Groupe ADP

Groupe ADP
Company typeSociété anonyme
EuronextADP
CAC Mid 60 Component
IndustryTransport
Founded24 October 1945; 79 years ago (24 October 1945)
HeadquartersTremblay-en-France, France
Key people
Augustin de Romanet de Beaune, CEO
ProductsAirport operations and services
RevenueIncrease €4.700 billion (2019)[1]
Decrease €1.081 billion (2019)[1]
Decrease €588 million (2019)[1]
Total assetsIncrease €16.793 billion (2019)[2]
OwnerFrench state (50.6%)
Number of employees
26,122 (2019)[2]
SubsidiariesParis Aéroport
Websitewww.parisaeroport.fr

Groupe ADP, formerly Aéroports de Paris or ADP (Paris Airports), is an international airport operator based in Paris (France). Groupe ADP owns and manages Parisian international airports Charles de Gaulle Airport, Orly Airport and Le Bourget Airport, all gathered under the brand Paris Aéroport since 2016.

Groupe ADP operates 26 international airports. It owns 46.1% of TAV Airports Holding, and cross-owns 8% of the Schiphol Group. Since 2012, the CEO is Augustin de Romanet. Groupe ADP is owned by the company Aéroports de Paris SA, which is publicly listed at the Euronext Paris (SBF 120 and mid 60).[3]

History

Development of Parisian airports

The company L’aéroport de Paris was created as a établissement public à caractère industriel et commercial in 1945. In 1946, the first provisional terminal at Orly Airport was achieved, as well as the reconstruction of Paris–Le Bourget Airport. In the 1950s, Orly Airport outgrew Le Bourget's traffic, and became the leading Parisian airport, breaking the 1 million passengers/year milestone. Le Bourget launched the first edition of the Paris Air Show in 1953 and switched to business jet operations in 1976.

In 1957, L’aéroport de Paris started to look for a land to build a new Parisian airport. Construction of the airport started in 1966 and Charles de Gaulle Airport officially started its operations in March 1974. In 1976, 20 million passengers flew through the Parisian airports.

During the 1980s and 1990s, L’aéroport de Paris, which became Aéroports de Paris in 1989 and Paris Aéroport in 2016, built new satellites and terminals for the Charles de Gaulle airport (terminal 2, terminal 3). By 1987, traffic in the Parisian airports grew to 40 million. A TGV train station opened within the Charles de Gaulle airport in 1994.

Privatization and modernization of airports

Aéroports de Paris became a public company on 20 April 2005, although the French government retained a majority of the company's shares. In 2008, Aéroports de Paris and Schiphol Group signed a strategic partnership that involved buying 8% of each other's shares to seal the deal.[4] In 2008, French conglomerate Vinci also bought 3.3% of Aéroports de Paris, calling the airport operator "the heart of its strategic aims".[5]

In Parisian airports, the development and consolidation continued. At Paris-Charles de Gaulle Airport, the inter-terminal train system CDGVAL started in 2007. Terminal 2G opened in 2008 to serve international flights to Eastern Europe.[6] Terminal 2E, Satellite 3 (Hall L) opened in 2005 and Satellite 4 (Hall M) in 2012. A museum opened within the airport in 2013 in Terminal 2E, Hall M. In Orly, a development project voted in 2012 plans to merge the airport's south and west terminals with the construction of an 80,000 m2 building to create one great terminal.[7]

In 2012, Aéroports de Paris and Air France decided to work together towards embellishing the experience in Parisian airports and turn Paris-Charles de Gaulle into a competitive hub for international connections. Aéroports de Paris opened the new Hall M in Terminal 2E in July 2012 (7.8 million passengers/year capacity) which contains 65,000 square feet of shops and restaurants, a museum, and Air France's largest business lounge.[6] In November 2014, Aéroports de Paris opened a luxury fashion area in terminal 2E, Hall K of the Paris-Charles de Gaulle Airport.[8] From 2006 to 2015, the number of fine food restaurants grew from 1 to 20 in Paris - Charles de Gaulle Airport, and style fashion brands from 6 to 20.[9]

Subsidiaries and international development

Starting in the 1970s, Aéroports de Paris became an active airport developer in other countries, contributing to the construction of the terminal 1 of the Abu Dhabi International Airport, the terminal 1 of the Shanghai Pudong International Airport, the Mohammed V International Airport, the Damascus International Airport, the Arturo Merino Benítez International Airport,... ADP Ingénierie was created in 2000 as a fully owned subsidiary to provide large-scale engineering for airport-related development projects.

Through its involvement in airport development projects, Aéroports de Paris became a stakeholder in many airports. ADP Management was created as a fully owned subsidiary in 1991 to consolidate the group's growing participations in airports and other industry-related assets. In 2012, in addition to its existing 8% share, ADP Management acquired 38% of TAV Airports Holding, the leading airport operator in Turkey that used to operate the Istanbul Atatürk International Airport as well as airports in Georgia, Tunisia, North Macedonia, Latvia and Saudi Arabia. ADP Management also acquired 49% of TAV Construction.

