ADP_REGISTRATION_DOCUMENT_2017

BUSINESS OVERVIEW 06

DESCRIPTION OF ACTIVITIES BY SEGMENT

Real Estate

2017 250 208

2016

2017/2016

(in millions of euros)

Revenue

263

-4,8%

External revenue Internal revenue

211 52

-1,1%

42

-19,6%

EBITDA

209

149 104

+€60m +€57m

Operating income from ordinary activities

161

There are two complementary categories of real estate assets: ◆ airport real estate includes land and buildings intended for aviation activities outside the terminals or requiring direct access to runways, such as aircraft maintenance hangars, frontline cargo courrier services and industrial buildings (catering, etc.); ◆ diversification real estate, which includes land and buildings that do not have direct access to runways, or for which this access is not essential to the operation of the activity, such as offices, hotels, retail and business premises, logistics premises and warehouses. These real estate activities have been excluded from the regulated scope since 1 January 2011. Groupe ADP provides real estate services to customers from a wide range of sectors including Air France-KLM, FedEx, Unibail-Rodamco, Audi, Accor, La Poste, Bolloré Logistics, Kuehne+Nagel, DHL, Groupe Auchan, Casino, FNAC, Dassault and Servair. The top ten customers represented around 58% of external revenue in 2017. Leases are mainly long term, thus limiting rental risk. At 31 December 2017, over 63% of leases by value had a maturity date of 9 years or more. For leased land, building and long-term leases may have a term of as long as 70 years. For leased buildings, the leases are commercial or civil. The land portfolio dedicated to real estate activity Aéroports de Paris owns its entire land portfolio, which extends over 6,686 hectares, of which 4,601 hectares are reserved for aviation, 775 hectares are areas that cannot be exploited, and 1,310 hectares are dedicated to real estate activities.

Presentation of the activity Non-terminal real estate activity is a strategic development axis and has become a focus for growth for the group with an economic cycle that differs from that of Groupe ADP’s other activities. The strong growth potential, resulting from the Company’s substantial real estate reserves, a density that is nevertheless still low in certain areas, and the medium and long-term reversion potential of land occupied, is an important driver for the creation of value for Groupe ADP. Groupe ADP acts throughout the value chain to value the land: ◆ as both landowner and developer, Groupe ADP prepares the layout and servicing for land that it then makes available to investors or users, who pay rent; ◆ Groupe ADP also acts as a developer and investor, managing real estate projects to meet its own needs and those of companies seeking to establish operations within its airports; ◆ as a property owner, Groupe ADP manages its assets (commercial strategy, remodelling and renovation), its rentals (marketing, tenant relations, rents and charges, regulatory obligations and maintenance and repair management) and offers additional services to tenants (repairs, security and cleaning).

The surface areas available for real estate break down as follows:

Aeronautical

Diversification

Total 1,310

(in hectares)

Surfaces dedicated to real estate

444

866 334 164 368

Land reserves

77 141

411

Land used for ADP buildings Land leased to third parties

305 594

226

Planned development projects are used for projects compatible with the urban planning rules in effect in the municipalities in question (SCOT, CDT, PLU, etc.) and must be included in the airport floor plan. Constructible land reserves make up 411 hectares and are directly available (55%) or consist of land subject to a number of constraints that limit their immediate use. These reserves are made up of land that is home to end-of-life activities and for which the land use may change in the short term (16%), land which has become expensive to development due to technical constraints or which is currently unattractive from the commercial point of view (10%) and land under constraint of aerial or radioelectric easements that limit its use (19%). Other constraints may encumber the use of this available land immediately or in the future: application of the biodiversity law, modification of aviation easements, changes in the Group’s master plan, etc. Constructible land reserves decreased by 12 hectares in 2017 to 411 hectares compared to 423 hectares in 2016, mainly due to the

consumption of several plots for project development, floor area pre- emptions for aeronautical activities partially offset by changes of local planning requirements making certain plots constructible and the constitution of land reserves possible in the Orly Industrial area. Land leased to third parties was located at Paris-Charles de Gaulle, Paris- Orly and Paris-Le Bourget airports as well as at civil airfields. More than 50% of the land leased to third parties is linked to airport activities at Paris-Charles de Gaulle airport, 10% at Paris-Orly airport, and 50% at Paris-Le Bourget and general aviation airfields. In 2017, the assets dedicated to real estate activities were valued at €2,826 million, of which €2,434 million in investment buildings as detailed in Note 6.3.2 of the Group’s 1 consolidated accounts. This valuation includes nearly €392 million in buildings occupied by Groupe ADP for its own use, the assets held by its fully consolidated subsidiaries and assets restated according to IFRS standards under lease-financing contracts.

1 See chapter 20.

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AÉROPORTS DE PARIS  REGISTRATION DOCUMENT 2017