Athens International Airport A successful PPP & attractive investment Konrad Adenauer Stiftung-IOBE Athens, January 24 th, 2013
AIA is a pioneer PPP greenfield project Hellenic Republic Asset Development Fund 30.00% Greek State 25.00% Ministry of Finance Ministry of Development, Competitiveness, Infrastructure, Transportation & Networks Hochtief Airport 26.67% Hochtief Airport Capital 13.33% Hastings Fund Mngt (Australia) Caisse de dépôt & placement du Québec (Canada) KfW-IPEX Bank (Germany) Copelouzos Family 4.99% 1996-2026 usufruct BOT contract (ADA) ADA ratified as Law 2338/95, provides for extension A 2.2 billion Euro Project, on-time and on-budget 60% funded by commercial debt User recovery principle 2
With State funding through EU Cohesion Fund at just 7% of total Project cost 60% funded by EIB and Commercial Loans Grants 701m Loans 1,325m EIB 997m Greek State Grant 150m EU Grant 250m ADF 301m Equity 180m Private Shareholder Equity 135m Private Shareholder Loan 45m Commercial Loan 328m EIB Loan (restructured in 2009): partly covered by Greek State guarantee Commercial Loan: (fully repaid) was covered by Hermes export credit guarantee 3
With sustainable revenue evolution and healthy cash position & profitability Revenues m 450 400 350 300 250 200 150 100 50 0 420.5 419.5 406.4 399.3 379.5 329.8 331.7 356.5 227.4 271.5290.8 163.7 243.9 267.0 220.5 124.9 176.8 145.8 99.3 105.8 104.0 94.6 125.7 149.6 152.5 158.5 129.5 28.9 14.3 29.0 47.1 61.8-9.6 Apr-Dec 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Revenues Closing cash PBT 2002-11 shareholder dividends 679 million 320 280 240 200 160 120 80 40 0-40 PBT & Closing Cash m 2001 10 month 2001-2005 PBT is based on GAAP 2006-2010 PBT is according to IFRS 2009 PBT & Revenues excluding once-off provisions impact of 112 m and 91.5 m respectively 4
, m Income for Greek State 871 mil; three times higher than private shareholders Total 2002-2011 1,169.4 m Greek State 871.4m Private 263.8 250 Shareholder 298.0 m 200 150 146.2 166.1 149.4 161.8 100 50 0 101.9 63.3 65.5 43.1 8.2 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Greek State Tax Greek State ADF Greek State Dividends Private Shareholders 5
From Infrastructure to Business Community Infrastructure Business Entity Airport Business Community Impact on Economy and Society 2 Runways 24hour operation 21 million passenger capacity Aeronautical 15 million passengers Business 4.9 million visitors Commercial Business 300 Companies Profitability 5,000 Suppliers CSR 15,000 Employees Worldwide recognition and consulting presence 6
An Airport City has been developed.with potential for more Train Station -2003/04 Leroy Merlin - 2006 IKEA & Electronics Store - 2004 Exhibition Centre - 2009 Factory Outlet - 2005 Cargo & Catering - 2001 Offices - 2001 Airport Hotel - 2001 Terminal Retail Area - 2001 7
with wider socio-economic impact A 2009 Study by Athens University of Economic & Business on the impact of Athens Airport on the Greek Economy Airport annually creates 4.89 billion economic added value from direct, indirect, induced and incremental tourism effects Airport creates more than 63,000 jobs on local, regional and national level Airport added value represents 2.14% of Greek GDP A large engine for economic growth and job creation in Greece 8
Lessons learned: key success factors The 5 Institutional Factors 1. Airport Development Agreement ratified by Law 2. Clearance of complex licensing from Airport Development Agreement 3. Change permits with one-stop-shop license through HCAA 4. and 35 days silent approval 5. Dispute resolution through LCIA The 5 Business & Governance Factors 1. Commercial Company of the private sector 2. Balanced Shareholder representation in BoD and GA decisions 3. New company from zero base with CEO proposed by private shareholders 4. Regulatory Framework in the ADA (right to set airport charges) 5. Appropriate funding and monitoring through EIB and political support during the critical development phase 9
Despite concession period limits, AIA remains an attractive investment opportunity Although concession period expires in 13 years, shareholders are willing to increase AIA s potential through Concession Period Extension Sale Process In combination with the airport s strong points Traffic & aero activities Commercial activities Regulation Infrastructure Financial Performance AIA remains an attractive investment opportunity