Please note the statutory confidentiality requirements concerning information that each party may study in conjunction with the consultation in compliance with the Swedish Act on Airport Charges. Swedavia’s Consultation Process – Airport Charges 2015 Charges & Regulations Manager Meeting 1 September 24th 2014 Presenter TNC Charge Göteborg Landvetter Airport Main Presenters Consultation Process Presenters Stockholm Arlanda Airport Elisabeth Sallfeldt ATM Manager Karl Wistrand Karl Johnsson Kjell-Åke Westin Hedda Ulfsdotter Vice Executive President Charges & Regulations Manager Airport Director, Stockholm Arlanda Airport Representatives – Swedavia Strategic Program Leader, Development Program Arlanda External Presenter Elin Lewold Lennart Bergbom Susann Svenningsson Eva Danielsson Börje Spong Mats Påhlson Niklas Johansson Director of Strategy Legal Counsel Charges Coordinator Investment Manager Chief Financial Officer Product Manager Aviation Business Special Advisor, Division for Corporate Governance & Analysis Ministry of Finance, Government Offices 2 Consultation Process – Airport Charges 2015 Agenda – Meeting 1 – September 24th Introduction Time 12.30 - 12:45 pm Part I – Implementation of TNC Charge at Göteborg Landvetter (implementation Jan 1st 2015) 12:45 - 1:00 pm Part II – Main Consultation Process for Airport Charges 2015 (implementation April 1st 2015) 1:00 - 5:00 pm 1. Background • Summary of Last Year’s Consultation Process and Decision for Airport Charges 2014 • Properties of Swedavia’s Price Model • Financial targets for state-owned companies (External presentation, Ministry of Finance) 1:00 - 1:30 pm 2. Investment plans – Consolidated for the Network 1:30 - 3:00 pm Coffee break 3:00 - 3:30 pm 3. Swedavia’s Total level of Airport Charges • New Economic Targets for Swedavia • Development of Cost & Revenue for Swedavia’s Airport Operation • Traffic Forecast 2014-2015 • Proposal of Adjustment of the Total Charge Level 3:30 - 5:00 pm Agenda – Meeting 2 – October 29th 4. Proposed Changes of Structures & Levels of Individual Charges • Swedavia´s Airport Network • Charges structure & Cost Allocation Principles • Aviation Product Management / Service Level Agreements • Capacity Needs & Investment plans • Proposal for Swedavia’s Airport Charges: o Passenger, Take-off, Emission, Noise, Terminal Navigation & Aircraft Parking Charges • Proposal for Swedavia’s Other Charges: o Ground Handling Infrastructure Charges & Assistance Service Charge (PRM) 5. Swedavia’s Incentive Program 2015 6. Summary of Swedavia’s Proposal 3 3 Introduction – The Consultation Process Consultation meeting 1 24 September Consultation meeting 2 29 October 1st proposal Airport Charges 2015 Final proposal Airport Charges 2015 Final proposal New TNC Charge at Göteborg Landvetter Airport 1 Sep New TNC Charge at Göteborg Landvetter Airport takes effect Jan 1st 1 Oct 1 Nov External Communication - Final Decision New TNC Charge Göteborg Landvetter Airport 1 Dec 1 Jan 1 Feb Airport Charges 2015 take effect April 1st 1 Mar 1 Apr 1 May External Communication - Final Decision Airport Charges 2015 4 Introduction – The Consultation Process • More information about Swedavias Conditions of Services and Charges: http://www.swedavia.com/our-services/aviation-business1/swedavias-conditions-ofservices-and-charges/ • General information about Swedavia’s Consultation Process for Airport Charges 2015. 5 Introduction – The Consultation Process • A new website for participants of Swedavia’s Consultation Process for Airport Charges 2015: http://www.swedavia.com/charges • All material presented during the process will be available here such as Presentations, Minutes of Meetings, Documents with Formal comments, Final decisions etc. • Please note the statutory confidentiality requirements, according to Directive 2009/12/EC of the European Parliament and of the council of 11 March 2009 on airport charges article 7 p 3 and the Swedish Aviation Act on airport charges paragraph 14 subsection 1, concerning information that each party may study in conjunction with the consultation process. 6 Introduction – The Consultation Process Challenges & Risks in the Aviation Market • • • • Lack of Capacity & Investments Needs following Large Traffic Growth Tough Competition & Decreasing Yields in the Market Stockholm Arlanda Airport’s Environmental Permit Sweden’s increased Dependence on Visitors and International Markets • Political uncertainties; nationally & internationally: Increased Tax Pressure; less disposable income Airport Taxes; decreased demand Increasing number of crisis regions in the world Swedavia’s proposal is subject to changes depending on market development during the autumn Consultation Process – Airport Charges 2015 Agenda – Meeting 1 – September 24th Introduction Time 12.30 - 12:45 pm Part I – Implementation of TNC Charge at Göteborg Landvetter (implementation Jan 1st 2015) 12:45 - 1:00 pm Part II – Main Consultation Process for Airport Charges 2015 (implementation April 1st 2015) 1:00 - 5:00 pm 1. Background • Summary of Last Year’s Consultation Process and Decision for Airport Charges 2014 • Properties of Swedavia’s Price Model • Financial targets for state-owned companies (External presentation, Ministry of Finance) 1:00 - 1:30 pm 2. Investment plans – Consolidated for the Network 1:30 - 3:00 pm Coffee break 3:00 - 3:30 pm 3. Swedavia’s Total level of Airport Charges • New Economic Targets for Swedavia • Development of Cost & Revenue for Swedavia’s Airport Operation • Traffic Forecast 2014-2015 • Proposal of Adjustment of the Total Charge Level 3:30 - 5:00 pm Agenda – Meeting 2 – October 29th 4. Proposed Changes of Structures & Levels of Individual Charges • Swedavia´s Airport Network • Charges structure & Cost Allocation Principles • Aviation Product Management / Service Level Agreements • Capacity Needs & Investment plans • Proposal for Swedavia’s Airport Charges: o Passenger, Take-off, Emission, Noise, Terminal Navigation & Aircraft Parking Charges • Proposal for Swedavia’s Other Charges: o Ground Handling Infrastructure Charges & Assistance Service Charge (PRM) 5. Swedavia’s Incentive Program 2015 6. Summary of Swedavia’s Proposal 8 8 Implementation of TNC Charge at Göteborg Landvetter Airport Background The new EU regulations implementing a Charging Scheme (EU 3912013) and a Performance Scheme (EU 390-2013) for air navigation services for the second reference period (years 2015 to 2019) include a new limit for a possible national exemption. The new limit is 70 000 annual IFR movements, replacing the previous limit of 50 000 annual commercial movements. The Swedish Transport Agency has decided (TSL 2013-6252) to continue to exempt smaller airports in Sweden from the regulations above, according to the new limit of 70 000 annual IFR movements. This decision implies that Gothenburg Landvetter will also be exempted as from 2015 (as an airport with approximately 60 000 IFR movements annually). Swedavia will start to administrate the TNC Charge for Gothenburg Landvetter as of Jan 1st 2015, with the intention to integrate it in the common charging system for Swedavia’s airport network. 