Aeroports De Paris · EURONEXT:ADP
Aeroports De Paris — FY2014 Earnings Presentation
47 slides from Aeroports De Paris's earnings presentation, Feb 19, 2015
Slide 1: 2014 Full Year Results
2014 Full Year Results 19 February 2015
Slide 2: Agenda
Agenda 2014 highlights Augustin de Romanet, Chairman and CEO Financial results Edward Arkwright, Chief Financial Officer Preparation of the 2016-2020 ERA and of the strategic plan Augustin de Romanet, Chairman and CEO Q&A 2014 Full Year Results│ 1
Slide 3: 2014 highlights
2014 highlights Augustin de Romanet Chairman and CEO 2014 Full Year Results│ 2
Slide 4: 2014 highlights
2014 highlights With +5.7%, Aéroports de Paris has the best growth among Passenger traffic growth European groups despite Air France pilots strike in September 2014 Extra-financial rating Attained the “Excellence” distinction (EthiFinance) Full year results EBITDA and net result attributable t
Slide 5: 2014 Full Year Results in line with our forecasts
2014 Full Year Results in line with our forecasts(1)… Revenue EBITDA 1150 In €m 2,754 2,791 1,109 +1.3% +3.4% 1100 1,072 1050 39.7% EBITDA/ 1000 38.9% Revenue (%) 950 2013 2014 2013 2014 pro forma pro forma Operating income from ordinary activities(2) Net result attributable to the Group 737 402 740
Slide 6: …And with 2011-2015 targets
…And with 2011-2015 targets Assessment of the achievement of 2011-2015 targets(1) 2011-2015 targets at the end of 2015 Traffic +1.9% < x < +2.9% +2.7%(2) (CAGR 2010-2015) OPEX Parent Co. x < +3% +2.0% < x < 3.0% (CAGR 2012-2015) EBITDA +25% < x < +35% +25% < x < +35% (2015 vs. 2009(3)) Retail €19 €1
Slide 7: Customer satisfaction level higher than 2015 target
Customer satisfaction level higher than 2015 target(1) Record level of 89.8% at Paris-CDG in Q4 2014 Variations in overall satisfaction of arriving and departing passengers Innovation in welcoming and orientation of passengers and new services “Orientation information” kiosks 89.8% CDG labelled
Slide 8: Delivery of all identified real estate projects since 2011
Delivery of all identified real estate projects since 2011 Real estate pipeline in sqm(1) Main opening in 2014: 335,600 320,400 Citizen M hotel (Paris-CDG): 6,100 sqm 281,400 291,100 77,900 77,800 Main ongoing projects to be delivered by the end 2015 : 158,500 Accor hotels (Paris-CDG): 27,000 m²
Slide 9: Continued enhancement of the potential of retail
Continued enhancement of the potential of retail 2 main priorities Development of “Fashion and Launching of new projects Accessories” activities Positive impact in 2015 of the new central square Refurbishment of Duty Free area in the central of Hall K (2E pier) at Paris-CDG area in Terminal 1 at
Slide 10: An international line up full of new releases in 2014
An international line up full of new releases in 2014… July September TAV Airports wins the concession of ADP Ingénierie wins the challenge of design for Milas-Bodrum Airport the terminal 1 of the new airport at Beijing 2014 Full Year Results│ 9
Slide 11: Gain of the concession of Santiago de Chile airport
… that carries on in 2015 with the gain of the concession of Santiago de Chile airport A major strategic investment for Aéroports de Paris group Broad influence over an area with high potential Tapping of Group’s pooled skills Joint-control of the project company by ADP (45%) and Vinci (40%) Growth
Slide 12: Financial Results
Financial Results Edward Arkwright Chief Financial Officer 2014 Full Year Results│ 11
Slide 13: Growth of operating income from ordinary activities driven by associates
