Report - Bpifrance

Transcription

Report - Bpifrance

2013
BPIFRANCE
Financement
Annual
Report
Reference document
This reference document was filed with the Autorité des Marchés Financiers (Financial Markets Authority), on 23 April 2014,
pursuant to article 212-13 of the AMF General Regulations. It may be used in support of a financial operation if supplemented
by a prospectus approved by the AMF. This document has been drafted by its issuer and gives rise to liability on the part of its
signatories.
CONTENTS
1. MESSAGE FROM THE CHAIRMAN
5
2. KEY FIGURES
2.1. 2013 balance sheet
2.2. Capital and shareholding
6
6
7
3. BOARD OF DIRECTORS MANAGEMENT REPORT FOR THE GENERAL MEETING
3.1. Governance
3.2. Directors’ terms of office
3.3. Activity report
8
8
10
11
4. REPORT FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS
4.1. Conditions for the preparation and organisation of the works of the Board of Directors
4.2. The internal control mechanism
4.3. Development and processing of accounting information
4.4. Statutory auditors’ report on the Chairman’s Report
48
48
51
54
57
5. RESOLUTIONS SUBMITTED TO THE GENERAL MEETING ON 14 MAY 2014
61
6. ORGANISATIONAL CHART OF BPIFRANCE
6.1. Functional organisational chart
6.2. Organisational chart of the network
65
65
66
7. FINANCIAL RESULTS FOR THE PAST 5 FISCAL YEARS
67
8. CONSOLIDATED FINANCIAL STATEMENTS
68
9. INDIVIDUAL FINANCIAL STATEMENTS
155
10. REPORTS FROM THE STATUTORY AUDITORS
10.1. Report on the consolidated financial statements
10.2. Report on the individual financial statements
10.3. Report on the regulated agreements
10.4. Report on the Company’s Social Responsibility Report
204
204
208
212
224
11. GENERAL INFORMATION REGARDING THE ISSUER
11.1. History and development of the issuer
11.2. Company name, registration, incorporation date and term, registered offices
11.3. Legal form, regulatory texts and applicable legislation
229
229
229
230
12. PERSONS RESPONSIBLE FOR THE REFERENCE DOCUMENT AND FOR AUDITS
12.1. Responsible person
12.2. Statutory auditors
231
231
232
13. CORRESPONDENCE TABLE
233
2013 Bpifrance Financement Annual Report
|3
Throughout this first year of its existence, Bpifrance built on its legal, financial and
operational foundation while pursuing the mission entrusted to it for the financing of
companies.
Bpifrance pursued its structuring efforts with zeal: the set-up of various governance
bodies, the validation of the doctrine after its presentation to Parliament, the roll-out in
the regions, the legal and financial organisation are but some of the efforts carried out
in 2013, thanks to the mobilisation and commitment of the teams.
These actions in no way slowed the group’s activities relative to its mission of
financing companies. In a still tense economic context, Bpifrance mobilised all of its
tools in order to play its role as an actor in the marketplace, namely a contra-cyclical
role of financing the economy and impacting on the market’s imperfections.
2013 was marked by a new record for the financing activity with more than €5 billion of new commitments, a 7.9%
increase relative to the previous year. This growth was led by co-financing and even more so by development loans.
As such, the medium / long-term outstandings increased by 20%, to €17.8 billion. Short-term financing via the
mobilisation of receivables experienced double-digit growth (+11%), an indication of both the conquest of new
customers and better usage of the lines. The CICE (Competitiveness and Employment Tax Credit) Pre-financing,
resulting from the National Pact for Growth, Competitiveness and Employment, attained €860 million of agreements
for the benefit of more than 12,000 companies, 60% of which are VSEs.
The guarantee activity, for its part, increased by 5% relative to 2012. The difficulties related to the economic situation
resulted in more pronounced recourse to guarantee funds in order to consolidate the structural or short-term financing
needs of companies.
In 2013, Bpifrance Financement also fully mobilised its assistance and innovation loan tools in the amount of €747
million, that provided for the financing of projects for an amount in the area of €2.1 billion. In addition, Bpifrance put
together an innovation action plan, the “NOVA” plan, based on three key aspects: simplification, support, financing
continuum.
With the creation of the Bpifrance Export label, 2013 was also the year in which the public authorities ratified the
international actions of Bpifrance. This label takes in all of the public support efforts for exports and the
internationalization of companies, distributed by the Bpifrance regional network. On this occasion, the financing
products were simplified.
With the adoption of the 2014-2017 Strategic plan by the Board of directors, Bpifrance now has a clear roadmap for
the coming years. The major challenge for our efforts will be the resumption of corporate investments within our
country.
The Bpifrance teams will be fully and entirely devoted to bringing this about.
Nicolas DUFOURCQ
Chairman and Chief Executive Bpifrance Financement
|5
2. KEY FIGURES
2.1. 2013 balance sheet
2011
(In millions)
ACTIVITY
Innovation aid (AI, ISI, FUI, FIS, PSPC)
Guaranteed Loan
Guaranteed loans provided by Bpifrance
régions
Investment co-financing
CICE (advances)
Short-term financing (advances)
PERSONNEL (1)
(1)
2012
change
2012
2013
change
2013
658
8,826
744
8,500
13.1%
-3.7%
634
8,968
-14.8%
5.5%
534
611
14.4%
768
25.7%
4,164
6,302
1641
4,701
7,001
1641
12.9%
N/A
11.1%
-
5,073
737
7,810
7.9%
N/A
11.6%
Average personnel on permanent contracts, paid as
full-time equivalent on 31 December
600
506
500
Operating
Ratio
57,2%
514
484
481
Operating Ratio
61,8%
400
Operating Ratio
58,6%
300
297
290
Operating
Ratio
62,0%
301
300
Op rev: - 6,5 %
Op prof: -11,7%
200
152
108
100
103
81
76
65
122
91
0
Actual-2012
Actual-2013
Operating revenue
Administrative overhead
Estimated-2013
Cost of risk
Bud-2013*
Operating profit
The contribution of the three activities (financing, guarantee and innovation) to the NBI is indicated in appendix 11
(“sector-specific information”) of the consolidated financial statements.
2.2. Capital and shareholding
On 31 December 2013, the issued capital of the company Bpifrance Financement stood at €750,860,784, divided into
93,857,598 shares each with a nominal value of €8.
The SA BPI-Groupe holds 89.70% of the share capital and 89.73% of the voting rights of the company Bpifrance
Financement. It has the status of a financial company, and is therefore subject to the prudential supervision of the
Autorité de Contrôle Prudentiel et de Résolution (Prudential Control and Resolution Authority).
It is recalled that article 6 of the Bpifrance Financement company articles of association indicates that “the public
limited company BPI-Groupe directly or indirectly holds more than 50% of the company capital”, in keeping with order
n°2005-722 of 29 June 2005 relative to the creation of the EPIC-BPI-Groupe public (former OSEO).
Breakdown of the capital and voting rights on 31 December 2013
Number
Amount (€)
Capital
distribution
Breakdown
voting rights
SA BPI-Groupe
84,191,669
673,533,352
89.70 %
89.73 %
Agence Française de Développement
1,560,631
12,485,048
1.66 %
1.66 %
FONCARIS SA
1,264,502
10,116,016
1 35 %
1.35 %
Banks and miscellaneous
Total
6,840,796
93,857,598
54,726,368
750,860,784
7.29 %
100 %
7.26 %
100 %
of
|7
3.1. Governance
3.1.1. Board of Directors meeting on 31 December 2013
Chairman of the Board
Nicolas DUFOURCQ
1
Chairman and Chief Executive of Bpifrance Financement
The State, represented by
2
François JAMET
Department Head for Companies, Technology Transfer and Regional Action within the Directorate General for
Research and Innovation of the Ministry for Research
3
Sébastien RASPILLER
Deputy Director “Financing of Companies and the Financial Market” of the Directorate General of the Treasury
4
Alain SCHMITT
Head of the SME Competitiveness and Development Department at the Directorate General of Competitiveness,
Industry and Services (DGCIS)
The Representatives of the other shareholders
5
Delphine de CHAISEMARTIN
Financial institutions task officer within the Development, Subsidiaries and Equity interests department of the Caisse
des Dépôts
6
Thomas ESPIARD
In charge of the Venture Capital and Infrastructures Division within the Subsidiaries and Equity Interests Development
Department for the Finance, Strategy, Subsidiaries and International Division of the Caisse des Dépôts
7
Catherine HALBERSTADT
General Manager of the Banque Populaire du Massif Central
8
Marie-Christine LEVET
Associate Director of JAINA Capital
9
Jean-François ROUBAUD
Chairman of the Confédération Générale des PME (CGPME)
10
Sabine SCHIMEL
11
Chief Executive Officer of the company SILIC
1
Appointed by the Board of Directors on 12 July 2013
Designated by order dated 20 July 2013
3
4
5
Appointed by the General Meeting of 12 July 2013
6
Appointed by the General Meeting on 12 July 2013
7
Co-opted on 12 July 2013
8
9
10
Appointed by the General Meeting of 12 July 2013
11
Until January 2014
2
Employee directors
12
Elisabeth HENRY PEREZ
Legal Support Manager within the Litigation Department of Bpifrance Financement
Eric VERKANT
Innovation delegate of the Paris Regional Department of Bpifrance Financement
Non-voting members
Albert BOCLÉ
Sales and marketing director of the Société Générale Retail Bank in France
Hugues FAUVE
Legal Manager Bpifrance Financement Innovation and Financing Management Department
Edouard LEHER
Credit Manager of the Alsace Regional Department of Bpifrance Financement
Bruno METTLING
Assistant General Manager in charge of Human Resources for the ORANGE Group
Vincent MOREAU
Deputy director of the Budget Department’s 3rd Sub-department
Anatole NEF
Task officer within the Financial Institutions Division of the Group Steering Department - Subsidiaries, Strategy and
Equity interests Division of the Caisse des Dépôts
Jean-Luc PETITHUGUENIN
Chairman and Chief Executive of the PAPREC France Group
Pierre PRIEUX
Chairman of ALCEN
Hervé SCHRICKE
Chairman of Xange Private Equity
The Agence Française de Développement (AFD), represented by Anne PAUGAM
Managing Director of the AFD
Government Commissioner
Jean-François GUTHMANN
Head of the Economic and financial control service
13
Olivier BUQUEN
Deputy Government Commissioner
12
13
Elected on 24 September 2013
Since 27 January 2014
|9
3.1.2. General Management
General Manager
Nicolas DUFOURCQ
3.2. Directors’ terms of office
Chairman and Chief Executive
Nicolas DUFOURCQ
Chairman of Bpifrance Investissement
14
Chairman and Chief Executive of Bpifrance Participations and of the EPIC BPI-Groupe
General Manager of the Public Limited Company BPI-Groupe
Director of Euler Hermes
The State, represented by
François JAMET
French State representative director of the SAS France Brevet, of the SATT AxLR and of the Association
professionnelle LES France
Sébastien RASPILLER
French State representative director of the IDES (Institut de Développement de l’Economie Sociale) and of the IFCIC
(Institut pour le Financement du Cinéma et des Industries Culturelles)
Alain SCHMITT
EPIC BPI-Groupe director representing the State
The Representative of the other shareholders
Delphine de CHAISEMARTIN
Director of the Société de Financement Local, of the Banque Postale Collectivités Locales, of the SAS SOFIRED and
of SAS France Brevet
Thomas ESPIARD
Director of CDC Infrastructure, of Qualium investissement, of Bpifrance Investissement (former CDC Entreprises), of
CDC Infra Management, of Innovation Capital and of CDC Elan PME
Catherine HALBERSTADT
General Manager of the Banque Populaire du Massif Central
Member of the Supervisory Board of BPCE
Director of Natixis, of the Crédit Foncier de France (CFF) and of I-BP
Marie-Christine LEVET
Associate Director of JAINA Capital
Director of the ILIAD Company, of the MERCIALYS company and of the Fonds Google pour l’Innovation Numérique
dans la presse (FINP)
14
From 11 June to 12 July 2013
Jean-François ROUBAUD
Chairman of the Confédération Générale des PME (CGPME)
Deputy Chairman of the UEAPME
Member of the Comité d’Orientation de France Investissement, of the Conseil Economique, Social et
Environnemental, of the Comité d’Orientation du Fonds Stratégique d’Investissement, of the Conseil National
Education Economique of the Conseil des Affaires Etrangères
Director of ACL PME, of SA d’HLM Résidences, of ACL PME and of UBIFRANCE
Manager of SODEP and PME Communication
Sabine SCHIMEL
15
Chief Executive Officer of the SA SILIC
Chairman and member of the Supervisory Committee of SAS Carré Blanc & Compagnie
16
Chairman and member of the Supervisory board of SAS Marais Technologies and of SAS Innovation Capital
Director of the SA CDC Entreprises Capital Investissement
Chairman of the SAS Part’Com, of the SAS Univers 12, of the SAS Socomie, of the SAS Foncière Nanteuil, of the
SAS Havane and of the SAS 21/29 Rue Des Fontanots
Director representing Part’Com within the SA IN-COM and the SA Soficapital
Manager of the SARL EPP PERIPARC NAUTILE and of the SARL DU NAUTILE
17
General Manager of Qualium Investissement
Employee directors
Elisabeth HENRY PEREZ
Deputy Chairwoman of the Board of Directors and Director of the Coopérative du CEPME
Eric VERKANT
Supervisory board member of the Centre Francilien de l’Innovation (CFI)
3.3. Activity report
3.3.1. Highlights of 2013
2013 was the year of the creation of the Banque publique d’investissement (BPI - Bank for Public Investment).
In terms of financing-related business lines, 2013 was marked by the roll-out of new financing, pre-financing and
guarantee products.
Set-up of the Bpifrance group
The main steps of the set-up of the Bpifrance group are summarized below:

Law of 31 December 2012 relative to the creation of the Bank for Public Investment (BPI);

21 February 2013: the first board of directors of Bpifrance, meeting in Dijon, appoints its chairman,
Jean-Pierre Jouyet, general manager of the Caisse des Dépôts et Consignations.

21 February 2013: appointment of the Bpifrance executive committee.
15
16
17
Until January 2014
Until 29 October 2013
From March to September 2013
| 11

17 April 2013: the first meeting of the National Orientation Council (French acronym: CNO), in Caen. The task of
the CNO is to give an opinion on the strategic orientations, intervention doctrine and provisions whereby BPIGroupe and its subsidiaries carry out their general interest missions, and on the implementation of the ecological
and energy transition.

15 May 2013: Bpifrance intervention doctrine presented to Parliament. It was then adopted by the Board of
directors on 25 June.

38 meetings of the regional orientation committees organised as of the spring of 2013.

May 2013: launch of the Bpifrance Export label, a new financing and support offer intended for SMEs and mid-tier
companies, in partnership with Coface and UBIFRANCE, in order to make it easier for companies to export and
become more international.

June 2013: signing of a partnership with the European investment Bank (EIB) in order to develop cooperation that
will encourage investment and financing amongst SMEs and mid-tier companies. This agreement took concrete
shape in September, with the release to Bpifrance of a credit line of €750 million by the EIB, and a guarantee
package from the European Investment Fund (EIF). This will make it possible to grant loans to innovative SMEs
for a total of €200 million.

Delivery of authorisations from the Prudential Control and Resolution Authority (28 June 2013) and the Financial
Markets Authority (10 July 2013).

12 July 2013: name change to Bpifrance Financement and set-up of the Bpifrance group by completion of a
process of contributions, whereby:
(a) the State contributed to BPI-Groupe 49% of the share capital and voting rights of Bpifrance Participations and
its equity interest in SOFIRED,
(b) the EPIC BPI-Groupe contributed to the SA BPI-Groupe 62.81% of the share capital and voting rights of
OSEO and,
(c) the Caisse des Dépôts et Consignations notably contributed to SA BPI-Groupe 51% of the share capital and
voting rights of Bpifrance Participations, all of the share capital and voting rights of CDCE-1, 62.81% of the share
capital and voting rights of OSEO as well as additional assets.
After these contributions, the State and the Caisse des Dépôts et Consignations became equal shareholders of
the SA BPI-Groupe, the share capital of which is equal to 20,981,406,140 euros.
After these contributions, BPI-Groupe contributed to Bpifrance Participations the assets received that same day
from the Caisse des Dépôts et Consignations. A description of these contributions is provided in Appendix 2 of
the Bpifrance Participations annual report.

October / November 2013: finalising of the group’s organisation and installation of the teams. The Bpifrance
teams in Paris are located at a single site (6/8 boulevard Haussmann - 75009 Paris), while the central functions
are gathered at the head office in Maisons Alfort.

Preparation of partnership master agreements with the Regions. 2 agreements signed in 2013: Auvergne and
Poitou-Charentes.

November 2013: kick-off of the Nova action plan for innovation financing, with the aim of accelerating the creation
of national champions. Nova is intended to strengthen the intervention possibilities of Bpifrance, to simplify the
assistance tools and systems, to support innovative entrepreneurs and provide continuity between all of the
available types of financing for innovation: innovation aid, innovation loans, collaborative programmes and
investments in own funds.

26 November 2013: signing of the AFIC / Bpifrance best practices charter with shared commitments between
private and public actors in the service of the development of non-listed SMEs and mid-tier companies.

20 December 2013: approval of the first Bpifrance strategic plan by the Board of directors. This proactive plan
gives concrete shape to the group’s strategic ambitions looking ahead to 2017, in keeping with its general interest
missions.
Key events for the “financing” division:
For the “financing” division, 2013 was the year of the roll-out of new financing, pre-financing and guarantee products.
New financing products

Export development loan (PDE): As part of simplifying the support procedures for companies as decided upon
by the State, the EDL was created in order to meet the need to strengthen the financial structure of companies
that are developing internationally. Systematically associated with external financing tools in the same amount,
the EDL results from the merger of 3 pre-existing products: the export loan, the international development
contract and the participatory development contract.

Digital loan, as part of the “Investing in the Future Programme” (PIA). Endowed with €300 million, this
guaranteed loan, systematically associated with external financing in the same amount, will finance the
investments of SMEs and mid-tier companies involved in structuring projects for the integration of digital solutions.

Loan for the industrialization of competitiveness clusters (PIPC): set up in late 2013 as part of the “Investing
in the Future” Programme, this loan finances the downstream expenses of a collaborative R&D project, intended
to result in the marketing of an innovative product, process or service. It therefore improves the financing of the
industrialization and marketing phase for new products or services developed by companies, as part of
collaborative projects within competitiveness clusters.
Deployment of the measures related to the national growth, competitiveness and employment pact

Pre-financing of the Competitiveness and Employment Tax Credit (CICE), in the form of direct pre-financing
and of a guarantee system encouraging the pre-financing and deployment of a specific offer for VSEs.

SME cash position recovery fund: €500 million of short-term credit facilities for the benefit of VSEs and SMEs.
Transfer of all assets and liabilities of the OSEO Industrie subsidiary
OSEO Industrie was the bank – a 100% subsidiary of Bpifrance Financement – created in April 2012 as a result of the
State’s desire to have a tool dedicated to the financing of industry. In view of the creation of the Public Investment
Bank (Banque Publique d’Investissement or BPI), and for the purposes of simplifying and increasing the visibility of
the shareholding of the future Bpifrance group, it was considered appropriate to transfer the activity of OSEO Industrie
to its parent company, Bpifrance Financement.
In this context, on 26 June 2013, the company’s Board of Directors authorised, in compliance with article 12.3 of the
articles of association, the dissolution without liquidation of OSEO Industrie by transfer of all assets and liabilities to
the sole shareholder Bpifrance Financement.
Capital reorganisation of Bpifrance régions
As part of the contribution operations for Bpifrance carried out on 12 July 2013, the Caisse des Dépôts transferred its
equity interest in Bpifrance régions, i.e. 46.5% of the capital, to the SA BPI-Groupe in order to simplify the
shareholding of the Bpifrance group.
To complete this simplification, the SA BPI-Groupe contributed its new equity interest in Bpifrance régions to
Bpifrance Financement. As such, as of 20 December 2013, Bpifrance Financement has held 99% of the capital of
Bpifrance Régions. The remainder of the capital (1%) has been retained by the initial shareholders (regional
authorities, CMGM and directors).
| 13
3.3.2. The missions and business lines
Bpifrance Financement is active in three main business lines that have a common objective of working with
entrepreneurs during the riskiest phases of their projects, from the company’s creation through to its transfer / buyout, and including its innovation and international expansion:

innovation support, support and financing for innovative projects with a technological component, and that have
concrete prospects of completion,

investment and operational cycle financing alongside banking institutions,

bank financing guarantees and the involvement of equity investors.
Bpifrance Financement has pooled all of its know-how, while combining the various financing techniques in order to
design solutions in response to shortcomings in the market. This applies to the financing of the seed-stage, to the
bank financing of innovation (mezzanine loans and mobilisation of the Tax Research Credit (CIR) for mid-tier
companies), over and above any assistance, as well as bringing innovative SMEs into contact with key accounts or
equity investors.
Its efforts are characterized by its ability to have a ripple effect amongst the private actors in the financing of SMEs
and innovation, while optimising the leverage provided by public resources.
Bpifrance Financement networks with all of the public and private actors who are working to support the development
of SMEs and innovation.
Bpifrance Financement has signed a partnership agreement with local authorities, first and foremost, the Regional
Councils.
Bpifrance Financement “networks” with:

banking and financial establishments, as well as equity investors,

competitiveness clusters, research institutions, universities, engineering institutes, major companies,

business incubators and breeding grounds,

chambers of commerce, industry and skilled trades,

chartered accountants,

federations and professional trade unions,

associations involved in company creation assistance and support networks,

public and private actors working to distribute information technology within SMEs,

European structural funds and Community research programmes.
The financing of investments and of the operating cycle
In partnership with banking and financial establishments, Bpifrance Financement contributes to investment financing:

for tangible or intangible capital assets provided in the form of medium or long-term loans and real estate or
equipment financial leasing operations, as well as financial rentals,

for immaterial investments, as well as the financing of working capital requirements, in the form of Development
Loans (Growth, Export, Transfer / buy-out, Innovation), long and patient, without guarantee or surety taken on the
company or its directors.
Specific financing tools in partnership with the Regions and the Commissioner General for Investment were
developed in order to encourage investment during the most critical high-potential phases: export, digital,
revitalization… Finally, the business start-up loan (PCE) has been providing support for creation since 2000.
Bpifrance Financement contributes to financing the operating cycle:

it finances the cash needs of small and medium-sized enterprises that are customers of large public and private
principals, and for financed contracts, it provides signature commitments: sureties and first demand guarantees.

for the first time in 2013, Bpifrance pre-financed the Competitiveness and Employment Tax Credit (CICE)
Guarantee
Bpifrance Financement provides guarantees for bank financing (including leasing and financial leases), and for
interventions by equity investors:

with regard to creation. The interest-free loans granted to creators by company creation support networks are also
eligible,

with regard to innovation,

with regard to development,

with regard to transfers / buy-outs

with regard to international actions, including bank sureties on the export markets and the risk of failure for French
subsidiaries established abroad (GPI).
In 2013, Bpifrance set up a guarantee fund intended to strengthen the cash positions of companies, whereby their
bank consolidates their short-term outstandings in a new medium-term loan.
The quota is between 40 and 60%. It can be up to 70% with the assistance of the guarantee fund established by the
regions with Bpifrance Financement.
Innovation support
The mission of the Bpifrance Innovation’s Financing branch is to provide a response to the financing needs of
innovative individual or collaborative projects, from the idea through to the market phase, in case of any failure with
regard to classical financing tools. Bpifrance Innovation provides a financing solution that is suited to the company on
the basis of its distance from the market (subsidy, repayable advance, guaranteed loan,…), in close partnership with
the Regions.
The innovation financing of the activities of companies are divided into 2 main categories:

individual assistance (in the form of subsidies, repayable advances and zero rate loans) and loans (Start-up
equity loan, CIR Pre-financing, Industrialization loan, etc.), provided by the Bpifrance network established
throughout the country.

and the financing of collaborative projects (FUI, ISI, PSPC) carried out by the Bpifrance head office in Paris, in
the form of subsidies and repayable advances.
Thanks to the means provided both by the State and by its partners, in 2013, Bpifrance made full use of the
assistance tools and loans in the amount of €747 million, thereby providing the financing for projects equalling €2.1
billion.
In terms of individual and collaborative assistance, the agreements amounted to €634 million. The objectives were
exceeded in terms of individual assistance (€364 million), whereas the collaborative programmes proved to be more
difficult to implement (€270 million).
| 15
Bpifrance Innovation also put together a cross-functional action plan for innovation called “NOVA”. As such, in
2013, the innovation teams were mobilised around 3 priorities:

Simplification: increasing the offer’s legibility and the processing speed for the entrepreneur customer

Support: Highlighting Bpifrance’s support role, and in particular that of the case officers

Financing continuum: providing a response to all of the entrepreneur’s financing needs, at every development
stage (investment, innovation financing)
With regard to NOVA’s simplification axis, a new simplified and dynamic presentation of the offer was prepared. It
is based on the company’s need and is focused on a “customer journey” that highlights the financing solutions on the
basis of the maturity of the company and of its project.
The simplification of the collaborative programmes also notably began with the ISI and PSPC merger in 2014 and an
acceleration of the set-up of assistance tools (maximum 6 months) after receipt of the complete file.
Moreover, for simplification purposes, the management of the FSN SAR programme (support for major collaborative
projects in the digital field), previously managed by the Caisse des Dépôts, has now been taken over by Bpifrance,
given its consistency with the assignments entrusted to it.
With regard to the actions targeting better support for financed companies, Bpifrance is a major player in the French
Tech initiative launched by F. Pellerin in November 2013, as the operator of the French Tech Accélération but also
as a contributor to the project’s creation and implementation since its start.
Last November, Bpifrance also opened a start-up area in its offices in order to directly accommodate customer
companies of Bpifrance and, together with UBIFRANCE, it launched an accelerator in San Francisco, Ubi I/O, in
order to help high-potential innovative companies to establish themselves in the United States.
Finally, the Bpifrance network teams previously dedicated to financing, began to receive training in order to be able
to better orient customer companies in search of own funds.
In terms of financing continuum, Bpifrance sought to complete its range of loans for companies in the seed-stage and
growth phases in order to better respond to the market’s needs, with two new loans in response to the specific needs
of innovative companies, that are available as of 2014. Also, the Loan for the Industrialization of Competitiveness
Clusters (PIPC) was set up in late 2013 as part of the “Investing in the Future” Programme (PIA), in order to finance
the downstream expenses of collaborative R&D projects.
Bpifrance is also the operator of the Worldwide Innovation Contest (Innovation 2030) intended to assist the
emergence of the leading companies of tomorrow, through major high-potential innovations in the 7 areas identified
by the commission.
Finally, Bpifrance defined a strategy regarding non-technological innovation in order to implement, in 2014, tools,
guidelines and training within its network in order to be able to support the relevant projects as well as possible.
3.3.3. The activity by business line and key figures
Innovation activity

Subsidies / advances / loans distribution
(in millions of €)
2013
Individual aids
395
364
. Grants
90
85
of which partners
42%
42%
. Repayable Advances
123
127
24%
26%
. Zero rate loans
182
152
Development loans
18
113
. Participatory Seeding Loans
18
19
of which partners

2012
. CIR pre-financing
36
. Innovation loans
58
Financing of collaborative projects
349
270
. FUI (grants)
122
104
. ISI (Strategic Industrial Innovation)
109
92
of which grants
41%
29%
of which repayable advances
59%
71%
. PSPC (Structuring R&D Projects for Competitiveness)
82
54
of which subsidies
56%
46%
of which repayable advances
44%
54%
. FIS (grants)
36
20
Distribution of the beneficiary companies by major sectors (excluding ISI)
2013
Industry
Life sciences
IT
Other
47.65 %
20.43 %
31.05 %
0.86 %
Comments on the evolution of the activity
Thanks to the means provided both by the State and by its partners, in 2013, Bpifrance made full use of the
assistance tools and loans in the amount of €747 million (-2% relative to 2012), thereby providing the financing for
projects equalling €2 billion.
| 17
In terms of individual and collaborative assistance, the agreements amounted to €634 million. The objectives were
exceeded in terms of individual assistance (€364 million), whereas collaborative programmes proved to be more
difficult to implement (€270 million).
A new loan, the Innovation Loan, was rolled out in 2013 (€58 million). The kick-off of the new subsidized rate
Innovation Loan in 2014 is intended to revive the activity of innovation loans, that is somewhat below the stated
objective.
The slowdown of the PSPC programme (-35%) can be explained by the complexity of the procedures, that are being
simplified.
Overall, the collaborative assistance tools dropped by 20%, while individual assistance dropped by 8%, whereas
loans multiplied by a factor of 6.
2014 should see an overall recovery of the activity, with budgeted growth of 25%, notably for individual assistance.
Guarantee Activity

Key figures
2012
2013
Amount of guaranteed loans
Creation
Transfer / buy-out
Development
Innovation
International
Strengthening of permanent capital
8,465
2,580
1,557
2,920
510
588
310
8,925
2,482
1,539
2,928
403
472
1,102
Change as a
%
5.4%
-3.8%
-1.1%
0.3%
-21.0%
-19.8%
255.1%
Distribution by type of guarantee intervention
Bank loans
Own funds
Short-term
8,465
7,565
278
621
8,925
7,948
263
715
5.4%
5.1%
-5.6%
15.1%
Number of guaranteed loans
83,805
86,049
2.7%
Net amount of covered risks
4,157
4,394
5.7%
Total risk outstandings on 31 December (sound)
12,226
12,719
4.0%
ACTIVITY (excluding overall line)
Distribution of guaranteed loans by purpose
2013
Creation
Transfer / buy-out
Development
Innovation
International
Cash
27.8%
17.2%
32.8%
4.5%
5.3%
12.3%
Total
100%
Distribution of guaranteed loans by business sector (excluding Recovery plan mechanism)
2013
25.4%
9.2%
27.9%
10.9%
15.2%
11.4%
Industry
Construction
Trade – Transportation
Services for companies
Services for individuals
Tourism
The guarantee activity increased by 5% if compared to 2012.
It is down by 4% for the purposes excluding support for the cash position, for which the overall share tripled to 12% of
the global activity in 2013, thereby underscoring the tension within the economic environment.
Another indicator of this tension is the weakening scene with the creation and transfer / buy-out purposes, though the
development purpose remained stable.
The distribution of the financing by activity sector also confirms this trend, with the share of Industry declining from
30% in 2012 to 25% in 2013, while the trade-transport sector became the leading activities supported in 2013.

Key figures of Bpifrance Régions
Activity (in € millions)
2012
2013
Change as a %
Amount of guaranteed loans
Creation
Transfer / buy-out
Development
Cash
611
154
252
121
83
768
153
293
151
170
25.8%
-0.8%
16.3%
25.0%
105.1%
Distribution by type of guarantee intervention
Bank loans
Own funds
611
610
1
768
766
3
25.8%
25.5%
ns
Number of guaranteed loans
2,117
2,657
25.5%
Net amount of covered risks
181
224
23.6%
Total risk outstandings on 31 December
560
604
7.9%
| 19
Breakdown of guaranteed loans by business sector
2013
Industry
Construction
Tourism
29.9%
9.7%
22.7%
12.5%
16.4%
8.9%
Financing activity

Distribution by financing type
(in € millions)
2012
2013
2013 change
ACTIVITY
Financing
New production
4,701
5,073
7.9%
Outstandings as at 31 December (1)
15,358
17,842
16.2%
Medium and Long-Term Co-financing
3,486
3,697
6.0%
Long and medium-term loans
2,128
2,413
13.4%
Finance lease
1,358
1,284
-5.5%
Development loans (2)
1,215
1,376
13.3%
725
791
9.0%
70
63
-9.9%
2,944
3,244
10.2%
-
795
Of which Growth loan
Of which the PCE, or business start-up loan
Short term
Mobilisation of Receivables
Pre-financing of the CICE
ns
Breakdown of assistance excluding PCE by business sector
2013
Industry
Construction
Tourism
25.4%
5.1%
27.7%
11.2%
23.9%
6.6%
Breakdown of loans by business sector, excluding business start-up loans (PCE)
2013
Industry
Construction
Tourism
5.6%
21.7%
31.0%
11.2%
18.6%
11.8%
2013 was marked by a new record with more than €5 billion of new commitments, a 7.9% increase when compared to
the previous year. This growth was driven by co-financing and even more so by development loans, that now
represent more than a quarter of the new production. As such, the medium / long-term outstandings increased by
20%, to €17.8 billion.
The medium / long-term co-financing reached an activity volume, unseen in the past, of €3.7 billion (+6%), with a
strong increase in the Energy-Environment field, thereby confirming Bpifrance’s counter-cyclical market role.
Development Loans increased by 13% to €1.4 billion in commitments, thanks to the strong dynamics of the Growth
Loan (known as “CDP”; €790 million) despite the discontinuation of the Green Loan, and to international initiatives
such as the Export Loan, as well as, to a lesser degree, innovation initiatives such as the Innovation Loan, launched
at the start of this year, or the Pre-financing of the CIR. The only downside of this approach, where all products are on
the rise, is the PCE that continues to drop by almost 10% each year, despite the strong buoyancy of the business
creation trend.
In 2013, short-term financing via the mobilisation of receivables experienced double-digit growth (+11%), an indication
of both the taking on of new customers and better usage of the lines.
The CICE Pre-financing, a product created in early 2013 as part of the National Pact for Growth, Competitiveness and
Employment, reached €860 million in agreements for the benefit of more than 12,000 companies, 60% of which are
VSEs.
International Focus
2013 was the year in which public authorities ratified the international actions of Bpifrance.
The State decided to simplify and therefore democratize export public support procedures, in order to make them
more accessible and understandable for companies.
As a result, on 22 May 2013, the Bpifrance Export label was created. This label draws together all the public support
mechanisms targeting exports and the internationalization of companies, and is provided by the Bpifrance Regional
Network. This is excellent recognition for our group that is now assuming a clearly central position within this vital
market for the growth of our customers, which means that the Bank is one of the very rare institutions in the world to
provide financing, insurance and international support all under one roof. On this occasion, the financing products
were simplified.
In order to provide the best possible service to entrepreneurs, the network has already welcomed 25 (40 by March
2014) Ubifrance employees and 22 Coface employees who, working closely with the Bpifrance’s business/project
managers, contribute their respective skills in the areas of international support and insurance for export contracts
and actions. Their integration into the regional teams was remarkable.
| 21
The initial results by 31 December 2013 speak for themselves: out of meetings with 420 companies, 260, i.e. two
thirds, gave their approval for a long-term support project, 91 of them have already initiated their recommended action
plan, and the number of companies receiving financing or specific guarantees relative to their international
development increased by more than 20%.
In partnership with Ubifrance in the relevant countries, Bpifrance also simultaneously organised 2 thematic missions
for the benefit of some 40 of the bank’s entrepreneur customers, i.e. technological “gems” in their domains, notably
ICTs in South Korea and cleantechs in China. These two transactions received a strong satisfaction rate from
companies, several of which experienced commercial successes in their wake.
Technical assistance, that is now provided by the Strategy Department, also experienced interesting results, with the
Tunisian, Russian and Egyptian markets being covered in a manner satisfactory to our customers, with new
possibilities coming to light in 2014.
3.3.4. The structure and financial management of Bpifrance Financement
The financial markets in 2013
2013 was marked by a weak economic recovery around the world. The rhythm of this renewed growth was very
different according to the countries. Central banks were therefore confronted with challenges of different types.
In the United States, the FED was able to prepare the markets for the slowdown of its support for the economy,
whereas in Europe, the ECB continued to relax its monetary policy by lowering its key interest rate to 0.25% at the
end of the year. Thanks to this very accommodating monetary policy, the Euro zone long-term rates fell to very low
levels. As such, the rate of return of the 10-year OAT fell to an historical low point of 1.67% on 2 May of this year.
However, this period coincided with the first announcement of the FED’s slowing quantitative support. The long-term
rates then began a spectacular rebound, with the rate of return of the 10-year OAT increasing by 72 bp increase in
two months, finishing at 2.50% on 31 December, meaning an increase of 52 bp during the fiscal year. In this context,
the spread between France and Germany remained stable over the course of the year. We also note a tightening up
the spreads within the euro zone, notably due to the improvement of the situation of the countries on the zone’s
periphery.
Bpifrance, that enjoys the same rating as the French State, thanks to the guarantee from the EPIC BPI-Groupe,
carried out bond issues for a total of €3.8 billion, and notably a 10-year loan at OAT +15. This spread is the tightest
that has been seen since the resumption of issues on the bond markets in 2011, as part of an EMTN programme. The
total outstandings of the loans issued as part of this programme was close to €8 billion by the end of 2013.
The financial structure of Bpifrance Financement
The consolidated balance sheet total of Bpifrance Financement was equal to €34.7 billion on 31 December 2013,
versus €29.9 billion on 31 December 2012, meaning an increase of €4.8 billion. This annual growth is comparable
with the previous year’s growth rate (16%). It is a reflection of the strong growth of the activity, since the outstandings
of loans to companies are up by €3.6 billion (+18%) and, to a lesser degree, of an improvement of the financial assets
(+14%, i.e. + €0.9 billion).
Unlike the previous year, that had seen a significant change in the composition of the assets represented in the
guarantee funds, the balance sheet structure changed only slightly: clientele loans (of which 80% loans to companies
and 20% deposits with the Public Treasury) represent 71% of the total assets and financial assets 19%.
Loans to companies were equal to €19.7 billion on 31 December 2013, versus €16.1 billion on 31 December 2012.
The various outstandings have evolved in the following manner:

like the previous year, property leasing (+11%) and equipment leasing (+7%) increased at a slower pace than
medium and long-term loans (+20%),

with an increase of 11% in 2013 after +13% in 2012, development loans now represent 19% of the outstanding
loans to companies,

short-term credit facilities more than doubled (+110%), notably with the set-up of the CICE.
The off-balance sheet commitments for the clientele as part of financing agreements remained virtually stable: €4.8
billion on 31 December 2013, versus €4.7 billion on 31 December 2012. The commitments relating to guarantee
agreements showed a very slight decline, from €12.1 billion on 31 December 2012 to €11.8 billion on 31 December
2013.
The total amount of financial assets on 31 December 2013 was equal to €7,293 million, an increase of €886 million
relative to the end of December 2012. It is now 90% made up of the portfolio established as part of the loan activity.
This portfolio is made up in the following manner:

€6,634 million of securities intended to be held until maturity, corresponding with €5.9 billion of OATs purchased
as part of the management of the rate position associated with the refinancing of the credit activity and, for the
balance, with the investment of the Bpifrance régions guarantee funds.

€191 million of marketable securities: these are securities purchased in order to invest the cash either of the
company or of the guarantee funds that it manages (€166 million) and, for the remainder, securities held by the
group’s consolidated structures that are in charge of the venture capital activity (€25 million).

€28 million of equity securities, a significantly higher amount than the previous year, notably as a result of the
transfer to Bpifrance Financement of the CDC’s equity interest in SOGAMA

€367 million recognised on the asset side due to exchange swap operations with a positive valuation; the ones
with a negative valuation are listed in the liabilities, in the amount of €432 million.

€73 million of assets recognised at fair value through profit or loss, that are not linked to a market activity on own
account, but rather to the performance of a venture capital activity through venture capital mutual funds.
On 31 December 2013, the distribution of the medium and long-term financing for the Bpifrance Financement loans to
customers (€15.3 billion of outstandings) was the following (figures from the Financial Operations Department):

€8 billion in the form of securities issued on the bond market, i.e. 53%,

€5.1 billion in the form of contractual loans with financial institutions that have resources coming from passbook
deposits, i.e. 33%,

€1.3 billion in the form of loans through EPIC BPI-Groupe, notably as part of the “Investing in the Future”
programme, i.e. 9%.

€0.8 billion in the form of bilateral loans with international financial institutions, i.e. 5%,
The resources backed by the guarantee activity carried out by Bpifrance Financement and Bpifrance were equal to
€5.4 billion on 31 December 2013, versus €5.2 billion on 31 December 2012, meaning a slight decline (3%), notably
due to allocations still being paid at the end of the year.
In the absence of capital operations and of significant changes to the unrealised earnings in 2013, the €36 million
increase of the Bpifrance Financement shareholders equity between 31 December 2012 (€2,695 million) and
31 December 2013 (€2,732 million) is primarily due to the results for the financial year.
| 23
The financial management of Bpifrance Financement
The objective of the group’s financial management is to provide it with the long-term financial means needed to carry
out the issues entrusted to it by public authorities, while continuing to exercise total control over the risk exposure
inherent to operations within capital markets. To minimise its exposure to this type of risk that is outside of its core
business line, Bpifrance Financement is not involved in any trading or financial intermediation activity.

Financing activity
The refinancing of loans to customers by backing, in both equity and rate terms, the outstandings of loans and real
estate operations. To this end, refinancing operations are completed by rate hedging operations that are performed
either through recourse to financial instruments, or by setting up portfolios of assets specifically dedicated for this
purpose. Under these conditions, the establishment strives to limit the risks that are inherent to the financial
operations, while targeting optimisation relative to market conditions. In this regard, it has adopted the objective of
having a liquidity advance that would allow it to deal with any temporary deterioration of the market conditions.
In 2013, Bpifrance Financement continued the ramp-up of its issue programme for debt securities (Euro Medium
Term Notes) that made it possible to turn to the market under very flexible conditions, through public or private
operations that fall within the scope of a pre-established legal framework.
As such, the outstandings of the bond resources increased by 98%, with total issues over the year being equal to €3.8
billion:

€750 million in February with a duration of 12.5 years, as part of a public issue, completed in March by private
investments of €425 million from the same origin,

€1,000,000,000 in March with a duration of 2 years, as part of a public issue,

€800 million in December with a duration of 10.5 years, as part of a public issue,

€825 million in February, September and October as part of various private investments.
In view of the increased needs due to the development of the loan activity, the ceiling of this programme guaranteed
by the EPIC BPI-Groupe was increased from €8 billion to €20 billion at year-end.
In 2013, the medium and long-term financing of the co-financing activity was completed by a €50 million loan for a
duration of 9 years, from the Council of Europe Bank. Also, in September, the European Investment Bank provided
Bpifrance Financement with a €750 million loan that will be used to finance innovation in 2014 and 2015.
The EMTN programme therefore represented virtually all of the Bpifrance Financement medium and long-term
refinancing in 2013. The structure of this refinancing is the following to 31 December 2013: the bond market now
represents 53% of the outstandings; the Caisse des Dépôts, 25%; banks, 14%, and the State, 8%. (Data from the
Financial Operations Department)
The short-term interbank refinancing outstandings (negotiable debt instruments and securities sold on repo) were
equal to €5.7 billion on 31 December 2013, versus €4.9 billion on 31 December 2012, i.e. an increase of 15%, but
lower than was the case with loans to companies (+18%). This increase is notably due to the development of repo
operations on French State securities purchased as part of operations to hedge the rate position. As such, these
operations were equal to €4,272 million on 31 December 2013, versus €3,623 million on 31 December 2012. For its
part, the outstanding negotiable debt instruments to 31 December 2013 were equal to €1,396 million, an increase of
8% relative to the outstandings on 31 December 2012. In 2013, Bpifrance Financement issued a total amount of €5.8
billion of deposit certificates, of which 74% at under 3 months, 14% at under 6 months and 12% at 6 months or more.
The refinancing operations through the European Central Bank were equal to €1,190 million on 31 December 2013, a
significant increase relative to the end of the last fiscal year (+€690 million).
The overall amount of the Bpifrance Financement securities portfolio attached to the “Financing” activity for the
management of the rate position and cash investment stood at €6,335 million on 31 December 2013. It consists
primarily of OATs (€5,904 million euros, i.e. 93%) and also includes bonds issued by public agencies (€226 million) or
large European commercial banks (€83 million), as well as “covered bonds” (€62 million). Cash investments consisted
of purchases of deposit certificates, generally at under 3 months, issued by banks having a short-term rating of P1, for
an overall amount over the course of the year of €438 million, and outstandings of €60 million on 31 December 2013.
We note that, overall, Bpifrance Financement remains therefore alert to the high credit standing of its counterparties.

Guarantee Activity
The “Guarantee” activity at domestic level is shown in the Bpifrance Financement balance sheet, and at regional
level, in that of Bpifrance Régions.
On 31 December 2013, the overall amount of the financial assets representing the “Guarantee Funds” of Bpifrance
Financement and Bpifrance Régions amounted to €4,496 million, an increase of €265 million when compared to the
end of December 2012. The bulk of these assets now consist of term deposits with the Agence France Trésor (€3,726
million) for which maturities have been adjusted on a half-yearly basis to match the forecasted activation of the
guarantees. The remaining assets are invested in bonds issued by agencies or large banks (€422 million), and in
negotiable debt securities (€220 million). The purchases of deposit certificates, primarily for a duration of under 3
months, were equal to €448 million in 2013; they involved shares issued by banks having a short-term rating of P1
and, for the remainder, they were completed by a few acquisitions of medium term notes (NMTN).
3.3.5. Risk factors
Credit risks
Bpifrance Financement is exposed to the credit risk of customers to which it has provided a guarantee or a loan. Its
outstandings primarily involve French Small and Medium-Sized Enterprises (SME). The large number of small
exposures to many SMEs nevertheless allows for statistical management of the possible losses that makes it possible
to more easily hedge the risk cost through appropriate remuneration.
The credit risk indicators presented below (exposure, concentration, quality) are drawn from the appendices to the
consolidated financial statements prepared using the IFRS reference base.

Maximum credit risk exposure
The maximum credit risk exposure of Bpifrance Financement was equal to €47,929.6 million on 31 December 2013,
versus €43,170.8 million on 31 December 2012.
This maximum credit risk exposure pertained to:

the credit activities for €40,176.7 million at the end of 2013 versus €36,369.6 million at the end of 2012,

the financial activities for €7,752.9 million at the end of 2013 versus €6,801.2 million at the end of 2012.
The maximum credit risk contributions are the following:

PLMT outstandings (Long and Medium-Term Loans): €11,972.1 million at the end of 2013 versus €9,849.7 million
at the end of 2012,

CBI outstandings (Real Estate Leasing): €3,740.0 million at the end of 2013 versus €3,380.4 million at the end of
2012,

CBM outstandings (Equipment Leasing): €1,549.1 million at the end of 2013 versus €1,441.4 million at the end of
2012,

FCT outstandings (Short-term financing): €1,899.8 million at the end of 2013 versus €900.2 million at the end of
2012, in addition to €2,301.4 million of commitments given.
The commitments given pursuant to the guarantee amounted to €11.4 billion at the end of 2013.

Concentration of the credit risks
| 25
The risks with credit operations are currently concentrated on business sectors, i.e. services, industry and trade. As
such, at the end of 2013, these sectors respectively represented 52%, 23% and 14% of the credit operation risks.
The Bpifrance Financement counterparties linked to operations generating credit and counterparty risks in the
balance sheet were primarily companies (€19,027.9 million at the end of 2013), central government agencies
(€11,268.4 million at the end of 2013) and lending institutions (€1,314 million at the end of 2013).

Quality of the credit risk
The outstandings of Bpifrance Financement loans and receivables (interbank loans, PLMT, FCT, other, CBI and
CBM) consisted of sound outstandings in the amount of €23,811.7 million at the end of 2013, versus €20,315.9 million
at the end of 2012.
Individually depreciated assets represented outstandings net of depreciation in the amount of €117.0 million at the
end of 2013, of which €60.5 million relative to “services”, €31.4 million involving the “industry” business sector, and
€17.5 million relative to “trade”.
Detailed information relative to the credit risk is provided in note 8 of the appendix to the consolidated financial
statements.
The financial activity risks

The counterparty risk on financial assets
The counterparty risk on financial assets takes in the risk relative to interbank transactions and to securities
transactions on the financial markets. The other securities transactions not falling into this perimeter (securities used
for the portfolio activity and equity securities) are mentioned in Note 8.4 to the consolidated financial statements.
According to this definition, the counterparty risk stood at €7,260 million on 31 December 2013, versus €6,168 million
on 31 December 2012. This increase of €1.1 billion is primarily due to the ramp-up of the recruiting programme for
bond resources (EMTN) in 2013, since a significant part of the fixed rate loans carried out within this framework have
been the subject of rate hedging in the form of purchases of OATs with the same duration as the loans in question.
Counterparty risks on 31/12/13
(in € millions)
Counterparty category
Financial
assets at fair
value through
profit or loss
Non-current
assets
available for
sale
Loans and
receivables to
lending
institutions
Held-tomaturity
financial
assets
Total
Central government agencies
Lending institutions
Companies
0.0
0.0
0.0
104.8
60.9
0.0
0.0
460.0
0.0
6,217.2
409.6
7,3
6,321.9
930.5
7.2
Total counterparty risks
0.0
2,0
165.7
25.2
460.0
6,634.1
7,259.7
27.2
71.0
27.9
72.9
218.8
Securities used for portfolio activity
Investment securities
Total financial income
Distribution
87.1%
12.8%
0.1%
98.9
460.0
6,634.1
7,385.8
Given their nature and duration, the financial operations undertaken by Bpifrance Financement within this framework
are almost exclusively carried out with government agencies (87%), primarily the French State, and lending
institutions (13%). The few other counterparties are French public corporations.
In view of the public nature of most of the managed funds, the emphasis is on the search for the greatest possible
security of the transactions:

the authorised counterparties have at least a rating of “A” as provided by specialised agencies,

transactions involving derivative instruments are systematically the subject of collateral agreements,

cash transactions are governed by strict duration rules.
The result of this policy is that 91% of the outstandings consist of operations with counterparties rated Aaa and Aa1
(cf. Breakdown table of the other sound assets by accounting category, in note 8 of the appendices to the
consolidated financial statements).
The other financial assets, that are not considered to be counterparty risks, almost all relate to the venture capital
activity, involving either directly consolidated companies (€27 million), or indirectly consolidated ones through UCITS
units (€75 million). The balance of the securities (€24 million) consists of the other equity interests of Bpifrance
Financement.

The counterparty risk on derivative instruments
Since transactions using derivative instruments are systematically covered by collateral, their residual risk is
measured on the basis of a fraction of the notional rather than their value in the balance sheet; it is added to the
counterparty risks on financial assets in order to measure the overall risk per counterparty.
The overall counterparty risk is managed by means of a limit system based on the ratings assigned to each
counterparty by specialised agencies. Counterparties are grouped into 8 categories, each of which has an associated
limit for commitment amounts, calculated from an internal model, as well as a commitment duration limit relating to the
future probability of default.

The financial risks
The market risk
The market risk includes the risk of losses due to changing prices for market products, volatility and correlations.
The liquidity of the assets is a fundamental component of the market risk. In case of insufficient or non-existent
liquidity (for example after a decrease in the number of transactions or imbalance in the supply and demand involving
certain assets), it may not be possible to sell a financial instrument or other disposable asset at its real or estimated
value.
The liquidity risk
The liquidity risk consists of the risk that Bpifrance Financement may not be able to meet its obligations when they fall
due.
The liquidity risk is monitored as part of a liquidity risk management policy validated by the Financial Committee. This
policy is based on management principles defined in order to apply to the current situation, on the basis of
maintaining a permanent liquidity advance intended to deal with possible difficulties accessing market liquidity. The
liquidity situation of Bpifrance Financement is assessed on the basis of internal standards, alarm indicators and
regulatory ratios.
Overall, the establishment measures its medium and long-term financing needs on the basis of the schedule of
operations, new business hypotheses and outflow agreements for the transactions without maturities.
On these bases, the financing stalemate is projected, which is expressed as stocks and flows.
| 27
As on 31 December 2013, the liquidity ratio undergoing validation as part of the Basel III (LCR) regulations was
estimated at 575 % (ALM file), which indicates a very satisfactory level of cash relative to the short-term maturities.
Interest rate risk
The interest rate risk consists of the risk that Bpifrance Financement may suffer losses caused by an unfavourable
change to the interest rates, notably in case of an imbalance between the interest rates generated by its assets and
the interest rates owed on its liabilities.
The management of the Bpifrance Financement rate risk relative to the “Financing” business line is intended to
minimise the impact of fluctuations of market interest rates on the net interest margin, both in terms of the short-term
impact on the NBI (revenue risk) and of the present value of the future cashflows (price risk).
Globally managed pursuant to regulation 90-15 of the Banking and Financial Regulation Committee, the exposure of
Bpifrance Financement to revenue and price risks was lower than the authorised limits on 31 December 2013:

A 1% increase of the money market rates over the next 12 months would have a negative impact evaluated at €6
million on the establishment’s net banking income.

