Trasporti
Aéroports de Paris SA - 2023 Half-year Results
FINANCIAL RELEASE
July 27 , 2023
Aéroports de Paris SA
2023 HALF-YEAR RESULTS IN LINE WITH OUR EXPECTATIONS
TRAFFIC ASSUMPTIONS AND FINANCIAL TARGETS CONFIRMED
Unless otherwise indicated, changes are expressed in comparison with the 2022 half-year results.
2023 – 2025 forecasts and hypothesis are summarized on page 19 of this financial release.
Key figures for the half-year 2023 are presented in a table on page 2 of this financial release.
Operational and financial indicators definitions appear in appendix 2.
Augustin de Roman et, Chairman and CEO of Groupe ADP , stated :
"Half-year 2023 results are in line with our expectations. Since the beginning of the year, we have welcomed 155.4 million passengers across our airport network, including 47.1 million in Paris. Momentum is strong in our retail activities, with Extime sales per Pax at 29.6 euros, up +4.1 euros (+16.2%) compared with the 1 half of 2022, and +7.1 euros (+31.7%) compared with the 1 half of 2019. Overall, the group records revenue of 2,545 million euros, up +26.9%. EBITDA reaches 863 million euros, representing a margin of 33.9% of revenue, in line with our forecasts. Net income attributable to the Group is up +31.8% to 211 million euros. Our activities are by nature seasonal, alternating peaks in traffic in our airports during holidays periods with weeks of more moderate traffic. Post-Covid, as activity recovers, we see in the airlines' offering a trend that strengthens the seasonality effect which could further improve performance in the 2 part of the year. Our assumptions remain unchanged: 2023 traffic is expected to reach up to 93% of 2019 level in Paris Aéroport and to get close to 2019 traffic at group level. Our financial forecasts are confirmed, with an EBITDA margin expected between 32% and 37% of revenue this year. I would like to pay tribute to the commitment of Groupe ADP teams who, in a challenging context, are mobilizing their expertise and sense of hospitality for the success of the major sporting events to come in France and for the pursuit of the decarbonization of aviation with our " 2025 Pioneers " roadmap. During summer 2024 especially, the Paris Olympic and Paralympic Games will start and end in our airports for many people: it is a wonderful challenge for the whole airport community, as well as for our territories, and a unique opportunity to demonstrate our expertise and commitment."
The Half-year 2023 results have been approved by the Board of Directors of July 27 , 2023. They have been subject to a limited review by the statutory auditors, and the limited review report is in the process of being issued.
Key figures
Highlights
Launch of Abelia, Aéroports de Paris SA new employee shareholding scheme
Following the approval of the Annual General Meeting of Shareholders on May 16 , 2023, Aéroports de Paris launched its new employee shareholding operation on June 21 , 2023, the roll-out of which will be phased in 2023 and 2024. Entitled ABELIA, the transaction involves a maximum of 305,985 shares (or around 0.3% of the capital), corresponding to the 296,882 shares bought back from Royal Schiphol Group in December 2022 (see press release of December, 6 2022) and 9,103 shares remaining from the employee shareholding plan implemented in 2016.
ABELIA is part of " 2025 Pioneers " roadmap (see press release of February 16 , 2022 ) which provides for Aéroports de Paris to carry out at least one employee shareholding operation by 2025. It will be divided into two parts:
This operation is part of the development of a new culture of value sharing, involving employees in the company's performance.
The financial impact of this transaction to be booked in 2023 and 2024 is estimated at around 27 million euros in ADP SA's personnel expenses, of which 4 million euros were booked at June 30 , 2023.
New salary measures from July 1 , 2023
To reward the involvement and commitment of Aéroports de Paris employees during this period of strong recovery in activity and major challenges ahead, the company has initiated new unilateral salary measures. They come on top of measures already taken or planned since July 2022.
From July 1 , 2023, these new measures provide for a 1.5% general increase in base salary for all Aéroports de Paris employees.
