Aeroports De Paris Sa

Hello and welcome to the Group ADP 2023 full year results. My name is Caroline and I will be your coordinator for today's event. Please note this call is being recorded and for the duration of the call, your lines will be on listen only mode. However, you will have an opportunity to ask questions at the end of the call. This can be done by pressing star one on your telephone keypad to register your questions. If you require assistance at any point, please press star zero and you'll be connected to an operator. I will now hand over the call to your host, Cécile Combo, the Head of Investor Relations at Group ADP, to begin today's conference. Thank you.

Thank you, and good morning, everyone. I am Cécile Combo, Head of Investor Relations at Group ADP, and with me are Augustin de Romanet, Chairman and CEO, Edward Arquette, Deputy CEO, and Philippe Pascal, CFO. After going through some prepared remarks about our full year results, we will open the line to Q&A. Two questions each should allow all of you to dialogue with the management. As a reminder, certain information to be discussed on today's call is forward-looking and subject to risks and uncertainties that could cause actual results to differ materially. For this, I refer you to the disclaimer statement included in our press release and on slide 47 of our presentation. And with that, let me hand it over to Chairman and CEO, Augustin de Roumanet.

So, good morning, everybody. Ladies and gentlemen, dear friends, thank you, Cécile. And thanks for everybody to join us to talk about our full year results. So, slide three. You have the highlights of our full year results. So the transformation engaged with 2025 Pioneers is progressing well and we are seeing tangible results at all levels. First, traffic. Traffic is developing in line with our expectations and we are now very close to full recovery at group level. As you see, the recovery is better abroad than in France. We are fully on track with the deployment of our new retail concept next time, and it's already showing promising results for the future we will develop. Third, we continue to work on reinforcing our photo growth relays with our international portfolio of airport assets. And then, we are delivering a robust set of results while acting on the decarbonization of our activities. So let's take a closer look at these four achievements. First, traffic. So in 2023, traffic end up in line without expectations in Paris and internationally. We see almost full recovery at group level with traffic at 1999 of 2019 level representing 20% increase against last year. In Paris, traffic grew 15% to reach close to 100 million passengers, or 92% recovery. During last summer in Paris, we had a foretaste of the Olympics with the Para Athletics World Championships, followed by the Rugby World Cup during fall. Improving our passenger experience remains a priority in all our airports, in Paris and abroad, with or without sport events. The older teams of Group ADP are fully mobilized to bring our values of hospitality to life and welcome all passengers into our airports to our best. And the deployment of each time is in this period. So if you can put the next slide, yes, X-Time slide. So X-Time is a part of the range of services we propose to passengers who travel to our Parisian platforms. And our aim is to export this concept. This concept was introduced with our 2025 Pioneers roadmap, and the past year was really year one of its fallout. We've deployed the new brand in all Paris Charles de Gaulle and Orly terminals. The migration to the concept of boutique terminal became a reality at Terminal 1 and Terminal 2 BD, which are the two pilots in the premium and lifestyle formats. In the next slides, Philippe Pascal will explain you how this concept allows us to have with the Terminal 1 the best terminal of the world if you consider the spend-per-packs. We also set up the basis for the X-Time digital ecosystem. The new X-Time reward program has nearly 3 million members, exactly 2.7, and the new online marketplace is already operational. are two key elements to stimulate demand and increase sales. Each time reward members spend close to twice as much as non-members. Last, we've also set up a new organizational and economic model with the creation of certified operators and the installation of internal financial flows linked to the franchise model. All in all, We can see that this strategy is already producing very good results. Spent per pax in Paris reached 30.6 euros in 2023, which is 12% higher than in 22, and 30% higher than in 2019. And if I can add, 90% higher than in 2020. 