Regulatory News:
Aeroports de Paris (Pink Sheets:AEOPF) (Paris:ADP):
-- Solid revenue growth, up 9% to EUR 1,081.4 million
-- Current operating income increases 13.6% to EUR 209.2 million
-- Strong growth in net income before non-recurring items,
up 24.6% to EUR 114.5 million
-- 2007 passenger traffic forecast revised upward
to a target range of between 4% and 4.4%
-- Expansion of retail areas: an extra 2,365 sqm will be added to
the original development plan by 2008
Pierre Graff, Chairman and CEO of Aeroports de Paris, comments:
"Our first-half results are strong. With the CDGVal light train
line entering service in April and the opening of the Parisian Gallery
in June, Aeroports de Paris is pursuing its strategy of increasing
passenger handling capacity, improving service quality and developing
retail activities. For the year-end period, we are raising our
estimates of passenger traffic growth to a target range of between 4%
and 4.4%. We also announce the acceleration of our plan to expand
retail areas, with an extra 2,365 square metres added to our original
development plan by 2008."
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KEY FIGURES H1 2006(2) H1 2007 % change
In millions of euros
----------------------------- ------------------ ----------- --------
Revenues 991.8 1,081.4 +9.0%
----------------------------- ------------------ ----------- --------
EBITDA 326.3 354.0 +8.5%
----------------------------- ------------------ ----------- --------
Current operating income 184.3 209.2 +13.6%
----------------------------- ------------------ ----------- --------
Operating income 130.1 176.9 +36.0%
----------------------------- ------------------ ----------- --------
Reported net income 44.9 201.6 +349.0%
----------------------------- ------------------ ----------- --------
Net income excluding
non-recurring items (a) 91.9 114.5 +24.6%
----------------------------- ------------------ ----------- --------
*T
(a) In 2006, non-recurring items primarily consisted of
IPO-related expenses. In 2007, non-recurring items include
restructuring provisions for the ground handling segment and the
proceeds from the disposal of our stake in the Beijing airport (BCIA).
(2) 2006 figures have been retreated to be consistent with 2007
IAS 17 format
I. GROUP RESULTS
Buoyant traffic and solid revenue growth
The Group generated revenues of EUR 1,081.4 million, up 9%, thanks
to ongoing passenger traffic growth (+4.4% to nearly 41.5 million
passengers), the development of real estate business, and the strong
contribution of subsidiaries.
Current expenses increased 9.9%:
-- External services rose 9.5% to EUR 268.9 million, notably due
to the increase in sub-contracting expenses following the
rapid development of ADPi's business.
-- Purchases were up 7.8%. This increase is entirely due to
greater merchandise purchases following the expansion of SDA's
scope of business to include Paris-Orly and Paris-CDG Terminal
3 (EUR 10.9 million). Other purchases declined, especially
fuel purchases due to mild weather conditions last winter.
-- Personnel expenses rose only 4.6% to EUR 329.1 million. This
growth is primarily due to the increase in the number of
employees at subsidiaries. The number of employees at
Aeroports de Paris SA, the parent company, declined 2%
reflecting the Group's ongoing productivity efforts and the
decline in ground handling staff employed by the parent
company.
EBITDA increased 8.5% to EUR 354 million compared to H1 2006.
The current operating margin improves
Current operating income increased 13.6% to EUR 209.2 million. The
current operating margin was 19.3% of revenues, up from 18.6% in H1
2006.
Other non-current income and expenses was a negative EUR 32.3
million, mainly due to a restructuring provision of EUR 30.8 million
for the ground handling segment.
The Group generated operating income of EUR 176.9 million, up a
robust 36% compared to H1 2006, a period hit by EUR 52.7 million in
IPO-related spending.
Net finance results swung from a negative EUR 45.2 million to a
positive EUR 69.7 million, following the EUR 109.8 million capital
gain on the disposal of Beijing Capital International Airport (BCIA)
shares on 26 February 2007.
Strong increase in net income excluding non-recurring items
Reported net income was EUR 201.6 million, an increase of EUR
156.7 million over the H1 2006 figure. Restated for non-recurring
items pertaining to IPO-related expenses in H1 2006 and to the
restructuring provision for the ground handling segment and the
disposal of BCIA shares in H1 2007, net income excluding non-recurring
items increased a robust 24.6% to EUR 114.5 million.
II. OPERATIONAL INFORMATION BY SEGMENT
Traffic growth and retail business boost airport services
Revenues in the Airport Services segment increased 5.4% to EUR
872.3 million, thanks to strong growth in airport fees, bolstered by
robust passenger traffic growth and higher airport fees (+4.25% at 1
April 2007). Retail business grew at a satisfying pace (+5.6%),
notably at duty-free shops.