In 2003, Aelia (subsidiary of Lagardère Services) and Aéroports de Paris created the Société de Distribution Aéroportuaire (SDA) to manage the sales of alcohol, tobacco, cosmetics and food within the Parisian airports. In 2011, the company managing duty-free shops in Parisian airports merged with the SDA.[10] In 2011, Groupe ADP and Lagardère Travel Retail also created Relay@ADP to manage bookstores, press and souvenirs stores in Parisian airports.[11]

In 2001, Aéroports de Paris created its own telecommunications operator, ADP Telecom, which became Hub Telecom a year later, and finally Hub One in 2012. In 2006, Hub One was involved in the creation of Bolloré telecom, thus holds minority shares in the company.[12] In 2016, Hub One deployed the free guest wifi network across the Parisian airports.[13]

In 2011, Aéroports de Paris and French JCDecaux created the joint-venture branded JCDecaux Airport Paris to handle the interactive display advertising system in Parisian airports.[14] In November 2016, Paris Aéroport launched a special photo exhibition with the French photographer Dominique Issermann which were exhibited all around the airport through the JC Decaux Airport display advertising system.[15]

In 2015, Aéroports de Paris and Select Service Partner created the company Epigo to manage fast-food shops in the Charles de Gaulle Airport.[16]

Rebranding Groupe ADP/Paris Aéroport

In November 2015, the group's CEO Augustin de Romanet announced ADP's strategic programme Connect 2020. The plan includes a major overhaul of the company's branding organization:[17]

  • All 3 Parisian international airports (Orly, Le Bourget, Charles de Gaulle) are united under one passenger brand, Paris Aéroport.
  • All other airport-related subsidiaries of ADP are united under one institutional brand, Groupe ADP.

The rebranding shift became effective in April 2016. The Connect 2020 also planned to follow through with the project to unify Orly South and West terminals. In Charles de Gaulle, Terminals of the Satellite 1 will be merged, as well as terminal 2B and 2D. A new luggage automated sorting system and conveyor under Terminal 2E Hall L to speed luggage delivery time for airlines operating Paris-Charles de Gaulle's hub. The CDG Express, the direct express rail link from Paris to Charles de Gaulle Airport, is planned for completion by 2023.[18]

Activities

Paris Aéroport

Following the announcement of the Connect 2020 plan, the passenger brand Paris Aéroport was applied to Parisian international airports (Charles de Gaulle, Orly and Le Bourget). The goal is two-fold: Attract more visitors to the Parisian airports, and thus turn Paris Aéroport into a demonstration of Groupe ADP's expertise in airport management worldwide.[17]

The Paris Aéroport brand borrows the love effect associated with the French capital to define its airport experience, choosing Paris vous aime (Paris loves you) as its tagline.[19]

ADP Ingénierie

ADP Ingénierie was created in 2000 as a fully owned subsidiary to provide large-scale engineering for airport-related development projects.

Airports developed by ADP Ingénierie:

ADP International

ADP International (formerly ADP Management) was created as a fully owned subsidiary in 1991 to consolidate the group's growing participations in airports and other industry-related assets.[21]

Assets owned by Groupe ADP:

Assets under consideration by Groupe ADP:

Airport shops and services

Over the years, Groupe ADP has formed strategic alliances with several large-scale providers to develop its airports' experience.

Partnerships and joint-ventures:

  • Société de Distribution Aéroportuaire (Groupe ADP and Lagardère Travel Retail): management of the sales of alcohol, tobacco, cosmetics, food, and duty-free related products in Parisian airports.
  • Relay@ADP (Groupe ADP and Lagardère): management of bookstores, press and souvenirs stores (travel essentials) in Parisian airports.
  • JCDecaux Airport Paris (Groupe ADP and JCDecaux): management of the interactive display advertising system in Parisian airports.
  • Epigo (Groupe ADP and Select Service Partner-SSP)
management of fast-food shops in Parisian Airports.

Other activities

Groupe ADP is also active in those airport-related sectors:

  • Hub One: Telecommunications operator specialized in complex infrastructures (Airports, ports, congress centers and other trade-intensive hubs).
  • Hub Safe: Airport safety operator. In 2017, Groupe ADP announced its intention to sell its 80% stake in Hub Safe.[24]
  • Real estate: Groupe ADP owns 6,686 hectares of land, including 4,601 hectares for its aviation activities and 1,310 hectares for real estate purposes. Those assets are managed through several subsidiaries including Cœur d'Orly Investissement and Roissy Continental Square.
  • Cargo: In 2015, 2.21 million tons of cargo shipments flew through Parisian airports (Charles de Gaulle and Orly), 2.09 million in Charles de Gaulle alone, making it the 1st air cargo platform in Europe.

