Annual Report 2022
We are a global airport and travel retail group with business in 15 countries around the world. daa’s principal activities include operating and managing Dublin and Cork airports, global airport retailing through our subsidiary Aer Rianta International (ARI), and international aviation operations, management and consultancy through daa International (daaI).
The company is state-owned and headquartered at Dublin Airport.
Our vision is to be airport industry leaders, delivering excellence
in a sustainable future.
Our purpose is to enable business, and connect lives, across the world.
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What we do
We own and manage Dublin and Cork airports in Ireland, and manage Terminal 5 at King Khalid International Airport in Riyadh, King Abdulaziz International Airport in Jeddah and the Red Sea International Airport, Saudi Arabia.
Through ARI, we own a 20% stake in Düsseldorf Airport and an 11% stake in Hermes Airports, which owns and operates Larnaca and Paphos airports in Cyprus.
daa International has clients in Australia, the Philippines and Saudi Arabia providing them with airport management, operations and maintenance consultancy.
1. Group operating costs include payroll and related costs, materials and services and government wage subsidy support.
Where We Operate
In 2022, daa continued to progress the published commitments set out in the Group’s ESG Strategy for 2021-2023.
We will continue to hire new talent throughout 2023 to complement our outstanding team of people who met every challenge put to them last year.
North Runway fulfils a key mandate set by the Irish Government’s National Aviation Policy, by enabling Dublin Airport to develop as an international hub for leading airlines and enhancing connectivity of Ireland’s island economy.
Chief Financial Officer's Review
The Group experienced a strong, consistent upturn in activity levels in 2022 and has seen an improvement in turnover, EBITDA and profit after tax for the year ended December 2022.
Group Chief Financial Officer
|Passenger numbers – Ireland (millions)
|Group operating costs1
|Group loss after tax – before exceptional & fair value movements
Exceptional items & fair value movements
Group loss after tax – after adjustments & fair value movements
|Net cash inflow from operating activities
1. Group operating costs include payroll and related costs, materials and services and Government wage subsidy support.
2. Group EBITDA comprises Group earnings before interest, tax, depreciation and amortisation before exceptional items from Group activities, excluding contributions from associated and joint venture undertaking.
1. Operating costs include payroll and related costs, materials
and services and government wage subsidy support.
2. Earnings before interest, tax, depreciation and amortisation
(before exceptional items)
• Enhance our Employee Value Proposition (EVP).
• Continue to develop daa as a great place to build a career.
• Transform how we deliver HR services.
• Ensure we have the right people at every level.
• Improve the ways we work together.
• Deliver the highest standards of safety and security.
• Grow passenger numbers at our Irish airports.
• Become a digital airport innovator.
• Diversify and grow our commercial revenues.
• Restore the highest operational standards for our passengers and customers.
• Develop the digital and data capabilities needed to enable the delivery of our plans.
• Invest €1.9 billion in capital development at Dublin Airport.
• Progress planning issues to facilitate long-term sustainable development.
• Strengthen our retail proposition.
• Deliver on, and successfully extend, our existing portfolio of contracts.
• Build on our recent successes to win new business.
• Deliver on our digital strategy.
• Deliver successfully on our core contracts, including our new contract in Jeddah.
• Leverage our recent successes to win further business across our key focus regions.
• Ensure a proactive resourcing model to support our success.
• Increase our focus on ESG (Environmental, Social and Governance).
• Accelerate our journey to net zero carbon emissions, net zero waste.
• Deliver the resourcing and investment we need to succeed.
• Maintain strong focus on our local communities and on human rights.
Our ESG Strategy
As a business that operates on both a national and international scale, we understand that our passengers and customers, our people and our local communities expect us to be a responsible business that strives to enhance our economic contribution in a sustainable and fair manner.
01 Environmental Sustainability
We understand the global environmental challenge; we have set clear and effective environmental sustainability targets and embedded them in our overall business strategy.
We are committed to working with all stakeholders to deliver our environmental goals and work towards a brighter future.
