Raport zrównoważonego rozwoju 2018 EN

2017

photo Krakรณw Airport

Sustainability Report

Sustainability Report

Sustainability Report

TABLE OF CONTENTS I. S tatement by the President of the Management Board

3

II. About the Company

4

General information

5

Form of ownership and organizational structure

8

Airport Rescue and Firefighting Service

60

First aid

61

Air incidents involving animals

62

Winter Services

64

VII. Environmental Protection

65

Natural Resource Inventory

67 67

Economic situation

13

Economic use of natural environment

Kraków Airport brand

15

Social responsibility strategy

16

Hazardous and non-hazardous waste management 68

III. P assenger Traffic and Air Operations at Kraków Airport 17 Airport catchment area

18

Statistics

19

Passenger profile

23

Animals travelling by air

25

IV. Infrastructure of Kraków Airport

26

Airside area

27

Terminal

29

Passenger facilities

33

Kraków Airport 2036

37

V. Relations with Stakeholders

39

Internet and social media

44

Airgate – magazine and blog

45

Airport information

46

Passenger and consumer satisfaction survey 47

Air quality

70

Noise management

72

Water and wastewater management

75

Greenery management

76

VIII. Kraków Airport Employees

77

Employment data

78

Student internship programme Need Help

81

Employee engagement

82

IX. Kraków Airport – a Responsible Neighbour

86

Supporting our Neighbours grant competition 88 We support culture

92

We support education

93

Kraków Airport Aviation Education Centre

94

We support innovation

95

X. About this Report

97

Kraków Airport Loyalty

50

Communication with local community

51

Cooperation with spotters

53

Tenant Handbook

54

XI. Calendar of Events 2017

102

55

XII. GRI-Contents Index

104

VI. Safety Regulatory compliance

56

Kraków Airport personnel training and exercises

58

Key aspect of reporting – Kraków Airport

100

Contact

101

Definitions 108

Statement by the President of the Management Board | 3

STATEMENT BY THE PRESIDENT OF THE MANAGEMENT BOARD that Kraków Airport faces is the implementation of projects outlined in the Master Plan for Kraków-Balice.

Over the next 20 years, Kraków Airport plans to invest about PLN 1 billion in infrastructure. The key project for our airport is to build a new runway.

We would like to present the second Kraków Airport Sustainability Report – a publication focusing on airport data and activities in 2017.

This report presents the management foundations, obtained results, future plans and social responsibility initiatives in the context of the implementation of the Company's business strategy.

Summarising 2017, we can say that it was a demanding year for Kraków Airport. For the first time in our history we handled more than 5 million passengers thus becoming one of the airports that handle more than 5 million passengers a year. This would not have been possible without the commitment of employees and the effective cooperation of numerous airport partners.

Long-term forecasts and plans are important in airport business to prepare adequate infrastructure for airlines and passengers. The challenge

G4-DMA, G4-1, G4-2, G4-13

Consistent implementation of the growth strategy in cooperation with stakeholders brings results. Efficient airport operation helps create local jobs, contributes to social commitment, supports innovative technological solutions and the economic development of Kraków and Małopolska.

Innovative and environmentally friendly solutions are part of Kraków Airport's development strategy. An example of such activity was the purchase of hybrid cars for air traffic coordinators which helped reduce greenhouse gases, noise emissions and fuel consumption. We also cooperate with Kraków Technology Park in the implementation of the KTP ScaleUp acceleration programme.

Dialogue-based cooperation is the key to economic, social and environmental balance. We are committed to the life of the local community; we hold information and consultation meetings with partners and local residents; we listen to the needs of the neighbourhood and customers.

Many innovations in terms of Kraków Airport social responsibility have

been developed in response to the voices of our stakeholders, including the new Close to Airport grant competition.

The airport's CSR activity is regularly noticed and awarded. Such recognition in the form of awards and commendations gives us a lot of joy, but mainly motivates us to do more.

On behalf of Kraków Airport I would like to thank you for your cooperation to date and your efforts to build a sustainable region. I encourage you to read the report and provide feedback in the form of your reflections about airport operation, our actions in the area of responsible business and the report itself. Your suggestions will be an inspiration for further actions to achieve our development goals.

Radosław Włoszek President of the Board for Kraków Airport

2017 Summary:

Sustainability Report

photo Sławomir Pawłowski

ABOUT THE COMPANY

photo Łukasz Polus EPKK Spotters

GENERAL INFORMATION

Kraków Airport is the largest regional airport in Poland. It is located in the south of the country, 11 km west of Kraków, at 241 m above sea level.

(further referred to as: MPL), whereas the 8 th Base of Military Transport Aviation is the military user.

310 ha – total airport area;

Kraków-Balice Airport (EPKK) is a military airport shared with civil aviation (entered in the national register of civil airports under No. 56). Its civil user is the company Międzynarodowy Port Lotniczy im.

Jana Pawła II Kraków-Balice sp. z o.o.

27.5 ha – airport area managed by Międzynarodowy Port Lotniczy im.

Jana Pawła II Kraków-Balice sp. z o.o.

The oldest documents pertaining to the airport in Balice date from 1938.

The beginning of the non-military activity of the airport in Kraków can be traced back to 1964 when the military granted the future civil airport operating entity access to an area of 10 ha, as well as the necessary permissions to use the relevant military facilities. On February 29 th 1964, the first landing of a passenger plane (PLL LOT) took place.

VISION AND MISSION The vision of Międzynarodowy Port Lotniczy im. Jana Pawła II KrakówBalice sp. z o.o. is to achieve the highest standards of services comparable to the standards implemented by major European airports.

GPS COORDINATES: N: 50° 4’21” E: 19° 48’21”

G4-3, G4-5, G4-56

The mission of Międzynarodowy Port Lotniczy im. Jana Pawła II KrakówBalice sp. z o.o. – the southern gateway of Poland – is to take the leader spot among European regional airports by doing its best to provide high-quality services, giving our clients the feeling of satisfaction, and moving towards the goal of great economic success.

Sustainability Report

COMPANY'S LINE OF BUSINESS The basic area of the Company's operations according to the Polish Classification of Business Activity (PKD 52.23.Z) is air transport support services. According to the Articles of Association, the Company's operations include expansion, modernisation and operation of Kraków Airport,

PRIZES AND AWARDS IN 2017 1/ P restigious international award for improved customer service ASQ Awards 2016 – awarded by Airport Council International for the first place in the category: Europe – Best Improvement by Region. The award was received in October 2017 during the 27th ACI World/Africa Annual General Assembly.

2/ N omination for World Routes Marketing Awards (in the category of airports handling from 4 to 20 million passengers). Awarded for effective marketing to support the development of the network of connections and cooperation with carriers.

3/ Kraków Airport was the only airport in Poland to make it to the List of Responsible Companies ranking published by Gazeta Prawna.

Ranked 9 th, Kraków Airport achieved the Crystal Level.

as well as any activities related to the air traffic of passengers and goods, including the operation of the international border crossing at the airport, promoting the city of Kraków and the region, facilitating the tourist traffic, and in a much broader sense – the performance of public tasks.

The Company renders airport-related services and non-aviation services, which include land leasing, rental

of rooms and advertising spaces, etc. The main investment project in the Master Plan for Kraków-Balice for 2016-2036 is the construction of a new runway.

4/ In the report Responsible Business in Poland. Good practices 2017.

11 practices of Kraków Airport were described in five categories:

5/ Golden Culture Supporter awarded by the Kraków Festival Office for many years of cooperation and commitment to the promotion of culture. Kraków Airport is a strategic partner of the Kraków Festival Office when it comes to the organisation and promotion of some of the most recognizable cultural events in Kraków, such as: Sacrum Profanum Festival, Misteria Paschalia, Film Music Festival, Opera Rara, Conrad Festival.

c orporate governance: Kraków Airport Sustainability Report for 2016; consultation and information meetings for local residents; social commitment and local community development: Supporting Our Neighbours grant competition, Need Help traineeship programme; Kraków Airport Aviation Education Centre; t raineeship: Support Volunteers competition; Kraków Airport Cool Library; Christmas Help; c onsumer issues: Kraków Airport Mobile Application; induction loops for passengers with hearing impairment

6/ Nomination for the 20 th Benefactor of the Year competition in the Social Project category.

7/ Two nominations for the title of Kraków Culture Patron 2016 in the Sponsor and Donor categories.

e nvironment: purchase of hybrid cars.

G4-DMA, G4-2, G4-4, G4-13

About the Company | 7

RESPONSIBILIT Y MAP – A BREAKDOWN OF TASKS AND RESPONSIBILITIES AT THE AIRPORT

STATE SERVICES:

KRAKÓW AIRPORT:

SUBSIDIARIES:

THIRD-PARTY ENTITIES:

Polish Air Navigation Services Agency (air traffic control); Police; Border Guard; Customs Service; Voivodeship Veterinary Inspectorate in Kraków; IMGW (Aerodrome Meteorological Station Kraków-Balice).

Coordination of activities of all services working at the airport; ensuring the safety of air operations and airport users; development, modernisation and operation of the infrastructure of Kraków Airport; security (Airport Security Service); Airport Rescue and Fire Service; Airport Information Services; the Lost-and-Found office; chapel; VIP & Business Services; airport tours; monitoring the condition of runway and taxiway; maintenance of the runway surface; placing aircraft on the apron; airport maintenance services; non-aviation services including: land leasing, rental of rooms and advertising spaces, maintenance of networks and IT systems.

MPL Services (local transport routes, parking services; observation deck-related services; catering and commercial services; collection of fees at the airport; transport of persons and luggage as Kraków Airport Taxi); Kraków Airport Hotel (hotel and catering services).

Airlines (flight offer); handling companies (check-in, aircraft ground servicing, de-icing, support for disabled persons and persons with reduced mobility (PRM), cargo handling, lost luggage); operational support (catering, aircraft maintenance, aviation fuel supply, falconer); shopping/service outlets at the airport (shops, restaurants, bars, car rental, commercial services, i.e. post office, bank); transport (private, municipal, railway); cleaning services; tourist information.

G4-2, G4-4, G4-9, G4-12

Sustainability Report

FORM OF OWNERSHIP AND ORGANISATIONAL STRUCTURE

Radosław Włoszek President of the Board

Mariusz Saługa Member of the Board

OWNERSHIP SUPERVISION

MANAGEMENT STRUC TURE

MPL MANAGEMENT BOARD TERM IN 2017:

The Company's share capital structure did not change in 2017.

The present shareholder structure is presented in the figure below

The authorities of the Company operating under the business name of Międzynarodowy Port Lotniczy im. Jana Pawła II Kraków-Balice sp. z o.o. (MPL) are: the Management Board, the Supervisory Board and the Meeting of Shareholders. The competences of each of these bodies are specified in the Partnership Agreement.

on 8.05.2017 the Supervisory Board commenced a qualification procedure for the positions of the President of the Board and Member of the Board responsible for investment projects;

76.19%

PP “Porty Lotnicze”

0.04%

Zabierzów Commune

22.73%

Małopolskie Voivodeship

from 1.01.2017 to 14.07.2017 the MPL Management Board comprised of two people: President Radosław Włoszek and the Member of the Board responsible for investment projects – Mariusz Saługa (appointed by the Supervisory Board in 2016);

1.04%

Kraków Municipality

on 26.05.2017, after the qualification procedure the Supervisory Board appointed Radosław Włoszek as the President of the Board, and Mariusz Saługa as the Member of the Board responsible for investment projects, whose term was from 15.07.2017 to 31.12.2017.

G4-3, G4-7, G4-17, G4-34

About the Company | 9

DIVISION OF RESPONSIBILITIES IN THE MANAGEMENT BOARD: President of the Board – Radosław Włoszek: supervises the Company Office, Finance, Sales, Security and Crisis Management and Airport Director. In addition, he supervises the OHS at MPL and the operation of services and MPL organisational units in terms of air operation safety and protection of classified information.

Member of the Board – Mariusz Saługa supervises the Infrastructure Development. In addition, he is the Head of the Militarised Unit.

In 2017, the Management Board, executing its corporate rights, adopted a total of 81 resolutions at 52 meetings of the Management Board, and 120 resolutions outside of the meetings of the Management Board. These resolutions concerned the business activity of MPL.

G4-7, G4-17, G4-34

During the time period covered by the report, i.e. from January 1, 2017 to December 31, 2017, the President of the Management Board issued 49 ordinances and 1 official business order.

Within the strategic goals of the Management Board for 2017, the Company risk management procedure was developed using the e-risk IT tool.

As part of the implementation of the procedure, general training in risk management, individual workshops with all Company departments, risk identification and first risk assessment with participation of external consultants took place in November and December 2017.

COMPANY ORGANISATIONAL STRUC TURE AS OF 31.12.2017 The rules of operation of the Company are set out in the Organisational Regulations of Międzynarodowy Port Lotniczy im. Jana Pawła II KrakówBalice sp. z o.o. The Regulations are available to all employees on MPL's

Intranet. The document describes the scope of activity of the organisational units of MPL reporting directly to the Management Board of the Company. The Organisational Regulations serve as the basis for determining the scope of duties for the individual positions in the organisation. The Organisational Regulations and the organisational structure of MPL are adopted by the Management Board, approved by the Supervisory Board and finally effected by an Order of the President of the Management Board.

The Organisational Regulations and the organisational structure were updated and approved by the Supervisory Board in November 2017. As the changes have been in force since 1 January 2018, they will be presented in detail in the 2018 report. The update was made in order to streamline the Company's operations in the light of new investment projects and adoption of the document Development Strategy of the Capital Group Międzynarodowy Port Lotniczy im. Jana Pawła II Kraków-Balice sp. z o.o.

Sustainability Report

ORGANIZATIONAL STRUC TURE OF MIĘDZ YNARODOW Y PORT LOTNICZ Y IM. JANA PAWŁ A II KRAKÓW-BALICE SP. Z O.O.

President of the Board OHS Officer

Safety Officer

Data Safety Administrator

Member of the Board

Airport Manager

Organisational and Technical Matters Infrastructure Development Division

Operational Preparation Department

Operation Department

Specialist for Organisational Matters

Workshop Section Specialist for Organisational Matters

Energy Department

Conveyor Section

Airport Operation Duty Officer Department Administration Department

Purchasing Department

Investment Preparation and Development Department

KRLN Department 1 Renovation Department Airport Rescue and Firefighting Services

Medical Section

1

Investor Supervision Department

Communications Department

Environmental Protection and KROL 2 Department

Coordination of Aircraft Ground Movement Department

Environmental Protection Department and Airport Impact Zone Control Department 2

G4-17

About the Company  |  11

Sales Division

Safety and Crisis Management Division

Financial Division

Company Office

Department of the Plenipotentiary for the Protection of Classified Information

Specialist for Organisational Matters

Organisation and Reception Department

Specialist for Organisational Matters

Specialist for Organisational Matters

Classified Information Registry

Marketing Department

Airport Security Service

Chief Accountant Department

Internal Organisation Department

Document Lodging Section

Airport Services Department

Electrical Security Systems Department

European Funds Department

Ownership Supervision and Legal Department

Non-Aviation Services Department

Security Department

Controlling Department

VIP & Business Services Department

Terminal Operation Department

Security Staff Training Department

Asset Management and Purchasing Control Section

Networks and IT Systems Department

Human Resources and Training Department

Social Benefits Department

Operational Section PR Department Customer Service Section

Public Procurement Department

Archive Room

Chaplaincy

Sustainability Report

CAPITAL GROUP MIĘDZ YNARODOW Y PORT LOTNICZ Y IM. JANA PAWŁ A II KRAKÓW-BALICE SP. Z O.O. In September 2017, the Supervisory Board approved the document Development Strategy of the Capital Group Międzynarodowy Port Lotniczy im. Jana Pawła II Kraków-Balice sp. z o.o. which was then adopted by the Shareholders Meeting. The document organises mutual relations in the Group and sets main directions of common activities.

MIĘDZ YNARODOW Y PORT LOTNICZ Y IM. JANA PAWŁ A II KRAKÓW-BALICE SP. Z O.O. IS THE SOLE SHAREHOLDER OF THE FOLLOWING COMPANIES: MPL Services sp. z o. o.

Seat: ul. kpt. M. Medweckiego 1, 32-083 Balice mplservices.pl The company operates as an independent economic operator by decision of the relevant authorities of the international airport. Międzynarodowy Port Lotniczy im. Jana Pawła II Kraków-Balice sp. z o.o. operates based on the infrastructure of the airport and for the clients of Kraków Airport in the field of: management of parking lots, catering services, operation of the observation deck, maintenance of cleanliness in

buildings, administrative and external areas of the MPL, the collection of airport charges and the carriage of passengers and baggage under the name Kraków Airport Taxi.

Kraków Airport Hotel sp. z o. o.

Seat: ul. kpt. M. Medweckiego 3, 32-083 Balice krakowairporthotel.pl A company established to carry out the construction of the hotel on Kraków Airport and, after its completion, to manage the Airport Hilton Garden Inn Kraków Airport hotel.

In March 2017, the hotel restaurant was named L’atmosphere. Following changes in the Articles of Association in 2017, the Company will also build hotels located near Kraków Airport and will manage these hotels or supervise their operation.

LIST OF ORGANISATIONS WHICH KRAKÓW AIRPORT WAS A MEMBER OF IN 2017: 1/ Chamber of Commerce and Industry in Kraków;

3/ Tourist Organisation of Małopolska;

2/ Polish Regional Airport Association;

4/ Airport Council International;

6/ Polish Chamber of Civil Engineers; 7/ Lewiatan - the Employers' Association of Małopolska

5/ British Polish Chamber of Commerce;

G4-2, G4-4, G4-7, G4-13, G4-15, G4-16

About the Company | 13

photo Sławomir Pawłowski

ECONOMIC SITUATION

NE T REVENUES FROM THE SALE OF PRODUC TS, GOODS AND MATERIAL S, BY THE SOURCE OF REVENUE 2017

2016

Increase/Decrease 2017/2016 (%)

Aviation services

145,333,752.61 zł

127,149,513.14 zł

+14.30%

Non-aviation services

81,550,043.94 zł

68,122,097.99 zł

+19.71%

Handling services

99,965.67 zł

121,710.82 zł

-17.87%

Goods and materials

23,764.03 zł

52,463.12 zł

-54.70%

Total

227,007,526.25 zł

195,445,785.07 zł

+16.15%

2017

2016

Increase/Decrease 2017/2016 (%)

Revenues from the sale of products

226,983,762.22 zł

195,393,321.95 zł

+16.17%

Poland

104,066,920.49 zł

89,853,561.76 zł

+15.82%

Export

122,916,841.73 zł

105,539,760.19 zł

+16.46%

Revenues from the sale of goods and materials

23,764.03 zł

52,463.12 zł

-54.70%

Poland

23,764.03 zł

52,463.12 zł

-54.70%

Export

0 zł

0 zł

–

Total

227,007,526.25 zł

195,445,785.07 zł

+16.15%

NE T REVENUES FROM THE SALE OF PRODUC TS, GOODS AND MATERIAL S – TERRITORIAL STRUC TURE

G4-DMA, G4-9, G4-EC1

Sustainability Report

25% net sales profitability (net financial result / total revenue)

8% net profitability of the equity capital (net financial result/ equity capital)

In 2017 the Company had a net profit of 57,884,006.52 zł. The Company's financial situation is stable and there are no threats to its operation in the next year, as proven by the profitability ratios. 3

PROFITABILIT Y AND EFFEC TIVENESS RATIOS

0.21 total asset turnover (net sale revenue / total assets)

37 receivables turnover ratio in days (average value of trade receivables * 365 / sale revenues)

19

Compared to the generally accepted standards, the financial liquidity ratios are very good. The ratios for current liquidity and quick liquidity are 5.11 and 5.04, respectively. This level guarantees that the Company will not have any problems with current liquidity. High levels of these ratios are the result of the accumulation of funds for a large-scale investment process.

FINANCES – LONG-TERM PL ANS In 2017, the document Development Strategy of the Capital Group Międzynarodowy Port Lotniczy im.

