ImpactStrategic objectivesKPIMetricFY2019/20

Create value for our shareholdersReturn on equity (ROE)%
Return on capital employed (ROCE)%
Diversify business portfolioNon-aeronautical revenueR millionR3 253 millionR3 130 millionR3 039 millionR2 935 million
Increase our reputationReputation IndexWeighted average≥ 6564.167.263.1
ASQ IndexRating from 1 (poor) to 5 (excellent)44.083.974.08
Ensure successful transformation
of our operations
B-BBEE LevelB-BBEE as per the codeLevel 2Level 2Level 2Level 2
Percent of black business share of commercial revenue
Number of job opportunities createdNumber of job opportunities
25 668*23 75030 68424 741
Reduce our
environmental impact
ACI carbon accreditation levelACI level as per mapping certification criteriaACI level as Attain ACI Level 2 reduction certification for at least three airportsAttained ACI Level 2 reduction certification for ORTIA, CTIA, KSIA
(new), PLZ (new)
Attained ACI Level 2 reduction certification for ORTIA and CTIAAttained ACI Level 1 – mapping certification for KSIA and PLZ

Our five strategic objectives and nine KPIs are all aligned to our three strategic pillars.

*The 23 750 job opportunities created in FY2019/20 were lower than the approved target of 25 668. However, owing to an administrative error, the target reflected in the approved Corporate Plan was incorrect and should have been 23 344. The target of 23 344 job opportunities created was the result of a downward revision of the FY2019/20 capital expenditure budget, from R1.6 billion to R1.0 billion. While the capital expenditure change was updated in the approved Corporate Plan, regrettably the corresponding number of job opportunities created target was not updated. As a result, the job opportunities created target was technically exceeded by 1 390 job opportunities.

KPIKPI descriptionCalculation/descriptionAssurance
Return on equity (ROE)The amount of net income returned as a percentage of shareholders’ equity. ROE measures a Group’s profitability by revealing how much profitit generates with the money shareholders have invested.Profit after tax divided shareholder’s funds
Return on capital
employed (ROCE)
Profit before distributions to equity and debt funders as a percentage of shareholders equity and debt. Return on capital employed measures a corporation’s profitability on all funds invested and not only those of the shareholders and is an indicator of enterprise value generation.(Profit after tax + net interest) / (Average shareholders’ funds + average long-term debt + average bank overdraft – average cash)
Profit before distributions to equity and debt funders as a percentage of shareholders equity and debt. Return on capital employed measures a corporation’s profitability on all funds invested and not only those of the shareholders and is an indicator of enterprise value generation.The sum of commercial, property and business development revenue
Reputation IndexThe Reputation Index Measure comprises of the perceptions and the degree to which stakeholders admire, trust, respect and have an overall good feeling
towards the Company.
Reputation Institute’s RepTrak® research methodology is the global standard for measuring corporate reputation. The reputation survey data is captured in the RepTrak® Pulse, and an outcome score from 0–100, with 100 being the best, is computed. Every second year of the measure will be based on a peer review of the Company
ASQ IndexThis indicator illustrates the passenger view and assessment of our airports’ delivery of airport customer-focused services. This indicator is derived from the independent and approved ASQ programme managed by ACI.Passengers complete a survey assessment, through a structured passenger ASQ survey programme. The ASQ survey cover 34 services areas clustered across the following categories access, airline service, security, finding your way, airport facilities, airport environment and airport arrivals services. Survey assessment data collection and results are managed by an external company ACI. Scoring scale: 1–5 with 1 being poor and 5 being excellent. Group ASQ score will be calculated as an average of the nine airports ASQ scores
B-BBEE LevelThe Company’s B-BBEE recognition level is based on a public-sector scorecard framework which reflects the Company’s contribution to broad-based black economic empowerment.B-BBEE Rating (Use Department of Trade and Industry’s qualification scoring and independently approved score)
Percent of black business share of
commercial revenue generated
The Company’s B-BBEE recognition level is based on a public-sector scorecard framework which reflects the Company’s contribution to broad-based black economic empowerment.(Commercial revenue to black business X 100) / (Total commercial revenue generated) Where ‘black business’ is defined as one where the company has >51% black management control and ownership and commercial revenue is defined as revenue generated from revenue-sharing models, i.e. retail, car hire/rental and advertising
Number of job opportunities
This measure informs the stakeholders on the number of job opportunities created by the Company.Employment Contribution Model
ACI carbon accreditation
The assessment and recognition of our airports’ efforts to manage and reduce our CO₂ emissions.ACI’s, Airport Carbon Accreditation – recognises and accredits the efforts of airports to manage and reduce their carbon emissions. There are four levels of certification: Mapping, Reduction, Optimisation and Neutrality. Airport Carbon Accreditation is based on existing international standards in the reporting and accounting of greenhouse gas emissions. Attain an independent ACI certification.