Progress on the GIL & GAL merger project
During the 2 quarter of 2023, several steps were achieved following the agreement between Groupe ADP and GMR Enterprises to form an airport holding company listed on the Indian Stock Exchanges by the first half of 2024 (see press release of March 19 2023):
As previously announced, the NCLT's final decision, following approval by the shareholders and creditors of both companies, is expected in the 1 half 2024, and would lead to the completion of the merger transaction.
Project for TAV Airports to sell part of its stake in Medina airport
On June 22 , 2023, the Board of Directors of TAV Airports approved the sale of 24% of the capital of Tibah Airports Development, the company operating Medina airport in Saudi Arabia, in which TAV Airports holds a total stake of 50% and which is accounted for under the equity method in the Group's financial statements.
Following this decision, these equity-accounted shares, together with the balance attributable to these shares of the shareholder loan granted to Tibah by TAV Airports, have been reclassified, as of June 30 , 2023, as assets held for sale within the definition of IFRS 5 .
See Events since June 30 , 2023, on page 17 of this press release for the agreement signed on July 7 , 2023.
Aéroports de Paris rating confirmed by S&P Global Ratings
On June 14 , 2023, Standard and Poor's reaffirmed its long-term A credit rating, with negative outlook, for Aéroports de Paris.
D eployment of complementary hospitality initiatives
In order to ensure the best possible fluidity and quality of service in its Parisian aiports, the group alongside its partners has deployed various measures, particularly for the 2023 summer season, with a view to:
JCDecaux and Groupe ADP launch the Extime JCDecaux Airport
As Extime Media has been operating since June 22 , 2023, the two co-shareholders announced on July 18 , 2023 (see press release – available in French only), the launch of Extime JCDecaux Airport (previously JCDecaux Airport Paris), the new Extime JCDecaux Airport brand aims to become the new benchmark brand in the airport media world, by expanding internationally, with the deployment of its activities in Turkey from 2024 and in Jordan during 2025.
This announcement follows the Groupe ADP's choice, after a public consultation, of JCDecaux as co-shareholder in Extime Media to operate advertising activities at Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget airports until December 2034 (see press release of July 28 , 2022)
Groupe ADP chooses Lagardère Travel Retail as co-shareholder in the future joint venture Extime Travel Essentials Paris
Following the advertising and competitive bidding process launched by Groupe ADP for the Travel Essentials business (including books and press products, gifts and souvenirs, groceries and take-away snacks, and travel accessories) for the Paris-Charles de Gaulle and Paris-Orly airports, Lagardère Travel Retail was chosen to become the co-partner in Extime Travel Essentials Paris (see press release of July 24 , 2023 – available in French only)
Subject to the approval of the relevant competition authorities, Extime Travel Essentials Paris will operate over sixty sale points for a period of ten years starting February 1 , 2024, notably under the RELAY banner and in partnership with a large number of brands. The joint venture will be equally owned by the Groupe ADP (50%) and Lagardère Travel Retail (50%).
Support for low-carbon aviation and electric urban air mobility
On the occasion of the Paris Air Forum and the Paris Air Show which took place from June 19 to June 25 , 2023, Groupe ADP has announced the completion of several projects that are part of the active approach deployed by the group to support the decarbonization of the sector:
The Paris 2024 Olympic and Paralympic Games as a driver of innovation towards the airport of tomorrow
Ahead of the Paris 2024 Olympic and Paralympic Games, the group is conducting innovative projects at Paris airports with the aim of achieving greater operational efficiency, enhanced service quality and lower environmental impact:
These initiatives are in line with the "2025 Pioneers" strategic roadmap objective of rolling out 120 innovative experiments by 2025.
Groupe ADP's half-year 2023 results presentation
Half -year 2023 consolidated accounts
Revenue
Groupe ADP's consolidated revenue stood at 2,545 million euros in 1 half of 2023, up +26.9% (+539 million euros) compared to the 1 half of 2022, mainly due to the positive effect of traffic recovery on:
The amount of inter-sector eliminations stood at 158 million euros (+15.1%) over the 1 half of 2023, compared to 137 million euros during the same period in 2022.
