Translation provided solely for information purposes

Aéroports de Paris SA Interim financial report as of 30 June 2023

This interim financial report was drawn up in accordance with III. of article L.451-1-2 of the French Monetary and Financial Code ("Code Monétaire et financier") and 222-4 of the AMF General Regulation ("Autorité des marchés financiers").

Aéroports de Paris Public limited company (Société Anonyme) with share capital of €296,881,806 Registered office: 1, rue de France 93290 Tremblay-en-France R.C.S. Bobigny B 552 016 628

1	STATEMENT OF THE INTERIM FINANCIAL REPORT3
2	INTERIM REPORT ON ACTIVITY 4
3	STATUTORY AUDITOR'S REVIEW REPORT ON THE HALF-YEAR FINANCIAL INFORMATION 27
4	FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND 2023 FINANCIAL STATEMENTS 29

1 STATEMENT OF THE OFFICERS IN CHARGE OF THE INTERIM FINANCIAL REPORT

1.1 Officers in charge of the interim financial report

Augustin de Romanet, Chairman and Chief Executive Officer.

Philippe Pascal, Executive Director, Finance, Strategy and Administration

1.2 Statement

We certify that, to the best of our knowledge, the condensed consolidated interim financial statements have been drawn up in accordance with the relevant accounting standards and give a true and fair view of the assets and liabilities, financial position and revenue of the company and of all entities included within the consolidation scope, and that the interim report on activity presents a faithful picture of the significant events that occurred during the first six months of the financial year, their impact on the condensed consolidated interim financial statements and the principal transactions between related parties as well as a description of the principal risks and principal uncertainties for the remaining six months of the financial year.

INTERIM REPORT ON ACTIVITY

2 Significant events of the 1st half of 2023

2 INTERIM REPORT ON ACTIVITY

2.1 Significant events of the 1st half of 2023

Contemplated merger between GIL & GAL

Following the announcement of the agreement between Groupe ADP and GMR Enterprises to form an airport holding company listed on Indian Stock Exchange by the first half of 2024 (see press release of March 19th, 2023), some preparatory steps to the contemplated merger have been realized during 1st semester 2023:

Groupe ADP subscribed to 330,817 bonds of Foreign Currency Convertible Bonds (FCCBs), issued by GMR Airports Infrastructure Ltd (GIL) and allocated on 24th March 2023, for a total of 331 million euros.
Groupe ADP also proceeded to the early settlement of earn-outs, for a total of 62 million euros. Initial impact of this payment, negative on group's net debt in the 1st half of 2023 will be gradually neutralized by the extinction of the liabilities associated with these earnouts over the period until the completion of the contemplated merger.
On 12 June 2023, BSE Limited and National Stock Exchange of India Limited, the Indian financial markets where GIL is currently listed, issued a no-objection certificate to the merger application filed by GIL on 12 April 2023;
On 12 April 2023 the merger application has been submitted for approval to the Securities and Exchange Board of India (SEBI), whose clearance is expected in the coming weeks;
The merger application will then be filed for approval with the National Company Law Tribunal (NCLT).

As previously announced, the NCLT's final decision, following approval by the shareholders and creditors of both companies, is expected in the 1stsemester 2024, and would lead to the completion of the merger transaction.

Renewal of Ankara Airport concession agreement

Following the success of TAV Airports in the auction for the renewal of Ankara Airport concession agreement for 2025-2050 period (see press release of December 20th, 2022), TAV Airports signed the 1st February 2023 the concession agreement with the Turkish Sate Airports Authority (DHMI). As such, TAV Airports paid on 27 April 2023, the sum of 119 million euros to DHMI, representing the upfront payment of 25% of the concession rent.

Works on expanding the capacities of the airport have been initiated during the 2nd quarter 2023. As a reminder, the necessary investments are estimated at around 300 million euros, of which two thirds will be conducted between 2023 and 2026 and the remaining third to be engaged by 2038.

Ranking results of Skytrax 2023

In 2023, 5 airports of the group are among the 100 best airports in the world in terms of service quality according to the Skytrax World Airport Awards.

Paris-Charles de Gaulle retains its position as the best airport in Europe and is now the 5th best airport in the world (compared to 6th in 2022). Paris-Orly continues its progression, ranking 39th in the world (against 46th in 2022 and 76th in 2021).

Abroad, 3 other airports in the network are among the 100 best airports: Indira Gandhi in Delhi in 36th position (up +1 rank), Rajiv Gandhi in Hyderabad in 65th position (down - 2 ranks) and Medina in 52nd position (up + 6 ranks).

Introduction of a waiting time barometer for borders controls in Paris

Groupe ADP has initiated, in collaboration with the French Border Police, the implementation of a barometer of waiting time at borders controls in our Parisian airports (see press release of March 29th, 2023).

It report monthly the percentage of passengers who waited less than 10 minutes in Paris-CDG and Paris-Orly; the number of events resulting in waiting times of more than 30 minutes and specify the reason for the most disruptive events; and lastly, give details by terminal on the percentage of departing and arriving passengers who waited by 10-minute intervals. This tool enable to measure, report and steer improvements.

The data is extracted from sensors installed in the border controls areas of our Parisian airports. This initiative is part of a global action plan conducted alongside the French Border Police to reduce waiting times at borders controls (recruitment of contractual staff by this summer, reinforcement of PARAFE (Automated Rapid Crossing of External Borders...) and, as a result, improve the quality of service and contribute to the performance of the Parisian platforms.

Significant events of the 1st half of 2023

Regulated scope performance in 2022

As of 31 December 2022, the regulated ROCE, stood at 4.72%1, against -3.47% as of 31 December 2021. It corresponds to the ratio between the operating income of the regulated scope² less standard corporate tax and the regulated asset base and is used to assess the performance of the regulated scope as per Article L. 6325-1 of the Transportation Code.

The operating income of the regulated scope for 2022 was of 369 million euros, before tax against - 204 million euros in 2021.

The sum of the regulated asset base, corresponding to the net book value of tangible and intangible assets relating to the regulated scope and the working capital requirement was 5,800 million euros as of 31 December 2022 against 5,870 million euros as of 31 December 2021.

Launch of Abelia, Aéroports de Paris SA new employee shareholding scheme

Following the approval of the Annual General Meeting of Shareholders on May 16th, 2023, Aéroports de Paris launched its new employee shareholding operation on June 21st, 2023, the roll-out of which will be phased in 2023 and 2024. Entitled ABELIA, the transaction involves a maximum of 305,985 shares (or around 0.3% of the capital), corresponding to the 296,882 shares bought back from Royal Schiphol Group in December 2022 (see press release of December, 6th 2022) and 9,103 shares remaining from the employee shareholding plan implemented in 2016.

ABELIA is part of "2025 Pioneers" roadmap (see press release of February 16th, 2022 ) which provides for Aéroports de Paris to carry out at least one employee shareholding operation by 2025. It will be divided into two parts:

◆ A free allocation of shares of the company to employees of Aéroports de Paris SA which, depending on the choices made, may be up to a maximum of 16 shares per beneficiary.
◆ An offer to acquire shares of the company on preferential terms, reserved for employees who are members of the Group Savings Plan (PEG). This offer will be deployed in spring 2024 and will benefit employees who have been on the payroll for at least 3 months prior to the end of the subscription period.

This operation is part of the development of a new culture of value sharing, involving employees in the company's performance.

The financial impact of this transaction to be booked in 2023 and 2024 is estimated at around 27 million euros in ADP SA's personnel expenses, of which 4 million euros were booked at June 30th, 2023.

New salary measures from July 1st, 2023

To reward the involvement and commitment of Aéroports de Paris employees during this period of strong recovery in activity and major challenges ahead, the company has initiated new unilateral salary measures. They come on top of measures already taken or planned since July 2022.

From July 1st , 2023, these new measures provide for a 1.5% general increase in base salary for all Aéroports de Paris employees.

Project for TAV Airports to sell part of its stake in Medina airport

On June 22nd, 2023, the Board of Directors of TAV Airports approved the sale of 24% of the capital of Tibah Airports Development, the company operating Medina airport in Saudi Arabia, in which TAV Airports holds a total stake of 50% and which is accounted for under the equity method in the Group's financial statements.

Following this decision, these equity-accounted shares, together with the balance attributable to these shares of the shareholder loan granted to Tibah by TAV Airports, have been reclassified, as of June 30th, 2023, as assets held for sale within the definition of IFRS 53.

See Events since June 30th, 2023, on page 26 of this press release for the agreement signed on July 7th, 2023.

¹ Data for the regulated scope at the end of 2022 have been approved by the auditors on May 31st, 2023. Previously to this review, the regulated ROCE for 2022, as publish in section 1.1.3.1.1 of the 2022 Universal Registration Document, was estimated at 4.67%.

² Regulated scope as defined by the 1st article of the decree of September 16th, 2005, relating to fees for services rendered in airports.

³ IFRS 5 accounting standard "Non-current assets held for sale and discontinued operations" sets out the requirements for the classification, measurement and presentation of non-current assets held for sale. This standard is intended to prepare the reader of the financial statements for the future removal of the asset from the company's balance sheet, and for the impending disappearance of income and cash flow items.

2 INTERIM REPORT ON ACTIVITY

Significant events of the 1st half of 2023

Aéroports de Paris rating confirmed by S&P Global Ratings

On June 14th, 2023, Standard and Poor's reaffirmed its long-term A credit rating, with negative outlook, for Aéroports de Paris.

Deployment of complementary hospitality initiatives

In order to ensure the best possible fluidity and quality of service in its Parisian aiports, the group alongside its partners has deployed various measures, particularly for the 2023 summer season, with a view to:

◆ Strengthening passenger management capabilities at the border: installation of 17 additional PARAFE gates, enabling automated border crossing, and recruitment by the Border Police of 287 contract workers;
◆ Improving visibility and queue management: new organization of queues and deployment of additional workers to better support and guide passengers, especially to the queues dedicated to them;
◆ Improving real-time information: greater number of waiting time display screens, revised audio announcements, etc.
◆ Strengthening passenger services and care: WiFi reinforcement, water distribution in queues, etc.

JCDecaux and Groupe ADP launch the Extime JCDecaux Airport

As Extime Media has been operating since June 22nd, 2023, the two co-shareholders announced on July 18th, 2023 (see press release – available in French only), the launch of Extime JCDecaux Airport (previously JCDecaux Airport Paris), the new Extime JCDecaux Airport brand aims to become the new benchmark brand in the airport media world, by expanding internationally, with the deployment of its activities in Turkey from 2024 and in Jordan during 2025.

This announcement follows the Groupe ADP's choice, after a public consultation, of JCDecaux as co-shareholder in Extime Media to operate advertising activities at Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget airports until December 2034 (see press release of July 28th, 2022)

Groupe ADP chooses Lagardère Travel Retail as co-shareholder in the future joint venture Extime Travel Essentials Paris

Following the advertising and competitive bidding process launched by Groupe ADP for the Travel Essentials business (including books and press products, gifts and souvenirs, groceries and take-away snacks, and travel accessories) for the Paris-Charles de Gaulle and Paris-Orly airports, Lagardère Travel Retail was chosen to become the co-partner in Extime Travel Essentials Paris (see press release of July 24th, 2023 – available in French only)

Subject to the approval of the relevant competition authorities, Extime Travel Essentials Paris will operate over sixty sale points for a period of ten years starting February 1st , 2024, notably under the RELAY banner and in partnership with a large number of brands. The joint venture will be equally owned by the Groupe ADP (50%) and Lagardère Travel Retail (50%).

Support for low-carbon aviation and electric urban air mobility

On the occasion of the Paris Air Forum and the Paris Air Show which took place from June 19th to June 25th, 2023, Groupe ADP has announced the completion of several projects that are part of the active approach deployed by the group to support the decarbonization of the sector:

◆ Air Liquide and Groupe ADP announced on June 16th, 2023 (see press release) the creation of "Hydrogen Airport", engineering and consulting joint venture specializing in helping airports integrate hydrogen projects within their infrastructures. The governance team is in place and the joint venture has begun commercial activities.
◆ Groupe ADP and Volocopter, alongside the French Civil Aviation Authority (DGAC) and Paris Region, have confirmed, in a joint press release on June 20th, 2023 (see press release), that all safety, airspace integration, acceptability and passenger route conditions have been fulfilled at this stage in view of the launch of the first eVTOL (electric vertical take-off and landing) aircraft services over Paris Region skies for the 2024 Olympic and Paralympic Games.
◆ Groupe ADP has announced on June 21th, 2023 (see press release) having joined forces with six leaders in carbonfree regional aviation to accelerate the introduction of electric- and hydrogen-powered 2 to 100-seat aircraft on its airfields and at Paris-Le Bourget, Paris-Orly and Paris-CDG airports before 2030. These new aircraft are thus set to decarbonize flights around aerodromes, and to serve radial, regional and short-haul routes in Europe.

2 INTERIM REPORT ON ACTIVITY

Significant events of the 1st half of 2023

The Paris 2024 Olympic and Paralympic Games as a driver of innovation towards the airport of tomorrow

Ahead of the Paris 2024 Olympic and Paralympic Games, the group is conducting innovative projects at Paris airports with the aim of achieving greater operational efficiency, enhanced service quality and lower environmental impact:

◆ Gradual experimentation with a remote check-in service, offering greater freedom and mobility for travelers and smoother management of peaks in this activity by Parisian airports. A large-scale implementation is targeted for summer 2024 at the Olympic Village, for athletes;
◆ Experimentation at Paris-Orly of a new explosives detector technology based on 3D scanners, enabling faster baggage screening without removing electronic devices and liquids;
◆ Experimentation with an electric towing vehicle at Paris-Charles de Gaulle, enabling minimal use of aircraft engines while taxiing on the platform;

These initiatives are in line with the "2025 Pioneers" strategic roadmap objective of rolling out 120 innovative experiments by 2025.

Evolution of 2023 half-year traffic

2.2 Evolution of 2023 half-year traffic

Group Traffic1:

	H1 2023
PASSAGERS	Passengers	Change 23/22	Recovery vs. 2019
Paris-CDG	31,778,035	+27.9%	87.5%
Paris-Orly	15,316,869	+21.4%	95.8%
Total Paris Aéroport	47,094,904	+25.7%	90.0%
Antalya	12,870,273	+26.5%	95.7%
Almaty	4,186,077	+37.1%	150.0%
Ankara	5,495,966	+39.9%	78.6%
Izmir	4,710,465	+11.0%	81.1%
Bodrum	1,388,951	+7.4%	90.8%
Gazipaşa	342,234	+20.0%	80.0%
Medina	4,682,023	+69.3%	113.5%
Tunisia	790,935	+71.2%	73.0%
Georgia	1,801,900	+30.8%	85.2%
North Macedonia	1,338,406	+41.1%	115.0%
Zagreb	1,693,532	+30.3%	110.4%
Total TAV Airports	39,300,762	+31.7%	95.8%
New Delhi	35,765,336	+31.5%	109.8%
Hyderabad	11,928,030	+36.4%	108.1%
Medan	3,768,092	+47.8%	97.1%
Goa	1,632,053	-	-
Total GMR Airports2	53,093,511	+33.7%	108.4%
Santiago de Chile	11,133,883	+27.5%	88.5%
Amman	4,350,608	+33.9%	104.9%
Other airports3	424,122	+90.0%	82.0%
GROUPE ADP1	155,397,790	+30.3%	97.3%

¹ Group traffic includes traffic from airports operated by Groupe ADP in full ownership (including partial ownership) or under concession, receiving regular commercial passenger traffic, excluding airports under management contract. Historical data since 2019 is available on the company's website.

² Changes vs. 2022 and traffic % vs. 2019 hereabove are calculated on a like-for-like basis, by comparing 2023 traffic data with historical traffic data for the current scope (see Appendix 2 of this press release), except from Goa airport in 2023, opened on January 5th, 2023. ³ Antananarivo & Nosy Be airports.

Traffic at Paris Aéroport

Over the 1st half of 2023, Paris Aéroport traffic was up +25.7% with a total of 47.1 million of passengers, at 90.0% of traffic in the same period in 2019.

Geographical breakdown is as follows:

Traffic within mainland France was up +2.2% compared to the same period in 2022, at 75.1% of 2019 level;
Traffic with the French Overseas Territories was up +7.1% compared to the same period in 2022, at 97.2% of 2019 level.
European traffic (excluding France) was up +24.9% compared to the same period in 2022, at 92.8% of 2019 level;
International traffic (excluding Europe and French Overseas Territories) was up +41.4% compared to the same period in 2022, at 92.0% of 2019 level, due to the increase of the following destinations: North America (+33.3%), Latin America (+8.9%), Middle-East (+32.5%), Asia-Pacific (+175.3%) and Africa (+38.8%).

IMPORTANT NOTE: Since the traffic release of December and the year 2022, the geographical breakdown at Paris Aéroport within this release as well as in the historical data used for variation and recovery calculations are aligned with the different categories applicable to airport fees. It presents the detailed breakdown of the "Europe" traffic into three categories: "Schengen Area" traffic, "UE excluding Schengen & United Kingdom" traffic, and "Other Europe" traffic. Traffic with "French overseas territories", is presented separately from the "International" traffic, in which it was included until the November 2022 traffic release. It is reminded that airports fees applicable to these different categories are available on the company website.

	H1 2023
	Share of traffic	Change 23/22	Recovery vs. 2019
Mainland France	12.8%	+2.2%	75.1%
French Overseas Territories	4.8%	+7.1%	97.2%
Schengen Area	36.9%	+23.1%	95.9%
EU ex. Schengen & United-Kingdom1	6.1%	+37.8%	91.3%
Other Europe	2.3%	+23.0%	62.8%
Europe	45.3%	+24.9%	92.8%
Africa	13.0%	+38.8%	106.0%
North America	11.2%	+33.3%	98.6%
Latin America	2.9%	+8.9%	79.6%
Middle East	5.5%	+32.5%	95.8%
Asia-Pacific	4.5%	+175.3%	61.4%
Other International	37.1%	+41.4%	92.0%
PARIS AEROPORT	100.0%	+25.7%	90.0%

The number of connecting passengers was up +19.8%. Connecting rate stood at 20.3%, down – 1.1 point compared to 1st half of 2022. Seat load factor was up +6.1 points, at 84.5%.

Aircraft movements at Paris Aéroport was up +14.3%, at 311,701 movements, of which 214,247 movements at Paris-Charles de Gaulle, up +16.4%, at 88.9% of 2019 level, and 97,454 movements at Paris-Orly, up +10.1%, at 88.0% of 2019 level.

¹ Traffic with Croatia was included in the EU ex. Schengen until April 2023. It is now accounted within the Schengen Area since April 2023 onwards.

Traffic assumptions, forecasts and targets 2023-2025

2.3 Traffic assumptions, forecasts and targets 2023-2025

As part of the 2025 Pioneers strategic roadmap communicated on February 16th, 2022, Groupe ADP has set out targets up to 2025. These targets have been built on the assumptions of no new restrictions or airport closures linked to the health crisis, of a stability of the economic model in Paris and of an absence of abnormally high volatility in terms of exchange rates and inflation rates. They have also been built on the basis of the consolidation scope at the end of 2021, with no assumption of changes up to 2025.

It is specified that any further changes to the assumptions on which the group's targets are based could have an impact on the volume of traffic and the 2025 Pioneers financial indicators.

	2023	2024	2025
Group traffic1	95% - 105%	-
In % of 2019 traffic	- Back to 2019 level between 2023 and 2024
Traffic at Paris Aéroport	87% - 93%	90% - 100%	95% - 105%
In % of 2019 traffic	Back to 2019 level between 2024 and 2026, above 2019 level from 2026
Extime Paris Sales / Pax2 In euros	-	-	€29.5
ADP SA operating expenses per passenger, in €	-	€17 - €20 / pax
Group EBITDA growth Compared to 2019	At least equal to the 2019 EBITDA (i.e. ≥ €1,772M)	-	-
Group EBITDA margin In % of revenue	32% to 37% 35% to 38%
Net income, attributable to the Group	Positive
in millions of euros Group investments (excl. financial investments)	c.1.3 billion euros per year on average between 2023 and 2025, in current euros
ADP SA investments (excl. financial investments, regulated and non-regulated)	c.900 million euros per year on average between 2023 and 2025, in current euros
Net Financial Debt/ EBITDA ratio incl. Selective international growth	-	-	3.5x – 4.5x
Dividends In % of the NRAG due for the year N, paid N+1		60% pay out rate Minimum of €3 per share

² Sales per passenger in the airside activities, including shops, bars & restaurants, foreign exchange & tax refund counters, commercial lounges, VIP reception, advertising, and other paid services in the airside area.

2.4 Presentation of Groupe ADP's 2022 half-year results

Half-year 2023 consolidated accounts

H1 2023	H1 2022	2023/2022

	2,006	+€539M	+26.9%
863	702	+€161M	+22.9%
33.9%	35.0%	-1.1pt	-
449	340	+€109M	+31.6%
17.6%	17.0%	+0.6pt	-
444	348	+€96M	+27.5%
(139)	(121)	-€18M	+14.8%
211	160	+€51M	+31.8%
	2,545

Revenue

(in millions of euros)	H1 2023	H1 2022	2023/2022
Revenue	2,545	2,006	+€539M	+26.9%
Aviation	919	741	+€178M	+23.9%
Retail and services	818	625	+€193M	+30.8%
of which Extime Duty Free Paris	344	254	+€90M	+35.3%
of which Relay@ADP	52	39	+€13M	+33.3%
Real estate	167	156	+€11M	+7.6%
International and airport developments	709	538	+€171M	+31.8%
of which TAV Airports	558	410	+€148M	+36.3%
of which AIG	126	104	+€22M	+21.5%
Other activities	90	83	+€8M	+9.1%
Inter-sector eliminations	(158)	(137)	-€21M	+15.1%

Groupe ADP's consolidated revenue stood at 2,545 million euros in 1st half of 2023, up +26.9% (+539 million euros) compared to the 1st half of 2022, mainly due to the positive effect of traffic recovery on:

◆ Revenue of Aviation activities in Paris, was up +23.9% (+178 million euros), to 919 million euros;
◆ Revenue of Retail and Services in Paris, was up +30.8% (+193 million euros), to 818 million euros;
◆ Revenue of International and airport developments segments, especially in TAV Airports, was up +31.8% (+171 million euros), to 709 million euros.

The amount of inter-sector eliminations stood at 158 million euros (+15.1%) over the 1st half of 2023, compared to 137 million euros during the same period in 2022.

EBITDA

(in millions of euros)	H1 2023	H1 2022		2023/2022
Revenue	2,545	2,006	+€539M	+26.9%
Operating expenses	(1,729)	(1,367)	-€362M	+26.4%
Consumables	(402)	(309)	-€93M	+30.0%
External services	(597)	(473)	-€124M	+26.4%
Employee benefit costs	(496)	(384)	-€112M	+29.1%
Taxes other than income taxes	(176)	(151)	-€25M	+16.7%
Other operating expenses	(57)	(50)	-€7M	+14.4%
Other incomes and expenses	47	64	-€17M	-26.9%
EBITDA	863	702	+€161M	+22.9%
EBITDA/Revenue	33.9%	35.0%	-1.1pt	-

Group's operating expenses stood at 1,729 million euros in the 1st half of 2023, up +26.4% (+362 million euros). The distribution of the group's operating expenses was as follows:

◆ Consumables stood at 402 million euros, up +30.0% (+93 million euros), mainly due to:
- The increase of +49 million euros (+45.1%) for TAV Airports, of which 46 million euros (+63.2%) for Almaty;
- The increase of +33 million euros (+28.4%) for the retail subsidiaries (Extime Duty Free Paris and Relay@ADP) due to the increase in cost of goods sold, in line with the increase in revenue of these subsidiaries.
◆ External services stood at 597 million euros, up +26.4% (+124 million euros), due to:
- The increase in expenses related to subcontracting for +57 million euros (+24.5%) especially in PRM subcontracting (reception and assistance for Persons with Reduced Mobility), due to the traffic recovery and the reopening of the infrastructures in Paris that were still closed in the 1st half of 2022;
- The increase in expenses related to other services and external expenses for +49 million euros (+30.3%), due in particular to the mechanical increase in the concession rent in Amman for +13 million euros (+22.5%), linked to the increase in revenue of AIG (+21.5%).
◆ Employee benefits costs stood at 496 million euros. Their increase by +29.1% (+112 million euros), reflects the impact of recruitments made in 2022 and in 1st half of 2023, as well as:
- +20 million euros from the base effect of an employee benefits provision reversal accounted for in the 1st half of 2022 (related to the termination of the "article 39" defined-benefit pension plan);
- The effect linked to measures salaries increase implemented in July 2022 and in January 2023 on employee benefits costs of Aéroports de Paris, for +14 million euros;
- An increase in employee benefits costs of TAV Airports for +47 million euros (+48.6%), due to increase of salaries in Turkey, mainly due to inflation and, to a lesser measure, an increase in the number of employees.
◆ Taxes other than income taxes stood at 176 million euros, up +16.7% (+25 million euros), due to:
- An increase in property taxes in Paris of +18 million euros (+25.8%), mainly due to the unfavorable base effect of property tax reductions in 2022, linked to infrastructure closures in Paris in 2020;
- An increase in taxes on security services of +5 million euros (+16.5%), linked to traffic growth;
◆ Other operating expenses stood at 57 million euros, up +14.4% (+7 million euros).

