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2017 Annual Report

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2017 Annual Report annual report 2017 Royal Schiphol Group Royal Schiphol Group Annual Report 2017 Value creation model Connecting the Netherlands Royal Schiphol Group’s mission is Connecting the Netherlands. We facilitate optimal links with the rest of the world in order to contribute to prosperity and well-being both in the Netherlands and elsewhere: connecting to compete and connecting to complete. Why What How Who Value m T U A I Mission Top Business Airlines Input Connectivity model r Travellers 1 E 2 O Q Ambition Excellent Aviation Local residents Output Visit Value S Sector partners C c q o Competitive Consumer Government Outcome Marketplace Products & Services F Financial stakeholders D R B Development Real Business of the Group Estate partners M Employees s a G Sustainable Alliances & Network and & Safe Partici pations special interest Performance organisations H Knowledge institutions Value creation model 1 Royal Schiphol Group Annual Report 2017 Value I Input U Business model We deploy valuable resources to enable our business model Who 3 Generated capital Why — High-quality facilities A Airlines and infrastructure m Mission — Attractive real estate Connecting the Netherlands: — Varied range of parking Facilitating optimal links with r Travellers products the rest of the world in order to contribute to prosperity and well-being in the Netherlands O Local residents 7 Natural capital and elsewhere. — Regional Alders — Energy Platforms — Raw materials — Schiphol Local — Water Community Council — Land holdings 1 Ambition — Schiphol Local To develop Amsterdam Airport Community Schiphol into Europe’s Preferred Contact Centre 5 Human capital Airport for travellers, airlines and — Trained and highly motivated logistics service providers alike. S Sector partners own employees — Airlines — Employees of business — Air Traffic Control and sector partners the Netherlands (LVNL) — Handling agents — Dutch Customs 4 Social and relational capital How — Royal Netherlands — Local support base Marechaussee — Good relationships with sector In order to achieve our mission partners, business partners effectively and efficiently, we have q Government bodies and suppliers clustered our core activities — Neighbouring around four business areas: municipalities — Provinces 6 Intellectual capital — Ministries — Knowledge and expertise 2 Aviation — Innovation Providing services and offering/ F Financial stakeholders — Strong brands and concepts managing infrastructure — Shareholders — Banks — Bond investors 8 Financial capital c Consumer Products — Solid financial position and Services B Business partners — High creditworthiness Creating products and services — Concessionaires for travellers — Lessees — Security companies — Facility service providers R Real Estate — Construction and Developing and managing real installation companies estate at and around the Schiphol airports M Employees a Alliances & Participations Operating the regional airports G Network and special and developing international interest organisations activities H Knowledge institutions 2 Value creation model Royal Schiphol Group Annual Report 2017 Q Output o Outcome Impact to focus on results that create value for our stakeholders and This means we have an impact the local community. on society: What We contribute to the gross T We facilitate Top Connectivity domestic product of the Netherlands by creating 326 destinations The best connections inclusive employment at and around our airports, as well 496,748 air transport movements The strength of Mainport Schiphol lies in its network of destinations. It is this intricate network that makes as indirect employment 68.5 million passengers Schiphol Europe’s best direct connected airport. thanks to the economic 1.75 million tonnes of cargo We strive to expand the network by adding destinations activity generated by those at Schiphol that support the Mainport. We have maximised the use airports. 42.9% accessibility of Schiphol of existing capacity in and around the terminal and we by public transport are creating new infrastructure. E We offer Excellent Visit Value We invest in a resilient infrastructure. We pursue Competitive airport charges: An attractive airport a proactive approach in our #9 in the SEO Benchmark We fulfil our ambition to make Schiphol Europe’s relationship with sector NPS score: 31 Preferred Airport by ensuring top quality in our partners with a view to Spend per passenger: EUR 18.03 processes, facilities and commercial offering. making the aviation industry Digitisation plays a prominent role in this regard. more sustainable. Outlets at Schiphol: 369 In all our decisions, we take account of the interests of our customers, airlines and travellers in particular, with a