Aéroports de Paris - 2019 Universal registration document
RISK AND MANAGEMENT 03
RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM
The Group’s decision process in terms of investments is based on two internal committees within Aéroports de Paris, relating to the Group’s investments, chaired by the Chairman and CEO: ◆ the Strategic Investments Committee (CSI) examines and approves the different investment strategies by business sector. Following a defined annual programme, it evaluates the main medium- and long-term sectoral policies by regularly reviewing needs, risks and opportunities. It carries out a regular review of priorities and validates the multi- annual investment programme for each segment. Such an exercise ensures that each activity’s strategic directions are coordinated with the associated schemes and plans and the multi-annual investment programme; ◆ the Group Investment Committee, which validates the tangible, intangible and financial investment and divestment projects above certain thresholds or according to certain criteria (the golden rules), completed by Aéroports de Paris and the subsidiaries that it controls. Within these same entities, local investment committees validate those investments that do not come under the scope of the Group Investment Committee. Likewise, according to the thresholds in force, each investment project is examined by the Board of Directors of the subsidiary concerned, before examination by the Board of Directors of Aéroports de Paris. These arrangements are implemented while fulfilling obligations to consult staff representative bodies. Preparation of financial statements and consolidation FRAMEWORKS All accounting processes are the subject of specific procedures, follow- ups, rules of validation, authorisation and accounting defined and stated by the Corporate Accounts Division (particularly for sales, purchasing, management of assets and cash flow, etc.). ACCOUNT CLOSURES, CONSOLIDATION AND MANAGEMENT REPORTS The closure process of corporate accounts and consolidated financial accounts is based on a detailed calendar, which has been shared with all consolidated companies so as to ensure that deadlines are met and that the preparation of financial statements is coordinated. The consolidation of the Group’s accounts is carried out twice a year. The Statutory Auditors carry out a limited review of the half-yearly accounts and an audit of the annual accounts. The statements for the months of May and October are reviewed within the framework of these missions. In addition, managers of the Group’s entities 1 sign an engagement letter every month to confirm the correctness of the accounting information they communicate relating to their area of responsibility. Budget and reporting BUDGET (OPEX/CAPEX) AND ROLLING FORECAST (OPEX) In August every year, the Finance, Management & Strategy Division prepares and sends all financial directors and managers in the finance, management and strategy area: ◆ a framework note focusing solely on Aéroports de Paris SA and including information aimed at guiding the re-forecasting of investments for the current year and the Capex budget for the year to come. It also presents specific issues for attention and the particular features of the relevant budgetary campaign;
◆ an advance financial framework note for Groupe ADP for the next year, separating out Aéroports de Paris SA and the subsidiaries (“International and airport development” subsidiaries, commercial subsidiaries, real estate subsidiaries and Hub One). The rolling forecast (review of forecasts) is applied to Groupe ADP’s income statement, with each of the consolidated entities reporting its latest forecasts to the Finance, Management & Strategy Division. By allowing a monthly update of the exit point forecast at 31 December according to the latest available information, the rolling forecast strengthens the reliability of the financial forecasts and improves the Group’s financial management. Investments by Aéroports de Paris SA are subject to two annual reviews. REPORTING COMEX ANALYSIS REPORT Each month, except for the end of the closing periods in January and July, the Finance, Management & Strategy Division produces an operating report for the Executive Committee. It incorporates the rolling forecast and its commentary is on the analysis reports drawn up by the entities. Financial communication As an issuer of regulated information, the Finance, Management and Strategy Division exerts control over the development and publication of all communications of a financial nature. Alongside the Legal Affairs and Insurance Division, it is responsible for authorising any type of memo or press release containing “sensitive information”, that is, any information of a financial or legal nature, or with financial or legal implications, and/or information likely to influence Aéroports de Paris SA share price. A procedure concerning financial communication of Groupe ADP has been designed to guarantee the accuracy of information of a financial nature and to ensure that the Group meets all its associated requirements. An annual calendar of the Group’s main periodical commitments in terms of accounting, financial and shareholder memos, was created by the Legal Affairs and Insurance Division and shared internally. In addition, an annual schedule of periodic regulated financial publications is established by the Finance, Management and Strategy Division, and published to the AMF and available on Groupe ADP’s website. Groupe ADP disseminates its regulated information via a system approved by the AMF. Its main financial communication channel is its website (www.groupeadp.fr), along with several social media channels (Twitter, Facebook, etc.) in accordance with the AMF recommendation as published in the guide on permanent information and management of protected information 2 . Executive Corporate Officers have received a charter on the use of the current financial communication procedure. The harmonisation of the financial communication practices of TAV Airports with those of Groupe ADP is continuing. IT system The IT Systems Division provides the relevant divisions of the Finance, Strategy and Administrative Division with: ◆ technical expertise on accounting and financial information systems (functional expertise being provided by so-called “business area” divisions) along with their administration and support; ◆ the implementation of IT projects in this area. It translates the Aéroports de Paris analytical management framework, managed by the Finance, Management and Strategy Division, into the management plans. These internal control mechanisms and initiatives are based on an IT system centred on SAP software packages for general accounting and analysis, SAP BFC for consolidation and reporting, and SAP BO for reporting performance indicators.
1 This covers the divisions of Aéroports de Paris SA and the companies consolidated by the Group. 2 Guide on permanent information and management of protected information DOC-2016-08.
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AÉROPORTS DE PARIS ® UNIVERSAL REGISTRATION DOCUMENT 2019
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