1/conso/p45 61/us bag · and retirement funds from the scope of consolidation. their finan-cial...
TRANSCRIPT
![Page 1: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/1.jpg)
Financial Statements2002
46 Caisse des Dépôts Group
Consolidated Balance Sheet and Income Statement
92 Central Sector
Balance Sheet and Income Statement
116 Funds managed by Caisse des Dépôts
117 Balance Sheet and Income Statement of Saving Funds centralized by Caisse des Dépôts
147 Balance Sheet and Income Statement of the Retirement Funds CNRACL and IRCANTEC
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 45
![Page 2: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/2.jpg)
The activities of Caisse des Dépôts et Consignations derive from
its original mission as the legal depository for private funds that the
French legislature wanted to safeguard by ensuring that they were
managed in a way guaranteeing their protection.
The management of these funds, which are used to finance pub-
lic-interest investments and assist local development in France, also
led Caisse des Dépôts et Consignations to become a major player
in financial markets, which it does today through specialized sub-
sidiaries subject to market conditions.
This entity forms a public and decentralized Group, carrying out its
business in France and internationally, specialized in financial acti-
vities and services governed by public fiduciary obligations or exer-
cised freely in the competitive sector.
Public-interest missions
• Management of passbook savings accounts and financing for
public housing;
• Fiduciary management of major public retirement programs from
its decentralized offices in Angers and Bordeaux;
• Regulated banking and financial activities;
• Support for local development, urban policy, job creation and small
and medium-sized businesses.
Competitive businesses
• Finance activities under the auspices of EULIA, the holding com-
pany providing strategic governance for the competitive businesses
of Caisse des Dépôts et Consignations and the Caisses d’Epargne
Group, in particular:
–investment banking activities with the CDC IXIS Group: capital
markets and financing, asset management (financial, real estate
and private equity), banking and securities services;
– insurance and guaranty activities;
– real estate activities, mainly with Crédit Foncier de France Group;
• Life insurance with CNP Assurances;
• Services and engineering for local development in France with the
subsidiaries of C3D.
For purposes of accounting and financial presentation, Caisse des
Dépôts Group’s activities are divided according to their two princi-
pal missions:
• the fiduciary management of the funds entrusted to Caisse des
Dépôts et Consignations according to the rules defining the nature
of the services provided and the related financial conditions.
These funds are managed individually and include, in particular,
the Savings Funds centralized with Caisse des Dépôts et
Consignations and the management of public retirement funds;
• the direct activity performed by the Central Sector – Caisse des
Dépôts et Consignations’ financial and administrative entity, ma-
naged separately from the operations under mandate – and by
affiliated Groups, notably EULIA, CDC IXIS, C3D and CNP
Assurances, in France and internationally. This activity alone is
considered to constitute a group for the purpose of preparing con-
solidated financial statements drawn up in accordance with
accounting standards applicable to credit institutions.
The consolidating entity is the Central Sector and, depending on
the level of control, subsidiaries are consolidated under the full or
proportional method, or accounted for by the equity method.
This distinction is evidenced by the exclusion of the Savings Funds
and Retirement Funds from the scope of consolidation. Their finan-
cial statements are presented separately.
46
Consolidated Financial Statements
Notion of Group
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 46
![Page 3: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/3.jpg)
Introductory note
The activities of Caisse des Dépôts et Consignations comprise two
main missions:
• the direct business of the Central Sector – the financial and admi-
nistrative entity of Caisse des Dépôts et Consignations which is
managed separately from the operations under mandate – and of
the subsidiaries and long-term equity holdings attached to it, nota-
bly EULIA, the C3D and CNP Assurances groups, and the Caisse
des Dépôts et Consignations departments that have been spun off
into subsidiaries. Following the agreement with the Caisses
d’Epargne savings banks signed in June 2001, Caisse des Dépôts
et Consignations’ competitive financial subsidiaries have been
brought together, through EULIA, with the national subsidiaries of
the Caisses d’Epargne, which are consolidated by the proportio-
nal method;
• the management of the funds entrusted to it. The accounting
structure of Caisse des Dépôts reflects the nature of the relation-
ships existing between the Public Institution and these funds. A
series of legal, regulatory and contractual documents defines the
nature of the services provided by Caisse des Dépôts and their
remuneration. The accounting systems used make it possible to
identify the resources of each fund, their uses and the earnings
generated. Therefore, a balance sheet and an income statement
are drawn up for each fund. These funds, which consist mainly of
Savings Funds centralized by Caisse des Dépôts, include deposits
taken on the Livret A passbooks of the Caisses d’Epargne, Livrets
d’Epargne Populaire passbooks for low-income savers, the Livret
Bleu passbooks of Crédit Mutuel and the deposits collected by La
Poste (Livret A, Livret B and CNE home-purchase savings plans),
as well as deposits on Codevi accounts. This mission also includes
the management of retirement funds and other organizations.
This section presents financial information relating tothe first of these missions:• the audited consolidated balance sheet and income statement of
Caisse des Dépôts Group;
• the audited balance sheet and income statement of the Central
Sector reporting Caisse des Dépôts’ own activities.
Audit of the financial statements
Although not a legal requirement given its status, Caisse des Dépôts
has chosen to have its financial statements audited in accordance
with ordinary law in order to guarantee that the accounting and
financial information provided is of the quality and transparency
required by the nature and volume of its activities.
The independent auditors have issued unqualified audit opinions
on the 2002 financial statements of the Central Sector and the
consolidated financial statements of the Caisse des Dépôts Group.
This is also the case, in particular, for the accounts of the Savings
Funds, and of the CDC IXIS, C3D and CNP Assurances Groups.
These accounts have been published separately.
Caisse des Dépôts Group - Annual Report 2002 47
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 47
![Page 4: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/4.jpg)
48
Consolidated Financial Statements
Consolidated Balance Sheet
(EURO MILLIONS) Notes 12.31.2002 12.31.2001
ASSETSInterbank and similar transactions 128,980 119,865Cash, central banks and post office banks 3,844 6,103Public-sector securities and similar 3 21,354 19,834Advances and loans to financial institutions 1 103,782 93,928Customer transactions 34,454 30,486Overdrafts 2 2,867 3,056Commercial loans 2 11 323Other loans to customers, lease financing and similar agreements 2 31,576 27,107Bonds, equities, other fixed and variable income securities 83,573 81,495Bonds and other fixed income securities 3 65,425 65,441Equities and other variable income securities 3 18,148 16,054Investments of insurance companies 4 63,332 60,033Long-term-equity holdings, shares in related undertakings,other long-term investments 4,053 4,039Long-term equity holdings 5 2,950 2,766Investments accounted for by the equity method 6 1,103 1,273Tangible and intangible fixed assets 7 5,557 5,323Goodwill on acquisition 8 896 1,152Accruals, deferrals and other assets 9 28,346 25,860
TOTAL 349,191 328,253
LIABILITIESInterbank and similar transactions 126,740 115,918Central banks and post office banks 23 35Advances and loans from financial institutions 10 126,717 115,883Customer transactions 43,658 47,974Customer deposits 11 25,033 28,322Other customer advances and loans 11 18,625 19,652Debt securities 51,199 43,049Cash certificates 12 1 1Interbank and money market instruments 12 30,778 24,693Bonds and similar debt securities 12 20,420 18,355Technical provisions of insurance companies 13 60,840 57,741Accruals, deferrals and other liabilities 14 50,458 46,826Goodwill on acquisition 8 11 22Provisions for risks and charges 15 829 761Subordinated debt 1,315 1,352Fund for General Banking Risks (FGBR) 16 676 948Minority interests (excluding FGBR) 16 962 718Group share of retained earnings (excluding FGBR) 16 12,503 12,944Consolidated and other reserves 11,793 11,587Income for the year 710 1,357
TOTAL 349,191 328,253
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 48
![Page 5: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/5.jpg)
Caisse des Dépôts Group - Annual Report 2002 49
(EURO MILLIONS) 12.31.2002 12.31.2001
Financing, guarantee and securities commitments given
Financing commitmentsTo financial institutions 11,478 13,260To customers 15,932 19,424GuaranteesTo financial institutions 9,939 6,751To customers 10,713 14,486Securities transactionsSecurities to be delivered 607 1,943Commitments given by insurance companies 141 105
Financing, guarantee and securities commitments received
Financing commitmentsFrom financial institutions 10,308 2,491GuaranteesFrom financial institutions 3,017 3,083From customers 2,056 2,442Securities transactionsSecurities to be received 1,608 2,734Commitments received by insurance companies 1,291 1,414
Other commitmentsOther commitments given 19,356 4,993Other commitments received 5,088 8,123
Consolidated Off-Balance Sheet Commitments
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 49
![Page 6: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/6.jpg)
50
Consolidated Financial Statements
Consolidated Income Statement
(EURO MILLIONS) Notes 2002 2001 2001Proforma Reported (*)
Interest and similar revenues 10,399 9,736 8,943Treasury and interbank transactions 19 4,779 4,521 4,699Customer transactions 20 1,722 1,438 534Bonds and other fixed income securities 21 2,462 2,307 2,027Other interest and similar revenues 1,436 1,470 1,683Interest and similar expenses (11,324) (10,612) (10,384)Treasury and interbank transactions 19 (5,656) (4,870) (5,045)Customer transactions 20 (916) (1,074) (1,075)Bonds and other fixed income securities 21 (2,548) (2,653) (1,916)Other interest and similar expenses (2,204) (2,015) (2,348)Revenues from variable income securities 22 469 493 518Commissions (revenues) 23 955 963 1,228Commissions (expenses) 23 (218) (272) (188)Gains or losses on trading security transactions 24 1,534 1,348 1,714Gains or losses on available-for-sale security transactions and similar 25 209 1,198 1,410Other net operating and banking revenues and expenses 26 404 339 271Gross margin on insurance activities 27 750 622 505Net income from other activities 28 1,607 1,316 1,316
NET BANKING INCOME 4,785 5,131 5,333
Operating expenses (3,408) (3,018) (3,189)Payroll expenses 29 (2,300) (2,075) (2,143)Other administrative expenses (1,532) (1,399) (1,488)Administrative expenses rebilled 424 456 442Net amortization, depreciation and provision charges 30 (232) (212) (211)
GROSS INCOME FROM OPERATIONS 1,145 1,901 1,933
Cost of risk 31 (79) (47) (41)
NET INCOME FROM OPERATIONS 1,066 1,854 1,892
Net income from investments accounted for by the equity method 6 36 69 58Gains or losses on fixed assets 32 31 191 186
NET RECURRING INCOME BEFORE INCOME TAX 1,133 2,114 2,136
Net non-recurring income (expenses) 6 22 1Income taxes 33 (377) (557) (585)Net amortization of goodwill on acquisition 8 (231) (69) (77)Net increase in FGBR 266 (62) (45)Minority interests (87) (58) (73)
NET INCOME, GROUP SHARE 710 1,390 1,357
* Note 36 of the Notes to the financial statements describes the transition from the 2001 reported income statement to the 2001 proforma income statement.
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 50
![Page 7: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/7.jpg)
Caisse des Dépôts Group - Annual Report 2002 51
Notes to the Consolidated Financial StatementsHighlights
The Caisse des Dépôts Group recorded consolidated net income
of €710 million in 2002, down 49% relative to the 2001 proforma
result.
This sharp decrease in net income was largely due to the severe
financial market downturn as well as the non-recurring income reflec-
ted in the 2001 results, including capital gains on the disposal of
shares of CNP Assurances, CDC IXIS and Sicovam. In response to
the market contraction, and consistent with its usual prudent stra-
tegy, Caisse des Dépôts et Consignations and its financial subsi-
diaries significantly increased the provisions on their long-term equity
portfolios. Thus the Central Sector alone allocated a net €928 mil-
lion to provisions for the securities in the portfolios.
In the first half of 2002, Caisse des Dépôts et Consignations wrote
back €259 million from the Fund for General Banking Risks (FGBR).
This amount corresponded to allocations to the FGBR made in the
years 1998 through 2000, reflecting prudent portfolio management
by the Public Institution, given the non-recurring nature of a portion
of its results during the market bubble.
After analyzing the business climate, Caisse des Dépôts et
Consignations also wrote down several assets. Exceptional amor-
tization was taken on the goodwill arising from the October 2000
acquisition of CDC IXIS Asset Management North America (formerly
Nvest). This exceptional amortization trimmed €155 million from
the Group’s consolidated net income. An additional €71 million
write down of deferred tax assets (group share) was also made.
Aside from market-related influences, changes within the Group
affected the 2002 results:
• C3D Group’s contribution to net banking income was up sharply,
as this subsidiary continued its selective expansion strategy. Some
of the highlights during the year included the partnership agree-
ment between Transdev and RATP, the successful cash takeover
bid by Compagnie des Alpes on Grévin & Co., and the acquisi-
tion of ELLUL, a real estate development company.
• The insurance division, with gains driven by CNP Assurances and
its subsidiary Caixa Seguros, whose results were consolidated
for a full year in the 2002 financial statements.
Finally, CDC IXIS refocused on its core business last year while EULIA
was effectively established.
Income Statement
Net banking income (NBI) contracted by 6.7% to €4,785 million in
2002, compared with €5,131 million the previous year. This decline
was due in large part to the establishment of provisions for the
Central Sector’s securities portfolio, specifically the non-recurring
portion of the allocation. Adjusting for these non-recurring provi-
sions, which involved mainly the TMT and insurance sectors, NBI
totaled €5,559 million, up 8% relative to 2001.
This increase in NBI, excluding non-recurring items, reflects the
increased revenues of several units:
• CNP Assurances, whose consolidated revenues rose by 6.2% on
the year, underpinning a €698 million contribution to NBI of Caisse
des Dépôts Group;
• C3D Group, whose consolidated revenues increased by 23%
through organic growth and the integration of new entities, contri-
buted €1,779 million to NBI.
• Several EULIA entities, in particular Crédit Foncier de France,
where customer loan volumes enjoyed sustained growth and
which benefited from favorable interest rate trends.
Gross income from operations totaled €1,145 million, down 40% rela-
tive to 2001. Given the aforementioned non-recurring items, this decline
reflects the increase in operating expenses and net amortization
charges of 12,7% in the year, a total of €410 million largely as a result
of the expanded consolidation scope (CNCE’s financial activities contri-
buted to CDC IXIS, CNP Assurances with Caixa Seguros, C3D with
Grévin and ELLUL) and the absence of large-scale write-backs from
provisions as in 2001 (euro, Y2K, creation of CDC IXIS).
Net recurring income before income tax contracted by 46% to
€1,133 million, exacerbating the decline in gross income from ope-
rations on account of the absence of income from fixed asset dis-
posals, which were significant in 2001.
Income tax fell by €180 million, given the decline in pretax income
and the tax-exempt status of FGBR write-backs.
The exceptional goodwill amortization recorded on CDC IXIS AM
North America assets led to the sharp increase in goodwill amorti-
zation, which totaled €232 million in 2002, compared with €69 mil-
lion the previous year.
In 2002, €266 million were written back to income from the FGBR
whereas in 2001, €62 million were transferred to this fund. This
change resulted mainly from the decision to write back €259 mil-
lion from the FGBR to the Central Sector income statement.
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 51
![Page 8: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/8.jpg)
52
Consolidated Financial Statements
Lastly, the group share of consolidated net income totaled €710
million. The Central Sector and its direct subsidiaries (the Caisse
des Dépôts et Consignations division) contributed €227 million,
EULIA - CDC IXIS added €142 million, C3D Group accounted
for €107 million and CNP Group contributed €234 million.
The Caisse des Dépôts et Consignations division’s contribu-
tion fell by 64% compared to 2001, or by 7.9% after adjus-
ting for non-recurring items. Although at €571 million, the
CNP Assurances Group’s published consolidated net income
was up by a substantial 8.1% on 2001 recurring net income,
its contribution was down 6% given the non-recurring items
recorded the previous year. C3D Group, on the other hand,
saw its contribution to consolidated net income rise by 43%.
EULIA’s contribution fell by 68% because of its CDC IXIS sub-
sidiary. The unfavorable market conditions in 2002 had a sub-
stantial negative impact on CDC IXIS, which established major
provisions on its equity portfolio, wrote down the value of its
CDC IXIS AM North America asset management subsidiary
and reduced its disposal program for marketable securities.
It should be noted, however, that several EULIA subsidiaries
recorded clear gains, including Crédit Foncier de France,
Ecureuil Vie, Ecureuil IARD and EULIA Caution...
Balance SheetTotal consolidated assets increased by €21 billion to €349 billion
in 2002, a 6.4% increase on the year.
Unlike in 2001, the increase in total assets did not result from any
changes in consolidation scope.
On the asset side, interbank transaction volume rose by 7.6% to
€129 billion, driven higher by the contributions from CDC IXIS and
Martignac Finance. Their interbank loan volume increased by €3.9
billion and €6.9 billion, respectively. Martignac Finance disposed
of its bond portfolio and followed up by developing its interbank len-
ding business.
Customer transaction volume rose by €4.0 billion, or 13%, to
€34.5 billion. The Central Sector accounted for €1.9 billion of this
increase, driven by substantially higher transaction volume from
Acoss and a €0.9 billion increase in the CFF contribution relative to
the previous year. With a €1.2 billion increase in customer tran-
saction volume, CDC IXIS has demonstrated the rapid growth of
its financing activities.
The securities portfolio totaled €83.6 billion, up 2.6% from €81.5
billion.
Insurance company investments rose by €3.3 billion, or 5.5% com-
pared to the previous year. CNP Assurances accounted for all of this
increase through a 6.2% increase in revenues (net premium income).
Higher revenues automatically result in increased investments.
On the liabilities side, interbank transaction volume rose by 9.3% to
reach €126.7 billion. The Central Sector and CDC IXIS CM contri-
buted €3.9 billion and €5.4 billion, respectively, to this increase. The
heightened reliance on interbank resources was due to the refinan-
cing strategy of these entities and the especially favorable market
conditions characterized by historically low interest rates.
The nearly 9.0% decrease in customer transactions, or €4.3 billion,
was due for the most part to the contraction in the Central Sector’s
volume of ordinary deposits. Customer transactions totaled €43.7
billion.
Debt securities increased by 18.9%, or €8.2 billion, to €51.2 bil-
lion as of December 31, 2002, compared with €43 billion one year
earlier. CDC IXIS and CFF accounted for the bulk of this increase,
adding €6.1 billion and €2.1 billion, respectively. In the former case,
the increase involved the issuance of negotiable debt securities; in
the latter, obligations foncières covered bonds issued by Compagnie
de Financement Foncier, a subsidiary of CFF, to back the Group’s
commercial development.
Insurance company technical reserves totaled €60.8 million as of
December 31, 2002, compared with €57.7 billion the previous year.
CNP Assurances accounted for €60.5 billion of these reserves. Last
year’s 5.3% increase in technical reserves, a total of €3.1 billion, reflec-
ted the growth in CNP Assurances’ revenues.
After taking into account the group’s share of net income for the
year (€710 million), dividends paid during the year (€925 million)
and other changes (a reduction of €226 million, of which €243 mil-
lion attributable to the change in foreign currency translation reserves
due mainly to the U.S. subsidiaries) Caisse des Dépôts Group’s
share of shareholders' equity excluding the FGBR totaled
€12.5 billion.
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 52
![Page 9: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/9.jpg)
Caisse des Dépôts Group - Annual Report 2002 53
Accounting Principles used in preparing the ConsolidatedFinancial Statements of Caisse des Dépôts GroupThe consolidated financial statements have been prepared in accor-
dance with generally accepted accounting principles applicable to
French banking and financial institutions.
Principal Policies for accounting andpresentation of the ConsolidatedFinancial Statements
1 – Alliance between Caisse des Dépôts Groupand Caisse d’Epargne GroupOn July 26, 2001, the Caisse d’Epargne Group and Caisse des
Dépôts Group signed an agreement in principle to combine their
competitive financial businesses (retail banking, investment ban-
king and financing, insurance and real estate), thus taking a deci-
sive step forward toward strengthening their existing partnership.
This combination was realized through the contribution of the two
Groups’ competitive businesses to EULIA, a joint venture, as well
as CNCE’s contribution of its Finance division to CDC IXIS.
All these contributions were made effective December 31, 2001.
The shareholders’ agreement dated December 20, 2001 stipu-
lates the framework of the renewed partnership. EULIA is to pro-
vide strategic direction for the Alliance, notably concerning its busi-
ness strategy, national and international expansion and the
implementation of synergies.
Given the structure of the transaction and the existence of an agree-
ment between the shareholders of EULIA extending an existing part-
nership, Caisse des Dépôts and CNCE chose to avail themselves
of the provisions of Regulation 2000-08 issued by Comité de la
Réglementation Comptable (CRC). This adapts Article 215
(“Alternative method”) of CRC regulation 99-07 to transactions resul-
ting in the joint control of an undertaking by pooling activities car-
ried on beforehand under the shareholders’ common control.
Given that the above consists in a pooling of interests, EULIA and
its subsidiaries have been proportionally consolidated in the conso-
lidated financial statements prepared by Caisse des Dépôts
and CNCE.
2 – Comparability of the financial statementsFor comparative purposes, a 2001 proforma income statement was
prepared that factors in the impact of the EULIA transactions as if
they had been made effective January 1 of that year.
Thus the 2001 proforma income statement integrates the compa-
nies contributed by the Caisse d’Epargne Group, changes in per-
centage holdings as well as changes in the consolidation methods
resulting from the Alliance transactions.
Elements permitting comparisons to be made between the publi-
shed and proforma consolidated financial statements for the year
ended December 31, 2001 are provided in Note 36.
In addition, some commissions related to asset management activi-
ties were reclassified in 2002. In accordance with the Banking
Commission’s March 28, 2002 Regulation 2002-02, expenses rela-
ted to discounts on financial services commissions are now entered
under net banking income to the extent that the discount is offered in
exchange for a volume of business or a recurring service brought in
by new business providers and that the establishment has no direct
ties to the client. Concurrent with this change in presentation, several
commissions related to securities transactions (custodian fees, account
management and valuation fees, etc.) previously entered under ope-
rating expenses were reclassified under commission expenses.
In order to maintain the comparability of the financial information
reported in prior years, the impact of this reclassification is detailed
in Note 36.
Finally, the Caisse des Dépôts Group’s application of the CRC’s
December 7, 2000 regulation 2000-06 relating to liabilities had no
material impact on the retained earnings at the beginning of the
period on January 1, 2002 and has no bearing on the comparabi-
lity of the reported consolidated financial statements.
Consolidation Principles and Policies
1 – Consolidation methods and scope of consolidation The consolidated financial statements include the accounts of the
Central Sector of Caisse des Dépôts, the consolidated accounts
of the sub-groups and the accounts of subsidiaries, whenever their
consolidation is material to the consolidated accounts of the enti-
ties included in the scope of the consolidation.
Those companies whose contribution to the results of the sub-
group to which they belong is considered material, and newly for-
med or acquired companies for which strong growth is expected,
are also consolidated.
➔ Full consolidationUndertakings over which the Group exercises full control and whose
activity is either of a financial nature or an extension of the Group’s
activities are fully consolidated.
Full control is defined as the ability of an undertaking to direct the
financial and operational policies of another undertaking with a view
to gaining economic benefits from its activities.
It results from the ownership of more than one half of the voting
rights of an undertaking, or from the appointment for two succes-
sive years of more than one half of the members of the governing
bodies, or from the power to exert a dominant influence by virtue
of company bylaws or agreements.
➔ Proportional consolidationCompanies over which the Group exercises joint control are pro-
portionally consolidated. Joint control is defined as sharing the
control of an undertaking jointly run by a limited number of partners
or shareholders, such that the financial and operating policies result
from their agreement.
➔ Equity method consolidationUndertakings over which significant influence is exerted are accoun-
ted for under the equity method. Significant influence results from the
ability to take part in determining the financial and operational policies
of an undertaking without exercising control.
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 53
![Page 10: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/10.jpg)
➔ Special case of ad hoc entitiesWhen the Group or a group company controls an undertaking in
substance, notably by virtue of contractual agreements or provisions
in company bylaws, the undertaking is consolidated even if there is
no ownership of shares. The existence of control in substance is
assessed using the following criteria, as defined by CRC regulation
99-07: decision-making and management powers in respect of the
daily operations of a special purpose entity ad hoc or in respect of
its assets; and the ability to obtain the majority or all of the econo-
mic benefits and be exposed to a majority of the risks.
Entities that carry out their activities under a fiduciary relationship,
where management is carried out on behalf of third parties and in
the interest of the various parties involved, are not consolidated.
The following types of companies are not consolidated: semipublic
companies (SEMs and SAIEMs) and public housing corporations
(HLMs), for which access to their assets and profits is restricted. As
regards insurance activities, controlled pooled investment vehicles
and transparent companies with property rental activities represen-
ting policyholder liabilities are not consolidated.
The accounts of consolidated entities are generally prepared to
December 31. Companies preparing their accounts more than three
months before or after this date are consolidated using interim
accounts as of December 31.
2 – Changes in the scope of consolidationAs of December 31, 2002, the scope of consolidation comprised the
Central Sector of Caisse des Dépôts, 18 ad hoc entities (of which five
mutual funds and similar entities), a debt securitization fund and 837
other direct and indirect subsidiaries, for an overall total of 857 enti-
ties, compared with 795 entities one year earlier.
The most significant consolidation changes at Caisse des Dépôts
last year were as follows:
• the acquisition of the 7.23% equity interest in BDPME previously
held by Banques Populaires Group;
• the reorganization of the IT Economic Interest Grouping, which
resulted in the sale of a 60% interest in Informatique CDC to CDC
IXIS and CNP Assurances in equal measure;
• the consolidation of the CDC PME Croissance investment fund.
The main changes in the scope of consolidation at the level of the
sub-groups are indicated below:
➔ EULIA sub-group• Sale of CFF Group’s 20.9% interest in SIMCO to Gecina;
• Consolidation of the Teddy debt securitization fund.
➔ CDC IXIS sub-group• Sale of Compagnie EMGP to C3D Group;
• Merger of CDC IXIS with SPID and transformation of CDC GmbH
into a branch of CDC IXIS;
• Consolidation of new controlled ad hoc entities, including the CLEA
2 securitization entity;
• Exclusion from the scope of consolidation of ad hoc entities control-
led by CIFG, whose consolidation would not present a fair pic-
ture. This involves mainly ad hoc entities controlled by the CIFG
sub-group in the context of their insurance activities;
• Acquisition of 38.6% of Nexgen Financial Holdings Group on
December 11, 2002. Given the absence of any material impact
on the Group’s 2002 financial statements, this entity will be conso-
lidated starting in 2003.
➔ C3D sub-group• Following a cash takeover bid, Compagnie des Alpes Group took
control of Grévin et Compagnie, which is now fully consolidated;
• Acquisition from CDC IXIS Group of Compagnie EMGP, which at
year-end is fully consolidated;
• Acquisition by Capri from the Caisse d’Epargne Languedoc
Roussillon of an equity interest in ELLUL, which resulted in the full
consolidation of 36 companies.
➔ CNP Assurances sub-groupNo material transactions were made in 2002.
3 – GoodwillWhen an undertaking is consolidated for the first time, the difference
between the cost of acquisition of the shares and the total restated
value of the assets, liabilities and off-balance sheet items constitutes
goodwill on acquisition.
The difference between the value retained for an item in the consoli-
dated balance sheet and its carrying value in the individual balance
sheet of the acquired undertaking constitutes a fair value adjustment.
These differences are amortized, written down or written back to
income using the rules normally applicable to the corresponding items.
Goodwill on acquisition, which may be positive or negative, is amor-
tized through the income statement over a period that reflects the
assumptions made and the objectives set at the time of the acquisi-
tion, but does not exceed 20 years.
If material unfavorable changes occur affecting the assumptions on
which the amortization schedule is based, the rate of amortization of
goodwill on acquisition is increased.
4 – Deferred taxesDeferred taxes are recognized when a temporary difference is iden-
tified between the restated carrying amount and the tax base of
assets and liabilities.
They are calculated using the liability method, whereby deferred
taxes from prior years are adjusted to account for changes in tax
rates. The corresponding impact is recognized under deferred tax
in the consolidated income statement.
The deferred tax rates applied in 2002 for France were 35.43% for
the full rate and 20.20% for the reduced rate. These rates were
unchanged from 2001.
Deferred taxes are calculated separately for each tax entity. In accor-
dance with the rule of prudence, deferred tax assets are recogni-
zed only if there is a strong likelihood that they may be set against
future tax liabilities.
5 – Foreign currency translationBalance sheet items and off-balance sheet commitments of foreign
companies are translated at the year-end rates, with the exception
of equity capital, which is maintained at the historical rate. Income
statements are translated on the basis of the average exchange
rates during the year. The resulting differences are entered in conso-
lidated reserves under “Translation reserve”.
54
Consolidated Financial Statements
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 54
![Page 11: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/11.jpg)
6 – Intra-group transactionsIntra-group accounts as well as income and expenses resulting
from transactions within the Group are eliminated on consolidation
when they are material and whenever they relate to fully or propor-
tionally consolidated subsidiaries.
Securities issued by group companies are also eliminated from the
balance sheet if they are not part of the trading portfolio.
7 – Rental and leasing transactions with purchase option and lease-financed goodsRental and leasing transactions are entered in the company
accounts according to their legal nature.
Under accounting regulations, transactions that are in fact compa-
rable to credit transactions must be restated in the consolidated finan-
cial statements in such a way as to recognize their economic purpose.
Rental and leasing transactions with a purchase option are the-
refore entered on the consolidated balance sheet with the out-
standing amount determined using the so-called financial method.
The unrealized reserve, which consists of the difference between
the reported amortization and the financial amortization of the
invested capital, is entered in consolidated reserves net of defer-
red taxes.
Fixed assets acquired through a lease or similar agreement are resta-
ted for the purpose of consolidation and entered on the balance
sheet as if they had been acquired through borrowing.
Presentation and accounting Policies– Banking and financial Activities
1 – Income statement itemsInterest and commissions classified as such are recorded on an
accruals basis. Commissions not classified as interest are recor-
ded on a cash basis.