Current operating income for the segment increased 12.3% to EUR
222.2 million. The current operating margin improved significantly to
25.5%, up 1.6 points from the year-earlier period.
Restructuring of Ground Handling segment
Ground Handling and Related Services generated revenues of EUR
93.5 million, up 12.9% compared to H1 2006, a period hard hit by the
loss of major contracts in late 2005. Within this segment, revenues
from security services rose a strong 26.5%.
The segment posted a current operating loss of EUR 8.6 million,
compared to EUR 10.1 million in H1 2006 and EUR 7.3 million in H2
2006.
The restructuring plan for grounding handling activities that is
being negociated, aims to bring all the operations under the roof of a
single subsidiary. This plan should be implemented between 2007 and
the first half of 2009. A job management agreement signed with the
union organisations on 16 July 2007 provides for each of the 662
employees concerned to be offered an appropriate solution, with no
compulsory departures from the company. The process of notifying and
consulting the Staff Council concerning the plan to reorganise the
ground handling services business must be finalised prior to
implementation (this process will take place in September 2007). The
total cost of the plan is estimated at EUR 43.8 million, and a
provision of EUR 30.8 million was set aside in H1 2007. The remaining
EUR 13 million will be recognised at a later date as current charges
on the financial statements.
Given the progress that has been made on the restructuring plan,
Aeroports de Paris expects the ground handling activity to return to
breakeven in the year 2009.
Significant improvement in profitability in the Real Estate
segment
The Real Estate segment generated revenues of EUR 95.5m, up 10.5%
compared to H1 2006, mainly due to the indexation of leases to the
cost of construction index (up 7% since 1 January 2007) and the
growing importance of leases for new surface areas to accommodate the
West Maintenance Base for the future A380 and the Air France hub
maintenance centre at Paris-Charles de Gaulle.
Current operating profit for the segment was EUR 32.0 million, up
32.3% from the year-earlier period. The current operating margin rose
5.5 points to 33.5%. Part of this strong growth can be attributed to
the exceptional depreciation of EUR 4 million for renovation work and
the demolition of old buildings in H1 2006. Excluding this positive
basis of comparison, the operating margin improved by 1.4 points.
Rapid development of subsidiaries (Other Activities)
Other Activities generated revenues of EUR 146.6 million, up 35.1%
compared to H1 2006.
Yet current operating income declined to EUR 7.7 million, from EUR
11.1 million in the year-earlier period. The year 2006 benefited from
two factors that were not repeated in 2007: certain revenues were
transferred to the Airport Services segment, and the favourable
settlement of an export claim in 2006.
The decline in current operating income does not reflect the true
performance of our subsidiaries, which was very strong:
-- Societe de Distribution Aeroportuaire (SDA), which directly
operates shops specialising in alcohol, tobacco, perfume,
cosmetics and gourmet foods, reported an 82.2% increase in
current operating income to EUR 4.1 million, thanks to robust
sales in duty-free shops and the expansion of its scope of
business to Paris-CDG Terminal 3 and Paris-Orly as of 1
January 2007.
-- ADPi, the engineering subsidiary reported a 67% increase in
current operating income to EUR 1.4 million, thanks to
numerous new contracts, notably in Jeddah, Saudi Arabia, and
Bogota, Colombia.
-- Current operating income at Hub Telecom increased 12.2% to EUR
3.3 million thanks to the development of corporate and
consumer WiFi.
-- Lastly, current operating income at Aeroports de Paris
Management more than tripled (+266.7% to EUR 0.5 million)
after the subsidiary won two major contracts in Jeddah, Saudi
Arabia and Amman, Jordan.
BALANCE SHEET
Net debt was flat at EUR 1,872 million, with a net debt to equity
ratio of 0.66.
OUTLOOK FOR 2007
Considering the strength of passenger traffic in the first seven
months of the year, the Group is raising its full-year 2007 forecast
to a target range of between 4% and 4.4% (vs a previous range of
between 3.7% and 4.2%).
Two factors will fuel Group revenue growth:
-- The 4.25% increase in airport fees, including inflation, since
1 April 2007.
-- The expansion of the scope of business of Societe de
Distribution Aeroportuaire (SDA) to include Paris-Orly and
Paris-CDG Terminal 3 effective 1 January 2007.
Under these conditions, the Group is forecasting 2007 EBITDA
growth in line with the good performance reported in H1 2007.
AGENDA
Publication of Q3 2007 revenues: 9 November 2007
A webcast of the H1 2007 earnings presentation can be seen at the
following address:
http://www.aeroportsdeparis.fr/Adp/fr-FR/Groupe/Finances/
INTERIM FINANCIAL REPORT
The interim financial report is available on the Company's
website: http://www.aeroportsdeparis.fr/Adp/frFR/Groupe/Finances/
InformationsReglementeesAMF/.
