Aeroports de Paris SA
PAR:ADP
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Aeroports de Paris SA
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Good day, and welcome to the Groupe ADP 2020 First Quarter Revenue Conference Call. Today's conference is being recorded. I'd now hand over the call to Mr. Philippe Pascal, Chief Financial Officer. Sir, please go ahead.
So good morning, ladies and gentlemen. Thank you to join this call for the first quarter review. So I go straight to the point. I want to comment the main driver of our activities. That is the traffic. When you see Slide 1, for the first 3 months of the year, we have a decrease in terms of traffic group for around 10% and a decrease in -- for the traffic in Paris for around 21%. When you see globally, the traffic in all our platform around the world, we can see that we have, on average, a decrease with our main platform for around 20% in Paris-Charles de Gaulle, in Paris-Orly, but also in Turkey with Antalya, with decrease of 15%; Ankara, 30%; Izmir, 20%. We can see also a decrease of 21% in Amman and a decrease in Chile for 12%. So globally and when you check the different point, Slide 2, we have some traffic restriction due to the situation of the coronavirus pandemic. You can see that the main part of our platform are now closed to passenger traffic. And if it's not closed, we have a very limited operation when you see the different color in this map, Slide 2. Slide 3, we can see that we have a specific breaking point at the end of February. Before, we have normal situation and we have a good trend in terms of traffic. But after the end of February, we can see the strong decrease. And now we are in very, very low situation in Paris with a decrease for around 98% of our traffic. So globally, a very, very, very low traffic, around 3,000 or 4,000 passengers each day in Paris. So it's the current situation in the beginning of April and when you see for this week it's the same level of traffic. In term of -- if I give more details about the traffic figures in Paris, we can see Slide 4. When you compare Paris Aéroport with our main competitors in London, Amsterdam, Frankfurt and Madrid, we can see that all the European airports have the same huge impact at the end of March for around 20%, between 18% and 25%. We can see that in terms of destination, the main impact is linked by the Asia Pacific destination with a decrease of around 34% and for the other destination, a decrease of around 15%. Slide 5. So globally, in terms of impact in our revenue, we have a decrease at the group level for 5.6%. But remember that we have a full consolidation effect of the Société de Distribution Aéroportuaire and Relay@ADP. If we [ thrice ] this effect, we have an organic decrease at around 15%. So all in all, in our view, we have the full consolidation effect in SDAR, the decrease in Amman for around 15%, a decrease in Chile airport for around 20% and a decrease in Paris also at the main level. If you see Slide 6, we can see that, clearly, we have the full consolidation effect in the retail and service activities. We can see also that we have a huge decrease in terms of aviation activities in Paris for 15% and a decrease in the retail activities for around 18%. Despite a slight increase in terms of sales per pax, slight increase linked by the very strong performance at the beginning of the year in our retail activities in Paris, just linked by our new strategy in all our retail area.Finally, when you see Slide 7, we give more color about the full year impact. It's just a color. It's a sensitivity analysis. It's not a guidance. It's very important. We don't have any guidance in terms of revenue, but we give a sensibility [ sensitivity ]. When you check now the different scenario and when you check the scenario of all the different stakeholder in the aviation activity, we can see that we can expect in Paris a drop in traffic in Paris, in Amman and in TAV between 55% and 65% between April and December 2020. It's an equivalent of a decrease in the full year of 48% and 58%. And if we take account this strong decrease in term of traffic and if we studied the consequences in our revenue in the aeronautical activities but also in the retail activities and all the consequences in the other activities of the Groupe ADP, we can estimate, but it is just an analysis of sensitivity, the decrease in terms of revenue between EUR 2 billion and EUR 2.5 billion. It's very important to know that it's just a sensibilities (sic) [ sensitivity ] analysis. In -- it's not possible for the moment to give you more color about impact in terms of EBITDA because we work a lot to stabilize our situation with an important operational and financial plan. This plan include a lot of infrastructure closures to reduce the Groupe ADP and airlines operating expenses. This plan includes also a plan to stabilize our financial situation, to reduce our OpEx for 2020 by EUR 270 million. And these figures, excluding clearly additional savings linked to the resort to the partial activities in Paris. So it's not a cost-cutting plan. The cost-cutting plan is for EUR 270 million. But it's possible to have more savings linked by the partial activities. But partial activities, it's a consequence of the decrease of the activity. It's not a cost-cutting plan for us. In terms of CapEx, we prepare a plan for the adaptation on the rationalization of the works in order to take into account the group financial situation and the availability of the contractors. It's not possible to build -- to finalize our terminal if we don't have any building companies. But also it's very important to adapt and to rationalize our plan linked by the current financial situation. So this is a very quick presentation to give more time for you to ask a lot of questions, and I am now available to answer this question. Thank you.