A -1% translation across the yield curve would result in a latent income reduction estimated at -€25.1 million.
The exchange risk
The exchange risk consists of the risk that Bpifrance Financement might suffer losses on the capital borrowed or
loaned in currencies other than the euro. Bpifrance Financement can be exposed to risks related to fluctuating
exchange rates between the various currencies.
Bpifrance Financement carries out very few foreign currency operations, and these operations are hedged in order to
reduce the possible risks. Their potential impact on the profit and loss statement is negligible.
The risk related to the equity interests of Bpifrance Financement in the own funds of small and medium-sized companies
As part of its financing activity, Bpifrance Financement is exposed to the risk of losses related to its direct or indirect
investments in the own funds of small and medium-sized companies.
On 31 December 2013, the exposure to this risk was equal to €27 million through the group’s consolidated
subsidiaries, and €75 million through UCITS units.
The other risks

Operational risks (including legal, accounting, environmental, compliance and reputation)
The operational risks include the risks of losses due to faulty procedures and internal systems, human error or
external events, whether accidental or not. The internal procedures notably include the human resources and
information systems. The external events include but are not limited to floods, fires, earthquakes, fraud and even
terrorist attacks.
The operational risks include the risk of government, legal or arbitration procedures or penalties. On the date of the
present reference document, Bpifrance Financement is not aware of any government, legal or arbitration procedure
that is having or has recently had significant effects on its financial situation or profitability.

The risks with placed insurance policies
In the amount of €200 million, all risks taken together, the insurance policies primarily cover the risks related to the
Bpifrance group’s real estate assets, including specific risks (100-year flood risk) and the risks related to the security
of its personnel: damage to property and to its content at the replacement value, professional and operating civil
liability in the event of bodily injuries, property or immaterial damage caused to third parties.
The above coverage is completed by a comprehensive information technology contract for the IT equipment, office
automation and specific hardware, for a declared value of €12.4 million. This contract also includes an information
reconstruction guarantee in the amount of €1 million, and an additional guarantee for supplementary operating
expenses in the amount of €5 million.

Strategic risks
The strategic risks involve the risks inherent to the selected strategy or that result from the inability of Bpifrance
Financement to carry out its strategy.

The political and macro-economic risks, and the risks related to the financial circumstances specific to the
countries in which Bpifrance Financement is active
Bpifrance Financement is subject to risks of losses resulting from many unfavourable developments in political,
economic and legal sectors, notably currency fluctuations, social instability, changes involving government or central
bank policies, expropriation, asset confiscation and changes to the legislation relative to property rights.
Regulated own funds and solvency
On 31 December 2013, the solvency ratio of Bpifrance Financement was 12.89%.
Solvency ratio: own funds and weighted risks
(in € millions)
Regulatory own funds
including original own funds
including complementary own funds(1)
Weighted risks
Credit risk
Balance sheet items
Off-balance sheet items (2)
Operational risk
Solvency ratio
including original own funds
(1) including:
Guarantee fund
Reserve funds
Subordinate securities of indefinite duration
Redeemable Subordinate Securities
(2) including forward financial instrument
31/12/2012
31/12/2013
3,740.1
2,607.8
1,132.3
24,888.2
23,363.7
14,071.9
9,291.8
1,524.6
15.03 %
10.48 %
3,694.6
2,643.6
1,050.9
28,662.1
27,315.6
18,281.8
9,033.8
1,346.6
12.89%
9.22%
617.3
509.3
0.0
0.0
12.1
511.8
537.6
0
0
10.2
| 29
The changes to the solvency ratio between 2012 and 2013 resulted from:

an increase of the weighted risks primarily as a result of the significant increase of the co-financing outstandings;

partially offset by the evolution of the numerator:
- non-distributed net earnings taken into account in the original own funds
- a lower contribution of the guarantee fund to the supplementary own funds
Regulation concerning major risks
The regulation concerning major risks imposes a declaration at the end of each quarter.
18
A major risk is a risk for which the weighted amount exceeds 10% of regulated own funds, but while necessarily
remaining below 25% of these funds. Moreover, the risks relating to a single beneficiary must also be declared under
the same conditions when all of the gross risks incurred as a result of the operations with this beneficiary exceed
19
€300 million .
As the group’s legal set-up only occurred in the second half of 2013, only the risks of Bpifrance financement were
declared on an individual basis up to 30/09/2013. The declaration submitted to 31/12/2013 applied on an individual
20
basis (Bpifrance financement) and on a consolidated basis (BPI-Groupe SA).
To 31/12/2013
Bpifrance Financement
Number of Major Risks
2
BPI-Groupe SA
1
Cumulative Major Risks
21.94
21
21.13
Prudential regulations applicable on a corporate basis
From January to November 2013, the solvency ratio of Bpifrance Financement remained in excess of the regulatory
standard of 100%. Calculated in compliance with the order of 5 May 2009 relative to the identification, management,
measurement and control of liquidity risks, the Bpifrance Financement liquidity ratio stood at 206% on 31 December
2013.
3.3.6. Consolidated and corporate results of Bpifrance Financement
The consolidated financial statements
Since 1 January 2007, the consolidated financial statements of Bpifrance Financement have been prepared using the
international accounting principles and methods set down by the IASB, i.e. the IFRS standards (International Financial
Reporting Standards), as adopted by the European Union.

The income statement
The Net Banking Income amounted to €480.8 million versus €506.1 million in 2012. This decrease is the
consequence of non-recurring elements booked in the guarantee sector in 2012, for nearly €23 million. They include
the capital gains realised at the time of the assignment of securities backed by the guarantee fund in order to transfer
the cash to AFT, as well as the proceeds booked upon the settlement of an old tax dispute. Excluding these elements,
the 2012 NBI would have been €483 million.
Regarding the guarantee sector, the average employed outstandings now stand at €11.7 billion, an increase of 4.8%
despite the strong decline of the outstandings on the recovery plan funds that now only represent €0.6 billion. This
increase resulted in a commission level of nearly €75.9 million, an increase of €3.4 million, but the commissions on
18
Regulation 93-05 of 21 December 1993
Instruction n° 2000-07 of 4 September 2000
Art. 3.1 of regulation 2000-03
21
As a % of regulated own funds
19
20
the Recovery plan funds still represented nearly 5%. The financial proceeds, for the share attributable to Bpifrance
Financement, that are representative of the investment of financial assets primarily with the AFT, represent an
amount of €6.3 million.
Regarding the innovation sector, the generated NBI was marked by a decline of the operating resources, offset by the
development of own resources and, exceptionally this year, by an adjustment that generated book value on an
agreement with a partner.
Regarding the financing sector, the activity level in 2013 relative to the medium and long-term financing proceeds
were equal to €5 billion versus €4.7 billion in 2012, resulting in the average outstandings increasing to €16.3 million,
thereby increasing the volume of the commercial margin (invoiced interest, incidental proceeds, commissions less the
cost of the normative refinancing). Despite everything, this increase remains weaker than that of the outstandings, as
a result of the growing share of the cost for access to a guarantee of funds. In 2013, the financing activity for the
customer item also increased sharply with the set-up of the CICE, that completes the traditional activity. At €61
million, this activity’s commercial margin represents nearly 23% of the total margin.
The growth capital activity, through Avenir Entreprise and Avenir Tourisme, is stable at €4.8 million. The refinancing
conditions, benefiting from the guarantee given by the EPIC, made it possible, once again this year, to generate
additional financial proceeds.
The operating expenditures (personnel expenses, day-to-day operations and investment expenses) amounted to
€297.2 million, a slight increase of 2.5% relative to 2012. The operating ratio, at 61.8% versus 57.2% in 2012, is
exceptionally low.
The collective provisioning on the cofinancing activity notably includes sector-based provisions that cover the risk of
the deteriorating solvency of customers that are active in business sectors that are particularly exposed to the
economic crisis.
On these bases, the net risk cost amounted to €75.8 million for 2013. This included an allowance for collective and
sector-specific depreciation of €36.4 million and a higher risk cost on individual operations by 18% to €39.4 million, in
line with the increase in the average outstandings.
The group share of net income amounted to €58.7 million.

The balance sheet
The balance sheet total amounted to €34.7 billion, an increase of €4.8 billion.
The financial structure has consolidated over the course of recent years. The pre-results group share of shareholders
equity represented €2.7 billion at the end of 2013.
The doubtful loans net of impairment represented 3.1% of the customer outstandings. The gross doubtful loans were
28.5% provisioned. The total impairment amount stood at €839.1 million, representing 3.4% of the total outstandings.
The net amount of innovation financing aid was equal to €614.9 million after €663.9 million of collective depreciation.
The corporate financial statements
The individual financial statements are prepared in compliance with the provisions applicable to lending institutions
according to the French standards.
Contrary to the consolidated financial statements drawn up in financial accounting, corporate financial statements
place greater emphasis on the legal nature of the lease:

real estate is depreciated according to the methods allowed under tax law (straight-line depreciation, diminishing
balance method, or even progressive or specific to the SICOMI treatment, depending on the case),
| 31

all the rents and charges associated with the default of the lessee are recorded as NBI.
The net earnings determined in this manner amounted to €12.8 million, thereby generating a change of the latent
reserve on leasing operations of €42.8 million.
At the end of 2013, the balance of the inventoried accounts payable was equal to a total of €12.4 million.
This amount involved invoices for overhead costs for €0.1 million and invoices relative to leasing operations for €12.2
million.
Regarding the payment timeframes for suppliers, Bpifrance Financement complied with the provisions of article L4416 of the Commercial code.
3.3.7. Outlook for 2014
The financing of investments and of the operating cycle
For 2014, an intervention capacity of €5.25 billion for medium and long-term financing is anticipated.
For classical long and medium-term financing, stability at €3.6 billion is expected, as a result of increasing
interventions in industry and energy-environment for the business sectors in question, along with stability with regard
to leasing.
On the other hand, Development Loans are targeting a very strong increase to €1.65 billion, in order to finance the
immaterial in a context of resuming investments. This intervention level will be made possible, in addition to the
State’s endowments, by the ones from the Commissioner General for Investment, thereby allowing Bpifrance
Financement to launch new products such as the Digital, Green and Robotics Loans, etc.
In 2014, Bpifrance Financement will have to ramp up its role in the pre-financing of the CICE (Competitiveness and
Employment Tax Credit), the rate of which is increasing from 4% to 6%.
Short-Term Financing, that saw strong growth in 2013 (€50 million of Net Banking Income), should repeat its good
performance while further developing the volume of transferred receivables and the usage rates, as well as through a
new offer that specifically targets receivables originating abroad.
Guarantee and financing delegated to banks
The guarantee activities are expected to remain stable at €3.5 billion.
In addition to the classical funds (creation, transfer / buy-out, development…), banks will also be able to rely on two
new funds set up as part of the National Growth, Competitiveness and Employment Pact, in favour: Cash
Strengthening and Pre-Financing of the CICE (Competitiveness and Employment Tax Credit).
With regard to the financing activities delegated to banks, the current range (Company Start-up Loan and the zerorate Restaurant Modernization Loan) will be completed by a Social and Interdependent Economy (French acronym:
ESS) Loan.
After a very good year, the projected activity of Bpifrance Régions is equal to €220 million for 2014.
Innovation
The Innovation Financing activity is at the heart of the NOVA plan, and must meet several challenges in terms of
activity and economic model. In 2014, 30% growth is anticipated, notably thanks to reloading of the regional
individual aid and its multiplying effect. Moreover, handling charges on the individual aid and collaborative
programmes, from 1% to 3%, are in the process of being implemented.
The objective in 2014 is to complete the project begun in 2013, and to launch new initiatives in line with the NOVA
plan.
Regarding simplification, in addition to improving the processes of the collaborative programmes, measures have
been taken with regard to the individual aid tools in order to simplify the application file for innovation assistance. The
objective is to make it easier to file applications, by proposing a single framework for applying for innovation
assistance. Similarly, there will henceforth be only one file for the innovative company qualification, and a customer
extranet is being created specifically for the filing of applications for innovation assistance.
Regarding support, the public innovation players have worked together in order to launch, on an experimental basis, a
“French Tech Pass” offer. The objective: to encourage the development of very high-potential companies (in
the digital sector during the test phase) by providing them with priority, accelerated and exclusive access to
premium services from the main players in economic development aid. This experiment will be led by a limited
number of regional players, before being extended in 2015 in the event that it proves to be successful.
2014 will also be the first year of the Ubi I/O accelerator, with 8 innovative start-ups going to San Francisco for 10
weeks starting in May, in an effort to establish themselves on the American market.
Regarding financing continuum, several initiatives targeting better non-technological innovation financing will be
implemented. The kick-off of the New Entrepreneurs Market, prepared with the MRP, is expected in March 2014,
with the objective of supporting in the area of 300 projects with up to €30,000 per project. Additional resources will
also be allocated to non-technological innovations via a programme of €120 million available as of 2015, as part of the
“Investing in the Future” Programme. In 2014, initial social innovation projects will also be financed in partnership with
the first candidate regions.
In Q1 2014, Bpifrance will complete its range of intervention tools with 2 new types of loans: the Innovation Loan
(IL) that allows innovative companies to finance the fundamental step of moving the project from research to industrial
production, while covering the material and immaterial innovation expenses, and the Innovation Priming Loan (IPL)
that allow companies that have just completed a round of fundraising to obtain a loan in an amount equal to 50% of
what they have raised (up to €500,000), repayable after two years. Moreover, the ceiling of the Participatory
Seeding Loan has been raised to €200,000, with participation by the region.
3.3.8. Report on Corporate Social Responsibility (RSE)
The general economic interest task of Bpifrance Financement was reasserted and strengthened by the creation of the
Bpifrance group, in the service of the financing and development of companies, while providing support to the public
policies carried out by the State and by the Regions.
For the second consecutive year, the establishment is reporting on the actions carried out and the orientations
adopted in order to better consider the social, environmental and societal consequences of its activity.
In terms of methodology, the covered perimeter is that of the subsidiaries consolidated for accounting purposes using
22
full consolidation . The subsidiaries in question have no personnel and dedicated premises, as the human and
technical means are made available to them by Bpifrance Financement. These subsidiaries perform technical or
portfolio activities with no new activity, with the exception of Bpifrance Régions. AUXI Finance owns the head office
building in Maisons-Alfort, while the SCI “OSEO”, owns certain of the regional facilities of Bpifrance. Insofar as
necessary, clarifications are provided to certain communicated information or indicators, when they relate to a
different perimeter or include specific features.
22
Cf. Note 7.2 Equity interests and subsidiaries from the individual financial statements
| 33
Responsible governance
The chairman of the board of directors of Bpifrance Financement reports on the conditions for the preparation of the
Board’s works, as well as the composition of the committees placed under its responsibility.
This report highlights the conditions for the responsible performance of the Board’s works, that rely on the preparatory
works of the business line, audit and risk committees; balance between the representation of the two main
shareholders and of independent directors is ensured within the Board and within these committees.
The rules of procedure, that describe the operation and prerogatives of the Board of directors and of the committee,
also include a director’s charter that provides the duties of the latter, notably with regard to attendance, presence,
confidentiality and ethics. Finally, the presence of women within the Board of directors (5 directors out of 12) was
strengthened at the time of the modification that occurred after the legal set-up of the Bpifrance group. The
governance bodies of the subsidiaries are regularly convened in order to vote on, pursuant to the legal, regulatory and
statutory provisions, the agenda provided to their members, who represent the shareholders in the various categories
including, for Bpifrance Régions, representatives of all four regions and one representative of the ARF.
The internal control and risk control system complies with regulation 97-02 from the Consultative Committee on
Legislation and Financial Regulations; it firstly includes the permanent control system that is the responsibility of the
senior managers, management and Risks Permanent Control Department (French acronym: DCPR), and, secondly,
the periodic control system implemented by the General Inspection – Audit service.
The employees working within the Bpifrance Financement group, hereinafter referred to by convention as Bpifrance
Financement, are made very aware of risks, by:

the ethics charter that reiterates and defines the applicable rules in terms of confidentiality and professional
secrecy, integrity, loyalty and professionalism, as well as conflicts of interest;

the training regarding the efforts to combat money laundering and terrorist financing, strengthened by the set-up
of an e-learning module that was used by nearly 57% of the employees in 2013;

the interventions of the Internal Control departments during training sessions;

a system of decision delegations structured by sector and risk level, as well as decision-assistance tools.
The establishment uses a sustainable purchasing policy (eco-labelled paper, energy-saving copiers, fleet of vehicles
producing less than 150 g of CO2), and its aim is to continuously improve its environmental footprint. In view of the
nature of the activities, the recourse to subcontracting is marginal; the contracts signed with suppliers reiterate the
regulatory provisions with regard to working conditions and protecting the manpower, as well as environmental
protection. No specific action was initiated in support of human rights.
Strong relations with stakeholders
The activities of Bpifrance Financement are carried out against a backdrop of many and varied relations with all of the
stakeholders, in support of the national and regional public policies, and in partnership with all players of the
economic community.
The directors and qualified persons sitting on the board of directors and within the business line committees represent
the shareholders, partners, companies and some of their organisations, as well as the establishment’s employees.
The relations with customers and partners are structured by the decision to set up shop in the regions, as close as
possible to the public and private customers and partners.
The website Bpifrance.fr provides the community with qualified information, it provides orientation to companies or
project backers, and provides a means of reaching out to identified contacts, by dematerialized means or by mail; the
development of online communication and management tools is continuing, with, for example, the Regional Services
Portal.
With its 3000 entrepreneurs, the Bpifrance Excellence community provides growing companies with a voice, notably
thanks to the regularly performed polls on topical subjects or concerns.
The regulatory obligations in terms of the preparation and transmission of documents to supervisory authorities and
rating agencies are strictly respected, and the latter consulted whenever necessary.
On the internal website, employees are provided with continuous information on the life of the company and its
activities, while also having access to an area and tool dedicated to human resources, along with identified contact
persons. Moreover, the personnel representative bodies and trade union organisations actively participate in the
social dialogue.
Finally, meetings and exchanges with institutes and universities make it easier to welcome and integrate trainees,
apprentices and students on work-study programmes, while thereby helping with their integration into professional life.
A strong societal impact
In 2013, Bpifrance Financement performed its activities while carrying on from the past and with new momentum due
to the creation of the Bpifrance group, “in the service of the financing and development of companies, while providing
support to the public policies carried out by the State and by the Regions”.
The decentralisation of the activity to the regions continued, with a distribution of the network/head office staff that
strengthens the proximity and trusting relation with the regional authorities and the public and private actors that
provide companies with support and financing. As such, more than 90% of the financing decisions are made in the
regions.
The provisions for the partnership with the regions have been reviewed with each of them, in order to formalize new
master agreements that reassert the importance of the relationship and that define the operational cooperation links
that will be implemented in order for the actions of the Bpifrance group to align with the regional economic
development strategy.
In the tense economic context of 2013, the continuum of the support offer for companies from Bpifrance Financement,
the policy for systematic intervention as part of a partnership with private or public actors in the financing of
companies, and the establishment’s decentralised organisation, as close as possible to the needs of companies and
partners, made it possible to provide companies with unprecedented support: more than 90,000 companies received
support from Bpifrance Financement, an increase of 8% relative to 2012, for an amount of risks covered by the
establishment of €18.5 billion, an increase of nearly 16%. The sustainability and growth potential of the companies
have been strengthened by this, employment has increased and the social cohesion of the territories has been
maintained. The major stakes (Ecological and Energy Transition, sectors of the future such as the digital conversion,
health and the economy of the living world) are taken into account in the development of the offer of products and
services intended for companies (Digital loan, LICC, Innovation Loan), while the classical products that provided their
support have been maintained (finance lease, loans, innovation support).
The support actions for companies notably build on the results of the polls performed with members of the Excellence
network, and on meetings within the framework of national or regional events. Moreover, the networking site for SMEs
and EuroQuity capital investors continued its development with e-pitches being placed online every fourth Thursday of
the month and, internationally, with the renewal of its partnership with KfW in December, and lastly by now being
open to the European Union Member States.
| 35
Social information
Employment – Equal treatment
In 2013, Bpifrance Financement continued its dynamic hiring policy that focuses on rebalancing the human resources
between the network and the head office, and while devoting attention and sustained means to the development of its
employees, the quality of their working conditions and their safety.
On 31 December 2013, the total personnel, for which the average age is under 45 years, therefore increased from
23;
1804 to 1839 employees, all of whom are working in France, and nearly 99% on permanent contracts on average,
82% of them have executive status.
The departures, slightly lower than in 2012 (86 versus 88, of which 80 on permanent contracts versus 84), only
included two layoffs (11 in 2012).
The turnover rate due to dismissals remains low, at 1.12%, which provides confirmation of the benefits of the internal
promotion and talent retention policies.
114 new hires on permanent contracts were carried out, increasing the renewal of this staff to 6.37% versus 5% in
2012.
More than one third of these new hires were young people under 25 years of age, who will be working both in the
network and in the head office.
The partnership between the establishment and schools and universities, resulting in an increase in the number of
students on professionalization or apprenticeship contracts, from 70 to 74, provides young people with an initial
corporate experience, and facilitates their integration into professional life, while providing Bpifrance Financement with
a recruiting pool and talent incubator.
The gross annual compensation, i.e. €95,425,342, increased by 2.61%. It includes, for certain positions, variable
compensation components that are based on criteria of qualitative and quantitative objectives.
The objective of rebalancing the human resources between the network and head office (60/40), intended to
strengthen the establishment’s proximity with its stakeholders in the region (companies, partners), has almost been
reached, and now stands at 57/43.
The establishment, that carries out its activities in France in compliance with the legal and regulatory obligations,
accordingly respects the rules for combatting forced labour and child labour, and actively works to combat
discrimination of all kinds, while complying with the fundamental conventions of the International Labour Organisation,
by:

regularly raising the awareness of its human resources management teams;

the agreements signed with the social partners, and notably the intergenerational agreement signed in 2013,
which completes the ones already in place, notably in terms of professional equality between women and men
and the employment of handicapped personnel, in order to ensure that the interests of all personnel categories
are taken into account;

training, which includes offers relating to preventing discrimination and to recruiting and integrating handicapped
people;

the awareness-raising actions include conferences at the head office, participation in the handicap week,
information and an e-learning module available on the intranet.
Work organisation – Health and safety
The theoretical weekly schedule is 37.5 hours, and the annualized average workweek is 35 hours. More than 77% of
the staff members are subject to a flat-rate number of days worked, basically the same as in 2012, while the other
23
Excluding secondments
employees use variable schedules. It should be noted that the number of part-time employees fell, from 550 people
on 31 December 2012 to 521 on 31 December 2013.
The average number of days of annual holidays taken per employee, excluding the Time Savings Account, was stable
in 2013; a rather insignificant increase in the average number of sick leave days - excluding long-term illnesses - was
noted, from the very low figure of 2.89 days to 3.67.
The occupational healthcare service provides clinical examinations for all employees at the head office and in the
network’s various sites.
No occupational illnesses were recorded in 2013, versus 2 in 2012, and 26 accidents, of which 3 with sick leave, were
reported versus 36 in 2012. The accidents occurring within the company dropped from 15 to 8, thereby decreasing
frequency rate of accidents with sick leave from 3.18 to 0.95, and the severity rate from 0.06 to 0.01.
No new agreement with regard to occupational health and safety was signed.
The expenses devoted to improving the working conditions amounted to €10,077,304, versus €7,346,200 in 2012; this
increase of more than 37% can notably be explained by the extension costs for six regional departments, the
development of two network departments, and of the relocation of one of them.
The safety-related expenses also increased significantly, from €760,177 to €1,015,576 in 2013, primarily as a result of
works.
Social relations
Signed in February 2011, the agreement relative to social dialogue and the status of the personnel representatives
within Bpifrance Financement defined the framework for the terms of office of the personnel representatives, the
resources allocated to the personnel representative bodies and the elements that ensure the personnel
representative’s recognition and career development.
The social dialogue was more intense in 2003 than in 2012, against the backdrop of the set-up of Bpifrance, and it
resulted in the signing of 8 agreements, including an agreement relative to the social construction of Bpifrance and an
inter-generational agreement.
Training
Bpifrance Financement devotes the greatest possible importance to the evolution and training of its employees,
throughout their careers. Each year, the training plan is adjusted after consultations with the operational departments
and the works council; more than 82% of the employees attended at least one training session in 2013 (versus 80%
in 2012) and 38,996 training hours were provided, an increase of 3.4%, for an overall investment of €4,638,772, a
slight decrease relative to 2012. Provided by trainers and experts, 81% of these training sessions related to
arrangements considered to be “workstation adaptations, evolution, continuing employment” and, with the other 19%
relating to so-called “skills development”.
The employees also had access to other arrangements related to the training plan: DIF, validation of the gains of
experience, diploma-granting training, CIF…
| 37
SOCIAL INFORMATION APPENDIX
Personnel growth to 31 December
Total personnel
Of which permanent contracts *
24
*Of which FTE
Of which seconded permanent contracts
Of which women
Of which men
Of which executives
% of executives
Of which non-executives
2013
1839
1820
2012
1804
1790
1711
13
1157
682
1504
81.8%
335
1675
10
1125
679
1457
80.7%
347
New hires on permanent contracts
2013
2012
total
of which < 25 years
total
of which < 25 years
114
39
92
29
Renewal of term contracts
2013
2012
Permanent staff in 2012
Renewal
Permanent staff in 2011
Renewal
1790
6.37%
1777
5.18%
Departures excluding secondments
Number
85
2013
Of which
permanent
contracts
79
of which layoffs
Number
2
88
Amount of the wages
24
2012
Of which
permanent
contracts
of which layoffs
84
11
25
2013
2012
Change
95,425,342
93,000,326
2.61%
Number of permanent contracts, term contracts, including seconded and unpaid leave, full-time or part-time as on 31/12/2013*, excluding CFC
and trainees,
25
Gross corporate wage bill of the DADS
Age and sex of employees in 2013
Network / Head Office distribution
2013
2012
network
head office
network
head office
1054
785
1004
800
57%
43%
56%
44%
26
Turnover
2013
Permanent contract Permanent staff
resignations
2012
20
1,790
in
Turnover
1.12%
Permanent contract
resignations
15
2012
Permanent staff in
2011
1777
Turnover
0.8%
Work organisation
2013
2012
35 hours
35 hours
Theoretical weekly schedule
37.5
37.5
Number of employees with variable schedules
412
436
Number of flat-rate employees
1414
1358
1826
1794
521
550
Annualized average workweek
Total Permanent contracts – Term contracts
Number of part-time employees
28
27
26
Permanent contracts excluding secondments
Excluding secondments and work-study students
Permanent contracts and term contracts
27
28
| 39
Meetings of the personnel representative bodies
2013
2012
Works council
15
13
Personnel delegates
12
12
Trade union organisations and trade union delegates
26
25
Health and safety committee
12
7
Amount of the expenses
2013
4,638,772
2012
4,555,475
% of the payroll
Number of training hours
Number of trainees
% of the total personnel
4.86%
38,996
1,564
82.32%
4.93%
37,726
1,456
80.7%
Training
Environmental information
The impacts of the tertiary activities carried out by the establishment primarily originate with the real estate locations
in which they are performed, employee travel and paper consumption.
Wishing to manage the identified impacts of its activities as well as possible, Bpifrance Financement has a General
Means Department in charge of managing the facilities of the head office and network, as well as the logistics
(purchasing of consumables, vehicle fleet, travel…). This centralised steering, coordinated with the departments,
ensures uniformity and compliance with the defined policies, while optimising the choices that are made for the benefit
of all stakeholders in question; as such, measures have been taken in order to prevent and limit the activity’s effects
in terms of pollution (catalogue of the vehicle fleet, professional travel policy) and waste management (for the head
office: selective sorting of the garbage cans in the offices and company restaurant), in order to better control the
usage of resources (water installation at the head office), while steering tools may also be progressively implemented
in order to monitor the environmental impacts. Given the nature of the activities carried out, the risks of adverse noise
effects, or relative to biodiversity and land use are not significant, and no specific measures have been taken. No
provision or guarantee for environment-related risks has been set up or given.
The General means department monitors various indicators, still few in number in 2013, with regard to the ones
29
resulting from the real estate installations at the head office, which accommodates 43% of the staff, i.e. 785 people .
As on 31 December 2013, 38 other facilities accommodate the 1054 employees looking after the network-related
activities, working with the customers and partners for the set-up, study and management of operations. These
facilities will be completed in 2014 by new sites within the overseas territories.
Within a perimeter that is still to be defined, the measurement of the impacts will be extended regionally to some of
these sites in 2014. The awareness-raising of the head office employees, resulting from a booklet presenting the
certified building and the installation of selective sorting garbage cans in the offices and company restaurant, will be
extended to the sites in question.
The qualification initiative launched in 2012 for the head office building, known as Le Vaisseau in Maisons Alfort,
resulted in the certification “NF Bâtiment Tertiaire en Exploitation – Démarche HQE” being obtained in 2013.
29
This staff performs its activities in the head office building and in the attached rental premises; in the absence of the distribution and measurement
of the impacts of the rented premises, the indicators for the head office will be related to the total personnel.
After the measures taken in 2012 to improve the building’s energy efficiency, relative to recycling and waste disposal,
and to reducing the water consumption, the General Means Department decided to carry out, under the best possible
conditions in terms of timeframe and for accommodating the personnel, extensions and changes to the sites
generated by the creation of Bpifrance. The measures taken in order to prevent environmental risks and pollution
involve continuing with the rigorous maintenance programmes for the installations (fuel oil tank, hydrocarbon
separator for runoff water from the car park, air cooling towers, analysis of indoor air quality).
The real estate management improvement programmes, intended to reduce the environmental footprint at Le
Vaisseau, will be resuming in 2014, notably with changes to the sanitary facilities and to the Building Technical
Management, that will optimise the control of the lighting and temperatures.
At the same time, a reflection was initiated firstly in order to enhance, in 2014, the awareness of the personnel relative
to environmental issues and, secondly, with regard to the new improvement measures that will be implemented.
The establishment uses 84% of the building that contains the head office, known as “Le Vaisseau”, that is indirectly
30
owned by Bpifrance Financement .
The building’s energy consumption indicators, as well as the associated indicators of CO2 emissions, water and waste
production as shown below have been determined for the share of the building’s usage by Bpifrance Financement.
The consumption of fuel oil is not significant, and therefore not included in the calculation.
The energy consumption in kWh includes 84% from electricity and 16% from city gas, with stable volumes from one
year to the next:
ENERGY AT LE VAISSEAU
Bpifrance Financement recorded energy consumption (kWh)
2013
2012
Change
4,827,479.26
4,805,895.42
0.45%
Two thirds of the CO2 emissions result from electricity consumption, and one third from gas consumption: the figures
are virtually stable, with an increase of 0.7%:
CO2 EMISSIONS AT LE VAISSEAU
CO2 emissions related to the recorded energy use31
2013
2012
Change
483,775.61
480,416.49
0.7%
The water consumption figures increased by more than 9%, despite the installation of low flow faucets in 2012, as a
result of the works carried out in the IT rooms, which require significant cooling generation.
WATER AT LE VAISSEAU
Recorded consumption in M
3
2013
2012
8831
8095
Change
9.1%
30
For the 2013 fiscal year, it is considered that all head office staff are attached to Bpifrance Financement, with no differentiation in the share of the
personnel of the Investment subsidiaries present within the premises over a period of two months.
31
These data correspond with the collected data on the electricity and gas consumption, to which the transformation coefficients have been
applied; the CO2 emissions resulting from the gas consumption take into account an average altitude coefficient of 1.24. The consumption of fuel oil
is not significant, and therefore not included in the calculation.
| 41
The volume of produced waste dropped by 12.4%, essentially due to the absence of waste relating to maintenance
and works in 2013. The business waste data changed only slightly, but downward, with the measures taken in 2012 in
order to decrease such waste having had an immediate impact on the volumes.
Waste
Type of waste (in tonnes)
2013
2012
Change
182.37
185.32
-1.6%
Maintenance waste
0
0.74
Works waste
0
22.24
182.37
208.30
Business waste
Total
-12.4%
As a result, the reclamation percentages changed appreciably, with the material / energy reclamation being almost
balanced.
% of waste reclamation at LE VAISSEAU
2013
2012
Materials
52
28
Energy content
48
72
The establishment’s general means look after buying paper and monitoring its consumption, as well as all travel and
vehicle fleets, which thereby makes it possible to measure the related impacts across the entire territory and involving
all personnel.
Paper consumption
32
remains stable (+1.05% versus a total staff increase of 2%).
Paper consumption
33
(tonnes) Bpifrance Financement
2013
2012
Change
126.81
125.49
1.05%
Finally, CO2 emissions resulting from professional travel increased slightly when considered against the activity
increase in 2013.
CO2 emissions (in kg) Bpifrance Financement
35
TRAIN
AIRPLANE
CAR
32
34
2013
13,795
2012
15,038
Change
4%
201,791
1,323,950.65
193,604
1,238,444.72
4%
7%
Tonnages ordered per year, Suppliers source, printing and copying paper; are therefore excluded, notably letterhead paper, paper intended for
communication documents (brochures) and the paper for works entrusted to printers
33
Printing and and copying paper, excluding letterhead paper and works entrusted to printers
34
Excluding usage of personal vehicles, rentals or taxis, and excluding travel by rail excluding SNCF, and by air, excluding Air France/KLM
35
The obtained 2012 indications that assessed the CO2 emissions at 36,610 kg of CO2, were incorrect.
3.3.9. Legal information
Group perimeter
EPIC
BPI Groupe
Caisse des
Dépôts
50%
50%
Bpifrance
Banking
Institutions
10%
90%
Bpifrance
Bpifrance
Financement
Participations
99%
1%
Regions
100%
Bpifrance
Régions
100%
Bpifrance
Investissement
| 43
Main equity interests
A detailed table of subsidiaries and non-consolidated investments is included in the notes to the financial statements.
The following are the operations carried out by Bpifrance Financement in 2013, for which the amounts were
significant:
1°) Absorption of OSEO Industrie, by transfer of all assets and liabilities,
2°) Reclassification of equity interests as part of the creation of Bpifrance

Purchase from BPI-Groupe of its 46% equity interest in the capital of Bpifrance Régions contributed to BPIGroupe by the Caisse des Dépôts, in the amount of €6.8 million,

Purchase from BPI-Groupe of its 41.5% equity interest in the capital of SOGAMA Crédit Associatif, a mutual
surety company in the social economy and solidarity sector, in the amount of €6 million.
3°) Operations within the compartments of the AVENIR ENTREPRISE DÉVELOPPEMENT FCPR (venture capital
mutual fund) that was created in 2008 to group the equity interests of OSEO and of the Caisse des Dépôts within
common venture capital structures:

transfers in the amount of €4.9 million from compartment 2 that accommodated the equity interests of the SCR
AVENIR TOURISME, to compartment 4, which is the vehicle for new operations,

amortisations of units in the amount of €9.3 million of compartment 4, which is the vehicle for new operations,

cancellation of unpaid units of compartment 4 in the amount of €1.6 million.
4°) Acquisition of a 34% equity interest in the capital of GRAS SAVOYE - Auxi Assurances, a company in this
insurance brokerage group dedicated to insurance operations involving the beneficiaries of OSEO credit operations.
Compensation of corporate officers
(In euros) 2012
Name
Title
Compensation
Compensation
Benefits
fixed
Variable (1)
in kind (2)
TOTAL
€481,565.62
François Drouin
€343,975.44
€137,590.18
Joël DARNAUD
Executive Vice President
€188,590.20
€55,319.60
€16,823.20
€260,733.00
Arnaud Caudoux
€172,874.40
€50,133.60
€5,284.61
€228,292.61
Laure Reinhart
€151,919.88
€50,133.60
€2,646.72
€204,700.20
In all, the compensation paid to directors during fiscal 2012 was equal to €1,175,000.
(In euros) 2013
Name
Title
Compensation
Compensation
Benefits
fixed
Variable (1)
in kind (2)
TOTAL
François Drouin
until 3 June 2013
€146,189.56
€241,025.00 (3)
Joël DARNAUD
Executive
Vice
until 12 July 2013
President
101,128.08€
€61,457.00
€9,462.12
€172,047.20
Arnaud Caudoux
Executive
Vice
until 12 July 2013
President
€92,700.76
€56,335.00
€2,794.71
€151,830.47
Laure Reinhart
Executive
Vice
until 12 July 2013
President
€80,913.85
€49,507.00
1,596.73€
€132,017.58
€387,214.56
(1) Awarding and painting criteria determined by the State, following a proposal from a compensation committee.
(2) The benefits in kind consist of company cars or housing.
(3)Relative to 2012 and 2013.
In all, the compensation paid to directors during fiscal 2013 was equal to €843,000.
Moreover, Nicolas Dufourcq, General Manager of the SA BPI-Groupe and Chairman and Chief Executive of Bpifrance
Financement, the only director as of 12 July 2013, received compensation of €188,888.87. This compensation was
paid by the SA BPI-Groupe.
The directors do not receive directors’ fees in respect of the offices that they hold with companies within the group.
Summary table of the delegations of competence granted by the General Meeting to the Board of Directors with
regard to capital increases
In compliance with article L225-100 of the [French] Commercial code, the management report includes an appended
summary table of the currently valid delegations granted by the General Meeting of the shareholders to the Board of
Directors relative to capital increases, in application of articles L225-129-1 and L225-129-2. The table indicates the
usage of these delegations during the fiscal year:
Date of the General
Meeting
Extraordinary
General Meeting on
02.03.2012
Extraordinary
General Meeting on
02.03.2012
Nature of the delegation
Article L225-129-2:
Authorisation given to the Board of Directors to
carry out a capital increase in cash in the
maximum amount of €513,638,106.50 reserved
for the owners of the shares comprising the
company capital.
Article L225-129-6 sub-para.1:
Authorisation given to the Board of Directors to
carry out a capital increase in cash in the
maximum amount of 3% of the capital on 31
December 2011, reserved for the members of a
company savings plan or of a group savings
plan, as part of the aforementioned capital
increase, the realisation of which is delegated to
the Board of Directors.
Duration of the
delegation
Twenty-six
months, i.e. until
01.05.2014
Usage during fiscal
2013
No
Twenty-six
months, i.e. until
01.05.2014
No
* The currently valid delegations are shown above, as is their usage during fiscal 2013.
On the General Meeting of 2 March 2012, the shareholders delegated to the Board of Directors, in keeping with article
L225-129-2 of the Commercial code, its competence with regard to deciding on a capital increase in cash for
| 45
Bpifrance Financement, in a maximum amount of €513,638,106.50, as part of the creation of its subsidiary OSEO
Industrie.
As part of this delegation of authority, and in compliance with article L.225-129-6 sub-paragraph 1 of the Commercial
code, the General Meeting also voted on a draft resolution for the purposes of carrying out a capital increase reserved
for the employees.
These two delegations of authority were not used during the fiscal year of 2013 and there are no plans to use them in
the future, as OSEO Industrie was the subject of a transfer of all assets and liabilities in September 2013.
Ratification proposal for the co-optation of three new directors
As result of their resignation from their directorships of the companies SA BPI-Groupe, Bpifrance Régions and OSEO
Industrie, the Board of Directors meeting on 12 July 2013 co-opted, as replacements for the latter:

Mrs. Catherine HALBERSTADT, General Manager of the Banques Populaires du Massif Central.

Mrs. Marie Christine LEVET Associate Director of JAINA Capital, investment fund specialising in the development
of high growth Internet companies (e-commerce, advertising, media…) in Europe, the US and Israel.

Mr. Jean-François ROUBAUD, Chairman of the CGPME (Confédération Générale des Petites & Moyennes
Entreprises).
The General Meeting on 14 May 2014 is asked to ratify these co-options.
The additional information elements regarding these persons subsequent to article R 225-83 of the Commercial code
have been made available to the shareholders under the conditions indicated in articles R 225-88 and R 225-89 of
that same code.
Agreement signed in 2013 under the terms of articles L 225-38 et seq of the Commercial Code
Assignment contract between Bpifrance Financement and Bpifrance Investissement
Authorised by the Board of Directors on 29 November 2013 and signed on 11 February 2014, this agreement is
intended for the acquisition of the securities held by Bpifrance Financement within Bpifrance Investissement Régions
for the benefit of Bpifrance Investissement.
Capital increase of Bpifrance Financement
I
Reasons for the capital increase
1. As an extension of the contribution made by the Caisse des Dépôts to the SA BPI-Groupe of shares of Bpifrance
Régions (46.49% of the capital), on 12 July 2013, and subsequent to the favourable opinion from the Bpifrance
Financement audit committee in its meeting on 20 September 2013, the Bpifrance Financement Board of
Directors authorised, on 18 December 2013, the acquisition for its benefit of these Bpifrance Régions shares.
This operation will be carried out using the contribution value determined on 12 July 2013, i.e. €6,792,151.81.
After this operation, Bpifrance Financement will hold nearly 99% of the company’s shares, with the balance
remaining in the hands of CMGM, Local authorities and Directors.
2. Moreover, as part of the Shareholders’ Pact for BPI-Groupe, signed on 25 June 2013 at the time of the creation of
the BPI group, it was decided that the SA BPI-Groupe would acquire the equity interest of the Caisse des Dépôts
in the SOGAMA capital. The condition precedent for this acquisition was firstly the authorisation of the Prudential
and Regulatory Control Authority, and secondly the approval of BPI-Groupe in its capacity as shareholder, in
compliance with the provisions of the SOGAMA Shareholders’ Pact and Articles of incorporation.
Given that this is an activity with close links to the “Guarantee” business line, a proposal was made to the
Bpifrance Financement Board of Directors, on 18 December 2013, and accepted, that it should authorise this
acquisition by Bpifrance Financement, in the name and place of BPI-Groupe, which will include signing the
SOGAMA Shareholders’ Pact, as anticipated on 25 June of last year.
This operation will be carried out using the value determined by the BPI-Groupe Shareholders’ Pact of 25 June
2013, namely €6,010,910.78.
3. Finally, the BPI-Groupe Shareholders’ Pact of 25 June 2013 indicated that as part of the sums released – for up
to a quarter – on the date of the performance of the SA BPI-Groupe capital increase of €3,066,000,000, a sum of
€20,000,000 will be allocated to the subscription by the SA BPI-Groupe as part of a capital increase of Bpifrance
Financement.
Also, as previous indicated, the sum of €6,010,910.78 has been allocated to the acquisition of SOGAMA Crédit
Associatif, by the SA BPI-Groupe.
Pursuant to these three operations, the Bpifrance Financement Board of Directors proposes to the General Meeting to
initiate a capital increase for Bpifrance Financement reserved for the SA BPI-Groupe in the amount total of
€32,803,062.59, corresponding:
-
with the initially envisaged capital increase of €20 million,
plus €6,010,910.78 in order to allow the acquisition of SOGAMA, in the name and place of the SA BPIGroupe,
plus €6,792,151.81 in order to allow the acquisition of the SA BPI-Groupe equity interest in Bpifrance
Régions.
II
Valuation of the Bpifrance Financement shares (estimate on interim financial statements to
31.12.2013)
The shares of the Bpifrance Financement company are valued using the same method as the one used upon the
creation of Bpifrance, i.e. the corrected net assets.
The amount of the Group share of consolidated shareholders equity as on 31 December 2013 is equal to
€2,712,456,735.69, on the basis of the financial statements that are on this day presented for the approval of the
ordinary general meeting.
The unrealised capital gains net of taxes on the non-operating buildings (offices leased to the ANSES and housing
leased to the personnel) can be estimated at €6,872,820.62, which results in the company being valued at
€2,719,329,556.31 as on 31 December 2013, i.e. 93,829,906 shares (total number of shares less the 27,692 treasury
shares), with the value of the share being €28.98.
III
Operation provisions
Given the amount and extent of the operation, the proposal is made to carry out a capital increase in cash while
cancelling the pre-emptive subscription right only for the benefit of the SA BPI-Groupe, that holds 90% of the capital
of Bpifrance Financement.
On the basis of valuation of the share at €28.98, the issue will involve 1,131,920 shares, i.e. a total amount to be
subscribed of €32,803,041.60.
In compliance with the regulations, the Board of directors would simultaneously be given authorisation to carry out, by
delegation, a capital increase reserved for the employees.
| 47
Relative to the fiscal year ending on 31 December 2008
The information contained in this report is in response to the provisions of article L 225-37 of the Commercial code.
The Bpifrance Financement company does not refer to any governance code prepared by the company’s
representative organisations, but rather to Regulation 97-02 of 21 February 1997 relative to internal control of lending
establishments and investment companies. As such, the company is subject to an annual verification by the [French]
Prudential Control and Resolution Authority, which examines the referenced document and verifies its compliance in
view of the regulations of the Financial Markets Authority (AMF).
4.1. Conditions for the preparation and organisation of the works of the Board of Directors
The conditions for the preparation and organisation of the works of the Board of Directors are defined in the
company’s articles of association (resulting from order 2013-637 of 12 June 2013) and the Rules of Procedure of the
Board of Directors as adopted on 12 June 2013 and updated on 27 June 2013. A charter for directors is an integral
part of these Rules of Procedure.
4.1.1. Composition and operation of the Board of Directors
The Board of Directors consists of twelve members:

the Chairman and Chief Executive of Bpifrance Financement, appointed by the general meeting of the
shareholders,

seven representatives of the shareholders including three State representatives appointed by decree and six
members designated by the general meeting of the shareholders,

two employee representatives elected on 24 September 2013.
On 31 December 2013, the directors consisted of five women and seven men. The Board of Directors also includes a
panel of ten non-voting members. The Government Commissioner, the Secretary of the Works Council and the
Statutory auditors take part in meetings of the Board.
Each Board meeting is preceded by meetings of the “Business line” committees and of the Audit and Risk committee.
A statement of the conclusions of these bodies is provided to the directors for information, and for review by the
chairmen of the Committees during each Board meeting.
The members of the Board of Directors are invited by the Chairman at least eight days before each meeting, in a
letter that indicates the agenda. The documents and information needed to properly fulfil their missions within the
Board and Committee are, barring exceptional cases, provided to them at least 5 days before the meeting date.
The Chairman chairs the Board of Directors meetings, organises and directs the debates and ensures compliance
with the legal, regulatory and statutory provisions, and with the rules of procedure. With the exception of certain
ths
decisions requiring the Board’s authorisation with a qualified majority of 8/12 , and of the decisions requiring a
favourable vote from the State representatives, decisions are made by a simple majority. Minutes are prepared for
each meeting and sent to the members at the latest on the day of the convening of the next meeting that will approve
them.
4.1.2. Activities of the Board of Directors in 2013
The Board met eight times in 2013 and each of its quarterly meetings included an up-to-date presentation of the
activity and risks.
Its first meeting was held on 1 February 2013 in order to adjust the year’s budget, authorise the implementation of the
Innovation Loan and delegate, to the Appointments and Compensation Committee, the task of providing the Board
with the proposed criteria for the variable share of the compensation of directors.
The 29 March 2013, the Board of Directors was informed of the progress in the creation of the Banque Publique
d’Investissement. It also approved the proposals from the Appointments and Compensation Committee on the
variable part of the compensation of directors for 2012 and 2013, and closed the company’s financial statements for
the 2012 financial year.
On 14 May 2013, the fixed compensation of the corporate officers for 2013 was determined, as was the variable part
of the Chairman’s compensation. It also authorised the leasing, by OSEO’s non-trading real estate investment
company (Société Civile Immobilière) of premises on the Richelieu-Drouot street, in Paris, which accommodated the
teams from CDC Entreprises, the FSI and OSEO’s Regional Offices in Paris.
On 26 June 2013, the Board of Directors updated the company’s financial memorandum, it approved the update of
the budget for the Innovation activity, it authorised the launching of three new products (Export Development Loan,
Digital Loan and Industrialization Loan for Competitiveness Clusters), and it also authorised the dissolution without
liquidation of OSEO Industrie by transfer of all assets and liabilities to the limited liability company OSEO SA. It also
took note of the appointment of its new Chairman, Nicolas DUFOURCQ, by ministerial decision, and approved the
limited liability company BPI-Groupe SA as a new shareholder.
On 12 July 2013, the Board of Directors was held under its new term of office, after the Combined General Meeting
on that same day. It took note of the new company name and of the company’s new articles of incorporation. It
appointed its new Chairman and Chief Executive (Nicolas DUFOURCQ) as well as its Senior Managers (Nicolas
DUFOURCQ, Arnaud CAUDOUX and Joël DARNAUD), it appointed two new non-voting members and a co-opted
three new directors, Mrs. Catherine HALBERSTADT and Mrs. Marie-Christine LEVET and Mr. Jean-François
ROUBAUD as replacements for the companies OSEO Régions, OSEO Industrie and SA BPI-Groupe. It approved its
new Rules of Procedure as well as its Directors’ Charter and the company’s intervention doctrine.
On 27 September 2013, the Board of Directors closed the interim financial statements to 30 June 2013, appointed
eight new non-voting members and designated the members of the Audit committee, “Business lines” committees,
and of the company’s Appointments and Compensation Committee. It also authorised the signing of the Conflict of
interests charter with the company Bpifrance Investissement, and it approved the ACPR appendix relative to
protection of the clientele.
On 29 November 2013, it authorised the signing of the agreement relative to the buyback of the units of Bpifrance
Investissement Régions held by Bpifrance Financement and by Bpifrance Investissement.
Finally, on 18 December 2013, it took note of the assignment of the equity interest of the SA BPI-Groupe in Bpifrance
Régions by Bpifrance Financement, it determined the multiplying coefficients, and adopted the budget and the
financing plan for 2014. It authorised the recovery of the DOM funds, the launching of a new range of products to
finance Innovation, the implementation of Investing in the Future Loan, and the evolution of the Participatory
Development Contract. Finally, it set the calendar for its meetings in 2014, and appointed a new member of the
Financing-Guarantee Committee.
4.1.3. The Committees under the responsibility of the Board of Directors
The operation of these Committees under the responsibility of the Board of Directors is defined by its Rules of
Procedure.

