Trasporti
Aéroports de Paris SA: With 281.4 million passengers (+7.6%), Groupe ADP becomes, in 2018, the world number 1 in airport management
FINANCIAL RELEASE
14 February 2019
Aéroports de Paris SA
Except for sales/pax, 2018's data take into account the full consolidation of TAV Airports' results, since the 2 half of 2017, and the full consolidation of AIG's results since April 2018
(1) 2018's data take into account the full consolidation of TAV Airports' results, since the 2 half of 2017, and the full consolidation of AIG's results since April 2018.
The effect of the application of the norm IFRS 9 as of 1 January 2018, relative to financial instruments, is of +€13 million on the financial result as of 31 December 2018. The effect of the application of the norm IFRS 15 at the 1 January 2018, relating to revenue recognition principles, has no significant impact on the income statement (impact below €1 million in 2018).
(1) 2018's data take into account the full consolidation of TAV Airports' results, since the 2 half of 2017, and the full consolidation of AIG's results since April 2018.
Over 2018, Groupe ADP , stood at €4,478 million, up by €861 million, mainly thanks to:
Other activities segment and intersegment eliminations are impacted by the sale of a 80%-stake in Hub Safe that has led to a change in consolidation method for the firm results since the 4 quarter of 2017 . Hub Safe's results are now integrated as share in associates from non-operating activities. Over 2018, the net loss in revenue, linked to the share of external revenue of Hub Safe amounted to €8 million compared to 2017.
2018's data take into account the full consolidation of TAV Airports' results since the 2 half of 2017, and the full consolidation of AIG's results since April 2018.
Data excluding TAV Airports and AIG are presented for the monitoring of Group EBITDA forecast, excluding the full consolidation of TAV Airports and excluding the effects of any change in scope that occurred or may occur.
stood at €2,628 million over 2018. Excluding the full consolidation of TAV Airports and AIG, operating expenses were up (+3.7%). Excluding the bad debt losses related to international (EBITDA neutral), the increase in operating expenses would be +2.6% due to:
- the slight increase of the operating expenses of the parent company, Aéroports de Paris (+1.2%);
- an increase in expenses of subsidiaries (ADP International, ADP Ingénierie, Hub One) linked to the growth of their activities and development operations.
The distribution of operating expenses is as follows:
2018's data take into account the full consolidation of TAV Airports' results since the 2 half of 2017, and the full consolidation of AIG's results since April 2018.
Full time equivalent, of which average number of employees of AIG from the date of full consolidation.
Over 2018, consolidated stood at €1,961 million. The consolidated gross margin rate was 43.8%, up by 0.5 point. Excluding the full consolidation of TAV Airports and AIG, EBITDA stood at €1,359 million, up by 5.6%, i.e. €72 million. The gross margin rate was 43.3%, up by 0.4pt.
2018's data take into account the full consolidation of TAV Airports' results, since the 2 half of 2017, and the full consolidation of AIG's results since April 2018.
Over 2018, (including operating activities of associates) stood at €1,237 million, up by €207 million, due notably to:
- The scope effect of the full consolidation of TAV Airports since the 2 half of 2017 and AIG since April 2018, for an amount of €181 million;
- The capital gain of the re-evaluation of the already-owned 9.5%-stake in AIG for an amount of €23 million;
- The increase in depreciation in Paris (+€10.5 million, i.e. +2.3%);
- A provision on international stake for an amount of €20 million over 2018 vs. €46 million over 2017.
As a reminder, two exceptional items occurred in 2017:
- the recognition in 2017 of a gain on the translation reserve following the sale of TAV C (-€12m);
- the capital gain following the capital increase of TAV A (-€63m).
were down by €25 million, notably linked to the capital gain on the sale of a 80%-stake in Hub Safe, for an amount, net of selling costs, of €27 million.
stood at €1,235 million.
The stood at -€206 million. Excluding the full consolidation of TAV Airports and AIG, financial result stood at - €82 million, improving by €37 million.
As of 31 December 2018, Groupe ADP stood at €4,942 million, vs. €3,797 million as of 31 December 2017. Excluding the full consolidation of TAV Airports and AIG, Groupe ADP's net debt stood at €3,850 million as of 31 December 2018.
Aéroports de Paris issued on 11 October 2018 a 20-year bond of a total amount of €500 million, with a fixed rate of 2.125%.
stood at €335 million over 2018, up by €75 million, of which €43 million linked to the effect of the full integration of TAV Airports. Excluding the full consolidation of TAV Airports and AIG, the net increase in corporate income tax of 34 million euros is related firstly to the increase in income before tax (for 21 million euros on tax), and secondly to a effect rate between the two years for 13 million euros (effective rate at 33.67% in 2018 vs. 32.01% in 2017).