[Operator Instructions] We'll take our first question from Elodie Rall from JPMorgan.
So I'll just start on CapEx since you finished the presentation on that. So I understand you're basically reviewing the CapEx plan here given the quick change in the business. Could you give us a bit of color about where we should model the minimum maintenance CapEx? If we assume here that traffic is going to stay depressed, how is the situation going to change the ERA 4? And how we should model for the next few years basically the CapEx and the tariff profile basically of the group given that potentially this is going to change everything in terms of negotiation in Terminal 4? And then another question on leverage because after the consolidation of GMR, I think your leverage is going to be quite high. So given the sensitivity you've given us, which is not a guidance, I understand, could you give us a bit of color where you think leverage will end up at the end of the year with an update on the cash situation under the scenario that you presented to us?
So thank you, Elodie. So in terms of CapEx, so we have CapEx for 2020. And we have after the CapEx for the next year included 2021 and the potential Economic Regulation Agreement after. So for us, we try to reduce the current investment for 2020. But we launched a huge workshop for that because the -- now a large part of the CapEx for this year, it's linked by the finalization of the chime junction in Terminal 1 in Paris-Charles de Gaulle but also the junction between the terminal 2B and 2D in Paris-Charles de Gaulle and the project to modernize all our departure -- international departure process in Orly. This is 3 huge project. And we are in -- now the works are globally stopped. But it's very important for us to finalize this project because if we don't finalize, probably, we have to -- we have a huge impact in -- when we want to restart this project. So probably when we finalize this project now, it's probably less expensive than if we stop for a lot of months. So it's rational to continue this project. But to continue and but also to take account our financial situation to -- just to finish the part that is very important to finish, not to launch a new project. So this is our main issue for 2020. In terms of maintenance, obviously, we have to realize all our maintenance plan. It's around EUR 100 million and EUR 200 million for each year. So in the same workshop, we study all the maintenance operation to know if it's really important. And if it's important, obviously, we launch this CapEx plan. So probably, it's a little bit early to give you specific figures for the CapEx plan of 2020, but we try to reduce and to reduce in large part of this CapEx plan for the next year. So as you know, it's difficult now to know if we have or not an Economic Regulation Agreement for the next year because our proposal, it's now not aligned with the current situation in term of traffic forecast, in term of CapEx plan because probably we have an impact in term of capacity and room of maneuver in term of capacity for the next years linked by the progressive recovery of the traffic. And -- but we have also a huge impact in our proposal for the next Economic Regulation Agreement linked by the fact that the starting point of the Economic Regulation Agreement in terms of regulated ROCE probably is not the same, but we have a proposal in our first consultation document last year. So probably, we have to study a new CapEx plan. And we have to check if it's possible to -- when we need to build the Terminal 4, probably we have to launch the construction of the Terminal 4, but perhaps not in the same time table than we discussed previously. At the end of the day, what is clear for us in a long-term view, our industrial strategy, it's a good strategy. We have to increase the capacity in the Charles de Gaulle. We have to increase the capacity in Orly. We have to develop the company in our international activities. We have to stabilize our footprint in the world because it's vital for the economic model of ADP. But in the short and medium term, we have to change our strategy in the short term to be able to stabilize our financial situation; and in the medium term, just to -- probably to reschedule a large part of our CapEx plan and our strategy, our development strategy. This is for the CapEx plan. As far as the leverage, so it's -- that is very clear. And last year, when we speak about leverage and the capital allocation, a lot of analysts, a lot of investors said that we are not enough leveraged. In fact, we have now -- we preserve a large part of our room of maneuver to be very resilient. And for us, it's very important now to stabilize our situation after the GMR operation but also to stabilize our situation to be able to continue our equity story. So it's not a moment to give you some figures or color. But in terms of gearing, for the moment, after our new mold for EUR 2.5 billion, our gearing now is different because we don't have any -- for the moment, we have EUR 2.5 billion in our treasury, in our cash. So we don't employ this amount, so we don't have a huge impact in our gearing. So thank you for your question.
[Operator Instructions] We'll take our next question from the line of Stephanie D'Ath from RBC.
