Take off for a sustainable future Copenhagen Airports Group Annual Report 2018 Company reg. no. (CVR) 14 70 72 04 Group Annual Report 2018 Pursuant to section 149(2) of the Danish Corporate Forward-looking statements Copenhagen Airports A/S Lufthavnsboulevarden 6 Financial Statements Act, the Group Annual responsibility statement – risk and uncertainties 2770 Kastrup Report is an extract of Copenhagen Airports’ The statutory statements on corporate This Annual Report includes forward-looking Denmark complete Annual Report. The complete responsibility and the under-represented statements as described in the US Private Annual Report, including the financial gender in accordance with sections 99a Securities Litigation Reform Act of 1995 Tel. +45 3231 3231 statements of the Parent Company, Copen- and 99b of the Danish Financial Statements and similar acts of other jurisdictions on Fax +45 3231 3132 E-mail [email protected] hagen Airports A/S (page 160-173), and the Act are given in the management’s review forward-looking statements, including in Web www.cph.dk/en statutory corporate governance statement, ”Business model”, ”Risk management and particular statements concerning future Company reg. no. (CVR): 14 70 72 04 can be downloaded on http://www.cph. risks” and in the ”Performance” section. In revenues, operating profits, business Established: 19 September 1990 dk/en/about-cph/investor/corporate-gover- these sections, Copenhagen Airports A/S expansion and investments. Such statements Municipality of registered office: Tårnby nance. Following adoption at the Annual (CPH) explains how we worked with the are subject to risks and uncertainties, as Terms used General Meeting, the complete Annual non-financial business targets in 2018 and various factors, many of which are beyond Copenhagen Airports, CPH, the Group and Report will also be available from the Danish what results we achieved during the year. CPH’s control, may cause actual results and the Company are used synonymously to refer to Business Authority (Erhvervsstyrelsen). For a more detailed, quantified description performance to differ materially from the Copenhagen Airports A/S consolidated with of CR results achieved in 2018, see the forecasts made in this Annual Report. Such its subsidiaries and associates. The allocation of the profit for the year, non-financial statements on pages 119 -150. factors include general economic and busi- Copenhagen Airport including the proposed dividend, is descri- ness conditions, changes in exchange rates, The airport at Kastrup, Copenhagen, bed on page 80. the demand for CPH’s services, competitive owned by Copenhagen Airports A/S. factors within the aviation industry, operati- Annual general meeting onal problems in one or more of the Group’s Roskilde Airport The Annual General Meeting will be held businesses, and uncertainties relating to The airport at Roskilde owned by Copenhagen Airports A/S. on 10 April 2019 at 3 pm at the Vilhelm acquisitions and divestments. See also the Lauritzen Terminal. section ”Risks” on pages 64-68. Published by Copenhagen Airports A/S Design and layout Kontrapunkt Translation AdHoc Translations A/S ISSN: 1904-2558 2 Contents Management’s review Consolidated financial & non-financial statements The big picture Perspectives from Consolidated financial the Board of Directors........................... 5 performance & statements The Annual Report in 5 minutes ........... 6 Financial performance ........................... 76 Insights from Income statement ................................. 76 the Executive Management................... 11 Statement of comprehensive income .... 77 Outlook for 2019 .................................. 15 Balance sheet ....................................... 78 Statement of changes in equity ............. 80 Our business Cash flow statement ............................. 82 Investments in 2018 Business model ..................................... 17 Notes to the financial statements .......... 84 Business environment ........................... 19 Page 29 Business strategy .................................. 21 Consolidated non-financial CR focus areas ...................................... 22 statements (supplementary information – not audited) Passenger experience Performance Statement on Social Our performance .................................. 24 performance (People) . .......................... 120 Page 43 CR results ............................................ 35 Statement on Planet People .................................................. 36 performance. ........................................ 121 Planet ................................................... 47 Statement on Position ................................................ 57 Position performance ............................ 122 Taxation ................................................ 62 Notes to the non-financial statements .. 124 Risks Management’s statement Risk management & risks ...................... 65 & auditor’s reports Management’s Statement ..................... 152 CR results Cohesion Governance, Independent Auditor’s Report ............... 153 leadership & shares Limited assurance report Page 35 Page 59 Shareholder information ....................... 70 of the independent auditor ................... 157 Corporate governance ......................... 71 Board of Directors and Executive Management......................... 73 The Management’s review, as defined by the Danish Financial Statements Act, is included on pages 4-74. This Annual Report is published in both English and Danish. In the event of any discrepancies, the Danish version shall prevail. 3 MANAGEMENT’S REVIEW The big picture Perspectives from the Board of Directors 5 The Annual Report in 5 minutes 6 Insights from the Executive Management 11 Outlook for 2019 15 and land-based traffic to and from CPH. This for running a healthy business at Copen- Perspectives from must be realised in close collaboration with hagen Airport. The charges agreement our partners. This is an ambitious vision, also strengthens the collaboration with the the Board of Directors which will make us a pioneering global air- airlines on making operations at the airport port in creating real solutions to the climate as efficient as possible. impact from aviation. Everyone should have the opportunity to experience the joy of travel, The Board of Directors would like to to experience new cultures, exchange knowledge and goods and At the same time, we are strengthening acknowledge our positive collaboration with our collaboration with the aviation industry ministries, authorities and organisations on to grow as citizens of the world. This creates development for both on the development of global, sustainable the development of business cases for the the individual and society in general – and it generates progress solutions. This can involve everything from airlines, showing the commercial benefits of and wealth. But the growth must be sustainable. That is why we are bio-fuel and electro-fuels to the develop- placing new routes at Copenhagen Airport. ment of electricity-powered aircraft. We have seen significant growth on long- focusing on a new climate strategy. haul routes in 2018 – not least to China, We have recently concluded a 5 year charges with the opening of routes to Hong Kong, agreement regarding airport use, which is Chengdu and Beijing. an important foundation for developing As Denmark’s international airport, we With this in mind in 2018, we started CPH even further in collaboration with the 2018 was yet another busy year for Copen- are on an important journey. With more developing a new overall strategy for the airlines. The agreement creates a secure hagen Airport. On 27 December, we reached routes and better connectivity, we share the company. The effort to actively include basis for the airport and the companies that a milestone: 30 million travellers in one year, ambition of the national aviation strategy employees, customers and the surrounding choose to place part of their business here in while at the same time carrying out several of creating the best possible connections society will continue in 2019. Denmark. significant construction projects at the core between Denmark and the rest of the world. of the airport. This has been challenging. The We wish to create stronger partnerships and Air travel is essential for maintaining our The charges agreement enables us to carry Board of Directors would like to extend a big more responsible solutions as a precondition wealth. A small nation such as Denmark on developing the airport of tomorrow in a ’Thank you’ to employees and management for meeting future challenges – not least the depends on trading with the rest of the profitable and sustainable way. In 2018, we for the major effort and for a good year. climate challenge. world. Air travel, however, also affects the invested DKK 2.1 billion in expanding and climate. In recent years, we have looked into improving the airport – and we expect to In the years to come, we wish to strengthen The airport at Kastrup has a 93-year history how we can do more to reduce our climate continue to make significant investments on the collaboration with our partners towards and over the decades we have accumulated impact. Establishing strong collaboration on the journey towards an airport capable of making travel more sustainable and crea- a huge amount of knowledge. At times, long-term improvements is urgent. There- handling 40 million travellers. ting a greener airport