Aeroports de Paris · EURONEXT:ADP
Aeroports de Paris — H1 2016 Earnings Presentation
40 slides from Aeroports de Paris's earnings presentation, Jul 29, 2016
Slide 1: 2016 Half Year Results
2016 HALF YEAR RESULTS 29 July 2016
Slide 2: Table of Contents
TABLE OF CONTENTS 2016 HALF YEAR HIGHLIGHTS Augustin de Romanet, Chairman and CEO FINANCIAL RESULTS Philippe Pascal, Executive Director Finance, Strategy and Administration OUTLOOK Augustin de Romanet, Chairman and CEO Q&A Groupe ADP - 2016 First Half Year Results|1
Slide 3: 2016 Half Year Highlights
01 2016 HALF YEAR HIGHLIGHTS Augustin de Romanet Chairman and CEO
Slide 4: 2016 Half Year Highlights
2016 HALF YEAR HIGHLIGHTS Paris Aéroport traffic: +1.5% ; Groupe ADP traffic: +2.3% Traffic in Paris-Orly: +4.9%, stable in Paris-CDG Traffic for 1st half of 2016 in line with assumptions Dynamism of low costs airlines, offsetting the virtual stability of international traffic Negative impac
Slide 5: EBITDA in line with forecasts due to non-renewable reversals of provisions
EBITDA IN LINE WITH FORECASTS(1) DUE TO NON-RENEWABLE REVERSALS OF PROVISIONS OIFOA(2) AND NRAG(3) IMPACTED BY INTERNATIONAL AND AIRPORTS DEVELOPMENT SEGMENT / REVENUE / EBITDA -0.5% +2.7% €m 1,422 1,416 523 509 EBITDA/Revenue 35.8% 36.9% % H1 2015 H1 2016 H1 2015 H1 2016 / OIFOA(2) / NRAG(3) (4) -1
Slide 6: 2016, starting year of our strategic plan, Connect 2020
2016, STARTING YEAR OF OUR STRATEGIC PLAN, CONNECT 2020 Tariffs stability in 2016 as planned by ERA : CPI+0% (i.e. 0%), before a moderate tariff increase between 2017 and 2020 at CPI +1.25% Stable tariffs in 2016 Establishment of the new pricing structure, incentivising the development of intern
Slide 7: Realisation in 2016 of large infrastructure projects
REALISATION IN 2016 OF LARGE INFRASTRUCTURE PROJECTS / « ONE ROOF » JUNCTION BETWEEN SOUTH AND WEST TERMINALS IN PARIS-ORLY Total floorspace: 80,000 sq.m INCREASED PASSENGER CAPACITY: +3.5 million passengers per year A LARGER CHOICE FOR SHOPS: +5,000 sq.m of retail floorspace, of which 1,500 s
Slide 8: Propose the ultimate Parisian dining experience
PROPOSE « THE ULTIMATE PARISIAN DINING EXPERIENCE » REVIEW OF OUR BARS AND RESTAURANTS OFFER IN OUR PARISIAN TERMINALS Launch of the JV(1) Epigo Upmarket strategy in progress for table in bars and restaurants core business service Guy Martin’s (Michelin-starred chef) Applying JV system success t
Slide 9: Financial Results for 1st Half of 2016
02 FINANCIAL RESULTS FOR 1ST HALF OF 2016 Philippe PASCAL Executive Director Finance, Strategy and Administration
Slide 10: Achievement of 2011-2015 target for regulated ROCE at 3.8%
ACHIEVEMENT OF 2011-2015 TARGET FOR REGULATED ROCE AT 3.8% THANKS TO OUR FINANCIAL DISCIPLINE / 2011-2015 REGULATED ROCE 4,0% Combined effect of traffic and 3,8% Improvement of tariffs 3,8% 2015 TARGET: 3.8 %(1) regulated Financial discipline on regulated operating profit 3,6% operating expenses
Slide 11: Groupe ADP traffic
GROUPE ADP TRAFFIC RESILIENCE OF PARISIAN TRAFFIC IN A CHALLENGING ENVIRONMENT IN EUROPE / MONTHLY CHANGE IN ADP TRAFFIC / ADP VS PEERS H1 2016 / mpax H1 2015 Q1 Q2 Q3 Q4 Paris-CDG+ORY 46 +1.5% 2016: +1.9 % 2016: + 1.2 % 2015: + 2.0 % 2015: + 1.0 % 2015: + 8.2 % 2015: + 0.0 % +0.6% Monthly Londres-H
