Athens International Airport A successful airport in challenging times Prof. Stratos Papadimitriou Chairman of the Board of Directors
Athens International Airport
A successful airport in challenging times
Prof. Stratos PapadimitriouChairman of the Board of Directors
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
+
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 UnitAviation
Business UnitConsumers
Business UnitProperty
Business UnitIT & T
Corporate Unit
Finance & Admin.
CFOCOO CDO
BoD
Security Services
Environmental
Communications &
Marketing
Legal
Corporate Planning
Corporate Control
Internal Audit
Human Resources
Corporate Quality
TechnicalServices
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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%
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
14.515.416.2
16.5
10.2 11.812.2
13.714.3
15.1
16.5
1,5031,400
1,352
995 9901,056
1,1491,232
1,3141,423 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, m
illio
n
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
Euro
pe
Pax, m
illion
European airports 2001-7 CAGR 6.1%
2010:Europe exits recession/Greek financial
crisis
2009:Europe in recession
AIA-5.0%
Europe +3.6%
2011:Greece in deep
recession
AIA-6.2%
Europe +7.3%
16
379.5406.4419.5420.5
227.4271.5
290.8329.8 331.7 356.5
399.3
28.9
267.0220.5
176.899.3145.8
124.9
105.8 104.0
243.9163.7
129.5
-9.614.3 29.0 47.1
61.894.6
125.7149.6 158.5152.5
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 month2001-2005 PBT is based on GAAP2006-2010 PBT is according to IFRS2009 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
NoteFigures 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 mRestructured 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
43.163.3 65.5
101.9
146.2
166.1
263.8
Greek State
€871.4m Private
Shareholder
€298.0 m
€, m
149.4161.8
21////////44 44 2323 2323 20122012 20122012
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
23
From Infrastructure to Business Community
Infrastructure Business EntityAirport 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 - 2001Cargo & 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 NetworkWaste
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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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 InfrastructureFinancial
Performance
� …AIA demonstrates strong points and constitutes an
attractive investment opportunity
Concession Extension
� To be further enriched…
Concession period
Macro environment