• Aéroport de Paris SA - 2022 Full-year results

    Источник: Nasdaq GlobeNewswire / 16 фев 2023 01:30:00   America/New_York

    FINANCIAL RELEASE

    February 16th, 2023

    Aéroports de Paris SA
    FULL-YEAR 2022 RESULTS UP SHARPLY
    ALL GROUPE ADP'S ANNUAL OBJECTIVES WERE MET OR EXCEEDED

    Strong full-year results:

    • Revenue: €4,688M, up +68.8% (+62.9% excluding the integration of Almaty airport since May 2021), driven by the strong traffic recovery, both in Paris and abroad, and the strong momentum of Retail and services activities, with Extime Paris Sales/Pax reaching €27.4 (+8.2% vs. 2021 and +16.9% vs. 2019);
      • EBITDA: €1,704M, up +€953M; EBITDA margin at 36.4% of revenue, in line with the guidance of a margin in the upper part of the 32% to 37% range;
    • Operating Income: €936M, up +€964M, of which +€75M improvement in income of equity-accounted companies;
    • Net income attributable to the Group: €516M, up +€764M;
    • Net financial debt: €7,440M, with a Net Debt to EBITDA ratio better than expected, at 4.4x EBITDA (4.6x EBITDA excl. the €420M proceeds from the disposal of the stake held by Groupe ADP in Royal Schiphol Group vs. a guidance of 5.5x to 5.0x, excl. RSG impact);
    • Dividend: proposal to distribute a dividend of 60% of the 2022 NRAG, i.e. €3.13 per share1, a level 3 times higher than the target floor of €1.00 per share.

    Unless otherwise indicated, changes are expressed in comparison with the 2021 full-year results.
    2022 forecasts and corresponding results are summarized on page 17 of this financial release.
    Key figures for the full-year 2022 are presented in a table on page 3 of this financial release.
    Operational and financial indicators definitions appear in appendix 2.

    2023-2025 trajectory adjusted:

    • Narrower traffic forecasts for 2023:
      • Paris Aéroport: between 87% and 93% of the 2019 level (previously 85% to 95%);
        • Groupe ADP: between 95% and 105% of the 2019 level;
    • Return as early as 2023 to an EBITDA at least equal to 2019 (i.e. equal or above €1,772M), i.e a year earlier than previous forecasts;
    • EBITDA margin target range unchanged for 2023 (32% to 37%) and now expected between 35% and 38% in 2024-2025 (previously 35% to 40%);
    • Extime Paris Sales Per Pax target upgraded to 29.5 euros in 2025 (previously 27.5 euros).

    2023-2025 capital allocation policy refined:

    • Capex now capped in current euros (previously in constant euros):
      • ADP SA capex: c.€900M per year on average (previously: capex program divided in a yearly schedule ranging from €650M to €900M in constant euros);
      • Group capex: c.€1,300M per year on average (previously: €1,000M per year on average in constant euros);
    • Dividend policy confirmed: payout of 60% of the NRAG, with a floor at €3.00 per share;
    • Net Debt to EBITDA decrease continuing: target lowered to c.3.5x to 4.5x EBITDA in 2025 (previously 4.5x to 5.0x), including selective international growth projects.

    Augustin de Romanet, Chairman and CEO of Groupe ADP, stated:
    "2022 is a year marked by strong growth in Groupe ADP's results. We have welcomed more than 280 million passengers in our entire airport network. In Paris, we have welcomed close to 87 million passengers, more than twice than in 2021. The strong recovery in traffic has been an operational and human challenge and a want to thank our employees and partners for their mobilization. In Paris, Retail & Services activities recorded an outstanding growth, driven by an Extime Paris Sales per Pax2 reaching 27.4 euros, up +4.0 euros (+16.9%) compared to 2019, and up 2.1 euros (+8.2%) compared to 2021.
    This solid performance translates into an EBITDA of 1,704 million euros, with an EBITDA margin of 36.4% of revenue, in the upper part of the target range. Groupe ADP returns to a solid net result, at 516 million euros, leading to propose to the General Meeting a 3.13 euros dividend per share, equivalent to a payout of 60% of the net result attributable to the group. All the 2022 targets have been met or exceeded. Based on an adjusted financial trajectory for the 2023-2025 period, Groupe ADP confirms its commitment to continue deleveraging its balance sheet, targeting a Net Debt to EBITDA ratio lowered again to 3.5x to 4.5x EBITDA in 2025 (the previous target was 4.5x to 5.0x EBITDA), including selective international growth projects.
    In 2023, all Groupe ADP teams will continue to be mobilized for the ecological transition of our industry and to welcome travelers in our airports even better. This ambition is set out in our 2025 Pioneers strategic roadmap, serving all our stakeholders."

    The 2022 Full-year results have been approved by the Board of Directors of February 15th, 2023 and examined by the Audit committee on February 9th, 2023. The audit procedures of the consolidated financial statements by the auditors have been realized. The certification report will be issued after: (i) the review of subsequent events, (ii) the finalization of the specific reviews required by French laws and regulation, (iii) the finalization of the works regarding the required presentation of the annual financial report in the ESEF standard.

    Key figures

    OPERATIONAL INDICATORS        
      2022 In % of 2019 2022/2021 Change
    Group traffic3 280.4 Mpax 80.9% +118.0MPax +72.6%
    Paris Aéroport traffic 86.7 Mpax 80.2% +44.7MPax +106.7%


      2022 2021 Var. 2022/2021 2019 Var. 2022/2019
    Extime Paris Sales / Pax4 €27.4 €25.4 +€2.1 +8.2% €23.5 +€4.0 +16.9%


    FINANCIAL RESULTS        
      2022 20215 2022/2021 Change
    Revenue €4,688M €2,777M +€1,911M +68.8%
    EBITDA €1,704M €751M +€953M +126.8%
    In % of revenue 36.4% 27.0% +9.4pts +34.4%
    Operating income from ord. activities 936M -€29M +€965M -
    Net result attributable to the group €516M -€248M +€764M -
    Net financial debt €7,440M €8,011M -€571M -7.1%
    Net financial debt/EBITDA6 4.4x 10.7x -6.3x -59.1%

    Highlights

    Successful launch of the 2025 Pioneers strategic roadmap

    In 2022, 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. (see press release of February 16th, 2022).

    The "2025 Pioneers" strategic roadmap defines the priority transformation actions for the 2022-2025 period and sets 20 objectives up to 2025, structured around 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"

    At the end of this first year of deployment, the successful launch of the 2025 Pioneers strategic roadmap materializes into the launch of concrete actions contributing to the objectives set for 2025. (See the table of the 20 objectives on page 19 of this release).

    Mandatory annual negotiations (Négociations annuelles obligatoires "NAO"): signing of a salary increase agreement for the employees of Aéroports de Paris SA

    As part of the Mandatory annual negotiations and following meetings held with the representative trade unions, the group has announced to the employees of Aéroports de Paris SA the signing of a salary increase agreement.

    This agreement notably includes, as of January 1st, 2023, a general increase of base salaries, of 2% for executives (French "cadres") and 3% for non-executives (French "non-cadres"), followed by an increase of 1% for executives as of July 1st, 2023, being an increase of at least €100 in the monthly gross base salary for all employees of Aéroports de Paris SA. The impact of these new measures is estimated at €15 million for the year 2023.

    This agreement is coupled with an exceptional value-sharing bonus, to be paid to all employees in April 2023 (already recognized in the 2022 Full-year accounts) and a commitment to initiate negotiations in 2023 regarding the remuneration structure for executive employees.

    Situation in international assets

    In 2022, some of the Group's international assets that had been weakened by the Covid crisis have continued to hold discussions with their counterparties (conceding authorities, banks…) aimed at maintaining their financial and operational viability. Depending on the situation, these assets requested concession term extensions and debt restructurings.

    Regarding TAV Airports, a two-year concession extension was obtained on June 17th, 2022 for the airports of Skopje and Ohrid, in North Macedonia.

