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BUSINESS OVERVIEW

2018 04_ EDITORIAL We used the loan to finance a developmental project on the left bank of the . This €24 million project is a response to issues 05_ A WORD FROM THE CHAIRMEN involving the environment, risk prevention “(flooding), urban planning, quality of life for 06_ AGENCE LOCALE GROUP: local residents and attractiveness to tourists. Copyright Axe Saône A DUAL COMPANY GOVERNANCE Mathieu BOCQ, Deputy Managing Director, Resource Services and Local Services, Suburban Community of Vichy 08_ KEY FIGURES FOR 2018

10_ 2018 HIGHLIGHTS

12_ NEW MEMBERS IN 2018

14_ LOCAL AUTHORITIES: AFL-ST’S ONLY SHAREHOLDERS

CONTENTS 15_ LOCAL AUTHORITIES: AFL’S ONLY BORROWERS Allier left bank project, Suburban Community of Vichy 16_ INCREASINGLY DIVERSIFIED ACCESS TO FUNDING

17_ ACCESS TO AFL FUNDING: A FEW KEY FIGURES

We joined Agence France Locale for the attractive financing solutions and 18_ AGENCE FRANCE LOCALE GROUP FINANCIALS to increase competition in our municipal project financing consultations. Membership has been good for us – not only have we gotten very competitive interest rates thanks to AFL, it has forced our traditional banks 20_ AFL GROUP SHAREHOLDERS: 302 AUTHORITIES AS OF APRIL to offer us loans with better interest rates, better withdrawal terms and greater flexibility of use. 30, 2019

School complex construction, Our community is experiencing considerable demographic growth, around Saint-Julien-en-Genevois three to four percent per year. This means that there are many projects underway locally. We used AFL exclusively for one of our projects: the completion of a school complex (pre-school, elementary, community park) for delivery in the fall of 2019. The total budget is €16 million, half of which is financed by borrowing. AFL loans enabled us to finance €2 million of it.»

Antoine VIELLIARD, Mayor of Saint-Julien-en-Genevois

BUSINESS OVERVIEW 2018 AFL “ 3 A word FROM THE CHAIRMEN EDITORIAL The year 2018 was a historic turning point for our country and our communities. Faced with economic and regional inequalities, a lack of social well-being and disturbing climatic disruptions, more than ever, the citizens we serve want Agence France Locale reached new heights of growth in 2018. strong and visible actions to these major challenges, for us and for future For its fourth year of operation, it extended over €2.5 billion in credit to generations. local authorities and granted over €800 million in loans in 2018 alone. As local elected officials, it is our responsibility to be part of a virtuous No fewer than 69 new authorities joined Agence France Locale in 2018, path to make our communities fair and sustainable places to live making the number of shareholder authorities 292 as of the end of the year. that facilitate access to public services for all, job-creating Our members represent just over 15% of French local public debt and, economic development, intergenerational solidarity and according to the latest Finance Active study, Agence France Locale financed 5.1% social inclusion for everyone. of long-term loans in 2018, just four years after its founding; this market share Far from theoretical or political discourse, as local elected rises to 25% for AFL members only. officials of the regions, departments, metropolitan At the same time, it successfully continued its fundraising with a €625 million bond issue, Jacques Pélissard, areas and municipalities of France, we expect concrete which allowed it to expand and consolidate its investor base. Mayor of Lons-le-Saunier, decisions in this area. Many of us are calling for a new Chairman of the Board of We are proud of the growth of the only bank fully owned and managed by local Directors of Agence France decentralization act so that communities can have the authorities. Locale - Société Territoriale resources and tools needed to meet these major challenges. This success is based on a model that pools French local authorities’ access to financial In 2013, after over ten years of action, we managed to create the markets and redistributes them in the form of loans to its shareholders so they can first of our tools, a bank inspired by the Nordic model, fully owned by local finance investment in any type of equipment under the best possible conditions. Richard Brumm, authorities and fully dedicated to local public investment. Vice-Chairman of the Thanks to this model and in accordance with the mandate entrusted to it by the member Metropolitan Area Our goal is to enable local authorities to always have access to financial authorities, Agence France Locale supports local investment throughout the country, in charge of finance, resources under conditions that are transparent and fair for everyone, giving metropolises and suburbs, countries and overseas towns, small municipalities and large Chairman of the them leeway to invest, regardless of the policies and strategies of private banks, regions. Supervisory Board of the market fluctuations that have become more obvious since the financial crisis Agence France Locale We look forward to continuing this momentum in 2019 – and we’re already part of the way and the recentralizing of access to credit by the French government. there thanks to new members such as the Occitanie Region. Eleven local authorities signed the documents that created our institutions on October 22, 2013. Today, we have over 300 shareholder local and regional authorities, which act as ambassadors for the financial autonomy of communities. Agence France Locale is much more than just a banking partner. It is a product of local governments. It is an expression of the values we hold dear: fairness, transparency, proximity, flexibility and solidarity. It is the symbol of responsible and efficient management of public finances. Yves Millardet, Chairman of the Executive Board of Through membership, each shareholder local authority contributes to making Agence France Locale this historic creation a success and building a powerful tool for action and Olivier Landel, Chief Executive Officer decentralization. of Agence France Locale – Société Territoriale