Jana Pawła II Kraków-Balice sp. z o.o. was adopted, which organises mutual relations in the Group and sets the main directions of common activities.

Independent of the strategy, albeit closely related to it, is the Master Plan for Kraków-Balice for 2016-2036.

The document indicates the investment directions of Kraków Airport for 2017-2036 in order to ensure the handling of the forecast number of passengers. A long-term financial model was developed which confirmed the absence of threats to investment projects in terms of financing and current MPL operations.

Particularly noteworthy are the receivables and liabilities turnover rates in days, that represent the average time of inflow of receivables and the average time of liabilities settlement by the Company, respectively. In 2017, these ratios were at the level of 37 and 19 days, respectively.

liabilities turnover ratio in days (average annual balance of trade liabilities * 365 / operating costs)

37% debt ratio (liabilities and provisions for liabilities / total liabilities)

The financial ratios were calculated on the basis of data from MPL financial statements for the financial year 2017. The financial statements were audited by a certified auditor, an authorised entity Deloitte Polska sp. z o.o. s.k.

3

G4-DMA, G4-2, G4-EC1

About the Company | 15

KRAKÓW AIRPORT BRAND

Since 17 May 2017 Kraków Airport has had a new logotype. The logo refers to the terminal and the management strategy of a modern airport. The strategy which requires a comprehensive approach to airport operation in terms of various factors (passengers, neighbours, business partners), takes into consideration the changes in the aviation industry in recent years (increased customer awareness, much better availability of flight connections and travel planning tools).

The essence of the Kraków Airport brand is safety, quality of services, network of connections, investment projects and sustainable development. The new logo is a symbol of being open to new challenges, and an evolution in the management of Kraków Airport.

The new logotype was selected in a competition announced on 6 December 2016. 92 designs were received, of which 90 met the formal criteria. The winner of the

New Kraków Airport Logotype competition was 2 code graphics studio.

The designs were evaluated by a panel consisting of the representatives of Jan Matejko Academy of Fine Arts in Kraków, Kraków University of Technology, “ARCHITEKTURA” Design Agency Czech-Duliński-Wróbel, and Kraków Airport. The new logo will stay with the brand for years to come, taking into account the experience of Kraków Airport, business strategy and orientation to customers.

Presentation of the new Kraków Airport logo:

G4-DMA, G4-4, G4-13

Sustainability Report

Functioning and growth of an airport affects the environment and community, hence daily operations of Kraków Airport are based on sustainable development principles. A comprehensive approach to management is ensured by the document Strategy of Social Responsibility of the Airport for 2016-2018. The strategy is based on the international standard PN-ISO 26 000.

Social commitment and development of local community

Customer relations

Fair operational practices

Employment practices

The strategy was revised in January 2017. Environmental protection was added to the list of priority areas.

The area of employment practices was also evaluated. The strategy now has five priority areas: social commitment and development of the local community; customer relations; environmental protection; fair operational practices; employment practices.

The so-called flagship projects are carried out in these areas.

Environmental protection

According to the CSR vision adopted in the strategy Kraków Airport cares for the natural environment and the local community; it keeps the levels of satisfaction of its passengers as high as possible, the fairness of market and operational practices, as well as the personal development and satisfaction of its employees.

In all areas of its operations Kraków Airport intends to build stable and long-term relations with stakeholders based on dialogue and balance between economy and social needs.

The commitment of the airport can be proven by the number of initiatives undertaken to date.

Strategy:

G4-DMA, G4-2, G4-56

photo Sławomir Pawłowski

SOCIAL RESPONSIBILITY STRATEGY

Passenger Traffic and Air Operations at Kraków Airport | 17

photo Sławomir Pawłowski

PASSENGER TRAFFIC AND AIR OPERATIONS AT KRAKÓW AIRPORT

Sustainability Report

AIRPORT CATCHMENT AREA

E75

E77

90 minutes 10.4 million

Katowice A1

120 minutes 14.5 million

Kraków

A4

A4

E40

E77

Zakopane Poprad

Kraków Airport is located 11 km west from the city centre of Kraków.

The airport borders the Kraków-Katowice section of the A4 motorway to the north, and is located near important national and European communication routes. Kraków Airport's catchment area covers approx. 10.4 million inhabitants,

which corresponds to the time of travel of approx. 90 minutes from the airport. However, if we take into account a travel time of 120 minutes, then the catchment area will also cover parts of the Czech Republic and Slovakia, thus expanding its reach to a total of 14.5 million persons – 12.56 million citizens of Poland, 1.37 million

citizens of the Czech Republic, and 0.57 citizens of Slovakia. This can be recognised as a global standard in terms of assessing the potential passenger market for airlines using a particular airport.

G4-DMA, G4-2, G4-8, G4-9, G4-EC7, G4-EC8

Passenger Traffic and Air Operations at Kraków Airport | 19

photo Kraków Airport

STATISTICS

Kraków Airport is the second largest airport in Poland in terms of the number of passengers handled and the largest regional airport. In 2017, Kraków Airport joined the group of European airports that handle more than 5 million passengers a year.

SUMMARY OF 2017 4 5,835,189 passengers, that is 17% more than in 2016; 4 6,264 air operations (total takeoffs and landings)¸ that is 10% more than in 2016; 1 5,987 passengers handled a day (daily record is 20,736), that is 17.6% more than in 2016;

The data and statistics presented in this publication are based on the internal statistical data of Kraków Airport, questionnaire surveys conducted for Kraków Airport, and data from the reports of the Civil Aviation Office (ULC).

4

G4-8, G4-9, A01, A02, A03

The monthly dynamics ranged from +9% to +24% in terms of passengers handled, and from +5% to +17% in terms of recorded operations.

of which passengers can use a wide range of traditional and low-cost carriers.

Kraków Airport has a diversified network of connections as a result

7,100,000 pieces of cabin luggage checked by the Airport Security Service; 76,337 passengers used the Business Lounge, that is 21.7% more than in 2016; 2,879 passengers used the VIP service, that is 5.2% more than in 2016;

3,242 tons of cargo, that is 29% more than in 2016; 478 air operations cancelled or re-routed in the entire year (e.g. due to carrier operational problems, weather, etc.), that is 6.7% more than in 2016; 69 people were on the largest VIP delegation handled in 2017 – they came from the People’s Republic of China.

Sustainability Report

NORWAY

UNITED STATES

CHICAGO

10:00

BERGEN

FINNLAND

2:20

OSLO (OSL / TRF) BELFAST

STAVANGER

2:55

BIRMINGHAM BOURNEMOUTH BRISTOL

2:35

2:05 SWEDEN

GOTEBORG

2:40

MALMÖ

EAST MIDLANDS 2:35 EDINBURGH GLASGOW

LEEDS BRADFORD LIVERPOOL

IRELAND

DUBLIN

2:40

COPENHAGEN

LONDON (LGW / LHR / STN)

3:00

SHANNON

2:45

MANCHESTER

3:00

NEWCASTLE

2:50

2:35

AMSTERDAM

DORTMUND 1:45

UNITED KINGDOM

EINDHOVEN

2:00

BRUSSELS (BRU / CRL)

2:00

FRANKFURT

1:40

MUNICH

2:15

BASEL

2:15

PARIS (BVA / CDG)

2:15

GENEVA

2:10

ZURICH

1:45

ALICANTE

BARCELONA (BCN / GRO)

3:50

MADRID

3:35

PORTO

3:35

MALAGA

3:40

PALMA DE MALLORCA

SEVILLE

GRAN CANARIA TENERIFE

5:30

PRAGUE

1:25 1:30

1:15

BOLOGNA

1:40

CAGLIARI

2:30

LAMEZIA

2:10

2:40

PESCARA PISA

1:50 2:10

TRAPANI

2:30

VENICE (TSF / VCE)

3:05

GREECE

1:55

ROME

3:00

1:45

2:00

ATHENS

2:10

CHANIA

2:35

1:40 MALTA

MALTA

CYPRUS

2:40

PAPHOS

3:15

MORROCO

4:25

POŁĄCZENIE REGULARNE REGULAR CONNECTION

1:45

ITALY

5:30

MARRAKESH

KIEV

1:05

AUSTRIA

VIENNA

NAPLES

3:40

VALENCIA

CZECHREPUBLIC

MILAN (BGY / MXP)

3:15

LISBON

0: 55

1:55

SPAIN PORTUGAL

1:30

WARSAW

UKRAINE

1:30

SWITZERLAND

2:15

GDANSK

1:25

STUTTGART

LOURDES MARSEILLE

1:40

NUREMBERG

FRANCE

LYON

1:20

DUSSELDORF HAMBURG

BELGIUM

POLAND

BERLIN (TXL / SXF)

2:00

2:00

1:30

GERMANY

NETHERLANDS

2:50

1:50 1:30

STOCKHOLM (ARN / NYO)

D E N M A R K

2:5 2:45

2:00

2:05

TRONDHEIM

2:35

HELSINKI

2:05

ISRAEL

EILAT OVDA TEL AVIV

czas lotu time of flight

101 scheduled connections;

28 new connections;

20 carries (of which two, El-Al and Ukraine International Airlines, started flights in 2017);

4 continents (Europe, Africa, Asia, and North America);

24 countries, including 5 new ones (USA, Ukraine, Portugal, Czech Republic and Morocco).

G4-4, G4-6, G4-8, G4-9

3:50

3:35

Passenger Traffic and Air Operations at Kraków Airport | 21

NEW ROUTES 2017

TEL AVIV DUSSELDORF LOURDES PORTO PESCARA VENICE LAMEZIA STOCKHOLM

CHANIA

III.

IV.

VALENCIA

CHICAGO

V.

VII.

FRANKFURT IX.

BARCELONA BERLIN GLASGOW GOTEBORG LISBON MALMO MARRAKESH MARSEILLE NAPLES NUREMBERG PRAGUE TEL AVIV X.

ATHENS SEVILLE BIRMINGHAM XI.

KIEV XII.

AIRLINES TRADITIONAL CARRIERS

LOW-COST CARRIERS

479,688

476,162

July

529,473

June

545,835

May

541,752

553,175

April

530,815

March

528,784

February

486,288

362,296

January

433,985

366,936

NUMBER OF PASSENGERS

August September October November December

G4-8, G4-9, A01, A02

3,703

3,624

July

4,205

June

4,238

May

4,192

4,193

April

4,194

March

4,226

February

3,904

2,997

January

3,549

3,239

NUMBER OF AIR OPERATIONS

August September October November December

Sustainability Report

AIRPORTS IN POL AND MARKET SHARE IN 2017 BY NUMBER OF PASSENGERS 6 Kraków Airport continues to be the leader among Polish regional airports. In 2017, Kraków Airport had a 14.6% share in the market by number of passengers handled.

PASSENGER TRAFFIC AT KRAKÓW AIRPORT IN 2016 BY THE TYPE OF FLIGHT5

2017

Number of passengers

132

Number of seats available

152

Passenger load factor

86%

Scheduled flights and charter flights

OT LU HER* Z SZZ 1.07 1 % RZE .45% 1.73%

9.70

Average statistics (per 1 air operation)*

KTW%

5,835,189

CENTR A

Total

WA

5,378,950

39.3 W 5%

International flights

R

L

11.5

456,239

GDN1%

Domestic flights

KR

14.5 K 8%

AL ION EG

*

Type of connection

Number of passengers

4.6 1 %

POZ

7.02%

WRO

3 7.3

%

WM

I

Other: BZG 0.80%; LCJ 0.52%; SZY 0.25%; IEG 0.04%; RDO 0.02%. The graphic uses airport codes given by the International Air Transport Association (IATA).

These codes are explained in the glossary at the end of the report.

*

MOST POPUL AR TRAVEL DESTINATIONS IN 2017 Favourite countries: passengers travelled most frequently to/from: United Kingdom (1.5 million passengers), Germany (0.9 million passengers), and Italy (0.6 million passengers); The most frequently visited cities: London (569,000 passengers), Warsaw (320,000 passengers), and Frankfurt (290,000 passengers);

5 The data includes General Aviation, i.e. general aviation operations (according to the definition of ICAO – the International Civil Aviation Organization – GA are operations with the use of an aircraft, other than those performed as part of commercial air transport and aviation services).

Data from a document published by the Civil Aviation Authority (CAA), Warsaw, March 2018, prepared based on information received from airlines. It does not include passengers in transit and General Aviation.

6

The most popular vacation destinations: Porto, Tenerife, Alicante, Gran Canaria and Malaga (for each destination the passenger load factor exceeded 94%).

G4-8, G4-9, A01, A02

Passenger Traffic and Air Operations at Kraków Airport | 23

photo Kraków Airport

PASSENGER PROFILE

The profile of passengers visiting Kraków Airport is based on Airport Service Quality questionnaire surveys conducted by Airports

ARRIVAL S/DEPARTURES Source: Questionnaire Survey by Kraków Airport

Council International 7. Independently of the ASQ surveys, Kraków Airport also conducted an internal survey – Pax Profile, the aim of which was

to determine the preferences and expectations of airport passengers (5,200 questionnaires were conducted in 2016).

38%

DEPARTURES

62%

ARRIVAL S

7 The 2017 surveys of ASQ were conducted by ACI in 317 airports around the world, including Kraków Airport.

G4-8, A01

Sustainability Report

AGE/ GENDER Source: Based on questionnaire surveys conducted by Airports Council International in 2017.

6% Age 65-75 12% Age 55-64 13% Age 45-54 21% Age 35-44

DESTINATION

27% Age 26-34

Source: Questionnaire Survey by Kraków Airport.

13% Age 22-25

48% Tourism

8% Age 16-21

27% Family 54% Women

14% Business

46% Men

7% Work for a longer time 4% Other

BY WHAT MEANS OF TRANSPORT DO PASSENGERS TRAVEL TO/FROM KRAKÓW AIRPORT ?

COUNTRY OF RESIDENCE

4% United States

In 2016, the number of passengers travelling to the airport using a car, taxi, or bus decreased in favour of rail. According to the ASQ survey, 18% of Kraków Airport passengers 8 declared they travel to the airport by train – this number is almost twice as high as the European average. More than 1.5 million passengers travelled to/from Kraków Airport by rail last year (boarding and leaving the train at Kraków Lotnisko station).

4% Italy

Source: Based on questionnaire surveys conducted by

Source: Questionnaire Survey by Kraków Airport.

42% Poland 16% United Kingdom 5% Germany

3% France

Airports Council International in 2017.

3% Ireland

35% Car

3% Norway

29% Taxi

2% Spain

18% Railway

2% Sweden

11% Bus

2% Ukraine

3% Rented car

15% Other

4% Other

With surveys by Kraków Airport and the rail operator – Koleje Małopolskie, this number amounts to as much as 26%.

8

G4-8, A01

Passenger Traffic and Air Operations at Kraków Airport | 25

photo Shutterstock

ANIMALS TRAVELLING BY AIR

Passengers are more frequently taking their pets with them on journeys – usually cats and dogs. Last year, a total of 1,192 animals started or ended their journey at Kraków Airport – a 14% increase in the numbers of animals travelling under the AVIH, PETC or CARGO procedures, compared to 2016. 9 Last year was also record-breaking in terms of the number of animals transported per month (163 animals in December 2017), 9% more than the last year's record, also broken in December.

In 2017, the largest number of animals travelling to / from Kraków Airport were transported by Norwegian (64%), Lufthansa (14%) and LOT (8%), however animals were also transported by eleven other airlines.

Interestingly, also Ryanair was one of the airlines that allowed pets (only dogs) on board last year, as it allowed assisting dogs.

travelled to and from Scandinavia (airports: OSL, SVG, TRD, ARN, BGO, HEL, CPH).

In addition to dogs and cats, fish eggs were transported many times on Lufthansa planes, and in December 2017 spiders flew from Kraków Airport, also on a Lufthansa flight.

The largest number of animals travelled between Kraków (KRK) and Oslo Gardermoen (OSL): 20%, Stavanger (SVG): 11% and Trondheim (TRD): also 11%. In total, 71% of animals handled

64% Norwegian Depending on the type of the animal and its size, it can be transported either in the baggage hold (AVIH), in the cabin (PETC) or via CARGO flights. Airlines offer two options to transport animals on a plane: either in the passenger cabin (PETC), or in the baggage hold (AVIH).

Each airline defines its own provisions regarding the transport of animals.

9

G4-8, A01

14% Lufthansa 14% Other 8% LOT

Sustainability Report

photo Krakรณw Airport

INFRASTRUCTURE OF KRAKร W AIRPORT

Infrastructure of Kraków Airport | 27

photo Kraków Airport

AIRSIDE AREA

Kraków Airport has a single runway, with a length of 2,550 m and a width of 60 m, with a concrete surface, and landing headings 25 and 07.

The apron allows for the simultaneous stationing of 22 aircraft with the reference code C (such as Boeing 737-800). After the expansion completed in 2016, total surface area of the apron is 166,000 m² (16.6 ha).

restoration of horizontal and vertical signs. The construction works will be performed on the area of about 3.8 ha. The works are carried out in stages in order to minimise the impact on current aircraft operation.

photo Kraków Airport

A de-icing zone was opened last year, allowing to de-ice aircraft with engines on.

The renovation of the oldest (southwest) part of the airport apron began in 2017. The project scope includes total demolishing of the existing concrete surface of the apron and construction of a new surface adapted to the standards in force now at Kraków-Balice. The project will also encompass the modernisation of necessary infrastructure in terms of rain sewers, sanitary sewers, linear drainage, the construction and modernisation of light masts with control systems, adapted to operations at limited visibility (II CAT) and the

2,550 m runway length

G4-9, G4-EC7

60 m

runway width

22

parking spots

Sustainability Report

GENERAL PL AN OF THEÂ AIRPORT

passenger terminal

help point

hotel

1

multi-storey car park

KrakĂłw Airport Taxi stop

entrance / exit

2

outdoor car park

bus (airport/city centre)

entry to footbridge (level +1)

3

hotel car park

bus - private transport

cargo terminal

coach car park

train to the city centre

administrative building

kiss & fly

pedestrian pathway

Aviation Education Centre

pedestrian crossing

dog park

G4-9

Infrastructure of Kraków Airport | 29

photo Kraków Airport

TERMINAL

KRAKÓW AIRPORT TERMINAL 55,000 m² terminal area; 4,200 m² area of all commercial and service points; 3 jet bridge towers and 3 passenger jet bridges. Additional 2 jet bridges can also be installed; 9 passport control points in the departure zone, including 1 for disabled passengers, crews and priority passengers, and 1 so-called “reversal point” for transfer passengers, i.e. passengers who travel from the non-Schengen zone to the Schengen zone; 1 2 passport control points in the arrivals zone;

G4-9, G4-EC7

45 check-in desks plus one additional dedicated for VIP passengers and one check-in desk for oversized baggage; 18 departure waiting rooms (gates): 14 waiting rooms in the Schengen zone, 4 waiting rooms in the non-Schengen zone. Some of the waiting rooms in the Schengen zone can also be used by non-Schengen passengers, as needed; 3 modern baggage control lines, equipped with security scanners with the highest standard of security in Poland; 4 modern baggage carousels; another two carousels can optionally be installed (the old terminal only had two baggage carousels);

2 airport information points, including one shared with tourist information (Visitor’s Centre); 4 playgrounds and 5 rooms for parents with children; 2 Business Lounges; one in the Schengen zone, and one in the non-Schengen departure zone, each with a bathroom (with a shower), a rest zone, and a work room with computers, unlimited free Wi-Fi access, and a self-service mini bar; 1 observation deck; 1 chapel, also available for priests travelling with pilgrims who would like to celebrate a mass; 2 booths for smokers.

Sustainability Report

4,200 m² of commercial space with more than 50 commercial and service points: 16 shops; 12 car rentals; 11 food courts; 7 ATMs; 2 currency exchange points; 1 bank; 1 post office; 1 luggage film wrapping point.

Among the shops, commercial services, and eating places located at the airport, there are several special places that emphasize the individual and local character of Kraków and Małopolska region. The interior design of shops and restaurants resembles famous and historically important places in Kraków, such as Sukiennice or Wieliczka Salt Mine.