EBITDA
Group's operating expenses stood at 1,729 million euros in the 1 half of 2023, up +26.4% (+362 million euros). The distribution of the group's operating expenses was as follows:
Other income and expenses represented a net product of 47 million euros, down -26.9% (-17 million euros) due to:
Over 1 half of 2023, the group's consolidated EBITDA stood at 863 million euros, up +22.9% (+161 million euros). EBITDA margin stood at 33.9% of revenue as of 1 half of 2023, down -1.1 point due to the trend in ordinary expenses, and the normalization of Almaty's performance after a particularly strong performance in 2022 (see page 14, International segment performance).
Net result attributable to the Group
Amortization and impairment of tangible and intangible assets stood at 396 million euros, up +11.4% (+40 million euros), mainly due to:
Share of profit or loss in associates and joint ventures stood at -18 million euros, down -12 million euros, mainly due to:
Operating income from ordinary activities stood at 449 million euros, up +31.6% (+109 million euros), driven by the EBITDA, up +161 million euros (+22.9%), partially offset by the items described above.
Operating income stood at 444 million euros, up +27.5% (+96 million euros), especially due to the increase of operating income from ordinary activities.
Financial result stood at -139 million euros, down -18 million euros (+14.8%), mainly due to the increase of gross cost of debt of TAV Airports for -17 million euros.
The income tax expense stood at 110 million euros, compared to 59 million euros in 1 half of 2022 due to the increase of income before tax .
Net income stood at 194 million euros on 1 half of 2023, up +16.4% (+27 million euros) compared to the same period in 2022.
Net income attributable to non-controlling interests was up +24 million euros, to 17 million euros.
Given all these items, net income attributable to the G roup stood at 211 million euros, up +31.8% (+51 million euros) compared to the same period in 2022.
Cash and investments
As of June 30 , 2023, Groupe ADP had cash position of 2.3 billion euros. Over the 1 half of 2023, cash is down -380 million euros (-14.4%), operating cash flows, standing at 681 million euros was more than offset by:
In view of this available cash and its forecasts for 2023, the group has liquidity that it considers satisfactory in the current macroeconomic context and to meet its operating needs and financial commitments.
Tangible and intangible investments stood at 353 million euros over 1 half of 2023, compared to 270 million euros over 1 half of 2022.
Financial debt
Groupe ADP's net financial debt stood at 8,089 million euros as of June 30 , 2023, compared to 7,440 million euros as of December 31 , 2022. As of June 30 , 2023, debt ratio stood at 4.3x EBITDA over the last 12 months, compared to 4.4x EBITDA at the end of 2022.
Analysis by segment
Aviation – Parisian platforms
Over 1 half of 2023, revenue of aviation segment , which relates solely to the airport activities carried out by Aéroports de Paris as operator of the Parisian platforms, was up +23.9% (+178 million euros) to 919 million euros.
Revenue from airport fees (passenger fees, landing fees and aircraft parking fees) was up +25.1% (+109 million euros), to 543 million euros due to:
Revenue from ancillary fees was up +28.6% (+27 million euros), to 119 million euros, linked to the increase in passenger traffic.
Revenue from airport safety and security services was up +20.1% (+40 million euros), to 238 million euros. Revenue from operating safety and security services are determined by the partially fixed costs of these activities, revenue is growing at a lower rate than passenger traffic.
Other income , mostly consisting in re-invoicing to the French Air Navigation Services Division of leasing associated with the use of terminals and other work services made for third parties are up +13.8% (+3 million euros), to 19 million euros.
EBITDA was up +20.6% (+38 million euros) to 224 million euros due to the increase in revenue.
Operating income from ordinary activities was up +30 million euros, to 37 million euros over 1 half of 2023, due to the EBITDA increase.
Retail and services – Parisian platforms
Over the 1 half of 2023, Retail and services segment revenue , which includes only Parisian activities was up +30.8% (+193 million euros), to 818 million euros.
Revenue from retail activities consists in revenue received from airside and landside shops, bars and restaurants, banking and foreign exchange activities, and car rental companies, as well as revenue from advertising.
Over the 1 half of 2023, revenue from retail activities was up +40.2% (+148 million euros), to 515 million euros, due to:
Revenue from car parks was up +24.9% (+16 million euros), to 83 million euros, linked to the increase of passengers traffic.
