Aeroports de Paris · EURONEXT:ADP
Aeroports de Paris — IPO Roadshow (May 2006)
139 slides from Aeroports de Paris's IPO roadshow presentation, May 31, 2006
Slide 1: Initial Public Offering
Initial Public Offering 31 may 2006 1
Slide 2: Table of contents
Table of contents Page 1. Overview: Aéroports de Paris 4 2. Equity story 10 3. Traffic 33 4. Airport services 43 4.1 Aeronautical services 46 4.2 Retail activities 80 4.3 Car parks 90 5. Real estate 94 6. Ground handling and related services 110 7. Other activities 118 8. Regulatory framework 131 2
Slide 3: Speakers
Speakers Executive management Pierre Graff – Chairman and Chief Executive Officer François Rubichon – Deputy Chief Executive Officer Laurent Galzy – Chief Financial Officer Operational management René Brun – Managing Director, Paris–Charles de Gaulle Airport Patrice Hardel – Managing Director, Paris
Slide 4: Overview of Aéroports de Paris
1 Overview of Aéroports de Paris Pierre GRAFF – Chairman and CEO 4 - Présentation du management29/05/2015
Slide 5: One of the world's leading airport services groups
One of the world’s leading airport services groups Europe’s 2nd largest airport Paris-Charles de Gaulle group(1): 78.7 million passengers in 2005 Europe’s 2nd largest airport (number of (+4.4% vs 2004) passengers) Europe’s largest airport for air cargo and 461 airlines mail Europe’s largest
Slide 6: Core activities – 2005
Core activities – 2005 Revenues: €1,915m Operating income: €355m Breakdown of 2005 revenues (1) Breakdown of 2005 operating income (2) (before inter-segment eliminations) (before inter-segment eliminations) Other activities Other activities 9.4% 4% Ground handling Real estate and related services 7%
Slide 7: 2005 results: strong growth
2005 results: strong growth €m 2005 % change Revenues(1) 1,915 +5.7% EBITDA 592 +9.1% EBITDA margin 31% Current operating income 331 +13.8% Net income Group share(2) 180 +24.9% (1) Income from ongoing business (2) Including the impact of the Terminal 2E incident. Excluding T2E, net income in 2004 an
Slide 8: Executive Committee
Executive Committee Pierre GRAFF, Chairman and CEO François RUBICHON, Deputy Chief Executive Officer Laurent GALZY Marc NOYELLE Chief Financial Officer Chief Development Officer René BRUN Patrice HARDEL Managing director, Managing director, Paris-CDG Airport Paris-Orly Airport 8
Slide 9: To be Europe's premier airport services group
Our ambition To be Europe’s premier airport services group in terms of: Efficiency Quality of services Environmental management Financial performance 9
Slide 10: Equity Story
2 Equity Story Pierre GRAFF – Chairman and CEO 10 - Présentation du management29/05/2015
Slide 11: A strategy of well-balanced growth
A strategy of well-balanced growth A market that offers Strategic positioning to capture 1 growth and resilience 2 growth from all types of traffic Strong potential for growth and value creation A favorable and incentivizing 3 regulatory framework 11
Slide 12: A market that offers both growth and resilience
A market that offers both growth and resilience World passenger traffic: World passenger traffic: long-term historical growth 1980-2005 long-term growth forecasts 5.3% (PKT) 4.8% (PKT) 4.0% 4.3% (1) 3.8% (1) 3.8% (1) 3.3% (1) ACI Boeing Airbus 2004 - 2020 2005 - 2024 2004 - 2023 Global passenger Wor
Slide 13: Strategic positioning to capture growth from all types of traffic
Strategic positioning to capture growth from all types of traffic A leading airport services group 1 An exceptionally attractive location 2 Three highly complementary airports 3 Easy access and high transport intermodality 4 World-class aviation infrastructure 5 A diversified client base consisting
Slide 14: A leading airport services group
1. A leading airport services group Europe’s top 10 airports (2005) World’s top 10 airports (2005) Airport Passengers (m) Airport Passengers (m) 1. London, UK (LHR) 67.9 1. Atlanta, Georgia (ATL) 85.9 2. Paris, France (CDG) 53.8 2. Chicago, Illinois (ORD) 76.8 3. Frankfurt, Germany (FRA) 52.2 3. Lon
Slide 15: An exceptionally attractive location
2. An exceptionally attractive location France Paris / Île-de-France Europe’s largest metropolitan area The world’s No.1 tourist destination 9.9 million inhabitants (over 75 million foreign tourists in 2005) The world’s No.1 tourist destination 700,000 Chinese tourists in 2005 (26 million foreign
Slide 16: Three highly complementary airports
3. Three highly complementary airports Airport dedicated to medium to long-haul Business Paris - Charles de airport • 2/3 Origin/Destination traffic Gaulle 1/3 transfer traffic Paris - Le Bourget • Major hub for Air France- The European No.1 in KLM and SkyTeam business aviation • European base of St
Slide 17: Easy access and high transport intermodality
4. Easy access and high transport intermodality Transport intermodality at Paris-CDG TGV high-speed train station • Over 3 million users in 2005, including 75% with train/plane connections • 3% of passenger traffic • Over 60 daily connections to Brussels and the French provinces (Lyon, Lille, Mars
Slide 18: World-class aviation infrastructure
5. World-class aviation infrastructure Runways Terminals Paris-CDG: 3 terminals, 47m passengers (66.5m Paris-CDG: the only European airport with in 2010) 2 pairs of parallel, independent runways Paris-Orly: 2 terminals, 30m passengers Capacity: 108 aircraft movements per hour (120 by 2010) P
