The Board of Directors of Aéroports de Paris met on 19 September 2006 under the direction of Pierre Graff to review the Group’s first-half 2006 accounts.
KEY FIGURES
Key figures have been restated to neutralise the impact of non-recurring charges relating to the IPO on 16 June 2006, which had a big impact on the presentation of the H1 2006 financial statements.
In order to better reflect the real financial performance of the group, the restated figures also take into account the retrocession of air navigation assets to the French State.
Business was buoyant in H1 2006, lifted by strong passenger traffic growth, up 5% to 39.7
million passengers. This performance reflects a slight improvement in domestic traffic
(+0.9%) and the dynamic growth of international routes (6.3%). International traffic varied
according to destination. Growth was very strong on routes to Latin America (+12.4%),
Africa (+8%), Asia-Pacific (+8.6%) and Europe (+7.9%), and was a bit slower to the
Middle East (+3%) and North America (+1.3%). Traffic to the French overseas territories
continued to contract sharply (down 7%), notably due to the epidemic plaguing La
Réunion.
Aircraft movements rose 3.1% to 373,515.
Revenues increased 7.3% to €988.6m.
The biggest changes in operating charges are described below:
- Purchases were up 20.8% to €62.5m. The increase is entirely due to higher energy prices and the expansion of SDA’s scope of business to CDG1. SDA (Société de Distribution Aéroportuaire) is a retail subsidiary specialising in alcohol, tobacco, perfume and gourmet food products at the Paris-Charles de Gaulle airport.
- Outsourced services rose in a controlled manner, up 2.4% to €245.7m;
- Personnel charges rose 5.3% to €314.5m. They were flat for Aéroports de Paris SA, the parent company. The increase can be attributed to a 5.5% increase in the average number of Group employees. Parent company employment contracted a slight 1.5%, while the number of employees at subsidiaries rose 28.8%, notably
due to a 30.3% increase in staff size at the Alyzia group. This increase is mainly due to Alyzia Sureté, which took responsibility for security markets, resulting in a similar increase in personnel.
- Taxes rose 20.7% to €63.1m, mainly due to an increase in the professional tax.
Ebitda was up 5.5% to €323m, vs €306.1m in H1 2005. Excluding the impact of the IPO and the transfer of air navigation assets, Ebitda would have risen 7.8%.
Current operating income rose slightly to €181m under the combined impact of Ebitda growth and greater amortisation (+12.8%). The increase in amortisation is primarily due to the accelerated depreciation of €14.7m in H1 2006, due to renovation work and the demolition of outdated buildings.
The balance of other operating income and charges was largely negative at €54.1m due to IPO-related charges, including the cost of employee benefits accorded by the French state as part of an employee profit-sharing offer (€33.3m for a 20% discount, free shares and deferred payments), a green shoe of €9.6m, and IPO-related expenses, including fees, marketing expenses and technical expenses, net of expenses attributed to the issue
premium (€9.8m).
Operating income declined 28.5% to €126.9m, from €177.5m in H1 2005, after restating to comply with IFRS.
Net income rose 4.9% excluding non-recurring items ²
The net interest charge was flat at €41.9m. The gross cost of debt rose 6.9%, mainly due to higher interest rates, although this was offset by the increase in cash income drawn from loans at the end of 2005.
The corporate earnings tax declined 14.8% to €41.3m. This decline is notably due to the
reduction in the tax base due to IPO-related charges.
Attributable net income was down 49.2% to €44.9m, from €88.4m in H1 2005.
Excluding the impact of the IPO and the disposal of air navigation assets, net profit would
have risen 4.9% to €91.5m, from €87.2m in H1 2005.
HIGHLIGHTS BY SEGMENT
Airport services
The airport services segment reported revenues of €827.4m, up 6.7% from the year-earlier period. Excluding non-recurring items, revenues would have risen 7.6% to €827.4m compared to H1 2005.
Revenues from airline services increased 4.2% to €364.7m, buoyed by the 5% increase in passenger traffic and the 5% increase in airport fees at 15 May 2006. The 3.8% decline in special service fees must be kept in perspective given the very high level of de-icing revenues in 2005.
