Aeroports De Paris · EURONEXT:ADP
Aeroports De Paris — Groupe ADP — Investor Day (May 2022)
45 slides from Aeroports De Paris's investor day presentation, May 18, 2022
Slide 1: TAV Strategy Thematic Conference, 18 May 2022
TAV STRATEGY THEMATIC CONFERENCE 18 MAY 2022
Slide 2: TAV Strategy Thematic Conference agenda
TAV STRATEGY THEMATIC CONFERENCE 1 2 3 4 5 INTRODUCTION STRATEGY CONCLUSION & FLAGSHIP ASSETS Edward Arkwright Franck Mereyde Edward Arkwright RESPONSIBLE RISK MANAGEMENT Deputy CEO of Groupe ADP & PROFITABLE GROWTH Executive Board Member & FINANCIAL TRAJECTORY Deputy CEO of Groupe ADP & Chairman of
Slide 3: Introduction
INTRODUCTION ARKWRIGHT Deputy CEO of Groupe ADP & Chairman of the Board of TAV Airports 2025 Pioneers | TAV Strategy Thematic conference 3
Slide 4: The international strategy of the Group is at the core of 2025 Pioneers
1 THE INTERNATIONAL STRATEGY OF THE GROUP IS AT THE CORE OF 2025 PIONEERS INTRODUCTION to launch the transition to a new airport model Hospitality always at the heart of a multimodal connecting hub, designed and operated sustainably at the service of the city and the regions, by a multi-local group
Slide 5: A unique international footprint creating value
1 A UNIQUE INTERNATIONAL FOOTPRINT CREATING VALUE INTRODUCTION expertise and network THREE COMPLEMENTARY ENTITIES in terms of geography and exposure to growth 2025 Pioneers | TAV Strategy Thematic conference 5
Slide 6: The first strategic roadmap
1 THE FIRST STRATEGIC ROADMAP INTRODUCTION applied at Group level in a multi-local approach A shared roadmap A global transition based with TAV Airports on local needs and realities GMR Airports roadmap resonates with Groupe ADP roadmap 2025 Pioneers | TAV Strategy Thematic conference 6
Slide 7: Groupe ADP's management of international activities
1 GROUPE ADP’S MANAGEMENT OF INTERNATIONAL ACTIVITIES INTRODUCTION FOCUSED ON OPERATIONAL AND FINANCIAL PERFORMANCE OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE Lead global industrial Develop and roll out an Steer economic Drive growth & operational cooperation operational excellence and industrial
Slide 8: International activities driving long-term value creation
1 INTERNATIONAL ACTIVITIES DRIVING THE GROUP’S LONG-TERM VALUE CREATION INTRODUCTION 2019 2025 2030 2035 25 35 40 15% to to to of the Group’s 35% 45% 50% operating of the of the of the income(1) Group’s Group’s Group’s operating operating operating income(1) income(1) income(1) Return to 2019 group
Slide 9: TAV Airports is a key pillar of ADP international strategy
1 TAV AIRPORTS IS A KEY PILLAR OF ADP INTERNATIONAL STRATEGY INTRODUCTION TAV Airports is our regional Good position to take advantage platform for the development Contribution of TAV Airports to of the recovery phase of traffic in fast growing Africa-Middle the group’s value creation in the medium
Slide 10: TAV Airports & ADP have a long-standing partnership
1 TAV AIRPORTS & ADP HAVE A LONG-STANDING PARTNERSHIP INTRODUCTION TAV Airports Timeline of the partnership Shareholding Structure As of December 31st, 2021 May 16th, 2012: Acquisition of a 38.0% stake in TAV Airports by Groupe ADP1 46.4% 5.1% 1.2% July 7th, 2017: Acquisition of a 8.12% stake 47.4%
Slide 11: Solid governance and renewed management team
1 SOLID GOVERNANCE AND RENEWED MANAGEMENT TEAM INTRODUCTION BOARD OF DIRECTORS’ BOARD OF DIRECTORS’ EXECUTIVE COMMITTEE COMPOSITION COMMITTEES COMPOSITION 11 Board Members Audit Committee 7 members of the committee: (2 members) 1 Executive Board • Chair of the Committee Member Corporate Governance C
