Regulatory News:
Aéroports de Paris resilient
despite decline in traffic
thanks to its solid business model
and cost-saving efforts
Solid annual results:
- Revenue up by
4.2%1 to €2,633.4 million
- EBITDA2 up by
4.1% to €883.0 million
- Savings of €45 million
achieved in 2009, slightly above forecasts
- Net income attributable to
the Group virtually stable at €269.5 million (-1.1 %)
- Dividend proposed to the next
General Meeting: €1.37 per share
Outlook for 2010: assuming a 0.5 % increase in traffic in
2010:
- Revenue slightly up compared
to 2009
- 2010 EBITDA in the range of
2009 EBITDA
Preparation of the next Economic Regulation Agreement (ERA)
for the five-year period 2011/2015
- Publication today of the
consultation document outlining the Group’s detailed
proposals
Mr. Pierre Graff, Chairman and Chief Executive Officer of
Aéroports de Paris (Paris:ADP) (Pink Sheets:AEOPF), said:
"Aéroports de Paris showed good resilience to the decline in
traffic in 2009. With a revenue and an EBITDA up by more than 4 %,
our annual results reflect the solidity of the company’s business
model. Thanks to the implementation of the savings plan announced
at the beginning of 2009 and the continuation of our commercial and
real-estate strategy, we are able to achieve our objectives.
The year 2010 is an important turning point for the Group. It
will be marked by the preparation of the next Economic Regulation
Agreement for the period 2011/2015 which is taking place as part of
a dialogue process with airlines and the regulator. It is a major
step for the future of the company and Aéroports de Paris proposes
to make improved service quality and customer satisfaction a
priority for this new period. The new regulatory framework should
also provide Aéroports de Paris with strong incentives to develop
traffic and improve its competitiveness and attractiveness in
relation to its competitors."
Key facts
Traffic trend
Passenger traffic fell by 4.7% during the year 2009, reaching
83.0 million passengers compared to 87.1 million in 2008. It fell
by 4.9 % at Paris-Charles de Gaulle (57.9 million passengers) and
by 4.2% at Paris-Orly (25.1 million passengers). Traffic fell by
6.4% during the 1st half of 2009 and by 3.0% during the 2nd half of
2009.
The traffic mix evolved favourably, as international traffic
outside Europe (35.8% of the total) resisted relatively better than
traffic as a whole with a decline limited to 3.5 %. Traffic with
Europe outside France (41.4% of the total) fell by 5.9%. Domestic
traffic (19.1% of the total) decreased by 4.9%.
The connection rate increased by 0.3 basis point to 24.7%.
Low-cost airlines, which represented 12.1% of traffic in 2009,
saw their number of passengers stabilise at 10.1 million.
The number of aircraft movements fell by 5.5 % to 738,600.
February 2009: launch of Duty Free Paris activities
The activities of Duty Free Paris, a joint venture held on an
equal basis by Aéroports de Paris and The Nuance Group are
dedicated to the distribution of fashion items and accessories
within Paris airports, began in February 2009. Duty Free Paris to
date operates 29 shops at Paris-Charles de Gaulle and Paris-Orly
airports.
April 2009: acquisition of the Masternaut Group
On 8 April 2009 Hub télécom, a fully-owned subsidiary of
Aéroports de Paris, acquired Masternaut International and all of
its subsidiaries (Masternaut Group), the European leader in
geolocation and on-board telematics services. On 1 December 2009,
Hub télécom also acquired, via the Masternaut Group, Masternaut UK
(Masternaut distributor in the United Kingdom and Ireland). The
Group has nearly 350 employees.
November 2009: Continental Square
On 30 November 2009, Aéroports de Paris and GE Capital Real
Estate France (through the intermediary of its subsidiary Foncière
Ariane SAS) signed definitive agreements for their partnership
relating to the management, through a joint venture (Roissy
Continental Square), of the Continental Square building complex
located on the Paris-Charles de Gaulle airport platform. Surface
and annual rent from this complex are respectively 50,000 m² and 11
million euros.
