Aéroport de Paris - 2018 Registration document

FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND CONSOLIDATED FINANCIAL STATEMENTS 20 GROUPE ADP CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2018

financial instruments as from 1 January 2018 retrospectively, with no restatement of comparative period at initial application. The main adjustments resulting from the application of this standard are non-significant and concern: ◆ impairment of receivables: transition from a impairment model based on proven losses to a model based on expected losses requires to review the Group’s depreciation policy. The calculation will depend on the characteristics of trade receivables (similar trade receivables, significant trade receivables), the client probability of default and the loss given default;

◆ changes in debts resulting from renegotiation; the Group has calculated the amortized cost of the modified debt by discounting the modified contractual cash flows at the original effective interest rate and the previous amortized cost in the income statement; ◆ classification of the non-consolidated entities: this classification is detailed in Note 18. Furthermore, the table hereafter shows as at 1 January 2018 the reclassification of financial instruments qualified as “available-for-sale financial instruments” as at 31 December 2017.

Breakdown by category of financial instrument – IAS 39 Fair value Available-for-sale financial assets Loans and receivables Fair value option Trading

As at 31 Dec., 2017 published

(in millions of euros)

Other non-current financial assets

376

-

23

29

324

Breakdown by category of financial instrument – IFRS 9 Fair value

Equity instr. – FV through OCI

Equity instr. – FV through P&L

As at Jan 1, 2018

Fair value

Amortised cost

option Trading

(in millions of euros)

Other non-current financial assets

376

-

23

28

1

324

NOTE 2 SIGNIFICANT EVENTS

2.1

Reinforcement of Groupe ADP in the capital of AIG

With the acquisition of AIG, Groupe ADP will be able to deploy its know- how, expertise and service offer. The objectives are to strengthen the air network from Amman, to improve the quality of service offered to passengers and the performance of aeronautical and commercial activities, and finally to ensure sustainable and socially responsible development for the remaining duration of the concession (until 2032). In accordance with IFRS3 ‘Business combinations’, shares previously held were revaluated at fair value through income statement on the date of control acquisition, based on the stock market price at the time of the operation. This revaluation, performed under the partial goodwill method (see Note 3.1), has an impact of €23 million on income statement for the year 2018, as detailed in the following table:

On 18 April 2018, Groupe ADP, through its wholly-owned subsidiary ADP International, has finalized the transaction for the ownership of 51% of the capital, and the exclusive control of Airport International Group (“AIG”), concessionary of Queen Alia International Airport (QAIA) in Amman, Jordan. Groupe ADP’s investment stands at $265 million. The Group, previously held a 9.5% stake in AIG since which was consolidated according to the equity method; following the acquisition of the exclusive control on 18 April 2018, the entity is fully consolidated since that date. AIG is a leading airport operator in the Middle East whose main activity is the operation, maintenance and rehabilitation of the existing terminal, as well as the construction of the new terminal of Queen Alia International Airport, which managed 98% Jordanian traffic with 7.9 million passengers in 2017.

(in millions of euros) Fair value of AIG Airports shares at 9.5%

A B C

24 (3)

Value of loans and shares accounted for by the equity method of AIG as at 18 April 2018

Conversion reserve

4

(A-B-C)

23

Capital gain on the revaluation of the 9.5% interest already held 1

1 Recognized in Share of profit or loss in associates and joint ventures from operating activities.

In accordance with IFRS 3, fair value adjustments on assets acquired and liabilities written back are recognised as counterparty of goodwill adjustments based on information obtained during the allocation period, being 12 months following the acquisition date. Groupe ADP proceeded to the identification

190

AÉROPORTS DE PARIS ® REGISTRATION DOCUMENT 2018