Aeroports de Paris · EURONEXT:ADP
Aeroports de Paris — Investor Presentation (March 2006)
38 slides from Aeroports de Paris's investor presentation, Mar 15, 2006
Slide 1: Presentation of the Economic Regulation Agreement
Presentation of the Economic Regulation Agreement Aéroports de Paris March 15, 2006
Slide 2: Disclaimer
Disclaimer The following is a summary of the main provisions of the Economic Regulation Agreement entered into on February 6, 2006 between the French State and Aéroports de Paris. The participants are invited to read the whole agreement, a copy of which will be given to them. The whole agreement is
Slide 3: Architecture of the regulation and the Economic Regulation Agreement
1. Architecture of the regulation and the Economic Regulation Agreement (ERA) P. Graff - CEO 2. ERA: Investments and Quality of Services 3. ERA: Fee increases
Slide 4: An Economic Regulation in line with the best European standards
An Economic Regulation in line with the best European standards The economic regulation framework has been deeply clarified and modernized: 1 The multi-annual agreement offers the visibility and stability needed for airport activity The fee increases are linked to the completion of an investment 2 p
Slide 5: Regulation Mechanism
Regulation Mechanism “The level of fees takes into account the return on capital Law of April 20, 2005 employed […] The global amount of such fees cannot exceed the cost of services provided on the airport” Maximum 5-year term multi-annual agreements List of principal fees subject to price cap “The
Slide 6: A first agreement with a price cap system
A first agreement with a price cap system Airport Services Commercial Activities Fees governed by the Other fees for services provided Commercial or ERA contractual rates Principal Fees (landing, Property usage fees in the Retail aircraft parking, passengers terminals Car parks and hydrant) Airport
Slide 7: The price cap system enables Aéroports de Paris to keep the profitability gains
The price cap system enables Aéroports de Paris to keep the profitability gains Aéroports de Paris will retain the profitability gains during the ERA period Symmetrically, a decrease in profitability is entirely borne by the company Aéroports de Paris is encouraged to control its charges and to deve
Slide 8: Indications for the following ERAs
Indications for the following ERAs Evolutions of the regulation perimeter provided for by the order on regulation of September 16, 2005: Diversification real estate excluded from the regulation perimeter “ …an agreement […] may provide that profits from the commercial activities could be partially t
Slide 9: How the first ERA works
How the first ERA works Investments Quality of Services - Estimates of € 2.5 billion of Commitment of Aéroports de Paris : investments** - reach certain levels of quality of services in - Commitments to open certain areas primarily within its control (10 indicators) installations at fixed dates Adju
Slide 10: ERA: Investments and Quality of Services
1. Architecture of the regulation and the Economic Regulation Agreement (ERA) 2. ERA: Investments and Quality of Services P. Graff - CEO 3. ERA: Fee Increases
Slide 11: An Investment Program to take advantage of traffic growth
An Investment Program to take advantage of traffic growth Investments in the Regulated 2006 2007 2008 2009 2010 2006 - 2010 Perimeter (€M - € 2006) Capacity 377,2 311,1 148,5 149,4 181,1 1167,3 Restructuring 53,9 54,8 41,5 36,0 21,3 207,5 Current Investments 153,3 143,2 145,3 131,6 113,8 687,2 Real
Slide 12: Investment Program
Investment Program Installations delivery schedule Increase in Capacity Total Reopening of Regional Terminal CDG VAL Satellite 3 CDG 2E TBE S4: beginning of works 2006 2007 2008 2009/2010 Hall 2 Orly Ouest CDG1 Orly Sud Restructuring 12 - DFI
Slide 13: Objectives for Quality of Services
