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Report 18 Contents AIR TRAFFIC & NAVIGATION SERVICES SOC LIMITED INTEGRATED 20 REPORT 18 CONTENTS Performance highlights 4 About the Integrated Report 5 Scope and boundary of report 5 Navigating this report 5 Referencing content online 7 Feedback 7 Approach to integrated reporting 7 Sustainability statement 7 Assurance 8 Statement of precautionary principle 10 Board of Directors Approval Statement 10 Organisational profile 12 Vision 12 Mission 12 Values 12 Nature and purpose of our business 12 Organisational structure and business model 12 Structure of ATNS’s operations 17 Contextualising our operations 22 Global business context 25 Regional context 25 National context 25 Developmental context 25 Commitment to external initiatives 28 Leadership review 29 1 CONTENTS CONTINUED Governance and assurance 34 Performance 114 Application of KING IV 34 Ensure long-term financial sustainability 114 Ethical leadership and corporate citizenship 34 Enhancing operational efficiencies in line with global ATM standards 117 ATNS Board of Directors 42 Develop leadership capability in the Africa ATM space 120 ATNS Executive Committee 54 Create a transformative organisation 121 How ATNS’s control framework creates value 60 Build a culture of safety 123 Remuneration 66 Build a skilled and capable employee resource base 126 Code of ethics 70 Manage the organisation’s contribution to Climate Change 126 Manage and preserve scarce and vulnerable resources 128 Material issues 72 Develop enterprise-wide awareness for environmental impacts 131 Clustering of ATNS’s material issues 76 Ensure constructive and collaborative stakeholder relationships 131 Stakeholder engagement 79 Maintain an impeccable governance framework 134 Key stakeholders 79 Ensure regulatory alignment and compliance 135 Strategy 81 Performance against our Shareholder Compact 136 ATNS’s Strategic fundamentals 82 Outlook 144 Strategic drivers 82 Ensure long-term financial stability 144 Strategic imperatives 82 Enhance operational efficiencies in line with global ATM standards 146 Monitoring sustainable development outcomes 86 Create a transformative organisation 148 Creating value through the Capitals 88 Build a culture of safety 148 Build a skilled and capable employee resource base 149 Defining “value creation” 90 Manage the organisation’s contribution to climate change 149 Financial capital 90 Develop enterprise-wide awareness for environmental impacts 151 Manufactured capital 94 Intellectual capital 100 Consolidated 5-year review 152 Human capital 102 List of acronyms 156 Social and relationship capital 105 Natural capital 109 Company information 160 2 3 PERFORMANCE HIGHLIGHTS ABOUT THE INTEGRATED REPORT Scope and boundary of the report material aspects extend to other entities outside of STRATEGIC OBJECTIVES INDICATOR 2016/17 2017/18 the Company, as ATNS’s operations are located at different airports. Revenue R1,557 billion R1,594 billion This is our 6th consecutive Integrated Report and covers the financial reporting period from 1 April Ensure long- The previous Integrated Report was approved by term financial Operating costs R1,300 billion R1,382 billion 2017 to 31 March 2018. The Integrated Report the ATNS Board on 29 August 2017 and published sustainability combines financial and non-financial performance Net profit R184,5 million R190,1 million for the period 1 April 2016 to 31 March 2017. The in a single report. References to forward-looking 2016/17 reporting suite combined performance information and targets are extracted from the Total capital expenditure R307 million R305 million content, sustainability content and our Annual 2018/19 ATNS Corporate Plan approved by the Financial Statements across three reporting Enhance operational Communication • C: 99,80% C: 99,78% Board of Directors. volumes. A printed version of the three-volume efficiencies in line suite of reports was published and a web-based with global ATM Average The boundary of this report is largely the ATNS version of each report was made available in standards systems Navigation • N: 97,98% N: 96,30% availability legal entity. There may be instances where PDF format. Surveillance • S: 99,99% S: 99,97% • ATS AIC: 70,01% • ATS AIC: 72,27% • ATS Female: 42,43% • ATS Female: 46,55% Create a Navigating this report • ATNS AIC: 75,12% • ATNS AIC: 76,98% transformative Overall EE representation organisation • ATNS Female: 44,88 • ATNS Female: 47,35% • People with • People with Icons associated with strategic objectives disabilities: 3,31% disabilities: 3,22% Performance commentary in this report pertains to material issues that specifically align with the 2,57 safety events per Build a culture Safety events per 100,000 5,19 safety events per Company’s key strategic objectives. Accordingly, performance commentary