Aeroports De Paris · EURONEXT:ADP
Aeroports De Paris — Groupe ADP — Investor Day (2019)
34 slides from Aeroports De Paris's investor day presentation, 2019
Slide 1: Business Model & Financial Outlook – 2019 Investor Day
BUSINESS MODEL & FINANCIAL OUTLOOK 2019 INVESTOR DAY
Slide 2: Content
CONTENT 1 A strong business model 2 An operating framework preserved by the PACTE law Performing regulated activities 3 in Paris The development of non-regulated 4 activities A global leader with the resources 5 to fulfill its ambitions PAGE 2
Slide 3: A strong business model
1 A strong business model PAGE 3
Slide 4: A model which relies on various pillars of activity
A strong business model A MODEL WHICH RELIES ON VARIOUS PILLARS OF ACTIVITY REGULATED ACTIVITIES NON-REGULATED ACTIVITIES in Paris Commercial Diversification Aeronautical Airport real Rental activities real estate till estate revenue Airport safety & Other non-regulated Industrial Other security act
Slide 5: Numerous value-creation drivers at the service of a dynamic model
A strong business model NUMEROUS VALUE-CREATION DRIVERS AT THE SERVICE OF A DYNAMIC MODEL REGULATED ACTIVITIES in Paris NON-REGULATED ACTIVITIES Aeronautical Other regulated Commercial Diversification International & airport till activities activities real estate developments Volume and nature of
Slide 6: A common performance base
A strong business model A SCHEME ENCOURAGING PERFORMANCE AND FINANCIAL DISCIPLINE REGULATED ACTIVITIES NON-REGULATED ACTIVITIES in Paris REVENUE Regulated Non-regulated revenue revenue EXPENSES 100% regulated Common expenses 100% non-regulated expenses to be allocated expenses CAPITAL 100% regulated
Slide 7: An operating framework preserved by the PACTE law
2 An operating framework preserved by the PACTE law PAGE 7
Slide 8: An operating model confirmed for the next 70 years
An operating framework preserved by the PACTE law AN OPERATING MODEL CONFIRMED FOR THE NEXT 70 YEARS Once the majority of Groupe ADP’s shares will be transferred to private shareholders, the Groupe ADP’s legal framework will be modified TODAY PACTE LAW(1) CONCESSION ADP owns the land and the Who own
Slide 9: A compensation for the expropriation from Parisian airports
An operating framework preserved by the PACTE law A COMPENSATION FOR THE EXPROPRIATION FROM PARISIAN AIRPORTS YEAR N YEAR N+70 A Transfer of the majority of Groupe ADP’s share capital to B Transfer of the ownership to private shareholders the French State Loss of the operating right in 70 years Paym
Slide 10: A consolidation of the existing Paris-related regulation principles
An operating framework preserved by the PACTE law A CONSOLIDATION OF THE EXISTING PARIS-RELATED REGULATION PRINCIPLES A REGULATION MODEL WHICH HAS BEEN CONFIRMED AND SECURED Confirmation of ADP’s « adjusted till » model through the PACTE law as voted by the French National Assembly (after its seco
Slide 11: Performing regulated activities in Paris
3 Performing regulated activities in Paris PAGE 11
Slide 12: A fair return on capital employed
Performing regulated activities in Paris A FAIR RETURN ON CAPITAL EMPLOYED There was no significant difference until recently between Groupe ADP’s WACC and the WACC considered for the Economic Regulation Agreement, mostly due to the limited contribution of international activities within the Group A
Slide 13: WACC parameters for the ERA
Performing regulated activities in Paris A FAIR RETURN ON CAPITAL EMPLOYED Ensuring an average return on capital employed equal to the ERA-related WACC over the 2021-2025 period REVIEW OF THE PARAMETERS RETAINED IN OUR PROPOSED ERA-RELATED WEIGHTED AVERAGE COST OF CAPITAL (WACC) Parameters Value Com
Slide 14: Economic Regulation Agreement 2016-2020 and 2021-2025
Performing regulated activities in Paris A FINANCIAL OUTPERFORMANCE SERVING THE FUTURE The regulated ROCE target (5.4%, equal to the WACC) is outperformed in 2020: the 40 bps outperformance (5.8%(1) vs. 5.4% in 2020) will allow a more moderate price increase over the next economic regulation agree
Slide 15: A fair proposal, serving the best interest of every stakeholder
Performing regulated activities in Paris A FAIR PROPOSAL, SERVING THE BEST INTEREST OF EVERY STAKEHOLDER 1 2 3 A growing traffic Executing an investment plan twice Pursuing cost control and in Paris as important as the previous plan discipline TRAFFIC GROWTH REGULATED INVESTMENTS DISCIPLINE ON REGUL
Slide 16: Investments: an ambitious investment plan
Performing regulated activities in Paris AN AMBITIOUS INVESTMENT PLAN TO ANTICIPATE THE FUTURE TRAFFIC GROWTH A dynamic traffic growth of +2.6% per year between 2021 and 2025 2011-2015 ERA 2016-2020 ERA 2021-2025 ERA +2.7% / year +2.8% to +3.2% / year +2.6% / year 130 TRAFFIC 120 MPax 110 100 90 80
Slide 17: A relentless cost discipline
Performing regulated activities in Paris A RELENTLESS COST DISCIPLINE OPEX evolution - 2021-2025 ERA Our commitment: € 130 M of efforts concerning (regulated scope, in € M) regulated costs in 2025 vs. base case trend 1 600 € 130 M of Limitation of regulated OPEX growth to a 2.4% regulated cost C