Increase in revenue, EBITDA
and current operating income in 2009: Aéroports de Paris is holding
up well to the decline in traffic
In millions of euros
2009 2008
2009 / 2008 Revenue
2,633.4 2,527.0
+4.2% EBITDA 883.0 848.0 +4.1% Current operating income
518.4 501.1 +3.5% Operating income from ordinary activities 512.6
503.2 +1.9% Net finance cost -113.9 -88.7 +28.4% Net income
attributable to equity holders of the parent company 269.5 272.6
(1.1%)
Consolidated revenue increased by 4.2% to €2,633.4 million in
2009 despite the downturn in traffic. This growth was driven
by:
- the development of
infrastructures and services: the opening of new facilities during
2008 (new boarding pier for terminal 2E and regional terminal 2G)
and 2009 (completion of CDG 1 refurbishment) and introduction of a
new fee to cover the cost of assisting passengers with disabilities
or reduced mobility from July 2008,
- the price effect linked to
increases in fees with effect from 1 April 2008 and from 1 April
2009,
- the growth in revenue derived
from real estate (+2.3%), especially in the first half of 2009,
which benefited from new contracts signed in 2008 and increased
rental income,
- the continued growth of
diversification activities (+17.9%), despite a downturn in the
second half of 2009,
- non-recurring items linked to
exceptional weather conditions, which had a positive impact on
de-icing activities.
Revenue generated by retail and services segment remains stable
despite the downturn in traffic, due to the addition of retail
space in new infrastructures and continued growth in sales per
passenger.
Ground handling and associated services have felt the impact of
the downturn in traffic and saw their revenue fall by 4.7%.
EBITDA continues to grow (+4.1% to €883.0 million) thanks
to efforts to control current expenditure and despite the increase
in the cost base linked to the commissioning of new facilities. In
addition, cost-saving plans announced on 12 March 2009 generated
overall savings of €45 million, exceeding the announced target of
€42 million for 2009. This sum should rise to €62 million in 2010,
particularly thanks to the consolidation for the future of savings
made in 2009. This plan is expected to continue and should generate
savings of around €100 million by 2013.
Raw materials and consumables used grew by 11.0% in 2009, due to
increased purchases of de-icing products and purchases of goods
from subsidiaries, related in particular to the acquisition of the
Masternaut Group.
External services are up by 3.5% to €672.5 million owing to the
increase in costs linked to the introduction of assistance services
for passengers with disabilities or reduced mobility (July 2008),
the increase in subsidiaries’ external charges (notably ADPI and
Alyzia) and the rise in cleaning and maintenance charges (opening
of new facilities). Conversely, intermediary fees are down as a
result of the cost-saving efforts initiated in 2009. In addition,
2008 was impacted by expenses related to an advertising campaign
that was not renewed in 2009.
Personnel expenses of the Group are up by 6.1% over the year.
Staff levels at the parent company are down by 3.9% compared to
2008, and personnel costs have risen by 1.8% to €517.6 million. The
number of employees of the Alyzia Group has increased by 2.7%. The
increase of the number of employees in other subsidiaries (+33.3 %)
is explained mainly by the increase in the ADPI staff associated
with significant business growth in 2009 and by the staff increase
at Hub télécom following acquisition of the Masternaut Group.
Taxes are up by 1.7% to €163.9 million, owing to the increase in
property taxes, despite a reduction in the professional tax.
Other operating expenses are down by 18.5% to €24.7 million,
since 2008 was affected by non-recurring items.
Other income and expenses includes depreciation of receivables
and allocations to provisions (net of reversals). These total €5.2
million.
Due to the introduction of significant services in 2008 and
2009, depreciation and amortization are up by 5.0% to €364.5
million. Operating income from ordinary activities is up by
3.5% to €518.4 million.
After taking into account non-recurring items linked primarily
to the reorganisation of ground handling activities, operating
income shows an increase of 1.9 % to €512.6 million.
Net finance income is a charge of €113.9 million, an
increase of 28.4% and can be explained by the rise in interest
charges linked to indebtedness arising mainly from bonds issued in
November 2008 and June 2009, and by the sharp drop in cash gains
due to the fall of short-term interest rates.
The share of profit of associated companies amounts to €11.7
million, given the acquisition of 8% of the capital of the Schiphol
Group in December 2008. Tax expenses are stable at €140.4 million,
and the net income attributable to the Group amounts to
€269.5 million, a drop of 1.1%.
Results by
segment
Growth of EBITDA in Aviation thanks to the implementation of
the savings plan
In millions of euros
2009 2008
2009 / 2008 Revenue 1,429.5 1,352.1 +5.7% Aeronautical fees
782.8 774.7 +1.0% Ancillary fees 167.5 140.7 +19.0% Airport
security tax 433.5 388.9 +11.5% Other revenues 45.7 47.8 (4.3%)
EBITDA 343.4 326.0 +5.3% Operating income from ordinary activities
112.8 105.9 +6.5%
Aeronautical fees3 were hit by the impact of the traffic
downturn. They are nonetheless supported by price rises (+3.8% on
average at 1 April 2008 and +5.5% on average at 1 April 2009) and
the increase in the number of aircraft parking stands located close
to terminals (aircraft parking fees up by 3.1%).
