AFD_REGISTRATION_DOCUMENT_2017

PRESENTATION OF AFD AFD Group

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After experiencing a sharp increase in 2015 (up 61.8%), followed by a 10.3% fall in 2016, new production recorded a slight increase of 2.1% in value in 2017, which is distributed disparately between the offices: P in New Caledonia, guarantees granted in 2017bby Sogefom continued to fall, following the pattern of the 17.3% drop recorded in 2016. Compared to 2016, new production therefore fell by 28.5% in value and 21.4% in number of approvals. The slowdown in production was recorded over all guaranteed products. Note that in 2017, five guarantees were granted in relation to the Bpifrance development product financing put in place at the end of 2016bwith a total amount approved of €78K; P in French Polynesia, over the same period, approvals grew in value by 16.6% with the number of applications remaining unchanged compared to 2016. As a result of this increase, global Sogefom production was maintained at the same level as 2016. The average amount approved for the standard activity grew from €48K in 2016bto €57K in 2017. However, over the same period, the average amount guaranteed for the short-term activity fell to €23K from €26K in 2016; P in Wallis and Futuna, production remained low with only one application approved in 2017bfor a value of €48K (three in 2016bfor €75K). The gross outstanding guarantees at 31bDecember 2017 (€74.9M) increased by 7.1% in comparison with 31bDecember 2016 (€69.9M). 1.4.3.7 Property companies In connection with its operations in French Overseas Departments and Collectivities, AFD was a shareholder, alongside the Government and local authorities, of six property companies, the SIDOMs. At the end of 2015, the Government announced its intention to reorganise the shareholding of the SIDOMs by transferring its equity interests to a public operator specialising in social housing, the Société Nationale Immobilière, a wholly-owned subsidiary of the Caisse des Dépôts et Consignations. It asked AFD to sell its own shares at the same time as the transfer. Following negotiations between the State and the SNI, an agreement was reached for a sale in two stages: first the purchase by SNI of 34% of the companies’ capital, including all AFD’s shares in 2017, then an option to purchase the balance of the Government’s shares over a five year period. The sale took place on 19bDecember 2017. AFD no longer holds any equity stakes in its own name in the SIDOMs. The shares recorded in its balance sheet are held on behalf of the Government and will be sold within the next five years. Thus, as of the end of 2017, AFD’s equity stake in its own name in the capital of Société Immobilière de Nouvelle-Calédonie (SIC) was reduced to 50%. This company was not included in the transaction as the Government did not have any equity interest in this property company.

In addition to its banking activities, Banque Socredo has five main subsidiaries through which it extends its operating activities: OSB (Océanienne de services bancaires, specialised in e-banking), ODI (Océanienne d’industrie, specialised in cheque processing and electronic publishing), Ofina (Océanienne de financement, which sends and receives cash for American Express cardholders in the French Pacific), OCSD (Océanienne de conservation sécurisée de données, a secure data storage centre) and finally OCA (Océanienne de centre d’appel, a call centre). The Bank also wholly owns OCI (Océanienne de Capital Investissement) which manages the equity stakes and development interests of the “venture capital” activity. In 2016, it created OFIMMO (Océanienne de financement Immobilière), a company which is wholly-owned by OCI, with a view to preparing projects as part of the OLS-P (Social-private housing body) initiative. At 31bDecember 2017 (1) , Banque Socredo employed a workforce of 466bpeople. Its balance sheet total amounted to €2.23bn, mainly comprising customer receivables (€1.68bn). The bank generated net banking income (NBI) of €72.9M and net income of €13.5M, compared with €77.9M and €13.7M respectively in 2016. In 2017, AFD received dividends of €1.6M for the 2016bfinancial year. 1.4.3.5 Soderag The Regional Development company of the West Indies-French Guiana (Soderag) is a regional development company. In 1995, at the request of its governing bodies, AFD took control of the firm. The extent of its losses and poor prospects led to Soderag’s liquidation in July 1998. AFD took over its liabilities and is serving as the company’s receiver. Cash advances by AFD to this subsidiary amount to €106M and are fully written down in AFD’s financial statements. 1.4.3.6. Sogefom The French Overseas Guarantee Fund Management company (Sogefom) is a company that manages guarantee funds in the French Pacific Collectivities, providing partial guarantees for financing operations undertaken by credit institutions in this zone. In particular, its aim is to support craftspeople and very small, small and medium-size businesses (VSBs and SMEs) in various economic sectors. AFD manages Sogefom within the framework of a regulated agreement.

(1) The figures at 31bDecember 2017bare provisional (they have not been reviewed by the statutory auditors and the accounts have not been approved).

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REGISTRATION DOCUMENT 2017

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