I have a couple of questions, please. The first one is regarding Terminal 4, it's the returns of ERA 4 I'm interested in. Let's assume there we've been in the lower end of the range that our transport regulator has suggested. Is it [ possible ] for you to build it? Secondly, in terms of split between leisure and business, could you maybe give us an idea of how your traffic pre-COVID is and where you expect the recovery to be faster or slower? And then regarding regulation [ deal ], then you will end up ERA 3 underearning or below the regulated WACC of 5.4%. Would you expect to leave with some cash loss on that in the next regulation [ shoulder ]? And then finally, in terms of the costs of staff, I believe the French government has put in place some measures for technical unemployment where they cover 70% of the salaries. Can you confirm if you fall within that scope for staff employed by ADP?
So thank you for your questions. So for the question of cost of staff, obviously, a large part of our employees are now in the unemployment system. And this system is very, very helpful for ADP because more -- between 70% and 80% of payroll are now paid by the French state. And for us, it's savings for each month for around EUR 20 million or between EUR 20 million and EUR 25 million. And so it's very important. It's a very good system because it's possible with this system to accompany the recovery of the traffic step-by-step and to have a very performant system to -- in term of operational view but also in term of financial view. So now for the moment, around 70% of the people of ADP are in this system. In term of regulation and the level of WACC, as you know, Groupe ADP requested to the French Council of State the consolation of the opinion published in February by the French authority. So for us, the regulator around the Transport Regulation Authority make a huge mistake because in terms of calculation for the WACC, it don't take account the level of cash. And when you see the current situation, the level of cash of ADP but also for all the airports around the world, it's a key point. And the second huge mistake, it's linked by the fact that the French regulation authority consider that when we have an Economic Regulation Agreement, we don't have risk in your activities. When you see now, we have an Economic Regulation Agreement jointly. And with this joint Economic Regulation Agreement, we are -- we have a strong impact in our economic model linked by the coronavirus. So it's the fact that we have an Economic Regulation Agreement, it's not a full protection for our risk. What is clear for us, it's the fact that with these 2 mistakes, the nonbinding opinion of the regulator is not valid, first point; second point, in terms of Economic Regulation Agreement for the next Economic Regulation Agreement, it's very hard for the moment. It's -- I can clearly say that our assumption and our proposal is now not available. It's -- we are to take the decision. It's for the moment not the case, but we are probably to take the decision that we stop the process for the negotiation for the next Economic Regulation Agreement. Be careful, the decision for the moment are not taken. If we take this decision, obviously, the question of Terminal 4, the question of CapEx plan are now on the table. And we have to put a new CapEx plan, a new element for the next Economic Regulation Agreement. So clearly, it's not the moment to speak about that. It's a little bit early. But when you see the figures, probably, we have to postpone a part of our CapEx plan, and we have perhaps to postpone the part of the Terminal 4 or just to reschedule the Terminal 4 to start by the airside works and to postpone the building, for example. And so that is clear for the Economic Regulation Agreement [ #4 ], the fact that the decision is not taken to stop the process, not taken yet, but it is obvious that the parameter changed. For the recovery of the traffic, so we expect a slight recovery at the end of June and a progressive recovery but probably very, very progressive recovery during the summer. And we expect a recovery, first, in the European zone and after, external to the European zone. So the restriction on travel should first be eased between ERA with comparably low reporting circulation of the virus. That is very important for us. And after, when the external border reopening and when it's possible to access for the non-European resident to the European platform, we have a good recovery. But it's difficult to modelize for the moment the different authorization and restriction in all the country around the world. The key of the recovery for us, it's to restore the confidence among travelers. We work a lot about the sanitary rules very close with the French government. We work a lot with the European Commission. And we also work a lot with all our platform in our group to try to create some corridors between our different platform. We work with GMR Airports and with the Indian government to try to have a link between Delhi and Paris. We work a lot with TAV, and TAV work with the Turkish government to create very good rules to facilitate the reopening of the traffic between these different airport. We work with the different government to ensure on departure, on board and on arrival is a safe condition. We have day-to-day work with Air France but also with the other airlines to try to give this bubble in terms of confidence in our airport and in the aircraft. That is for us the condition to have a strong recovery. So when you put in our presentation specific analysis in terms of profitability, it is just sensibility (sic) [sensitivity], it's not a guidance [ last ] time, but we can see that we have a range. And in the first -- in the range between a decrease of 55% and 65% between April and December. If we take 55%, it's a very positive dynamic and very optimistic view. On the 65%, it's not a pessimist view because we have to check the situation day by day. But we can say that it's a possible impact in our account. So that is clear. It's the specificity of the airport. It's possible to reopen an airport in Paris if we have another airport at the arrival that is open and the border open. So it's very important for us to work with all the stakeholders and all the aviation sector. That is the case now. We are very, very confident to finalize a global view and a common view with our stakeholders to accelerate the recovery. So thank you for your question.