Slide 19: A diversified client base in the aviation sector
6. A diversified client base consisting of key players in the aviation sector Air France-KLM Airlines (PKT in millions(1) – 2005) Paris–Charles de Gaulle, worldwide hub of Air France- KLM One of the fastest growing flag carrier airlines American Delta Air France United Northwest Airlines Airline
Slide 20: A solid competitive position
7. A solid competitive position Catchment area Cities within a two-hour flight of Paris (millions of inhabitants living within 200 km of the airport) Berlin Dublin Amsterdam London Frankfurt Brussels Paris Rome Madrid FRA CDG/ AMS LHR MUC VIE ZRH CPH ORY Solid Origin/Destination traffic A unique off
Slide 21: Strategic positioning to capture market share in all types of traffic
Strategic positioning to capture market share in all types of traffic •Densely populated catchment area Number of transfer •Low cannibalization from competing airports passengers, in absolute terms in 2005 (100 = BAA) •Highly attractive tourist region Transfers •Economic powerhouse 100 •Easy access
Slide 22: A favorable and incentivizing regulatory framework
A favorable and incentivizing regulatory framework Law of 20th April 2005 Decrees of 20th July and 8th December 2005 Order of 16th September 2005 Precise definition A promising Full-ownership of of ADP’s regulatory Operating rights all assets public service framework obligations • No time limits • E
Slide 23: A well-defined regulatory framework
A well-defined regulatory framework A promising regulatory framework 5-year contract with the French State 1st contract in force until 2010 Transition toward High visibility over Transparency Economic approach an “enhanced fees single till” • Clear allocation • Inflation + 3.25% • Return on capi
Slide 24: Strong potential for growth and value creation
Strong potential for growth and value creation Surface available for future growth 1 Adaptation of capacity in line with traffic growth 2 Growth opportunities for retail activities 3 Medium-term potential of real estate assets 4 Potential to improve financial performance 5 24
Slide 25: Surface available for future growth
1. Surface available for future growth Land reserves Unique physical capacity in Europe • 6,686(1) ha, including 4,977 ha 2,400 ha / 36% exclusively dedicated to airport-related Schiphol activities of the total surface area of ADP 1,918 ha / 29% Frankfurt of the total surface area of ADP CDG Orly Le
Slide 26: Adaptation of terminal capacity in line with traffic growth
2. Adaptation of terminal capacity in line with traffic growth 2006 - 2010 Beyond 2010 Opening and/or expansion of Modular expansion at lower cost terminals: S3, CDG 2E, CDG 1, T2G Land reserves already available Available runway capacity €2.7bn investment Phased opening of mid-sized Increas
Slide 27: Growth opportunities in retail activities
3. Growth opportunities in retail activities Extension and renovation of retail areas (m²) Improve shopping experience in related areas Optimize pricing perception and expand retail offer 2004 2010 2004 2010 Improve management of Retail, bars and passenger flows Duty-free shops restaurants Low inves
Slide 28: Growth opportunities in retail activities
3. Growth opportunities in retail activities More parking spaces 2006 2010 Number of car parks enlarged to keep pace with growth in passenger traffic 28
Slide 29: Medium-term potential of real estate assets
4. Medium-term potential of real estate assets Land reserves Potential to create value in the medium to long term Buildings rented Land rented Total surface area : Real-estate activities: Developed land Available land reserves 6 686 ha 1 247 ha 878 ha 369 ha Diversification real estate will be remov
Slide 30: Medium-term potential of real estate assets
Medium-term potential of real estate assets Exceptional land reserves for urban development just outside Paris Presence on airport platforms offers attractive and Our positioning competitive advantages in real estate Landscaping and urbanization of properties Development of and investment in airport
Slide 31: Potential to improve financial performance
5. Potential to improve financial performance Improvements in financial Historical productivity gains performance Productivity gains – m pax per employee Stabilization and redeployment of staff. Productivity target: +15% over the next 5 years (based on millions of passengers per employee) 12%(1) bas
Slide 32: A clear strategy focused on growth
1 2 A clear strategy focused on growth 3 1 2 3 A market combining Strategically positioned A favorable and incentivizing growth and resilience to capture growth from all regulatory framework types of air traffic Strong potential for growth and value creation Airport services Commercial activities Re
Slide 33: Air traffic
3 Air traffic François Rubichon – Deputy CEO 33 - Présentation du management29/05/2015
Slide 34: Traffic analysis
Traffic analysis General passenger traffic trends 1 ADP traffic: main trends 2 Future traffic growth 3 34
Slide 35: An industry with strong growth and resilience to downturn
