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      • En route CZ
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      • Terminal CZ - France Zone 1
        • Unit cost
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        • Unit cost
        • AUCU
        • Regulatory Result

    Cost-efficiency - France

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    Terminal charging zone - France Zone 1

    Unit cost (KPI#1)

    Actual and determined data
    Total costs - nominal (M€) 2020-2021 2022 2023 2024
    Actual costs 110 NA NA NA
    Determined costs 114 59 60 62
    Difference costs −5 NA NA NA
    Inflation assumptions 2020-2021 2022 2023 2024
    Determined inflation rate NA 1.2% 1.3% 1.4%
    Determined inflation index NA 106.3 107.7 109.3
    Actual inflation rate NA NA NA NA
    Actual inflation index NA NA NA NA
    Difference inflation index (p.p.) NA NA NA NA
    Focus on unit cost

    AUC vs. DUC

    In the combined year 2020-2021, the terminal AUC was -6.1% (or -11.49€2017) lower than the planned DUC. This results from the combination of higher than planned TNSUs (+1.8%) and lower than planned terminal costs in real terms (-4.4%, or -4.8 M€2017).

    Terminal service units

    The difference between actual and planned TNSUs (+1.8%) falls within the ±2% dead band. Hence the resulting additional terminal revenue is kept by the ANSPs.

    Terminal costs by entity

    Actual real terminal costs are -4.4% (-4.8 M€2017) lower than planned. This is driven by the main ANSP, DSNA (-4.6%, or -4.8 M€2017), the MET service provider (-0.1%, or -0.01 M€2017) and NSA costs (-4.5% or -0.03 M€2017).

    Terminal costs for the main ANSP at charging zone level

    The lower than planned terminal costs in real terms for DSNA (-4.6%, or -4.8 M€2017) result from:
    - lower staff costs (-2.3%);
    - lower other operating costs (-4.2%);
    - lower depreciation (-12.0%), mainly in relation with the postponement of commissioning from 2021 to 2022 (contractual negotiations for SYSAT project which were expected to be concluded by the end of 2021 have been delayed to early 2022 therefore shifting some expenditures from 2021 to 2022, including some related OPEX) and the transfer of some investment costs to project-related OPEX costs;
    - lower cost of capital (-0.5%), due to decrease in net current assets (8.2%), compensating increase in NBV (+4.9%) and WACC (+0.07 p.p.);
    - higher deduction for VFR exempted flights (+70.3%).

    Actual unit cost incurred by the users (AUCU) (PI#1)

    AUCU components (€/SU) – 2020-2021
    Components of the AUCU in 2020-2021 €/SU
    DUC 196.26
    Inflation adjustment 0.73
    Cost exempt from cost-sharing −3.54
    Traffic risk sharing adjustment 0.00
    Traffic adj. (costs not TRS) −0.22
    Finantial incentives 0.00
    Modulation of charges 0.00
    Cross-financing 137.84
    Other revenues −1.81
    Application of lower unit rate 0.00
    Total adjustments 133.00
    AUCU 329.27
    AUCU vs. DUC +67.8%
    Cost exempt from cost sharing by item - 2020-2021 €'000 €/SU
    New and existing investments −2,066.5 −3.49
    Competent authorities and qualified entities costs −27.9 −0.05
    Eurocontrol costs 0.0 0.00
    Pension costs 0.0 0.00
    Interest on loans 0.0 0.00
    Changes in law 0.0 0.00
    Total cost exempt from cost risk sharing −2,094.4 −3.54
    Focus on AUCU

    The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in combined year 2020-2021 for France terminal charging zone 1 (329.27€) is +67.8% higher than the nominal DUC (196.26€) which includes DUC initially charged: 110.46€; and to be charged: 85.81€. The difference between these two figures (+133.00€/SU) is due to:
    - cross-financing France terminal charging zone 2 (+137.84€/SU);
    - the positive inflation adjustment resulting from higher than planned inflation (+0.73€/SU);
    - the deduction of the traffic adjustment (-0.22€/SU) for the costs not subject to traffic risk sharing to be reimbursed in future years;
    - the deduction of the other revenues (-1.81€/SU);
    - and the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (-3.54€/SU).
    The share of regulatory result in the terminal AUCU is 4.2%.

    Regulatory result (RR)

    Focus on regulatory result

    DSNA net gain on activity in the France terminal charging zone 1 in the combined year 2020-2021
    DSNA’s net gain amounts to +4.8 M€ due to gains of +2.9 M€ from the cost sharing mechanism and of +1.9 M€ from the traffic risk sharing mechanism.

    DSNA overall regulatory results (RR) for the terminal charging zone 1 activity
    Ex-post, the overall RR taking into account the net gain from the terminal activity mentioned above (+4.8 M€) and the actual RoE (+3.4 M€) amounts to +8.2 M€ (7.6% of the terminal revenues). The resulting ex-post rate of return on equity is 41.3%, which is higher than the 17.1% planned in the PP.

     
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