Professional services rose 5.4% to €122.6m, lifted by higher energy prices, the leasing of new surface areas in the terminals (lounges) and airfields.
Airport tax revenues increased 13.2% to €167.2m, buoyed by the increase in the unit passenger fee, which rose to €8.5 per departing passenger from €7.95 in 2005, and traffic growth.
Passenger services rose 7.1% to €172.9m, thanks to the positive effect of the new parking lot pricing policy introduced in 2005 (higher rates, subscription fees and long-term flat rates) and the strong growth of retail activities in duty-free areas.
In the airport services segment, Ebitda rose 3.1% to €313.8m. Excluding non-recurrent items, Ebitda would have increased 5.3% to €313.8m.
Current operating income for the segment declined 1.9% to €197.8m due to the impact of accelerated amortisation (€10.9m). Excluding non-recurrent items, the decline in current operating income would have been only 0.6% to €198.7m.
Ground handling and related services
Ground handling and related services generated revenues of €82.8m, down 1.2% from H1 2005, due to two contrasting trends. First, there was a €5.2m shortfall in revenues from ground handling services due to the loss of major contracts in 2005 that were not offset by new customers in H1 2006. Second, revenues from security-related activities rose strongly thanks to the Alyzia Sûreté subsidiary, which took over the passenger-screening
contract at Orly that was previously subcontracted outside the group.
Current operating income for the segment before head office expenses was €10.1m, €7.4m lower than in H1 2005.
On the whole, however, the deterioration in the financial performance of this segment has slowed, since operating income was down only €1.9m compared to H2 2005.
Real estate
The real estate segment reported revenues of €83.2m, up 7.3% compared to H1 2005.
Growth is mainly due to rental payments on undeveloped land and facilities as part of new real-estate development projects (the new Air France-KLM flight crew complex at Paris-CDG and the regional mail sorting centre in Orly for La Poste).
Current charges are under tight control. Amortisation increased 12.1%, driven up by the accelerated amortisation of demolition work needed for the construction of the new GB2 cargo platform at Paris-CDG.
Operating income for the segment before head office expenses totalled €21m, up 25.4% compared to H1 2005.
Other activities
Other activities generated overall revenues of €108.5m, up 16.2% compared to the year-earlier period.
Operating income before head office expenses came to €11m, up 150% from the H1 2005 figure restated for IFRS.
For the most part, these results reflect the segment performances of Aéroports de Paris and the four subsidiaries:
- Aéroports de Paris’ contribution to revenues was up 37.9% due to the positive settlement of claims on an export dispute and the implementation of long-term contracts with GSM telecom operators.
- The contribution of Société de Distribution Aéroportuaire (SDA) to revenues from ordinary activities increased 26.6% due to the dynamic momentum of international routes and the expansion of SDA’s scope of business to include alcohol, tobacco, perfume and gourmet food shops in the CDG1 terminal as of early 2006.
- Hub Telecom reported flat revenues, but numerous projects are currently in the roll out phase.
- ADPm and ADPi reported revenue growth and won new contracts in Algeria and Dubai, respectively.
BALANCE SHEET
Net debt contracted sharply to €1,812.8m from €2,297.7m in H1 2005, thanks to the increase in liquidity following the new share issue.
Gearing was significantly lower at 0.68, compared to 1.13 at the end of 2005.
OUTLOOK
Based on the level of traffic reported at 30 June 2006, Aéroports de Paris expects traffic growth to range between 4% and 4.5% in full-year 2006.
Management expects revenues and Ebitda to grow slightly faster than passenger traffic over the full year.
AGENDA
Publication of Q3 2006 revenues: 10 November 2006
A webcast of the H1 2006 earnings presentation can be seen at the following address:
http://www.aeroportsdeparis.fr/Adp/en-GB/Groupe/Finances/
Press Contact :
Jérôme Dutrieux : 01 43 35 70 70
Charlotte de Chavagnac : 01 43 35 71 34
Investor Relations :
Benoît Trochu : 06 27 26 49 11
Delphine Deshayes : 01 43 35 72 58
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 Aéroports de Paris. They notably include information regarding the financial condition, results of operations and business of Aéroports 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 Aéroports de Paris and cannot be easily predicted. They can lead to results substantially different from the information included in the forward-looking statements. 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.06-36.
