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AIRPORTS COMPANY SOUTH AFRICA SOC LIMITED - Airports Company South Africa Reports Results For 2017 Financial Year

Release Date: 18/09/2017 12:15
Code(s): AIR04 AIR05 AIR01 AIR02 AIRL01     PDF:  
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Airports Company South Africa Reports Results For 2017 Financial Year

Airports Company South Africa Ltd
(Incorporated in the Republic of South Africa)
Reg No 1993/004149/30
VAT No 4930138393
JSE Code: BIACSA
(“ACSA”)


MEDIA RELEASE


AIRPORTS COMPANY SOUTH AFRICA REPORTS RESULTS FOR 2017 FINANCIAL YEAR


PERFORMANCE HIGHLIGHTS
REVENUE                  PROFIT INCREASED       INTEREST-BEARING          76% OF KEY
UP BY 3.4% TO            BY 10.8% TO            BORROWINGS REDUCED        PERFORMANCE
R8.6 BILLION             R2 BILLION             BY 5.0% TO R9.3 BILLION   INDICATORS MET
(2016: R8.3 BILLION)     (2016: R1.8 BILLION)   (2016: R9.8 BILLION)


JOHANNESBURG 18 September 2017 - Airports Company South Africa reported revenue growth
of 3.4% to R8.6 billion in the year ended 31 March 2017, with profit up 10.8% to R2
billion.

Return on equity was 11.3% compared to 11.5% in the previous period. Capital
expenditure reduced by 31.3% to R893 million.

Bongani Maseko, Chief Executive Officer of Airports Company South Africa, said the
Company continued to be resilient, despite sluggish economic growth.

The Company reported a total of 20.0 million (2016: 19.4 million) departing passengers
from the nine airports it owns and operates.

While domestic passenger growth was subdued at 2.2%, the Company reported strong
growth of 6.1% in international departing passengers.

For the first time, Cape Town International Airport reported a total of more than 10
million arriving and departing passengers, with King Shaka International Airport
reporting a total of more than five million passengers for the first time.

Aircraft landing volumes were flat for domestic flights and up by 2.5% for
international flights, indicating higher passenger utilisation of scheduled flights.

Maseko noted that Airports Company South Africa has managed to significantly reduce
its debt levels over the past five years. Debt, primarily in the form of bond issues,
stood at R9 billion at the end of the period, significantly down from R17 billion in
2012.

As a result, the Company's gearing ratio has reduced from 59% in 2012 to 25% in the
2017 financial year.

Aeronautical revenue contributed 63% to total revenue but the Company remains
committed to continue to grow the non-aeronautical revenue contribution. Non-
aeronautical revenue is derived from sources such as retail space, advertising, office
rental, parking and car hire.

"The overall financial position of the Company therefore remains healthy despite
regulatory uncertainty and difficult economic conditions," says Maseko.

"Operationally, we are adapting well to a new tariff regime from the regulator which
required a 35.5% reduction for the 2018 financial year with increases in the following
two years of 5.8% and 7.4%," he says.

Airports Company South Africa met 76% of its performance objectives in the period
under review, which for the first time included additional measures such as reducing
environmental impact, improving connectivity to the regions served, providing
equitable access to safe airports, and leadership culture.

"We now have 17 measures of performance that underpin our three-pillar strategy to run
airports, develop airports and to grow our footprint. This ensures that the drivers of
performance are moving us in the desired direction and that all employees understand
how they make a difference," says Maseko.

The three-pillar strategy captures objectives of running airports efficiently and
introducing innovations, improving capacity and infrastructure, and producing more
impactful outcomes for the country.

The Company has refined and enhanced its transformation strategy to focus on seven
sectors which account for the bulk of its procurement. These sectors are information
technology, construction, property, retail, advertising, car rental and baggage
handling.

"We appreciate that business and transformation dynamics are different across these
sectors and we need different levers to advance change in each. Some have made more
progress with transformation, while in others we have identified the need to support
more actively the development of black-owned and managed enterprises," says Maseko.

"However, there remain several critical issues to resolve with the regulator, and we
plan to continue advocating for a tariff regime without large changes from year to
year. In addition, we need to resolve matters relating to capital expenditure which is
essential to maintaining efficient airports and developing infrastructure for the long
term."

ENDS

Distributed on behalf of Airports Company South Africa by FTI Consulting

Contact:
E: julie.cunningham@fticonsulting.com       E: trevor.jones@fticonsulting.com
T: +27 11 214 2410                          T: +27 11 214 2414
M: +27 83 295 0526                          M: +27 71 682 6007

Tel +27 11 723 1400 Fax +27 11 453 9354
The Maples, Riverwoods, 24 Johnson Road

Bedfordview, Gauteng, South Africa, 2008

PO Box 75480, Gardenview
Gauteng, South Africa, 2047

www.airports.co.za

Airports Company South Africa Ltd
Reg No 1993/004149/30
VAT No 4930138393

18 September 2017
Debt Sponsor
The Standard Bank of South Africa Limited

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