Aéroport de Paris - 2018 Registration document

FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND CONSOLIDATED FINANCIAL STATEMENTS 20

The economic relationship between hedged items and hedging instruments qualified as hedge accounting according to IFRS 9 May be analysed as follows:

Hedged item

Hedging instrument

Maturity date

Nominal value

Maturity date

Nominal value

Hedging ratio

Rate

Type

Rate

Type

TAV Airports Bank loan

2028 EUR6M + margin

237

Interest rate swap 2026 8.00% 237

100% 90% 90%

Bank loan Bank loan Bank loan

2031 2031 2025

4.50% 4.50% 5.00%

71 71

Interest rate swap 2031 Interest rate swap 2031

6.00% 64 6.00% 64

49 Interest rate swap 2025 5.00%

49 100%

LBUSD6M + margin LBUSD6M + margin

Bank loan

2022

7

Interest rate swap 2022 5.00%

7

100%

Bank loan

2022

4 Interest rate swap 2022 6.00%

4 100%

AIG

LBUSD6M + margin

2023- 2025

LBUSD6M + margin

Bank loan

2023-2025

227

Interest rate swap

228

100%

There was no ineffectiveness during 2018 in relation to the interest rate swaps. EXCHANGE RISKS

In order to reduce exposure to exchange fluctuations, the Group has a hedging policy consisting of: ¯ implementing derivative instruments; ¯ neutralising exchange rate risk as far as possible by reducing the balance of revenue and expense in these currencies; ¯ if necessary making partial forward sales of dollars for residual balances.

Following the takeover of TAV Airports (see Note 2), the Group is henceforth exposed to exchange risk. TAV Airports converts its financial statements in a currency other than its functional currency, therefore the main risk of change relates to the variations of the euro currency compared to the Turkish lira and American dollar. The currencies in which transactions are mainly denominated are euro, Turkish lira (TRY) and American dollar, as well as few currencies from the Persian Gulf liked to American dollar with a fixed parity, e.g. Sudanese rial, United Arab Emirates dirham and the Oman rial.

The breakdown of financial assets and liabilities by currency is as follows:

As at 31 Dec., 2018

Other currencies

Euro

TRY USD AED JOD

(in millions of euros)

Other non-current financial assets

403

351

1

51

-

- -

-

Contract assets Trade receivables Other receivables1

9

3

-

-

2 9

4

628 163 201

502 104

24 10

35 46

31

27

-

1

2 6

Other current financial assets Cash and cash equivalents TOTAL FINANCIAL ASSETS

157

8

14

1

15

2,056 1,880 3,460 2,997 5,970 5,473

17

64

3

68 115

24 63

60

210 497

15

Non-current debt Contract liabilities Trade payables Other debts1 Current debt

- -

- -

- -

-

6

3

-

3

590 447 1,184 1,055

19

5

4

103

12

40

26

1

26

36

1,159

1,121

21

15

-

-

2

TOTAL FINANCIAL LIABILITIES

8,909 8,099

80 543

5

129

53

1 Other receivables and other debts exclude all accounts which do not constitute, within the terms of IAS 32, contractual rights and obligations, such as tax and social security debts or receivables.

Other currencies relate primarily to the Oman rial (OMR) and Sudanese rial (SAR). Concerning the exposure of TAV Airports to exchange risk, an appreciation/depreciation of the currencies compared to euro of 10% would have a positive/negative impact of €10 million on the profit before tax.

230

AÉROPORTS DE PARIS ® REGISTRATION DOCUMENT 2018