ADP // 2021 Universal Registration Document

F I NANC I AL I NFORMAT I ON 6 GROUPE ADP CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2021

4.9.2 Impairment tests on investments in associates and joint ventures

The recoverable value of investments in associates and joint ventures is estimated by discounting either Group share’s cash flows after debt servicing or dividends at cost of equity. Regarding the discount rate, data used by Groupe ADP is based on averages for the past 3 months, for the risk-free rate and the market premium. The book value used for the impairment test corresponds to the acquisition cost increased by the share of profit or loss in associates and joint ventures, as well as capitalized interest on shareholder loans when applicable. IMPAIRMENT LOSSES OF INVESTMENTS IN ASSOCIATES AND JOINT VENTURES BY OPERATING SEGMENT Impairment tests of equity accounted investments are based on recovery scenarios in which the 2019 traffic levels should be reached between 2023 and 2024 in line with the assumptions made in the context of the impairment tests carried out at 31 December 2020 - depending on the characteristics of each of the investments and based on Eurocontrol / IATA medium-term traffic forecasts for the regions concerned. In addition, business plans are based on concessions contractual term. The tests performed on investments in associates did show the need to record a write-back of approximately €24 million at 31 December 2021. The main sensitivity of the tests is based on the discount rate. A change in the cost of equity of +100 basis points would result in an impairment loss of around -€190 million. In addition, a sensitivity analysis at the level of traffic indicates that a delay in a return to the level of traffic in 2019 for tested international airport concessions would lead to an additional impairment loss of €2 million.

Investments in associates are tested for impairment when the Group identifies one or more indices of impairment likely to have an impact on the future estimated cash flows from these associates. An impairment test is also performed for previously impaired investments. An impairment loss is recognized if the recoverable value of the investment falls below its carrying value.

The Covid-19 health crisis continues to have significant impacts on air traffic, which has largely slowed since the beginning of the year. This drop in traffic has impacts both in terms of aeronautical revenues and in terms of commercial revenues from investments in associates and joint ventures. As a consequence the Group has carried out a broad review of the financial trajectories of its main investments in associates in order to provide a better evaluation with the information known to date. In view of the evolution of the situation since December 2020, only GMR Airports Ltd, Antalya, Ravinala Airports and the ATU service company have again been the subject of an impairment test. Discount rates, and in particular the cost of equity, have been decreasing since 31 December 2020, the betas of companies in the airport sector and country risk premiums being on a downward trend in recent months (at comparable time horizon) while market risk premiums are decreasing or rising slightly depending on the case. When a decrease in discount rates is observed, this has a favorable impact on the recoverable amount of the Group’s investments, estimated on the basis of discounted cash flows.

4.9.3 Breakdown of balance sheet amounts The amounts relating to the stakes recognized with the equity method can be analysed as follows:

As at 31 Dec. 2021

As at 31 Dec. 2020

(in millions of euros)

International and airport developments

1,551

1,902

Retail and services

-

-

Real estate

23

31 10

Other activities

9

TOTAL INVESTMENT IN ASSOCIATES

1,583

1,943

consolidated shares. As of 31 December 2021, the valuation of GMR’s recognizable assets and liabilities at fair value has been completed and goodwill is finalised.

The main goodwill recognized and included in the above investment in associates amounts to €284 million for the International and airport developments segment. The goodwill related to the RSG shares has also been reclassified as non

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