Reporting 2013
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REPORTING 2013 VISION A commitment to service quality, remarkable efficiency and outstanding facilities makes MIA a top airport in its class and a dynamic link to the world. REPORT 42 CONTENTS SECTION 3 EMPLOYEES Our employees, our DNA . Training and Development . Reward and Recognition . 2014 Training Programmes 06 SECTION 1 INTRODUCTION Key Data . Revenue by Segment . EBIT by Segment . EBITDA . EBIT . Turnover . Chairman’s Message . CEO’s review . Corporate Governance . Board of Directors . Segments . Risk Management . Strategy . Looking into the Future 50 SECTION 4 MANAGEMENT REPORT Traffic results . Business Mix . Top 5 markets . Top 5 airlines . Top Legacy carriers . Top Low Cost Carriers . CAPEX . Traffic Development . New Routes . Operations . Outsourced Services . Other services 36 SECTION 2 MIA SHARES Our story so far . Ownership . Performance of shares . Investor Relations . Financial Calendar . Recommendations for distribution of profit 70 SECTION 5 RETAIL & PROPERTY Concessions . Rents . Airport Parking Ltd . La Valette Club 74 SECTION 6 SKYPARKS BUSINESS CENTRE Facilities and Services . Office tenants 92 COMMITMENT TO THE COMMUNITY 82 SECTION 7 80 KEY EVENTS Children’s drawing competition . New Routes . OUTLOOK 2014 Transavia’s first passengers from Orly . MIA ranking . Joseph Calleja in Paris . Euro Annie Award . Award for Excellence . Three new airlines . 21st Annual General Meeting . ACI Role of Excellence . Incentive Schemes . European Business Awards . Investment in Weather Radar . New Trolleys . New Chairman . Departures lounge open to non-travellers . Four Millionth Passenger milestone 94 SECTION 8 FINANCIALS General Information . Director’s Report . Statement of Directors’ Responsibilities . Corporate Governance – Statement of Compliance . Statements of Comprehensive income . Statements of Financial Position . Statements of Changes in Equity . Statements of Cash Flows . Notes to the Financial Statements . Independent Auditor’s Report SECTION 1 The Malta International Airport is a public company incorporated and domiciled in Malta, whose shares are publicly listed and traded on the Malta Stock Exchange. The principal activities of the airport INTRODUCTION are the development and, operation and management of Malta’s Airport. Airport Retail & Property Other A summary and three year comparison of key indicators that help gauge REVENUE BY KEY DATA our performance, from a financial, industry and stock market position. SEGMENT FINANCIAL CHANGE FINANCIAL CHANGE FINANCIAL 1% 70% THE GROUP YEAR 2013 IN % YEAR 2012 IN % YEAR 2011 FINANCIAL INDICATORS (IN € MILLION) Total turnover 58.79 11.3 52.81 0.7 52.43 29% Thereof Aviation 41.30 7.9 38.29 (2.2) 39.17 Thereof Non-Aviation 17.49 20.5 14.52 9.5 13.26 EBIT 24.31 17.4 20.71 4.5 19.82 EBIT margin in % 41.35 5.4 39.22 3.8 37.80 EBITDA 29.89 15.9 25.80 4.1 24.79 EBITDA margin in % 50.84 4.1 48.85 3.3 47.28 ROCE in % 14.13 19.2 11.85 3.9 11.41 Net Profit 14.59 17.1 12.46 4.6 11.91 Cash flow from operating activities 29.06 75.5 16.56 (17.7) 20.12 Equity 66.98 7.4 62.35 5.1 59.33 Balance sheet total 162.11 5.1 154.24 5.5 146.20 Capital expenditure 6.18 (46.9) 11.64 22.7 9.49 Taxes on income 8.09 15.6 7.00 (0.1) 7.01 Average employees for the year 316 (3.7) 328 (4.7) 344 INDUSTRY INDICATORS MTOW in million tonnes 2.57 8.9 2.36 1.7 2.32 Passengers in million 4.03 10.4 3.65 4.0 3.51 Thereof transfer passengers 11,866 89.4 6,264 59.3 3,931 Flight movements 30,759 9.1 28,200 0.6 28,022 Cargo in tonnes 14,668 (2.9) 15,105 1.5 14,883 Seat occupancy in % 78.50 0.3 78.30 3.0 76.00 STOCK MARKET INDICATORS Shares outstanding in million 135.30 - 135.30 - 135.30 P/E ratio 20.00 2.2 19.57 1.9 19.20 Earnings per share in € 0.108 17.4 0.092 4.5 0.088 Net Dividend per share in € * 0.075 7.1 0.070 0.0 0.070 Net Dividend yield in % 3.472 (10.7) 3.889 (6.1) 4.142 Pay-out ratio as a % of net profit 69.56 (8.5) 76.01 (4.4) 79.53 Market capitalisation in € million 292.25 20.0 243.54 6.5 228.66 58.8% 1.7% 39.6% Stock price: high in € 2.16 20.0 1.80 (2.7) 1.85 Stock price: low in € 1.75 6.1 1.65 10.0 1.50 Stock price in € 2.16 20.0 1.80 6.5 1.69 Retail & Property Market weighting in % 8.64 3.0 8.39 - 8.39 EBIT BY Airport Other SEGMENT * Reporting year: recommendation to the Annual General Meeting REPORTING 2013 Malta International Airport plc 11 EBITDA AND EBIT EBITDA EBIT IN € MILLION 2011 2012 2013 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 24.79 19.82 25.80 20.71 29.89 24.31 TURNOVER Aviation Non-Aviation IN € MILLION 2011 2012 2013 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 39.17 13.26 38.29 14.52 