Objectives for Quality of Services Indicators The objectives for quality of services are based upon 10 indicators: chosen because of to the high degree of responsibility assumed by the airport operator and that broadly cover the scope of activities of the airport operator Availability of Passengers’
Slide 14: ERA: Fee Increases
1. Architecture of the regulation and the Economic Regulation Agreement (ERA) 1. ERA: Investments and Quality of Services 2. ERA: Fee Increases L. Galzy - CFO
Slide 15: Annual Schedule of Fee Rate Fixing
Annual Schedule of Fee Rate Fixing January 30 February 28 April 1 Discussion with users Year n-1 Year n Deadline for notification Deadline for objection Effective date of to ministers by ministers rates • Users are informed and consulted on the investment program, the evolution of the fee breakdown
Slide 16: Two categories of fees and two distinct price caps
Two categories of fees and two distinct price caps The “Principal Fees” Category 1 “Tariff basket” Landing Fee Aircraft Parking Fee Annual price cap: Passenger Fee PP(n) = CPI*** + 3.25% Fuel Fee The “Ancillary Fees” Runway Lighting Fee Category 2 “ Tariff basket” Check-in and boarding counter Fee A
Slide 17: Rate Increase Formula
Rate Increase Formula Determination of the tariff grid for the year 2010 Reference Tariff Grid for Year 2010 Reference Tariff Grid for Year 2009 X X Estimated increase permitted by the ERA Traffic for Year 2008 Traffic for Year 2008 GTRP(2010, Traffic (2008)) = GTRP(2009, Traffic(2008)) X (1+PP(2010
Slide 18: Parameters Retained for Adjustment Determination
Parameters Retained for Adjustment Determination Information Availability Rate Determination for the Year n Inflation**** I (n) Bonus / Penalty** QDS(n) Traffic* Investments *** TRAF(n) INV(n) Year n-2 Year n-1 Year n 18 - DFI*From December 1 n-2 to November 30 n-1 ** From July 1 n-2 to June 30 n-1
Slide 19: Investments
Investments 3 types of adjustments on different perimeters (M€ - € 2006) 2006 2007 2008 2009 2010 TOTAL 675,0 596,8 414,6 395,6 395,8 TOTAL excluding real estate 663,8 583,3 401,2 381,8 382,1 diversification Investments ("INV" factor) 232,7 217,4 211,2 196 180 Current investments : if Investments ex
Slide 20: Investments
Investments Mechanical adjustments on current investments Total Investments in the regulated perimeter (M€ - € 2006) 2006 2007 2008 2006-2008 Total 675,0 596,8 414,6 1686,4 Investment taken into account for the INV factor (DP) 232,7 217,4 211,2 661,3 Cumulated investments (2006-2008) planned for by
Slide 21: Quality of Services
Quality of Services System of bonus / penalty The ERA sets the maximum and minimum level for each indicator each year and above / below which the bonus / penalty is capped Availability of aircraft parking stands Availability of air bridges Availability of electro-mechanical equipments Availability o
Slide 22: Quality of Services
Quality of Services Corrective Factor: Bonus / penalty Bonus/Penalty associated to the indicator 0.05% For the 9 indicators of availability / satisfaction (associated bonus / penalty of 0.05% by indicator) Bonus Clearing account system Possible 0 calculations of the QDS1-9(2009) QDS1-9(2010) indicat
Slide 23: Quality of Services
Quality of Services Indicator no. 10 – New aircraft parking stands in contact with terminals S3 CDG2E CDG1 Opening in time Bonus = 0 % Opening 2 quarters in advance Maximum bonus = 0.5% Opening with a delay of 2 quarters Maximum penalty = - 0.5% 23 - DFI
Slide 24: Traffic
Traffic Adjustment factor No correction if the traffic evolution remains inside a given range • Evolution of “compounded” passenger / movement traffic index (weighted 60 / 40) • “franchise“ range corresponding to an annual growth in traffic of +3.50% / +4.00% and in movements of +2.16% / 2.46% Repay
Slide 25: Other non-mechanical adjustments
