Aeroports De Paris · EURONEXT:ADP
Aeroports De Paris — Groupe ADP — Investor Day (2019)
31 slides from Aeroports De Paris's investor day presentation, 2019
Slide 1: International Activities – Investor Day 2019
INTERNATIONAL ACTIVITIES INVESTOR DAY 2019
Slide 2: Content
CONTENT 1 Who we are The global leader in airport operations 2 Our ambition for international Sustain our leadership and positively contribute to Groupe ADP value 3 Our plan ahead Build on our distinctive value proposition to enter new markets 4 Appendices PAGE 2
Slide 3: Who we are
1 Who we are The global leader in airport operations PAGE 3
Slide 4: Groupe ADP is the leader of the airport industry
Who we are GROUPE ADP IS THE LEADER OF THE AIRPORT INDUSTRY Key figures Groupe ADP network of airports in 20181 Worldwide Europe Middle-East Regional offices Airport 25 airports 9 airports 9 airports (of which 14 from TAV Airports) 5 countries 3 countries 13 countries 41% of Groupe ADP traffic1 54%
Slide 5: International and airport development activities account for ~30% of revenues and EBIT in 2018
Who we are INTERNATIONAL AND AIRPORT DEVELOPMENT ACTIVITIES ACCOUNT FOR ~30% OF REVENUES AND EBIT IN 2018 2018 Key figures In € M Revenues EBITDA EBIT (ROC) 941 322 242 263 97 471 3,066 1,376 898 Groupe ADP Groupe ADP Groupe ADP 4,478 1,961 1,237 Groupe ADP excl. International * International (exclu
Slide 6: International activities capitalize on the significant expertise of Groupe ADP across the value chain
Who we are INTERNATIONAL ACTIVITIES CAPITALIZE ON THE SIGNIFICANT EXPERTISE OF GROUPE ADP ACROSS THE ENTIRE VALUE CHAIN 70 Years of airport experience in managing Parisian hubs ~26,000 dedicated staff 1 Major pool of expertise (e.g., ADP Ingénierie, TAV Airports, Service companies) Full coverage of
Slide 7: Groupe ADP has deep expertise across the airport value chain
Who we are GROUPE ADP HAS DEEP EXPERTISE ACROSS THE AIRPORT VALUE CHAIN Studies, design Project development Project and master planning finance management Development of traffic Safe and efficient Transfer and and commercial revenues operation commissioning Harmonious development with the community
Slide 8: Compliance and ethics are of paramount importance to Groupe ADP
Who we are COMPLIANCE AND ETHICS ARE OF PARAMOUNT IMPORTANCE TO GROUPE ADP, ALONG WITH A ZERO TOLERANCE POLICY No compromise with compliance International code of conduct in 8 languages 1 Compliance program implementation in all our controlled international assets A policy with 13 guidelines and a c
Slide 9: ADP Ingénierie: an ambassador for our international expansion
Who we are ADP INGÉNIERIE: AN AMBASSADOR FOR OUR INTERNATIONAL EXPANSION Key figures Contribution to international activities +400 experts Distinctive integrated value proposition along the value chain, offering consulting and design services +750 references Solid credentials in engineering in Europ
Slide 10: TAV Airports: an acquisition that enabled Groupe ADP to accelerate international expansion
Who we are TAV AIRPORTS: AN ACQUISITION THAT SUCCESSFULLY ENABLED GROUPE ADP TO ACCELERATE INTERNATIONAL EXPANSION Key figures Key achievements €1.2 bn Revenue in 2018 Successful acquisition of Antalya airport – 2nd airport based on international traffic in Turkey 156 million Passengers in 2018 Join
Slide 11: Strong track-record of international expansion across geographies
Who we are STRONG TRACK-RECORD OF INTERNATIONAL EXPANSION ACROSS GEOGRAPHIES Selected examples Major achievements Successful transition from public to Zagreb private entity international airport, Croatia +24% in traffic growth in 2014-2018 x2 on EBITDA per passenger in 2014-18 Santiago de Chile Smoo
Slide 12: International activities strongly contribute to the Group
Who we are INTERNATIONAL ACTIVITIES STRONGLY CONTRIBUTE TO THE GROUP ~30%1 of Group EBIT contribution in 2018, with stronger growth profile of international activities Opportunity to balance portfolio of assets, in terms of return and risk exposure (e.g., Japan in mature countries vs. Cuba in emergi
Slide 13: Business model for international expansion has evolved from asset-light to majority operator
Who we are BUSINESS MODEL FOR INTERNATIONAL EXPANSION HAS EVOLVED FROM ASSET-LIGHT TO MAJORITY OPERATOR, IN LINE WITH OUR LONG-TERM COMMITMENT Since 2016 Consolidation model 2010 – 2015 Scale-up Before 2010 Entrepreneurship Majority operator consolidating revenues Strategy Expanding investor and mar
Slide 14: Our ambition for international
2 Our ambition for international Sustain our leadership and positively contribute to Groupe ADP value PAGE 14
Slide 15: International activities of Groupe ADP benefit from favorable market conditions
Our ambition for international INTERNATIONAL ACTIVITIES OF GROUPE ADP BENEFIT FROM FAVORABLE MARKET CONDITIONS Air traffic is expected to double over the next 20 years to reach ~8Bn passengers in 2037 Privatization opportunities are emerging worldwide, with only ~14% of airports currently being mana
Slide 16: Our ambition: 400-450 million passengers, ~35-40% of EBIT contribution and 4.0 ASQ rating by 2025