Other income and expenses represented a net product of 47 million euros, down -26.9% (-17 million euros) due to:

Unfavorable base effect of a reversal of an international provision booked in 1st half of 2022;
Losses on unrecoverable receivables in Paris;
Income of 17 million euros from the sale of excess electrical capacities by Aéroports de Paris.

Over 1st half of 2023, the group's consolidated EBITDA stood at 863 million euros, up +22.9% (+161 million euros). EBITDA margin stood at 33.9% of revenue as of 1st half of 2023, down -1.1 point due to the trend in ordinary expenses, and the normalization of Almaty's performance after a particularly strong performance in 2022 (see page 18, International segment performance).

Net result attributable to the Group

(in millions of euros)	H1 2023	H1 2022		2023/2022
EBITDA	863	702	+€161M	+22.9%
Amortization and impairment of tangible and intangible assets	(396)	(356)	-€40M	+11.4%
Share of profit or loss in associates and joint ventures	(18)	(6)	-€12M	+222.8%
Operating income from ordinary activities	449	340	+€109M	+31.6%
Other operating income and expenses	(5)	8	-€13M	-
Operating income	444	348	+€96M	+27.5%
Financial income	(139)	(121)	-€18M	+14.8%
Income before tax	305	227	+€78M	+34.3%
Income tax expense	(110)	(59)	-€51M	+85.8%
Net income from continuing operations	195	168	+€27M	+16.1%
Net income from discontinued operations	-	(1)	-	-73.2%
Net income	194	167	+€27M	+16.4%
Net income attributable to non-controlling interests	17	(7)	+€24M	-
Net income attributable to the Group	211	160	+€51M	+31.8%

Amortization and impairment of tangible and intangible assets stood at 396 million euros, up +11.4% (+40 million euros), mainly due to:

◆ The increase of amortization and impairment of TAV Airports for +28 million euros (+57.5%). This evolution reflects the increase of the amount of amortization of Airport Operating Rights (AOR) of several of TAV assets, which is calculated according to the level of traffic1;
◆ The unfavorable base effect of a reversal of an international impairment loss of 10 million euros, booked in the 1st half of 2022.

Share of profit or loss in associates and joint ventures stood at -18 million euros, down -12 million euros, mainly due to:

◆ The performance of TAV Airports' equity-accounted companies, up +1 million euros, despite the impact of the earthquake tax in Turkey, standing at -6.5 million euros;
◆ The unfavorable base effect of the net gain of 6 million euros recorded in 2022 in the context of disposal of the share capital held by ADP International in ATOL, the company operating Mauritius airport;
◆ The net result attributable to GMR Airports, down -14 million euros.

Operating income from ordinary activities stood at 449 million euros, up +31.6% (+109 million euros), driven by the EBITDA, up +161 million euros (+22.9%), partially offset by the items described above.

Operating income stood at 444 million euros, up +27.5% (+96 million euros), especially due to the increase of operating income from ordinary activities.

Financial result stood at -139 million euros, down -18 million euros (+14.8%), mainly due to the increase of gross cost of debt of TAV Airports for -17 million euros.

The income tax expense stood at 110 million euros, compared to 59 million euros in 1st half of 2022 due to the increase of income before tax.

Net income stood at 194 million euros on 1st half of 2023, up +16.4% (+27 million euros) compared to the same period in 2022.

Net income attributable to non-controlling interests was up +24 million euros, to 17 million euros.

Given all these items, net income attributable to the Group stood at 211 million euros, up +31.8% (+51 million euros) compared to the same period in 2022.

¹ See note 6.1.1 "Airport Operating Right" to the consolidated financial statements of Groupe ADP, shown on page 381 of the 2022 Universal Registration Document .

Analysis by segment

Aviation – Parisian platforms

(in millions of euros)	H1 2023	H1 2022		2023/2022
Revenue	919	741	+€178M	+23.9%
Airport fees	543	434	+€109M	+25.1%
Passenger fees	341	259	+€82M	+31.5%
Landing fees	121	103	+€18M	+17.5%
Parking fees	81	72	+€9M	+12.9%
Ancillary fees	119	92	+€27M	+28.6%
Revenue from airport safety and security services	238	198	+€40M	+20.1%
Other income	19	16	+€3M	+13.8%
EBITDA	224	186	+€38M	+20.6%
Operating income from ordinary activities	37	7	+€30M	-
EBITDA / Revenue	24.4%	25.0%	-0.6pt	-
Income from ordinary activities / Revenue	4.0%	0.9%	+3.1pts	-

Over 1st half of 2023, revenue of aviation segment, which relates solely to the airport activities carried out by Aéroports de Paris as operator of the Parisian platforms, was up +23.9% (+178 million euros) to 919 million euros.

Revenue from airport fees (passenger fees, landing fees and aircraft parking fees) was up +25.1% (+109 million euros), to 543 million euros due to:

◆ the increase of +82 million euros (+31.5%) of the revenue from passenger fees, due to the increase in passenger traffic (+25.7%) as well as the increase of international share of traffic (see geographical breakdown traffic on page 9);
◆ the increase of +18 million euros (+17.5%) of the revenue from landing fees, due to the increase in aircraft movements (+14.3%);
◆ the increase of +9 million euros (+12.9%) of the revenue from parking fees.

Revenue from ancillary fees was up +28.6% (+27 million euros), to 119 million euros, linked to the increase in passenger traffic.

Revenue from airport safety and security services was up +20.1% (+40 million euros), to 238 million euros. Revenue from operating safety and security services are determined by the partially fixed costs of these activities, revenue is growing at a lower rate than passenger traffic.

Other income, mostly consisting in re-invoicing to the French Air Navigation Services Division of leasing associated with the use of terminals and other work services made for third parties are up +13.8% (+3 million euros), to 19 million euros.

EBITDA was up +20.6% (+38 million euros) to 224 million euros due to the increase in revenue.

Operating income from ordinary activities was up +30 million euros, to 37 million euros over 1st half of 2023, due to the EBITDA increase.

(in millions of euros)	H1 2023	H1 2022	2023/2022
Revenue	818	625	+€193M	+30.8%
Retail activities	515	367	+€148M	+40.2%
Extime Duty Free Paris	344	254	+€90M	+35.3%
Relay@ADP	52	39	+€13M	+33.3%
Other Shops and Bars and restaurants	78	44	+€34M	+76.1%
Advertising	20	13	+€7M	+56.7%
Other products	21	17	+€4M	+25.4%
Car parks and access roads	83	67	+€16M	+24.9%
Industrial services revenue	105	91	+€14M	+15.4%
Rental income	79	69	+€10M	+14.7%
Other income	37	32	+€5M	+13.2%
EBITDA	345	250	+€95M	+38.0%
Operating income from ordinary activities	276	183	+€93M	+50.8%
EBITDA / Revenue	42.2%	40.0%	+2.2pts	-
Op. income from ordinary activities / Revenue	33.8%	29.3%	+4.5pts	-

Retail and services – Parisian platforms

Over the 1st half of 2023, Retail and services segment revenue, which includes only Parisian activities was up +30.8% (+193 million euros), to 818 million euros.

Revenue from retail activities consists in revenue received from airside and landside shops, bars and restaurants, banking and foreign exchange activities, and car rental companies, as well as revenue from advertising.

Over the 1st half of 2023, revenue from retail activities was up +40.2% (+148 million euros), to 515 million euros, due to:

◆ revenue from Extime Duty Free, was up +35.3% (+90 million euros), to 344 million euros and from Relay@ADP, up +33.3% (+13 million euros), to 52 million euros due to increase in attendance and the number of outlets opened compared to the same period in 2022;
◆ revenue from Other Shops and Bars and restaurants, was up +76.1% (+34 million euros), to 78 million euros due the increase of number of outlets opened compared to 1st half of 2022;
◆ revenue from advertising, was up +56.7% (+7 million euros), to 20 million euros due to the increase in attendance.

Revenue from car parks was up +24.9% (+16 million euros), to 83 million euros, linked to the increase of passengers traffic.

Revenue from industrial services (supply of electricity and water) was up +15.4% (+14 million euros), to 105 million euros.

Rental revenue (leasing of spaces within terminals), was up +14.7% (+10 million euros), to 79 million euros.

Other revenue (primarily constituted of internal services) was up +13.2% (+5 million euros), to 37 million euros.

EBITDA was up +38.0% (+95 million euros), to 345 million euros, mainly due to higher revenue from retail activities, notably Extime Duty Free Paris.

Operating income from ordinary activities was up +50.8% (+93 million euros), to 276 million euros, due to the EBITDA increase.

INTERIM REPORT ON ACTIVITY

2 Presentation of Groupe ADP's 2022 half-year results

Real Estate - Parisian platforms

(in millions of euros)	H1 2023	H1 2022		2023/2022
Revenue	167	156	+€11M	+7.6%
External revenue	146	132	+€14M	+10.6%
Land	65	60	+€5M	+7.5%
Buildings	49	42	+€7M	+17.4%
Others	32	30	+€2M	+7.3%
Internal revenue	22	24	-€2M	-9.2%
EBITDA	109	91	+€18M	+19.9%
Operating income from ordinary activities	81	57	+€24M	+40.8%
EBITDA / Revenue	65.1%	58.4%	+6.7pts	-
Op. income from ordinary activities / Revenue	48.3%	36.9%	+11.4pts	-

Over the 1st half of 2023, revenue from the Real Estate segment, which includes only Parisian activities, up +7.6% (+11 million euros), to 167 million euros.

External revenue realized with third parties, up +10.6% (+14 million euros), to 146 million euros, mainly due to additional rents related to assets returned to full ownership in 2022 and the effect of indexation clauses on rents.

Internal revenue, down -9.2% (-2 million euros), to 22 million euros notably as a result of the reduced use of internally offices, through the implementation of a new flex office organization. The space freed up in this way being attended to be rented out to third parties.

EBITDA of the segment up +19.9% (+18 million euros), to 109 million euros.

Operating income from ordinary activities up +40.8% (+24 million euros), to 81 million euros.

(in millions of euros)	H1 2023	H1 2022	2023/2022
Revenue	709	538	+€171M	+31.8%
ADP International	134	121	+€13M	+10.7%
of which AIG	126	104	+€22M	+21.5%
of which ADP Ingénierie	5	12	-€7M	-55.8%
TAV Airports	558	410	+€148M	+36.3%
Société de Distribution Aéroportuaire Croatie	8	6	+€2M	+23.3%
EBITDA	167	163	+€4M	+2.4%
Share of profit or loss in associates and joint ventures	(22)	(6)	-€16M	+258.5%
Operating income from ordinary activities	45	90	-€45M	-50.7%
EBITDA / Revenue	23.6%	30.3%	-6.7pts	-
Op. Income from ordinary activities / Revenue	6.3%	16.8%	-10.5pts	-

International and airport developments

Over the 1st half of 2023, revenue from the International and airport developments segment was up +31.8% (+171 million euros), to 709 million euros, mainly due to the increase in revenue from TAV Airports and AIG.

Revenue from AIG was up +21.5% (+22 million euros), to 126 million euros, mainly due to the increase of +34.8% of revenue from airport fees, linked to the increase of traffic in Amman, up +33.9%.

Revenue from ADP Ingénierie down -55.8% (-7 million euros) to 5 million euros, linked with the business restructuring project currently underway.

TAV Airports revenue was up +36.3% (+148 million euros), to 558 million euros, due to:

◆ the effect of increased traffic on the revenue of the assets managed by TAV Airports, notably at Almaty, up +53 million euros, in Georgia, up +10 million euros, and at Izmir up +8 million euros.
◆ the increases of revenue of TAV Airports' service companies, notably Havas (company specialized in ground handling), for +32 million euros, due to the increase in the number of flights served, TAV OS (company specialized in lounges) for +20 million euros and BTA (company specialized in bars and restaurants), for +12 million euros, due to the increase in traffic.

EBITDA of segment was up +2.4% (+4 million euros), to 167 million euros:

◆ TAV Airports' record an EBITDA at 145 million euros, up +18 million euros (+13.9%), despite the decrease of Almaty airport EBITDA (-1 million euros), whose business is normalizing compared to 2022 which was particularly strong;
◆ AIG record an EBITDA at 34 million euros, up +4 million euros (+11.5%), due to the increase in revenue and despite the increase of currents expenses up +16 million euros, especially linked to the increase of 13 million for concession rents following the takeover of the business;
◆ These contributions were partially offset by the unfavorable base effect of a reversal of an international provision booked in the 1st half of 2022.

Operating income from ordinary activities of the segment stood at 45 million euros, down -50.7% (-45 million euros), due to:

◆ The increase in depreciation and amortization at TAV Airports of +28 million euros (+57.5%). This increase is mainly due to higher depreciation of operating rights at several TAV Airports airports, which are calculated on the basis of traffic¹ levels;
◆ the decrease in results from equity-accounted companies, for -16 million euros, to -22 million euros, due to the decrease in GMR Airports' contribution for -14 million euros, and of an unfavorable base effect of the net gain of 6 million euros recognized in 2022 on the disposal of ADP International's shares in ATOL, the company operating Mauritius airport.

Hyperinflation in Turkey: In the context of very high inflation in Turkey, group entities whose functional currency is the Turkish lira are obliged to apply the provisions of IAS 29 "Financial Reporting in Hyperinflationary Economies" from February 2022 onwards, requiring the restatement of the financial statements to take account of changes in the general purchasing power of this currency. The limited effect on the Group's financial statements is described in note 2 of the consolidated financial statements.

¹ See note 6.1.1 "Airport Operating Right" to the consolidated financial statements of Groupe ADP, shown on page 381 of the 2022 Universal Registration Document .

Other activities

(in millions of euros)	H1 2023	H1 2022	2023/2022
Products	90	83	+€7M	+9.1%
Hub One	81	78	+€3M	+3.8%
EBITDA	17	13	+€4M	+35.6%
Operating income from ordinary activities	10	4	+€6M	+168.0%
EBITDA / Products	19.0%	15.3%	+3.7pts	-
Op. income from ordinary activities / Products	10.7%	4.4%	+6.3pts	-

Over the 1st half of 2023, products from the other activities segment, were up +9.1% (+7 million euros), to 90 million euros.

Revenue from Hub One was up +3.8% (+3 million euros), to 81 million euros.

EBITDA was up +35.6% (+4 million euros), to 17 million euros.

Operating income from ordinary activities was up +168.0% (+6 million euros) compared to the same period in 2022, to 10 million euros.

Consolidated balance sheet as of 30 June 2023

2.5 Consolidated balance sheet as of 30 June 2023

(in millions of euros)	As of 30/06/2023	As of 30/06/2022
Intangible assets	2,915	3,004
Property, plant and equipment	8,342	8,253
Investment property	616	621
Investments in associates	1,774	1,879
Other non-current financial assets	1,192	668
Deferred tax assets	34	42
Non-current assets	14,873	14,467
Inventories	127	133
Contract assets	1	4
Trade receivables	1,113	938
Other receivables and prepaid expenses	382	307
Other current financial assets	229	237
Current tax assets	31	121
Cash and cash equivalents	2,251	2,631
Current assets	4,134	4,371
Assets held for sales	43	7
Total assets	19,050	18,845

(in millions of euros)	As of 30/06/2023	As of 30/06/2022
Share capital	297	297
Share premium	543	543
Treasury shares	(38)	(40)
Retained earnings	3,385	3,408
Other equity items	(205)	(183)
Shareholders' equity - Group share	3,982	4,025
Non-controlling interests	789	830
Shareholders' equity	4,771	4,855
Non-current debt	8,365	8,763
Provisions for employee benefit obligations (more than one year)	401	386
Other non-current provisions	57	56
Deferred tax liabilities	431	433
Other non-current liabilities	782	960
Non-current liabilities	10,036	10,598
Contract liabilities	2	2
Trade payables and other payables	822	909
Other debts and deferred income	1,350	1,171
Current debt	2,016	1,233
Provisions for employee benefit obligations (less than one year)	29	56
Other current provisions	12	6
Current tax liabilities	12	15
Current liabilities	4,243	3,392
Total equity and liabilities	19,050	18,845

2 Half-Year 2023 consolidated statement of cash flows

2.6 Half-Year 2023 consolidated statement of cash flows

(in millions of euros)	H1 2023	H1 2022
Operating income	444	348
Income and expense with no impact on net cash	393	244
Net financial expense other than cost of debt	(21)	17
Operating cash flow before change in working capital and tax	816	609
Change in working capital	(106)	22
Tax expenses	(28)	(11)
Impact of discontinued activities	(1)	1
Cash flows from operating activities	681	621
Purchase of tangible assets, intangible assets and investment property	(353)	(270)
Change in debt and advances on asset acquisitions	(38)	(104)
Acquisitions of subsidiaries and investments (net of cash acquired)	(81)	(397)
Proceeds from sale of subsidiaries (net of cash sold) and investments	10	11
Change in other financial assets	(472)	(18)
Proceeds from sale of property, plant and equipment	2	4
Proceeds from sale of non-consolidated investments	92	-
Dividends received	61	10
Cash flows from investing activities	(779)	(764)
Proceeds from long-term debt	306	340
Repayment of long-term debt	(134)	(564)
Repayments of lease liabilities and related financial charges	(10)	(10)
Capital grants received in the period	2	10
Revenue from issue of shares or other equity instruments	-	(2)
Net purchase/disposal of treasury shares	(1)	-
Dividends paid to shareholders of the parent company	(309)	-
Dividends paid to non controlling interests in the subsidiaries	(8)	(7)
Change in other financial liabilities	1	12
Interest paid	(162)	(174)
Interest received	38	(2)
Impact of discontinued activities	-	-
Cash flows from financing activities	(277)	(397)
Impact of currency fluctuations	(6)	8
Change in cash and cash equivalents	(381)	(532)
Net cash and cash equivalents at beginning of the period	2,630	2,378
Net cash and cash equivalents at end of the period	2,249	1,846
of which Cash and cash equivalents	2,251	1,847
of which Bank overdrafts	(2)	(1)

2.7 Financial debt

Cash and investments

As of June 30th, 2023, Groupe ADP had cash position of 2.3 billion euros. Over the 1st half of 2023, cash is down -380 million euros (-14.4%), operating cash flows, standing at 681 million euros was more than offset by:

◆ The subscription by Groupe ADP of 330,817 Foreign Currency Convertible Bonds¹ (FCCBs) issued by GIL for a total amount of c.331 million euros;
◆ Payment on April 27th, 2023 by Groupe ADP of 119 million euros to the Turkish airport authority, DHMI, representing the upfront payment of 25% of the Ankara concession rent;
◆ Ex-dividend on June 7th,2023, for an amount of €3.13 per share, or 309 million euros.

In view of this available cash and its forecasts for 2023, the group has liquidity that it considers satisfactory in the current macroeconomic context and to meet its operating needs and financial commitments.

Tangible and intangible investments stood at 353 million euros over 1st half of 2023, compared to 270 million euros over 1st half of 2022.

Financial debt

Groupe ADP's net financial debt stood at 8,089 million euros as of June 30th, 2023, compared to 7,440 million euros as of December 31st, 2022. As of June 30th, 2023, debt ratio stood at 4.3x EBITDA over 12 months, compared to 4.4x EBITDA at the end of 2022.

¹ see press release of March 19th 2023

2.8 Risk factors and uncertainties for the 2nd half of 2023

The main risks and uncertainties which the Group considers to be confronted with are described within chapter 2 "Risk factors and internat control " of the 2022 Universal Registration Document, filed with the French Financial Markets Authority on 18 March 2021 under the number D.23-0284.

The table below presents the risks and their evolution at the date of publication of this interim financial report, compared with the description of risk factors in chapter 2.1 of the Universal 2022 Registration Document.

The forward-looking statements based on assumptions included in the current report are likely to change and remain notably subject to risks and uncertainties.

The risk factors included in the 2022 Universal Registration Document are presented by categories without hierarchy between them. The risks are ranked, within the same category, in descending order of importance, and are numbered in order to facilitate the link between the following table and the detailed descriptions.

They are synthetized in the table below which shows the hierarchization depending on their "net criticity". In the following table, Groupe ADP has identified some extra-financial risks figuring within the Aéroports de Paris Statement of extra-financial performance 2022 (chapter 4.8.1 of the 2022 Universal Registration Document) which it considers significant for this description of the major and specific risks to the Groupe ADP's activities.

The Groupe ADP's risk factors are grouped into five risk categories (risks related to the business model, risks related to external threats, risks related to the maintenance and robustness of airport capacities, risks related to the group's platform development projects, risks related to compliance). Each of these five categories includes one or more risk factors, with a total of 15 risk factors.

INTERIM REPORT ON ACTIVITY

2 Risk factors and uncertainties for the 2nd half of 2023

Categories	Description	Net criticity	Extra financial risk
Risks for the business model	1 - A: Risks related to the economic trajectory In a changing macroeconomic context, the uncertainties weighing on the growth of air traffic and its recovery to that of 2019 are weighing on Groupe ADP's activities.	+++	
	1 - B: Risks related to regulation Uncertainties about the legal framework of regulation and the decision-making practices of ART are likely to affect Groupe ADP's business model.	+++
	1 - C: Risks related to quality of service In regard of the consequences of the health crisis and the traffic seen in 2022, Groupe ADP is facing a real challenge in preserving and adapting its quality-of service initiatives.	+++
	1 - D: Liquidity risks The current economic and health context poses a risk to Groupe ADP's cash position, which must remain sufficient to meet its commitments.	++
Risks of external threats	2 - A: Cybersecurity risks In a global context of increasing cyber-attacks, Groupe ADP may be exposed to malicious acts on its information systems.	+++
	2 - B: Geopolitical risks Geopolitical events that may cause changes in the global economic situation are likely to affect Groupe ADP's activities.	+++
	2 - C: Safety and security risks In a turbulent global geopolitical context, marked by an ever-changing threat of terrorism or attacks by third countries, Groupe ADP may be exposed to malicious acts on people, its facilities or on the assets it operates.	+++
Risks related to the maintenance and robustness of airport capacities	3 - A: Risks related to network management Groupe ADP faces challenges with respect to the robustness of its key networks (electricity, energy, water, IT and telecommunications).	+++ Increase
	3 - B: Portfolio management risks Groupe ADP faces the challenge of maintaining its assets.	+
	3 - C: Risks related to the management of major projects Groupe ADP is exposed to the risk of non-control of major projects.	+
Risk related to the Group's platform development projects	4 - A: Risks related to the effects of climate change Insufficient awareness of environmental issues and of the impacts of climate change could negatively affect Groupe ADP's activity and growth prospects, and even lead to a decline in air traffic.	+++	
Risks related to compliance	5 - A: Corruption and business integrity risks Prohibited practices contrary to ethics and compliance in business conduct by employees or third parties may damage Groupe ADP's reputation and share value.		
	5 - B: Risks related to data management Legislative and regulatory changes may affect Groupe ADP's data management and generate significant compliance costs.	+
	5 - C: Risks related to aviation safety Groupe ADP is subject to particularly constraining civil aviation safety standards, non-compliance of which may have negative consequences for its airport management activity.	+
	5 – D: Riks related to regulatory evolutions New regulatory requirements (duty of care, CSRD directive, etc.) to be integrated within tight deadlines	+ New
Key
Net criticity	+++ ++ High criticity Medium criticity	+ Low criticity

Change compared	+	+	+
to 2022	Decrease of criticity	Level unchanged	Increase of criticity

Like other listed companies, Groupe ADP is facing risks related to foreign exchange and interest rates. Nevertheless, with regard to its financial position and rating in particular (A, negative outlook since 25 March 2020, long term credit rating by the Standard & Poor's agency), Groupe ADP regards the interest rates risks as not material. They are described in the appendices of the group consolidated accounts.

For foreign exchange risks, the Group is exposed to fluctuations of the Indian Rupee (INR) and of the Turkish Lyra. Nevertheless, the group regards foreign exchange risks as not material. See note 9 in the 2022 consolidated financial statements for more information on financial risk management, and in particular note 9.5 for more information on the use of financial instruments and hedge accounting.

