AFD - 2018 Registration document

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RISK MANAGEMENT

Basel III Pillar 3

4.2.4 Capital 4.2.4.1 Capital structure AFD Group’s capital at 31 December 2018 was €7,179M, up €840M from €6,339M at the end of 2017. CET1 capital stood at €6,131M, compared with €5,619M at the end of 2017. Total Tier 1 increased from €6,339M to €6,971M. ❙ Capital structure of AFD Group at 31 December 2018

In millions of euros CET1 capital before deductions

6,131

CET1 deductions

0

CET1 capital after deductions T1 capital before deductions

6,131 6,971

T1 deductions

0

T1 capital after deductions T2 capital before deductions

6,971

208

T2 deductions

0

T2 capital after deductions

208

TOTAL CAPITAL

7,179

direct, unconditional, lowest rank subordinated commitments for an indefinite term without an AFD guarantee. Save for the occurrence of a regulatory event, as provided for in the agreement with the State (point of non viability, i.e. non- compliance with the minimum CET1 ratio as provided by law at a specific time), the securities will pay an annual interest of 0.25%; P €208M of Tier 2 capital (resources with special conditions).

The breakdown of “regulatory” capital at 31 December 2018 was as follows: P €6,131M category 1 base capital, comprising hard, non- refundable capital (mainly provisions and reserves); P €840M additional category 1 capital in the form of undated subordinated bonds subscribed by the French State. The securities commitments made by AFD (which are obligatory under French law), in terms of principle and interest, are

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REGISTRATION DOCUMENT 2018