EPIC BPI-GROUPE ANNUAL REPORT 2013

Transcription

EPIC BPI-GROUPE
ANNUAL
REPORT
2013
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EPIC BPI-Groupe Annual Report 2
CONTENTS
1. FOREWORD BY THE PRESIDENT OF THE EPIC BPI-GROUPE AND THE CEO OF THE LIMITED COMPANY BPI-GROUPE
1.1. Message from the President of the EPIC BPI-Groupe
1.2. Message from the CEO of the limited liability company SA BPI-Groupe
5
5
6
2. BPIFRANCE’S KEY FIGURES
7
3. MANAGEMENT REPORT
8
3.1. Corporate Governance
3.2. Functions of the Management Board
3.3. Activity Report for both Bpifrance and its subsidiaries for the year 2013
8
9
10
4. ORGANISATIONAL CHART OF BPIFRANCE
4.1. Functional organisational chart
4.2. Network Structure
47
47
48
5. CONSOLIDATED FINANCIAL STATEMENTS
49
6. INDIVIDUAL FINANCIAL STATEMENTS
84
7. REPORTS FROM STATUTORY AUDITORS
7.1. Report on the consolidated financial statements
7.2. Report on the individual financial statements
99
99
102
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1. FOREWORD BY THE PRESIDENT OF THE EPIC BPI-GROUPE AND THE CEO OF THE LIMITED COMPANY BPI-GROUPE
1.1. Message from the President of the EPIC BPI-Groupe
Continuing its efforts to rationalise the support structures available to SMEs while promoting the development of
investment, innovation and the internationalization of companies, the EPIC BPI-Groupe (formerly EPIC OSEO) was
extensively involved in 2013 in the creation of the Public Investment Bank (BPI) that brought in the State alongside
the Caisse des Dépôts et Consignations.
The limited company BPI-Groupe SA, known as Bpifrance, is now the parent company of the group’s operational
subsidiaries, Bpifrance Financement and Bpifrance Investissement. It was approved as a financial company after the
group’s capital operations carried out on 12 July 2013. At the same time, the EPIC BPI-Groupe lost its capacity as a
financial company and is no longer subject to all the regulations applicable to credit institutions, and particularly the
provisions of regulation 97-02 of the Consultative Committee on Financial Legislation and Regulations.
In 2013, the governance of the EPIC BPI-Groupe was modified: Bruno Durieux was appointed as Chairman and Chief
Executive Officer of the EPIC BPI-Groupe by decision of the Minister for the Economy and Finance on 12 July 2013
and until 31 December 2013. Similarly, the composition of the establishment’s Board of Directors was renewed by
decree dated 15 July 2013.
In 2014, the EPIC BPI-Groupe will pursue its general interest mission, namely promoting and supporting innovation,
contributing to the transfer of technologies, and encouraging the development and financing of SMEs.
François AUVIGNE
Chairman and CEO of the EPIC BPI-Groupe
since 1 January 2014
1.2. Message from the CEO of the limited liability company SA BPI-Groupe
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.
As such, the credit activity attained an historical level of €5 billion of medium to long-term commitments, which served
to leverage the mobilisation of €16 billion of lending operations. With regard to the short-term lending operations, €4
billion were committed, which is also unprecedented. The CICE (Competitiveness and Employment Tax Credit) Prefinancing, 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 efforts in the area of innovation financing were also strengthened by the
roll-out of new loan offers. In addition, Bpifrance put together an innovation action plan, the “NOVA” plan, based on
three key aspects: simplification, support, financing continuum.
A new organisation was implemented for the investment division in 2013, and it is now structured around four
business lines: funds of funds, direct investment in SMEs, direct investment in innovation capital, and direct
investment in medium-sized companies (mid-tier companies) and large companies (LC). This organisation will take
final shape in April 2014 when more than 300 employees from CDC Entreprises, the FSI and FSI Regions will be
transferred to Bpifrance Investissement, the group’s single management company looking after nearly €20 billion of
assets. In 2013, Bpifrance continued its fund of funds efforts against a backdrop marked by the attrition of capital for
SMEs, while fully playing its role of encouraging private subscribers in order to ensure the structuring of the financing
chain for growing SMEs: the level of subscriptions carried out in partner funds increased to €444 million. Despite a
difficult market, investment in the own funds of SMEs resisted well: 91 operations were carried out during the fiscal
year for €121 million invested. The activity of the ETIGE own funds business line continued at a similar pace as in
2012: €368 million for 16 operations, versus €356 million invested the previous year. Moreover, the direct innovation
capital activity led to subscriptions of €111 million for 35 operations, i.e. 54% growth relative to 2012, notably thanks
to the creation of the Large Venture activity.
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
General Manager of the SA BPI-Groupe
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2. BPIFRANCE’S KEY FIGURES

“Investment” Division
In millions of euros
Authorized Commitments
Fund of funds
SME Equity Financing
Innovation
Mid-caps & large companies’ equity financing
Subscriptions
Fund of funds
Innovation
Distributions
Fund of funds
Innovation
Capital increases or decreases
Fund of funds
Innovation
Assets under management
Fund of funds
Innovation
2012
2013
1 353
479
222
136
517
1 776
390
161
74
1 152
519
82
36
1
400
94
4
2
-2
91
20 626
5 195
1 570
543
13 317
912
405
176
106
224
1 044
444
122
111
367
1 186
111
73
2
1 001
417
3
15
1
398
20 039
5 065
1 848
639
12 487
* For direct holdings concerning « Mid-caps & Large Companies » and the « Innovation » line of business, amounts indicated
correspond to the valuation process used according to the IFRS standards applied at the end of each financial period.

“Financing” Division
(In millions)
ACTIVITY
Innovation aid (AI, ISI, FUI, FIS, PSPC)
Guaranteed Loans
Guaranteed loans provided by Bpifrance
Régions
Investment co-financing
CICE advances (Competitiveness &
Employment Tax Credit)
Short-term financing (advances)
PERSONNEL (1)
(1)
Average personnel on permanent contracts, paid as
full-time equivalent on 31 December
2011
2012
change
2012
2013
2013
change
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
4,701
12.9%
5,073
7.9%
-
-
N/A
737
N/A
6,302
1641
7,001
1641
11.1%
-
7,810
11.6%
3. MANAGEMENT REPORT
3.1. Corporate Governance
3.1.1. Board of Directors on 1 January 2014
Chairman of the Board
1
François AUVIGNE
Inspector General of Finances at the Inspectorate-General for Finance
Board members representing the State
2
Juliette D’ABOVILLE
Head of the Legal Division at the “Agence des Participations de l’Etat” (State Holdings Agency)
Delphine D’AMARZIT
Benjamin GALLEZOT
Assistant General Manager for Competitiveness, Industry and Services at the Directorate General for
Competitiveness, Industry and Services (DGCIS)
Laurence HARTMANN
Assistant to the Department Head for Partnerships and Valutation at the Ministry for Higher Education and Research
Vincent MOREAU
Deputy Director of the Budget Department’s 3rd Sub-Department
Guests
Jean-François GUTHMANN
Head of the Economic and Financial Control Service
3
Olivier BUQUEN
Economic and Financial General Controller
Statutory Auditors
MAZARS, represented by Virginie CHAUVIN
KPMG Audit FS I, represented by Philippe SAINT-PIERRE and Marie-Christine FERRON-JOLYS
3.1.2. General Management
General Manager
François AUVIGNE
1
Appointed by decision of the Minister for the Economy and Finance on 31 December 2013
Appointed by decree dated 15 September 2013
3
Since 27 January 2014
2
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3.2. Functions of the Management Board
Chairman and Chief Executive Officer
François AUVIGNE
Member of the Supervisory Board representing the State of the EPIC Société du Grand Paris (SGP)
Director representing the State at the Laboratoire Français du Fractionnement et des Biotechnologies (LFB SA), its
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subsidiary LFB Biomédicaments and the Société Nationale des Poudres et Explosifs (SNPE)
Chairman of the LFB SA Audit Committee
Board members representing the State
Juliette D’ABOVILLE
Head of the Legal Division at the Agence des participations de l’Etat
Director representing the State to the company TSA, to the Compagnie Générale Maritime et Financière (CGMF) and
to the Société de Gestion de Garantie et de Participations (SGGP)
Delphine D’AMARZIT
Director representing the State to the SA BPI-Groupe, to Dexia and to the Agence Française de Développement
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(AFD)
Benjamin GALLEZOT
Assistant General Manager for Competitiveness, Industry and Services at the Directorate General of
Competitiveness, Industry and Services (DGCIS)
Laurence HARTMANN
Assistant to the Department Head for Partnerships and Valutation - Innovative companies and Emerging sectors at
the Directorate General for Research and Innovation within the Ministry for Higher Education and Research
Permanent invited member of the Board of Directors of the Association des Instituts Carnot
Vincent MOREAU
Deputy director of the Budget Department’s 3rd Sub-department
Director representing the State to Bpifrance Financement
Director of the CNRS, CNES, CEA, ANR and of the Etablissement public de Paris Saclay
4
Until December 2013
Until June 2013
5
3.3. Activity Report for both Bpifrance and its subsidiaries for the year 2013
3.3.1. The group’s highlights in 2013
2013 was the year of the creation of the Banque Publique d’Investissement (BPI - Public Investment Bank), jointly
held by the EPIC BPI-Groupe and the Caisse des Dépôts et Consignations.
In terms of financing-related business lines, 2013 was marked by the roll-out of new financing, pre-financing and
guarantee products, and on the investment side, by the creation of new investment funds.
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 Bpifrance board of directors is held in Dijon and appoints its chairman, Jean-Pierre
Jouyet, General Manager of the Caisse des Dépôts and Consignations.

21 February 2013: appointment of the Bpifrance executive committee.

17 April 2013: the first meeting of the National Orientation Council (CNO) in Caen. The task of the CNO is to
give an opinion on the strategic orientations, intervention doctrine and provisions whereby BPI-Groupe 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 envelope 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: set-up of the Bpifrance group SA by completion of a process of contributions, whereby:
(a) the State contributed to BPI-Groupe SA 49% of the share capital and voting rights of Bpifrance
Participations and its equity interest in Sofired,
(b) EPIC BPI-Groupe contributed to the BPI-Groupe SA 62.81% of the share capital and voting rights of
OSEO and
(c) the Caisse des Dépôts et Consignations notably contributed to BPI-Groupe 51% of the share capital and
voting rights of Bpifrance Participations, all of the share capital and voting rights of CDC Entreprises-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 are henceforth equal
shareholders of BPI-Groupe, with each holding 50% of the capital and voting rights (subject to five shares
loaned in order to comply with the rules applicable to public limited companies), the capital of which is equal
to €20,981,406,140. BPI-Groupe has the capacity of a financial company.
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(d) BPI-Groupe SA allocated to the Strategic Investment Fund (FSI) (now Bpifrance Participations) the assets
received that same day from the Caisse des Dépôts et Consignations.

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 best practices charter between the French Private Equity Investors
Association (AFIC) and Bpifrance 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:

Prêt développement export (PDE) (Export Development Loan)): 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.

Prêt numérique (Digital Loan), as part of the “Investing in the Future” Programme (Programme
d’Investissements d’Avenir). 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.

Prêt pour l’industrialisation des pôles de compétitivité (PIPC) (Loan for the Industrialization of
Competitiveness Clusters (LICC) : set up in late 2013 as part of the Investing in the Future Programme (PIA),
the LICC 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 CICE(Competitiveness and Employment Tax Credit), in the form of direct pre-financing
and of a guarantee system encouraging the pre-financing and deployment of a specific offer for VSEs.

Fonds de redressement de la trésorerie des PME (SME cash position recovery fund): €500 million of shortterm credit facilities for the benefit of VSEs and SMEs.
Key events for the “Investment” division:
2013 saw the set-up of a new organisation within the Bpifrance “investment” division, that resulted in the creation of
the 4 following business lines:

Funds of funds, this business line primarily looks after the management of the equity interests in affiliated funds
and private funds of funds subscribed via the funds of funds managed in connection with of the following
investment programmes:
o
o
o
PMEI programme (FPCR 2000, FCIR, FFT3 and FPMEI),
FSI France Investissement programme (FFIA, FFIB and FFI 2),
FSI France Investissement 2020 programme (FFFI 3).
The funds of funds business line is also in charge of asset management on behalf of third parties such as the Fonds
National d’Amorçage (national priming fund), hereinafter referred to as the “FNA” (PIA) that was not subscribed by
Bpifrance.

SME Own Funds, this business line is in charge of the management of the following funds:
o
o
o
France Investissement Croissance (FCID, FCID 2 and OC+A),
Sector-specific funds (including Patrimoine et Création, FSFE, Croissance Rail, FDEN, Fonds Stratégique
Bois, Mode et Finance, Patrimoine and Création 2…),
France Investissement Croissance Régions (AED, AEM, OC+B, FSI Régions 1 and FSI Régions
Mezzanine),

Innovation, the innovation teams are in charge of managing the Large Venture activity as well as the funds
subscribed by Bpifrance such as the Bioam and Innobio funds, and the funds raised as part of the PIA (FSN PME
Ambition Numérique, Fonds Ecotechnologies and Fonds Biothérapies Innovantes et Maladies Rares).

ETI / GE(Entreprises de Taille Intermédiaire et Grandes Entreprises) Own Funds is the fourth business line
of the “investment” division that was distinguished at the time of the creation of Bpifrance; its portfolios are
subscribed by Bpifrance Participations. This division’s teams look after the management:
o
o
o
of the strategic equity interests in large companies (e.g.: Orange)
of the equity interests acquired in mid-tier companies with the ETI 2020 fund to which €3 billion have
been allocated, including a contribution of assets historically held by the former FSI, for approximately
€850 million.
of the sector-specific funds in charge of providing support to equipment makers in the automobile sector,
on ranks 1 and 2 (FMEA and FMEA rank 2).
Key events for the EPIC BPI-Groupe:
Appointment of the Chairman and Chief Executive of the EPIC BPI-Groupe:
By decision dated 31 December 2013, the Minister for the Economy and Finance appointed Mr. François AUVIGNE,
Inspector General of Finances, as Chairman and Chief Executive of the Public Establishment BPI-Groupe on an
interim basis as of 1 January 2014. He thereby succeeds Mister Bruno DURIEUX, also an Inspector General of
Finances, whose term of office has come to an end. Bruno DURIEUX had himself been appointed by a decision of the
Minister of Economy and Finance dated 12 July 2013, as successor to François DROUIN.
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3.3.2. The missions and business lines of Bpifrance
A public group in the service of the financing and development of companies, Bpifrance acts in support of the policies
implemented by the State and Regions. Law n°2012-1559 of 31 December 2012 assigned to it the mission of
promoting innovation, the seed stage, development, and internationalization, transformation and transfer / buy-out of
companies, by contributing to their financing through loans and own funds.
The SA BPI-Groupe is a holding company that acts through its subsidiaries Bpifrance Financement (financing
division), and Bpifrance Participations and Bpifrance Investissement (investment division).
The missions and business lines of these two divisions are presented below, along with their intervention provisions.
3.3.2.1. “Financing” division
The missions and business lines of Bpifrance Financement

Missions of the Financing division
Bpifrance Financement is a neutral marketplace actor, whose purpose is to bring in, for the benefit of companies, all
of the financing partners beginning with the banks, as well as the innovation development networks, while providing
co-financing along with private banks.
With respect to private players and the rules of the competition law, Bpifrance Financement provides companies with
financing during their riskiest phases, such as the creation of a company or its transfer / buy-out, or their innovation
and internationalization phases, but also as part of capacity investments. To this end, it relies on endowments from
public actors on various levels: State, local authorities (notably the regions) and the European Union.
Its general interest mission requires Bpifrance Financement to work as closely with the territories as possible, in
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favour of VSEs, SMEs and mid-tier companies, irrespective of their legal status (including ESS and local public
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companies with a retail activity), in all business sectors except financial services. Its public nature also implies
particular openness to the companies in each region, and a search for solutions with all partners.
Bpifrance Financement is subject to the regulations regarding State assistance (guarantee funds, researchdevelopment and innovation, subsidized loans) that most notably govern the financing of companies facing
demonstrable difficulties or ones that are not up-to-date in their social and fiscal contributions.
As a lending institution, Bpifrance Financement is subject to banking regulations (CRBF 97.02) that result in many
obligations, such as the obligation to operate on an arm’s length basis, without improper support or unfair loans, the
requirement for a risk prevention system (financial, image and operational risks), separation of the roles, as well as
systems for measuring the supervision and control of risks.
Its activity and operation are subject to oversight by the Prudential Control and Resolution Authority.

