SFIL Annual financial report 2018

Consolidated financial statements in accordance with IFRS I 3 85 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 3.4 - TAX LIABILITIES 12/31/2017 12/31/2018 Current income tax 1 7 Other taxes 0 1 Current tax liabilities 1 8 Deferred tax liabilities (see note 4.2) - - TOTAL TAX LIABILITIES 1 8 3.5 - ACCRUALS AND OTHER LIABILITIES 12/31/2017 12/31/2018 Cash collateral received 1,276 1,239 Other accrued charges 40 71 Deferred income - - Contribution to support fund (1) 110 100 Other accounts payable and other liabilities 8 19 TOTAL 1,434 1,429 (1) The item includes the residual balance of the commitment that Caisse Française de Financement Local made in 2013 to contribute EUR 10 million a year for 15 years, i.e. EUR 150 million to the multi-year support funds for local governments entities. 3.6 - PROVISIONS 12/31/2017 Additions, including increases in existing provisions Amounts used Unused amounts reversed during the period Increase in the discounted amount (passage of time) and effect of any change in the discount rate Other movements 12/31/2018 Legal issues and tax litigation (1) 41 - - (34) - - 7 Commitments and guarantees given (2) - 1 - - - 6 7 Provision on pensions 7 0 - (1) - - 6 TOTAL 48 1 - (35) - 6 20 (1) As of the end of 2018, the tax authority had levied adjustments relating to the 2012 and 2013 tax audit of Caisse Française de Financement Local. It nevertheless reduced the amount of the adjustment relating to the add-back of the results of the former branch in Ireland, but maintained the principle of taxation of these results in France. Caisse Française de Financement Local settled this adjustment and reversed the relevant provisions. It kept in its accounts the amount of the provision set aside in respect of sums not yet paid. (2) In connection with the implementation of IFRS 9, Group SFIL reclassifed provisions for commitments as liabilities. 4. Other notes on the balance sheet (EUR millions) 4.1 - DERIVATIVES 4.1.1. Analysis by nature Hedging derivatives, presented below, are made following Group SFIL risk policy detailed in the Managment report (see 2.3.3. and 2.3.4.). 12/31/2017 12/31/2018 Assets Liabilities Assets Liabilities Derivatives at fair value through net income (1) - 4 13 1,229 Derivatives designated as fair value hedges 3,356 5,422 3,305 3,741 Derivatives designated as cash fow hedges 3 56 1 74 Derivatives designated as portfolio hedges 1,360 2,587 1,114 2,335 Hedging derivatives 4,719 8,065 4,420 6,150 CVA / DVA Impact (4) (2) (5) (16) TOTAL DERIVATIVES 4,715 8,067 4,428 7,363 (1) As from 1st January 2018 and the entry into force of IFRS 9, derivatives used to hedge assets reclassified as assets measured at fair value through net income can no longer be classified as hedging instruments for accounting purposes. They are therefore now allocated to this category.