AFD // 2021 Universal Registration Document

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PRESENTATION OF AFD

Activities of the Agence Française de Développement Group in 2021

Gross consolidated outstandings on guarantees at 31 ɸ December 2021 amounted to €105.0M compared to €116.4M at the end of

After experiencing a year in 2020 marked by a significant decline in its activity to €25M in the context of the Covid crisis and the roll-out of SGLs in the Pacific (47% decrease in amount terms and 24% decrease in number of guarantees granted), 2021 was marked by a moderate recovery in activity to €28M: P in New Caledonia, after a sharp 52% downturn in activity with €6.2M in 2020, production amounted to €6.6M in 2021, remaining below 2019 (€13.1M). This year, it was not enough to offset the amortisation of outstandings (excluding funds under management), which amounted to €27.5M at the end of 2021, compared with €32.2M in 2020; P in French Polynesia, after a major downturn in production in 2020 to €18.7M compared to €34.3M in 2019 ( i.e. a decrease of 46%), activity also recovered to a production level of €21.4M in 2021. Outstandings recorded at the end of 2021 amounted to €77.4M compared with €84.1M, i.e. down 8% compared with 2020. They represent more than double the amount recorded in New Caledonia and consist of 1,600 ɸ guarantees compared with 613 ɸ in New Caledonia; P in Wallis and Futuna, the fund did not change this year with zero production, as in 2019 and 2020. Outstandings only comprise four guarantees for €0.1M.

2020. It was thus down by 9.8%. 1.5.3.6 Property companies

Inconnectionwith itsoperations inFrenchOverseasDepartments and Collectivities, AFD was a shareholder, alongside the State and local authorities, of six property companies, the SIDOMs. At the end of 2015, the Government announced its intention to reorganise the shareholding of the SIDOMs by transferring its equity investments to a public operator specialising in social housing, the Société Nationale Immobilière (SNI), a wholly owned subsidiary of the Caisse des Dépôts et Consignations. The State asked AFD to sell its own shares at the same time as the transfer. The salewas completed on 19 ɸ December 2019 andAFDno longer holds any equity investments in the capital of Sidom (except for SIC in New Caledonia), which was sold at a price of €20.9M. As a result, as of the end of 2019, AFD’s equity investment in its own name in the share capital of SIC in New Caledonia was down to 50%, so the company was not included in the transaction as the State had no equity interest in this company. financial year. The second wave of Covid-19 in the spring of 2021 was particularly virulent and mitigated the upturn in investment and the effects of budgetary and monetary support. While India’s external balances remain solid, a continuing high budget deficit (-11.3% of GDP in the 2022 financial year) should increase the weight of public debt, which would reach 90.6% of GDP at the end of March ɸ 2022. The economic impact of the Covid-19 crisis is also likely to weaken a banking sector that was still recovering prior to the crisis. The Philippines and Indonesia have struggled to contain the epidemic, which is weighing on the service sector and domestic demand. A moderate upturn (which was revised downwards) in these economies was therefore expected in 2021 (+3.2% for both counties) before a return to more vigorous growth in 2022. The recovery of economic activity in 2021 was dynamic in Eurasia, despite the acceleration of inflation, under the combined effect of the increase in global food and commodity prices, currency devaluations and the recovery of demand. The economic outlook for Armenia was significantly revised upwards to +6.4%, due to the strong performance of exports and domestic demand, despite the conflict with Azerbaijan at the end of 2020 and the turbulence of internal politics in early 2021. Real GDP also grew faster than expected in Georgia (+7.7%), thanks to a sustained fiscal stimulus and despite a tense political situation. Higher oil prices and the increase in public spending on the reconstruction of Nagorno-Karabakh should also lead to a moderate upturn in activity in Azerbaijan (+3%). Uzbekistan’s growth should also be higher than expected

1.6 Activities of the Agence Française de Développement Group in 2021

1.6.1 International context THE YEAR IN 2021

After activity fell -2.1% in developing countries in 2020, the IMF estimates that economic growth in emerging and developing countries recovered sharply to +6.5% in 2021. At the end of the year, emerging and developing Asia was the world region that saw the largest downward revision of its growth outlook for 2021 (-1.4 ɸ percentage points compared to April ɸ 2021) due to new lockdowns related to the resurgence of the epidemic due to the delta variant. However, the region remained the most dynamic worldwide, with growth of +7.2% in 2021, supported in particular by external demand and the manufacturing sector, at least during the first part of the year. Chinese growth stood at +7.9% in 2021, but the economic recovery remains unbalanced to the detriment of consumption and a slowdown was observed in Q3 and Q4 ɸ 2021, as a result of the delta variant, difficulties in the real estate sector, floods, and the energy crisis. The Chinese authorities have tightened credit conditions, with the aim of correcting growing vulnerabilities in the financial system and stabilising the indebtedness of non financial companies and households. In Vietnam, a new wave of the epidemic, coupled with a low vaccination rate, forced the country to lock down its economic centres during the summer of 2021, which should weigh on internal consumption and private investment. After a major recession (-7.3%) in the 2021 financial year, Indian growth is expected to rebound to +9.5% in the 2022

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2021 UNIVERSAL REGISTRATION DOCUMENT