AFD - Universal Registration Document 2020

First page Table of contents Next page Last page

A word from the CEO	2
Our key figures	3
Our 2018-2022 strategy	5
4 Main operation regions	6
Methodology and glossary	8
1. Presentation of AFD	9
1.1 General information	10
1.1.1 Legal status	10
1.1.2 General information about AFD’s share capital	10
1.1.3 Current breakdown of share capital and voting rights	11
1.1.4 AFD’s stock issues	11
1.1.5 Dividends	11
1.2 AFD Group’s 2018-2022 strategy	11
1.2.1 AFD Group’s missions and commitments	11
1.2.2 AFD Group’s action	11
1.3 AFD operations	12
1.3.1 General comments	12
1.3.2 Activities of AFD on its own behalf	12
1.3.3 Other AFD activities	13
1.3.4 AFD mandate-specific activities	14
1.3.5 AFD’s operating scope (see Appendix I)	14
1.3.6 Information about any restrictions on the use of capital that have materially affected, or could materially affect, directly or indirectly, the issuer’s operations.	14
1.4 Financing activities on its own behalf	15
1.5 AFD Group	17
1.5.1 Scope of consolidation	17
1.5.2 Information about subsidiaries	17
1.5.3 Presentation of subsidiaries	18
1.6 Activities of the Agence Française de Développement Group in 2020	20
1.6.1 International context	20
1.6.2 Information about offices and activities at 31 December 2020	23
1.6.3 AFD Group activities	23
1.6.4 AFD’s activities in foreign countries	27
1.6.5 AFD activities in French Overseas Departments and Collectivities	33
1.6.6 Intellectual production	35
1.6.7 Proparco’s activity	37
2. Statement of Non-Financial Performance	39
2.1 The business model	41
2.2 Identification of the main non-financial challenges and risks	41
2.3 Managing the risks and impacts of our action	44
2.3.1 AFD’s management of environmental and social impacts, and the procedure for managing complaints	44
2.3.2 Proparco’s management of environmental and social impacts, and the procedure for managing complaints	45
2.3.3 Human Rights due diligence	47
2.4 The Group’s contribution to sustainable development	48
2.4.1 Impacts of AFD’s activity	48
2.4.2 Impacts of Proparco’s activity	50
2.4.3 Impact of the Group’s activity on climate change	51
2.4.4 Impacts related to the Group’s activity in reinforcing social relations	54
2.5 Transparency and dialogue with stakeholders	54
2.5.1 Transparency of funds granted	54
2.5.2 Dialogue with stakeholders	55
2.6 Coordination with development actors: priority to partnership	56
2.6.1 Partnerships with civil society organisations	56
2.6.2 Partnerships with European and international players	56
2.6.3 Support for project management and the building of capacities	57
2.7 Fair practices	57
2.7.1 Initiatives for preventing corruption, fraud, money laundering, terrorist financing and tax evasion	57
2.7.2 Checks made during a project’s life cycle	58
2.7.3 Checks carried out as part of the foreign public procurement process	58
2.7.4 Counterparty commitments	59
2.7.5 Information reporting systems	59
2.7.6 Training of Group employees	59
2.7.7 Initiatives undertaken to prevent tax evasion	59
2.7.8 Specific risks of non-compliance related to the Covid-19 crisis	60
2.8 A meaningful work environment	61
2.8.1 The ethics system	61
2.8.2 Skills development, employability and training	61
2.8.3 Employee dialogue and social relations	62
2.8.4 Promotion of professional equality and diversity	64
2.8.5 Quality of employee working conditions and safety	64
2.9 Report by one of the Statutory Auditors, appointed as independent third party on the consolidated non-fi nancial statement	67
3. Corporate governance	69
3.1 Report on corporate governance	70
3.1.1 Separation of the functions of Chairman and Chief Executive Officer	70
3.1.2 Executive Committee	71
3.1.3 The Board of Directors	71
3.1.4 Remuneration and benefits to the executive officers	77
3.1.5 Remuneration and benefi ts of the executive officers	77
3.1.6 Other information	77
3.2 Remuneration policy and practices	79
3.2.1 Remuneration policy governance	79
3.2.2 Principal remuneration policy characteristics	80
3.2.3 Information about remuneration for executive officers and individuals whose professional activities have a signifi cant impact on the company’s risk profile	81
4. Risk management	83
4.1 Risk factors	84
4.1.1 Banking and financial risks	84
4.1.2 Non-financial risks	88
4.1.3 Health and safety risks	90
4.2 Basel III Pillar 3	92
4.2.1 General principles	92
4.2.2 Scope of application	92
4.2.3 Equity	92
4.2.4 Risk exposure and evaluation procedures	95
4.3 Risk management	101
4.3.1 Internal control and risk monitoring	101
4.3.2 Internal control procedures and organisation of audit trail for accounting and financial information (Article L. 225-100-1-5)	104
4.3.3 Credit risk	104
