Our eyes on your safetyANNUAL REPORT 2018

www.skeyes.be

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NICE TO GUIDE YOU 1

INTRODUCTION 1

SKEYES SITES 1

KEY FIGURES 2018 1

OUR VISION 2

SKEYES IS READY FOR THE FUTURE 2

A NEW NAME 6

20 YEARS  OF EXPERTISE 8

OUR ACHIEVEMENTS 10

2018 IN FIGURES 10

HIGHLIGHTS 14

FLYING SAFELY 18

 AN INNOVATOR 22

A MORE SUSTAINABLE WORLD 24

STRONG PARTNERSHIPS 28

ANNUAL REPORT 2018 32

TA B L E O F CO N T E N T S

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skeyes ensures the safety and efficiency of air traffic in Belgium 24/7. The skeyes air traffic controllers manage over 3,000 aircraft every day, which makes up over one million flight movements per year. The autonomous public company is active at the heart of Europe, in one of the busiest and most complex sections of airspace of the continent.

skeyes is active at Brussels Airport and at the airports of Antwerp, Charleroi, Kortrijk, Liège and Ostend. Thanks to its CANAC 2 control centre skeyes manages the flight movements above Belgium and a part of Luxembourg up to an altitude of 7,500 metres.

The company relies on its nearly 900 experienced staff members who are at the service of their customers: airline companies, airports, the aviation sector and the authorities. skeyes also develops innovative services regarding drones and contributes to a sustainable future of the aviation sector, among other things with respect to the environment.

skeyes is a member of FABEC, a joint airspace block (Belgium, Luxembourg, the Netherlands, Germany, France and Switzerland) with the aim of improving air navigation efficiency in the heart of Europe in the framework of the Single European Sky.

nice toguide you

Antwerp Airport

Charleroi Airport

Ostend Airport Headquarters skeyes

CANAC 2Brussels Airport

Main radar site Bertem

Kortrijk Airport Liège

Airport

Main radar site Saint-Hubert

98.3%

flights handled punctually by skeyes

1,101,145

flight movements managed by skeyes

+2.4%

growth of air traffic compared to 2017

€ 20.6

million of investments by skeyes

872

number of employees

SKEYES SITES KEY FIGURES 2018

€ 240.4

million turnover

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O U R V I S I O N

"SKEYES iS REAdy FOR THE FUTURE"Johan Decuyper, CEO Renaud Lorand, Chairman of the Board of Directors

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2018 WAS A VERY SPECIAL YEAR FOR SKEYES: THE COMPANY CELEBRATED ITS 20th ANNIVERSARY AND CHANGED ITS NAME. WHY?

Johan Decuyper : The aviation sector is changing and so are the needs of our customers. This is why we launched an extensive transformation programme within the company several years ago. We have put our finances in order, have invested in our technical infrastructure and have recruited many new employees. Our new corporate culture - which we have developed in close cooperation with all our employees - has safety, customer focus, service continuity and new technologies as its core priorities. Our new name, skeyes, is a reflection of this new identity.

Renaud Lorand : indeed, the name “skeyes” says it all: we are “the eyes in the sky”. We are the partner that you can rely on, that ensures the safety of air traffic and keeps a watchful eye on the needs of its customers. We are a partner that provides the efficient and high-quality services that the airlines and airports expect. And we are a partner whose eyes are focused on the future, particularly in the area of drones and sustainable development. Of course, none of this would be possible without the professionalism and extensive expertise of our employees.

IN EUROPE, 2018 WAS ALSO MARKED BY A SIGNIFICANT INCREASE IN AIR TRANSPORT AND NUMEROUS DELAYS. HOW DID THIS GLOBAL CHANGE MANIFEST ITSELF WITHIN SKEYES?

Johan Decuyper : Across Europe, 2018 was a very difficult year: the airlines, airports and air traffic control providers clocked up a dizzying volume of delays – more than 19 million minutes. However, despite the increase in air traffic, skeyes succeeded in maintaining its excellent score for punctuality. With 98.3% of flights handled without any delay, it is one of the best results of its kind in Europe. The average delay is very low, at only 0.11 minutes per en-route flight for skeyes, against a delay of 1.40 minutes per flight at FABEc level.

Renaud Lorand : skeyes’ 2018 performance was excellent. Not only in terms of punctuality, but also, and above all, in terms of safety - our primary mission and absolute priority. The same goes for our financial results: 2018 was the fifth consecutive year of profit. skeyes is investing wholeheartedly in its systems, in new technologies and in its human capital. in 2019, we will surpass the mark of 900 employees. The company is once again a respected European player and is prepared for the future.

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COMPETITION IN THE AIR TRAFFIC CONTROL SECTOR HAS INCREASED SIGNIFICANTLY. HOW IS SKEYES PREPARING FOR THESE CHANGES?

Johan Decuyper : Air traffic control is, by definition, an international sector. in more and more European countries, we are seeing that air traffic control is subject to competition, particularly in the area of control towers. Our reasoning is therefore very simple: we have to be a reliable and efficient partner, the preferred supplier for our customers. Ever more rapid technological developments are also likely to disrupt our sector significantly. Here too, our roadmap is clear: adapt and evolve to remain a reliable efficient partner. This is why we created a joint venture to provide training and why we are investing in new systems and in drones - among other things through our digital platform droneguide.be – and in pioneering "U-space" demonstration projects on a European scale, in collaboration with other leading companies such as Amazon and Proximus.

Renaud Lorand : A company that fails to evolve will decline. To confront the changes in the sector and comply with the strict performance targets set by Europe, we launched, at the end of 2017, a major transformation program in collaboration with our employees. The strategic guidelines could be summarised as follows: customers, employees and the future. We are aiming for 10-year contracts with the airports, with clear measurable objectives. in addition we are investing in a better work-life balance as well as innovative investments to meet the challenges of the future. All the efforts with as only aim to constantly offer our quality services and professionalize our company.

Johan Decuyper, CEO

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WHAT ARE THE MAJOR CHALLENGES FOR SKEYES IN 2019?

Johan Decuyper : To meet the growth in air traffic, recruitment remains one of our top priorities. This will also allow us to work on a better work-life balance for our employees – an issue that is particularly high on our agenda. in addition, we will be focusing on a number of major projects in 2019: firstly, our droneguide.be app is going to be expanded. A version reserved for professional drone pilots will be introduced. We are also working on integrating drones into air traffic. Next, civil and military air traffic control is going to be co-located on the main skeyes site at the end of 2019. For the first time in Belgium, civil and military air traffic controllers will work in the same operations room, making our airspace more flexible. With EUROcONTROL and the Belgian Armed Forces, we are also working on a single air traffic management system in Belgian airspace.

digital control towers are another major area that we will be focusing on. Not forgetting the huge investments in our

technical infrastructure - in five years, we will have invested almost EUR 100 million.

Renaud Lorand : As well as these operational challenges, we will also be turning our attention to strategic and social challenges: changes in the aviation sector, our social role and sustainability. We are developing a corporate Social Responsibility program with many concrete actions throughout our company. We are also implementing new working methods and a building will be dedicated to the "New Way of Working". in addition, we work closely with a wide range of partners, including the airlines and airports, to reduce the environmental footprint of our company and our sector, whether by collaborative forums or through continuous improvement of procedures such as green landings.

Renaud Lorand, Chairman of the Board of Directors

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A NEW NAMETo celebrate its 20th anniversary, the company has gifted itself a new name. skeyes reflects its new identity, embodying the core elements of safety, humanity and technological evolution. skeyes’ eyes are firmly focused on the safety of air traffic and airspace users, on its employees and on the future.

O U R V I S I O N

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20.11.1946

creation of the Belgian Airways Authority (Regie der Luchtwegen/Régie des Voies Aériennes)

02.10.1998

creation of Belgocontrol

07.11.2018

creation of skeyes

For several years, the autonomous public company has been pursuing an extensive process of transformation and implementing its new strategic focus. The priorities - then and now - are not only safety, but also a healthy financial position, a focus on customers, service continuity, technological change, well-being at work, social responsibility and sustainable development.

skeyes - nice to guide you reflects this new corporate culture and identity: the new name combines a feeling of safety - a partner that sees (and anticipates) everything - with a human touch. skeyes’ all-seeing eyes inspire confidence: they are focused on our company’s most important activity, namely the safety of the airspace and its users. Our eyes are also focused on the needs of our customers and partners as well as on future developments in the aviation sector.

2018 was a very special year for skeyes: on 7 and 8 November, the company celebrated its 20th anniversary. it took advantage of this unique opportunity to mark the occasion by revealing its new name and identity to employees as well as its main customers and partners.

view all of our #storyofskeyes videos in the digital annual report:

https://annualreport.skeyes.be

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2014Launch of an investment programme of close to EUR 100 million to modernise technical infrastructure.

2000A minor revolution in the management of air traffic control and the first to adopt such an innovation, Belgocontrol abandons the use of paper flight strips and introduces electronic flight progress strips.

2004iSO 9001 certification, a quality label aimed at companies wishing to improve customer satisfaction.

2005Move to the new main Belgocontrol site at Steenokkerzeel.

2008The Belgocontrol

Airport Movement System is

equipped with ground radar and

safety nets.

2003Launch of the AiM-Meteo-Briefing platform: customised weather forecasts and flight information are easily accessible by customers.

2004Official opening of the new Belgocontrol control tower at Brussels Airport.

2005Belgocontrol equips its radars with Mode S (new surveillance standard) from 2005, making the data even more accurate.

20 YEARS  OF EXPERTiSEFor more than 20 years, skeyes has been ensuring the safety of air traffic in Belgium. The company’s almost 900 employees are known for being experts in this sector. They are constantly innovating and enable the economy as well as millions of passengers to take flight. A look back at the milestones in the history of the autonomous public company.

1998creation of Belgocontrol

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2018For the first time in its history, Belgocontrol creates a joint venture. Entry Point North Belgium takes over responsibility for providing high quality training.

2016Birth of AiM Belgium, joint agency for the publication of civil and military aeronautical information in Belgium.

2009Official opening of the cANAc 2 control centre that manages en-route movements above Belgium and part of Luxembourg.

2011Belgocontrol extends its services to Liège Airport, operating 24 hours a day 7 days a week.

2018Belgocontrol launches droneguide.be, a website and mobile app for drone users in Belgium.

2017Belgocontrol develops a new policy regarding wind turbines and publishes a map to highlight construction possibilities in Belgium.

2009Belgocontrol implements the first green landings. These are procedures that enable aircraft to land while reducing cO2 emissions and noise pollution.

2010in 2010, Belgium created FABEc, the common airspace of the Benelux countries, germany, France and Switzerland. Belgocontrol plays an important role in this European airspace to optimise air navigation services.

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2015Publication of the first satellite navigation procedure not requiring ground infrastructure at Antwerp Airport.

2017Belgocontrol develops a new policy regarding wind turbines and publishes a map to highlight construction possibilities in Belgium.

2018creation of skeyes

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2018 IN FIGURESskeyes is responsible for the safety and efficiency of air traffic in Belgium – 24 hours a day, 7 days a week. We have almost 900 employees serving our customers, which include airlines, airports, the aviation sector and public authorities, providing them with the safest, most sustainable and unique experience possible. Managing over a million flight movements per year with one of the best punctuality rates in Europe, skeyes truly helps to drive the Belgian economy.

O U R AC H I E V E M E N T S

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NUMBER OF FLIGHT MOVEMENTS

612,138

235,459

55,925

96,754

58,17142,698

Air traffic control

PUNCTUALITY: EFFICIENT MANAGEMENT OF AIR TRAFFIC FLOWS

cRSTMP causesThese are causes that can be influenced by air traffic control: c-capacity, R-Routing, S-Staffing, T-Equipment, M-Airspace Management, P-Special Events

skeyes has one of the best en-route punctuality rates of FABEC (Belgium, Netherlands, Luxembourg, germany, France and Switzerland).

Comparison of average delay per flight in FABEC (CRSTMP causes)

Number of movements managed per unit

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0,25

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0,75

1,00

1,25

1,50

skeyes skyguide MUAc dSNA dFS FABEcLvNL

0.04 0.11 0.20

0.50 1.08 1.24 1.40

min/flight

1,101,145

air movements controlled by skeyes in 2018

+2.4%

growth compared to 2017

■ cANAc 2■ Brussels Airport

(EBBR)■ Antwerp Airport

(EBAW)■ charleroi Airport

(EBci)■ Liège Airport (EBLg)■ Ostend Airport

(EBOS)

Flight informationKortrijk Airport : 34,889

98.3%

of flights were handled punctually by skeyes in 2018

EN-ROUTE TRAFFIC

0.11 min/flight

= 6.6 seconds delay per flight

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For en-route traffic, the fees are in proportion to the distance travelled and the square root of an aircraft’s mass. A service unit corresponds to the control of an aircraft of 50 tonnes over 100 kilometres.

0.10 min/flight

= 6 seconds delay per flight

Weather conditions are the main cause of arrival delays at Liège (90%).