In the restaurants, passengers can taste local Polish specialities, whilst shops provide regional souvenirs, handicrafts and groceries.

VIP TERMINAL

Kraków Airport train station; footbridge connecting the terminal with the railway station, multi-storey car park and hotel;

The VIP terminal is a part of the passenger terminal building and has an area of 1,054 m². It consists of a room for General Aviation crews, three conference rooms, and two apartments for rent. It has a separate check-in desk, a security control zone, passport control zone and a customs screening zone.

The guests of the VIP terminal can also access the shopping area to purchase products in the duty-free zone before departure.

parking infrastructure (multi-storey car park, outdoor car parks);

AUXILIARY INFRASTRUC TURE:

Construction of the infrastructure for the discharge of rainwater, the supply of fresh water and reception of sanitation wastewater from Kraków Airport began. The project is financed by the Company and Kraków

Internal transport system with lanes and bays for taxis, buses and mini-buses, coaches, and passenger cars ( kiss & fly bay);

dog park with a self-refilling water cup and play equipment; shelter for scooters and bicycles equipped with a set of tools to perform minor repairs; Hilton Garden Inn Kraków Airport hotel (154 rooms, 24/7 Business Centre, conference rooms, L’atmosphere restaurant).

photo Kraków Airport

COMMERCIAL SPACE

children to allow them to watch planes on the apron.

The observation deck, located on level two of the passenger terminal, was reopened in 2017. The deck has a platform for disabled people and

G4-DMA, G4-4, G4-9, G4-EC7

photo Jacek Krawczyk

Infrastructure of Kraków Airport | 31

The area for site facilities was handed over and works commenced in October 2017. Currently, the contractor is performing construction works at areas handed over by the owners.

Waterworks. The project comprises three tasks:

construction of a rainwater pumping station with power supply and two rainwater pressure pipelines.

photo Jacek Krawczyk

construction of a water supply line with a pressure boosting station, power supply and water connection;

construction of a sanitary wastewater pumping station with power supply and two wastewater pressure pipelines;

Passenger path:

G4-DMA, G4-4, G4-EC7

Sustainability Report

Level

2

PASSENGER TERMINAL

Observation deck

Exits

Level

Level

Exits

1

Exits

Arrivals

0

Arrivals

Arrivals

TE

RM

IN

AL BA

T

BA

T

CE

L

Transport

Departures

Arrivals

PRM path

Services

check-in

document control

PRM check-in

hotel

lost & found office

bus to the city centre

oversized baggage

baggage pick-up

PRM security control

restaurant

bank

train to the city centre

security control

lost baggage

help point

shop

ticket office

taxi

document verification

visitor’s centre

PRM toilets

business lounge

currency exchange

kiss & fly

airport info point

toilets

VIP terminal

car rental

multi-storey car park

toilets

family room

Special

playground

chapel

outdoor car park

animal check-in point

meeting zone

first aid

dog park

telephone

hotel car park

medical point

VAT refund

post office

family room meeting zone

Aviation Education Centre

G4-4

Infrastructure of Kraków Airport | 33

photo Kraków Airport

PASSENGER FACILITIES

DEDICATED INFRASTRUC TURE FOR DISABLED PERSONS AND PERSONS WITH REDUCED MOBILIT Y The airport has established a so-called “Blue Path”, a system of dedicated signs, and assistance panels, the purpose of which is to help persons with disabilities and persons with reduced mobility (PRM)10 to move around the airport and to access the terminal facilities.

The airport car park has special parking places for vehicles of persons with disabilities. The places are marked with special symbols and located near the terminal entrances.

The path leading to the terminal is marked with pictograms with the blue symbol of a disabled person in a wheelchair. All elements of the infrastructure of the terminal, i.e. information points, check-in desks, security control zones, departure

10

PRM: Persons with Reduced Mobility.

G4-DMA, G4-15, G4-56

halls, toilets and elevators have been adapted to the needs of persons with disabilities.

Additionally, there are several Help Points located in the terminal and in its vicinity, which can be used to call assistance personnel. Last year, the call panels at the airport were used 45 times to call assistance.

At the request of a disabled passenger, a trained assistance staff member will accompany them and provide with the necessary help. The assistance staff provide assistance to the disabled person from the moment of arrival at the airport, during the wait for check-in, during check-in, and finally on boarding the plane. Regulations regarding the nature and scope of the special assistance for persons with disabilities at Kraków Airport are included in the Code of Good Practice in Handling Persons with Reduced

Mobility at Kraków Airport available at the airport's website.

In 2017, Kraków Airport equipped the information points with induction loops for passengers with hearing impairment. The devices pick up the voice of the airport information officer and send it directly to the hearing aid. The user of the hearing aid equipped with the induction loop receiver hears a clear voice which helps eliminate problems caused by unfavourable terminal acoustics. The induction loop can be used simultaneously by an unlimited number of people.

16,564 disabled passengers served in 2017 (+8.6% in comparison to 2016), which was 0.29% of all Kraków Airport passengers last year.

the latter, employees play the role of a disabled person and attempt to overcome various obstacles, e.g. curbs, driveways, etc. while moving in a wheelchair. Every new airport employee is required to undergo such training. The employees have the possibility to re-take the training every year to refresh their knowledge.

TRAVELLING WITH KIDS In addition, further facilities for disabled people were implemented in 2017, including a platform on the observation deck and a dedicated transport waiting zone in front of the terminal.

In order to better understand the needs of people with disabilities, Kraków Airport cooperates with the Foundation for Active Rehabilitation to provide free training for airport personnel. Training sessions are held regularly every year. Last year, 65 airport employees participated in a two-day training session. So far, a total of 664 airport employees (not only the employees of MPL, but also of its partners, i.e. MPL Services sp. z o.o. – including taxi drivers of Kraków Airport Taxi), officers of the Border Guard and Customs Office and contractors providing services at the airport have received such training. The training programme is tailored to the needs of the participants. Each training session consists of two parts – the theoretical and the practical part. During

Every zone of the passenger terminal has a special intimate and child-friendly family room with comfortable seats, perfect for feeding babies. The rooms are equipped with changing tables for babies and containers for used diapers. Additionally, the rooms also have microwave ovens to heat up food for children.

There is also a baby product vending machine in the passenger terminal.

Additional changing tables are installed in ladies and gents' toilets.

Kraków Airport participates in the nationwide Large Family Card programme.

Baby strollers are available free of charge for parents who require them. Airport baby strollers can be used after passing through the security check.

Women in advanced pregnancy, and families travelling with children under 3 can make use of an additional security control checkpoint called Special Service Line. This shortens the waiting time for the security check, and thus improves the comfort of passengers requiring special care and attention. In order to make the waiting for the plane more bearable for our “little passengers”, several playgrounds have been created at the terminal.

Travelling by air is stressful for some passengers. To minimize the stress

photo Kraków Airport

photo Kraków Airport

Sustainability Report

G4-DMA, G4-HR7

photo Kraków Airport

Infrastructure of Kraków Airport | 35

Functionalities of the application were expanded in 2017 by adding an interactive 3D car park map with navigation function and a car location feature. The Kraków Airport Blog function was also added. Following international Google standards, a dedicated Privacy Policy for the Kraków Airport mobile application was established in 2017.

FREE PHONE CALL S AND WI-FI caused by the fear of flying and to while away the waiting time, a space was established in 2017, in the departure lounge, in which passengers can play XXL-size chess.

Four phone sets are available in the passenger terminal. Passengers of Kraków Airport can use these phones to make free national calls (both landline and mobile numbers).

Free Internet Network name:

KRK Free WiFi

The yellow phones were installed in the following places: landside area: 1/ n ext to the Visitor’s Centre; 2/ n ear the PLL LOT ticket office. beyond the security check: 1/ i n the Schengen departure zone – near the Premium Food Gate shop; 2/ i n the non-Schengen departure zone – near the Keraniss shop.

MOBILE APPLICATION Kraków Airport offers the travellers and airport fans a free mobile application, equipped among other things with intuitive terminal navigation, useful travel information, push-style flight status updates (pop-up alerts), or an option to send a selfie postcard, very popular among passengers.

11,945 users 8,891 downloads in 2017 4.5 average application rating

G4-DMA, G4-PR5

Download application (English version):

photo Kraków Airport

Sustainability Report

security zone (at the footbridge exit) in early 2017; information is updated every 5 minutes. The information displayed allows passengers to manage their time better. The information is also displayed on a monitor in the area of check-ins 1-8.

DOG PARK

FOOTBRIDGE

SMOKER BOOTHS

Since July, guests of Hilton Garden Inn at Kraków Airport can use a comfortable roofed footbridge between the hotel and the passenger terminal.

The next facility implemented in 2017 was two smoker booths. There is one booth in the Schengen zone and one in the non-Schengen zone.

DISPL AY SCREEN WITH SECURIT Y CHECKPOINT WAITING TIMES A display informing about waiting/ processing times at security checkpoints was installed next to the

photo Sławomir Pawłowski

The footbridge connects the hotel and the railway station, the multi-storey car park and the terminal, without the need to go outdoors.

The steel structure of the footbridge is 13 m long, it is located 5 m above ground, and weighs 32 tons.

Kraków Airport is the only airport in Poland where a special facility for dogs has been introduced – a dog park designed with the well-being of pets in mind. This fenced park with a surface area of 166 m² is located near the outdoor car park, next to the passenger terminal. The dog park is equipped with a self-refilling water cup, a dog waste basket with disposable bags, and various play equipment such as: hurdles, a ramp, a circular jump-over, and a hydrantshaped jump-over with a crossbeam.

Footbridge opening:

G4-DMA

Infrastructure of Kraków Airport | 37

KRAKÓW AIRPORT 2036 ZABIERZÓW

RZESZÓW CHYŻNE

KATOWICE WROCŁAW

KRAKÓW-PN WARSZAWA

passenger terminal

train to city

airport maintenance

multi-storey car park

fuel depot

construction site

outdoor car park

hotel

hangar

hotel car park

cargo terminal

kiss & fly

Aviation Education Centre

The air traffic forecasts indicate that in 2036 Kraków Airport will handle up to 12 million passengers. That is why, after months of preparation, the Master Plan for Kraków-Balice Airport for 2016-2036 was announced

G4-2, G4-13, G4-EC7, G4-SO2

in October 2017. The Master Plan takes into account trends on the aviation market and complements the development of the region and aviation business in Poland and Europe. The implementation of tasks

included in the Master Plan is divided into 3 stages.

Sustainability Report

#NowaDrogaKRK

1

number of runways

2,800 m

to be used at Kraków Airport after commissioning of the new runway

NEW KRK RUNWAY The construction of a new runway, which is a key element of airport infrastructure, is the base for further modernisation of the airport.

Preparations for the project started in 2016.

The decision that a new runway is necessary was taken after it had been confirmed that it would be impossible to repair the currently used runway, or to construct a new one in the same place, without completely stopping the operation of the airport. Kraków Airport plans to construct a new runway, 2,800 m long and 60 m wide. The length of the planned new runway will be sufficient to handle almost all types

new runway length

of aircraft currently used by airlines.

It is also adapted to the current and predicted future needs of the airport.

OTHER KRAKÓW AIRPORT 2036 INFRASTRUC TURE Passenger terminal expansion to about 83,000 m² (now 55,000 m²); Apron expansion to 36 bays for C-code aircraft (now 22 bays); Relocation of the cargo terminal (next to the present DW 774) and increasing the area of the cargo terminal almost threefold (according to the Plan, cargo will still be handled mainly by scheduled flights, and cargo operations will

60 m

new runway width

be a small percentage of flights from Kraków Airport). In addition, the new terminal building will be adapted for further expansion in the future; Demolishing the existing cargo terminal and construction of a new passenger terminal in its place.

About 1 PLN billion will be spent by Kraków Airport on planned investment projects. All projects will be performed in accordance with environmental regulations and in a manner safe for the Company's finances.

The projects will be financed from Company resources and from the issue of bonds.

Kraków Airport 2036:

Contact for investment projects: nowadrogakrk@krakowairport.pl

G4-2, G4-13, G4-EC7, G4-SO2

Relations with Stakeholders | 39

photo Kraków Airport

RELATIONS WITH STAKEHOLDERS

photo Kraków Airport

Sustainability Report

and are supported with a system of regular communication. The frequency and form of contact depends on relations with the particular group of stakeholders.

The stakeholders of Kraków Airport have been identified and grouped based on the level of relationship, their influence on the activity of the airport, as well as the influence of

the airport on each group. A map of stakeholders was created during the work on the Social Responsibility Strategy of Kraków Airport for years 2016-2018, and is constantly monitored. Regardless of this, the airport's operational documents contain matrices of stakeholder relations which serve as the basis for its proper functioning.

photo Kraków Airport

Identification of stakeholder groups and regular communication with stakeholders is fundamental to the Airport's business. The stakeholders have a decisive influence on the functioning of the company, which is why establishing and maintaining trust-based long-term cooperation is crucial for Kraków Airport. The priority areas of the company's business are subject to regular consultations,

G4-24, G4-25, G4-26

Relations with Stakeholders | 41

MAP OF STAKEHOLDERS

PARTNERS AND CONTRAC TORS Companies rendering services for airlines: handling agents, fuel suppliers, catering, aircraft technical and maintenance services Companies rendering services for passengers: shops, restaurants, service points, car rentals

CLIENTS

EMPLOYEES

Passengers and consumers: passengers (including VIP clients), persons dropping off/ picking up the passengers, airport tour participants

Staff

Airlines

Trade Unions

Interns and trainees Retirees Staff Council

General Aviation

Public and private transport to/from the airport Polish Air Navigation Services Agency (air traffic control) Police Border Guards Customs Service Voivodeship Veterinary Inspectorate in Kraków Aerodrome Meteorological Station Kraków-Balice Air Ambulance Service Military Falconer Suppliers Financial partners

SHAREHOLDERS LOCAL COMMUNIT Y Residents of the neighbouring communes Non-governmental organisations Schools and universities

AUTHORITIES, PUBLIC INSTITUTIONS AND STATE OFFICES

Małopolskie Voivodeship

INTERNATIONAL INSTITUTIONS AND INDUSTRY ORGANIZATIONS

Media and general public

G4-20, G4-21, G4-24, G4-26

Municipality of Kraków Commune of Zabierzów

SUBSIDIARIES:

Business Spotters

“Polish Airports” State Enterprise

NATIONAL AND INTERNATIONAL COMPE TITORS

MPL Services Kraków Airport Hotel

Sustainability Report

MAP OF STAKEHOLDER ENGAGEMENT Groups of stakeholders

All

Passengers

Airlines

Local community

Media and general public

Types of engagement

Frequency

Key issues

>>Website

>>every day

>>Social media

>>every day

>>Blog

>>every day

>>Helpline

>>permanent access

>>Application

>>permanent access

>>E-mail

>>permanent access

>>Kraków Airport Sustainability Report

>>once a year

>>Passenger and consumer satisfaction survey

>>every 3 months

>>Airport information desks

>>permanent access

• Travel – and check-in related issues

>>Need Help service

>>permanent access

• Airport infrastructure

>>Airgate magazine

>>every 2 months

• Service quality

>>Complaints and suggestions form

>>as necessary

>>Airport TV

>>every day

>>Information campaigns

>>as necessary

• Transport and car park

>>Information leaflets

>>permanent access

• Route network

>>Kraków Airport Loyalty

>>permanent access

>>Individual meetings

>>as necessary

>>Login Zone – Internet platform with access to reports and analyses

>>permanent access

>>Direct business contact

>>as necessary

• Safety of flight operations and passengers

>>Fairs and industry-related events

>>occasionally

• Air traffic analysis

>>Industry-related websites

>>as necessary

• Satisfaction level of passengers and clients

>>AOC (Airline Operators Committee)

>>every 3 months or as needed

• Airport strategic plans

>>B2B section at the Kraków Airport website

>>permanent access

>>Summary of the year meeting

>>once a year

• Attractiveness and potential of the region

>>Consulting and information meetings

>>as necessary

>>Newsletter

>>twice a year

>>On-line questionnaire

>>once a year

>>Events

>>occasionally

>>Grant competition

>>once a year

>>Dedicated E-mail address

>>permanent access

>>Press information

>>as necessary

>>Statistics

>>monthly

>>Press conferences

>>as necessary

>>Meeting to summarize the activity

>>once a year

>>Interviews

>>as necessary

>>Declarations and notifications

>>as necessary

• Facilities and available services • Statistics • Route network • Travel-related issues

• Facilities and available services • Cleanliness • Rules of security check

• Operational issues • Airport fees

• Available services

• Impact of the airport • Noise • Investments • Social initiatives • Investment project funding

• Air traffic statistics • Investments • Passenger safety

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Groups of stakeholders

Handling agents

Tenants

Types of engagement

Frequency

Key issues

>>Ongoing communication

>>as necessary

• Operational issues

>>APN Safety operational meetings

>>as necessary

• Airport infrastructure

>>Meetings of the airport security team

>>monthly

>>Complaints and suggestions form

>>as necessary

• Safety of flight operations and passengers

>>Lost baggage office

>>permanent access

>>Summary of the year meeting

>>once a year

>>Tenant Handbook

>>once

• Rules and costs of using the commercial area(s) at the airport

>>Direct business contact

>>as necessary

• Safety of airport users

>>Meetings

>>as necessary

>>Summary of the year meeting

>>once a year

>>Kraków Airport Loyalty

>>as necessary

>>Ongoing communication

>>as necessary

>>Operational meetings

>>as necessary

>>Meetings of the airport security team

>>monthly

>>Special purpose committees

>>as necessary

>>APN Safety operational meetings

>>as necessary

>>Summary of the year meeting

>>once a year

>>Intranet

>>permanent access

>>Mailing

>>as necessary

• Ongoing events

>>Training

>>regularly

• Corporate governance

>>Information meetings

>>as necessary

>>Directors’ meeting

>>weekly

>>Notice boards

>>as necessary

>>Team-building meetings

>>twice a year

>>Reports

>>once a year

>>Surveys

>>every 3 months

• Air traffic analysis • Satisfaction level of passengers and clients

• Cooperation – marketing • Satisfaction level of passengers and clients • Air traffic analysis

State services

Employees

International institutions and industry organizations

• Cooperation – marketing

• Regulatory compliance • Safety of flight operations and passengers

• Organisational issues • Procedures • Occupational health and safety • Employee benefits • Satisfaction level of passengers and clients • Air traffic analysis

>>Fairs and industry-related events

>>occasionally

>>Supervisory Board meetings

>>every 3 months

• Route network • Safety of flight operations and passengers • Regulatory compliance • Current and forecast financial situation • Route network • Risk management

Owners

>>Meeting of Shareholders

>>once a year or as necessary

• Execution of the plan and development • Satisfaction level of passengers and clients

>>Company operations report

>>once a year

• HR policy • Regulatory compliance

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INTERNET AND SOCIAL MEDIA

krakowairport.pl is the primary source of information about Kraków Airport. In 2017, the website underwent continuous modernization in terms of programming and graphic solutions, and the so-called responsive website design allowing presentation of the website content on mobile devices. The website is available in three languages: Polish, English and Slovak. In 2017, website graphics were updated in connection with the new Kraków Airport logotype. Kraków Airport blog has been added to the service.

1,768,181 users visited the website in 2017, including: 44.1% new; 55.9% returning.

10,033,474 website views, including: 60.39% from mobile phones; 33.88% from desktops; 5.72% from tablets.

serve as a key communication tool during a crisis situation. The profiles of Kraków Airport on social networking websites contain the latest information regarding current events, flight difficulties, summaries, statistics and photos showing the everyday operation and activity of the airport.

Social media is currently the most popular and fastest way to communicate with the airport. They can also

52,188 fans 11,240 followers 4,750 followers 435 subscriptions

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AIRGATE – MAGAZINE AND BLOG

Since 2007, Kraków Airport has been publishing a free Airgate magazine.

The paper version of the magazine is available at the airport and in the city of Kraków, and an online version has been available since 2012. Airgate is popular not only with passengers, but also aviation fans. It has columns about travel, airport life, and features about Kraków and Małopolska which present the region in a cultural and business context. Airgate magazine has been acknowledged many times by the publishing industry, the proof of which are awards and honourable mentions in the “Szpalty Roku” in 2009, 2010, 2013, and 2014.

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In 2017, the magazine received a new graphical layout and was divided into three main sections: Travel, Lifestyle, and Business. Each section features regular columns and topical texts. The magazine is published in cooperation with Custom Publishing Agency – Skivak sp. z o.o.

In 2017, Airgate celebrated its 10 th anniversary. On this occasion, the magazine launched the #PROSTOzKRAKOWA blog to encourage people to travel and see the world. It also presents the advantages of Małopolska and Kraków.

The graphic layout of the blog follows that of the Airgate magazine.

The texts are published under four

sections: Travel, Lifestyle, Business and Airport Information. Airgate Kraków Airport Blog is available at krakowairport.pl and through the mobile application Kraków Airport.

Since the launch in mid-October until the end of 2017, the blog had 7,821 views, including 5,935 unique users.

Sustainability Report

photo Kraków Airport

AIRPORT INFORMATION

The airport has two information points: one located in the check-in zone, and one in the arrival hall, the so-called “Visitor's Centre”, cooperating with Tourist Information, which is run by the Kraków Festival Office.

Thanks to this combination of airport information points with tourist information service, travellers can get detailed information about flights, transport, accommodation, tourist attractions and cultural events taking place in Kraków and in the region of Małopolska. Tourists using the Visitor’s Centre can book a hotel, buy trips, or hire a licensed guide. Free information materials are available,

info_24 info@krakowairport.pl +48 12 295 58 00 +48 12 639 39 89 +48 12 341 39 89 +48 12 363 39 89 + 48 801 055 000

318,515 customers serviced by airport information, which is 5.5% of the entire passenger traffic in 2017.

such as maps, guidebooks and greeting boards which can be used by people meeting their guest at the airport to prepare a greeting text.

Additionally, ticket machines selling tickets for public and rail transport, vending machines and ATMs can be found near the Visitor’s Centre.

Kraków Airport also has a 24/7 Call Centre.

at the airport. This is why, in 2007 a mobile information service called Need Help was established at Kraków Airport.

Its task is to provide passengers with information and guide them around the terminal. The Need Help service is provided by students taking part in an internship programme created

by Kraków Airport 11 . The staff of Need Help wear distinctive bright yellow shirts with the words: “Need Help?”, and can be spotted throughout the airport. The work of this mobile service leaves a positive impression among passengers, and improves the overall satisfaction of airport customers.

NEED HELP MOBILE INFORMATION SERVICE Sometimes passengers who visit the airport for the first time might feel lost, not know where to go, or be unfamiliar with terminology used Read more about the internship programme in the Kraków Airport Employees section.

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photo Kraków Airport

PASSENGER AND CONSUMER SATISFACTION SURVEY

AIRPORT SERVICE QUALIT Y SURVE Y The Airport Council International – Airport Service Quality (ASQ) programme measuring customer satisfaction at the airport was continued in 2017. Almost 320 airports from all over the world participate in the ASQ survey. Rigorous survey procedures and rules, quality control and obligation of impartiality have won it recognition in the aviation industry. The ASQ survey sets global standards for the assessment of passenger satisfaction with the quality of services provided by airports. Kraków Airport joined the programme in 2007, one year after its launch, and currently is the only airport in Poland that participates in it.

In total, 400 people were surveyed at Kraków Airport last year. The results of the survey were subject to thorough analysis and specific actions, and bodies responsible for their implementation were identified, with a view to further improve the standards of service. Last year, a further increase of the ASQ rate was noted.

In March 2017, Kraków Airport received the prestigious ASQ awards from Airport Council International for its first place in the Europe – Best Improvement by Region category, for the greatest progress and increasing overall passenger satisfaction in 2016 (satisfaction rate 3.53 in 2015; 3.93 in 2016).

“HAPPY OR NOT ” CUSTOMER SATISFAC TION SURVE Y 4.1612 – average index for 2017 (+0.23 point compared to 2016).

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Scale of 1 to 5.

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The Happy or Not customer satisfaction survey was launched in 2017. The survey covered 7 areas

of passenger terminal operation: security check, WiFi quality, passport control, luggage waiting time, quality of food court services, cleanliness of terminal and toilets.

Food courts in the departure zone were evaluated as the best area (87%), and WiFi (40%) as the worst.

The most votes were cast by passengers in the April security check

87,425 votes (of which 63% were very good ratings, 16% good, 7% bad, and 14% very bad); 2 78 days – survey period (from 29.03 to 31.12.2017); 24/7 – survey continuity; 76% – average customer satisfaction level in the Kraków Airport "Happy or Not" survey.

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Survey subject

HoN index

Security check (equipment test period 29-31.03)*

78%

Security check (1-30.04)*

80%

WiFi quality

40%

Passport control

75%

Waiting for luggage

73%

Food court (restricted area)

87%

Terminal cleanliness

75%

Food court (landside)

85%

Security check (1-30.11)*

74%

Toilet cleanliness

79%

Average

76%

According to the methodology adopted at Kraków Airport the security survey is conducted once per season, that is summer season (survey conducted in April) and winter season (survey conducted in November).

*

on-line form available on the Kraków Airport website, or submit their comments by e-mail or using social media.

According to the information policy of Kraków Airport, every submitted form will be answered, even if its contents do not directly concern the operation of the airport. This also applies to comments posted on social media (on Facebook and Twitter). Every feedback regarding the operation of the airport posted on our profiles in social media will receive the full attention of our personnel. Thanks to the comments and suggestions of our passengers, the Company can constantly improve the functioning of the airport.

The systematic and transparent comment and suggestion collection procedure, and the speed of responding to all messages, in accordance with Kraków Airport Social Responsibility Strategy for 2016-2018, is a flagship project in

0.005% – feedback rate (complaints, suggestions and praises), ie. the number of feedbacks relative to the number of passengers handled during the year (in 2016 the rate was 0.007%); 299 feedbacks (366 in 2016); 7.34 calendar days – average feedback response time (7.02 calendar days in 2016 ); 4 0.45% of all issues concerned the Company operations (3% more than in 2016).

customer relations – which is treated as a top-priority area.

Out of the 97 complaints filed against MPL, less than 16.49% were considered to be justified.

The complaints concerned: impolite/ unprofessional service, Wi-Fi,

photo Jacek Krawczyk

survey (20,315 votes), the least in the October survey on the food court in the public area (2,793 votes).

PASSENGER COMMENTS AND SUGGESTIONS COLLEC TION SYSTEM Since 2009, a special Comments and Suggestions Form has been available at Kraków Airport (in Polish and English). The paper form is available at the information desks, however, passengers can also fill out the

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baggage damaged during security checks, long queues for security check, imprecise information on information boards and Kraków Airport website, Kraków Airport Loyalty programme.

In addition, three complaints were received in 2017 concerning residents living in the restricted use area.

Comments that were qualified as “suggestions” (except for reports

2017

2016

Increase/Decrease 2017/2016 (%)

complaints

97

91

6.59%

suggestions

15

36

-58.33%

praises

13

18

-27.78%

Total

125

145

-13.79%

photo Jacek Krawczyk

Feedback concerning the Company operation

regarding items lost in the terminal) were usually questions about the reasons for flight cancellation by airlines. Passengers praised the Airport mostly for the high quality of provided services.

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photo Kraków Airport

KRAKÓW AIRPORT LOYALTY

PROGRAMME IN NUMBERS 13,800 members; 1,558 registered in 2017; 29 partners; 246 prizes (about 20 a month); 101 people reached the Prestige level; 875,100 points awarded; 350 messages a month; 6 newsletters sent to members; 350 – average number of messages from passengers a month.

Establishing long-term relationships with passengers also takes the form of a loyalty programme called Kraków Airport Loyalty (KAL); available to all Kraków Airport passengers who are at least 18 years old. Membership in the programme is free, and its members gain access to a Benefit Catalogue, the contents of which depend on the individual level of membership. Two levels are available in the programme: Kraków Airport Loyalty and Kraków Airport Loyalty Prestige. Programme members start at the basic level. Points collected for each departure from Kraków can be redeemed for prizes or for the higher programme level, Prestige.

Higher level means more benefits and larger discounts. The Benefit Catalogue includes, amongst others: discounts in shops, restaurants, Business Lounges and institutions,

access to FAST TRACK (Prestige level), and a special parking offer. Seven programme partners joined in 2017.

Hotels.com – one of the world's largest hotel booking services also joined, which was a huge success.

Kraków Airport is the first European airport to cooperate with Hotels.com.

The growing number of passengers undoubtedly means that the programme is attractive. The number of points awarded for departures from Kraków Airport grew again in 2017 (+31%) in comparison with the previous year, so did the number of prizes (+29%). The results prove that programme awareness and participation increases. Promotions (e.g. bonus points for new flights or during holidays) and competitions were held to increase programme attractiveness.

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COMMUNICATION WITH LOCAL COMMUNITY

The purpose of such meetings is to show details regarding the current activity of the airport, present the airport's investment plans for the coming years, including the plans for the construction of the new runway, but also to learn about the opinions and expectations of the local community, neighbours, representatives of local governments, institutions and non-governmental organizations on the impact of the airport on the daily lives of the local communities.

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In 2017 Kraków Airport conducted a series of open consultation and information meetings for residents of villages located near the airport (Aleksandrowice, Balice, Cholerzyn, Chrosna, Mników, Morawica, Rząska, Szczyglice). The meetings with representatives of local communities and businesses that had started in 2016 were continued. Altogether 20 meetings were held in 2017. Details concerning the planned investment projects were presented at the meetings in which more than 500 residents took part.

A questionnaire was prepared for the participants to allow them to evaluate the airport's activities and present their expectations. A new compensation programme for local communities was also consulted during the meetings.

The investment project website has a FAQ tab with replies to frequently asked questions. After the meetings in villages, there were also individual

meetings with people who needed a personal conversation to get further information.

An open information policy concerning the construction of the new runway limits the spread of misinformation about the project, thus minimizing fears and concerns of residents. As a result of the meetings, a new Close to the Airport programme was developed, the pilot stage of which was conducted only

photo Jacek Krawczyk

The specific nature of airport operation and the planned construction of a new runway arouse a lot of interest, but are also a reason for concern for the neighbours of Kraków Airport.

Therefore, on May 25, 2016, just two days after the announcement of the decision to build a new runway, the airport launched a wide information campaign and representatives of Kraków Airport commenced a dialogue with the representatives of the local community.

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3 months after the completion of the cycle of meetings 13 .

The effect of the dialogue is also the document Policy for the Reduction of the Acoustic Impact of the Kraków-Balice Airport (EPKK) on the Environment – a Company initiative involving inter-sector cooperation in order to improve the acoustic climate in the surroundings of the airport. The policy was a basis to create a pilot Programme for the Improvement of Acoustic Climate addressed to the residents of the restricted-use area 14 .

At the same time, the airport has begun publishing a periodical newsletter, which is sent by post to all residents of the 8 villages located closest to the airport.

The newsletter contains the most important information about the activity of the airport, proposals for cooperation, airport development plans, and information regarding the issues which may affect the immediate surroundings of the airport.

The recipients of the newsletter are invited to provide feedback.

Newsletter for neighbours:

MEE TING WITH LOCAL COMMUNIT Y 20 consultation and information meetings; 8 villages nearest the airport (Rząska, Szczyglice, Balice, Aleksandrowice, Chrosna, Morawica, Cholerzyn, Mników); more than 500 participants; Close to the Airport grant competition, Policy for the Reduction of the Acoustic Impact of the Kraków-Balice Airport (EPKK) on the Environment and Programme for the Improvement of Acoustic Climate.

INTERNATIONAL VOLUNTEER DAY AT KRAKÓW AIRPORT The International Volunteer Day, celebrated on 5th December, is an annual opportunity for Kraków Airport to summarize the airport's social activities and to thank the people involved.

As the year before, the International Volunteer Day at Kraków Airport was celebrated with a meeting attended by airport staff involved in volunteering activities, both as employees and individually, and by representatives of local organizations and institutions who were beneficiaries of nine editions of the Supporting our Neighbours competition. Almost 50 people took part in the meeting.

One of the items on the meeting agenda was a special workshop entitled How to promote social projects on the Internet. The workshop was prepared by Wzmacniacz Association wzmacniacz.org.

During the meeting, two airport employees, Tomasz and Bogdan, received a special prize from the President of Kraków Airport – a cheque for PLN 1,000 for a chosen public benefit organization. The award is in appreciation of their long-term involvement in airport life, initiatives making airport operations more efficient, making travel easier for passengers, including disabled people, helping colleagues at work, but also involvement in volunteering projects for people in need, local community, and voluntary blood donation.

For more on the pilot edition of the Close to the Airport competition please see the section Kraków Airport – a Responsible Neighbour.

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14

More in the section Environmental Protection.

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photo Tomasz Qna Chochół SPFL Air Action

COOPERATION WITH SPOTTERS

Fans of aviation can attend special meetings and photo sessions organised on a regular basis at the airport and in spotting places. Spotters are invited to important events at the airport, e.g. inauguration of a new route.

Representatives of spotter associations are also invited to participate in consulting and information meetings about the current operation of the airport and spotter places.

observation deck. The photos show the aircraft of carriers who, as of the opening day, operated from Kraków Airport. The authors of the photographs are members of EPKK Spotters Association and of Kraków Airport KRK/EPKK Fan Club.

Some photos in this report have been taken in cooperation with them.

An exhibition of spotters and aviation enthusiasts was opened in September 2017 on Kraków Airport's photo Marcin Jarosz

The development of social media opens up new possibilities, especially in terms of cooperating with spotters, photographers, and fans of aviation, who combine the love for photography with a fascination for aviation and travel. Kraków Airport cooperates with two associations: EPKK Spotters association and Air Action Association of Polish Air Photographers.

In addition, Kraków Airport cooperates with an informal group MPLB Spotters and Kraków Airport KRK/ EPKK Fan Club active on one of social networking sites.

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photo Kraków Airport

TENANT HANDBOOK

activity at Kraków Airport. The content of the tenant handbook is the same for all tenants, contributing to the policy of equal treatment of partners established in Kraków Airport. The handbook takes the form of an attachment to lease agreements, which allows each tenant to become familiar with its contents. This ensures transparency

and clear rules of cooperation for everyone. Moreover, the handbook is not only a definition of the rules and procedures for tenants, but it also presents the policies and values of Kraków Airport.

photo Kraków Airport

This is an example of a tool created specifically for a particular group of Kraków Airport stakeholders.

The information contained therein facilitates the daily functioning of the airport and helps in ongoing communication. The purpose of the handbook is to present the general rules and procedures, which apply to tenants and their commercial

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photo Łukasz Polus EPKK Spotters

Safety | 55

SAFETY

Sustainability Report

photo Kraków Airport

REGULATORY COMPLIANCE

Ensuring the safety of aviation operations and the safety of all users of airport infrastructure is the priority of any airport. There are a number of services at the airport that directly or indirectly contribute to security, so it is extremely important to maintain procedures and standards.

The correct operation of all services operating at the airport is supervised by the Airport Duty Officer 24 hours a day, 7 days a week.

The sense of security of Kraków Airport passengers in 2017 was rated at 4.27 out of 5 (an increase by 1.43% in comparison to 2016)15.

EUROPEAN CERTIFICATE FOR EPKK The current Airport Certificate number is PL/EPKK/001. The company also has the permit of the President of the Civil Aviation Office which grants the authorization to manage the Kraków-Balice civil airport, including all services related to take-off, landing and handling of aircraft, both in domestic and international traffic, rendered for airlines and other users of aircraft (Permit of the President of the Civil Aviation Office to run a business in the area of management of KrakówBalice public airport, Permit No. LER1 – KD–4020–26/07/5 of 21.06.2007).

The applicable regulations implement the latest standards and the best practices of the International Civil Aviation Organization (ICAO), and at the same time allow the adaptation of infrastructure

resources, procedures and investments to the actual needs of the airport, defined by the processed volume of air traffic and its characteristics. The certificates held by the airport help to further improve its credibility in the eyes of airlines.

AIRPORT SECURIT Y SERVICE Protection of persons, equipment and facilities against acts of unlawful interference is carried out in accordance with the applicable protection plan and the MPL Protection Programme (updated and approved in 2017 by the President of the CAO). In compliance with the requirements of aviation law and other legal acts, Airport Security Service shall provide an appropriate standard for the control of passenger traffic, cabin and check-in luggage on all domestic and international routes and the security

Data from surveys conducted by International Airports Council in 2017 at 317 airports all over the world, including Kraków Airport.

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check of airport personnel entering the restricted zone.

In cooperation with other security services, Airport Security Service ensure constant surveillance in the public areas of the airport, with particular attention to places sensitive to airport operation.

Kraków Airport has an Airport Protection Team, which includes representatives of institutions and key companies operating at the airport that have an impact on the security of air operations and the safety of all users of airport infrastructure.

Seven meetings of the Airport Protection Team were held in 2017.

described in that document facilitates the resumption any flight operations that were suspended as a result of an emergency. The document provides guidelines regarding the conditions and frequency of its verification and updating.

EMERGENC Y AC TION Kraków Airport has established an Emergency Action Plan (PDSZ). This document describes the actions to be taken in order to minimize the effects of emergency situations, especially relating to the saving of lives, the health of people, and the protection of property and the natural environment. The document describes, in detail, all available measures to be taken in order to eliminate emergency situations occurring at the airport or its operation zone. It also sets out the rules for notifying, directing and coordinating the work of services dealing with an emergency situation. Implementation of procedures

In addition a draft Plan of Assistance to Unaffected Persons and Their Families During an Aviation Accident on Kraków Airport was prepared in 2107.

As part of efforts to improve security, Kraków Airport was a partner of the 3rd European CYBERSEC Forum and the International Cybersecurity in Civil Aviation Conference in 2017.

photo Kraków Airport

In 2017, Kraków Airport was successfully audited by many institutions and external entities (i.e. NIK, CAO,

Police, US Transportation Security Administration and airline representatives) for compliance of aircraft and airport facilities protection procedures with applicable laws.

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photo Kraków Airport

KRAKÓW AIRPORT PERSONNEL TRAINING & EXERCISES

Regular training and exercises translate to increased safety. Training and exercises are required by national and international regulations and by the airport's internal procedures.

TRAINING OF AIRPORT SECURIT Y SERVICE The training process implemented by the Company Security Division is in accordance with the requirements of Civil Aviation Security, including the provisions of the National Training Programme. It includes a series of training courses intended not only for the employees of the Company but also for other entities operating at the airport.

The Airport Security Service is regularly trained in intervention and shooting techniques and the administration of first aid. The training also includes methods of security control, and their implementation, respecting

the religion, cultural diversity, and special needs of passengers with disabilities. 100% of SOL personnel take part in the training.

In 2017, representatives of the Security Division also took part in international workshops and conferences devoted to the issues of airport security perceived as an element of critical infrastructure, with particular emphasis placed on the topics of landside security and cyber threats and the use of new technologies as tools of illegal interference. In addition, representatives of the Security Division participated in workshops and seminars on adapting Polish solutions to the European laws on personal data protection. Within the security area, the Security Division cooperates on a regular basis with state administration (e.g. National Security Centre).

In addition, an exercise in explosives detection was organized and took place in 2017.

MORAWICA 2017 EXERCISE In September 2017, crisis exercises were carried out in accordance with the Emergency Action Plan procedures. The topic of the exercise was an air accident outside the airport's operating area. The aim of the exercise was to check the knowledge of crisis procedures and to verify the available resources ready to be used to eliminate any hazard. All MPL organizational units responsible for the implementation of the emergency procedures made a thorough review of the action plans, resources, equipment, and communications.

Personnel not directly involved in the implementation of emergency procedures took part in the exercise as extras playing the roles of people injured in the incident. In this way, participation in the exercise allowed everyone to familiarize themselves with the activities undertaken by the airport. Moreover, personnel playing

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the roles of the injured have an opportunity to comment on possible corrective actions.

TERMINAL 2017 EXERCISE

The exercise allowed the verification of the operating procedures of security services in case of an incident at the airport. The Terminal 2017 exercises were also an element of preparation of state services and Kraków Airport for major events that were held in Kraków last year (e.g. 41 st session of UNESCO World Heritage Committee, U-21 Football Championships or the Men's European Volleyball Championships).

In addition to the Airport Rescue and Firefighting Service and other Kraków Airport services, in the exercise participated: Municipal Firefighting Service in Kraków, Military Firefighting Service, Border Guard, Police, Customs Office, Polish Air Navigation Services, Provincial Crisis Management Centre, handling operators.

The two-hour long Terminal 2017 exercise was also participated by alumni from the Firefighter Officers School in Kraków who acted as extras.

photo Kraków Airport

The exercise involved a simulated fire in the luggage sorting plant in the passenger terminal. Evacuation of the whole facility was ordered.

According to the scenario, most people in the building left it on their own, while a few in the immediate vicinity of the fire had to be helped

by firefighters and specialist equipment was needed to free one person.

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photo Kraków Airport

AIRPORT RESCUE AND FIREFIGHTING SERVICE

mass events. Becoming a part of the National Rescue and Firefighting System allows Kraków Airport firefighters to provide assistance during actions taking place outside the airport.

Three vehicles are assigned for such outside emergency actions. Depending on the type of action, the LSR-G emergency centre decides which one of the vehicles should be deployed.

Kraków Airport has its own Airport Rescue and Firefighting Service (LSR-G). LSR-G firefighters keep watch over the safety of passengers at the airport and are always ready to act in case of an emergency outside of the airport.

LSR-G, as the only airport firefighting and rescue service in Poland, is a member of the National Rescue and Firefighting System, which brings together different emergency services that join forces during

In 2017, the firefighters received an award from the Anna Aero portal for a perfect water salute during PLL LOT's inaugural flight from Kraków to Chicago.

photo Jacek Krawczyk

LSR-G firefighters undergo regular training. Last year, a group of 12 LSR-G firefighters were trained in

airport rescue operation at a range in a training centre in England. In addition, comprehensive exercises were conducted in airport rescue operations and firefighting at the passenger terminal 16 .

4 8 - the number of times LSR-G firefighters were called to emergencies outside the airport, mainly on the A4 motorway, but also in the villages: Balice and Aleksandrowice;

they secured 9,908 fuelling operations of aircraft with passengers.

Described in detail in section Kraków Airport personnel training and exercises.

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photo Kraków Airport

FIRST AID

DEFIBRILL ATORS IN THE TERMINAL

Special devices which can be used to call for help in case of emergency at any time of the day are located in several places at the airport. By pressing a First Aid button, you can call the on duty paramedic team. The manual call points are marked in red.

There are six Automatic External Defibrillators (AED) at the airport.

These devices, capable of saving a person's life in case of a sudden cardiac arrest, can be found in the landside area (near both Airport Information points and at the security control point), in the airside zone (next to the Aelia store, and near the border guard posts in the non-Schengen zone), as well as in the VIP terminal.

Airport Medical Security Service is responsible for the medical safety of passengers, as well as for organizing various training sessions for Kraków Airport employees.

2 cases of AED use in 2017 , including one in which normal heart rhythm was restored as a result of defibrillation.

photo Kraków Airport

AUTOMATIC FIRST-AID CALL SYSTEM

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photo Sławomir Pawłowski

AIR INCIDENTS INVOLVING ANIMALS

A comprehensive review of the airport and its surroundings for animal hazards to air operations was held in 2017 as a part of the Environmental Impact Report for the Construction of a Runway at Kraków-Balice Airport. The review was carried out based, inter alia, on radar surveillance of bird migration along with probability analysis of an aviation accident caused by birds during spring and autumn migrations.

birds). Due to an even distribution of collision risk, no increased risk areas were delimited (so-called “hot spots”) or special collision prevention procedures established.

It was established that on Kraków Airport bird migration includes more than 100 thousand birds a day (spring) to even more than 200 thousand a day (autumn), of which large species (white stork, geese, cormorants) account for less than 1% of all recorded migration routes in the area of about 6 km from the airport. The vast majority of migration routes (more than 90%) are those of small species flying at night (from 58% to 80% of all recorded migration routes of these groups of

The height of grass is maintained at a level allowing good visibility of navigation aids and preventing blooming and growth of seed and fruit. Mowing in the area of the runway and landing approach, which increases the activity of birds, is performed at night.

The basic method of limiting the birds population in the airport area is biological protection with the use of predatory birds (falcon method) and hunting dogs, performed by a specialist contractor.

The analysis of the number and effects of air incidents involving birds and other animals in 2017 showed a significant decrease in the number of collisions with animals

compared to 2016 and a return to the level from the previous 10 years.

Safety factor in 2017: 8.6 out of 10,000 flight operations17.

Altogether, 40 incidents involving birds and animals were recorded in 2017. No aircraft damage was recorded as a result of collisions with animals and the recorded incidents did not significantly affect air operations safety, nor cause significant delays or difficulties.

The situation was also improved by the completion of construction works that had been ongoing during the last 3 years; these had significantly disturbed environmental conditions (excavations, earth heaps, temporary stagnant water pools, structures, uncontrolled vegetation, etc.), increasing attractiveness of The collision rate used as a safety target is 10 collisions per 10,000 air operations.

17

G4-14, A09

photo Łukasz Polus EPKK Spotters

Safety | 63

so do collisions with kestrels and buzzards. As the smallest birds (e.g wagtails) are not a big hazard for aircraft, we should focus on the elimination of hazards from kestrels and buzzards by limiting their food sources.

the area to birds. As predicted, the demolition of an inactive sanitary aviation hangar in 2017, in which swallows nested, also limited the number of collisions.

White Wagtail activity continues,

BIRD COLL SION RATE 20 16 12 8 4

2007

2008

2009

G4-14, A09

2010

2011

2012

2013

2014

2015

2016

2017

Sustainability Report

photo Wojciech Adamowski

WINTER SERVICES

March. It is a period of hard work for surface maintenance and other services.

Preparations for the Winter Services start almost immediately after the end of the winter season. The period from late spring to mid-October is

used for repairs and maintenance of machinery used for winter airport maintenance. The preparation of airport surface for winter is performed also during that period. Most work is performed by Kraków Airport staff.

photo Kraków Airport

Winter Services in Kraków Airport is 24-hour maintenance of runway, taxiway and apron. Good preparation and execution of the Winter Services is paramount for assuring safe takeoffs and landings. The winter season at Kraków Airport starts at the turn of October and lasts till the end of

Trials before the 2016/2017 winter season:

G4-14

Environmental protection | 65

photo Sławomir Pawłowski

ENVIRONMENTAL PROTECTION

photo Jacek Krawczyk

Sustainability Report

While performing its business activities, Kraków Airport respects the principles of sustainable development to help preserve the natural surroundings of the airport. The actions undertaken by the airport in this regard include: expansion of the programme of selective waste collection in the airport area; implementation of the programme of continuous recovery of recyclable materials from waste generated by the airport; implementation of energy-saving solutions in new projects and the modernization of existing facilities; all activities aimed at raising pro-ecological awareness among employees.

Kraków Airport carries out various activities related to: noise protection (e.g. continuous monitoring of noise levels, implementation of anti-noise procedures – in cooperation with external entities, implementation

of new programmes and solutions to limit the airport's acoustic impact); air quality protection (e.g. monitoring of the amount of gas or combustion dust entering the air, and all measures aimed at maintaining the proper functioning of machines and devices in terms of effective reduction of emissions); rational management of hazardous and non-hazardous waste (including the quantitative and qualitative monitoring of generated waste, reduction of waste generation at the most common sources, establishing a new waste collection site, equipping the places with the highest waste-generation potential using appropriate environmental protection devices, etc.);

monitoring of water consumption and sewage dumping into groundwater and / or soil, implementation of anti-pollution protective measures in the rainwater drainage system, etc.); sustainable management of green areas (e.g. qualitative and quantitative monitoring of wooded and green areas, cleaning and maintenance work, etc.).

In order to increase the awareness of airport employees of environmental issues, special information and educational campaigns in the field of environmental protection are held. The airport’s intranet is the primary source of information in this regard.

rational water and sewage management (for example, by means of qualitative and quantitative

G4-DMA

Environmental protection | 67

In accordance with the adopted runway construction schedule 18 the Natural Resource Inventory that had begun in 2016 was completed in 2017.

The results were used to prepare the environmental impact report for the project. The report is a document aiming to analyse the project impact on the environment along with all forms of protection, human life and

photo Shutterstock

NATURAL RESOURCE INVENTORY health and property. In late 2017 the report was submitted to the Regional Environmental Protection Directorate in Kraków (RDOŚ). It is a technical and nature-related document which is an appendix to the application for the decision on environmental conditions for the project Construction of a New Runway on Kraków-Balice Airport.

photo Shutterstock

ECONOMIC USE OF NATURAL ENVIRONMENT Waste management carried out at Kraków Airport involves keeping records, including reporting for both internal and official purposes, which is enforced by the statutory duty.

Kraków Airport creates reports on the economical use of the environment, i.e. on the amount of waste generated, as well as mandatory reports informing about the emissions of gases or dust into the air as a result of combustion processes in internal

For more about the project see section Kraków Airport 2036.

18

G4-DMA

combustion engines, emissions of gases or dust into the air as a result of operation of gas-fuel-powered boilers, water consumption, or the amount of waste-water entering the groundwater. On the basis of the submitted reports, Kraków Airport pays all the fees, as required by law, to the account of the Marshal's Office of the Małopolskie Voivodeship in Kraków.

Sustainability Report

photo Shutterstock

HAZARDOUS AND NON-HAZARDOUS WASTE MANAGEMENT

Kraków Airport is highly concerned with the efficiency of the process of waste segregation and minimizing the amount of generated waste.

The company also puts emphasis on the recovery of waste, mainly by means of recycling of paper and cardboard packaging, thus reducing the amount of generated municipal waste. Recycled paper and cardboard packaging are valuable recyclable materials. Municipal, post-consumption waste continues to be the most commonly generated type of waste at the Airport.

Muinicipal waste in 2017: 8,448 m³.

In order to systematize waste management-related activities, Kraków

Airport has created detailed internal instructions which set out the procedures for dealing with hazardous and non-hazardous waste. The activities focusing on proper waste segregation, which have been implemented and carried out for several years, proved to be not only an economically viable concept, which allowed to generate additional financial resources by selling the generated waste to external entities, but more importantly, it also improved the environmental awareness of our employees.

Regular preventive inspections of storage places for hazardous and non-hazardous waste at Kraków Airport allowed us to identify the areas requiring corrective and also educational actions.

REC YCLING: 52 t of paper and cardboard waste (10 t more than in 2016); 2.6

t of plastic;

1.7

t of metal;

0.8

t of glass19;

18,282.25 zł – profit from the sale of paper and cardboard waste (the whole amount was given to charity; to Alma Spei children's hospice and St Lazarus hospice); 14,000 zł – savings generated as a result of recycling (reduced amount of municipal waste).

19 Records of segregated plastic, metal and glass waste have been kept since 2017

G4-DMA, G4-14, G4-EN23

Environmental protection | 69

HAZARDOUS AND NON-HAZARDOUS WASTE GENERATED IN 20­1 7 20

No.

Waste code

Waste type

Amount of generated waste [Mg]

1.

16 06 05

Other batteries and lead batteries

0.006

2.

16 01 18

Non-ferrous metals

0.003

3.

15 01 10*

Packaging containing residues of or contaminated by dangerous substances

0.046

4

15 02 02*

Absorbents, filter materials (including oil filters not otherwise specified), wiping cloths, protective clothing contaminated by dangerous substances

0.024

5.

15 02 03

Absorbents, filter materials, wiping cloths and protective clothing other than those mentioned in 15 02 02

0.036

6.

16 01 07*

Oil filters and fuel filters

0.089

7.

15 01 01

Paper and cardboard packaging

52.235

8

16 01 19

Plastic materials

0.065

9.

16 02 13*

Worn out devices containing dangerous elements, other than those mentioned in 16 02 06 to 16 02 12

0.073

10.

16 02 14

Worn out devices, other than those mentioned in 16 02 09 to 16 02 13

3.532

11.

16 06 02*

Batteries and rechargeable Ni-Cd batteries

0.096

12

16 06 01*

Batteries and lead-acid batteries

5.187

13

17 01 01

Concrete

0.360

14.

17 01 17

Mixed concrete, debris

0.360

15

16 01 03

Worn tyres

1.114

16

16 01 17

Ferrous metals

1.033

17.

16 02 16

Elements removed from worn machines, other than those specified in 16 02 15

0.097

18

16 06 04

Alkaline batteries

0.044

19

17 02 03

Plastic materials

0.001

20

17 04 11

Waste from construction, renovation and demolition of building and road infrastructure, including soil from contaminated areas

0.310

21.

18 01 09

Medicines

0.010

22

17 04 05

Iron and steel

1.262

The table was created in compliance with the Waste Catalogue and the List of Hazardous Waste (Journal of Laws No. 112, item 1206, Regulation of the Minister of Environment of September 27, 2001 regarding the Waste Catalogue, pursuant to Art. 4 para. 1 point 1 of the Act of April 27, 2001 on waste, Journal of Laws No. 62, item 628). Asterisk “*” next to the waste type code stands for: Hazardous waste.

20

G4-EN23

Sustainability Report

photo Jacek Krawczyk

AIR QUALITY

heating boilers on natural gas; mechanical ventilation installations; passenger cars, specialized vehicles, power generators, motor vehicles, other means of road transport, other devices.

In addition, the emissions of gases and dust at the airport can be attributed to the airlines (aircraft, state administration services, handling agents, cleaning companies, transport and parking-related services, air-fuel supply and delivery).

The above-mentioned entities comply with national law and implement its provisions on their own.

Pursuant to the Act of May 15, 2015, on substances that deplete the ozone layer and on various fluorinated greenhouse gases, the Company

was obliged to register devices containing these substances in the Central Register of Operators of the Institute of Industrial Chemistry in Warsaw. Currently, 64 devices, which are subject to the guidelines of the above-mentioned Act, are registered at CRO.

AMOUNT OF FUEL CONSUMED IN 2017:

The total environmental fee in 2017 was PLN 59,656.00.

Kraków Airport applies special modifications to the employed devices, equipment and vehicles for the purpose of reducing the negative impact on the environment. An example of such activity is the purchase of six hybrid cars for ground air traffic coordinators.

Diesel – 78,792.22 litres; Euro 95 Pb – 45,162.16 litres; Natural gas – 1,125,481 m 3.

photo Sławomir Pawłowski

There are many potential sources of air pollution at the airport:

Kraków Airport has implemented a procedure of systematic registration of gas and dust emissions generated as a result of fuel combustion processes in combustion engines of vehicles. The procedure consists of official reporting in connection with the statutory obligation and the obligation to pay related fees to the account of the Marshal's Office of the Małopolskie Voivodeship in Kraków.

G4-DMA, G4-EN15, G4-EN19

Environmental protection | 71

HYBRID CARS

photo Łukasz Stawiarz EPKK Spotters

Pursuant to applicable regulations the cars of ground air traffic coordinators must be running all the time (they operate about 20 hours a day, sometimes idling). Thus, in order to minimize the negative environmental impact (reduced fuel consumption, emission of greenhouse gases and noise) in August 2017 six hybrid cars were bought for ground air traffic coordinators, the so-called marshals.

An important aspect in choosing new cars was also the absence of parts that frequently fail in traditional vehicles (alternator, starter).

A hybrid can drive noiselessly on the electric motor and does not emit pollutants to the atmosphere. The purchase of hybrid cars reduced fuel consumption, emission of greenhouse gases and noise. The purchase

of new cars is a part of Kraków Airport's CSR Strategy for 2016-2018 in which the environmental part provides for using energy-saving solutions at the investment project stage.

FUEL CONSUMPTION COMPARISON

Month

Consumption 2016 / 5 internal combustion cars

Consumption 2017 / 5 hybrid cars

September

1,397.94 l

642.04 l

October

1,440.22 l

650.79 l

November

1,342.00 l

695.70 l

December

1,425.61 l

770.98 l

Video about hybrid cars:

G4-DMA, G4-EN15, G4-EN19

Sustainability Report

photo Jacek Krawczyk

NOISE MANAGEMENT

Air operations, i.e. flights, takeoffs, landings and aircraft ground operations are the primary sources of noise. The largest number of air operations take place in summer.

Areas located within those special zones are subject to certain restrictions regarding their use and development.

Because permissible levels of sound intensity in the environment have been exceeded, by virtue of the resolution of the regional council of the Małopolskie Voivodship No. XXXII/470/09 of May 25, 2009, a restricted-use area was established around Kraków-Balice airport.

This area is divided into three zones with the following designations: A, B and C.

MITIGATION OF AIRCRAF T NOISE

reduction procedures appropriate for the type of aircraft in use. In the absence of applicable noise reduction procedures adapted to a particular type of aircraft, it is recommended that the departures are performed following the generic noise reduction procedures for ascending aircrafts, in accordance with the annexe to ICAO Doc 8168 Chapter 3 Procedures for Air Navigation Services – Aircraft Operations, Volume I – Flight procedures, part I, section 7;

In order to limit the propagation of aircraft noise at Kraków-Balice airport, several noise reduction procedures have been implemented: Aircraft operators performing air operations at Kraków-Balice airport should apply noise

After take-off, aircraft should climb along the axis of the runway

Surface area of RUA / Zones

m²

Range of RUAs and Zones

km

Limited Use Area

7,635,855

Limited Use Area

5.6 (E) and 4.3 (W)

zone A

844,807

zone A

1.6 (E) and 0.8 (W)

zone B

4,490,625

zone B

4.25 (E) and 3.7(W)

zone C

2,260,423

zone C

5.6 (E) and 4.3 (W)21

21

Letters E and W mean east and west, respectively

G4-DMA, A07

Environmental protection | 73

Zone

Zone parameters

Restrictions and rules of use for the Zone

A

Area between the borders of the area managed by MPL and the line at the level of which the noise level is L N = 50 dB or L DWN = 60 dB

It is forbidden to use the designated area for the construction of single – and multi-family housing, or homestead housing;

(RWY), as far as practicable, until reaching the altitude of 600 m, then make a turn after getting permission from the control services; Continuous Descent Approach (CDA) – on approach to landing, the aircraft descends from the optimum position with a minimum thrust and avoids a steady flight at the same altitude without compromising the safe operation of the aircraft. The purpose of the CDA technique is to provide the aircraft crew suitable conditions to optimize the aircraft's landing approach profile, and in turn to reduce the impact of aircraft noise on the ground, and reduce fuel consumption and atmospheric emissions as much as possible;

It is forbidden to establish recreation-related buildings outside of the urban area; Regardless of the current function of this area, the construction of single – and multi-family housing or homestead housing is forbidden; The use of the already existing single – and multi-family housing or homestead housing is only permissible in compliance with construction conditions compliant with noise standards for the inside of the building; It is forbidden to build hospitals, care-homes, or other facilities intended for permanent or long-term stay of children and adolescents in the area; It is forbidden to change the status of non-residential buildings to residential buildings.

B

C

Area between the outer border of Zone A and the line at the level of which the long-term noise level is L DWN = 55 dB

It is forbidden to build hospitals, care-homes, or other facilities intended for permanent or long-term stay of children and adolescents in the area;

Area between the border of Zone B and the line at the level of which the noise level is L N = 45 dB

It is permissible to use the currently existing facilities intended for the long-term stay of children and adolescents who will not be present at the premises during night time (schools without dormitories, youth hostels, summer camps, etc.)

It is permissible to use the existing facilities related to a long-term stay of children and adolescents who will not be present in the premises during night time (schools without dormitories, youth hostels, summer camps, etc.), while ensuring the required acoustic comfort inside the premises, and the access for children and adolescents to sports grounds during the regular daily class-time.

