AFD // 2021 Universal Registration Document

AFD’S ANNUAL PARENT COMPANY FINANCIAL STATEMENTS Highlights of the financial year

7.1 Highlights of the financial year

7.1.1 Balance sheet growth At 31 ɸ December 2021, the total balance sheet stood at €56.9bn, up 6% compared to the previous year. This change mainly stems from the growth in activity, with an increase of 9.3% in outstanding loans on its own behalf over the period. 7.1.2 Financing of the Group’s activity To finance the growth of its own activity, AFD issued five public bonds and six private placements in 2021, as well as two tap issues, for a total volume of €7.5bn. 7.1.3 Appropriation of 2020 earnings Pursuant to Article ɸ 79 of the 2001 amending Finance Bill No. ɸ 2001-1276 of 28 ɸ December 2001, the amount of the dividend paid by AFD to the French State is set by ministerial decree. 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. 7.1.4 Increase in AFD’s capital allocation from 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. 7.1.5 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.

7.1.6 Extension of international moratoria – Covid-19 crisis

It should be recalled that, in 2020, the G20 focused the majority of its efforts on the global pandemic. One of the key actions was the launch, in coordination with the Paris Club, of a Debt Service Suspension Initiative for the Poorest Countries (DSSI) to help address financial vulnerabilities in developing countries and enable countries to devote resources to combating the pandemic. Numerous moratoriums have been granted by AFD as part of this process. These moratoriums resulted in the deferral of final payments due between 1 ɸ May and 31 ɸ December 2020. The deferred amounts will be repaid in six instalments scheduled for between 15 ɸ June 2022 and 15 ɸ December 2024 (phase ɸ 1). AFD signed agreements or amendments to initial agreements with 26 eligible countries to implement the extension of the debt service suspension initiative (phase ɸ 2) which applies to final payments due between 1 ɸ January and 30 ɸ June 2021. Given the significant financing needs that countries eligible for the DSSI initiative are expected to face this year, the Paris Club members and the G20 have approved the additional six-month extension of this initiative, until the end of December ɸ 2021 (phase ɸ 3). AFD signed an agreement or an amendment to an initial agreement with 22 ɸ countries and a bilateral agreement with nine countries under this last phase. The moratoriums generally granted to creditors, and intended to cover temporary cash flow difficulties linked to the Covid-19 crisis, have affected the repayment schedules of these receivables without substantially impacting their characteristics. As of 31 ɸ December 2021, the suspension of payments as part of Phase ɸ 2 and Phase ɸ 3 of the DSSI initiative had no material impact on the financial statements. 7.1.7 Application of the new de fi nition of ɸ default to the scope of ɸ 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 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 the end of December ɸ 2021, doubtful sovereign outstandings amounted to €610M. The doubtful rate of the sovereign loan portfolio rose from 0.01% to 2.7%.

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2021 UNIVERSAL REGISTRATION DOCUMENT