Aéroports de Paris SA - "2025 Pioneers": the new strategic roadmap
of Groupe ADP based on a 2022-2025 financial trajectory
FINANCIAL RELEASE
February 16th, 2022
Aéroports de Paris
SA"2025
Pioneers": the
2022-2025 strategic roadmap of
Groupe ADPto
build a new sustainable airport
model
Groupe ADP has adopted a 2022-2025 strategic
roadmap to build the foundation of a new airport model geared
towards sustainability and performance, in line with societal and
environmental expectations. This strategic roadmap is associated to
a financial trajectory.
In this long-term vision, the group wishes to
make its airports multimodal and energy hubs designed and operated
in a sustainable way. It aims at excellence in
hospitality and fluidity for its passenger customers and
operational and environmental performance for its airline
customers. Finally, it develops a multi-local approach to a culture
of innovation and responsibility by placing its action at the heart
of the regions in which it operates.
The "2025 Pioneers" strategic roadmap is a first
step in this long-term transformation by defining the priority
projects and actions for the period 2022-2025. It proposes 20
objectives1 for 2025, divided into 3 strategic priorities:
- An industrial ambition: One
ambition, "imagining the sustainable airport of tomorrow"
- A multi-local approach: One Group,
"build a global, integrated and responsible group"
- A collective dynamic: Shared
dynamics, "innovate, support and empower"
The presentation of this strategic roadmap is
available at the following link: Investors day.
At the heart of the industrial transformation
initiated for 2025 Pioneers is the evolution of airports towards
multimodal and energies hubs:
- which will no longer be a place to
fly, but a place where one benefits from renewed connectivity,
offering them a choice between different modes of travel (long and
short-distance rail, bus, soft mobility, etc.), and where rail-air
connections will account for a growing share of the development of
Groupe ADP's hubs
- which will host a diversification
of our energy activities and the deployment of new clean energies:
biomass, green electricity, sustainable aviation fuels,
hydrogen;
- which will see existing
infrastructures densified and the capacities of stations and
multimodal hubs extended, using new innovative and environmentally
friendly construction methods;
- which will be integrated into a
global urban planning process, by integrating into the heart
of the territories on issues of real estate, energy and
mobility.
This roadmap is set at the group level. It is
shared with TAV Airports, the GMR Airports roadmap will resonate
with 2025 Pioneers. This roadmap is based on a financial
trajectory allowing the Group to return, by 2025, to its pre-crisis
performance under the impulse of the gradual return of traffic to
2019 levels and of a strong financial discipline in operations and
investments. This consolidated financial structure should enable
the Group to guarantee a fair return to its shareholders, with
a level of dividend pay-out equivalent to the one offered before
the crisis.
A gradual return of traffic to 2019
levels
The Groupe ADP expects a gradual return of
traffic to pre-crisis levels, faster abroad than in Paris Aéroport,
given the expected dynamics of TAV Airports and GMR Airports.
It therefore assumes Group traffic in 2022 to be
between 70% and 80% of the 2019 level and expects a return to the
2019 level between 2023 and 2024.
Similarly, it assumes that Paris Aéroport's
traffic will be in 2022 between 65% and 75% of the 2019 level, in
2023 between 85% and 95%, in 2024 between 90% and 100% and in 2025
between 95% and 105%. The level of traffic reached in 2019 should
be recovered between 2024 and 2026 and exceeded from 2026
onwards.
A commercial strategy for value
creation and customer satisfaction
The Groupe ADP is launching a new retail and
hospitality concept and brand, called Extime. Extime capitalises
on all the know-how deployed for several years in the
Paris hubs and in the Group, and regroups it in a single brand,
in order to make it an instrument of international conquest,
within and outside the Groupe ADP's airports.
The preferred deployment model is that of a
franchise, with a franchisor, Aéroports de Paris, providing the
Extime franchise and its know-how to franchisees.
