Aeroports De Paris · EURONEXT:ADP
Aeroports De Paris — Groupe ADP — FY2017 Earnings Presentation
40 slides from Aeroports De Paris's earnings presentation, Feb 22, 2018
Slide 1: 2017 Full Year Results
2017 FULL YEAR RESULTS 22 February 2018
Slide 2: Agenda
AGENDA 2017 HIGHLIGHTS Augustin de Romanet, Chairman and CEO 2017 FINANCIAL RESULTS Philippe Pascal, CFO OUTLOOK & CONCLUSION Augustin de Romanet, Chairman and CEO Q&A Groupe ADP - 2017 Full Year results|1
Slide 3: 2017 Highlights
01 2017 HIGHLIGHTS Augustin de Romanet Chairman and CEO
Slide 4: 2017 – Solid performance to ensure long-term growth
2017 – SOLID PERFORMANCE TO ENSURE LONG-TERM GROWTH Strong growth in Groupe ADP traffic (+7.4%) including a 4.5% increase for / Paris Aéroport and a 9.8% increase for TAV Airports Solid performance Improvement of all financial indicators / Continued control over expenses Payout ratio of 60%
Slide 5: 2017 – A year of internal and external growth
2017 – A YEAR OF INTERNAL AND EXTERNAL GROWTH / REVENUE / EBITDA Effect of the Effect of the +22.7% increased stake +31.1% increased stake in TAV Airports in TAV Airports M€ 3,617 as at H2 2017 1,567 as at H2 2017 2,947 616 280 1,195 +1.8% +7.7% 3,001 1,287 EBITDA/CA(2) 40.6% 42.9% % 2016 2017 2016
Slide 6: 2017 – Year of development of the Paris airports
2017 – YEAR OF DEVELOPMENT OF THE PARIS AIRPORTS Launch of major aeronautical projects Construction of connecting buildings at Paris-Orly and Paris-CDG: the junction of the T1 international satellites and the link between 2B and 2D terminals at Paris-CDG, the connecting building at Paris-Orly Op
Slide 7: 2017 – Year of the roll-out of Groupe ADP's international strategy
2017 – YEAR OF THE ROLL-OUT OF GROUPE ADP'S INTERNATIONAL STRATEGY CONSOLIDATION & INTEGRATION TAV AIRPORTS AMMAN CUBA JORDAN Increased from Medium term 38% to 46.12% Closing in progress project (July 2017) Terminal at Queen Alia d’AmmanAirport ©A.Leduc – AIG BUSINESS DEVELOPMENT & INNOVATION ADP OP
Slide 8: 2017 Financial Results
02 2017 FINANCIAL RESULTS Philippe PASCAL CFO
Slide 9: Improvement for all financial indicators
IMPROVEMENT FOR ALL FINANCIAL INDICATORS IN A CONTEXT OF GROWTH IN TRAFFIC AND MAJOR OPERATIONS +22.7% €m Increase in airport fees (+5.2%) driven by traffic dynamics and improvements in Effect of the the traffic mix 3,617 increased Revenue 2,947 616 stake in TAV Traffic-driven Increased retail a
Slide 10: Groupe ADP traffic increased by 7.4%
GROUPE ADP TRAFFIC INCREASED BY 7.4% GROUPE ADP IS BENEFITING FROM GOOD INTERNATIONAL DYNAMICS / ADP VS PEERS mpax 2017 / 2016 Paris-CDG+ORY 102 +4.5% Dynamism of Paris Aéroport traffic London-Heathrow 78 +3.1% CDG: +5.4% at 69.5 mpax Amsterdam-Schiphol 69 +7.7% ORY: +2.6 % at 32.0 mpax Frankf
Slide 11: Growth in Paris Aéroport traffic in 2017
GROWTH IN PARIS AÉROPORT TRAFFIC (PARISIAN AIRPORTS) IN 2017 DRIVEN BY THE DYNAMISM OF INTERNATIONAL TRAFFIC Total traffic International traffic(1) Connecting rate(2) Load factor 101.5 mPax 40.0% + 4.5 % +6.2% 23.1% -0.8pt 85.0% +3.5pt France Europe North America 16.3% 43.8% 10.0% +4.2% +1.0% +6.9%