Revenue from industrial services (supply of electricity and water) was up +15.4% (+14 million euros), to 105 million euros.
Rental revenue (leasing of spaces within terminals), was up +14.7% (+10 million euros), to 79 million euros.
Other revenue (primarily constituted of internal services) was up +13.2% (+5 million euros), to 37 million euros.
EBITDA was up +38.0% (+95 million euros), to 345 million euros, mainly due to higher revenue from retail activities, notably Extime Duty Free Paris.
Operating income from ordinary activities was up +50.8% (+93 million euros), to 276 million euros, due to the EBITDA increase.
Real Estate - Parisian platforms
Over the 1 half of 2023, revenue from the Real Estate segment , which includes only Parisian activities, up +7.6% (+11 million euros), to 167 million euros.
External revenue realized with third parties, up +10.6% (+14 million euros), to 146 million euros, mainly due to additional rents related to assets returned to full ownership in 2022 and the effect of indexation clauses on rents.
Internal revenue , down -9.2% (-2 million euros), to 22 million euros notably as a result of the reduced use of internally offices, through the implementation of a new flex office organization. The space freed up in this way being attended to be rented out to third parties.
EBITDA of the segment up +19.9% (+18 million euros), to 109 million euros.
Operating income from ordinary activities up +40.8% (+24 million euros), to 81 million euros.
International and airport developments
Over the 1 half of 2023, revenue from the International and airport developments segment was up +31.8% (+171 million euros), to 709 million euros, mainly due to the increase in revenue from TAV Airports and AIG.
Revenue from AIG was up +21.5% (+22 million euros), to 126 million euros, mainly due to the increase of +34.8% of revenue from airport fees, linked to the increase of traffic in Amman, up +33.9%.
Revenue from ADP Ingénierie down -55.8% (-7 million euros) to 5 million euros, linked with the business restructuring project currently underway.
TAV Airports revenue was up +36.3% (+148 million euros), to 558 million euros, due to:
EBITDA of segment was up +2.4% (+4 million euros), to 167 million euros:
Operating income from ordinary activities of the segment stood at 45 million euros, down -50.7% (-45 million euros), due to:
Hyperinflation in Turkey : In the context of very high inflation in Turkey, group entities whose functional currency is the Turkish lira are obliged to apply the provisions of IAS 29 "Financial Reporting in Hyperinflationary Economies" from February 2022 onwards, requiring the restatement of the financial statements to take account of changes in the general purchasing power of this currency. The limited effect on the Group's financial statements is described in note 2 of the consolidated financial statements.
Other activities
Over the 1 half of 2023, products from the other activities segment , were up +9.1% (+7 million euros), to 90 million euros.
Revenue from Hub One was up +3.8% (+3 million euros), to 81 million euros.
EBITDA was up +35.6% (+4 million euros), to 17 million euros.
Operating income from ordinary activities was up +168.0% (+6 million euros) compared to the same period in 2022, to 10 million euros.
Traffic evolution in the 1 half of 2023
Group Traffic :
Traf f ic at Paris Aéroport
Over the 1 half of 2023, Paris Aéroport traffic was up +25.7% with a total of 47.1 million of passengers, at 90.0% of traffic in the same period in 2019.
Geographical breakdown is as follows:
IMPORTANT NOTE: Since the traffic release of December and the year 2022, the geographical breakdown at Paris Aéroport within this release as well as in the historical data used for variation and recovery calculations are aligned with the different categories applicable to airport fees. It presents the detailed breakdown of the "Europe" traffic into three categories: "Schengen Area" traffic, "UE excluding Schengen & United Kingdom" traffic, and "Other Europe" traffic. Traffic with "French overseas territories", is presented separately from the "International" traffic, in which it was included until the November 2022 traffic release. It is reminded that airports fees applicable to these different categories are available on the company website .
The number of connecting passengers was up +19.8%. Connecting rate stood at 20.3%, down – 1.1 point compared to 1 half of 2022. Seat load factor was up +6.1 points, at 84.5%.