Liège Airport

0.01 min/flight

= 0.6 second delay per flight

Ostend Airport

THE BEST SERVICE AT THE BEST PRICE

€ 67.6

unit rate charged by skeyes for an en-route service unit in the airspace for which it is responsible

-10.8%

Underlying the Unit rate charged, there is the DUC (Determined Unit Cost set by the European Commission) which is € 58.74 (in 2009 real terms), or a reduction of 2.2% compared to 2018 and a reduction of 10.8% compared to the starting base of € 65.90 in 2014. skeyes has recorded the best performance in FABEC in terms of application of the agreed reduction in costs.

0.85 min/flight

= 51 seconds delay per flight

PUNCTUALITY AT THE AIRPORTS

Brussels Airport

Weather conditions are the main cause of arrival delays at Brussels Airport (81%).

min

/flig

ht

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0.5

1.0

1.5

2.0

2.5

2.39

0.85 0.91

Paris Charlesde Gaulle

BrusselsAirport

Frankfurtam Main

LondonHeathrow

AmsterdamSchiphol

0.28 1.84

Comparison of arrival delays at Brussels Airport and at the large neighbouring airports (all causes combined)

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-2.2% p.y.

2014 2015 2016 2017 2018 2019

Reduction in Determined Unit Cost (DUC) 2014-2019 of en-route service

0.08 min/flight

= 4.8 seconds delay per flight

Weather conditions are the main cause of arrival delays at charleroi (75%).

Charleroi Airport

0.02 min/flight

= 1.2 second delay per flight

Antwerp Airport

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SKEYES: A COMPANY THAT IS HIRING

WEATHER AND AERONAUTICAL INFORMATION

872

number of employees as at 31 December 201876

new employees were hired in 2018

28

candidate air traffic controllers started their training in 2018

700

750

800

850

900

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2014 2015 2016 2017 2018

Notam (Notice to Airmen) are messages published for the purpose of notifying pilots of changes in airspace and on the ground.

10,615 

Notams produced by the skeyes Brussels Notam Office

The special activities coordinated by the SPAcc unit include flights to calibrate ground-based air navigation infrastructure, photo and video flights (e.g. during major sports events), drone flights in controlled airspace, thermal-imaging flights as well as fireworks.

1,233

number of special activity requests handled by the skeyes SPACC unit

27

new air traffic controllers completed their training and commenced employment in 2018

via the skeyes Handler Briefing application, stakeholders in the commercial aviation sector (handlers and airlines) receive personalised weather and aeronautical information.

13,800 

average monthly number of “Pre-flight Information Bulletins” produced by skeyes

This platform is aimed at general and sports aviation pilots. They can use it to obtain weather observations and forecasts and any aeronautical information that they need for their flights.

27,700 

average monthly logins to the skeyes "Meteo-AIM Briefing" site

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HIGHLIGHTSBy leveraging new technologies and investing in continuous modernisation of its systems and infrastructure, skeyes hopes to ensure its operational continuity and provide its customers with a quality service at all times. skeyes therefore invested more than EUR 20 million in 2018. A significant portion of this was devoted to the CANAC 2 control centre (Computer Assisted National Air Traffic Control Centre) which has established an all-time record.

O U R AC H I E V E M E N T S

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ALL-TIME RECORD AT THE CANAC 2 CONTROL CENTRE

growth in European air traffic has been particularly noticeable at the skeyes cANAc 2 control centre. The centre is located at the crossroads of major European routes and airports. For the first time in its history, the control centre managed more than 600,000 movements. The air traffic controllers from cANAc 2 controlled a total of 612,138 flight movements safely and efficiently in 2018. This is an average of almost 1,700 aircraft per day (+3.2% compared to 2017).

cANAc 2 is the heart of air safety operations at skeyes. Unlike a control tower that manages air traffic in the immediate environs of an airport and on the runways and taxiways, the controllers in the cANAc 2 control centre manage overflying air traffic and on approach up to an altitude of 7,500 metres. The operations room can be distinguished by the four “petals” that form the work stations of the controllers.

COMPLETE UPGRADE FOR CANAC 2

skeyes has carried out a complete upgrade of its air traffic management system to ensure its continued efficiency and stability in the coming years. in just one night, all of the CANAC 2 workstations were replaced and migrated to the new system without any impact on air traffic or any interruption to smooth operations. This feat, comparable to open heart surgery, was made possible thanks to the teamwork of technical and operational experts from skeyes.

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NEW TESTING AND TRAINING PLATFORM

in order to prepare for co-location of civil and military air traffic control, several major works were carried out during 2018 at skeyes. The military personnel will move into the section of the cANAc 2 centre previously jointly dedicated to testing as well as training of air traffic controllers and technical teams. These positions have therefore been transferred to a completely renovated room where a portion of the positions are now solely dedicated to testing while a larger number of training positions have been created, considerably increasing the training capacity.

CUTTING-EDGE SATELLITE NAVIGATION

Almost 70% of runways in Belgium are equipped with satellite navigation thanks to skeyes. contrary to standard navigation, which relies on ground-based beacons and instrument landing systems to guide aircraft, air navigation of the future will use satellite signals, among other things. PBN (Performance Based Navigation) guidance occurs in three dimensions. it is accurate and improves accessibility to airports in the event of the unavailability of standard equipment.

Approach procedures have been developed for all Belgian airports. skeyes is one of the best students in the European class: according to the latest figures from EUROcONTROL, these types of PBN procedures have been developed for only 36% of runways in Europe.

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MODERNISATION OF THE AIR NAVIGATION BEACON NETWORK

skeyes has launched an extensive modernisation programme for its network of air navigation beacons in Belgium. The company has a total of 14 dvOR and dME beacons distributed throughout the territory. Standard navigation beacons provide pilots with the option of flying by following published procedures and moving about safely in the airspace.

in 2018, the BUB beacon located close to Brussels Airport was one of several that was replaced. during the period of renovation, satellite navigation tools (PBN) were deployed to ensure continuity of operations without impacting air traffic capacity.

LEADER IN THE AREA OF NEW RADIO FREQUENCIES

Radio frequencies are a scarce resource - this is true both for the frequencies used by your car radio and for communication in the sky between pilots and air traffic controllers. To satisfy increasing demand, the European commission decided to reduce the channel spacing between frequencies reserved for aviation from 25 kHz to 8.33 kHz. Two additional frequencies have therefore been created per 25 kHz.

skeyes pulled out all the stops to replace its entire fleet of radios in 2018 (almost 400 sets on 18 sites). skeyes is fully compliant with the new European Regulation and is one of the leaders in this area in Europe.

MORE FLEXIBILITY TO MANAGE AIR TRAFFIC FLOWS AT LIÈGE AIRPORT

As a result of optimising the horizontal separation between aircraft, skeyes offers more flexibility for managing air traffic around Liège Airport, while still guaranteeing safety. The minimum separation distance has been reduced from 5 nautical miles (9.3 km) on the horizontal plane to 3 nautical miles (5.6 km). Air traffic flows from and to the airport can therefore be organised more fluidly and efficiently. All air traffic controllers have been trained in this new separation standard.

This measure has been operational for several years already at Brussels Airport. Similar projects are underway for Ostend and charleroi airports and will be implemented during 2019.

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FLyiNg SAFELYSafety is the main preoccupation and an absolute priority for skeyes. It is the key element of the company’s culture. skeyes gives great importance to “Just Culture”. Safety is promoted on a daily basis and is embedded in the DNA of the company and its employees. At skeyes, safety is analysed and managed in a systematic and continuous way.

O U R AC H I E V E M E N T S

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category A and B incidents (1 and 3)

The severity of incidents is evaluated by independent experts on a scale from A (severe) to E (no impact on safety). The severity of an incident is determined by the horizontal and vertical separations between the aircraft and by the level of control over the situation.

3.63

category A and B incidents per million movements

0.91

category A incidents per million movements

NUMBER OF INCIDENTS ALWAYS AT A MINIMUM

A PERVASIVE SAFETY CULTURE

skeyes recorded the second-best score in its history in the area of safety in 2018. considering the growth and complexity of air traffic, the proportion of A and B incidents decreased compared to the previous year. it is one of the lowest scores in Europe.

Evolution of the number of category A (severe) and B (major) incidents

0

5

10

15

20

25115

45

72

43

32

31

42

00

31

31

09 10 11 12 13 14 15 16 17 18

■ A ■ B

All incidents, no matter how minor or insignificant, are reported. The skeyes air traffic controllers reported a total of 1,489 incidents in 2018. All the reports are extensively analysed by skeyes safety experts to maintain the high level of safety and ensure continuous improvement. in addition, systematic reporting of incidents provides a more accurate overview of the proactive and reactive actions that need to be taken.

JUST CULTURE“Just culture” is a key element for skeyes. it offers a trusting environment in which operating personnel can work honestly and transparently. Using reports and investigations into safety-related events, Just culture places the emphasis on the exchange of crucial information to ensure continuous improvement of air navigation safety, as well as the non-punitive handling of unintentional human errors.

in december 2018, skeyes hosted a major FABEc conference on Just culture with experts from a variety of companies and authorities from several European countries. conference theme: how to bridge the gap between aviation safety and the judicial systems?

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3

A B

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These are changes involving safety that have been reported to the Belgian Supervisory Authority for Air Navigation Services (BSA-ANS).

Whenever a technical or operational (new system, new procedure, etc.) change is planned, the modification is

PROACTIVE SAFETY ACTIONS

30

safety assessments were carried out in 2018 by skeyes

THE MOST FREQUENTLY REPORTED INCIDENTS

Some of the most reported incidents include intrusion by pilots into controlled airspace without prior authorisation (93 reports). This type of incident mainly involved regional airports where there is a higher volume of general aviation traffic.

Another type of incident frequently reported is attempts to blind pilots using laser pointers, even though, once again, such reports are down compared to previous years (83 reports in 2018 compared to 101 the previous year).

However, reports of drones in controlled airspace and in the no-fly zones around airports have increased significantly: they have doubled compared to 2017 (31 reports in 2018 against 15 the previous year).

From the 1,489 incidents reported, investigations established that skeyes bore responsibility in 83 of them, of which almost 75% (61) were category E, that is to say without any impact on the level of safety.

1,489

incident reports in 2018

Number of incidents reported by skeyes air traffic controllers

0200

400600800

100012001400

160018002000

09 10 11 12 13 14 15 16 17 18

in ten years, the number of incident reports has increased by more than 900%. For the first time, this number has decreased, indicating a likely stabilization of the effects of measures taken to encourage incident reporting. This observation is closely followed by skeyes.

The significant increase in the number of incident reports in recent years is related to three factors:

The firm establishment of a culture of safety as well as the continuous application and promotion of Just culture; Optimisation of incident reporting tools; European legislation from the end of 2015 which expanded the types of incidents to be reported.

analysed from a safety perspective before its implementation and is thoroughly examined.

in 2018, this concerned, among other things, the dvOR/dME navigation beacon modernisation programme; the introduction of the Airbus A340-300 to charleroi Airport; the modernisation of the air traffic management system at the cANAc 2 centre; projects to optimise the horizontal separation between aircraft (reduction from 5 to 3 nautical miles) in the approach zone to Ostend and charleroi airports.

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60

80

100

120

140

160

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3145 47

8393

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Safety surveys are internal and external audits carried out to identify the most high-risk processes and take the appropriate corrective actions.

The safety surveys conducted in 2018 included: operations at Kortrijk Airport; the transfer of dHL cargo operations to a new site at Brussels Airport.

4

safety surveys were conducted in 2018 by skeyes

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O U R AC H I E V E M E N T S

 AN iNNOvATORWhether in the area of drones or digital control towers, skeyes has its eyes fixed on the future. The company is a leader in the air traffic management of drones. As a member of the European U-space Demonstrators Network, skeyes is playing an active role in numerous major projects. skeyes has also developed a digital platform for users of drones in Belgium.

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Thanks to skeyes, drone pilots in Belgium have access to a practical tool for safe and effective flying. The droneguide.be app, launched in 2018 by skeyes, enables users to quickly and easily see where and under which conditions they can fly drones in Belgium. droneguide.be also provides an additional layer of safety by indicating to the pilot whether there are other drones active nearby that require attention.

in the course of 2019, professional drone pilots will be able to use droneguide.be to submit and manage their permit applications to the Belgian civil Aviation Authority (BcAA). development of the “professional” version of droneguide.be started in 2018.

The droneguide.be app is free and available for smartphones (Android and iOS).

SAFIRThe challenge of the SAFiR project is to safely integrate a wide range of drone operations with air traffic, within a complex urban and industrial environment. 13 partners, including skeyes, Amazon Prime Air, Unifly and the Port of Antwerp, launched the ambitious project in 2018. In the course of 2019, the SAFIR consortium will conduct full-scale integration and traffic management testing for drones in Antwerp.

SAFiR was selected by SESAR within the framework of the European commission’s U-space policy which is aimed at ensuring safe access by drones to airspace.