2 – Foreign currency denominated transactionsForeign currency denominated assets, liabilities and off-balance
sheet commitments have been translated at exchange rates on
December 31, 2002.
Currency gains and losses from ordinary currency transactions are
recorded in the income statement.
Spot foreign exchange transactions are valued at the spot rate.
Forward currency transactions, other than hedging, are valued at
the rate for the remaining period. Forward currency transactions for
hedging purposes are valued by symmetry with the item hedged.
Premiums and discounts related to hedged forward currency tran-
sactions are taken as income and expenses over the period remai-
ning until the maturity of these transactions.
3 – Advances and loans to financial institutionsand customersThese items include loans, overdrafts and securities purchased
under collateralized and uncollateralized fixed resale agreements.
➔ LoansLoans are recorded as assets in the balance sheet at redemption value.
Accrued interest is recognized as income over the life of the loan.
Loans with non-collection risks are transferred to non-performing loans,
generally when unpaid due amounts are more than three months old.
Provisions are made against the interest and capital on these loans after
taking into account the type of collateral received.
➔ Securities purchased under collateralized and uncollateralized fixed resale agreementsThese securities are recorded as assets in the balance sheet on the
line representing the receivable arising from the transaction. The
corresponding income is recognized on a time basis. Securities
received as collateral and subsequently sold are recorded as liabi-
lities and valued at market value.
4 – Securities and securities transactionsSecurities are classified under accounting categories correspon-
ding to the institution’s activities.
➔ Trading securitiesTrading securities include in particular treasury bills and negotiable
debt securities. They are expected to be held for periods not excee-
ding six months. They are highly liquid and are marked to market.
Valuation differences are recognized in the income statement.
When the Group is in a market-making position and the secu-
rity is actively traded, these securities may be held in the tra-
ding portfolio beyond the regulatory period of six months. This
is also the case when these securities are under specialized
management to hedge instruments valued on a marked-to-
market basis.
➔ Available-for-sale securitiesAvailable-for-sale securities represent securities that are not to
be held until maturity or for trading purposes. They also include,
except in the case of market-making activities, trading securities
reclassified after being held for a period of more than six months.
In this case, the reclassification is made at market value on the
date of the transfer.
Available-for-sale securities are treated according to the FIFO
method and are valued as follows:
– Bonds and equities: unrealized losses calculated based on their
year-end closing price are taken to expenses through a provision
for impairment;
– Treasury bills, negotiable debt securities, and interbank instru-
ments: provisions are made on the basis of the individual situa-
tion of the issuer and market indicators.
Any premiums and discounts on fixed-income securities are writ-
ten off over the residual life of the asset on a yield-to-maturity basis
for negotiable debt securities and on a straightline basis for other
securities.
➔ Investment securitiesThis portfolio comprises fixed-income securities that are intended
to be held until maturity, and financed with dedicated long-term
resources or covered through hedging instruments.
Unrealized capital losses resulting from differences between book
and market values are not covered by provisions. However, if appli-
cable, counterparty risks are taken into account in determining the
Caisse des Dépôts Group - Annual Report 2002 55
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 55
![Page 12: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/12.jpg)
value of these securities at year-end. The difference between the
acquisition price and the redemption value of the securities (pre-
mium or discount) is amortized using the yield-to-maturity method
for negotiable debt securities and the straight-line method for other
securities.
➔ Medium-term portfolio securities (TAP)Medium-term portfolio securities are investments made on a regu-
lar basis with the aim of realizing a capital gain in the medium term
but without the intention of investing on a long-term basis in the deve-
lopment of the business or taking an active part in the operational
management of the issuing undertaking.
These securities are recorded at cost.
A provision is taken in respect of any permanent impairment in the
value of the security due to a fundamental deterioration in the under-
taking’s position.
Fair value is determined taking into account the general economic
outlook for the issuer and the remaining period for which the secu-
rities will be held. It is calculated using a multi-criteria approach,
with a predominant role given to the market price over a sufficiently
long term.
➔ Other long-term securities (ATDLT)No securities are held by the Group that would be classified under
this accounting category.
➔ Non-consolidated equity securitiesNon-consolidated equity securities are recorded at acquisition cost.
They are valued on the basis of their fair value, with reference to
various criteria such as net assets, potential return, and capitaliza-
tion of earnings. Provisions are constituted to reflect any perma-
nent impairment.
➔ Lending and borrowing of securitiesSecurities are valued using the rules applicable to the portfolio of
origin.
Borrowed securities are recorded as an asset under trading secu-
rities at their market value on the day they were borrowed, and as
a liability to recognize the debt towards the lender. They are valued
on the basis of their year-end market value.
Loans and borrowings guaranteed by cash and notes are treated
in the same way as collateralized resale agreements.
Income from these transactions is recognized on an accruals basis
in the income statement.
➔ Issues indexed on fund performanceThese consist in structured issues, the most often with a zero cou-
pon in fine, that are indexed on fund performance. The index is hed-
ged by the purchase of units in the fund whose performance accrues
entirely to the subscribers at maturity.
The overall financial engineering margin on these transactions
is estimated by reference to the market value of the units in the
fund and the present value of future cash flows relating to these
issues as well as to future management expenses. As required
by applicable regulations, extremely prudent assumptions are
used regarding early redemption when the valuation is based on
models.
5 – Forward financial instrumentsIn application of the strategy defined for the development of its tra-
ding activities and the management of market risks, Caisse des
Dépôts Group operates on all organized and over-the-counter mar-
kets for interest rate, currency and securities futures and options.
In France as well as abroad, these transactions are entered into as
part of specific or general hedging, or in connection with speciali-
zed management of trading portfolios.
For all of these instruments, whatever the management policy pur-
sued, the face value of the futures and options contracts, the value
of the underlying assets, or the exercise price is recorded off-balance
sheet.
The method of accounting for charges and revenues on these ins-
truments depends on the management policy pursued.
➔ Interest rate and currency swaps• Hedging transactions: charges and revenues resulting from
hedging instruments (taken singly or as a homogeneous
group) are recognized symmetrically with the revenues and
charges resulting from the transaction hedged. Charges and
revenues on forward instruments qualified as general interest
rate hedges are recorded on an accruals basis through the
income statement.
• Specialized portfolio management transactions: contracts are
valued at year-end at their market value. In accordance with regu-
lations, the market value takes into account an adjustment for
counterparty risks and the discounted value of future manage-
ment costs. The total net valuation difference is recognized in the
income statement.
➔ Other interest rate and currency transactionsThese transactions relate primarily to futures and options.
• Hedging transactions: charges or revenues are recognized in the
income statement on a symmetrical basis with the revenues or
charges on the transaction hedged.
• Other transactions: these transactions are marked to market.
Unrealized gains or losses at year-end are recognized in the income
statement.
In order to give a fair view of the value of these instruments, those
that are not highly liquid are also valued by reference to their theo-
retical market value.
➔ Complex transactionsComplex transactions are synthetic combinations of instruments
of various types, characteristics and pricing methods.
Each component of the transaction is recorded on- or off-balance
sheet according to the nature of the underlying.
The result is considered globally and recorded through one entry
reflecting the economic nature of the transactions, as if they were
a single instrument. In the case of totally new products, when not
governed by explicit regulation, the accounting approach for reco-
gnition of any gains and losses is based on similar existing products.
The method of accounting for gains and losses depends on the
management policy pursued:
• Hedging transactions: for reasons of prudence, notably when
market liquidity is low, results are recorded on an accruals basis.
A provision is made when market value is negative.
56
Consolidated Financial Statements
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 56
![Page 13: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/13.jpg)
• Trading portfolio or transaction for which the result can be consi-
dered as an arrangement fee: the result is recognized when the
transaction is initiated. A discount is applied to take into account
future management expenses and possible counterparty risks.
➔ Credit derivativesCredit derivatives are instruments whose purpose is to transfer the
credit risk in respect of an asset from one counterparty to another,
generally in exchange for a premium paid at the outset or by in-
stallments. In the case of events predefined in the related contract,
known as credit events, the seller of the cover is called upon to bear
the cost under the terms defined in the contract.
There are three categories of credit derivatives: “Credit Default
Swaps”, “Total Rate of Return Swaps” and “Credit Linked Notes”
that can be likened to options, interest rate swaps and securities
swaps, respectively.
In the absence of a specific accounting text, the accounting
approach for credit derivatives is based on their analogy to existing
products with which they can be likened and taking into account
the management policy being pursued:
• Hedging transactions: charges and revenue are recognized sym-
metrically with the revenue and charges on the transaction hed-
ged;
• Isolated open position transactions undertaken as part of a long-
term holding: the result is booked on an accruals basis. A provi-
sion is made against unrealized losses.
• Specialized portfolio management transaction: when market liqui-
dity for the derivative is ensured, contracts are valued at market
price with a discount applied to take into account possible coun-
terparty risks and the present value of future management expenses.
Otherwise, contracts are valued using the applicable regulations for
the underlying transactions, which involves valuing them at cost
and, where necessary, establishing a provision for impairment.
➔ Market valuesWhen the market price of the instruments or the valuation para-
meters are not officially listed, alternative valuation methods are
used, making reference to one or more of the following compo-
nents: price confirmation by brokers or outside counterparties,
comparison with actual transactions and research by issuer or
instrument category.
When the instruments are valued using models, these integrate
the parameters that affect the valuation of the instruments, in par-
ticular the liquidity level of the related markets. Applying a prudent
approach, the calculations are adjusted to take account of the
weaknesses of some of these parameters, in particular their rele-
vance over a long period.
6 – Tangible and intangible fixed assetsFixed assets are valued at cost. In the case of buildings, initial fix-
tures, fittings and installation expenditure may be added to the cost
of acquisition.
Depreciation is calculated using the straight-line method and accor-
ding to the type and quality of the building, over its estimated use-
ful life. Thus, buildings are depreciated over 20 to 50 years. Partial
renovation work on old buildings is depreciated over periods of bet-
ween 15 and 25 years.
Installations, improvements and fittings are generally written off over
10 years.
Market shares acquired are not amortized. They are, however, per-
iodically subjected to an impairment test based on the valuation of
the benefits arising from the competitive position held.
As for insurance activities, the fair value of the contracts portfolio,
which corresponds to the estimated present value of future distri-
butable profits attributable to the portfolio at the time of the acqui-
sition, is amortized for like groups of contracts using a schedule that
is updated regularly and reflects the flow of future profits over a rea-
sonable period.
As a general rule, software is written off over 3 years, with a maxi-
mum of 5 years.
Forests are subject to provisions for impairment as required. In the
event of an irreversible loss, an exceptional depreciation charge is
taken for the amount of the loss.
7 – Investment property risksCaisse des Dépôts Group owns a large portfolio of rental proper-
ties held as long-term investments.
Market values are determined regularly by independent appraisers.
A provision is made for any permanent impairment in value of these
properties, representing the difference between carrying value and
market value.
8 – Advances and loans from financial institutions and customer depositsThese liabilities include deposits, loans and securities sold under
collateralized and uncollateralized fixed repurchase agreements.
➔ LoansLoans are recorded in the balance sheet at redemption value and
accrued interest is charged to the income statement over the life of
the loan.
➔ Securities sold under collateralized fixed repurchase agreementsThe debt is recorded under liabilities. The securities are maintained in
their original portfolio and valued according to the rules applicable to
that portfolio. The corresponding interest is recognized as it is accrued.
9 – Debt securitiesDebt securities are reported according to the type of security: inter-
bank and money market instruments (commercial paper, certifi-
cates of deposit and medium-term notes), bonds and similar debt
securities.
Accrued interest is recorded on the same balance sheet line as the
debt security and is charged to the income statement.
Commissions on the issue of debt securities and any premiums on
their issue or redemption are allocated to the income statement on
a straight-line basis over the life of the securities.
10 – Provisions for risks and chargesThis heading includes:
– provisions for country risk, which are determined based on an
appraisal of the risk carried by the Group in the respective coun-
tries or borrowers in those countries; the appraisal criteria are
Caisse des Dépôts Group - Annual Report 2002 57
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 57
![Page 14: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/14.jpg)
generally based on an assessment of the country’s economic,
financial and socio-political situation;
– provisions for sector risks and general provisions to cover losses
whose realization and valuation is uncertain;
– provisions for charges arising from the implementation of a new
labor agreement and the undertaking to provide retirement
indemnities.
– provisions for risks and charges not related to banking transac-
tions, established in accordance with the terms of CRC regula-
tion 2000-06 regarding accounting for liabilities. These provisions
are intended to cover risks and charges that are clearly defined
but whose amount or timing remains uncertain. The establish-
ment of these provisions is subject to the existence of an obliga-
tion to a third-party at year-end, and the absence of at least an
equivalent consideration from this third party. This regulation does
not cover, in particular, banking transactions, financial instruments
and insurance contracts in force.
– provisions for counterparty risks established in the real estate divi-
sion’s subsidiaries. They cover the scope of sound commitments
entered on the balance sheet or as off-balance sheet commit-
ments, for which statistical information is available that makes it
possible to assess default probabilities. These provisions are deter-
mined by applying multiples segmented by rating category and
residual term, and weighted by recovery assumptions in the event
of a default. In particular, they cover potential risks on office space,
financial institutions, local and regional public sector entities and
structured financing.
11 – Pension and related commitmentsIn France, pension liabilities are generally covered by contributions
taken as expenses and paid to retirement or insurance funds, which
then handle pension payments, or by the government in the case
of civil servants.
Provisions are made in respect of the rights of employees to a pay-
ment on retirement that are not covered by insurance contracts, for
each category of employee based on collective bargaining agree-
ments. These provisions are calculated using an actuarial method
taking into account the age and length of service of the personnel,
the mortality rate and probable remaining service with the Group
until retirement, and estimated future salary levels. This provision is
adjusted each year based on changes in the actuarial valuation of
the liabilities.
When these commitments are covered by an insurance policy, the
annual premiums paid are included in expenses for the period.
In countries other than France, there are various compulsory reti-
rement plans to which employers and employees pay contributions.
Depending on each case, the corresponding commitments are paid
to company pension funds or recognized in the individual accounts
of the companies concerned. No restatements are made in this res-
pect in the consolidated financial statements.
Commitments related to bonuses awarded for work medals or
Caisse des Dépôts medals are calculated using the same method
as is used to determine commitments for retirement indemnities.
12 – Subordinated debtThis category includes debt whose repayment in the event of liqui-
dation would occur only after other creditors have been repaid.
Accrued interest payable is carried in a related liability account and
charged against income.
13 – Fund for general banking risksThis fund is constituted to cover operational risks and losses ari-
sing from banking activities and the management of financial
assets that are not covered by general or specific provisions.
Transfers are made to and from this fund on a regular basis to
cover these risks.
Principal accounting and presentationPolicies – Insurance business
Accounting policies and valuation methods specific to insurance
activities have been maintained in the consolidated financial state-
ments of Caisse des Dépôts Group.
Caisse des Dépôts Group applies CRC regulation 2000-05 regar-
ding rules for consolidating companies governed by the Insurance
Code.
Constituent items of the financial statements of insurance compa-
nies are consolidated on the lines of the balance sheet, income sta-
tement and off-balance sheet that are of the same nature, with the
exception of the following items:
➔ Insurance companies’ investmentsInsurance company investments include real estate, investments
representing unit-linked policies and various other investments.
Real estate investments are shown in the balance sheet at acqui-
sition cost, net of acquisition expenses, but increased to reflect the
cost of improvements and certain taxes. Properties are deprecia-
ted over their estimated useful life. The estimated value of proper-
ties is based on reports produced by independent appraisers. A
provision is recognized in the event of permanent diminution in value.
Investments allocated to unit-linked policies are reassessed at the
year end by reference to variations in related unrealized capital
gains or losses. Technical liabilities relating to these policies are
similarly re-estimated.
Equities and other variable income securities are recorded at cost
excluding expenses. A provision for impairment is established to
cover lasting impairment of the securities, determined relative to
the estimated recovery value.
Marketable securities and other fixed-income securities are recor-
ded at cost excluding accrued income. The difference between
the redemption value of these securities and their cost, excluding
accrued income, is allocated on an actuarial basis over the remai-
ning term to maturity. A provision is established in the event of a
default risk on the part of the issuer.
Moreover, when the net book value of the real estate investments
and variable-rate securities exceeds the realization value of these
assets, a provision for the call risk of the technical commitments,
which is equal to the difference between these two amounts, must
be established.
➔ Insurance companies’ technical provisions Technical provisions correspond to commitments to policyholders
and beneficiaries.
58
Consolidated Financial Statements
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 58
![Page 15: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/15.jpg)
• Life insurance and capitalization
For policies including death cover, the provision taken comprises
the share of written premiums not earned in the period concerned.
The actuarial provisions relating to premiums on policies denomi-
nated in monetary terms correspond to the difference in the pre-
sent value of the liabilities of the policyholder and of the insurer.
Life insurance provisions are set aside using a discount rate not
exceeding the expected return, cautiously estimated, on the assets
representing these provisions.
Liabilities are discounted applying a rate that is at the most equal
to the rate of the policy concerned, and using mortality rates requi-
red by regulation or actual mortality tables if these are more pru-
dent.
An overall provision is made for the amount of the total future mana-
gement charges of policies not covered by charges levied on pre-
miums or on the financial income generated thereon.
When remuneration in excess of the minimum guaranteed rate,
based on the results of technical and financial management, is due
to the policyholders and has not been distributed to them during
the period, this remuneration is included in the provision for profit-
sharing payments.
The provision for claims payable includes outstanding claims and
capital due at the year-end.
Actuarial provisions in respect of unit-linked policies are assessed
on the basis of the assets underlying these policies.
• Disability, accident and health insurance
A provision is taken for incremental risks to cover timing differences
between the time when guarantees are acquired by policyholders
and when they are financed by insurance premiums.
Provisions for claims are based on the estimated value of foreseeable
expenses net of any recourse recovery.
• Non-life insurance
Non-life insurance technical provisions comprise provisions for
unpaid premiums (share of premiums issued that correspond to
subsequent years) and provisions for claims payable.
• Gross margin on insurance activities
The gross margin on insurance activities comprises earned income
from premiums and contributions, the cost of benefits (including
changes in technical provisions) and net investment income.
Principal accounting and presentationPolicies – Service sector businesses
Accounting policies and valuation methods specific to service sec-
tor businesses have been maintained in the consolidated financial
statements of Caisse des Dépôts Group.
Constituent items of the consolidated financial statements of ser-
vice companies are consolidated on the lines of the balance sheet,
income statement and off-balance sheet that are of the same nature.
One specific line only has been added, entitled “Net income from
other activities” in the intermediate management balances. Net
income from other activities comprises mainly sales and other ope-
rating income, less purchases consumed.
Caisse des Dépôts Group - Annual Report 2002 59
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 59
![Page 16: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/16.jpg)
60
Consolidated Financial Statements
Note 1 – Interbank and Similar Transactions: Advances and Loans to Financial Institutions
(EURO MILLIONS) 12.31.2002 12.31.2001
Ordinary accounts 8,740 4,141Current accounts of the Savings Funds 149 198Overnight accounts and advances 4,430 3,565Overnight securities purchased under uncollateralized fixed resale agreements 13 -Securities purchased under collateralized fixed resale agreements 5,431 5,510Accrued interest 58 284Amounts due from financial institutions 18,821 13,698Term loans and advances 55,581 49,842Securities purchased under uncollateralized fixed resale agreements 9 9Securities purchased under collateralized fixed resale agreements 28,508 29,464Subordinated loans 57 14Non-performing loans 14 19Provisions (14) (15)Accrued interest 806 897Term loans to financial institutions 84,961 80,230
ADVANCES AND LOANS TO FINANCIAL INSTITUTIONS 103,782 93,928
The majority of advances and loans to financial institutions relates to entities engaged in banking and financial activities.
Note 2 – Customer Transactions (Assets)
(EURO MILLIONS) 12.31.2002 12.31.2001
Overdrafts 2,866 3,056Non-performing loans 9 8Provisions (8) (8)Overdrafts 2,867 3,056Commercial loans 11 323Loans to financial sector customers 896 1,136Other cash advances (1) 6,390 1,517Loans for infrastructure projects 4,132 5,574Loans for housing projects 11,497 10,775Other loans to customers 4,385 4,028Stocks purchased under uncollateralized fixed resale agreements 1 –Securities purchased under collateralized fixed resale agreements 2,376 2,124Subordinated loans 45 53Lease financing and similar agreements 1,127 1,219Non-performing loans 795 796Provisions (298) (336)Accrued interest 230 221Other loans to customers, lease financingand similar agreements 31,576 27,107
CUSTOMER TRANSACTIONS (2) 34,454 30,486
Total at sight 2,867 3,056Total term loans 31,587 27,430
(1) Of which, Acoss for €2,285 million as of December 31, 2002.(2) The majority of loans to customers relates to entities engaged in banking and financial activities.
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 60
![Page 17: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/17.jpg)
Caisse des Dépôts Group - Annual Report 2002 61
Note 3 – Transactions on Trading, Available-for-Sale, Investment and Portfolio Activities
A) BREAKDOWN BY NATURE AND TYPE OF PORTFOLIO
(EURO MILLIONS) 12.31.2002 12.31.2001
Trading Available- Investment Portfolio Trading Available- Investment Portfoliosecurities for-sale securities securities TOTAL securities for-sale securities securities TOTAL
securities securities
French government securities 7,467 945 6,486 14,898 4,128 794 7,076 11,998Treasury bills 4,987 176 5 5,168 7,108 129 32 7,269Securities on loan 1,278 10 - 1,288 519 48 - 567Public-sectorsecurities and similar 13,732 1,131 6,491 21,354 11,755 971 7,108 19,834Bonds 15,069 8,608 14,898 38,575 15,279 6,013 12,489 33,781Subordinated securities 16 93 73 182 1 10 - 11Securitized debt funds 1,777 2,537 26 4,340 4,485 695 30 5,210Money market instruments 8,131 9,269 1,706 19,106 8,502 10,322 1,399 20,223Securities on loan 2,944 90 188 3,222 5,090 - 1,126 6,216Bonds and other fixedincome securities 27,937 20,597 16,891 65,425 33,357 17,040 15,044 65,441Equities 3,851 1,039 8,950 13,840 1,250 1,080 9,258 11,588Mutual funds 1,085 3,116 4,201 1,233 3,182 4,415Securities on loan 105 2 107 49 2 51Equities and othervariable income securities 5,041 4,157 8,950 18,148 2,532 4,264 9,258 16,054
TOTAL BY TYPEOF PORTFOLIO 46,710 25,885 23,382 8,950 104,927 47,644 22,275 22,152 9,258 101,329
Securities portfolios are mainly held by entities engaged in banking and financial activities.
B) SUPPLEMENTARY INFORMATION
(EURO MILLIONS) 12.31.2002 12.31.2001
Trading Available- Investment Portfolio Trading Available- Investment Portfoliosecurities for-sale securities securities TOTAL securities for-sale securities securities TOTAL
securities securities
Public-sector securities and similarGross value (1) 13,731 1,047 6,217 20,995 11,755 874 6,828 19,457Premiums/discounts 8 98 106 27 98 125Related receivables 1 76 176 253 - 73 182 255Provisions - - - (3) - (3)
Net book value 13,732 1,131 6,491 21,354 11,755 971 7,108 19,834Market value oftrading and available- for-sale securities 13,731 1,260 11,755 1,172
Bonds and otherfixed income securitiesGross value (1) 27,937 20,428 16,524 64,889 33,357 16,949 14,636 64,942Premiums/discounts 73 18 91 36 42 78Related receivables - 160 353 513 - 121 366 487Provisions (64) (4) (68) (66) - (66)
Net book value 27,937 20,597 16,891 65,425 33,357 17,040 15,044 65,441Of which, listed securities 17,836 17,470 15,998 51,304 20,059 14,938 14,451 49,448Market value of trading and available-for- sale securities 27,937 20,697 33,357 17,275
Equities and othervariable income securitiesGross value 5,041 4,475 11,017 20,533 2,532 4,503 10,150 17,185Related receivables - - 28 28 - - 28 28Provisions (318) (2,095) (2,413) (239) (920) (1,159)
Net book value 5,041 4,157 8,950 18,148 2,532 4,264 9,258 16,054Of which, listed securities 4,447 1,627 8,162 14,236 1,138 1,400 8,671 11,209Market value (trading andavailable for-sale securities) or value in use (portfolio securities) (2) 5,041 4,066 12,945 22,052 2,532 4,481 15,915 22,928
(1) Gross values shown under “available-for-sale securities” and “investment securities” correspond to redemption value.(2) These amounts do not take into account unrealized gains and losses from financial instruments allocated, where applicable, as hedges for available-for-sale securities.
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
1/conso/p45_61/US_BAG 30/07/2003 16:39 Page 61
![Page 18: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/18.jpg)
(EURO MILLIONS) 12.31.2002 12.31.2001
Investments to cover unit-linked policies 5,083 5,450Other investmentsLand and buildings 1,311 1,098Investments in related undertakings and long-term equity holdings 63 21Other investments 56,875 53,464
INVESTMENTS OF INSURANCE COMPANIES 63,332 60,033
This relates mainly to investments by CNP Assurances, which was proportionally consolidated for 42.98% as of December 31, 2002 in the consolidated financial statements of Caisse des Dépôts Group.The insurance subsidiaries of EULIA (namely Ecureuil IARD, Cegi, Saccef and Foncier Assurance) and CDC IXIS Financial Guaranty were also consolidated proportionally.As of December 31, 2002, the line “other investments” comprised mainly equities and pooled investment vehicles invested in equities (€6.6 billion) and bonds and mutual fund vehicles invested in bonds (€42.9 billion), these being the proportionally consolidated amounts excludingrelated receivables relating to CNP Assurances.Other investments include notably the value of companies of the CNP Assurances Group accounted for under the equity method (see Note 6).
Consolidated Financial Statements
A) MOVEMENTS
(EURO MILLIONS) 12.31.2001 Acquisitions/ Disposals/ Other 12.31.2002charges reversals movements
Long-term equity holdingsGross value (2) 2,680 284 (80) 42 2,926Provisions (301) (35) 52 (26) (310)
Net book value 2,379 249 (28) 16 2,616AdvancesGross value 555 176 (164) (52) 515Provisions (168) (33) 24 (4) (181)
Net book value 387 143 (140) (56) 334
LONG-TERM EQUITY HOLDINGS (1) 2,766 392 (168) (40) 2,950
(1) Long-term equity holdings involve mainly entities engaged in banking and financial activities.(2) The increase in long-term equity holdings was due notably to the acquisition of Nexgen shares by CDC IXIS and of Gecina shares by Crédit Foncier de France (CFF) as part of its takeover bid for Simco, in which CFF already owned shares.
62
Note 4 – Investments of Insurance Companies
Note 5 – Long-term Equity Holdings
2/conso/p62_69/US_BAG 30/07/2003 16:40 Page 62
![Page 19: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/19.jpg)
Caisse des Dépôts Group - Annual Report 2002 63
B) MAIN LONG-TERM EQUITY HOLDINGS AS OF 12.31.2002
(EURO MILLIONS) Bookvalue of Advances Provisions Total Percentage
securities 12.31.2002 held
Companies in which the Group's net investment is over €50 millionDexia 864 864 5.20%Areva 360 360 3.60%Sanpaolo IMI (1) 233 233 1.44%Banca Carige 114 114 6.87% (2)Crédit Logement 80 80 8.94% (3)Nexgen 74 74 30.63% (4)Sicovam Holding 51 51 8.80%Sub-total 1,776 – – 1,776
Other non-consolidated holdings 953 (285) 668Advances related to non-consolidated holdings 501 (171) 330SEM and SAIEM 197 14 (35) 176
TOTAL CONSOLIDATED AND NON-CONSOLIDATEDLONG-TERM EQUITY HOLDINGS AND ADVANCES 2,926 515 (491) 2,950
Of which, listed companies 1,211 – – 1,211
(1) CDC IXIS Italia Holding owns 2% of SP IMI, worth €324 million (CDC IXIS Italia Holding is consolidated proportionally at 71.92%).(2) Held 5.7% by EULIA (67.6% consolidated) and 3.8% by CDC IXIS (79.4% consolidated).(3) Held 8.5% by EULIA (67.6% consolidated) and 6.99% by Crédit Foncier de France (45.7% consolidated).(4) Held 38.6% by CDC IXIS (79.4% consolidated).These securities are held by banking and financial subsidiaries.
(EURO MILLIONS) 12.31.2002 12.31.2001Equity- Of which, Equity- Of which,
accounted net income accounted proformaamount amount net income
BDPME 330 12 263 9Groupe CNCE 48 (37) 128 22Ecureuil Vie 531 38 505 44Other 194 21 377 (9)
INVESTMENTS ACCOUNTED FOR BY THE EQUITY METHOD 1,103 34 1,273 66
Of which, investments accounted for by the equity methodby entities engaged in banking and financial activities 1,076 32 1,221 82
Of which, investments accounted for by the equity methodby entities engaged in non-banking activities (excluding CNP Assurances) (1) 27 2 52 (16)
COMPANIES ACCOUNTED FOR BY THEEQUITY METHOD BY CNP ASSURANCES (2) 17 2 18 3
NET INCOME OF COMPANIES ACCOUNTED FOR BY THEEQUITY METHOD, INCLUDING CNP ASSURANCES GROUP 36 69
(1) Essentially from C3D Group.(2) Included in investments of insurance companies (see Note 4).
