ADP // 2021 Universal Registration Document

F I NANC I AL I NFORMAT I ON

GROUPE ADP CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2021

6.2.1 IFRS 16 Lease contracts, Groupe ADP as Lessee

The Group applies IFRS 16 “Leases”. This standard requires for each lease agreement in which the Group is a lessee, with some exceptions, the recognition of an asset related to the right of use for lease contracts previously classified as operating leases pursuant to IAS 17 and a lease debt equivalent to the present value of the remaining payments of the lease. The Group discounts the lease obligations of the contracts at the marginal borrowing rate taking into account the remaining term of the contracts at the date of first application of the standard. The Group assesses whether a contract is a lease under the new IFRS 16 standard at the contract’s inception. This valuation requires the exercise of judgment to assess whether the contract relates to a specific asset, and if the Group obtains substantially all the economic benefits associated with the use of the asset and has the ability to control the use of that asset.

Contracts on the scope of this standard mainly concern real estate and vehicles lease contracts. In accordance with the provisions of the standard, the Group has chosen to use the two practical expedients offered to to lease agreements and not apply IFRS 16 restatement to contracts which: ◆ the underlying asset is of low value; the Group has adopted €5 thousand as a threshold; ◆ the initial duration of the contract is less than or equal to 12 months. The right of use related to lease contracts restated are included in tangible assets and the lease debt is included in current debt for the part less than one year, and in non-current dept for the part higher than one year (see note 9.4.1). Interest expense on lease obligations is presented in the financial result in Note 9.3.

The assets related to the use right are detailed as follows:

Land and improvements of land

Plant and equipment 1

Total

Buildings

Other

(in millions of euros)

6

Gross value

52

86

10

1

149

Accumulated amortisation & depreciation

(7) 45

(13)

(5)

- 1 - - - - 1

(25)

Carrying amount as at 1 Jan 2021

73

5 3

124

Purchases

1

2

6

Disposals and write-offs

(1)

-

-

(1)

Depreciation and amortisation

(4)

(8) (2) 65 86

(3)

(15)

Translation adjustments

-

-

(2) 112 151

Carrying amount as at 31 December 2021

41 52

5

Gross value

12

1

Accumulated amortisation & depreciation

(11)

(21)

(7)

-

(39)

1 Including vehicles.

6.3 Investment property

Investment properties appear on a specific line of the balance sheet and, as allowed by IAS 40, are valued using the historical cost method, that is to say their cost diminished by the accumulated depreciation and cumulative impairment losses. Such buildings are depreciated on a straight-line basis over their use duration ranging from 20 to 50 years. Long-term leases of land of in Building Leases and Temporary Occupation Authorizations for which the Group is the lessor are generally for a minimum term of 40 years. These leases also provide that, in addition to fixed cash payments throughout the lease, the Group obtains, at the end of the contract, full ownership of the buildings built by the lessee unless the Group waives it. In this case, the lessee will bear the demolition costs.

Investment properties are real estate (land, building, building complex or part of one of these elements) whether held in full ownership or through a ground lease contract and to be leased to third parties and / or in the prospect of a capital gain. Investment properties are defined as opposed to buildings occupied by Groupe ADP for its own needs (head offices, administrative buildings or operating buildings.) Those buildings are valued in the balance sheet under the item Tangible fixed assets. Vacant buildings that are not intended to be used by Groupe ADP for its own needs are treated as investment properties. Those are essentially owned by Aéroports de Paris SA. Mixed-use buildings that meet the definition of investment properties are retained up to the amount of the share of the floor space occupied by third parties. This change in estimate compared to 2020 has a non-material impact.

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