9 Implementation of TNC Charge at Göteborg Landvetter Airport Initial proposal Swedavia intends to maintain the TNC Charge at Gothenburg Landvetter self-financed, similar to the principle of the EU Charging Scheme, to cover the costs for ATM Infrastructure & Service, CNS Equipment and MET Services at the airport. Further, by maintaining the same charge structure as within the Charging Scheme (using a power function, with a unit rate multiplied by MTOW/50 to the power of 0.7) Swedavia will avoid major changes for the airport users at Gothenburg Landvetter. With this proposal the Terminal Charge will have the same structure at all of Swedavia’s three largest airports; Stockholm Arlanda (still as a part of the EU Charging Scheme), Bromma Stockholm and Gothenburg Landvetter, from 2015. In order to introduce the charge from Jan 1st 2015, Swedavia will consult and decide on the TNC charge for Gothenburg Landvetter separately (on the meeting on 24th of September), previous to the main consultation process for Swedavia’s airport charges 2015. 10 Implementation of TNC Charge at Göteborg Landvetter Airport Adjustment for Outgoing Balance after 2013 According to STA’s decisions (see below), Swedavia will reduce the charge level in 2015 with 1.65 MSEK + 0.8 MSEK for the outgoing balance after 2013 for Swedavia and LFV respectively. 11 Implementation of TNC Charge at Göteborg Landvetter Airport Proposed Charge Structure Proposal to maintain the charge structure according to EU Charging Scheme, where 𝐓𝐍𝐂 𝐂𝐡𝐚𝐫𝐠𝐞 = 𝐔𝐧𝐢𝐭 𝐑𝐚𝐭𝐞 ∗ 𝑴𝑻𝑶𝑾 𝟎.𝟕 𝟓𝟎 The Charge Structure is illustrated in the Light Blue Line in the figure below Charge per Departure Proposed TNC Charge GOT vs. Take-off Charge GOT & TNC Charge at Regional Airports 3 000 Proposed TNC Charge GOT Take-off Charge GOT 2 500 TNC Charge at Regional Airports 2 000 1 500 1 000 500 12 0 1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 101 106 111 116 121 126 131 136 141 146 MTOW Implementation of TNC Charge at Göteborg Landvetter Airport Cost Base 2015 • • • The Cost Base for the TNC Charge is 28.3 MSEK. An adjustment for the outgoing balance after 2013 reduces the cost base by 2.5 MSEK, reaching a total of 25.9 MSEK See summarized table below, and all details from Excel sheet on next slide (available in Swedish only) TNC Göteborg Landvetter Airport - Cost Base 2015 Cost Estimation towards LFV - ATS Cost Forecast Swedavia - 40% of Infrastructure/CNS/MET Cost Base TNC 2015 Adjustment for outgoing balance 2013 - Swedavia Adjustment for outgoing balance 2013 - LFV Net Cost Base for Invoicing 2015 15 500 12 841 28 341 -1 651 -818 25 872 13 Implementation of TNC Charge at Göteborg Landvetter Airport Cost Base 2015 PROGNOS 2015 Flygplats: Schablonfördelning: GÖTEBORG LANDVETTER AIRPORT 40% 60% TNC Underväg Total kostnad flygtrafiktjänst (KSEK) Kostnader fördelade per avgift (KSEK) Flygtrafiktjänst totalt Kapitalkostnader Avskrivning Flygledningstjänst 1 429 Drift- o underhåll Ränta 897 Total Personal- Övriga drift- kostnader kostnader 2 189 Avtal flygtrafikledning (ATS) LFV Lokaler för flygtrafikledning och utrustning Kostnadsfördelning TNC-avgift/ kostnad Term inalavgift 23 444 27 958 15 500 15 500 Undervägsavgift TNC- / Term inalavgift (term inalavgiftszonen) Kapitalkostnader Avskrivning 572 100% Drift- o underhåll Ränta 359 Personal- Övriga drift- kostnader kostnader 876 - Undervägsavgift (undervägsavgiftszonen) Total Kapitalkostnader kostnad Avskrivning Ränta Drift- o underhåll Total Personal- Övriga drift- kostnad kostnader 19 757 21 563 15 500 15 500 857 538 1 313 kostnader 3 686 6 395 279 305 0 791 1 376 Enligt schablonfördelning 112 122 0 316 550 168 183 0 475 825 1 149 592 1 388 2 871 6 000 Enligt schablonfördelning 460 237 555 1 148 2 400 690 355 833 1 723 3 600 0 0 801 4 282 5 082 Beräknad andel 0 0 320 2 792 3 113 0 0 480 1 489 1 970 Kom m unikationstjänst 219 76 1 252 1 716 3 263 87 31 501 686 1 305 131 46 751 1 030 1 958 Kommunikationsutrustning 219 76 1 252 1 716 3 263 87 31 501 686 1 305 131 46 751 1 030 1 958 Navigationstjänst 1 378 986 1 143 6 064 9 572 551 395 457 2 426 3 829 827 592 686 3 639 5 743 Navigationsutrustning 1 055 642 951 1 738 4 386 Enligt schablonfördelning 422 257 381 695 1 755 633 385 571 1 043 2 632 Reservkraftsanläggning 323 344 191 4 326 5 185 Enligt schablonfördelning 129 138 77 1 731 2 074 194 207 115 2 596 3 111 Övervakningstjänst 895 520 191 484 2 090 358 208 77 194 836 537 312 115 290 1 254 Markradarsystem 895 520 191 484 2 090 358 208 77 194 836 537 312 115 290 1 254 Flygbriefingtjänst 0 0 0 0 0 0 0 0 0 0 Färdplaneringsrum 0 0 0 0 0 0 0 0 0 0 Meteorologisk tjänst 105 43 208 452 807 105 43 208 452 807 MET-utrustning 105 43 208 452 807 105 43 208 452 807 4 025 2 523 4 983 32 160 43 691 1 673 1 035 2 118 23 515 28 341 2 352 1 488 2 865 8 645 15 350 Utrustning flygledningstjänst Overheadkostnader Enligt schablonfördelning Enligt schablonfördelning Flygräddningstjänst 100% - 100% - Tillsynskostnader Andra statliga kostnader Sam m anlagda kostnader 14 Operational Air Navigation Service Charges Landvetter Background The cost of operating Air Navigation Services Cost at Landvetter has previously been entered by LFV to the cost base of the regulated terminal cost, i.e. directly settled between LFV and users. Swedavia has not been involved in this process. Therefore, there is now some uncertainty about the cost picture. Verification of the cost structure 2014 LFV has provided information about their costs for 2014, 15,5 MSEK Swedavia has made a backward calculation from LFV Terminal forecast 2013, 15,7 MSEK 15 Pricing 2015 Swedavia and LFV are negotiating contracts for operational Air Navigation Service for 2015 Re-regulation of competition completed in the fall for all Swedavia airports = monopoly LFV has promised Swedavia continued pricing pressures generally LFV is now implementing restructuring to reduce costs and enhance enterprise The probable outcome is that the costs 2015-2016 of operating the Air Navigation Service will be the same or some reduction compared to 2014. 