Paris, 13 March 2008 Aéroports de Paris 2007 consolidated annual results Dividend proposal to be submitted to the Annual General Meeting: 1.63 euro per share Strong growth in all of the Group's business segments Revenues increase 10.4% to 2,292.4 million EBITDA rises 13.5% to 754.4 million Group net income 1 rises 19.2% to 239 million Outlook: Aéroports de Paris has raised its 2010 EBITDA growth target to 60% from the 2005 level Pierre Graff, Chairman and CEO of Aéroports de Paris, comments: "The Group s performance improved strongly in 2007, buoyed by strong passenger traffic growth, robust retail and real-estate revenues and the rapid expansion of our subsidiaries business. I would like to take this opportunity to salute the women and men of Aéroports de Paris: it is through their mobilisation that we were able to achieve this performance. The Group is in excellent health, confirming the pertinence of our strategy. We are confident in 2008 and have raised our 2010 EBITDA growth target to 60% (from the 2005 level), compared to our previous guidance of 45% to 50%, announced during our 2006 IPO." 1 Before non-recurring items 1
KEY FIGURES 2007 2006 % change (in millions of euros) Revenues 2,292.4 2,076.8 +10.4% EBITDA 754.4 664.7 +13.5% Current operating income 442.1 390.9 +13.1% Reported group net income 321.8 152.1 +111.5 % Group net income before non-recurring items 239.0 200.6 +19.2% Earnings per share 3.25 1.64 +98.2% Proposed dividend per share 1.63 0.94 +73.4% Group net income is presented both before and after non-recurring items. In 2006, virtually all nonrecurring items pertained to the June 2006 IPO. In 2007, non-recurring items covered mainly the proceeds from the sale of shares in Beijing Capital International Airport Company Limited (BCIA) and reorganization provisions for the ground handling activity. Unless indicated otherwise, all percentages in this press release compare 2007 data with data from 2006. 2
I. GROUP RESULTS Strong growth in all of the Group's business segments The year 2007 was marked by strong revenue growth, up 10.4% to 2,292.4 million. Revenues rose significantly more than passenger traffic, up 4.7%, buoyed by robust retail and real-estate revenue growth of 9.1% and 10.5%, respectively. Other activities, which comprise Group subsidiaries and the joint venture Société de Distribution Aéroportuaire (SDA), are flourishing, with revenues up 44.4%. EBITDA continued to rise strongly, up 13.5% to 754.4 million in 2007, thanks to tight control over current operating expenses (+8.5%): - Personnel expenses rose a slight 0.6% to 652.2 million. The number of parent company employees declined by 1.6% reflecting efforts to boost productivity and the ongoing decrease in personnel in the ground handling services of Aéroports de Paris SA. Subsidiaries increased staff by 21.1%, mainly to keep pace with the rapid growth in business. The total number of Group employees increased 5.2%. - External services increased 10.6% to 580.2 million euros. Outsourcing, the main component, increased due to the opening of La Galerie Parisienne on 27 June 2007 (passenger screening and security checkpoints), tighter security measures introduced in November 2006 and the vigorous development of the engineering subsidiary ADPi. - Purchases increased 21.2% to 147.3 million. This increase can be attributed entirely to the joint venture Société de Distribution Aéroportuaire (SDA) due to the expansion of its scope of activity to Paris-CDG Terminal 3 as of 1 November 2006 and to the two terminals at Paris-Orly as of 1 January 2007. - Taxes increased 13.2%. The Group's strategy of combining revenue growth and higher margins in all its business segments has paid off, as illustrated by the strong EBITDA growth over the past two years, up 11% in 2006 and 13.5% in 2007. In the light of these strong performances, Aéroports de Paris has raised its 2005-2010 EBITDA growth target to 60% from its initial guidance of between 45% and 50% announced at the time of the June 2006 IPO. Thanks to the combined impact of strong revenue growth and a smaller increase in current operating expenses, the gross margin (EBITDA/revenue) gained 0.9 points to 32.9% in 2007 from 32% in 2006. 3
