Aeroports De Paris Sa

Welcome to the 2025 9 Months Revenue presentation of Group ADP. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to Cecil Combo, Head of Investor Relations, to begin today's conference. Please go ahead.

Good morning, everyone, and thank you for joining us for our nine-month revenue presentation. I'm here with Christelle de Rovillard, Group CFO, who will go through some prepared remarks before the Q&A session. Before we start, and as usual, I remind you that certain information to be discussed on today's call is forward-looking and is subject to risks and uncertainties that could cause actual performance to differ materially. For this, I refer you to the disclaimer statement included in our press release and on slide 30 of our presentation.

And I will now leave the floor to our CFO, Christelle de Rubillard. Thank you, Cécile, and good morning, ladies and gentlemen. Thank you for joining us to discuss our 2025 nine-month revenue. Let me now turn to slide three for our key highlights. The left part of the slide showcases two solid figures we have recorded over the first nine months, despite a demanding context, as I will comment later. Group traffic is up 4%, while consolidated revenue grew 9% to above 5 billion euros. This enabled us to confirm our 2025 outlook and targets. On strategic matters, we continue to move forward on the key projects that will shape our competitiveness and long-term development. You already know about most of them. The Connect France partnership with Air France, which is delivering its first tangible results, including the short connection pass launched this summer. The CDG-EVU public consultation, completed in July, which has provided valuable insights for our long-term development plan for Paris CDG. And last but not least, our work towards the next economic regulation agreement is progressing well. I am pleased to announce that our proposal will be unveiled on December 10th, marking the start of the formal process that should lead to a new multi-year regulatory agreement starting in January 2027. I will come back to this important topic in a few minutes. On slide 4, a few words on our airport tariffs. On October 17, the Group submitted its Tariff Proposal for 2026, corresponding to a 1.5% increase. As a reminder, our two previous tariff hikes for 2024 and 2025 have fully offset the impact of the infrastructure tax on the regulated scope. We will now be awaiting the approval decision by the regulator within two months, as per the usual timeline. Let's jump to slide 6. Traffic in the nine months evolved broadly in line with our assumption, despite a less favorable context in some geographies. In Paris, traffic was up 3.5% year-on-year, that is a 2% growth in Q3. While domestic traffic remains on the decline, international traffic has been driving growth since the beginning of the year. Traffic with North America remains above 2019 levels, with growth normalizing at 2%. Traffic with Africa is up 5.5%, driven by VFR demand being well above 2019 traffic, reaching 121%. Traffic with Asia-Pacific Human recovery is the most dynamic, growing 8%, exceeding 90% of pre-COVID levels. Among these, China cashes up, but capacities are not expected to increase further. At the group level, trends are mixed, but showcase strong underlying growth dynamics, up 4%, despite headwinds in some markets. South airport traffic is at 5%, especially driven by its international assets, while Turkey saw less dynamism. GMR airport traffic grew by 3%, largely driven by Darabad, while Delhi faced a difficult Q2 and Q3, given geopolitical tensions, runway works, and the partial grounding of Air India fleet. Lastly, despite its unstable geopolitical context, AIG recorded a significant growth of 7.5%. Let me now turn to slide 7, Retail Performance. As mentioned, S-Bank's Pencil Packs stand at €31.3, 5.3% above 2023 levels, but down 0.3% year-on-year. After an outstanding Q1 and muted Q2, This confirms the sequential slowdown we had commented upon. As a reminder, our full year outlook guided for an underlying 1% decline or growth in SPP versus 2024. As discussed earlier this year, the cause of this trend is to fold. Previously flagged effects inherent to ADP's 2025 situation. the adverse comparison against the Olympics-driven advertising in 2024, ongoing works in Terminal 2 Ije, and reopening of terminals with lesser retail performance, but also external headwinds, namely the slowdown in the luxury sector driven by the appreciation of euro against foreign currencies and adjustments in brand pricing policies. Observing this transitory effect, we stand cautious but remain confident in our underlying retail strategy and offering. Moving on to slide 8, revenue reached just above 5 billion euros in the first 9 months of 2025, a solid growth of 9.4% compared to the same period in 2024. This increase is driven by various trends in each of our segments. In Paris, the aviation segment is up 106 million euros, reflecting both our tariff hike and the continued traffic growth. The retail and services segment is up 178 million euros, which is largely due to scope effects from the acquisition of PS and PEG in late 2024. Excluding those effects, the segments of subdued growth due to the headwinds I mentioned and the end of re-invoicing linked to line 14. International is up 149 million euros. CAEV delivered double-digit revenue growth thanks to its international assets and services companies, while AIG continues its recovery despite geopolitical tensions. Now, let's go through the outlook. Quickly on slide 10 to confirm our outlook for 2025. unchanged since the last publication. You have already noted the reinstatement of the dividend floor of €3 per share for 2025. Looking forward, I can highlight that our 2026 out-token targets will be provided upon our 2025 full-year publication in February next year. Now on to slide 11 to conclude this presentation with a word on our next economic regulation agreement. We can now share a clearer timeline for the start of the process. Group ADP will release its public consultation document on December 10th, which will officially kick off the negotiation and approval process. The rest of the timetables remains unchanged. Discussion with the French state and regulator of opinion will unfold in 2026, with the objective to launch the new contract in January 2027. To give you a comprehensive view of our industrial project and the key assumptions, parameters, and causes of our proposal, we will host an investor teaching in Paris on December 11. This half-day meeting will feature a plenary session, followed by deep dive workshops with management, and plenty of time for Q&A and direct exchanges. The plenary will be live streamed for those who cannot attend in person. But we very much hope to welcome many of you in Paris and discuss the details of our proposal face to face. That's all for this section. Let's now open the line for your questions.