SWISSPORT INTERNATIONAL AG

COMPANY PROFILE
2019
Swissport International AG Company Profile 2019 3

Dear readers,

In 2019, Swissport achieved solid results in a Furthermore, we are making efforts to increase
weakening market environment. On revenue of data availability to efficiently steer our busi­
3.13 billion euros, operating EBITDA1 came to ness and to create a framework that supports
272.3 million euros. In constant currency, our data-driven service innovations.
revenue was up 2.3 percent, largely in line with
sector growth, while EBITDA was 2.4 percent As the global leader in aviation ground services,
below previous year – and roughly on previous we are comm itted to contributing to the success
year in actual terms. Our operating cash flow1 of airlines and logistics companies, while delivering
improved to 196.4 million euros in 2019, up from sustainable growth to our investors.
182.5 million euros the year before.
Thank you for your interest in Swissport.
In our pursuit of continuous improvement, we
remain focused on enhancing our operational
execution in line with our quality objectives and
our service principles. As a people business, we
continually invest in our employees. To this end,
we train our frontline employees and foster the
development of leaders across the organization. Eric Born
Since 2018, more than one thousand midlevel President & CEO
leaders have enrolled in leadership development. Swissport International AG
15 senior­level managers attended a pilot program
on transformational leadership in 2019.

1
Pre-IFRS 16, as defined in our audited financial statements
4 Company Profile 2019 Swissport International AG

6
2019 KEY FACTS
Facts and igures are to the point, but don’t account for the
people of Swissport standing behind them – around 64,000 in
2019. Our company profile tells the stories behind the numbers.

CONTINENTS

115 47
COUNTRIES

WAREHOUSES

5 LOUNGE GUESTS (million)

4.6
TONS OF CARGO (million)
Swissport International AG Company Profile 2019 5

265
2.1
AIRCRAFT TURNS (million)

AIRLINE PASSENGERS (million)

>850

300
CORPORATE CLIENTS

AIRPORTS
 64,000
EMPLOYEES
Company Profile 2019 Swissport International AG
Swissport International AG Company Profile 2019 7

CONTENTS

CEO's statement 3 Our commercial ambitions 26

2019 key facts 4 Our competitive advantage 29
Swissport at a glance 8 Full range of mission-critical services 30
Group executive management 10 Competitive cost base 32
Overview of results 12 Safe and industry-leading operations 34
Interview with the CEO 14 Global consistency 36
Our global presence 16 Sustainable stakeholder relations 38
Our story 18 Pricing discipline and commercial governance 40
Market review 20 Corporate sustainability 45
Objectives & strategy 22 Credits / Contact 52
Our corporate strategy 24
8 RUBRIK
SWISSPORT AT A GLANCE Company Profile 2019 Swissport International AG

1 SWISSPORT
AT A GLANCE
Swissport International AG Company Profile 2019 RUBRIK 9

Group executive management 10

Overview of results 12
Interview with the CEO 14
Our global presence 16
Our story 18
Market review 20
Swissport International AG Company Profile 2019 SWISSPORT AT A GLANCE 11

GROUP EXECUTIVE MANAGEMENT1

Eric Born Glenn Rutherford Luzius Wirth

President & CEO 2 Executive Vice President Executive Vice President
Asia-Pacific Europe, Middle East & Africa

Andreas Hugener Dr. Peter Waller

Chief HR Officer Chief Financial Officer

1
As per 30 April 2020
2
Ad-interim EVP Americas
12 SWISSPORT AT A GLANCE Company Profile 2019 Swissport International AG

OVERVIEW OF RESULTS
2019 BUSINESS PERFORMANCE
Against a weakening global economy, Swissport was able to achieve solid results by
taking decisive cost-efficiency measures. A strong de-icing business in the first
quarter and the first full-year consolidation of Aerocare also had a positive impact.

FINANCIAL PERFORMANCE OPERATING PERFORMANCE Management statements not included in the

consolidated financial statements section com­
In 2019, revenue growth of 2.3 percent was largely The weakening global economy and inter­ menting on “operating result” refer to opera­
in line with the sector’s overall growth. EBITDA national trade impacted our business, ting earnings before interest, tax, depreciation
stood at 272.3 million euros, 2.4 percent below especially in the cargo segment. Swissport and amortization (“operating EBITDA”) as
previous year in constant currency and roughly performed 2.05 million aircraft turns and reported in → note 1.1. Segment Information
on previous year in actual terms. handled 4.62 million tons of cargo. in the financial report. Statements discussing
results’ comparison year on year are made on
a constant currency basis, i.e., adjusted for
REVENUE AIRCRAFT TURNS ­movement in foreign currency exchange rates

€ 3.13 bn 2.05 m
between the two comparative periods.

2018: €3.06 billion 1

2018: 2.16 million

EBITDA2 CARGO TONS

€ 272.3 m
2018: €278.9 million 1
4.62 m
2018: 4.78 million tons

1
On a constant currency basis
Operating EBITDA (pre-IFRS 16), as defined
2 

in our audited financial statements

Swissport International AG Company Profile 2019 SWISSPORT AT A GLANCE 13

REVENUE AND EBITDA CASH FLOW AND LIQUIDITY

2019 2018 2018
Operating cash flow improved over the previous
constant as reported
MEUR currency year, owing in part to a solid business per­
Revenue 3,134.5 3,063.9 2,994.5 formance and effective working capital manage­
Operating EBITDA 272.3 278.9 273.2 ment. Total liquidity increased overproportionally
Operating EBITDA Margin 8.7 % 9.1 % 9.1 % due to a decrease in investment activity and a
long-term re-financing in August 2019.

REVENUE PER REGION

OPERATING CASH FLOW 1

+ 7.6 %
Our revenue growth stemmed from increased activities from various business
lines across the globe. Strategic acquisitions also supported top-line growth.

2019: €196.4 million

2018: €182.5 million

2019 2018
CASH AND CASH EQUIVALENTS

EMEA 54.7 % EMEA 55.8 %

+ 74.5 %
31 Dec 2019: €253.4 million
Americas 35.4 % Americas 36.0 % 31 Dec 2018: €145.2 million
APAC  9.9 % APAC  8.2 %

1
Operating cash flow (pre-IFRS 16), as defined
 
in our audited financial statements
14 SWISSPORT AT A GLANCE Company Profile 2019 Swissport International AG

CEO’S INTERVIEW
Eric Born, Swissport’s President & CEO, reviews an
eventful 2019 and shares his outlook on 2020.