Evolution of risk factor 3-A: Network management risks

Groupe ADP is facing challenges in terms of the robustness of its key networks (electricity, energy, water, IT and telecommunications).

Detailed risk factor information

As a strategic infrastructure designated as an "operator of vital importance" and as an establishment open to the public, Groupe ADP's business continuity requirements are high. The environment in which it operates exposes it and its partners to numerous risks, both technical and malicious sources. In recent years, for example, the group has been confronted with several events, including kerosene shortages, power cuts and computer breakdowns.

Risk management system

These factors, whose the 2024 Olympic and Paralympic Games raise the stakes, lead the group to carry out a specific analysis of Group's external vulnerabilities.

2.9 Events having occurred since 30 June 2023

TAV Airports sells part of its stake in Medina airport

TAV Airports have signed a share purchase agreement (SPA) with Mada International Holding (Mada) on July 7th, 2023 of 24% of shares of Tibah Airports Development (Tibah), the company operating Medina airport in Saudi Arabia, equally owned by TAV Airports and Mada. This agreement provides that:

◆ TAV Airports will transfer 24% of shares of TIBAH to Mada for a consideration of USD135 million, leading the shareholding of TAV Airports in Tibah to 26% (against 50% previously);
◆ If the total passengers served in Medinah Airport for the calendar year of 2023 is below 8.14 million passengers and the force-majeure period is extended for one more year, the purchase price will be updated to USD165 million.
◆ With the financial close of Group's TIBAH share sale, expected during the 2nd half of 2023, TAV Airports will also transfer 48% of the balance of the shareholder loan to Mada.

In addition, a new shareholder agreement will be signed with Mada, preserving the current method of co-controlling governance of TIBAH.

2.10 Main related party agreements

As of 30 June 2023, the information relating to related parties is identical to that of 31 December 2022 (see 2022 Universal Registration Document) with the exception of the signature of an engineering, procurement and construction (EPC) contract for an amount of €202 million, with a joint venture formed by TAV Construction and Sera related to additional investments for the capacity increase of Ankara Esenboğa Airport. On top of EPC amount, there is a price adjustment mechanism up to 7.5% of the total EPC amount.

3 STATUTORY AUDITOR'S REVIEW REPORT ON THE INTERIM FINANCIAL INFORMATION

To the Shareholders,

In compliance with the assignment entrusted to us by your Annual General Meeting and in accordance with the requirements of article L. 451-1-2 III of the French monetary and financial code ("code monétaire et financier"), we hereby report to you on:

the review of the accompanying condensed interim consolidated financial statements of Aéroports de Paris, for the period from January 1st, 2023 to June 30th, 2023
the verification of the information presented in the interim management report.

These condensed interim consolidated financial statements are the responsibility of the Board of Directors. Our role is to express a conclusion on these financial statements based on our review.

1. Conclusion on the financial statements

We conducted our review in accordance with professional standards applicable in France.

A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 – standard of the IFRSs as adopted by the European Union applicable to interim financial information.

2. Specific verification

We have also verified the information presented in the interim management report on the condensed interim consolidated financial statements subject to our review.

We have no matters to report as to its fair presentation and consistency with the condensed interim consolidated financial statements.

STATUTORY AUDITOR'S REVIEW REPORT ON THE INTERIM FINANCIAL INFORMATION

Paris-La Défense, July 27th, 2023

The Statutory Auditors French original signed by

DELOITTE & ASSOCIES ERNST & YOUNG Audit

Guillaume Troussicot Antoine Flora Alain Perroux

4 FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND 2023 FINANCIAL STATEMENTS

Key figures 30
Glossary 32
Consolidated Income Statement33
Consolidated Statement of Comprehensive Income 34
Consolidated Statement of Financial Position 35
Consolidated Statement of Cash flows 36
Consolidated Statement of Changes in Equity37

Notes to the consolidated financial statements

NOTE 1 Basis of preparation of consolidated financial statements38 NOTE 2 Significant events 41 NOTE 3 Scope of consolidation 45 NOTE 4 Information concerning the Group's operating activities 46 NOTE 5 Cost of employee benefits 60 NOTE 6 Intangible assets, tangible assets and investment properties 63 NOTE 7 Equity and Earnings per share 67 NOTE 8 Other provisions and other non-current liabilities 70

NOTE 9 Financing 72 NOTE 10 Other operating income and expenses 83 NOTE 11 Income tax 84 NOTE 12 Cash and cash equivalents and Cash flows 86 NOTE 13 Related parties disclosure 91 NOTE 14 Off-balance sheet commitments 92 NOTE 15 Litigations, legal and arbitration proceeding 94 NOTE 16 Subsequent events 95

4.1 Groupe ADP Consolidated Financial Statements as of 30 June 2023

Key figures

(In € millions)	Notes	Half-year 2023	Half-year 2022
Revenue	4	2,545	2,006
EBITDA		863	702
EBITDA/Revenue		33.9%	35%
Operating income from ordinary activities		449	340
Operating income		444	348
Net income attributable to the Group		211	160
Operating cash flow before change in working capital and tax		816	609
Acquisitions of subsidiaries and investments (net of cash acquired)	12	(81)	(397)
Purchase of property, plant, equipment, and intangible assets	12	(353)	(270)

(In € millions)	Notes	As at 30 Jun, 2023	As at 31 Dec, 2022
Equity	7	4,771	4,855
Net financial debt*	9	8,089	7,440
Gearing*		170%	153%
Net financial debt/EBITDA*		4.34	4.37

* See note 9.4.2 - Ebitda calculated on a rolling 12-month basis

FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND 2023 FINANCIAL STATEMENTS

Groupe ADP Consolidated Financial Statements as of 30 June 2023

Glossary

◆ Revenue refers to revenues from the ordinary activities of selling goods and services and leasing activities as a lessor. It also includes financial revenue linked to operational activity.
◆ EBITDA is an accounting measure of the operating performance of fully consolidated Group subsidiaries. It is comprised of revenue and other ordinary income less purchases and current operating expenses excluding depreciation and impairment of property, plant and equipment and intangible assets.
◆ Operating income from ordinary activities is intended to present the Group's recurring operational performance excluding the impact of non-current operations and events during the period. It is composed of EBITDA, depreciation and impairment of tangible and intangible assets (excluding goodwill), the share of profit or loss in associates and joint, and gain or loss from disposal of assets from real estate segment.
◆ The share of profit or loss in associates and joint ventures concerns the share of profit or loss from investments in associates and joint ventures over which the Group exercises significant influence or joint control. This line also includes the result of the sale of shares in companies accounted for by equity method as well as the revaluations at fair value of shares held in the event of a loss of significant influence.
◆ Operating income is the addition of Operating income from ordinary activities and other operating income and expenses, as they are non-recurring and significant in terms of consolidated performance. This may involve the disposal of assets or activities, goodwill impairment, costs incurred related to a business combination, restructuring costs or costs related to a one-off operation.
◆ Net result from discontinued activities, in accordance with IFRS 5 " Non-current Assets Held for Sale and Discontinued Operations", Groupe ADP discloses a single amount in the statement of comprehensive income on the line net income from discontinued operations, all components that have been disposed by the Group (shutdown of operations) or which are classified as held for sale.
◆ Operating cash flow before change in working capital and tax refers to all the internal resources generated by the company in its operating activities that enable its funding. It includes operating income and expenses that have an effect on cash. This can be found in the consolidated statement of cash flows.
◆ Purchase of property, plant, equipment corresponds to the acquisition or construction of tangible assets that the Group expects to be used over more than one year and that are recognized only if it is probable that the future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
◆ Purchase of intangible assets corresponds to the acquisition of identifiable non-monetary assets without physical substance, controlled by the entity and which future economic benefits are expected.
◆ Gross financial debt as defined by Groupe ADP includes long-term and short-term borrowings and debts (including accrued interests and hedge of the fair value of liabilities related to these debts), debts related to the minority put option (presented in other non-current liabilities).
◆ Net financial debt as defined by Groupe ADP refers to gross financial debt less, fair value hedging derivatives, cash and cash equivalents and restricted bank balances.
◆ Gearing is the ratio corresponding to: Net financial debt / Shareholders' Equity (including non-controlling interests).
◆ The Net Financial Debt/EBITDA Ratio is the ratio corresponding to the ratio: Net Financial Debt/EBITDA, which measures the company's ability to repay its debt.
◆ Minority interests are non-controlling interests. As part of shareholders' equity in the consolidated result, they are presented separately from shareholders' equity – Group share (shareholders' equity of the parent company).
◆ Non-current assets defined as opposed to current assets (these assets intended to be consumed, sold or realized during the financial year, being held to be sold within twelve months or considered as cash) comprise all assets held over a long period, including tangible, intangible and financial assets and all other non-current assets.
◆ Non-current liabilities defined as opposed to current liabilities include any liability that will not be settled within a normal operating cycle and within twelve months.

Consolidated Income Statement

(In € millions)	Notes	Half-year 2023	Half-year 2022
Revenue	4	2,545	2,006
Other operating income	4	53	30
Consumables	4	(402)	(309)
Personnel costs	5	(496)	(384)
Other operating expenses	4	(831)	(675)
Net allowances to provisions and Impairment of receivables	4 & 8	(6)	34
EBITDA		863	702
EBITDA/Revenue		33.9%	35%
Amortisation, depreciation and impairment of tangible and intangible assets net of reversals	6	(396)	(356)
Share of profit or loss in associates and joint ventures	4	(18)	(6)
Operating income from ordinary activities		449	340
Other operating income and expenses	10	(5)	8
Operating income		444	348
Financial income		378	169
Financial expenses		(517)	(290)
Financial income	9	(139)	(121)
Income before tax		305	227
Income tax expense	11	(110)	(59)
Net results from continuing activities		195	168
Net results from discontinued activities	-	(1)	(1)
Net income		194	167
Net income attributable to the Group		211	160
Net income attributable to non-controlling interests		(17)	7
Earnings per share attributable to owners of the parent company
Basic earnings per share (in €)	7	2.14	1.62
Diluted earnings per share (in €)	7	2.14	1.62
Earnings per share from continuing activities attributable to the Group
Basic earnings per share (in €)	7	2.14	1.62
Diluted earnings per share (in €)	7	2.14	1.62

Consolidated Statement of Comprehensive Income

	Notes	Half-year 2023	Half-year 2022
(In € millions)
Net income		194	167
Other comprehensive income for the period:
Translation adjustments	7.1	(21)	82
Effect of IAS 29 - Hyperinflation of fully consolidated entities	7.1	3	11
Effect of IAS 29 - Hyperinflation of associates, net after income tax	7.1	7	17
Change in fair value of cash flow hedges		(1)	57
Income tax effect of above items		1	(9)
Share of other comprehensive income of associates, net after income tax		(16)	(18)
Recyclable elements to the consolidated income statement		(27)	140
Actuarial gains/losses in benefit obligations of fully consolidated entities		(6)	70
Income tax effect of above items		1	(18)
Actuarial gains/losses in benefit obligations of associates		(7)	(3)
Non-recyclable elements to the consolidated income statement		(12)	49
Total comprehensive income for the period		155	356
attributable to non-controlling interests		(34)	84
attributable to the Group		189	272

Consolidated Statement of Financial Position

Assets

(In € millions)	Notes	As at 30 Jun, 2023	As at 31 Dec, 2022
Intangible assets	6	2,915	3,004
Property, plant and equipment	6	8,342	8,253
Investment property	6	616	621
Investments in associates	4	1,774	1,879
Other non-current financial assets	9	1,215	668
Deferred tax assets	11	34	42
Non-current assets		14,896	14,467
Inventories	4	127	133
Contract assets		-	4
Trade receivables	4	1,113	938
Other receivables and prepaid expenses	4	382	307
Other current financial assets	9	207	237
Current tax assets	11	31	121
Cash and cash equivalents	12	2,251	2,631
Current assets		4,111	4,371
Assets held for sales	3	43	7
Total assets		19,050	18,845

Shareholders' equity and liabilities

(In € millions)	Notes	As at 30 Jun, 2023	As at 31 Dec, 2022
Share capital		297	297
Share premium		543	543
Treasury shares		(38)	(40)
Retained earnings		3,385	3,408
Other equity items		(205)	(183)
Shareholders' equity - Group share		3,982	4,025
Non-controlling interests		789	830
Shareholders' equity	7	4,771	4,855
Non-current debt	9	8,365	8,763
Provisions for employee benefit obligations (more than one year)	5	401	386
Other non-current provisions	8	57	56
Deferred tax liabilities	11	431	433
Other non-current liabilities	8	782	960
Non-current liabilities		10,036	10,598
Contract liabilities		2	2
Trade payables and other payables	4	822	909
Other debts and deferred income	4	1,350	1,171
Current debt	9	2,016	1,233
Provisions for employee benefit obligations (less than one year)	5	29	56
Other current provisions	8	12	6
Current tax liabilities	11	12	15
Current liabilities		4,243	3,392
Total equity and liabilities		19,050	18,845

Consolidated Statement of Cash flows

(In € millions)	Notes	Half-year 2023	Half-year 2022
Operating income		444	348
Income and expense with no impact on net cash	12	393	244
Net financial expense other than cost of debt		(21)	17
Operating cash flow before change in working capital and tax		816	609
Change in working capital	12	(106)	22
Tax expenses		(28)	(11)
Impact of discontinued activities		(1)	1
Cash flows from operating activities		681	621
Purchase of tangible assets, intangible assets and investment property	12	(353)	(270)
Change in debt and advances on asset acquisitions		(38)	(104)
Acquisitions of subsidiaries and investments (net of cash acquired)	12	(81)	(397)
Proceeds from sale of subsidiaries (net of cash sold) and investments	12	10	11
Change in other financial assets		(472)	(18)
Proceeds from sale of property, plant and equipment		2	4
Proceeds from sale of non-consolidated investments		92	-
Dividends received	12	61	10
Cash flows from investing activities		(779)	(764)
Proceeds from long-term debt	9	306	340
Repayment of long-term debt	9	(134)	(564)
Repayments of lease liabilities and related financial charges		(10)	(10)
Capital grants received in the period		2	10
Revenue from issue of shares or other equity instruments		-	(2)
Net purchase/disposal of treasury shares		(1)	-
Dividends paid to shareholders of the parent company	7	(309)	-
Dividends paid to non-controlling interests in the subsidiaries		(8)	(7)
Change in other financial liabilities		1	12
Interest paid		(162)	(174)
Interest received		38	(2)
Impact of discontinued activities		-	-
Cash flows from financing activities		(277)	(397)
Impact of currency fluctuations		(6)	8
Change in cash and cash equivalents		(381)	(532)
Net cash and cash equivalents at beginning of the period		2,630	2,378
Net cash and cash equivalents at end of the period	12	2,249	1,846
of which Cash and cash equivalents		2,251	1,847
of which Bank overdrafts		(2)	(1)

Flow from investing activities : €331 million for the Gil & GAL merger project in India

Flow from financing activities : €309 million dividend payment

(In € millions)	Half-year 2023	Half-year 2022
Net financial debt at beginning of period	7,440	8,011
Change in cash	392	532
(Proceeds from)/repayment of loans	162	(234)
Other changes	95	-
of which (debts)/surpluses transferred during business combinations	2	1
Change in net financial debt	649	298
Net financial debt at end of period	8,089	8,309

Consolidated Statement of Changes in Equity

Number of shares	(In € millions)	Share capital	Share premium	Treasury shares	Retained earnings	Other equity items	Group share	Non controlling interests	Total
98,960,602	As at 1 Jan, 2022	297	543	(1)	2,936	(259)	3,516	660	4,176
	Net income	-	-	-	160	-	160	7	167
	Other equity items	-	-	-	-	112	112	77	189
	Comprehensive income - Half-year 2022	-	-	-	160	112	272	84	356
	Dividends paid	-	-	-	-	-	-	(7)	(7)
	Other changes*	-	-	-	(53)	52	(1)	25	24
98,960,602	As at 30 June 2022	297	543	(1)	3,043	(95)	3,787	762	4,549

98,960,602	As at 1 Jan, 2023	297	543	(40)	3,408	(183)	4,025	830	4,855
	Net income	-	-	-	211	-	211	(17)	194
	Other equity items	-	-	-	-	(22)	(22)	(17)	(39)
	Comprehensive income - Half-year 2023	-	-	-	211	(22)	189	(34)	155
	Treasury share movements	-	-	2	-	-	2	-	2
	Dividends paid	-	-	-	(309)	-	(309)	(8)	(317)
	Change in consolidation scope	-	-	-	75	-	75	-	75
98,960,602	As at 30 June 2023	297	543	(38)	3,385	(205)	3,982	789	4,771

Details of change is consolidated shareholder's equity and the detail of other equity items (including significant translation adjustments from GMR Airports Limited shares) are given in note 7.

* Mainly transfer from translation adjustments in reserves to retain earnings.

** Corresponds to equity transaction with minority shareholders of 49% and 50% of Extime Duty Free Paris and Extime Media for €74 million.

NOTE 1 Basis of preparation of consolidated financial statements

1.1 Basis of preparation of financial statements

Statement of compliance

The interim condensed consolidated financial statements at 30 June 2023 have been prepared in accordance with the international financial reporting standard IAS 34 - Interim Financial Reporting. They do not contain all of the information required for full annual financial statements should be read in conjunction with the Group's consolidated financial statements for the year ended 31 December 2022.

Aéroports de Paris SA (hereafter "the Company") is a company housed in France. The Group's shares have been traded on the Paris stock exchange since 2006. Aéroports de Paris SA is listed on Euronext Paris Compartment A.

The accounting principles used to prepare the consolidated financial statements at 30 June 2023, are identical to those adopted for the year ended 31 December 2022 with the exception of standards changes described in note 1.3

The condensed interim consolidated financial statements of the Group as at and for the first six months ended 30 June 2023 comprise the Company and its subsidiaries (the whole of which is referred to as "the Group"). With regard to the financial statements of GMR Airports Ltd closed on 31 March, the Group uses the situation as of 31 March in accordance with IAS 28.33-34 and takes into account the significant effects between this date and 30 June.

The condensed interim consolidated financial statements were approved by the Board of Directors on 27 July 2023.

The consolidated financial statements currency is euro. The values in the tables are in millions of euros. The use of rounded figures may sometimes leads to an insignificant gap on the totals or the variations.

Seasonality

Group's revenue and operating income on main segments is subject to seasonal effects, in particular:

Aviation activities follow the same trend of passenger traffic with a peak activity that occurs between May and September, and ;
Retail & Services activities, which follow the evolution of passenger traffic as well but also the evolution of passenger expenses in terminal's shops which are more important around Christmas holidays.

Basis for the preparation of the financial statements

Preparing financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions which affect the application of accounting policies and the amounts of assets and liabilities, income and expenses or disclosures in the notes.

The underlying estimates and assumptions are based on historical experience and on the basis of the information available, or situations prevalent at the date of preparation of the accounts. Depending on changes in those assumptions and situations, estimated amounts accounted in the financial statements could differ from actual values.

The significant estimates used for the preparation of the financial statements relate mainly to:

The measurement of the recoverable value of intangible assets, property, plant and equipment and investment properties (see note 6) and other non-current assets, in particular investments accounted for using the equity method (see note 4.9);
The measurement of the fair value of assets acquired and liabilities assumed in the context of a business combination;
The qualification and valuation of employee benefits (pension plans, other post-employment benefits and termination benefits) (see note 5);
The valuation of the fair value of investment properties (see note 6.3.2);
The measurement of provisions for risks and disputes (see note 8);
The valuation of non capitalized carry-forward tax losses (see note 11);
Valuation of receivables (see note 4.4);

In addition to the use of estimates, the Group's Management has made use of its judgment when certain accounting issues are not dealt with precisely by the standards or interpretations in force.

The Group has exercised its judgment to:

Analyze and assess the nature of the control (see note 3.1);
Determine whether agreements contain leases (see note 6.2.1);

1.2 Environmental policy

In 2022, the Group deployed an environmental policy, whose markers are an ambition beyond the scope of direct responsibility, an expansion beyond the impact in operation (life cycle), and an inclusive logic with the territories. This environmental policy covers 22 Groupe ADP airports around the world.

The four strategic axes of this policy are as follows:

Aim for operations with zero impact with compensation) on the environment, aiming for example for carbon neutrality by 2030 for all signatory airports or by reducing the biodiversity footprint in our value chain;

Actively participate in the environmental transition in the aviation sector and in particular offer airside solutions. For example, Paris Aéroport is already prepared for the arrival of sustainable alternative fuels on its territory, acts for their greater deployment and is committed to the development of hydrogen aircraft to enable the advent of carbon-free aviation by the middle of the century;
Promote the integration of each airport into a system of local resources: by favoring short circuits, by encouraging the circular economy and by developing the production of resources on site (geothermal heating network, solar panels, valorization of building materials etc.);
Reduce the environmental footprint of airport development and development projects (sober design, low-carbon construction and renovation of infrastructure and buildings).

Among the key commitments of this new policy, the Group's ambition is to become a carbon-neutral territory by 2050.

The Group already takes these environmental objectives into account when defining future investments and determining the significant estimates and judgments presented above in the preparation of the financial statements.

ADP Group teams are fully mobilized to implement "2025 Pioneers", the 2022-2025 strategic roadmap for building a sustainable airport model.

In 2022, the ADP Group was stepping up the pace of lowcarbon construction, as demonstrated by the use of a composite structure and recycled concrete for work on runway 1 at Paris-CDG, the reuse of materials for the redevelopment of Terminal 1, the use of calcined clay for work on access roads at Paris-Orly, and the use of electric and hydrogen-powered machines on worksites (waterproofing work on retention basins at Paris-CDG).

On the occasion of the Paris Air Forum and the Salon International de l'Aéronautique et de l'Espace de Paris held from 19 to 25 June, 2023, the ADP Group announced the materialization of several projects that are part of the active approach deployed by the group to support the decarbonization of the sector :

Air Liquide and ADP Group announced on 16 June, 2023 the creation of "Hydrogen Airport", an engineering and consulting joint venture specialized in supporting airports in their projects to integrate hydrogen into their infrastructures. The joint venture has begun its commercial activities, and its management team has taken up its duties.
The ADP Group and Volocopter, alongside the Direction Générale de l'Aviation Civile and the Ile-de-France Region, have confirmed, in a joint press release dated 20 June, 2023, that all the conditions have been met for the launch of the first eVTOL

(electric vertical takeoff and landing aircraft) services over the skies above Paris on the occasion of the 2024 Olympic and Paralympic Games.

The ADP Group announced on 21 June, 2023 that it had joined forces with six leaders in decarbonized regional aviation to accelerate the arrival before 2030 of 2 to 100-seat electric- or hydrogen-powered aircraft at its airfields and at Paris-Le Bourget, Paris-Orly and Paris-Charles de Gaulle airports. These new aircraft are preparing to decarbonize flights around aerodromes, and to operate radial, regional and short-haul routes in Europe.

1.3 Accounting policies

Adopted IFRS as endorsed by the EU

The Group's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union as at 30 June 2023.

These standards are available on the European Commission's web site at the following address:

http://ec.europa.eu/finance/company-reporting/ifrs financial-statements/index\_en.htm

These accounting principles do not differ from the International Financial Reporting Standards issued by the IASB, insofar as the standards and interpretations published by the IASB, but have not yet been approved by the European Union, do not have any significant impact on the consolidated financial statements of Groupe ADP.

Standards, amendments and interpretations adopted by the European Union and mandatory for fiscal years beginning on or after 1 January 2023

The amendments of mandatory application standards from 1 January 2023 and not applied in advance correspond to :

◆ IAS 1, Disclosure of accounting policies (adopted by Europe in March 2022). These amendments are intended to help entities identify the useful information to provide to users of financial statements on accounting methods. Companies must now provide information on significant accounting methods rather than on the main accounting methods.
◆ Amendments to IAS 12 "Income Taxes": Deferred Taxes Related to Assets and Liabilities Resulting from the Same Transaction (adopted by Europe in March 2022). The objective of the amendments is to reduce diversity in the recognition of deferred tax assets and liabilities generated by leases and decommissioning obligations. Indeed, companies have until now been uncertain as to whether the deferred tax recognition exemption applied to transactions such as leases and decommissioning obligations,

transactions for which companies recognize both an asset and a liability. The amendments clarify that the exemption does not apply and that companies are required to recognize deferred tax on these transactions.

◆ Amendments to IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" (adopted by the EU in March 2022) to facilitate the distinction between accounting policies and accounting estimates. These amendments provide a new definition of an accounting estimate as well as new examples of accounting estimates.

These texts and improvements mentioned above have no significant impact on the Group's consolidated financial statements.

