BUSINESS OVERVIEW

2019 Greater Grenoble Metropolitan Area – Wood-fired co-generation plant co-generation Wood-fired – Area Metropolitan Grenoble Greater CONTENTS

04 ) EDITORIAL

05 ) A WORD FROM THE CHAIRMEN

06 ) HIGHLIGHTS OF 2019

08 ) KEY FIGURES FOR 2019

10 ) NEW MEMBERS IN 2019

Department of Essonne – AGENCE LOCALE GROUP: Departmental domain of Méréville 12 ) A DUAL COMPANY GOVERNANCE “The AFL is not just a financial institution, at least not like any other. It is true that Department of LOCAL AUTHORITIES, OUR ONLY SHAREHOLDERS, OUR ONLY Essonne’s involvement with AFL is 14 ) BORROWERS a supportive act because we need to diversify and add a meaningful dimension to our financing sources. INCREASINGLY DIVERSIFIED ACCESS TO FUNDING Having a bank that belongs to the 16 ) local authorities in today’s world is important, at least for the chairman of the Department of Essonne.” 2019 RESULTS OF THE AGENCE FRANCE LOCALE GROUP François DUROVRAY, 18 ) Chairman of the Department of Essonne (91) 360 LOCAL AUTHORITY SHAREHOLDERS OF THE AFL GROUP

20) AT APRIL 30, 2020

BUSINESS PVERVIEW 2019 AFL 3 EDITORIAL A WORD FROM 2019 marked a new stage in AFL’s development in line with previous years: with more than 60 new members, the bank had more than 350 local authority shareholders as of end December. The model is dedicated to the “Engagement and Proximity” Act, allowing THE CHAIRMEN new types of shareholders, non tax-raising groupings of local authorities and local public entities to join the AFL Group. This marks true recognition of the success of our development by the highest state authorities. 2019 was a busy year for local authorities. Through the Great National Debate which followed popular street movements, a large number of In a market environment marked by free-flowing liquidity generated by the quantitative our citizens expressed what they were expecting the public authorities to easing policy of the ECB, Agence France Locale was able to raise resources amounting do in the face of economic and regional inequalities, the climate emergency and to one billion euros from investors, under excellent conditions. So once again, we funded social malaise. the projects of our member local authorities by producing credits of around one billion As local elected officials, we have fully played our role, alongside the State, in meeting euros, i.e. nearly 3.5 billion euros loaned since the creation of AFL. Since our members these expectations and making our territories part of a virtuous path to make them represent around 17% of the total debt stock of local authorities, we have an increasingly fair and sustainable places to live, factors of social integration, economic development, significant role in financing French local authorities. employment and solidarity. Each and every one of us is calling for strong action from the State in favor of We know that the year 2020 is being hit by a major health crisis, the impacts of decentralization so that the regions are finally given the resources to meet these major which, although difficult to gauge at this stage, will be significant for the country’s challenges. economy. In terms of local finance, we know that the traditional methods of financing The State’s response took the form of several legislative texts, notably the act on the local authorities will be undermined. In this context, our commitment is to continue orientation of mobility, the circular economy act and the act for Engagement and deploying our model in order to build what must, in the long term, become the symbol Proximity. All of which are useful first steps that should hatch other projects! of decentralization in our country. Among the measures taken, one in particular helped provide a response to a request that we had been making for several months via our national associations of elected More than ever and in accordance with the mandate defined by the local authority officials, i.e. to allow all of our local public investments to be eligible for financing by shareholders, the world of local government can and will be able to rely on its bank, our bank, the AFL, regardless of the legal entity that carries them (local authority, EPCI the AFL, to support local investment throughout the region, in both metropolitan and with or without separate taxation, local public establishment, etc.). rural areas, in both peri-urban areas and the overseas territories, in both This is an additional stage that we have created for the bank’s development. A bank Departments and Regions. that we wanted, in the image of our local authorities, transparent, agile and embodying responsible finance and concerned about the interest of future generations. The AFL was created in the aftermath of an economic Eleven local authorities signed the documents that created our institutions on October and financial crisis. For almost 5 years, through its 22, 2013. Today, we have close to 400 shareholder local and regional authorities, which constant development, it has shown its usefulness act as ambassadors for the financial autonomy of communities. at a time when liquidity was free-flowing. Today, but The health crisis that we are going through in 2020 is going to deeply impact the especially in future, it can show that it is indispensable. economic and social fabric of our regions. In the face of this crisis, we, the local authorities, have a major challenge ahead of us, namely to promote as far as possible the resurgence of activity nationwide. Being able to count on the bank that we govern to support us, in a context where our resources are limited and the traditional banking environment fraught with Olivier Landel, uncertainties, is key. Chief Executive Officer of Agence France Locale – Société Territoriale Yves Millardet, Chairman of the Executive Jacques Pélissard, Mayor of Lons-le-Saunier, Chairman of the Board of Directors of Agence France Board of Agence France Locale – Société Territoriale Locale Richard Brumm, Vice-Chairman of the Lyon Metropolitan Area in charge of finance, Chairman of the Supervisory Board of Agence France Locale

BUSINESS OVERVIEW 2019 AFL 5 HIGHLIGHTS OF 2019 JUNE ) Boosted by its relationships with the national associations of elected authorities, the AFL is present at the ANDAM, Villes de France and ANPP Conventions.