Our people are integral to delivering our purpose to enable business, and connect lives, across the world.
We are committed to creating a working environment for our colleagues that allows people to grow, develop and fulfil their potential.
We are committed to being a responsible and good neighbour; one that engages and listens.
For decades we have supported activities that enhance community spirit, provided resources to improve community wellbeing – and we are committed to doing this for decades more.
We are drivers of positive economic growth and a source of high-quality employment and we are committed to the development of the economies in which we operate. We also understand that we can positively influence our supply chains and enable initiatives which encourage sustainable business practices both internally and externally.
Our governance structure
daa is a commercial state company. The Group’s principal activities are set out in the Report of the Directors on page 82.
The Audit and Risk Committee’s principal responsibilities are to assist the Board in its oversight duties relating to internal control and risk management, financial reporting, external audit and internal audit. The remit of the Audit and Risk Committee extends across the Group including daa Finance plc, daa Operations Limited, Aer Rianta International cpt and daa International Limited.
The Culture, Security and Safety Committee’s principal responsibility is to monitor the integrity of the Company’s, health, safety and security systems at the Company’s airports, and to monitor and advise the Board on Company culture including staff wellbeing matters. The Company’s focus on culture includes safety and security, respecting each other, embracing diversity, living the Company values, and striving for excellence.
The Nomination and Remuneration Committee’s principal responsibilities are to determine the remuneration and other terms and conditions of employment of the CEO; determine the remuneration policy in relation to senior management and the wider workforce including performance-related pay and incentive schemes; review the ongoing appropriateness and relevance of remuneration policies and determine any structural changes required to such policies, including pension and severance scheme arrangements.
The Finance Committee’s principal responsibilities are to consider and advise the Board on the Group’s funding strategy and structure, debt and liquidity positions, and the Group’s five-year financial forecasts and financial plans; to oversee major financing, and to make recommendations to the Board on treasury policies, borrowing limits, financial risk levels, targeted credit rating and dividend policy.
The Strategic Infrastructure and Sustainability Committee’s principal responsibilities are to advise the Board on the medium and long-term infrastructural needs and the capital investment programmes for Dublin and Cork airports and to consider and advise the Board on sustainability legislation/regulations, strategic sustainability ambitions, sustainability and climate-related risks and opportunities, and all related matters designed to achieve the Company’s sustainability commitments and goals.
The Board has an effective Committee structure to assist in the discharge of its responsibilities.
|Appointed to Committee
|Marie Joyce, Chair
Dalton Philips resigned from the Committee on August 26, 2022. Kenny Jacobs was appointed to the Committee on February 27, 2023.
The role of the Finance Committee is primarily to review and consider major financings. As there were no major financings during 2022, there was no requirement for the Finance Committee to meet during the year.
|Appointed to Committee
|Basil Geoghegan, Chair
There were six scheduled meetings of the Nomination and Remuneration Committee in 2022 and the work of the Committee included oversight of remuneration arrangements and the process for the recruitment of the new Chief Executive Officer for the daa Group.
|Appointed to Committee
|Raymond Gammell, Chair
Joseph O’Sullivan resigned from the Committee on January 8, 2022 when his term of office expired. James Kelly and Des Mullally were appointed to the Committee on February 8, 2022.
There were eight scheduled meetings of the Culture, Security and Safety Committee in 2022. In fulfilling its role, the Committee reviews the organisational structures in place to give effect to daa’s safety and security compliance systems. It reviews and monitors performance metrics, receives incident reports and monitors the processes in place for training and communication of policies and procedures. The Committee also monitors and advises the Board on Company culture, including staff wellbeing matters.
|Appointed to Committee
|Basil Geoghegan, Chair
|Mark James Ryan
Mark James Ryan was appointed to the Committee on February 8, 2022. Dalton Philips resigned from the Committee on August 26, 2022. Kenny Jacobs was appointed to the Committee on February 27, 2023.
There were three scheduled meetings of the Strategic Infrastructure and Sustainability Committee in 2022, where the Committee considered capital investment plans, sustainability matters and other related issues.