Aeroports De Paris · EURONEXT:ADP
Aeroports De Paris — Investor Presentation (June 2007)
46 slides from Aeroports De Paris's investor presentation, Jun 18, 2007
Slide 1: Real Estate
Real Estate François Cangardel, Real Estate Director 18th June 2007 1
Slide 2: Contents
Contents 1. Our real estate business 2. Strategy and development 3. Real estate management team 2
Slide 3: General presentation
General presentation 1 2 3 Our real estate business • Our real estate assets are located at our three airports (Paris-CDG, Paris-Orly and Paris-Le Bourget) and at our 10 general aviation airfields in the Greater Paris region • Aéroports de Paris has full ownership of these assets 3
Slide 4: Our business
Our business 1 2 3 Our real estate business • Aéroports de Paris' real estate division is organised by business unit and manages all of the Group's property assets (land and buildings) excluding the airport terminals • As the owner of both the land and buildings, Aéroports de Paris is active in thre
Slide 5: Major real estate assets with strong development potential
Major real estate assets with strong development potential Our real estate business 1 2 3 Land that cannot be developed Real estate development: 1,213 ha 863 ha 13% 18% Developed land Available 69% land reserves 866 ha (13%) 347 ha • Orly: 151 ha • CDG: 138 ha • Le Bourget: 41 ha • Airfields: 17 ha
Slide 6: Scope of the Economic Regulation Contract
Scope of the Economic Regulation Contract Our real estate business 1 2 3 Definition of diversification real estate • For the land and real estate development activities of Aéroports de Paris, the Economic Regulation Contract* distinguishes between: - All land, surface areas, buildings and facilities
Slide 7: Types of real estate assets
Types of real estate assets 1 2 3 Our real estate business • Aviation services Examples: aviation services portfolio - Cargo Runway buildings Orly industrial - Maintenance hangars FedEx zone - Catering - General aviation Diversification Aviation surface areas areas aviation 49% 51% New cargo 49% sta
Slide 8: A diversified, long-term clientele
A diversified, long-term clientele Our real estate business 1 2 3 • Aéroports de Paris provides real estate products and services to about 670 external clients • The overall occupancy rate of buildings leased to third parties at airports is 89.6%. • Our 10 biggest clients: Air France – KLM FedEx WFS
Slide 9: Undeveloped land leased to third parties (532 ha)
Undeveloped land leased to third parties (532 ha) Our real estate business 1 2 3 Land leased to third parties: 532 hectares Revenues from land leased to third parties: €61.1m* • Land leased to third parties: Aviation - Paris-Orly: 126 hectares Diversification (249 Ha) services - Paris-CDG: 283 hecta
Slide 10: Buildings leased to third parties
Buildings leased to third parties Our real estate business 1 2 3 Buildings with internal and external leases Footprint of buildings: 334 ha External revenues : €55m* • The average age of building assets is about 40 years at Paris-Orly and roughly 20 years at Paris-CDG • With the exception of areas i
Slide 11: Main real estate zones: Paris-CDG
Main real estate zones: Paris-CDG Our real estate business 1 2 3 11
Slide 12: Paris-CDG: real estate assets benefit from strong growth of air traffic
Paris-CDG: real estate assets benefit from strong growth of air traffic Our real estate business 1 2 3 Airport-related real estate Paris-CDG: Current breakdown of usable surface areas by portfolio • Paris-CDG is a powerful international hub • Clients often operate airport-related activities, whose b
Slide 13: Main real estate zones: Paris-Orly
Main real estate zones: Paris-Orly Our real estate business 1 2 3 13
Slide 14: Paris-Orly: 15 km from Paris
Paris-Orly: 15 km from Paris Our real estate business 1 2 3 Emphasis on diversification real estate Paris-Orly: Current breakdown of building surface areas by portfolio • Paris-Orly is a convenient airport located on major transportation networks just outside of Paris. • Thanks to our vast land rese
Slide 15: Full-year 2006 revenues
Full-year 2006 revenues Our real estate business 1 2 3 Breakdown of 2006 revenues Sustained growth in 2006 + 4.3% 175.7 Rental charges (7%) Internal lease 168.3 revenues (27%) Internal 43.8 48.1 lease revenues New contracts Other Rebilling of 10.5 Indexing 11.4 rental +4.5 +0.4 +0.8 External lease c
Slide 16: Strong earnings growth in 2006