Note 6 – Investments Accounted for by the Equity Method
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
2/conso/p62_69/US_BAG 30/07/2003 16:40 Page 63
![Page 20: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/20.jpg)
64
Consolidated Financial Statements
Note 7 – Tangible and Intangible Fixed Assets
A) BREAKDOWN OF ASSETS
(EURO MILLIONS) 12.31.2002 12.31.2001Gross Amortization, Net Gross Amortization, Net
depreciation depreciationand provisions and provisions
Operating fixed assets 3,255 (1,480) 1,775 2,741 (1,213) 1,528Investment properties (2)
Construction in progress 116 (1) 115 105 - 105Land and buildings 3,188 (1,048) 2,140 3,446 (1,327) 2,119Forests and undeveloped land 20 - 20 20 - 20Real estate holding companies 480 (52) 428 441 (55) 386
TANGIBLE ASSETS 7,059 (2,581) 4,478 6,753 (2,595) 4,158
Purchased goodwill 160 (35) 125 139 (27) 112Concessions, licenses and patents 403 (253) 150 360 (232) 128Other intangible assets (3) 862 (58) 804 970 (45) 925
INTANGIBLE ASSETS 1,425 (346) 1,079 1,469 (304) 1,165
TANGIBLE AND INTANGIBLE ASSETS 8,484 (2,927) 5,557 8,222 (2,899) 5,323
Of which, assets of entities engaged inbanking and financial activities 4,782 (1,065) 3,717 4,990 (1,200) 3,790Of which, assets of entities engaged in non-banking activities (1) 3,702 (1,862) 1,840 3,232 (1,699) 1,533
(1) Contributed mainly by C3D Group.(2) Unrealized capital gains on investment assets amounted to €837 million at end-December 2002.(3) Of which, market share identified at the time of the acquisition of CDC IXIS Asset Management North America (Nvest) for U.S. $719 million.
(EURO MILLIONS) 12.31.2001 Acquisitions Disposals/ Other 12.31.2002Reversals movements
Gross tangible operating fixed assets 2,741 347 (160) 327 3,255Depreciation and provisions (1,213) (161) 78 (184) (1,480)
TANGIBLE OPERATING ASSETS 1,528 186 (82) 143 1,775
Investment properties, gross 4,012 168 (386) 10 3,804Depreciation and provisions (1,382) (105) 182 204 (1,101)
INVESTMENT PROPERTIES 2,630 63 (204) 214 2,703
Intangible assets, gross 1,469 108 (58) (94) 1,425Amortization and provisions (304) (77) 35 - (346)
INTANGIBLE ASSETS 1,165 31 (23) (94) 1,079
TANGIBLE AND INTANGIBLE ASSETS 5,323 280 (309) 263 5,557
The other changes in fixed operating assets mainly involved first-time consolidations and changes in consolidation methods used for several Groupcompanies, in particular the full consolidation of Grévin et Cie, which had previously been accounted for under the equity method by C3D.Other changes involving intangible assets were mainly due to changes in currency exchange rates (U.S. dollars versus Euros) on the market shareidentified at the time of the acquisition of CDC IXIS Asset Management North America (NVEST) .
B) MOVEMENTS
2/conso/p62_69/US_BAG 30/07/2003 16:40 Page 64
![Page 21: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/21.jpg)
Caisse des Dépôts Group - Annual Report 2002 65
Note 8 – Goodwill on Acquisitions
(EURO MILLIONS) 12.31.2002 12.31.2001
Goodwill on acquisitionsGoodwill on acquisitions, gross at January 1 1,318 1,858Goodwill arising on investments and other movements (1) (43) (540)Goodwill on acquisitions, gross 1,275 1,318Amortization at January 1 (166) (205)Net amortization for the period (2) (247) (70)Other movements 34 109Amortization (379) (166)
GOODWILL ON ACQUISITIONS, NET 896 1,152
Negative goodwillNet negative goodwill at January 1 22 3Reversals in the period (16) (1)Other movements 5 20
NEGATIVE GOODWILL, NET 11 22
IMPACT ON NET INCOME FOR THE PERIOD (231) (69)
(1) The other movements include the effect of foreign currency translation differences on goodwill recorded at the time of the acquisition of CDC IXIS AssetManagement North America, L.P.(2) Pursuant to paragraph No. 2110 of CRC regulation No. 99-07 on the consolidation rules of companies subject to the CRBF, in 2001 CDC IXIS Groupperformed due diligence and additional audits that led to a more precise market share estimate (see Note 7) and to record a deferred tax asset of $363million, which is included in the acquisition price of CDC IXIS Asset Management North America L.P. This deferred tax asset is being written back over aperiod of 15 years using an actuarial method. As of December 31, 2002, it totaled €314 million (group share: €226 million).The goodwill on this acquisition, amortized over 20 years, totaled $841 million before amortization (€801 million based on the December 31, 2002exchange rate, or a group share of €578 million, compared with €953 million and €687 million, respectively, the previous year).The downturn in the U.S. financial markets last year, which represented an index of impaired value, led the Group to carry out an impairment test thatexamined both specified intangible assets (market share) and residual goodwill. The value in use of these assets was determined by using a method based on the discounted cash flow method applied to the entire CDC IXIS AssetManagement North America Group. The discount rate used in this method includes a substantial risk premium and an exit multiple that is determinedbased on a range of peer companies. The conclusion of this impairment test led the Group to record $203 million (€215 million based on the average exchange rate for the period, or a groupshare of €155 million) in non-recurring amortization. This exceptional amortization affects only the residual goodwill, which as of December 31, 2002totaled $547 million (€521 million based on the year-end exchange rate, or a group share of €375 million), after ordinary and non-recurring amortization,compared with $792 million the previous year (€897 million based on the year-end exchange rate, or a group share of €647 million).
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
2/conso/p62_69/US_BAG 30/07/2003 16:40 Page 65
![Page 22: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/22.jpg)
66
Consolidated Financial Statements
Note 9 – Accruals, Deferrals and other Assets
(EURO MILLIONS) 12.31.2002 12.31.2001
Deferred charges 662 311Prepaid expenses 248 177Accrued income 873 1,477Currency adjustments and market value adjustments to financial instruments 8,195 3,788Collection accounts 906 3,778Other accruals 3,612 4,506Deferred tax assets 423 555Accruals and deferrals 14,919 14,592Premiums on purchases of options 566 829Miscellaneous receivables 6,309 4,356Settlement accounts on securities transactions 3,688 3,604Inventories and similar 457 311Accrued interest 59 15Impairment provisions (116) (113)Other assets 10,963 9,002Share of reinsurers in technical provisions 1,572 1,419Other insurance assets 892 847Other insurance assets and share of reinsurers in technical provisions 2,464 2,266
ACCRUALS, DEFERRALS AND OTHER ASSETS 28,346 25,860
Of which, miscellaneous assets of entities engaged in banking and financial activities 9,132 7,595Of which, miscellaneous assets of entities engaged in non-banking activities 1,831 1,407
Note 10 – Interbank and Similar Transactions: Advances and Loans from Financial Institutions
(EURO MILLIONS) 12.31.2002 12.31.2001
Current accounts 8,461 3,937Overnight advances 1,999 2,787Overnight securities sold under uncollateralized fixed repurchase agreements 1 -Securities sold under collateralized fixed repurchase agreements 4,268 1,130Other amounts due 16 132Accrued interest 29 238Amounts due to financial institutions 14,774 8,224Term loans and advances 75,590 75,903Securities sold under uncollateralized repurchase agreements - 11Securities sold under collateralized fixed repurchase agreements 35,325 30,401Accrued interest 1,028 1,344Term loans from financial institutions 111,943 107,659
ADVANCES AND LOANS FROM FINANCIAL INSTITUTIONS 126,717 115,883
Nearly all the amounts due to financial institutions relate to entities engaged in banking and financial activities.
2/conso/p62_69/US_BAG 30/07/2003 16:40 Page 66
![Page 23: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/23.jpg)
Caisse des Dépôts Group - Annual Report 2002 67
Note 11 – Customer Transactions (Liabilities)
(EURO MILLIONS) 12.31.2002 12.31.2001
Current accounts 25,025 28,311Accrued interest 8 11Customer deposits 25,033 28,322Loans from financial sector customers 1,221 1,524Escrow accounts ("consignations") 2,490 2,364Term deposits 9,757 10,443Securities sold under uncollateralized fixed repurchase agreements 12 12Securities sold under collateralized fixed repurchase agreements 4,490 4,750Other 189 147Accrued interest 466 412Other customer advances and loans 18,625 19,652
CUSTOMER TRANSACTIONS 43,658 47,974
Nearly all the amounts due to customers relate to entities engaged in banking and financial activities.
Note 12 – Debt securities
(EURO MILLIONS) 12.31.2002 12.31.2001
Cash certificates 1 1Interbank instruments - 20Commercial paper 4,892 5,389Certificates of deposit 12,559 10,319Medium-term notes 9,148 7,227Other money market instruments 3,985 1,549Related amounts payable 194 189Interbank and money market instruments 30,778 24,693Bonds and similar debt securities 19,777 17,630Related amounts payable 643 725Bonds and similar debt securities 20,420 18,355Other debt securities - -
DEBT SECURITIES 51,199 43,049
Debt securities relate to entities engaged in banking and financial activities.Bonds relate almost entirely to CDC IXIS and the Crédit Foncier de France Group. As of December 31, 2002, the respective contributions from these twoentities amounted to €6.58 billion and €13.05 billion. A new covered bond issue by Compagnie de Financement Foncier (a subsidiary of Crédit Foncier de France) accounts for most of this item's increase in 2002.
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
2/conso/p62_69/US_BAG 30/07/2003 16:40 Page 67
![Page 24: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/24.jpg)
68
Consolidated Financial Statements
Note 13 – Technical Provisions of Insurance Companies
(EURO MILLIONS) 12.31.2002 12.31.2001
Technical provisions relating to unit-linked policies 5,083 5,458Other technical provisionsTechnical provisions life business 53,879 50,557Technical provisions non-life business 1,877 1,725Equalization provisions 1 1
TECHNICAL PROVISIONS OF INSURANCE COMPANIES 60,840 57,741
The above comprise mainly the technical provisions of CNP Assurances, which was consolidated proportionally at 42.98% in the financial statements of Caisse des Dépôts Group as of December 31, 2002. The insurance subsidiaries of EULIA (Ecureuil IARD, Cegi, Saccef, Foncier Assurance) and CDC IXIS Financial Guaranty were also consolidatedproportionally.
(EURO MILLIONS) 12.31.2002 12.31.2001
Deferred income 1,009 810Accrued charges 842 1,168Currency adjustments and market value adjustments to financial instruments 6,315 3,779Other deferrals 8,003 5,543Deferred tax liabilities (see Note 33) 418 505Accruals and deferrals 16,587 11,805Premiums on sale of options 2,008 1,477Securities on loan 20,254 24,135Miscellaneous payables 8,136 5,180Settlement accounts on securities transactions 2,920 3,681Accrued interest - 1Liabilities arising from direct insurance 546 533Other insurance liabilities 7 14Miscellaneous liabilities 33,871 35,021
ACCRUALS, DEFERRALS AND OTHER LIABILITIES 50,458 46,826
Of which, miscellaneous liabilities of entitiesengaged in banking and financial activities 31,266 32,737Of which, miscellaneous liabilities of entitiesengaged in non-banking activities 2,605 2,284
Note 14 – Accruals, Deferrals and other Liabilities
2/conso/p62_69/US_BAG 30/07/2003 16:40 Page 68
![Page 25: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/25.jpg)
Caisse des Dépôts Group - Annual Report 2002 69
(EURO MILLIONS) 12.31.2001 Charges Reversals Reversals Other 12.31.2002(unused) (used) movements
Provisions for retirement and other employment-related charges 210 56 (74) (1) 22 213Provisions for real estate risks 42 9 (9) - 35 77Provisions for counterparty risks 140 72 (42) (2) 36 204Prudential provisionsfor portfolio activities - - - - - -Other provisions for risks and charges 369 115 (110) (5) (34) 335
PROVISIONS FOR RISKS AND CHARGES 761 252 (235) (8) 59 829
Of which, provisions arising from entitiesengaged in banking and financial activities 495 183 (145) (8) 24 549Of which, provisions arising from entitiesengaged in non-banking activities 266 69 (90) - 35 280
(EURO MILLIONS) Fund for Minority Minority Minority Consolidated Translation Income, Retained Totalgeneral interests interest interests reserves reserve group earnings, consolidatedbanking in reserves in income in retained (excluding share group retained
risks (excluding earnings FGBR) share earnings(FGBR) FGBR) (excluding (excluding
(1) FGBR) FGBR)
Consolidated retainedearnings as ofDecember 31, 2001 948 645 73 718 11,560 27 1,357 12,944 14,610 Appropriation of 2001 earnings 73 (73) 1,357 (1,357) Distribution in 2002of 2001 earnings (2) (24) (24) (925) (925) (949) Other changes (3) (272) 181 181 17 (243) (226) (317) 2002 income 87 87 710 710 797
CONSOLIDATED RETAINEDEARNINGS AS OFDECEMBER 31, 2002 676 875 87 962 12,009 (216) 710 12,503 14,141
(1) Fund for general banking risks of fully and proportionally consolidated entities. As of December 31, 2002 minority interests in the fund for generalbanking risks were not material. (2) Dividends paid in 2002 broke down as follows:– €452.3 million, or 33.33% of the previous year's consolidated income, which totaled €1,357 million.– a non-recurring dividend of €457 million related to the contribution of CDC IXIS shares to EULIA. Since this pooling of interests by the two Groups
did not result in the crystallization of any capital gains, Caisse des Dépôts et Consignations chose to pay a special dividend that was the equivalent to what the State would have received had it received the capital gains on the transactions.
– a non-recurring dividend of €15.2 million paid to the Cyberbase fund.(3) Other changes included:– for the fund for general banking risks, €266 million in net reversals to the income statement, which for the most part corresponded to the reversal
by the Central Sector (€259 million), as well as several transfers at subsidiary level;– for the group share of retained earnings, the change was an overall decrease of €226 million, which included a €243 million decrease from the foreign
currency translation difference mainly with the U.S. subsidiaries. Other movements involve for the most part changes in consolidation methods, reversalsof provisions for long-term impairment prior to 1995 and investment subsidies;
– for minority interests, changes in consolidation scope, notably with the first-time consolidation of the CDC PME Croissance mutual fund and the recording of minority interests on EMGP, which was fully consolidated at year-end.
Note 16 – Changes in the Fund for General Banking Risks, Minority Interests and Retained Earnings
Note 15 – Provisions for Risks and Charges
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
2/conso/p62_69/US_BAG 30/07/2003 16:40 Page 69
![Page 26: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/26.jpg)
70
Consolidated Financial Statements
(EURO MILLIONS) 3 months 3 months 1 year More than Eliminations Total
or less to 1 year to 5 years 5 years 12.31.2002
ASSETSAdvances and loansto financial institutions 132,468 8,955 5,532 8,799 (51,972) 103,782Loans to customers 9,020 5,500 8,454 13,287 (4,674) 31,587Available-for-sale andinvestment securities
Public-sector securities and similar 181 1,132 5,060 1,249 - 7,622Bonds and other fixed income securities 9,832 2,669 8,224 17,266 (503) 37,488
LIABILITIESAdvances and loansfrom financial institutions 162,144 7,765 5,326 6,793 (55,311) 126,717
of which, securities sold under collateralized fixed repurchase agreements (including related payables) 38,488 2,409 1,074 930 (3,257) 39,644
Customer advances and loans 10,156 4,310 559 3,667 (67) 18,625of which, securities sold under collateralized fixed repurchase agreements(including related payables) 3,162 383 255 711 - 4,511
Debt securitiesBonds 2,300 2,469 8,059 7,662 (70) 20,420Other fixed income securities 17,392 2,308 4,438 6,641 - 30,779
(Euro millions) Euro U.S. Pound Other Eliminations Total
Dollar Sterling 12.31.2002
ASSETSAdvances and loansto financial institutions 131,958 21,289 518 1,989 (51,972) 103,782Loans to customers 29,358 6,677 146 80 (4,674) 31,587Available-for-sale and investment securitiest
Public-sector securities and similar 7,622 - - - - 7,622Bonds and other fixed income securities 31,228 5,522 478 763 (503) 37,488
LIABILITIESAdvances and loans from financial institutions 147,913 30,023 1,599 2,493 (55,311) 126,717
of which, securities sold under collateralized fixed repurchase agreements (including related payables) 37,004 5,764 3 130 (3,257) 39,644
Customer advances and loans 14,768 3,910 - 14 (67) 18,625of which, securities sold under collateralized fixed repurchase agreements(including related payables) 4,503 8 - - - 4,511
Debt securitiesBonds 18,551 1,926 13 - (70) 20,420Other debt securities 19,489 6,915 1,273 3,102 - 30,779
A) CONSOLIDATED BALANCE SHEET ITEMS BY TERM OF MATURITY
B) CONSOLIDATED BALANCE SHEET ITEMS BY CURRENCY
Note 17
3/conso/p70_83/US_BAG 30/07/2003 16:41 Page 70
![Page 27: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/27.jpg)
Caisse des Dépôts Group - Annual Report 2002 71
A) OFF-BALANCE SHEET COMMITMENTS IN RESPECT OF SPOT OR FORWARD CURRENCY
TRANSACTIONS AND LENDING AND BORROWING OF FOREIGN CURRENCY
(EURO MILLIONS) 12.31.2002 12.31.2001
Spot transactionsEuros purchased to be received 1,628 2,000Foreign currencies purchased to be received 5,847 5,453Euros sold to be delivered 1,582 2,912Foreign currencies sold to be delivered 5,998 6,032Lending and borrowingForeign currencies loaned to be delivered 1,222 674Foreign currencies borrowed to be received 1,359 3,998Forward currency transactionsEuros to be received against foreign currencies to be delivered
Euros to be received 45,699 41,452Foreign currencies to be delivered 43,512 43,448
Foreign currencies to be received against euros to be deliveredForeign currencies to be received 45,849 44,058Euros to be delivered 47,530 41,359
Foreign currencies to be received against foreign currencies to be delivered 42,403 36,090Foreign currencies to be delivered against foreign currencies to be received 42,918 37,896Unaccrued premiums/discountsTo be received 328 1,091To be paid 368 1,086
B) FORWARD FINANCIAL INSTRUMENTS
(EURO MILLIONS) 12.31.2002 12.31.2001 (1)
TRANSACTION CASH/HEDGE TRANSACTION CASH/HEDGE
Purchase/ Sale/ Purchase/ Sale/ Purchase/ Sale/ Purchase/ Sale/Borrowing Loan Borrowing Loan Borrowing Loan Borrowing Loan
FUTURES TRANSACTIONSOrganized marketsInterest rate contracts 38,263 58,978 1,422 1,429 160,337 163,971 4,785 4,983Foreign currency contracts - - - 26 - - - 48Other contracts 19,905 64,910 - 2 25,235 61,573 - 150Over-the-counter marketsInterest rate swaps 1,025,616 69,178 893,850 81,194FRA 17,011 12,351 215 - 13,269 15,971 - -Foreign currency contracts - 74 2,049 - 104 400 1,708 -Other contracts 213 164 131 131 2,223 2,223 131 131
OPTIONSOrganized marketsInterest rate options 17,418 31,878 198 397 16,397 17,951 - -Other options 24,740 16,406 - - 33,642 19,865 - -Over-the-counter marketsInterest rate options 1,672 3,145 1,504 23 3,039 2,294 1,908 42Caps, floors 47,977 73,955 3,071 565 39,534 58,939 2,314 1,251Swaptions 19,782 25,289 1 25 19,730 18,490 147 228Foreign currency options 1,658 1,683 - - 267 248 27 27Other options 11,299 13,674 448 191 6,585 11,164 651 344
(1) Amounts restated relative to the 2001 annual report.
Note 18
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
3/conso/p70_83/US_BAG 30/07/2003 16:41 Page 71
![Page 28: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/28.jpg)
72
Consolidated Financial Statements
Information on counterparty risk relative
to forward financial instruments
The analysis below covers the full range of the Caisse des Dépôts
competitive banking subsidiaries, in other words the companies
controlled by EULIA and, in particular, CDC IXIS. The data are pro-
portional to the rate at which Caisse des Dépôts consolidates these
entities. The analysis presented below is not a restatement of tran-
sactions engaged in by Caisse des Dépôts et Consignations’ Central
Sector.
Counterparty risk relative to forward financial instruments is measu-
red as the likely loss that would be suffered by the range of entities
concerned in the event that the counterparty is unable to meet its
commitments. Exposure to counterparty risk on forward interest rate
and foreign exchange instruments (futures and options) can be deter-
mined by calculating the equivalent credit risk as defined in instruc-
tion no. 96-06 of the French banking commission. This involves cal-
culating the sum of:
• the positive replacement cost of the instruments based on mar-
ket value, net of any compensatory agreements that meet the
conditions of article 4 of CRBF regulation no. 91-05;
• the potential credit risk that results from the application of add-
ons, as defined in the above-mentioned regulation, calculated on
the basis of the nominal value of the contracts depending on their
nature and residual duration.
This counterparty risk is partly offset by:
• the signing of master agreements on market conventions (ISDA-
AFB) that allow the compensation of positive and negative repla-
cement values in the event of counterparty default;
• the signing of collateralization agreements involving the granting of
guarantees in the form of cash or securities.
C) FORWARD FINANCIAL INSTRUMENTS BY TERM TO MATURITY
(EURO MILLIONS) 3 months 3 months 1 year More than Eliminations Total or less to 1 year to 5 years 5 years 12.31.2002
FUTURES TRANSACTIONSInterest rate contracts 47,130 7,589 45,373 - - 100,092Foreign currency contracts 313 1,050 - 1,356 (570) 2,149Interest rate swaps 381,360 318,120 319,199 295,167 (219,052) 1,094,794FRA 5,100 2,960 21,330 187 - 29,577Other contracts 39,496 24,411 18,377 3,389 (217) 85,456
OPTIONSInterest rate options 25,133 3,734 26,352 1,061 (45) 56,235Caps, floors 18,201 63,142 25,933 34,324 (16,032) 125,568Swaptions 12,348 20,919 20,170 8,142 (16,482) 45,097Foreign exchange options 3,341 - - - - 3,341Other options 8,873 28,724 25,449 3,761 (49) 66,758
(EURO MILLIONS) OECD OECD Other Totalgovernments financial counterparties 12.31.2002and central institutions
banks
Equivalent unweighted credit risk beforecompensation and collateralization agreements 1,386 25,674 4,551 31,611Effects of compensation agreements by liquidation (988) (15,124) (684) (16,796)Effects of collateralization agreements - (1,942) (59) (2,001)Equivalent unweighted credit risk after compensation and collateralization agreements 398 8,608 3,808 12,814Equivalent weighted credit risk aftercompensation and collateralization agreements 1,721 1,904 3,625
This table includes only transactions concerned by regulation no. 96-06 of the French banking commission, i.e. transactions completed on OTC marketsand on markets comparable to organized markets.
a) CNCE commitmentsAs part of the Alliance's transactions, Caisse des Dépôts Group
entered into commitments (given or reciprocal) with CNCE that could
result in cash outflows or inflows. Because the effects of these com-
mitments could not be assessed until after the guarantee periods
have ended (between 2004 and 2011), only the maximum contrac-
tual amounts were entered among off-balance-sheet commitments.
These commitments given and received totaled €389 million and
€238 million, respectively.
b) Sanpaolo IMI (SP IMI) commitmentCaisse des Dépôts Group and Sanpaolo IMI signed an agreement
that expresses their intention to create a lasting strategic partner-
ship. Along with this agreement, the two groups acquired cross-
holdings. In that context, Caisse des Dépôts granted Sanpaolo IMI
two options to purchase CDC IXIS shares, the first in the event of
a change in CDC IXIS’s controlling ownership, the second, which
includes a liquidity commitment, in the event that the shares are not
listed on an organized European market. In addition, Caisse des
D) OTHER OFF-BALANCE-SHEET COMMITMENTS
3/conso/p70_83/US_BAG 30/07/2003 16:41 Page 72
![Page 29: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/29.jpg)
Caisse des Dépôts Group - Annual Report 2002 73
Dépôts has an option to buy CDC IXIS shares owned by Sanpaolo
IMI, which can be exercised in the event of a change in the control-
ling interest in Sanpaolo IMI. These commitments expire in 2004.
The sale price of the shares in the event the options are exercised
shall be determined by expert financial appraisals.
(EURO MILLIONS) 2002 2001 Proforma
Interest on current account advances 256 951Interest on other loans and securities purchased under uncollateralized fixed resale agreements 2,868 1,935Interest on securities purchased under collateralized fixed resale agreements 948 1,231Premium/discount income and other interest and similar income 707404
INTEREST AND SIMILAR REVENUES FROMTREASURY AND INTERBANK TRANSACTIONS 4,779 4,521
Interest on current accounts (258) (1,024)Interest on loans and securities sold under uncollateralized fixed repurchase agreements (3,547) (2,304)Interest on securities sold under collateralized fixed repurchase agreements (1,151) (1,250)Premium/discount expenses and other interest and similar expenses (700) (292)
INTEREST AND SIMILAR EXPENSES ON TREASURYAND INTERBANK TRANSACTIONS (5,656) (4,870)
Note 20 – Interest and Similar Revenues and Expenses on Customer Transactions
(EURO MILLIONS) 2002 2001 Proforma
Interest on overdrafts 91 38Interest on commercial and other loans to customers 1,184 987Interest on other loans and on securities purchased under uncollateralized fixed resale agreements 51 64Interest on securities purchased under collateralized fixed resale agreements 58 81Interest and similar income on leasing transactions 76 61Other interest and similar income 234 167Doubtful interest receivables 42 45Provisions for doubtful interest receivables 14 6Losses on uncollectable interest, reversals of provisions for interest and collections (28) (11)
INTEREST AND SIMILAR REVENUES FROM CUSTOMER TRANSACTIONS 1,722 1,438
Interest on current accounts (321) (382)Interest on escrow accounts ("consignations") (40) (40)Interest on term deposits, borrowings and securities sold under uncollateralized fixed repurchase agreements (264) (285)Interest on securities sold under collateralized fixed repurchase agreements (90) (110)Interest and similar charges on leasing transactions (3) (2)Other interest and similar charges (198) (255)
INTEREST AND SIMILAR EXPENSES ON CUSTOMER TRANSACTIONS (916) (1,074)
Note 19 – Interest and Similar Revenues and Expenses on Treasury and Interbank Transactions
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
3/conso/p70_83/US_BAG 30/07/2003 16:41 Page 73
![Page 30: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/30.jpg)
74
Consolidated Financial Statements
(EURO MILLIONS) 2002 2001
Proforma
Interest and similar revenues from available-for-sale securities 809 680Interest and similar revenues from investment securities 1,252 1,106Other interest and similar revenues 401 521
INTEREST AND SIMILAR REVENUES FROM BONDSAND OTHER FIXED-INCOME SECURITIES 2,462 2,307
Interest expenses on negotiable certificates of deposit (290) (363)Interest expenses on negotiable medium-term notes (1,118) (289)Interest and expenses on bonds (472) (1,140)Other interest expenses (668) (861)
INTEREST AND SIMILAR EXPENSES ON BONDSAND OTHER FIXED-INCOME SECURITIES (2,548) (2,653)
NET INTEREST AND SIMILAR REVENUES (EXPENSES) ON BONDS AND OTHER FIXED-INCOME SECURITIES (86) (346)
Note 22 – Revenues from variable Income Securities
(EURO MILLIONS) 2002 2001 Proforma
Revenues from available-for-sale securities 87 116Revenues from portfolio securities 273 288Revenues from long-term equity holdings 109 89
REVENUES FROM VARIABLE INCOME SECURITIES 469 493
(EURO MILLIONS) 2002 2001 ProformaRevenues Expenses Revenues Expenses
Money-market and interbank transactions 1 (5) 5 (8)Customer transactions 32 - 33 (8)Securities trading 31 (39) 32 (46)Forward financial instruments trading 9 (27) 10 (37)Financial services (1) 847 (135) 848 (161)Currency trading 3 (1) 1 (1)Other commissions 32 (11) 34 (11)
COMMISSIONS 955 (218) 963 (272)
(1) The 2001 proforma income statement includes €93 million in commission expenses that correspond to retroceded financial services commissions,which had been entered under “Other administrative expenses” in the reported 2001 income statement (see Note 36).
Note 21 – Interest and similar Revenues and Expenses on Bondsand other fixed Income Securities
Note 23 – Commission Revenues and Expenses
3/conso/p70_83/US_BAG 30/07/2003 16:41 Page 74
![Page 31: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/31.jpg)
Caisse des Dépôts Group - Annual Report 2002 75
(EURO MILLIONS) 2002 2001 Proforma
Net gains (losses) on trading securities 940 916Net gains (losses) on foreign currency instruments 163 85Net gains (losses) on forward financial instruments 431 347
GAINS AND LOSSES ON TRADING SECURITY TRANSACTIONS 1,534 1,348
(EURO MILLIONS) 2002 2001 Proforma
Net gains (losses) on the sale of available-for-sale securities 652 675Other income and expenses on available-for-sale securities (6) (3)Provisions taken/reversed on available-for-sale securities (82) (154)
GAINS AND LOSSES ON AVAILABLE-FOR-SALE SECURITY TRANSACTIONS 564 518
Net gains (losses) on the sale of portfolio securities 817 876Provisions taken/reversed on portfolio securities (1) (1,172) (196)
GAINS AND LOSSES ON PORTFOLIO SECURITY TRANSACTIONS (355) 680
GAINS AND LOSSES ON AVAILABLE-FOR-SALEAND PORTFOLIO SECURITIES 209 1,198
(1) These provisions consist mainly of allocations by the Central Sector in the amount of €928 million and by CDC IXIS in the amount of €230 million,group share.
