Københavns Lufthavne A/S : Årsrapporten 2023

Annual Report 2023

Next step towards the future airport

Københavns Lufthavne A/S Lufthavnsboulevarden 6, 2770 Kastrup, Denmark Company reg. (CVR) no.: 14 70 72 04

Copenhagen Airports

ANNUAL REPORT 2023

Annual General Meeting

The Annual General Meeting will be held on 16 April 2024 at Vilhelm Lauritzens Alle 1, 2770 Kastrup, starting at 3:00 p.m. The meeting will also be accessible via webcast.

Report on corporate responsibility The statutory reports on corporate responsibility, the under-representedgender and board diversity prepared in accordance with sections 99a, 99b, 99d and 107d of the Danish Financial Statements Act are provided in the Management's report in the sections The big picture, Performance, Environment, Social and Governance.

In these sections, Copenhagen Airports A/S (CPH) explains how we worked with non-financial business targets in 2023 and outlines the results achieved during the year. For a more detailed, quantified description of corporate responsibility (CR) results achieved in 2023, see the non- financial statements on pages 129-147.

The above-mentioned sections also represent CPH's yearly Communication on Progress (COP) to the UN Global Compact, of which CPH has been a member since 2011. Thus, this report serves as a declaration of our continued support for the UN Global Compact and its ten principles.

Forward-looking statements

- risks and uncertainties

This Annual Report includes forward- looking statements as described in the US Private Securities Litigation Reform Act of 1995 and similar acts of other jurisdictions on forward-looking statements, including in particular statements concerning future revenues, operating profits, business expansion and investments.

Such statements are subject to risks and uncertainties, as various factors, many of which are beyond CPH's control, may cause actual results to differ materially from the guidance expressed in the Annual Report. Such factors include general economic and business conditions, changes in exchange rates, the demand for CPH's services, competitive factors within the aviation industry, operational problems in one or more of the Group's businesses, and uncertainties relating to acquisitions and divestments. See also Risk management on pages 72-74.

Copenhagen Airports A/S

Lufthavnsboulevarden 6

2770 Kastrup

Denmark

Tel.	[phone]
Web	www.cph.dk
Company reg. (CVR) no.	14	70 72 04
Established	19	September 1990
Municipality of registered office	Tårnby

Designations

Copenhagen Airports, CPH, the Group and the company are used synonymously to refer to Copenhagen Airports A/S consolidated with its subsidiaries and associates.

Copenhagen Airport

The airport at Kastrup, Copenhagen, owned by Copenhagen Airports A/S.

Roskilde Airport

The airport at Roskilde owned by

Copenhagen Airports A/S.

Published by Copenhagen Airports A/S

Design and layout

Studio C

Photographers

Mads Armgaard

Mathilde Schmidt

Translation and proofreading

Borella projects

ISSN: 1904-25585

2 ANNUAL REPORT 2023

Contents

Management's report

The big picture		Environmental		Governance
From Board & Management	5	Climate	36	Risk management	72
Key figures and highlights	7		Environment	44	Safety and security	75
Business model & environment	12		Noise	50	Business ethics	77
Business strategy	15		Circularity	53	Taxation	78
Corporate responsibility	18				Shareholder information	79
Outlook	20				Corporate governance	80
			Social		Board of Directors &
			................................Attractive workplace	56	Executive Management	82
Performance			Diversity, equity & inclusion	60
Passengers & terminals	22		Health & safety	65
Aeronautical business	25		Local community	69
Non-aeronautical business	30
Investments	32

Consolidated financial &	non-financial statements
Consolidated financial		Consolidated non-financial			Independent auditor's reports	150
performance & statements		statements (unaudited)			Independent auditor's
Financial performance	86	2023 EU Taxonomy Report	130		limited assurance report	154
Income statement	87		ESG & KPI overview	135
Group balance sheet	88		Notes to the non-financial statements	136
Balance sheet	89					Financial statements of
....................................Equity & dividend	Management's statement			the Parent Company
Statement of changes in equity	91			Financial statements of
Cash flow statement	92	& auditor's reports			the Parent Company	156
Notes to the financial statements	94	Management's statement	149

3 CONTENTS

The big picture

/  From the Board

/  Key figures and highlights

/  Business model & environment /  Business strategy

/  Corporate responsibility /  Outlook

FROM THE BOARD

Letter from the Chairman  2023

In 2023, we saw passengers return to Copenhagen Airport in good numbers, and in many areas the year marked a turning point and new ­beginning, allowing us to now look forward.

Today, Copenhagen Airport is known to be one of the world's best-functioning and most attractive airports. This is a status that we are tirelessly working to maintain and enhance so that going forward we can ensure connec­ tivity to Denmark for the benefit of the coun- try's business, labour market and tourism.

As Denmark's leading international airport, we must also ensure access to the rest of the world through direct flight connections.