Standards, amendments and interpretations in the process of being adopted or adopted by the European Union and mandatory for fiscal years beginning after 1 January 2023 and not anticipated by Groupe ADP.

The Group has not applied the following amendments that are not applicable on 1 January 2023 but should subsequently be mandatory:

◆ Amendments to IAS 1 Presentation of financial statements:
- Classification of liabilities as current or non-current – Postponement of the date of entry into force. The amendments in question postpone the date of entry into force of the changes to the classification of liabilities as current and noncurrent liabilities published in January 2020 to fiscal years beginning on or after 1 January 2023. Indeed, on 23 June 2021, the IASB has provisionally decided to postpone the date of entry into force until 1 January 2024 at the earliest. They will apply subject to their adoption by Europe;
Non-current liabilities with covenants. These amendments clarify that if the right to defer settlement for at least twelve months is subject to the fulfillment of conditions after the closing date, these conditions do not affect the existence of the right to defer settlement at the end of the reporting period (closing date) for purposes of classifying a liability as current or non-current; The amendments come into force for fiscal years beginning on or after 1 January 2024 subject to its adoption by Europe.
◆ Amendments to IFRS 16 Leases. On 22 September 2022, the International Accounting Standards Board (IASB) issued an Exposure Draft of Lease Obligations Arising from a Sale-Leaseback (Amendments to IFRS 16) to clarify the method to be employed by the seller-lessee for the subsequent measurement of sale-leaseback transactions that meet the requirements in IFRS 15 to be accounted for as sales. The amendments apply to financial years beginning on or after 1 January 2024 subject to its adoption by the EU.

Analyzes of the impact of the application of these amendments are in progress.

In May 2023, the IASB published the "International Tax Reform-Pillar Two Model Rules" amendment to IAS 12 concerning the accounting treatment of income taxes. However, this amendment cannot be applied as it has not yet been approved by the European Union. Approval is not expected before October 2023.

The international tax reform drawn up by the OECD, known as "Pillar 2", aimed in particular at establishing a minimum tax rate of 15%, is due to come into force in France from the 2024 financial year. The ADP Group has initiated a project to identify the impacts and organize the processes needed to comply with its obligations. The final terms of implementation are expected in the second half of 2023. Work is therefore in progress and will be presented in the financial statements at 31 December 2023.

NOTE 2 Significant events

Traffic at airports operated by the ADP Group

In 2023, the ADP Group welcomed 155 million passengers across its network of airports, including 47 million passengers at Paris Airport, representing a traffic recovery rate compared to 2022 in line with forecasts, at 30.3% for the Group and 25.7% for Paris Airport respectively.

The table below shows the traffic situation at the main airports operated by the ADP Group or through equity affiliates during 2023.

Airports	June 2023 traffic @100% in millions PAX*	Evolution in % vs 30 June, 2022	Level compared to 30 June 2019 in %
France
Paris Aéroport (CDG+ORY)	47.1	+ 25.7%	90.0%
International
Fully consolidated concessions
Ankara Esenboga - TAV Airports	5.5	+ 39.9%	78.6%
Izmir - TAV Airports	4.7	+ 11.0%	81.1%
Amman	4.4	+ 33.9%	104.9%
Almaty - TAV Airports	4.2	+ 37.1%	150.0%
Equity method concessions
Santiago du Chili	11.1	+ 27.5%	88.5%
Antalya - TAV Airports	12.9	+ 26.5%	95.7%
Zagreb	1.7	+ 30.3%	110.4%
Médine	4.7	+ 69.3%	113.5%
New Delhi - GMR Airports Ltd	35.8	+ 31.5%	109.8%
Hyderabad - GMR Airports Ltd	11.9	+ 36.4%	108.1%

*All departing, arriving and transiting passengers welcomed by the airport

Contemplated merger between GIL & GAL

The Boards of Directors of Aéroports de Paris (Groupe ADP) and GMR Airports Infrastructure Ltd (GIL), both listed companies and co-shareholders of a respectively 49% and 51% stake in the airport holding GMR Airports Ltd (GAL), have announced on 19 March 2023 the signature of a framework agreement between Groupe ADP, GIL, GIDL, GAL, GMR-E initiating a process that should lead to a merger between GIL, GIDL and GAL in the first half of 2024 ("New GIL") (See note 4.9)

The contemplated merger will allow Groupe ADP to:

◆ have, via a shareholders' agreement, extended governance rights in New GIL, similar to those held today in GAL, preserving its significant influence.
◆ hold an economic interest estimated at 45.7% in an airport holding company listed on the BSE Limited and the National Stock Exchange of India Limited ("Indian financial markets"). This estimate was made on the basis of independent valuations and supported by fairness opinions and takes into account the final settlement of the earn-out clauses entered into during the initial acquisition of GAL in 2020 and a liquidity premium. Groupe ADP's stake in New GIL (45.7%) will be split into two categories of equity instruments:
- Ordinary shares (i.e. 32.3% of the share capital and an interest of 25.91% on a basis including the OCRPS below), and
- Non-participating convertible preferred shares (OCRPS - Optionally Convertible Redeemable Preferred Shares), which give right to a dividend equivalent to one ordinary share ((i.e. an interest rate of 19.79% on an including the OCRPS basis).

In view of this merger and in order to accelerate the settlement of certain GIL liabilities, Groupe ADP subscribed to all the convertible bonds (FCCBs - Foreign Currency Convertible Bonds) issued by GIL on 25 March 2023, for an amount of €331 million (i.e. 330,817 bonds with a nominal unit value of €1,000).

On the same date, Groupe ADP :

◆ granted GMR-E an option allowing it to buy the FCCBs from Groupe ADP at any time in one or more tranches (sale of a call option corresponding to a passive derivative), and
◆ has, at the end of the first 5 years following the date of allocation of the FCCBs, or a period of 30 months in the event of non-completion of the merger operation between GIL and GAL, the right to exercise a put option to GMR-E, or a foreign third party designated by GMR-E, on all of the FCCBs (purchase of a put option corresponding to an active derivative).

The exercise price of these aforementioned options is the sum of the nominal amount and accrued interest.

On 25 March 2023 (ie. subscription date), the FCCBs were recognized as non-current financial assets and measured at fair value for an amount of €511 million. The call option held by GMR-E (derivative liability) and the put option held by ADP (derivative asset) were recorded at their fair value respectively for €203 million and €22 million. The impact on income is nil on this date, the sum of the fair values of these instruments being equal to the price paid, i.e., €331 million. Since that date, the change in the fair value of these instruments totals €7 million and has been recognized in financial income, the net impact after deferred tax was €5 million.

In addition, the agreements provide for the early settlement of the earn-out clauses entered into during the initial acquisition of GAL in 2020. The earn-out debt of an amount of €62 million at 30 June 2023 was thus adjusted by offsetting financial income for an amount of €5 million over the current period.

This merger proposal does not involve an exchange of substantially different securities, as most of the fair value of GIL is attributable to GAL. Consequently, the financial impact of the merger will correspond to the cost of the listing service, which will be equal to the cumulative dilution of 3.3% in GAL's net assets (from 49% to 45.7% interest) and 45.7% of the fair value of GIL's net assets excluding GAL at the merger date. This impact will not be known until the merger date.

At this stage, the merger is expected to become effective in the first half of 2024. However, this is not a certainty, as it depends on the fulfilment of a number of formal and substantive conditions that have not yet been met, such as authorisation by SEBI (Securities and Exchange Board of India), submission to and approval by the NCLT (National Company Law Tribunal), approval by the shareholders of the parties involved in the merger, and submission of the merger application to the Stock Exchange.

Renewal of the Ankara airport concession

As a reminder, in December 2022, TAV Airports won the tender for the renewal of the Ankara Airport concession. The purpose of the concession is to make investments to increase the

capacity of the airport in exchange of the right to operate it for 25 years, between 24 May 2025 and 23 May 2050. The current operating terms of Ankara Airport, managed by TAV Esenboğa, a 100% owned subsidiary of TAV Airports, a member of the ADP Group, remain unchanged until 23 May 2025. This concession will give rise to the recognition of an intangible asset corresponding to the right to operate, unlike the current concession which is recognized as a financial receivable in accordance with IFRIC 12.

During the first half of 2023, TAV Ankara (a company wholly owned by TAV Airports) proceeded to sign the concession renewal contract and made the payment of €119 million to the Turkish Civil Aviation Authority (Devlet Hava Meydanları Isletmesi or DHMI), corresponding to 25% of the total rent in accordance with the tender specifications. This amount is recorded in the Group's consolidated financial statements included in other non-current financial assets.

Olympic Games partnership

The ADP Group, the world's leading airport operator, has become an Official Partner of the Paris 2024 Olympic and Paralympic Games. The group will put its expertise in terms of hospitality at the service of the athletes, the Olympic family and spectators from around the world.

To this end, the ADP Group's responsibility in the context of this partnership will include preparing the operational management of routes and baggage, implementing work to adapt our infrastructures, improving accessibility on our platforms, with particular and renewed attention paid to people with disabilities.

TAV Airports sells part of its stake in Medina airport

On 22 June, 2023, the Board of Directors of TAV Airports approved the sale of 24% of the capital of Tibah Airports Development, a company operating Medina airport in Saudi Arabia, in which TAV Airports holds a total stake of 50% and which is accounted for by the equity method in the Group's financial statements.

Following this decision, the equity-accounted shares concerned, together with the balance attributable to these securities of the shareholder loan granted to Tibah, by TAV Airports, for the part concerned, have been reclassified as assets held for sale within the meaning of IFRS 5 at 30 June, 2023.

Details of this investment are provided in subsequent events (see note 16).

Employee shareholding plan

As part of its "2025 Pioneers" strategic roadmap, Aéroports de Paris has launched a new exceptional employee shareholding operation in 2023, the ABELIA operation.

One of the objectives of the "Shared Dynamics" section of the "2025 Pioneers" strategic plan is to carry out at least one employee shareholding operation by 2025 (ADP S.A. scope).

This ABELIA operation therefore began with a free share allocation plan, in accordance with the provisions of articles L. 225-197-1 to L. 225-197-5 of the French Commercial Code. The shares allotted are existing ADP shares.

On 21 June 2023, the Board of Directors of Aéroports de Paris S.A. granted each employee with 3 months' seniority the right to acquire 3 free shares in the company.

This allocation of free shares will only become definitive at the end of a one-year vesting period, i.e. on 24 June 2024. No presence or performance conditions are required to make this acquisition definitive. Employees will therefore hold the shares granted by the Board of Directors from the vesting date of 24 June 2024.

Before the expiry of the vesting period, Aéroports de Paris employees will be asked by the account holder AMUNDI ESR - manager of the Free Share Allocation Plan - how they wish to hold their shares (2 possible choices):

either direct, individual holding in a pure registered share account (with a one-year holding requirement)
Indirect, collective holding, by transferring the shares to the Group Savings Plan. The shares obtained in exchange will be blocked for 5 years. In return, employees who make this choice will benefit from the PEG's advantageous tax regime, as well as a gross employer's contribution of 260% on this contribution, which constitutes a voluntary payment into the PEG. Taking into account the CSG-CRDS deduction, this net contribution should correspond to around 7 additional shares. By opting for the PEG, around 10 shares will be contributed to the FCPE ADP ACTIONNARIAT SALARIE on 24 June 2024

The impact of this transaction on income as at 30 June 2023 is -€4 million.

Sale of Extime Duty Free Paris shares

The ADP Group has launched a public consultation on its Duty Free & Retail activities for Paris-Charles de Gaulle and Paris-Orly airports. Lagardère Travel Retail has been chosen to become the ADP Group's co-partner in Extime Duty Free Paris, as part of the roll-out of the Extime hospitality and retail brand.

Extime Duty Free Paris will operate around 140 beauty, gourmet, technical and fashion outlets. Subject to the approval of the relevant competition authorities, it will be owned 51% by the ADP Group and 49% by Lagardère Travel Retail.

The impact of the transaction is recognized directly in equity for €71 million.

Sale of Extime Média shares

Following a public consultation, the ADP Group has chosen to retain JCDecaux as a co-shareholder in Extime Media, which will operate advertising activities at Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget airports, as well as, in a second phase, at international airports.

Extime Media will be equally owned by the ADP Group and JCDecaux. It will primarily operate and market advertising displays at the above-mentioned airports, and will operate under the Extime X JCDecaux brand.

The impact of the transaction is recognized directly in equity for €3 million.

NOTE 3 Scope of consolidation

3.1 Accounting principles related to the scope

The accounting principles related to the scope are identical to those applied at 31 December 2022 (cf. statement of compliance in note 1.1). For more information on these principles, refer to the complete annual financial statements.

3.2 Changes in the scope of consolidation

3.2.1 Main changes in the scope of consolidation for 2023

Changes in the scope of consolidation of the year are the following:

◆ Sales of Hubsafe and Sogeag shares

In 2022, the ADP Group and Samsic agreed to exercise the put option on the remaining 20% of the share capital of Hubsafe, a company specialized in airport security. The sale of these shares to Samsic took place at the end of March 2023. Concerning Sogéag, the company operating the airport of Guinea Conakry, the transfer of shares is effective since the beginning of April 2023.

These shares, previously classified as assets held for sale in the amount of €7 million, have now been sold for a total of €12 million.

◆ Creation of Hydrogen Airport held in partnership with Air Liquide (Hydrogen Company) and ADP International, a wholly owned subsidiary of ADP SA.

The purpose of the Company is, in France and abroad, to carry out consulting studies on the opportunity and feasibility of setting up hydrogen distribution infrastructures in airports; to carry out engineering studies of hydrogen distribution infrastructures in airports; to invest in hydrogen distribution infrastructures in airports, and/or to operate such infrastructures.

This investment will be accounted using the equity method.

◆ Creation of Hub One DATA TRUST, 60% owned by ADP SA

Hub One DATA TRUST is a secure platform for sharing and exploiting data in the airport industry. Its purpose, directly or indirectly, in France and abroad, is to carry out all operations relating to the following activities:

The provision of data intermediation services, aimed at providing data intermediation services between data holders, including the provision of the technical or other means required to enable the provision of said services;
All industrial, commercial, financial, real estate and personal property transactions directly or indirectly related to the corporate purpose;
The company's participation in any existing or future businesses or companies that may be related to the corporate purpose.

This investment will be fully consolidated.

3.2.2 Reminder of the changes in the scope for 2022 on the first semester

The main changes in the scope of consolidation during the first half of the 2022 financial year were as follows :

◆ ADP Group exercises put option on shares held in Airport Terminal Operations LTD

Following the non-renewal on 31 December 2021 of the technical assistance contract (TSA) between ADP International and Airport Terminal Operations LTD (ATOL), the company operating the airport in Mauritius, the group exercised, on 7 January 2022 the put option of the shares held by ADP International in the capital of ATOL as provided for in the agreements binding the shareholders of this company. The sale of these shares was completed on 28 January 2022 and resulted in a sale result of €6 million net of tax booked in share of profit or loss in associates and joint ventures.

NOTE 4 Information concerning the Group's operating activities

4.1 Segment reporting

In accordance with IFRS 8 "Operating segments", segmental information described below is consistent with internal reporting and segment indicators presented to the Group's operation decision maker (the CEO), in order to take decisions concerning resources to be dedicated to the different segments and to evaluate the performance.

The segments identified in the Groupe ADP in five activities are as follows:

Aviation: this segment includes all goods and services provided by Aéroports de Paris SA in France as an airport operator. Airport services are mainly paid for by the airport fees (landing, parking and passengers), ancillary fees (check-in and boarding counters, baggage sorting facilities, de-icing facilities and the supplying of electricity to aircraft, etc.) and the revenue from security and airport safety services such as security checkpoints and screening systems, aircraft rescue and fire-fighting services.

Retail and services: this segment is dedicated to retail activities in France provided to the general public. It includes rental income from retail activities in terminals (retails shops, bars and restaurants, banks and car rentals), activities involved in commercial distribution (Extime Duty Free Paris and RELAY@ADP), revenue from advertising (Extime Media (ex Média Aéroports de Paris)) and restaurants (EPIGO and Extime Food & Beverages Paris), revenue from car parks, rental revenue, leasing of space within terminals and revenue from industrial services (production and supply of heat, drinking water, access to the chilled distribution networks…). This segment also includes the agreement related to the construction of the Paris-Orly metro station on behalf of the company "Société du Grand Paris".

Real estate: this segment includes all the Group's mainly in France property leasing services except for operating leases within airport terminals. These activities are operated by Aéroports de Paris SA and dedicated subsidiaries, or investments in associates and joint ventures and encompass the construction, commercialisation and lease management of office buildings, logistic buildings and freight terminals. This segment also includes the rent of serviced land.

International and airport developments: this segment includes subsidiaries and holdings which design and operate airport activities and are managed together to create synergies and support the Group's ambition. It includes TAV Airports, GMR Airports group, ADP International and its subsidiaries, including AIG, and the ADP Ingénierie sub-group (including Merchant Aviation LLC).

Other activities: this segment comprise all activities carried out by Aéroports de Paris SA subsidiaries, which operate in areas as varied as telecoms (Hub One) and cybersecurity services (Sysdream). This operating segment also includes project entities Gestionnaire d'Infrastructure CDG Express and Hydrogen Airport consolidated under equity method. This segment also includes the activities dedicated to the Group's innovation via the company ADP Invest.

Key indicators used and reviewed internally by the operation decision-maker of the Group are:

Revenue;
EBITDA;
Amortisation, depreciation and impairment of tangible and intangible assets;
Share of profit or loss in associates and joint ventures;
Operating income from ordinary activities.

Revenue and net income of Groupe ADP break down as follows:

		Revenue	EBITDA
(In € millions)	Half-year 2023	of which inter-sector revenue	Half-year 2022	of which inter-sector revenue	Half-year 2023	Half-year 2022
Aviation	919	1	741	-	224	186
Retail and services	818	103	625	92	345	250
Including Extime Duty Free Paris	344	-	254	-	(2)	(3)
Including Relay@ADP	52	-	39	-	6	6
Real estate	167	22	156	24	109	91
International and airport developments	709	8	538	2	167	163
Including TAV Airports	558	-	410	-	145	127
Including AIG	126	-	104	-	34	31
Other activities	90	24	83	19	18	12
Eliminations and internal results	(158)	(158)	(137)	(137)	-	-
Total	2,545	-	2,006	-	863	702

	Amortisation, depreciation and Share of profit or loss in impairment of tangible associates and joint and intangible assets net ventures of reversals*			Operating income from ordinary activities
(In € millions)	Half-year 2023	Half-year 2022	Half-year 2023	Half-year 2022	Half-year 2023	Half-year 2022
Aviation	(187)	(179)	-	-	37	7
Retail and services	(69)	(67)	-	-	276	183
Including Extime Duty Free Paris	(4)	(6)	-	-	(5)	(9)
Including Relay@ADP	(1)	(2)	-	-	5	5
Real estate	(30)	(34)	2	1	81	57
International and airport developments	(100)	(66)	(22)	(7)	45	90
Including TAV Airports	(76)	(49)	6	5	74	83
Including AIG	(23)	(18)	-	-	11	13
Including GMR Airports Ltd	-	-	(33)	(19)	(33)	(19)
Other activities	(10)	(10)	2	-	10	3
Total	(396)	(356)	(18)	(6)	449	340

* including a reversal of impairment for €10 million on international segment in 2022.

Over half-year 2023, Groupe ADP's consolidated revenue amounts to €2,545 million, an increase of 26.8%, mainly due to the traffic recovery on:

Inter-segment eliminations amounted to -€158 million in 2023, compared with - €137 million in June 2022.

◆ Revenues from aviation activities in Paris, up +€178 million to €919 million and from the retail and services segment in Paris, up +€193 million to €818million.
◆ TAV Airports' revenues, which reached €558 million, up +€148 million. Those figures take into account the management company of Almaty airport in Kazakhstan for €194 million for the first half of 2023 in comparison with €142 million for June 2022.
◆ AIG revenues, up +€22 million to €126 million.

FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND 2023 FINANCIAL STATEMENTS

Groupe ADP Consolidated Financial Statements as of 30 June 2023

The breakdown of revenues by country of destination is as follows :

(In € millions)	Half-year 2023	Half-year 2022
France	1,844	1,469
Turkey	214	157
Kazakhstan	197	142
Jordan	126	104
Georgia	46	35
Rest of the world	118	99
Revenue	2,545	2,006

The breakdown of assets by country is as follows :

(In € millions)	Half-year 2023	Half-year 2022
France	14,643	14,020
Turkey	2,682	2,532
Kazakhstan	560	447
Jordan	621	705
Georgia	273	282
Rest of the world	271	451
Total assets	19,050	18,437

4.2 Revenue

Groupe ADP applies IFRS 15 "Revenue from Contracts with Customers" for services offered to its clients and IFRS 16 "leases" for lease contracts as a lessor.

Accounting principles for Groupe ADP's revenues according to its five segments breaks down as follows:

1. Aviation segment

- Airport and ancillary fees of Aéroports de Paris SA: These fees are framed by legislative and regulatory provisions, including in particular the limitation of the overall revenue from airport charges to the costs of services provided and the fair remuneration of the capital invested by Aéroports de Paris assessed with regard to the weighted average cost of capital (WACC) of the regulated scope. Even if the economic regulation of Aéroports de Paris is based preferentially on economic regulation agreements (ERA), the 2023 tariff period takes place in a legal framework outside ERA. In any case, the annual procedure for setting fee rates, with or without ERA, provides for Aéroports de Paris to consult users on the annual price proposal and submit a request for approval to ART ("Autorité de Régulation des Transports"). When the ART is contacted, it ensures, among other things, that the tariffs comply with the general rules applicable to fees.

This regulated scope includes all Aéroports de Paris SA activities at airports in the Paris region with the exception of activities related to retail and services, land and real estate activities that are not aviation-related, activities linked to security and safety financed by the airport tax, the management by Aéroports de Paris SA of assistance with soundproofing for local residents, and other activities carried out by subsidiaries.

Airport fees include fees per passenger, landing fees and parking fees, calculated respectively according to the number of boarded passengers, the weight of the aircraft and parking time. These fees are recorded as revenue when the corresponding services are used by the airline.

Ancillary fees include fees for the provision of facilities such as check-in and boarding desks, baggage sorting facilities and fixed installations for the supply of electricity. They also include fees for support services for disabled people and those with reduced mobility and other ancillary fees linked to check-in and boarding technology, airport circulation (badges), and the use of solid waste shredding and de-icing stations. These fees are recognized as revenue when the corresponding services are used by the airline.

- Revenue from airport safety and security services: Aéroports de Paris SA receives revenue within the context of its public service mission for security, air transport safety, rescue and firefighting of aircrafts. This revenue covers the costs incurred in this mission. It is paid by the Direction Générale de l'Aviation Civile (DGAC) which funds it through the airport security tax levied on airlines companies. Aéroports de Paris SA recognize this revenue up to 94% of eligible costs for these missions when they are incurred. The Group proceeds to an analytical allocation of the costs in order to determine the part incurred in relation with its missions, considering that certain costs may not be exclusive to these missions, notably certain rental costs, certain amortisation and maintenance charges as well as taxes.

2. Retail and services segment

- Revenue from retail and services is comprised of variable rents paid by retail activities (shops, bars and restaurants, advertising, banks and currency exchange, car rental agencies, other terminal rentals) that are accounted for as income for the financial year in which it was generated; and rental income which corresponds to the fixed income received attached to leased areas in airports and is recognised on a straight-line basis over the term of the lease in accordance with IFRS 16 "Lease contracts".

Additionally, revenues from retail and services include:

Revenues of Extime Media (ex Média Aéroports de Paris). This subsidiary offers digital, connected and interactive advertising solutions at Paris airports to advertisers;
retail services from Extime Duty Free Paris, Relay@ADP and Extime food & Beverages Paris generated in the commercial areas managed by these two entities in land side and airside (sell of goods and lease revenues). Extime Duty Free Paris (Ex SDA) exercises the direct management and rental of commercial spaces, and is specialised in

the sale of alcohol, tobacco, perfumes and cosmetics, gastronomy, fashion and accessories and photo-video sound. Relay@ADP's is specialised in press, bookshop, amenities and souvenirs;

▪ and tax refund services revenues.

- Revenue from car parks and access routes concerns mainly the management of car parks and access (roads, shuttles, bus stations etc.) and is recorded when the customer is using the service.

- Revenue from industrial services, such as the production and supply of heat for heating purposes, the production and supply of cool air for air-conditioned facilities and chilled water distribution networks, the supply of drinking water and waste water collection, waste collection and the supply of electrical current. This revenue is accounted for during the period in which the service was provided.