MEDRONAskeyes is an active partner in the “Helicus Aero initiative”, launched in 2018. This project is aimed at establishing a reliable, effective, environmentally friendly drone-based system for transporting medical packages between hospitals and their laboratories and pharmacies.

MEdRONA was selected within the context of Smart Mobility Belgium. The project’s partners are Helicus, skeyes, SABcA, Unifly, La Baloise, NSX as well as several hospitals in Antwerp and Hasselt.

DRONEPORTdronePort is a campus earmarked for technology companies active in both manned and unmanned aviation. Officially opened in late 2018 in Saint-Trond, the campus is home to start-ups, schools of higher education, universities and centres of expertise that conduct joint research projects, exchange ideas and adopt initiatives to stimulate the drone sector in Belgium. As a leading player in the area, skeyes is present on the dronePort campus, supports the initiative and participates in different activities on the site.

DIGITAL CONTROL TOWERS

A true technological marvel, digital control towers are revolutionising the world of air traffic control. Thanks to new technologies and ultra-modern cameras, air traffic controllers will be able to manage flight movements in a more optimal manner in these digital centres. The first fully digital towers appeared in Scandinavia a few years ago and an increasing number of projects are being developed in Europe. skeyes sincerely believes in this future technology and launched, following a number of conclusive studies, a wide-ranging project in 2018.

skeyes and the Walloon Airports company (SOWAER) plan to develop the future digital air traffic control centre for Liège and charleroi airports. in this way, the two organisations are responding to the growing needs of Wallonia’s airports and are fully supporting them in their development. it will be the first digital control tower in Belgium and a major European-scale project, and will take a few years to complete.

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A MORE SUSTAiNABLE WORLDKeen to reduce the environmental footprint of aviation, skeyes collaborates closely with airlines and airports to reduce the impact of operations on the environment. A pioneer in the area of green landings, the company is also at the forefront of renewable energy. skeyes assists with the siting of new wind turbines by ensuring that they are developed harmoniously with air traffic.

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A cdO (continuous descent Operation) is an operation in which the aircraft descends continuously, employing minimum engine thrust to the greatest possible extent, depending on the characteristics of the flight and the air traffic situation. This enables a reduction in noise pollution, fuel consumption and greenhouse gas emissions.

GREEN LANDINGS

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CONTINUOUS DESCENT OPERATION (CDO)

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Breakdown of arrivals by airport where the CDO procedure is applied

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ENVIRONMENTAL COURSE FOR SKEYES AIR TRAFFIC CONTROLLERS

To raise awareness of climate change among air traffic controllers, skeyes launched a “climate and environment” course for its operations personnel in 2018. developed by an air traffic controller, the module covers climate issues

and the impact of aviation over a period of a few hours. The course also provides an opportunity for an exchange of best practices in the area.

COLLABORATIVE ENVIRONMENTAL MANAGEMENT AT BRUSSELS AIRPORT

in 2018, skeyes and Brussels Airport company signed a collaboration agreement with Brussels Airlines, TUi fly and dHL Express for the carrying out of joint initiatives aimed at further reducing the environmental impact of aviation activities. EUROcONTROL and Aci Europe, a professional association of airport operators, support this collaborative Environmental Management (cEM) initiative at Brussels Airport.

The cEM concept aims to devise joint concrete solutions to environmental issues on the sites and environs of airports, by gathering the main operational stakeholders around the table: airport operators, airline companies and air traffic control. cEM at Brussels Airport covers, among other things, the sharing of experiences, new operational concepts as well as optimisation of green landings and de-icing operations.

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WIND TURBINES

skeyes collaborates with the wind turbine sector and offers its expertise to developers to ensure that the turbines are installed without interfering with air traffic and, particularly, air safety.

skeyes and Brussels Airport company have developed a new version of the information website BATc.be (Brussels Airport Traffic control). Since the end of 2018, residents can use the website to view real-time relevant information relating to the use of runways, weather observations and forecasts, radar flight tracks, noise measurements and numerous statistics.

By offering all of these new handy services, BATc.be is both a source of reliable information and an educational tool. The information website for residents has, moreover, become a model in Europe, providing the largest amount of real-time operational information to the general public.

With its new BATc.be website, skeyes is demonstrating its commitment to transparency. The company is conscious of its social responsibilities and wants to provide all information necessary for a better understanding of its activities. Runway selection is a complex operation that relies on many factors, with air safety being an absolute priority for skeyes.

1,552  wind turbines active in Belgium

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applications have already been approved. The other applications are in the process of being examined (84), were refused for safety reasons (8), or were withdrawn by the applicant (15)

THE MOST ADVANCED INFORMATION WEBSITE FOR RESIDENTS IN EUROPE

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new applications for permission to install wind turbines submitted to skeyes in 2018

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STRONg PARTNERSHIPSskeyes is preparing for the future: in recent years, the company has been recruiting extensively and investing in numerous strong partnerships in all of its areas of activity, both nationally and internationally. skeyes takes its social responsibilities very seriously, drives innovation, and collaborates with a multitude of experts in order to best serve its employees and customers.

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ENTRY POINT NORTH BELGIUM

A major first for skeyes, in 2018 it established a joint venture and launched a new training centre, Entry Point North Belgium. skeyes joined with Entry Point North, a Scandinavian academy active worldwide that specialises in training for air traffic control occupations.

Entry Point North Belgium provides high quality training within a modern setting at skeyes’ main site. There is a wide and varied range of training programmes available: air traffic control, engineers, technicians, meteorology, aeronautical information, aviation experts, etc. The training is intended both for skeyes personnel and for external partners.

The training site is located at Steenokkerzeel and boasts the latest cutting-edge simulators: 50 radar/pilot stations, five 180° and one 360° 3D tower simulators.

Entry Point North Belgium is a 50:50 joint venture between skeyes and Entry Point North. With this ambitious collaboration, the two organisations are firmly establishing themselves in the Single European Sky of the future.

CO-LOCATION OF CIVIL AND MILITARY AIR TRAFFIC CONTROL

From the end of 2019, civil and military air traffic control will be co-located on the skeyes site at Steenokkerzeel. Military air traffic controllers will join their colleagues from skeyes in the operations room of the cANAc 2 control centre. in October 2018, skeyes and the Belgian Armed Forces signed a framework agreement governing this future structural collaboration.

co-location of civil and military air traffic control will enable even closer exchanges between the two organisations and more flexible use of the Belgian airspace for the benefit of all users.

skeyes and the Belgian Armed Forces also expressed their joint ambition to provide integrated civil and military air navigation services in the Belgian airspace by 2030, offering top-level reliability and optimal efficiency.

COMMON AIR TRAFFIC MANAGEMENT SYSTEM IN BELGIAN AIRSPACE

skeyes, Belgian defence and EUROcONTROL’s Maastricht Upper Area control centre (MUAc) want to use the same air traffic management system from 2024 onwards. Thanks to a single technical solution, the services provided to users of Belgian airspace will be much more efficient. in late November 2018, the three parties signed a Letter of intent with this objective in mind.

This objective will be supported by SAS3, the Shared Air Traffic Management System, by serving as a powerful catalyst for addressing capacity and cost-efficiency challenges in the Belgian airspace. it will also assist with the deployment of an efficient, effective external contingency solution in the event of the failure of any of the installations that provide technical services.

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SESAR

The SESAR (Single European Sky ATM Research) programme is the technological pillar of the Single European Sky. This ambitious programme aims to fundamentally transform the management of air traffic in Europe, making it safer, more efficient and reducing its impact on the environment through the modernisation and harmonisation of European air traffic management systems.

skeyes is actively participating in numerous SESAR projects, including in the areas of satellite navigation and drones.

Other projects include:

VISTAskeyes is part of the viSTA project, which is studying the effects of conflicting market forces on European performance in air traffic management, by evaluating the impact on four key actors in the aviation sector and on the environment. Other partners in the project include the University of Westminster, EUROcONTROL as well as the airlines SWiSS and icelandair.

Engageskeyes is an industrial partner in Engage, the SESAR knowledge transfer network. This is an international platform to encourage research on developments in air traffic management.

Enhanced visual landing systemskeyes is part of the consortium selected to carry out validation testing for a new landing procedure at Antwerp airport. The cockpits of aircraft will be fitted with an enhanced visual system increasing the information available to the pilot. The project was launched in 2018.

SESAR workshopsOn 17 and 18 September 2018, skeyes hosted two workshops by the SESAR deployment Manager: one dedicated to the concept of improved arrivals management in large airports (Extended Arrival Manager); the other dedicated to information management governance and cybersecurity within the context of SWiM (System Wide information Management).

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FABEC

The cEO of skeyes, Johan decuyper chaired the cEO Board of FABEc in 2018. FABEc is the Functional Airspace Block Europe central covering Belgium, the Netherlands, Luxembourg, germany, France and Switzerland under the Single European Sky. This is the largest area of airspace in Europe: almost 60% of all European air traffic travels through this airspace.

While chairman, Johan decuyper worked to enhance the role of FABEc as a platform for exchange and collaboration, both operationally and technologically. Strong partnerships between the air navigation service providers of the six countries and EUROcONTROL are necessary to achieve optimal performance in terms of air traffic safety, fluidity and capacity.

in October 2018, FABEc was the recipient of a prestigious award from ATcA (Air Traffic control Association) in the United States for its innovative research on unpredictable factors in air traffic management as well as extreme climatic conditions.

ANA LUX

Belgian and Luxembourgish air traffic controllers collaborate closely in numerous areas, including risk management, aeronautical information, green landing procedures and satellite navigation, among many others. In 2018, skeyes launched the developmentv of PBN satellite procedures on behalf of the grand duchy of Luxembourg Air Navigation Administration (ANA Lux).

LIVING TOMORROW

in 2018, skeyes joined the Living Tomorrow research and development platform, which is studying visions of the future around themes connected with day-to-day living, including mobility. By participating in this project, skeyes wants to closely examine the future of air traffic and air traffic control. digital transformation will also be studied. Through workshops and demonstrations, skeyes and Living Tomorrow want to develop practical useful ideas.

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ANNUAL REPORT 2018

CORPORATE GOVERNANCE 33

MANAGEMENT REPORT OF THE BOARD OF DIRECTORS 38

REPORT OF THE BOARD OF AUDITORS 50

ANNUAL ACCOUNTS 2018 54

SUMMARY OF THE VALUATION RULES 58

A N N UA L R E P O R T 2 0 1 8

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SKEYES’ GOVERNANCE MODEL

As an autonomous public company, skeyes (formerly Belgocontrol) is subject to the Law of 21 March 1991 on the reform of certain economic public companies. The provisions of the Belgian companies code are only applicable in cases to which the Law of 21 March 1991 expressly refers.

skeyes’ governance model is characterised by: A Board of directors; The creation from within the Board of directors of an Audit committee, a Strategy committee and a Remuneration committee; An Executive committee consisting of the chief Executive Officer and the members of the Executive committee.

in addition there are also the supervisory bodies, such as the Board of Auditors and the government commissioner.

THE BOARD OF DIRECTORS

CORPORATE gOvERNANcE

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9. Hugo Van Bever

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CompositionThe regulations governing the composition and the appointment of the members of the Board of directors are laid down in the Law of 21 March 1991.

The Board of directors is made up of ten members, including the chief Executive Officer and the chairman. The Royal decree of 18 November 2013 constituted a new Board of directors and at least one third of the members are of the opposite sex. in addition, there are as many French speaking as dutch speaking members. The members were appointed for a term of six years.

At 31 december 2018, the Board of directors was composed as follows:

Nom des administrateurs Fonction

Renaud Lorand chairman

Johan decuyper chief Executive Officer

Julie Ludmer director

Liesbeth van der Auwera director

Fons Borginon director

Laurent de Briey director

gérald duffy director

Luc Laveyne director

Claude Melen * director

Hugo van Bever director

* Changes in the composition of the Board of Directors in 2019

On 14 January 2019, Mrs claude Melen resigned her mandate as director for reasons of incompatibility with the resumption of her position at the Belgian court of Audit. Having regard to the government in current affairs, the competent Minister preferred to have the Board of directors appoint a director pending a definitive appointment by the King, in accordance with Article 18 §4 of the Law of 21 March 1991 on the reform of certain economic public companies. consequently, the Board of directors appointed Mrs Sandra Stainier to replace Mrs claude Melen as director.

Powers and functioningThe Board of directors is empowered to take any action necessary for or useful in attaining the corporate goal of the public company and supervises the management tasks carried out by the Executive committee. The Board of directors may delegate some of its powers to the Executive committee.

The Board has adopted an internal regulation which details the rules and principles of its functioning.

The Board meets regularly and at least eight times a year. Additional meetings may be convened each time that the company’s interest requires this or two directors request it.

The chairman convenes the Board. At the end of the calendar year, the timetable for meetings for the following calendar year is set. The agenda of each meeting is set by the chairman and consists of items on which a decision must be taken and items for information.

