SWISSPORT INTERNATIONAL AGCOMPANY PROFILE 2017
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THE WORLD‘S LEADING PROVIDEROF GROUND HANDLING AND AIR CARGO SERVICES
SWISSPORT IS THE GLOBAL LEADER IN GROUND HANDLING AND AIR CARGO SERVICES BASED ON REVENUE AND NUMBER OF AIRPORTS SERVED.In 2017 we provided ground services to 250 million passengers and handled 4.7 million tonnes of cargo on behalf of over 850 client companies. With a workforce of over 65,000 personnel, Swissport was active at 279 airports in 48 countries across the world.
Total revenue increased to EUR 2.8 billion in 2017. In the Cargo segment, revenue amounted to EUR 0.5 billion. Ground Handling contributed EUR 2.3 billion in revenue to the Group results.
Swissport Company Profile 2017 01
HIGHLIGHTS 2017
OPERATING EBITDA (EUR)
220M
OVERVIEW
OPERATIONAL HIGHLIGHTS FINANCIAL HIGHLIGHTS1
REVENUE (EUR)
2.8BNFLIGHTS HANDLED (MOVEMENTS)
>4.1M/YEAR
CARGO HANDLED (TONNES)
>4.7M/YEAR
2017 KEY ACHIEVEMENTS:
■ Announced the acquisition of Aerocare, the number one ground handler in Australia and New Zealand, executing on Swissport’s strategic growth plan.
■ Successfully completed an exchange offer and a new credit agreement. ■ Enhanced market share in the Middle East, with increasing success in Oman and Saudi Arabia.
■ Extended a number of contracts with major carriers.
1 AsperSwissportGroupS.àr.l.consolidatedfinancialstatementsfor2017.
OVERVIEW
Swissport Company Profile 201702
SWISSPORT AT A GLANCETHE WIDEST RANGE OF INTEGRATED SERVICES
WE PROVIDE OUR CUSTOMERS WITH A FULL RANGE OF MISSION-CRITICAL GROUND HANDLING AND AIR CARGO SERVICES. SWISSPORT DELIVERS SAFE, STANDARDISED, EFFICIENT AND HIGH-QUALITY OPERATIONS ACROSS THE GLOBE.Swissportcolleaguescanbefoundinpassenger services such as check-in, gatemanagement,securityscreening,lostandfoundandloungeservicesorinlogistical roles such as baggage handling, ramphandling,de-icing,cargohandling,warehousingorfuelling.
Wedeliverstandardised,efficient,high-qualityoperationsforourcustomersatallofourlocationsacrosstheglobe.
FollowingtheclosingoftheacquisitionofAerocareinMarch2018,Swissport’sglobal presence increased to 315 airports, in50countries.
WHAT WE DO
KEY FACTS
COUNTRIES
48CONTINENTS
5EMPLOYEES
>65,000
PASSENGERS SERVED
~250M/YEARAIRPORTS PRESENCE
279WAREHOUSES
133CLIENTS
>850CONTRACTS
>3,250
Swissport Company Profile 2017 03
GROUND HANDLING
SERVICES
■ Ground handling services
■ Baggage services
■ Gate and check-in
■ Stationmanagement
■ Crewadministration
■ De-icing
■ Fuelling
■ Security
■ Lounge operations
■ Maintenance
■ Executive aviation
■ Aviation passenger transport
In 2017 Swissport provided ground handling services at 191 airports worldwide, serving 250 million passengers. As the largest independent global ground services provider Swissport also operates a large number of hubs for full-service carriers and low-cost carriers around the world.
CARGO
SERVICES
■ Freight handling
■ Mailanddocumenthandling
■ Operationsandmanagement
■ Trucking
■ Warehousing
■ E-Freight services
Swissport Cargo Services is a world-leading cargo services provider with a global network and presence at 104 airports. In 2017 we handled 4.7 million cargo tonnes at our 133 warehouses around the globe.
KEY PILLARS OF GROWTH
ORGANIC CUSTOMER AND
SERVICE LINE GROWTH
LARGE OUTSOURCING
PROJECTS
SELECTIVE ACQUISITION
ACTIVITY
GREENFIELD DEVELOPMENTS
2017 2792010 178
+101
REPRESENTATION (AIRPORTS)
2017 14%2010 5%
~2.5x MARKET SHARE1
OPERATING FIGURES SINCE 2010
TWO DECADES OF SUCCESSFUL GLOBAL EXPANSION
1996 2000 2002 2004
101 153 166
19991998
OVERVIEW
Swissport Company Profile 201704
Swissport significantly expands its cargo handling business by acquiring Cargo Service Center B.V. with 61 stations in 15 countries.
The Company subsequently expands into the UK, Germany and Brazil. British private equity company Candover
purchases Swissport from Swissair Group.
Acquisition of Groundstar Ltd. adds five locations and doubles Swissport’s business volume in the UK.
Further global expansion to 130 locations in 25 countries.
Further expansion to Turkey and South Africa. Acquisition of DynAir in US and Aer Lingus Ground Handling in London.
NUMBER OF STATIONS
Swissport and KLM conclude five-year worldwide agreement covering 64 stations.
Major outsourcing agreements signed with SWISS and United Airlines.Awarded for best global Ground Handler five times in a row.
Swissport is incorporated in August 1996 in Switzerland with initial presence in Zurich, Geneva and Basel.
1 ProformaforSwissportandAerocareassumingatotalaccessiblemarketsizeofEUR21.7bn(CHF24.1bn)basedonRolandBerger’sindustryreportasof2017Edata,including both ground handling and cargo.
SWISSPORT IS THE GLOBAL LEADEROF GROUND HANDLING AND CARGOSERVICES FOR THE AVIATION INDUSTRY,BOTH BASED ON REVENUE AND THENUMBER OF AIRPORTS SERVED.
OUR HISTORYFROM LEADING OPERATOR TO GLOBAL PLATFORM
SWISSPORT IS INCORPORATED
GLOBAL EXPANSION GLOBAL EXPANSION UK EXPANSION
KLM CARGO, SWISS AND UNITED
CARGO SERVICES
CANDOVER
2017 482010 37
+11 GLOBAL FOOTPRINT (COUNTRIES)
2017 >8502010 >500
+350 CLIENT BASE (CUSTOMERS)
2017 2.82010 1.3
+1.5 REVENUES (bnEUR)
OPERATING FIGURES SINCE 2010
TWO DECADES OF SUCCESSFUL GLOBAL EXPANSION
2005 2010 2011 2018201520132012
180 266 315178 191
2006 20142016 2017
Swissport Company Profile 2017 05
Spanish construction company Ferrovial purchases Swissport from British private equity firm Candover.
Swissport acquires Globeground Korea adding Seoul to its network, as the third major station in its Asia Pacific network after Manila and Singapore.
Swissport substantially expands its global presence by acquiring the ground handling group Servisair.
Swissport wins contract as Ground Handling partner for Finnair’s Helsinki hub.
Major expansion in the Asia Pacific region: Swissport acquires Aerocare, the number one ground handler in Australia/New Zealand.
Swissport diversifies into the Security business via its acquisition of Protectas Aviation Security Ltd., today branded Checkport.
Swissport-Losch, a joint venture with Losch Airport Service, wins the handling of Lufthansa’s regional fleet as a major initial contract at the Munich hub.
Swissport acquires Flightcare Spain and Belgium.
Ferrovial successfully concludes sale of Swissport to PAI Partners.
Swissport invests in its fuelling business through the acquisition of a majority stake in AFS Aviation Fuel Services GmbH.
Swissport expands into the Middle East with start-ups in Saudi Arabia and Oman.
Cathay Pacific names Swissport Zurich best ground handling service provider in customer services world-wide for the second consecutive year.
Swissport awarded number one Air Cargo Handling agent for the 6th consecutive year.
Swissport expands its presence in Mexico to 28 stations via a Joint Venture with AGN Aviation Services.
Chinese HNA Group acquires Swissport from PAI Partners.
FINNAIR SERVISAIR HNA GROUP AEROCAREFERROVIAL
ASIA EXPANSION LUFTHANSA MUNICH FLIGHTCARE MEXICO EXPANSION
FUELLINGAVIATION SECURITY
PAI PARTNERS
OVERVIEW
Swissport Company Profile 201706
GLOBAL FOOTPRINTTHE INDUSTRY’S MOST COMPREHENSIVE NETWORK
OUR COVERAGE
OUR GLOBAL FOOTPRINT, COMPLEMENTED BY LOCAL EXPERTISE, ALLOWS US TO SUCCEED IN A VERY COMPETITIVE ENVIRONMENT. WITH OPERATIONS AT 279 AIRPORTS IN 48 COUNTRIES, SPANNING EUROPE, ASIA PACIFIC, THE MIDDLE EAST, AFRICA AND THE AMERICAS, WE HAVE A LARGER GLOBAL FOOTPRINT AND OFFER A WIDER RANGE OF SERVICES THAN ANY OF OUR COMPETITORS.