BUSINESS OVERVIEW 2018 AFL 5 Municipality Community of La Vallée du et du Vignoble: Touzac, Suspension bridge Agence France Locale Group : A DUAL COMPANY GOVERNANCE

La Société Territoriale: Agence France Locale: A financial company A specialized credit institution Its shareholders: Its mission: Its Shareholders: Its mission: Owned exclusively by member local Promotion of AFL Group (among local 99.99% owned by La Société AFL Group operational management and regional authorities, which are authorities especially) and representation of Territoriale Market financing its only shareholders: municipalities, the interests of member local and regional Granting of credit to shareholder member departments, regions, groupings of authorities; local and regional authorities municipalities and local government Management of AFL Group membership; agencies Definition of the AFL Group’s strategic trajectories; Management of the twofold guarantee system in place within the AFL Group. Its governance: Its governance:

BOARD OF DIRECTORS AT DECEMBER 31, 2018 SUPERVISORY BOARD AT DECEMBER 31, 2018 JACQUES PÉLISSARD I Chairman  RICHARD BRUMM I Vice-Chairman RICHARD BRUMM I Chairman  JACQUES PELISSARD I Vice-Chairman

REGIONS: MUNICIPALITIES: LARS ANDERSSON I Founder of Kommuninvest PAYS DE LA REGION: MUNICIPALITY OF CONCHES-EN-OUCHE: VICTOIRE AUBRY-BERRURIER I Member of the Executive Committee of Icade in charge of Finance, Legal, Laurent Dejoie I Vice-Chairman in charge of Jérôme Pasco I First Deputy Mayor and Information Systems Finance MUNICIPALITY OF : FRANÇOIS DROUIN I Chairman of ETIFINANCE OCCITANIE REGION [AS OF 1/10/19]: Hakim Sabri I Deputy Mayor in charge of Finance NICOLAS FOURT I Deputy Managing Director of ACOFI Gestion Claire Fita I Chairman of Finance GREATER NANCY METROPOLITAN AREA: MÉLANIE LAMANT I Managing Director, Services of Établissement Public Territorial (EPT) - Plaine Commune Pierre Boileau I Vice-Chairman in charge of Finance OLIVIER LANDEL I General Delegate of France Urbaine EUROPEAN METROPOLITAN AREA: and Chief Executive Officer of Agence France Locale - Société Territoriale DEPARTMENTS : Michel Colin I Vice-Chairman for Public Policy Assessment, Financial and Management Controls and Insurance DANIEL LEBÈGUE I Chairman of the Observatory on Corporate Social Responsibility (ORSE, Observatoire sur DEPARTMENT: la Responsabilité Sociétale des Entreprises) Dominique Echaroux I Vice-Chairman in charge of LYON METROPOLITAN AREA: Karine Dognin-Sauze I Vice-Chairman for Innovation, ROLLON MOUCHEL-BLAISOT I Prefect, National Program Director of Action Coeur de Ville Finance Smart Cities and Digital Development CAROL SIROU I Chairman of Safineia Advisors LLC SAVOIE DEPARTMENT: EUROPEAN METROPOLITAN AREA: Luc Berthoud I Chairman of the Finance Committee Caroline Barrière I Vice-Chairman for Budgetary and Financial SEINE-SAINT-DENIS DEPARTMENT: Oversight Stéphane Troussel I Chairman MUNICIPALITY OF ROQUEFORT-SUR-SOULZON: Bernard Sirgue I Mayor THE EXECUTIVE BOARD MÉTROPOLE: YVES MILLARDET I Chairman Sacha Briand I Vice-Chairman in charge of Finance ARIANE CHAZEL I Head of Risk, Compliance and Control THIÉBAUT JULIN I Chief Financial Officer GENERAL MANAGEMENT: OLIVIER LANDEL I Chief Executive Officer YVES MILLARDET I Deputy Chief Executive Officer BUSINESS OVERVIEW 2018 AFL 7 KEY Key figures for 2018 FIGURES 2018 € 831,4 million in loans granted by AFL in 2018

202 loan contracts signed in 2018

138 local authorities borrowed from AFL in 2018

Rehabilitation of the old train station into a co-working space - Pays de St Omer € 2,5 billion in credit granted since 2015 During our banking consultation, AFL offered a range of diversified and secure financial 69 local authorities products. Being a shareholder in our own bank BECAME SHAREHOLDERS IN 2018 through the ownership of capital helped us to Our smallest loan in 2018: €12,800 make our choice, as did a broad knowledge of the local issues of a bank created by local and Our largest loan in 2018: €40 million regional authorities themselves. In 2016, the Suburban Community of the Pays de Saint-Omer bought the Saint-Omer train station, which was closed by the SNCF since 2011 because of risk 39% 292 shareholder of falling rocks. Thanks to a huge construction OF THE FRENCH POPULATION project (€11 million), the community transformed LOCAL AND REGIONAL AUTHORITIES AS this venerable 3,000 square meter building into 5,1% LIVES IN AN AFL MEMBER OF DECEMBER 31, 2018 : La Station: a space dedicated to new forms of estimated market share in 2018 LOCAL AUTHORITY work like co-working spaces and Fablab… and reopened the station by renting space to the 1 Région SNCF. 25 % 7 Départments François DECOSTER, market share among AFL members in 2018 President of the Suburban Community of the Our smallest member 214 Municipalities Pays de Saint-Omer as of Dec. 31, 2018: 2 Overseas communities Juvrécourt (54): 61 inhabitants 12 Métropolitan areas 15% percentage of local public debt from AFL members Our largest member 4 Urban communities as of December 31, 2018 as of Déc. 31, 2018 : 19 Suburban communities Pays de la Loire Region: 3.71 million inhabitants 29 Municipality communities 27 employees 4 Territorial public entities

