INTEGRATED ANNUAL REPORT 2011 Mission To develop and manage world-class for the benefit of all stakeholders

Vision To be a world-leading business

Values PRIDE Passion – Living our values and pursuing our goals Results – Being customer and partner focused Integrity – Enabling trust and respect in all our actions Diversity – Promoting our African heritage in a global context Excellence – Continuously improving and innovating our business

Strategy To build an efficient and customer-focused business CONTENTS AIRPORTS COMPANY

Mission, Vision and Values 2 Airport Statistics 5 Company Profile 6 Airport Locations 7 Operating Structure 8 Group Structure 9 Board of Directors 10 Executive Committee 12 Chairman's Review 16 Managing Director’s Review 18 Strategic Positioning 20 Delivering on our Objectives 22 Business Review 24 Stakeholder Engagement 33 Our Environment 38 Integrated Risk Management 44 Corporate Governance and Compliance 47 Airport Operations 54 Human Resources 61 Corporate Social Investment 64

Financial Contents Statement of Responsibilities and Approval 67 Certificate by Company Secretary 67 Information Presented in Terms of S(55)2 of the PFMA 68 Report of the Board Audit Committee 70 Report of the Independent Auditors 71 Directors’ Report 72 Statement of Financial Position 75 Statement of Comprehensive Income 76 Statement of Cash Flows 77 Statement of Changes In Equity 78 Notes to the Financial Statements 79 Statistical Review 134 Administration 141

AIRPORTS COMPANY SOUTH AFRICA INTEGRATED ANNUAL REPORT 2011 3 4 AIRPORTS COMPANY SOUTH AFRICA INTEGRATED ANNUAL REPORT 2011 Airport Statistics

1. O.R. TAMBO INTERNATIONAL AIRPORT 6. Bloemfontein INTERNATIONAL AIRPORT Passenger throughput 18 664 728 Passenger throughput 417 642 Total air traffic movements 212 448 Total air traffic movements 18 846 Annual passenger handling capacity 28 000 000 Annual passenger handling capacity 600 000 Public parking bays 16 300 Public parking bays 370

2. Cape Town INTERNATIONAL AIRPORT 7. Passenger throughput 8 225 422 Passenger throughput 545 206 Total air traffic movements 93 628 Total air traffic movements 33 004 Annual passenger handling capacity 14 000 000 Annual passenger handling capacity 900 000 Public parking bays 6 080 Public parking bays 415

3. King Shaka INTERNATIONAL AIRPORT 8. Upington INTERNATIONAL AIRPORT Passenger throughput 4 886 552 Passenger throughput 48 498 Total air traffic movements 54 476 Total air traffic movements 7 176 Annual passenger handling capacity 7 500 000 Annual passenger handling capacity 100 000 Public parking bays 4 500 Public parking bays 100

4. Port Elizabeth INTERNATIONAL AIRPORT 9. Passenger throughput 1 416 922 Passenger throughput 132 830 Total air traffic movements 73 068 Total air traffic movements 12 456 Annual passenger handling capacity 2 000 000 Annual passenger handling capacity 200 000 Public parking bays 900 Public parking bays 90

5. 10. Pilanesberg INTERNATIONAL AIRPORT Passenger throughput 778 184 Passenger throughput 7 844 Total air traffic movements 38 628 Total air traffic movements 4 202 Annual passenger handling capacity 1 200 000 Annual passenger handling capacity 40 000 Public parking bays 550 Public parking bays 20