And let me just say how quickly could you implement testing at the airport? And is there any way that all airports could start the same way we could check on passports become an absence of barriers within a passenger?
So we have 3 different step. The first step, it's when -- it's a current step, when we have very low traffic in our airport. The second step in when we have first recovery in our traffic. And the third step, it's the new vision of the sanitary expectation in the airport. In the first step, we work but [indiscernible]. But we speak also about the mask, about [indiscernible], we speak a lot about can we have this custom [indiscernible]. So that is -- for us, it's difficult to test a huge part of the passenger. But it's better to try to have a global strategy for the mass, for example, to test the temperature in the boarding gate, for example, systematically for all the passengers. But the test just for the virus with huge process, it's difficult to implement that. Some airlines tried to do in some airport but just for the specific destination and for the part of the passenger. It's not possible to generalize this strategy for us. That is important for us. It's, for example, to work with the French authority to -- just to -- for example, to ask for proof of a test just 24 hours before the flight to give you the proof that the passenger -- all the passenger arrived at the airport with specific certification, that is clear that the tests are made in the downtown of the city, for example. So we work about that. We work a lot in -- at the arrival of the flight because at the arrival, we have now -- we bought a specific camera, a thermal camera to check all the passengers. But we have to work with the French state but also with the different authority in all our airports around the world to have the process to secure -- to test the passenger. It's not possible for the airport, but it's possible for the official authority to do that, to test the passenger at the arrival and to check probably the situation of part -- just a part of the passenger that the temperature, it's not at a good level. For us, that is very important. It's not to have passenger in quarantine at the arrival. That is very important. It's to create a corridor. When you take off in Delhi, for example, we have enough confidence to welcome the passenger in Paris without counting. It's very important to secure the process at the departure. We can check at the arrival, and we are now ready to do this check. But it's very important to limit the probability of the quarantine at the arrival because it's not a good sign-off for all the passengers. So in term of time line for this first stage, we are now in a good way to implement that in May and in June. In -- for the second step, it's linked by the strategy of the state. It's difficult to know now. And for the third stage for the structural process, we work in term of -- with a specific technology and strategy. Perhaps in the medium or long term, it's possible to test all the passenger. But now it's not possible. So thank you.
We'll take our next question from the line of Cristian Nedelcu from UBS.
Three, if I may. The first one on cost, can you give us a rough indication what the cash OpEx consumption in these times of virtually 0 revenues? I'm asking that just because -- please correct me that I'm wrong, but I think your cash OpEx in the full year, including the full consolidation of SDAs, somewhere a bit higher than EUR 3 billion, so I'm trying to understand better. You mentioned EUR 270 million of cost reduction plus some other cost reductions on top of that. I'm trying to understand what the actual total potential there. Secondly, the regulatory agreement or the next regulatory period was supposed to start in April next year. Could you give us a rough indication as to what happens? Does the current tariffs stay in place if the regulation is rolled over later? Should we think of a 1-year delay to 2022? And what happens to the tariff if you continue to charge the current tariffs in that situation? And the last question in the sensitivity scenario that you presented with the EUR 2 billion to EUR 2.5 billion of revenue decline. What assumption do you have there for the retail spend per pax year-over-year? Is that flat? Is that declining? Is that growing? Any color you can provide there.
