Aena Sme Sa · BME:AENA
Aena Sme Sa — Investor Day (November 2022)
61 slides from Aena Sme Sa's investor day presentation, Nov 16, 2022
Slide 1: Strategic Plan 2022-2026
airports for you Strategic Plan 2022-2026
Slide 2: Legal Notice
2 LEGAL NOTICE * This document and the information contained therein have been prepared by Aena S.M.E., S.A. in relation exclusively to the submission of its Strategic Plan 2022-2026, which will take place on 16 November 2022 and is for informational purposes only. Any modality of use or exploitatio
Slide 3: Strategic Plan 2022-2026
Strategic Plan 2022-2026 3 Maurici Lucena Javier Marín Mª José Cuenda Chairman and Managing Director – Managing Director – Chief Executive Officer Airports Commercial and Real Estate Context Strategic Aeronautical International Commercial Airport Cities and objectives activity activity activity anci
Slide 4: Chairman and Chief Executive Officer
4 Chairman and Chief Executive Officer
Slide 5: Context
5 Context
Slide 6: Aena plays a fundamental role in connectivity, placing Spain at the centre of world tourism
6 Aena plays a fundamental role in connectivity, placing Spain at the centre of world tourism 2019 data for Spain: 46 2 airports heliports 2,361,045 167 flight commercial >200,000 m² operations airlines dedicated to retail and food and beverage spaces 275 M. 120,000 passengers parking spaces Interna
Slide 7: Catalyst for the socio-economic development of the regions where it operates
7 Catalyst for the socio-economic development of the regions where it operates and a key player in tourism and transport Data 2019 Passengers 5.9% 82% Employees Airlines Air Transport on Spain’s GDP of visitors arrived by air in Spain 12.4% 1.8 M. Business partners Investors Tourism industry in Spai
Slide 8: Global leader in airport infrastructure management by passenger volume
8 Global leader in airport infrastructure management by passenger volume 2019 traffic, business group (millions of passengers) 393.3 Spanish Network 60,2 60.2 350.4 International majority stakes 1 57.9 284.1 270.2 International non-majority stakes 2 Peers 275.2 1 Includes traffic of Luton, Northeast
Slide 9: Worldwide passenger traffic expected to grow at CAGR of between 3.3% and 4.3%
9 Worldwide passenger traffic expected to grow at CAGR of between 3.3% and 4.3% in the next 20 years, driven by the emerging markets 2020-2040 CAGR (%) 4.5-5.5% Asia Pacific 2.1-2.7% North America 3.6-5.6% Middle East 2.9-5.1% Latin America 3.3-4.3% 2.1-3.4% 3.3-5.5% Europe Africa Source: 20-year tr
Slide 10: New challenges, once the pandemic is over
10 New challenges, once the pandemic is over Economic development Industry Risks Geopolitical risks impacting the economic trends. Lack of available staff in some geographies potentially impacting service quality levels. Macroeconomic: growth, inflation, interest rates... Structural increase in airp
Slide 11: The scope of the airport activities expands beyond the aviation business
11 The scope of the airport activities expands beyond the aviation business Traditional airport Managing the infrastructure safely, efficiently and consistently. Vs. Beyond the airport We understand the needs of We use technology and data We are committed to the our passengers and the to generate ne
Slide 12: Strategic objectives
12 Strategic objectives
Slide 13: Strategic Framework
13 Strategic Framework “The world’s safest, most efficient, sustainable and welcoming airports, catalysts for economy and tourism and value generators for our shareholders, our customers and the society”. Growth through diversification Develop the core Aeronautical Commercial activity activity busin
Slide 14: Aeronautical activity in Spain
14 Aeronautical activity in Spain We have recovered more We will exceed pre- The interim regime of our We will lay the traffic than our peers, regulatory framework in foundations for capacity with no operational COVID-19 traffic (275 Spain will end in 2025. growth in the next disruption, while milli
Slide 15: Aeronautical activity
15 Aeronautical activity Structural changes are Energy cost has become a significant taking place in the driver for cost increases in 2021 and cost base since the 2022; management tools for its pre-pandemic years. control are already designed and being implemented. We will remain the Our Photovoltai
Slide 16: Commercial activity
