SFIL Annual financial report 2018

2018 is the year in which our public de- velopment bank model came of age . Indeed, SFIL, the seventh‑largest French bank by total assets, now fully and equally fulfills both public policy missions en‑ trusted to it by the State, and, after six years of operation, its success is as indisputable as its prospects are solid. This con‑ tinuing collective achievement comes thanks to our teams’ involvement and our sharehold‑ ers – the French State, Caisse des Dépôts and La Banque Postale – who I would like to thank for their commitment to our development. very strong growth in local public sector refinancing In 2018, SFIL further strengthened its position as the first lender to the local public sector . In partnership with La Banque Postale, since its creation SFIL has provided nearly EuR 24 billion of financing through loans of widely varying amounts and terms, drawing on La Banque Postale’s dense distribution network. Our ambition is to remain the first lender to this sector by renewing our relationships with our 14,500 customers – notably through the rollout of our new digital management platform. Export credit: an exceptional year highlighting the system’s considerable effectiveness Our refinancing of large export credit contracts also expanded at an exceptional pace. For the second consecutive year, SFIL covered more than 45% of the liquidity needs of major French export credit contracts. Since 2015, our bank has refinanced a total of EuR 7.1 billion of outstandings under ten export contracts for eight exporters spanning five sectors, in partnership with 15 different banks. Rounded out by the deployment of the refinancing of major projects of strategic interest , announced by France’s Prime Minister in February 2018, our system will allow us to offer the country’s major exporters support on a par with that of the most highly performing platforms internationally . The largest public sector issuer after the French State With an excellent rating in the financial markets, our bank enjoys a diversified financing capacity, exceptional in terms of volume, maturity and cost. Our debt issues rank in the top tier and we currently have 502 different investors (compared with 115 at end‑2013). Since 2013, we have raised EuR 38 billion in long-term financing , half of which cover maturities of at least ten years (compared with a banking sector average of five years). Since 2016, SFIL has been France’s largest public sector issuer after the State . The success in early 2019 of our first social issue, dedicated to the financing of public hospitals, perfectly illustrates our extraordinary capacity across the board – whether for amounts issued, financing conditions or total number of investors, including many new names. A forecast-beating financial trajectory As our 2018 financial results demonstrate, our financial trajectory , based on a low‑risk businessmodel, is outperforming expectations with excellent levels of solvency and liquidity. Since 2015, we have seen positive results and consistent profitability in both of our activities. Becoming a major player in the responsible finance ecosystem At the end of 2018, the SFIL Group adhered to the sustainable development goals defined by the united nations as part of the Global Compact . Our CSR commitment, which is a natural part of our DNA, is reflected in our top‑tier extra‑financial ratings and will continue to play out through our regular social and green bond issues. Strong ambitions as part of the major public hub serving France’s regions In November 2018, the French State and Caisse des Dépôts announced that they had entered into discussions with a view to transferring control of SFIL to Caisse des Dépôts. Scheduled for 2020, this will make SFIL part of a major public sector financial hub revolving around Caisse des Dépôts and La Poste. SFIL’s shareholder base will remain fully public. Its shareholders will ensure that SFIL’s financial solidity is preserved and its economic base protected, and will continue to provide it with the support it needs, in accordance with the applicable regulations. Aware of the strategic importance of their missions, SFIL’s teams will continue to fulfill them with the same stringency and commitment that enabled our bank to establish itself as a key player in the development of France’s economy at both national and regional level . Indisputable collective achievement, a balanced model and solid prospects ‘‘ Philippe Mills, Chief Executive Officer