AIRPORTS COMPANY SOUTH AFRICA INTEGRATED ANNUAL REPORT 2011 5 Company Profile

Airports Company South Africa Limited (ACSA) was formed in 1993 Town and King Shaka International Airports, ACSA added Pilanesberg as a public company under the Companies Act of 1973, as amended, International Airport to its network in 1998 under a 30-year and the Airports Company Act of 1993, as amended. Although ACSA concession with the North West Province. As well as providing world- is majority owned by the South African Government, through the class, secure infrastructure for airlines to transport people and goods, Department of Transport, the Company is legally and financially ACSA extends its responsibilities to include the promotion of tourism, autonomous and operates under commercial law. the facilitation of economic growth and job creation, and protection of the environment. ACSA has just completed its most ambitious infrastructure capacity development and improvement programme ever, prepared and ACSA’s revenue is generated from aeronautical and non-aeronautical brilliantly delivered against the world’s and our country’s expectations sources. The former is derived from government-regulated charges, or for a successful 2010 FIFA World Cup. tariffs, paid by airlines and includes fees for aircraft landing, aircraft parking and a passenger service charge. Non-aeronautical income is An important component of this colossal task was to ensure that there derived from multiple sources that include retail sales, concession was a smooth and hassle-free transfer to new infrastructure, together fees, property leases, parking fees, hotel operations, advertising and with its immediate and effective operation. This, in world airport revenues from our involvement in international activities. terms, is undoubtedly the task that has most challenged airports around the world. A large international airport should be thought of as a living entity. Although it is a collection of inanimate objects such as runways, In a country that is troubled by chronic unemployment, ACSA is pleased hangars, terminal buildings, car parks, roads and a host of physical to be contributing to job creation in South Africa, achieved through structures to support the activities of an airport, in reality it is an infrastructure investment and the partnerships that we are developing organism that pulses with life, just like a city. with the private sector. As recognised by global consulting firm Mott- MacDonald, the investment by ACSA in infrastructure development An airport is not only for air travellers; O.R. Tambo International, for has been appropriate, leading to significant socio-economic benefits. instance, is host to about 20 000 people who go to work there every It is estimated that the three major international airports sustain day to provide the multiple services that tend to be taken for granted about 300 000 jobs (direct and indirect) and that planned future when visiting an airport. An airport is not just for flying: it is the heart developments, as a result of passenger and cargo growth, will result of a network of transport arteries for cars, trucks, buses taxis and in the creation of some 150 000 new jobs over the next 10 years, provided the envisaged infrastructure development plans are realised. trains. Travellers are often accompanied by ‘meeters and greeters’, adding to the community that goes to an airport to eat, to drink, to For the past nine years, service standards have been benchmarked browse in the shops, refresh and relax, and, of course, to fly! through the Airports Council International’s (ACI) Airport Service Quality Programme. There are currently 180 airports around the world Outside South Africa, ACSA will endeavour to identify and participate taking part in this programme, ranging from Atlanta (the largest) to in select airport management and operating concession opportunities Incheon and Kuala Lumpur (the most efficient). To date, ACSA airports as part of its overall growth strategy. In this regard, in February 2006, have won 20 achievement awards for passenger satisfaction. ACSA and a consortium comprising the Indian company GVK and South African listed company, Bidvest, won a concession to manage Formed to own and operate the nine principal South African airports, Mumbai International Airport (MIAL). ACSA considers MIAL an exciting including the three main international gateways of O.R. Tambo, Cape and valuable investment.

6 AIRPORTS COMPANY SOUTH AFRICA INTEGRATED ANNUAL REPORT 2011 airport locations

ZIMBABWE

BOTSWANA MOZAMBIQUE

NAMIBIA Pilanesberg International Airport O.R Tambo International Airport

Upington International Airport Bloemfontein International Airport Kimberley Airport

King Shaka SOUTH AFRICA International Airport

Atlantic Ocean

East London Airport

Indian Ocean Cape Town Port Elizabeth International Airport George International Airport Airport

International airport

National airport AFGHANISTAN CHINA ACSA managed airport NEPAL PAKISTAN

INDIA

Mumbai International Airport

AIRPORTS COMPANY SOUTH AFRICA INTEGRATED ANNUAL REPORT 2011 7 OPERATING STRUCTURE

BOARD OF DIRECTORS Company Secretary Group Executive: Governance and Assurance

MANAGING DIRECTOR Executive Director: Finance Group Executive: Aviation Services Group Executive: Communications and Brand Management Group Executive: Commercial Services Assistant Group Executive: Airport Planning Group Executive: Human Resources

Group Executive: Operations General Manager: O.R. Tambo International Airport General Manager: Cape Town International Airport General Manager: King Shaka International and National Airports

8 AIRPORTS COMPANY SOUTH AFRICA INTEGRATED ANNUAL REPORT 2011 Group structure

Airport Operations

O.R. Tambo International Airport Cape Town International Airport King Shaka International Airport Port Elizabeth International Airport East London Airport Bloemfontein International Airport George Airport Upington International Airport Kimberley Airport Pilanesberg International Airport

AVIATION SERVICES

COMMERCIAL SERVICES

SUPPORT FUNCTIONS

Finance and IT Human Resources Company Secretariat Communications and Brand Management Risk Management Internal Audit Strategy Legal

AIRPORTS COMPANY SOUTH AFRICA INTEGRATED ANNUAL REPORT 2011 9