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

INVESTMENTS AND DERIVATIVE INSTRUMENTS With regard to credit risk relating to the Group’s other financial assets (cash, cash equivalents, financial assets available for sale and certain derivative instruments), Aéroports de Paris SA invests its surplus cash via short term Euro money market funds. The counterpart risk linked to these investments is considered to be marginal. Concerning TAV Airports and AIG, credit risk linked to liquid funds is limited considering that counterparties are high credit rated banks. For derivative instruments, the Group’s exposure is linked to possible default on the part of third parties involved, mainly first rank financial institutions. The maximum exposure is equal to the book value of these instruments. The Group considered 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 15). 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 this risk marginal. GUARANTEES

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 note 9.5.3. 9.2 Capital management The gearing ratio increased from 85% end 2018 to 87% in 31 December 2019. The increase of the gearing ratio is driven by the increase of the net debt, mainly due to the impact of the Group new acquisitions. 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. On this date, Employees currently hold 1.67% of ordinary shares. Neither the parent company nor its subsidiaries are subject to any specific requirements under external regulations.

9.3 Net financial income

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.

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

The analysis of net financial income is as follows respectively for 2019 and 2018:

Financial income 2019

Financial income Financial expenses

(in millions of euros)

Gross interest expenses on debt

- -

(206)

(206)

Interest expenses linked to lease obligations

(5)

(5)

Net income (expense) on derivatives

37 37

(14)

23

Cost of gross debt

(225)

(188)

Income from cash and cash equivalents

9

(2)

7

Cost of net debt

46 20 32

(227)

(181)

Income from non-consolidated investments

-

20 (1) (9)

Net foreign exchange gains (losses)

(33)

Impairment and provisions

-

(9)

Other

1

(36) (78)

(35) (25)

Other financial income and expenses

53 99

Net financial income

(305)

(206)

232

AÉROPORTS DE PARIS ® UNIVERSAL REGISTRATION DOCUMENT 2019