year 2007:
Re-routings (Note 44)
Re-routing correction
Scheduled flights (Note 53)
Code Share – TAP
4,998,084
(75,500)
6,753,981
883,452
12,560,017
Financial compensation for the public service provided in the years 2005 and 2006:
Re-routings (Note 44)
Scheduled flights
Code Share – TAP
4,785,356
693,409
1,848,329
7,327,094
19,887,111
50. ACCRUALS AND DEFERRALS
As at 31 December 2007 and 2006, the balances of these headings were as
follows:
2007
2006
Services to be invoiced
734,665
115,520
Other
103,023
-
837,688
115,520
Insurance paid in advance
481,397
650,991
Leases paid in advance
266,260
339,976
Accrued income:
Deferred costs:
Other
65,497
44,168
813,154
1,035,135
1,958,870
1,907,309
Accrued costs:
Holiday pay and holiday bonuses
Commissions paid to travel agents
654,498
533,596
Other
642,574
708,690
3,255,942
3,149,595
manufacturers
170,330
775,799
Invoicing of Charters
615,580
-
785,910
775,799
Deferred income:
Bonuses received from equipment
| 52
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
‘Accrued costs – Other’, of € 642,574, corresponds to unbilled third-party services.
‘Bonuses received from equipment manufacturers’ of € 170,330 corresponds to
a bonus received from Airbus under the signing of the finance lease agreements
for two A310-304 aircraft which is recognised as income in accordance with the
estimated remaining useful life of those aircraft (Note 10).
51. OTHER CREDITORS
As at 31 December 2007 and 2006, the balances of this heading were as follows:
2007
2006
Airport Taxes
793,558
581,073
IATA Clearing House
205,885
-
-
1,807,384
GECAS
Other
568,029
354,840
1,567,472
2,743,297
52. EXTERNAL SUPPLIES AND SERVICES
External supplies and services for the years ended 31 December 2007 and 2006
are as follows:
2007
2006
Fuel and lubricants
44,301,109
37,510,644
Maintenance reserve per flight hours
13,972,289
11,792,444
Handling
13,218,159
12,200,798
Airport Taxes
12,374,632
12,168,195
Rents and leases
7,980,242
8,132,326
Maintenance
5,976,346
7,049,337
Catering
5,464,503
4,514,358
Other charges
5,170,079
5,841,184
Commissions
4,853,926
4,402,853
742,077
934,894
16,604,428
11,137,072
130,657,790
15,684,105
Insurance
Other
The heading ‘Rents and leases’ includes values concerning the operating lease
agreements for the three Airbus A320 and one A310-304.
| 53
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
53. OPERATING SUBSIDIES
As at 31 December 2007 this heading was € 6,753,981 (Note 49) and related to
compensation attributed by the Government of the Portuguese Republic in respect
of scheduled flights for the year 2007.
54. FLEET – OPERATING AND FINANCE LEASES
As at 31 December 2007, the Company operated with aircraft through operating
and finance leases under the terms of the agreements described below:
In 2005, the Company introduced an addendum to the initial operational lease
agreement for an Air Airbus A310-304 (‘CS-TGU’), being granted under that
amendment the right to a purchase option over that aircraft, which at the present
configures this new lease as finance and will terminate in August 2008 (Note 15).
To guarantee this agreement SATA Internacional presented an irrevocable letter
of credit for USD 1,560,000 (Note 32).
In 2005, the Company introduced an addendum to the initial operational lease
agreement for an Air Airbus A310-304 (‘CS-TGV’), being granted under that
amendment the right to a purchase option over that aircraft, which at the present
configures this new lease as a finance lease and will terminate in July 2008 (Note
15). To guarantee this agreement SATA Internacional presented an irrevocable
letter of credit for USD 1,545,000 (Note 32).
The operating lease agreement for the aircraft A320 (‘CS-TKJ’) commenced on
15 May 2004 and due to terminate in May 2008. In 2007, the extension of the
agreement to May 2010 was negotiated. The agreement sets out the payment of
monthly lease payments plus a maintenance reserve per flight hour, with no
purchase option at the end of the agreement. To guarantee this agreement SATA
Internacional lodged a security deposit in favour of ILFC for USD 540,000 (Note
49).