16 Implementation of TNC Charge at Göteborg Landvetter Airport Traffic Forecast • A steady traffic increase expected, at an all-time-high level of passengers Göteborg Landvetter Airport Number of Departing Tons (MTOW) 2 250 000 Göteborg Landvetter Airport Number of Passengers 6 000 000 2 000 000 1.1 % 1 750 000 3.8 % 2.2 % 1 500 000 2.7 %1.8 % 3.1 % 5 000 000 4 000 000 1 250 000 3 000 000 1 000 000 750 000 2 000 000 500 000 250 000 Number of Departing Tons 1 000 000 Forecast 0 Passengers Forecast 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 17 Implementation of TNC Charge at Göteborg Landvetter Airport Proposed Charge (Unit Rate) 𝑀𝑇𝑂𝑊 0.7 50 • TNC Charge = 𝑼𝒏𝒊𝒕 𝑹𝒂𝒕𝒆 ∗ • With the forecasted traffic for 2015, and a cost base of 25.9 MSEK, the unit rate is set to 775 SEK • Compared to previous unit rates (as administrated by Transportstyrelsen): 2010: 2011: 2012: 2013: 2014: 2015: 794 SEK 882 SEK 914 SEK 630 SEK 795 SEK 775 SEK Unit Charge - TNC Charge GOT (SEK) 1000 900 800 700 600 500 400 2010 2011 2012 2013 2014 2015 18 Consultation Process – Airport Charges 2015 Agenda – Meeting 1 – September 24th Introduction Time 12.30 - 12:45 pm Part I – Implementation of TNC Charge at Göteborg Landvetter (implementation Jan 1st 2015) 12:45 - 1:00 pm Part II – Main Consultation Process for Airport Charges 2015 (implementation April 1st 2015) 1:00 - 5:00 pm 1. Background • Summary of Last Year’s Consultation Process and Decision for Airport Charges 2014 • Properties of Swedavia’s Price Model • Financial targets for state-owned companies (External presentation, Ministry of Finance) 1:00 - 1:30 pm 2. Investment plans – Consolidated for the Network 1:30 - 3:00 pm Coffee break 3:00 - 3:30 pm 3. Swedavia’s Total level of Airport Charges • New Economic Targets for Swedavia • Development of Cost & Revenue for Swedavia’s Airport Operation • Traffic Forecast 2014-2015 • Proposal of Adjustment of the Total Charge Level 3:30 - 5:00 pm Agenda – Meeting 2 – October 29th 4. Proposed Changes of Structures & Levels of Individual Charges • Swedavia´s Airport Network • Charges structure & Cost Allocation Principles • Aviation Product Management / Service Level Agreements • Capacity Needs & Investment plans • Proposal for Swedavia’s Airport Charges: o Passenger, Take-off, Emission, Noise, Terminal Navigation & Aircraft Parking Charges • Proposal for Swedavia’s Other Charges: o Ground Handling Infrastructure Charges & Assistance Service Charge (PRM) 5. Swedavia’s Incentive Program 2015 6. Summary of Swedavia’s Proposal 19 19 Consultation Process – Airport Charges 2015 Agenda – Meeting 1 – September 24th Introduction Time 12.30 - 12:45 pm Part I – Implementation of TNC Charge at Göteborg Landvetter (implementation Jan 1st 2015) 12:45 - 1:00 pm Part II – Main Consultation Process for Airport Charges 2015 (implementation April 1st 2015) 1:00 - 5:00 pm 1. Background • Summary of Last Year’s Consultation Process and Decision for Airport Charges 2014 • Properties of Swedavia’s Price Model • Financial targets for state-owned companies (External presentation, Ministry of Finance) 1:00 - 1:30 pm 2. Investment plans – Consolidated for the Network 1:30 - 3:00 pm Coffee break 3:00 - 3:30 pm 3. Swedavia’s Total level of Airport Charges • New Economic Targets for Swedavia • Development of Cost & Revenue for Swedavia’s Airport Operation • Traffic Forecast 2014-2015 • Proposal of Adjustment of the Total Charge Level 3:30 - 5:00 pm Agenda – Meeting 2 – October 29th 4. Proposed Changes of Structures & Levels of Individual Charges • Swedavia´s Airport Network • Charges structure & Cost Allocation Principles • Aviation Product Management / Service Level Agreements • Capacity Needs & Investment plans • Proposal for Swedavia’s Airport Charges: o Passenger, Take-off, Emission, Noise, Terminal Navigation & Aircraft Parking Charges • Proposal for Swedavia’s Other Charges: o Ground Handling Infrastructure Charges & Assistance Service Charge (PRM) 5. Swedavia’s Incentive Program 2015 6. Summary of Swedavia’s Proposal 20 20 Background – Last Year’s Consultation Process • The Consultation Process started September 20th and finished December 6th. • Four main consultation meetings, two meetings on investment plans for Stockholm Arlanda/Bromma & Göteborg Landvetter and four local meetings (regarding Centralized Infrastructure for Ground Handling) at Stockholm Arlanda, Bromma Stockholm, Göteborg Landvetter and Malmö Airports were held. • Final decision on Price Modell & Adjustments of Airport Charges 2014, was communicated on January 2nd 2014 and taken info effect on 1st April 2014. 1st proposal Consultation meeting 2 21 October 1 Oct Consultation meeting 3 14 November 1 Nov Final proposal Decision Final Consultation meeting 4 6 December Final decision – External Communication 2 January 1 Dec 1 Jan 1 Feb New charges take effect 1 Mar 1 Apr Investment Consultations 18 Nov – Arlanda & Bromma 21 Nov – Landvetter 21 Background – Last Year’s Consultation Process Properties of Swedavia’s Price Model. Method for Total Adjustment of Airport Charges. Method – Charges per Airport & Products. +1 % Common Group Product Definitions & Cost Allocation Principles Traffic Forecasts, Investment plans & Cost Development for Swedavia’s Airport Operations. The Final Proposal 6th December 2014. Planned Investments 2014-2017 Per Airport / Business Unit MSEK 2 500 2 000 1 500 1 000 500 0 2014 2015 2016 2017 Safety & Security IT Regional Airports Göteborg Landvetter Airport Bromma Stockholm Airport Stockholm Arlanda Airport 22 Method for Total Adjustment of Airport Charges Airport Charges 2015 Swedavia does not propose any changes to neither the price model nor the method for individual charges. By this, all main properties remain unchanged: • • • • A Single till for Airports Operations (Aviation Business & Commercial Services) at network level. Swedavia Real Estate is excluded from the method. The latest available forecast for the present year form the basis for total adjustment of airport charges the following year. One-year-adjustments only No retro-active adjustments of forecast deviations Two exceptions Permanent Change from 2015: • Revenues from license agreements for ground handling services, will from now on finance ground handling infrastructure instead of subsidizing airport charges Temporary exclusion of TNC Landvetter: • Terminal Navigation at Landvetter excluded from calculations for 2015, in order to show the net effect without the transition between STA/Eurocontrol and Swedavia. 23 Method for Total Adjustment of Airport Charges Included Scope, “Price Model” Swedavia’s two Business Segments Airport Operations – Revenue approx. 4 700 MSEK Aviation Business Commercial Services Revenue approx. 2 800 MSEK Revenue approx. 2 000 MSEK Airport Charges Included Scope Real Estate AB Revenue approx. 