Aéroport de Paris - 2018 Registration document

BUSINESS OVERVIEW 06

DESCRIPTION OF ACTIVITIES BY SEGMENT

On 2 April, Aéroports de Paris published the public consultation document on the Economic Regulation Agreement for the 2021-2025 period, available at www.aeroportsdeparis.fr, which presents the detailed proposal for the 2021-2025 ERA. Based on an assumption of an average increase of 2.6% in passenger traffic per year, Aéroports de Paris’ proposal for the 2021-2025 ERA focuses on: ◆ an ambitious provisional investment programme for the regulated scope 1 of around €6 billion, meeting short and medium term needs, with a priority given to accessibility and efficient traffic flow, and also long-term needs with the launch of work on the future Terminal 4 at Paris–Charles de Gaulle; ◆ traffic growth in all areas and, in particular, international, reflecting the attractiveness of the Paris platforms in terms of infrastructures, quality of service and tariff positioning; ◆ reinforced competitiveness thanks to a policy of controlling current expenses 2 in the regulated scope (growth limited to +2.4%, including inflation, on average per year, despite the numerous infrastructure deliveries), ensuring a moderate pricing strategy with a proposed annual tariff change limited to the CPI 3 +1.35%; and ◆ an objective of convergence for the return on capital employed for the regulated scope to the level of the WACC 4 assessed at the limits of the regulation agreement (estimated at 5.6%) on average over the duration of the agreement. In order to continue the discussions with air carriers on this Regulation Agreement proposal, Groupe ADP wanted to extend the consultation phase by organising several Cocoéco sessions during April, May and June 2019. Other meetings led by IATA are also planned. In accordance with the regulatory procedure, with the publication of the public consultation document, Aéroports de Paris has now entered into a period of public consultation concerning its proposal for the 2021-2025 Economic Regulation Agreement. In accordance with the regulations, this phase will last for onemonth andmay be extended for an additional 15 days by the Minister responsible for civil aviation. Following this consultation, the Minister responsible for civil aviation will take the matter to the Airport Consultative Commission ( Commission Consultative Aéroportuaire ), which then has two months to provide a motivated opinion. This opinion is made public. The Minister responsible for civil aviation then brings the matter before the Independent Supervisory Authority for Airport Fees (ASI), which gives its assent to the draft Economic Regulation Agreement. The ASI has two months to provide its opinion and this time period may be extended for an additional two months in exceptional and duly motivated circumstances. Security Description of security activities Government authorities are responsible for organising airport security and can delegate its implementation to airport operators or other stakeholders. Under the authority of the Prefect of police of Paris, assisted by a Deputy Prefect for the safety and security of airports and under the supervision of government authorities, Aéroports de Paris is required to put the following in place: ◆ a security check and screening system for 100% of passengers (passage through a gate containing a metal detector) and all cabin baggage and personal effects (examined by X-ray). Since 31 January 2014, the checking of liquids, aerosols and gels using explosive detection equipment suitable for these types of products. Since 1 September 2015, security checkpoints have new equipment also enabling explosive detection on both passengers and cabin baggage;

An examination of the need to revise the contract would apply in the case of this indicator exceeding, for three consecutive years, the value QTMM(n) defined below, or remaining, for three consecutive years, below the value QTmm(n): 2020 QTMM(n) 98,420,000 102,876,000 107,215,000 111,856,000 QTmm(n) 94,837,000 95,336,000 95,548,000 95,858,000 Second condition: in the event that at the end of the calendar years subsequent to 2016, investment expenditure on the regulated scope, cumulative since 1 January 2016, does not reach 75% of the planned amount. Subject to the application of these conditions, and at the request of one of the Parties, where it believes that the new situation represents a substantial change to the economic conditions of the contract, they will agree to seek an amicable agreement on the principle and procedure for revising the Economic Regulation Agreement. In the case of an amicable agreement, the Parties will revise the contract within a timeframe of two months, with this timeframe starting, if required, from the date of the Airport Consultative Committee opinion (as laid down by article R. 224-4 of the French Civil Aviation Code). If no amicable agreement is reached within a period of one month following the request by the applicant Party, the Minister in charge of Civil Aviation will contact the Airport Advisory Committee within two weeks with regard to the principle and procedure for revising the contract. If the Airport Consultative Committee is of the opinion that it is necessary to revise the contract, the revision procedure will be implemented in line with this opinion and the Parties will revise the contract within a timeframe of two months, with this timeframe starting, if required, from the date of the Airport Consultative Committee opinion, as laid down by article R. 224-4 of the French Civil Aviation Code. In addition, at the request of one of the Parties, where it believes that there are exceptional and unforeseeable circumstances other than those mentioned above, and which represent a fundamental shift in the contract economics, requiring the contract to be amended or terminated, they agree to seek an amicable agreement on the need for amendment or an early termination of the contract. In the event of an amicable agreement on an amendment, the Parties will also determine the preparation procedure. If no amicable agreement is reached within a period of one month following the request by the applicant party, the Minister in charge of Civil Aviation will consult the Airport Advisory Committee within two weeks with regard to the principle and procedure for revision or an early end to the contract. If the Airport Consultative Committee is of the opinion that it is necessary to revise the contract or that it is advisable to bring it to an end, the Ministers in charge of Civil Aviation and the economy will order the contract to be revised or brought to an early end, in line with the procedures recommended by the committee. In the event that this contract is terminated early, and unless the Parties agree otherwise, the fee rates will remain in force until the end of the pricing period stipulated by the contract. Preparation of the 2021-2025 Economic Regulation Agreement Having committed to an in-depth consultation in 2018 with air carriers and listened to their expectations and priorities, during March 2019, Aéroports de Paris presented to them and to their member representatives of the Economic Consultative Commission (Cocoéco), the details of its proposal on the main focuses of the next Economic Regulation Agreement (ERA) for which the five related tariff periods cover the period from 1 April 2021 to 31 March 2026. N 2017 2018 2019

1 The regulated scope is defined by Article 1 of the decree of 16 September 2005 relating to fees for services rendered in airports. 2 Internal and external regulated costs excluding depreciation and amortisation, taxes and levies. 3 Consumer price index. 4 Average Weighted Cost of Capital.

72

AÉROPORTS DE PARIS ® REGISTRATION DOCUMENT 2018