Our ambition for international OUR AMBITION IS TO ACHIEVE (I) 400-450 MILLIONS PASSENGERS, (II) ~35-40% OF EBIT CONTRIBUTION AND (III) 4.0 ASQ RATING FOR ALL OUR AIRPORTS BY 2025 Vision 2018 Value 2025 Ambition Be the world-leading Passengers1 281M 400-450M airport operator in managed traffic Operat
Slide 17: Our plan ahead
3 Our plan ahead Build on our distinctive value proposition to enter new markets PAGE 17
Slide 18: Strategic pillars will shape the strategy of Groupe ADP internationally
Our plan ahead 5 STRATEGIC PILLARS WILL SHAPE THE STRATEGY OF GROUPE ADP INTERNATIONALLY 1 A distinctive value proposition 2 Capitalize on ADP Ingénierie and service companies 3 A focus on selected geographical clusters 4 Acquire airport groups to accelerate growth An adaptive management of asset po
Slide 19: A distinctive value proposition, building on expertise, innovation and proximity
Our plan ahead 1/5 A DISTINCTIVE VALUE PROPOSITION, BUILDING ON OUR EXPERTISE, INNOVATION AND PROXIMITY WITH LOCAL STAKEHOLDERS What we do How we do it We deliver We empower long term our people value Performance transformation Integrated expertise along and growth development the value chain Delive
Slide 20: ADP Ingénierie: a strong contribution to expand internationally on airport operations
Our plan ahead 2/5 ADP INGÉNIERIE A STRONG CONTRIBUTION TO EXPAND INTERNATIONALLY ON AIRPORT OPERATIONS Key achievements Chengdu airport in China, designed by ADP Ingénierie 1 Acquisitions Integrated approach and joint bid preparation 2 Value creation Development and expansion of current ADP Interna
Slide 21: Service companies strengthen the value proposition
Our plan ahead 2/5 SERVICE COMPANIES STRENGTHEN THE VALUE PROPOSITION THROUGH A WIDE PRESENCE ACROSS MULTIPLE ACTIVITIES (E.G., RETAIL, FOOD & BEVERAGE) 1 1 1 1 Retail EBIT (ROC) 1 Services companies Food & Security Beverage = 7% of GROUPE ADP EBIT (2018) Mix of Group services companies EBIT 2018 Re
Slide 22: A focus on selected geographical clusters to accelerate expansion
Our plan ahead 3/5 A FOCUS ON SELECTED GEOGRAPHICAL CLUSTERS TO ACCELERATE EXPANSION(1) IN ACTIVE AREAS AND OPEN UP NEW GEOGRAPHIES Active core clusters Upcoming core clusters Clusters with mature potential, expected Clusters with promising potential, to be core contributors to our 2025 ambition tha
Slide 23: A dual-growth approach – acquisition of stakes in airport groups to accelerate growth
Our plan ahead 4/5 A DUAL-GROWTH APPROACH – ACQUISITION OF STAKES IN AIRPORT GROUPE TO ACCELERATE GROWTH AND BUILD PLATFORMS FOR FUTURE EXPANSION WITHIN PRIORITIZED CLUSTERS Acquisition of stakes in Airport groups Specific assets acquisition in core clusters in core clusters Acquiring stakes in airp
Slide 24: Acquisition of TAV Airports is a first step of our multi-local strategy
Our plan ahead 4/5 ACQUISITION OF TAV AIRPORTS IS A FIRST STEP OF OUR MULTI-LOCAL STRATEGY TAV Airports – an example of Short-term priorities at TAV Airports an acquisition in a core cluster 1 Acquisition of TAV Airport is a first step Seamlessly close TAV Istanbul in our multi-local strategy Decisi
Slide 25: An adaptive management of asset portfolio in terms of risk-return
Our plan ahead 5/5 AN ADAPTIVE MANAGEMENT OF ASSET PORTFOLIO IN TERMS OF RISK-RETURN TO ENSURE A BALANCED PORTFOLIO COMPLEMENTING THE PARISIAN ACTIVITIES 2025 International portfolio ILLUSTRATIVE EXAMPLE EBITDA, € M IRR (Internal Rate of Return) 15-25% 65-75% 5-15% Risk level Low Medium High Interna
Slide 26: Closing note
We are the global leader in airport CLOSING operations with 281M of managed traffic NOTE in 2018 across 25 airports Our ambition is to sustain our leadership through our international arm, by reaching 400-450 M passengers and contributing 35-40% of the Group EBIT by 2025 A solid plan to move ahead,
Slide 27: Appendices
3 Appendices PAGE 27
Slide 28: Key figures – International and airport development
Appendices KEY FIGURES – INTERNATIONAL AND AIRPORT DEVELOPMENT FY 2018 Key figures In € M Revenues EBITDA EBIT (ROC) 941 471 322 263 242 97 Total International Total International Total International 1,412 585 339 International and Airport Development excl. Istanbul 1 Istanbul 1. International and A
Slide 29: Traffic managed in 2018
Appendices TRAFFIC MANAGED IN 2018 2018 Traffic (mpax) @100% 2018 Traffic (mpax) @ADPmethod ADPINT 48 ADPINT 20 TAV 156 TAV 156 Paris aéroport 105 Paris aéroport 105 Groupe ADP 309 Groupe ADP 281 2018 Traffic (mpax) @100% 2018 Traffic (mpax) @ADPmethod SCL 23 SCL 10 AMM 8 AMM 8 MRU 4 MRU 0 MAD 1 MAD
Slide 30: Air traffic is expected to double over the next 20 years to reach 8 bn passengers in 2037
Appendices AIR TRAFFIC IS EXPECTED TO DOUBLE OVER THE NEXT 20 YEARS TO REACH 8 BN PASSENGERS IN 2037 Global passengers, Billions of passengers 4% p.a. 5% 8.2 p.a. 5.8 x2 4.1 2.5 1.5 1997 2007 2017 2027 2037 The number of passengers is expected to double in 20 years, to reach more than 8 billion in
Slide 31: 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