Slide 12: Revenue increased €670 million to €3,617 million
REVENUE INCREASED €670 MILLION TO €3,617 MILLION DYNAMISM OF AERONAUTICAL ACTIVITIES / CONSOLIDATED REVENUE: + 22.7 % Revision of internal rents (with no impact on Group revenue) €m Decrease in activity at Retail & Services: ADP Ingénierie Aviation: +4.0% +1.2% 3,617 Deconsolidation of Hub Saf
Slide 13: Increase in EBITDA in 2017 thanks to traffic dynamics and control over expenses
INCREASE IN EBITDA IN 2017 THANKS TO TRAFFIC DYNAMICS AND CONTROL OVER EXPENSES Of which €63 million capital gain from Cargo Hub Control of Groupe ADP's operating expenses: +0.1% before full consolidation of TAV Airports Operating expenses of ADP SA: +0.3% €m 1,567 280 +7.7% 1,287 40 7 18 12 2 1,195
Slide 14: Control over expenses trajectory
CONTROL OVER EXPENSES TRAJECTORY Increase in ADP SA's operating expenses is under control (+1.5% per year on average between 2015 and 2017) which is in line with our commitment of control over expenses (+2.2%(1) per year on average between 2015 and 2020) Reorganisation of all operational divisions
Slide 15: Back to growth for TAV Airports in 2017
BACK TO GROWTH FOR TAV AIRPORTS IN 2017 / GROWTH IN ALL INDICATORS FOR TAV AIRPORTS In m€ (unless otherwise stated) TAV AIRPORTS 2017 2017/2016 Passengers (mpax) 115 +9.8% 2017 results for TAV Airports Revenues 1,139 +2.1% TAV Airport's total traffic expected to increase between EBITDA 481 +14.7
Slide 16: Net income attributable to the Group increased by €136 million in 2017
NET INCOME ATTRIBUTABLE TO THE GROUP INCREASED BY €136 MILLION IN 2017 Negative impact of the non-renewal in 2017 of the capital gain from the sale of Positive impact of the non-renewal in Mexican airports in 2016 (-€58 million) 2017 of the exceptional impairment linked to TAV C in 2016 Increase i
Slide 17: Solid financial situation as of 31 December 2017
SOLID FINANCIAL SITUATION AS OF 31 DECEMBER 2017 / DEBTS REPAYMENT SCHEDULE (€m) 1 910 31/12/2017 31/12/2016 760 Groupe ADP 713 Groupe ADP 93 (excl. TAV A 682 full conso) 163 82 579 576 585 578 Net debt 3,797 3,144 2,709 85 (€m) 79 76 78 495 485 95 Share of fixed- 85 85% 90% 85% rate debt(1) 667 Ave
Slide 18: Outlook & Conclusion
03 OUTLOOK & CONCLUSION Augustin de Romanet Chairman and CEO
Slide 19: Confirmation of Group's 2020 targets
CONFIRMATION OF GROUP'S 2020 TARGETS (1) Traffic growth assumption: +2.5 % CAGR2016-2020 Convergence of regulated(2) ROCE with WACC(3)......... 5.4% in 2020e Limit the growth in parent-company +30% to +40% growth operating expenses to a level below or Control of the parent company's operating ex
Slide 20: The Terminal 2E Hall K flagship continues to grow
THE TERMINAL 2E HALL K FLAGSHIP CONTINUES TO GROW New advertising spaces The future Buy Paris Groupe ADP - 2017 Full Year results|19
Slide 21: All drivers are activated to achieve the sales/passenger target for 2020
ALL DRIVERS ARE ACTIVATED TO HELP ACHIEVE THE SALES/PASSENGER(1) TARGET FOR 2020 Target of €23 sales/passenger for a full year after delivery of infrastructures in 2020 Large projects aimed at standardising and expanding our offering in QUALITY OF THE our large international terminals: from the clas
