ADP // 2021 Universal Registration Document

F I NANC I AL I NFORMAT I ON

GROUPE ADP CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2021

6.4 Impairment of intangible, tangible and investment properties

Intangible assets, property, plant and equipment and investment properties are tested for impairment when the Group identifies impairment indicators. An impairment test is also performed for previously impaired investments. Level of impairment testing - When the recoverable amount of an intangible asset or goodwill taken individually cannot be determined, the Group determines the recoverable amount of the cash-generating unit (or group of cash-generating units) to which the asset belongs. Thus, for example, for the rights to operate an airport, the cash-generating unit tested corresponds to the assets and liabilities of the fully consolidated concession. As regards the Parisian assets, which include in our opinion the three platforms Paris-CDG, Paris-Orly and Paris-Le Bourget, these assets constitute, a single cash-generating unit as long as there is a strong interrelationship between the activities carried out within the three Paris airports. Frequency of impairment testing - For intangible assets with an indefinite useful life and goodwill, a test is performed at least once a year and whenever an indication of impairment appears. For land that is assumed non-depreciable, it is tested for impairment if there is an indication of impairment. For intangible and tangible assets that are subject to amortization, an impairment test is performed at UGT level when the Group identifies one or more indications of impairment of the asset. This is the case when significant changes with a negative effect on the entity have occurred during the period, or are expected to occur in the near future. The criteria used to assess indications of impairment may include, in particular, a lower than expected These elements therefore justify that the Group has carried out impairment tests on airport concessions and service activities previously impaired or presenting a proven risk of impairment, as well as on its Parisian assets, in order to provide a better valuation of the Group’s assets, taking into account all the elements known to date. As a consequence, the Group carried out a broad review of its financial trajectories: ◆ in France, on the assets of the Paris airport hubs;

performance, a decrease in traffic, a significant unfavorable change in market data or the regulatory environment, or obsolescence or material deterioration not provided for in the depreciation plan. Estimation and recognition of impairment loss - In the case where the recoverable amount is less than net book value, an impairment loss is recognized for the difference between these two amounts. The recoverable value is estimated by discounting expected cash flows before debt service at the weighted average cost of capital. To determine the cash flows, the Group reviews the financial trajectories taking into account all known elements at the date. With regard to the discount rates, the data used by the Group are based on averages over the last 3 months, both for the risk-free rate and for the market premium and betas of comparable companies. The book value corresponds to the net assets in the consolidated view, after allocation of the acquisition price. The recognition of an impairment loss on depreciable tangible or intangible fixed assets leads to a revision of the depreciable basis and possibly of the depreciation schedule of the assets concerned. These may be reversed subsequently if the recoverable amount becomes higher than the net book value. The value of the asset after reversal of the impairment loss is capped at the carrying amount that would have been determined net of depreciation if no impairment loss had been recognized in prior years. On the other hand, impairment losses on goodwill are irreversible. ◆ but also abroad on airport concessions controlled by the Group whose situation has changed since the end of last year (concessions operated by TAV Airports and by AIG). The fall in air traffic linked to the Covid-19 health crisis has an unfavorable impact on the recoverable amount of the Group’s investments, estimated on the basis of discounted cash flows. Conversely, the fall in discount rates, due to betas of companies in the airport sector and declining country risk premiums in recent months (over a comparable time horizon) has a favorable impact on the recoverable value of Group’s investments.

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Impairment losses and reversals can be analyzed as follows:

2021

2020 (44) (318)

(in millions of euros)

Impairment losses on goodwill

(1)

Impairment losses on intangible assets (others that goodwill)

- -

Impairment on tangible assets

(74)

IMPAIRMENT LOSSES NET OF REVERSALS OVER THE PERIOD

(1)

(436)

The Covid-19 health crisis continues to have significant impacts on air traffic. This drop in traffic has impacts on aeronautical revenues and commercial revenues. Since the start of this health crisis, many of the Groupe ADP’s infrastructures were closed, including terminals and even entire airports (see note 2.2).

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