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 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 for 9.5 years, i.e . until December 2019. 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’ commercial strategy is based on three major areas: ◆ marketing positioning “The Ultimate Parisian shopping and dining experience” , implemented via products (centred on three key product families consistently featuring iconic French brands: Beauty, Fashion & Accessories and the Art of Living), the design of retail spaces conceived as windows into Paris life, 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); ◆ creating brand awareness before arrival at the airport, notably in the most promising markets (China, in particular); ◆ a unique business model, with two main types of concessionaires: joint ventures held 50% by Aéroports de Paris and 50% by a specialist in the business in question, and the brands themselves. This business model gives Aéroports de Paris a good level of control over the implementation of its strategy. This strategy has enabled Aéroports de Paris to benefit from consistent growth in revenue per passenger from 2006 to 2015, increasing from €9.8 / / CHANGE IN THE TOTAL AREA DEDICATED TO RETAIL:

to €19.7 at end 2015. After a difficult 2016, marked by a sharp decline in tourism in Paris, the growth in Sales/Pax resumed in 2017, with a slight 0.4% increase, even if it was strongly penalised by a sharp decline in tobacco sales linked to the implementation of plain packaging in France. Luxury items, in particular, experienced extremely sustained growth in 2017. The group has thus built a robust travel retail model for the Paris airports that has met growing competition from the town centre offering and has adapted to an environment that is uncertain in both legislative and economic terms. Under CONNECT 2020 1 , Aéroports de Paris intends to consolidate and continue the development of its retail activities via three strategic priorities: ◆ providing the ultimate Parisian shopping and dining experience by: ◆ standardising the offering within the international terminals through six major projects at Paris-Orly and Paris-Charles de Gaulle between 2016 and 2020. The first 2016 milestones of this major development approach were met including, at Paris-Charles de Gaulle, the start of the first steps in the redesign of Hall K of Terminal 2E and completion of the redesign of the international area of Terminal 1 (an intermediate step prior to the project to link the international terminals), ◆ continuing to enhance the brand portfolio, notably via the three strategic families (Beauty, Fashion & Accessories and the French Art of Living). In 2017, several new brands enhanced our retail (Tiffany & Co, Moncler, Saint Laurent Paris) and restaurant (Yo Sushi!, Bellota bellota, etc.) portfolio. Note that 46 new points of sale opened during 2017. In addition to these openings, many new temporary points of sale were opened to boost retail activity, including both shops and restaurants, ◆ standing out from the competition on service quality; ◆ developing brand awareness before arrival at the airports by targeting frequent flyers and international customers; ◆ continuing to capitalise on the economic model by rolling it out in the catering businesses (through the creation of a fast food joint venture with SSP, EPIGO), and sensibly expanding the field of action of joint ventures outside our platforms.

The implementation of this strategy, combined with the creation of additional retail surfaces and the ongoing improvement of the passenger traffic mix, will allow the Group to achieve revenues per departing passenger of €23 for airside shops on a full-year basis after these infrastructure projects have been delivered at the end of the 2016-2020 e .



(in thousands of sq.m.)

Airside shops

30 24

30 24

of which, shops in International areas of which, shops in Schengen areas

6 6

6 6

Landside shops

Bars and restaurants

22 58




2017 was stable in terms of the floor area of shops with a significant increase in bars and restaurants floor area. On the airside, the development of Hall K of Terminal 2E is offset by the commencement of renovation work on Hall L of Terminal 2E, which will continue until 2020.

1 See the Strategy section in this Chapter.



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