Financing division business lines
The three main business lines of the Bpifrance “financing” division are the financing of investments and of the
operating cycle, guarantees and innovation support, with a growing international focus.
The financing of investments and of the operating cycle
In partnership with banking and financial establishments, Bpifrance Financement contributes to investment financing:


6
7
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, Transfer / buy-out, Innovation), long and patient, without guarantee or surety taken on the
company or its directors.
Special status companies (cooperatives, SCOP, mutual companies, associations) or that have a strong social impact
SEM, SPL, SPLA
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 the creation of companies
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 CICE (Competitiveness and Employment Tax Credit) .
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 – guarantee for international projects).
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 guarantee 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 Financement innovation branch is to provide a response to the financing needs of
innovative individual or collaborative projects, from the idea through to the market, in case of any failure with regard to
classical financing tools. Bpifrance Financement 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 is 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.
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).
Bpifrance also put together the “Nova” cross-functional action plan for innovation. 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.
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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 et Consignations, 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 in November 2013 by Fleur Pellerin, Deputy minister to the Minister for Productive recovery,
in charge of Small and Medium-Sized Companies, Innovation and the Digital Economy, as the operator of the French
Tech Accélération fund 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 acceleration programme in San Francisco,
Ubi I/O, in order to help high-potential innovative companies to establish themselves in the United States.
Moreover, the Bpifrance network teams previously dedicated exclusively 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 (LICC) was set up in late 2013 as part of the Investments for the Future Programme, in order to finance the
downstream expenses of a collaborative R&D project.
Bpifrance is also the operator of the Worldwide Innovation Contest (Innovation 2030) intended to assist with 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.

Intervention means of the Financing division’s various business lines
Bpifrance Financement is active in three main business lines (financing of investments and of the operating cycle,
guarantee, innovation support) 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 / buy-out, 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 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.
3.3.2.2. “Investment” division
The missions and business lines of Bpifrance Investissement

Missions of the Investment division
As part of the creation of Bpifrance, the investment doctrine was clarified during the first half of 2013, then adopted by
the BPI-Groupe board of directors on 25 June 2013. Applying to the entire Bpifrance “investment” division, this
doctrine can be summarized as follows.
By means of its capital transactions, the Bpifrance “investment” division finances the development and growth of
VSEs and SMEs, carrying on from the FSI France Investissement 2020 programme, with the aim of promoting the
emergence, consolidation and multiplication of mid-tier companies, an essential link in the competitiveness of the
French economy and the development of exports.
The investments of Bpifrance, both within funds and within companies, are carried out selectively, in compliance with
professional best practices, and on the basis of the potential for value creation (for investors and for the national
economy) of the financed companies or funds. However, Bpifrance is not an investor like any other. As an informed
investor operating on an arm’s length basis in the service of the collective interest, it completes the investment offer in
market segments that are characterized by a lack of sufficiently qualified private funds. As such, Bpifrance devotes a
significant part of its capital transactions, using its own resources and those of third party investors managed by it, to
segments including the seed-stage, venture capital, growth capital and capital transfer / buy-out, as well as to funds
that target profitable companies within the social and interdependent economy, that spontaneously attract few
classical investors as a result of their status. Bpifrance also strives to provide the market with an offer of mezzanine
funds as a supplement or replacement for own funds investments, for companies whose shareholders do not wish to
open the capital to third party investors.
Within this framework, all of the operations in which Bpifrance is involved within the framework of its “investment”
business line, adhere to the following guidelines:

Via acquisitions of minority interests, Bpifrance attempts to use public investment in order to draw in private
investment. Whether investing its own resources or those of other public or private subscribers managed by it,
Bpifrance systematically seeks out private co-investors to which it leaves the bulk of the shares, in an effort to
stimulate the investment market;
|

Bpifrance is an informed investor that operates on an arm’s length basis. When it invests, Bpifrance applies the
same financial and legal provisions as the co-investors (pari passu). Insofar as possible, it holds a seat on the
boards of directors of the companies in which it invests, and within the consultative and strategic committees of
the partner funds;

Bpifrance is a patient investor. It adapts its investment horizon most notably to the company’s technological
context, and can accept to see the profitability of its investments only take shape over a longer horizon than
would be acceptable for most private investors. This is notably the case in the very risky market segments (seedstage, venture capital, strong R&D intensity). It focuses on long-term support for the companies in which invests,
which does not exclude a rotation of the portfolio of assets in sync with the private co-investors, for the purposes
of good risk management, of generating manoeuvring margins in order to finance new investments, and of
enhancing the value of its assets;

Bpifrance is in the service of the collective interests. In addition to necessarily assessing the financial
performance of the companies (profitability, sustainability, liquidity), its investment decisions are taken in view of
how the projects will impact the competitiveness of the French economy as valued with the help of a multi-criteria
analysis grid that includes extra-financial criteria such as the export and international development potential, the
contribution to innovation, ESG practices (environmental, social and corporate governance), the effects on
employment and territorial development, the role within the sector, the development of family companies, etc.

To ensure that its investments are efficiently contributing to the growth and development of companies, Bpifrance
prefers to contribute new money to the companies in which it invests, alongside other investors. As such,
Bpifrance aims to serve as a relay for private venture capital, or to bring about the de-listing of a target through
the purchase of shares, in the following three cases:
- the generational transfer of a SME,
- the withdrawal of some historical investors from within companies with high growth potential, notably
innovative ones,
- the purchase of equity interests in order to maintain a significant presence of French investors within the
capital of companies that are considered to be sensitive or strategic.

Bpifrance does not invest in the capital of certain categories of companies:
- Companies dedicated to the financing of infrastructure construction projects. On the other hand, Bpifrance
can invest in companies involved in the construction or operation of infrastructures;
- Companies for which the main activity is real estate promotion or administration;
- Banks and insurance companies;
- Editorial press bodies or polling companies, in order to prevent any conflict of interest and to maintain its
neutrality;
- Mixed economy companies (SEM) that can nevertheless be the subject of investments by the Caisse des
Dépôts et Consignations,
with the understanding that any investment decision likely to result in competition with other entities of the Caisse
des Dépôts et Consignations group will be the subject of specific coordination.

Exceptionally, Bpifrance can be involved in the turnaround segment that targets the recovery of companies facing
difficulties, particularly SMEs and the smallest mid-tier companies, but only while taking particular precautions.
Indeed, by their very nature, such investments violate the Bpifrance guidelines for three reasons:
- They generally require a majority investment in order to be in possession of all of the levers for action;
- Public investments in companies in difficulty are the subject of a presumption of State aid and must, as
such, be systematically declared to the competition authorities; this results in longer timeframes, and even the
potential non-completion of the investment operation;
- As a public investor, Bpifrance would be subject to considerable image risks if involved in the restructuring of
companies in difficulty.
In view of these elements, Bpifrance will give preference to turnaround investments by means of a minority
investment, alongside private investors, within funds that are managed by specialised independent teams.
The application of this doctrine also takes into account the notion of a socially responsible investor, which it promotes
with its partner funds and the finance companies as part of a clear ethical framework.

The Investment division’s business lines
The Bpifrance “Investment” division is structured around four business lines:

Fund of funds, this business line primarily looks after the management of the equity interests in affiliated funds
and private funds of funds subscribed via the funds of funds managed in connection with of the following
investment programmes:
o
o
o
PMEI programme (FPCR 2000, FCIR, FFT3 and FPMEI),
FSI France Investissement programme (FFIA, FFIB and FFI 2),
FSI France Investissement 2020 programme (FFFI 3).
The fund of funds business line is also in charge of asset management on behalf of third parties such as the FNA
(PIA) that was not subscribed by Bpifrance.

SME Own Funds, this business line is in charge of the management of the following funds:
o
o
o
France Investissement Croissance,
Sector-specific funds,
France Investissement Croissance Régions.

Innovation, the innovation teams are in charge of managing the Large Venture activity as well as the funds
subscribed by Bpifrance such as the Bioam and Innobio funds, and the funds raised as part of the IFP (FSN PME
Ambition Numérique, Fonds Ecotechnologies and Fonds Biothérapies Innovantes et Maladies Rares hereinafter
(“FBMIR”)).

ETI / GE (Mid-Caps and Large Companies) Own Funds is the fourth business line of the “investment” division
that was distinguished at the time of the creation of Bpifrance; its portfolios are subscribed by Bpifrance
Participations. This division’s teams look after the management:
o
o
o

of the strategic equity interests in large companies (e.g.: Orange)
of the equity interests in mid-tier companies acquired via the ETI 2020 fund.
of the sector-specific funds in charge of providing support to equipment makers in the automobile sector,
on ranks 1 and 2 (FMEA and FMEA rank 2).
Intervention means of the Investment division’s various business lines
The Bpifrance group’s investments are carried out either directly by Bpifrance Participations (former FSI), or through
funds, for which the intervention provisions differ according to the business lines.
In general, the investments of the ETI / GE own funds business line are carried out by the Bpifrance Participations
teams, involving the Bpifrance Participations balance sheet. In keeping with the set-up of a new organisation (in the
first half of 2014), the investments in mid-tier companies will be carried out through the ETI 2020 fund, the actual
st
creation of which will occur in the 1 quarter of 2014.
The SME Own funds and Funds of funds business lines primarily invest through funds. These fund are mostly
financed via an intermediate holding company (FSI PME Portefeuille entirely held by Bpifrance Participations) and
managed by investment companies from the Bpifrance group (Bpifrance Investissement and Bpifrance
Investissement Régions, which will be absorbed by Bpifrance Investissement on 31 March 2014).
The Innovation business line carries out its investments either through funds managed by Bpifrance Investissement or
directly, within the Bpifrance Participations balance sheet (Larger Venture Innovation activity).
|
3.3.3. The activity by division and key figures
In a still tense economic context, the Bpifrance group mobilised all of its various financial tools in order to play its role
as an actor in the marketplace and to ensure, through its “investment” and “financing” divisions, a contra-cyclical role
of financing the economy and impacting on the market’s imperfections.
3.3.3.1. “Financing” division
The activity of the BPI-Groupe “financing” in 2013 is presented below around this division’s three business lines, while
also considering its international activity.
Innovation activity
Subsidies / advances / loans distribution:
(in millions of €)
2012
2013
Individual Aids
395
364
. Grants
90
85
Including partners
42%
42%
. Repayable Advances
123
127
Including partners
24%
26%
. Zero Interest-rate Loans
182
152
Development Loans
18
113
. Seeding Loans
18
19
. Pre-financing of the CIR (Research Tax Credits)
36
. Innovation Loans
58
Financing collaborative projects
349
270
. Single Inter-Ministerial Fund (FUI) (grants)
122
104
. Strategic Industrial Innovation (ISI)
109
92
including grants
41%
29%
including repayable advances
59%
71%
82
54
including grants
56%
46%
including repayable advances
44%
54%
36
20
. R&D Structuring Projects for Competitiveness (PSPC)
. FSI (grants)
Distribution of the beneficiary companies by major sectors (excluding ISI):
2013
Industry
Life sciences
ICT
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 €767 million (-2% relative to 2012), 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).
A new loan, the Prêt à l’Innovation (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 action
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 the 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 the guaranteed loans by business sector (excluding Recovery plan mechanism):
Industry
Construction
Trade – Transportation
Services for companies
Services for persons
Tourism
2013
25.4%
9.2%
27.9%
10.9%
15.2%
11.4%
The guarantee activity increased by 5% relative 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 has been 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.
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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 assistance including only PCE by business sector:
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 relative 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 unheard-of activity volume of €3.7 billion (+6%), with a strong
increase in the Energy-Environment domain, thereby confirming Bpifrance’s contra-cyclical market role.
Development Loans increased by 13% to nearly €1.4 billion of commitments, thanks to the momentum of the Growth
Loan (known as “CDP”; €791 million) and despite the discontinuation of the Green Loan, and to the relays with the
international side (Export Loan) as well as, to a lesser degree, in terms of innovation (Innovation Loan, launched at
the start of the year, or Pre-financing of the CIR). The only downturn in this table, where all of the products are higher,
is the PCE that continues to drop by close to 10% each year, despite the very good Creation momentum.
In 2013, short-term financing via the mobilisation of receivables experienced double-digit growth (+10.2%), an
indication of both the conquest 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 €795 million of agreements for the benefit of more than 12,000 companies, 60% of which are
VSEs.
International Focus
2013 was the year in which the public authorities ratified the international actions of Bpifrance.
At this time, on 22 May 2013, the Bpifrance Export label was created. This label takes in all of the public support
mechanisms targeting exports and the internationalization of companies, distributed 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 case officers, are
contributing their respective skills in the areas of international accompaniment and insurance for export contracts and
actions. Their integration within the regional teams was remarkable.
The initial results to 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 fields, particularly
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.
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3.3.3.2. “Investment” division
The activity of the Bpifrance “Investment” division is presented below, in two parts. First of all as part of a summary
analysis (I) that brings to light the major features of the activities of the “Investment” division in 2013, then as part of a
detailed analysis (II) of the assets and portfolio under management in 2013 and of their evolution during the fiscal
year, relative to each business line.
I.
Summary analysis – Main variables
a) “ETI / GE own funds” business line
Intermediate-sized companies offer many strengths: agility when faced with cyclical fluctuations, ability to innovate,
level of internationalisation, strong contribution to greater employment, strong regional anchoring. However, these
companies are not very numerous in France, and smaller than is the case with our neighbours: as such, there are 3
times more of them in Germany and twice as many in the United Kingdom.
In this context of the attrition of private initiative, the Bpifrance group wishes to mobilise its resources, in the service of
both current and future mid-tier companies, in order to release this reservoir of growth for the French economy.
In 2013, the Bpifrance group initiated measures in response to 3 major stakes:
•
•
•
increasing the strategic weight of mid-tier companies within the French economy by preparing a mapping and
segmentation that will bring to light the specific features and growth challenges of this group,
identifying the strengths and roadblocks for the growth of mid-tier companies, while relying on the Bpifrance
group’s grassroots network,
contributing to the continuum of the Bpifrance group’s overall offer, by accompanying mid-tier companies
throughout their growth trajectories.
In 2013, the activity of the ETI / GE own funds business line continued at a similar pace as in 2012 (€366.5 million
subscribed versus €358.9 million the previous year, excluding exceptional operations and excluding FMEA). This
activity evenly involved new investments (subscriptions of €192 million) and support for existing equity interests (€175
million). The relatively significant number of reinvestments, i.e. 11 out of 16 operations, is therefore indicative of the
Bpifrance group’s positioning as a patient investor that accompanies projects over time, and at various key moments.
In 2013, the ETI / GE own funds business line continued the dynamic management of its portfolio with 12 disposals,
double the 2012 figure.
b) “SME own funds” business line
Bpifrance acquires minority interests in companies, from the seed-stage through their transfer / buy-out, in order to
provide them with means for their growth. It intervenes indirectly in SMEs.
Despite a difficult market, the investment in the own funds of SMEs activity resisted well in 2013: 91 operations were
carried out during the fiscal year for €121 million invested. In particular, we note that:
•
•
65% of the operations were carried out in the regions, an indication of the strong territorial anchoring of the
Bpifrance action.
The management of the portfolio, consisting of 409 companies, also mobilised the teams and notably led to 43
disposals in 2013.
2013 was also marked by the set-up of 3 thematic funds:
•
•
•
Fonds pour le Savoir Faire d’Excellence (FSFE - Excellence Know-How Fund): the fund, with €20 million of
allocations, is intended to accompany craft and industrial companies in possession of rare know-how as a result of
their manufacturing experience;
Croissance Rail (Rail Growth): the fund has an allocation of €40 million. It is co-financed by Alstom, Bombardier,
SNCF, RATP and Bpifrance;
Fonds de Développement des Entreprises Nucléaires (FDEN – Nuclear Companies Development Fund): the
fund has a target allocation of €133 million. It is co-financed by EDF, Areva, Alstom, Eiffage, Vinci and Bpifrance.
In a context of a considerable French growth capital sector, the activity of the SME own funds business line once
again demonstrated a certain degree of resiliency, thereby indicating the contra-cyclical role played by Bpifrance.
c) “Innovation” business line
In terms of innovation, 2013 was characterized by strong momentum. The direct innovation capital activity led to
subscriptions of €111 million for 35 operations, i.e. 54% growth relative to 2012.
This growth was particularly carried by the momentum in the digital field (FSN PME Ambition Numérique) and by the
proactive actions of the Large Venture pocket set up in 2013 by Bpifrance. As such, Large Venture works with
companies having a major capital need in order to accelerate their commercial developments, international
deployment or the industrialization of their technology. The invested amounts are most often greater than the turnover
of the companies in question, thereby demonstrating the venture capital dimension of the Large Venture activity and
its purpose of encouraging the emergence of French champions, future worldwide leaders in their markets. Endowed
with €500 million, Large Venture takes part in operations beginning at €10 million, and in the vast majority of cases as
a co-investment with private partners.
The business line actions of Bpifrance are accompanied by an innovation action plan called Nova (cf. above, page
14).
d) “Fund of funds” business lines
Bpifrance acquires minority interests in companies, from the seed-stage through to their transfer / buy-out, in order to
provide them with means for their growth. It intervenes indirectly, notably through the company FSI PME Portefeuille,
in more than 270 national or regional private funds.
In 2013, Bpifrance continued its funds of funds action within a recurring context of increasing scarcity of private
subscriptions within the growth capital segment intended for SMEs considered to be “growing”.
The level of subscriptions carried out in partner funds (funds of funds activity) was high in 2013; €444 million were
invested in 41 investment vehicles, including 15 regional vehicles that work as closely with the territories as
possible.
This amount will gradually filter through the economy, in keeping with the calls for funds initiated by the partner
funds of Bpifrance.
Bpifrance is committed to the economic fabric at each stage in the development of growing French companies. As
such, seed-stage capital, venture capital and growth capital each represented 1/3 of the amounts subscribed in funds
of funds in 2013. Within this framework, we note a strong recovery of subscriptions in venture capital funds, with
€143.5 million subscribed (cf. below) in 2013 versus €65 million in 2012.
After seeing strong growth until 2011, to €2.9 billion (source: AFIC), the growth capital market dropped by 34% in
2012, a trend that was confirmed in 2013. This decline affects all categories of companies, including ones with
turnover of less than €5 million. Faced with this very noticeable negative growth of the offer, the potential demand
remains high and legitimizes the efforts of Bpifrance with SMEs:



