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A Broader Perspective

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A Broader Perspective A BROADER PERSPECTIVE Adelaide Airport Integrated Review 2019 AT A EBITDA Growth GLANCE 5% $6.6m 5.2% $11.2m About this Report Revenue 1.06m Growth 5.8% Adelaide Airport Limited (AAL AAL is the main operating entity or the ‘Group’) presents its holding the lease rights and 2019 Annual Review using an management rights to Adelaide integrated approach. This report and Parafield airports. This Review International International communicates both Adelaide should be read in conjunction with and Parafield Airports’ overall the Annual Financial Statements, Passengers Passengers Growth performance for the financial year providing a more detailed ending 30 June 2019, and includes understanding of the financial our impacts and contributions aspects of the business. 1.33b +1.1% 8.5m 1.3% to society and the environment. Unless otherwise stated all This Review demonstrates how information in this report relates our strategy, governance and to the Group. Further information performance create value over the on the Financial Report 2018/2019 short, medium and long-term for can be accessed here. Total Freight Freight Value Total Total Passenger shareholders and other important stakeholders. Value Growth Passengers Growth 8875 4.2/5 73.3% 1% Volunteer Airport Service Employee Community OUR Hours Quality Score Engagement Investment REPORTING 48% 36.4% (up 2.7%) 4% Recycled Female Reduced Overall Our 2019 Annual Review is This report has also been To inform the preparation of this inspired by the principles of informed by the Global Reporting report, we have sought feedback Water Use Employees Electricity the international Integrated Initiative (GRI) Standards. Our GRI from our internal and external Consumption Reporting (<IR>) Framework. content index can be found in the stakeholders. This valuable Integrated Review 18-19 Review Integrated APPROACH 18-19 Review Integrated In our journey to full alignment Appendix and, as this report is feedback has helped us to with <IR>, we are expressing informed by the GRI Standards, determine the most relevant areas to all our stakeholders how we we have not included Disclosures to focus on in this report and are 0% 9% 29% 13% create value. We provide more on Management Approach (DMAs) described in the Material Issues detail on our value creation for each material issue. and Stakeholder Engagement outcomes in the ‘Our Strategic section. During 2018/19 there have been Performance’ section. no significant changes to AAL’s Your feedback on what information Lost Time Injury Reduction in Waste Diverted Renewable organisational or shareholder you would like to see in future Frequency Rate Carbon Emission from Landfill Energy structure. reports is important to us. Please contact us at (Scope 1+2) Generation % 2 [email protected] 3 48 48 13 July 15 August 6 September 6 September 11 September 2 October Adelaide Airport Construction starts The new Atura Singapore Airlines First retail Request New Kennards Self announces it has hit on the $165m terminal Hotel officially announces ADL as For Proposal Storage facility opens 1 million international expansion opens the official launch released for terminal in Airport Business passengers in FY18 destination of its expansion District new Airbus A350-900 medium haul aircraft 29 January 24 January 20 December 20 November 28 October 28 October Australian Clinical SA Ambulance Adelaide Airport Successful US private United Way Read China Southern Labs opens new Service opens new secures Australia’s placement bond Aloud Open Day commences up to pathology facilities Medstar base in first Sustainability market finances hosted by Parafield daily service during in Airport Business Tapleys Precinct Loan with ANZ terminal expansion Airport peak summer season District 12 February 19 February 7 March 15 March 18 March 31 March New Executive Platinum status Lagardere Travel One of the world’s SNP Security takes Adelaide Airport GM appointments secured for the Retail secures largest aircraft, an over passenger and overtakes Gold Coast announced second year running duty free and Antonov AN-124, baggage screening as Australia’s 5th from Airport Councils international F&B touches down in services contract largest international International concessions as Adelaide airport Asia-Pacific part of terminal forsustainability expansion initiatives 29 June 17 April 6 April Integrated Review 18-19 Review Integrated AFL Max facility Malindo Air Trial of new 3D 18-19 Review Integrated opens in Airport commences four- x-ray scanner, Business District weekly service to body scanner and Kuala Lumpur via Bali automated tray return system YEAR IN commences 4 REVIEW 5 48 48 Growing our business Building for the future … … While remembering our Past This financial year we have We have an excellent track record As part of the terminal expansion achieved a 5.0 per cent increase in delivering on our commitments project, we were delighted to in our EBITDA (excluding property to invest in new infrastructure, receive a funding commitment, in revaluations) result