An industry with strong growth and resilience to downturn Since 1980, air passenger traffic has risen sharply… …and shown strong resilience to external shocks World passenger traffic Weekly changes in air traffic in Paris +4% CAGR since 1980 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% Units
Slide 36: Long-term consensus: air traffic growth slightly below 4%
Long-term consensus: air traffic growth slightly below 4% Average annual Source Scope Period growth Passenger Forecast: +5.6%(PKT)(1) International trafic 2005-2009 2005-2009 (issued Oct. 2005) Global Market Forecast: + 5.3% (PKT)(1) World traffic 2004-2023 2004-2023 Current Market Outlook: + 4.8% (
Slide 37: International traffic will drive future growth
International traffic will drive future growth Average annual growth of international passenger traffic 2005-2009: +5.6% +5.8% North Europe Asia- +5.3% +5.9% America +5.1% Pacific +4.6% +5.4% +5.7% +6.6% +6.7% South Middle Africa America East Source : IATA - Passenger Forecasts 2005-2009 (PKT) 37
Slide 38: ADP passenger traffic: strong and solid growth trends
ADP passenger traffic: strong and solid growth trends +3.6% CAGR 1995-2005(1) 2004 growth 2005 growth (m passengers) 78.7 Fraport Fraport 73.6 75.3 69.0 71.0 71.5 70.7 63.6 59.1 60.3 55.0 BAA(2) BAA(2) Schiphol Schiphol ADP passenger traffic growth has been particularly robust in recent years (1) In
Slide 39: ADP cargo traffic: buoyant growth trends
ADP cargo traffic: buoyant growth trends +5.5% CAGR 1995-2005(1) 2004 growth 2005 growth (m tons of cargo and mail) BAA(2) 2.1 BAA(2) 2.0 1.8 1.8 1.7 1.7 1.5 Schiphol 1.2 1.2 1.3 1.3 Schiphol Fraport Fraport Dynamic growth driven by the air cargo hubs of Air France-KLM Cargo, FedEx and Europe Airpos
Slide 40: Solid and well-balanced traffic profile
Solid and well-balanced traffic profile O&D and transfer traffic (excluding transit) High exposure to international traffic transfer International National (France) 24.6% (excl. Europe & French overseas (19.3m passengers) and French territories overseas 26.2% territories) 34.1% O&D 75.4% Europe (59m
Slide 41: International traffic - ADP's growth driver
International traffic - ADP’s growth driver Traffic growth by destination: 2005/2004 Europe Africa 39.7 % +4.2 % +9.6 % French overseas 10.4 % Middle East territories (4.4) % +11.1 % 4% 3.9 % Asia Pacific National (France) 6.4 % +0.3 % 3.2 % +5.1 % 22.2 % 10.2 % South America Traffic growth 05/04 +1
Slide 42: Traffic assumptions: 2006-2010
Traffic assumptions: 2006-2010 Central assumption of CRE (economic regulation agreement) 2006-2010 CAGR of +3.75% Main drivers of traffic growth Intercontinental traffic (mainly North and South America, Asia) Eastern and Southern European traffic Transfer traffic Mature segments National traffic Nor
Slide 43: Airport services
4 Airport services François Rubichon – Deputy CEO 43 - Présentation du management29/05/2015
Slide 44: Overview of airport services
Overview of airport services 2005 revenues:(1) €1,601m 2005 operating income:(2) from ordinary activities: €377.5m Other activities Other activities 9.4% 4% Real estate 7.6% Airport services Real estate 75% 7% Airport services 89% Ground handling and related services 7.9% Assets at 31 December 2005:
Slide 45: Description of services
Description of services Services provided by Aéroports de Paris Revenues: €1.6bn (1) Passenger Use of infrastructure services 20% Airline services (runways, terminals) and facilities Car parks (baggage sorting equipment, check- and access in counters, etc..) 8% Retail revenues 12% Supply of energ
Slide 46: 4.1 Aeronautical services
4.1 Aeronautical services François Rubichon – Deputy CEO 46 - Présentation du management29/05/2015
Slide 47: Airline services
Airline services Description of services 1 Strategy and investment plan 2 Presentation of the main ADP airports 3 47
Slide 48: Airline services
Airline services Airport fees Revenues: €717m (1) Fees received per passenger or aircraft movement (maximum take-off weight, movement) Aircraft Fees may increase by a maximum of 3.25% parking fee + inflation each year from 2006 to 2010, Landing with an increase of 5% in 2006 Ancillary fee fees 10% F
Slide 49: Professional services
Professional services Industrial services: €60.6m Air Heating Electricity Water Waste conditioning Produced and distributed 502 GWh 3.2 million m3 56,500 tons 143 GWh 390 GWh in 2005 distributed treated for own use or in 2005 in 2005 in 2005 for third parties: Provider of most Open to Electricity su
Slide 50: Professional services
Professional services Leasing revenues: €61.7m Revenues from leasing space, offices and lounges in terminals, and storage areas, aviation-related buildings and other space in restricted areas Other revenues: €121m BAAC(1) payment from the French civil aviation budget Services provided to the Fre
Slide 51: Security services
Security services Airport tax: €309m Security tasks assigned to Aéroports de Paris: Inspection and screening of passengers and carry-on baggage Access controls to restricted areas Security procedures for use of facilities (by airlines, ground handling companies) Security infrastructure in te
Slide 52: Airport services: strategy
Airport services: strategy Targets Airport facilities Match air traffic growth Enhance the attractiveness of the hub system Optimize the operational and commercial performance of existing facilities Quality of service Mobilize the entire group around a service-oriented culture Make service