So thank you for your question. In terms of cash OpEx, so -- and our cost-cutting plan, so our cost-cutting plan for EUR 270 million, it's a cost-cutting plan for ADP mother company but also for TAV, also for Amman airport and also for our JV included there. So it's a global cost-cutting plan and this cost-cutting plan excluding the unemployment system of -- linked by the French government. So in term of cash, perhaps, it was a global answer. So we -- as you know now, we have enough cash after the new bonds of EUR 2.5 billion. In terms of cash-in, we are in April part of the payment of the previous activities in February and March. So we have a very slight cash-in, but we have also cash-in, very slight. Probably in May and June, we have a strong decrease in terms of cash-in despite the fact that we have perhaps a slight recovery in terms of traffic. So in terms of cash-out, we have the OpEx in all our mother company and in all our subsidiaries. We have the CapEx plan, and we have the second step of GMR Airports operation. That is the 3 main cash-out issue. For the cash of the OpEx, we try to reduce very, very strongly the cash-out, and it's -- for that, we closed a large part of our infrastructure. We closed all our offices. We closed a large part of the airside operation, for example, in Paris-Charles de Gaulle. We are -- runway, now we have just 2 runway open. We closed also a large part of our activities that is not at the heart of our strategy. That is -- so we reduce and we renegotiate all the contract and the agreement with our subcontractors. And we are still in negotiation with all our subcontractors to reduce this consumption of cash. So it's difficult to give you now figures, but obviously, it's at the heart of our strategy. In terms of regulation, that is clear. We have -- if we don't have an Economic Regulation Agreement, we have a specific process linked by the European rules that we have proposed an increase in term of traffic -- or increase in term of tariffs, linked by the level of profit, the level of OpEx and the level of CapEx. If we don't have an Economic Regulation Agreement, it's not possible to launch a huge CapEx plan because, for all our shareholders, it's not possible to give a specific green light. If we don't have a good visibility for a part of the construction of this building. So probably, we have a very low CapEx plan without an Economic Regulation Agreement. Probably we try to decrease our OpEx. And obviously, we can ask for tariff. And we have a specific agreement with the to obtain -- and to obtain with the transportation authority, to give you a green light to increase this price. If we don't have this green light, we are -- the current rules are very clear. It's possible to freeze our fees. So that is to answer directly at your question, without an Economic Regulation Agreement for the next 2021 -- next year, 2021, I mean, we have the same tariff than this year. Maximum, we can increase this tariff if we have to not [ trouble ] with our regulators. Your last question about the retail. Now it's very difficult to give you some color about the retail as there’s some sensitivity. We are -- because we have to check the recovery in terms of international traffic. If we -- our customer come back or not, we have to check if it's possible to reopen a part of a global area -- retail area in our terminal. And if it's possible to finalize or not our new infrastructure, for example, now we try to build the junction between the international satellite in Terminal 1 in Paris-Charles de Gaulle. If we finalize this project, if we have enough cash to finalize, if it's rational to continue this work, probably, we can reopen this infrastructure in the middle of 2021. And it's a very performance area for the Asian passenger. So it's difficult to know now if we have a good recovery or to give you more color about that because we have a lot of assumption for the moment. So thank you. Thank you very much.
We'll take our next question from the line of Arthur Truslove from Crédit Suisse.
Arthur Truslove from Credit Suisse. Just had a question on the longer-term traffic trends after all of this have come to an end. Clearly, in the Economic Regulation Agreement, you were pitching to around 2.5%, 2.6% traffic growth each year. How does -- how has your midterm traffic assumptions changed as a result of what's happened during the course of this crisis. And in particular, I'm referring to any potential restructuring with the likes of [ retail and market ].
Sorry, it's difficult to give you more color about the assumption in terms of traffic for the next year. It's too early. We have -- it's clear that the assumption in our current proposal for the next Economic Regulation Agreement is now not available. It's not pertinent. We have just to wait if we take the decision to stop the process or not and to wait to have more comfort about the recovery. At the end of the day for us, our conviction, it's that we -- it's possible to have the same long-term strategy. But when I speak about long-term strategy, it's a 10 or 20-year strategy. Because when you have to launch Terminal 4, for example, we start the construction, I don't know, in 2023. And we finalize this construction in -- the first stage of the construction in 2033. And we finalize all the terminal in 2043. So for us, our conviction is the fact that the aeronautical activity, it's vital, and we have a huge impact now. But probably at the end of the day, we have enough dynamic in term of economic view, in term of tourism, in term of business travelers and so on, to be confident that in the long term, we need capacity. In term of -- and be careful, for us, we are now shareholders of GMR airport, for example. A large part of the traffic in India, it's domestic traffic. And when you see the geography of India. We can see that it's a huge country. And obviously, all the Indian people need airport just for the domestic traffic. So for us, it's a global strategy to invest in Paris but also in our international activity to stabilize our situation.
We'll take the next question from the line of Nicolas Mora from Morgan Stanley.
Three questions, if I may. First one, on cost and just the shape of the recovery. What happens really to the business if we have a very slow recovery, but you still need to deliver top quality of service? I mean can you genuinely perfectly match the ramp-up in traffic and the ramp-up in costs? Because the fear is that there'll be a big discrepancy when you reopen the infrastructure. Second, on retail, have you given a bit of thoughts or are you start negotiating terms with travel retailers and so on and clients? I mean I know you are your main client with SDA. But at the end of the day, we're hearing a lot of adjustments to terms of contracts, concession fees, waivers, abatements. Where do you stand on that? And the last point on leverage and to come back to Elodie's point on leverage, I mean let's be honest, getting out of this crisis, we're looking at 2021, it seems leverage is a bit high. What -- besides cutting CapEx, which we understand, I mean, is there -- should we think about balance sheet repair one point or the other? And where do you stand on this?