AIRCRAF T NOISE MONITORING SYSTEM Throughout 2017, the aircraft noise levels in the area surrounding Kraków-Balice airport were continuously monitored by a PCA-accredited test lab at the request of the Airport Manager. The noise monitoring system has been expanded to include five measurement points in the following locations

Measurement point

Location

Distance from the centre of runway ARP [m]

Kk-P-01

Morawica

2,380

Kk-P-02

Balice, ul. Spacerowa

2,240

KK-P-03

Kraków, ul. Na Nowinach

5,160

KK-P-04

Kraków, ul. Jordanowska

9,400

KK-P-05

Czułów

6,381

G4-DMA, A07

Monthly reports on the results of aeronautical noise surveys conducted around Kraków-Balice airport are sent by the MPL Company to the Inspector for Environmental Protection of the Małopolskie Voivodeship, and to the Marshal of the Małopolskie Voivodeship.

Sustainability Report

Restrictions between 10:00 PM and 6:00 AM: from sunset to sunrise approaches with visibility on RWY 07 are not permitted. Between 10:00 PM and 6:00 AM TWR does not permit approaches with visibility on RWY 25.

LIMITING THE ACOUSTIC IMPAC T OF KRAKÓW-BALICE (EPKK) AIRPORT ON THE ENVIRONMENT The document Policy for the Reduction of the Acoustic Impact of the Kraków-Balice Airport (EPKK) on the Environment was adopted in 2017.

It is an initiative of the civil user of Kraków-Balice (EPKK) airport involving inter-sector cooperation in order to improve the acoustic climate for areas in the airport surroundings. The adoption of the document is a result of dialogue with the residents of villages neighbouring the airport.

A non-inclusive set of actions and guidelines aiming at the reduction of Kraków-Balice's environmental impact (actions result from both laws, and voluntary initiatives of Kraków Airport); The mission of the document is an inter-sector/ inter-institution cooperation in order to improve the acoustic climate for areas surrounding Kraków-Balice airport; It forms a basis for programmes and initiatives addressed to the residents of the Restricted-Use Area aiming at reducing the noise impact of Kraków-Balice airport.

The programmes for acoustic climate improvement in the airport surroundings initiated in 2017 based on the Policy for the Reduction of the Acoustic Impact of the Kraków-Balice Airport (EPKK) on the Environment.

Pilot Programme for the Improvement of Acoustic Climate addressed to residents of the Restricted-Use Area. The priority of the initiative was to financially support the application of materials with increased sound insulation in houses and flats in which environmental quality standards were not kept. The initiative involves cooperation with the Provincial Environmental Protection and Water Management Fund; A partnership programme of Kraków Airport and local governments from the area of the airport for acoustic climate improvement.

Kraków Airport invited representatives of voivodeship, county and communes located around the airport.

Link to document:

G4-DMA, G4-15

Environmental protection | 75

Kraków Airport sources drinking water from the pipeline of the Municipal Services Company in Zabierzów.

The airport also has a reserve water source in the form of two deepwater wells. Unfortunately, due to poor water parameters of this water, in particular the excessive concentrations of iron and manganese, it is necessary to perform water treatment until achieving parameters acceptable for consumption. Therefore, a water treatment station and a pressure booster station operate at Kraków Airport. The water treatment plant (SUW) ensures the proper parameters of drinking water.

Both the water from the municipal supply system and the treated water is directed from the pressure booster building to the buffer tank, from which it is moved back, with its pressure increased and stabilised by means of the so-called pressure booster set, and pressed back into the buildings via Kraków Airport's internal water supply system. An adequate dose of a water disinfectant is dispensed by a chlorine dioxide generator. All processes are controlled automatically.

WATER CONSUMPTION IN 2017: Water supply system

33,993 m³

Deep water wells

37,176 m³

Military area (supply to LSR-G and PKB)

1,334.5 m³

Total water consumption

72,503.5 m³

G4-DMA, G4-EN8, G4-EN22, A04

photo Kraków Airport

WATER AND WASTEWATER MANAGEMENT The discharging of rain and thaw water from the areas of the KrakówBalice airport (EPKK) is an essential factor which enables its everyday uninterrupted use, modernization and development.

So far, the only natural place available for the discharge of rainwater from the airport is Potok Olszanicki (Olszanicki Stream), which runs partially through the area of the airport and serves as an intercepting sewer. Rainwater and thaw water are discharged from the airport area by means of a sealed rainwater sewage system; equipped with environmental protection devices (pre-treatment tanks, retention reservoirs, etc.), in compliance with the applicable water permits.

The water discharged via the sewage system is subject to continuous quantitative monitoring, with the option of remote control over the discharge direction, and periodic qualitative monitoring. This is to protect surface water and soil, as well as to counteract the excessive discharge of water from the airport in case of excessive atmospheric precipitation. An alternative surface runoff discharge system is being built within the airport expansion programme. At the same time, works are underway to install water quality and quantity metering at the “entry” of Potok Olszanicki to the airport for actual control of water flowing into the airport from areas not owned by MPL. Taking into account the growing number of air operations, the

Company is taking action to protect Potok Olszanicki against an increased charge of pollutants from the airport by means of selecting an effective technology and a favourable organization of work.

71,531 m³ – total wastewater volume in 2017.

Pursuant to the valid administrative decision, Kraków Airport is allowed to take further organizational and technical measures to protect the aquatic and terrestrial environment.

The Company is not responsible for the de-icing of aircraft. Two handling companies operating at Kraków Airport can perform de-icing work at the request of airlines operating at Kraków Airport.

Sustainability Report

photo Sławomir Pawłowski

GREENERY MANAGEMENT

but also the provisions of aviation law regarding the maintenance of operational safety directly in the area of the airport and its vicinity.

The specific character of the area of Kraków-Balice airport (EPKK) and of its neighbourhood requires a balanced approach to issues related to wooded and green areas.

The primary tasks in this regard include arboricultural care of trees and shrubs in the context of ensuring the safety of human life and health, property, phytosanitary safety, and the removal of obstacles endangering proper and safe air traffic.

photo Damian Szymula

Kraków Airport continuously performs tasks consisting in the shaping of dendroflora, while taking into account the applicable provisions of the Act on Nature Conservation, good practices of use of greenery,

Those activities also include periodical compensation plantings of trees and shrubs in the area of the Airport or in its vicinity. Last year, we managed to plant hundreds of new trees of species best suited to the present habitat conditions.

G4-DMA

Kraków Airport Employees | 77

photo Kraków Airport

KRAKÓW AIRPORT EMPLOYEES

Sustainability Report

photo Kraków Airport

EMPLOYMENT DATA

About 5 thousand people are employed at Kraków Airport, of which 654 were employed by the MPL Company in 2017. The level of employment at the airport and directly at the Company managing the civil part of the airport proves just how complex an airport is.

The main objective of the Company in the area of human capital management in 2016 was to provide its employees with good working conditions, which would help them with their professional development, and

654 employees (649.48 full-time jobs) – MPL employment level as of 31.12.2017 ; 6 40.78 employees (635.70 full-time jobs) – average MPL employment level in 2017; 30% women among employees;

a set of additional benefits, including social benefit programmes. A crucial part of the personnel strategy was the improvement of professional skills of employees and maintaining high working standards.

In 2017, using financing from the National Training Fund, 72 MPL employees took part in training or started postgraduate courses worth PLN 116,950, of which the NTF financing accounted for PLN 93,560, and the Company contribution was PLN 23,390.

4 2.11% in senior managerial positions; 0.76% disabled people among employees; 39.4 years – average employee age; 94.7% of senior managerial

In addition to salary, the following types of benefits were available in 2017: medical care in private medical facilities, co-funding of vaccinations against seasonal flu; training/improving professional and language skills, co-financing of post-graduate studies; co-financing of sport and leisure activities, sports cards for employees and their families;

positions are held by residents of Małopolska (of which as many as 78.9% live in the nearest airport vicinity, that is in Zabierzów, Liszki, Wielka Wieś, Michałowice and in Kraków municipality); 4,884 training hours during the year (which is 7.46 h per employee).

G4-9, G4-10, G4-11, G4-EC6, G4-LA1, G4-LA2, G4-LA9

Kraków Airport Employees | 79

AVERAGE EMPLOYMENT AT MPL BROKEN DOWN INTO PHYSICAL OPERATIVES AND OFFICE STAFF Physical operatives

385.04 people

Office staff

255.70 people

TOTAL NUMBER OF EMPLOYEES BY T YPE OF EMPLOYMENT AND GENDER

TOTAL NUMBER OF NEW EMPLOYEES AND EMPLOYMENT RATE INCLUDING THE T YPE OF EMPLOYMENT, AGE GROUP, GENDER AND REGION

Working hours

Total

Women

Men

Full-time

644

190

454

Part-time

10

7

3

Total

654

197

457

Number of employees

Total

Women

Men

Group: 30 years old or younger

39

19

20

Group: 30 to 50 years old

25

8

17

Type of employment contract

Total

Women

Men

Group: 50 years old and older

3

0

3

Trial period

13

7

6

Residents of Małopolska

65

26

39

Fixed period

106

46

60

Indefinite period

535

143

392

Employee turnover

Total

Women

Men

Group: 30 years old or younger

10

6

4

Type of employment

Total

Women

Men

Group: 30 to 50 years old

9

8

1

Civil law contracts

28

20

8

Group: 50 years old and older

4

2

2

Self-employed

0

0

0

Residents of Małopolska

21

15

6

Supervised employees

654

197

457

Region / Voivodeship

Total

Women

Men

Lubelskie

1

0

1

Mazowieckie

2

2

0

Dolnośląskie

1

0

1

Podkarpackie

4

2

2

Świętokrzyskie

7

0

7

Śląskie

12

5

7

Małopolskie

627

188

439

PERCENTAGE OF EMPLOYEES EMPLOYED UNDER A COLLEC TIVE AGREEMENT Number of employees

Number of people

Percent

Employed under an employment contract

654

94.92%

Employees partially included in the CCLA

7

1.02%

Civil law contracts

28

4.06%

Total

689

tickets for cultural events: opera, theatre, concerts, exhibitions; various team-building parties and events (Children's' Day, training and team-building event with a charity collection for local schools); Christmas presents for children,

G4-DMA, G4-10, G4-11, G4-EC6, G4-LA1, G4-LA2

theatre performance on St. Nicholas Day, English classes for children during summer vacation; uniforms and work clothing; free car park near the airport.

The Company's Social Benefits Fund is a form of social assistance for

those employees who are in need of support (in the form of an allowance), i.e. have a difficult financial or health situation. The fund is available for all employees and covers house loans, co-financing of vacation for employees and their children.

The Employee Council and the Inter-Company Commission No. 1725

Sustainability Report

of the NSZZ “Solidarność” trade union are both active in the Company. An example of cooperation and dialogue between the Company's Management Board and the trade unions is an agreement signed in 2017 regarding the wage growth rate.

The Company also employs a Social Labour Inspector, elected for 20152019 during the election in 2015.

The Company maintains a continuous information policy for employees regarding the Company's activities in terms of investments, current working conditions and employees' rights; executed by means of intranet and mailing available to all employees, as well as in the form of meetings of the Board with the management staff.

ANTI-BULLYING AND HARASSMENT POLIC Y An anti-bullying and harassment policy was introduced in 2017 in order to ensure a friendly working atmosphere and prevent bullying and discrimination. The policy defines the responsibilities of the employer, supervisors and employees, includes rules of prevention and response to behaviours negatively affecting employees. An important part of the policy is the procedure allowing each employee to speak up when they

feel they are subject to bullying and harassment or see such behaviour.

No cases of bullying and harassment or discrimination were recorded in 2017.

The adoption of that document is also a result of the Airport's CSR Strategy for 2016-2018 adopted by Kraków Airport's Management Board.

REGISTER OF WORK ACCIDENTS Every year, the Company is obliged to submit a report to the Social Security Institution, containing information on the number of accidents at work which occurred in the previous year.

As of 31 December 2017, the Company employed 654 people, including 197 women and 457 men. Eight accidents at work took place in 2017 (5 more than in 2016), in which employees working in shift system were affected. The accidents were classified as: individual, light, causing temporary inability to work (injury type: knee joint injury – 4 cases; humeral bone neck fracture – 1 case; wrist strain – 1 case; ankle injury – 1 case; head injury – 1 case). No fatal or serious accidents were reported. No cases of occupational diseases were reported in 2017, either.

Accidents at work are reported by the injured employee's supervisor or by the injured person, providing that their health condition allows it.

After preparing the notification, in accordance with the applicable provisions of accident documentation and approval of the post-accident report by the Management Board of the Company, the accident (along with all relevant information) is then registered in the “Register of Work Accidents”. Since the Company has not yet had any cases of occupational diseases, nor are there any suspicions regarding the presence of any cases of such diseases – no relevant register is kept.

A programme of organizational and technical actions approved by the Management Board was implemented in order to limit the exposure to noise and mechanical vibration at workplaces where such hazards exist.

The company has a health and safety committee consisting of 7 persons, including 3 employee representatives, which at the end of 2016 amounted to 0.46% of the entire staff.

0.29% – the percentage of working days lost, i.e. the percentage of days of absence at work as a result of accidents at work and occupational diseases, resulting in employees taking sick leave; 22

Because of different working time systems for various departments and employees of the Company, the Working Days Lost rate, as defined in G4-LA6, was calculated by converting the working days to working hours, in relation to the total number of expected working hours for all employees of the Company in 2016.

22

1 5.63% – absence rate: the number of days missed at work relative to the number of scheduled days at work in a given period of time; 1 accident per 130,662 hours worked by the Company's employees in 2017 – accident rate23.

23 Accident rate is the frequency of occurrence of accidents in relation to the total number of worked hours of the entire team of employees of the Company during the period.

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Kraków Airport Employees | 81

photo Michał Nowak

STUDENT INTERNSHIP PROGRAMME NEED HELP

The Need Help internship programme was started in 2007 and has been organised every year since then.

During the 1 month-long internship students work at the Need Help service, the purpose of which is to provide assistance to passengers at the airport.

This is probably the best way for the participants to quickly learn about the complexity of the airport. During a period of four weeks, the trainees will learn about the topography of the airport, its security rules, tasks of each service, and the daily functioning of the airport. After acquiring the necessary knowledge, participants of

11 th edition of the Need Help internship programme; 36 participants.

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the programme take part in practical tasks. The Need Help programme is very popular among students, which is reflected in the statistics – 472 trainees have participated to date.

After completing the programme, the best students will receive a job offer. In addition to Kraków Airport, its partners, including airlines, also benefit from the experience and skills acquired by the interns. The organizations that have hired the interns include: handling companies, daughter companies, airlines: easyJet, Emirates Airlines and Qatar Airways, as well as the Polish Air Navigation Services Agency.

The programme was acknowledged in the report of the Responsible Business Forum Responsible Business in Poland. Good Practices in the subcategory Creation of Jobs and Development of Competence.

In addition to the Need Help programme, 30 people participated in practical vocational training at Kraków Airport. Kraków Airport took part in Job Fairs and developed cooperation with Career Offices at Kraków Universities.

Sustainability Report

photo Kraków Airport

EMPLOYEE ENGAGEMENT

The year 2018 included the 2nd edition of the We Support Volunteers grant competition. The competition is part of Kraków Airport's employee volunteering program, which was prepared following the CSR of Kraków Airport for 2016-2018. The competition is designed to support the pro-social activities of employees who devote their free time and energy, and use their skills to help others.

2nd edition of the “We Support Volunteers” competition 12 received ideas; 5 implemented projects; 20 involved volunteers.

The goal of the competition is to award a grant to the best projects of the employees of Kraków Airport – projects that are intended to help people in the care of public institutions or non-governmental organizations. The maximum grant amount is PLN 5,000 The evaluation is based on the criteria set out in the competition regulations, and is performed by the Competition Commission.

In 2017, the employees who implemented their projects within the 1 st edition of the We Support Volunteers 2016 competition received an extra vacation day, a so-called Volunteer Day.

took place until December 2017, the employees of Kraków Airport donated almost 300 litres of blood (only in 2017, 65 people donated 29.25 litres of blood).

Jurek, who has donated more than 38 litres of blood, is the most distinguished member of the club and has received the Honorary Donor – Distinguished for Nation's Health medal from the Minister of Health.

The remaining club members have

photo Kraków Airport

WE SUPPORT VOLUNTEERS – GRANT COMPE TITION

HONORARY BLOOD DONOR'S CLUB RH WINGS AT KRAKÓW AIRPORT In October 2011, the Honorary PCK Blood Donor Club Rh Wings was established at Kraków Airport. In regular blood donations, 25 of which

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Kraków Airport Employees | 83

also repeatedly received bronze Distinguished Blood Donor medals from the regional Polish Red Cross. Among the club members there are also potential marrow donors registered in the DKMS Foundation database.

Christmas presents have included toys, school equipment, cleaning products, food, bed linen, footwear, a children's bicycle, an oil heater, a double armchair, a chest of drawers and a freezer.

CHRISTMAS HELP FOR COLLEAGUES

COLLEC TION FOR HOMELESS ANIMAL S

For the past three years, our employees have been holding a Christmas charity action for those families of some Kraków Airport employees who are in a difficult situation. Eligible families are indicated by the Company's Social Benefits Commission.

Families remain anonymous, and the only information revealed is the age and gender of children and a list of the needs of their families.

To help homeless animals, employees of Kraków Airport made the following donations to the Homeless Animals Shelter in Kraków:

blankets, duvets, beds; accessories (leashes, collars);

11 action coordinators; PLN 5,337.66 – collected amount; 44 Christmas gift packs.

Volunteers collected money and gifts for 10 days. The collected money was used to buy equipment and articles necessary for everyday life, and also presents for children. The packed

Kraków Airport received a Great Heart Certificate in return for the help.

KRAKÓW AIRPORT GROOV Y LIBRARY The idea of a place where each employee may bring a book, exchange it for another one, read during a break, borrow for the weekend, or take it forever, was initiated and implemented by Kraków Airport employees in 2017.

Before the Kraków Airport Groovy Library was established, an official competition for the name was held among employees. The library is

Kraków Airport employees participated in Kraków City Hall's pilot campaign CYCLE TO WORK aimed at encouraging employees of Kraków companies and institutions to use bicycles (own or rented) to ride to work and back home every day.

During the five months of the campaign, 10 Kraków Airport employees rode the distance of 4,594.4 km.

photo Shutterstock

10 days of collection;

C YCLE TO WORK CAMPAIGN

145 kg of feed;

dog treats.

3 families;

located in an area accessible to all airport staff. Now it has a few hundred books, and the number is still growing. There is a constant turnover of books and every day new items can be found, from children's books to classical literature, documentaries, science-fiction, best sellers, interesting atlases and albums. A reader zone has been arranged near the racks where you can sit comfortably and read.

Once again, Kraków Airport employees participated in the charity Kraków Business Run to help people with a motor disability.

the Great Orchestra of Christmas Charity, Wings for Life.

The Kraków Airport team do not limit themselves to just running.

To diversify their workouts, they try mountaineering, ski-tours and climbing the Crown of Polish Mountains (a MAT member climbed 28 summits in a year, including Rysy in winter). The team also took part in a triathlon relay for the first time (Iron Dragon Triathlon).

KRAKÓW AIRPORT MAT RUNNING TEAM Kraków Airport Running Team MAT represents the Company in long-distance running and similar sports (e.g. triathlon, climbing).

5 teams representing Kraków Airport; 20 employees; 2 3rd place of the Airport Rescue and Firefighting Service (for 1014 competing teams).

The Running Team promotes Kraków Airport at large sports events and popularizes running as the simplest form of sport activity. Its name is derived from the first letters of the names of the founders of the group: Monika, Artur, Tomasz. MAT was started in 2016, wearing T-shirts with the logo of Kraków Airport, not only in Kraków and Małopolska but also, thanks to the Company's sup-port, in international competitions. The team was officially joined by Renata, and occasionally also non-associated running aficionados participate in sports events together with MAT. Members of the team cover different distances during sports competitions, from short several-kilometre-long runs to full marathons and mountain runs.

