MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 Annual Report

2011 Annual Report MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 Annual Report

CONTENTS

3 Mission and Vision ------4 - 5 Messages ------6 - 7 Board of Directors ------8 –22 Operational Reports ------23 -32 Financial Report ------33 –34 Completed Projects ------35 Plans for 2012 ------36 Future Plan MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 Annual Report

Vision

To operate a major airport hub in the Asia Pacific Region manned by professionally competent and widely experienced men and women committed to provide quality and efficient service to its clients.

Mission

We are dedicated to operate an airport using the optimum standards of aviation to ensure safety, security and comfort of all airport users and stakeholders. We are a socially responsible organization that cares for people and the environment while promoting tourism and business development. We commit to achieve synergy among all stakeholders to build a lasting culture of excellence, service and profitability. MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

M e s s a g e MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 Annual Report GM/CEO’S MESSAGE

Republic of the DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS MACTAN - CEBU INTERNATIONAL AIRPORT AUTHORITY OFFICE OF THE GENERAL MANAGER

The year 2011 was a very good year of Mactan Cebu International Airport. Aircraft and passenger traffic grew and major projects started like the Expansion of Passenger Terminal Building. There is a rapid growth in aviation industry as evidenced by the increasing aircraft and passenger traffic. At present the terminal is congested as the terminal was designed for a 4.5M passengers. This project will address to the growing need for a wider and bigger terminal. Very soon this project will benefit the kind of facilities and services that passengers and airlines need.

We welcomed four (4) new airlines (Tiger Airways, Air Busan, Jin Air and Jeju Air) in 2011 thereby providing travelers with an additional choice when traveling to destinations such as Singapore, Pusan and Incheon.

Despite the global financial crisis and the various natural calamities in the Philippines and around the world Mactan Cebu International Airport performed very well financially. From a revenue of 1.23B in 2010 to P 1.349B in 2011, an increase 122.67M or that is 10% growth rate.

Engr. Nigel Paul Villarete General Manager MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

B o a r d o f D i r e c t o r s MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT BOARD OF DIRECTORS

Chairman Vice Chairman Member

Secretary Manuel Roxas II Secretary Ramon R. Jimenez Jr. Gov. Gywendolyn F. Garcia Department of Transportation & Department of Tourism Province of Cebu Communications

Member Member Member

Engr. Nigel Paul Villarete Secretary Leila De Secretary Mactan Cebu International Airport Department of Justice Department of Finance Authority

Member Member Member

Dir. Gen. Ramon Gutierrez Melanie C. Ng Rogelio Q. Lim CAAP Private Sector Private Sector

Board Member Member Secretary

Evelyn A. Ramirez Pericles Dakay Francis O. Monera Mactan Cebu International Airport Private Sector Private Sector Authority Alternate Board of Directors

USEC Aristotle Batuhan USEC Maria Victoria V. Jasmin USEC Vicente Salazar Dir. Ma. Edita Z.. Tan DOTC DOT DOJ DOF MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

O p e r a t i o n a l R e p o r t s MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 Annual Report Highlights 2011

Aircraft Movements 20 % 12 % Growth Growth Int’l Aircraft Domestic Aircraft

Military 3% Gen Av 36% Domestic 50% Int'l 11% Passenger Movements 22 % 13 % Growth Growth Int’l Passenger Domestic Passenger Gen Av Int'l 1% 23%

Domestic 76% MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 Annual Report

Highlights 2011 (continued)

Volume of Cargo 1 % Growth Domestic Cargo

Int'l 29%

Domestic 71% MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

C a r r i e r s & D e s t i n a t i o n s MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

Domestic

Manila Davao Iloilo Bacolod Cagayan Caticlan Ozamis Zamboanga Butuan Surigao Puerto Princesa Dumaguete Pagadian Dipolog Clark Legaspi MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

International

Incheon Hongkong Singapore Pusan Narita Doha Pudong Canton Chengju Daegu Muan MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

A i r c r a f t M o v e m e n t s MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

I. D omestic Aircraft Movements

In the last five (5) years, 2006 to 2011 domestic aircraft movements consistently rise in number from 22,128 to 44,300. The volume of domestic aircraft traffic doubled with an increase of 100%. The growth rate from 2010 to 2011 is twelve percent (12%) that is from 39,470 to 44,300 aircraft movements.

2011 Domestic Aircraft

4500

4000

3500

3000

2500

2000

1500

1000

500

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1991 - 2011 Domestic Aircraft 45,000

40,000 35,000 30,000

25,000 20,000 15,000

10,000

5,000

0 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT II. I nternational Aircraft Movements

Mactan Cebu International Airport set new records in 2011, with international aircraft movements rapidly climbed to twenty percent (20%) compared a year ago. Average annual growth rate from 1991 to 2011 is fourteen percent (14%) that is from 786 in 1991 to 9,509 in 2011.