2012 because in 2012 we were at 16 euros per pack so it's very promising now the Paris Olympics challenge we will open the gates to the games in a few months which means that during just a few weeks next summer we will be welcoming thousands of athletes journalists and officials in our airport, in and out of the gates, with luggage and equipment requiring special care. To handle this challenge, we've been working on adapting our infra. For example, in Paris CDG, we refurbished a boarding lounge that will be dedicated to athletes, and we have also launched a temporary luggage sorting area. We are also mobilizing our team within a volunteering program. This special operational organization has also been designed to offer the best possible hospitality to summer tourists. The Olympics are acting as booster to our transformation, as you can see on the next slide. In fact, the Olympics are raising the bar in terms of quality of service and operational resilience. It's also a very good opportunity to introduce some long-lasting transformations which are fully consistent with our 2025 Pioneers by Vision. To illustrate that, I will just mention three points. The remote check-in service at the Olympic Village. This large-scale experimentation will provide critical input for our future platform plans. Second, the arrival of Metro Line 14 in our new multimodal station at Orly will allow persons to go from the center of Paris to Orly by Metro Line in 30 minutes. with a direct line. Equipment power ups are 75 complaints today and operations in preparation for commissioning are well engaged. It's a contig step towards decarbonisation and quality of access to our platform. We consider that we will increase the level of people arriving by collective transportation by 10% the first year. The Olympics help us making our airports more inclusive. Since October, we've set up a consultative committee for people with disabilities, which have already led to the rollout of developments to improve accessibility. This being said about Paris, let's move on to our international activities. In 2023, we continued to strengthen our international portfolio. To name a few of the progress made this year, you can see a dozen of them on this slide, I will mention that works are ongoing to increase the capacity of several of the group airports, notably Almaty in Kazakhstan, Antalya in Turkey, and Delhi in India. The latter being already the groups most frequented airport ahead of Charles de Gaulle. Together with our partner in India, we initiated the first steps towards the merger of GAL into GIL. The new merged company will be a listed airport pure player in which ADP will keep strong governance rights and economic interests. We continue to expect the transaction to be completed in the second quarter of this year. Third, TAVR Ports issued its first ever bond in the last quarter, raising $400 million and showing its ability to finance autonomously its needs and development. It's important in Turkey because, as you know, it's very hard to have a good access to the financial market, and TAVR showed a very, very good performance in this aspect. Last, in India, GAL increased its stake to 70% in the very successful Hyderabad airport, a valuable key asset. These achievements fit with our strategy of developing strong growth relays abroad with long maturities. Now, decarbonization. In 2023, we continue to work on ways to reduce our internal emissions and contribute to support low-carbon aviation. The improvement of our energy mix is a key lever to reduce internal emissions. In Paris, we have entered into discussions with providers with aim to develop additional solar farms covering increasing electricity needs of our platforms. AIG in Jordan inaugurated a solar farm at Amman Airport last December, with a generation capacity of close to 25% of the airport's operational energy requirements. Clark Airport is also moving in this direction and is applying for regulatory approval. Regarding decarbonization of airside activities, I will not only mention the intensive work to accelerate electrification of our platforms. We are doing what is necessary to meet the new electrical needs linked to mobility, but also electric alternatives to APUs. We are also actively supportive to the transition of air transport industry as illustrated at the bottom part of the slide. More broadly about our corporate and social responsibility, you can see on slide 10, The recognition of our actions. Group ADP was awarded on AA+, so 89% per 100 rating by the ASC score rating agency in December 2023. We responded to the CDP climate analysis and got B management rating in line with the Europe regional average. And four additional airports of ADP network have joined. the airport carbon accreditation program. You know, it is the ACI program to decarbonize airports. So our commitment is total. The appreciation of our CSS strategy and actions by these actors brings an additional tool to measure our progress and compare with others. To finish this introduction, I will highlight our strong financial performance on next slide 11. We've recorded an EBITDA above 1.9 billion euros. Net income group share reached 631 million euros, up 22% compared to 2022. In line with our distribution policy, we will propose a dividend of 3.82 euros in the next General Assembly. And now it's time to give the floor to Philippe Pascal, who will comment more in detail our full year financials. Thank you.