BUSINESS OVERVIEW 2018 AFL 9 Hightlights SEPTEMBER OF 2018 20 new authorities join the AFL during its 17th capital increase, including the Suburban Community of Vichy and the City of .

The Metropolis of Grenoble is the 12th metropolitan area to join AFL.

AFL is taking part in the Journée des maires du Bas-Rhin in Strasbourg on September 14 and will introduce attendees to its activities. JANUARY JUNE

Since it was founded, AFL has lent more than €1.6 billion OCTOBER

The AFL passes the €2 billion mark for loans to local authorities. FEBRUARY AFL gives presentations alongside AFL completes its 15th capital increase and elected officials over two mornings welcomes 26 new member authorities organized with the department’s Association of Mayors. The department of Seine Saint-Denis joins the Group and becomes the seventh shareholder Lendosphère, the participatory financing department platform that has been partnering with AFL since 2016, launches its first transaction for the City of Malaunay in Seine-Maritime. NOVEMBER Creation of a Village House in MARCH The AFL Group welcomes 10 new authorities, Saint-Marcel-en-Marcillat including the Municipality of Bora Bora in French Polynesia, on the occasion of its 16th capital increase. AFL welcomes its first member authority in We asked AFL to finance our recently : the municipality of Cossé-le-Vivien completed Village House. Municipal AFL successfully completes its fourth benchmark financing was 100% paid for by Agence issue (€500 million), which will mature in 2028. France Locale. First, we took out a long- term loan on which we have been repaying principal and interest from the beginning. APRIL On June 28, the AFL Group’s governing bodies meet in Strasbourg at the headquarters of Agence France Locale participates in the “We though the amortization schedule was well suited to our needs and the interest AFL publishes its 2017 financials, which Eurométropole, a member since 2015. 101st AMF Congress of Mayors. showed continued growth with 223 authorities rates were reasonable. Then we took out a AFL participates in the Africities Summit in as shareholders and loan commitments up bridge loan to support the VAT advance, and Marrakech to contribute its expertise to the 63%. the terms were reasonable and the rates very creation of a local financing agency for the competitive. JULY- AUGUST whole African continent. Alain VERGE, Mayor of Saint-Marcel-en-Marcillat MAY AFL gives a presentation at the Association The third annual Agency nationale des pôles d’équilibre territoriaux et Day is held on May 17 at ruraux et des Pays in Castelnaudary on July 5. the General Meeting of DECEMBER Shareholders. AFL renews its partnership with the Association AFL welcomes 13 new authorities during its 18th capital increase, the fourth in 2018, for a total of 69 new des Administrateurs Territoriaux de France at their members at the end of 2018. Congress in Toulouse. The Occitanie Region votes to become an AFL member.

AFL participates in the inauguration of the new headquarters of the Etablissement public territorial Grand Orly Seine Bièvre, a member since 2014, which it helped to finance.

BUSINESS OVERVIEW 2018 AFL 11 New members

IN 2018 The local authority used to finance its investments through traditional banks. Agence France Locale (AFL) offers new opportunities and establishes healthy competition with those banks. Beyond the optimization of financing costs (through reasonable rates), we wanted to protect ourselves and secure The Suburban Community of Vichy decided to join AFL to diversify its our financing needs. If there’s another crisis in the banking sources of financing because it embarked on an ambitious investment sector like in 2008, local authorities can continue to borrow program. The Suburban Community of Vichy is a perfect fit for a banking from a financial institution such as AFL, whereas banks may institution by and for local authorities regardless of their size and be more timid. The greatest advantage is financial: La Roche- financing needs. AFL’s structure is light and very responsive, and no sur-Yon Suburban Community is achieving economies of scale commissions are ever paid. The AFL is also very well positioned in the “ thanks to reasonable interest rates. The second advantage is market during banking consultations. the terms of loans offered by AFL, which are often longer than Mathieu BOCQ, in the traditional banking sector. Deputy Managing Director, Resource Services and Local Services, Luc BOUARD, Suburban Community of Vichy President of La Roche-sur-Yon Suburban Community

Agence France Locale’s approach is adapted to the specific features of local Construction of an aquatic center - La authorities, and the people we deal with are attentive and competent. We Roche-sur-Yon Suburban Community have formed a long-term, trusting relationship with AFL. I believe that in a democracy, it is unthinkable for us to be under the yoke of traditional lenders. Also, traditional lenders don’t have specialists in local public finance.