Note 24 – Gains and Losses on Trading Security Transactions
Note 25 – Gains and Losses on Available-for-Sale and PortfolioSecurity Transactions
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
3/conso/p70_83/US_BAG 30/07/2003 16:41 Page 75
![Page 32: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/32.jpg)
76
Consolidated Financial Statements
Note 26 – Other Net Operating Banking Revenues and Expenses
(EURO MILLIONS) 2002 2001 ProformaRevenues Expenses Revenues Expenses
Gains or losses on disposal of investment properties 82 (17) 81 (11)Depreciation and provision charges/reversals on investment properties 56 (108) 62 (125)Revenues and expenses on investment properties 369 (83) 374 (90)Total revenues and expenses on investment properties 507 (208) 517 (226)
Revenues and expenses on real estate development operations - (11) 25 (9)Provision charges/reversals on real estate development operations 3 (1) 3 (1)Total revenues and expenses on real estatedevelopment operations 3 (12) 28 (10)
Public-interest programs - (16) - (65)Provision charges/reversals on public-interest programs 1 - 13 (1)Total revenues and expenses on public-interest programs 1 (16) 13 (66)
Expenses rebilled, revenues recredited and expenses transferred 31 - 51 -
Other miscellaneous operating revenues and expenses 345 (243) 260 (230)Provision charges/reversals on other operating revenues and expenses 12 (16) 20 (18)Total other operating revenues and expenses 357 (259) 280 (248)
OTHER OPERATING BANKING REVENUES AND EXPENSES 899 (495) 889 (550)
NET OPERATING BANKING REVENUES AND EXPENSES 404 339
(EURO MILLIONS) 2002 2001 Proforma
Earned premiums and contributions, paid or accrued 7,736 7,286Cost of benefits including changes in technical provisions (9,926) (9,588)Net investment income 2,940 2,924
GROSS MARGIN ON INSURANCE ACTIVITIES 750 622
Of which gross margin on life business 633 541Of which gross margin on non-life business 117 81
This is the gross margin generated mainly by CNP Assurances, which was consolidated proportionally for 43.20% and 42.98%, respectively, in the firstand second halves of 2002, as well as the insurance subsidiaries of EULIA that were consolidated proportionally (Ecureuil IARD, Foncier Assurance,Saccef, CEGI, Socamab, CDC IXIS Financial Guaranty).
Note 27 – Gross Margin on Insurance Activities
3/conso/p70_83/US_BAG 30/07/2003 16:41 Page 76
![Page 33: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/33.jpg)
Caisse des Dépôts Group - Annual Report 2002 77
RECONCILIATION OF GROSS MARGIN AND NET RECURRING INCOME
(EURO MILLIONS) 2002 2001 Proforma Life Non-life TOTAL Life Non-life TOTAL
Gross margin of life business 633 117 750 541 81 622Dividends from equity holdings contributing to net technical income - (1) (1) - - -Restatement of intra-group eliminations in gross margin (38) - (38) (58) 1 (57)Attributable payroll expenses before intra-group eliminations (87) (24) (111) (76) (12) (88)Other attributable administrative expenses before intra-group eliminations (88) (66) (154) (77) (53) (130)Net operating amortization and depreciation (11) (2) (13) (8) (1) (9)Net income from investments transferred and other adjustments (102) (14) (116) (101) (16) (117)Net technical income of life business included in consolidation 307 10 317 221 - 221Employee profit sharing (5) - (5) (3) - (3)Net income from investments transferred 102 14 116 101 16 117Net recurring income of life business included in consolidation 404 24 428 319 16 335
TOTAL NET RECURRING INCOME (100%) 936 50 986 739 37 776
(EURO MILLIONS) 2002 2001 Proforma
Sales and other operating revenues 2,253 1,768Purchases consumed and other operating expenses (646) (452)
NET INCOME FROM OTHER ACTIVITIES 1,607 1,316
The above relates to the C3D Group only, other than the investment property activities that are included in other banking operating revenues and expenses.
(EURO MILLIONS) 2002 2001 Proforma
Salaries (1,613) (1,453)Retirement expenses and related provision charges and reversals (9) (35)Other social charges (506) (453)Incentive programs and profit-sharing (48) (32)Payroll taxes (108) (100)Provision charges and reversals (16) (2)
PAYROLL EXPENSES (2,300) (2,075)
Note 28 – Net Income from other Activities
Note 29 – Payroll Expenses
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
3/conso/p70_83/US_BAG 30/07/2003 16:41 Page 77
![Page 34: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/34.jpg)
78
Consolidated Financial Statements
(Euro millions) 2002 2001 Proforma
Provision charges in respect of:Impairment of receivables (107) (132)Risks on signature commitments (8) (18)Counterparty risks (including sector risk provisions) (55) (63)Provision charges (170) (213)Reversals of provisions for:Impairment of receivables 103 93Risks on signature commitments 11 26Counterparty risks 28 135Other provisions for risks - 1Reversals of provisions 142 255Losses and collections Losses on irrecoverable receivables and collections (51) (89)
Losses and collections (51) (89)
COST OF RISK (79) (47)
(EURO MILLIONS) 2002 2001 Proforma
Gains and losses on disposals of tangible and intangible fixed assets 20 2Gains and losses on disposals of long-term equity holdings and on advances 6 224Provision charges and reversals on long-term equity holdings and advances 10 (35)
Net gains (losses) on transactions concerning long-term equity holdings and advances 16 189
Net gains (losses) on transactions concerning investment securities (1) -Provision charges and reversals on investment securities (4) -
Net gains (losses) on transactions concerning investment securities (5) -Gains and losses on transactions concerning long-term equity holdings and investment securities 11 189
GAINS AND LOSSES ON FIXED ASSETS 31 191
As of December 31, 2001, the capital gain from the sale of a 3.4% equity interest in CDC IXIS to Sanpaolo IMI accounted for the bulk of gains on fixedassets.
(EURO MILLIONS) 2002 2001 Proforma
Net amortization and depreciation (233) (216)Provisions against operating fixed assets (9) (9)Reversal of provisions against operating fixed assets 10 13Net provisions against operating fixed assets 1 4
NET AMORTIZATION, DEPRECIATION AND PROVISIONS ON FIXED ASSETS (232) (212)
Note 30 – Net Amortization, Depreciation and Provisions on Fixed Assets
Note 31 – Cost of Risk (Net Appropriation to Provisions)
Note 32 – Gains and Losses on Fixed Assets
3/conso/p70_83/US_BAG 30/07/2003 16:41 Page 78
![Page 35: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/35.jpg)
Caisse des Dépôts Group - Annual Report 2002 79
A - BREAKDOWN OF DEFERRED AND CURRENT INCOME TAX AND EXPENSES
(EURO MILLIONS) 2002 2001 Proforma
Current income tax (424) (488)Deferred tax 47 (69)
TAX CHARGE (377) (557)
B - BREAKDOWN OF DEFERRED TAX ASSETS AND LIABILITIES
(EURO MILLIONS) 2002 2001 Proforma
Tax credits (1) 226 280Timing differences (309) (349)Carryforward tax losses (2) 88 119Deferred tax assets 423 555Deferred tax liabilities (418) (505)
NET DEFERRED TAXES CARRIED ON THE BALANCE SHEET 5 50
(1) Pursuant to paragraph No. 2110 of CRC regulation No. 99-07 on the consolidation rules of companies subject to the CRBF, in 2001 CDC IXIS Groupperformed due diligence and additional audits that led to the recognition of a deferred tax asset of $363 million, which is included in the acquisition priceof CDC IXIS Asset Management North America L.P. This deferred tax asset is being written back over a period of 15 years using an actuarial method. As of December 31, 2002, it totaled €314 million in the financial statements of CDC IXIS AM and €226 million in those of Caisse des Dépôts Group.
(2) The Group chose to limit the deferred tax assets recognized in respect of the tax losses of CDC IXIS Asset Management North America to the portionthat could be recovered within a five-year period. This prudential measure resulted in CDC IXIS AM recording $93 million deferred tax charge as ofDecember 31, 2002 (€99 million based on the average exchange rate for the year), while for its part Caisse des Dépôts Group recorded $67 million (€71 million).
Note 33 – Income Tax
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
3/conso/p70_83/US_BAG 30/07/2003 16:41 Page 79
![Page 36: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/36.jpg)
80
Consolidated Financial Statements
(EURO MILLIONS) CNP C3D CDC EULIA Total Assurances sub-group sub-group Alliance sub-group
Interest and similar revenues - 16 1,971 8,412 10,399Treasury and interbank transactions - - 382 4,397 4,779Customer transactions - 15 129 1,578 1,722Bonds and other fixed-income securities - 1 1,338 1,123 2,462Other interest and similar revenues - - 122 1,314 1,436Interest and similar expenses (1) (52) (1,415) (9,856) (11,324)Treasury and interbank transactions (1) (46) (721) (4,888) (5,656)Customer transactions - (6) (537) (373) (916)Bonds and other fixed-income securities - - (157) (2,391) (2,548)Other interest and similar expenses - - - (2,204) (2,204)Revenues from variable income securities 2 7 327 133 469Commissions (Revenues) 75 - 25 855 955Commissions (Expenses) (9) - (19) (190) (218)Gains or losses on trading securities (48) (8) 72 1,518 1,534Gains or losses on available-for-sale securities and similar transactions (1) 2 (548) 756 209Other net banking operating revenues and expenses (13) 207 62 148 404Gross margin on insurance activities 693 - - 57 750Net revenues from other activities - 1,607 - - 1,607
NET BANKING INCOME 698 1,779 475 1,833 4,785
Operating expenses (256) (1,465) (392) (1,295) (3,408)Payroll expenses (119) (874) (522) (785) (2,300)Other administrative expenses (137) (627) (236) (532) (1,532)Rebillings - 36 366 22 424Net depreciation, amortization and provision charges (13) (94) (64) (61) (232)
GROSS INCOME FROM OPERATIONS 429 220 19 477 1,145
Cost of risk - (4) (15) (60) (79)
NET INCOME FROM OPERATIONS 429 216 4 417 1,066
Net income from investments accounted for by the equity method (5) 3 12 26 36Gains or losses on fixed assets - 31 (36) 36 31
NET RECURRING INCOME BEFORE INCOME TAX 424 250 (20) 479 1,133
Net non-recurring income (expenses) 1 - (1) 6 6Income tax (111) (56) (21) (189) (377)Net amortization of goodwill on acquisitions (37) (38) (1) (155) (231)Net movement in FGBR - - 259 7 266Minority interests (43) (49) 11 (6) (87)
NET INCOME, GROUP SHARE 234 107 227 142 710
Note 34 – Income Statement by Business Segment
3/conso/p70_83/US_BAG 30/07/2003 16:41 Page 80
![Page 37: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/37.jpg)
Caisse des Dépôts Group - Annual Report 2002 81
(EURO MILLIONS) Europe United States Asia Consolidated total
NET BANKING INCOME 4,206 576 3 4,785
Operating expenses (2,931) (474) (3) (3,408)Payroll expenses (1,948) (350) (2) (2,300)Other administrative expenses (1,404) (127) (1) (1,532)Rebillings 421 3 - 424Net depreciation, amortization and provision charges (217) (15) - (232)
GROSS INCOME FROM OPERATIONS 1,058 87 - 1,145
Cost of risk (71) (8) - (79)
NET INCOME FROM OPERATIONS 987 79 - 1,066
Net income from investments accounted for by the equity method 31 5 - 36Gains or losses on fixed assets 33 (2) - 31
NET RECURRING INCOME BEFORE INCOME TAX 1,051 82 - 1,133
Net non-recurring income (expenses) 6 - - 6Income tax (295) (82) - (377)Net amortization of goodwill on acquisitions (44) (187) - (231)Net movement in FGBR 266 - - 266Minority interests (86) (1) - (87)
NET INCOME, GROUP SHARE 898 (188) - 710
Note 35 – Income Statement by geographical Area
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
3/conso/p70_83/US_BAG 30/07/2003 16:41 Page 81
![Page 38: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/38.jpg)
82
Consolidated Financial Statements
2001Reported
Interest and similar revenues 8,943Treasury and interbank transactions 4,699Customer transactions 534Bonds and other fixed-income securities 2,027Other interest and similar revenues 1,683
Interest and similar expenses (10,384)Treasury and interbank transactions (5,045)Customer transactions (1,075)Bonds and other fixed-income securities (1,916)Other interest and similar expenses (2,348)
Revenues from variable income securities 518
Commissions (Revenues) 1,228
Commissions (Expenses) (188)
Gains or losses on trading securities 1,714
Gains or losses on available-for-sale securities and similar transactions 1,410
Other net banking operating revenues and expenses 271
Gross margin on insurance activities 505
Net revenues from other activities 1,316
NET BANKING INCOME 5,333
Operating expenses (3,189)Payroll expenses (2,143)Other administrative expenses (1,488)Rebillings 442
Net depreciation, amortization and provision charges (211)
GROSS INCOME FROM OPERATIONS 1,933
Cost of risk (41)
NET INCOME FROM OPERATIONS 1,892
Net income from investments accounted for by the equity method 58
Gains or losses on fixed assets 186
NET RECURRING INCOME BEFORE INCOME TAX 2,136
Net non-recurring income (expenses) 1
Income tax (585)
Net amortization of goodwill on acquisitions (77)
Net movement in FGBR (45)
Minority interests (73)
NET INCOME, GROUP SHARE 1,357
(1) Since 2002, commissions paid to new business providers are recorded in net banking income and no longer under operating expenses (see principles for establishing the consolidated financial statements). The 2001 financial statements were therefore restated by applying this principle.
The table below reconciles the reported and proforma 2001 income statements.
The proforma income statement presents the items as if the Alliance transactions realized in late 2001 had been completed as of January
1 of that year. The proforma income statement therefore integrates the results of companies contributed by Caisse d'Epargne Group (Entering
Companies column) and factors in changes in percentages held as well as the changes in consolidation scope resulting from the Alliance
transactions, in particular the proportional consolidation of CDC IXIS and CFF at the respective rates of 79.36% and 45.50% and the increa-
sed holding in CNP Assurances following the consolidation of the long-term equity holdings of the Regional Savings Banks by CNCE.
Note 36 – Consolidated Income Statement as of December 31, 2001 -Reconciliation of Reported and Proforma Income Statements
3/conso/p70_83/US_BAG 30/07/2003 16:41 Page 82
![Page 39: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/39.jpg)
Caisse des Dépôts Group - Annual Report 2002 83
Entering Effect of change Effect of intragroup Change in accounting 2001 companies in percentage held eliminations within Caisse method for the asset Proforma
des Dépôts sub-group management activity (1)
14 407 372 9,736- (544) 366 4,521
13 891 - 1,4381 279 - 2,307- (219) 6 1,470
(8) 11 (231) (10,612)(8) 409 (226) (4,870)- 1 - (1,074)- (732) (5) (2 ,653)- 333 - (2,015)
3 (28) - 493
- (266) 1 963
(1) 11 (1) (93) (272)
- (224) (142) 1,348
3 (214) (1) 1,198
- 79 (11) 339
31 86 - 622
- - - 1,316
42 (138) (13) (93) 5,131
(24) 89 13 93 (3,018)(7) 75 - (2,075)
(17) 15 (2) 93 (1,399)- (1) 15 456
(1) - - (212)
17 (49) - - 1,901
- (6) - (47)
17 (55) - - 1,854
44 (33) - 69
- 5 - 191
61 (83) - - 2,114
- 21 - 22
(5) 33 - (557)
- 8 - (69)
- (17) - (62)
1 14 - (58)
57 (24) - - 1,390
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
3/conso/p70_83/US_BAG 30/07/2003 16:41 Page 83
![Page 40: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/40.jpg)
84
Consolidated Financial Statements
CDC (Central Sector) FULL 100.00 100.00 FULL 100.00 100.00CDC KINEON FULL 100.00 99.90 FULL 100.00 100.00CDC PME FULL 100.00 100.00 FULL 100.00 100.00DABFI FULL 100.00 76.74 FULL 100.00 98.88INFORMATIQUE CDC FULL 100.00 76.70 FULL 100.00 99.77CDC HOLDING FINANCE(ex SODEVE) FULL 100.00 100.00 FULL 100.00 100.00
DFCI FULL 100.00 76.33 FULL 100.00 99.28
CDC PME Croissance FULL 100.00 56.64 - - -
BDPME GROUP EQUI 43.69 43.69 EQUI 39.66 39.66
BDPME EQUI 43.69 43.69 EQUI 39.66 39.66AUXI CONSEIL EQUI - 42.70 EQUI - 38.73AUXICOMI EQUI - 42.70 EQUI - 38.73AUXIFINANCES EQUI - 42.70 EQUI - 38.73AUXIMURS EQUI - 42.70 EQUI - 38.73AVENIR ENTREPRISES EQUI - 32.86 EQUI - 28.08AVENIR INVESTISSEMENTS EQUI - 42.70 EQUI - 38.73AVENIR PME SUCCESSION EQUI - 20.51 EQUI - 18.43AVENIR TOURISME EQUI - 23.67 EQUI - 19.62BATIROC BRETAGNE EQUI - 21.37 EQUI - 19.38BIOTECH GARANTIE EQUI - 25.83 - - -BRETAGNE DEVELOPPEMENT EQUI - 21.37 EQUI - 19.38CEPME EQUI - 42.70 EQUI - 38.73CIE AUXILIAIRE DU CEPME (CAC) EQUI - 42.70 EQUI - 38.73ENERBAIL EQUI - 42.70 EQUI - 38.73PROCREDIT PROBAIL EQUI - 41.47 EQUI - 37.61SOFARIS EQUI - 25.43 EQUI - 21.07SOFARIS REGIONS EQUI - 13.35 EQUI - 11.06
CNP ASSURANCES GROUP PROP 42.98 42.98 PROP 43.20 43.20
CNP ASSURANCES PROP 42.98 42.98 PROP 43.20 43.20CARIVITA EQUI - 8.60 EQUI - 8.64ASSURBAIL PROP - 42.58 PROP - 42.80ASSURPOSTE PROP - 21.49 PROP - 21.60CAIXA SEGUROS(ex CNP DO BRASIL) PROP - 21.81 PROP - 21.92CNP IAM PROP - 42.98 PROP - 43.20CNP IMMOBILIER PROP - 42.98 PROP - 43.19CNP INTERNATIONAL PROP - 42.98 PROP - 43.20CNP SEGUROS DE VIDA PROP - 32.87 PROP - 33.04GLOBAL PROP - 35.90 PROP - 32.72GLOBAL VIDA PROP - 35.92 PROP - 31.92
INVESTISSEMENTTRESOR VIE - ITV PROP - 42.98 PROP - 43.20PREVIPOSTE PROP - 42.98 PROP - 43.20PREVISOL EQUI - 12.83 EQUI - 12.89PREVISOL RETIRO EQUI - 12.82 EQUI - 12.88PREVISOL VIDA EQUI - 12.84 EQUI - 12.90PROVINCIA SEGUROS DE VIDA EQUI - 17.19 EQUI - 17.28SICAC PROP - 42.98 PROP - 43.20ECUREUIL VIE PROP - 21.49 PROP - 21.60
FONCIERE ANATOLEFRANCE GROUP FULL 100.00 100.00 FULL 100.00 100.00
SOCIETE FONCIEREANATOLE FRANCE FULL 100.00 100.00 FULL 100.00 100.00QUAI ANATOLE FRANCE SCI FULL 100.00 100.00 FULL 100.00 100.00SARL ATHOS FULL 100.00 100.00 FULL 100.00 100.00SCI ATHOS FULL 100.00 100.00 FULL 100.00 100.00SCI ATRIUM FULL 100.00 100.00 FULL 100.00 100.00
SCI AUSTERLITZ FULL 100.00 100.00 FULL 100.00 100.00SCI RIVE GAUCHE FULL 100.00 100.00 FULL 100.00 100.00URBA CLUB FULL 100.00 100.00 FULL 100.00 100.00
CAISSE NATIONALE DESCAISSES D'EPARGNE GROUP EQUI 35.00 35.00 EQUI 35.00 35.00
CAISSE NATIONALEDES CAISSES D'EPARGNE EQUI 35.00 35.00 EQUI 35.00 35.00CNETI EQUI 26.91 26.91 EQUI 26.08 26.08HOLASSURE EQUI 35.00 35.00 EQUI 35.00 35.00SOPASSUR EQUI 17.49 17.49 EQUI 17.49 17.49
C3D GROUP FULL 100.00 100.00 FULL 100.00 100.00
C3D FULL 100.00 100.00 FULL 100.00 100.00
SCIC GROUPE FULL 100.00 100.00 FULL 100.00 100.00
• REAL ESTATE AND DEVELOPMENT DIVISION AND HOLDING 100.00 100.00 100.00 100.00
SCIC SA FULL 100.00 100.00 FULL 100.00 100.00
CIE IMMOBILIERE & COMMERCIALE LES FLANADES (CICF) (*) (*) (*) FULL - 92.69%
CIE IMMOBILIERE DE LA REGION PARISIENNE (CIRP) FULL - 92.73 FULL - 92.65FONCIERE COMMERCES IDF FULL - 100.00 - - -
SA POUR LA CONSTRUCTION DE LOGEMENTSECONOMIQUES (SACLE) FULL - 100.00 FULL - 100.00SCI LOCATIVES IDF (78 stés) FULL - - FULL - -SCI LOCATIVES REGIONS (27 stés) FULL - - FULL - -
EMGP FULL 100 81.60 - - -PDM 1 FULL - - - - -PDM 2 FULL - - - - -PDM 3 FULL - - - - -BASSIN NORD SCI FULL - - - - -BATI GAUTIER FULL - - - - -CFI (CHEMIN DE FER INDUSTRIEL) FULL - - - - -MANUTRA SECURITE FULL - - - - -MANUTRA SA FULL - - - - -SEREAL FULL - - - - -SNC LE PARC DU MILLENAIRE FULL - - - - -SCI 65 VICTOR HUGO FULL - - - - -SCI LE PARC DU MILLENAIRE FULL - - - - -
• MEDICAL RESIDENCESBEL-AIR CLAMART SA FULL - 91.15 - - -CAYO LARGO SA FULL - 91.15 FULL - 87.08CLINIQUE DU VAL DE SEINE SA FULL - 90.88 - - -HOLDING VAL DE SEINE FULL - 91.15 - - -LA PROVENCALE SA FULL - 91.15 FULL - 87.08LE SPLENDID SA FULL - 91.15 FULL - 87.08MF DEVELOPPEMENT SA FULL - 91.15 FULL - 87.08SA MEDICA France (ex SEMACS) FULL - 91.15 FULL - 87.08SANTEL SA FULL - 91.15 FULL - 87.08SARL CENTRE CONV NEUVILLE (CCN) FULL - 91.15 FULL - 87.08SARL CENTRE MEDICAL DES ALPILLES (CMA) FULL - 91.15 FULL - 87.08SARL CENTRE MEDICAL DU VENTOUX (CMV) FULL - 91.15 FULL - 87.08SARL LA ROCHE SAMUEL FULL - 91.15 FULL - 87.08SARL LA ROCHETTE FULL - 91.15 FULL - 87.08
Companies METH % % METH % % METH % % METH % %
2002 control held 2001 control held 2002 control held 2001 control held(1) 2002 2002 (1) 2001 2001 (1) 2002 2002 (1) 2001 2001
Scope of Consolidation
Note 37
4/conso/p84_91/US_BAG 30/07/2003 16:41 Page 84
![Page 41: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/41.jpg)
Caisse des Dépôts Group - Annual Report 2002 85
SCI LE SPLENDID FULL - 91.15 FULL - 87.08SNC LES PINS FULL - 90.24 FULL - 86.21
SOCIETE DE DEVELOPPEMENT ETDE PARTICI FINANCIERES (SDFI) FULL - 91.15 FULL - 100.00SOLISANA FULL - 91.15 - - -
EIS GROUP E.I.S. SA FULL - 100.00 FULL 100.00 87.08QUALISANTE SUISSE SA FULL - 84.99 FULL - 74.02
RESIDENCE AUTOMNE DE CHALONS SA FULL - 99.99 FULL - 86.97
RESIDENCE AUTOMNE DE DINARD SA FULL - 99.99 FULL - 86.97
RESIDENCE AUTOMNEDE LAXOU SARL FULL - 99.79 FULL - 86.92
RESIDENCE AUTOMNE DE NEUVILLE SA FULL - 99.99 FULL - 86.97GRAPA SARL FULL - 99.79 FULL - 86.77INVAMURS SA FULL - 100.00 FULL - 87.08JARDINS DE SERMAIZE SAS FULL - 99.99 FULL - 87.07JARDINS D'HESTIA SA FULL - 99.90 FULL - 86.96LA MOLE D'ANGOULINS SA FULL - 99.98 FULL - 86.92LE MOULIN DE L'ISLE SAS FULL - 99.99 FULL - 87.07POLYMED SANTE SA FULL - 99.98 FULL - 87.06QUALISANTE SA FULL - 99.99 FULL - 87.07
RESIDENCE AUTOMNEDE SARZEAU SA FULL - 99.99 FULL - 87.02
RESIDENCE AUTOMNEDU MANS SARL FULL - 99.79 FULL - 86.94
RESIDENCE AUTOMNE LA FERME SARL FULL - 99.99 FULL - 86.90
RESIDENCE AUTOMNE LA GARE SARL FULL - 99.99 FULL - 86.90
RESIDENCE AUTOMNE LILLE STE THERESE SARL FULL - 99.79 FULL - 86.77
RESIDENCE AUTOMNELYON GERLAND SARL FULL - 99.79 FULL - 86.94
RESIDENCE AUTOMNEND SANILHAC SA FULL - 99.99 FULL - 87.02
RESIDENCE AUTOMNESABLES D'OLONNE SARL FULL - 99.79 FULL - 86.90
RESIDENCE AUTOMNESAINT MALO SARL FULL - 99.79 FULL - 86.90
RESIDENCE AUTOMNE ST GEORGES SARL FULL - 99.79 FULL - 86.77
RESIDENCE AUTOMNEVILLARS DOMBES SARL FULL - 99.59 FULL - 86.77SA DE CHAINTREAUVILLE FULL - 95.95 FULL - 39.19SA INVAMIS FULL - 99.79 FULL - 86.93SA SOCEFI FULL - 99.99 FULL - 87.08SCI BICHAT FULL - 99.99 FULL - 86.97SCI DE L'EUROPE FULL - 99.99 FULL - 87.07SCI LAXOU FULL - 51.00 FULL - 44.40SCI LES CHENES FULL - 99.91 FULL - 86.98SCI PIERRE DEBOURNOU FULL - 99.79 FULL - 86.90SCI ST JEAN FULL - 99.79 FULL - 87.08SDSA SA FULL - 99.99 FULL - 86.90SERAPA SARL FULL - 99.99 FULL - 87.07SERPA SARL FULL - 99.99 FULL - 87.07SIF SA FULL - 99.99 FULL - 87.08SNC DE DINARD FULL - 99.79 FULL - 86.90SNC DE L'EUROPE FULL - 99.99 FULL - 87.07SOGEMAPAD SARL FULL - 99.99 FULL - 87.07ST JEAN CEDRES (BRIVE) SA FULL - 99.99 FULL - 87.05CEDREPA INVESTISMTS SA FULL - 99.99 FULL - 87.07
• REAL ESTATE DEVELOPMENTESPACE & HABITAT FULL - 45.52 FULL - 45.52
GROUPE CAPRI BORDEAUX (ex CAPRI ATLANTIQUE)(43 sociétés) FULL - 65.00 FULL - 65.00
GROUPE CAPRI LYON (71 sociétés) FULL - 65.00 FULL - 65.00
GROUPE CAPRI PARIS(42 sociétés) FULL - 65.00 FULL - 65.00GROUPE ELLUL (36 sociétés) FULL - 33.15 - - -
•REAL ESTATE SERVICES
PROJECT MANAGEMENTANTONY PARC SNC FULL - 100.00 - - -CENTRE EST PROMOTION SNC FULL - 100.00 - - -CENTRE OUEST PROMOTION SNC FULL - 100.00 - - -GENERALE DE PROJET SA FULL - 99.99 FULL - 99.99
GRANDE ARCHE ARCHITECTUREAMENAGEMENT (G3A) (SA) FULL - 100.00 FULL - 99.99NERUDA FONTANOTS SCI FULL - 100.00 - - -NORD PROMOTION SNC FULL - 100.00 - - -ODYSSEUM 2 SCI FULL - 55.00 - - -PB31 PROMOTION SNC PROP - 50.00 - - -RESA ESPANA FULL - 67.00 FULL - 64.71SAFIS - - - EQUI - 1.00SANESCO SA EQUI - 40.00 EQUI - 40.00SCIC DEVELOPPEMENT SA FULL - 100.00 FULL - 100.00SCIC ESPANA SA FULL - 100.00 FULL - 96.58SETRHI SA FULL - 99.88 FULL - 99.86SNC CD CITES FULL - 100.00 FULL - 100.00TERTIAL SNC FULL - 100.00 FULL - 100.00URBIS ATLANTIQUE FULL - 90.00 - -
FACILITIES MANAGEMENTEUROGEM SAS FULL - 60.00 FULL - 60.00EURIS Belgique FULL - 60.00 FULL - 57.56EUROGEM SA FULL - 60.00 FULL - 57.56EUROGEM SNC FULL - 60.04 FULL - 57.56GESTEC SAS FULL - 60.00 - - -KLEBER FM SA FULL - 45.00 - - -MANUTRA SARL EQUI - 27.00 EQUI - 45.00PROPERTIA FM SA PROP - 29.40 - - -STHAL SNC PROP - 30.00 PROP - 28.78TREGS SARL PROP - 30.00 PROP - 28.78
PROPERTY MANAGEMENTAGIFRANCE SA FULL - 100.00 FULL - 100.00EUROCAMPUS SARL FULL - 60.00 FULL - 60.00EUROSTUDIOMES SNC FULL - 100.00 FULL - 99.98GFF AQUITAINE SASU FULL - 100.00 FULL - 100.00GFF ATLANTIQUE SA FULL - 100.00 - - -
GFF FINCAS ANZIZU SARL(Espagne) FULL - 89.99 - - -
GFF HABITAT SASU (ex REGIONS - HABITATS) FULL - 100.00 FULL - 100.00GFF INSTITUTIONNELS SASU FULL - 100.00 FULL - 100.00GFF LES FLANDRES SASU FULL - 100.00 FULL - 100.00GFF MEDITERRANEE SASU FULL - 100.00 FULL - 100.00GFF PATRIMOINE SASU FULL - 100.00 FULL - 100.00GFF POLSKA SA - - - EQUI - 100.00GFF PROVENCE SASU FULL - 100.00 FULL - 100.00GFF RHONES ALPES SA FULL - 100.00 FULL - 99.91GFF TOULOUSE SASU FULL - 100.00 FULL - 100.00GFF VALORIAL SARL FULL - 100.00 FULL - 100.00
