Annual and Sustainability Report 2019
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Annual and Sustainability Report 2019 Operations The year in brief 4 This is Swedavia 5 Statement of the Chairman of the Board 6 Statement of the President and CEO 8 The aviation market 10 Sustainable future aviation 13 How Swedavia creates value 16 Materiality analysis 20 Swedavia’s targets 24 Swedavia’s strategies 26 Operations 28 Airport Operations 32 Real Estate 44 Sustainability Sustainable development 48 Sustainable economy 50 Sustainable social development 52 Sustainable environmental concern 56 Financial information Report of the Directors 61 Consolidated financial statements 84 Parent Company financial statements 89 Notes 93 Signatories to the Annual Report 126 Auditor’s Report 127 Other GRI Index 130 Key metrics 134 Statement of Compliance 136 Definitions 137 Green bonds 138 This is Swedavia’s Annual and Sustainability Report for the financial year 2019. The report is aimed primarily at its owner, customers, credit analysts and partners, but also at other stakeholders, and is focused on the company’s strategy, objectives, tar- gets and results for the past year. The report concerns the entire Group unless other- wise indicated. Swedavia prepares its Sustainability Report in accordance with Global Reporting Initiative (GRI) Standards. Reported indicators have been chosen based on Swedavia’s and its stakeholders’ shared view of material issues and what is important for long-term sustainable operations. For sustainability-related information, see the GRI Index on pages 130–132. The statutory sustainability report in accordance with Sweden’s Annual Accounts Act is found on pages 65–71. The report also constitutes Swedavia’s report (Communication on Progress, COP) for the UN Global Compact. The airports of the future This is a translation of the Swedish original. In the event of any discrepancy between the two versions, the Swedish version takes precedence. Swedavia operates and develops the airports of Read more at: www.swedavia.se the future. The access they create enables Contact person: meetings between people and cultures. It makes Emma Behrendtz, communication strategist Sweden competitive, which provides the basis for Tel. +46 10 109 00 00 • [email protected] long-term sustainable growth. Swedavia’s overall targets 85% satisfied passengers, 2025 6% return on operating capital, annually 75% engage leaders and employees, 2025 0 tonnes of emissions of fossil carbon dioxide from own operations, 2020 5% share of sustainable aviation fuel, 2025 THE YEAR IN BRIEF The year in brief Performance in 2019 The Group in numbers For the full year, Swedavia’s airports The Group had 40.2 million (42.0) passengers, SEK M, unless otherwise indicated 2019 2018 2017 2016 which is a decrease of four per cent Net revenue 6,235 5,922 5,745 5,546 Net revenue increased to SEK 6,235 Operating profit 709 682 651 966 M (5,922) Operating margin, %1 11.4 11.5 11.3 17.4 The operating cost per departing pas- Profit for the year 583 517 407 717 senger increased to SEK 212.6 (200.7) Return on operating capital, %2 4.6 4.6 5.1 8.5 due to the lower number of passengers Debt/equity ratio, times2 1.1 1.1 1.0 0.7 Operating profit was SEK 709 M (682). It was negatively affected by Investments 3,460 3,195 3,866 2,138 SEK 82 M (84) attributable to impair- Dividend —3 — 122 143 ment losses and disposals as well as Average number of employees 3,050 3,217 3,074 2,949 restructuring costs of SEK 81 M (—). Number of passengers, million 40.2 42.0 41.9 39.5 Operating profit in 2019 was positively Operating costs per departing passenger, SEK4 212.6 200.7 192.9 194.5 affected by capital gains of SEK 130 Commercial revenue per departing passenger, M (55). Excluding these items affecting SEK 81.0 75.2 75.7 75.5 comparability, operating profit was SEK 742 M (711) Satisfied passengers, % 76 74 75 77 Engaged leaders and employees, %5 — 65 67 64 The Group’s investments totalled SEK 3,460 M (3,195). Significant Fossil carbon dioxide emissions, tonnes 316 1,305 1,896 2,723 investments were made in the airports’ For key metrics and definitions, see pages 134–135 and 137. development programmes and in run- 1 Operating margin excluding extraordinary items was 11.9 per cent in 2019, 12.0 per cent in 2018, way maintenance 14.1 per cent in 2017 and 13.1 per cent in 2016. 2 The Board of Directors proposes As of 2017, the company’s pension provision and receivable for the related employee pension tax are offset. Comparative years have been restated. that Swedavia AB brings forward the 3 Dividend proposed to the Annual General Meeting. OPERATIONS retained earnings for 2019 4 This key metric is calculated based on the Airport Operations business segment. As of January 1, 2019, the subsidiaries Swedavia Airport Telecom AB and Swedavia Energi AB are included in the Airport Operations business segment. Comparative years have been restated. 