Current operating income rose 13.1% to 442.1 million. The substantial increase in depreciation and amortization, up 14.1% to 312.4 million, is due to the start-up of major new facilities in 2007, including the Galerie Parisienne, the East baggage sorting system (TBE) and the CDG Val automatic shuttle, the renovation of the second quarter of Paris-CDG Terminal 1, and the full-year impact of services opened in 2006. Net finance income was 24.2 million in 2007, compared to a net charge of 84.5 million in 2006. This net improvement reflects the 109.8 million profit on the disposal of shares in Beijing Capital International Airport Company Limited (BCIA) held by Aéroports de Paris Management (ADPm). The cost of gross debt ( 102.7 million) was virtually flat (- 0.4 million) due to two opposing factors: the reduction in finance charges following the repayment of three loans (two in 2006 for a total of 306 million and a 68 million loan in 2007) and higher interest rates. Cash and cash equivalents generated a gain of 18.2 million, up 3.1 million. Another strong increase in Group net income, up 19.2% before non-recurring items In 2007, reported Group net income increased 111.5% to 321.8 million compared to the previous year. Excluding non-recurring items, net income rose 19.2% to 239 million, in line with the 2006 performance of 19.6%. In 2006, the adjustments for non-recurring items 2 mainly pertained to the opening of the share capital: eliminating 52.8 million in IPO expenses. In 2007, the main adjustments for non-recurring items 2 consisted of eliminating: - the 109.8 million profit on the disposal of BCIA shares, - the 36.1 million reorganization charge for the ground handling segment, - 2.6 million in charges following the Terminal 2E accident, - the impact of the above points on income tax: by subtracting 11.8 million. 2 The amounts of non-recurring items are indicated before impact on income tax 4
II. OPERATING PERFORMANCE BY SEGMENT Buoyant passenger traffic and strong retail growth lifts airport services Revenues from airport services increased 6.4% to 1,836.9 million in 2007, thanks to robust passenger traffic growth during the year, higher airport fees as of 1 April 2007 and strong growth in commercial revenues. Altogether, 7,442 sqm in new retail areas were opened in 2007, bringing the total retail surface area in the Paris-Charles de Gaulle and Paris-Orly airports to 42,466 sqm, up 21.1% compared to 2006. EBITDA increased 11.7% to 726.5 million thanks to tight control over expenses. The gross margin improved to 39.6% in 2007 from 37.7% in 2006. Current operating income rose 8.6% to 462.7 million. The current operating margin also improved to 25.2% in 2007, from 24.7% in 2006. New projects drive real estate segment Real estate revenues rose a healthy 10.5% to 194.2 million in 2007, thanks to a combination of factors: - Higher rents, indexed to the cost of construction index, up 7.05% as from 1 January 2007, - The full-year impact of new surface areas leased in 2006 (Air France Maintenance Hub, West Maintenance Hub for the future A380 and the Fedex logistics centre at the Paris-Charles de Gaulle airport), - The start-up of marketing for the new GB2 cargo station at the Paris-Charles de Gaulle airport, accompanied by the leasing of additional surface areas in the GB4 cargo station, - Renegotiation and regularisation of certain rates. Current operating expenses rose 13.2% in the real estate segment. This figure includes the negative impact of the impairment of receivables (- 14.8 million) following the revision of the payment schedule for a finance lease agreement for a hangar at Orly, in compliance with IAS 17 on leases. Excluding this temporary effect, EBITDA would have increased 24%, and the gross margin would have been 49.3%, 5.3 points higher than in 2006. Reported EBITDA rose 4.8% and the reported gross margin was 41.7% in 2007 and 44% in 2006. Current operating income rose 12.2% to 49 million in 2007. The current operating margin gained 0.3 points to 25.2% in 2007, from 24.9% in 2006. 5