GROUPEMENT FONCIER DE FRANCE (GFF) SA FULL - 100.00 FULL - 100.00
Companies METH % % METH % % METH % % METH % %
2002 control held 2001 control held 2002 control held 2001 control held(1) 2002 2002 (1) 2001 2001 (1) 2002 2002 (1) 2001 2001
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
4/conso/p84_91/US_BAG 30/07/2003 16:41 Page 85
![Page 42: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/42.jpg)
86
Consolidated Financial Statements
MARTEL ET BOURDAIS SAS FULL - 100.00 - - -MONTPARNASSE SERVICES SARL FULL - 100.00 FULL - 99.80SPGI SAS FULL - 100.00 - - -
SERVICES TO SEMsBETURE CONSEIL EQUI - 99.99 EQUI - 100.00CABINET ADEXI - - - EQUI - 30.00SOCIETE CENTRALEPOUR L'EQUIPEMENT DU TERRITOIRE (SCET) FULL - 100.00 FULL - 100.00SODIE - - - EQUI - 45.00SOFADEV - - - EQUI - 44.97
TRANSDEV GROUPE FULL 100.00 68.01 FULL 100.00 92.08
• HOLDINGTRANSDEV SA FULL - 68.01 FULL - 92.08COFITREC FULL - 68.01 FULL - 92.08TRANSAMO FULL - 67.84 FULL - 91.85TRANSDATA FULL - 68.01 FULL - 92.08TRANSPART FULL - 68.01 FULL - 92.08
• REGIONAL INTERCITY TRANSPORTATIONCARS ARIEGE PYRENEES SA FULL - 67.98 FULL - 91.94CARS BIZIERE SA FULL - 61.21 - - -CARS COMTADINS SA FULL - 67.98 FULL - 92.04
CIE DES CHEMINS DE FER CAMBRESIS (CFC) SA FULL - 66.83 FULL - 87.97
CIE TRANSPORTS DE LA COMMUNAUTE SNC (CTC) FULL - 54.41 FULL - 73.66
COMPAGNIE AUTOCARS DE PROVENCE SA (CAP) FULL - 67.98 FULL - 92.04COURRIERS DE L'AUBE SCS FULL - 63.77 FULL - 86.34FOURNIER SARL FULL - 68.01 FULL - 92.08MARTIN FRERES SNC FULL - 67.65 FULL - 91.60MONT BLANC BUS SARL FULL - 50.93 FULL - 68.96PROGESUD SA FULL - 34.67 FULL - 46.93PROVENCE TRAVEL FULL - 68.01 FULL - 92.08RAPIDES DE BOURGOGNE SNC FULL - 68.01 FULL - 92.08
RAPIDES DE COTE D'OR (RCO) SNC FULL - 68.01 FULL - 92.08RAPIDES DE SAONE ET LOIRE SNC FULL - 44.43 FULL - 60.16RAPIDES DU SUD EST SNC FULL - 67.98 FULL - 92.03RAPIDES DU VAL DE LOIRE SNC FULL - 68.01 FULL - 92.08
SOCIETE AUTOMOBILE DE PROVENCE SA PROP - 33.90 FULL - 45.90STCAR SARL PROP - 33.90 FULL - 45.90
STE NOUVELLE DES AUTOBUS AJACCIENS (SNAA) FULL - 67.93 FULL - 91.97STE TRANSPORT AGGLOMERATION CHALONNAISE SARL (STAC) FULL - 54.41 FULL - 73.66
STE TRANSPORTS AUTOMOBILE DU MIDI SNC(STADIMI) FULL - 67.98 FULL - 92.04TRANSAVOIE SA FULL - 67.66 FULL - 91.61TRANSDEV ALPES SA (ex CSIP) FULL - 68.00 FULL - 92.07TRANSDEV EST SA FULL - 68.01 FULL - 92.08TRANSDEV LORRAINE SAS FULL - 68.01 - - -
TRANSDEV SUD SA (ex SOCIETE DE TRANSPORTS REGIONAUX (STR) FULL - 67.98 FULL - 92.04TRANS'L SARL FULL - 64.27 FULL - 87.02
TRANSPORTS CAGNES SUR MER SA PROP - 34.00 FULL - 46.04VISUAL (*) (*) (*) FULL - 92.08VOYAGES CROLARD SA FULL - 67.99 FULL - 92.05
• PARIS REGION INTERCITY TRANSPORTATION AEROPASS SA FULL - 68.00 FULL - 92.07AIRCAR SA FULL - 68.00 FULL - 92.06
AUTOBUS DE MARNE LA VALLEE SA (AMV) FULL - 60.41 FULL - 77.26CARS BRIDET SA FULL - 67.94 FULL - 91.99CARS D'ORSAY SA FULL - 67.97 FULL - 92.03CARS LE CAPLAIN SA FULL - 67.96 FULL - 92.01
CIE EXPLOITATION AUTOMOBILE ET DE TRANSPORT SA (CEAT) FULL - 67.99 FULL - 92.06EUROPE AUTOCARS SA FULL - 67.99 FULL - 92.06INTERVAL SA FULL - 67.96 FULL - 87.66
SOCIETE DE TRANSPORT DU BASSIN CHELLOIS SAS (STBC) FULL - 54.41 FULL - 73.66SOFITRANS SA FULL - 68.00 FULL - 92.07
TRANSDEV PARIS EST SA (ex COFRAST) FULL - 68.01 FULL - 92.08TRANSDEV PARIS SUD (ex CARAT) FULL - 68.01 FULL - 92.08
TRANSPORTS URBAIN DE CHELLES SA (TUC) FULL - 67.90 FULL - 91.92VAL D'EUROPE AIRPORT SA (VEA) FULL - 57.49 FULL - 77.81VISUAL IDF SNC FULL - 67.33 - - -
• URBAN TRANSPORTATION FranceSEMTAO SAEM EQUI - 23.12 EQUI - 31.31
SOCIETE DOUAISIENNE DE TRANSPORT SA FULL - 67.99 FULL - 92.05SODIPARC SAEM EQUI - 16.16 EQUI - 21.88STAB SA FULL - 60.87 FULL - 82.41
TRANSPORT EN COMMUN DE LA REGION D'AVIGNON SA (TCRA) FULL - 68.01 FULL - 92.08
TRANSPORTS COMMUNS REGION METZ SAEM (TCRM) EQUI - 27.07 EQUI - 36.65
• INTERNATIONALLONDON UNITED 1994 LTD FULL - 68.01 FULL - 92.08LONDON UNITED BUSWAYS LTD FULL - 68.01 FULL - 92.08METROLINK PTY PROP - 34.00 PROP - 46.04
SOVEREIGN BUSES LONDON LIMITED FULL - 68.01 - - -STANWELL LTD FULL - 68.01 FULL - 92.08TRANSDEV AUSTRALIA PTY FULL - 68.01 FULL - 92.08TRANSDEV NEW SOUTH WALES FULL - 68.01 FULL - 92.08TRANSDEV PLC FULL - 68.01 FULL - 92.08TRANSDEV Portugal (succursale) FULL - 68.01 - - -TRANSDEV Portugal SA FULL - 68.01 FULL - 92.08TRANSDEV TRAM UK PLC FULL - 68.01 FULL - 92.08TRANSDEV VICTORIA PTY FULL - 68.01 FULL - 92.08
EGIS GROUP FULL 100.00% 82.93% FULL 100.00% 78.99%
• HOLDINGEGIS DEUTSCHLAND GMBH FULL - 82.93% FULL - 78.99%EGIS INGENIERIE SA FULL - 82.93% FULL - 78.99%EGIS PROJECT VICTORIA PTY EQUI - 82.93% EQUI - 78.99%EGIS SA FULL - 82.93% FULL - 78.99%
• ENGINEERING DIVISIONBCEOM SA FULL - 82.92% FULL - 78.98%BDPA SA FULL - 82.93% FULL - 78.98%BETEREM INFRASTRUCTURE SA FULL - 82.92% FULL - 78.98%BETURE INFRASTRUCTURE SA FULL - 82.93% FULL - 78.97%INGENIERIE DES SYSTEMES D'INFORMATIONS ET DE SECURITE (ISIS) SA FULL - 82.93% FULL - 78.99%ITAL CONSULT SA EQUI - 24.21% EQUI - 23.06%JEAN MULLER INTERNATIONAL SA FULL - 82.92% FULL - 78.98%PRESENTS SARL SARL - - - FULL - 76.41%SCETAUROUTE INGENIERIE FULL - 82.93% FULL - 78.99%SEMALY FULL - 67.92% FULL - 64.69%SERALP INFRASTRUCTURE FULL - 82.92% FULL - 78.98%
Companies METH % % METH % % METH % % METH % %
2002 control held 2001 control held 2002 control held 2001 control held(1) 2002 2002 (1) 2001 2001 (1) 2002 2002 (1) 2001 2001
4/conso/p84_91/US_BAG 30/07/2003 16:41 Page 86
![Page 43: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/43.jpg)
Caisse des Dépôts Group - Annual Report 2002 87
SOCIETE METRO MARSEILLE (SMM) EQUI - 64.53% FULL - 61.46%GROUPE DORSCH CONSULT GMBH FULL - 82.93% FULL - 71.17%
DORSCH CONSULT ERFURT FULL - NC FULL - 71.17%AIRPLAN FULL - NC FULL - 56.94%BERLIN DORSCH CONSULT FULL - NC FULL - 71.17%BIRK HILLMAN FULL - NC FULL - 28.47%CDC CHEMNITZ FULL - NC FULL - 71.17%DC OST (*) (*) (*) FULL - 71.17%DORSCH CONSULT SOCIAL FULL - NC FULL - 71.17%DRESDEN DORSCH CONSULT FULL - NC FULL - 64.05%GITEC CONSULT FULL - NC FULL - 71.17%HYDROPROJECT FULL - NC FULL - 67.75%I DORSCH CONSULT FULL - NC FULL - 35.58%PLASSA FULL - NC FULL - 71.17%WEIDLEPLAN FULL - NC FULL - 71.17%
•PROJECT MANAGEMENT DIVISIONEGIS DORSCH DEVELOPPEMENT (EDD) SA FULL - 82.93% FULL - 71.15%EGIS PROJECTS GMBH FULL - 82.93% - - -EGIS PROJECTS SA FULL - 82.93% FULL - 78.99%TOLLAUST PTY LTD PROP - 33.17% PROP - 31.60%
• OPERATING DIVISIONADEGIS PROP - 41.46% - - -ATTIKES DIADROMES SA PROP - 40.63% PROP - 38.71%BHEGIS PROP - 41.46% - - -EGIS PROJECT ASIA PASIFIC FULL - 82.93% FULL 78.99%EGIS PORTS SA FULL - 82.93% FULL - 78.99%
EUROPE ATLANTIQUE TERMINAL (EAT) SA PROP - 26.95% PROP - 25.67%
GENERALE DE MANUTENTION PORTUAIRE (GMP) SA PROP - 41.46% PROP - 39.50%JELETRAN SA PROP - 41.46% EQUI - 39.50%
MANUTENTION TERMINAL NORD (MTN) SA PROP - 41.46% PROP - 39.50%
MANUTENTION TERMINAL NORD DEVELOPPEMENT(MTND) SA PROP - 41.46% PROP - 39.50%MGM FULL - 42.29% FULL - 40.28%OPERSCUT FULL - 53.90% - - -STALEXPORTS TRANSROUTE PROP - 37.32% PROP - 35.55%TRANSLINK INVESTMENT PTY PROP - 41.46% PROP - 39.50%TRANSROUTE INTERNATIONAL SA FULL - 82.93% FULL - 78.99%TRANSROUTE PHILIPPINES FULL - 82.93% FULL - 78.99%UK HIGHWAYS SERVICES LTD FULL - 45.61% FULL - 78.98%
COMPAGNIE DES ALPES SA FULL 100.00 53.18 FULL 100.00 43.33COMPAGNIE DES ALPES SA FULL - 53.18 FULL - 43.33
CENTRALE INVESTISSEMENTS ET LOISIRS SA (CIEL) FULL - 53.17 FULL - 43.32CIRI SPA - - - EQUI - 8.37
CMBF (COURMAYEUR MT BLANC) SPA FULL - 15.49 PROP - 12.64
COMPAGNIE DU MONT-BLANC SA (ex CMB) SA PROP - 8.58 PROP - 9.49DSF SA FULL - 43.05 FULL - 35.04DSG SA FULL - 43.05 FULL - 35.04FAVRE SPORTS SA FULL - 23.93 - - -FUNNIVIA DELLE ALPI SRL FULL - 27.12 FULL - 22.12GIE BREVENT FLEGERE - - - PROP - 6.49MERIBEL ALPINA SA FULL - 53.17 FULL - 43.27
MONT-BLANC COMPAGNIE SA (ex CMMG) (MBC) PROP - 11.65 PROP - 6.59SAAS - FEE BERGBAHNEN AG EQUI - 20.21 EQUI - 15.17SEHRT SARL SA PROP - 8.57 PROP - 8.60SELALP FULL - 50.58 - - -
SESTC FLEGERE (*) (*) (*) PROP - 6.35SETA (*) (*) (*) PROP - 6.56SHM SARL SA PROP - 8.58 PROP - 6.58SKI SHOP SA FULL - 53.18 FULL - 43.33
SOCIETE AMENAGEMENT TOURISTIQUE ARGENTIER (SATAL) (*) (*) (*) PROP - 8.60
SOCIETE DES MONTAGNES DE L'ARC SA (SMA) FULL - 48.92 FULL - 41.90SOGERTAM SA PROP - 8.58 PROP - 6.62
STE AMENAGEMENT ARVES GIFFRE SA FULL - 43.05 FULL - 35.04
STE AMENAGEMENT LA PLAGNE SA (SAP) FULL - 48.08 FULL - 37.68
STE CONSTRUCTION IMMOBILIERE VALLEE DES BELLEVILLE (SCIVABEL) SCI FULL - 43.41 FULL - 35.37
STE EXPLOITATION VALLEE DES BELLEVILLE SA (SEVABEL) FULL - 43.40 FULL - 35.37
STE TELEPHERIQUES DE LA GRANDE MOTTE SA (STGM) FULL - 41.34 FULL - 33.68
STE TELEPHERIQUES DE L'AIGUILLE GRIVE SA (STAG) FULL - 48.92 FULL - 41.90STMB SA (*) (*) (*) PROP - 6.62SWISSALP SA FULL - 53.18 FULL - 43.33TELEVERBIER SA EQUI - 10.79 EQUI - 8.79
• GREVIN Cie SA GROUPGREVIN & Cie FULL - 51.03 EQUI - 30.34BAGATELLE FULL - 51.02 - - -France MINIATURE FULL - 48.92 - - -AQUARIUM DU VAL DE LOIRE FULL - 51.02 - - -AQUARIUM GEANT DE SAINT-MALO FULL - 51.02 - - -LES PRODUCTIONS DU PARC FULL - 53.15 - - -MINI CHATEAUX DU VAL-DE-LOIRE FULL - 51.02 - - -MUSEE GREVIN FULL - 48.92 - - -S M V P FULL - 51.02 - - -
• Foreign subsidiariesCMBF (Italia) FULL - 15.49 - - -DOLFINARIUM (Nederland) FULL - 51.02 - - -FOR FUN (Allemagne) FULL - 51.02 - - -
GREVIN AVONTURENPARK HELLENDOORN (Nederland) FULL - 51.02 - - -
HARDERWIJK HELLENDOORN HOLDING (Nederland) FULL - 51.02 - - -ZEEDIERNPARK (Nederland) FULL - 51.02 - - -
VVF VACANCES GROUPVVF VACANCES SA FULL - 80.00 - - -VVF RESERVATION FULL - 80.00 - - -JUMBO TOURS SA EQUI - 27.98 - - -TOURING HOTEL SARL FULL - 80.00 - - -
C3D GROUP: HOLDING & OTHERALTEAU SA FULL - 51.00 FULL - 51.00BETURE CEREC - - - EQUI - 30.00BETURE SETAME - - - EQUI - 30.00C3D INVESTMENT SA FULL - 100.00 FULL - 51.30CREDES SA - - - FULL - 99.38FINANCIERE TRANSDEV FULL - 50.12 - - -
GROUPE BIPE & STRATORG INTERNATIONAL SA - - - EQUI - 37.78
GROUPE BETHURE/CAP ATRIUM SA FULL - 99.96 FULL - 99.96SADSI FULL - 99.96 FULL - 99.96
Companies METH % % METH % % METH % % METH % %
2002 control held 2001 control held 2002 control held 2001 control held(1) 2002 2002 (1) 2001 2001 (1) 2002 2002 (1) 2001 2001
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
4/conso/p84_91/US_BAG 30/07/2003 16:41 Page 87
![Page 44: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/44.jpg)
88
Consolidated Financial Statements
EULIA GROUP PROP 67.57 67.57 PROP 67.57 67.57
EULIA PROP 67.57 67.57 PROP 67.57 67.57CDC IXIS ITALIA HOLDING PROP 71.90 71.90 PROP 71.92 71.92BAIL ECUREUIL PROP 67.57 67.57 PROP 67.57 67.57ECUREUIL GESTION PROP 69.89 69.89 PROP 69.92 69.92ECUREUIL IARD PROP 67.57 43.92 PROP 67.57 43.92ECUREUIL PARTICIPATIONS PROP 67.57 67.57 PROP 67.57 67.57ECUREUIL VIE EQUI 33.64 33.64 EQUI 33.64 33.64GESTITRES PROP 71.10 46.93 PROP 71.10 46.93HOLGEST PROP 71.10 71.10 PROP 71.10 71.10
• CICOBAIL GROUP PROP 67.57 67.40 PROP 67.57 67.40CICOBAIL PROP 67.57 67.40 PROP 67.57 67.40CINERGIE PROP 67.57 67.47 PROP 67.57 67.47MUR ECUREUIL PROP 67.57 67.48 PROP 67.57 67.48
CREDIT FONCIER DE FRANCE GROUP PROP 45.69 45.69 PROP 45.50 45.50%CREDIT FONCIER DE FRANCE PROP 45.69 45.69 PROP 45.50 45.50
AUXILIAIRE DU CREDIT FONCIER DE FRANCE PROP 45.69 45.69 PROP 45.50 45.50
COFIMAB PROP 45.69 45.69 PROP 45.50 45.50
COMPAGNIE DE FINANCEMENT FONCIER PROP 45.69 45.69 PROP 45.50 45.50
COMPAGNIE FONCIERE DE CREDIT PROP 45.69 45.69 PROP 45.50 45.50
COMPAGNIE FONCIERE DE DEVELOPPEMENT - - - PROP 45.50 45.50CREDIT DE L'ARCHE PROP 45.69 45.69 PROP 45.50 45.50
CREDIT FONCIER ASSURANCE COURTAGE PROP 45.69 45.64 PROP 45.50 45.50CREDIT FONCIER BANQUE PROP 45.69 45.69 PROP 45.50 45.50DOM 9 - - - PROP 45.50 45.50DOM2 PROP 45.69 45.69 PROP 45.50 45.50FCC TEDDY PROP 45.69 45.69 - - -FINANCIERE DESVIEUX PROP 45.69 45.69 PROP 45.50 45.50FONCIER ASSURANCE PROP 45.69 45.69 PROP 45.50 45.50FONCIER BAIL PROP 45.69 45.69 PROP 45.50 45.50FONCIER PARTICIPATIONS EQUI 45.69 45.69 EQUI 45.50 45.50SICP EQUI 43.41 43.41 EQUI 43.23 43.23SIMCO (groupe) (3) (3) (3) EQUI 9.53 9.53SOCLIM PROP 45.69 45.69 - - -SOCRELOG - - - PROP 45.50 45.50
SOCFIM GROUP PROP 67.57 67.50 PROP 67.57 67.50SOCFIM PROP 67.57 67.50 PROP 67.57 67.50SEI LOGEMENT PROP 67.57 67.50 PROP 67.57 67.50SEI TERTIAIRE PROP 67.57 67.50 PROP 67.57 67.50SOCFIM PARTICIPATIONS PROP 67.57 67.50 PROP 67.57 67.50SOCFIM TRANSACTIONS PROP 67.57 67.50 PROP 67.57 67.50
SOCIETE EUROPEENNNE D'INVESTISSEMENT (SEI) PROP 67.57 67.50 PROP 67.57 67.50
EULIA CAUTION GROUP(ex SOGECCEF) PROP 67.57 67.56 PROP 67.57 67.57EULIA CAUTION PROP 67.57 67.56 PROP 67.57 67.57CEGI PROP 67.57 47.30 PROP 67.57 47.30FINANCIERE CEGI PROP 67.57 47.30 PROP 67.57 47.30SACCEF PROP 67.57 67.56 PROP 67.57 67.56SOCAMAB PROP 67.57 27.03 - - -
CDC IXIS GROUP PROP 79.36 79.36 PROP 79.36 79.36CDC IXIS PROP 79.36 79.36 PROP 79.36 79.36CDC ENTREPRISES PROP 79.36 76.04 PROP 79.36 76.09CDC ENTREPRISES 2 PROP 79.36 49.59 - - -CDC INNOVATION 96 PROP 79.36 76.75 PROP 79.36 76.78CDC IXIS ADMINISTRATION
DE FONDS (ex GSF) PROP 79.36 79.36 PROP 79.36 79.36CDC URQUIJO PROP 79.36 40.48 PROP 79.36 40.48ELECTROPAR FRANCE PROP 79.36 39.68 PROP 79.36 39.68EURO MONTAIGNE NV PROP 79.36 79.36 PROP 79.36 79.36FONDINVEST PROP 79.36 79.36 PROP 79.36 79.36IXIS AEW EUROPE (ex CDC IXIS IMMO) PROP 79.36 79.36 PROP 79.36 79.36MARTIGNAC FINANCE PROP 79.36 79.36 PROP 79.36 79.36PART'COM PROP 79.36 79.36 PROP 79.36 79.36SOGEPOSTE EQUI 38.89 38.89 EQUI 38.89 38.89SPID (*) (*) (*) PROP 79.36 79.36
• VEGA FINANCE GROUP PROP 79.36 67.46 PROP 79.36 67.46VEGA FINANCE PROP 79.36 67.46 PROP 79.36 67.45
AGENCE FRANCAISE DU PATRIMOINE EQUI 13.49 13.49 - - -C & M FINANCE EQUI 13.49 13.49 - - -FIDUCIARA VEGA PROP 79.36 67.46 - - -P & B FINANCE EQUI 22.94 22.94 - - -STRATUTS CONSULTANTS PROP 79.36 42.50 - - -VEGA GESTION DE FORTUNE PROP 79.36 67.46 - - -VEGA MULTIMANAGER PROP 79.36 67.43 - - -VEGA PARTENAIRES PROP 79.36 67.19 - - -VEGAGEST ITALIA PROP 25.63 25.63 - - -
• CDC IXIS GMBH GROUP PROP - - PROP 79.36 79.36CDC GMBH (*) (*) (*) PROP 79.36 79.36LABOUCHERE - - - PROP 40.47 40.47
•CDC IXIS PRIVATEEQUITY GROUP PROP 79.36 79.36 PROP 79.36 79.36CDC EQUITY CAPITAL PROP 79.36 79.36 PROP 79.36 79.36CDC EQUITY FINANCIAL SERVICES - - - PROP 79.36 79.17CDC INNOVATION PARTNERS PROP 79.36 79.36 PROP 79.36 79.36CDC IXIS PRIVATE EQUITY PROP 79.36 79.36 PROP 79.36 79.36FONDINVEST CAPITAL PROP 79.36 63.47 PROP 79.36 63.47PART COM MANAGEMENT PROP 79.36 79.17 PROP 79.36 79.17SERVICES INDUSTRIES GESTION PROP 79.36 79.36 PROP 79.36 79.36
• CDC IXIS CAPITALMARKETS GROUP PROP 79.36 79.36 PROP 79.36 79.36CDC IXIS CAPITAL MARKETS PROP 79.36 79.36 PROP 79.36 79.36CDC IXIS SECURITIES PROP 79.36 79.36 PROP 79.36 79.36CDC MARCHES INFORMATIQUE PROP 79.36 78.11 PROP 89.58 89.58CLEA2 PROP 79.36 79.36 - - -
• CDC IXIS NORTHAMERICA GROUP PROP 79.36 79.36 PROP 79.36 79.36CDC IXIS NORTH AMERICA PROP 79.36 79.36 PROP 79.36 79.36CIMCO PROP 79.27 79.27 PROP 79.27 79.27
CDC IXIS CAPITAL MARKET NORTH AMERICA GROUPCDC IXIS CAPITAL MARKETS NORTH AMERICA PROP 79.36 79.36 PROP 79.36 79.3657 TH STREET HOLDINGS II PROP 79.36 79.36 - - -BEDFORD OLIVER FUNDING PROP 79.36 79.36 - - -
BLOOM ASSET HOLDING FUND PLC PROP 79.36 79.36 - - -CCAV I PROP 79.36 79.36 - - -CDC COMMERCIAL PAPER PROP 79.36 79.36 PROP 79.36 79.36CDC DERIVATIVES INC PROP 79.36 79.36 PROP 79.36 79.36CDC FINANCIAL PRODUCTS PROP 79.36 79.36 PROP 79.36 79.36CDC FUNDING CORPORATION PROP 79.36 79.36 PROP 79.36 79.36CDC HOLDING TRUST PROP 79.36 79.36 PROP 79.36 79.36CDC MIRROR TRUST ST 1-3/11/00 PROP 79.36 79.36 - - -CDC MIRROR TRUST ST 1-9/11/00 PROP 79.36 79.36 - - -CDC MIRROR TRUST ST 1-FAC PROP 79.36 79.36 - - -CDC MORTGAGE CAPITAL PROP 79.36 79.36 PROP 79.36 79.36CDC MUNICIPAL PRODUCTS PROP 79.36 79.36 PROP 79.36 79.36
Companies METH % % METH % % METH % % METH % %
2002 control held 2001 control held 2002 control held 2001 control held(1) 2002 2002 (1) 2001 2001 (1) 2002 2002 (1) 2001 2001
4/conso/p84_91/US_BAG 30/07/2003 16:41 Page 88
![Page 45: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/45.jpg)
Caisse des Dépôts Group - Annual Report 2002 89
CDC PROPERTY TRUST PROP 79.36 79.36 - - -CDC SECURITIES PROP 79.36 79.36 PROP 79.36 79.36CDC SECURITIZATION PROP 79.36 79.36 PROP 79.36 79.36CDC WONDERLAND PROPERTY TRUST PROP 79.36 79.36 - - -NINE WEST HOLDINGS PROP 79.36 79.36 - - -
• ANATOL INVEST GROUP PROP 79.36 79.36 PROP 79.36 79.36ANATOL INVEST SA PROP 79.36 79.36 PROP 79.36 79.36ANATOL INVEST HOLDING BV PROP 79.36 79.36 PROP 79.36 79.36
PBW GROUP EQUI 39.68 39.68 PROP 79.36 79.36PBW REAL ESTATE FUND (ex NEWCO) EQUI 39.68 39.68 PROP 79.36 79.36ANATOL INVEST 2 BV (*) (*) (*) PROP 79.36 79.36ANATOL INVEST 3 BV (*) (*) (*) PROP 79.36 79.36ANATOL INVEST 4 BV (*) (*) (*) PROP 79.36 79.36ATRIUM TOWER EQUI 39.68 39.68 PROP 79.36 63.49BRISINVEST (*) (*) (*) PROP 79.36 79.36BRISTOL EQUI 39.68 39.68 PROP 79.36 79.36CENTRE INTERNATIONAL KARLIN BV (*) (*) (*) PROP 79.36 79.36IBC EQUI 39.68 39.68 PROP 79.36 79.36MATY AS KIRALY EQUI 39.68 39.68 PROP 79.36 79.36MYSLBEK EQUI 39.68 39.68 PROP 79.36 79.36WEBC EQUI 39.68 39.68 - - -
•CDC IXIS FINANCIALGUARANTY GROUP PROP 79.36 79.36 PROP 79.36 79.36
CDC IXIS FINANCIAL GUARANTY HOLDING PROP 79.36 79.36 PROP 79.36 79.36CDC IXIS FINANCIAL GUARANTY PROP 79.36 79.36 PROP 79.36 79.36
CDC IXIS FINANCIAL GUARANTY EUROPE PROP 79.36 79.36 PROP 79.36 79.36
CDC IXIS FINANCIAL GUARANTY NA PROP 79.36 79.36 - - -
CDC IXIS FINANCIAL GUARANTY SERVICES INC. PROP 79.36 79.36 PROP 79.36 79.36
• FONCIERE DESPIMONTS GROUP PROP 79.36 58.34 PROP 79.36 58.34SOCIETE FONCIERE DES PIMONTS PROP 79.36 58.34 PROP 79.36 58.34SA MESSINE PARTICIPATIONS PROP 79.36 58.34 PROP 79.36 58.34SARL DESCARTES PROP 79.36 58.34 PROP 79.36 58.34SAS DESCARTES PROP 59.79 52.78 PROP 59.79 52.78SCI CAMILLE DESMOULINS PROP 79.36 58.34 PROP 79.36 58.34SCI CHATILLON - - - PROP 79.36 58.34
SCI DU 1 ROND POINT DES CHAMPS ELYSEES PROP 79.36 58.34 PROP 79.36 58.34SCI DU 1 TERRASSE BELLINI PROP 26.45 19.45 PROP 26.45 19.45
SCI DU 114 AV. DES CHAMPS ELYSEES PROP 79.36 58.34 PROP 79.36 58.34SCI DU 2 RUE DU 4 SEPTEMBRE PROP 79.36 58.34 PROP 79.36 58.34SCI DU 2/4 BLD HAUSSMANN PROP 79.36 58.34 PROP 79.36 58.34SCI DU 22-24 AV. DE WAGRAM PROP 79.36 58.34 PROP 79.36 58.34SCI DU 26-28 AV. DE WAGRAM PROP 79.36 58.34 PROP 79.36 58.34SCI DU 3/5 AV. DE FRIEDLAND PROP 79.36 58.34 PROP 79.36 58.34SCI DU 31 RUE DE MOGADOR PROP 79.36 58.34 PROP 79.36 58.34SCI DU 69 BLD HAUSSMANN PROP 79.36 58.34 PROP 79.36 58.34SCI DU PONT NEUF PROP 79.36 58.34 PROP 79.36 58.34SCI MONTSOURIS 2001 PROP 39.68 29.17 PROP 39.68 29.17SCI MORIZET PROP 79.36 58.34 PROP 79.36 58.34
•MAGNANT GROUP PROP 79.36 79.36 PROP 79.36 79.36MAGNANT SA PROP 79.36 79.36 PROP 79.36 79.36BASSIN NORD SCI (2) (2) (2) PROP 30.06 30.06BATI GAUTIER (2) (2) (2) PROP 60.12 60.12CFI (CHEMIN DE FER INDUSTRIEL) (2) (2) (2) PROP 60.12 60.12EMGP (ENTREPOTS ET MAGASINS GENERAUX DE PARIS) (2) (2) (2) PROP 60.12 60.12
MANUTRA SA (2) (2) (2) PROP 33.00 33.00MANUTRA SECURITE (2) (2) (2) PROP 33.05 33.05PDM 1 (2) (2) (2) - - -PDM 2 (2) (2) (2) - - -PDM 3 (2) (2) (2) - - -SCI 68 VICTOR HUGO (2) (2) (2) PROP 60.12 60.12SCI LE PARC DU MILLENAIRE (2) (2) (2) PROP 60.12 60.12SERAEL (2) (2) (2) PROP 30.01 30.01SNC LE PARC DU MILLENAIRE (2) (2) (2) PROP 60.12 60.12
• LOGISTIS GROUP EQUI 26.45 26.45 EQUI 26.45 26.45LOGISTIS EQUI 26.45 26.45 EQUI 26.45 26.45SCI ARTOIPOLE ARRAS EQUI 26.45 26.45 EQUI 26.45 26.45SCI CLESUD EQUI 26.45 26.45 EQUI 26.45 26.45SCI EUROCENTRE TOULOUSE EQUI 26.45 26.45 EQUI 26.45 26.45SCI PARISUD EQUI 26.45 26.45 EQUI 26.45 26.45SCI PARISUD VI EQUI 26.45 26.45 EQUI 26.45 26.45SCI PLAINE DE L'AIN EQUI 26.45 26.45 EQUI 26.45 26.45SCI PORTE DE France EQUI 26.45 26.45 EQUI 26.45 26.45SCI SAINT LAURENT DE MURE EQUI 26.45 26.45 EQUI 26.45 26.45
SCI SAINT OUEN L'AUMONE (ex SCI VILLEBON) EQUI 26.45 26.45 EQUI 26.45 26,.45
• CDC IXIS ASSETMANAGEMENT GROUP PROP 72.09 72.09 PROP 72.13 72.13CDC IXIS ASSET MANAGEMENT PROP 72.09 72.09 PROP 72.13 72.13CDC AM ASIA PROP 72.09 72.09 PROP 72.13 72.13CDC AM JAPAN PROP 72.09 72.09 PROP 72.13 72.13CDC IXIS AM DEUTSCHLAND Kg - - - PROP 72.13 72.13CDC IXIS AM ITALIA PROP 72.09 72.09 PROP 72.13 72.13CDC IXIS AME ( ex TGF GESTION) PROP 72.09 72.09 PROP 72.13 72.07
CDC IXIS FONDSERVICES Gmbh (ex CDC BETEILIGUNGS) PROP 72.09 72.09 PROP 72.13 72.13
CDC IXIS PRIVATE CAPITAL MANAGEMENT PROP 72.09 72.08 PROP 72.13 72.13CDC TRESOR - - - PROP 72.13 71.80GFI - - - PROP 72.13 72.12
CDC IXIS AM NORTH AMERICACORPORATION GROUP PROP 72.09 72.09 PROP 72.13 72.13
CDC IXIS AM NORTH AMERICA CORPORATION PROP 72.09 72.09 PROP 72.13 72.13
CDC IXIS AM NA LP (ex NVEST COMPANIES LP) PROP 72.09 72.09 PROP 72.13 72.13
CDC IXIS AM US LLC (ex CDC IAM NA LLC) PROP 72.09 72.09 PROP 72.13 72.13AEW advisors Inc PROP 72.09 72.09 PROP 72.13 72.13AEW Capital Management, L.P. PROP 72.09 72.09 PROP 72.13 72.13AEW Capital Management, Inc. PROP 72.09 72.09 PROP 72.13 72.13AEW Curzon Ltd PROP 72.09 72.09 PROP 72.13 72.13AEW Equity Sharing LLC PROP 72.09 0.00 PROP 72.13 72.13AEW Hotel Investment Corp. - - - PROP 72.13 72.13AEW II Corporation PROP 72.09 72.09 PROP 72.13 72.13AEW Investment Group, Inc. PROP 72.09 72.09 PROP 72.13 72.13AEW Italia EQUI 57.67 57.67 EQUI 57.70 57.70
AEW Management and Advisors, L.P. PROP 72.09 72.09 PROP 72.13 72.13AEW Partners III, Inc PROP 72.09 72.09 PROP 72.13 72.13AEW Partners IV, Inc PROP 72.09 72.09 PROP 72.13 72.13AEW Real Estate Advisors, Inc. PROP 72.09 72.09 PROP 72.13 72.13AEW Real Estate Advisors, L.P. - - - PROP 72.13 72.13AEW Securities Limited Patnership PROP 72.09 72.09 PROP 72.13 72.13AEW TSF, Inc. PROP 72.09 72.09 PROP 72.13 72.13
Asashi Nvest Investment Advisory Co, LTD EQUI 35.32 35.32 EQUI 35.34 35.34Back Bay Advisors, Inc. PROP 72.09 72.09 PROP 72.13 72.13Back Bay Advisors, L.P. - - - PROP 72.13 72.13
Companies METH % % METH % % METH % % METH % %
2002 control held 2001 control held 2002 control held 2001 control held(1) 2002 2002 (1) 2001 2001 (1) 2002 2002 (1) 2001 2001
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
4/conso/p84_91/US_BAG 30/07/2003 16:41 Page 89
![Page 46: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/46.jpg)
90
Consolidated Financial Statements
Capital Growth Management, L.P. EQUI 36.04 36.04 EQUI 36.07 36.07Caspian Capital Management PROP 72.09 36.77 PROP 29.43 29.43
CDC IAM Advisors LP (ex Nvest Funds Management, L.P.) PROP 72.09 72.09 PROP 72.13 72.13
CDC IAM Associates, Inc (ex Nvest Associates, Inc.) PROP 72.09 72.09 PROP 72.13 72.13
CDC IAM Distribution Corporation (ex Nvest Distribution Corporation) PROP 72.09 72.09 PROP 72.13 72.13
CDC IAM Distributors, LP (ex Nvest Funds, L.P.) PROP 72.09 72.09 PROP 72.13 72.13
CDC IAM Holdings, LLC (ex Nvest Holdings, Inc.) PROP 72.09 72.09 PROP 72.13 72.13
CDC IAM Services, Inc (ex Nvest Services Company, Inc.) PROP 72.09 72.09 PROP 72.13 72.13
CDC IXIS Investment Services Japan, Inc. PROP 72.09 72.09 PROP 72.13 72.13CREA Western Investors I, Inc. PROP 72.09 72.09 PROP 72.13 72.13Curzon global Partners , LP EQUI 36.04 36.04 EQUI 36.07 36.07Federal Street Management, Inc PROP 72.09 72.09 PROP 72.13 72.13Fifth Copley Corp. PROP 72.09 72.09 PROP 72.13 72.13Fifth Singleton Corp. - - - PROP 72.13 72.13Mutualfunds.com, LLC EQUI 34.60 34.60 - - -Fourth Singleton Corp. - - - PROP 72.13 72.13
CDC IAM AUSTRALIA LTD (ex Loomis Sayles (Australia) Pty Limited) PROP 72.09 72.09 PROP 72.13 72.13
CDC IAM HOLDINGS LLC ( Australia) ( ex Loomis Sayles (Australia) Holdings LLC) PROP 72.09 72.09 PROP 72.13 72.13
Grand Cathay Securities Investment Trust EQUI 14.42 14.42 EQUI 14.43 14.43Harris Associates Securities, LP PROP 72.09 72.09 PROP 72.13 72.13Harris Associates, Inc. PROP 72.09 72.09 PROP 72.13 72.13Harris Associates, L.P. PROP 72.09 72.09 PROP 72.13 72.13Harris Partners, LLC PROP 72.09 72.09 PROP 72.13 72.13Jurika & Voyles, Inc. PROP 72.09 72.09 PROP 72.13 72.13
Jurika & Voyles, L.P. PROP 72.09 72.09 PROP 72.13 72.13Kobrick Funds LLC PROP 72.09 72.09 PROP 72.13 72.13Loomis Sayles & Company, Inc. PROP 72.09 72.09 PROP 72.13 72.13Loomis Sayles & Company, L.P. PROP 72.09 72.09 PROP 72.13 72.13Loomis Sayles (euro) Limited - - - PROP 72.13 72.13Loomis Sayles Distributors, Inc. PROP 72.09 72.09 PROP 72.13 72.13Loomis Sayles Distributors, L.P. PROP 72.09 72.09 PROP 72.13 72.13Loomis Sayles Equity Sharing, LLC PROP 72.09 - PROP 72.13 72.13MC Management Inc. PROP 72.09 72.09 PROP 72.13 72.13MC Management L.P. PROP 72.09 72.09 PROP 72.13 72.13NEICOMP LLC PROP 72.09 72.09 PROP 72.13 72.13Nvest International Partnership, LP EQUI <15 <15 EQUI <15 <15Reich & Tang Distributors, Inc. PROP 72.09 72.09 PROP 72.13 72.13