- Revenue from long term contracts, this aggregate includes the revenue related to the construction of a metro station in Paris-Orly on behalf of the company "Société du Grand Paris" and CDG Express construction contract. Revenue is recognized using the percentage of completion method in accordance with IFRS 15 – Revenue from contracts with customers.

3. Real estate segment

- Real estate revenue is comprised of rental income from real-estate shares related to airport activity (except for airport terminals) and diversified real estate. This revenue is derived from operating leases. Fixed payments are on a straight-line basis over the term of the lease in accordance with IFRS 16 (Lease contracts). Rental charges due from tenants are accounted for as rental income. Revenue from Real estate segment also includes interest income from lease contract as lessor.

4. International and airport developments segment

Revenue from this segment combines revenue of TAV Airports, ADP International and its subsidiaries.

Airport fees : Airport fees include passenger fees, aircraft circulation fees, revenues related to the provision of common terminal equipment (CUTE), as well as other revenues (ground handling, fuel charges). Airport fees are recognized based on the daily reports obtained from the related airline companies for terminal service income charged to passengers, as well as for ramps utilized by aircraft and check-in counters utilized by the airlines. These revenues are recognized when it is probable that the economic benefits will be perceived by the Group and that they can be quantified as reliable.
Retail activities : These revenues come mainly from the Concession activities of Catering in terminals by the BTA subgroup, passenger lounge services by the TAV Operations services sub-group as well as the commercial fees collected by AIG at Queen Alia International Airport from Jordan. These revenues are recognized as and when the services rendered are performed.
Car parks and access roads : these revenue result primarily from the car parks, access and valet services operated as part of the concession contracts. They are recognized when the services are provided to the client.
Fixed rental income : rental income is recognized on a straight line basis over the term of the rental contract in accordance with the rental contracts relating to the occupation of space in the terminals.
Revenue from long term contracts : Construction revenue is recognized using the percentage-of-completion method and included in the 'revenue from long term contracts' according to IFRS 15. Variations in contact work, claims and incentive payments are included to the extent that they have been agreed with the customer. Where the outcome of a construction contract cannot be estimated reliably, revenue is recognized to the extent of contract costs incurred that it is probable will be recoverable. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognized as an expense immediately.
Operating financial revenue : it corresponds to the Interest income related to the undiscounting of financial receivable related to the concession of Ankara Esenboga Airport : they are recognized in accordance with IFRIC12 Interpretation over the term of the current concession, which ends in 2025 (see note 6.1).
Other revenue, include primarily :

ground handling services by TAV Operations Services and Havas, bus and car parking operations, airline taxi services. They are recognized when services are provided.
sale of IT solutions and software by TAV Information Technoogies. They are recognized when services are provided or products delivered.
Sale of fuel to airlines by Almaty International Airports in Kazakhstan/ Almaty International Airport. Revenues from this activity are recognized when fuel is sold to airlines. Almaty International Airport retains the risks and rewards of this activity and accounts for the purchase and sale of fuel separately.
revenue related to airport design missions, consultancy services, assistance to the project owner and prime contractor: these services are mainly carried by ADP Ingénierie out internationally over periods covering several months and/or years. The income from these long-term services are for the majority recognized contracts in according with the method of progress through costs.
revenue generated by ADP International, mainly related to its international airport management activity and related to the investment securities in the airport companies.

5. Other activities segment

Revenue from this segment comprises revenue generated by the subgroup Hub One. Hub One offers telecom operator services, as well as traceability and mobility solutions of goods. Its revenue is presented in other incomes.

	Half-year 2023
(In € millions)	Aviation	Retail and services	Real estate	International and airport developments	Other activities	Total
Airport fees	543	-	-	330	-	873
Ancillary fees	119	-	-	8	1	128
Revenue from airport safety and security services	238	-	-	-	-	238
Retail activities (i)	-	515	2	120	-	637
Car parks and access roads	-	83	-	11	-	94
Industrial services revenue	-	26	-	3	-	29
Fixed rental income	8	55	137	20	-	220
Ground-handling	-	-	-	140	-	140
Revenue from long term contracts	-	23	-	10	5	38
Operating financial revenue	-	-	6	(1)	-	5
Other revenue	10	13	-	60	60	143
Total	918	715	145	701	66	2,545
(i) of which Variable rental income	-	149	2	58	-	209

The breakdown of the Group's revenue per segment after eliminations is as follows:

The ADP Group's consolidated revenues will amount to €2,545 million in June 2023, up +539 million euros compared to June 2022, mainly due to:

◆ The increase in revenues from the Aviation segment, which corresponds to the airport activities carried out by Aéroports de Paris as manager of the Paris hubs, from aeronautical fees (per passenger, landing and parking fees) linked to the increase in passenger traffic and aircraft movements. As revenues related to airport security and safety are determined by the partially fixed costs of these activities, revenues are growing at a lower rate than passenger traffic;

◆ The increase in revenues from the Retail and Services segment related to the Paris hubs, linked to the number of sales outlets opened compared to June 2022.
◆ The increase in revenues in the International and airport development segment due to TAV Airports and AIG, driven by passenger traffic and the commercial revenues over 2023.

	Half-year 2022
(In € millions)	Aviation	Retail and services	Real estate	International and airport developments	Other activities	Total
Airport fees	434	-	-	245	-	679
Ancillary fees	92	6	-	7	1	106
Revenue from airport safety and security services	198	-	-	-	-	198
Retail activities (i)	-	367	1	92	-	460
Car parks and access roads	-	67	-	8	-	75
Industrial services revenue	-	24	-	2	-	26
Fixed rental income	7	47	124	18	-	196
Ground-handling	-	-	-	95	-	95
Revenue from long term contracts	-	15	-	12	1	28
Operating financial revenue	-	-	6	-	-	6
Other revenue	10	7	1	57	62	137
Total	741	533	132	536	64	2,006
(i) of which Variable rental income	-	103	1	46	-	150

The breakdown of the Group's revenue per major client (higher than €10 million) is as follows:

	Half-year 2023	Half-year 2022
(In € millions)
Revenue	2,545	2,006
Air France	418	356
Turkish Airlines	69	53
Easy Jet	47	39
Royal Jordanian	34	28
Federal Express Corporation	25	24
Qatar Airways	27	18
Vueling Airlines	22	17
Pegasus Airlines	28	16
Emirates	14	13
AIR ASTANA	18	12
Other airlines	543	371
Total airlines	1,245	947
Direction Générale de l'Aviation Civile	247	206
ATU	28	21
Société du Grand Paris	24	17
Other customers	1,001	815
Total other customers	1,300	1,059

4.3 Other current operating income

Other current operating income mainly includes indemnities, operating grants, the share of investment grants transferred to operating income at the same pace as depreciation of subsidized assets and the gain on return to full ownership of assets at the end of construction leases (see Note 6.3).

The breakdown of other current operating income is as follows:

(In € millions)	Half-year 2023	Half-year 2022
Return to full ownership of assets from construction leases*	8	5
Operating subsidies	2	2
Investment grants recognized in the income statement	2	2
Net gains (or losses) on disposals	(1)	1
Other income	42	20
Total	53	30

*Construction leases/Temporary Occupation Authorization.

Over 2023, other income include:

◆ On the one hand, the sale of surplus electrical capacity by Aéroports de Paris, representing proceeds of €17 million in the first half of 2023
◆ And on the other hand, compensation recognized for €20 million related to the compensation agreement concluded with the Société Grand Paris for the construction project of a metro station at Paris-Orly and the CDG Express project

As a reminder, in June 2022 other income included:

◆ On the one hand, returns to full ownership of assets from construction leases on the Paris-Charles de Gaulle and Le Bourget platform for an amount of nearly €5.4 million, including:

a real estate occupied by Air France et Kuwait Petroleum
a real estate occupied only by Air France
a real estate occupied by EUTRADIA and SOFEMA
◆ And on the other hand, compensation recognized for €17 million related to the compensation agreement concluded with the Société Grand Paris for the construction project of a metro station at Paris-Orly and the CDG Express project

4.4 Receivables and related accounts

Trade receivables and related accounts break down as follows:

(In € millions)	As at 30 Jun, 2023	As at 31 Dec, 2022
Trade receivables*	1,109	932
Doubtful receivables	113	114
Accumulated impairment	(109)	(108)
Net amount	1,113	938

* The receivable from Direction Générale de l'Aviation Civile (DGAC) amounts to €405 million. This receivable does not include an advance of €256 million paid by Agence France Trésor (AFT) to cover operating expenses (see note 4.8 Other payables and deferred income).

Impairment losses applied in accordance with the IFRS 9 have changed as follows:

(In € millions)	As at 30 Jun, 2023	As at 31 Dec, 2022
Accumulated impairment at beginning of period	(108)	(120)
Increases	(9)	(21)
Decreases	7	34
Translation adjustments	1	(1)
Accumulated impairment at closing of period	(109)	(108)

The Group classifies receivables by risk of customer default with which a percentage of impairment is associated depending on the age of the claim.

Impairment of receivables at 30 June 2023 is stable. A review of risk levels was carried out after the recognition of bad debts.

4.5 Current operating expenses

Current operating expenses are reported according to their nature and comprise raw material and consumables used, external services and charges, taxes other than income taxes and other operating charges. With regards to taxes, the Group considers that the company value-added contribution (Cotisation sur la Valeur Ajoutée des Entreprises - CVAE) cannot be analyzed as an income tax.

4.5.1 Consumed purchases

The consumed purchases are detailed as follows:

(In € millions)	Half-year 2023	Half-year 2022
Cost of goods	(206)	(176)
Cost of fuel sold	(118)	(63)
Electricity	(23)	(20)
Studies, research and remuneration of intermediaries	(3)	(4)
Gas and other fuels	(10)	(10)
Operational supplies	(6)	(5)
Winter products	(5)	(3)
Operating equipment and works	(29)	(24)
Other purchases	(2)	(4)
Total	(402)	(309)

The increase in purchases consumed of €93 million compared with 2022 is mainly attributable to the cost of fuel sold and the cost of goods.

4.5.2 Other current operating expenses

The other current operating expenses are detailed as follow:

(In € millions)	Half-year 2023	Half-year 2022
External services	(597)	(473)
Taxes other than income taxes	(176)	(151)
Other operating expenses	(57)	(51)
Total	(831)	(675)

Breakdown of other services and external charges

(In € millions)	Half-year 2023	Half-year 2022
Sub-contracting	(292)	(234)
Security	(124)	(101)
Cleaning	(47)	(38)
PHMR (Persons with restricted mobility)	(32)	(25)
Transport	(16)	(11)
Caretaking	(11)	(10)
Recycling trolleys	(6)	(5)
Other	(56)	(44)
Maintenance and repairs	(93)	(75)
Concession rent expenses*	(70)	(57)
Studies, research and remunerations of intermediaries	(34)	(31)
Insurance	(14)	(11)
Travel and entertainment	(9)	(7)
Advertising, publications, public relations	(19)	(9)
Rental and leasing expenses	(11)	(5)
Other external services	(6)	(5)
External personnel	(11)	(14)
Other external expenses & services	(38)	(25)
Total	(597)	(473)

* Concession rent expenses are mainly incurred by AIG for the operation of Queen Alia Airport.

The increase in services and external charges is mainly due to the recovery in activity.

Breakdown of taxes other than income taxes

(In € millions)	Half-year 2023	Half-year 2022
Property tax	(88)	(70)
Non-refundable taxes on safety expenditure	(32)	(28)
Territorial financial contribution	(19)	(20)
Other taxes other than income taxes	(37)	(33)
Total	(176)	(151)

Tax and duties amount to €176 million as at 30 June 2023.

At ADP SA, taxes and duties mainly comprise:

◆ The rise in property tax (+€18 million) is mainly due to the increase in rates and the annual revaluation of taxable bases, as well as the

Breakdown of other operating charges

effect of rebates obtained in 2022 for the nonuse of Paris hubs during the Covid 2020 period.

◆ Non-recoverable taxes on security services increased by €4 million, mainly due to the rise in security expenses in line with traffic growth.

Other operating expenses include in particular the amount of fees for concessions, patents, licenses, rights and similar items, losses on bad debts and subsidies granted.

4.6 Trade payables and related accounts

Trade payables and related accounts are detailed below:

(In € millions)	As at 30 Jun, 2023	As at 31 Dec, 2022
Operating payables*	567	616
Accounts payable	255	293
Total	822	909

* of which €196 million related to concession rent payables on AIG as at 30 June 2023.

4.7 Other receivables and prepaid expenses

The details of other receivables and prepaid expenses are as follows:

(In € millions)	As at 30 Jun, 2023	As at 31 Dec, 2022
Advances and deposit paid on orders	111	90
Tax receivables	114	122
Receivables related to employees and social charges	12	14
Prepaid expenses	55	37
Other receivables	90	44
Total	382	307

4.8 Other payables and deferred income

The details of other payables and deferred income are as follows:

(In € millions)	As at 30 Jun, 2023	As at 31 Dec, 2022
Advances and deposits received on orders *	342	329
Employee-related liabilities	221	224
Tax liabilities (excl. current income tax)	188	89
Credit notes	30	26
Deferred income	222	175
Concession rent payable < 1 year	151	123
Debt related to the minority put option / acquisition of securities **	51	67
Other debts	145	138
Total	1,350	1,171

*The liabilities relating to advances granted by AFT totaling €256 million are presented in "Advances and deposits received on orders".

** mainly concerns GMR Airports Limited shares.

Deferred income is mainly related to Aéroports de Paris SA for €190 million and consist mainly in fixed rent revenue and CDG Express relative billing for €51 million.

The debt of the concession rent payables relate to TAV Airports for TAV Tunisia, TAV Macedonia, TAV Milas Bodrum and TAV Ege (see note 8.2).

4.9 Investment in associates and joint ventures

Principal investments in companies over which the Group exercises significant influence or joint control are described below:

GMR Airports Limited: Groupe ADP owns a 49% stake in GMR Airports Ltd. GMR Airports Ltd, has a portfolio of world class assets comprising six airports in three countries (India, Philippines and Greece) and a subsidiary in project management ("GADL"). The two main concessions, Delhi and Hyderabad, have a term of 30 years renewable once which began on 3 May 2006 and 23 March 2008 respectively. Renewal is at the discretion of GMR Airports, for Hyderabad concession. Regarding Delhi concession, renewal presupposes that certain operational conditions are still met at the end of the first 30-year period, which are in particular quality of services conditions provided in the concession contract. Thus, as long as these conditions are met, renewal is going to be at the discretion of GMR Airports.

GAL is controlled by GMR Entreprises, with the ADP Group having significant influence over this entity in accordance with the terms of the shareholders' agreement: although ADP and GMR Entreprises appoint the same number of directors to GIL's Board of Directors, GMR Entreprises appoints the Chairman, who has the casting vote in the event of a tie. Furthermore, in the event of disagreement over the business plan, GMR Entreprises may ultimately impose its decisions, with Groupe ADP then having the option of selling its GAL shares.

In March 2023, Groupe ADP and GMR Entreprises announced the signature of an agreement initiating a process that should lead to a merger between GIL (GMR Airports Infrastructure Ltd), GIDL (a wholly-owned subsidiary of GIL) and GAL in the first half of 2024 to form an airport holding company listed on the Indian financial markets (see note 2 highlights). The ADP Group will have governance rights similar to those currently held in GAL, preserving its significant influence.

TAV Antalya: a joint venture of TAV Airports and Fraport which operates Antalya International Airport in Turkey. The consortium won the tender in 2021 for the renewal of the airport concession for a period of 25 years, between 1 January 2027 and 31 December 2051. The current operating conditions of the airport remain unchanged until 31 December 2026.

TGS and ATU, 50%-owned joint ventures by TAV Airports, specialising in ground handling and duty-free respectively.

Sociedad Concesionaria Nuevo Pudahuel, joint-venture 45%-owned by ADP International, 40%-owned by Vinci Airports and 15%-owned by Astaldi, operating the concession of Santiago International Airport for a period of 20 years and with the objective to ensure the financing, design and construction of a new 175,000-square meter terminal.

4.9.1 Share of profit or loss of associates and joint ventures

The amounts included in the income statement are broken down by segment as follows:

(In € millions)	Half-year 2023	Half-year 2022
International and airport developments	(22)	(7)
Real estate	2	1
Other activities	2	-
Share of profit or loss in associates and joint ventures	(18)	(6)

In the absence of an obligation or intention to cover the losses of the investments accounted by the equity method, the Group stops recognizing the share of losses of associates and joint ventures when the investments accounted by the equity method are at zero. The share of cumulative unrecognized losses amounts €298 million, including €8 million for June 2023.

Loans granted to these investments are impaired to the extent of their share of unrecognized losses of companies accounted for by the equity method.

4.9.2 Impairment tests on investments in associates and joint ventures

The impairment tests performed as of 30 June 2023 were performed using the same method as that used as of 31 December 2022 (for more details, see the complete annual financial statements for 31 December 2022

Impairment losses of investments in associates and joint ventures by operating segment

Air traffic handled by the Group in the first half of 2023 was significantly higher overall than in 2022, although the latter was still affected by health restrictions at almost all of the Group's airports, which were gradually lifted in 2022 thanks in particular to the roll-out of the vaccination campaign against Covid-19, the first of its kind in the world.

The ongoing conflict in Ukraine, which started in February 2022, has led certain countries to close their borders to Russian nationals and impose economic sanctions against Russia. The war has had a short-term negative impact on traffic to certain destinations which historically leaned on the Russian and Ukrainian markets. However, the effect of this conflict on the Group's airports is now relatively limited, as the most impacted airports have compensated for most of the loss of traffic, with stronger momentum in other markets.

These factors therefore justify the Group's decision not to carry out impairment tests on investments in equity method investments, taking into account all known factors to date.

4.9.3 Breakdown of balance sheet amounts

The amounts relating to the stakes recognized with the equity method can be analysed as follows:

(In € millions)	As at 30 Jun, 2023	As at 31 Dec, 2022
International and airport developments	1,747	1,854
Real estate	25	23
Other activities	2	2
Total investment in associates	1,774	1,879

The main goodwill recognized and included in the above investment in associates amounts to €265 million for the International and airport developments segment.

4.9.4 Evolution of net values

Changes in the Group's share of the net asset value of associates and joint ventures at the beginning and ending of the periods are as follows:

(In € millions)	Net amount as at 1 Jan, 2023	Share of net profit (loss) for the period	Change in consolidation scope	Subscriptio n of share capital	Change in translation adjustment reserves	Effect of IAS 29 - Hyperi nflation	Change in other reserves and reclassificati ons	Dividends paid*	Net amount as at 30 June, 2023
International and airport developments	1,854	(22)	-	-	(27)	7	(4)	(61)	1,747
Real estate	23	2	-	-	-	-	-	-	25
Other activities	2	2	(1)	-	-	-	(1)	-	2
Total investment in associates	1,879	(18)	(1)	-	(27)	7	(5)	(61)	1,774

* Including the results of tax-transparent real estate companies

Receivables and current accounts net of depreciation from associates are detailed in note 9.6.

The effects of IAS 29 (Hyperinflation), concerning TGS company, amounted to -€2 million in income and €3 million in equity.

4.10 Inventories

(In € millions)	As at 31 Dec, 2022	Variation	Impairment net of reversals	Other Changes	As at 30 Jun, 2023
Inventories	133	10	1	(17)	127
Including Extime Duty Free Paris	45	2	-	-	48
Including TAV Kazakhstan - Almaty	38	6	-	(16)	28

Inventories are mainly made up of stocks of goods at Extime Duty Free Paris and stocks of raw materials at TAV Kazakhstan.

NOTE 5 Cost of employee benefits

The assessment of social commitments at the closing of the condensed interim consolidated financial statements is based on the discount rates presented in note 5.2.1. For post-employment plans, the expense for the first half of the year in respect of employee benefits is equal to half of the estimated expense for 2023 based on the valuation work carried out as of 31 December 2022, provided that no specific event generating a past service cost occurs during the first half. The updating of financial assumptions, discount rate and inflation rate, generates actuarial gains and losses which are recognized in OCI (equity) with no impact on the expense for the period.

For long-term plans (such as long-service awards), the immediate recognition of actuarial gains and losses generated during the period is added to the expense for the period.

These valuations are adjusted, if necessary, to consider reductions, liquidations or other significant non-recurring events occurring during the half-year. In addition, the amounts recognized in the consolidated statement of financial position for defined benefit plans are adjusted, where applicable, to take into account significant changes that have affected the yield on bonds issued by leading companies in the region. concerned (benchmark used to determine the discount rates) and the actual yield of plan assets.

5.1 Staff expenses

Staff expenses can be analysed as follows:

(In € millions)	Half-year 2023	Half-year 2022
Salaries and wages	(371)	(298)
including Partial activity compensation	-	1
Social security expenses	(146)	(116)
Salary cost capitalized	25	21
Employees' profit sharing and incentive plans	(3)	(4)
Net allowances to provisions for employee benefit obligations	(1)	13
Total	(496)	(384)

Staff expenses for 2023 amount to €496 million, due to:

The impact of recruitments made in 2022 and in the first half of 2023;
The base effect of the reversal of a provision of €20 million for employee-related commitments, recognized in the first half of 2022;
An increase of €14 million in personnel expenses at Aéroports de Paris, linked to the salary increase measures implemented in July 2022 and January 2023;
A €47 million increase in personnel expenses at TAV Airports, linked to inflation-driven

5.2 Termination benefits

The balance of the provision for Collective Bargaining Breaks (Rupture Conventionnelle Collective) as of 30 June 2023, amounts to €80 million, i.e. a variation of -€16 million compared with December 31, 2022, corresponding mainly to payments made during the period.

wage increases in Turkey and, to a lesser extent, to an increase in headcount;

An increase in staff expenses for the retail segment in Paris (Extime Duty Free Paris & Extime Food & Beverage Paris) for €38 million mainly due to the opening of new sales outlet;

Capitalised production which amounts to €25 million (up +€4 million), represents mainly internal cost related to employees who are involved in construction projects of the company assets including studies, overseeing of construction activities and assistance to the contracting authority.

During 2021, Aéroports de Paris SA had implemented a Plan for the Adaptation of Employment Contracts (PACT). As of 30 June 2023, the PACT provision amounts to €12million.

As at 31 December 2022, PACT provision amounted to €13 million for 160 employees who have left the company.

5.2.1 Assumptions and sensitivity analysis

The main assumptions excluded pension plans used are as follows:

As at 30 Jun, 2023	France	Turkey	Jordan
Discount rate / Expected rate of return on plan assets	3.80%	21.90%	5.60%
Inflation rate	2.30%	19.30%	N/A
Salary escalation rate (inflation included)	2.30% - 4.15%	20.30%	3.20%
Future increase in health care expenses	3.05%	N/A	N/A
Average retirement age	64 - 65 years	50 - 55 years	55 - 60 years

As at 30 Jun, 2022	France	Turkey	Jordan
Discount rate / Expected rate of return on plan assets	3.20%	18.20%	5.90%
Inflation rate	2.30%	15.00%	N/A
Salary escalation rate (inflation included)	2.30% - 3.85%	16.00%	3.20%
Future increase in health care expenses	2.30%	N/A	N/A
Average retirement age	62 - 65 years	51 - 52 years	55 - 60 years

For the rates used in France:

The rate used for discounting the commitment is representative of the rate of return for first-class bonds in euros with duration comparable to those of the commitments involved (weighted average duration of 12.0 years).

Mortality assumptions used are those defined by:

Mortality tables of men/women INSEE prospective 2007-2060 on the service period of beneficiaries; and
Generational tables of men/women TGH05-TGF-05 on the annuity phase.

5.3 Provisions for employee benefit commitments on the balance sheet

Provisions for employee benefit obligations have evolved as follows on the liabilities of the balance sheet:

	Half-year 2023	Half-year 2022
(In € millions)
Provisions as at 1 January	442	654
Increases	22	17
Operating allowances	10	14
Financial allowances	7	2
Provision for non-recurring items	5	-
Increase due to changes in consolidation scope	-	1
Decreases	(34)	(154)
Provisions used	(27)	(49)
Recognition of actuarial net gains	6	(72)
Reduction / curtailment / change	(7)	(32)
Other changes	(6)	(1)
Provisions at 30 June		517
Non-current portion	401	439
Current portion	29	78

Actuarial losses of €6 million recognized in other comprehensive income at 30 June, 2023 are mainly the consequence of updating the minimum and maximum reference salaries used for benefits measured in Turkey.

The pension reform in France has been treated as a plan modification at 30 June 2023; its impact is an income of €2.5 million, exclusively for the ADP SA company's end-of-career indemnity plan (the Aéroports De Paris Group's largest plan in terms of social debt).

