Annual Report 2011 Annual Report 2011 The SEA Group attention paid to environmental protection has, through the adoption of specific initiatives, resulted in a significant reduction in direct and indirect CO2 emissions. In 2011, Malpensa and Linate were amongst the first European airports to obtain “Neutrality” level under the scope of the European Airport Carbon Accreditation initiative. Contents General information 3 HR Management 70 Mission 4 Human resources 71 SEA Group profile 4 Managerial and operative processes 71 Corporate bodies 7 Development and training 72 Letter to shareholders 8 Welfare 72 SEA Group numbers 10 Industrial relations 72 2011 Report on Operations 12 Corporate governance system 73 FY 2011: significant events 13 Profile 74 Focus on results 16 Code of Ethics 75 Reference context, markets and legislation: evolution 17 Corporate Governance Report 75 Aviation 25 SEA Group economic, Performance indicators 26 equity and financial trend 76 Economic trend 27 Economic trend 77 Cargo and passenger traffic trend 27 Equity and financial trend 81 Aviation commercial policy 33 Consolidated Statement of Cash Flows 82 2011 review of bilateral agreements 34 Investments in the Aviation Area 35 SEA Group risk factors 85 Strategic risk 86 Non Aviation 36 Operational risk 87 Performance indicators 37 Commodity risk 88 Economic trend 38 Financial risk 88 Commercial business trend 39 Real estate business trend 43 Significant events after year end 89 Non Aviation commercial policy 44 Proposals to the Shareholders’ Meeting 92 Handling 45 Proposals to approve the financial statements Performance indicators 46 and allocate the period profits 93 Economic trend 47 Handling trends 47 SEA Group - Consolidated financial statements 94 Handling commercial policy 50 Accounting schedules 95 Notes to the consolidated financial statements 99 Energy 51 Report by the Board of Auditors Performance indicators 52 to the consolidated financial statements 139 Economic trend 53 Report certifying the consolidated Energy production and sale business trend 53 financial statements 141 Energy commercial policy 55 SEA - Financial statements 143 Corporate Social Responsibility 56 Accounting schedules 144 The SEA Group sustainable development policy 57 Notes to the separate financial statements 148 The “social” dimension 58 Report by the Board of Auditors The environmental dimension 59 to the financial statements 192 Report certifying the financial statements 197 Quality of service and Airport safety 65 Customer Care 66 Passenger services 67 Cargo service charter 68 The Safety Management System 68 Health and safety at work 69 General information 4 General information Mission The SEA Group mission is to create value for all destinations to a multitude of users operating in a parties directly involved in the Group business: catchment area that is amongst the most developed in shareholders, customers and employees. This Europe. The aim is to provide a point of reference for objective is pursued through the offer of services and the growth of the economy and territory of the whole solutions to meet the growing demands of a market of Northern Italy. comprising multiple entities including passengers, The services provided by the SEA Group are airlines, airport operators and commercial partners, guaranteed by the management and development of operating on Malpensa and Linate airports. safe, avant-garde infrastructures. The social growth The airport infrastructures managed by SEA of the reference community and environmental guarantee aircraft access towards major international protection are considered essential. SEA Group profile Corporate profile The airports managed by the Group are connected to an extensive road and railway network that continues On the basis of the forty-year agreement signed by to expand and guarantees around 14 million people SEA and Enac in 2001, the SEA Group manages access in reasonable time, in line with that of the Malpensa and Linate airports through a balanced, major European international airports. Moreover, diversified system of airport capacity: current work in progress on the road and rail networks will enable the reference basin of its airports • Milan Malpensa 1, terminal devoted to business and to be extended to more than 20 million people. leisure customers on national, international and intercontinental routes, with areas allocated to The SEA Group companies guarantee all services scheduled and charter air carriers; connected with airport management, including the • Milan Malpensa 2, terminal devoted to the higher arrival and departure of aircraft, airport safety end of low cost traffic; management and passenger and cargo handling • Milan Malpensa Cargo, infrastructure supporting services, in addition to a range