) For the first time, AFL brings out a 500 million Swedish Krona (SEK) issue with maturity at 15 years. JANUARY

) Since it was founded, AFL has loaned over Strasbourg city - Eco-quartier Danube Copyright @ SERS 2.5 billion euros to local authorities to JULY - AUGUST finance their equipment. ) By welcoming 14 new authorities as its members, including the City of ) The Occitanie Region joined Strasbourg, AFL completes its 21st AFL, becoming the second NOVEMBER capital increase. French Region shareholder. ) AFL participates in the 102nd AMF Claire Fita, President of the ) AFL meets associations of regional Mayors’ Convention. Finance Committee of the Region leaders at the AATF and ADGCF represents the local authority on Congresses. ) For the first time, AFL brings out a 15 the Board of Directors. million Australian Dollar (A$) issue with maturity at 10.5 years. Occitanie Region SEPTEMBER ) Claire Sorrentini joins AFL as DECEMBER FEBRUARY Development Director. M AY ) AFL welcomes 28 new authorities ) AFL completes its 19th capital increase ) S&P gives AFL the AA- rating. A first AFL reaches out to authorities during during its 22nd capital increase, the and welcomes 10 new member )  double rating for AFL and testimony to numerous events: Symposium, ISEFI, fourth in 2019, taking the total number authorities, taking the total number of its development. Conference of Cities of Urban France, of authorities as shareholders to 352 as local authorities as shareholders to over APVF and AMRF congress, meetings at December 31, 2019. 300. with elected authorities at the initiative The 4th annual Agency Day is held ) of ADM 87 and ADM 64. on May 23 at the General Meeting of ) AFL participates in the Regional Shareholders, on the premises of FNTP. ) AFL joins in the 30th anniversary Meetings of Strasbourg. of its Finnish counterpart Munifin. MARCH Congresses. ) The “Engagement and Proximity” act ) AFL completes its 20th capital is carried allowing AFL to broaden the ) AFL publishes its 2018 financials, which increase and welcomes 8 new member scope of its members to non-taxing exceed the targets fixed with nearly 70 authorities, including the municipalities groupings of local authorities and local new local authorities as shareholders of Viry-Chatillon and Pré-Saint-Gervais. OCTOBER public entities. A decree (published in and 830 million granted in loans. May 2020) specifies the conditions for ) Since it was founded, AFL passes the €3 billion mark for loans to local the membership of new shareholders. ) All of the national associations of authorities. elected local authorities request expanding the scope of AFL members ) AFL hosts the OCBF Convention in and aligning the prudential treatment of Lyon, the dinner for which is organized APRIL local government debt with the French in the Townhall. ) Finance Active publishes its Central Government. annual study on the financing of ) AFL meets investors through several local authorities in 2018 and sets ) AFL successfully completes its fifth roadshows in Eastern Europe and Asia. AFL’s market share at 5.1%. «benchmark» bond issue for an amount of 500 million euros. With demand in excess of 900 million euros, the investment is completed with a margin of 32 bp against French government bonds (OAT). Regional meetings of Strasbourg

BUSINESS OVERVIEW 2019 AFL 7 KEY FIGURES FOR 2019

AFL head and shoulders above other banks. It is managed by local 352 SHAREHOLDER authorities, mayors, presidents of LOCAL AND REGIONAL AUTHORITIES regions, departments, etc., the result AS OF DECEMBER 31 2019 SPLIT : being greater transparency with the financial tools made available to us. AFL also helps offer greater diversity in our banking products. Finally, the 2008 ) 2 Regions crisis showed us how some banks were 7 Departments incapable of providing us with financing. )  We had to create our own facility in order ) 262 Municipalities to guarantee means to sustainably finance our projects.” ) 2 Overseas communities Franck DUVAL , ) 12 Méetropolitan areas DGA of Cherbourg-en-Cotentin (50) ) 5 Urban communities ) 21 Suburban communities

) 37 Municipality communities Municipality of Cherbourg-en-Cotentin ) 4 Territorial public entities Quartier Grismenil - @Normandie Aménagement 60 LOCAL AUTHORITIES became shareholders in 2019 5,3% estimated market share in €978 MILLION 2019 in loans grantes by AFL in 2019 40,5% of the French population CAPITAL OF NEARLY 30% live in an AFL member local 282 LOAN CONTRACTS market share among AFL authority. signed in 2019 180 MILLION members in 2019 pledged by the local authorities as 170 LOCAL AUTHORITIES Our smallest member as at borrowed from AFL in 2019 shareholder 17% December 31, 2019: percentage of local public Juvrécourt (54) :

90 % debt from AFL members as 61 inhabitants the share of the consultations in which AFL was of December 31, 2019 involved in 2019 Our smallest loan in 2019 : Our largest member as at December 31, 2019: €13,000 € €3.5 BILLION Our largest loan in 2019 : Region Occitanie : in credit granted since 2015 €40 million 27 EMPLOYEES 5.8 millions inhabitants

BUSINESS OVERVIEW 2019 AFL 9 “What has been important to us at Billom’s municipal council is that we as a local authority NEW MEMBERS are participating in pooled financing. The fact “The difference between AFL and other banks that the AFL was a grouping of authorities that is the quality of the information they provide. created the equivalent to a banking organization During our consultation for a long-term loan was behind our wish to be a part of it. In our IN 2019 municipality, we have a project we call «A from four entities, two offers looked interesting to us, but one was at variable interest rate. We Cluster in France», a project worth almost €6 appreciated your very attractively-priced fixed million. When we were looking for financing, rate offer. This loan is intended to finance a we turned to AFL, which also provided us with specific project, namely the construction of a other answers. We chose to work with AFL, in new wastewater treatment plant needed by our particular for a loan of €1 million at 0%.” municipality. But I believe that we have inter- Jean-Michel CHARLAT, municipal projects for which a proposal could Mayor of Billom (63) be made, I hope, in particular for financing the completion of a footbridge to span the Moselle river which borders our municipalities.” Denis BLOUET, Mayor ofCorny-sur-Moselle (57)