Consequently, these statements are no guarantees of future performance and Aéroports de Paris undertakes no obligation to revise or update these forward- looking statements.
APPENDIX
Income statement
| (in thousands of euros) |
Notes |
H1 2006 |
H1 2005 |
Change 2006/2005 |
| Revenue from ordinary activities |
7 |
988 628 |
927 534 |
+6,6% |
| Own work capitalised and finished goods inventories |
9 |
20 816 |
23 966 |
-13,1% |
| Revenues for the period |
|
1 009 444 |
951 500 |
+6,1% |
| Purchases used |
|
(62 571) |
(51 782) |
+ 20,8% |
| External services and charges |
11 |
(245 632) |
(239 868) |
+2,4% |
| Value added |
|
701 241 |
659 851 |
+6,3% |
| Personnel charges |
10 |
(314 508) |
(298 570) |
+5,3% |
| Taxes |
11 |
(63 094) |
(52 276) |
+20,7% |
| Other operating charges |
11 |
(11 339) |
(22 301) |
-49,2% |
| Other current operating income |
8 |
6 606 |
4 714 |
+40,1% |
| Impairment of receivables, net |
12 |
3 731 |
9 666 |
-61,4% |
| Net allowances to provisions |
12 |
402 |
4974 |
-91,9% |
| EBITDA |
|
323 039 |
306 059 |
+5,5% |
| Amortization |
12 |
(142 135) |
(125 958) |
+12,8% |
| Impairment of fixed assets, net |
12 |
144 |
131 |
+9,7% |
| Current operating income |
|
181 048 |
180 232 |
+0,5% |
| Other operating income and expenses |
13 |
(54 120) |
(2 699) |
|
| Operating income |
|
126 92 |
177 533 |
-28,5% |
| Net finance cost |
14 |
(41 933) |
(41 874) |
+0,1% |
| Share in earnings of associates |
15 |
1 203 |
1 215 |
-0,9% |
| Income before tax |
|
86 19 |
136 874 |
-37,0% |
| Income tax expense |
16 |
(41 308) |
(48 470) |
-14,8% |
| Net income for the period |
|
44 89 |
88 404 |
-49,2% |
| Net income attributable to minority interests |
|
- |
- |
|
| Net income attributable to equity holders of the parent company |
|
44 890 |
88 404 |
-49,2% |
Balance sheet
| ASSETS (in thousands of euros) |
Notes |
Au 30.06.2006 |
Au 31.12.2005 |
| Intangible assets |
18 |
32 114 |
30 325 |
| Property, plant and equipment |
19 |
4 567 324 |
4 423 613 |
| Investment property |
20 |
300 081 |
305 648 |
| Investments in associates |
15 |
9 102 |
19 401 |
| Other non-current financial assets |
21 |
208 490 |
167 316 |
| Deferred tax assets |
16 |
980 |
1 620 |
| Non-current assets |
|
5 128 090 |
4 947 923 |
| Inventories |
22 |
6 736 |
5 981 |
| Trade receivables |
23 |
391 232 |
345 001 |
| Other receivables and prepaid expenses |
24 |
147 754 |
146 658 |
| Other current financial assets |
21 |
75 708 |
233 093 |
| Current tax assets |
16 |
25 562 |
1 777 |
| Cash and cash equivalents |
25 |
847 641 |
388 348 |
| Current assets |
|
1 494 634 |
1 120 858 |
| TOTAL ASSETS |
|
6 622 72 |
6 068 781 |
| EQUITY AND LIABILITIES (in thousands of euros) |
Notes |
1ersemestre 2006 |
1ersemestre 2005 |
| Share capital |
26 |
296 882 |
256 085 |
| Share premium |
26 |
542 807 |
- |
| Translation reserve |
26 |
(229) |
1 008 |
| Fair value reserve |
26 |
48 009 |
19 302 |
| Retained earnings |
|
1 724 502 |
1 574 396 |
| Net income for the period |
|
44 890 |
179 937 |
| Equity |
|
2 656 860 |
2 030 727 |
| Non-current debt |
28 |
2 545 301 |
2 571 380 |
| Provisions for employee benefit obligations (more than one year) |
27 |
383 439 |
374 985 |
| Other non-current provisions |
