Annual Report • Feb 26, 2015
Annual Report
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Pursuant to section 149(2) of the Danish Financial Statements Act, the Group Annual Report is an extract of Copenhagen Airports' complete Annual Report. The complete Annual Report, including the financial statements of the Parent Company (pages 140-151), Copenhagen Airports A/S and the statutory corporate governance statement can be downloaded at www.cph.dk/en. Following adoption at the Annual General Meeting, the complete annual report will also be available from the Danish Business Authority (Erhvervsstyrelsen).
The allocation of the profit for the year, including proposed dividend, is described on page 62.
The Annual General Meeting will be held on 14 April 2015 at 3.00 pm at the Vilhelm Lauritzen Terminal.
This Annual Report includes forward-looking statements as described in the US Private Securities Litigation Reform Act of 1995 and similar acts of other jurisdictions on forwardlooking statements, including in particular statements concerning future revenues, operating profits, business expansion and investments. Such statements are subject to risks and uncertainties as various factors, many of which are beyond CPH's control, may cause actual results and performance to differ materially from the forecasts made in this Annual Report. Such factors include general economic and business conditions, changes in exchange rates, the demand for CPH's services, competitive factors within the aviation industry, operational problems in one or more of the Group's businesses, and uncertainties relating to acquisitions and divestments. See also "Risk management and risks" on pages 46-49.
Lufthavnsboulevarden 6 DK-2770 Kastrup Denmark Tel: +45 3231 3231 Fax: +45 3231 3132 E-mail: [email protected] Web: www.cph.dk/en Company reg. (CVR) no: 14 70 72 04 Founded on: 19 September 1990 Municipality of registered office: Taarnby
Copenhagen Airports, CPH, the Group and the Company are used synonymously about Copenhagen Airports A/S consolidated with its subsidiaries and associates.
The airport at Copenhagen, Kastrup, owned by Copenhagen Airports A/S.
The airport at Roskilde owned by Copenhagen Airports A/S.
| Management's review | |
|---|---|
| Letter from the Board of Directors | 4 |
| Reading instructions | 5 |
| Profile | 6 |
| Letter from the Executive Management | 7 |
| Highlights of 2014 | 12 |
| Group financial highlights and key ratios | 16 |
| Financial review | 19 |
| Segmental performance | 24 |
| Non-financial review | 33 |
| Risk management and risks | 46 |
| Shareholder information | 50 |
| Reference to report on corporate governance | 53 |
| Board of Directors | 55 |
| Executive Management | 57 |
| Consolidated financial and non-financial statements | 58 |
| Consolidated financial statements | 60 |
| Consolidated non-financial statements | 100 |
| Management's statement and Auditors' Reports | 133 |
| Management's statement | 134 |
| Independent Auditors' Report | 136 |
| Independent Auditors' Report on non-financial information | 138 |
The management's review, as defined by the Danish Financial Statements Act, is included on pages 4-57. This Annual Report is published both in English and Danish. In the event of any discrepancies, the Danish version shall prevail.
In 2014, Copenhagen Airport had one of the highest growth rates achieved by a major European airport. A 6.5% increase secured a passenger record for the fourth consecutive year with 25.6 million passengers travelling through the airport. Revenue increased by 6.1% and EBITDA excluding one-off items by 7.3%, which was a strong performance, in spite of continued challenging economic conditions. The growth was due to the successful execution of our strategy, as well as Copenhagen Airport being a vital part of a growing region.
A record-high number of tourists visited Copenhagen in 2014, and the greater Copenhagen area is attracting an increased number of international business investments. The growth creates jobs and has a positive economic impact on Denmark and southern Sweden. A broad cooperation, in which CPH plays a key role, between the region's many stakeholders has made this achievement possible.
Therefore, it was a logical step for CPH in January 2014 to present the long-term growth plan, Expanding CPH, hand in hand with the region's most important stakeholders. The growth plan forms an integrated part of the World Class Hub strategy, addressing the capacity expansions needed in the future to reach 40 million passengers annually. As an airport, we are aware that we cannot drive growth on our own; it has to be done in collaboration with many different stakeholders such as airlines, the political establishment, tourists organisations, unions and businesses from the entire region. It has been encouraging to experience the strong support for our vision of the future development of the airport.
In 2014, we signed a new four-year charges agreement with the airlines. The agreement fulfills CPH's two main objectives for the charges; to maintain our strong competitive position among European hub airports and to ensure that the necessary level of investments in the airport can be sustained. The agreement will provide a stable earnings basis for Copenhagen Airport for the next four years, which is one of the essential factors in implementing the coming phases
of Expanding CPH. Equally important, the agreement contains specific investments in order to lower our airline customers' costs of operating at Copenhagen Airport.
We want CPH's contribution to growth in the region to be sustainable, from a business-, employee- and environmental point of view. It is therefore positive to see that CPH's increasingly more integrated and business-driven approach to corporate social responsibility is creating results. As part of this approach, and to make our reporting more stakeholder friendly, CPH has adopted an integrated annual reporting scheme, which will be further developed in a more modern, digital and dynamic direction.
In April 2014, Henrik Gürtler decided to retire as chairman based on the Danish corporate governance recommendations, having served on the Board for 12 years. We thank Henrik Gürtler for his leadership, cooperation and his strong contribution to the development of Copenhagen Airport. During his tenure, the airport grew
from serving 18.3 million passengers in 2002 to serving 25.6 million in 2014.
Lars Nørby Johansen has been elected as the new chairman. CPH will benefit from his broad and relevant experience as a chairman and board member for a number of large Danish and international companies. Lars Nørby Johansen is fully supportive of the Board-approved World Class Hub strategy.
The shareholders also elected John Bruen as a new member of the Board, bringing further airport experience to CPH.
The Board of Directors of Copenhagen Airports A/S
Copenhagen Airports' Group Annual Report for 2014, Facts & Figures 2014, describes CPH's performance in 2014 and outlook for 2015. Facts & Figures integrates and replaces CPH's two previous annual reports: its financial report, the CPH Group Annual Report, and the non-financial report, CPH and Society.
Facts & Figures 2014 including the financial statements of the Parent Company constitutes CPH's statutory annual reporting.
Going forward, CPH's reporting will take the form of a digital format. To improve real time communication about developments at CPH and improve the airport's transparency, a website with information and easily accessible facts about how Copenhagen Airport is operated and developed will be launched in the spring of 2015.
Facts & Figures 2014 represents CPH's Communication On Progress (COP report) to the UN Global Compact.
This report is divided into three main sections: the management's review, the financial and non-financial statements, and the management's statement and independent auditors' reports.
In the management's review, CPH's Board of Directors provides information about the results and developments in 2014. Subsequently, in the "Letter from the Executive Management" CEO Thomas Woldbye describes the strategic achievements in 2014 and discusses the future responsible development of CPH.
In addition, the management's review presents the "Highlights of 2014", followed by the financial, segmental and non-financial results in greater detail. The subsections "Segmental performance" and "Non-financial review" (pages 33-45) report on how CPH in 2014 performed against its non-financial business targets, and the results achieved during the year. Accordingly, these pages (combined with the non-financial statements) make up CPH's corporate social responsibility statement as required and specified in sections 99a-b of the Danish Financial Statements Act. The management's review also presents CPH's approach to risk management, provides shareholder information, makes reference to CPH's report on corporate governance and introduces the Board of Directors and the Executive Management.
The second section of Facts & Figures 2014 presents the consolidated financial and non-financial statements. The non-financial statements are structured according to the guiding targets determined by CPH's management and Board of Directors in the process of advancing Copenhagen Airport towards continued responsible growth. The non-financial statements conclude with an overview of how CPH has integrated the UN Global Compact principles into its strategies and processes.
Finally, the last section of the report consists of the management's statement and the independent auditors' reports on both the financial statements and the non-financial information.
Of CPH's 2,170 full-time employees, 2,132 work at Copenhagen Airport, 35 at Roskilde Airport and three in the international department (CAI).
In 2014, more than 23,000 employees were working for more than 700 companies operating at the airport.
➭ Baggage conveying and sorting facilities
more than 700 companies operating at the airport
➭ Bagage handling (airlines and handling companies)
For the first time in its 90-year history, Copenhagen Airport surpassed 25 million travellers in 2014, a passenger record that led to a strong financial result. Ten new routes were opened, intercontinental passengers grew by 8.0% and transfer passengers grew by 12.7%. The continued significant growth is based on delivery on the World Class Hub strategy. As competition between European airport hubs grows, our strategy focuses on building competitiveness through efficient operation and the delivery of extraordinary customer experiences.
In 2014, CPH was rewarded for its continued improvements and position as one of the world's best airports, and we were proud to receive a number of awards:
World Class Stakeholder Management
Extraordinary Customer Experiences
The combined efforts within the World Class Hub strategy sum up under the three themes, extraordinary customer experiences, efficient operations and competitiveness.
Rated one of the three best airports in the world
at the World Routes conference in Chicago
86
Overall passenger satisfaction in 2014
• Finally, after being rated the world's best at route development in 2013, we consolidated our position among the elite in 2014 by winning the European top ranking and being designated one of the three best airports in the world at the World Routes conference in Chicago.
Our own comprehensive surveys of passenger satisfaction showed that overall passenger satisfaction in 2014 rose from 84 to 86 on a scale from 0 to 100, which along with the many awards received show that we continue to give our passengers and customers an excellent service experience. CPH will strive to improve in 2015 and beyond. To this effect we are implementing a "Service Excellence" initiative across all our customer segments to ensure that our people embrace the right level of service and can convey it to customers. The initiative specifically aims to improve the service experience of our airlines, our concessionaires and our tenants, and to raise their level of satisfaction with CPH. We strive to make Copenhagen Airport an even more attractive airport and business partner.
Copenhagen Airport has, for more than a decade, worked to implement various kinds of self-service solutions, starting with an automated check-in process. Since then, a number of new self-service solutions have
been added, and in 2013 we introduced automated bag-drops at check-in and in 2014 automatic boarding at many gates. Self-service solutions generally raise the level of passenger satisfaction, reduce airline costs and improve utilisation of capacity, making it faster and easier for more travellers to make their way through the airport. This positive development will continue in 2015.
In the past year, CPH managed to reduce costs per passenger by 1.7%, excluding oneoff items. This was achieved through a continued focus on efficiency improvements and on reducing the total cost of operating at Copenhagen Airport, which supports CPH's World Class Hub strategy. We aim to maintain world-class operational efficiency for the benefit of all of our customers, but with a high share of labour costs and increasing regulator-driven costs, further improvements remain challenging. In spite of this, initiatives to improve the cost structure will continue.
An important initiative is our "Process Excellence" programme, which will optimise and align our processes for the benefit of both customers and our internal efficiency. This will allow us to take the next step in terms of efficiency in cooperation with our customers, while enhancing our position as one of the most efficient airports in the world, with competitive charges and a high level of service quality.
CPH's purpose is to operate and develop Copenhagen Airport as the Gateway of northern Europe in a responsible manner. Entitled Responsible Growth, our corporate responsibility strategy is an integral part of our World Class Hub strategy. We aim to grow responsibly towards people and the environment and to create value for the region and Denmark.
Our strategic areas of focus are listed on the next page. In this report, we present the specific targets we have defined for each area, describe how we worked to meet the targets in 2014 and what results we achieved.
In addition to our strategic business achievements, 2014 also saw significant positive developments regarding our employees. A record 94% of CPH employees responded in our engagement survey, with the engagement score showing a clear upward trend reaching a historically high level.
We will strengthen Copenhagen Airport's position as the hub of northern Europe.
We will operate and develop CPH in a responsible way with respect for the people who are impacted by the airport.
We will operate and develop CPH in a sustainable manner with respect for our immediate environment and the global environment.
The positive trend of reduced absence was continued with a further reduction compared to 2013.
Within the environmental field, CPH obtained an Airport Carbon Accreditation from ACI, being the first airport ever to enter directly at level 3 out of 4. We also continued our substantial energy savings well in line with our ambitious 2020 reduction target. CPH continues to support the UN Global Compact, which we signed in 2011.
In January 2014, we presented our plan for the airport's growth: Expanding CPH. It outlines how Copenhagen Airport can grow over the next two decades from the current 25.6 million travellers to 40 million. It sets out the vision of the future as well as an invitation to the many parties who are essential in creating the necessary growth to realise the vision. We are ready to invest substantially in an expansion of Copenhagen Airport over the next few decades, however, growth does not come on its own and the airport can only grow if the region continues to be attractive for both tourism and business. CPH realises that the plan will require collaboration and alignment among many important stakeholders in society and the region.
Essential to continued investments in airport infrastructure was also the signing of a renewed charges agreement with the airlines in 2014, a four-year agreement that ensures inflation adjustment of the airport charges. As a result, Copenhagen Airport will retain its position as one of Europe's most competitive major airports offering high value for money.
As part of the charges agreement, CPH committed to substantial investments to lowering the airlines' total cost of operation in Copenhagen Airport. Two large scale projects are scheduled for execution in 2015. The expansion of the critical part of the security restricted area (CSRA) is one of the projects. On a daily basis, this will eliminate a large number of time-consuming security checks for employees from airlines and service providers. The other is the merger of the domestic and Schengen areas of the airport, allowing the airlines to build more efficient processes and a better product for their passengers.
The growth expected in the coming years will also require a range of other projects aimed at ensuring a continued physical expansion of the airport, including an extension to Pier C in 2014/15 to accommodate more intercontinental flights and an expansion of the
airport's central security checkpoint, with two additional lanes scheduled to open in 2015.
Further, we will remodel and refurbish the western end of Terminal 2, which will provide an additional 700 square metres of space for passengers. This concludes the expansion of Terminal 2 started in 2013, which has transformed the space available for passengers, adding both check-in capacity and 2,100 square metres for the benefit of our customers.
Finally, I would like to take this opportunity to thank our business partners, our many external stakeholders and our staff for their commitment to our common goals for the gateway of northern Europe: increased connectivity for the region, an improved customer experience and greater operational efficiency.
Thomas Woldbye CEO of Copenhagen Airports A/S
The figure shows Copenhagen Airport's position among other major European airports as measured by price and quality. Price is defined as the charges level of each airport as determined by LeighFisher, an independent firm of consultants, and quality is based on passenger surveys at European airports conducted by the industry organisation Airport Council International (ACI) Airport Quality Service surveys in 2014.
million passengers in 2014
development" in the 20 to 50 million passenger annually category.
DKK 976.1 million). The decrease in profit after tax was primarily a result of the high investment level and the recognition of deferred tax income in 2013 due to new tax legislation.
• It is recommended that a final dividend of DKK 522.4 million be paid out, corresponding to DKK 66.57 per share. The total dividend will amount to DKK 958.4 million corresponding to DKK 122.1 per share.
million
924.1
Investments in 2014
"Airport Food & Beverage Offer of the Year" awarded at the international FAB Awards
response rate
94%
Engagement survey:
• The working environment and prevention of accidents and injuries in connection with CPH's building projects are already on the agenda. In 2014, CPH's project managers completed a working environment coordinator course for building projects, so they are better able to set requirements for project health and safety to prevent accidents.
In 2014, CPH saved a total of 3.3 GWh of energy, thereby obtaining savings from 2013 to 2014 equivalent to a total of 41% of the overall 2020 target.
In October, CPH opened a new fire training area with a number of environmental measures incorporated, all of which play a part in stepping up control of the site's environmental impact. These measures focused particularly on water consumption, water treatment and the use of gas rather than jet fuel in fire training. Altogether, this resulted in an operationally optimised fire training area with reduced environmental impact.
| DKK million | 2014 | 2013 | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|
| Income statement | |||||
| Revenue | 3,868 | 3,645 | 3,516 | 3,344 | 3,239 |
| EBITDA | 2,139 | 1,996 | 2,668 | 1,775 | 1,964 |
| EBIT | 1,461 | 1,373 | 2,109 | 1,263 | 1,472 |
| Profit from investments | - | - | - | - | 27 |
| Net financing costs | 197 | 201 | 194 | 206 | 271 |
| Profit before tax | 1,263 | 1,172 | 1,915 | 1,057 | 1,228 |
| Net profit | 958 | 976 | 1,615 | 756 | 909 |
| Statement of comprehensive | |||||
| income | |||||
| Other comprehensive income | (57) | (3) | (101) | (87) | 86 |
| Comprehensive income | 902 | 973 | 1,514 | 669 | 995 |
| Balance sheet | |||||
| Property, plant and equipment | 8,928 | 8,669 | 8,420 | 7,883 | 7,699 |
| Financial investments | 1 | 1 | 1 | 1 | 1 |
| Total assets | 9,888 | 9,559 | 10,012 | 8,946 | 9,283 |
| Equity | 2,845 | 2,901 | 3,602 | 2,916 | 3,480 |
| Interest-bearing debt | 4,735 | 4,204 | 3,863 | 3,909 | 3,830 |
| Capital investments | 789 | 739 | 936 | 591 | 621 |
| Investment in intangible assets | 135 | 172 | 133 | 182 | 154 |
| Cash flow statement | |||||
| Cash flow from operating activities | 1,805 | 1,384 | 1,672 | 1,456 | 1,116 |
| Cash flow from investing activities | (922) | (910) | (349) | (769) | (257) |
| Cash flow from financing activities | (874) | (1,270) | (837) | (1,243) | (407) |
| Cash at end of period | 47 | 37 | 833 | 347 | 903 |
| 2014 | 2013 | 2012 | 2011 | 2010 | |
|---|---|---|---|---|---|
| Key ratios | |||||
| EBITDA margin | 55.3% | 54.8% | 75.9% | 53.1% | 60.6% |
| EBIT margin | 37.8% | 37.7% | 60.0% | 37.8% | 45.4% |
| Asset turnover rate | 0.40 | 0.39 | 0.40 | 0.39 | 0.39 |
| Return on assets | 15.1% | 14.7% | 23.7% | 14.9% | 17.9% |
| Return on equity | 33.4% | 30.0% | 49.5% | 23.6% | 27.2% |
| Equity ratio | 28.8% | 30.3% | 36.0% | 32.6% | 37.5% |
| Earnings per DKK 100 share | 122.1 | 124.4 | 205.8 | 96.3 | 115.8 |
| Cash earnings per DKK 100 share | 208.6 | 203.7 | 276.9 | 161.5 | 178.5 |
| Net asset value per DKK 100 share | 362.5 | 369.6 | 459.0 | 371.5 | 443.5 |
| Dividend per DKK 100 share | 122.1 | 124.4 | 205.8 | 96.3 | 160.6 |
| NOPAT margin | 28.7% | 29.1% | 49.6% | 28.7% | 36.1% |
| Turnover rate of capital employed | 0.45 | 0.42 | 0.41 | 0.40 | 0.39 |
| ROCE | 16.8% | 15.6% | 24.5% | 15.0% | 17.7% |
The definitions of ratios are in line with the recommendations from 2010 made by the Association of Danish Financial Analysts, except for the ratios not defined by the Association. Definitions of ratios are published at www.cph.dk/en
Consolidated revenue rose by DKK 223.0 million to DKK 3,867.5 million, mainly driven by the 6.5% increase in passenger numbers and the enhanced offering of shopping and parking products.
Operating costs including depreciation increased by 5.9% to DKK 2,393.1 million, excluding one-off items of
DKK 15.8 million, which were primarily related to restructuring costs.
The operating cost increased primarily due to an increase in staff costs by DKK 57.9 million as a result of wage indexation and an increase of 48 fulltime employees as a consequence of regulatory requirements to security. This was partly offset by the continuing focus on cost efficiencies and lower snow-clearing costs, which allowed CPH to reduce the cost per passenger by 1.7% in 2014. Depreciation rose
by DKK 55.9 million as a consequence of the higher level of investment.
The cosolidated EBIT rose by 6.5%, excluding one-off items. Reported EBIT was up by 6.4% to DKK 1,460.5 million.
Net financing costs for 2014 were DKK 197.3 million, a DKK 4.1 million decrease year on year from 2013.
CPH's profit before tax excluding one-off items increased by DKK 94.8 million primarily due to passenger growth, a changed passenger mix, charges indexation, better performance in the shopping centre, higher revenue from parking and a higher activity in hotel operations.
Tax on consolidated profit was DKK 304.8 million, and the effective tax rate was calculated at 24.1%.
| DKK million | 2014 | 2013 | Ch. | Ch.% | DKK million | 2014 | 2013 | Ch. | Ch.% |
|---|---|---|---|---|---|---|---|---|---|
| INCOME STATEMENT | INCOME STATEMENT EXCLUDING ONE-OFF ITEMS |
||||||||
| Revenue | 3,867.5 | 3,644.5 | 223.0 | 6.1% | Revenue | 3,867.5 | 3,644.5 | 223.0 | 6.1% |
| Other income | 1.9 | 1.5 | 0.4 | 26.7% | Other income | 1.9 | 1.5 | 0.4 | 26.7% |
| Operating costs | 2,408.9 | 2,272.8 | 136.1 | 6.0% | Operating costs | 2,393.1 | 2,260.4 | 132.7 | 5.9% |
| Operating profit | 1,460.5 | 1,373.2 | 87.3 | 6.4% | Operating profit | 1,476.3 | 1,385.6 | 90.7 | 6.5% |
| Net financing costs | 197.3 | 201.4 | (4.1) | (2.0%) | Net financing costs | 197.3 | 201.4 | (4.1) | (2.0%) |
| Profit before tax | 1,263.2 | 1,171.8 | 91.4 | 7.8% | Profit before tax | 1,279.0 | 1,184.2 | 94.8 | 8.0% |
| Tax on profit for the year | 304.8 | 195.7 | 109.1 | 55.7% | Tax on profit for the year | 308.7 | 198.8 | 109.9 | 55.3% |
| Net profit for the year | 958.4 | 976.1 | (17.7) | (1.8%) | Net profit for the year | 970.3 | 985.4 | (15.1) | (1.5%) |
In 2013, the Danish parliament adopted legislation to lower the Danish corporate tax rate from 25% to 22% over the period 2014-2016, which resulted in the recognition of DKK 115.1 million (as income) as of 31 December 2013.
CPH's profit after tax decreased by DKK 17.7 million to DKK 958.4 million, a year-on-year decrease of 1.8%. The decrease is primarily related to the high level of investment and the
above-mentioned recognition of tax income in 2013. Excluding one-off items, profit after tax amounted to DKK 970.3 million.
Total assets amounted to DKK 9,887.7 million at 31 December 2014 (2013: DKK 9,559.2 million). The DKK 328.5 million increase was primarily due to an increase in capital investments.
| DKK million | 2014 | 2013 | Ch. | Ch.% |
|---|---|---|---|---|
| BALANCE SHEET | ||||
| Non-current assets | 9,425.0 | 9,153.8 | 271.2 | 3.0% |
| Current assets | 462.7 | 405.4 | 57.3 | 14.1% |
| Total assets | 9,887.7 | 9,559.2 | 328.5 | 3.4% |
| Equity | 2,845.1 | 2,900.6 | (55.5) | (1.9%) |
| Non-current liabilities | 5,169.0 | 5,683.6 | (514.6) | (9.1%) |
| Current liabilities | 1,873.6 | 975.0 | 898.6 | 92.2% |
| Total liabilities | 7,042.6 | 6,658.6 | 384.0 | 5.8% |
| Total equity and liabilities | 9,887.7 | 9,559.2 | 328.5 | 3.4% |
The Group's non-current assets totalled DKK 9,425.0 million (2013: DKK 9,153.8 million), equivalent to 95.3% of total assets (2013: 95.8%). The largest investments included stand refurbishment, improved maintenance of taxi ways, an extension to Pier C, expansion of Terminal 2, optimisation and expansion of the baggage system, improvement of the fire training area and self-boarding gates.
Current assets totalled DKK 462.7 million (2013: DKK 405.4 million), an increase primarily due to the increased receivables from new standard contracts for the shopping centre.
Equity totalled DKK 2,845.1 million as at 31 December 2014 (2013: DKK 2,900.6 million), equivalent to 28.8% of the total balance sheet (2013: 30.3%). Equity increased by the net profit for the year of DKK 958.4 million (2013: DKK 976.1 million); this was partially offset by dividends paid to shareholders totalling DKK 957.2 million (2013: DKK 1,674.6 million). In addition, a negative effect of
market value adjustments of hedging transactions plus tax of DKK 56.7 million was recorded (2013: negative effect of DKK 3.1 million). Market value adjustments of equity relate to currency swaps to hedge the USD and GBP exposure and interest rate swaps.
Liabilities totalled DKK 7,042.6 million as at 31 December 2014 (2013: DKK 6,658.6 million). Non-current liabilities decreased by DKK 514.6 million as at 31 December 2014 (2013: an increase of DKK 978.5 million), while current liabilities excluding the current portion of financial institutions and other loans amounted to DKK 1,183.3 million (2013: DKK 944.2 million), an increase of DKK 239.1 million from 31 December 2013. The increase was primarily due to higher trade payables and increased prepayments from customers due to the new standard contracts for the shopping centre.
in 2014 totalled DKK 924.1 million (2013: DKK 911.4 million).
