LAP community Message from the President of the Executive Committee 3 Who we are: Vision, mission and values 5 LAP Partners 6 Our team 8 1 Engine of employment 10 LAP in figures Infrastructure 2001-2014 11 Mission accomplished 12 Investments 15 Transfers to the Peruvian Government 16 2 Economic performance 18 Sustainable development Tourism overview 2014 20 The airline industry 21 Airport development in the region 23 3 A strategic location 25 Optimized Services Our airline operations 27 Our destinations and frequencies 32 4 Development of non-aeronautical businesses 36 Trust and Commitment A highly safe and efficient airport 38 We continue to be the best 39 Caring for the environment 40 Community support 41 5 A greater airport for a greater Peru 42 Message from the President of the Executive Committee Who we are: Vision, mission and values LAP Partners Our team 1 Engine of employment We are proud to have received more than 15.6 million passengers at Jorge Chávez International Airport (JChIA) during 2014; that is, a 5.1% increase from the previous year (14,908,772 passengers in 2013). The continuous increase in passenger traffic in recent years continued to be a considerable challenge for Lima Airport Partners (LAP) in 2014. However, it was possible to stand up to it thanks to LAP’s committed and qualified team, especially in what concerns JChIA’s expansion project. LAP’s achievements during 2014 include the construction of the airport’s 5 km perimeter fence, perimeter road, and lighting system. LAP also tendered the design, architecture, and engineering of the new airport to Arcadis and its contractor companies. The total investment amounts to $17 million. The infrastructure works will cover most of the 7 million square meters assigned to the expansion project. Arcadis is currently implementing a design approach based on a modular concept, the need to ensure infrastructure sustainability and efficient construction and maintenance costs, and state-of-the art airport technology. It is important to recall that the airport’s expansion plans include a second runway, additional aircraft parking space and taxiways, a new terminal, and more access ways to the airport, among other facilities. Moreover, LAP introduced improvements during 2014 to increase the airport’s infrastructure capacity at the three initial passenger contact points: verification of payment of the Unified Tariff for Airport USE (TUUA), security control-departures, and migration modules. Additionally, LAP initiated the construction and remodeling of aircraft parking positions. These improvements will significantly enhance JChIA’s capacity to meet the increasing passenger traffic. It is also important to mention that, for the sixth consecutive year, JChIA won the award for Best Airport in South America granted by Skytrax Research, a market consultant specialized in airport-related issues. JChIA also received the award for Best Airport Staff in South America for the fourth consecutive year. Both awards are a source of pride for LAP and its staff. As part of its commitment to preserving the environment and contributing to sustainable development, LAP certified internationally the measurement of its carbon footprint for 2013. We are proud that JChIA is the first airport in the country, and one of the first in the region, to calculate this indicator. 3 At the same time, LAP will face important challenges in 2015. Notably, the conceptual design of the future airport will be completed by the second quarter of the year. JChIA’s enhanced infrastructure will increase its capacity to serve more passengers (expected to reach 30 million by the end of the concession contract) and airlines; and improve its connectivity to other parts of the country. In this way, we aim to meet the expectations of our users and passengers and create value in a sustainable manner for the benefit of the airport community and the country in general. Finally, I wish to thank LAP’s collaborators and the members of the airport community for their efforts and commitment. It is thanks to them that we can continue to reinforce JChIA’s position as South America’s leading airport. Jorge Von Wedemeyer President of the Executive Committee 4 Message from the President of the Executive Committee Who we are: Vision, mission and values LAP Partners Our team 1 Engine of employment VISION LAP aspires to be: a world reference in innovation and service quality, focused on people and the environment; the company responsible for creating Latin America’s first and last impression to the rest of the world; an inspiring and successful firm offering excellent job opportunities. MISSION As operator of JChIA, LAP seeks to offer passengers and airlines a memorable experience.. We manage Jorge Chávez International