Aircraft movements at Paris Aéroport was up +14.3%, at 311,701 movements, of which 214,247 movements at Paris-Charles de Gaulle, up +16.4%, at 88.9% of 2019 level, and 97,454 movements at Paris-Orly, up +10.1%, at 88.0% of 2019 level.
Events occurred since June 30 , 2023
TAV Airports sells part of its stake in Medina airport
TAV Airports have signed a share purchase agreement (SPA) with Mada International Holding (Mada) on July 7 , 2023 of 24% of shares of Tibah Airports Development (Tibah), the company operating Medina airport in Saudi Arabia, equally owned by TAV Airports and Mada. This agreement provides that:
In addition, a new shareholder agreement will be signed with Mada, preserving the current method of co-controlling governance of TIBAH.
Reminder of traffic assumptions, forecasts and targets 2023-2025
As part of the 2025 Pioneers strategic roadmap communicated on February 16th, 2022, Groupe ADP has set out targets up to 2025. These targets have been built on the assumptions of no new restrictions or airport closures linked to the health crisis, of a stability of the economic model in Paris and of an absence of abnormally high volatility in terms of exchange rates and inflation rates. They have also been built on the basis of the consolidation scope at the end of 2021, with no assumption of changes up to 2025.
It is specified that any further changes to the assumptions on which the group's targets are based could have an impact on the volume of traffic and the 2025 Pioneers financial indicators.
Financial calendar
A live webcast of the conference will be available at the following link: webcast (only in english)
Registration to participate in the Q&A session is available at the following link: call registration
Forward looking statements
This presentation does not constitute an offer to purchase financial securities within the United States or in any other country.
Forward-looking disclosures (including, if so, forecasts and objectives) are included in this press release. These forward-looking disclosures are based on data, assumptions and estimates deemed reasonable at the diffusion date of the present document but could be unprecise and are, either way, subject to risks. There are uncertainties about the realization of predicted events and the achievements of forecasted results. Detailed information about these potential risks and uncertainties that might trigger differences between considered results and obtained results are available in the registration document filed with the French financial markets authority on April 14 , 2023 under D.23-0284, retrievable online on the AMF website www.amf-france.org or Aéroports de Paris website www.parisaeroports.fr.
Aéroports de Paris does not commit and shall not update forecasted information contained in the document to reflect facts and posterior circumstances to the presentation date.
Definitions
Definition and accounting of Alternative Performance Measures (APM) as well as the segmentation of group activities presented in this press release are fully published in the Group universal registration document. It is available in Groupe website: AMF Information.
Investor Relations contacts: Cécile Combeau +33 6 32 35 01 46 and Eliott Roch +33 6 98 90 85 14 - invest@adp.fr
Press contact: Justine Léger, Head of Medias and Reputation Department +33 1 74 25 23 23
Groupe ADP develops and manages airports, including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget. In 2022, the group handled through its brand Paris Aéroport 86.7 million passengers at Paris-Charles de Gaulle and Paris-Orly, and nearly 193.7 million passengers in airports abroad. 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 2022, group revenue stood at €4,688 million and net income at €516million.
Registered office: 1, rue de France, 93 290 Tremblay-en-France. Aéroports de Paris is 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.
groupeadp.fr
Appendix 1 – Consolidated financial statement as of June 30 , 2023
Half-Year 2023 c onsolidated financial statement
Consolidated balance sheet as of June 30 ,
2023
Half-Year 2023 consolidated statement of cash flows
Appendix 2 – Glossary
Definition and accounting of Alternative Performance Measures (APM) as well as the segmentation of group activities presented in this press release are fully published in the Group universal registration document.
It is available in Groupe website: AMF information - Groupe ADP (parisaeroport.fr)
Financial indicators :
Operating indicators:
Group traffic includes airports operated by Groupe ADP in full ownership (including partial ownership) or under concession, receiving regular commercial passenger traffic, excluding airports under management contract. Historical data since 2019 is available on the Company's website.