Taking into account all these items, the increased by €39 million, to €610 million.
Over 2018, aviation segment revenue, which includes Parisian activities alone, was up by 4.3% at €1,890 million.
Revenue from (passenger fees, landing fees and aircraft parking fees) was up by 5.6%, at €1,115 million over 2018, benefiting from the growth in passenger traffic (+3.8%) and the increase in tariffs, in spite of the first semester strikes. For information, tariffs (excluding PRM fees) have increased by 2.125% as of 1 April 2018.
were up by 3.6%, at €239 million, due to revenues from the registration banks (+6.2%, i.e. €5.2m) and proceeds from the PRM fee (+4.1%, i.e. €2.4m), in connection with the increase in traffic.
was up by 2.3%, at €239 million.
which mostly consists in re-invoicing the French Air Navigation Services Division, leasing associated with the use of terminals and other works services made for third parties, increased by 4.4%, at €41 million.
was strongly up by 9.4%, at €603 million. The gross margin rate increased by 1.5pt and stood at 31.9%.
As a consequence, the was strongly up by €36 million, at €308 million over 2018.
Over 2018, revenue from Retail and services, which includes Parisian activities alone, was up by 4.9%, at €1,000 million.
Revenue from (rents received from airside and landside shops, bars and restaurants, banking and foreign exchange activities, and car rental companies, as well as revenue from advertising) was up by 6.8% over 2018, at €490 million.
Rents from bars and restaurants kept on posting a strong growth of 13.4% at €48 million, thanks notably to the performance of the joint venture company EPIGO. Advertising revenue amount to €55 million, up by 10.0%, due to good results of which saw an increase of 11.3% of its revenue, at €59.2 million, following a significant increase in digital media (+7%). EBITDA is up by 17.6% at €9.7 million and its net result is up by 12.2% at €2.5 million.
Revenue from stood at €173 million, up by 1.1%.
Revenue from (supply of electricity and water) was down by 3.7%, at €129 million.
(leasing of spaces within terminals) was up by 1.7 %, at €149 million.
(mainly consisting in internal services) saw an increase of 37.5%, at €58 million, notably thanks to an increase of €13 million of the revenue linked to the works for the project .
of the segment was up (+8.9%), at €580 million, due to growth in revenue and control over expense. The gross margin rate was up (+2.1pt) at 58.0%.
The share of profit from operating associates (Société de Distribution Aéroportuaire, RELAY@ADP and EPIGO) amount to €2 million.
increased by 13.3%, at €458 million.
Over 2018, real estate segment revenue, which includes Parisian activities alone, was up by 6.0%, at €265 million.
(€218 million) was up by 4.9% notably thanks to the full acquisition of the "Dôme" building in Paris-Charles de Gaulle, which has a positive effect of €4.5 million on rents.
of the segment was down by 29.4%, at €148 million, due to the capital gain linked to the cargo hub buildings accounted for in "Other income and expenses" for an amount of €63 million during the 1 half of 2017.
Excluding the profit linked to the cargo hub buildings, the EBITDA was up by +1.3%.
The share of profit from operating associates stood at €2 million, up by €4 million due to a reversal of provision on studies following the confirmation of the Belaïa project, within .
As a consequence decreased, at €101 million, vs. €161 million over 2017. Excluding the capital gain linked to the cargo hub buildings, operating income from ordinary activities was up by 3.1%.
2018's data take into account the full consolidation of TAV Airports' results since the 2 half of 2017, and the full consolidation of AIG's results since April 2018.
Please note that the impact of the application of the norm IFRS 15 as from 1 January 2018 on the revenue from ordinary activities from contracts concluded with its customers has no significant impact on the revenue from the International and airport development segment (below €1 million).
Over 2018, revenue from International and airport developments strongly increased by €730 million, to €1,412 million, due to the scope change linked to the full consolidation of TAV Airports' results1 since July 2017 and the full consolidation of AIG's results2 since April 2018. EBITDA segment stood at €585 million.
revenue was up by €7 million, at €58 million. ADP Ingénierie EBITDA amounts to €0.8 million (vs. -€12m compared to 2017) and operating income from ordinary activities (including operating activities of associates) is null (vs. a result of -€13m in 2017). As of 31 December 2018, ADP Ingénierie's backlog stood at €75 million, strongly up compared to end of 2017 (€61 million).
