AFD - 2018 Registration document

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING PRINCIPLES ADOPTED BY THE EUROPEAN UNION

Notes to the consolidated financial statements

31/12/2018

31/12/2017

% of control and vote held by minority interests

Share of shareholders’ equity (of which income)

% of control and vote held by minority interests

Share of shareholders’ equity (of which income)

Share of net income

Share of net income

In thousands of euros

Proparco

35.05%

22,542

208,502

35.05%

19,750

286,109

Other subsidiaries

-167

8,021

-196

8,493

TOTAL MINORITY SHARE TOTAL GROUP SHARE

22,374

216,524

19,554

294,602

115,225 5,980,012

312,805 5,798,892

At 31 December 2018, the company’s share capital amounted to €5.6M. It is 100% owned by AFD. P the Société de Gestion des Fonds de Garantie d’Outre-mer (Sogefom), the French overseas guarantee fund management company whose shares AFD bought back from the Institut d’émission d’outre-mer (IEOM), the central bank for French Overseas Departments and Collectivities; On 12 August 2003, at the request of the French Ministry of the Economy, Finance and Industry and the Ministry of Overseas France. At 31 December 2017, the company’s share capital amounted to €1.1M. It is 100% owned by AFD. P Fisea (Investment and Support Fund for Businesses in Africa) was created in April 2009. This simplified joint-stock company with registered capital of €210.0M is almost wholly owned by AFD, with Proparco owning one share. It is managed by Proparco; P TR Propasia LTD, a public limited company created in October 2008, whose corporate purpose is purchasing equity stakes in companies or organisations that promote environmentally-friendly economic and social development in Asia. The company is registered in Hong Kong and has $10M in share capital. It is a wholly-owned subsidiary of Proparco. At 31 December 2018, 52% of its share capital, i.e. $5.2M, was fully paid up. Equity method Companies over which AFD has significant influence are accounted for by the equity method. Significant influence means the power to participate in the financial and operating policy decisions of the subsidiary but without having control over them. It is usually evidenced by (i) representation on the executive or supervisory bodies, (ii) participation in policy- making processes, or (iii) material transactions between the companies. At 31 December 2018, this method was used for two companies in which AFD directly or indirectly holds a stake of between 20% and 50% and over which significant influence may be proven: La Société immobilière de Nouvelle Calédonie (SIC) and Socredo. The consolidation method consists in measuring interest by using the company’s net position and calculating a share of its restated income according to the stake held in its share capital.

Minority interests:

P Non-controlling interests are immaterial with regard to the Group’s financial statements, either separately or cumulatively. P AFD Group has no contractual obligation to provide assistance to structured entities Fisea and Propasia above and beyond the standard obligations arising from its interest in these entities and has no intention of providing support in the future. P Interests in joint arrangements and associates have a negligible impact on the financial statements of AFD Group. 6.2.3.1.2 Consolidation principles and methods The following consolidation methods are used: Full consolidation This method applies to subsidiaries over which AFD has exclusive control. Such exclusive control is determined by the power to govern the financial and operating policies of the subsidiary. It is evidenced by (i) holding, directly or indirectly, most of the voting power of the subsidiary, (ii) holding the power to appoint or remove members of the executive, administrative or supervisory bodies of the subsidiary or (iii) having significant influence over the subsidiary under the statutes in force. This consolidation method consists of including all accounts, line item by line item, both on and off AFD’s balance sheet, while reporting the claims of “minority shareholders”. The same process is used for income statements. The following five companies are fully consolidated: P the Société de Promotion et de Participation pour la Coopération Économique (Proparco), created in 1977; Proparco’s status change from a credit institution to a finance company became effective on 25 May 2016 on receipt of notification from the ECB. At 31 December 2018, the company’s share capital totalled €693M and AFD’s stake was 64.95%. P the Société de Développement Régional Antilles-Guyane (Soderag), of which AFD took control in 1995 at the behest of the French State, was liquidated in 1998 after it lost its licence to operate as a credit institution;

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REGISTRATION DOCUMENT 2018