Ancillary fees are being driven by the introduction of new
services and the opening of new facilities. Thus assistance
services for disabled passengers or people with reduced mobility,
provided by Aéroports de Paris since July 2008, generated
additional revenue of €17.6 million. De-icing services are up by
€5.7 million, as the winter of 2009/2008 was colder than that of
2008/2007. Income from baggage sorting systems and check-in desks
in new installations is up by €6.6 million.
Airport security tax, which mainly finances security-related
activities, was €9.50 per departing passenger in 2009 (€8.75 in
2008). Revenue from the airport security tax amount to €433.5
million and include €39.1 million in accrued income.
Other income consists especially of reclassification of
invoicing to the Air Navigation Services Directorate, and lease
fees associated with the use of terminals. It amounts to €45.7
million, down by 4.3%.
EBITDA for the segment shows an increase of 5.3% to €343.4
million, producing a gross margin of 24.0%, down by 0.1 basis point
compared to 2008.
Depreciation and amortization are up by 4.8% to €230.6 million
as a result of the numerous facilities commissioned during 2008 and
2009. Operating income from ordinary activities is up by 6.5% to
€112.8 million.
Good resilience of Retail and Services despite downturn in
traffic thanks to the increase in sales per passenger in the
restricted area
In millions of euros
2009 2008
2009 / 2008 Revenue 869.7 867.9 +0.2% EBITDA 402.2 399.4
+0.7% Operating income from ordinary activities 320.4 320.8 (0.1%)
Breakdown of revenue:
In millions of euros
2009 2008
2009 / 2008 Revenue 869.7 867.9
+0.2% Commercial revenue 375.4 371.4 +1.1% Fees 250.7 251.8
(0.5%) Revenue of subsidiaries 192.9 184.5 +4.5% Eliminations -68.2
-65.0 +4.9% Parking and access roads 143.4 151.2 (5.2%) Industrial
services 64.4 77.5 (16.9%) Rental revenue 104.1 80.2 +29.7% Other
revenues 182.4 187.6 (2.8%)
Commercial activities consist of fees from shops, bars and
restaurants, advertising, the activities of banks, foreign exchange
and car rental agencies, as well as revenue from commercial
subsidiaries. Despite the drop in traffic, fees increased by 1.1%,
due in particular to the increase in fees from shops in the
restricted area (up by 3.6% to €168.9 million) driven by continued
growth in sales per passenger. The latter is up by 8.8% to €12.4
thanks to the development of additional space and a positive trend
in the traffic mix (growth in the contribution made by
international routes). Revenue from Société de Distribution
Aéroportuaire and Duty Free Paris subsidiaries is up by 4.5% to
€192.9 million4.
Aéroports de Paris plans to continue to develop its commercial
surfaces. Total commercial surfaces would amount 51,800 m² in 2012
(compared to 49,200 m² in 2009), including 3,700 m² temporally
closed for refurbishment. Around 4,400 m² would open over the
period in international restricted areas, thanks to the opening of
satellite 4 and terminal A and C junction at Paris-Charles de
Gaulle.
Car parks and access have felt the impact of the downturn in
traffic, showing a decline of 5.2%.
Revenue from industrial services (such as power and water
supply) is down by 16.9% owing to the transfer of heating and
air-conditioning services to rental revenue in the same
segment.
Rental revenue (rentals in terminals) has been boosted by new
rentals in the facilities opened during 2008 and 2009 and by the
transfer of revenues associated with air conditioning services.
Other revenues are composed mainly of internal services.
Thanks to cost-control efforts, EBITDA in the segment shows an
increase of 0.7% to €402.2 million. The gross margin therefore
stands at 46.2%, an increase of 0.2 basis point compared to
2008.
Depreciation and amortization are up by 3.6% to €81.6 million.
Operating income from ordinary activities is down slightly by 0.1%
to €320.4 million.
Growth of Real Estate despite a slowdown in the second
half-year
In millions of euros
2009 2008
2009 / 2008 Revenue 213.7 208.8 +2.3% EBITDA 116.6 104.3
+11.8% Current operating income from ordinary activities 82.7 72.7
+13.9%
Revenue from the real estate segment continues to expand (+2.3
%) to €213.7 million thanks to the growth in external revenues5.
The latter amount to €165.7 million (+ 4.7 %) supported by recent
new commercial agreements (in particular extension of the FedEx
hub) and by the positive impact of contracts being linked to the
cost of construction index (+ 6.2 % on average applied from 1
January 2009). However, the impact of the crisis was felt from the
second half of 2008. Internal revenue amounts to €48.0 million, a
decline of 5.0%.