, excluding its subsidiary ADP Ingénierie, saw its revenue increase by €173 million, to €188 million, out of which €175 million due to the full consolidation of AIG since April 2018.
ADP International's EBITDA stood at €37.2 million, up by €48.7 million, thanks to the contribution of the full consolidation of AIG's results for an amount of €54 million. ADP international Operating income from ordinary activities (including operating activities of associates) stood at €2.6 million, up by €41.3 million due to:
Over 2018, achieved an increase in revenue of €550 million, to €1,166 million.
In full year, TAV Airports revenue was up by 2.7%, thanks to very good traffic dynamics, to the growth of the activities of its subsidiaries, despite the depreciation of the Turkish lira.
TAV Airports' EBITDA rose by €268 million to €548 million:
In full year, TAV Airports' EBITDA was up by 7% to €514 million under the effect of the increase in revenue and thanks to a stability of the operating expenses.
TAV Airports' net result attributable to the group net result is up by €46 million, at €75 million.
Share of profit from operating associates, including mainly the share from operating associates of TAV Airports (in particular Antalya) and Schiphol Group stood at €75 million over 2018, vs. €77 million compared to 2017, i.e. a decrease of €2 million.
for International and airport developments stood consequently at €339 million, compared to a result of €186 million for 2017.
Following the sale by Groupe ADP of a 80%-stake of Hub Safe on 29 September 2017, Hub Safe sub-group is presented in share in associates from non-operating activities.
Over 2018, other activities segment revenue decreased by 28.3% at €155 million.
As a reminder, since 29 September 2017, date of the sale of 80%-stake in Hub Safe, Hub Safe has been accounted for as non-operational associates. From this date, the share in profit has been accounted for as share in associates from non-operating activities.
Over 2018, saw its products slightly increasing by 0.8% to €155 million. Hub One's EBITDA decreased by 34.1%, to €13.4 million due to re-negotiation of intragroup contracts, with no impact on the group financial accounts.
Segment EBITDA increased by €22 million to €47 million mainly linked to reimbursement of studies and works made for the project CDG Express (+€30m in 2018 compared to 2017).
The operating income from ordinary activities (including operating activities of associates) of the segment was up by €24 million, at €33 million.
Paris Aéroport handled a total of 105.3 million passengers in 2018, an increase of 3.8% compared to the previous year. Paris-Charles de Gaulle Airport welcomed 72.2 million passengers (+4.0%) and Paris-Orly Airport 33.1 million (+3.4%). Excluding the impact of the first semester strikes, the increase in traffic for Paris Aéroport would have been +4.5%. Traffic increased by 3.0% over the 1 half of the year and by 4.5% over the 2 half.
The number of connecting passengers has reduced by 2.5%. The connecting rate stood at 21.7%, down by 1.4 points. The load factor was up by 1.7 points, at 85.6%. The number of air traffic movements (709,997) was up by 0.8%.
Freight and postal activity decreased by 1.9%, with 2,251,729 tonnes transported.
On 15 January 2019, Aéroports de Paris SA took note of the decision n°1810-D1 of the Independent Supervisory Authority (ISA) not to approve the airport charges applicable from 1 April 2019, on Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget airports as well as their modulations, with the exception of fees for assistance to disabled passengers and passengers with reduced mobility. The ISA estimates that the overall product of the airport public service fees on the airport system, after taking into account the proposed tariffs increase, exceeds the services cost.
On 8 February 2019, Aéroports de Paris SA took note of the decision n°1810-D2 of 6 February 2019 of the Independent Supervisory Authority (ISA) to approve the airport charges applicable for the 2019-2020 tariff period . These tariffs will come into force from 1 April 2019 and will be up by 1.0% for Paris-Charles de Gaulle and Paris-Orly airports and 3.52% for Paris-Le Bourget airport.
The infrastructure manager CDG Express ("GI CDG Express"), equally owned by Groupe ADP, SNCF Réseau and Caisse des Dépôts et Consignations, has signed today with the French State the concession contract for works relating to the CDG Express link project. Under this contract, GI CDG Express is responsible for financing, designing, building and maintaining the CDG Express link for 50 years. It will connect the Gare de l'Est (Paris-East station) to Paris-Charles de Gaulle Airport in 20 minutes. Groupe ADP will be committed to finance the project through equity contribution of €134 million and a non-renewable repayable advance of up to €150 million.
