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

9.2 Capital management The Group’s policy is to maintain a solid capital basis in order to preserve the confidence of investors, creditors and the market and to support the future growth of its businesses. The gearing ratio increased from 63% in 2016 to 70% in 2017. The Group did not alter its capital management policy over the course of the year. The Group occasionally buys its own shares on the open market to ensure the liquidity of its shares. The frequency of such purchases depends on market prices. The Board of Directors monitors the level of dividends paid to holders of ordinary shares. Employees currently hold 1.74% of ordinary shares. Neither the parent company nor its subsidiaries are subject to any specific requirements under external regulations.

GUARANTEES Guarantees are accorded by the Group to the correct execution of international contracts. In particular, ADP International and TAV Airports gave commitments (share pledges, receivable pledge, pledge over bank accounts) in relation to bank loans that are intended to finance the construction and operation of certain concessions (see note 14). 9.1.2 Market risk Market risk corresponds to the risk that market price variations, such as exchange rates, interest rates and equity instrument prices, may affect the Group’s results or the value of financial instruments held. The objective of the management of market risk is to manage and control exposure to market risk within acceptable limits, while optimising the profitability/ risk ratio. Analyses of sensitivity to rate risk and to exchange risk are presented in paragraph 9.5.3.

9.3 Net financial income

Net financial income include interest payable on borrowings, calculated using the effective interest rate method, interest receivable on investments, interests on the employee benefit liability relating to defined benefit plans and gains and losses on foreign exchange and on hedging instruments which are recognized in the income statement. As such, it includes the realized and unrealized result on foreign exchange and interest rate derivatives carried by Groupe ADP, whether or not they are documented in hedge accounting. Net financial income also include unwinding of discount on concession rent payable.

The analysis of net financial income is as follows respectively for 2017 and 2016:

Financial income Financial expenses Financial income 2017

(in millions of euros)

Gross interest expenses on debt Net income (expense) on derivatives

-

(126)

(126)

15 15

(15)

-

Cost of gross debt

(141)

(126)

Income from cash and cash equivalents

9

(1)

8

Cost of net debt

24

(142)

(118)

Income from non-consolidated investments

2

-

2

Net foreign exchange gains (losses)

14

(40) (17) (27) (84)

(26) (17) (20) (61) (179)

Impairment and provisions

-

Other

7

Other financial income and expenses

23 47

20

Net financial income

(226)

Financial income Financial expenses Financial income 2016

(in millions of euros)

Gross interest expenses on debt Net income (expense) on derivatives

-

(113) (10) (123)

(113)

16 16

6

Cost of gross debt

(107)

Income from cash and cash equivalents

2

-

2

Cost of net debt

18

(123)

(105)

Income from non-consolidated investments

1

-

1

Net foreign exchange gains (losses)

5

(7) (8) (3)

(2) (7) (2)

Impairment and provisions

1 1

Other

Other financial income and expenses

8

(18)

(10) (115)

Net financial income

26

(141)

201

AÉROPORTS DE PARIS  REGISTRATION DOCUMENT 2017