Slide 22: A continued and resilient strategy of value creation for the long-term
A CONTINUED AND RESILIENT STRATEGY OF VALUE CREATION FOR THE LONG-TERM Significant land A Paris airport system Know-how of the Significant potential reserves irrigated by capable of attracting entire aeronautical for international the development of future traffic value chain development urban trans
Slide 23: Unique potential for aeronautical development in Paris
UNIQUE POTENTIAL FOR AERONAUTICAL DEVELOPMENT IN PARIS LAUNCH OF DETAILED STUDIES IN 2018 •1st delivery in 2023- •Global traffic 2024: 7 to 10 million •4 parallel New doubles every 15 passengers Capacity runways Increased terminal years •30 to 40 million reservess •Unique in traffic at Paris- •Need
Slide 24: 2018 Forecasts
2018 FORECASTS Traffic growth assumption for Paris Aéroport between +2.5% and + 3.5% Group traffic Traffic growth assumption for TAV Airports between +10% and +12% Consolidated EBITDA: increase of between 10% and 15% in 2018 compared to 2017, with the full-year effect of the full consolidation
Slide 25: Appendices
04 APPENDICES
Slide 26: 2017 Detailed P&L
2017 DETAILED P&L In €m (unless stated otherwise) 2017 2016 2017/2016 Passengers Groupe ADP (mpax)(1)(2) 228.2 212.4 +7.4% +15.8mPax Of which Paris Aéroport passengers (MPax) 101.5 97.2 +4.5% +4.3mPax Revenue 3,617 2,947 +22.7% +€670m Operating expenses (2,142) (1,807) +18.5% +€335m Other incomes an
Slide 27: Aviation 2017 Financial Statements
AVIATION 2017 FINANCIAL STATEMENTS / Revenue (€m) / EBITDA & Op. income from operating activities (€m) +€66m +4.0% +12.8% 1,813 7 551 EBITDA 10 488 Op. income 8 from 10 operating 272 activities 34 Airport fees: +€52m 186 1,743 27.0 % 10.4 % 28.0 % 10.7 % Margin 28.0 % 10.7 % 30.4 % 15.0 % 2016 Passe
Slide 28: Aviation: Group traffic by airport
AVIATION GROUP TRAFFIC BY AIRPORT Stake- Group traffic weighted 2017/2016 Groupe ADP (in million passengers) traffic change(3) stake(1) (mPax) Paris Aéroport (CDG+ORY) @ 100% 101.5 +4.5% Zagreb @ 20.8% 0.6 +11.8% Jeddah-Hajj @ 5% 0.4 +2.9% Amman @ 9.5% 0.8 +6.8% Groupe ADP Mauricius @ 10% 0.4 +5.4%
Slide 29: Groupe ADP traffic: monthly change
GROUPE ADP TRAFFIC MONTHLY CHANGE IN PARIS AÉROPORT TRAFFIC / MONTHLY CHANGE IN PARIS AÉROPORT TRAFFIC Q1 Q2 Q3 Q4 2017: +5.0% 2017: +5.0% 2017: +4.2% 2017: +3.7% 2016: +1.9% 2016: +1.2% 2016: -0.1% 2016: +4.9% Monthly Mpax change 10 +10% +8% 9 +6% 8 +4% 7 +2% +0% 6 -2% 5 -4% Jan. Fev. Mar. April Ma
Slide 30: Retail and Services 2017 Financial Statements
RETAIL AND SERVICES 2017 FINANCIAL STATEMENTS / Revenue (€m) / EBITDA & Op. income from operating activities (€m) +1.2% -1.2% 953 +1.0% 4 5 527 533 EBITDA 4 1 1 Op. income 941 4 409 from 404 operating Retail act. : +€10m activities 57.7 % 47.1 % 56.0 % 43.5 % Margin 2016 Airside Landside Bars & Car
Slide 31: Retail and Services: commercial rents and sales/pax
