HOW TO BREEZE THROUGH AN IMMERSIVE THE AIRPORT? AIRPORT EXPERIENCE MALAYSIA AIRPORTS HOLDINGS BERHAD MALAYSIA (487092-W) ANNUAL REPORT 2016 REPORT ANNUAL ANNUAL REPORT 2016 HOW TO BREEZE THROUGH AN IMMERSIVE THE AIRPORT? Boarding Pass Security Boarding AIRPORT EXPERIENCE Check-in Security Immigration Customs Screening Gate AT HOME 01 02 03 04 Opt for online or Weigh both your Bring all your Pack all Liquid, Aerosols mobile check-in and hand travelling and Gels (LAGs) in clear check-in to avoid luggage to avoid documents sealed plastic bags. queuing excess baggage Each container must charges not exceed 100ml and maximum capacity in a bag is 1 litre RECOMMENDED TIME TO BE AT THE AIRPORT FOR DEPARTURE 2-3H 1-2H 40M* international domestic at boarding flights flights gate * Depending on airlines AT THE AIRPORT Go to Check-in Ensure passport, CHECK-IN counter or kiosk I/C and boarding to check-in pass is with you Keep passport, I/C and boarding pass in BOARDING PASS a separate bag to ease boarding pass SECURITY security process Check your lane and take your passport IMMIGRATION out of its sleeve Place luggage on the conveyor belt. CUSTOMS You are NOT required to remove your jacket, belt or empty your pockets at this point SECURITY Remove jacket, belt, wallet and SCREENING empty pockets for security screening Get your passport, I/C and boarding BOARDING GATE pass ready Share your joyful journey at our airports and tag us ANNUAL REPORT 2016 Malaysia Airports @MY_Airports malaysiaairports 1992-2017 AN IMMERSIVE AIRPORT EXPERIENCE We take seriously our role as one of the world’s leading airport operators; responsible for the smooth-running of airports under our management - from busy international hubs to small rural STOLports. As we celebrate our Silver Jubilee, we are proud of our achievements in creating a business that is efficient, sustainable and ethical, and renew our commitment to improving the quality of our services and creating a truly immersive airport experience. WHAT IS i-MAHB? i-MAHB combines image recognition and Search for i-MAHB Click the app Once installed, Click the start button Look for the above You may click on the Augmented Reality (AR) technology to app from Apple App and install. click open to launch from the i-MAHB icon on the front cover interactive button to Store or Google Play (Please check your the Augmented app to launch the and scan the Annual explore additional deliver messages that go beyond print. with your smartphone. device compatibility Reality (AR) app. AR camera. Report cover image to contents. before installing). enjoy interactive AR i-MAHB this page to find out how you can content. get the most out of this amazing technology. 1992-2017 Take advantage of the seamless airport experience with KLIA Premier Access and sail through the journey when you purchase the Priority Access Pass today! Standard Rate Premium Rate RM68.00 nett per person RM188.00 nett per person RM136.00 nett per couple RM300.00 nett per couple RM206.00 nett per family* RM390.00 nett per family* * Two adults and two children below 12 years old * Two adults and two children below 12 years old Rates include lounge facility, refreshment, Rates include meet and greet at kerbside, and dedicated priority access buggy service, lounge facility, refreshment include wine and beer, escort service and dedicated priority access AN IMMERSIVE AIRPORT EXPERIENCE All rates inclusive 6% GST We take seriously our role as one of the world’s leading airport operators; responsible for the smooth-running of airports under our management - from busy international hubs to small rural STOLports. Open Daily: Monday – Sunday | Operation Hours: 7am-11pm Our Lounge is located on Level 5, next to International Departure Gate A & B As we celebrate our Silver Jubilee, we are proud of our achievements in creating a Reservation: To pre-book KLIA Premier Access Service, business that is efficient, sustainable and ethical, and renew our commitment to improving please visit www.samasamahotels.com/kliapremieraccess the quality of our services and creating a truly immersive airport experience. KLIA Premier Access KL International Airport, Level 5, Main Terminal Building, 64000, KLIA, Sepang, Selangor, Malaysia WHAT IS i-MAHB? Tel: +603 877 64606 Email: [email protected] i-MAHB combines image recognition and Search for i-MAHB Click the app Once installed, Click the start button Look for the above You may click on the Augmented Reality (AR) technology to app from Apple App and install. click open to launch from the i-MAHB icon on the front cover interactive button to Managed by Store or Google Play (Please check your the Augmented app to launch the and scan the Annual explore additional deliver messages that go beyond print. with your