Each MAT member participates in several races every year, including team competitions. In 2017, the Kraków Airport team took part in, amongst others: Cracovia Marathon, Pisa Marathon, Bratislava Marathon, Żywieckie Lake Half-Marathon, Lisiecki Half-Marathon, Royal Half-Marathon, Three Mounds Race, Cursed Soldiers Race, and Valentine's Day Race. The team also competes in mountain running, e.g. in the Małopolska Pearls series of runs, organized in six Małopolska national parks.

Our runners gladly take part in charity races, during which they put a lot of effort to help the sick and those in need, e.g. Kraków Business Run, Krwiobieg, Bieg Wielkich Serc within

KRAKÓW AIRPORT FOOTBALL TEAM The team was established in 1997, and since then the football players of Kraków Airport have been very successful both in Poland and abroad.

The core of the team is formed by the firefighters from the LSR-G, supported by their colleagues from other departments. On 29-30 September 2017 the Kraków Airport team won the traditional airports tournament in Szczyrk.

1 st place in XXI Airports Futsal Championships in Szczyrk 2017; Paweł won the best scorer award.

photo Kraków Airport

KRAKÓW BUSINESS RUN

photo Running Team MAT

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Kraków Airport Employees | 85

The official Kraków Airport Security Service shooting team was established in 2010, and already in 2011 they won the national competition in the security industry. The composition of the team has changed over the years, but three of its members: Zbigniew, Paweł and Dariusz continue to be the backbone of the team ever since its foundation. Additionally, Zbigniew and Dariusz are shooting instructors who share their theoretical and practical knowledge with other employees of the Airport Security Service during shooting training sessions.

The SOL shooting team have been the Airport Security Services Champion of Poland for 7 years in a row.

ACHIEVEMENTS OF THE KRAKÓW AIRPORT SHOOTING TEAM IN 2017 FEBRUARY: 1 st place for Paweł and 8th for Piotr in the IV Shooting Tournament Winter at Emjot (final results, after four series).

MARCH: 4th place for the team in the III National Shooting Competition Puchar Zbyszków.

APRIL: 5th place for the team in the 8th Wojciech Ruszkowski Memorial MAY: 5th place for the team in the IX KSS Komandor President competition.

NOVEMBER: 8th place for Paweł; 19 th place for Dariusz and 61 st place for Zbigniew in the V Shooting Tournament Winter at Emjot, series I. DECEMBER: 1st place for Dariusz; 4th place for Paweł and 24th place for Zbigniew in the Expert Tournament, in the centrefire pistol category 7th place for Paweł; 13th place for Dariusz and 40 th place for Zbigniew in the V Shooting Tournament Winter at Emjot, series II.

JUNE: 1 st place for the team in the Airports Championships.

photo Drużyna Strzelecka

KRAKÓW AIRPORT SHOOTING TEAM

Sustainability Report

photo Przemysław Krystaszek

KRAKÓW AIRPORT – A RESPONSIBLE NEIGHBOUR

photo Łukasz Polus EPKK Spotters

Kraków Airport – a Responsible Neighbour | 87

The airport and its environment (residents, local companies, local government units, non-governmental organizations) is a system of mutual dependence. The mutual impact is permanent and unavoidable.

The demand for aviation services makes the airport in Małopolska necessary. The airport's activity is an opportunity for people living in the neighbourhood to find employment, it brings certain CSR activities of the company, as well as economic growth and new investors who choose the region due to the airport proximity.

Airport growth means more than 10 thousand direct and indirect jobs and economic growth for Kraków and Małopolska.

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Altogether, about 5.5 thousand people work at Kraków Airport (4.5 thousand in the civil part, and over 1 thousand in the military part). This is a big responsibility and the reason why Kraków Airport acts in accordance with principles of sustainable development, taking actions in the area of environmental protection, being a stable and responsible employer, supporting cultural events in Kraków and Małopolska, and being involved in the life of the local community.

An example of such involvement is the agreement concluded in 2008 between Kraków Airport, the Commune of Zabierzów and the Municipality of Kraków, under which Kraków Airport decided to co-finance the agglomeration bus route No. 208, connecting the airport and the Main Railway Station in Kraków. This route is used by the residents of nearby villages and passengers of Kraków Airport. For residents of some of the villages located in the vicinity of the airport, this is the only connection to the centre of Kraków.

According to research by Airports Council International, each million of passengers handled at an airport means 750 direct jobs in the region.

Sustainability Report

photo Kraków Airport

SUPPORTING OUR NEIGHBOURS GRANT COMPETITION

Every year, the airport supports numerous social campaigns and initiatives, focusing particularly on the communes neighbouring directly with the airport – Liszki and Zabierzów. The grant competition started in 2010 – Supporting our Neighbours

SUPPORTING OUR NEIGHBOURS COMPE TITION 2010-2017 9 editions; 132 implemented projects; 83 projects in Zabierzów commune; 49 projects in Liszki commune; over 70 cooperating organizations and institutions; over 800 volunteers; 5 mentions in the Responsible Business in Poland. Good Practices report published by the Forum for Responsible Business.

was devised with the well-being of residents of the two communities in mind. The purpose of the competition is to support non-governmental organisations, local institutions, or informal groups of residents in their joint efforts to improve the living conditions of the local community.

Thanks to the ingenuity of the residents and the support of Kraków Airport, projects that contribute to the integration of the local community, or influence the development of culture, education and sport are implemented. Every year, projects from the following areas are accepted into the competition: education, culture and historical heritage, ecology, promotion of a healthy lifestyle, safety, improvement of tourist attractiveness, and other initiatives related to recreation, physical fitness and sport.

The criteria for determining the best projects, e.g. the needs of local communities, purposefulness and innovation of the project, the number of affected residents, establishing project-centric partnerships, or the sustainability of results, are defined in the regulations of the competition.

The regulations and the competition questionnaire are modified every year, so as to take into account the ongoing social changes, the growing number of entities interested in the competition, and, most importantly, the comments and suggestions of the participants.

Each year since 2013 the Supporting our Neighbours grant competition has been mentioned in the list of longterm projects in the category Social Involvement and Local Community Development in the report Responsible Business in Poland. Good Practices published by the Forum for Responsible Business.

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9 T H EDITION OF SUPPORTING OUR NEIGHBOURS GRANT COMPE TITION In 2017, the Supporting our Neighbours grant competition was preceded by an open and free training for potential applicants. The training aimed at increasing the chances to obtain co-financing for local initiatives took place on 19 April 2017.

Priority was given to organizations and institutions who had not applied in the competition before. Changes in the 9 th competition regulations were explained at the meeting and guidelines were given on how to fill in the application correctly. In addition, Kraków Airport representatives told

7 1 grant applications; 11 winning local initiatives; 2 representatives of Liszki and Zabierzów communes in the competition committee.

the participants how to promote their projects effectively.

In 2017, for the first time, representatives of Liszki and Zabierzów communes were included in the competition committee. Project evaluation criteria were also modified in the 9 th competition regulations by

adding additional points for location.

Both these modifications were made as a result of a questionnaire survey held in 2016. 24

COMPE TENCE VOLUNTEERING In addition, Kraków Airport offered assistance in searching for funds from generally available sources (e.g. EU funds, grant programmes, etc.) to all applications in the 9 th edition of Supporting our Neighbours grant competition. These activities were carried out by airport employees as part of competence volunteering.

WINNING PROJEC TS OF THE 9 T H EDITION OF SUPPORTING OUR NEIGHBOURS GRANT COMPE TITION 1/ Sports and Recreation Centre in Zabierzów – Purchase of sound amplification equipment for OSR in Zabierzów; 2/ Voluntary Fire Service in Balice – Strzał Życia (purchase of a new automatic outdoor defibrillator LIFEPACK CR+); 3/ Wspólnota Nadziei Foundation – Farmer's Day – team-building picnic at Life Farm in Więckowice; 4/ Kryspinów Association – Construction of a playground with a recreational part for Kryspinów residents – stage I;

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5/ Brother Albert Foundation – Outdoor gym for the 30 th anniversary of the Brother Albert Foundation; 6/ Friends of Education in Rząska “For A+” – Music - that's what I like! (purchase of a musical instrument); 7/ School in Rząska – Bilingual Competence (additional language classes); 8/ St Joseph Elementary School 1. in Kaszów – Szkoła z poLOTem – Wasza pomoc – wspólna korzyść – lepsza przyszłość (a green class for the playground);

9/ Captain Mieczysław Medwecki Elementary School in Morawica – Learning languages – a good start for the future (modern language teaching room in the new school building); 10/ Voluntary Fire Service in Kryspinów – Purchase of a sludge pump; 11/ Brzoskwinia Village – Brzoskwinka valley – an area for activity and rest.

Sustainability Report

Public safety Leisure Ecology, the environment and sustainable development Health promotion Sport and tourism Culture, the arts, protection of national heritage Economic growth, labour market development, promotion of employment

KRAKÓW AIRPORT INVOLVEMENT MAP

Development of civil society Support of modern technologies Support of Disability Action Plan Education and upbringing

Since September 2017, in addition to the routes map, Kraków Airport has had a map of involvement. On the airport's website there is a map with all initiatives implemented to date as part of the Supporting our Neighbours competition.

includes new playgrounds, recreation and teaching paths, local sports clubs with new infrastructure and equipment, voluntary fire service with new life-saving equipment, nearby schools with modern multimedia solutions additional foreign language classes, and many other initiatives developed for children and seniors.

The map covers two communes neighbouring the airport – Liszki and Zabierzów and shows the scale of Kraków Airport's cooperation with the local community, including NGOs, local public units and informal groups of residents. The grant map

All projects are marked with colour triangles which show project categories according to the legend placed next to the map. Project names and locations are displayed when the cursor is placed over a triangle. When the card is clicked a detailed project

description and a picture is displayed.

The initiatives shown on the map are described based on the implementation reports submitted by beneficiaries. The map is regularly updated with successive implementations.

The map allows our neighbours to check where the financing from Kraków Airport goes to and which initiatives under the Supporting our Neighbours competition are implemented in the vicinity.

The grant map is available on the airport website in the Supporting our Neighbours competition tab http://bit.ly/grantyKRK.

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PROJEC TS CO-FINANCED UNDER THE CLOSE TO THE AIRPORT GRANT COMPE TITION

2/ Aleksandrowice Village – Improved security of residents – CCTV expansion in Aleksandrowice;

3/ Voluntary Fire Service in Morawica – Completion of a fire station for OSP in Morawica;

6/ School and Pre-School in Balice – Umbrella – purchase and installation of blinds for gym windows;

4/ Morawica Village – Safe Morawica – Safe Residents (CCTV);

7/ Małopolska Social Committee at Mnikowo Junior High School – a Learning Corner at the Recreation and Sports Centre.

5/ Nasz Cholerzyn Association – Safe Cholerzyn – Active Zebra Crossing;

PILOT EDITION OF THE CLOSE TO THE AIRPORT GRANT COMPE TITION

should be implemented, that is infrastructure, increased security, education and the environment.

In March 2017, representatives of Kraków Airport participated in a cycle of meetings with its closest neighbours, and residents of villages and towns surrounding the airport 25 .

The meetings were organized to consult, with a questionnaire, a new programme addressed to the residents of eight villages located in the immediate vicinity of the airport.

Almost 90% of respondents indicated that an additional programme is needed and its effect should be projects for the entire community.

The residents indicated the areas in which, in their opinion, the projects

Consequently, independently of the 2017 Supporting our Neighbours grant competition, the Management Board of Kraków Airport decided to launch a pilot of a new programme intended exclusively for residents of the eight villages located nearest the airport (Rząska, Szczyglice, Balice,

24 More information on the 2016 questionnaire survey can be found in Kraków Airport Sustainability Report 2016 available at www.krakowairport.pl/CSR.

More information on the consultation and information meetings can be found in section Relations with Stakeholders.

25

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Aleksandrowice, Chrosna, Morawica, Cholerzyn, Mników). The programme was later officially called Close to the Airport.

Seven projects serving the residents of these villages were co-financed under the Close to the Airport grant competition. The projects were selected from among applications submitted to the Supporting our Neighbours grant competition.

photo OSP Kryspinów

1/ INTEGRACJA Szczyglice Development Foundation – Construction of square next to People's Home in Szczyglice;

Sustainability Report

photo Polish Aviation Museum in Kraków

WE SUPPORT CULTURE

Sponsorship is an important element of the process of positioning the Kraków Airport brand. Its purpose is to shape the image of the airport as a modern company and a leader among European regional airports and to build good relations with residents of the neighbouring communities. In 2017, we continued our activities started in previous years and we developed projects pertaining to the local communities, in accordance with the provisions of our sponsorship policy. In 2017, Kraków Airport received two nominations for the title of Kraków Culture Patron 2016 in the Sponsor and Donor categories.

In addition, since 2011 Kraków Airport has been supporting the projects of Willa Decjusza foundation. The cooperation has included the Summer Visegrád School and the Polish Sergio Vieira de Mello, UN High Commissioner for Human Rights Award.

Kraków Airport also cooperates with the Kraków Festival Office when it comes to the organization and promotion of some of the most recognizable cultural events in Kraków, such as the Sacrum Profanum Festival, Misteria Paschalia, Film Music Festival, Opera Rara, Conrad Festival. Last year, Kraków Airport also cooperated with J. Słowacki

Theatre, National Museum in Kraków, and International Centre of Culture.

Kraków Airport was also a sponsor of the Life Festival Oświęcim 2017.

As part of supporting the cultural events in Małopolska, Kraków Airport allows selected entities to use the area of the footbridge connecting the passenger terminal with the car park and railway station. In 2017, the footbridge was used for exhibitions arranged by the Polish Aviation Museum in Kraków, National Museum in Kraków (Lady with an Ermine, Heritage), and Kraków City Hall (Wyspiański).

KRAKÓW AIRPORT IS A PATRON OF: Kraków Opera; P olish Aviation Museum in Kraków.

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Kraków Airport – a Responsible Neighbour | 93

Centre. In late August 2017, Kraków Airport was visited by students from schools in Morawica and Balice who were invited to take a tour of the airport with parents and siblings, as a reward for their social commitment. The visitors met the falconer, learned about the work of ground aircraft traffic coordinators, and at the Airport Rescue and Firefighting Service station they had an opportunity to see the equipment and learn to administer first aid.

School patronage does not only mean buying new equipment and prizes for school competitions, or co-financing trips and sports activities. It also includes an annual invitation to a theatre on St Nicholas Day or participation of the children in important airport events, e.g. opening of the Aviation Education

Kraków Airport supports the Third Age University, a Porozumienie Podkrakowskie Association initiative for the seniors of Małopolska.

The Airport also cooperates with Kraków universities where the airport employees share their expert knowledge with students. Kraków Airport is also a patron of the Aviation

Education Centre which implements various educational projects. Development of education is one of the goals included in the Kraków Airport social responsibility strategy in the area of social commitment.

photo Joanna Patej EPKK Spotters

For many years, Kraków Airport has been a patron of Captain Pilot Mieczysław Medwecki Elementary School in Morawica and School and Pre-School in Balice. The patronage consists of financial support of activities aimed at improving the quality of teaching and the development of students’ key competencies, passions and hobbies. In 2017, Kraków Airport started the patronage of a bilingual class in Elementary School in Rząska (non-financial patronage).

photo Kraków Airport

WE SUPPORT EDUCATION

G4-DMA, G4-SO1

Sustainability Report

photo Kraków Airport

KRAKÓW AIRPORT AVIATION EDUCATION CENTRE

The Aviation Education Centre is a unique project linking years of professional and educational experience of Kraków Airport with the latest trends in the aviation industry.

The centre is a response to the need of Małopolska residents and educational units. Its task is to propagate knowledge on aviation, increase the awareness of the local community, instil passion for aviation in the young generation which in the future may translate to a desire to work at the airport, and to better prepare the applicants to work at the airport.

The form of classes is adapted to the needs of various age groups.

The Centre offers specialist classes, training, workshops and e-learning courses. The youngest can see theatre performances on aviation and learn while playing.

Kraków Airport Aviation Education Centre – a unique educational centre in Poland – was opened on 12 October 2017.

Since opening to the end of 2017 the Centre provided educational classes for:

The area of 400 m² holds an airport in a nutshell – a generally accessible area equipped with elements of terminal infrastructure and an imitation of the operational zone for aircraft.

The centre also has thematic rooms, and two e-learning rooms, each with 6 computer stations. Available are cutting-edge technologies, including a flight simulator and Sanbot humanoid robot which interacts with visitors. On the walls, there are educational graphics showing various aviation curiosities and airport procedures.

86 groups; 2,130 people 26 .

Opening of Kraków Airport Aviation Education Centre:

26 The Airport Tour programme was continued until the opening of the Kraków Airport Aviation Education Centre. The programme was provided for 175 groups and 5,118 people. After the opening, the Centre took over the Airport Tour programme.

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Kraków Airport – a Responsible Neighbour | 95

photo Kraków Airport

WE SUPPORT INNOVATION

SCALEUP

Projects in which Kraków Airport was a partner:

In 2016, Kraków Airport became a strategic partner of ScaleUp – a start-up accelerator, i.e. a support programme for young technological companies created by the Kraków Technology Park. The activity of the accelerator was implemented in 2017. Applying companies quickly noticed Kraków Airport's potential and the multidimensional character of processes taking place here. In the summer of 2017 a group of Kraków Airport employees, experienced specialists from various disciplines, helped with three projects, expanding them to include functions crucial for application at airports.

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sends hazard alerts to the falconers via the mobile and stationary application;

Bird activity multirecorder from Bioseco sp. z o.o. in Gdańsk.

The first stage included the development of a mobile application for tablets which serves as a handy, electronic, online work register for airport falconers, reporting observations of bird activity, falconers' actions and the results of their bird-scaring work. The reports are sent to a database every half an hour, allowing an analysis by services responsible for air operations safety. In stage two, an optical device was installed at the airport to detect and record bird presence and location. The device

V irtual Reality training simulator from Simpro sp. z o.o. in Kraków.

This is a technology allowing a simulation of a specific 3D scenery using special goggles (glasses). A simulation of guiding the aircraft to the parking spot was developed for marshalls. In a virtual scenery, a marshall sees the aircraft taxiing on the apron and by means of signals sent by virtual “torches” guides it to the parking spot. The technology can be used to train and asses the skills of marshalls and potentially in other areas of airport operation;

Sustainability Report

Solar benches from SEEDiA allow

In October 2017, Kraków Airport started cooperation with Space Systems scientific club at Stanisław Staszic AGH University of Science and Technology in Kraków. The agreement signed with the University will help AGH students to develop their design of a Kalman planetary rover, e.g. by purchasing specialist equipment.

As part of the cooperation with

the airport, the students will share their knowledge at Kraków Airport's Aviation Education Centre.

The Kalman planetary rover technology allows access to dangerous places, e.g. during the disarming of explosives. The rover is designed to move in very difficult terrain. Kalman also has a special drill which can penetrate soil to get samples for further analysis.

photo AGH Space System

passengers to use free Wi-Fi or charge mobile devices. The project was designed with the idea to install the benches at bus and railway stations. Thanks to the use of e-paper technology in info-kiosks accompanying the benches, passengers would receive additional information about their chosen means of transport.

DEVELOPMENT OF SPACE TECHNOLOGIES

Bird activity multirecorder:

Virtual Reality training simulator:

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About this Report | 97

photo Sławomir Pawłowski

ABOUT THIS REPORT

photo Kraków Airport

Sustainability Report

The Sustainability Report of Kraków Airport covers the data from the period 1.01.2017 to 31.12.2017 unless stated otherwise in the document.

The report concerns the operations of Międzynarodowy Port Lotniczy im.

Jana Pawła II Kraków-Balice sp. z o.o.

(MPL), which is only responsible for managing the civil part of Kraków Airport. The company has no external branches. The report does not cover the activity of companies, in which MPL is a shareholder, or entities which are the shareholders of MPL. This Sustainability Report was created in accordance with the Global Reporting Initiative (GRI) reporting methodology, in accordance with the G4 version of the GRI standard (compliant with the option of the CORE application), including the indexes recommended by the sectoral supplement for airports G4 Sector disclosure – Airport Operators. GRI G4 indexes referred to in the report are listed at the bottom of each page. The complete table of all indexes along

with their descriptions can be found at the end of the report.