Municipality of Billom, Through this membership, the Eglise Saint-Loup Occitanie Region intends to contribute toward establishing the financial autonomy and equity of local and regional authorities under a united approach, for more Occitanie Region transparent financing, in keeping “The first important thing for us is TER with its values.” the spirit of solidarity. The AFL is an offshoot of local and regional Carole DELGA, authorities. It seemed timely Président of the Occitanie Region to move in the direction of pooling financing systems. The “A bank created by local authorities, for local AFL is not designed to create authorities and in which customers are members, “At Saint-Louis-de-Montferrand, we hadn’t had seemed perfectly sound to me and it was to resort to borrowing in a long while. But with wealth for specific interests. The loan we took out was for obvious that we had to be a part of it. The loan the current economic situation and the drop in of €700,000 that we contracted is intended allocations, things were becoming financially making an investment of €1.3 million that we committed as part to finance part of the associative and cultural complicated. The Association of Mayors of cluster that we are building at a cost of €3 Municipality of Bayon– Village Centere Centere Village Bayon– Municipality of of the restructuring of the entire Gironde put us in touch with the AFL, which million. Authorities must be strong enough to conducted a quick-fire audit of our situation. school district. We are a municipality with sound management and treasury, be able to defend themselves on their own and Then, we were very soundly supported and avoid the classic financing pitfalls.” advised. We felt like we were being but to carry out other investments we thought sponsored. We were eligible and voted for it would be wiser to contract a loan with an Bernard PLAT, attractive rate of interest. Some might see it membership. Our municipality is located Mayor of Rochecorbon (37) up unitl May 2020 in a restricted environment, because as a risk, but when you do the math the risk we are in a flood zone. We cannot is extremely low. We believe that with all the build, but we are renovating our municipalities that have already joined, we have municipal buildings and we have sufficient financial clout to minimize the risk.” chosen to rent a pretty house Jacques BAUDOIN, in order to transform it into a Mayor of Bayon (54) up until May 2020 media library. AFL’s financing will let us complete this great cultural project.”

Josiane ZAMBON, Municipality of Saint-Louis-de-Montferrand. Village Center Mayor of Saint-Louis-de Municipality of Rochecorbon, Montferrand (33) Lanterne

BUSINESS OVERVIEW 2019 AFL 11 AGENCE FRANCE LOCALE : AGENCE FRANCE A CREDIT INSTITUTION LOCALE GROUP : ) ITS SHAREHOLDERS: Nicolas Fourt – Deputy Managing Director of A DUAL COMPANY GOVERNANCE ACOFI Gestion 99.9% owned by La Société Territoriale Mélanie Lamant – Managing Director, Services of Établissement Public Territorial (EPT) – LA SOCIÉTÉ TERRITORIALE : Plaine Commune A FINANCIAL COMPANY ) ITS MISSION : Olivier Landel – General Delegate of France • Operational management of the AFL Group Urbaine and Chief Executive Officer of Agence • Financing in the markets France Locale – Société Territoriale ) COMPANY SHAREHOLDERS : SAVOIE DEPARTMENT : Luc Berthoud - • Granting of credit to member local and Daniel Lebègue – Honorary Chairman Exclusive ownership of member authorities, Chairman of the Finance Committee regional authorities of the Observatory on Corporate Social shareholders owning 100% together: SEINE-SAINT-DENIS DEPARTMENT : Responsibility (ORSE, Observatoire sur la Municipalities, Departments, Regions, Public Stéphane Troussel (up until March 5, 2020) inter-municipal co-operation institutions (with Responsabilité Sociétale des Entreprises) or without separate taxes), Territorial and local Rollon Mouchel-Blaisot – Prefect, Director of MUNICIPALITIES: )  public entities. ITS GOVERNANCE : the National Action Program City Center MUNICIPALITY OF CONCHES-EN OUCHE : Jérôme Pasco – Mayor BOARD OF DIRECTORS AT DECEMBER Carol Sirou – President of Safineia Advisors LLC ) COMPANY MISSION : MUNICIPALITY OF GRENOBLE : Hakim Sabri - 31, 2019: • Promotion of AFL Group (among local Deputy Mayor in charge of Finance s Richard Brumm – Chairman authorities especially) and representation of Jacques Pélissard – Vice-Chairman the interests of member local and regional GREATER NANCY METROPOLITAN AREA : MANAGEMENT BOARD Pierre Boileau – Deputy Vice-Chairman of authorities; Lars Andersson – Founder of Kommuninvest Yves Millardet – Chairman of the Management Finance • Management of AFL Group membership; Board Victoire Aubry – Member of the Executive LILLE EUROPEAN METROPOLITAN AREA : Ariane Chazel – Head of Risk, Compliance and • Definition of the AFL Group’s strategic Committee of Icade in charge of Finance, Michel Colin – Vice-Chairman for Public Policy Control trajectories; Legal, and Information Systems • Management of the twofold guarantee system Assessment, Financial and Management Thiébaut Julin – Chief Financial Officer in place within the AFL Group Controls and Insurance François Drouin – Chairman of ETIFINANCE LYON METROPOLITAN AREA : Karine Dognin-