Reich & Tang AM LLC (ex Reich & Tang Asset Management, L.P.) PROP 72.09 72.09 PROP 72.13 72.13
Reich & Tang Services, Inc. PROP 72.09 72.09 PROP 72.13 72.13Seaport Senior Housing, LLC PROP 72.09 72.09 PROP 72.13 72.13Seventh Copley Corp. PROP 72.09 72.09 PROP 72.13 72.13Sixth Copley Corp. PROP 72.09 72.09 PROP 72.13 72.13Sixth Singleton Corp. - - - PROP 72.13 72.13Snyder Capital Management, Inc. PROP 72.09 72.09 PROP 72.13 72.13Snyder Capital Management, L.P. PROP 72.09 72.09 PROP 72.13 72.13Third Singleton Corp. - - - PROP 72.13 72.13
Vaughan Nelson Scarborough & Mc Cullough, Inc. PROP 72.09 72.09 PROP 72.13 72.13
Vaughan Nelson Scarborough & Mc Cullough, L.P. PROP 72.09 72.09 PROP 72.13 72.13VNSM Trust Company PROP 72.09 72.09 PROP 72.13 72.13
Westpeak Global Advisors (ex Westpeak Investment Advisors, L.P.) PROP 72.09 72.09 PROP 72.13 72.13
Westpeak Investment Advisors Australia Limited PROP 72.09 72.09 PROP 72.13 72.13
Westpeak Investment Advisors, Inc. PROP 72.09 72.09 PROP 72.13 72.13
Companies METH % % METH % % METH % % METH % %
2002 control held 2001 control held 2002 control held 2001 control held(1) 2002 2002 (1) 2001 2001 (1) 2002 2002 (1) 2001 2001
(1) Consolidation methods - FULL = Fully consolidated; PROP = Proportionally consolidated; EQUITY = Equity method.(2) EMGP Group was sold by CDC IXIS to C3D in December 2002. As a result, EMGP Group's 2002 income statement was consolidated by the CDC IXIS Group
and proportionally consolidated at 64.8% in the financial statements of Caisse des Dépôts et Consignations. EMGP Group's balance sheet as of December 31, 2002 wasfully integrated in the Caisse des Dépôts et Consignations financial statements.
(3) Disposed of in the second half of 2002. However, the income statement was consolidated for the first half of 2002.(*) Merger.
4/conso/p84_91/US_BAG 30/07/2003 16:41 Page 90
![Page 47: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/47.jpg)
To the Chief Executive Officer:
In accordance with the assignment entrusted to us, we have
audited the accompanying consolidated financial statements
of Caisse des Dépôts Group established in euros for the year ended
December 31, 2002.
These consolidated financial statements have been approved by
you. Our role is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with the professional stan-
dards applied in France. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements give a true and
fair view of the assets and liabilities, financial position and results of
the entity formed by the companies included in the consolidation
scope, in accordance with French accounting regulations and
generally accepted accounting principles
Paris, April 18, 2003
Caisse des Dépôts Group - Annual Report 2002 91
Auditors’ Report on the ConsolidatedFinancial Statements
The Auditors
PricewaterhouseCoopers Audit Mazars & Guérard
Gérard Hautefeuille Guillaume Potel – Denis Grison
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
4/conso/p84_91/US_BAG 30/07/2003 16:41 Page 91
![Page 48: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/48.jpg)
92
(EURO MILLIONS) Notes 12.31.2002 12.31.2001
ASSETSInterbank and similar transactions 32,298 30,909Cash, central banks and post office banks 28Public-sector securities and similar 3 16,189 13,067Advances and loans to financial institutions 1 16,109 17,814Customer transactions 2 4,767 2,879Overdrafts 645 966Other loans to customers 4,122 1,913Bonds, equities, other fixed and variable income securities 27,753 28,597Bonds and other fixed income securities 3 19,116 19,611Equities and other variable income securities 3 8,637 8,986Long-term equity holdings 10,218 9,880Long-term equity holdings 4 and 5 10,218 9,880Intangible fixed assets 6 55 47Tangible fixed assets 6 498 502Other assets 7 1,582 2,646Accruals and deferrals 7 2,010 5,114
TOTAL 79,181 80,574
LIABILITIESInterbank and similar transactions 23,472 22,079Cash, central banks and post office banks 12Advances and loans from financial institutions 8 23,460 22,079Customer transactions 9 32,073 34,652Customer deposits 22,827 25,322Other customer advances and loans 9,246 9,330Debt securities 10 1,307 1,374Interbank and money market instruments 1,307 1,374Other liabilities 11 10,776 7,367Accruals and deferrals 11 957 3,790Provisions for risks and charges 12 738 775Subordinated debt 2 2Fund for general banking risks (FGBR) 13 608 867Retained earnings (excluding FGBR) 13 9,248 9,668Reserves 8,629 8,267Revaluation adjustments 34 34Regulatory provisions and investment subsidies 20 36Other retained earnings 45 48Income for the year 520 1,283
Central Sector
Balance Sheet
5/secgén/p92_105/US_BAG 30/07/2003 16:50 Page 92
![Page 49: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/49.jpg)
Caisse des Dépôts Group - Annual Report 2002 93
(EURO MILLIONS) 12.31.2002 12.31.2001
Commitments givenFinancing commitmentsTo financial institutions 47 1,286To customers 3,072 4,977GuaranteesTo financial institutions 244 731To customers 6,390 9,332Securities transactionsSecurities to be delivered
1.279Commitments received
Financing commitmentsFrom financial institutions 11,755 34GuaranteesFrom financial institutions 6,054 8,768From customers 818 604Securities transactionsSecurities to be received 132 1,244
Other commitmentsOther commitments given 5 99Other commitments received 19 28
Off-balance sheet commitments relating to spot and forward currency transactions and lending and borrowing of foreign currency are described in Note 15.Off-balance sheet commitments relating to forward financial instruments are described in Notes 16 and 17.
Off-Balance Sheet Commitments
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
5/secgén/p92_105/US_BAG 30/07/2003 16:50 Page 93
![Page 50: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/50.jpg)
94
Central Sector
(EURO MILLIONS) Notes 12.31.2002 12.31.2001
Interest and similar revenues 2,249 4,215From treasury and interbank transactions 18 643 2,735From customer transactions 19 145 125From bonds and other fixed income securities 20 1,337 1,220Other interest and similar revenues 124 135Interest and similar expenses (1,487) (3,609)On treasury and interbank transactions 18 (790) (2 666)On customer transactions 19 (536) (647)On bonds and other fixed income securities 21 (159) (296)Other interest and similar expenses (2)Revenues from variable income securities 20 654 661Commissions (revenues) 22 28 21Commissions (expenses) 22 (38) (50)Gains or losses on trading security transactions 23 (99) (40)Gains or losses on available-for-sale security transactions and similar 24 (517) 396Other net operating banking revenues and expenses 25 (91) (125)
NET BANKING INCOME 699 1,469
Operating expenses (318) (232)Payroll expenses 26 (399) (347)Other administrative expenses (237) (211)Amounts rebilled 318 326Net amortization, depreciation and provision charges 27 (43) (44)
GROSS INCOME FROM OPERATIONS 338 1,193
Cost of risk 28 (31) (16)
NET INCOME FROM OPERATIONS 307 1,177
Gains or losses on fixed assets 29 55 447
NET RECURRING INCOME BEFORE INCOME TAX 362 1,624
Net non-recurring incomeIncome tax 30 (117) (298)Net increase in fund for genral banking risks and regulatory provisions 31 275 (43)
NET INCOME 520 1,283
Income Statement
5/secgén/p92_105/US_BAG 30/07/2003 16:50 Page 94
![Page 51: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/51.jpg)
Highlights for the year
Sharp deterioration in the financial marketsduring 20022002 was marked by a severe financial market downturn. Stock
market prices plummeted.
Given the sharp deterioration in French and European equities and
their volatility, provisions for impairment established for medium-
term portfolio securities (TAP) were strengthened by €928 million.
Meanwhile, allocations to the FGBR during the period 1998 to 2000
were written back in an amount of €259 million.
Principal policies for accounting and presentation of the financialstatements
The financial statements for the year ended December 31, 2002
have been prepared in accordance with generally accepted accoun-
ting principles applicable to banking and financial institutions in
France.
The financial statements are presented in accordance with CRC
Regulation 2000-03 on the preparation of individual company
accounts by undertakings governed by the French Banking
Regulation Committee (Comité de la Réglementation Bancaire et
Financière – CRBF).
The accounting principles and valuation methods used are identi-
cal to those used to prepare the financial statements for the year
ending December 31, 2001, with the exception of the following
points:
➔ Investment propertyFor buildings requiring that have suffered a permanent impairment
of value or are intended to be sold in the medium term, a provision
is established in an amount equal to the difference between the
book value and market value. For major buildings, the market value
is determined using external appraisals.
At subsequent period ends impairment tests are based on an update
of the most recent external appraisal.
➔ Provisions for risks and chargesCRC regulation 2000-06 dated December 7, 2000 relative to liabi-
lities was applied effective January 1, 2002. It defines new accoun-
ting and valuation rules for provisions for risks and charges.
In light of this regulation, a provision for risks and charges must be
established if, at the time the financial statements are finalized, a
commitment toward a third party exists whose term or amount is
not defined precisely. If this commitment is neither certain nor likely,
then a provision is not established but the commitment is descri-
bed in the notes to the financial statements.
In particular, banking transactions, financial instruments and insu-
rance contracts are not covered by the regulation. Regulations pre-
viously in effect remain applicable. Thus the provisions for risks and
charges related to the underlying transactions are established to
cover risks and charges clearly defined in terms of their nature and
likely to occur as a result of prior or ongoing events.
The application of the regulation did not have any material impact
on retained earnings at the beginning of the year.
➔ Urban renewal fund (FRU)Under an agreement signed by the two parties on June 29, 2000,
the French government entrusted Caisse des Dépôts et
Consignations with the management of a fund designed to strength-
en support measures for the urban renewal policy as well as the
new legislative initiatives governing solidarity and urban renewal.
The initiatives of the FRU are financed by a non-recurring dividend
of €457 million paid by the Caisse des Dépôts et Consignations.
Following written correspondence with the regulatory authorities,
the fund’s accounting was entrusted to Caisse des Dépôts et
Consignations, and the various transactions, accounted for in third-
party accounts, are reflected in the FRU accounts.
The accounting principles used for the financial statements are describedin detail below
1 – Income statement itemsInterest and commissions classified as such are recorded on an
accruals basis. Commissions not classified as interest are recor-
ded on a cash basis.
2 – Foreign currency denominated transactionsForeign currency denominated assets, liabilities and off-balance
sheet commitments have been translated at exchange rates on
December 31, 2002.
Currency gains and losses from ordinary foreign exchange tran-
sactions are recorded in the income statement.
Spot foreign exchange transactions are valued at the spot rate.
Forward currency transactions, other than hedging, are valued at
the rate for the remaining period. Forward currency transactions for
hedging purposes are valued by symmetry with the item hedged.
Premiums and discounts related to hedged forward currency tran-
sactions are taken as income and expenses over the period remai-
ning until the maturity of these transactions.
Caisse des Dépôts Group - Annual Report 2002 95
Notes of the Financial Statements
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
5/secgén/p92_105/US_BAG 30/07/2003 16:50 Page 95
![Page 52: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/52.jpg)
3 – Advances and loans to financial institutionsand customersThese items include loans, overdrafts, and securities purchased
under collateralized and uncollateralized fixed resale agreements.
➔ LoansLoans are recorded as assets in the balance sheet at redemption
value. Accrued interest is recognized as income over the life of the
loan.
Loans with non-collection risks are transferred to non-performing
loans, at the latest when unpaid due amounts are more than three
months old, or more than six months old for real-estate loans or
more than nine months old for local and regional government bodies.
Provisions are made against the interest and capital on these loans
after taking into account the type of collateral received.
➔ Securities purchased under collateralized and uncollateralized fixed resale agreements
These securities are recorded as assets in the balance sheet on the
line representing the receivable arising from the transaction. The
corresponding income is recognized on a time basis. Securities
received as collateral and subsequently sold are recorded as liabi-
lities and valued at market value.
4 – Securities and securities transactionsVariable income securities are classified under five accounting cate-
gories corresponding to the institution’s activities.
➔ Trading securitiesTrading securities include in particular treasury bills and negotiable
debt securities. They are expected to be held for periods not excee-
ding six months. They are highly liquid and are marked to market.
Valuation differences are recognized in the income statement.
➔ Available-for-sale securitiesAvailable-for-sale securities represent securities that are not to be
held until maturity or for trading purposes. They also include trading
securities reclassified after being held for a period of more than six
months. In this case, the reclassification is made at market value
on the date of the transfer.
Available-for-sale securities are treated according to the FIFO method
and are valued as follows:
– Bonds and equities: unrealized losses calculated based on their
year-end closing price are taken to expenses through a provision
for impairment;
– Treasury bills, negotiable debt securities, and interbank instru-
ments: provisions are made on the basis of the individual situa-
tion of the issuer and market indicators.
Any premiums and discounts on fixed-income securities are writ-
ten off over the residual life of the asset on a yield-to-maturity basis
for negotiable debt securities and on a straight-line basis for other
securities.
➔ Investment securitiesThis portfolio comprises fixed-income securities that are intended
to be held until maturity, and financed with dedicated long-term
resources or covered through hedging instruments.
Unrealized capital losses resulting from differences between book
and market values are not covered by provisions. However, if appli-
cable, counterparty risks are taken into account in determining the
value of these securities at year-end. The difference between the
acquisition price and the redemption value of the securities (pre-
mium or discount) is amortized using the yield-to-maturity method
for negotiable debt securities and the straight-line method for other
securities.
➔ Medium-term portfolio securities (TAP)Medium-term portfolio securities are investments made on a regu-
lar basis with the aim of realizing a capital gain in the medium term
but without the intention of investing on a long-term basis in the
development of the business or taking an active part in the opera-
tional management of the issuing undertaking. These securities are
recorded at cost.
A provision is taken in respect of any permanent impairment in the
value of the security due to a fundamental deterioration in the under-
taking’s position.
Caisse des Dépôts has gradually revised its provisioning proce-
dures for its long-term equity portfolio securities (TAP), and uses
methods for determining the value in use of these securities that
combine three criteria:
1) average stock market price over a predetermined period based
on the portfolio’s expected holding period;
2) stress forecast applied to this average, updated at year-end;
3) by exception, specific estimate of the lines for which the first two
criteria would not accurately reflect the value in use.
➔ Other long-term securities (ATDLT)No securities are held by the Central Sector that would be classi-
fied under this accounting category.
➔ Long-term equity holdingsLong-term equity holdings are recorded at acquisition cost.
They are valued on the basis of their fair value, with reference to
various criteria such as net assets, potential return, and capitaliza-
tion of earnings. Provisions are constituted to reflect any perma-
nent impairment.
➔ Lending and borrowing of securitiesSecurities are valued using the rules applicable to the portfolio
of origin.
Borrowed securities are recorded as an asset under trading
securities at their market value on the day they were borrowed,
and as a liability to recognize the debt towards the lender. They
are valued on the basis of their year-end market value.
Loans and borrowings guaranteed by cash and notes are trea-
ted in the same way as collateralized resale agreements.
Income from these transactions is recognized on an accruals
basis in the income statement.
5 – Tangible and intangible fixed assetsFixed assets are valued at cost. In the case of buildings, initial fix-
tures, fittings and installation expenditure may be added to the cost
of acquisition.
Depreciation is calculated using the straight-line method and accor-
96
Central Sector
5/secgén/p92_105/US_BAG 30/07/2003 16:50 Page 96
![Page 53: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/53.jpg)
ding to the type and quality of the building, over its estimated use-
ful life. Thus, buildings are depreciated over 20 to 50 years. Partial
renovation work on old buildings is depreciated over periods of bet-
ween 15 and 25 years.
Installations, improvements and fittings are generally written off over
10 years. As a general rule, software is written off over 3 years.
Forests are subject to provisions for impairment as required. In the
event of an irreversible loss, an exceptional depreciation charge is
taken for the amount of the loss.
6 – Advances and loans from financial institu-tions and customer depositsThese liabilities include deposits, loans and securities sold under col-
lateralized and uncollateralized fixed repurchase agreements.
➔ LoansLoans are recorded in the balance sheet at redemption value and
accrued interest is charged to the income statement over the life of
the loan.
➔ Securities sold under collateralized fixed repurchase agreements
The debt is recorded under liabilities. The securities are maintained in
their original portfolio and valued according to the rules applicable to
that portfolio. The corresponding interest is recognized as it is accrued.
7 – Debt securitiesDebt securities are reported according to the type of security: inter-
bank and money market instruments (certificates of deposit and
medium-term notes).
Accrued interest is recorded on the same balance sheet line as the
debt security and is charged to the income statement.
8 – Forward financial instrumentsIn application of the strategy defined for the development of its tra-
ding activities and the management of market risks, Caisse des
Dépôts operates on all organized and over-the-counter markets for
interest rate, currency and equities futures and options. In France
as well as abroad, these transactions are entered into:
– as part of specific or general hedging;
– in connection with specialized management of trading portfolios.
For all of these instruments, whatever the management policy pur-
sued, the face value of the futures and options contracts, the value
of the underlying assets, or the exercise price is recorded off-balance
sheet. The method of accounting for charges and revenues on these
instruments depends on the management policy pursued.
➔ Interest rate and currency swaps– Hedging transactions: charges and revenues resulting from hed-
ging instruments (taken singly or as a homogeneous group) are
recognized symmetrically with the revenues and charges resulting
from the transaction hedged. Charges and revenues on instruments
qualified as general hedges are recorded on an accruals basis.
– Specialized portfolio management transactions: contracts are
valued at year-end at their market value. In accordance with regu-
lations, the market value takes into account an adjustment for
counterparty risks and the discounted value of future manage-
ment costs. The total net valuation difference is recognized in the
income statement.
➔ Other interest rate and currency transactionsThese transactions relate primarily to futures and options.
– Hedging transactions: charges or revenues are recognized in the
income statement on a symmetrical basis with the revenues or
charges on the transaction hedged.
– Other transactions: these transactions are marked to market.
Unrealized gains or losses at year-end are recognized in the income
statement.
In order to give a fair view of the value of these instruments, those
that are not highly liquid are also valued by reference to their theo-
retical market value.
➔ Complex transactionsComplex transactions are synthetic combinations of instruments
of various types, characteristics and pricing methods.
Each component of the transaction is recorded on-or off-balance
sheet according to the nature of the underlying.
The result is considered globally and recorded through one entry
reflecting the economic nature of the transactions, as if they were
a single instrument. In the case of totally new products, when not
governed by explicit regulation, the accounting approach for reco-
gnition of any gains and losses is based on similar existing products.
The method of accounting for gains and losses depends on the
management policy pursued:
– Hedging transaction: for reasons of prudence, notably when mar-
ket liquidity is low, results are recorded on an accruals basis. A
provision is made when market value is negative.
– Trading portfolio or transaction for which the result can be consi-
dered as an arrangement fee: the result is recognized when the
transaction is initiated. A discount is applied to take into account
future management expenses and possible counterparty risks.
➔ Market valuesWhen the market price of the instruments or the valuation para-
meters are not officially listed, alternative valuation methods are
used, making reference to one or more of the following compo-
nents: price confirmation by brokers or outside counterparties, com-
parison with actual transactions and research by issuer or instru-
ment category.
When instruments are valued using models, these integrate the
parameters that affect the valuation of the instruments, in particu-
lar the liquidity level of the related markets. Applying a prudent
approach, the calculations are adjusted to take account of the weak-
nesses of some of these parameters, in particular their relevance
over a long period.
9 – Provisions for risks and chargesThis heading includes:
– provisions for specific identified risks and losses relating to cer-
tain sectors of activity;
– provisions for retirement commitments corresponding mainly to
benefits for end of service;
– provisions for charges arising from the implementation of a labor
Caisse des Dépôts Group - Annual Report 2002 97
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
5/secgén/p92_105/US_BAG 30/07/2003 16:50 Page 97
![Page 54: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/54.jpg)
agreement and the undertaking to provide assistance to all mem-
bers of staff leaving the institution’s employment;
– provisions to cover expected charges from known tax disputes;
– a provision for contingent taxation relative to the deferred assess-
ment of gains on public share exchange offers and mergers.
These provisions were analyzed in detail as part of the application
effective January 1, 2002 of CRC regulation 2000-06 dated
December 7, 2000 regarding liabilities.