The increase in the cash flow from operating activities of DKK 421.7 million was mainly the result of the higher level of activity and a continued focus on cost efficiencies and net working capital optimisation.
The cash flow for intangible assets and property, plant and equipment
The cash flow from financing activities comprises the net proceeds from long-term facilities, mortgage payments and dividend payments.
CPH had DKK 47.1 million in cash and cash equivalents and DKK 1,885.6 million in committed undrawn credit facilities at 31 December 2014.
| DKK million | 2014 | 2013 | Ch. | Ch.% |
|---|---|---|---|---|
| CASH FLOW STATEMENT | ||||
| Cash flow from: | ||||
| Operating activities | 1,805.5 | 1,383.8 | 421.7 | 30.5% |
| Investing activities | (921.9) | (909.7) | (12.2) | 1.3% |
| Financing activities | (873.5) | (1,269.9) | 396.4 | (31.2%) |
| Net cash flow for the year | 10.1 | (795.8) | 805.9 | (101.3%) |
| Cash at beginning of year | 37.0 | 832.8 | (795.8) | (95.6%) |
| Cash at the end of the year | 47.1 | 37.0 | 10.1 | 27.3% |
CPH's interest-bearing debt amounted to DKK 4,734.7 million as at 31 December 2014 (2013: DKK 4,203.9 million), and net interest-bearing debt totalled DKK 4,687.6 million (2013: DKK 4,166.9 million). The difference, DKK 47.1 million (2013: DKK 37.0 million), was cash and cash equivalents. Of the interest-bearing debt, 86.3% is long-term (2013: 99.3%), i.e. with due dates more than a year from 31 December 2014, and it primarily consists of facilities in US dollars and pounds sterling. CPH issued USD 160 million bonds (USPP) with a term of ten years in the US for the third time in 2013, whilst repaying a USD 100 million loan. The new loan was USD 60 million higher than the previous loan, as CPH took advantage of the favourable market conditions for the transaction. One of the USPP loans of USD 100 million falls due in 2015, and therefore it was reclassified to current liabilities in 2014.
No extraordinary circumstances affected the recognition and measurement in 2014. See note 1, "Summary of significant accounting policies" and notes to the financial statements for a description of the estimates and uncertainties, cf. contents on page 65.
Based on the expected traffic programme for 2015, the total number of passengers is expected to increase. Traffic in 2015 could, however, be adversely affected by continuing competition among airlines and by any closure of routes due to airline cutbacks or a slowdown in the global economy.
The growth in the number of passengers and the changed structure of charges as from 1 April 2015 is expected to have a positive impact on revenue.
Operating costs are expected to be higher than in 2014, primarily due to the expected rise in passenger numbers, stricter requirements for security, and cost inflation, but this will be partly offset by a continuing focus on operating cost efficiencies.
Overall, depreciation charges and financial costs are expected to be slightly higher than in 2014, primarily as a result of the continually high investment level.
Profit before tax for 2015 is expected to be in the range of DKK 1,300.0 million to DKK 1,400.0 million, excluding one-off items. Operating profit before depreciation is projected to be higher in 2015 than in 2014, excluding oneoff items.
In terms of capital investments, CPH expects to continue to invest for growth. As in recent years, CPH expects capital investments to remain at a high level in 2015. Planned investments include expansion of the airport's security restricted area (CSRA) and the merger of the terminal areas, which is part of the charges agreement that comes into force on 1 April 2015. CPH will also be investing in non-aeronautical projects for the benefit of airlines and passengers.
| POSITION | |||
|---|---|---|---|
| Extraordinary customer experiences |
➝ In 2018, the passenger satisfaction (with check-in, security, cleaning, the shopping centre, the terminals and baggage delivery) at Copenhagen Airport should reach 87 on a scale from 0-100. |
➝ In 2018, the percentage of passenger satisfaction with CPH Security should be above 87 on a scale from 0-100. ➝ 85% of all passengers should clear security at the central security check point in less than five minutes* |
non-aeronautical business. |
| Efficient operations |
➝ In 2018, a minimum of 85% of traffic from Copenhagen Airport should to be on time (<15 minutes). ➝ The number of reported near-incidents should be at a maximum of 25 per 10,000 operations. |
➝ 95% of all events to be reported should be reported by the persons involved. |
|
| Competi tiveness |
➝ Seen over a rolling four-year period, Copenhagen Airport should have a higher growth rate than the majority of eight selected key hubs in Europe. |
There are three areas of focus within the World Class Hub strategy: Extraordinary customer experiences, efficient operations and competitiveness.
In order to measure the achievements within these focus areas, CPH has set a number of targets (see table on the left).
On the following pages and in the nonfinancial statements is a status report for these targets and CPH's other business performance parameters, divided into CPH's two segments: aeronautical business and non-aeronautical business.
* This target will be changed from 1 April 2015 to "90% in less than 15 minutes (in peak: 5-9AM and 3-7PM)" as a result of the new service level agreement (SLA) that is part of the new charges agreement.
Aeronautical revenue rose by 8.6% to DKK 2,249.6 million driven by passenger growth of 6.5%, a change in the passenger mix, especially due to a 12.7% increase in transfer departing passengers, and a price-index +1% adjustment of passenger-related charges on 1 April 2014.
| DKK million | 2014 | 2013 | Ch. | Ch.% |
|---|---|---|---|---|
| FINANCIAL PERFORMANCE | ||||
| Revenue | 2,249.6 | 2,070.9 | 178.7 | 8.6% |
| Other income | 1.9 | 1.5 | 0.4 | 26.7% |
| Profit before interest | 413.7 | 355.8 | 57.9 | 16.3% |
| Segment assets | 6,955.4 | 6,721.1 | 234.3 | 3.5% |
| DKK million | 2014 | 2013 | Ch. | Ch.% |
| REVENUE | ||||
| Take-off revenue | 420.6 | 397.5 | 23.1 | 5.8% |
| Passenger revenue | 1,061.8 | 969.6 | 92.2 | 9.5% |
| Security revenue Handling |
525.9 182.8 |
480.2 167.7 |
45.7 15.1 |
9.5% 9.0% |
| Aircraft parking, CUTE, etc. | 58.5 | 55.9 | 2.6 | 4.6% |
Take-off revenue was up by 5.8% year on year as a result of a 2.8% increase in the number of operations, while aircraft takeoff weight increased by 5.1% year on year. Passenger revenue rose 9.5%, mainly driven by an increase in the number of locally departing passengers from both CPH Go and the main terminal, international transfer passengers and the indexation of charges on 1 April 2014.
Revenue from security and handling increased by a combined DKK 60.8 million to reach DKK 708.7 million, or 9.4%, a rise mainly due to the increase in the number of locally departing international passengers and the priceindex adjustment of charges on 1 April 2014.
Passenger numbers rose 6.5% to total 25.6 million, a record for Copenhagen Airport. This was one of the highest growth rates among our peer European airports, and helped strengthen Copenhagen Airport's competitive position in Europe, allowing CPH to meet its strategic target. This growth resulted in CPH moving up one place to the 15th biggest airport in Europe as at the end of 2014. The number of operations increased by 2.8% to reach 251,799 take-offs and landings in 2014.
POSITION
In 2018, the rate of passenger satisfaction (with check-in, security, cleaning, the shopping centre, the terminals and baggage delivery) at Copenhagen Airport should reach 87 on a scale from 0-100. Read more at page 29.
The number of international passengers rose by 6.8%, and the number of domestic passengers rose by 2.3%. The number of transfer passengers grew by 12.7%, the highest growth rate in the last five years. This underlines the fact that CPH is meeting the targets for strengthening its hub position that were set in its World Class Hub strategy.
The number of passengers transferring to intercontinental flights was up 10.6%, and short-haul-to-short-haul transfers grew by 12.9%. The percentage of international passengers increased from 92.1% to 92.4% of traffic, and intercontinental traffic (long haul) increased by 8.0% and represented 10.4% of traffic. In 2014, Norwegian opened one long-haul route to Los Angeles and services to Bangkok and New York, JFK. The current number of long-haul routes out of Copenhagen Airport is 27.
In 2014, new routes were opened to ten destinations previously unserved from Copenhagen Airport; while four destinations closed again, resulting in a net gain of six unserved destinations for the year.
Furthermore, new airlines began operating on 11 destinations already served; while five served destinations closed, bringing a net gain of six served destinations. Finally, extra capacity was added to 13 different destinations in the form of more frequencies or larger aircraft being deployed.
The total number of low-cost passengers at Copenhagen Airport was 9.4% higher in 2014 than in 2013. Low-cost carriers had a market share of 25.1% at the end of 2014, (2013: 24.5%).
Despite the higher level of activity, Copenhagen Airport has reduced costs per passenger by 1.7%, when excluding one-off items. This was achieved through a continuing focus on efficiency improvements, which helped reduce the total costs of operating at Copenhagen Airport, both of which support CPH and its airline partners.
The key target for efficient operations set by CPH is punctuality, with the aim of more than 85.0% of traffic in 2018 to be on time, i.e. at less than 15 minutes' delay. In 2014, 86.8% of traffic was on time, with CPH meeting its target and claiming the top position among the most punctual medium sized airports in the EU and a shared second place worldwide.
POSITION
In 2018, a minimum of 85% of traffic from Copenhagen Airport should to be on time (<15 minutes).
In 2014, 86.8% of traffic was on time, and CPH claimed the top position among the most punctual medium sized airports in the EU.
Despite the extensive refurbishment and construction work, which involved changes to the terminals as well as the shopping centre, the level of passenger satisfaction remained high (86.3 on a scale from 0 to 100, against 84.4 in 2013): this demonstrates that, as part of its strategy, Copenhagen Airport is able to offer an extraordinary customer experience.
CPH exceeded its target for passenger satisfaction with security screening in 2014, reaching a score of 89. This has been a key focus for the past four years. Achieving this target was rewarded by CPH being recognised as the best airport in the world for security processing the award received from Skytrax for the second consecutive year.
The roughly 100,000 passenger interviews CPH conducts annually also provide a good indication of how the airport can meet passenger requirements. Waiting times for security screening are an important element in the level of this satisfaction. CPH has defined a target for 2014 that 85% of passengers shoud clear security at the central security checkpoint in less than five minutes, a goal met in 2014, with 91% of passengers screened within five minutes. This was also in compliance with its service level agreement with the airlines.
In 2018, the passenger satisfaction with CPH Security should be above 87 on a scale from 0 to 100.
This target will be changed from 1 April 2015 to "90% in less than 15 minutes (in peak: 5-9AM and 3-7PM)" as a result of the service level agreement (SLA) that is part of the new charges agreement.
In 2014, the volume of cargo carried rose by 8.1% to reach 390,210 tonnes, and the number of cargo operations increased by 19.6%, partly as a result of DHL Aviation consolidating more traffic in Copenhagen and Emirates SkyCargo's consolidation of its Nordic operations at Copenhagen Airport.
Passenger numbers at Roskilde Airport fell by 8.5%, mainly due to the fact that the Danish Armed Forces are no longer transporting soldiers to and from Afghanistan. Due to a rise in the demand for transport by helicopter, Roskilde Airport has increased its quota of helicopter operations at Roskilde Airport and today handles about 8,000 flights. In 2014, Roskilde Airport was rated as the number four Fixed Base Operator by the European Business Air News, and it has been in the top ten for three years in succession. For the first time, Roskilde Airport has surpassed Stockholm-Bromma Airport in Sweden to become the number one airport for fixed base operations in Scandinavia.
The increase in EBIT was primarily driven by revenue, a continuing strong focus on cost efficiencies and lower snow clearing costs in 2014. This was partly offset by increased depreciation charges as a result of the continuing high level of investment.
In recent years, CPH has invested in the region of DKK 1 billion annually, and in 2014 CPH began expanding the central security checkpoint to add an additional two lanes to its existing 16, increasing capacity by more than 10%. The new lanes are scheduled for completion in the spring of 2015, ensuring that the security screening capacity will be sufficient to handle the summer traffic expected in 2015.
CPH also began extending Pier C in 2014, the pier used for long-haul services and non-Schengen traffic. The pier will be extended by 100 metres, and an additional three gates will have jet bridges directly to aircraft, increasing both capacity and efficiency.
Copenhagen Airport also continued expanding Terminal 2 in 2014, which will create an additional 700 square metres of floor space, provide more light and make the terminal
area more spacious. In addition, the offering of food and beverages and other facilities for passengers will be upgraded, including a number of stations where passengers can charge their phones, tablets and laptops. The ground floor of the building that houses the terminal will be ready by the summer of 2015, and the offices on the first and second floors will be ready in the autumn 2015.
In the spring of 2015, Copenhagen Airport will merge domestic traffic from Terminal 1 with international traffic in Terminal 2 and Terminal 3. The decision to merge the traffic from Terminal 1, is part of the new four-year charges agreement, which will improve the airlines' product and reduce their operating costs by combining their operations. Furthermore, in 2015, CPH will expand the critical part of the security restricted area (CSRA). On a daily basis, this will eliminate a large number of time-consuming security checks for employees from airlines and service providers.
CPH extended Pier C by 100 metres to the benefit of longhaul services and non-Schengen traffic.
Started up the expansion of Terminal 2, creating an additional 700 square metres to be ready by the summer of 2015.
Non-aeronautical revenue rose by 2.8% to reach DKK 1,617.9 million, partly driven by a 4.4% increase in concession revenue from the shopping centre, a 6.4% increase in parking revenue and a 5.2% increase in hotel operations.
| DKK million | 2014 | 2013 | Ch. | Ch.% |
|---|---|---|---|---|
| FINANCIAL PERFORMANCE | ||||
| Revenue | 1,617.9 | 1,573.6 | 44.3 | 2.8% |
| Profit before interest | 1,046.8 | 1,017.4 | 29.4 | 2.9% |
| Segment assets | 2,884.7 | 2,800.7 | 84.0 | 3.0% |
| Investments in associates | 0.4 | 0.4 | - | - |
| DKK million | 2014 | 2013 | Ch. | Ch.% |
| CONCESSION REVENUE | ||||
| Shopping centre | 705.6 | 675.9 | 29.7 | 4.4% |
| Parking | 314.5 | 295.6 | 18.9 | 6.4% |
| Other revenue | 52.4 | 47.9 | 4.5 | 9.2% |
| Total | 1,072.5 | 1,019.4 | 53.2 | 5.2% |
Concession revenue from the shopping centre was up by 4.4%. This increase was primarily generated by new and improved food and beverage offerings and specialty shop concepts such as the new Baresso unit near the entrance to Pier B, the Hotel Chocolat shop in Terminal 3 and a new large Hèrmes boutique. The higher number of international departing passengers in 2014 also contributed to the revenue growth. In addition in 2014, CPH welcomed a number of new shops, including B&O Play, !Solid, Tinderbox, Ole Mattiesen, Change, Max Mara and Illums Bolighus. This broadened the offering at the shopping centre in line with CPH's strategy of providing passengers with a strong mix of local heroes and international top brands.
Revenue from the duty- and tax-free stores also increased year on year, partly due to growth in passenger numbers and partly due to investment in these stores. An extensive refurbishment project negatively affected sales at the large duty- and tax-free store in 2013, with 2014 benefitting from the full year trading of the new store. Development of the shopping centre will continue in 2015.
Parking revenue grew by 6.4%, driven by intensified online and media offers and an increase in the number of locally departing passengers. CPH also achieved an increase in average revenue per transaction with a stronger campaign strategy and the improved online product.
Other income rose by 9.2%, primarily through positive trends in car hire. CPH also saw an increase in marketing revenue.
Rent consists of revenues from leasing of premises for office, maintenance, hangar and warehouse use, as well as leasing of buildings/head office facilities, properties and concessions to companies associated with Copenhagen Airport that support CPH's core business: airport operations.
Revenue from renting premises was down by 13.3%, while revenue from land rent was up by 0.8%. Overall, rent was down by 9.1%, which was mainly due to new and simplified standard contracts at the shopping centre in which rent was replaced by concession revenue. The allocation of income between concession revenue and rent is neutral in terms of EBITDA. Rent from premises leased
to SAS also declined as SAS merged its back office with its head office in Stockholm.
Hotel operation revenue was up by 5.2% to DKK 206.2 million, primarily because the average room rate was higher than last year. The occupancy rate exceeded 85% in 2014, underlining the high demand for the hotel. In addition, the Hilton saw a higher level of meeting, conference and banquet activity. The Hilton Copenhagen Airport received an award for Denmark's Leading Hotel Suite
Ch.% (13.3%) 0.8% (7.3%) (9.1%) Ch.% 5.2% Ch. (16.4) 0.4 (0.5) (16.5) Ch. 10.1 2013 123.5 50.3 7.6 181.4 2013 196.1 2014 107.1 50.7 7.1 164.9 2014 206.2 DKK million RENT Rent from premises Rent from land Other rent Total DKK million SALES OF SERVICES, ETC. Hotel operation
174.3 380.5
Other Total
at the European final of the World Travel Awards 2014, voted for by travel agents worldwide.
Other revenue also included revenue from the service scheme for passengers with reduced mobility (PRM). This service is provided on a transparent and non-profit basis, with the funding covering costs to the external service provider.
EBIT was higher than in 2013. The increase is due to higher revenues and a continuing focus on cost efficiencies. However, this rise was partly offset by higher depreciation charges as a result of the continuing high investment level.
(1.3%) 2.1%
(2,4) 7.7
176.7 372.8
| PEOPLE | ||
|---|---|---|
| Working environment and health |
CPH will have a maximum sickness absence rate of 4.5% by 2020. By 2020, CPH will have maximum 13.5 occupational injuries per one million working hours. |
By 2020, CPH will have an overall score of 83 (on a scale from 0-100) in the employee engagement survey. |
| Diversity | CPH will have an approved strategy for diversity by the end of 2015. CPH will seek to have a proportion of women in management equalling the staff as a whole. |
CPH will seek to have 33% women on the Board of Directors by 2017 (equiva lent to the percentage of women em ployees in 2012). CPH will increase the number of appren tices and office trainees to 21 in 2015. |
| Business ethics |
By the end of 2015, CPH will have a contract management system in place for managing contracts with suppliers. |
In Q4 2015, CPH will ensure that the UN Global Compact principles have been incorporated into contracts with all new concessionaires at the Copenhagen Airport shopping centre. |
Both the Board of Directors and Senior Management are committed to CPH's corporate social responsibility policy. This policy and the strategy for responsible growth can be read on CPH's website
CPH believes that responsible growth is an integral part of its business strategy. Therefore, in line with the targets CPH has set for strengthening its competitive position, CPH has defined a number of targets that ensure that Copenhagen Airport is operated and developed in a way that respects the people impacted in various ways by the airport's operations and respects both the near environment and the climate in a broader sense.
The following is a description of CPH's social and environmental results for 2014.
Copenhagen Airport is one of Denmark's largest workplaces, with roughly 23,000 people working on its premises daily. At year-end 2014, 2,306 people were employed by Copenhagen Airports A/S, which was 60 more than at year-end 2013. CPH is aware of its responsibility towards its employees and
makes every effort to ensure their health, safety and well-being.
In 2014: 80 managers on health management training
By year-end 2015, all managers will have completed this programme
With 3,000 suppliers and collaboration with several hundred concessionaires at the Copenhagen Airport shopping centre, CPH shares responsibility for many more people than just its own employees. As a result, CPH works together with its business partners to ensure that the business transacted with them is conducted with respect for each individual worker. For instance, CPH takes an active role in improving the air quality at the airport's maneuvering areas and commits suppliers and concessionaires to the principles of the UN Global Compact.
Employee health, safety and well-being is the core of CPH's approach to employees. CPH is making every effort to ensure that its employees have a safe and secure working environment through a number of measures intended to promote employee well-being and engagement.
Trends in sickness absence are seen as a good indicator of whether the efforts are bearing fruit. As a result, a target has been set: CPH strives for a maximum sickness absence rate of 4.5% by 2020. The sickness absence rate dropped from 4.9% in 2013 to 4.8% in 2014. This reduced rate of sickness absence is the result of CPH's strong focus on following up on absence and an active use of CPH's health clinic by CPH employees. CPH employees are offered health check-ups and advice on exercise, stress, diet as well as abuse, free physiotherapy treatment and access to fitness equipment.
In order to prevent both sickness absence and occupational accidents, CPH launched initiatives in 2014 which are also continuing into 2015. One of these initiatives is a health management training programme for approximately 80 managers, who in 2014 began learning how to tell when employees are stressed and how best to help employees on sick leave return to work. This work will continue in 2015 and, by the end of that year, all managers will have completed this in-house training programme in health management.
Another important working environment indicator is the number of days lost as a result of occupational injuries. CPH's target is to reduce this figure to 13.5 per one million working hours by 2020. CPH recorded an increase in this figure from 15.0 in 2013 (and 15.9 in 2012) to 16.5 in 2014, which was, however, due to an increase in non-serious
PEOPLE
CPH will have a maximum sickness absence rate of 4.5% by 2020.
The reduced rate of sickness absence is the result of CPH's strong focus on following up on absence and an active use of CPH's health clinic by CPH employees.
occupational accidents, whereas the number of serious occupational accidents declined. In the next few years, CPH will have extra focus on accident prevention and information on how to avoid occupational accidents, an initiative that is expected to cut this number further.
On a general level, CPH is responsible for the facilities of the airport area, and in this respect, CPH's responsibility for people is not limited to its own employees. CPH assumes responsibility for the people who work for other employers on the airport premises and is making an active effort to improve the working environment in the airport's apron area. Key to this work is CPH's intense efforts to reduce the amount of ultrafine particles in the air. In 2014, this resulted in a 50% reduction in the annual measured mean value from 2011 to 2014 in the central apron area. This reduction was achieved by pushing aircraft to the taxiways before their engines are started up rather than aircraft starting their engines at the stand and moving to the taxiway on their own. Read more here: www.cph.dk/en/about-cph/csr/ environment-and-energy/air-quality.
Also in 2014, CPH opened a CNG gas filling station in collaboration with HMN Gashandel. In addition, CPH has initially invested in six gas vehicles, and whenever CPH vehicles need replacing in the future, an assessment will be made as to whether or not they should be replaced by gas vehicles. When the facility is completed in 2015, it is expected to also feature a filling station in the airport's landside area.
Development of employee skills is key to CPH's success. Learning takes place both on the job, at in-house and external courses, and in special programmes directed at specific target groups. CPH offered a number of activities in 2014, including a "Talent Releasing Concept", with participation from 18 employees deemed to have promotion potential at CPH, for example to management positions.
Another important area of focus for CPH is its efforts to help employees with reading or spelling difficulties or dyslexia. These employees are offered help in the form of training for dyslexics provided by the trade union 3F, and help with using apps that can, for instance read text out loud or apps that allow them to dictate texts for text messages or e-mails.
PEOPLE
By 2020, CPH will have a maximum of 13.5 occupational injuries per one million working hours.
The increase in occupational injuries is due to a minor increase in non-serious occupational accidents, while the number of serious occupational accidents declined.
An in-house campaign in 2014 helped promote the perception that there is no shame in being dyslexic.
CPH's efforts in employee health, safety and development are reflected in the level of engagement by its employees. CPH conducts an annual employee engagement survey and aims for a target overall score of 83 by 2020 (on a scale from 0-100). In 2014, when the survey participation rate was as high as 94% – up from 87% in 2013 – the survey showed an improvement of its already-high score from 2013.
CPH strives for diversity among the employees and managers because CPH's experience shows that a diverse team can improve results and further enables CPH to meet and serve its diverse customers and passengers.
For this reason, in 2015 CPH will be preparing a diversity strategy that lays down the framework for how it can strengthen and exploit diversity among its employees.
CPH recruits and promotes employees only on the basis of their professional and personal qualifications and skills. Gender, age, religion, ethnicity, sexual orientation or other diversity variables are irrelevant when vacant positions are to be filled.
CPH has defined target figures for the required percentage of women on the Board of Directors and prepared a policy for increasing the number of women at other management levels. In 2014, the percentage of female board members elected by the shareholders was 17%, i.e. one out of six. CPH's target is for the proportion of women on the Board to be 33% in 2017, corresponding to the percentage of women in CPH's general staff in 2012. The gender distribution in the management was 75% men and 25% women, whilst women account for 34% of our general staff. CPH's target is for the percentage of women managers and executives to be in line with the percentage of women in our staff.
To obtain a more equal gender distribution, CPH requires recruiting agencies to present at least one candidate of each gender, if possible, when vacant positions are to be filled, and in job advertisements CPH explicitly invite both men and women to apply. The small change in the balance between female and male managers and executives can, to a great extent, be attributed to a very low turnover in these jobs.
PEOPLE
CPH will have an overall score of 83 in the employee engagement survey by 2020 on a scale from 0-100. See more in the non-financial statement, note 14 at page 114.
At the end of 2014, CPH had 18 apprentices and office trainees and 22 student assistants: a total of 40, which was 18 more than in 2013. The target is that the number of apprentices and office trainees should increase to 21 in 2015.
