Aéroports de Paris: Q1 2014 consolidated revenue

Q1 2014 consolidated revenue:

traffic growth (+3.6%) not translated into revenue (-2.4% to €637 million) due to decrease in de-icing fees and scope effect (mothballing of cogeneration plant)

Financial Information as of 31 March 2014

• Continued good dynamics in traffic (+3.6%) since Q4 2013
• Aviation: sustained growth of airport fees (+5.8%, to €206 million) driven by traffic and tariffs increase, totally offset by the decrease in ancillary fees (-19.4% to €45 million) linked to low de-icing activity following an exceptionally mild winter
• Retail and services: growth of retail activities (+1.4%, to €85 million) more than offset by the strong decrease in industrial services (-53.7%, to €13 million) due to the mothballing in April 2013 of the cogeneration plant resulting in a decrease in electricity sales (-74.0%, to €4 million)
• Real estate: impact of the indexation of rents on CCI down by 1.74% as of 1 January 2014
• Continued control over operating costs strengthened by a positive effect on margins of no snowfall

Group revenue by segment:

Augustin de Romanet, Chairman and Chief Executive Officer of Aéroports de Paris, said:

"The upturn in traffic observed since the beginning of the fourth quarter of 2013 continued over the first quarter of 2014, with a 3.6% growth in passenger traffic at Paris airports. This growth did not translate into an increase in consolidated revenue mainly because of an external effect (decrease in revenue linked to de-icing activities, as a consequence of an exceptionally mild winter) and a scope effect (mothballing of cogeneration plant). Beyond revenue, our continued efforts on control over operating costs and no snowfall had a positive impact on our margins."

Aviation

Over the first quarter of 2014, aviation revenue increased by 0.5% to €376 million.

Revenue from airport fees (passenger fees, landing fees and aircraft parking fees) was up 5.8%, to €206 million, benefiting from the combined increase in tariffs (+3.0% on 1 April 2013) and the growth in passenger traffic (+3.6%).

Ancillary fees were down 19.4%, to €45 million primarily due to lower de-icing fees (-75.0%, to €5 million), as a consequence of an exceptionally warm winter. The number of de-iced aircrafts at Paris-Charles de Gaulle was divided by 24 compared to the first quarter of 2013.

In parallel, no snowfall in the first quarter of 2014 generated a big decrease in purchases of winter products and sub-contracting, with a positive impact on margins.

Revenue from airport safety and security services saw a slight increase of 0.9%, to €114 million, reflecting the change in security costs.

Other revenue mostly consists in re-invoicing the French Air Navigation Services Division and leasing associated with the use of terminals. It increased by 3.8%, to €11 million.

Retail and services

Over the first quarter of 2014, retail and services revenue decreased by 4.4%, to €224 million, mainly due to the decrease in revenue from industrial services.

The revenue from retail (rents received from shops, bars and restaurants, advertising, banking and foreign exchange activities, and car rental companies) grew by 1.4%, to €85 million in the first quarter of 2014. Rents from airside shops stood at €61 million, up 4.8%, thanks to the growth in passenger traffic (+3.6%) and the increase in sales per passenger (+1.1%, to €18.0).

This performance was for the most part attributable to the growth of business at duty paid shops, whose sales per passenger increased by +6.4%, to €7.0, driven by (i) the opening of new retail space (Terminal 2F) and (ii) the success of the diversification of Relay shops. We observed a slowdown in the growth of sales at duty free shops, whose sales per passenger were virtually stable, at €31.7, due to a stable number of shops and an unfavourable exchange-rate effect (the euro being at a historically high level compared to Yen or US dollar, for instance).

Revenue from car parks rose by 7.8 %, to €43 million, due to the new rate structure.

Revenue from the provision of industrial services (electricity and water supply) decreased by 53.7%, to €13 million, due to the mothballing in April 2013 of the cogeneration plant that resulted in a decrease in electricity sales (-74.0%, to €4 million) and the decrease in the supply of heating       (-25.8%, to €7 million) as a result of an exceptionally warm winter. This decrease was offset by an equivalent decrease of consumable used.

Rental revenue (leasing of space within terminals) increased by 2.0%, to €27 million.

