AFD - 2018 Registration document

First page Table of contents Next page Last page

Content	2
A word from the CEO	4
Our Key figures	5
Our strategy 2018–2022	7
4 main operating regions	8
Methodology and glossary	10
1. Presentation of AFD	11
1.1 General information	12
1.1.1 Legal status	12
1.1.2 General information about AFD’s capital	12
1.1.3 Current breakdown of share capital and voting rights	12
1.1.4 AFD’s stock issues	12
1.1.5 Dividends	12
1.2 AFD Group’s 2018–2022 strategy	13
1.2.1 AFD Group’s missions and commitments	13
1.2.2 AFD Group’s action	13
1.3 AFD operations	14
1.3.1 General comments	14
1.3.2 Activities of AFD on its own behalf	14
1.3.3 Other AFD activities	15
1.3.4 AFD mandate-specifi c activities	16
1.3.5 AFD’s operating scope (see Appendix I)	16
1.3.6 Information about any restrictions on the use of capital that have materially affected, or could materially affect, directly or indirectly, the issuer’s operations	16
1.4 Financing activities on its own behalf	17
1.5 AFD Group	19
1.5.1 Consolidation scope	19
1.5.2 Information about subsidiaries	19
1.5.3 Presentation of subsidiaries	20
1.6 Activities of the Agence Française de Développement group in 2018	22
1.6.1 Global economy	22
1.6.2 Information about offi ces and activities at 31 December 2018	24
1.6.3 AFD Group activities	25
1.6.4 AFD’s activities in foreign countries	27
1.6.5 AFD activities in French Overseas Departments and Collectivities	31
1.6.6 Intellectual output	32
1.6.7 Proparco’s activity	34
2. Statement of non-financial performance	35
2.1 The business model	36
2.2 Identifi cation of the main non-fi nancial challenges and risks	37
2.3 Transparency and dialogue with stakeholders	39
2.3.1 Transparency of funds granted	39
2.3.2 Dialogue with stakeholders	39
2.4 Managing the risks and impacts of our action	40
2.4.1 AFD’s management of environmental and social impacts, and the procedure for managing complaints	40
2.4.2 Management of environmental and social impacts at Proparco	42
2.4.3 Human rights due diligence	42
2.5 Impact of the group’s activity on sustainable development	43
2.5.1 Impact of AFD’s activity	43
2.5.2 Impact of Proparco’s activity	44
2.5.3 Impact of the Group’s activity on climate change	45
2.6 Coordination with development players: the “automatic switch to partnership”	47
2.6.1 Partnerships with civil society organisations	47
2.6.2 Partnerships with European and international players	47
2.6.3 Support for project management and the building of capacities	47
2.7 Fair practices	48
2.7.1 Initiatives for preventing corruption, fraud, money laundering, terrorist financing and tax evasion	48
2.7.2 Checks made during a project’s life cycle	48
2.7.3 Checks carried out as part of the foreign public procurement process	49
2.7.4 Counterparty commitments	49
2.7.5 Information reporting systems	49
2.7.6 Training of Group employees	49
2.7.7 Initiatives undertaken to prevent tax evasion	50
2.8 A meaningful work environment	51
2.8.1 The ethics system	51
2.8.2 Skills development, employability and training	51
2.8.3 Employee dialogue and social relations	52
2.8.4 Quality of employee working conditions and safety	52
2.9 Report from one of the statutory auditors , as a designated independent third party, on the voluntary consolidated statement of non-fi nancial performance included in the management report	54
3. Corporate governance	57
3.1 Report on corporate governance	58
3.1.1 Separation of the functions of Chairman and Chief Executive Officer	58
3.1.2 Executive Committee	59
3.1.3 The Board of Directors	59
3.1.4 Compensation and benefi ts of the executive offices	65
3.1.5 COMPENSATION AND SOCIAL BENEFITS OF CORPORATE OFFICERS	65
3.1.6 Other information	65
3.2 Compensation policy and practices	67
3.2.1 Compensation policy governance	67
3.2.2 Principal compensation policy characteristics	67
3.2.3 Information about compensation for executive offi cers and individuals whose professional activities have a signifi cant impact on the company’s risk profile	69
4. Risk management	71
4.1 Risk factors	72
4.2 Basel III Pillar 3	73
4.2.1 General principles	73
4.2.2 Scope of application	73
4.2.3 Implementation of IFRS 9	73
4.2.4 Capital	74
4.2.5 Risk exposure and evaluation procedures	77
4.3 Risk management	84
4.3.1 Internal control and risk monitoring	84