CPH has in recent years developed a more systematic approach to responsible supplier management. Already in 2013, CPH met its target of committing suppliers behind 89% of its spend to adhere to the CPH Code of Conduct.
In 2014, CPH continued its targeted work to have its suppliers commit to responsible conduct towards their employees, business partners and the environment. All newly established suppliers are required to comply with the guidelines of the CPH Code of Conduct, bringing the proportion of spend to above 90%. CPH strongly urges all its suppliers to sign the UN Global Compact, incorporate its principles and report annually on their progress.
In 2014, CPH began developing a contract management system for monitoring supplier performance also in terms of responsible conduct. The system will form the basis of a systematic effort towards responsible supplier management and will form a strong foundation for continuing to build ever stronger partnerships with CPH's suppliers.
In 2014, CPH also began incorporating the principles of the UN Global Compact in future contracts with the concessionaires at the airport shopping centre. To this end, CPH is currently investigating the possibilities for introducing sanctions in the event of failure to comply.
PLANET
➝ Through energy savings, CPH will save 20% of its energy consumption in 2020 based on 2012 levels.
Climate
Waste
➝ In 2020, CPH will recycle 50% or more of waste from its day-to-day operation of terminal areas, service areas and administration at Copenhagen Airport.
CPH's environmental work ensures that Copenhagen Airport and Roskilde Airport are operated and developed in a responsible manner that enables continuing improvement in our environmental results. This applies both to the global environment where CPH, through targeted work in the field of energy, is working to reduce emissions of CO² , and to the near environment regarding noise, air, waste, soil, water and nature.
CPH's responsibility includes the activities that are under the direct control of CPH's organisation. To the greatest possible extent, CPH also seeks to influence the activities that are beyond its direct control, including the activities under the control of CPH's business partners and customers.
CPH is subject to detailed regulations in the environmental field, and the starting point for CPH's work is always compliance with all statutory and regulatory environmental, climate and energy requirements. CPH has defined strategic targets for certain selected areas of focus that also contribute to responsible growth, including energy, climate and waste. The following is a status report on CPH's strategic targets and other initiatives and results in 2014.
Copenhagen Airport aims for its energy consumption to remain unchanged despite the projected growth. In order to meet this target, CPH is introducing energy-saving measures able to accommodate the expected future growth in passenger numbers.
In recent years, CPH has worked extensively with lighting projects and the integration of LED lighting in existing installations. As this technology is constantly developing and improving, the installation of LED lighting becomes economically viable in more and more places. This is clearly shown by the fact that approximately one-third of the energy savings achieved in 2014 were the result of the change of existing lighting to LED lighting. The largest projects were conducted in the baggage handling facility and in multi-storey carparks, where lighting control concurrently has been optimised.
As in 2013, CPH in 2014 focused on changing much of the airport's old ventilation equipment in Terminal 2 and in Pier C. The old equipment without heat recovery has been replaced with a new ventilation system with highly efficient heat recovery, which especially contributed to the large savings on heating. These savings accounted for
more than one-third of the overall energy savings. The new system also contributed to an improved indoor climate and provides the ability to control the system as needed.
Last but not least, CPH has completed the penultimate stage of CPH's groundwater cooling system (ATES), which has led to a 30% increase in cooling capacity. Hereby, the entire Pier B and Pier C and parts of Terminal 2 are being cooled by the system.
In 2014, CPH's management adopted an updated environmental and climate policy which took effect on 1 January 2015. This updated policy includes guidelines for CPH's work with the environment, climate and energy, all detailed in a single policy. The environmental principles from the UN Global Compact and basic principles for the work with environmental management are now integrated more clearly in the policy. Read the policy here: www.cph.dk/en/ about-cph/csr/environment-and-energy/ environmental-policy.
PLANET
Through energy savings in Copenhagen and Roskilde airport, CPH will save 20% of energy consumption in 2020 based on 2012 levels.
The target requires CPH to carry out energy savings of a total 17 GWh in the period 2013-2020. With the achieved savings of 3.27 GWh in 2014, the total savings for 2013-2014 reached 7.02 GWh.
For a number of years, CPH has focused on monitoring and reducing CO² emissions from the operation of its business. The purpose of the current target for CO² emissions is to disconnect the trend in CO² emissions from the growth in passenger numbers. In 2014, emissions per passenger were 1.2 kg of CO² .
CPH has been accredited to optimisation level
The highest level achievable without buying CO² quotas or the like.
CPH's CO² target includes emissions that can be directly controlled by CPH (scopes 1 and 2, cf. Greenhouse Gas Protocol). Approximately 87% of the sources of these CO² emissions are related to the consumption of power and district heating. CPH's work with energy is consequently key to fulfilling its CO² target.
CO² emissions from business partner activities (scope 3, cf. Greenhouse Gas Protocol), e.g. airline and surface traffic, are partly addressed through Airport Carbon Accreditation (ACA), from which CPH earned a high-level climate certification in 2014. Airports Council International (ACI) is the organisation behind the worldwide Airport Carbon Accreditation programme, and Copenhagen Airport is the first Danish airport to earn this prestigious climate cerfication. CPH has subsequently set a new interim target to be reached by 2020. CPH aims to keep its ACA accreditation at level 3 as a
minimum, implying a carbon footprint of scope 1, 2 and 3, a functional CO² reduction policy and an ongoing dialogue with CPH stakeholders within all three scopes.
CPH's ACA accreditation target is a good example of an area in which CPH seeks to impact the activities that are beyond direct control. CPH is also involved in the association NISA, the Nordic Initiative for Sustainable Aviation, which works towards possibly introducing sustainable jet fuel on the Nordic market on commercial terms. NISA has brought together a number of important players on the Nordic market, for example working in 2014 with the Danish Transport Agency and Brancheforeningen Dansk Luftfart (Danish Aviation) on the report "Sustainable fuels for aviation – an analysis of Danish achievements and opportunities".
Scope 1, 2 and 3 are used in calculating greenhouse gas emissions from different sources. Scope 1 consists of all direct CO² emissions e.g. from use of fuels. Scope 2 are the indirect CO² emissions from consumption of purchased electricity or district heat. Scope 3 are other indirect emissions from activities not owned or controlled by CPH.
CURRENT TARGET STATUS
CPH will be responsible for a maximum emission of 1 kg of CO² per passenger by 2020.
In 2014, CPH succeeded in reaching 1.2 kg. per passenger, continuing the positive trend of the previous two years.
CPH handles a large volume of waste every year, and, with its growth strategy, it is important to ensure that as much waste as possible is recycled. For this reason, CPH set a target in 2014 that at least 50% of the waste from day-to-day operations of the terminal areas, service areas and administration at Copenhagen Airport must be recycled by 2020.
In 2014, 15% of waste from the day-to-day operation was recycled. The total volume of waste increased in 2014 and the share of recycled waste decreased, compared to 2013. This was due to the increase in passenger numbers and the fact that no major changes were made to the way waste is handled. To meet its target of 50% recycling, CPH started a waste programme in 2014 that deploys a number of waste management measures across the organisation. In 2014, time was mainly spent on planning a number of different projects scheduled for implementation in the next few years aimed at meeting the 50% recycling target.
Noise from air traffic and related activities is, naturally, an important area of focus for CPH's environmental work. In 2014, the Danish Environmental Protection Agency issued a reassessed environmental permit for aircraft noise to CPH, as the permit had to be updated and brought in line with current environmental legislation. However, a complaint has been filed by CPH against this reassessed permit, and the issue is currently being considered by the Danish Nature Protection and Environmental Board of Appeal. The older permit will remain in force until the Board of Appeal makes its decision.
CPH completed a thorough renovation of the fire training area in 2014. The result is a fire training area of a very high standard, from both a technical and an environmental perspective. The key environmental aspects are a new mock-up based on gas with a larger collecting area and the option to use second-quality water both for cooling off the mock-up and for filling the fire vehicle tanks.
The weather and especially wind conditions are key in determining which runways are used for take-off or landing. For information on developments in 2012-2014 see the nonfinancial statements note 25 at page 121.
With more than 2,300 employees, CPH is an important contributor of taxes. This applies to taxes expensed by CPH as well as to taxes collected (in transit) by CPH.
As one of Denmark's largest companies, CPH's tax contribution totals DKK 1,136 million annually, which includes corporation taxes, environmental/energy taxes, people taxes, taxes on revenue and property taxes.
CPH and its subsidiaries operate two airports in Denmark and own a hotel, and as such are primarily subject to Danish taxes. One associated company in Denmark is subject to independent taxation.
Copenhagen Airports Denmark ApS (CAD) holds 57.7% of the shares in CPH. CAD is indirectly controlled by Kastrup Airports Parent ApS (KAP), the head of the Danish holding company group. CPH is jointly taxed with these holding companies.
KAP, as the administrative company in the joint taxation scheme, is responsible for the filing of corporation tax returns and related communication with the Danish tax authorities.
In this context, CPH reports to KAP. The tax strategy of CPH relates to CPH and its subsidiaries only, not to the holding companies.
CPH has adopted a clear compliance approach that ensures that both corporation tax and other taxes are reported and paid on a timely basis and according to Danish law. This also applies to taxes collected (in transit).
In 2014, CPH paid DKK 1,136 million in taxes (2013: DKK 1,150 million), of which DKK 295 million was expensed by CPH (2013: DKK 300 million). CPH collected DKK 841 million (2013: DKK 850 million) of taxes (in transit) in the form of VAT on revenue, payroll taxes and environmental and energy taxes, among others. The primary share of the taxes expensed by CPH comprises profit tax (corporation tax1 ) levied on the profits of the Company. Corporation tax amounted to 88% of total taxes expensed by CPH in 2014 (2013: 87%). Other taxes expensed by CPH comprise planet tax2 , people tax3 (payroll tax etc.), VAT4 (product/services), and property taxes5 . People taxes are primarily paid by CPH employees. Public airports in Denmark are generally exempt from property taxes.
In Denmark, the corporation tax rate is 24.5%. In June 2013, the Danish parliament adopted legislation to lower the Danish corporate tax rate from 25% to 22% over the period 2014-2016. The effective tax rate for CPH amounted to 24.1% in 2014 (2013: 16.7%) due to non-deductible expenses including the effect of a limit on deductibility of financial expenses which includes interest swaps. CPH maximises tax depreciation on fixed assets, thus reducing corporation tax payments and increasing deferred tax liability. Approximately half of the tax is paid during the year, while the balance is paid in the following year. CPH pays surcharge interest on the balance. See note 9 in the financial statements for further information.
1 Corporation tax – current corporation tax 2 Environmental/energy taxes levied on CPH / collected from tenants 3 Payroll taxes withheld / payroll taxes paid by employer 4 VAT not refundable / VAT paid by customers 5 Property taxes
| DKK million | 2014 | 2013 | 2012 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Expensed by CPH |
Collected transit |
Total | In% | Expensed by CPH |
Collected transit |
Total | In% | Expensed by CPH |
Collected transit |
Total | In% | |
| Tax contribution | ||||||||||||
| Corporation tax1 | 260 | - | 260 | 23% | 262 | - | 262 | 23% | 298 | - | 298 | 27% |
| Planet2 | 3 | 42 | 45 | 4% | 6 | 26 | 32 | 3% | 8 | 26 | 34 | 3% |
| People3 | 19 | 381 | 400 | 35% | 19 | 373 | 392 | 34% | 17 | 361 | 378 | 34% |
| Product/Services4 | 1 | 423 | 424 | 37% | 1 | 455 | 456 | 39% | 1 | 394 | 395 | 35% |
| Property5 | 12 | (5) | 7 | 1% | 12 | (4) | 8 | 1% | 12 | 1 | 13 | 1% |
| Total | 295 | 841 | 1,136 | 100% | 300 | 850 | 1,150 | 100% | 336 | 782 | 1,118 | 100% |
| In % | 26% | 74% | 100% | 26% | 74% | 100% | 30% | 70% | 100% |
1 Corporation tax – current corporation tax
2 Environmental/energy taxes levied on CPH / collected from tenants
3 Payroll taxes withheld / payroll taxes paid by employer
4 VAT not refundable / VAT paid by customers
5 Property taxes
CPH considers risk management an important element of our management of the Company. Risk management is integrated into CPH's business activities, its purpose being to prepare CPH for certain types of incidents, to reduce uncertainty, to make use of opportunities, and to aid CPH in fulfilling its strategic targets. CPH takes a proactive approach to handling uncertainty and incident management so that CPH can act swiftly and efficiently if specific risks materialise.
CPH defines risks as "uncertain (both positive and negative) future events or developments that could impact CPH's ability to meet its strategic targets". Our approach to risk management is holistic and consistent, ensuring that all risks are handled systematically and with the involvement of relevant competencies across CPH. CPH's method of risk management – including risk identification, analysis and assessment – provides a detailed overview of all material risks and allows CPH to prevent, monitor and handle these risks.
To limit the negative consequences of a given risk, CPH works with a number of reactive measures that include emergency and contingency plans. In addition, CPH has chosen to mitigate the financial consequences of certain risks through insurance.
The overall goal of CPH's risk management is to ensure that there is a balance between risk and return. It is not a question of avoiding risk (risk aversion), but of risk awareness and of identifying and exploiting opportunities and taking the right level of risk that create value for our business and for CPH's stakeholders.
The current perceived risk exposure is integrated into the decision-making processes across the organisation and helps CPH to make decisions that are affected by one or more risks in accordance with the defined level of risk appetite.
CPH's risk management is supported by three sub-goals:
Our risk management is aimed at creating value at the strategic level by providing an overview of CPH's overall risk exposure and risk management activities and generate a certain degree of security.
The ongoing monitoring of internal and external risk enables us to identify early changes in the perceived exposure to risk and to ensure timely handling of risk; it also allows us to roll out continual improvements to both preventive and reactive measures. Finally, it expands our ability to utilise the opportunities that may arise.
The responsibility for risk management at CPH and for supervising how it is handled is entrusted to management. The Board of Directors monitors the regular risk handling through the Audit and Risk Management Committee and has delegated the
responsibility for the continual development and implementation of risk management to the Executive Management. The Board of Directors has defined an overall level of risk appetite and approved CPH's risk management policy.
Reporting on CPH's risks occurs on a quarterly basis to the Executive Management, the Audit and Risk Management Committee, and the Board of Directors. Each risk type is described on a so-called "risk card" and coordinated with the responsible "risk owner"; the card contains all relevant information identified in the risk assessment.
A more detailed description of the governance structure as well as the organisation, roles and responsibilities and risk reporting will be provided under the description of CPH's risk management on CPH's website.
The sections below describe the principal types of risk that could have an impact on CPH and which affected CPH's perceived risk exposure for 2014. With respect to some of the specific types of risk, we refer to sections elsewhere in this annual report and
to the notes in the consolidated financial statements.
As a hub airport, Copenhagen Airport is very dependent on the operating and financial performance of its primary airline clients. SAS is the biggest of Copenhagen Airport's customers and, given its feeder traffic and dense route network to European and overseas destinations, SAS is of considerable importance in Copenhagen Airport retaining its status as northern Europe's hub. In 2014, SAS accounted for about 39.4% (2013: 39.6%) of CPH's aeronautical revenue, 42.1% (2013: 41.8%) of passengers and for 83.3% (2013: 82.1%) of transfer traffic at Copenhagen Airport.
CPH continually monitors developments at SAS and other airlines in order to assess their plans, performance and risks in relation to route development at Copenhagen Airport. Specific contingency plans have been prepared both for SAS and other airlines in order to enable CPH to handle any changes in air traffic. In recent years, CPH has shown strong resilience and regained traffic when routes have been lost.
Due to its status as a hub, Copenhagen Airport has a route network that exceeds what is supported by its catchment area. As a result, if either feeder traffic and/or overseas routes were lost, the risk is that this could have a substantial adverse impact on Copenhagen Airport's status as a hub for some time and, accordingly, on its route network, which could put Copenhagen Airport into a situation of having temporary excess capacity.
The safety of employees and passengers is key to CPH's risk management and consequently has the highest priority and is the key area of focus in its day-to-day activities. As a result, CPH puts considerable effort into ensuring safety and security in order to reduce to the greatest possible extent the probability of incidents occurring. In addition, CPH is subject to a wide variety of regulatory requirements, and its compliance is continually monitored and checked by the Danish Transport Authority. Additional regulatory requirements could result in increased costs for both CPH and its airline customers, falling revenues and/or reductions in capacity. CPH has developed targeted contingency plans to allow it to react at short notice to events that could have a considerable effect on CPH's goals and targets.
As a vital transport hub and a regulated business, CPH has a particular focus on its corporate responsibility. It is of great significance for CPH's legitimacy in operating its business that CPH is – also in the future – perceived as a business with focus on corporate responsibility and runs its business and on ethics and compliance while also creating value for its shareholders and growth and value for society. CPH is aware of the value of a good reputation and in its risk management seeks to ensure that its reputation among its stakeholders does not sustain damage but, rather, is continually improved upon.
Under the current legislation, CPH is obliged to take a long-term and systematic approach to ensure that, in its operations and its development of the airport, it acts responsibly from an environmental perspective. Similarly, it is a statutory requirement that the identification and mitigation of potential environmental risks must be incorporated in projects of a certain size, for example in connection with the expansion of airport facilities. CPH also has an environmental and climate policy to minimise its environmental impact, and CPH is proactive with respect to innovative initiatives that could improve the environment and processes at the airport going forward.
This policy is integrated into CPH's activities and decision-making processes. For additional information on the environment, please see pages 39-43 (under "Non-financial review").
The charges level, which is agreed in a regulated process, has a direct impact on CPH's ability to continue to invest in growth at the same high level as has been the case in recent years. In August 2014, the airlines and CPH signed a new four-year charges agreement to be effective from 1 April 2015. As a result, CPH's aeronautical revenue is fixed for the next four years at a level that supports CPH's investment in continued growth and in maintaining CPH's competitive position.
CPH's financial risk is managed from its head office. The principles and framework governing CPH's financial risk management are laid down at least once a year by the Board of Directors. To read more about how financial risk is managed, see note 18 to the financial statements, pages 92-97.
CPH's share was listed on the NASDAQ OMX Nordic Large Cap segment throughout 2014. The Large Cap segment (excluding C20) consists of companies with a market capitalisation of EUR 1 billion or more.
CPH's investor relations policy is to offer a consistently high level of information on CPH's goals, performance and outlook through an active and open dialogue with shareholders, investors and other stakeholders.
At 31 December 2014, CPH's share capital comprised 7,848,070 shares with a nominal value of DKK 100 each, or a total of DKK 784,807,000. CPH has only one share class, and no shares carry special rights.
The CPH shares are listed on NASDAQ OMX Copenhagen A/S under Securities Code ISIN DK0010201102. Turnover in CPH shares during the 2014 financial year totalled 66 thousand shares, equivalent to 0.8% of the total share capital, or an average of 265 shares per business day. The total value of the shares
traded was DKK 190.8 million. CPH's market capitalisation was DKK 23.5 billion at the end of the financial year compared with DKK 21.9 billion at the end of 2013.
CPH had 3,495 registered shareholders at 31 December 2014.
Jesper Bak Larsen: 15 shares (15 shares at year-end 2013)
No options or warrants have been issued to the members of the Board of Directors or Executive Management. See note 6 to the financial statements on remuneration of members of the Executive Management.
CAD is jointly controlled by the Ontario Teachers' Pension Plan (OTPP) and Macquarie European Infrastructure Fund III (MEIF3). See note 16 to the financial statements on related parties for a further description of OTPP's and MEIF3's ownership of shares in CPH.
The following shareholders held more than 5% of the share capital at 26 February 2015: Copenhagen Airports Denmark ApS (CAD), c/o Visma Services Denmark A/S, Lyskær 3C, 2730 Herlev, and the Danish State.
CPH has not purchased treasury shares since the Annual General Meeting held in April 2014. At the end of the year, CPH held none of its own shares.
The goal of CPH's dividend policy is to create shareholder value. A key element in doing so is the maintenance of an efficient and prudent capital structure that provides funding for business and investment requirements.
In 2014, shareholders and other stakeholders could find updated information on CPH's financial performance at www.cph.dk/en. In addition, two issues of CPH's newsletter to shareholders, CPH News, were distributed in 2014. The annual report for 2014 is available digitally at www.cph.dk/en.
As a result of CPH's ownership structure, no share analysts cover CPH.
CPH is rated by two credit-rating agencies: Fitch (BBB+) and Moody's (Baa2).
As in previous years, CPH has for 2014 chosen to prepare a separate report on corporate governance, including a description of the position CPH takes on the recommendations of the Danish Corporate Governance Committee.
The report also includes a description of the main elements of CPH's internal control and risk management systems in connection with the financial reporting process.
The full report is available on CPH's website at www.cph.dk/en/about-cph/ investor/corporate-governance/ Corporate-Governance-statements.
As to the current composition of the various board committees,please see www.cph.dk/ en/about-cph/investor/corporate-governance for committee membership information.
| Lars Nørby Johansen | David Stanton | Simon Geere | Chris Ireland | Janis Kong | John Bruen |
|---|---|---|---|---|---|
| Danish citizen, born in 1949. Chairman of the Board since 2014. Elected for one year at a time. Independent Board member. |
British citizen, born in 1969. Asset Director at Ontario Airports Invest ments Limited. Member of the Board and Vice Chairman since 2011. Chairman of the Audit and Risk |
British citizen, born in 1968. Managing Director at Macquarie Infrastructure and Real Assets (Europe) Limited. Member of the Board since 2010 and Vice Chairman since 2011. |
Canadian citizen, born in 1970. Director at Ontario Teachers' Pension Plan (OTPP). Member of the Board since 2011. Member of the Audit and Risk Management Committee. |
British citizen, born in 1951. Member of the Board since 2012. Member of the Audit and Risk Management Committee. Elected for one year at a time. Independent Board Member. |
Irish citizen, born in 1972. Managing Director at Macquarie Infrastructure and Real Assets (Europe) Limited (MIRA). Member of the Board since 2014. Elected for one year at a time. |
| BOARD POSITIONS | Management Committee. Elected for one year at a time. |
Member of the Audit and Risk Management Committee. |
Elected for one year at a time. | ||
| Chairman: Falck A/S |
Elected for one year at a time. | BOARD POSITIONS | BOARD POSITIONS | BOARD POSITIONS | |
| William Demant Holding A/S Codan Forsikring A/S |
BOARD POSITIONS | BOARD POSITIONS | Member: | Chairman: Bristol Airport |
Member: Brussels Airport |
| Dansk Vækstkapital The University of Southern Denmark |
Member: Birmingham Airport |
Member: Stockholm-Arlanda Express railway |
InterGen NV | Member: Kingfisher PLC |
Aberdeen Airport Glasgow Airport Southampton Airport |
| Rockwool Foundation Montana |
RELEVANT COMPETENCIES | RELEVANT COMPETENCIES | Network Rail Portmeirion Group PLC |
RELEVANT COMPETENCIES | |
| Deputy Chairman: | Expertise in financial, accounting | RELEVANT COMPETENCIES | Worked with most of OTPP's infrastructure portfolio including |
TUI Group AG | Considerable expertise in the |
| Arp-Hansen Hotel Group | matters and business development and in-depth knowledge of the |
Expertise in business development and commercial operations and |
Brussels, Bristol and Birmingham airports. Previously worked in |
RELEVANT COMPETENCIES | airport sector and now leads the transportation industry group |
| RELEVANT COMPETENCIES | aviation sector. | in-depth knowledge of the aviation sector. |
investment banking and the power generation sector. |
In-depth knowledge of the airport | within MIRA. |
| Previously appointed Chairman of the Copenhagen Stock Exchange Committee on Corporate Govern ance. Previously member of the Board of Directors of Copenhagen Airports A/S from 2000-2002. |
sector achieved through a 33-year career at BAA PLC, where she has held a number of positions, including Chairman of Heathrow Airport Ltd. |
Stig Gellert Ulla Thygesen Jesper Bak Larsen Thomas Woldbye, CEO
Danish citizen, born in 1964. Joined Copenhagen Airports A/S on 1 May 2011 as CEO.
Chairman: Copenhagen Airports International A/S Copenhagen Airports' Hotel and Real Estate Company A/S Center for ledelse, CfL
Danish citizen, born in 1971.
Electrician.
Danish citizen, born in 1965. Firefighter.
Member of the Board since 2007. Elected for four years at a time.
Danish citizen, born in 1968. Security Officer.
Member of the Board since 2007. Elected for four years at a time.