Ourglobalfootprint,complementedbylocalexpertise,definesoursuccessinaverycompetitiveenvironment.Withoperationsat279airportsin48countries,spanningEurope,Asia,theMiddleEast,AfricaandtheAmericas,weservealargerglobalcustomerbaseandofferawiderrangeofservicesthananyofourcompetitors.
FollowingtheacquisitioninMarch2018ofAerocareournetworkincreasedto315airportsand265millionpassengers.
Ourglobalnetworkallowsustooptimiseresource utilisation across our operations. Ithelpstominimisecosts,andenablesustoshareanddeployourglobalknowledgeandbest practices across our vast international network.Thisenhancesourconsistencyintheservicesweprovideourcustomersandmakesusmorecompetitive.
Ourglobalpresencealsoaffordsefficienciesinprocurementactivities,whichcanlowerthecostsofnewequipmentpurchases.TheoperationaleffectivenessofourserviceisactivelymonitoredandmeasuredbytheanalysisofKPIstoimproveourfinancialandoperationalperformance.
Our global presence and operational effectivenessalsoreducescertainofthecost burdens associated with entering newmarkets.
Wedeliverafullsuiteofhigh-qualityserviceswiththecapabilitytooffer“one-stop-shop”solutionsatourprimarylocations.Ourservicesareindividuallytailoredtomeetthespecificneedsofeverycustomer.Wehavestrengthenedourglobalservicedeliverywithakeyaccountmanagementteamthatensuresconsistencytoourcustomersacrossalllocations.Theexpertiseofourlocalmanagementteamsallowsustorespondquicklytochangesinlocalmarketconditions.
Thecombinationoflocalandglobalexpertisehasdrivenoursuccessinaverycompetitiveenvironment.Swissport’sgrowthcomesfromacombinationofadditionalbusinessinexistinglocationsandmarketentriesinnew locations, including Ghana, where we startedoperationsinlate2015.OurrecentacquisitionofAustralianAerocareinthe fast-growingAsiaPacificregionalsoservesasaplatformforfurtherregionalgrowth.
COUNTRIES
EMEA 29
Americas 16
APAC 3
EMPLOYEES
EMEA ~30,000
APAC ~3,000
Americas ~32,000
AIRPORTS
EMEA 148
Americas 123
APAC 8
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OUR GLOBAL NETWORK
SwissportasperDec2017 279
AerocareasperMar2018 36
Swissport 315
THE INDUSTRY’S MOST COMPREHENSIVE NETWORK
OVERVIEW
Swissport Company Profile 201708
MARKET REVIEWSWISSPORT IS WELL-POSITIONED TO TAKE ADVANTAGE OF CURRENT TRENDS IN THE GLOBAL AVIATION INDUSTRY
INCREASING DEMAND FOR AIR TRAVEL Globaldemandforbothpassengerandcargoairtravel is increasing and is expected to continue toincrease,withsomeestimatesindicatingapotentialdoublinginaircraftnumbersgloballybetween2015and2035.Thiswillleadtomoreflights,upwardpressureonturnaroundsandgreaterdemandforoutsourcedgroundhandlingservices.Forecastedannualgrowthinmarketvalueduringtheperiodfrom2017to2021isexpectedtobe4.6%forthegroundhandlingmarket,and5.8%forthecargohandlingmarket.Year-on-yearchangesinbothpassengervolumesandaircraftmovementstendtofollowchangesinGrossDomesticProduct(GDP).Aircraftturnarounds(whichprincipallydriverevenueinthegroundhandlingindustryandaremoreinsulatedfromchangesinGDPthanpassengervolumes)areforecasttofollowanupwardtrend, notwithstanding a general trend towards increasingaverageaircraftsizes.Webelievewe are well-positioned to capitalise on this predictedmarketgrowth,bothregionallyandinternationally,duetotheglobalreachofourbusiness operations and our extensive network ofrelationshipswithcarriersandairports.
DEREGULATION OF AVIATION SERVICES Thederegulationoflocalairportservicesinmanycountriesandregionshasopenednewmarketstoindependenthandlersandaffordedustheopportunitytoexpandournetworkandutiliseourglobalknowledgetoimproveaviationserviceprocessesatselectedairports.Forexample,anyEUairportwheretrafficexceedstwomillion
KEY DRIVERS
THE CONTINUED GROWTH ACROSS GROUND HANDLING AND CARGO MARKETS IS DRIVEN BY SEVERAL STRONG TRENDS: ■ INCREASING AIR TRAVEL DEMAND
AND CARGO VOLUMES
■ CONTINUING GROWTH IN THE NUMBER OF AIRCRAFT-IN-SERVICE AND AIRPORTS
■ CONTINUING TREND TO OUTSOURCE GLOBALLY
■ MARKETS BECOME ACCESSIBLE DUE TO DEREGULATION
■ FRAGMENTED MARKETS WITH STRONG CONSOLIDATION POTENTIAL
FORECASTED ANNUAL GROWTH GROUND HANDLING
4.6%
FORECASTED ANNUAL GROWTH CARGO HANDLING
5.8%
AVERAGE SAVINGS BY AIRLINES BY OUTSOURCING SERVICES
10–25%
OUTSOURCED GROUND HANDLING MARKET
40%(2007: 34%)
passengersor50,000tonnesoffreightperyeariscurrentlyrequiredtohaveatleasttwohandlingoperators,oneofwhichmustbeindependentfromtheairportoranydominantcarrierattheairport.Additionally,theEUisconsideringproposalsforfurtherderegulationinrespectofgroundhandling,theoutcomeandscopeofwhichiscurrentlyuncertain.Asaglobalindependentoperator,westandtobenefitfromsuchderegulationasmoremarketsbecomeopentous.
OUTSOURCING OF AIRPORT SERVICES Manyairlineshavesoughttofocusontheircorebusinessofpassengertransportation,particularlygiventheriseofthelow-costcarriers,whichseekto provide a less expensive alternative to consumersbyoperatingmoreefficientlyatalowercost.Weestimatethatairlinescanonaveragesave10–25%oftheircostsbyoutsourcingtheirairportservices. Outsourcing has and will continue to playanimportantroleintheaviationandairportservicesindustry.Manyairlinesthatpreviouslyhandled their own ground operations and cargo areintheprocessofoutsourcingthoseservices,including,bywayofexample,UnitedAirlinesExpress and Frontier in the United States, which havealreadyoutsourcedsomeoftheseservices.Airlines have also started to outsource services at largehubstobenefitfromgreaterproductflexibilityandloweroperatingcosts,aswellasallowingthemselvestofocusontheircorebusiness.Withourleadingpositionat279airportsand in thirteen hubs around the globe, we believe weprovideanunrivalledserviceoffering,includinghubmanagement,toairlineslookingto Source:RolandBergerindustryreport
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renewalinApril2017ofalong-termagreementwitheasyJetatitsGenevahub.
INCREASING USE OF TECHNOLOGY Thedependenceupontechnologyinthewideraviationindustry,includingtheautomationofpassenger, ground and cargo handling services, continuestoincrease.Accordingly,developmentanduseoftechnologyremainsacorepriorityofourbusiness,andweconsiderourselvestobeanindustryleaderinthedevelopmentandimplementationoftechnologicaladvancements.Suchadvanceshaveincludedself-serviceapplications,suchaskiosks,web,mobileandoff-airportcheck-incombinedwithbag-dropservices.
outsourcegroundoperations.Weestimatethat60%ofgroundhandlingservicesarestillcarriedoutbyairlinesthemselvesratherthanbeingoutsourcedtothird-partyproviderssuchasSwissport.