300 MSEK Regulated through specific legislation: • Assistance Service (PRM) • Ground Handling Infrastructure Administrated by other parties: • Security Control (GAS) • Terminal & En Route 800 MSEK • Ground Handling Services & Other Products Owns, operates and develops Swedavia’s airports • Not fully related to Airport Operations • Subject to structural acquisitions, disposals & leasing transactions Owns, develops and administers properties and exploitable land at and in the vicinity of Swedavia’s airports. Excluded Scope 25 Method for Total Adjustment of Airport Charges Cost Base – Airport Operations 2014 Cost MSEK 5 000 922 Revenue 1 012 Of which 391 MSEK: PRM Charge at 10 Airports / 3 Ground Handling Infrastructure Charges at 4 Airports 4 000 3 374 2 147 3 000 2 000 245 1 678 ÷ 1 000 786 Number of passengers = Average Charge per Passenger Distributed over 6 different Charges at 10 Airports 26 Financial targets for state-owned companies Elin Lewold Special Advisor, Division for Corporate Governance and Analysis 2014-09-24 Finansdepartementet Agenda Introduction Method Process Swedavia Finansdepartementet 28 Clear goals that are monitored ”The aim is to achieve the best possible value development in the state-owned companies and, where relevant, efficient performance of the public sector assignment” Annual report, State owned companies Finansdepartementet 29 The purpose of the financial targets is to ensure value creation as well as long term corporate competitiveness and capital efficiency Purpose of financial targets: Value creation • Capital efficiency Financial targets • Risk control • • • Dividend yield Finansdepartementet 30 Ensure value creation by making the board and management work towards ambitious and realistic long-term goals Achieve capital efficiency by clarifying the cost of equity Keep the companies’ risk at a reasonable level Assure the owner of sustainable and predictable dividends Facilitate assessment of the companies’ profitability, efficiency and risk level. Agenda Introduction Method Process Swedavia Finansdepartementet 31 Targets for capital structure, profitability and dividend policy Purpose Capital structure Target Ensuring acceptable overall level of risk based on the company's business (business risk) Net debt to equity Equity ratio Optimizing the value by specifying the mix of debt and equity that gives the lowest weighted average cost of capital (WACC) Profitability Dividend policy Finansdepartementet Ensure a return that exceeds the cost of capital over time, i.e. that value is created Setting an ambitious but achievable goal for the company • Ensure that the company financially develops in balance, taking into account future investments and capital requirements • Ensures the owner a yield 32 Return on Invested Capital Equity ratio, EBIT-margin • Share of net profit The targets are long term targets, prevailing over a business cycle Method for establishing financial targets Capital structure Cost of capital Profitability target Consistency assesment Dividend policy Finansdepartementet 33 Proposal Cost of equity - Capital Asset Pricing Model (CAPM) Description Re = Rf + β(Rm-Rf) + Sp CAPM Risk free interest Rf Market risk premium, Rm-Rf Correlation, β Finansdepartementet Calculated historical and current ten year government bond yields The market risk premium is the compensation an investor requires above the risk-free rate to hold the market portfolio Calculated from historical data and implied values Describes the correlation between the value of a company's stock and the market portfolio 34 Cost of debt A higher proportion of foreign debt increases the risk of insolvency, thereby increasing the cost of debt 1. Estimate the company's business risk (compare with rated peers) 2. Estimate the company's financial risk as a function of gearing 3. Assume normalized values of EBITDA, FFO and assets 4. Determine the rating from S & P's Business and Financial Risk Profile Matrix. 5. Adjust rating for government ownership 6. Map rating to table spreads per rating Finansdepartementet 35 WACC (%) Weighted Average Cost of Capital (WACC) x% Optimal capital structure Finansdepartementet Net debt to equity 36 Approaches to calculate the "optimal" capital structure Description A WACC Calculation of the capital structure that provides the lowest WACC Based on cost of equity (CAPM), and cost of debt (rating) at various levels of indebtedness B Peers C Scenarios Finansdepartementet Debt and interest coverage ratios among peers is analyzed and constitutes a guideline for the optimal capital structure Scenarios Stress tests 37 "optimal" capital structure Approaches to calculate a profitability target Description A WACC B Weighted average cost of capital (WACC) constitutes a floor for the profitability target (ROCE) Business plan and Business plan C Peers Finansdepartementet Historical performance Profitability target Profitability and growth rates among peers is analyzed and constitutes a guideline for the optimal capital structure 38 Approaches to establish a dividend policy Description A Expected profitability, growth, investments and capital structure B Peers Finansdepartementet Future capital requirement is calculated from the company’s investment plan A dividend policy is calculated taking into account future capital requirement, target capital structure and a calculation of free cash flow to equity To achieve greater flexibility the dividend policy is expressed as a range Comparison with peers. Significant differences should be explained 39 Dividend policy Agenda Introduction Method Process Swedavia Finansdepartementet 40 = meetings The project involves the owner, the board and management = Recomendation and decisions Process – Step by step Mgmnt meeting Board Project Delegation Board Strategy, KPI Project Follow-up Implementation Revisions? Finansdepartementet Analysis AGM 41 Analysis meeting Owner Follow-up Implementation Agenda Introduction Method Process Swedavia Finansdepartementet 42 Financial targets Capital structure Previous financial targets Financial targets since April 2014 Equity ratio: 35% Net debt to equity: 1.0 – 1.5 (Corresponds to equity ratio 35% to 45% Profitability target Return on equity: At least 9% Dividend policy Share of net income: 30 – 50% Return on operating capital: At least 7% (Corresponds to a return on equity of at least 9%, at net debt of 1.5 times) Share of net income: 30 – 50% Financial targets are long-term and will be evaluated over an economic cycle (5–7 years) Changes in market conditions can may result in revision of targets Finansdepartementet 43 Consultation Process – Airport Charges 2015 Agenda – Meeting 1 – September 24th Introduction Time 12.30 - 12:45 pm Part I – Implementation of TNC Charge at Göteborg Landvetter (implementation Jan 1st 2015) 