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

International and airport development The “International and airport developments” segment consists of the businesses within Aéroports de Paris’ subsidiaries and holdings that operate airport management and engineering activities. Created in 2012

and renamed in 2014, this segment includes ADP International (formerly Aéroports de Paris Management), ADP Ingénierie, and the holdings in Schiphol Group and TAV Airports.

2019 1 2

2018 1 2

2019/2018 1 2

(in million of euros)

Revenue

1,081

941 188 175

+14.9% +40.3% +43.2%

ADP International

264 250

of which AIG

of which ADP Ingénierie

57

58

-1.2% +7.5%

TAV AIRPORTS

746

695

Société de Distribution Aéroportuaire Croatia

13

-

N/A

EBITDA

326

304

+7.1%

Share of profit or loss in associates and joint ventures

48

76

-34.8% -26.5%

Operating income from ordinary activities

164

223

05

1 These data take into account the full consolidation of AIG’s results, since April 2018, of Merchant Aviation since August 2018 and of MZLZ-TRGOVINA D.o.o (Société de Distribution Aéroportuaire Croatia) since April 2019. 2 The revenue and operating expenses of TAV Istanbul for 2018 and 2019 are presented on a separate line in the income statement as “net income from discontinued activities”, in accordance with the IFRS 5. Revenue, EBITDA and consolidated Group operating income thus no longer include activity from Istanbul Ataturk airport in 2018 and 2019. Moreover, the line “net income from discontinued activities” also includes the gain resulting from the Turkish authorities’ notification of the compensation payable to TAV Airports for the early closure of Istanbul Ataturk airport, net of taxes, and the impact of the corresponding derecognition of corresponding assets (i.e. €31 million after elimination of non-controlling interests). (See press release of 26 December 2019).

An ambitious international development strategy A strategic study finalised during 2019 reaffirmed Groupe ADP’s ambition to be a world leader in airport management with 35 to 40 airports managed worldwide and projected traffic of 400 to 450 million passengers by then. This ambition will bring the share of the group’s international activities to around 35-40% of the operating income from ordinary activities by 2025. Lastly, all the group’s international airports aim to achieve an Airport Service Quality (ASQ) rating greater than or equal to 4 in 2025. This medium-term vision on which the group communicated during an Investors’ Day at the beginning of April 2019 does not constitute a target as such, but supplements the Connect 2020 plan, for which the targets are confirmed. This ambition is based on the following five strategic focuses: ◆ offer a unique value proposal based on synergies with the group in terms of expertise and innovation; ◆ capitalise on ADP Ingénierie and the service companies to reinforce value creation; ◆ focus on the identified geographical zones to accelerate the group’s international expansion; ◆ acquire airport groups to accelerate growth; ◆ manage the asset portfolio in terms of risk/returns. New management of international activities: the One Group project The One Group project consists in the restructuring, effective on 1 January 2020, of Groupe ADP aimed at promoting the company’s internationalisation, in order to enhance its industrial and financial performance, and offer its employees significant prospects for career development.

The goal for Groupe ADP is to accelerate its development while ensuring its financial robustness. This strategy is based on an industrial logic and implies better integration of the activities of TAV Airports and Airport International Group within the group to promote operational synergies, optimise resources and generate margins for manoeuvre to continue the development of the company overall. To that end, Groupe ADP has changed its structure to include four components: ◆ the creation of a new Development Department, which will bring together all of the Group’s development teams. This Department will be responsible for all development projects, including non-airport development projects and those of service subsidiaries (Hub One, a digital technology operator for companies, BTA, specialising in food, ATU, specialising in duty-free shops, etc.); ◆ the creation of one General Operations Department, extended to include international. In particular, it will be tasked with the coordination of airport managers in France and internationally; ◆ the creation of 10 “group” branches each organised around a family of business activities, systematically taking into account expertise relating to innovation and sustainable development. The 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 ◆ the 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” has been created with eight members from the two companies. In this context, ADP International continues to exist as a holding company which has equity securities and owns service contracts but is no longer the employer of the development staff or of the management of foreign assets, with the exception of the currently expatriated employees who will continue to be ADP employee until their expatriate contract ends. The employees of ADP International are integrated in ADP SA and strengthen new (such as the Development Department) and existing departments.

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AÉROPORTS DE PARIS ® UNIVERSAL REGISTRATION DOCUMENT 2019

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