The transfer / buy-out of SMEs is an economic and societal issue at a time when the average age of directors is
increasing, and when many such operations fail entirely,
French SMEs are suffering from a recurring shortfall of own funds; the net indebtedness of 1/4 of them is in
excess of 150% of their own funds,
SMEs must invest in order to restore their margins: ones that have opened up their capital have double the
margins of companies that have not.
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II.
Detailed Analysis
a) Assets under management
Assets managed (in €M)
Funds of funds direct equity interests
FSI PME Portefeuille
Averroes Finance holding
FPMEI
FCPR 2000
FFT3
FCIR
FFI A
FFI B
FFI II
FFFI III
FCPR
EIB funds
NPF
FFI3+
Averroes Finance 1
Averroes Finance 2
ETI GE direct equity interests
FMEA
FMEA rank 2
FCID
FCID 2
OC+ A
SME direct equity interests (former CDC Elan)
AEI
AE1
AT
AED C4
AEM
OC+B
FSI REGIONS 1
FSI REGIONS MEZZANINE
FCJE
Fonds stratégique Bois (Wood strategic fund)
Patrimoine and Création
Patrimoine and Création 2
Mode et Finance (Fashion and Finance)
FSFE
Croissance Rail (Rail Growth)
FDEN
Innovation risk capital direct equity interests
FCPR bioam
Bioam 1 Bis Compartiment 1
Bioam 1 Bis Compartiment 2
Innobio
Ecotechnologies fund
FSN PME
FBIMR
Total
127,2
138,7
0,1
920,5
95,0
150,0
70,0
330,0
229,8
638,8
1 560,6
91,5
45,7
579,8
50,3
6,9
30,0
11 861,6
575,0
50,0
180,1
180,0
220,0
37,5
3,0
38,9
11,1
140,0
60,2
290,0
200,0
200,0
90,0
20,0
40,2
45,0
7,0
20,0
40,0
25,0
144,1
44,2
7,0
5,0
139,0
150,0
100,0
50,0
20 038,8
ETI GE own funds
11 861,6
575,0
50,0
12 486,6
To the end of December 2013
Funds of funds SME own funds
127,2
138,7
0,1
920,5
95,0
150,0
70,0
330,0
229,8
638,8
1 560,6
91,5
45,7
579,8
50,3
6,9
30,0
180,1
180,0
220,0
37,5
3,0
38,9
11,1
140,0
60,2
290,0
200,0
200,0
90,0
20,0
40,2
45,0
7,0
20,0
40,0
25,0
5 064,9
1 848,0
Innovation
144,1
44,2
7,0
5,0
139,0
150,0
100,0
50,0
639,3
Total
48,7
133,9
0,1
920,5
95,0
150,0
70,0
330,0
229,8
638,8
1 800,0
91,5
45,7
599,8
11,1
30,0
12 692,2
575,0
50,0
180,1
180,0
220,0
42,2
3,7
38,9
15,0
140,0
60,2
290,0
100,0
100,0
90,0
20,0
40,2
45,1
4,9
98,2
44,2
7,0
5,0
139,0
150,0
100,0
20 625,8
ETI GE own funds
12 692,2
575,0
50,0
13 317,2
To the end of December 2012
Funds of funds
SME own funds
48,7
133,9
0,1
920,5
95,0
150,0
70,0
330,0
229,8
638,8
1 800,0
91,5
45,7
599,8
11,1
30,0
180,1
180,0
220,0
42,2
3,7
38,9
15,0
140,0
60,2
290,0
100,0
100,0
90,0
20,0
40,2
45,1
4,9
5 194,9
1 570,3
Innovation
98,2
44,2
7,0
5,0
139,0
150,0
100,0
543,4
At the end of 2013, the assets under management were equal to more than €20 billion, consisting of the following:




ETI / GE own funds, €12.5 billion,
Funds of funds, €5.1 billion,
SME own funds, €1.8 billion,
Innovation, €0.6 billion.
For direct equity interests, the presented data correspond with the valuation (IFRS) used at the closing of each fiscal
year. For the funds, this refers to the size of the funds (total subscriptions), restated for the subscriptions carried out in
the managed direct funds.
b) Evolution of the portfolio under management
Activity of Bpifrance Investissement division from 2012 to
2013 in M€
1 776
1 616
1 353
1 186
1 044
912
845
519
Authorizations
Commitments
Cash out
2013
Disposals**
2012
In 2013, the Bpifrance “Investment” division authorised €912 million of investments distributed as shown below:




€405 million for the funds of funds,
€224 million for the ETIGE own funds,
€106 million for Innovation,
€176 million for the SME own funds.
The subscriptions relative to 2013 were equal to approximately €1.04 billion, consisting of the following:




€444 million for the funds of funds,
€367 million for the ETIGE own funds,
€111 million for Innovation,
€122 million for the SME own funds.
In 2013, the Bpifrance “Investment” division carried out disposals for €1,186 million, including €417 million of net
capital gains. The disposal proceeds more than doubled relative to 2012. This change was driven by the ETI / GE
own funds division that carried out twice as many disposals in 2013 as in 2012.
|
Activity of Bpifrance Investissement from 2012 to 2013 by business lines
in M€
400
1 152
1 001
111
82
248
228
1 152
367
444
390
2
108
111
106
122
176
Fonds
de fonds
PME
162
367
122
405
36
73
1
161
479
224
Innovation
75
74
136
517
Innovation
ETI/GE*
222
ETI/GE *
Fonds
de fonds
PME
2013
2012
Authorizations
Commitments
Cash out
Disposals**
c) Evolution by business line

Fund of funds
Authorisations of commitments and subscriptions in 2013:
Authorizations and commitments on Funds of funds portfolio
(in M€)
479
444
405
390
130,0
27,0
144,5
137,8
378,5
349,0
299,4
251,7
Authorizations
Commitments
2013
PIA program
Authorizations
Commitments
2012
Bpifrance assets
In 2013, €405.5 million in commitments were authorised, including €378.5 million in affiliated funds (including
international) that will be subscribed by Bpifrance. The balance corresponds to the commitments authorised for the
funds managed on behalf of third parties (National Seeding Fund (FNA) in connection with the “Investing in the Future
Programme” (PIA)). These authorisations break down as follows:





Seed-stage, €27 million authorised (via the FNA) versus €137.3 million in 2012 (including €130 million via the
PIA excluding FBMIR),
Venture capital, €38.3 million authorised versus €164.5 million in 2012,
Growth capital, €248.2 million authorised versus €126.5 million in 2012,
Generalist, €82 million authorised versus €50.7 million in 2012,
Mezzanine, €10 million authorised in 2013.
2012 was marked by a concentration of the investment projects on the seed and venture capital funds (nearly €327
million authorised). In 2013, however, there was a greater concentration of investment projects in the growth
capital funds, with more than 60% of the authorisations (versus 26% in 2012).
Commitments on Funds of funds portfolio from 2012 to 2013
(in M€)
3200
133,5
New commitments
3000
243,3
Reinvestments
14,8
17,4
11,1
3142,1
0,0
2800
2698,2
0,7
2,1
0,0
0,0
0,0
FPMEI
FPCR 2000 / FFT 3
/ FCIR
FFI A / FFI B
18,5
2,6
2600
2400
2200
2000
Commitments
as of 31/12/2012
FFI II
FFFI III
Autres*
FNA
Commitments
as of 31/12/2013
The new subscriptions in 2013 were primarily carried out by the funds during investment periods, namely the FFFI 3
(that succeeded the FFI 2 fund) (€243.3 million) and the FNA (€133.5 million) funds. It should nevertheless be noted
that the FFI 2 carried out 3 new subscriptions in 2013 (€18.5 million), for which the commitments had previously been
authorised. The total subscriptions for the funds of funds business line in 2013 (including international funds)
amounted to €444 million versus €390 million in 2012.
Change of the gross value of the funds of funds portfolio as on 31.12.2013
The following charts present the evolution of the gross value of the funds of funds portfolio as on 31.12.2013. This
illustrates the evolution of the stock of investments in the affiliated funds, with the outstandings relative to the
managed direct funds having been restated.
|
Evolution of the gross value of the funds of funds portfolio from 2012 to 2013
(in M€)
1 339
1 350
-
Cash out
21,0
-11,9
26,3
Amortization
1 300
-26,8
26,4
78,3
1 250
-16,0
1 199
63,5
10,5
1 200
-36,1
22,5
-16,7
1 150
1 100
1 050
1 000
GV as of 31/12/2012
FPMEI
FPCR 2000 / FFT 3 / FCIR
FFI A / FFI B
FFI II
FFFI III
Autres*
FNA
GV as of 31/12/2013
The portfolio calls carried out in 2013 were equal to €248 million and the portfolio distributions amounted to €111
million for an amortisation of €107.7 million. The gross value of the portfolio of the funds of funds division
(including international funds) was equal to €1.34 billion.
The evolution of the gross value of the funds of funds portfolio presents the outstandings (calls / amortisations)
restated for the direct fund flows. For example, the calls and amortisations of the FFI B fund were restated for the
flows relative to the AEM and FCID funds. Relative to the FPCR 2000, FCIR and FFT 3 funds, the chart presents all
of the activities of these funds that are only partly held by FSI PME Portefeuille (respectively 33.33%, 57.1% and
33.33%).
The portfolio calls remain concentrated on the funds that are no longer in their investment period, for which the level
of total calls is still relatively low (FFT 3, FFI II), and on the funds in their investment period for which the activity is
ramping up (FNA and FFFI 3).
The portfolio distributions also remain concentrated on the funds in the PME Innovation programme (FPCR 2000, FFT
3, FCIR and FPMEI), that account for nearly half of the year’s distributions (amortisations of fund units).
Other Funds were also distributed, including FFI A (€15 million), FFI 2 (€26.8 million related to the disposal of the
equity interest in ADS by the FCDE) and the private and international funds of funds (€9 million).
Few affiliated funds exited from the funds of funds portfolio in 2013, with the completed operations involving the
following portfolio of funds:

FPMEI,
o
o
FEMERTEC 1 for which the liquidation generated a capital loss of €2 million,
DEMAIN TV that generated a capital loss of €1,7 million.
It should be noted that the FPMEI also received several distributions from its underlyings funds, resulting in a capital
gain of €1.2 million.

Public funds / EIB,
o
o
MATIGNON TECHNOLOGIES resulting in a capital gain of €0.1 million,
GALILEO 2 and GALILEO 2 Bis resulting in capital losses of €0.1 million.
It should be noted that these two funds also received several distributions from underlyings funds (SEEFT
VENTURES, TECHFUND CAPITAL EUROPE), resulting in a capital gain of €2.9 million.

SME own funds
The following chart presents the evolution of the gross value of the portfolio of the SME direct funds as on 31.12.2013
and managed by Bpifrance Investissement, the Bpifrance group management company. These funds are indirectly
subscribed by FSI PME Portefeuille via the funds of funds (FPMEI, FFIB, FFI 2, FFFI 3…).
800
Evolution of the gross value of the SME own funds portfolio from
2012 to 2013
(in M€)
Cash out
740,0
Amortization
750
-28,9
700
675,6
50,4
8,6
-11,3
-
-17,0
650
600
550
500
GV as of
31/12/2012
Generalist
Sectorial
Regional
GV as of
31/12/2013
The investments carried out in 2013 were equal to €122 million and the portfolio disposals (gross value exits)
amounted to nearly €57.1 million. The gross value of the SME own funds division’s portfolio therefore stands at nearly
€740 million at the end of 2013.
The calls are down relative to 2012 (€161.7 million) and are primarily concentrated within the sub-divisions:


Generalist, the FCID reduced its reinvestments. It also carried out fewer investments while the average ticket
increased, coming in at €7.1 million (+1.7 million), with OC +A carrying out no new investments in 2013,
Regional, the OC+B fund invested appreciably less in 2013 and the average ticket of the new investments
fell by €0.8 million (for a decline of -€0.4 million). It should be noted that the AED C4 and AEM funds
completed their investment periods in 2012, which in 2013 resulted in a reduction of new investments that
was not offset by the FSI Régions 1 and FSI Régions Mezzanine funds.
The portfolio distributions increased relative to 2012 (€42.6 million). They were concentrated on the Generalist (FCID)
and Regional (AED fund) sub-divisions.
|
Innovation

The following chart presents the evolution of the gross value of the portfolio of funds managed by the Bpifrance
Investissement Innovation business line teams.
Evolution of the gross value of the Innovation portfolio from 2012 to 2013
(in M€)
Cash out
350,0
52,9
331,4
Amortizations
300,0
26,2
19,0
250,0
224,1
0,6
7,7
-0,9
1,7
-
-
- 0,9
-
200,0
150,0
100,0
50,0
GV
Fonds BIOAM
as of 31/12/2012
INNOBIO
FSN PME
ECOTECHNOLOGIES
FBIMR
LARGE VENTURE
GV
as of 31/12/2013
The subscriptions carried out in 2013 by the Innovation business line amounted to €111 million, of which €108 million
were paid up.
Nearly half of the investments (€52.9 million ) were carried out via the Large Venture activity. This activity’s ramp-up
should be confirmed in 2014 and in the subsequent years.
Innobio’s investments were comparable to the ones in 2012, i.e. €19 million in 2013, thereby confirming its
accompaniment policy for its equity interests with nearly €13 million of reinvestments carried out in 8 companies.
The IFP programme funds invested €35.6 million in 2013 versus nearly €27 million in 2012:



The FSN PME Ambition Numérique fund carried out 11 investments in 2013, including 5 reinvestments pour
€4.7 million. It is interesting to note that the fund carried out fewer new investments relative to 2012 (-3) but
that at the same time, the average ticket increased from €1.9 million to €3.6 million,
In 2013, the investments carried out by the Ecotechnologies fund were stable at €9.3 million in 3 companies,
with an average ticket that was also stable,
The FBMIR made its first investment with a subscription of €3 million (out of an authorised commitment of €4
million), of which €1.7 million were called by the end of 2013.

