AFD - 2019 Universal registration document

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS

Notes to the consolidated financial statements

6.2.2 Accounting standards applied to Agence Française de Développement The financial statements given in this document include the summary financial statements and the notes to the financial statements. They are presented in accordance with French Accounting Standards Authority (ANC) Recommendation No. Ǿ 2017-02 of 2 Ǿ June Ǿ 2017 concerning the format of the summary documents of companies subject to banking and finance regulations under international accounting standards. The consolidated financial statements of the AFD Group at 31 Ǿ December Ǿ 2019 were prepared in accordance with

International Financial Reporting Standards (IFRS) as adopted by the European Union. The accounting standards used in the preparation of AFD’s financial statements at 31 Ǿ December Ǿ 2019 are described in Note Ǿ 6.2.3.2. These consolidated financial statements are presented in thousands of euros. The standards and interpretations used in the financial statements at 31 Ǿ December Ǿ 2019 were supplemented by the provisions of IFRS as adopted by the European Union and with mandatory application for the first time during this period. They relate to:

Date of application: financial years starting b from

Dates of publication by b the European Union

Standards, amendments or interpretations

IFRS 16 Leases

October 2017

1 January 2019

Replacement of IAS 17 – Leases IFRIC 23 Uncertainty over Income Tax Treatments

June 2017

1 January 2019

The interpretation clarifies how to account for uncertainties when calculating income taxes under IAS 12 Amendements to IAS 39 - IFRS 9 and IFRS 7

September 2019

1 January 2020

Amendments changing the requirements for hedge accounting Unless otherwise stated, when application of the standards and interpretations adopted by the European Union is optional for a period, AFD does not take up the option. IFRS b 16 “Leases”

The Group measured contracts meeting the “Lease” definition under the meaning of the standard together. The Group has opted for the two accounting exemptions provided by the standard for the following contracts: P short-term leases, i.e. contracts with a duration less than or equal to 12 Ǿ months; P contracts related to low value assets. The discount rate used tomeasure the lease debt corresponds to the Group’s refinancing rate, for each residual contract duration. This rate corresponds to the interest rate that the lessee would be charged to borrow the funds required to purchase a similar asset in respect of the right to use, over a similar duration with a similar guarantee and in a similar economic context. The lease duration corresponds to the non-cancellable period of the lease and includes: P optional renewal periods (when the lessee is reasonably certain to exercise this renewal option); P periods after the possible cancellation date (when the lessee is reasonably certain not to exercise this cancellation option).

The Group implemented IFRS Ǿ 16 Leases which replaces IAS Ǿ 17 and all related interpretations (IFRIC Ǿ 4, SIC Ǿ 15, Operating leases – Incentives and SIC Ǿ 27, Evaluating the Substance of Transactions involving the Legal Form of a Lease). It is applicable to financial years starting from 1 Ǿ January Ǿ 2019. The main change introduced by IFRS Ǿ 16 relates to lessee accounting. IFRS Ǿ 16will require lessees to adopt amodel inwhich all leases are reported in the balance sheet; all commitments for the full duration of the contract must be reported on the liabilities side and a usage right to be amortised must be recorded on the assets side. In 2017, the AFD Group began a survey of its real estate assets and IT hardware contracts, which constitute the majority of the Group’s leases. The Group finalised the choice of structuring options related to the standard’s interpretation, collected the required information to allow the data on all of the Group’s leases to be processed and completed the calculation of impacts based on the financial statements to 31 Ǿ December Ǿ 2018 during Q1 2019.

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UNIVERSAL REGISTRATION DOCUMENT 2019