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As a State-owned company, Airports Company South Africa has a greater mandate than simply delivering profitability for its shareholders. We are mandated to advance South Africa’s national agenda of economic growth and development while delivering a sustainably profitable business. We strive to fulfil this mandate by conducting our business in an ethical manner that enables inclusive growth and creates sustainable value for all our stakeholders.

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StrategyOur three-pillar strategy, namely to Run airports, Develop airports and Grow our footprint is supported by our Sustainability Framework. Each of these elements is aligned to our mission, vision and objectives. We implement our strategy and measure our performance against a set of strategic objectives and KPIs.

Our missionTo develop and manage world-class airport businesses for the benefit of all stakeholders.

Our visionTo be a world-leading airport business.

Vision 2025To be the most sought after partner in the world for the provision of sustainable airport management services by 2025.

Our valuesOur values are defined through the acronym PRIDE: Passion, Results, Integrity, Diversity, Excellence.

Sustainability FrameworkOur Sustainability Framework comprises three elements that guide the fulfilment of our mandate and ensure that our decisions and actions support our journey towards Vision 2025:

Our business

Enhance our reputation, improve passenger experience, increase stakeholder satisfaction, contribute to airport traffic and diversify our business

Our environment

Minimise our environmental impact and strive to be carbon neutral

Our people and society

Contribute more to black economic empowerment and support black business growth; provide improved access to airports for South Africans; improve airport connectivity to the regions we serve; diversify our workforce; and create a positive environment

Horizon 2By 2025: Build emerging businesses and drive medium-term growth

Horizon 3Beyond 2025: Create viable options to ensure the Company’s success in future

Horizon 1By 2020: Extend and defend our businesses

Long-term horizonsOur strategy is implemented over three time horizons to create value over the short, medium and long-term.

Strategic outcomesThe effective application of our strategy will result in the following strategic outcomes:

• Long-term sustainable value creation• Strengthening our reputation and continuing to build

win-win partnerships with our stakeholders• Continuously improving the passenger experience• Becoming a digitised business• Identifying and securing new business opportunities• Managing and developing a high-performance team• Accelerating sustainability and transformation

programmes• Reducing our environmental impact

Strategy mapOur strategy map depicts our strategic objectives and KPIs in the context of our balanced scorecard.

Our KPI performance in relation to our strategic pillars and Sustainability Framework is summarised on page 16.

Internal processes

Organisational capacity

Customer

Financial

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Improve Leadership Culture Index

Increase stakeholder satisfaction through effective partnership

Run airports

Promote regional integration and localisation of our airports

Support black business entrepreneurship

Maintain and improve our contribution to broad-based black economic empowerment (B-BBEE)

Reduce our environmental impact

Contribute to increase traffic through the airports we operate

Improve connectivity to regions we serve

Achieve demographically represented workforce

Increase our reputation through demonstrated business excellence

Create value for shareholders

Develop airports

Improve the passenger experience through demonstrated operational excellence

Diversify business portfolio (2 & 3)

Foster a positive employee workforce and environment

Provide equitable access to safe airports in all South African regions to allow more people to fly

Grow our footprint

Our business Our environment Our people and society

LEGEND

Diversify business portfolio

By running our airports efficiently and developing them innovatively, we will enhance

the regional economy.

Improving our capacity and infrastructure grows our footprint through effective operation

and partnerships.

A larger footprint increases our exposure to diverse methods, allowing us to learn and grow,

and improve the way we run airports.

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Our current strategic objectives, KPIs and initiativesWe believe that our strategy should be responsive to our stakeholders’ needs and our changing business environment. We appointed a Chief Strategy and Performance Officer to strengthen the process of strategic development, implementation and monitoring in the Company. The following table summarises our performance related to the strategic pillars and Sustainability Framework, with more detail provided throughout the integrated report.

Strategic objectives KPIs 2018 Initiatives delivered in 2018

Our business Target ActualRun airports Develop airports Grow our footprint

Create value for shareholders Return on equity 4.2% • Integrated data management across our airports to improve efficiency and effectiveness of airport management

• Implemented digitisation strategy to strengthen safety and enhance customer experience

• Strengthened stakeholder engagement with new key account model

• Embarked on R891 million infrastructure investment programme

• Strengthened project management for more effective project delivery

• Expanded provision of airport management services to Mthatha Airport and Kotoka International Airport in Ghana

• Formalised relationships with airport authorities in Cameroon, Liberia and Namibia

• Established Gauteng Route Development Committee and continued to collaborate with route development agencies in Western Cape, KwaZulu-Natal and Eastern Cape