The Board of directors may only validly deliberate or decide if at least half its members are present or represented at the meeting.

All the decisions are in principle made by a simple majority of directors present or represented. With regard to certain specific issues detailed in the law of 21 March 1991, a two-thirds majority is required, for approval of the management contract for example. These decisions may be prepared by the specialised committees created by the Board of directors.

in 2018, the Board of directors met eleven times.

COMMITTEES SET UP BY THE BOARD OF DIRECTORS The Board of directors has set up three committees, whose task is to assist it and to give it advice in specific fields: an Audit committee, a Strategy committee and a Remuneration committee. The composition and powers of these committees were approved during the meeting of the Board of directors on 28 November 2013. The three committees comply with the principle of language parity.

THE AUDIT COMMITTEEThe existence of this committee is laid down in Article 173 §4 of the Law of 21 March 1991.

CompositionAt 31 december 2018, the Audit committee was composed as follows:

Mr Fons Borginon, chairman, Mrs claude Melen, Mrs Liesbeth van der Auwera and Mr Laurent de Briey.

The government commissioner and the chairman of the Board of directors are invited to the committee and have an advisory vote. in practice, the chief Executive Officer is also invited.

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Powers and functioningThe Audit committee assists the Board of directors in verification of the accounts, budget control and any other internal auditing matters.

The specific mission of this committee is to supervise the biannual and annual financial accounts, the five-year plan and all major investments. The committee prepares these documents for approval by the Board of directors and checks whether the internal audit system is implemented appropriately within the organisation.

An independent internal audit function has been set up as from 1st January 2015. The position provides the Audit committee with objective assurance against the existing risks and internal control over those risks. it also formulates recommendations to management in order to improve internal controls. To that end, an annual audit plan is drafted on the basis of an inventory of the possible subjects (the audit universe or delimitation of the audit basis) of a risk analysis and of an audit horizon in the long term (3  years). The plan will be submitted to the Audit committee for approval. during its meetings, the Audit committee oversees the implementation of the targeted audit programme and the ensuing results.

The chairman of the Audit committee will report on their meetings to the Board of directors and the minutes will be presented to all directors.

in 2018, the Audit committee met 10 times.

THE STRATEGY COMMITTEEThe Strategy committee was set up by the Board of directors in execution of the powers entrusted to it by Article 17 §4 of the Law of 21 March 1991.

CompositionThe Strategy committee is composed of six members of the Board of directors.

Mr Renaud Lorand, chairman, Mrs Julie Ludmer, Messrs Johan decuyper, Luc Laveyne, Hugo van Bever and Laurent de Briey.

The government commissioner is also invited to the meetings.

Powers and functioningThe Strategy committee assists the Board of directors in deciding the company strategy. Amongst other things it

gives advice on the strategic priorities and on the development of the company internationally.

The Strategy committee meets at the invitation of its chairman, who also sets the agenda. The Strategy committee met once in 2018.

THE REMUNERATION COMMITTEEThe existence of this committee is laid down in Article 17 §4 of the Law of 21 March 1991.

CompositionThe Remuneration committee is composed of four directors appointed by the Board of directors:

Mr Renaud Lorand, chairman, Messrs gerald duffy, Hugo van Bever and Luc Laveyne.

Powers and functioningThe Remuneration committee makes recommendations to the Board of directors regarding decisions on the direct and indirect monetary benefits granted to the members of the management bodies.

Every year the Remuneration committee draws up a report on the remuneration of the members of the Board of directors and the Executive committee, which is included in the management report. The remuneration report for 2018 is detailed on page 44.

The Remuneration committee meets at the invitation of its chairman, who also sets the agenda. in 2018, the Remuneration committee met four times.

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THE CHIEF EXECUTIVE OFFICER AND THE EXECUTIVE COMMITTEE

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2. Christian Berlanger, Director-General International & Public Affairs

3. Alain Vandenabeele, Director-General Digital Transformation & New way of Working

4. Peggy Devestel, Chief Operations Officer

5. Hilde Van den Houten, Director-General Finance & Support

6. Youcha Mackelbert, Director-General Program & Project Delivery

THE CHIEF EXECUTIVE OFFICERThe chief Executive Officer By Royal decree of 2 October 2013, Mr Johan decuyper, was appointed as chief Executive Officer of skeyes, as from this date for a term of six years.

The Executive CommitteeThe chief Executive Officer and the members of the Executive committee together constitute the Executive committee. The Executive committee is chaired by the chief Executive Officer (art. 20 of the law of 21 March 1991).

The regulations governing the appointment of the chief Executive Officer and other members of the Executive committee are set by the law of 21 March 1991.

CompositionOn a proposal from the chief Executive Officer and after consulting the Remuneration committee for advice, the Board of directors appoints members of the Executive committee, excepting the chief Executive Officer.

in addition to the chief Executive Officer, Mr Johan decuyper, the Executive committee was composed at 31 December 2018 as follows:

Mrs Peggy devestel, chief Operations Officer, Mr Alain vandenabeele, director-general digital Transformation & New way of working, Mr christian Berlanger, director-general international and Public Affairs,

Mrs Hilde van den Houten, director-general Finance and Support, Mr youcha Mackelbert, director-general Program & Project delivery.

Powers and functioningThe Executive committee is responsible for daily management and representation of this management, as well as for the execution of the decisions of the Board of directors. The Executive committee represents the company in negotiations concerning the management contract. The members of the Executive committee constitute a board chaired by the chief Executive Officer. The decisions of the Executive committee are in principle taken by consensus.

in 2018, the Executive committee met 41 times.

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THE BOARD OF AUDITORS

As do all autonomous public companies, skeyes entrusts the verification of its financial position, of its annual accounts and their regularity in the eyes of the law, and the operations shown in the annual accounts, to a Board of Auditors.

The Board of Auditors is composed of two company auditors and two members of the court of Audit.

Every year the Board of Auditors draws up a detailed written report, which is submitted to the Board of directors and to the Minister responsible for skeyes.

As at 31 december 2018, the Board of Auditors consisted of: Ernst & young Bv cvBA, represented by Mrs Marleen Mannekens, Mr Jean-Michel Haegeman, company auditor, Mr Philippe Roland, First chairman of the court of Audit, Mrs Hilde François, chairwoman of the dutch speaking chamber of the court of Audit.

THE GOVERNMENT COMMISSIONER

As an autonomous public company, skeyes is subject to the supervisory powers of the Minister to whom it reports, in this case the Minister for Mobility responsible for skeyes. This supervision is carried out by the government commissioner who ensures the company complies with the law and the management contract. The government commissioner reports to the Minister for Mobility.

Mr Michaël vanloubbeeck has been appointed since 18 July 2016 Government Commissioner.

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A N N UA L R E P O R T 2 0 1 8

1. COMPANY’S MAIN ACTIVITIES IN 2018

2018 was another particularly successful year for the aviation sector in Europe in terms of growth. in Belgium, airlines and airports once again attracted a record number of passengers (more than 34 million) and saw a record amount of goods passing through (1.6 million tonnes of freight). This growth is also reflected in skeyes’ results: in 2018, a total of 1,101,145 air movements were managed, i.e. an increase of 2.4% on 2017.

The largest increase in the number of movements (in absolute values) was recorded at the cANAc 2 control centre, which manages overflight and approach traffic: for the first time in its history, the control centre notched up more than 600,000 air movements managed in one year in 2018 (612,138 movements in total). This increase corresponds to 3.2% growth in traffic in one year. On average, CANAC 2 controllers safely guide almost 1,700 aircraft per day.

in terms of terminal activity, the number of air movements increased at all the airports in the country, with the exception of Brussels Airport. in total, 235,459 take-offs and landings took place in 2018. The slight dip at Brussels Airport compared with the previous year (-1%) is due to the presence of larger aircraft as well as a higher occupancy rate. The number of passengers transported further increased to an absolute record in 2018 (25.7 million passengers).

At regional airports, the number of movements increased across all sites in 2018: Antwerp (55,925 movements or +1.6%), Charleroi (96,754 movements or +4.9%), Liège (58,171 movements or +5.8%) and Ostend (42,698 movements or +1.1%). Walloon airports set new visitor records in 2018: charleroi recorded more than 8 million

passengers, and more than 870,000 tonnes of freight passed through Liège Airport. For the first time, skeyes is in a position to report on a full year of service at Kortrijk Airport (operations began in November 2017), where skeyes employees provided flight information to 34,889 aircraft in 2018.

Service units, which notably include the weight of the aircraft, were up across all skeyes units (+1.9% for en-route service units and +4.6% for service units in airports).

generally speaking, the continuous growth in the activity of the cANAc 2 centre for several years as well as the increase in the number of service units in all the country’s airports is a positive sign for skeyes and the Belgian economy.

1.1. SAFETY: SKEYES’ TOP PRIORITYTaking into account the degree of complexity of Belgian airspace and the density of traffic, skeyes’ safety performance is again very good: in 2018, there was one category A incident (severe) in which skeyes bears some responsibility and three category B incidents (major). The proportion of A and B incidents therefore remains very low: it is only 0.00036% out of all the controlled movements. The objective of not exceeding one category A and B incident per 100,000 controlled movements was therefore once again met in 2018.

Moreover, the safety performance in 2018 was also the second best result recorded by skeyes, after that recorded in the record year 2016 (0 A and B incidents). By way of comparison, skeyes recorded no fewer than 22 A and B incidents in 2000. in 2017, the company also recorded the result of 4 A and B incidents - given

MANAGEMENT REPORT OF THE BOARd OF diREcTORSPlease find below the report on the position and results of the autonomous public company for the financial year 2018 in accordance with the legal provisions.

This report is drawn up pursuant to Article 27 of the Law of 21 March 1991 reforming certain economic public companies.

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the growth in traffic, the 2018 score is therefore better. This positive trend is down to the day-to-day work of the air traffic controllers and all the staff working for skeyes, whose top priority is safety. in more structural terms, the safety management system (SMS) used in all the company’s operational departments as well as the culture of open and constant notification and the concept of Just culture are paying off: they make it possible to approach security in a proactive, responsive, systematic and formalised manner and provide a set of processes to continuously improve, assess and monitor safety.

The FABEc (Functional Airspace Block Europe central) performance plan imposes joint and individual contributions for air navigation service providers in order to achieve the overall objectives of the Single European Sky in four areas: safety, capacity, the environment and cost efficiency. 2018 is the fourth year of the second reference period, which runs from 2015 to 2019.

Within the European performance plan, there are three safety objectives which skeyes must meet. Two are qualitative: use of the Risk Analysis Tool (RAT) to classify incidents according to order of severity and the application of the Just culture principle. These two objectives were met: the Just culture policy is applied at skeyes and the RAT is used for non-compliance with minimum separations, runway incursions and technical incidents.

The third objective is quantitative and concerns the maturity of the safety management system (SMS). skeyes contributes to the Safety Maturity Survey (EoSM - Effectiveness of Safety Management) - an audit aimed at measuring the effectiveness of its safety management.

26 objectives in 11 areas are put under the microscope. In 2018, skeyes improved its score by five points and comfortably exceeded the objective set. The company is predicting a further increase in the maturity of the SMS in 2019. skeyes is in the process of achieving all the objectives imposed by the European commission (by 31 December 2019).

The SMS is also responsible for promoting the safety culture across the company. This has progressed significantly in recent years – the number of incidents reported has increased sharply (+150% compared with 2014). skeyes’ air traffic controllers systematically report all incidents, however small and insignificant they may be. A total of 1,489 incidents were reported in 2018. However, this number is down compared with the record year 2017 (-18%). This observation is followed closely by skeyes.

However, a clear trend will only emerge over the next few years.

1.2. INVESTMENTS: A SERVICE GUARANTEE FOR OUR CUSTOMERSin order to guarantee the availability of its key services at all times, skeyes has drawn up a global plan which continued to be implemented in 2018. considerable investments have been made to increase the redundancy of critical infrastructures. In 2018, skeyes invested EUR 20.6 million in modernising its technical infrastructures and systems.

Among other things, skeyes completely updated its air traffic management system to guarantee its performance and stability over the coming years. in a single night, all cANAc 2 workstations were replaced and migrated to the new system, without any impact on air traffic or the smooth running of operations. comparable to open heart surgery, this major transition was made possible thanks to the teamwork of skeyes’ technical and operational experts.

in order to prepare for the co-location of civil and military air traffic control, several major works were carried out during 2018 at skeyes. En-route air traffic controllers from Belgian Defence will move into the part of the CANAC 2 centre previously dedicated to the testing and training of air traffic controllers and technical teams. These positions have consequently been transferred to a fully renovated room, where some of the positions are now dedicated to testing only and more training positions have been created, significantly increasing the training capacity.

in addition, skeyes has launched a vast project to modernise its network of air navigation beacons in Belgium. in total, the company has 14 dvOR and dME beacons across the country. conventional navigation beacons ensure that pilots can fly according to published procedures and travel safely through the airspace.