ETI / GE own funds
To the end of 2013, 16 firm investment / reinvestment commitments were authorised for €223 million in midtier and large companies (ETI / GE) versus 14 firm investment commitments to the end of December 2012, for
€475 million. The December 2012 figure included the investment in CMA-CGM and the reinvestment in Paprec that
were actually carried out in 2013, for a total of €165 million. Excluding these two commitments, the commitments
assumed in 2012 were equal to €310 million.
Authorizations and commitments - ETI / GE (without FMEA) in M€
New authorizations / Commitments
Reinvestments
72,5
1 050,4
72,5
174,2
402,8
140,2
192,3
83,1
Authorizations
Commitments
2013
Authorizations
Commitments
2012
In 2013, five new investments were carried out amongst the ETI / GE for a total of €192 million. Nine new
investments had been carried out by this same date in 2012 for €1,050 million, including the investment in Eramet for
€764 million (€286 million excluding Eramet).
The main new investments in 2013 were the following:




Naturex (€12 million): n°1 worldwide mid-tier company for speciality natural plant-based ingredients intended
for the agri-food, pharmaceutical and cosmetics industries (company development support theory),
Technicolor (€54 million): strengthening and stabilisation of the capital of this mid-tier company that is on the
cutting-edge of digital innovation, with a significant portfolio of patents,
In June 2013, investment in CMA-CGM ($150 million, i.e. €116 million): accompaniment for one of the three
worldwide leaders in maritime transport,
In December 2013, investment in Talend for €10.5 million (out of a commitment of €12.4 million), a company
that produces and markets data integration software programs.
Eleven reinvestments were carried out in 2013 within mid-tier companies and LCs for €174 million (seven in
2012 for €72.5 million):




Windhurst Industries and Clestra, TDF and four operations with listed companies for a total of €23 million,
Constellium (€52 million): this large company, one of the worldwide leaders in aluminium, had its IPO in May
2013. The reinvestment carried out at this time, that served to increase the equity interest to 12.5% of the
capital, resulted from the desire to maintain the group’s French anchoring,
Paprec for nearly €49 million in September 2013, on a commitment assumed in 2012 as indicated above,
Nexans for €46 million in November 2013 and participation in the Alcatel capital increase for €3 million in
December.
|
In December 2013, the FMEA funds carried out a €0.6 million reinvestment in DELFINGEN INDUSTRY(worldwide
automotive equipment manufacturer for protection systems, fluid transfer systems and assembly services). Let us
recall that in 2012, nearly €42 million of commitments had been authorised in 8 companies and €29.2 million had
been subscribed in 10 companies.
Disposals and capital gains / losses
(in M€)
Gross value outflows
IFRS Capital gains
423,1
582,9
107,0
291,0
2013
2012
To the end of December 2013, twelve mid-tier companies and LCs, mostly listed, had been the subject of
disposals for an overall inflow of €1 billion (to the end of December 2012, the disposals had involved six lines for a
total of €400 million).
The FMEA funds carried out a partial disposal in December 2013 (ELECTROPOLI GROUP) for a gross value outflow
of €6 million resulting in a capital losses in the same amount. Let us recall that in 2012, the FMEA had performed a
disposal that resulted in a capital loss of €9 million.
3.3.4. Financial data and results
The consolidated financial statements
As indicated in the appendix to the consolidated financial statements, fiscal 2013 is no longer comparable with fiscal
2012 as a result of the exit from the scope of consolidation of Bpifrance Financement (former SA OSEO) and of the
recognition, using the equity method, of the shares of the SA BPI-Groupe as part of the contribution transactions.
As on 31 December 2013, the consolidated financial statements of the EPIC BPI-Groupe include the securities of the
SA BPI-Groupe booked using the equity method and the operations that it directly manages. The balance sheet total
represents an amount of €13.7 billion versus €30.7 billion in 2012.
The earnings of the EPIC BPI-Groupe consist of the share of the earnings of Bpifrance equal to €193.4 million, the
earnings from discontinued operations for €5.2 million and from the earnings on its own operations.
The group share of net earnings is therefore equal to €193.9 million, versus €63.4 million in 2012.
The individual financial statements
The individual financial statements published by EPIC BPI-Groupe are presented in compliance with the General
Chart of Accounts. They have been restated according to a banking format in order to be integrated into the
consolidated financial statements.
This year’s earnings include an exceptional capital gain of €328 million booked at the time of the contribution
operations relative to the Bpifrance Financement securities as part of the set-up of Bpifrance in July.
The financial result of the EPIC BPI-Groupe is equal to €7.9 million and represents the compensation for the
guarantee given for the benefit of Bpifrance Financement for the issues performed by it.
For €0.7 million, the operating expenses primarily represent the recourse to external services and €0.2 million of
invoicing by Bpifrance Financement for the services provided to the EPIC BPI-Groupe that has no employees.
Finally, in 2013, the EPIC BPI-Groupe was entrusted with the set-up of two new programmes concerning future
investments known as “Programmes d’Investissement d’Avenir” (PIA) that resulted, thanks to a capital endowment
from the State, in a matching contribution from two guarantee funds for a total amount of €12 million for the benefit of
Bpifrance Financement. As such, an exceptional charge was booked.
The net income was equal to a profit of at €322.8 million.
After the contribution operations, the balance sheet of the EPIC BPI-Groupe – now a 50% shareholder of Bpifrance –
shows an increase equal to €13.3 billion, versus €3.9 billion in 2012. The off-balance sheet commitments consist
primarily of guarantees given for the amount of €15.7 billion to 31 December 2013. This €4.5 billion increase can
notably be explained by the new issue programmes carried out by Bpifrance Financement and guaranteed by the
EPIC BPI-Groupe.
On the asset side, the equity interest of the EPIC BPI-Groupe in Bpifrance is recorded in the amount of €10.5 billion,
financed on the liabilities side by the increase of the issued capital. Finally, thanks to the new IFP programmes and
the payments from the State, the EPIC BPI-Groupe has €0.97 billion with which to finance its subsidiary’s general
economic interest missions, primarily as part of the Investments for the Future Programme. These resources are
primarily deposited on account with the State.
|
3.3.5. Outlook for 2014
3.3.5.1. The 2014-2017 Strategic Plan
After preparatory work undertaken in the summer of 2013, involving tens of employees as well as shareholders, the
State and the Caisse des Dépôts et Consignations, the board of directors approved, during its meeting on 20
December 2013, the Bpifrance strategic plan for the 2014-2017 period.
This plan presents the development axes and strategic objectives for which Bpifrance is ramping up its capacity in
order to reach them by 2017, without prejudging the fact of obtaining associated budgetary means. It therefore plans
to accompany the expected recovery of investment by French companies and the mobilisation of French actors in the
service of this key factor for growth and the competitiveness of the economy.
This ambition is based on 3 strategic axes:
a)
The first task is to support the growth of the companies in order to allow them to develop, by:


b)
providing financing solutions that are complementary to the ones from the classical banking market,
encouraging the opening of company capital and the mobilisation of equity investors.
It is also a priority for Bpifrance to prepare for the competitiveness of tomorrow by contributing to the
resolution of the economy’s more structural difficulties, while paying special attention to innovation and to the
sectors of the future, by:





c)
increasing the number and the size of mid-tier companies,
encouraging innovation,
supporting the energy and environmental transition,
accompanying and supporting the sectors of the future, as well as the social and interdependent economy,
providing companies with the resources for their international development.
Finally, Bpifrance promotes company spirit and contributes to the development of an ecosystem favourable to
entrepreneurial efforts, in sync with the other economic development actors, first and foremost the Regions,
by:



accompanying companies during all the steps of their growth,
strengthening the partnerships with the Regions in favour of companies,
becoming the reference public actor for the responsible financing of companies.
3.3.5.2. 2014 prospects
As the first year of the implementation of the strategic plan adopted in late 2013, 2014 will be marked by significant
growth of the activity, in order to accompany the economic recovery, with a development of all interventions involving
financing and own funds investments, with a particular focus on the Development Loans, Cash Products, Innovation
and Growth Capital within SMEs and mid-tier companies.
The growth of the Development Loans will be one of the major axes for strengthening the financing activity in the
coming years. After an excellent performance in 2013, the short-term financing products, and notably the prefinancing of the CICE, will once again grow appreciably in 2014.
In 2014, the guarantee activity for the classical funds and regional funds should also increase.
In the wake of the Nova plan and of the guidelines set in November 2013 by the public authorities, the innovation
financing activity should see a clear rebound in 2014.
2014 will also be marked by the continuing development of the international financing and support for companies.
With regard to the prospects of the “investment” division for 2014, in a context of an expected recovery of economic
activities, Bpifrance is readying itself to work with SMEs, mid-tier companies and large companies that might wish to
finance their development by strengthening their own funds, both through direct investments and via partner funds.
For 2014, the prospects of the “investment” division’s various business lines are the following:
-
For the “funds of funds” business line, subscriptions should increase in 2014 notably via the FFFI 3 fund that
remains in its investment period until the end of 2015 and the FNA for which the investment period will end in mid2015 (barring two possible annual extensions), with the understanding that an annual envelope of €30 million will
also be released as of 2014 (over 5 years) in order to invest in private funds of funds.
Distributions should accelerate in 2014 under the impetus of the funds issued as part of the PMEI programme
(primarily the FPMEI) and the intensification of the distributions of the funds from the FSI France Investissement
(primarily the FFI A and private funds of funds).
-
The activity of the SME Own Funds business line should intensify with i) the raising of new sector-specific funds
(in particular the Fonds Stratégique Bois 2 and Mode et Finance 2), ii) the ramp-up of the sector-specific funds
raised in 2013 (FSFE, Croissance Rail and FDEN), iii) the raising of the OC+A successor fund, iv) the
confirmation of the investment effort of the FCID 2, for which the investment period should come to an end in late
2014 (unless extended) and, finally, v) the intensification of regional investments with the €100 million size
increase carried out in 2013 for the FSI Régions 1 and FSI Régions Mezzanine funds and the raising of the AEM
successor fund.
-
For the “Innovation” business line, 2014 should also see a ramp-up of the investments of the Large Venture
activity. The average investment of the Large Venture activity was estimated at €12/13 million.
The Innobio fund, in its investment period until 2016, should continue to support the portfolio equity interests
(reinvestments) and its investments in new equity interests. To this end, the size of this fund is scheduled to
increase in 2014.
-
For the ETI / GE own funds business line, the investment ambition in 2014 is in the area of €1 billion. The
business line’s disposals will concentrate on lines carrying significant unrealised capital gains, and that are very
liquid.
Detailed information on the 2014 prospects of the various Bpifrance business lines are provided in the annual reports
of the group’s main subsidiaries, namely Bpifrance Financement, Bpifrance Participations and Bpifrance
Investissement.
|
3.3.6. Internal control and risk management
Approved as a financial company until 12 July 2012, the EPIC BPI-Groupe was subject to all provisions relative to
internal control contained in regulation 97-02 from the Consultative Committee on Legislation and Financial
Regulation.
The establishment also produces an annual report on internal control and on risk measurement and surveillance, in
compliance with the provisions of articles 42 and 43 of regulation 97-02.
This work resulted in an exercise coordinated by the Bpifrance Financement Risk Permanent Control Department
(DCPR) and the Bpifrance Compliance – Permanent Control department.
Approved by the executive body, this report is presented to all of the governance bodies then conveyed to the
Prudential Control and Resolution Authority. It analyses the situation of the credit, financial and accounting risks as
well as of the operational risks, notably as they relate to the information systems.
Organisation and operation of the Bpifrance internal control
The Bpifrance group’s internal control mechanism revolves around a series of means, procedures, functions and
actions suited to the characteristics of the group and of each of its subsidiaries.
This system, that contributes to the control of the activities, to the efficiency of the processes and to the efficient
usage of the resources, provides for appropriate consideration of the significant risks, whether operational, financial or
compliance-related.
Its definition, implementation and monitoring are the responsibility of the directors and of the management. It notably
includes the three following functions:

A group Compliance-Permanent Control department that relies on corresponding functions within the subsidiaries:
-
the Permanent Control - Risks Department (DCPR) for Bpifrance Financement,
the function of Compliance and Internal Control Manager (RCCI) for Bpifrance Investissement.
This organisation also includes permanent control units present in several operational departments.
The compliance system refers to all of the procedures, systems and controls implemented by the
establishment 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 the group
is exposed.
It corresponds with the systems described by the Monetary and Financial Code, the CCRLF regulation 97-02
and the AMF General Regulation.

A Risks department for the Group, coordinated by the Risk Consolidation Department (DCR).
The Group 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 or its subsidiaries.

A periodic control system, provided by the Bpifrance General Inspection and Audit (GIA) department, covers all of
the activities and companies in the Bpifrance group.
The role of the GIA is to verify the quality and correct operation of the compliance, permanent control and risk
management systems. It neither defines nor manages these systems, but contributes to improving them through
the recommendations that it formulates.

The Bpifrance group internal control system is governed by the Compliance - permanent control charter, the Audit
charter and the DCR Intervention doctrine.
Completed by their application procedures, these three documents generally describe the components and
objectives of each of the three business lines.
They were validated by the General Manager, presented to the audit committee of the companies in question,
then disseminated within the group.

The bodies involved in internal control are the Bpifrance Audit Committee, as well as two specific committees: the
Group Risk Committee and the Group Internal Control Committee.
The Bpifrance group Compliance – Permanent Control department
This department’s perimeter simultaneously includes:
-
-
the verification of the commitments and business line risks: it ensures compliance with the regulations,
general standards as well as the standards specific to the Bpifrance business lines (financing, guarantee,
innovation and investment),
compliance, that notably measures the risk resulting from the products and any new legal actions, and gives
its opinion on their compliance,
operational risks and the associated risk control systems,
ethics, which is in charge of defining the group’s principles and standards, then verifying the compliance with
them,
the follow-up of the essential outsourced services,
the anti-money laundering and terrorist financing (AMLTF) efforts.
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 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 (commitment – scheduling – posting – payment
– 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 function.
To ensure their independence relative to the operational business lines and to the periodic control, the group
department manager and the managers in charge of compliance – permanent control at Bpifrance
Financement and Bpifrance Investissement respectively report to the General Manager of the SA Bpifrance
and to the Chairman and Chief Executive of both subsidiaries.
When a department’s size or the level of its risks do not justify the creation of a full time permanent controller
position, a “Permanent Control” correspondent will be appointed. This person serves as a relay with the
group Compliance - Permanent Control department (or its representatives within the subsidiaries, the DCPR
and the RCCI), and can carry out verifications if necessary.
The manager of the group Compliance - Permanent Control department coordinates the activity of the
subsidiaries, to ensure consistency and efficiency.
The Charter and permanent control procedures
The Charter of the Bpifrance Compliance - Permanent Control department lists this business line’s characteristic
principles, objectives and methodologies.
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.
It is validated by the group Internal Control Committee then implemented by the Compliance – Permanent control
department and the managers of the DCPR and RCCI, for the relevant subsidiaries.
|
An IT tool is available in order to ensure the follow-up of the implementation of the recommendations issued by the
Bpifrance departments in question, and to produce reports.
The annual summary on changes to the system
A report on internal control, risk measurement and monitoring is prepared during each fiscal year, as required by the
regulations. The General Management submits it for the approval of the various supervisory organs, after which it is
sent to the Prudential Control and Resolution Authority.
The report traces the main changes to the internal control system, whether with regard to financial risks (credit,
market, exchange...), risks relating to the preparation of financial statements or operational risks (including relative to
the security of information systems).
The Anti-Money Laundering and Terrorist Financing (AMLTF) system is also described therein. In this domain,
training and awareness-raising actions for all employees were carried out using an “e-learning” process.
The implemented system is regularly audited and updated in order to take into account any changes resulting from
the national and European directives, for all of the group’s business lines.
In 2013, the verifications by the Compliance – Permanent control department related to all of the group’s activities, in
the network departments and in the head office 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…
Their objectives included ensuring the implementation of the recommendations issued by the department, and the
recommendations provided by the General Inspection and Audit department.
Risks department
BPI-Groupe SA (Bpifrance) is required to comply with the general principles applicable to financial companies (cf.
articles 2 and 17 of regulation 97-02) regarding the management of risks from the viewpoint of their measurement,
monitoring and control on a consolidated basis.
The notable outcome of this is that the prudential supervision will be carried out on the basis of the BPI-Groupe SA
consolidated financial statements. To the extent that there is no supervision exemption on an individual basis, the
supervision will continue to be carried out directly on the level of Bpifrance Financement.
To direct the group Risks department, Bpifrance has set up a central function that reports to the executive body: the
Risk Consolidation Department (RCD).
This department relies on the contributions or resources of the corresponding functions that are already present in the
Bpifrance subsidiaries.
Within Bpifrance, the adopted general principle is the compartmentalisation of the activities that continue to be carried
out by the separate business line subsidiaries and the consolidation of the risks of a similar nature.
Through its efforts and interventions, the RCD is intended to be:
-
an engine for proposals with regard to defining and monitoring the general risk management framework.
The intention is for the RCD to provide proposals to the Group Risk Committee on the consolidation of the risk
policies of the business lines and to thereby deduce the evolution of the limits, for validation by the executive
body.
This mission also involves ensuring the consistency of the risk policy with the Bpifrance Strategic plan, while
taking into account the oversight guidelines relative to risks as provided by the Board of Directors and the
Executive Committee.
-
central actor in the risk consolidation, notably the counterparty risk
This mission includes: (i) assessing the group’s consolidated exposure, notably to the counterparty risk, with
the use of a dedicated information system. This includes collecting all of the existing commitments for a
customer or group within the various business lines: investment, financing, guarantee and innovation; (ii)
providing the operational teams with the information that is necessary and indispensable for a correct review
of the files; (iii) setting up a watch list system together with the business lines.
-
contributor to the counter-analysis of the most significant risks
The intention is for the RCD to detect, as far upstream as possible, files considered significant that are of
interest to both investment and financing business lines, above a certain consolidated commitment threshold,
and then to draft, for the relevant committees, a Consolidated Position Report (CPR) containing the results of
this analysis on the consolidated commitments and the points to watch.
Moreover, the RCD implements an ex-post control process relative to the counterparties for which Bpifrance
has made a commitment in both business lines, above a certain threshold.
-
supervisor and coordinator of the Risks department
As part of this mission, the RCD (i) prepares the file for the Group Risk Committee (GRC), (ii) provides the
GRC Secretariat, and (iii) participates in the oversight of the Risks department, through regulatory monitoring
together with the Permanent Control department and the reflection groups on specific topics or crossfunctional projects.
Moreover, the RCD prepares the Major Risks declaration and ensures the preparation of the regulatory
reports relating to its domain by the bodies and entities in charge of doing so.
As part of its current relations, the RCD also serves as coordinator for the external bodies or regulator, with
regard to subjects relating to the dimensions of the Bpifrance consolidated risks.
Periodic Control
The operation of the General Inspection and Audit (GIA) department, in charge of the Bpifrance group periodic
control, is based on the following principles and processes:

An Audit charter describes the aims, powers, responsibilities and organisation of the GIA, as well as the general
rules applicable to the periodic control. It is completed by a procedure that defines the relations existing between
the GIA and the audited units, during a mission.