Banking transactions and financial instruments in particular are not
covered by this regulation.
10 – Investment property risksCaisse des Dépôts owns a large portfolio of rental properties held
as long-term investments. For buildings depreciated over the long
term as well as those to be sold in the medium term, a provision is
established equal to the difference between the book value and the
market value. For major buildings, market values are determined
by independent appraisers.
11 – Pension and related commitmentsPension liabilities are generally covered by contributions taken as
expenses and paid to retirement or insurance funds, which then
handle pension payments, or by the government in the case of civil
servants.
Provisions are made in respect of the rights of employees to a pay-
ment on retirement that are not covered by insurance contracts, for
each category of employee based on collective bargaining agree-
ments. These provisions are calculated using an actuarial method
taking into account the age and length of service of the personnel,
the mortality rate and probable remaining service with the Group
until retirement and estimated future salary levels. This provision is
adjusted each year based on changes in the actuarial valuation of
the liabilities.
When these commitments are covered by an insurance policy,
the annual premiums paid are included in expenses for the period.
Commitments related to bonuses awarded for work medals or
Caisse des Dépôts medals are calculated using the same method
as is used to determine commitments for retirement indemnities.
12 – Income taxEach year the Central Sector pays to the French Treasury a volun-
tary contribution representative of income tax. The amount is cal-
culated as if the Central Sector was assessed for income tax in
accordance with the tax regime applicable to companies. It is
this amount that is accrued in the accounts under the heading
“income tax”.
A provision for tax is recorded in respect of transactions whose taxa-
tion is deferred. This is calculated applying the tax rate at which
these transactions are likely to be taxed. The deferred full and redu-
ced tax rates of 35.43% and 20.20%, respectively, were unchan-
ged from 2001 and the first half of 2002.
98
Central Sector
5/secgén/p92_105/US_BAG 30/07/2003 16:50 Page 98
![Page 55: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/55.jpg)
Caisse des Dépôts Group - Annual Report 2002 99
(EURO MILLIONS) 12.31.2002 12.31.2001
Ordinary accounts 8,478 7,120Current accounts of Savings Funds 149 198Overnight accounts and advances 47Accrued interest 35 51Amounts due from financial institutions 8,662 7,416Term loans and advances 3,221 5,579Securities purchased under collateralized fixed resale agreements 4,167 4,760Subordinated debt 37 1Non-performing loans 13 16Provisions (13) (15)Accrued interest 22 57Term loans to financial institutions 7,447 10,398
ADVANCES AND LOANS TO FINANCIAL INSTITUTIONS 16,109 17,814
(EURO MILLIONS) 12.31.2002 12.31.2001
Overdrafts 645 966Non-performing loans 8 8Provisions (8) (8)Overdrafts 645 966Loans to financial sector customers 13 65Other cash advances (1) 2,498 206Loans for infrastructure projects 396 434Loans for housing projects 211 251Other loans to customers 855 758Subordinated loans 71 105Non-performing loans 70 63Provisions (43) (20)Accrued interest 51 51Other loans to customers 4,122 1,913
CUSTOMER TRANSACTIONS 4,767 2,879
Total at sight 645 966Total at term 4,122 1,913
(1) Of which ACOSS: nil balance as of December 31, 2001, compared with €2,285 million as of December 31, 2002 (see Note 9).
Note 1 – Interbank and Similar Transactions: Advances and Loans to Financial Institutions
Note 2 – Customer Transactions (Assets)
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
5/secgén/p92_105/US_BAG 30/07/2003 16:50 Page 99
![Page 56: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/56.jpg)
100
Central Sector
A) BREAKDOWN BY NATURE AND TYPE OF PORTFOLIO
(EURO MILLIONS) 12.31.2002 12.31.2001
Trading Available-for- Investment Portfolio TOTAL Trading Available-for- Investment Portfolio TOTALsecurities sale securities securities securities securities sale securities securities securities
Public-sector securities and similar 4,720 1,037 6,313 12,070 4,669 902 6,793 12,364Securities on loan 4,109 10 4,119 519 184 703Public-sector securities and similar 8,829 1,047 6,313 16,189 5,188 1,086 6,793 13,067Bonds 55 764 6,958 7,777 28 840 6,055 6,923Other fixed income securities 9,302 1,501 10,803 14 10,352 1,193 11,559Securities on loan 536 536 1,129 1,129Bonds and other fixed income securities 55 10,066 8,995 19,116 42 11,192 8,377 19,611Equities 394 6,738 7,132 538 6,984 7,522Mutual funds 1,252 251 1,503 1,295 167 1,462Securities on loan 2 2 2 2Equities and other variable income securities 1,648 6,989 8,637 1,835 7,151 8,986
TOTAL BY TYPEOF PORTFOLIO 8,884 12,761 15,308 6,989 43,942 5,230 14,113 15,170 7,151 41,664
Investment securities amounting to €136 million were sold in 2002, compared with €70 million in 2001.No transfers were made between avaiable-for-sale and portfolio securities (TAP) during December 31, 2002.Part of the trading portfolio is held against a loan to the DFE (see Note 11).
B) Supplementary Information
(EURO MILLIONS) 12.31.2002 12.31.2001
Trading Available-for- Investment Portfolio TOTAL Trading Available-for- Investment Portfolio TOTALsecurities sale securities securities securities securities sale securities securities securities
Public-sector securities and similarGross value (1) 8,829 964 6,079 15,872 5,188 989 6,539 12,716Premiums/discounts 8 59 67 27 75 102Related receivables 75 175 250 73 179 252Provisions (3) (3)Net book value 8,829 1,047 6,313 16,189 5,188 1,086 6,793 13,067Market value of trading and available-for-sale securities 8,829 1,176 10,005 5,188 1,151 6,339Bonds and other fixed income securitiesGross value (1) 55 10,009 8,732 18,796 42 11,147 8,113 19,302Premiums/discounts 18 (3) 15 14 10 24Related receivables 50 266 316 53 254 307Provisions (11) (11) (22) (22)Net book value 55 10,066 8,995 19,116 42 11,192 8,377 19,611Market value of trading and available-for-sale securities 55 10,094 10,149 42 11,208 11,250Gross value 1,849 8,674 10,523 1,991 7,908 9,899Related receivables 2 2 2 2Provisions (2) (201) (1,687) (1,888) (156) (759) (915)Net book value 1,648 6,989 8,637 1,835 7,151 8,986Market value of available-for-sale securities and value in use for portfolio securities 1,687 9,920 11,607 1,996 12,575 14,571
(1) The gross value shown under “available-for-sale securities” and “investment securities” corresponds to redemption value.(2) The impairment provision for portfolio securities as of December 31, 2001 totaled €759 million.
An additional provision of €928 million was established as of December 31, 2002 based on the value in use of the portfolio lines.
Note 3 – Transactions on Trading, Available-for-Sale, Investment and Portfolio Activities
5/secgén/p92_105/US_BAG 30/07/2003 16:50 Page 100
![Page 57: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/57.jpg)
(EURO MILLIONS) 12.31.2001 Acquisitions/ Disposals/ Other 12.31.2002charges Reversals movements
Long-term equity holdingsGross value 9,295 100 (20) 227 9,602Provisions (278) (94) 6 178 (188)Net book value 9,017 6 (14) 405 9,414AdvancesGross value 1,022 266 (305) 983Provisions (159) (32) 12 (179)Net book value 863 234 (293) 804
LONG-TERM EQUITY HOLDINGS 9,880 240 (307) 405 10,218
(EURO MILLIONS) 12.31.2002
Shareholdings Advances Provisions TOTAL
Companies in which the Central Sector has a net investment of more than €40 millionAREVA 360 360BDPME 193 193CAISSE DES DEPOTS DEVELOPPEMENT - C3D 971 68 (19) 1,020CDC Holding Finances (formerly Sodeve) 2,867 2,867CDC IXIS 2,162 2,162CDC IXIS ITALIA HOLDING 44 44CDC KINEON 100 (6) 94CDC PME 404 404CNP ASSURANCES (*) 737 737DEXIA (*) 864 864SAS LE POINT DU JOUR 20 49 69SAS TOUR DESCARTES 38 58 96SCI BOUCICAUT 54 54SCI SILOGI 54 54SCIC HABITAT 18 106 (10) 114SICOVAM HOLDING 51 51SITQ LES TOURS 43 43STE FONCIERE ANATOLE FRANCE 159 254 413SEM and SAIEM 197 14 (35) 176
TOTAL PRINCIPAL EQUITY HOLDINGS AND ADVANCES 9,228 657 (70) 9,815
Other long-term equity holdings 374 (128) 246Other advances 326 (169) 157
TOTAL LONG-TERM EQUITY HOLDINGS AND ADVANCES 9,602 983 (367) 10,218
Of which listed investments (*) 1,601 1,601
Caisse des Dépôts Group - Annual Report 2002 101
Note 5 – Principal Long-term Equity Holdings
Note 4 – Long-term Equity Holdings - Movements
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
5/secgén/p92_105/US_BAG 30/07/2003 16:50 Page 101
![Page 58: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/58.jpg)
102
Central Sector
A) BREAKDOWN
(EURO MILLIONS) 12.31.2002 12.31.2001Gross Amortization Net Gross Amortization Netvalue and value value and value
depreciation depreciation
Operating fixed assets 539 (291) 248 511 (270) 241Investment properties 367 (117) 250 380 (119) 261Land and buildings 343 (117) 226 359 (119) 240Forests and undeveloped land 20 20 20 20Construction in progress 4 4 1 1
TANGIBLE FIXED ASSETS 906 (408) 498 891 (389) 502
Concessions, licences, patents 102 (79) 23 98 (77) 21Other intangible assets 32 32 26 26
INTANGIBLE ASSETS 134 (79) 55 124 (77) 47
TANGIBLE AND INTANGIBLEFIXED ASSETS 1,040 (487) 553 1,015 (466) 549
(EURO MILLIONS) 12.31.2001 Acquisitions/ Disposals/ 12.31.2002
Charges Reversals
Tangible operating fixed assets, gross 511 31 (3) 539Depreciation and provisions (270) (23) 2 (291)
NET OPERATING ASSETS 241 8 (1) 248
Investment properties, gross 380 5 (18) 367Depreciation and provisions (119) (8) 10 (117)
NET INVESTMENT PROPERTIES 261 (3) (8) 250
Intangible assets, gross 124 28 (18) 134Amortization and provisions (77) (20) 18 (79)
NET INTANGIBLE ASSETS 47 8 55
TANGIBLE AND INTANGIBLE FIXED ASSETS 549 13 (9) 553
B) MOVEMENTS
Note 6 – Tangible and Intangible Fixed Assets
5/secgén/p92_105/US_BAG 30/07/2003 16:50 Page 102
![Page 59: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/59.jpg)
Caisse des Dépôts Group - Annual Report 2002 103
(EURO MILLIONS) 12.31.2002 12.31.2001
Deferred charges 5 7Prepaid expenses 5 22Accrued income 195 114Currency adjustments and market value adjustments to financial instruments 27 38Collection accounts 896 3,789Other accruals 882 1,144Accruals and deferrals 2,010 5,114Premiums on purchases of options 26 13Miscellaneous receivables 448 708Settlement accounts on securities transactions 1,109 1,925Inventories and similar 36 37Impairment provisions (37) (37)Other assets 1,582 2,646
ACCRUALS, DEFERRALS AND OTHER ASSETS 3,592 7,760
(EURO MILLIONS) 12.31.2002 12.31.2001
Current accounts 4,003 1,858Current accounts of the Savings Funds 1,979 1,417Accrued interest 16 7Amounts due to financial institutions 5,998 3,282Term loans and advances 318 1.128Securities sold under collateralized fixed repurchase agreements 17,097 17,423Accrued interest 47 246Term loans from financial institutions 17,462 18,797
ADVANCES AND LOANS FROM FINANCIAL INSTITUTIONS 23,460 22,079
(EURO MILLIONS) 12.31.2002 12.31.2001
Current accounts (1) 22,826 25,322Accrued interest 1Customer deposits 22,827 25,322Loans from financial sector customers 133 624Escrow accounts ("consignations") 2,490 2,364Term deposits 5,947 5,929Securities sold under collateralized fixed repurchase agreements 254Other 5 8Accrued interest 417 405Other customer advances and loans 9,246 9,330
CUSTOMER TRANSACTIONS 32,073 34,652
(1) Of which, ACOSS: nil balance as of December 31, 2002, compared with €3.7 billion the previous year (see Note 2).
Note 7 – Accruals, Deferrals and other Assets
Note 8 – Interbank and Similar Transactions – Advances and Loans from Financial Institutions
Note 9 – Customer Transactions (Liabilities)C
aiss
e d
es D
épô
ts G
roup
F
ina
nc
ial
Sta
tem
en
tsC
om
pet
itive
bus
ines
sP
ublic
-int
eres
t m
issi
ons
Co
rpo
rate
info
rmat
ion
5/secgén/p92_105/US_BAG 30/07/2003 16:50 Page 103
![Page 60: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/60.jpg)
104
Central Sector
(EURO MILLIONS) 12.31.2002 12.31.2001
Certificates of deposit 6Negotiable medium-term notes 1,302 1,357Related amounts payable 5 11Interbank and money-market instruments 1,307 1,374
DEBT SECURITIES 1,307 1,374
(EURO MILLIONS) 12.31.2002 12.31.2001
Deferred income 1 2Accrued charges 158 282Currency and forward financial instruments adjustment accounts 39 103Collection accounts 302 2,560Other deferrals 457 843Accruals and deferrals 957 3,790Premiums on sale of options 33 21Securities on loan (1) 8,884 5,128Miscellaneous payables 593 1,131Settlement accounts on securities transactions 1,266 1,087Miscellaneous liabilities 10,776 7,367
ACCRUALS, DEFERRALS AND OTHER LIABILITIES 11,733 11,157
(1) Of which, loan from DFE (see Note 3a).
(EURO MILLIONS) 12.31.2001 Charges Reversals Other 12.31.2002changes
Public-interest programs 1 (1)Provisions for retirement and other employment related charges (1) 55 18 (55) 18Provisions for real estate risks 5 5Provisions for counterparty risks 96 23 (25) 6 100Provisions for deferred taxes 544 (14) 530Other provisions for risks and charges 74 27 (10) (6) 85
PROVISIONS FOR RISKS AND CHARGES 775 68 (105) 738
(1) These provisions were adjusted in light of contractual commitments.
Note 10 – Debt Securities
Note 11 – Accruals, Deferrals and other Liabilities
Note 12 – Provisions for Risks and Charges
5/secgén/p92_105/US_BAG 30/07/2003 16:50 Page 104
![Page 61: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/61.jpg)
Caisse des Dépôts Group - Annual Report 2002 105
(EURO MILLIONS) Fund for General Revaluation Regulatory Other Income for RetainedGeneral Reserve Reserve provisions and retained the year earningsBanking investment earnings
Risks subsidies
Retained earnings as of December 31, 2000 822 7,828 34 38 55 1,074 9,851Appropriation of 2000 earnings 1,081 (7) (1,074)Distribution in 2001 of 2000 earnings (642) (642)Other changes 45 (2) 432001 earnings 1,283 1,283Retained earnings as of December 31, 2001 867 8,267 34 36 48 1,283 10,535Appropriation of 2001 earnings 362 921 (1,283)Distribution in 2002 of 2001 earnings (909) (909)Other changes (259) (16) (15) (290)2002 earnings 520 520
RETAINED EARNINGS AS OFDECEMBER 31, 2002 608 8 629 34 20 45 520 9,856
– The distribution of 2000 earnings in 2001 amounted to 33.33% of the group share of consolidated net income for 2001, or €642 million paid to the State.– The 2001 earnings paid to the State in 2002 comprised:• €452 million (33.33% of the group share of 2001 consolidated net income) • an exceptional dividend of €457 million, which corresponded to the absence of capital gains generated by Caisse des Dépôts et Consignations on the sale of its CDC IXIS shares in the course of the creation of EULIA.Caisse des Dépôts et Consignations decided to pay the State the exceptional dividend that would have resulted from the capital gains on those shares.– Another change in 2002 that reduced "Other retained earnings" corresponded to the payment of a dividend of €15 million to the Cyberbase fund.In recent years, Caisse des Dépôts et Consignations maintained and strengthened its provisioning policy to the FGBR in a context of a strong run-up in equitymarket prices. Given that the market downturn in 2002 decisively rolled back the gains recorded earlier, Caisse des Dépôts et Consignations decided to write back provisionsestablished between 1998 and 2000, a total of €259 million.
Note 13 – Changes in Retained Earnings
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
5/secgén/p92_105/US_BAG 30/07/2003 16:50 Page 105
![Page 62: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/62.jpg)
106
Central Sector
(EURO MILLIONS) Euro U.S. Pound Other Total atDollar Sterling 12.31.2002
ASSETSAdvances and loans to financial institutions 16,060 4 1 44 16,109Advances and loans to customers 4,755 12 4,767Trading securities
Public-sector securities and similar 8,829 8,829Bonds and other fixed income securities 55 55
Available-for-sale securitiesPublic-sector securities and similar 1,047 1,047Bonds and other fixed income securities 9,750 316 10,066
Investment securitiesPublic-sector securities and similar 6,313 6,313Bonds and other fixed income securities 8,984 11 8,995
LIABILITIESAdvances and loans from financial institutions 23,315 145 23,460Customer advances and loans 32,007 10 2 54 32,073Debt securities
Other fixed income securities 1,307 1,307
B) BALANCE SHEET ITEMS BY TERM TO MATURITY
(EURO MILLIONS) 3 months 3 months 1 to 5 years More than Totalor less to 1 year 5 years 12.31.2002
ASSETSAdvances and loans to financial institutions 12,884 1,662 1,510 53 16,109Advances and loans to customers 994 2,493 655 625 4,767Available-for-sale securities
Public-sector securities and similar 9 399 240 399 1,047Bonds and other fixed income securities 8,831 533 246 456 10,066
Investment securitiesPublic-sector securities and similar 733 4,735 845 6,313Bonds and other fixed income securities 148 667 2,899 5,281 8,995
LIABILITIESAdvances and loans from financial institutions 21,893 1,380 187 23,460Customer advances and loans 28,781 2,044 122 1,126 32,073Debt securities
Other fixed income securities 1,090 217 1,307
A) BALANCE SHEET ITEMS BY CURRENCY
Note 14
6/secgén/p106_115/US_BAG 30/07/2003 16:43 Page 106
![Page 63: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/63.jpg)
Caisse des Dépôts Group - Annual Report 2002 107
(EURO MILLIONS) 12.31.2002 12.31.2001
Spot transactionsEuros purchased to be received 2Foreign currencies purchased to be received 10Euros sold to be delivered 1Foreign currencies sold to be delivered 9Forward currency transactionsEuros to be received against foreign currencies to be delivered
Euros to be received 831 2,096Foreign currencies to be delivered 1,899 2,628
Foreign currencies to be received against euros to be deliveredForeign currencies to be received 1,100 2,680Euros to be delivered 431 2,196
Foreign currencies to be received against foreign currencies to be delivered 417 1,032Foreign currencies to be delivered against foreign currencies to be received 854 1,241Unaccrued premiums/discountsTo be received 5 47To be paid 2 44
(EURO MILLIONS) 12.31.2002TRANSACTION CASH/HEDGE
Purchase/Borrowing Sale/Loan Purchase/Borrowing Sale/Loan
FUTURES TRANSACTIONS
Organized marketsInterest rate contracts 375 19Over-the-counter marketsInterest rate swaps (1) 60,367 14,466
OPTIONS
Organized marketsInterest rate options 76Other options 28 28Over-the-counter marketsCaps, floors 320Swaptions 3,900 4,134Other options 285 19
(1) For the most part, these transactions mirror transactions contributed to CDC IXIS.
Note 15 – Off-Balance Sheet Commitments in respect of Spot or Forward Currency Transactions and Lending and Borrowing of Foreign Currency
Note 16 – Forward Financial Instruments
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
6/secgén/p106_115/US_BAG 30/07/2003 16:43 Page 107
![Page 64: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/64.jpg)
108
Central Sector
Note 17
A) FORWARD FINANCIAL INSTRUMENTS BY CURRRENCY
(EURO MILLIONS) Euro U.S. Pound Other Total Dollar Sterling
FUTURES TRANSACTIONSInterest rate contracts 391 3 394Interest rate swaps 56,615 52 538 17,628 74,833
OPTIONSInterest rate options 76 76Caps, floors 320 320Swaptions 3,288 4,746 8,034Other options 360 360
B) FORWARD FINANCIAL INSTRUMENTS BY TERM TO MATURITY
(EURO MILLIONS) 3 months 3 months 1 to 5 years More than Total or less to 1 year 5 years
FUTURES TRANSACTIONSInterest rate contracts 394 394Interest rate swaps 74,833 74,833
OPTIONSInterest rate options 4 23 45 4 76Caps, floors 320 320Swaptions 402 2,410 4,820 402 8,034Other options 17 103 223 17 360
(EURO MILLIONS) 2002 2001
Interest on central bank and post office bank 19 30Interest on current account advances 233 1,808Interest on other loans and securities purchased under uncollateralized fixed resale agreements 165 594Interest on securities purchased under collateralized fixed resale agreements 145 236Premium/discount income 56 34Other interest and similar income 25 33
INTEREST AND SIMILAR REVENUES FROM TREASURYAND INTERBANK TRANSACTIONS 643 2,735
Interest on current accounts (132) (1,569)Interest on loans and securities sold under uncollateralized fixed repurchase agreements (51) (277)Interest on securities sold under collateralized fixed repurchase agreements (545) (788)Premium/discount expenses (48) (25)Other interest and similar expenses (14) (7)
INTEREST AND SIMILAR EXPENSES ON TREASURY ANDINTERBANK TRANSACTIONS (790) (2,666)
Note 18 – Interest and Similar Revenues and Expenses on Treasury and Interbank Transactions
6/secgén/p106_115/US_BAG 30/07/2003 16:43 Page 108
![Page 65: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/65.jpg)
Caisse des Dépôts Group - Annual Report 2002 109
(EURO MILLIONS) 2002 2001
Interest on overdrafts 26 4Interest on loans to customers 79 89Interest on cash advances 6 9Interest on loans for infrastucture projects 23 27Interest on loans for housing projects 13 17Interest on other loans to customers 37 36Interest on other loans and on securities purchased under uncollateralized fixed resale agreements 5 5Other interest and similar income 35 27
INTEREST AND SIMILAR REVENUES FROM CUSTOMER TRANSACTIONS 145 125
Interest on current accounts (312) (373)Interest on escrow accounts (“consignations”) (39) (40)Interest on term deposits, borrowings and securities sold under uncollateralized fixed repurchase agreements (183) (234)Interest on securities sold under collateralized fixed repurchase agreements (1)Other interest and similar expenses (1)
INTEREST AND SIMILAR EXPENSES ON CUSTOMER TRANSACTIONS (536) (647)
(EURO MILLIONS) 2002 2001
Interest and similar revenues from available-for-sale securities 399 327Public-sector securities 62 51Bonds 43 36Other fixed income securities 294 240Interest and similar revenues from investment securities 938 893Public-sector securities 437 441Bonds 421 389Other fixed income securities 80 63
INTEREST AND SIMILAR REVENUES FROM BONDSAND OTHER FIXED-INCOME SECURITIES 1,337 1,220
Revenues from available-for-sale securities 61 81Equities 9 12Mutual funds 52 69Revenues from portfolio securities 209 220Revenues from long-term equity holdings 384 360
REVENUES FROM VARIABLE INCOME SECURITIES 654 661
Note 20 – Revenues from Securities Portfolio
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
Note 19 – Interest and Similar Revenues and Expenses on Customer Transactions
6/secgén/p106_115/US_BAG 30/07/2003 16:43 Page 109
![Page 66: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/66.jpg)
110
Central Sector
(EURO MILLIONS) 2002 2001Revenues Expenses Revenues Expenses
Customer transactions 3 2Securities trading (12) (14)Financial instruments trading (3)Commissions on financial services and other 25 (26) 19 (33)
COMMISSIONS 28 (38) 21 (50)(10) (29)
(EURO MILLIONS) 2002 2001
Interest on negotiable certificates of deposit (53) (88)Interest on negotiable medium-term notes (1) (70)Interest and expenses on bonds (2) (3)Other interest expenses (103) (135)
INTEREST AND SIMILAR EXPENSES ON BONDSAND OTHER FIXED INCOME SECURITIES (159) (296)
(EURO MILLIONS) 2002 2001
Net gains (losses) on trading securities (8) (2)Net gains (losses) on foreign currency instruments (33) (16)Net gains (losses) on financial instruments (58) (22)
GAINS AND LOSSES ON TRADING SECURITY TRANSACTIONS (99) (40)
Note 21 – Interest and Similar Expenses on Bonds and other Fixed Income Securities
Note 22 – Commission Revenues and Expenses
Note 23 – Gains and Losses on Trading Security Transactions
6/secgén/p106_115/US_BAG 30/07/2003 16:43 Page 110
![Page 67: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/67.jpg)
Caisse des Dépôts Group - Annual Report 2002 111
(EURO MILLIONS) 2002 2001
Net gains (losses) on the sale of available-for-sale securities (156) 66Other income and expenses on available-for-sale securities (9) (5)Provisions taken/reversed on available-for-sale securities (31) (115)
GAINS AND LOSSES ON AVAILABLE-FOR-SALE SECURITY TRANSACTIONS (196) (54)
Net gains (losses) on the sale of portfolio securities 607 566Provisions taken/reversed on portfolio securities (928) (116)
GAINS AND LOSSES ON PORTFOLIO SECURITY TRANSACTIONS (321) 450
GAINS AND LOSSES ON AVAILABLE-FOR-SALEAND PORTFOLIO SECURITIES (517) 396
(EURO MILLIONS) 2002 2001Revenues Expenses Revenues Expenses
Gains and losses on disposal of investment properties 2 (2) 15 (1)Depreciation and provision charges/reversals on investment properties 5 (8) 13 (9)Income and expenses on investment properties 60 (40) 59 (42)Total revenues and expenses on investment properties 67 (50) 87 (52)Public-interest programs (16) (65)Provisions taken/reversed on public-interest programs 1 13 (1)Total revenues and expenses on public-interest programs 1 (16) 13 (66)Expenses rebilled, revenues recredited and expenses transferred 2 4Agent commissions (French Treasury) (87) (91)Other miscellaneous operating income and expenses 20 (29) 31 (61)Provision charges and reversals on other operating income and expenses 1 11 (1)Other operating income and expenses 23 (116) 46 (153)
OTHER OPERATING BANKING INCOME AND EXPENSES 91 (182) 146 (271)
NET OPERATING BANKING INCOME AND EXPENSES (91) (125)
Note 24 – Gains and Losses on Available-for-sale and Portfolio Security Transactions
Note 25 – Other Net Operating Banking Revenues and Expenses
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
6/secgén/p106_115/US_BAG 30/07/2003 16:43 Page 111
![Page 68: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/68.jpg)
112
Central Sector
A) PAYROLL EXPENSES
(EURO MILLIONS) 2002 2001
Salaries (272) (237)Retirement expenses and related provision charges and reversals 37 7Other social charges (103) (96)Incentive programs and profit sharing (8) (6)Payroll taxes (32) (33)Provision charges and reversals (1) (21) 18
PAYROLL EXPENSES (399) (347)
(1) Includes a net charge of €23 million relating to a labor agreement as of December 31, 2002, compared with a reversal of €21 million the previous year.
(EURO MILLIONS) 2002 2001
Depreciation of fixed operating assets (43) (45)RecapturesNet depreciation of fixed operating assets (43) (45)Provisions against operating fixed assetsReversals of provisions against operating fixed assets 1Net provisions against operating fixed assets 1
NET AMORTIZATION, DEPRECIATION AND PROVISIONS ON FIXED ASSETS (43) (44)
B) STAFF EMPLOYED
2002 2001
Average number of management staff 1,646 1,539Average number of non-management staff 4,570 4,639
TOTAL AVERAGE NUMBER OF STAFF 6,216 6,178
Number of management staff at year-end 1,687 1,594Number of non-management staff at year-end 4,582 4,608
TOTAL NUMBER OF STAFF AT YEAR-END 6,269 6,202
Note 26
Note 27 – Net Amortization, Depreciation and Provisions on Fixed Assets
6/secgén/p106_115/US_BAG 30/07/2003 16:43 Page 112
![Page 69: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/69.jpg)
Caisse des Dépôts Group - Annual Report 2002 113
(EURO MILLIONS) 2002 2001
Provision charges in respect of:Impairment of receivables (37) (45)Risks on signature commitments (7) (18)Counterparty risks (19) (50)Other risk provisions (1)Provision charges (64) (113)Reversals of provisions for: Impairment of receivables 15 33Risks on signature commitments 10 25Counterparty risks 19 103Reversals of provisions 44 161Losses on irrecoverable receivables and recoveries (11) (64)Losses and recoveries (11) (64)
COST OF RISK (NET APPROPRIATION TO PROVISIONS) (31) (16)
(EURO MILLIONS) 2002 2001
Gains and losses on disposals of tangible and intangible fixed assets (1) (2)
GAINS AND LOSSES ON DISPOSALS OF TANGIBLEAND INTANGIBLE FIXED ASSETS (1) (2)
Net gains (losses) on transactions concerning long-term equity holdings and advances 62 452Gains and losses on disposals of long-term equity holdings and advances (10) 291Provision charges and reversals on long-term equity holdings and advances 72 161Gains and losses on transactions concerning investment and other long-term securities (6) (3)Gains and losses on transactions concerning investment and other long-term securities (6) (3)
GAINS AND LOSSES ON TRANSACTIONS CONCERNING LONG-TERM EQUITYHOLDINGS AND OTHER LONG-TERM SECURITIES 56 449
GAINS AND LOSSES ON FIXED ASSETS 55 447
(EURO MILLIONS) 2002 2001
Representative corporate income tax contribution (131) (301)Deferred taxes 14 3
INCOME TAX (117) (298)
Note 28 – Cost of Risk (Net Appropriation to Provisions)
Note 29 – Gains and Losses on Fixed Assets
Note 30 – Income tax
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
6/secgén/p106_115/US_BAG 30/07/2003 16:43 Page 113
![Page 70: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/70.jpg)
114
Central Sector
(EURO MILLIONS) 2002 2001
Net decrease (increase) in FGBR 259 (45)Net decrease in regulatory provisions 16 2
NET DECREASE (INCREASE) IN FGBR AND REGULATORY PROVISIONS 275 (43)
a) Guarantee given by Caisse des Dépôts et Consignations to CDC IXIS
Since December 1, 2000, some of the transactions carried out by
CDC IXIS have been covered by a joint guarantee from Caisse des
Dépôts et Consignations. The transactions concerned are, first of
all, transactions on financial instruments, including the issuing of
such instruments, and, second, interbank and treasury transac-
tions, as well as various types of guarantee commitments (endor-
sements, sureties and other guarantees). Under the terms of the
agreement, CDC IXIS can in turn give guarantees to certain of its
subsidiaries under certain conditions.