    Regarding Santiago de Chile, a debt restructuring agreement was reached with the lenders on October 21st, 2022. In addition, initiatives towards the Chilean authorities are continuing aiming at restoring the economic balance of the project. Furthermore, the claim filed by the Group with the International Centre for Settlement of Investment Disputes (ICSID) against the Chilean State under the bilateral treaty between France and Chile on the protection of foreign investments (ICSID No. ARB/21/40 dated August 13th, 2021) is ongoing.

    Moreover, Airport International Group (AIG), the concession company for Amman airport in Jordan, is holding active discussions with its conceding authority to achieve the economic and financial rebalancing of the concession, including the negotiation of a duration extension. A restructuring of the commitments towards the lenders is being carried out at the same time.

    In Madagascar, discussions are ongoing with the lenders to amend certain conditions of the project company's loans.

    As a result, the Groupe ADP may be required to provide financial support to these airport management companies in which it is a shareholder. The support that may arise from restructuration discussions is estimation, globally, at a maximum of 20 million euros in 2023. In addition, in the event of a failure in negotiations aiming at rebalancing some of its international concessions' situation, the group may be led to take decisions, which could go as far as withdrawing from the project.

    Groupe ADP's 2022 full-year results presentation

    2022 Full-year consolidated accounts

    (in millions of euros) 2022 2021 2022/2021
    Revenue 4,688 2,777 +€1,911M
    EBITDA 1,704 751 +€953M
    EBITDA / Revenue 36.4% 27.0% +9,4pts
    Operating income from ordinary activities 936 (29) +€965M
    Operating income from ordinary activities / Revenue 20.0% -1.0% +21,0pts
    Operating income 988 (20) +1,008M
    Financial result (224) (218) -6M
    Net income attributable to the Group 516 (248) +764M

    Revenue

    (in millions of euros) 2022 20217 2022/2021
    Revenue 4,688 2,777 +€1,911M
    Aviation 1,675 1,028 +€647M
    Retail and services 1,442 825 +€617M
    of which Extime Duty Free Paris (ex. SDA) 631 311 +€320M
    of which Relay@ADP 95 36 +€59M
    Real estate 296 278 +€18M
    International and airport developments 1,361 726 +€635M
    of which TAV Airports 1,048 518 +€530M
    of which AIG 263 159 +€104M
    Other activities 166 170 -€4M
    Inter-sector eliminations (252) (250) -€2M

    Groupe ADP's consolidated revenue stood at 4,688 million euros in 2022, up +1,911 million euros compared to 2021, mainly due to the positive effect of traffic recovery on:

    • The revenue of aviation activities in Paris, up +647 million euros, at 1,675 million euros and of the Retail and Services segment in Paris, up +617 million euros, at 1,442 million euros;
    • The revenue of TAV Airports, which reached 1,048 million euros, up +530 million euros. This revenue includes the one of Almaty airport management company in Kazakhstan, for 334 million euros in 2022, while 105 million euros of revenue had been accounted for the period of May to December 2021;
    • The revenue of AIG, up +104 million euros, at 263 million euros.

    The amount of inter-sector eliminations stood at 252 million euros over 2022, compared to 250 million euro over 2021.

    EBITDA

    (in millions of euros) 2022 20218 2022/2021
    Revenue 4,688 2,777 +€1,911M
    Operating expenses (3,071) (2,182) -€889M
    Consumables (755) (383) -€372M
    External services (1,106) (789) -€317M
    Employee benefit costs (862) (739) -€123M
    Taxes other than income taxes (233) (195) -€38M
    Other operating expenses (114) (77) -€37M
    Other incomes and expenses 87 156 -€69M
    EBITDA 1,704 751 +€953M
    EBITDA/Revenue 36.4% 27.0% +9.4pts

    Group operating expenses stood at 3,071 million euros over 2022, up +889 million euros (+40.7%). Operating expenses are evolving slower than revenue (+68.8%), driving the EBITDA margin up 9.3 points, at 36.4% in 2022. The effect of the increase of Energy prices observed at the European level had not significant impact of group expenses, ADP SA having contractually secured from 2020, the purchase price of its electricity and gas consumption until December 2023.

    In 2022, electricity and gas expenses are up +38.0%, representing c.2% of operating expenses, a stable portion compared to 2021. Aéroports de Paris is currently working on the elaboration of the new energy purchase policy which will cover the needs of the years 2024 and beyond.

    Overall, the impact of inflation on operating expenses of ADP SA has been limited so far, most of the contracts signed with providers including price increase clauses that are not directly linked to inflation or that include fixed prices.

    The distribution of the group's operating expenses was as follows:

    • Consumables stood at 755 million euros, up +372 million euros, mainly due to:
      • The increase of 190 million euros for TAV Airports, of which 137 million are due to the full consolidation of the Almaty airport in Kazakhstan management company in TAV Airports' accounts since May 2021;
      • The increase of 148 million euros at the retail subsidiaries (Extime Duty Free Paris and Relay@ADP) due to the mechanical increase in costs in line with the increase in revenues.

    • External services stood at 1,106 million euros, up 317 million euros, due to:
      • The increase in expenses related to subcontracting for +140 million euros, in particular in safety, due to the traffic recovery and the reopening of the infrastructures in Paris that were still closed in 2021;
      • The increase in expenses related to other services and external expenses for +139 million euros, in particular because of the mechanical increase in the concession rent in Amman for +57 million euros, due to the increase in revenue of AIG.
    • Employee benefits costs stood at 862 million euros, up 123 million euros. They include:
      • An increase in employee benefits costs of TAV Airports for 79 million euros, due to increase of salaries in Turkey in 2022 compared to 2021 and the effect of full consolidation of Almaty since May 2021;
      • An increase in employee benefits costs of retail subsidiaries at Paris (Extime Duty Free Paris & Relay@ADP) for 26 million euros;
      • The 20 million euros impact relating to, on the one hand, ADP SA's employees salary increases effective since July 1st, 20229, and on the other hand, exceptional value-sharing bonuses paid in November 2022 and to be paid in April 2023, offset by the reversal of a 20 million euros provision for employee benefits (related to the termination of the defined benefit pension plan, referred to as "article 39").

    • Taxes other than income taxes stood at 233 million euros, up +38 million euros, due to the increase of tax expense related to the increase in security activities, linked to traffic recovery, and the increase of the CET10 expense, linked the added value increase, partially offset by property tax rebates linked to infrastructure closures in Paris, mainly in 2020;
    • Other operating expenses stood at 114 million euros, up +37 million euros.

    Other income and expenses represented a net product of 87 million euros, down -69 million euros compared to 2021, the unfavorable base effect related to the return to full ownership of certain buildings on the Paris platforms in 2021 for +109 million euros, partially offset by a provision reversal recorded in 2022 following an international impairment recorded in 2021.

    Over 2022, the group's consolidated EBITDA stood at 1,704 million euros, up +953 million euros.

    Net result attributable to the Group

    (in millions of euros) 2022 202111 2022/2021
    EBITDA 1,704 751 +€953M
    Amortisation and impairment of tangible and intangible assets (782) (719) -€63M
    Share of profit or loss in associates and joint ventures(2) 14 (61) +€75M
    Operating income from ordinary activities 936 (29) +€965M
    Other operating income and expenses 52 9 +€43M
    Operating income 988 (20) +€1,008M
    Financial income (224) (218) -€6M
    Income before tax 764 (238) +€1,002M
    Income tax expense (172) (8) -€164M
    Net income from continuing operations 592 (247) +€839M
    Net income from discontinued operations (1) (1) +€0M
    Net income 591 (248) +€839M
    Net income attributable to non-controlling interests (75) 0 -€75M
    Net income attributable to the Group 516 (248) +€764M

    Operating income from ordinary activities stood at -936 million euros, up +965 million euros, driven by the EBITDA increase for +953 million euros, as well as by the improvement of the results from equity-accounted companies for +75 million euros, at 14 million euros, notably due to:

    • The performance of TAV Airports' equity-accounted companies, in particular ATU and TGS, services companies respectively specialized in Duty Free and Ground Handling;
    • The reclassification of Royal Schiphol Group, whose results are not accounted for since June 30th, 2021;
    • The reclassification of Tibah Development, the company operating the Medina airport, whose results (losses) are not accounted for, only depreciation of the shareholder loan to this company are recorded in the financial result, in accordance with IAS 28.

