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Aéroports de Paris SA: Consolidated revenue over the first 9 months of 2020 impacted by the crisis linked to the CoVid-19 epidemic
FINANCIAL RELEASE AS OF 30 SEPTEMBER 2020
23 October 2020
Aéroports de Paris SA
Consolidated revenue over the first 9 months of 2020
impacted by the crisis linked to the CoVid-19 epidemic
Consolidated revenue of Groupe ADP
Groupe ADP's traffic : group's traffic over the first 9 months of 2020 is down by 61.8% at 72.3 million passengers compared to the same period in 2019 (excluding traffic at Istanbul Atatürk and GMR Airports' traffic in 2019)
Paris Aéroport traffic: (Paris-Charles de Gaulle and Paris-Orly) : -66.3% at 27.8 million passengers over the first 9 months of 2020 compared to the same period in 2019
Consolidated revenue down by 52.7% at €1,669 million over the first 9 months of 2020 compared to same period in 2019 due to the impact of crisis linked to the CoVid-19 pandemic on traffic
Groupe ADP revenue by segment for the 9 first months of 2020 compared to the 9 first months of 2019
(1) These figures take into account the full consolidation of Société de Distribution Aéroportuaire and of Relay@ADP results since April 2019
Augustin de Romanet, Chairman and CEO of Aéroports de Paris SA – Groupe ADP, stated:
" Over the first 9 months of 2020, the group's traffic fell by 61.8%, with a total of 72.3 million passengers, and that of Paris Aéroport by 66.3%, with 27.8 million passengers. The crisis linked to the CoVid-19 epidemic continues to affect the aviation sector and weigh t on the resumption of the traffic. The resurgence of the
epidemic in France and in Europe has led us to revise our traffic assumptions for Paris Aéroport in 2020 downwards from -63% to a range of -65% to -70% compared to 2019. Our guidance
for the consolidated revenue for the year 2020 is therefore situated in a range of - 2.3 to - 2.6 billion euros compared to 2019. Groupe ADP continues to implement its operational and financial
optimization plan with an acc entuated objective of reducing operating
expenses for th e year 2020 in a range of €650m to €700m in total compared to
€550m previously, by seeking in particular an adaptation of the opening of infrastructures taking into account the level and the nature of th e traffic. Groupe ADP keeps
a solid cash position ensuring a sufficient level of liquidity. In a very disturbed context, marked by the continuation of health uncertainties, Groupe ADP remains mobilized to maintain its operational and financial balance, adapt its economic and social model in order to enable the company to return to
a profitable and sustainable growth. "
Update on the situation related to the CoVid-19 epidemic
Air transport was abruptly interrupted from April to June as a result of the containment measures and borders closures decided by most countries in the world to limit the spread of the CoVid-19 epidemic. The resumption of traffic has since been very gradual and depends on the lifting of the mobility restriction measures applicable in each country. Over the first 9 months of 2020, Groupe ADP passengers traffic was thus down by 61.8% compared to the same period in 2019.
Traffic at Paris Aéroport is down by 66.3% over the first 9 months of 2020 compared to the first 9 months of 2019, with 27.8 million passenger welcomed, compared with 82.7 million passengers. Aircraft movements at Paris Aéroport are down by 56.8% compared to the first 9 months of 2019. Between the 1 and 20 October 2020, the estimated decline of passenger traffic and aircraft movements at the Parisian platforms reaches -75.9% and -60.1% compared with the period between the 1 and 20 October 2019 .
u Situation abroad
In the context of the CoVid-19 crisis, exceptional impairments on certain fully consolidated or equity-accounted international assets were recorded with an overall impact of €177 million in net result attributable to the Group as of 30 June 2020. New depreciations could be recorded as of 31 December 2020 in line with the economic situation currently encountered by the sector.
Regarding international assets, the decrease in traffic due to the CoVid-19 pandemic as well as its unfavorable economic consequences may require discussions with the concerned counterparties in order to guarantee the financial and operational sustainability of the asset in cause.
In particular, Groupe ADP, as a shareholder of AIG, concessionary company of Amman airport in Jordan, could have to support the concessionary company in the form of a shareholder loan for an amount of around €20 million before a restructuring which is the subject of discussion between the stakeholders. Regarding TAV Tunisia, a consensual solution is being developed.
u Solid financial structure and strengthened liquidity
Groupe ADP had a cash position of €3.6 billion as of 30 September 2020, of which €730 million was held by TAV Airports.
Given its available cash, the group does not anticipate any short-term cash flow difficulties. Furthermore, given its long-term credit rating (A negative outlook by the Standard and Poor's agency since 25 March 2020) and the confidence in the strength and the adaptability of its financial model, Groupe ADP does not anticipate any particular medium or long-term financing difficulties.
u Trends for the group
To date , the traffic assumption at Paris Aéroport has been revised downwards by approximately - 63% to a range of between - 65% and - 70% for the year 2020 compared to 2019. Moreover, the group confirms that traffic for Paris Aéroport could return to the level reached in 2019 at the end of the period between 2024 and 2027.