to $139.3m, while encouraging and facilitating addition to our own commitment, compared with $132.7m in 2017/18. investment by our key tenants. from the State and Federal Revenue has increased by 5.2 per governments to assist with the Leading our infrastructure cent to $225.5m. relocation of the historic Vickers investment is the expansion of Vimy aircraft from its current Far from hitting the auto-pilot our international and domestic location near the long-term car button, we are re-doubling our terminal, which will significantly park to a new home within the efforts and setting sustainable, upgrade international arrivals expanded terminal. long-term goals to grow our and departures, and create more business on the ground and in the retail and dining options for air. both domestic and international travellers. Adelaide has hosted the 2019 World Routes Conference in International upgrades will include Delivering an exceptional September 2019, which was an a second, longer baggage belt for experience excellent opportunity to showcase arrivals, more space for emigration our airport as well as South and immigration processing, Australia’s tourism and convention expanded security screening, a facilities. The development of larger duty-free precinct for arrivals new routes can take decades and departures, and expanded Such developments are about and this conference presented an dining and retail options. prioritising the customer opportunity to continue a number As is the nature of a project this experience to create a seamless of our ongoing conversations with size, we’ve undertaken significant and enjoyable journey from the airlines. planning and years of discussions minute you drive into the airport We remain under-served to a with our key partners, including until you’re ready for take-off. CHAIRMAN number of destinations, including airlines, retailers and regulatory In the most recent quarter the United States. We also agencies to reach this point. We Australian Service Quality rankings believe there are opportunities to also undertook customer surveys place Adelaide as the top airport attract direct links with new Asian and reviewed our customer in Australia, and in the top 25 per & MD’S destinations such as Japan, the feedback to understand the key cent of airports in the Asia Pacific. Philippines, Vietnam, Thailand and elements our travellers wanted to India – to name just a few - and see. Looking forward, we see the Adelaide Airport for a number of Our ability to plan and invest in In 2018/19 we have again been to continue to grow our Chinese ‘airport of tomorrow’ as featuring Just as construction started on years has carried the following new infrastructure at a time of slow recognised as the fastest growing market. new technologies and processes the terminal expansion project, we signREPORT along our main concourse: growth and constrained capacity international airport in Australia – a that make the customer However, the effort required completed and opened the new “When everything seems to be in the aviation sector has provided significant achievement in a highly experience faster, easier and more to attract growth continues to Atura Hotel, operated by Event going against you, remember a solid base on which to build our competitive market. We have intuitive. increase - global destination Hospitality & Entertainment Ltd. that the airplane takes off future sustainability. welcomed Malindo Air, operating competition and demand for new It is the first hotel in Australia to against the wind, not with it.” to Kuala Lumpur via Bali, and seen We have achieved extraordinary services has intensified but in an directly link with the main domestic incumbent airlines either adding It’s a message we take to heart international growth over the past environment where airlines are and international terminal of a more services or upgrading aircraft and helps us focus on our goals decade. It is just seven years restricting growth in seat capacity. capital city airport. to bigger, new-generation aircraft even in less favourable operating since we attracted Emirates to such as the Boeing 787 Dreamliner The 165-room, seven-storey hotel conditions. Adelaide, which at the time was and Airbus A350 to meet demand. Integrated Review 18-19 Review Integrated features the Hangar Bar & Grill, 18-19 Review Integrated considered a game-changer in In 2018/19 we have maintained a business centre, eight flexible demonstrating our ability to attract We now have more than 300 solid growth across all areas of our function and meeting spaces, plus major international carriers. This excellent one-stop connections business despite global economic a port-cochere for guest drop has proven to be true, with the across Asia, Europe, North headwinds. off and collection. The hotel will likes of Qatar Airways and China America and Africa via global hubs strengthen our ability to attract Southern adding Adelaide to their such as Singapore, Guangzhou, other on-airport investment network and opening up new Hong Kong, Dubai, Doha, because of the seamless opportunities in the Middle East Auckland and Kuala Lumpur.
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