AFD - 2018 Registration document

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING PRINCIPLES ADOPTED BY THE EUROPEAN UNION 6 Notes to the consolidated financial statements

6.2 Notes to the consolidated financial statements

6.2.1 Significant events of the period 6.2.1.1 Financing of the Group’s activity To finance the growth in activity on its own behalf, in 2018 AFD made five bond issues in the form of public issues and sixteen private placements, as well as nine tap issues, for a total volume of €6.5B. 6.2.1.2 Appropriation of 2017 earnings Pursuant to Article 79 of the amending 2001 Finance Bill N° 2001-1276 of 28 December 2001, the amount of the dividend paid by AFD to the French State is determined by ministerial order. The 2017 financial statements were approved by the Board of Directors on 11 April 2018. The Minister of the Economy and Finance determined the 2017 dividend to be paid by AFD to the French State. It amounted to €42.9M, which equates to 20% of AFD’s 20 net income of €20M and was paid after publication in the Official Journal. Residual earnings after dividends (i.e. €171.7 million) were retained in reserves. 6.2.1.3 Fisea Capital increase AFD paid up its subscribed shares in the subsidiary Fisea for €20.0M following the capital increase approved by shareholders on 13 June 2018. 6.2.1.4 End of the economic and social union between AFD and IEDOM The economic and social union between AFD and IEDOM ended on 28 February 2018. Employees seconded by AFD to IEDOM, and IEDOM staff seconded to AFD local offices in French Overseas Departments and Collectivities, were invited to choose between (i) the continuation of their secondment, or (ii) the transfer of their employment contracts to the company they were working for at that time. At 28 February 2018, 59 members of staff had opted to return to AFD and 4 had decided to remain with IEDOM. At 31 December 2018, the net impact of the transfer of staff between AFD and IEDOM was an increase in provisions for employee benefit obligations of €3.7M. The impact on 2018 income is neutral following the reinvoicing of this commitment to IEDOM.

6.2.1.5 Initial measurement of the healthcare plan for staff working overseas This plan consists of directly reimbursing local AFD staff for a select range of healthcare benefits, depending on the country. These various plans cover active AFD staff and former staff who are now retired, together with their dependants. AFD offers its staff lifetime maintenance of this cover once they have retired. The commitment provisioned by AFD under these plans corresponds to the commitment towards current retirees and future retirees who are still working. At 31 December 2018, the initial measurement of this commitment came to €9.04M. It was recognised by adjusting AFD Group has implemented the new standard for financial instruments, IFRS 9, which has been mandatory since 1 January 2018. The effects of the initial application of IFRS 9 are disclosed in section 6.2.4 “Impact of the initial application of IFRS 9”. 6.2.2 Accounting standards applied to Agence Française de Développement The financial statements given in this document include the summary financial statements and the notes to the financial statements. They are presented in accordance with French Accounting Standards Authority (ANC) Recommendation 2017-02 of 2 June 2017 concerning the format of the summary documents of companies subject to banking and finance regulations under international accounting standards. The consolidated financial statements of AFD Group at 31 December 2018 were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The accounting standards used in the preparation of AFD’s financial statements at 31 December 2018 are described in Note 6.2.3.2. These consolidated financial statements are presented in thousands of euros. opening reserves in accordance with IFRS. 6.2.1.6 Initial application of IFRS 9 within AFD Group

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REGISTRATION DOCUMENT 2018