Slide 53: Airport services: investment program
Airport services: investment program Airport investments €2.4bn (1) Security and FEST (2) Other 17% capacity 47% 63 49 54 61 153 31 36 143 54 139 46 55 27 44 45 15 15 51 145 114 132 377 21 311 42 36 251 148 181 149 36% Current operations/restructuring 2006 2007 2008 2009 2010 Capacity Restructuring
Slide 54: Aéroports de Paris: fostering a service-oriented culture
Aéroports de Paris: fostering a service-oriented culture Mobilize the entire group around a service-oriented culture Group reorganized into operating units with specific performance and quality targets Incentives for management linked to quality criteria Launch of group-wide quality campaigns
Slide 55: Improve financial performance
Improve financial performance Stabilize the number of employees at Aéroports de Paris SA and transfer workers toward new infrastructure Centralize and streamline purchasing Offer subcontractors performance incentives Control energy consumption Offer performance-based incentives for meeting quality t
Slide 56: Paris–Charles de Gaulle
Paris–Charles de Gaulle René Brun – Managing Director Paris-Charles de Gaulle Airport 56 - Présentation du management29/05/2015
Slide 57: ADP's main airports: Paris–CDG
ADP’s main airports: Paris–CDG Buildings Runways Access points Positioning: • 2/3 O&D traffic, 1/3 transfer traffic Runways: Two 2700m landing strips • Main hub for Air France-KLM Two 4200m take-off strips • 53.8m passengers in 2005 • 513,700 aircraft movements 108 mvts/ hr (future capacity: 120 mvt
Slide 58: Paris–Charles de Gaulle airport: positioning
Paris–Charles de Gaulle airport: positioning Passenger traffic growth: 2003-2005 (pax m) Traffic by destination Africa 8.9% National (France) 8.6% North America 14.7% French overseas territories 0.8% South America 3.9% Asia Pacific 9.4% Europe 48.9% 2003 2004 2005 Middle East 4.9% O/D vs. transfer t
Slide 59: A diversified client base with major airlines
A diversified client base with major airlines Passenger traffic: Paris-CDG airport by operator Top 5 leading clients at Paris-CDG in 2005 (number of Other airlines passengers) 23.1% 1. Air France – KLM 2. Lufthansa 3. British Airways oneworld 4. Alitalia 5.7% 5. easyJet Star Alliance SkyTeam 62.5% 8
Slide 60: Air cargo companies: the world leaders
Air cargo companies: the world leaders Top 5 air cargo clients at Cargo and mail traffic in 2005 (2m tons) Paris-CDG in 2005 Other companies 0.6m tons in 2005 1. Air France – KLM 33% 2. FedEx 3. Europe Airpost 4. Cathay Pacific 67% 5. Delta Airlines Ten largest companies 1.4 m tons in 2005 About 50%
Slide 61: Environmental framework
Environmental framework • Number of aircraft movements limited between Curfew and 0:00am and 5:29am Timeslots • No restrictions • Ceiling on noise pollution Noise • Landing fees and noise pollution tax proportional to the noise level generated by aircraft • ISO 14 001 environmental certification (20
Slide 62: Paris-CDG: a three-pronged strategy
Paris-CDG: a three-pronged strategy Future traffic will be captured by limited number of powerful hubs Conviction Long-haul traffic will continue to post strongest growth, and will become the main type of traffic Target Consolidate Paris-CDG’s leading position in long-haul international trafic
Slide 63: New airport capacity: 2006-2010
New airport capacity: 2006-2010 Projects Satellite 3 Reopening of CDG 2E Regional CDG 1 and F2 Schengen terminal S4 Begin fin rénovation construction 2007 2008 2009/2010 Annual +8.5 +5.4 +3. +2.5 increase in 0 capacity (m passengers) Total +19.4m pax 63
Slide 64: A flexible approach to increasing airport capacity
A flexible approach to increasing airport capacity Millions CDG 2E gates pax CDG 1 70 renovations 66.5m pax T2G 65 60 CDG 2E 55 50 S3 45 CDG 2E Nominal capacity 40 2003 2004 2005 2006 2007 2008 2009 2010 Runways have already been built: a major competitive advantage for ADP 64
Slide 65: Long-term prospects: renovation and expansion
Long-term prospects: renovation and expansion horizon (2025) CDG1 Renovation TGV Expansion T4 (2016-2020: 25m pax)* * * * S4 CDG2 (2012: T2G 7.2m pax)* * Estimated capacity 4 runways / 3,257 ha Paris-CDG has a greater surface area than London Heathrow + Frankfurt combined 65
Slide 66: Reinforce hub efficiency and service quality
Reinforce hub efficiency and service quality TBE CDG VAL Satellite 3 Regional terminal Renovation T2G CDG1 2006 2007 2008 Automatic baggage Free light-rail shuttle Increase in number Handling of Schengen Better quality handling system every 4 minutes, of terminal-side regional flights, service, for
Slide 67: Reinforce hub efficiency and service quality
Reinforce hub efficiency and service quality Strong Service Level Agreements (Star Alliance, oneworld) commitments CRE specifies 10 quality indicators for services, 7 of which are airline services Alliances CDG 1 serves Star Alliance members under the CDG 2 A,B and D serve oneworld members sam
Slide 68: Improve financial performance
Improve financial performance Retail revenues Car parks Increase revenues Terminal real estate Transfer staff towards new infrastructure and activities in contact with the public Cost control Partnership policy with sub-contractors Add performance incentives to contracts Control energy consumption