How do you rate Swissport's business results Would you say that Swissport’s business model continuously work on further improving our
in 2019? with ground services and cargo handling is overall efficiency. This will strengthen Swissport’s
We achieved solid results in a weakened market working to our advantage under more challenging ability to compete for business, help in realizing
environment. Our revenue climbed to 3.13 market conditions? margin-improvements and increase our cash-
billion euros. That’s 2.3 percent more than in Absolutely. The ground services business, which flow. In the longer term, we will be able to
2018 on constant currency and 4.7 percent contributes about 80 percent of group revenue, further strengthen our balance sheet and increase
more in real terms. Our operating EBITDA was added stability. In line with past market our capability to invest. On the revenue side, we
272.3 million euros, a 2.4 percent drop over last behavior, the segment reacted to the global aim for growth at least in line with the sector.
year at constant currency, but roughly stable in economic slowdown with a delay and a smaller
real terms. Our operating cash flow increased contraction than cargo. It also has a higher When Swissport acquired Aerocare in 2018, it
to 196.4 million euros, a 7.6 percent year-on- share of variable cost and we can swiftly react had high hopes for the Australian affiliate to
year improvement which was supported by our to downturns by adapting our workforce or by serve as a platform for growth in Asia-Pacific. Is
effective working capital management. selling equipment. We successfully did this in the business delivering on the expectations?
Brazil in 2019, for example, where a sizeable We continue to see opportunities across the
In 2018, the first-time consolidation of our newly share of our revenue was lost due to the market Asia-Pacific region. We are expanding our
acquired business in Australia and New Zealand exit of a client. Cargo, on the other hand, current activities and developing new lines of
contributed a significant share of our above- contributes higher margins, which compensate business, with a focus on Australia and New
market growth. This effect was no longer there for the risks associated with long-term lease Zealand, where we can indeed build on the basis
in 2019, of course. And in the spring of 2019, the obligations for facilities and equipment. of our existing operation. Next year, a brand-
weakening global economy increasingly impacted new airfreight warehouse will go online in
sector growth. As a result, our EBITA-margin Where do you see the main challenges for Melbourne, Australia, our first on the continent.
ultimately slipped by almost half a percentage Swissport? And in Perth, we will open the first Australian
point compared to 2018. So 2019 was not Process efficiency and cost leadership are Aspire airport lounge, with further locations in
great, but all in all it was still a solid year and we becoming ever more important in our industry. the planning. And Skycare, the former fixed base
are working hard to improve further. And now we are operating in a weaker economic operation of Aerocare, has been integrated in
environment than just 18 months ago. Swissport, Swissport Executive Aviation. I am pleased to
thanks to its position as the world market see that Asia-Pacific is delivering on our
leader, is ideally positioned to strive for and aspirations as a platform for growth.
defend cost leadership in key markets. We
 SWISSPORT AT A GLANCE 15

“We are also continuing to develop smaller

business lines with a strategic focus on
high-margin aviation services.“

Apart from our Asia-Pacific expansion, where Where do you see Swissport in 2020?
else is Swissport investing? From a macroeconomic perspective, 2020 got
We are focusing on projects of strategic impor­ off to a bumpy start. The global economic
tance. In Brussels, Belgium, we are investing in a slowdown became more pronounced in the fourth
25,000-square meter warehouse. In Frankfurt, quarter of 2019 and the Covid-19 health crisis
Germany, we are developing a 17,000-square adds to the uncertainty. Depending on the
meter facility. We are also making tangible further course of the pandemic and the timing
progress in redesigning our IT infrastructure and and speed of the recovery in demand, 2020
applications landscape, which will support a could be a rocky year for aviation. We will
more data-driven steering of the business and continue to do our homework on the cost side,
service innovations. The multiyear project is well work to further enhance our service level and
under way. seize attractive market opportunities.

We are also continuing to develop smaller

business lines with a strategic focus on high-
margin aviation services. Our airport lounge
business, which operates under the Aspire brand,
is one such example. While still comparatively
small in revenue terms, we see a lot of potential
here. The segment grew profitably last year and
Aspire now operates 48 lounges worldwide.
Another inter­esting business that we continue
to expand are load control services. In Nairobi,
Kenya, we opened an additional office providing
central­ized load control services. It complements
the first such unit in Casablanca, Morocco, and
our load-control teams in Zurich and Geneva.
16 SWISSPORT AT A GLANCE Company Profile 2019 Swissport International AG

OUR GLOBAL PRESENCE

92
AVIATION SERVICES ON SIX CONTINENTS
By the end of 2019, Swissport was operating at 300 airports in 47 countries.
We have a broader global presence than any of our competitors and our clients
benefit from the industry’s widest single-source service portfolio. NORTH AMERICA

Swissport’s global presence in combination with As a global organization, Swissport strives to

our knowledge of the local markets and the provide its international clients with services that
breadth of our service portfolio, is the basis of are consistent around the globe. Therefore,
our continuous success in a competitive environ­ standardizing our structures and processes
ment. We proudly serve more than 850 corporate continues to be high on our agenda. Our Swissport
clients with airport ground services and air cargo Formula, first introduced in 2008, is a proven
handling at 300 airports globally. set of principles that defines the way we work –
focusing on training and operations. It also serves
With the acquisition of Australian Aerocare in as a framework for standardization. As we
2018, Swissport expanded its footprint to six continue to further digitize our business processes
continents. While Aerocare was originally focused and our service delivery, standardization becomes
on airport ground services, our Australian even more important. It will allow us to unlock the
management team moved swiftly to build on ­full potential of our industry expertise to the
the Group’s service portfolio, launching expan­ bene­fit of our clients.
sion projects into air cargo handling and the
airport lounge business. At year-end, work was

34
under way for the opening of a cargo ware­
house in Melbourne, Swissport’s first such facility
in Australia. And in Perth, Australia, the Group’s
first Aspire airport lounge on the continent was
under construction.
SOUTH AMERICA

1
As of March 2019
Swissport International AG Company Profile 2019 SWISSPORT AT A GLANCE 17

80
EUROPE
20 THE INDUSTRY’S MOST
COMPREHENSIVE NETWORK
ASIA

47 COUNTRIES

45
26EMEA

16Americas

5APAC

AFRICA
64,000 EMPLOYEES

29
> 29,000EMEA

~29,500Americas

> 5,500 APAC

PACIFIC
300 AIRPORTS

300
125EMEA

126Americas

49APAC

AIRPORTS WORLDWIDE
18 SWISSPORT AT A GLANCE Company Profile 2019 Swissport International AG

OUR STORY
FROM LOCAL PLAYER TO GLOBAL LEADER
Cargo services Ferrovial
Swissport was incorporated in 1996. Today, the company is the  wissport significantly expands
S Spanish construction company
its cargo handling business by Ferrovial purchases Swissport
global leader in airport ground services and air cargo handling, acquiring Cargo Service Center B.V. from British private equity
both based on revenue and the number of airports served. with 61 stations in 15 countries. company Candover.

Candover
British private equity company
Candover purchases Swissport
from Swissair Group.

1996 1998 1999 2000 2002 2004 2005 2006

101 130 153 166 180

Swissport is incorporated Global expansion 25 countries UK expansion Asia expansion

Swissport is incorporated in Expansion to Turkey and Swissport expands to 130 Acquisition of Groundstar Ltd. Swissport acquires Globeground
August 1996 in Switzerland South Africa. Acquisition locations in 25 countries. adds five locations and doubles Korea, adding Seoul to its network
with an initial presence in of DynAir in US and Aer Swissport’s business volume in as the third major station in its
Zurich, Geneva and Basel. Lingus Ground Handling the UK. Asia-Pacific network after Manila
 he company subsequently
T in London. and Singapore.
expands into the UK, Germany KLM cargo, SWISS and United
and Brazil. Swissport and KLM conclude Aviation security
five-year worldwide agreement  wissport diversifies and enters
S
covering 64 stations. the security business via its
 ajor outsourcing agreements
M acquisition of Protectas Aviation
signed with SWISS and United Security Ltd., today branded
Airlines. Checkport.

 warded for Best Global Ground

A
Handler five times in a row.

Number of stations
Swissport International AG Company Profile 2019 SWISSPORT AT A GLANCE 19

Growth in Asia-Pacific
Following through on its plan to use
Aerocare as a platform for growth,
Finnair Servisair Swissport announces plans to open an
Swissport wins contract as Swissport substantially air cargo facility in Melbourne, its first in
ground handling partner for expands its global presence Australia, and to bring its Aspire lounge
Finnair’s Helsinki hub. by acquiring the ground business to Perth, Australia.
handling group Servisair.
PAI Partners
Ferrovial successfully concludes HNA Group
sale of Swissport to PAI Chinese HNA Group acquires
Partners. Swissport from PAI Partners.