The value creation strategy is based on 4
levers: (i) stimulating contributing traffic via an ambitious
Aviation Marketing policy focused on the most contributing
destinations, including China; (ii) stimulating demand ahead of the
arrival at the airport via a high-performance digital
ecosystem consisting of a loyalty programme Extime Reward and
Extime Pass, as well as a marketplace www.extime.com; (iii) an
integrated business model, with the majority of operations
carried out by companies at least 50% owned by the Group, bearing
the Extime name, and being genuine champions in
their field of activity with optimised business models; and (iv) a
field of expression mainly in the airside area of airports in
places called "Boutique Terminaux", which aim for excellence in
design and architecture, in service and reception, and in the range
of brands and concepts.
This new, more comprehensive strategy for retail
and hospitality in the airside area is leading to a change in the
definition of Sales per passenger, which will now include all
retail activities in the restricted area: shops, bars and
restaurants, foreign exchange & tax refund counters, commercial
lounges, VIP reception, advertising, and other paid services2.
The objective is to move, according to this new
scope, from €25.3 per passenger in 2021 to €27.5 per passenger in
2025.
Discipline to promote a
gradual return to the financial performance of 2019
ADP SA's operating expenses are expected to
decline from €32 per passenger in 2021 to between €16 and €18 in
2024 and 2025, close to identical to the 2019 level.
Under the positive effects of the anticipated
recovery in traffic described above, the new commercial strategy
and the cost control policy, Groupe ADP expects to return by 2024
to an EBITDA3 level higher than that of 2019, i.e. €1,772 million.
The EBITDA to revenue ratio should be between 30% and 35% in 2022
and 2023 and between 35% and 45% in 2024 and 2025.
Financial discipline will be reflected in a
controlled investment policy, while ensuring that an average
investment of more than 50% is secured for the maintenance of
assets and for safety and security. Investments will average nearly
€1 billion per year between 2022 and 2025 for the Group, and will
be between 550 and 600 million euros in 2022, between 750 and 800
million euros in 2023, between 650 and 750 million euros in 2024
and between 800 and 900 million euros in 2025 for Paris
Aéroport.
Based on group traffic assumptions between 70%
and 80% and Paris Aéroport traffic between 65% and 75% in 2022
compared to 2019 levels, Groupe ADP anticipates a positive Net
Result Attributable to the Group from 2022 onwards.
Finally, from 2023 onwards, group plans a
dividend policy based on a pay-out ratio of 60% of the Group's
share of the Net Result Attributable to the Group, in line with the
pre-crisis level, supplemented by the introduction of a pay-out
floor set at €1 per share in 2023 and €3 per share in 2024 and
2025.
Groupe ADP's net debt to EBITDA ratio is
expected to decline from a range of 6x to 7x in 2022 to a range of
4.5x to 5x by 2025.
- Augustin de Romanet, Chairman and
CEO, said:
"After a period marked by an unprecedented
crisis that has had a lasting impact on the air transport sector,
Groupe ADP wishes to promote a new long-term airport model
that will create sustainable value for the company and the
territories and provide a new impulse for its employees and the
entire airport community. It intends to build its leadership by
relying on a pioneer approach to the global and structural
transformation of its activities and businesses. The "2025
Pioneers" strategic roadmap, which for the first time is
group-wide, proposes 20 objectives, testifying, by 2025, of the
implementation of the first concrete actions of this long-term
transition. This strategic roadmap is part of a financial
trajectory characterised by the gradual return of traffic to the
2019 level as well as a demanding financial discipline in terms of
cost evolution and investment control which should enable Groupe
ADP to return to its pre-crisis financial performance level by
2025. The deployment on retail and hospitality activities of the
new Extime strategy, in Paris then abroad, will be decisive in the
group's search for competitiveness thanks to the implementation of
a franchise concept that is new to the airport industry. Extime
carries a promise of excellence not only in terms of retail
performance and customer satisfaction, but also in terms of
profitability and productivity of retail operations. As a result,
Groupe ADP will be able to guarantee a fair return of its value
creation to all its shareholders."