Slide 69: Paris–Orly
Paris–Orly Patrice Hardel – Managing Director Paris-Orly Airport 69 - Présentation du management29/05/2015
Slide 70: ADP's main airports: Paris-Orly
ADP’s main airports: Paris-Orly Buildings Runways Access points Positioning: Runways (m) Strip 3 (3,300 x 45) •An airport close to Paris Strip 4 (3,600 x 45) specializing in point-to-point flights •24.9m pax in 2005 Strip 2 (2,400 x 45) •222,900 aircraft movements in 2005 Runway capacity: 250,000 sl
Slide 71: Paris–Orly airport: close to Paris and dedicated to O/D
Paris–Orly airport: close to Paris and dedicated to O/D Passenger traffic growth 2003-2005 Traffic by destination (m passengers) North America: Africa: 13.7 % 0.6 % South America: 1.6 % National (France): 51.8 % Middle East: 2003 2004 2005 1.6 % Europe: 19.8 % French overseas territories: 10.8 % 71
Slide 72: Air France-KLM airport and strong presence of alternative carriers
Air France-KLM airport and strong presence of alternative couriers Top 10 airlines at Traffic by type of carrier Paris-Orly (passengers in 2005) 1. Air France – Other airlines: 32.5 KLM % 2. easyJet 3. Corsair 4. Iberia 5. Royal Air Maroc 6. TAP Air Portugal 7. Aigle Azur 8. Air Algeria 9. Tunis Air
Slide 73: Environmental framework
Environmental framework Location Paris-Orly airport is surrounded by urban areas Curfew 11:30 pm to 6:00 am Slots Limited to 250,000 aircraft movements per year 73
Slide 74: Paris–Orly airport: our strategic vision
Paris–Orly airport: our strategic vision Paris-Orly has several major advantages: Conviction its location near Paris, easy access and a simple layout that is easy for passengers and economical for airlines Maximize the development of Paris-Orly Target within its specific regulatory operating framewo
Slide 75: Quality of passenger services and improvements
Quality of passenger services: improve passenger flows, the “shopping experience” and service on offer International Hall 2 Orly Ouest Renovation passenger flows Renovation runway 4 Orly Sud of P0 car park 2006 2007 2008 Improve the Accommodate Completely separate flows Improve the quality of servic
Slide 76: Improve financial performance
Improve financial performance Enhance offer of services Extend retail areas Online marketing of car parks and business center services Productivity Reallocation of personnel over the period 2005-2010 Optimize security infrastructure Integrate screening and inspection equipment in the baggage
Slide 77: Paris – Le Bourget
Paris – Le Bourget Patrice Hardel – Managing Director 77 - Présentation du management29/05/2015
Slide 78: ADP's main airports: Paris-Le Bourget
ADP’s main airports: Paris-Le Bourget Positioning: •Business aviation airport •Over 59,000 aircraft and helicopter movements in 2005 Runways (meters) •Strip 1 (3,000) •Strip 2 (2,665) •Strip 3 (1,845) Total surface area 553 ha Buildings Revenues €27.9m Runways Access points 78
Slide 79: Paris-Le Bourget: our strategic vision
Paris-Le Bourget: our strategic vision Conviction Business aviation segment is a fast-growing market Target Remain European leader in business aviation Construction of the first business aviation terminal (inauguration in May 2006) Strategy Thereafter, development of a prestigious commercial complex
Slide 80: 4.2 Retail activities
4.2 Retail activities Pascale Cartier – Director, Retailing 80 - Présentation du management29/05/2015
Slide 81: Retail activities: Description
Retail activties: Description Retail concessions are divided into 4 categories: Revenues from concessions: €196.9m(1) Core business: alcohol, tobacco, perfume, cosmetics and gourmet food International Advertising 8% and Schengen Luxury goods (fashion, leather goods) Car rentals 6% retail areas
Slide 82: Retail activities: business model
Retail activities: business model Concession-based model Commissions: sales commissions vary widely - from 2% to over 40% - depending on the product category The guaranteed minimum fee is generally expressed as an amount per passenger Maturity of the concessions spread over time Average concession p
Slide 83: Analysis of retail areas
Analysis of retail areas Total retail surface area: 37,172 m2 at year-end 2004(1) 288 sales outlets (shops, bars and restaurants) at year-end 2005 Total retail surface area:(1) 37,172 m2 Schengen zone Bars & Restaurants 54% 15% International zone 62% Shops 46% Public retail areas (before checkpoints
Slide 84: Retail activities: strategy
Retail activities: strategy Extend and renovate retail areas 1 Improve the shopping experience in all retail areas 2 Optimize pricing perception and expand the retail offering 3 Improve passenger flow management 4 84
Slide 85: Extend and refurbish retail areas
Extend and refurbish retail areas Strong correlation between revenues/pax and surface area/pax Over 3,000 m2 of expanded retail space located in Satellite 3 Most of the increase in retail space will be completed in 2007/2008 Extending retail areas requires very small investments Extension of retail
Slide 86: Selection criteria for retail areas
Selection criteria for retail areas after checkpoints : Revenue revenues, image and services Perfume-cosmetics Alcohol, tobacco Fashion-leather goods, accessories Gourmet food Jewelry Newsstands Photo-Hifi Children Travel National museums Tableware Image 86