In 2023, Copenhagen Airports A/S (CPH) recovered further from the COVID-19 crisis. Passengers returned in higher numbers, more routes, shops and restaurants opened, a new charges agreement was secured, and a new legislative framework for CPH's land use was adopted. However, we are still not back at

the level before the pandemic, and we are still suffering from some of the consequences of the crisis, most notably a build-up of debt. Nevertheless, we are on our way back - or rather forward - towards an airport focusing on topics such as sustainability, digitisation and people.

Progress despite challenges

The year ended with a pre-tax profit of DKK 398 million and 26.8 million passengers having passed through the airport. This is the highest number of passengers since the COVID-19 pandemic, up 21% on 2022, but we are still not back to the level of 2019 - the year before the pandemic hit. Revenue was DKK 4,061 million, up 15% on 2022, but down 7% on 2019. The aviation industry

is still challenged by the war between Ukraine and Russia. The closure of Russian air space to European airlines has made it difficult attracting new and additional routes to Asia, as the airlines are still forced to fly either south or north around Russia.

Although the COVID-19 crisis is now behind us, it has left CPH with a debt burden, which has put pressure on both our aeronautical and non-aeronautical business areas. During the first two years of the crisis alone, we had to borrow over DKK 2 billion to keep the airport running, which is our social duty as critical infrastructure. That debt has to be repaid, while at the same time we need to be able to invest in the future of the airport and maintain our position. The combined value

created by the two business areas is crucial to our ability to invest in developing the airport and further strengthening CPH's status as northern Europe's most important hub.

Strong desire to travel and new routes The number of passengers in 2023 was the highest in four years. In January alone, numbers were twice as high as in the same month of 2022, and over the three summer months around 8 million passengers passed through the airport - almost a million more than during the previous summer.

During the course of the year, the airlines opened a number of new routes, and overall in 2023 there were 321 direct routes from Copenhagen to 164 different destinations

5 THE BIG PICTURE / FROM THE BOARD

As an airport we have a responsibility to ­contribute to a more climate-friendly­aviation

industry and, in this regard, partnerships­are the key to innovative ­solutions.

divided between 60 airlines. Aeronautical revenue for the year totalled DKK 2,193 million, an increase of 18% relative to 2022.

Preparing the airport for the future

In 2023, CPH continued the expansion and development of Terminal 3. This involves doubling the size of the baggage reclaim and increasing the capacity of passport control in Pier C. Additionally, the flow areas and shopping centre are being improved with wider passageways and more shops and food

• beverage units. The expansion entails the addition of 60,000 new square metres and the rebuilding of 11,000 square metres.

New agreements secured

In 2023, we negotiated a new commercial charges agreement, which will run from 2024 to the end of 2027. The new charges agreement and the service level agreement concluded as a supplement give us the platform to develop the airport - which requires major investment - including our ongoing expansion of Terminal 3.

In autumn 2023, the Danish parliament adopted a new legislative framework for CPH's land use. The new legislation allows us to continue to develop the airport, adapting its physical infrastructure to the future

requirements of a modern airport so that we can maintain and develop our position as a world-class transport hub. Among other things, the adoption of the legislative framework means that the "cross-wind runway" can be moved closer to Øresund, creating space for new, modern stands for the lower-noise and more fuel-efficient aircraft of the future as an extension to the existing terminals.

The work towards a greener airport Climate challenges for companies and society as a whole are something that we will need to address collectively for many years to come, and as an airport we have a responsibility to contribute to a more climate-friendlyaviation industry. CPH has set ambitious goals for reducing CO2 emissions from operating the airport, but the biggest contributor of emissions is the aircraft. In this regard, partnerships, including with the government, are the key to innovative and more climate-friendlysolutions.

CPH is committed to making the airport net zero by 2030. The transition will not be easy given that our energy consumption is equivalent to that of a medium-sized Danish municipality, but in 2023 we introduced a wide range of measures to reduce energy

consumption and pave the way for more energy-efficient airport operations. In 2023, we also set out a number of general goals and principles for how we intend to work with circularity.

It is well known that sustainable aviation fuel (SAF) has a lower climate impact than conventional aircraft fuels, and in 2023 a large international experiment carried out at our airport showed that SAF also emits fewer ultrafine particles, which means it also has a positive effect on air quality. CPH is excited about the research results, which support our work to reduce harmful aircraft emissions and improve air quality.

CPH's strategy embraced by our employees

In 2023, we welcomed 583 new employees, in addition to the 810 that we welcomed in 2022. With these extra hands, and a focus on digitisation, training and maintaining skills as well as strong cross-functional collaboration, the organisation was ready for the high season and able to process the many passengers.

Dedicated and engaged employees are at the heart of CPH and play a vital role in maintaining the high standards of service,

security, safety and efficiency provided to our passengers and partners. So a huge thank you to all CPH's employees for their efforts in 2023.