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
178 191 266 303

Lufthansa Munich Mexico expansion Middle East Expansion

Swissport-Losch, a joint venture Swissport expands its presence Swissport expands into the
with Losch Airport Service, in Mexico to 28 stations Middle East with start-ups
wins the handling of Lufthansa’s via a joint venture with AGN in Saudi Arabia and Oman.
regional fleet as a major initial Aviation Services.
contract at the Munich hub.
Fueling Apron
Flightcare Swissport invests in its fueling Acquisition of German cargo handler
Swissport acquires business through the acquisi­ Apron GmbH makes Stuttgart the second-
Flightcare Spain and tion of a majority stake in AFS largest cargo hub of Swissport in
Belgium. Aviation Fuel Services GmbH. Germany, only topped by its Frankfurt
facility.

Aerocare
Major expansion in the Asia-Pacific
region: Swissport acquires Aerocare, the
number one ground handler in
Australia / New Zealand.
20 SWISSPORT AT A GLANCE Company Profile 2019 Swissport International AG

MARKET REVIEW
Swissport is well positioned to take advantage
FORECASTED ANNUAL
of major trends in the global aviation industry.

3.7 %
GROWTH GROUND SERVICES

FORECASTED ANNUAL

4.5 %
The global economic slowdown became more ROBUST SECTOR GROWTH GROWTH CARGO HANDLING
pronounced in the fourth quarter of 2019 and
2020 got off to a bumpy start from a macro­ Historically, passenger and air cargo volumes
economic perspective, as the Covid-19 pandemic have been outperforming GDP growth by over
sent shock waves through the global economy. 50 percent. Despite the challenging economic
environment, the airport ground services sector
In 2019, the world economy grew by just 2.9 AVERAGE SAVINGS BY AIRLINES
is expected to deliver a compound annual

10–25 %
percent, down from 3.7 percent in 2018, FROM OUTSOURCING SERVICES
growth rate (CAGR) of 3.7 percent between 2018
according to the OECD. Last year’s growth was and 2023, according to a Roland Berger industry
the weakest since the global financial crisis report. For air cargo handling we expect a CAGR
of the previous decade and was projected to of 4.5 percent. And with the risk of a prolonged
pick up only marginally to 3.0 percent in 2020. The impact of Covid-19 on aviation, market
escalating international trade conflicts between uncertainty is growing further.
the US and China and between the US and the OUTSOURCED AVIATION

42 %
EU, persisting uncertainty around Brexit, and HANDLING MARKET
As industry estimates predict a potential doubling
rising tensions in the Middle East continue to of global aircraft numbers between 2015 and
weigh on the industry. All this leads to declining 2035, we expect our sector to grow at least in
volumes and increased pricing pressure. line with these figures. With established oper­
ations at over 300 airports worldwide, Swissport
Despite the short-term challenges, the is well positioned to participate in the sector
medium-term outlook remains positive for growth.
Swissport overall. There are several sup­porting
industry trends.
MARKET DEREGULATION

The deregulation of airport ground services and

air cargo handling in many countries and regions
continues to open new markets to independent
service providers like Swissport. The trend supports Source: Roland Berger industry report
Swissport International AG Company Profile 2019 SWISSPORT AT A GLANCE 21

our growth and continues to be a positive driver and New Zealand and a strong foothold in Japan
of Swissport’s global expansion. and Korea, it is well positioned to leverage on
this trend.
Swissport’s expansion in the Middle East after
the market was opened to international ground In line with our ambitions to build on our newly
service providers, first into Saudi Arabia and acquired Australian business as a platform for
soon after into Oman, has developed favorably. growth, we launched an initiative to expand our
In 2019, Swissport added Dutch airline KLM, cargo business in the greater Asia-Pacific region.
India-based IndiGo, Fly Jordan from Jordan and The Swissport cargo warehouses in Melbourne
Salam Air from Oman to its growing customer and Sydney will be our first such facilities in
portfolio in the Middle East. The prospects Australia. 2019 also saw our Aspire lounge
remain promising. business expand to Australia with Perth planned
to open next year.

OUTSOURCING
INDUSTRY CONSOLIDATION
Outsourcing of ground services and cargo
handling by airlines has led to an increase in the With the top four players accounting for less
share of the freely accessible aviation handling than 30 percent of the global market, the sector
market to an estimated 42 percent of the total remains fragmented, which supports further
market volume. On average, estimates indicate consolidation. Since its foundation in 1996,
a savings potential from outsourcing ground Swissport has been a driver of consolidation in
services and cargo handling between 10 and 25 the industry. Scale contributes to realizing cost
percent. Low-cost airlines with their focus on synergies with respect to investments. There are
cost efficiency are at the forefront here. With its also synergies in global sales and key account
long-standing partnerships with leading low- management.
cost carriers around the world, Swissport has a
strong position in this growing segment, too, Swissport latest strategic expansion was to
and expects the outsourcing trend to continue. Australia and New Zealand by acquiring
Aerocare in 2018. Last year, the group introduced
a leaner global structure with just three regions;
GROWTH POTENTIAL IN Americas, EMEA and APAC and consolidated
ASIA-PACIFIC overheads across the organization to unlock
efficiency gains.
Growth in Asia-Pacific remains high. We expect
this to continue to stimulate demand for air
cargo handling and airport ground services. With
Swissport’s leading market position in Australia
22 RUBRIK
SWISSPORT AT A GLANCE Company Profile 2019 Swissport International AG

2 OBJECTIVES
& STRATEGY
Swissport International AG Company Profile 2019 RUBRIK 23

Our corporate strategy 24

Our commercial ambitions 26
Our competitive advantage 29
Full range of mission-critical services 30
Competitive cost base 32
Safe and industry-leading operations 34
Global consistency 36
Sustainable stakeholder relations 38
Pricing discipline and commercial
governance 40
OUR VISION IS TO BE
THE MOST TRUSTED
SINGLE-SOURCE
GROUND SERVICES AND
CARGO HANDLING
PROVIDER IN THE
AVIATION INDUSTRY.
Swissport International AG Company Profile 2019 OBJECTIVES & STRATEGY 25

OUR CORPORATE STRATEGY

ANCHORED IN A RESILIENT BUSINESS MODEL
Swissport is the world‘s leading independent provider of airport
ground services and air cargo handling based on revenue and
the number of airports served.

Swissport is active in airport ground services, Diversity extends to our client structure and our AIR CARGO HANDLING
including a number of adjacent services like geographical presence, too. Our 850 clients
lounge hospitality, and in air cargo handling. worldwide include multinational airlines, low- With some 4.6 million tons of cargo handled,
There are many benefits to this diverse busi­ness cost carriers, regional carriers, airports and Swissport is one of the global market leaders
model, ranging from exposure to the economic freight forwarders. The top ten account for 30 in this business segment as well. By the end of
cycle, to profit margins, risk profiles of capex per­cent of our Group revenue and even our largest 2019, the company was operating 115 air cargo
commitments and even staff training. client contributes just a single-digit percentage ware­houses, providing clients with a range of
share of Group revenue. With operations across services for general freight, mail and documents,
With its broad portfolio of services, many of a wide variety of markets, including mature as well as specialist shipments, such as express
which are critical to airline operations, Swissport’s markets and emerging markets in Eastern Europe, services and pharmaceuticals. In 2015, the first
business model is not only diverse, but also Africa, Asia and the Middle East, Swissport Swissport cargo warehouse was certified by the
resilient to short-term volume changes by its can cushion declines in one region with positive IATA Center of Excellence for Independent
airline clients. develop­ments in other regions. Validators in Pharmaceutical Logistics (CEIV
Pharma). 14 Swissport facilities were certified
Airport ground services and air cargo handling under the CEIV Pharma standard, or by the
complement each other perfectly. Cargo AIRPORT GROUND SERVICES British MHRA (Medicines and Healthcare products
handling yields higher margins at the cost of Regulatory Agency) or other recognized industry
a steeper risk profile, as Swissport is often Swissport offers its clients ramp handling and associations, by the end of 2019.
committed in long-term lease agreements with passenger services. These include activities
its cargo warehouses. like the movement of aircraft, fueling, de-icing
and anti-icing, baggage handling, as well as
Ground services adds stability to our revenue check-­in, gate and security services, and lounge
stream and is a very flexible business. In a hospitality. Our clients can customize the services
market downturn it is reasonably easy to react they wish to source, ranging from a single
by selling or decommissioning equipment, like service to full hub outsourcing. In 2019, Swissport
a push-back tractor, or to adapt our workforce. performed some 2.1 million aircraft turns and
Last, but not least, there are synergies in served 265 million airline passengers, making it
training and resource planning. the undisputed global market leader.
26 OBJECTIVES & STRATEGY Company Profile 2019 Swissport International AG

OUR COMMERCIAL AMBITIONS

At Swissport, we are committed to sustainable value creation. We want
to further strengthen our leadership in our core markets and expand
our global presence through targeted investments in emerging markets.