The pension reform in Turkey has also been treated as a plan modification at 30 June 2023; its impact is a total income of €1.2 million.

5.3.1 Best estimate of the contributions to be paid

The amount of contributions that the Group believes will need to be paid for the defined benefits plans on the assets side in June 2023 is not significant.

5.4 Free Share Allocation Plan

This transaction is described in note 2 "Significant events". Its impact on income is -€4 million at 30 June 2023.

NOTE 6 Intangible assets, tangible assets and investment properties

The accounting policies related to intangible, tangible assets and investment properties are the same as at 31 December 2022. For more information, please refer to the complete annual financial statements.

6.1 Intangible assets

Intangible assets are detailed as follows:

(In € millions)	Goodwill*	Airport operation right**	Software	Other	Fixed assets in progress, related advances & prepayments	Total
Gross value	293	3,380	398	242	41	4,354
Accumulated amortisation, depreciation and impairment	(72)	(841)	(312)	(125)	-	(1,350)
Carrying amount as at 1 January 2023	221	2,539	86	117	41	3,004
Purchases	-	1	2	-	10	13
Amortisation and depreciation	-	(70)	(18)	(3)	-	(91)
Impairment net of reversals	-	-	1	-	-	1
Translation adjustments	(2)	(14)	-	-	-	(16)
Transfers to and from other headings	-	-	11	-	(7)	4
Carrying amount as at 30 June 2023	219	2,456	82	114	44	2,915
Gross value	290	3,357	408	242	44	4,341
Accumulated amortisation, depreciation and impairment	(71)	(901)	(326)	(128)	-	(1,426)

* See note 6.1.2 ** See note 6.1.1

6.1.1 Airport operating rights

End of contract dates of main airport operating rights are as follows:

	Izmir Adnan Menderes International Airport	Milas-Bodrum Airport	Esenboga and Gazipasa	Tbilisi and Batumi International Airport	Monastir and Enfidha International Airport	Skopje and Ohrid International Airport	Queen Alia International Airport
Country	Turkey	Turkey	Turkey	Georgia	Tunisia	Macedonia	Jordan
End of contract date	December	December	May 2050 & May	February 2027 and August	May 2047	June 2032	November

Airports operating rights amount to €3,357 million as at 30 June 2023 (€2,456 million net carrying amount). They are composed mainly by concession agreements of Queen Alia International Airport, Izmir Adnan Menderes International Airport, Tbilissi and Batumi International Airport, Monastir and Enfidha International Airport, Skopje and Ohrid International Airport and Milas Bodrum Airport. Main concession characteristics are as follows:

◆ Fees are defined in the concession agreements and price increases are subject to agreement by the grantor;
◆ Users and airlines are at the beginning of fees collection of the contract;
◆ No grants or guarantees are given by the grantor;
◆ Infrastructures are returned to the grantor with no consideration at the end of the contract.

It should be noted that the amortisation of airport operating rights is calculated on traffic forecasts.

As regard to the concession agreement signed between TAV Esenboğa and the DHMI (Devlet Hava Meydanları Isletmesi) which terminates in May 2025 (2-year extension obtained in February 2021). The Group applies the financial asset model. The financial asset was initially recognized at fair value. As at 30 June 2023, the non-current part of this financial asset amounts to €2 million (see note 9.5.3 Liquidity risks).

Regarding the renewal of the Ankara airport concession from May 2025 to May 2050, upfront fee of €119 million payment has been booked as "deposit and guarantees paid" included in other non-current financial assets. In 2025 when the new concession period starts, this deposit will be classified as airport operation right. Additionally, in May 2025, all the concession payments that will occur between 2025 and 2049, will be discounted by using cost of debt and will be booked as concession liability and airport operation right. Airport operation right will be amortized by unit of production method by using passenger numbers during the concession period.

6.1.2 Goodwill

As at 30 June 2023, net goodwill amount to €219 million and are mainly attributable to the TAV Holding and Almaty.

6.2 Tangible assets

(In € millions)	Land and improvements of land	Buildings	Plant and equipment	Right-of-use assets*	Others	Fixed assets in progress, related advances & prepayments	Total
Gross value	77	13,596	764	157	439	1,032	16,065
Accumulated amortisation, depreciation and impairment	(20)	(6,903)	(553)	(54)	(275)	(7)	(7,812)
Carrying amount as at 1 January 2023	57	6,693	211	103	164	1,025	8,253
Purchases	-	1	15	12	6	306	340
Disposals and write-offs	-	-	(2)	-	(1)	-	(3)
Amortisation and depreciation	(1)	(256)	(24)	(9)	(17)	-	(307)
Impairment net of reversals	-	6	-	-	-	4	10
Translation adjustments	-	(7)	(2)	(2)	(2)	(3)	(16)
Effect of IAS 29 - Hyperinflation	-	2	1	1	1	-	5
Transfers to and from other headings	1	255	10	8	6	(220)	60
Carrying amount as at 30 June 2023	57	6,694	209	113	157	1,112	8,342
Gross value	78	13,718	766	172	446	1,115	16,295
Accumulated amortisation, depreciation and impairment	(21)	(7,024)	(557)	(59)	(289)	(3)	(7,953)

* see note 6.2.1

As at 30 June 2023, investments concern the following implemented items:

◆ the parking P3 at Paris Orly ;
◆ the purchase of standard 3 hold baggage screening equipment related to European regulation at the terminal 1 at Paris – Charles de Gaulle ;
◆ the junction of satellites 1, 2 and 3 of terminal 1 at Paris – Charles de Gaulle ;
◆ the construction of the new fire station at Paris Le Bourget ;
◆ the new staging of the terminal 1 at Paris Charles de Gaulle ;
◆ the renovation of the aeronautical infrastructure W1 near the ECHO aircraft apron at Paris – Orly ;
◆ the staging of the terminal 2G at Paris Charles de Gaulle ;

Investments in property, plant and equipment amounted to €340 million as at 30 June 2023, increase to 37% compared to the first semester of 2022.

The borrowing costs capitalised as of 30 June 2023 in according to IAS 23 revised amounted to €7 million, based on an average capitalization rate of 1,92%. This amount only concerns projects in progress for ADP SA.

The inventory program launched last year is continuing into fiscal 2023, and has led to the scrapping and removal of fully impaired assets.

IFRS 16 Lease contracts, Groupe ADP as Lessee

The assets related to the use right are detailed as follows:

(In € millions)	Land and improvements of land	Buildings	Plant and equipment*	Other	Total
Gross value	51	93	12	1	157
Accumulated amortisation, depreciation and impairment	(15)	(30)	(10)	1	(54)
Carrying amount as at 1 Jan 2023	36	63	2	2	103
Purchases	11	1	-	-	12
Amortisation, depreciations et impairment	(3)	(5)	(1)	-	(9)
Translation adjustments	-	(2)	-	-	(2)
Effect of IAS 29 - Hyperinflation	-	1	-	-	1
Transfers to and from other headings	-	8	-	-	8
Carrying amount as at 30 June 2023	44	66	1	2	113
Gross value	61	99	11	1	172
Accumulated amortisation, depreciation and impairment	(17)	(33)	(10)	1	(59)

* Including vehicles

6.3 Investment properties

Every six months, a sensitivity analysis is carried out by our independent experts based on a risk analysis by asset class and geographic area. This analysis is supplemented by the major rental events of the first half of the year for certain assets that have a significant impact on their value (support measures in exchange for the duration of the commitment, vacating of space that has been completed or is under negotiation, risk of default by the lessee, ....).

6.3.1 Analysis of investment properties

Investment property is detailed as follows:

(In € millions)	Land, improvements of land and substructure	Buildings	Fixed assets in progress, related advances & prepayments	Total
Gross value	114	874	27	1,015
Accumulated amortisation, depreciation and impairment	(62)	(332)	-	(394)
Carrying amount as at 1 January 2023	52	542	27	621
Purchases and change in advances and prepayments	-	-	12	12
Amortisation, depreciations et impairment	(1)	(9)	-	(10)
Transfers to and from other headings	1	4	(12)	(7)
Carrying amount as at 30 June 2023	52	537	27	616
Gross value	115	877	29	1,021
Accumulated amortisation, depreciation and impairment	(64)	(341)	-	(405)

Transfers to and from headings include reclassifications of other fixed asset headings, returns to full ownership of assets from construction leases and borrowing costs capitalized in accordance with IAS 23 revised.

6.3.2 Fair value of investment properties

The first half of 2023 was marked by the continuation of the inflationary economic context and a real estate market impacted by the increase in key interest rates, which strongly penalized investments. The increase in discount rates, differentiated according to asset class and location, has largely contained the increase in indexation.

In order to measure the impact of the crisis on the fair value of investment properties, which amounted to €3,245 million at 31 December 2022 (excluding land reserves amounting to €307 million), a sensitivity analysis was carried out by our independent experts on the basis of a risk analysis by asset class and by geographic area. This analysis was supplemented by significant rental events occurring in the first half of 2023 for certain assets that could have an impact on the 2022 values (vacating or renewal of space, changes in rental values, significant work campaigns, etc.).

Carried out on the entire 2022 value (excluding land reserves), this sensitivity analysis impacts the value of the portfolio by -€34 million (i.e. -1.2%) on a like-for-like basis, excluding transfer taxes and expenses. This decline applies to the entire portfolio, and more significantly to

buildings, which have been penalized by rising interest rates, and to a lesser extent to leased land, which is still relatively stable given the scarcity of available land.

The sensitivity analysis impacts the value of buildings downwards (i.e. - 1.6%), across the entire portfolio and mainly on office assets of significant size and in the inner suburbs, which appear less attractive to investors, and to a lesser extent on freight assets and business parks.

6.3.3 Additional information

The law of 20 April 2005 provides that in the event of the closing to public air traffic all or part of an aerodrome operated by Groupe ADP, Aéroports de Paris will pay the government a percentage of at least 70% of the difference existing between, on the one hand, the market value on this date of the buildings located within the confines of this At the same time, the value of leased land is relatively stable and has decreased by almost -0.7% with secured flows on long-term contracts combined with a more pronounced scarcity of land at our sites located within the airport.

Apart from the tense context of the investment market, no other major event such as the sale, entry or exit of a major tenant has taken place in the portfolio since the last 2022 valuation campaign.

aerodrome which are no longer assigned to the airport public service and, on the other hand, the value of these buildings on the date when they were allotted to him , plus the costs related to their refurbishment and the closure of airport facilities.

6.4 Impairment of intangible, tangible and investment properties

The impairment tests performed as of 30 June 2023, were performed using the same method as that used as of 31 December 2022 (for more details, see the complete annual financial statements for 31 December 2022).

Impairment losses and reversals can be analyzed as follows:

(In € millions)	Half-year 2023	Half-year 2022
Impairment losses net of reversals on intangible assets (others that goodwill)	-	10
Impairment losses net of reversals over the period	-	10

From a higher level perspective, the current macroeconomic context, marked by high inflation, high interest rates and a downwardly revised global growth outlook, is likely to directly or indirectly weaken certain economies, and thus the prospects of certain fixed assets exposed to these economies, such as Tunisia.

These factors justify the Group's decision to carry out impairment tests on airport concessions and service activities that have previously been impaired or which are presenting a proven risk of impairment. This will be done to provide the best possible information on the valuation of the Group's assets, taking into account all known factors to date.

Considering the global situation tendencies since December 2022, and following a broad review of financial trajectories, only the concessions operated by TAV Airports in Tunisia and AIG in Jordan have been tested for impairment.

International segment and airport development

In the current context, the Group may have to negotiate with concession grantors and project lenders. Furthermore, business plans are based on the contractual duration of concessions, except in the case of concession extensions signed by the concessionaire and the concession grantor.

The impairment tests carried out are based on assumptions for the return of 2019 traffic levels from 2023. The aforementioned assumptions were established for each concession on the basis of seasonality and the weight of domestic and international flights, in accordance to Eurocontrol / IATA medium-term traffic forecasts for the geographies concerned.

These impairment tests did not show any need to recognize a reversal of impairment.

Sensitivity analyses of discount rates show that a variation of +100 basis points in the discount rate for the concessions tested would result in an impairment loss of €1 million.

In addition, a sensitivity analysis of traffic levels indicates that a one-year delay in the return to 2019 traffic levels for the international airport concessions tested would result in an impairment loss of €5 million.

NOTE 7 Equity and Earnings per share

7.1 Equity

Equity breaks down as follows:

Share capital Share premium Treasury shares Retained earnings Other equity items Group share Noncontrolling interests Total (In € millions) As at 30 June ²⁰²³ ²⁹⁷ ⁵⁴³ (38) 3,385 (205) 3,982 ⁷⁸⁹ 4,771

7.1.1 Share capital

Aéroports de Paris SA' aggregate share capital amounts to €296,881,806 divided into 98,960,602 fully paid shares of €3 each, which were not subject to any change during 2023.

The share capital is accompanied by a share premium of €542,747 thousands pertaining to the issuance of shares in 2006.

7.1.2 Treasury shares

Treasury shares held by the Group are booked as a deduction from equity at their cost of acquisition. Any gains or losses connected with the purchase, sale or cancellation of treasury shares are recognized directly in equity without affecting the income statement.

In 2022, as part of the process of orderly disposal of the 8% cross-shareholdings held respectively by Aéroports de Paris and Royal Schiphol Group, 296,882 shares held by Royal Schiphol Group were purchased by ADP SA and are intended to cover any allocation of ADP Group performance shares and/or allocation of shares as part of an employee shareholding operation.

It was identified after the Board of Directors' meeting of 29 March 2023, which approved the ADP Group's management report for fiscal year 2022, that 9,103 shares held by Aéroports de Paris, acquired between 25 November 2015 and 22 March 2016, and constituting a remainder under the employee shareholding operation implemented in 2016, had been omitted from the count of treasury shares held by the company.

As part of its liquidity contract and in accordance with the authorization given by the shareholders at the ordinary general meeting of 16 May 2023, during the period, the company repurchased 358 045 shares and sold 353 045 shares. At June 30, 2023, 5,000 shares were held in the liquidity account.

Thus, the number of treasury shares that was 305 985 as at 31 December 2022 is 310 985 as at 30 June 2023.

No impairment tests have been carried out on the assets of the Paris platforms. In fact, there is no new evidence to date of any potential impairment of these assets. Paris airports are relatively insensitive to the Ukrainian conflict, and the upturn in traffic seen in the first half of 2023 is in line with initial forecasts (return to a level of between 87% and 93% of 2019 passenger traffic).

7.1.3 Other equity items

Other equity items break down as follows:

(In € millions)	As at 1 Jan 2022	Comprehensiv e income - Half-year 2022	Presentation adjustments ***	As at 30 June 2022	As at 1 Jan, 2023	Comprehensive income - Half year 2023	As at 30 June 2023
Translation adjustments	(100)	45	22	(33)	(107)	(23)	(129)
Actuarial gain/(loss)*	(138)	52	4	(82)	(83)	(5)	(89)
Fair value reserve	(21)	2	26	7	(5)	1	(4)
Effect of IAS 29 - Hyperinflation**	-	13	-	13	12	5	17
Total	(259)	112	52	(95)	(183)	(22)	(205)

* Cumulative losses on variances, net of deferred tax

** Effect of hyperinflation on fully consolidated companies and companies accounted for by the equity method (€1 and €-2 million)

*** Mainly transfer from translation adjustments in reserves to retain earnings

Translation adjustments correspond mainly to exchange differences on Indian rupee arising from GMR Airports Limited shares.

7.1.4 Legal and distributable reserves of Aéroports de Paris SA

Legal and distributable reserves of Aéroports de Paris SA may be analysed as follows:

(In € millions)	As at 30 Jun, 2023	As at 31 Dec, 2022
Legal reserve	30	30
Other reserves	839	839
Retained earnings	909	477
Net income for the period	308	741
Total	2,086	2,087

7.1.5 Dividend distribution policy

During the Ordinary General Meeting of Shareholders of the Group approving the June 2023 accounts, the payment of a dividend amounting to €3.13 per share i.e. a total amount of €309 million will be proposed, on the basis of the number of shares existing as at 30 June 2023.

7.1.6 Dividends paid

The unit dividends paid amounted to €3.13 per share in accordance with the 3rd resolution of the ordinary shareholders' meeting of 16 May 2023.

7.1.7 Earnings per share

The calculation of earnings per share is as follows at the closing date:

	Half-year 2023	Half-year 2022
Weighted average number of outstanding shares (without own shares)	98,661,117	98,944,874
Net income attributable to owners of the parent company (in € million)	211	160
Basic earnings per share (in €)	2.14	1.62
Diluted earnings per share (in €)	2.14	1.62
Including continuing activities
Net profit of continuing activities attributable to owners of the parent company (in € million)	211	160
Basic earnings per share (in €)	2.14	1.62
Diluted earnings per share (in €)	2.14	1.62

Basic earnings per share correspond to the income attributable to holders of equity in the parent company.

company, less the average self-owned shares held during the period, i.e. 299,485 as at 30 June 2023 and 34,370 as at 31 December 2022.

The weighted average number of shares corresponds to the number of shares making up the share capital of the parent

There are no diluting equity instruments.

7.2 Non-controlling interests

Non-controlling interests break down as follows:

(In € millions)	As at 30 Jun, 2023	As at 31 Dec, 2022
Non-controlling interests
TAV Airports	778	813
Airport International Groupe (AIG)	6	8
Extime Media (ex Média Aéroports de Paris)	3	4
Extime Duty Free Paris	(3)	-
Relay@ADP	5	4
Others	-	1
Total	789	830

NOTE 8 Other provisions and other non-current liabilities

8.1 Other provisions

Other provisions set up by Groupe ADP concern essentially commercial and social litigation, as well as country and environmental risks. A provision is recognized as soon as a liability of uncertain timing or amount occurs. A provision is recognized when the three following conditions are satisfied:

the Group has a present legal or constructive obligation resulting from a past event;
it is probable that future outflows of resources embodying economic benefits will be necessary to settle the obligation;
the amount of the obligation can be estimated reliably.

Other provisions evolved as follows:

(In € millions)	Litigation and claims	Other provisions	Half-year 2023	Litigation and claims	Other provisions	Half-year 2022
Provisions as at 1 January	28	34	62	22	138	160
Increases	4	8	12	4	3	7
Additions and other changes	4	8	12	4	3	7
Decreases	(1)	(4)	(5)	(4)	(90)	(94)
Other changes	-	-	-	-	(73)	(73)
Provisions used	-	-	-	-	(1)	(1)
Provisions reversed	(1)	(4)	(5)	(4)	(16)	(20)
Provisions at 30 June	31	38	69	22	51	73
Of which
Non-current portion	29	28	57	22	45	67
Current portion	2	10	12	-	6	6

Provisions for disputes relate to various supplier, employee and commercial issues.

Information regarding provision for cost of employee benefits are disclosed in note 5.

Other provisions include in particular provisions for customer and supplier risks and the Group's commitments to offset the negative net financial position of investments in associates.

Information on contingent liabilities is disclosed in note 15.

8.2 Other non-current liabilities

Items presented as other non-current liabilities include:

Investment subsidies. In compliance with the option offered by IAS 20, these subsidies are recorded as liabilities and are transferred to the income statement as the associated assets are amortized;
Concession rent payable for concessions operated by TAV Airports;
Revenues from contracts accounted as deferred income;
Advances and deposits on orders over one year
Debt related to the minority put option.

In compliance with IAS 32, this debt is initially measured at the present value of the option exercise price. The counterpart of this debt is a decrease in the carrying value of the minority interest. The difference between the present value of the option exercise price and the carrying value is recorded in shareholder's equity – Group share under other reserves.

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

(In € millions)	As at 30 Jun, 2023	As at 31 Dec, 2022
Concession rent payable > 1 year	614	657
Investment grants	55	57
Debt related to the minority put option	53	187
Deferred income	59	58
Other	1	1
Total	782	960

Concession rent payable mainly relates 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 30 June 2023, non-current concession rent payable amounts to €314 million for Milas Bodrum and €233 million for Ege (vs. €307 million and €283 million respectively as at 31 December 2022).

The debt related to the minority put option and outstanding payments on shares concern mainly Almaty Airport Investment (Kazakhstan) and Embassair (USA). The decrease in this item mainly corresponds to the payment of the earn-out related to the acquisition of Almaty Airport Investment.

Deferred income over a year mainly concerning Paris SA Airport and consists in:

◆ the rent to Air France of terminal T2G, i.e., €9 million as of 30 June 2023 (€11 million as of 31 December 2022);
◆ leasing construction of SCI Aéroville, i.e., €26 million as of 30 June 2023 (€27 million as of 31 December 2022).

NOTE 9 Financing

9.1 Management of financial risk

Financial and market risk management are identical to those applied at 31 December 2022. For more information, please refer to the complete annual financial statements.

9.2 Capital Management

The gearing ratio increased from 153% in December 2022 to 170% as at 30 June 2023. The increase of the gearing ratio is driven by the increase of net financial debt.

The net financial debt / EBITDA ratio decreased from 4.37 at 31 December 2022 to 4.34 at 30 June 2023. The decrease of the ratio is explained by the increase of EBITDA.

9.3 Net financial income

The Group did not alter its capital management policy over the course of the year with the exception of the decision to set up a bonus share plan (see note 5).

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 1.69 % of ordinary shares.

Neither the parent company nor its subsidiaries are subject to any specific requirements under external regulations.

Net financial income includes interest payable on borrowings calculated using the effective interest rate method, interest on investments, interest on social liabilities resulting from defined benefit plans, foreign exchange gains and losses on hedging instruments that are recognized in the income statement. As such, it includes realized and unrealized income from foreign exchange and interest rate derivatives carried by Groupe ADP, whether they are documented in hedge accounting. The financial result also includes the accretion of debts on concession rents and the impairment of loans granted to companies accounted for using the equity method.

The analysis of net financial income is as follows respectively for 2023 and 2022:

(In € millions)	Financial income	Financial expenses	Net Financial income Half year 2023
Gross interest expenses on debt	-	(138)	(138)
Interest expenses linked to lease obligations	-	(3)	(3)
Net income (expense) on derivatives and changes in derivative values	244	(233)	11
Cost of gross debt	244	(374)	(130)
Income from cash and cash equivalents	44	-	44
Cost of net debt	288	(374)	(86)
Net foreign exchange gains (losses)	82	(99)	(17)
Impairment and provisions	-	(22)	(22)
Other	8	(22)	(14)
Other financial income and expenses	90	(143)	(53)
Net financial income	378	(517)	(139)

(In € millions)	Financial income	Financial expenses	Net Financial income Half year 2022
Gross interest expenses on debt	-	(116)	(116)
Interest expenses linked to lease obligations	-	(2)	(2)
Net income (expense) on derivatives	4	(3)	1
Cost of gross debt	4	(121)	(117)
Income from cash and cash equivalents	3	(5)	(2)
Cost of net debt	7	(126)	(119)
Income from non-consolidated investments	9	-	9
Net foreign exchange gains (losses)	114	(103)	11
Impairment and provisions	2	(13)	(11)
Other	37	(48)	(11)
Other financial income and expenses	162	(164)	(2)
Net financial income	169	(290)	(121)

Financial income and expenses also include impairment losses on loans granted to companies accounted for by the equity method, the results of which are no longer recognized (see Note 4.9.1), other financial income and expenses related to restructuring operations, changes in the fair value of financial instruments entered into as part of the proposed merger between GIL, GIDL and GAL (see note 2 "Significant events"), and the positive impact of IAS 29 linked to hyperinflation.

Gains and losses by category of financial instruments are as follows:

(In € millions)	Half-year 2023	Half-year 2022
Income, expenses, profits and loss on debt at amortised cost	(137)	(117)
Interest charges on debt at amortised cost	(138)	(116)
Interest expenses linked to lease obligations	(3)	(2)
Net interest on derivative instruments held as cash-flow hedges	-	(3)
Change in value of fair value hedging instruments	4	4
Change in value of hedged items	-	-
Gains and losses of financial instruments recognized at fair value in the income statement	51	(2)
Gains on cash equivalents (fair value option)	44	(2)
Gains realized and unrealized on derivative instruments not classified as fair value hedges (trading derivatives)	7	-
Profits and losses on assets held for sale	-	-
Dividends received	-	3
Gains (losses) on disposal	-	(3)
Other profits and losses on loans, credits and debts and amortised cost	(46)	-
Net foreign exchange gains (losses)	(18)	13
Other net profit or losses	(13)	(3)
Net allowances to provisions	(15)	(10)
Financial allowances to provisions for employee benefit obligations	(7)	(2)
Financial allowances to provisions for employee benefit obligations	(7)	(2)
Total other financial income and expenses	(53)	(2)
Total net gains (net losses) recognized in the income statement	(139)	(121)
Change in fair value (before tax) recognized in equity	(1)	57
Total net gains (net losses) recognized directly in equity	(1)	57

9.4 Financial debt

Bond issues and other interest-bearing liabilities are initially recognized at their fair value, which corresponds to the amount received, less attributable transaction costs, such as issue premiums and expenses. Subsequently, the debt is recognized according to the method of the amortised cost using the effective interest rate of the instrument.