Slide 12: Responsible & Profitable Growth
RESPONSIBLE & PROFITABLE GROWTH KAPTAN CEO of TAV Airports 2025 Pioneers | TAV Strategy Thematic conference 12
Slide 13: Overview of the TAV Airports Group
2 OVERVIEW OF THE TAV AIRPORTS GROUP RESPONSIBLE AND PROFITABLE GROWTH TAV Airports Holding Operate 15 airports(*) Airports Services company of which 5 in Turkey Esenboga (100%) ATU (50%) Adnan Menderes (100%) BTA (100%) Gazipasa Alanya (100%) OS (100%) Portfolio Milas Bodrum (100%) TAV Tech. (100%)
Slide 14: Leading airport operator with diversified portfolio & integrated structure
2 LEADING AIRPORT OPERATOR WITH DIVERSIFIED PORTFOLIO RESPONSIBLE AND PROFITABLE GROWTH & INTEGRATED STRUCTURE AIRPORT OPERATIONS Diverse portfolio of 15 airports in 8 countries of Revenue(*) TECHNOLOGY GROUND HANDLING Present on the entire airport value chain DUTY FREE HOSPITALITY, of Revenue(*) FO
Slide 15: TAV Airports' growth strategy
2 TAV AIRPORTS’ GROWTH STRATEGY RESPONSIBLE AND PROFITABLE GROWTH HAVE A STRONG CREDENTIAL FOCUS DEVELOPMENT RELY ON THE DEVELOPMENT AS AIRPORT OPERATOR ON HIGH GROWTH OF NON-AIRLINE REVENUES EMERGING MARKETS Organic Retail PROFITABILITY Cost Operating Inorganic Inorganic Growth Volume Penetration D
Slide 16: TAV is well positioned to capture growth opportunities
2 TAV IS WELL POSITIONED TO CAPTURE GROWTH OPPORTUNITIES RESPONSIBLE AND PROFITABLE GROWTH GEORGIA LATVIA Tbilisi Airport Riga Airport 3.7M Pax in 2019 7.8M Pax in 2019 Management Operator | Concession - BOT of Commercial Areas Batumi Airport Concession - Lease CROATIA 624K Pax in 2019 Operator | Co
Slide 17: Attractive market with strong growth prospects still intact
2 ATTRACTIVE MARKET WITH STRONG GROWTH PROSPECTS STILL INTACT RESPONSIBLE AND PROFITABLE GROWTH Leisure airports are recovering faster than other airports Turkey is the fastest growing aviation market in Europe 2021 vs. 2019 passenger figures Tourist Arrivals in Turkey Tijuana 115% 56.7 53.7 Cancun
Slide 18: Growth strategy bringing resilience
2 GROWTH STRATEGY BRINGING RESILIENCE RESPONSIBLE AND PROFITABLE GROWTH Consistent traffic increase in spite of several adverse contexts 152 Security Ataturk concerns Exits With Ataturk Covid-19 Portfolio Pandemic Without Ataturk 115 (m Passengers) 104 Global Arab 102 95 Financial Spring 89 84 84 Ru
Slide 19: Solid track record of growth
2 SOLID TRACK RECORD OF GROWTH RESPONSIBLE AND PROFITABLE GROWTH With Ataturk REVENUE1 Without Ataturk • High earnings visibility 1,181 (m€) +9.4% 1,079 1,104 1,132 with simple regulatory 881 904 983 framework 847 785 697 749 • Mostly hard currency 627 640 508 522 based revenue 402 301 • Track recor
Slide 20: 2021: a year of consolidation and strong inorganic growth
2 2021: A YEAR OF CONSOLIDATION AND STRONG INORGANIC GROWTH RESPONSIBLE AND PROFITABLE GROWTH Acquisition of Almaty Airport in Kazakhstan Extension of Medinah concession period on April 29th, 2021 and refinancing Extension of Antalya concession until 2051 Restructuration of TAV Tunisia’s debt tender
Slide 21: Havaş - leading ground handling service company
2 HAVAŞ - LEADING GROUND HANDLING SERVICE COMPANY RESPONSIBLE AND PROFITABLE GROWTH Biggest EBITDA contributor in services companies LATVIA 1 PASSENGER SERVICES 2 RAMP SERVICES 3 LOAD CONTROL & FLIGHT OPERATIONS KAZAKHSTAN 4 5 CROATIA REPRESENTATION GENERAL AVIATION GEORGIA & SUPERVISION SERVICES N.