Under these conditions, the impact on the group's consolidated revenue in 2020 would be around - 2.3 to - 2.6 billion euros.
Groupe ADP also reiterates that it has initiated an important operational and financial optimization plan with an objective of reducing the group's operating expenses for the year 2020 by approximately €550 million in total: this objective has been revised upwards to a range of between €650 million and €700 million in total.
Regarding the financial debt, Groupe ADP confirms the objective of a net debt/EBITDA ratio between 6x and 7x by the end of 2022.
First 9 months of 2020 consolidated revenue – Analysis by segment
Aviation activities – Parisian platforms
Over the first 9 months of 2020, revenue from the Aviation segment , which only includes Parisian aviation activities, is down by -53.2%, at €686 million. It does not vary in the same proportion as the passenger traffic over the same period (-66.3%), notably due to rigidity of revenue from airport safety and security.
Revenue from airport fees (passenger fees, landing fees and aircraft parking fees) is down by -61.8%, at €338 million, due to the effect of the decline in passenger traffic compared to the first 9 months of 2019.
The suspension of the parking fees, implemented on 16 March 2020 for the aircrafts immobilized on the Parisian platforms because of confinement measures in response to the crisis linked to CoVid-19, which has been renewed from 1 July 2020 on the basis of different conditions, will take end on November 1 .
Revenue from ancillary fees is down at €71 million due to the decline in passenger traffic.
Revenue from airport safety and security services is down at €253 million, due the decline in passenger traffic.
Other income mostly consists in re-invoicing the French Air Navigation Services Division and leasing associated with the use of terminals and other works services made for third parties. They stand at €24 million over the first 9 months of 2020.
Retail and services – Parisian platforms
(1) These figures take into account the full consolidation of Société de Distribution Aéroportuaire and of Relay@ADP results since April 2019
Over the first 9 months of 2020, revenue from Retail and services , which includes only Parisian activities, is down by -52.4%, at €509 million.
Revenue from retail activities consists in 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.
Over the first 9 months of 2020, retail activities revenue stands at €253 million.
As a reminder, this figure takes into account the full consolidation since April 2019 of Société de Distribution Aéroportuaire which revenue stands at €176 million, and of Relay@ADP which revenue stands at €17 million.
Sales/Pax of airside shops reaches €18.6 € over the first 9 months of 2020, slightly down by 2.0% compared to the same period in 2019.
The revenue from car parks is down (-50.2 %), at €64 million.
Revenue from industrial services (supply of electricity and water) is down by -22.3 %, at €76 million.
Rental revenues (leasing of spaces within terminals) are down by -19.8 %, at €88 million.
Other revenues (primarily constituted of internal services) decrease by €28 million euros, at €28 million, notably due to a €16 million decrease on works for the project Société du Grand Paris.
Real Estate – Parisian platforms
Over the first 9 months of 2020, revenue from the Real estate segment , which only includes Parisian activities, was up by 1.1%, at €213 million.
External revenue was up by 0.8%, at €177 million.
International and airports developments
(1) These data take into account the full integration of MZLZ-TRGOVINA D.o.o (Société de Distribution Aéroportuaire Croatia) since April 2019
Over the first 9 months of 2020, revenue from the International and airports developments segment stood at €334 million, up by 60.1% compared to the first 9 months of 2019 mainly due to:
Over the first 9 months of 2020, the revenue of ADP Ingénierie is down by €11 million and stands at €31 million.
Other activities
Over the first 9 months of 2020, other activities segment products decreased by 18.1%, at €101 million, notably due the non-renewal of some surveys performed in 2019 for the CDG Express project (which are re-invoicing).
Main highlights since the publication of the 2020 half-year results, on 27 July 2020
Change in passenger traffic over the first 9 months of 2020:
u Group traffic:
(1) Direct or indirect
(2) Stake-weighted total traffic is calculated using the following method: traffic at the airports that are fully integrated is recognized at 100%, while the traffic from the other airports is accounted for pro rata to Groupe ADP's percentage holding. Traffic of all TAV Airports' airports is taken into account at 100% in accordance with TAV Airports' financial communication practices
(3) Change in 2020 stake-weighted traffic compared to 2019 stake-weighted traffic
(4) From July 2020, the results of the GMR Airports group are accounted for by the equity method at 49% from July 2020, following the acquisition by Groupe ADP of a second stake bringing the total stakeholding to 49% of the share capital of GMR Airports (see the press releases of 20 and 26 February, and 7 July 2020). As a reminder, GMR holds 64% of New Delhi airport, 63% of Hyderabad airport and 40% of Cebu airport
(5) Turkey (Milas-Bodrum & Gazipaşa), Croatia (Zagreb), Saudi Arabia (Medinah), Tunisia (Monastir & Enfidha), Georgia (Tbilissi & Batumi), and Macedonia (Skopje & Ohrid)
u Traffic at Paris Aéroport
Over the first 9 months of 2020, Paris Aéroport passenger traffic has seen the decrease of 66.3%, with a total of 27.8 million passengers.