is linked to strategic 100 000 air traffic of safety air traffic movements 100 000 movements objectives throughout the report by means of the following icons: movements Total number of ATS trainees 81 68 Ensure long-term financial Manage the organisation’s SUSTAINABLE sustainability AVIATION AFRICA contribution to Climate Change 22 (12 Engineering Build a skilled and Total number of engineering 6 learnerships and capable employee trainees 10 graduates) resource base Enhance operational efficiencies in Manage and preserve scarce and line with global ATM standards vulnerable resources Training investment as 8,13% 6,52% percentage of salary bill Deploy and use leading Develop enterprise-wide awareness technologies to the benefit of the for accountable environmental Develop enterprise- Total number of employees ATM community impact wide awareness trained on environmental 316 ATNS employees 0* for environmental training programmes impacts Develop leadership capability in Maintain an impeccable governance Africa ATM space framework Manage the organisation’s Total carbon inventory 23,292.01 tons CO2e 23,440,52 tons CO2e Create a transformative Ensure regulatory alignment and SUSTAINABLE AVIATION AFRICA contribution to organisation compliance climate change Ensure constructive and Manage and Overall annual electricity usage 20,515,469 kWh 20,358,981 kWh Build a culture of safety preserve scarce collaborative stakeholder and vulnerable relationships resources Overall annual fuel usage 89,761 Litres 81,612 Litres Build a skilled and capable employee resource base Ensure constructive and collaborative CSI spend R3,445,441 R2,521,704 stakeholder relationships * ATNS e-learning content being developed. 4 5 ABOUT THE INTEGRATED REPORT CONTINUED Referencing content online Materiality has been determined by the ATNS Icons associated with the six capitals Board of Directors and Executive Management through a process of extensive consultation within The 2017/18 Integrated Report, and ATNS’s Annual the organisation and with ATNS’s stakeholders. Performance commentary in this report further aligns with the Company’s perspective on value Financial Statements are available on our website The process considered ATNS’s strategic objectives creation, and in particular, value creation through the six capitals (financial, manufactured, as downloadable documents: http://www.atns. whilst taking into account the Company’s material intellectual, human, social and relationship and natural). Accordingly, performance commentary is co.za/annualreports. also linked to the six capitals throughout the report by means of the following icons: risks, strategic opportunities and the ATNS value chain. Feedback Financial capital Human capital Read more on the materiality determination process on page 72 and 73. We welcome feedback on our integrated reporting Manufactured capital Social and relationship capital to ensure that we continue to disclose information that is pertinent to all our stakeholders. P.16 Sustainability statement Intellectual capital Natural capital For further queries or suggestions kindly contact: As a signatory to multiple global conventions P.3 [email protected]. – including the Chicago Convention, which P.16 established the International Civil Aviation Icons referencing KING IV principles applied Approach to integrated Organisation (ICAO) as a specialised agency of the United Nations - South Africa’s vision for reporting sustainable development is embodied in the Abridged governance disclosures in this report are accompanied, where applicable, by icons referencing the P.5 applicable KING IV principle by means of the following icons: P.15 relationship between social systems, ecosystems The 2017/18 Integrated Report offers a and economic systems. As a State-Owned comprehensive account of the Company’s Company - and national provider of air traffic P = Principle performance in terms of its ability to create management (ATM) services – ATNS plays a King IV principles are referenced where appropriate in this report. value through the ‘six capitals’, as defined by the significant role in contributing to South Africa’s International Integrated Reporting Council (IIRC).1 sustainability agenda. Our Shareholder mandate, represented by the Minister of Transport and Icons associated with material issues We apply the principle of ‘materiality’ to: the entire Department of Transport, directs us to contribute to both departmental and national • Inform disclosures, so that they are both outcomes by balancing the safe development of Icon denoting one or more of ATNS’s 19 material issues. important to the organisation and relevant in civil aviation, with the responsible consideration terms of our reporting priorities for the year of our impacts on the economy,
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