Slide 87: Extend and reconfigure retail areas: Example CDG 1
Extend and reconfigure retail areas Example: CDG 1 Current situation: Future: poor passenger flows 100% of flow goes through retail areas Passenger flow 87
Slide 88: Other strategic guidelines for retail activities
Other strategic guidelines for retail activities Improve the shopping experience Remodel retail areas (lighting, building materials, etc.) Clearly differentiate the retail offer in the Schengen zone from those in other terminals. Expand product offer Improve the to include more accessible brands
Slide 89: Enhance the shopping experience in retail areas
Enhance the shopping experience in retail areas Current Future 89
Slide 90: 4.3 Car parks
4.3 Car parks René Brun – Managing Director Paris-Charles de Gaulle Airport 90 - Présentation du management29/05/2015
Slide 91: Car parks: description
Car parks: description Parking spaces by airport Paris- Orly 42% Car park revenues: €135m in 2005, up 12.6% from 2004 Paris- CDG At Paris–CDG, 26% of departing passengers 58% from the Greater Paris region arrive by car Nearly 48,000 parking places: Car park revenues by airport ¾ for passengers Par
Slide 92: Development of car parks
Development of car parks Paris–Orly: renovation of existing car Paris–CDG: expansion of car park capacity (circa 5,100 parks additional spaces between 2006 and 2010)(1) 750 spaces for CDG T2G Orly Sud P1 car park: 1,500 spaces were 2,600 spaces by adding a parking deck to the PX car renovated
Slide 93: Car parks: strategy
Car parks: strategy Fee policy: Paris-Charles de Gaull e : Short-term parking: develop a more profitable “kiss and ride” offer Day parking (up to 3 days), mainly for business travelers: customer loyalty program, enhanced security, development of services (credit card payment on exit, carwash, on
Slide 94: Real Estate
5 Real Estate Jila Darabiha – Director, Real Estate 94 - Présentation du management29/05/2015
Slide 95: Real estate
Real estate Description 1 Strategy 2 95
Slide 96: Overview of ADP's real estate holdings
1. Overview of ADP’s real estate holdings 2005 revenues:(1) €162m 2005 operating income(2) from ordinary activities: €34.4m Other activities Airport Airport 9.4% services services 75% 89% Ground handling and related services 7.9% Other activities 4% Real estate Real estate 7.6% 7% Assets at 31 Decem
Slide 97: Real estate business complements airport services
1. Real estate business complements airport services Full ownership of its real estate: If the French government decides to close one of the ADP airports, Aéroports de Paris must pay back 70% of the capital gain to the State The “cahier des charges” document indicates that The Group is free to dis
Slide 98: Description of ADP's non-aeronautical real estate assets
1. Description of ADP’s non-aeronautical real estate assets Total revenues: €162m Three core business lines: Rental charges Site planning Property inter- (7.9%) development/investment segment Property and asset management lease revenues Three types of real-estate 24.4% External in which ADP is i
Slide 99: A major real estate portfolio with strong development potential
1. A major real estate portfolio with strong development potential in the non-aeronautical segment Land that cannot be Land available for development: 1,247 ha developed 462 ha 7% 19% Developed land Available land 878 ha (13%) reserves 369 ha 74% • Orly: 157 ha • CDG: 154 ha • Le Bourget: 41 ha • AA
Slide 100: Breakdown of developed land (878ha)
1. Breakdown of developed land (878ha) Land leased to 3rd parties (541 ha) Buildings leased by ADP (337 ha) REVENUES: €58m REVENUES: €52m* Consumer/ real estate 1,138,426 m2 net surface area (SHON) facilitates Aviation support facilities 92 ha (hangars, cargo platforms) 232 ha 966,409 m2 marketable
Slide 101: Real estate: our strategic vision
2. Real estate: our strategic vision Attraction and competitive advantages of locations in the airports Strengths Major land reserves available for development in attractive areas of the Greater Paris region Exceptional transportation services and public infrastructure An additional source of medium
Slide 102: Development of land reserves (369 ha)
2. Development of land reserves (369 ha): circa 60 ha to be developed by 2010 Land reserves available Developments Net surface area for real estate (SHON) of buildings development. to be delivered by 2010 102
Slide 103: How we plan to develop our land reserves
2. How we plan to develop our land reserves Projects to be completed by 2010 Paris-CDG: Surface area by segment in 2010 (m2) Paris-CDG: Aéroports de Paris plans to develop Consumer real estate 5% real estate related to airport services: priority to cargo Aviation support facilities and office buil
Slide 104: Paris-Charles de Gaulle: priority real-estate development projects
Paris-Charles de Gaulle: Priority real-estate development projects AF Fedex AF A380 Mail Crew AF Hub Extension Hangars Services Servair ACNA maintenance Ouest center Phase 1 Phase 1 center ADP cargo platform Completed Signed In progress 104
Slide 105: Paris-Orly: priority real-estate development projects
Paris - ORLY : Prority real-estate development projects La Poste Air France ADP Mail sorting Engine center Cargo platform center AFI Cœur d’Orly Eole plant STAF parking Completed Signed 105