    Operating income stood at 988 million euros, up +1,008 million euros compared to 2021, due to the increase in operating income from ordinary activities and the reversal of a provision for 56 million euros, recorded in 2020.

    Financial result stood at -224 million euros, down -6 million euros, mainly due to mainly due to the unfavorable base effect linked to the restructuration of TAV Tunisia's debt, for a net gain of 109 million euros in 2021, partially offset by the gain, for 46 million euros, from the disposal of Royal Schiphol Group stake and the decrease in the cost of gross debt for 41 million euros.

    The income tax expense stood at 172 million euros in 2022, compared to a tax expense of 8 million euros in 2021, due to the return to a positive income before tax.

    Net income stood at 591 million euros in 2022, up +839 million euros compared to 2021.

    Given all these items, net income attributable to the group is up +764 million euros compared to 2021, at 516 million euros.

    Cash and investments

    As 31 December 2022, the Groupe ADP had cash position of 2.6 billion euros. In 2022, cash is up +253 million euros due to the increase in operating cash-flows, linked to the recovery of activities, standing at 1,553 million euros and the disposal of the stake in Royal Schiphol Group for 420 million euros and despite the bond repayment in February 2022 for 400 million euros and the capital injection by TAV Airports into the new Antalya concession, in which it is a shareholder alongside Fraport.

    In view of this available cash and its forecasts for 2023, the group has liquidity that it considers satisfactory in the current sanitary and economic context and to meet its operating needs and financial commitments.

    Tangible and intangible investments stood at 695 million euros in 2022, compared to 527 million euros in 2021.

    Financial debt

    Groupe ADP's net financial debt stood at 7,440 million euros as of December 31st, 2022, compared to 8,011 million euros as of December 31st, 2021. As of December 31st, 2022, debt ratio stood at 4.4x EBITDA (4.6x EBITDA excluding the proceeds of 420 million euros from the disposal by Groupe ADP of the stake it held in Royal Schiphol Group), compared to 10.7x EBITDA at the end of 2021.

    Given the confidence of investors in the solidity of its financial model and with its long-term credit rating (A negative outlook by Standard and Poor's since March 25th, 2020, confirmed on December 21st, 2022), the Groupe ADP is taking care to ensure that, in the event of a significant deterioration in the economic and health context, it would be able to meet its commitments and have recourse to additional financing.

    Analysis by segment

    Aviation – Parisian platforms

    (in millions of euros) 2022 2021 2022/2021
    Revenue 1,675 1,028 +€647M
    Airport fees 1,004 527 +€477M
    Passenger fees 616 273 +€343M
    Landing fees 232 147 +€85M
    Parking fees 156 107 +€49M
    Ancillary fees 209 106 +€103M
    Revenue from airport safety and security services 428 365 +€63M
    Other income 34 31 +€3M
    EBITDA 499 30 +€469M
    Operating income from ordinary activities 117 (346) +€463M
    EBITDA / Revenue 29.8% 3.0% +26.8pts
    Operating income from ordinary activities / Revenue 7.0% -33.6% +40.6pts

    In 2022, revenue of aviation segment, which relates solely to the airport activities carried out by Aéroports de Paris as operator of the Parisian platforms, is up +62.9%, at 1,675 million euros. As revenue from airport safety and security are determined by the partially fixed costs of these activities, revenues are growing at a lower rate than passenger traffic.

    Revenue from airport fees (passenger fees, landing fees and aircraft parking fees) increased by +90.6%, at 1,004 million euros due to:

    • the increase of +125.4 % of the revenue from passenger fees, due to the increase in passenger traffic (+106.7%);
    • the increase of +57.7% of the revenue from landing fees, due to the increase in aircraft movements (+62.4%);
    • the increase of +46.3% of the revenue from parking fees.

    As a reminder, the average tariff increase, approved by the French Transport Regulation Authority (ART) for the 2022 tariff period, i.e. since April 1st, 2022 are 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 increases of +0.91% for landing fees and +19.9% for parking fees.

    By its decision n°2022-087 of December 8th, 2022, published on January 13th, 2023, the ART has approved the airport fees for Aéroports de Paris for the tariff period from April 1st, 2023, to March 31st, 2024. This approval translates, for Paris-Charles de Gaulle and Paris-Orly, by a tariff freeze, different measures 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.

    Revenue from ancillary fees was up +98.1%, at 209 million euros, linked to the increase in passenger traffic.

    Revenue from airport safety and security services was up +17.3%, at 428 million euros.

    Other income, mostly consisting in re-invoicing the French Air Navigation Services Division, leasing associated with the use of terminals and other work services made for third parties were stable at 34 million euros.

    EBITDA was up +469 million euros, at 499 million euros due to the increase of revenue.

    Operating income from ordinary activities was up +463 million euros, at 117 million euros in 2022, due to the EBITDA increase.

    Retail and services – Parisian platforms

    (in millions of euros) 2022 2021 2022/2021
    Revenue 1,442 825 +€617M
    Retail activities 922 428 +€494M
    Extime Duty Free Paris (ex. Société de Distribution Aéroportuaire) 631 311 +€320M
    Relay@ADP 95 36 +€59M
    Other Shops and Bars and restaurants12 119 40 +€79M
    Advertising 35 18 +€17M
    Other retail products 41 23 +€18M
    Car parks and access roads 149 90 +€59M
    Industrial services revenue 156 146 +€10M
    Rental income 140 122 +€18M
    Other income 75 39 +€36M
    EBITDA 613 245 +€368M
    Operating income from ordinary activities 475 98 +€377M
    EBITDA / Revenue 42.5% 29.7% +12.8pts
    Operating income from ordinary activities / Revenue 32.9% 11.9% +21.0pts

    In 2022, Retail and services segment revenue, which includes only Parisian activities, was up +74.8%, at 1,442 million euros.

    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.

    In 2022, revenue from retail activities was up +115.6%, at 922 million euros, including Extime Duty Free Paris (ex. Société de Distribution Aéroportuaire), up +102.8%, at 631 million euros and Relay@ADP, up +166.1%, at 95 million euros, due to the increase in traffic and the number of outlets opened compared to 2021.

    Revenue from car parks was up +65.5%, at 149 million euros.

    Revenue from industrial services (supply of electricity and water) was up +6.5%, at 156 million euros.

    Rental revenues (leasing of spaces within terminals) were up +14.3%, at 140 million euros.

    Other revenues (primarily constituted of internal services) were up +94.7%, at 140 million euros.

    EBITDA was up +368 million euros, at 613 million euros, mainly due to higher revenues from retail activities, notably Extime Duty Free Paris and Relay@ADP.

    Operating income from ordinary activities was up +377 million euros, at 475 million euros, due to the EBITDA increase.


    Real Estate - Parisian platforms

    (in millions of euros) 2022 2021 2022/2021
    Revenue 296 278 +€18M
    External revenue 249 227 +€22M
    Land 120 114 +€6M
    Buildings 89 74 +€15M
    Others 40 39 +€1M
    Internal revenue 47 50 -€3M
    EBITDA 194 294 -€100M
    Operating income from ordinary activities 124 235 -€111M
    EBITDA / Revenue 65.5% 105.7% -40.2pts
    Operating income from ordinary activities / Revenue 41.9% 85.1% -43.2pts

    In 2022, revenue from the Real Estate segment, which includes only Parisian activities stood at 296 million euros, up +6.8% compared to 2021.