Ground handling services: the situation levels off in the midst of reorganization Ground handling and related services generated revenues of 195.3 million in 2007, up 10.3% from the previous year. All activities contributed to this strong performance (ground handling, security and other services). Revenues from ground-handling services rose 8.3%, lifted by new contracts signed in a fiercely competitive environment, notably with Vueling, Varig, Fly Niki and BMI Baby at the Paris-Charles de Gaulle airport and with TUI at the Paris-Orly airport. In 2007, the EBITDA loss narrowed to 9.3 million from 14.3 million in 2006. The gross margin improved but remained in negative territory at 4.8% of sales in 2007, compared to -8% in 2006. The current operating loss narrowed by 31.7% to 11.9 million, compared to a 2006 loss of 17.4 million. The current operating margin improved to -6.1% in 2007 from -9.8% in 2006. The reorganization plan for the ground-handling segment was launched on 27 September 2007 Following the process of notifying and consulting the Works Council, on 27 September 2007, the Board of Directors of Aéroports de Paris decided to integrate all of the ground handling activities in the airport services segment into a single subsidiary, 100%-owned by Aéroports de Paris SA. To ensure the viability of these activities and to reach breakeven in terms of current operating income by 2009, the Group also plans to significantly reduce the deficit in 2008. The reorganisation plan and related social-support measures for parent company employees (career guidance interviews) have been set up very rapidly. Subsidiaries of the Alyzia Group 3, excluding the Alyzia Sûreté (Security) subsidiary, were broken up and merged in December 2007 into a subsidiary renamed Alyzia. The mobility of parent company employees will be gradually implemented between January 2008 and June 2009. Rapid expansion of subsidiaries and the Société de Distribution Aéroportuaire joint venture Other activities, which comprises subsidiaries and the joint venture Société de Distribution Aéroportuaire (SDA), generated revenues of 326.9 million in 2007, up 44.4%. EBITDA for this segment increased 16.8% to 35.7 million in 2007, compared to 30.6 million in 2006. 3 To date, excluding Sapser 6
Current operating income rose 22.4% to 21.5 million, compared to 17.5 million in 2006: - The contribution of Société de Distribution Aéroportuaire (SDA) rose 151.6% to 10.4 million thanks to strong business throughout the year, in addition to a positive consolidation effect on revenues of 46.7%. - Hub Telecom 4 contributed 7.6 million, up a slight 1.1% compared to the previous year. - The contribution of ADPi, the engineering subsidiary, rose 181.3% to 3.5 million, stimulated by numerous new engineering, architecture and project management contracts in Libya, Saudi Arabia, the Sultanate of Oman, Pakistan and Colombia in 2007. - The contribution of Aéroports de Paris Management rose 3.6% to 0.8 million. 4 including BGI Technology 7
III. FINANCIAL HIGHLIGHTS AND OUTLOOK Balance sheet Group net debt narrowed slightly to 1,782 million in 2007 from 1,859.7 million in 2006, due in part to a slight reduction in gross debt, down 3.1% to 2,353.5 million in 2007 (vs 2,428.7 million in 2006) and in part to the stability of net cash ( 4.7 million increase in net cash in 2007), thanks notably to the collection of proceeds on the disposal of the BCIA stake ( 189.9 million). The net debt to equity ratio narrowed to 0.60 from 0.67 in 2006. The net debt to EBITDA ratio also improved to 2.4 from 2.8 in 2006. Outlook for 2008 Aéroports de Paris esteems that passenger traffic at its two main Paris-based airports will grow in 2008 at a pace close to the 3.75% assumption in the Economic Regulation Agreement (ERA), and that passenger traffic growth should be in line with the ERA assumption for the period 2008-10. Airport fees are slated to increase by an average of 3.80% on 1 April 2008, the beginning of the third fee period set by the ERA, which runs through 31 March 2009. The airport security tax will be