BUSINESS OVERVIEW 06
PRESENTATION OF THE ACTIVITY
Given this environment, the competitiveness of airlines is increasingly based on the airport’s assets: its ability to meet their growth and other new needs, as well as assist them in their efforts to ensure better management of operating costs. For airport managers, this approach means improving infrastructure quality and robustness, providing a suitable fee structure and first-rate quality of service and passenger facilities. CONNECT 2020 is Groupe ADP’s strategic plan for 2016-2020. It was developed to address this changing, high potential environment and to continue to help the Company evolve following its listing on the stock exchange in 2006. The CONNECT 2020 strategic plan is a natural extension of the Economic Regulation Agreement (ERA) signed with the government for 2016-2020, and sets out the objectives for regulated as well as non-regulated activities: retail activities via terminal shops and services, diversification of real estate (hotels, offices, etc.), subsidiaries and international holdings. Having previously focused on developing the capabilities of Paris-Charles de Gaulle and the quality of service of the Parisian airports, the Groupe ADP is now concentrating on developing its potential to meet one goal: to be a leading group in airport design and operations. To this effect, it intends to implement its activities for the 2016-2020 period based on CONNECT 2020’s three main strategic priorities: ◆ optimise, by making the most of the Group’s resources; ◆ attract, by targeting excellence; ◆ expand, by stimulating and sharing sustainable growth. The three priorities, which run right across the Group’s activities, are split into nine commitments which it has made to its stakeholders, thus assuming its role as an integrator to unite all players for the benefit of the aeronautical sector and regional competitiveness, in line with the new challenges of a competitive, open, complex and uncertain world. OPTIMISE: Make the most of the Group’s resources Groupe ADP’s first priority is to consolidate its fundamentals in order to create a solid base favourable to the sustainable growth of its business activities. This optimisation aims to guarantee the operational performance of the airports, strengthen the performance of its companies and improve the group’s financial performance. ENSURE OPERATIONAL PERFORMANCE The ambitious and selective CONNECT 2020 investment programme, in the amount of €4.6 billion, of which €3 billion 1 is allocated to the regulated scope, focuses on the optimisation of facilities and the transformation of infrastructure and equipment to ensure their robustness, productivity, adaptability and quality. The investment plan addresses capacity, security and quality needs and focuses on maintaining assets and ensuring regulatory compliance. It must also help to counter the growing spread and diversity of the facilities thanks to the deployment of a concept consisting of merging terminals as well as consolidating accessibility to, and the competitiveness of, the Paris-Charles de Gaulle hub. STRENGTHEN COMPANY PERFORMANCE Groupe ADP also intends to improve its internal organisation by optimising all its operating and functional methods for more efficiency and responsiveness (streamlining support business lines and functions, pooling operational units and on innovation for tools, management and working methods, etc.).
A milestone was reached in July 2017 with the creation of the Directorate General of Airport Operations, which brings together operational and technical expertise to the service of airport management. The gradual implementation of CDG 2020 and ORY 2020 will continue in 2018 with transformation plans intended to boost operating efficiency, the consistency of operating procedures and the transversality of processes. Finally, two departments will be created within the Purchasing Department: ◆ the Workplace Environment Department that will centralise the range of services available to employees; and ◆ the Logistics Department that will enable the management of end- to-end logistics chain. These ongoing organisational and cost control changes will contribute to achieving the objective of an 8% reduction in operating costs per passenger for the regulated scope between 2015 and 2020 2 . IMPROVE FINANCIAL PERFORMANCE The Group has set itself the goal of increasing its consolidated EBITDA by 30% to 40% over 2014 levels and of achieving Return On Capital Employed (ROCE) for the regulated scope at the level of the Group Weighted Average Cost of Capital (WACC) of 5.4% 2 while guaranteeing robust, high-quality service. The objectives will be met thanks to strict financial discipline, the continued search for savings and a strategy aimed at getting the most out of the retail model and increasing the value of the real estate assets portfolio. ATTRACT: Target excellence Among other things, this strategic priority includes improving the competitiveness of the Paris-Charles de Gaulle hub with a new fee structure, an investment plan to improve hub operations and better quality of service for all passengers. In addition, Groupe ADP pursues its dynamic human resources policy to promote employee development and collective commitment and develops a strong brand strategy to affirm its identity. BECOME THE FIRST CHOICE OF CUSTOMERS For the passenger who takes an intercontinental flight and chooses his “gateway into Europe” airport or his connection point, Paris faces competition from other major airports. In this context, CONNECT 2020 is intended help Groupe ADP towinmarket share through a proactive search for traffic via facilities performance, the appeal of its fee policy and its commitment to its customers. With the Connecting Clients 2020 , plan the Group is committed to raising the quality of its service to that of the best European airports, to providing the best of the Parisian experience through a distinctive retail and services offering and to simplifying and personalising the customer relationship by building on a reinforced digital strategy. At the end of 2017, among the main actions decided for customers, figure Paris Aéroport and Air France-KLM loyalty programmes with a view to expanding the portfolio of benefits offered to the passenger. Furthermore, the major project #BAP – Bienvenue à Paris (Welcome to Paris), which is reworking the welcome extended to passengers throughout their journey through the terminal, was launched in 2017; its deployment is planned from the 2 nd quarter of 2018. Groupe ADP is harvesting the fruits of the efforts put in for many years. In the general Skytrax ranking in 2017, Aéroport de Paris-Charles de Gaulle secured the 32 nd place. In 3 years, Paris-Charles de Gaulle has gradually climbed 63 places in this ranking. It figures in the top 10 best airports of the world in the categories “airports receiving more than 60 million
1 Please also refer to Chapter 5 entitled “Capital Expenditures”. 2 Please also refer to Chapter 13 entitled “Profit forecast”.
AÉROPORTS DE PARIS REGISTRATION DOCUMENT 2017
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