Universal Registration Document 2024

6 FINANCIAL INFORMATION

GROUPE ADP CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2024

9.5.3 Analysis of risks related to financial instruments INTEREST RATE RISKS

In addition to its available cash flow, the Group resorts to debt to finance its investment program. The Group's exposure to interest rate risk is essentially a result from its debt, and to a lesser extent its portfolio of rates derivatives. The risk rate relating to the debt is managed by modulating the respective proportions of fixed rates and variable rates in line with market developments. The management of this risk depends on the implementation or cancellation of interest rate operations (swaps). The Group's policy consists of managing its interest charge by using a combination of fixed rate and variable rate loans. The Group's policy is that 50% to 100% of its debt should be at fixed rates. In line with this objective, the Group puts in place interest rate swaps through which it exchanges, at specific intervals, the difference between the amount of interest at fixed rates and the amount of interest at variable rates, calculated on a nominal loan amount agreed between the parties. These swaps are assigned to loan hedging.

The Group enters into interest rates swaps where the critical terms match exactly with the terms of the hedged item. Therefore, the hedging relationship is qualified as 100% effective. If changes in the circumstances affect the terms of the hedged item such that the critical terms no longer match exactly with the critical terms of the hedging instrument, the Group uses the hypothetical derivative method to assess the amount of ineffectiveness. Hedge ineffectiveness may occur due to: u the value adjustment on the interest rate swaps which is not matched by the hedged item; and u differences in critical terms between the interest rate swaps and the loans hedged.

The breakdown of borrowings and debt at fixed and variable rate is as follows:

As at 31 Dec. 2024

As at 31 Dec. 2023

Before hedging

After hedging

Before hedging

After hedging

%

%

(in millions of euros)

Fixed rate

8,698 1,445

9,152

90 % 10 %

8,428 1,394

9,001

92 %

Variable rate

991

821

8 %

Borrowings and debt (excluding derivatives)

10,142

10,143

100 %

9,822

9,822

100 %

As of 31 December 2024, the Group holds rate and exchange based derivative financial instruments (interest rate swaps), with a €47 million fair value, appearing on the assets under other current financial assets, and nil value appearing on the liabilities under borrowings and debt. The notional amounts of fair value hedging derivatives may be analysed as follows:

Maturity between 1 & 5 years

Maturity > 5 years

As at 31 Dec. 2024

Maturity < 1 year

Fair value

(in millions of euros)

Derivatives classified as cash flow hedges

13 13

88 88

353 353

454 454

47 47

TOTAL

The Group is exposed to interest rate fluctuations on its variable rate debt. To hedge this risk, it enters into floating-rate lender- fixed-rate borrower swaps backed by its floating-rate financing. The hedging relationships are designated as "cash flow hedges". As of 31 December 2024, these hedging relationships are carried by the following entities: TAV Airports and AIG.

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