2011 International Aircraft 1000

900

800

700

600

500

400

300

200

100

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1991 - 2011 International Aircraft 10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

P a s s e n g e r M o v e m e n t s MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT I. D omestic Passenger Movements

Domestic passenger traffic reached 4,748,333 in 2011 with an increase of thirteen percent (13%). In year 2006 passenger traffic was 2,291,952 but five (5) years after it quickly rocketed to 4,748,333, the increase is one hundred seven percent (107%).

2011 Domestic Passenger 500,000

450,000

400,000

350,000

300,000

250,000

200,000

150,000

100,000

50,000

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1991 - 2011 Domestic Passenger 5,000,000

4,500,000

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT II. I nternational Passengers A sharp increase in the volume of international passenger traffic was recorded recently in Mactan Airport from 1,206,801 to 1,406,613, marking an increase of twenty percent (20%). Average annual growth rate since the start of Mactan Cebu International airport is nineteen percent (19%).

2011 International Passenger 160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1991 - 2011 International Passenger 1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

C a r g o M o v e m e n t s MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT I. D omestic Cargoes

Domestic cargo slightly improved by one percent (1%). A total of 36,511 metric tons was recorded at Mactan Cebu International airport in 2011.

2011 Domestic Cargo

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1991 - 2011 Domestic Cargo 45,000,000

40,000,000

35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT II. I nternational Cargoes

International cargo declined by eighteen percent (18%) from 18,685 metric tons in 2010 to 15,272 metric tons in 2011. Mactan International Airport was greatly affected by the impact of economic crisis worldwide.

2011 International Cargo

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1991 - 2011 International Cargo

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

F i n a n c i a l R e p o r t s MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT Revenue Revenue 150

125

100

75

50

25 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 2011

1991-2011 Revenue

1400000 To sum up the total revenue generated by Mactan Cebu International Airport Authority since it started in 1991 up to 2011 is approximately 11.68B. Total revenue in 1200000 1991 was 34.36M and went up to 1.349B in 2011. The revenue in 2011 is 122.67M higher than that in 2010 , a ten percent (10%) increase.

1000000

800000

600000

400000

200000

0 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT INCOME STATEMENT For the month of December 2011

Current Total Month To date Gross Revenues Aeronautical P 85.30 P 986.42 Non- Aeronautical 10.91 322.32 Total Gross Revenues 96.21 1,308.74 Less: Operating Expenses Personal Services 30.45 216.68 M O O E 47.38 283.23 Total Operating Expenses 77.83 499.91 Net Income Before Taxes & Depreciation 18.38 808.83 Less: Taxes 6.26 560.88 Depreciation 0.48 0.94 Total Taxes and Depreciation 6.74 561.82 Net Income/(Loss) P 11.64 P 247.01 Add: Non Operating Income 3.55 40.31 Net Income Subject to Tax 15.19 287.32 Provision for Income Tax P 86.20 MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

Revenues (2010-2011) (In Million Pesos) December January- December Inc./ Inc./ 2011 2010 (Dec.) 2011 2010 (Dec.) Gross Operating Revenues Aeronautical 85.30 75.33 13% 986.42 869.19 13% Non- Aeronautical 10.91 27.21 (60%) 322.32 316.65 2% 96.21 102.54 (6%) 1,308.74 1,185.84 10% Less: Operating Expenses Personal Services 30.45 42.75 (29%) 216.68 200.36 8% M O O E 47.38 42.36 12% 283.23 264.90 7% Total Operating Expenses 77.83 85.11 (9%) 499.91 465.26 7% Net Income Before Taxes & Depreciation 18.38 17.43 5% 808.83 720.58 12% Less: OperatingTaxes Expenses 6.26 82.26 (92%) 560.88 83.00 576% Depreciation 0.48 11.34 (96%) 0.94 11.34 (92%) 6.74 93.60 (93%) 561.82 94.34 496% Net Operating Income/(Loss) 11.64 (76.17) (115%) 247.01 626.24 (61%) Add: Non Operating Income 3.55 3.38 5% 40.31 40.54 (1%) Net Income Subject to Tax 15.19 (72.79) (121%) 287.32 666.78 (57%)

Provision for Income Tax 86.20 200.03 (57%) MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT Comparative Balance Sheet CY 2011- 2010 (in million pesos) December 2011 2010 Inc./(Dec) ASSETS Current Assets Cash 1,609.01 1,490.55 8% Inventories 21.78 21.73 0% Receivables (Net) 113.10 116.11 (3%) Total Current Assets 1,743.89 1,628.39 7% Other Assets 49.08 60.35 (19%) Contingent Assets 3.40 3.45 (1%) Investments 3.05 3.05 0% Sub-total 55.53 66.85 (17%)

