Annual and Sustainability Report 2020 We link Norway together – and Norway to the world 2 AVINOR AS ÅRS- OG SAMFUNNSANSVARSRAPPORT 2019 3 ÅRET 2019 20,000,00054 000 000 PASSENGERS PASSASJERER -63 ↑ 0,6PER PROSENT CENT FROM FRA 2019 2018 428,303677 324 84 PROSENT DEPARTURES AND ARRIVALS AVGANGER OG LANDINGER PUNKTLIGHET -36.7↓ 1,2 PER PROSENT CENT FROM FRA 2018 2019 Avinors mål er 88 prosent punktlighet i snitt for alle lufthavner. Dårlig punktlighet skyldes i stor grad værforhold, trafikale utfordringer i Europa og interne utfordringer hos operatørene på Avinors nettverk. 32,858012 PERMANENTFAST ANSATTE EMPLOYEES 3,012 IN 2019 7836,447652 OVERFLIGHTSOVERFLYGNINGER ↓-53.7 3,2 PER PROSENT CENT FROM FRA 2018 2019 2 AVINOR AS ÅRS- OG SAMFUNNSANSVARSRAPPORT 2019 3 ÅRET 20202019 54 000 000 PASSASJERER ↑ 0,6 PROSENT FRA 2018 677 324 8492 PROSENTPER CENT* AVGANGER OG LANDINGER PUNCTUALITYPUNKTLIGHET ↓ 1,2 PROSENT FRA 2018 84Avinors PER mål erCENT 88 prosent IN punktlighet 2019 i snitt for alle lufthavner. Dårlig punktlighet skyldes i stor grad værforhold, trafikale utfordringer i Europa og interne *utfordringer Avinor’s target hos is operatørene 88 per cent påaverage Avinors punctuality nettverk. for all its airports. 32,858012 PERMANENTFAST ANSATTE EMPLOYEES 3,012 IN 2019 78 652 OVERFLYGNINGER ↓ 3,2 PROSENT FRA 2018 4 AVINOR AS Our results Operating income Operating expenses Profit/loss after tax 8 183 6 333 -724 NOK MILLIONS NOK MILLIONS NOK MILLIONS NUMBERNUMBER OF OF AIR AIR PASSENGERSPASSENGERS PASSENGERS NUMBERNUMBER OF OF AIRCRAFT AIRCRAFT MOVEMENTS MOVEMENTS MOVEMENTS FiguresFigures in in 1 1 000 000 FiguresFigures in in 1 1 000 000 6060 000 000 800800 5050 000 000 700700 4040 000 000 3030 000 000 600600 2020 000 000 500500 1010 000 000 00 400400 20162016 20172017 20182018 20192019 20202020 20162016 20172017 20182018 20192019 20202020 NOK MILLIONS 2020 2019 2018 2017 2016 Operating income airport operations 3,658 10,357 10,303 10,162 9,675 Operating income air navigation services 1,460 2,100 2,107 2,085 1,991 Total group operating income 8,183 11,785 11,724 11,526 10,788 EBITDA Group 1) 1,850 3,634 4,201 3,126 3,521 Profit/loss after tax -724 702 1,170 499 1,029 Number of air passengers (figures shown in thousands) 20,000 54,099 54,387 52,885 50,803 Number of aircraft movements (figures shown in thousands) 428 677 690 697 704 1) The Group uses EBITDA as an alternative performance measure (APM). This calculation is directly reconciled in the profit and loss account. EBITDA is used because it is an approximate calculation of free cash flow from operations. Contents 06 About Avinor 08 Message from the CEO 10 Corporate governance and company management 15 Annual Report of the Board of Directors 2020 22 Sustainable value creation 25 Avinor must ensure good aviation services for the whole of Norway 35 Be a driving force behind efforts relating to the challenges faced by aviation in the field of climate and the environment 46 Key figures climate and environment 2016–2020 49 Avinor must be a professional and attractive employer 55 Avinor must ensure sustainable finances and responsible business conduct 58 Sustainability goals and results 2020 68 Group management team 69 Board of Directors 71 Financial statements with notes 72 Income statement 73 Comprehensive earnings 74 Balance sheet 76 Statement of changes in equity 78 Cash flow 80 Notes to the financial statements 134 Declaration by the Board of Directors and CEO 135 Auditor’s report Avinor’s annual and sustainability report for 2020 is the Group’s joint report on its operations, finances, and sustainability. This is the fifth time that the Group has chosen to present a combined report, previously published under the title of Annual and Corporate Social Responsibility Report. Work around sustainability is an integral element in Avinor’s strategic planning and in the management of the Group. Avinor’s work on sustainability is based on expectations set for its activities in the Avinor Articles of Association, guidelines issued by the government as a result of their direct ownership of the Group (known as Eierskapsmeldingen) and the Norwegian Accounting Act. Avinor takes the OECD’s guidelines for responsible business as the basis for its sustainability efforts, and it signed up to the UN Global Compact in 2014. Avinor’s efforts cover areas such as human rights, employee rights and social conditions, the external environment, and combatting corruption. Avinor reports on its sustainability work in accordance with the principles of the Global Reporting Initiative (Standards/Core). About Avinor Avinor’s social obligations relate to owning, operating, and developing a national network of airports for the civilian aviation sector and a joint air navigation service for the civilian and military sectors. Operations must be carried out in a safe, efficient, and sustainable manner and