SFIL Annual financial report 2018

Consolidated financial statements in accordance with IFRS I 3 93 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 5.10.2. Effective tax expense The difference between the actual corporate income tax rate and the French tax rate can be analysed as follow: 2017 2018 INCOME BEFORE INCOME TAXES 93 69 Net income from associates - - TAX BASE 93 69 Applicable tax rate at end of the period 34.43% 34.43% THEORETICAL CORPORATE INCOME TAX AT THE STANDARD RATE (32) (24) Tax effect of non-deductible expenses (2) (2) Tax effect of non-taxable income - - Impact of items taxed at a reduced rate - - Other additionnal taxes or tax savings (0) - Tax audit effects (1) (3) 14 Use of corporate income tax rate applicable to the future fiscal years (2) (2) 6 Corportate income tax recorded in the income statement (39) (6) (1) As of the end of 2018, the tax authority had levied adjustments relating to the 2012 and 2013 tax audit. 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, assessed related deferred taxes and reversed the relevant provisions. It kept in its accounts the amount of the provision set aside in respect of sums not yet paid. The 2018 accounting result consequently shows income corresponding to the provision’s and deferred taxes’ adjustment. (2) Group SFIL has took into account the legislative measures designed to reduce the corporate income tax rate to 25,83% as of 2022. 5.10.3. Tax consolidation Since January 1, 2014, Caisse Française de Financement Local has been a member of the SFIL tax group. 6. Note on off-balance sheet items (EUR millions) 6.1 - REGULAR WAY TRADE 12/31/2017 12/31/2018 Assets to be delivered - - Liabilities to be received - - 6.2 - GUARANTEES 12/31/2017 12/31/2018 Guarantees received from credit institutions 22 8 Enhanced guarantees (1) 3,247 7,383 Loan guarantee commitments received 3,248 7,385 Guarantees received from customers (2) 2,549 2,232 (1) Irrevocable, unconditional guarantees issued by the French State and received by SFIL for funding major export credits. (2) Guarantees received from customers are generally granted by local governments. 6.3 - FINANCING COMMITMENTS 12/31/2017 12/31/2018 Loan commitments granted to credit institutions - - Loan commitments granted to customers (1) 3,318 6,312 Loan commitments received from credit institutions (2) 7,031 9,569 Loan commitments received from customers - - (1) The financing commitments on loans and lines of credit corresponded to contracts issued but not paid out as of December 31, 2018. The amount mainly corresponded to commitments of EUR 2,684 millions on operations in the new business line of export credit. (2) At the end of 2018, this amount corresponded to funding commitments received from Caisse des dépôts et consignations and La Banque Postale for respective amounts of EUR 8,889 million, and 681 million. SFIL recorded the total of its commitments related to the only tranches existing, which is limited to 8,889 million. This amount does not take into account the possibility stipulated in the financing agreement with Caisse des dépôts et consignations to negociate additional funding in good faith. The principal in a loan received from Caisse des dépôts et consignations may not exceed EUR 12.5 billion.