AFD // 2021 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS 6 Notes to the consolidated financial statements

Expatriate employees healthcare expenses Retirement

Total defined benefit plans

Retiree health insurance

Retirement lump sum

Service award Grand total

In thousands of euros

Amounts recognised on the income statement at 31/12/2021 Cost of services rendered over the period

513

111

9,068

2,208

11,900

202

12,102

Cost of past services

-

-

0

-

0

-

0

Financial cost for the period

98

0

998

163

1,259

11

1,269

Recognised actuarial gains (losses) Expected return on retirement plan assets Cost of services rendered Impact of reductions/liquidations Expenses booked Reconciliation of opening and closing net liability Liability at 1 ɸ January

- -

-

-

-

-

-47

-47

0

0

0

611

111 10,066

2,371 13,159

165 13,324

13,482

-8,654 133,464

22,245 160,537

1,399 161,936

Expenses booked Contributions paid

611

111

10,066

2,371

13,159

165

13,324

- -

-

-

-

-

Restatements and transfers Services paid by employer

-96

-753

-197

-1,045 -3,668

-11

-1,056 -3,791

-78

-2,095

-1,496

-123

Items not to be recycled in profit or loss

3,100

-3,820 -20,579

-2,376 -23,675

-

-23,675

Net liabilities at 31/12/2021

17,116 -12,459 120,103 20,548 145,307

1,430 146,737

Change in net liabilities

3,633

-3,805 -13,361

-1,697 -15,230

31 -15,199

Within the Group Risk Management Department, the Credit Risk Assessment Division 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 by producing a structuring opinion; 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, and in the event of significant adverse events; P annually reviewing AFD’s non-sovereign credit risks, monitoring borrowers under surveillance (watchlist) and measuring individual impairment (definition of the recoverability rate of doubtful loans); P developing tools, methods and training materials to evaluate credit risks, mainly for use by the operating departments. The role of the Risk Monitoring Division is to monitor financial risks (credit, counterparty, market, ALM, ɸ etc.) within the scope of consolidation (fully consolidated subsidiaries (1) and equity accounted investments (2) ) and ensure monitoring and control. In particular, it is responsible for continuously monitoring the Group’s risks in terms of position and outlook, by undertaking i) ɸ the secretariat and coordination of the AFD Risk Committee (CORIS), ii) ɸ the quarterly calculation of the Group’s collective

6.2.5 Risk information The role of the Executive Risk Department (DXR) is to analyse, inform and advise executive officers (Executive 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 ɸ 112 of the Order of 3 ɸ November 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 comprises:

(1) Soderag, Proparco, Sogefom, Fisea. (2) Société immobilière de Nouvelle Calédonie, Banque Socredo.

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2021 UNIVERSAL REGISTRATION DOCUMENT