Among others, the BUB beacon located close to Brussels Airport was replaced in 2018.

Finally, skeyes pulled out all the stops to replace its entire radio system in 2018 (almost 400 stations across 18 sites). The company is fully compliant with the new European regulation on 8.33 kHz channel spacing and is one of the leaders in this area in Europe.

1.3. INNOVATION: DRONES AND DIGITAL TOWERSdrones will fundamentally change the way the aviation sector operates in the future: they are both a challenge for air traffic management and an opportunity for new

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economic possibilities. For several years now, skeyes been fully leveraging innovation and developments in the aviation sector. As a result, the company has a leading position when it comes to drones. As a member of the European U-space demonstrator network, skeyes plays an active role in many large-scale projects.

skeyes has developed a digital platform for drone users in Belgium. Available since 2018, the droneguide.be app allows users to see quickly and easily where and under what conditions they can fly drones in Belgium. Furthermore, droneguide.be provides an additional layer of safety by informing the pilot whether other drones are active nearby and require their attention. From 2019 onwards, a “pro” version of droneguide.be with additional features will be available for professional pilots.

Launched in 2018, the SAFiR project aims to safely integrate a wide range of drone operations into air traffic at Antwerp Port, a complex urban and industrial environment. The 13 partners in this SESAR project include Amazon Prime Air, Unifly, SABcA and skeyes.

skeyes is also an active partner of the “Helicus Aero initiative”. This Belgian project, which began in 2018, aims to set up a system for transporting medical packages using drones between hospitals as well as hospital laboratories and pharmacies.

Another area of innovation is digital control towers. skeyes and the Walloon airports company (SOWAER) intend to develop a digital air traffic control centre for Liège and charleroi Airports. Following a successful feasibility study, preparations for the start of the project are underway. In this way, both organisations are responding to the growing needs of the Walloon airports and fully supporting them in their development.

1.4. ENTRY POINT NORTH BELGIUM: QUALITY TRAINING AT SKEYESin a first in the company’s history, skeyes has founded a joint venture and launched a new Entry Point North Belgium training centre on 3 September 2018. skeyes has joined forces with Entry Point North, a Scandinavian academy with a worldwide presence, specialising in vocational air traffic control training.

Entry Point North Belgium provides high-quality training in a modern environment at skeyes’ main site. The range of training courses is broad and varied: air traffic control, engineers, technicians, meteorology, aeronautical information, aviation experts, etc. The training courses are

aimed at both skeyes staff and external partners. The training site is located in Steenokkerzeel and is equipped with new state-of-the-art simulators: 50 radar/pilot stations, five 180° and one 360° 3D tower simulators.

Entry Point North Belgium is a joint venture owned equally by skeyes and Entry Point North. Thanks to this ambitious collaboration, both organisations are firmly established in the Single European Sky of the future.

1.5. ECONOMIC EFFICIENCY: THE BEST SERVICE FOR THE BEST COSTin the area of the cost efficiency of en-route services, the performance plan submitted by Belgium-Luxembourg provides for a reduction in the determined Unit cost (dUc) for Belgium-Luxembourg serving as a basis for the invoicing of the en-route services provided by skeyes of 12.9% between 2014 and 2019. The dUc for 2018 decreased by 2.2% compared with the previous year (dUc 2017 = EUR 60.04 vs. DUC 2018 = EUR 58.74, expressed in 2009 real terms). in 2018, actual traffic was 0.2% lower than forecast by EUROcONTROL when the revised performance plan was prepared in 2015.

in terms of the cost efficiency of terminal activities, skeyes has continued to reduce the costs of providing services to airports in order to achieve the objective, set by the management contract, of an annual reduction of 2.5% as a weighted average over the period from 2015 to 2019. The dUc weighted average decreased from EUR 248.14 in 2017 to EUR 244.17 in 2018.

1.6. PUNCTUALITY: EXCELLENT PERFORMANCE AT SKEYESThree out of the four areas of the FABEc performance plan (safety, capacity, environment) are evaluated afterwards by the European commission’s Performance Review Body for all six FABEc member states (Belgium, Luxembourg, germany, France, the Netherlands and Switzerland). For its part, skeyes has to make an individual contribution based on FABEc’s overall performance. As in 2017, FABEc fell short of its objectives in the areas of capacity and the environment.

1.6.1. En-route performanceAs regards capacity, a top indicator is the average en-route ATFM delay per flight. As regards the objectives for this indicator, on the one hand there is the overall FABEc objective to limit the average en-route delay for 2018 to 0.42 minutes per flight (for all causes) and to 0.33 minutes per flight for cRSTMP causes (c-capacity, R-Routing, S-Staffing, T-Equipment, M-Airspace management,

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P-Special events), i.e. the causes that the service provider can control. On the other hand, there is the individual contribution by service providers to the overall objective. For skeyes, this is to limit the average en-route delay in 2018 to 0.08 minutes per flight for all causes of delay and to 0.07 minutes per flight for CRSTMP causes.

in 2018, despite a summer period characterised by strong growth in air traffic and numerous delays in Europe, skeyes recorded the second best performance across all FABEc partners, with an average en-route delay per flight of just 0.11 minutes. despite this, skeyes failed to achieve its individual contribution to the overall FABEc objective. It should be noted that, as for the first reference period (2012-2014), skeyes has by far the most ambitious individual FABEc contribution.

given the expected growth in air traffic in Europe for summer 2019 and the saturation of the upper airspace as well as of adjacent control centres, the network manager (EUROcONTROL) has defined an action plan to improve performance in Europe. As a result of this action plan, the air traffic managed by skeyes will be even greater, with an unfavourable impact on performance in 2019.

skeyes took part in two consultation meetings for airspace users: one for en-route activities (26 October 2018) and the other for airport terminal activities (23 August 2018). during these meetings, the previous year’s performance was reviewed and analysed.

All FABEc ANSPs recorded an average delay of 2.12 minutes per flight in 2018, when the objective was not to exceed 0.42 min/flight. For cRSTMP causes, the recorded delay was 1.40 min/flight when the maximum objective was 0.33 min/flight. This performance is likely to deteriorate further in 2019.

1.6.2. Airport punctualityTwo objectives were set for skeyes regarding Brussels and Liège Airports: to limit the average delay per flight (cRSTMP causes only) to 0.11 minutes at Brussels Airport and to 0.06 minutes at Liège Airport.

At Brussels Airport, the objective was met in 2018: the average arrival delay per flight was 0.08 minutes (0.14 minutes in 2017). The objective was also comfortably met for Liège Airport, since the average delay per arrival was zero (0.02 minutes in 2017). No targets have yet been set for the other airports. At charleroi Airport, the average arrival delay (cRSTMP causes) was 0.02 minutes per flight (0.05 minutes in 2017). At Ostend, the average arrival delay

was 0.01 minutes per flight in 2018 (zero in 2017). At Antwerp, no average arrival delay was recorded in 2018.

1.7. ENVIRONMENT: SHORTER DISTANCES TRAVELLEDWhen it comes to the environment, in order to assess the efficiency of aircraft trajectories, the indicator is the horizontal efficiency of en-route flights (KEA - Key Performance Environment indicator based on Actual Trajectory). This indicator uses a calculation method to compare the trajectory followed by an aircraft with the shortest possible route between the departure airport and the arrival airport. The notion of achieved distance introduced by the European commission for this second reference period (2015-2019) allows local efficiency losses (local FABEc performance) to be differentiated from efficiency losses due to the network (entering or leaving FABEc space).

One objective set in the FABEc performance plan was to reduce the difference between the shortest route and the route actually travelled to a maximum of 2.96% by the end of 2019. The intermediate value for 2018 was set at 3.05%. No individual contribution to this joint objective was set for FABEc members.

in 2018, the difference between the ideal route and the en-route distance travelled by aircraft was 3.25% on average in FABEc airspace. This is the second best result recorded since 2014. given the increase and volatility of air traffic, this performance comes very close to the objective set.

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2. FINANCIAL DATA FOR THE FINANCIAL YEAR 2018

2.1. BALANCE SHEET(in thousands of euros)

ASSETS 31/12/2017 31/12/2018 Change

Fixed assets 102,466 112,853 10.1%

current assets 170,068 196,522 15.6%

Total assets 272,534 309,375 13.5%

The amount of fixed assets is 10.1% higher than at the end of 2017 because a sum of EUR 20 million was recognised for new investments (compared with EUR 20 million in 2017).

in addition, a 50% stake (200 kEUR) was acquired in the capital of Entry Point North Belgium SA/Nv, a joint venture founded by skeyes and Entry Point North with the purpose of providing training.

current assets increased, mainly due to an increase in customer receivables and an improvement in skeyes’ cash flow situation.

in addition, this item includes the asset accruals and deferrals, which include the Belgian contribution to EUROcONTROL operating costs for the first quarter of 2019 (EUR 14.2 million) and the correction mechanisms for en-route activity in 2016, 2017 and 2018 (EUR 7.8 million).

This correction mechanism mainly concerns the costs of support services provided to MUAc by EUROcONTROL headquarters and the pension costs of former MUAc employees.

skeyes paid these costs but reported them to the European commission in accordance with European Regulation 391/2013 in order to recover them from the airlines during the period 2020-2024.

(in thousands of euros)

LIABILITIES 31/12/2017 31/12/2018 Change

Equity 212,524 229,239 7.9%

Provisions 17,005 18,000 5.9%

debts 43,005 62,136 44.5%

Total liabilities 272,534 309,375 13.5%

Equity increased by EUR 16.7 million, i.e. the amount of the 2018 profit.

From 2010 to 2014 inclusive, a large proportion of our terminal air navigation services were not remunerated, when the regulations required us to provide them. This led to significant losses in the past.

A change took place in January 2015. With the application of the third management contract and the Royal decrees laying down the cost financing arrangements for the provision of terminal services in 2015, 2016, 2017 and 2018, the covering of the costs for terminal services that had not been passed onto users by that point was billed to the Belgian State.

in this way, a structural solution was provided to the loss of earnings from the past, and the financing for skeyes’ terminal activity became compliant with European regulations. in addition, the third management contract states that all airports, including regional ones, should be subject to the European regulation on the charging system, which ensures transparency of costs for each airport, and that the required information should be made available to airspace users and the competent bodies.

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In 2018, we made a profit of EUR 16.7 million, compared with a profit of EUR 22.5 million in 2017.

The increase in turnover comes from both the en-route service and the terminal service. The en-route turnover accounts for 72% of total activity and has increased due to an increase in the number of service units (+2%), partly offset by the application of a lower en-route billing rate. Terminal services account for 26% of the turnover.

On the cost side, “Services and other goods” was up, mainly due to an increase in the contribution to the operating budget of MUAc (EUROcONTROL) and the conclusion of new assistance contracts.

Following the downward trend in the workforce up until 2015, the number of full-time equivalents increased again in 2018, to 842.3.

As in 2016 and 2017, exams were organised in 2018 to recruit air traffic controllers, enabling 28 candidate air traffic controllers to begin their training.

Staff costs have mainly increased as a result of recruitment, training costs for new staff members and salary indexation.

Change in the numbers of FTEs

700

750

800

850

900

950

201820172016201520142013201220112010

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875.0

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784.2769.4 776.2

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TEs

2.3. APPROPRIATION OF THE 2018 RESULT(in thousands of euros)

APPROPRIATION OF THE RESULT 31/12/2018

Profit to be appropriated 2018 16,714

Profit brought forward from the previous year 13,732

Profit to be appropriated 30,446

Allocation to the legal reserve 11,565Allocation to the available reserve 18,881

30,446

Now that the losses brought forward from the past have been fully discharged and the profit for the financial year allows, it has been decided to make up the backlog in establishing the legal reserve. The legal reserve has been increased to the threshold of 10% of the capital (+EUR 11.6 million, or from EUR 2.9 to 14.5 million). The balance of the profit to be appropriated (EUR 18.9 million) has been allocated to the available reserve.

2.2. PROFIT AND LOSS ACCOUNT(in thousands of euros)

PROFIT AND LOSS ACCOUNT 31/12 /2017 31/12/2018

Turnover 234,766 240,363

Other operating income 1,453 2,018

Non-recurring operating income 302 22

Operating income 236,521 242,403

Services and other goods 74,074 78,843

Remuneration, social security contributions and pensions 124,612 135,462

Amortisation 13,121 10,029

Write-downs and provisions 1,331 525

Other operating expenses 736 793

Non-recurring operating expenses 252 5

Operating expenses 214,126 225,657

Operating result 22,395 16,746

Financial result 103 -32

FINANCIAL YEAR PROFIT/LOSS 22,498 16,714

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3. REMUNERATION OF THE MEMBERS OF THE MANAGEMENT BODIES

Article 17 §4 of the Law of 21 March 1991 stipulates that the Remuneration committee shall prepare an annual report on the remuneration of the members of the management bodies, which shall be included in the management report.