16 Commercial activity Since the start of the New tenders are We are renewing our Business revenues summer season, the rendering 2023 MAG’s commercial offering aggregate sales of our 13% higher than 2019’s. proposal as part of the forecasted to grow in commercial lines have By 2026 MAG’s will major
Slide 17: International activity
17 International activity Our priority is to Brazil, where we Current We will continue to We aim to acquire consolidate and manage 20% of the selectively focus on maximise the value country’s traffic, is a International highly attractive additional assets of the international strategic market for in
Slide 18: Diversification towards new businesses
18 Diversification towards new businesses Airport Cities project We will continue with our plans at Josep We will seize other opportunities in ancillary already launched Tarradellas Barcelona- El Prat, Málaga-Costa businesses to our core business, such as logistics, del Sol, Valencia and mobility, t
Slide 19: Sustainability and key strategic enablers
19 Sustainability and key strategic enablers
Slide 20: Sustainability
20 Sustainability Undisputable commitment €550 million Our compliance will We work for the to sustainability by setting investments associated continue to be sustainable transition ambitious goals to with our Climate scrutinised at the of the air transport sector achieve carbon Action General Shareh
Slide 21: Carbon neutrality: the path towards decarbonisation
21 Carbon neutrality: the path towards decarbonisation starts with becoming a network of green airports Carbon neutrality Reduce CO2 emissions in 2026 (Aena’s emissions) 2026 % reduced + offset emissions % offset emissions % reduced emissions 5 airports 1 level 3+ 100% (neutrality) 2 airports 1 leve
Slide 22: Sustainable Aviation: contributing to aviation decarbonisation
22 Sustainable Aviation: we want to contribute to aviation decarbonisation beyond airport emissions Action lines Strategic objectives Electric charging points 3,800 3,000 3,100 3,150 1,500 600 198 Sustainable handling fleet (%) 78% 40% 44% 39% 23% 23% 23% Clean aircraft Efficiency Sustainable propul
Slide 23: Social sustainability and people development
23 We will continue to implement initiatives of social sustainability and people development Relationship with the community People development Active participation in corporate sustainability rating indices We will support Universities and We will achieve a minimum of Research Centres in environmen
Slide 24: Key enablers: innovation, technology, customer focus, culture
24 Key enablers Innovation, technology Customer Culture and digitalisation focus and talent We have an innovation plan based on technology and digitalisation aimed to and We will transform the way in We will guide the strengthen our competitiveness and ensure a sustainable and consistent growth. whi
Slide 25: Economic-financial objectives
25 Economic-financial objectives
Slide 26: Positive business performance will drive financial metrics
26 Positive business performance will drive financial metrics 2019 EBITDA level1: Net debt/EBITDA2 to be reached between ratio: c.2x by 2026. 2024 and 2025. EBITDA margin2 above 55% from 2025 onwards. 1 Data referring to the consolidated EBITDA 2 Data referring to the group parent company: Aena S.M.
Slide 27: Strong commitment with our shareholders
27 Strong commitment with our shareholders 80% pay-out. Pay-out calculated on the net profit excluding Remaining the most attractive accounting adjustments due to the effect of discounts company in the sector in terms applied on the contractual MAG as a result of the circumstances of dividend policy
Slide 28: Managing Director - Airports
28 Managing Director - Airports
Slide 29: Aeronautical activity
29 Aeronautical activity
Slide 30: The aviation business strategy pursues three objectives
30 The aviation business strategy pursues three objectives Contribute to increasing Maintain the Ensure that traffic volumes leadership position in infrastructures have consider in DORA 2. operational efficiency, sufficient capacity to achieving the required accommodate for the levels of safety and
Slide 31: Updated traffic scenarios. Recovery of pre-COVID-19 levels expected in 2024
31 Updated traffic scenarios. Recovery of pre-COVID-19 levels expected in 2024 Actual Traffic Revised traffic scenarios (millions of passengers) Passenger traffic recovery percentages over 2019 315.3 DORA2 Low Scenario High Scenario 301.6 287.9 266.0 Vs. 2019 Vs. 2019 Vs. 2019 287.9 275.21 242.2 274
Slide 32: The interim regime of our regulatory framework will end in 2025