Growth of op. inc. from ord. act. driven by the increasing contribution of airport associates (+71.6% to €73m) Parent company: Aéroports de Paris SA(1) Subsidiaries & Associates(2) Group International and airport Aviation Retail and services Real estate Other activities developments €79m (+15.3%) €2
Slide 14: ADP group traffic
ADP group traffic Best growth among European groups despite September 2014 strike ADP vs peers Monthly variations in ADP traffic mpax 2014 / 2013 Q1 Q2 Q3 Q4 2014: +3.6% 2014: +4.6% 2014: -0.6% 2014: +3.2% Paris-CDG + ORY 93 + 2.6 % 2013: -0.8% 2013: +1.6% 2013: +2.0% 2013: +3.7% Monthly + 1.4 % In
Slide 15: Paris airports traffic
Paris airports traffic Strong growth of low cost carriers % total ADP Variation arrival and departure traffic 2014 / 2013 France 17.3% -2.0% North America Europe 9.5% +1.4% 43.0% +5.3% French Overseas Territories Middle East Asia/ Pacific 4.1% -0.2% 4.7% +6.7% 6.9% +3.1% Africa Latin America 11.2% +
Slide 16: Strong growth in sales/PAX in 2014
Strong growth in sales/PAX (+3.0%) in 2014 thanks to rebound in Duty Free sales in Q4 Constant and sustained growth in sales/PAX(€)(1) since 2006 Duty Free sales/PAX: +3.1% to €32.9 19.0 DF Sales/PAX +8.0% to 37.1€ in Q4 2014 18.2 17.7 Favourable impact of the weakening euro over the second +3.0
Slide 17: EBITDA up by 3.4% thanks to control over OPEX
EBITDA up by 3.4 % thanks to control over OPEX Var. In €m 2014 2014/2013 Revenue 2,791 +1.3% Capitalised production 79 +20.2% Favourable context: Operating costs (1,772) +0.6% No snowfall over the first half of 2014 and shutdown of Including: the cogeneration plant (less costs for € 31M) consumables
Slide 18: 2014 target of cumulated savings reached
2014 target(1) of cumulated savings reached Between €15m and €25m of additional savings in 2015 Trajectory of structural savings 71 - 81 Structural savings in 2014 : €30m In €m Decrease of €25m in OPEX 15-25 €5m linked to the VDS (300 departures planned, 56(2) including 250 departures already ef
Slide 19: Contribution of TAV airports to group operating income
Contribution of TAV airports to the group operating income from ordinary activities: €40m (x4 vs. 2013) TAV Airports 2013 2014 TAV Airports (IFRIC 12 adjusted): Share of NRAG(1) @ 38% 50 83 Traffic: +13.7%, to 95.1m pax Share of PPA(2) @ 38% -41 -43 EBITDA: +14.0%, to €434m Share of NRAG after @
Slide 20: Marked rebound of NRAG: +33.3%
Marked rebound of NRAG(1): +33.3% Strong contribution of associates and improvement of financial result Base effect from 2013 VDS provision -€24m Decrease in debt cost TAV Airports. TAV Construction Stability of the nominal Schiphol tax rate at 38% Commercial JVs - 18.5% + 1.0% - 72.0% 26 2
Slide 21: Sound financial situation as at 31 December 2014
Sound financial situation as at 31 December 2014 Debt Schedule (€m) 2014 2013 667 600 Net Debt (€bn) 2.8 3.0 550 500 500 Share of fixed-rate 85% 84% 400 400 debt(2) Average maturity 7.5 years 7.8 years 166 Average cost 2.9% 3.2% 135 100 79% Gearing 70% pro forma 2015 2016 2017 2018 2019 2020 2021 20
Slide 22: Preparation of the 2016-2020 ERA and of the strategic plan
Preparation of the 2016-2020 ERA and of the strategic plan Augustin de Romanet Chairman and CEO 2014 Full Year Results│ 21
Slide 23: ADP: the strategy of a Group on the road to conquest
ADP: the strategy of a Group on the road to conquest To be the leading Group in design, building and management of airports Optimising Attracting Expanding Guaranteeing operational Becoming the preferred Be a solution integrator performance choice of our clients Strengthening organisational Promotin
Slide 24: CDG has strong potential to accommodate traffic growth
