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Let's Travel with Care Copenhagen Airports Group Annual Report 2020 Let's travel with care Company reg. (CVR) no.: 14 70 72 04 Group Annual Report 2020 Pursuant to section 149(2) of the Danish Report on corporate responsibility Forward-looking statements Copenhagen Airports A/S Lufthavnsboulevarden 6 Financial Statements Act, the Group Annual The statutory reports on corporate respon- – risks and uncertainties 2770 Kastrup Report 2020 is an extract of the complete sibility, the under-represented gender and This Annual Report includes forward-looking Denmark Annual Report of Copenhagen Airports A/S. board diversity prepared in accordance with statements as described in the US Private The complete Annual Report, including sections 99a, 99b and 107d of the Danish Securities Litigation Reform Act of 1995 Tel. +45 3231 3231 the Annual Report of the Parent Company, Financial Statements Act are provided in the and similar acts of other jurisdictions on E-mail [email protected] Copenhagen Airports A/S (pages 118-131), sections on Business environment & model forward-looking statements, including in Web www.cph.dk and the statutory report on corporate and Risk management, risks & internal particular statements concerning future Company reg. (CVR) no. 14 70 72 04 governance, can be downloaded at controls of the Management’s review and revenues, operating profits, business Established 19 September 1990 www.cph.dk/en/about-cph/investor. in the Performance section. expansion and investments. Municipality of registered office Taarnby Following adoption at the Annual General Designations Meeting, the complete Annual Report will In these sections, Copenhagen Airports Such statements are subject to risks and Copenhagen Airports, CPH, the Group and the company also be available from the Danish Business A/S (CPH) explains how we worked with uncertainties, as various factors, many of are used synonymously to refer to Copenhagen Airports Authority. non-financial business targets in 2020 and which are beyond CPH's control, may cause A/S consolidated with its subsidiaries and associates. outlines the results achieved during the year. actual results to differ materially from the The allocation of the loss for the year is set For a more detailed, quantified description of guidance expressed in the Annual Report. Copenhagen Airport out on page 57. Corporate Responsibility (CR) results achieved Such factors include general economic and The airport at Kastrup, Copenhagen, owned in 2020, see the non-financial statements. business conditions, changes in exchange by Copenhagen Airports A/S. Annual General Meeting rates, the demand for CPH's services, com- Roskilde Airport As a result of the COVID-19 situation the The above-mentioned sections also repre sent petitive factors within the aviation industry, The airport at Roskilde owned by Annual General Meeting will be conducted CPH’s yearly Communication On Progress operational problems in one or more of Copenhagen Airports A/S. online with electronic voting on 26 April (COP) to the UN Global Compact, of which the Group's businesses, and uncertainties 2021, starting at 3:00 p.m. CPH has been a member since 2011. Thus, relating to acquisitions and divestments. Published by Copenhagen Airports A/S this report serves as a declaration of our con- See also management, risks & internal tinued support for the UN Global Compact controls on pages 43-44. Design and layout and its ten principles. Kontrapunkt Translation and proofreading Borella projects ISSN: 1904-25585 2 GROUP ANNUAL REPORT 2020 Contents Consolidated financial Management’s report Climate & non-financial statements Page 28 The big picture Safety & risk management Consolidated financial From Board & Management .................. 5 Safety ................................................... 42 review & statements The Annual Report in five minutes ........ 8 Risk management, risks & Financial performance ........................... 53 Business environment & model ............. 13 internal controls .................................... 43 Income statement ................................. 54 Business strategy ................................... 15 Statement of comprehensive income ..... 54 Outlook ................................................ 16 Balance sheet ....................................... 56 Governance, leadership & shares Statement of changes in equity ............. 58 Shareholder information ....................... 46 Cash flow statement ............................ 59 Performance Corporate governance .......................... 47 Notes to the financial statements .......... 61 Passengers ............................................ 18 Board of Directors & Aeronautical business ............................ 20 Executive Management ........................ 