RETAIL AND SERVICES FOCUS ON COMMERCIAL RENTS AND SALES/PAX(1) IN 2017 / RETAIL ACTIVITIES / SALES/PAX 2017 (€): STABLE AT €18.2 +2.2% 459 +0.4% In €m 449 33.3 33.0 Airside shops: +1.6% 299 303 18.2 18.2 7.1 7.1 Landside shops: +5.4% 18 19 Bars & restaurants: +10.2% 39 42 Advertising: -0.8% 50 50 -1
Slide 32: Retail and Services: commercial joint ventures
RETAIL AND SERVICES FOCUS ON COMMERCIAL JOINT VENTURES(1) In €m Revenue(2) EBITDA Net result +7.1% 866 808 SDA (Retailing joint venture with Lagardère Travel 24 Retail) 20 Revenue up by 4.8 %, driven by the recovery in international traffic 721 16 689 Relay@ADP 18 Revenue up by 14.7 %, drive
Slide 33: Real Estate 2017 Financial Statements
REAL ESTATE 2017 FINANCIAL STATEMENTS / Revenue (€m) / EBITDA & Op. income from operating activities (€m) +€57m EBITDA -4.8% +€60m Op. income 263 209 from 6 14 250 5 10 operating 161 activities 149 External revenue: -€3€ 104 61.9 % 39.4 % 56.7 % 39.8 % Margin 56.7% 39.7% 83.5% 64.1% 2016 revenue Lan
Slide 34: Real Estate: projects pipeline as at end of December 2017
REAL ESTATE PROJECTS PIPELINE AS AT THE END OF DECEMBER 2017 Floorspace Airport Segment ADP Role Operator Project Opening (sq.m.) CDG Diversification Developer Sogafro/SDV Offices and warehouses 2016 37,500 CDG Aeronautical Investor Aerolima Equipment maintenance centre 2016 4,700 CDG Aeronautical D
Slide 35: International and Airports Developments 2017 Financial Statements
INTERNATIONAL AND AIRPORTS DEVELOPMENTS 2017 FINANCIAL STATEMENTS / Revenue (€m) / EBITDA & Op. income from operating activities (€m) +€585m 682 252 EBITDA Op. income 97 186 from 616 operating 23 activities 8 3 2016 revenue ADP Ingénierie ADP International(1) TAV Airports 2017 revenue -49 2016 2017
Slide 36: International footprint – 2017 passenger traffic
INTERNATIONAL AND AIRPORTS DEVELOPMENTS INTERNATIONAL FOOTPRINT – 2017 PASSENGER TRAFFIC France Schiphol Group (8%) Liège (25.6%) Zagreb (ADP 21% & TAV 15%) Macedonia (100%) Georgia (76%) Paris-CDG: 69.5mpax 68.5mpax Strategic partner 3.1mpax Skopje & Ohrid: 2.0m pax Tbilisi & Batumi: 3.
Slide 37: Other Activities 2017 Financial Statements
OTHER ACTIVITIES 2017 FINANCIAL STATEMENTS / Revenue (€m) / EBITDA & Op. income from operating activities (€m) -35.1% -2.5% -12.5% 29 223 217 EBITDA 10 15 25 Op. income from operating 14 activities 9 2016 revenue Hub One Hub Safe 2017 revenue 12.8 % 5.8 % 12.9 % 6.4 % 12.9% 6.4% 11.6% 4.3% Margin 20
Slide 38: CDG Express project: overall schedule
CDG EXPRESS PROJECT: OVERALL SCHEDULE End 2023-start 2014 2015 2016 2017 2018 2024 CDG Express Creation Launch of Traffic and Start of rail of project Feasibility Financial consultation Commissioning infrastructure network studies studies arrangements to appoint the of CDG Express studies works comp
Slide 39: Advanced extra-financial performance
ADVANCED EXTRA-FINANCIAL PERFORMANCE MAIN ACHIEVEMENTS FOR 2017 AND FORECASTS Extra-financial rating of Groupe ADP at the end of 2016 82/100 (+4 points/2014) Commitments in all areas of Corporate Social Responsibility in our strategic plan Included in the main ISR(1) indexes, including DJSI, FTSE4GO
Slide 40: 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