AFD - 2019 Universal registration document

FINANCIAL INFORMATION 5

Economic presentation of the consolidated financial statements

COST OF RISK The cost of risk changed significantly in comparison with the previous financial year. It represented an expense of €150M compared with €67M in 2018 and breaks down as follows:

2019

2018

Change

Cost of risk

AFD

-117

-62

-55 -26

Proparco Sogefom

-31

-6

-1

1

-2

GROUP TOTAL

-150

-67

-83

PRE-TAX INCOME The share of equity-accounted companies (1) (-€1.6M) was down compared with the previous year, mainly as a result of the decrease in SIC’s income. Pre-tax income was consequently €200M in 2019 (compared with €151M in 2018). NET INCOME Taking into account corporate tax (€18M) and the interests of minority shareholders in Proparco, Propasia and Sogefom (€9.7M), net income, Group share, totalled €172M.

The increase in cost of risk during the year is mainly due to the €25M increase in individual provisions for non-performing counterparties (stage Ǿ 3), several of which became non- performing, on the one hand, and the €57M increase in collective provisions for performing and sensitive counterparties (stage Ǿ 1

and stage Ǿ 2), on the other. OPERATING INCOME

The increase in gross operating income (+€138M) was partly offset by the negative impact of the increase in cost of risk. Operating income came to €202M, an increase of €56M compared with 2018.

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

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UNIVERSAL REGISTRATION DOCUMENT 2019

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