INCREASED PRESENCE OF LOW-COST CARRIERSLow-costcarriers,suchasRyanairandeasyJet,aregainingmarketshareworldwideandhaveachievedsignificantgrowthinrecentyears.Low-costcarriersareheavilyfocusedonefficient,low-costoperationsandhavebeenattheforefrontofoutsourcinggroundhandlingneedstothird-partyproviders.Webelievewehavethenecessaryinfrastructure,resources,operationalexcellenceandaswell,theflexibilitytoservethegrowingnumberoflow-costcarriersand capitalise on such outsourcing opportunities. Weoffertheseclientsbespoke,customisedservices.RyanairandeasyJetweretwoofourlargestcustomersbyrevenueinthetwelvemonthsended31December2017.Ourabilitytocatertolow-costcarriersisunderlinedbyour
Aspire–Swissport’sglobalairportloungebrand
Swissport Company Profile 201710
STRATEGIC REVIEW
THE SWISSPORT BUSINESS MODELDIVERSE AND RESILIENT
WHAT WE OFFER
SWISSPORT IS THE WORLD’S LEADING INDEPENDENT PROVIDER OF GROUND HANDLING AND AIR CARGO SERVICES BASED UPON REVENUE AND NUMBER OF AIRPORTS SERVED.
Wehaveadiversebusinessmodelwithaglobalpresence,adiversifiedcustomerbaseandawiderangeofserviceofferings.Thisspansthefullrangeofgroundhandlingactivitiesfromde-icingandfuellingtoairportlounges,andincludeswhatwebelieveisouruniqueabilitytooffer“one-stop-shop” services at a hub level.
Ourdiverseandresilientbusinessmodelhelpstomitigatecyclicaltrendsintheaviationindustry.
Withoperationsacrossawidevarietyofemergingmarkets,whereweseestronggrowthpotential,includinginEasternEurope,Africa,AsiaandtheMiddleEast,webelievewewillcontinuetobeabletomitigatethenegativeimpactofdownturnsinthemoredevelopedmarketsinwhichweoperate,suchasduringtheglobaleconomiccrisis.Ourdiversifiedcustomerbaseconsistsofmorethan850customersworldwide,rangingfromestablishedmultinationalairlinestolow-costcarriers,regionalcarriers,airportsandfreightforwarders.
Swissport’stop-10customersaccountfor30%oftheGroup’srevenueandevenourlargestcustomercontributesonlyasingle-digitpercentageshareofourrevenue.
Asofyear-end2017,wehadmorethan3,250servicecontractsinplace.Aspartofourbusinessmodel,weseektoleverageour strong relationships with various airline customerstoenterintoframeworkagreementstoprovideafullrangeofgroundhandlingand cargo services when these airlines enter marketsinwhichwealreadyoperate.
Ourbusinessmodelaffordsusasignificantcost and service advantage. We seek to create closerpartnershipswithkeycustomerstoenableustomovefromprovidingsingleairportor network packages to integrated hub and basemanagementserviceswithaviewtofulloutsourcing.Webenefitfromasecuresourceofunderlyingrevenuebyprovidingservices
thatarecriticaltoourcustomers’ownbusinessoperationsandreputation.Bynature,particularlypassenger-facinggroundhandlingservices,includinghubmanagement,areacriticalpartoftheefficientandeffectiveoperationofourcustomers’businesses.Andcargohandlingservices, too, are critical to passenger airlines astheyrelyheavilyonfreightvolumestoincreasetheprofitabilityoftheirroutes.
OUR DIVERSE AND RESILIENT BUSINESS MODEL HELPS TO MITIGATE CYCLICAL TRENDS IN THE AVIATION INDUSTRY.”
COM
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CIA
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AM
EWO
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AIRLINE PARTNERS ■ Enhancedproductivity,quality,efficiency
■ Protectandstrengthencustomers’brands
■ Global reach and local expertise
■ Clearfocusonhealth&safetyanditscontinuousimprovement
EMPLOYEES ■ Professionaldevelopment
■ Personal growth
■ Equal opportunities
■ Superior training
AND DELIVERS STAKEHOLDER VALUE
THE SWISSPORT FORMULA CREATES A SUSTAINABLE COMPETITIVE ADVANTAGE…
UNDERPINNED BY
1FULL RANGE OF
MISSION-CRITICAL SERVICES
SOLID OPERATIONAL
STRUCTURE
INNOVATION LEADERSHIP
GLOBAL IT SYSTEMS
6PRICING DISCIPLINE
AND RISK MANAGEMENT
5STRONG CUSTOMER
RELATIONSHIPS
2MARKET
COMPETITIVE COST BASE
3SAFE AND INDUSTRY-LEADING OPERATIONS
ACROSS THE GLOBE
4GLOBAL REACH
Swissport Company Profile 201712
STRATEGIC REVIEW
OUR STRATEGY: PROFITABLE GROWTH THROUGH SERVICE EXCELLENCE AND COST LEADERSHIP
OUR STRATEGIC INITIATIVES
SUPERIOR SERVICE QUALITYWeseektomaintainandfurtherdevelopourexistingnetworkbycontinuingtofocusonourbrandandcorestrengths.Weseektoadapttomarketchangesbyofferingstate-of-the-artservicesandproductsandmovingintonewmarketsandregions,anapproachthatwewillcontinuetopursue.Forexample,wewereoneofthefirstaviationservicesproviderstooffertechnologicalinnovationssuchaswebandmobilecheck-in.
ACTIVE RELATIONSHIP MANAGEMENTOurbusinesshasgrownconsistentlysinceitsfoundingandcontinuestogrowprofitably.Thisgrowthhasbeendrivenbyanexpansionofourexistingoperationsincertainofourkeymarketsandthestrengtheningofourrelationshipswithkeycustomersacrosstheglobe.Airlinescontinuetooutsourceabroadrangeofservicesattheirmainhubstobenefitfromloweroperatingcostandwearethepreferredindependentproviderofglobalgroundhandlingandcargoservices,offeringa“one-stop-shop”service.
GROWING WITH OUR CUSTOMERSWehavealsobeenpromotingexpansioninexistinglocationsbyenteringintoframeworkagreementswithairlineclients.Theseagreementscontainexistingtermsfortheprovisionofarangeofgroundhandlingandcargoservicesthatapplywhenevertheseairlinesexpandtonewlocationswherewealreadyofferourservicesandhaveinfrastructureinplace.Wecontinuetoselectivelyclosethegapsinournetworktoofferamorecompletecoverageandawiderportfolioofservicesateachairportweserve.
STRENGTHEN LEADERSHIP AND GROW PROFITABLY IN CORE MARKETSBydeliveringoperationalexcellenceandenhancingourserviceoffering,weseektoleverageonourexistingportfolioandseizenewopportunitiesastheyarise.
OUR VISION
WE AIM TO BE THE AVIATION INDUSTRY’S MOST TRUSTED SINGLE-SOURCE GROUND SERVICES AND CARGO HANDLING PROVIDER.
MISSION
TO PROVIDE THE AVIATION INDUSTRY WITH INNOVATIVE SOLUTIONS AND A SUPERIOR SERVICE EXPERIENCE OF CONSISTENT QUALITY AROUND THE GLOBE.
Swissport Company Profile 2017 13
OUR STRATEGIC INITIATIVES
GREENFIELD EXPANSION Inadditiontoourcontinuedfocusongrowthinlocationswherewearealreadyactive,weseektoenternewmarketsorfurtherdevelopourexistingbusinessthroughgreenfieldprojectsorselectedacquisitions.Wemaintainadisciplinedandrisk-basedapproachtoevaluatingthecommercialrationaleandbenefitofallpotentialexpansions.Tothisend,wecontinuetofocusondevelopingexistingexpansionprojects,includingmarketentriesinselectedlocationsinWesternandEasternEurope,Africa,LatinAmerica,theMiddleEastandAsiaPacific.
PARTNERING THROUGH JOINT VENTURESWherearerequiredbylocalregulationsordeemedbeneficialfromabusiness perspective, we will seek to expand our presence through jointventures,providedattractivemarginscanbeachieved.Enteringintojointventuresinnewmarketscanbebeneficialfromariskmanagementperspective,asitenablesustotakeadvantageofthelocalknowledgeofourjointventurepartners.Oneexamplehereisourstart-upoperationinOmaninApril2017.
OUTSOURCING AND DEREGULATIONWeaimtocapitaliseonthetrendofairlinesoutsourcinggroundhandlingandcargoservices.Wealsoexpectmoreopportunitiesformarketentries,arisingfromderegulation,whichwebelievewillyieldapositiverevenuecontributioninthenextfewyears.OurnewoperationinSaudiArabiaisonesuchexample.WebelieveSwissport is well-positioned to capitalise on such opportunities, duetoitsleadingmarketpositionanditsfocusoncustomervalue.