We are driving growth by combining organic STRENGTHENING LEADERSHIP We are also driving our expansion by entering
growth with selective acquisitions and green­field AND GROWING PROFITABLY IN into framework agreements with existing clients.
developments. Organic growth comes with CORE MARKETS Such agreements contain terms and conditions
business expansions by airline customers or by for ground services or cargo handling, allowing
diversifying our own service port­folio. We also Swissport has grown consistently since its existing clients to better plan their expansion to
support growth by maintaining a loyal customer founding and continues to develop favorably. new locations – provided that Swissport already
base. Partnerships with our ten largest We seek to build on our existing portfolio offers its services there and has infrastructure in
customers date back over ten years. and exploit new opportunities. place. Such agreements actively support our
core-market growth beyond passive growth, which
Large incremental growth opportunities With the acquisition of Aerocare in March 2018, occurs when clients expand their business.
typically present themselves when airlines Swissport was able to expand its presence to
decide to outsource parts or all of their ground Australia and New Zealand and now offers In addition to realizing profitable growth in core
services or cargo handling. its services on six continents. By the end of 2019, markets, we intend to expand our presence in
the company was active at 300 airports in 47 the fast-growing Asia-Pacific region and other
The outsourcing of ground services by airlines is countries. The acquisition added about six emerging markets. In combination with our
an industry trend that is leading to dispropor­ percent to the Group’s business in terms of operations in Japan and Korea, our presence in
tionate growth in demand for aviation service revenue. Australia and New Zealand provides an ideal
providers. We expect to see this trend accelerate platform for this.
further in the wake of the Covid-19 pandemic. Initially, Swissport will be concen­trating on
leveraging its presence in Australia and New
Contracts typically have a local and not a regional Zealand by winning new airline customers and
or even global scope. This additionally stabilizes by adding new services to former Aerocare's
Swissport’s long-term development, as the traditional offer. In September 2018, following a
commercial impact of contract wins or losses competitive tender focused on safety, quality
is initially a purely local issue. and performance, Air New Zealand chose
Swissport as their ground services provider at
four major Australian airports.
Swissport International AG Company Profile 2019 OBJECTIVES & STRATEGY 27

“At Swissport we know how to grow profitably

and we draw on all levers to achieve this growth.“
Matthias Pape – Head of Business Development

OUR LEVERS OF GROWTH EXPAND IN EMERGING MARKETS from a greenfield start-up into an established
organization.
In aviation services, deregulation is a key driver
of the global market volume expansion. We Since its inception, Swissport Oman has been
expect new opportunities for market entries to adding prominent brands to its client portfolio –
ORGANIC arise from the deregulation in emerging markets. the customer base today includes flydubai, Air
SELECTIVE
CUSTOMER AND We want to exploit economically viable oppor­ Arabia, Turkish Airlines, Pegasus Airlines, Air
ACQUISITION
SERVICE LINE tunities when markets open to competition. New Zealand, and the homebase airline Salam
ACTIVITY
GROWTH Air. In Saudi Arabia, KLM and IndiGo are just
When we consider market entries, whether some of the latest big-name clients that decided
through greenfield developments or an acquisition, to develop their business with us. Onboarding
we maintain a disciplined approach, based on renowned customers helps us consolidate our
commercial rationale and the benefit/risk profile. position as a high quality service provider on the
To this end, we will also continue to focus on Arabian Pensinsula and forms a solid base for
further developing existing emerging markets future growth. We also note that many customers
LARGE projects – both by winning new business and utilize our services across our operations in
GREENFIELD
OUTSOURCING by growing our contract volumes with existing Oman and Saudi ­Arabia, realizing operational
DEVELOPMENTS
PROJECTS clients. synergies.

Where required by local legislation or deemed In emerging markets, too, we capitalize on the
beneficial from a business perspective, we seek trend of airlines outsourcing ground services and
to expand our activities through joint ventures. cargo handling. Our business development team
Such partnerships can also be an effective vehicle continuously analyses opportunities in Eastern
for entering new markets from a risk perspective. Europe, Africa, Latin America, the Middle East
One example was our start-up operation in and Asia-Pacific.
Oman that we had established with a local joint
venture partner, the Al Jarwani Group. In just a
couple of years, our Omani busi­ness has developed
28 OBJECTIVES & STRATEGY Company Profile 2019 Swissport International AG
Swissport International AG Company Profile 2019 OBJECTIVES & STRATEGY 29

OUR COMPETITIVE ADVANTAGE

BASED ON DISTINCTIVE SUCCESS FACTORS
Swissport’s competitive advantage is based on a set 1
of distinctive success factors. They are supported by FULL RANGE OF
MISSION-
the Swissport Formula, which defines the way we work. CRITICAL

6
SERVICES

PRICING
2
THE SWISSPORT FORMULA DISCIPLINE AND COMPETITIVE
COMMERCIAL COST BASE
GOVERNANCE
The Swissport Formula is a management
philosophy and a set of principles to support our
distinctive success factors. It helps Swissport
in creating a sustainable competitive advantage
and in executing its corporate strategy.
5 3
SAFE AND
Our aspirations are the same around the globe. SUSTAINABLE INDUSTRY-
Based on innovation, engagement and reliability, STAKEHOLDER LEADING
RELATIONS OPERATIONS
4
we deliver high-quality, tailor-made solutions to
meet the expectations of our clients. That is why
the Swissport Formula is the way we work. GLOBAL
CONSISTENCY

Watch our video to learn more about

the Swissport Formula UNDERPINNED BY

STANDARDIZED
INNOVATION GLOBAL IT
OPERATIONS &
LEADERSHIP SYSTEMS
TRAINING
30 OBJECTIVES & STRATEGY Company Profile 2019 Swissport International AG

FULL RANGE OF MISSION-CRITICAL SERVICES

Our customers can turn to us for almost any aviation ground service.
Swissport's services range from ramp handling, passenger services and
lounge hospitality to air cargo handling and load control.

Swissport offers a wide range of high-quality AIRPORT GROUND SERVICES Swissport served 265 million airline passengers
services in aviation handling, many of which are handled around 4.1 million flights in 2019. This
"mission critical" for our clients. Swissport Swissport generates around 80 per cent of its corresponds to roughly one aircraft served by our
customers can choose any degree of vertical revenue with classic ramp handling and passenger ramp personnel every 15 seconds.
outsourcing. This can include selected passenger, services. Ancillary business such as airport lounge
ramp and cargo handling services or a full hospitality, executive aviation and load control PASSENGER SERVICES
hub outsourcing. The scope of all cooperations is complement our portfolio. Combined with our
flexible over time, both geographically and in global network, it provides us with distinct ■ Check-in and Gate
terms of the services offered. This proves to be service and cost advantages. We strive for client ■ Passenger Mobility
an key selling point for Swissport. partnerships that enable us to move from the ■ Lounge Hospitality
provision of selected services to broader service ■ Executive Aviation
packages or even integrated hub management – ■ Security Services
as we have successfully established with several ■ Lost & Found
leading airlines.