The effective rate corresponds to the rate that enables to obtain the booked value of a bond at its initial date, when discounting future cash flows related to the instrument.

Financial debts with maturities greater than one year are recognized as non-current debt. Financial debts due for repayment within less than one year are recognized as current debt.

9.4.1 Details of loans and financial debt

Loans and financial debt at the closing date may be analysed in this way:

(In € millions)	As at 30 Jun, 2023	Non-current portion	Current portion	As at 31 Dec, 2022	Non-current portion	Current portion
Bonds	7,823	6,823	1,000	7,818	7,316	502
Bank loans (i)	1,929	1,290	639	1,761	1,197	564
Lease obligations	99	88	11	90	81	9
Other loans and assimilated debt	169	164	5	173	168	5
Accrued interest	128	-	128	153	-	153
Debt (excluding derivatives)	10,148	8,365	1,783	9,995	8,762	1,233
Derivative financial instruments (liabilities)	233	-	233	1	1	-
Total debt	10,381	8,365	2,016	9,996	8,763	1,233

(i) The current portion of bank loans includes bank loans from concessionaire companies that have not complied with material conditions under the financing documents (AIG and TAV Tunisia). Negotiations are ongoing with lenders and both parties strive to find a consensual solution.

(In € millions)	As at 31 Dec, 2022	Increase / subscripti on*	Repayme nt*	Changes from financing cash flows	Changes from non financing cash flows	Exchan ge differen ces	Change in fair value	Changes in consolidat ion scope	Other changes	As at 30 Jun, 2023
Bonds	7,818	-	(2)	(2)	-	-	6	-	1	7,823
Bank loans	1,761	304	(128)	176	-	(12)	-	-	4	1,929
Other loans and assimilated debt	173	2	(4)	(2)	-	(2)	-	2	(2)	169
Total long-term debt	9,752	306	(134)	172	-	(14)	6	2	3	9,921
Lease obligations	90	-	(10)	(10)	-	(1)	-	-	22	100
Debt (excluding derivatives)	9,842	306	(144)	162	-	(15)	6	2	25	10,021
Accrued interest	153	-	-	-	(20)	(1)	-	-	(4)	128
Derivative financial instruments	1	-	-	-	-	-	233	-	(1)	233
(liabilities) Total debt	9,996	306	(144)	162	(20)	(16)	239	2	20	10,382

Changes in loans and financial debt as at 30 June 2023 are as follows:

*The increases/subscriptions and repayments of debt excluding derivatives and excluding accrued interests are disclosed in the consolidated cash flow statement respectively under the lines "Proceeds from long-term debt" and "Repayment of long-term debt"

ADP Group's gross debt increased by €367 million over halfyear 2023. This increase is mainly due to:

◆ The subscription of new bank loans for €304 million, including €138 million for TAV Ankara;
◆ Repayment of bank loans for €128 million ;
◆ The recognition of a derivative liability of €233 million of a call option on FCCB bonds put in

place as part of the merger project between GIL & GAL. Valuations of derivative assets and liabilities have been carried out by independent experts in connection with the transaction described in note 2 "Significant events" in connection with the planned merger.

9.4.2 Net financial debt

Net financial debt as defined by Groupe ADP corresponds to the amounts appearing on the liabilities of the balance sheet under the items non-current loans and debts, and current loans and debts, debt related to the minority put option, reduced by derivative financial instruments in an asset position, cash and cash equivalents and restricted bank balances.

This net financial debt appears as follows at the closing date:

(In € millions)	As at 30 Jun, 2023	Non-current portion	Current portion	As at 31 Dec, 2022	Non-current portion	Current portion
Debt	10,381	8,365	2,016	9,996	8,763	1,233
Debt related to the minority put option (i)	104	53	51	254	187	67
Gross financial debt	10,485	8,418	2,067	10,250	8,950	1,300
Derivative financial instruments (assets) (ii)	73	73	-	54	54	-
Cash and cash equivalents (iii)	2,251	-	2,251	2,631	-	2,631
Restricted bank balances (iiii)	72	-	72	125	-	125
Net financial debt	8,089	8,345	(256)	7,440	8,896	(1,456)
Gearing	170%			153%

⁽i) Mainly GMR

(ii) Derivative financial instruments mainly concern interest-rate derivatives and the put option on FCCB bonds set up as part of the planned merger between GIL & GAL.

(iii) Including €95 million of cash dedicated to aid to local residents funding collected through the tax on airborne noise nuisances (TNSA).

(iiii) Restricted bank balances relate to TAV Airports. Certain subsidiaries, namely TAV Tunisia, TAV Macedonia, TAV Milas Bodrum, TAV Ege and TAV Holding ("the Borrowers") opened Project Accounts designated mainly in order to reserve required amount to reimburse project debt or elements defined in the agreements with their lenders (lease payments to DHMI, operational charges, tax,…).

Valuations of derivative assets and liabilities are carried out by independent appraisers in connection with the transaction described in note 2 "Significant events", concluded as part of the proposed merger between GIL & GAL.

9.4.3 Details of bonds and bank loans

Details of bonds and bank loans may be analysed in the following way:

			Remaining capital to be paid
(In € millions)	Currency	Maturity < 1 year	Maturity between 1 & 5 years	Maturity > 5 years	Book value as at 30/06/2023	Fair value as at 30/06/2023 *
Bonds	EUR	1,000	2,586	4,237	7,823	7,383
Bank loans	EUR	451	697	244	1,392	1,545
Bank loans	USD	184	177	169	530	684
Bank loans	TRY	4	-	-	4	3
Bank loans	Other	1	2	-	3	-
Total		1,640	3,462	4,650	9,752	9,615

*The fair value (M-to-M) is a value calculated by discounting future cash flows excluding accrued interest. This value does not include the Aéroports de Paris SA'credit spread.

9.5 Financial instruments

9.5.1 Categories of financial assets and liabilities

		Breakdown by category of financial instrument
	As at 30 Jun, 2023		Fair value		Amortised cost	Hedging derivatives
(In € millions)		Fair value option*	Trading debt derivatives or derivatives at fair value through P&L **	Equity instr. - FV through P&L		Fair value hedge	Cash flow hedge
Other non-current financial	1,215	-	23	107	1,035	-	50
assets Contract assets	-	-	-	-	-	-	-
Trade receivables	1,113	-	-	-	1,113	-	-
Other receivables***	255	-	-	-	255	-	-
Other current financial assets	207	-	-	-	207	-	-
Cash and cash equivalents	2,251	2,251	-	-	-	-	-
Total financial assets	5,041	2,251	23	107	2,610	-	50
Non-current debt	8,365	-	-	-	8,365	-	-
Contract liabilities	2	-	-	-	2	-	-
Trade payables and other payables	822	-	-	-	822	-	-
Other debts and other non current liabilities***	1,667	-	-	-	1,667	-	-
Current debt	2,016	-	233	-	1,783	-	-
Total financial liabilities	12,872	-	233	-	12,639	-	-

* Identified as such at the outset.

** Classified as held for trading purposes.

*** Other receivables and other debts exclude all accounts which do not constitute, within the terms of IAS 32, contractual rights and obligations, such as tax and social security debts or receivables.

Other non-current financial assets include FCCB, put options concluded as part of the projected merger between GIL & GAL. Valuations are carried out by independent experts in connection with the transaction described in note 2 "Significant events".

The Group does not recognize any financial asset at fair value through OCI.

9.5.2 Fair value hierarchy

Fair value hierarchy

IFRS 13, "Fair Value Measurement", establishes a fair value hierarchy and distinguishes three levels:

level 1: fair value based on quoted prices for the same instrument in an active market (without modification or repackaging). This level mainly applies to marketable securities whose prices are reported by the French Financial Markets Authority (Autorité des Marchés Financiers);
level 2: fair value based on quoted prices for similar assets or liabilities and valuation techniques whose major data are based on observable market data. This level mainly applies to derivative instruments whose values are provided by Reuters;
level 3: fair value based on valuation techniques whose major data are not all based on observable market data. This level is used for equity securities issued by TAV Tunisia.

The fair value hierarchy for financial instruments in 2023 and 2022 is as follows:

	As at 30 June 2023		Level 1 Quoted	Level 2 Prices	Level 3 Prices
(In € millions)	Book value	Fair value	prices in active markets	base on observable data	base on non observable data
Assets
Equity instruments - fair value through P&L	107	107	-	107	-
Loans and receivables excluding finance leases receivables	1,124	1,124	-	1,124	-
Trade receivables	1,113	1,113	-	1,113	-
Derivatives	73	73	-	50	23
Cash and cash equivalents	2,251	2,251	2,251	-	-
Liabilities
Bonds	7,823	7,383	-	7,383	-
Bank loans	1,929	2,232	-	2,232	-
Lease obligations	99	99	-	99	-
Other loans and assimilated debt	169	169	-	169	-
Accrued interest	128	128	-	128	-
Derivatives	233	233	-	-	233
Other non-current liabilities	782	782	-	782	-
Other debts and deferred income	1,350	1,350	-	1,350	-

	As at 31 Dec, 2022		Level 1 Quoted	Level 2 Prices	Level 3 Prices
(In € millions)	Book value Fair value		prices in active markets	base on observable data	base on non observable data
Assets
Equity instruments - fair value through P&L	189	189	-	189	-
Loans and receivables excluding finance leases receivables	542	542	-	542	-
Trade receivables	938	938	-	938	-
Derivatives	54	54	-	54	-
Cash and cash equivalents	2,631	2,631	2,631	-	-
Liabilities
Bonds	7,818	7,321	-	7,321	-
Bank loans	1,761	2,079	-	2,079	-
Lease obligations	90	90	-	90	-
Other loans and assimilated debt	173	173	-	148	25
Accrued interest	153	153	-	153	-
Derivatives	1	1	-	1	-
Other non-current liabilities	960	960	-	960	-
Other debts and deferred income	1,171	1,171	-	1,171	-

9.5.3 Analysis of risks related to financial instruments

Rate risks

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

		As at 30 Jun, 2023		As at 31 Dec, 2022
(In € millions)	Before hedging	After hedging	%	Before hedging	After hedging	%
Fixed rate	9,076	9,711	96%	8,930	9,588	96%
Variable rate	1,072	437	4%	1,065	407	4%
Debt (excluding derivatives)	10,148	10,148	100%	9,995	9,995	100%

As of 30 June 2023, the Group holds rate and exchange based derivative financial instruments (swaps), with a €50 million fair value, appearing on the assets under other current financial assets, and nil value appearing on the liabilities under financial debt.

The notional amounts of fair value hedging derivatives may be analysed as follows:

(in thousands of euros)	Maturity < 1 year	Maturity between 1 & 5 years	Maturity > 5 years	As at 30 June 2023	Fair value
Derivatives classified as cash flow hedges	14	267	355	635	50
Derivatives not classified as hedges	-	-	(210)	(210)	(210)
Total	14	267	145	425	(160)

The Group is exposed to interest rate fluctuations on its variable rate debt. To hedge this risk, it enters into floatingrate lender-fixed-rate borrower swaps backed by its floating-rate financing. The hedging relationships are designated as "cash flow hedges". As of 30 June 2023, these hedging relationships are carried by the following entities: TAV Airports and AIG.

As of 30 June 2023, the instruments qualifying as cash flow hedges had the following characteristics:

Hedged item		Hedging instrument				Effective part of
Type	Nominal value EUR	Type	Nominal value EUR	Hedging ratio *	Fair value as at 30/06/2023	the derivative recorded in OCI
TAV Airports
Variable rate bank loans	642	Interest rate swap CFH	543	85%	50	(3)
AIG
Variable rate bank loans	92	Interest rate swap CFH	92	100%	-	1

* Ratio of nominal value of hedging instruments to nominal value of hedged items

There was no ineffectiveness at 30 June 2023 in relation to the interest rate swaps.

Exchange risk

The breakdown of financial assets and liabilities by currency is as follows:

(In € millions)	As at 30 Jun, 2023	Euro	TRY	USD	AED	INR	JOD	Other currencies
Other non-current financial assets	1,215	892	13	294	6	-	-	10
Contract assets	-	-	-	-	-	-	-	-
Trade receivables	1,113	943	15	41	2	-	72	40
Other receivables*	255	195	8	4	6	1	3	38
Other current financial assets	207	67	83	35	-	-	19	3
Cash and cash equivalents	2,251	2,013	11	78	4	4	110	31
Total financial assets	5,041	4,110	130	452	18	5	204	122
Non-current debt	8,365	7,892	13	457	-	1	-	2
Contract liabilities	2	2	-	-	-	-	-	-
Trade payables and other payables	822	554	11	16	1	-	208	32
Other debts and other non-current liabilities*	1,667	1,467	5	75	15	6	55	44
Current debt	2,016	1,767	5	244	-	-	-	-
Total financial liabilities	12,872	11,682	34	792	16	7	263	78

* Other receivables and other debts exclude all accounts which do not constitute, within the terms of IAS 32, contractual rights and obligations, such as tax and social security debts or receivables.

Other currencies relate primarily to the Oman rial (OMR), Saudi rial (SAR), Qatari rial (QAR) and Kazakh tenge (KAZ).

The Group is exposed to fluctuations in the Indian rupee against the euro. As the purchase price is partially denominated in Indian rupees, an appreciation/depreciation of Indian rupee compared to euro of 10% would have positive/negative impacts of €6 million on the profit before tax and €75 million on investment in associates.

The exchange rates used for the conversion of the financial statements of foreign subsidiaries, joint ventures and associated are as follows:

	As at 30 Jun, 2023		As at 31 Dec, 2022
	Closing rate	Average rate	Closing rate	Average rate
United Arab Emirates Dirham (AED)	0.24950	0.25184	0.25512	0.25888
Chilean peso (CLP)	0.00114	0.00115	0.00110	0.00109
Jordanian Dinar (JOD)	1.29379	1.30398	1.32659	1.34120
Indian Rupee (INR)	0.01117	0.01126	0.01134	0.01210
United States Dollar (USD)	0.91642	0.92502	0.93694	0.95096
Turkish Lira (TRY)	0.03552	0.04657	0.05016	0.05755

Liquidity risks

The breakdown of the residual contractual maturities of financial liabilities is as follows:

(In € millions)	Balance sheet value As at 30/06/2023	Total contractual payments As at 30/06/2023	0 - 1 year	1 - 5 years	Over 5 years
Bonds	7,823	7,900	1,000	2,600	4,300
Bank loans	1,929	1,965	641	872	452
Lease obligations	99	99	11	88	-
Other loans and assimilated debt	169	169	5	163	1
Interest on loans	128	133	65	7	61
Debt (excluding derivatives)	10,148	10,266	1,722	3,730	4,814
Trade payables and other payables	822	822	822	-	-
Contract liabilities	2	1	1	-	-
Other debts and other non-current liabilities*	1,667	1,667	940	537	190
Debt at amortised cost	12,639	12,756	3,485	4,267	5,004
Outgoings	-	72	14	28	30
Receipts	-	(122)	(30)	(53)	(39)
Hedging swaps	-	(50)	(16)	(25)	(9)
Total	12,639	12,706	3,469	4,242	4,994

* Other debts exclude all accounts which do not constitute, within the terms of IAS 32, contractual obligations, such as tax and social security debts.

COVENANTS

The financing agreements for concessions operated by the airport management companies of Groupe ADP in which AIG and TAV Airports are shareholders include early repayment clauses in the event of failure to comply with certain financial ratios. In the event of a sustained breach, the lenders may impose default conditions that may result in limited recourse to the shareholders. Contracts containing such covenants represent 15% of the Group's total borrowings as at 30 June 2023.

At that date, the ratios were complied with, with the exception of two international concessions AIG and TAV Tunisia (see note 9.4.1).

The debts recognized in the balance sheet including covenants break down as follows:

	Debt as at 30/06/2023	Amount with covenants	Amount in %
ADP	8,088	188	2%
Extime Duty Free Paris	50	-	0%
Relay@ADP	20	-	0%
AIG	143	143	100%
ADP International Americas	8	-	0%
ID Services	1	-	0%
TAVA	1,538	1,144	74%
TAV Tunisie	234	234	100%
TAV Izmir	187	187	100%
TAV Macedonia	69	69	100%
TAV Bodrum	109	109	100%
TAV Kazakhstan	197	197	100%
Almaty International Airport	183	183	100%
HAVAS	55	25	45%
TAV Ankara	140	140	100%
Others	364	-	0%
Total	9,847	1,474	15%

MATURITIES

The maturity schedule of loans and receivables is as follows:

(In € millions)	As at 30 Jun, 2023	0 - 1 year	1 - 5 years	Over 5 years
Receivables and current accounts from associates	447	26	49	372
Other receivables and accrued interest related to investments	219	1	-	218
Receivables, as lessor, in respect of finance leases	118	3	5	110
Guarantees passenger fee receivables	2	-	2	-
Other financial assets	455	177	272	6
Trade receivables*	1,113	1,113	-	-
Contract assets	-	1	-	-
Other receivables**	255	255	-	-
Loans and receivables	2,609	1,576	328	706

* Trade receivables include the portion due in less than one year of DGAC receivable of €405 million.

** Other receivables exclude all accounts which do not constitute, within the terms of IAS 32, contractual rights, such as tax and social security receivables.

Credit risks

Credit risk represents the risk of financial loss to the Group in the case where a customer or counter-party to a financial instrument failing to meet its contractual obligations. This risk essentially results from customer debts and investment securities.

The book value of financial assets represents the maximum exposure to credit risk. This maximum exposure to credit risk on the closing date is as follows:

(In € millions)	As at 30 Jun, 2023	As at 31 Dec, 2022
Equity instruments	107	189
Loans and receivables less than one year	1,576	1,350
Loans and receivables more than one year	1,034	425
Cash and cash equivalents	2,251	2,631
Interest rate swaps held for hedging purposes	50	54
Total	5,041	4,649

Loans granted to international subsidiaries were impaired as part of impairment tests carried out on companies consolidated by the equity method for an amount of €266 million for previous years and up to €10 million at 30 June 2023 (see Note 4.9.1).

The ADP Group may be required to provide financial support to these airport management companies in which it is a shareholder. In addition, if the negotiations to rebalance the situation of some of its international concessions fail, the Group could be led to make arbitration decisions, including withdrawing from the project.

Maximum exposure to credit risk concerning receivables and loans on the closing date, broken down by customers, is as follows:

(In € millions)	As at 30 Jun, 2023	As at 31 Dec, 2022
Air France	125	109
Easy Jet	12	9
Federal Express Corporation	15	18
Turkish Airlines	16	15
Other airlines	70	46
Subtotal airlines	243	197
Direction Générale de l'Aviation Civile	418	368
Other trade receivables	452	373
Other loans and receivables less than one year	463	412
Total loans and receivables less than one year	1,576	1,350

The anteriority of current receivables is as follows:

	As at 30 Jun, 2023
(In € millions)	Gross value	Net value
Outstanding receivables	984	981
Due receivables:
from 1 to 30 days	137	132
from 31 to 90 days	59	58
from 91 to 180 days	48	47
from 181 to 360 days	47	13
more than 360 days	410	345
Current loans and receivables (according to the schedule - see § Liquidity risks)	1,685	1,576

The development of trade receivables is detailed in note 4.4.

Financial instruments compensation

Derivatives contracts of the Group may include a compensation right if specific events occur such as a change in control or a credit event.

However, these contracts do not include any comprehensive compensation agreement conferring a legally enforceable right to compensate the financial instruments, nor collateralization agreement.

The following table presents the book value of the assets and liabilities derivatives and the impact of the compensation agreement mentioned above, as of 30 June 2023:

	Gross amounts recognized before	Amounts that are set off in the statement of financial	Net amounts presented in the statement of financial	Effect of "other offsetting agreements" (that do not meet the offsetting criteria of IAS 32) (d)		Net exposure (c) - (d)
(In € millions)	offsetting (a)	position (b)	position ( c) = (a) - (b)	Financial instruments	Collateral fair value
derivatives : interest rate swap	50	-	50	-	-	50
derivatives : currency swap	-	-	-	-	-	-
put options held on financial instruments	23	-	23	-	-	23
Total financial assets - derivatives	73	-	73	-	-	73
derivatives : interest rate swap	-	-	-	-	-	-
derivatives : currency swap	-	-	-	-	-	-
call options granted on financial instruments	(233)	-	(233)	-	-	(233)
Total financial liabilities - derivatives	(233)	-	(233)	-	-	(233)

9.6 Other financial assets

The amounts appearing on the balance sheet as at 30 June 2023 and 31 December 2022 respectively are broken down as follows:

Equity instruments - fair value through P&L Loans and receivables excluding finance leases receivables Receivables & current account from associates Receivables & current account from associates (before impairment)		portion
	107	107	-
	1,124	920	204
	447	421	26
	684	626	58
Impairment on Receivables & current account from associates	(237)	(205)	(32)
Other receivables and accrued interest related to investments	219	218	1
Guaranteed passenger fee receivable*	2	2	-
Other financial assets	456	279	177
Receivables, as lessor, in respect of finance leases	118	115	3
Derivative financial instruments	73	73	-
Total 1,422		1,215	207

* see note 6.1.1

(In € millions)	As at 31 Dec, 2022	Non-current portion	Current portion
Equity instruments - fair value through P&L	189	189	-
Loans and receivables excluding finance leases receivables	542	310	232
Receivables & current account from associates	181	153	28
Receivables & current account from associates (before impairment)	447	391	56
Impairment on Receivables & current account from associates	(266)	(238)	(28)
Other receivables and accrued interest related to investments	3	-	3
Guaranteed passenger fee receivable	15	4	11
Other financial assets	343	153	190
Receivables, as lessor, in respect of finance leases	120	115	5
Derivative financial instruments	54	54	-
Total	905	668	237

NOTE 10 Other operating income and expenses

Other operating income and expenses are significant and non-recurrent items at the level of the Group's consolidated performance.

This may involve the disposal of assets or activities, costs incurred related to a business combination, goodwill impairment, restructuring costs or costs related to a one-off operation.

As at 30 June 2023, the other operating income and expenses amounting to -€5 million (€8 million as at 30 June 2022) are mainly composed of provision impacts on RCC ( including pension reforms),PSE (Employment protection plan) PACT measures (including pension reform).

NOTE 11 Income tax

The tax charge for the first half is determined by applying to the pre-tax income of the entire Group the effective tax rate estimated at 30 June 2023 (including deferred tax). The pre-tax income for the half-year used for the calculation of the tax charge considers the taxes accounted for in accordance with the IFRIC 21 interpretation which are incurred unevenly over the year. Furthermore, Groupe ADP considers that the Contribution on the Added Value of Companies (CVAE) does not amount to income tax. This is therefore recognized as an operating expense.

11.1 Tax rate

Following provisions of the finance act for 2022, the current tax rate used by the Group as at 30 June 2023 amounts to 25% on taxable profits of French companies (25,83% including social contribution on profits of 3,30%).

11.2 Analysis of the income tax expense

Within the income statement, the income tax expense is detailed as follows:

(In € millions)	Half-year 2023	Half-year 2022
Current tax expense	(103)	(34)
Deferred tax income/(expense)	(7)	(25)
Income tax expense	(110)	(59)

These amounts do not include income tax on profit/loss associates and joint ventures, the amounts that appear for these items on the appropriate line of the income statement being net of income tax.

As a reminder, in 2021, the Group opted for the exceptional carry-back mechanism for the deficit recognized in respect of the year ended 31 December 2020, which was permitted by the 1st Amending Finance Act (LFR) for 2021. The entire 2020 deficit was carried back to the 2019 profit. €156 million based on the corporate income tax rate applicable to fiscal years beginning on or after 1 January 2022 (i.e., 25%).

This carry-back claim may be offset against tax payable in respect of subsequent years and, if not used, will be reimbursed at the end of a five-year period, i.e., in 2026.

In 2022, the Group used a part of this receivable on tax payables. The carry back receivable from the State amounted to €108 million.

