AFD_REGISTRATION_DOCUMENT_2017

5

FINANCIAL INFORMATION

ECONOMIC Presentation of the consolidated financial statements

The contribution of the Group’s subsidiaries to its gross operating income is as follows:

GOI AFD

2017

2016

Change

287

283 108 -11

4

Proparco

90

-18

Fisea

-10

1

Soderag Sogefom Propasia

0 0 0

1 0 0

-1

0 0

GROUP TOTAL

367

381

-13

Cost of risk The cost of risk changed significantly in comparison with the previous financial year. It represented an expense of €12M compared with €98M in 2016, and breaks down as follows:

Cost of risk

2017

2016

Change

Collective provisions and impairment

52

-43 -52

95 -1 -8 86

Individual impairments of non-sovereign loans

-53 -11 -12

Losses on principal of bad loans

-3

TOTAL COST OF RISK

-98

The reduction in the cost of risk over the financial year is essentially the result of refining the methodology used to calculate collective provisions for the sub-participation loan portfolio. Operating income The slight reduction in gross operating income (-€13M) and the positive impact of the reduction in the cost of risk led to increased operating income of €355M, up €72M compared with 2016. Ordinary income before tax Following the disposal of stakes held in the SIDOMs during the 2017bfinancial year, the gains on other assets item decreased

by €13M including the capital loss of €13M recorded for the disposal of Simar, an equity-accounted company in AFD Group’s consolidated financial statements. The contribution from equity-accounted (1) companies (€5M) is also down compared with 2016 (€8M) owing to the Simar disposal. Ordinary income before tax was consequently €347M in 2017 (compared with €292M in 2016). Net income Taking account of corporate tax (€15M) and the stakes of minority shareholders in Proparco, Propasia and Sogefom (€20M), net profit in 2017btotalled €313M.

The contribution of the Group’s companies to its consolidated income is outlined below:

2017

Minority interests

Group share

Total

In millions of euros

AFD

282

b

282

Fully consolidated companies

46 56 -1

-20 -20

26 37

Proparco Sogefom Soderag Propasia

0 0 0 0

0 0 0 5 5 0 0

0 0

Fisea

-10

-10

Equity-accounted companies

5 5 0 0

b b b b

Socredo

SIC

Simar

GROUP TOTAL

332

-20

313

b

(1) Corresponds to the share of earnings from the equity-accounted companies in the Group’s consolidated financial statements.

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REGISTRATION DOCUMENT 2017

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