Slide 22: TAV Technologies - leading digital innovation company
2 TAV TECHNOLOGIES – LEADING DIGITAL INNOVATION COMPANY RESPONSIBLE AND PROFITABLE GROWTH WHERE ARE WE? Aviation Software +40 PRODUCTS Products Airport Operations Project Management +40 Airport Passanger &Baggage Processing Projects SERVICES Airport Smart Digital Digital Airport Transformation Solut
Slide 23: Opportunities for business development in services
2 OPPORTUNITIES FOR BUSINESS DEVELOPMENT IN SERVICES RESPONSIBLE AND PROFITABLE GROWTH NETHERLANDS GERMANY LATVIA MACEDONIA STRATEGIC OUTLOOK FOR SERVICE COMPANIES TURKEY KAZAKHSTAN USA SWITZERLAND ITALY GEORGIA UAE FRANCE QATAR CROATIA UZBEKISTAN N. CYPRUS TAV Technologies & TAV SAUDI OS ARABIA BER
Slide 24: Strategy & Flagship Assets
STRATEGY & FLAGSHIP ASSETS MEREYDE Executive Board Member & Chair of the Executive Committee of TAV Airports Feuille de route stratégique « 2025 Pioneers » 24
Slide 25: The three pillars of TAV Airports' strategy
3 THE THREE PILLARS OF TAV AIRPORTS’ STRATEGY STRATEGY & FLAGSHIP ASSETS DIGITAL HOSPITALITY SUSTAINABILITY 2025 Pioneers | TAV Strategy Thematic conference 25
Slide 26: Strong innovation capabilities serving Groupe ADP overall digital strategy
3 STRONG INNOVATION CAPABILITIES SERVING GROUPE ADP STRATEGY & FLAGSHIP ASSETS OVERALL DIGITAL STRATEGY 2025 Pionners Group level commitment All our airports of 3+ mpax will provide at least digital facilities on most of the process of passenger journey (Digital Airport Friendly) by 2025 DIGITAL INN
Slide 27: TAV hospitality model fully aligned with Groupe ADP
3 TAV HOSPITALITY MODEL FULLY ALIGNED WITH GROUPE ADP STRATEGY & FLAGSHIP ASSETS Supportive to our profitable growth strategy AN INTERNATIONAL 34 19 6M+ 65 25K m2 FOOTPRINT airports countries customers lounges Design experience A HIGH QUALITY OF SERVICE A WIDE RANGE OF SERVICES DRIVING CUSTOMER SATI
Slide 28: Sustainability is integral to our operations
3 SUSTAINABILITY IS INTEGRAL TO OUR OPERATIONS STRATEGY & FLAGSHIP ASSETS Energy Performance and carbon impact For all new project of 5M€+: A carbon budget of all new significant building (5M€+) will be made over the lifetime of the new buildings. will follow high standard like Leed Gold. Increase t
Slide 29: Terms of the renewal of Antalya Airport concession
3 TERMS OF THE RENEWAL OF ANTALYA AIRPORT CONCESSION STRATEGY & FLAGSHIP ASSETS OPERATION PERIOD January 2027 to December 2051 TOTAL CONCESSION RENT 7.25 billion € + VAT UPFRONT PAYMENT 1.8125 billion € + VAT were paid as up front rent INVESTMENT PLAN Initial investment of c. 600 m€ to take 2 to 3 y
Slide 30: High & resilient growth & strong recovery amid challenges
3 HIGH & RESILIENT GROWTH & STRONG RECOVERY AMID CHALLENGES STRATEGY & FLAGSHIP ASSETS Antalya Domestic Pax (m) Antalya International Pax (m) Antalya Int Pax vs 2019 Antalya Dom Pax vs 2019 8.3% int pax cagr -38% Security 90% 95% 92% incidents and Russian flight 7.0 85% 80% ban Covid-19 Pandemic 78%
Slide 31: Almaty acquired for USD 422M EV in 2021
3 ALMATY ACQUIRED FOR USD 422M EV IN 2021 STRATEGY & FLAGSHIP ASSETS TAV Holds 85% TRANSACTION KAZAKHSTAN • Almaty Airport is acquired by TAV SPV (85% held by TAV) on April 29, 2021 • 2.7 mn sq km area • Kazakhstan generates roughly 60% of the Central Asia’s GDP CO-INVESTOR • The Kazakhstan Infrastr
Slide 32: Almaty is a defensive asset with attractive growth profile
3 ALMATY IS A DEFENSIVE ASSET WITH ATTRACTIVE GROWTH PROFILE STRATEGY & FLAGSHIP ASSETS Strong post-pandemic recovery of traffic Almaty Int ATM vs 2019 Almaty Dom ATM vs 2019 Almaty EBITDA / TAV Consolidated EBITDA 114% 109% 107% 110% 32% 100% 102% 101% 30% 84% 84% 80% 71% 20% 47% 60% 65% 43% 49% 14
