AFD - 2019 Universal registration document

PRESENTATION OF AFD

AFD Group

With 30% of Socredo’s share capital, AFD is considered by the ACPR to be the reference banking shareholder, which implies an obligation of financial and technical support to its subsidiary. Beyond this consideration, Socredo also has targets and a strategy fully in line with those of AFD in the Pacific zone in terms of financial inclusion, sustainable development and regional integration. AFD is actively involved in Socredo’s governance with 3 out of 10 Ǿ Directors (with 5 Ǿ Directors from French Polynesia and 2 from the BRED). In 2019, AFD received dividends of €0.877M for the 2018 financial year. 1.5.3.5 Soderag The Regional Development Company of the Antilles-French Guiana (Soderag) is a regional development company in which AFD took control in 1995 at the State’s request. The extent of its losses and poor prospects led to the company’s liquidation in July Ǿ 1998. AFD took over its liabilities and is serving as the company’s receiver. Cash advances by AFD to this subsidiary amount to €106M and are fully written down in AFD’s financial statements. 1.5.3.6 Sogefom The French Overseas Guarantee Fund Management company (Sogefom) is a company that manages guarantee funds in the French Pacific Collectivities, providing partial guarantees for financing operations undertaken by credit institutions in this zone. In particular, its aim is to support small and very small businesses (SMEs and VSEs) in a range of economic sectors. AFD manages Sogefom within the framework of a regulated agreement. After experiencing a sharp rise in 2018 (+41%), the production of new guarantees saw a new 50% increase in value in 2019, which breaks down as follows: P in New Caledonia, following on from 2018, Sogefom’s new production increased by 70% in value and 50% in the number of guarantees granted in 2019. However, it only represents 38% of the amount recorded in French Polynesia. It amounted to €13.1M compared to €7.7M at end-2018. This year, as in 2018, it was able to offset the amortisation of the outstandings which were €32.9M at end-2019 compared to €28.5M at the end of 2018. P in French Polynesia , production has been rising since 2015. The 2019 figure was €34.3M versus €23.9M in 2018 (+44%) with 464 guarantees granted (404 in 2018). The outstandings recorded at end-2019 represent more than double those of New Caledonia, with 1,538 guarantees in the portfolio for €76.8M. P in Wallis-et-Futuna , the fund did not change with almost zero production this year (only one application approved in 2017 and 2018). The gross consolidated outstanding guarantees at 31 Ǿ December Ǿ 2019 (€109.9M) increased by 28% compared with 31 Ǿ December Ǿ 2018 (€85.9M).

Signatures at 31 Ǿ December Ǿ 2019, excluding Technical assistance, amounted to €37.5M (compared to €2.4M in 2018) in 4 investment funds and 4 companies directly. Payments amounted to €25.1M. Total outstandings (excluding Technical Assistance) as of 31 Ǿ December Ǿ 2019 amounted to €142M; investment funds represented 83% of outstandings and direct investment represented 17%. 2 Technical Assistance (TA) projects were authorised and signed in 2019 for €0.4M. €0.5 Ǿ million was disbursed for six technical assistance projects in 2019. 1.5.3.4 Banque Socredo The Socredo (50% Country, 35% AFD and 15% BRED), a French semi-public company ( société anonyme d’économie mixte ) (law of 1946) with share capital of €184.4M, approved as a bank since 1984, is a major player in the financing of the Polynesian economy. It notably ensures a presence across the region, unlike the competing commercial banks. Its activities extend to every sector of the economy and, more particularly, to several key segments such as housing, the marine sector and tourism. It is heavily involved in marine transport that serves distant archipelagos such as the Tuamotu Archipelago, the Marquesas and the Austral Islands, in air transport as a shareholder in carriers Air Tahiti and Air Tahiti Nui, as well as in the housing sector. For many years, Socredo has been the top banking institution in Papeete, ahead of Banque de Polynésie (Société Générale Group) and Banque de Tahiti (Groupe BPCE), with 44.7% of the lending market and nearly 42.4% of the deposit market at end- December Ǿ 2018. In addition to its banking activities, Socredo has five main subsidiaries throughwhich it extends its operating activities: OSB ( Océanienne de services bancaires , specialised in e-banking), ODI ( Océanienne d’industrie , specialised in cheque processing and electronic publishing), Ofina ( Océanienne de financement , which sends and receives cash for American Express cardholders in the French Pacific), OCSD ( Océanienne de conservation sécurisée de données , a secure data storage centre) and finally OCA ( Océanienne de centre d’appel , a call centre). The Bank also wholly owns OCI ( Océanienne de Capital Investissement ) which manages the equity stakes and development interests of the “venture capital” activity. In 2016, it created OFIMMO ( Océanienne de financement Immobilière ), a company which is wholly-owned by OCI, with a view to preparing projects as part of the OLS-P (Social-private housing body) initiative. At 31 Ǿ December Ǿ 2018, Socredo employed a workforce of 467 Ǿ people. Its balance sheet total amounted to €2.36bn, mainly comprising customer receivables (€1.72bn). The bank generated net banking income (NBI) of €81.1M and net income of €14.8M, compared with €72.9M and €13.5M respectively in 2017. At 30 Ǿ June Ǿ 2019, outstanding loans at the end of the period were positive: +€28M compared to end-2018. Net banking income was €41M, up 2% compared to the first half of 2018. At its Board of Directors’ meeting of March Ǿ 2019, the Socredo decided to implement a new strategy to reinforce its role as a development bank by including sustainable development, climate and social aspects in its Polynesian and regional projects.

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UNIVERSAL REGISTRATION DOCUMENT 2019