AFD - Universal Registration Document 2020

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS 6 Notes to the consolidated financial statements

Expatriate employees healthcare expenses Retirement

Total defined benefit plans 10,091

Retiree health insurance

Retirement lump sum

Service award Grand total

in thousands of euros

Cost of services rendered over the period

450

140

7,557

1,943

189

10,280

Cost of past services

-

-

0

-

0

-

0

Financial cost for the period

122

0

1,268

212

1,603

14 49

1,617

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 Ǿ January

- -

-

-

-

-

49

0

0

0

573

140

8,826

2,155 11,694

252 11,946

11,797

-8,851 119,281

20,207 142,434

1,279 143,713

Expenses booked Contributions paid

573

140

8,826

2,155

11,694

252

11,946

- -

-

-

-

-

Restatements and transfers Employer contributions

-206

-567

-206

-980

-11

-991

-65

-2,043 7,967

-1,172 1,262

-3,280 10,669

-121

-3,401 10,669

Items not to be recycled in profit or loss

1,178

262

-

Net liabilities at 31/12/2020

13,482

-8,654 133,464 22,245 160,537

1,399 161,936 120 18,223

Change in net liabilities

1,685

196

14,183

2,039 18,103

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; 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 reviewing yearly AFD’s non-sovereign credit risks, monitoring of borrowers on the watchlist and appraising individual impairments; 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, Ǿ 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) Ǿ the secretariat and coordination of the AFD Risk Committee (CORIS), ii) Ǿ the quarterly calculation of the Group’s collective provisions on the contribution to the portfolio and the

6.2.5 Risk Information The role of the Executive Risk Department (DXR) is to analyse, inform and advise executive officers (Senior 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 Ǿ 112 of the Order of 3 Ǿ 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, Propasia. (2) Société immobilière de Nouvelle Calédonie, Banque Socredo.

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2020 UNIVERSAL REGISTRATION DOCUMENT