ADP_REGISTRATION_DOCUMENT_2017

BUSINESS OVERVIEW 06 OVERVIEW OF THE MARKET

Cargo traffic There is no single international definition of what constitutes air cargo. The International Civil Aviation Organisation (ICAO) defines air cargo as merchandise transported by air for a fee, with the exception of mail, while the International Air Transport Association (IATA) defines cargo as all goods including mail, with the exception of baggage. Groupe ADP adopted the IATA definition. The concept of cargo includes freight and mail. Cargo is a highly complementary business to passenger transport because it allows for the optimum use of aeronautical infrastructure throughout the day, as cargo companies do not have the same scheduling constraints as passenger companies. Cargo is transported both on all-cargo flights and on mixed flights. Cargo is carried in the holds of passenger aircraft therefore contributing to the economic balance of the passenger routes. TAV Airports also operates cargo activities at the Tblissi (Georgia), Monastir and Enfidha (Tunisia), and Medina (Saudi Arabia) airports. Trends in cargo and mail at the Paris-Charles de Gaulle and Paris-Orly airports In 2017, Paris Aéroport estimates that it handled 2.3 million tonnes of cargo (+2.3% compared with 2016) at the Paris–Charles de Gaulle (2.2 million tonnes, up 2.8%) and Paris–Orly (0.1 million tonnes, down 7.2%) airports. In 2017, the trend already seen in previous years toward a greater volume of cargo transported in dual-purpose aircraft than in all-cargo flights continued. A total of 60% of cargo was transported by “passenger” aircraft, and 40% by all-cargo aircraft. This development of the strategy of large air cargo transporters is a direct consequence of the various economic crises. Airlines, looking to reduce their costs, took advantage of the substantial holding capacity in passenger aircraft due to the change of equipment and the high flight frequencies and connections offered by the Paris-Charles de Gaulle hub to transport cargo in the “passenger” baggage hold rather than use cargo aircraft. Cargo strategy Groupe ADP’s strategy for its cargo business is to develop and increase the appeal of its Paris airports in order to win new markets and support cargo operators in the development of their activities. In this context, Groupe ADP’s goal with regard to cargo is for Paris- Charles de Gaulle to become the European leader in the years to come. Development of the cargo business is one of the themes of the CONNECT 2020 strategic plan, which specifically includes the creation of 100,000 sq.m. of additional cargo facilities over the 2016-2020 period, to support our customers’ growth. Groupe ADP’s cargo strategy for the Parisian platforms is based on four axes: Recovering traffic This entails the implementation of a marketing support programme to encourage the development of existing or new cargo routes or the introduction of new all-cargo airlines.

Commitment to better quality of service and a more attractive cargo zone Besides the modernisation works and projects to offer facilities that meet the highest international standards, efforts are also focused on cleanliness, signage and security. A large security project undertaken with all of the operators installed accesses with video surveillance to improve lorry traffic and make the merchandise flows more secure. With regard to real estate, the priority is to develop the active “front line” (zone comprising the warehouses closest to the aircraft, at the border between airside and landside). To do this, the group invested in border cargo warehouses with direct access to the runways to facilitate the loading/unloading/customs clearance operations of all-cargo aircraft. It has also increased the number of advanced cargo storage platforms to take into account the movement of cargo to the holds of passenger aircraft. The challenge is to also offer “tailor-made” solutions to the cargo forwarding agent partners: either in divisible warehouses co-financed by Groupe ADP or, like Bolloré or DHL, in private warehouses, or even by third party investors. Plan the development of the cargo business over the long term In order to attract pharmaceutical flows, with high added value and as true growth drivers for the cargo business, in summer 2016, Groupe ADP, working with IATA, launched an initiative that enables the Paris-Charles de Gaulle cargo community to obtain CEIV Pharma certification; this has become the standard certification in response to increasing demand from the pharmaceutical industry. The first phase of this initiative, officially launched on 27 January 2017 and co-financed by Groupe ADP, includes ten Cargo partners representing the entire cargo chain (road carriers, transport commissioners, airlines, ground handling, runways and shops, etc.). Two partners have already obtained their certification and three others are slated to obtain it in early 2018. This initiative is supported by already certified cargo operators such as Air France Cargo, DHL, Bolloré Logistics and Kuhne et Nagel. Furthermore, Groupe ADP has also launched, along with the cargo community, an airside equipment geolocation system and a quarantined export animal station in addition to the existing import station. Finally, Groupe ADP has invested heavily in rebuilding the interprofessional air cargo association: ACFA (Air Cargo France Association). ACFA was created led by Groupe ADP, representatives of the cargo sector and competent authorities. Successor of the CIF ( Comité Interprofessionnel du Fret — Interprofessional Cargo Committee), but with a broader mandate, it aims to represent the interests of the sector and promote it both in France and internationally, as well as carry out technical projects of mutual interest. It aims notably to increase the competitiveness and visibility of the cargo offering, work on fiscal and healthcare harmonisation, and promote flows with strong added value. To carry out its missions, it has set up working groups for the physical processing of cargo, pharmaceutical products, dematerialisation of cargo and its monitoring, as well as on changes in the cargo business. Groupe ADP assumes the chairmanship of the ACFA for its first year of existence.

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AÉROPORTS DE PARIS  REGISTRATION DOCUMENT 2017