The Audit and Risk Committee
The Audit and Risk Committee includes six members appointed from amongst the directors: Catherine
HALBERSTADT (General Manager of the Banque Populaire du Massif Central), who is its Chairwoman, Thomas
ESPIARD (Venture Capital and Specialised Financing Manager at the Caisse des Dépôts), Marie-Christine LEVET
(Associate Director of JAINA Capital), Sébastien RASPILLER (Sub-Director for Financing of Companies and the
Financial Market within the General Department of the Treasury), Sabine SCHIMEL (Chief Executive Officer of the
36
company SILIC ) and Alain SCHMITT (Manager of the SME Competitiveness and Development Department at the
DGCIS).
36 Until January 2014
| 49
In compliance with Commercial code article L. 823-19, the Audit and Risk Committee does not include members with
Management functions within the company, and at least one of them has specific skills in financial or accounting
matters and is independent in view of the criteria indicated in article 6.2.1 of the Rules of Procedure (corresponding
with the independence criteria of the Afep Medef Code).
In 2013, the Audit and Risk Committee met five times and included the presence of the General Inspector – Audit, of
the Risk Permanent Controller, the Statutory auditors and the Government Commissioner.
All of its quarterly meetings discussed the evolution of the company’s risks and financial situation. It examined the
group’s financial statements to 31 December 2012 and 30 June 2013, and the update of the memorandum on
financial activities. It also reviewed the follow-up of recommendations made by the General Inspection and Audit
Department (IGA). It was given a presentation on the internal control report, the 2014 audit programme, the review of
the customer outstandings and the tracking of the limits. It was updated on the contributions made as part of the setup of the Bpifrance group and of the capital increase project for Bpifrance Financement, subsequent to these
contributions. Moreover, it took note of the joint request from the State and the Caisse des Dépôts to Bpifrance
Financement, for the latter to take over the commitments of the Caisse des Dépôts, as part of the refinancing, with a
pool of banks, of the loans associated with the construction and acquisition of a cruise ship. Finally, as part of the
implementation of the Single Supervision Mechanism for which it is responsible, it was informed that the European
Central Bank will review the portfolio of Bpifrance.

The Appointments and Compensation Committee
The task of the Appointments and Compensation Committee is to provide the Board of Directors with opinions on all
proposals relating to the appointment of the Chairman, of the Executive Vice Presidents and of the Senior Managers,
and the recruiting of members of the Executive Committee, as well as on the determination and any change of any
component of their compensation. Finally, it provides an opinion on all compensation and incentive arrangements for
the Bpifrance Financement personnel and on the hiring, dismissal or signing of settlement agreements involving any
employee whose gross annual compensation is more than €250,000.
Chaired by Jean-François ROUBAUD, it consists of three members: Sébastien RASPILLER (member of the Board of
Directors, appointed by proposal from the State), Delphine of CHAISEMARTIN (member of the Board of Directors,
appointed by proposal from the Caisse des Dépôts) and Jean-François ROUBAUD (member of the Board of Directors
who meets the independence criteria according to the Afep Medef Code).

The “Business line” committees
There are two “business line” Committees: the Financing-Guarantee Committee and the Innovation Committee. As
consultative bodies, their missions are defined by the Rules of Procedure and consist of preparing the decisions of the
Board of Directors, notably on technical topics related to financing, guarantee and innovation business lines
(determination of the multiplying coefficients, investment policy for the guarantee funds, budget forecasts…).
The “Innovation” Committee
Chaired by Pierre PRIEUX, the Innovation Committee has three members drawn from the directors and non-voting
members, namely: Alain SCHMITT (appointed by proposal from the State), Thomas ESPIARD (applied by proposal
from the Caisse des Dépôts), and Pierre PRIEUX (who meets the independence criteria according to the Afep Medef
code).
The Innovation Committee also includes a panel of experts: François JAMET (Ministry of Research), Guillaume
PRUNIER (DGCIS), Laetitia DUBOIS (Budget Department) and Laurent GUERIN (General Department of the
Treasury), appointed by a proposal from the State; Anatole NEF and Philippe DEWOST, appointed by proposal from
the Caisse des Dépôts; and Armelle WEISMAN (Director of the company Trois Temps) and Judith GRECIET
(General Manager of BioAlliance Pharma), by proposal from the Chairman of the Board of Directors.
The “Financing-Guarantee” Committee
Chaired by Albert BOCLÉ, the Financing-Guarantee Committee consists of three members appointed from amongst
the directors and non-voting members: Sébastien RASPILLER (appointed by proposal from the State), Thomas
ESPIARD (appointed by proposal from the Caisse des Dépôts), and Jean-François ROUBAUD (who meets banking
sector competence criteria, appointed by proposal from the Chairman of the Board of Directors).
The “Financing-Guarantee” Committee also includes a panel of experts: Edouard BLOCH-ESCOFFIER (Budget
Department), Laure MENETRIER (DGCIS), Etienne SMALL (General Department of the Treasury) and Albert BOCLÉ
(Sales and marketing director of the Société Générale Retail Bank in France), appointed by proposal from the State;
Delphine de CHAISEMARTIN and the Fédération Bancaire Française, appointed by the Caisse des Dépôts; and BNP
Paribas, the Crédit Agricole, the CM-CIC and the BPCE Group, appointed by proposal from the Chairman of the
Board of Directors.
4.1.4. Limitations of the powers of the General Manager by the Board of Directors
The General Management of the Bpifrance Financement company is provided by the Chairman of the Board of
Directors. The Chairman and Chief Executive has the broadest possible powers in order to act, in all circumstances,
in the company’s name. The CEO exercises these powers within the limits of the corporate purpose and subject to the
powers that the law expressly attributes to the meetings of the shareholders and to the Board of Directors. He/she
represents the company in its relations with third parties.
As part of the internal order, the powers of the Chairman and Chief Executive and, if relevant, of the Executive Vice
Presidents are limited by article 12.3 of the company’s articles of incorporation. Pursuant to this article, certain
decisions relative to the Bpifrance Financement company or, if relevant, to any one of its subsidiaries require the prior
authorisation of the Board of Directors.
4.2. The internal control mechanism
Approved as a lending institution, Bpifrance Financement is subject to all of the provisions of the Monetary and
Financial Code and of regulation 97-02 from the Consultative Committee on Legislation and Financial Regulation with
regard to internal control.
4.2.1. The organisation and operation of the Bpifrance Financement internal control
The internal control system takes in, on the one hand, the permanent control mechanism that is the responsibility of
the directors, management, Risks Permanent Control Department (DCPR) and the Permanent Controllers within the
operational departments, and, on the other hand, the periodic control system provided by the Bpifrance General
Inspection and Audit department (IGA).

The Bpifrance Group’s overall internal control system is governed by an Internal control charter, that provides an
overall description of the components and objectives.
Two specific charters, together with their application procedures, organise the efforts firstly of the DCPR, and
secondly of the General Inspection and Audit (IGA) Department. They were approved by the General Manager,
presented to the Audit and Risks Committee, and then disseminated.

The permanent control system refers to all of the procedures, systems and verifications implemented by an
institution in order to ensure the compliance of its operations, its adherence to the laws and regulations, as well
as the marketplace rules and ethics, in addition to its control of the risks of all kinds to which it is exposed.
It corresponds with the systems described in article 6a) of regulation n° 97-02. It notably includes the systems
described in the regulation’s sections II, III, IV and V, relative to the control of operations and of internal
procedures, to the accounting organisation and the processing of information, to the risk measurement systems
and the results, to the surveillance systems and the risk control.
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
A “Risk” department was set up in 2011, with coordination entrusted to the DCPR.
The Risk Committee, chaired by the General Manager, holds quarterly meetings involving the main business lines
in charge of risk management, measurement and control. It provides surveillance of the main risks inherent to the
activities of Bpifrance Financement or its subsidiaries.

As part of the periodic control, the General Inspection and Audit department verifies the quality and proper
operation of the permanent control system. It neither defines nor manages this system, but contributes to
improving it through the recommendations that it formulates. This responsibility corresponds with the provisions
found in article 6b) of the amended regulation 97-02.

The bodies involved in internal control are the Bpifrance Financement Audit and Risks Committee, as well as two
specific committees: the Internal Control Committee and the Risks Committee.
The permanent control and risk functions are associated with their respective sectors, the Compliance department Permanent control and Risks department. On behalf of the Bpifrance group, each of them ensures the coherence of
the business line and of its organising principles.

Risk Permanent Control
The Risk Permanent Control perimeter includes:




a verification of the Commitments and business line risks: it ensures compliance with the regulations and
standards specific to the Bpifrance Financement business lines.
compliance: it looks after measuring the risk resulting from new products and legal actions, while providing a
written opinion as to their compliance.
the efforts to combat money laundering and terrorist financing.
ethics.
Permanent control itself consists of two levels.
The first permanent control level is based on all of the participants looking after operational tasks and/or functional
responsibilities. They must firstly see to the proper execution of the tasks and to the rigorous control of the risks falling
into their activity domain. This requires:

vigilant compliance with a certain number of principles: a clear organisation based on documented, secure and
verifiable procedures, the independence of the various functions, of the commitment and scheduling, of the
posting / payment and control, and the availability of relevant, objective and verifiable information.

the implementation of follow-up and steering tools that will make it possible to justify the proper control of the
activities undertaken as part of the delegated competencies.
The second permanent control level, exercised on a continual basis, is performed by employees exclusively
dedicated to this permanent controller function.
To ensure the independence relative to the operational business lines and periodic control, the Risks Permanent
Control Director reports to the Bpifrance Financement General Manager.
If a department’s size or its risk level does not justify the creation of a full time permanent controller position, a
Permanent Control correspondent is appointed in order to serve as the relay with the Risks Permanent Control
Department (DCPR), and to directly carry out the verification.
The Permanent Control Director coordinates the activities of the Bpifrance Financement permanent control managers
and correspondents, in order to ensure consistency and efficiency.
The Charter and the Permanent control procedures – Risks.
The Bpifrance Financement Permanent control charter stipulates the objectives and methodology of the controls.
The Risks Permitting Control Director harmonizes the verification methodologies and the control reports produced by
the sector’s controllers.
An annual control plan defines the verifications having to be performed, and their frequency. It is determined together
with the permanent control managers and correspondents, and in collaboration with the Operational departments.
The control plan is validated by the Internal Control Committee then implemented by the Risks Permanent Control
Director.
An IT tool is available in order to ensure the follow-up of the implementation of the recommendations by the
departments in question, and to produce reports.
The annual summary on changes to the system
Each year, the General Management submits the internal control, risk measurement and monitoring report for the
approval of the various supervisory bodies. This report is then communicated to the Prudential Control and Resolution
Authority, the profession’s national control body.
The report traces the main changes to the internal control system, whether with regard to credit risk, market risk, risks
relating to the preparation of accounts or operational risks (including relative to the security of information systems).
The system intended to Combat Money Laundering and Terrorist Financing is also described therein. Working with
the HRD, the DCPR has continued with training and awareness-raising actions for all of the employees, using an “elearning” procedure.
The system implemented by the DCPR is regularly audited and updated in keeping with national and European
directives, for all of the Bpifrance Financement business lines.
In 2013, the permanent control verifications involved all Bpifrance Financement business lines, with regard to the
financing, guarantee and innovation activities, as well as the head office’s operational departments.
By means of examining documents, they generally focused on the compliance with procedures, the management and
compliance of the operations, the data quality, the security or confidentiality of the management or IT processes, the
formalization of the first level controls, and the follow-up of the recommendations from the DCPR as well as the
General Inspection and Audit department’s recommendations.

Periodic Control
The operation of the General Inspection and Audit Department (IGA), in charge of the Bpifrance Financement periodic
control, is based on the following principles and processes:

An Audit charter describes the aims, powers, responsibilities and organisation of this Department, as well as the
general rules applicable to the periodic control. It is completed by a procedure that defines the relations existing
between the IGA and audited units, during a mission.

An annual and multi-year audit plan, based on the Bpifrance organisation and the organisational chart that
describes it, plans the content and perimeter of the IGA’s mission, with the objective of covering all activities and
subsidiaries within a maximum interval of three years. For each domain, the rhythm of the missions is determined
by the combination of its risk level and an audit frequency.
The annual audit plan is validated by the General Manager, the Executive Committee and by the Audit and Risk
Committee.

A reference base describes the IGA’s operation and the implemented methodologies, which combine on-site
controls and/or document verifications, and lead to findings from which recommendations result. The missions
revolve around an analysis of the components of the audited domain’s permanent control system and an
assessment of the risk levels, with reference to article 6 b) of regulation 97-02.
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
The mission ends with a report, together with a list of recommendations. The above are managed using a
dedicated tool, that looks after the total preparation and production of reports. These recommendations are
implemented by audited units, under the responsibility of their management. The management periodically
reports to the IGA, during the latter’s three annual follow-ups, regarding its progress and it must justify their
complete realisation.

A mission is only closed once all of the recommendations have been implemented.

The IGA reports to the Bpifrance Financement executive and deliberating bodies on the performance of the audit
plan, the conclusions of the completed verifications and the implementation of the recommendations.
In 2013, as part of its audit plan, the General Inspection and Audit Department carried out several missions involving
Departments at the head office or within the network, involving all or some of their activities.
Three campaigns to follow up the implementation of recommendations were also carried out, in February, June and
October. A special verification was made of the reliability of the responses received from the departments, and their
considerable reliability was confirmed.
Moreover, several inspections or studies were carried out in 2013, by the Court of Auditors or the InspectorateGeneral for Finance. They related to certain of the group’s contributions to the public mechanisms for the support and
development of SMEs.
With regard to Alsabail, the specialised lending institution in which Bpifrance Financement is the reference
shareholder, the General Inspection and Audit Department carried out a mission in 2013 as part of the periodic control
agreement signed in 2011 between Alsabail and Bpifrance.

Outlook for 2014
The permanent control plan set up by the Risks Permanent Control Department (DCPR) calls for verifications in all of
the company’s business lines (innovation, guarantee, financing and investment), as well as in the head office
departments.
They will relate to the application of the procedures, the performance of the first level controls, the data quality, the
security of the processes, the implementation of the recommendations...
To ensure that it has a relevant and efficient map of the group’s risks, the DCPR will coordinate the update – by
operational departments – of their Risk Steering Systems (SPR) and prepare a consolidation process.
In 2014, the General Inspection and Audit Department’s audit plan calls for missions that will include several head
office departments in their entirety, for all or certain of their activities.
Verifications will also involve all of the Network Departments, as well as the subsidiaries, including Alsabail. At the
same time, three follow-up campaigns will be launched with all departments in order to measure the implementation
of the recommendations, while the reliability of the responses received from the departments will be the subject of a
specific audit.
4.3. Development and processing of accounting information
4.3.1. The general framework of accounting and financial information
The Bpifrance Financement financial statements are prepared in accordance with the accounting regulations
applicable to lending institutions.
Bpifrance Financement drafts individual financial statements using the French accounting standards, and
consolidated financial statements using the IFRS international accounting reference base.

The financial statements to be published
The balance sheet, income statement and off-balance sheet that describe the individual financial statements are
prepared each month. These commented documents are disseminated to the Finance Department and to the
Management Control department.
The consolidated financial statements of Bpifrance Financement are finalised at the end of June, September and
December.
At the end of March, the financial statements of the Group’s companies are aggregated; this allows an overall followup of the major profitability aggregates, without requiring all of the heavy consolidation treatments. As of 2014, the
consolidated financial statements will be produced on a quarterly basis.
The financial statements drawn up at the end of June include simplified notes to the financial statements and are
accompanied by a half-year activity report. These documents are subject to limited review by the statutory auditors
and are published in the French Legal Gazette (BALO).
The financial statements for the year to 31 December include a full set of notes to the financial statements and are
verified by the Statutory auditors. The Audit Committee examines the financial information and the accounting internal
control. The annual financial statements are drawn up by the Board of Directors and submitted to the General Meeting
of the Shareholders for approval. They are then deposited with the Clerk of the Commercial Court and published in
the BALO. These financial statements serve as the basis for the reference document submitted to the French
Financial Markets Authority (AMF).

Accounting “scoreboards”
On a quarterly basis, accounting tables are prepared on the basis of these consolidated and individual statements.
On these “scoreboards”, the structure of the balance sheets, off-balance sheet and income defined by regulations are
respected. Certain particularly significant headings are detailed in order to cast a more analytical light on the activity.
The accounting “scoreboards” and interim financial statements are presented to the Audit and Risk Committee and to
the Board of Directors. They are completed by an analytical presentation of the formulation of the income.

Analysis on the calculation of the operating result (profit or loss)
This analysis is performed at the consolidated level by Management Control. For the “financing” sector, it relies on
allocating each commercial use with a conventional rate of resources that is based on the market rates. This analysis
system identifies the contribution of the NBI (Net Banking Income) of each commercial activity within this sector
(cofinancing, short-term financing, capital development. It is completed by an analysis on the earnings of the
“guarantee” sector and of the “innovation” sector. This work is supplemented by an analysis on the risk cost during the
elapsed period.
A forecast of the annual income figure is made on the same basis.
All of these figures are presented to the next meetings of the Board of Directors and Audit and Risk Committee. The
presentation includes a commentary on the main charges and divergences from forecasts.

Other reports
In addition, within the framework of the SURFI (Unified Financial Reporting System) and of FINREP statements, an
accounting report is submitted to the Prudential Control and Resolution Authority, in accordance with the banking
regulation in force.
Bpifrance Financement is fully consolidated into Bpifrance’s accounts. It therefore completes a half-yearly
consolidation package which is approved by its Statutory Auditors.
| 55
4.3.2. Accounting architecture and organisation
The Bpifrance Financement accounting is integrated within the Bpifrance Accounting Department.
The Accounting Department includes:

a cross-functional Consolidation and FINREP domain in charge of the consolidated financial statements of the
EPIC BPI-Groupe, of the SA BPI-Groupe and of Bpifrance Financement,

a cross-functional section in charge of accounting standards and IT practices, that notably has cross-functional
competence with regard to harmonisation and the definition of the accounting standards and applied procedures,

an interbank flows section in charge of managing movements of funds,

a division in charge of the corporate accounting of Bpifrance Investissement and Bpifrance Participations,

a division in charge of the bank-related accounting, which notably looks after the preparation of the corporate
financial statements of Bpifrance Financement
The latter division includes four domains:




Accounting and taxation production
Reporting
Innovation and financing business plan accounting and
Guarantee business plan accounting.
The business plan accounting services are responsible for the accuracy of the accounting entries transferred to the
general accounting. Entries are generated via an interpreter which captures reports of events from the management
systems.
All accounting services are located at the Maisons-Alfort head office. Depending on the concerned products, certain
inputs into management systems may be made by regional offices. However, accounting controls and processing
operations are reunited at the head office.
Through its participation in the finance division’s Management Committees, ALM committees, the Counterparty risk
committees, and the marketing committees, the Accounting Department is informed of the policy adopted in the areas
of financial management and administration.
The Finance division’s permanent control service is in charge of the second level accounting controls.
4.4. Statutory auditors’ report on the Chairman’s Report
Bpifrance Financement SA
Public limited company with capital of €750,860,784
Registered office: 27-31 avenue du Général-Leclerc. 94710 Maison-Alfort
TCR: 320 252 489
Statutory auditors’ report prepared in application of article L. 225-235 of the [French]
Commercial code, on the report from the Chairman of the Board of Directors of the
Bpifrance Financement SA company
Financial year ending on 31 December 2013
KMPG AUDIT
MAZARS
| 57
Bpifrance
Financement SA
Statutory auditors’ report prepared in application of article L. 225-235 of the [French]
Commercial code, on the report from the chairman of the board of directors of the
Bpifrance Financement SA company
Statutory auditors’
report prepared in
application of article
L. 225-235 of the
[French] Commercial
code
To the shareholders,
In our capacity as Statutory auditors of the Bpifrance Financement SA company and pursuant to
the provisions of article L.225-235 of the [French] Commercial Code, we present to you our
report on the report drafted by your company’s Chairman in compliance with the provisions of
article L. 225-37 of the [French] Commercial Code relative to the fiscal year closed on 31
December 2013.
The Chairman is responsible for preparing, and submitting for the approval of the board of
directors, a report on the internal control procedures and risk management efforts implemented
within the company, and that also provides the other information required by article L.225-37 of
the [French] Commercial code, notably with regard to the corporate governance system.
It is our responsibility to:
- present our observations resulting from the information given in the chairman’s report
regarding the internal control and risk management procedures relative to the preparation and
processing of the accounting and financial information, and
- certify that the report includes the other information required by article L. 225-37 of the
[French] Commercial code, it being understood that we are not required to verify the
truthfulness of such other information.
We have conducted our tasks in accordance with the professional standards applicable in
France.
Bpifrance
Financement SA
Information regarding the internal management and risk management procedures relative
to the preparation and processing of the accounting and financial information
report prepared in
L. 225-235 of the
[French] Commercial
code
Professional standards require that we perform due diligence reviews in order to assess the
truthfulness of the information given in the Chairman’s report, regarding the internal control and
risk management procedures relative to the preparation and processing of the accounting and
financial information.
These efforts notably entail that we:
-
review the internal control and risk management procedures relative to the preparation and
processing of the accounting and financial information that underpins the information
presented in the Chairman’s report, as well as the existing documentation;
-
review the works that led to the preparation of the said information and of the existing
documentation;
-
determine if the major internal control deficiencies relative to the preparation and processing
of the accounting and financial information that we may have brought to light as part of our
examination are properly indicated in the Chairman’s report.
On the basis of these works, we have no observations to submit regarding the information
provided on the internal control and risk management procedures relative to the preparation and
processing of the accounting and financial information as contained in the report from the
Chairman of the board of directors, prepared in application of the provisions of article L. 225-37
of the [French] Commercial Code.
| 59
Bpifrance
Financement SA
report prepared in
L. 225-235 of the
[French] Commercial
code
Other information
We hereby certify that the report from the Chairman of the board of directors includes the other
information required by article L. 225-37 of the [French] Commercial code.
Signed in Paris La Défense and Courbevoie, on 17 April 2014
The Statutory auditors
KMPG AUDIT
Department of KPMG SA
Philippe SAINT-PIERRE
MAZARS
Virginie CHAUVIN
1 - Resolutions of an ordinary nature

First resolution
The Ordinary General Meeting approves the report from the Board of Directors on the company’s situation and activity
over the fiscal year that elapsed between 1 January and 31 December 2013 and all operations discussed therein.

Second resolution
After having reviewed the Board of Directors report and the report on the annual financial statements provided by the
Statutory auditors, the Ordinary General Meeting approves the corporate financial statements to 31 December 2013,
as presented to it.

Third resolution
After having reviewed the Board of Directors report and the report on the consolidated financial statements from the
Statutory Auditors for the fiscal year ending on 31 December 2013, the Ordinary General Meeting approves the
consolidated financial statements for fiscal 2013 as presented to it.
The general meeting takes note that the expenses not fiscally deductible (article 39-4 of the General Tax Code) and
incurred by the Company during the financial year ending on 31 December 2013 are equal to €821,336 and
correspond only with the fraction of the non-deductible lease payments on leased vehicles. The amount of the
corresponding tax expense is €312,108.
The General meeting grants discharge to the directors and members of the Board of directors for the performance of
their terms of office for the fiscal year ending on 31 December 2013.

Fourth resolution
The Ordinary General Meeting decides to allocate earnings for the financial year 2013 as follows:
Euros
Earnings for the year to be distributed
Retained earnings
Available balance
Transfer to the legal reserve
Allocation to the other reserves
Distribution of a dividend of €0.10 per share
(face value of €8)
Retained earnings (credit)
12,758,863.88
46,585,169.25
59,344,033.13
637,943.19
0.00
9,385,759.80
49,320,330.14
On a fiscal level, in compliance with the applicable provisions, this dividend does not include a tax credit, but it gives
the right, for natural person shareholders with their fiscal residence in France, to apply for a tax reduction calculated
on its entire amount.
The dividend must be paid no later than 30 September 2014 (Art. L. 232-13 and R.232-18 of the [French] Commercial
code), and will be paid to the shareholders registered as of the ex-dividend date.
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In compliance with the legal provisions, it is recalled that a dividend of €0.09 per share was paid for fiscal 2010, that a
dividend of €0.17 per share was paid for fiscal 2011, and that a dividend of €0.10 per share was distributed relative to
fiscal 2012.

Fifth resolution
The Ordinary General Meeting acknowledges and approves the special report of the Statutory Auditors on
agreements covered by articles L. 225-38 et seq of the [French] Commercial code.
As such, the General Meeting of the shareholders approves the Assignment of securities agreement signed in 2013
between Bpifrance Financement and Bpifrance Investissement, as mentioned in the Statutory Auditors’ special report
on agreements covered by articles L 225-38 et seq of the Commerce Code.

Sixth resolution
The Ordinary General Meeting, after having reviewed the Board of Directors’ Report, decides to ratify the co-optation
of Catherine HALBERSTADT as director as replacement for the company OSEO Régions for the remaining duration
of the term of the latter, i.e. until the meeting called in 2008 in order to vote on the financial statements for the fiscal
year ending on 31 December 2017.
Catherine HALBERSTADT indicates that she accepts this appointment and is not subject to any incompatibility.

Seventh resolution
of Marie-Christine LEVET as director as replacement for the company OSEO Industrie for the remaining duration of
the term of the latter, i.e. until the meeting called in 2018 in order to vote on the financial statements for the fiscal year
ending on 31 December 2017.
Marie-Christine LEVET indicates that she accepts this appointment and is not subject to any incompatibility.

Eighth resolution
of Jean-François ROUBAUD as director as replacement for the company BPI-Groupe for the remaining duration of
the term of the latter, i.e. until the meeting called in 2018 in order to vote on the financial statements for the fiscal year
Jean-François ROUBAUD indicates that he accepts this appointment and is not subject to any incompatibility.

Ninth resolution
The Ordinary General Meeting, consulted pursuant to article L. 511-73 of the Monetary and Financial Code, after
having reviewed the Board of Directors’ report, issues a favourable opinion regarding the overall envelope of the
compensation of all kinds amounting to €1,243,450.36, paid during the fiscal year ending on 31 December 2013 to the
persons indicated in article L. 511-71 of the Monetary and Financial Code, i.e. 4 full-time equivalent persons.

Tenth resolution
The Ordinary General Meeting grants all powers to the bearer of originals, excerpts or copies of the present minutes
in order to perform all required formalities related to filings and disclosures.
2 - Resolutions of an extraordinary nature
2.1 Capital increase in cash

Eleventh resolution
The Extraordinary General Meeting, after having reviewed the Board of Directors report on the operation’s conditions,
and finding that the capital is paid up, decides, provided that the following resolution is adopted by the extraordinary
general meeting, to increase the issued capital by the sum of nine million fifty-five thousand three hundred sixty euros
(€9,055,360) in order to increase it from seven hundred fifty million eight hundred sixty thousand seven hundred
eighty-four euros (€750,860,784) to seven hundred fifty-nine million nine hundred sixteen thousand one hundred fortyfour euros (€759,916,144) by means of issuing one million one hundred thirty-one thousand nine hundred twenty
(1,131,920) shares each with a face value of 8 euros, each of which is to be paid up in cash or by offset with
unquestionable, liquid and due claims against the company.
These new shares will be issued at the price of twenty-eight euros and ninety-eight cents (€28.98), with an issue
premium of twenty euros and ninety-eight cents (€20.98). The shares must be entirely paid up at the time of their
subscription.
Subscriptions will be received from 15 May 2014 to 19 May 2014, at the company’s head office.
The new shares will be created with full rights as of 1 January 2014. On the final fulfilment date of the capital
increase, they will be entirely fungible with the existing shares and will be subject to the statutory provisions and
decisions of the general meetings.

Twelfth resolution
The Extraordinary General Meeting, after having reviewed the Board of Directors’ special report and the statutory
auditors’ special report, decides to terminate the pre-emptive subscription right of the shareholders for the entire
capital increase that is the subject of the previous resolution for the benefit of the SA BPI-Groupe.
2.2 Capital increase reserved for employees

Thirteenth resolution
The Extraordinary General Meeting, after having reviewed the Board of Directors’ report and the statutory auditors’
special report, and acting in order to comply with the provisions of article L.225-129-6 of the Commercial code relative
to the capital increase reserved for the SA BPI-Groupe that is the subject of the previous resolutions:
1. confers upon the Board of Directors, using its sole and unique decision, all powers in order to carry out, or not, on
one or more occasions and under the conditions indicated in articles L. 3332-18 to L. 3332-24 of the Labour
Code, a cash increase of the issued capital in a maximum amount of 3% of the capital on 31 December 2014,
reserved for the members of a company savings plan or of a group savings plan;
2. decides that the present delegation is granted for a period of twenty-four months as of the current day;
3. decides that the subscription price for the shares will be set in compliance with the provisions of article L.3332-20
of the Labour code;
4. confers upon the Board of Directors all powers in order to implement the present delegation, and therefore to:
-
determine the seniority conditions required to participate in the operation, within the legal limits, and if
relevant, the maximum number of shares that can be subscribed per employee,
set the number of shares to be issued as well as their possession date,
set the timeframes and provisions for the new shares to be paid up,
determine the realisation of the capital increase(s) and carry out the corresponding modifications to the
articles of association
| 63
-
carry out all operations and formalities rendered necessary by the realisation of the capital increase(s)
5. Acknowledges that this delegation includes, for the benefit of the members of a company savings plan or of a
group savings plan mentioned above, the express waiver of the shareholders regarding their preferential
subscription right to the shares that will be issued.

Fourteenth resolution
The Extraordinary General Meeting grants all powers to the Board of Directors in order to take note of the fulfilment of
the two capital increases in accordance with the above provisions, to carry out the operations that contribute to this
fulfilment, notably carrying out the corresponding modification of article 6 of the articles of incorporation relative to the
issued capital.

Fifteenth resolution
The Extraordinary General Meeting grants all powers to the bearer of an original, a copy or an excerpt of the minutes
of the present general meeting in order to perform all legal filing and disclosure formalities.
6.1. Functional organisational chart
| 65
6.2. Organisational chart of the network
FINANCIAL RESULTS FOR THE PAST 5 FISCAL YEARS
2009
2010
2011
2012
2013
377 230
064
47 153 758
594 778
400
74 347 300
594 778
400
74 347 300
750 860
784
93 857 598
750 860
784
93 857 598
1 357 437
1 614 176
1 711 483
1 853 727
1 885 234
I- Capital at year end
a) Capital (in euro equivalent)
b) Number of shares issued
II - Operations and results for the fiscal year (in € thousands)
a) Pre-tax turnover
b) Pre-tax earnings (loss), mandatory or
voluntary profit-sharing and allowances
for amortisations and provisions
102 590
196 115
64 140
150 009
176 925
c) Profit tax
d) Mandatory or voluntary employee profit-sharing
payable for the fiscal year
e) Earnings (loss) after tax, mandatory or
16 191
23 388
14 757
38 873
23 973
3 917
6 335
6 240
6 480
7 652
f) Income paid as dividends
18 899
11 788
99 066
6 691
3 756
15 956
12 835
9 386
12 759
9 386
a) b) Earnings (loss) after tax, mandatory or
voluntary profit-sharing but before
depreciation allowances and provisions
1,75
2,24
0,58
1,12
1,55
b) Earnings (loss) after tax, mandatory or
c) Dividend attributed to each share
0,40
0,25
1,33
0,09
0,05
0,17
0,14
0,10
0,14
0,10
974
59 078
1 641
91 670
1 641
100 697
1 655
100 584
1 677
100 187
26 768
42 936
43 679
47 664
47 387
III- Earnings per share (in €)
IV- Headcount
a) Number of employees on 31 December
b) Total payroll (in € thousands)
c) Amount of the sums paid relative to
social benefits (Social security,
charitable works, etc.)
| 67
Consolidated financial statements
Publishable consolidated balance sheet of Bpifrance Financement
ASSETS (in millions of euros)
Notes 31/12/2013 31/12/2012
Cash, central banks
6.1
173,5
115,0
Financial assets at fair value through profit or loss
6.2
72,9
81,5
Derivative hedge instruments
6.3
367,1
503,9
Non-current assets available for sale
6.4
218,8
472,0
Loans and receivables due from credit institutions
6.5
460,0
394,5
Loans and receivables due from customers
6.6
18 829,9
15 557,0
Finance lease and equivalent operations
6.7
5 289,1
4 821,8
Innovation financing aids
6.8
614,9
645,4
297,9
486,0
Revaluation discrepancies of the rate-hedged portfolios
Financial assets held to maturity
6.9
6 634,1
5 349,3
Current and deferred tax assets
6.10
34,6
56,0
Accruals and miscellaneous assets
6.11
1 570,5
1 316,5
Non-current assets held for sale
0,0
0,0
Interests in companies accounted for using the equity method
8,7
7,7
Investment property
6.12
12,0
12,3
Tangible fixed assets
6.13
102,6
80,7
Intangible fixed assets
6.13
46,8
41,4
0,5
0,0
34 733,9
29 941,0
Goodwill
TOTAL ASSETS
Publishable consolidated balance sheet of Bpifrance Financement
LIABILITIES (in € millions)
Notes 31/12/2013 31/12/2012
Central banks
6.1
0,0
3,0
Financial liabilities at fair value through profit or loss
6.2
5,0
5,1
6.3
432,2
593,4
Due to credit institutions
6.14
11 179,6
10 345,1
Debts due to customers
6.15
2 568,5
2 577,0
Debt securities
6.16
9 442,2
5 572,6
229,1
412,1
Revaluation discrepancies of the rate-hedged portfolios
Current and deferred tax liabilities
6.10
20,0
1,8
Accrued expenses and other liabilities
6.11
3 148,6
2 850,3
0,0
0,0
Debts related to non-current assets intended to be sold
Provisions
6.17
1 660,6
1 759,8
Net innovation intervention resources
6.18
1 005,0
951,4
Public guarantee funds
6.19
2 296,5
2 159,2
Subordinated debts
6.20
14,6
14,7
Shareholders equity
2 732,0
2 695,5
Group share of shareholders equity
- Capital et réserves liées
- Réserves consolidées
- Gains et pertes comptabilisés directement en capitaux propres
- Résultat
2 712,4
1 700,2
937,8
15,7
58,7
2 665,1
1 700,2
849,5
17,3
98,1
19,6
18,3
1,3
30,4
28,4
2,0
34 733,9
29 941,0
Minority interests
- Réserves
- Résultat
TOTAL LIABILITIES
| 69
Bpifrance Financement publishable consolidated consolidated profit and loss statement
(in millions of euros)
Notes
31/12/2013
31/12/2012
Interest income
7.1
1 179,1
1 502,4
Interest and similar expenses
7.1
-770,2
-1 079,7
9,2
14,2
-0,6
-0,4
Commissions (income)
Commissions (expenses)
Net gains or losses on financial instruments at fair value
through profit or loss
7.2
-1,4
1,7
Net gains or losses on financial assets available for sale
7.3
4,6
4,6
Income from other activities
7.4
95,4
120,9
Expense on other activities
7.4
-35,3
-57,6
480,8
506,1
7.5
-275,4
-270,8
7.6
-21,9
-18,9
183,5
216,4
-75,7
-64,7
107,8
151,7
Share of net income from companies accounted for using the equity method
0,1
0,7
Net gains or losses on other assets
0,0
0,0
Changes to the value of the goodwill
0,0
0,0
107,9
152,4
-47,9
-52,3
0,0
0,0
60,0
100,1
1,3
2,0
GROUP SHARE OF NET INCOME
58,7
98,1
* Earnings per share (in euros)
0,63
1,04
* Diluted earnings per share (in euros)
0,63
1,04
NET BANKING INCOME
Operating general expenses
Amortisation & depreciation allowances on tangible & intangible
fixed assets
GROSS OPERATING EARNINGS
Cost of risk
7.7
OPERATING INCOME
PRE-TAX EARNINGS
Corporation tax
Income net of taxes from discontinued activities or activities undergoing
disposal
NET INCOME
Minority interests
7.8
Net earnings and gains and losses recognised directly
in the Bpifrance Financement shareholders equity
NET INCOME
31/12/2013 31/12/2012
60,0
100,1
Elements that could be reclassified through net profit or loss
Revaluation of the financial assets available for sale
Revaluation of derivative hedge instruments
Translation differences
Share of unrealised or deferred gains or losses on
companies accounted for using the equity method
-2,4
0,0
0,0
-3,2
0,0
0,0
0,0
0,0
0,0
-0,4
0,0
0,0
0,0
0,0
-2,8
-3,2
57,2
96,9
57,1
0,1
94,7
2,2
Elements that could not be reclassified through net profit or loss
Revaluation of fixed assets
Actuarial gains and losses on defined benefit plans
Share of unrealised or deferred gains or losses on
companies accounted for using the equity method
TOTAL GAINS AND LOSSES DIRECTLY RECOGNISED
IN THE SHAREHOLDERS EQUITY
NET EARNINGS AND GAINS AND LOSSES
RECOGNISED
DIRECTLY IN THE SHAREHOLDERS EQUITY
* Of which group share
* Of which minority interests
| 71
Change of the shareholders equity (group share)
Situation to 31 December 2011
Gains and
losses
Capital
directly
and
Reserves recognised
related
in the
reserves
shareholders
equity
Allocation
Total
1 161,3
761,7
20,7
2011 earnings
Earnings allocated to reserves
0,0
82,5
0,0
98,4
-82,5
98,4
0,0
Change to the gains and losses directly
recognised in the shareholders equity
0,0
0,0
-3,4
0,0
-3,4
Value change of financial
instruments, affecting the shareholders
equity
0,0
0,0
-2,1
0,0
-2,1
0,0
0,0
0,0
0,0
1,1
-1,3
0,0
0,0
0,0
-15,9
0,0
-1,3
-15,9
1,1
0,0
0,0
538,9
1 700,2
4,2
0,0
0,0
849,5
0,0
0,0
0,0
17,3
2012 earnings
Earnings allocated to reserves
0,0
88,7
0,0
98,1
-88,7
98,1
0,0
Change to the gains and losses directly
recognised in the shareholders equity
0,0
0,0
-1,2
0,0
-1,2
0,0
0,0
1,4
0,0
1,4
0,0
0,0
-2,6
0,0
-2,6
0,0
-0,2
-0,4
0,0
0,0
0,0
-9,4
0,0
-0,4
-9,4
-0,2
Value change of financial instruments
as related to the earnings
Distribution of dividends
Acquisition / disposal of treasury shares
Avenir Entreprises & Avenir Tourisme
capital reduction
Miscellaneous
SA OSEO capital increase
Value change of financial
instruments, affecting the shareholders
equity
Value change of financial instruments
as related to the earnings
Actuarial gains and losses on defined
benefit plans
Distribution of dividends
Acquisition / disposal of treasury shares
Avenir Entreprises & Avenir Tourisme
capital reduction
Miscellaneous
Reserve fund interest
2013 earnings
0,0
0,0
0,0
0,0
1 700,2
-0,9
0,7
937,8
0,0
0,0
15,7
0,0 1 943,7
0,0
4,2
0,0
0,0
0,0
538,9
0,0 2 567,0
0,0
-0,9
0,0
0,0
0,0
0,7
0,0 2 653,7
58,7
58,7
Variation in minority interests
Minority interests on 31 December
2011
Change to the gains and losses directly recognised in the shareholders equity
Value change of financial instruments, affecting the shareholders equity
Value change of financial instruments as related to the earnings
Change in interest percentages
Avenir Entreprises & Avenir Tourisme capital reduction
Share of earnings on 31 December 2012
2012
Change to the gains and losses directly recognised in the shareholders equity
Value change of financial instruments, affecting the shareholders equity
Value change of financial instruments as related to the earnings
Change in interest percentages
Avenir Entreprises & Avenir Tourisme capital reduction
Share of earnings on 31 December 2013
2013
31,5
0,2
0,8
-0,6
0,0
-3,3
2,0
30,4
-1,2
-0,1
-1,1
-6,8
-4,1
1,3
19,6
Cash flow table
The cash flow table is presented using the indirect method model.
The operational activities are representative of the activities that generate earnings for the group, which includes the
assets inventoried in the portfolio of investments held until maturity.
The tax flows are entirely presented with the operational activities.
The investment activities represent the cash flows for the acquisition and disposal of interests in the consolidated
and non-consolidated companies, tangible and intangible assets, and buildings held for investment. This compartment
includes the strategic equity securities listed in the portfolio of “Financial assets available for sale”.
The financing activities result from the changes related to the financial structure operations involving the
shareholders equity and the long- term borrowing.
The notion of net cash includes the cash, liabilities and debts with central banks and postal accounts, as well as the
demand accounts (assets and liabilities) and loans with lending institutions.
| 73
Bpifrance Financement group table of cash flows
Pre-tax earnings
Net depreciation/amortisation expense on property, plant and equipment and
intangible assets
Depreciation of the goodwill and other fixed assets
Net allocations to provisions
Share of the earnings related to companies accounted for using the equity method
Net loss / net gain from investment activities
Other movements
Other movements (specific to the guarantee funds)
Total of the non-monetary elements included in the net income before taxes, and of the other
adjustments
Flows related to operations with credit institutions
Flows related to operations with the clientele
Flows related to other operations affecting the financial assets or liabilities
Flows related to other operations affecting the non-financial assets or liabilities
Flows related to the other operations affecting the innovation activity
Taxes paid
Net decrease / (increase) of the assets and liabilities resulting from operational activities
Total net cash flows generated by the operational activity (A)
31/12/2013 31/12/2012
107,9
152,4
22,2
0,0
-170,9
-0,1
1,2
-18,0
468,0
19,3
0,0
-205,7
-0,7
1,0
-129,5
355,4
302,4
39,8
789,0
-3 801,3
-1 049,3
-108,3
84,2
-40,7
-4 126,4
9,2
-6 709,0
3 427,4
336,4
-38,9
-16,5
-2 991,4
-3 716,1
-2 799,2
-8,2
0,0
-49,2
-57,4
1,5
0,0
-23,2
-21,7
-15,3
3 870,2
3 854,9
523,9
2 480,4
3 004,3
0,0
81,4
0,0
183,4
-3 716,1
-57,4
3 854,9
-2 799,2
-21,7
3 004,3
0,0
382,0
0,0
198,6
Cash, central banks (assets & liabilities)
Accounts (asset and liability) and demand loans / borrowing with lending
institutions
Cash and cash equivalents upon closing
112,0
0,1
270,0
463,4
198,5
382,0
Cash, central banks (assets & liabilities)
Accounts (asset and liability) and demand loans / borrowing with lending
institutions
Change in net cash position
173,4
112,0
290,0
81,4
270,0
183,4
Flows related to financial assets and equity interests
Flows linked to investment buildings
Flows related to the tangible and intangible fixed assets
Total net cash flow related to investment operations (B)
Cash flows coming from or going to the shareholders
Other net cash flows coming from financing activities
Total net cash flow related to financing operations (C)
Effects of exchange rate variations on the cash and
cash equivalent (D)
Net increase / (decrease) of the cash and cash equivalents (A + B + C + D)
Net cash flows generated by the operational activity (A)
Net cash flow related to investment operations (B)
Net cash flow related to financing operations (C)
Effects of exchange rate variations on the cash and
cash equivalent (D)
Cash and cash equivalents upon opening
Accounting appendix
 NOTE 1 - SIGNIFICANT EVENTS DURING THE FISCAL YEAR AND EVENTS AFTER THE CLOSING
76
 NOTE 2 - APPLICABLE ACCOUNTING STANDARDS
76
 NOTE 3 - PREPARATION PRINCIPLES FOR THE GROUP CONSOLIDATED FINANCIAL STATEMENTS
77
 NOTE 4 - SCOPE OF CONSOLIDATION
80
 NOTE 5 - ACCOUNTING PRINCIPLES AND VALUATION METHODS
81
 NOTE 6 - NOTES TO THE BALANCE SHEET
99
 NOTE 7 - NOTES RELATIVE TO THE PROFIT AND LOSS STATEMENT
118
 NOTE 8 - EXPOSURE, MANAGEMENT AND MEASUREMENT OF RISKS
122
 NOTE 9 - DISCLOSURE OF INTERESTS IN OTHER ENTITIES
142
 NOTE 10 - PERSONNEL BENEFITS AND OTHER REMUNERATION
143
 NOTE 11 - SECTOR-SPECIFIC INFORMATION
150
 NOTE 12 - FINANCING AND GUARANTEE COMMITMENTS
151
 NOTE 13 - OTHER INFORMATION
151
| 75

1.1

Note 1 - Significant events during the fiscal year and events after the closing
Significant events during the fiscal year
Establishment of Bpifrance
Law n°2012-1559 of 31 December 2012 amending order n°2005-722 of 29 June 2005 established the
legal framework providing for the creation of the Banque Publique d’Investissement (BPI), as well as
its governance provisions. Holding company held by the EPIC BPI-Groupe for 50% and by the Caisse
des Dépôts (CDC) for 50%, it includes OSEO, CDC Entreprises (CDCE) and the Fonds Stratégique
d’Investissement (FSI – Strategic Investment Fund).
The contribution operations were performed on 12 July 2013. As on 31 December 2013, BPI-Groupe
(Bpifrance) holds:



89.7% of the capital of Bpifrance Financement (former SA OSEO);
100% of the capital of CDCE-1 (company holding 99.4% of Bpifrance Investissement – former
CDCE);
100% of the capital of Bpifrance Participations (former FSI).
As such, the reference shareholder of the credit institution Bpifrance Financement is henceforth BPIGroupe (Bpifrance), that has the status of a financial company as replacement for the EPIC BPIGroupe. The rest of the capital is primarily held by banks within the market.

Transfer of all assets and liabilities of OSEO Industrie
As part of the group restructuring, the Board of Directors meeting on 26 June 2013 authorised the
dissolution, through the transfer of all assets and liabilities without liquidation of OSEO Industrie, a
100% subsidiary of Bpifrance Financement that occurred in the 3rd quarter of 2013.
1.2
Events after the closing
No significant event occurred after the closing date of the financial statements.


Note 2 - Applicable accounting standards
Applicable accounting standards on 31 December 2013
The 2013 consolidated financial statements are prepared in compliance with the IFRS reference base
as adopted by the European Union and applicable on 31 December 2013.
The new standards applicable as of 1 January 2013 are:
-
The amendment to the IAS 1 standard relative to the presentation of financial statements, that
breaks down the “other elements of the overall earnings” between elements that can and cannot
be reclassified through profit or loss. The implementation of this amendment results only in a
presentation impact.
-
The amendment to the IAS 19 standard relative to personnel benefits, that requires actuarial gains
and losses to be posted directly in the shareholders equity, and the rate of return of first category
bonds to be used as the rate of return for the hedging assets. The insignificant impact of the
application of this amendment on the group’s financial statements is presented in note 10.
-
The IFRS 13 standard relative to fair value valuation, that replaces the provisions relative to fair
value included in all other IFRS standards. The main scope of this standard is the consideration of
the counterparty risk on derivative assets and liabilities that, in view of the characteristics of the
operations performed by the group, has an insignificant impact on the financial statements. The
IFRS 13 standard also requires the presentation of additional information in the notes to the
financial statements.
-
The amendment to the IFRS 7 standard relative to the information to be provided on financial
instruments, which requires a presentation of information on the offset rights and corresponding
agreements.
Moreover, the group decided to apply early, on 1 January 2013, the following standards that must be
applied as of 1 January 2014:
-
The IFRS 10 standard relative to the notion of control, that strengthens the recourse to judgment
as part of its assessment. The application of the standard has an insignificant impact on the
group’s financial statements.
-
The IFRS 11 standard relative to partnerships, that distinguishes two types of joint arrangements
(joint activity and joint venture) according to the nature of the rights and obligations of the partners,
and discontinues the option for the application of the proportional integration method. The
application of the standard has an insignificant impact on the Bpifrance Financement component.
-
The IFRS 12 standard relative to the information to be presented in the appendix for all
subsidiaries, partnerships, associated companies as well as for structured entities whether
consolidated or not.
-
The amendment to the IAS 28 standard 28 relative to equity interests in associated companies
and joint ventures, that takes into account the modifications resulting from the publication of the
IFRS 10 and IFRS 11 standards.

Accounting standards applicable as of 1 January 2014
The European Union has adopted new standards that will take mandatory effect as of 1 January 2014.
With the exclusion of the ones listed above, they will be not applied early by the group on 31
December 2013.
The group is in the process of analysing the possible incidences of the application of these standards
on the consolidated financial statements.

Note 3 - Preparation principles for the group consolidated financial statements
Pursuant to regulation EC n° 1606/2002, the group’s consolidated financial statements are prepared
using the international IAS/IFRS accounting standards in effect within the European Union as on 31
December 2013.
| 77
3.1

Consolidation principles
General principle
The group decided on the early application of EU regulation n° 1254/2012 of 11 December 2012
relative to the approval of the standards IFRS 10 “Consolidated financial statements”, IFRS 11
“Partnerships” and IFRS 12 “Disclosure of interests in other entities” and of the modification of the
standards 27 “Separate financial statements” and IAS 28 “Investments in associates and joint
ventures” for which the application is mandatory at the latest on the opening date of their first fiscal
year after 1 January 2014.
The Bpifrance Financement group consolidated financial statements include all of the companies
under that it controls or over which it has significant influence, except ones for which the consolidation
would be of a negligible nature relative to the preparation of the group’s consolidated financial
statements. Pursuant to this general principle, the material nature of this impact can notably be
assessed by means of various criteria such as the size of the earnings or shareholders equity of the
company that is to be consolidated relative to the earnings or shareholders equity of the consolidated
whole.

Notion of control
The notion of control is assessed irrespective of the nature of the links between the group and the
entity that is the subject of an investment. Control applies when the group is exposed or is entitled to
variable yields and that it has the ability to influence these yields as a result of the power that it holds.
The group therefore controls a subsidiary if and only if all of the following elements are gathered:
-
The group exercises power when it is in possession of the actual rights to direct the
subsidiary’s relevant activities,
The group is exposed or is entitled to variable yields, when the yield can vary according to the
subsidiary’s performance.
The group has the ability to exercise power such as to influence the amount of the variable
yields that it obtains.
Joint control is the contractual sharing of the control exercised over a partnership which can be either
a joint activity or a joint venture. Joint control only exists if the decisions regarding the relevant
activities require the unanimous approval of the parties sharing control.
Significant influence is the power to participate in decisions relative to the associate’s financial and
operational policies, but without exerting control or joint control over the these policies. This situation is
presumed when the group directly or indirectly holds 20% or more of the voting rights. It can also
result, for example, from representation within the Board of directors or an equivalent management
body, participation in the process for the preparation of policies, significant transactions between the
group and the associate, exchange of management personnel or supply of sensitive technical
information.

Special case of the venture capital activity
When an equity interest in an associate (significant influence) or a joint venture (joint control) is held
via a venture capital organisation, the group has chosen to assess this participation at fair value on the
basis of the net income, in the category “Financial assets at fair value through profit or loss”, in
compliance with IAS 39.
3.2
Consolidation methods
The consolidation methods result from the nature of the group’s control over the entities that can be
consolidated, irrespective of their activity.
The accounts of companies that are totally controlled, including the companies with different account
structures, are consolidated according to the full consolidation method.
The accounts of companies that the group controls together with another co-investor are consolidated
using the equity method.
The accounts of companies in which the group exercises notable influence are consolidated on an
equity basis.
3.3

Consolidation rules
Restatements and eliminations
Restatements needed for the harmonisation of the assessment methods of the consolidated
companies are carried out.
Reciprocal receivables, debts and commitments, as well as reciprocal expenses and income are
completely eliminated for the totally integrated companies. Intra-group dividends, provisions on
consolidated securities, capital gains on internal disposal operations and exceptional depreciation are
entirely neutralized for integrated companies in their entirety, and equal with the share held with
regard to companies accounted for using the equity method.