Sauze - Vice-Chairwoman for Innovation, Municipality of La ) COMPANY GOVERNANCE : Smart Cities and Digital Development Possession, City Center BOARD OF DIRECTORS MEETING OF STRASBOURG EUROPEAN METROPOLITAN AREA : Caroline Barrière – Vice-Chairwoman DECEMBER 31, 2019 for Budgetary and Financial Oversight Having a bank which truly belongs to local JACQUES PÉLISSARD - Chairman authorities is a symbol of solidarity between MUNICIPALITY OF ROQUEFORT-SUR- them. We were given a very warm and RICHARD BRUMM - Vice-Chairman SOULZON : Bernard Sirgue - Mayor sympathetic welcome. Being a local elected official, I am not a finance specialist, the REGIONS: TOULOUSE METROPOLITAN AREA : Sacha support given has been very educational. The Briand - Vice-Chairman in charge of Finance rating sent to us is useful because it lets us PAYS DE LA LOIRE REGION : gauge ourselves and know where we are in Laurent Dejoie - Vice-Chairman in charge terms of the state of our finances; each year of Finance it helps us to try and make progress in the GENERAL MANAGEMENT : management of our investments and debt.” OCCITANIE REGION : Olivier Landel – Chief Executive Officer Claire Fita - Chairman of Finance Vanessa MIRANVILLE, Yves Millardet – Deputy Chief Executive Officer Mayor of La Possession (974) DEPARTMENTS : ESSONNE DEPARTMENT : Dominique Echaroux – Vice-Chairman in charge of Finance

RAPPORTBUSINESS D’ACTIVITÉ OVERVIEW 2019 2019 AFL 1313 LOCAL AUTHORITIES, THE GROUP’S RAISON D’ÊTRE

OUR ONLY SHAREHOLDERS, “By creating the first bank we fully own and manage, we, the French local authorities, have 978 MILLION taken a meaningful political step towards million in loans granted by decentralization.” OUR ONLY BORROWERS AFL in 2019 Extract from the manifesto of the local shareholder authorities. In 2019, in line with the Pacte Act, AFL’s Board 282 of Directors wanted to launch a voluntary loan contracts signed in process aimed at establishing a raison d’être 2019 352 that formalizes and reasserts AFL’s DNA, as CHANGES IN THE SCOPE OF the total number of defined by the founding authorities. SHAREHOLDERS shareholder authorities 170 as at December 31, 2019. local authorities borrowed This approach, initiated during the year, The Engagement and Proximity Act of December 27, from AFL in 2019 culminated in 2020 as the starting point 2019 broadens the base of entities eligible for AFL for a more global project to strengthen the membership and states that “local authorities, their establishment’s CSR approach. groupings and local public entities” can now join AFL. 60 90% the number of new the share of the consultations shareholder authorities The objective is to consolidate its commitments in which AFL was involved in in 2019. in terms of sustainable development. This includes 2019 actions aimed at deploying the positive impact of AFL in its internal operations, its responsible banking missions, and also inside its governance. 2013 2019 The act governing the regulation Promulgation of the Engagement SHORT-TERM and separation of banking activities and Proximity Act broadening the LONG TERM The Group’s local and LOANS FACILITIES created Agence France Locale. base of eligible entities in the AFL. regional authority shareholders are the sole beneficiaries of the loans offered by Agence France Locale. AFL’s financing Entities eligible for membership: New eligible entities: LONG-TERM offers meet all of the » Regions » Non tax-raising grouping of local LOANS WITH financing needs of its PROGRESSIVE BRIDGING authorities LOANS shareholders. » Departments CASH » Local public entities OUTFLOWS » Municipalities » Tax raising groupings : A decree published in May 2020 • Municipality communities specified the eligibility criteria of • Suburban communities new AFL shareholders, the thresholds Our local authority joined AFL in 2016. By • Urban communities applicable to the financial situation and the debt levels of any entity becoming a participating in its capital, our urban community • Metropolis part of AFL’s capital after its publication. was able to benefit from nearly 23 million euros in • Territorial public entities loans at competitive rates over the past four years, whether for its main budget or for its water, sanitation or transportation budgets. For the Urban Community of Urban Community of Arras Arras, AFL is a reliable player dedicated to financing local Espace Chanteclaire @CU authorities so that we are able to successfully carry out our Arras @CU Arras regional development projects.” Pascal LACHAMBRE, President of the Urban Community of Arras (62)

RAPPORTRBUSINESS D’ACTIVITÉ OVERVIEW 2019 2019 AFL 1515 “It is always useful to diversify sources of financing because we have lived through some difficult times in terms of access to financing arrangements at the local authority level. AFL is geared toward INCREASINGLY DIVERSIFIED our expectations and needs; it is, therefore, important to go look for this additional financing. I work in a regional public entity of the Greater Paris Metropolitan Area with many projects that ACCESS TO FUNDING focus mainly on regional development and urban renewal. We estimate the overall financing need at 1 billion euros over the next ten years.”