Slide 106: Le Bourget: priority real estate development projects
Le Bourget: priority real estate development projects Flying group complex FBO UNIVERSAL aviation Business aviation terminal Completed Signed In progress 106
Slide 107: Summary of real estate developments in progress
2. Summary of real estate developments in progress Projet ADP ADP Client Completion date Site planning Construction Aviation zone extension FedEx End 2006 A 380 maintenance hangar Air France - KLM 2006 Crew center Air France - KLM 2006 CDG Hub maintenance center Air France - KLM 2007 Aircraft
Slide 108: Diversification real estate outside regulated scope post 2010
2. Diversification real estate outside regulated scope post 2010 Land leased 2005 revenues: €16m (28% of to third parties lease revenues) Existing assets Buildings leased by Aéroport 2005 revenues: €14m (27% of de Paris lease revenue) Future developments About 40% of Aéroports de Paris’ real estate
Slide 109: How we plan to finance this development
2. How we plan to finance this development Funds allocated to real estate Real estate development development program marketable by 2010 by ADP €164m Amount of investment: €460m Type of investments Source of invested funds Preparation of post- 2010 developments Outside of Diversification Partners Aé
Slide 110: Ground handling and related services
Ground handling 6 and related services Francis Gisselmann – Director, Ground Handling 110 - Présentation du management29/05/2015
Slide 111: Overview of ADP ground handling services
Overview of ADP ground handling services 2005 revenues:(1) €168m 2005 operating income(2) from ordinary activity: -€10.9m Other activities Airport Airport 9.4% services services 75% 89% Ground handling Other activities 7.9% 4% Real estate Real estate 7.6% 7% Assets at 31 December 2005:(3) €52m Emplo
Slide 112: What are ground handling services?
What are ground handling services? Ground handling consists of providing passengers and aircraft with an array of services as defined in European Directive 96/67/EC of 15 October 1996 This activity has been open to competition since European Directive EC/96/97 11 ground-handling service segments 4 r
Slide 113: General operating principles
General operating principles To ensure ground handling services, an airline has two options: provide the services itself, using its own staff or make use of an external service provider: Any service provider can be chosen for services in the “public” zone Only authorized service providers can be
Slide 114: Aéroports de Paris: business model
Aéroports de Paris: business model Ground handling service providers must hold a license Aéroports de Paris has its own license and subcontracts part of its business to Alyzia, a 100%-owned subsidiary Aéroports de Paris can provide all ground handling services with the exception of three specialized
Slide 115: Breakdown of 2005 revenues
Breakdown of 2005 revenues Revenues:(1) €168m Top 10 clients inter-segment services(2) 1 - Air Algerie 2 - Iberia 3 - Corsair 24% 76% 4 - Tunis Air 5 - Continental Airlines 6 - American Airlines Ground handling services 7 - El Al 8 - Fly DBA 4.5 million passengers served per year 9 - Saudi Arabian 4
Slide 116: Competitive positioning
Competitive positioning Our strengths Overall market 1. Experience – knowledge of our airports 1 Air France 65% Recognition – the incumbent player 22. Open market 35% 3. Wide range of services offered, size 3 Accessible market: €400m Europe Servisair/ Handling 4. Grasp of new technologies Globe Grou
Slide 117: Strategic vision
Strategic vision Market Expect permanent pressure on prices and margins environment Orly Sud: potential arrival of a new operator in late 2006 A new directive, currently being debated Targets Stabilize revenues over the period 2005-2008 Return to breakeven in 2008 Focus on the most profitable contra
Slide 118: Other activities
7 Other activities Dominique Pannier – Director: Subsidiaries & Investments 118 - Présentation du management29/05/2015
Slide 119: Other activities
Other activities Overview 1 Sociéte de Distribution Aéroportuaire 2 Hub telecom 3 ADP.i 4 ADP Management 5 119
Slide 120: Overview of Aéroports de Paris's other activities
1. Overview of Aéroports de Paris’s other activities 2005 revenues (1): €200m 2005 operating profit(2) from ordinaru activities: €16m Other activities Airport Other activities Airport 9.4% services 4% services 75% 89% Ground handling & related services 7.9% Real estate Real estate 7% 7.6% Assets as
Slide 121: Overview of other activities
1. Overview of other activities Company Description Contribution to revenues: €200m(1) ADP Management Sociéte de 4% Distribution Sociéte de • Shops and retail in airport Aéroportuaire Distribution • 49% ADP/ 51% Aelia ADP.i 43% Aéroportuaire(2) 15% • Telecoms operator Hub télécom Hub télécom special
Slide 122: Role of the Other activities within the Group's strategy
1. Role of the Other activities within the Group’s strategy Value Aéroports de Paris’ expertise in its niche businesses Airport engineering (ADP.i) Telecoms services for airports/complex sites (Hub télécom) International airport management (ADP-Management, SETA) Expanding of Aéroports de Paris
