Annual Report 2020 QAL Annual Report 2020 | 2 Our Culture
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Annual Report ContentsContents 03 Our05 VisionOur Vision 04 Our06 CulturOure Culture 2020 05 About07 UsAbout Us 11 C13OVID-19 COVID-19 Impacts Impacts 14 Shar16 eholderShareholder Value Value 15 Financial17 Financial Results Results 18 Customer20 Customer Experience Experience 20 Social22 ResponsibilitySocial Responsibility 23 High25 PerfHighorming Performing Workforce Workforce 25 Accomplished27 Accomplished Operators Operators 27 Looking29 Looking Ahead Ahead 1 | QAL Annual Report 2020 QAL Annual Report 2020 | 2 Our Culture Our Vision Our Values Strategic Framework Integrity The strategic framework illustrates how our vision • We value honesty, respect and fairness and values support the achievement of goals linked to our corporate pillars of shareholder value, customer • We do what we say experience, social responsibility, high performing • We act in the best interests workforce and accomplished operators. Engaging customers Teamwork • Together we succeed • Everyone is a customer Connecting communities • We are inclusive and support each other Passion assion P I nn ov • We are enthusiastic k at or io w n Exceptional experiences • We care about what we deliver m a e • We take pride in our work T Customer A experience c Innovation c o • We think differently u y n t i t • We are creative and flexible r a Social Accomplished b We will fulfill our vision by: g e responsibility operators i t Our vision l i t • n We share our experience to build new ideas y I Engaging customers. Accountability Connecting communities. Exceptional experiences. • We take responsibility for our actions • Growing our airports through collaboration with our partners E s x • We lead by example e • Providing seamless, high-quality experiences for our customers High Shareholder c u l performing value e a l • Safety and social responsibility are priorities workforce l e V • Connecting, and being connected to, the communities in which we operate r n c u e • Engaging with our customers throughout their journey Excellence O • Fostering growth within our communities • We have high performance standards • Investing in our people and empowering them to help achieve our vision • We add value and deliver quality • Elevating and setting the industry standard through innovation and creative • We embrace change and deliver outcomes thinking 3 | QAL Annual Report 2020 QAL Annual Report 2020 | 4 About Us Queensland Airports Limited (QAL) is an accomplished airport operator that owns and operates Gold Coast, Townsville, Mount Isa and Map of Operations Longreach airports. An Australian-owned company, we are committed to delivering for the communities where we operate. We welcomed about 6.3 million passengers in FY20 – connecting the Gold Coast and northern New South Wales, along with regional Queensland, to the rest of the country and beyond. QAL is a privately-owned company and its shareholders include superannuation and investment funds: • Gardior as trustee for The Infrastructure Fund • Perron Investments Pty Ltd • QAL Investments No.2 Pty Ltd as trustee for QAL Investments Trust • STC Funds Nominee as trustee for the Project Cricket State Super Unit Trust • State Street Australia Ltd as custodian for Sunsuper Superannuation Fund Townsville • Allan Moss Mount Isa • Lipno Investments Pty Ltd Longreach Gold Coast 5 | QAL Annual Report 2020 QAL Annual Report 2020 | 6 Chairman and CEO’s Message The last year has been incredibly challenging for the Throughout this crisis, our primary focus was on our aviation industry – airlines and airports have been hit people, our passengers and our partners. Most of our hard by COVID-19 and associated travel restrictions. employees started working from home on 26 March As a result in FY20 we recorded 6.3 million passengers and this continued for almost four months. A number of (down 25 per cent on the previous year) and EBITDA of employees left the business as a result of the downturn $68.3m (down 29 per cent). in activity. We thank them for their efforts during their time with QAL and wish them all the best for the future. The company was in the middle of a significant capital program when restrictions began, which included Travel restrictions remain in place at the time of construction of the Gold Coast terminal expansion and preparing this report, and FY21 results will continue to airport hotel. In Townsville the plans for the terminal be impacted. We have worked to safeguard the future redevelopment were being refreshed, roof works were of the company and will continue to do so for some completed and the entrance road was being realigned. time to come. Despite the ongoing challenges and Those and other capital projects were supported by uncertainty, we remain positive about the opportunity growing passenger numbers at the time. On the Gold with pent up demand for travel once borders open. The Coast, another record was set on 4 January when recovery in Townsville, Mount Isa and Longreach is well 25,544 passengers travelled via our airport. In Mount underway. The Gold Coast’s recovery is