Goodwill
The acquisition cost is equal to the total of the fair values, on the acquisition date, of the delivered
assets, net of accrued or assumed liabilities and of the shareholders equity instruments issued in
exchange for control of the acquired entity. The costs directly related to the operation are booked as
expenses, except the expenses for the issuing of equity interests that are deducted from the
shareholders equity, as well as the direct costs of the transaction related to financial debts contracted
as part of the operation that are deducted from the corresponding financial debts.
The identifiable assets, liabilities, possible liabilities and off-balance sheet elements of the acquired
entities are recognised at their fair value on the acquisition date. This initial assessment can be refined
within 12 months of the acquisition date.
The positive discrepancy between the entity’s acquisition cost and the acquired share of the net
assets revalued in this way is listed as an asset in the consolidated balance sheet, under the heading
“Goodwill” when the acquired entity is globally integrated, or under the heading “Interests in
companies accounted for using the equity method” when the acquired company is accounted for using
the equity method. When the discrepancy is negative, it is immediately recorded in the profit or loss.
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In the event of an increase of the percentage of the group’s interest in an already controlled entity, the
additional acquisition of securities results in the recognition of additional goodwill, determined by
comparing the acquisition price of the securities and the net share of the acquired assets.
When the recoverable value is less than the book value, an irreversible depreciation of the goodwill is
recorded through profit or loss. The recoverable value is generally valued according to the discounted
cash flows method.
3.4

Presentation of the financial statements and closing date
Presentation of the consolidated financial statements
The employed presentation of the interim reports is compliant with the one proposed by
recommendation n°2013-04 of 7 November 2013 from the Accounting Standards Authority (ANC)
relative to the format of the consolidated financial statements of banking sector establishments
according to the international accounting standards.

Closing date
All companies included in the scope of consolidation close their annual financial statements on 31
December.

Note 4 - Scope of consolidation
The Bpifrance Financement group scope of consolidation to 31 December 2013 changed relative to
the last closing of the consolidated financial statements on 31 December 2012.
It globally includes the financial statements of OSEO’s real estate company SCI, a property
investment company for which the consolidation is no longer negligible with regard to the preparation
of the group’s consolidated financial statements.
Using the equity method, it now includes the financial statements of the insurance brokerage GRAS
SAVOYE AUXI ASSURANCE, acquired in H1 2013.
It no longer includes the financial statements of the company OSEO Industrie, dissolved by transfer of
all assets and liabilities, as indicated in note 1.1.
The following table identifies the companies included in the scope of consolidation, the percentage of
their capital held directly and indirectly, and the method by which they are consolidated.
Designation
Bpifrance Financement (formerly Oséo SA)
Oséo Industrie (*)
Bpifrance Régions (formerly Oséo Régions)
AUXI-CONSEIL
AUXI-FINANCES
AVENIR ENTREPRISES
INVESTISSEMENT
AVENIR TOURISME
FCT PROXIMITE PME
Compagnie Auxiliaire Bpifrance
(formerly Compagnie Auxiliaire Oséo)
SCI D'OSEO
Alsabail
Gras Savoye Auxi Assurance
Consolidation 31/12/2013
method
holding %
31/12/2013 31/12/2012
% of
% of
voting
voting
rights
rights
Full
n/a
Full
Full
Full
100%
98,99%
100%
100%
100%
98,99%
100%
100%
100%
100%
52,49%
100%
100%
Full
73,22%
73,22%
73,22%
Full
Full
58,19%
50%
58,19%
50%
58,19%
50%
Full
100%
100%
100%
Full
100%
100%
-
40,69%
40,69%
40,69%
34,00%
34,00%
-
Equity
method
Equity
method
(*) Oséo Industrie was dissolved by transfer of all assets and liabilities of to Bpifrance Financement on 4 September 2013.
After the consolidation adjustments, the bonus of €2.970 million related to this operation has no impact on the earnings

5.1
Note 5 - Accounting principles and valuation methods
Determination of the fair value
The IFRS 13 standard establishes the framework for determining the fair value and provides
information on how to assess the fair value of assets and liabilities, both financial and non-financial.
This corresponds with the price that would be received for the sale of an asset or paid for the transfer
of a liability during a normal transaction between market participants on the valuation date. The fair
value is therefore based on the exit price.
At the time of initial recognition, a financial instrument’s value is normally the negotiation price (i.e. the
value of the consideration paid or received).
During subsequent valuations, the fair value of the assets and liabilities must be estimated and
determined while using, as a priority, observable market data, while ensuring that all of the parameters
comprising this fair value align with the price that “market participants” would use during a transaction.
5.1.1 Hierarchy of the fair values
The three levels of fair value
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The standard defines three levels of fair value for financial and non-financial instruments:
Level 1: valuation using market quotations on a liquid market. This involves instruments for which the
fair value is determined from quotations on active markets.
Level 2: valuation using observable market data. This fair value level includes instruments listed on an
inactive market, and instruments valued using a valuation technique on the basis of parameters that
are either directly observable (price) or indirectly observable (price derivative).
Level 3: valuation using non-observable market data. This level includes instruments valued using
unknown valuation models and/or that are based on parameters that are not observable on the
market, provided that they would be likely to significantly affect the valuation.
Transfers of fair value levels
Transfers between fair value levels can occur when the instruments meet classification criteria in the
new level, with these criteria being dependent on market conditions and products. Changes of the
observability, the passage of time and events affecting the life of the instrument are the main factors
that can result in transfers. Transfers are considered to have occurred at the end of the period.
5.1.2 Assessment techniques
General framework
The best estimate corresponds with the instrument’s market price when the latter is handled on an
active market (prices listed and disseminated). The group uses the price offered for the fair value of a
long position (asset) and the requested price for a short position (debt).
In the absence of a market or of reliable data, the fair value is determined using an appropriate
method that complies with the assessment methodologies used on the financial markets: benchmark
at the market value of a comparable instrument, valuation models and, more generally, discounting of
the estimated future flows.
The fair value amounts of financial assets and liabilities represent the estimates made on the closing
date. These amounts are subject to change in other periods depending on the changes to market
conditions or other factors. The completed calculations are based on a certain number of hypotheses.
In practice, and for the purposes of business continuity, not all of these financial instruments will be
the subject of an immediate realisation for the estimated value.
The consideration of the risk of non-execution on derivative liabilities (Debit Value Adjustment) and of
the assessment of the counterparty risk on derivative assets (Credit Value Adjustment) has no
significant incidence on the fair value valuation of the group’s derivatives.
Special case of unlisted shares
The market value of unlisted shares is determined by comparison with recent transactions involving
the capital of the company in question, carried out with an independent third party and under normal
market conditions. In the absence of such a reference, the valuation is determined either with the help
of commonly used techniques (EBIT or EBITDA multiples), or on the basis of the share of the net
assets going to the group, calculated from the most recent available information.
Special case of financial assets and liabilities recognised at cost
Moreover, in a certain number of cases, the market values come close to the book value. This notably
relates to:
 variable rate assets or liabilities for which interest changes have no notable influence on the
fair value, since the rates of these instruments are frequently adjusted to the market rates;
 operations for which there is no reliable observable data.
5.2
Financial assets and liabilities
Financial assets and liabilities are handled according to the provisions of the IAS 39 standard as
adopted by the European Union on 19 November 2004 (EC n° 2086/2004) and completed by the
regulation of 15 November 2005 (EC n° 1864/2005), relative to the use of the fair value option.
The effective interest rate is the rate that exactly discounts the disbursements or collections of the
future cash flows over the anticipated lifespan of the financial instrument.
The group recognises all loans and borrowing in the balance sheet on the settlement date. All
derivative instruments are recognised in the balance sheet on the trading date.
5.2.1. Loans and receivables
Loans and receivables that are not held for trading purposes or that are not intended for sale as of
their acquisition or granting are listed in the balance sheet amongst the “Loans and receivables owed
by lending institutions” or “Loans and receivables owed by the clientele”, depending on the nature of
the counterparty. After their initial recognition, they are assessed at their amortised cost on the basis
of the effective interest rate and can, if relevant, be the subject of a depreciation.
Interest accrued on receivables is included in the related receivables account with changes
recognised in the profit and loss statement.
Impairment of receivables
Receivables are impaired when, after the set-up of the loan, there are one or more objective signs of
impairment, for which the impact on the future cash flows can be reliably measured.
Impairment on an individual basis
The established nature of the risk is assessed on an individual basis. A risk is established when it is
probable that the establishment will not collect all or part of the sums owed pursuant to the
commitments assumed by the counterparty, notwithstanding the existence of a guarantee or surety.
The adopted criteria when considering an outstanding that shows a recognised credit risk correspond
with the following situations:
 there are one or more overdue instalments aged at least three months (three months for
personal property credit and leasing and six months for real estate loans),
 the establishment is aware of the degraded financial situation of the counterparty, which is
represented by a risk of non-collection,
 claim and collection procedures are in place between the institution and its counterparty.
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The impairment is equal to the difference between the asset’s book value and the value discounted at
the original effective interest rate of the future cash flows estimated to be recoverable, while taking
effective guarantees into account. The amount of this impairment is recognised as a “Risk charge” in
the profit and loss statement, and a financial asset’s value is reduced by the establishment of an
impairment loss.
Impairment on a collective basis
The counterparties for which there is no objective indication of individual impairment are the subject of
an analysis by uniform portfolios. The existence of a credit risk involving a uniform set of receivables
results in the recording of impairment, without waiting for the risk to have individually affected one or
more receivables.
The methodology implemented by the group is primarily based on an analysis of the internal ratings of
the overall portfolio. The assessment model for collective depreciations is based on simulations of
stochastic scenarios that, with each counterparty, associate a possible default date and a loss rate
given default. Previously, collective depreciations were provisioned on the basis of loss rates per
product resulting from market practices.
5.2.2. Financial assets and liabilities assessed at fair value through profit or loss
Financial assets and liabilities held for trading purposes
Financial assets and liabilities held for trading purposes are assessed on the basis of their fair value
on the closing date and included in the balance sheet under the heading “Financial assets or liabilities
at fair value through profit or loss”. Fair value variations are recorded in the period’s income under the
heading “Net gains or losses on financial instruments at fair value through profit or loss”.
Financial assets and liabilities assessed at fair value on option
Added to the financial assets and liabilities held for trading purposes are the financial assets and
liabilities that the group has designated, from inception, for valuation at fair value with changes
recognised in the profit and loss statement, in application of the option provided by the IAS 39
standard. The purpose of the group’s application of the fair value option is:
- firstly, the elimination or significant reduction of gaps between the between the accounting processes
used with certain financial assets and liabilities,
- secondly, the fair value assessment of certain hybrid financial elements without separation of the
incorporated derivatives.
5.2.3. Financial assets held to maturity
The category of “Financial assets held to maturity” includes investments with fixed or determinable
payments and fixed maturity, that the Group has the intention and ability to hold until maturity.
Operations to hedge interest rate risks possibly carried out with this category of securities are not
eligible for the hedge accounting defined by the IAS 39 standard.
Securities included in this category are recognised at their amortised cost using the effective interest
rate method, which includes the amortisation of premiums and discounts corresponding with the
difference between the acquisition value and the redemption value of the securities, as well as the
acquisition cost of the securities, if significant. Earnings collected and accrued on these securities are
shown under the profit and loss statement heading “Interest and related income”.
5.2.4. Non-current assets available for sale
The category of “Financial assets available for sale” includes the fixed or variable income securities
not included in the previous categories.
The securities available for sale are initially recognised at their acquisition price, with transaction costs
directly attributable to the acquisition and accrued coupons included. On the closing date, they are
assessed at fair value and any variations to this value, excluding accrued income, are shown on a
separate line in the shareholders equity (“Unrealised or deferred gains or losses”). Upon disposal or
write-down of these securities (in case of permanent write-down), these unrealised gains or losses are
transferred from shareholders equity to the profit or loss statement, where they are shown on the line
“Net gain / loss on financial assets available for sale”.
Earnings accrued on fixed income securities are recognised at their amortised cost according to the
effective interest rate method, which includes the amortisation of premiums and discounts
corresponding with the difference between the acquisition value and the repayment value of the
securities, as well as the acquisition cost of the securities, if significant. Earnings collected and
accrued on these securities are shown under the profit and loss statement heading “Interest and
related income”.
The earnings from variable income securities are recorded under the heading of “Net gains or losses
on financial assets available for sale”.
5.2.5. Repurchase agreements
Securities temporarily sold as part of a repurchase agreement continue to be recorded in the Group’s
balance sheet, in their original portfolio. The corresponding liability is recognised under the appropriate
“Debts” heading.
Securities temporarily purchased as part of a reverse repurchase agreement are not recognised in the
Group’s balance sheet. The corresponding receivable is recognised under the heading of “Loans and
Receivables”.
5.3
Debts
Debts issued by the group and which are not categorised as financial liabilities assessed as a
counterparty in the profit and loss statement are initially recorded at their cost, which corresponds with
the fair value of the amounts borrowed, net of transaction costs. These debts are assessed at their
impaired cost on the closing date by using the effective interest rate method and are recorded in the
balance sheet in the “Debts to lending institutions”, and “Debts to the clientele” or in the “Debts
represented by a security”.
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Debts to lending institutions and Debts to the clientele
The debts to lending institutions and the clientele are broken down according to their initial duration or
the nature of these debts: debts repayable on demand (overnight loans, ordinary accounts) and term
borrowings for lending institutions; term borrowings, security deposits and ordinary accounts for the
clientele.
Interest accrued on these debts is included in the related debts account with changes recognised in
the profit and loss statement.
Debt securities
Debts evidenced by certificates are broken down according to their supports: interbank market
securities, negotiable debt instruments and bond loans, with the exclusion of subordinated securities
included amongst the “Subordinated debts”.
Interest accrued attached to these securities is included in a related debts account with changes
recognised in the profit and loss statement. Issue or repayment premiums on bond loans are
amortised using the effective interest rate method, over the lifespan of the loans in question. The
corresponding expense is listed in the “Interest and related expenses” in the profit and loss statement.
5.4
Subordinated debts
This heading includes debts, whether materialised in the form of a security or not, of fixed or open
duration, with which the repayment in case of the debtor’s liquidation is only possible after the other
creditors have been discharged.
These debts are assessed at their impaired cost on the closing date by using the effective interest rate
method. If relevant, accrued interest attached to subordinated debts is included in an account for
related debts, with changes recognised in the profit and loss statement.
This item also includes mutual guarantee deposits.
5.5
Derecognition of financial assets and liabilities
The group derecognises a financial asset upon the expiry of the contractual rights to receive the cash
flows linked to the financial asset, or when these contractual rights and almost all of the risks and
benefits inherent to the asset’s ownership have been transferred. If relevant, the rights and obligations
created or retained during the transfer are recognised separately as assets or liabilities.
At the time of the complete derecognition of a financial asset, a disposal gain or loss is recorded in the
profit and loss statement in an amount equal to the difference between this asset’s book value and the
value of the consideration received, with possible correction for any unrealised profit or loss that might
previously have been recognised directly in the shareholders equity.
The group derecognises a financial liability only when this financial liability has been completely
extinguished, i.e. when the obligation indicated in the contract has been extinguished, cancelled or
arrives at maturity.
5.6
Derivative financial instruments and hedge accounting
Derivative financial instruments are recognised at their fair value. With each accounts closing date,
irrespective of the management intention applicable to their retention (trading or hedging), they are
assessed at their fair value.
With the exception of derivatives considered as cash flow hedging for accounting purposes, fair value
variations are recognised in the period’s profit and loss statement.
Derivative financial instruments are grouped into two categories:
Transaction derivatives
Transaction derivatives are included in the balance sheet under the heading “Financial liabilities at fair
value through profit or loss”. Realised or unrealised gains or losses are recorded in the profit and loss
statement under the heading “Net gains or losses on financial instruments at fair value through profit
or loss”.
Hedging derivatives
To be able to use a hedge derivative instrument for accounting purposes, it is necessary to document
the hedge relation as of inception (hedge strategy, nature of the hedged risk, designation and
characteristics of the hedged element and of the hedge instrument). Moreover, the hedge’s efficiency
must be demonstrated at inception, and verified retrospectively at the time of each accounts closing
date.
Derivatives contracted as part of a hedging relationship are designated according to the purpose of
the hedge. The group currently only applies fair value hedge accounting.
Fair value hedging
The purpose of fair value hedging is to reduce the risk of any variation to the fair value of the asset or
liability in the balance sheet, or of a firm commitment (in particular, hedging of the rate risk from fixed
rate assets and liabilities).
The hedged element’s revaluation is recorded through profit or loss on a symmetrical basis with the
revaluation of the derivative. The hedge’s possible inefficiency therefore directly appears through profit
or loss.
Interest accrued from the hedge derivative is included in the profit and loss statement on a
symmetrical basis with the interest accrued from the hedged element.
With regard to the hedging of an identified asset or liability, the revaluation of the hedged component
is attached to the balance sheet by type of hedged element.
Should the hedge relation be interrupted (non-compliance with the efficiency criteria or sale of the
derivative or of the hedged element before maturity), the hedge derivative is transferred into the
trading portfolio. The revaluation amount listed in the balance sheet relative to the hedged element is
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amortised over the outstanding period relative to the initial hedge lifespan, as long as the former
hedged element remains recognised in the balance sheet.
Hived-off global hedging
The group’s preference is for the application of the provisions of the IAS 39 standard adopted by the
European Union (known as the “carve-out”) for micro-hedge operations carried out within the
framework of the asset-liability management of fixed rate positions.
These provisions make it possible to hedge the rate risk associated with loans with the clientele, or
with borrowing and securities portfolios. Micro-hedge instruments are primarily rate swaps intended for
fair value hedging of the group’s fixed rate usages and of its fixed or revisable rate resources.
The accounting treatment for hived-off global hedge derivatives uses the same principles as the ones
previously described as part of the fair value hedge. However, the overall revaluation of the hedged
component is included under the item “Revaluation discrepancies of the rate-hedged portfolios”. The
efficiency of the hedges is ensured prospectively by the fact that all derivatives, on their set-up date,
must serve to reduce the rate risk of the underlying portfolio of hedged securities.
Embedded derivatives
An embedded derivative is the component of a “hybrid” contract, whether financial or not, that
complies with the definition of a derivative product. It must be extracted from the host contract and
recognised separately if the hybrid instrument is not assessed at fair value for profit or loss, and if the
economic characteristics and risks associated with the incorporated derivative are not closely tied to
the host contract.
5.7
Impairment of securities
Securities, other than the ones listed as “Financial assets at fair value through profit or loss”, are
subject to an impairment as soon as there is an objective indication of impairment.
The impairment indicators for debt securities are, irrespective of their destination portfolio, identical
with the ones used as part of the assessment of the recognised risk for the impairment of receivables
on an individual basis.
Special case of “Financial assets available for sale”
As soon as there is an objective sign of a permanent impairment of a financial asset available for sale,
the impairment is noted with any change recognised in the profit and loss statement.
If a temporary decrease of the fair value of a financial asset available for sale has been recognised
directly on the specific shareholders equity line entitled “Unrealised or deferred gains or losses”, and if
there is subsequently an objective sign of a permanent impairment of this asset, the group records, in
the profit and loss statement, the total unrealised loss previously recognised in the shareholders
equity. They are recognised in “Risk cost” for debt instruments and under the heading “Net gains or
losses on financial assets available for sale” for variable income securities.
The amount of this total loss is equal to the difference between the acquisition cost (net of any
principal repayment and of any amortisation) and the current fair value, possibly less any impairment
loss on this financial asset that had previously been recognised through profit or loss.
Impairment losses recognised through profit or loss relative to a shareholders equity instrument listed
as available for sale are not written back through profit or loss. Once a shareholders equity instrument
has been impaired, any additional impairment loss constitutes an additional impairment. On the other
hand, for debt instruments, impairment losses are the subject of write-backs through profit or loss in
case of subsequent appreciation of their value. For equity instruments, impairments are booked in
case of an impairment loss of more than 30%, or over a period of more than 12 months. For debt
instruments, the impairment criteria are the same as the ones that apply to the impairment of loans
and receivables on an individual basis.
5.8
Financing commitments given and received
The financing commitments relative to the clientele are not included in the balance sheet.
Over the commitment period, a liability provision is recognised in case of probability of the
counterparty’s default
5.9
Distinction between debts and shareholders equity
Issued financial instruments are qualified as debt instruments or shareholders equity according to
whether or not there is a contractual obligation for the issuer to provide cash to the holders of the
securities.
Subordinate securities of indefinite duration
In view of the conditions set down by the IAS 32 standard relative to the presentation of financial
instruments in order to analyse the substance of these instruments, and given their intrinsic
characteristics, subordinate securities of indefinite duration issued by the group are qualified as debt
instruments.
Bpifrance Financement reserve fund
The reserve fund was set up by the shareholders of the former OSEO garantie; this advance is
intended to hedge the outstandings of the guaranteed loans for which it provides backing.
In view of the discretionary nature of the decision to pay interest to the bearers, as well as its
repayment if decided upon by the shareholders, the Bpifrance Financement reserve funds are
qualified as shareholders equity instruments.
5.10
Currency transactions
The accounting registration rules depend on the monetary or non-monetary nature of the elements
contributing to the foreign currency operations carried out by the group.
Monetary assets and liabilities denominated in foreign currencies
Monetary assets and liabilities denominated in foreign currencies are converted, using the closing
price, into the group’s operating currency, the euro. Exchange discrepancies are recognised through
profit or loss. However, this rule has two exceptions:
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 only the component of the exchange discrepancy on the amortised cost of the financial assets
available for sale is recognised through profit or loss, with the rest being recorded as gains and
losses directly recognised in the shareholders equity,
 the exchange discrepancies on monetary elements designated as cash flow hedging or that
are part of a net investment in a foreign entity are recorded as gains and losses directly
recognised in the shareholders equity.
Non-monetary assets expressed in foreign currencies
Non-monetary assets recognised at their amortised cost are assessed at the exchange rate on the
transaction date. Non-monetary assets recognised at fair value are assessed at the exchange rate on
the closing date. Exchange discrepancies on non-monetary elements are recognised through profit
and loss if the gain or loss on the non-monetary element is recognised through profit or loss, in the
gains and losses directly recognised in the shareholders equity if the gain or loss on the non-monetary
element is recognised in the equity capital.
5.11
Leasing operations are qualified as finance lease operations when they result in the de facto transfer
to the lessee of the risks and benefits related to the ownership of the leased asset. Failing that, they
are qualified as an operating lease.
Finance lease receivables are included in the balance sheet under the item “Finance lease and
equivalent operations” and represent the group’s net investment in the leasing contract, which is equal
to the discounted value at the contract’s implicit rate of the minimum payments that are to be received
from the lessee, plus any non-guaranteed residual value.
Finance lease operations are recorded in the balance sheet on the settlement / delivery date.
The interest included in the lease payments is recorded in the “Interest and related income” in the
profit and loss statement such as to be able to determine a constant periodic profitability rate for the
net investment. In case of the decrease of the non-guaranteed residual values used in the calculation
of the lessor’s gross investment in the finance lease contract, a charge is recorded in order to correct
the amount of the already determined financial products.
The Assets Temporarily Not Leased (ATNL) resulting from finance lease operations are likened to
stocks and are recorded as balance sheet assets under the heading “Accruals and miscellaneous
assets”. They are assessed at their net financial value on the termination date, net of possible
depreciations booked when the recovery value is lower than the financial net value on the termination
date.
5.12
Tangible and intangible assets
In compliance with the IAS 16 standard relative to tangible fixed assets and IAS 38 standard relative to
intangible fixed assets, a tangible or intangible fixed asset is posted as an asset if:
 it is probable that the future economic benefits associated with this asset will go to the
company,
 this asset’s cost can be reliably assessed.
Fixed assets are recorded at their acquisition cost, possibly increased by the acquisition expenses that
are directly attributable to them.
The group applies the asset recognition method by component to all of its tangible and intangible fixed
assets.
After initial recognition, the fixed assets are assessed at their cost, less the total of the amortisations
and impairment losses.
Fixed assets are depreciated according to the consumption duration of the expected economic
benefits, which generally corresponds with the asset’s lifespan. When one or more of a fixed asset’s
components have a different operational life or provide different economic benefits, these components
are amortised according to their own operational lives.
The following amortisation durations have been adopted:




software: from 1 to 5 years,
buildings: from 25 to 55 years,
fittings, furnishings and office equipment: from 4 to 10 years,
IT hardware: 4 years.
Fixed assets are the subject of an impairment test when signs of possible impairment losses are
identified on the closing date. If affirmative, the asset’s new recoverable value is compared with the
fixed asset’s net book value. In case of an impairment loss, a depreciation is noted through profit or
loss.
This depreciation is written back in case of modification of the recoverable value or the disappearance
of the signs of impairment loss.
5.13
Investment property
In compliance with IAS 40 standard relative to investment buildings, a real estate asset is recognised
in “Investment buildings” if it is held in order to obtain rental payments or develop the capital.
Investment buildings are assessed using the cost method.
Disposal capital gains or losses from investment fixed assets are listed through profit or loss on the
lines “Earnings from other activities” or “Expenses from other activities”, as are the other earnings and
related expenses (notably rents and depreciation allowances).
Provided for information purposes, the fair value of investment buildings, for its part, is estimated
based on “expert opinion”.
5.14
Personnel benefits
The Bpifrance group provides its employees with various types of benefits, falling into four categories:
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Short-term benefits
They primarily include salaries, holidays, mandatory and voluntary profit sharing, and bonuses
payable within 12 months of the closing of the fiscal year to which they pertain. They are recognised in
the expenses for the fiscal year, including the amounts still owed at the time of the closing.
Post-employment benefits
They include the retirement lump sum payments, the banking sector retirement supplements and
health expenses after employment.
These benefits fall into two categories: the defined contribution plans (not representative of a
commitment to be provisioned for the company) and the defined benefit plans (representative of a
commitment at the company’s expense and resulting in an assessment and provisioning).
Defined contribution plan
A defined contribution plan is a plan for post-employment benefits according to which an entity pays
defined contributions (as an expense) to a separate entity and will have no legal obligation to pay
additional contributions if the fund does not have sufficient assets to provide all of the benefits
corresponding with the services provided by the personnel during the periods in question.
Defined benefits plan
The obligations are assessed using an actuarial method that considers demographic and financial
assumptions such as age, seniority, the probability of presence on the date of the awarding of the
benefit, and the discounting rate (rate of return from the market for the bonds of high quality
companies).
This calculation includes a distribution of the expense over time on the basis of the activity period of
the personnel members (projected credit units method). The recognition of the obligations takes into
account the value of the assets established in order to hedge the obligations and actuarial elements.
The expenses relative to defined benefit plans consist of the cost of the benefits rendered during the
year, the interest on the liabilities or net assets relative to the defined benefits (at the market rate of
return of the bonds of high-quality companies), the contributions to the employer’s plans, and the
benefits paid.
The possible actuarial gains and losses (revaluations), the yields of the plan’s assets (excluding
interest) and the consequences of the reductions and possible liquidations of plans are booked in
other elements of the overall earnings.
Other long-term benefits
The long-term benefits are generally related to seniority, paid to employees who are still active, but
more than 12 months after the fiscal year’s closing. This primarily involves the bonuses for labour
medals.
These commitments are the subject of a provision that corresponds with the value of the commitments
at the time of the closing. They are assessed using the same actuarial method as the one applied to
the post-employment benefits.
For other long-term benefits, the cost of the benefits, the net interest on the liabilities (the assets) and
the revaluations of the liabilities (or assets) are booked in net income.
Cessation of employment compensation
This involves compensation paid to employees at the time of the termination of their employment
contract, prior to retirement, whether in case of dismissal or acceptance of a voluntary departure plan.
The end of employment contract allowances are provisioned. The benefits paid more than 12 months
after the closing date are the subject of discounting.
5.15
Provisions
A provision is established when it is likely that a resource outflow representing economic benefits will
be necessary in order to fulfil an obligation resulting from a past event and when the obligation’s
amount can be reliably estimated. The amount of such obligations is discounted in order to determine
the provision amount, when the impact of this discounting is material.
5.16
Current and deferred taxation, tax situation
Current taxation
The payable tax on profits is determined on the basis of the rules and rates applicable in France, as
the group companies are exclusively located in France.
Deferred tax
Deferred taxes are recognised when temporary differences are noted between the book value and the
tax value of an asset or liability.
The overall calculation method, which involves determining all of the temporary gaps irrespective of
the date when the tax will become payable or recoverable, has been adopted for the calculation of the
deferred tax.
The tax rate and rules used in the calculation of the deferred taxation are the ones resulting from the
applicable fiscal texts, which will be applicable when the tax becomes recoverable and payable.
Deferred taxes are compensated with one another on the level of each tax entity of the consolidated
group. Deferred tax debits are only taken into account if it is probable that the entity in question has a
recovery prospect over a determined horizon.
Deferred taxes are recognised as a tax income or expense in the profit and loss statement, except for
the ones relating to unrealised gains or losses on assets available for sale, and to the value changes
of derivatives designated as cash flow hedging, for which the corresponding deferred taxes are
charged against the shareholders equity.
Tax situation
| 93
Bpifrance Financement is the parent company of a tax integration group that includes the companies
Auxiconseil, Auxifinances and Compagnie Auxiliaire Bpifrance.
5.17
Interest income and expense
In compliance with ANC recommendation n° 2013-04 of 7 November 2013, the items “Interest and
related income” and “Interest and related expenses” record the interest from fixed income securities
recognised in the category of ”Financial assets available for sale”, the interest on loans / borrowing
and receivables / debts owed by lending institutions and the clientele (including on the finance lease
and equivalent operations). This item also records the interest on “Financial assets held until maturity”
and on the “Derivative hedge instruments”.
The income and expenses relative to financial instruments assessed at their amortised cost and to
fixed income assets included in the “Financial assets available for sale” are recognised in the profit
and loss statement using the effective interest rate method.
5.18
Commissions
The recognition provisions for the received commissions relating to services or financial instruments
depend on the purpose of the services rendered or the recognition method of the financial instruments
to which the service is attached.
Commissions remunerating an immediate service are recorded in the income as soon as the service is
completed.
Commissions collected as part of a continuing service, such as guarantee commissions and
management commissions, are staggered over the duration of the service on a proportional basis.
The commissions that are an integral part of the effective yield of an instrument, such as commissions
for financing commitments given or the commissions for the granting of loans, are recognised and
amortised as an adjustment of the loan’s effective yield over the estimated lifespan of the loan in
question, when these commissions are considered to be significant. These commissions are therefore
included in the “Interest and related income” rather than in the “Commissions” item.
5.19
Net gain / loss on financial instruments at fair value through profit or loss
This item records the gains or losses at fair value through profit or loss, whether qualified as trading or
fair value on option. It therefore primarily includes the fair value variations of derivatives, including
interest, not used for hedging. This also applies to fair value variations of derivative instruments used
for fair value hedging, but excluding interest.
5.20
The net gains or losses on financial assets available for sale primarily include the income from the
disposal of securities and the impairment losses on variable income securities. The impairment losses
on fixed income securities are recognised in the risk cost.
5.21
Salary and employee benefits expenses
The personnel costs include the wages and salaries, as well as the personnel benefits.
5.22
Cost of risk
The net allowances of write-backs for depreciation and provisions, receivables written off as losses
during the fiscal year, recoveries on amortised receivables comprise the risk expense on credit
operations.
Everything is recognised under the “Risk charge” heading of the profit and loss statement. This item
also includes the impairment losses of the “Financial assets available for sale” involving fixed income
securities.
5.23
Share of earnings of associates
All of the entities consolidated using the equity method are considered as having an operational nature
that proceeds from the group’s activity.
Consequently, the share in the net earnings of companies accounted for using the equity method is
presented after the operating earnings, in compliance with ANC recommendation n°2013-04 of 7
November 2013.
5.24
Guarantee activity
5.24.1. Guarantee commitments
A financial guarantee contract is a contract that requires the issuer to make specific payments in order
to repay the holder for a loss that it incurs due to the default of a specified debtor.
Most of the guarantee commitments are carried by Bpifrance Financement and Bpifrance Régions,
and are backed by guarantee funds. Information on the progress of the credit risk is primarily supplied
to the group by its banking partners.
When the group is informed of a customer default by a partner bank, the outstanding amounts are
classified as doubtful. A provision is calculated on the basis of statistical data on the valuation of the
recognised loss.
The mechanism for identifying doubtful commitments is based on the downgrading of the receivables
by the partner banks, and it applies the tainting principle for outstandings in default relative to the
guarantee commitments.
| 95
When the group is informed of the enforcement of its guarantee after a default event or the occurrence
of collective proceedings, the outstanding loans become compromised doubtful outstandings and a
provision is recognised. This provision is adjusted in order to account for the recovery potential on the
basis of statistical observations.
In compliance with the IAS 39 standard, financial guarantee contracts are initially assessed at their fair
value. Thereafter, in compliance with the provisions of the IAS 37 standard “Provisions, Contingent
Liabilities and Contingent Assets”, the non-recognised litigation is provisioned. The fair value of the
guarantees is assessed from internal default models, for bank loan guarantees, or from a maximum
compensation rate for own funds guarantee operations. With the exception of risks on own funds
operations, this assessment is discounted in order to take the time effect into account.
The IFRS 4 standard is not applied to insurance contracts.
The fair value of the guarantees is booked on the liabilities side of the balance sheet, under
“Provisions”.
The impact on the group’s earnings is nil as long as the associated guarantee funds are not used up,
as future non-recognised litigation is charged against the guarantee funds.
5.24.2. The guarantee funds
The guarantee funds are similar to reimbursable debt elements, the fair value of which is assessed by
deducting the anticipated losses pursuant to the guarantees provided by the group. Moreover, the
debt representing the preserved capital guarantee fund is assessed from an equivalent investment
rate that allows for the recognition, in the guarantee funds, of future financial earnings intended to deal
with any litigation pertaining to future production generations.
In view of their specificity and importance for the group, they are included as balance sheet liabilities in
a specific heading entitled “Public guarantee funds”.
The assessment of the guarantee funds also takes into account:
 the assessment of the future and non-recognised litigation representing the fair value of the
guarantees, as the latter is charged against the guarantee funds until used up,
 the discounting of the commissions to be received,
 the IFRS impacts on the assessment of the fixed income securities backing the guarantee
funds. Primarily classified as “Financial assets held until maturity”, the amortised cost
assessment of these securities leads to discrepancies relative to the reference base using the
French standards. This impact is charged against the guarantee funds since, by agreement,
90% of the income and expenses associated with these securities are attributable to the
guarantee funds.
All flows associated with the guarantee funds are recognised as income and expenses, though with no
impact on the group’s earnings.
Special case of the securities backing the guarantee funds and included in the “Financial
assets available for sale”
By principle, the securities included in the “Financial assets available for sale” are assessed at their
fair value, with the fair value variations from one fiscal year to the next being recognised in the
recyclable shareholders equity.
However, as 90% of the earnings derived from the securities are attributable to the guarantee funds by
agreement, only 10% of these fair value variations are recognised in the group’s recyclable
shareholders equity, with the remaining 90% being recognised in a specific heading of the liabilities
balance sheet, under the item “Accruals and miscellaneous liabilities”.
5.25
Innovation activity
The innovation activity involves allocating subsidies or repayable advances on behalf of the State or of
public partners. This activity is entirely financed by:
-
an allocation known as the State’s “intervention allocation”, structured as the Intervention
guarantee fund,
allocations from the local authorities.
These allocations are recorded on the line “Net innovation intervention resources”.
Such aid takes the shape of subsidies or of repayable advances in case of the project’s success, with
the effect in the profit and loss statement being compensated by the recovery of the intervention
allocation.
In all, in terms of the method for the resources, the absence of compensation as well as the operating
mode adopted for the depreciations, the innovation activity’s operating account should be balanced,
thereby conveying the fact that all of the risk is carried by the State or the local authorities.
As such, the IAS 20 standard: “Accounting for government grants and disclosure of government
assistance” applies to the innovation operations.
Repayable advances are recognised in the “Innovation financing aids” item on the asset side of the
balance sheet. Any advances not disbursed are not recognised in the balance sheet, and are
contained in the off-balance sheet commitments.
Subsidies are recognised directly in the expenses, under the “Expenses on other activities” item.
Subsidies granted to companies but not yet disbursed are shown on the liability side of the balance
sheet in the “Accruals and miscellaneous liabilities” item, or are recognised in the off-balance sheet
until their granting has been contractualized.
The intervention allocations (State and partner financing) are recognised on the liabilities side of the
balance sheet in the “Net innovation intervention resources” item once the State or the other partners
have signed the agreements. They are used to finance the subsidies and repayable advances and are
written back through profit or loss in keeping with the granting of subsidies to the beneficiaries and the
occurrence of findings of failures or of the recognition of the depreciation and losses of repayable
advances.
Individual depreciations are recognised as deductions from the repayable advances when there is a
recognised risk of non-recovery of all or part of the commitments assumed by the counterparty.
| 97
Moreover, collective impairments are calculated on the production of repayable advances financed by
the State’s intervention allocation, and correspond with a financial indicator that allows for an
assessment of the possible amount of the repayable advances that may have to be booked as
expenses in the future profit and loss statements. When the risk becomes recognised, a
reclassification is carried out between the collective impairment and the individual impairment.
Individual and collective impairments established in this manner are recognised in the expenses in the
profit and loss statement (“Expenses on other activities”). Symmetrically, the allocation consisting of
the State’s intervention and the partner financing is booked as a counterparty of this item.
Reversals of individual and collective impairment occur:
 when the impaired repayable advances finally become irretrievable and are recognised as
expenses,
 when the impairment reversal results from a repayment of the advance.
In the case of an impairment reversal, the liabilities are replenished accordingly.
Pursuant to the IAS 20 standard, the proceeds and expenses allocated to the Guarantee funds are
offset within the profit and loss statement, under the “expenses on other activities” item. Note 6.18
includes the amount of the expenses and proceeds in question.
5.26
Cash and cash equivalents
The cash and cash equivalents heading includes the cash in hand and demand deposits, the very
liquid short-term investments (under 3 months) that are easily convertible into a known cash amount
and that are subject to a negligible risk of changing value. The cash equivalents are held in order to
deal with short-term cash commitments.
The cash equivalents consist of current accounts, overnight borrowings and loans, cash accounts, and
central bank.
5.27
Usage of estimates in the preparation of the Financial Statements
The preparation of the financial statements requires the formulation of hypotheses and estimates that
include uncertainties with regard to their future realisation. Using information available on the closing
date, these estimates require the managers to make use of their judgment. The future realisations
depend on many factors: fluctuation of interest and exchange rates, economic situation, changes to
regulations or legislation, …
Amongst others, the following assessments require the formulation of hypotheses and estimates:
-
-
the fair value of the financial instruments, notably the value relating to non-listed shares included
in the “Financial assets available for sale” and the value relating to instruments negotiated overthe-counter and included in the “Financial Assets or Liabilities assessed at their fair value through
profit or loss” (notably rate swaps), as well as more generally the value relative to the financial
instruments for which this information must be included in the notes to the financial statements,
the future and non-recognised litigation associated with the financial guarantees provided by
Bpifrance Financement and Bpifrance Régions,
-
-
-
the depreciations of the credit activity calculated on an individual basis, which are estimated on a
discounted basis according to a certain number of parameters (estimate of a recovery schedule,
for example), or economic factors,
depreciations of the current activity calculated on a collective basis that notably use estimates of
default probabilities and expert opinions,
the calculations relative to the charges for the retirement services and future social benefits have
been established on the basis of hypotheses regarding the discounting rate, personnel rotation
rate and the evolution of the salaries and social charges,
by their nature, the provisions are also the subject of estimates, consisting of liabilities for which
the maturity or amount are not precisely fixed,
the amount of the deferred taxes, as a deferred tax asset is only recognised if it is felt that there is
a probable future availability of a taxable profit against which the deferred tax debits can be
charged.