12:45 - 1:00 pm Part II – Main Consultation Process for Airport Charges 2015 (implementation April 1st 2015) 1:00 - 5:00 pm 1. Background • Summary of Last Year’s Consultation Process and Decision for Airport Charges 2014 • Properties of Swedavia’s Price Model • Financial targets for state-owned companies (External presentation, Ministry of Finance) 1:00 - 1:30 pm 2. Investment plans – Consolidated for the Network 1:30 - 3:00 pm Coffee break 3:00 - 3:30 pm 3. Swedavia’s Total level of Airport Charges • New Economic Targets for Swedavia • Development of Cost & Revenue for Swedavia’s Airport Operation • Traffic Forecast 2014-2015 • Proposal of Adjustment of the Total Charge Level 3:30 - 5:00 pm Agenda – Meeting 2 – October 29th 4. Proposed Changes of Structures & Levels of Individual Charges • Swedavia´s Airport Network • Charges structure & Cost Allocation Principles • Aviation Product Management / Service Level Agreements • Capacity Needs & Investment plans • Proposal for Swedavia’s Airport Charges: o Passenger, Take-off, Emission, Noise, Terminal Navigation & Aircraft Parking Charges • Proposal for Swedavia’s Other Charges: o Ground Handling Infrastructure Charges & Assistance Service Charge (PRM) 5. Swedavia’s Incentive Program 2015 6. Summary of Swedavia’s Proposal 44 44 Planned Investments 2014-2017 By Airport / Business Unit – As Consulted Last Year • • The consolidated investment plan for Swedavia Airport Operations was consulted last year (see below). Swedavia’s complete investment portfolio consist of 1500+ planned or already initiated investments. It is continuously being evaluated and adjusted (see separate slides). Planned Investments 2014-2017 Per Airport / Business Unit MSEK 2 500 Swedavia Airport Operations - Planned Investments (MSEK) 2 000 Airport / Business Unit 1 500 1 000 2014 2015 2016 2017 Total Stockholm Arlanda Airport 627 1 062 1 315 1 003 4 008 Bromma Stockholm Airport 463 608 605 535 2 211 Göteborg Landvetter Airport 201 200 200 200 801 Regional Airports 254 171 90 132 647 69 90 90 69 318 Safety & Security 0 51 0 0 51 Technical 3 2 1 0 6 1 616 2 184 2 302 1 939 8 041 IT 500 0 2014 2015 2016 2017 Safety & Security IT Regional Airports Göteborg Landvetter Airport Bromma Stockholm Airport Stockholm Arlanda Airport Airports Operations in Total 45 Planned Investments 2014-2017 Examples of Adjustments – Final Decided Business Plan (Dec. 2013) Cancelled Investments Arlanda 2014 2015 2016 2017 Total Nytt P-hus T5B Demonterbart P-hus Scanning Check Point Cargo Nytt Golv T5 Utbyggnad EBS RFB 2 A380 Dubbelbrygga A380 Destinationsflygplats Nya- och ombyggnad hissar Fas 2 (alla terminaler inkl. Sky C) HGA Kontor Prio 2 Nya rulltrappor alla terminaler inkl SkyC Mindre investeringar 1 -10 8 -40 65 376 10 30 10 15 12 31 37 Sum Cancelled Investments Arlanda 60 Cancelled Investments by Airport Stockholm Arlanda Airport Göteborg Landvetter Airport Regional Airports Sum of all Cancelled Investments 37 2 10 9 38 10 10 2 38 450 -50 100 90 70 55 18 43 12 40 10,2 150 101 377 451 989 2014 60 20 25 2015 101 43 35 2016 377 36 25 2017 451 101 36 Total 989 200 120 105 178 438 588 1 309 10 10 100 60 60 15 18 15 A reduction of 1 300 MSEK, ending up in a final investment plan of 6 700 MSEK for 2014-2017 46 Planned Investments 2014-2017 Current Investment Plan – As adjusted until Q2 2014 Traffic well above expectations for 2015 has already induced lack of capacity and a need to adjust/increase investments, or to initiate them earlier, compared to as previously planned. Current adjusted investment plan is 7 250 MSEK during 2014-2017. BRS is now in budget for 2015, compared to 2017 in plan Note: • Technical, a department at Group Level, now includes both Vehicles and ATM • Safety & Security belongs to “Other Group Investments” Swedavia Airport Operations - Planned Investments (MSEK) Airport / Business Unit 2014 2015 2016 2017 Total Stockholm Arlanda Airport 537 888 921 541 2 888 Bromma Stockholm Airport 355 787 569 509 2 220 Göteborg Landvetter Airport 137 137 114 138 526 Regional Airports 175 154 132 130 591 71 113 90 70 344 175 230 94 90 589 IT Technical Other Group Investments Airport Operations in Total 39 50 0 0 89 1 489 2 359 1 921 1 477 7 247 47 Planned Investments 2014-2017 Current Investment Plan – As adjusted until Q2 2014 Planned Investments 2014-2017 MSEK 2 500 Investment Categories MSEK 2 500 2 000 1 500 Planned Investments 2014-2017 Per Airport / Business Unit 2 000 Current Forecast 2014: 1 200 MSEK 1 500 1 000 1 000 500 500 0 0 2014 2015 IT Other Group Investments Göteborg Landvetter Airport Stockholm Arlanda Airport 2016 2017 Technical Regional Airports Bromma Stockholm Airport 2014 2015 2016 2017 Commercial Services Aviation Business - Enhancements/Efficiency Aviation Business - Special Regulations Aviation Business - Increase Capacity Aviation Business - Maintain Capacity 48 Planned Investments 2015-2018 The Business Plan for 2015-2018 is now being finalized, and the investment plan updated: • • • Further traffic growth; traffic volumes approx. 5 % higher than estimated in plan. The next consultation meeting will present the full investment plan, and focus on selected projects. Changes will mainly affect charges 2016 and onwards Examples of adjustments: • Stockholm Arlanda Airport New Terminal and Airside Capacity Development Program make up 60 % of total investments Separate Consultation Process • Bromma Stockholm Airport Some investments have been brought forward • Safety & Security Investments to meet new Regulations for Security Controls • Technical Maintenance for Vehicles Remote Control Towers 49 Planned Investments 2015-2018 Swedavia’s Process for Investment Planning & Prioritization Process för investeringsäskande: Infrastrukturella investeringsprojekt bör samrådas med flygplatsanvändarna och stämmas av med Charges & Regulations Manager om det totala investeringsbeloppet omfattar mer än 10 MSEK på Stockholm Arlanda Airport och mer än 5 MSEK på övriga flygplatser, eller om investeringen i övrigt bedöms vara viktig ur ett pris-/produktstrategiskt perspektiv eller av annan anledning är betydelsefull eller kritisk ur användarperspektiv. Vid frågor kontakta: Charges & Regulations Manager 1. Current Status in Consultation Process 1. Har investeringen samråtts med flygplatsanvändarna? Om JA JA var i process? Tidigare i planskede (förstudie) Om NEJ Finns inget behov eller sådant krav Inför slutgiltigt fastställande Planeras att genomföras i: NEJ var? Lokalt samråd i användarkommittéen Lokalt samråd i användarkommittéen Centralt samråd flygplatsavgifter Centralt samråd flygplatsavgifter Annat när? [ange datum] Annat när? [ange ung. datum] Möjlighet till kommentar: [Råder enighet mellan Swedavia och flygplatsanvändarna i bedömning av kapacitetsbehovet, samt för val av investering samt tidsättning av denna? Råder enighet mellan flygplatsanvändarna sinsemellan? Har alternativa lösningar diskuterats om investeringen ifrågasätts? Har investeringen justerats till följd av användarnas kommentarer? Har investeringen någon indirekt påverkan på annan infrastrukturell investering (t.ex. till följd av begränsat ekonomiskt utrymme, gemensamkapacitetspåverkan etc.)