dependent on Isa, 11 consecutive months of growth were notched up borders reopening, particularly to key volume markets in by February. The new Jetstar Gold Coast-Seoul service Sydney, Melbourne and New Zealand. started strongly in December – boosting international There is no doubt visitors will come back in significant passenger numbers for Gold Coast Airport. numbers to the outstanding destinations waiting in But by March it was clear the landscape had changed. Queensland and northern New South Wales when they Travel restrictions were announced and the Queensland can travel freely again. border shut on 25 March. Gold Coast Airport, which We would particularly like to thank our board, normally welcomed about 18,000 passengers a day employees and our partners, who have displayed and 420 flights per week, was impacted the most incredible resilience, flexibility and understanding and closed for seven days in April due to no services. throughout this difficult period. We look forward to Although limited services resumed, passenger numbers rebuilding the QAL business and all the businesses it were down 99 per cent for the balance of the year. Our supports together. other ports, which had some interstate activity, fared slightly better. The board and executive team quickly — John O’Neill AO, Chairman focused on the crisis, putting plans in place to protect — Chris Mills, CEO the business and position it for recovery. Measures were implemented to reduce operating costs, defer capital spend, improve liquidity, and ensure the terminals were operating in a COVID safe manner. Left to right: Chris Mills and John O’Neill AO 7 | QAL Annual Report 2020 QAL Annual Report 2020 | 8 Hugh William FitzSimons Elizabeth Jane Albergoni B.Ec, LLB (Hons) LLB, LLM (Hons 1) Non-executive director appointed 1 February 2019 Non-executive director appointed 28 February 2019 Member of the Remuneration Committee Member of the Risk and Audit Committee Hugh leads the transport and healthcare sector for Elizabeth is an investment director based in Sydney for Left to right: Steven Fitzgerald, John O’Neill, Amanda McMillan, Macquarie Infrastructure and Real Assets in Australia and HRL Morrison & Co where she has responsibility for Hugh FitzSimons, Ashley Kilroy, Alan Mulgrew New Zealand and has worked at Macquarie since 2004. the performance of several investments the company He is a member of the management committee of The manages on behalf of its clients. She has extensive Infrastructure Fund and is the chief operating officer of industry executive experience including nine years Absent from group picture; QAL Board Elizabeth Albergoni. the Macquarie Global Infrastructure Fund series. Hugh is with Sydney Airport and several years working as also a director of the Port of Newcastle. a competition and regulatory lawyer, focussed on infrastructure. Elizabeth is a director of Perth Airport, Land Registry Services and an executive board member John O’Neill AO organisations, both in Australia and overseas – including of the World Airport Lawyers’ Association. Perth and Sydney airports. He is a non-executive Chairman of the Board director of Adelaide Airport Ltd, CBH Group and Non-executive director appointed 1 July 2019 Interflour Group. He is the former chairman of Western Member of the Remuneration Committee Power, Tourism WA, Western Carbon, Australian John has created success running three major Renewable Fuels Pty and Tesla Corporation. Alan was organisations in banking and international sports. also a non-executive director of Doric Group and Jaxon Previous senior management roles include at the Constructions. State Bank of New South Wales, Australian Rugby Union (ARU) and Football Federation Australia (FFA). Steven Fitzgerald BEcon John was appointed as chairman of Star Entertainment Non-executive director appointed 23 March 2018 Group in 2012 and Bates Smart Advisory Board in Chair of the Remuneration Committee Left to right: Carl Bruhn, Marion Charlton, Adam Rowe, 2018. John is also an advisory council member of Steven is head of asset management at Morrison & Kevin Gill, Chris Mills, Amelia Evans, David Hedges China Matters. Co and a director of TransGrid and Perth Airport. John was a recipient of the Australian Sports Medal Previously he was chief executive officer at Wellington in 2000 for his ongoing contribution to the nation’s International Airport and ran Infratil’s European airports. sporting success and was appointed an Officer of the Steven also worked for Sydney Airport, where he held a QAL Management Team Order of Australia in 2004. number of senior roles which included general manager airport operations, head of commercial trading and Ashley John Kilroy FAICD manager economics. Chris Mills Adam Rowe Non-executive director appointed 26 October 2012 Amanda McMillan OBE Member of the Risk and Audit Committee Chief Executive Officer Executive General Manager Business Development and Marketing Ashley is a former airline executive with more than BAcc, CA • Joined 2014 • Joined 2017 40 years’ aviation management experience with TAA/ Non-executive director appointed 22 August 2018 Australian Airlines and Qantas.