So thank you for your questions. So first question, so in fact, we have -- we try to accompany and to be very agile to accompany the recovery of the traffic without a huge step in our cost. So now we try to finalize all the negotiation linked by the closing of -- in our infrastructure. And at the same time, we try to establish a good strategy for the reopening of this infrastructure. So for the reopening of this infrastructure, we are -- we try to be agile to convince all the airlines that it's possible to operate in just 1 or 2 terminals but not in our terminal before the crisis. So we have to convince, for example, all the handling [ actors ] to operate in other terminals, the terminals before the crisis. And in term of reopening, for the cost control, the main point, it's the negotiation with our subcontractor. That is the key point. We have a second point that is the unemployment system. But with this unemployment system, we are very agile. As I said previously, it's possible to our company just to have a part of our employees for a few hours or few days for each week. So it's possible to be agile. And so we are not -- we are very confident with the strategy in terms of employment system. In terms of subcontractors, it's a huge, huge work. And it's perhaps a little bit early to speak about that. But we have room of maneuver. We have room of maneuver because it's a global interest for all directors, for the subcontractors, for the airlines, for all our stakeholders to manage the situation because -- to manage in a rational way, not just in a way to -- because subcontractors also know that it's a long-term crisis. In terms of retail, it's difficult to answer the question that you know exactly. So a large part of our retailers is retailers in term of -- with luxury brands, with a specific customer, with a specific passenger, for example, with [ Le Bourget ]. And when we don't know exactly what is the new traffic and the country of this new traffic, it's difficult to negotiate with our retailers. So now to [ trend ] discussion, it's not about this economic model, it's more about we restore the confidence for all the customers. That's the question of development, and it is important for all stakeholders. [indiscernible] each for the moment, we are confident because we [indiscernible] with our current situation, we can have a resilient situation between now and the end of the year. I think in terms of leverage, we have enough room of maneuver. And we are today confident for that. We -- given our treasuries and the success of our bond issue, we don't expect treasury issue on the short term. And we don't expect financing these [ duties ] [indiscernible] at the long term. So just I repeat that 10 years ago, all the analysts and investors say that we are too cautious, and we are now happy to be cautious.
Okay. And one last question, if I may, just on GMR airports. Yes, you've had a lot of questions on why you didn't bail out from the second installment on payments. Wasn't there any macros? Weren't you able to just wait and see? Obviously, you are still happy to go ahead with the deal. But can you just remind us a bit why you stick with it despite a pretty challenging conditions and actually the changing conditions?
There is macros, first point. Second point, we -- it's our duty to check if it's good or not to activate this macros. The part of our reflection is also linked by the fact that we want to create an industrial partnership. And we want to preserve the good relationship with the GMR family. After, business is business. So we are very -- for the moment, very happy to go ahead and to close the second step. But at which condition, it's your question. For us, for the moment, to -- for the second closing, there are 4 main condition, the conditions presented from the 7 states of GMR airport investment: the first cities, it's RBI approval; the so second cities, it's a governmental approval; the third cities, it's GMR shareholders' approval; and the fourth is the Philippine Competition Commission approval. Now the government approved our deal, and the GMR shareholders approved also the second credit. The RBI approval is ongoing under the good [ part ]. That is very clear for us and a very positive feedback for the moment. But we have to wait the approval of the Philippine Competition Commission. It's not a huge problem, but due to the government lockdown in Philippine, it's not possible now to have the feedback in this condition. So probably to close the second step of this operation, we have to wait the end of June. So we have enough time to discuss. But for us, it's very important to stabilize our footprint around the world. As I say, in India, we have a specific traffic, a specific growth with a domestic -- huge domestic traffic, with a different behavior than the European and the American people. But for us, it's -- and for all the Indian people, it's vital to fly. So it's very important to preserve this value creation for the next years. So we are very confident and very happy to continue this deal. But I repeat that, business is business, and we have to check all the situation.
We'll move on to our next question from Ruxandra Haradau-Doser from Kepler.
Three questions, please. First, a follow-up on your -- on a previous answer. We are now at the end of April, so what is your cash burn in Paris in April? And from the EUR 2.5 billion cash you currently have, what is the total cash restricted for external activities? Second, what exactly do you mean we support measures in favor of airlines particularly affected by the outbreak? Do you continue to invoice airlines as before the crisis? Do expect an increase in trade receivables at the end of Q2? And how long do you expect these support measures to be in place? And third, could you please remind us if you have covenants and what these covenants are, please?
