EFFICIENT COMPETITIVE FORWARD-THINKING ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 2013 ANNUAL REPORT 2013 HIGHLIGHTS ADM +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ FINANCIAL RETROSPECTIVE OPERATIONS (IN THOUSANDS OF DOLLARS) 2011-2013 2013 2012 2011 20101 2009 Passenger traffic Cargo volume (metric tons) Aircraft movements 2011 13,668,829 2011 189,318 2011 253,298 Revenues $ 446,584 $ 435,461 $ 426,968 $ 389,314 $ 350,968 2012 13,809,820 2012 185,028 2012 243,436 Excess (deficiency) 2013 14,095,272 2013 177,165 2013 234,638 of revenues over expenses 13,625 6,941 5,423 (9,040) (8,989) ++++++++++++++++++++++++++++++++++++ +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ EBITDA 197,835 189,603 183,978 2 163,974 2 151,466 Investments $ 177,353 $ 194,722 $ 113,685 $ 64,601 $ 186,414 REAL ESTATE AND COMMERCIAL REAL ESTATE DEVELOPMENT DEVELOPMENT 1. The Corporation adopted International Financial Reporting Standards (IFRS) as of its fiscal year beginning January 1, 2010. 2013 2011-2013 2. Excluding the write-down in 2008 (or gain in 2010 and 2011) on investments in floating rate notes (originally ABCP). New leases Investments generated Jobs created (In square metres) (In millions of dollars) Estimates Estimates Land 380,480 2011 36.0 2011 105 Buildings 16,356 2012 1.8 2012 64 and space 2013 129.7 2013 298 +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ REVENUE SOURCES TYPES OF EXPENSES (IN MILLIONS OF DOLLARS) (IN MILLIONS OF DOLLARS) $97. 8 OPERATING, GENERAL AND $89.3 $101.5 ADMINISTRATIVE FINANCIAL DEPRECIATION EXPENSES EXPENSES 23.0% 22.2% 20.2% 2013 2013 $144.1 $136.8 $40.5 $165.7 AIRPORT NON $66.5 $45.6 PAYMENTS AERONAUTICAL IMPROVEMENT AERONAUTICAL SALARIES AND TRANSPORT IN LIEU OF ACTIVITIES FEES REVENUES BENEFITS CANADA RENT MUNICIPAL TAXES 3 7. 1% 32.3% 30.6% 15.1% 10.3% 9.2% AÉROPORTS Consolidated financial statements as at December 31, 2013 DE MONTRÉAL’S are published under separate cover and are available on MISSION IS request, at admtl.com or by scanning this QR code with your smartphone THREEFOLD 01 ++++++++++++++++++++++++++++++ ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Provide quality airport services Aéroports de Montréal (ADM), which marked its 20th anniversary in 2012, is that are safe, secure, efficient and a not-for-profit corporation without share capital and is responsible for the consistent with the specific needs management, operation and development of the Montréal-Pierre Elliott Trudeau of the community. and Montréal-Mirabel international airports under a lease entered into with Transport Canada in 1992 and that expires in 2072. Aéroports de Montréal is committed to succeeding in each of its sectors — airport, 02 aeronautical, real estate and commercial services — and to developing its airport ++++++++++++++++++++++++++++++ complexes to their full potential. From this perspective, Montréal-Trudeau acts as a hub for domestic, transborder and international passenger traffic, while Montréal- Foster economic development Mirabel continues to develop as an industrial and all-cargo airport. in the Greater Montréal Area, especially through the The Montréal-Trudeau and Montréal-Mirabel airports are major centres of economic development of facilities for activity and help drive the development of Greater Montréal. 28 passenger carriers which it is responsible. and 23 all-cargo companies connect Montréal to many airports around the world. In 2013, about 14 million passengers and 177,165 metric tons of cargo transited through the airport facilities of Montréal-Trudeau and Montréal-Mirabel. Some 250 businesses active on the airport sites generate a total of 60,000 jobs (including 31,600 direct 03 jobs) and added value of $5.5 billion a year. ++++++++++++++++++++++++++++++ Coexist in harmony with the surrounding environment, particularly in matters of environmental protection. EFFICIENT OF TABLE CORPORATE CONTENTS PROFILE 01 CORPORATE PROFILE 02 MESSAGE FROM MANAGEMENT 06 2013 HIGHLIGHTS 08 REVIEW OF ACTIVITIES 18 ENVIRONMENTAL AND SOCIAL RESPONSIBILITY REPORT 30 MANAGEMENT’S DISCUSSION AND ANALYSIS 34 GOVERNANCE 39 FIVE-YEAR STRATEGIC PLAN 45 CARRIERS AND DESTINATIONS MESSAGE FROM MANAGEMENT Economic Conditions Moreover, customer satisfaction ratings, as The U.S. economy recovered some traction measured by our quarterly surveys, remained in 2013 and seems to be on the road to very high, despite the major irritant that is recovery, although significant risks remain for the regrettable state of road access via