Siphamandla Mthethwa

Airports Company South Africa achieved a profit for the year of R1.2 billion, which is a significant improvement on our R0.2 billion profit in the previous financial year. This is to a large extent at odds with the underlying operational performance of the Company. Revenue of R7.12 billion was down compared to R7.13 billion in the previous year, resulting in a drop in Earnings Before Interest Tax Depreciation and Amortisation to R2.6 billion compared to R2.9 billion in 2018/19.


Performance at a glance

R7.12 billion

R7.13 billion

R1.2 billion

R0.2 billion

R1.2 billion

R1 billion

R32 billion

R31 billion

R2.6 billion

R2.9 billion



R1.3 billion

R1.1 billion



The significant increase in profit is attributable to the impact of accounting adjustments and events such as the R721 million fair-value adjustment to investment properties, R157 million in rates refunds and non-recognition of the R328 million share of losses from the GRU investment, because the losses were in excess of the investment’s carrying value. The impact of COVID-19 and subsequent travel restrictions resulted in the Company foregoing performance bonuses to mitigate the liquidity challenges, which contributed to a R75 million reduction in expenses but also necessitated an increase of R270 million for the provision for doubtful debts.

Weak domestic economic expansion, coupled with constrained household consumption, resulted in limited growth in domestic traffic volume and reduced consumer spending. The introduction of the lockdown in March 2020 brought the modest traffic volume growth for the year to halt, resulting in a decline compared to the previous year.

We continued to implement prudent financial management, maintaining a strong balance sheet with liquidity buffers extended to June 2021 after increasing credit facilities with banks.


Revenue decreased by 0.03% to R7.12 billion (2019: R7.13 billion) for the year ending 31 March 2020.

Aeronautical revenue

Aeronautical revenue decreased by 1.7% to R3.74 billion (2019: R3.81 billion) compared to the 2019 financial year. The drivers of the decrease were a combination of Aircraft Movement decrease of 4.1%, 0.9% decrease in Departing Passenger traffic and no aeronautical tariff increase for the year.

Aeronautical revenue (R’000)

Non-aeronautical revenue

Non-aeronautical revenue has grown by 1.9%, with retail revenue per passenger increasing by 1.8% to R58.56 (2019: R57.53). Revenue growth of 12.1% in advertising, 8.6% in property rental and 4.8% in retail reflect stable property rentals and improved retail market conditions during the financial year.

Non-aeronautical revenue (R’000)


Employee costs increased 11% to R1.8 billion (2019: R1.6 billion) in the current year, driven by a basic cost increase of 20.0% due to annual salary escalation, headcount growth and the staff transport cost, which increased by 946% to R117 million (2019: R11 million). The staff transport initiative was launched in December 2018 for the purpose of providing safe and reliable transportation for shift staff after business hours when reliable public transport is not readily accessible.


Operating costs increased by 2% to R2.64 billion (2019: R2.58 million). We have had to contain significant operating cost pressure, particularly from security services and asset maintenance costs to achieve parity with underlying growth of operational traffic volumes. These costs have increased significantly during the previous reporting periods due to factors such as security threats, regulatory compliance and improvement of passenger experience, as we geared up for previously anticipated growth in traffic volumes.

In the 2021 financial year, we are reviewing our operating model to simplify operations and reduce costs.

Property rates and taxes form a significant part of our fixed cost base, contributing up to 15% of the total operating cost.