Slide 33: Risk Management and Financial Trajectory
RISK MANAGEMENT AND FINANCIAL TRAJECTORY GERIŞ Deputy CEO & CFO of TAV Airports Feuille de route stratégique « 2025 Pioneers » 33
Slide 34: TAV Airports' guidances
4 TAV AIRPORTS’ GUIDANCES RISK MANAGEMENT AND FINANCIAL TRAJECTORY Recovery of traffic TAV Airports’ EBITDA margin at TAV Airports 115 102-107 44% 45% 45% 44% 42%-45% 42% 102 105 39% 42% 95 37% 84 84 89 89 72 29% 29% 26% 27% 22% 32%- 48 53 52 41 42 71- 35% 15% 30 27 76 7% 2007 2008 2009 2010 2011 20
Slide 35: Most revenue sources are inflation linked
4 MOST REVENUE SOURCES ARE INFLATION LINKED RISK MANAGEMENT AND FINANCIAL TRAJECTORY Revenue Breakdown FY21 % in Total Other Aviation 99.6 19% Passenger Fee 69.6 13% Ground Handling 143.7 28% Inflation Catering 57.6 11% Linked Lounge 21.5 4% Area Allocation &Sublease 22.1 4% Not Duty Free 27.0 5% In
Slide 36: Most revenue is FX based
4 MOST REVENUE IS FX BASED (PROTECTED AGAINST TL DEVALUATION) RISK MANAGEMENT AND FINANCIAL Lira devaluation is strongly correlated with lira inflation. TRAJECTORY REVENUE(1) OPEX(1) (2) SAR; 2% OMR; 2% Other; Other; 17% KZT; 6% 6% SAR; 1% USD; 8% USD; 29% OMR; 2% EUR; 13% TL; 22% KZT; €575m 18% €42
Slide 37: TAV Airports international passenger breakdown by destination (2019)
4 TAV AIRPORTS INTERNATIONAL PASSENGER BREAKDOWN BY DESTINATION (2019) RISK MANAGEMENT AND FINANCIAL TRAJECTORY TAV Turkey Total TAV Airports Total* OTHER; 16% CZECH REPUBLIC; 1% RUSSIA; 31% RUSSIA; 25% ROMANIA; 1% OTHER; 31% DENMARK; 1% BELGIUM; 2% CZECH REPUBLIC; 1% ISRAEL; 2% ROMANIA; 1% SWITZERL
Slide 38: Opex savings
4 OPEX SAVINGS RISK MANAGEMENT AND FINANCIAL Effective response to the pandemic TRAJECTORY • 2020 & 2021 total like for like cash opex(*) saving vs 2019 was €363 m • In 2021 total pax served was 92% above 2020 • Cash opex level is now parallel to the recovery level in international pax served -190.0
Slide 39: Investment process
4 INVESTMENT PROCESS RISK MANAGEMENT AND FINANCIAL TRAJECTORY CRITERIA • High passenger growth potential (at least mid single digit) • Internationally recognized legal • infrastructure Core geography PROCESS • Passenger projection • Service revenue projection • Opex projection • Detailed cash flow p
Slide 40: Risk and compliance
4 RISK AND COMPLIANCE RISK MANAGEMENT AND FINANCIAL Internal Control and Internal Audit activities are managed by the relevant units TRAJECTORY under the Internal Audit & Risk and Compliance Department of TAV Airports Holding. ETHICS AND COMPLIANCE PROGRAM TAV Internal Audit, Risk & Compliance Our G
Slide 41: Conclusion
CONCLUSION ARKWRIGHT Deputy CEO of Groupe ADP & Chairman of the Board of TAV Airports 2025 Pioneers | TAV Strategy Thematic conference 41
Slide 42: TAV Airports is a key asset to deliver Groupe ADP's 2025 Pioneers roadmap
5 CONCLUSION TAV Airports is a key asset to deliver Groupe ADP’s High quality of service: 2025 Pioneers strategic roadmap several airports above score 4 (ACI/ASQ) Best in class digital services Strong environmental credentials: 3 airports ACA / ACI certified Cross-mobility of employees enriching Gro
Slide 43: TAV Airports is a key asset to drive value creation
5 CONCLUSION TAV Airports is a key asset to drive value creation for all Groupe ADP’s stakeholders Enlarged geographical footprint Faster traffic recovery Best positioned to capture growing markets Faster return to financial performance 2025 Pioneers | TAV Strategy Thematic conference 43
Slide 44: Questions & Answers
QUESTIONS & ANSWERS 2025 Pioneers | TAV Strategy Thematic conference 44
Slide 45: 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