4.3.4 Comprehensive interest rate, foreign exchange, liquidity and market risks	105
4.3.5 Major risk ratio	105
4.3.6 Other operational risks	105
5. Financial information	109
5.1 Recent changes and future prospects	110
5.1.1 Recent changes	110
5.1.2 Future prospects	110
5.1.3 Borrowings	111
5.1.4 Information about trends	111
5.1.5 Significant change in the issuer’s financial position	111
5.2 Post-closing events	111
5.3 Economic presentation of the consolidated financial	112
5.3.1 Consolidated balance sheet (in millions of euros)	112
5.3.2 Consolidated income statement	115
6. Consolidated fi nancial statements prepared in accordance with IFRS accounting standards adopted by the European Union	119
6.1 Overview	120
6.1.1 Balance sheet at 31 December 2020	120
6.1.2 Income statement at 31 December 2020	122
6.1.3 Net income, gains and losses recognised directly as equity at 31 December 2020	123
6.1.4 Statement of changes in shareholders’ equity from 1 January 2019 to 31 December 2020	124
6.1.5 Cash flow statement at 31 December 2020	125
6.2 Notes to the consolidated financial statements	126
6.2.1 Significant events at 31 December 2020	126
6.2.2 Accounting standards applied to Agence Française de Développement	128
6.2.3 Principles for the preparation of the consolidated financial statements of the AFD Group at 31 December 2020	129
6.2.4 Notes to the financial statements at 31 December 2020	141
6.2.5 Risk Information	158
6.2.6 Additional information	167
6.3 Statutory auditor’s report on the consolidated financial statements	169
6.4 Statutory auditors’ special report on related-party agreements	174
6.5 Statutory auditors’ fees	178
7. AFD’S annual parent company financial statements	179
Balance sheet at 31 December 2020	180
Balance sheet at 31 December 2020	181
2020 income statement	182
7.1 Highlights of the financial year	183
7.1.1 Growth of the balance sheet	183
7.1.2 Financing of the Group’s activity	183
7.1.3 Appropriation of 2019 earnings	183
7.1.4 Proparco capital increase	183
7.1.5 The impact of the health situation linked to the COVID-19 pandemic	183
7.2 Accounting principles and assessment methods	185
7.2.1 General comments	185
7.2.2 Conversion of foreign currencies	185
7.2.3 Loans to credit institutions and customers	185
7.2.4 Short-term and long-term investments	186
7.2.5 Shares in related businesses, equity stakes and long-term investments	186
7.2.6 Bonds	187
7.2.7 Grants	187
7.2.8 Fixed assets	187
7.2.9 Forward financial instruments	187
7.2.10 Provisions	188
7.2.11 Reserve for General Banking Risk (RGBR)	192
7.2.12 Subordinated debt	192
7.2.13 Financing commitments	192
7.2.14 Guarantee commitments	192
7.2.15 Disclosure on non-cooperating States and territories	192
7.2.16 Other information related to consolidation	192
7.2.17 Events after the reporting period	192
7.3 Notes to the financial statements at 31 December 2020	193
7.4 AFD’s financial results over the last five financial years	204
7.5 Statutory auditor’s report on the financial statements	205
8. Person responsible for the Registration Document and the Audit of the financial statements	211
8.1 Name and position	212
8.2 Certification of the person responsible	212
8.3 Name, address and qualification of the financial statements’ statutory auditors	212
8.4 Information policy	212
9. Additional information	213
9.1 Cross-reference table of the management report	214
9.2 Incorporation by reference	215
9.3 Cross-reference table between Appendices 1 and 2 of the delegated regulation 2019/980 and the Universal Registration Document	215
9.4 Cross-reference table of the CRR articles and the Pillar III report tables	218
9.5 Appendix 1 – AFD’s operating region	221
9.6 Appendix 2 – AFD simplified balance sheet based on French GAAP	223
9.7 Appendix 3 – AFD simplified income statement based on French GAAP	224
9.8 Appendix 4 – Key ratios and indicators	225
9.9 Appendix 5 – Results of operating activities for the last 5 reporting years (parent company basis)	225
9.10 Appendix 6 – AFD approvals	226
9.11 Appendix 7 – Summary table of AFD’s and Proparco’s loans in foreign countries	227
9.12 Appendix 8 – Table of Proparco’s approvals	230
9.12.1 Appendix 8.1: part 1	230
9.12.2 Appendix 8.2: part 2	231
9.13 Appendix 9 – Note on the Statement of Non-Financial Performance methodology	232
9.14 Appendix 10 – Statement of Non-Financial Performance appendices	235
9.14.1 Statement of Non-Financial Performance Appendix 1: Materiality matrix	235
9.14.2 Statement of Non-Financial Performance Appendix 2: Grenelle II Law indicators – Labour information	236
9.14.3 Statement of Non-Financial Performance Appendix 3: Grenelle II Law indicators – Environmental information	239

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