HARMONISING OUR IT INFRASTRUCTUREIn2015,Swissportkicked-offamajorprojecttocentraliseandharmoniseitsITinfrastructure.ThenewglobalITinfrastructureistocontributetoanimprovedcustomerserviceonthebasisofacost-efficientandstate-of-the-artdesign.Theprojectiswellunderwayandshouldbeconcludedin2019. EMPOWERING OUR FRONT-LINE STAFFInadditiontostafftraininganddevelopment,innovationandtechnologyalsoplayacentralroleincustomerservice.Ourstaffareequippedwithhand-heldterminalsinthegroundhandlingandcargobusinesses,forexample.Theseallowforafasterscanningofcargoand luggage. STATE-OF-THE-ART CARGO WAREHOUSESTechnologyalsoplaysanincreasinglyimportantroleinmoreclassicalinvestmentprojectssuchasincargowarehouses.Swissportoperatesatotalof133warehousesworldwideandkeepsaddingstate-of-the-artfacilities,whereitseesuntappedopportunitiestoprofitablygrowitsbusiness. In2016weopenedanewwarehouseinGhana,followedin2017byacargofacilityatChicago’sO’Hareairport,thelattercertifiedunderIATA’sCEIVlabelforpharmaceuticallogistics.
SWISSPORT2020 OPERATING STRUCTUREWearepresentlyreviewingandredesigningSwissport’sbusinessprocessesandstructuresonastationlevel,withtheobjectiveofestablishing an enhanced standard operating structure at our airport locations.
ThissupportsaconsistentdeliverytowardstheprinciplesoftheSwissportFormulaandenhancesthequalityofourservices.Theprocesseswillbemoreefficientandimproveouroperatingcost structure. COMMERCIAL GOVERNANCEBymaintainingpricingdisciplineandcontractgovernance,wepursueanactivemanagementofourcommercialportfolioacrosstheorganisation.Wefocusonagreementswhichcontributevaluetoourbusinessandapplycorrectivemeasurestothosenotviable.Thisaddsstabilitytoournetwork,whichistothebenefitofourclients. INNOVATION AT OUR LAB STATIONSTechnologyandinnovationhelpenhancethecustomerexperience.Theyalsocontributetosimplerprocesses,torealisingcostsavingsand–longterm–canhelptapnewrevenuesources.InourSwissport“LabStations”,wearetestingnewconceptsatanearlydesignstageandunderconditionswhichcomeclosetoa live operation.
EXPAND PRESENCE IN EMERGING MARKETS
Weselectivelyrealisebolt-onacquisitionsandopportunitiesforoutsourcingandgreenfielddevelopmentwhiletakingadvantageofderegulation.
INVEST IN PEOPLE, INFRASTRUCTURE AND EQUIPMENTWeinvestintraining,state-of-the-artfacilities,ITsystemsandequipmenttofurtherenhanceourservicedelivery.
EXECUTE COST DISCIPLINE AND COMMERCIAL GOVERNANCE
Costmanagement,pricingandcommercialgovernanceareakeyfocusofourorganisation.
Swissport Company Profile 201714
STRATEGIC REVIEW
CASE STUDY HUB MANAGEMENT IN GENEVA
STRATEGY IN ACTION: STRENGTHEN LEADERSHIP AND GROW PROFITABILITY IN CORE MARKETS
Webuildlong-termcustomerandcontractrelationshipsbasedontrust,qualityandefficiency.
InApril2017,followingover12yearsofsuccessfulcollaboration,SwissportandeasyJetrenewed their ground handling services contract foreasyJet’sGenevaoperation.SwissportprovideseasyJetwiththefullrangeofmission-criticalground handling services including its passenger servicesandramphandling,baggageservices,operations coordination and load control.
Operatinganetworkof78destinationsinEuropeandNorthAfrica,easyJetisthenumberonecarrieratGenevaairport.Theairlinecarriesmorethan81millionpassengersannuallyandfliesover280aircraftonmorethan890routestoover140airports.
Therenewalofthislong-termagreementwitheasyJetfollowedarigorousselectionprocessandistheresultofawell-establishedmutualcooperationbetweeneasyJetandSwissport.TheextensionofthecontractallowsSwissporttoconsolidate its position as the leading ground handling services provider at Geneva Airport and thelargestemployerinthelocalaviationsector.
Ontheoccasionofthecontractrenewal,SwissportGenevaCEO,Mr.AntoineGervaisstated:“WeareproudtocontinuetoserveeasyJetwithprofessionalandefficientgroundhandling
services.Wearekeentodrivebothcustomerservicesatisfactionandfutureinnovationtoensuresuccessfuloperationsinthisfast-growingbusinesssegment.Furthermore,ourcollaborationconfirmsthepositionofSwissportasoneofeasyJet’spreferredgroundhandlingproviders.”
SimonCox,easyJetHeadofAirportandCentralProcurementstated:“easyJetandSwissporthavebeenlong-termpartnersandwearereallyhappytorenewourcontractforeasyJetoperationsinGeneva.FromanetworkperspectiveSwissportoperatesgroundhandlingforeasyJetin27airportshelpingtheairlinestomaketravel easyformillionsofourpassengerseveryyear.”
Swissport Company Profile 2017 15
Swissport Company Profile 201716
STRATEGIC REVIEW
CASE STUDYAEROCARE ACQUISITION
InMarch2018,SwissportacquiredAerocare,thenumberoneindependentgroundhandlingoperatorin Australia and New Zealand and its subsidiaries Skycare,Carbridge,andEasyCare.ThisacquisitionexpandstheGroup’sinternationalfootprintwithintheAsiaPacificmarketanddeliversakeyplatformfortheCompanytostrategicallyexpanditsreachintothisregion.
FollowingtheacquisitioninMarch2018ofAerocare our network increased to 315 airports and265millionpassengers.
STRATEGY IN ACTION: EXPAND PRESENCE IN EMERGING MARKETS
Foundedin1992,Aerocareiscurrentlythemarketleaderintheregion.HeadquarteredinBrisbane,Australia,thecompanyemploysover3,000staffandprovidesservicestomajordomesticandinternational airlines at airports across Australia and New Zealand. Swissport, via its Aerocare acquisition,gainsaccesstoaveryattractiveclientbase.Aerocaremanagesover160,000flightsandservessome15millionpassengersannually.Thisaddsroughly6%toSwissport’soverallvolumeofpassengers served across its global network, raisingitto265millionincludingAerocare.
Toensurecontinuityinservicequalityandinclient-relationsmanagementtheAerocaremanagementteamwillcontinuetorunthebusinessinAustraliaandinNewZealandfromitsBrisbaneoffice.TheAerocareteamwillalsoplayakeyroleinfurtherdevelopingtheSwissportorganisation both in Australia and New Zealand andinthegreaterAsiaPacificregion.
“TheintegrationofAerocareintoSwissportisakeymilestoneintheexecutionofourgrowthstrategy,”saidEricBorn,GroupPresident&CEOofSwissport.“Aerocareprovidesuswithanentrance into Australia and New Zealand and it willserveasourplatformtoexpandinthefast-growingAsiaPacificmarkets.”
GlennRutherford,CEOofAerocare,said:“JoiningSwissport,theworldleader,isanextraordinaryopportunityforAerocareandourteam.Bothbusinessesaredeeplyfocusedonthedevelopmentofourpeopleandondrivinginnovationinsafety,serviceandquality,andIlookforwardtowhatwecanachievetogetherinour region.”
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AEROCARE’S KEY METRICS
EMPLOYEES:
~3000AIRPORT PRESENCE:
36FLIGHTS:
~161K/YEARPASSENGERS:
~15M/YEAR
Swissport Company Profile 201718
STRATEGIC REVIEW
CASE STUDYGHANA’S STATE-OF-THE-ART WAREHOUSE FACILITY
STRATEGY IN ACTION: INVEST IN PEOPLE, INFRASTRUCTURE AND EQUIPMENT
InlinewithSwissport’sfocustoinvestintoinfrastructureforenhancedservicequality,wehaveinvestedinnewfacilitiestomeettheexpectationsandrequirementsofourcustomers.
In2016,weopenedournewcargocomplexinGhana–oneofthefastestgrowingcountriesintheworld.Thecargofacilityiscomposedofawarehouseof1,000sqmdedicatedtotheexportofperishablegoodsand6,000sqmdedicatedtostorageandhandlingofimportcargo. Ourstate-of-the-artcargocomplexhandlesapproximately32,000tonnesperyearandisequippedwithafullyautomatedstorageandretrievalsystem,atemperature-controlledPharmaroomandabullionstore,allsupportedbyfullyintegratedIToperatingsystems,includingbarcodescanningandreal-timemonitoringintheformofourpatentedCargoiQsystem.