An annual and multi-year audit plan, based on the group’s organisation and the organisational chart that
describes it, plans the content and perimeter of the GIA’s mission, with the objective of covering all of the group’s
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 GIA’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.

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 the audited units, under the responsibility of their management. The
management periodically reports to the GIA, 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 GIA reports to the executive and deliberating bodies of Bpifrance and the subsidiaries 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 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 the company and Bpifrance.
Moreover, an agreement was signed with the Caisse des Dépôts et Consignations, that defined the relations
maintained between the CDC General Audit Department (DGAU) and the Bpifrance General Inspection and Audit
department.
Outlook for 2014
The 2014 permanent control plans prepared by the various functions in question (DCPR, RCCI and the permanent
control units) call for verifications within all business lines of the Compliance – Permanent control department
(innovation, guarantee, financing and investment) and the head office departments.
They will relate to the application of the procedures and compliance with the various regulations relating to these
business lines, the performance of the first level controls, the data quality, the security of the processes, the
implementation of the recommendations...
In order to have a Group Risk map that is relevant, efficient and harmonised, the operational departments will revise
the content of their mapping of the activities and risks, which will then be consolidated on the group’s behalf.
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 within several group business lines (financing
and investment).
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.
The innovation business line
By its very construction, the activity involving the granting of innovation aid and aid for industrial strategic innovation
includes one main risk: the project may fail, either totally or partially. Its risk is therefore defined as the probability level
of a total or partial failure to pay back the amount of the delivered aid, if the project does not reach its initially
envisaged technical and economic objectives.
This risk is monitored by the General Management, that updates the risk reference text by activity sector, as well as
the legal Community and national intervention thresholds.
The Regional departments implement the strategy for granting innovation aid while relying on the aid reference text
and all of the texts on the aid-related doctrine. Similarly, the Appraisal Department ensures the quality of the decisions
with regard to industrial strategic innovation.
The general diagram for the appraisal and decision process regarding innovation projects to be aided, depends on the
amount of the aid likely to be granted and on the beneficiary’s commitment to Bpifrance, based on internal ethical
rules. For the industrial strategic projects, all decisions are taken by the Executive Director of the Bpifrance Innovation
Department.
The decision considers the aid applications, the technical / economic and financial assessment reports, both internal
and external, as well as the analysis of the project risk and of the company-risk, as contained in a standardised
appraisal medium and an appraisal form.
As such, the decision-maker has all of the indicators relative to the applicant’s ability to see its project through, and to
the regulatory framework for granting aid.
The guarantee business line
The risks are monitored on several distinct levels:

Based on a proposal from the Commitment Department, the General management defines a guarantee granting
policy within the framework of the risk policy relative to operations involving the clientele. This policy is updated on
a regular basis, while notably listing the decision delegations entrusted to the regional levels.

The Decision-Aid Tool (French acronym OAD) assigns two ratings to this segment: one for the counterparty and
one for the project, which measures the investment’s impact on the counterparty. It provides for computerised
management of all of these ratings.

For files with small amounts, and while adhering to properly defined criteria and limits, delegation agreements can
be signed with partner banks under the responsibility of the Banks and Investors Management Department.

The Capital and Balance Sheet Department that looks after estimating the management of the regulatory and
economic capital, calculates and updates the commitment potential allowed by the annual allocations received
from the Public Authorities, while also taking a probability of loss into account. The commitments are determined
each year such that the risk budget determines the activity budget.

The Department also monitors the commitment and production rhythm of the overall guarantee portfolio. It
monitors the changing risk value of the guarantee portfolio in order to ensure its solvency.

Using its ALM model, it also simulates the flow of liabilities in the scenario, in order to deduce the maturities at
which assets can be invested, and it calculates the “fair value” of future bad debts.

Moreover, Bpifrance Financement also controls the activity and risks of its subsidiary Bpifrance Régions through
its representation on the subsidiary’s Board of Directors by the General Management or qualified persons.
The financing business line
Credit risk and financial risk are two major aspects of the Bpifrance activity. As such, analysis, follow-up and
measurement tools have been implemented:

Based on a proposal from the Commitments Department, the General management defines the risk policy relative
to operations with the clientele, as well as the delegations of powers granted to the network. The application of
the above is reported to the Risk Committee on a regular basis.

The Commitments Department has a “support and process” domain that is in charge of maintaining and
monitoring the Decision-Support Tool (OAD).

This OAD tool is used to rate the counterparties and projects for the entire range of products. The appraisal and
decision are based on this tool.

The Capital & Balance Sheet Department models loan portfolios in order to define the hedging level of the risks
by the relevant capital (State allocations, own funds) and it calibrates the statistical model used by the OAD.
|

The financial risks management policy is under the responsibility of the financial division. Its framework is
provided by a financial activities memorandum that is updated each year, for each risk type (liquidity, rate and
price), and by a limits policy examined and decided upon by the relevant committees (ALM Committee, Financial
Management Committee and Counterparty Risks Committee).

Regarding the Basel II system, Bpifrance Financement has decided that the ratio calculated using the standard
method is currently best-suited to the specifics of its business lines.
The investment business line
It must be recalled that this activity consists of managing and advising funds and vehicles that invest in own funds
(equities) or quasi-equity capital (bonds and equivalents) in listed or non-listed companies.
The risks resulting from the investment business line are monitored on several distinct levels:

The investment decisions, that must align with the various investment strategies of the funds and vehicles on
behalf of which the said investments are carried out, are the responsibility of the investment committee. It first
assesses each operation’s significant risks, on the basis of the prior analysis by the investment teams and the
completed due diligence reviews.

Monitoring is shared between the investment teams, the control teams and the independent valuation team, on
the investments carried by the funds and vehicles for as long as they hold these assets (irrespective of the nature
of the financial instruments that are held). This notably makes it possible to identify and manage the various risk
factors generated by the assets and to take into consideration, if relevant, their impact on the valuation of the said
assets.

Specific monitoring is being set up, provided by a risk management function, the roles and perimeter of which are
being defined in order to comply with the AIFM Directive that took effect on 22 July 2013.
The other risk domains
The verifications carried out by the Compliance - Permanent Control department and the missions undertaken by the
General Inspection and Audit department can include an analysis of the risks presented below, or more generally
relate to their control mechanisms.

The audit and permanent control missions can report on any image, reputation and ethical risks, when any are
identified.

The rules applicable to the organisation and verification of the outsourced essential services (French acronym:
PSEE) are presented in instructions that define the characteristics of the PSEE and anticipate the insertion, in the
contracts, of the clauses required by the regulations.

In terms of operational risks, and as required by regulation 97-02, the executive body has set a limit for each
entity (Bpifrance Financement and Bpifrance Régions), which is then indicated to the Audit and Risk Committee.
In 2014, for the investment activities, this limit will be enhanced such as to have a group limit that will be based on
a harmonised quantification of the operational risks within the various subsidiaries.
Within its domain, the Information Systems Security domain contributes to the control of operational risks inherent to
IT processes and to data management.
Moreover, since 2006, Bpifrance has had a Business Continuity Plan (BCP) and committees dedicated to security
steering. In view of the operations to group the various companies that were carried out in 2013, this PCA is being
reviewed (notably in order to integrate all sites currently comprising Bpifrance).
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%
Régions
100%
Bpifrance
Régions
100%
Bpifrance
Investissement
2013 Bpifrance Financement Annual Report
| 43
4. ORGANISATIONAL CHART OF BPIFRANCE
4.1. Functional organisational chart
4.2. Network Structure
|
5. CONSOLIDATED FINANCIAL STATEMENTS
Publishable consolidated balance sheet of the EPIC BPI-Groupe
ASSET (in millions of euros)
Notes 31/12/2013 31/12/2012
Cash, central banks
0,0
115,0
Financial assets at fair value through profit or loss
0,0
81,5
Derivative hedge instruments
0,0
503,9
Non-current assets available for sale
0,0
472,0
Loans and receivables due from credit institutions
6.1
1 756,6
394,7
Loans and receivables due from customers
6.2
1 029,9
16 391,8
Finance lease and equivalent operations
0,0
4 821,8
Innovation financing aids
0,0
645,4
Revaluation discrepancies of the rate-hedged portfolios
0,0
486,0
Financial assets held to maturity
0,0
5 349,3
Current and deferred tax assets
0,0
56,0
16,9
1 291,5
0,0
0,0
10 943,6
7,7
Investment property
0,0
12,3
Tangible fixed assets
0,0
80,7
Intangible fixed assets
0,0
41,4
Goodwill
0,0
4,6
13 747,0
30 755,6
Accruals and miscellaneous assets
6.4
Non-current assets held for sale
Interests in companies accounted for using the equity method
TOTAL ASSETS
6.3
Publishable consolidated balance sheet of the EPIC BPI-Groupe
LIABILITIES (in millions of euros)
Notes 31/12/2013 31/12/2012
Cash, central banks
0,0
3,0
Financial liabilities at fair value through profit or loss
0,0
5,1
0,0
593,4
Debts to lending institutions
6.5
323,7
10 672,6
Debts due to customers
6.6
1 316,0
2 153,2
Debt securities
0,0
5 572,6
0,0
412,1
Current and deferred tax liabilities
0,0
1,8
2 124,2
3 646,4
Debts related to non-current assets intended to be sold
0,0
56,0
Provisions
0,0
1 759,8
Net innovation intervention resources
0,0
951,4
67,5
2 212,7
Subordinated debts
0,0
14,7
Shareholders equity
9 915,6
2 756,5
Group share of shareholders equity
- Capital and related reserves
- Consolidated reserves
- Gains and losses directly recognised in the shareholders equity
- Earnings
9 915,6
9 083,4
380,5
257,8
193,9
1 735,4
1 350,8
310,3
10,9
63,4
Minority interests
- Reserves
- Earnings
0,0
0,0
0,0
1 021,1
982,6
38,5
TOTAL LIABILITIES
13 747,0
30 755,6
Accrued expenses and other liabilities
Public guarantee funds
6.4
6.7
|
(in millions of euros)
Publishable consolidated profit and loss statement of the EPIC BPI-Groupe
Notes
31/12/2013 31/12/2012 31/12/2012
RESTATED
Interest and related income
Interest and similar expenses
Commissions (income)
Commissions (expenses)
Net gains or losses on financial instruments at fair value through profit or loss
Net gains or losses on financial assets available for sale
Income from other activities
Expense on other activities
7.1
7.1
7.2
NET BANKING INCOME
Operating general expenses
Amortisation & depreciation allowances on tangible & intangible fixed assets
7.3
GROSS OPERATING EARNINGS
Cost of risk
OPERATING INCOME
Share of net income from companies accounted for using the equity method
Net gains or losses on other assets
Changes to the value of the goodwill
7.4
PRE-TAX EARNINGS
Corporation tax
Income net of taxes from discontinued activities or activities undergoing disposal
NET EARNINGS
Minority interests
GROUP SHARE OF NET INCOME
(*) : cf. note 1.1.2. paragraph "Comparability of the financial statements"
7.5
56,1
-48,1
0,0
0,0
0,0
0,0
0,0
-12,0
51,6
-48,5
0,0
0,0
0,0
0,0
0,0
0,0
1 502,5
-1 076,6
14,2
-0,4
1,7
4,6
120,6
-57,6
-4,0
3,1
509,0
-0,7
0,0
-0,3
-0,3
-270,8
-19,3
-4,7
2,5
218,9
0,0
0,0
-64,7
-4,7
2,5
154,2
193,4
0,0
0,0
0,0
0,0
0,0
0,7
0,0
0,0
188,7
2,5
154,9
0,0
5,2
-0,7
61,6
-53,0
0,0
193,9
63,4
101,9
0,0
0,0
38,5
193,9
63,4
63,4
Net earnings and gains and losses recognised directly in the EPIC BPI-Groupe shareholders equity
31/12/2013 31/12/2012
NET EARNINGS
193,9
101,9
Revaluation of the financial assets available for sale
0,0
-3,2
Revaluation of derivative hedge instruments
0,0
0,0
Translation differences
-21,3
0,0
Share of unrealised or deferred gains or losses on companies accounted for using the equity method
257,8
0,0
Revaluation of fixed assets
0,0
0,0
Actuarial gains and losses on defined benefit plans
0,0
0,0
Share of unrealised or deferred gains or losses on companies accounted for using the equity method
0,0
0,0
TOTAL GAINS AND LOSSES DIRECTLY RECOGNISED IN THE SHAREHOLDERS EQUITY
236,5
-3,2
NET EARNINGS AND GAINS AND LOSSES RECOGNISED DIRECTLY IN THE SHAREHOLDERS EQUITY
430,4
98,7
* Of which Group share
430,4
61,6
* Of which minority interests
0,0
37,1
Elements that could be reclassified through net profit or loss
Elements that could not be reclassified through net profit or loss
|
Situation to 31 December 2011
Change of the shareholders equity (group share)
Capital Reserves
Gains and
and
losses
related
directly
reserves
recognised in
the
shareholders
equity
985,5
244,8
12,8
2011 earnings
Earnings allocated to reserves
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
Distribution of dividends
Acquisition / disposal of treasury shares
Change in interest percentages
Avenir Entreprises & Avenir Tourisme capital reduction
EPIC BPI-Groupe capital increase
SA OSEO capital increase
2012 earnings
Earnings allocated to reserves
Capital increase
Change to the gains and losses directly recognised in the shareholders
equity
Translation differences
Entry into / exit from the perimeter
2013 earnings
Allocation
Total
0,0
1 243,1
0,0
63,2
0,0
63,2
-63,2
63,2
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
365,3
0,0
1 350,8
0,0
0,0
0,0
0,0
0,7
25,9
2,4
0,0
-26,7
310,3
-1,9
-1,1
-0,8
0,0
0,0
0,0
0,0
0,0
0,0
9,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
-1,9
-1,1
-0,8
0,0
0,7
25,9
2,4
365,3
-26,7
1 670,1
0,0
7 732,6
63,4
0,0
0,0
0,0
63,4
-63,4
0,0
63,4
0,0
7 732,6
0,0
0,0
0,0
0,0
0,0
0,0
-21,3
28,1
380,5
257,8
329,5
-71,8
0,0
-10,9
257,8
0,0
0,0
0,0
0,0
0,0
0,0
257,8
329,5
-71,8
-21,3
17,2
9 721,7
193,9
193,9
0,0
9 083,4
Variation in minority interests
Minority interests on 31 December 2011
Change to the gains and losses directly recognised in the shareholders equity
Change in interest percentages
Share of minority interests in the dividends paid
Acquisition / disposal of treasury shares
SA OSEO capital increase
Avenir Entreprises & Avenir Tourisme capital reduction
Share of earnings on 31 December 2012
Exit from the perimeter
816,6
-1,3
-0,1
-1,2
-25,7
-6,1
0,4
200,3
-1,6
38,5
1 021,1
-1 021,1
0,0
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.
|
Cash flow statement of EPIC BPI-Groupe
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
Flows from discontinued operations
Total net cash flows generated by the operational activity (A)
Flows related to financial assets and equity interests
Incidence of the perimeter change
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
Cash, central banks (assets & liabilities)
Accounts (asset and liability) and demand loans / borrowing with lending institutions
Cash and cash equivalents upon closing
Cash, central banks (assets & liabilities)
Accounts (asset and liability) and demand loans / borrowing with lending institutions
Change in net cash position
31/12/2013
188,7
0,0
0,0
9,8
-193,4
0,0
0,7
14,0
31/12/2012
154,9
19,6
0,0
-205,7
-0,7
1,0
-89,0
378,2
-168,9
-1 760,5
-195,1
154,8
1 328,5
0,0
-0,7
-473,0
-2 803,1
3 256,3
0,0
-182,1
0,0
0,0
-4,9
-187,0
453,2
0,0
2 724,8
3 178,0
0,0
-265,3
-3 256,3
-187,0
3 178,0
0,0
382,2
112,0
270,2
116,9
0,0
116,9
-265,3
103,4
7,4
-6 564,1
3 427,4
115,5
-38,9
-15,3
-3 068,0
0,0
-2 809,7
1,5
0,0
0,0
-22,9
0,0
-21,4
534,0
2 480,4
0,0
3 014,4
0,0
183,3
-2 809,7
-21,4
3 014,4
0,0
198,9
0,1
198,8
382,2
112,0
270,2
183,3
Accounting Appendix
 NOTE 1 – SIGNIFICANT EVENTS THROUGHOUT THE FISCAL YEAR AND EVENTS OCCURRING AFTER CLOSING OF ACCOUNTS
57
 NOTE 2 – APPLICABLE ACCOUNTING STANDARDS
60
 NOTE 3 – CONSOLIDATION PRINCIPLES AND METHODS
61
 NOTE 4 – SCOPE OF THE CONSOLIDATION
63
 NOTE 5 – ACCOUNTING PRINCIPLES AND VALUATION METHODS
63
 NOTE 6 – NOTES REGARDING BALANCE SHEET
66
 NOTE 7 - NOTES REGARDING PROFIT & LOSS STATEMENT
73
 NOTE 8 – RISK EXPOSURE, MANAGEMENT AND ASSESSMENT
76
 NOTE 9 – DISCLOSURE ON STAKES IN OTHER ENTITIES
77
 NOTE 10 - INFORMATION BY SECTOR
81
 NOTE 11 – FINANCING AND GUARANTEE COMMITMENTS
81
 NOTE 12 – OTHER INFORMATION
82
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
Note 1 - Significant events during the fiscal year and events after the closing
1.1. Significant events during the fiscal year
1.1.1. Establishment of Bpifrance
Legal framework
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).
During the first quarter of 2013, the EPIC BPI-Groupe and the CDC acquired equal equity interests in the entity
SNCF B2 (entity with no significant activity), that is intended to become BPI-Groupe (trade name Bpifrance) as a
result of the contribution operations carried out on 12 July 2013.
The Bpifrance group was set up at the end of the following steps:

contribution by the State to Bpifrance of its securities of FSI (renamed Bpifrance Participations) and of its
securities intended for the group’s financing activity;

contribution by the EPIC BPI-Groupe to Bpifrance of its securities of OSEO (renamed Bpifrance
Financement);

contribution by the CDC to Bpifrance of its securities of FSI, OSEO, CDCE (renamed Bpifrance
Investissement) and of a set of securities intended for the group’s investment and financing activities;

Bpifrance capital increase reserved for the CDC, for €231.5 million;

Bpifrance capital increase shared equally between the CDC and the EPIC BPI-Groupe, for €3,066 million;

contribution by Bpifrance of the securities intended for the group’s investment activity, to Bpifrance
Participations (former FSI);

Bpifrance Participations capital increase, for €2,730.8 million.
In addition, the State contributed its securities of Bpifrance to the EPIC BPI-Groupe on 21 October 2013.
After completion of all of the above operations, Bpifrance directly holds nearly 90% of the capital of Bpifrance
Financement, and all of the capital of Bpifrance Investissement (former CDCE) and of Bpifrance Participations.
As such, the EPIC BPI-Groupe and the CDC hold equal shares of the voting rights and powers within Bpifrance.
The reference shareholder of the credit institution Bpifrance Financement is henceforth Bpifrance, that has the
status of a financial company as replacement for the EPIC BPI-Groupe.
Accounting framework
Operation date
In compliance with the resolutions of the ordinary and extraordinary general meeting held on 12 July 2013, the
operations relative to the set-up of the Bpifrance group were actually completed on this date, to the extent that the
conditions precedent resulting from the contribution agreements signed on 25 June 2013 were actually lifted on
12 July 2013.
Notion of the activity
All of the operations for the set-up of Bpifrance are considered as an “activity contribution”, in compliance with the
provisions of the IFRS 3 standard relative to business combinations. Indeed, these contributions constitute an
integrated set of operations and assets intended to be managed such as to directly provide the participants with a
rate of return.
Principles used for the valuation of the contributions
Since all of the contributions relative to the set-up of Bpifrance meet the “activity” definition pursuant to the IFRS
3, Bpifrance has chosen to post them at their historical netbook values, while considering that this method is an
extension of the activity previously performed by the various contributing entities (the EPIC OSEO and the CDC).
The gaps between these historical values and the fair value of the contributions at the time of the operation are
posted within the shareholders equity.
1.1.2. Accounting impact on the EPIC BPI-Groupe from the set-up of Bpifrance
Sale of the securities of OSEO SA
For the EPIC BPI-Groupe, the operation results in a loss of control of OSEO SA. All of the disposal capital losses
were booked through profit or loss, in compliance with the IAS 28 standard “investments in associates and joint
ventures”.
The sale of the OSEO SA securities held by the EPIC BPI-Groupe falls under the IFRS 5 standard “Non-current
assets held for sale and discontinued operations”. The disposable earnings, as well as the earnings from the first
quarter of 2013 generated by OSEO SA, were therefore recorded in the item “Earnings net of taxes from
discontinued activities or activities undergoing disposal”.
Accordingly, the goodwill booked to 31 December 2012 on the OSEO SA securities held by the EPIC BPI-Groupe
was neutralized in the profit and loss statement to 31 December 2013.
Adopted consolidation method
As the EPIC BPI-Groupe has, since 12 July 2013 exercised joint control over Bpifrance along with the CDC, the
EPIC BPI-Groupe consolidates this joint venture using the equity method, in compliance with the IFRS 11
standard “Joint arrangements”.
Comparability of the financial statements
Within this context, the scope of consolidation of the EPIC BPI-Groupe changed considerably between 31
December 2012 and 31 December 2013. Indeed, on 31 December 2012, the EPIC BPI-Groupe (parent company)
included, using the full consolidation method, the former OSEO SA, a lending institution held 62.8%, whereas on
31 December 2013, the EPIC BPI-Groupe included, using the equity method, Bpifrance, a holding company that
holds the group’s operational subsidiaries (Bpifrance Financement, Bpifrance Participations and Bpifrance
Investissement).
As such, the contributions to the consolidated financial statements of the EPIC BPI-Groupe involved:
-
to 31 December 2013, the financial statements of the parent company and the use of the equity method
for the Bpifrance group. (headings of the balance sheet and profit and loss statement of associates
accounted for using the equity method);
-
to 31 December 2012, the full consolidation of the OSEO SA group (headings of the balance sheet and of
the profit and loss statement specific to the banking activity).
In compliance with the IFRS 5 standard, the profit and loss statement to 31 December 2012 was restated for the
OSEO SA group that is now present on the line “Earnings net of tax from the activities discontinued or undergoing
disposal”.
|
For the legibility of the appendices to the consolidated financial statements, the headings of the summary reports
that are no longer used in 2013 are not the subject of specific notes. The headings in question are the following:
Balance sheet :
31/12/2013
31/12/2012
Cash, central banks
0,0
115,0
0,0
81,5
0,0
503,9
0,0
472,0
0,0
4 821,8
0,0
645,4
0,0
486,0
0,0
5 349,3
0,0
56,0
Investment property
0,0
12,3
0,0
80,7
0,0
41,4
31/12/2013
31/12/2012
Central banks
0,0
3,0
0,0
5,1
0,0
593,4
Debt securities
0,0
5 572,6
0,0
412,1
0,0
1,8
Provisions
0,0
1 759,8
0,0
951,4
Subordinated debts
0,0
14,7
Profit and loss statement:
31/12/2013 31/12/2012
0,0
0,0
0,0
0,0
0,0
14,2
-0,4
1,7
4,6
120,6
Similarly, the information relative to risk exposure, management and measurement presented in 2012 as part of
the financial information relative to financial instruments (IFRS 7 standard) are limited in 2013 to the transactions
managed by the EPIC BPI-Groupe.
1.1.3. Capital endowments
In fiscal 2013, the capital of the EPIC BPI-Groupe was endowed with €7,732.6 million:

€383.3 million on 12 July 2013, as part of a State endowment intended to finance the participation of the
EPIC BPI-Groupe in the capital increase of €3,066 million of its subsidiary Bpifrance;

€20.9 million on 11 October 2013, as part of the agreement between the State and the EPIC BPI-Groupe
relative to the loans for the industrialization of research and development projects coming from the
competitiveness clusters (LICC);

€7,279.3 million on 18 October 2013, as part of the State’s contribution of the shares of the Bpifrance
company, received in exchange for its equity interests in the FSI and in SOFIRED;

€49.1 million euros on 3 December 2013, as part of the agreement between the State and the EPIC BPIGroupe relative to digital loans.
1.1.4. 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
Accounting standards applicable as of 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 had no impact.
|
-
The IFRS 13 standard relative to fair value valuation, that replaces the provisions relative to fair
value included in all other IFRS standards. This standard also requires the presentation of
additional information in the notes to the financial statements.
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 this standard had a significant impact on the level of the EPIC BPI-Groupe as a result
of the use of the equity method for the Bpifrance shares (cf. 1.1.2).
-
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 - Consolidation principles and methods
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.
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 consolidated financial statements include all of the companies that it controls or over which it has significant
influence.
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.
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 over which the company exercises joint control or notable influence are consolidated
on an equity basis.
3.3. Interests in companies accounted for using the equity method
The equity method involves replacing the value of the securities with the share the group holds within the
shareholders equity and earnings of the companies in question. The profit and loss statement reflects the group’s
share of the earnings of the earnings of the companies accounted for using the equity method.
The group applies the provisions of the IAS 39 standard in order to determine if it is necessary to record an
impairment loss. If there is an indication of impairment according to the criteria of the IAS 39 standard, the entire
equity interest that is the subject of the equitization then undergoes an impairment test according to the IAS 36
standard relative to the impairment of assets. The book value of the equitized equity interest is primarily
compared with its value in use.
The possible impairment is then recorded in the profit and loss statement under the heading “Share of the net
earnings of companies accounted for using the equity method” and allocated to the equitized equity interest,
which authorises the subsequent reversal of the impairment in case of an improvement of the value in use or
market value.
3.4. Consolidation rules
Restatements and eliminations
Restatements needed for the harmonisation of the assessment methods of the consolidated companies are
carried out when they are significant.
Intra-group dividends, provisions on consolidated securities, capital gains on internal disposal operations and
exceptional depreciation are entirely neutralized in an amount equal to 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 “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.
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.
3.5. 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°201304 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 following table identifies the consolidated companies, the percentage of their capital held directly and
indirectly, and their consolidation method.
Designation
Bpifrance group

Consolidation
method
31/12/2013
holding %
31/12/2013
% of voting
rights
Equitization
50,00%
50,00%
Note 5 - Accounting principles and valuation methods
5.1. 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
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 instruments meet classification criteria in the new level; these
criteria depend on market conditions and products. Changes due to 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.
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.
|
Loans and receivables not held for trading purposes or 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 subject
to depreciation. Interest accrued on receivables is included in the relevant receivables account with changes
recognised in the profit and loss statement.
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.
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”.
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.
5.4. 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.
5.5. 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.
5.6. 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.
The taxable income as on 31 December 2013 is -€4.7 million.
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.
5.7. Interest income and expense
In compliance with ANC recommendation n° 2013-R-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 finance lease and equivalent operations) as well as guarantee
commissions. 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.
5.8. Share of earnings of associates
Bpifrance, consolidated using the equity method, is considered as having an operational nature that is an
extension of 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.
5.9. Cash and cash equivalents
The cash and cash equivalents heading includes the cash in hand and demand deposits, the very liquid shortterm 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.
5.10. 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, …

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 is 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 “Non-current”.
6.1. Loans and receivables due from credit institutions
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
(*) : of which loan to Bpifrance Financement, settled in 2012
2013
116,9
1 621,5
0,0
0,0
18,2
1 756,6
2012
275,9
118,5
0,0
0,0
0,3
394,7
Breakdown of the Loans and receivables owed by institutions, between current and non-current elements
Current
Non-current
2013
135,1
1 621,5
2012
303,5
91,2
6.2. Loans and receivables due from customers
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
2012
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
1 029,9
15,6
933,1
7 072,2
161,7
3 157,7
-226,7
-368,4
31,3
5 615,3
1 029,9
16 391,8
Breakdown of the Loans and receivables owed by the clientele, between current and non-current elements
Current
Non-current
Total loans and receivables owed by the clientele
2013
1 029,9
0,0
1 029,9
2012
7 683,0
8 708,8
16 391,8
6.3. Interests in companies accounted for using the equity method
2013
Equitization value Of which valuation
/ acquisition
discrepancies
Bpifrance group
10 943,6
410,0
Total equity interests in companies accounted for using the
equity method
10 943,6
410,0
|
6.4. 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
0,0
0,0
0,0
0,0
0,0
0,0
147,5
7,0
6,6
0,8
43,8
205,7
Other assets
Settlement accounts for securities transactions
Guarantee margins paid on reverse repo operations
and interest rate swap contracts
Receivables with State and Innovation partners
Guarantee funds to be received
FMR allocation
Other sundry debtors
Stocks and sundry assets
Total of the other assets
2013
2012
0,0
0,7
0,0
0,0
0,0
224,2
748,2
14,4
0,0
87,4
10,9
1 085,8
16,4
0,5
16,9
Accruals and deferred expenses
Subsidies to be paid (innovation)
Other deferred income
Other tax and social charges to be paid
Other charges to be paid
Other
Total of the accruals and deferred expenses
2013
0,0
71,7
0,0
0,1
0,0
71,8
2012
599,9
20,0
55,0
7,0
81,5
763,4
Other liabilities
Outstanding payments on securities not fully paid up
Received security deposits
Advance from the State to the EPIC BPI-Groupe
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
Sundry creditors
Total other liabilities
2013
1 149,8
0,0
902,6
0,0
0,0
0,0
0,0
0,0
0,0
0,0
2 052,4
2012
2013
2012
6,9
4,0
794,9
175,9
1 208,5
10,2
49,6
495,1
13,4
124,5
2 883,0
6.5. Debts to lending 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
Total debts to lending institutions
0,0
0,0
0,0
321,5
321,5
300,0
21,5
0,0
0,0
2,2
323,7
5,6
5,6
0,0
10 590,5
6 967,3
4 701,0
900,0
500,0
3 623,2
76,8
10 672,9
Breakdown of the Debts to lending institutions, between current and non-current elements
Current
Non-current
Total
2013
2,2
321,5
323,7
2012
4 241,9
6 431,0
10 672,9
|
6.6. Debts due to customers
Demand and overnight debts
Ordinary deposits and accounts
Overnight accounts and borrowing
Term debts
Term borrowings and accounts (*)
Securities sold on repo
Advance from State shareholder
Total debts due to customers
(*) : of which €1,300 million with the State in 2012 and 2013
2013
2012
0,0
0,0
0,0
1 300,0
1 300,0
0,0
16,0
0,0
1 316,0
57,2
57,2
0,0
1 780,1
1 757,5
22,6
15,9
300,0
2 153,2
Change of the debts due to customers
Current
Non-current
2013
16,0
1 300,0
2012
302,0
1 833,2
6.7. Public guarantee funds
Breakdown of the Debts to lending institutions, between current and non-current elements
Reserve funds
AFT (Agence France Trésor)
CDC
Hived-off assets
Other Funds
Non-current
Total of the public guarantee funds
2013
0,0
0,0
0,0
0,0
67,5
0,0
67,5
2012
888,2
852,5
24,3
24,6
158,5
264,6
2 212,7
6.8. Fair value of assets and liabilities
ASSETS
Level 1 (*)
116,9
1 029,9
LIABILITIES
(*) : these operations involve demand accounts, cash or cash equivalents.
ASSETS
LIABILITIES
Level 1 (*)
2013
Level 2
Level 3
Total
1 810,7
1 927,6
1 029,9
342,4
1 484,2
342,4
1 484,2
2012
Level 2
Level 3
Total
275,9
5 630,9
119,6
11 303,7
395,5
16 934,6
5,6
57,2
10 709,2
2 228,6
10 714,8
2 285,8
6.9. Euro equivalent of foreign currency transactions
Assets
Liabilities
2013
2012
21,5
21,5
1,6
24,4
|