Note 6 - Notes to the balance sheet
For certain of the balance sheet’s accounting categories (in particular the ones that take in financial
instruments), information on the contractual terms are provided under the references “Current” and
“Non-current”.
With reference to the IAS 1 standard “Presentation of Financial Statements”, the breakdown
between ”Current” and “Non-current” is made in view of the contractual residual maturities and of the
management intention.
As such, an asset or liability is classified as “Current” in the event of realisations or settlements that
will notably take place within the 12 months that follow the closing date. Inversely, realisations and
settlements that will take place more than 12 months after the closing date are classified as “Noncurrent”.
6.1
Cash and central banks (assets and liabilities)
assets
Cash, central banks
Total actif
Liabilities
Central banks
Total liabilities
2013
2012
173,5
173,5
115,0
115,0
0,0
0,0
3,0
3,0
| 99
6.2
Financial assets and liabilities at fair value through profit or loss
Financial assets held for trading purposes
2013
0,0
2012
0,0
Financial assets at fair value through profit or loss on option
Bonds and other fixed income securities
Equities and other variable income securities
Other financial assets
2,0
70,9
0,0
2,0
79,5
0,0
Total financial assets at fair value through profit or loss on
option
72,9
81,5
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
72,9
81,5
Derivative instruments at fair value through profit or loss (*)
Interest rate derivatives
Exchange rate derivative instruments
Derivative instruments on equities and indices
Total derivative instruments at fair value through profit or loss
Total financial assets at fair value through profit or loss
(*) not the subject of hedge accounting
Breakdown of the Financial assets at fair value through profit or loss
between current and non-current elements
Current
Non-current
Total
2013
2012
2,0
70,9
72,9
1,9
79,6
81,5
Financial liabilities at fair value through profit or loss
Financial liabilities held for trading purposes
Financial liabilities at fair value through profit or loss on option
Other financial liabilities
Total financial liabilities at fair value through profit or loss on
option
Derivative instruments at fair value through profit or loss
Total derivative instruments at fair value through profit or loss
Total financial liabilities at fair value through profit or loss
2013
0,0
2012
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
5,0
0,0
5,0
0,0
5,1
0,0
5,1
5,0
5,1
Breakdown of the Financial liabilities at fair value through profit or loss
Current
Non-current
Total
2013
2012
0,0
5,0
5,0
0,0
5,1
5,1
Credit risk associated with the financial liabilities at fair value through profit or loss
Difference
Total amount between the book
Book
of fair value
value and the
value
variations
contractually
attributable to owed amount at
(in millions of euros) 31/12/2013
the credit risk
maturity
Financial liabilities held for trading purposes
0,0
0,0
0,0
Financial liabilities at fair value through profit
or loss on option
0,0
0,0
0,0
Derivative instruments at fair value through
profit or loss
5,0
0,0
0,0
- Interest rate derivatives
0,0
0,0
0,0
- Exchange rate derivative instruments
5,0
0,0
0,0
- Derivative instruments on equities and indices
0,0
0,0
0,0
Total derivative instruments at fair value
5,0
0,0
0,0
Total financial liabilities at fair value through
profit or loss
6.3
5,0
0,0
0,0
Derivative hedge instruments (assets and liabilities)
Asset hedging derivative instruments
Fair value derivative hedge instruments
Cash flow derivative hedge instruments
Total derivative hedge instruments (assets)
Individual hedging
* including fair value hedging
* including cash flow hedging :
Portfolio rate hedging (fair value hived-off global hedging)
Portfolio rate hedging (cash flow hedge)
Total derivative hedge instruments (assets)
2013
367,1
367,1
0,0
0,0
0,0
367,1
367,1
0,1
0,1
0,0
2012
503,9
503,9
0,0
0,0
0,0
503,9
503,9
0,0
0,0
0,0
367,0
0,0
367,1
503,9
0,0
503,9
| 101
Derivative hedge instruments - liabilities
Fair value derivative hedge instruments
Cash flow derivative hedge instruments
Total derivative hedge instruments (liabilities)
Individual hedging
* including fair value hedging
* including cash flow hedging :
Portfolio rate hedging (fair value hived-off global hedging)
2013
432,2
432,2
0,0
0,0
0,0
432,2
432,2
0,0
0,0
0,0
432,2
0,0
432,2
Portfolio rate hedging (cash flow macro-hedge)
Total derivative hedge instruments (liabilities)
2012
593,4
593,4
0,0
0,0
0,0
593,4
593,4
0,0
0,0
0,0
593,4
0,0
593,4
Breakdown of the inefficiency of the fair value hedge
2013
Fair value variation of the hedged element
Fair value variation of the hedge instrument
Total
6.4
2012
0,4
0,0
0,6
0,0
0,4
0,6
Negotiable debt instruments
Bonds
Government bonds
Other obligations
Non-consolidated equity securities
Depreciation on assets available for sale
Total financial assets available for sale
2013
60,0
106,0
104,8
1,2
34,4
29,4
-11,0
2012
312,2
108,8
107,2
1,6
39,9
21,6
-10,5
218,8
472,0
Variation table of the impairments
Balance on 1 January
Fiscal year impairment
Impairment loss
Depreciation write-back
2013
Balance on 31 December
2012
10,5
0,5
1,3
-0,8
12,8
-2,3
1,2
-3,5
11,0
10,5
Breakdown of the Financial assets available for sale
Current
Non-current
2013
Total
6.5
2012
81,2
137,6
334,4
137,6
218,8
472,0
Overdrafts
Term loans
Individual impairment of loans and receivables
Collective impairment of loans and receivables
Inter-company receivables
Total loans and receivables owed by lending institutions
2013
291,8
168,0
0,0
0,0
0,2
2012
275,7
118,5
0,0
0,0
0,3
460,0
394,5
Breakdown of the Loans and receivables owed by lending institutions
Current
Non-current
Total
2013
351,3
108,7
2012
303,3
91,2
460,0
394,5
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6.6
Ordinary accounts receivable, advances on TAP
Short-term credit facilities
Medium and long-term loans
Subordinated loans
Other credits
Individual impairment of loans and receivables
Collective impairment of loans and receivables
Accounts opened with the State - Agence France
Trésor
Total loans and receivables owed by the
clientele
2013
2,7
1 937,9
8 446,2
199,4
3 941,8
-248,8
-430,7
38,0
2012
15,6
933,1
7 072,2
161,7
3 157,7
-226,7
-368,4
31,3
4 943,4
4 780,5
18 829,9
15 557,0
Variation tables of the individual impairment
Individual impairment expense
Individual depreciation write-back
Accretion effect
Other movements (3)
PLMT (Long and
medium-term loans) (1)
206,2
21,2
41,3
-14,3
-0,9
-4,9
227,4
2013
FCT (Short-term Oth
financing) (2)
er
19,8 0,7
1,1 -0,2
1,6 0,0
-2,7 -0,2
0,0 0,0
2,2 0,0
20,9 0,5
Total
226,7
22,1
42,9
-17,2
-0,9
-2,7
248,8
PLMT (Long and
medium-term loans) (1)
188,5
17,7
25,3
-19,8
-1,3
13,5
206,2
2012
FCT (Short-term Oth
financing) (2)
er
17,2 0,7
2,6 0,0
1,9 0,1
-2,1 -0,1
0,0 0,0
2,8 0,0
19,8 0,7
Total
206,4
20,3
27,3
-22,0
-1,3
16,3
226,7
(1) Cofinancing activity - Medium and LongTerm Loans (PMLT)
(2) Short-Term Financing Activity
(3) The other movements primarily relate to
the allocated guarantee funds
Accretion effect
Other movements (3)
Variation tables of the collective impairment
2013
PLMT (long and
medium-term
FCT (Short-Term
loans)
Financing)
353,3
15,1
56,6
5,7
Depreciation charges net of
available write-backs
69,9
7,4
Collective depreciation write-back
-45,1
-1,7
Other movements
31,8
0,0
409,9
20,8
Other
0,0
0,0
Total
368,4
62,3
0,0
0,0
0,0
0,0
77,3
-46,8
31,8
430,7
2012
Depreciation charges net of
available write-backs
Other movements
PLMT (long and
medium-term
loans)
284,0
69,3
FCT (Short-Term
Financing)
0,0
15,1
Other
0,0
0,0
Total
284,0
84,4
59,4
-23,3
33,2
353,3
4,7
-2,4
12,8
15,1
0,0
0,0
0,0
0,0
64,1
-25,7
46,0
368,4
Breakdown of the loans and receivables due from customers
Current
Non-current
Total
6.7
2013
2012
8 517,1
10 312,8
6 848,2
8 708,8
18 829,9
15 557,0
Real estate leasing (CBI) and equivalent operations
Equipment leasing (CBM) and equivalent operations
Individual impairment
Collective impairment
Total finance lease and equivalent operations
2013
3 844,9
1 582,6
21,2
-57,6
-102,0
2012
3 463,2
1 482,0
22,7
-49,9
-96,2
5 289,1
4 821,8
| 105
Variation table of the individual impairments
Other movements (1)
CBI (real estate
leasing)
24,0
14,3
6,0
-6,0
14,3
2013
CBM (equipment
leasing)
Total
25,9 49,9
-6,6
7,7
5,4 11,4
-10,0 -16,0
-2,0 12,3
38,3
19,3
57,6
(1) The other movements primarily relate to the allocated
guarantee funds
Other movements (1)
CBI (real estate
leasing)
20,6
3,4
8,5
-4,2
-0,9
2012
CBM (equipment
leasing)
Total
28,2 48,8
-2,3
1,1
10,4 18,9
-12,6 -16,8
-0,1 -1,0
24,0
25,9
49,9
(1) The other movements primarily relate to the allocated
guarantee funds
Variation table of the collective impairments
Depreciation charges net of available write-backs
Depreciation charges net of available write-backs
CBI (real estate
leasing)
74,0
7,4
6,3
1,1
2013
CBM (equipment
leasing)
Total
22,2 96,2
-1,6
5,8
7,5
1,2
-2,8 -1,7
81,4
20,6 102,0
CBI (real estate
leasing)
88,9
-14,9
-8,5
-6,4
2012
CBM (equipment
leasing)
Total
14,2 103,1
8,0 -6,9
3,4
11,9
-3,9 -10,3
74,0
22,2
96,2
Breakdown of the Finance lease operations
Current
Non-current
2013
Total
6.8
2012
781,8
4 507,3
729,5
4 092,3
5 289,1
4 821,8
Innovation repayable advances
Individual impairment
Collective impairment
Total aid for financing innovation
6.9
2013
1 278,8
-197,0
-466,9
2012
1 351,6
-249,0
-457,2
614,9
645,4
Held-to-maturity financial assets
Bonds
Government bonds
Other obligations
Impairment of financial assets held until maturity
Total financial assets held until maturity
2013
219,2
6 414,9
6 117,6
297,3
0,0
2012
282,0
5 067,3
4 743,8
323,5
0,0
6 634,1
5 349,3
Breakdown of the Financial assets held to maturity
Current
Non-current
Total
2013
2012
361,6
6 272,5
415,8
4 933,5
6 634,1
5 349,3
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6.10
Current and deferred tax assets and liabilities
Current taxes
Deferred taxes
2013
2012
34,6
0,0
54,2
1,8
Current and deferred tax assets
Current taxes
Deferred taxes
34,6
1,4
18,6
56,0
1,8
0,0
Current and deferred tax liabilities
20,0
1,8
6.11
Accrued income / expense, and other assets / liabilities
Accruals and other assets
Discounted value of pending commissions owed to
the guarantee funds (activity garantie)
Deferred expenses
Accrued income
Automatic direct debits in progress
Other
Total of the accruals and deferred income
2013
2012
150,8
76,6
6,8
127,6
52,8
147,5
49,2
6,8
0,8
43,8
414,6
248,1
Other assets
Settlement accounts for securities transactions
Guarantee margins paid on repurchase transactions and
interest rate swap contracts
Receivables with State and Innovation partners
Guarantee funds to be received
Other sundry debtors
Stocks and sundry assets
Total of the other assets
2013
2012
0,7
194,5
0,7
224,2
722,5
167,8
58,2
12,2
748,2
14,4
70,0
10,9
1 155,9
1 068,4
Accruals and deferred expenses
Subsidies to be paid (innovation)
Guarantee commissions booked in advance (*)
Other deferred income
Other tax and social charges to be paid
Other charges to be paid
Other
Total of the accruals and deferred expenses
(*) The increase of the guarantee commissions recorded in advance is linked to the
reclassification
of the unique and simplified unique commissions in the regularisation account. The collection
of commissions in advance
on a single occasion has been generalized.
2013 2012
599,2 599,9
164,7 18,6
8,6
1,4
56,9 55,0
9,5
6,9
263,8 81,7
1
102,7 763,5
Other liabilities
Outstanding payments on securities not fully paid up
Received security deposits
Other guarantees received
Litigation to be paid on proven risks relative to guarantee commitments
Allocated public sector funds - FDES advances
Invoices to be paid on leasing operations
Preserved capital guarantee funds (guarantee activity)
Other tax and social debts
Guarantee commissions earned in advance from customers (*)
Sundry creditors
Total other liabilities
(*) The decrease of the commissions earned in advance is linked to the reclassification of
the
unique and simplified unique commissions in the regularisation account.
6.12
2013
3,3
3,7
105,5
1
299,1
8,5
54,3
511,7
23,9
0,5
35,4
2
045,9
2012
6,9
4,0
175,9
1
208,5
10,2
49,6
495,1
13,4
88,7
34,5
2
086,8
Investment property
Investment property
Gross value of land and buildings
Amortisations and depreciations
Total investment buildings
2013
2012
17,7
-5,7
17,7
-5,4
12,0
12,3
| 109
6.13
Tangible and intangible assets
1 - Tangible fixed assets
1.1 - Land and buildings
2013
Net amount
1.2 - Other tangible fixed assets
Net amount
Total tangible fixed assets
2 - Intangible fixed assets
2.1 - Software programs
Net amount
2.2 - Other intangible fixed assets
Net amount
2012
151,9
-54,9
97,0
21,8
-16,2
5,6
123,4
-47,7
75,7
19,9
-14,9
5,0
102,6
80,7
141,9
-96,3
45,6
1,2
0,0
1,2
121,1
-80,9
40,2
1,2
0,0
1,2
46,8
41,4
Total intangible fixed assets
Gross amount as at 31/12/2012
Acquisitions
Exits
Entry into the perimeter
Other movements
Total depreciation on 31/12/2013
Net amount on 31/12/2013
Land and
buildings
123,4
5,0
-1,2
25,1
-0,4
151,9
-54,9
97,0
Other tangible
fixed assets
19,9
2,5
-0,7
0,1
0,0
21,8
-16,2
5,6
Other
Software
intangible
fixed assets
121,1
23,0
-2,2
0,0
0,0
141,9
-96,3
45,6
1,2
0,0
0,0
0,0
0,0
1,2
0,0
1,2
6.14
Debts to credit institutions
Demand and overnight debts
Ordinary deposits and accounts
Overnight borrowings and accounts
Term debts
Term borrowings and accounts
. including Codevi / Livret Développement Durable resources
. including EIB, KfW and BDCE resources
. including refinancing with the European Central Bank
Securities sold on repo
Associated liabilities
2013
Total debts to lending institutions
2012
1,8
1,8
0,0
11 115,7
6 843,9
4 828,9
825,0
1 190,0
4 271,8
62,1
5,6
5,6
0,0
10 266,1
6 642,9
4 701,0
900,0
500,0
3 623,2
73,4
11 179,6
10 345,1
Breakdown of the Amounts due to credit institutions
Current
Non-current
Total
6.15
2013
5 969,3
5 210,3
2012
4 238,5
6 106,6
11 179,6
10 345,1
Demand and overnight debts
Ordinary deposits and accounts
Overnight accounts and borrowing
Term debts
Term borrowings and accounts
. including EPIC BPI-Groupe loans
Securities sold on repo
Advance from State shareholder
Associated liabilities of the shareholder's advance
Total debts due to customers
2013
2012
222,7
153,1
222,7
153,1
0,0
0,0
2 027,7
2 104,5
2 022,1
2 081,9
1 621,5
1 624,4
5,6
22,6
18,1
19,4
300,0
300,0
0,0
0,0
2 568,5
2 577,0
Breakdown of the debts due to customers
Current
Non-current
Total
2013
439,8
2 128,7
2 568,5
2012
419,4
2 157,6
2 577,0
| 111
6.16
Debt securities
Bond issues
2013
7 993,9
2012
4 243,2
61,0
61,0
EMTN (*) 2011
1 200,0
1 200,0
EMTN (*) 2012
2 613,9
2 613,9
EMTN (*) 2013
3 770,0
0,0
Revaluation of micro-hedged loans (net of issue costs)
-24,3
-31,7
FCT Proximité PME December 2010
186,7
200,0
186,6
200,0
1 394,2
54,1
1 293,4
36,0
Total debts represented by a security
9 442,2
5 572,6
Bond loan OSEO 1995
PIBOR maturity 20/11/15
FCT Proximité PME March 2011
Euribor
Euribor
(*) As a supplement to the €61 million PIBOR bond loan maturing on 20/11/2015, the outstandings of the bond issues carried out
as part of the Bpifrance Financement EMTN (Euro Medium Term Notes) is equal to €7,584 million euros as on 31 December
2013. The update of the prospectus, on 3 June 2013 as approved by the Financial Markets Authority (AMF), sets a new ceiling of
€20 billion for this programme, for which the issues are subject to guarantee by the EPIC BPI-Groupe and are rated Aa1 by the
Moody's agency on 31 December 2013.
Breakdown of the Debts represented by a security
Current
Non-current
Total
2013
1 527,4
7 914,8
2012
1 328,9
4 243,7
9 442,2
5 572,6
6.17
Impairment and provisions
Provisions
Provisions on credit risks
Provisions for restructuring
Provisions for other employee benefit commitments
Fair value of the guarantees given
Innovation off-balance sheet commitments
Other
2013
2,9
2,5
15,1
1 352,9
263,0
24,2
2012
3,1
2,7
15,1
1 424,8
296,1
18,0
Total provisions
1 660,6
1 759,8
| 113
Table of depreciation flows and provisions
Impairment and provisions for doubtful loans
and credit risks - Fair value of the guarantees
given
Allowances
Reversals of
Reversals of
Depreciations
to the
Available
Depreciations
Other
Depreciations
and
Depreciations Depreciations
and
variations and provisions
provisions to
and
and
provisions
(2)
to 31/12/13
31/12/12
provisions
provisions
used (1)
Risks
charged
on the
Fund of
guarantee
Nonrecoverable
receivables
not hedged
by the
provisions
Recoveries
on
depreciated
receivables
Impact on the
earnings (3)
2 170,4
852,7
527,7
237,1
-62,5
2 195,8
260,4
17,1
6,0
-75,7
277,9
0,0
226,7
49,9
1,2
0,1
55,0
0,0
43,4
11,5
0,0
0,1
18,3
0,0
2,3
15,5
0,5
0,0
15,4
0,0
14,9
0,5
0,0
0,0
8,1
0,0
-4,1
12,2
0,0
0,0
307,3
0,0
248,8
57,6
0,7
0,2
0,0
0,0
0,0
0,0
0,0
0,0
8,0
0,0
6,0
2,0
0,0
0,0
5,5
0,0
2,3
3,2
0,0
0,0
-39,2
0,0
-44,8
5,2
0,5
-0,1
3,1
1 424,8
464,6
784,7
-71,9
84,9
460,9
0,0
48,5
221,7
0,0
0,0
-102,3
0,0
31,7
2,9
1 352,9
532,7
332,3
-71,9
0,0
9,1
0,0
0,0
0,5
0,0
0,0
-0,1
0,0
-36,4
18,0
7,1
0,8
0,1
0,0
24,2
Impairment on aid for financing innovation
706,2
72,1
72,1
0,0
-42,3
663,9
Provisions for innovation aid commitments
296,1
0,0
23,5
0,0
-9,6
263,0
2,8
0,5
2,3
0,5
0,0
0,5
2,5
0,7
1,8
0,0
0,0
0,0
17,6
2,5
15,1
- Impairment of doubtful loans
. Interbank loans
. Clientele loans
. Leasing transactions (excl. interest)
. Securities transactions
. Sundry debtors
- Provisions on credit risks
- Fair value of the guarantees
- Collective impairment
Prov. for misc. operating contingencies
Other provisions
17,8
- Provisions for restructuring
2,7
- Provisions for employee benefit commitments
15,1
(1) Write-backs correspond to write-offs as losses
(2) Variations in scope, exchange rate and reclassification of provisions
(3) -/+ Net allowances or write-backs
+ Risks charged to the guarantee funds
- Non-recoverable receivables
+ Recoveries on impaired receivables
Consolidated financial
statements
6.18
ISI Innovation aid - ISI (Innovation Stratégie Industrielle)
Industrial innovation mobilising programme - ISI 2008 (PMII -
2013
276,0
2012
206,2
77,9
88,3
291,7
58,5
86,4
295,5
28,4
14,5
Strategic sectors
Total of the net innovation intervention resources
173,9
68,8
1 005,0
247,2
43,1
951,4
Net innovation intervention resources on 31/12/2012
2013 allocations (net balance)
Subsidies
Provisions, losses and recognised failures
Financial earnings and charges
Miscellaneous proceeds
Appraisals and miscellaneous expenses
Net innovation intervention resources on 31/12/2013
951,4
389,8
-246,9
-91,1
-1,2
7,3
-4,3
1 005,0
Programme Mobilisateur pour l'Innovation Industrielle)
Single Interministerial Fund (FUI - Fonds Unique Interministériel)
Aid on partners financing
Innovation Guarantee Regional Funds (FRGI - Fonds Régionaux de
Garantie de l'Innovation)
Structuring projects of the competitiveness clusters (PSPC - Projets
Structurants des Pôles de Compétitivité)
6.19
Public Guarantee Fund
Reserve funds
AFT (Agence France Trésor)
CDC
Hived-off assets
Other Funds
Bpifrance Regions funds
Total of the public guarantee funds
Public guarantee funds on 31/12/2012
Appropriations to 2013 guarantee funds (net
balance)
Repayments of guarantee funds
Guarantee commissions
Financial proceeds and recoveries
Cost of risk
Discounted provisions
Public guarantee funds on 31/12/2013
2013
875,8
989,5
7,5
13,7
108,4
301,6
2012
888,2
852,5
24,3
24,6
105,0
264,6
2 296,5
2 159,2
2 159,2
306,5
-16,5
80,5
28,5
-260,6
-1,1
2 296,5
| 115
6.20
Subordinated debts
Subordinated perpetual debt
Mutual guarantee deposits
Total subordinated debts
2013
2012
0,0
14,6
0,0
14,6
0,0
14,7
0,0
14,7
Breakdown of the Subordinated debts
Current
Non-current
Total
6.21
2013
2012
14,3
0,3
14,6
14,3
0,4
14,7
Fair value of assets and liabilities
ASSETS
- Bonds and other fixed income securities
- Equities and other variable income securities
- Negotiable debt instruments
- Government bonds
- Other obligations
- Government bonds
- Other obligations
Investment property
LIABILITIES
Financial liabilities at fair value through profit or
loss
Debt securities
Level 1
2013 (1)
Level 2 Level 3
0,0
0,0
0,0
367,1
367,1
60,0
60,0
106,0
104,8
1,2
460,3
19 684,2
5 528,6
6 839,2
127,0
92,2
127,0
6 428,3
318,7
15,4
0,0
5,0
5,0
0,0
432,2
432,2
11 479,3
2 739,5
9 085,1
373,3
Total
72,9
2,0
70,9
0,0
72,9
2,0
70,9
367,1
367,1
52,8
218,8
60,0
104,8
1,2
52,8
52,8
460,3
19 684,2
5 528,6
0,0 6 966,2
219,2
6 428,3
318,7
15,4
0,0
5,0
5,0
0,0
432,2
432,2
11 479,3
2 739,5
9 458,4
(1) : the new information relative to the fair value hierarchy applies on a forward-looking basis as of 1 January 2013.
ASSETS
- Government bonds
- Other obligations
Investment property
Level 1
2012
Level 2 Level 3
0,0
0,0
107,2
0,6
0,6
503,9
503,9
313,8
312,2
107,2
1,6
LIABILITIES
Financial liabilities at fair value through profit or
loss
Debt securities
0,0
0,0
5,1
5,1
593,4
593,4
Total
80,9
2,0
78,9
0,0
81,5
2,0
79,5
503,9
503,9
51,0
472,0
312,2
107,2
1,6
51,0
51,0
395,3
16 099,9
5 113,6
5 848,8
15,4
0,0
5,1
5,1
0,0
593,4
593,4
10 387,0
2 709,6
5 572,6
No significant transfer between fair value levels occurred during the fiscal
year.
6.22
Euro equivalent of foreign currency transactions
Assets
Liabilities
2013
1,6
21,5
2012
1,6
24,4
These net balance sheet positions are hedged using financial instruments negotiated over-the-counter
(forward foreign currency and exchange swaps).
| 117

7.1
Note 7 - Notes relative to the profit and loss statement
Interest income and expense
Interest income
Transactions with lending institutions
Customer loans
Overdrafts
Medium and long-term loans
Miscellaneous credits
Subordinated debts
Variation of discounted future guarantee commissions
Subtotal customer loans
Finance lease operations
Rents
Depreciation allowances
Allowances for special depreciations (Art. 64 and Art. 57)
Net movements on depreciation of termination compensation
Other proceeds
Subtotal finance lease operations
Operations involving financial instruments
Capital gain from disposals of securities backing the guarantee funds (*)
Hedging derivatives
Subtotal transactions on financial instruments
Other interests and similar income
Total interest and related income
(*) After the 30 June 2012 reclassification of part of the financial assets held until maturity
as financial assets
available for sale, in October 2012, the former OSEO carried out its disposal
for the price of €2,875.5 million, corresponding with a
book value of €2,661.2 million, i.e. a capital gain of €214.3 million.
2013 2012
3,0 27,4
0,1
0,1
29,5 22,6
274,3 223,4
278,1 261,8
6,6
5,9
3,3 22,9
591,9 536,7
936,4
678,3
-90,0
-10,5
97,6
255,2
887,4
632,9
-78,4
-8,5
97,3
264,9
1,3
152,0
0,0
173,2
326,5
67,8
187,0
214,3
203,9
673,0
2,5
0,4
1
1
179,1 502,4
2013 2012
158,2 195,6
162,7 165,8
-79,9 -97,0
Customer loans
of which allocation of commission earnings to the guarantee funds
Allowances to depreciations (excluding Art. 64 and Art. 57)
Other expenses
Subtotal finance lease operations
0,0
-92,7
-92,7
138,7 -74,4
0,0
-0,2
193,5 248,5
332,2 323,1
Debt securities
Subordinated debts
Hedging derivatives
Subtotal operations with financial instruments
Other interest and similar charges
of which financial earnings allocated to the guarantee funds (*)
Total interest and related expenses
(*) After the 30 June 2012 reclassification of part of the financial assets held until maturity
as financial assets
available for sale, in October 2012, the former OSEO carried out its disposal
for the price of €2,875.5 million, corresponding with a
book value of €2,661.2 million, i.e. a capital gain of €214.3 million.
7.2
0,0
-96,4
-96,4
-24,4 298,8
-18,8 274,6
-1
770,2 079,7
Net gain / loss on financial instruments at fair value through profit or loss
Net income on trading portfolio
Net income on fair value portfolio on option
Net income on derivative instruments and revaluation of hedged
elements
Individual hedging (inefficiency)
Hived-off global hedging
Isolated swaps
Other
Net income from exchange operations
Total net gains or losses on financial instruments at the fair value
2013
2012
0,0
-2,3
0,0
0,8
0,9
0,4
0,0
0,0
0,5
0,0
0,9
0,6
0,0
0,0
0,3
0,0
-1,4
1,7
| 119
7.3
Dividends
Disposal income
Disposal capital gains
Disposal capital losses
Depreciation write-backs
Impairment losses on variable income securities
Total net gains or losses on financial assets available
for sale
7.4
2013
2012
0,4
5,5
5,5
-0,3
0,3
-1,3
0,9
4,8
4,7
-3,3
3,4
-1,1
4,6
4,6
Income and expenses from other activities
Proceeds
Intervention allocations from partners - (innovation activity)
Operating allocations - (innovation activity)
Expenses charged back
Investment property
Commission on recoveries and on insurance sold
Capital gains on stock disposals
Other proceeds
2013
2012
17,3
33,0
3,2
2,2
6,3
1,9
31,5
35,1
37,7
2,5
2,1
5,1
2,4
36,0
Total income from other activities
Expenses
Subsidies paid on behalf of partners
Subsidies paid on own funds
Provisions and losses on innovation aid
Investment property
of which depreciation charges
Capital losses on stock disposals
Other expenses
95,4
120,9
-13,5
0,1
-3,3
-0,3
-0,3
-8,0
-10,3
-28,6
0,1
-5,9
-0,3
-0,3
-6,4
-16,5
Total expenses from other activities
-35,3
-57,6
7.5
Personnel expenses
Duties and taxes
Other operating expenses
Costs related to restructuring
Total general operating expenses
7.6
2013
-164,2
-22,8
-87,9
-0,5
2012
-162,5
-23,6
-83,4
-1,3
-275,4
-270,8
Amortisation & depreciation allowances on tangible & intangible fixed assets
Depreciation allowances
Allowances for impairment losses
Write-backs for impairment losses
Total amortisation and depreciation allowances on tangible and intangible fixed
assets
7.7
2013 2012
21,9 18,9
0,0
0,0
0,0
0,0
21,9 18,9
Cost of risk
2013
Individual
impairment
Collective
impairment
2012
Other
liabilities
Total
Total
Net allowances or write-backs for
depreciations and provisions
Non-provisioned losses
Recoveries on impaired receivables
-36,7
-8,0
5,5
-36,4
0,0
0,0
8,5
-9,1
0,5
-64,6
-17,1
6,0
-61,1
-9,1
5,5
Total risk cost
-39,2
-36,4
-0,1
-75,7
-64,7
7.8
Taxes
Income tax
Corporation tax
Deferred taxes
Total income tax
2013
2012
-28,1
-19,8
-40,7
-11,6
-47,9
-52,3
| 121
Analysis of the income tax expense
Group share of net earnings
Share of net earnings of minority interests
Net tax charge booked
2013
58,7
1,3
47,9
2012
98,1
2,0
52,3
107,9
152,4
34,43
34,43
Total theoretical tax charge
(C)=(A*B)
Reconciliation items:
Capital gains and profits taxed at reduced rates or tax exempt
Other permanent differences
Consumption (or creation) of losses carried forward
5% exceptional contribution for 2011 and 2012
10.7% exceptional contribution for 2013 and 2014
Other elements
37,1
52,5
-0,5
-1,2
0,0
0,0
13,6
-1,1
-1,5
-1,7
1,4
2,0
0,0
-0,4
Total elements reconciled
10,8
-0,2
47,9
52,3
Pre-tax earnings
French ordinary law taxation rate
Net tax charge booked

8.1
(A)
(B)
(D)
(C) + (D)
Note 8 - Exposure, management and measurement of risks
General risk management organisation
This note presents the main risks associated with the financial assets and liabilities and their
management by the approved credit institution, Bpifrance Financement.
The main risks inherent to the group’s banking activity are:
 the credit and counterparty risks: risks of losses due to a counterparty’s inability to meet its
financial obligations,
 market and exchange risks: risks of losses due to changing prices and market rates,
 liquidity risks: risks that the group will be unable to meet its commitments after their maturity.
 The operational risks.
In general terms, the various Bpifrance Financement group departments and subsidiaries carry out
their activities within the framework of procedures that align with the body of rules set down for the
company: the credit risk reference bases and the financial activities memorandum. The permanent
and periodic control functions verify the compliance with the procedures and instructions.
The Bpifrance Financement Risk department revolves around:


coordination by the Risk Permanent Control department (the business line departments
provide the operational control of the risks),
a risk committee that is in charge of the overall monitoring of the Group risks.
The role of the risk committee is to ensure the existence of a suitable system of limits, to ensure
compliance with the limits and their periodic review, and to assess the incurred risk levels. The Risk
Committee, that includes the Executive Body as well as the main functions in charge of measuring and
controlling risks, meets on a quarterly basis.
The management of these risks is based on a differentiated approach for each type of risk.
Exposure, management and measurement of the risks of the innovation aid activity
Financed by public allocations, primarily from the State, the Regions and Europe, Bpifrance
Financement is active in the financing and support of innovative companies. With a general interest
mission within the framework of the economic policy undertaken by the French State in order to
promote and develop investment in research and innovation, it provides companies with subsidies and
repayable advances.
As such, the particularities of its actions and of its financing method mean that the standards IAS 39
“Financial instruments: recognition and measurement” and IFRS 7 “Financial instruments: disclosures”
are not applicable relative to Bpifrance Financement.
8.2
Credit risks
8.2.1. Selection system for operations
For each type of aid, eligibility criteria are defined within the commissioning framework. They can
involve the age of the beneficiary company, the business sector, the project’s nature, the operation’s
duration, and the fact of sharing with a bank establishment.
The granting of the loan is subject to an annual investigation that clarifies the risk policy for the year,
as validated by the General management.
For each operation analysis, it relies on ratings of the counterparty, the project and the transaction.
The transaction’s characteristics pertain primarily to the provisions and quality of the sureties and
guarantees anticipated in order to reduce the exposure to the credit risk. The sureties and guarantees
are the normally adopted ones, according to the nature and duration of the credit operations: disposals
of receivables, mortgages, pledges, bank guarantees and backing on guarantee funds.
For all financing, guarantee and innovation activities, the Commitments Department performs a
counter-analysis of the files that exceed the delegation level of the Network Departments, for which
the decision rests with the Commitments committee.
8.2.2. Risk measurement and surveillance system
The surveillance and control of commitments with the clientele include a limit system that takes into
account the own funds and outstandings of Bpifrance Financement.
These limits apply to the total aggregate amount of the outstandings, of the notified agreements that
have not yet been used (whether the contract has been signed or not) and the internal agreements
that have not yet been notified.
They must be respected when agreeing to any new operation, as well as during any decision for
transfers of outstandings, and they are in addition to the possible ceiling rules that are specific to
certain products.
Any granting decision resulting in an overrun of these limits is submitted to the Commitments
Committee, and is under the responsibility of the Senior managers.
| 123
Limits by beneficiary group
The first limit is global and relates to all commitments involving a given beneficiary group. It is
expressed as a net amount after consideration of the bank counter-guarantees, and is established
according to the beneficiary group’s rating by means of a percentage of the Bpifrance Financement
own funds.
Within the above limit, specific limits are set relative to certain groups of products on the level of each
beneficiary group.
In guarantee terms, each fund’s intervention capacity also constitutes a limit. This limit is directly
monitored by the Capital and Balance Sheet Department.
Sector limit
This involves the financing activity.
This limit applies to the business sector as defined by the NAF codes that are assigned to them,
according to the distribution prepared by the Commitment Department in its sector-based follow-up.
It is determined in comparison with a relative weight in the Bpifrance Financement gross outstandings
of Medium Long Term (MLT) and Short Term (ST) financing, and is a function of the degree of
estimated risk based on expert opinions, by the Commitment Department, for each sector (low,
moderate or high risk).
Monitoring compliance with these limits is the responsibility of the Commitment Department, that uses
a system for alerting the Senior managers when this limit is close to being reached (outstandings >
90% of the limit).
Any granting decision resulting in an overrun of these limits is submitted to the Commitments
Committee, and is under the responsibility of the Senior managers.
Follow-up and analysis of the quality of the loan commitments
These limits are monitored each quarter by the Risk Committee, and reviewed at least annually. An
annual presentation is made to the Audit and Risk Committee.
The quality of the credit outstandings is analysed each month as part of a re-rating exercise. A
quarterly report is presented to the Risk Committee.
Second level controls
Ex-post controls (i.e. second level) on all decisions (delegated and centralised) by all of the business
lines (financing, guarantee and innovation) have been performed by the Risk Permanent Control
department.
The controllers verify compliance with the procedures and instructions. The verifications are performed
based on documents and by sampling, involving all files coming from the Bpifrance Financement
business lines (financing, guarantee and innovation), and are extended to a verification of the
implementation and compliance with the Commitment Committee’s decisions.
8.2.3. Concentration risk
A review of the major outstandings (representing 36% of the MLT outstandings and 22% of the ST
outstandings in 2013) is produced each quarter and presented to the Risk Committee.
Each year, this analysis is presented to the Audit and Risk committee.
8.2.4. Credit risk internal rating system
The credit risk internal rating system “Decision-Aid Tool” (OAD) is used for all MLT and ST financing
operations, as well as for non-delegated guarantee operations.
The system is managed by the “Support and Processes” Domain within the Commitments
Department, as a proprietary application.
This Domain is in charge of designing rating systems relative to the credit risks of the Bpifrance
Financement clientele, their evolution and their performance, on the qualitative level.
The Capital and Balance Sheet Department is in charge of preparing statistical models and the annual
backtesting report on the tracking of the models.
The notion of “backtesting the models” refers to all surveillance techniques for the default risk models
and, more specifically, statistical methods, the analysis of observed default rates relative to anticipated
default probabilities, and benchmarking of the rating models.
Moreover, a validation procedure for new models has been in place since 2009.
It is based on a technical committee that prepares a decision project that includes the Risk Permanent
Controller’s opinion, and that is submitted for validation to the Senior managers that decide on the
operational deployment of the models.
8.2.5 Follow-up of doubtful operations
Strict criteria govern the procedures for acceptance by the Litigation Department, as well as the same
department’s handling of the dossiers.
With regard to the acceptance, it occurs either as part of an automatic process, or via a decision by
the Commitments Committee.
The operational processing of the dossiers is provided within the framework of procedural rules that
provide for ensuring the efficiency of the collection or re-marketing measures, for quantifying the
collection estimates and validating the depreciations.
A delegation diagram determines the competency limits on the basis of the nature of the decisions.
The collection estimates are examined with each dossier event and according to a frequency that is at
least annual. For each product type, the most significant outstandings are reviewed every four months
by the Litigation Committee that consists of the Customer Management Director or his representative,
the Litigation Director, the Manager of the operational service in question, and the Support Functions
Manager.
| 125
8.3
Counterparty risk on financial activities
8.3.1. Exposure to the counterparty risk
Origin
The group’s exposure to the counterparty risk on financial activities originates with three types of
operations:



The investment operations of the guarantee funds,
The long-term management operations of the liquidity position and of the rate on loan
activities,
The short-term operations to replace the group’s temporarily available cash.
Measurement
A loan’s risk is equal to the outstanding capital, the risk on a security is equal to the security’s nominal
amount, and a derivative product’s risk is assessed at 0.75% per outstanding year of the underlying
value, after a 67% abatement in order to account for the cash guarantee write-back systems. This
calculation provides a risk valuation that is similar to the regulatory valuation method based on the
market price.
8.3.2. Risk policy
In view of the public nature of most of the managed capital, the emphasis is on risk diversification and
the search for the greatest possible security of the transactions:



the authorised counterparties have at least a rating of “A” as provided by specialised
agencies,
transactions involving financial instruments are systematically the subject of collateral
agreements,
cash transactions are governed by strict duration rules.
The outcome is that long-term investments are primarily carried out with public authorities, notably for
the guarantee funds, while short-term investments and operations involving financial instruments are,
for their part, carried out with lending institutions.
8.3.3. Management method
The counterparty risk is managed using a limit mechanism based on the ratings assigned to each
counterparty by specialised rating agencies. Counterparties are classified into 8 categories, with each
of them having the following:
1°) A commitment amount limit, calculated from an internal model, on the basis of:
a) a theoretical allocation of the Bpifrance Financement own funds for the overall hedging of its
counterparty risks,
b) the need for own funds corresponding with the counterparty’s default probability,
c) a risk division rule that limits the exposure to a given signature,
d) the consideration of the amount of the counterparty’s original own funds.
The tracking of the evolution of the quality of the counterparties is performed by the Financial
Operations Department, on a double level: legal entities and economic groups. For each counterparty
and each group, the Counterparty Risk Committee defines separate limits for the “Financing” and
“Guarantee” business lines.
2°) A commitment duration limit, defined with reference to the own funds consumption on the basis of
the solvency ratio, using the standard method, for a banking counterparty.
These various parameters can be updated on the basis of changes to the environment, or to the
establishment’s risk policy.
8.3.4. Control and reports
The Financial Operations Department reports on the limits and their usage and, each day, prepares a
report on the possible inflows, outflows and variations of overruns recorded for each counterparty. The
recipients are the managers of the Financial Operations Department, the Capital and Balance Sheet
Department, and the trading room operators.
A monthly report on the main evolutions is also prepared. It is provided to the members of the
Bpifrance Financement General Management, and to the Finance Committee members.
8.4
Quantitative analyses of the credit and counterparty risks on financial activities
Maximum credit risk exposure
Asset hedge derivative financial instruments
Loans and receivables to lending institutions
Loans and receivables to customers
Guarantee commitments given and signature commitments
Granting of irrevocable credit lines
2013
Total
2012
72,9
367,1
218,8
460,0
18 829,9
5 289,1
6 634,1
11 819,0
4 238,7
81,5
503,9
472,0
394,5
15 557,0
4 821,8
5 349,3
12 079,5
3 911,3
47 929,6
43 170,8
Quantitative information on the credit risk
In compliance with the IFRS 7 standard, Bpifrance Financement has defined, within the accounting
categories of the IAS 39 financial instruments, asset classes suited to its activity and its internal
reporting method. As such, the category “Loans and receivables provided to the clientele” corresponds
with the following asset classes:



PLMT (Long and Medium-Term Loans),
FCT (Short-Term Financing),
Other.
The category “Finance lease operations” consists of the following asset class:
| 127


CBI (Real Estate Leasing),
CBM (Equipment Leasing).
Breakdown by nature of the loans
2013
PLMT
(long and
FCT
medium(Shortterm
Term
loans)
Financing) Other
Nature of the loans
and receivables to
customers
2012
PLMT
(long and
mediumterm
loans)
Total
FCT
(ShortTerm
Financing)
Other
Total
Loans and receivables
to customers
11 972,1
1 899,8
4 958,0
18 829,9
9 849,7
900,2
4 807,1
15 557,0
Granting of irrevocable
credit lines
1 495,1
1 879,8
20,1
3 395,0
1 269,9
1 746,1
10,1
3 026,1
2013
Nature of the finance
lease operations
Property
leasing
Finance lease
operations
Equipment
leasing
3 740,0
Granting of irrevocable
credit lines
481,2
2012
Total
1 549,1 5 289,1
362,5
843,7
Property
leasing
Equipment
leasing
3 380,4
1 441,4
464,4
420,8
Total
4 821,8
885,2
Risk concentration by economic activity sector
The activity of the Bpifrance Financement group is entirely
concentrated within France.
2013
Economic activity sectors
Trade
Industry
Services
PW&CE
Tourism
Total
1 813,2
3 346,2
12 423,3
590,4
656,8
18 829,9
PLMT (long and medium-term loans)
1 665,0
3 017,0
6 413,8
241,2
635,1
11 972,1
148,2
329,2
1 052,6
349,2
20,6
1 899,8
FCT (Short-Term Financing)
Other
0,0
0,0
0,0
1,1
4 958,0
1 038,7
2 604,5
1 199,1
54,0
392,8
5 289,1
CBI (real estate leasing)
618,7
2 040,3
692,8
30,4
357,8
3 740,0
CBM (equipment leasing)
420,0
564,2
506,3
23,6
35,0
1 549,1
Total
* including accounts opened with the State - Agence France
Trésor - for €4,943.4 million.
2 851,9
4 956,9 *
5 950,7 13622,4
644,4 1049,6
24 119,0
2012
Trade Industry Services
2
332,2 2 911,2
8 900,1
2
246,8 2 716,1
3 766,9
PW&CE Tourism
796,6
326,0
793,9
9 849,7
290,9
1,6
900,2
0,0
1,1
4 807,1
85,4
195,0
0,0
0,1
917,8
2 397,0
1 076,5
62,6
367,9
4 821,8
524,2
1 879,9
604,0
36,3
336,0
3 380,4
393,6
517,1
472,5
26,3
31,9
1 441,4
Other
Total
* including accounts opened with the State - Agence
France Trésor - for €4,780.5 million.
3
250,0
679,5 1164,5
20
378,8
2013
2
162,5
2 408,9
PW&CE Tourism
Total
1 223,6
11
819,0
PW&CE Tourism
Total
5 191,1
832,9
2012
Guarantee commitments given and signature
commitments
4 805,9 *
5 308,2 9976,6
Guarantee commitments given and signature
commitments
327,3
616,9
Total
15
557,0
2
225,6
2 548,9
5 226,5
851,9
1 226,6
12
079,5
| 129
Risk concentration by counterparty type
Counterparty / issuer type
Financial assets at fair value
Asset hedge derivative financial
instruments
Non-current assets available for
sale
Loans and receivables to lending
institutions
Loans and receivables to
customers
PLMT (long and medium-term
loans)
Other
Total
Central
government
agencies
Lending
institutions
0,0
0,7
70,2
2,0
0,0
72,9
0,0
367,1
0,0
0,0
0,0
367,1
104,8
72,3
14,4
27,3
0,0
218,8
0,0
460,0
0,0
0,0
0,0
460,0
4 950,7
0,0
0,0
13 709,5
169,7
18 829,9
0,0
0,0
4 950,7
0,0
0,0
0,0
6 212,9
11 268,4
0,0
0,0
0,0
0,0
0,0
0,0
413,9
1 314,0
0,0
0,0
0,0
0,0
0,0
0,0
7,3
91,9
11 806,8
1 898,9
3,8
5 289,1
3 740,0
1 549,1
0,0
19 027,9
165,3
0,9
3,5
0,0
0,0
0,0
0,0
169,7
11 972,1
1 899,8
4 958,0
5 289,1
3 740,0
1 549,1
6 634,1
31 871,9
Financial assets at fair value
Asset hedge derivative financial
instruments
Non-current assets available for
sale
Loans and receivables to lending
institutions
Loans and receivables to
customers
PLMT (long and medium-term
loans)
Other
Total
Total
Lending
institutions
0,0
0,6
0,0
80,9
0,0
81,5
0,0
503,9
0,0
0,0
0,0
503,9
107,2
322,4
6,6
35,8
0,0
472,0
0,0
394,5
0,0
0,0
0,0
394,5
4 786,4
0,0
0,0
10 580,4
190,2
15 557,0
0,0
0,0
4 786,4
0,0
0,0
0,0
4 839,9
9 733,5
0,0
0,0
0,0
0,0
0,0
0,0
492,6
1 714,0
0,0
0,0
0,0
0,0
0,0
0,0
16,8
23,4
9 663,6
900,2
16,6
4 821,8
3 380,4
1 441,4
0,0
15 518,9
186,1
0,0
4,1
0,0
0,0
0,0
0,0
190,2
9 849,7
900,2
4 807,1
4 821,8
3 380,4
1 441,4
5 349,3
27 180,0
Central
government
agencies
Lending
institutions
0,0
0,0
Guarantee commitments given
and signature commitments
2012
Institutions
other than
Companies
lending
institutions
Retail
clientele
Central
government
agencies
Guarantee commitments given
and signature commitments
2013
Institutions
other than
Companies
lending
institutions
Central
government
agencies
Lending
institutions
0,0
0,0
2013
Institutions
other than
Companies
lending
institutions
0,0
323,1
2012
Institutions
other than
Companies
lending
institutions
0,0
315,6
Retail
clientele
Retail
clientele
11 495,9
Retail
clientele
11 763,9
Total
Total
11 819,0
Total
12 079,5
Quantitative information on the sound outstandings, the overdue outstandings and the
depreciated outstandings
2013
to lending institutions
to customers
PLMT (long and
medium-term loans)
FCT (Short-Term
Financing)
Other
Finance lease
operations
CBM (equipment
leasing)
Total
Sound
Total
2012
Overdu Impaire
e
d
Overdue
Impaired
Sound
459,6
0,4
0,0
460,0
394,5
0,0
0,0
394,5
18 250,8
479,8
99,3
18 829,9
15
318,8
144,8
93,4
15 557,0
11 549,7
328,7
93,7
11 972,1 9 695,7
71,8
82,2
9 849,7
1 745,6
151,1
3,1
1 899,8
818,5
73,0
8,7
900,2
4 955,5
0,0
2,5
4 958,0 4 804,6
0,0
2,5
4 807,1
5 101,3
170,1
17,7
5 289,1 4 602,6
191,7
27,5
4 821,8
3 588,0
146,4
5,6
3 740,0 3 204,2
161,7
14,5
3 380,4
1 513,3
23,7
12,1
1 549,1 1 398,4
30,0
13,0
1 441,4
23 811,7
650,3
117,0
20
315,9
336,5
120,9
20 773,3
24 579,0
Total
Breakdown of the sound loans and receivables by financial instrument class
(neither impaired nor overdue)
Internal rating
2013
PLMT
FCT
(long and
(ShortmediumTerm
Other
Total
term
Financing
loans)
)
4 950,7
0,0
0,0
4950,7
7 047,7
6 525,3
522,4
0,0
4 185,3
3 319,6
865,7
0,0
565,1
239,4
325,7
0,0
1 502,0
1 465,4
31,8
4,8
No risk (1)
Low risk
Average risk
High risk
Not rated
Total sound loans
and receivables
11 549,7
1 745,6
4 955,5
(1) Accounts opened with the State - Agence France Trésor
(in millions of
euros)
Internal rating
18 250,8
2012
PLMT
FCT
(long and
(ShortmediumOther
Total
Term
term
Financing)
loans)
4 786,4
0,0
0,0
4786,4
5 111,4
4 963,1
148,3
0,0
3 459,1
2 921,8
537,3
0,0
602,8
485,6
117,2
0,0
1 359,1
1 325,2
15,7
18,2
No risk (1)
Low risk
Average risk
High risk
Not rated
Total sound loans
and receivables
9 695,7
818,5
4 804,6
(1) Accounts opened with the State - Agence France Trésor
15 318,8
CBI (real
estate
leasing)
CBM
(equipme
nt
leasing)
Total
0,0
1 797,5
1 117,7
136,4
536,4
0,0
846,6
505,7
80,9
80,1
0,0
2 644,1
1 623,4
217,3
616,5
3 588,0
1 513,3
5 101,3
CBI (real
estate
leasing)
CBM
(equipmen
t leasing)
Total
0,0
1 590,3
1 125,3
151,3
337,3
0,0
750,1
528,6
52,4
67,3
0,0
2 340,4
1 653,9
203,7
404,6
3 204,2
1 398,4
4 602,6
| 131
Breakdown of the other sound assets by accounting category (neither depreciated nor past
due)
Rating
Moody's scale
2013
Financial assets
designated at
fair value
through profit
or loss
Non-current
assets available
for sale
Loans and
receivables to
lending
institutions
Financial assets
held to maturity
Total
Aaa
0,0
0,0
0,0
110,1
110,1
Aa3 to Aa1
0,0
105,1
21,0
6 430,7
6 556,8
A3 to A1
0,0
60,5
255,7
93,3
409,5
<A3
0,0
0,0
0,0
0,0
0,0
Not rated
72,9
53,2
183,3
0,0
309,4
72,9
218,8
460,0
6 634,1
7 385,8
Total sound assets
2012
Financial assets
designated at
fair value
through profit
or loss
Non-current
assets available
for sale
Aaa
0,0
0,0
0,0
181,5
181,5
Aa3 to Aa1
0,0
107,2
1,6
4 873,1
4 981,9
A3 to A1
0,0
313,0
216,7
294,7
824,4
Rating
Moody's scale
Loans and
receivables to
lending
institutions
Financial assets
held to maturity
Total
<A3
0,0
0,0
0,0
0,0
0,0
Not rated
81,5
47,8
176,2
0,0
305,5
81,5
468,0
394,5
5 349,3
6 293,3
Total sound assets
Non-impaired overdue financial assets, by age of the default
2013
Between
3 and 6
months
Between
6
months
and 1
year
0,0
0,4
0,0
0,0
0,4
Other
192,9
179,1
13,8
0,0
55,5
51,5
4,0
45,7
41,3
4,4
0,0
18,4
17,0
1,4
43,4
38,5
4,9
0,0
13,6
8,3
5,3
197,8
69,8
128,0
0,0
82,6
69,6
13,0
479,8
328,7
151,1
0,0
170,1
146,4
23,7
Total
248,4
64,5
57,0
280,4
650,3
Under 3
months
Greater
than 1
year
Total
2012
Between
3 and 6
months
Between
6
months
and 1
year
0,0
0,0
0,0
0,0
0,0
Other
20,0
12,5
7,5
0,0
68,3
56,9
11,4
13,1
11,4
1,7
0,0
21,1
18,7
2,4
21,5
18,4
3,1
0,0
15,0
9,2
5,8
90,2
29,5
60,7
0,0
87,3
76,9
10,4
144,8
71,8
73,0
0,0
191,7
161,7
30,0
Total
88,3
34,2
36,5
177,5
336,5
Under 3
months
Greater
than 1
year
Total
| 133
Individually impaired financial assets by economic activity sector
(in millions of
euros)
Business
sectors
Trade
Industry
Services
PW&CE
Tourism
Total
(in millions of
euros)
Business
sectors
Trade
Industry
Services
PW&CE
Tourism
Total
2013
Loans and
receivables to
PLMT (long and
CBM
FCT (Short-Term
CBI (real estate
lending
medium-term
Other
Total
(equipment
Total
Financing)
leasing)
institutions
loans)
leasing)
Gross
Gross
Gross
Gross
Net
Net
Gross
Gross
Net
Net
Net
Gross
Net
Net
Gross
Net
amou
amoun
amoun
amoun amoun
amoun amoun
amou
amount
amount
amount
amount
amount
amount amount amount
nt
t
t
t
t
t
t
nt
55,8
14,6
12,1
2,9
0,0
0,0
53,6
14,4
2,2
0,2
0,0
0,0
7,1
0,8
5,0
2,1
68,2
21,5
41,7
9,9
0,0
0,0
64,3
20,1
3,9
1,4
0,0
0,0
24,7
3,5
17,0
6,4
189,2
56,5
15,6
4,0
0,0
0,0
183,1
54,7
4,4
0,4
1,7
1,4
7,7
0,9
7,9
3,1
25,6
4,6
1,5
0,4
0,0
0,0
12,2
3,5
13,4
1,1
0,0
0,0
0,3
0,0
1,2
0,4
9,3
2,1
4,4
0,5
0,0
0,0
8,0
1,0
0,0
0,0
1,3
1,1
4,1
0,4
0,3
0,1
0,0
0,0
321,2
93,7
23,9
3,1
3,0
2,5
348,1
99,3
43,9
5,6
31,4
12,1
75,3
17,7
2012
Loans and
receivables to
PLMT (long and
CBM
FCT (Short-Term
CBI (real estate
lending
medium-term
Other
Total
(equipment
Total
Financing)
leasing)
institutions
loans)
leasing)
Gross
Gross
Gross
Gross
Net
Net
Gross
Gross
Net
Net
Net
Gross
Net
Net
Gross
Net
amou
amoun
amoun
amoun amoun
amoun amoun
amou
amount
amount
amount
amount
amount
amount amount amount
nt
t
t
t
t
t
t
nt
54,1
15,1
10,6
4,0
0,0
0,0
51,6
14,8
2,5
0,3
0,0
0,0
6,0
2,4
4,6
1,6
81,9
24,4
41,6
14,0
0,0
0,0
77,6
22,0
4,2
2,3
0,1
0,1
21,5
7,8
20,1
6,2
127,2
36,8
18,8
7,1
0,0
0,0
120,7
34,5
4,8
1,0
1,7
1,3
6,7
2,6
12,1
4,5
37,3
10,9
2,1
0,7
0,0
0,0
20,3
5,8
17,0
5,1
0,0
0,0
0,4
0,2
1,7
0,5
19,6
6,2
4,3
1,7
0,0
0,0
18,2
5,1
0,0
0,0
1,4
1,1
3,9
1,5
0,4
0,2
0,0
0,0
288,4
82,2
28,5
8,7
3,2
2,5
320,1
93,4
38,5
14,5
38,9
13,0
77,4
27,5
statements
Offsetting of the assets and financial liabilities
Posted gross
amounts
ASSETS
Repurchase agreements, securities lending and similar
agreements
LIABILITIES
agreements
Amounts
offset in the
balance
sheet
367,1
-
367,1
270,8
105,5
-
-
-
-
-
-
-
432,2
-
432,2
270,8
153,0
8,4
4 277,9
-
4 277,9
-
41,5
4 236,4
Posted gross
amounts
2012
Amounts related to financial instruments not
Net amounts
offset in the balance sheet
shown in the
Impact of
balance
Collateral
offsetting
Net amounts
sheet
given/received
agreements
Amounts
offset in the
balance
sheet
503,9
-
503,9
367,1
136,7
0,1
-
-
-
-
-
-
593,4
-
593,4
367,1
224,2
2,1
3 645,9
-
3 645,9
-
39,2
3 606,7
| 135
statements
ASSETS
agreements
LIABILITIES
agreements
2013
Amounts related to financial instruments not
Net amounts
offset in the balance sheet
shown in the
Impact of
balance
Collateral
offsetting
Net amounts
sheet
given/received
agreements
Quantitative information relative to the guarantees held
The financial effect of the guarantees held on credit operations with the clientele (excluding innovation
activity) is measured by the amount of the eligible sureties (guarantees and collateral) in keeping with
the Basel 2 system, capped at the outstanding amount. Certain types of sureties such as mortgages,
pledges and assignments of debts, are notably not included in this amount.
The sureties amounted to €7,506 million on 31 December 2013, versus €6,470 million on 31
December 2012.
8.5
Market risks
Financial risks are defined as the risks of losses of economic value resulting from an unfavourable
evolution of the market parameters, which affect the overall balance sheet. The market parameters to
which Bpifrance Financement is subject are primarily interest rates and exchange rates. The risks
related to the usage of the cash of the guarantee funds are managed separately.
8.5.1. Objectives of the financial risks management policy
The financial management implemented by Bpifrance Financement strives to maintain the financial
balances in terms of liquidity, interest rates and exchange positions. To optimise the usage of its
financial means, the bank strives to limit the risks inherent to the financial markets, while minimising its
exposure to risks that are not part of its core business, such as financial, counterparty and operational
risks. Within this framework, it should be noted that Bpifrance Financement has no trading book in the
regulatory sense.
8.5.2. Actors involved in the management of the financial risks
The executive body makes decisions relative to the financial risks management within the framework
of the powers attributed to it by the Board of Directors. It also decides on isolated overruns of the
limits, or on corrective actions to be undertaken in order to absorb these overruns.
The ALM Committee and the Financial management committee, including the members of the
executive committee and the relevant managers, examine the interest and exchange rate risks, while
also ensuring the compliance with the established limits.
Outside of these periodic meetings, the ALM Committee can be called on to meet, notably in case of a
sudden change to the market parameters or if the fixed limits are exceeded.
8.5.3. Centralisation of the management of financial risks
Bpifrance Financement manages its balance sheet in such a way that its overall structure is balanced
in terms of interest rate and foreign exchange rate risk. The backing sought between usages and
resources is intended to limit the establishment’s exposure to financial risks. The overall rate and
exchange risks are measured each month, and governed by a system of limits. The rate and
exchange risks are hedged by means of future financial instruments negotiated on organised markets
or over-the-counter (primarily interest rate and currency swap contracts), or by means of operations
involving State securities.
8.5.4. Measurement of the risks and limits
Though the financial risks are presented in an aggregated manner, in keeping with the State’s request,
the specificity of the general interest missions carried out within the framework of the guarantee funds
requires separate and specific management of the financial risks of the guarantee funds.
The rate risk
Bpifrance Financement manages its overall rate risk: all of the rate positions are monitored by macrohedging on the level of the ALM domain of the Capital department and of the balance sheet. As such,
hedge instruments are kept in an overall management portfolio, and the assessment of their
contribution to the establishment’s rate risk reduction is integrated into the follow-up system.
The establishment’s rate risk is assessed through the variations of two indicators, namely the
sensitivity of the short-term interest margin in the case of an earnings risks, and the sensitivity of the
balance sheet net present value in case of value risks. The charts of the deadlocks by maturity
complete the system.
Analysis of the sensitivity of the cash flows
An interest rate variation of 100 basis points on the closing date would result in an increase (decrease)
of the earnings equal to the amounts indicated below. For the purposes of this analysis, all other
variables are presumed to remain constant. As a reminder, using the same basis, a similar analysis is
provided for 2012.
Increase
of 100 basis points
Decrease
of 100 basis
points
31 December 2013
Sensitivity of the 2013 interest margin
Sensitivity of the net present value of the 2013 balance
sheet
-6,0
6,0
-9,5
-8,9
31 December 2012
Sensitivity of the 2012 interest margin
Sensitivity of the net present value of the 2012 balance
sheet
1,0
-1,0
-80,5
82,8
The exchange risk
In view of the characteristics of its funding for companies, Bpifrance Financement is only occasionally
active in the exchange market. The established limits are intended to desensitise the establishment to
the risk of changing exchange rates.
For a currency, the measurement of the exchange risk is the exchange loss due to an immediate
variation of +/-15 % of the currency price (excluding structural position impact). The overall exchange
risk is the sum of the risks per currency. No account is taken of possible correlations between
currencies.
Sensitivity analysis
| 137
A 15% increase of the euro relative to the USD and GBP currencies, on 31 December 2013, would
have resulted in a decrease (increase) of the earnings in the amount of €0.009 million. For the
purposes of this analysis, all other variables, and notably interest rates, are presumed to remain
constant.
A 15% decrease of the euro relative to the USD and GBP currencies, on 31 December, would have
the same impacts but in the opposite direction from the ones previously mentioned, while assuming
that all other variables remain constant.
8.6
Liquidity risks
The liquidity risk corresponds with the bank’s inability to meet its obligations at an acceptable price, for
a given location and currency. This risk can occur in case of non-concomitance of the cash flows. The
refinancing risk (an integral part of the liquidity risk) arises when the funds needed to finance the nonliquid assets cannot be obtained within acceptable timeframes and at acceptable prices.
The group’s liquidity risk is monitored as part of a liquidity risk management policy validated by the
ALM Committee. The liquidity situation of Bpifrance Financement is assessed on the basis of internal
standards, alarm indicators and regulatory ratios.
8.6.1. Objectives of the liquidity risk management policy
From the viewpoint of cash management, the financial activity of Bpifrance Financement involves
gathering the necessary resources and managing them as well as possible in view of the usages, with
a general objective of operational balance for Bpifrance Financement and the preservation of its own
funds. It is also intended to comply with the standards imposed by the banking supervisor.
Overall, the establishment measures its medium and long-term financing needs on the basis of the
schedule of operations, new business hypotheses and outflow agreements for the transactions without
maturities. On these bases, the financing stalemate is externalized.
The forecasts for the financing of new activity needs are updated each month, on a monthly basis for
the 12 coming months, then on an annual basis beyond this horizon.
The limits relate to liquidity ratios at 1 month, and the hedging of the medium and long-term usages
via medium to long-term resources.
8.6.2. Actors involved in the management of the liquidity risk
The Executive Committee makes decisions relative to the liquidity risk management within the
framework of the powers attributed to it by the Board of Directors. It also decides on isolated overruns
of the limits, or on corrective actions to be undertaken in order to absorb these overruns.
The ALM Committee, which includes the members of the Executive Committee and the relevant
managers, examines the liquidity risk, while also ensuring the compliance with the established limits.
Meeting on a monthly basis, this Committee makes proposals regarding the management of financial
risks on the basis of dossiers prepared by the ALM domain Capital and Balance Sheet Department.
Outside of these periodic meetings, the ALM Committee can be called on to meet, notably in case of a
sudden change to the market parameters or if the fixed limits are exceeded.
8.6.3. Basic principle of the liquidity policy
The establishment measures its overall liquidity risks. A limit system has been established.
The finance division’s organisation is based on the principle of the separation of the market operation
functions from the steering, scheduling, control and reporting functions, since:
 the operational functions are carried out by the Financial Operations Department through the
Markets department, which alone is authorised to be active in the capital markets on behalf of
the overall Bpifrance Financement
 the steering and follow-up functions are provided by the Capital and Balance Sheet
Department;
8.6.4. Refinancing sources
Bpifrance Financement manages its balance sheet in such a way that its overall structure is balanced
in terms of liquidity. The backing sought between usages and resources is intended to limit the
establishment’s exposure to financial risks.
Bpifrance Financement is active in the financial markets, and notably on the domestic bond market.
Bpifrance Financement also has access to the LDD resources available through the Caisse des
Dépôts. Moreover, Bpifrance Financement adds to a portfolio of State securities, for which a
repurchase agreement secures access to interbank liquidity under the best rate conditions. Finally,
Bpifrance Financement has a stock of private liabilities available for use and eligible for refinancing
with the ECB.
8.7
Financial risks and liquidity risks
8.7.1. Financial management objectives of the guarantee funds
The allocations received from the public authorities are partitioned into guarantee funds that are
themselves grouped into financial management blocks, for which the differentiation criterion now
revolves around the backer. The financial management blocks correspond with portfolios of similarly
managed financial assets. There are three main financial management blocks:
 The AFT (Agence France Trésor) block that includes all of the funds provided by the State. It
represents the bulk of the managed assets of the guarantee funds;
 The CDC block as part of the France Investissement funds, provided by CDC Entreprises;
 The “Hived-off assets” block that includes the other small funds allocated by other backers
including ERDF, Idf, UIMM, textile, GL.
It should be noted that other financial management blocks exist within the Bpifrance Financement
procedures. As such, the regional guarantee funds are managed in a similar manner as two of the
financial management blocks.
8.7.2. Actors involved in the financial management of the guarantee funds
The guarantee financing Business Line Committee
The guarantee financing Business Line Committee reports to the Bpifrance Financement Audit
committee. Its role is to validate the general asset management orientations and provisions with
regard to the investment of the guarantee funds.
| 139
The Financial Management Committee
On the basis of the orientations adopted by the Guarantee financing business line committee, the
Financial Management Committee meets every quarter in order to implement the investment policy for
the guarantee funds.
8.7.3. Measurement of the financial management indicators of the guarantee funds
The financial management of the guarantee funds involves analysing, for the portfolio backing the
activities of the guarantee funds, the period’s financial activity, the liquidity of the portfolios, their
accounting and financial performances and the financial risks relating to them.
Evolution of the portfolios
The evolution of the portfolios lists all of the operations and traces the evolution of the portfolio’s
composition over the course of the period in question. The securities are classified according to the
applicable regulatory texts.
Liquidity
The guarantee funds are primarily divided into three blocks (AFT block, CDC and “Hived-off assets”),
for which the differentiation criterion revolves around the backer. The liquidity analysis involves
ensuring that a financial management block’s available assets (capital and interest from the securities)
are higher than the expected compensation.
The accounting and financial performances
The purpose of the performance analysis tables is to highlight the accounting and financial profitability
of the portfolios during the period in question, and to compare their financial performances with the
market rates and indices.
The performances are analysed by classifying the portfolio’s securities according to accounting and
internal standards (bond, State, money market and other risks).
The financial risks
The rate risk of the assets being used in the guarantee funds is measured using two indicators:
 The value risk: impairment loss of the fixed rate asset portfolio in case of a 1% increase of the
rates,
 The sensitivity of the financial earnings to rate changes over the course of the next 12 months:
loss of financial earnings on the assets in case of a 1% decrease of the rates.
8.8
Cash flows payable by the Bpifrance Financement group relative to its financial debts,
broken down by residual contractual maturity
2013
Annual flows (in millions of euros)
Book
value
Total
incoming
On(outgoing) demand
flows
Under 3
months
Between
3 and 12
months
Between
1 year
and 5
years
After 5
years
Repayment of term borrowings
State guaranteed bond loans
Lending establishments borrowings and
term accounts
Customer borrowings and term accounts
17 264
8 018
-19 309
-9 157
-8
0
-1 458
-2
-612
-149
-7 836
-3 509
-9 395
-5 497
6 906
2 340
-7 712
-2 440
0
-8
-1 440
-16
-385
-78
-3 485
-842
-2 402
-1 496
Repayment of short-term financing
Ordinary accounts
JJ loans
Deposit certificates and MTN (medium
term notes)
Securities sold under forward repurchase
agreements
5 891
225
0
-5 988
-225
0
-225
-225
0
-4 905
0
0
-858
0
0
0
0
0
0
0
0
1 394
-1 398
0
-722
-676
0
0
4 272
-4 365
0
-4 183
-182
0
0
-2
33
-28
45
0
0
0
0
0
6
-7
0
0
5
-21
0
0
22
0
22
-2
0
0
22
Under 3
months
Between
3 and 12
months
Between
1 year
and 5
years
Derivative instruments
Non-hedging derivatives: outgoing flows
Non-hedging derivatives: incoming flows
Hedging derivatives: outgoing flows
Hedging derivatives: incoming flows
2012
Annual flows (in millions of euros)
Book
value
Total
incoming
On(outgoing) demand
flows
After 5
years
Repayment of term borrowings
Livret de Développement Durable
(Sustainable Development Passbook)
State guaranteed bond loans
Lending establishments borrowings and
term accounts
Customer borrowings and term accounts
13 062
-10 891
-42
-54
-211
-4 518
-6 065
4 744
3 879
-5 349
-471
0
0
-37
0
-36
-23
-2 592
-447
-2 684
0
1 950
2 490
-3 370
-1 702
0
-42
-8
-8
-133
-19
-891
-589
-2 338
-1 043
Repayment of short-term financing
Ordinary accounts
JJ loans
Deposit certificates and MTN (medium
term notes)
Securities sold under forward repurchase
agreements
5 156
159
80
-5 324
-159
-80
-239
-159
-80
-4 711
0
0
-373
0
0
-1
0
0
0
0
0
1 294
-1 354
0
-980
-373
-1
0
3 623
-3 731
0
-3 731
0
0
0
0
6
0
20
-3
57
-58
3
0
0
0
0
0
7
-26
0
0
0
-18
0
0
50
-14
0
-3
0
0
3
Derivative instruments
Non-hedging derivatives: outgoing flows
Non-hedging derivatives: incoming flows
Hedging derivatives: outgoing flows
Hedging derivatives: incoming flows
The financing commitments given, i.e. €4.8 billion at the end of 2013 versus €3.9 billion at the end of
2012, have no contractual schedule. After the contract’s signing, they are disbursed at the customer’s
request. The guarantee commitments given (€11.8 billion at the end of 2013 versus €12.1 billion at the
| 141
end of 2012) can take the shape of disbursement flows if the company receiving the guaranteed loan
is in default and at the end of the recovery process carried out by the guaranteed establishment.
Faced with these financial liabilities, the Bpifrance Financement group has recourse to securities that
can be mobilised, either at the ECB, or through repurchase agreements, depending on the more
favourable rate conditions.