    External revenue realized with third parties, stood at 249 million euros, up +9.6% compared to 2021, notably due to scope effect linked to the return in full ownership of some buildings on the Parisian platforms in 2021 and the commissioning of cargo areas in 2021, as well as the effect of indexation clauses on rents.

    EBITDA of the segment stood at 194 million euros, down 100 million euros, due to the unfavorable base effect related to the return to full ownership of some buildings on the Parisian platforms for 109 million euros in 2021.

    Operating income from ordinary activities stood at 124 million euros, down 111 million euros due to EBITDA decrease.

    International and airport developments

    (in millions of euros) 2022 202113 2022/2021
    Revenue 1,361 726 +€635M
    ADP International 296 197 +€99M
    of which AIG 263 159 +€104M
    of which ADP Ingénierie 22 30 -€8M
    TAV Airports 1,048 518 +€530M
    Société de Distribution Aéroportuaire Croatie 15 7 +€8M
    EBITDA 379 156 +€223M
    Share of profit or loss in associates and joint ventures 13 (61) +€74M
    Operating income from ordinary activities 221 (28) +€249M
    EBITDA / Revenue 27.8% 21.5% +6.3pts
    Operating income from ordinary activities / Revenue 16.2% -3.8% +20.0pts

    In 2022, revenue from the International and airport developments segment stood at 1,361 million euros, up +87.5% compared to 2021, mainly due to the increase in revenue from TAV Airports and AIG.

    AIG's revenue was up +65.1%, at 263 million 'euros, due notably to the effect of the traffic increase by +71.9% in Amman on airport fees for +86 million euros and commercial revenues for 21 million euros.

    TAV Airports' revenue was up +102.2%, at 1,048 million euros. It includes since May 2021 the revenue from Almaty airport in Kazakhstan. Excluding the integration of Almaty, TAV Airports' revenue would be up +72.6%, at 714 million euros, due to:

    • the effect of increased traffic on the revenues of the assets managed by TAV Airports, notably in Georgia, for  +39 million euros, at Izmir for +31 million euros, and at Bodrum for +16 million euros;
      • the increases of revenue of TAV Airports' service companies, notably Havas (company specialized in ground handling), for +51 million euros, due to the increase in the number of flights served, TAV  Technologies (company specialized in IT services) for +51 million euros and BTA (company specialized in bars and restaurants), for +45 million euros, due to the increase in traffic.

    In the context created by Russia's invasion of Ukraine and the international sanctions imposed on Russia, the group is monitoring the situation to assess its short, medium and long-term consequences. In 2019, traffic with Ukraine and Russia amounted to 1.4% of Paris Aéroport's total traffic, as well as to 17.1%14 of TAV Airports' total traffic, at 27.9%13 of TAV Airports' international traffic.

    In 2022, traffic at TAV Airports' Turkish airports was up +35.1% compared to 2021, amounting to 80.8% of 2019 traffic levels. Despite the impact of the conflict in Ukraine on routes with Russia and Ukraine, the recovery at TAV Airports' Turkish airports is supported by other routes, notably traffic with the United Kingdom and Germany which respectively stand at 152.8% and 108.7% of 2019 traffic, amounting to 12.9 million passengers. In addition, at Almaty, in Kazakhstan, traffic is up +18.5% compared to 2021, at 7.2 million passengers, or 112.6% of 2019 traffic. The recovery is also supported by the increase of the number of cargo flights served, resulting from the Russian airspace overflight ban.

    EBITDA of the International and airport developments segment was up +223 million euros, at 379 million euros.

    TAV Airports' EBITDA was up +174 million euros compared to 2021, at 318 million euros, linked to the increase in revenue and despite the increase in operating expenses of +358 million euros. Excluding the integration of Almaty, TAV Airports' EBITDA would be up +108 million euros, at 233 million euros.

    AIG's EBITDA was up +41 million euros compared to 2021, at 84 million euros, linked to the increase in revenue, despite the increase in operating expenses of +62 million euros, due in particular to the increase in concession rent for +57 million euros resulting from the traffic recovery.

    Operating income from ordinary activities of the segment stood at 221 million euros, up +249 million euros, due to:

    • the increase of EBITDA for +223 million euros;
    • the increase in results from equity-accounted companies, for +75 million euros, at 14 million euros, due to:
      • the performance of TAV Airports' equity-accounted companies, in particular ATU and TGS, services companies respectively specialized in Duty Free and Ground Handling, for +27 million euros;
      • the reclassification of Tibah Development, the company operating the Medina airport, whose results (losses) are not accounted for, only depreciation of the shareholder loan to this company are recorded in the financial result, in accordance with IAS 28;
      • the reclassification of Royal Schiphol Group, whose results are not accounted for since June 30th, 2021;
      • offsetting the decrease in GMR Airports' contribution, for -22 million euros, linked to the decrease in net result.

    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

    (in millions of euros) 2022 2021 2022/2021
    Products 166 170 -4M
    Hub One 161 157 +4M
    EBITDA 19 26 -8M
    Operating income from ordinary activities (1) 9 -10M
    EBITDA / Products 11.6% 15.3% -3.7pts
    Operating income from ordinary activities / Products -0.3% 5.3% -5.6pts

    In 2022, products from the other activities segment stood at 166 million euros, down -3.3% compared to 2021, despite the increase in revenue for Hub One by 4 million euros, at 161 million euros.

    EBITDA is down -28.7% compared to 2021, at 19 million euros.

    Operating income from ordinary activities is down 10 million euros compared to 2021, at -1 million euros.

    Evolution of traffic in 2022

    Group traffic15:

     

          		2022
    Passengers 22/21 Change Recovery
    vs. 2019
    Paris-CDG 57,474,033 +119.4% 75.5%
    Paris-Orly 29,187,269 +85.6% 91.6%
    Total Paris Aéroport 86,661,302 +106.7% 80.2%
    Antalya 31,210,119 +41.8% 87.5%
    Almaty 7,230,156 +18.5% 112.6%
    Ankara 8,644,967 +23.0% 62.9%
    Izmir 9,837,110 +30.0% 79.6%
    Bodrum 3,904,083 +34.2% 90.0%
    Gazipaşa 705,440 +21.5% 65.0%
    Medina 6,340,684 +260.7% 75.6%
    Tunisia 1,476,131 +181.6% 48.5%
    Georgia 3,612,927 +64.9% 83.8%
    North Macedonia 2,371,423 +70.4% 88.6%
    Zagreb 3,124,605 +122.5% 90.9%
    Total TAV Airports 78,457,645 +46.7% 82.2%
    New Delhi 59,490,074 +60.2% 86.9%
    Hyderabad 19,042,499 +58.8% 85.6%
    Cebu 5,533,315 +320.2% 43.7%
    Medan 3,291,554 +134.7% 78.7%
    Total GMR Airports 87,357,442 +68.5% 81.2%
    Santiago de Chile 18,744,155 +87.2% 76.1%
    Amman 7,837,501 +71.9% 87.8%
    Other airports16 1,342,025 +114.1% 72.5%
    GROUPE ADP 280,400,070 +72.6% 80.9%

    Paris Aéroport traffic:

    In 2022, Paris Aéroport traffic is up +106.7% with a total of 86.7 million of passengers, at 80.2% of traffic in the same period in 2019.

    Geographical breakdown is as follows:

    • Traffic within mainland France is up +46.5% compared to, at 77.2% of 2019 level;
    • Traffic with the French Overseas Territories is up +54.8% compared to 2021, at 98.5% of 2019 level.
    • European traffic (excluding France) is up +119.2% compared to 2021, at 82.8% of 2019 level;
    • International traffic (excluding Europe and French Overseas Territories) is up +142.6% compared to 2021, at 76.3% of 2019 level, due to the increase of the following destinations: North America (+201.0%), Latin America (+151.5%), Middle-East (+137.8%), Asia-Pacific (+249.6%) and Africa (+96.2%).

    IMPORTANT NOTE: Since the traffic release of December and the year 2022, the geographical breakdown at Paris Aéroports 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.

