Aeroports de Paris · EURONEXT:ADP
Aeroports de Paris — Groupe ADP — H1 2018 Earnings Presentation
37 slides from Aeroports de Paris's earnings presentation, Jul 30, 2018
Slide 1: 2018 Half-Year Results
2018 HALF-YEAR RESULTS 30 July 2018 Groupe ADP – 2018 half-year results | 0 GROUPE ADP
Slide 2: Agenda
AGENDA 2018 FIRST HALF-YEAR HIGHLIGHTS Augustin de Romanet, Chairman and CEO 2018 FIRST HALF-YEAR FINANCIAL RESULTS Philippe Pascal, CFO OUTLOOK & CONCLUSION Augustin de Romanet, Chairman and CEO Groupe ADP – 2018 half-year results | 1
Slide 3: 2018 First Half-Year Highlights
01 2018 FIRST HALF-YEAR HIGHLIGHTS Augustin de Romanet Chairman and CEO Groupe ADP – 2018 half-year results | 2
Slide 4: Highlights of the First Half-Year
HIGHLIGHTS OF THE FIRST HALF-YEAR Strong dynamic of the Group’s traffic (+10.9%) in spite of the strikes in Paris (loss of about 750,000 pax) Met deadlines on ERA 3 main infrastructure projects, out of which the commissionning of the luggage sorting system under hall L of terminal 2E, during the 2nd
Slide 5: Solid Performance of All the Indicators
SOLID PERFORMANCE OF ALL THE INDICATORS / REVENUE / EBITDA +43.9% +33.6% Contribution Contribution 2,099 of AIG 815 of AIG 53 Cap. gain 15 Contribution of linked to the Contribution of 544 610 228 1,459 TAV Airports cargo hub TAV Airports buildings 63 +3.0% +4.5% 1,502 EBITDA/revenue(2) 547 571 % 41
Slide 6: A New Step Abroad: Takeover of Airport International Group
A NEW STEP ABROAD TAKE OVER OF AIRPORT INTERNATIONAL GROUP (AIG) Transaction « AIG », operator of Queen Alia International Airport (QAIA) in Amman, Jordan, since 2007 for 25 years Groupe ADP’s stake: 51% (vs. 9.5% since 2007) Amount of the transaction: USD265m Take-over date: April 2018 Perf
Slide 7: 2018 First Half-Year Financial Results
02 2018 FIRST HALF-YEAR FINANCIAL RESULTS Philippe Pascal CFO Groupe ADP – 2018 half-year results | 6
Slide 8: Growth of the Financial Indicators
GROWTH OF THE FINANCIAL INDICATORS +43.9% REVENUE Contribution of 2,099 AIG Growth in airport fees (+4.5%) driven by traffic dynamics and the increase in tariffs 53 Contribution of from 1 April 2018, in spite of the strikes 544 1,459 TAV Airports Growth in retail and services activities (+3.3%)
Slide 9: Groupe ADP's Traffic Up by 10.9%
GROUPE ADP’S TRAFFIC UP BY 10.9% GROUPE ADP IS BENEFITING FROM STRONG INTERNATIONAL DYNAMICS / ADP vs. PEERS mPax 2018 / 2017 Paris-CDG+ORY 50 +3.0% Dynamism of Paris Aéroport’s traffic: CDG: +3.0%, at 33.9 mPax London-Heathrow 38 +2.5% ORY: +2.9%, at 16.0 mPax Amsterdam-Schiphol 34 +5.4% Po
Slide 10: Growth in Paris Aéroport Traffic over H1 2018
GROWTH IN PARIS AÉROPORT TRAFFIC (PARISIAN AIRPORTS) OVER H1 2018 DRIVEN BY THE DYNAMISM OF INTERNATIONAL TRAFFIC Paris Aéroport International Connecting rate(2) Load factor total traffic traffic(1) 50 mPax 40.1% 21.5% 85.3% +3.0% +5.6% -1.4pt +2.5pt EUROPE NORTH AMERICA FRANCE 44.0% 9.7% 15.8% +3.0