In September, we said farewell to Thomas Woldbye after 12 years as CEO. We thank him for his leadership and passion in developing the airport. He was succeeded by Christian Poulsen, who, following an interim period, took up the role of CEO on 1 January 2024.

Despite the global uncertainties and crises that the world is facing, the terminals are buzzing with activity and desire to travel, and our ambition is to make 2024 an even better year for our employees, partners and passengers, and for Denmark. With nine out of ten passengers back, we are ready for a new beginning and for the journey towards the airport of the future.

Best regards,

Lars Nørby Johansen, Chairman

6 THE BIG PICTURE / FROM THE BOARD

Passengers

• terminals - highlights

Busiest day

101,225 2023

passengers14

Avg. daily take-offs and landings in December

2021

2022

2023

2022 89,211

2021 67,253

JULY

Avg. passengers per day

2023: 73,300

2022: 60,666

2021: 25,149

84%

Passengers' average satisfaction level in 2023. Up from 77% in 2022 due to optimised processes in the terminals

Shops and food & beverage units

December 2022

116

December 2021

69

December 2023

138

7 THE BIG PICTURE / KEY FIGURES AND HIGHLIGHTS

ESG highlights

2

prizes at the Danish

Diversity Awards

In 2023, we launched a number of initiatives to ensure a more diverse workforce, including our "MIT CPH" strategy, which underpins our commitment to facilitating an environment where everyone thrives and has the opportunity to contribute to our shared success.

At the Danish Diversity Awards 2023, CPH won two prizes. Our work to create a more supportive environment for employees with dyslexia and other reading difficulties was honoured as Diversity & Inclusion Initiative of the Year. Also, Maintenance Repair Organisation manager Lars Faurschou was named Employee of the Year for his inclusion efforts.

4

PFAS remediation

plants

In May 2023, we established a new PFAS remediation facility in Roskilde. CPH's new treatment plant brings the total to four: three in Copenhagen and one in Roskilde. Some of the treated groundwater (secondary water) is used for firefighting drills to save clean drinking water. All the plants have been established as part of a voluntary clean-up effort.

30%

reduced emissions of ultrafine particles in experiment

Over four weeks in early 2023, a team of researchers from the German Aerospace Center measured the quantity of ultrafine particles emitted by an SAS aircraft with 34% SAF in the fuel tank. The ground measurements showed that the use of SAF reduced emissions of ultrafine particles by around 30%.

At CPH, we are very excited about the research findings because they support our work to reduce emissions from aircraft and improve air quality.

8 THE BIG PICTURE / KEY FIGURES AND HIGHLIGHTS

Financial highlights

4,061m

Revenue, DKK

3,532m in 2022

Revenue increased by 15% to DKK 4,061 million (2022: DKK 3,532 million) due to higher passenger numbers. Passenger numbers increased by 21%, ­positively affecting both aeronautical and ­ non-aeronautical revenue.

1,404m

lnvestments, DKK

970m in 2022

In 2023, investments totalled DKK 1,404 million, which is slightly higher than the guidance from 7 November 2023.

The investment level was significantly higher than in 2022, as we develop the airport for the future.

398m

Pre-tax gain, DKK

Pre-tax gain of 257m in 2022

The pre-tax result for the year is a gain of DKK 398 million, an increase of DKK 141 million compared to 2022. This is in line with the guidance from

7 November 2023.

The increase is mainly due to the increase in passenger numbers, which positively affected both aeronautical and concession revenue.

9 THE BIG PICTURE / KEY FIGURES AND HIGHLIGHTS

Key figures & financial ­highlights

PAX

(Passengers)

Passengers

Transfer

OPEX

(Operating costs net of one-off items)

OPEX/PAX (DKK/PAX)

OPEX (DKKm)

CAPEX

30,256,703

7,525,441 9,179,654

5,943,548

1,369,058 1,194,414

210.1

165.7

64.8

1,960
1,581	1,521
190.7

26,765,446

22,143,135

4,762,841

3,443,457

96.4 88.8

2,376

2,135

Revenue

Revenue/PAX (DKK/PAX) Revenue (DKKm)

EBITDA

(Net of one-off items)

EBITDA/PAX (DKK/PAX) EBITDA (DKKm)

FCF

209.4	191.8
143.6	159.5	151.7
4,346		4,061
	3,532
1,576	1,761
78.9
	63.1	63.0
46.8	55.1
2,387
	1,398	1,685
353	506
	37.1	10.1
(9.8)
	(70.2)

(Investments in non-current assets)

CAPEX/PAX (DKK/PAX) CAPEX (DKKm)

70.8

62.1

2,142

1,435

43.8

52.4

(Free cash flow)

FCF/PAX (DKK/PAX) FCF (DKKm)

(167.4)

821

271.3

(297)

570

2019 2020 2021

1,404

970

2022 2023

				(645)
	(1,260)
2019	2020	2021	2022	2023

10 THE BIG PICTURE / KEY FIGURES AND HIGHLIGHTS