      

      2022
      Share of traffic Change 22/21 Recovery
    vs. 2019
    Mainland France 14.4% +46.5% 77.2%
    French Overseas Territories 5.4% +54.8% 98.5%
    Schengen Area 36.7% +113.2% 86.6%
    EU ex. Schengen & United-Kingdom 6.1% +233.3% 76.9%
    Other Europe 2.3% +51.3% 55.4%
    Europe 45.1% +119.2% 82.8%
    Africa 12.7% +96.2% 90.8%
    North America 11.2% +201.0% 82.7%
    Latin America 3.0% +151.5% 76.7%
    Middle East 5.4% +137.8% 83.6%
    Asia-Pacific 2.7% +249.6% 33.8%
    Other International 35.0% +142.6% 76.3%
    PARIS AEROPORT 100.0% +106.7% 80.2%

    The number of connecting passengers is up +93.8%. Connecting rate stoods at 20.6%, down – 1,4 point compared to 2021. Seat load factor is up +12.3 points, at 81.9%.

    Aircraft movements at Paris Aéroport is up +62.4%, at 598,640 movements, of which 402,849 movements at Paris-Charles de Gaulle, up +61,1 %, at 80.9% of 2019 level, and 195,791 movements at Paris-Orly, up +65.1%, at 89.7% 2019 level.

    Highlights of the period since the publication of the 2022 9-month revenue, on 27 October 2022

    Unwinding process of the cross-shareholdings with Royal Schiphol Group

    It is reminded that the orderly sale process of the cross-shareholdings of 8% held respectively by Aéroports de Paris and with Royal Schiphol Group is described in the press release from February 16th, 2022.

    Groupe ADP took note of the announcement, made on November 10th, 2022, of the acquisition by Crédit Agricole Assurances, through its subsidiary Predica, of an additional stake of 2.5% of Groupe ADP capital from Royal Schiphol Group, bringing Crédit Agricole Assurances total stake in Groupe ADP at 7.73%. Besides, it is reminded that Crédit Agricole Assurances has a seat on the Board of Directors of Groupe ADP.

    Groupe ADP took note of the announcement, made on November 16th, 2022, of the acquisition by Canada Pension Plan Investment Board, of an additional stake of 1.59% of Groupe ADP capital from Royal Schiphol Group, bringing Canada Pension Plan Investment Board total stake in Groupe ADP at 5.64%.

    Royal Schiphol Group announced on December 6th, 2022, the sale of its remaining stake in Aéroports de Paris. This sale represented approximately 3.91% of Groupe ADP's capital, i.e. 3,869,859 shares. It was carried out by way of an accelerated book-building (ABB) at a price of 133 euros per share.

    On this occasion, Groupe ADP has bought back 296,882 shares, i.e. approximately 0.3 % of the share capital, at a unit price of133 euros. This share buyback, amounting to c.39.5 million euros, has been financed with Groupe ADP's available cash. It was carried out within the framework of the share buyback program authorized by the 6th resolution voted by the General Shareholders' Meeting of May 17, 2022. It is intended to cover any allocation of Groupe ADP performance shares and/or allocation of shares in the context of an employee shareholding operation.

    Following the ABB, Royal Schiphol Group no longer holds any shares in Groupe ADP. In accordance with an Exit Agreement concluded between the parties on December 1st, 2008, Royal Schiphol Group has repurchased the shares held by Groupe ADP in Royal Schiphol Group, marking the end of the process of unwinding the cross-shareholdings with Royal Schiphol Group.

    The proceeds from this transaction, received on December 21st, 2022, by Groupe ADP, amounted to c.420 million euros. They will enable Groupe ADP to selectively seize potential international development opportunities while pursuing its debt reduction path.

    Aéroports de Paris announces the implementation of its first Euro Medium Term Notes program (EMTN)

    Aéroports de Paris announces the implementation of its first Euro Medium Term Notes program (EMTN). The Base Prospectus of the Programme received the visa n°22-492 of the Autorité des marchés financiers (AMF) on December 16th, 2022. The program provides a legal framework intended to govern in advance the bond financing transactions to be carried out by Aéroports de Paris. Aéroports de Paris is currently noted A (negative perspective) by S&P Global Ratings. The program's prospectus and the documents incorporated by references are available on the Groupe ADP's website (parisaeroport.fr/en/group/finance) and the Autorité des Marchés Financiers (amf-france.org).

    TAV Airports won the tender for the renewal of the Ankara Airport concession

    TAV Airports, member of Groupe ADP, won on December 20th, 2022, the tender for the renewal of Ankara Airport concession. This success results from the auction held by the Turkish State Airports Authority (DHMI) in which TAV Airports was the highest bidder. The object of the tender is the realization of investments to increase capacity of the airport in return for the right to operate the airport for 25 years, between May 24th, 2025 and May 23rd, 2050.

    The total concession rent to DHMI is of 475 million euros (VAT excluded), of which 25% (119 million euros) are to be paid within 90 days after the signing of the concession agreement. The investment aiming at increase Ankara Airport's capacities, notably estimated at around 300 million euros, of which two thirds will be conducted between 2023 and 2026, and one third to be engaged at the latest in 2038.

    The accounts of the company will be fully consolidated into TAV Airports. The current operating rights of Ankara Airport, operated by TAV Esenboğa, a 100%-owned subsidiary of TAV Airports, member of Groupe ADP, remain unchanged until May 23rd, 2025.

    Events occurred since December 31st, 2022

    Precisions following the announcement made on Monday January 9th, 2023, by the French Competition Authority

    French Competition Authority has announced, on Monday, January 9th, 2023, the opening of an in-depth examination phase in the context of the proposed sale of by Aéroports de Paris ("Groupe ADP") of a 50% stake in Extime Food & Beverage Paris to Select Service Partner ("SSP"). In its January 10th, 2023, presse release, Groupe ADP specified that the joint venture model is commonly used by many airports around the world, and that the Groupe ADP itself has been using it for more than a decade. By relying on the expertise of an industrial partner, this model has contributed to the development of the Group's various retail and food & beverage activities. In this context, Groupe ADP had launched a call for tenders in April 2021 to seek a co-shareholder in Extime Food & Beverage Paris. Select Service Partner (SSP) was chosen at the end of this procedure with the aim of acquiring, subject to the authorization of the competition authority, 50% of the capital of Extime Food & Beverage Paris along Aéroports de Paris (see press release of October 25, 2021).

    During this process, the food and beverage activities in Paris will continue to be operated not only through Extime Food & Beverage Paris, operating c.30 sales points in Paris Charles de Gaulle and Paris-Orly Airports, but also by other operators, including EPIGO joint-venture implemented in 2016. In the meantime, Groupe ADP and its partner SPP will continue to discuss with the Authority concerning the elements demonstrating the expected effects of the transaction for passengers and the benefits that will result in terms of pricing management and quality of service. As reminded by the French Competition Authority in its press release, the opening of this procedure does not presume the existence of possible competition problems, nor the outcome of this procedure. In any event, should this project not be implemented in the form envisaged here, Groupe ADP will retain full control of its commercial system in order to adapt it to passenger demand and contribute to the achievement of its profitable growth objectives.

