AFD - 2018 Registration document

AFD’S ANNUAL FINANCIALS STATEMENTS

Statutory auditors’ report on the annual financial statements

Audit procedures implemented in response to risks identified To assess the reasonableness of the provisions created, we:

P reviewed the process for evaluating the provisions and the internal control procedures governing them;

P reviewed the governance of the provisioning processes;

P verified the consistency of data from the risk management systems with the accounting data; P assessed the consistency of changes in provisions, receivables and the risk burden. If the provision was calculated on a collective basis, we put in place the following substantive procedures: P check to ensure the bases are exhaustive and the classification rules have been correctly applied;

P checking the consistency of the parameters applied in the calculation method and any updates in line with the methods validated;

P verification of the arithmetical accuracy of the calculations made;

P When the provision was determined on an individual basis, our work consisted of:

P testing the underlying assumptions and data used by Management to estimate impairments using credit file samples;

P verifying the correct implementation of the decisions made during Risk Committee meetings.

P satisfying ourselves that the downgrading rules for outstandings were not changed compared to the previous financial year. We also made sure that the downgrading rules for receivables were not changed compared to the previous year and were correctly applied throughout the financial year. Valuation of equity stakes Risks identified The Agence Française de Développement holds equity stakes as detailed in Notes 2.5, 3.5, 3.6, 3.8, 3.28 and 3.30 to the annual financial statements. These securities are recorded at their acquisition cost. These assets are impaired when the estimated value, assessed according to the company’s net position and its prospects (which are estimated based on economic and financial information gathered on the company, particularly on conditions in its country) or its stock market valuation, as the case may be, is lower than the acquisition cost. Due to the limited availability of market data, the valuation of some of these financial instruments requires the exercise of judgement by

management for the selection of the valuation method and parameters to be used. We considered the valuation of equity stakes to be a key point of the audit, given: P the significant impact from the choice of the valuation method on AFD’s results; P the sensitive nature of the parameters used for Management’s assumptions; P the significance of those amounts in the financial statements. Audit procedures implemented in response to risks identified In this context, our work consisted of:

P reviewing all securities with an objective indicator of impairment to ensure the accuracy and completeness of the recorded impairments;

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P verifying the accounting / management reconciliation for the equity portfolio;

P reconciling, on the basis of sampling, the valuation of securities with the external documentation that justified it. Special checks In accordance with professional standards applicable in France, we also carried out the special checks stipulated in the legal and regulatory requirements. INFORMATION GIVEN IN THEMANAGEMENT REPORT AND IN THE OTHER DOCUMENTS ADDRESSED TO THE BOARD OF DIRECTORSWITH RESPECT TO THE FINANCIAL POSITION AND THE ANNUAL FINANCIAL STATEMENTS We have no matters to report as to the fair presentation and the consistency with the annual financial statements of the information given in the management report of the Board of Directors and in the other documents addressed to the Board of Directors with respect to the financial position and the annual financial statements.

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REGISTRATION DOCUMENT 2018