SFIL Annual financial report 2018

Management report I 1 13 Annual Financial Report 2018 SFIL Management report Report on corporate governance Consolidated financial statements in accordance with IFRS Annual financial statements in accordance with French GAAP Shareholders’ Meeting of May 29, 2019 General information 2. Changes in liabilities The net change in the SFIL Group’s main liabilities in 2018 was an increase of EUR 0.8 billion. This change can be analyzed as follows: (In EUR billions, equivalent value after currency swaps) 2018 BEGINNING OF YEAR 59.5 Obligations foncières 1.3 Issues 4.9 Amortization (3.6) Redemptions 0.0 Change in cash collateral received (0.2) Shareholder refinancing (2.3) SFIL bond issues 2.0 Certificates of deposit 0.0 Equity and other items 0.0 END OF YEAR 60.3 Outstanding obligations foncières increased by EUR 1.3 bil‑ lion as a result of associated amortization, partly offset by the new 2018 program for a total of EUR 4.9 billion. At the same time, the cash collateral paid by the derivatives counterparties of CAFFIL and SFIL decreased by EUR 0.2 billion. The EUR 2.3 billion decrease in shareholder refinancing relates to the amortization of the balance sheet and, for EUR 2.0 billion, to the increase in SFIL’s bond issuance-based refinancing. Outstandings on this bond issuance program, which SFIL launched in 2016, totaled EUR 4.9 billion at the end of 2018. 1.3 – EXPOSURES TO BANKS (CASH ASSETS, BANK CASH INVESTMENT SECURITIES AND CASH COLLATERAL) Exposures to banks recognized as assets on the SFIL Group’s balance sheet are of three types: •  cash assets deposited chiefly with the Banque de France, which totaled EUR 1.9 billion as of December 31, 2018; •  bank cash investment securities for EUR 3.3 billion as of December 31, 2018, compared with EUR 1.2 billion as of December 31, 2017; •  cash collateral payments made to banking counterpar‑ ties or clearing brokers to hedge counterparty risk on the derivatives portfolio (swaps). This derivatives portfo‑ lio requires that SFIL constitute collateral, generating a financing need for SFIL. SFIL had paid EUR 2.1 billion in this regard as of December 31, 2018.