CELEBRATING 25 YEARS SERVING THE NATION (18th Annual General Meeting for the Financial Year Ended 2016
25 May 2017
Sepang - Celebrating 25 years serving the nation, Malaysia Airports Holdings Berhad (Malaysia Airports) remains upbeat from the continued support showed by its shareholders at Malaysia Airports’ 18th Annual General Meeting (AGM) held today at Sama-Sama Hotel, KLIA.
In his statement, Tan Sri Dato’ Sri Dr Wan Abdul Aziz Wan Abdullah, Chairman of Malaysia Airports said, “Over the past quarter of a century, Malaysia Airports has laid the foundations for a sustainable future. Our airports are the gateway to Malaysia – the country we call home – and we have taken an active role in making Malaysia into the great nation that it is today. We move towards 2020 confident that the business strategies we are enacting today will prove to be the foundation of our future success.”
Corroborating the positive remarks from the Chairman, Datuk Badlisham Ghazali, Managing Director of Malaysia Airports, further added, “We believe that Runway to Success 2020 (RtS2020) is the key to sustainable growth, not only for Malaysia Airports but also for the nation’s aviation industry. While we forge ahead to create a better future, we will give careful consideration to the way in which we balance our competing resources.”
During the AGM, the Board of Directors tabled the financial results for FY2016, which saw Malaysia Airports achieving a record revenue of RM4,172.8 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of RM1,709.9 million. Both Malaysia Airports’ revenue and core EBITDA increased by 7.8% and 7.6% respectively when compared to the financial year ended 31 December 2015 (FY2015). Combining the operating performance of Istanbul Sabiha Gokcen International Airport, Malaysia Airports’ network of airports handled 118.6 million passengers in FY2016, representing a 5.8% growth over FY2015.
The shareholders had approved the payment of a final single-tier dividend of 6.0 sen per ordinary share amounting to RM99.6 million. Combined with the 4.0 sen interim dividend paid in August 2016, the total dividend of 10.0 sen per share in FY2016 is 17.6% higher than FY2015 and testimony of Malaysia Airports’ commitment to provide better returns to its shareholders.
In April 2016, Malaysia Airports launched its new five-year business plan, RtS2020, with the ultimate aim of ‘Becoming a Global Leader in Creating Airport Cities’. The plan has two main thrusts – to strengthen our core airport business, and to expand and diversify our operations. Malaysia Airports aims to strengthen KLIA’s position as an established hub within ASEAN, improve the total airport experience for all our stakeholders as well as continue to increase our international footprint.
Leveraging on KLIA’s substantial land bank to develop a thriving airport city, the KLIA Aeropolis development, another key pillar in RtS2020, will propel further domestic economic growth and emerge as a regional economic enabler.
The announcement of KLIA Air Cargo Terminal 1 as the site of the initial phase of the Digital Free Trade Zone (DFTZ) entailed the signing of a Memorandum of Understanding with the Cainiao Network Technology Co., Ltd to explore the establishment of a regional e-commerce and logistics hub in KLIA Aeropolis. Malaysia Airports believes that this will unlock the value of the South East Asia’s e-commerce market which is expected to reach USD88 billion by 2025.
Extension of Operating Agreements
In December 2016, the Government of Malaysia granted an extension for Malaysia Airports’ Operating Agreements by an additional 35 years to 2069. While the relevant terms and conditions of the Operating Agreements are still being finalised, this extension will provide Malaysia Airports with the long-term stability necessary to achieve its business objectives.
Tan Sri Dato' Sri Dr. Wan Aziz concluded the AGM by thanking all shareholders, customers, airline partners, Government and regulatory agencies, retailers, joint venture partners, vendors and suppliers for their support over the past 25 years.