In 2019, Swissport accelerated the expansion of RAMP HANDLING

its airport lounge business, which operates under
the Aspire brand. New lounges opened at London ■ Baggage Services
Gatwick and at Edinburgh airports in the UK ■ De-Icing
and at Eindhoven airport in the Netherlands. Perth ■ Fueling
is to become Aspire’s first lounge in Australia. ■ Moving of Aircraft
At the end of 2019, Aspire managed 48 lounges ■ Central Load Control
at over 30 airports in 13 countries. ■ Aircraft Cleaning
 OBJECTIVES & STRATEGY 31

AIR CARGO HANDLING Swissport also benefits from direct cost savings.
Swissport Brussels piloted the deployment of
Our air cargo business accounts for roughly 20 Cargo kiosks.
percent of our revenue. We handle everything
from general cargo to specialist shipments like Swissport has been using “Cargospot,” a tailored
high-value or temperature sensitive products. cargo handling system for more than 15 years.
Cargospot enables us to handle any carrier with
Swissport keeps adding facilities where it sees our own system. It allows Swissport to optimize
opportunities for profitable growth. The ware­ its cost base and increase its flexibility towards
house infrastructure at Brussels’s Zaventem airline customers.
Airport is nearing completion of a multi-million
euros refurbishment and expansion. In October In 2019, Swissport handled 4.6 million tons of air
2019, the first part of the new cargo complex, cargo. By the end of the year, the company was
a state-of-the-art Swissport Pharma Center, operating 115 cargo warehouses at airports
was successfully put into operation. Major around the world. 13 Swissport warehouse facili­
expansion projects or market entries are also ties were certified under the CEIV Pharma
underway in Frankfurt, Germany, and in standard or by the British MHRA (Medicines and
Melbourne, Australia, where Swissport plans to Healthcare products Regulatory Agency) at
start its first Australian cargo operation. the end of 2019.
In 2016, we had opened a new warehouse in
Ghana, followed in 2017 by Chicago O’Hare.
SERVICES
We also invest in technology and automation at
existing warehouses. Self-service cargo kiosks ■ General & Special Cargo Handling
are one such example. The kiosks enable truck ■ Temperature-Controlled Handling
drivers to skip queues at the counter during such as pharmaceuticals
peak-hours and bypass the manual processing ■ Hub Handling
of paperwork, saving them time that is sometimes ■ Express Services
critical to get a shipment on an earlier flight. ■ Forwarder Handling
 2
32 OBJECTIVES & STRATEGY Company Profile 2019 Swissport International AG

COMPETITIVE COST BASE

In a market with intense global competition and low margins, it is
essential to keep costs under control to generate sufficient free
cash flow to finance investments and profitable growth.

In recent years, Swissport has developed impres­ On the regional level, January 2019 saw the application consolidation and create the foun­
sively and profitably through a combination of introduction of a new structure with three instead dation for a data-driven business operating model.
organic growth and inorganic activity. We take of formerly nine regions. With EMEA (Europe,
our strategic deci­sions with a strong focus on Middle East & Africa), Americas and Asia-Pacific, Swissport has also made good progress in rolling
customer service. At the same time, we are support functions, formerly scattered across local out a standard enterprise resource planning
relentlessly striving to reduce our costs, as organizations, are now concentrated on the (ERP) system within our global Finance organi­
competition is intense, and margins are low. regional level. zation. Currently, over 80 percent of the
Group’s revenue is handled through one ERP,
In the autumn of 2019, in light of softening serving as the backbone for all feeder systems
ORGANIZATIONAL DEVELOPMENT market conditions and trading deviations and processes. Our focus remains on finance
compared to budget, Swissport identified 250 process standardization, automation and centrali­
Swissport has implemented structural adjust­ overhead positions to be eliminated. This zation to improve our cost position and further
ments at all levels of the organization. Starting included positions at the head office, which will support our local finance teams in their role as
with Swissport2020 in 2018, we introduced focus even more on support services creating business partners.
global standard operating structures on the value through global alignment and governance.
local level. In addition to improved efficiency and These measures allowed us to start 2020 with In the third quarter of 2019, Swissport introduced
an enhanced service delivery, the program is a cost base that was 20 million euros lower. a new procurement structure featuring global
expected to deliver some 20 million euros of category management, a shared project tracker
recurrent annual savings. It will conclude at the tool and selected agreed suppliers. This will
end of 2020 after delivering its first full-year IT AND FINANCE TRANSFORMATION allow Swissport procurement teams and the
contribution. Going forward, we will take stan­ supply chain to increase their response time and
dardization a step further by deve­loping a truly IT transformation remains a focus as we work to to better support our operations and customer
consistent way of working, which fully embraces increase IT performance and security. We have service delivery. Beyond en­hancing our reaction
process digitalization and allows us to take been preparing to embark on a cloud journey as time, the focus of the new procurement structure
advantage of Swissport’s global scale, in other from 2021. Critical workloads and applications is to protect our cash and improve our results.
words to enhance the Swissport Formula. Our will be migrated to the cloud to reduce cost and It will reinforce our actions on compliance and
focus will be to better support our frontline prepare for a data-driven strategy. Standardi­ safety all along our supply chain around the globe.
colleagues in delivering material benefits for our zation of core business and support services
customers. across Swissport is expected to result in
2
Swissport International AG Company Profile 2019 OBJECTIVES & STRATEGY 33

“Efficient staff resource

management is vital to creating
a competitive cost base.“
Artemis Papanika – Head of Planning and
Performance Central and Eastern Europe

ADVANCED RESOURCE PLANNING

Our people are the key asset for a superior service

delivery. At the same time, with 64,000 staff on
our payroll at the end of 2019, personnel costs are
our biggest cost element. Therefore, efficient
staff resource management is vital and a constant
focus. At Swissport we have been supporting
mid-sized airports with technology since 2018.
By digitalizing our staff and GSE allocation
processes, we are able to manage operational
resources more efficiently by optimizing
productivity and reducing over­time while never
compromising safety. We strive to meet the
needs of all business lines across our network
and are driving the development of this tech­
nology and our digital transformation.
 3
34 OBJECTIVES & STRATEGY Company Profile 2019 Swissport International AG

SAFE AND INDUSTRY-LEADING OPERATIONS

Around 64,000 dedicated Swissport employees strive to fulfill our
clients’ highest expectations – day in and day out. Above all stands our
unwaivering commitment to a safety-first culture.