Financial results

In million euros 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Gross revenue 2,527 2,633.4 2,739 2,502 2,640 2,754 2,791 2,916 2,947 3,617 4,478
EBITDA 848 883 926.7 972 1,017 1,075 1,109 1,184 1,195 1,567 1,961
Operating income 503.2 512.6 542.2 652 642 657 730 787 696 1,052 1,235
Net income 272.6 269.5 300.1 348 341 305 402 430 435 571 610

Breakdown of the group's revenue by segment:

Segment 2009 2010 2011 2012 2013 2014 2015 2016
Aeronautical 1,449.6 1,429.5 1,505 1,581 1,645 1,671 1,735 1,743
Retail 943.7 869.7 841 902 949 956 935 941
Real estate 232.6 213.7 241 253 265 264 265 263
International activities 69 79 96 97
Other activities 262.3 251.8 255 246 202 215 223

Governance and shareholders

Aéroports de Paris SA - which fully owns and operates Groupe ADP, Paris Aéroport and other airport-related activities - is governed by a board of administrators (6 named by the shareholders, 6 named by the French government, 6 employees' representatives) and by an executive committee, both headed by Augustin de Romanet since 2012. As of 31 December 2018, the shareholders of Aéroports de Paris SA are:[25]

Shareholder Share (%)
French State 50.6
Schiphol Group 8.0
Vinci 8.0
Crédit Agricole Assurances 5.1
Institutional Investors 21.9
Individual shareholders 4.3
Employees 1.6

According to French Transport Code, the French government must remain the majority shareholder.

See also

References

  1. ^ a b c "Financial Release - 2019 Full Year Results" (PDF). parisaeroport.fr. Retrieved 23 March 2020.
  2. ^ a b "Consolidated Accounts - 2019 Full Year Results" (PDF). parisaeroport.fr. Retrieved 23 March 2020.
  3. ^ "Groupe ADP in brief". Parisaeroport.fr. Retrieved 1 July 2017.
  4. ^ Lolke van der Heide (21 October 2008). "Paris and Amsterdam Airports to Increase Cooperation". Spiegel.de. Retrieved 1 July 2017.
  5. ^ "Vinci buys stake in Aéroports de Paris". The New York Times. 2 January 2008. Retrieved 1 July 2017.
  6. ^ a b Nicola Clark (29 March 2012). "Charles de Gaulle Airport Hopes to Win Traffic With Smiles and Shorter Lines". The New York Times. Retrieved 1 July 2017.
  7. ^ Julien Chadeyron (25 June 2012). "The new face of Orly airport in 2018!". Mister10.com. Retrieved 1 July 2017.
  8. ^ Rebecca Mann (21 November 2014). "Aéroports de Paris unveils luxury fashion area at Paris Charles de Gaulle". Moodiedavittreport.com. Retrieved 1 July 2017.
  9. ^ Doug Newhouse (5 January 2015). "Food and fashion grow in Paris". Trbusiness.com. Retrieved 1 July 2017.
  10. ^ Doug Newhouse (12 April 2011). "ADP and Aelia hope to merge DFP with SDA". Trbusiness.com. Retrieved 1 July 2017.
  11. ^ "Aéroports de Paris: Growth in results in 2011". Atn.aero. Retrieved 1 July 2017.
  12. ^ "History". Hubone.fr. Archived from the original on 19 May 2017. Retrieved 1 July 2017.
  13. ^ Claude Soula (19 July 2016). "Comment Roissy et Orly sont passés au wifi illimité". Nouvelobs.com (in French). Retrieved 1 July 2017.
  14. ^ "Aéroports de Paris and JCDecaux create a joint venture: Média Aéroports de Paris". Jcdecaux.com. 3 July 2011. Retrieved 1 July 2017.
  15. ^ Noha Popat (3 November 2016). "Paris Charles de Gaulle becomes "forum for culture" with launch of Dominique Issermann photo exhibition". Moodiedavittreport.com. Retrieved 1 July 2017.
  16. ^ Martin Moodie (1 August 2016). "Aéroports de Paris unveils ambitious retail 're-dynamisation plan' after -8.3% first-half slump in sales per passenger". Moodiedavittreport.com. Retrieved 1 July 2017.
  17. ^ a b Charlotte Turner (19 April 2016). "ADP reveals rebrand and opens Orly South Pier". Trbusiness.com. Retrieved 1 July 2017.
  18. ^ Caitlin Moscatelo (28 December 2016). "New Express Train from Paris to Charles de Gaulle Airport Has Been Approved". Cntraveler.com. Retrieved 1 July 2017.
  19. ^ Leslie Lang (13 May 2016). "Airport Branding: A Logo's Worth a Thousand Words". Apex.aero. Retrieved 1 July 2017.
  20. ^ "SMC partners with international firms to build Bulacan airport". CNN Philippines. 13 August 2019. Archived from the original on 13 August 2019. Retrieved 18 September 2019.
  21. ^ "Page-404".
  22. ^ "Groupe ADP acquires 49% stake in GMR Airports with revised conditions". itln.in. 8 July 2020. Retrieved 8 July 2020.
  23. ^ "GMR Infrastructure Limited announces Strategic Partnership with Groupe ADP for Airports Business" (PDF). GMR Airports. Retrieved 23 October 2020.
  24. ^ "Aéroports de Paris SA: Groupe ADP announced to enter into exclusive negotiations to dispose its 80% stake in its subsidiary Hub Safe". Globenewswire.com (Press release). 24 May 2017. Retrieved 5 July 2017.
  25. ^ "Shareholders". parisaeroport.fr. Groupe ADP. Retrieved 22 September 2019.

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