AFD_REGISTRATION_DOCUMENT_2017

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS 6 Notes to the consolidated financial statements

P Minority interests: Non-controlling interests are immaterial with regard to the Group’s financial statements, either separately or cumulatively.

31/12/2017 IFRS

31/12/2016 IFRS

% 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%

19,750

286,109

35.05%

19,843

285,606

Other subsidiaries

b

-196

8,493

b

35

8,728

TOTAL MINORITY SHARE TOTAL GROUP SHARE

19,554 312,805

294,602

b b

19,878 246,200

294,334

5,798,892

5,521,847

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.

P Fisea (Investment and Support Fund for Businesses in Africa) was created in Aprilb2009. This simplified joint-stock company with registered capital of €190.0M 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 Octoberb2008, 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 31bDecember 2017, 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 31bDecember 2017, 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 of 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. Comments on other companies AFD also has holdings in a number of companies over whose management it has no significant influence. These companies are not consolidated, either fully or using the equity method. They are recorded under “Available-for-sale financial assets”. 6.2.3.1.3 Restatement of transactions Account balances on the balance sheet, transactions and income and expenses resulting from intragroup transactions are eliminated when the consolidated financial statements are drawn up. Gains arising from transactions with equity-accounted entities are eliminated by offsetting equity method investments to the extent of the Group’s interest in the entity. Losses are eliminated in the same manner but only when they do not represent an impairment loss.

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 25bMay 2016bon receipt of notification from the ECB. At 31bDecember 2017, 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 1995bat the behest of the French State, was liquidated in 1998bafter it lost its licence to operate as a credit institution. At 31bDecember 2017, 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), whose shares AFD bought back from the French Overseas reserve banks (IEOM) on 12bAugust 2003bat the behest of the Ministry of the Economy, Finance and Industry and the Ministry of the French Overseas Departments and Collectivities. At 31bDecember 2017, the company’s share capital amounted to €1.1M. It is 58.69% owned by AFD;

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REGISTRATION DOCUMENT 2017

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