AviAlliance The Airport Management Company Q4 / 2017
Contents AviAlliance GmbH page 3 Airport portfolio page 4 14 Athens International Airport page 5 Budapest Airport page 7 Düsseldorf Airport page 9 Hamburg Airport page 11 San Juan Airport page 13 The two pillars of our business model page 15 18 Key success factors page 19 21 PSP Investments page 22 Disclaimer page 23 Back-up page 24 30 2
AviAlliance GmbH Düsseldorf Budapest Hamburg San Juan Athens AviAlliance is an independent airport investor which has established itself as one of the leading players in the airport privatization market. AviAlliance currently holds interests in the airports of Athens, Budapest, Düsseldorf, Hamburg, and San Juan (Puerto Rico) which in 2016 together handled 80.2 million passengers. 3
Our best reference The airport portfolio AviAlliance share PAX 2016 (in millions) Athens International Airport 40 % 20.0 Budapest Airport 55 % 11.4 Düsseldorf Airport 30 % 23.5 Hamburg Airport 49 % 16.2 San Juan Airport 40 % 9.0 4
Athens International Airport Overview Shareholders 55 % Greek state >40 % AviAlliance <5 % Greek investor Type of privatization Public-private partnership with BOOT contract Duration: up to 2026 Entry AviAlliance: 1996 Opening of airport: March 2001 Attractiveness of the asset Gateway to Southeastern Europe and central transfer point for people traveling to Europe from the Middle East Unique real estate development concept 5
Athens International Airport Traffic data and financials Facts and Figures 2016 Passengers in millions 20.0 Aircraft movements 189 137 Cargo in tons 88,619 Sales revenues in EUR million 432.2 of this non-aviation 36 % EBITDA in EUR million 297.5 PAX (in m) 12.5 15.2 18.1 20.0 Sales revenues (in EUR m) 312 352 403 432 2013 2014 2015 2016 2013 2014 2015 2016 6
Budapest Airport Overview Shareholders 55.438% AviAlliance 23.334% Malton (GIC) 21.228 % Caisse de dépôt et placement de Québec Type of privatization Privatization 2005 Duration: 75 years from 12/2005 (to 12/2080) Entry AviAlliance: 2007 Attractiveness of the asset Hungary's largest international airport First major airport privatization in CEE 7
Budapest Airport Traffic data and financials Facts and Figures 2016 Passengers in millions 11.4 Aircraft movements 96,141 Cargo in tons 112,143 Sales revenues in EUR million* 231.6 of this non-aviation 29 % EBITDA in EUR million* 170.4 PAX (in m) 8.5 9.2 10.3 11.4 Sales revenues (in EUR m)* 180 190 214 232 2013 2014 2015 2016 2013 2014 2015 2016 *Without fuel supply 8
Düsseldorf Airport Overview Shareholders 50 % City of Düsseldorf 30 % AviAlliance 20 % Aer Rianta Int. cpt Type of privatization Partial privatization, public-private partnership Duration: indefinite Entry AviAlliance: 1997 Attractiveness of the asset Third-largest airport in Germany In the heart of Europe s third-strongest economic zone and one of the largest metropolitan agglomerations in Europe (Eurostat) 9
Düsseldorf Airport Traffic data and financials Facts and Figures 2016 Passengers in millions 23.5 Aircraft movements 217,574 Cargo in tons 107,619 Sales revenues in EUR million 421.0 of this non-aviation 41 % EBITDA in EUR million 167.2 PAX (in m) 21.2 21.8 22.5 23.5 Sales revenues (in EUR m) 405 389 372 421 2013 2014 2015 2016 2013 2014 2015 2016 10
Hamburg Airport Overview Shareholders 51 % City of Hamburg 49 % AviAlliance Type of privatization Partial privatization, public-private partnership Duration: indefinite Entry AviAlliance: 2000 Attractiveness of the asset Opens up the Hamburg economic region, catchment area of 7.5 million people Fifth-largest airport in Germany 11
Hamburg Airport Traffic data and financials Facts and Figures 2016 Passengers in millions 16.2 Aircraft movements 160,642 Cargo in tons 65,600 Sales revenues in EUR million 244.1 of this non-aviation 34 % EBITDA in EUR million 88.4 PAX (in m) Sales revenues (in EUR m) 13.5 14.8 15.6 16.2 255 271 288 244 2013 2014 2015 2016 2013 2014 2015 2016 12
San Juan Airport Overview Shareholders 60 % Grupo Aeroportuario del Sureste (ASUR) 40 % AviAlliance Type of privatization Privatization 2013 Duration: Concession until 2053 Entry AviAlliance: 2017 Attractiveness of the asset Handles over 90 % of Puerto Rico`s air passenger traffic First successful privatization under the U.S. FAA Airport Privatization Pilot Program 13