EBITDA is up sharply (+ 11.8 %) to €116.6 million thanks to cost
control efforts. It has benefited from non-recurring items
totalling €7.7 million in 2009. The gross margin is 54.5%, a rise
of 4.6 basis points.
Depreciation and amortization are up by 7.0 % to €33.8 million.
Operating income from ordinary activities amounts to €82.7 million,
an increase of 13.9 %.
Recovery in Ground handling and related services
In millions of euros
2009 2008
2009 / 2008 Revenue 187.0 196.3 (4.7%) EBITDA (2.5) (10.8)
(76.6%) Operating income from ordinary activities (4.8) (13.4)
(63.9%)
Revenues from ground handling and other services fell by 4.7% in
2009 to €187.0 million. Due to the effects of the drop in traffic,
revenues from ground handling activities are down by 9.2% (to
€134.0 million), and gains from new contracts have not sufficed to
compensate for the discontinuation or reduction of the activity of
some airline clients. Security activities however show an increase
of 8.8% to €53.0 million, owing to the increased volume of services
provided at Paris airports.
The reorganisation of this activity, which was initiated in
2007, is now complete. It has allowed the regrouping of ground
handling and related services within Alyzia.
A savings plan designed to significantly reduce the current
deficit in 2009 and contend with the traffic downturn has been
implemented. As a result of reduced personnel costs and purchasing
and external costs control arising from the reorganisation and the
implementation of this savings plan, EBITDA is recovering and
stands at -€2.5 million, compared to -€10.8 million in 2008.
Operating income from ordinary activities stands at -€4.8
million compared to -€13.4 million in 2008, i.e. a significant
reduction.
Growth in revenue of Other Activities segment driven by a
dynamic first half-year and the change in the consolidated
scope
In millions of euros
2009 2008
2009 / 2008 Revenue 251.8 213.6 +17.9% EBITDA 22.7 29.1
-22.0% Operating income from ordinary activities 6.8 14.8 -54.0%
ADPI recorded revenue growth of 10.9% in 2009 to €117.9
million despite a stabilization in the second half of 2009. This
growth is the result of the ramping up of earlier contracts,
especially in Saudi Arabia (Jeddah), Oman, the Republic of
Mauritius and Colombia (Bogota). EBITDA stands at €6.4 million
(-4.4%). At the end of December, the backlog remains very high: it
stands at €243.3 million.
Hub télécom acquired the Masternaut Group and, via this
Group, Masternaut UK. The revenue of the Hub télécom group amounts
to €116.8 million6, an increase of 29.2 %. With the scope
unchanged, revenue is down 5.0 % due to the impact of the economic
crisis on sales of telecommunications solutions. EBITDA amounts to
€15.7 million7, down by 27.7 %. Operating income from ordinary
activities amounts to €0.8 million, down by 90.6% due in particular
to the weight of depreciation and amortization.
Aéroports de Paris Management shows a decline in revenue
of 14.5 % to €11.2 million. The positive effect of the
implementation of contracts signed in 2008 and 2009 (Republic of
Mauritius and Amman) was not sufficient to compensate for the
impact of declining traffic on the activity of other airports.
EBITDA and operating income from ordinary activities remain stable
at €1.3 million and €1.2 million respectively.
Debt
The Group’s net debt amounts to €2,337 million compared to
€2,254 million at 31 December 2008, reflecting the increase in
gross debt (loan drawn from the EIB and a bond issue) and also in
cash position.
On 31 December 2009 gearing stood at 72%, compared to 73% at
year end 2008.
Outlook
Assuming an increase in passenger traffic of 0.5% in 2010,
Aéroports de Paris anticipates for the 2010 financial year a slight
increase in revenue compared to 2009, with 2010 EBITDA in the same
range of 2009 EBITDA.
Preparation of the Economic
Regulation Agreement 2011-2015
In October 2009, Aéroports de Paris started the preparation of
the next Economic Regulation Agreement (ERA) to cover the 2011-2015
period, i.e. from 1 April 2011 to 31 March 2016.
An initial consultation phase with airlines ran to January 2010.
With these consultations now at an end, Aéroports de Paris
publishes today the consultation document stipulated by regulation.
This sets out the assumptions and detailed proposals of Aéroports
de Paris, on the basis of which stakeholders can make their
observations to government departments which will pass them on to
Aéroports de Paris. These ideas reflect the Group’s determination
to make improved service quality and customer satisfaction a
priority over the next five-year period. In conjunction with a
commitment to a policy of moderation in tariffs (increase in
charges by an average of 1.38% excluding inflation per year), these
efforts aim to allow Ile-de-France airports to improve their
attractiveness and competitiveness.