In2017,Swissportwasawardedthe“GroundHandling–AirCargooftheYear”awardbythelocalMinisterforTransportandtheGhanaShippers’Authorities.Withthesuccessfuldeploymentanduseofoursophisticatedandsecureoperatingsystems,SwissporthasattractedmajorcustomersintheaircargoindustryinGhana, including Air France, Brussels Airlines, Cargolux,DHL,KLM,TurkishAirlinesandQatarAirwaysandhandlesover60%ofthelocalaircargomarket.
Swissport Company Profile 2017 19
Swissport Company Profile 201720
STRATEGIC REVIEW
CASE STUDYSWISSPORT LAB STATIONS
STRATEGY IN ACTION: EXECUTE COST DISCIPLINE AND COMMERCIAL GOVERNANCE
In2017,weestablishedadedicatedinnovationteamatSwissport.TheteamhasbeenworkingwithSiliconValley-basedstart-upaccelerator“PlugandPlay”,apartnershipthatprovidesuswithaccesstothestart-upeco-system.Thisputsusintouchwithaflowofinnovativeideasandtechnologywecanimplementbeneficiallytoenhance service levels and reduce our cost.
Innovationiskeytomaintainingourindustry-leadingposition.InourownSwissport“LabStations”,wearetestingnewconceptsatanearlydesignstageandinconditionswhichcomeclosetoaliveoperation.Movefast,failfastandhencesucceed sooner.
MOBILE WORKFORCE ALLOCATIONArecentexampleofa“PlugandPlay”projectisamobileworkforceallocationandengagementplatform.Byleveragingmobiletechnologyandamodernuserexperienceapproach,thissolutionallowsSwissportstationstobetterallocatestaffinthedynamicairportenvironmentandhenceincreaseoperationalefficiencyandreliability.
We work with the start-up to evaluate new hardware,suchassmartwatches,toexplorethesuitabilityinouroperationalcontext.Atthesametime,weareabletoengageourworkforcebetterbyestablishingadirectlinkviaamodernsolutionbeyondthetraditionalwalkie-talkies.
COMPUTER-VISION ENABLED TIME STAMPSWearealsoliningupaprojectlookingatusingcomputer-visiontodetectaircraftturnaroundtimestampsfromCCTVfootage.Thiswouldaddtomoreefficientprocessmonitoringontheairporttarmac,speed-updelayanalyticsandcontributetomoretransparentcompensationprocesses.
CORPORATE RIDE-SHARINGInMarch2018,ourSwissportLabStationatWashingtonD.C.’sDullesAirportstartedatrialwithacorporateride-sharingtool.Theaimofthetrialistodetermineifanalternativeoptionforthedailycommuteofourstaffcancontributetowardsjobsatisfactionandreducedturnover.Corporateride-sharing would also contribute towards areductionofsubsidiesforstaffparkingand stafftransportation.
Swissport Company Profile 2017 21
INNOVATIVE TECHNOLOGY
TO SUPPORT SUPERIOR QUALITY OPERATIONS GLOBALLY
PERFORMOne standardised web-based Dashboard withSwissportStandardKPIs.
CENTRALISED LOAD CONTROLProvisionofLoadControlServicesforSwissportstationsworldwide,providedbythree centralised units.
REAL-TIME STAFF DISPATCHDispatchingstaffdirectlyfromoperationscentrereal-timeviadedicatedtaskassignmentonhandhelddevices.
WEBROSTERState-of-the-artrosteringapplicationwithAutoRosterfunctionalityautomatingthecreationofshiftplans,allowingstafftoenteronlinepreferencesforshifts.
Swissport Company Profile 201722
STRATEGIC REVIEW
CHAIRMAN’S STATEMENT2017 WAS ANOTHER YEAR OF SUCCESS FOR SWISSPORT
Dear Investors,Dear Readers,
2017wasanotheryearofsuccessinalineofsuccessfulyearsforSwissport.Beyondthat,itwasalsoayearofsignificantprogresstowardstheCompany’sstrategicgoalofatrulyglobalmarketpresence.Attheendof2017Swissportoffereditsmarket-leadingservicesat279airportsin48countries.WithitsEBITDAalsomarkedlyhigher,Swissport’s2017revenuegrowthwasofaprofitablenature.
AndSwissportraisedthebarfurtherinMarch2018:WiththeintegrationofAustraliangroundhandlerAerocare,theSwissmarketleaderisnowpresentat315airportlocationsin50countries,makingittheundisputedglobalmarketleaderinground services and air cargo handling.
DR. THOMAS STAEHELIN
CHAIRMAN SWISSPORT GROUP S.à r.l.
Goingforward,wecontinuetoseeaverycompellingequitystoryforSwissport.ThemarketsforbothGroundHandlingservicesandCargoHandlingservicesaredevelopinglargelyinline with the overall air transport sector, which hasbeenrecordingannualgrowthratesofthreetofivepercentoverthepastdecade.Industryforecastscontinuetoseethesectoronalong-termgrowthtrajectory.AddingtothemixSwissport’sglobalnumberonemarketpositionandthetrendto liberalisation, which we can see in various countries,ouroutlookfortheCompanyremainsveryfavourable.
Swissport Company Profile 2017 23
Swissportoffersitsairlinecustomersvariousdegreesofverticaloutsourcing.Itsofferrangesfromsimplecheck-inandgateservicesallthewaytofullhuboutsourcings.ThisflexibilityprovestobeakeysellingpropositionforSwissport,asitallows airlines to start with selected services, eventuallyexpandingthescopeovertime,ifdesiredbytheclient.Itisthiscomprehensiveserviceoffer,whichSwissport,togetherwithAerocare,cannowgraduallyrolloutalsoinAsia-Pacific.TheregionoffersamajorpotentialforSwissport,bothduetotheregionalsectorgrowthandinviewoftheadditionalpotentialfrommarketsbeingliberalisedandopenedtocompetitionbylocalgovernments.
WiththeBoardofDirectors,Ilookforwardtocontinuing to support Swissport on its exciting journey.ThankyouforyourtrustintheCompanyanditsmanagement.
DR. THOMAS STAEHELINCHAIRMAN SWISSPORT GROUP S.à r.l.
GOING FORWARD, WE CONTINUE TO SEE A VERY COMPELLING EQUITY STORY FOR SWISSPORT.”
Swissport Company Profile 201724
STRATEGIC REVIEW
CEO’S REVIEWTHE PROSPECTS FOR SWISSPORT AS THE MARKET LEADER ARE EXCELLENT
Dear Investors,Dear Readers,
2017wasasuccessfulbutalsochallengingyearforSwissport.Weachievedourrevenueandprofitabilitytargetsandorganicallygrewthroughtheconclusionofnewcontractsandmarketentries;mostrecentlyinSaudiArabiaandOman.WealsosetthefoundationforourfuturegrowthintheAsiaPacificregionbysigningamajorstrategic acquisition.
Swissport1increasedtotalrevenuetoEUR2.8billionin2017(up4.6%on2016).IntheCargosegment,revenueamountedtoEUR0.5billion(up7.8%)andfortheGroundHandlingsegment,wereportedrevenueofEUR2.3billion(up3.8%).OperatingEBITDAincreasedtoEUR220million(up6.6%).
InNovember2017Swissportannounceditsintention to acquire Aerocare, the leading Aviation ServicesandAirportInfrastructureServicesproviderinAustraliaandNewZealand.On7March2018,thedealwascompleted.Aerocare’smarketpresenceis100%complementarytoSwissport’s,adding36airportlocationstoourworldwidenetwork,whichnowincludes315stations.Beyondthat,Aerocareisanidealplatformfromwhichtoexpandourpresenceinthefast-growingAsiaPacificmarkets.
ERIC BORN
GROUP PRESIDENT & CEOSWISSPORT INTERNATIONAL AG
Onthecustomerfront,wecontinuetoinvesttimeandresourcestofurtherenhanceourservicesandmeettheevolvingrequirementsofourcustomersevenbetter.Thequalificationandmotivationofourstaffarekeytodeliverconsistentservicequalityacrosstheglobe.Wetrainourpeopletoperforminlinewithourvaluesandprinciplesandweworkoncontinuouslyimprovingemployeeretention. I would like to take this occasion to thankeveryoneatSwissportfortheircommitment.
