Aéroport de Paris - 2018 Registration document

BUSINESS OVERVIEW 06 OVERVIEW OF THE MARKET

of this document. At overall Group level, the forecasts would lead to expectations of: ◆ cumulative Group traffic of around 400-450 million passengers in 2025 (compared to 281 million today), which could represent a global market share of around 7.5% to 8.5% (compared to around 6.5% in 2018); ◆ a number of airports operated by the Group in 2025 of between 30 and 40 airports (compared to 25 airports at end 2018); ◆ an increase in Group revenue and EBITDA between 2018 and 2025 of around 40% to 50% with an EBITDA margin on revenue of between 40% and 45% in 2025; ◆ an increase in Group operating income from ordinary activities between 2018 and 2025 of around 50% to 60% with an operating income from ordinary activities to revenue margin of around 30% in 2025. All these estimates correspond to trends and preliminary insights based notably on Groupe ADP's proposal for the 2025 Economic Regulation Agreement, which is liable to change up to the contract's signature.

Regarding the the extra-financial objectives, Groupe ADP has set the following targets for the 2020 horizon: ◆ extra-financial rating: group rating asumption (ADP S.A. and its 100% owned subsidiaries) of 83/100 (objective exceeded in 2018 with a rating of 86/100); ◆ energy final consumption: satisfied up to 15% of the newable energy sources; ◆ car parks (light vehicles): composed of 25% clean vehicles. The modification of these objectives compared to the ones announced on the 15 th October 2015 are also presented on Chapter 9.3. At the Investors' Day on 5 April 2019, the Group communicated a certain number of forecasts by 2025, which do not constitute targets but translate a medium-term vision that supplements the targets in the Connect 2020 plan, which are unchanged since their latest update on 14 February 2019. This vision of each of the Group's business lines (regulated Parisian aviation activities, retail activities and real estate activities in Paris, and international activities) is described in each of the corresponding sections

6.2

OVERVIEW OF THE MARKET

Airport operations Groupe ADP is an airport operator

While the assignment and allocation of take-off and landing slots fall under the authority of an independent organisation, Aéroports de Paris is responsible for assigning airlines to the various terminals within a single airport and, according to specific procedures, to the different airports. Airlines and their ground handling assistance services The airport operator’s responsibility toward passengers ends when the passenger is placed under the airline’s responsibility. In practice, this is from the beginning of the boarding procedure to the end of the passenger disembarkation procedure. Airlines are also responsible for all aircraft loading and unloading procedures. They also rely on service providers, who are known as ground handling companies. Airlines may cooperate with each other through different arrangements, such as interline agreements that enable the point-to-point handling of connecting passengers, or the sharing of codes that allow an airline to sell tickets for a flight operated by its partner. Although alliances (Skyteam, Star Alliance and Oneworld 1 are the preferred framework for cooperation between intercontinental carriers, smaller scale forms of partnership are increasingly emerging. These airlines serve different customer segments with a differentiated service offering and a portfolio of destinations that are interconnected through their own network (their hubs) or those of other airlines. Although all carriers expect an excellent quality of ground service from the airport operator, if they are members of an alliance they usually also want access to facilities, products and services that make connections easier, to be brought together under one roof (in the same terminal) and to be able to share facilities. In the medium-haul point- to-point market, the model inspired by low-cost airlines is also starting to dominate, including within traditional airlines. The main focus is on reducing operating costs in order to offer customers the lowest prices.

Present at each step of the flows of passengers and goods, the operator’s role is to optimise the various flows intersecting at the airport: aircraft flows in the aeronautical areas, passenger flows in the terminals and through the various security control systems, luggage flows, cargo flows and supply flows between the landside areas and the aircraft. It must also ensure the interface between the various parties to which it provides services and facilities. For this: ◆ it designs and organises the construction of airport infrastructure and access; ◆ it provides airlines and other professional service providers with infrastructure and facilities such as check-in counters, boarding areas, baggage carousels, aircraft parking areas, offices and lounges, which are allocated to users throughout the day. Groupe ADP also supplies airlines with services such as telecommunications, power, utilities and waste treatment; ◆ it determines the establishment of and rents out commercial spaces, especially shops, bars and restaurants; ◆ it welcomes and informs passengers, facilitates traffic and ensures that services are available to enhance their comfort such as car parks, hotels, telecom services, personalised reception; ◆ it carries out, under the control of government authorities, air transport security measures. Aéroports de Paris’ general operating conditions are detailed in its specifications, described in the paragraph in Chapter 6 “Specifications”.

1 The members of the SkyTeam alliance in Paris are Aeroflot, AeroMexico, Air Europa, Air France, Alitalia, China Eastern, China Southern, Czech Airlines, Delta, Kenya Airways, KLM, Korean Air, MEA, Saudia, Tarom and Vietnam Airlines. The members of the Star Alliance present in Paris are Adria Airways, Aegean Airlines, Air Canada, Air China, Air India, ANA, Asiana Airlines, Austrian, Brussels Airlines, Croatia Airlines, Egyptair, Ethiopian, Eva Air, LOT Polish Airlines, Lufthansa, SAS Scandinavian Airlines, Singapore Airlines, Swiss, TAP Portugal, THAI, Turkish Airlines and United. The members of oneworld present in Paris are American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, LATAM, Qatar Airways and Royal Jordanian.

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AÉROPORTS DE PARIS ® REGISTRATION DOCUMENT 2018