Strong earnings growth in 2006 Our real estate business 1 2 3 (€m) 2005 2006 % chg • The increase in revenues is mainly due to leasing of undeveloped land Revenues 168.3 175.7 + 4.4% as part of new real estate development projects • Two non-recurring items had a EBITDA 73.1 77.2 + 5.6% negative impa
Slide 17: Strategy and development
1. Our real estate business 2. Strategy and development - Paris – CDG - Paris – Orly - Paris – Le Bourget and the airfields 3. Real estate management team 17
Slide 18: Our strengths and advantages
Our strengths and advantages Strategy 1 2 3 • Full ownership of immediately available real estate assets • Top-quality land reserves serviced by a solid transportation network and located near a major metropolitan area • A wide variety of real estate property for professional or commercial use, with
Slide 19: Our vision
Our vision Strategy 1 2 3 • Invest in areas where our strengths create value • Develop land reserves in harmony with the identity and strengths of each airport • Place priority on the development of diversification assets • Enhance the value and increase the density of existing property developments
Slide 20: Development of available land reserves
Development of available land reserves Strategy 1 2 3 2006-2010 targets CDG Orly Le Bourget 20
Slide 21: Real estate developments in 2006
Real estate developments in 2006 Strategy 1 2 3 2006 real estate developments • At Orly, 9.5 ha were developed in 2006, corresponding to land leased to La Poste for the construction of the Southern Paris regional mail sorting 24.9 ha centre (net surface area of 35,000 sqm built on 9.5 ha) 35,000 sqm
Slide 22: Development of diversification real estate: 2006-2010
Development of diversification real estate: 2006-2010 Strategy 1 2 3 Land Development Development of building areas Diversification Aviation services 22
Slide 23: Potential to create value
Potential to create value Strategy 1 2 3 One potential upside of our real estate policy is to rehabilitate property assets, increase the density of airport developments and adjust our leases to market prices Rehabilitation Greater density • Rehabilitation of the industrial zone • At Roissy: Roissypo
Slide 24: Potential to create value
Potential to create value Strategy 1 2 3 One potential upside of our real estate policy is to rehabilitate property assets, increase the density of airport developments and adjust our leases to market prices Value creating potential Widely differing situations of pending contracts between airports:
Slide 25: Our airports
a & & Ww Q Ww » te cS) Qa S) fe ‘wi < = : Our airports
Slide 26: Paris-CDG real estate developments: 2006-2010
Paris-CDG real estate developments: 2006-2010 Strategy 1 2 3 Offices, hôtels, Retailing Logistics Business and industrial facilities/transit Aviation services Cargo, maintenance hangars 26
Slide 27: Paris-CDG: Keep pace with air traffic growth
Paris – CDG: Keep pace with air traffic growth Strategy 1 2 3 Strategic priority: keep pace with Paris-CDG: Development of buildings the dynamic momentum of air traffic 2006 - 2010 • At Paris-CDG, cargo and airport services are growing at a dynamic pace • Numerous support services also benefit 37% f
Slide 28: Cargo: A major challenge for CDG
Cargo: A major challenge for CDG Strategy 1 2 3 Paris-CDG cargo terminal Project to extend FedEx hub • Lot size: 35,580 sqm • Building surface area (offices and warehouses): • FedEx now occupies 77,000 sqm of buildings over 22,600 sqm 29.6 Ha of land • ADP's investment: Attente photo€15.8m Fedex • E
Slide 29: Promising prospects for support services at Paris-CDG
Support services Strategy 1 2 3 Promising prospects Support services keep pace with for support services at Paris-CDG the rise in air traffic Passengers traffic (in Mpax) Forecast (cumulated) 300,000 100 • There is a strong correlation between air tertiaire à CDG 227,597 Trafic en millions de passag
Slide 30: Retail areas and services
Retail areas and services Strategy 1 2 3 Ibis Hotel Aéroville shopping centre Hotel Ibis • Leased surface area: 9,443 sqm • Land surface area: 10 ha • Room occupancy rate: 95% • Retail surface area subject to CDEC: 50,000 sqm • Target customers: employees • Extension project to add over 250 rooms •
Slide 31: Paris-Orly real estate developments: 2006-2010
Paris-Orly real estate developments: 2006-2010 Strategy 1 2 3 Offices, hôtels, Retailing High-standing activity Logistics Business and industrial facilities/transit Aviation services Cargo, maintenance hangars 31
Slide 32: Paris-Orly: Priority on diversification