9.1
Note 9 - Disclosure of interests in other entities
Important assumptions and judgments
Certain subsidiaries and associated companies have not been included in the scope of consolidation
in view of their negligible or of contractual provisions indicating that control is in the hands of another
investor.
Setting aside these exclusions, the group does not have control over a not-insignificant subsidiary in
which it holds less than half of the voting rights, nor does it exercise significant influence on associated
companies in which it holds less than 20% of the voting rights.
9.2
Interests in subsidiaries
Minority interests in the group’s activities
The group does not have any equity interests in subsidiaries holding minority interests that are
considered to be significant.
Nature and extent of the significant restrictions
The group is subject to no significant legal, regulatory or contractual restrictions that would limit its
ability to access the group’s assets or to settle the group’s liabilities.
9.3
Interests in partnerships and associated companies
Interests in associated companies considered to be insignificant
The group holds interests in associated companies that are individually considered to be insignificant.
Overall book value
Overall amount of the shares
Net earnings from ongoing activities
Net of tax earnings from discontinued operations
Other elements of the overall earnings
Overall earnings
2013
2012
6,4
5,4
1,5
0,0
0,0
1,5
0,7
0,0
0,0
0,7
9.4
Interest held in non-consolidated structured entities
All of the interests held by Bpifrance Financement in non-consolidated structured entities are venture
capital structures organised into several funds and sub-funds. These structures, financed by Bpifrance
and its partners, globally represent €186.5 million of assets as on 31 December 2013 (€190.5 million
as on 31 December 2012), the majority of which are presented at fair value through profit or loss.
2013
2012
Nature and evolution of the risks in the structured nonconsolidated entities
Book value of the assets / liabilities
74,3
81,7
Item in the financial statements under which these assets / liabilities are
booked
AFS & JVR
AFS & JVR
Amount of maximum risk of loss exposure (balance sheet and offbalance sheet) (1)
74,3
81,7
Difference between the book value and the maximum risk of loss
0,0
0,0
(1) The maximum risk of loss exposure was valued by adding the balance sheet
outstandings to the ones from the off-balance sheet commitments, considering that the
sum of the amounts already committed and the ones having to be disbursed provide the
best representation of the maximum risk of loss in the structured non-consolidated entities.

10.1
Note 10 - Personnel benefits and other remuneration
Personnel expenses
Salaries and wages
Other social charges
Fiscal expenses
Defined contribution retirement expenses
Defined benefit retirement expenses
Incentive and profit-sharing
Allowances / write-backs for commitments relative to the personnel
Total personnel expenses
10.2
2013
-97,8
-36,6
-9,6
-10,7
-1,8
-7,7
0,0
2012
-100,5
-37,1
-9,0
-10,6
0,0
-6,5
1,2
-164,2
-162,5
Average staff
The average headcount on the payroll in 2013, expressed as full-time equivalents, was 1,677 in 2013
(versus 1,655 in 2012), 82% of whom were executive staff.
The balance of acquired rights in respect of individual training entitlement (Droit Individuel à la
Formation) stood at 26,694 days at end December 2013.
| 143
10.3
Other personnel benefits
Post-employment benefits: defined benefits plan
The defined benefits post-employment benefits are calculated in compliance with the June 2011 of the
IAS 19 standard: “employee benefits” and are hedged by means of provisions or group insurance
contracts.
Bpifrance Financement contributes to two defined benefit plans, one relative to retirement lump sum
benefits and the other relative to the health expenses of pensioners.
Retirement lump sum benefits
All obligations relative to the retirement lump sum payments are covered by a group insurance policy
and are estimated on the basis of the commitments assumed for the employees who opted for
retirement leave, and hypotheses concerning the retirement provisions for the other employees.
Health expenses of pensioners
The estimated commitments for the health expenses of pensioners have been provisioned in
compliance with the agreement of 20 December 2006 relative to the health provident fund.
Characteristics and risks
Bpifrance Financement based its estimates on its employee age pyramid, their date of entering active
employment and on a preliminary approach to social policy as it may emerge in the light of the
provisions of the law of 21 August 2003 on pensions reform, the branch agreement by the Fédération
Bancaire Française on 29 March 2005, and the applicable Social Security Financing law. These
hypotheses will need to be reviewed in the light of future established practice.
The plan benefits for retirement lump sum payments are acquired throughout the career on the basis
of the seniority within the company, with a ceiling of 6 months of gross wages, settled upon retirement.
The plan benefits for health expenses cover the employees and their successors in title, who retired
before 31 December 2006. They receive a monthly fixed contribution from the employer in the amount
of €27.54.
The fund, set up to hedge the commitments relative to retirement lump sum payments, has been
contractually externalized with the CNP. It is managed by the CNP within the framework of an
orientation set by the group, that provides its governance.
These defined benefit plans expose Bpifrance Financement to an actuarial risk that is notably linked to
the longevity risk (especially for the health expenses plan), to the interest rate risk and to the market
risks with regard to the hedge assets.
The fund’s assets
The breakdown of the fair value of the plan’s assets between different categories on the basis of the
nature of the assets and attached risks is the following:
2013
as %
2012
as %
UCITS
2,3
10%
3,1
14%
Monetary
Equities
2,5
12%
2,9
14%
Bonds
17,1
78%
15,3
72%
21,9
100%
21,2
100%
Balance
Significant actuarial hypotheses
The actuarial mortality assumptions are based on the public statistical mortality tables (TH 00-02 and
TF 00-02).
The retirement hypotheses are estimated on the basis of the employee’s age: 5% of the employees in
question would be under 60 years of age, 35% would be between the ages of 60 and 62 years, 55%
would be between 62 and 65 years old and 5% would be above 67 years of age.
The job turnover provisions primarily evolve on the basis of the employee’s age:
executive
nonexecutive
Under 35 years of age
Between 35 and 44
years
Between 45 and 54
years
7,60%
4,90%
3,60%
0,60%
1,00%
1,30%
55 years of age or more
1,40%
1,90%
The adopted discount rates of 1.00% (for retirement leave) and 2.50% (for other obligations), i.e. the
rate of first category bonds, were determined on the basis of the term for which these commitments
would be carried.
The economic hypotheses regarding the annual rate of wage increases and the revaluation rate of the
commitments for long-service medals are also part of the actuarial hypotheses.
Financing of the fund
Each quarter, the fund produces an analysis of the investment policy. Based on a prudence principle,
it is primarily invested in bond UCITS.
The defined benefit plans are entirely supplied by Bpifrance Financement. The contribution obligations
are determined by the contractual provisions based on actuarial elements.
Bpifrance Financement estimates that its contribution to the defined benefit plans for the 2014 fiscal
year are equal to €1.4 million.
As on 31 December 2013, the average duration of the obligation relative to the defined benefit plans
was 10.6 years for retirement lump sum benefits and 12.9 years for health expenses (respectively
10.6 years and 13.2 years in 2012).
An upward variation of 0.5% of the discounting rate would lead to a decrease of the commitment by
€1.2 million, while a 0.5% decrease would result in an increase of the commitment of €1.3 million.
Long service awards
| 145
Group employees receive bonus payments to mark the awarding of Medals of Honour in recognition of
a long working life. These commitments are provisioned on the basis of the agreement signed on 15
December 2011.
Supplementary pensions
The AFB professional agreement dated 13 September 1993 on the reform of retirement schemes for
the banking profession applies to the Bpifrance Financement staff. The payment of a supplementary
banking pension and rebates not covered by the fund for the vested rights of the staff on 31 December
1993 is covered by a reserve fund with sufficient resources to meet pensioners’ needs.
Early departures
With regard to early departures, Bpifrance Financement is committed to its personnel. These
commitments are provisioned.
Variation of the obligations pursuant to post-employment benefits
Variation of the obligations pursuant to
post-employment benefits
Obligations
relative
to defined
benefits
20,7
0,5
0,5
1,9
- 1,9
n/a
2,0
- 0,9
0,9
0,1
- 1,9
-
2,4
- 0,1
0,1
- 0,2
n/a
1,4
1,4
0,7
0,7
0,7
0,7
- 0,0
- 0,0
1,2
0,7
0,5
0,2
-
23,6
Obligations
relative
to defined
benefits
Plan
assets
Opening balance
Impacts in profit and loss statement
- Cost of services rendered during the period
- Interest on liabilities / assets relative to the defined benefits
- Cost of past services
- Effects of variations of foreign currency prices (n/a)
- Contribution to the employer's plan (*)
- Contribution to the participant's plan (*)
- Profit or loss resulting from the liquidation
- Paid services
- Actuarial discrepancies (relative to other long-term benefits)
22,6
- 0,4
0,9
0,6
- 1,9
n/a
Impacts in gains and losses booked in shareholders equity
- Actuarial discrepancies
> of which actuarial gains and losses on adjustments related to
demographic hypotheses
> of which actuarial gains and losses on adjustments of the
financial hypotheses
- Rate of return of the plan's assets
- Change of the effect of the asset ceiling
Closing balance
Health
expenses
Total
2013
Bonds
Plan
assets
Liabilities /
(assets)
net
26,5
- 1,2
1,0
0,7
- 0,5
- 2,4
- 0,0
20,7
0,5
0,5
1,9
- 1,9
n/a
5,8
- 1,7
1,0
0,2
- 0,5
- 1,9
- 0,5
- 0,0
n/a
1,4
1,4
0,7
0,7
0,7
0,7
- 0,0
n/a
1,2
0,7
0,5
0,2
-
n/a
0,2
-
0,2
-
-
-
-
-
-
-
21,9
1,7
2,3
0,8
26,7
21,9
4,8
| 147
statements
Liabilities
/
(assets)
net
Long-service
awards
Obligations
relative
to other longterm
benefits
1,5
- 0,7
0,1
0,0
- 0,5
- 0,3
- 0,0
Variation of the obligations pursuant to
post-employment benefits
Opening balance
Impacts in profit and loss statement
- Interest on liabilities / assets relative to the defined
benefits
- Effects of variations of foreign currency prices (n/a)
- Contribution to the employer's plan (*)
- Contribution to the participant's plan (*)
- Paid services
- Actuarial discrepancies (relative to other long-term
benefits)
Impacts in gains and losses booked in shareholders
equity
> of which actuarial gains and losses on adjustments
related to demographic hypotheses
> of which actuarial gains and losses on adjustments of
the financial hypotheses
- Rate of return of the plan's assets
- Change of the effect of the asset ceiling
Closing balance
18,2
0,7
-
Liabilities /
(assets)
net
2,4
- 1,4
0,8
Health
expenses
Obligations relative
to defined
benefits
2,4
- 0,1
-
Long-service
awards
to other long-term
benefits
1,9
- 0,5
0,1
0,7
0,5
0,2
0,1
- 2,1
2,4
- 2,1
- 2,4
n/a
to defined
benefits
20,6
- 0,6
0,8
Total
2012
Bonds
Plan
assets
25,0
- 1,2
0,9
18,2
0,7
-
Liabilities /
(assets)
net
6,8
- 1,9
0,9
0,1
0,8
0,5
0,4
-
- 0,2
- 0,5
- 2,8
2,4
- 2,1
- 2,4
- 0,7
n/a
n/a
n/a
- 0,2
- 0,2
n/a
- 0,2
2,6
1,8
0,9
0,1
-
2,8
1,8
1,0
2,6
1,8
0,9
0,1
n/a
2,8
1,8
1,0
0,6
1,8
- 1,2
- 0,0
n/a
0,6
1,8
- 1,2
2,0
-
2,0
0,2
n/a
2,2
-
2,2
-
-
-
-
-
-
-
-
22,6
20,7
1,9
2,4
1,5
26,5
20,7
5,8
Plan
assets
statements
Effect of the retrospective application of the amendment to the IAS 19 standard
“Personnel benefits”
Subsequent to the amendment of IAS 19, the opening balance sheet of Bpifrance Financement has
not been restated in view of the insignificant stakes. For illustrative purposes, Bpifrance Financement
lists the headings of the balance sheet and profit and loss statement that would have been impacted.
These impacts are related to the recognition of the actuarial gains and losses in shareholders equity
(and no longer through profit or loss) and to the replacement of the expected yield rate for the plan’s
assets, with the discounting rate used for the debt (rate of return from the market for bonds from highquality companies).
In the balance sheet
P A S S I F (en millions d'euros)
31/12/2011 avant
amendement
IAS 19
01/01/2012
retraité
Impact
31/12/2012 avant
amendement
IAS 19
Impact
31/12/2012
retraité
Capitaux propres
2 073,6
2 073,6
2 695,5
2 695,5
Capitaux propres part du Groupe
2 042,1
2 042,1
2 665,1
2 665,1
- Capital et réserves liées
1 161,3
1 161,3
1 700,2
1 700,2
761,7
761,7
849,5
0,35
21,1
17,3
0,35
98,0
98,1
- Réserves consolidées
849,5
- OCI
20,7
- Résultat
98,4
Intérêts minoritaires
31,5
31,5
30,4
30,4
- Réserves
27,6
27,6
28,4
28,4
3,9
3,9
2,0
2,0
- Résultat
-
-
-
0,55
16,8
0,55
98,6
-
To the income statement
(en millions d'euros)
31/12/2011 avant
amendement
IAS 19
Charges générales d'exploitation
-
245,5
Impôt sur les bénéfices
-
49,4
-
-
10.4
01/01/2012
retraité
Impact
31/12/2012 avant
amendement
IAS 19
0,54
-
246,0
-
270,8
0,19
-
49,2
-
52,3
Impact
-
0,35
31/12/2012
retraité
0,84
-
270,0
0,29
-
52,6
0,55
Compensation paid to members of executive and supervisory boards
The compensation paid to directors during the fiscal year was equal to €843 million.
Directors do not receive any attendance fees.
| 149

Note 11 - Sector-specific information
The Bpifrance Financement group is primarily active in the following business lines:
 co-financing: this involves medium and long-term financing in the form of direct loans, leasing
on plant & equipment and property, and financial leases,
 short-term financing which includes the operations to participate in the financing of public
sector receivables in France and its overseas departments and territories, either directly or by
signature,
 the guarantee actions cover banks and equity investment institutions from risks of the failure of
the beneficiaries of the financing,
 innovation financing aid in the form of repayable advances or subsidies.
Under the “Other” heading are notably the venture capital activities carried out through the Venture
Capital Mutual Funds (Avenir Entreprises Développement, Avenir Entreprises Mezzanine) and the
income from equity interests.
2013
NBI
Operating costs
Cost of risk
Operating income
Financing
Guarantee Innovation
336,9
84,4
51,0
-166,4
-61,4
-69,4
-76,4
0,6
0,0
94,2
23,6
-18,4
Other
8,3
0,0
0,0
8,3
Total
480,8
-297,2
-75,8
107,8
2012
Financing
Guarantee Innovation
347,6
104,8
47,3
-161,9
-53,2
-74,6
-64,8
0,1
0,0
120,9
51,7
-27,3
Other
6,4
0,0
0,0
6,4
Total
506,1
-289,7
-64,7
151,7
NBI
Operating costs
Cost of risk
Operating income
Gross outstandings
Co-financing
Short-term financing
Guarantees given
2013
18 058,1
1 941,5
614,9
11 819,0
2012
15 377,1
935,1
645,4
12 079,5
Reminder:
The guarantee funds amounted to €2,296.5 million in 2013, versus €2,173.7 million in 2012.
The subsidies provided as part of the innovation activity amounted to €246.9 million in 2013 versus
€314.6 million in 2012.

Note 12 - Financing and guarantee commitments
Commitments given
Loan financing commitments
in favour of lending institutions
in favour of the clientele
Innovation aid financing commitments
Guarantee commitments
in favour of lending institutions
in favour of the clientele
Commitments on securities (securities to deliver)
Commitments received
Financing commitments received from lending institutions
Guarantee commitments received from lending institutions
Commitments on securities (securities to receive)

13.1
2013
2012
16 661,2
4 238,7
10,5
4 228,2
603,5
11 819,0
0,0
11 819,0
0,0
16 785,9
3 911,3
10,0
3 901,3
795,1
12 079,5
17,3
12 062,2
0,0
3 495,6
2 479,5
1 016,1
0,0
2 091,2
1 182,0
908,2
1,0
Note 13 - Other information
Related parties
The Bpifrance Financement group’s related parties are the companies included in the scope of
consolidation shown in note 4, non-consolidated interests, as well as the companies exerting control
over the group.
Information relative to related companies
The transactions common to the fully integrated companies are eliminated in the consolidated financial
statements.
The transactions with companies exercising control over the group are listed in the column
“Companies exercising joint control”. These are transactions carried out with the EPIC BPI-Groupe
and the Caisse des Dépôts.
The transactions with companies integrated using the equity method are listed in the “Associated
companies” column.
The transactions with other related but non-consolidated entities are shown in the column “Other
related parties”.
| 151
31 December 2013
Balance sheet
Companies
Parent
exercising Associated
company
joint
companies
control
Other
related
parties
Total
Assets
Loans and advances
Equity instruments
Other receivables
0,0
0,0
0,4
1,2
0,0
97,8
82,2
6,4
0,0
0,0
76,5
0,8
83,4
82,9
99,0
Total assets
0,4
99,0
88,6
77,3
265,3
Liabilities
Deposits
Term borrowings
Other liabilities
46,6
0,0
0,1
116,6
5 469,3
0,0
0,0
0,0
2,3
0,2
0,0
3,3
163,4
5 469,3
5,7
Total liabilities
46,7
5 585,9
2,3
3,5
5 638,4
Miscellaneous information
Guarantees issued by the group
Guaranties received by the group
Impairment of doubtful receivables
10,0
0,0
0,0
0,0
0,0
0,0
12,2
0,0
0,0
0,0
0,0
0,1
22,2
0,0
0,1
Profit and loss statement
Companies
Parent
exercising Associated
company
joint
companies
control
Other
related
parties
Total
Total expenses, including:
Interest expenses
Fees and commissions
Services received
Other
0,1
0,0
0,0
0,1
0,0
194,3
194,3
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
2,5
0,0
0,0
0,0
2,5
196,9
194,3
0,0
0,1
2,5
Total proceeds, including:
Interest income
Services provided
Dividend income
Other
0,4
0,0
0,0
0,4
0,0
0,0
1,3
1,1
0,0
0,2
0,0
0,0
1,7
1,3
0,0
0,3
0,1
0,0
0,9
0,0
0,0
0,8
0,0
0,1
4,3
2,4
0,0
1,7
0,1
0,1
Other information
Charges for the year pertaining to
doubtful loans
0,0
0,0
0,0
0,0
0,0
31 December 2012
Balance sheet
Parent
company
Companies
with
Associated
notable
companies
influence
Other
related
parties
Total
Assets
Loans and advances
Equity instruments
Other receivables
0,0
0,0
42,4
1,6
0,0
26,2
60,3
5,4
0,0
0,0
83,9
1,0
61,9
89,3
69,6
Total assets
42,4
27,8
65,7
84,9
220,8
Liabilities
Deposits
Term borrowings
Other liabilities
95,9
1 643,8
0,3
0,0
4 216,5
0,0
0,0
0,0
0,0
0,2
0,0
6,9
96,1
5 860,3
7,2
Total liabilities
1 740,0
4 216,5
0,0
7,1
5 963,6
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,1
0,0
0,0
0,1
Miscellaneous information
Guarantees issued by the group
Guaranties received by the group
Impairment of doubtful receivables
Parent
company
Companies
with
Associated
notable
companies
influence
Other
related
parties
Total
Total expenses, including:
Interest expenses
Services received
Other
51,5
51,5
0,0
0,0
0,0
157,9
157,9
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,7
0,0
0,0
0,0
0,7
210,1
209,4
0,0
0,0
0,7
Total proceeds, including:
Interest income
Services provided
Dividend income
Other
0,2
0,0
0,0
0,2
0,0
0,0
2,2
1,0
0,0
0,0
0,0
1,2
1,1
1,0
0,0
0,0
0,1
0,0
0,8
0,0
0,0
0,7
0,0
0,1
4,3
2,0
0,0
0,9
0,1
1,3
Other information
Charges for the year pertaining to
doubtful loans
0,0
0,0
0,0
0,0
0,0
| 153
13.2
Fees paid to the Statutory auditors and members of their networks
Mazars
Pre-tax
amount
(in thousands of euros)
2013
KPMG
%
2012
2013
Pre-tax
amount
2012
2013
PwC
%
2012
2013
Pre-tax
amount
2012
2013
EY
%
2012
Pre-tax
amount
2013
2012
2013
%
2012
2013
2012
AUDIT
Auditing, certification, examination of the individual and
consolidated financial statements
- Epic BPI-Groupe
- Globally integrated subsidiaries
Other reviews and services directly related to the mission
of the Statutory Auditors
19
#DIV/0!
3%
19
#DIV/0!
5%
#DIV/0!
#DIV/0!
-
#DIV/0!
0%
377
#DIV/0!
90%
314
#DIV/0!
88%
#DIV/0!
#DIV/0!
30
#DIV/0!
6%
#DIV/0!
#DIV/0!
-
#DIV/0!
0%
-
#DIV/0!
0%
#DIV/0!
#DIV/0!
-
#DIV/0!
0%
24
#DIV/0!
6%
20
#DIV/0!
6%
#DIV/0!
#DIV/0!
-
#DIV/0!
0%
-
420
#DIV/0!
100%
-
352
#DIV/0!
100%
#DIV/0!
#DIV/0!
30
#DIV/0!
6%
- Epic BPI-Groupe
-
-
#DIV/0!
0%
-
-
#DIV/0!
0%
#DIV/0!
#DIV/0!
-
#DIV/0!
0%
-
-
#DIV/0!
0%
-
-
#DIV/0!
0%
#DIV/0!
#DIV/0!
-
#DIV/0!
0%
#DIV/0!
#DIV/0!
- Epic BPI-Groupe
AUDIT SUBTOTAL
-
-
-
OTHER SERVICES
Legal, fiscal and social
Other
- Epic BPI-Groupe
-
-
#DIV/0!
0%
-
-
#DIV/0!
0%
#DIV/0!
#DIV/0!
-
#DIV/0!
0%
- Globally integrated subsidiaries (*)
-
-
#DIV/0!
0%
-
-
#DIV/0!
0%
#DIV/0!
#DIV/0!
466
#DIV/0!
94%
OTHER SERVICES SUBTOTAL
-
-
#DIV/0!
0%
-
-
#DIV/0!
0%
-
-
#DIV/0!
#DIV/0!
-
466
#DIV/0!
94%
TOTAL
-
420
#DIV/0!
100%
-
352
#DIV/0!
100%
-
-
#DIV/0!
#DIV/0!
-
495
#DIV/0!
100%
(*) : including €450,000 of preparatory, coordination and appraisal work carried out as part of the national financing aid for the creation of companies involved in innovative technologies and €16,000 for actuarial
consulting
Individual financial statements
Publishable balance sheet of Bpifrance Financement
ASSETS (in millions of euros)
Notes
Cash, central banks
31/12/2013
31/12/2012
173,5
115,0
Treasury notes & similar securities
6
6 063,6
4 758,1
Receivables from credit institutions
- A vue
- A terme
3
342,5
192,9
149,6
327,7
223,6
104,1
Customer loans
- Autres concours à la clientèle
- Comptes ordinaires débiteurs
4
19 361,6
18 891,6
470,0
15 986,4
15 460,9
525,5
6
372,4
665,8
6
0,0
0,0
Investments in subsidiaries, other long-term investment
securities
7
96,6
98,4
Investments in affiliates
7
81,6
1 079,8
Fin. & plain leasing with purchase option
5
5 047,8
4 604,1
Operating lease
5
243,3
229,4
8
46,9
41,5
8
12,8
11,7
Subscribed but unpaid capital
0,0
0,0
Treasury shares
0,0
0,0
9
1 081,9
1 102,7
Other assets
10
1 161,5
1 091,7
Accruals
11
362,7
221,8
34 448,7
30 334,1
TOTAL ASSETS
| 155
Publishable balance sheet of Bpifrance Financement
LIABILITIES (in € millions)
Notes
Central banks
31/12/2013
31/12/2012
0,0
3,0
- Sight a/c
- Term a/c
12
11 162,5
1,8
11 160,7
10 827,5
6,8
10 820,7
Customer loans
13
2 959,1
3 015,5
2 959,1
240,0
2 719,1
3 015,5
191,5
2 824,0
- Other debts
. Sight a/c
. Term a/c
Debt securities
- Interbank market securities & negotiable debt instruments
- Bond loans
14
9 123,1
1 395,4
7 727,7
5 204,3
1 293,9
3 910,4
Other liabilities
15
2 328,5
2 864,8
Accruals
16
1 273,0
962,0
Provisions
17
448,2
405,9
Subordinated debts, mutual guarantee deposits
18
26,6
26,0
19
3 073,0
3 035,0
20
1 835,7
1 787,8
235,2
235,2
1 983,8
750,9
729,1
211,8
188,9
43,7
46,6
12,8
1 967,1
750,9
729,1
211,8
188,2
30,5
43,8
12,8
34 448,7
30 334,1
Fund for general banking risks
Shareholders equity excluding contingencies fund (FRBG)
- Subscribed capital
- Issue premiums
- Merger premiums
- Reserves
- Regulated provisions, investiment subsidies
- Retained earnings
- Profit or loss for the fiscal year
TOTAL LIABILITIES
21
Publishable off-balance sheet of Bpifrance Financement
Commitments given
- Financing commitments
. Commitments to lending institutions
. Commitments to customers
Note
31/12/2013
31/12/2012
24
10,5
4 831,7
660,0
4 696,4
0,0
11 278,3
17,3
11 579,0
0,0
0,0
0,0
0,0
- Financing commitments
. Commitments received from lending institutions
. Commitments received from the clientele
2 479,5
0,0
1 182,0
0,0
- Guarantee commitments
. Commitments received from lending institutions
1 198,1
2 750,2
- Commitments on securities
. Securities sold with buyback or recovery option
. Other commitments received
0,0
0,0
0,0
1,0
- Guarantee commitments
. Guarantee commitments to lending institutions
. Commitments to the clientele
- Commitments on securities
. Securities acquired with buyback or recovery option
. Other commitments given
Commitments received
| 157
Bpifrance Financement publishable profit and loss statement
Notes
31/12/2013
31/12/2012
Interest income
26
729,2
713,5
27
-507,6
-479,1
Income on leasing and related transactions
28
947,3
900,5
Expense on leasing and related transactions
29
-810,6
-812,0
Proceeds from plain renting operations
28
96,9
91,1
Charges on plain renting operations
29
-115,8
-110,9
Income from variable income securities
30
1,5
1,7
Commissions (income)
31
19,7
29,8
Commissions (expenses)
31
-0,6
-0,5
+/- Gains or losses on trading portfolio transactions
32
0,0
0,0
+/- Gains or losses on long-term portfolio and similar transactions
33
0,3
0,0
Other bank operating income
34
90,3
117,0
Other bank operating expenses
35
-23,6
-45,6
427,0
405,5
-278,4
-273,2
Depreciation allowances and allowances for deprec. on tang. &
intang. fixed assets
-18,6
-16,4
130,0
115,9
-80,2
-58,5
49,8
57,4
0,2
0,6
50,0
0,0
58,0
0,0
-24,0
-38,9
-13,2
-6,3
NET BANKING INCOME
Cost of risk
36
37
OPERATING INCOME
+/- Gains or losses on non-current assets
38
CURRENT PRE-TAX EARNINGS
Extraordinary profit or loss
Income tax
Charges to/recoveries from the FGBR and regulatory provisions
41
NET EARNINGS
12,8
12,8
Accounting Appendix
5
2. KEY FIGURES
6
8
48
61
65
67
68
155
204
229
12. PERSONS RESPONSIBLE FOR THE REFERENCE DOCUMENT AND FOR AUDITS
231
233
| 159

NOTE 1 - PRESENTATION AND ASSESSMENT RULES
The annual financial statements are drawn up and presented in accordance with regulation n° 91-01
from the [French] Banking and Financial Regulations Committee (CRBF) as amended by regulation n°
2000-03 from the [French] Accounting Regulations Committee (CRC).
1.1


Presentation of the financial statements
Balance sheet

Loans and related debts are classified under the asset or liability items on which interest is
due to or from.

The securities portfolio is broken down according to the types of securities that comprise it:
public sector bills, bonds and other fixed income securities, shares and other variable income
securities. The breakdown depends on the intended economic purpose of the securities
(trading, short-term or long-term investment) and is described in note 6.2.

Subordinated loans are classified according to their nature either as amounts due from banks
or amounts due from customers, or as “bonds and other fixed income securities”.

Doubtful loans are recorded according to their nature under the asset items to which they are
attached, in the net depreciation amount.

On the liabilities side, mutual guarantee deposits are included under the heading of
“subordinated debt”.

The section “Shareholders equity excluding FGBR” covers the following items: “subscribed
capital”, “issuing premiums”, “merger premiums”, “reserves”, “regulatory provisions and
investment subsidies”, “retained earnings” and “net income”.

The equipment subsidies received for leasing transactions are shown in the “Other liabilities”
section.
In accordance with amended CRC regulation n° 2000-03, the presentation of the profit and loss
statement is now based on five intermediate management balances, each precisely defined: Net
Banking Income, Gross Operating Income, Operating Income, Pre-tax Income and Net Income.
The significant components of the profit and loss statement are described in notes 26 to 41.
1.2

Accounting principles and methods
Credit risk
Transactions that generate a credit risk are recognised in accordance with the provisions of the
modified CRC regulation n° 2002-03.
A distinction is made between sound loans, restructured loans, doubtful loans and doubtful
compromised loans.
The classification of credit transactions is based on the concept of established credit risk. The risk is
considered to be recognised once it is probable that part of the sums owed by a counterparty will not
be received and that this probability of loss is associated with one of the following situations:



there are one or more overdue instalments aged at least three months (three months for
personal property credit and leasing and six months for real estate loans);
the establishment is aware of the degraded financial situation of the counterparty, which is
represented by a risk of non-collection;
claim and collection procedures are in place between the institution and its counterparty.
Sound outstandings
The credit transactions that do not generate a confirmed risk, on the other hand, are acknowledged as
being sound outstandings.
Restructured outstandings
The receivables said to be restructured are defined as receivables held on counterparties that have
experienced financial difficulties, such that the establishment has had to review the receivable’s initial
characteristics.
Doubtful loans
Credit transactions that generate a recognised risk are doubtful outstandings, or “bad debt.” For a
particular counterparty, all these credit transactions will be classified by “tainting” as doubtful
outstanding loans.
Credit operations become compromised if the recovery prospects are significantly deteriorated, and if
an eventual transfer to losses is envisaged.
The events that lead to downgrading as a compromised doubtful outstanding loan are:



expiry of loan term;
the contract’s cancellation;
closure of relations with the customer.
One year after the classification as a doubtful loan, the loan is considered to be compromised, except
if the transfer to losses is not envisaged. The existence of guarantees is taken into account in the
consideration of compromised outstandings.
When it is confirmed that the outstanding loans are non-collectible, these assets are transferred to
losses.
The compromised doubtful outstanding loans are identified within doubtful outstanding loans.
Segmentation of outstanding loans
The kind of activity of the institution leads to the outstanding loans being segmented by:



residual maturity;
business sector;
main counterparty types.
As part of its commercial policy, its selection process and its risk control, Bpifrance Financement uses
an internal rating system.
| 161
Depreciations allocated to doubtful loans with the clientele
Depreciations charged against doubtful loans are deducted from the corresponding assets.
Depreciations which Bpifrance Financement has deemed necessary against potential risks relating to
certain activity sectors, and the ones charged against off-balance sheet commitments, are entered as
liabilities on the balance sheet.
The amount of depreciations for medium and long-term loans and other loans, whether or not backed
by guarantee funds, is determined dynamically, receivable by receivable, after analysis of the loss
estimated on the basis of probable recoveries, guarantees included, discounted at the original loan
rate.
On the closing date, the net depreciation outstanding is equal to the lower of the historical cost and the
current value of the future cash flows expected from interest, repayment of the capital and the value of
the guarantees.
The depreciation allowances and write-backs for non-recovery risk are recorded in the cost of risk.
The increase of the book value related to the discount amortisation and the depreciation recovery as a
result of passing time being recorded as part of the interest margin.
Depreciations of the guarantee commitments given and of the innovation aids
With regard to the guarantee commitments given, the depreciation corresponds with the capital loss
as well as with the contractual interest covered by the guarantee funds. The capital loss is assessed
on the basis of a statistical model for estimating potential recoveries. These depreciation do not impact
the profit and loss statement, but are charged against the guarantee funds.
Regarding innovation aids, the depreciations are statistically estimated on the basis of the operative
events that resulted in the transfer to doubtful loans. These depreciation do not impact the profit and
loss statement, but are charged against the innovation guarantee funds.
Dynamic collective provisioning
In 2000, a method for the dynamic provisioning of new loans on generation was implemented by the
group.
In 2007, in view of the change to the IFRS standards for the consolidated financial statements,
Bpifrance Financement reviewed its methodology for estimating the collective provisioning.
The counterparties for which there is no objective indication of individual impairment are the subject of
an analysis by uniform portfolios. The existence of a credit risk involving a uniform set of receivables
results in the recording of a provision, without waiting for the risk to have individually affected one or
more receivables.
The methodology implemented by Bpifrance Financement is primarily based on an analysis of the
internal ratings of the overall portfolio. The assessment model for collective provisions is now based
on simulations of stochastic scenarios that, with each counterparty, associate a possible default date
and a loss rate given default. Previously, collective provisions were provisioned on the basis of loss
rates per product resulting from market practices.
The approach proposed is open-ended and pragmatic, bearing in mind that the laws of statistics can
offer no certainties.
The collective provision is booked on the balance sheet under liabilities. As risks arise, depreciations
for doubtful debts are booked and charged against the outstanding loans concerned, while the
collective provision is recovered at the same rate.

Early repayments of loans granted to customers
Bpifrance Financement directly records, through profit or loss, the compensation for early repayment
of loans granted to the clientele, on the realisation date.

Leasing transactions
Bpifrance Financement engages in equipment leasing, finance leasing and real estate leasing
activities, a residual part of which is subject to the SICOMI regime.
In the corporate financial statements, these transactions appear on the balance sheet in the sections
“leasing and rental agreements with purchase option” and “plain leasing” and in the income statement
in the sections “proceeds from leasing transactions and similar,” “charges for leasing and similar” and
“proceeds from plain leasing,” “charges for plain leasing.”
The leased or rented property, plant and equipment are reported on the corporate balance sheet at
their purchase value, which, for leasing, includes the acquisition costs, the cost of construction and the
purchase price of the land.
Accounting depreciation, subject to the limits of both maximum fiscal depreciation and the minimum
straight-line allowance, is calculated item by item, with the exception of land which is not depreciated.
If a contract becomes delinquent, if the estimated value of the likely recoveries is less than the
property’s book value, the difference is the subject of depreciation in the Net Banking Income.
Compensation for contract terminations is posted to “Proceeds from leasing transactions and similar”.
The depreciations that are designed to cover the compensation due are also recorded in this account.
Linked to this corporate presentation is a financial presentation, which translates the economic
substance of the transactions. Rents are broken down into (a) interest and (b) amortisation of the
capital referred to as financial amortisation.
On the financial balance sheet, the financial outstanding appears which is equivalent to the gross
value of property, plant and equipment minus the financial amortisation and financial depreciations.
In the profit and loss statement, the Net Banking Income takes in the interest included in the rents
incurred during the fiscal year and the financial capital gains or losses on the sound financial loans,
and in the cost of risk, variations in financial depreciations and financial capital gains or losses on the
delinquent financial loans.
The financial data are outlined in notes 5, 39 and 40.
| 163

Balance sheet transactions
Operations involving securities are posted in compliance with the amended CRBF regulation n° 90-01.
The portfolio consists of marketable securities, Treasury bills, negotiable debt instruments and
interbank market certificates.
Depending on the intended economic purpose of the transactions and the risks associated with each,
securities are divided into four categories, each subject to specific accounting rules:
Trading securities
These are securities which are:




either acquired or sold with the intention of reselling them or buying them in the short term;
or held by an establishment as a result of its market maker activity;
or acquired or sold within the framework of specialised portfolio management;
or the subject of a sale commitment as part of an arbitrage operation.
They are recorded on the date of acquisition at their purchase price, with accrued interest but less
expenses. At each accounts closing date, they are marked to market. The overall balance of the
differences resulting from price variations is included in the Net Banking Income.
Marketable securities
This portfolio consists of securities that cannot be included amongst the trading securities, nor
amongst the long-term investment securities, nor amongst the portfolio activity’s securities, other
securities held for long-term, equity interests and shares in related companies.
They are recorded at their acquisition cost, but without accrued interest or expenses.
The differences between the acquisition price of fixed income securities and their redemption price are
staggered over the residual lifespan of these securities, by using the actuarial method.
At the accounts closing date, they are marked to market in the case of listed securities or valued on
the basis of their share in the net situation of the firm. If this price is lower than their book value, they
are subject to a provision for depreciation which is charged against Net Banking Income.
The gains resulting from hedging take the form of purchases or sales of future financial instruments,
and are included for the calculation of depreciations.
Investment securities
These are fixed-income securities acquired with the intention to hold to maturity.
They are financed from specific resources or interest rate hedged. They are recorded at their
acquisition price, but excluding accrued coupon and expenses at purchase. The difference between
the acquisition cost and the redemption price is actuarially spread over the remaining life of the
security. At the accounts closing date, unrealised capital losses are not provisioned unless they carry
a counterparty risk.
Should some of these securities be sold before their maturity for a significant amount, the entire
portfolio would be downgraded to short-term investment securities, for the current fiscal year and the
two following fiscal years, barring exceptions indicated in the texts.
Securities used for portfolio activity
Portfolio investment relates to securities acquired on a regular basis with the aim of realising a
medium-term capital gain and with no intention of long-term investment in the development of issuing
company, or of active participation in its management. The activity must be exercised on a significant
and ongoing scale within a structured framework that provides the institution with a recurrent return on
investment deriving principally from the capital gains on disposals. Included in this category are
securities held in the context of a venture capital activity; such securities are posted, depending on
their type, to the accounts “Bonds and other fixed income securities” and “Shares and other variable
income securities”.
They are measured at the accounts closing date at the lower of cost price or utility value determined in
the light of the general development outlook for the issuer and the length of time for which the
securities will be held. If necessary, they are subject to depreciation which is set against Net Banking
Income.
Repurchase agreements
Operations involving securities in repo transactions are recorded in compliance with the amended
CRBF regulation n° 89-07.
Securities received in repo transactions are shown as assets in an account which reflects the liability
generated. The corresponding income is recorded in Net Banking Income.
Securities sold in repo transactions give rise to a liability. They are maintained in their original portfolio
and continue to be valued according to the rules applicable to that portfolio.
Off-balance sheet operations
These transactions are recorded in compliance with the provisions of CRBF amended regulations n°
88-02, n° 89-01 and n° 90-15 and of CRC amended regulation n° 2002-03.
They are classified on the basis of the notional amount and of the market value of the contracts and
are distinguished according to their intended economic purpose (see note 25).
Results from these operations are reported in Net Banking Income
Hedging transactions make up the bulk of the transactions negotiated:


Income and expenses relating to forward financial instruments intended, and so designated
1
from the outset, to hedge an item or homogenous group of items (micro-hedging ) are
recorded as and when income and expenses on the hedged elements are booked;
Income and expenses relating to instruments used to adjust the nature of resources to
requirements defined within the framework of overall management of interest rate or currency
2
positions (macro-hedging ) are booked pro rata temporis.
1
Transactions classified as micro-hedging include interest rate swap contracts negotiated as hedging for operations to refinance
business activities or as hedging for the long-term investment securities portfolio, operations on futures markets to hedge
interest rate risks on this portfolio, and foreign exchange operations (forward exchange rate agreements, currency swap
agreements).
2
Transactions classified as macro-hedging include interest rate and currency swap contracts negotiated as part of the overall
management of the Bpifrance Financement positions under the terms of article 2.1c of modified CRBF regulation n° 90-15. Also
included under this heading are transactions on organised futures markets as part of overall management of interest rate risk.
| 165
In the event of cancellation of interest rate or currency swap contracts negotiated as part of overall
management of interest rate positions, any payments received or made are spread over the residual
life of the cancelled contract.
As regards transactions that constitute opening isolated open positions:



Transactions negotiated on an organised or related market are valued at each accounts
closing date. the corresponding gains or losses impact directly on Net Banking Income;
The results of transactions negotiated on an over-the-counter market are recognised
according to the nature of the instruments, either on unwinding of the contracts or pro rata
temporis. Unrealised losses recognised at the accounts closing date impact upon Net Banking
Income.
Equity interests and shares in related companies, other long-term investment securities
These securities are listed at the acquisition price, excluding expenses.
Equity investments, investments in non-consolidated subsidiaries
The provisions governing these categories of securities are set out in the CRC regulations n° 2000-02
and n° 2005-01 as amended.
Investments in non-consolidated subsidiaries are shares in the capital of companies. Their long-term
ownership is considered useful to the activity of the companies which own them, either because it
permits the owner to exercise an influence on the issuing company, or because it reflects a
partnership relationship.
These securities are valued at the lower of either their cost price or their going price at the year-end.
Going price represents the amount the company would be prepared to pay to acquire the securities in
view of its intention in holding them. It may be determined by reference to market value, net asset
value, the future earnings prospect of the issuing company, the outlook for realisation, economic
circumstances. If this value is less than book value, a provision for depreciation is charged to “Gains
or losses from fixed assets”.
Other long-term investment securities
These are investments in securities made with the intention of promoting the development of lasting
professional relationships by creating a privileged relationship with the issuing company, but one that
does not create a position of influence on the management of that company in view of the limited
number of voting rights held. These securities are valued by the same method as investments in nonconsolidated subsidiaries and in affiliates.

Tangible and intangible fixed assets
Fixed assets are recorded in compliance with CRC regulation n° 2002-10.
Fixed assets are depreciable or non-depreciable assets from which the company expects to derive
future economic advantage.
The depreciation of a fixed asset is the systematic distribution of its depreciable amount in accordance
with its use.
The depreciation allowance appears in the “Depreciation allowances and depreciations on intangible
and tangible fixed assets” in the profit and loss statement.
Exceptional depreciation resulting from the application of the General Tax Code is recognised under
“Charges to/recoveries from the FGBR and regulatory provisions” in the income statement.

Guarantee funds and net innovation intervention resources
In order to deal with its economic general interest mission, the State provides Bpifrance Financement
with public resources intended to cover the commitments resulting from this mission. The activities
covered by these funds are firstly guarantees for bank loans, and secondly the distribution of
innovation aids primarily in the form of subsidies and repayable advances.
The resources provided by the State are shown on the asset side of the balance sheet and are
decreased by losses and provisions established on the operations in question. For the bulk of the
provided resources, the financial proceeds resulting from cash investments are reallocated.
The main affected items for these economic general interest activities are:



on the asset side, aid for innovation financing (cf. note 9);
in the off-balance sheet, the guarantees given (cf. note 24);
on the liabilities side, the guarantee funds (cf. note 19), the innovation intervention resources
(cf. note 20).
Given that they are repayable, the guarantee funds meet the definition of debt instruments. In view of
their specificity and importance for the group, they are included as balance sheet liabilities in the
specific headings entitled “Public guarantee funds” and “Innovation guarantee funds”.
They are assessed at cost. This assessment includes the allocations collected, in addition to the share
of the earnings paid to the funds (commissions, net financial proceeds, participation in the capital
gains on securities), net of any recognised bad debts (expenses, litigation provisions and pre-litigation
provisions).
The gains, losses and provisions assigned to the guarantee funds, as described in notes 19.2 and
20.2, do not transit via the profit and loss statement. The expenses and proceeds are not taxable.
Similarly, public partners, primarily regions, provide Bpifrance Financement with resources intended to
finance subsidies and repayable advances. The net amount of these resources is grouped together
with the innovation guarantee funds, under the heading “Net innovation intervention resources”.
| 167

Fund for General Banking Risks
In accordance with amended CRBF regulation 90-02, appropriations to the Fund for General Banking
Risks are made at the discretion of the directors in order to meet expenses and risks of an exceptional
nature in the banking sector.

Currency transactions
Currency transactions are treated in accordance with amended CRBF regulation n° 89-01.
Assets, liabilities and off-balance sheet items are converted into euros at the rate prevailing on the
accounts closing date.
Differences arising from the mark to market of currency positions are reported in Net Banking Income.

Interest and commissions
Interest and commissions are reported in Net Banking Income using the accrual method.
The commissions and handling charges for insignificant amounts are not the subject of spreading.

Borrowing charges
Bond issue expenses and redemption or issue premiums are spread over the life of the issue pro rata
to the accrued interest. The resulting charge is reported in Net Banking Income.
The annual interest expense of loans with a rising interest rate or with a single coupon is accounted
for on the basis of the yield to maturity cost.