The number of connecting passengers decreased by 65.4%. The connecting rate stood at 23.4%, up by 0.9 point compared to the first 9 months of 2019. The aircraft load factor was down by 14.6 points, at 72.1%. The number of air traffic movements (236,433) was down by 56.8%.
Groupe ADP announces the extension of the HubLink alliance with Royal Schiphol Group
Aéroports de Paris and NV Luchthaven Schiphol (Royal Schiphol Group), which is the operator for Amsterdam Schiphol airport, created at the end of 2008, for 12 years, a long-term industrial cooperation and cross-equity investment agreement for 8% of the share capital. The alliance has been named “HubLink”.
The current context of uncertainty resulting from the crisis linked to CoVid-19 makes it necessary to postpone the decision on the future of this alliance.
Aéroports de Paris, after authorization from its Board of Directors, announces having soon to sign an amendment to extend this alliance for a duration of one year, until November 30th, 2021.
Forecasts
2020 Forecasts
Agenda
A conference call will be held today at 8:30 am (Paris time) and will be webcasted live on our website. The presentation will be available on the website: finance.groupeadp.fr
Disclaimer
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 23 March 2020 under D.20-0159, retrievable online on the AMF website www.amf-france.org or Aéroports de Paris website www.parisaeroports.fr .
Aéroports de Paris do not commit and shall not update forecasted information contained in the document to reflect facts and posterior circumstances to the presentation date.
Investor Relations contact
Audrey Arnoux: + 33 6 61 27 07 39 / + 33 1 74 25 70 64 – invest@adp.fr
Press contact
Lola Bourget: + 33 1 74 25 23 23
Investor Relations: Audrey Arnoux, Head of Investor Relations +33 6 61 27 07 39 - invest@adp.fr
Press contact: Lola Bourget, 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 2019, the group handled through its brand Paris Aéroport more than 108 million passengers and 2.2 million metric tons of freight and mail at Paris-Charles de Gaulle and Paris-Orly, and more than 110 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 2019, group revenue stood at €4,700 million and net income at €588 million.
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
This document is voluntarily made by Aéroports de Paris in compliance with the AMF recommendation. See AMF recommandation - Guide de l'information permanente et de la gestion de l'information privilégiée– DOC-2016-08
Group traffic @100%. Group traffic @100% does not take into account the traffic of Istanbul Atatürk Airport in 2019 and includes the traffic of Delhi International Airport Limited (DIAL), Hyderabad International Airport Limited (GHIAL) and Mactan-Cebu International Airport as of 1 March 2020 (on current and future shareholdings in GMR Airports see press releases of 20 and 26 February, and 7 July 2020). For information, taking into account the traffic of Istanbul Atatürk Airport in 2019, the group's traffic @100% is down by -64.8% over the first 9 month of 2020 compared to the first 9 months of 2019. Excluding the integration of GMR Airports as of 1 March 2020, the decrease in group traffic would be -68.3% over the first 9 month of 2020 compared to the first 9 months of 2019
Unless otherwise stated, percentages are comparing the first 9 months of 2020 data to 2019 comparable data
Group traffic @100%. Group traffic @100% does not take into account the traffic of Istanbul Atatürk Airport in 2019 and includes the traffic of Delhi International Airport Limited (DIAL), Hyderabad International Airport Limited (GHIAL) and Mactan-Cebu International Airport as of 1 March 2020 (on current and future shareholdings in GMR Airports see press releases of 20 and 26 February, and 7 July 2020). For information, taking into account the traffic of Istanbul Atatürk Airport in 2019, the group's traffic @100% is down by -64.8% over the first 9 month of 2020 compared to the first 9 months of 2019. Excluding the integration of GMR Airports as of 1 March 2020, the decrease in group traffic would be -68.3% over the first 9 month of 2020 compared to the first 9 months of 2019
Sources: TARMAC for the traffic of the period between 1 and 12 October 2020, and SARIA for the traffic of the period between 13 and 20 October 2020
See the H1 2020 results financial release published on 27 July 2020
See chapter 8 of the 2019 Universal Registration Document, filled on 23 March 2020
Sales in airside shops divided by the number of departing passengers (Sales/PAX)
Generated with third parties (outside the Group)
Attachment
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