Travelling Towards the Airport of the Future Group Annual Report 2019
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Travelling towards Copenhagen Airports the airport of the future Group Annual Report 2019 Company reg. (CVR) no.: 14 70 72 04 Group Annual Report 2019 Copenhagen Airports A/S Pursuant to section 149(2) of the Danish Report on corporate responsibility Forward-looking statements Lufthavnsboulevarden 6 Financial Statements Act, the Group Annual The statutory reports on corporate respon- – risks and uncertainties 2770 Kastrup Report 2019 is an extract of the complete sibility and the under-represented gender This Annual Report includes forward-looking Denmark Annual Report of Copenhagen Airports. prepared in accordance with sections 99a statements as described in the US Private The complete Annual Report, including and 99b of the Danish Financial Statements Securities Litigation Reform Act of 1995 Tel. +45 3231 3231 the Annual Report of the Parent Company, Act are provided in the sections on Business and similar acts of other jurisdictions on E-mail [email protected] Copenhagen Airports A/S, (pages 119-132) environment & model and Risk management forward-looking statements, including in Web www.cph.dk and the statutory report on corporate gov- and risks of the Management’s review particular statements concerning future Company reg. (CVR) no. 14 70 72 04 Established 19 September 1990 ernance, can be downloaded at www.cph. and in the Performance section. In these revenues, operating profits, business Municipality of registered office Taarnby dk/om-cph/investorer. Following adoption at sections, Copenhagen Airports A/S (CPH) expansion and investments. Such statements the Annual General Meeting, the complete explains how we worked with non-financial are subject to risks and uncertainties, as Designations Annual Report will also be available from the business targets in 2019 and outlines the various factors, many of which are beyond Copenhagen Airports, CPH, the Group and the company Danish Business Authority. results achieved during the year. For a more CPH's control, may cause actual results to are used synonymously to refer to Copenhagen Airports detailed, quantified description of CR results differ materially from the guidance expressed A/S consolidated with its subsidiaries and associates. The allocation of the profit for the year, achieved in 2019, see the non-financial in the Annual Report. Such factors include including the proposed dividend, is set out statements on pages 99-109. general economic and business conditions, Copenhagen Airport The airport at Kastrup, Copenhagen, owned on page 60. changes in exchange rates, the demand for by Copenhagen Airports A/S. CPH's services, competitive factors within Annual General Meeting the aviation industry, operational problems Roskilde Airport The Annual General Meeting will be held in one or more of the Group's businesses, The airport at Roskilde owned by on 2 April 2020 a 3:00 p.m. at the Vilhelm and uncertainties relating to acquisitions and Copenhagen Airports A/S. Lauritzen Terminal. divestments. See also Risk management and risks on pages 47-48. Published by Copenhagen Airports A/S Design and layout Kontrapunkt Translation Fokus Translations ISSN: 1904-25585 2 Contents Consolidated financial Management’s review & non-financial statements The big picture Taxation Consolidated financial From board & management .................. 5 Taxation & value creation ...................... 43 review & statements The Annual Report in five minutes ........ 7 Financial review .................................... 56 Sustainable aviation .............................. 12 Income statement ................................. 56 Business environment & model ............. 13 Safety & risk management Statement of comprehensive income ..... 57 Business strategy ................................... 15 Safety ................................................... 46 Balance sheet ....................................... 58 Outlook ................................................ 17 Risk management & risks ...................... 47 Statement of changes in equity ............. 60 Cash flow statement ............................ 62 Notes to the financial statements .......... 64 Performance Governance, leadership & shares Aeronautical business ........................... 19 Shareholder information ....................... 50 Passengers .......................................... 21 Corporate governance .......................... 51 Consolidated non-financial Route developments ........................... 24 Board of Directors & statements (unaudited) Roskilde Airport .................................. 26 Executive Management ........................ 52 Corporate Responsibility, ESG & KPI overview .............................. 100 Non-aeronautical business .................... 27 Climate Notes, non-financial statements ............ 101 Investments .......................................... 29 Page 33 Corporate responsibility Management statement Global Compact ................................. 31 & auditors’ reports UN sustainable development goals ...... 32 Management statement ....................... 111 Climate .............................................. 33 Independent auditors’ report ............... 112 Local community & neighbourhood .... 35 Independent auditors’ Environment & noise ........................... 36 limited assurance report ....................... 116 Waste & recycling ............................... 37 Attractive workplace ........................... 38 Working environment ......................... 40 Business ethics & human rights ........... 41 Passengers Page 21 3 Travelers in 2019 30.3 mill. The big picture FROM BOARD & MANAGEMENT possible. Climatic and financial sustainability sustainable aviation, engaging stakeholders is essential for the airport. and neighbors in creating the airport of the future, accelerating digitalisation and However, the business of Copenhagen developing the jobs and skills of the future Airports A/S is under growing pressure, (for more information, see page 15-16). Transforming and in recent years we have invested about DKK 2 bn. annually to develop the airport. Partnerships and climate targets Our financial strength and the necessary This is a record-high amount that today is sustainable transition are inextricably CPH for the future substantially higher than our profit before intertwined. Building the airport of the future tax. Furthermore, uncertainty about the cannot be separated from our ambitious We are undergoing rapid change in our journey towards the global economy, Brexit, trade wars and the goals for climate and the environment. In sustainable airport of the future. But the transition is not without coronavirus (COVID-19) has put our cash 2019, the airport was certified as carbon flows even under more pressure. This is neutral by Airports Council International challenges: comprehensive initiatives to reduce the climate footprint not a sustainable situation. based on both CPH’s own climate and of aviation, pressure on our earnings, billion-kroner investments and environmental efforts and through a certified on top global economic uncertainty. All of which makes for both So in light of the growing global economic climate project in Laos. This is the highest opportunities and challenges to solve in collaboration with our partners, uncertainty, all of the planned investments level of certification under the ACA pro- may not be possible given the cash flows gramme (Airport Carbon Accreditation). the authorities and our customers. We have devised a new strategy available. As a result, we will assess and Our next goal is, to be completely emissions- for how to achieve this. amend the level of investments according free by 2030. to the general economic development and risk situation. In 2019, the entire Danish aviation industry teamed up to launch a climate initiative. The Since 1925, Copenhagen Airport has helped 30.3 mill. passengers and 188 direct routes New strategy for the airport ambition is for Danish aviation to become to create travel opportunities, business and in and out of Copenhagen, it was a busy We launched a new strategy in 2019. Its a carbon neutral by 2050. It will require the experiences for millions of people. Air travel year. We reached a milestone on 4 June purpose is for CPH to be the Architects of development of new technology in order to not only provides cultural and social value. when H.R.H. Crown Prince Frederik inaugu- the Future Airport. While building on our succeed in leading the global green transition Every single air route creates wealth for all of rated Pier E, a DKK 2 bn. building project core strenghts of efficient and safe opera- of the aviation industry. Denmark. That is why we should not fly less, for a new terminal that provides more space tions, our new strategy is also focused on but rather more sustainably while making for travellers and large aircraft on long-haul our role in society, sustainable developments Through establishing a climate foundation climate a much greater consideration. routes out of Europe. and on taking the passenger experience to for aviation and participation in the Danish the next level. government’s climate partnership with the According to the national aviation strategy Climatic and financial sustainability aviation industry, we work with scientists, of 2017, the sector contributes at least Our profit before tax for 2019 fell by 8.7% We must focus even more on passengers, policy-makers and green organisations DKK 30 bn. per year to the Danish economy. to almost DKK 1.3 bn., primarily