49 Non-aeronautical business ..................... 24 Consolidated non-financial Investments ........................................... 26 statements (unaudited) Corporate responsibility, Corporate responsibility ESG & KPI overview .............................. 98 Introduction .......................................... 27 Notes to the non-financial statements ... 99 Climate ................................................. 28 Local community & neighbourhood ...... 31 Environment & resources ...................... 32 Management statement Attractive workplace ............................. 35 Passengers & auditor's reports Working environment ........................... 37 Page 18 Management statement ....................... 110 Business ethics & human rights .............. 38 Independent auditor's report ............... 111 Aeronautical Independent auditor's limited assurance report ....................... 115 Taxation business Taxation ................................................ 40 Page 20 3 CONTENTS Passengers in 2020 7.5 million 30.3 million in 2019 The big picture FROM BOARD & MANAGEMENT planned investments were reduced by across Europe we have had to face up to the On the road approximately DKK 800 million. In August reality of the new situation. and November 2020, CPH also implemented organisational adjustments to the activity As a consequence of the very low activity level expected for the foresee able future. level at the airport, CPH and the unions to recovery These adjustments will reduce yearly opera- worked together on, among other things, tional costs for CPH by approximately DKK upskilling and division of labour. The joint Serious crises can bring out the best in people and companies. 500 million. effort and excellent collaboration meant That has been the case at Copenhagen Airports, where we that CPH was able to avoid cutting a further It has been vital for us to succeed in signifi- 300 jobs. Our union partners deserve huge have used the COVID-19 crisis to become a leaner, more cantly slimming down. As critical infrastruc- credit for this. agile company with adaptable employees and strengthened ture and Denmark’s gateway to the world, relations with the airlines, partners, authorities and other we could not simply shut down and wait for Overall, it is estimated that 10,000 jobs have stakeholders. We are well positioned for the road to recovery. better times. We had to stay open for the been lost in the Danish aviation sector – the very limited passenger traffic that remained, majority in the 1,000 or so companies in and and not least for important air cargo. This around Copenhagen Airport. In summer has meant that expenditure has far exceeded 2020, CPH therefore joined with the unions, revenue. SAS, the Danish Ministry of Employment and Tårnby Municipality to open a job and advice Collaboration to save jobs centre at Copenhagen Airport, to assist those For Copenhagen Airports, 2020 was the worst We are confident of a good future for CPH In spring 2020, when we reached a low point impacted by the crisis. year since the Second World War. Passenger and the aviation industry in which we will of just 424 passengers on 9 April, we remained numbers plummeted from 30.3 million to all fulfil the pre-COVID ambition of a green calm. Excellent collaboration with the author- 7.5 million – the same as in 1970. A pre-tax transition for the whole sector. That same ities and the government brought flexibility profit of around DKK 1.3 billion in 2019 confidence in CPH is shared by our lenders, to the salary compensation scheme, allowing turned into a loss of DKK 828 million in 2020. who have provided credit facilities of DKK 6 employees to be on rotation or furloughed. billion to help us through 2020 and given us This was crucial. But 2020 was also a year in which employ- the platform to restart in 2021. In addition, ees, management and owners, in partnership due to the credit facilities provided, all our Overall, CPH received DKK 348 million in with our stakeholders, stood together to lenders provided support in waiving debt compensation packages during the year of weather the storm so that in 2021 we are covenants until June 2021. We would like coronavirus. This gave us the breathing space 424 well-adapted, stronger and ready to restart to thank them all for their cooperation. to carry out the essential company adapta- and rebuild. tions and allowed us to protect the jobs of passengers on 9 April In 2020, CPH took significant actions to 2,600 employees until the end of August, During the year, a united CPH was geared up reduce costs and actively use the crisis to when we had to make the first lay-offs. At – the low point of 2020 to act quickly in an unpredictable reality of simplify and identify new, effective
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