Fixed Assets MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT Comparative Balance Sheet CY 2011- 2010 (in million pesos) December 2011 2010 Inc./(Dec) Fixed Assets Land & Land Improvements (Net) 1,861.01 1,856.01 0% Furnitures, Fixtures, Eqpt. Work Animals and Books (Net) 318.08 316.23 1% Building & Structures (Net) 2,527.83 2,471.71 2% Total Fixed Assets 4,706.92 4,643.95 1%

T O T A L A S S E T S 6,506.34 6,339.19 3% MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT Comparative Balance Sheet CY 2011- 2010 (in million pesos) December 2011 2010 Inc./(Dec) LIABILITIES Current Liabilities Payables 109.06 111.82 (2%) Trust Liabilities 84.11 141.71 (41%) Depository Liabilities Misc. Liab & Deferred Credits 30.96 31.76 (3%) Total Current Liabilities 224.13 285.29 (21%) MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT Comparative Balance Sheet CY 2011- 2010 (in million pesos) December 2011 2010 Inc./(Dec) Residual Equity Cumulative Results of Operations Balance/Retained Earnings 1,687.46 1,459.15 16% Transfer from Other Govt Agencies 2,865.71 2,865.71 0% Invested Capital 1.81 1.81 0% Contingent Capital 3.11 3.11 0% Capital- Miscellaneous 1,724.12 1,724.12 0% Total Residual Equity 6,282.21 6,053.90 4%

TOTAL LIAB.& RESIDUAL EQUITY 6,506.34 6,339.19 3% MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT COMPARATIVE CASHFLOW STATEMENT CY 2011-2010 (in million pesos) December 2011 2010 Inc/(Dec) Cash Flow from Operating Activities Cash Inflow from Operating Activities Cash Receipts from Operations P 1,347.71 P 1,222.31 10% Trust Receipts (BTR/NACAHT) 108.84 89.71 21% Interest Received 38.35 39.30 (2% ) Cash Outflow from Operating Expenses Cash Paid to Suppliers and Employees (850.23) (641.72) 32% Income Taxes Paid (225.43) (17.99) 1153% Net Cash from Operating Activities 419.24 691.61 (39% ) Cash Outflows from Investing Activities Purchase of Property, Plant & Equipment 67.41 216.48 (69% ) Dividends Paid 233.37 411.49 (43% ) Net Cash used in Investing Activities 300.78 627.97 (52% )

Net Inc./(Dec.) in Cash & Cash Equivalents 118.46 63.64 86% Cash & Cash Equivalents at Beginning of Year 1,490.55 1,426.91 4% Cash & Cash Equivalents- ending P 1,609.01 P 1,490.55 8% MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT COMPARATIVE CASHFLOW STATEMENT CY 2011-2010 (in million pesos) December 2011 2010 Inc/(Dec) Breakdown of Cash & Cash Equivalent Current Account- LBP P 78.44 P 115.50 (32% ) Current Account Trust- LBP 9.55 39.49 (76% ) SARO (Nat'l Govt) 0.03 (100% ) Dollar Savings- LBP 23.33 19.33 21% Time Deposit (Peso)- LBP 1,496.20 907.67 65% Time Deposit (Peso) PVB 84.65 (100% ) Collecting Officer (Deposit in transit) 1.29 5.24 (75% ) Other Officers 0.06 (100% ) Treasury Bills 318.58 (100% ) TOTAL P 1,609.01 P 1,490.55 8% MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

C o m p l e t e d P r o j e c t s MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT Completed Projects

Name of Project Cost

1. Feasibility Study of the P 5.5 - MCIAA Construction of the New US$ 1.1M - KOICA Generation Terminal and Updating of Airport Master Plan. 3. Asphalt Overlay at Taxiways – P 9M Juliet and Golf

4. Repainting of Roofing at P 1.4M International Terminal Building

5. Purchase of One (1) Unit Brand P 15M New Structural Fire Truck

6. Repainting of Airfield Pavement P 8.4M Markings

7.Refurbishment of Rest Rooms at P 7.3M International Terminal Building

8. Pavement Surface Cleaning P 1.98M MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

Plans for 2012

Mactan-Cebu International Airport Authority (MCIAA) will soon be renovating the Passenger Terminal Building and will purchase one unit major foam fire truck, three units passenger boarding bridge and one unit friction tester. MACTAN CEBU INTERNATIONAL AIRPORT AUTHORITY 2011 ANNUAL REPORT

Future Plan

Mactan-Cebu International Airport Authority (MCIAA) plans to Construct a New Passenger Terminal and Apron Extension.