Olivier MARTIN, AFL membership started us on an President of the Municipality Community of Cèze Cévennes upward spiral and helped to begin a new chapter for the City of Grigny. Last year, we had no access to bank loans and there was nowhere we could turn. The «small» loan from AFL of €1 million was the first step toward recovery. Having AFL as a partner created a significant Construction of a purification plant in the leverage effect that culminated in the We were reassured by a banking model dedicated solely to local Municipality of Estézargues signing of a budgetary and financial authorities that they manage as shareholders. We were interested Construction of a health center in La commitment agreement with the in this because we still remember the toxic loans offered by some Grande Borne – City of Grigny banks. As Vice-President of the Municipality Community of the French government, followed by the Pont du , I worked on its membership with Agence France Grigny 2030 Financial Pact. AFL was Locale, then the City Council decided that it could be advantageous an essential partner that stopped us from drowning in debt. A year ago, we had a deficit of 20%, or for Estézargues as well, despite the initial investment, because our €15 million. Now it’s 1% and we’re steadily paying down our debt. Our loans with AFL are helping low debt ratio limited the cost of entry. us to maintain our amenities, our 27 schools and 5 gyms, and to get caught up! We also opened a health center in the Grande Borne neighborhood. Thanks to the loans taken out with AFL, we are building a new purification plant for the town and will also finance accessibility for As I see it, AFL’s usefulness has been inversely proportional to its size! municipal buildings.

Philippe RIO, Martine LAGUERIE, Mayor of Grigny Mayor of Estézargues

BUSINESS OVERVIEW 2018 AFL “ 13 Local authorities, Local authorities, AFL-ST’S ONLY SHAREHOLDERS AFL’S ONLY BORROWERS

The Group’s local and regional authority shareholders are the sole beneficiaries of the loans offered 69 local authorities BECAME AFL GROUP SHAREHOLDERS by Agence France Locale. AFL’s financing offers meet all of the financing needs of its shareholders. IN 2018, BRINGING THE TOTAL NUMBER OF MEMBERS TO 292 as of 31/12/18

Becoming AFL informs the local The local authority then signs a shareholder authority of the amount of its the instrument of assent to THE LOCAL Initial Capital Contribution the Shareholders’ Agreement AUTHORITY IS (ICC). It corresponds to 0.8% PAYMENT OF THE and becomes a shareholder of The local authority applies ASSIGNED A of its outstanding debt or INITIAL CAPITAL Société Territoriale when the for membership with AFL by FINANCIAL RATING 0.25% of its actual operating CONTRIBUTION capital is increased. It then LONG TERM SHORT-TERM telephone, e-mail or via the revenue, whichever figure is begins to participate in the LOANS FACILITIES dedicated portal greater. The local authority Group’s governance. portail.agence-france-locale.fr deliberates to approve 202 loan contracts membership. signed in 2018 The AFL gives the local The local auhority becomes authority a financial rating a member upon payment of of between 1 and 7. With a the ICC or the first tranche rating of 1 to 5.99, the local of the ICC for payments 138 local authorities authority can join. For ratings in several installments. It DELIBERATIVE SIGNATURE OF THE of 6 and above, the local may then apply to AFL for borrowed from AFL in 2018 VOTE BY INSTRUMENT OF APPLYING FOR authority cannot become a financing. THE LOCAL ASSENT TO THE MEMBERSHIP member during the current LONG-TERM AUTHORITY SHAREHOLDERS’ fiscal year LOANS WITH BRIDGE AGREEMENT PROGRESSIVE LOANS CASH OUTFLOWS € 831,4 million million in loans granted by AFL in 2018

In 2018, AFL-ST continued to make ICC calculation methods and payment terms from prior years more flexible (namely by eliminating the ICC minimum threshold and offering the option to make ICC payments in five or more stages depending on how much was borrowed) by allowing local authorities to become members based on one or more subsidiary budgets, excluding the main budget. The Greater Grenoble Metropolitan Area joined the Group in 2018 under these terms.

In 2018, the Metropolis mobilized a €3 million Construction of a cogeneration plant, Greater Grenoble loan from Agence France Locale to help finance Metropolitan Area the construction of the Biomax cogeneration plant, Being a Group shareholder which will replace heavy fuel oil-powered equipment In 2018, the Board of Directors approved the establishment of a mechanism to further promote and supply between 15,000 and 20,000 homes with Choosing to be a shareholder in your the AFL Group model through stronger dialogue between representatives of member local heat and 10,000 homes with electricity using local own bank means participating in the authorities and local elected representatives in the form of meetings in local communities, wood. By optimizing energy yields, this equipment collective construction of a shared local partnerships, outreach on social networks, co-signing letters etc. will help control consumer sale prices. With a cost means of guaranteeing sustainable, of €57.6 million (excluding taxes), the equipment Each new shareholder of Société Territoriale becomes an ambassador of the model among permanent and secure access to should be delivered in March 2020. This is the largest its peers. “ financial resources under the best investment in the urban heating network since 1992, conditions. which is already the second-largest nationwide, Jacques PÉLISSARD present in seven municipalities and scheduled to Chairman of the Board of Directors The values of the Group expand into even more. of Agence France Locale - Société Raphaël GUERRERO Territoriale are therefore upheld by our shareholders Vice-Chairman in charge of Finance, Greater Grenoble Metropolitan Area TRANSPARENCY LOCAL SOLIDARITY PROXIMITY FLEXIBILITY FAIRNESS