• Secured new routes linking St Helena and Rome to Johannesburg, and Cologne to Cape Town; and expanded flight offerings on seven existing routes

Diversify business portfolioGenerate non-core income R58.8 million

Non-aeronautical revenue as a percentage of total revenue 50%

Increase our reputation through demonstrated business excellence Reputation Index ≥ 59

Increase stakeholder satisfaction through effective partnership Airport stakeholder satisfaction 3.7

Improve the passenger experience through demonstrated operational excellence Passenger satisfaction At least 7 ranked airports

Improve connectivity to regions we serve Grow regional airport departing capacity 5%

Contribute to increase traffic through the airports we operate Increase ORTIA connectivity 135

Provide equitable access to safe airports in all South African regions to allow more people to fly

Participate in non-ACSA airports in South Africa 40 service man days

Our people and society

Promote regional integration and localisation of our airports Create job opportunities 22 414 • Implemented transformation sector strategies in property, retail, car parking, advertising, information technology and construction sectors to accelerate socio-economic growth

• Appointed ESD partner to facilitate transformation of supplier base

• Introduced measures to accelerate socio-economic growth in construction contracts

• Developed young talent and implemented talent mobility plan in support of business development

Support black business entrepreneurshipGrow black business share of operational and developmental spend 48%

Grow black business share of commercial revenue generated 48%

Maintain and improve our contribution to B-BBEE Achieve B-BBEE level Level 3

Improve Leadership Culture Index Leadership Culture Index ≥ 65%

Achieve demographically represented workforce Promote employment equity 92.4%

Foster a positive employee workforce and environment Employee satisfaction survey 3.8

Our environment

Reduce our environmental impact ACI carbon accreditation level ACI level mapping KSIA and PLZ

• Achieved ACI Carbon level 1 re-certification for four airports

• Preparing for level 2 accreditation

• Secured an uncontested environmental impact assessment for runway realignment project at Cape Town International Airport

Target exceeded Target achieved Working towards achievement of target

LEGEND

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Strategic objectives KPIs 2018 Initiatives delivered in 2018

Our business Target ActualRun airports Develop airports Grow our footprint

Create value for shareholders Return on equity 4.2% • Integrated data management across our airports to improve efficiency and effectiveness of airport management

• Implemented digitisation strategy to strengthen safety and enhance customer experience

• Strengthened stakeholder engagement with new key account model

• Embarked on R891 million infrastructure investment programme

• Strengthened project management for more effective project delivery

• Expanded provision of airport management services to Mthatha Airport and Kotoka International Airport in Ghana

• Formalised relationships with airport authorities in Cameroon, Liberia and Namibia

• Established Gauteng Route Development Committee and continued to collaborate with route development agencies in Western Cape, KwaZulu-Natal and Eastern Cape

• Secured new routes linking St Helena and Rome to Johannesburg, and Cologne to Cape Town; and expanded flight offerings on seven existing routes

Diversify business portfolioGenerate non-core income R58.8 million

Non-aeronautical revenue as a percentage of total revenue 50%

Increase our reputation through demonstrated business excellence Reputation Index ≥ 59

Increase stakeholder satisfaction through effective partnership Airport stakeholder satisfaction 3.7

Improve the passenger experience through demonstrated operational excellence Passenger satisfaction At least 7 ranked airports

Improve connectivity to regions we serve Grow regional airport departing capacity 5%

Contribute to increase traffic through the airports we operate Increase ORTIA connectivity 135

Provide equitable access to safe airports in all South African regions to allow more people to fly

Participate in non-ACSA airports in South Africa 40 service man days

Our people and society

Promote regional integration and localisation of our airports Create job opportunities 22 414 • Implemented transformation sector strategies in property, retail, car parking, advertising, information technology and construction sectors to accelerate socio-economic growth

• Appointed ESD partner to facilitate transformation of supplier base

• Introduced measures to accelerate socio-economic growth in construction contracts

• Developed young talent and implemented talent mobility plan in support of business development

Support black business entrepreneurshipGrow black business share of operational and developmental spend 48%

Grow black business share of commercial revenue generated 48%

Maintain and improve our contribution to B-BBEE Achieve B-BBEE level Level 3

Improve Leadership Culture Index Leadership Culture Index ≥ 65%

Achieve demographically represented workforce Promote employment equity 92.4%

Foster a positive employee workforce and environment Employee satisfaction survey 3.8

Our environment

Reduce our environmental impact ACI carbon accreditation level ACI level mapping KSIA and PLZ

• Achieved ACI Carbon level 1 re-certification for four airports

• Preparing for level 2 accreditation

• Secured an uncontested environmental impact assessment for runway realignment project at Cape Town International Airport

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