AFD // 2021 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

on a rebuttable presumption that the status of default is applied after no more than 90 ɸ days of non-payment. This definition takes into account the EBA guidelines of 28 ɸ September 2016, in particular with regard to applicable thresholds in the event of non-payment, and probationary periods. Sovereign loans used to be downgraded to doubtful after 18 ɸ months of arrears. Following the application of this new definition, these loans are considered to be non-performing loans when they carry a proven credit risk. At 31 ɸ December 2021, doubtful sovereign outstandings amounted to €610M. The doubtful rate of the sovereign loan portfolio rose from 0.01% at the end of 2020 to 2.7% at the end of 2021. 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. ɸ 2017-02 of 2 ɸ June 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 ɸ December 2021 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 ɸ December 2021 are described in Section ɸ 3.2 These consolidated financial statements are presented in thousands of euros. The standards and interpretations used in the financial statements at 31 ɸ December 2021 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:

The Board of Directors approved the 2020 financial statements on 8 ɸ April 2021. The French Minister of the Economy and Finance set the 2020 dividend to be paid to the State. It amounted to €21.1M, i.e. 20% of AFD’s corporate income, and was paid out after publication in the Official Journal. The balance of income after payment of the dividend, i.e. €84.4M, was allocated to reserves. 6.2.1.4 Increase in AFD’s capital allocation by the French State A new capital allocation was made to AFD by the French State in the amount of €1,420M to strengthen the Agency’s equity capital. AFD’s initial allocation, which was €2,808M, stood at €4,228M at the end of this period. This allocation increase was carried out by converting the State’s RCS (resources with special conditions) debt into AFD’s books, in accordance with the agreement signed on 18 ɸ June 2021 between the French State and AFD. This agreement defines the terms and conditions relating to (i) ɸ AFD’s capital allocation from the French State in the amount of €1,420M, and (ii) ɸ the early repayment by AFD to the French State of payments due from 1 ɸ June 2021 on several loans issued between 1 ɸ January 2018 and 31 ɸ May 2021 for a total amount of €920M. 6.2.1.5 Fisea capital increase On 9 ɸ February 2021, Fisea carried out a €50M capital increase by creating ordinary shares fully subscribed by AFD and fully paid up over the period. Fisea’s capital was thus increased to €277M compared to €227M previously. 6.2.1.6 Application of the new definition of default to the scope of sovereign loans On 1 ɸ January 2021, AFDGroup adopted a newdefinition of default to downgrade financial assets in stage ɸ 3. This new definition is aligned with that of the Basel framework and is notably based

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Dates of publication by the European Union

Date of application: financial years starting from

Standards, amendments or interpretations

Phase ɸ 2 amendments to IAS ɸ 39 – IFRS ɸ 9 – IFRS ɸ 7 – IFRS ɸ 16 – IFRS ɸ 4 following changes in reference rates Amendments to IFRS ɸ 16 “Leases” – Covid-19-Related Rent Concessions beyond 30 ɸ June 2021

August ɸ 2020

1 ɸ January 2021

August ɸ 2021

1 ɸ January 2021

In preparing the financial statements for the year ended 31 ɸ December 2021, the Group took into consideration: P the IFRIC’s final decision of 20 ɸ April 2021, published in May ɸ 2021, which clarifies the allocation of post-employment benefits to periods of service for defined benefit plans in accordance with IAS ɸ 19. This decision has no impact on the AFD Group’s financial statements (uncapped retirement bonuses);

P the IFRIC’s final decision, published on 27 ɸ April 2021, on the recognition of configuration/adaptation costs under a SaaS contract, in accordance with IAS ɸ 38. This decision has no impact on the Group’s financial statements (these contracts continue to be qualified as continuous services, so the conditions for controlling a fixed asset are not met within the meaning of IFRS ɸ 16 or IAS ɸ 38). Unless otherwise stated, when application of the standards and interpretations adopted by the European Union is optional for a period, the AFD Group does not take up the option.

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2021 UNIVERSAL REGISTRATION DOCUMENT