Slide 123: Société de Distribution Aéroportuaire (SDA)
2. Société de Distribution Aéroportuaire ("SDA") Description Statutory key figures Partnership with airport retail specialist Aelia, a subsidiary of Hachette Distribution Services (49%/51% (€ thousands) 2004 2005 Aéroports de Paris/Aelia), created in 2003 Proportionally consolidated Revenues 151,1
Slide 124: Hub télécom
3. Hub télécom Description Statutory key figures 100% subsidiary of Aéroports de Paris (€ 2004 2005 Specialist operator of telecoms services and thousands) networks on airport platforms Revenues 66,785 71,322 Extension to other sites with high levels of business users such as o/w external 39,883 39,
Slide 125: Hub télécom: a niche strategy in a buoyant market
3. Hub télécom A niche strategy in a buoyant market Well-known specialist in telecoms services for airport services companies: Airlines, ground handling companies, cargo companies and public services Managers of airports in France (Aéroports de Paris, Lyon, Montpellier etc.) Development of speci
Slide 126: AdP.i
4. AdP.i Description Statutory key figures 100% subsidiary of Aéroports de Paris (€ thousands) 2004 2005 Provides building design, project management, Revenues 27,161 27,460 architecture and engineering for airports and infrastructures, particularly abroad o/w external 26,107 26,840 References: Oper
Slide 127: AdP.i strategy
4. AdP.i strategy A strategy based on: Growth/cost balance Capitalizing on its expertise in the Persian Gulf while also Strategy diversifying its exposure to other regions Diversification outside air terminals/buildings (baggage handling systems etc.) 127
Slide 128: ADP Management
5. ADP Management Description Statutory key figures 100% subsidiary of Aéroports de Paris Extracting maximum value from Aéroports de Paris’s international expertise and know-how in (€ thousands) 2004 2005 operating airports Revenues 2,698 7,867 Acquisition of stakes in airports coupled with manageme
Slide 129: A strong international presence
5. A strong international presence Aéroports de Paris currently has interests in 25 airports worldwide Strategic partnerships in Mexico, Liege and Beijing Liege airport Conakry airport Algiers airport • 375,000 tons of cargo Beijing airport • 0.2m passengers • 4m passengers • 41m passengers • Operat
Slide 130: ADP Management's strategy
5. ADP Management’s strategy Internationally renowned expertise and know-how Strengths Track record (Beijing) Pragmatic management of existing portfolio Limited financial commitments Maintaining future growth drivers through controlled investment, based on four criteria: Strategy Acquiring minorit
Slide 131: Regulated framework
8 Regulated framework Laurent Galzy – Chief Financial Officer 131 - Présentation du management29/05/2015
Slide 132: Regulatory framework meeting the highest European standards
Regulatory framework meeting the highest European standards Five-year contract offering visibility and stability 1 Increase in airport fees reflects a fair reward for capital invested given the cost of capital 2 Regulation contract combined with increase in airport fees, investment program and meeti
Slide 133: First contract under the single till regulation
First contract under the “single till” regulation Airport services Commercial activities Development of airport fees under Other service fees Free or contractual CRE contract fees Landing, parking, passenger and Leasing of space in air Retail fuel fees terminals Parking Runway lighting, baggage hand
Slide 134: Incentive-driven, flexible and balanced fee schedule
Incentive-driven, flexible and balanced fee schedule Capital expenditure Service quality - Projected investment of €2.5bn (2) Aéroports de Paris’ commitments: - Commitments to open up a number of - To attain certain service quality standards in facilities by set dates areas in which it has predomina
Slide 135: Structure of the regulatory contract
Structure of the regulatory contract Capital expenditure Fees - Projected capex of €2.5bn (2) Possibility of increasing airport fees: - Commitments to open up a Adjustments inflation + 3.25% per charging period (1) depending on the number of facilities by set dates level of investment No restriction
Slide 136: Structure of the regulatory contract
Structure of the regulatory contract Service quality Fees Aéroports de Paris’ commitment: Possibility of increasing airport fees: To meet certain service quality standards Bonus/penalty inflation + 3.25% per charging period (1) in areas in which it has predominant system responsibility No restrictio
Slide 137: Structure of the regulatory contract
Structure of the regulatory contract Fees Assumed traffic growth: +3.75% Adjustments depending on traffic Possibility of increasing airport fees: inflation + 3.25% per charging Repayment +4.00% pax p.a/ period(1) TRAF(2010) <0 +2.46% mvts p.a No restrictions on structural changes +3.75% pax p.a/ +2.
Slide 138: Outlook for future contracts
Outlook for future contracts Stable principles of the regulated framework Return on capital employed No clawback if ADP over performs Flexibility of scope of regulation Under the terms of the Order of 16 September 2005 relating to regulation: Diversified real estate will be removed from the re
Slide 139: Thank you for your attention
Thank you for your attention 139