Aeroports De Paris · EURONEXT:ADP
Aeroports De Paris — Investor Day (October 2015)
57 slides from Aeroports De Paris's investor day presentation, Oct 13, 2015
Slide 1: Investors Day 13 October 2015
Investors Day 13 October 2015
Slide 2: Agenda of the plenary session
Agenda of the plenary session A developing group's ambition Augustin de Romanet, Chairman & Chief Executive Offier Preparing the airport of the future Patrick Jeantet, Deputy Chief Executive Officer Connecting Clients 2020 Laure Baume, Chief Customer Officer Connect 2020 Targets Edward Arkwright, Ch
Slide 3: A developing group's ambition
A developing group's ambition Augustin de Romanet, Chairman and CEO Investors Day – 13 October 2015│ 2
Slide 4: Aéroports de Paris, major player in the aviation sector with a robust business model
Aéroports de Paris, major player in the aviation sector with a robust business model, strongly rooted in territories ATTRACT Working proactively on our Quality of Service and Route development to become the number one choice for our OPTIMISE customers A confirmed business model, with an industrial s
Slide 5: Connect 2020: A 2016-2020 Strategic Plan to serve our Ambition
Connect 2020 A 2016-2020 Strategic Plan to serve our Ambition Connect our passenger and airline customers Connect our infrastructures in Paris : and motivate our employees : Attract Optimise > High standards of quality and excellence, > Optimise our airports, our tariffs for connecting customers in
Slide 6: Constantly evolving since its initial listing on the stock exchange
Aéroports de Paris, Constantly evolving since its initial listing on the stock exchange... Influence Connect 2020 Consolidation Productivity and Competitiveness Improved quality of service Modernisation Increased capacity at Paris-Charles de Gaulle 2020 2016 IPO 2011 2006 2006-2010 2011-2015 2016-20
Slide 7: 2011-2015: Consolidation of our businesses
2011-2015: Consolidation of our businesses Completion of the hub at Paris- Charles de Gaulle > Completion of the new Hall M in Terminal 2E Improved quality of service > Introduction of the single security check > Record satisfaction rate of 88.9% > Improved customer experience (single security check
Slide 8: Leading the achievement of all 2011-2015 targets
…leading the achievement of all 2011-2015 targets 2011-2015 Targets (1) Estimated results Traffic +2.8%(2) +1.9% < x < +2.9% (CGAR 2011-2015) ≥ 3.0% in 2015 OPEX ADP SA x < +3% x < +3% (CGAR 2012-2015) EBITDA +30% < x < +35% +30% < x < +35% (2015 vs 2009(3)) Retail €19 €19 (Sales per pax (4)) Real e
Slide 9: Be proactive towards our passenger and airlines clients
Be proactive towards our passenger and airlines clients, so as to become their number 1 choice Build long-term customer Become the number 1 choice relationships for our customers > Basic standards of service > Particular emphasis on connecting (7 Quality Standards indicators) flights (guidelines and
Slide 10: Capitalising on a robust business model
Capitalising on a robust business model Regulated scope(1) ˃ Strengthen the competitiveness of our airports, the aviation sector and our country ˃ Attract increased traffic, mainly international and in connection Industrial strategy 2020 convergence between regulated ROCE(2) and WACC(3): to boost co
Slide 11: Guarantee a fair return on capital employed on the regulated scope
Guarantee a « fair return » on capital employed on the regulated scope 2016-2020 ERA INDUSTRIAL STRATEGY Traffic growth assumption: Control of regulated +2.5% CAGR2016-2020 investments and OPEX Attract increased traffic, connecting Amendment of the tariffs Focus on looking after traffic in particula
Slide 12: Make the most out of our Parisian airports: Aviation
Make the most out of our Parisian airports AVIATION Put an emphasis on Strengthen the Ensure operational maintenance and competitiveness of the hub renovation and optimise other process robustness and strengthen efficiency Improve passenger Roll out the One Roof satisfaction concept to optimise our
Slide 13: Continue the success story of Retail
Continue the success story of Retail RETAIL Optimise and standardise the Increase awareness before Offer the ultimate offering available in the arrival at the airports international terminals Parisian experience in shopping and dining Develop our brand portfolio Roll out the JV(1) model to Bars & Re
Slide 14: Prepare for the airport city of tomorrow: Real Estate
