DRIVING NEW FRONTIERS FOR SUSTAINABLE …

1 INTEGRATEDREPORT DRIVING NEW FRONTIERSFOR SUSTAINABLE GROWTHNAVIGATION ICONSOUR BUSINESSOUR PEOPLE AND SOCIETYM anufactured capitalHuman capitalIntellectual capitalSocial and relationship capitalFinancial capitalOur outlook Short-, Medium-, Long-term (SML)Annual Financial StatementsOUR ENVIRONMENTOTHER ICONSOur stakeholdersOur customersOur risksNatural capital Our awards and accoladesOur governanceRefer to the page as indicatedRead more on the company website at ABOUT THIS REPORT4 Message from the Chairman 7 Our integrated report7 Board approval8 Highlights10 Recognition and awards12 company OVERVIEW14 Our organisation14 Our mandate15 Value proposition15 Shareholding 16 Legal structure18 Our leadership20 STRATEGY22 Message from the CEO26 Our strategy28 Our

2 Business model32 Performance against predetermined objectives40 Economic context and impact41 Our stakeholders46 Risk management54 Material issues58 Looking ahead62 CAPITALS AND PERFORMANCE64 Operational overview66 Manufactured capital 94 Financial capital106 Intellectual capital116 Human capital124 Social and relationship capital129 Natural capital134 GOVERNANCE FRAMEWORK136 Governance structure138 Board of directors146 Executive team148 Ethics150 Delegated level of authority151 Anti-corruption programme152 Compliance framework 153 Internal audit155 Remuneration report160 SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS162 Report of the Board Audit and Risk Committee163 Directors responsibilities and approval164 Group Secretary s certification165 Directors report167 Summary of consolidated statement of financial position168 Summary of consolidated statement of comprehensive income169 Summary of consolidated statement of cash flows170 Summary of consolidated statement of changes in equity171 Selected notes to the summary

3 Of consolidated financial statements174 STATISTICAL REVIEW177 ABBREVIATIONS AND ACRONYMSIBC GENERAL TAMBO INTERNATIONAL AIRPORTCAPE TOWNINTERNATIONALAIRPORTGEORGEAIRPORTUPI NGTONINTERNATIONALAIRPORTKING SHAKA INTERNATIONAL AIRPORTBRAM FISCHER INTERNATIONAL AIRPORTKIMBERLEYAIRPORTEAST LONDON AIRPORTGUARULHOSINTERNATIONALAIRPORTSOUT H AFRICAINTERNATIONAL AIRPORTCONCESSIONED AIRPORTNATIONAL AIRPORTS U PAULOGHANAPORT ELIZABETH INTERNATIONAL AIRPORTKOTOKA INTERNATIONAL AIRPORTINDIACHHATRAPATI SHIVAJIINTERNATIONAL airport AIRPORTS company south africa EMBRACING FORWARD THINKINGMUMBAIINTEGRATEDREPORT 20151 AIRPORTS company south AFRICA2 ABOUT THIS REPORTWITH OUR SUSTAINABILITY VALUE-CREATION OUTLOOK, WE WILL CONTINUE TO FOCUS AND CHANNEL OUR RESOURCES TO IDENTIFY PROGRAMMES AND INITIATIVES THAT WILL BRING ABOUT HIGH IMPACT TRANSFORMATION AND 20153 Cape Town International airport AIRPORTS company south AFRICA4 ABOUT THE REPORTDEAR STAKEHOLDERSA irports are gateways that are inherently integral economic catalysts for cities and countries.

4 Together with all their industry players, airports have the capacity to establish symbiotic relationships to harness efforts and drive activities that will generate direct, indirect and induced benefits and outcomes. When industry collaboration is optimised, the outcomes can in turn have far-reaching economic, social and environmental multiplier effects. The degree to which Airports company south africa is able to deliver SUSTAINABLE value for the benefit of all therefore depends on our industry stakeholders playing their roles robustly and commitment of Airports company south africa to deliver SUSTAINABLE value is underscored by five critical developments that commenced in the year under review.

5 The 2016 2018 corporate plan was approved The board committees were realigned The new management operating structure was operationalised The governance framework and operating model project were initiated The implementation of the board-approved transformation strategy and policy has the aim of ensuring that Airports company south africa fulfils its mandate of delivering SUSTAINABLE value for all, the company continues to look into the governance, operating processes and structures that will empower it to operate at an optimum level of efficiency and continue to benchmark itself favourably against its peers in the international airport FROM THE CHAIRMANT ogether with all their industry players, airports have the capacity to establish symbiotic relationships to harness efforts and drive activities that will generate direct.

6 Indirect and induced benefits and Macozoma Chairman31 July 2015 MET 89% OF OUR PREDETERMINED OBJECTIVESINTEGRATEDREPORT 20155 RECOGNISING OUR PEOPLEH aving served on the Airports company south africa board as a non-executive director since March 2012, I was humbled and honoured to have been appointed as non-executive chairman from March 2015. On behalf of the Airports company south africa board, its staff and all its stakeholders, I would like to extend our appreciation to Busi Mabuza, whose term expired in February 2015, for her exceptional contribution in leading the Airports company south africa board as chairman from 1 March 2012 until 28 February 2015.

7 We wish Busi well in her future 2015, two other non-executive board members, Priscillah Mabelane who resigned in December 2014, and Tryphosa Ramano whose term expired in February 2015, also left the company s board, and we thank them for their skill and dedication. In March 2015, three new non-executive board members were appointed to ensure that the board has its full complement. Accordingly we welcome Matlodi Mabela, Kate Matlou and Siyakhula Simelane, all of whom are well placed to make a valuable contribution to the company s advancements.

8 Their appointments are due to be confirmed at the annual general meeting scheduled to take place during August extend our gratitude to our Honourable Minister Elizabeth Dipuo Peters and the Deputy Minister Sindisiwe Chikunga for their dedication and is also fitting to thank all the board members for their collective experience, wise counsel, valuable insights and guidance over the last year. On behalf of the board, we express our gratitude to our Chief Executive Officer Bongani Maseko and his executive team for their leadership, dedication and resilience.

9 I also thank the employees for their unwavering commitment and contribution in serving our customers with OUR STAKEHOLDERS Effective stakeholder engagement is central to our effectiveness. In our previous financial year we commissioned research to help us understand our relationship and reputation with our key stakeholders. The exercise resulted in the identification of 164 activities to address the areas requiring attention. During the year under review we initiated the essential actions and proceeded to engage our stakeholder on the issues, concerns and ideas that were raised by them.

10 Of the 164 activities, 51% were completed and the remaining 49% are in the board delegates some of its responsibilities for engagement with our stakeholders to the executive management team, board members interact with shareholders at our annual general meetings and at presentations made by the executive management team when we release our annual results. During 2015 we also accompanied the CEO to various industry forums and community TRANSFORMATION AND SUSTAINABILITY We have maintained our Broad-Based Black Economic Empowerment (B-BBEE) Level 2 status.