EMPLOYEE REPRESENTATIVE
Member of the Board since 2011. Elected for four years at a time.
| Income statement | 60 |
|---|---|
| Statement of comprehensive income | 60 |
| Balance sheet | 61 |
| Statement of changes in equity | 62 |
| Cash flow statement | 64 |
| Notes to the financial statement | 65 |
| (Supplementary information – not audited) | |
| Statement on position performance | 100 |
| Statement on social performance | 101 |
| Statement on environmental performance | 102 |
| Notes to the non-financial statements | |
| 104 | |
| Global Compact Index | 131 |
| Note | DKK million | 2014 | 2013 |
|---|---|---|---|
| INCOME STATEMENT | |||
| Traffic revenue | 2,249.6 | 2,070.9 | |
| Concession revenue | 1,072.5 | 1,019.4 | |
| Rent | 164.9 | 181.4 | |
| Sale of services, etc. | 380.5 | 372.8 | |
| 3,4 | Revenue | 3,867.5 | 3,644.5 |
| Other income | 1.9 | 1.5 | |
| 5 | External costs | 597.9 | 576.1 |
| 6 | Staff costs | 1,132.4 | 1,074.0 |
| 7 | Amortisation and depreciation | 678.6 | 622.7 |
| Operating profit | 1,460.5 | 1,373.2 | |
| 8 | Financial income | 11.9 | 3.1 |
| 8 | Financial expenses | 209.2 | 204.5 |
| Profit before tax | 1,263.2 | 1,171.8 | |
| 9 | Tax on profit for the year | 304.8 | 195.7 |
| Net profit for the year | 958.4 | 976.1 | |
| 24 | Earnings per DKK 100 share (basic and diluted) | ||
| EPS is stated in Danish kroner | 122.1 | 124.4 |
| Note DKK million |
2014 | 2013 |
|---|---|---|
| STATEMENT OF COMPREHENSIVE INCOME | ||
| Net profit for the year | 958.4 | 976.1 |
| Items that may be reclassified | ||
| to the income statement | ||
| Value adjustments of hedging instruments | 378.4 | (69.1) |
| Value adjustments of hedging instruments transferred to | ||
| financial income and expenses in the income statement | (443.9) | 65.0 |
| Reduction of corporate tax rate from 25% to 22% at | ||
| the beginning of 2014 | (5.6) | - |
| Tax on other comprehensive income | 14.4 | 1.0 |
| Other comprehensive income for the year | (56.7) | (3.1) |
| Total comprehensive income for the year | 901.7 | 973.0 |
| Note | DKK million | 2014 | 2013 |
|---|---|---|---|
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Total intangible assets | 497.0 | 483.9 | |
| Property, plant and equipment | |||
| Land and buildings | 4,437.1 | 4,498.3 | |
| Plant and machinery | 3,469.7 | 3,394.7 | |
| Other fixtures and fittings, tools and equipment | 492.9 | 489.0 | |
| Property, plant and equipment in progress | 527.8 | 287.4 | |
| Total property, plant and equipment | 8,927.5 | 8,669.4 | |
| Financial investments | |||
| Investments in associates | 0.4 | 0.4 | |
| Other financial assets | 0.1 | 0.1 | |
| Total financial investments | 0.5 | 0.5 | |
| Total non-current assets | 9,425.0 | 9,153.8 | |
| CURRENT ASSETS | |||
| Receivables | |||
| Trade receivables | 332.4 | 298.6 | |
| Other receivables | 28.5 | 7.6 | |
| Prepayments | 54.7 | 62.2 | |
| Total receivables | 415.6 | 368.4 | |
| Cash | 47.1 | 37.0 | |
| Total current assets | 462.7 | 405.4 | |
| Total assets | 9,887.7 | 9,559.2 |
| Note | DKK million | 2014 | 2013 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| EQUITY | |||
| Share capital | 784.8 | 784.8 | |
| Reserve for hedging | (196.8) | (140.1) | |
| Retained earnings | 2,257.1 | 2,255.9 | |
| Total equity | 2,845.1 | 2,900.6 | |
| 9 | NON-CURRENT LIABILITIES Deferred tax |
928.5 | 892.1 |
| 13 | Financial institutions and other loans | 4,044.4 | 4,173.1 |
| 18 | Other payables | 196.1 | 618.4 |
| Total non-current liabilities | 5,169.0 | 5,683.6 | |
| CURRENT LIABILITIES | |||
| 13 | Financial institutions and other loans | 690.3 | 30.8 |
| Prepayments from customers | 226.7 | 169.2 | |
| Trade payables | 440.0 | 328.0 | |
| 9 | Income tax | 155.1 | 170.5 |
| 14,18 | Other payables | 351.0 | 268.2 |
| Deferred income | 10.5 | 8.3 | |
| Total current liabilities | 1,873.6 | 975.0 | |
| Total liabilities | 7,042.6 | 6,658.6 | |
| Total equity and liabilities | 9,887.7 | 9,559.2 |
For more information see notes overview on page 65.
Note
| DKK million | Share capital |
Reserve for hedging |
Retained earnings |
Total |
|---|---|---|---|---|
| Equity at 1 January 2014 | 784.8 | (140.1) | 2,255.9 | 2,900.6 |
| Comprehensive income for the year | ||||
| Net profit for the year | - | - | 958.4 | 958.4 |
| Other comprehensive income | ||||
| Adjustment of corporate tax rate from 25% to 22% 1 January 2014 | - | (5.6) | - | (5.6) |
| Value adjustments of hedging instruments | - | 295.1 | - | 295.1 |
| Value adjustments of hedging instruments transferred to financial | ||||
| income and expenses in the income statement | - | (346.2) | - | (346.2) |
| Total other comprehensive income | - | (56.7) | - | (56.7) |
| Total comprehensive income for the year | - | (56.7) | 958.4 | 901.7 |
| Transactions with owners | ||||
| Dividends paid | - | - | (957.2) | (957.2) |
| Total transactions with owners | - | - | (957.2) | (957.2) |
| Equity at 31 December 2014 | 784.8 | (196.8) | 2,257.1 | 2,845.1 |
See the Parent Company's statement of equity with respect to which reserves are available for distribution. Dividend per share is stated under group financial highlights and key ratios on page 18. Retained earnings include proposed dividends of DKK 522.4 million. Proposed dividend per share amounts to DKK 66.57. Based on the interim profit for the six months ended 30 June 2014, an interim dividend of DKK 436.0 million was distributed on 18 August 2014, equivalent to DKK 55.56 per share. Dividend paid in 2014 consists of dividend in respect of 2013 of DKK 521.2 million and dividend in respect of 2014 of DKK 436.0 million. Disclosures about capital are stated in Shareholder information, on pages 50-52.
Note
| DKK million | Share capital |
Reserve for hedging |
Retained earnings |
Total |
|---|---|---|---|---|
| Equity at 1 January 2013 | 784.8 | (137.0) | 2,954.4 | 3,602,2 |
| Comprehensive income for the year | ||||
| Net profit for the year | - | - | 976.1 | 976,1 |
| Other comprehensive income | ||||
| Value adjustments of hedging instruments | - | (51.8) | - | (51,8) |
| Value adjustments of hedging instruments transferred to financial | ||||
| income and expenses in the income statement | - | 48.7 | - | 48,7 |
| Total other comprehensive income | - | (3.1) | - | (3,1) |
| Total comprehensive income for the year | - | (3.1) | 976.1 | 973,0 |
| Transactions with owners | ||||
| Dividends paid | - | - | (1,674.6) | (1,674,6) |
| Total transactions with owners | - | - | (1,674.6) | (1,674,6) |
| Equity at 31 December 2013 | 784.8 | (140.1) | 2,255.9 | 2,900,6 |
See the Parent Company's statement of equity with respect to which reserves are available for distribution. Dividend per share is stated under group financial highlights and key ratios on page 18. Retained earnings include proposed dividends of DKK 521.2 million. Proposed dividend per share amounts to DKK 66.41. Based on the interim profit for the six months ended 30 June 2013, an interim dividend of DKK 454.9 million was distributed on 19 August 2013, equivalent to DKK 57.96 per share. Dividend paid in 2013 consists of dividend in respect of 2012 of DKK 1,219.7 million and dividend in respect of 2013 of DKK 454.9 million. Disclosures about capital are stated in Shareholder information, on pages 50-52.
| Note | DKK million | 2014 | 2013 |
|---|---|---|---|
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| 19 | Received from customers | 3,883.8 | 3,705.4 |
| 20 | Paid to staff, suppliers, etc. | (1,581.8) | (1,794.0) |
| Cash flow from operating activities before financial | |||
| items and tax | 2,302.0 | 1,911.4 | |
| 21 | Interest received, etc. | 11.2 | 1.9 |
| 22 | Interest paid, etc. | (232.8) | (239.4) |
| Cash flow from operating activities before tax | 2,080.4 | 1,673.9 | |
| Income taxes paid | (274.9) | (290.1) | |
| Cash flow from operating activities | 1,805.5 | 1,383.8 | |
| CASH FLOW FROM INVESTING ACTIVITIES | |||
| 11 | Payments for property, plant and equipment | (789.3) | (739.1) |
| Payments for intangible assets | (134.8) | (172.3) | |
| Sales of property, plant and equipment | 2.2 | 1.7 | |
| Cash flow from investing activities | (921.9) | (909.7) |
| DKK million | 2014 | 2013 |
|---|---|---|
| CASH FLOW FROM FINANCING ACTIVITIES | ||
| Repayments of long-term loans | (963.2) | (1,068.9) |
| Proceeds from long-term loans | 1,000.0 | 1,456.1 |
| Repayments of short-term loans | (142.7) | (73.4) |
| Proceeds from short-term loans | 189.6 | 90.9 |
| Dividends paid | (957.2) | (1,674.6) |
| Cash flow from financing activities | (873.5) | (1,269.9) |
| Net cash flow for the year | 10.1 | (795.8) |
| Cash at beginning of year | 37.0 | 832.8 |
| Cash at the end of the year | 47.1 | 37.0 |
➭ Contains accounting policies
➭ ➭ ➭ ➭
➭
➭ Contains significant estimates and judgments
| 1 | Summary of significant accounting policies | 66 | ➭ |
|---|---|---|---|
| 2 | One-off items | 68 | ➭ |
| 3 | Segmental information | 70 | ➭ |
| 4 | Revenue | 72 | ➭ |
| 5 | External costs | 74 | ➭ |
| 6 | Staff costs | 74 | ➭ |
| 7 | Amortisation and depreciation | 76 | ➭ |
| 8 | Financial income and expenses | 76 | ➭ |
| 9 | Tax on profit for the year | 78 | ➭ |
| 10 | Intangible assets | 80 | ➭ |
| 11 | Property, plant and equipment | 82 | ➭ |
| 12 | Trade receivables | 86 | ➭ |
| 13 | Financial institutions and other loans | 87 | ➭ |
| 14 | Other liabilities | 89 | ➭ |
| 15 | Financial commitments | 89 | |
| 16 | Related parties | 90 | |
| 17 | Concession for airport operation and charges regulation | 90 | |
| 18 | Financial risks | 92 | ➭ |
| 19 | Received from customers | 97 | |
| 20 | Paid to staff, suppliers, etc. | 97 | |
| 21 | Interest received, etc. | 98 | |
| 22 | Interest paid, etc. | 98 | |
| 23 | Subsequent events | 98 | |
| 24 | Capital and EPS | 98 | |
| 25 | Subsidiaries and associated companies | 99 | |
| 26 | Latest adopted accounting standards and interpretations | ||
| for implementation | 99 |
To make the report more manageable and readable, the accounting policies, and estimates and judgments for specific items have been moved to the appropriate note, and all information related to the item is now in one place.
CPH is a limited company domiciled in Denmark and listed on NASDAX OMX.
The consolidated financial statements of CPH are prepared in accordance with the International Financial reporting Standards (IFRS) as adopted by the European Union (EU) and additional Danish disclosure requirements to listed companies.
The additional Danish disclosure requirements are stated in the Danish Statutory Order on Adoption of IFRS issued in pursuance of the Danish Financial Statements Act and the rules issued by NASDAX OMX.
The financial statements of the Parent Company, Copenhagen Airports A/S, are prepared in accordance with the Danish Financial Statements Act.
The accounting policies, including presentation, are unchanged from those applied in the 2013 Annual Report except for the below mentioned changes.
CPH has assessed the impact of the new IFRS standards and interpretations. CPH has concluded that all current standards and interpretations which have been in force for the financial year 2014 are either not relevant to CPH or have no significant impact on the financial statements of the Group.
The estimates made by CPH in the determination of the carrying amounts of assets and liabilities are based on assumptions that are subject to future events. These include, among other things, estimates of the useful lives of intangible
assets and property, plant and equipment and their residual values. Estimates and underlying assumptions are based on historical data and a number of other factors that Management considers relevant under the given circumstances. The carrying amounts of these items are disclosed in notes 10 and 11.
A number of estimates of cash flows and discount factors are made when assessing the need for impairment.
For a description of CPH's risks, see note 18 on financial risks.
The Group Annual Financial Statements is prepared under the historical cost principle. Assets and liabilities are subsequently measured as described below.
The Group Annual Report comprises the Parent Company, Copenhagen Airports A/S, and companies in which the Parent Company directly or indirectly controls the majority of the votes or in any other way controls the companies (subsidiaries). Companies in which CPH controls less than 50% of the votes and does not have control but exercises a significant influence are considered associates.
In the consolidation, intercompany income and expenses, shareholdings, dividends and balances, and realised and unrealised intercompany gains and losses on transactions between the consolidated companies are eliminated.
CPH's Group Annual Report is prepared on the basis of the financial statements of the Parent Company and the subsidiaries. The financial statements used in the consolidation are prepared in accordance with CPH's accounting policies.
Other income contains items of a secondary nature compared to CPH's activities, including gains and losses on sales of assets.
CPH's functional currency is Danish kroner. This currency is used as the measurement and presentation currency in the preparation of the Annual Report. Therefore, other currencies than Danish kroner are considered foreign currencies.
Transactions denominated in foreign currencies are translated at the exchange rate ruling at the transaction date. Gains and losses arising as a result of differences between the exchange rate at the transaction date and the exchange rate at the date of payment are recognised in the income statement as financial income or financial expenses.
Receivables, payables and other monetary items denominated in foreign currencies that have not been settled on the balance sheet date are translated at the exchange rates ruling at the balance sheet date. Differences between the exchange rate ruling at the balance sheet date and at the transaction date are recognised in the income statement as financial income or financial expenses.
Investments in associates are recognised and measured in the consolidated financial statements according to the equity method. In the income statement, the proportionate share of the profit after tax for the year is recognised under the line item Profit/(loss) from investments in associates after tax.
Gains and losses on the divestment of associates are determined as the difference between the sales price and the carrying amount of the net assets at the date of divestment including goodwill less anticipated costs involved in the divestment. Exchange differences regarding associates recognised in other comprehensive income are recycled on the divestment of associates and included in gains or losses. Gains or losses are recognised in the income statement.
CPH presents comprehensive income in two statements. An income statement and a statement of comprehensive income showing the results of operations for the year and income included in other comprehensive income. Other comprehensive income comprises exchange rate adjustments, adjustments of investments in associates and hedging transactions. Tax related to other comprehensive income for the individual items is disclosed in the notes to the financial statements.
Dividends expected to be declared in respect of the year are stated under equity. Dividends are recognised as a liability at the time of adoption by the shareholders in general meeting.
Prepayments recognised under assets comprise costs incurred relating to the following financial year and are measured at nominal value.
Deferred income recognised under liabilities comprises payments received relating to income in subsequent financial years and is measured at nominal value.
The cash flow statement shows CPH's cash flows for the year distributed on operating, investing and financing activities, net changes for the year in cash as well as CPH's cash at the beginning and end of the year.
Cash includes cash and balances in accounts at no or short notice.
The cash flow from operating activities comprises payments from customers less payments to employees, suppliers etc., adjusted for financial items paid and income taxes paid.
1
The cash flow from investing activities comprises cash flows from the purchase and sale of intangible assets, property, plant and equipment and financial investments, including acquisitions, and dividends received from associates.
The cash flow from financing activities comprises cash flows from the raising and repayment of long-term and short-term debt to financial institutions as well as payments to shareholders.
One-off items comprise revenue and expenses of an exceptional nature relative to CPH's operating activities, such as costs incurred for structuring of processes and structural adjustments as well as any gains and losses on divestments related thereto and which, over time, are of material importance. Moreover, other amounts of a one-off nature are included in this line item, including gains on the divestment of operations.
| Note | ||||
|---|---|---|---|---|
| 2 | 2014 | Including | One-off | Excluding |
| DKK million | one-off items |
items | one-off items |
|
| 3, 4 | Revenue | 3,867.5 | - | 3,867.5 |
| Other income | 1.9 | - | 1.9 | |
| 5 | External costs | 597.9 | (8.9) | 589.0 |
| 6 | Staff costs | 1,132.4 | (6.9) | 1,125.5 |
| EBITDA | 2,139.1 | 15.8 | 2,154.9 | |
| 7 | Amortisation and depreciation | 678.6 | - | 678.6 |
| Profit before interest and tax | 1,460.5 | 15.8 | 1,476.3 | |
| 8 | Net financing costs | 197.3 | - | 197.3 |
| Profit before tax | 1,263.2 | 15.8 | 1,279.0 | |
| 9 | Tax on profit of the year | 304.8 | 3.9 | 308.7 |
| Profit after tax | 958.4 | 11.9 | 970.3 |
| Note | ||||
|---|---|---|---|---|
| 2013 | Including | One-off | Excluding | |
| DKK million | one-off items |
items | one-off items |
|
| 3, 4 | Revenue | 3,644.5 | - | 3,644.5 |
| Other income | 1.5 | - | 1.5 | |
| 5 | External costs | 576.1 | (6.0) | 570.1 |
| 6 | Staff costs | 1,074.0 | (6.4) | 1,067.6 |
| EBITDA | 1,995.9 | 12.4 | 2,008.3 | |
| 7 | Amortisation and depreciation | 622.7 | - | 622.7 |
| Profit before interest and tax | 1,373.2 | 12.4 | 1,385.6 | |
| 8 | Net financing costs | 201.4 | - | 201.4 |
| Profit before tax | 1,171.8 | 12.4 | 1,184.2 | |
| 9 | Tax on profit of the year | 195.7 | 3.1 | 198.8 |
| Profit after tax | 976.1 | 9.3 | 985.4 | |
The accounting policy for recognition and measurement of segmental information is the same as for the income statement and balance sheet.
The operating results of the segments comprise directly attributable revenue less related operating costs. Operating costs comprise External costs, Staff costs and Amortisation and depreciation.
Segment assets comprise non-current assets used directly in the operating activities of each segment and current assets directly attributable to the operating activities of each segment, including Trade receivables, Other receivables, Prepayments and Deferred income. Jointly used properties are allocated to the segments on the basis of an overall assumption of the amount of space used.
Segment liabilities comprise liabilities that have arisen out of the segment operations, including Prepayments received from customers, Trade payables and Other payables.
CPH has two segments: Aeronautical and Non-aeronautical.
The segmental classification follows the legal and organisational classification of the Group activities, and the aeronautical segment comprises the regulated part (traffic charges) of Copenhagen Airports. The non-aeronautical segment comprises all other activities. This classification is appropriate, as the aeronautical segment reporting at the same time equals the reporting of the regulatory activities under BL 9-15 (traffic charges). BL 9-15 is described in note 17.
The operations and functions which the airports at Kastrup and Roskilde make available so that airlines can operate their flights, including facilities required for the passengers' traffic through these airports. Revenue in the aeronautical segment comprises passenger, security, take-off and parking charges and other income, including handling and CUTE.
The facilities and services provided at the airports to passengers and others, including parking facilities, shops, restaurants, rest areas, lounges and the hotel. The vast majority of the operations are operated by concessionaires. Furthermore, the business area comprises the segment engaged in leasing of CPH's buildings, premises and land to non-Group lessees. Revenue in the non-aeronautical segment comprises concession revenue, rent from buildings, premises and land, revenue from parking, hotel operation, PRM services, sales of consulting services concerning airport operation and other services.
Revenue related to CPH's largest customer amounted to DKK 1,014.2 million in 2014 (2013: DKK 966.0 million) representing 26.2% of revenue in 2014 (2013: 26.5%). The revenue relates to the two business areas Aeronautical and Nonaeronautical. Revenue related to the second largest customer amounted to DKK 390.9 million in 2014 (2013: DKK 376.0 million) representing 10.1% of revenue in 2014 (2013: 10.3%). The revenue relates to the Non-aeronautical business.
| Note | |||
|---|---|---|---|
| 2014 | Business areas | ||
| DKK million | Aeronautical | Non aeronautical |
Total |
| Revenue | 2,249.6 | 1,617.9 | 3,867.5 |
| Operating profit | 413.7 | 1,046.8 | 1,460.5 |
| Non-current assets | 6,719.6 | 2,704.9 | 9,424.5 |
| Other assets | 235.8 | 179.8 | 415.6 |
| Investments in associates | 0.4 | 0.4 | |
| Non-allocated assets* | 47.2 | ||
| Total assets | 6,955.4 | 2,885.1 | 9,887.7 |
| Liabilities | 568.2 | 416.1 | 984.3 |
| Non-allocated liabilities** | 6,058.3 | ||
| Total liabilities | 568.2 | 416.1 | 7,042.6 |
| Investments in fixed assets | |||
| (including capitalised interests) Amortisation and depreciation |
748.4 540.1 |
201.7 138.5 |
950.1 678.6 |
* Non-allocated assets include cash and financial assets.
** The Non-allocated liabilities include deferred taxes, credit institutions and other loans, other longterm liabilities and income tax payable.
Note
Revenue comprises the year's traffic revenue, rent, concession revenue and sales of services, net of value added tax and price reductions directly related to sales. Please see the section on segmental information in note 3 Segmental information.
Traffic revenue comprises passenger, security, take-off and parking charges, handling and CUTE charges (IT technology used in connection with check-in) and is recognised when the related services are provided. Start-up discounts for previously unserved routes are deducted in the traffic revenue. The NOX charge is included in take-off charges.
Concession revenue comprises sales-related revenue from Copenhagen Airport's shopping centre, which is recognised in line with the revenue generated by the concessionaires. Revenue from parking facilities is recognised upon completion of parking (exit).
Rent comprises rent for buildings and land and is recognised over the terms of the contracts.
Revenue from Sales of services, etc. comprises revenue from the hotel operation and other activities, including services to persons with reduced mobility (PRM), which is recognised when delivery of the services takes place.
| 2014 | 2013 |
|---|---|
| 397.5 | |
| 969.6 | |
| 525.9 | 480.2 |
| 182.8 | 167.7 |
| 58.5 | 55.9 |
| 2,249.6 | 2,070.9 |
| 705.6 | 675.9 |
| 314.5 | 295.6 |
| 52.4 | 47.9 |
| 1,072.5 | 1,019.4 |
| 107.1 | 123.5 |
| 50.7 | 50.3 |
| 7.1 | 7.6 |
| 164.9 | 181.4 |
| 206.2 | 196.1 |
| 174.3 | 176.7 |
| 380.5 | 372.8 |
| 3,644.5 | |
| 420.6 1,061.8 3,867.5 |
| DKK million | 2014 | 2013 |
|---|---|---|
| RENT RELATING TO LEASES INTERMINABLE | ||
| BY LESSEE | ||
| Within 1 year | 112.8 | 108.2 |
| Between 1 and 5 years | 146.1 | 151.9 |
| After 5 years | 166.9 | 157.6 |
| Total | 425.8 | 417.7 |
Concession charges (minimum charges) related to shopping centre and other concessions are subject to the level of activity. Consequently it is not possible to determine the present value thereof.
CPH's revenue contains only services related to the aeronautical and nonaeronautical segment.
External costs comprise administrative expenses, sales and marketing expenses and other operating and maintenance costs.
| DKK million | 2014 | 2013 |
|---|---|---|
| Operation and maintenance | 393.9 | 392.7 |
| Energy | 69.4 | 69.2 |
| Administration | 112.7 | 95.2 |
| Other | 21.9 | 19.0 |
| Total external costs | 597.9 | 576.1 |
Audit fee to PwC, the auditors appointed at the annual general meeting, amounted to DKK 1.4 million (2013: DKK 1.4 million). Fees for assurance engagements other than audit amounted to DKK 0.2 million (2013: DKK 0.1 million), for tax advice DKK 0.1 million (2013: DKK 0.1 million) and fees to PwC for non-audit services amounted to DKK 0.7 million (2013: DKK 0.6 million).
In 2014, CPH incurred one-off costs of DKK 8.9 million mainly related to restructuring and charges regulation (2013: DKK 6.0 million). See note 2 for an overview of one-off items.
Staff costs comprise salaries, wages and pensions to CPH staff including the Executive Management and emoluments to the Board of Directors as well as other staff costs.
Regular pension contributions under defined contribution plans are recognised in the income statement in the period in which they arise. For civil servants seconded by the Danish State, CPH recognises a pension contribution in the income statement, which is fixed each year by the State and paid to the State on a regular basis.
| DKK million | 2014 | 2013 |
|---|---|---|
| Salaries and wages | 1,109.5 | 1,059.1 |
| Pensions | 93.8 | 90.3 |
| Other social security costs | 8.2 | 7.9 |
| Other staff costs | 58.2 | 53.4 |
| 1,269.7 | 1,210.7 | |
| Less amount capitalised as fixed assets | 137.3 | 136.7 |
| Total staff costs | 1,132.4 | 1,074.0 |
| Cash emoluments to Executive Management including | ||
| pension, company cars, etc. | 6.0 | 5.8 |
| Provision for short-term incentive plan for members of | ||
| the Executive Management, see below | 3.2 | 2.9 |
| Provision for long-term incentive plan for members of | ||
| the Executive Management, see below | 2.3 | 2.3 |
| Emoluments to the Board of Directors, including | ||
| board committees | 2.3 | 2.3 |
6 Out of the salaries to the members of the Executive Management, employeradministered pensions accounted for DKK 0.9 million (2013: DKK 0.9 million).