A POSITIVE SAFETY TREND SAFETY CULTURE AND LEADERSHIP Swissport pursues a “Just Culture” philosophy,
meaning that the company requests fully open
Swissport aims to be the recognized global Beyond favorable numbers, we have been working reporting of unsafe acts, conditions, incidents
sector leader in health and safety. That is why on a cultural leadership transformation with and accidents. Reports on such events are
we are working relentlessly towards our goal respect to workplace safety. Swissport has a collected and analyzed continuously to prevent
of zero accidents, zero work-related injuries and dedicated team of experts who focus on “Quality, similar incidents. While team leaders, managers
zero illnesses. We are aware our goals are Health, Safety and Environment” (QHSE). or HR managers are the primary reporting
ambitious, but they keep us focused and drive However, safety and other aspects of QHSE must channels, employees have the option to report
continuous improvement. not be delegated. While the overall account­ incidents via our external “SpeakUp” hotline,
ability ultimately rests with the Board of Directors introduced in 2019. SpeakUp includes an online
And our efforts are paying off. In 2019, the “lost and the Group Executive Management, utmost and telephone service, enabling employees to
time injuries frequency rate” (LTIFR), which is a attention and focus by every manager, every file reports in full confidentiality and
key performance indicator (KPI) measuring the team leader and every frontline worker is anonymously.
number of injuries leading to workplace absences, required in daily service delivery activities.
was 29 percent below the 2015 level. This is a
significant improvement over 2018, when the Thanks to our Safety and Health Improvement SAFETY INITIATIVES AND INDUSTRY
KPI improved by 19 percent versus 2015. Aircraft Program (SHIP) we were able to establish an STANDARDS
damages per one thousand turns, another effective incident reporting culture. Today, our
safety KPI, also improved. In 2019, it was down staff and manage­ment are aware that they all Swissport’s corporate head office has been ISAGO
20 percent from 2015 after 19 percent in 2018. play an active role in mastering the daily (IATA Safety Audit for Ground Operations)
We are encouraged by the progress but will challenge of fulfilling high client expectations registered since 2010 and by the end of 2019,
have to intensify our efforts beyond 2020 to while always putting safety first. There is zero 19 locations across its global network were
reach our goal of a 50 percent reduction versus tolerance when it comes to any shortcuts in also ISAGO-registered.
2015 for both KPIs. procedures.
3
Swissport International AG Company Profile 2019

“Safety cannot be delegated. It is

everybody’s responsibility to adhere
to safety measures and to support
others in doing so.“
Alexandre Bolay – Head of Global QHSE

Swissport has developed its own integrated DIGITIZATION AND TECHNOLOGY

management system, which conforms to current
industry standards including the international Continuous innovation has been a catalyst for
quality management norm ISO 9001:2015 as well enhanced service delivery and greater efficiency.
as the sector-specific IATA Ground Operations It ensures that we maintain our competitive
Manual (IGOM) and the ISAGO standard. By edge and our position as the industry’s partner
aligning Swissport’s Management System with of choice.
ISAGO and IGOM standards all locations that
have implemented this management approach Standard digital applications, which have been
automatically became ISAGO-compliant. around for some time, include frontline self-
service applications, such as kiosks, web, mobile
Swissport also invests in hands-on initiatives. check-in combined with bag-drop services. We
Together with Auxivo, a spin-off of ETH, the took self-service a step further at Swissport by
Swiss Federal Institute of Technology, we have introducing kiosks at selected cargo warehouses
developed and tested operational support to speed up the delivery of shipments at
gear for employees in physically demanding jobs. trucking gates and their transfer to the aircraft.
The “LiftSuit” is a wearable exoskeleton that The use of technology and digitization, such
helps prevent musculoskeletal injuries from as cloud-based platforms with real-time data
baggage handling. At the IATA Ground Handling reporting across our operations, helps enhance
Conference in Madrid, Swissport was awarded our performance and facilitates improved
with the “Innovator Award 2019” for this inno­ tracking and tracing. Furthermore, we are running
vation. In fall 2020, following further im­ pilots with advanced resource planning soft­
provements, the LiftSuit is scheduled to be intro­ ware, which have delivered promising results.
duced for long-term testing at the airports in
Basel and Zurich, Switzerland, with the aim of
improving the wearing comfort of the suit.
36 OBJECTIVES & STRATEGY Company Profile 2019 Swissport International AG

GLOBAL CONSISTENCY
Consistency in the delivery of our services is a key success factor for
Swissport. We can only realize our full potential through rigorous
standardization. The Swissport Formula helps us achieve this.

Swissport provides aviation services at some 300 At Swissport we never compromise on health,
airports on six continents, and our aspirations safety, security or the environment. They are
are the same around the globe. With our commit­ fundamental principles on which the Swissport
ment to reliability, dedication and innovation, Formula is based and that we stand for. We
we strive to provide our customers with consistent, measure our performance against the expec­
high-quality solutions. tations of our customers and our own goals.
This include security, service quality, process
efficiency as well as environmental, commercial
THE SWISSPORT FORMULA and financial aspects. We also strive to con­
tinu­ously improve as an employer, a business
Consistency is key: That is why the Swissport partner and in terms of our cost base.
Formula is “The Way We Work.” More than ten
years after the Formula’s inception, its prin­
“Consistency is key: That is
Despite the Swissport Formula being solidly
ciples still drive our success. They define the anchored in our corporate DNA, maintaining
global operational and organizational consistency in processes and structures demands why the Swissport Formula
standards our staff comply with. To deliver on constant effort. This is true for any large orga­ni­
these standards, we train our employees at the zation and it rings even more true in organi­ is ‘The Way We Work ’.“
highest level and offer attractive career paths zations expanding at the rate Swissport has been
and progression. This is recognized by over 20 growing its business. In just under 25 years since Matthias Hüttner – Head of Global Operations
airlines, airports or authorities that accept the company’s foundation in 1996, Swissport
Swissport training material as being equal to, has evolved from a local player with three
or of higher quality than their own. locations in Switzerland into a global leader
active across six continents.
Swissport International AG Company Profile 2019 OBJECTIVES & STRATEGY 37

SWISSPORT2020 We continue to work on the realization of cost

savings beyond Swissport2020. The variance in
Thanks to Swissport’s rapid growth, many the number of employees required to deliver
structures and processes have remained local. certain service volumes, which we still observe
While our service quality may still fulfill the across the organization, cannot be explained by
expectations of our customers, irrespective of customer requirements, local regulation and
exact process consistency, our inconsistent infrastructure constraints alone. Efficiency gaps
structures and processes make steering the make it challenging to implement a global
business more complicated. Varying operational pricing strategy. We are committed to continue
or com­mercial processes also make client working on this to increase our commercial
interactions more complex. We know that our performance, and ultimately to improve our
larger clients expect global solutions for their results and our ability to invest.
global needs. Therefore, we continue to focus on
bringing global consistency to the next level. Last, but not least, we are working on standard
job roles to reduce the complexity of our training
Swissport2020 has contributed to remedy these and improve staff qualification. This will also
issues. It has introduced global standard opera­ support our efforts to compete for talent and
ting structures and strengthened our ability to improves the flexibility of our staff when switching
serve our customers with a consistent service between locations.
according to the principles of our Swissport
Formula. The program also increased our effi­cien­cy
and is expected to deliver some 20 million euros
of recurrent annual cost savings. Swissport2020
launched in 2018 and will formally conclude at
the end of 2020.
 5
38 OBJECTIVES & STRATEGY
RUBRIK Company Profile 2019 Swissport International AG

SUSTAINABLE STAKEHOLDER RELATIONS

When airlines outsource, they entrust us with mission-critical
services, and they rely on our employees to meet their standards.
Mutual trust and open dialogue are crucial for the success of such
partnerships.

OPEN DIALOGUE our airline clients, mutual trust and open dia­ have been enhanced. Among the criteria that
logue are crucial for positive long-term relation­ were rated, Swissport customers are most
Strong and resilient relationships with key ships. Sustainable customer and stake­holder satisfied with the relationship with their primary
stakeholders are essential in any service busi­ relations are therefore key to our success. contacts and their level of professionalism.
ness. This particularly rings true in the aviation
services business. When outsourcing mission- We also listen closely to what our customers
critical services, our customers place their have to say and carefully analyze their feedback.
success in our hands. This fills us with a strong Our latest customer survey was carried out in
sense of responsibility. In passenger services, early 2020. It covered topics such as service
our employees are often the first faces our quality, client relationships and the perceived
clients' customers see. professionalism of our staff. The annual survey
results serve as a lever for continuous improve­
With over 3,700 client contracts, Swissport ment, allowing us to focus on aspects creating
currently services some 850 corporate clients. added internal and external value. Of the more
In 2019, our employees served over 265 million than 250 participants who answered our questions,
airline passengers in face-to-face interactions, over 30 percent of the customers surveyed
often in collaboration with third-party providers. believe that Swissport has improved its services,
With so many passenger contacts on behalf of while 40 percent think that customer relations

“With so many passenger contacts on

behalf of our airline clients, mutual trust
and an open dialogue are crucial for
positive long-term partnership.“
Steen Pedersen – Head of Global Commercial
Swissport International AG Company Profile 2019 RUBRIK 39

FLEXIBLE COOPERATION MODELS

To benefit from lower operating costs and

specialist expertise, airlines around the globe
continue to turn to outsourcing for their ground
services, even at their home base airports.
Swissport clients can select any combination of
services, ranging from specific services to a full
outsourcing of passenger services, ramp handling
as well as cargo handling. With its broad service
portfolio, Swissport offers clients a “one-stop
shop” in service integration, should they so desire.
Our commitment to sustainable stake­holder
relations helps us build longstanding partner­
ships with airport operators and airlines alike.

In addition to Swissport’s presence at 300

airports on six continents, having the industry’s
most complete aviation service portfolio is one
of our key competitive advantages. We continue
to selectively grow our service offering across
our network to provide an even more complete
geographic coverage and a broader portfolio of
services at each of the airports we serve. We are
currently preparing to launch cargo operations
in Melbourne and Sydney and will also enter the
Australian market with our Aspire Airport
Lounges, leveraging our recent expansion into
Australia and New Zealand for lateral growth.

By signing framework agreements airline custom­

ers can secure general terms for the delivery
of a range of ground handling and cargo services
that apply whenever they expand to new
locations where Swissport already offers its
services. Such agreements can reduce the
complexity of client relationships and allow for
more flexible and swift service adjustments.
 6
40 OBJECTIVES & STRATEGY
RUBRIK Company Profile 2019 Swissport International AG

PRICING DISCIPLINE AND COMMERCIAL GOVERNANCE

The focus on sustainable value creation in our business decisions contributes to
Swissport’s reliability as a business partner. State-of-the-art commercial systems
support us in making the right choices, together with our airline customers.

PRICING DISCIPLINE offering. This is ultimately to the benefit of our This new state-of-the-art solution supports our
customers who know they can count on employees with a host of commercial appli­
We apply our sustainable business principles, as Swissport and plan on us being a reliable partner cations that ensure we maintain a disciplined
laid out in our Swissport Formula, to all our stake­ for the long term. approach to pricing, within a robust gover­
holders, including – of course – our clients. As nance framework. From a strategic standpoint,
a reliable airline partner, we want to deliver as it delivers complete transparency for senior
promised and therefore, we are flexible when COMMERCIAL GOVERNANCE management to make decisions on commercial
participating in public tenders, but responsible matters and direct the business in a more
and disciplined in our pricing. With Swissport’s The Commercial Steering Committee is a govern­ effective and efficient way.
competitive cost base, coupled with the quality ing body that assesses, reviews, and makes
and consistency of our service delivery, we enter recommendations on how the commer­cial teams In the markets, Salesforce allows our sales mana­
public tenders with confidence and ambition. should manage and negotiate business cases gers and our key account managers to access
However, we do not compete under terms that to maximize our financial and operational the latest information available through real-
do not make sense to us from an economic per­ performance whilst minimizing risk. time reporting dashboards in a cloud-based
spective or that cannot be maintained over the system. This new, sophisticated data and infor­
long term. This underlines our firm commit­ment In January 2018, we successfully started the roll­ mation sharing platform enables our front-line
to sustainable stakeholder and client relations, out of Salesforce, our new commercial manage­ sales managers to engage with our clients in a
which is based on a deep under­standing of the ment tool, bringing Swissport’s commercial well-informed and consistent manner to deliver
business and a detailed global costing template. steering to our exacting standards as a leading the right solutions.
global operator. The tool was set up over a ­six-
Just as we focus on value creation in new agree­ month period, drawing on the experiences and The adoption of the tool across Swissport’s global
ments, we may seek to apply corrective measures business requirements expressed by our work­ operations is progressing according to plan.
to existing contracts in open and transparent force to ensure that the resulting solution was The number of active users of the Salesforce tool
consultations with our customers, should market fit for purpose. has increased from 200 to 300 during 2019.
con­ditions or the operating environment change. Going forward, it will support improved pricing
Our disciplined commercial approach contributes discipline and commercial governance at
to the stability of our network and our service Swissport.
Swissport International AG Company Profile 2019 OBJECTIVES & STRATEGY
RUBRIK 41

“We are convinced that our

focus on value creation in our
business decisions increases
the stability of our network
and is to the benefit of our
clients as well.“
Nadia Kaddouri –
Head of Finance EMEA
42 RUBRIK
SWISSPORT AT A GLANCE Company Profile 2019 Swissport International AG

3 CORPORATE
SUSTAINABILITY
Swissport International AG Company Profile 2019 RUBRIK 43
44 RUBRIK Company Profile 2019 Swissport International AG
Swissport International AG Company Profile 2019 CORPORATE SUSTAINABILITY
RUBRIK 45

CORPORATE SUSTAINABILITY
COMMITTED TO RESPONSIBLE BUSINESS
At Swissport, sustainability means constantly improving in the
interest of our stakeholders. We aim at keeping the environment
safe, our employees healthy and our communities prosperous.

STAKEHOLDER RELATIONS AND In addition, Swissport conducted a materiality supply chain. Using risk management and
MATERIAL TOPICS analysis for the 2020 Sustainability Report to regulatory compliance solutions, we are able to
identify our material sustainability topics. The screen poten­tial suppliers regarding human
It is our goal to be a reliable, professional and insights gained will serve as a basis for the rights issues, environmental criteria or legal
recognized partner for all our stakeholders – further alignment of our strategy with stake­ compliance prior to engaging with them. We
internal and external. We also listen closely to holder expectations. also carry out additional investigation proce­
what our customers have to say and carefully dures or audits to ensure that potential
analyze their feedback. The annual customer suppliers comply with Swissport’s own high
survey results provide levers for con­tinuous standards and ethics.
improvement, allowing us to focus on aspects
that create added internal and external value. You can read the full version of As a signatory to the UN Global Compact,
Of the over 250 participants who answered our our Sustainability Report here Swissport is committed to upholding the highest
questions on sustainability, 53.9% believe that human rights standards and combatting all
Swissport is on the right track, with 19.9% agree­ forms of human rights violations. Through various
ing that we are leading in some areas. However, HUMAN RIGHTS AND LABOR policy and certification stipulations, we require
21.7% believe that there is still a lot to be done. PRINCIPLES our suppliers to respect these human rights, to
These insights motivate us on all levels of the fully comply with the UN Declaration of Human
company to intensify our efforts for continuous The protection of human rights in a business en­ Rights and the International Labor Organization’s
improvement. The survey also showed that vironment has increasingly become the focus (ILO) Core Conventions, and to commit to non-
sustainability strongly correlates with Swissport’s of public attention. The intersection of business complicity in any human rights abuses.
overall satisfaction rate. and human rights is primarily in the companies’
46 CORPORATE SUSTAINABILITY
RUBRIK Company Profile 2019 Swissport International AG

