DAA Finance plc Statement

April 24, 2009

EUR250,000,000 6.15 per cent. notes due 2011 of DAA Finance plc,
guaranteed by Dublin Airport Authority plc (ISIN:XS0124714832)

EUR600,000,000 6.5872 per cent. notes due 2018 of DAA Finance plc,
guaranteed by Dublin Airport Authority plc (ISIN:XS0375220588)

2008 Financial Results

Dublin Airport Authority plc (“DAA”) today published its financial results for the year ended 31 December 2008.  DAA said it recorded a satisfactory performance during 2008 against the background of a much more difficult operating environment, particularly in the latter part of the year.

Excluding net exceptional items, Group profit after tax was €78 million in 2008 compared with €109 million in 2007, a decline of 28% from the previous year.  Total Group profit after tax for the year (including exceptional items) was €47 million compared with €348 million in 2007. Exceptional items comprised net losses of €31 million in 2008, primarily related to a once-off pension provision, and net gains of €239 million in 2007, primarily related to the profit on disposal of the Group’s stake in Birmingham Airport.

Total passenger numbers at DAA’s three Irish airports (Dublin, Shannon and Cork) were 29.9 million, a decline of 0.6% on 2007 and the first annual decline since the 1991 Gulf War.  Group turnover was €631 million, an increase of 1%. Group earnings before interest, taxation, depreciation and amortisation (EBITDA) were €155 million, a decline of 9%.

Aer Rianta International (“ARI”), which manages the Group’s overseas airport investments and international airport retail operations, contributed approximately €25 million or 32% of Group profit for the year (excluding exceptional items), a decrease of 13% compared to 2007.  This decrease reflected the sale in 2007 of ARI’s 24% shareholding in Birmingham Airport. On a like-for-like basis, profit at ARI increased by 6%.

At 31 December 2008, the Group had capital commitments of €561 million. Liquidity at the same date was €1,379 million, comprising cash of €879 million and undrawn committed borrowing facilities of €500 million. Gross debt was €1,067 million at the year-end, while net debt was €188 million.

Outlook

Economic activity is a key driver of passenger volumes. Current Irish government estimates for 2009 are that the Irish economy will decline by 8%, on top of a 3% contraction in 2008, with a further, less severe, reduction expected in 2010.  Latest Irish Central Bank estimates are that gross domestic product will fall by a further 3% in 2010.

DAA currently estimates that passenger volumes at its airports will fall by circa 11% in 2009, to around 26.6 million, reflecting the continued impact of the global economic crisis, the weakness of the domestic economy, including the fall in consumer spending, and the reduction in airline capacity. Passenger numbers at Dublin Airport are expected to fall at a similar rate (circa 11%) to around 21 million in 2009, compared with 23.5 million in 2008.

DAA expects minimal opportunity for passenger growth in 2010 or 2011, pending a recovery in the wider economy.

The current very challenging environment is also expected to continue to impact on DAA’s commercial activities. Turnover in retailing and car parking at the Irish airports has shown a marked decline on 2008 levels.  Sharp reductions in both the number of airline passengers and passenger spending have also been recorded at overseas airports where ARI operates retailing concessions, in particular in Russia and the Ukraine.

DAA’s core airports business, comprising Dublin, Cork and Shannon airports, is expected to move into losses in 2009, with a continuation of present trends likely to result in a further significant deterioration in 2010.  In light of these challenges, actions being taken by the Group include:

  • Introducing cost saving programmes across the Group.
  • Significantly reducing and/or deferring planned capital expenditure.
  • Seeking a more appropriate regulated price cap for airport charges at Dublin Airport. DAA is currently participating in the regulatory price cap review which is underway.

DAA’s financial position from 2010 onwards will, in addition to the pace of economic recovery, depend to a large extent upon the determination later this year of the Commission for Aviation Regulation.  This will set the price cap for airport charges at Dublin Airport for the next five-year regulatory period commencing in 2010.

Enquiries: Ray Gray, Director-Finance, Dublin Airport Authority plc
Telephone number: +353 1 814 5265
Email: ray.gray@daa.ie

Feargal O’Reilly, Director, DAA Finance plc
Telephone number: +353 1 814 1690
Email: feargal.oreilly@daa.ie