    2022 targets achievement

      2022 Forecasts
    as established
    on 16 February 202217     		2022 Forecasts on
    27 July 202218     		2022 Forecasts on
    27 October 202219     		Achievement of targets on
    31 December 2022
    Group traffic20
    In% of 2019 traffic     		70%-80% 74%-84% 77%-83%  ✔️
    Traffic recovery at
    80.9% of 2019
    Traffic at Paris Aéroport
    In% of 2019 traffic     		65%-75% 72%-82% 78%-82%  ✔️
    Traffic recovery at
    80.2% of 2019
    Group EBITDA margin
    In % of revenue     		30%-35% 32%-37% >34.5%  ✔️
    EBITDA Margin at 36.4%
    Net income, attributable to the Group
    in millions of euros     		Positive Positive Positive  ✔️
    Net income attributable to the group positive at €516M
    Group investments
    (ADP SA and subsidiaries)21
    (excl. financial investments)     		1 billion euros
    per year on average
    between 2022 and 2025     		1 billion euros
    per year on average
    between 2022 and 2025     		1 billion euros
    per year on average
    between 2022 and 2025     		-
    695 million euros of investments in 2022
    ADP SA Investissements21
    (excl. financial investments, regulated / non-regulated)     		€550M – €600M €550M – €600M €500M – €550M  -
    497 million euros of investments in 2022
    Net Financial
    Debt/ EBITDA Ratio22     		6.0x€–7.0x 5.5x–6.5x 5.0x-5.5x  ✔️
    4.6x 22
    4.4x incl. RSG proceeds
    Dividend policy
    In % of NRAG     		60% payout ratio
    Floor at €1/share
    (distribution in 2023)     		60% payout ratio
    Floor at €1/share
    (distribution in 2023)     		60% payout ratio
    Floor at €1/share
    (distribution in 2023)     		 ✔️
    Proposal of a €3.13 dividend being 60% of net income attributable to the group23

    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.

    Based on the passengers' traffic and the results recorded in 2022, the salary increases measures from 2023 as well as the evolution of the macroeconomic context (foreign exchanges rates, inflation, energy prices), Groupe ADP refined its traffic assumptions in Paris in 2023 and adjusts some 2023-2025 forecasts and targets.

    The updated targets are market in blue in the following table

    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

      2023 2024 2025
    Group traffic24
    In % of 2019 traffic

          		95%-105% - -
    Back to 2019 level between 2023 and 2024
    Traffic at Paris Aéroport
    In % of 2019 traffic

          		87%-93%
    Previously: 85%-95%     		90%-100% 95%-105%
    Back to 2019 level between 2024 and 2026,
    above 2019 level from 2026
    Extime Paris Sales / Pax25
    In euros     		- - €29.5
    previously: €27.5
    ADP SA operating expenses
    per passenger, in €     		- €17-€20/pax
    previously: €16-€18/pax
    Group EBITDA growth
    Compared to 2019     		At least equal to
    the 2019 EBITDA
    (i.e. ≥ €1,772M)
    Previously: return to 2019 level expected in 2024     		- -
    Group EBITDA margin
    In % of revenue     		32% to 37% 35% to 38%
    Previously: 35% to 40%
    Net income, attributable to the Group
    in millions of euros     		Positive
    Group investments
    (excl. financial investments)     		c.1,300 million euros per year on average between 2023 and 2025, in current euros
    Previously: 1,000 million euros per year on average between 2022 and 2025 (in constant euros)
    ADP SA investments
    (excl. financial investments, regulated and non-regulated)

          		c.900 million euros per year on average between 2023 and 2025, in current euros
    Previously: €750M - €800M
    in constant euros     		Previously: €650M - €750M
    in constant euros     		Previously: €800M - €900M
    in constant euros
    Net Financial Debt/ EBITDA ratio
    incl. Selective international growth     		- - 3.5x – 4.5x
    Previously: 4.5x – 5.0x
    Dividends
    In % of the NRAG
    due for the year N, paid in N+1

          		60% pay out rate
    Minimum of €3 per share

    Follow up of the 2025 Pioneers strategic roadmap indicators

    The following table summarizes and illustrates the 2022 dynamic for the deployment of actions aiming for the 2025 objective.

    Legend:
      The blue bars symbolize the deployment dynamics of the identified actions.
    Greater number of bars indicates greater momentum.


    N° Key performance indicator
    and 2025 objective     		Scope Deployment Dynamics
    in 2022
    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 Paris-Orly, 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 Paris-Orly, Paris-CDG  
    5

     

          		Aim for excellence in hospitality

          		   
    •  Place Paris-CDG n 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 All Groupe ADP's airports  
    • Achieve an ACI/ASQ score of 4 for passenger satisfaction Airports controlled,
    with traffic > 3m pax     		 
    6 Deploy the Extime Retail and Hospitality concept in Paris and initiate the deployment of the franchise in two terminals outside the Parisian platforms Paris & International  
    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 Paris Airports  
    8 Using 10% of low-carbon energy in terminals and airside, almost doubling compared to 2019, and 40% excluding landing and take-off Controlled Airports and with 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 Paris Airports  
    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 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 airports under concession (excl. Paris)  
    12 Opening 100 additional international routes to increase the connectivity of our territories All 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,
    with traffic > 4m pax     		 
    14 Support the generalization of continuous descent procedures between 2023 and 2025 at Paris-CDG and Paris-Orly Paris-Orly, Paris-CDG  

     
    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  

    The successful start of the "2025 Pioneers" roadmap is illustrated by several examples of actions whose deployment began in 2022 and whose first observed results are contributing to the achievement of the objective set for 2025.

    One Ambition - Imagining the sustainable airport of tomorrow

    The strategic axis One Ambition aims for (i) excellence and sustainability of operational and construction methods, (ii) being innovative in hospitality, and (iii) Developing the offer of multi-global connections.

    • The work carried out in 2022 will enable the implementation, from 2023 onwards, of a punctuality management system for aircraft at the Paris airports. It will be organized in coordination with the various stakeholders, in particular the airlines, with the establishment of a Punctuality Committee that will decide, if necessary, on corrective actions to be deployed as part of a continuous improvement process [KPI 1]
    • In 2022, the group launched work on the development of a tool to budget the carbon impact of investment projects, initially tested at its Paris hubs (in 2023) and intended to be extended to TAV's airports (in 2024) for widespread use in 2025. The emissions taken into account in this tool are those linked to construction, maintenance or renovation, heating and cooling energy consumption, electricity consumption and demolition of structures.[KPI 3]
    • The latest World Airport Awards rankings, based on a worldwide passenger satisfaction survey conducted by the independent British organization Skytrax, were unveiled on June 23, 2022. Paris-Charles de Gaulle was voted "Best European Airport" and is now ranked 6th in the Top 100 best airports in the world (up 9 places). Paris-Orly moved up 27 places to 46th place worldwide. 3 airports belonging to the group's international network are still in the top 100 worldwide: Delhi, Hyderabad and Medina. [KPI 5]
    • After several months of modernization work, Terminal 1 reopened its doors to passengers on December 5, 2022. Closed since March 30, 2020 due to the Covid crisis, its reopening is accompanied by the unveiling of a brand new nodal building and a new, innovative passenger pathway, which fully embody Groupe ADP's quality of service and hospitality requirements. The new boarding lounge is a concept of the Groupe ADP's hospitality brand, Extime. Designed on a human scale, it guarantees a maximum journey time of 6 minutes from the end of security checks to the boarding gate. In 2023, the group aims to deploy the Extime brand in Terminal 2 link B-D as well as its marketplace and loyalty program (www.extime.com). [KPI 6]
    • Several infrastructure projects to facilitate access to the Paris airports are under development and will continue in 2023: work on the Paris-Orly multimodal station, work on the CDG Express tunnel, feasibility studies for the creation of three bus lines from Paris-CDG serving the Val d'Oise department, as well as the signing of the agreement for the Roissy-Picardie line. [KPI 7]

    One Group - Building a global, integrated and responsible Group

    The strategic axis One Group aims for (i) consolidating the group’s network (ii) Mobilising and federating expertise to multiply it and (iii) building on strong local roots, respectful of diversity.

    • In 2022, the average maturity of the concession portfolio is 32 years. The renewal of the Ankara airport concession won by TAV Airports on December 20, 2022, to increase the capacity of this airport in exchange for the right to operate it until May 2050, contributes to the objective of stability in the maturity of the portfolio. [KPI 11]
    • 300 international routes were opened or reopened in 2022, and 40 routes were closed. Thus, the group has added 260 routes in the past year [KPI 12].
    • In order to increase the proportion of purchases made with local companies, including small companies, studies were carried out in 2022 to ensure that calls for tenders of less than 100,000 euros are more easily directed towards the smallest companies, as well as towards companies located within a radius of less than 150 km from Paris [KPI 15]

    Shared Dynamics - Innovate, support and empower

    The strategic axis Shared dynamics aims for (i) promoting an innovative and agile approach in our projects, (ii) Attracting and retaining talents and (iii) developing a culture of responsibility promoting civic engagement of employees.

