SFIL Annual financial report 2018

1 I Management report 34 SFIL Annual Financial Report 2018 Shareholdings SFIL acquired all the shares of Caisse Française de Finance‑ ment Local on January 31, 2013, for EUR 1. In 2017, it increased its shareholding by subscribing to the whole EUR 35 million capital increase organized that year. SFIL owns CAFFIL outright. Equity investment in 2013 representing more than 66% of the capital Caisse Française de Financement Local SA with share capital of EUR 1,350,000,000 Proposed allocation of net income The Annual Shareholders’ Meeting of May 29, 2019, will not be asked to approve a dividend distribution. It will be asked to approve a resolution to allocate net income as follows: EUR ALLOCATION OF NET INCOME Net income for the year 43,894,360.64 Legal reserve (5%) (2,194,718.03) Retained earnings 12,814,036.42 Income available 54,513,679.03 Retained earnings after allocation to legal reserve 54,513,679.03 Non-tax-deductible charges and expenses Pursuant to article 223 quater of the French General Tax Code ( Code général des impôts ), it is specified that in the past fiscal year non-tax-deductible charges and expenses covered by article 39-4 of the French General Tax Code totaled EUR 37,665.83. The amount of operating expenses added back following a definitive tax adjustment (articles 223 quinquies , 39-5 and 54 quater of the French General Tax Code) is nil given the absence of any adjustment. Research and development As the Company does not conduct any research and devel‑ opment activities, no related data is mentioned in the finan‑ cial statements. Supplier payment periods Pursuant to articles L.441-6-1 and D.441-4 of the French Com‑ mercial Code, every year SFIL is required to publish infor‑ mation on the due dates of its trade payables. SFIL’s trade payables represent a non-material amount on the Compa‑ ny’s total balance sheet. SFIL’s practice is to always settle its invoices within 45 days unless a contractual agreement signed with the supplier provides for a 30 or 60-day pay‑ ment period. Trade payables amounted to EUR 1.3 million as of Decem‑ ber 31, 2018 and were mostly dated within the last 30 days. Readers are reminded that as of December 31, 2017, trade payables dated within the last 30 days amounted to EUR 1.7 million. The breakdown of unpaid trade payables due as of the end of 2018 is as follows: Arrears on invoices received by the closing date (A) Length of arrears 0 (for information) 1 to 30 days 31 to 60 days 61 to 90 days 91 days and more TOTAL Number of invoices concerned 1 11 3 1 3 19 Total amount of invoices concerned excluding VAT (EUR thousands) 17 440 25 7 16 506 % of total purchases in the year excluding VAT 0.0 1.1 0.1 0.0 0.0 1.2 (B) Invoices excluded from (A) relating to litigious or unaccounted for debt and invoices Number of invoices concerned – Total amount of invoices concerned – Reference payment period Contractual period – generally 45 days Banking and related operations are not included in the information on payment terms. 4. Indicators of return on assets Article R.511-16-1 of the French Monetary and Financial Code, introduced pursuant to arrêté 2014-1315 of November 3, 2014, requires credit institutions to publish in their annual report their return on assets, defined as the ratio of net income to total assets. For 2018, this ratio stood at 0.09% in the consolidated financial statements under IFRS and at 0.40% in SFIL’s company financial statements under French GAAP.