central focus on creating a pleasant and memorable experience. We contribute to a healthy and pleasant environment C We realise a Competitive Marketplace for residents and workers by promoting clean mobility and 89.6% real estate occupancy rate A prime location reducing emissions of fine 1.5 billion euros real estate We are developing Schiphol into a location which and ultra-fine particles, in stands for quality in work and accommodation, with 13.7% market share for cargo collaboration with our excellent accessibility and convenient parking options. partners. A key reason why international businesses establish themselves here is the proximity to the airport. We are continuously upgrading the working environment by offering flexible lease concepts and facilities. We contribute to circular D We strengthen the Development of the Group solutions through the efficient use of raw materials HPO score: on track for Level 4 A strong group and resources and actively collaborate to promote Internal job mobility: 21.7% We strengthen synergies within the group. We coordinate our large investment projects in an circular processes at the 30.5% women* integrated manner. We implement organisational airport. * 4.3% absenteeism improvements as we develop into a High Performance A+ rating (S&P) Organisation. We are actively committed to promoting Return on Equity: 7.2%* inclusive business practices. We are seeking to expand our international activities, particularly with airports We contribute to reducing of strategic relevance for the Mainport. We pursue the impact on climate change a solid and future-oriented financial policy. by using renewable energy and fuels. In addition, we are s We create Sustainable and Safe performance able to adapt our infrastruc- ture in response to changing LTIF: 0.9* Sustainability and safety as basic conditions weather conditions. 40.7% waste separated* Sustainability and safety are the basic conditions for everything we do. Our top priority is to ensure a healthy 4.61% energy efficiency and safe environment for Schiphol workers, travellers * Bird strikes: 5.6 and local residents. To us, sustainability means we Collaboration with partners Runway incursions: 53* maintain our focus on long-term developments and through channels such as seek to create lasting value. To that end, staying in the Airports Sustainability continuous dialogue with our stakeholders is crucial. Declaration strengthens our contribution to the SDGs. * Concerns Schiphol Group Value creation model 3 Royal Schiphol Group 2017 Annual Report Contents Our position Strategic Facts and figures in the value chain themes page 14 page 24 page 37 Management Network of agenda 2018 destinations page 43 page 48 Message from the CEO 6 Governance 111 Report of the Supervisory Board 112 Key events in 2017 10 Supervisory Board 126 About us 13 Management Board 128 Facts and figures 14 Corporate Governance 130 Our organisation 16 Remuneration 136 Our activities 18 Risk management 141 Our position in the value chain 24 Annual Statements Our strategy 27 Socio-economic accountability 153 Mission and ambition 28 Financial Statements 172 'Connecting the Netherlands': five themes 37 Our results 45 2017 Management Agenda 46 Our results 47 Financial performance 105 5 Royal Schiphol Group 2017 Annual Report Message from the CEO Schiphol connects the Netherlands to 326 destinations worldwide, making us Europe's 'best direct connected airport'. We are working hard to prepare for the future so that we can accommodate the increasing flow of passengers. At the beginning of April we opened a temporary departure hall, and in the autumn made room for the construction of a new pier and terminal. Perform today, Create tomorrow. Today's challenges go hand-in-hand with tomorrow's investments. Congestion is the new normal was completed in record time. However, things went badly wrong during the May holidays when 2017 was a year of excitement and of progress for we were unable to ensure that each passenger Royal Schiphol Group. It was our busiest year ever reached the gate on time. For three days, the with 68.5 million passengers at Schiphol. The picture at Schiphol was one of long queues, full record number signified an increase of nearly 8% baggage carousels and legitimate public compared with last year. On Monday, 31 July concerns. We were quick to address the 2017, we welcomed more than 234,400 problems. passengers, making it our busiest day ever. Whilst during previous summer holiday periods there I'm happy to say that this was yet another were only a few peak days with more than illustration of how we all pull together at such 200,000 passengers, in summer 2017 there were moments. I believe compliments are due first and only a few days when passenger numbers dipped foremost to our colleagues and our business below
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