Slide 11: Revenue Up by 43.9% to €2,099 Million
REVENUE UP BY 43.9% TO €2,099 MILLION DYNAMISM OF AERONAUTICAL ACTIVITIES €m +43.9% 2,099 53 Mainly Hub Safe’s Aviation: Retail and services : deconsolidation(1) +3.0% +3.3% 544 1,502 7 1 3 2 6 4 4 43 38 1,459 23 Good revenue dynamics from rents, including the full acquisition of the "Dôme" building
Slide 12: Growth in EBITDA in H1 2018
GROWTH IN EBITDA IN H1 2018 THANKS TO THE DYNAMISM OF TRAFFIC AND CONTROL OVER OPERATING EXPENSES Control over Groupe ADP’s operating expenses: +0.5% excl. the full consolidation of TAV Airports and AIG vs. H1 2017 Operating expenses of ADP SA: +0.1% vs. H1 2017 +33.6% €m Of which €63 million capita
Slide 13: Net Income Attributable to the Group Increased by 26.9%
NET INCOME ATTRIBUTABLE TO THE GROUP INCREASED BY 26.9% IN H1 2018 Of which full consolidation of: Of which full consolidation of: Of which full consolidation of: Provision on international TAV Airports: +€228m TAV Airports: -€138m stake: €14m (vs. €46m TAV Airports: -€55m in H1 2017) AIG: +
Slide 14: TAV Airports
TAV AIRPORTS Main indicators Highlights H1 2018/H1 Acquisition of a 49%-stake in Antalya in May 2018 In €m (unless otherwise stated) H1 2018 2017 for €360m: Passengers (mPax) 71 +18% End of concession: 2024 Revenue 545 +5% Co-control with Fraport, accounted for as Operating expenses(1) 318
Slide 15: Financial Situation as of 30 June 2018
FINANCIAL SITUATION AS OF 30 JUNE 2018 DEBTS REPAYMENT SCHEDULE (€ MILLION) 839 32 708 127 680 31 649 656 5 623 113 590 57 60 591 62 23 562 39 4 35 77 83 87 74 114 138 680 279 613 564 29 515 513 513 513 413 413 149 101 116 9 12 101 79 37 24 104 24 13 13 13 11 2018 2019 2020 2021 2022 2023 2024 2025
Slide 16: Outlook & Conclusion
03 OUTLOOK & CONCLUSION Augustin de Romanet Chairman and CEO Groupe ADP – 2018 half-year results | 15
Slide 17: Revision of 2018 Forecasts & Confirmation of 2020 Forecasts
REVISION OF 2018 FORECASTS & CONFIRMATION OF 2020 FORECASTS Traffic growth assumption for Paris Aéroport maintained between +2.5% and +3.5% in 2018 Group traffic vs 2017 => revision Revision of TAV Airports traffic growth assumption: increase above 30% in 2018 (vs. between +10% and +12% previous
Slide 18: An Industrial Success: Continuous Evolutions to Assist Traffic Growth
AN INDUSTRIAL SUCCESS: CONTINUOUS EVOLUTIONS TO ASSIST TRAFFIC GROWTH An industrial success story … … and a group changing identity Orly Eastern pier 1945 Millions Pax extension 100 CDG 2G Creation of the public institution CDG 2E S4 + CDG 2E AC junction 2005 80 CDG runway 3 CDG 2E S3 Conversion int
Slide 19: An Economical Success: A Resilient Model of Value Creation
AN ECONOMICAL SUCCESS: A RESILIENT MODEL OF VALUE CREATION The passenger-customer at the heart of our attention A strict financial discipline and a control over expenses to allow a moderate tariffs evolution on the long-term A model of regulation that creates value thanks to the adjusted till system