Other revenue essentially consisted of internal services and increased by 0.6%, to €56 million.

Real estate

Over the first quarter of 2014, real estate revenue decreased by 1.6%, to €65 million.

Internal revenue was down by 1.4%, at €13 million.

External revenue was down by 1.7%, at €52 million mainly due to the negative impact of indexation of rents on the cost of construction index on 1 January 2014 (-1.74%).

New presentation of financial statements

Following the creation of the International and Subsidiaries Division, and to better reflect the ambition and international strategy of the Group, Aéroports de Paris has decided to transfer to the "Airport investments" segment ADP Ingénierie and the stake in TAV Construction, previously reported in the "Other activities" segment, and to rename this newly-formed segment "International and airport developments".

2013 pro forma consolidated financial statements were prepared in accordance with the change described above (see appendix).

International and airport developments

Over the first quarter of 2014, international and airport developments segment revenue was down by 26.9%, at €16 million.

ADP Ingénierie revenue decreased by 31.4%, to €13 million, due to the completion of some projects in the Middle East. At the end of March 2014, ADP Ingénierie contractual backlog stood at €76 million for the 2014 - 2018 period.

Aéroports de Paris Management revenue was down by 4.4%, at €4 million.

TAV Airports, accounted under the equity method (share of Group net result below EBITDA), posted excellent results over the first three months of the year thanks to the growth in traffic (+15.6%). TAV Airports revenue was up by 2%, at €190 million, EBITDA increased by 27%, to €67 million and net income by 28%, to €20 million.

Other activities

Over the first quarter of 2014, other activities revenue decreased by 1.0%, to €47 million.

Hub One saw its revenue grow by 2.5%, to €30 million, due to the growth of the backlog of the Mobility Division.

Alyzia Sûreté revenue was down by 0.7%, at €16 million.

Change in passenger traffic over the first quarter of 2014

• Aéroports de Paris Group stake-weighted traffic:

• Passenger traffic at Paris-Charles de Gaulle and Paris-Orly :

Over the first quarter of 2014, traffic grew by 3.6%, to 20.1 million passengers: it increased by 2.8% at Paris-Charles de Gaulle (13.8 millions passengers) and increased by 5.5% at Paris-Orly (6.3 million passengers).

Geographic split was as follows:

The number of connecting passengers was up by 3.4% and the connecting rate was stable at 26.0%.

Air traffic movements (159,864) were down by 2.0%.

Freight and postal activity was up by 3.3%, with 536,119 tonnes transported.

Passenger traffic for April 2014

In April 2014, Aéroports de Paris saw 8.0 million passengers, up by 6.6%. 5.5 million passengers travelled through Paris-Charles de Gaulle (+7.4%) and 2.5 million passengers through Paris-Orly (+4.9%).

A conference call will be held today at 9:00, CET

•   Live
• From France: + 33 1 70 77 09 34
• From other countries: + 44 203 367 9453
•  A replay of the call will be available from 12:00 pm (CET) by dialling:
• From France: +33 1 72 00 15 00
• From other countries: +44 203 367 9460
• Pin code: 286 939#

The presentation is available on our website: www.aeroportsdeparis.fr

Calendar

• Next publication of traffic figures
  • Monday 16 June 2014: May 2014 traffic figures
• Next publication of results
  • Thursday 31 July 2014: 2014 first half results

Appendix
New presentation of consolidated financial statements

Rationale

Following the creation of the International and Subsidiaries Division, and to better reflect the ambition and international strategy of the Group, Aéroports de Paris has decided to:

• transfer to the "Airport investments" segment ADP Ingénierie and the stake in TAV Construction, previously reported in the "Other activities" segment,
• and to rename this newly-formed segment into "International and airport developments".

Then, this change in presentation allows to better illustrate 1/ the positioning of the Group on the entire airport value chain and especially in airport management, design and construction and 2/ its ability to project this unique combination of skills internationally.

Changes described above are summarised in the following table:

2013 pro forma consolidated financial statements have been prepared in accordance with the changes described above:

• Impact on the "Airport investments" segment renamed "International and airport developments"

• Impact on the "Other activities" segment: