Københavns Lufthavne A/S : Read the chairman's Oral Report here (PDF).

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MANUS 2 / CHAIRMAN'S REPORT	AGM 26 APRIL 2021

Thank you, Christian.
This year, my report will obviously be dominated by
coronavirus - or rather the impact that the COVID-
19 pandemic has had on CPH.	6
CPH - and the whole of the aviation industry - has
probably been hit harder by the pandemic than any
other sector.
A serious and unforeseen crisis of this kind makes
great demands of our crisis management and
adaptability.
On the part of the Board, it has been important that
in this extreme situation CPH has strived to act in a
socially responsible manner - towards passengers at
the airport, employees, our owners, the authorities,
the airlines, our neighbours and other stakeholders.

Part of that responsibility is that, hand in hand with the acute crisis management, it is important:

• to look forward
• to prepare the journey towards the sustainable airport of the future
• to seek answers to climate challenges
• to ensure that CPH maintains and strengthens its position as northern Europe's most important hub.

These are some of the themes I want to address in this report.

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RESULTS FOR THE YEAR

Let me start with the results for the year, which were the worst since the Second World War. The number of passengers plummeted from 30.3 to 7.5 million - the lowest since 1970.

Revenue fell by more than 70%. This meant that a pre-tax profit of DKK 1.3 billion in 2019 turned into a loss of 828 million Danish kroner in 2020.

It should be noted that the figure would have been 348 million kroner worse if we had not received assistance from the government in the form of various compensation packages. We would like to thank the government for that.

No. 1 in any textbook on crisis management is to secure liquidity so that the company can survive. So in spring 2020 we immediately entered into discussions with our lenders. We managed to secure credit facilities of 6 billion kroner. We would like to thank the lenders for their cooperation.

At the same time, it was vital for us to reduce both costs and investments. But as socially critical infrastructure and Denmark's gateway to the world, we could not simply shut down and wait for better times. We had to stay open for the very limited passenger traffic that remained, and not least for important air cargo. This has meant that the necessary expenditure has far exceeded revenue.

Without compromising on security and safety, we therefore made considerable reductions in operating costs totalling 200 million kroner. At the same time, we used the crisis to simplify and identify new, effective solutions in many areas at CPH.

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All planned investments were reviewed and reduced by around 800 million kroner. More about that shortly.

And unfortunately we could not avoid making the organisation smaller and had to lay off around 800 of our 2,600 employees in order to adapt to the new reality. With fewer positions, we have reduced annual operating costs by around 500 million kroner.

These have not been easy decisions. Many lives and many families have been affected. Let me, on behalf of the Board, say a sincere thank you to both past and present employees for their close and trusting cooperation during these difficult times.

Similarly, a big thank you to our majority shareholders, who have shown great confidence in us. Thank you for that.

THE CORONA PANDEMIC

Now let's take a look at the terminals, which have been rather empty for most of the year. Fear of catching COVID-19, confusing travel restrictions and quarantine rules kept 75% of passengers at home in 2020.

I think we have all had to admit that the world is more fragile and uncertain than we thought. So safety and confidence have been watchwords for the passenger effort in 2020.

With the "Let's travel with care" initiative, we introduced to the terminals everything from face masks, 500 hand sanitiser dispensers, plexiglas, extra cleaning and distance markings to extra security and service personnel to guide passengers.

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We closed 40% of the terminal area and combined operations to give passengers a better experience - and the airlines, ground handlers and authorities better working conditions.

In the midst of the crisis, we also succeeded in implementing a major organisational change and targeted our work according to a simplified strategy with 5 must-win-battles:

• To ensure a safe, comfortable and positive travel experience for passengers
• To safeguard teamwork and motivation in the organisation
• To simplify working processes and reduce bureaucracy for the future
• To focus on lower expenditure and minimise costs
• To protect and develop our revenue streams

The employees have had to act quickly in an unpredictable reality of ever-changing travel and testing guidelines. They succeeded in doing this, which was an outstanding effort.

The new reality in 2021 is that all arriving passengers have to be tested - this is a huge challenge because the airport is simply not designed and dimensioned for this.

But in collaboration with the authorities, we are continually coming up with solutions - even though at times these are less than optimal for the passengers, airlines and ground handlers.

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AERONAUTICAL BUSINESS

Let me now talk a bit about the aeronautical business. After two normal months in January and February, overnight the airport went from full speed ahead to full stop when Denmark's borders closed on 14 March. This was and still is terrible for us.

Passenger numbers plummeted from 30.3 to 7.5 million - the lowest since 1970.

You can see a graphic on the screen of passenger numbers from 1925 to the present day.

The year's quietest day in 2020 was 9 April, with just 424 passengers. Certainly none of us would ever have imagined seeing that.

This meant that aeronautical revenue fell by 71% - from 2.4 billion kroner to just 695 million kroner.

During the year of coronavirus, from 14 March to December the number of daily arrivals and departures fell from 720 to 170, while the load factor, i.e. how many seats in the aircraft are occupied, fell to around 30% from the usual 80% or so.

The airlines, like airports all over the world, have been badly hit. The task in 2021 is that together we need to restart the route network.

In the first quarter of 2021, CPH agreed with the airlines to focus on the restart and adjust the agreement for the period 2019-2023 on the charges paid to use the airport.

The adjusted agreement addresses the unintended consequences that COVID-19 has had for the