SFIL Annual financial report 2018

Consolidated financial statements in accordance with IFRS I 3 99 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 7.3 - EXPOSURE TO CREDIT RISK In 2018, exposure to credit risks, as presented to management, includes the following: –– for assets other than derivatives: the amount on the balance sheet; –– for derivatives: the derivative’s market value (marked-to-market), the amount of collateral exchanged and a fat-rate add-on, depending on the derivative’s maturity and the nature of the underlying; –– or off-balance sheet commitments: the undrawn amount of financing commitments, which is stated in the notes to the financial statements. The metric used is exposure at default (EAD). Exposure to credit risk is broken down by region and by counterparty, taking into account the guarantees received. This means that when the credit risk is guaranteed by a third party whose weighted risk (within the meaning of Basel regula- tions) is less than that of the direct borrower, the exposure is included in the guarantor’s region and business sector. 7.3.1. Breakdown of exposure to credit risks Analysis of exposure by geographic region 12/31/2017 12/31/2018 France 58,710 63,417 Belgium 219 337 Italy 6,161 6,099 Spain 487 356 Germany 371 644 United Kingdom 229 994 Switzerland 1,339 1,025 Norway 102 378 Other European Union countries 424 717 United States and Canada 513 673 Japan 39 38 TOTAL EXPOSURE 68,594 74,678 Analysis of exposure by category of counterparty 12/31/2017 12/31/2018 States 8,350 10,929 Local public sector 58,878 58,321 Other assets guaranteed by public sector entities 22 24 Financial institutions 1,344 5,404 TOTAL EXPOSURE 68,594 74,678 Analysis of exposure by category of instrument 12/31/2017 12/31/2018 Debt securities 2,808 N/A Loans and advances 62,588 N/A Loans at fair value through net income N/A 5,839 Bonds at fair value through equity N/A 1,563 Hedging derivatives 71 2,118 Loans and advances at amortized cost N/A 49,030 Bonds at amortized cost N/A 9,816 Guarantees 10 0 Financing commitments on loans 3,117 6,311 TOTAL EXPOSURE 68,594 74,678