(Due to its length, this URL may need to be copied/pasted into
your Internet browser's address field. Remove the extra space if one
exists.)
Warning concerning forward-looking statements
Forward-looking statements are included in the above press
release. They are based on data, assumptions and estimates deemed
sensible by Aeroports de Paris. They notably include information
regarding the financial condition, results of operations and business
of Aeroports de Paris. These forward-looking statements include risks,
uncertainties and may be adversely affected by known or unknown
factors, most of which cannot be controlled by Aeroports de Paris and
cannot be easily predicted. A list of risk factors can be found in the
reference document filed on April 21, 2006 with the French financial
markets authority (AMF) under the number I. 06-036. They can lead to
results substantially different from the information included in the
forward-looking statements.
APPENDIX: BREAKDOWN BY SEGMENT
AIRPORT SERVICES
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In millions of euros H1 2006 H1 2007 % change
-------------------------------------------------------------------
Revenues 827.4 872.3 5.4%
EBITDA 313.8 343.1 9.3%
Current operating income 197.8 222.2 12.3%
===================================================================
*T
GROUND HANDLING AND RELATED SERVICES
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In millions of euros H1 2006 H1 2007 % change
-------------------------------------------------------------------
Revenues 82.8 93.5 12.9%
EBITDA - 8.6 - 7.3 14.8%
Current operating loss - 10.1 - 8.6 14.8%
===================================================================
*T
REAL ESTATE
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In millions of euros H1 2006 H1 2007 % change
-------------------------------------------------------------------
Revenues 86.4 95.5 10.5%
EBITDA 42.5 47.6 12.1%
Current operating income 24.2 32.0 32.3%
===================================================================
*T
OTHER ACTIVITIES
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In millions of euros H1 2006 H1 2007 % change
-------------------------------------------------------------------
Revenues 108.5 146.6 35.1%
EBITDA 17.2 14.6 - 15.1%
Current operating income 11.1 7.7 - 30.4%
===================================================================
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Consolidated income statement
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(in thousands of euros) Notes H1 H1
2007 2006
------------------------------------------- ----- --------- ---------
Revenue 7 1,081,355 991,847
------------------------------------------- ----- --------- ---------
Other ordinary operating income 8 9,171 6,606
Own work capitalized 9 23,535 20,715
Changes in finished goods inventory 40 101
Raw materials and consumables used (67,436) (62,571)
Employee benefits costs 10 (329,075) (314,508)
Other ordinary operating expenses 11 (369,612) (320,065)
Depreciation and amortization 12 (144,755) (142,135)
Impairment of assets, net 12 2,335 3,875
Net allowances to provisions 12 3,677 402
Current operating income 209,236 184,267
------------------------------------------- ----- --------- ---------
Other operating income and expenses 13,0 (32,291) (54,120)
Operating income 176,945 130,147
------------------------------------------- ----- --------- ---------
Financial income 14 231,495 32,187
Finance expenses 14 (161,780) (77,339)
Net finance income (costs) 14 69,715 (45,152)
------------------------------------------- ----- --------- ---------
Share in earnings of associates 15,0 1,200 1,203
Income before tax 247,860 86,198
------------------------------------------- ----- --------- ---------
Income tax expense 16 (46,302) (41,308)
Net income for the period 201,558 44,890
------------------------------------------- ----- --------- ---------
Net income attributable to minority
interests - -
Net income attributable to equity holders
of the parent 201,558 44,890
------------------------------------------- ----- --------- ---------
Earnings per share (EPS) attributable to
holders of ordinary
shares of the parent:
Basic EPS (in euros) 17 2.04 0.52
Diluted EPS (in euros) 17 2.04 0.52
------------------------------------------- ----- --------- ---------
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Consolidated balance sheet
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ASSETS At At
(in thousands of euros) 30.06.2007 31.12.2006
----------------------------------------------- ---------- ----------
Intangible assets 40,277 36,714
Property, plant and equipment 5,016,020 4,838,942
Investment property 279,541 284,233
Investments in associates 30,817 20,186
Other non-current financial assets 79,260 242,045
Deferred tax assets 1,550 1,417
Non-current assets 5,447,465 5,423,537
----------------------------------------------- ---------- ----------
Inventories 9,298 7,462
Trade receivables 464,757 401,089
Other accounts receivable and prepaid expenses 104,093 115,164
Other current financial assets 60,715 84,267
Current tax assets 634 654
Cash and cash equivalents 472,093 509,188
Current assets 1,111,590 1,117,823
----------------------------------------------- ---------- ----------