From the point of view of the sources of financing, 2019 was marked by the launch of seven Laurent BACQUART, issues. They consisted of both public issues and private investments, denominated in euros Deputy Managing Director of the services EPT Greater Orly Seine and other currencies, some of which were new for AFL and with a wide range of maturities: Bièvre (91 and 94)

) On May 24, 2019, a fifth, 7-year, €500 ) AFL continued its strategy of diversifying Greater Orly Seine Bièvre, Extension line 15, Greater Paris Express @EPT Greater Orly million public issue was made at a margin its funding with private issues in Swedish of 32 basis points over the OAT curve. krona (500 million SEK and Australian With demand of more than €900 million dollars (15 million AUD) for the first time. and over fifty participating accounts, this OUR INVESTORS ) Finally, the AFL supplemented its issue aroused investor interest. At the program with several issues: in euros BY GEOGRAPHICAL ORIGIN (2015-2019) end of the year, AFL brought out another (€50 million with a 10 year maturity; €75 €190 million public issue by tapping the Other million with a 15 year maturity) and in June 2028 line. dollars (100 million USD with a 2 year maturity) Asia 3% Aa3 /P-1 12% 28% Rating Moody’s France (most recent credit opinion: April 27, 2020) Southern Europe 7% Outlook stable

18%

20% UK & Nordics 12% Germany, Austria & Switzerland AA- / A-1+ More than ever, entrepreneurship spirit and On an average, the 2019 issue program was carried Rating S&P financing the local economy in a responsible out at a cost corresponding to a weighted margin of Benelux (most recent credit opinion: May 27, way are priorities that we must support 31.6 basis points above the OAT curve and an average 2020) with all our energy and resources. With its maturity of 8.1 years. This ensures good backing of the Outlook stable impressive development over the recent years, and its major role today in the financing of balance sheet while controlling the cost of financing. regional and local authorities, Agence France BY TYPE (2015-2019) Locale strongly embodies those values. We are very proud to support the development The highlights of the past financial year include most Corporates of Agence France Locale as banking partner, notably the granting of a second rating for AFL, the €957 MILLION and more specifically as advisor on their Central banks & official raised on the bond market through Group’s issuing entity, by Standard & Poor’s. Now, like institutions recently established Sustainability Bond long-term issues in 2019 framework, which will facilitate the financing its Dutch and Scandinavian counterparts, the AFL has a high and equivalent rating from the two major rating Banks & privates of Environmental and Social long-term banks 5% investments by its shareholders. agencies, Moody’s Investors Service and S&P Global 26% Ratings. Close to 31% Felix ORSINI Global Head of Debt Capital Markets €4 BILLION à la Société générale raised since the founding of AFL

10% 28%

Insurers & Pension Asset managers funds

RAPPORTBUSINESS D’ACTIVITÉ OVERVIEW 2019 2019 AFL 1717 RESULTS OF THE AGENCE As of December 31, 2018, the AFL Group completed its fifth year of activity, exceeding the objectives it had set and continuing the implementation of its FRANCE LOCALE GROUP 2017-2021 strategic plan at three levels: (consolidated figures under IFRS) ) Continued strengthening of equity capital with memberships of new local authorities as expressed by their new stake in the capital of Société Territoriale; Financials as of December 31, 2019 point to the local authority bank’s continued ) The sustained and diversified increase in production of credit to member development, which was driven by further growth in credit activity and a sustained pace local authorities; of local authority memberships. Gross operating income amounted to -€503K, for net ) Continued diversification of the AFL investor base in the capital markets. banking income of €11,106K. Municipality of Huningue - BankMunicipality of Rhine @Huningue of The year 2019 saw another significant increase in AFL Group’s financials, which are part of its growth trajectory, in line with its 2017-2021 strategic MAIN ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS IN €K (IFRS) plan. This improvement in financials reflects the good revenue generation momentum generated by the AFL Group’s lending activity 2019 2018 since financial year 2015, when operations began, which is measured in particular by the increase in the outstanding portfolio of credit Cash in hand, central banks and overnight 182,211 180,026 granted to local authority members. deposits Securities 675,618 681,988 For the AFL group, the increase in outstanding loans and the Loans and receivables 3,160,500 2,229,911 control of expenses translated to a gross operating income of Debt securities 4,036,974 2,996,909 -€503K under IFRS accounting standards Equity 131,490 124,485 IFRS and a net income of -€1,186K after taking into account cost of 11,106 9,745 risk under IFRS 9, net losses on other assets and deferred tax assets. Net banking income Net interest margin – MNI 10,123 7,853 General operating expenses 11,609 11,049 Gross operating income -503 -1,304 Net banking income for the 2019 financial ) The administrative expenses, which Net profit -1,186 -1,705 year was €11,106K (compared to €9,745K amounted to €4,457K compared to in 2018, a year that was characterized by €4,255K at 12/31/2018 non-recurring capital gains on the sale of It should be noted, however, that the securities worth €1,637K). NBI for 2018 administrative expenses for 2019 take into BREAKDOWN OF OPERATING EXPENSES IN €K (IFRS) corresponded mainly to: account, on the one hand, the impact of ) A net interest margin increased in line the cancelation of the rent paid by AFL with the outstanding loans to €10,123K under the application of IFRS 16 to rental 2019 2018 compared to €7,853K at December 31, contracts, which lead to a reduction in 2018, an increase of 29%; general operating expenses of €337K, General operating expenses: 11,609 11,049 ) Gains of €500K from disposal of and on the other hand a provision of €71K Employee expenses 4,863 4,799 toward repair costs, following the AFL’s investment securities; Administrative expenses of which: 4,457 4,255 upcoming relocation from its current La ) Net result of hedge accounting - Information systems 1,586 Tour Oxygène offices. 1,532 information systems of €419K - Advisory 211 194 - Legal fees and rating 369 Finally, depreciation and amortization 196 Operating expenses were under control at amounted to €2,289K compared to - Custodian services 234 202 €9,320K versus €9,054K in 2018 €1,995K at December 31, 2018, an increase - Promotion 327 244 These charges break down as follows: of €294K, mainly following the first - Taxes 533 506 ) €4,863K in personnel costs (versus application of IFRS 16 with €258K of Net depreciation and amortization 2,289 1,995 €4,799K in 2018). additional amortization of the right-to-use asset rental by the Group