In an increasingly competitive landscape, CDG has strong potential to accommodate growth in traffic The global traffic is expected to nearly double by … in a strong competitive landscape in Europe with 2030… the Middle East bn pax M pax 2008-2013 35 6 +6% p.y 1992-2007 +4.6% p.y 5 billion 1976-1991
Slide 25: A proposal for 2016-2020 ERA
A proposal for 2016-2020 ERA promoting the competitiveness of the air transport sector Supported by the Unprecedented Effort A Balanced Proposal of a Group on the Road to Conquest Traffic conquest, especially international and Passenger traffic (CAGR2016-2020): +2.5% connecting thanks to our strateg
Slide 26: An ambitious and selective regulated CAPEX programme
An ambitious and selective regulated CAPEX programme Compared CAPEX programmes of 2006-2010, 2011-2015 and 2016-2020 ERAs (€m 2014) : 984 1021 969 822 712 653 477 380 176 225 197 213 157 65 53 114 33 108 91 Maintenance Regulatory upgrade Capacity optimisation / Access improvement Competitiveness of
Slide 27: Traffic conquest thanks to a new tariff policy
Traffic conquest thanks to a new tariff policy Improve the competitiveness of international traffic: - Decrease in the share of passenger fees A more competitive tariff Promote the basing of aircraft (including cargo): structure - Exemption from night parking fees Simplify tariff structure D
Slide 28: The client at the heart of the 2016-2020 ERA
The client at the heart of the 2016-2020 ERA 2 categories of indicators Having a homogeneous client experience Quality standard Guaranteeing our indicators fundamentals Setting up hospitality at the heart of our process Deploying and ensuring standards of quality (Penalty) Develop excellence i
Slide 29: Conclusion
Conclusion 2015 challenges: Finalization of the ERA 3 and of the strategic plan Strong commitment on access to CDG: Grand Paris, CDG Express, RER … 2015 forecasts of ADP Group: Traffic growth assumption: +2.6% compared to 2014 Tariffs: +2.4% compared to 2014 as at 1st April 2015 EBITDA: ma
Slide 30: 2015 indicative timetable
2015 indicative timetable January April/May mid-July end of July Q4 2016-2020 ERA Formal Hearings of the ADP consultation with Consultative Aviation Finalisation of the stakeholders contract with the proposal Commission State Public 2016-2020 Consultation Document ERA signature Group life Group stra
Slide 31: Q&A
Paris - CDG 1974-2014 Ajouter une photo Q&A 2014 Full Year Results│ 30
Slide 32: Appendix
Appendix 2014 Full Year Results│ 31
Slide 33: Santiago de Chile Airport
Santiago de Chile Airport Highlights of the deal Overview of the deal Structure Vinci ADPM Astaldi Airports ADPM: 45% Structure Vinci Airports: 40% 45% 40% 15% Astaldi 15% Management and renovation of the Technical current facilities Ministry of public Concession Specifications works Company
Slide 34: Impact of the creation of the new segment: International and Airport Developments
Impact of the creation of the new segment: “International and Airport Developments” Name International and Other activities International and airport developments: airport developments Q1 H1 9M 2013 Q1 2013 H1 2013 9M 2013 In €m 2013 Pro 2013 pro 2013 Pro 2013 Pro 100% ADPI 100% ADPI forma forma
Slide 35: Impact of the review of employee benefits obligations on 2013 P&L
Impact of the review of employee benefits obligations on 2013 P&L Impact on consolidated P&L Impact on Aviation segment 2013 2013 Aviation In €m As Adjustment Aviation pro forma In €m Adjustment published (2013 pro (2013 as published) Revenue 2 754 - 2 754 forma) Other ordinary operational revenue 1
Slide 36: 2014 Group detailed P&L
