ADP_REGISTRATION_DOCUMENT_2017

FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND CONSOLIDATED FINANCIAL STATEMENTS 20 GROUPE ADP CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2017

The flows explaining the changes in provision are as follows:

Present value of employee benefit obligation

Fair value of plan assets Net actuarial liability

(in millions of euros)

As at 1 Jan. 2016

444

(2)

442

Service costs for the period

21

- - -

21

Interest costs

9

9

Actuarial gain/(loss) in the period

12

12

Cash flows:  Payments to beneficiaries

(16)

-

(16)

 Contributions paid

- -

(3)

(3)

 Payments received from third parties

4

4

As at 31 Dec. 2016

470

(1)

469

Change in consolidation scope

18

- - - - - -

18

Other changes

(2)

(2)

Service costs for the period

25

25

Interest costs

8

8

Actuarial gain/(loss) in the period

(15) (15)

(15) (15)

Reduction/curtailment

Cash flows:  Payments to beneficiaries

(21)

-

(21)

 Contributions paid

- -

(3)

(3)

 Payments received from third parties

4

4

AS AT 31 DEC. 2017

468

-

468

5.2.3 Assumptions and sensitivity analysis The main assumptions used are as follows:

France

Turkey

As at 31 Dec. 2017

Discount rate/Expected rate of return on plan assets

1.50% 1.75%

4.19%

Inflation rate

6% 6%

Salary escalation rate (inflation included) Future increase in health care expenses

1.75%-3.55%

2.50%

8.19%

Average retirement age

62-65 years

51-52 years

The rate used for discounting the commitment is representative of the rate of return for first-class bonds in euros with duration comparable to those of the commitments involved (weighted average duration of 12.0 years).

Mortality assumptions used are those defined by: ◆ mortality tables of men/women INSEE prospective 2007-2060 on the service period of beneficiaries; and ◆ generational tables of men/women TGH05-TGF-05 on the annuity phase.

The table below shows the sensitivity of the commitment to the main actuarial assumptions:

Impact on present value of obligation at 31/12/2017

Impact on present value of obligation at 31/12/2017

High assumption

Low assumption

(in millions of euros)

Drift in medical costs

-1.00%

(5)

1.00%

5

Discount rate/Expected rate of return on plan assets

-0.50% -1 year -0.50%

32

0.50% +1 year 0.50%

(29)

Mortality rate

4

(4) 20

Salary escalation rate (inflation included)

(19)

Based on the employee benefit commitments for end-of-career indemnities as at 31 December 2017, a decrease of 100 Bp of the employer contribution rate would have an equity impact of €2.3 million.

188

AÉROPORTS DE PARIS  REGISTRATION DOCUMENT 2017