of commercial services cargo transport, enabling more than 500,000 tonnes on offer to airport operators and users. of cargo to be managed each year; Through SEA Energia, the Group also produces both • Milan Linate, airport serving a frequent flyer clientèle electricity and thermal energy intended to cover the on high appeal domestic and intra-EU international demands of the airports and be sold to third parties. flights. The airport system managed by the SEA Group is Business areas amongst the top ten managers in Europe in terms of traffic volume, both in the passenger segment and in The SEA Group strategy is implemented through the the cargo segment; in Italy it comes in a respective subdivision of its business into four separate business second and first place in these business areas. More units, each with its own competences and specific specifically, Milan Malpensa Cargo moves more than operative processes in order to maximise Group 50% of national cargo traffic. managerial efficiency. General information 5 Aviation Handling The Aviation business consists of the core airport Handling - managed through SEA Handling, a activities in support of passenger and cargo aviation. subsidiary of SEA - consists of providing land-side They consist of the management, development and assistance services to aircraft, passengers, luggage, maintenance of the infrastructures and plants cargo and post. The income generated by this segment comprising the airports and of offering customers of consists of market fees for the “ramp” handling the SEA Group services and activities connected with business (i.e. air-side provided services, including the the arrival and departure of aircraft in addition to boarding/disembarking of passengers, luggage and airport safety services. cargo, aircraft balancing, and luggage distribution and reconciliation) and for the “passenger” handling The income generated by these activities is defined by business (i.e. services provided land-side, including a regulated tariff system. It comprises airport fees, check-in and lost & found). These fees are negotiated fees for the use of centralised infrastructures and independently by the SEA Group through SEA common goods in addition to fees for safety and Handling with each airline. tariffs for the use of space by airlines and handlers. Income* (in millions of euros) Income* (in millions of euros) 2011 129.1 2011 283.2 65.1 348.3 2010 139.5 2010 270.6 48.4 319.0 2009 147.1 2009 280.0 31.1 311.1 Operating income Income for work on goods granted under concession (ex IFRIC) EBITDA* (in millions of euros) 2011 -2.2 EBITDA* (in millions of euros) 2010 7.2 51.3 3.6 54.9 2011 2009 -21.1 2010 47.0 2.7 49.7 (*) Figures include non-recurring elements and, for the Handling Business Unit, 2009 57.3 2.4 59.7 the deconsolidation of MLE since 2010. Operating EBITDA Impact deriving from the application of IFRIC 12 (*) Figures include non-recurring elements and, for the Handling Business Unit, Energy the deconsolidation of MLE since 2010. The segment business – provided through SEA Energia, a subsidiary of SEA – includes the generation and sale of Non Aviation electricity and thermal energy, intended both to cover Non Aviation business includes offering a wide, the demands of its airports and for sale on the external differentiated range of commercial services, both market. Energy is produced by means of cogeneration directly managed and subcontracted out to third plants situated in the airports managed by the SEA parties, intended for passengers, operators and visitors Group. More specifically, the Milan Malpensa to Milan’s airports, in addition to real estate business. cogeneration plant has a maximum annual production capacity of 613 GWh for electricity and 543 GWh for The income of this area consists of market fees for the thermal energy. The Milan Linate plant has a maximum activities provided directly by SEA or, with reference annual production capacity of 210 GWh for electricity to said activities carried out by third parties under a and 157 GWh for thermal energy. All excess thermal subcontracting agreement, of royalties expressed as energy produced by this latter plant, over and above the percentages of income realised by the third party airport’s needs, is sold to A2A for heating. The related operator, generally speaking with some form of income of this business area consists of market fees agreed guaranteed minimum. established per unit of measurement sold, multiplied by the quantity of energy supplied. Income* (in millions of euros) Income (in millions of euros) 2011 174.7 62.4 2010 169.9 2011 52.9 2009 166.9 2010 2009 46.2 EBITDA* (in millions of euros) EBITDA (in millions of euros) 2011 84.7 2010 81.7 2011 13.2 2009 95.3 2010 12.4 (*) Figures include non-recurring