Slide 20: Important Growth Outlooks
IMPORTANT GROWTH OUTLOOKS Capacity reserves to attract global growth Doubling of global traffic every 15 years A non-constrained capacity in Paris with 10 runways in total An integrated Parisian airport system Platforms serving the Grand Paris A hub in competition with the rest of the world
Slide 21: Evolution of Our Professions Toward the Connected Airport
EVOLUTION OF OUR PROFESSIONS TOWARD THE CONNECTED AIRPORT… ACCESSIBILITY & FLUIDITY OF THE PASSENGER PATH INNOVATION & DIGITALISATION CONNECTIVITY THE AIRPORT CITY AT THE HEART OF THE TERRITORIES QUALITY OF SERVICE ENVIRONMENT & BIODIVERSITY Groupe ADP – 2018 half-year results | 20
Slide 22: In Paris and Abroad
… IN PARIS AND ABROAD An emblematic and ambitious project in Paris: Influence of ADP Ingénierie over the world thanks Terminal 4 to its recognised expertise in term of design, Several phases for the building by 2032-2037 engineering and airport management (gain of the design of Beijing and Lon
Slide 23: Provisions of PACTE Draft Bill Related to Groupe ADP
PROVISIONS OF « PACTE » DRAFT BILL (ART. 44 À 50) RELATED TO GROUPE ADP Main provisions: Authorization of the transfer to private sector of the majority of Groupe ADP's capital Modification of the legal regime : ▪ To put a time limit of 70 years on the right to operate Parisian airports, whereup
Slide 24: Appendices
04 APPENDICES Groupe ADP – 2018 half-year results | 23
Slide 25: 2017 Regulated ROCE at 5.05%
2017 REGULATED ROCE AT 5.05% IN LINE WITH THE 2020 TARGET OF 5.4% BY 2020 Combined effect of Improvement in increase in traffic and tariffs regulated operating Financial discipline In millions of euros 2017 2016 income regarding regulated expenses Regulated operating income before 424 342 corpor
Slide 26: Detailed Group Income Statement as at H1 2018
DETAILED GROUP INCOME STATEMENT AS AT H1 2018 (In €m unless stated otherwise) H1 2018 H1 2017 2018/2017 Passengers Groupe ADP (mPax) 130.4 117.6 +10.9% +12.8mPax Of which Paris Aéroport passengers (mPax) 49.9 48.5 +3.0% +1.4mPax Revenue 2,099 1,459 +43.9% +€640m Of which TAV Airports 544 - - +€544m
Slide 27: Aviation
AVIATION H1 2018 INCOME STATEMENT / EBITDA & OP. INCOME FROM ORDINARY / REVENUE (€ MILLION) ACTIVITIES (€ MILLION) EBITDA +24.2% Op. income +3.0% from ord. 906 +9.0% activities 3 2 3 264 3 2 242 18 879 Airport fees: +€23m 124 100 27,0 % 10,4 % 28,0 % 10,7 % Margin 27.5 % 11.3 % 29.1 % 13.7 % H1 2017
Slide 28: Aviation: Group Traffic by Airport
AVIATION GROUP TRAFFIC BY AIRPORT Stake- Group traffic Groupe ADP weighted H1 2018 / (in million passengers) stake (1) traffic H1 2017 (3) (mPax) Paris Aéroport (CDG+ORY) @ 100% 49.9 +3.0% Zagreb @ 20.8% 0.3 +10.2% Jeddah-Hajj @ 5% 0.2 -9.1% Amman @ 100% 3.9 +7.6% Groupe ADP Mauricius @ 10% 0.2 +3.8
