July 5, 2020

Aena studies suspending the dividend


Madrid

Updated:

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The Aena Board of Directors, at its meeting on Tuesday, has agreed to call off the ordinary general shareholders’ meeting scheduled for next March 31, which was to be held at the airport Adolfo Suárez Madrid-Barajas, given the situation caused by the coronavirus pandemic, as reported by the airport manager to the National Securities Market Commission (CNMV).

The board of directors of the airport manager has adopted this decision “as an exercise of responsibility towards the company, its shareholders, workers, suppliers and towards Spanish society as a whole”, taking into account the events that are taking place in Spain and before the state of alarm decreed by the Government as a consequence of the health emergency situation due to the spread of Covid-19.

The manager assures that it is the will of the administrators of the company “to collaborate in the containment of the contagion of the virus, adopting those measures that, legally allowed, help to reduce the risk of contagion of the Covid-19”.

Aena assures that it has opted for said option, evaluating various factors in its decision. First of all, due to the limitation established of celebration of reuniones in closed spaces and the free mobility of people, it has been considered that “the right of shareholders to participate in legally established shareholders’ meetings could be limited, since attendance and telematic participation of all those interested in assist.

Secondly, the fact that, for the correct celebration of the Meeting, it is not possible to avoid that a certain number of company employees, personnel from external suppliers, have to be collaborating in its celebration, with the risk to their health, has been evaluated. that this could mean.

“Therefore, for the sake of protecting these people and all those who, with their effort and work, make it possible to hold the general meeting of the company, it is considered that it is reasonable not to hold the meeting, thus minimizing the contagion risk, “he justifies in his statement to the CNMV.

Once the state of alarm ends and within the period of one month referred to in the Royal Decree, as soon as the company’s administrative body agrees to call again the Ordinary General Shareholders Meeting, Shareholders will be notified by the legally required means.

In view of the circumstances and the economic situation, this call will assess whether or not the dividend provided for in the call for the General Shareholders’ Meeting held in February 2020 is maintained.

Aena’s board of directors had proposed to the general shareholders’ meeting the distribution of a dividend of 7.58 euros gross per share with a charge to the result of the 2019 financial year, fulfilling its commitment to allocate 80% of the annual net profit to the dividend of the parent company, reflected in the Strategic Plan 2018-2021.

Impact on businesses

The Government announced this Monday that Aena will reorganize the operation of its network of 46 airports in Spain, with the closure of terminals, to reduce expenses, and that it will exempt part of the rent payment to the premises affected by the drop in traffic and the closure of facilities as a consequence of the coronavirus.

The Minister of Transport, Mobility and Urban Agenda, José Luis Ábalos announced that “businesses that will not be able to carry out their usual activity will be exempt from paying the rents.” This could have a significant impact on Aena’s accounts.

According to Aena data, in 2019, the ordinary commercial income of airports in Spain reached 1,241.1 million euros, representing an increase of 8.5% compared to the previous year.

Most commercial contracts for Aena They include a variable income on sales made (percentage that varies depending on the categories of products and services) and a Minimum Guaranteed Income (RMGA) that ensures a minimum amount to be paid by the lessee when committing a percentage of their business plan.

For Aena, the change in situation due to the closure of stores could impact the 800.8 million that the group had planned to enter in 2020 in minimum income from the commercial contracts in force until last December 31. By business lines, the forecasts were to enter duty-free stores (368.3 million euros), restaurants (211.7 million), stores (88.7 million), commercial farms (69.5 million), vehicle rental (41.6 million) and advertising (21 million).

Aena released on February 25 the data of its year-end 2019 in which it recorded a consolidated net profit of 1,442 million euros, which represents an increase of 8.6% compared to earnings of 1,327.9 million euros from last year.

Aena’s network airports closed 2019 with 275 million passengers, representing an increase of 4.4% compared to 2018. Looking to 2020, the company expected passenger traffic from the Spanish airport network it will increase by 1.9%, eight tenths more than initially anticipated, excluding the eventual impact of the coronavirus. The company’s total revenue was € 4,503.3 million, 4.2% more than in 2018.

In its presentation of results last month, Aena had revised upwards its forecast of passenger traffic for the year 2020 in the Spanish airport network, which went from an expected growth of 1.1% to an increase of 1.9% , which means about 280.5 million passengers.

For the current year, the company expected to improve total revenues by approximately 4%, to 4,687 million euros and obtain a profit of about 1,444 million euros, without variation.

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