Slide 18: A financing of long-term investments by Groupe ADP's performance
Performing regulated activities in Paris A FINANCING OF LONG-TERM INVESTMENTS BY GROUPE ADP’S PERFORMANCE CPI (1) + x% 5.95% Groupe ADP’s Performance Financing of -1.15% Terminal 4 – Phase 1 1.60% € 1.6 bn -1.50% Short/medium term financing(2) (ERA 4) 4.35% -1.95% € 4.4 bn 1.35% THEORETICAL annual p
Slide 19: A long-term investment ambition allowed by the strength of the economic regulation
Performing regulated activities in Paris A LONG-TERM INVESTMENT AMBITION ALLOWED BY THE STRENGTH OF THE ECONOMIC REGULATION In the long run, the investment plan including the development of the Terminal 4 is consistent with the historical CAPEX levels of Groupe ADP and its European peers CAPEX per p
Slide 20: An ability to self-finance our economic asset
Performing regulated activities in Paris AN ABILITY TO SELF-FINANCE OUR ECONOMIC ASSET, EVEN AT THE HIGHEST POINT OF OUR INVESTMENT CYCLE In the long run, Groupe ADP maintains a level of cash-flow generation in line with industry standards Free cash-flow / revenue EVOLUTION OF GROUPE ADP’S FREE CA
Slide 21: The development of non-regulated activities
4 The development of non-regulated activities PAGE 21
Slide 22: The growing dynamism of commercial activities
The development of non-regulated activities THE GROWING DYNAMISM OF COMMERCIAL ACTIVITIES THE « ULTIMATE PARISIAN SHOPPING A STRENGTHENED BUSINESS MODEL & DINING EXPERIENCE » Moving upmarket & duplicating the most Full consolidation in ADP accounts of SDA and successful concepts Relay@ADP from Q
Slide 23: A unique real estate potential to be developed
The development of non-regulated activities A UNIQUE REAL ESTATE POTENTIAL TO BE DEVELOPED AN EXCEPTIONAL LAND POTENTIAL IN PARIS Land reserves: 355 ha = Building lands: 1,543,000 sqm CONTINUOUS GROWTH OF SURFACES AND RENTS 1 Projects in progress Between 2018 and 2025, the surface occupied by the 18
Slide 24: A continued deployment of safety equipment financed by the airport tax
The development of non-regulated activities A CONTINUED DEPLOYMENT OF SAFETY EQUIPMENT FINANCED BY THE AIRPORT TAX Implementation of a user fee starting from April 1st, 2019(1): 6% of the costs covered by the airport tax (opex including capex amortization) will remain at the expense of ADP Estimated
Slide 25: A world leading position to strengthen
The development of non-regulated activities A WORLD LEADING POSITION TO STRENGTHEN 2018 2025 Maintaining TRAFFIC FINANCE TRAFFIC FINANCE our world 400 - 450 MPax leading 281 MPax position by implementing 25 c. 27% of 30 - 40 35% - 40% of an ambitious airports airports Groupe ADP’s EBIT Groupe ADP’s
Slide 26: A global leader with the resources to fulfill its ambitions
5 A global leader with the resources to fulfill its ambitions PAGE 26
Slide 27: A rise in the Paris investment plan driven by the regulated scope
A global leader with A RISE IN THE PARIS INVESTMENT PLAN DRIVEN BY the resources to fulfill its ambitions THE REGULATED SCOPE, AT THE SERVICE OF THE GROUP'S AMBITIONS o/w to be invested 2016-2020 2021-2025 between 2019 and 2025 € 4.7 bn € 7.7 bn € 10.0 bn In current € billions for 2016-2017 In const
Slide 28: Revenue, EBITDA and EBIT outlook 2025
A global leader with AN INCREASE OF THE INVESTMENT PLAN IN PARIS PULLED the resources to fulfill its ambitions BY THE REGULATED PERIMETER, SERVING GROUP AMBITIONS REVENUE EBITDA (1) Revenue growth (%) EBITDA growth (%) +40% to +50% +40% to +50% 2018 2025 EBITDA margin (% of revenue) 40% to 45% 40% t
Slide 29: A constant requirement of financial strength
A global leader with the resources to fulfill its ambitions A CONSTANT REQUIREMENT OF FINANCIAL STRENGTH SENSITIVITY OF THE S&P RATING Current rating: A+ stable outlook NFD (2) / EBITDA - « stand-alone » S&P rating, i.e. without French state support - A LIMITED LEVEL OF INDEBTEDNESS FFO (1) / NFD (2
Slide 30: An ability to fully reward our shareholders
A global leader with the resources to fulfill its ambitions AN ABILITY TO FULLY REWARD OUR SHAREHOLDERS Since the IPO, shareholders have always been associated with the growth of Groupe ADP’s results The financial strength of Groupe ADP and its willingness to fully reward its shareholders allows to
Slide 31: Appendices
Appendices PAGE 31
Slide 32: Capacity: an investment plan for the short, medium and long terms
Appendices AN INVESTMENT PLAN FOR THE SHORT, MEDIUM AND LONG TERMS 2021-2025 ERA 2026-2030 ERA Following ERAs 2021 2022 2023 2024 2025 2026 … 2030 2031 … 2028: opening of the first pier and the first Terminal 4 – Phase 1 part of the processor Terminal 4 2037: Terminal 4 Terminal 4 – Phase 2 finalize
Slide 33: A dynamic growth of the traffic in Paris since 2010
Appendices A DYNAMIC GROWTH OF THE TRAFFIC IN PARIS SINCE 2010 EVOLUTION OF THE TRAFFIC IN PARIS SINCE 2010 (IN %) 5.7% 4.5% 3.8% 3.0% 2.8% 2.8% 2.6% 2.7% 2.6% 2.6% 2.4% 2.2% 1.7% 1.8% 0.8% 0.4% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E ADP ADP(Réel : YoY
Slide 34: 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 press release. These forward-looking d