SFIL Annual financial report 2018

3 Annual Financial Report 2018 SFIL ANNUAL FINANCIAL REPORT 2018 SFIL Contents 1. MANAGEMENT REPORT.................................................................................................................................................................................................... 5 Context................................................................................................................................................................................................................................... 5 Highlights of 2018..............................................................................................................................................................................................................6 General business environment..................................................................................................................................................................................... 8 1. The SFIL Group’s financing of local public sector investments.......................................................................................................... 8 2. Refinancing export credits................................................................................................................................................................................. 8 3. Services provided to La Banque Postale....................................................................................................................................................9 4. SFIL Group financing...........................................................................................................................................................................................9 Changes in the main balance sheet items..............................................................................................................................................................11 1. Changes in assets...................................................................................................................................................................................................11 2. Changes in liabilities............................................................................................................................................................................................13 Internal control and preparation and processing of accounting and financial information............................................................. 14 1. Overall internal control system....................................................................................................................................................................... 14 2. Preparation and processing of accounting and financial information...........................................................................................18 Risk management.............................................................................................................................................................................................................21 1. Overall risk management system....................................................................................................................................................................21 2. SFIL Group key risks...........................................................................................................................................................................................21 Operating results..............................................................................................................................................................................................................32 Outlook................................................................................................................................................................................................................................36 Social, environmental and societal information..................................................................................................................................................37 Additional information.................................................................................................................................................................................................. 43 2. CORPORATE GOVERNANCE REPORT.................................................................................................................................................................... 45 1. Governance information................................................................................................................................................................................... 45 2. Compensation information..............................................................................................................................................................................58 3. Information on items that could be affected by a takeover bid or public exchange offer..................................................61 4. Additional information.......................................................................................................................................................................................61 3. CONSOLIDATED FINANCIAL STATEMENTS IN ACCORDANCE WITH IFRS.............................................................................................63 Consolidated financial statements............................................................................................................................................................................63 Notes to the financial statements in accordance with IFRS.........................................................................................................................67 Statutory Auditors’ report on the consolidated financial statements.....................................................................................................108 4. ANNUAL FINANCIAL STATEMENTS IN ACCORDANCE WITH FRENCH GAAP..................................................................................... 113 Annual financial statements....................................................................................................................................................................................... 113 Notes to the financial statements in accordance with French GAAP...................................................................................................... 116 Statutory Auditors’ report on the annual financial statements..................................................................................................................130 5. SHAREHOLDERS’ MEETING OF MAY 29, 2019................................................................................................................................................... 133 Statutory Auditors’ special report on regulated agreements and commitments............................................................................... 133 Proposed resolutions....................................................................................................................................................................................................139 6. GENERAL INFORMATION............................................................................................................................................................................................143 Legal and administrative information....................................................................................................................................................................143 Statement by the person responsible...................................................................................................................................................................146 This free translation of the annual financial report published in French is provided solely for the convenience of English-speaking readers