    • In 2022, Groupe ADP experimented with 86 innovation projects, six of which were the subject of industrialization work, including [KPI 16]:
      • vertiports for flying cabs: March 21, 2022 saw the inauguration of the first piloted flight tests of Volocopter's e-VTOL (Electric Vertical Take-Off and Landing) on the experimental zone dedicated to new aerial mobilities at the Pontoise Cormeilles-en-Vexin airfield. The vertiport model currently being designed meets the challenges of a more sustainable development of our infrastructures as well as the challenges of modularity, agility and adaptability in an airport context that is restrictive in terms of space and air integration, and a dynamic market with a notable growth trend after 2030.
      • Low carbon impact urban cool islands at Paris-Orly: following the redevelopment of the Orly 4 drop-off point, the first stages of the greening and development of the Orly 4 forecourt with the installation of green corollas by the start-up Urban Canopee have been visible since the end of 2022. The aim of this project is to create pedestrian walkways with pergolas to combat urban heat islands.
    • On December 6, 2022, Groupe ADP bought back 296,882 of its own shares (c. 0.3% of the share capital) at a unit price of133 euros. This share buyback was carried out within the framework of the share buyback program authorized by the 6th resolution voted by the General Shareholders' Meeting of May 17, 2022. It is intended to cover any allocation of Groupe ADP performance shares and/or allocation of shares in the context of an employee shareholding operation. [KPI 17]
    • Signed on June 13, 2022 by the unanimous agreement of the representative trade unions, the profit-sharing agreement set up by the group for the employees of ADP SA covers a three-year period from 2022 to 2024. The payment of the profit-sharing bonus is conditional on the achievement of five objectives linked to the Pioneers 2025 strategic plan. The objectives relate to improving economic performance (EBITDA/Group revenue ratio), quality of service (departing passenger satisfaction rating) and corporate social responsibility (number of days of civic engagement carried out by employees during their working hours, reduction of CO2 emissions, rate of completion of ethics and compliance training by employees). This collective performance incentive agreement is unprecedented, at ADP SA in the importance it gives to ESG criteria. [KPI 18]
    • Groupe ADP has established a partnership agreement with the city of Wissous (Paris Aera) to offer skills sponsorship to Paris-Orly employees (up to 5 days per year through the ADP Foundation) with the aim of working on fauna and flora inventories, on the city's ecological management plan and on its biodiversity strategy. For the first time, Groupe ADP also organized the "Month of Civic Engagement", which took place in November 2022, with collective actions offered to employees around the issues of the environment, education and professional integration: nearly 200 employees were involved in this event. [KPI 19]
    • In 2022, c. 90% of ADP SA's employees have received training in good ethical practices and compliance. [KPI 20]

    Next events

    • A conference call (audiocast in english) will be held on Thursday 16 February 2023 at 10:00 am (CET). The presentation can be follow in live at the followings links, which are also posted on the Groupe ADP website:

    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

    • Next traffic figures publication: Wednesday 15 March 2023 – February 2023 traffic figures 
    • Next results publication: Wednesday 26 April 2023 – First quarter of 2023 revenue
    • Next thematic conferences:
      • Thematic conference Extime & Terminal 1 visit: 5 April 2023
      • Thematic conference GMR Airports: May/June 2023
      • Thematic conference Real estate: September/October 2023

    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.

    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 - Groupe ADP (parisaeroport.fr)

    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 – 2022 consolidated financial statement

    2022 consolidated income statement

    (in millions of euros) 2022 2021
    Revenue 4,688 2,777
    Other operating income 55 156
    Consumables (755) (383)
    Personnel costs (862) (739)
    Other operating expenses (1,455) (1,061)
    Net allowances to provisions and Impairment of receivables 33 1
    EBITDA 1,704 751
    EBITDA/Revenue 36.4% 27.0%
    Amortisation, depreciation and impairment of tangible and intangible assets net of reversals (782) (719)
    Share of profit or loss in associates and joint ventures 14 (61)
    Operating income from ordinary activities 936 (29)
    Other operating income and expenses 52 9
    Operating income 988 (20)
    Financial income 617 393
    Financial expenses (841) (611)
    Financial income (224) (218)
    Income before tax 764 (238)
    Income tax expense (172) (9)
    Net results from continuing activities 592 (247)
    Net results from discontinued activities (1) (1)
    Net income 591 (248)
    Net income attributable to the Group 516 (248)
    Net income attributable to non-controlling interests 75 -
    Earnings per share attributable to owners of the parent company    
    Basic earnings per share (in €) 5.22 (2.50)
    Diluted earnings per share (in €) 5.22 (2.50)
    Earnings per share from continuing activities attributable to the Group    
    Basic earnings per share (in €) 5.22 (2.50)
    Diluted earnings per share (in €) 5.22 (2.50)


    Consolidated balance sheet as of 31 December 2022

    (in millions of euros) As of 31/12/2022 As of 31/12/2021
    Intangible assets 3,004 3,007
    Property, plant and equipment 8,253 8,181
    Investment property 621 614
    Investments in associates 1,879 1,583
    Other non-current financial assets 668 972
    Deferred tax assets 42 26
    Non-current assets 14,467 14,383
    Inventories 133 84
    Contract assets 4 9
    Trade receivables 938 827
    Other receivables and prepaid expenses 307 298
    Other current financial assets 237 193
    Current tax assets 121 179
    Cash and cash equivalents 2,631 2,379
    Current assets 4,371 3,969
    Assets held for sales 7 10
    Total assets 18,845 18,362


    (in millions of euros) As of 31/12/2022 As of 31/12/2021
    Share capital 297 297
    Share premium 543 543
    Treasury shares (40) (1)
    Retained earnings 3,408 2,936
    Other equity items (183) (259)
    Shareholders' equity - Group share 4,025 3,516
    Non-controlling interests 830 660
    Shareholders' equity 4,855 4,176
    Non-current debt 8,763 9,144
    Provisions for employee benefit obligations (more than one year) 386 513
    Other non-current provisions 56 136
    Deferred tax liabilities 433 300
    Other non-current liabilities 960 953
    Non-current liabilities 10,598 11,046
    Contract liabilities 2 5
    Trade payables and other payables 909 785
    Other debts and deferred income 1,171 1,008
    Current debt 1,233 1,169
    Provisions for employee benefit obligations (less than one year) 56 141
    Other current provisions 6 24
    Current tax liabilities 15 8
    Current liabilities 3,392 3,140
    Total equity and liabilities 18,845 18,362

    2022 Consolidated statement of cash flows

    (in millions of euros) 2022 2021
    Operating income 988 (20)
    Income and expense with no impact on net cash 591 650
    Net financial expense other than cost of debt (53) (36)
    Operating cash flow before change in working capital and tax 1,526 594
    Change in working capital 55 (88)
    Tax expenses (31) 56
    Impact of discontinued activities 3 195
    Cash flows from operating activities 1,553 757
    Purchase of tangible assets, intangible assets and investment property (695) (527)
    Change in debt and advances on asset acquisitions 3 (56)
    Acquisitions of subsidiaries and investments (net of cash acquired) (414) (315)
    Proceeds from sale of subsidiaries (net of cash sold) and investments 18 2
    Change in other financial assets (64) (210)
    Proceeds from sale of property, plant and equipment 6 11
    Proceeds from sale of non-consolidated investments 420 -
    Dividends received 25 40
    Cash flows from investing activities (701) (1,055)
    Proceeds from long-term debt 461 294
    Repayment of long-term debt (770) (578)
    Repayments of lease liabilities and related financial charges (20) (17)
    Capital grants received in the period 12 1
    Revenue from issue of shares or other equity instruments 19 (1)
    Net purchase/disposal of treasury shares (34) 1
    Dividends paid to non controlling interests in the subsidiaries (11) (4)
    Change in other financial liabilities (24) (56)
    Interest paid (258) (285)
    Interest received 20 39
    Impact of discontinued activities - (176)
    Cash flows from financing activities (605) (782)
    Impact of currency fluctuations 5 -
    Change in cash and cash equivalents 252 (1,080)
    Net cash and cash equivalents at beginning of the period 2,378 3,458
    Net cash and cash equivalents at end of the period 2,630 2,378
    of which Cash and cash equivalents 2,631 2,379
    of which Bank overdrafts (1) (1)