In March 2004, the Company signed an operating lease agreement for two new
A320 aircraft (‘CS-TKK and CS-TKL’), to replace the two Boeings in the fleet at
that time, which went into operation in April 2005. To guarantee these agreements,
SATA Internacional lodged a security deposit in favour of ILFC for USD 1,200,000
(Note 49).
| 54
ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
In May 2005 the Company signed an operating lease agreement for an A310-304
aircraft (‘CS-TKM’) which was due to terminate in May 2008. In 2007, the extension
of the agreement to November 2009 was negotiated. The agreement sets out the
payment of monthly lease payments plus a maintenance reserve per flight hour,
with no purchase option at the end of the agreement. To guarantee this agreement
SATA Internacional lodged a security deposit in favour of ILFC for USD 360,000
(Note 49).
In May 2007 the Company acquired from Austrian Airlines an Airbus A310-325
(‘CS-TKN’) (Note 10), which it immediately sold and released with the institution
Totta Leasing, an operation that did not generate any gain for the Company. The
leasing agreement signed with Totta Leasing terminates in May 2015, and the
Company recorded it as a finance lease. The Company has not provided any
guarantee or security deposit on signing this agreement.
55. CASH FLOW STATEMENTS
The breakdown of cash and cash equivalents, reconciling the amounts shown in
the cash flow statement with the balance sheet headings, is as follows:
2007
2006
98
9,143
Bank deposits repayable on demand
14,611,142
4,852,291
Banks and cash as per balance sheet
14,611,240
4,861,434
Cash
56. PROFIT & LOSS ACCOUNT BY FUNCTION
The profit and loss account by function was drawn up taking into consideration
the provisions of Accounting Directive No. 20 and the following aspects should
be noted:
(a) ‘Cost of goods sold and services rendered’ includes essentially the values of
the profit and loss account by nature recorded in: ‘Cost of materials consumed’;
‘External supplies and services’ - Fuel and lubricants, Rents and leases, Maintenance
reserves per flight hours, Handling, Flight and other charges, Charters, Catering
and Other; ‘Personnel costs’ – in respect of on-board staff.
(b) ‘Other operating income’ includes essentially the values of the profit and loss
account by nature recorded in: ‘Operating subsidies’; ‘Supplementary income’
and ‘Extraordinary income’.
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ANNUAL REPORT
AND ACCOUNTS
2007
NOTES TO THE FINANCIAL STATEMENTS
(c) ‘Distribution charges’ includes essentially the values of the profit and loss
account by nature recorded in: ‘External supplies and services’ and ‘Personnel
costs’ related to the Company's sales department.
(d) ‘Administrative costs’ includes essentially the values of the profit and loss
account by nature recorded in: ‘External supplies and services’ and ‘Personnel
costs’ related to the Company's administrative department.
(b) ‘Other operating expenses’ includes essentially the values of the profit and loss
account by nature recorded in: ‘Depreciations of tangible fixed assets’, ‘Provisions’
and ‘Extraordinary expenses’.
THE CHARTERED ACCOUNTANT
António Jorge Ferreira da Silva
THE BOARD OF DIRECTORS
António José Vasconcelos
Franco Gomes
de Menezes
(Presidente)
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Luísa Maria Estrela Rego
Miranda Schanderl
(Administradora)
António Maurício do Couto
Tavares de Sousa
(Administrador)
Luís Filipe Soares Borges
da Silveira
(Administrador)
ANNUAL REPORT
AND ACCOUNTS
2007
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LEGAL CERTIFICATION OF THE ACCOUNTS
ANNUAL REPORT
AND ACCOUNTS
2007
LEGAL CERTIFICATION OF THE ACCOUNTS
Report and Opinion of the Statutory Auditor
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ANNUAL REPORT
AND ACCOUNTS
2007
LEGAL CERTIFICATION OF THE ACCOUNTS
Report and Opinion of the Statutory Auditor
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ANNUAL REPORT
AND ACCOUNTS
2007
LEGAL CERTIFICATION OF THE ACCOUNTS
Legal Certification of the Accounts
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ANNUAL REPORT
AND ACCOUNTS
2007
LEGAL CERTIFICATION OF THE ACCOUNTS
Legal Certification of the Accounts
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ANNUAL REPORT
AND ACCOUNTS
2007
LEGAL CERTIFICATION OF THE ACCOUNTS
Annual Report on the Audit Work Performed
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ANNUAL REPORT
AND ACCOUNTS
2007
LEGAL CERTIFICATION OF THE ACCOUNTS
Annual Report on the Audit Work Performed
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ANNUAL REPORT
AND ACCOUNTS
2007
LEGAL CERTIFICATION OF THE ACCOUNTS
Audit Report
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ANNUAL REPORT
AND ACCOUNTS
2007
LEGAL CERTIFICATION OF THE ACCOUNTS
Audit Report
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