Aeroports De Paris · EURONEXT:ADP
Aeroports De Paris — Investor Day (June 2007)
30 slides from Aeroports De Paris's investor day presentation, Jun 18, 2007
Slide 1: Florence Lenne, Retail Director, 18 June 2007
Florence Lenne, Retail Director 18 June 2007 1
Slide 2: Contents
Contents 1. Our retail business 2. Our strategy 3. The Parisian Gallery 4. Organisation and management 2
Slide 3: Business model
Business model Concession-based model • Royalties = calculated based on sales, with percentages varying from 2% to over 40% depending on product category • Guaranteed minimum, generally expressed as an amount per passenger • Expiration of concessions staggered over time • Average duration of contrac
Slide 4: Société de Distribution Aéroportuaire (SDA)
Société de Distribution Aéroportuaire (SDA) ADP co-operator of alcohol, tobacco, perfume and gourmet food shops SDA's contribution to ADP in 2006 • A 50/50 joint venture created to operate alcohol, tobacco, perfume and gourmet food shops in (€m) 2005 2006 % chg CDG 2 as of 2003 and CDG 1 as of 2006
Slide 5: Our retail areas in 2006
Our retail areas in 2006 Breakdown of 2006 retail areas by zone Breakdown of 2006 retail areas by airport Public retail areas Bars & Restaurants (54%) (11%) 4,012 m² Paris-Orly (29%) 18,724 m² Schengen zone 10,048 m² (8%) 2,828 m² International zone (27%) Paris-CDG (71%) 9,460 m² 24,976 m² • Retail
Slide 6: A thorough understanding of our customers
A thorough understanding of our customers Numerous customer studies A customer base of willing buyers •Upstream research: Luxury without second thoughts: "indulge" "Necessity rules" "You only live once" Behavioural studies Third-biggest group: Biggest target group: Motivation studies Pragmatic shopp
Slide 7: Optimised management of passenger flows
Optimised management of passenger flows Time spent in the airport Retail areas located in the heart 1h30 ou of passenger flows 90 min or less moins Over Plus de 3hrs 3h00 18% • Retail areas located directly at the exit 30% of security checkpoints Goal: reach 100% of passengers 1h31àto2h00 1h31 2h Br
Slide 8: A customer base of willing buyers
A customer base of willing buyers An international customer base Diversified demand •The three leading routes in terms of total sales: • United States Europe • Japan France 41.1% • Morocco +8.3% 21.5% North America +0.9% Asia/Pacific •The three leading routes in terms of 9.7% 6.4% sales per passenge
Slide 9: 2006 results: Strong retail performance
2006 results: Strong retail performance Sales in €m 2005 2006 % chg Retail areas 196.9 210.8 + 7.1% • Retail sales rise faster than passenger Duty-free shops 118.9 131.9 +10.9% traffic (7.1% vs 4.8%) Shops in public areas 8.4 9.2 +10.0% • Strong performance of duty-free shops Bars & restaurants 21.0
Slide 10: Strong growth of duty-free shops in 2006
Strong growth of duty-free shops in 2006 Breakdown of duty-free sales €131.9 million in duty-free sales • Duty-free sales account for 62.6% of retail revenues Leisure/ Gourmet products gifts (5%) Perfumes & (7%) Cosmetics (46%) • Duty-free sales rose 10.9% in 2006 +7.1%+3.2% and 9.9% in Q1 2007 Fash
Slide 11: Strong potential for improvement
Strong potential for improvement Comparison of royalties per passenger* 3,8 3,4 Average: 3,0€ 3,0 2,6 2,6 Fraport ADP UK Airports Schiphol Copenhague Source: annual reports * Royalties on retail shops, bars & restaurants and other services (excluding parking)/passengers 11
Slide 12: Strategies for boosting sales/passenger
Strategies for boosting sales/passenger • Increase visibility of retail areas 1. Increase hit rate • Increase density of retail areas • Improve passenger flows, signalling • Manage passenger time • Enhance attractive look of retail concepts with offers adapted to customer segments • Marketing campai
Slide 13: Contents
Contents 1. Our retail business 2. Our strategy 3. The Parisian Gallery 4. Organisation and management 13
Slide 14: An ambitious development strategy
An ambitious development strategy Our product positioning 1 Extension of retail areas 2 14
Slide 15: Paris: the fashion, beauty and food capital of the world
Paris: the fashion, beauty and food capital of the world Our product positioning 1 2 A big competitive advantage... ... awaiting to be captured • Paris, the fashion, beauty and food capital •Strengthen brand identity and image: of the world Set up corners dedicated to specific brands • All of the le