?] 50 Planned Investments 2015-2018 Swedavia’s Process for Investment Planning & Prioritization 2. Vad driver investeringsbehovet avseende flygplatsens kapacitet? Ange vilken kapacitet som måste ersättas, införas, ökas, effektiviseras etc. 2. Capacity Needs behind Investment [T.ex. tillgängliga slottar i peak, antal säkerhetsbågar, antal parkeringsplatser, antal gater, kommersiell yta, andel miljöklassade tunga fordon etc.] 3. Vilka nyttoeffekter uppnås? Ange vad påverkan blir på flygplatsens kapacitet - ökad kapacitet, produktivitetsförbättring etc. 3. Effect on Capacity [T.ex. antal maxslottar per timme ökar från 22 till 25, max antal säkerhetkontrollerade resenärer per halvtimme i terminal X ökar från 2000 till 2400, antal parkeringsplatser utanför terminal X ökar från 500 till 600, antal E-kodsplatser på pir X ökar från 6 till 8, antal CUSS-maskiner ökar från 12 till 24, andelen miljöklassade fordon ökar från 50% till 100% ] 4. Produktfördelning 4. Financing through Investeringen ökar kostnadsbasen för avgifter och/eller kommersiella produkter. Ange hur investeringens belastar/finansieras: Passageraravgift PRM-avgift Säkerhetskontroll (GAS-avgift) Startavgift Bulleravgift Emissionsavgift Terminaltjänstavgift (TC/TNC) Undervägsavgift Flygplansparkeringsavgift Marktjänstavgift - Expeditionstjänstinfrastruktur Marktjänstavgift - Ramptjänstinfrastruktur Marktjänstavgift - Glykolhantering Marktjänstutförande & övriga flygoperativa prod. Commercial Services & Real Estate Summa Charges 40% 20% 51 40% 100% (fördela 100 %) Long Term Investment Plans Expected Market Growth in Stockholm Long Term Passenger Forecast Stockholm Arlanda Airport & Bromma Stockholm Airport 40 000 000 35 000 000 Stockholm Arlanda Airport Long term growth of demand Bromma Stockholm Airport 30 000 000 90,2 % Average annual growth 2011-2043: 2.15 % 35 million passengers before 2040 90,2 % 25 000 000 Share of Total: 89,3 % 20 000 000 15 000 000 10 000 000 5 000 000 Share of Total: 10,7 % 9,8 % 9,8 % Average annual growth 2011-2043: 2,0 % 0 52 Long Term Investment Plans Expected Market Growth in Stockholm Development Plan / Terminal Expansion at Stockholm Arlanda Airport (Separate presentation) 53 Consultation Process – Airport Charges 2015 Agenda – Meeting 1 – September 24th Introduction Time 12.30 - 12:45 pm Part I – Implementation of TNC Charge at Göteborg Landvetter (implementation Jan 1st 2015) 12:45 - 1:00 pm Part II – Main Consultation Process for Airport Charges 2015 (implementation April 1st 2015) 1:00 - 5:00 pm 1. Background • Summary of Last Year’s Consultation Process and Decision for Airport Charges 2014 • Properties of Swedavia’s Price Model • Financial targets for state-owned companies (External presentation, Ministry of Finance) 1:00 - 1:30 pm 2. Investment plans – Consolidated for the Network 1:30 - 3:00 pm Coffee break 3:00 - 3:30 pm 3. Swedavia’s Total level of Airport Charges • New Economic Targets for Swedavia • Development of Cost & Revenue for Swedavia’s Airport Operation • Traffic Forecast 2014-2015 • Proposal of Adjustment of the Total Charge Level 3:30 - 5:00 pm Agenda – Meeting 2 – October 29th 4. Proposed Changes of Structures & Levels of Individual Charges • Swedavia´s Airport Network • Charges structure & Cost Allocation Principles • Aviation Product Management / Service Level Agreements • Capacity Needs & Investment plans • Proposal for Swedavia’s Airport Charges: o Passenger, Take-off, Emission, Noise, Terminal Navigation & Aircraft Parking Charges • Proposal for Swedavia’s Other Charges: o Ground Handling Infrastructure Charges & Assistance Service Charge (PRM) 5. Swedavia’s Incentive Program 2015 6. Summary of Swedavia’s Proposal 54 54 Consultation Process – Airport Charges 2015 Agenda – Meeting 1 – September 24th Introduction Time 12.30 - 12:45 pm Part I – Implementation of TNC Charge at Göteborg Landvetter (implementation Jan 1st 2015) 12:45 - 1:00 pm Part II – Main Consultation Process for Airport Charges 2015 (implementation April 1st 2015) 1:00 - 5:00 pm 1. Background • Summary of Last Year’s Consultation Process and Decision for Airport Charges 2014 • Properties of Swedavia’s Price Model • Financial targets for state-owned companies (External presentation, Ministry of Finance) 1:00 - 1:30 pm 2. Investment plans – Consolidated for the Network 1:30 - 3:00 pm Coffee break 3:00 - 3:30 pm 3. Swedavia’s Total level of Airport Charges • New Economic Targets for Swedavia • Development of Cost & Revenue for Swedavia’s Airport Operation • Traffic Forecast 2014-2015 • Proposal of Adjustment of the Total Charge Level 3:30 - 5:00 pm Agenda – Meeting 2 – October 29th 4. Proposed Changes of Structures & Levels of Individual Charges • Swedavia´s Airport Network • Charges structure & Cost Allocation Principles • Aviation Product Management / Service Level Agreements • Capacity Needs & Investment plans • Proposal for Swedavia’s Airport Charges: o Passenger, Take-off, Emission, Noise, Terminal Navigation & Aircraft Parking Charges • Proposal for Swedavia’s Other Charges: o Ground Handling Infrastructure Charges & Assistance Service Charge (PRM) 5. Swedavia’s Incentive Program 2015 6. Summary of Swedavia’s Proposal 55 55 Swedavia’s Total Level of Airport Charges - New Economic Targets Capital Structure Profitability target Dividend policy Previous Economic Targets New Economic Targets Solvency / Equity ratio: 35 % Net Debt to Equity Ratio: 1.0 - 1.5 (Equal to 35 - 45 % solvency) Return on Equity: 9 % (at least) Return on Operative Capital: 7 % (at least) Share of Net Income: 30-50 % Share of Net Income: 30-50 % Under condition that the Capital Structure is kept within the target interval. Definition: Net income less net profit from Real Estate divestments 56 Swedavia’s Total Level of Airport Charges - New Economic Targets Capital Structure Profitability target Dividend policy Previous Economic Targets New Economic Targets Solvency / Equity ratio: 35 % 2013: 30.5 % Net Debt to Equity Ratio: 1.0 - 1.5 2013: 1.9 Return on Equity: 9 % 2013: 10.9 % Return on Operative Capital: 7 % 2013 : 7.1 % Share of Net Income: 30-50 % 2013: No dividend Share of Net Income: 30-50 % 2013: No dividend 57 New Economic Targets – Risk Calculations 58 New Economic Targets – Risk Calculations 𝛽𝐸 = 𝛽𝐴 1 + 1 − 𝑡𝑎𝑥 ∗ 𝐷 𝐸 𝐷 = 𝛽𝐴 (1 + (0.78) ∗ ) 𝐸 𝐷 𝐸 𝛽𝐸 = Equity (re-levered) Beta 𝛽𝐴 = Asset (un-levered) Beta = 𝛽𝐴 1 + 0.78 ∗ 𝟏. 