Prepare for the airport city of tomorrow REAL ESTATE Modernisation of existing Development of assets diversification activities Build and retain value creation Development of cargo activities Roissypole potential change Pontential picture of Aéroports de Paris headquarters at Paris-Charles de Gaulle
Slide 15: Continue our policy of financial discipline
Continue our policy of financial discipline to improve competitiveness FINANCIAL DISCIPLINE Restructuring and synergies Emphasis on Group productivity Payroll management Control and standardisation of needs Savings on other company expenses Control over purchases Investors Day – 13 October 2015│ 14
Slide 16: Establish international as the third business of the Group
Establish international as the third business of the Group by exporting our savoir-faire in a controlled way INTERNATIONAL Continue the development of TAV Enter new markets with ADPi Capitalise on our Airports international assets Diversify our global footprint with Generate Group skill synergies al
Slide 17: Promote the development of employees
Promote the development of employees Main success factor HUMAN RESSOURCES Confidence Boldness 4 fundamental values of Connect 2020 Commitment Openness Offer professional training plans for enforcement officers Promote the personal development of employees Roll out of the « Attitude Manager » program
Slide 18: Act responsibly
Act responsibly with the trust of our stakeholders CORPORATE SOCIAL Exemplary Group CSR policy RESPONSIBILITY Energy efficiency and the fight against climate change Proven leadership: our strengths lie in our long-term development and Human capital and customer relationships the value of our invisib
Slide 19: Preparing the airport of the future
Preparing the airport of the future Patrick Jeantet, Deputy Chief Executive Officer Investors Day – 13 October 2015│ 18
Slide 20: Preparing the airport of the future
Preparing the airport of the future Adapt our infrastructures Roll out the One roof concept to accommodate future traffic increases Optimise our operational processes "Smartisation" of our airports Improve access to the Continue our commitment to airports the CDG Express Investors Day – 13 October 2
Slide 21: Roll out the One Roof concept
Roll out the "One Roof" concept ONE ROOF Merge and upgrade departure areas Merge arrival areas Boost the usage of airport resources Optimise operating costs for the entire sector Provide a more comfortable atmosphere for passengers Create additional services for airlines Expand retail spaces Investo
Slide 22: One Roof – Paris-Orly
One Roof – Paris-Orly Paris-Orly Linking of South and West terminal 80,000 sqm 3.5 MPAX capacity Investors Day – 13 October 2015│ 21
Slide 23: One Roof – Paris-CDG, 2B-2D Junction
One Roof – Paris-CDG, 2B-2D Junction Paris-Charles de Gaulle 2B-2D Junction 34,800 sqm 1.1 MPAX capacity Investors Day – 13 October 2015│ 22
Slide 24: One Roof – Merger of international satellites of Terminal 1
One Roof – Merger of international satellites of Terminal 1 Paris-Charles de Gaulle Terminal 1 Merger of international satellites 26,000 sqm 1.2 MPAX capacity <Note> Merger of 3 international satellites of Terminal 1 over ERA 2016-2020 Investors Day – 13 October 2015│ 23
Slide 25: Modernisation of our operational process: Smartization
Modernisation of our operational process SMARTIZATION Ease passenger path, ease the operational management and meet the new expectations linked to digital > Automated luggage drop > Self Boarding > Automated luggage sorting system > Operational efficiency for Airlines > Operational efficiency for th
Slide 26: Baggage sorting between Terminal 2E's Halls L and M
Baggage sorting between Terminal 2E's Halls L and M Hall L - Hall M baggage sorting S3 Transit baggage drop-off Terminal 2E S3-S4 conveyor Increasing the reliability of the baggage sorting system for the 2E-S3 conveyor hub CAPEX €224 million Baggage ejection at S3 Baggage ejection at S4 Phase 1: TDS
Slide 27: Continue our commitment to the CDG Express
Continue our commitment to the CDG Express CDG Express: Access to Paris-Charles de Gaulle to be adapted Target 2023 to accommodate increased traffic through the introduction of a dedicated and high-quality train line Total potential CAPEX Dedicated rail link Expected end-2023 €1.7 billion Improved p
Slide 28: Connecting Clients