4.3.2 Internal control procedures and organisation of audit trail for accounting and financial information (Article L.225-100-1-5)	86
4.3.3 Credit risk	87
4.3.4 Comprehensive interest rate, foreign exchange, liquidity and market risks	87
4.3.5 Major risk ratio	87
4.3.6 Other operational risks	88
5. Financial information	91
5.1 Recent changes and future prospects	92
5.1.1 Recent changes	92
5.1.2 Future prospects	92
5.1.3 Borrowings	93
5.1.4 Information about trends	93
5.1.5 Significant change in the issuer’s financial position	93
5.2 Post-closing events	94
5.3 Economic presentation of the consolidated financial statements	94
5.3.1 Consolidated balan ce sheet	94
5.3.2 Consolidated income statement	97
6. Consolidated financial statements prepared in accordance with IFRS accounting principles adopted by the European Union	101
6.1 Overview	102
6.1.1 Balance sheet at 31 December 2018	102
6.1.2 Income statement at 31 December 2018	104
6.1.3 Net income and gains and losses booked directly as equity at 31 December 2018	105
6.1.4 Cash flow statement at 31 December 2018	106
6.1.5 Statement of changes in shareholders’ equity from 1 January 2017 to 31 December 2018	107
6.2 Notes to the consolidated fi nancial statements	108
6.2.1 Significant events of the period	108
6.2.2 Accounting standards applied to Agence Française de Développement	108
6.2.3 Principles for the preparation of the consolidated financial statements of AFD Group at 31 December 2018	110
6.2.4 Impact of the initial application of IFRS 9	122
6.2.5 Notes to the financial statements at 31 December 2018	136
6.2.6 Risk Information	156
6.2.7 Additional information	167
6.3 Statutory auditors’ report on the consolidated financial statements	169
6.4 Statutory auditors’ special report on regulated agreements and commitments	174
6.5 Fees	179
7. AFD’s annual financials statements	181
7.1 Highlights of the period	185
7.1.1 Growth of the balance sheet	185
7.1.2 Financing of the Group’s activity	185
7.1.3 Appropriation of 2017 earnings	185
7.1.4 Fisea capital increase	185
7.1.5 End of the UES linking AFD and IEDOM	185
7.1.6 Initial estimate of the health insurance agreement for expatriate employees	185
7.1.7 Accounting for credit risk provisions: change from French GAAP to IFRS	185
7.2 Accounting principles and assessment methods	186
7.2.1 General comments	186
7.2.2 Conversion of foreign currencies	186
7.2.3 Loans to credit institutions and customers	186
7.2.4 Short-term and long-term investments	187
7.2.5 Shares in related businesses, equity stakes and long-term investments	187
7.2.6 Bonded debt	188
7.2.7 Subsidies	188
7.2.8 Fixed assets	188
7.2.9 Forward financial instruments	188
7.2.10 Provisions	189
7.2.11 Reserve for General Banking Risk (RGBR)	192
7.2.12 Subordinated debt	192
7.2.13 Financing commitments	193
7.2.14 Guarantee commitments	193
7.2.15 Disclosure on non-cooperating States and territories	193
7.2.16 Other information related to consolidation	193
7.2.17 Post-closing events	193
7.3 Notes to the financial statements at 31 December 2018	194
7.4 AFD’s financial results over the last five years	206
7.5 Statutory auditors’ report on the annual financial statements	207
8. Person responsible for the registration document and the audit of the financial statements	213
8.1 Name and position	214
8.2 Certification of the person responsible	214
8.3 Name, Address and Qualification of the Financial Statements’ statutory auditors	214
8.4 Information Policy	214
9. Additional information	215
9.1 Cross-reference table of the management report	216
9.2 Incorporated by reference	217
9.3 Cross-reference table of the Registration Document	217
9.4 Cross-reference table of the CRR articles and the Pillar III report tables	219
9.5 Appendix 1 – AFD’s operating region	222
9.6 Appendix 2 – AFD simplified balance sheet based on French GAAP	225
9.7 Appendix 3 – AFD simplified income statement based on French GAAP	226
9.8 Appendix 4 – Key ratios and indicators	227
9.9 Appendix 5 – Results of operating activities for the last 5 reporting years (parent company DTC)	227
9.10 Appendix 6 – AFD approvals	228
9.11 Appendix 7 – Summary table of AFD’s and Proparco’s loans in foreign countries	229
9.12 Appendix 8 – Table of Proparco’s approvals	232
9.13 Appendix 9 – Note on DPEF methodology	234
9.14 Appendix 10 – DPEF appendices	236

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