𝟐 = 0.7 ∗ (1 + 0.78 ∗ 𝟎. 𝟗) Swedavia’s Debt Ratio adjusted for Estimated Market Cap of Equity. (Price/Book = 1.66, an average of all privately owned airport operators in the benchmark) 𝑨𝒍𝒕: 1.2 = 0.55 ∗ (1 + 0.78 ∗ 𝟏. 𝟓) Swedavia’s Actual Debt Ratio (Equity 35 %, Debt 65 % – of which Interest Bearing Debt 52 %) Asset Beta according to IATA / McKinsey Study 59 Risk Calculations – Depending on Capital Structure 60 Risk Calculations – Depending on Capital Structure 61 New Economic Targets – Benchmark – Net Debt 62 New Economic Targets – Benchmark – Profitability 63 Swedavia’s Total Level of Airport Charges - Cost & Revenue Development Cost Base for Airport Charges (MSEK) - Swedavia Group 2012-2013 / Airport Operations 2014-2016 Last Year's Forecast Difference Year 2012* 2013* 2014F 2013 2014F 2013 2014F Operative Capital WACC Capital Costs (WACC x Capital Employed) OPEX - of which external operating expences - of which staff costs Depreciations 12 999 6,8% 884 3 227 1 862 1 365 848 14 375 6,8% 978 3 313 1 957 1 355 940 11 228 7,0% 786 3 374 1 841 1 533 922 14 467 6,8% 984 3 308 1 927 1 381 942 11 228 6,8% 764 3 344 1 836 1 507 926 -92 0 -6 5 30 -26 -2 22 30 5 26 -4 -628 0 -44 -262 -231 -608 0 -58 -325 -241 -621 0 -62 -329 -245 -590 -640 18 -19 -49 -313 -219 -49 -316 -221 9 12 22 13 13 24 -2 203 -2 413 -2 147 -2 441 -2 135 -27 12 1 590 1 625 1 585 1 725 -0,3% 1 678 1 813 5,9% 1 622 1 661 1 673 1 673 -37 65 6 140 15 887 239 16 527 586 17 627 247 16 524 833 16 904 498 2 754 722 750 Cost Base per Departing Passenger (SEK) 100,1 4,0% 95,9 6,7% 95,2 Actual Charge Level per Departing Passenger (SEK) Change of Airport Charges per Departing Passenger 102,3 104,4 102,8 -1,5% Costs for Aviation Business Services covered by Other Charges: - Security Control (GAS), Terminal & Enroute Charges Costs covered by new TNC charge at GOT** - Assistance Service (PRM Charges) - Ground Handling Infrastructure Charges (ARN,GOT,MMX,BMA***) Revenues from Ground Handling Services & Other Aviation Products of which revenue from Licence Agreements for Ground Handling Revenue from Commercial Services Cost Base for Airport Charges Actual Charge Level Change in Cost Base Departing passengers (for invoicing) Annual Change *Sundsvall Härnösand Airport excluded from figures for 2012-2013 **Exkluding Costs for ATS (LFV), not included in OPEX for 2015-2016 ***Bromma Stockholm included from 2013 64 Swedavia’s Total Level of Airport Charges - Cost & Revenue Development Cost Base for Airport Charges (MSEK) - Swedavia Group 2012-2013 / Airport Operations 2014-2016 Year 2012* 2013* 2014F 2015F 2016F Operative Capital WACC Capital Costs (WACC x Capital Employed) OPEX - of which external operating expences - of which staff costs Depreciations 12 999 6,8% 884 3 227 1 862 1 365 848 14 375 6,8% 978 3 313 1 957 1 355 940 11 228 7,0% 786 3 374 1 841 1 533 922 12 224 7,0% 856 3 435 1 877 1 558 947 13 106 7,0% 917 3 475 1 891 1 584 1 000 -628 0 -44 -262 -231 -608 0 -58 -325 -241 -621 0 -62 -329 -245 -2 203 -2 413 -2 147 -624 -12 -64 -336 -250 29 -2 188 -634 -13 -65 -341 -254 29 -2 267 1 590 1 625 1 585 1 725 -0,3% 1 678 1 813 5,9% 1 792 1 792 6,8% 1 849 1 849 3,2% 15 887 239 16 527 586 17 627 247 18 023 792 18 334 602 Cost Base per Departing Passenger (SEK) 100,1 4,0% 95,9 6,7% 95,2 2,2% 99,4 1,7% 100,8 Actual Charge Level per Departing Passenger (SEK) Change of Airport Charges per Departing Passenger 102,3 104,4 102,8 -1,5% 99,4 -3,3% 100,8 1,4% Costs for Aviation Business Services covered by Other Charges: - Security Control (GAS), Terminal & Enroute Charges Costs covered by new TNC charge at GOT** - Assistance Service (PRM Charges) - Ground Handling Infrastructure Charges (ARN,GOT,MMX,BMA***) Revenues from Ground Handling Services & Other Aviation Products of which revenue from Licence Agreements for Ground Handling Revenue from Commercial Services Cost Base for Airport Charges Actual Charge Level Change in Cost Base Departing passengers (for invoicing) Annual Change *Sundsvall Härnösand Airport excluded from figures for 2012-2013 **Exkluding Costs for ATS (LFV), not included in OPEX for 2015-2016 ***Bromma Stockholm included from 2013 Airport Charges 65 Swedavia’s Total Level of Airport Charges - Cost & Revenue Development Year PRM & Ground Handling Infrasturcture Charges Cost Base for Charges Actual Charge Level Change in Cost Base Cost Base per Departing Passenger Actual Charge Level per Departing Passenger Change of Charge per Departing Passenger Year All Swedavia's Charges Cost Base for Charges Actual Charge Level Cost Base per Departing Passenger Actual Charge Level per Departing Passenger 2012* 2013* 2014F 2015F 2016F 306 276 19,3 17,4 383 312 25,3% 23,2 18,9 391 383 2,1% 22,2 21,7 15,1% 371 371 -5,3% 20,6 20,6 -5,2% 376 376 1,6% 20,5 20,5 -0,4% 2012* 2013* 2014F 2015F 2016F 1 896 1 901 1 968 2 038 2 069 2 196 2 163 2 163 2 225 2 225 119,3 119,7 119,1 123,3 117,4 124,6 1,0% 120,0 120,0 -3,6% 121,4 121,4 1,1% PRM & Ground Handling Infrastructure All Swedavia’s Charges 66 Swedavia’s Total Level of Airport Charges - Cost & Revenue Development Airport Charges per Passenger (SEK) 108 106 Airport Charges (MSEK) -1.5 % 104 +1.4 % 1 900 102 -3.3 % 1 850 100 1 800 1 750 98 1 700 96 1 650 94 1 600 92 Actual Charge Level per Departing Passenger 90 Cost Base per Departing Passenger 1 550 Actual Charge Level 1 500 Cost Base for Airport Charges 88 1 450 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 67 Swedavia’s Total Level of Airport Charges - Cost & Revenue Development 25 PRM- & GH Infrastructure Charges per Passenger (SEK) 15.1 % PRM- & GH Infrastructure Charges 20 (MSEK) -5,2% 450 -0.4 % 400 15 350 300 250 10 200 150 5 Actual Charge Level per Departing Passenger 100 Actual Charge Level 50 Cost Base per Departing Passenger Cost Base for Charges 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 68 Swedavia’s Total Level of Airport Charges - Cost & Revenue Development All Swedavia's Charges per Passenger (SEK) 126 1.0 % 124 All Swedavia's Charges (MSEK) -3.6 % +1.1 % 122 2 300 120 2 250 2 200 118 2 150 116 2 100 114 2 050 112 2 000 1 950 1 900 Actual Charge Level 1 850 Cost Base for Charges 110 Actual Charge Level per Departing Passenger 108 Cost Base per Departing Passenger 106 1 800 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 69 Swedavia’s Total Level of Airport Charges - Cost & Revenue Development All Swedavia's Charges per Passenger Real Prices (in 2014 year's price level) 126 All Swedavia's Charges (MSEK) 124 Real Prices (in 2014 year's price level) 122 2 300 120 2 250 2 200 118 2 150 116 Real