However, the expenditure for the year decreased by 18.6% to R273 million (2019: R336 million) due to successful rates appeals for the Cape Town International Airport, King Shaka International Airport and O.R Tambo International Airport.


The impairment expense on trade and other receivables increased by 398.1% to R270 million (2019: R54 million). The weak economic climate during the year negatively impacted our customers’ ability to service debt owed to the Company, resulting in the recognition of significant provision for impairment of trade receivables. The provision amounts to 44.6% of trade receivables value at 31 March 2020.


The investment property portfolio increased by 10.3% to R7.7 billion (2019: R7.0 billion), mainly as a result of fair value gains of R721 million (2019: R134 million loss) reflecting the strength of property portfolio rental income, which has remained largely stable.


We made no further equity injections into our concessions during the year under review. A cautionary was issued in February 2019 following an offer for the 10% equity stake in MIAL, stating that the Company is still pursuing the opportunity to sell its stake. The GRU concession has not been profitable since its second year of business, the 2014 financial year. The cumulative losses have led to a total reduction of the value recognised by the Airports Company South Africa at year end to nil (2019: R0, restated from R848 million).


We spent modestly on capital projects, with R1.3 billion (2019: R1.0 billion) spent during the year. A few major infrastructure development projects were in construction during the year, while a significant portion of projects reached procurement decision point. These resulted in limited expenditure during the year and the group remained primarily within a refurbishment and replacement expenditure cycle.

The implementation of the current capital procurement decisions will lead to modest capital cash outflows in the future due to the COVID-19 impact on business. The Group’s capital investments for the foreseeable future are refocused towards airport maintenance and resilience instead of growth and expansion. Certain projects will be placed on hold while some projects are unlikely to be reinstated in the foreseeable future.


We have continued our efforts to improve procurement efficiencies and compliance with applicable laws and regulations. Our investigation capability in line with National Treasury requirements has also been improved to treat irregular expenditure appropriately, with R231 million of prior year irregular expenditure derecognised, R82 million of current year expenditure condoned during the year under review and an additional R1.1 billion recommended to National Treasury for further condonation. The derecognitions and condonations were done on the strength of our systems of control that have largely ensured fairness and equitability of our sourcing processes. Irregular expenditure incurred in the current year amounts to R559 million (2019: R265 million) mainly due to non-conformance with regulations on one major capital expenditure programme procurement process.


Non-current assets 27 421 186 26 706 561 714 625 2,7%
Property and equipment, investment properties and intangible assets26 719 95526 051 927668 0282,6%Investment property fair value gains amounted to R721 million. Additions of R1.3 billion
were offset by depreciation, amortisation and impairments of R1.3 billion.
Investments in associates and joint ventures418 924416 2322 6920,6%Guarulhos International Airport (GRU) cumulative losses have led to a total reduction of investment
value recognised by the group at year end to nil (2019 R0), restated from R848 million).
Other non-current assets282 307238 40243 90518,4%
Current assets3 360 0033 151 642208 3616,6%
Investments and cash and cash equivalents1 735 3091 893 011(157 702)-8,3%
Other current assets1 624 6941 258 631366 06329,1%Trade and other receivables reduced due to higher bad debts
provision of R643 million (2019: R284 million).
Non-current assets held for sale984 833785 570199 26325,4%Comprises R15 million in airside vehicles to be sold via auction and R969 million
MIAL investment, which increased from R785 million due to foreign exchange gains.
Total assets31 766 02230 643 7731 122 2493,7%
Equity22 856 04721 583 7741 272 2735,9%
Non-current liabilities7 116 6747 122 654(5 980)-0,1%
Interest-bearing borrowings5 580 5595 760 519(179 960)-3,1%Borrowings decreased due to the repayment of amortising of loans of R296 million.
Net debt capitalisation was 17% (2019: 18%).
Other non-current liabilities1 563 1151 362 135173 98012,8%
Current liabilities1 793 3011 937 345(144 044)-7,4%
Total liabilities8 909 9759 059 999(150 024)-1,7%
Total equity and liabilities31 766 02230 643 7731 122 2493,7%


