Universal Registration Document 2024

FINANCIAL INFORMATION 6

GROUPE ADP CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2024

6.4 Impairment of property, plant and equipment, intangible assets and investment property

Property, plant and equipment, intangible assets and investment property are tested for impairment when the Group identifies impairment indicators. An impairment test is also performed for previously impaired investments. Level of impairment testing – When the recoverable amount of an intangible asset or goodwill taken individually cannot be determined, the Group determines the recoverable amount of the cash-generating unit (or group of cash-generating units) to which the asset belongs. Thus, for example, for the rights to operate an airport, the cash-generating unit tested corresponds to the assets and liabilities of the fully consolidated concession. As regards the Parisian assets, which include in our opinion the three platforms Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget, these assets constitute, a single cash generating unit as long as there is a strong interrelationship between the activities carried out within the three Paris airports. Frequency of impairment testing – For intangible assets with an indefinite useful life and goodwill, a test is performed at least once a year and whenever an indication of impairment appears. For land that is assumed non depreciable, it is tested for impairment if there is an indication of impairment. For definite lived property, plant and equipment and intangible assets, an impairment test is performed at the level of the CGU when the Group identifies one or more indications of impairment. This is the case when significant changes with a negative effect on the entity have occurred during the period, or are expected to occur in the near future. The criteria used to assess indications of impairment may include, in particular, a lower than expected performance, a decrease in traffic, a significant unfavorable change in market data or the regulatory environment, or obsolescence or material deterioration not provided for in the depreciation plan.

Estimation and recognition of impairment loss – In the case where the recoverable amount is less than net book value, an impairment loss is recognised for the difference between these two amounts. The recoverable value is estimated by discounting expected cash flows before debt service at the weighted average cost of capital. To determine the cash flows, the Group reviews the financial trajectories taking into account all known elements at the date. Regarding the discount rate, data used by Groupe ADP is based on averages for the past 3 months, for the risk-free rate and the market premium. The book value corresponds to the net assets in the consolidated view, after allocation of the acquisition price. The recognition of an impairment loss on definite lived property, plant and equipment or intangible assets leads to a revision of the depreciation/amortisation period and schedule of the assets concerned. These may be reversed subsequently if the recoverable amount becomes higher than the net book value. An impairment loss can only be reversed in the event of a change in the estimates used to determine the recoverable value since the recognition of the impairment loss. Also, a reversal of depreciation is not recognised simply due to the effect of discounting estimated cash flows or the passage of time, even if the recoverable value of the asset becomes greater than its book value. The value of the asset after reversal of the impairment loss is capped at the carrying amount that would have been determined net of depreciation if no impairment loss had been recognised in prior years. On the other hand, impairment losses on goodwill are irreversible.

Impairment losses and reversals can be analysed as follows:

As at 31 Dec. 2024 As at 31 Dec. 2023

(in millions of euros)

Impairment losses on goodwill

–

(1)

Impairment losses net of reversals on intangible assets

102 (11)

51

Impairment losses, net of reversals on property, plant and equipment IMPAIRMENT LOSSES NET OF REVERSALS OVER THE PERIOD

5

91

55

As at 31 Dec. 2024 As at 31 Dec. 2023

(in millions of euros)

International and Airport Developments

103 (12)

50

Aviation

4 4

Retail and Services

1

Real Estate

–

(2) (1) 55

Other Activities

(1) 91

IMPAIRMENT LOSSES NET OF REVERSALS OVER THE PERIOD

597

UNIVERSAL REGISTRATION DOCUMENT 2024 w AÉROPORTS DE PARIS