Aéroports de Paris - 2019 Universal registration document

OPERATIONS WITH RELATED PARTIES

FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2019

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

ADDITIONAL INFORMATION ON THE SHARE CAPITAL AND PROVISIONS OF THE ARTICLES OF ASSOCIATION

MATERIAL CONTRACTS

6.3 Investment property

Investment properties are real estate (land, building, building complex or part of one of these elements) whether held in full ownership or through a ground lease contract and to be leased to third parties and / or in the prospect of a capital gain. Investment properties are defined as opposed to buildings occupied by Aéroports de Paris for its own needs (head offices, administrative buildings or operating buildings.) Those buildings are valued in the balance sheet under the item Tangible fixed assets. Vacant buildings that are not intended to be used by Aéroports de Paris for its own needs are treated as investment properties. If more than half of a building areas meet the definition of investment properties, then the whole building is considered as an investment property. Investment properties appear on a specific line of the balance sheet and, as allowed by IAS 40, are valued using the historical cost method, that is to say their cost diminished by the accumulated depreciation and cumulative impairment losses. Such buildings are depreciated on a straight-line basis over their use duration ranging from 20 to 50 years. Investment properties fair value, which is indicated in note 6.3.2, is annually assessed by independent real estate appraisal firms for almost 100% of its total value (excluding land reserves): ◆ all buildings that are not used by Aéroports de Paris for its own needs have been valued on the Paris-Orly, Paris-Charles de Gaulle and Paris-Le-Bourget platforms; ◆ ground leases are valued by external appraisers except those located on General Aviation Aerodromes that were internally appraised by rents capitalization; ◆ development projects (through direct investment or through ground lease) are externally valued as soon as a pre-leasing contract or a firm

contract with a building contractor is signed even under suspensive conditions. The valuation of the projects land is maintained in the land reserves until the asset is delivered. A discount rate is applied in order to assess the risk of not obtaining the building permit during the appeal period. If the project is held in full property, the retained method is to assess the property as delivered and rented, then to subtract all the unpaid costs (residual work, marketing, free rents) from this value; ◆ the valuation of land reserves is internally carried out and results from a differentiation of plots by destination into five categories according to their mutability period (immediately available reserves, under aeronautical constraints, evolution of PLU, mutable in the short term after demolition / depollution and under commercial and technical constraints). It results from the product of their theoretical market value per square meter by the area in square meters available or from capacity studies when they exist, to which a discount is applied corresponding to the regulatory and environmental risk likely to impact the value of the property portfolio ADP. The discount rate applied to cash flows corresponds to the cost of capital of Aéroports de Paris SA plus a risk premium in order to take into account the cost of carrying the land before it is used.Analysis of investment property; ◆ lease contracts (where Groupe ADP is a lessor) are analysed according to IFRS 16 “Leases” in order to determine whether they are operating leases or finance leases and taking into account separately the building and land components. Under finance lease agreements, the asset sold is then written off from the balance sheet and a financial receivable is recorded for the present value of fixed payments. Result of disposal of assets is recognized in current operating income.

18

6.3.1 Analysis of investment property Investment property is detailed as follows:

Fixed assets in progress, related advances & prepayments

Land, improvements of land and substructure

Total

Buildings

(in millions of euros)

Gross value

118

627

84

829

Accumulated amortisation & depreciation

(58)

(262)

-

(320)

Carrying amount as at Jan 1, 2019

60

365

84

509

Purchases and change in advances and prepayments

-

14

14

28

Depreciation and Amortisation

(2)

(19)

-

(21) (6) 510 858

Transfers to and from other headings

1

47

(54)

Carrying amount as at as at 31 December 2019

59 119

407 695

44 44

Gross value

Accumulated amortisation & depreciation

(60)

(288)

-

(348)

225

AÉROPORTS DE PARIS ® UNIVERSAL REGISTRATION DOCUMENT 2019