ensure good accessibility for all groups of travellers. ANNUAL REPORT 2020 7 Avinor owns 45 airports, including the subsidiary Svalbard Th e number of air transport movements in the period fell by Lufthavn AS and Værøy Heliport. Haugesund Airport is leased 36 per cent compared with the corresponding period in 2019. to an external operator and Fagernes Airport is due to be sold Domestic air transport movements fell by 28 per cent, while in 2021. Avinor is usually self-fi nanced through traffi c revenues international air transport movements fell by 62 per cent. from airlines, revenues from commercial tenants, and direct sales to passengers. A smaller component of the Group’s revenue stems Th e changes in passenger numbers and air transport movements from assignments for other organisations, such as the Norwegian refl ect the impact of the COVID-19 pandemic. Armed Forces. Airport operations are run as a single fi nancial unit, whereby the large fi nancially profi table airports fi nance the rest of Th e number of overfl ights during 2020 totalled 36,447, a decrease the airport network. Commercial revenues accounted for around of 53.7 per cent compared with 2019. 54 per cent of operating revenues in 2019 (the last normal year of operations), while traffi c revenues from airlines account for roughly Th e shares in Avinor AS are wholly owned by the Norwegian 46 per cent. In 2020, loss of revenues as a result of the pandemic has state as represented by the Ministry of Transport necessitated the injection of capital from the Group’s owner, the and Communications. Th e Ministry of Transport and Norwegian Ministry of Transport and Communications. Communications manages the corporate governance of the Norwegian state, determines Avinor’s fi nancial framework, and Avinor Flysikring AS is a subsidiary of the Group. Air navigation regulates aviation fees. Th e ministry also lays down the Civil services are funded through traffi c revenues from the airlines Aviation Authority’s regulations that have consequences for for en-route navigation services, as well as revenue from the Avinor’s operations. Avinor’s head offi ce is located in Oslo. operation of tower and approach services from Avinor’s airport operations. Avinor Flysikring AS (Avinor ANS) provides services including en-route navigation services, approach control services, and control tower services, as well as fl ight navigation services and services relating to technical operations. Air navigation services and airport operations are closely integrated and AVINOR’S AIRPORTS mutually dependent on each other in their fulfi lment of Avinor’s social obligations. Avinor’s airports vary by size and traffi c volume. Oslo Airport is by far the largest and ordinarily accounts for Avinor co-operates with the Norwegian Armed Forces at eleven more than half of Norway’s air traffi c and just over 70 per cent airports, nine of which are Avinor airports (Oslo, Stavanger, of the country’s total international traffi c. Bergen, Stavanger, Bergen, Trondheim, Bodø, Andøya, Harstad/Narvik, Bardufoss, and Trondheim also usually have a sizeable proportion of direct international traffi c. Some other airports also have international Lakselv). In addition, Ørland airbase has only military traffi c, and traffi c: Kristiansand, Ålesund, Tromsø, Bodø, Harstad/Narvik, Rygge airport has only military activity and some general aviation. and Molde, in addition to some international charter traffi c Co-operation with the Norwegian Armed Forces is expected to be at other airports. Haugesund Airport, which is leased to extended to include several more airports in the future. Lufthavndrift AS as of 2019, also usually has international traffi c. A total of 20 million passengers travelled to, from, or via Avinor’s Oslo Airport is the only Norwegian airport to have two parallel airports in 2020, which is a decrease of 63 per cent compared to runways. Stavanger Airport has a secondary runway used during the previous year. certain wind conditions. Norway’s primary airport, Oslo Airport, had 9 million passengers Oslo Airport’s runways are 3600 metres long. At the other large in 2020, which is a decrease of 68 per cent compared to 2019. Oslo airports, the runways are 2,600–3,000 metres long, which means Airport is the hub of Norwegian aviation and a transit airport for they can be used by larger jet aircraft. 27 of Avinor’s airports traffi c between Norway and the rest of the world. Th e profi t gene- have short runways of between 800 and 1200 metres. Th ese are rated by Oslo Airport is crucial for the fi nancing of the network of used by smaller aircraft types such as the Bombardier Dash 8, airports spread across Norway. air ambulances, and private aircraft. Th ese airports are of huge importance in ensuring the habitation and economies of remote Th ere were a total of 428,303 movements (take-off s and landings) areas.