BUSINESS OVERVIEW 2018 AFL 15 Increasingly diversified AFL funding access

ACCESS TO FUNDING We are pleased to have supported the A FEW KEY FIGURES creation of Agence France Locale and to have contributed, over the last four years, all of our experience to the successful In 2018, for the first time in its history, AFL financed itself on the launch on the bond market of a local GEOGRAPHICAL DISTRIBUTION OF authority financing agency in France long portion of the curve, taking advantage of attractive market modeled after ones that have existed for OUR INVESTORS conditions. Three issues were launched: many years in the countries of Northern [2015- 2018] Europe

A ten-year and a fifteen-year private placement issues of €25 Marc VINCENT, Other Global Head of Corporate & Investment million and €100 million respectively, at a margin of 25 basis Banking, member of the Senior Asia France € 625 million points above the French government bond (OAT) curve; Management Committee of Natixis 4% raised on the bond market through On June 12, 2018, a third public issue of €500 million with a long-term issues in 2018 maturity of 10 years took place at a margin of 30 basis points above 12% 28%

the OAT curve. Southern Europe 8% Over These three issues were well received by investors, once again demonstrating their confidence in the AFL Group model, its development trajectory since April 2015 € 3 billion 17% and, more broadly, the credit quality of the French local sector. Germany, Austria & raised since the founding of AFL in 19% Switzerland UK & 2015 Nordics 12%

Benelux

The Territoire de la Côte Ouest (TCO) wanted to encourage partnership with a bank Aa3/P-1 controlled by local authorities for greater transparency in the financing chain. In 2018, TYPE OF INVESTORS the TCO benefited from more reasonable interest rates than those offered by other «traditional» financial providers in the local market. AFL’s offers to the TCO depend on [2015- 2018] Rating (most recent credit opinion: the local authority’s rating, not its geographical area. We also appreciate the flexibility March 20, 2019) and responsiveness with which loans are granted. The TCO asked AFL to cover 2018 Corporates investments such as the creation of the Ecole Artistique Intercommunale de l’Ouest Central banks & Outlook stable with the mobilization of a €4 million loan. official institutions Joseph SINIMALE, Président of the TCO Banks & privates banks 7% 29% 28% AA-/A-1+

9% 27% Rating (May 2019)

Insurers & Fund managers Pension funds Outlook stable

Project for creating the Ecole Artistique Intercommunale de l’Ouest – TCO BUSINESS OVERVIEW 2018 AFL 17 Agence France Locale As of December 31, 2018, the AFL Group completed its fourth year of activity, exceeding the objectives it had set and continuing the implementation of its 2017-2021 strategic plan at GROUP FINANCIALS three levels: Continued reinforcement of equity capital with memberships of new local uthorities as expressed by their new stake in the capital of Société Territoriale; (Consolidated figures under IFRS) The sustained and diversified increase in production of credit to member local authorities; Financials as of December 31, 2018 demonstrate to the local authority bank’s continued Continued diversification of the AFL investor base in the capital markets. development, which was driven by further growth in credit activity and a sustained pace of local authority memberships. Gross operating income amounted to -€1,304 thousand, for net banking income of €9,745 thousand. MAIN ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS)

The year 2018 saw another significant increase in AFL Group’s 2018 2017 financials, which are part of its growth trajectory, in line with its 2017- Cash in hand, central banks and overnight deposits 180,026 633,784 2021 strategic plan. This improvement in financials reflects the good Securities 681,988 363,554 revenue generation momentum generated by the AFL Group’s lending Loans and receivables 2,229,911 activity since financial year 2015, when operations began, which is 1,430,829 Debt securities measured in particular by the increase in the outstanding portfolio of 2,996,909 2,335,802 Equity credit granted to local authority members. 124,485 120,968 Net banking income 9,745 10,722 Net interest margin - MNI 7,853 6,552 General operating expenses (details below) 11,049 10,566 Gross operating income -1,304 156 In 2018, for the AFL Group, the increase in outstanding loans combined with the control of Net profit -1,705 - 423 expenses resulted in gross operating loss of €1,304 thousand under IFRS and a net loss of €1,705 thousand after the cost of risk under IFRS 9 and deferred tax assets were taken In thousand € into account. These results break down as follows:

Net banking income for the 2018 financial year was €9,745 thousand (compared to BREAKDOWN OF OPERATING EXPENSES (IFRS) €10,722 thousand in 2017, a year that was characterized by non-recurring capital gains on the sale of securities of €4,494 thousand). NBI for 2018 corresponded mainly to: 2018 2017 a net interest margin of €7,853 thousand, an increase of 20% compared to €6,552 thousand in the previous financial year, General operating expenses 11,049 10,566 net capital gains on the sale of investment securities of €1,636 thousand, Employee expenses 4,799 4,835 commission income of €162 thousand, and Administrative expenses of which: 4,255 3,831 a net loss in hedge accounting of -€4 thousand. - Information systems 1,532 1,621 - Advisory 194 68 Operating expenses were under control at €11,049 thousand (versus €10,566 thousand - Legal fees and rating 196 255 in 2017, a year that had been characterized by a reversal of €488 thousand in provisions - Custodian services 202 200 for risks and charges). These charges break down as follows: - Promotion 244 232 €4,799 thousand in personnel costs (versus €4,835 thousand in 2017); - Taxes 506 110 Administrative expenses, which were €4,255 thousand, versus €3,831 thousand Net depreciation and amortization 1,995 1,914 as of December 31, 2017, which, as indicated above, included a €488 thousand In thousand € reversal of a provision for risks and charges. Excluding this exceptional item, administrative expenses are stable from one year to the next; €1,995 thousand for net depreciation and amortization (compared with €1,914