Technologicalevolutionwillalsocontinuetoplayanimportantroleinourservicedelivery.SinceJune2017,adedicatedSwissportinnovationteamhasbeenworkingwithSiliconValley-basedstart-upaccelerator“PlugandPlay”,apartnershipthat provides us with access to the start-up eco-systemandputsusintouchwithaflowofinnovativeideas.Innovationiskeytomaintainingourindustry-leadingposition.InourownSwissport“LabStations”,wearetestingnewconceptsatanearlydesignstageandinconditionswhichcomeclosetoaliveoperation.Wearelookingatusingcomputer-visiontodetectaircraftturnaroundtimestampsfromCCTVfootage,forexample.Technologycanhelpusenhancethecustomerexperience,simplifyworkprocessesandeven tap new revenue sources.
1 AllfinancialfiguresasperSwissportGroupS.àr.l.consolidatedfinancialstatementsfor2017.
Swissport Company Profile 2017 25
Technologyalsoplaysanincreasinglyimportantroleinmoreclassicalinvestmentprojects.InJuly2017,ournewcargowarehouseatChicagoO’HareAirportwentintooperation.ASwissportteamofexpertsdesignedthe12,800square-metrestate-of-the-artfacility,whichfeatures35truckdocks.InlinewithourSwissportFormula,weputcustomerneedscentrestagewithafocusondeliveringconsistentqualityinareliable,safeandefficientway.Thenewwarehouseoperateswithtwocoldstorages,bothdesignedtomeettheIATACEIVrequirementsforpharmaceuticallogistics.Logisticsforhigh-yieldingspecialcargoisastrategicfocusareainourcargosegment.Swissportoperates133warehousesglobally.FiveoftheseareCEIVcertified,withthreemorelinedupforcertification.OurfacilityatFrankfurtAirportwasthelatestonetobecertified.
WE ALSO SET THE FOUNDATION FOR OUR FUTURE GROWTH IN THE ASIA PACIFIC REGION BY SIGNING A MAJOR STRATEGIC ACQUISITION.”
TheprospectsforSwissportasthemarketleaderareexcellent.AccordingtotheIATAforecast,theglobalaviationmarketwillbegrowingatanaverage3.7%annually.Forgroundandcargohandling, we see even greater potential, as countries are liberalising the handling services attheirairports,openingthemuptothirdpartyproviders.WeexpectSwissporttobenefitfromadditional growth opportunities through the biddingfornewhandlinglicences,bothincoreandemergingmarkets.
AlsoonbehalfofmycolleaguesoftheGroupExecutiveManagement,Iwouldliketothankyouforyourtrustinourwork.Wewillcontinuetogotheextramiletoearnyourcontinuedsupport.
ERIC BORNGROUP PRESIDENT & CEOSWISSPORT INTERNATIONAL AG
Swissport Company Profile 201726
STRATEGIC REVIEW
CFO’S REVIEWEBITDA GROWTH WAS SUPPORTED BY STRATEGIC BUSINESS INITIATIVES
2017wasagoodyearforSwissportaswecontinuedtodeliveronourstrategyandultimately,profitablegrowth.OurGroundHandlingbusinessdeliveredstableperformancethroughouttheyear,whilstwesawstronggrowthinourCargobusiness.Consequently,Swissport’stotalrevenueincreasedtoEUR2.8billionin2017,up4.6%fromEUR2.7billionin2016.OperatingEBITDA(“EBITDA”)increasedtoEUR220million,up6.6%fromEUR206milliontheprioryear.
EBITDAgrowthwassupportedbystrategicbusinessinitiatives.Amongtheseinitiatives weremarginandproductivitymanagement, wherewesawstrongimprovementsincommercialperformance.Wealsonotedproductivityimprovementsacrossthenetwork,particularly in Geneva and Zurich where we were able to leverage our long standing operating experience to enhance operational output.
DR. CHRISTIAN GÖSEKE
CHIEF FINANCIAL OFFICERSWISSPORT INTERNATIONAL AG
Withanevenstricterfocusoncommercialterms,wesuccessfullyrenewedanumberoflargecontractsunderimprovedcontractualterms,amongmanyotherlocationsinGeneva.Ourdecisiontoexitselectedmarkets,wherewewerenot able to achieve positive results even in the mediumterm,alsocontributedtowardsmarginimprovements.TheterminationoflossmakingcontractsandtheclosingdownofstationsintheUSandtheUKin2016continuetohaveapositiveimpacton2017’sperformance.
SaudiArabiaandOmancontinuetorampupasweseektoexploittheopportunityidentifiedinthesemarkets.Equally,theupwardtrendingaircargovolumeshavesupportedthestrongperformanceinthebusinessthisyear,withnotablecontributionstoprofitablegrowthfromtheUS,theUKandSwitzerland.ThecontributionofAerocare–averywell-runbusinessthathasbeenequallycommittedtodisciplinedcapitalmanagement–servesasagoodexampleofourongoingfocusonensuringthatanyacquisitionisvalue-accretive.
KEY FINANCIAL PERFORMANCE INDICATORS OVERVIEW (IN MEUR)1
20172016
ADJUSTED
Revenue 2,805.8 2,681.7Operating EBITDA 220.1 206.4Operating EBITDA margin 7.8% 7.7%
1 AsperSwissportGroupS.àr.l.consolidatedfinancialstatementsfor2017.
Swissport Company Profile 2017 27
WITH THE EXPANSION OF OUR GLOBAL FOOTPRINT, WE ARE CONFIDENT TO CONTINUE EXTENDING OUR GROWTH TRAJECTORY GOING INTO 2018.”
ManagingandseekingopportunitiestorationaliseourcostbaseareakeycomponenttothewaySwissportextractsvalue.Consequently,wehavesoughtwaysofstreamliningourinternalprocessestodriveincreasedefficienciesacrossour operations and services. We have developed a centrallymonitoredcostingmodel,harmonisedoursystemsandestablishedcentralprocurementandITteams.
InAugust2017,SwissportFinancingS.àr.l.,supportedbyHNAGroup,implementedremediesfortechnicaldefaults,whichhadoccurredfollowingatechnicalbreachunderSwissport’screditagreement,duetoasharepledgebyitsparent.Thesolutioncomprisedanewcapitalstructurestrategy,includingEUR200million(CHF222million)ofgrossdebtrepayment.Thisenhanced our capital structure, provides a distinct creditandcovenantperimeterandpreservestheintegrityofthecollateralpackageforthebenefitofinvestors.
Wecontinuedtodeliverpositivecashflowsthroughtheyear.Wecarefullymanageourcapitalstructureandcontinuetohavetheabilitytobeflexibleinthetimingoftheinvestmentsandplannedcapitalexpendituretofurtherbolsterourcashposition,shoulditbecomenecessary.
InMarch2018,wesuccessfullysecuredEUR325millionfinancingfromBarclaysthatenabledustoclose the Aerocare acquisition. With the expansion ofourglobalfootprint,weareconfidenttocontinueextendingourgrowthtrajectorygoinginto2018.
DR. CHRISTIAN GÖSEKECHIEF FINANCIAL OFFICERSWISSPORT INTERNATIONAL AG
Swissport Company Profile 201728
STRATEGIC REVIEW
CORPORATE RESPONSIBILITYCONTRIBUTING OUR SHARE AS A RESPONSIBLE BUSINESS
STAKEHOLDERSSwissportengageswitharangeofstakeholderson a regular basis. It is our goal to be a reliable, professionalandrecognisedpartnerinthecreationofvaluesandresultsforallourstakeholders–internallyandexternally.Ourkeystakeholdersareidentifiedbyanalysingthosegroupsthatareaffectedbyouroperation,orcouldinfluenceit.
■ Customerairlines ■ Airports ■ Airportauthorities(privateandgovernmental) ■ IATA and other international associations in theaviationindustry
■ Shareholders ■ Management ■ Staff ■ Trade Unions and work councils ■ Communities ■ Suppliers ■ Passengers
HOW WE OPERATE ACCOUNTABILITYTheoverallaccountabilityforSwissport’sapproachtosustainabilitylieswiththeGroupPresident&CEO.AccountabilitycascadesdownwardsfromtheBoardofDirectorstothebusinessmanagers.Ultimately,itistheresponsibilityofeveryemployeetoactinaccordancewithSwissport’svaluesandcodeofconduct.