The Royal decree of 2 October 2013 appointed Mr Johan decuyper as chief Executive Officer of skeyes from 2 October 2013 for a period of six years. Subsequently, the Royal decree of 18 November 2013 appointed the chairman and members of the Board of directors of skeyes for a period of six years starting on 22 November 2013.

3.1. THE MEMBERS OF THE BOARD OF DIRECTORSThe remuneration received by the members of the Board of directors on account of their directorship is set by the King pursuant to Article 21 §2 of the Law of 21 March 1991.

Within the Board of directors established since 22 November 2013, the directors (with the exception of the chief Executive Officer) and the chairman receive, on the basis of the Royal decree of 18 November 2013, a gross annual remuneration of EUR 11,155.20 and EUR 52,057.64 respectively, linked to the pivotal index 138.01.

The directors also receive an attendance fee for their participation in the specialised committees created within the Board of directors (Audit committee, Remuneration committee, Strategic committee) on the basis of the Royal decree of 3 May 1999. This attendance fee amounts to EUR 371.84, is not index-linked and the annual total may not exceed 1/3 of the annual basic remuneration as a director.

For the financial year 2018, the gross remuneration (in EUR) received by the members of the Board of directors was as follows:

Directors Remuneration Attendance fees (*) Total gross remuneration

LORANd Renaud (Président) 73,970.90 5,577.60 79,548.50

BORgiNON Fons 15,850.94 3,718.40 19,569.34

de BRiEy Laurent 15,850.94 4,090.24 19,941.18

dUFFy gerald 15,850.94 1,115.52 16,966.46

LAvEyNE Luc 15,850.94 1,859.20 17,710.14

LUdMER Julie 13,691.77 371.84 14,063.61

MELEN claude 15,850.94 2,602.88 18,453.82

vAN BEvER Hugo 15,850.94 1,859.20 17,710.14

van der AUWERA Liesbeth 15,850.94 2,231.04 18,081.98

198,619.25 23,425.92 222,045.17

(*) Including attendance fees paid in 2019 for the December 2018 meetings.

The attendance rate at meetings of the Board of directors was 86.36% (CEO included).

in 2018, the Board of directors met 11 times. Mr de Briey and Mrs Melen were absent from one meeting. Mrs Ludmer did not attend two meetings, and Mr Duffy

and Mr Van Bever missed three meetings. Mrs Van der Auwera did not take part in five meetings. The other Board members were present at all the meetings.

Among the directors who are members of the Audit committee, Mrs Melen and Mrs van der Auwera missed

2.4. EVENTS THAT OCCURED AFTER THE BALANCE SHEET DATEAt the beginning of 2019, skeyes is going through a period of social tensions with significant financial consequences for the company and its customers. in accordance with accounting rules, these events cannot be taken into account in the compilation of this balance sheet (results 2018). Moreover, it is not yet possible to assess the consequences to date.

The law proposal amending the law of 21 March 1991 reforming certain public economic companies in order to change the corporate name of the autonomous public company "Belgocontrol" to "skeyes" was adopted in plenary session of the chamber on 4 April 2019. The change of the official name will take effect as soon as the law is published in the Belgian Official Journal (Belgisch Staatsblad/Moniteur belge) (7 May 2019).

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3 and 4 meetings respectively out of the ten held in 2018. The other members attended all meetings.

Among the directors who are members of the Remuneration committee, Mr duffy missed one of the four meetings held in 2018. The other members attended all four meetings. The Strategy committee met once in 2018 and all the directors who are members of it were present.

3.2. THE EXECUTIVE COMMITTEEin accordance with Article 17 §4 of the Law of 21 March 1991, the remuneration and benefits granted to the chief Executive Officer and the members of the Executive committee are decided by the Board of directors at the proposal of the Remuneration committee.

When each member of the Executive committee took office, the fixed portion of this remuneration was the subject of a specific agreement in accordance with Article 21 of the Law of 21 March 1991. The Remuneration committee set the amount and composition of this remuneration at this time and separately based each case on a benchmarking study relating to comparable levels of responsibility.

When setting the cEO’s remuneration at the end of 2013, the relevant guidelines laid down by the government were taken into account. Based on these guidelines, and at the proposal of the Remuneration committee, the Board of directors set out a remuneration system in the cEO’s specific agreement providing for the granting of a fixed gross annual salary, a variable gross salary and a certain number of additional benefits.

The chief Executive Officer does not receive any specific remuneration in his capacity as a member of the Board of directors.

Variable remuneration for services in 2017in 2018, the members of the Executive committee received a variable remuneration for the services provided in 2017.

Additional benefits in 2018The chief Executive Officer and the other members of the Executive committee received a number of additional benefits in 2018, such as a company car and hospitalisation insurance; the contractual members of the Executive committee also received “loss of income insurance” and group insurance.

For the financial year 2018, the fixed salary, allowances and other benefits (in EUR) received by the members of the Executive committee were as follows:

Fixed salary (*)

Variable remuneration

and other benefits

Total gross remunera-

tion

chief Executive Officer 212,311.78 94,712.72 307,024.50

Managing directors 967,239.14 271,191.41 1,238,430.55

TOTAL 1,179,550.92 365,904.13 1,545,455.05

(*) Fixed salary = ordinary salary + holiday allowance + end-of-year bonus (depending on the start and end dates of the term of office)

Regularisation holiday allowance on variable remuneration 2013-2015

chief Executive Officer 18,322.59

Managing directors 22,283.13

TOTAL 40,605.72

3.3. THE GOVERNMENT COMMISSIONERMr Michaël vanloubbeeck was appointed as the Government Commissioner on 18 July 2016. In 2018, he received a gross remuneration of EUR 21,190.68.

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4. SKEYES: WE ARE HIRING

Since 2015, skeyes has been recruiting at full capacity. The company is once again profitable and is preparing for the future. The efforts of skeyes’ recruiters are not insignificant: in recent years, more than 250 new employees have joined the company. in the coming years, skeyes will continue to hire staff; on the one hand to absorb retirements, but also as a growing company with future ambitions to continue innovating.

YearNew hires

(in full-time equivalents)Departures

(in full-time equivalents)

2014 8.7 50.5

2015 43.8 33.2

2016 56.9 46.5

2017 82.7 42.8

2018 72.7 45.9

The greatest recruitment efforts focus on air traffic control, the company’s core activity. As a result, 28 aspiring air traffic controllers began their training at skeyes in 2018. in addition, 27 young people completed their intensive two-year training programme (theoretical modules and work placements) and joined various control towers.

New Air Traffic ControllersSince 2015, more than 100 aspiring air traffic controllers have started training at skeyes. Over the same period, the company received more than 7,500 applications during consecutive recruitment campaigns, and more than 4,000 young people took part in selection exams. The success rate is around 3%.

skeyes is also hiring in other areas of activity: technical services, meteorological department, innovation, flight information, support services, etc.

in early September 2018, skeyes and the Scandinavian training institute Entry Point North launched their joint venture Entry Point North Belgium. This training centre is located at skeyes’ main site in Steenokkerzeel and supports the company in training its staff (air traffic controllers, technical services, etc.). Previously, aspiring air traffic controllers had to travel to Malmö in Sweden, as basic

training no longer took place here. Thanks to Entry Point North Belgium, the entire training is once again carried out in Belgium.

4.1. A DREAM AND A VISION FOR ALL“We will bring the most save, sustainable and unique experience to every single airspace user”: at the end of 2017, skeyes developed its new vision to offer every airspace user the safest, most sustainable and unique experience. implementation took shape in 2018.

To make this vision a reality, skeyes relies on three strategic pillars:

Partner with our customers ; Partner with our people ; Build a future-proof company.

For this vision to become a reality, skeyes is convinced that it needs to be implemented with all employees and stakeholders. consequently, skeyes is investing heavily in sustainable relationships of trust with its customers. The company is also improving its service and continuity of service.

internally, customer focus is also a central element. Through “strategy in action” workshops held in early 2018, skeyes challenged its employees to contribute to the company’s strategy within their own team. in addition, employees brainstormed how the values can be transformed into everyday behaviours. New communication platforms were launched: half-yearly management roadshows across all company sites to engage in dialogue with employees, interactive information sessions about ongoing projects, etc.

Thanks to these initiatives and the daily efforts of our employees, skeyes is putting its vision into practice, so that it is not just a dream.

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2014 2015 2016 2017 2018

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5. COMMUNICATION

2018 was a very special year for skeyes: on 7 and 8 November, the company celebrated its 20th anniversary. it took advantage of this unique opportunity to mark the occasion by revealing its new name and identity to employees as well as its main customers and partners.

Established in 1998 as the successor to the Regie der Luchtwegen/Régie des voies Aériennes, the autonomous public company Belgocontrol wanted to reflect its new strategic direction through a new name and a new identity: skeyes - nice to guide you. Our new name combines a feeling of safety - the partner who (fore)sees everything - with a human touch. The eyes of skeyes instil confidence: they are concentrating on our company’s most important activity, i.e. the safety of the airspace and its users. in addition, our eyes are focused on the needs of our customers and partners as well as on future developments in the aviation sector. The new name is the culmination of a profound journey of transformation that began several years ago. in fact, the company has changed course, with its central priorities still being air traffic safety - of course - as well as a sound financial position, customer focus, service continuity, improved economic efficiency and transparent communication. The process of change is reflected in the vision and mission as well as in the new corporate culture, established together with staff through the “Horizon 2020” programme.

At the same time as presenting the new name and graphic identity, skeyes launched its new website on 8 November 2018 (https://www.skeyes.be). Modern, functional and streamlined, the site gives an overview of the company, its activities and the services it offers. The “your safe flight” module explains to users how skeyes manages air traffic safety: from take-off clearance through to en-route control to landing safely thanks to the technical infrastructure on the ground. A blog presents all the topics related to the three key themes: safety, sustainability and innovation. Professionals (pilots, handlers, airlines, etc.) can access the operational part of the website, where the aeronautical and meteorological information they need for their flights can be found.

in 2018, skeyes continued to grow towards being a more communicative and transparent company. We make maximum use of external communication channels: digital newsroom (https://press.skeyes.be) aimed at the press and stakeholders as well as social networks (Linkedin, Facebook, Twitter, youTube and instagram) aimed at the general public. Through these channels, we transmit both

operational information in real time and corporate and strategic information about the company.

skeyes communicated (pro)actively and intensively with and via the press, distributing numerous press releases throughout the year and responding to numerous questions from journalists. skeyes invited the press several times in 2018, including for a conference on air traffic safety.

As part of the rebranding, skeyes launched a video campaign (including #storyofskeyes and #exploringskeyes) on social networks, introducing the company and its employees through short portraits. The videos were viewed several tens of thousands of times and generated hundreds of likes, shares and comments. Questions from users asked via social networks or e-mail were systematically answered.

Working with Brussels Airport company, skeyes launched a new version of the information website for residents living near the airport at the end of 2018. BATc (Brussels Airport Traffic control - https://www.batc.be) provides useful information in real time regarding the use of the runways, weather observations and forecasts, radar charts, noise measurements and a number of statistics. By offering these new services, BATc.be is both a reliable source of information and an educational tool. in addition, the information website for local residents has become a benchmark in Europe, making the maximum operational information available to the general public in real time.

For the fourth year in a row, skeyes took part in company Open day (Open Bedrijvendag/Journée découverte Entreprises) in 2018, both at its main site in Steenokkerzeel and at Liège Airport. The 1,200 spaces to visit skeyes (control tower and cANAc 2 centre) were snapped up in the record time of less than five minutes.

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6. THE FUTURE

2019 will be an important milestone for skeyes’ objectives and partnerships in many business areas. The company will continue its transformation work according to the strategic outlines defined.

6.1. PARTNER WITH OUR CUSTOMERSskeyes wants to continuously improve the services it provides to its customers and stakeholders. To this end, the 2014-2019 investment plan (EUR 97 million) is continuing.

The most visible project will be the effective implementation of the co-location of military and civil air traffic control centres within skeyes’ premises. The company will also continue to invest in safety and airport capacity, with the completion of work to install an A-SMgcS (ground radar with safety nets) at Liège and charleroi. At Brussels Airport, a radar system will be installed to obtain reliable information about wind on the approach. Systems and equipment (dvOR, iLS, radars, communication systems, weather systems, etc.) will continue to be upgraded in 2019 in order to improve the reliability of our services.

Finally, skeyes wants to enter into strategic partnerships with airports in order to improve its proximity to its customers.

6.2. PARTNER WITH OUR PEOPLEExpanding fast, skeyes will continue to hire additional employees in 2019, including by launching a new recruitment campaign for air traffic controllers. Significant resources will also continue to be allocated to optimising support services (finance, procurement, accounting, infrastructure management, etc.) as well as improving human resources management (rostering, digital transformation of HR processes, etc.).

skeyes attaches considerable importance to well-being at work, work-life balance and new forms of work. Major Well-being and New Ways of Working projects will be launched and implemented in 2019 to benefit the company’s employees.