Slide 29: Aviation: Monthly Change in Paris Aéroport Traffic
AVIATION MONTHLY CHANGE IN PARIS AÉROPORT TRAFFIC Q1 Q2 Q3 Q4 2018: +3.7% 2018: +2.3% 2017: +4.2% 2017: +3.7% 2017: +5.0% 2017: +5.0% Monthly mPax change 10 +8% +7% 9 +6% +5% 8 +4% +3% 7 +2% +1% 6 +0% -1% 5 -2% Jan. Feb. Mar. April May June July Aug. Sept. Oct. Nov. Dec. 2017 passenger traffic 2018
Slide 30: Retail and Services
RETAIL AND SERVICES H1 2018 INCOME STATEMENT / EBITDA & OP. INCOME FROM ORDINARY / REVENUE (€ MILLION) +3.3% ACTIVITIES (€ MILLION) -8.0% EBITDA 478 -4.0% Op. income 6 253 from ord. 243 3 activities 3 1 195 463 4 180 Retail activities: +€6m 54.6% 57,7 % 42.1% 47,1 % 50.7% 56,0 % 37.5% 43,5 % Margin
Slide 31: Retail and Services: Commercial Rents and Sales/Pax
RETAIL AND SERVICES FOCUS ON COMMERCIAL RENTS AND SALES/PAX(1) DURING H1 2018 / RETAIL ACTIVITIES / SALES/PAX H1 2018 (€): €17.9 in €m +3.0% 225 219 -1.3% 34.0 32.2 -8,5 % Airside shops: +2.9% 145 149 18.1 17.9 -8,3 % Landside shops: +7.6% 8 9 6.8 7.2 Bars and restaurants: +14.9% 20 22 Advertising:
Slide 32: Retail and Services: Commercial Joint Ventures
RETAIL AND SERVICES FOCUS ON COMMERCIAL JOINT VENTURES IN H1 2018 REVENUE EBITDA NET INCOME SDA (retailing JV with Lagardère +2.9% Travel Retail) 415 403 Revenue virtually stable (+0.5%) notably -28.7% impacted by the modernizing works in the 11 terminal 2E Relay@ADP 339 8 338 Revenue up by
Slide 33: Real Estate
REAL ESTATE H1 2018 INCOME STATEMENT / EBITDA & OP. INCOME FROM ORDINARY / REVENUE (€ MILLION) ACTIVITIES (€ MILLION) +5.3% -54.8% EBITDA 2 -45.0% Op. income 122 from ord. 7 activities 2 98 External revenue: +€5m 137 130 67 44 61,9 % 39,4 % 56,7 % 39,8 % H1 2017 Buildings Others Internal H1 2018 93.
Slide 34: Real Estate: Projects Pipeline at End of June 2018
REAL ESTATE PROJECTS PIPELINE AS AT THE END OF JUNE 2018 Airport Segment ADP Role Operator Project Opening Floorspace (sq.m.) CDG Diversification Developer Sogafro/SDV Offices and warehouses 2016 37,500 CDG Aeronautical Investor Aerolima Equipment maintenance centre (phase 1) 2016 4,300 CDG Aeronaut
Slide 35: International and Airport Development
INTERNATIONAL AND AIRPORT DEVELOPMENT H1 2018 INCOME STATEMENT / EBITDA & OP. INCOME FROM ORDINARY / REVENUE (€ MILLION) ACTIVITIES (€ MILLION) +€596m 624 230 EBITDA Op. income 544 from ord. activities 116 28 53 1 1 H1 2017 ADP ADP Of which TAV Airports H1 2018 revenue Ingénierie International AIG r
Slide 36: Other Activities
OTHER ACTIVITIES H1 2018 INCOME STATEMENT / EBITDA & OP.INCOME FROM ORDINARY / REVENUE (€ MILLION) ACTIVITIES (€ MILLION) +9.8% EBITDA +1.3% Op. income from ord. 12 13 activities -37.0% 115 3 40 6 6 72 Margin 10.8% 12,8 % 4.8% 5,8 % 17.4% 12,9 % 8.4% 6,4 % H1 2017 revenue Hub One Hub Safe H1 2018 re
Slide 37: 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