Note 7 - Notes relative to the profit and loss statement
7.1. Interest income and expense (cf. note 1.1.2)
Transactions with lending institutions (*)
Customer loans
Overdrafts
Short-term credit facilities
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
2012
2013
restated
56,1
51,6
2012
27,5
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
0,1
22,6
223,4
261,8
5,9
22,9
536,7
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
887,4
-632,9
-78,4
-8,5
97,3
264,9
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
67,8
187,0
214,3
203,9
673,0
Other interests and similar income
0,0
0,0
0,4
Total interest and related income
56,1
51,6
1 502,5
(*) These operations only involved Bpifrance Financement (loan operations for €48.2 million and guarantee
commissions staggered over the lifespan of the operations for €7.9 million).
Transactions with lending institutions
2012
2013
restated
-6,3
-8,5
2012
-204,1
Customer loans
of which allocation of commission earnings to the guarantee funds
Finance lease operations
Allowances to depreciations (excluding Art. 64 and Art. 57)
Other expenses
Operations involving financial instruments
Debt securities
Subordinated debts
Hedging derivatives
-41,8
0,0
-40,0
0,0
-154,2
-97,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
-96,4
-96,4
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
-97,4
-0,2
-248,5
-323,1
Other interests and similar income
of which financial proceeds allocated to the guarantee funds
Total interest and related income
0,0
0
-48,1
0,0
0,0
-48,5
-298,8
-274,6
-1 076,6
|
7.2. Expenses from other activities (cf. note 1.1.2)
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
LICC provisions, Digital Loans
Other expenses
Total expenses from other activities
2013
0,0
0,0
0,0
0,0
0,0
0,0
-12,0
0,0
-12,0
2012
restated
2012
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
-28,6
0,1
-5,9
-0,3
-0,3
-6,4
0,0
-16,5
-57,6
2012
restated
0,0
0,0
-0,3
0,0
-0,3
2012
-162,5
-23,6
-83,4
-1,3
-270,8
7.3. Operating general expenses (cf. note 1.1.2)
Personnel expenses
Duties and taxes
Other operating expenses
Costs related to restructuring
Total general operating expenses
2013
0,0
-0,1
-0,6
0,0
-0,7
7.4. Share of net income from companies accounted for using the equity method
Bpifrance group
Total share of net income from companies accounted for using the
equity method
2013
Share in the net earnings of equity
interests accounted for using the
equity method
193,4
0,0
193,4
7.5. Income net of taxes from discontinued activities or activities undergoing disposal (cf. note 1.1.2)
2013
SA OSEO Group 2012 earnings
MV disposal of SA OSEO shares
SA OSEO Group 1st quarter 2013 earnings
Visualization of the goodwill of SA OSEO shares
61,6
-5,1
14,9
-4,6
Income net of taxes from discontinued activities or activities undergoing
disposal

2012
restated
5,2
61,6
Note 8 - Exposure, management and measurement of risks
8.1. General risk management organisation
After the operations on 12 July 2013, the status as a financial company was transferred from the EPIC BPIGroupe to Bpifrance, a holding company that holds the group’s operational subsidiaries and consolidates the
risks. The EPIC BPI-Groupe is only exposed to its individual risks, as Bpifrance has been consolidated using the
equity method (cf. 1.1.2. Accounting impact on the EPIC BPI-Groupe from the set-up of Bpifrance).
On 31 December 2013, the risks inherent to the activities of the EPIC BPI-Groupe were limited to:

credit and counterparty risks: risks of losses due to a counterparty’s inability to meet its financial
obligations,

market risks: risks of losses due to changing prices and market rates.
8.2. Quantitative analyses of the credit and counterparty risks on financial activities
Maximum credit risk exposure
Loans and receivables to lending institutions
Loans and receivables to customers
Total
2013
1 756,6
1 029,9
2 786,5
Quantitative information on the credit risk
The loans and receivables due from lending institutions, equal to €1,756.6 million on 31 December 2013,
exclusively involve the group, with loans for €1,621.5 million (excluding related receivables) and current accounts
for €116.9 million (excluding related receivables) with Bpifrance Financement.
The loans and receivables due from customers, equal to €1,029.9 million on 31 December 2013, exclusively
involve demand accounts opened with the French State (Agence France Trésor).
|
8.3. 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 all of the positions in the balance sheet and the off-balance sheet.
The market parameters affecting the EPIC BPI-Groupe are primarily interest rates.
The balance sheet items of the EPIC BPI-Groupe exposed to a rate risk are limited to cash deposits and loans /
borrowing operations for which the EPIC BPI-Groupe is involved as an intermediary between the initial lenders
and Bpifrance Financement. As such, these operations are perfectly backed on the EPIC BPI-Groupe balance
sheet in terms of rates and liquidity. Finally, to the extent that these outstandings are, in the end, included in the
Bpifrance Financement balance sheet as financial risks, the structural risks related to these outstandings are
included within the overall steering and follow-up framework of the Bpifrance Financement ALM risks.
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.
Increase of
100 basis
points
31 December 2013
Sensitivity of the 2013 interest margin
Sensitivity of the net present value of the 2013 balance sheet
Decrease of 100
basis points
2,6
-0,4
Cash flows payable by the EPIC BPI-Groupe relative to its financial debts, broken down by residual
contractual maturity
Book value
Repayment of term borrowings to the
State
Repayment of term borrowings to
lending institutions

Total
incoming
(outgoing)
flows
1 316,0
323,7
0,0
On-demand
2013
Under 3
months
Between 3
and 12
months
Between 1
year and 5
years
After 5
years
16,0
0,0
108,0
1 192,0
2,0
2,4
309,7
9,6
Note 9 - Disclosure of interests in other entities
9.1. Important assumptions and judgments
As the EPIC BPI-Groupe only holds Bpifrance securities, no judgment was required relative to the determination
of the scope of consolidation.
9.2. Interests in subsidiaries
The EPIC BPI-Groupe holds no minority interests.
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
Equity interests in associated companies
The EPIC BPI-Groupe, as the holding company that holds the French State’s equity interest in Bpifrance, holds
equity interests in an associated company that is considered to be individually significant. These equity interests
are presented after the adjustments related to the application of the equity method.
|
Table of the interests in entities accounted for using the equity method 2013 – Bpifrance Group consolidated financial statements
Bpifrance group
Main establishment
France
Percentage of voting rights
50,00%
Consolidation method
Equity method
Cash, central banks
Accruals and miscellaneous assets
Non-current assets held for sale
Interests in companies accounted for using the equity method
Investment property
Goodwill
173,5
2 522,7
367,1
5 658,1
2 189,4
19 850,3
5 289,1
614,9
297,9
6 634,1
67,5
3 878,3
0,0
6 218,5
12,0
104,9
49,8
0,5
TOTAL ASSETS
53 928,6
Cash, central banks
Debt securities
Accrued expenses and other liabilities
Debts related to non-current assets intended to be sold
Provisions
Public guarantee funds
Subordinated debts
Shareholders equity
- Capital and related reserves
- Consolidated reserves
- Gains and losses directly recognised in the shareholders equity
- Earnings
Minority interests
- Reserves
- Earnings
TOTAL LIABILITIES
0,0
5,0
432,2
11 180,2
2 521,9
9 442,2
229,1
332,2
3 451,7
0,0
1 663,5
1 005,0
2 296,5
14,6
21 354,5
21 067,3
20 981,4
-2 143,8
1 842,9
386,8
287,2
283,7
3,5
53 928,6
Consolidated financial statements
EARNINGS (in millions of euros)
Expense on other activities
NET BANKING INCOME
Operating general expenses
Amortisation & depreciation allowances on tangible & intangible fixed assets
GROSS OPERATING EARNINGS
Cost of risk
OPERATING INCOME
Share of net income from companies accounted for using the equity method
Net gains or losses on other assets
Changes to the value of the goodwill
PRE-TAX EARNINGS
Corporation tax
Income net of taxes from discontinued activities or activities undergoing disposal
NET EARNINGS
Minority interests
GROUP SHARE OF NET INCOME
* Earnings per share (in euros)
* Diluted earnings per share (in euros)
Reconciliation with the book value of these equity interests
Shareholders equity relative to the interest percentage
Evaluation / acquisition discrepancies
Consolidation adjustments
Book value of the equity interests in the associated company
31/12/2013
661,5
-406,6
32,2
-3,9
-42,6
12,3
43,2
-20,6
275,5
-208,8
-13,3
53,4
-32,6
20,8
416,7
0,0
0,0
437,5
-47,2
0,0
390,3
3,5
393,8
0,18
0,18
21 067,3
10 533,6
410,0
10 943,6
Interests in associated companies considered to be insignificant
The group holds no equity interests in another associated company that is considered to be significant.
9.4. Interest held in non-consolidated structured entities
The group holds no interests in a structured entity.
|

Note 10 - Sector-specific information
The contributions within the EPIC BPI-Groupe are the following:
2013
NBI
Operating costs
Operating income
Share in the net earnings of companies accounted for
using the equity method
EPIC BPIGroupe
-4,0
-0,7
-4,7
Bpifrance
group
0,0
0,0
0,0
0,0
193,4
Balance sheet outstandings
Loans and receivables due from lending institutions
Equity interests in companies accounted for using the equity
method

Total
-4,0
-0,7
-4,7
-193,4
2013
1 756,6
1 029,9
10 943,6
Note 11 – 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)
2013
15 729,2
0,0
0,0
0,0
0,0
15 729,2
15 729,2
0,0
0,0
0,0
0,0
0,0
0,0
2012
16 785,9
3 911,3
10,0
3 901,3
795,1
12 079,5
17,3
12 062,2
0,0
2 091,2
1 182,0
908,2
1,0
(*) : as on 31 December 2013, these commitments include the guarantee given by EPIC BPI-Groupe to
Bpifrance Financement as part of the issues of EMTN and deposit certificates

Note 12 - Other information
12.1. Related parties
The related parties of the EPIC BPI-Groupe are the companies included within the scope of consolidation, namely
Bpifrance. The operations with Bpifrance are listed in the column “Companies under joint control”.
The operations with Bpifrance Financement are presented in notes 6, 7 and 11.
Assets
Loans and advances
Equity instruments
Other receivables
Total assets
Liabilities
Deposits
Term borrowings
Other liabilities
Total liabilities
Miscellaneous information
Guarantees issued by the group
Guaranties received by the group
Impairment of doubtful receivables
Total expenses, including:
Interest expenses
Fees and commissions
Services received
Other liabilities
Total proceeds, including:
Interest income
Fees and commissions
Services received
Dividend income
Other
Other information
Charges for the year pertaining to doubtful loans
Balance sheet
Companies under
joint control
Total
1 756,3
0,0
0,0
1 756,3
1 756,3
0,0
0,0
1 756,3
0,0
0,0
1 221,4
1 221,4
0,0
0,0
1 221,4
1 221,4
0,0
0,0
0,0
0,0
0,0
0,0
Profit and loss
statement
Companies under
joint control
0,2
0,0
0,0
0,0
0,0
28,3
28,3
0,0
0,0
0,0
0,0
0,0
Total
0,2
0,0
0,0
0,0
0,0
28,3
28,3
0,0
0,0
0,0
0,0
0,0
|
12.2. Statutory auditors’ fees shown in the profit and loss statement (pre-tax)
(in thousands of euros)
Mazars
2013
2012
KPMG
2013
2012
Fees relative to the statutory accounting, the certification and
examination of the individual and consolidated accounts
23
19
23
19
Fees relative to the other due diligence reviews and services
directly related to the mission of the Statutory auditors
Total
23
19
23
19
6. INDIVIDUAL FINANCIAL STATEMENTS
EPIC BPI-Groupe balance sheet
Notes
Gross
ASSETS (in thousands of euros)
Fixed assets
Financial fixed assets
- Equity interests
- Loans
3
4
Current assets
- Other receivables
- Cash
Total assets
5
6
Amortisation
Depreciations
31/12/2013
Net
31/12/2012
Net
12 130 331,7
0,0
12 130 331,7
2 994 623,8
12 130 331,7
10 490 698,2
1 639 633,5
0,0
0,0
0,0
12 130 331,7
10 490 698,2
1 639 633,5
2 994 623,8
1 350 839,6
1 643 784,2
1 163 714,4
0,0
1 163 714,4
948 727,6
16 899,8
1 146 814,6
0,0
0,0
16 899,8
1 146 814,6
17 838,3
930 889,3
13 294 046,1
0,0
13 294 046,1
3 943 351,4
|
Individual financial statements
EPIC BPI-Groupe balance sheet
Notes
31/12/2013
31/12/2012
LIABILITIES (in thousands of euros)
Shareholders equity
9 462 685,0
1 407 316,5
- Subscribed capital
9 083 417,7
1 350 839,6
- Retained earnings
56 476,9
44 614,8
322 790,4
11 862,1
1 639 633,5
1 643 784,2
7
- Profit or loss for the fiscal year
Financial liabilities
- Loans and receivables with lending institutions
8
323 695,4
327 849,9
- Miscellaneous financial loans and debts
9
1 315 938,1
1 315 934,3
970 281,1
850 079,5
Operating debts
- Trade creditors and other accounts payable
10
93,0
368,5
- Tax and company receivables
11
31,0
55,3
- Other debts
12
970 157,1
849 655,7
1 149 750,0
0,0
1 149 750,0
0,0
71 696,5
42 171,2
71 696,5
42 171,2
13 294 046,1
3 943 351,4
Other liabilities
- Bpifrance securities still to be paid up
13
Deferred income
- Deferred income
Total liabilities
14
EPIC BPI-Groupe off-balance sheet
Note
31/12/2013
31/12/2012
15 729 200,0
11 189 200,0
5 615 200,0
4 875 200,0
10 114 000,0
6 314 000,0
COMMITMENTS GIVEN
Financing commitments
. Commitments to lending institutions
. Commitments to customers
Guarantee commitments
. Guarantee commitments to lending institutions
. Guarantee commitments
15
. Commitments to the clientele
Commitments on securities
. Securities acquired on forward repurchase orders
. Other commitments given
COMMITMENTS RECEIVED
. Commitments received from the State
. Commitments received from lending institutions
Commitments on securities
. Securities sold on forward repurchase orders
. Other commitments received
|
EPIC BPI-Groupe profit and loss statement
Notes
31/12/2013
31/12/2012
0,0
0,0
Operating earnings
Operating expenses
-668,4
-599,5
- External charges
-583,4
-343,0
- Duties and taxes
-85,0
61,8
0,0
-318,3
-668,4
-599,5
56 081,9
61 633,8
16
- Depreciation charges on fixed assets
OPERATING INCOME
Financial proceeds
- Dividends
- Interest income
17
Financial expenses
- Interest and similar expenses
18
FINANCIAL RESULT
Extraordinary Income
19
- Income from disposal of asset elements
Extraordinary expenses
20
- On management operations
0,0
10 022,4
56 081,9
51 611,4
-48 140,0
-48 453,9
-48 140,0
-48 453,9
7 941,9
13 179,9
1 678 356,5
336,5
1 678 356,5
336,5
-1 362 839,6
-336,5
-12 000,0
0,0
-1 350 839,6
-336,5
EXTRAORDINARY PROFIT OR LOSS
315 516,9
0,0
CURRENT RESULTS BEFORE TAXATION
322 790,4
12 580,4
0,0
-718,3
322 790,4
11 862,1
- Book values of asset elements
- Corporation tax
FISCAL YEAR EARNINGS
21
Accounting Appendix
 NOTE 1 – SIGNIFICANT FACTS AND EVENTS OCCURRING AFTER CLOSING OF ACCOUNTS
89
 NOTE 2 – PRESENTATION AND ASSESSMENT RULES
90
 NOTE 3 – EQUITY HOLDINGS
90
 NOTE 4 - LOANS
92
 NOTE 5 – OTHER RECEIVABLES
92
 NOTE 6 – LIQUIDITY (INCLUDING RELEVANT RECEIVABLES)
93
 NOTE 7 – EQUITY CAPITAL
93
 NOTE 8 – LOANS AND DEBTS ACCRUED
93
 NOTE 9- FINANCIAL DEBTS AND LOANS
94
 NOTE 10- DEBTS TO SUPPLIERS AND RELATED ACCOUNTS
94
 NOTE 11 – FISCAL AND SOCIAL DEBTS
94
 NOTE 12 – OTHER DEBTS
94
 NOTE 13 - SECURITIES
95
 NOTE 14 – INCOME COLLECTED IN ADVANCE
95
 NOTE 15 – OFF-BALANCE SHEET
95
 NOTE 16 – OPERATING COSTS
96
 NOTE 17 – OTHER INTEREST INCOME
96
 NOTE 18 – INTEREST PAYABLE AND SIMILAR CHARGES
96
 NOTE 19 – EXTRAORDINARY INCOME
97
 NOTE 20 – EXCEPTIONAL COSTS
97
 NOTE 21 – TAX ON PROFITS
97
 NOTE 22- RELATED PARTIES
98
|

