AFD - 2019 Universal registration document

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS 6 Notes to the consolidated financial statements

Expatriate employees healthcare expenses Retirement Retirement

Total defined benefit plans

Retiree health insurance

Retirement lump sum

Service award Total global

In thousands of euros

Amounts recognisedon the income statement at 31/12/2019 Cost of services rendered over the period 330

168

4,484 1,838 1,862

1,438

6,419 1,838 2,657

152

6,571 1,838 2,681

Cost of past services

0

0

0

0

Financial cost for the period

187

260

348

23

Recognised actuarial gains (losses) Expected return on retirement plan assets

0 0

0

0

0

0

117

117 -323

-323

-323

Cost of services rendered Impact of reductions/liquidations Expenses booked

517

104

8,184

1,785

10,591

293

10,884

Reconciliationof opening and closingnet liability Liability at 1 January

9,036

-9,211

88,634

17,098

105,557 10,591

1,102

106,660 10,884

Expenses booked Contributions paid

517

104

8,184

1,785

293

0 0

0

0

0

0

Restatements and transfers

-11

-46

-20

-78

-1

-79

Employer contributions

-66

-1,933 24,442

-1,359 2,702 20,207

-3,357 29,720

-115

-3,472 29,720

Items not to be recycled in profit or loss

2,309

267

0

Net liabilities at 31/12/2019

11,797

-8,851

119,281 30,647

142,434 36,876

1,279

143,713 37,053

Change in net liabilities

2,761

360

3,109

177

6.2.5 Risk Information The role of the Executive Risk Department (DXR) is to analyse, inform and advise executive officers (Senior Management) on the risks to which the Group companies are exposed. It is involved in the implementation of risk policies and procedures and systems to measure, control, analyse and monitor these risks. It ensures that the Group’s activities and the inherent risks, are in line with the risk management objectives, company policy P the Second Opinion Unit, which provides a second opinion on projects which are being appraised, in accordance with Article Ǿ 112 of the Order of 3 Ǿ November Ǿ 2014; P the Compliance Department (DCO); P the Operational Risk and Permanent Control Department (ROC); P the Group Risk Management Department (DRG). 6.2.5.1 Credit risk Risk measurement and monitoring The AFD Group’s credit risk monitoring system is the responsibility of the Group Risk Management Department (DRG) within the Executive Risk Department. and regulatory requirements. This department combines:

Operating as part of the DRG, the Credit Risk Evaluation Division (DRC) is responsible for: P validating the credit risk due diligence carried out by the Executive Operations Department, rating non-sovereign counterparties, determining the reporting groups and assessing the financial structure of the operations during the project appraisal cycle; P implementing the follow-up right beyond the bodies, when this right is requested by the Second Opinion unit, and reviewing the updated credit risk before agreements are signed and in the event of requests for waivers and riders; P yearly reviews of AFD’s non-sovereign credit risks, monitoring of borrowers on the watchlist and appraising individual impairments; P developing tools, methods and training materials to evaluate credit risks, mainly for use by the operating departments. The Risk Monitoring Division (DSR): P monitors credit risk, mainly by ensuring the Risk Measurement Forms are updated each half-year and keeping track of operational and regulatory limits; P evaluates the collective provisions, monitors the cost of risk and ensures the application of the recovery and penalty procedures; P monitors the risk of the companies of the AFD Group; P compiles the Group’s risk projections (portfolio, risk level and stress-tests);

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UNIVERSAL REGISTRATION DOCUMENT 2019

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