Price Cut 2012-2016: -3 % 2 100 114 2 050 112 2 000 1 950 1 900 Actual Charge Level 1 850 Cost Base for Charges 110 Actual Charge Level per Departing Passenger 108 Cost Base per Departing Passenger 106 1 800 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 70 Swedavia’s Total Level of Airport Charges - Traffic Forecast +3,3% +7,5% +5,8% In total 2013: 4,0 % 2014: 6,7 % 2015: 2,2 % +0,4% +5,2% +1,3% 71 Swedavia’s Total Level of Airport Charges - Proposal A reduction of the average charge level per passenger by 3,6 % A reduction of the total charge in 2015 by 82 MSEK (on a yearly basis) Charge Type MSEK Proposed Change in Charge Level All Charges 2 163 -3.6 % Of which Passenger-related charges 1 570 -3.0 % Of which Aircraft-related charges 593 -5.0 % 72 Swedavia’s Total Level of Airport Charges - Proposal Swedavia’s Proposal Implies a Decrease of Airport Charges 2015 by 82 MSEK (3.6 %): 1. Decreased Passenger Charge for Transfer Passengers Accessibility -50 MSEK Long term traffic growth 2. Capped Take-Off Charge for aircrafts exceeding 150 tons 3. New structure for TNC Charge at Regional airports’ (also capped at 150 tons) 4. New PRM and Ground Handling Infrastructure Charges -32 MSEK In addition to the above: 5. Extended discounts for new destinations and intercontinental traffic. Business Case Approach New established routes Connect Sweden 73 Proposal 1. Decreased Passenger Charge for Transfer Passengers • Proposed for Arlanda & Bromma, in order to strengthen the airports as national and international hubs, and enhance the basis for further route development and increased travel. • For both International & Domestic Passengers. • Market based proposal, however, large cost differences exist between terminal and transfer passengers. 74 Proposal 2. Capped Take-off Charge for Aircraft Exceeding 150 tons Total Departing Tons per Aircraft Weight (MTOW) Swedavia's 10 Airports 2 500 000 Additional tons above 150 tons free 2 000 000 1 500 000 1 000 000 500 000 MTOW 6 9 12 15 18 21 24 30 33 37 40 43 46 50 53 57 60 63 66 69 72 75 78 81 84 89 95 104 109 116 147 154 159 165 176 185 204 228 235 268 295 343 352 386 397 0 75 Proposal 3. New Structure for TNC Charge at Regional Airports Old structure New structure The proposed structure is proposed to be similar to the Take-off Charge (also with a cap at 150 tons), with the following charge levels: 0-25 tons: 10 SEK/ton 25-100 tons: 25 SEK/ton 100-150 tons: 20 SEK/ton > 150 tons: 3 125 SEK (capped) 76 Proposal 3. New Structure for TNC Charge at Regional Airports SEK per ton 25 Current vs. Proposed Terminal Charge Average charge per ton for different MTOW 20 15 10 5 Proposed TNC Charge - average per ton Current TNC Charge - average per ton 0 MTOW 77 Proposal 3. New Structure for TNC Charge at Regional Airports SEK per ton 60 Current vs. Proposed Terminal Charge Average charge per ton for different MTOW Proposed TNC Charge - average per ton 50 Current TNC Charge - average per ton TC (Charging Scheme) - average per ton (unit rate 750) 40 30 20 10 0 MTOW 78 Proposal 4. New PRM & Ground Handling Infrastructure Charges Local Charges 2013-2015 ARN PRM Charge GOT BMA MMX LLA UME KRN OSD VBY RNB Charge per departing passenger (SEK) Charge 2013 0.0 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 Charge 2014 2.8 4.2 2.5 3.5 2.1 1.8 1.7 2.4 2.3 2.3 Proposed Charge 2015 3.5 5.1 2.8 3.7 2.4 1.7 1.3 1.6 1.4 2.8 Passenger Handling Infrastructure Charge Charge per departing passenger (SEK) Charge 2013 21.03 6.7 0.0 9.5 Charge 2014 13.3 16.9 3.0 4.2 Proposed Charge 2015 12.4 16.2 3.8 3.7 Ramp Handling Infrastructure Charge local user committees Charge per departing ton (SEK) Charge 2013 2.0 7.5 0.0 2.4 Charge 2014 10.2 17.3 4.2 8.2 Proposed Charge 2015 7.8 16.6 5.7 9.1 Glycol Handling Charge To be consulted in Charge per liter de-icing fluid (SEK) Charge 2013 7.1 2.6 11.0 2.92 Charge 2014 0.0 7.6 12.8 2.5 Proposed Charge 2015 0.0 8.7 5.0 5.1 79 Proposal 5. Extended Discounts for Intercontinental Traffic Airport Charges - Average per Passenger New Intercontinental Route ARN, 5/7, A330, 264 seats, 90% load factor, 12.5 % transfer pax (SEK) 225 Note: Figures includes Security Charge and Terminal Charge 200 175 150 125 100 Airport Charges 2014 75 Discounted Charges 2014 50 Proposed Airport Charges 2015 25 Proposed Discounted Charges 2015 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 80 Consultation Process – Airport Charges 2015 Agenda – Meeting 1 – September 24th Introduction Time 12.30 - 12:45 pm Part I – Implementation of TNC Charge at Göteborg Landvetter (implementation Jan 1st 2015) 12:45 - 1:00 pm Part II – Main Consultation Process for Airport Charges 2015 (implementation April 1st 2015) 1:00 - 5:00 pm 1. Background • Summary of Last Year’s Consultation Process and Decision for Airport Charges 2014 • Properties of Swedavia’s Price Model • Financial targets for state-owned companies (External presentation, Ministry of Finance) 1:00 - 1:30 pm 2. Investment plans – Consolidated for the Network 1:30 - 3:00 pm Coffee break 3:00 - 3:30 pm 3. Swedavia’s Total level of Airport Charges • New Economic Targets for Swedavia • Development of Cost & Revenue for Swedavia’s Airport Operation • Traffic Forecast 2014-2015 • Proposal of Adjustment of the Total Charge Level 3:30 - 5:00 pm Agenda – Meeting 2 – October 29th 4. Proposed Changes of Structures & Levels of Individual Charges • Swedavia´s Airport Network • Charges structure & Cost Allocation Principles • Aviation Product Management / Service Level Agreements • Capacity Needs & Investment plans • Proposal for Swedavia’s Airport Charges: o Passenger, Take-off, Emission, Noise, Terminal Navigation & Aircraft Parking Charges • Proposal for Swedavia’s Other Charges: o Ground Handling Infrastructure Charges & Assistance Service Charge (PRM) 5. Swedavia’s Incentive Program 2015 6. Summary of Swedavia’s Proposal 81 81 Next step 1 Sep • Please send your viewpoints concerning Swedavia’s initial proposal, at latest October 8th, to [email protected]. • Swedavia will take all comments and views into consideration before presenting the final proposal on adjustments of Airport Charges 2015. • A Separate Decision of new TNC Charge at Göteborg Landvetter Airport will be communicated during October. • Decision on adjustments of Airport Charges 2015 will be communicated during November -December. Consultation meeting 1 24 September Final proposal New TNC Charge at Göteborg Landvetter Airport 1 Oct Consultation meeting 2 29 October 1 Nov 1 Dec Final proposal Airport Charges 2015 External Communication - Final Decision New TNC Charge Göteborg Landvetter Airport External Communication - Final Decision Airport Charges 2015 82
© Copyright 2024 ExpyDoc
