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

Setting of fee levels Procedure for the annual setting of rates

The ERA also provides for an adjustment to this Baseline Pricing Schedule, the Adjusted Pricing Schedule for Fees (GTA), taking into account several factors relating to traffic (TRAF), quality of service (QDS), the major investment schedule (INV1), and levels of current investment, competitiveness of the connecting platform and airport processes, quality of service and sustainable development (INV2) and changes in operating expenses (OPEX). These factors are applied as follows: The TRAF factor is the corrective factor linked to traffic The baseline traffic scenario is the one proposed by Aéroports de Paris at the signing of the 2016-2020 ERA. It is based on the assumption of average passenger traffic growth of 2.5% per year over the 2016-2020 period. The traffic risk is shared between Aéroports de Paris and airlines on the basis of a corrective factor (TRAF). This risk, which is assessed on the basis of the number of passengers, and applies beyond a buffer zone that amounts to annual changes that are 0.5 point higher or lower than the baseline traffic scenario, enters into force for the 2018 pricing period. It is calculated in such a way that, outside the buffer zone, 50% of the excess or 20% of the shortfall from forecast fee revenues is offset, within the limit of an impact of between +0.2 and -0.5 points on the annual fee increase cap, through adjusting the tariffs for these fees. In addition, if air traffic rises more than 102% of the upper buffer limit, Aéroports de Paris can use some of the excess revenue beyond this threshold as a contribution towards investments in capacity or in terminal renovations that were not originally scheduled, or towards bringing such projects forward. On the other hand, if the increase in air traffic is less than 98% of the lower buffer limit, Aéroports de Paris can offset some of the shortfall in airport fee revenues below this threshold through a reduction in annual costs due to the non-completion or postponement of certain investments. The QDS factor is the adjustment factor related to quality of service Over the 2016-2020 period, Aéroports de Paris continues to improve its quality of service by building on the achievements of the past five years, through control and ongoing improvement of its processes and facilities. Two categories of indicators with financial implications have been set up: ◆ “quality standard” indicators corresponding to standard services provided by all airports to airline customers and passengers. The incentive system associated with these indicators is based solely on the concept of minimum level required, penalised where appropriate by a maximum price penalty of -0.04% per indicator. Seven “quality standard” indicators have been selected, five of which are availability

Aéroports de Paris consults the Economic Advisory Committee for Paris-Charles de Gaulle and Paris-Orly airports, on the one hand, and for Paris-Le Bourget airport, on the other, at least four months before the beginning of each pricing period. Made up of representatives of aviation users, professional air transport organisations and Aéroports de Paris, the primary mission of both these economic advisory committees is to provide an opinion on proposals for changes to airport fee rates and on investment programmes. Aéroports de Paris must then notify the fee rates and, if applicable, any discounts on them, to the French Transport Regulatory Authority, the French Transport Ministry and the French Competition, Consumer Affairs and Consumer Protection Authority. Fees subject to approval are published at least two months before the start of the pricing period. They are approved unless this is opposed by the Transport Regulatory Authority (to which the French authority for competition, consumer affairs and consumer protection submits a reasoned opinion), within one month of receipt of the notification. In the event of opposition, Aéroports de Paris has the option, within one month from the notification of opposition from the Transport Regulatory Authority, to submit a new proposal. The regulatory authority then has 21 days to approve this new. The ERA provides for certain mechanisms that allow the following to be taken into account during the course of implementation of the contract period: the creation of new fees, transfers between fee categories, the creation of new services or the inclusion of new costs that were not foreseen at the time the contract was signed. Changes in fee levels DETERMINATION OF THE PRICING SCHEDULES APPLICABLE UNDER THE TERMS OF THE 2016-2020 ERA The 2016-2020 ERA covers five pricing periods, the first from 1 April 2016 to 31 March 2017 and the remaining four starting on 1 April and ending on 31 March of the following year. Pursuant to the 2016-2020 Economic Regulation Agreement, changes in fee levels (n) are limited from one year to the next, within a comparable scope, by a “basic cap rate”, compliance with which is assessed in line with the theoretical revenue corresponding to the application of a pricing schedule (n-1) to a baseline traffic level (n-2). For each pricing period n, the basic cap rate for increases in fees is equal to: ◆ Pricing period: P(n): ◆ “2016” i(2016) +0.00%; ◆ “2017” i(2017) +1.25%; ◆ “2018” i(2018) +1.25%; ◆ “2019” i(2019) +1.25%; ◆ “2020” i(2020) +1.25%. where i(n) represents the percentage change in the consumer price index, excluding tobacco, published by INSEE, calculated as the comparison between the index for August “n-1” and August “n-2”. For the determination of prices for the year n, this cap is then applied, within a comparable scope of provision, to the prices n and to the traffic (and baseline volume) for the year n-2, thus arriving at a Baseline Pricing Schedule.

05

indicators and two are satisfaction indicators: ◆ availability of electro-mechanical equipment, ◆ availability of baggage belts, ◆ availability of aircraft parking stands, ◆ availability of passenger boarding bridges, ◆ availability of 400 Hz power supply, ◆ satisfaction as regards cleanliness, ◆ satisfaction as regards directional information;

◆ “excellence” indicators for which significant improvement is expected and/or for which the level aimed for is a level of excellence compared to other European airports. The incentive system associated with these indicators is based on the concept of minimum level required with penalties where appropriate and a concept of higher level targets

59

AÉROPORTS DE PARIS ® UNIVERSAL REGISTRATION DOCUMENT 2019

Made with FlippingBook Publishing Software