16 |
531 |
802 |
| Deferred tax liabilities |
29 |
67 334 |
56 703 |
| Other non-current liabilities |
29 |
33 586 |
33 918 |
| Non-current liabilities |
|
3 030 191 |
3 037 788 |
| Trade payables |
30 |
342 692 |
434 719 |
| Other liabilities and deferred income |
31 |
365 629 |
262 316 |
| Current debt |
28 |
167 255 |
180 232 |
| Provisions for employee benefit obligations (less than one year) |
27 |
26 385 |
26 747 |
| Other current provisions |
27 |
32 603 |
33 295 |
| Current tax payables |
16 |
1 108 |
35 657 |
| Current liabilities |
|
935 673 |
1 000 266 |
| TOTAL EQUITY AND LIABILITIES |
s |
6 622 72 |
6 068 781 |
Funds flow statement
| (in thousands of euros) |
Notes |
1ersemestre 2006 |
1ersemestre 2005 |
| Operating income |
|
126 928 |
177 533 |
| Adjustment for non-cash income and expenses: |
|
|
|
| - Depreciation, amortization, impairment and net allowances to provisions |
|
149 770 |
117 279 |
| - Capital losses (gains) on disposals |
|
(386) |
320 |
| - Cost of employee benefits as part of the employee profit-sharing offer |
|
33 331 |
- |
| - Others |
|
(3 387) |
(979) |
| Time lag in receipt of insurance payments for Terminal 2E |
|
41 411 |
- |
| Interest expense other than cost of net debt |
|
(1 006) |
400 |
| Operating cash flow before changes in working capital and tax |
|
346 660 |
294 553 |
| Decrease (increase) in inventories |
|
(755) |
(243) |
| Increase in trade and other receivables |
|
(29 605) |
(47 108) |
| Increase (decrease) in trade and other payables |
|
(8 411) |
23 108 |
| Change in working capital |
|
(38 772) |
(24 243) |
| Income taxes paid |
|
(79 803) |
1 919 |
| Cash flow from operating activities |
|
228 085 |
272 229 |
| Acquisitions of subsidiaries (net of cash acquired) |
|
(20) |
4 |
| Purchase of property, plant & equipment and intangible assets |
32 |
.(287 119) |
(201 172) |
| Change in other financial assets |
|
8 318 |
3 064 |
| Proceeds from the sale of property, plant & equipment |
|
117 555 |
91 |
| Proceeds from the disposal of non-consolidated investments |
|
75 |
2 |
| Dividends received |
|
2 |
2 185 |
| Increase (decrease) in capital investment payables |
|
(61 962) |
(83 811) |
| Cash flows from investing activities |
|
(223 151) |
(279 637) |
| Capital grants received in the period |
|
897 |
4 |
| Proceeds from the issue of shares or other equity instruments |
32 |
581 253 |
- |
| Dividends paid to shareholders of the parent company |
|
(63 169) |
(0) |
| Proceeds on issuance of long-term debt |
|
2 213 |
131 712 |
| Repayment of long-term debt |
|
(4 441) |
(110 486) |
| Interest paid |
|
(107 935) |
(110 134) |
| Interest received |
|
45 854 |
41 237 |
| Cash flows from financing activities |
|
454 672 |
(47 667) |
| Impact of first time application of IAS 32 & 39 |
|
- |
418 |
| Change in cash and cash equivalents |
|
459 606 |
(54 658) |
| Net cash and cash equivalents at beginning of period |
32 |
381 328 |
163 975 |
| Net cash and cash equivalents at end of period |
32 |
40 934 |
09 317 |
Financing from free cash flow was restated to include the impact of the lag between the reporting of expected insurance payments arising from the terminal 2E accident and actual receipt of the funds.