thousand in 2017). BUSINESS OVERVIEW 2018 AFL 19 Corse Plailly. Municipality of Monacia-d’Aullène Pas-de-Calais (62) 302 local authorities Urban Community of , Municipality of Carvin, Municipality of Merlimont, Suburban Community of the Pays as AFL Group (08) de Saint-Omer, Municipality of Rang-du-Fliers Municipality Community of Ardenne Rives de , (80) Municipality of Aubrives Municipality of , Suburban Community of Amiens shareholders (10) Metropolitan Area, Municipality of Rumigny AT APRIL 30, 2019 Municipality Community of Portes de Romilly-sur-Seine Île-de-France Meurthe-et- (54) Seine-et- (77) Municipality of , Municipality of Bathelémont, Municipality of Bernay-Vilbert, Municipality of Chelles Municipality Community of Bassin de Pompey, Municipality Auvergne-Rhône-Alpes of , Municipality of Bernécourt, Municipality of (78) Bezange-la-Grande, Municipality of , Municipality Haute-Savoie (74) Municipality of Vaux-sur-Seine (01) of Bures, Municipality of , Municipality of , Annemasse - Les Voirons Suburbs, Municipality of Municipality of Pont d’Ain, Municipality Community of Rives Municipality of , Greater Nancy Metropolitan Area, Combloux, Municipality of Étrembières, Municipality of Essonne (91) de l’Ain - Pays du Cerdon, Municipality of Sainte-Euphémie, Municipality of Hénaménil, Municipality of , Saint-Julien-en-Genevois Municipality of Brunoy, Department of Essonne, Municipality Municipality of Thil Municipality of , Municipality of Montigny-sur-Chiers, of Grigny, City of Viry-Châtillon Bourgogne-Franche-Comté Municipality of , Municipality Community of Allier (03) Moselle et Madon, Municipality of , Municipality of Hauts-de-Seine (92) Municipality of Cusset, Municipality of Domérat, Richardménil, Municipality of Sionviller, Municipality of Côte-d’Or (21) Municipality of Gennevilliers Municipality of Saint-Marcel-en-Marcillat, Suburban , Municipality of , Municipality of Municipality of Collonges et Premières, Municipality of Community of Vichy, Municipality of Vichy Grosbois-en-Montagne, Municipality of Izier, Municipality of Meuse (55) Seine-Saint-Denis (93) Longvic, Municipality Community of La Plaine Dijonnaise, Ardèche (07) Department of Meuse, Municipality of Pretz-en-Argonne Municipality of Le Blanc-Mesnil, Municipality of Clichy- Municipality of Tart sous-Bois, Municipality of Epinay-sur-Seine, Etablissement Municipality of Aubenas, Municipality of Bourg-Saint- public territorial Est Ensemble, Municipality of Livry-Gargan, Andéol, Municipality of Chirols, Municipality Community of Moselle (57) (25) Municipality of Montfermeil, Municipality of Montreuil, Rhône aux Gorges de l’Ardèche, Municipality of Saint-Just- Suburban Community of Val de Fensch, Municipality of Suburban Community of Grand Besançon, Municipality of Municipality of Noisy-le-Grand, Municipality of Rosny-sous- d’Ardèche , Municipality of Morhange, Municipality of Scy- Huanne-Montmartin, Municipality of Rigney Chazelles, Municipality Community of Warndt Bois, Etablissement public territorial Plaine Commune, Drôme (26) Department of Seine-Saint-Denis, Municipality of Saint- (39) Denis Municipality Community of Val de Drôme Bas-Rhin (67) Commune of Lons-le-Saunier Municipality of Schiltigheim, Strasbourg European Val-de-Marne (94) Isère (38) Metropolitan Area Saône-et-Loire (71) Municipality of Bry-sur-Marne, Municipality of Créteil Municipality of Bourgoin-Jallieu, Municipality Community of Municipality of Autun, Municipality of Chalon-sur-Saône, Cœur de Chartreuse, Municipality of Grenoble, Grenoble- Haut-Rhin (68) Municipality of Kremlin-Bicêtre, Municipality of Nogent- Municipality of Cressy-sur-Somme, Creusot Montceau Urban Alpes Métropole, Municipality of Saint-Pierre-d’Entremont Municipality of Huningue, Municipality Community of the sur-Marne, Municipality of Vincennes, Territorial Public Community, Municipality of Mâcon, Department of Saône- Pays de Rouffach, Vignobles et Châteaux, Municipality Establishment of Grand-Orly Seine Bièvre, Territorial Public et-Loire Loire (42) Community of the Guebwiller Region, Municipality Establishment of -Est-Marne et Bois Community of Sundgau, Municipality of Wittenheim Municipality of Boën-sur-Lignon, Municipality of Bourg- Bretagne Val-d’ (95) Argental, Municipality of Saint-Sauveur-en-Rue, Municipality of Saint-Jean-Bonnefonds, Municipality of Usson-en-Forez Côtes-d’Armor (22) (88) Municipality of Bessancourt, Municipality of Gonesse, Suburban Community of Epinal, Municipality of Les Voivres Municipality of Saint-Brice-sous-Forêt, Suburban Community Haute-Loire (43) Municipality of Lannion of Val Parisis Hauts-de-France Municipality of Chadron Finistère (29) Normandie Brest Metropolitan Area, Municipality of Brest, Municipality (02) Puy-de-Dôme (63) of Lesneven, Suburban Community of Morlaix, Municipality (14) Department of Aisne Municipality of Billom, Clermont Auvergne Metropolitan of Plouvorn, Municipality of Plouzané Municipality of Giberville Area, Municipality of Clermont-Ferrand, Municipality of La (59) Monnerie-le-Montel, Municipality of Loubeyrat, Municipality Ile-et-Vilaine (35) (27) of Pontaumur, Municipality of Puy-Saint-Gulmier, Municipality of Anzin, Municipality of Attiches, Municipality Municipality of Ferré, Municipality of Le Verger, Municipality Municipality of Conches-en-Ouche, Municipality of Municipality of Teilhède, Municipality of Youx, Municipality of Aulnoy-lez-Valenciennes, Municipality Community of of Saint-Marc-le-Blanc Evreux, Municipality Community of the Pays de Conches, of Riom Cœur de l’Avesnois, Municipality of Croix, Municipality of Municipality Community of Roumois Seine, Municipality of (56) Cysoing, Urban Community of Dunkerque, Municipality of Rhône (69) Genech, Municipality of Landas Saint-Pierre-des-Fleurs, Municipality of Saint-Pierre-du- Municipality of Saint-Armel, Municipality of Saint-Avé Bosguérard, Municipality of Thuit-de-l’Oison, Municipality Municipality of Mons-en-Pévèle, Municipality of Municipality of La Mulatière, Lyon Metropolitan Area, of Vernon Municipality of Millery, Municipality Community of Pays Centre-Val de Loire Montrécourt, Municipality Community of Pévèle Carembault, Mornantais, Municipality Community of La Vallée du Garon, Municipality of Raimbeaucourt, Municipality of Sailly- (50) Municipality of Villeurbanne -et-Loire (37) lez-Lannoy, Municipality of Saint-Saulve, Municipality Municipality of Cherbourg-en-Cotentin Municipality of Tours of Saulzoir, Municipality of Thun l’Evêque, Suburban Savoie (73) Community of Valenciennes Metropolitan Area, Municipality (61) Municipality