    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:

    • EBITDA is an accounting measure of the operating performance of fully consolidated Group subsidiaries. It is comprised of revenue and other ordinary income less purchases and current operating expenses excluding depreciation and impairment of property, plant and equipment and intangible assets.
    • EBITDA margin is the ratio corresponding to: EBITDA / Revenue.
    • Gross Financial debt as defined by Groupe ADP includes long-term and short-term borrowings and debts (including accrued interests and hedge of the fair value of liabilities related to these debts), debts related to the minority put option (presented in other non-current liabilities)
    • Net Financial debt as defined by Groupe ADP refers to gross financial debt less, fair value hedging derivatives, cash and cash equivalents and restricted bank balances.
    • Net Financial Debt/EBITDA Ratio is the ratio corresponding to the ratio: Net Financial Debt/EBITDA, which measures the company's ability to repay its debt.

    Operating indicators:

    • Extime Paris Sales / Pax or Extime Paris Sales per passengers is the ratio correponding to: Sales in the airside activities: shops, bars & restaurants, foreign exchange & taxe refund counters, commercial lougnes, VIP reception, advertising and other paid services in the airside area / Departing passengers at Paris Aéroport.
    • 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 for the 2019-2022 period is available on the Company's website
    Sub-group Airport Country
    Paris Aéroport

          		Paris-Charles de Gaulle France
    Paris-Orly France
    TAV Airports

     

     

     

     

     

     

     

     

     

     

     

     

          		Antalya Turkey
    Almaty Kazakhstan
    Ankara Turkey
    Izmir Turkey
    Bodrum Turkey
    Gazipasa Turkey
    Medina Saudi Arabia
    Monastir Tunisia
    Enfidha Tunisia
    Tbilisi Georgia
    Batumi Georgia
    Skopje North Macedonia
    Ohrid North Macedonia
    Zagreb Croatia
    GMR Airports

     

     

          		Delhi India
    Hyderabad India
    Cebu Philippines
    Medan Indonesia
    ADP International

     

     

     

          		Santiago de Chile Chile
    Amman Jordan
    Antananarivo Madagascar
    Nosy Be Madagascar
    Conakry Guinea

    Appendix 3 – 2021 and 2022 Revenue of Retail and Services

    Revenue of Extime Food & Beverage Paris is included in "Other Shops and Bars and restaurants" revenue.

    In 2021 and 2022, it was presented in "Other retail products" revenues. The rectified historical data for the breakdown of revenues in the Retail and Services segment is shown below:

    2021 Retail and services

      Q1 2021 H1 2021 9M 2021 FY 2021
    (in millions of euros) published corrected published corrected published corrected published corrected
    Revenue 135 135 289 289 534 534 825 825
    Retail activities 55 55 115 115 258 258 428 428
    Extime Duty Free Paris (ex. SDA) 41 41 84 84 186 186 311 311
    Relay@ADP 3 3 8 8 21 21 36 36
    Other Shops and Bars and restaurants 5 5 9 10 21 24 36 40
    Adverstising 3 3 6 6 11 11 18 18
    Other retail products 3 3 8 7 18 16 27 23
    Car parks and access roads 15 15 31 31 60 60 90 90
    Industrial services revenue 27 27 68 68 95 95 146 146
    Rental income 30 30 58 58 90 90 122 122
    Other income 8 8 17 17 31 31 39 39

    2022 Retail and services

      Q1 2022 H1 2022 9M 2022 FY 2022

     
    (in millions of euros) published corrected published corrected published corrected
    Revenue 270 270 625 625 1,020 1,020 1,442
    Retail activities 144 144 367 367 643 643 922
    Extime Duty Free Paris (ex. SDA) 104 104 254 254 438 438 631
    Relay@ADP 14 14 39 39 70 70 95
    Other Shops and Bars and restaurants 12 14 32 44 53 82 119
    Adverstising 5 5 13 13 23 23 35
    Other retail products 8 7 29 17 58 29 41
    Car parks and access roads 28 28 67 67 110 110 149
    Industrial services revenue 50 50 91 91 114 114 156
    Rental income 34 34 69 69 104 104 140
    Other income 14 14 32 32 49 49 75


    1 Subject to the approval of the General Meeting of the Shareholders of May 16th, 2023, approving 2022 accounts.
    2 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.
    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 for the 2019-2022 period is available on the company's website.
    4 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.
    5 The accounts of the Almaty airport management company have been included in the consolidated accounts of TAV Airports from May 2021 (See section 5.1.6 of the 2021 Universal Registration Document regarding the acquisition of the Almaty airport management company).
    6 Net Financial Debt as of December 31st, 2022, compared to the 2022 EBITDA.
    7 The accounts of the Almaty airport management company have been included in the consolidated accounts of TAV Airports from May 2021 (See section 5.1.6 of the 2021 Universal Registration Document regarding the acquisition of the Almaty airport management company).
    8 The accounts of the Almaty airport management company have been included in the consolidated accounts of TAV Airports from May 2021 (See section 5.1.6 of the 2021 Universal Registration Document regarding the acquisition of the Almaty airport management company).
    9 Measures negotiated with the representative trade unions and consisting in particular of (i) a return to the 2019 level of remuneration for employees affected by the work contract adaptation plan (PACT) and (ii) an additional general increase of 3% for all ADP SA employees.
    10 CET: Territorial financial contribution.
    11 The accounts of the Almaty airport management company have been included in the consolidated accounts of TAV Airports from May 2021 (See section 5.1.6 of the 2021 Universal Registration Document regarding the acquisition of the Almaty airport management company).
    12 Revenue of Extime Food & Beverage Paris is included in "Other Shops and Bars and restaurants" revenue. In 2021 and 2022, it was presented in "Other retail products" revenues. The corrected historical data for the breakdown of revenues in the Retail and Services segment is shown in Appendix 3 of this financial release.
    13 The accounts of the Almaty airport management company have been included in the consolidated accounts of TAV Airports from May 2021 (See section 5.1.6 of the 2021 Universal Registration Document regarding the acquisition of the Almaty airport management company).
    14 Including Almaty and Zagreb airports.
    15 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 for the 2019-2022 period is available on the company's website.
    16 Airports of Conakry, Antananarivo and Nosy Be.
    17 See financial release of the 2021 full-year results, published on February 16th 2022.
    18 See financial release of the 2022 half-year results, published on July 27th 2022.
    19 See financial release of the 2022 9-months-revenue, published on October 27th 2022.
    20 The group's traffic includes the traffic of Delhi International Airport Limited (DIAL), Hyderabad International Airport Limited (GHIAL), Mactan Cebu International Airport and Almaty International Airport from 1 January 2019. Following the non-renewal of the technical assistance contract (TSA) for Mauritius airport on 31 December 2021, the group's traffic no longer includes the traffic of Mauritius airport.
    21 In constant euros.
    22 The net financial debt / EBITDA ratio target is calculated excluding the proceeds of the unwinding of cross-shareholding with Royal Schiphol Group see the February 16th 2022 financial release.
    23 Subject to the approval of the General Meeting of the Shareholders of May 16th, 2023, approving 2022 accounts.
    24 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 for the 2019-2022 period is available on the company's website.
    25 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.

     

    Attachment


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