BUSINESS PVERVIEW 2019 AFL 19 Bretagne Municipality of , Municipality of

Côtes-d’Armor (22) Meuse (55) Municipality of Lannion Department of Meuse, Municipality of Pretz-en- Argonne 360 LOCAL AUTHORITY Finistère (29) Brest Metropolitan Area, Municipality of Brest, Moselle (57) Municipality of Lesneven, Suburban Community Municipality of Corny-sur-Moselle, Municipality SHAREHOLDERS OF THE AFL of Morlaix, Municipality of Plouvorn, Municipality of Jouy-aux-arches, Municipality of Metz, of Plouzané Municipality of Morhange, Municipality of Scy-Chazelles, Suburban Community of Val de Ile-et-Vilaine (35) Fensch, Municipality Community of Warndt, GROUP AS AT APRIL 30, 2020 Municipality Community of the Pays Haut Val Municipality of Ferré, Municipality of Le Verger, Municipality of Saint-Marc-le-Blanc , d’Alzette

Morbihan (56) Bas-Rhin (67) Municipality of Saint-Armel, Municipality of Municipality of Mundolsheim, Municipality Saint-Avé of Schiltigheim, Municipality of Strasbourg, Auvergne-Rhône-Alpes Strasbourg European Metropolitan Area Centre-Val de Loire Ain (01) Rhône (69) Haut-Rhin (68) Suburban Community of the Bassin de Municipality of La Mulatière, Lyon Metropolitan Indre (36) Municipality of Huningue, Municipality Bourg-en-Bresse, Municipality of Pont d’Ain, Area, Municipality of Millery, Municipality Municipality Community of Levroux Region Community of the Pays de Rouffach, Vignobles Municipality Community of Rives de l’Ain, Pays Community of Pays Mornantais, Municipality et Châteaux, Municipality Community of the du Cerdon, Municipality of Sainte-Euphémie, Community of La Vallée du Garon, Municipality Indre-et-Loire (37) Guebwiller Region, Municipality Community of Municipality of Thil, Municipality of Valserhône of Villeurbanne Municipality of Rochecorbon, Municipality of Sundgau, Municipality of Wittenheim Tours Vosges (88) Allier (03) Savoie (73) Municipality Community of Ballons des Hautes- Municipality of Arfeuilles, Municipality of Loir-et-Cher (41) Municipality of Challes-les-Eaux, Municipality Vosges, Suburban Community of Epinal, Cusset, Municipality of Domérat, Municipality of Suburban Community of Blois – Agglopolys, Community of Coeur de Savoie, Municipality Municipality of Voivres Espinasse-Vozelle, Municipality of Saint-Marcel- of Corbel, Suburban Community of Greater Municipality of Vendôme en-Marcillat, Municipality of Vichy, Suburban Chambéry, Municipality of La Motte-Servolex, Community of Vichy Municipality of Montmélian, Municipality of Loiret (45) Motz, Municipality of Pont-de-Beauvoisin, Municipality of Gidy, Municipality of Pannes, Hauts-de-France Municipality of Saint-Béron, Municipality of Municipality of Community of Plaine du Nord Ardèche (07) Aisne (02) Saint-Pierre-d’Entremont, Department of Savoie Loiret Municipality of Aubenas, Municipality Department of Aisne Community of Pays Beaume-Drobie, Corse Municipality of Bourg-Saint-Andéol, Municipality Haute-Savoie (74) Municipality of Monacia-d’Aullène Nord (59) of Chirols, Municipality Community of Rhône Annemasse – Les Voirons Suburbs, Municipality Municipality of Anzin, Municipality of Attiches, aux Gorges de l’Ardèche, Municipality of Saint- of Combloux, Municipality of Étrembières, Municipality of Aulnoy-lez-Valenciennes, Just-d’Ardèche Municipality of Saint-Julien-en-Genevois Municipality Community of Cœur de l’Avesnois, Municipality of Croix, Municipality of Cysoing, Ardennes (08) Urban Community of Dunkerque, Municipality Drôme (26) of Genech, Municipality of Landas, Lille Municipality Community of Val de Drôme Bourgogne-Franche-Comté Municipality Community of Ardenne Rives de Meuse, Municipality of Aubrives, Municipality of European Metropolitan Area, Municipality of Côte-d’Or (21) Foisches, Municipality of Hargnies Mons-en-Pévèle, Municipality of Montrécourt, Isère (38) Municipality of Collonges et Premières, Municipality Community of Pévèle Carembault, Municipality of Bourgoin-Jallieu, Municipality Municipality of Grosbois-en-Montagne, Municipality of Raimbeaucourt, Municipality of Community of Cœur de Chartreuse, Municipality Municipality of Izier, Municipality of Longvic, Aube (10) Sailly-lez-Lannoy, Municipality of Saint- Saulve, of Grenoble, Grenoble- Alpes Métropole, Municipality Community of La Plaine Dijonnaise, Municipality Community of Portes de Romilly- Municipality of Saulzoir, Municipality of Thun Municipality of Saint-Pierre-d’Entremont Municipality of Tart sur-Seine l’Evêque, Suburban Community of Valenciennes Metropolitan Area, Municipality of Doubs (25) Meurthe-et-Moselle (54) Wavrin, Municipality of Waziers Loire (42) Urban Community of Grand Besançon, Municipality of , Municipality Municipality of Boën-sur-Lignon, Municipality of Municipality of Huanne-Montmartin, Municipality Community of Bassin de Pompey, Municipality Bourg-Argental, Municipality of Saint-Sauveur- of Rigney of Bathelémont, Municipality of , Oise (60) en-Rue, Municipality of Saint-Jean-Bonnefonds, Municipality of Bayon, Municipality of Municipality of Grandvilliers, Municipality Municipality of Usson-en-Forez Jura (39) Bernécourt, Municipality of Bezange-la- of Noyon, Municipality Community of Pays Municipality of Lons-le-Saunier Grande, Municipality of , Municipality Noyonnais, Municipality of Plailly of , Municipality of Bures, Municipality Haute-Loire (43) of , Municipality of , Municipality of Chadron Saône-et-Loire (71) Pas-de-Calais (62) Municipality of Autun, Municipality of Chalon- Municipality of , Municipality of Urban Municipality of Arras, Municipality of sur-Saône, Municipality of Cressy-sur-Somme, , Greater Nancy Metropolitan Area, Carvin, Municipality of Merlimont, Municipality Puy-de-Dôme (63) Creusot Montceau Urban Community, Suburban Municipality of Hénaménil, Municipality of of Noyelles- sous-Lens, Suburban Municipality Municipality of Billom, Clermont Auvergne Community of Greater Chalon, Municipality of , Municipality of , Municipality of Pays de Saint-Omer, Municipality of Saint- Metropolitan Area, Municipality of Clermont- Mâcon, Department of Saône-et-Loire Community of Mad et Moselle, Municipality of Augustin, Municipality of Rang-du-Fliers Ferrand, Municipality of La Monnerie-le-Montel, , Municipality of Mandres aux Quatres Municipality of Loubeyrat, Municipality of Tours, Municipality Community of Moselle et Somme (80) Pontaumur, Municipality of Puy-Saint-Gulmier, Madon, Municipality of Montigny-sur-Chiers, Municipality of Amiens, Suburban Community Municipality of Teilhède, Municipality of Youx, Municipality of , Municipality of of Amiens Metropolitan Area, Municipality of Municipality of Riom Pagney-derrière-Barine, Municipality of , Rumigny Municipality of Richardménil, Municipality of , Municipality Community of Vézouze en Piémont, Municipality of ,