Emoluments to the Board of Directors in 2014 comprised DKK 245,000 to the former Chairman, Henrik Gürtler, DKK 655,000 to the current Chairman, Lars Nørby Johansen, DKK 300,000 to staff representatives, and DKK 300,000 to Janis Kong. In 2014, the other Board members who are not staff representatives have decided to renounce their emoluments.
Emoluments to the Audit and Risk Management Committee in 2014 comprised DKK 150,000 to Janis Kong. In 2014, the other members of the Audit and Risk Management Committee have decided to renounce their emoluments.
The remuneration of members of the Executive Management consists of a fixed basic salary (including pension), certain benefits (free company cars, etc.) and incentive plans, which are described below. Pension contributions to members of the Executive Management are paid in regularly to private pension companies. CPH has no liabilities related thereto.
In case of termination of employment by CPH, members of the Executive Management are entitled to a maximum of 12 months' salary and a maximum of 24 months' severance payment.
The total remuneration in 2014 to the members of the Executive Management was DKK 11.5 million (2013: DKK 11.0 million). This contains a cash emolument of DKK 6.0 million (2013: DKK 5.8 million), provision for short-term incentive plans of DKK 3.2 million (2013: DKK 2.9 million), provisions for potential payout of long-term incentive plan of DKK 2.3 million (2013: DKK 2.3 million). Provision is made for payment of the maximum incentive payment. This is subject to considerable uncertainty, as it requires that the performance exceeds the targets set.
Short-term bonus agreements have terms of up to one year. The target of the short-term bonus agreements is 50% of the executive's fixed annual salary and the value may total up to a maximum of 75% if targets are exceeded.
In order to promote a good long-term behaviour, a rolling three-year plan has been introduced for the Executive Management. Payments under this three-year incentive plan cannot exceed 6 months' salary for the Executive Management.
The remuneration of the Board of Directors and Executive Management in 2014 was made in accordance with the "General guidelines for remuneration to the Board of Directors and Executive Management of Copenhagen Airports A/S".
The average number of people employed by CPH in 2014 was 2,170 full-time equivalents (2013: 2,122 full-time equivalents). The figure includes 32 civil servants who, pursuant to the Copenhagen Airports Act, have retained their employment with the State (2013: 37 civil servants).
CPH makes annual pension contributions to the Danish State. The contributions are paid for the employees who, under their contracts of employment, are entitled to pension from the Danish State. The rate of pension contributions is fixed by the Minister of Finance and amounted to 21.2% in 2014 (2013: 21.2%). In 2014, the pension contribution amounted to DKK 1.7 million (2013: DKK 1.9 million). CPH has no further liabilities related thereto.
In 2014, CPH incurred one-off costs of DKK 6.9 million (2013: DKK 6.4 million) related to restructuring, including redundancy payments. See note 2 for an overview of one-off items.
Amortisation and depreciation comprises the year's charges for this purpose on CPH's intangible assets and property, plant and equipment.
| DKK million | 2014 | 2013 |
|---|---|---|
| Software | 121.7 | 97.0 |
| Land and buildings | 178.2 | 174.8 |
| Plant and machinery | 254.6 | 231.0 |
| Other fixtures and fittings, tools and equipment | 124.1 | 119.9 |
| Total amortisation and depreciation | 678.6 | 622.7 |
See note 10 and 11 for information about useful lives.
Financial income and expenses include interest, realised and unrealised exchange differences, recycled accumulated gains and losses on swaps related to terminated hedges, amortisation of mortgage loans and other loans, including reversal of fair value adjustments of effective hedges of loans, supplements and allowances under the on-account tax scheme. Fair value adjustment of interest elements of swaps classified as a cash flow hedge for accounting purposes are recognised in comprehensive income.
| DKK million | 2014 | 2013 |
|---|---|---|
| FINANCIAL INCOME | ||
| Interest on balances with banks, etc. | - | 0.4 |
| Interest on other receivables | 10.9 | 1.2 |
| Net exchange gains | 1.0 | 0.6 |
| Gains on forward exchange contracts | - | 0.9 |
| Total financial income | 11.9 | 3.1 |
Financial income increased by DKK 8.8 million, primarily due to the court ruling in the PRM trial supporting CPH's basis for collecting fees as well as the rates applied. The ruling also awarded CPH the right to interest.
Gains on forward exchange contracts mainly consist of realised and unrealised gains on hedges of cash flows in the non-aeronautical business.
| DKK million | 2014 | 2013 |
|---|---|---|
| FINANCIAL EXPENSES | ||
| Interest on debt to financial institutions and | ||
| other loans, etc. | 214.3 | 216.4 |
| Capitalised interest expenses regarding assets | ||
| under construction | (26.1) | (36.4) |
| Exchange losses | 0.9 | 1.3 |
| Loss on forward exchange contracts | - | 0.9 |
| Other financing costs | 11.6 | 16.8 |
| Amortisation of loan costs | 8.5 | 5.5 |
| Total financial expenses | 209.2 | 204.5 |
In the calculation of loan costs for the cost of assets, an effective rate of interest of 5.5% was applied in 2014 (2013: 6.0%), corresponding to CPH's weighted average cost of capital of borrowings for purchases of property, plant and equipment. No specific loans have been raised for the construction or development of assets.
As stated in note 18 on financial risks under Currency Swaps and Hedging transactions, CPH uses currency swaps to hedge foreign currency loans so that the exchange rate exposure to interest as well as principal is converted from the foreign currency into fixed payments in DKK throughout the terms of the respective loans. The loans in question have been fully hedged.
Exchange rate adjustment of loans as well as currency swaps (for loan principals) are recognised in financial income/expenses in the income statement in a net amount of zero, as the exchange rate adjustment of the loans is fully balanced off by an opposite exchange rate adjustment of the currency swaps.
The net amount of exchange losses recognised in 2014 includes an unrealised exchange loss of DKK 443.9 million (2013: unrealised exchange gain of DKK 65.0 million) related to long-term loans denominated in USD and GBP offset by an unrealised exchange gain on currency swaps of DKK 443.9 million (2013: an unrealised exchange loss of DKK 65.0 million) relating to the same loan.
Losses on forward exchange contracts mainly consist of realised and unrealised losses on hedges of non-aeronautical cash flows.
Other financing costs mainly consist of commitment fees which CPH pays to have committed credit facilities available.
Amortisation of loan costs relates primarily to costs in connection with the establishment of bank facilities in 2013 and bond issues in 2003, 2010 and 2013.
Copenhagen Airports A/S is taxed jointly with Kastrup Airports Parent ApS (KAP), Copenhagen Airports Denmark Holding ApS (CADH) and Copenhagen Airports Denmark ApS (CAD) and the two wholly-owned subsidiaries Copenhagen Airports International A/S (CAI) and Copenhagen Airports' Hotel and Real Estate Company A/S (KLHE). KAP is a management company for the jointly taxed companies and settles corporate taxes to the tax authorities. CPH, CAI and KLHE pay tax on account to KAP and settle tax underpaid/overpaid with KAP when the annual notices of assessment are received from the tax authorities.
Income tax for the year, consisting of the year's current tax and the year's deferred tax, is recognised in the income statement as regards the amount that can be attributed to the profit for the year, and posted directly in other comprehensive income as regards the amount that can be attributed to movements therein.
Current tax liabilities are carried on the balance sheet as Current liabilities to the extent such items have not been paid. Tax overpaid on account is included as a separate line item under Receivables. Interest and allowances regarding tax payments are recognised under Financial income or Financial expenses.
Deferred tax is calculated according to the balance sheet liability method on all temporary differences between the accounting and tax value of assets and liabilities.
Total
Deferred tax is calculated on the basis of the tax rules and tax rates that will apply under the legislation in force at the balance sheet date when the deferred tax item is expected to crystallise as current tax. Changes in deferred tax resulting from changes in tax rates are recognised in the income statement.
Deferred tax assets are recognised in the balance sheet at the value at which they are expected to be realisable.
| DKK million | 2014 | 2013 |
|---|---|---|
| TAX EXPENSE | ||
| Current income tax | 259.6 | 261.6 |
| Change in deferred tax charge | 36.4 | (66.9) |
| Total | 296.0 | 194.7 |
| TAX IS ALLOCATED AS FOLLOWS: | ||
| Tax on profit for the year | 304.8 | 195.7 |
| Tax on other comprehensive income related to | ||
| hedging instruments | (8.8) | (1.0) |
194.7
296.0
| DKK million | 2014 | 2013 |
|---|---|---|
| BREAKDOWN OF TAX ON PROFIT FOR THE YEAR | ||
| Tax calculated at 24.5% of profit before tax (2013: 25%) | 309.5 | 293.0 |
| Reduction of corporate tax rate from 25% to 22% | ||
| until 2016 | - | (115.1) |
| Tax effect of: | ||
| Non-deductible costs including effect of interest limitation | (4.7) | 17.8 |
| Total | 304.8 | 195.7 |
| PROVISION FOR DEFERRED TAX | ||
| Balance at 1 January | 892.1 | 959.0 |
| Reduction of corporate tax rate from 25% to 22% | ||
| until 2016 | - | (115.1) |
| Change in deferred tax charge | 36.4 | 48.2 |
| Balance at 31 December | 928.5 | 892.1 |
| BREAKDOWN OF DEFERRED TAX PROVISION: | ||
| Property, plant and equipment | 904.7 | 871.9 |
| Other receivables | (1.7) | 0.8 |
| Other payables | 25.5 | 19.4 |
| Total | 928.5 | 892.1 |
| DKK million | 2014 | 2013 |
|---|---|---|
| INCOME TAX PAYABLE | ||
| Balance at 1 January | 170.5 | 199.0 |
| Tax paid on account in current year | (116.5) | (91.1) |
| Payment of tax underpaid in previous year | (158.5) | (199.0) |
| Current income tax | 259.6 | 261.6 |
| Balance at 31 December | 155.1 | 170.5 |
Of the deferred tax liability, DKK 0 million is expected to be settled within the next 12 months (2013: DKK 0 million), while DKK 928.5 million of the deferred tax liability is expected to be settled after more than 12 months (2013: DKK 892.1 million).
The Company is subject to interest limitation rules. As a result of the uncertainty regarding the utilisation of interest costs carried forward, the Company has decided not to recognise the tax base of the interest expenses carried forward. The tax base of the interest costs carried forward is DKK 32.9 million (2013: DKK 49.8 million).
From 1 July 2012, Copenhagen Airports A/S has had a subsidiary liability for the tax liabilities of the Danish holding companies, which hold 57.7% of the shares of the Company. The latter liability is limited to 57.7% of tax liabilities payable on or after 1 July 2012.
In 2014, CPH incurred one-off tax expenses of DKK 3.9 million (2013: one-off tax expense of DKK 3.1 million).
Major projects in which software is the principal element are recognised as assets if there is sufficient certainty that the capitalised value of future earnings can cover the related costs.
Software primarily comprises external costs and other directly attributable costs.
Amortisation is charged on a straight-line basis commencing when the project is ready for use. The amortisation period is 3-10 years.
The carrying amount of intangible assets is tested at least annually for any indications of impairment of the value beyond what is expressed in the amortisation or depreciation charges. If that is the case, an impairment charge is taken against the recoverable amount of the assets, if that is lower than the carrying amount.
The recoverable amount of the asset is determined as the higher of the net selling price and the value in use. If it is not possible to determine a recoverable amount for the individual assets, the assets are assessed together in the smallest group of assets for which a reliable recoverable amount can be determined in an overall assessment.
The estimated useful lives are determined based on historical experience and expectations of future use of the assets. The expected future use of the assets may prove to be unrealisable, which could lead to future reassessment of the useful lives and a need for impairment losses.
| INTANGIBLE ASSETS 2014 | Software | Software | Total |
|---|---|---|---|
| under con | |||
| DKK million | struction | ||
| Cost | |||
| Accumulated cost at 1 January | 834.9 | 186.5 | 1,021.4 |
| Additions | - | 134.8 | 134.8 |
| Disposals | (193.0) | - | (193.0) |
| Transferred | 80.0 | (80.0) | - |
| Accumulated cost at 31 December | 721.9 | 241.3 | 963.2 |
| Amortisation | |||
| Accumulated amortisation at 1 January | 537.5 | - | 537.5 |
| Amortisation | 121.7 | - | 121.7 |
| Amortisation on disposals | (193.0) | - | (193.0) |
| Accumulated amortisation at | |||
| 31 December | 466.2 | - | 466.2 |
Property, plant and equipment is measured at cost less accumulated depreciation.
Cost comprises the cost of acquisition and costs directly related to the acquisition up until the time when the asset is ready for use. In the case of assets of own construction, cost comprises direct costs attributable to the asset, including salaries and wages, materials, components, and work performed by subcontractors. Cost also includes interest expenses during construction.
On initial recognition, lease contracts for property, plant and equipment under which CPH has substantially all risks and rewards of ownership (finance leases) are initially measured in the balance sheet at the lower of the fair value and the present value of future lease payments. The present value is calculated using the interest rate implicit in the lease as the discount factor, or an approximate value. Assets held under finance leases are subsequently accounted for as CPH's other property, plant and equipment. The capitalised lease obligation is recognised in the balance sheet as a liability, and the financial charge is recognised in the income statement over the term of the contract.
The depreciation base is determined as cost less any residual value. Depreciation is charged on a straight-line basis over the estimated useful lives of the assets and begins when the assets are ready for use.
Land is not depreciated.
| Land and buildings | |
|---|---|
| Land improvements (sewers, etc.) | 40 years |
| Buildings | 40-100 years |
| Fitting out | 5-10 years |
| Plant and machinery | |
| Runways, roads, etc. (foundation) | 80-100 years |
| Surface of new runways, roads, etc. | 10 years |
| Technical installations on runways | 15 years |
| Technical installations (lifts, etc.) | 20 years |
| Technical installations in buildings | 25 years |
| Other fixtures and fittings, tools and equipment | |
| IT equipment | 3-5 years |
| Energy plant | 15 years |
| Vehicles, etc. | 4-15 years |
| Furniture and fittings | 10 years |
| Hotel equipment | 15-20 years |
| Security equipment | 10 years |
| Technical equipment | 10 years |
| Other equipment | 5 years |
Gains and losses on the sale of non-current assets are recognised under Other income.
Property, plant and equipment is depreciated to the estimated residual value over their estimated useful lives, which CPH has estimated above. CPH has made these estimates based on the Company's business plans and expected time of use of the assets and the technical and maintenance state of the assets and regulatory requirements. The residual value is substantially estimated at DKK 0 as at balance sheet date. The lives and residual values of the property, plant and equipment are reviewed at least every year-end based on these factors. CPH evaluates the carrying amounts in order to assess whether events have occurred that require an adjustment of the values, because the carrying value is not expected to be recoverable. In assessing the recoverable amount, CPH takes into account significant indicators of potential impairment such as purchase and sales prices and general market conditions.
The carrying amount of property, plant and equipment is tested at least annually for any indications of impairment of the value beyond what is expressed in the amortisation or depreciation charges. If so, an impairment charge is taken to the recoverable amount of the assets, if that is lower than the carrying amount (see also note 10 for a further description of impairment).
| PROPERTY, PLANT AND EQUIPMENT 2014 | Land and | Plant and | Other fixtures | Property, plant and | Total |
|---|---|---|---|---|---|
| DKK million | buildings* machinery |
and fittings, tools and equipment |
equipment under construction |
||
| Cost | |||||
| Accumulated cost at 1 January | 7,149.1 | 6,716.3 | 1,571.4 | 287.4 | 15,724.2 |
| Additions | - | - | - | 815.3 | 815.3 |
| Disposals | (153.3) | (205.1) | (43.3) | - | (401.7) |
| Transferred | 117.1 | 329.6 | 128.2 | (574.9) | - |
| Accumulated cost at 31 December | 7,112.9 | 6,840.8 | 1,656.3 | 527.8 | 16,137.8 |
| Depreciation | |||||
| Accumulated depreciation at 1 January | 2,650.8 | 3,321.6 | 1,082.4 | - | 7,054.8 |
| Depreciation | 178.2 | 254.6 | 124.1 | - | 556.9 |
| Depreciation on disposals | (153.2) | (205.1) | (43.1) | - | (401.4) |
| Accumulated depreciation at 31 December | 2,675.8 | 3,371.1 | 1,163.4 | - | 7,210.3 |
| Carrying amount at 31 December | 4,437.1 | 3,469.7 | 492.9 | 527.8 | 8,927.5 |
* CPH properties have been mortgaged for a total value of DKK 665.0 million (2013: DKK 665.0 million).
| PROPERTY, PLANT AND EQUIPMENT 2013 | Land and | Plant and | Other fixtures | Property, plant and | Total |
|---|---|---|---|---|---|
| DKK million | buildings* machinery |
and fittings, tools and equipment |
equipment under construction |
||
| Cost | |||||
| Accumulated cost at 1 January | 6,654.1 | 5,832.7 | 1,502.2 | 1,119.9 | 15,108.9 |
| Additions | - | - | - | 775.5 | 775.5 |
| Disposals | (63.2) | - | (97.0) | - | (160.2) |
| Transferred | 558.2 | 883.6 | 166.2 | (1,608.0) | - |
| Accumulated cost at 31 December | 7,149.1 | 6,716.3 | 1,571.4 | 287.4 | 15,724.2 |
| Depreciation | |||||
| Accumulated depreciation at 1 January | 2,539.2 | 3,090.6 | 1,059.2 | - | 6,689.0 |
| Depreciation | 174.8 | 231.0 | 119.9 | - | 525.7 |
| Depreciation on disposals | (63.2) | - | (96.7) | - | (159.9) |
| Accumulated depreciation at 31 December | 2,650.8 | 3,321.6 | 1,082.4 | - | 7,054.8 |
| Carrying amount at 31 December | 4,498.3 | 3,394.7 | 489.0 | 287.4 | 8,669.4 |
* See previous page for information.
Receivables are recognised in the balance sheet at amortised cost less any writedown. Write-downs are determined on the basis of an individual assessment of each receivable.
The write-down is based on an objective indication of impairment, such as outstanding payments, financial difficulties e.g. the debtor's suspension of payments, bankruptcy or expected bankruptcy.
| DKK million | 2014 | 2013 |
|---|---|---|
| Trade receivables | 364.0 | 328.1 |
| Write-down | 31.6 | 29.5 |
| Net trade receivables | 332.4 | 298.6 |
| Write-down for bad and doubtful debts Accumulated write-down at 1 January |
29.5 | 27.9 |
| Change in write-down for the year | 2.0 | 0.2 |
| Realised loss for the year | 0.8 | 1.4 |
| Reversal | (0.7) | - |
| Accumulated write-down at 31 December | 31.6 | 29.5 |
The year's movements are recognised in the income statement under External costs. The carrying amount equals fair value.
In a number of cases, CPH receives collateral security for sales on credit, mainly regarding non-aeronautical activities, and such collateral is included in the assessment of the write-down required for bad and doubtful debts. The collateral may be in the form of financial guarantees. Out of the trade receivables of DKK 332.4 million (2013: DKK 298.6 million), DKK 125.4 million (2013: DKK 59.7 million) is covered by collateral security. The maximum credit risk is reflected in the carrying amount of the financial assets in the balance sheet.
CPH's trade receivables at 31 December 2014 included receivables of DKK 33.4 million (2013: DKK 39.5 million), which were written down to DKK 1.8 million (2013: DKK 10.0 million) on the basis of an individual assessment.
In addition, overdue receivables as at 31 December which had not been written down totalled DKK 20.4 million (2013: DKK 27.3 million). The interval exceeding 90 days primarily relates to PRM charges in 2013. There are no PRM charges overdue in 2014. The list of receivables by maturity is as follows:
| DKK million | 2014 | 2013 |
|---|---|---|
| Overdue but not impaired receivables by maturity | ||
| Less than 30 days | 19.0 | 4.8 |
| 30 to 90 days | 0.2 | 0.2 |
| More than 90 days | 1.2 | 22.3 |
| Total | 20.4 | 27.3 |
Mortgage loans, loans from financial institutions and other loans are recognised when obtained at the proceeds received less transaction costs incurred. In subsequent periods, the loans are measured at amortised cost so that the effective interest charges are recognised in the income statement over the term of the loans.
| DKK million | 2014 | 2013 |
|---|---|---|
| Financial institutions and other loans are recognised in the balance sheet as follows: |
||
| Non-current liabilities | 4,044.4 | 4,173.1 |
| Current liabilities | 690.3 | 30.8 |
| Total | 4,734.7 | 4,203.9 |
| DKK million | Carrying amount | Fair value* | |||||
|---|---|---|---|---|---|---|---|
| Loan | Currency | Fixed/floating | Maturity date | 2014 | 2013 | 2014 | 2013 |
| Overdraft | DKK | Floating | - | 64.4 | 17.5 | 64.4 | 17.5 |
| RD (DKK 151 million)** | DKK | Fixed | 31 Mar 2020 |
63.3 | 74.0 | 63.3 | 74.0 |
| RD (DKK 64 million)** | DKK | Fixed | 23 Dec 2032 |
58.8 | 61.4 | 58.8 | 61.4 |
| Nordea Kredit** | DKK | Floating | 30 Dec 2039 |
450.9 | 450.9 | 451.9 | 451.9 |
| Danske Bank | DKK | Floating | 29 Mar 2016 |
- | 150.0 | - | 150.0 |
| Danske Bank | DKK | Floating | 02 Apr 2019 |
200.0 | - | 200.0 | - |
| USPP bond issue | USD | Fixed | 27 Aug 2015 |
612.1 | 541.3 | 638.3 | 577.7 |
| USPP bond issue | USD | Fixed | 27 Aug 2018 |
612.1 | 541.3 | 681.1 | 606.0 |
| USPP bond issue | USD | Fixed | 29 Jun 2018 |
612.1 | 541.3 | 658.6 | 586.1 |
| USPP bond issue | USD | Fixed | 29 Jun 2020 |
899.9 | 795.7 | 999.8 | 874.0 |
| USPP bond issue | USD | Fixed | 22 Aug 2023 |
979.5 | 866.0 | 986.9 | 814.1 |
| USPP bond issue | GBP | Fixed | 29 Jun 2020 |
218.8 | 205.1 | 244.1 | 215.1 |
| Total | 4,771.9 | 4,244.5 | 5,047.2 | 4,427.8 | |||
| Loan costs for future amortisation | (37.2) | (40.6) | (37.2) | (40.6) | |||
| Total | (37.2) | (40.6) | (37.2) | (40.6) | |||
| Total | 4,734.7 | 4,203.9 | 5,010.0 | 4,387.2 |
* See note 18 for a description of the method for determining the fair value of the financial liabilities.
** CPH properties have been mortgaged for a total value of DKK 665.0 million (2013: DKK 665.0 million).
The fixed rate USPP bonded loans of USD 607 million and GBP 23 million (2013: USD 607 million and GBP 23 million) were swapped to DKK on closing of contract both in terms of principal and interest payments through currency swaps.
The interest rate risk in connection to the floating rate loan from Nordea Kredit is hedged through an interest rate swap until 2020.
Provisions are recognised when, as a result of events occurring before or on the balance sheet date, the Group has a legal or constructive obligation and it is probable that an outflow of economic benefits will be required to settle the obligation.
Other payables primarily comprise holiday pay liabilities, income taxes, other taxes and interest payable and are measured at nominal value. Other payables also comprise the fair value of derivative financial instruments.
| DKK million | 2014 | 2013 |
|---|---|---|
| Holiday pay and other payroll items | 236.2 | 216.8 |
| Interest payable | 34.8 | 36.1 |
| Cash flow hedge (USPP bond) | 43.9 | - |
| Other costs payable | 36.1 | 15.3 |
| Balance at 31 December | 351.0 | 268.2 |
CPH is committed to provide redundancy pay to civil servants pursuant to the provisions of the Danish Civil Servants Act. See note 6.
As at 31 December 2014, CPH has entered into contracts to build facilities and other commitments totalling DKK 442.1 million (2013: DKK 261.1 million). Major commitments include contracts concerning replacement of air bridges, expansion of Pier C, LTE – Landside terminal expansion, refurbishment of stands, upgrade of baggage facilities, self-boarding gates and IT systems.
Under a management agreement between Hilton International and Copenhagen Airports' Hotel and Real Estate Company A/S, CPH has undertaken to pay the contractual consideration to Hilton for managing the hotel. The agreement expires on 31 December 2021.