“People are the foundation

of our company’s success.“

Andreas Hugener – Chief HR Officer

OPERATIONAL RISK MANAGEMENT for 24,474 reported events. The re­cognition

scheme helps build a sustainable safety culture,
Our high standards for Quality, Health, Safety, reduces the cost of accidents, improves customer
and Environmental Management have been satisfaction and provides a safer working You can read the full version
aligned with international industry standards environment for our frontline workers. of our Code of Conduct here
(e.g. ISAGO, IGOM and ICAO standards).
They provide a framework for a safe, efficient CODE OF CONDUCT We urge our employees to report all violations of
and sustainable service delivery, which meets the Swissport Code of Conduct. ”SpeakUp” is an
and exceeds the expectations of our customers At Swissport, we foster corporate behavior based external hotline which was introduced at Swissport
and other stake­holders. To ensure compliance on honesty, integrity and respect for the law. in 2019, and which enables all employees to
with those standards across the Swissport net- Overall responsibility for issues regarding fair report suspected violations, including reporting
work, we have implemented an integrated competition, anti-corruption and human rights individuals who are believed to have violated, or
management system at our locations worldwide. lies with the CEO and the General Counsel & who are suspected of preparing to violate, the
Company Secretary; the responsibility is further Code of Conduct. SpeakUp includes both an
Real-time information is available to manage­ divided between regional managers within the online and telephone service that enables employ­
ment via the Safety Reporting Management company. ees to report compliance concerns confidentially
Tool (SMT). It helps us to identify, analyze and and anonymously. The hotline operates 24 hours
visualize incident trends and risks and take The company’s ethical and behavioral principles per day, 7 days per week in more than 20
corrective action to mitigate or reduce these apply to our staff and to those acting on our languages.
risks if and when it is required. behalf. These principles are explained in our
Code of Conduct, which is supplemented by
In 2019, and across 98% of our locations, we more detailed standards, directives and guide­
identified a total of 71,878 unsafe conditions and lines. The Code of Conduct is part of an
unsafe acts, which were prevented and re­ported induction package that is signed by every new
in accordance with our just culture. To recognize employee. It was last updated in March 2019
colleagues who have gone above and beyond and specifically states a zero-tolerance policy
in their duties, Swissport promotes immediate regarding any legal or ethical violations,
recognition of a positive approach to health and including any forms of discrimination.
safety. Last year, employees received recognition
Swissport International AG Company Profile 2019 RUBRIK 47

EMPLOYEES AND EQUAL

OPPORTUNITY

People are the key asset at Swissport. The com­

mitment of our employees is the foundation of
our success. That is why Swissport promotes a
working environment that allows our employees
to unlock their full potential. We support this by
fostering cultural diversity and respecting equal
opportunity, in addition to encouraging positive
employee relations. As of 31 December 2019,
Swissport had 64, 189 employees (2018: 65,670).
33.9% of our workforce are women and 66.1% are
men. While other genders are not systematic­ally
recorded, they are fully respected. 88.6% of our
employees have permanent contracts.

Americas 46.2 %
2019 Europe, Middle East
& Africa 45.1 %
Asia-Pacific 8.7 %
48 CORPORATE SUSTAINABILITY
RUBRIK Company Profile 2019 Swissport International AG

“Swissport’s goal is to increase the share of electric

vehicles to at least 50 % of our global motor­ized
fleet by 2025.“
Steve Cannon – Head of Global Fleet Management

TRAINING AND QUALIFICATION

At Swissport we intend to set standards of oper­a­

tional excellence in airport ground services and
air cargo handling. We provide a wide range of
training to support our employees in realizing
their full potential. By continuously investing in
staff qualifications, we are able to do an even
better job fulfilling the expectations of our key
clients, such as reliability, service quality, stan­
dardization and consistency. In terms of QHSE,
Swissport has been strengthening its regional
setup by providing training at the local level.

Established processes for talent management

support individual skills and personal growth.
Our Global Training Unit develops and implements
technical training standards, while Swissport’s
Global Learning & Development unit is responsible
for processes and standards in performance
assessment, talent management and leadership
development. We are convinced that global
standards contribute to transparency and em­
ployee motivation and support our staff in
adhering to corporate guidelines.
Swissport International AG Company Profile 2019 CORPORATE SUSTAINABILITY
RUBRIK 49

COMPENSATION AND EQUAL ENVIRONMENTAL MANAGEMENT FUEL EFFICIENCY AND EMISSIONS

OPPORTUNITIES AND IMPACT
The operation of GSE is a major ground activity
Swissport strives to provide working conditions We promote environmental responsibility in our at Swissport. For years, we’ve been deploying
that meet the needs of our employees, including services and among our employees, and we electrically powered and hybrid GSE (eGSE)
adequate remuneration, flexible working time encourage the development and application of wherever possible. eGSE not only decreases
models, development opportunities and retention environmentally conscious technologies across exhaust emissions and reduces our carbon foot-
measures. our business. Environmental concerns are an print, it also leads to significant fuel cost
integral part of our planning and decision- savings. By the end of 2019, 15.3% of our GSE
Our compensation strategy is in line with market making processes and we commit sufficient equipment was made up of environmentally
practices and reflects our aim to be fair and resources to implement effective environmental friendly vehicles. Our goal is to increase the share
competitive, irrespective of gender and any other programs. of electric vehicles to at least 50% of our global
categories protected by law or our ethical prin­ motor­ized fleet by 2025.
ciples. Compensation is based on the nature and Environmental management is part of our
responsibilities of the role at hand and the re­ Quality, Health, Safety and Environment In addition to increasing the share of eGSE,
quired skill set, along with the qualifications and (QHSE) management system. As part of our Swissport is exploring various ways of improving
relevant ex­perience an individual brings to their commitment to improve our environmental the environmental performance of its equip­
specific role. programs and to ensure compliance with ISO ment. To allow for our GSE to be used as effi­
14001:2015, we are currently refining our ciently as possible, we plan to install telematic
environmental management system. We also systems. This will help us to “right-size” our fleet,
COLLABORATIVE LABOR RELATIONS intend to expand it to cover all business areas. maximize utilization and reduce engine idle
Completion is scheduled for 2022. Having the running times (engines running while equipment
Swissport employs a large and diverse global new system is in place will enable us to improve is not in use). This can be achieved with the help
work­force operating in many countries under a our internal and external reporting and sig­ of alerts notifying equipment managers at pre­
wide variety of jurisdictions. And by the nature nificantly increase our contribution to environ­ defined times of engines that are running
of our business, we are active in a complex and mental management at the airports we serve. unnecessarily.
dynamic operating environment. It is para­
mount that we meet all legal obligations. With There are three main drivers for Swissport’s
this in mind, we strive to maintain open and environmental impact: operational, managerial
stable working relationships with our employees and behavioral. Our vast fleet of Ground
and their representative bodies, including Support Equipment (GSE) offers the greatest
workers’ councils and trade unions. potential and most effective levers for improve­
ment. This is why we have made this the focus
of our environmental protection efforts.
50 Company Profile 2019 Swissport International AG

CREDITS CONTACT

Published by Swissport International AG

Swissport International AG
Christoph Meier Christoph Meier
Head of Group Communications Head of Group Communications
P.O. Box 5
Editorial team 8058 Zurich-Airport
Christoph Meier, Editor-in-chief Switzerland
Maria Künzi, Jingchao Zhu
+41 43 815 00 22
Concept and design group.communications@swissport.com
DennerleinBrands GmbH, Frankfurt am Main, Germany

Photos
Oliver Rösler / oro photography, Rödermark, Germany
Rachida Maroukisse / Air Cargo Belgium, Brussels, Belgium
Stephen Kariuki Kamau / Light in Captivity, Nairobi, Kenya
Mitsushige Kida / C4.inc, Osaka, Japan

Notes
The terms Swissport International AG, Swissport, Swissport Group
and the Group are used synonymously in this report, unless other­
wise explicitly stipulated. The use of any content (text, image or video),
even in excerpts, requires the written permission of the publisher
and includes the obligation to cite Swissport International AG as the
source. We also ask that a specimen copy be sent to us.

The editorial deadline was 30 April 2020.

swissport.com