Airport with a view to offer passengers and airlines a memorable experience and position Peru as the best connection point in Latin America. VALUES Unity Communication Courage Empathy Impact PRINCIPLES Service Quality Comprehensive Security Innovation and Efficiency Social and Environmental Responsibility Financial Sustainability 5 Message from the President of the Executive Committee Who we are: Vision, mission and values LAP Partners Our team 1 Engine of employment Lima Airport Partners S.R.L. is a company formed by the consortium that won the international public tender for the concession to operate JChIA, in accordance with the agreement signed with the Peruvian Government. The consortium was formed by German airport operator Fraport AG Frankfurt Airport Services Worldwide (known at the time as Flughafen Frankfurt/Main AG) with a 42.75% stake; Bechtel Enterprises Services Ltd. (known at the time as Bechtel Enterprises International, Ltd.), a member of the Bechtel conglomerate, a U.S. business group originally dedicated to construction, with the same stake; and Cosapi S.A., a Peruvian construction company, with a 14.5% stake. 2000 Concession awarded to the Frankfurt-Bechtel-Cosapi consortium on November 15, 2000. 2001 The concession contract between the new operator and the Peruvian Government was signed on February 14, 2001. In December 2001, Bechtel Enterprises Services Ltd. transferred its stake in LAP to Alterra Lima Holdings Ltd., a subsidiary of Alterra-Partners, an airport-operating company whose shareholders were Bechtel and Singapore Changi Airport Enterprise Pte. Ltd. (SCAE), the operator of Singapore Airport. 2003 In September 2003, Cosapi sold its stake in LAP to Alterra Lima Holdings Ltd. From that moment, the partnership structure of LAP was the following: Alterra Lima Holdings Ltd. 57.25% and Fraport AG Frankfurt Airport Services Worldwide 42.75%. 2007 In August 2007, Fraport AG acquired Alterra Lima Holdings and temporarily became the sole owner of LAP. 2008 In May 2008, the International Finance Corporation (IFC), a member of the World Bank Group, and the Fund for Investment in Infrastructure, Public Services and Natural Resources, managed by AC Capitales SAFI S.A., became LAP partners. Since that date, the partnership structure of LAP is as follows: Fraport AG 70.01%; IFC 19.99%; and the Fund for Investment in Infrastructure, Public Services and Natural Resources 10%. 6 Leader Fraport AG is one of the leading companies in the global airport industry. At Frankfurt Airport, it operates one of the most important air transport hubs; and, as a provider of integrated services, it has a presence in many countries, including Russia, Egypt, Bulgaria, Turkey, China, and India. 30 years In compliance with the terms of the concession agreement, the Peruvian Government has granted LAP a 30-year concession for the construction, improvement, conservation, and exploitation of JChIA. 7 Message from the President of the Executive Committee Who we are: Vision, mission, and values LAP Partners Our team 1 Engine of employment JUAN JOSÉ SALMÓN Chief Executive Officer SABINE TRENK Chief Operating and Commercial Officer MILAGROS NORIEGA Chief Administration and Financial Officer BABETT STAPEL Chief Organization and Communications Officer WINFRIED GLÄSER Chief Infrastructure Officer * In service as of December 31, 2014. Mr. Gustavo Morales was Chief Commercial Officer until November 2014. Ms. Sabine Trenk then took over as both Chief Commercial and Operating Officer. 8 Message from the President of the Executive Committee Who we are: Vision, mission, and values LAP Partners Our team 1 Engine of employment General Organizational Chart EXECUTIVE BOARD Internal Auditing Chief Executive Office Legal Department Concession Compliance Institutional Relations OPERATIONS AND COMMERCIAL ADMINISTRATION AND FINANCE ORGANIZATION AND COMMUNICATION INFRAESTRCUTURA Security Management Financial Planning Human Resources Construction Airside & Terminal Controlling & Accounting Management Systems Maintenance Management Commercial Information & Telecommunications Corporate Communication Airport Master Planning Protocol Investor Relationship and Project Financing Design Purchasing Project Management In service as of December 31, 2014. Mr. Gustavo Morales was Chief Commercial Officer until November 2014. Ms. Sabine Trenk then took over as both Chief Commercial and Operating Officer. 9 Message from the President of the Executive Committee Who we are: Vision, mission, and values LAP Partners Our team 1 Engine of employment Number of employees YEAR LAP Outsourcing Total 2001 218 435 653 2002 276 461 737 2003 294 379 673 2004 285 371 656 2005 319 366 685 2006 330 377 707 2007 449 352 801 2008 473 373 846 2009 483 437 920 2010 533 441 974 2011