Tax situation
Bpifrance Financement is the parent company for the following tax consolidation group:
AUXICONSEIL, AUXIFINANCES and the Compagnie Auxiliaire Bpifrance.

Pensions and other social commitments
Post-employment benefits
They include the retirement lump sum payments, the banking sector retirement supplements and
health expenses after employment.
These benefits fall into two categories: the defined contribution plans (not representative of a
commitment to be provisioned for the company) and the defined benefit plans (representative of a
commitment at the company’s expense and resulting in an assessment and provisioning).

Defined contribution plan
A defined contribution plan is a plan for post-employment benefits according to which an entity pays
defined contributions (as an expense) to a separate entity and will have no legal obligation to pay
additional contributions if the fund does not have sufficient assets to provide all of the benefits
corresponding with the services provided by the personnel during the periods in question.

Defined benefits plan
The obligations, hedged by an insurance contract, are assessed using an actuarial method that
considers demographic and financial assumptions such as age, seniority, the probability of presence
on the date of the awarding of the benefit, and the discounting rate (rate of return from the market for
the bonds of high quality companies).
This calculation includes a distribution of the expense over time on the basis of the activity period of
the personnel members (projected credit units method). The recognition of the obligations takes into
account the value of the assets established in order to hedge the obligations and actuarial elements.
The expenses relative to defined benefit plans consist of the cost of the benefits rendered during the
year, the interest on the liabilities or net assets relative to the defined benefits (at the market rate of
return of the bonds of high-quality companies), the contributions to the employer’s plans, and the
benefits paid.
Possible actuarial gains and losses (revaluations), the yields on plan assets (excluding interest) and
the consequences of reductions and possible liquidations of plans are booked through profit or loss in
compliance with the second method listed in recommendation n° 2013-02 of the Accounting Standards
Authority (ANC).

Long service awards
Group employees receive bonus payments to mark the awarding of Medals of Honour in recognition of
a long working life. These commitments are provisioned on the basis of the agreement signed on 15
December 2011.

Supplementary pensions
The AFB professional agreement dated 13 September 1993 on the reform of retirement schemes for
the banking profession applies to the Bpifrance Financement staff. The payment of a supplementary
banking pension and rebates not covered by the fund for the rights acquired by staff at 31 December
1993 is covered by a reserve fund with sufficient resources to meet pensioners’ needs.

Early departures
With regard to early departures, Bpifrance Financement is committed to its personnel. These
commitments are provisioned.
Cessation of employment compensation
This involves compensation paid to employees at the time of the termination of their employment
contract, prior to retirement, whether in case of dismissal or acceptance of a voluntary departure plan.
The end of employment contract allowances are provisioned. The benefits paid more than 12 months
after the closing date are the subject of discounting.
Significant actuarial hypotheses
The actuarial mortality assumptions are based on the public statistical mortality tables.
The job turnover provisions primarily evolve on the basis of the employee’s age, based on historical
statistical data.
The adopted discount rate of 2.50%, rate of first category bonds, was determined on the basis of the
term for which these commitments would be carried.
| 169
The economic hypotheses regarding the annual rate of wage increases and the revaluation rate of the
commitments for long-service medals are also part of the actuarial hypotheses.

NOTE 2 - SIGNIFICANT EVENTS DURING THE FISCAL YEAR AND EVENTS AFTER THE CLOSING
2.1

Significant events during the fiscal year
Establishment of Bpifrance
Law n°2012-1559 of 31 December 2012 amending order n°2005-722 of 29 June 2005 established the
legal framework providing for the creation of the Banque Publique d’Investissement (BPI), as well as
its governance provisions. Holding company held by the EPIC BPI-Groupe for 50% and by the Caisse
des Dépôts (CDC) for 50%, it includes OSEO, CDC Entreprises (CDCE) and the Fonds Stratégique
d’Investissement (FSI – Strategic Investment Fund).
The contribution operations were performed on 12 July 2013.
As on 31 December 2013, BPI-Groupe (Bpifrance) holds:



89.7% of the capital of Bpifrance Financement (former SA OSEO);
100% of the capital of CDCE-1 (company holding 99.4% of Bpifrance Investissement – former
CDCE);
100% of the capital of Bpifrance Participations (former FSI).
As such, the reference shareholder of Bpifrance Financement is henceforth BPI-Groupe (Bpifrance),
that has the status of a financial company as replacement for the EPIC BPI-Groupe. The rest of the
capital is primarily held by banks within the market.

As part of the group restructuring, the Board of Directors meeting on 26 June 2013 authorised the
dissolution, through the transfer of all assets and liabilities without liquidation of OSEO Industrie, a
100% subsidiary of Bpifrance Financement that occurred in the 3rd quarter of 2013.
2.2
Events after the closing
No significant event occurred after the closing date of the financial statements.

NOTE 3 - RECEIVABLES FROM CREDIT INSTITUTIONS
2013
2012
Demand deposits and overnight loans
192,9
223,6
Term accounts and loans
149,0
103,8
0,0
0,0
Subordinated loans
Doubtful debts
. Gross amount
. Depreciations
0,4
0,0
0,0
0,0
Net amount
0,4
0,0
0,2
0,3
342,5
327,7
82,2
60,1
Total (*)
(*) Of which refinancing loans for subsidiaries or equity interests
Breakdown of sound outstandings (excluding accruals) by residual maturity at 31 December
2013
(in millions of
euros)
Outstandings
D≤3m
3 m. < D ≤ 1 year
1 year < D ≤ 5
years
D > 5 years
222,1
11,2
40,6
68,0
341,9
| 171

NOTE 4 - TRANSACTIONS WITH CUSTOMERS - ASSETS
This note describes loan and financing transactions for short-term receivables.
2013
Overdrafts
2012
33,9
14,1
1 762,9
831,6
Medium and long-term loans (1)
of which credits restructured at non-market conditions
7 822,9
Accounts opened with Agence France Trésor
. Sight a/c
4 943,4
6 870,6
2,8
3,2
4 780,5
436,1
. Term a/c
511,4
4 507,3
Other loans and subordinated loans
of which credits restructured at non-market conditions
4 175,9
Doubtful debts
. Gross amount (2)
. Depreciations (3)
. Allocated callable guarantee funds (4)
Net amount
Total (5)
(1) Of which receivables used as guarantee for loans contracted with the:
- Council of Europe Development Bank (CEDB)
- Proximité SME Funds
Bpifrance Financement continues to manage these receivables
(2) Before deduction of any guarantees
(3) Not including collective provisions shown as balance sheet liabilities
(4) This item represents the depreciations established on the guarantee funds
(5) Of which eligible debts with the Eurosystème (ECB)
4 269,1
3 215,5
2,9
0,0
826,7
-124,8
-117,2
463,4
-103,8
-116,9
584,7
242,7
37,9
31,4
19 361,6
15 986,4
57,3
447,3
89,2
474,3
2 864,4
1 630,0
Without modifying the total amount of doubtful receivables, amended CRC Regulation n° 2002-03 has
them broken down as follows:
doubtful
outstandings
impaired
doubtful loans
TOTAL
Outstandings
479,8
346,9
826,7
Depreciations
0,0
-124,8
-124,8
Allocated callable guarantee funds
0,0
-117,2
-117,2
479,8
104,9
584,7
Net amount
Breakdown of loans outstanding (excluding related receivables) on 31 December 2013

By residual maturity
3 m. < D ≤ 1
year
D≤3m
Sound outstandings
5 524,6
1 year < D ≤ 5
years
2 621,5
D > 5 years
6 251,6
4 341,3
18 739,0

By economic business sectors
Sound outstandings
Trade
Industry
Services
PW&CE
Tourism
TOTAL
12 328,5 (*)
653,9
690,0
18 739,0
237,3
426,3
62,3
30,2
826,7
-24,6
-63,6
-9,3
-5,7
-124,8
1 887,1
3 179,5
Doubtful loans
70,6
Depreciations
-21,6
(*) Including €4,943.4 million with the Agence France Trésor

By major types of counterparty
(in millions of
euros)
Sound
outstandings
Central
Lending
Non-lending
gov. agencies
insitutions
institutions
Companies
Retail
TOTAL
clientele
4 943,4
0,0
0,0
13 628,6
167,0
18 739,0
Doubtful loans
0,0
0,0
0,0
823,6
3,1
826,7
Depreciations
0,0
0,0
0,0
-124,5
-0,3
-124,8
| 173

NOTE 5 - LEASING AND RENTAL TRANSACTIONS
Fund flows recorded during the 2013 fiscal year
Finance
lease and
real estate
immovables
Gross value of prop., plant & equip. as at
31/12/2012
2 590,3
8 618,3
807,5
559,0
1 366,5
-329,0
-401,9
-730,9
6 506,5
2 747,4
9 253,9
-1 956,2
-1 526,4
-3 482,6
-482,8
-0,8
-483,6
-25,0
-5,8
-30,8
4 042,5
1 214,4
5 256,9
20,8
13,4
34,2
4 063,3
1 227,8
5 291,1
38,5
402,5
441,0
4 101,8
1 630,3
5 732,1
44,8
424,4
0,0
0,0
44,8
424,4
Exits
Gross value of prop., plant & equip. as at
31/12/2013
Total depreciations on 31/12/2013 (*)
Total allocated guarantee funds on 31/12/2013
Net value of prop., plant & equip. on 31/12/2013
Net receivables
Subtotal
Unrealised reserve
Net financial outstanding on 31/12/2013
(*) Of which - Provisions under Sicomi art. 64
- Art. 57 provisions

TOTAL
6 028,0
Entries
Finance
lease and
real estate
movables
NOTE 6 - SECURITIES PORTFOLIO
6.1 Fund flows recorded during the 2013 fiscal year
Treasury notes
and similar
securities
Entries and other movements (1)
Exits
Change in related receivables
Total depreciations on 31/12/2013 (2)
4 758,1
1 314,0
-21,4
12,9
6 063,6
0,0
6 063,6
Bonds and other
fixed income
securities
Equities and
othervariable
income
securities
666,9
821,1
-1 114,5
-0,4
373,1
-0,7
372,4
(1) Depreciation of premiums / discounts
(2) Depreciations for unrealised capital losses and bad debts
The following table gives details of the share of securities held for the use of the guarantee funds:
Treasury notes
Bonds and
Equities and
1,1
0,0
0,0
0,0
1,1
-1,1
0,0
and stocks
similar
other fixed
income
securities
other variable
income
securities
0,0
183,2
0,0
Total depreciations on 31/12/2013
0,0
0,0
0,0
0,0
183,2
0,0
Breakdown of the
31 December 2013
fixed
income
D≤3m
Public sector bills
and
similar securities
Bonds and other
fixed income
securities
securities
3 m. < D ≤ 1
year
portfolio
1 year < D ≤ 5
years
by
residual
D>5
years
maturity
on
attached
TOTAL
receivables
0,0
23,3
730,1
5 224,5
85,7
6 063,6
77,0
77,0
166,0
189,3
43,7
773,8
82,1
5 306,6
3,6
89,3
372,4
6 436,0
6 346,7
6.2 Breakdown by portfolio type (net amounts, including related receivables)
2013
Public bills
of
exchange
and
similar
securities
2012
Equities and
other variable
other fixed income
income
TOTAL TOTAL
Securities
Securities
nonnonlisted
listed
listed
listed
Securities securities Securities securities
Bonds and
Investment
104,0
60,0
0,5
0,0
0,0
Investment
5 959,6
311,9
0,0
0,0
0,0
164,5
6
271,5
418,1
5 005,8
6
436,0
5 423,9
(*)
Total
6 063,6
372,4
0,0
(*) Of which : - Securities issued by the State or local bodies : 0.0
- Securities issued by other issuers : 372.4
Securities sold on repo amounted to €4,080.8 million at the end of 2013, compared with €3,340.6
million at the end of 2012 (amounts expressed in net book value).
The net value of investment securities contains a provision for counterparty risk of €1.5 million.
| 175
6.3 Transfers between portfolios and sale of investment securities before maturity
There were no transfers between portfolios over the course of the year.
6.4 Portfolio valuation (including related receivables) on 31 December 2013
gross
accounting
Market
value
Difference
value
Marketable securities
Investment securities (*)
164,8
165,3
0,5
6 271,5
6 590,4
318,9
Unrealised
capital loss
(excluding
doubtful
receivables)
Unrealised
capital
gains
-0,2
0,7
(*) Long-term investment securities, for the most part OAT government bonds, are used in the overall management of
the establishment’s liquidity and interest rate positions, with the general objective of hedging against risks.
In particular, they are used to meet requirements for securities arising from the process of securitisation of interbank
transactions and exchange systems.

NOTE 7 - EQUITY INVESTMENTS AND OTHER LONG-TERM SECURITIES, INVESTMENTS IN NONCONSOLIDATED SUBSIDIARIES
7.1 Flows recorded during the 2013 fiscal year
Other securities
Equity interests
held for the
long term
10,6
94,6
Investments in
affiliates
1 079,9
Entries and other movements
1,0
10,9
Exits and other movements
0,0
-11,0
Change in related receivables
0,0
0,0
-1 005,0 (2)
0,0
11,6
94,5
81,7
Total depreciations on 31/12/2013
0,0
-9,5
-0,1
11,6
0,0
11,6
85,0
0,0
85,0
81,6
0,0
81,6
Net amount on 31/12/2013 (1)
(1) Of which : - Listed securities
- Non-listed securities
6,8
(2) Cancellation of the OSEO Industrie securities for €1,000.0 million after the transfer of all assets and liabilities on
4 September 2013 to Bpifrance Financement (cf. note 2.1 Significant events of the fiscal year)
7.2 Minority interests and investments in affiliates
% of capital owned
Registration with the
Corporate name
companies register
Value of the securities
held by the Cpy
Gross
Capital
Net
Total
Earnings
Earnings
capital
current
net
propres
bef. taxes
Pre-tax
turnover
fiscal
year
Direct-
Indirect-
ly
ly
98,99%
-
9 599
9 599
4 800
14 610
2 605
1 734
73,22%
58,19%
-
1 096
10 395
1 096
10 395
12 097
35 746
22 950
35 703
-3
-5
-3
-5
social
2013
before result
Loans and
advances
Amount of the
Dividends
collected on
still
sureties and
endorsements
given
repaid
by the company
the fiscal year
granted and not
during
I - ASSOCIATED COMPANIES (1) (Article L. 233-1 of the [French] Commercial code)
Companies included in the scope of consolidation
Guarantee
Bpifance Régions
Equity investment:
AED FCPR C1
AED FCPR C2
Créteil B 319 997 466
4 275
Counterparty activities
Compagnie Auxiliaire Bpifrance
Créteil B 562 007 963
100,00%
-
3 199
3 199
2 592
15 009
103
103
170
Property
AUXI-FINANCES
Créteil B 352 780 605
100,00%
-
57 168
57 168
57 187
65 981
3 282
2 024
8 480
100,00%
-
2 896
0
2 896
0
2 850
3 479
0
0
58
50,00%
270
165
1
1
56
62
114
Other
AUXI-CONSEIL
Créteil B 352 792 667
FCT PROXIMITE PME
Companies not included in the scope of consolidation :
SCI TOPOR MONTAUBAN
Créteil B 340 905 389
100,00%
14 164
1 300
82 197
144
II - EQUITY INTERESTS (2) (Article L. 233-2 of the [French] Commercial code)
Companies included in the scope of consolidation
ALSABAIL - 7 place Sébastien Brant - 67000
STRASBOURG
Strasbourg B 718 504
004
40,69%
-
5 365
5 365
9 704
17 649
2 646
1 716
AUXI-ASSURANCE - 27-31, Av du Gal
Leclerc 94710 MAISONS-ALFORT
Créteil B 351 596 572
34,00%
-
1 000
1 000
306
579
1 192
795
20,00%
-
356
340
2 004
6 352
3 188
1 760
-
967
967
8 425
12 637
-5
-5
1 823
59 299
53 937
111 030
110 012
-321
-321
2 213
-
19 450
16 349
42 936
39 968
896
896
-1 024
Companies not included in the scope of consolidation :
Bpifrance Investissement Régions - 27-31, Av
du Gal Leclerc 94710 MAISONS-ALFORT
Paris B 401 749 502
Briey B 382 532 554
10,55%
-
2 919
2 918
27 675
(4)
27 158
-1 026
FIST SA - 83 bld Exelmans-75016 PARIS
Paris B 388 461 154
30,40%
-
343
343
1 128
(4)
2 002
-26
20
IFCIC - 46 avenue Victor Hugo -75016 PARIS
Paris B 327 821 609
25,65%
-
722
722
2 817
(4)
9 426
1 662
1 072
10,62%
-
956
162
2 922
(4)
2 775
-1 253
-1 253
16,91%
-
4 165
4 165
6 594
(4)
29 246
2 430
1 009
41,49%
-
6 011
6 011
9 075
(4)
11 956
270
190
4 545
67
4 349
67
INCOM - 62 rue Pierre Charron -75008
Paris B 335 040 838
PARIS
SIAGI - 2 rue Jean-Baptiste Pigalle -75009
Paris B 775 691 074
PARIS
SOGAMA Crédit Coopératif -75, rue SaintLazare - 75009 PARIS
PARIS B 352 086 003
III – OTHER SUBSIDIARIES AND INVESTMENTS IN AFFILIATES (3)
French companies
Foreign companies
(1) Net book value in excess of €50,000 and holding in excess of 50 %.
(2) Net book value in excess of €50,000 and holding in excess of 10 %.
(3) Percentage of holding less than 10%.
(4) Accounts on 31.12.2012
84
| 177
AED FCPR C3 - 137 rue de l'Université 75007 PARIS
AED FCPR C4 - 137 rue de l'Université 75007 PARIS
AVENIR ENT. MEZ FCPR - 137 rue de
l'Université - 75007 PARIS
EUREFI - Maison de la Formation, Centre
Jean Monnet -54414 LONGWY
7.3 Outstanding loans from transactions with affiliates or companies in which an equity
interest is held
RECEIVABLES
Clientele
Other assets and accruals
84,5 (1)
46,6 (2)
26,1
85,9 (3)
DEBTS
Clientele
Debt securities
Subordinated debts
Other liabilities and accruals
3 829,7 (4)
2 194,1 (5)
0,0
0,0
3,2
COMMITMENTS GIVEN
Financing commitments
- Lending institutions
- Clientele
10,0 (6)
10,0 (7)
- Clientele
0,0
3,3 (8)
Commitments on securities
- Clientele
0,0
0,0
(1) - Dont ALSABAIL : 82,2
(2) - Dont AUXIFINANCES : 14,2
SCI d'OSEO : 14.6
Compagnie Auxiliaire Bpifrance : 17.9
(3) - Dont EPIC BPI-Groupe : 71,7
SCI d'OSEO : 8.1
Bpifrance Régions : 2.8
(4) - Dont Caisse des Dépôts : 3 829,7
(5) - Dont EPIC BPI-Groupe : 1756,3
FCT Proximité PME : 373.3
Bpifrance : 46.6
(7) - Dont Bpifrance : 10,0
Operations with related parties are negotiated at arm’s length.

NOTE 8 - TANGIBLE AND INTANGIBLE FIXED ASSETS
Intangible
fixed assets
Land and buildings
operating
Other
non-operating
122,3
16,9
2,2
19,6
Acquisitions
23,0
3,2
0,0
2,5
Exits
-2,2
-1,1
-0,1
-0,7
143,1
19,0
2,1
21,4
-96,2
-12,3
-1,5
-15,9
46,9
6,7
0,6
5,5
Total
46,9
12,8
Fixed assets are depreciated annually, on a straight line basis for buildings, or fixtures and fittings, or
on an accelerated basis for IT equipment, according to their estimated useful life, in general:
 Software
:
from 1 to 5 years
 Buildings
:
from 25 to 55 years
 Fittings, furnishings and office equipment
:
from 4 to 10 years
 IT hardware
:
4 years
The amount of exceptional amortisation & depreciation is €43.5 million on 31 December 2013.

NOTE 9 - INNOVATION FINANCING AIDS
Fund
Gross
sound
amounts
Gross
doubtful
amounts
Depre- Allocated
ciations guarantee
funds
TOTAL
TOTAL
Innovation aid - ISI (*)
705,5
187,5
-0,3
-157,3
735,4
787,2
PMII - ISI 2008 (*)
185,4
39,2
0,0
-39,2
185,4
168,2
12,7
0,0
0,0
0,0
12,7
6,5
Strategic sectors
0,0
0,0
0,0
0,0
0,0
0,0
FRGI (*)
5,9
0,1
0,0
0,0
6,0
1,8
142,4
0,0
0,0
0,0
142,4
139,0
PSPC (*)
Aid on partners financing
Total
1 051,9
226,8
-0,3
-196,5
1 081,9
1 102,7
(*) PMII : Programme Mobilisateur pour l'Innovation Industrielle (Mobilising Programme for industrial innovation)
initiated by the former AII (Industrial Innovation Agency)
ISI : Industrial Strategic Innovation
PSPC : Structuring projects of the competitiveness clusters
FRGI : Innovation Guarantee Regional Funds
| 179

NOTE 10 - OTHER ASSETS
2013
2012
Purchased conditional instruments
0,3
0,3
Settlement accounts for securities transactions
0,7
0,7
interest rate swap contracts
194,5
224,2
Allocation to be received on guarantee funds
150,1
0,0
3,7
4,0
722,5
748,2
89,3
114,0
0,4
0,3
1 161,5
1 091,7
Guarantee margins paid on repurchase transactions and
Subsidies to be received on leasing operations
Allocation to be received on innovation aid financing
Other sundry debtors
Stocks and sundry assets
Total

NOTE 11 - ACCRUALS - ASSETS
2013
2012
Securities deposited for settlement
7,3
21,1
Loan issue fees awaiting allocation
9,5
5,8
14,8
25,9
7,0
4,6
66,3
67,2
5,1
5,5
127,6
0,8
71,7
42,2
0,0
17,1
Other
53,4
31,6
Total
362,7
221,8
Loan issue premium awaiting allocation
Other prepaid expenses
Income receivable on forward financial instruments (*)
Proceeds to be received on leasing operations
Medium and long-term direct debits in progress
Guarantee commissions to be spread Epic BPI-Groupe EMTN
Accrued revenues OSEO Industrie
(*) This income essentially represents the total difference between interest receivable and interest
payable on each interest rate swap contracts

NOTE 12 - DUE TO CREDIT INSTITUTIONS
2013
2012
Demand deposits
1,3
4,4
0,0
5
636,8
0,0
6
616,8
Overnight borrowings
Term borrowings
. including Livret Développement Durable (LDD or Sustainable
Development Passbook) resources
. including EIB, KfW and BDCE loans
Refinancing with the ECB
Securities sold under forward repurchase agreements (*)
Other payables
Total
(*) Of which - Public sector bills
4 736,2
5 126,3
825,0
900,0
1
190,0
500,0
4
3
271,8
623,2
0,5
2,4
62,1
80,7
11
162,5
10
827,5
4
271,8
0,0
3
623,2
0,0
Breakdown of debts (excluding accruals) by residual maturity at 31 December 2013
D≤3m
3 m. < D ≤ 1 year
1 year < D ≤ 5
years
D > 5 years
5 485,6
416,7
2 723,5
2 474,6
11 100,4
| 181

NOTE 13 - TRANSACTIONS WITH CUSTOMERS - LIABILITIES
2013
Loan with the Epic BPI-Groupe
2012
1 621,5
1 724,4
Loan with the Proximité PME fund
373,3
400,0
Security deposits
389,1
311,4
Demand deposits
240,0
191,5
3,8
3,8
300,0
300,0
5,6
22,6
. Short-term financing
0,4
2,2
. Medium and long-term loans
3,5
36,3
21,9
23,3
2 959,1
3 015,5
5,6
22,6
0,0
0,0
Customer time deposits
State shareholder advance
Securities sold under forward repurchase agreements (*)
Funds received awaiting allocation
Other payables
Total
(*) Of which - Public sector bills
Breakdown of customer deposits by residual maturity at 31 December 2013
D≤3m
3 m. < D ≤ 1 year
1 year < D ≤ 5
years
D > 5 years
351,9
186,0
804,6
1 616,6
2 959,1

NOTE 14 - DEBT SECURITIES
Breakdown of outstanding debts by residual maturity on 31 December 2013
D≤3m
3 m. < D
≤ 1 year
1 year <
D
≤5
years
D>5
years
Attached
TOTAL
debts
Interbank market securities
and negotiable debt instruments
Bonds (*)
721,2
0,0
673,0
0,0
0,0
2 911,0
0,0
4 764,0
1,2
52,7
1 395,4
7 727,7
Total
721,2
673,0
2 911,0
4 764,0
53,9
9 123,1
(*) As a supplement to the €61 million PIBOR bond loan maturing on 20/11/2015, the outstandings of the bond issues carried
out as part of the Bpifrance Financement EMTN (Euro Medium Term Notes) is equal to €7,614 million euros as on 31
December 2013. The update of the prospectus, on 3 June 2013 as approved by the Financial Markets Authority (AMF), sets a
new ceiling of €20 billion for this programme, for which the issues are subject to guarantee by the EPIC BPI-Groupe and are
rated Aa1 by the Moody's agency on 31 December 2013.

NOTE 15 - OTHER LIABILITIES
Payments due on securities not fully paid up
2013
2012
3,3
506,9
24,4
14,8
and interest rate swap contracts
105,5
175,9
Advances from lessees
230,7
202,4
Equipments subsidies to be received on leasing operations
41,2
48,3
Suppliers of lease finance
54,3
49,6
9,3
10,5
580,0
580,0
0,5
88,7
1 234,1
1 148,0
0,0
1,0
Other sundry creditors
14,7
9,5
Miscellaneous advances
30,5
29,2
2 328,5
2 864,8
Tax and company receivables
(1)
Guarantee margins received on repurchase agreements
Other miscellaneous creditors for leasing operations
Debts backing the preserved capital fund
Guarantee commissions earned in advance from customers (2)
Disputes to be paid on guarantee funds
Public subsidies
Total
(1) Including €500.0 million of subscribed capital not called by OSEO Industrie
(2) the decrease of the commissions earned in advance is linked to the reclassification of the unique and simplified
unique commissions in the regularisation account
| 183

NOTE 16 - ACCRUALS - LIABILITIES
2013
Allocation spread Development Participatory Loan
2012
33,5
24,9
5,0
5,0
10,6
12,0
Early repayment and loan restructuring penalties
0,4
0,6
Other deferred income
0,4
0,2
Expenses payable on forward financial instruments (2)
70,7
93,4
Provisions for paid holidays
24,6
23,1
Deferred lease rent
61,5
56,4
Subsidies to be paid on innovation aid
599,2
599,9
Guarantee commissions booked in advance (3)
164,7
18,6
17,8
26,9
284,6
101,0
1 273,0
962,0
Mark to market of off-balance sheet currency
in foreign currencies (1)
Adjustments related to negotiation or cancellation operations
for interest rate swap contracts
Innovation pending accounts
Miscellaneous
Total
(1) This item includes revaluation differences on off-balance sheet transactions put in place for hedging purposes involving
balance sheet transactions
(2) These expenses primarily represent the total negative difference between interest receivable and interest payable for each
interest rate swap contract.
(3) The increase of the guarantee commissions recorded in advance is linked to the reclassification of the unique and
simplified unique commissions in the regularisation account

NOTE 17 - PROVISIONS
Provisions on credit risks
2013
2012
406,3
370,2
Provisions for employee benefit commitments (*)
15,5
16,2
Provisions related to innovation activity
11,0
8,5
Other
15,4
11,0
Total
448,2
405,9
(*) Retirement lump sum payments are covered by an insurance contract with assets equal to 23.6 million after
payment of the 2013 premium of 1.9 million.

NOTE 18 - SUBORDINATED DEBTS, MUTUAL GUARANTEE DEPOSITS
2013
2012
Reserve funds (*)
12,0
11,3
Mutual guarantee deposits
14,6
14,7
26,6
26,0
(*) The reserve fund has been created by former OSEO garantie shareholders, and its purpose is to hedge the
outstanding guaranteed loans that it backs. Its reimbursement requires a decision by the shareholders.
| 185

NOTE 19 - PUBLIC GUARANTEE FUNDS
19.1 Accounting position of the guarantee funds
Guarantee fund
Balance of
the
guarantee
funds
to 31
December
2012
Reserve funds
Reserve funds
Creation of SMEs and VSEs
Business Start-Up Loan
Transfer / buy-out of SME and VSE
Strengthening of the financial structure of SME and VSE
Over-mutualisation fund
Innovation of SMEs and VSEs
Specific short-term financing for SME and VSE
Cash Strengthening SMEs - Mid-tier companies
Cash Strengthening CCE
Supplementary Guarantee Cash Strengthening SMEs - Midtier companies
Confirmed Credit Lines SME VSE - mid-tier companies
Supplementary Guarantee Confirmed Credit Lines SME VSE mid-tier companies
FGKP
FASEP
Own funds guarantee
Participatory Priming Loan (PPA)
Sureties on innovative projects
Biotechnology guarantee
Structured financing
Strengthening Top of the Balance Sheet
PPMTR
Green Loans
Sustainable Development Innovation
Wood PPD
CICE pre-financing
Innovation loans
Entreprendre Croissance network
Digital Loan
LICC
EIB - State
Development of SMEs and VSEs
Eastern countries
PIC SME
Development capital and equity loans
Set-up of young entrepreneurs in rural settings
CDC (Caisse des Dépôts et Consignations)
France Investissement Garantie
Other funds
Own funds guarantee - IDF ERDF
Net asset value guarantee
UIMM
PPD UIMM Midi-Pyrénées
UIMM Méditérannée
Eco-Energy Loans (PEE)
EIB - Technological development
CCI Innovation PDL
Other management (*)
2013
allowanc
es
888 225
Repayments
And
redeployments
2013
2013
results
-18 900
Balance
of the
guarantee
funds
to 31
December
2013
bad debts
and interest
to be paid
Accounting
assets
of the
guarantee
funds
6 557
875 882
875 882
-90 509
-320
-28 666
-5 141
353
-3 581
2 353
-20 111
-9 327
330 171
90 284
205 889
25 660
48 088
19 092
128 092
70 823
40 673
443 071
3 421
242 618
56 187
69 732
20 045
172 585
10 276
773 242
93 705
448 507
81 847
48 088
88 824
148 137
243 408
50 949
104 810
318 680
73 244
196 185
26 081
47 735
39 533
108 139
90 934
102 000
23 398
43 270
4 720
150 000
17 600
0
50 000
-166 860
91 035
0
-74 339
4 077
20 773
84 037
36 791
0
0
3 022
39 813
13 937
53 750
101 026
0
0
867
101 893
17 146
119 039
-20
33
10 219
350
115
1
153 409
33 251
95 784
18 260
7 602
81 418
13 026
217 817
16 465
48 446
7 204
3 430
23 951
16 144
1 181
8 000
4 000
2 194
37 016
16
3 169
340
53
114 885
2 272
3 884
1 857
-20
-15 824
-715
-6 610
-2 124
50
903
1 544
-13 179
-1 120
-1 332
23
22
-1 049
144
1
942
501
43
268 294
35 523
99 668
20 117
7 602
82 505
13 026
260 043
18 035
50 999
7 267
3 430
25 204
16 144
1 181
8 000
4 000
2 194
71 182
16
4 111
841
96
169 233
25 636
87 594
15 584
6 552
80 515
11 482
214 596
17 585
49 778
7 181
2 408
8 330
14 800
4 800
1 000
-6 038
-4 900
0
0
16 400
1 000
25 000
16 000
1 200
8 000
4 000
2 161
26 817
16
2 819
225
52
1 087
42 226
1 570
2 553
63
1 253
34 166
153 112
7 800
-25 040
135 872
17 727
153 599
2 760
5 682
2 254
2 000
300
-1 237
42
23
13
7
115
14
1 823
5 724
950
1 513
1 907
19 910
6 640
1 000
108 356
1 507
13 142
3 330
5 724
950
1 513
1 907
19 954
6 640
1 000
121 498
1 372 777
4 445 781
-1 327
-500
1 900
19 795
6 626
104 955
1 000
13 000
-623
-8 976
GUARANTEE FUND
3 035 026
515 518
-273 527
-204 013
3 073 004
(*) Other management : Territory Revitalization National Fund, Hotel Renovation Fund, PCE (business start-up loan), Professional Loan
and miscellaneous
44
19.2
Earnings of the Guarantee funds on 31 December 2013
Guarantee fund
Reserve funds
Reserve funds
Business Start-Up Loan
Over-mutualisation fund
Supplementary Guarantee Cash Strengthening SMEs - Mid-tier
companies
Supplementary Guarantee Confirmed Credit Lines SME VSE mid-tier companies
FGKP
FASEP
Own funds guarantee
Structured financing
PPMTR
Green Loans
Wood PPD
CICE pre-financing
Innovation loans
Entreprendre Croissance network
Digital Loan
LICC
EIB - State
Eastern countries
PIC SME
Development capital and equity loans
Set-up of young entrepreneurs in rural settings
Other funds
Own funds guarantee - IDF ERDF
Net asset value guarantee
UIMM
PPD UIMM Midi-Pyrénées
UIMM Méditérannée
Eco-Energy Loans (PEE)
EIB - Technological development
CCI Innovation PDL
Other management
GUARANTEE FUND
Net
financial
proceeds
Participation
in capital gains
and recoveries
Commissions
Disputed
expenses and
provisions
Prelitigation
provisions
Results
6 557
6 557
5 399
638
3 129
591
353
778
985
1 840
320
235
1 889
59
95
21 180
363
12 743
1 754
-117 592
-14 282
-38 890
-3 949
269
11 072
-5 707
-3 632
-9
121
0
2 462
1 038
3 948
630
-12 590
-1 655
-43 829
-678
5 778
1 864
17 930
-9 599
-90 509
-320
-28 666
-5 141
353
-3 581
2 353
-20 111
-9 327
932
3
4 110
-14 988
14 020
4 077
396
0
121
397
2 108
3 022
889
57
0
-829
750
867
2 298
94
11 952
282
15
309
-22 182
-546
-7 764
-3 384
-10 215
-507
-1 838
725
193
175
9 962
77
851
33
-328
98
-25 394
-422
-121
-63
436
-916
-2 432
105
126
-287
-965
436
8 067
1 118
5
291
110
24
-15 824
-715
-6 610
-2 124
50
903
1 544
-13 179
-1 120
-1 332
23
22
-1 049
144
1
0
0
33
10 219
0
350
115
1
4 621
56
679
132
50
613
85
1 817
141
370
53
22
98
18
1
33
565
327
1 284
33
30
5
1
1 168
2 508
238
-24 474
-4 480
-25 040
21
42
12
13
7
155
14
9
24
-350
-941
-1 237
42
23
13
7
115
14
0
-8 976
14 960
-204 013
11
4
86
33 715
9 003
-44
599
-9 661
73 746
-335 437
| 187

NOTE 20 - NET INNOVATION INTERVENTION RESOURCES
20.1
Accounting position of the guarantee funds
Fund
Balance on
31 December
2013
Allowances
Repayments
and
redeployments
2013
2012
2013
Balance on
Bad debts
Repayable
results
31 December
and interest
advances
2013
to be paid
2013
Innovation aid - ISI
856,0
196,0
0,0
-131,2
920,8
0,0
705,5
PMII - ISI 2008
242,6
0,0
0,0
2,4
245,0
0,0
185,4
FUI (*)
86,4
109,8
0,0
-107,9
88,3
0,0
0,0
PSPC
264,1
0,0
-19,5
-23,6
221,0
0,0
12,7
43,1
63,0
0,0
-37,4
68,7
0,0
0,0
295,6
16,6
0,0
-20,3
291,9
0,0
142,4
0,0
0,0
0,0
0,0
0,0
0,0
5,9
Total
1 787,8
(*) FUI: Single Interministerial Fund
385,4
-19,5
-318,0
1 835,7
0,0
1 051,9
Strategic sectors
Aid on partners
financing
FRGI
20.2
Earnings of the Guarantee funds on 31 December 2013
Fund
Subsidies
Provisions,
losses and
recognised
failures
Appraisals
and
miscellaneous
expenses
Financial
earnings and
charges
Miscellaneous
proceeds
2013
earnings
-66,8
-69,5
-0,9
0,0
6,0
-131,2
11,6
-10,0
-0,1
0,0
0,9
2,4
-108,2
0,0
0,0
0,0
0,3
-107,9
PSPC
-23,1
0,0
-0,5
0,0
0,0
-23,6
Strategic sectors
-37,0
0,0
-0,4
0,0
0,0
-37,4
Aid on partners
financing
-14,7
-3,2
-2,4
0,0
0,0
-20,3
-238,2
-82,7
-4,3
0,0
7,2
-318,0
Innovation aid - ISI
PMII - ISI 2008
FUI
Total

NOTE 21 - CHANGE IN SHAREHOLDERS’ EQUITY
Shareholders’ funds prior to appropriation of results changed as follows:
Capital
Share premiums
Merger premium
Legal reserve
Other reserves
Regulated provisions, investment
subsidies
Retained earnings
Profit or loss for the fiscal year
Total
2012
750,9
729,1
211,8
23,6
164,6
30,5
43,8
12,8
1 967,1
Allocation
of the 2012
earnings
Other
movements
0,0
0,0
0,0
0,7
0,0
2013
0,0
0,0
0,0
0,0
0,0
750,9
729,1
211,8
24,3
164,6
13,2 (1)
0,0
12,8 (2)
2,8
-12,8
-9,3 (3)
26,0
43,7
46,6
12,8
1 983,8
(1) Exceptional amortisation allowance for software
(2) 2013 earnings
(3) Dividends of €9.3 million were distributed for the 2012 fiscal year
The share capital consists of 93,857,598 ordinary shares with a face value of 8 euros, all fully paid up.
The majority of the share capital must remain in the ownership of the French state, a state institution,
public body or public corporation.

NOTE 22 - EURO EQUIVALENT OF FOREIGN CURRENCY TRANSACTIONS
Assets
Liabilities
2013
2012
1,6
1,6
21,5
24,4
These net balance sheet positions are covered by off-balance-sheet operations.
| 189

NOTE 23 - TABLE OF DEPRECIATION FLOWS AND PROVISIONS
Depreciations
Nonrecoverable
Other
and
receivables
Recoveries
ON
depreciations
and
provisions
variations
Provisions
not hedged
on
THE
by
amortised
EARNINGS
used (1)
(2)
provisions
receivables
(3)
Depreciations
Allowances
Reversals
Reversals
and
in the
of the
of the
Provisions
depreciations
and
provisions
depreciations
and
provisions
available
to 31/12/12
to 31/12/13
IMPACT
Depreciations and provisions bad
debts and credit risk
475,9
127,6
51,5
14,9
-4,4
532,7
6,0
1,9
-80,2
- Impairment of doubtful loans
-44,2
105,7
42,5
2,5
14,9
-4,4
126,4
5,6
1,4
. Interbank loans
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
. Clientele loans
103,8
42,5
2,2
14,9
-4,4
124,8
5,6
1,4
-44,5
1,9
0,0
0,3
0,0
0,0
1,6
0,0
0,0
0,3
367,1
84,9
48,5
0,0
0,0
403,5
3,1
0,2
0,5
0,0
0,0
2,8
0,4
0,5
33,0
9,6
1,2
2,0
0,0
39,4
235,2
0,0
0,0
0,0
0,0
235,2
Provisions for non-recurring
events
2,7
0,5
0,0
0,7
0,0
2,5
- Provisions for restructuring
2,7
0,5
0,0
0,7
0,0
2,5
. Securities & other transactions
- Collective provision on credit risks
- Other provisions
Other operating provisions
Fund for general banking risks
(2) Variations in scope, exchange rate and reclassification of provisions
(3) -/+ Net allowances or write-backs
-
Non-recoverable receivables
+ Recoveries on impaired receivables
0,4
(1) Write-backs correspond to write-offs as losses
-36,4

NOTE 24 - OFF-BALANCE SHEET COMMITMENTS
Commitments given
2013
2012
3 233 244
3 246 700
1 727 654
1 785 358
185 927
237 130
260 335
307 341
332 687
411 712
229 494
432 678
291 845
0
Supplementary Guarantee Cash Strengthening SMEs - Mid-tier companies
131 137
208 610
340
5 390
Supplementary Guarantee Confirmed Credit Lines SME VSE - mid-tier
companies
FGKP
2 262
5 755
1 534 323
1 585 424
188 289
210 372
FASEP
73 409
60 646
0
5 318
Structured Financing
18 464
18 464
Own funds guarantee (excluding IDF ERDF)
40
145
72 156
69 787
0
201 891
PPMTR
0
3 982
Green Loans
0
2 212
5 205
6 317
43 407
64 194
PIC SME
748
1 420
CICE pre-financing
416
0
0
350
477 193
472 425
Other commitments
Own funds guarantee (IDF ERDF)
7 998
9 556
UIMM
1 262
1 686
Wood PPD
Eco-Energy Loan (PEE)
0
213
Other management
271 559
246 304
DROM
DROM
300 890
302 105
9 390 284
9 903 485
Doubtful guarantee commitment
1 888 034
1 675 528
11 278 318
11 579 013
Total guarantee commitments
| 191
Guarantee commitments correspond to repayment guarantees on loans distributed by other
institutions. They are primarily backing guarantee funds.
Financing commitments correspond chiefly to confirmed credit agreements issued by Bpifrance
Financement.

NOTE 25 - FOREIGN CURRENCY TRANSACTIONS AND FORWARD FINANCIAL INSTRUMENTS
2013
Hedge
Micro
Market
nominal
value
2012
Management of
positions (*)
Macro
Market
nominal
value
nominal
Market
value
TOTAL
nominal
TOTAL
Market
value
nominal
Market
value
OTC transactions performed
. Currency swap contracts
. Interest rate swap contracts
. Purchase of rate caps and floors
and floor
48,0
2 290,2
-5,0
0,0
231,5 10 930,5
0,0
-284,8
0,0
0,0
0,0
48,0
0,0 13 220,7
-5,0
53,8
-53,3 12 255,4
-5,1
-51,4
0,0
0,0
24,9
0,1
0,0
0,0
24,9
0,1
34,6
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
226,5 10 955,4
-284,7
0,0
0,0 13 293,6
-58,2 12 343,8
-56,5
Trades on official
markets
Total
2 338,2
(*) Isolated open positions.
No provisioning for credit risk was made on the forward instruments.
| 193
. Interest rate contracts sold firm
. Interest rate contracts purchased
firm
Breakdown by residual maturity on 31 December 2013
1 year < D < 5
years
D < 1 year
OTC transactions performed
D > 5 years
1 172,5
6 678,2
5 442,9
0,0
0,0
0,0
Operations carried out on
official markets
The notional amount of contracts listed above serves only as an indication of activity volume;
the counterparty risk attached to the forward financial instruments used by Bpifrance
Financement is assessed according to the methodology used to calculate European
prudential ratios as at 31 December. As such, it takes account of the impact of the offset
contracts in effect at that date and of the guarantees received. The amount is broken down as
follows:
Positive replacement cost (1)
2013
2012
346,7
503,4
Risks with central administrations
and equivalents
0,0
0,0
Risks with lending establishments
in zone A (3)
346,7
503,4
0,0
0,0
Potential credit risk (2)
115,9
106,6
Total exposure (1)+(2)
462,6
610,0
Incidence of offsetting agreements
-305,9
-413,0
Incidence of guarantees received
-105,5
-136,7
guarantees received
51,2
60,3
Equivalent weighted credit risk (4)
10,2
12,1
346,7
503,4
0,0
0,0
Customer risks
Total after impact of offsetting agreements and
(1) Corresponds with the positive net unrealised capital gains before application of the
weighting rates associated with the nature of the counterparty:
- interest rate instruments
- exchange rate instruments
(2) The potential credit risk is calculated from the nominal total multiplied by mark-up factors related to the
residual maturity of the transactions and the nature of the contracts, before allocation of weighting rates.
This estimated amount represents the potential modification to the replacement cost up to maturity.
(3) Zone A consists of : European Union member states or parties to the European Economic Area agreement, other
Organisation for Economic Cooperation and Development (OECD) member countries, countries with special lending agreements with the
International Monetary Fund (IMF) within the IMF’s general framework of lending agreements.
(4) The exposure after the effect of the offsetting agreements and guarantees received is weighted according to the nature of the
counterparty.

NOTE 26 - INTEREST INCOME
Customer loans (*)
2013
2012
28,5
50,2
469,5
430,9
- Overdrafts
0,1
0,0
29,5
22,6
- Medium and long-term loans
239,4
223,2
- Sundry loans and subordinated debt
113,6
102,6
86,9
82,5
- Short-term credit facilities
- Off-balance sheet operations
Financial instruments for hedging purposes
Total
230,6
231,4
0,6
1,0
729,2
713,5
0,9
1,3
2013
2012
(*) Of which recovery of depreciation for doubtful loans as a result
of the passing of time (cf. note 1.2)

NOTE 27 - INTEREST AND SIMILAR EXPENSES
Customer loans
- Bonds
- Subordinated securities
- Result of micro-hedging
Other interest and similar charges
-180,8
-210,9
-81,8
-72,1
-137,3
-71,1
-135,0
-2,3
0,0
0,0
-65,7
-5,0
-0,3
-0,1
-0,1
-0,4
Macro-hedging financial instruments
-107,6
-124,6
Total
-507,6
-479,1

NOTE 28 - PROCEEDS FROM FINANCE LEASE AND OPERATING LEASE OPERATIONS
Rents
2013
2012
945,6
895,6
Other proceeds
87,2
88,1
Capital gains
23,5
20,3
-12,1
-12,4
1 044,2
991,6
Cost of risk
Total
| 195

NOTE 29 - EXPENSES ON FINANCE LEASE AND OPERATING LEASE OPERATIONS
Depreciation charge
2013
2012
-714,6
-708,9
Allocation to special provisions
-90,0
-78,4
Capital losses
-38,3
-51,5
Other expenses
-83,5
-84,1
-926,4
-922,9
Total

NOTE 30 - INCOME FROM VARIABLE INCOME SECURITIES
2013
2012
Equity interests
0,1
0,2
Other long-term investment securities
0,1
0,1
Investments in affiliates
1,3
1,4
Total
1,5
1,7

NOTE 31 - COMMISSIONS
2013
2012
Proceeds
OSEO Industrie business introducer commissions
10,5
15,6
8,2
13,3
1,0
19,7
0,9
29,8
-0,6
-0,6
-0,5
-0,5
Commissions on operations with the clientele
Commissions on the delivery of financial services
Total
Expenses
Expenses on securities operations
Total

NOTE 32 - GAINS OR LOSSES ON TRADING PORTFOLIO TRANSACTIONS
2013
2012
Trading securities
0,0
0,0
Exchange transactions
0,0
0,0
0,0
0,0
Total
0,0
0,0

NOTE 33 - GAINS OR LOSSES ON LONG-TERM PORTFOLIO AND SIMILAR TRANSACTIONS
2013
2012
Net allocations to or write-backs from depreciations
0,2
0,0
0,0
0,0
0,1
0,0
Total
0,3
0,0

NOTE 34 - OTHER BANK OPERATING INCOME
2013
2012
Income charged to Group companies
5,2
4,3
Other expenses charged back
1,2
1,3
Usage of partner resources for the financing
of innovation aid
17,3
35,1
Innovation operation allocation
33,0
37,8
Commissions on recoveries and insurance products
6,3
5,1
Recovery of available provisions
0,7
5,3
Share of investment subsidies
1,9
1,8
Innovation activity regularisation products
10,8
2,0
Management fees on partner agreements
2,8
4,4
Restaurant modernization fund subsidy
0,0
2,7
Management proceeds on DROM managed funds
2,1
8,0
Other proceeds
8,9
9,2
90,3
117,0
Total
| 197

NOTE 35 - OTHER EXPENSES ON BANKING OPERATIONS
2013
Amortisation & depreciation allowances on non-operating
tangible
and intangible fixed assets
Allocations to provisions for liability litigations and
bank operation
Investment income paid back to mutual guarantee
funds
Repayment of proceeds of subsidies from the Regional
Department of Industry, Research and the Environment
Subsidies paid on partner resources
Losses and recognised failures on parther resources
Innovation activity regularisation expenses
Other expenses on banking operations
Total
 NOTE 36 - OPERATING GENERAL EXPENSES
Personnel costs
- Salaries and wages
- Defined contribution retirement expenses
- Defined benefit retirement expenses
- Other social charges
- Profit-sharing
- Fiscal expenses
- Allowances / write-backs for
commitments relative to the personnel
0,0
0,0
-3,3
-6,7
-0,1
-0,4
-0,8
-13,5
-3,2
0,0
-2,7
-1,0
-28,6
-6,0
-0,5
-2,4
-23,6
-45,6
2013
Subtotal
Duties and taxes (*)
Other administrative costs
Total
(*) of which Systemic risk tax and Contribution for audit expenses by the
Prudential Control and Resolution Authority (ACPR)
36.1
2012
2012
-97,7
-10,8
-1,8
-36,1
-7,7
-9,6
-96,1
-10,6
-2,2
-36,7
-6,5
-9,0
-1,7
-2,7
-165,4
-163,8
-24,1
-88,9
-22,0
-87,4
-278,4
-273,2
-11,3
-10,5
Breakdown of the fair value of the assets
The breakdown of the fair value of the plan’s assets between different categories is based on the
nature of the assets and on the attached risks.
2013
2012
Amount
as %
Amount
as %
UCITS
Monetary
2,3
11%
3,1
15%
Equity
2,5
11%
2,9
14%
Bond
17,1
78%
15,3
72%
Total
21,9
100%
21,3
100%
36.2
Variation of the obligations pursuant to post-employment benefits
Health
expenses
Obligations
relative
to defined
benefits
Liabilities
/
(assets)
net
Obligations
relative
to defined
benefits
Plan
assets
Opening balance
- Effects of variations of foreign currency prices
- Contribution to the employer's plan
- Contribution to the participant's plan
- Paid services
> of which actuarial gains and losses on adjustments related to demographic hypotheses
> of which actuarial gains and losses on adjustments of the financial hypotheses
22,6
0,9
0,6
0,0
0,0
0,0
0,0
0,0
-1,9
1,4
0,2
1,2
20,7
0,0
0,0
0,0
0,0
1,9
0,0
0,0
-1,9
1,2
0,0
1,2
1,9
0,9
0,6
0,0
0,0
-1,9
0,0
0,0
0,0
0,2
0,2
0,0
2,4
0,0
0,1
0,0
0,0
0,0
0,0
0,0
-0,2
0,0
0,0
0,0
Closing balance
23,6
21,9
1,7
2,3
Longservice
awards
Obligations
relative
to other
long-term
benefits
1,5
0,1
0,0
-0,5
0,0
0,0
0,0
0,0
-0,3
0,0
0,0
0,0
20,6
0,8
0,7
0,0
0,0
0,0
0,0
0,0
-2,1
2,6
2,0
0,6
18,2
0,0
0,0
0,0
0,0
2,4
0,0
0,0
-2,1
2,2
0,0
2,2
2,4
0,8
0,7
0,0
0,0
-2,4
0,0
0,0
0,0
0,4
2,0
-1,6
2,4
0,0
0,1
0,0
0,0
0,0
0,0
0,0
-0,2
0,1
0,1
0,0
Closing balance
22,6
20,7
1,9
2,4
1,5
Health
expenses
Obligations
relative
to defined
benefits
Liabilities
/
(assets)
net
Obligations
relative
to defined
benefits
Plan
assets
Bonds
Plan
assets
Liabilities /
(assets)
net
26,5
1,0
0,7
-0,5
0,0
0,0
0,0
0,0
-2,4
1,4
0,2
1,2
20,7
0,0
0,0
0,0
0,0
1,9
0,0
0,0
-1,9
1,2
0,0
1,2
5,8
1,0
0,7
-0,5
0,0
-1,9
0,0
0,0
-0,5
0,2
0,2
0,0
26,7
21,9
4,8
TOTAL
2012
Bonds
Plan
assets
Liabilities /
(assets)
net
24,9
0,9
0,9
0,0
0,0
0,0
0,0
0,0
-2,7
2,5
2,1
0,4
18,2
0,0
0,0
0,0
0,0
2,4
0,0
0,0
-2,1
2,2
0,0
2,2
6,7
0,9
0,9
0,0
0,0
-2,4
0,0
0,0
-0,6
0,3
2,1
-1,8
26,5
20,7
5,8
| 199
Opening balance
- Effects of variations of foreign currency prices
- Contribution to the employer's plan
- Contribution to the participant's plan
- Paid services
> of which actuarial gains and losses on adjustments related to demographic hypotheses
> of which actuarial gains and losses on adjustments of the financial hypotheses
0,8
Longservice
awards
Obligations
relative
to other
long-term
benefits
1,9
0,1
0,1
0,0
0,0
0,0
0,0
0,0
-0,4
-0,2
0,0
-0,2
TOTAL
2013

NOTE 37 - COST OF RISK
2013
Subtractive
assets
Recoveries on loans and receivables previously
written-off
Balance
Collective
provision
Other
liabilities
TOTAL
-40,0
-36,4
0,3
-76,1
-5,6
0,0
-0,4
-6,0
1,4
0,0
0,5
1,9
-44,2
-36,4
0,4
-80,2
Other
liabilities
TOTAL
2012
Subtractive
assets
Recoveries on loans and receivables previously
written-off
Balance

Collective
provision
-22,6
-31,5
-0,1
-54,2
-5,8
0,0
-0,4
-6,2
1,8
0,0
0,1
1,9
-26,6
-31,5
-0,4
-58,5
NOTE 38 - GAINS OR LOSSES ON NON-CURRENT ASSETS
Investment
securities
Operating
intangible
and
tangible
fixed assets
Allowances to
depreciations
Write-back of
depreciations
2013
Equity interests and
other securities
held for the
long term
Investments in
subsidiaries and
affiliates
2012
TOTAL TOTAL
0,0
0,0
-2,8
-2,8
-0,7
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
3,0
3,0
1,3
Balance
0,0
0,0
0,2
0,2
0,6

NOTE 39 - RECONCILIATION OF CORPORATE RESULT AND FINANCIAL RESULT
2013
Finance lease
and rental
immovables
Allocations to accounting depreciation & amortisation
Finance lease
and rental
TOTAL
movables
-272,9
-441,7
-714,6
-5,0
-9,8
-14,8
Total
-277,9
-451,5
-729,4
Allocations to financial depreciation & amortisation
-268,4
-411,4
-679,8
-5,0
0,7
-4,3
0,5
-3,0
-2,5
-272,9
-413,7
-686,6
5,0
37,8
42,8
Accounting capital gains or losses
Financial capital gains or losses
Financial depreciation on asset items
Total
Variation in latent reserve

NOTE 40 - MAIN INTERIM FINANCIAL MANAGEMENT BALANCES
NET BANKING INCOME
31/12/2013
31/12/2012
471,5
506,1
-278,4
-273,2
-18,6
-16,4
174,5
216,5
Cost of risk
-81,9
-68,3
92,6
148,2
0,2
0,6
92,8
148,8
0,0
0,0
-24,0
-38,9
-13,2
-6,3
55,6
103,6
Amortisation & depreciation allowances on tangible &
intangible
fixed assets
OPERATING INCOME
Gains or losses on non-current assets
CURRENT PRE-TAX EARNINGS
Extraordinary profit or loss
Income tax
Charges to/recoveries from the FGBR and regulatory
provisions
Net earnings
| 201
NOTE 41 - TAX SITUATION

Company tax is booked on the tax payable method.
The taxable income of the company for 2013 (provisional) at the basic rate is a profit in the area of €32.5 million,
taking into account the main net add-backs or deductions as follows:
Pre-tax book income for the year
36,8
Net allowance of collective provision
36,4
Provision for headcount reduction schemes
-2,9
Income from penalties net of early repayment,
loan restructuring and staggering of the cash balances
-1,7
-3,4
Loan advances on participatory development loans (PPD)
8,0
Depreciations of doubtful loans and other provisions
-27,5
Amortisation of the lease
-13,2
Taxable income
32,5
At the basic rate of tax, i.e. 38%, these earnings for tax purposes give rise to a tax charge of €11.5 million.
At the reduced tax rates, the taxable result for 2013 does not generate any tax charge.
Moreover, Bpifrance Financement was the subject of a tax audit in 2013. The effects of the tax audit were
recorded in the profit and loss statement to 31/12/2013.
NOTE 42 - SECTOR-SPECIFIC INFORMATION

Bpifrance Financement operates primarily in the following business lines:




co-financing; this involves direct medium and long-term financing in the form of loans, leasing operations on plant
& equipment and property, and financial leases,
short-term financing which includes the operations to participate in the financing of public sector receivables in
France and its overseas departments and territories, either directly or by signature,
the guarantee actions cover banks and equity investment institutions from risks of the failure of the beneficiaries
of the financing,
innovation financing aid in the form of repayable advances or subsidies,
By agreement, the “other” heading includes the proceeds from the investment of the own funds, re-invoicing and, to a
lesser degree, income from equity interests.
2013
Activity
Financial
NBI
Average
outstandings
2012
Financial
NBI
Average
outstandings
Co-financing
269,8
16 254,4
290,0
13 754,4
153,6
5 065,8
157,6
4 572,1
63,4
81,5
1 328,3
11 196,0
47,8
101,9
810,6
11 181,0
- dont crédit-bail
Short-term financing
Guarantee
- dont commissions
72,6
- dont produits financiers
Innovation
Other

69,2
5,5
23,3
48,7
8,1
47,3
19,2
NOTE 43 - ACTIVITIES ON BEHALF OF THIRD PARTIES
2013
Assets
Liabilities
Receivables Cash Total Debts
Off-balance sheet
Suspense
accounts
Total
Guarantee activity
DROM managed funds
0,0
63,5
63,5
0,0
63,5
63,5
242,9
Camulor
0,0
0,2
0,2
0,0
0,2
0,2
0,2
FGRU (*)
0,0
12,2
12,2
0,0
12,2
12,2
11,4
Student loans
0,0
16,7
16,7
0,0
16,7
16,7
190,4
Atout
22,2
42,4
64,6
0,0
64,6
64,6
0,0
Total
22,2 135,0 157,2
0,0
157,2 157,2
444,9
Innovation aid activity
(*) FGRU : Guarantee Fund for Urban Renewal

NOTE 44 - PERSONNEL
The average paid staff, including seconded personnel, consisted of 1,677 full-time equivalent employees in 2013, of
which 82% are executives.
The balance of vested rights in respect of individual training entitlement (Droit Individuel à la Formation) stood at
26,694 days at end of December 2013.