Connecting Clients Laure Baume, Chief Customer Officer Investors Day – 13 October 2015│ 27
Slide 29: Our customer-centric strategy
Our customer-centric strategy Improve number of destinations to and from Paris Simplify and Bring service quality personalise Connecting Clients on a par with the customer Win preference best European relationship with airports digital tools Offer the best of the Paris experience through a unique se
Slide 30: Connecting Clients: promoting value creation drivers of the Group
« Connecting Clients », is promoting value creation drivers of the Group Traffic growth forecast Sales/PAX(1) Customer satisfaction (Mpax) forecasts (Euros) (ACI Survey, 5 points scale) 23 4 +2.5% total traffic CAGR16-20 18,2 3,64 2010 2012 2014 * 2010 2012 2014 2016 2018 2020 +3.6 International tra
Slide 31: Route Development Strategy
Route Development Strategy Improve number of destinations to and from Paris Investors Day – 13 October 2015│ 30
Slide 32: 2011–2015: Dynamic development of serviced routes
2011 – 2015 : Dynamic development of serviced routes Growth of line openings … … spurred on by high-growth markets like China. PARIS FRANKFURT LONDON AMSTERDAM 2014 2015 New routes at Paris-CDG 24 28 et Paris-Orly (today) Cities serviced 7 6 4 6 Weekly rate 89 63 54 46 N° of airlines 5 4 5 3 ADP dat
Slide 33: 2016-2020: Conquer high-potential markets
2016 - 2020 : Conquer high-potential markets Speed up prospection… Targeted prospection to A partnership with the An awareness plan for ADP favour profit markets institutions in charge of > Commercial visit campaign to the > Structurally : China, Korea, Japan, promoting the French territory airline’
Slide 34: Service quality
Service quality Bring service quality to the level of the best European airports Investors Day – 13 October 2015│ 33
Slide 35: 2010–2015: A significant increase in customer satisfaction
2010 – 2015 : A significant increase in customer satisfaction, which is recognised in international rankings Growth at CDG Growth at ORY (year on year as of late June) (year on year as of late June) 2010 SAD +3 pts 2015 2010 SAD +1,3 pt 2015 86.2% 89.2% 86.3% 87.6% Skytrax 2015 – CDG : the strongest
Slide 36: 2016–2020: Reach the level of the best European airports
2016 – 2020 : Reach the level of the best European airports History and forecast of CDG’s ACI ranking History and forecast of Orly’s ACI ranking compared to equivalent European airports (+40 Mpax / year) compared to equivalent European airports (25-40 Mpax / year) 4,2 4,20 Best in class 4,04 Best in
Slide 37: An aggressive programme to fulfil our ambition
An aggressive programme to fulfil our ambition… Terminal improvement projects run in zones with high passenger footfall Check-in zones smoothed T1 out Paris-CDG Paris-Orly Circulation in Arrivals and Departures public concourse T3 New organisation of boarding rooms ORYW ORYS Smoothed out traffic in
Slide 38: FOCUS: Connections, a major and competitive advantage
FOCUS : Connections, a major & competitive advantage for Aéroports de Paris Ranking of item « Ease of connections » in CDG and Orly CDG Best in class Moyenne ORY Best in class Moyenne 4,2 4,20 4,0 4,00 3,8 3,80 3,6 3,60 3,4 3,40 3,2 3,20 3,0 3,00 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 CDG
Slide 39: FOCUS: A place symbolizing the best of Paris
FOCUS : A place, symbolizing the best of Paris, in the heart of CDG’s hub for connecting passengers (in 1st July 2016) Hotel Airside SPA Entrance of the dedicated area for long connections « Instant Paris » Lounges Community Area Investors Day – 13 October 2015│ 38
Slide 40: Digital
Digital Simplify and personalize customer relationships Investors Day – 13 October 2015│ 39
Slide 41: Digital, a new value creation and customer satisfaction driver
Digital, a new value creation and customer satisfaction driver Digital services to customize and Innovative business models to facilitate passengers’ journeys boost e-commerce > MyAirport V2 with new services including > Data Management Platform Function « Travel Memo » Loyality Monetization and com
Slide 42: Services & Retail offering
Services & Retail offering Offering the best of the Paris experience Investors Day – 13 October 2015│ 41
Slide 43: 2016-2020: A service and retail strategy
2016-2020: A service and retail strategy for the preference and value creation 1/ Developing free functional services SERVICES 2/ Increasing our entertainment offering in boarding lounges 3/ Maximizing our revenue on paid-for services with high added value for our customers: > Well being > Concierge
