Aéroport de Paris - 2018 Registration document

FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2018

RESEARCH AND DEVELOPMENT, TRADEMARKS PATENTS AND LICENCES

INFORMATION CONCERNING TRENDS

PROFIT FORECASTS

ADMINISTRATION AND EXECUTIVE MANAGEMENT BODIES

COMPENSATION AND BENEFITS OF CORPORATE OFFICERS

FUNCTIONING OF THE BOARD OF DIRECTORS AND MANAGEMENT BODIES

SOCIAL, ENVIRONMENTAL AND SOCIETAL RESPONSIBILITY INFORMATION

MAIN SHAREHOLDERS

OPERATIONS WITH RELATED PARTIES

Works at the present stage allowed the Group to identify main lease contracts which are vehicle leases and real estate leases. Works in progress mainly concerns the determination of the procedures for monitoring contracts after the application of the standard. The analysis conducted by the Group at this stage shows that the provisional impacts of the application of IFRS 16 are relatively limited: ◆ on the opening balance sheet at 1 January 2019, the estimated impact would lead to: ◆ an increase in assets of around €70 million (an estimated impact of less than 1% of the Group’s total assets), and ◆ the recognition of a lease dept of the same amount (approximately 1.5% of the Group’s financial dept); ◆ the impact on the 2019 income statement should result in: ◆ an improvement in the Group EBITDA of around €10 to €30 million (as a consequence of the reversal of rent charges included in “other external services and charges”), ◆ the recognition of a right of use depreciation between €11 and €20 milllion, and ◆ financial expenses between €1 and €10 million.

Accordingly with the provisions of the standard, the Group has chosen to use the two practical expedients will not apply IFRS 16 for lease contracts which: ◆ the underlying asset is of low value; the Group has retained the amount of €5,000 as a threshold for this contracts; ◆ initial term is less than or equal to 12 months. Regarding the determination of the discount rate the Group takes into account the remaining term of the contracts as of 1 January 2019. Impact of IFRS 16 restatement at the date of first application will have no effect on the cash flow statement, as these items have no impact on cash flow. Future mimimum lease payments not discounted under operating leases, provided in accordance with IAS 17 (Note 14.1), provide a good indication of the lease dept that will be recognized under IFRS 16, the main differences will arise from the application of the practical expedients provided by the standard and the effect of discounting. Finally, regarding the other amendments and interpretations mentioned above, they should not have a significant impact on the Group’s consolidated financial statements.

1.3

Impact related to the first application of IFRS 9 and IFRS 15

The impacts related to the first application of IFRS 9 and IFRS 15 are presented below:

IFRS 15 As at Jan 1, 2018

As at 31 Dec., 2017 published

IFRS 9

(in millions of euros)

Non-current assets

11,139 3,137 14,276

-

-

11,139 3,121

Current assets TOTAL ASSETS

(4) (4)

(12) (12)

14,260

IFRS 15 As at Jan 1, 2018

As at 31 Dec., 2017 published

IFRS 9

(in millions of euros)

Shareholders’ equity – Group share

4,577

- - -

(10)

4,567

Non-controlling interests Shareholders’ equity Non-current liabilities

857

(2)

855

5,434 6,983 1,859 14,276

(12)

5,422 6,979 1,859 14,260

(4)

- -

Current liabilities

-

TOTAL EQUITY AND LIABILITIES

(4)

(12)

20

Since 1 January 2018, the Group applies IFRS 15 “Revenue from contracts with customers” retrospectively only to contracts that are not completed using the cumulative effect of initially applying the standard recognized at the date of initial application. The comparative periods disclosed are therefore not restated in accordance with this method. These non-significant impact mainly concern long term contracts from: ◆ ADP International: revenue from Technical Services Agreements (TSA) are henceforth recognized using a straight line method, considering a continuous transfer of the service (“stand ready obligation over the contract”) and are limited, for the variable consideration, to the highly probable amount. It may be noted that revenue recognition remains unchanged for: ◆ airport fees: the related services are consumed on short cycles and the regulated prices reflect the stand-alone selling price of each service;

◆ revenue recognition from airport safety and security services, received from the “Direction Générale de l’Aviation Civile” (DGAC); these services are recognized progressively as eligible estimated costs reimbursed by the DGAC are incurred, these costs are financed by the airport safety and security fee payed by airlines. This revenue is recognised for the gross amount as Aéroports de Paris SA is primarily responsible for fulfilling its public service mission reimbursed by the DGAC (see Note 4.2.1); ◆ revenue from retail activities, rental income and revenue from car parks as those activities are recorded under the scope of IAS 17 “Leases”; ◆ construction and other services revenue of TAV Airports. If the revenue had been recognized as of 31 December 2018 under IAS 11 and IAS 18, the impact would have been less than €1 million. Backlog required by IFRS 15 is disclosed on Note 14.2. Concerning IFRS 9 “Financial instruments”, the Group applies the new measures relating to the classification, valuation and impairment of

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AÉROPORTS DE PARIS ® REGISTRATION DOCUMENT 2018