Universal Registration Document 2024

PRESENTATION OF THE GROUP 1 COMPETITIVE POSITION

1.4

COMPETITIVE POSITION

Groupe ADP in Paris faces several types of competition for all passenger traffic routes and for the air cargo business.

AVIATION

Short-haul passenger traffic is steadily decreasing as the high-speed rail network (LGV) develops. Since 1981 and the launch of the Paris-Lyon TGV, the Eurostar, the Thalys, and the high-speed lines connecting Paris to Marseille (2001), Strasbourg (2007) and, more recently, Bordeaux (2017) have offered passengers alternatives to air links. The latter now represent only a negligible share of the transport market on these routes, which were nevertheless among the busiest. Most of the decrease is concentrated on connections to and from Paris Orly, where most of the traffic is point-to-point. At Paris Charles de Gaulle, the operation of the SkyTeam hub allows the traffic of these airlines to better resist the competition from railroads. The European Commission approved, in the context of an implementing decision adopted on 1 December 2022 1 , the implementation of French law no. 2021-1104 of 22 August 2022 on the fight against climate change and strengthening resilience to its effects (known as the “Climate and Resilience Act”), aimed at eliminating domestic flights in France, including for connecting flights, when a rail alternative of less than two and a half hours exists. The lines concerned are Paris-Orly – Nantes, Paris-Orly – Bordeaux and Paris-Orly – Lyon. This measure will be reviewed at the end of a three - year period. Groupe ADP’s medium-haul passenger traffic in Paris faces direct competition from other airports serving the same catchment area. This is mainly Paris-Beauvais, which is the Paris base for the main European low-cost airline, Ryanair. CARGO ACTIVITIES Conventional freight traffic is a competitive business. Indeed, any goods flown to a European airport can reach their final destination by trucking while respecting the contractual delivery deadlines. Paris airports are in competition, in particular, with the Frankfurt Airport whose annual tonnage is very close to that of Aéroports de Paris. Express freight traffic is also in competition, but requires that part of its activity be operated at night to meet its contractual delivery deadlines (24 hours for intercontinental shipping). The Paris-Charles de Gaulle hub, which is not subject to a night curfew, has become the main European entry point for FedEx, one of the three main global express

Long-haul passenger traffic to and from Paris is in competition with all airports that offer connecting service (hubs). All the main European airports (Frankfurt, London, Amsterdam, Madrid) also offer connecting service. To this long-standing competition has been added that of medium sized European airports (Lisbon, Dublin, Helsinki, Reykjavik, etc.) mainly towards the American and Asian continents. Lastly, competition from the Gulf and Istanbul hubs is increasing, particularly for Europe-Asia. Connecting passenger traffic in Paris is in competition with all the hubs mentioned above since the passengers concerned go through Paris to make a connection that they could make at another airport. Overall, Groupe ADP offers a very diversified air service, and its particularity, compared to the main comparable European airports, lies in the significant development of intercontinental services. In addition, Groupe ADP associates the growth in air traffic with the development of multi-modality, which means strengthening the complementarity of transport modes (rail air in particular) at the Paris-Charles de Gaulle and Paris-Orly hubs. This opportunity is one of the 20 objectives of Groupe ADP’s 2025 Pioneers strategic roadmap, the objective being to achieve a 50% increase in the number of multi-modal connecting passengers at Paris-Charles de Gaulle and double the multi-modal connection rate at Paris Orly in 2025 compared to 2019. freight operators with DHL and UPS. Paris-Charles de Gaulle competes with other European airports with night-time activities, including Liège (FedEx’s second base in Europe, in which Groupe ADP has a 25% share), Cologne (UPS’s main base) and Leipzig (DHL’s main base). As for airmail traffic, it faces competition from the development of digital media, which is reducing the volume of traditional mail. The air mail business is shifting towards express freight and Paris, which is La Poste group’s main air base, faces competition from the express freight mentioned in the previous paragraph.

1 Commission Implementing Decision (EU) No. 2022/2358 of 1 December 2022 concerning the French measure introducing a limitation on the exercise of traffic rights due to serious environmental problems, pursuant to the article 20 of Regulation (EC) No. 1008/2008 of the European Parliament and of the Council.

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UNIVERSAL REGISTRATION DOCUMENT 2024 w AÉROPORTS DE PARIS