Aéroport de Paris - 2018 Registration document

ORGANISATION CHART

BUSINESS OVERVIEW

PERSONS RESPONSIBLE FOR THE REGISTRATION DOCUMENT AND ANNUAL FINANCIAL REPORT

STATUTORY AUDITORS

SELECTED FINANCIAL INFORMATION

RISK MANAGEMENT AND CONTROL

INFORMATION ON THE COMPANY

REAL ESTATE ASSETS AND FACILITIES

REVIEW OF THE FINANCIAL POSITION AND INCOME

EQUITY AND CASH FLOWS

Having previously focused on developing the capabilities of Paris- Charles de Gaulle and the quality of service of the Parisian airports, the Groupe ADP is now concentrating on developing its potential to meet one goal: to be a leading group in airport design and operations. To this effect, it intends to implement its activities for the 2016-2020 period based on CONNECT 2020’s three main strategic priorities: ◆ optimise, by making the most of the Group’s resources; ◆ attract, by targeting excellence; ◆ expand, by stimulating and sharing sustainable growth. The three priorities, which run right across the Group’s activities, are split into nine commitments which it has made to its stakeholders, thus assuming its role as an integrator to unite all players for the benefit of the aeronautical sector and regional competitiveness, in line with the new challenges of a competitive, open, complex and uncertain world. OPTIMISE: Make the most of the Group’s resources Groupe ADP’s first priority is to consolidate its fundamentals in order to create a solid base favourable to the sustainable growth of its business activities. This optimisation aims to guarantee the operational performance of the airports, strengthen the performance of its companies and improve the group’s financial performance. ENSURE OPERATIONAL PERFORMANCE The ambitious and selective CONNECT 2020 investment programme, in the amount of €4.6 billion, of which €3 billionis allocated to the regulated scope, focuses on the optimisation of facilities and the transformation of infrastructure and equipment to ensure their robustness, productivity, adaptability and quality. Thus, in July 2018, the extension to Hall 1 of the West Terminal at Paris-Orly airport was inaugurated, offering 6,000 m2 in additional surface area and taking Hall 1’s capacity from 4.8 to 5.5 million passengers per year. The renovation work for runway 3 was also launched in 2018 at this airport. The investment plan addresses capacity, security and quality needs and focuses on maintaining assets and ensuring regulatory compliance. It must also help to counter the growing spread and diversity of the facilities thanks to the deployment of a concept consisting of merging terminals as well as consolidating accessibility to, and the competitiveness of, the Paris-Charles de Gaulle hub and to compensate the fragmentation and disparity of installations by deploying an initiative to merge terminals. For this, work on the junction between the international Terminal 1 satellites and the Terminal 2B/2D junction continued at Paris-CDG airport in 2018. At Paris-Orly airport, part of the boarding lounge in the junction building was commissioned early from April to October 2018, over a surface area of 3,500 m 2 . In view of the opening of the Paris-Orly junction in Spring 2019, the names of the nearby car parks were changed at the end of 2018. Lastly, the studies on the future Terminal 4 at Paris-Charles de Gaulle continued throughout 2018 and meetings with local residents took place from October to December, to prepare the prior consultations that will Groupe ADP also intends to improve its internal organisation by optimising all its operating and functional methods for more efficiency and responsiveness (streamlining support business lines and functions, pooling operational units and on innovation for tools, management and working methods, etc.). After the creation in 2017 of the Airport Operations Department, which brings together operational and technical expertise to the service of take place from 12 February to 12 May 2019. STRENGTHEN COMPANY PERFORMANCE

As at 31 December 2018, TAV Airports, in which Groupe ADP owns 46.12%, directly managed 14 airports worldwide, mainly in Turkey, Europe and the Middle East. In 2018, TAV Airports’s scope was expanded with the acquisition of a 49% interest in the share capital of ICF, which holds the concession to operate Antalya airport, the second largest airport in Turkey in terms of international traffic. On 6 April 2019, commercial flights at Atatürk Airport, managed by TAV Airports, were transferred to the new Istanbul airport. TAV was officially informed by the Turkish Civil Aviation Authority (DHMI) that it would be compensated for the early termination of this concession, which had in theory been due to expire on 2 January 2021. Discussions on this subject have been initiated with the DHMI. Lastly, in 2018, ADP Ingénierie, a wholly-owned subsidiary of ADP International, acquired Merchant Aviation, a consulting firm based in the USA. ADP International benefits from the support of a strong local network, thanks to the installation of three regional offices in 2018: in Istanbul for the Africa and Middle East Region, in New York for the Americas Region and in Hong Kong for the Asian Region. Groupe ADP is a global airport group with presence in the major segments of the airport value chain in Paris and abroad. Thanks to this asset, the Group aspires to become an integrated provider of airport services by increasing the competitiveness and appeal of its Parisian base for its customers, by expanding its know-how and developing territories. Equipped with a robust economic model and strong development potential, Groupe ADP is able to take on the changes occurring in global air transport. While the number of worldwide passengers is doubling on average every 15 years, growth is gradually moving from Europe and North America to Asia and emerging countries. In addition, competition is increasing for connecting traffic between airports with the proliferation of hubs, particularly in the Gulf. Competition is also growing between low-cost airlines, which historically operated in short- and medium-haul traffic but have now entered long-haul traffic. However, it should be noted that the financial difficulties encountered by low-cost companies in 2018 have slowed down this change. These change are modifying the traditional models of airline companies and European airports, thus providing opportunities for the group, which intends to confirm its position as a major player in the airport value chain. Given this environment, the competitiveness of airlines is increasingly based on the airport’s assets: its ability to meet their growth and other new needs, as well as assist them in their efforts to ensure better management of operating costs. For airport managers, this approach means improving infrastructure quality and robustness, providing a suitable fee structure and first-rate quality of service and passenger facilities. CONNECT 2020 is Groupe ADP’s strategic plan for 2016-2020. It was developed to address this changing, high potential environment and to continue to help the Company evolve following its listing on the stock exchange in 2006. The CONNECT 2020 strategic plan is a natural extension of the Economic Regulation Agreement (ERA) signed with the government for 2016-2020, and sets out the objectives for regulated as well as non-regulated activities: retail activities via terminal shops and services, diversification of real estate (hotels, offices, etc.), subsidiaries and international holdings. Strategy The CONNECT 2020 strategic plan

06

45

AÉROPORTS DE PARIS ® REGISTRATION DOCUMENT 2018