32 The interim regime of our regulatory framework will end in 2025 IMAP1 DORA II (€/passenger) IMAAJ2 DORA II (€/passenger) Over the interim period limits were 9.95 10.01 set on some parameters: 9.89 9.89 9.89 9.89 9.89 IMAP IMAAJ 2022 2023 2024 2025 2026 OPEX / ATU P Index CAPEX 1 Annual maximum re
Slide 33: We remain the most efficient airport operator, while unit costs exceed pre-pandemic level
33 We remain the most efficient airport operator, while unit costs exceed their pre-pandemic level There has been a structural change in the pre-pandemic OPEX: minimum wage, safety and quality requirements established by regulations. Departures and arrivals of passengers on a typical day at MAD in 2
Slide 34: We have tools that will mitigate the impact on OPEX
34 We have tools that will mitigate the impact on OPEX P-index 2023: 0.72% c. €18 M The competitive tension in The unregulated business % OPEX1 awarded in the period the market will again contributes to offsetting 100% adjust margins. inflation through energy 90% 85% cost pass-through and 80% higher
Slide 35: Photovoltaic energy will help to reduce the electric bill
35 Current OMIP forecasts and the progressive input from generated photovoltaic energy will help to reduce the electric bill Throughout the plan period, market risks 14 10 154 MWp due to Photovoltaic airports, airports with access 27% over total compensation will be 950 GWh/year. and connection prod
Slide 36: Total investment in Spain 2022-2026 amounts to €2,916 million
36 The total investment in Spain in the period 2022-2026 amounts to €2,916 million, with an annual average of €583 million Scheduled annual investment (€M) Total 625.8 Ø 583 541.7 557.2 589.2 601.7 46.5 35.8 2,916 59 38.2 226.2 46.7 133.7 59.2 82.3 117.7 46.5 439.4 448.5 459.8 447.9 437.5 456.3 2,25
Slide 37: International activity
37 International activity
Slide 38: International companies participated by Aena
38 The international companies currently participated by Aena have a significant volume of passengers and generate positive financial results Majority stakes Non-majority stakes The revenue generated by Luton in 9M 2022 was €202 million, 7% of the Luton 1 51% 2013 18,0M. total of the Aena Group. GAP
Slide 39: Priority is consolidation of the international portfolio
39 The priority of the period is the consolidation of the international portfolio and deliver the business plans Target: EBITDA generated by the Criteria international activity ~15% 3.5% 15% High quality and attractive Operations that generate assets from a profitability-risk synergies through the n
Slide 40: BOAB meets Aena's international investment criteria
40 Bloque de Once Aeropuertos de Brasil, BOAB meets Aena’s international investment criteria... Market Regulatory Project potential Framework Brazil is the largest economy in The regulatory framework is 100% owned airport Synergies in the largest airport Latin America, the ninth in the clear and gen
Slide 41: ...generating value for Aena
41 ...generating value for Aena Valuation Value generation levers The upfront payment of The valuation of the Future airport charges adjusted Synergies with ANB. the concession was concession would result by inflation. R$2,450 million. into an Enterprise Value of approximately Potential for increase
Slide 42: The new Congonhas will meet safety and quality requirements
42 The new Congonhas will meet the safety and quality requirements defined by the Brazilian government and increase commercial offering Relocation of the contact Airfield actions (e.g. new CAPEX evolution at Congonhas parking stations at the front of rapid exit taxiway). the terminal building. 31.0%
Slide 43: Managing Director - Commercial and Real Estate
43 Managing Director - Commercial and Real Estate
Slide 44: Commercial activity
44 Commercial activity
Slide 45: Commercial is a strategic business line contributing 37% of EBITDA
45 Commercial is a strategic business line with a pre-pandemic growth rate of 10% and contributing 37% of EBITDA in 2019 CAGR EBITDA by business line 5% 2016-2019 2019 Aeronautical 4.6% 58% 2,766 37% Commercial million 9.7% Aeronautical Other business lines 5.8% Commercial Other business lines
Slide 46: Current metrics
46 Current metrics Sales1 of Income from More than 237 The results of these tenders represent an Commercial businesses tenders awarded increase in MAG rents Operators managed in-house since November 2021 compared to equivalent (324 premises in the contracts in 2019: Operators: 96% Parking Lots1: 101
