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

OTHER RECLASSIFICATIONS A zero-interest loan was recognised using the fair value option under IAS 39. After analysing the characteristics of the contractual flows and taking into account the “hold to collect” business model used for “loans and receivables” portfolios, this loan was reclassified at amortised cost for €25M. Hedging derivatives for which the hedged items have been reclassified under “financial assets at fair value through profit or loss” have been excluded from the scope of transactions eligible for hedge accounting and reclassified to derivative instruments Reclassification adjustments are limited and mainly relate to the adjustment to fair value of loans recognised at fair value through profit or loss, of which €13M relates to the de-designation of derivative instruments recognised in hedge accounting and €3M to the fair value adjustment of loans. VALUE ADJUSTMENTS RELATING TO IMPAIRMENTS AND PROVISIONS FOR CREDIT RISK The application of the second part of IFRS 9 (“impairment”) on 1 January 2018 led to the downward adjustment of impairments and provisions for credit risk on loans recognised at amortised cost for €134M. at fair value through profit or loss for €104M. RECLASSIFICATION ADJUSTMENTS

Held-to-maturity financial assets This category included fixed income securities with a fixed maturity, which AFD had the intention and the ability to hold to maturity. These are debt securities whose contractual flows are SPPI in nature and which are held to collect the contractual flows. They have therefore been classified as debt securities at amortised cost. RECLASSIFICATION OF OUTSTANDING LOANS AND NON-SPPI RECEIVABLES Most of the loans and receivables due from credit institutions and customers are eligible for classification at amortised cost under IFRS 9, except for one loan portfolio whose contractual flows are not SPPI. These are loans whose early repayment flows do not only reflect the effect of changes in reference interest rates. The outstandings have therefore been reclassified to financial assets at fair value through profit or loss for €1,028M and correspond to 3.3% of the Group’s outstanding loans at 1 January 2018.

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REGISTRATION DOCUMENT 2018