THE CENTRE of EXCITEMENT Annual Report 2014 2 Malaysia Airports Holdings Berhad • Annual Report 2014 16Th ANNUAL GENERAL MEETING
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MITSUI OUTLET PARK KLIA MALL HOTEL SAMA-SAMA THE CENTRE OF EXCITEMENT Annual Report 2014 2 Malaysia Airports Holdings Berhad • Annual Report 2014 16th ANNUAL GENERAL MEETING Date : 5 May 2015, Tuesday THE CENTRE OF EXCITEMENT Time : 11.00 a.m. Venue : Gateway Ballroom, Level 1 In the last one decade, Malaysia Airports has striven to bring unparalleled ef ciency Sama-Sama Hotel in airport operations and management, top-notch service quality and solid returns Kuala Lumpur International Airport to our shareholders while remaining committed to sustainable and ethical practices. Jalan CTA 4B Our moving forward strategy is meant to energise the company and imbue our 64000 KLIA, Sepang employees with innovative spirit. Selangor Darul Ehsan We aim to create centres of excitement, not just at our airports but throughout the whole company. For all of us at Malaysia Airports, we look beyond our boundaries, to give all our stakeholders a complete experience. Malaysia Airports Holdings Berhad • Annual Report 2014 1 MITSUI OUTLET PARK KLIA MALL HOTEL SAMA-SAMA 2 Malaysia Airports Holdings Berhad • Annual Report 2014 INSIDE THIS REPORT PREFACE BUSINESS 004 Our Vision 004 Our Mission REVIEW 005 Malaysia Airports Today 044 Chairman’s Statement 006 Key Milestones 054 Managing Director’s Review of Operations 008 Media Highlights 072 Subsidiaries’ Performance 010 Letter from the Chairman 076 Corporate Responsibility 012 Notice of the 16th Annual General Meeting 016 Statement Accompanying Notice of the 16th Annual General Meeting 017 Location of the Annual General Meeting PERFORMANCE LEADERSHIP 080 Board of Directors REVIEW 082 Board of Directors’ Pro le 018 Key Financial Highlights 099 Group Senior Management 020 Group Segmental Analysis 103 Group Senior Management Pro le 021 Statement of Distribution 022 Statement of Financial Position 023 Statement of Workforce 024 Group Quarterly Performance 025 Group 5-Year Summary 027 5-Year Financial Highlights CORPORATE 028 Share Price, Volume Traded & Market Capitalisation 029 Group Financial Performance Review FRAMEWORK 034 Airport Performance Benchmark 112 Corporate Pro le 037 Dividend Policy 115 Corporate Information 039 Financial Calendar 116 Group Corporate Structure 040 Investor Relations 120 Group Organisational Structure 122 Calendar of Events 2014 128 2014 Awards 130 Past Awards & Accolades 132 Airports Managed by Malaysia Airports Malaysia Airports Holdings Berhad • Annual Report 2014 3 GOVERNANCE FINANCIAL 136 Statement on Corporate Governance 174 Financial Statements 161 Additional Compliance Information 163 Statement on Risk Management and Internal Control 170 Board Audit Committee Report 173 Statement of Directors’ Responsibility AIRPORTS STATISTICS 329 Malaysia Airports Traf c 2014 330 Passenger Movements 2014 332 Passenger Movements (2005 - 2014) 334 Passenger Movements at KL International Airport 2014 335 International Passenger Movements by Sectors at KL International Airport 2014 ios icon android icon 341 International Passenger Movements by Sectors at Other International Airports 2014 Enjoy interactive Augmented 343 Commercial Aircraft Movements 2014 Reality content by scanning 345 Commercial Aircraft Movements at KL International Airport 2014 the AR icon 346 Commercial Aircraft Movements (2005 - 2014) 1. Search for i-MAHB App 348 All Aircraft Movements (2005 - 2014) from Apple App Store or 349 Cargo Movements 2014 Google Play with your smartphone. 351 Cargo Movements (2005 - 2014) 353 Cargo Movements at KL International Airport 2014 2. Click the app and install. 354 International Cargo Movements by Sectors at KL International Airport 2014 (Please check your device 361 International Cargo Movements by Sectors at Other International Airports 2014 compatibility before installing) 363 Mail Movements 2014 365 Mail Movements (2005 - 2014) 3. Once installed, click open 367 Mail Movements at KL International Airport 2014 to launch the Augmented 368 International Mail Movements by Sectors at KL International Airport 2014 Reality (AR) App. 372 Movements at MAHB STOLports in Sabah & Sarawak 2014/2013 373 Airlines Operating at KL International Airport 2014 4. Click the start button from 374 De nitions the i-MAHB App to launch 375 Statistics of Shareholdings the AR camera. 379 Shareholders and Investors Information 380 List of Properties 5. Look for the “AR Icon” in 382 Group Corporate Directory the book and scan it with 383 Airports Directory the AR camera to enjoy interactive AR content. 