BUSINESS OVERVIEW 2019 AFL 21 Haute-Garonne (31) Sarthe (72) Île-de-France Nouvelle-Aquitaine Municipality of Aussonne, Municipality of Municipality Community of Huisne Sarthoise Bagnères-de-Luchon, Municipality Community Seine-et-Marne (77) Charente-Maritime (17) of Coteaux du Girou, Municipality of Flourens, Vendée (85) Municipality of Bernay-Vilbert, Municipality of Municipality Community of Gémozac, Municipality of Larroque, Municipality of Municipality of La Faute-sur-Mer, Suburban Chelles Municipality of Jazennes, Suburban Community Roquesérière, Municipality of Toulouse, Toulouse Community of Roche sur Yon, Municipality of of La Rochelle, Municipality of Matha Metropolitan Area, Municipality of Villariès Saint-Hilaire-de-Riez Yvelines (78) Municipality of Meulan-en-Yvelines, Municipality Dordogne (24) Gers (32) of Vaux-sur-Seine Municipality of Bergerac, Municipality of Municipality of Condom Provence-Alpes-Côte d’Azur Beynac-et-Cazenac, Municipality of Château- Essonne (91) l’Évêque, Suburban Community of Grand Hérault (34) Alpes de Haute-Provence (04) Municipality of Brunoy, Department of Essonne, Périgueux, Municipality of Peyrignac, Municipality of Balaruc-les-Bains, Municipality Municipality of Allons, Municipality of Banon, Municipality of Grigny, Municipality of Viry- Municipality of Saint-Martial-d’Albarède, of Pomérols, Sète agglopôle méditerranée Municipality of Mison Châtillon Municipality of Vitrac Lot (46) Hautes-Alpes (05) Hauts-de-Seine (92) Gironde (33) Municipality of Castelfranc, Municipality of Municipality of Eygliers, Municipality Community Municipality of Gennevilliers Municipality of Bordeaux, Bordeaux Duravel, Municipality Community of Vallée du of Guillestrois and Queyras, Municipality of Risoul, Metropolitan Area, Municipality of Le Bouscat, Lot and Vignoble Municipality of Saint-Clément-Sur-Durance, Seine-Saint-Denis (93) Municipality of Castillon-la-Bataille, Municipality Municipality of Saint-Crépin Municipality of Blanc-Mesnil, Municipality of Créon, Municipality of Peujard, Municipality Hautes-Pyrénées (65) of Clichy-sous-Bois, Municipality of Epinay- of Val-de-Livenne, Municipality of Saint-Louis- Municipality Community of Adour Madiran, Alpes-Maritimes (06) sur-Seine, Territorial Public Establishment of de-Montferrand, Municipality of Saint-Pierre- Municipality of Provence-Alpes-Côte d’Azur Suburban Community of Cannes Pays de Lérins Est Ensemble, Municipality of Livry-Gargan, d’Aurillac, Municipality of Saint-Romain-la- Municipality of Montfermeil, Municipality of Virvée Pyrénées-Orientales (66) Bouches du Rhône (13) Montreuil, Municipality of Noisy-le-Grand, Municipality of Pollestres, Municipality of Soler, Aix-Marseille Provence Metropolitan Area, Etablissement public territorial Plaine Landes (40) Municipality of Théza Municipality of Marseille, Municipality of Peypin, Commune, Municipality of Pré- Saint-Gervais, Municipality of Biscarosse, Municipality of Léon, Municipality of Puy- Sainte-Réparade Municipality of Rosny-sous-Bois, Municipality of Municipality of Mimizan, Municipality of Pouillon, Tarn-et-Garonne (82) Saint-Denis, Department de la Seine-Saint-Denis Municipality of Saint-Martin-de-Seignanx Municipality of Pollestres, Municipality of Soler, Var (83) Municipality of Théza Municipality of Gonfaron, Municipality Val-de-Marne (94) Lot-et-Garonne (47) Community of Pays de Fayence, Municipality of Municipality of Bry-sur-Marne, Municipality Municipality of Casseneuil, Municipality of Saint- Pays de la Loire Roquebrune-sur-Argens, Municipality of Seillans of Créteil, Territorial Public Establishment Maurin of Grand-Orly Seine Bièvre, Municipality of ) Pays de la Loire Region Vaucluse (84) Kremlin-Bicêtre, Municipality of Nogent-sur- Pyrénées-Atlantiques (64) Municipality of Merindol, Municipality of Pertuis Marne, Territorial Public Establishment of Paris- Municipality of Guéthary, Municipality of Oloron- Loire-Atlantique (44) Est-Marne