smartphone. device compatibility Reality (AR) app. AR camera. Report cover image to contents. before installing). enjoy interactive AR i-MAHB this page to find out how you can content. get the most out of this amazing technology. Owned by KL Airport Sdn Bhd (330863-D) ANNUAL REPORT 2016 1 TABLE OF CONTENTS PREFACE LEADERSHIP International Passenger Movements 2016 326 01 04 by Airlines at KL International Airport • Our Vision Board of Directors’ Profile 80 Traffic 2016 Istanbul Sabiha 327 Gokcen International Airport • Our Mission Group Senior Management Profile 96 International Passenger Movements 2016 328 Malaysia Airports Today 3 by Sectors at Istanbul Sabiha Gokcen Key Milestones 4 International Airport Media Highlights 6 CORPORATE FRAMEWORK Top 5 Airlines 2016 by International Passengers 329 at Istanbul Sabiha Gokcen International Airport Letter from the Chairman 8 05 International Passenger Movements 2016 by 330 Notice of the 18th Annual General Meeting 10 Corporate Profile 112 Sectors at Other International Airports in Malaysia Statement Accompanying Notice of the 16 Corporate Information 115 Commercial Aircraft Movements 2016 331 18th Annual General Meeting Group Corporate Structure 116 Malaysia Operations AGM Administrative Details 17 Group Organisational Structure 120 Commercial Aircraft Movements 2007 - 2016 334 Calendar of Events 2016 122 Malaysia Operations 2016 Awards 128 All Aircraft Movements 2007 - 2016 336 Malaysia Operations PERFORMANCE REVIEW Past Awards & Accolades 130 Cargo Movements 2016 Malaysia Operations 337 02 Airports Managed by Malaysia Airports 132 Five-Year Financial Highlights 20 Cargo Movements 2007 - 2016 Malaysia Operations 340 Group Five-Year Summary 21 International Cargo Movements 2016 by 342 Sectors at KL International Airport Group Quarterly Performance 23 GOVERNANCE International Cargo Movements 2016 by Sectors 347 Key Financial Highlights 24 06 at Other International Airports in Malaysia Group Segmental Analysis 26 Statement on Corporate Governance 134 International Cargo Movements 2016 by Airlines 348 Statement of Income Distribution 27 Additional Compliance Information 163 at KL International Airport Statement of Financial Position 28 Statement on Risk Management and Internal Control 164 Mail Movements 2016 Malaysia Operations 349 Share Price, Volume Traded & Market Capitalisation 29 Board Audit Committee Report 169 Mail Movements 2007 - 2016 Malaysia Operations 352 Statement of Workforce 30 International Mail Movements 2016 by Sectors 354 Group Financial Performance 31 at KL International Airport FINANCIAL Airport Performance Benchmark 36 Movements at MAHB STOLports 358 07 2015/2016 in Sabah & Sarawak Dividend Policy 39 Financial Statements 172 Airlines Operating at 2016 KL International Airport 359 Financial Calendar 41 Definitions 360 Investor Relations 42 Statement of Shareholdings 361 AIRPORTS STATISTICS Information for Shareholders and Investors 365 08 List of Properties 366 BUSINESS REVIEW 03 Total MAHB Group Traffic 2016 314 Group Corporate Directory 368 Traffic 2016 Malaysia Operations 315 Airport Directory 369 Chairman’s Statement 44 Passenger Movements 2016 316 Map to the AGM Venue 370 Management Discussion and Analysis 52 Malaysia Operations Subsidiaries’ Performance 72 Passenger Movements 2007 - 2016 319 Sustainability at Malaysia Airports 76 Malaysia Operations International Passenger Movements 2016 321 by Sectors at KL International Airport OUR VISION TO BE THE GLOBAL LEADER IN CREATING AIRPORT CITIES OUR MISSION TOGETHER WE CREATE JOYFUL EXPERIENCES BY CONNECTING PEOPLE AND BUSINESSES ANNUAL REPORT 2016 3 MALAYSIA AIRPORTS TODAY OVERSEAS AIRPORT INVESTMENTS 2 TURKEY Istanbul Sabiha Gokcen International Airport INDIA Rajiv Gandhi International Airport OPERATING INTERNATIONAL AIRPORTS 5 16 Domestic Airports 18 STOLports in Malaysia A DYNAMIC TEAM OF NEARLY SERVING 11,000 > 60 AIRLINES employees Listed on the Main Market of Bursa Malaysia since 1999 with market capitalisation of TOTAL EQUITY RM12.0 BILLION RM8.7BILLION as at 13 April 2017 as at 31 December 2016 MALAYSIA AIRPORTS HOLDINGS BERHAD 4 KEY MILESTONES MALAYSIA ESTABLISHMENT MALAYSIA AIRPORTS OF MALAYSIA listed on AIRPORTS AIRPORTS KLSE Main Board is Khazanah’s (now Main Market of Top 20 GLC Bursa Malaysia) TOP 20 1998 2004 1992 1999 2006 OPENING 50% MINISTRY OF OF KLIA FINANCE (INC.) stake transferred to Khazanah Nasional ANNUAL REPORT 2016 5 KEY MILESTONES GRADUATION from GLC Transformation 2013 Programme LAUNCHING OF SAMA-SAMA HOTEL OPENING OF MITSUI OUTLET PARK KLIA 2010 2014 2016 2013 2015 LAUNCH OF RUNWAY OPENING OF TO SUCCESS 2020 klia2 klia2 GROUND LAUNCH OF BREAKING KLIA AEROPOLIS CEREMONY FULL ACQUISITION of Istanbul Sabiha Gokcen International Airport in Turkey GROUND BREAKING of Mitsui