maintained at the 2007 level of 8.75 per departing passenger and 1 per ton of cargo or mail. Based on these factors, Aéroports de Paris expects that revenue and EBITDA will growth substantially faster than passenger traffic in 2008. Consequently, the Group has raised its 2010 EBITDA growth target, in absolute value, to 60% (from 2005 EBITDA of 598.6 million), compared to its previous guidance of 45% to 50% announced as part of the 2006 IPO. Dividend proposal to be submitted to the Annual General Meeting At its 12 March 2008 meeting, the Aéroports de Paris Board of Directors decided to ask the Annual General Meeting of 28 May 2008 to approve a dividend payment of 1.63 per share for the year 2007. Pending approval by the Annual General Meeting, the dividend payment date would be 11 June 2008. 8
In compliance with applicable regulations, the dividend qualification date would be 6 June 2008. This dividend corresponds to 50% of Group net income for the year 2007, in line with the Group's dividend distribution policy. This 73% increase from the 2006 dividend, paid in 2007, reflects in part the positive but non-recurring impact of the profit on the disposal of BCIA shares. - - - Live and replay webcast of the analysts meeting A webcast of the full-year earnings presentation will be broadcast live at 10:30 am on 13 March 2007 and rebroadcast thereafter at the following address: http:///adp/en-gb/groupe/finance/ All of the information published today, 13 March 2008, can be viewed on our website:. - Press release (also including the announcement of the 2007 dividend proposal): http:///adp/en- GB/Groupe/Finance/CommunicationPresse/JanvierJuin2008/ - Analysts presentation and 2007 consolidated financial statements and appendix: http:///adp/en- GB/Groupe/Finance/Publications/Results+and+Revenues/ AGENDA: Publication of first-quarter 2008 revenues: 14 May 2008 Combined ordinary and extraordinary General Meeting of shareholders: 28 May 2008 at 3 p.m. at the Cité des sciences et de l'industrie Warning concerning forward-looking statements Forward-looking statements are included in the above press release. They are based on data, assumptions and estimates deemed sensible by Aéroports de Paris. They notably include information regarding the financial condition, results of operations and business of Aéroports de Paris. These forward-looking statements include risks (a list of which can be found in the reference document filed on April 27, 2007 with the French financial markets authority (AMF) under the number R. 07-047) and uncertainties, many of which cannot be controlled by Aéroports de Paris and cannot be easily predicted. They can lead to results substantially different from the information included in the forward-looking statements. 9
APPENDIX Results by segment AIRPORT SERVICES In millions of euros 31/12/07 31/12/06 % change Revenues 1,836.9 1,726.4 +6.4% EBITDA 726.5 650.4 +11.7% Current operating income 462.7 426.2 +8.6% REAL ESTATE In millions of euros 31/12/07 31/12/06 % change Revenues 194.2 175.7 +10.5% EBITDA 80.9 77.2 +4.8% Current operating income 49.0 43.7 +12.2% GROUND HANDLING AND RELATED SERVICES In millions of euros 31/12/07 31/12/06 % change Revenues 195.3 177.1 +10.3% EBITDA -9.3-14.3 +34.7% Current operating loss -11.9-17.4 +31.7% OTHER ACTIVITIES In millions of euros 31/12/07 31/12/06 % change Revenues 326.9 226.3 +44.4% EBITDA 35.7 30.6 +16.8% Current operating income 21.5 17.5 +22.4% 10
Consolidated income statement In millions of euros 31/12/07 31/12/06 Revenue 2,292.4 2,076.8 Other ordinary operating income 19.8 28.7 Own work capitalized 41.1 43.3 Changes in finished goods inventory (0.1) (0.2) Raw materials and consumables used (147.3) (121.6) Employee benefits costs (652.2) (648.1) Other ordinary operating expenses (795.9) (701.1) Depreciation and amortization (312.4) (273.9) Impairment of assets, net 1.3 25.3 Net allowances to provisions (4.7) (38.5) Change in fair value - - Operating income from ordinary activities 442.1 390.9 Other operating income and expenses (38.7) (57.0) Operating income 403.3 333.9 Finance income 274.6 71.4 Finance expenses (250.4) (155.9) Net finance income (costs) 24.2 (84.5) Share in earnings of associates 1.9 3.6 Income before tax 429.4 253.0 Income tax expense (107.6) (100.8) Net income for the period 321.8 152.1 Net income attributable to minority interests - - Net income attributable to equity holders of the parent company 321.8 152.1 Earnings per share (EPS) attributable to holders of ordinary shares of the parent company: Basic EPS (in euros) 3.25 1.64 Diluted EPS (in euros) 3.25 1.64 11
