Aéroport de Paris - 2018 Registration document

BUSINESS OVERVIEW 06

DESCRIPTION OF ACTIVITIES BY SEGMENT

Leased buildings Usable commercial space at the end of 2018 totalled 985,500 sq.m. The occupancy rate is over 90% and The cost of financial vacancy is 94%. Leased surfaces break down as follows:

Aeronautical

Diversification

Total

(in thousands of sqm)

Rented places Cargo buildings

488 199 232

498

986 205 232 109 190

6 0

Maintenance hangars

Business and logistics premises

16

93

Offices

24

166 152

Internal rentals Other buildings

6 11

158

81

92

Real estate activity positioning Groupe ADP has a leading position on the Île-de-France region’s real estate market thanks to the following assets: ◆ significant land reserves: the ability to provide large, single-use areas of land within districts that are already largely connected to the airport provides an opportunity for companies seeking to group together large office spaces, warehouses and courrier services close to Paris; ◆ quality assets: spread out over three complementary platforms within airport cities, Groupe ADP's assets are developed with a view to sustainability criteria (eco-design, eco-construction) and with very demanding certification targets (HQE "Excellent", BREEAM "Very Good");; ◆ a privileged geographic location because of the proximity to Paris and the location of the assets and land at the heart of two of the three largest economic hubs in the Paris region, which are an essential driver of the national and regional economy; ◆ improved access by public transport over time: thanks to the completion of CDG Express and the Grand Paris Express, line 17 to Paris-Le Bourget in 2024 and Paris-CDG in 2030, line 14 to Paris-Orly in 2024 and line 18 in 2018. In addition, Groupe ADP has significant real estate development opportunities: ◆ some districts offer considerable potential for diversification; ◆ a strategy to win market share has been rolled out, notably for offices, hotels, shops, logistics premises and cargo courrier services; ◆ the asset management policy adopted enhances the value of the existing land and real estate assets (remodelling, renovation or demolition, etc.). Real estate activity strategy In terms of its real estate business, Aéroports de Paris hopes to perform at the same level as a first-class integrated property operator, making use of the development potential provided by the airport and its proximity to Paris and benefiting from long-term leases, leading to secure revenues over the long term. This ambition rests on a strategy of developing Airport Cities that consists of creating districts offering companies and their employees a good quality of life (ease of access, sustainable planning, high quality landscaped areas and a diverse range of shops and services, etc.). The economic model for the real estate business is based on two markets (airport real estate and real estate diversification, offering prospects for value creation over the medium-term) and in two business lines (manager and developer).

The manager business line is founded on a solid model with diversified asset classes (hotels, offices, shops, business and logistics) and lease maturities offering long-term revenue visibility. Groupe ADP intends to continue strengthening service quality to customers, with a sustainable development policy (certified environmentally-friendly buildings, sustainable area planning, etc.), upgrading holdings and securing sites. Groupe ADP continues to pursue its strategy as an investor in the most profitable asset classes, particularly in the services (offices, hotels, shops), business and logistics sectors while pursuing an active policy to upgrade existing assets and acquire land adjacent to the airports to prepare for the future. After analysis of the projects, the choice of acting simply as developer remains possible if the investment operation proves to be insufficiently profitable or if a marked risk of obsolescence is identified or if the asset envisaged is too specific. 2018 was marked by the realisation of seven projects as an investor. These are: ◆ at Paris-Charles de Gaulle airport: the delivery of the Baïkal office building (12,900 m 2 ) in the Roissypole Est area, the continued building work on a 267 room, 4 star hotel under the Innside by Melia brand (2019) and the launch of a Courtyard / Residence Inn by Marriott complex with 323 rooms (2021) in Roissypole Ouest and the launch of the 22,000 m 2 SC4 Cargo Station (2020) in the Cargo City; ◆ at Paris-Orly airport: the delivery of the Roméo business park (22,000 m 2 ) in the cargo area, the launch of the 23,500 m 2 Belaïa office building (2020) jointly with Covivio (formerly Foncière des Régions); ◆ at Paris-Le Bourget airport: the joint construction project with André Chenue SA (Horus Finance Group) of an art conservation centre of 24,800 m 2 (2020) located in the eastern part of the airport. These projects illustrate the strengthening of Groupe ADP’s position as investor in a context of land shortage, traffic growth, and with the arrival of the Grand Paris Express in the medium-term, which should improve the attractiveness of the area and land valuations. The challenge over the next few years will be to invest in undeveloped land to preserve long-term growth capacity, and in built-up land, on assets whether related to airport activities or not, in orderto expand our offering to customers. Thus, Groupe ADP aims to contribute to the creation or densification of its Airport Cities, by promoting its land through the conversion of highly obsolete industrial territories of old airport areas, the development of service offerings and the anticipation of accelerated land consumption, by focusing on densification and offsetting this by external biodiversity projects. Furthermore, Groupe ADP has high-rental upside lease potential until 2045 as legacy land leases expire. The Group has the possibility when leases end, as provided for in current land leases, to require either the demolition of the assets to enable a new programme, or to take over ownership of the assets and receive rents for built-up

82

AÉROPORTS DE PARIS ® REGISTRATION DOCUMENT 2018