San Juan Airport Traffic data and financials Facts and Figures 2016 Passengers in millions 9.0 Aircraft movements 149,134 Cargo in tons 172,829 Sales revenues in USD million* 134.6 of this non-aviation 41 % EBITDA in USD million* 72.9 PAX (in m) 8.3 8.6 8.8 9.0 Sales revenues* (in USD m) 94 120 128 135 2013 2014 2015 2016 2013** 2014 2015 2016 * incl. Passenger Facility Charges (PFC) ** 2013 figure for ten months only 14
The two pillars of our business model Acquisitions and asset management Acquisitions Lead investor for new acquisitions Placing airport competence at the disposal of consortium partners Additions to portfolio Asset management Improve operational efficiency and sustainably strengthen the economic potential of existing airport holdings Value appreciation of participations Increased earnings and cash flows from assets 15
AviAlliance as airport investor Investment criteria Airports which have not yet tapped their potential to the full and thus offer substantial scope for development Important criteria include: Good growth potential Attractive catchment area Scope for infrastructure expansion and space optimization Potential for non-aviation business Improvements for operational and business performance possible 16
AviAlliance as asset manager Value enhancement through active asset management AviAlliance know-how Asset management tasks Lasting value enhancement of each airport holding Specialized departments Expertise in the airports themselves Identifying potential for optimization Representing the interests of the private shareholders Working on boards and in committees Airport expansion in line with demand Increasing efficiency in operation and organization Aviation marketing Advising the respective airport management Development of nonaviation business 17
AviAlliance as asset manager Developments in the portfolio ATH: Photovoltaik park BUD: SkyCourt DUS: Airport City HAM: Airport Plaza 18
Key success factors Enhancing value AviAlliance optimizes its airports in terms of both operational and commercial performance by: Promoting passenger growth (wherever this can be influenced) Efficient planning and application of capital input Reducing commissioning risks Boosting non-aviation revenues Structuring financing Increasing and stabilizing debt servicing capability 19
What sets AviAlliance off from its competitors Airport services AviAlliance is both operator and investor. It combines operational know-how with modern management methods and transaction expertise. Operator and financing know-how Long-term commitment Integrative approach Active management Tailor-made solutions Independence AviAlliance has the requisite know-how in both operations and financing. AviAlliance is primarily interested in a long-term engagement. AviAlliance operates airports on an end-to-end basis, bundling aviation, non-aviation business, master planning and financing expertise. As shareholder AviAlliance assumes active responsibility for optimization and further development. AviAlliance adapts to the specific conditions, circumstances and requirements of each airport. AviAlliance operates independently of the performance of a home airport. 20
AviAlliance a reliable partner for For governments/ contract awarding bodies AviAlliance invests sustainably and long-term. adopts local culture. drives economic growth in the catchment area. takes economic and social responsibility for the region. For investors and third parties AviAlliance is a committed industrial partner. optimizes operational profitability. integrates operation/business plans and project financing. provides state of the art reporting and involvement. For airports For airlines For passengers AviAlliance combines local know-how with international experience. offers development opportunities for management staff. improves processes via technological and organizational efficiency. provides state of the art investment. AviAlliance provides adequate infrastructure. promotes process optimization. supports traffic development. defines products in line with demand of airlines. AviAlliance improves the passenger experience via intermodal integration, simplified processes, excellent facilities, way-finding signage and individualizes communication, attractive retail environment. 21