Under the agreement with Naviair for the provision of air traffic services, CPH has undertaken to be liable for any TNC charges which Naviair users may fail to pay. This liability takes effect when the claim has been ascertained and documented as irrecoverable, and when other specifically agreed terms and conditions have been met.
Debt to financial institutions is secured by mortgage on CPH's properties as described in note 13.
CPH has a subsidiary liability for the tax liabilities of the Danish holding companies, which hold 57.7% of the shares of the Company. See note 9 for additional information.
CPH has no significant agreements to which CPH is a party and which take effect, alter or terminate upon change of control of CPH.
Pursuant to section 55 of the Danish Air Transport Act, special licenses from the Minister of Transport are required for airport operation. The licences for the airports at Kastrup and Roskilde, which are issued administratively by the Danish Transport Authority (DTA), expire on 1 July 2017.
The Minister of Transport may lay down regulations concerning the charges that may be levied on the use of a public airfield – "Charges Regulation". For additional information, see the Copenhagen Airports Act, the Danish Air Transport Act, the Copenhagen Airport Expansion Act, the Articles of Association of Copenhagen Airports A/S and EU regulations, including regulations concerning design, operation, facilities, etc.
Charges regulation for CPH is defined by the DTA in BL 9-15 of 8 March 2011 – "Regulation on payment for use of airports (Airport charges)" with annex 1 of 20 November 2013. According to BL 9-15 the airlines and the airport are first requested to seek consensus on the future airport charges in the coming regulatory period. If this is not possible, the DTA will set annual revenue caps, which comprise the maximum total amount the airport can use for each of the years as a basis for setting the charges for the use of the aeronautical facilities and services (fall-back). If the charges are negotiated by the parties, the parties must also agree on the length of the coming regulatory period. The regulatory period is four years in the event that the parties cannot agree on the terms and conditions through negotiation.
BL 9-15 includes various rules on the determination of charges by negotiation and in the event of a fall-back situation. In a fall-back situation, the revenue caps will be determined to cover the operating costs, depreciation and cost of capital for efficient operation of the airport. On the basis of the revenue cap, CPH is then required to prepare a proposal for charges for the regulatory period, for approval by the DTA. BL 9-15 includes various rules on how to calculate these revenue caps.
Related parties that have significant control over the Group comprise the Danish State, represented by the Danish Ministry of Finance.
CPH's other related parties with control are the Ontario Teachers' Pension Plan (OTPP) and Macquarie European Infrastructure Fund III (MEIF3), cf. their controlling ownership interests in CPH and associates cf. note 25, and the Board of Directors and Executive Management. See also note 6 regarding remuneration to the Board of Directors and Executive Management.
OTPP and MEIF3 (via their respective underlying holding companies) jointly own and control Copenhagen Airports Denmark ApS (CAD), company reg. (CVR) no. 29144249. CAD is indirectly controlled by Kastrup Airports Parent ApS (KAP), company reg. (CVR) no. 33781903, which is owned by OTPP and MEIF3.
KAP is thereby the ultimate holding company of CPH. The Group Annual Report of KAP, in which CPH is included as a subsidiary, may be obtained from KAP through Visma Service Denmark A/S, Lyskær 3C, DK-2730 Herlev, Denmark.
CAD owns 57.7% of both the shares and voting rights of CPH.
OTPP and MEIF3 (through their respective underlying holding companies) have signed a shareholders' agreement providing for agreement between the two parties on all material resolutions. The agreement also stipulates rules for the nomination of members of the Board of Directors of CPH.
For additional information on OTPP and MEIF3, see
In September 2009, the airlines and CPH (under the supervision of the DTA) signed a 5½-year agreement regarding the determination of charges under which charges are generally unchanged until 31 March 2011, after which charges are increased in accordance with increases in the Danish Consumer Price Index plus 1% per year until 31 March 2015.
In August 2010, the airlines and CPH (under the supervision of the DTA) entered into an agreement regarding an addendum to the existing charges agreement which introduced differentiated traffic charges. The passenger charge for using the new CPH Go low-cost facility was reduced by approximately 35% under the new agreement as compared with the existing passenger charge.
The passenger charge for other international departures and domestic transfers was reduced, while charges for domestic departures, international transfers and the security and handling charges were all increased. The changes took effect on 31 October 2010, the date when CPH Go was opened. In addition to the modified passenger charges, the agreement also included a new charge based on aircraft emissions of nitrogen oxides (NOX), a charge designed to promote the use of more environmentally friendly aircraft.
In November 2011, the airlines and CPH (under the supervision of the DTA) entered into an agreement regarding an addendum to the existing charges agreement regarding establishment of an express security service, CPH Express, which opened in early January 2012.
During the period 1 March 2014 – 1 September 2014, the airlines and CPH negotiated and concluded a new charges agreement (under the supervision of the DTA). The new charges agreement will enter into force for the period 1 April 2015 – 31 March 2019 under which the price for using the airport follows the Danish Consumer Price Index. The charges agreement includes investments by CPH which help reduce total airline costs. These investments comprise a change to the airside security area, making it easier and cheaper to service the airplanes and merging
17 the domestic and international traffic to strengthening the domestic product and make operations more efficient. Uniform prices for domestic and international traffic will be introduced in connection with the merger of the domestic and international traffic towards a full harmonisation on 1 April 2016, except that CPH Go is retaining a lower passenger charge.
In connection with CPH's hedging of future transactions and cash flows, derivative financial instruments are used as part of CPH's risk management.
Derivative financial instruments are initially recognised in the balance sheet at fair value on the transaction date under Other receivables or Other payables respectively.
Changes in the fair value of derivative financial instruments that are designated as fair value hedges of a recognised asset or a recognised liability are recognised in the income statement together with any changes in the fair value of the hedged asset or hedged liability.
Changes in the fair value of derivative financial instruments designated as hedges of expected future cash flows are recognised in other comprehensive income and accumulated under Reserve for hedging. If the expected future transaction results in the recognition of non-financial assets or liabilities, amounts previously deferred in other comprehensive income are transferred via other comprehensive income from equity and included in the initial measurement of the cost of the asset or liability respectively. Other amounts deferred in other comprehensive income as part of equity are transferred to the income statement in the period in which the hedged transaction affects the income statement.
The fair value of interest rate and currency swaps is determined as the present value of expected future cash flows. The fair value of forward exchange contracts and other derivative financial instruments is determined based on observable exchange rates and the swap and forward rates made at the balance sheet date. Furthermore, an evaluation of own and counterparty credit risk is included.
CPH's financial risks are managed from its head office. The principles and framework governing CPH's financial management are laid down as a minimum once a year by the Board of Directors. The financial risks occur primarily as a result of operating and investing activities and are hedged to the greatest possible extent.
CPH's credit risks are primarily related to receivables, bank deposits, securities, and derivative financial instruments.
The credit risk regarding receivables arises when CPH's revenue by way of traffic charges, concession charges, rent, etc. are not prepaid, or when customer solvency is not covered by guarantees, etc.
CPH's revenue comprises aeronautical revenue from national and international airlines and non-aeronautical revenue from national and international companies within and outside the aviation industry. As part of CPH's internal procedures regarding risk management, the credit risk relating to customers is monitored on a monthly basis. This is done by reviewing any failure to pay amounts due and assessing whether the customer has financial problems.
CPH's trading partners SAS and Gebr. Heinemann, the largest concessionaire, constitute the most significant concentration of credit risk. The gross receivables from sales of services amounted to approximately 28.2% (2013: 37.8%). SAS' credit rating from Standard & Poor's is still B- (2013: B-). Gebr. Heinemann does not have a published credit rating, but they have provided a banker's guarantee to CPH equivalent to four months´ revenue (2013: three months' revenue). The remaining credit risk is distributed on CPH's many customers. See note 12 Trade receivables for further information.
18 A complete overview of payment commitments is disclosed on the next page. All Credit risks related to bank deposits, securities and derivative financial instruments arise as a result of uncertainty regarding the counterparty's ability to meet liabilities when due. CPH seeks to limit the credit risk regarding bank deposits and derivative financial instruments by diversifying financial contracts and by entering into contracts only with financial counterparties with satisfactory credit ratings.
The credit risk is calculated per counterparty based on the actual market value of the contracts entered into. The credit exposure to financial counterparties as at 31 December 2014 totalled DKK 47.1 million (2013: DKK 37.0 million), corresponding to the value of bank deposits, including accrued interest. As at the balance sheet date, CPH had no credit risk on derivative financial instruments.
CPH's policy concerning borrowings is, as far as possible, to ensure a certain flexibility by diversifying financial contracts by maturity date and counterparties.
CPH's liquidity reserve consists of cash totalling DKK 47.1 million (2013: DKK 37.0 million) and guaranteed unused long-term revolving credit facilities totalling DKK 1,885.6 million (2013: DKK 1,850.0 million). Further, CPH has overdraft facilities of DKK 85.6 million available (2013: DKK 132.5 million). In addition to a general operational risk assessment, CPH endeavours to have a minimum of guaranteed unused liquidity in the region of DKK 250.0 million at any time so that CPH is able to meet its obligations from time to time and concurrently has capital resources to make necessary business-related arrangements.
CPH has, itself and on behalf of its subsidiaries, undertaken not to create or permit to subsist any security over its assets or those of its subsidiaries, subject to a maximum permitted amount. Furthermore, CPH has made a commitment to its lenders to comply with a number of other terms and conditions, including financial covenants. A number of CPH's agreements on loans and credit facilities can be terminated in the event of failure to comply with these terms and conditions. CPH complies with all terms and conditions as at 31 December 2014.
cash flows are non-discounted and include all liabilities according to contracts. Interest payments on floating-rate debt not yet hedged are recognised at the fixed forward rate from the day the loans are expected to be swapped based on the yield curve applicable as at the balance sheet date. The DKK value of future interest and principal payments on loans in foreign currency is calculated based on the exchange rate as at the balance sheet date.
Note
| MATURITY AS AT 31 DECEMBER 2014 DKK million |
0-1 year |
1-5 years |
After 5 years |
Total | Fair value level 2* |
Carrying amount |
|---|---|---|---|---|---|---|
| Recognised at amortised cost | ||||||
| Financial institutions and other loans | 892.6 | 2,111.0 | 2,800.3 | 5,803.9 | 5,047.1 | 4,771.9 |
| Trade payables | 440.0 | - | - | 440.0 | 440.0 | 440.0 |
| Other payables and deferred income | 361.4 | - | - | 361.4 | 361.4 | 361.4 |
| Total | 1,694.0 | 2,111.0 | 2,800.3 | 6,605.3 | 5,848.5 | 5,573.3 |
| Recognised at fair value | ||||||
| Derivative financial instruments | 39.6 | 82.4 | 118.0 | 240.0 | 240.0 | 240.0 |
| Total | 39.6 | 82.4 | 118.0 | 240.0 | 240.0 | 240.0 |
| Total financial liabilities | 1,733.6 | 2,193.4 | 2,918.3 | 6,845.3 | 6,088.5 | 5,813.3 |
| Recognised at amortised cost | ||||||
| Cash | 47.1 | - | - | 47.1 | 47.1 | 47.1 |
| Trade receivables | 332.4 | - | - | 332.4 | 332.4 | 332.4 |
| Other receivables | 28.5 | - | - | 28.5 | 28.5 | 28.5 |
| Total | 408.0 | - | - | 408.0 | 408.0 | 408.0 |
| Total financial assets | 408.0 | - | - | 408.0 | 408.0 | 408.0 |
* The fair value of the financial liabilities is the present value of the expected future instalments and interest payments except for Trade payables, Other payables and Receivables, which are stated at the net carrying amount at year-end. A zero-coupon interest rate for similar maturities plus estimated credit cost based upon the present rating of the Company is used as the discount rate. The fair value of derivative financial instruments is determined based on published exchange rates, swap and forward rates, etc. Furthermore, an evaluation of own and counterparty credit risk is included. The fair value measurement of financial instruments is broken down into the following measuring hierarchy:
Level 1: Observable market prices of identical instruments
Level 2: Valuation models primarily based on observable prices or traded prices of comparable instruments
Level 3: Valuation models primarily based on non-observable prices
The fair value of CPH's forward exchange contracts and other derivative financial instruments (interest rate and currency swaps) are considered a level 2 fair value measurement as the fair value is primarily determined directly based on the published exchange rates and quoted swap and forward rates on the balance sheet date.
| MATURITY AS AT 31 DECEMBER 2013 DKK million |
0-1 year |
1-5 years |
After 5 years |
Total | Fair value level 2* |
Carrying amount |
|---|---|---|---|---|---|---|
| Recognised at amortised cost | ||||||
| Financial institutions and other loans | 226.8 | 2,415.0 | 2,757.8 | 5,399.6 | 4,427.8 | 4,244.5 |
| Trade payables | 328.0 | - | - | 328.0 | 328.0 | 328.0 |
| Other payables and deferred income | 276.5 | - | - | 276.5 | 276.5 | 276.5 |
| Total | 831.3 | 2,415.0 | 2,757.8 | 6,004.1 | 5,032.3 | 4,849.0 |
| Recognised at fair value Derivative financial instruments |
8.1 | 367.1 | 243.2 | 618.4 | 618.4 | 618.4 |
| Total | 8.1 | 367.1 | 243.2 | 618.4 | 618.4 | 618.4 |
| Total financial liabilities | 839.4 | 2,782.1 | 3,001.0 | 6,622.5 | 5,650.7 | 5,467.4 |
| Recognised at amortised cost | ||||||
| Cash | 37.0 | - | - | 37.0 | 37.0 | 37.0 |
| Trade receivables | 298.6 | - | - | 298.6 | 298.6 | 298.6 |
| Other receivables | 7.6 | - | - | 7.6 | 7.6 | 7.6 |
| Total | 343.2 | - | - | 343.2 | 343.2 | 343.2 |
| Total financial assets | 343.2 | - | - | 343.2 | 343.2 | 343.2 |
* See previous page for information.
It is CPH's policy to hedge interest rate risks on its loans whenever it is considered that the interest payments can be hedged at a satisfactory level. Hedging is normally made by entering into interest rate swaps under which floating rate loans are swapped to a fixed rate of interest.
Interest rate swaps have been used to hedge the floating rate on mortgage loans over a part of the loan's maturity. As at the balance sheet date, CPH has outstanding interest rate swaps with a notional amount of DKK 450.9 million (2013: DKK 450.9 million) and the remaining period is 6.0 years (2013: 7 years). The fair value of the interest rate swaps amounts to DKK (72.1) million (2013: DKK (56.5) million).
In order to reduce the overall interest rate sensitivity' CPH seeks to ensure that its debt interests terms has a duration that to a certain extent takes into account the need for long term funding. The duration of CPH's loans as at 31 December 2014 amounted to approximately 6.0 years (2013: approximately 5.0 years), including the effect of swap contracts.
Most of CPH's loan portfolio is at fixed rate or swapped to fixed rate. Fluctuations in the interest rate level would therefore only have a limited impact on CPH's income statement.
As the exchange rate and interest rate risk of debt denominated in USD, GBP and DKK is hedged by USD/DKK, GBP/DKK and DKK interest rate swaps, a change in interest rate would affect equity.
Sensitivity analysis of the current portfolio of swap contracts
| DKK million | 2014 | 2013 |
|---|---|---|
| EFFECT ON EQUITY BY: | ||
| An increase in the DKK rate of interest by one percentage point |
(223.7) | 230.1 |
| A decrease in the DKK rate of interest by one percentage point |
223.7 | (247.6) |
| An increase in the USD rate of interest by one percentage point |
(36.0) | (182.2) |
| A decrease in the USD rate of interest by one percentage point |
36.0 | 196.2 |
| An increase in the GBP rate of interest by one percentage point |
16.0 | (13.0) |
| A decrease in the GBP rate of interest by one percentage point |
(16.0) | 13.9 |
A change in the USD, GBP or DKK interest rates will affect the fair value of the loan portfolio with the opposite effect. Since the debt is measured at amortized cost in the balance sheet, it will not affect the recognised debt and equity.
Exchange rate fluctuations would have a moderate impact on CPH's results of operations because most of its revenues and costs are settled in DKK.
CPH has chosen a strategy under which it seeks to continuously hedge its currency exposure 12 months forward. Currency exposure primarily arises from outstanding amounts denominated in foreign currency (payments from debtors or payments to creditors, etc.).
The currency swaps were entered into to hedge future cash flows in CPH´s functional currency, DKK.
Currency swaps have been used to hedge fixed rate bond loans denominated in USD and GBP by swapping the exchange rate exposure on both interest and principal from fixed payments in USD and GBP to fixed payments in DKK throughout the terms of the respective loans. The total notional amount of these outstanding cross currency swaps was USD 607 million and GBP 23 million as at 31 December 2014 (2013: USD 607 million and GBP 23 million). The carrying amount of currency swap contracts amounts to DKK (167.9) million (2013: DKK (561.8) million).
The net fair value stated will be transferred from the Reserve for hedging to the income statement as and when the hedged interest payments are made. The terms to maturity of the cross currency swaps match the terms to maturity of the related loans. The terms to maturity on the interest rate swaps are shorter than those of the underlying mortgage loans, but the hedges match the payments on the loans in the full terms of the hedges.
| DKK million | 2014 | 2013 |
|---|---|---|
| Revenue | 3,867.5 | 3,644.5 |
| Change in trade debtors and prepayments from | ||
| customers | 16.3 | 60.9 |
| Total | 3,883.8 | 3,705.4 |
| DKK million | 2014 | 2013 |
|---|---|---|
| Operating costs | (1,730.3) | (1,650.1) |
| Change in other receivables, etc. | 36.3 | 51.4 |
| Change in cost-related trade creditors, etc. | 112.2 | (195.3) |
| Total | (1,581.8) | (1,794.0) |
| DKK million | 2014 | 2013 |
|---|---|---|
| Interest received, etc. | 10.0 | 0.4 |
| Realised exchange gains | 1.2 | 1.5 |
| Total | 11.2 | 1.9 |
No other material events have occurred subsequent to the balance sheet date.
See Shareholder information in the Management's Review on pages 50-52.
| DKK million | 2014 | 2013 |
|---|---|---|
| Interest paid, etc. | (220.6) | (222.3) |
| Realised exchange losses | (0.6) | (0.3) |
| Other financial costs | (5.4) | (8.2) |
| Other interest expenses | (6.2) | (8.6) |
| Total | (232.8) | (239.4) |
| DKK million | 2014 | 2013 | |
|---|---|---|---|
| EPS = | Net profit for the year Number of outstanding shares (thousands) |
958.4 7.848 |
976.1 7.848 |
| EPS = (diluted) |
Net profit for the year Average number of outstanding shares, fully diluted (thousands) |
958.4 7.848 |
976.1 7.848 |
• Airport Coordination Denmark A/S, Tårnby, Denmark – 50% owned by CPH
The following amendment to the standards and interpretations have been adopted by the IASB and the EU. The standards will enter into force later and will be implemented in the annual reports for 2015 and 2016.
• Amendment to IAS 19, "Employee Benefits"
The IASB has issued the following amendments to standards and new interpretations that have not yet been adopted by the EU:
The listed standards and interpretations have been adopted by the EU, except for IFRS 9. None of the above standards are currently expected to have a significant impact on CPH.
| Note | Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|
| Extraordinary customer experience | |||||
| 2 | Passenger satisfaction with check-in, security, cleaning, shopping centre, | ||||
| terminals and baggage delivery | scale 0-100 | 86.3 | 84.4 | 85.9 | |
| Passenger satisfaction with CPH Security | scale 0-100 | 89 | 86 | 87 | |
| 3 | Waiting time in central security check, less than five min. | % | 90.96 | 87.07 | 86.81 |
| Efficient operations | |||||
| 4 | Traffic on time (on-time departure <15 min) | % | 86.8 | 85.5 | 87.1 |
| 5 | Reported near-incidents per 10,000 operations | number | 8.38 | 11.06 | 14.36 |
| Events reported by persons involved | % | 94 | 85 | 49 | |
| Competitiveness | |||||
| 6 | Higher growth rate than majority of eight selected key hubs in Europe (target) | - | accomplished | not calculated | not calculated |
| 7 | Traffic performance, passengers | number | 25,627,093 | 24,067,030 | 23,336,187 |
| Traffic performance, operations and cargo | number | 251,799 | 244,942 | 242,992 |
| Note | Unit | 2014 | 2013 | 2012 | ||
|---|---|---|---|---|---|---|
| 8 | Total employees | FTE | 2,170 | 2,122 | 2,073 | |
| Total employees | individuals | 2,306 | 2,246 | 2,203 | ||
| 9 | Employee turnover | % | 9.7 | 9.8 | 8.6 | |
| 10 | Collective bargaining agreements | % | 67 | 68 | 68 | |
| 11 | Employee representation on formal committees | number | 119 | 125 | 116 | |
| Occupational health and safety | ||||||
| 12 | Absence due to illness | % | 4.76 | 4.87 | 5.30 | |
| Rate of injury | number per 1 million | |||||
| working hours | 16.5 | 15.0 | 15.9 | |||
| 13 | Health-promoting activities | |||||
| - Health examinations |
number | 340 | 341 | 344 | ||
| - Physiotherapy treatments/massages |
number | 792 | 799 | 380 | ||
| 14 | Employee engagement (average score) | scale 0-100 | 80 | 75 | 77 | |
| Diversity | ||||||
| 15 | Gender distribution, employees (women) | % | 34 | 34 | 33 | |
| Gender distribution, employees (men) | % | 66 | 66 | 67 | ||
| Gender distribution, management (women) | % | 25 | 27 | 25 | ||
| Gender distribution, management (men) | % | 75 | 73 | 75 | ||
| Gender distribution, Board of Directors (women) | % | 17 | 17 | 17 | ||
| Gender distribution, Board of Directors (men) | % | 83 | 83 | 83 | ||
| 16 | Average age | year | 44.7 | 44.4 | 43.7 | |
| Apprentices/office trainees | number | 18 | 10 | 8 | ||
| 17 | Ethnicity (Danish origin/immigrants/descendants of immigrants) | % | 91/7/2 | not calculated | 89/8/3 | |
| Diversity strategy (new target for 2015) | - | n/a | n/a | n/a | ||
| Business ethics | ||||||
| 18 | Contract Management system (target) | - | q. phase1 | n/a | n/a | |
| UNGC principles in new contracts with concessionaires (target) | - | a. phase2 | n/a | n/a |
1 q. phase = Quotation phase
2 a. phase = Analysis phase
| Note | Unit | 2014 | 2013 | 2012 | ||
|---|---|---|---|---|---|---|
| Climate and energy | ||||||
| 19 | CO emissions per passenger, Scope 1 + 2 |
kg | 1.2 | 1.3 | 1.4 | |
| 20 | 2 CO emissions per passenger, Scope 3 |
kg | 12.3 | 12.7 | 13.2 | |
| 2 Maintaining ACA accreditation at minimum level 3 (target) |
- | accomplished | n/a | n/a | ||
| 21 | Direct energy consumption, Scope 1 | MWh | 17,488 | 19,886 | 20,765 | |
| 22 | Indirect energy consumption , Scope 2 | MWh | 78,675 | 81,502* | 82,981 | |
| 23 | Total energy savings, Scope 1 + 2 | MWh | 3,273 | 3,608 | 3,082 | |
| Waste | ||||||
| 24 | Recycling rate | % | 15 | 17 | 18 | |
| Noise | ||||||
| 25 | Number of operations (number of take-offs and landings, local time, CET) | number | 251,799 | 244,944 | 242,997 | |
| 26 | TDENL | dB | 144.5 | 144.4 | 144.7 | |
| 27 | Maximum level from take-offs and landings during night period | |||||
| (more than 80 dB) | number | 19 | 23 | 22 | ||
| Air quality | ||||||
| 28 | NO | µg/m3 | 3 | 5 | 4 | |
| NO 2 |
µg/m3 | 14 | 16 | 16 | ||
| PM 2,5 |
µg/m3 | n/a | 12 | 11 | ||
| Water | ||||||
| 29 | Drinking water per passenger | litres | 7.5 | 8.1 | 8.6 | |
| 30 | Waste water | m3 | 354,483 | 360,802 | 363,283 | |
| 31 | Surface water | m3 | 2,936,640 | 2,069,283 | 2,005,597 | |
| Other environmental parameters | ||||||
| 32 | De-icing of runways (consumption of formiate) | m3 | 566 | 1,143 | 1,294 | |
| 33 | De-icing of aircraft (glycol used) | m3 | 389 | 684 | 534 | |
| 34 | Herbicides | litres | 147 | 178 | 196 |
* The amount for 2013 has been adjusted due to a measuring error in the calculation of the district heating consumption. The measuring error occurred during a major refurbishment.
| Note | Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|
| ROSKILDE AIRPORT | |||||
| 35 | Traffic performance, passengers | number | 24,082 | 30,384 | 29,804 |
| Traffic performance, operations | number | 66,456 | 72,649 | 73,867 | |
| 36 | CO emissions, Scope 1 + 2 2 |
metric ton | 534 | 630 | 657 |
| 37 | Direct energy consumption, Scope 1 | MWh | 980 | 1,221 | 1,125 |
| 38 | Indirect energy consumption, Scope 2 | MWh | 695 | 792 | 840 |
| 39 | Energy savings, Scope 1 + 2 | MWh | 0 | 143 | 301 |
| 40 | Water consumption | m3 | 4,244 | 5,091 | 4,903 |
| 1 | Summary of significant accounting policies | 105 |
|---|---|---|
| Position performance | ||
| 2 | Passenger satisfaction | 108 |
| 3 | Waiting time in central security check | 108 |
| 4 | Punctuality | 108 |
| 5 | Incidents | 109 |
| 6 | Growth rate in relation to selected key hubs | 109 |
| 7 | Traffic performance | 110 |
| Social performance | ||
| 8 | Employees | 111 |
| 9 | Employee turnover | 111 |
| 10 | Collective bargaining agreements | 112 |
| 11 | Representation on formal committees | 112 |
| 12 | Sickness absence and rate of injury | 113 |
| 13 | Health promoting activities | 113 |
| 14 | Employee engagement | 114 |
| 15a | Gender distribution | 114 |
| 15b | Maternity and parental leave | 115 |
| 16a | Age composition | 115 |
| 16b | Senior employees | 116 |
| 16c | Apprentices, office trainees and student assistants | 116 |
| 17 | Ethnicity | 117 |
| 18a | Responsible supplier management | 117 |
| 18b | Other social and ethical indicators | 118 |
| Environmental performance | ||
|---|---|---|
| 19 | CO² emissions, Scope 1 + 2 |
118 |
| 20 | CO² emissions, Scope 3 |
119 |
| 21 | Direct energy consumption | 119 |
| 22 | Indirect energy consumption | 120 |
| 23 | Total energy savings | 120 |
| 24 | Waste | 121 |
| 25 | Noise – Number of operations | 121 |
| 26 | Noise – TDENL | 122 |
| 27 | Noise – Maximum level from take-offs | |
| and landings during night period | 122 | |
| 28 | Air quality | 123 |
| 29 | Drinking water | 124 |
| 30 | Waste water | 124 |
| 31 | Surface water | 125 |
| 32 | Runway de-icing – Consumption of formiate | 126 |
| 33 | Aircraft de-icing – Glycol used | 126 |
| 34 | Herbicides | 127 |
| 35 | Roskilde Airport – Number of operations | 127 |
| 36 | Roskilde Airport – CO² emissions |
128 |
| 37 | Roskilde Airport – Direct energy consumption | 128 |
| 38 | Roskilde Airport – Indirect energy consumption | 129 |
| 39 | Roskilde Airport – Total energy savings | 129 |
| 40 | Roskilde Airport – Water consumption | 130 |
The non-financial statements are prepared in accordance with sections 99a and 99b of the Danish Financial Statements Act. Pursuant to section 99a, CPH is required to give an account of its CSR policies and report on its CSR activities and the results achieved through these activities. Pursuant to section 99b, CPH is required to give an account of the Company's targets and policies defined to ensure, over time, increased diversity in relation to gender distribution at the level of the Board of Directors and management. Read CPH's CSR policy at
CPH has since 2011 supported the UN Global Compact principles regarding human rights, labour standards, the environment and anti-corruption efforts. As a signatory to the Global Compact, CPH reports on its activities to incorporate the ten principles in its strategy, operations and corporate culture. As part of these efforts, CPH also works to disseminate the ten principles to its suppliers and business partners. See Global Compact Index on pages 131-132 for an overview of CPH's position with respect to the principles and find links to additional information.
CPH is responsible for ensuring that reporting is provided on the areas that are relevant to CPH's stakeholders and have a material impact on CPH's business now and in the future.
As from this year, integrated reporting is provided on CPH's financial and nonfinancial performance. The integration of CPH's financial and non-financial annual reporting is a reflection of CPH's business-driven approach to CSR, and is a natural continuation of the work on embedding CSR in the organisation as a whole.
In the autumn of 2014, CPH thoroughly restructured the targets that drive its work relating to responsible growth as part of the process of embedding CSR in the organisation. In order to better reflect CPH's holistic approach to responsible growth, the business-driven targets have been integrated with the traditional CSR areas; environment and energy, employees, safety and security, and procurement, in this new target structure. The targets are now organised in three strategic areas of focus: Position, People and Planet, as presented on page 10. The non-financial statements follow this structure.
The selection of the data included in the non-financial reporting is made based on statutory requirements and management's annual evaluation of what is considered to be material to report to CPH's stakeholders. Both short-term and longterm value creation is taken into account. Management's assessment is based on an evaluation of last year's report for the Group, CPH and Society 2013, and the new target structure, as well as input and comments from relevant internal stakeholders and the consortium of owners.
The same measurement and calculation methods are applied for all CPH reporting sites and companies. Data and disclosures are recorded continuously based on reporting from the individual areas and functions at the airport and are, in all essentials, based on externally documented records, internal records, calculations and, to a lesser extent, estimations. The specific method of calculation for each indicator is stated in the related accounting policies note. Historical data are only restated if the change accounts for more than 2% of the consolidated figure and, if so, the reason is disclosed in a note.
As a consequence of the clearer integration of the business and traditional CSR targets, the format in the reporting on non-financial results has been changed. The non-financial results are now presented in the same form as the financial results, and as from this year, reporting is provided on the basis of a thorough assessment of materiality and, accordingly, no longer in accordance with the Global
Reporting Initiative (GRI) G3.1 guidelines. However, the GRI 3.1 is still used as guideline to ensure that the reporting is broad and relevant.
As a result of the restructuring of the CSR targets, 14 of the 32 targets stated in CPH and Society 2013 have been organised in three areas of focus: Position, People and Planet. Nine targets have been met, seven are still active but not included as key targets in the new target structure, and two targets are no longer considered to be relevant. The change in the target structure and the decision to report based on an assessment of materiality rather than GRI 3.1 has also resulted in a change in the number of indicators in the non-financial statements. See the next pages for an overview of changes.
Facts & Figures 2014 constitutes CPH's statutory annual reporting and is primarily aimed at professional stakeholders. In order to improve the communication with other CPH stakeholders, a website with information and easily accessible facts about how Copenhagen Airport is operated and developed will be launched during the spring of 2015.
Facts & Figures 2014 represents CPH's Communication On Progress (COP-report) to UN Global Compact.
The annual report includes reporting for the entire Group with respect to nonfinancial data and disclosures. Newly established companies are consolidated from the start-up of operations, and acquired companies are consolidated from the date CPH assumes control. Companies are eliminated from the reporting from the date when they are no longer controlled by CPH.
Below are listed the changes in targets compared to the CSR targets presented in CPH & Society 2013.
Below are listed the GRI 3.1 indicators eliminated in the transition process from the GRI table in CPH and Society 2013 to the non-financial statements in this report:
* CPH does not separately measure the efforts in this area as it is included in other areas of effort.
Due to the new target structure, the following indicators are added:
Passenger satisfaction is measured through personal interviews at the airport and is an expression of the passengers experienced delivery of service through the travel value chain in CPH regarding the specific travel, they are carrying out that day.
Passenger overall satisfaction with check-in, security, cleaning, shopping centre, terminals and baggage claim is evaluated on a scale from 1-7, after which it is converted to a scale of 0-100 and weighted to a simple average to get a nuanced expression of the total experience.
Passenger satisfaction with check-in and security is evaluated only by locally departing passengers.
The interviews are conducted by an external research agency.
| Unit | 2014 | 2013 | 2012 |
|---|---|---|---|
| scale from | |||
| 0-100 | 86.3 | 84.4 | 85.9 |
| scale from | |||
| 0-100 | 89 | 86 | 87 |
| number | 89,020 | 94,570 | 104,100 |
See page 29 for more information.
Waiting time in the central security check is measured between the hours of 4am and 11pm by BlipSystems. The waiting time is calculated as the share of passengers waiting in less than five minutes, as an average of the year.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Waiting time in central security | ||||
| check less than five min. | % | 90.96 | 87.07 | 86.81 |
This indicator will be changed from 1 April 2015 to "90% in less than 15 minutes (in peak: 5-9AM and 3-7PM)". For more information, see page 29.
4
The figure below represents the percentage of passenger traffic that departed no later than 15 minutes after the planned departure time. Departed means the time the aircraft pushed back from the gate. The departure time of each operation is determined by CPH based on a prioritized set of data sources.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Traffic on time | ||||
| (on-time departure <15 min) | % | 86.8 | 85.5 | 87.1 |
In 2014, CPH claimed the top position among the most punctual medium sized airports in the EU. For more information see page 28.
5
The number of reported near-incidents is measured per 10,000 operations. Incidents are defined as all situations where vehicles or people are blocking the path of an aircraft. All incidents are classified according to severity. The sources are reports from the people involved, pilot reports, marshall reports, observations, direct information from people who are involved in incidents, and security reports.
"Events reported by persons involved" are measured as the incidents mandatory to report, which are reported by the person involved in the specific incident. The report from the persons involved are compared with information from other sources regarding the incident. Other sources are pilot reports, marshall reports, reports from air traffic controller and observations.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Reported near-incidents | ||||
| per 10,000 operations | number | 8.38 | 11.06 | 14.36 |
| Events reported by persons | ||||
| involved | % | 94 | 85 | 49 |
Through a massive and targeted effort, CPH has succeeded in creating great awareness among both own and partners' employees about the importance of safety at the airport. The information CPH receives through its reporting system is highly valuable in the continuing efforts to reduce the number of near-incidents, as they provide insight to initiatives that could increase the safety further.
Eight European airports have been selected as benchmark. The selected airports are defined as major hub airports in Northern Europe with a significant share of transfer passengers. Sources are the international airport association ACI's official statistics, collected directly from the airports.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Seen over a rolling four-year | ||||
| period, Copenhagen Airport | ||||
| should have a higher growth | ||||
| rate than the majority of eight | accom | not | not | |
| selected key hubs in Europe | - | plished | calculated | calculated |
See pages 26-28 for more information.
Traffic performance is calculated on the basis of data in CPH's traffic statistics system and includes all aircraft operations (take-offs and landings), aircraft type, take-off weight, use of runway and flight time. The compulsory registration of the number of passengers is calculated by the handling companies on behalf of the airlines and includes passengers who have arrived in transit or travelled out of Copenhagen Airport. Traffic performance is measured based on standard hours, UTC. Import cargo is cargo that has Copenhagen as destination. Export cargo is cargo departed from Copenhagen Airport. It is normal practice that cargo is trucked to and from hub airports. This cargo is also considered air cargo.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Traffic performance, passengers | number | 25,627,093 | 24,067,030 | 23,336,187 |
| International passengers | number | 23,680,303 | 22,164,378 | 21,401,054 |
| Domestic passengers | number | 1,946,790 | 1,902,652 | 1,935,133 |
| Transfer/transit passengers | number | 6,371,687 | 5,651,435 | 5,544,415 |
| Traffic performance, operations and cargo | number | 251,799 | 244,942 | 242,992 |
| Total annual operations, domestic | number | 30,515 | 28,439 | 29,065 |
| Total annual operations, international | number | 221,284 | 216,503 | 213,927 |
| Total cargo tonnage | metric ton | 390,210 | 360,990 | 354,270 |
| Arriving by flight (import), total | metric ton | 49,607 | 46,290 | 45,258 |
| Departing by flight (export), total | metric ton | 64,729 | 59,527 | 59,763 |
| Transfer, total | metric ton | 275,874 | 255,173 | 249,249 |
For more information see page 26.
Information on employees such as age, gender etc. is generally based on CPH's HR system records, in which an employee's data are recorded from the date the employment contract is valid, and information is no longer included in the consolidated figures from the date an employee is no longer on the payroll.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Total employees | FTE | 2,170 | 2,122 | 2,073 |
| Total employees | individuals | 2,306 | 2,246 | 2,203 |
| Copenhagen Airport | FTE | 2,132 | 2,083 | 2,157 |
| Roskilde Airport | FTE | 35 | 36 | 36 |
| International department | FTE | 3 | 3 | 4 |
| Full-time employees | number | 2,019 | 1,964 | 1,928 |
| Part-time employees | number | 287 | 282 | 275 |
| Temporary employees | number | 17 | 38 | 42 |
| Permanent employees | number | 2,289 | 2,208 | 2,161 |
| Salaried employees | number | 687 | 654 | 623 |
| Hourly paid employees | number | 1,586 | 1,559 | 1,515 |
| Public servants | number | 33 | 33 | 38 |
| Middle managers, level 4-6 | number | 181 | 170 | 154 |
| Middle managers, level 1-3 | number | 32 | 31 | 30 |
A 6.5% increase in passenger numbers in 2014 resulted in an increase of close to 3% in the number of employees (2.3% in the number of FTEs and 2.7% in number of individuals).
Employee turnover is determined as the number of employees who retired from the Company during the year relative to the average number of employees. The number of employees (total individuals) is determined as at 31 December.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Employee turnover | % | 9.7 | 9.8 | 8.6 |
| Average number of employees | number | 2,302 | 2,253 | 2,203 |
| Employee outflow, KLH | number | 223 | 214 | 183 |
| Employee outflow, RKE | number | 1 | 7 | 5 |
| Employee outflow, CAI | number | 0 | 0 | 2 |
| Employee outflow, men | number | 128 | 140 | 125 |
| Employee outflow, women | number | 96 | 81 | 65 |
| Employee outflow, 0-25 years | number | 41 | 24 | 21 |
| Employee outflow, 26-35 years | number | 42 | 50 | 49 |
| Employee outflow, 36-49 years | number | 90 | 88 | 84 |
| Employee outflow, 50-99 years | number | 51 | 59 | 36 |
| Employee inflow, KLH | number | 282 | 252 | 278 |
| Employee inflow, RKE | number | 2 | 8 | 6 |
| Employee inflow, CAI | number | 0 | 0 | 0 |
| Employee inflow, men | number | 168 | 152 | 173 |
| Employee inflow, women | number | 116 | 108 | 111 |
| Employee inflow, 0-25 years | number | 56 | 42 | 35 |
| Employee inflow, 26-35 years | number | 88 | 66 | 74 |
| Employee inflow, 36-49 years | number | 112 | 116 | 136 |
| Employee inflow, 50-99 years | number | 28 | 36 | 39 |
The 2.7% increase in the number of individuals is comprised of an increase in the employee outflow by 4.2% and a 12% increase in the employee inflow. This resulted in an employee turnover rate that was largely unchanged from 2013 to 2014.
The number of employees working under collective bargaining agreements is determined on the basis of CPH's own records as the number of hourly paid employees whose employment conditions are regulated by collective bargaining.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Employees covered by collec | ||||
| tive bargaining agreements | % | 67 | 68 | 68 |
| Employees covered by collective | ||||
| bargaining agreements |
Employee representation on formal committees is determined as the number of employees who have hours recognised for participation on formal committees such as the works council, local communication committees, the health and safety committee, local health and safety groups and the like. Representatives on the committees are divided into employees and managers. Employee-elected representatives on CPH's Board of Directors are not included in the calculation. The same employee may participate in both committees. As at 31 December 2014, two deputy directors and one employee participated in both committees.
| number | 1,542 | 1,521 | 1,515 | Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|
| Total number of participants | ||||||||
| in formal committees | number | 119 | 125 | 116 | ||||
| Employees on works council | number | 30 | 29 | 27 | ||||
| Managers on works council | number | 8 | 7 | 7 | ||||
| Employees on health and safety | ||||||||
| committee | number | 48 | 51 | 48 | ||||
| Managers on health and safety | ||||||||
| committee | number | 33 | 38 | 34 |
The number of injuries is the annual number of reported injuries causing one or more days of absence. The occupational injury frequency rate is calculated as the number of occupational injuries per one million actual working hours.
Days lost due to illness are determined on the basis of CPH's absence systems.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Absence due to illness | % | 4.76 | 4.87 | 5.30 |
| Days lost due to | ||||
| occupational injuries | % | 0.15 | 0.17 | 0.17 |
| Rate of injury | number per 1 million | |||
| working hours | 16.5 | 15.0 | 15.9 | |
| Occupational injuries | ||||
| involving lost days | number | 59 | 52 | 54 |
The increase in rate of injuries is due to a minor increase in non-serious occupational accidents, while the number of serious occupational accidents has declined.
Health promoting activities are determined as the number of persons who have participated in health promoting activities.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Health examinations Physiotherapy treatments/ |
number | 340 | 341 | 344 |
| massages | number | 792 | 799 | 380 |
In CPH's annual engagement survey, all employees are encouraged to respond to a number of statements regarding development, communications and collaboration, culture and values, psychological working environment and strategy. The 2014 survey was conducted in September-October. The score of the engagement index is an average for a number of statements directly related to job satisfaction.
All permanent employees, including long-term substitutes, working at CPH as of 1 August 2014 were eligible to participate in the survey and received an e-mail about the survey. This did not apply to employees leaving the Company.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Employee engagement (job satisfaction index, |
||||
| average score) | scale 0-100 | 80 | 75 | 76.9 |
| Response rate | % | 94 | 87 | 84 |
For more information see page 37.
Information on employees such as age, gender etc. is generally based on CPH's HR system records, in which an employee's data are recorded from the date the employment contract is valid, and information is no longer included in the consolidated figures from the date an employee is no longer on the payroll.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Women in staff | % | 34 | 34 | 33 |
| Men in staff | % | 66 | 66 | 67 |
| Women in management | % | 25 | 27 | 25 |
| Men in management | % | 75 | 73 | 75 |
| Women on the Board of | ||||
| Directors (shareholder elected) | % | 17 | 17 | 17 |
| Men on the Board of Directors | % | 83 | 83 | 83 |
The number of women on maternity leave is determined as the number of women who have commenced maternity leave in the year. Paternity and parental leave is determined as the number of persons who have been on paternity or parental leave in the year.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Women on maternity leave | number | 13 | 11 | 13 |
| Men on paternity leave, 2 weeks |
number | 45 | 51 | 73 |
| Men on paternity leave, | ||||
| 2-10 weeks | number | 32 | 42 | 33 |
Information on employees such as age, gender etc. is generally based on CPH's HR system records, in which an employee's data are recorded from the date the employment contract is signed, and information is no longer included in the consolidated figures from the date an employee is no longer on the payroll.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Average age | year | 44.7 | 44.4 | 43.7 |
| +50 years | % | 31.1 | 29.2 | 27 |
| Average seniority | year | 8.7 | 8.4 | 8.1 |
| Employees, 0-25 years | number | 65 | 65 | 64 |
| Employees, 26-35 years | number | 310 | 317 | 359 |
| Employees, 36-49 years | number | 1,214 | 1,209 | 1,189 |
| Employees, 50-99 years | number | 717 | 655 | 591 |
| Managers, 0-25 years | number | 0 | 0 | 0 |
| Managers, 26-35 years | number | 14 | 14 | 14 |
| Managers, 36-49 years | number | 129 | 130 | 118 |
| Managers, 50-99 years | number | 70 | 57 | 52 |
CPH offers senior seminars, including individual counseling, i.a. pension and early retirement rules, when employees reach the age of 55 years. Subsequently it forms part of the annual staff development interviews. All employees aged +55 years are offered along with their partner to attend a senior seminar. The number of senior seminars are calculated as the percentage of employees aged 55+ who have participated in the seminar.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Seniorseminar | number | 0 | 12.8 | 0 |
No senior seminars were held in 2014.
Information on employees such as age, gender etc. is generally based on CPH's HR system records, in which an employee's data are recorded from the date the employment contract is valid, and information is no longer included in the consolidated figures from the date an employee is no longer on the payroll. Apprentices/ office trainees are defined as employees with a training agreement.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Apprentices/office trainees | number | 18 | 10 | 8 |
| Student assistants | number | 22 | 12 | 7 |
CPH has made a strategic decision to increase the number of apprentices and office trainees to 21 in 2015. The subsidiary target for 2014 was to reach 18, which was achieved.
The information on the employees' ethnic background has been obtained by merging CPH HR SAP data with the records of Statistics Denmark. The figures for 2014 were determined in November 2014. Immigrants are defined as persons born abroad, whereas descendants are persons born in Denmark. For both immigrants and descendants, none of their parents are both Danish citizens and born in Denmark. Persons of Danish origin are other persons, i.e. persons with at least one parent of Danish origin.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Persons of Danish origin | % | 91 | not calculated |
89 |
| Immigrants | % | 7 | not calculated |
8 |
| Descendants Diversity strategy |
% | 2 | not calculated |
3 |
| (new target for 2015) | - | n/a | n/a | n/a |
CPH strives for diversity among the employees and managers because experience shows that this results in improved well-being and more innovation. Therefore, in 2015 CPH will develop a diversity strategy which establishes the framework for how to strengthen the diversity among CPH employees.
As a result of CPH's continued systematization of responsible supply chain management, a new Contract Management strategy was approved by CPH in 2014. It involves the implementation of a new system to manage suppliers and their contracts, providing the opportunity to assess the suppliers regarding risk, quality and importance.
CPH has decided to incorporate the principles of the UN Global Compact in CPH's standard contract with the concessationaires in the airport shopping centre by the end of 2015.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Contract Management system | - | q. phase1 | n/a | n/a |
| UNGC in new contracts | - | a. phase2 | n/a | n/a |
1 In 2014, the work of implementing the Contract Management system reached the quotation stage.
2 In 2014, the work of incorporating UNGC principles into concessationaires standard contracts reached the analysis phase.
All security officers among CPH Security staff undergo a mandatory training that includes respect for human rights.
Discrimination cases are defined as number of inquiries regarding discrimination received by CPH.
Customer complaints concerning the right to privacy and sensitive information are defined as the number of complaints received regarding CPH's handling of customers' personal information and data.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Training of security personnel in | ||||
| human rights | % | 100 | 100 | 100 |
| Discrimination cases | number | 0 | 0 | 0 |
| Customer complaints about | ||||
| right to privacy and sensitive | ||||
| information | number | 1 | 0 | 0 |
In 2014, CPH recieved one complaint about right to privacy and sensitive information on the social media Twitter. The complaint was handled in accordance with CPH's procedure for the area.
The volume of CO² emitted (scope 1+2) is calculated based on the consumption of power, natural gas, district heating, consumption of fuel for vehicles and diesel generators, and emission factors for the individual sources of CO² . Emission factors are provided by VEKS (Vestegnens Kraftvarme Selskab) for district heating and by Energinet.dk for power. Emission factors for other sources of CO² are provided by the Danish Energy Authority. For power, natural gas and district heating, a rolling average for the five calendar years immediately before the reporting year is used.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| CO² per passenger, |
||||
| Scope 1 + 2 | kg | 1.2 | 1.3 | 1.4 |
| Total emissions | metric ton | 30,101 | 31,039 | 31,505 |
| Scope 1 | metric ton | 4,012 | 4,538 | 4,716 |
| • Gasoline |
metric ton | 19 | 26 | 30 |
| • Diesel |
metric ton | 1,852 | 1,995 | 1,995 |
| • Natural gas for vehicles |
metric ton | 0 | 0 | 0 |
| • Natural gas |
metric ton | 2,141 | 2,516 | 2,691 |
| Scope 2 | metric ton | 27,089 | 26,502 | 26,789 |
| • Power |
metric ton | 24,524 | 23,475 | 26,278 |
| • District heating |
metric ton | 2,564 | 3,027 | 3,016 |
| Passengers | number | 25,627,093 | 24,067,030 | 23,336,187 |
Consumption of gasoline and diesel decreased compared to 2013/2012. This was partly caused by a decline in snow clearing due to the meteorological conditions in 2014.
The determination of other relevant indirect CO² emissions (scope 3) is based on measurements, traffic counts, questionnaire surveys, key figures and assumptions. Based on materiality, assumptions were primarily used for the smallest sources.
The determination is limited to the island of Amager and, with respect to flights, to operations below an altitude of 3,000 feet. See "Aircraft emissions". It is also limited by source to utilities and transportation.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| CO² per passenger, Scope 3 |
kg | 12.3 | 12.7 | 13.2 |
| Total emissions | metric ton | 314,120 | 306,322 | 308,008 |
| District heating/electricity | metric ton | 23,332 | 24,398 | 27,707 |
| Aircraft emissions | metric ton | 252,980 | 245,175 | 244,568 |
| • Main engines |
metric ton | 239,009 | 231,623 | 230,413 |
| • APU |
metric ton | 12,374 | 12,037 | 11,942 |
| • Engine run-ups |
metric ton | 1,597 | 1,515 | 2,213 |
| Catchment area traffic | metric ton | 31,039 | 30,134 | 29,076 |
| Airside traffic | metric ton | 6,769 | 6,615 | 6,657 |
| Maintaining ACA accredita | accom | |||
| tion at minimum level 3 | - | plished | n/a | n/a |
Emissions from aircraft and miscellaneous traffic increased due to the increase in activity at the airport by 6.5% more passengers and 2.8% more aircraft operations.
In June 2014, CPH received the carbon accreditation at "Optimisation level" from the international aviation organisation ACI. "Optimisation level" is the highest level achievable without buying CO² quotas or the like, and it requires that an airport must calculate its CO² emissions and have declared carbon reduction targets. It must also engage with third parties to reduce its wider carbon footprint. Third parties can be airlines and various service providers, such as independent ground handlers, air traffic control or others working in the airport area. It also requires the involvement of authorities and passengers in matters relating to the airport's surface access modes (road, rail, metro).
CPH procures energy for the entire airport and distributes it to other companies within the airport area. CPH's energy consumption is calculated as the volume procured less the volume of energy distributed to other users. The consumption of diesel is adjusted for inventory change. Each type of consumption, including natural gas, is calculated based on own records checked against invoices received.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Direct energy consumption | MWh | 17,488 | 19,886 | 20,765 |
| Gasoline | m3 | 8 | 11 | 13 |
| Diesel | m3 | 698 | 752 | 752 |
| Natural gas | m3 | 955,914 | 1,120,885 | 1,199,477 |
| Natural gas for vehicles | m3 | 177 | 0 | 0 |
The consumption of gasoline and diesel were down relative to 2013/2012. This was partly caused by a decline in snow clearing due to the meteorological conditions in 2014.
CPH procures energy for the entire airport and distributes it to other companies within the airport area. CPH's energy consumption is calculated as the volume procured less the volume of energy distributed to other users. Each type of consumption, including power and district heating, is calculated based on own records checked against invoices received.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Indirect energy consumption | MWh | 78,675 | 81,502* | 82,981 |
| Power purchased | MWh | 97,691 | 97,463 | 98,659 |
| Power consumption | MWh | 53,430 | 51,843 | 54,181 |
| District heating purchased | GJ | 197,764 | 238,735 | 229,049 |
| District heating consumption | GJ | 90,882 | 106,772* | 103,681 |
* The amount for 2013 has been adjusted due to a measuring error in the calculation of the district heating consumption. The measuring error occurred during a major refurbishment.
The year effect of the energy-efficiency initiatives are assessed. The annual energy savings are calculated in kWh and divided between the electricity and heat saving (natural gas and district heating). The savings are calculated/attested by an external company, operating under the "Code of Conduct" of the Danish Energy Association.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Total energy savings Power |
MWh MWh |
3,273 1,936 |
3,608 1,933 |
3,082 2,654 |
| Heating, including natural gas | MWh | 1,337 | 1,674 | 428 |
The positive performance in energy savings was achieved through a high level of efforts. See page 40 for more information.
The amount of waste is calculated on the basis of annual statements from the waste recipients used.
The calculation comprises waste from the day-to-day operation of terminal areas, service areas and the administration at Copenhagen Airport. Waste from major building and construction projects is not included.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Recycling rate | % | 15 | 17 | 18 |
| Recycling | metric ton | 683 | 762 | 779 |
| Other recovery | metric ton | 3,409 | 3,312 | 3,208 |
| Disposal | metric ton | 409 | 314 | 292 |
| Total waste | metric ton | 4,501 | 4,388 | 4,280 |
The volume of waste increased in 2014 and the recycling rate decreased compared to 2013. This was due to the increase in passenger numbers and the fact that no major changes were made to the way waste is handled. In 2014, time was mainly spent on planning and improving a number of different projects scheduled for implementation in the next few years in order to meet the target of recycling at least 50% of waste by 2020.
Traffic performance is calculated on the basis of data in CPH's traffic statistics system and includes all aircraft operations (take-offs and landings), aircraft type, take-off
25 weight, use of runway and flight time. Number of operations is measured in local time, CET. The airlines deliver engine run-up reports to CPH, and data is transferred to the access-database. Recorded engine run-ups are compared with current conditions for engine testing.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Number of operations | ||||
| (in local time, CET) | number | 251,799 | 244,944 | 242,997 |
| Take-offs on Runway 12 | % | 0.3 | 0.0 | 0.2 |
| Landings on Runway 12 | % | 0.7 | 0.3 | 0.4 |
| Take-offs on Runway 30 | % | 0.2 | 0.3 | 0.2 |
| Landings on Runway 30 | % | 2.5 | 2.5 | 3.2 |
| Take-offs on Runway 04R | % | 39.1 | 37.9 | 29.7 |
| Landings on Runway 04R | % | 2.3 | 3.0 | 1.6 |
| Take-offs on Runway 04L | % | 0.2 | 0.6 | 0.7 |
| Landings on Runway 04L | % | 37.3 | 35.7 | 29.1 |
| Take-offs on Runway 22R | % | 56.1 | 56.4 | 63.5 |
| Landings on Runway 22R | % | 0.4 | 0.5 | 0.6 |
| Take-offs on Runway 22L | % | 4.2 | 4.8 | 5.6 |
| Landings on Runway 22L | % | 56.8 | 58.0 | 65.0 |
| Engine run-ups | number | 1,075 | 985 | 974 |
| of which idling | number | 655 | 577 | 472 |
| Deviations | number | 8 | 3 | 0 |
In 2014, engine testing occurred 1,075 times, of which 420 were engine run-ups and 655 were idle runs. This represents a minor increase in the number of engine run-ups and a major increase in the number of idle runs. In 2014, eight regulation deviations were reported to the environmental authorities.
The total noise exposure from take-offs and landings at the airport is calculated using the TDENL method, and calculations are based on each aircraft operation, including aircraft type and time of day, local time, CET. The calculations are based on the three months of the year with the highest level of traffic. TDENL is an acronym for Total Day Evening Night Level and is a method of calculation used for ongoing monitoring of noise exposure in and around airports and airfields. The method, which expresses the noise exposure in a single number, the TDENL value, is recommended by the Danish Environmental Protection Agency and is based on DENL, which is used for noise mapping around airports. DENL is the constant, equivalent A-weighted noise pressure level during an average 24-hour period with the addition of 5 dB for noise events during the evening (7.00 – 10.00 pm) and 10 dB for noise events during the night (10.00 pm – 7.00 am). In the airport's environmental permit, the Danish Environmental Protection Agency has set a threshold value equivalent to 147.4 dB in TDENL (with a tolerance of 1 dB) for noise impact.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| TDENL | dB | 144.5 | 144.4 | 144.7 |
On an annual basis, the number of aircraft operations increased by 2.8%. Traffic in the three busiest months increased from 66,888 operations in 2013 to 69,098 operations in 2014, representing a 3.3% increase, equivalent to 0.14 dB. The distribution of operations on day, evening and night, respectively, changed slightly from 2013 to 2014. Relatively, there were a few more take-offs during the day period in 2014; otherwise a slight year-on-year decline in landings during the day period was recorded in 2014.
The number of noise events resulting from night flights to and from Copenhagen Airport is monitored and logged by CPH's noise monitoring system.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Maximum level from take | ||||
| offs and landings during night period |
number | 19 | 23 | 22 |
In 2014, 19 noise events exceeding 80 dB were recorded. Ten noise events at 81 dB were registered, which are not reported to the Danish Transport Authority (DTA) as per the accounting policies.
Noise events at or above 82 dB (above or equal to 81.5 dB) are evaluated by CPH according to the terms of reference for the Advance Approval Committee for Night Traffic (FUNA). During the year, nine noise events of 82 dB or above were recorded. One noise event was passed on to the DTA. The DTA assessed that it was not a violation of the noise limiting provision as it was deemed that meteorology had a crucial impact on this noise registration. The other eight noise events were not submitted for evaluation by the DTA as per the terms of reference for FUNA.
The number of logged noise events above 80 dB was at a low level, as in previous years. This was mainly the result of the use of less noisy aircraft and airlines operating with consideration during the night period.
Air quality: The air quality at Copenhagen Airport is monitored and logged by CPH's air quality monitoring system in compliance with CPH's environmental approval of air quality for air traffic at Copenhagen Airport. The concentrations reported reflect the average of the mean figures for the year at Station East and Station West and are measured to show the air quality at the airport's perimeter fence.
Aircraft emissions: Emissions data from CPH's traffic statistics system are entered and tracked using an electronic data management system (EDMS) developed by the US aviation authorities. The EDMS includes performance and emissions data for a large number of types of aircraft and aircraft engines. Emissions are determined for aircraft operations below an altitude of 3,000 feet (approximately one kilometre).
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| NO | µg/m3 | 3 | 5 | 4 |
| NO 2 |
µg/m3 | 14 | 16 | 16 |
| PM 2,5 |
µg/m3 | n/a | 12 | 11 |
| CO | metric ton | 839 | 827 | 710 |
| NO X |
metric ton | 989 | 932 | 975 |
| SO X |
metric ton | 104 | 101 | 100 |
| THC | metric ton | 113 | 110 | 121 |
A reduction was seen in the air content of NO and NO2 . This was mainly attributable to external factors, as the level of activity at the airport did not go down, and as external sources have a great impact on the concentrations of these substances.
A defect occurred in 2014 in the equipment used to measure PM2,5. For this reason, it was not possible to generate an annual mean value that is comparable with previous years' measurements. However, it has been rendered probable that the level was below the threshold value of 25 μg/m3 .
On all parameters, a minor increase was seen in aircraft emissions. This was mainly due to the 2.8% increase in the number of aircraft operations.
Water consumption is calculated on the basis of volumes purchased/registered less volumes distributed on to other companies at the airport. Water is procured from public water supply companies.
The calculation also includes CPH's use of second-quality water from a remedial drilling.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Drinking water per passenger | litres | 7.5 | 8.1 | 8.6 |
| Drinking water | m3 | 191,285 | 188,381 | 200,561 |
| Second-quality water | m3 | 41,546 | 34,586 | 36,076 |
| Total consumption | m3 | 232,831 | 222,967 | 236,637 |
Most of the waste water is discharged to the Taarnby treatment plant, and a minor part is discharged to the municipality of Dragør. The quality of waste water is monitored by taking 24-hour samples every month. The water is analysed for COD, N, P, oil/grease, detergents, heavy metals and suspended matter.
The volume of waste water is determined on the basis of and equivalent to the volume of drinking water supplied and utilised measured volumes of water from remedial drillings.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Waste water | m3 | 354,483 | 360,802 | 363,283 |
| Lead | kg | 0.4 | 0.2 | 0.1 |
| Cadmium | kg | 0.0 | 0.1 | 0.1 |
| COD | kg | 130,058 | 137,623 | 123,016 |
| Detergents | kg | 540 | 713 | 725 |
| Copper | kg | 5.2 | 5.0 | 4.5 |
| Chromium | kg | 0.2 | 0.5 | 0.3 |
| Oil and grease | kg | 3,307 | 4,509 | 4,364 |
| Total-N | kg | 26,219 | 25,771 | 23,197 |
| Total-P | kg | 2,175 | 2,068 | 1,760 |
| Nickel | kg | 0.7 | 0.7 | 0.9 |
| Zinc | kg | 26.1 | 26.8 | 23.8 |
There are no significant deviations from the normal. Generally, there is a small trend towards decreasing water consumption, and with the increase in the number of passengers in the past years, it may cause a higher concentration of substances in the waste water.
The airport covers an area of 11.8 square kilometres. In order to ensure that the airport's runways, taxiways, aircraft stands and handling roads are kept free of rainwater, the airport has an efficient drainage system and large drainage ponds from which surface water is discharged to the Oresund via five outlets.
The largest contribution to surface water comes from the north area with terminals and aircraft stands, where most of the areas are paved. Water quality is monitored at each of the outlets by periodical analysis of 24-hour samples. The water is analysed for BOD, COD, N, P, fuel, heavy metals, glycol, ammonium and formic acid.
To minimise the discharge of oil components via the surface water system, approximately 143 oil separators have been set up in the airport area. A fixed procedure of regular sounding and emptying ensures an optimal removal of oil so that it does not end up in the surface water system.
The volume of surface water discharged into the Oresund is measured at the largest outlet and is calculated based on areas and precipitation data for the other outlets.
Oil and fuel spills: The number of oil and fuel spills is calculated as the number of reports filed by CPH's internal organisation or the fuel delivery companies. The calculation of the volume of spills is subject to some uncertainty, as it is rarely possible to measure the exact volume of a spill.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Surface water, | ||||
| total volume | m3 | 2,936,640 | 2,069,283 | 2,005,597 |
| Oil spills, number | number | 143 | 106 | 116 |
| Oil spills, volume | litres | 2,665 | 1,626 | 1,839 |
| Fuel filled | litres | 985,551,360 | 935,305,639 | 934,043,106 |
It is the year's rainfall on CPH's land that determines how much surface water is discharged into the Oresund. This means, there can be large variations in the amounts from year to year.
The number of recorded oil spills rose year on year. The total volume also increased. As these spills represent unintended events, there may be relatively large fluctuations from year to year.
The consumption of runway and taxiway de-icers is calculated on the basis of the volumes purchased as CPH has a consignment inventory.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Consumption of formiate | metric ton | 566 | 1,143 | 1,294 |
The volume of formiate used decreased in 2014. This was due to meteorological conditions, which meant that the need for runway de-icing was relatively low.
Copenhagen Airport is at its highest alert level during the winter season. Especially critical meteorological conditions at Copenhagen Airport are temperature fluctuations around zero degrees Celsius combined with precipitation or fog, as this implies a risk of ice formation on the runways, taxiways and aircraft. For safety reasons, it is therefore necessary to use de-icing agents at the airport during the winter season. The de-icing agent used at the airport, propylene glycol, is easily degradable and not hazardous to the environment in small quantities.
The airport has three de-icing platforms where aircraft are sprayed with a mix of glycol and water. Used de-icing liquid is collected from the platforms by drains and discharged into collection tanks.
The consumption is determined based on the actual volumes used by handlers.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Glycol used | m3 | 389 | 684 | 534 |
| Glycol collected | m3 | 197 | 377 | 294 |
The consumption of glycol is highly dependent on the weather, and consumption therefore varies widely over a number of years. Thus, the decline in 2014 was due to meteorological conditions.
The collection rate may for example be affected by how windy it is during the winter and during de-icing. Since 2008, the collection rate has varied from 48.5% to 65.5%.
The consumption of herbicides containing glyphosate is calculated on the basis of volumes purchased, adjusted for inventory change.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Herbicides |
Compared to previous years, the consumption in 2014 is reduced due to testing of non-glyphosate-based herbicides (technical acetic acid and the product Ecostyle). Tests will continue in 2015.
Traffic performance is calculated on the basis of data in CPH's traffic statistics system and includes all aircraft operations (take-offs and landings), aircraft type, take-off weight, use of runway and flight time. Traffic performance is measured based on local time, CET.
| litres | 147 | 178 | 196 | Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|
| Traffic performance, passengers | number | 24,082 | 30,384 | 29,804 | ||||
| Number of operations | number | 66,456 | 72,649 | 73,867 | ||||
| Take-offs on Runway 11 | % | 17.6 | 14.0 | 12.6 | ||||
| Landings on Runway 11 | % | 18.7 | 15.5 | 14.0 | ||||
| Take-offs on Runway 29 | % | 11.4 | 12.6 | 14.9 | ||||
| Landings on Runway 29 | % | 11.6 | 12.6 | 14.9 | ||||
| Take-offs on Runway 03 | % | 3.1 | 4.2 | 1.8 | ||||
| Landings on Runway 03 | % | 3.1 | 4.4 | 1.9 | ||||
| Take-offs on Runway 21 | % | 17.9 | 19.2 | 20.7 | ||||
| Landings on Runway 21 | % | 16.6 | 17.5 | 19.2 | ||||
| Engine run-ups | number | 390 | 498 | 444 | ||||
| of which idling | number | 145 | 195 | 217 | ||||
| Deviations | number | 0 | 1 | 0 |
In 2014, engine testing occurred 390 times, of which 245 were engine run-ups and 145 were idle runs. After a number of years with rising numbers of engine tests, the number of tests was down by 22% year on year in 2014. No deviations from the engine run-up provisions were seen in 2014.
The volume of CO² emitted (scope 1+2) is calculated based on the consumption of power, natural gas, consumption of fuel for vehicles and diesel generators, and emission factors for the individual sources of CO² .
Emission factors are provided by Energinet.dk for power. Emission factors for other sources of CO² are provided by the Danish Energy Authority. For power and natural gas, a rolling average for the five calendar years immediately before the reporting year is used.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Total emissions of CO² | metric ton | 534 | 630 | 657 |
| Scope 1 | metric ton | 215 | 271 | 249 |
| • Gasoline |
metric ton | 0 | 1 | 1 |
| • Diesel |
metric ton | 62 | 91 | 83 |
| • Natural gas |
metric ton | 153 | 179 | 166 |
| Scope 2 | ||||
| (power consumption) | metric ton | 319 | 359 | 407 |
CPH procures energy for Roskilde Airport. Roskilde Airport's energy consumption is calculated as the procured volume of natural gas. The consumption of diesel is adjusted for inventory change. The consumption is calculated based on own records checked against invoices received.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Direct energy consumption | MWh | 980 | 1,221 | 1,125 |
| Natural gas | m3 | 68,209 | 79,678 | 73,881 |
| Gasoline | m3 | 0 | 0 | 0 |
| Diesel | m3 | 23 | 34 | 31 |
CPH procures energy for Roskilde Airport. Roskilde Airport's energy consumption is calculated as the procured volume of energy. The consumption is calculated based on own records checked against invoices received.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Indirect energy consumption | ||||
| (power) | MWh | 695 | 792 | 840 |
The year effect of the energy-efficiency initiatives are assessed. The annual energy savings are calculated in kWh and divided between the electricity and heat saving (natural gas). The savings are calculated/attested by an external company, operating under the "Code of Conduct" of the Danish Energy Association.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Energy savings | MWh | 0 | 143 | 301 |
| Power | kWh | 0 | 142,500 | 21,481 |
| Natural gas | kWh | 0 | 0 | 279,367 |
No energy saving initiatives were implemented in Roskilde Airport in 2014.
CPH procures water for Roskilde Airport. Roskilde Airport's water consumption is calculated as the procured volume of water. The consumption is calculated based on own records checked against invoices received.
| Unit | 2014 | 2013 | 2012 | |
|---|---|---|---|---|
| Water consumption | m3 | 4,244 | 5,091 | 4,903 |
In 2014, the water consumption has decreased in line with the decrease in number of passengers.
CPH signed the UN Global Compact in 2011 and has since then reported on its progress in incorporating the ten principles into its operations and development. Below is described how each of the principles is integrated into CPH's strategies and processes. In the spring of 2015, CPH will be launching a website with information and easily accessible facts about how Copenhagen Airport is operated and developed in a responsible manner.
• CPH's business activities are only in Denmark, and all its employees are subject to Danish labour law. In accordance with this, employees are free to join associations and bargain on a collective basis. As described in collective labour agreements and local agreements, employees that are active on behalf of their trade union and/or the works council received paid time off to conduct these activities. For more information, see note 10 and note 11 to the non-financial statements.
• To meet its target of CO² -neutral growth, CPH must include environmental technologies in its airport development process.
The Group Annual Report – which according to section 149 of the Danish Financial Statements Act is an extract of the Company Annual Report – does not include the financial statements of the Parent Company, Copenhagen Airports A/S. The financial statements of the Parent Company have been prepared as a separate publication available at www.cph.dk/en.
The financial statements of the Parent Company form an integral part of the full Annual Report. The full Annual Report, including the financial statements of the Parent Company, will be filed with the Danish Business Authority, and copies are also available from the Danish Business Authority on request.
The allocation of the profit for the year including proposed dividend is described on page 62.
The full Annual Report has the following Management's statement and auditors' report.
The Board of Directors and the Executive Management have today considered and adopted the Annual Report of Copenhagen Airports A/S for the financial year 1 January – 31 December 2014. The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU, and the Financial Statements are prepared in accordance with the Danish Financial Statements Act. Moreover, the Consolidated Financial Statements and the Financial Statements are prepared in accordance with additional Danish disclosure requirements for listed companies.
Management's Review is also prepared in accordance with Danish disclosure requirements for listed companies.
CPHs non-financial statement, which includes social and environmental aspect, is prepared in accordance with the specific accounting policies thereto.
In our opinion, the Consolidated Financial Statements and the Financial Statements give a true and fair view of the financial position at 31 December 2014 of the Group and the Company, and of the results of the Group and Company operations and consolidated cash flows for the financial year 1 January – 31 December 2014.
In our opinion, the Management's review includes a true and fair account of the development in the operations and financial circumstances of the Group and the Company, of the results for the year and of the financial position of the Group and the Company, as well as a description of the most significant risks and elements of uncertainty facing the Group and the Company in accordance with Danish disclosure requirements for listed companies.
CPH's non-financial statements, which includes social and environmental aspect, is prepared in accordance with principles thereto. The non-financial reporting represents a balanced and reasonable presentation of the company's social and environmental performance.
Copenhagen, 26 February 2015
Lars Nørby Johansen Chairman
David Stanton Deputy chairman
Simon Geere Deputy chairman
Chris Ireland
Executive Management
Thomas Woldbye CEO
John Bruen
Janis Kong
Stig Gellert
Ulla Thygesen
Jesper Bak Larsen
To the Shareholders of Copenhagen Airports A/S
We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of Copenhagen Airports A/S for the financial year 1 January to 31 December 2014 pages 58-99 and pages 140-151, which comprise Income Statement, Assets, Liabilities and Equity, Statement of Changes in Equity and Notes, including summary of significant accounting policies, for both the Group and the Parent Company, as well as statement of comprehensive income and Cash Flow Statement for the Group. The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU, and the Parent company Financial Statements are prepared under the Danish Financial Statements Act. Moreover, the Consolidated Financial Statements and the Parent Company Financial Statements are prepared in accordance with Danish disclosure requirements for listed companies.
Management is responsible for the preparation of Consolidated Financial Statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for listed companies and for preparing Parent Company Financial Statements that give a true and fair view in accordance with the Danish Financial Statements Act and Danish disclosure requirements for listed companies, and for such internal control as Management determines is necessary to enable the preparation of Consolidated Financial Statements and Parent Company Financial Statements that are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on the Consolidated Financial Statements and the Parent Company Financial Statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and additional requirements under Danish audit regulation. This requires that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the Consolidated Financial Statements and the Parent Company Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Consolidated Financial Statements and the Parent Company Financial Statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the Consolidated Financial Statements and the Parent Company Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation of Consolidated Financial Statements and Parent Company Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of the Consolidated Financial Statements and the Parent Company Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
The audit has not resulted in any qualification.
In our opinion, the Consolidated Financial Statements give a true and fair view of the Group's financial position at 31 December 2014 and of the results of the Group's operations and cash flows for the financial year 1 January to 31 December 2014 in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for listed companies.
Moreover, in our opinion, the Parent Company Financial Statements give a true and fair view of the Parent Company's financial position at 31 December 2014 and of the results of the Parent Company's operations for the financial year 1 January – 31 December 2014 in accordance with the Danish Financial Statements Act and Danish disclosure requirements for listed companies.
We have read Management's Review in accordance with the Danish Financial Statements Act pages 3-57. We have not performed any procedures additional to the audit of the Consolidated Financial Statements and the Parent Company Financial Statements. On this basis, in our opinion, the information provided in Management's Review is consistent with the Consolidated Financial Statements and the Parent Company Financial Statements.
Copenhagen, 26 February 2015
Statsautoriseret Revisionspartnerselskab
Mogens Nørgaard Mogensen Brian Christiansen State Authorised State Authorised Public Accountant Public Accountant
We have been engaged by Copenhagen Airports A/S to obtain limited assurance on the non-financial information as expressed on pages 100-132 in the 2014 annual report, and to express a conclusion
The non-financial information in the 2014 annual report comprises CSR issues and impacts of the Company's airports in Copenhagen and Roskilde. The criteria for the preparation of the non-financial information and indicators appear from the non-financial accounting policies described on pages 104-130. The applied process for assessing materiality and defining contents of the non-financial information appear
from pages 105-107 in the 2014 annual report, and compliance with UN Global Compact appear from the UN Global Compact index on pages 131-132.
The non-financial information is the responsibility of Company Management, including the establishment of registration and internal control systems to ensure a reliable reporting basis, the preparation of acceptable nonfinancial accounting policies and the choice of non-financial information and indicators to be collected. Our responsibility is to express a conclusion on the reliability of information in the non-financial information.
We have planned and performed our work in accordance with the International Standard of Assurance Engagements (ISAE) 3000, (Assurance Engagements other than Audits or Reviews of Historical Financial Information), to obtain limited assurance that the non-financial information in the 2014 annual report is free of material misstatements and that the data and information have been stated in accordance with the non-financial accounting policies. The assurance obtained is limited, as our work compared to that of an engagement with reasonable assurance has been limited to, principally, inquiries,
interviews and analytical procedures related to registration and communication systems, data and underlying documentation.
Based on an assessment of materiality and risk, our work included:
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Based on our work, nothing has come to our attention causing us not to believe that
Copenhagen, 26 February 2015
Statsautoriseret Revisionspartnerselskab
Public Accountant
Brian Christiansen Jens Pultz Pedersen State Authorised M.Sc. (engineering)
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