Revenue and other operating income7 335 6757 143 261192 4142,7%
Employee costs(1 823 614)(1 647 929)(181 180)-11%20% increase in basic salaries (including benefits such as staff transport) to R1.5 billion, offset by a 74% reduction in bonuses (R39 million).
Operating expenses(2 633 271)(2 582 019)(51 525)-2%
Impairment of receivables(270 458)(54 295)(216 163)-398,1%Higher receivables owing, as well as increased risk of customers not paying as a result of trading difficulties and impact of COVID-19 resulted in the higher expense.
EBITDA2 608 3322 864 513(256 181)-8,9%
Fair value gains/(losses) on investment properties721 259(134 222)855 481-637,4%Significant differences in the assumptions used for expenditure rates, gross income, lease renewals resulted in higher net incomes in the 2020 valuation. 2020 valuation considers premiums for the high demand and specialised location of the Group’s properties.
Depreciation, amortisation and impairments(1 316 896)(1 475 574)158 67810,8%
Gains/(losses) from equity-accounted investments2 693(4 226)6 919163,7%
Net finance expense(485 264)(595 789)110 52518,6%
Losses on property and equipment(10 049)(2 914)(7 135)-244,9%
Profit before tax1 520 075651 788868 287133,2%
Tax expense(325 066)(428 143)103 07724,1%
Profit for the year1 195 009223 645971 364434,3%
Effective tax rate21%66%
Cost to income ratio61%59%


Net cash inflow from operating activities2 503 0362 934 714(431 678)-14.7%
Net cash inflow/(outflow) from investing activities(1 354 737)2 488(1 357 225)-54 550.8%
Cash flows from financing activities(947 895)(3 187 399)2 239 504-70,3%
Financial instruments held for trading(1 766)(2 103)337-16,1%
Interest-bearing borrowings repaid(296 355)(2 296 355)2 000 000-87,1%
Lease payments(19 744)(19 744)100,0%
Dividends paid(56 016)(115 604)59 588-51,5%
Interest paid(574 014)(773 337)199 323-25,8%
Increase in cash and cash equivalents(133 648)(250 197)116 549-46,6%
Cash and cash equivalents at the beginning of the year1 123 6431 373 840(250 197)-18,2%
Cash and cash equivalents at the end of the year989 9951 123 643(133 648)-11,9%

Artboard 1@2x


As at 31 March 2020, the Company’s debt level amounted to R6.4 billion (2019: R6.5 billion)  comprised of R4.8 billion in bonds issued under the Domestic Medium Term Note (DMTN) programme and amortising loans of R1.6 billion.

We repaid R296 million in debt during the year comprising of amortising loans, while interest payments amounted to R550 million.

Funding sources as at 31 March 2020 were as follows:

  • Inflation-linked bonds (26%)
  • Fixed rate bonds (47%)
  • DFI loans (27%)

Fixed rate debt comprised 73% of total debt as at the end of the financial year compared with 74% as at the end of the prior year.

Our gearing decreased to 17.0% (2019: 18%) on the back of debt redemptions since 2013. More than R10 billion has been repaid over the past seven years.

During the year, the company updated its R30 billion DMTN programme memorandum, together with the information statement which were approved by the Johannesburg Stock Exchange (JSE) on 18 December 2019.


On 26 June 2020, Moody’s downgraded Airports Company South Africa corporate family rating from Ba1 to Ba2. Moody’s also downgraded the national scale rating of the Company from to The outlook has been changed to ‘negative’ from ‘ratings under review.’

The downgrade takes account of the Company’s rising credit and takes into account the liquidity risks due to the sharp decline in traffic as a result of the implementation of travel restrictions.


The COVID-19 pandemic poses a significant threat to global health systems and economic markets. The aviation industry has been hard hit by the resultant travel bans, restrictions and the negative global economic outlook. The group is reviewing its Business Plan in response to COVID-19 impact. In the short term, the Company will cut capital and operating expenditure to ensure financial sustainability amid a projected decline in traffic numbers.

To meet liquidity requirements, the company expects to utilise credit facilities in the 2020/21 financial year to bolster its liquidity position due to the negative impact of COVID-19 on earnings. Consequently, interest payments are expected to increase in the next financial year due to increased borrowings.