Slide 12: Growth in Paris Aéroport traffic
GROWTH IN PARIS AÉROPORT (PARIS AIRPORTS) TRAFFIC DRIVEN BY LOW COST AND NORTH-AMERICAN AIRLINES, AND BY MIDDLE-EAST % Paris Aéroport (Paris airports) total traffic (departures & arrivals) H1 2016 / H1 2015 change in Paris France Europe North America 17.4% 43.8% 9.3% +0.9% +3.5% +0.9% French Oversea
Slide 13: Revenue impacted by slowdown in retail activities
REVENUE IMPACTED BY THE SLOWDOWN IN RETAIL ACTIVITIES, PARTIALLY OFFSET BY THE GOOD PERFORMANCE OF AVIATION FEES Parent-company: Aéroports de Paris SA(1) Subsidiaries and associates (2) Group International and Aviation Retail & services Real Estate Other activities airport development €1,416m(3) Rev
Slide 14: EBITDA in line thanks to control over operating expenses
EBITDA IN LINE THANKS TO CONTROL OVER OPERATING EXPENSES AND NON-RENEWABLE REVERSALS OF PROVISIONS / EBITDA FOR 1ST HALF OF 2016: +2.7% Control over group operating expenses: +2.3% H1 2016 / Control over ADP SA operating expenses : +1.2% In €m H1 2016 H1 2015 Decrease in staff cost and purchas
Slide 15: OIFOA impacted by contribution of TAV Airports and TAV Construction
OIFOA(1) IMPACTED BY THE CONTRIBUTION OF TAV AIRPORTS AND TAV CONSTRUCTION NEGATIVE IMPACT ON GROUPE ADP’S 2016 NRAG FORECAST / CONTRIBUTION OF INTERNATIONAL ASSOCIATES TAV Airports H1 2016 H1 2015 H1 2016 H1 2015 Share of NRAG(1) @ 38% €10m €33m TAV Construction @ 49 % -€12m €3m Share of PPA(2) @ 3
Slide 16: Net result attributable to the Group impacted by slowdown in associates
NET RESULT ATTRIBUTABLE TO THE GROUP IMPACTED BY THE SLOWDOWN IN OPERATING ACTIVITIES OF ASSOCIATES, PARTIALLY OFFSET BY THE DECREASE IN TAX Base effect linked to the disposal of Incl. €(45)m from Alyzia in 2015 (€9m) TAV Airports, TAV Construction Schiphol Exchange rate Decrease in tax base l
Slide 17: Strong financial situation as of 30 June 2016
STRONG FINANCIAL SITUATION AS OF 30 JUNE 2016 / DEBT REPAYMENT SCHEDULE (€M) 667 30/06/2016 31/12/2015 600 Net debt 2.8 2.6(3) 550 (€bn) 500 500 500 Share of fixed-rate 86 % 85 % debt(2) 400 400 Average maturity 6.4 years 6.9 years Average cost 2.4% 2.4% 135 100 Gearing 71 % 63%(3) Rating A+ / stabl
Slide 18: Increased control over regulated opex
INCREASED CONTROL OVER REGULATED OPEX REMINDER OF 2016-2020 ERA COMMITMENT OF REDUCTION OF REGULATED OPEX/PAX BY 8% BETWEEN 2015 AND 2020 / COMMITMENT OF REDUCTION OF REGULATED OPEX/PAX BY 8% BETWEEN 2015 AND 2020 Change 2015-2020 REGULATED OPEX(1) /PAX (€ constant) Underlying trend driven by: 12,5
Slide 19: Launch of a cost-cutting plan for the parent company
LAUNCH OF A COST-CUTTING PLAN FOR THE PARENT COMPANY CONSISTENT WITH THE COMMITMENT OF REDUCTION OF REGULATED OPEX/PAX BY 8% BETWEEN 2015 AND 2020 / The growth in parent-company OPEX (both regulated and non regulated) should be lower or equal to 2.2% CAGR2015-2020, to be consistent with 2016-2020 ER
Slide 20: A cost-cutting plan with two complementary parts