Slide 16: Expansion of the product line
Expansion of the product line Our product positioning 1 2 Enhance product offer Royal Quartz: a good example in watches • Encourage diversification : fashion, accessories, luxury and gourmet products • Introduce more trendy brands • Permanently update the brand portfolio to remain in vogue • Adapt p
Slide 17: A dynamic marketing policy
A dynamic marketing policy 1 2 Our product positioning Numerous marketing campaigns & events Sales events aligned with those in downtown Valentine’s Day Campaign: • Seasonal: Valentine's Day, Mother's Day, Christmas 12-26 February 2007 • Image: highlight latest innovations, brand-name products • Pro
Slide 18: An ambitious programme to develop retail areas
An ambitious programme to develop retail areas Bigger, more effective retail spaces 1 2 Expansion of retail areas (sqm) Density of stores in the international zone(1) +29.9% 23,400 +16.4% 20,096 15,200 +43.6% 10,581 5,000 +98.5% 2,518 3,976 4,700 +18.2% 2004 2010 % change 2010/2004 2004 2010 Public
Slide 19: Plan to expand retail areas surpassed in 2007
Plan to expand retail areas surpassed in 2007 Bigger, more effective retail spaces 1 2 Plan announced in H1 2006 2007: Outperformance +1058 42,250 sqm +12.5%46,349 +17.6% 41,192 sqm +620 41,192 37,172 13,953 34,305 35,024 14 995 13,333 +14 13 333 2,842 10 581 9 460 9 177 3 957 2,828 +159 2 518 2 828
Slide 20: Allocation rules designed to maximise profits
Allocation rules designed to maximise profits Bigger, more effective retail spaces 1 2 Securing and optimising core business: beauty products, alcohol, tobacco • Three highly profitable activities • All passengers must pass in front of these shops Prime locations for luxury goods, fashion & gourmet
Slide 21: Allocation of new retail surface areas in 2007
Allocation of new retail surface areas in 2007 Bigger, more effective retail spaces 1 2 Allocation by kind of products kids' stores, leisure, gifts and services 21,2% luxury goods, Core business fashion & 42,5% gourmet foods 36,3% 21
Slide 22: Contents
Contents 1. Our retail business 2. Our strategy 3. The Parisian Gallery 4. Organisation and management 22
Slide 23: A good example of our future strategy
A good example of our future strategy 4,600 sqm of retail space Focus on brands in the heart of passenger flows Airy retail spaces Density* meets highest European standards with open, mall-like shops 753 sqm 519 sqm ADP The Parisian Gallery * Surface area of duty-free shops per million departing int
Slide 24: The Parisian Gallery
The Parisian Gallery Largest perfume shop in Paris-CDG Implementing our strategy • Secure our highly profitable core business • Prime location at the exit of security checkpoints • Highlight star brands through customised corners: Dior, Chanel, Lancôme, Guerlain, YSL • Develop health care products a
Slide 25: The Parisian Gallery
The Parisian Gallery The world’s most impressive Implementing our strategy airport wine cellar • Secure our highly profitable core business Alcohol & tobacco = 550 sqm • Prime locations • Satisfy two different types of shoppers: • Pleasure shopping: Wine cellar: the world's most impressive airport w
Slide 26: The Parisian Gallery
The Parisian Gallery Star brands Implementing our strategy • Prime locations • Highlight star brands and a broad product offer: • Fashion & accessories/luxury goods: Hermès, Longchamps, Hugo Boss, Céline, S. Ferragamo, Lacoste, Guess Arrival of new brands: Armani • Watches & Jewellery Watches: fashi
Slide 27: Contents
Contents 1. Our retail business 2. Our strategy 3. The Parisian Gallery 4. Organisation and management 27
Slide 28: Organisation and management
Organisation and management DEVELOPMENT PRODUCT OFFER OPERATIONS OF RETAIL AREAS • Installation of concessions • Product strategy • Oversight of projects to • Design of retail areas • Identification of potential develop retail areas • Recommended business concessions • Oversight of performances mix
Slide 29: New expertise
New expertise Marketing, Retail and Communications Director : Pascal BOURGUE Doctorate in corporate management from Paris-Dauphine IEP Retail director : Florence LENNE Retail specialist (15 years at Printemps, then 4 years at EuroDisney, where she was Vice-President of Retailing for 3 years) ESCP gr
Slide 30: Thank you for your attention
Thank you for your attention 30