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

At the end of the period, other non-current liabilities were as follows:

As at Dec 31, 2019

As at Dec 31, 2018

(in millions of euros)

Concession rent payable > 1 year

643

594

Investment grants

54 22 77

48 53 83

Debt related to the minority put option

Deferred income

Other TOTAL

2

2

798

780

The debt related to the minority put option concerns Ville Aéroportuaire Immobilier 1 which option exercise date will be at the end of 2023. Deferred income over a year mainly concerning Paris SA Airport and consists in: ◆ the rent to Air France of terminal T2G, i.e. €19 million as of 31 December 2019 (€22 million as of 31 December 2018); ◆ leasing construction of SCI Aéroville, i.e. €28 million as of 31 December 2019 (€29 million as of 31 December 2018).

Concession rent payable mainly relate to TAV Airports for TAV Milas Bodrum and TAV Ege which concession rent are fixed as defined in the concession agreements and have been recognized as counterparty for the airport operating right (see note 6.1.1). As at 31 December 2019, non- current concession rent payable amounts to €291 million for Milas Bodrum and €273 million for Ege (vs. €269 million and €259 million respectively as at 31 December 2018).

NOTE 9 FINANCING

9.1

Management of financial risk

environment, within which all personnel have a good understanding of their roles and obligations. The Group’s audit committee has responsibility for carrying out an examination, together with senior management, of the main risks faced by the Group, and examining the risk control policy in all areas. In addition, the Internal Audit Department carries out reviews of the risk management controls and procedures, the results of which are communicated to the audit committee. CUSTOMERS AND OTHER DEBTORS The Group policy is to place under legal supervision and to check the financial health of all its customers (either new or not). Except for the contracts signed with the State and its fully owned subsidiaries, leases agreed between the Group and its customers include warranty clauses (deposit cheque, bank guarantee, first demand bank guarantee, etc.). Customer balances are constantly monitored. Consequently, the Group considers that the credit risk is not material given the guarantees received and the monitoring system for trade receivables. The Group exposure to credit risk is principally affected by the individual characteristics of each customer. Around 18% of the Group revenue is derived from services sold to its main customer Air France. Quantitative details regarding trade receivables and anteriority or current receivables are set out in note 4.4. According to IFRS 9, the Group determines a level of write-down on accounts receivable from clients that represents its estimate of expected credit losses. This write-down model relies on: ◆ the type of account receivable (homogeneous and material accounts receivable); ◆ the probability of client default; and ◆ the rate of irrecoverable loss in case of default.

9.1.1 Introduction In addition to derivative instruments, the Group’s main financial liabilities consist of bank loans and overdrafts, bonds, rental financing debts, supplier debts and rental contracts. The main objective of these financial liabilities is to finance the Group’s operating activities. The Group has other financial assets such as customer debts, cash and short-term deposits that are generated directly by its activities. The Group also holds derivative instruments, mainly interest rate swaps. The objective of these instruments is the management of interest rate risks linked to the financing of the Group. The main risks linked to the Group’s financial instruments are: ◆ credit risk; This note presents information on the exposure of the Group to each of the above risks, its objectives, its risk measurement and management policy and procedures, and its capital management. Quantitative information appears elsewhere within the consolidated financial statements. It is the task of the risk and audit committee to define and supervise the scope of the Group’s risk management. The objective of the Group’s risk management policy is to identify and analyse the risks that the Group must face, define the limits within which the risks should fall and the controls to be implemented, manage the risks and ensure compliance with the limits defined. The risk management policy and systems are regularly reviewed in order to take account of changes in market conditions and the Group’s activities. Through its training and management rules and procedures, the Group aims to develop a rigorous and constructive control ◆ liquidity risk; ◆ market risk.

18

231

AÉROPORTS DE PARIS ® UNIVERSAL REGISTRATION DOCUMENT 2019