Okay. Thank you, Ruxandra. So in term of cash, for the moment, we have a good situation in term of cash after these new bonds. And we can see that we have EUR 2.5 billion. After we have also some facilities for around [ EUR 1 million ], if it's necessary. And we have another way to stabilize our situation. So for the moment, we don't have a huge problem in terms of cash. And just all this cash is available to assume the current needs of the company. In term of cash-out, we have just a different element that I mentioned previously, included the reimbursement at the beginning of May of a specific bond for EUR 500 million, including the closing of -- closing 2 of GMR airports for EUR 670 million and including part of our CapEx plan that we try to reduce, including also our OpEx. To answer 2 question, just to give you an element, but be careful with this element. In terms of cash-in and cash-out for the third -- the 2 first weeks in April, we are globally not [ whole ]. We have the same amount in terms of cash-in, then we have a moment in term of cash-out. But the part of the cashing is linked by the previous activities in March, at the beginning of March, before the peak of the crisis. So for the moment, we have -- we try to reduce maximum cash-out. And we don't consume our new cash linked by the bond issue. Second question, the support measure. It's good for us to support the airlines, first, by we're in the same boat and its airport community. But second reason is the fact that it's a good way to accelerate the recovery. For example, when we -- we suspend the parking fees for the aircraft immobilized on the Parisian airport, just immobilized because of the crisis. We have all aircraft in our airport ready to start. Second point, the rental as leasing expenses, as you know, for the rental and the leasing expenses located in the closed terminal and are also suspended, it's very important for us because when you suspend this rent, we have an impact in our financial trajectory. But we have also a huge incentive to optimize all our infrastructure and to optimize the situation of our clients. So for us, we have an impact going now in our financial situation, clearly, but it's a good way to work together to accelerate the recovery or to optimize our infrastructure. And for the moment, we are very happy with this strategy. And the third support measure, it's the possibility to accompany the difficulties of our clients to pay -- just to pay the -- all the activities in our airport. So we try to adapt the payment condition just to accompany the recovery of the traffic. Because we know when you have an airline, we have a different cycle in term of cash. And if we don't have enough cash to launch a new line or to recover the traffic, it's a problem for the airlines, but it's also a problem for the airport. So if we have the possibility, we check with our situation, we tried to postpone the payment and to wait a good recovery of the traffic. That is important for us. And your last question is about the covenants. We have covenants for the moment. We are in speaking terms with all the stakeholders. The fact that we have a covenant, it's not the fact that we have to act out to execute this covenant. It's just a way to discuss. So now we are in the discussion. It's a good discussion. It's a normal discussion. And for the moment, we are confident to conclude in a good way. Thank you. Thank you for your question.
We'll take our next question from the line of [ Sharon Vincent ] from Columbia Trading.
I have one left, which is basically about the ratings. How do think the rating agencies review this unusual situation? Are they willing to look through this year and look at the rating on a longer-term horizon? Or would you expect them to react quite negatively, the knee-jerk reaction to the current 2020 situation?
So for the moment, I know that we need some view about the current situation and long-term strategy. But a large part of my job and the job of all my colleagues is to -- just to operate and to try to find a good solution for the current situation. So it's a little bit early to speak about that. And for the moment, it's not a question for us. It's probably a good answer because -- for the question -- for the moment, we are confident to have a recovery, not a huge recovery, a progressive recovery in 2020, in 2021. And for that, it's -- we are fully mobilized for that. So the impact of the rating, it's not the question for the moment for us.
Okay. And if I can just follow up one -- one just to confirm the [indiscernible] from the liquidity point. This is my final one. Did I understand correctly that you have about EUR 1 billion in available bank lines on top of the cash?
Yes.
We'll take the next question from the line of Siobhan Lynch from Deutsche Bank.
Just 2 quick ones from me, mainly on the international segment. In terms of the ongoing processes for tenders that you mentioned at the full year, I'm assuming that most of you, at the moment, you've kind of halted or have been halted. But thinking about the rest of 2020 and 2021, are you -- is there a consideration you're looking at in continuing to bid in these? So I think Almaty was [indiscernible] at 40%. And then just secondly, in terms of the cost-cutting that you are able to do at that TAV and AIG, you explained in Paris that a lot of your staff are on the government unemployment plans. Is there similar kind of protections in place on these platforms for you? And what kind of discussions have you been having with the relevant governments there to kind of help with that?
