Aéroports de Paris - 2019 Universal registration document

REAL ESTATE ASSETS AND FACILITIES

BUSINESS OVERVIEW

PERSONS RESPONSIBLE FOR THE UNIVERSAL REGISTRATION DOCUMENT AND ANNUAL FINANCIAL REPORT

STATUTORY AUDITORS

RISK AND MANAGEMENT

INFORMATION ON THE COMPANY

ORGANISATION CHART

REVIEW OF THE FINANCIAL POSITION AND INCOME

EQUITY AND CASH FLOWS

INFORMATION CONCERNING TRENDS

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 €4.7 billion, of which €3.2 billion 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 and to compensate the fragmentation and disparity of installations by deploying an initiative to merge terminals. For this, work on the junction between the international Terminal 1 satellites and the Terminal 2B/2D junction continued at Paris-CDG airport in 2019. As regards Paris-Orly, the junction building (called Orly 3) of a total area of 80,000 sq.m. was inaugurated by the Prime Minister on 18 April 2019. Moreover, the main runway at Paris-Orly was entirely renovated in 2019, requiring this runway to close between 28 July to 2 December 2019.

◆ creation of an Operations Department, whose area of responsibility will also cover international operations. In particular, it will be tasked with the coordination of airport managers in France and abroad; ◆ creation of 10 “group” branches each organised around a family of business activities, taking into account systematically different expertise relating to innovation and sustainable development. These branches will be based on a matrix mode of operation with hierarchical as well as functional reporting lines. They will thus contribute to the Group’s development; lastly; ◆ creation of a new coordination body geared to development and performance. The Executive Committees of Groupe ADP and TAV Airports remain unchanged and a new “Development and Performance Committee” is created with 8 members from the two companies. Through ADP International, Groupe ADP has investments in eight airports spread over Europe, the Middle East, Africa, Africa, the Indian Ocean and South America. As at 31 December 2019, TAV Airports, in which Groupe ADP owns 46.12%, directly managed 13 airports worldwide, mainly in Turkey, Europe and the Middle East. On 6 April 2019, commercial flights at Atatürk Airport, managed by TAV Airports, were transferred to the new Istanbul airport. On 26 December 2019, TAV was officially informed by the Turkish Civil Aviation Authority (DHMI) that it would be compensated for the early termination of this concession, which had in theory been due to expire on 2 January 2021 (see section 8.3 - “2019 Highlights” of this Universal Registration Document). Groupe ADP is a global airport group with presence in the major segments of the airport value chain in Paris and abroad. Thanks to this asset, the Group aspires to become an integrated provider of airport services by increasing the competitiveness and appeal of its Parisian base for its customers, by expanding its know-how and developing territories. Equipped with a robust economic model and strong development potential, Groupe ADP is able to take on the changes occurring in global air transport. While the number of worldwide passengers is doubling on average every 15 years, growth is gradually moving from Europe and North America to Asia and emerging countries. In addition, competition is increasing for connecting traffic between airports with the proliferation of hubs, particularly in the Gulf. Competition is also growing between low-cost airlines, which historically operated in short- and medium-haul traffic but have now entered long-haul traffic. The increasingly intense competition among operators is one of the reasons why a number of European airlines ceased operations in 2019, whether they are present in Paris (Aigle Azur, XL Airways) or not (Thomas Cook Airlines). These changes are modifying the traditional models of airline companies and European airports, thus providing opportunities for the group, which intends to confirm its position as a major player in the airport value chain. Given this environment, the competitiveness of airlines is increasingly based on the airport’s assets: its ability to meet their growth and other new Strategy The Connect 2020 strategic plan

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AÉROPORTS DE PARIS ® UNIVERSAL REGISTRATION DOCUMENT 2019

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