The Public Sector Pension Investment Board (PSP Investments) Overview One of Canada s largest pension investment managers Incorporated as a Crown Corporation in 1999 PSP Investments' mandate is to invest funds for four pension plans: - The Federal Public Service - The Canadian Forces - The Reserve Force - The Royal Canadian Mounted Police CAD 135.6 billion of assets under management as at 31 March 2017 PSP Investments manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. 22
Disclaimer This presentation was prepared in September 2017. No liability can be assumed for the correctness and/or completeness of the presentation. AviAlliance GmbH and the companies referred to in the presentation cannot accept any claims for liability regarding any errors, deficiencies or instances of incompleteness in this presentation or in any information provided in this connection. Please address inquiries to: AviAlliance GmbH Klaus-Bungert-Str. 5 40468 Düsseldorf Germany Tel: +49 211 20540-200 Fax: +49 211 20540-202 info@avialliance.com 23
Back-up 24
AviAlliance GmbH AviAlliance 100 % AviAlliance Capital 26.7 % 55.44 % 20 % 34.8 % 40 % Athens International Airport Budapest Airport Düsseldorf Airport Hamburg Airport San Juan Airport 13.3 % 10 % 14.2 % 25
Structure of AviAlliance GmbH Management Business development Operational competence Mergers & Acquisitions Investments & Financing Aviation Commercial and Property Activities Technical Services Athens International Airport Budapest Airport Düsseldorf Airport Hamburg Airport San Juan Airport Airport shareholdings 26
Our operational competencies Aviation Traffic forecast Airport and airline marketing Operational capacity assessment of functional areas incl. Check-in, security and customs Operating airport strategy IT system enhancement and business strategies Operational readiness and transfer Commercial and Property Activities Non-aviation development and management Business and spatial planning of commercial activities Retail, parking, advertising, property and business development Technical Services Strategic airport planning Capex estimation and optimization Construction Project Management Environmental strategies and assessments Land use planning Functional planning 27
Operational department Aviation Core competence of the department Traffic development (airline marketing, airport marketing, traffic forecasts) Aeronautical revenues (airport charges, incentive programs, regulation) Operational airport strategy (OPEX, restructuring, process efficiency, process optimization, service levels, transition programs) Commissioning (ensuring, maintaining and optimizing operational readiness) References ATH: Centralization of security BUD: Auditing all operational areas, reorganization, SkyCourt commissioning DUS: Reorganization, airline marketing strategy HAM: Model split traffic forecast 28
Operational department Commercial and Property Activities Core competence of the department Airport development and management in the nonaviation business: retail, food & beverage, real estate, parking, advertising Accompanies acquisition projects and supports holdings management in all non-aviation issues References ATH: Study on real estate development at European airports, terminal and retail development strategy DUS: Land acquisition and Airport City development, advertising strategy, parking strategy, commercial master plan and retail strategy HAM: Pier South and Airport Plaza, F&B strategy and tender, hotel development, parking strategy, terminal and retail development strategy 29
Operational department Technical Services Core competence of the department Planning, design and realization of greenfield and brownfield airports and airport facilities Structuring of investment and maintenance programs References ATH: Terminal development concept BUD: Planning and project management for Terminal 2 / SkyCourt, environmental advisory and noise protection program, sustainable energy concept, Master plan, planning and project management for Pier B (bud:2020 development program) DUS: Master plan, planning and environmental advisory HAM: Review of concept and tender for cargo center 30