TOTAL ASSETS 6,559,054 6,541,361
----------------------------------------------- ---------- ----------
----------------------------------------------- ---------- ----------
EQUITY AND LIABILITIES At At
(in thousands of euros) 30.06.2007 31.12.2006
----------------------------------------------- ---------- ----------
Share capital 296,882 296,882
Share premium 542,747 542,747
Treasury shares (1,464) -
Translation reserve (351) (200)
Fair value reserve - 70,728
Retained earnings 1,783,825 1,724,496
Net income for the period 201,558 152,136
Equity 2,823,197 2,786,789
----------------------------------------------- ---------- ----------
Non-current debt 2,218,811 2,270,411
Provisions for employee benefit obligations
(more than one year) 409,921 388,354
Other non-current provisions 234 357
Deferred tax liabilities 71,708 74,044
Other non-current liabilities 33,317 33,123
Non-current liabilities 2,733,990 2,766,289
----------------------------------------------- ---------- ----------
Trade payables 345,967 411,178
Other liabilities and deferred income 381,263 309,133
Current debt 160,089 158,286
Provisions for employee benefit obligations
(more than one year) 29,929 29,933
Other current provisions 76,343 71,475
Current tax payables 8,277 8,278
Current liabilities 1,001,867 988,283
----------------------------------------------- ---------- ----------
TOTAL EQUITY AND LIABILITIES 6,559,054 6,541,361
----------------------------------------------- ---------- ----------
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Consolidated cash flow statement
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(in thousands of euros) H1 H1
2007 2006
------------------------------------------------- --------- ---------
Operating income 176,945 130,147
Adjustment for non-cash income and expenses:
- Depreciation, amortization, impairment and net
allowances to provisions 171,184 149,770
- Capital losses (gains) on disposals 1,896 (386)
- Cost of employee benefits as part of the
employee profit-sharing offer - 33,331
- Other 559 (3,387)
Time lag in receipt of insurance payments for
Terminal 2E - 41,411
Interest expense other than cost of net debt (433) (4,225)
--------- ---------
Operating cash flow before changes in working
capital and tax 350,151 346,660
Decrease (increase) in inventories (1,778) (755)
Increase in trade and other receivables (52,281) (29,605)
Increase in trade and other payables 64,132 (8,411)
--------- ---------
Change in working capital 10,074 (38,772)
Income taxes paid (47,777) (79,803)
------------------------------------------------- --------- ---------
Cash flows from operating activities 312,448 228,085
------------------------------------------------- --------- ---------
Acquisitions of subsidiaries (net of cash
acquired) (165) (20)
Purchase of property, plant and equipment and
intangible assets (335,249) (287,119)
Acquisition of non-consolidated equity interests (1,160) (4)
Change in other financial assets (3,647) 8,322
Proceeds from sale of property, plant & equipment 5,269 117,555
Proceeds from sale of non-consolidated
investments 189,872 75
Dividends received 1,136 2
Change in debt and advances on asset acquisitions (45,187) (61,962)
------------------------------------------------- --------- ---------
Cash flows from investing activities (189,131) (223,151)
------------------------------------------------- --------- ---------
Capital grants received (repaid) in the period 477 897
Proceeds from issue of shares or other equity
instruments - 581,253
Purchase of treasury shares (net of disposals) (1,292) -
Dividends paid to shareholders of the parent
company (93,007) (63,169)
Proceeds on issuance of long-term debt 2,764 2,213
Repayment of long-term debt (4,828) (4,441)
Interest paid (115,156) (107,935)
Interest received 54,251 45,854
------------------------------------------------- --------- ---------
Cash flows from financing activities (156,791) 454,672
------------------------------------------------- --------- ---------
Change in cash and cash equivalents (33,474) 459,606
------------------------------------------------- --------- ---------
Net cash and cash equivalents at beginning of
period 503,102 381,328
Net cash and cash equivalents at end of period 469,629 840,934
------------------------------------------------- --------- ---------
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(1) Unless indicated otherwise, all the percentage mentioned in
the press release compare half-year 2007 to half-year 2006 figures
Aeroports de Paris builds, develops and manages airports including
Paris-Orly, Paris-Charles de Gaulle and Paris-Le Bourget. Aeroports de
Paris is the 2nd European airport group in terms of airport turnover
and the 1st European airport group in terms of cargo and mail.
Aeroports de Paris accommodates nearly 460 airlines, mainly the major
actors of air transport.
Benefiting from an exceptional geographical location and a major
trading area, the group's strategy is to modernize its terminal
facilities and to upgrade its quality of service. It also intends to
develop its retail and real estate business. In 2006, Aeroports de
Paris Group had a turnover of 2,076 million euros, and it handled 82,5
million passengers.