INTRODUCTION
AT SWISSPORT, ALL BUSINESS ACTIVITIES ARE GUIDED BY OUR COMMITMENT TO BUSINESS INTEGRITY AND RESPONSIBLE CONDUCT REGARDING FINANCIAL, SOCIAL AND ECOLOGICAL ASPECTS. WE BELIEVE THAT RESPONSIBLE CONDUCT AND SUSTAINABLE MANAGEMENT ARE VITAL TO SECURING THE LONG-TERM FUTURE OF THE COMPANY AND ARE IN THE INTEREST OF SWISSPORT AND ITS STAKEHOLDERS.
HEALTH AND SAFETYSwissportwillnotcompromisewhenitcomestohealth&safetyandwearedeterminedtomeetourultimategoalofzeroaccidents,zerowork-relatedinjuriesandillnesses.Webelieveincidentsarepreventableandnothingismoreimportantthankeepingourpeople,ourcustomersandthosearoundussafe.Ouraimistobetherecognisedgloballeaderinhealth&safetyinoursector.
Allemployeesareexpectedtounderstandtheirresponsibilities,betrainedforthetask,tofollowthemethodsofworkingbycomplyingtoSwissportOperationalStandards(SOP),directlyintervene–whereappropriate–topreventanaccident,touseequipmentthatisfitforuseandensuretheuseofproperPersonalProtectiveEquipment.Employeesareencouragedtostopataskandtoreporttotheirsuperior,iftheyfeelunsafeornottrainedforit.
Swissportoperatesa“JustCulture”philosophythatisfairtoallemployeesandencouragesopenreportingofallunsafeacts,unsafeconditionsandincidents.Everyoneissupportedandencouragedinthereportingofincidents.SafebehavioursandcommitmenttoaccountabilityareencouragedandrecognisedinourSafetyManagementSystem.
OPERATIONAL RISK MANAGEMENTSwissporthassetupitsoperationalsafetyriskmanagementinlinewiththeInternationalCivilAviationOrganisation(ICAO)recommendationsfortheestablishmentofasafetymanagementsystem.AlloccurrencesrecordedintheSafetyManagementToolwhichprovidetheincidentandaccidenthistory.Theseincidentsoreventsare
Swissport Company Profile 2017 29
analysedonacase-by-casebasis.Thisincludesthereviewoftheglobalandlocalriskassessments.Togetherwithstructuredinformationonoperationalphasesandcontributingfactors,thedatabaseprovidesallthenecessaryinformationabout the Swissport Group risk register, which is automatedandcontinuouslyupdated.
TheoperationalproceduresarereviewedbythemanagementoftheSwissportGroupperiodicallyandareimprovedcontinuously.
HUMAN RIGHTS AND LABOUR PRINCIPLESSwissportactivelysupportsandrespectstheprotectionofinternationallyproclaimedhumanrightsthroughvariouspoliciesandcertificationrequirements.Thisisasubjectofprioritythroughout the organisation and has led to the absenceofanysignificantincidentsorviolationsofnon-compliancewiththeinternationallyproclaimedhumanrightsincludingfreedomofassociation or collective bargaining, child labour, compulsorylabourandindigenousrightsbySwissportoranysignificantsuppliersduringthereportingperiod.Swissporthasnotidentifiedanyoperationorsupplierthatisatsignificantriskorexposureinthisregard.Ifsuchacaseofnon-complianceshouldoccur,Swissportispreparedtotakeallmeasuresnecessary,asoutlinedintheCodeofConduct,todealwiththeviolation.
AllemployeesareexpectedtoabidebytheSwissportCodeofConduct.TheyarepromptedtoreportanyevidenceofpossibleviolationoftheSwissportCodeofConducttotheirsuperioror,ifappropriate,totheChiefLegalOfficerortotheChairmanoftheAuditCommittee.Asalast
SWISSPORT OPERATES A “JUST CULTURE” PHILOSOPHY THAT IS FAIR TO ALL EMPLOYEES AND ENCOURAGES OPEN REPORTING OF ALL UNSAFE ACTS, UNSAFE CONDITIONS AND INCIDENTS.”
CODE OF CONDUCT TRAININGAweb-basedtrainingonthethreemodules“CodeofConduct”,“CompetitionLaw”and“Anti-Corruption Guidelines” has been introduced as a Group-wide standardised training. It has been developedasanadditionalsteptoreinforceourCode and Ethical Behaviour guidelines across the organisation. This training is intended to help our employeestobetterunderstandourcorevaluesandtomaintainourreputationforhonesty,integrityandrespectforlaw,bypromotingacorporate culture and behaviour in order to achieve the desired success. The training consists ofthreemodules,withanapproximatetimerequirementsof1.5hours.
MoreinformationonourCodeofConductisincludedinourSustainabilityReport2017, whichcanbefoundat:www.swissport.com/sustainabilityreport2017.
resort,iftheemployeefearsretaliation,heorshehasthepossibilityofcontactingtheSwissportWhistle-blower hotline.
CODE OF CONDUCTTheCodeofConductanditssupportingpolicies(Anti-CorruptionguidelinesandCompetitionLawguidelines)applyandformtheguidingprinciplesofourbehaviour.TheCodeofConductstates:
■ Behaviourwithintegrityandincompliancewith the law.
■ Therecognitionofinternationallyproclaimedhumanrights.
■ Respectforotherculturesandopinions.
■ Responsibilitytowardssociety.
■ Carefortheenvironment.
■ LoyaltytowardstheSwissportGroup.
■ Fair,courteousandrespectfulbehaviourtowards colleagues, superiors, subordinates, customers,shareholders,authorities,businesspartners and the public.
■ Professionalbehaviourandobservanceoftherulesofgoodbusinesspracticeandofinternaland external rules and regulations.
■ Protectionfromdiscrimination.
■ Promoteanopen,transparentandconstructivebusinessstyle.
Swissport Company Profile 201730
STRATEGIC REVIEW
CORPORATE RESPONSIBILITY CONTINUED
PEOPLESwissport is a service provider in the aviation industrywhichisadistinctpeoplebusiness.Therefore,Swissportfeelshighlyresponsibletowardsallitsemployeeswhichisreflectedinourvalues,commitments,behaviours,proceduresandstandards.Operatingglobally,westronglyfosterthedialoguebetweenemployeesandculturestosupportanysocialprogress.Ourorganisationiscommittedtorespectandsupporthumanrights,toavoidresponsibilityforandcomplicityinhumanrightsabusesandtofosterapositiveworkingenvironmentandassuchitusesthefollowingasabaseforpolicydevelopment:
■ SwissportCodeofConduct
■ ISO9001
■ UNGlobalCompactTenPrinciples
Swissportisfullycommittedtoensuringfairandequalemploymentopportunities.Webelieveindiversityanddonotacceptanydiscrimination.
TheCompanyisdedicatedtothesupportofallemployeesinreachingtheirfullpotentialthroughawiderangeoftraininganddevelopmentopportunities.Development-orientedPerformanceManagementandestablishedTalentManagementprocessesprovideadditionalopportunitiesforenhancingemployees’capabilitiesandpersonalgrowth.
TRAINING AND DEVELOPMENTSwissportiscommittedtothedevelopmentofallemployees,endorsingthateachindividualhastherelevantknowledge,skillandproficiencytodeliverthehigheststandardsofworkconsistentlyandsafelyintheworkplace.Swissportrecognisesthattraininganddevelopmentisfundamentaltomaintainingandcontinuallyimprovingoperationalperformance,andanintegralpartoftheorganisationintheachievementofourstrategyandgoals.Therefore,Swissportisstrivingforexcellence at all levels in the organisation. In this regard, Swissport provides level-appropriate traininganddevelopmentopportunitiesfrombasetotop–foralloperationsstaff,tosupervisoryandfirst-linemanagement,aswellasmiddleandseniormanagers.
Swissporthastwodepartmentsthatdesignanddelivertraininganddevelopmentopportunities:
■ GlobalTrainingthatisresponsibleforthedevelopmentandimplementationofcorporatetechnical training standards.
■ GlobalLearningandDevelopmentthatisresponsibleforprocessesandstandardsinperformanceandtalentmanagementandinleadershipdevelopment.
MoreinformationontraininganddevelopmentisincludedinourSustainabilityReport2017, whichcanbefoundat:www.swissport.com/sustainabilityreport2017.
Swissport Company Profile 2017 31
HEALTH & WELL-BEINGSwissporthasfitnessandhealthservicesatmanylocationsdependingontheirsizeofoperation.
Healthandsafetyisnotonlyamatterofprotectiveequipment,butalsoofdifferentprogrammesthatsupportahealthylifestyle.AtvariouslocationsoftheSwissportGroupoffersservicesandprogrammessuchas:education,counselling,andotherlocalhumanresourcesprogrammesforhealthandwell-being.Thesefitnessandhealthservicesareavailableforemployees.
