ADP_REGISTRATION_DOCUMENT_2017

FINANCIAL INFORMATION ON ASSETS, FINANCIAL POSITION AND RESULTS

RESEARCH AND DEVELOPMENT, PATENTS AND LICENCES

INFORMATION CONCERNING TRENDS

PROFIT FORECASTS

ADMINISTRATION AND EXECUTIVE MANAGEMENT BODIES

COMPENSATION AND BENEFITS OF CORPORATE OFFICERS

FUNCTIONING OF THE BOARD OF DIRECTORS AND MANAGEMENT BODIES

SOCIAL, ENVIRONMENTAL AND SOCIETAL RESPONSIBILITY INFORMATION

MAIN SHAREHOLDERS

OPERATIONS WITH RELATED PARTIES

◆ Technical Service Agreements (TSA) provided by ADP International which will be recognized using a straight line method, considering a continuous transfer of the service nature (“obligation to be ready along the contract period”). Revenue will be recognised in the accounts only if it is highly probable and in practice, the variable part will be declared only when EBITDA, which serves as a basis for the variable part, is realised and under the condition of an expected growth in EBITDA for the remaining contract period. Resulting impacts on equity as at 1 January 2017 are estimated at less than 1% of the total equity of the Group. Considering the scope entry of the TAV Airports sub-group during the second semester 2017, the Group is not able to communicate on the impact of the new IFRS 15 standard on Groupe ADP 2017 revenue. Regarding IFRS 9 – Financial instruments, standard implementation should have an impact on: ◆ depreciation of trade receivables: transition from a depreciation 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 as required by IFRS 9 (and not at the new effective interest rate as calculated so far). The impact of this new accounting treatment as of 1 January 2018 has been estimated not significant for the Group. In addition the Group is currently analyzing its loans and non-consolidated securities in order to comply with IFRS 9 requirements. Estimated impacts of standards effective as from 2019 Regarding IFRS 16 – Leases, the lease contracts impacted by this standard mainly relate to real estate and vehicles. Finally, with respect to the other texts mentioned before, it should not have a significant impact on Group’s consolidated accounts. Atatürk, Ankara Esenboga, Izmir Adnan Menderes, Alanya-Gazipasa, and Milas-Bodrum in Turkey, Tbilissi and Batumi in Georgia, Monastir and Enfidha in Tunisia, Skopje and Ohrid in Macedonia, Médine in Saudi Arabia and Zagreb airport along with ADP International. In 2017, the consortium formed by TAV Airports and Al Rajhi Holding Group concluded agreements to operate the airports in Qassim, Hail and Yanbu International Airports in Saudi Arabia. TAV Airports also conducts business in related areas of airport operations including duty free, catering, ground handling services, information technologies, security and operation services. The group is composed of: ◆ ten main subsidiaries and participating interests specialised in airport management activities: TAV Istanbul, TAV Esenboga, TAV Izmir, TAV Gazipasa, TAV Milas Bodrum, and TAV Macedonia which are 100%-held, TAV Georgia, which is 80%-held, TAV Medinah, which is 33.3%-owned; TAV Tunisia, which is 67%-owned and MZLZ in Croatia, in which the Group holds an indirect 15% stake, ◆ three main subsidiaries providing services: ATU, which specialises in duty free and is 50%-owned, BTA, which specialises in catering and is wholly-owned, and Havas, a ground-handling services company which is wholly-owned, ◆ three wholly-owned specialised service companies: TAV O&M, which notably manages airport lounges, TAV IT, which handles the airports’ information systems, and TAV Security, which provides security services.

NOTE 2 SIGNIFICANT EVENTS

2.1

Reinforcement of Groupe ADP in the capital of TAV Airports

Aéroports de Paris SA, mother company of Groupe ADP, though its subsidiary Tank ÖWA alpha GmbH, entered into a share purchase agreement, signed on 9 June 2017, with Akfen Holding A.Ş. (“Akfen Holding”) for the acquisition of Akfen Holding’s whole stake in TAV Havalimanlari Holding A.Ş. (“TAV Havalimanlari Holding” or “TAV Airports”). With this transaction, Groupe ADP acquired an additional 8.12% stake in TAV Airports, for an amount of $160 million. As the suspensive conditions have been lifted on 7 July 2017, Groupe ADP now holds 46.12% of the share capital of TAV Airports. Groupe ADP has been a 38% shareholder of TAV Airports since 2012 and accounted its investment under the equity method. This additional acquisition of TAV Airports’ shares reinforces the involvement of Groupe ADP in TAV Airports and allows it to exercise de facto control. Indeed, in addition to the fact that this entity is held by a highly diffuse shareholding, this control is justified by the signature of a shareholder agreement with the main minority shareholders, which gives the Group the capacity to take relevant unilateral decisions for TAV Airports. Consequently, as from 7 July 2017, TAV Airports is fully consolidated in the accounts of Groupe ADP. ◆ TAV Airports is a leading airport operator in Turkey. It operates 17 airports and manages directly 16 airports worldwide: Istanbul

20

In accordance with IFRS 3 “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 €63 million on income statement, as detailed in the following table:

(in millions of euros) Fair value of TAV Airports shares at 38% - Market value on 7 July 2017 Value of shares accounted for by the equity method of TAV Airports as at 7 July 2017

A B C

647 573

Conversion reserve

(11)

Capital gain recognized related to the sale of 38% of TAV Airports 1

(A-B-C)

63

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

169

AÉROPORTS DE PARIS  REGISTRATION DOCUMENT 2017