Note 1 - Significant facts and events after the closing
1.1. Significant events during the fiscal year
1.1.1.
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).
During the first quarter of 2013, the EPIC BPI-Groupe and the CDC acquired equal equity interests in the entity
SNCF B2 (entity with no significant activity), that is intended to become BPI-Groupe (trade name Bpifrance) as a
result of the contribution operations carried out on 12 July 2013.
The Bpifrance group was set up at the end of the following steps:







contribution by the State to Bpifrance of its securities of FSI (renamed Bpifrance Participations) and of its
securities intended for the group’s financing activity;
contribution by the EPIC BPI-Groupe to Bpifrance of its securities of OSEO (renamed Bpifrance
Financement);
contribution by the CDC to Bpifrance of its securities of FSI, OSEO, CDCE (renamed Bpifrance
Investissement) and of a set of securities intended for the group’s investment and financing activities;
Bpifrance capital increase reserved for the CDC, for €231.5 million;
Bpifrance capital increase shared equally between the CDC and the EPIC BPI-Groupe, for €3,066 million;
contribution by Bpifrance of the securities intended for the group’s investment activity, to Bpifrance
Participations (former FSI);
Bpifrance Participations capital increase, for €2,730.8 million.
In addition, the State contributed its securities of Bpifrance to the EPIC BPI-Groupe on 21 October 2013.
After completion of all of these operations, the EPIC BPI-Groupe and the CDC hold equal shares of the voting
rights and powers within Bpifrance.
The reference shareholder of the credit institution Bpifrance Financement is henceforth Bpifrance, that has the
status of a financial company as replacement for the EPIC BPI-Groupe.
1.1.2.
Capital endowments
In fiscal 2013, the capital of the EPIC BPI-Groupe was endowed with €7,732,578,100.




€383,250,000 on 12 July 2013, as part of a State endowment intended to finance the participation of the
EPIC BPI-Groupe in the capital increase of €3,066,000,000 of its subsidiary Bpifrance;
€20,928,800 on 11 October 2013, as part of the agreement between the State and the EPIC BPI-Groupe
relative to the loans for the industrialization of research and development projects coming from the
competitiveness clusters (LICC);
€7,279,328,100 on 18 October 2013, as part of the State’s contribution of the shares of the Bpifrance
company, received in exchange for its equity interests in the FSI and in SOFIRED;
€49,071,300 euros on 3 December 2013, as part of the agreement between the State and the EPIC BPIGroupe relative to digital loans.
1.2. Events after the closing
No significant event occurred after the closing date of the financial statements.

Note 2 - Presentation and assessment rules
The EPIC BPI-Groupe annual financial statements are prepared and presented in compliance with the provisions of
the General Chart of Accounts and of amended CRC regulation n° 99-03.

Balance sheet
Loans and related debts are classified under the asset or liability items on which interest is due to or from.
The shareholders equity heading includes the items subscribed capital, retained earnings and net income for the
year.
In the “Financial fixed assets” heading, the equity interests include securities that are held for the long term as this
is considered to be useful for the company’s activities, notably because it allows for influence over the company
issuing the securities or to assume control of it. These securities are valued at the lower of either their cost price or
their value in present use at the year-end. The latter is notably determined according to the net asset value or of
the business prospects.

Profit and loss statement
The proceeds and expenses are classified by category.
Interest, dividends and guarantee commissions are recognised through profit or loss using the accrual method.
Assets and liabilities in foreign currencies 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 the financial result.

Off-balance sheet
The guarantee commitments given are operations whereby EPIC BPI-Groupe (the guarantor) undertakes in favour
of a third party (the beneficiary) to insure, on behalf of a customer (the originator), an obligation assumed by the
latter if this person does not personally do so.
When it becomes likely, as a result of a failure on the part of the originator, that the beneficiary will call on the EPIC
BPI-Groupe, a provision equal to the probable loss is set up.

Note 3 - Equity interests
2013
2012
Gross amount
10 490 698,2
1 350 839,6
0,0
1 350 839,6
10 490 698,2
0,0
0,0
0,0
10 490 698,2
1 350 839,6
Bpifrance Financement (former OSEO) equity interest
Bpifrance equity interest
Bpifrance depreciation
Net amount
The flows result from the creation of the Bpifrance group (cf. note 1).
|
Corporate name
Registration
in the trade
register
of Créteil
% of
capital held
Value of the securities
held by the Cpy
Directly
Gross
50,00%
10 490 698
Net
Issued
capital
Total
issued
capital
before
earnings
Current
earnings
before
taxes
2013
Net
earnings
2 013
Pre-tax
turnover
fiscal year
2013
Loans and
advances
granted and
not reimbursed
Amount of the
sureties and
endorsements
given
by the company
Dividends
collected
during
the fiscal year
Subsidiaries and equity
interests
Bpifrance
507 523 678
10 490 698 20 983 811
20 981 406
2 417
2 417
192
0
0
0

Note 4 - Loans
2013
2012
Loan in Pounds sterling (1)(2)
Loans (2)
21 505,3
24 408,7
1 600 000,0
1 600 000,0
18 128,2
19 375,5
Total (1)
1 639 633,5
1 643 784,2
(1) The value change is tied to changing exchange rates and to the loan amortisation.
(2) Loans granted to Bpifrance Financement.
Breakdown of the loans (excluding related receivables) by residual maturity on 31/12/2013
Outstandings
D ≤ 1 year
1 year < D ≤ 5
years
D > 5 years
0,0
300 000,0
1 321 505,3
1 621 505,3

Note 5 - Other receivables
2013
2012
PPMTR allocation
16 398,0
17 000,0
28,5
28,5
473,3
473,3
0,0
336,5
16 899,8
17 838,3
Future operating subsidies
Carry Back report
Other sundry receivables
Total
Breakdown of receivables by residual maturity on 31/12/2013
Outstandings
D ≤ 1 year
1 year < D ≤ 5
years
D > 5 years
28,5
16 871,3
0,0
|

Note 6 - Cash on hand (including related receivables)
2013
2012
BRED bank account
301,8
202,2
State current account - Agence France Trésor
State current account - Agence France Trésor Invest.
Future
144 882,3
130 309,9
885 001,8
704 454,7
Bpifrance Financement current account
116 628,7
95 922,5
1 146 814,6
930 889,3
Total

Note 7 - Shareholders equity
Capital
Retained earnings
Profit or loss for the fiscal
year
Total

Appropriation
of the
earnings
Capital
increase
2012
1 350 839,6
2013
earnings
7 732 578,1
2013
9 083 417,7
44 614,8
11 862,1
11 862,1
-11 862,1
322 790,4
322 790,4
0,0
322 790,4
9 462 685,0
1 407 316,5
7 732 578,1
56 476,9
Note 8 - Loans and equivalent debts
2013
2012
Loan in Pound sterling (European Investment Bank)
21 505,3
24 408,7
Codevi loan (BPCE)
300 000,0
300 000,0
2 190,1
3 441,2
323 695,4
327 849,9
Total
Breakdown of the borrowings and debts (excluding related receivables) by residual maturity on 31/12/2013
Outstandings
D ≤ 1 year
1 year < D ≤ 5 years
D > 5 years
0,0
300 000,0
21 505,3
321 505,3

Note 9- Financial loans and debts
2013
2012
Borrowing from the State
1 300 000,0
1 300 000,0
15 938,1
15 934,3
1 315 938,1
1 315 934,3
Total
Breakdown of the borrowings (excluding related receivables) by residual maturity on 31/12/2013
Outstandings
D ≤ 1 year
1 year < D ≤ 5
years
D > 5 years
0,0
0,0
1 300 000,0
1 300 000,0

Note 10- Trade creditors and other accounts payable
These debts are all payable in under 1 year.

Note 11 - Tax and company receivables
These debts are all payable in under 1 year.

Note 12 - Other debts
2013
2012
Investments in the Future Public Resources
827 002,0
704 454,8
Other intervention public resources
75 626,4
91 626,4
Restaurant Modernization funds
67 528,7
53 574,5
970 157,1
849 655,7
Total
Breakdown of the other debts by residual maturity on 31/12/2013
D ≤ 1 year
1 year < D ≤ 5
years
D > 5 years
Outstandings
970 157,1
0,0
0,0
970 157,1
|

Note 13 - Securities
This includes the securities still to be paid up on Bpifrance (SA BPI-Groupe).

Note 14 - Unearned income
2013
2012
Bpifrance Financement guarantee commissions to be staggered over the duration of
the guarantee
71 696,5
42 171,2
Total
71 696,5
42 171,2

Note 15 - Off-balance sheet
2013
2012
COMMITMENTS GIVEN
0,0
0,0
15 729 200,0
11 189 200,0
5 615 200,0
4 875 200,0
KFW
100 000,0
100 000,0
EIB
900 000,0
150 000,0
BPCE
245 200,0
255 200,0
3 450 000,0
3 450 000,0
Postal Bank
720 000,0
720 000,0
Council of Europe
200 000,0
200 000,0
10 114 000,0
6 314 000,0
EMTN programme
7 614 000,0
3 814 000,0
Deposit certificates
2 500 000,0
2 500 000,0
0,0
0,0
- Commitments to customers
- Guarantee commitments to lending institutions
Caisse des Dépôts
- Guarantee commitments given
COMMITMENTS RECEIVED
- Commitments received from the STATE

Note 16 - Operating expenses
2013
2012
Services by Group Companies
-167,3
-182,4
External charges
-416,1
-160,6
Subtotal
-583,4
-343,0
-85,0
61,8
0,0
-318,3
-85,0
-256,5
-668,4
-599,5
Duties and taxes
Depreciation charges on fixed assets
Subtotal
Total

Note 17 - Interest and related income
2013
2012
Demand deposit account
22,1
98,4
Funds reinvested with Bpifrance Financement
48 139,6
48 453,6
- Loans (in €)
48 024,2
48 217,6
115,4
236,0
Commissions
7 920,2
3 059,4
- Bpifrance Financement guarantee commissions (*)
7 920,2
3 059,4
56 081,9
51 611,4
- Loans (in foreign currencies)
Total
(*) These commissions are staggered over the lifespan of the operations.

Note 18 - Interest and similar expenses
Loan (European Investment Bank)
2013
2012
-115,5
-235,9
Loan (BPCE)
-6 250,0
-8 250,0
Loan STATE
-41 774,2
-39 967,6
-0,3
-0,4
-48 140,0
-48 453,9
Demand deposit account
Total
|

Note 19 - Extraordinary Income
2013
2012
Proceeds from assignments of intangible fixed assets
Proceeds from assignments of Bpifrance Financement
securities(*)
0,0
336,5
1 678 356,5
0,0
Total
1 678 356,5
336,5
(*) cf. note 1

Note 20 - Extraordinary expenses
2013
2012
Book values of the assigned asset elements of the intangible fixed assets
Book values of the assigned asset elements of the Bpifrance Financement securities
(*)
LICC provisions, Digital Loans
Total
0,0
-336,5
-1 350 839,6
0,0
-12 000,0
0,0
-1 362 839,6
-336,5
(*) cf. note 1

Note 21 - Corporation tax
Tax is booked using the tax payable method. The taxable income is equal to -€4,726.5 million.
The contribution capital gain from the Bpifrance securities of €327,516,900 is exempt pursuant to article 14 of law
n°2012-1559 of 31 December 2012.

Note 22- Related parties
the Bpifrance Financement related parties
Balance sheet items
Assets
2013
Loans
Current account
1 639 633,5
116 628,7
Liabilities
Deferred income
71 696,6
Profit and loss statement items
External charges
Interest income
Commissions
275,2
48 145,3
7 920,1
Bpifrance related parties
Balance sheet items
Assets
Equity interests
2013
10 490 698,2
Liabilities
Securities still to be paid up
1 149 750,0
|
7. REPORTS FROM STATUTORY AUDITORS
7.1. Report on the consolidated financial statements
KPMG Audit
Le Belvédère
1 Cours Valmy
CS 50034
92923 Pans la Défense Cedex
France
Mazars
Tour Exaltis
61 rue Henri-Régnault
92400 Courbevoie
France
EPIC BPI-Groupe
Statutory auditors’ report on the consolidated financial statements
Fiscal year ending on 31 the December 2006
EPIC BPI-Groupe
27-31, avenue du Général-Leclerc - 94710 Maisons-Alfort
This report contains 42 pages
Reference: PSP – 142.001is RCC
KPMG Audit
Le Belvédère
1 Cours Valmy
CS 50034
92923 Pans la Défense Cedex
France
Mazars
Tour Exaltis
61 rue Henri-Régnault
92400 Courbevoie
France
EPIC BPI-Groupe
Registered office: 27-31, avenue du Général-Leclerc - 94710 Maisons-Alfort
Issued capital: € 9,093,417,679.70
Statutory auditors’ report on the consolidated financial statements
Fiscal year ending on 31 December 2013
Ladies, Gentlemen,
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:

our audit of the consolidated financial statements of the EPIC BPI-Groupe, as attached to this 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 notes 1.1.1
“Establishment of Bpifrance” and 1.1.2 “Accounting impact on the EPIC BPI-Groupe from the set-up of
Bpifrance” of the appendix to the EPIC BPI-Groupe financial statements, most notably with regard to the posting
method for the Bpifrance securities and the comparability of the financial statements.
|
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
As indicated in note 1.1.2. “Accounting impacts on the EPIC BPI-Groupe from the set-up of Bpifrance” and note 2
“Applicable accounting standards on 31 December 2013”, your group posts the Bpifrance shares using the equity
method. 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 appendix to the consolidated financial statements, as well as their correct application.
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.
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 FSI
Mazars
Philippe Saint-Pierre
Associate
Marie-Christine Jolys
Associate
Virginie Chauvin
Associate
7.2. Report on the individual financial statements
EPIC BPI-Groupe
Public corporation of an industrial or commercial nature
with capital of €9,093,417,679.70
Registered office: 27-31, avenue du Général-Leclerc - 94710 Maisons-Alfort
TCR: Créteil TCR D 483 790 069
Statutory auditors’ report on the annual financial statements
Fiscal year ending on 31 the December 2006
KPMG AUDIT FSI
MAZARS
|
Statutory auditors’ report on the annual financial statements
Ladies, Gentlemen,
As part of our assignment for your Board, we present to you our report for the fiscal year ending on 31 December
2013, on:

our audit of the EPIC BPI-Groupe annual financial statements, as attached to the present report,

the bases of our assessments,

the verifications and specific information required by law.
The annual financial statements were prepared by the board of directors. Our responsibility is to express an
opinion on these financial statements based on our audit.
I. 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 the annual financial statements present fairly, in all material aspects, the financial position and
assets and liabilities of the company as of December 31, 2010 and the results of its operations for the year then
ended in accordance with French accounting standards and principles.
Without calling into question the opinion expressed above, we draw your attention to note 1.1 “Significant events
during the fiscal year” of the notes to the annual financial statements, that presents the steps in the set-up of
Bpifrance and the capital endowments of the EPIC BPI-Groupe.
II. Justification of the assessments
In application of the provisions of article L.823-9 of the Commerce code relative to the justification of our
assessments, we hereby inform you that the assessments carried out by us related to the appropriate nature of
the applied accounting principles, and to the overall presentation of the financial statements.
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.
III. Specific verification
In compliance with the professional standards applicable in France, we have also carried out the specific
verification required by law.
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.
Signed in Paris La Défense and Courbevoie, on 17 April 2014
The Statutory auditors
KMPG Audit FSI
Marie-Christine JOLYS
Philippe SAINT-PIERRE
Mazars
Virginie CHAUVIN
|
BPI-Groupe
Public corporation of an industrial and commercial nature
Créteil TCR 483 790 069
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

EPIC BPI-GROUPE ANNUAL REPORT 2013

Transcription

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