Aéroports de Paris SA: Coronavirus Groupe ADP engages an
operational and financial optimization plan
PRESS RELEASE
16 March 2020
Aéroports de Paris SACoronavirus: Groupe
ADP engages an operational and financial optimization
plan
As foreshadowed in the press release published
on this day regarding February 2020 traffic, Groupe ADP traffic1
is, since the beginning of this leap year, stable with a total of
31.9 million of passengers on the first two months of the year
(compared to the first two months of 2019). Paris Aéroport traffic
is for its part up by 0.8% on this period with a total of 15.2
million passengers. At the end of February, the impact of the CoVid
19 outbreak on traffic thus remained limited but was amplifying in
Paris and on certain platforms abroad. Between the 1st and the 14th
of March2, the estimated drop in passenger traffic and aircraft
movements has accelerated on Parisian platforms with an estimated
evolution of -29% and -10% respectively.
This decrease comes at the end of the winter
season. Hence, it is difficult to project this decrease on the
summer season which begins next April. The global impact on 2020
will depend both on the duration of the viral episode and its
consequences on the economy in general and on the health of the air
transport in particular. It will also depend on the rate of
progress on which the activity will recover after this episode.
European or foreign authorities decisions, related notably to the
possible closure of certain destinations, will continue to have a
strong effect on platforms situation. Furthermore, the decision of
a moratorium on slots, taken by European authorities, should lead
airlines not to operate certain flights anymore without losing
their slots, thus speeding up the drop in traffic.
To date, our 2020 traffic assumptions3 are not
relevant anymore. Groupe ADP considers that it will not be possible
to reach the 2020 EBITDA targets3 if the observed trend on the
first 14 days of March should continue and, a fortiori, should it
amplify. It is furthermore too early to estimate the impacts of the
situation on the Connect 2020 plan's 2016-2020 guidances.
Given the aforementioned uncertainties and the
evolving current situation, Groupe ADP will communicate later on
adjusted forecasts and will do, in any case, a progress report on
or before the 2020 first quarter revenue release which will be on
the 23th of April.
A sensitivity analysis on the group's EBITDA has
however been conducted. The assumptions of this sensitivity
analysis are the following: (i) drop in traffic in Paris of 25%4 on
all destinations between the months of March and June; (ii) decline
in traffic on the other AIG and TAV platforms of 25% between the
months of March and July. Given past events, the traffic recovery
length assumption would be of 3 months.
On the basis of these assumptions, the loss in
Groupe ADP's EBITDA in absolute terms would be approximately of
190 M€. This includes a decrease in revenue of the Parisian
scope of 300 M€ for its aviation and retail activities.
According to these assumptions, the EBITDA margin rate5 of Groupe
ADP would remain stable overall or be down very slightly. Should
the decrease in traffic amplify, this margin rate would deteriorate
given the rigidity of some operating costs.
It is reminded that this sensitivity analysis
does not constitute a forecast nor a target; furthermore, all
estimates and prospective data contained in the present document
may prove inexact and are, either way, subject to risks,
particularly those mentioned here-above.
Groupe ADP engages an important operational and
financial optimization plan. This plan notably aims to reduce costs
endured by Groupe ADP but also to take into account the situation
of its airlines customers and its providers.
This plan firstly takes the form of
infrastructure closures on our Parisian and
international platforms which should occur within the next few
days. The aim would indeed be to concentrate the activity in some
terminals to reduce Groupe ADP and airlines operating expenses. For
Paris-Charles de Gaulle, the considered closures would concern some
of the boarding areas of the Hub's perimeter and some other
terminals (notably hall M of terminal 2E, terminal 2G and terminal
3). For Paris-Orly, the first considered closures would be at
Orly 2. For the international platforms of Groupe ADP, a
complete closure of the airports of Amman in Jordan, Ohrid in
Macedonia and Riga in Latvia. Operations with a very low traffic is
expected for the group's airports in Tunisia, in Saudi Arabia and
in Madagascar. The group's airports in Turkey and Georgia remain
open at this stage even if infrastructure optimizations are
considered to accompany the decline in traffic.
Within this context, Groupe ADP engages in an
important savings plan with the aim of reducing
current operating expenses for 2020 by 180 M€, of which 120 M€ in
Paris. Only the expenses linked to the proper running of the
company, guaranteeing the safety and security of operations and
those of its airlines and passenger customers will be engaged. At
this stage, this savings plan does not take into account the use of
partial activity which the company is considering.
Lastly, in compliance with applicable
regulation, this plan will include support
measures in favor of airlines and group's counterparties
particularly affected by the effects of the outbreak. Thus, Groupe
ADP suspends, as of today, the parking fees for aircrafts
immobilized on the Parisian platforms because of the crisis. The
rental and leasing expenses for premises located in the closed
terminals will not be due for the closure period of these
terminals. In the extent of its possibilities and taking into
account its own treasury situation, Groupe ADP will take into
consideration the difficulties endured by its customers affected by
the effects of the outbreak to adapt the payment conditions
applicable to them.
Groupe ADP disposes of a sufficient treasury to
face its current operating needs and strive to reconstitute its
available treasury to face its non-current financial commitments
and this exceptional situation.
Augustin de Romanet, Chairman and CEO of
Aéroports de Paris SA – Groupe ADP, stated: "Facing an
exceptional and global situation, Groupe ADP is mobilized to
mitigate the operational and economic consequences of this outbreak
of its platforms in Paris and abroad. An unprecedented operational
and financial plan is launched, including support measures for our
customers. Groupe ADP will keep monitoring very closely the
evolution of the situation and will adapt this action plan
accordingly. I wish to salute the spirit of responsibility of
all players of the air industry and the strong mobilization of the
group's staff".
Investor Relations: Audrey Arnoux, Head
of Investor Relations +33 1 74 25 70 64 -
invest@adp.frPress contact: Lola Bourget,
Head of Medias and Reputation Department +33 1 74 25 23
23Groupe 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 – 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.groupeadp.fr
1 Group traffic @100% without taking into account the traffic
from Istanbul Atatürk airport in 2019. For information, taking into
account the traffic from Istanbul Atatürk airport in 2019, group
traffic at 100% is down by 23.6%2 Sources: TARMAC from 1st to 10
March 2020, SARIA from 11 to 14 March 20203 See the 2019 full year
results financial release published on 10 February 20204 On a
period going from 1st to 10 of March 2020, the evolution compared
to 2019 is a drop of -24.9 % (source : TARMAC)5 EBITDA margin =
EBITDA / Revenue. As a reminder, this margin was 37.7% in 2019 (see
the 2019 full year results press release published on 10 February
2019)
- Aéroports de Paris SA - Coronavirus Groupe ADP engages an
operational and financial optimization plan
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