ADP_REGISTRATION_DOCUMENT_2017

BUSINESS OVERVIEW 06

PRESENTATION OF THE ACTIVITY

In the three main airports, it provides facilities to accommodate passengers, airlines and cargo and postal services, and offers a range of services adapted to their needs. Groupe ADP’s expertise as an airport manager spans a network of 26 airports 1 . Groupe ADP, which strengthened its strategic partnership with TAV Airports 2 (which operates 17 airports 3 including Istanbul Atatürk), in 2017,

is among the largest airport groups worldwide, with 26 airports under management and more than 228 million passengers received in 2017 4 . Since 7 July 2017, TAV Airports, formerly accounted for by the equity method, has been fully consolidated in Groupe ADP’s financial statements under the International and airport development segment. Groupe ADP’s business activities are divided into five segments: aviation, retail and services, real estate, international and airport developments and others. They are detailed in this chapter, under “Description of activities”.

Simplified financial information

2017

2016

Operating income from ordinary activities (including operating activities of associates)

Operating income from ordinary activities (including operating activities of associates)

Revenue

EBITDA

Revenue

EBITDA

(in millions of euros)

Aviation

1,813 953 250

551 533 209

272 404

1,743

488 527 149

186

Retail and services

941 263

409 104

Real estate

161

International and airport developments

682

252

186

97

3

(49)

Other activities

217

25

9

223

29

14

Inter-sector eliminations

(298) 3,617

(2)

(2)

(321) 2,947

-

-

TOTAL

1,567

1,030

1,195

664

The group’s strengths Thanks to its exceptional strengths, diversification of activities and renowned expertise, Aéroports de Paris offers a solid profile and attractive growth prospects. A privileged location The group enjoys a highly favourable geographic positioning thanks to the following: ◆ the appeal of Paris and France, the number one tourist destination in the world, and of the greater Paris region, France’s largest economic region; ◆ a catchment area with an estimated population of 25 million within a 200 km radius, a large part of which is directly accessible by TGV from Paris-Charles de Gaulle airport; ◆ this is a central position, a two hour flight from most major European cities; ◆ the absence of other large airports within 300 km. This privileged location allows Aéroports de Paris to attract a large amount of point-to-point traffic (77% of total traffic in 2017) and to continue its development as a prominent hub.

Complementary airports adapted to future global traffic growth An airport system in Île-de-France composed of three complementary airports tailored to a diverse customer base Together, the three airports of Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget form a complementary offering for every type of air traffic: long and medium haul, domestic, connections, low-cost, leisure, charter and business. The ability of Paris-Le Bourget airport to handle business air traffic allows Paris-Charles de Gaulle and Paris-Orly airports to focus on commercial air traffic. Thanks to this complementarity, Groupe ADP serves a wide range of customers. It hosts the largest international airlines, as well as low-cost carriers and the three major international alliances: SkyTeam, Star Alliance and oneworld. In this way, it has traffic that is balanced between major geographical areas. These elements allow it to diversify its growth and limit the risk of dependence on a single type of market or customer. A powerful hub According to the ACI Europe “Airport Industry Connectivity 2017” report which assesses the network of connections offered at airports, the connecting platform at Paris-Charles de Gaulle, the primary base of the Air France-KLM Group, is ranked as the 3 rd European hub for global connectivity (number of cities covered), behind Frankfurt and Amsterdam.

1 Note that TAV Airports won the concession for 3 airports in Saudi Arabia (Yandu, Qassim and Hall) on 8 June 2017. 2 See below “International and airport development”.

3 Including Zagreb airport, whose concessionary company is owned at 15% by TAV and 20.8% by Groupe ADP, via its 100% subsidiary, ADP International. 4 Calculation taking into account 100% of TAV Airports traffic for 2017. Please also refer to the paragraph “2017 Groupe ADP traffic by airport, presented in Chapter 6.

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AÉROPORTS DE PARIS  REGISTRATION DOCUMENT 2017

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