A COST-CUTTING PLAN WITH TWO COMPLEMENTARY PARTS / Efforts on staff costs / Efforts on purchases First part of the cost-cutting plan Second part of the cost-cutting plan Salaries and employee costs Renegociation of purchases contracts: Limitation of general payroll increase Between €400m to
Slide 21: 2016 Outlook
03 2016 OUTLOOK Augustin de Romanet Chairman and CEO
Slide 22: Launch of a re-dynamisation plan for retail
LAUNCH OF A RE-DYNAMISATION PLAN FOR RETAIL IN A CHALLENGING ENVIRONMENT FOR OUR SHOPS / Shops that better resist than in downtown / …requiring the launch of a Paris, in a challenging European re-dynamisation plan in favour of retail environment Challenging environment: Targeted action Decreas
Slide 23: Launch of the loyalty programme My Paris Aéroport
LAUNCH OF THE LOYALTY PROGRAMME MY PARIS AÉROPORT A MOBILE APPLICATION TO BETTER SERVE OUR PASSENGERS / Better know our passenger / … and offer them exclusive benefits customers Creation of the mobile application Car park online booking system My Paris Aéroport including a digital Sales on key
Slide 24: Confirmation of 2016 EBITDA forecast and revision of net result forecast
IN A CHALLENGING ENVIRONMENT, CONFIRMATION OF THE 2016 EBITDA FORECAST AND REVISION OF 2016 NET RESULT ATTRIBUTABLE TO THE GROUP FORECAST Confirmation of the growth assumption of +2.3% in 2016 compared Traffic to 2015 Confirmation of 2016 Confirmation of slight growth in EBITDA in 2016 compared
Slide 25: Appendices
04 APPENDICES
Slide 26: Group detailed income statement
GROUP DETAILED INCOME STATEMENT In €m (unless otherwise stated) H1 2016 H1 2015 2016/2015 Paris Aéroport passengers (in million) 46.2 45.5 +1.5% Revenue 1,416 1,422 -0.5% Operating expenses 935 915 +2.3% Other operating income and expenses 42 0 na EBITDA 523 509 +2.7% Amortisation and depreciation (
Slide 27: Impact of review of allocation keys for regulated assets base
IMPACT OF THE REVIEW OF THE ALLOCATION KEYS FOR THE REGULATED ASSETS BASE ON THE SEGMENTS’ OPERATING INCOME FROM THE ORDINARY ACTIVITIES As a reminder, the change of the allocation keys for the regulated assets base, as proposed by ADP in January 2015 and confirmed by the airport consultative commit
Slide 28: ERA II regulated scope as at 31 December 2015
ERA II REGULATED SCOPE (ADJUSTED TILL SYSTEM) AS AT 31 DECEMBER 2015 In €m 2015 2014 Regulated operating profit(1) 309 262 Regulated assets base 5,090 5,130 Regulated ROCE from the regulated 3.8 % 3.2 % scope (1) GOS - other current income and expenses - amortisation and depreciation of fixed assets
Slide 29: 2020 Guidances
2020 GUIDANCES On the basis of a traffic growth assumption of 2.5% in average per year between 2016 and 2020 : ROCE of the regulated scope 5.4 % in 2020e 2020 consolidated EBITDA +30 to +40% growth in consolidated EBITDA between 2014 and 2020e Quality of service Overall ACI/ASQ rating of 4 in 2020e
Slide 30: Aviation
AVIATION H1 2016 INCOME STATEMENT / REVENUE: - 0.8% / EBITDA: +€17M / OIFOA(1): +€23M In €m In €m 844 837 22.1% Other income 21 20 19.9% Revenue from airport safety and security services 247 232 Ancillary fees 103 107 Parking 66 71 EBITDA 185 Landing 101 109 168 OIFOA Airport fees 4.1% Margin Passen