et Bois, Municipality of Vincennes Sainte- Marie, Municipality of Pau, Suburban Municipality of Ancenis-Saint-Géréon, Community of Pau Béarn Pyrénées, Municipality Municipality of Pallet, Municipality of Collectivités d’outre-mer Val-d’Oise (95) of Saint-Etienne-de-Baigorry Loireauxence, Municipality of Nantes, Nantes Municipality of Bessancourt, Municipality of Metropolitan Area, Municipality of Rezé, Réunion (974) Gonesse, Municipality of Saint-Brice-sous-Forêt, Vienne (86) Municipality of Saint-Nazaire, Municipality of Suburban Community of Territoire de la Côte Suburban Community of Val Parisis Urban Community of Grand Poitiers, Sorinières, Municipality of Vertou Ouest, Municipality of La Possession Municipality of Ormes Maine-et-Loire (49) Saint-Pierre-et-Miquelon (975) Normandie Municipality of Beaucouzé, Municipality of Épieds, Overseas Community of Saint-Pierre-et-Miquelon Occitanie Municipality of Lion d’Angers, Municipality of Calvados (14) Saint-Augustin-des-Bois, Municipality of Saumur, Polynésie Française (987) Municipality of Fontenay-le-Pesnel, Municipality ) Occitanie Region Suburban Community of Saumur Val de Loire Municipality of Bora Bora, Overseas Community of Giberville of French Polynesia Ariège (09) Mayenne (53) Eure (27) Department of Ariège Municipality of Cossé-le-Vivien Municipality of Conches-en-Ouche, Municipality Amiens Métropolis - electric buses- @Amiens Métropolis Amiens Métropolis of Evreux, Municipality of Muzy, Municipality Aveyron (12) Community of the Pays de Conches, Municipality Municipality of Roquefort-sur-Soulzon Community of Roumois Seine, Municipality of “I think that for the first time, we have a tool that was designed by the authorities for Saint- Pierre-des-Fleurs, Municipality of Saint- Gard (30) the authorities. We did it at a time when financing was in crisis, but the response is Pierre-du-Bosguérard, Municipality of Thuit-de- Municipality Community of Cèze Cévennes, something we built together; today we have a truly great tool for our region. In the Amiens l’Oison, Municipality of Vernon Municipality of Comps, Municipality of Metropolitan Area, we have been a shareholder from the outset; the financing we receive Estézargues, Municipality of Fournès, allows us to carry out our investments. For example, we have set up a bus facility which Manche (50) Municipality Community of Pont du Gard, Municipality of Cherbourg-en-Cotentin Municipality of Roquemaure, Municipality of is a high-level service: 43 double buses, 100% electric buses, a project worth more than Saint-André d’Olérargues, Municipality of Saint- 122 million euros. We are the first city in Europe to implement this technology. We have Orne (61) Victor-de-Malcap, Municipality of Valliguières, commissioned the service on three of our trunk lines which serve the region. The goal Municipality of Alençon, Urban Community of Municipality of Vénéjan is to gradually replace the remainder in pace with our financial capacity. And we will Alençon need to borrow again to facilitate mobility and service our populations.” Seine-Maritime (76) Sébastien CAPRON, Municipality of La Feuillie, Rouen Normandy Chief Financial Officer of Metropolitan Amiens (80)

BUSINESS OVERVIEW 2019 AFL 23 You are a local authority : You are an investor:

Philippe ROGIER Thiebaut JULIN Chief Credit Officer Chief Financial Officer 04 81 11 29 32 04 81 11 29 33 [email protected] [email protected]

Laurence LEYDIER Romain NETTER Director of Local Authority Relations Director of Medium and Long-term Financing 04 81 11 29 37 04 26 07 60 91 [email protected] [email protected]

Astrée BOYET Maëlien BOREL Local Authority Relations Officer Front-Office Operator - Medium and long-term financing 04 69 84 81 02 04 26 07 60 90 [email protected] [email protected]

Claire SORRENTINI Development Director 04 69 84 81 09 [email protected]

www.agence-france-locale.fr

Agence-France-Locale @AgenceFRLocale [email protected]