Vision The Airports of Thailand Public Company Limited (AOT) is the Asia’s leading airport business. Mission To operate with exceptional standards, be service-minded and equipped with modern technology as well as be responsible for the society and community. Core Values • Safety and Security are the cores of our operations. • Service conscience : To render services with full understanding of the concept. • Cooperation : Unity, teamwork, more organizational goal oriented than personal goal oriented • Continual learning : To learn about changes of issues related to AOT’s business and counterparts for competitive capability and have an intention of self-development for better performances • Transparency and accountability : To operate tasks with transparency and accountability to shareholders, business partner, our society, and the country. Contents 2 Message from the Chairman 4 Report of the Audit Committee 6 Report of the Nomination Committee 7 Report of the Remuneration Committee 8 Report of the Risk Management Committee 9 Report of the Corporate Governance Committee 10 AOT Board of Directors 12 AOT Senior Executives 16 Organization Chart 18 History 19 General Information 20 Summary of AOT’s Financial Information 27 Business Characters 29 Risk Management 34 Shareholding Structure and Management 86 Connected Transactions 88 Air Traffic Statistics 97 Business Continuity Development 101 Don Mueang International Airport provides Full Service Operations 103 Improvement of Facilities for the Disabled 106 AOT’s Human Resources Development 110 Operation of Airport and Occupational Health Standards 117 Environmental Operations 119 Corporate Social Responsibility of AOT 131 Awards of Pride 134 Financial Statements A friendly destination for travellers from all over the world AOT aims to enhance management efficiency in parallel with supporting and placing importance on communities, society and the environment in order to participate in the country’s economic development and create a society for sustainable growth. Airport Destination Annual Report 2013 2 Airports of Thailand Public Company Limited Message from the Chairman Annual Report 2013 Airports of Thailand Public Company Limited 3 The executives and officers of AOT fully recognise the significant role played the aviation industry in driving the country’s economic and social expansion. We are also determined to strengthen AOT and turn it into Asia’s leading airport business operator in line with the commitments outlined in our vision for the future. The airport business has long served as an important gateway to welcome tourist visitors from all over the world. With travelling costs now affordable to all, the airports are today serving an ever-growing number of domestic travellers. The airports also accommodate logistics for goods, mail and postal parcels prior to distributing to various destinations over the world. It is thus clear that the airport industry is relevant to a vast variety of businesses including airlines, tourism, hotels, and logistics. AOT recognises this important role and continues to push the organisation forward so that it becomes one of Asia’s leading airport business operators. Despite the negative impacts of the global economic crisis and their effects on the Thai economy, the aviation industry in 2013 continued to show strong growth, thanks mainly to the ongoing expansion of the tourism sector. Air travel is gaining in popularity, particularly the flights offered by low-cost carriers, and these have been able to take advantage of AOT’s reopening of Don Mueang International Airport to cope with the growing air traffic movements. Thanks to unity of employees in all departments, AOT’s operating performance in 2013 is satisfactory and a reflection of efficient management. Air traffic movement statistics at the airports under AOT supervision also enjoyed growth compared to the same period of the previous year. Total passenger movements were 86,134,962 persons, an increase of 20.43%, total aircraft movements were 559,423 flights, an increase of 16.47% and cargo, mail and postal parcel movements totaled 1,321,161 million tons, representing an increase of 7.94% and AOT continues to place emphasis on upgrading the quality of its services to optimise customer satisfaction and enhance the airport’s competitiveness with dignity and efficiency. In terms of future operations, AOT will continue to manage and develop business in line with sustainable growth strategies as well as prepare the airports under its supervision to enter into the ASEAN Economic Community (AEC) in late 2015. The formation of the AEC will bring new challenges to AOT as it faces up to tougher competition. AOT has therefore set up various groups of the airport management and development sub-committee to supervise all concern operations to enable AOT to be ready for the AEC. In addition, AOT places great importance on corporate governance, advanced information technology systems and support and development of personnel capabilities.It is particularly committed to Corporate Social Responsibility, joining society and communities in organising various activities over the past few years. The CSR activities are aimed at creating good relations and building trust and confidence in operations while addressing concerns for the environment, society and stakeholders in a suitable manner. It is also in line with AOT’s mission to operate the airport business at a superior standard, offering wholehearted services and advanced technology, and demonstrating an awareness of social and community responsibility. AOT fully expects to be a driving force behind the country’s sustainable economic growth. Squadron Leader (Sita Divari) Chairman Annual Report 2013 4 Airports of Thailand Public Company Limited Report of the Audit Committee Dear shareholders, The Audit Committee of AOT has been appointed as per AOT instruction No. 449/2013 dated 4 April 2013, the composition of the Audit Committee has been changed. The new Audit Committee comprised three experts serving as Independent Members, namely Mr. Thanapich Mulapruk as Chairman, Mrs. Chantima Sirisaengtaksin and Police General Krisna Polananta as Members, with the Director of the Audit Office serving as Secretary. The Audit Committee carried out its duties as assigned by AOT’s Board of Directors by adhering to operation manual for state enterprise audit committee of the Ministry of Finance, and the Audit Committee Charter, which is line with the notification of the Stock Exchange of Thailand. The Audit Committee reviewed and ensured that AOT’s management, corporate governance, risk management, internal control, internal audit, financial reports and other operations were in compliance with relevant laws, rules, regulations and requirements in order to be of efficient and effective operations. In fiscal year 2013, the Audit Committee held 13 meetings with senior executives and concerned parties participating in various agendas, and with the auditor without involvement from executive The Audit Committee reports were regularly and continually submitted to AOT’s Board of Directors as follows: - The review of quarterly firancial statements for fiscal year 2013 and the report of monthly operation results determined in cooperation with AOT’s involved executives and the auditor to ensure that essential information of the financial report was correctly prepared and sufficiently disclosed. Also, it must be in line with the generally accepted accounting standards. - A separate meeting on the company’s financial statements and remarks arisen from the audit, etc. was held between the Audit Committee and the auditor without the executives. - To review of mutual transactions which may cause conflicts of interest among the stakeholders and AOT. The result of such review was in accordance with the nature of business. Annual Report 2013 Airports of Thailand Public Company Limited 5 - To review of efficiency and effectiveness of the internal control system and risk management. The Audit Committee also provided suggestions to the Board of Directors and management to improve AOT’s internal control system and risk management to meet acceptable levels. In addition, the Audit Committee examined, suggested and reported the progress on the internal control system as per the Rules of the Auditor General on Internal Control Standards B.E. 2544. - To review of the corporate governance’s operation result for year 2013 to ensure that the rules, regulations, laws, and listed companies’ good corporate governance principles were followed. - To review of the Audit Committee Charter, approval of the Audit Office’s charter and its manual on internal audit, as well as performance evaluation of the director of the Audit Office. - To supervise, suggest and support on the Audit Office’s independent operations. To review of 2013 internal audit results and the follow-up on rectifications as per suggestions in the report to create efficiency and effectiveness. Additionally, the Audit Committee also approved AOT’s 2014 internal audit plan as well as the long term internal audit plan for 2014 - 2016. The Audit Committee strengthened the effectiveness of the internal audit’s operation work such as development of auditing method and auditing training for staff at the Audit Office. - To propose the auditor and the remuneration to the Board of Directors in order for the shareholders’ approval to appoint the Office of the Auditor General of Thailand as the company’s auditor for 2013. The Audit Committee concluded