Slide 47: Increasing commercial revenue per pax by 12% in 2026
47 Increasing the commercial revenue per pax by 12% in 2026 in comparison with 2019 Aena S.M.E., S.A. Evolution of commercial revenue1 2019-2026 (€ m) New tender Significant growth of strategies businesses managed by Commercial revenue Growth Aena (car parks and VIP per passenger 2026 vs. 2019 loung
Slide 48: The world's largest Duty-Free Shop tender
48 The world’s largest Duty-Free Shop tender Main Distribution Growth figures Duty-Free / Duty Paid strategy (2022) Promotion of digitalisation and > sqm 60,000 35% More commercial spaces new technologies of commercial area Duty Paid > 85 Wider offering Driving long-term contracts Duty-Free Shops >
Slide 49: Madrid-Barajas food and beverage tender
49 Adolfo Suárez Madrid-Barajas Airport food and beverage tender Main figures Growth strategy Higher competition / Better adaptation to the different New operators needs for each passenger type sqm 19,050 55 premises (21 lots) Larger commercial areas Electronic auction process Eight-year term Better
Slide 50: Rent-a-car tender
50 Rent-a-car tender targets to maximise value integrating new mobility agents (VTC, car sharing, maintenance...) Main figures of the Growth current contract strategies Operators Forecast revenue 2022 16 €175 million (14% of total revenue) Licences as of Definition of the new Aena Layout optimisatio
Slide 51: Car parks and VIP Services
51 Positive evolution of businesses managed by Aena: Car parks and VIP Services Main figures The contribution to 2022 Forecast 2022 Revenue No. of digital operations commercial revenue will be Recovery % over 2019 per 1000 pax: close to 94% 18.39 17% (vs. 14.11 in 2019). Growth strategies Pricing Te
Slide 52: Strengthening interaction with the customer and digital services
52 We’re strengthening interaction with the customer, expanding our offer of digital services and our loyalty programme throughout the entire customer journey and beyond the airport Mobile guidance Advance booking and E-commerce tool at airports in all delivery service platform stages of the journey
Slide 53: Airport Cities Ancillary businesses
53 Airport Cities Ancillary businesses
Slide 54: Development of the Madrid-Barajas Airport City
54 We have inaugurated the development of the Adolfo Suárez Madrid-Barajas Airport City and will make the most of the experience in other airports Josep Tarradellas Adolfo Suárez Barcelona-El Prat Airport Madrid-Barajas Airport First launches for logistics and hotel in T2 (2024 and 2025). Already la
Slide 55: Main Airport City projects
55 Main Airport City projects Adolfo Suárez Madrid-Barajas Airport Additional 295 ha to be awarded The first 32 ha have been awarded for logistic uses, Surface area Planned USES for approximately €170 million of the plot (ha) Schedule (€116 million CAPEX North Logistics Polo T4 90 2H 2025 payment ob
Slide 56: Main Airport City projects
56 Main Airport City projects Josep Tarradellas Barcelona-El Prat Airport Málaga-Costa del Sol Airport The Airport City Project will start with the launch Initial launch for the development of a logistics hub. of 36 ha for logistics. Logistic hub Contest Launch: H1 2025. USES Surface area Planned La
Slide 57: Assessing growth and diversification platforms
57 Assessing different growth and diversification platforms where we have significant competitive advantages Technology Mobility Travel Logistics Data-driven services. Additional sustainable services hub services mobility services based Comprehensive Baggage management on connection between customer
Slide 58: Conclusions
58 Conclusions
Slide 59: Conclusions
59 Conclusions Exceed We will be at the We will continue to be Increased forefront of the undisputed leaders international pre-COVID industry in operational business contribution traffic by 2024 decarbonisation efficiency despite to EBITDA to 15% and reach process. structural cost in 2026. increases
Slide 60: Conclusions: renewed commitment with our shareholders
60 Conclusions Economic-financial Between 2024 and In 2025 the In 2026 the net objectives: 2025 we expect to EBITDA margin1 debt/EBITDA ratio1 recover the 2019 expected to be is expected consolidated above 55%. to be around 2x. EBITDA. We renew our commitment with our shareholders: Resulting in an D
Slide 61: Thank you
61 Thank you Company committed to the United Nations Sustainable Development Goals (SDGs)