Slide 31: Aviation: Groupe ADP traffic by airport
AVIATION GROUPE ADP TRAFFIC BY AIRPORT FOR 1ST HALF OF 2016 Stake-weighted Groupe ADP H1 2016/ H1 2015 traffic (million stake(1) Change passengers) Paris Aéroport(2) @ 100% 46,2 +1,5% @ 25.5%(3) Mexico regional airports 0.4 +9.1% @ 16.7% Zagreb @ 21% 0.3 +5.7% Groupe ADP Jeddah-Hajj @ 5% 0.3 +18.7%
Slide 32: Retail and Services
RETAIL AND SERVICES H1 2016 INCOME STATEMENT / REVENUE: -0.5 % / EBITDA: -3.0% / OIFOA: -10.1% In €m 448 446 In €m Others 18 18 57.2% 55.8% Rentals 69 72 48.3% Industrial service 68 43.7% 68 revenue 88 87 Car parks 257 249 217 195 EBITDA Retail activities 206 201 Details page 32 OIFOA Margin H1 2015
Slide 33: Retail and Services: retail rents and sales/pax
RETAIL AND SERVICES ZOOM ON RETAIL RENTS AND SALES/PAX(1) FOR 1ST HALF OF 2016 / RETAIL ACTIVITIES: -2.3% / H1 2016 SALES/PAX: -8.3% TO €18.1 In €m Sales/PAX (€) 206 201 Of which: exchange: -12.6% 37.1 advertising: +8.9 % 37 37 -0.3% 34.0 car rentals: +8.5% 15 +23.7% -8.5 % 7 19 8 +18.6% 19.8 18.1 1
Slide 34: Retail and Services: commercial joint ventures
RETAIL AND SERVICES FOCUS ON COMMERCIAL JOINT VENTURES FOR 1ST HALF 2016 EBITDA(1): -49.4% REVENUE(1): +1.5% NET RESULT(1): -73.1% In €m 391 0 397 20 SDA (retailing JV(2) with Lagardère Travel Retail) 24 26 33 Revenue (-4.8%) impacted by slowdown in 33 international traffic 19 Relay@ADP 3 2 13
Slide 35: Real Estate
REAL ESTATE H1 2016 INCOME STATEMENT / REVENUE: +1.4% / EBITDA: -2.5 % / OIFOA: -8.7% In €m 137 139 In €m 55.9% 53.8% Internal 25 28 revenue Others 20 19 40.0% 36.0% Buildings 41 41 77 External 75 revenue 55 50 EBITDA OIFOA Lands 51 51 Margin H1 2015 H1 2016 H1 2015 H1 2016 Change of the allocation
Slide 36: Real Estate: projects pipeline
REAL ESTATE PROJECTS PIPELINE AS AT THE END OF JUNE 2016 Airport Segment ADP role Operator Project Opening Floorspace (sq.m) Projects commissioned over 1st half of 2016 68,600 Offices and CDG Diversification Developer Sogafro/SDV 2016 37,500 warehouses Engine maintenance CDG Aeronautical Investor TC
Slide 37: International and Airport Developments
INTERNATIONAL AND AIRPORT DEVELOPMENTS H1 2016 INCOME STATEMENT / REVENUE: +8.3% / EBITDA: +€6M / OIFOA: -€39M In €m 45 In €m 42 10 ADP 7 Management 25 EBITDA 2 OIFOA ADP 35 35 Ingénierie -4 -14 H1 2015 H1 2016 H1 2015 H1 2016 Revenue of ADP Ingénierie (+0.6%): virtually stable EBITDA up by €6m to €
Slide 38: International footprint: passenger traffic
INTERNATIONAL AND AIRPORT DEVELOPMENTS INTERNATIONAL FOOTPRINT – PASSENGERS TRAFFIC FOR 1ST HALF OF 2016 13 regional airports in North and France Schiphol Group (8%) Liege (25.6%) Zagreb airport (ADP 21% Macedonia (100%) Georgia (76%) Central Mexico (25.5%) Paris-CDG: 31.3mpax 29.7 mpax 0.3m t
Slide 39: Other Activities
OTHER ACTIVITIES H1 2016 INCOME STATEMENT / REVENUE: +4.9% / EBITDA: -0.8% / OIFOA: -3.8% In €m In €m 106 101 Hub Safe 37 37 11.7% 11.1% Hub One EBITDA 64 69 4.8% 4.4% 12 12 OIFOA 5 5 Margin H1 2015 H1 2016 H1 2015 H1 2016 Hub One (+6.7%): +€5m Hub One Good performance in equipment of Mobility O
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