This document is the second report of this kind created by MPL. The first report was published in January 2017 and covered the period from 1.01.2016 to 31.12.2016.

The employees of all divisions of MPL and Kraków Airport stakeholders were involved in the process of creating the report. The subject matter of the report was supervised by an eight-person team for the CSR of Kraków Airport, which included representatives of departments responsible for various activities in CSR-related fields, specified in accordance with ISO 26000. The content of the report has been subject to internal review performed by the managers of the substantive units of the Company. The final form of the report was presented and discussed during the meeting of the Management Board of the Company.

We would like to thank every person involved in the creation of this report.

As we prepared the contents of the report, we were guided by four principles of reporting, in accordance with the GRI G4 standard: inclusion of stakeholders, context of sustainable development, relevance and completeness. The process of preparing the contents of the report consisted of three stages: 1/ Analysis of aspects affecting the airport in the context of sustainable development, based on strategic documents, procedures and industry-related issues, guidelines indicated in the GRI G4 standard, issues raised by stakeholders during a series of meetings, questionnaire surveys, as well as the aggregated complaints and suggestions and issues raised by employees;

G4-3, G4-18, G4-28, G4-29, G4-30, G4-33

photo Kraków Airport

About this Report | 99

2/ Choice and prioritization of the most important issues of sustainable development; 3/ Choice of indexes capable of providing a complete description of the key aspects of reporting of Kraków Airport.

The Company did not specify a verification policy for this report.

A decision was made that non-financial reports would be created once a year.

DATA FOR THE 2017 EDITION OF THE REPORT 2 7 Thanks to using Cocoon 60 Silk paper instead of non-recycled paper, the negative environmental impact was reduced by:

37 kg less

81 kWh less

waste

energy consumed

1,454 less

50 km shorter distance travelled by a mid-class car

water used

5 kg less greenhouse gases

The PDF version of the document can be found at www.krakowairport.pl/CSR

61 kg less wood used

27 Carbon footprint evaluated by Labelia Conseil according to the Bilan Carbone method. Calculations based on the comparison of recycled paper and wood pulp paper included in the most recent European BREF data for wood pulp paper.

G4-18, G4-33

Sustainability Report

The multi-stage process of defining the contents of the report, conducted in accordance with the guidelines of the GRI G4 standard, made it possible to identify the most important aspects of reporting for Kraków Airport. The issues raised by the stakeholders were analysed and assigned relevant priorities, in accordance with the GRI G4 standard, and thus a list of key aspects, which were finally included in this report, was created.

The performance and initiation of actions in the scope of key aspects for Kraków Airport (indicated in the report) contribute to the achievement of the sustainable development goals defined in the 2030 United Nations Agenda. It is a response to the sustainable development challenges on a local, regional and even global scale.

KEY ASPECTS OF REPORTING – KRAKÓW AIRPORT QUALITY EDUCATION

DECENT WORK AND ECONOMIC GROWTH

photo Kraków Airport

KEY ASPECTS OF REPORTING – KRAKÓW AIRPORT

Impact of the aspect Impact of the aspect inside Kraków outside of Kraków Airport Airport

Safety of air operations and safety of airport users Development of airport infrastructure, including the construction of a new runway Regulatory compliance

INDUSTRY, INNOVATION AND INFRASTRUCTURE

REDUCED INEQUALITIES

Communication with stakeholders Ensuring the high quality of passenger service Improvement of the offer of air connections and commercial services

SUSTAINABLE CITIES AND COMMUNITIES

CLIMATE ACTION

Facilities for airport users, including persons with special needs Fair operational practices Cooperation with local community Noise control

LIFE ON LAND

PARTNERSHIP FOR THE GOALS

Environmental protection solutions New technologies Responsible employer Development of the region

G4-DMA, G4-2, G4-19, G4-20, G4-21, G4-EC7

About this Report | 101

photo Kraków Airport

CONTACT

This report is to provide Kraków Airport stakeholders with access to a reliable source of information on airport activities. Dialogue and awareness of airport stakeholder needs is necessary in order to ensure that daily decisions respond to sustainable development goals.

KRAKÓW AIRPORT

MARKE TING & PR MANAGER

ul. kpt. M. Medweckiego 1 32-083 Balice

Dagmara Komperda M: +48 606 872 836 E: Dagmara.Komperda@krakowairport.pl

Please feel free to share your opinions and suggestions. As proven by this report, your opinions influence the decisions that are made. Your opinions will also determine the form of subsequent editions of the report and the issues contained therein.

Facebook: facebook.com/KrakowAirport

krakowairport.pl T: +48 12 639 33 01 E: airport@krakowairport.pl

Twitter: @KrakowAirport YouTube: youtube.com/user/KRKAirport Instagram: instagram.com/Kraków.airport

G4-5, G4-31

KRAKÓW AIRPORT CSR TEAM COORDINATOR Katarzyna Gajus-Wyrwicz M: +48 600 942 094 E: K atarzyna.Gajus-Wyrwicz @krakowairport.pl

Sustainability Report

CALENDAR OF EVENTS 2017 January

Nomination for Kraków Airport mobile application for the prestigious national competition for the best mobile application in the Travel and Tourism category.

March

Start of information and consultation meetings with neighbouring towns and villages in connection with the new runway construction Installation of a monitor in security check areas to inform passengers about

April

Opening of the observation deck Adoption of the anti-bullying and harassment policy.

Launch of the 9 th edition of Supporting our Neighbours grant competition for residents of Liszki and Zabierzów communes.

May

For the first time, Kraków Airport is listed on the List of Responsible Companies published by Gazeta Prawna.

the expected traffic in the zone in the next 30 minutes.

Social responsibility of Kraków Airport acknowledged in the report Responsible Business in Poland. Good Practices.

Rescue and firefighting exercise to check the firefighting infrastructure at the terminal, integrated rescue system and coordinated rescue, firefighting and search operation.

the business management strategy and refers also to various experiences of passengers and airport stakeholders.

Change of Kraków Airport logo – new logo was selected in a competition, the winner was 2code design studio from Szczecin. The new logo is a symbol of facing new challenges and evolution in

Commendation for Kraków Airport mobile application in the Best Tourist Publications 2016 competition in the mobile guide category.

June

Signing of grant agreements with winners of the 9 th edition of Supporting our Neighbours competition and the pilot edition of Close to the Airport competition addressed to villages closest to the airport. 18 projects were co-financed.

Launch of the 2nd edition of the We Support Volunteers competition as an element supporting employee volunteering.

July

Launch of direct flights between Kraków and Chicago by PLL LOT. Announcement of results of the 2nd edition of the We Support Volunteers competition. The winners were five volunteer teams.

Multi-recorder installed at Kraków Airport – a device supporting the work of a falconer by automatic recognition,

tracking and analysis of birds movements at the airport, one of the three projects implemented with Kraków Technology Park as part of the 1 st edition of the ScaleUp programme.

Opening of the connector between the hotel and an overground passage above the internal communication system, to walk from the hotel to the train station, multi-storey car park or the terminal.

G4-13

Calendar of Events | 103

August

Purchase of 6 hybrid cars for ground air traffic coordinators.

Start of modernization of the oldest apron part (PPS).

Cooperation agreement between Kraków Airport and the National Disabled People Rehabilitation Fund.

September

For the first time in Kraków Airport's history, a nomination for World Routes Marketing Awards awarded for effective marketing to support the development of the network of connections and cooperation with carriers.

Completion of the document Development Strategy of the Capital Group John Paul II Kraków-Balice International Airport.

October

Opening of the Aviation Education Centre – a unique aviation educational facility in Poland Presentation of Kraków-Balice Master Plan for 2016-2036, defining the airport development directions for the next 20 years.

Two Kraków Airport representatives went on a trade mission to Chicago to enhance economic cooperation between the city of Chicago, Illinois, Małopolskiego Voivodeship, the city of Kraków, Polskie Linie Lotnicze LOT and

November

5,000,000 th passenger greeted at Kraków Airport – Kraków Airport became the first regional airport in Poland to

December

Kraków Airport was again the host of the VIP/CIP Training for WAVF Members – dedicated to airports associated in World Airport’s VIP Forum.

Second Meeting on the International Volunteer Day at Kraków Airport Aviation Education Centre.

The Supervisory Board approved the document Development Strategy of the Capital Group John Paul II Kraków-Balice International Airport.

An interactive map of grants launched on Kraków Airport's website. The map includes all projects implemented within the Supporting our Neighbours competition.

Kraków Airport.

Cooperation started with Stanisław Staszic AGH University of Technology to support the AGH Space Systems and develop Kalman planetary rovers.

Blog launched on the 10 th anniversary of Airgate, Kraków Airport's bimonthly magazine.

ASQ Awards 2016 for winning the category Europa – Best Improvement by Region at the international air forum 27 th ACI World/Africa Annual General Assembly.

handle more than 5 million passengers a year.

National Aviation Forum with the participation of five regional airports at Kraków Airport Aviation Education Centre.

Annual Christmas meeting for members of the Airline Operators’ Committee to sum up the year. As usual, during gifts were given to two care and education centres in Kraków.

Sustainability Report

GRI-CONTENTS INDEX INDEX

GRI GUIDELINES

SCOPE OF REPORTING

PAGE

PROFILE INDE XE S Strategy and analysis G4-1

Declaration by the President of the Board, or another person of similar status, regarding the importance of sustainable development for the organization and its strategy

Full

3

G4-2

Description of key factors, risks and opportunities

Full

3, 6-7, 12, 14, 16, 18, 37-38, 47-49, 100

Organization profile G4-3

Name of the organization

Full

5, 8, 98

G4-4

Main brands, products and/or services

Full

6-7, 12, 15, 20, 30-32

G4-5

Location of headquarters of the organization

Full

5, 101

G4-6

Number of countries in which the company is active

Full

20

G4-7

Form of Ownership and the Organizational Structure

Full

8-9, 12

G4-8

Markets relevant to the organization (incl. geographical distribution, market sectors, types of clients and beneficiaries)

Full

18-25

G4-9

Scale of activity of the organization

Full

7, 13, 18, 19-22, 27-30, 78, 87

G4-10

Total number of employees with information on the form of employment, type of contract, region and gender

Full

78-79

G4-11

Percentage of employees employed under collective agreements

Full

78-79

G4-12

Supply chain/Value chain

Full

7

G4-13

Substantial changes during the reported period regarding the size, structure, form of ownership, or supply chain

Full

3, 6, 12, 15, 37-38, 102-103

G4-14

Precautionary principle

Full

56-57, 58-59, 60-61, 62-63, 64, 68

G4-15

External economical, environmental and social declarations, or other initiatives, accepted/supported by the organization

Full

12, 33, 47, 60, 74

G4-16

Membership of associations (e.g. industry-related associations) and/or of national or international organizations

Full

12

Identified vital aspects and their respective limits G4-17

Operation structure of the organization, including the main departments, subsidiaries, related entities, and joint-venture companies, along with information as to which of those were covered by the report

Full

8-9, 10-11

G4-18

Process of defining the contents of the report, and the process of implementation of rules of reporting for the purpose of defining the contents of the report

Full

98-99

G4-19

Key aspects of reporting

Full

100

G4-20

Influence of the aspect in the organization

Full

41, 42-43, 100

G4-21

Influence of the aspect outside of the organization

Full

41, 42-43, 100

G4-22

Explanations regarding the effects of any corrections of information of past reports, including the reasons and influence of such corrections

N/A

-

G4-23

Significant changes regarding the scope, range, or methods of measurements employed in the report, compared to the last report

N/A

-

G4-32

GRI-contents Index | 105

INDEX

GRI GUIDELINES

SCOPE OF REPORTING

PAGE

Commitment of the stakeholders G4-24

List of groups of stakeholders involved in the organisation

Full

40-41, 42-43

G4-25

Base of identification and selection of the involved groups of stakeholders

Full

40

G4-26

Approach to the involvement of stakeholders, including the frequency of involvement for different types and groups of stakeholders

Full

40-41, 42-43, 44-54, 80, 81, 88-89, 91

G4-27

Key issues and problems addresses by the stakeholders, and the answer on the part of the organisation, including by means of reporting

Full

42-43, 47-49, 51-52, 82

Profile of the report G4-28

Period of reporting

Full

98

G4-29

Last report publication date

Full

98

G4-30

Reporting cycle

Full

98

G4-31

Contact person

Full

101

G4-32

GRI-contents Index

Full

104-107

G4-33

Policy and internal practices for the external verification of the report

Full

98-99

Supervisory structure of the organisation, incl. the committees responsible for specific tasks and reporting to the highest supervisory body

Full

8-9, 42-43

Internally formulated mission or set of values of the organisation, code of conduct and code of ethics

Full

5, 16, 33, 80

Full

6, 13-14, 15, 18, 87

Partial

13-14

Organizational order G4-34 Ethics G4-56

RE SULT S INDE XE S ECONOMIC AREA G4-DMA

Approach to management in economic aspects

Aspect: Economic results G4-EC1

Direct economic value generated and divided, with consideration of revenues, operation costs, and other investments for the benefit of the community

Aspect: Market presence G4-EC6

Percentage of persons from the local community employed in managerial positions at the organisation’s primary business locations

Full

78-79

A01*

Total number of passengers in the following categories: domestic and international flights, beginning and end of the journey, in transit, in transfer

Partial

19, 21-25

A02*

Total number of flight operations in the following categories: day/night operations, passenger/cargo/national/general aviation flights

Partial

19, 21-25

A03*

Cargo tonnage total

Full

19

Individual index

Statistics: PETC and AVIH

Full

25

Sustainability Report

INDEX

GRI GUIDELINES

SCOPE OF REPORTING

PAGE

Aspect: Indirect economic impact G4-EC7

Development and influence of the investment on infrastructure and services

Full

18, 27, 29-31, 37-38, 47-48, 87, 100

G4-EC8

Significant indirect economic influence and its scale

Full

18, 87

Full

3, 16, 66-68, 70-76, 100

ENVIRONMENT AREA G4-DMA

Approach to management regarding environmental aspects

Aspect: Water G4-EN8

Total water consumption and sources of water

Full

75

A04*

Quality of rain water and storm water, in accordance with accepted standards

Full

75

Aspect: Emissions G4-EN15

Direct greenhouse gases emissions

Partial

70-71

G4-EN19

Reduction of greenhouse gases emissions

Partial

70-71

Aspect: Waste and Wastewater G4-EN22

Total volume of wastewater, its quality and destination

Full

75

G4-EN23

Total mass of different types of waste and methods of waste handling

Full

68-69

Aspect: Noise* G4-DMA

Approach to noise management

Full

66, 72-74

A07*

Number of people (with changes in %) living in areas affected by noise generated due to the operation of the airport

Partial

72-73

SOCIAL AREA Aspect: Employment G4-LA1

Total employment, employment rates of new employees, and the turnover of employees – classification by age, gender and region

Full

78-79

G4-LA2

Benefits for full-time employees to which temporary and part-time employees are not entitled, in the main locations of business activity

Full

78-80

Individual index

Number of participants in the “Need Help” internship programme

Full

81

Aspect: Occupational health and safety G4-LA6

Types of injuries, and injury rate, occupational disease rate, percentage(s) of working days lost and absences at work, and work-related fatal accidents, listed by region and gender

Full

80

G4-LA7

Employees frequently developing occupational diseases or particularly exposed to occupational diseases

Full

80

Partial

78

Aspect: Training and education G4-LA9

Average number of training hours per employee, by gender and category

G4-32

GRI-contents Index | 107

INDEX

GRI GUIDELINES

SCOPE OF REPORTING

PAGE

Aspect: non-discrimination G4-DMA

Approach to management in aspect of non-discrimination

Full

80

G4-HR3

Total number of discrimination cases (incidents involving discrimination) and taken corrective actions

Full

80

Full

79-80

Aspect: Freedom of association, and freedom to conclude collective agreements G4-DMA

Approach to management regarding the freedom of association and freedom to conclude collective agreements

Aspect: Safety practices G4-HR7

Percentage of security personnel trained in the area of human rights-related policies or procedures

Full

34, 58

Individual index

Regular safety training and exercises

Full

58-59

Aspect: Local communities G4-DMA

Approach to management regarding the aspect of engagement of local communities

Full

3, 16, 51-52, 87, 92-97

G4-SO1

Percentage of places which implemented the local community engagement programmes, influence assessments and development programmes

Full

87, 88-91, 92, 93

G4-SO2

Actions which have a substantial actual impact/potentially negative impact on the local communities

Full

37-38, 51-52

Individual index

Number of applications for / awarded grants in the “Supporting our Neighbours” competition

Full

89

Individual index

Number of applications for / awarded grants in the “Close to the Airport” competition

Full

91

Individual index

Number of applications for / awarded grants in the “We Support Volunteers” competition

Full

82

Individual index

Involvement of employees in social activities

Full

82-85

Individual index

Number of interventions of the Airport Rescue and Fire Service outside of the airport

Full

60

Full

62-63

Full

35, 47-49

Full

56-57

Full

30-31, 33-36, 47-49

Full

33-34

Aspect: Health and safety of clients A09*

Number of accidents involving animals per 10,000 flight operations

Aspect: Marking of products and services G4-PR5

Customer satisfaction survey results

Aspect: Continuity of operation and preparedness for crisis situations* G4-DMA

Approach to management of the aspect of continuity of operation and preparedness for crisis situations

Aspect: Quality of services* G4-DMA

Approach to service quality management

Aspect: Infrastructure and services for persons with special needs* G4-DMA

Approach to management of infrastructure and services for persons with special needs

* Aspects and indexes marked with an asterisk are taken from the sectoral supplement for the aviation industry "G4 Sector Disclosure - Airport Operations".

Sustainability Report

DEFINITIONS ABBREVIATIONS AND TERMS USED IN THE REPORT HAVE THE FOLLOWING MEANING:

Kraków Airport Hotel – Kraków Airport Hotel sp. z o.o.

SUPERVISORY BOARD – MPL Supervisory Board

KRK – Kraków Airport

RDO – Radom Airport

KTW – Katowice Airport

ORGANIZATIONAL REGULATION – Organizational Regulations of Międzynarodowy Port Lotniczy im.

Jana Pawła II Kraków-Balice sp. z o.o.

ACI – Airport Council International AIRSIDE – Kraków Airport investment projects relating to the airport infrastructure

LCJ – Łódź Airport

AOC – Airlines Operating Committee

LSR–G – Airport Rescue and Firefighting Service

RZE – Rzeszów–Jasionka Airport

BZG – Bydgoszcz Airport

LUZ – Lublin Airport

SOL – Airport Security Service

CDA – Continuous Descent Approach – a landing technique used by the aircraft crew in cooperation with air traffic controllers, involving a constant approach path inclination

MPL SERVICES – MPL Services sp. z o.o.

SZY – Olsztyn–Mazury Airport

MPL, COMPANY – Międzynarodowy Port Lotniczy im. Jana Pawła II Kraków-Balice sp. z o.o.

SZZ – Szczecin Goleniów Airport

GA – General Aviation – total air traffic (private and commercial) except scheduled and military

OOU – Restricted Use Area

ULC – Civil Aviation Office

PAŻP – Polish Air Navigation Services Agency

VIP – Very Important Person

GDN – Lech Wałęsa Gdańsk Airport

TWR – Tower (air control tower)

WAW – Chopin Airport in Warsaw PKD – Polish Classification of Activity

IEG – Zielona Góra Airport

WMI – Warszawa–Modlin Airport PKB – Security Checkpoints

IMGW – Meteorology and Water Management Institute KAL – Kraków Airport Loyalty – free loyalty programme for MPL passengers

WRO – Wrocław Airport POZ – Poznań–Ławica Airport PRESIDENT OF THE BOARD – President of the MPL Management Board

(MANAGEMENT) BOARD – MPL Management Board

Międzynarodowy Port Lotniczy im. Jana Pawła II Kraków-Balice sp. z o.o. ul. kpt. M. Medweckiego 1 32-083 Balice

krakowairport.pl