384 Map to the AGM Venue • Proxy Form 6. You may click on the interactive button to explore additional contents. Leading Global Airport Company OPERATING INTERNATIONAL 3 OVERSEAS AIRPORTS AIRPORTS INVESTMENT– 5 2 AIRPORTS IN INDIA AND DOMESTIC 1 IN TURKEY 16 AIRPORTS STOLPORTS 18 IN MALAYSIA A DYNAMIC SERVING TEAM OF NEARLY 95 AIRLINES & 10,600 83.3 MILLION EMPLOYEES PASSENGERS IN 2014 Listed on Main Market of Bursa Malaysia since 1999 with market capitalisation of Total assets of RM11.55 RM22.53 BILLION AS AT 31 MARCH 2015 BILLION AS AT 31 DECEMBER 2014 6 Malaysia Airports Holdings Berhad • Annual Report 2014 KEY MILESTONES MALAYSIA AIRPORTS ‘91 INCORPORATION ‘98 OPENING OF KLIA MALAYSIA AIRPORTS LISTED ON MAIN BOARD OF BURSA ‘99 MALAYSIA SECURITIES BERHAD NEW MANAGEMENT TEAM appointed and given the goal of ‘03 driving a new business philosophy 50% MINISTRY OF FINANCE (INC.) STAKE TRANSFERRED TO KHAZANAH, increasing Khazanah’s stake to 73%. Transformation initiatives to run Malaysia Airports as a commercial ‘04 entity kicked off Malaysia Airports Holdings Berhad • Annual Report 2014 7 KEY MILESTONES MALAYSIA AIRPORTS IS KHAZANAH’S TOP 20 GLC for high performance and the rst in the region to recognise the booming Low-Cost Carrier (LCC) sector by opening the rst ‘06 dedicated terminal for LCCs (LCCT-KLIA) NEW OPERATING AGREEMENTS ‘09 SIGNED THE GROUND BREAKING CEREMONY ‘10 for the construction of klia2 SAMA-SAMA BRAND LAUNCHED Malaysia Airports embarked on the airport hotel ‘13 business and launched a new airport hotel brand. SMOOTH AND SUCCESSFUL TRIAL LANDING TESTING FOR RUNWAY 3 AT KLIA COMPLETION AND SUCCESSFUL FULL ACQUISITION OPENING OF klia2 OF ISTANBUL SABIHA GOKCEN INTERNATIONAL ‘14 AIRPORT IN TURKEY 8 Malaysia Airports Holdings Berhad • Annual Report 2014 MEDIA HIGHLIGHTS Malaysia Airports Holdings Berhad • Annual Report 2014 9 QR CODE MEDIA HIGHLIGHTS Scan this QR code to view more news from MAHB’s website. 10 Malaysia Airports Holdings Berhad • Annual Report 2014 LETTER FROM THE CHAIRMAN DEAR SHAREHOLDERS On behalf of the Board of Directors, it is my pleasure to enclose herewith a copy of the Annual Report and Audited Financial Statements of Malaysia Airports Holdings Berhad (“the Company” or “MAHB”) for the year ended 31 December 2014. The Annual Report also contains the Notice of the 16th Annual General Meeting (“the AGM” or “the Meeting”) and a map showing the location of the meeting. The AGM will be held at Gateway Ballroom, Level 1, Sama-Sama Hotel, Kuala Lumpur International Airport, Jalan CTA 4B, 64000 KLIA, Sepang, Selangor Darul Ehsan on Tuesday, 5 May 2015 at 11.00 a.m. Malaysia Airports Holdings Berhad • Annual Report 2014 11 LETTER FROM THE CHAIRMAN The global economy is picking up and we than 3.60 sen per ordinary share in respect Shareholders who are unable to attend the are moving in tandem with the expected of the nancial year ended 31 December AGM would still be able to exercise their growth this year. As a world-class 2014 with a total quantum of nal single- rights to vote, by completing the Proxy airport company, one of our priorities tier dividend amounting to RM59.47 Form enclosed in the Annual Report, is to uphold or preserve our reputation million, subject to the shareholders’ according to the instructions as provided as an aggressive, dynamic and reliable approval at the AGM. The Board had in the Proxy Form, and submitting it to organisation that continues to chart on 13 February 2015 determined that the Registered Of ce of the Company success in a highly competitive global the Dividend Reinvestment Plan (“DRP”) at Malaysia Airports Corporate Of ce, aviation market, where competition is will apply to the entire nal dividend. Persiaran Korporat KLIA, 64000 KLIA, tougher and requires bolder decisions Therefore, the Notice of Book Closure Sepang, Selangor Darul Ehsan, not less and investments for the bene t of all our Date, the Entitlement Date and the than 48 hours before the time set for stakeholders. Therefore, it is only apt to Payment Date will only be announced on holding the Meeting or any adjournment choose “The Centre of Excitement” as the day the Issue Price of the shares to be thereof. the theme of our Annual Report. issued under DRP is announced. I look forward to meeting all the The Annual Report and Audited Financial At the AGM, the Board is recommending shareholders at the forthcoming AGM and Statements provides a comprehensive the re-election of six (6) Directors who to share the latest issues and activities statement of our strategic direction, latest are due for retirement, namely, Datuk concerning the Company. undertakings, achievements & awards, Mohd Badlisham bin Ghazali, Dato’ Siti corporate responsibilities & government- Zauyah binti Md. Desa, Datuk Dr. Ismail Yours sincerely, initiatives, as well as the Company’s bin Hj. Bakar, Tan Sri Dato’ Sri Dr. Wan nancial disclosure for the shareholders’ Abdul Aziz bin Wan Abdullah, Jeremy bin attention and review. These documents Nasrulhaq and Tunku Dato’ Mahmood can also be accessed at our corporate Fawzy bin Tunku Muhiyiddin and being website at www.malaysiaairports.com.my. eligible, offer themselves for re-election. For the year 2015, ten (10) resolutions I also believe that you should be able are proposed for the consideration at to comprehend the rest of the agenda/ the AGM. The purpose and reasons for proposed resolutions which include, Tan Sri Dato’ Sri Dr. Wan Abdul Aziz each resolution are explained under amongst others, the presentation of bin Wan Abdullah the Explanatory Notes of the Notice of the Audited Financial Statements, the Chairman AGM.