AFD - 2018 Registration document

FINANCIAL INFORMATION

Economic presentation of the consolidated financial statements

ASSETS The change in total balance sheet assets is mainly due to the increased net outstandings (+8%), equity investments (+17%), investment portfolio (+8%) and level of cash (+10%) of AFD Group. Net loans outstanding of AFD Group totalled €32,798M at 31 December 2018, i.e. 77% of the consolidated balance sheet, an increase of €2,367M (+8%) compared with the previous year. Gross outstandings stood at €33,402M, up €2,255M or (+7%) compared with 2017.

The change in gross consolidated outstandings was mainly due to: P the increase in loans at the Group’s risk in the foreign country zone (up €2,307M); P an increase in outstanding loans in the French Overseas Departments and Collectivities (+€243M); partially offset by: P the decline in loans at the risk of the French State (-€280M). The initial application of IFRS 9 by AFD Group on 1 January 2018 resulted in the reclassification to financial assets at fair value through profit or loss of a loan portfolio whose contractual flows are not solely payments of principal and interest (SPPI). The adjustment to fair value of this portfolio had an impact on equity of -€18.4M. At 31 December 2018, the adjustment to fair value of this portfolio amounted to (-€46M).

2017

2018

Amount 32,746 27,187 16,254 10,932

%

Amount 30,212 24,880 14,598 10,282

%

In millions of euros

- Loans at AFD Group’s risk Of which Foreign countries

98% 81% 49% 33% 16%

97% 80% 47% 33% 17%

Sovereign

Non-sovereign

Of which French Overseas Collectivities

5,459

5,216

Of which other loan outstandings

101 656 630

0% 2% 2% 0%

115 936 882

0% 3% 3% 0%

- Loans at the State’s risk

Loans guaranteed by the State Loans granted by the State

5

25

54

GROSS CONSOLIDATED OUTSTANDINGS

33,402

31,147

Outstanding loans at the Group’s risk (€32,746M, of which €27,187M for foreign countries and €5,459M for French Overseas Departments and Collectivities) resulted in impairments totalling €663M on non-sovereign and French Overseas Departments and Collectivities loans, or a coverage rate of 4%. Performing sovereign loans were covered for the amount of €826M at 31 December 2018, representing a coverage rate of 5.1%. ❙ Summary of outstandings and impairments

Outstandings

Impairments

In millions of euros Foreign countries Sovereign of which doubtful

16,254

826

104

85

Non-sovereign

10,932

508 320

of which doubtful

512

French Overseas Departments and Collectivities Non-sovereign

5,459

70 70

of which doubtful

285 101

Other outstanding loans

TOTAL

32,746

1,405

of which doubtful

901

475

93

REGISTRATION DOCUMENT 2018