Summary of traffic assumptions, forecasts and targets
2022-2025
These forecasts are based on the assumption of
no new restrictions or airport closures due to the health crisis,
of a stable business model in Paris, and of no abnormally high
volatility in exchange rates and inflation rates. Any negative
change in relation to these assumptions could have an adverse
effect on traffic volumes and the 2025 financial indicators.
They are also based on the consolidation scope at the end of
2021, with no assumption of developments up to 2025.
|
20224 |
2023 |
2024 |
2025 |
Group traffic5In
% of 2019 traffic |
70% - 80% |
Return to the 2019 traffic level between 2023 and 2024 |
- |
Traffic at Paris
AéroportIn % of 2019 traffic |
65% - 75% |
85% - 95% |
90% - 100% |
95% - 105% |
Return to the 2019 traffic level between 2024 and 2026,More than
100% as of 2026 |
Extime Sales / Pax
in Paris6in
euros |
- |
- |
- |
€27.5 |
ADP SA operating
expensesper passengers, in € |
- |
- |
€16 - €18 / pax |
Group EBITDA growthCompared to 2019 |
- |
- |
Return to the 2019 level, EBITDA above or equal to €1,772M |
- |
Group EBITDA margin In % of revenues |
Between 30% and 35% |
Between 35% and 40% |
Net income, attributable to the
Groupin millions of euros |
Positive |
Group investments(excl. financial
investments) |
1 billion euros per year on average between 2022 and 2025 |
ADP SA investments(excl.
financial investments, regulated, non-regulated) |
€550M – €600M |
€750M – €800M |
€650M – €750M |
€800M – €900M |
Ratio Net Financial Debt/
EBITDA |
6x – 7x |
- |
- |
4.5x – 5x |
Dividends due for the year N-1In
% of the NRAG |
- |
60% pay out rateMinimum of 1 € per share |
60% pay out rateMinimum of 3 € per share |
Summary of strategic roadmap indicators
N° |
Key Performance Indicator |
Scope |
ONE AMBITION – Imagining the sustainable
airport of tomorrow |
1 |
Make more than 80% of flights depart on time or within 15
minutes of the scheduled time |
Airports controlled within Groupe ADP |
2 |
Reduce average taxiing emissions per flight by 10%
at Paris-Orly and Paris-CDG |
|
3 |
Set a carbon budget for the life cycle of all
investment projects over €5 million |
ADP SA, TAV Airports |
4 |
Provide 50% of passengers at Paris-Orly and Paris-CDG with
biometric facilitation in their departure
journey |
|
5 |
Aim for excellence in
hospitality:- Place Paris-CDG in the top 10 of the
Skytrax ranking of the world's best airports, as well as 4 airports
in the Top 50 and 8 airports in the Top 100- Achieve an ACI/ASQ
score of 4 for passenger satisfaction |
- All of the group's airports
Airports controlled within Groupe ADP with more than 3 million
passengers |
6 |
Deploy the Extime Retail and
Hospitality concept in Paris and initiate the deployment
of the franchise in two terminals outside the Parisian
platforms |
|
7 |
Set the Parisian platforms at the best European level in terms of
train-air connection by increasing by 50% the
number of train-aircraft connecting passengers at Paris-CDG and by
doubling it at Paris-Orly |
|
8 |
Using 10% of low-carbon energy in terminals and
airside, almost doubling compared to 2019, and 40% excluding
landing and take-off |
Airports controlled within Groupe ADP with an ACA ≥ 3
in 2021 |
9 |
Open the new multimodal hub at Paris-Orly, with
the opening of the line 14 station, in 2024 and make it possible to
open or build 8 additional public transport lines to connect the
Parisian airports to the neighboring territories |
|
10 |
Preserve 25% of land for biodiversity at Paris-CDG
and 30% at Paris-Orly and Paris-Le Bourget, and set a course for
the group's airports to improve their biodiversity index by
2030 |
The 23 airports of the group committed to the Airports for trust
charter |
ONE GROUP – Building a global, integrated
and responsible group |
11 |
Stabilize the average maturity of our concession
portfolio at 30 years |
All of the group's airports under concession, excluding Paris |
12 |
Opening 100 additional international routes to
increase the connectivity of our territories |
All of the group's airports |
13 |
Develop the smartization of the Group's airports
with three airports at "full" level and 100% of the others at
"friendly" level |
Airports controlled within Groupe ADP1 with more than 4 million
passengers |
14 |
Support the generalization of continuous descent
procedures between 2023 and 2025 at Paris-CDG and Paris-Orly |
|
15 |
Promote the realization 80% of local purchases in
the Paris region, including 20% from SMEs, in compliance with
public procurement legislation |
ADP SA |
SHARED DYNAMICS – Innovate, support &
empower |
16 |
Deploy 120 experiments in societal, environmental and operational
innovations by 2025, 30 of which will leading to
industrialization |
ADP SA, TAV Airports, Hub One |
17 |
Carry out at least one employee shareholding
operation by 2025 |
ADP SA |
18 |
Include a ESG element in the
remuneration of 100% of employees |
ADP SA, TAV Airports, AIG |
19 |
Increase the number of employee civic engagement
days by a factor of five, to 5,000 over the period 2022-2025 |
ADP SA |
20 |
Educate 100% of employees on good ethical and
compliance practices |
ADP SA, TAV Airports, AIG |
Agenda
-
An analysts conference will be held on Wednesday
16th, February 2022 at
6:00 PM (CET). This
conference will be webcasted live on the following links and on
Groupe ADP's website
(https://www.parisaeroport.fr/en/group/finance):
Link to the webcast in french / Link to the
webcast in english
Phone lines:
United Kingdom:
+44 (0) 2071 928
338
France:
+33
(0)1 70 70 07 81
United States:
+1 646 741 3167
Access
codes:
French:
7038837
English:
9726517
A replay of the conference will be available on
Groupe ADP (https://www.parisaeroport.fr/en/group/finance)
-
An investor day will be held on Thursday
17th, February between
9:00 AM and 1:00 PM (CET).
Registration link
Phone lines:
United Kingdom:
+44 (0) 2071 928
338
France:
+33
(0)1 70 70 07 81
United States:
+1 646 741 3167
Access
codes:
French:
6338097
English:
5489189
-
Next thematic conferences:
-
Retail and hospitality strategy: March 18th,
2022
-
Groupe ADP's ESG strategy: March 29th, 2022
-
TAV Airports' strategy: May 18th, 2022
-
Next traffic figures
publication:
- Wednesday 16
March 2022: February 2022 traffic figures
-
Next results publication:
- Wednesday 27
April 2022: First quarter of 2022 revenue
-
Next General Meeting of the shareholders:
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 18 March 2021 under D.21
0149, 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
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 2021, the group handled through its brand Paris Aéroport
more than 41.9 million passengers and 2.1 million metric tons of
freight and mail at Paris-Charles de Gaulle and Paris-Orly,
and more than 118.1 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 2021, group revenue stood at €2,777 million
and net income at -€248 millionRegistered 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
1 See the detailed list of the 20 objectives in
the annex to this press release.2 The previous definition was sales
from airside shops divided by the number of departing passengers
(CA/Pax) in Paris.3 Revenue and other ordinary income less
purchases and operating expenses excluding depreciation/impairment
of tangible/intangible assets.4 The 2022 financial forecasts are
based on the following exchange rate assumptions: EUR/USD = 1.21,
EUR/TRY = 11.21, EUR/JOD = 0.84
and EUR/INR = 90.33.5 Group traffic from the
airports of Delhi, Hyderabad, Mactan-Cebu and Almaty from 1 January
2019.6 Extime Sales/Pax: Sales per passenger in the airside
activities: shops, bars & restaurants, foreign exchange &
tax refund counters, commercial lounges, VIP reception, advertising
and other paid services in the airside area.
- Aéroports de Paris SA - 2025 Pioneers - The 2022-2025 strategic
roadmap of Groupe ADP to build a new sustainable airport model
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