Slide 44: Connect 2020 targets
Connect 2020 targets Edward Arkwright, Executive Director of Finance and Strategy Investors Day – 13 October 2015│ 43
Slide 45: 2020 Targets: Drivers of our development strategy
2020 Targets Drivers of our development strategy Traffic growth assumption: +2.5% CAGR2016-2020 Convergence of regulated ROCE(1) 5.4% in 2020e to the WACC(2) RETAIL Revenue per passenger of €23 on a full- year basis after delivery of the 2016-2020e projects REAL ESTATE Growth in external rents (excl
Slide 46: Convergence of regulated ROCE to the WACC in 2020
Convergence of regulated ROCE to the WACC in 2020… An emphasis on price Regulated ROCE competitiveness and the Pricing increase cap development of Regulated CAPEX international and Regulated ROCE connecting traffic 800 2020 5,4% 6,0% WACC(1) = 5.4% 700 5,0% 693 600 Moderation in tariffs: 3,8% 631 61
Slide 47: Continued increases in productivity
... thanks to continued increases in productivity Decrease of OPEX/PAX in > Limit general wage increases a growing traffic context FOCUS on regulated expenses per pax > Non-replacement of one in two leaving employees 12,4 12,6 12,1 11,9 11,8 -8% 11,0 > Additional savings on other expenses Regulated
Slide 48: Retail: target sales/PAX of €23
Retail: target sales/PAX of €23 based on a full-year after delivery of the infrastructure projects scheduled for 2016-2020 Growth of sales per pax (1) Favourable traffic mix: between 2015 and the delivery of 2016-2020 +3.6% CAGR 2016-2020 for international traffic infrastructure projects 23 Standard
Slide 49: Real estate: Modernisation of assets and development
Real estate: Modernisation of assets and development Growth in external rents Modernisation of assets (excluding reinvoicing and indexation) Improved quality of assets €m Demolition and reconstruction 230 220 +15% Development of diversification 210 +10% activities 200 Airport business district (Rois
Slide 50: An optimised and sustained investment policy of €4.6 billion
An optimised and sustained investment policy of €4.6 billion(1) to back our strategy Regulated CAPEX: Non-regulated CAPEX: Security CAPEX: €3.0 billion €0.9 billion €0.7 billion CAPEX Retail (2) and other non regulated Security equipment € million Standard 3 2015 Diversification Real Estate 693 631
Slide 51: Allocation of share capital
Allocation of share capital Moderate debt and an assumption of a dividend distribution policy at 60% Estimated change of the Group net debt in line CAPEX Financing 2016-2020 with our ambition to €3.0 billion on the regulated scope keep our rating €1.6 billion on security and non-regulated scope €bil
Slide 52: A sound, value-creating economic model
A sound, value-creating economic model supporting the target of strong EBITDA growth Regulated scope(1) ˃ Traffic: +2.5% CAGR2016-2020 ˃ CAPEX 2016-2020: €3.0 billion Industrial strategy ˃ OPEX/PAX: -8% between 2015 and 2020 to increase ˃ Tariffs: CPI +1.0% CAGR 2016-2020 competitiveness Convergence
Slide 53: Augustin de Romanet, Chairman and CEO
Augustin de Romanet, Chairman and CEO Investors Day – 13 October 2015│ 52
Slide 54: Roll out a strategy to promote the ambition of Aéroports de Paris
Roll out a strategy to promote the ambition of Aéroports de Paris to face challenges To be a leading Group in airport design, construction and operation Competitiveness Attractiveness Growth Investors Day – 13 October 2015│ 53
Slide 55: Connect 2020
Connect 2020 To be a leading Group in airport design, construction and operation OPTIMISE ATTRACT EXPAND > Ensure operational > Become the first choice for our > Be an integrator of solutions CUSTOMER performance customers …creating new value for our customers oriented Reliable and adaptable assets
Slide 56: Connect 2020: A 2016-2020 Strategic Plan
Connect 2020 A 2016-2020 Strategic Plan to promote our Ambition OPTIMISE ATTRACT EXPAND Be a leading Group in airport design, construction and operation Investors Day – 13 October 2015│ 55
Slide 57: Disclaimer
Disclaimer This presentation does not constitute an offer of, or an invitation by or on behalf of Aéroports de Paris to subscribe or purchase financial securities within the United States or in any other country. Forward-looking disclosures are included in this presentation. These forward-looking di