They would rely on an investment programme which aims to improve
the quality of service provided to the company's clients and will
specifically involve commitment to a plan of complete renovation of
the oldest air terminals. This schedule of investments would
represent a sum of around €2.4 billion (2010 euros) for Aéroports
de Paris (excluding financial investments and investments in
subsidiaries). Thanks to sufficient capacities for at least a
decade and given the observed trend towards increased passenger
traffic (average of +3.2 % per year between 2010 and 2015), the
company would, from the middle of the 2011-2015 ERA, commit to a
low investment cycle making it possible, in conjunction with the
effect of gains in operational performance, to improve the return
on capital employed within the new regulated scope. This
improvement would allow the return on capital employed of the
regulated scope to be in line with the company's weighted average
cost of capital on average for the following ERA (2016-2020).
The preparation of this agreement takes into account an
adjustment to the company’s regulated scope, applicable from 1
January 2011, pursuant to an Decree dated 17 December 2009: as of
this date, diversification real estate activities will no longer be
included in the regulated scope (activities which do not relate to
air cargo, ground-handling, aircraft maintenance or general and
commercial aviation), as well as commercial activities (relating to
shops, restaurants, hotels, car rental, banking services, foreign
exchange and advertising).
In accordance with the regulatory procedure, the proposals are
expected to be referred to the Commission Consultative
Aéroportuaire (Airport Consultative Committee) for the opinion of
the Minister for civil aviation in the spring of 2010.
Within this framework, the Economic Regulation Agreement for
2011-2015 could be concluded during the 3rd quarter of 2010 so that
charging tariffs can be applied as of 1 April 2011.
Dividend submitted to the vote
of the General Meeting
- At its meeting of 18 February
2010 the Board of Directors of Aéroports de Paris decided to submit
to the vote of the annual General Meeting of shareholders, to be
held on 27 May 2010, a dividend payment of 1.37 euros per share for
the 2009 financial year.
- Payment date, subject to the
vote by the Annual General Meeting: 10 June 2010.
- This dividend corresponds to a
payout ratio of 50 % of consolidated net income attributable to
equity holders of the parent company for the 2009 financial year,
in line with the objective of payout of Aéroports de Paris.
Calendar
Friday 19 February 2010:
Wednesday 12 May 2010: Q1 2010 Revenue
Thursday 27 May 2010: General Meeting of shareholders
Website: www.aeroportsdeparis.fr
The financial information provided in this press release is
based on the consolidated accounts of Aéroports de Paris. The
auditing procedures have been carried out and the auditors' report
relating to the certification of the consolidated accounts of
Aéroports de Paris as of 31 December 2009 is in the process of
being issued.
Forward-looking statements
This press release contains forward-looking statements. These
forward-looking statements are based on data, assumptions and
estimates considered to be reasonable by Aéroports de Paris. They
notably include information about Aéroports de Paris’ financial
position, results of operations and business activities. These
data, assumptions and estimates are subject to risks (including
those described in the registration document filed with the
Autorité des Marchés Financiers on 30 April 2009 under no.
R.09-038) and uncertainties, many of which are beyond the control
of Aéroports de Paris and cannot be forecast reliably. These may
lead to actual results differing substantially from those forecast
or suggested in these statements.
Aéroports de Paris
Registered office: 291, boulevard
Raspail, 75014 Paris
Public limited company with share
capital of €296,881,806
552 016 628 RCS Paris
Aéroports de Paris builds, develops and manages airports
including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget.
With 83.0 million passengers handled in 2009, Aéroports de Paris is
Europe's second-largest airport group in terms of passenger traffic
and the European leader for freight and mail.
With an exceptional geographic location and a major catchment
area, the Group is pursuing its strategy of adapting and
modernizing its terminal facilities and upgrading quality of
services, and also intends to develop its retail and real estate
business. In 2009, Aéroports de Paris had revenue of €2,633,4
million, and a net income of €270 million.
1 Unless stated otherwise, percentages compare 2009 data with
equivalent 2008 data
2 Current operating income including depreciation and
amortization net of reversals
3 Passenger fees, landing fees (including lighting fees since 1
April 2009), and aircraft parking fees (including fuel fees since 1
April 2009)
4 Aéroports de Paris’ ownership interest stands at 50%, of which
€185.0 million for Société de Distribution Aéroportuaire
5 Generated with parties outside the Group
6 Of which 26.6 million for the Masternaut Group
7 Of which 1.0 million for the Masternaut Group
Automatic Data Processing (TG:ADP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Automatic Data Processing (TG:ADP)
Historical Stock Chart
From Jul 2023 to Jul 2024