Other non-mechanical adjustments Without revision of the ERA The fee change cap may be modified, without specific amendment, in the event that: 1. Aéroports de Paris must be remunerated by airport fees for services previously covered by other revenues (ex: Tax) or not existing when the ERA is signed
Slide 26: Other non-mechanical adjustments
Other non-mechanical adjustments Events of early possible revision of the ERA The State and Aéroports de Paris shall meet to study a possible revision in the event that: Scenario: 6.25% 1. traffic has departed for more than 2 consecutive years from a traffic range ? (passengers (6.25% - 1.25%) and m
Slide 27: Regulation of ADP vs. BAA and Fraport – Framework
Regulation of ADP vs. BAA and Fraport – Framework Current Single till in first period Single till Dual till Perimeter Possible Exit of part of real estate in Single till maintained in None Evolution second contract next quinquenum? Possibility to limit subsides from non-aviation in second contract R
Slide 28: Regulation of ADP vs. BAA and Fraport – Economic Data
Regulation of ADP vs. BAA and Fraport – Economic Data Basis ROCE to reflect WACC Return on RAB Aviation Costs + “reasonable return“ WACC NA 7.75% 10% (pre-tax and inflation) (pre-tax) Tariff increase +3.25% + inflation HEA: +6.5% + inflation +2% (standard) GAT: +0% + inflation STAN: +0% + inflation
Slide 29: A favorable ERA matched with Aéroports de Paris ambitions
A favorable ERA matched with Aéroports de Paris ambitions The ERA of the first five-year period: 1 Structured under the regime of single till … that encourages Aéroports de Paris to develop its commercial activities (in particular diversification real estate) and to control its expenses Authorizing
Slide 30: Annexes
Annexes __\e AEROPORTS DE PARIS
Slide 31: Structure of the Economic Regulation Agreement
Structure of the Economic Regulation Agreement Title I: Purpose and Scope of Application of the Agreement Title II: Investments and Quality of Services Title III: Pricing Title IV: Discussion with Users Title V: Terms and Conditions of Performance of the Agreement Title VI: Miscellaneous Provisions
Slide 32: Impact of Corrective Factors
Impact of Corrective Factors Prices 2006 Prices 2007 Prices 2008 Prices 2009 Prices 2010 Traffic Factor: TRAF Factor of Quality of Services: QDS Investment Factor: INV 32 - DFI
Slide 33: Traffic Corrective Factor
Traffic Corrective Factor Determination of a compounded traffic unit (passengers / movements) Passenger traffic upper scenario: +4.00% Passenger traffic central scenario: +3.75% Passenger traffic ETM lower scenario: +3.50% ET 60% 2006 2007 2008 2009 ETm Movements 40% upper scenario : + 2.46% 2006 20
Slide 34: Traffic Corrective Factor
Traffic Corrective Factor TRAF(2007) Impact on the rate cap 0.25% 0.20% 0.15% 0.10% ETM(2007) 0.05% ET(2007) 0.00% 102.40% 102.60% 102.80% 103.00% 103.20% 103.40% 103.60% 103.80% -0.05% -0.10% ETm(2007) -0.15% -0.20% -0.25% 3.06% 3.30% 3.50% 3.75% 4.00% 4.25% 4.50% Corresponding scale in passenger t
Slide 35: Revision or early termination of the ERA: exceptional circumstances
Revision or early termination of the ERA Exceptional and Unforeseeable Circumstances – Revision Process REASONS If one of the parties considers that exceptional or unforeseeable circumstances result in a disruption of the economic conditions of the agreement Search for agreement on the principle of
Slide 36: Revision or Early Termination of the ERA: specific circumstances
Revision or Early Termination of the ERA Specific Circumstances for a Revision of the agreement – Procedure of Revision TRIGGERS • Traffic outside the tunnel 1.25/6.25% • Cumulated investments lower than 75% of the program provided for in the ERA • New situation resulting in a substantial modificati
Slide 37: Contacts
Contacts __\e AEROPORTS DE PARIS
Slide 38: Contacts
Contacts Direction Financière Benoît TROCHU +33 1 43 35 73 43 +33 6 27 26 49 11 [email protected] 38 - DFI
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