AFD - 2019 Universal registration document

First page Table of contents Next page Last page

A word from the CEO	4
Our key figures	5
Our strategy 2018–2022	7
4 Main operating regions	8
Methodology and glossary	10
1. Presentation of AFD	11
1.1 General information	12
1.1.1 Legal status	12
1.1.2 General information about AFD’s share capital	12
1.1.3 Current breakdown of share capital and voting rights	13
1.1.4 AFD’s stock issues	13
1.1.5 Dividends	13
1.2 AFD Group’s 2018-2022 strategy	13
1.2.1 AFD Group’s missions and commitments	13
1.2.2 AFD Group’s action	13
1.3 AFD operations	14
1.3.1 General comments	14
1.3.2 Activities of AFD on its own behalf	14
1.3.3 Other AFD activities	15
1.3.4 AFD mandate-specifi c activities	16
1.3.5 AFD’s operating scope (see Appendix I)	16
1.3.6 Information about any restrictions on the use of capital that have materially affected, or could materially affect, directly or indirectly, the issuer’s operations.	16
1.4 Financing activities on its own behalf	17
1.5 AFD Group	19
1.5.1 Consolidation scope	19
1.5.2 Information about subsidiaries	19
1.5.3 Presentation of subsidiaries	20
1.6 Activities of the Agence Fran.aise de Développement Group in 2019	22
1.6.1 International context	22
1.6.2 Information about offi ces and activities at 31 December 2019	25
1.6.3 AFD Group activities	25
1.6.4 AFD’s activities in foreign countries	28
1.6.5 AFD activities in French Overseas Departments and Collectivities	32
1.6.6 Intellectual production	34
1.6.7 Proparco’s activity	35
2. Statement of Non-Financial Performance	37
2.1 The business model	39
2.2 Identification of the main non-financial issues and risks	39
2.3 Managing the risks and impacts of our action	42
2.3.1 AFD’s management of environmental and social impacts, and the procedure for managing complaints	42
2.3.2 PROPARCO’s management of environmental and social impacts, and the procedure for managing complaints	43
2.3.3 Human rights due diligence	45
2.4 The Group’s contribution to sustainable development	46
2.4.1 Impact of AFD’s activity	46
2.4.2 Impact of Proparco’s activity	48
2.4.3 Impact of the Group’s activity on climate change	49
2.4.4 Impacts related to the Group’s activity in reinforcing social link	51
2.5 Transparency and dialogue with stakeholders	52
2.5.1 Transparency of funds granted	52
2.5.2 Dialogue with stakeholders	52
2.6 Coordination with development actors: priority to partnership	53
2.6.1 Partnerships with civil society organisations	53
2.6.2 Partnerships with European and international players	53
2.6.3 Support for project management and the building of capacities	54
2.7 Fair practices	54
2.7.1 Initiatives for preventing corruption, fraud, money laundering, terrorist financing and tax evasion	54
2.7.2 Checks made during a project’s life cycle	55
2.7.3 Checks carried out as part of the foreign public procurement process	55
2.7.4 Counterparty commitments	55
2.7.5 Information reporting systems	55
2.7.6 Training of Group employees	55
2.7.7 Initiatives undertaken to prevent tax evasion	56
2.8 A meaningful work environment	57
2.8.1 The ethics system	57
2.8.2 Skills development, employability and training	57
2.8.3 Employee dialogue and social relations	58
2.8.4 Quality of employee working conditions and safety	59
2.9 Report from one of the statutory auditors , as a designated independent third party, on the voluntary consolidated statement of non-financial performance included in the management report	61
3. Corporate governance	65
3.1 Report on corporate governance	66
3.1.1 Separation of the functions of Chairman and Chief Executive Officer	66
3.1.2 Executive Committee	67
3.1.3 The Board of Directors	67
3.1.4 Compensation and benefi ts to the executive offi ces	73
3.1.5 Compensation and social benefits of corporate officers	73
3.1.6 Other information	73
3.2 Compensation policy and practices	75
3.2.1 Compensation policy governance	75
3.2.2 Principal compensation policy characteristics	75
3.2.3 Information about compensation for executive officers and individuals whose professional activities have a significant impact on the company’s risk profile	77
4. Risk management	79
4.1 Risk factors	80
4.1.1 Banking and financial risks	80
4.1.2 Non-financial risks	83
4.1.3 Health and Safety Risks	85
4.2 Basel III Pillar 3	86
4.2.1 General principles	86
4.2.2 Scope of application	86
4.2.3 Risk Capital	86
4.2.4 Risk exposure and evaluation procedures	89
4.3 Risk management	96
4.3.1 Internal control and risk monitoring	96
4.3.2 Internal control procedures and organisation of audit trail for accounting and financial information (Article L.225-100-1-5)	98
4.3.3 Credit risk	99
4.3.4 Comprehensive interest rate, foreign exchange, liquidity and market risks	99
