Competitive advantages

Primary airport system serving Northern Italy

The airports managed by SEA rely on a particularly advantageous geographical location in terms of user base, featuring a significant presence of industrial and advanced service sector enterprises and served by logistical infrastructure which facilitates the pursuit of economic activities.

Distribution of air passenger traffic – Italy 2012 (%)
Northern Italy  43
Central Italy 34
Southern Italy 23
Total Italian passengers (000’s) 146,610
Source: SEA, Assaeroporti

The natural “catchment area” of the Milan airports comprises a major economic and industrial hub in Europe, including – among others – the Lombardy Region. The positioning of the Milan airports is further enhanced by its location on a number of the major trans-European transport routes. As a result, the Milan airport system in 2012 handled nearly 19% of Italian passenger traffic and 44% of that concerning Northern Italy.

Distribution of air passenger traffic – Northern Italy 2012 (%)
Milan 44.3
Rest of Lombardy 14.3
Rest of Northern Italy 41.4
Total Northern Italy passengers (000’s) 62,468
Source: SEA, Assaeroporti

Diversified and extensive airport system

The Milan airport system is significant both within the Italian and European contexts, second in Italy and ninth in Europe for passenger traffic volumes, and first in Italy and sixth in Europe for volumes of cargo transported (not considering courier terminals).

Italian airport rankings by passenger traffic* 2012 (thousands)

Italian airport rankings by passenger traffic* 2012 (thousands)

*Including direct transits
Source: SEA, Assoaeroporti

 

Italian airport rankings by cargo traffic 2012* (tonnes)

Italian airport rankings by cargo traffic 2012* (tonnes)

*Excluding postal traffic
Source: SEA, Assaeroporti

 

Balanced portfolio of airlines and destinations served

SEA benefits from a diversified and balanced mix of airlines operating from the terminals managed, none of which in 2012 representing more than 30% of overall traffic.

The portfolio of destinations served and frequencies is wide and varied: at December 31, 2012, 180 destinations operated out of Malpensa and 36 out of Linate.

The portfolio of destinations is continually expanding, in particular on routes to and from the Middle and Far East, which are considered areas of high development potential for passenger and cargo traffic.

 

Development of airline numbers/destinations of the Milan
airports

Development of airline numbers/destinations of the Milan airports

*Excluding postal traffic
Source: SEA, Assaeroporti

 

Diversified mix of revenues and with margin for development

SEA Group revenues are broken down between the various areas of activity: in 2012, Aviation, Non- Aviation, Handling and Energy division operating revenues (euro 632.3 million) accounted respectively 50.7%, 26.7%, 17.0% and 5.6% of the overall total.

Group EBITDA in 2012 amounted to euro 146.6 million, significantly increasing (+19.5%) compared to the previous year (euro 122.7 million).

These results were achieved principally thanks to the entry into force of the ENAC-SEA Master Agreement in 2012, which reduced the tariff gap compared to the European sector average and provided a stable regulatory environment for the carrying out of investments.


Development of airline numbers/destinations of the Milan airports

Operating revenues of the Business - 2010-2012 (%) total

Note: the revenues % does not include the IFRIC effect
Source: SEA


Operating excellence and modern infrastructure

The Milan airports rely on a system of runways and associated specialised airport infrastructure considered cutting edge and with a capacity to accept all types of aircraft currently in use.

The high degree of operational reliability of the Milan airports and the high service quality standards offered are recognised by the international certifications achieved by SEA and by the Group companies (ISO 9001, ISO 14001, OHSAS 18001 and ISAGO).

Certified Quality–Environment–Safety management systems (current and scheduled)
  Environment Safety Social
  Current Scheduled Current Scheduled Current Scheduled
SEA Airport Carbon Accreditation
- Neutrality Level (1)
- ISO 14001 (8)
ISO 50001 (6) OHSAS 18001
Dasa Register (4)
UNI CEI
EN 45011 (5)
 
SEA Handling  ISO 14001    ISAGO (2)      
SEA Energia  Registrazione EMAS (7)
ISO 14001

OHSAS 18001 (3)      
(1) ACI (Airport Council International) Europe Certification to incentivise the contribution by airports to the fight against climate change. A series of actions for the control and reduction of direct and indirect emissions of CO2 are scheduled. In June 2010 SEA reached level 3+, with Linate and Malpensa classified among the leading airports in Italy (and among the leading in Europe) for achieving carbon “neutrality”. (2) Certification provided by the IATA and relating to the safety service quality. SEA Handling is the first handler in Italy to obtain this certification. (3) Voluntary application, within the organisation, of a system which guarantees adequate control regarding the Safety and Health of Workers, as well as compliance with the regulations in force. (4) Concerns the changes to the airport infrastructure at Linate and Malpensa to ensure their usage by persons with reduced mobility, in order to guarantee equality of opportunity. (5) Concerns the passenger assistance service to those with reduced mobility at airports. (6) International standard for the managements of energy, which focuses attention on the energy yields of the organisation and requires that the promotion of energy efficiency is considered throughout the organisation’s distribution chain, as a requirement to be sought from suppliers. (7) Enterprises and organisations wishing to voluntarily commit to the evaluation and improvement of their environmental efficiency may adhere to the Ecomanagement and audit scheme (EMAS). EMAS principally provides stakeholders with an instrument through which the environmental attributes of an organisation may be attained. (8) Concerns the provision of an Environmental Management System which identifies, controls and monitors the performance of the organisation


Solid economic and financial performance

Revenues, EBITDA and Net Result 2010-2012 (in thousands of euro)

Revenues, EBITDA and Net Result 2010-2012 (in thousands of euro)

Note: Operating revenues of euro 720,956 include the IFRIC effect
Source: SEA

SEA over the last three years has sustained significant profit levels and a strong value generation at operating level despite the impacts of the de-hubbing of Alitalia and the global economic and financial crisis, demonstrating its capacity to react to extraordinary events through strategic flexibility and to attract new airlines and develop businesses outside of the Aviation business.

The SEA Group benefits in addition from a solid financial structure, despite the significant investment commitments related to the infrastructural development in progress

 

Infrastructural investments 2010-2012 (millions of euro)

Infrastructural investments 2010-2012 (millions of euro)

Source: SEA


Management team

The SEA Group relies on an organisational and managerial structure which supports the growth and implementation of the strategic guidelines, primarily thanks to the consolidated experience of senior management within large enterprises operating in complex sectors and, in particular, in the air transport sector.

In particular, the current top management has demonstrated its ability to react to the challenges of contracting numbers (the de-hubbing of Alitalia, the economic and financial crisis) by tapping into growth and development opportunities through operating flexibility, the redefinition of strategies and by anticipating major developments within the market.

Stakeholder opinion on SEA management (scale 1-5)
  Suppliers  Aviation Clients Non-Aviation Clients  Banking/financial community Companies and Institutions
Competence 4.09 3.67 4.33 4.5 4.31
Reliability  3.75 3.38 4.33 4.17 3.88
Correctness 3.83 3.57 4.56 4.33 3.94
Openness/Availability 3.83 3.76 3.89 3.83 3.69
Source: SWG, Survey of SEA Group stakeholders 2013

The quality of SEA’s management was recognised by the principal stakeholders who allocated very positive average scores concerning competence, reliability, correctness and availability in their interactions with group management.

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