Appendix 3 – Evolution of tariffs at Paris Aéroport
As a reminder, the French Transport Regulation Authority (ART) has, for the 2022 tariff period, i.e. since April 1 , 2022 approved the tariff proposals as follows: a +1.54% increase in passenger fee, a freeze in the unit rate of the parking fee and the landing fee and an average increase of +0.95% for ancillary fees with the exception of the PRM (Person with reduced mobility) fee which will increase by +10.0% on the Paris-Charles de Gaulle platform and +0.94% at Paris-Orly. For the Paris Le Bourget airport, the ART approved fee evolutions of +0.91% for landing fees and +19.9% for parking fees.
By its decision n°2022-087 of December 8 , 2022, published on January 13 , 2023, the ART has approved the airport fees for Aéroports de Paris for the tariff period from April 1 , 2023, to March 31 , 2024. The approved proposal translates, by an average rate stability, for Paris-Charles de Gaulle and Paris-Orly, tariffs evolutions offsetting each other. These measures involve the reduction of the parking fee by approximately -2.7%, the increase of the fee for assistance to persons with reduced mobility by +2.5% at Paris-Charles de Gaulle and by +10.0% at Paris-Orly and the +7% increase in the fixed portion of the annual fee for check-in counters, boardings desks and local luggage handling for Paris-Orly and Paris-Charles de Gaulle.
For Paris-Le Bourget airport, the average increase in fees is approximately +2.5%, resulting from a +2.1% increase in the landing fee, a modification of the acoustic modulation coefficients for group 6 aircrafts, a freeze in the fee for the provision of airport circulation permits and a +2.5% increase in the parking fee. The applicable fees are available on the company's website.
1 Sales per passenger in the airside activities, including shops, bars & restaurants, foreign exchange & tax refund counters, commercial lounges, VIP reception, advertising and other paid services in the airside area.
2 Changes vs. 2022 and traffic % vs. 2019 hereabove are calculated on a like-for-like basis, by comparing 2023 traffic data with historical traffic data for the current scope (see Appendix 2 of this press release), except from Goa airport in 2023, opened on January 5 , 2023.
3 Group traffic includes airports operated by Groupe ADP in full ownership (including partial ownership) or under concession, receiving regular commercial passenger traffic, excluding airports under management contract. Historical data since 2019 is available on the company's website.
Sales per passenger in the airside activities, including shops, bars & restaurants, foreign exchange & tax refund counters, commercial lounges, VIP reception, advertising and other paid services in the airside area.
Net financial debt compared to EBITDA over the last
12 months.
6 IFRS 5 accounting standard "Non-current assets held for sale and discontinued operations" sets out the requirements for the classification, measurement and presentation of non-current assets held for sale. This standard is intended to prepare the reader of the financial statements for the future removal of the asset from the company's balance sheet, and for the impending disappearance of income and cash flow items.
7 See note 6.1.1 "Airport Operating Ri ght " to the consolidated financial statements of Groupe AD P , shown on page 381
of the 2022 Universal Registration Document .
8 see press release of March 19 2023
9 See note 6.1.1 "Airport Operating Right" to the consolidated financial statements of Groupe AD P , shown on page 381
of the 2022 Universal Registration Document .
Group traffic includes traffic from airports operated by Groupe ADP in full ownership (including partial ownership) or under concession, receiving regular commercial passenger traffic, excluding airports under management contract. Historical data since 2019 is available on the company's website .
Changes vs. 2022 and traffic % vs. 2019 hereabove are calculated on a like-for-like basis, by comparing 2023 traffic data with historical traffic data for the current scope (see Appendix 2 of this press release), except from Goa airport in 2023, opened on January 5 , 2023 .
Antananarivo & Nosy Be airports.
13 Traffic with Croatia w as included in the EU ex. Schengen until April 2023. It i s now accounted within the Schengen Area since April 2023 onwards.
14 Group traffic includes traffic from airports operated by Groupe ADP in full ownership (including partial ownership) or under concession, receiving regular commercial passenger traffic, excluding airports under management contract. Historical data since 2019 is available on the company's website .
15 Sales per passenger in the airside activities, including shops, bars & restaurants, foreign exchange & tax refund counters, commercial lounges, VIP reception, advertising, and other paid services in the airside area.
16 Subject to change
17 See press release of March 19 , 2023 .
Attachment
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