4.3.5 Major risk ratio	100
5. Financial information	103
5.1 Recent changes and future prospects	104
5.1.1 Recent changes	104
5.1.2 Future prospects	104
5.1.3 Borrowings	104
5.1.4 Information about trends	104
5.1.5 Signifi cant change in the issuer’s financial position	104
5.2 Post-closing events	105
5.3 Economic presentation of the consolidated financial statements	105
5.3.1 Consolidated balance sheet (in millions of euros)	105
5.3.2 Consolidated income statement	108
6. Consolidated financial statements prepared in accordance with IFRS accounting standards adopted by the European Union	111
6.1 Overview	112
6.1.1 Balance sheet at 31 December 2019	112
6.1.2 Income statement at 31 December 2019	114
6.1.3 Net income and gains and losses recognised directly as equity at 31 December 2019	115
6.1.4 Statement of changes in shareholders’ equity from 1 January 2018 to 31 December 2019	116
6.1.5 Cash flow statement at 31 December 2019	117
6.2 Notes to the consolidated financial statements	118
6.2.1 Significant events at 31 December 2019	118
6.2.2 Accounting standards applied to Agence Française de Développement	119
6.2.3 Principles for the preparation of the consolidated financial statements of the AFD Group at 31 December 2019	120
6.2.4 Notes to the financial statements at 31 December 2019	132
6.2.5 Risk Information	150
6.2.6 Additional information	162
6.3 Auditors’ report on the consolidated financial statements	164
6.4 Statutory auditors’ special report on regulated agreements	169
6.5 Fees paid to the statutory auditors and members of their network by the Group	174
7. AFD’s annual financial statements	175
7.1 Highlights of the financial year	179
7.1.1 Growth of the balance sheet	179
7.1.2 Financing of the Group’s activity	179
7.1.3 Appropriation of 2018 earnings	179
7.1.4 Proparco shareholder structure	179
7.1.5 Fisea capital increase	179
7.2 Accounting principles and assessment methods	180
7.2.1 General comments	180
7.2.2 Conversion of foreign currencies	180
7.2.3 Loans to credit institutions and customers	180
7.2.4 Short-term and long-term investments	181
7.2.5 Shares in related businesses, equity stakes and long-term investments	181
7.2.6 Bonded debt	182
7.2.7 Subventions	182
7.2.8 Fixed assets	182
7.2.9 Forward financial instruments	182
7.2.10 Provisions	183
7.2.11 Reserve for General Banking Risk (RGBR)	187
7.2.12 Subordinated debt	187
7.2.13 Financing commitments	187
7.2.14 Guarantee commitments	187
7.2.15 Disclosure on non-cooperating States and territories	187
7.2.16 Other information related to consolidation	187
7.2.17 Post-closing events	187
7.3 Notes to the financial statements at 31 December 2019	188
7.4 AFD’s financial results over the last five financial years	199
7.5 Statutory auditors’ report on the financial statements	200
8. Person responsible for the Registration Document and the audit of the financial statements	205
8.1 Name and position	206
8.2 Certification of the person responsible	206
8.3 Name, Address and Qualification of the Financial Statements’ statutory auditors	206
8.4 Information Policy	206
9. Additional information	207
9.1 Cross-reference table of the management report	208
9.2 Incorporated by reference	209
9.3 Cross-reference table of the universal registration document	209
9.3.1 Headings of appendix II of regulation 2017/1129 (“Prospectus 3”)	209
9.3.2 Cross-reference table between Appendices 1 and 2 of the delegated regulation 2019/980 and the Universal Registration Document	210
9.4 Cross-reference table of the CRR articles and the Pillar III report tables	213
9.5 Appendix 1 – AFD’s operating region	216
9.6 Appendix 2 – AFD simplified balance sheet based on French GAAP	219
9.7 Appendix 3 – AFD simplified income statement based on French GAAP	220
9.8 Appendix 4 – Key ratios and indicators	221
9.9 Appendix 5 – Results of operating activities for the last 5 reporting years (parent company basis)	221
9.10 Appendix 6 – AFD approvals	222
9.11 Appendix 7 – Summary table of AFD’s and Proparco’s loans in foreign countries	223
9.12 Appendix 8 – Table of Proparco’s approvals	226
9.12.1 Appendix 8.1: part 1	226
9.12.2 Appendix 8.2: part 2	227
9.13 Appendix 9 – Note on the Statement of Non-Financial Performance methodology	229
9.14 Appendix 10 – Statement of Non-Financial Performance appendices	232
9.14.1 Statement of Non-Financial Performance Appendix 1: Materiality matrix	232
9.14.2 Statement of Non-Financial Performance Appendix 2: HR indicators and information (Act.2010-788 aka Loi Grenelle II)	233
9.14.3 Statement of Non-Financial Performance Appendix 3: Environmental indicators and information (Act. 2010-788 aka Loi Grenelle II)	236

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