11.3 Tax reconciliation

The reconciliation between the theoretical income tax based on the tax rate applicable in France and the effective expense/income tax is as follows:

(In € millions)	Half-year 2023	Half-year 2022
Net results from continuing activities	195	168
Share of profit or loss from associates and joint ventures	18	6
Expense / (Income) tax expense	110	59
Income before tax and profit/loss of associates	323	233
Theoretical tax rate applicable in France	25.83%	25.83%
Theoretical tax (expense)/income	(83)	(60)
Impact on theoretical tax of:
Different rate on taxable income and payment at source	-	(3)
Previously unrecognized tax loss carryforwards used in the period	1	2
Tax losses incurred in the period for which no deferred tax asset was recognized	(40)	(12)
Evolution of tax rates	-	1
Non-deductible expenses and non-taxable revenue	7	(9)
Tax credits	2	1
Investment incentives applicable in Turkey	(1)	4
Adjustments for prior periods	11	18
Additional tax in connection with the earthquake in Turkey *	(6)	-
Others adjustments	(1)	(1)
Effective tax (expense)/income	(110)	(59)
Effective tax rate	33.02%	25.51%

** In 2023, Turkish companies are subject to a one-time additional tax based on 2022 tax results to finance reconstruction after the two earthquakes in February 2023.

11.4 Table of changes in deferred tax assets and liabilities

Deferred tax assets and liabilities evolved as follows between the beginning and the end of the period:

(In € millions)	Assets	Liabilities	Net amount*
As at 1 January 2023	42	433	(391)
Amount recognized directly through equity on employee benefit obligations	-	(1)	1
Amount recognized directly through equity on fair value change	1	-	1
Amounts recognized for the period	(7)	-	(7)
Translation adjustments	(2)	(1)	(1)
As at 30 June 2023	34	431	(397)

*The amounts of deferred tax assets and liabilities are presented net for each taxable entity (IAS 12.74).

11.5 Current tax assets and liabilities

Current tax assets correspond to the amount to be recovered from the tax authorities. Current tax liabilities correspond to the amounts remaining to be paid to these authorities.

These tax assets and liabilities appear as follows:

(In € millions)	As at 30 Jun, 2023	As at 31 Dec, 2022
Current tax assets
Aéroports de Paris SA and tax-consolidated companies	20	109
Other consolidated entities	11	12
Total	31	121
Current tax liabilities
Aéroports de Paris SA and tax-consolidated companies	-	1
Other consolidated entities	12	14
Total	12	15

Contingent tax assets or liabilities are mentioned in note 15.

11.6 Unrecognized deferred tax assets

The main characteristics of non-activated tax loss carry-forwards and their time limit concern the following companies :

(In € millions)	As at 30 June 2023	Prescriptible in Y+1	Prescriptible in Y+2	Prescriptible in Y+3	Prescriptible in Y+4	Prescriptible in Y+5	Imprescriptible
Total	747	119	98	146	98	186	100

As of 30 June 2023, non-activated carried forward tax losses amount to €747 million. This non-activation results from the legal period for using tax losses carried forward in the relevant jurisdictions, combined with the expected profits according to the 3-5 years forecasts.

Several TAV Group entities have benefited from Turkish tax amnesty law no. 7440 covering the years 2021 and 2022. Under this law, companies benefiting from it will not be subject to tax audits for these years once they have increased their tax bases for the years concerned. The law stipulates that, for 2021, half of all tax loss carry-forwards and, for 2022, all tax loss carry-forwards will be eliminated. As a result, there is no financial impact on entities with no tax loss carry-forwards.

NOTE 12 Cash and cash equivalents and Cash flows

12.1 Cash and cash equivalents

Cash and cash equivalents comprise current accounts at banks and short-term liquid investments subject to negligible risks of fluctuations of value. Cash equivalents consist essentially of money market funds. Bank overdrafts are not included in cash and are reported under current financial liabilities.

"Cash management financial assets" comprises units in UCITS, made with a short-term management objective, satisfying the IAS 7 criteria for recognition as cash.

Cash and cash equivalents break down as follows:

(In € millions)	As at 30 Jun, 2023	As at 31 Dec, 2022
Marketable securities	694	683
Cash*	1,557	1,948
Cash and cash equivalents	2,251	2,631
Bank overdrafts**	(2)	(1)
Net cash and cash equivalents	2,249	2,630

* Including €95 million of cash dedicated to aid to local residents funding collected through the tax on airborne noise nuisances (TNSA).

** Included in Current liabilities under debt

As part of its cash management, the ADP Group has mainly invested in euro-denominated money market funds with a variable short-term net asset value (VNAV). Cash and cash equivalents not available to the Group in the short term, included in cash and cash equivalents, correspond to the bank accounts of certain subsidiaries for which the conditions for repatriating funds are complex in the short term, mainly for regulatory reasons.

12.2 Cash flows

12.2.1 Cash flows from operating activities

(In € millions)	Half-year 2023	Half-year 2022
Operating income	444	348
Income and expense with no impact on net cash	393	244
Net financial expense other than cost of debt	(21)	17
Operating cash flow before change in working capital and tax	816	609
Change in working capital	(106)	22
Tax expenses	(28)	(11)
Impact of discontinued activities	(1)	1
Cash flows from operating activities	681	621

▪ Income and expense with no impact on net cash

(In € millions)	Half-year 2023	Half-year 2022
Depreciation, amortisation and impairment losses (excluding current assets)	381	269
Profit/loss of associates	18	6
Net gains (or losses) on disposals	1	(1)
Other	(7)	(30)
Income and expense with no impact on net cash	393	244

▪ Change in working capital

(In € millions)	Half-year 2023	Half-year 2022
Inventories*	(11)	-
Trade and other receivables	(212)	(110)
Trade and other payables	117	132
Change in working capital	(106)	22

* Variation mainly linked to fuel inventories at Almaty and inventory count at Extime Duty Free Paris.

The change of trade and other receivables is mainly explained by ADP SA, Extime Duty Free, AIG and TAV Ankara.

12.2.2 Cash flows from investing activities

(In € millions)	Half-year 2023	Half-year 2022
Purchase of tangible assets, intangible assets and investment property	(353)	(270)
Change in debt and advances on asset acquisitions	(38)	(104)
Acquisitions of subsidiaries and investments (net of cash acquired)	(81)	(397)
Proceeds from sale of subsidiaries (net of cash sold) and investments	10	11
Change in other financial assets	(472)	(18)
Proceeds from sale of property, plant and equipment	2	4
Proceeds from sale of non-consolidated investments	92	-
Dividends received	61	10
Cash flows from investing activities	(779)	(764)

The change in other financial assets includes the loan granted to GMR for €331 million and the payment of the initial fee of €119 million to the Turkish Civil Aviation Authority for the renewal of the Ankara airport concession.

▪ Purchase of property, plant & equipment and intangible assets

The investments made by the Groupe ADP are classified within a nomenclature, composed of the following seven investment programs:

Renovation and quality : investments meant to renovate current property in order to reduce obsolescence or improving its quality, as well as investments in retail spaces;
Increases in capacity : investments to increase assets capacity;
Cost of studies and supervision of works (FEST): design and work supervision costs for the production of an asset;
Real estate development : investments to develop property as well as cargo and aeronautical facilities maintenance;
Restructuring : Investments to reconfigure the arrangement of existing assets ;
Security: Investments financed by the airport tax, mainly related to airport safety and security services.
Other.

The amount of purchase of property, plant and equipment and intangible assets is broken down in the table below:

(In € millions)	Notes	Half-year 2023	Half-year 2022
Purchase of intangible assets	6	(13)	(10)
Purchase of tangible assets and investment property (excluding rights of use)	6	(340)	(260)
Purchase of tangible assets, intangible assets and investment property		(353)	(270)

Details of this expenditure are as follows:

(In € millions)	Half-year 2023	Half-year 2022
Renovation and quality	(73)	(58)
Increases in capacity	(73)	(60)
Cost of studies and supervision of works (FEST)	(30)	(24)
Real estate development	(69)	(72)
Restructuring	(30)	(13)
Security	(36)	(32)
Other	(42)	(11)
Total	(353)	(270)

The main investments in the first semester of 2023 are :

◆ For Paris Charles de Gaulle Airport:
- the purchase of standard 3 hold baggage screening equipment related to European regulation at the terminal 2C at Paris – Charles de Gaulle ;
- the mutualization of the baggage handling systems for short connections to a unique system equipped of standard 3 hold baggage srceening ;
- the pursue of the preparatory works for the construction of the CDG Express ;
- the construction of a water channel from the airport to the Marne ;
- the purchase of standard 3 hold baggage screening equipment related to European regulation for the terminal 2A at Paris – Charles de Gaulle ;
- the purchase of standard 3 hold baggage screening equipment related
Acquisition of subsidiaries and associates (net of acquired cash)

to European regulation for the terminal 2D at Paris – Charles de Gaulle ;

the rehabilitation of the runway 1 and the associated taxiways ;
◆ For Paris Orly Airport:
- the preparatory work before the construction of the future Grand Paris station ;
- the East baggage handling system compliance in Orly 4 ;
- the creation of a new cold storage facility ;
◆ For Paris Le Bourget Airport and general aviation aerodromes, investments mainly concerned security projects as video protection and security fences ;
◆ In the first half of 2023, Aéroports de Paris SA also made investments in its support functions and projects common to the platforms, including IT.

(In € millions)	Half-year 2023	Half-year 2022
Acquisitions of subsidiaries and investments (net of cash acquired)	(81)	(397)

As of 30 June 2023, the flow related to the financial investments, the acquisitions of subsidiaries and equity interests is mainly due to:

The payment of an earn-out for the Almaty concession in the amount of €47 million.

In 2022, the flow related to the financial investments, the acquisitions of subsidiaries and equity interests was mainly due to:

€375 million on the Antalya airport concession

▪ Proceeds from sale of non-consolidated investments

Proceeds from sale of non-consolidated investments correspond to the receipt of proceeds from the sale of 50% of the shares of Extime Duty Free Paris and Extime Media for respectively €81 million and €9 million.

12.2.3 Cash flows from financing activities

(In € millions)	Half-year 2023	Half-year 2022
Proceeds from long-term debt	306	340
Repayment of long-term debt	(134)	(564)
Repayments of lease liabilities and related financial charges	(10)	(10)
Capital grants received in the period	2	10
Revenue from issue of shares or other equity instruments	-	(2)
Net purchase/disposal of treasury shares	(1)	-
Dividends paid to shareholders of the parent company	(309)	-
Dividends paid to non-controlling interests in the subsidiaries	(8)	(7)
Change in other financial liabilities	1	12
Interest paid	(162)	(174)
Interest received	38	(2)
Impact of discontinued activities	-	-
Cash flows from financing activities	(277)	(397)

▪ Dividends paid

Details of the dividends paid to shareholders of the parent company are available in note 7.1.5.

▪ Long-term debt proceeds and repayments (interest included)

Proceeds (€306 million) and repayments (€135 million) of long-term debt as well as interest paid and received as at 30 June 2023 are detailed in note 9.4.1.

▪ Change in other financial liabilities

The change in other financial liabilities mainly corresponds to the change in restricted foreign currency bank accounts for €52 million offset by the GAL earn-out payment of -€51 million (deposit of tranches 2 to 5 in a JP Morgan escrow account) (see note 9.4.2).

NOTE 13 Related parties disclosure

In accordance with IAS 24, the Group discloses the following related parties:

associated and jointly controlled companies;
the State, public institutions and State participations;
and its senior executives and shareholders.

As of 30 June 2023, the information relating to related parties is identical to that of 31 December 2022 (see annual report of 31 December 2022) with the exception of the signature of an engineering, procurement and construction (EPC) contract for an amount of €202 million, with a joint venture formed by TAV Construction and Sera related to additional investments for the capacity increase of Ankara Esenboğa Airport. On top of EPC amount, there is a price adjustment mechanism up to 7.5% of the total EPC amount.

NOTE 14 Off-balance sheet commitments

14.1 Commitments granted and received

Off-balance sheet commitments and contingent assets and liabilities are presented below:

(In € millions)	As at 30 Jun, 2023	Of which ADP SA	Of which subgroup TAV	As at 31 Dec, 2022
Off-balance sheet commitments given related to financing	82	82	-	-
Off-balance sheet commitments given related to operating activities	3,111	708	2,345	2,495
Guarantees	1,308	2	1,306	984
DHMI	114	-	114	95
Tunisian Government	16	-	16	16
Saudi Arabian Government	12	-	12	12
Fraport Antalya	873	-	873	687
TAV Ankara	140	-	140	687
TAV Kazakhstan (Almaty)	46	-	46	47
Guarantees on first demand	193	155	-	194
CDG Express	150	150	-	150
Commitments for the acquisition of assets (of which EPC contract)*	1,452	413	1,039	1,141
CDG Waterpipe Marne	41	41	-	-
ORY renovation track 2	26	26	-	-
CDG Salon hospitality	21	21	-	-
CDG Creation baggage sorting system	26	26	-	42
ORY P2 ESPLANADE	13	13	-	39
CDG Terminal 2 D et C	27	27	-	42
EPC Contracts	1,039	-	1,039	841
Other	158	138	-	176
GI CDG Express	138	138	-	133
Total Commitments granted	3,193	790	2,345	2,495
Off-balance sheet commitments given related to operating	269	164	81	261
activities Guarantees	151	52	81	143
Guarantees on first demand	115	109	-	112
Other	3	3	-	6
Total Commitments received	269	164	81	261

* TAV's EPC (engineering, procurement and construction) Contracts have been added to December 2022 figures in comparison with what has been published for December 2022

Aéroports de Paris SA

Guarantees correspond mainly to securities accorded to loans to staff members, as well as guarantees accorded by Aéroports de Paris SA on behalf of ADP Ingénierie for the benefit of different customers of its subsidiaries.

Compared to year-end 2022, irrevocable commitments to acquire assets (€300 million) increased by €113 million. This increase is due to the resumption of capital expenditure up to 2025.

The Group's employee benefit commitments are presented in note 5.

The commitments received are mainly guarantees from the beneficiaries of AOTs (temporary authorisations to occupy public property or Autorisation d'Occupation Temporaire du domaine public), civil code leases, commercial concessions and suppliers.

In addition, pursuant to article 53 in the operating specifications of Aéroports de Paris SA, the minister in charge of Civil Aviation has a right of refusal regarding any contribution, disposal or grant of security involving certain plots of land – and the assets on such land – belonging to Aéroports de Paris SA. The lands concerned by this provision are listed in those same operating specifications.

The law of 20 April 2005 provides that in the event of a partial or total shutdown of air traffic at one of the airports owned by Aéroports de Paris SA, 70% of the capital gain due to the difference between the market value of the assets and the book value thereof must be paid to the French government. This provision relates in particular to the General Aviation Aerodromes.

Other commitments granted mainly include the amount of capital contributions to be made by Aéroports de Paris SA to finance the CDG Express project for an amount of €138 million. This project is in fact partially financed by an equity bridge loan contract which will have to be reimbursed at

commissioning by the Gestionnaire d'infrastructure shareholders (GI shareholders). As a reminder, Aéroports de Paris SA holds 33% of the GI.

Other commitments given related to financing include the commitment to make the remaining payments on the investment funds for €82 million.

In view of the agreements signed between ADP SA, GMR-E, GIL, GIDL & GAL in March 2023, ADP Group is committed to exchanging its GAL shares for GIL shares if the proposed merger goes ahead. In principle, this merger should be completed in the first half of 2024. It is not certain, however, as it is subject to the administrative and shareholder approvals of the parties involved in the merger.

If the merger goes ahead, its cost would correspond to a listing service equal to the cumulative dilution of 3.3% in GAL's net assets (from 49% to 45.7% interest) and 45.7% of the fair value of GIL's net assets excluding GAL at the merger date. This impact will not be known until the merger date.

TAV AIRPORTS

Commitments given by TAV Airports and its subsidiaries amount to €1,306 million as at 30 June 2023 and are mainly letters of guarantee:

given mainly to third parties (customs, lenders and customers), to the General Directorate of State Airports Authority (DHMI) as well as Saudi Arabian, Tunisian and Macedonian governments;
issued from Build Operate Trasnsfer agreements (BOT agreements), from concession agreements and lease contracts.

Main guarantees given to DHMI:

TAV Ege and TAV Milas Bodrum are both obliged to give a letter of guarantee at an amount equivalent to €37 and €43 million each to DHMI;

Main guarantees given to GACA (General Authority of Civil Aviation) in Saudi Arabia:

The Group is obliged as 30 June 2023 to give a letter of guarantee at an amount equivalent of USD 13 million (i.e. €12 million) to GACA according to the BTO agreement signed with GACA in Saudi Arabia.

Main guarantees given to OACA (Office de l'aviation Civile et des Aéroports) in Tunisia:

The Group is obliged as of 30 June 2023 to give a letter of guarantee at an amount equivalent of €9 million to the Ministry of State Property and Land Affairs and €7 million to OACA according to the BOT agreements and its amendments signed with OACA in Tunisia.

Main guarantees given and received for Almaty:

SPA Claim Guarantee: This guarantee is related with any financial claims raised for the period before the terminal handover to the Group. The Group guarantees that if there are any financial claims such as tax penalty, court claim etc, the Group is obliged to cover this loss. On the other hand, in case of such claims, the Group received a performance guarantee from the seller amounting to USD 35 million to cover such losses.

ENS Guarantee: In case of any environmental or social breach, there is 12 months cure period to solve such issues. If the issues remain unsolved, the Group is obliged to refinance the loan from another bank group. It must be noted that this is a very unlikely situation, considering all lenders are DFIs such as IFC and EBRD, also government is committed to follow all environmental and social policies of lenders in the dead under the government support agreement.

The Group is obliged to fund shortfalls of AIA amounting up to USD 50 million until the later of 30 June 2025 or financial completion date. Financial completion date is defined as minimum 1.30 debt service coverage ratio and minimum two principal payments are made. The group provided a letter of credit amounting to USD 50 million to cover this obligation.

In addition to the commitments mentioned in the table, there are EPC Completion Guarantee. This guarantee is triggered in case of EPC cost overrun. It must be noted that EPC cost is fixed under EPC contract as USD 197 million. On the other hand, the Group received 10% (USD 20 million) performance bond which covers the obligations of constructor under EPC Contract. Additionally, the Group received (USD 6 million) advance bond from the constructor.

Main guarantees given for Antalya:

TAV Group was obliged to give a letter of guarantee for TAV Antalya Yatırım at an amount equivalent of €77 million to DHMİ. As at 31 December 2022, this commitment has been undertaken by TAV Antalya Yatırım.

TAV Group has provided a guarantee for 50% of the bank loan used in the financing of the upfront payment for an amount of €873 million.

Main guarantees given for Ankara:

TAV Group has provided a guarantee for 100% of the bank loan used in the financing of the upfront payment for an amount of €140 million.

NOTE 15 Litigations, legal and arbitration proceeding

In the ordinary course of its business, Group ADP is involved in a certain number of judicial and arbitral proceedings. The Group is also subject to certain claims and lawsuits which fall outside the scope of the ordinary course of its business.

The amount of provisions made is based on Groupe ADP's assessment of the level of risk on a case-by-case basis and depends on its assessment of the basis for the claims, the stage of the proceedings and the arguments in its defense, it being specified that the occurrence of events during proceedings may lead to a reappraisal of the risk at any moment.

Main litigations and arbitration proceedings presented below are accounted as contingent liabilities.

A dispute is pending in Turkish courts regarding the rate of withholding tax applied to dividends paid by a Turkish subsidiary.

In the context of the U.S. government's sanctions against Russia, Belarus and Iran, TAV received a letter in January 2023 from the U.S. Bureau of Industry and Security ("BIS"), Office of Export Enforcement ("OEE") like other airport operators in Turkey. The latter recalls the regulatory framework of the sanctions regime applicable in the United States, in particular in connection with the Export Administration Regulations ("EAR"), lists the aircraft specifically targeted by the said sanctions regime (aircraft containing a minimum of 25% of components of American origin and operated by Russian, Belarusian and Iranian airlines) and commits TAV to assess the risks involved in providing services to the listed aircraft operating in Turkish and Georgian airspace. TAV, in conjunction with the Turkish authorities and BIS, assessed this risk and took the appropriate decisions. BIS indicated to TAV that these decisions were appropriate and that no further action was required.

Following the referral made by ADP Ingénierie to the Public Prosecutor's Office of facts likely to be qualified as offences and potentially committed in connection with the conclusion, more than 10 years ago, of contracts relating to projects in Libya and the Middle East, ADP Ingénierie could be subject to legal proceedings.

NOTE 16 Subsequent events

TAV Airports sells part of its stake in Medina airport

On 7 July 2023, TAV Airports signed an agreement with Mada International Holding (Mada) for the sale of a 24% stake in Tibah Airports Development (Tibah), the company operating Medina airport in Saudi Arabia, held equally by TAV Airports and Mada. Under the terms of the agreement

◆ TAV Airports will transfer 24% of Tibah's shares to Mada for USD 135 million, bringing TAV Airports' stake in Tibah to 26% (from 50% previously);
◆ In the event that the number of passengers handled at Medina airport during 2023 is less than 8.14 million, and the force majeure period is thus extended by one year, the transfer price will be revised by USD 30 million, to USD 165 million.
◆ On completion of the Tibah share sale, expected in the second half of 2023, TAV Airports will also transfer to Mada 48% of the balance of the shareholder loan granted to Tibah by TAV Airports.

In addition, a new shareholder agreement will be signed with Mada, maintaining the current method of co-controlling governance of Tibah.

AI Terminal

Aéroports de Paris

1076_ir_2023-07-27_73763d4e-2ec2-4b3c-935a-07439c6e3ec2.pdf

Aéroports de Paris SA Interim financial report as of 30 June 2023

Table of contents

1 STATEMENT OF THE OFFICERS IN CHARGE OF THE INTERIM FINANCIAL REPORT

1.1 Officers in charge of the interim financial report

1.2 Statement

2 Significant events of the 1st half of 2023

2 INTERIM REPORT ON ACTIVITY

2.1 Significant events of the 1st half of 2023

Contemplated merger between GIL & GAL

Renewal of Ankara Airport concession agreement

Ranking results of Skytrax 2023

Introduction of a waiting time barometer for borders controls in Paris

Significant events of the 1st half of 2023

Regulated scope performance in 2022

Launch of Abelia, Aéroports de Paris SA new employee shareholding scheme

New salary measures from July 1st, 2023

Project for TAV Airports to sell part of its stake in Medina airport

Significant events of the 1st half of 2023

Aéroports de Paris rating confirmed by S&P Global Ratings

Deployment of complementary hospitality initiatives

JCDecaux and Groupe ADP launch the Extime JCDecaux Airport

Groupe ADP chooses Lagardère Travel Retail as co-shareholder in the future joint venture Extime Travel Essentials Paris

Support for low-carbon aviation and electric urban air mobility

The Paris 2024 Olympic and Paralympic Games as a driver of innovation towards the airport of tomorrow

2.2 Evolution of 2023 half-year traffic

Group Traffic1:

Traffic at Paris Aéroport

Traffic assumptions, forecasts and targets 2023-2025

2.3 Traffic assumptions, forecasts and targets 2023-2025

2.4 Presentation of Groupe ADP's 2022 half-year results

Half-year 2023 consolidated accounts

Revenue

EBITDA

Net result attributable to the Group

Analysis by segment

Aviation – Parisian platforms

Retail and services – Parisian platforms

2 Presentation of Groupe ADP's 2022 half-year results

Real Estate - Parisian platforms

International and airport developments

Other activities

Consolidated balance sheet as of 30 June 2023

2.5 Consolidated balance sheet as of 30 June 2023

2 Half-Year 2023 consolidated statement of cash flows

2.6 Half-Year 2023 consolidated statement of cash flows

2.7 Financial debt

Cash and investments

Financial debt

2.8 Risk factors and uncertainties for the 2nd half of 2023

2 Risk factors and uncertainties for the 2nd half of 2023

Evolution of risk factor 3-A: Network management risks

Detailed risk factor information

Risk management system

2.9 Events having occurred since 30 June 2023

TAV Airports sells part of its stake in Medina airport

2.10 Main related party agreements

3 STATUTORY AUDITOR'S REVIEW REPORT ON THE INTERIM FINANCIAL INFORMATION

1. Conclusion on the financial statements

2. Specific verification

STATUTORY AUDITOR'S REVIEW REPORT ON THE INTERIM FINANCIAL INFORMATION

4 FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND 2023 FINANCIAL STATEMENTS

Table of contents

Notes to the consolidated financial statements

4.1 Groupe ADP Consolidated Financial Statements as of 30 June 2023

Key figures

Groupe ADP Consolidated Financial Statements as of 30 June 2023

Glossary

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Assets

Shareholders' equity and liabilities

Consolidated Statement of Cash flows

Consolidated Statement of Changes in Equity

NOTE 1 Basis of preparation of consolidated financial statements

1.1 Basis of preparation of financial statements

Statement of compliance