Paris-Orly: Priority on diversification Strategy 1 2 3 Strategic priority: take advantage of close Paris-Orly: Development of buildings proximity to Paris to develop services sector 2006 - 2010 • Over the next 15 years, Paris Orly has the potential to become the prime business district south of Pari
Slide 33: Paris-Orly: aviation services projects
Paris-Orly: aviation services projects Strategy 1 2 3 New cargo station has already been leased before its construction Open for business: March 2008 Land surface area: 40,000 sqm Buildings: 14,700 sqm net floor space Investment: €12m ADP is the project developer Amount of rent: €2.4m a year 3 main
Slide 34: Paris-Orly: logistics services
Paris-Orly: logistics services Strategy 1 2 3 Ideally located on north-south motorway axis 25 ha dedicated to logistics • Given the scarcity of available land in the inner suburbs of Paris, there is strong demand for large surface areas in this sector • ADP has large land reserves zoned to accommoda
Slide 35: Cœur d'Orly
ss irategy |_| _ _ Coeur d’Orly _w& AEROPORTS DE PARIS 35
Slide 36: Greater Paris region: a buoyant market for office space
Greater Paris region: a buoyant market for office space Strategy 1 2 3 Largest business market in Europe Strong growth in take up* * Take up in the Greater Paris region 2,85 Millions of sqm 2,18 1,94 1,69 1,54 1,40 London 42.5m Brussels 12m 2001 2002 2003 2004 2005 2006 Munich Source: CBRE Greater 1
Slide 37: An attractive sector
An attractive sector Strategy 1 2 3 Demand for large surface areas Attractive prices Breakdown of take up Average rent for new or renovated by transaction size in 2006 buildings (sqm/year excluding tax) < 1000 sqm 1000-5000m² 568 € 438 € 32% 26% 264 € 199 € 42% Paris QCA La Défense 1ere 2eme > 5000s
Slide 38: Easily accessible
Easily accessible Strategy 1 2 3 • There are numerous ways to access the business park: • A106 and A86 motorways; local access roads • The former RN7, which will be reopened to traffic to service Coeur d'Orly • The RER C rapid transit line, with two stations located north of Coeur d'Orly • The Anton
Slide 39: Cœur d'Orly: potential to develop one million sqm
Cœur d’Orly: potential to develop one million sqm Strategy 1 2 3 Total Cœur d’Orly project 2007 Land: 130 ha Phases 2 and Buildings: 1 million sqm 3: after 2013 Land: 15 ha 2013 Buildings: 230,000 sqm (70,000 sqm by 2010) Upmarket office space: 130,000 sqm to 195,000 sqm Hotel complex: Phase 1 24,00
Slide 40: A varied offer with high value added products
A varied offer with high value added products Strategy 1 2 3 Creation of an international business district Coeur d'Orly project: phase 1 • The goal of the Cœur d’Orly project : Pedestrian mall with retail shops and - To become the prime business district services of southern Paris within the next 1
Slide 41: Phases of the Cœur d'Orly project
Phases of the Cœur d’Orly project Strategy 1 2 3 December 2006: Begin consultations with developers and investors 2010: First buildings 20072007 2008 2009 open for business End 2007: End 2008: Sign first Start-up of contracts construction H1 2008: Apply for building permits 41
Slide 42: Financing: Coeur d'Orly phase 1
Financing: Coeur d'Orly phase 1 Strategy 1 2 3 ADP investment in Coeur d'Orly 40 to 45 M€ 40 - 45 Aménagement 100 % financed M€ by ADP 25% to 35% Equity Consortium €350M to Développement of ADP + €500M 65% to 75% Partners Debt 42
Slide 43: Real estate investment budget
Real estate investment budget Strategy 1 2 3 Investment budget Development plan In €M 56% 44% €164 M Diversification Aviation services CRE budget • The investment budget might be revised depending on the issue of the projects in progress 43
Slide 44: Real estate management team
1. Our real estate business 2. Strategy and development 3. Real estate management team 44
Slide 45: Organisation and management
Organisation and management Organisation and management 1 2 3 Real Estate Department • Strategy • Investment opportunity analysis Development Commercial division CDG and Orly of land servicing real estate division • Project management • Asset management • Facility management • Identification of oppo
Slide 46: New expertise
New expertise Organisation and management 1 2 3 Real Estate Director: Francois Cangardel Urban planning specialist Former development director at SEM92 Graduate of Ponts et Chaussées with an MBA from HEC Deputy Director: Hubert Fontanel Development specialist Graduate of Ponts et Chaussées with an M
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