Consolidated balance sheet Assets In millions of euros 31/12/07 31/12/06 Intangible assets 48.8 36.7 Property, plant and equipment 5,232.1 4,838.9 Property investments 274.3 284.2 Investments in associates 30.4 20.2 Other non-current financial assets 58.4 242.0 Deferred tax assets 2.0 1.4 Non-current assets 5,645.9 5,423.5 Inventories 10.0 7.5 Trade receivables 478.2 401.1 Other accounts receivable and prepaid expenses 104.8 115.2 Other current financial assets 72.9 84.3 Current tax assets 0.2 0.7 Cash and cash equivalents 524.1 509.2 Current assets 1,190.2 1,117.8 TOTAL ASSETS 6,836.1 6,541.4 Stockholders' funds and liabilities In millions of euros 31/12/07 31/12/06 Share capital 296.9 296.9 Share premium 542.7 542.7 Treasury shares (3.7) - Translation reserve (1.3) (0.2) Fair value reserve - 70.7 Retained earnings 1,795.5 1,724.5 Net income for the period 321.8 152.1 Equity 2,952.0 2,786.8 Non-current debt 2,030.5 2,270.4 Provisions for employee benefit obligations (more than one year) 386.0 388.4 Other non-current provisions 0.2 0.4 Deferred tax liabilities 86.3 74.0 Other non-current liabilities 32.4 33.1 Non-current liabilities 2,535.3 2,766.3 Trade payables 507.3 411.2 Other prepayments and deferred revenue 387.8 309.1 Current debt 323.0 158.3 Provisions for employee benefit obligations (less than one year) 25.6 29.9 Other current provisions 83.1 71.5 Current tax payables 21.8 8.3 Current liabilities 1,348.7 988.3 TOTAL EQUITY AND LIABILITIES 6,836.1 6,541.4 12
Consolidated cash flow statement In 2006, cash flows were restated to take account of the lag between the booking of expected insurance indemnities in connection with the Terminal 2E accident and the effective crediting of such amounts. In millions of euros 31/12/07 31/12/06 Operating income 403.3 333.9 Adjustment for non-cash income and expenses: - - - Depreciation and amortization, impairment and net allowances to provisions 335.4 328.8 - Capital losses (gains) on disposals 1.6 (1.5) - Cost of employee benefits as part of the employee profit-sharing offer - 33.3 - Other 1.8 0.4 Time lag in receipt of insurance payments for Terminal 2E - 41.4 Interest expense other than cost of net debt (2.2) (0.4) Operating cash flow before changes in working capital and tax 740.0 735.9 Increase in inventories (2.1) (1.5) Increase in trade and other receivables (64.1) (6.9) Increase (decrease) in trade and other payables 113.7 (65.3) Change in working capital 47.6 (73.6) Income taxes paid (87.1) (110.6) Cash flows from operating activities 700.4 551.8 Acquisitions of subsidiaries (net of cash acquired) (3.4) (0.0) Purchase of property, plant & equipment and intangible assets (732.1) (712.5) Acquisition of non-consolidated equity interests (1.2) (10.0) Change in other financial assets 18.1 2.8 Proceeds from sale of property, plant & equipment 6.0 147.7 Proceeds from sale of non-consolidated investments 189.9 0.3 Dividends received 1.5 3.2 Increase in capital investment payables 78.4 13.1 Cash flows from investing activities (442.8) (555.5) Capital grants received (repaid) in the period 1.1 1.5 Proceeds from issues of shares or other equity instruments (0.0) 583.5 Purchase of treasury shares, net (3.7) - Dividends paid to shareholders of the parent company (93.0) (63.2) Proceeds on issuance of long-term debt 3.8 6.6 Repayment of long-term debt (78.2) (316.2) Interest paid (160.6) (151.1) Interest received 77.6 64.5 Cash flows from financing activities (252.9) 125.6 Change in cash and cash equivalents 4.7 121.8 Net cash and cash equivalents at beginning of period 503.1 381.3 Net cash and cash equivalents at end of period 507.8 503.1 13