LABOUR RELATIONSSwissport operations and business success are based on people and their services. Operating in manycountriesacrosstheglobe,Swissporthasalargeandgrowingworkforcesubjecttodifferentlegislationsandlabourenvironments.
ItisSwissport’saimtoestablishandmaintainanopen and stable working relationship with employeesandtheirrepresentatives,suchasworkcouncils and trade unions or other.
Therefore,local/regionalLabourRelationsandmanagementareresponsibleforregularexchangeofinformationwithemployeesandemployees’representatives.
AT VARIOUS LOCATIONS SWISSPORT GROUP OFFERS SERVICES AND PROGRAMMES SUCH AS: EDUCATION, COUNSELLING, AND OTHER LOCAL HUMAN RESOURCES PROGRAMMES FOR HEALTH AND WELL-BEING.”
ENVIRONMENTSwissporthasissuedanEnvironmentalGuidelinethatsetsoutthegoalsofminimisingenvironmentalimpact:endeavourforcontinuousimprovementtoourservicesandformoreeffectiveproductionprocesseswithcustomeradaptedsolutions;tomakeefficientuseofrawmaterials,materialsandenergy;toincreaseawarenessofenvironmentalissuesamongallemployeestoalevelwhereenvironmentalconsiderationsbecomeone’sownresponsibilities;andtofosterlow-emissionservicevehiclesandGroundServiceEquipment.
Employeebehaviourisguidedthroughawarenesstrainingandregularbriefings.Typically,theoperationalareasinterfacedirectlywiththeairportinfrastructures.Swissporthastomakeuseofthelocations,assignedinfrastructures,and,ifnecessary,toadaptourprocessestotheonesprescribedbythelocalauthorities.
MoreinformationonourEnvironmentalactivitiesisincludedinourSustainabilityReport2017,whichcanbefoundat:www.swissport.com/sustainabilityreport2017.
Swissport has a whistle-blower hotline in place to reportinaprotectedmannerallegedviolationsoftheCodeofConduct.
GOVERNANCE
Swissport Company Profile 201732
GROUP EXECUTIVE MANAGEMENT1
TOP ROW, LEFT TO RIGHT: JOHANNES C. SPINDLER, CHRISTIAN GÖSEKE, DAVID LIU, ANDREAS HUGENERBOTTOM ROW, LEFT TO RIGHT: NILS PRIES KNUDSEN, ERIC BORN, JOE PHELAN, LUZIUS WIRTH
1 Swissport International AG
Swissport Company Profile 2017 33
PENG LIUEXECUTIVE VICE PRESIDENT ASIA DEVELOPMENT
Peng(David)Liu,Chinese,joinedSwissportfromHNAGroupon15August,2016astheCompany’sExecutiveVicePresidentAsiaDevelopment. HeisalsoamemberoftheGroupExecutiveManagementofSwissportInternationalAG.AftergraduatingfromUniversity,DavidstartedhiscareerintheairlinebusinessinChina.BeforejoiningSwissport,heservedasaseniorexecutiveofHNA,includingCorporateExecutiveMemberofHNAAviationGroupCo.Ltd.,GeneralManageroftheStrategy&PlanningDepartmentofHNAAviationGroupCo.Ltd.andtheDeputyGeneralManageroftheCabinandGroundServicesDepartmentofHainanAirlines.
NILS PRIES KNUDSENCHIEF COMMERCIAL OFFICER
NilsPriesKnudsen,Danish,hasbeenamemberoftheGroupExecutiveManagementofSwissportInternationalAGsince1March,2015,firstastheExecutiveVicePresidentforGlobalCargoServicesandsince1October2016astheCompany’sChiefCommercialOfficer.Heisresponsibleforover850clientcontracts.NilsjoinedSwissportin2009asSeniorVicePresidentCargoEurope.InJuly2013,hetookontheroleofHeadofGlobalCargoServices.PriortojoiningSwissport,hewasVicePresidentforGlobalSalesatSASCargoGroupA/SinCopenhagen and held various senior positions withA.P.Moller-Maersk,DHLandSAS.
DR. JOHANNES C. SPINDLERCHIEF LEGAL OFFICER & COMPANY SECRETARY
Dr.JohannesC.Spindler,German,hasbeenChiefLegalOfficer&CompanySecretaryofSwissportInternationalAGsince1March,2010.InthisfunctionheisalsoamemberoftheGroupExecutiveManagement.JohannesheadstheLegal&Compliance,RiskManagementandInsurancedepartments.BeforeJohannesmovedtoSwitzerlandtoworkasaSeniorLegalCounselforSwissairandlaterforSwiss International Air Lines Ltd., he practiced as anAttorneyatLawwithlawfirmsinFrankfurta.M.,Germanysince1999.BeforejoiningSwissportheheldthepositionasGroupGeneralCounselofthestocklistedSwisscompanyKuoniTravelHoldingLtd.
DR. CHRISTIAN GÖSEKECHIEF FINANCIAL OFFICER
Dr.ChristianGӧseke,German,hasbeenamemberoftheGroupExecutiveManagementofSwissportInternationalAGanditsChiefFinancialOfficersince1May2016.Christianisresponsibleforallfinancialmatters,includingGroupReporting,Investors Relations as well as the Enterprise Risk ManagementandInternalControls.Christian started his career in consulting with McKinsey&Company.Hehassome10yearsofexperienceinthelogisticsandairlineservicesindustry,havingworkedforWincantonplc,Rhenus and gategroup.
ANDREAS HUGENERCHIEF HR OFFICER
AndreasHugener,Swiss,wasappointedChiefHumanResourcesOfficerandmemberoftheGroupExecutiveManagementofSwissportInternationalAGon1February2017.Andreasisresponsiblefortheglobalhumanresourcesstrategyinsupportoftheoverallbusinessplanandthestrategicdirectionoftheorganization.HisresponsibilitiesincludeHRBusinessPartners,LabourRelations,GlobalLearning&Development,WorkforceAnalyticsandCompensation&Benefits.BeforejoiningSwissport,AndreaswastheGlobalHeadofHumanResourcesatSulzerPumpsLtd.HehasastrongindustrialandtechnologybackgroundandpreviouslyheldvariousseniorpositionsinHumanResourcesManagement.
JOSEPH PHELANCHIEF OPERATIONS OFFICER
Joseph(Joe)Phelan,American,wasappointedChiefOperationsOfficeron1June2016andhasbeenaMemberoftheGroupExecutiveManagementofSwissportInternationalAGsince1Jan2013.Inthisfunction,heisresponsiblefortheCompany’sglobaloperations,bothintheGroundHandlingandCargoHandlingsegments,andallotherproductlinesegmentsatcurrently315airportsworldwide.From2013to2016JoewasCEOofSwissportNorthAmericaandAsia.BeforejoiningSwissport,heservedasCEOandPresidentforSunbeltRentalsintheUnitedStates,andpreviouslyasChairmanandCEOforDHLGlobalMailinGermany.HehadstartedhiscareerwithAmericanAirlines.
LUZIUS WIRTHEXECUTIVE VICE PRESIDENT UK/IRELAND
LuziusWirth,Swiss,hasbeenamemberoftheGroupExecutiveManagementofSwissportInternationalAGsince1September,2015,firstasExecutiveVicePresidentGroupServicesandsince1June,2017asExecutiveVicePresidentUK/Ireland.Inthisfunctionhehasoverallresponsibilityforthefurtherdevelopmentofthiscoreregionalmarket.BeforejoiningSwissport,LuziuswasanEngagementManageratMcKinsey&Company,PricewaterhouseCoopersandIBM.HejoinedSwissportin2012andhassincetakenupvariousprominentleadershiproleswithintheGroup,amongthemVicePresidentSwissportFormulaandlaterVicePresidentCorporateOperations&Quality.
ERIC BORNPRESIDENT & CHIEF EXECUTIVE OFFICER
EricBorn,Swiss,hasbeenPresident&CEOoftheGroupExecutiveManagementofSwissportInternationalAGsince1August2015.HeisresponsibleformanagingtheglobalmarketleaderinGroundandCargoHandlingwithaglobalworkforceof68,000personnelandrepresentationsat315airportsin50countriesacrossfivecontinents.From2010to2015,EricwasCEOofWincantonplc,aleadingcontractlogisticscompanyheadquarteredintheUKandlistedontheLondonStockExchangeandpreviouslyheldvariouspositionsatgategroup,MigrosandAccenture.
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