NOTE 45 - COMPENSATION PAID TO MEMBERS OF EXECUTIVE AND SUPERVISORY BOARDS
The compensation paid to the corporate officers during the fiscal year was equal to €843,000.
Directors do not receive any attendance fees.
| 203
10.1. Report on the consolidated financial statements
KPMG Audit
Le Belvédère
1 Cours Valmy
CS 50034
92923 Paris La Défense Cedex
France
Mazars
Tour Exaltis
61 rue Henri-Régnault
92400 Courbevoie
France
Bpifrance Financement S.A.
Statutory auditors’ report on the consolidated financial statements
27-31, avenue du Général-Leclerc - 94710 Maisons-Alfort
This report contains 93 pages
Reference: PSP - 142 075 RCC
Registered office: 27-31, avenue du Général-Leclerc - 94710 Maisons-Alfort
Issued capital: € 750,860,784
Fiscal year ending on 31 December 2013
Ladies, Gentlemen, Shareholders,
As part of our assignment for your General meeting, we present to you our report for the fiscal year ending on 31
December 2013, on:

the verification of the Bpifrance Financement S.A. group consolidated financial statements, as attached to the
present report;

the bases of our assessments;

the verifications and specific information required by law.
The consolidated financial statements have been prepared by the Board of directors. Our responsibility is to
express an opinion on these financial statements based on our audit.
1. Opinion regarding the consolidated financial statements
We have conducted our audit in accordance with the professional standards applicable in France; these standards
require that we apply the procedures necessary to obtain reasonable assurance that the consolidated financial
statements do not include any significant misstatements. An audit involves verifying, by sampling and other
selection methods, the elements underlying the amounts and information contained in the consolidated financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the financial statements. We believe that our audit
provides a reasonable basis for our opinion.
We certify that, in accordance with the IFRS reference base adopted by the European Union, the consolidated
financial statements are truthful and in order, and present a fair picture of the asset base, financial situation and
results of the structure consisting of the persons and entities included in the consolidation.
Without calling into question the opinion expressed above, we draw your attention to note 2 of the appendix to the
consolidated financial statements, entitled “Applicable accounting standards”, that presents the method changes
resulting from the application of the new standards and interpretations applied as of 1 January 2013.
| 205
2. Justification of the assessments
In accordance with the provisions of Article L.823-9 of the [French] Commercial code, concerning the justification
of our assessments, we draw your attention to the following items.
Accounting rules and principles

Financial assets and liabilities, and guarantee and innovation activities:
Notes 5.1 to 5.8 of the appendix to the consolidated financial statements present the accounting methods relative
to financial assets and liabilities, and notes 5.24 and 5.25 present the accounting methods relative to the
guarantee and innovation activities.
As part of our assessment of the accounting rules and principles used by your group, we have notably verified the
appropriate nature of the above-mentioned accounting methods and of the information provided in the notes to the
appendix, as well as their correct application.
Accounting estimates

Depreciation of the credit risk:
Your group establishes depreciations intended to cover the credit risk inherent to its activities, as described in
note 5.2.1 “Loans and receivables” of the appendix to the consolidated financial statements. As part of our
assessment of the significant estimates used for the closing of the financial statements, we have examined the
control system relative to the follow-up of the credit risk, the assessment of the non-recovery risk and its hedging,
on the asset side, by means of individual and collective provisions.

Valuation of financial instruments:
Your group owns positions in financial instruments. Note 5.1 “Determination of the fair value of financial
instruments” of the appendix to the consolidated financial statements lists the assessment methods relative to
financial instruments. We have examined the control system relative to the determination of the parameters used
for the valuation of these positions, and have verified the appropriate nature of the information provided in the
appendix notes.

Provisioning of social commitments:
Your group establishes provisions in order to cover its social commitments. We have examined the assessment
methodology for these commitments as well as the employed hypotheses and parameters, and we have verified
the appropriate nature of the information provided in notes 5.14 and 9.3 of the appendix to the consolidated
financial statements.
The resulting assessments are part of our task of auditing the consolidated financial statements, in their broad
interpretation, and they therefore contributed to the formation of our opinion as expressed in the first part of this
report.
PSP – 142 075 RCC – Fiscal year ending on 31 December 2013
3. Specific verification
In compliance with the professional standards applicable in France, we have also carried out the specific
verification required by law with regard to the information provided in the report on the group management.
We have no adverse comments to make about their truthfulness and agreement with the consolidated accounts.
Paris la Défense, 17 April 2014
Courbevoie, 17 April 2014
KMPG Audit
Department of KPMG S.A.
Mazars
Philippe Saint-Pierre
Associate
Virginie Chauvin
Associate
| 207
10.2. Report on the individual financial statements
KPMG Audit
Le Belvédère
1 Cours Valmy
CS 50034
92923 Paris La Défense Cedex
France
Mazars
Tour Exaltis
61 rue Henri-Régnault
92400 Courbevoie
France
Statutory auditors’ report on the annual financial statements
27-31, avenue du Général-Leclerc - 94710 Maisons-Alfort
This report contains 59 pages
Reference: PSP - 142 074 RCC
Registered office: 27-31, avenue du Général-Leclerc - 94710 Maisons-Alfort
Issued capital: € 750,860,784
Fiscal year ending on 31 December 2013
Ladies, Gentlemen, Shareholders,
As part of our assignment for your General meeting, we present to you our report for the fiscal year ending on 31
December 2013, on:

the verification of the Bpifrance Financement S.A. group consolidated financial statements, as attached to the
present report;

the bases of our assessments;

the verifications and specific information required by law.
The consolidated financial statements have been prepared by the Board of directors. Our responsibility is to
express an opinion on these financial statements based on our audit.
1. Opinion regarding the consolidated financial statements
We have conducted our audit in accordance with the professional standards applicable in France; these standards
require that we apply the procedures necessary to obtain reasonable assurance that the consolidated financial
statements do not include any significant misstatements. An audit involves verifying, by sampling and other
selection methods, the elements underlying the amounts and information contained in the consolidated financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the financial statements. We believe that our audit
provides a reasonable basis for our opinion.
We certify that, in accordance with French accounting rules and principles, the consolidated financial statements
for the fiscal year are truthful and in order, and present a fair picture of the operating profits and losses for the past
fiscal year, as well as the company’s financial situation and assets at the end of said fiscal year.
| 209
2. Justification of the assessments
In accordance with the provisions of article L.823-9 of the [French] Commercial code, concerning the justification
of our assessments, we draw your attention to the following items.
Accounting rules and principles

Guarantee funds and net innovation intervention resources:
The paragraph of note 1.2 of the notes to the annual financial statements entitled “Guarantee funds and net
innovation intervention resources” presents the application rules relative to the innovation aid and guarantee funds
managed by your company. As part of our assessment of the accounting rules and principles used by your
company, we have notably verified the appropriate nature of the above-mentioned accounting methods and of the
information provided in the notes to the appendix, as well as their correct application.
Accounting estimates

Provisioning of the credit risk:
Your company establishes depreciations and provisions intended to cover the credit risk inherent to its activities,
as described in note 1.2 of the appendix to the consolidated financial statements, entitled “Credit risk”. As part of
our assessment of the significant estimates used for the closing of the financial statements, we examined the
control system relative to the follow-up of the credit risk, the assessment of the non-recovery risk and its hedging,
on the asset side, by means of the depreciations set up on an individual and collective basis, and, on the liabilities
side, by provisions intended to hedge unallocated counterparty risk.

Securities and financial instruments
Your company owns securities and financial instruments. The paragraphs of note 1.2 of the appendix to the
annual financial statements entitled “Operations involving financial instruments” and “Equity interests and shares
in related companies, other long-term investment securities” indicate the assessment methods relative to the
securities and financial instruments that are held. We have examined the control system relative to the
determination of the parameters used for their valuation, and have verified the appropriate nature of the
information provided in the appendix notes.

Provisioning of social commitments
Your company establishes provisions in order to cover its social commitments. We have examined the
assessment methodology for these commitments as well as the employed hypotheses and parameters, and we
have verified the appropriate nature of the information provided in note 1.2 of the appendix to the annual financial
statements, entitled “Pensions and other social commitments”.
These assessments were made as part of our audit of the annual financial statements taken as a whole and
therefore contributed to the formation of our audit opinion expressed in the first part of this report.
3. Specific verification
In compliance with the professional standards applicable in France, we have also carried out the specific
verification required by law with regard to the information provided in the report on the group management.
We have no negative observations to report regarding the truthfulness or consistency with the annual financial
statements of the information included in the Board of Directors management report and in the documents sent to
the Shareholders concerning the company’s situation and annual financial statements.
Regarding the information provided in application of the provisions of article L. 225-102-1 of the [French]
Commercial code on the compensation and benefits paid to corporate officers as well as on the commitments
made in their favour, we have verified their agreement with the financial statements or with the data used to
prepare these financial statements and, if relevant, with the elements gathered by your company from the
companies that control your company or are controlled by it. On the basis of these works, we certify the accuracy
and truthfulness of this information.
Paris La Défense, 17 May 2014
Courbevoie, 17 April 2014
KMPG Audit
Mazars
Philippe Saint-Pierre
Associate
Virginie Chauvin
Associate
| 211
10.3. Report on the regulated agreements
Bpifrance Financement SA
Public limited company with capital of €750,860,784
Registered office: 27-31 avenue du Général-Leclerc, 94710 Maisons-Alfort
TCR: 320 252 489
Statutory auditors’ special report on regulated agreements and
commitments
General meeting for the approval of the financial statements for the financial year ending on 31
December 2013
KPMG
MAZARS
Bpifrance
Financement SA
Statutory auditors’ special report on regulated agreements and commitments
General meeting for
the approval of the
financial statements
for the financial year
ending on 31
December 2013
In our capacity as statutory auditors for your company, we present to you our report on
regulated agreements and commitments.
It is our responsibility to provide you, on the basis of the information provided to us, with the
characteristics and essential provisions of the agreements and commitments of which we have
been informed or that we may have discovered during our mission, without having to express an
opinion as to their usefulness or merit, or to seek out the existence of other agreements and
commitments. It is up to you, according to the terms of article R.225-31 of the [French]
Commercial code, to assess the importance of signing these agreements and commitments with
a view to approving them.
It is also our responsibility, where applicable, to further provide you with the information
indicated in article R.225-31 of the [French] Commercial code relative to the execution, during
the elapsed fiscal year, of agreements and commitments already approved by the general
meeting.
We have implemented the due diligence reviews that we considered necessary in view of the
professional doctrine of the Compagnie nationale des commissaires aux comptes relative to this
mission. These due diligence reviews require a verification that the information provided to us is
in accordance with the underlying documents from which it is produced.
AGREEMENTS AND COMMITMENTS SUBMITTED FOR THE APPROVAL OF THE
GENERAL MEETING
Pursuant to article L.225-40 of the [French] Commercial code, we have been advised of the
following agreements in commitments that had previously been approved by your Board of
Directors.
1) Assignment contract with Bpifrance Investissement (former CDC Entreprises)
Persons involved: Nicolas Dufourcq, as Chairman of the board of directors of Bpifrance
Financement and Bpifrance Investissement and, General Manager of the SA BPI-Groupe.
| 213
On 29 November 2013, your board of directors authorised the signing of this agreement that
defines the conditions and provisions for the assignment of securities held by Bpifrance
Financement in Bpifrance Investissement Régions (former FSI Regions) for the benefit of
Bpifrance Investissement.
Pursuant to this agreement, your company undertakes to assign 167,034 shares of the
Bpifrance Investissement Régions company to the Bpifrance Investissement company, which
undertakes to pay an assignment price to your company in the amount of €1,588,438.05. As
such, Bpifrance Investissement will hold 100% of the shares of the Bpifrance Investissement
Régions company.
This agreement was signed on 11 February 2014 and had no financial effect during fiscal 2013.
AGREEMENTS AND COMMITMENTS ALREADY APPROVED BY THE GENERAL MEETING
a) the execution of which continued during the elapsed fiscal year
In application of article R. 225-30 of the Commercial code, we have been informed that the
execution of the following agreements and commitments, already approved by the general
meeting during previous fiscal years, continued during the elapsed fiscal year.
1) Agreements signed with OSEO Industrie

Business referral agreement
On 30 March 2012, your board of directors authorised the signing of this agreement pursuant to
which your company can provide its subsidiary with loan files for companies in the industrial
sector, identified by your network.
This agreement determines the compensation for the contribution of files made by your
company, namely a contribution commission equal to 1% of the loan outstandings set up by the
Bpifrance Financement network. This agreement is payable within three months after the closing
of the OSEO Industrie corporate financial statements.
This agreement was signed on 26 April 2012 for a period of one year as of its signing, and is
subject to automatic renewal.
In application of this agreement, proceeds of €10,529,243 were booked by your company
relative to the fiscal year ending on 31 December 2013.

Guarantee agreement
On 30 March 2012, your board of directors authorised the signing of this agreement that is
intended to define the legal and financial provisions for the guarantee granted to your company
by OSEO Industrie, as well as the compensation provisions, namely:
- upon delivery of the loan offer to the customer and the signing of the loan contract, a clause
must indicate that OSEO Industrie will be replaced by Bpifrance Financement, meaning that
Bpifrance Financement will take the place of OSEO Industrie for the complete fulfilment of
the financing in the name of OSEO Industrie;
- in case of customer default, your company initiates the legal procedures at its expense, while
informing OSEO Industrie of its actions;
- OSEO Industrie provides its guarantee and reimburses all of the sums owed up to the
amount of the final loss incurred by your company as a result of defaulting customers;
- relative to the received guarantee, your company pays annual compensation of 0.9% to
OSEO Industrie, calculated from:
o the month end outstandings, sound and doubtful, of the amounts disbursed for the MLT
sector,
o the amounts used for the FCT sector,
o the amounts of the commitments given relative to surety operations.
subject to automatic renewal each year. This guarantee commission is invoiced before the end
of the first quarter of the following year.
In application of this agreement, a charge of €11,570,123 was booked by your company relative
to the fiscal year ending on 31 December 2013.

Service providing agreement
On 30 March 2012, your board of directors authorised the signing of this agreement that sets out
the nature of the services provided by your company to its subsidiary, notably:
- the management of disputes and litigation,
- the legal secretarial services, and the monitoring of legal and fiscal regulations,
- bookkeeping for the establishment’s tax forms,
- assistance with the preparation of projected budgets, the set-up of financial relations and
cash management,
| 215
-
the supply of IT tools relative to data protection and management of the IT network.
Each year, your company is invoiced for the pre-tax amount of €850,000.
The agreement also describes the nature of the services as part of setting up a file. Your
company is asked to perform a financial analysis on the basis of which the subsidiary can
decide whether or not to issue an offer to the customer.
The compensation relative to the examination of the offers is equal to 50% of the daily cost price
of a business manager, i.e. €260 per initiated file. The services are invoiced once each year.
The compensation includes the incurred travel expenses, and excludes all fees and intervention
expenses for external service providers; these additional services will be invoiced to OSEO
Industrie to the closest euro.
subject to automatic renewal for a duration of one year.
In application of this agreement, proceeds of €1,393,206.39 were booked by your company

Refinancing and current account agreements
On 29 June 2012, your board of directors authorised the signing of this agreement relative to the
financing, by your company, of the OSEO Industrie credit operations, namely:
- Your company opened a current account in the name of OSEO Industrie, in which the cash
advances are capped in the amount of €200 million.
- These cash advances are primarily made available for the purposes of refinancing the loan
operations activity: a report describing the disbursed amounts and the financial
characteristics must be presented when the subsidiary requests the advance.
The interest on the advances is calculated each day by your company, namely:
- when the current account shows a debit balance, the interest proceeds are calculated on the
basis of the account balance, at the eonia rate plus 0.125%.
- when the current account shows a credit balance, the interest proceeds are calculated on the
basis of the account balance, at the eonia rate less 0.125%.
This agreement was signed on 2 July 2012 for a period of one year as of its signing, and is
subject to automatic renewal each year.
In application of this agreement, proceeds of €2,726.93, net of expenses, were booked by your
company relative to the fiscal year ending on 31 December 2013.
2) Agreements and amendment signed with Bpifrance Investissement Régions (former
FSI Regions)

Agreement relative to the set-up of Bpifrance Investissement Régions within the
Network
On 29 June 2012, your board of directors authorised the signing of this agreement that is
intended to define the physical and material organisation of 14 sites for the location of Bpifrance
Investissement Régions employees in the regional premises of Bpifrance Financement, notably:
- signage specific to Bpifrance Investissement Régions is installed within the regional
premises where the employees of Bpifrance Investissement Région will be working.
- your company authorises the installation of the Bpifrance Investissement Régions IT
networks in its regional premises.
Pursuant to this collaboration, your company receives an annual pre-tax contribution of
€20,000 per installation, payable on 15 December of each year, at the latest.
This agreement was signed on 12 July 2012 and proceeds of €280,000 were booked with
regard to the fiscal year ending on 31 December 2013.

Agreements relative to the procedure for requesting a proposal of files as part of the
Régions Mezzanine FCRP and of the FSI Régions 1 FCRP
On 29 June 2012, your board of directors authorised the signing of two agreements intended to
clarify the procedure whereby Bpifrance Investissement Régions can ask your company to
propose files within the framework of the investments undertaken by the FSI Régions
Mezzanine FCPR (venture capital mutual fund) and by the FSI Régions 1 FCPR (venture capital
mutual fund), namely:
-
the files are provided to the regional managers of Bpifrance Investissement Régions, and
Bpifrance Investissement Régions provides the accounting follow-up,
the annual objectives are set by the Bpifrance Investissement Régions management in
agreement with the directors of the Bpifrance Financement network.
Your company receives a study and marketing commission, calculated as follows:
-
any file presented exclusively by your company to the FCPR’s advisory committee is invoiced
at €6,000, net of tax,
for the disbursed files, compensation of 1% of the amount of the granted outstandings is paid
to your company.
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The total compensation cannot be more than €20,000, before tax, per file.
These agreements, signed on 12 July 2012, are applicable for the duration of the investment
period of both FCPRs.
Pursuant to the agreement with the Régions Mezzanine FCPR, your company booked proceeds
of €94,995.00 relative to the fiscal year ending on 31 December 2012.
Pursuant to the agreement with the FSI Régions FCPR, your company booked proceeds of
€158,923.64 relative to the fiscal year ending on 31 December 2012.

Agreement on the contribution and study of OC+ files between Bpifrance
Financement and Bpifrance Investissement Régions
This agreement determines the framework for the business getter relations between Bpifrance
Investissement Région and your company. In consideration of the OC+ files coming from the
target companies brought in by the Bpifrance Financement networks, Bpifrance Investissement
Régions pays an inclusive commission to your company of €6,000 net of tax per presented file,
plus a commission supplement of 1% of the invested amounts.
This agreement, authorised by the supervisory board meeting on 14 December 2009 and signed
on 16 December 2009, was the subject of an amendment authorised by your board of directors
on 29 June 2012.
This amendment results in modifications of the compensation for the files presented by your
company as part of the investments of the OC+B FCPR, namely:
any file presented exclusively by your company to the FCPR’s advisory committee is invoiced
at €6,000, net of tax,
- for the disbursed files, compensation of 1% of the amount of the granted outstandings is paid
to your company.
The total compensation cannot be more than €20,000, before tax, per file.
-
Pursuant to this amendment signed on 12 July 2012, your company booked proceeds of
€195,499.06 relative to the fiscal year ending on 31 December 2012.

Cooperation agreements signed with Bpifrance Investissement Régions (former FSI
Regions)
-
Agreement relative to the Avenir Entreprises Développement FCPR
As part of the creation of the Développement Venture Capital Mutual Fund (FCPR), on 11 March
2008, your supervisory board authorised a cooperation agreement between Bpifrance
Financement and Bpifrance Investissement Régions, which defines the cooperation provisions.
Pursuant to this agreement, your company booked proceeds of €20,000 relative to the fiscal
-
Agreement relative to the Avenir Entreprises Mezzanine FCPR
As part of the creation of the Avenir Entreprises Mezzanine Venture Capital Mutual Fund
(FCPR), on 21 December 2007, your supervisory board authorised a cooperation agreement
between Bpifrance Financement and Bpifrance Investissement, which defines the cooperation
provisions.
Pursuant to this agreement, your company booked proceeds of €54,098.11 relative to the fiscal
3) Intra-group services agreement signed with the EPIC BPI-Groupe Bpifrance Région
(former OSEO Régions), Auxifinances and SCI d’OSEO.
Authorised by your supervisory board on 11 March 2008, this agreement is intended to define a
framework for the exchanged services and to determine the general principles for all of the reinvoicing between the various parties.
An amendment to this agreement was signed with Bpifrance Régions, which determines the
nature of the various services provided by your company to its subsidiary, and the conditions for
their compensation, namely:
-
€300,000 net of tax for services related to the accounting and financial management, the
monitoring of the guarantee funds, and the legal monitoring for Bpifrance Régions;
0.45% of the amounts charged to the guarantee funds during the previous year relative to the
services related to the marketing and granting of guarantees provided by Bpifrance Régions;
0.2% net of tax of the amounts charged to the guarantee funds during the previous year relative
to the operation management services.
For the fiscal year ending on 31 December 2013, your company booked proceeds of
€139,873.42 with regard to the re-invoicing to EPIC BPI-Groupe of wage costs, and proceeds of
€1,483,650 with regard to the re-invoicing to Bpifrance Régions of services of a commercial
nature and relative to wage costs.
4) Service providing agreement for the Innovation Guarantee Regional Funds (FRGI)
signed with Bpifrance Régions (former OSEO Régions).
Authorised by your board of directors on 16 December 2011, this agreement is intended to
define the operation of the FRGI system and the nature of the services between Bpifrance
Financement and Bpifrance Régions. As part of this system, the local authorities provide
Bpifrance Régions with funds in order to set up the FRGIs, the purpose of which is to hedge the
risks and liquidity costs resulting from the assistance granted by your company’s network.
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This agreement sets the compensation for the services at 4.80% net of tax of the amount of the
funds paid out as part of the innovation aid amounts that are eligible for the FRGIs.
Pursuant to this agreement, your company booked proceeds of €921,983.80 relative to the fiscal
5) Guarantee agreement signed with the EPIC BPI-Groupe relative to the issues as part of
the Bpifrance Financement EMTN programme.
Authorised by your board of directors on 16 December 2011, this agreement calls for the EPIC
BPI-Groupe to grant a guarantee for the benefit of the investors who have subscribed for the
EMTN issued by your company.
The compensation for this guarantee is equal to 0.15% of the outstandings of the security issues
as part of the EMTN programme.
In application of this agreement, a charge of €7,902,143.72 was booked by your company
6) Current account and cash pooling agreement between EPIC BPI-Groupe and Bpifrance
Financement.
Authorised by your Supervisory Board meeting on 29 June 2007, this agreement defines the
operation and the compensation provisions for the current account opened in your company’s
name within the framework of the centralised cash pooling.
In application of this agreement, an interest charge of €5,672.50 was booked by your company
7) Management mandate signed between Bpifrance Financement and Auxifinances
Through this agreement, authorised during the board of directors meeting on 25 March 1998,
your company provides the overall management of its subsidiary Auxifinances, owner of the
Bpifrance Financement head office.
Your company’s compensation relative to this mandate is equal to €407,208.47 for the fiscal
b) not executed during the elapsed fiscal year
We have further been informed of the continuation of the following agreements and
commitments, already approved by the general meeting during previous fiscal years, that were
not executed during the last fiscal year.
1) Agreement relative to internal control with OSEO Industrie
On 29 June 2012, your board of directors authorised the signing of this agreement that is
intended to define the nature and provisions for the internal control services indicated in
amended regulation 97-02, provided by your company’s Inspectorate General-Audit and Risk
Permanent Control Department on behalf of OSEO Industrie. This agreement stipulates that the
services are performed in compliance with the Bpifrance Financement audit and permanent
control charters, and are scheduled each year by mutual agreement between the OSEO
Industrie executive body and your company’s internal control directors.
The compensation for these services is invoiced at the intervention cost, with reference to the
general agreement that governs the provisions for the invoicing of the services provided by your
company.
This agreement, signed on 2 July 2012, is subject to automatic renewal for a period of three
years. It produced no financial effect for the fiscal year ending on 31 December 2013.
2) Periodic control service agreement signed with Alsabail
Authorised by your board of directors on 16 December 2011, this agreement is intended to
define the nature and provisions of the periodic control services stipulated by amended CRBF
Regulation 97-02 and provided to Alsabail by your company’s Inspectorate General-Audit.
This agreement stipulates that the services will be performed in compliance with the Bpifrance
Financement audit charter and will be described in an audit plan, the content and provisions of
which are approved each year.
This agreement produced no financial effect for the fiscal year ending on 31 December 2013.
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3) Agreement relative to the implementation of the Restaurant Modernization Fund
(French acronym: FMR) signed between the State and the EPIC BPI-Groupe
This agreement relative to the implementation of the Restaurant Transmission and
Modernization Loans system (French acronym: PPMTR) notably calls for the set-up of two
funds: the PMR guarantee fund (formerly the “PPMTR” guarantee fund) and the subsidy
compensation fund for the zero rate PMR.
The State pays the sums resulting from the proceeds of the annual contribution on restaurant
sector sales as anticipated by the law, to the EPIC BPI-Groupe that releases them to the funds
on the basis of your company’s calls for funds.
This agreement, signed on 10 October 2011, produced no financial effect for the fiscal year
4) “Carried interest” retrocession agreement signed with the FSI PME Portefeuille
(former CDC Entreprises Portefeuille)
This agreement, signed on 30 May 2008, organises the provisions for the retrocession of the
“carried interest” between the parties, within the framework of their interests in the Avenir
Entreprises Développement FCPR. It produced no financial effect for the fiscal year ending on
31 December 2013.
5) “Carried interest” retrocession agreement signed with the FSI PME Portefeuille
(former CDC Entreprises Portefeuille)
Authorised by your supervisory board on 29 June 2007, this agreement defines the nature of the
services and provisions for the set-up and management of the investment and refinancing
operations on the financial markets, as carried out by your company on behalf of the EPIC BPIGroupe. As part of this arrangement, the EPIC BPI-Groupe has delegated the power to carry out
these operations to your company’s Financial Operations Department.
6) Agreement relative to the ERDF fund signed between Bpifrance Régions (former
OSEO Régions)
Authorised by your board of directors on 25 March 2004, this agreement defines the operating
provisions relative to the ERDF mechanism. It produced no financial effect for the fiscal year
7) Shareholder’s advance agreement signed with the State
These agreements relate to the set-up of the advances granted by the State to your company,
as part of the set-up of the over-mutualisation fund and the preserved capital fund. They
produced no financial effect for the fiscal year ending on 31 December 2013.
8) Counterparty agreements signed between Bpifrance Financement and the Agence
Française de Développement (AFD)
These agreements relate to the contribution of counter-guarantees relative to the FASEP and
DOM funds. They produced no financial effect for the fiscal year ending on 31 December 2013.
9) Business referral agreement signed between Bpifrance Financement and Avenir
Entreprises, Avenir Tourisme and Avenir PME
Through this agreement, authorised by your board of directors meeting on 26 March 1999, your
company granted exclusivity of its business referrals to each of the subsidiaries Avenir
Entreprises, Avenir Tourisme and Avenir PME.
Signed in Paris La Défense and Courbevoie, on 17 April 2014
KPMG AUDIT
Philippe SAINT-PIERRE
MAZARS
Virginie CHAUVIN
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10.4. Report on the Company’s Social Responsibility Report
Report from the independent third party organisations on the consolidated social,
environmental and societal information contained in the management report from
the Bpifrance Financement company
MAZARS SAS
PRICEWATERHOUSECOOPERS AUDIT
Report from the independent third party organisations on the consolidated social,
environmental and societal information contained in the management report from
the Bpifrance Financement company
In our capacity as independent third party organisations of the Bpifrance Financement company,
for which the admissibility of the accreditation request has been accepted by the COFRAC, we
have prepared all reports on the consolidated social, environmental and societal information
relative to the fiscal year ending on 31 December 2013, as presented in the management report
(hereinafter the “CSR Information”), in application of the provisions of article L 225-102-1 of the
Commercial code.
Company responsibility
The board of directors is required to prepare a management report that includes the CSR
Information indicated in article R. 225-105-1 of the [French] Commercial code, prepared in
compliance with the guidelines used by the company (hereinafter the “Guidelines”), a summary of
which is included in the introduction to part 3.3.8 “Corporate social responsibility (CSR) report” of
the management report, which is available on request from the company head office.
Independence and quality control
Our independence is defined by the regulatory texts, the profession’s code of ethics now as well
as the provisions contained in article L. 822-11 of the [French] Commercial code. Moreover, we
have implemented a quality control system that includes documented policies and procedures
intended to ensure compliance with the ethical rules, professional standards, and the applicable
legal and regulatory texts.
Responsibility of the independent third party organisations
It is our responsibility to certify, on the basis of our examinations:
-
-
that the required CSR Information is present in the management report or is the subject, if
omitted, of an explanation in application of the third sub-paragraph of article R 225-105 of the
Commercial code (Certification of the presence of the CSR Information);
and to express a moderate conclusion of assurance relative to the fact that the overall CSR
Information has been presented, in all of its significant aspects, in a truthful manner that
complies with the Guidelines (Well-founded opinion on the truthfulness of the CSR
Information).
Our works were performed by a team of 4 to 8 people between December 2013 and February
2014, for a duration of approximately 11 weeks. To assist us with the performance of our works,
we called on our CSR experts.
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We performed the works described below in compliance with the professional standards applicable
in France and with the order of 13 May 2013 that determined the provision under which the
independent third party organisation performs its task, and regarding the reasoned opinion of
truthfulness, relative to the ISAE 3000 international standard39.
1. Certificate of presence of the CSR Information
We examined, on the basis of interviews with the managers of the relevant departments, the
presentation of the orientations regarding sustainable development in keeping with the social and
environmental consequences related to the company’s activity and its societal commitments, as
well as, where relevant, the resulting actions or programmes.
We compared the CSR Information presented in the management report with the list provided in
article R. 225-105-1 of the [French] Commercial code.
In case of the absence of certain consolidated information, we verified that explanations were
provided in compliance with the provisions of article R. 225-105 sub-paragraph 3 of the [French]
Commercial code.
We verified that the CSR Information covered the consolidated perimeter, namely the company as
well as its subsidiaries for the purposes of article L. 233-1 and the companies that it controls for
the purposes of article L. 233-3 of the [French] Commercial code within the limits indicated in the
introduction to part 3.3.8 “Corporate social responsibility (CSR) report” of the management report.
On the basis of these works, and in keeping with the limits mentioned above, we certify the
presence of the required CSR information within the management report.
2. Well-founded opinion on the truthfulness of the CSR Information
Nature and extent of the works
We performed approximately 10 interviews with the persons in charge of preparing the CSR
Information within the department in charge of the information collection processes and, if relevant,
the managers of the internal control and risk management procedures, in order to:
-
-
39
assess the appropriate nature of the Guidelines in view of their relevance, exhaustiveness,
reliability, neutrality and understandable nature, while taking into consideration, where relevant,
the sector’s best practices;
verify the set-up of a collection, compilation, treatment and control process that targets the
exhaustiveness and coherency of the CSR Information, and that reviews the internal control
and risk management procedures relative to the preparation of the CSR Information.
ISAE 3000 – Assurance engagements other than audits or reviews of historical financial information
We determined the nature of the scope of our tested verifications on the basis of the nature and
importance of the CSR Information in view of the company’s characteristics, the social and
environmental stakes of its activities, its orientations with regard to sustainable development, and
the best practices in the sector.
For the CSR Information that we considered to be most important40, on the level of the
Sustainable Development Department and of the Human Resources Department, we:
-
-
consulted the documentary sources and carried out interviews in order to corroborate the
qualitative information (organisation, policies, actions), we performed analytical procedures on
the quantitative information and verified, on the basis of sampling, the calculations as well as
the consolidation of the data, while verifying their coherence and agreement with the other
information contained in the management report;
carried out interviews so as to verify the correct application of the procedures, as well as
detailed tests on the basis of samples, in order to verify the completed calculations and
compare them with the data from the supporting documents. The selected sample therefore
represents 100% of the personnel, 100% of the environmental quantitative information and
100% of the societal quantitative information.
For the other consolidated CSR Information, we assessed its coherency relative to our knowledge
of the company.
Finally, we assessed the relevance of the explanations, as relevant, relating to the total or partial
absence of certain information.
We consider that the sampling methods and sizes of the samples that we used in order to arrive at
our professional judgment allow us to formulate a conclusion with moderate assurance; a greater
level of assurance would require more extensive verification works. Given the recourse to the
usage of sampling techniques as well as the other limits inherent to the operation of any
information and internal control system, the risk of non-detection of a significant anomaly in the
CSR Information cannot be totally eliminated.
40
Total personnel and distribution by sex, Age pyramid, Number of new hires and departures, Amount of the wages, Number of women and men
within the company, Paper consumption, Energy consumption at Le Vaisseau, A strong societal impact, Percentage of employees who have
received training on the efforts to combat money laundering.
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Conclusion
On the basis of our works, and subject to this reservation, we have uncovered no significant
anomaly that would call into question the fact that the CSR Information has been presented, in all
of its significant aspects, in a sincere and truthful manner in compliance with the Guidelines.
Drafted in Paris La Défense on 17 April 2014.
The independent third party organisations
MAZARS SAS
EMMANUELLE RIGAUDIAS – ASSOCIATE
CSR AND SUSTAINABLE DEVELOPMENT
DEPARTMENT
PRICEWATERHOUSECOOPERS
AUDIT
ANIK CHAUMARTIN - ASSOCIATE
11.1. Background and evolution of the Issuer
The EPIC (Public Establishment with an Industrial and Commercial Nature) OSEO was born in 2005 from the merger
of ANVAR (Agence nationale de valorisation de la recherche), the BDPME (Banque du Développement des PME)
and its subsidiary Sofaris (Société française de garantie des financements des PME). Through these three structures,
that became subsidiaries of the EPIC and were renamed OSEO innovation, OSEO financement and OSEO garantie,
the EPIC OSEO was given the task of financing and supporting SMEs through three business lines: innovation
support, financing of investments and of the operating cycle in partnership with banks, and guaranteeing bank loans
and capital transactions.
In 2007, as part of the Government’s policy to promote and develop the investments devoted to research and
innovation, priority was given to supporting innovation within medium-sized companies. For this purpose, the
Government decided to merge the Agence de l’Innovation Industrielle (AII) with OSEO, in view of the general interest
mission shared by them: financing and supporting companies during the most decisive phases of their existence. As
such, on 1 January 2008 and after the dissolution of the AII, the “Industrial Strategic Innovation” activity was
transferred to OSEO innovation by the State.
In order to improve OSEO’s responsiveness and effectiveness, and therefore the quality of its services, while also
helping to clarify and simplify its organisation, the project to merge the group’s operational entities was initiated in
2008. It was made possible by law n°2010-1249 on banking and financial regulation of 22 October 2010, and took the
form of a merger through absorption by the OSEO financement company, that became the SA OSEO, of the
companies OSEO garantie, OSEO innovation and OSEO bretagne.
In early 2011, the President of the Republic announced the creation of the bank for industry, OSEO Industrie, a 100%
subsidiary of OSEO SA, provided with capital of €1 billion and intended for the financing of the industrial investments
of companies, including mid-tier companies. This capital resulted from an allocation of €1 billion from the shareholding
(via EPIC OSEO for the State) for the benefit of OSEO SA.
On 16 June 2012, the Minister for the Economy announced the creation of the Banque Publique d’Investissement
(BPI - Bank for Public Investment): a public group intended to support the financing and development of companies,
acting in accordance with public policies implemented by the State and by the Regions. The group gathers the
activities of OSEO, CDC Entreprises and the Strategic Investment Fund. The creation of the Public Investment Bank
was made official under Order n°2012-1559 of 31 December 2012, which amended Order n°2005-722 of 29 June
2005 relating to the creation of the EPIC OSEO that became the EPIC BPI-Groupe, and the creation of the limited
liability company OSEO SA that became the limited liability company BPI-Groupe SA. This public limited liability
company has been held – since 12 July 2013 – in equal shares by the State via the EPIC BPI-Groupe, and the Caisse
des Dépôts et Consignations. The SA OSEO, now called Bpifrance Financement, became a subsidiary of SA BPIGroupe, just like the entities that include the own funds activities of CDC Entreprises and the FSI, that have become
Bpifrance Investissement and Bpifrance Participations.
11.2. Company name, registration, incorporation date and term, registered offices
The Société Anonyme Bpifrance Financement is registered on the Créteil Trade and Companies Register under
number Créteil TCR 320 252 489 (APE code 6492 Z).
Bpifrance Financement was created on 22 December 1980 under the name of Crédit d’Equipement des PME. The
term of the company is set at ninety-nine years starting on 14 November 1980.
The registered offices are located on 27-31, avenue du Général Leclerc 94710 Maisons-Alfort, Paris, telephone:
01.41.79.80.00.
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11.3. Legal form, regulatory texts and applicable legislation
11.3.1. Information included for reference
Pursuant to article 28 of European Commission regulation (EC) n°809/2004, the following information is included for
reference in the reference document:
-
for the 2012 fiscal year, the reference document for 2012 was deposited with the Financial Markets Authority
(Autorité des Marchés Financiers) on 30 June 2013, under deposit number D.13-0485. The consolidated financial
statements appear in pages 68 to 143 and the corresponding audit report is on page 190. The certificate from
those in charge of verifying the financial statements appears on page 212. This reference document was updated
on 24 May 2013, under filing n° D.13-0485-A01, with the information regarding the decision of the General
Meeting on 14 May 2013 to distribute a dividend per share of €0.10, rather than €0.15 as proposed by the Board
of Directors on 29 March 2013.
-
for the 2011 fiscal year, the reference document for 2011 was deposited with the Financial Markets Authority
(Autorité des Marchés Financiers) on 27 April 2012, under deposit number D.12-0465. The consolidated financial
statements appear in pages 76 to 155 and the corresponding audit report is on page 199. The certificate from
those in charge of verifying the financial statements appears on page 218. This reference document was updated
on 25 July 2012, under filing n° D.12-0465-A01, with the information regarding the decision of the General
Meeting on 14 May 2012 to distribute a dividend per share of €0.17.
11.3.2. Trend information
Bpifrance Financement certifies that no significant deterioration has affected its prospects since the date of its last
audited and published financial statements.
11.3.3. Legal proceedings and arbitration
Bpifrance Financement certifies that over the last twelve months, no government, legal or arbitration proceedings of
which it is aware, which are pending or by which it is threatened, are likely to have or have had any significant effect
on the financial position or profitability of the company or the group.
11.3.4. Significant change in the issuer’s financial position
Bpifrance Financement certifies that no significant change in the group’s financial position has taken place since the
end of the last fiscal year for which audited financial statements were published.
11.3.5. Conflicts of interest on the levels of the administration and management bodies
To the best of Bpifrance Financement’s knowledge, there is no conflict of interest between the obligations to the
issuer of any of the members of the Board of Directors and their private interests and/or other obligations.
11.3.6. Documents available to the public
Bpifrance Financement certifies that:
-
copies of the act of incorporation and bylaws of the issuer may be consulted at its registered offices, 27-31
avenue du Général Leclerc 94710 Maisons-Alfort Cedex,
-
the 2013 annual report of the Bpifrance Financement company can be accessed on its website: bpifrance.fr,
-
the 2011 and 2012 annual reports, serving as reference documents, are available for consultation on the website:
bpifrance.fr.
12. PERSONS RESPONSIBLE FOR THE REFERENCE DOCUMENT AND THE AUDITS
12.1. Responsible person
The Chairman and Chief Executive of Bpifrance Financement, Mr. Nicolas DUFOURCQ, is responsible for the
information contained in the present document.
12.1.1. Statement of the Chairman and Chief Executive
I hereby certify having taken all reasonable measures to that effect so that the information contained in this document
is, to the best of my knowledge, a true representation of the facts and contains no omission likely to affect its
interpretation.
From the statutory auditors, I have obtained a certificate of completion in which they indicate that they have examined
the information bearing on the financial position and financial statements contained in the present reference document
and that they have read the document in its entirety.
The historical financial information presented in this document is the subject of reports by the statutory auditors, for
the consolidated financial statements appearing on pages 205 to 208 of the said document, while including an
observation on page 206. Moreover, the financial information presented in the reference documents for 2011 and
2012 were the subject of reports by the legal controllers, that contain, for the 2011 reference document, an
observation on page 199.
I certify that, to the best of my knowledge, the financial statements have been prepared in compliance with the
applicable accounting standards, and provide a fair picture of the assets, financial situation and earnings of the issuer
and of all of the companies included in the consolidation, and that the management report includes a faithful listing of
the evolution of the business, results and financial situation of the issuer and of all of the companies included in the
consolidation, as well as a description of the main risks and uncertainties with which they are faced.
The Chairman and Chief Executive
Nicolas DUFOURCQ
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12.2. Statutory auditors
12.2.1. Current
MAZARS, member of the regional association of Versailles, Exaltis - 61 rue Henri Regnault 92075 La Défense Cedex
- appointed for the first time in 1996 and whose term of office was renewed by the Ordinary General Meeting on 27
May 2010 and that expires at the close of the General Meeting examining the financial statements of the fiscal year to
31 December 2015, represented by Virginie CHAUVIN.
The individual and consolidated financial statements for the fiscal year ending on 31 December 2011 were audited
and certified by Virginie CHAUVIN. The individual and consolidated financial statements for the fiscal year ending on
31 December 2012 were audited and certified by Virginie CHAUVIN.
KPMG Audit, member of the regional association of Versailles – 3 cours du Triangle - Immeuble Le Palatin - 92 939
Paris la Défense – appointed for the first time in 2009 and whose term of office expires at the close of the Ordinary
General Meeting examining the accounts of the financial year to 31 December 2014, represented by Philippe SAINTPIERRE.
The individual and consolidated financial statements for the fiscal year ending on 31 December 2011 were audited
and certified by Marie-Christine FERRON-JOLYS and Philippe SAINT-PIERRE. The individual and consolidated
financial statements for the fiscal year ending on 31 December 2012 were audited and certified by Marie-Christine
FERRON-JOLYS and Philippe SAINT-PIERRE.
12.2.2. Alternate auditors
Mr. Franck Boyer
61 rue Henri Regnault - 92075 La Défense Cedex
Appointed by the General Meeting of 27 May 2010 for a term of 6 fiscal years
Member of the Regional Association of Versailles
The term of office for Bpifrance Financement expires in 2016.
Mr. Jean-Marc LABORIE
3 cours du Triangle - Immeuble Le Palatin - 92939 Paris la Défense
Appointed by the General Meeting of 28 May 2009 for a term of 6 fiscal years
Member of the Regional Association of Versailles
The term of office for Bpifrance Financement expires in 2015.
1. PERSONS RESPONSIBLE
232
2. STATUTORY AUDITORS
233
3. RISK FACTORS
25 to 30
4. INFORMATION ABOUT THE ISSUER
4.1. History and evolution of the company
230
5. BUSINESS OVERVIEW
5.1. Main activities
5.2. Main markets
17 to 22
17 to 22
6. ORGANISATIONAL CHART
65 and 66
7. INFORMATION ON THE TRENDS
231
8. PROFIT FORECASTS OR ESTIMATES
NOT APPLICABLE
9. ADMINISTRATIVE, MANAGEMENT AND SURVEILLANCE BODIES
9.1. Members of the administration, management and supervisory bodies
9.2. Conflicts of interest
8 to 11
231
10. MAIN SHAREHOLDERS
7
11. FINANCIAL INFORMATION CONCERNING THE ISSUER’S ASSETS, FINANCIAL SITUATION AND EARNINGS
11.1. Historical financial information
11.2. Financial reports
11.3. Reports from the Statutory auditors
11.4. Date of the latest financial information
11.5. Interim and other financial information
11.6. Legal proceedings and arbitration
11.7. Significant change in the issuer’s financial position
68 to 74
68 to 204
205 to 229
68
N/A
231
231
12. IMPORTANT CONTRACTS
NOT APPLICABLE
13. THIRD PARTY INFORMATION AND STATEMENTS BY EXPERTS, AND DECLARATIONS OF ANY INTERESTS
NOT APPLICABLE
14. DOCUMENTS AVAILABLE TO THE PUBLIC
231
15. INFORMATION INCLUDED FOR REFERENCE
231
| 233
Public Limited Company with Board of Directors
With capital of €750,860,784
CRETEIL TCR number 320 252 489
Registered office
27-31, avenue du Général Leclerc
94710 Maisons-Alfort cedex
Tel. : 01 41 79 80 00 - Fax: 01 41 79 80 01
www.bpifrance.fr

Report - Bpifrance

Transcription

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