The “Horizon 2020” participatory campaign, which helps explain skeyes’ strategy to its employees, will be continued in 2019 with a number of activities. A Family day for all the staff is also planned.

Mindful of its social and environmental responsibility, skeyes is going to develop a concrete action plan in 2019 as

part of a global sustainable development approach (corporate Social Responsibility).

6.3. BUILD A FUTURE-PROOF COMPANY

Aviation in general and air traffic control in particular are constantly changing. skeyes is planning its future by closely following developments in the sector. The company also wants to increase its societal role by rising to the challenge of reconciling economic and ecological interests. At the same time, skeyes is leveraging innovation and new technologies.

in the area of drone management, skeyes is developing new services and implementing pilot projects on an international scale (SAFiR, MEdRONA, etc.). The pro version of droneguide.be will also be launched in 2019.

in partnership with EUROcONTROL and the department of defence, skeyes will begin an implementation study for a shared airspace management system for the three organisations which manage Belgian airspace (Shared ATM System - SAS3).

Working with the Walloon airports company, skeyes will begin a digital tower project for Liège and charleroi Airports - a real technological revolution in the world of air traffic management.

Finally, at airspace level, the optimisation of airspace management and the transition towards performance-based navigation (PBN) will continue in 2019.

in an effort to reduce the environmental footprint of aviation, skeyes is continuing to work closely with airlines and airports to reduce the impact of operations on the environment, among other things by working to optimise “green landings”. skeyes will also remain present on the renewable energy front by contributing to the installation of new wind turbines and ensuring their harmonious development with air traffic.

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A N N UA L R E P O R T 2 0 1 8

REPORT OF THE BOARD OF AUDITORSThe Dutch and French versions of the Report and the 2018 Annual Accounts have been officially approved. The English version is not signed and for information purpose only.

In accordance with the articles of association of the company and the provisions of the law, and more particularly, in accordance with Section 25 of the law of 21 March 1991 concerning the reform of certain economic public companies (hereinafter referred to as “the law of 21 March, 1991”) which makes reference to Sections 143 and 144 of the Companies Code, the Board of Auditors hereby submits its report to you under our mandate as statutory auditor of the company. This report includes our opinion on the balance sheet as at 31 December 2018, the income statement for the year ended 31 December 2018 and the disclosures (all elements together the “Annual Accounts”) and includes as well our report on other legal and regulatory requirements. These reports are considered as one and are inseparable. The members of the Institute of Auditors have been appointed by the ministerial decree of 28 March 2017, in accordance with the proposition by the Board of Directors following recommendation of the joint committee. By ministerial decree, this mandate expires with the deliberation of the Annual Accounts for the year ending 31 December 2019. They performed the statutory audit of the Annual Accounts of the Company during two years.

Per Section 25 §3 of the law of 21 March 1991, two members of the Joint Auditors have been appointed by the shareholders’ meeting of the Court of Audit of respectively 2 September 2015 and 5 April 2017.

REPORT ON THE AUDIT OF THE ANNUAL ACCOUNTS

UNQUALIFIED OPINIONWe have audited the Annual Accounts of skeyes (the “autonomous public company” – former Belgocontrol), that comprise of the balance sheet on december 31, 2018, as well as the income statement of the year and the disclosures, which show a balance sheet total of € 309.375.082,60 and of which the income statement shows a profit for the year of € 16.714.124,57.

in our opinion, the Annual Accounts give a true and fair view of the autonomous public company’s net equity and financial position as at 31 december 2018, and of its results for the year then ended, prepared in accordance with the financial reporting framework applicable in Belgium.

BASIS FOR THE UNQUALIFIED OPINIONWe conducted our audit in accordance with international Standards on Auditing (“iSAs”). Our responsibilities under those standards are further described in the “Our

responsibilities for the audit of the Annual Accounts” section of our report.

We have complied with all ethical requirements that are relevant to our audit of the Annual Accounts in Belgium, including those with respect to independence.

We have obtained from the Board of directors and the officials of the autonomous public company the explanations and information necessary for the performance our audit and we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

RESPONSIBILITIES OF THE BOARD OF DIRECTORS FOR THE PREPARATION OF THE ANNUAL ACCOUNTSThe Board of directors is responsible for the preparation of the Annual Accounts that give a true and fair view in

Report of the Board of Auditors of the autonomous public company skeyes (former Belgocontrol) for the year ended 31 December, 2018

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accordance with the financial reporting framework applicable in Belgium and for such internal controls relevant to the preparation of the Annual Accounts that are free from material misstatement, whether due to fraud or error.

As part of the preparation of the Annual Accounts, the Board of directors is responsible for assessing the autonomous public company’s ability to continue as a going concern, and provide, if applicable, information on matters impacting going concern. The Board of directors should prepare the financial statements using the going concern basis of accounting, unless the Board of directors either intends to liquidate the autonomous public company or to cease business operations, or has no realistic alternative but to do so.

OUR RESPONSIBILITIES FOR THE AUDIT OF THE ANNUAL ACCOUNTSOur objectives are to obtain reasonable assurance whether the Annual Accounts are free from material misstatement, whether due to fraud or error, and to express an opinion on these Annual Accounts based on our audit. Reasonable assurance is a high level of assurance, but not a guarantee that an audit conducted in accordance with the iSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Annual Accounts.

As part of an audit in accordance with iSAs, we exercise professional judgment and we maintain professional skepticism throughout the audit. We also perform the following tasks:

> identification and assessment of the risks of material misstatement of the Annual Accounts, whether due to fraud or error, the planning and execution of audit procedures to respond to these risks and obtain audit evidence which is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting material misstatements resulting from fraud is higher than when such misstatements result from errors, since fraud may involve collusion, forgery, intentional

omissions, misrepresentations, or the override of internal control;

> Obtaining insight in the system of internal controls that are relevant for the audit and with the objective to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the autonomous public company’s internal control;

> Evaluating the selected and applied accounting policies, and evaluating the reasonability of the accounting estimates and related disclosures made by the Board of directors as well as the underlying information given by the Board of directors;

> conclude on the appropriateness of the Board of director’s use of the going-concern basis of accounting, and based on the audit evidence obtained, whether or not a material uncertainty exists related to events or conditions that may cast significant doubt on the autonomous public 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 disclosures in the Annual Accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on audit evidence obtained up to the date of the auditor’s report. However, future events or conditions may cause the autonomous public company to cease to continue as a going-concern;

> Evaluating the overall presentation, structure and content of the Annual Accounts, and evaluating whether the Annual Accounts reflect a true and fair view of the underlying transactions and events.

We communicate with the Audit committee and the Board of directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

RESPONSIBILITIES OF THE BOARD OF DIRECTORS The Board of directors is responsible for the preparation and the content of the management report,

the compliance with the legal and regulatory requirements regarding bookkeeping, as well as compliance with the law of 21 March 1991, the management contract of

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the autonomous public company and with the company’s articles of association.

RESPONSIBILITIES OF THE JOINT AUDITOR in the context of our mandate and in accordance with the additional standard to the iSA’s applicable in Belgium, it is our responsibility to verify, in all material respects, the management report, as well as compliance with certain requirements of the law of 21 March 1991, the management contract of the autonomous public company and the articles of association, as well as to report these matters.

ASPECTS RELATING TO MANAGEMENT’S REPORTin our opinion, after carrying out specific procedures on the management report, the management report is consistent with the Annual Accounts and has been in prepared accordance with article 95 and 96 of the Belgian companies code.

in the context of our audit of the Annual Accounts, we are also responsible to consider whether, based on the information that we became aware of during the performance of our audit, the management’s report contains any material inconsistencies or contains information that is inaccurate or otherwise misleading. in light of the work performed, we do not need to report any material inconsistencies. in addition, we do not provide reasonable assurance regarding the management report.

ASPECTS RELATING TO THE SOCIAL BALANCE SHEETThe social balance sheet, to be published in accordance with article 100 , § 1, 6°/2 of the Belgian Companies Code, includes both in form and in substance the required information as prescribed by the Belgian companies and does not contain any material inconsistencies compared to the information we have in our audit files.

INDEPENDENCE MATTERSWe have not performed any services that are not compatible with the statutory audit of the Annual Accounts and have remained independent of the autonomous public company during the course of our mandate.

The fees related to additional services which are compatible with the audit of the Annual Accounts as referred to in article 134 of the Belgian company code were duly itemized and valued in the notes to the Annual Accounts.

OTHER COMMUNICATIONS > Without prejudice to certain formal aspects of minor

importance, the accounting records were maintained in accordance with the legal and regulatory requirements applicable in Belgium taking into account the specific applicable legislation, sometimes deviating from the Belgian company code, specifically referring to the law of 31 July 2017 with respect to the change of Section 176 of the law of 21 March 1991 which states that no provision should be created for risks and charges related to disponibility and leave preceding the legal pension of the employees of skeyes (former Belgocontrol).

> The appropriation of the results proposed to the general meeting complies with the relevant requirements of the law and the company’s articles of association.

> There are no transactions undertaken or decisions taken in breach of the law of 21 March 1991, the articles of association or of the management contract of the autonomous public company that we have to report to you.

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Brussels, April 30, 2019The Board of Auditors,The members of the Institute of Company Auditors

Ernst & young Bedrijfsrevisoren cvBAStatutory auditorRepresented by

Marleen MannekensPartner*chair of the Board of Auditors*Acting on behalf of a BVBA/SPRL

Jean-Michel HaegemanStatutory auditor

Jean-Michel HaegemanPartner

The Court of Audit represented by Philippe RolandFirst chairman of the court of Audit

Hilde Françoischairman of the court of Audit

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BALANCE SHEET AFTER APPROPRIATION

ASSETS Codes 31/12/2018 in € 31/12/2017 in €Formation expenses 20FIXED ASSETS 21/28 112,852,560,94 102,465,443.96Intangible fixed assets 21 473,273.75 247,531.37Tangible fixed assets 22/27 112,145,306.55 102,184,640.17

Land and buildings 22 61,562,110.13 64,239,639.13Plant. machinery and equipment 23 33,544,367.64 23,380,022.11Furniture and vehicles 24 2,383,660.96 2,167,038.04Leasing and other similar rights 25Other tangible fixed assets 26Assets under construction and advance payments 27 14,655,167.82 12,397,940.89

Financial fixed assets 28 233,980.64 33,272.42Affiliated enterprises 280/1 200,000.00Participating interests 280 200,000.00Amounts receivable 281Enterprises linked by participating interests 282/3Participating interests 282Amounts receivable 283Other financial assets 284/8 33,980.64 33,272.42Shares 284Amounts receivable and cash guarantees 285/8 33,980.64 33,272.42

CURRENT ASSETS 29/58 196,522,521.66 170,068,363.42Amounts receivable after one year 29

Trade debtors 290Other amounts receivable 291

Stocks and contracts in progress 3Stocks 30/36Raw materials and consumables 30/31Work in progress 32Finished goods 33goods purchased for resale 34immovable property intended for sale 35Advance payments 36contracts in progress 37

Amounts receivable within one year 40/41 53,597,856.11 37,950,690.09Trade debtors 40 26,093,854.37 11,846,087.97 Other amounts receivable 41 27,504,001.74 26,104,602.12

Current investments 50/53 75,003,298.80 75,000,273.96Portfolio for investment 50Other investments and deposits 51/53 75,003,298.80 75,000,273.96

Cash at bank and in hand 54/58 43,034,171.95 38,706,039.86Deferred charges and accrued income 490/1 24,887,194.80 18,411,359.51

TOTAL ASSETS 20/58 309,375,082.60 272,533,807.38

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ANNUAL AccOUNTS 2018

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EQUITY AND LIABILITIES Codes 31/12/2018 in € 31/12/2017 in €EQUITY 10/15 229,238,531.10 212,524,406.53Capital 10 145,000,000.00 145,000,000.00

issued capital 100 145,000,000.00 145,000,000.00Uncalled capital 101

Share premium account 11Revaluation surpluses 12Reserves 13 82,169,331.10 51,722,838.36

Legal reserve 130 14,500,000.00 2,935,099.57Reserves not available for distribution 131in respect of own shares held 1310Other 1311Reserves 132Reserves available for distribution 133 67,669,331.10 48,787,738.79

Accumulated profits (losses) (+)/(-) 14 13,732,368.17Investment grants 15 2,069,200.00 2,069,200.00Advance to associates on the sharing out of net assets 19PROVISIONS AND DEFERRED TAXES 16 18,000,482.28 17,004,528.63Provisions for liabilities and charges 160/5 18,000,482.28 17,004,528.63

Pensions and similar obligations 160 2,205,003.19 2,460,400.00Taxation 161Major repairs and maintenance 162 11,952,500.00 10,983,000.00Environnemental obligations 164Other liabilities and charges 164/5 3,842,979.09 3,561,128.63

Deferred taxes 168LIABILITIES 17/49 62,136,069.22 43,004,872.22Amounts payable after one year 17 688,876.38 642,968.16