5 As of 2019, this key metric is calculated every two years. SEK 3,460 40.2 million M in investments SEK passengers 6,235 M in net revenue Sustainable aviation fuel 4 SWEDAVIA I ANNUAL AND SUSTAINABILITY REPORT 2019 THIS IS SWEDAVIA Swedavia develops the airports of the future and creates sustainable growth for Sweden Swedavia’s mission is to operate and develop the ten airports in Sweden’s national basic infra structure Kiruna Airport and to contribute to good access for Sweden and for the country’s different regions. Luleå Airport Purpose international role model in sustain- Together we enable people to meet. ability and a growth engine for all of Umeå Airport Sweden. Vision Swedavia develops the airports of Sustainable future aviation Åre Östersund the future and creates sustainable Swedavia is a world leader in devel- Airport growth for Sweden. oping airports with the least possible climate impact. In 2020, Swedavia’s Business concept objective is to have zero emissions of Together with its partners, Swedavia fossil carbon dioxide. Swedavia also creates added value for its custom- contributes to fossil-free air trans- Stockholm ers by offering attractive airports port by being a driver in the large- Arlanda Airport and access that provide smooth scale switch to sustainable aviation and inspiring travel experiences. fuel. The goal is to achieve fossil-free Bromma Stockholm Airport Swedavia’s airports shall be the most Swedish air transport by 2045. important meeting places in Scandi- navia, while the company shall be an Göteborg Landvetter Visby Airport Airport Ronneby Airport Malmö Airport SWEDAVIA I ANNUAL AND SUSTAINABILITY REPORT 2019 5 STATEMENT OF THE CHAIRMAN OF THE BOARD Without aviation Sweden – and the world – would come to a stop The access that aviation creates is an say this work for the company is a task essential requirement for Sweden’s that feels engaging and important. competitiveness, economic growth and Swedavia was formed in 2010. Up prosperity. Aviation links together our until the autumn of 2018, we had strong long, narrow country and links Sweden passenger growth, 4–5 per cent a year on to the rest of the world, which enables average. Although we see a declining experiences, meetings, trade and trend for the past two years, in our view commerce. air travel will increase in the long term. No other transport mode can connect In order to handle the capacity short- distant destinations with the same age arising from the passenger growth degree of convenience and speed. in previous years and based on future Together with ships, trains, lorries and needs, Swedavia needs to expand and buses, aviation creates a network of increase capacity at its airports, a pro- transport modes that all serve the same cess that is in full swing and which purpose – to create access so that people involves major investments. can meet and Swedish companies can do In 2019, we devoted a great deal of the business in a global marketplace. That is Board’s work to our master plans, in one reason why Swedavia is vital to which we plan for the long-term per- Sweden, but in order for us to continue spective. One such perspective concerns to make a contribution, aviation must be Bromma Stockholm Airport. The transformed. Board’s assessment is that planning Given the roadmap that the aviation must be based on the assumption that industry has adopted under the scope of Swedavia’s lease with the City of OPERATIONS the Swedish Government’s Fossil-Free Stockholm will not be extended after Sweden Initiative, there is a concrete – 2038. We must therefore focus on common – plan for this transformation. ensuring that Stockholm Arlanda Air- We are working intensely here and now, port will also be able to handle the and we are working with great focus Bromma traffic after that. This places “Our job is to within a much longer timeframe. It demands on increased runway and ter- should be possible for aviation to minal capacity, which, in turn, entails create access” develop and meet demand while at the lengthy permit processes that must be same time reducing its climate impact. initiated now. Meanwhile, we must By 2030, Swedish domestic air travel maintain our flexibility in order to shall be fossil-free. By 2045, all Swedish change and adapt these measures air travel, domestic and international, depending on the future trend. shall be fossil-free. It is worth noting that Swedavia’s development work is financed by the Swedavia’s Board of Directors is company’s own funds, generated from entrusted with the task of safeguarding airport charges, concessions and prop- Swedavia’s operations in the short and erty development, along with long term.