the the global economy. In Canada, growth has Dorval Interchange and Highway 20. The remained fragile, with the Québec economy measures taken to alleviate the impacts of continuing to underperform and Montréal our own work, both inside and adjacent to coping with various structural issues. Despite the air terminal, have proven successful. this mixed picture, Montréal-Trudeau air Certain initiatives, including the introduction traffic rose 2.1% in 2013, surpassing 14 million of automated passport control kiosks at U.S. annual passengers enplaned/deplaned for customs and the launch of SecurXpress to the first time. The U.S. sector surprised on the facilitate passage at the domestic/international upside with a 4.7% increase. security screening checkpoint, have positively influenced passenger perceptions. Financial and Operating Results We are therefore satisfied with this performance Thanks to this better-than-expected growth and would like to thank the entire ADM team. in traffic and to proactive financial and Once again, they have proven themselves to operational management, our 2013 financial be effective and innovative. results were generally solid. Investments + Revenues totalled $446.6 million, and Financing 2.6% higher than in 2012, and our In 2013, the Corporation’s investments totalled main business activities continued $177.4 million, compared to $194.7 million in to post strong performances. 2012. Work consisted mainly of expanding the west apron and the international jetty, + At $197.8 million, EBITDA (excess of redeveloping the domestic and international revenues over expenses before financial departures hall, including unifying the expenses, taxes and depreciation), which domestic and international checkpoints, is considered the best indicator of our and developing or reorganizing commercial financial performance, rose 4.3%, areas inside the air terminal. mainly due to our cost-cutting efforts. As a percentage of revenues, EBITDA Our capital spending will ramp up in 2014 as was 44.3%. we will begin foundation and structural work for the international jetty extension. The + The excess of revenues over expenses current development cycle at the Montréal- stood at $13.6 million, compared to Trudeau air terminal includes plans for six $6.9 million in 2012. new boarding gates for wide-body aircraft, in addition to expanding and redeveloping MESSAGE FROM MANAGEMENT +++++++++++++++++++++++++++++++++++++++++++++++++++++ Réal Raymond James C. Cherry +++++++++++++++++ Chairman of the Board President and Chief Executive Officer 02 03 MESSAGE FROM MANAGEMENT the international arrivals area and upgrading Additional Objectives In addition to aerospace activity, Montréal- Air Services connection facilities. The opening of the new We have decided to raise the bar and, Mirabel welcomes air cargo operations as Aéroports de Montréal would like to reiterate section of the international jetty is scheduled without compromising our other priorities, well as commercial, recreational and tourist that it does its utmost to offer the most for September 2016. to focus on the following three additional activities. A total of 4,000 people work comprehensive air services to the Montréal corporate objectives. directly at the Montréal-Mirabel site, and community. While the airlines decide whether From 2014 to 2018, our investments will hundreds of new, quality jobs will further to offer new flights based essentially on amount to approximately $820 million and + Grow the share of our non-air revenue, grow the workforce in the coming years. supply and demand, we can have a significant include many maintenance and improvement particularly by developing new influence by ensuring that aeronautical fees projects at both Montréal-Trudeau and commercial and parking areas. The repurposing of certain facilities is remain competitive, by constantly improving Montréal-Mirabel. Note that our investments ongoing. The apron is the site of a major our facilities and level of customer service, are financed using cash flows, including airport + Increase the current productivity of our motor sports complex, the refurbished by providing financial incentives and by improvement fees, and long-term debt. teams, particularly through the use of administrative building is fully leased, the continuing to call for new services in concert more efficient processes. hotel will reopen in 2015, and a recreational with our partners. This is exactly what we do. Well-Positioned for complex will soon be built on adjacent