Financial debts 170/4Subordinated loans 170Unsubordinated loans 171Leasing and other similar obligations 172credit institutions 173Other loans 174Trade debts 175Suppliers 1750Bills of exchange payable 1751Advances received on contracts in progress 176Other amounts payable 178/9 688,876.38 642,968.16

Amounts payable within one year 42/48 53,332,890.83 36,298,478.35current portion of amounts payable after one year 42Financial debts 43credit institutions 430/8Other loans 439Trade debts 44 31,006,006.33 15,168,745.21Suppliers 440/4 31,006,006.33 15,168,745.21Bills of exchange payable 441Advances received on contracts in progress 46Taxes, remuneration and social security 45 22,326,884.50 21,129,733.14Taxes 450/3 994,869.17 1,103,255.11Remuneration and social security 454/9 21,332,015.33 20,026,478.03Other amounts payable 47/48

Accrued charges and deferred income 492/3 8,114,302.01 6,063,425.71

TOTAL LIABILITIES 10/49 309,375,082.60 272,533,807.38

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PROFIT AND LOSS ACCOUNT Codes 31/12/2018 in € 31/12/2017 in €Operating income 70/76A 242,402,609.92 236,520,655.69

Turnover 70 240,363,151.52 234,766,419.41 increase (decrease) in stocks of fabrication, finished goods, work in progress and in contracts in progress

(+)/(-) 71

Fixed assets - own construction 72Other operating income 74 2,017,448.28 1,452,979.90Extraordinary income 76A 22,010.12 301,256.38

Operating charges 60/66A 225,656,873.42 214,126,339.88Raw materials, consumables and goods for resale 60Purchases 600/8decrease (increase) in stocks (+)/(-) 609Services and other goods 61 78,843,402.01 74,073,612.70Remuneration, social security costs and pensions (+)/(-) 62 135,462,534.43 124,612,400.94depreciation and other amounts written offformation expenses and intangible and tangiblefixed assets

630 10,028,806.21 13,120,655.38

Amounts written off stocks, contracts in progressand trade debtors - increase (decrease) (+)/(-) 631/4 -471,383.53 362,728.22

Provisions for risks and charges - Appropriations (Utilization and write-back ) (+)/(-) 635/7 995,953.65 967,784.67

Other operating charges 640/8 792,746.68 735,687.37Operating charges capitalized as restructuringcosts (-) 649

Extraordinary charges 66A 4,813.97 253,470.60Operating profit (loss) (+)/(-) 9901 16,745,736.50 22,394,315.81Financial income 75/76B 46,308.37 141,434.71

Recurring financial income 75 46,308.37 141,434.71income from financial fixed assets 750income from current assets 751 246.58Other financial income 752/9 46,308.37 141,188.13Non-recurring financial income 76B

Financial charges 65/66B 77,920.30 38,228.33Recurring financial charges 65 77,920.30 38,228.33interest and other debt charges 650 1,145.70 14,607.59Amounts written off current assets other thanstocks, contracts in progress and trade debtors (+)/(-) 651

Other financial charges 652/9 76,774.60 23,620.74Non-recurring financial charges 66B

Profit (Loss) of the financial year before taxes (+)/(-) 9903 16,714,124.57 22,497,522.19Transfer from deferred taxes 780Transfer to deferred taxes 680Income taxes (+)/(-) 67/77

Taxes 670/3Adjustment of income taxes and write-back of tax provisions

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Profit (Loss) for the financial year (+)/(-) 9904 16,714,124.57 22,497,522.19Transfer from reserves 789Transfer to reserves 689Profit (Loss) for the year available for appropriation (+)/(-) 9905 16,714,124.57 22,497,522.19

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APPROPRIATION ACCOUNT Codes 31/12/2018 in € 31/12/2017 in €Profit (Loss) to be appropriated (+)/(-) 9906 30,446,492.74 13,732,368.17

Profit (Loss) for the year available for appropriation (+)/(-) (9905) 16,714,124.57 22,497,522.19Profit (Loss) brought forward (+)/(-) 14P 13,732,368.17 -8,765,154.02

Transfers from capital and reserves 791/2from capital and share premium account 791from reserves 792

Transfers to capital and reserves 691/2 30,446,492.74to capital and share premium account 691to the legal reserve 6920 11,564,900.43to other reserves 6921 18,881,592.31

Profit (Loss) to be carried forward (+)/(-) (14) 13,732,368.17

Shareholders’ contribution in respect of losses 794Profit to be distributed 694/6

dividends 694directors' or managers' entitlements 695Other beneficiaries 696

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A N N UA L R E P O R T 2 0 1 8

ASSETS

FORMATION EXPENSESThe formation expenses and initial costs of establishment are immediately booked during the financial year in which they were incurred.

The restructuring expenses are capitalized when they consist of clearly defined expenses that are linked to a drastic change in the structure or the organization of the company and when these expenses have a permanent and favourable impact on the profitability of the company.

These expenses are amortized in annual instalments of 20%.

INTANGIBLE FIXED ASSETSThe royalties for patents and licences are booked in this section and are subject to a linear amortization percentage of 20% a year.

Studies, on the other hand, are immediately booked under 'Services and other goods' (applied from the year 2000 onwards).

TANGIBLE ASSETSThe tangible assets are booked under the assets of the balance sheet at their purchase value, including the extra costs which, for major projects, comprise the non-recoverable taxes and transport charges, as well as the fees for architects and engineering firms (with regard to stability, special techniques, safety and control).

Amortization is calculated per month in a linear way, according to the percentages mentioned in the amortization table, while the month of coming into service corresponds to the first monthly amortization instalment.

The fixed assets are considered as operational either on the date of the report of the provisional acceptance (on that date, they can be removed from the section 'Tangible assets under construction' under which they were

registered, and booked to their specific account), or on the date of the delivery of the goods.

in exceptional circumstances, skeyes (formerly Belgocontrol) can provide for amortization on 'tangible assets under construction' when the putting into service takes place before the provisional acceptance; in such a case, the actual date of putting into service is taken into account.

in 2019, the cost bases and billing rates for the period 2020-2024 will have to be determined in accordance with European regulations. in this context, the categories of (in)tangible fixed assets were reviewed, further differentiated and refined. The depreciation rates were determined on the basis of the estimated economic lifetime of the investments in the various categories. For a number of important categories, the depreciation period will be longer. consequently, the depreciation cost based on a first rough estimate of the investment budget (2020-2024) will be lower than in the current method. The impact in the period 2020-2024 is estimated at - EUR 13.5 million, which will be postponed to later years.

FINANCIAL FIXED ASSETSAffiliated enterprisesThe financial fixed assets are booked on the assets side of the balance sheet at their purchase value.

At the end of each financial year, the valuation is revised in accordance with the situation, profitability or prospects of the company in which the participation is held.

Amounts written off are booked for the financial fixed assets for which a durable capital loss is determined or for which the repayment, as a whole or partly, is insecure or in danger.

Write-backs of the amounts written off is carried out to an amount of the said amounts written off if, later on, a durable capital gain is determined.

SUMMARy OF THE VALUATION RULES

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When the estimated value is higher than the value of the booked item, in principle, no changes are made to the accounting value.

AMOUNTS RECEIVABLE AFTER ONE YEARThe amounts receivable are booked at their nominal value or their purchase value.

A write-off is carried out when the realisation value on the closing date is lower than the accounting value - provided that this constitutes a durable capital loss - or when the refunding upon maturity, as a whole or partly, is insecure or in danger.

The valuation rules concerning currencies are applicable to this.

STOCKSThe purchased goods represent a relatively insignificant amount compared to the total of the section 'Operating charges'. They are allocated to the section 'Services and other goods' and consequently they are booked completely at the time of delivery.

AMOUNTS RECEIVABLE WITHIN ONE YEARThe amounts receivable are booked at their nominal value or their purchase value and are subject to the same valuation rules as the amounts receivable after one year.

CURRENT INVESTMENTS The investments on time-deposit accounts are booked at their purchase value; The investments in transferable securities are rated at the market value, which measures in a useful way the yield of the investment for the covered period on the date of the report; The instruments that have a fixed amount payable at maturity, and which are not marketable on the market, are valued as if they had a constant yield level until their due date.

DEFERRED CHARGES AND ACCRUED INCOMEThis section comprises:

costs to be carried forward, i.e. the pro rata of costs that were incurred during the financial year or the previous financial year, but which have to be booked to one or more subsequent financial years; Acquired profits, i.e. the pro rata of profits that are collected only in the course of a subsequent financial year, but which refer to the past financial year.

LIABILITIES

PROVISIONS FOR LIABILITIES AND CHARGESAt the end of every financial year, the Board of directors investigates with care, sincerity and in good faith, the provisions that have to be made in order to cover the provisions for liabilities and charges to be expected, i.e.:

charges inherent to major repairs and maintenance; Risks that resulted in the course of the financial year from clearly described future losses and charges; Losses or charges of a clearly defined nature, incurred during the financial year, but of which the amount is not yet determined; The obligations resulting from individual agreements concluded with members of staff, having a final character and that have materialised as agreements concluded within the framework of restructuring measures. The risk of losses because skeyes (formerly Belgocontrol) is committed to a performance plan that sets the tariffs for 'en-route’ activity for a certain reference period for the cost-efficiency part. Based on yearly updates of the traffic evolution prospects we calculate the losses that we will suffer due to the traffic risk for the remaining

years of the reference period and that are our responsibility. Les provisions constituées au cours d'exercices antérieurs sont revues et reprises en résultats si elles sont devenues sans objet.

The provisions built up during the previous financial years are to be reviewed and written-back if they are no longer wholly or partially necessary.

AMOUNTS PAYABLE AFTER ONE YEAR AND PAYABLE WITHIN ONE YEARThese amounts are recorded at their nominal par value.

The salaries and social security expenses are valued according to the current social and fiscal legislation and in line with the agreements concluded with the employees’ unions.

The valuation rules concerning currencies are applicable to this.

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ACCRUED CHARGES AND DEFERRED INCOMEThe section contains:

The imputable costs, i.e. the pro rata of charges that will only be paid in a future financial year, but which refer to the previous financial year;

The deferred income, i.e. the pro rata of income that has been collected in the course of the financial year or a previous year, but which refer wholly or partly to a future financial year.

VARIABLES

GENERAL PRINCIPLES APPLICABLE TO THE VALUATION OF THE ASSETS AND LIABILITIES THAT ARE EXPRESSED IN CURRENCYThe transactions in foreign currency are converted into Euro at the rate of exchange the day of the transaction.

At the end of the financial year, the assets (intangible, tangible or financial) as well as the other assets and liabilities for the part of the balance of those accounts expressed or originally in currencies, are converted to the rate of exchange applicable at the time of their entry.

Note: C 6.10. Operating results - Pensionsin application of article 85, paragraph 2 of the Rd of 30 January 2001, we have adapted the section "Staff costs – Retirement and Survivor's Pensions" in note C. 6.10 to the specific features of our company. This section contains the contribution of 35% paid to the State, in accordance with the current value of the acquired and future retirement pension rights of the active staff members.

Additional mentions to NOTE C. 6.10 and to the SOCIAL ACCOUNTING C.6. "Workers for whom the company introduced a DIMONA declaration or who were entered in the General Personnel Register" skeyes (formerly Belgocontrol) has introduced a diMONA declaration for its statutory workers who are not bound by an employment contract (which means that the Employment contracts Act is not applicable); they have been mentioned in the social balance sheet of permanent workers since the creation of skeyes (formerly Belgocontrol).

Note on the end-of-career costs of air traffic controllersin Belgium, just like in many other European countries, air traffic controllers are subject to a long-standing system whereby they acquire a non-active status a number of years before their pension. As part of this system, they receive a significant part of their salary without any performances in return. They remain however at the disposal of Belgocontrol. The cost of this system is borne by the company, which adds it to the cost base it charges to its customers.

Since the creation of skeyes (formerly Belgocontrol) the costs of the air traffic controllers’ non-active status have been entered under personnel costs at the time of payment of this compensation (consistent financial reporting framework).

in accordance with European regulations applicable to the charging of air navigation services, these end-of-career costs are financed simultaneously by charging customers. in application of the ‘matching’ concept in accounting, there is a consistency between the costs (compensation paid to the air traffic controllers) and the revenues (charging the compensation back to the customers).

The law of 31 July 2017 amending Article 176 of the law of 21 March 1991 confirms that skeyes (formerly Belgocontrol) does not have to make provision for obligations in respect of risks and charges for the non-active status and pre-pension leave of its staff.

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skeyesMain operating office :Tervuursesteenweg 303B-1820 SteenokkerzeelTél. +32 2 206 21 11skeyes.be

Head office:Square de Meeûs 35B-1000 Bruxelles

Photography Jean-Michel Byl Branislav Milicgetty imagesiStockShutterstockThinkstock

Realisation The crewthecrewcommunication.com

PrintingSnel

Member of FABEC www.skeyes.be

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