2014 Group detailed P&L In €m 2013 2014 2014/2013 (unless stated otherwise) pro forma ADP passengers (in m) 92.7 90.3 +2.6% Revenue 2,791 2,754 + 1.3 % EBITDA 1,109 1,072 + 3.4 % Depreciation and amortisation (445) (437) + 1.8 % Share in associates and joint ventures from operating activities 73 43
Slide 37: Aviation
Aviation P&L Revenue: +1.6% EBITDA: +1.0% In €m Operating Income from ordinary activities: +2.1% 1,645 1,671 In €m Other 43 44 21.8% 21.7% Revenue from airport safety 502 485 and security services Ancillary fees 191 191 Parking 127 130 Landing 196 203 359 363 EBITDA 4.9% 5.0% Op. Income Airport fees
Slide 38: Aviation: Group traffic by airport
Aviation Group traffic by airport Stake-weighted In millions of passengers ADP stake(1) traffic 2014 / 2013 (m pax) Paris (CDG + Orly) @ 100% 92.7 + 2.6 % @ 25.5%(2) 3.7 + 10.6 % Mexico regional airports Zagreb @ 21% 0.5 + 5.7 % ADP Group @ 5% 0.4 + 23.0 % Jeddah – Hajj Amman @ 9.5% 0.7 + 9.0 % Maur
Slide 39: Retail and Services
Retail and Services P&L EBITDA : +2.7% / Operating Income from Revenue: +0.7% ordinary activities: +2.4% In €m 949 956 In €m 57.5% 58.6% 233 224 Other 47.6% 48.4% Rentals 105 105 Industrial Services 60 43 Car parks 165 183 560 545 452 463 EBITDA Op. Income Retail 400 +3.8% from ordinary activities 3
Slide 40: Retail and Services: Focus on commercial joint ventures
Retail and Services Focus on commercial joint ventures Revenue(1): EBITDA(1): -0.4% +4.1% Net result(1): +5.8% SDA (retailing JV with Aélia): In €m Revenue up by 4.0%: 813 37 37 – Traffic: +2.6% 781 46 44 6 7 68 – Growth in Fashion and Core business activities 65 5 5 – Impact of the opening of the
Slide 41: Retail and Services: Commercial rents and Sales/PAX
Retail and Services Detail Of Commercial Rents And Sales/PAX(1) Retail: +3.8% Sales/PAX 2014: +3.0%, to €18.2 400 In €m 386 Sales/PAX (€) 70 + 4.0 % 35 32.9 68 32.0 +3.1% - 0.6 % 32 30 32 15 + 8.1 % 14 25 20 17.7 18.2 +3.0% 15 273 284 + 4.1 % 10 6.8 7.2 +5.8% 5 0 2013 2014 2013 2014 Rents Duty Paid
Slide 42: Real Estate
Real Estate P&L EBITDA: +5.1% / Operating Income from Revenue: -0.3% ordinary activities: +5.8% In €m 265 264 In €m 60.1% 63.4% Internal revenue 53 52 46.7% 44.0% Other 26 27 Buildings 86 84 159 168 External revenue 117 124 EBITDA Op. Income Land from ordinary activities 100 101 Margin rate 2013 pro
Slide 43: Real Estate: Pipeline of projects
Real Estate Pipeline of projects at the end of 2014: 335,600 sqm to be delivered by 2015 Platform Segment ADP Role Operator Projects Opening Surface (sqm) Delivered projects 257,700 CDG Diversification Developer IBIS Hotel extension 2011 8,600 ORY Diversification Developer Compass Operation premises
Slide 44: International and Airport Developments
International and Airport Developments P&L EBITDA: +€11m / Operating Income Revenue: +15.3% In €m from ordinary activities: x3 In €m 78.1% 79 69 14 Aéroports de Paris 15 Management 30.4% 62 ADP 65 Ingénierie 54 21 EBITDA Op. Income from ordinary activities -13 -2 Margin rate 2013 pro forma 2014 2013
Slide 45: International footprint
International and Airport Developments International footprint 13 Regional airports in North and France Schiphol Group (8%) Liège (25.6%) Zagreb (ADP 21% and TAV Macedonia (100%) Georgia (76%) Central Mexico (25.5%) Paris-CDG: 63.8m pax 55.0m pax 0.6m tonnes of freight 15%) Skopje & Ohrid: 1
Slide 46: Other Activities
Other Activities P&L EBITDA: -3.7% / Operating Income from Revenue: +0.5% ordinary activities: -12.6% In €m In €m 201 202 ADP 5 10.2% 9.8% 5 Hub Safe (1) 66 70 21 20 3.4% Hub One 130 127 2.9% EBITDA Op. Income 7 6 from ordinary activities Margin rate 2013 pro forma 2014 2013 pro forma 2014 Hub One (
Slide 47: Forward looking statements
Forward looking statements 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 f