of Challes-les-Eaux, Municipality of Corbel, Loir-et- (41) of Waziers, Municipality of Wavrin, Lille European Metropolitan Area Municipality of Alençon, Urban Community of Alençon Suburban Community of Greater Chambéry, Municipality of Suburban Community of – Agglopolys, Municipality of La Motte-Servolex, Municipality of Montmélian, Municipality Vendôme Seine-Maritime (76) of Motz, Municipality of Le Pont-de-Beauvoisin, Municipality Oise (60) of Saint-Béron, Municipality of Saint-Pierre-d’Entremont, (45) Municipality of Grandvilliers, Municipality of Noyon, Municipality of La Feuillie, Normandy Metropolitan Municipality Community of Pays Noyonnais, Municipality of Area Department of Savoie Municipality of Gidy, Municipality Community of Plaine du Nord Loiret BUSINESS OVERVIEW 2018 AFL 21 Capvern, Municipality of Pujo Nouvelle-Aquitaine Our structure was headed toward a tense financial -Maritime (17) Pyrénées-Orientales (66) position by 2020. This tension was the result of fragile self-financing for an ambitious investment Municipality Community of Gémozac, Suburban Community Municipality of Pollestres, Municipality of Soler of , Municipality of Matha program. We improved the operating aspect of our Tarn-et-Garonne (82) financial position to advance our self-financing. We (24) Municipality Community of Quercy Caussadais CCentre Bourg, Duravel, turned to the partner that offered us the best rates. Municipality of Bergerac, Municipality of Beynac-et-Cazenac, Pays de la Loire Municipality Community of La Vallée du Lot et du Vignoble It was almost natural that our choice in 2018 was Suburban Community of Grand Périgueux, Municipality Agence France Locale. We were the first grouping of of Peyrignac, Municipality of Saint-Martial-d’Albarède, Pays de la Loire Region municipalities in this beautiful rural department of Lot Municipality of Vitrac to join AFL. This desire was the result of our reflective Loire-Atlantique (44) (33) process, and the idea of having a bank created by and Municipality of Ancenis-Saint-Géréon, Municipality of Le Municipality of , Bordeaux Metropolitan Area, Pallet, Municipality of Loireauxence, Municipality of , for local authorities with a flexible and cooperative Municipality of Le Bouscat, Municipality of Peujard, Nantes Metropolitan Area, Municipality of Rezé, Municipality operating model suited us perfectly. It spoke to our Municipality of Val-de-Livenne of Saint-Nazaire, Municipality of Sorinières, Municipality of ‘country common sense. Vertou “ (40) Serge BLADINIERES, Municipality of Biscarosse, Municipality of Mimizan, Maine-et-Loire (49) President of the Municipality Community of La Vallée Municipality of Saint-Martin-de-Seignanx Municipality of Beaucouzé, Municipality of Épieds, du Lot et du Vignoble Lot-et-Garonne (47) Municipality of Saint-Augustin-des-Bois, Municipality of Saumur, Suburban Community of Saumur Val de Loire Municipality of Saint-Maurin Mayenne (53) Pyrénées-Atlantiques (64) Municipality of Cossé-le-Vivien Municipality of Guéthary, Municipality of Oloron-Sainte- Marie, Municipality of Pau, Suburban Community of Pau (72) Béarn Pyrénées, Municipality of Saint-Etienne-de-Baigorry Municipality Community of Huisne Sarthoise (86) Vendée (85) Urban Community of Grand Suburban Community of La Roche sur Yon, Municipality of Saint-Hilaire-de-Riez Occitanie Embankment project – Rivière des Galets and Ravine de l’Hermitage TCO Provence-Alpes-Côte d’Azur Occitanie Region Alpes de Haute-Provence (04) Ariège (09) Municipality of Mison Department of Ariège Alpes-Maritimes (06) (12) Suburban Community of Cannes Pays de Lérins Municipality of Roquefort-sur-Soulzon Bouches du Rhône (13) Gard (30) Aix- Provence Metropolitan Area, Municipality Municipality Community of Cèze Cévennes, Municipality of of Marseille, Municipality of Peypin, Municipality of Puy- Comps, Municipality of Estézargues, Municipality of Fournès, Sainte-Réparade Municipality Community of Pont du Gard, Municipality of Roquemaure, Municipality of Saint-André d’Olérargues, (83) Municipality of Saint-Victor-de-Malcap, Municipality of Municipality of Gonfaron, Municipality Community of The Territoire de la côte Ouest (TCO) is recognized at the Valliguières, Municipality of Vénéjan Pays de Fayence, Municipality of Roquebrune-sur-Argens, highest national level for its actions to promote sustainable Municipality of Seillans Haute-Garonne (31) development. At the beginning of 2019, we signed the Ecological Municipality of Aussonne, Municipality of Aussonne (84) Transition Contract with the French government, which was our Bagnères-de-Luchon, Municipality Community of Les Municipality of Merindol, Municipality of Pertuis latest distinction, after the «Territoire d’Industrie» designation Coteaux du Girou, Municipality of Flourens, Municipality (in November 2018) and the awarding of the silver label for of Larroque, Municipality of Roquesérière, Municipality of «Territoires Innovants et Interconnectés» (in December 2018). Toulouse, Toulouse Metropolitan Area Overseas communities The TCO asked AFL to cover the funding gap for the grants (32) Réunion (974) expected from the financial provider of the embankment Municipality of Condom Suburban Community of Territoire de la Côte Ouest, construction (the EU) under the new aquatic environments and Municipality of La Possession flood prevention management (GEMAPI) authorization (Rivière Hérault (34) des Galets and Ravine de l’Hermitage), with a bridge loan of €2.5 Municipality of Balaruc-les-Bains, Municipality of Pomérols, Saint-Pierre-et-Miquelon (975) million. Sète agglopôle méditerranée Overseas Community of Saint-Pierre-et-Miquelon Joseph SINIMALE, Lot (46) Polynésie Française (987) Président of the TCO Municipality Community of La Vallée du Lot et du Vignoble Overseas Community of French Polynesia, Municipality of Bora Bora Hautes-Pyrénées (65) Municipality Community of Adour Madiran, Municipality of

BUSINESS OVERVIEW 2018 AFL 23 You are a local authority :

Philippe ROGIER Laurence LEYDIER Astrée BOYET Chief credit officer Director of local authority relations Local authority relations officer 04 81 11 29 32 04 81 11 29 37 04 69 84 81 02 [email protected] [email protected] [email protected]

You are an investor:

Thiebaut JULIN Romain NETTER Maëlien BOREL Chief financial officer Director of Medium and long-term funding Medium and long term funding officer 04 81 11 29 33 04 81 11 29 40 04 69 84 81 01 [email protected] [email protected] [email protected]

www.agence-france-locale.fr

Agence-France-Locale [email protected] @AgenceFRLocale