Aéroports de Paris - 2019 Universal registration document
FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND CONSOLIDATED FINANCIAL STATEMENTS 18 GROUPE ADP CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2019
In terms of the impact on the income statement as of 31 December 2019 the application of IFRS 16 led to: ◆ Group EBITDA Improvement of €14 million (reclassification of rents included in “external services and charges”); ◆ the recording of a deprecation on rights of use of €11 million; and ◆ financial expenses for €5 million. The new lease contracts restated between 1 January and 31 December 2019 had the effect of increasing investments by € 57 million and increasing financial liabilities by the same amount. As of January 1, 2019 IFRS 16 restatement entries do not appear in the cash flow statement as they have no impact on cash and cash equivalents. With regard to the repayment of the principal and interest of the recorded lease liability, cash flow is classified on financing activities on a separate line. Rent expenses for low value assets and contract with a term less than or equal to one year not restated by the Group in accordance with the simplification measures of the standard amount to approximately €5 million as of 31 December 2019.
The Group has analyzed all identified lease contracts and the impacts of IFRS 16 are relatively limited. As a consequence, the Group decided to apply IFRS 16 according to the “modified” retrospective method, i.e. by recognizing the cumulative effect of the initial application of the standard at the date of initial application (1 January 2019). The impact of the application of this standard as described below relates to lease contracts for which the Group is a lessee, as the effects of the application of the standard are limited for leases in which the Group is a lessor. Restated lease contracts are mainly related to real state and vehicles. The impacts of the first application of IFRS 16 on the opening balance sheet are: ◆ an increase of €51 million in property, plant and equipment (mainly because of the recognition of a right of use) which corresponds to less than 1% of the Group’s non-current assets as of 31 December 2019) of which the reclassification of pre-paid rents into rights of use amounts of €15 million; ◆ and the recognition of a lease liability of €36 million (representing less than 1% of the Group’s financial debt on 31 December 2019).
The reconciliation of lease obligations recognized at the date of transition to off-balance sheet commitments as at 31 December 2018 breaks down as follows:
(in millions of euros) Commitments given related to operating leases as at 31 December 2018
74
Effects linked to delay in the date of delivery of the assets
(35)
Other effects (including actualization effect)
(3) 36
Lease obligations as at 1 January 2019 after first application of IFRS 16
The required disclosures by the IFRS 16 standard are mentioned in more detail in Note 6.2.1. Change in disclosure of share of profit or loss in associates and joint ventures.
1.4 Change in disclosure of share of profit or loss in associates and joint ventures Until 31 December 2018, the Group disclosed the share of profit or loss in associates and joint ventures on two separate lines “Share of profit or loss in associates and joint ventures from operating activities” and “Share of profit or loss in associates and joint ventures from non-operating activities”.
For non-materiality reasons of indictors “Share of profit or loss in associate and joint ventures from non-operating activities”, the Group discloses since 1 January 2019 the share of profit or loss in associates and joint ventures on one single line included within the operating income.
NOTE 2 SIGNIFICANT EVENTS 2.1
Takeover of SDA, SDA Croatia and Relay@ADP
“Société de Distribution Aéroportuaire” (SDA) and “Relay@ADP” companies were jointly controlled up to April 2019. Groupe ADP decided to take control of these companies in order to control the entire value chain. Groupe ADP obtained control through a statutory amendment that grants the final decision to Groupe ADP in case of deadlock between the two shareholders. As a consequence, Groupe ADP has not changed its holding percentage in these entities (percentage being 50%), however
the Group now holds an executory call option to buy shares from co- shareholder in case of deadlock. In accordance with IFRS 3 ‘Business combinations’, shares previously held were revaluated at fair value through the income statement on the date the Group took control (11 April 2019). This revaluation has an impact of €43 million on income statement as of 31 December 2019, as detailed in the following table:
196
AÉROPORTS DE PARIS ® UNIVERSAL REGISTRATION DOCUMENT 2019
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