AFD - Universal Registration Document 2020

PRESENTATION OF AFD AFD Group

to its customers (companies, professionals and individuals) affected by the health crisis. As of 30 Ǿ September 2020, Banque Socredo had granted 5,336 deferrals for an amount of €11.7M in deferred monthly instalments ( i.e. nearly €67M over the duration of the scheme), representing outstandings of €388M. With 30% of Socredo’s share capital, AFD is considered by the ACPR to be the reference banking shareholder, which implies an obligation of financial and technical support to its subsidiary. Beyond this consideration, Socredo also has targets and a strategy fully in line with those of AFD in the Pacific zone in terms of financial inclusion, sustainable development and regional integration. AFD is actively involved in Socredo’s governance with 3 out of 10 Ǿ Directors (with 5 Ǿ Directors from French Polynesia and 2 from the BRED). According to the recommendations of the ACPR, SOCREDO did not pay dividends to its shareholders in respect of its earnings recorded at the end of 2019. 1.5.3.5 Soderag The Regional Development Company of the Antilles-French Guiana (Soderag) is a regional development company in which AFD took control in 1995 at the State’s request. The extent of its losses and poor prospects led to the company’s liquidation in July Ǿ 1998. AFD took over its liabilities and is serving as the company’s receiver. Cash advances by AFD to this subsidiary amount to €106M and are fully written down in AFD’s parent company financial statements. 1.5.3.6 Sogefom The French Overseas Guarantee Fund Management company (Sogefom) is a company that manages guarantee funds in the French Pacific Collectivities, providing partial guarantees for financing operations undertaken by credit institutions in this zone. In particular, its aim is to support small and very small businesses (SMEs and VSEs) in a range of economic sectors. AFD manages Sogefom within the framework of a regulated agreement. After experiencing a strong increase in 2019 (+50%), the production of new guarantees in 2020 was down 47% in terms of amounts and 24% in terms of the number of guarantees granted. They break down as follows: P in New Caledonia , after having recorded a strong increase in new production in 2018 (+54%) and in 2019 (+70%), grants recorded a significant decrease of 52% in 2020. Production amounted to only €6.3M compared to €13.1M at the end of 2019. This year, it was not enough to offset the amortisation of outstandings, which amounted to €32.2M at the end of 2020, compared with €32.9M at the end of 2019; P in French Polynesia , production fell for the first time since 2015. This year, it stood at €18.7M compared with €34.3M in 2019 (-46%). Outstandings recorded at the end of 2020 amounted to €84.1M, up 9% compared to the outstanding amount at the end of 2019. They represent more than double that of New Caledonia and consist of 1,714 guarantees compared with 669 in New Caledonia.

initiated over the last ten years while capitalising on feedback, Fisea+ aims to support the creation and development of SMEs in Africa, with specific investment objectives in fragile countries, social and solidarity-based companies, and SMEs integrating digital innovation. These investments, still mainly concentrated on investment funds (80% of investments by amount) will be recorded on Fisea’s balance sheet. Fisea+ will open its investment period in early 2021. 1.5.3.4 Socredo bank SOCREDO (50% Country, 35% AFD and 15% BRED), a French semi-public company ( société anonyme d’économie mixte ) (law of 1946) with share capital of €184.4M, approved as a bank since 1984, is a major player in the financing of the Polynesian economy. It notably ensures a presence across the region, unlike the competing commercial banks. Its activities extend to every sector of the economy and, more particularly, to several key segments such as housing, the marine sector and tourism. It is heavily involved in marine transport that serves distant archipelagos such as the Tuamotu Archipelago, the Marquesas and the Austral Islands, in air transport as a shareholder in carriers Air Tahiti and Air Tahiti Nui, as well as in the housing sector. For many years, Socredo has been the top banking institution in Papeete, ahead of Banque de Polynésie (Société Générale Group) and Banque de Tahiti (Groupe BPCE), with 49% of the lending market and nearly 36% of the companies market, as well as 42.4% of the deposit market at end-December Ǿ 2019. In addition to its banking activities, Socredo has five main subsidiaries through which it extends its operating activities: OSB (Océanienne de services bancaires, specialised in e-banking), ODI (Océanienne d’industrie, specialised in cheque processing and electronic publishing), Ofina (Océanienne de financement, which sends and receives cash for American Express cardholders in the French Pacific), OCSD (Océanienne de conservation sécurisée de données, a secure data storage centre) and finally OCA (Océanienne de centre d’appel, a call centre). The Bank also wholly owns OCI (Océanienne de Capital Investissement) which manages the equity stakes and development interests of the “venture capital” activity. In 2016, it created OFIMMO (Océanienne de financement Immobilière), a company which is wholly-owned by OCI, with a view to preparing projects as part of the OLS-P (Social-private housing body) initiative. At 31 Ǿ December 2019, Socredo employed a headcount of 495 Ǿ people. Its balance sheet total amounted to €2.45bn, mainly comprising customer receivables (€1.90bn). The bank generated net banking income (NBI) of €80.2M and net income of €12.4M, compared with €81.1M and €14.8M respectively in 2018. All regulatory ratios are satisfactory. At the end of 2020, estimated outstanding loans amounted to €2.1bn, i.e. an increase of 10% mainly due to the granting of SGL (€127.5M). Estimated NBI and net income amounted respectively to €74.7M (-7%) and €2.5M (-396%). Regulatory ratios should remain satisfactory. In the context of the health crisis, since March Ǿ 2020, Banque Socredo has been granting deferrals for a maximum of 6 Ǿ months

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2020 UNIVERSAL REGISTRATION DOCUMENT