In January 2019, Paris Aéroport welcomed 7.7 million passengers; an increase of 1.9% compared with January 2018. 5.4 million passengers travelled through Paris-Charles de Gaulle (+2.9%) and 2.4 million through Paris-Orly (-0.4%).
During its meeting on 14 February 2019, the Board of Directors approved the social and consolidated financial statements for the year ended 31 December 2018. The Board of Directors decided to propose a dividend payment of €3.70 per share for 2018, reduced by the interim dividend for 2018 of €0.70/share, paid out on 10 December 2018, at the next Annual Shareholders General Meeting, to be held on 20 May 2019. Subject to the approval of the Annual General Meeting, the ex-dividend date would be on 7 June 2019, and payment would be made on 11 June 2019. This dividend corresponds to a payout ratio of 60% of the 2018 net income attributable to the Group.
(1) TAV Airports' EBITDA guidance, underlying Group's EBITDA guidance, is built on the following exchange rate assumptions: EUR/TRY = 6.7, EUR/USD = 1,17
(2) Takes into account the introduction of the mechanism charging Aéroports de Paris 6% of the costs hitherto fully covered by the airport tax, in accordance with Article 179 of Law No. 2018-1317 of finance dated 28 December 2018.
(3) The closure of Atatürk Airport is expected to take effect on 3 March 2019. Therefore, as this is a discontinued operation within the meaning of the norm IFRS5, the contribution of this airport in 2019 will not be included in the EBITDA calculation.
(4) EBITDA as published by TAV Airports includes Ankara guaranteed passenger revenue (net of accretion income on the linked financial claim) and the share of equity pick-up
(5) TAV traffic at 100%
(6) Net result attributable to the Group
The achievement of these forecasts are subject to the assumption of traffic growth in Paris Aéroport and the good run of TAV Airports' strategy.
The closure of Atatürk Airport is expected as of 3 March 2019. Therefore, as this is a discontinued operation under the norm IFRS5, the contribution of this airport in 2019 will not be included in EBITDA, but fully in income from discontinued operations (in non-operating income).
In 2018, the contribution of TAV Istanbul, the entity holding the Atatürk operating contract, is €471 million in revenue, €263 million in EBITDA, €97 million in Operating income from ordinary activities (after PPA impacts).
Groupe ADP 2016-2020 targets, as announced on 13 October 2015 are partially modified and have to be understood independently from the effect of the full consolidation of TAV Airports and AIG. Groupe ADP will continue to present a consolidated EBITDA excluding the effect of the full consolidation of TAV Airport and AIG in order to follow the 2020 EBITDA target.
(1) Return on capital employed calculated as the operating profit of the regulatory scope after normative tax on companies in relation to the regulated asset base
(2) Excluding SGP
(3) Extra-financial rating perimeter: ADP and its subsidiaries at 100%
Objectives presented here-above are based on data, assumptions and estimates considered as reasonable by the management of the group.
Audrey Arnoux: - invest@adp.fr
Lola Bourget:
finance.groupeadp.fr
The financial information presented within this press release comes from Aéroports de Paris'consolidated financial statements. Audit procedures have been carried out and the audit report relating to the certification of Aéroports de Paris consolidated financial statements at 31 December 2018 is in the process of being issued.
Consolidated financial statements at 31 December 2018 and the related report are available on the Group website (www.groupeadp.fr) in the section "Group / Finance / AMF information".
This press release 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 disclosures are based on data, assumptions and estimates deemed reasonable by Aéroports de Paris. They include in particular information relating to the financial situation, results and activity of Aéroports de Paris. These data, assumptions and estimates are subject to risks (such as those described within the reference document filed with the French financial markets authority on 31 March 2017 under D-17-0288) and uncertainties, many of which are out of the control of Aéroports de Paris and cannot be easily predicted. They may lead to results that are substantially different from those forecasts or suggested within these disclosures.
Groupe ADP develops and manages airports, including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget. In 2018, the group handled through its brand Paris Aéroport more than 105 million passengers and 2.3 million metric tonnes of freight and mail at Paris-Charles de Gaulle and Paris-Orly, and more than 176 million passengers in airports abroad through its subsidiary ADP International. Boasting 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; the group also intends to develop its retail and real estate businesses. In 2018, group revenue stood at €4,478 million and net income at €610 million.
Registered office: 1 rue de France - 93290 Tremblay en France, France. A public limited company (Société Anonyme) with share capital of €296,881,806. Registered in the Bobigny Trade and Company Register under no. 552 016 628.
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