So thank you for the question. In terms of international development, we are very agile and pragmatic, very agile and pragmatic because probably it's good to finalize the current discussion, finalizing Almaty airport for TAV in Kazakhstan, finalizing some of the small projects for ADP and finalize a huge project that is GMR airport. For the other opportunities, we check this opportunity because that, for us, it's a good opportunity because with a low price and low competition in some airports around the world. But perhaps also a huge effort that is not very aligned with our current financial situation. So pragmatic, agile, we are -- our team check all the opportunity now and study if it's possible to go or not. In term of cost-cutting plan in TAV and in Amman, clearly, we have a huge cost-cutting plant in TAV and Amman for -- so go for around EUR 100 million, EUR 125 million, if I remember well, with [indiscernible]. So we -- in our cost-cutting plan with specific figures, with EUR 270 million, we have just for the moment EUR 125 million for Paris. So we can see a huge part of the cost-cutting plan in our subsidiaries. That is very important for us. Just be careful that the fact in Paris, we have the unemployment system, that it's not the case around the world. So it's EUR 125 million in Paris plus the unemployment system. That is around between EUR 20 million and EUR 25 million each month. And for TAV and for Amman, clearly, we speak a lot with the local authority. We speak about the economic model of all the concession, we speak about the covenant. We -- so clearly, we are in this process. And now we don't expect a huge number. Thank you for your question.
We have 2 remaining questions in queue. We'll take our next question from the line of Jenny Ping from Citi.
Jenny here. Just one question on the unemployment schemes in France. Based on my understanding, they're clearly available under the current lockdown conditions. Are they -- has the state already said that they will continue to make them available once the lockdown ends? Or will you be looking for specific support from the government to extend that employee scheme to help you? Because presumably, you're not going to be at full capacity on the day of the end of the lockdown and will remain to need some further government support.
So thank you for your question. First of all, we don't ask for government support for tax aspect, social aspect, commission in term of payment commission and so on. We have just one help, that is unemployment system, this system. That is a huge and favorable system for us. And in this system, we can ask for unemployment system for 6 months and with the possibility to have 6 months extra. So now we have just asked for 6 months. And we put in the unemployment system our employees for 3 months. In this case, we are very, very agile. We can stop the system. And if we meet part of the acknowledge of our employees, but we can also the week after, put in the system the same people in -- if it's possible. So for example, when we have to launch a specific [indiscernible] operation in our terminal, we need 3 people in the employment system, so we stopped the employment system the next week for 1 week. And after, the 3 same people go to -- go back to this unemployment system. And this system is for 6 months. It's possible to ask for 6 months extra, but for the month, we expect a recovery in term of traffic. And we try to adapt, that is very important for us, our strategy to be very agile if we have a long-term impact. For the moment, we are very happy to be enough agile to assume the impact between March and September. We have to try to prepare a scenario if we have an impact after September.
We'll take the last question from the line of Charles Maynadier from Kempen.
Just one question on the dividend. So should we completely write off the final dividend of 2019 or assume some sort of compensation in 2020 or beyond? And then more generally on the dividend policy for 2020 and then in the medium term, the payout ratio based on earnings which would have probably been nonexisting this year and on which visibility is quite low even thereafter, also considering the new leverage level, which is arguably a little bit high, how should we look at the dividend development in the medium term? If you could give any color on that and how you look at it, would be appreciated.
So thank you for your question. It's difficult to answer that question because now we have more than 70% of the people in the unemployment system in Paris. So speaking about dividends, it's not very easy. I'm not very -- it's not our priority, clearly. That is clear. The fact that probably we have a huge impact in this year impacting our revenue, as you know, with EUR 2.5 billion negative impact in this analysis scenarios but also an impact in our net result. And all in all, that is clear. See, we are confident to confirm our payout ratio at 60% of the net result but probably not in 2020 and probably not in 2021. It's difficult to know what is the trend, the situation of our net results at the end of this year. That is difficult to know if in 2021 we have a full recovery. So -- but in fact, we know that our job is to pay dividends for all our shareholders, so be confident that we try to do that, but we try to do that with a good social behavior, and we try to do that with this difficult situation.
Okay. So there will be, let's say, no earnings this year, how would you -- what would just have to do in terms of payment then?
I think we will give more color when we have a recovery. It's difficult to know, and we'll have to check the [ labor ] aspect and the social expectation of that.
So that concludes today's question and answer session. I'd like to turn the conference back to you for any additional or closing remarks.
So thank you for all your questions, and see you in -- at the end of July for the half year result. Thank you very much. Bye-bye.
This concludes today's call. Thank you for your participation. You may now disconnect.