Athens International Airport
A successful airport in challenging times
Prof. Stratos Papadimitriou
Chairman of the Board of Directors
Setting-up a new airport
Athens International Airport (AIA) is located at “Mesoghia”
A central location
33 km from City Centre Between 3 ports
With well-established access
Modern motorway system Suburban rail and metro link Expanded bus transport
network
6
AIA is a pioneer PPP greenfield project
1996-2026 “usufruct” BOT contract (ADA)
ADA ratified as Law 2338/95, provides for extension A 2.2 billion Euro Project
60% funded by commercial debt
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%
Greek State 55.00%
• Ministry of Economy & Finance
• Ministry of Infrastructure, Transportation & Networks
User recovery principle
a new airport company created from “zero base”
a “commercial, profit-oriented company of the private sector”
run by a Board of Directors: (4) Private Shareholders, (4) Greek State , (1) Independent,
and CEO proposed by the private shareholders
with a wide corporate scope of commercial rights and services, with a right to set Airport charges “under the Dual Till” principle, with an option to be listed in the stock exchange
…and a novel private sector governance
One of the most modern airports in Europe
2 independent runways 24-hr operation
168 T m2 MTB, 34 T m2 STB 24 Contact Bridges
75 active remote positions
3 Maintenance Hangars
4 Cargo Facilities, 30+ T m2 3 Catering Facilities
24,000 m3 TF and HRS
53km External Fuel Pipeline
Starting-up successfully a new airport
+
Active
Infrastructure Manager
Airport Marketing
IT & T Provider
Defining a clear role of the Airport Company
11
Lean client-focused organisation designed on business units
C E O
Business Unit Aviation
Business Unit Consumers
Business Unit Property Business Unit
IT & T
Corporate Unit Finance &
Admin.
CFO
COO CDO
BoD
Security Services
Environmental
Communications &
Marketing Legal
Corporate Planning Corporate Control
Internal Audit
Human Resources Corporate
Quality Technical
Services
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12
Airline Services
101 Service Providers
Concessions Outsourcing
Terminal
Commercial Real Estate
Retail (17)
F&B (5)
Services (14)
Advertising (1)
Hotel (1)
Office Bldg (1)
Gasoline St. (1)
Retail Park (4)
Exhibition
Centre (1)
Security (3)
Fire & First Aid (2)
Maintenance &
Cleaning (7)
Waste (1)
Parking &
Transportation (2)
IT&T (3)
Total: 38 Total: 37 Total: 8 Total: 18
IF-Catering (2)
Cargo (4)
Fuel (3)
Ramp & Bagg.
Handling (5)
Pax Handling (7)
Ancillary (17)
…supported by a concession & outsourcing business model
Payroll: 687 Outsourced: 1100 Concessed: 7500 Total: 9300
7% 12% 81% 100%
Running an Airport Profitably
Value for Money Services
Accelerate Profitable Growth
Development of Current Traffic The Low-cost Carrier Strategy The Regional Development
Strategy Aeronautical
Commercial Terminal Development Real Estate Development
IT&T Expansion Non-Aeronautical
Based on a solid customer focused strategy
15.4 14.5 16.5 16.2
10.2 11.8 12.2
13.7
14.3
15.1
16.5
1,503 1,400
1,352
995 990 1,056 1,149
1,232 1,314 1,423 1,435
9 10 11 12 13 14 15 16 17 18
Apr-Dec 2001
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 0 200 400 600 800 1,000 1,200 1,400 1,600
AIA Traffic Europe Traffic
15
Demonstrating strong traffic performance until 2008
ΑΙΑ Pax, million
AIA 2002-7
CAGR 6.9% AIA
-0.4%
Europe +0.7%
From 2008 onwards, the recession -with different timing vs. Europe- affects AIA traffic
Greek financial crisis impacts AIA from 2010
AIA -1.5%
Europe -5.5%
2008:
Recession starts/High
fuel prices
EuropePax, million
European airports 2001-7
CAGR 6.1%
2010:
Europe exits recession/Gr eek financial
crisis 2009:
Europe in recession
AIA -5.0%
Europe +3.6%
2011:
Greece in deep recession
AIA -6.2%
Europe +7.3%
16
379.5 406.4
419.5 420.5
227.4 271.5290.8 329.8 331.7 356.5 399.3
28.9
267.0 220.5
176.8 145.8 99.3
124.9 105.8 104.0
243.9 163.7
129.5
-9.6 14.3 29.0 47.1 61.8
94.6 125.7 149.6 152.5 158.5
0 50 100 150 200 250 300 350 400 450
Apr-Dec 2001
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-40 0 40 80 120 160 200 240 280 320
Revenues Closing cash PBT
With continuous revenue and profit growth and healthy cash position
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
PBT &
Closing Cash m €
2002-11 shareholder dividends €679 million
Revenues m €
17
At the top of European airports benchmark
At top-3 of European airports in revenue generation
In addition to high aero revenues…
…AIA also excels in commercial activities
Revenues per Passenger
0.0 8.0 16.0 24.0 32.0
Paris Heathrow Athens Oslo Zurich Amsterdam Brussels BAA Group Copenhagen Vienna Berlin Milano Geneva ANA Stockholm Roma AENA
SDR / Pax
Total Revenues / Passenger Average Notes:
- Figures as per 2009 financial year
- For Athens, 2009 exludes extraordinary items Source: Leigh Fisher Airport Performance Indicators 2011
Non Aeronautical Revenue per Passenger
0.0 3.0 6.0 9.0 12.0 15.0
Oslo Heathrow Paris Athens BAA Group Berlin Brussels Zurich Copenhagen Amsterdam Geneva Milano Vienna ANA Roma Stockholm AENA
SDR / Pax
Non Aero Revenue per Passenger Average
Source: Leigh Fisher Airport Performance Indicators 2011 Notes:
- Figures as per 2009 financial year - For Athens, 2009 exludes extraordinary items
18
…with first position in profitability
AIA offers value-for- money services…
…maintaining cost competitiveness
High performance in all value drivers…
…leads to No 1
position in profitability
Operating Expenses per Passenger
0.0 5.0 10.0 15.0 20.0
Heathrow Paris Amsterdam Berlin BAA Group Zurich Oslo Brussels Geneva Milano Vienna Athens Copenhagen Stockholm ANA Roma AENA
SDR / Pax
Operating Expenses / Passenger Average Source: Leigh Fisher Airport Performance Indicators 2011 Note
Figures as per 2009 financial year
EBITDA per Passenger
0.0 5.0 10.0 15.0 20.0
Athens Paris Oslo Zurich Brussels Copenhagen BAA Group Heathrow Vienna Amsterdam ANA Milano Roma Stockholm Geneva Berlin AENA
SDR / Pax
EBITDA / Passenger Average Source: Leigh Fisher Airport Performance Indicators 2011 Notes:
- Figures as per 2009 financial year - For Athens, 2009 exludes extraordinary items
19
Restructured EIB loan & early loan repayments to lower debt costs
€, m
0 200 400 600 800 1000 1200 1400
Initial Repaid April 2012
Shareholder Loan Commercial Loan EIB
€997 m €678 m
€328 m
Total
€1,370 m
€45 m
Repaid by 2005
€328 m
€319 m Restructured with
EIB in 2009 Repaid by 2008
0 50 100 150 200 250
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Greek State Tax Greek State Dividends Greek State ADF Private Shareholders
Income for Greek State €871 mil; three times higher than private shareholders
Total 2002-2011 €1,169.4 m
8.2
43.1
63.3 65.5
101.9
146.2
166.1
263.8 Greek State
€871.4m Private
Shareholder
€298.0 m
€, m 149.4
161.8
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4444 23232323 2012201220122012
One of the most renowned airports worldwide for its operational and business excellence
“Value for Money” strategy:
Ample Capacity (>21 mio pax) with potential to expand up to 50 mio pax
24-hour operation in state-of the-art facilities with no curfews and fast turnaround times Only medium/large Schedule Facilitated European airport
Effective aeronautical strategy with 67 operating airlines serving 106 destinations High Quality Passenger Services
Proven Operational Excellence (e.g. 2004 ATH OG, 2007 Champions League) No operational disruptions, No industrial action
Exporting its know-how to other airports, e.g. Sydney, Beijing, Amman, Budapest, Dubai, Abu Dhabi, Tirana, Dusseldorf, Hyderabad, Astana, Warsaw, Singapore, 5 Greek Airports
30 awards and distinctions in 10 years of operations
in all aspects of airport business
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The Economic Impact
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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 Business
Commercial Business Profitability
CSR
15 million passengers 4,9 million visitors 300 Companies 5,000 Suppliers 15,000 Employees
Offices - 2001 Cargo & Catering
2001
Terminal Retail Area 2001
Train Station 2003/04
Airport Hotel 2001 Factory
Outlet -2005
IKEA & Electronics Store 2004
Leroy Merlin
2006 Exhibition Centre - 2009
8MW PV Park 2011
An Airport City has been developed…
….with potential for more
25
IT&T Network
Energy Network Waste
Management System
Industrial Waste Treatment
Facility
Sewage Treatment
Plant
…an Airport Community under a single utility system
26
…with wider socio-economic impact
A 2009 Study by Athens University of Economic & Business on the impact of Athens Airport on the Greek Economy
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Addressing Current Challenges
Current circumstances pose new challenges…
Privatised Olympic and Aegean announced merge rejected by EU Airlines consolidating their network
Pros and cons of non-merge: Lower airport home carrier dependence vs. doubtful sustainability of two carriers
Developments in Athens aviation market
Impact on Greek travellers’ traffic demand & business travel EU/ECB/IMF pressure on production costs & prices
Athens retail & property market Athens city destination profile
Greek economy crisis
How does the Airport Company respond?
Macroeconomic Environment
Athens Aviation
Market
II. Reduce operating costs
III.
Optimise investments
IV. Maintain service level I. Defend
Revenues
Outsourcing strategy
3rd party costs reduction exercise in 2008-11 with 18% opex savings
Staff reduced since 2008 through attrition and non-replacement
II. Reducing operating expenses
Aero revenues: defending volumes, protecting margins
Commercial revenues: retain high share (40% of revenues – 65%
of profits)
I. Defending revenues
In a low-growth environment, costs become a major value driver
Value-for-money services a key strategy
AIA unique model for service level monitoring
IV. Maintaining service level
“Sweating the assets”
Investing in value-adding activities: 8MW Photovoltaic park, External business activities
III. Optimizing investments
Adapting to changes: flexibility in investment planning necessary
AIA remains an attractive investment opportunity
Despite areas of investors’ concern…
Traffic & aero activities
Commercial
activities Regulation Infrastructure Financial Performance
…AIA demonstrates strong points and constitutes an attractive investment opportunity
Concession Extension
To be further enriched…
Concession period
Macro environment