41.30 17.49 REPORTING 2013 Malta International Airport plc 13 CHAIRMAN’S 2013 has been a momentous year for Malta International Airport. Every month translated into record passenger MESSAGE movements. Strong growth potential in the shoulder and winter seasons yielded the largest increase in absolute passenger numbers and the best improvement in percentage terms. In 2013, Malta International Airport potential of three key areas – developing yet again featured in Airport Council capacity towards our island, attracting International’s Top Five in the Best traffic in shoulder and winter months, and Airport by Region category. Our exploring opportunities in the ‘cruise and consistently positive ranking is just reward fly’ business. for the energy we put into providing our customers with the best possible From the extension of the baggage- experiences. We operate in an increasingly handling facilities in the Check-in area, demanding and competitive industry and to works on the taxiways to ensure more these results strengthen our resolve to efficient use is made of the runway, Our consistently reach even higher standards. our firm commitment to customers is to keep on investing in initiatives that Our primary focus remains our core will result in increased capacity and positive ranking business. However we continue to efficiency across various activities, invest in other segments, mainly particularly in peak operational periods. retail and property. We have striven to The terminal expansion, specifically in is just reward for polish our high quality proposition and the Non-Schengen area, aims to reduce worked tirelessly to exceed customers’ congestion and improve passenger flows expectations. New outlets have opened in the Schengen Area. Improved security the energy we put in the Food Court and existing ones measures in line with EU directives have been refurbished. Investment was will be introduced to ensure improved directed to increasing parking space security measures with minimal effect to into providing our to accommodate the ever-growing passengers. community at Malta International Airport. SkyParks Business Centre ended its first As we look to 2014 to build on the customers with full year of operation with office space outstanding results of 2013, I would like contracted at 95 per cent by year’s end. to first of all thank Michael Hoeferer, who was chairman of Malta International the best possible We anticipate passenger traffic to exceed Airport until November, as well as thank the four million mark by a small margin. the entire team at Malta International experiences. In 2014 we will focus on developing the Airport for serving our customers with REPORTING 2013 Malta International Airport plc 15 MESSAĠĠ Is-sena 2013 kienet sena importanti għall-Ajruport Internazzjonali ta’ Malta. Kull xahar ġab miegħu movimenti TAĊ-CHAIRMAN rekord tal-passiġġieri. Potenzjal ta’ tkabbir qawwi fl-istaġun tax-xitwa u f’dak mhux l-aktar intensiv wassal għall-akbar commitment, dedication and drive. żieda fin-numru assolut tal-passiġġieri u l-aħjar titjib Our team’s qualities will ensure our offering’s standards will climb f’termini ta’ persentaġġ. consistently higher. All of us are mindful of Malta International Airport’s responsibility to the Maltese economy, particularly to the tourism industry. We pledge to enhance our collaboration with key stakeholders and ensure ongoing investment to Fl-2013, l-Ajruport Internazzjonali b’marġni żgħir. Fl-2014 aħna se niffokaw provide our customers with treasured ta’ Malta għal darb’oħra deher mal- fuq l-iżvilupp tal-potenzjal ta’ tliet oqsma memories of Malta. It is, after all, Aqwa Ħamsa fil-kategorija tal-Aħjar ewlenin – L-iżvilupp ta’ seats disponibbli Malta International Airport which Ajurport skont ir-Reġjun tal-Kunsill lejn gżiritna, l-attrazzjoni ta’ traffiku gives most travellers their first Internazzjonali tal-Ajruporti. Il- fix-xhur tax-xitwa u dawk mhux intensivi, and last impression of the islands. klassifikazzjoni konsistentement u l-esplorazzjoni ta’ opportunitajiet pożittiva tagħna hija biss premju għall- fin-negozju tal-“cruise and fly”. enerġija li nagħtu biex noffru lill-klijenti tagħna l-aħjar esperjenzi possibbli. Aħna Mill-estensjoni tal-faċilitajiet noperaw f’industrija dejjem aktar eżiġenti tat-tqandil tal-bagalji fiż-żona taċ- u kompetittiva u dawn ir-riżultati jsaħħu Check-in, saru xogħlijiet fuq it-taxiways r-rieda tagħna biex nilħqu standards biex jiġi żgurat użu aktar effiċjenti saħansitra ogħla. tar-runway. L-impenn sod tagħna mal-klijenti huwa li nibqgħu ninvestu Il-punt fokali tagħna jibqa’ jkun in-negozju f’inizjattivi li se jirriżultaw f’aktar spazju ewlieni tagħna.