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

owns with Lagardère Duty Free (a company of the Lagardère Group), and which operates the Beauty, Alcohol and Tobacco activities as well as part of the Gourmet Food and Fashion & Accessories business; ◆ leisure and convenience activities: Newsagents, Bookshops, Photo- Video-Sound, Souvenirs, Gifts, Toys and Pharmacies. A joint venture, Relay@ADP, covering part of this scope has been in existence since 4 August 2011, and runs the Newsagents, Bookshops, Convenience and Souvenirs activities. The company is 49%-owned by Aéroports de Paris, 49% by LagardèreTravel Retail, and 2% by Société de Distribution Aéroportuaire. Groupe ADP uses a revenue per passenger indicator (Sales/Pax) to better differentiate retail performance as reflected in the revenue from the airside shops, and the performance resulting from the airport manager’s commercial negotiations, as reflected in the commercial fees. It is calculated as the total sales of airside shops divided by the number of departing passengers (52.6 million passengers in 2018). The recent renegotiations with SDA and Relay set the new contractual term at 31/12/2022.

The retail activities carried out in landside areas are located before security check-points (customs, border police, security checks) and anyone can make purchases there. Retail activities carried out in airside areas are located after the security check-points. Airside includes part of the space called the “Schengen Area”, which no longer involves border police controls, and the “International Area”, where passengers on international flights to all countries outside the European Union, or to French overseas territories, can purchase duty free products. Airside and landside shops The proposed range of shops within Aéroports de Paris’ terminals falls into two broad categories: ◆ strategic activities which embody the positioning as “The ultimate Parisian shopping & dining experience” and which represent the areas with the best returns 1 which are Beauty (perfumes and cosmetics), Fashion & Accessories and Art of Living (gastronomy, confectionery, wines and spirits). Aéroports de Paris has chosen to operate these businesses through Société de Distribution Aéroportuaire 2 , which it co-

2018 32.3

2017 33.0

2018/2017

Sales/Pax (in euros)

Duty Free zone Duty Paid zone

-2.1% -4.2% +0.6%

7.4

7.1

TOTAL

18.4

18.2

06

digital screens) and with richer and more diversified event-driven content. It also enables the best possible use of the visibility potential provided by Groupe ADP airports and optimisation of the financial benefits for partners. The governance procedures, and the procedures for excluding the joint partner, are comparable to those applicable to Société de Distribution Aéroportuaire. In addition, Média Aéroports de Paris shares are inalienable until end of 2022. Banking, foreign exchange, car rentals and other retail activities Aéroports de Paris receives revenue from car rental companies, banking and foreign exchange activities and several for-fee services (luggage wrapping and storage…). Commercial income is based on airport revenues. Rental income comes from leases for non-retail space within the terminals. Strategy relating to retail activity Aéroports de Paris’s commercial strategy is based on four pillars: ◆ two pillars for supply: ◆ a marketing positioning “The Ultimate Parisian shopping and dining experience”, implemented via products (centred on three product families that are emblematic of French know-how: Fragrances & cosmetics, Luxury Fashion and the French Art of Living), the design of retail spaces conceived as Paris shop windows, and service and quality. This strategy is accompanied by an increase in the total area dedicated to shops (bars, restaurants and shops both landside and airside),

In 2018, revenue per passenger airside (Shops & Bars and restaurants) was €20.9, of which €18.4 for the boutiques. Note that China represents 2% of the Group’s total traffic, but 14% of revenue for airside shops. Bars and restaurants Aéroports de Paris receives income from the operators of bars and restaurants, essentially based on the revenue from the business in question. For Aéroports de Paris, revenue from retail activities is therefore closely linked to the gross revenue received by these operators. Until 2015, the bars and restaurants were mainly operated by third parties, although Relay@ADP opened a first restaurant unit under the Kayser brand in December 2012. As of 1 February 2016, a joint venture, EPIGO, 50%-owned by Aéroports de Paris and 50%-owned by Select Services Partner (SSP) became the operator for fast food in a number of terminals at Paris-Charles de Gaulle. At Paris-Orly, the bars and restaurant business is managed by several operators. Advertising Advertising at Groupe ADP airports is managed by Média Aéroports de Paris SAS, a French simplified joint stock company created in June 2011 and 50% co-owned by Groupe ADP and 50% by JCDecaux France SAS. The company has been fully consolidated since 2016. Média Aéroports de Paris’ primary function is to operate and market advertising space and, additionally, to run a television network dedicated to passenger/airport relations at airports operated by Groupe ADP in the Paris region. An completely overhauled range was introduced in 2011, with the main aim of improving service quality and innovation, through newmedia, which are fewer in number but more modern (these were designed by Patrick Jouin, the internationally renowned designer, and include a substantial number of

1 Measurement indicator calculated by dividing the revenue earned by shops by the surface occupied in sq.m. 2 Activity described in the paragraph Joint-ventures activities.

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AÉROPORTS DE PARIS ® REGISTRATION DOCUMENT 2018