Aéroports de Paris - 2019 Universal registration document
BUSINESS OVERVIEW 05
PRESENTATION OF THE ACTIVITY
Groupe ADP carries out the principal businesses in the airport value chain – financing, designing and operating infrastructure – for a network of 24 airports receiving close to 218 million passengers 1 in 13 countries (in Europe, Asia, Africa and South America). It is among the largest airport groups worldwide thanks, in particular, to its strategic partnership initiated in 2012 with TAV Airports, which manages 13 airports located mainly in Europe and the Middle East and in which it has had a 46.12% stake since 2017. In April 2018, it also took control of Airport International Group (AIG), the concessionary of Queen Alia International Airport in Amman, Jordan. Groupe ADP conducts its business in a competitive environment in which both major hub airports and large regional airports operate. As an airport operator, its role is to optimise the handling of intersecting flows of aircraft, passengers, baggage, cargo activity and aircraft supplies. It offers passengers, airlines, cargo and postal operators and companies operating at the airports, the appropriate infrastructure and facilities according to their needs. Groupe ADP is attentive to its societal responsibility and is the interface with all of its stakeholders: passengers, airlines, tenants of the facilities, French government departments, suppliers, employees, shareholders, investors, media, local elected officials, regions where it operates, etc. Groupe ADP’s business activities are divided into five segments: aviation, retail and services, real estate, international and airport developments and others: ◆ the “aviation activities” segment includes all of the business activities carried out by Aéroports de Paris as the operator of the three main airports in the Paris region: Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget. The fees, investments and quality of service associated with these activities fall within the framework of the Economic Regulation Agreement concluded between the French State and Aéroports de Paris (see below); ◆ The “Retail and services” segment includes all of the retail activities of Aéroports de Paris (notably shops, bars and restaurants, car parks, rentals within terminals), as well as advertising and catering activities. The strategy relating to retail activity in Paris is based mainly on its marketing positioning as “the ultimate Parisian shopping and dining experience”, and a franchise business model. ◆ The “Real estate” segment includes real estate activity outside of the terminals, which is structured into airport real estate and diversified real estate. It has strong growth potential in Paris because of the land
reserves available at the airports. Aéroports de Paris has a number of activities in this area: as a real estate owner and land developer, as a developer and investor and as an asset manager and lease manager. This business area has a varied customer base including airlines and cargo and postal service operators, hotels and the tenants of offices and warehouses; ◆ The “International and airport developments” segment consists of the businesses within Aéroports de Paris’ subsidiaries and holdings that operate airport management and engineering activities: ADP International, ADP Ingénierie, the holdings in Schiphol Group, TAV Airports and AIG (Airport International Group); ◆ The “Other activities” segment covers the activities performed by the Aéroports de Paris subsidiary, Hub One, which operates Telecoms and Mobility services. The Economic Regulation Agreement Aéroports de Paris carries out its activities within the legal framework of decree no. 2005-828 of 20 July 2005 relating to Aéroports de Paris pursuant to law no. 2005-357 of 20 April 2005 related to airports. The Company is subject to specifications that set out its specific public service obligations. These missions fall within the scope of the Economic Regulation Agreement (ERA), in line with articles L.6325-2 of the French Transport Code and R.224-4 of the French Civil Aviation Code. The ERA 2016-2020 was signed with the government authorities on 31 August 2015. Aviation and some non-aviation activities, which relate solely to the group's Parisian activities, such as car parks, airport real estate and industry services revenue comprise the so-called “regulated” scope that is subject to the ERA concluded between the French government and Aéroports de Paris. The 2016-2020 ERA defines a limit on increases in the prices of the main airport and ancillary fees (excluding the fee for PRM assistance 2 ) over the period in question, determines investment commitments (capacity, refurbishment, access, etc.) and sets quality of service targets together with the related financial incentive regime. Prices for non-aviation activities in the regulated scope continue to be set freely in accordance with a market approach. Groupe ADP has published, on 2 April 2019, the document which presents its detailed proposals for the 2021-2025 Economic Regulation Agreement, for the development of Parisian platforms (see Chapter 8.3 – 2019 Highlights).
1 Total traffic is calculated using the following method: traffic at the airports that are fully integrated is recognised at 100%, while the traffic from the other airports is accounted for pro rata to Groupe ADP’s percentage holding. Traffic in TAV Airports’ airports is taken into account at 100% in accordance with TAV Airports’ financial communication practices. 2 People with disabilities and reduced mobility.
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AÉROPORTS DE PARIS ® UNIVERSAL REGISTRATION DOCUMENT 2019
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