The compensation due from CDC IXIS in respect of the guaran-
tee given by Caisse des Dépôts depends on the ratio, on a conso-
lidated basis, between capital at risk and Tier 1 capital as defi-
ned for capital adequacy purposes. It is at least equal to the
amount of the total financial instruments outstanding issued by
CDC IXIS multiplied by the difference, at the time of issue, bet-
ween the compensation paid by CDC IXIS in respect of these ins-
truments and that of comparable financial instruments issued at
the same time by the most highly rated private-sector European
financial institutions.
For the year ended December 31, 2002, the compensation paid by
CDC IXIS amounted to €10.9 million.
b) Sanpaolo IMI (SP IMI) commitmentCaisse des Dépôts Group and Sanpaolo IMI have signed an agree-
ment that expresses their intention to create a lasting strategic part-
nership. Along with this agreement, the two groups acquired cross-
holdings. In that context, Caisse des Dépôts granted Sanpaolo IMI
two options to purchase CDC IXIS shares, the first in the event of
a change in CDC IXIS’s controlling ownership, the second, which
includes a liquidity commitment, in the event that the shares are not
listed on an organized European market. In addition, Caisse des
Dépôts has an option to buy CDC IXIS shares owned by Sanpaolo
IMI, which can be exercised in the event of a change in the control-
ling interest in Sanpaolo IMI. These commitments expire in 2004.
The sale price of the shares in the event the options are exercised
shall be determined by expert financial appraisals.
c) Guarantee granted in respect of CDC HoldingFinance (CDC HF)
Caisse des Dépôts has given an undertaking to ensure that CDC
Holding Finance will be able to fulfill its commitments as part of
the reciprocal guarantees signed by CDC HF and CNCE at the
time of the Alliance transaction, in the event it should be called
upon to do so.
Note 31 – Change in Fund for General Banking Risks (FGBR) and Regulatory Provisions
Note 32
6/secgén/p106_115/US_BAG 30/07/2003 16:43 Page 114
![Page 71: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/71.jpg)
To the Chief Executive Officer,
In accordance with the assignment entrusted to us, we have audi-
ted the accompanying financial statements of the Central Sector of
Caisse des Dépôts et Consignations established in euros for the
year ended December 31, 2002.
These financial statements have been approved by you. Our role is
to express an opinion on these financial statements based on our
audit.
We conducted our audit in accordance with the professional stan-
dards applied in France. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and signi-
ficant estimates made by management, as well as evaluating the
overall presentation of the financial statements. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements give a true and fair view of
the results of the Central Sector for the year ended December 31,
2002 as well as of its assets, liabilities and financial position at that
date, in accordance with French accounting regulations and gene-
rally accepted accounting principles.
Paris, April 18, 2003
Auditor’s Report on the Central Sector
The Auditors
PricewaterhouseCoopers Audit Mazars & Guérard
Gérard Hautefeuille Guillaume Potel – Denis Grison
Caisse des Dépôts Group - Annual Report 2002 115
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
6/secgén/p106_115/US_BAG 30/07/2003 16:43 Page 115
![Page 72: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/72.jpg)
Savings Funds
The activities of Caisse des Dépôts et Consignations comprise two
main missions:
– the direct business of the Central Sector – the financial and admi-
nistrative entity of Caisse des Dépôts and of the subsidiaries and
long-term equity interests attached to it, notably the CDC IXIS, C3D
and CNP Assurances groups;
– the management of the funds entrusted to Caisse des Dépôts
et Consignations: the accounting structure of Caisse des Dépôts
reflects the nature of the relationship existing between the Public
Institution and these funds.
A series of legal, regulatory and contractual documents defines the
nature of the services provided by Caisse des Dépôts and their
remuneration.
The accounting systems used make it possible to identify each
fund’s resources, their uses and the earnings generated. Therefore,
a balance sheet and an income statement are drawn up for each
fund.
This section presents the financial statements relating to the
Savings Funds centralized by Caisse des Dépôts.
These include in particular deposits taken on the Livret A and LEP
passbooks and Codevi accounts of Caisses d’Epargne, the Livret
Bleu passbooks of Crédit Mutuel, the LEP passbooks and Codevi
accounts of banks and the deposits collected by La Poste (Livret
A, Livret B, PEP, LEP, Codevi, CNE home-purchase savings plans
and Livret Jeunes passbooks).
116
Introductory Note
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 116
![Page 73: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/73.jpg)
Caisse des Dépôts Group - Annual Report 2002 117
(EURO MILLIONS) Notes 12.31.2002 12.31.2001
ASSETSPublic-sector securities and similar 3 66,469.1 71,960.7Interbank and treasury transactions 1 2,339.6 2,078.2Ordinary accounts 1,667.0 1,925.4Other amounts due by financial institutions 672.6 152.8Financing transactions 2 111,530.4 110,489.7Infrastructure loans 5,988.9 7,416.4Housing loans 85,239.0 84,741.1Other loans 20,302.5 18,332.2Bonds and other fixed income securities 3 40,801.1 29,397.8Equities and other variable income securities 3 5,220.1 5,725.1Long-term equity holdings and other long-term investments 4 1.9 1.9Tangible fixed assets 5 9.3 15.3Accruals, deferrals and other assets 6 325.1 196.7
TOTAL ASSETS/LIABILITIES 226,696.6 219,865.4
LIABILITIESInterbank and treasury transactions 7 5,149.5 5.966,8Term loans 5,149.5 5,966.8Other amounts due to financial institutions - -Savings deposits centralized with Caisse des Dépôts et Consignations 8 209,246.7 199.101,3Deposits 203,275.1 193,429.5
Livrets A and B 110,048.5 105,666.0Livret d'Epargne Populaire 42,612.4 40,526.7Livret Jeunes 957.5 890.8Codevi 7,643.8 6,965.2Epargne-Logement 26,402.0 24,468.9PEP-CNE 1,053.6 1,126.9Livret Bleu 14,557.3 13,785.0
Accrued interest on deposits 5,945.8 5,650.2Withholding on interest payable to depositors 25.8 21.6Accruals, deferrals and other liabilities 9 519.3 491.5Provisions for risks and charges 10 1,425.9 1,359.0Subsidies 11 1,762.9 1,743.5Fund for General Banking Risks (FGBR) 12 2,600.6 2,845.8Retained earnings - excluding FGBR 13 5,991.7 8,357.5Ordinary retained earnings 5,464.9 6,147.5Unappropriated earnings 526.8 2,210.0
Balance Sheet of Savings Funds centralized by Caisse des Dépôts et Consignations
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 117
![Page 74: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/74.jpg)
118
Savings Funds
(EURO MILLIONS) Livret A Livrets A & BCEP FRGCE CNE FRGCNE LEP
ASSETSPublic-sector securities and similar 16,331.9 - 15,478.7 105.0 23,984.0
Interbank and treasury transactions 1,222.7 532.5 925.7 556.0 543.5Ordinary accounts 591.6 12.3 925.7 (0.1) 191.9Other amounts due by financial institutions 631.1 520.2 - 556.1 351.6
Financing transactions 51,980.9 4.3 34,165.8 188.3 5,709.7Infrastructure loans 3,629.9 0.6 1,937.5 - 420.9Housing loans 47,076.6 - 32,214.0 - 5,288.8Other loans 1,274.4 3.7 14.3 188.3 -
Bonds and other fixed income securities 9,478.0 824.7 5,411.7 294.3 14,498.7
Equities and other variable income securities 2,535.5 - 1,721.5 - 963.1
Long-term equity holdings and other long-term investments - 1.9 - - -
Tangible fixed assets - 9.3 - - -
Accruals, deferrals and other assets 137.9 4.7 17.3 - 121.6
TOTAL ASSETS/LIABILITIES 81,686.9 1,377.4 57,720.7 1,143.6 45,820.6
LIABILITIESInterbank and treasury transactions 5,370.8 - 2,250.5 188.2 765.3Term loans 2,515.7 - 1,680.3 188.2 765.3Other amounts due to financial institutions 2,855.1 - 570.2 - -
Savings deposits centralized with Caisse des Dépôts et Consignations 73,464.4 - 54,329.8 - 44,233.4Deposits 71,633.1 - 52, 972.7 - 42,612.4Accrued interest on deposits 1,831.3 - 1,343.4 - 1,621.0Withholding on interest payable to depositors - - 13.7 - -
Accruals, deferrals and other liabilities 88.4 100.0 77.3 0.2 282.3
Provisions for risks and charges 141.8 0.2 78.2 - 369.6
Subsidies 1,557.3 - 505.3 - -
Fund for General Banking Risks (FGBR) 807.9 - 509.7 - 188.8
Retained earnings - excluding FGBR 256.3 1,277.2 (30.1) 955.2 (18.8)Ordinary retained earnings - 1,251.6 2.2 912.3 -Unappropriated earnings 256.3 25.6 (32.3) 42.9 (18.8)
Breakdown of the Balance Sheet of Savings as of December 31, 2002
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 118
![Page 75: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/75.jpg)
Caisse des Dépôts Group - Annual Report 2002 119
LEP Livret Epargne- Other Combined Inter-fund Consolidatedreserve Jeunes Codevi Logement PEP-CNE Savings total financing totalfunds CNE Funds
547.5 568.7 157.0 8,146.2 176.0 974.1 66,469.1 - 66,469.1
297.8 205.1 680.3 551.0 78.2 172.1 5,764.9 3,425.3 2,339.6(120.4) 25.1 (19.9) 47.9 (12.9) 25.8 1,667.0 - 1,667.0418.2 180.0 700.2 503.1 91.1 146.3 4,097.9 3,425.3 672.6
- - 4,893.6 14,787.6 - - 111,730.2 199.8 111, 530.4- - - - - - 5,988.9 - 5,988.9- - - 859.4 - - 85,438.8 199.8 85,239.0- - 4,893.6 13,928.2 - - 20,302.5 - 20,302.5
42.2 285.2 2,318.0 5,206.4 898.6 1,543.3 40,801.1 - 40,801.1
- - - - - - 5,220.1 - 5,220.1
- - - - - - 1.9 - 1.9
- - - - - - 9.3 - 9.3
- - 3.5 136.9 - 0.7 422.6 97.5 325.1
887.5 1,059.0 8,052.4 28,828.1 1,152.8 2,690.2 230,419.2 3,722.6 226,696.6
- - - - - - 8,574.8 3,425.3 5,149.5- - - - - - 5,149.5 - 5,149.5- - - - - - 3,425.3 3,425.3 -
- 996.8 7,891.1 27,239.4 1,091.8 - 209,246.7 - 209,246.7- 957.5 7,643.8 26,402.0 1,053.6 - 203,275.1 - 203,275.1- 39.3 247.3 829.1 34.4 - 5,945.8 - 5,945.8- - - 8.3 3.8 - 25.8 - 25.8
0.1 0.7 5.9 51.9 1.0 9.0 616.8 97.5 519.3
- - 3.4 528.6 - 4.4 1,126.2 (299.7) 1,425.9
- - - - - - 2,062.6 299.7 1,762.9
- 5.1 89.0 960.9 39.2 - 2,600.6 - 2,600.6
887.4 56.4 63.0 47.3 20.8 2 ,676.8 6,191.5 199.8 5,991.7843.5 49.6 104.2 (0.3) 23.6 2,522.6 5,709.3 244.4 5,464.9
43.9 6.8 (41.2) 47.6 (2.8) 154.2 482.2 (44.6) 526.8
Funds centralized by Caisse des Dépôts
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 119
![Page 76: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/76.jpg)
120
Savings Funds
Off-Balance Sheet Commitments
(EURO MILLIONS) Note 14A 12.31.2002 12.31.2001
COMMITMENTS GIVEN IN RESPECT OF FINANCING,GUARANTEES AND SECURITIES 6,748.3 5,659.4
Financing commitments 6,709.9 5,178.9Offers of loans 2,709.2 2,161.2
Housing loans 2,709.2 2,161.2Undertakings to provide loans 1,913.8 1,306.1
Housing loans 1,883.8 663.9Other loans 30.0 642.2
Loans agreed not disbursed 2,086.9 1,711.6Housing loans 1,474.1 1,143.5Home-purchase loans 612.8 568.1
Guarantee commitments 38.4 38.4Other guarantees given 38.4 38.4Commitments given in respect of securities - 442.1Securities to be delivered - 442.1
COMMITMENTS RECEIVED IN RESPECT OF FINANCING,GUARANTEES AND SECURITIES 939.9 1,723.9
Guarantee commitments 926.6 943.5Guarantees received from the State 926.6 943.5Commitments received in respect of securities 13.3 780.4Securities to be received 13.3 780.4
OTHER COMMITMENTS RECEIVED AND GIVEN 21.6 44.0
Other commitments given 0.3 2.0Real estate sales commitments 0.3 2.0Other commitments received 21.3 42.0Subsidies to be received on PLA loans 21.3 42.0
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 120
![Page 77: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/77.jpg)
Caisse des Dépôts Group - Annual Report 2002 121
(EURO MILLIONS) Notes 2002 2001 Proforma
Interest and similar income 15 10,062.2 10,103.1From treasury and interbank transactions 190.7 283.1From financing transactions 5,108.4 5,025.9From fixed income transactions 4,763.1 4,794.1Interest and similar expenses 16 (7,313.2) (7,108.9)On treasury and interbank transactions (346.6) (477.5)On deposits (6,966.7) (6,631.4)Revenues from variable income securities 17 172.2 194.4Net commissions 18 (2,161.1) (2,104.4)Payments to centralizing networks (1,991.6) (1,953.6)Other commissions (169.5) (150.8)Gains or losses on trading securities (0.9) (4.3)Foreign currency transactions (0.9) (4.3)Gains or losses on available-for-sale securities 19 (517.3) 1,163.1Available-for-sale securities 608.5 1,141.9Provisions net of reversals (1,125.7) 21.2Other net operating banking revenues and expenses 20 15.7 7.6
NET BANKING INCOME 257.6 2,250.6
General and administrative expenses 21 (88.3) (86.5)
GROSS INCOME FROM OPERATIONS 169.3 2,164.1
Cost of risk (net appropriation to provisions) 22 112.3 (148.4)Provision charges net of reversals on non-performing loans 180.4 (28.1)Provisions for risk and charges net of reversals (66.9) 39.9Charges covered by a provision (1.3) (160.0)Gains or losses on irrecoverable debts 0.1 (0.2)
NET INCOME FROM OPERATIONS 281.7 2,015.7
Net movement in the FGBR 23 245.1 194.3
NET INCOME 526.8 2,210.0
Income Statement
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 121
![Page 78: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/78.jpg)
I – Highlights for the year
1) Urban Renewal Loan (PRU) subsidiesThe agreement signed on June 29, 2000 between the French State
and Caisse des Dépôts stated that the Urban Renewal Fund (FRU)
would be able to participate in financing the additional rebate pro-
vided on urban renewal loans so as to maintain their rate at 3%.
This measure was strictly limited to a line of loans of €1,524 million
granted over three years out of deposits taken on Livret A, CEP and
CNE passbooks.
Even though the interest on Livret A passbook deposits was increa-
sed from 2.25% to 3% on July 1, 2000, the rate on urban renewal
loans has been maintained at 3% since that date, in accordance
with the terms of a letter dated August 7, 2000 sent to Caisse des
Dépôts by the Minister for the Economy, Finance and Industry. This
letter stipulated that the shortfall calculated by the yield-to-maturity
method, the difference between 3% and 3.75%, would be paid by
the Urban Renewal Fund.
Agreements were signed by representatives of the Savings Funds
and the Urban Renewal Fund on April 10 and 17, 2001, respecti-
vely, setting out the methods for calculating and settling this sub-
sidy. Under these agreements, subsidies are to be called up every
six months and taken to the income statement by the yield-to-matu-
rity method as and when loans are redeemed (see Note 11).
Since the Savings Funds bear the cost of the negative spread
between the loans’ theoretical rate (3.75%) and the cost of the
resources collected on Livret A passbook deposits (4.30%), they
are required to book a provision for risks and charges.
The volume of loans already distributed has been closed at €1,463
million; the provision totaled €70 million as of December 31, 2002
(see Note 10).
The Interministerial Committee for Urban Areas meeting of October
1, 2001 voted to open two new three-year lines, a €2.3 billion Urban
Renewal Loan (PRU) line and a €1.5 billion Urban Project Loan
(PPU) line. The terms of these new lines were set forth in the
Ministerial Letter dated January 30, 2002, which in particular esta-
blishes that the rebate for the Savings Funds relating to the PRU
facility would be balanced out by a subsidy for the same amount
from the UESL. In the first half, two agreements, the first between
the DFE and the Urban Renewal Department (DRU) and the second
between the DFE and the UESL, were signed in order to implement
these measures.
2) Housing savings taxesConsistency audits revealed that La Poste had received excess fees
from the housing savings plans and accounts (PEL and CEL). In
2001, the Savings Funds recorded receivables of €50.2 million,
which corresponded to the repayment due from La Poste in light
of this overpayment. Given the still uncertain nature of this claim,
for which an appraisal is being carried out along with La Poste, a
provision for litigation was established for the same amount.
In 2002, an external audit carried out by La Poste and Caisse des
Dépôts confirmed the existence of the overcharge for 2001 and
prior years and determined the precise amount. Once this finding
was verified, the commissions actually paid were adjusted accor-
dingly (beginning in March 2002). After the audit report was sub-
mitted, Caisse des Dépôts requested that La Poste repay these
amounts, recorded €121.6 million in receivables and a €71.4 mil-
lion reduction in commissions and wrote back the €50.2 million
provision for litigation established in 2001.
3) Regional scope of long-term investmentsexpanded to the entire European Union The Ministry for the Economy, Finance and Industry authorized a
broadening of the regional scope for long-term investments of the
Savings Funds to the entire European Union, effective January 1,
2002.
Previously, these investments were only authorized for shares lis-
ted on a French market and money market instruments.
This broadening of the investment region is designed to further diver-
sify the portfolio and thereby enhance the risk/return ratio. This
authorization was accompanied by the implementation of a forma-
lized investment code, approved by the Supervisory Board, that
sets forth the risk diversification rules and maximum weighting thre-
sholds for the portfolio’s assets and asset classes.
Since January 1, 2002, the bond portfolios took advantage of this
authorization to expand their regional scope, mainly by including
euro zone sovereign issues, which saw their share of the portfolio
grow from 1.5% to 5.0%.
The reallocation resulting from this authorized geographic diversifi-
cation has been implemented very gradually and cautiously, using
reinvested cash flow as opposed to reallocations of existing holdings.
4) Divestment of securities that do not conformwith the investment codeSome investment portfolio securities were divested in order to com-
ply with the new investment code implemented by the Ministry of
the Economy, Finance and Industry in a letter dated February 18,
2002. These investments had a book value of €538 million and the
capital gain on disposal totaled €14.7 million. They were replaced
by an equivalent volume of similar securities consistent with the
investment code.
5) Non-recovery riskIn 2002, Caisse des Dépôts revised its estimation method used to
calculate non-recovery risk, which had caused loans to be down-
graded to non-performing. This change was the result of a retros-
pective analysis, which revealed that the method used to date with
regard to CGLLS protocol borrowers was excessively cautious.
Loans to these borrowers were kept on watch as non-performing
loans, even though they did not present any non-payment events
and enjoyed the CGLLS backing as part of the implementation of
restructuring plans. As of December 31, 2002, given the absence
of risk on these loans for the period under review, namely the years
2000 to 2002, the loans were reclassified as performing as of the
signature date of the CGLLS protocol. This revised estimate led to
a €125 million write-back on the ICNE provisions, recorded as a
reduction in the risk cost.
122
Savings Funds
Notes to the Financial Statements
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 122
![Page 79: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/79.jpg)
II – Accounting Policies and Methods
The financial statements have been prepared in accordance with
generally accepted accounting principles in France and specific
regulations applicable to financial institutions.
1) Fixed assets and long-term equity holdingsFixed assets are valued at cost. In the case of buildings, the cost of
initial fixtures, fittings and installations may be added to the acqui-
sition cost.
The asset represented by property built on land belonging to a third
party and made available under a capital lease is depreciated over
18 years, which corresponds to the term of the lease.
A provision for impairment is recorded in respect of land holdings
when there is a lasting decrease in their value.
Investments in non-trading real estate investment companies are
recorded at cost. Provisions for impairment are recorded when there
is lasting decrease in value determined by reference to the com-
panies’ net asset value.
2) Loans and borrowingsLoans and borrowings are recorded at redemption value.
➔ LoansCertain loans are repayable in increasing annual installments, resul-
ting in cumulative differences between interest accrued and inter-
est payable. These differences are recorded as accrued interest,
which is collected gradually over the life of the loan.
When there is a risk that outstanding loans may not be collected,
the loans are reclassified as non-performing loans and provisions
are made after taking into account any collateral received. Interest
and due but unpaid capital amounts are provided in full. The conta-
gion principle is implemented, except in certain cases where non-
payments are due to factors unrelated to the debtor’s situation
(contract litigation).
When a single borrower has both preferred and subordinated debt
at the same time, the subordinated debt may be subject to a down-
grade and the establishment of a provision, even though, as an
exception to the contagion principle, the preferred debt is not down-
graded to non-performing loan status. The preferred debt risk is
clearly less material than the risk on the subordinated debt.
Compensation received when loans are repaid early or reschedu-
led is credited to income in the year when it is received.
Capital gains arising on the transfer of loans between Savings Funds
are eliminated in the accounts of the Savings Funds centralized by
Caisse des Dépôts.
When the loans and borrowings of GGLLS and former government
loans are assumed by the Savings Funds, the difference between the
transaction value and the book value is recorded as a premium or
discount, which is amortized by the yield-to-maturity method over
the life of the corresponding loans or borrowings. Provisions for impair-
ment are recorded in respect of premiums on loans with a high risk
of being rescheduled or repaid early, since any premium paid when
these loans were assumed no longer has any financial substance.
The amortization schedule is updated every quarter to reflect loans
having given rise to early repayment or rescheduling as well as any
changes in interest rates.
➔ BorrowingsLoans payable are recorded in the balance sheet at redemption
value. Interest expense is charged to the income statement on an
accrual basis.
3) Available-for-sale securitiesThe rules for the valuation of available-for-sale securities depend on
the category to which they belong.
➔ Fixed income securitiesAt the time of purchase, fixed income securities are recorded at face
value, with the difference (premium or discount) between cost and
face value taken to a separate account.
At year end:
– the premium or discount is recognized in the income statement
on a straight-line basis over the remaining life of the security;
– a provision for impairment is taken on a line-by-line basis in res-
pect of any unrealized loss determined by reference to the mark-
to-market value at end-December (end-June in the case of the
half-year accounts). Fixed income securities have been accoun-
ted for on a first-in, first-out (FIFO) basis since January 1, 1999.
➔ Variable income securitiesVariable income securities are recorded at cost and revalued at year-
end and when sold using the weighted average cost method.
A provision is taken when weighted average cost exceeds mark-
to-market value at end-December or the future realizable value of
commitments received, or the latest redemption value in the case
of units in mutual funds.
➔ Negotiable debt securities and other interbanksecuritiesAt the time of purchase, these securities are recorded at face value,
with the difference (premium or discount) between cost and face
value taken to a separate account.
At year-end the premium or discount is recognized in the income
statement by the yield-to-maturity method over the remaining life
of the security. Provisions are taken by reference to the solvency of
the issuer and market indicators.
4) Investment portfolioThis portfolio was set up on January 1, 1999 and comprises bonds
and negotiable debt instruments acquired with the intention of being
held on a long-term basis - normally to maturity - and for which
resources considered to have at least the same maturity have been
earmarked.
The securities are accounted for in accordance with rules applicable
to investment portfolios. Therefore:
– provisions are not taken in respect of unrealized capital losses;
– any premium or discount is spread over the remaining life of the
security by the yield-to-maturity method for negotiable debt secu-
rities and on a straight-line basis for bonds.
Securities are accounted for on a first-in, first-out (FIFO) basis.
5) Temporary disposal of securities➔ Lending and borrowing of securitiesSecurities lent are recorded on a separate line on the assets side of
Caisse des Dépôts Group - Annual Report 2002 123
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 123
![Page 80: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/80.jpg)
the balance sheet at their book value in the portfolio from which they
were transferred, determined using the first-in, first-out (FIFO) method.
At year-end, they are valued in accordance with rules applicable to
the portfolios from which they were transferred.
Securities borrowed are recorded at their market value on the day
they were borrowed, as an asset under trading securities and as a
liability representing the amount due to the lender.
At year-end, these items are marked to market.
Interest arising from lending and borrowing of securities is recogni-
zed on an accruals basis.
➔ Securities sold (purchased) under collateralizedfixed repurchase (resale) agreementsSecurities sold under collateralized fixed repurchase agreements
are maintained in their original portfolio and continue to be valued
according to the rules applicable to that portfolio. They are recor-
ded on a separate line under liabilities.
Securities received as collateral are recorded under assets, with the
entry representing the amount receivable. These securities are not
revalued.
At year-end, income or charges arising from the above agreements
are recognized on an accruals basis.
6) Public exchange offersThe exchange value used to determine the result of share exchange
offers corresponds to the average stock market price for the com-
pany making the offer, calculated over the period commencing on,
but not including, the date of publication of the notice of filing of the
offer with the appropriate authorities and ending on, and including,
the date of publication of the results of the offer by these same
authorities. Prices used are market prices at the close of business
each day during the reference period. If several offers are filed in
respect of the same securities, the period of reference starts on the
date of the first offer.
7) Off-balance-sheet commitments (other than interest rate swaps)Off-balance sheet commitments relate mainly to loans that have
been granted but for which the funds have not yet been disbursed.
Off-balance sheet commitments received include State guarantees
and securities commitments; the commitments received from local
governments in the form of guarantees are not itemized. They involve
the bulk of the loan volume of the Savings Funds.
8) Interest rate swapsInterest rate swaps entered into by the Savings Funds in order to
hedge specific, perfectly identified transactions are reported as off-
balance sheet commitments.
Income and expenses generated by these instruments are reco-
gnized in the income statement symmetrically with the results gene-
rated by the hedged item.
9) Foreign currency transactionsForeign currency assets and liabilities are translated at the year-
end exchange rates. Spot transactions are translated at the spot
rate, while forward transactions are translated at the forward rate
for the remaining term.
10) Provisions for risks and chargesProvisions are booked for losses that are certain, resulting from loan
programs at rates that are lower than the cost of the related
resources:
– for the LEP program, part of the PLI loans has been refinanced
by borrowings and a provision has been recorded to cover the
actuarial loss;
– in the case of loans bearing interest at rates that are lower than
the cost of the resources, provisions are booked to cover the
actuarial loss. This concerns PLA-TS and urban renewal project
loans, loans for emergency housing projects and demolition-
reconstruction loans indexed on Livret A rates, as well as PLI loans
that are not refinanced by borrowings and PPU loans paid out of
LEP funds.
The provision for losses relating to all Livret A funds is shared across
all funds since resources financing these loans are of the same
nature and bear identical interest rates.
A provision has also been recorded to cover specific risks related
to home-purchase savings products.
This risk, which corresponds to the commitment to grant loans at a
rate that is set contractually in advance, is currently evaluated on a
global basis at 2% of all housing savings deposits at the year-end. As
of December 31, 2002, €38.7 million was allocated to this provision.
11) Funds for general banking risks (FGBR)The funds for general banking risks are intended to cover general
banking risks inherent to the activity of lending and investing in finan-
cial markets. These funds have been constituted by each of the
Savings Funds as a complement to specific provisions recorded by
each of them, so as to ensure that they satisfy minimal capital ade-
quacy requirements as laid down in applicable banking regulations
for counterparty and market risks.
The Home Financing Reserve Fund (Fonds de Réserve du
Financement du Logement, or FRFL), whose liabilities consist of
retained earnings derived indirectly from the cumulative difference
between accrued and invoiced interest has not constituted a fund
for general banking risks, since its capital requirements are amply
covered.
Capital adequacy requirements are covered by regulatory reserves
when these exist, and by the Fund for general banking risks, avai-
lable reserves, retained earnings and income for the year.
The method used to calculate the amount of the Fund for general
banking risks is based on covering the risk through two sequential
steps:
– by the establishment of reserves as required by regulations;
– and then by an allocation to the Fund for general banking risks,
regardless of the existence of available reserves and retained ear-
nings.
This risk is equivalent to the sum of the three capital adequacy com-
ponents for each Savings Fund:
– a component that corresponds to the capital adequacy require-
ment arising from the application of the European solvency ratio,
based on the assets of each fund;
– a second component that corresponds to the capital adequacy
requirement to cover market risk, based on the trading assets of
each fund;
– a component for so-called “projected risks.”
124
Savings Funds
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 124
![Page 81: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/81.jpg)
The coverage of the available-for-sale portfolio’s market risk corres-
ponds, in effect, to the year-end capital adequacy requirements. For
management purposes, this requirement may be substantially less
than the portfolio’s potential exposure to market risks. The FGBR’s
ex ante component represents the additional capital that corres-
ponds to the difference between the potential and actual exposure.
For 2002, given the uncertainty surrounding in particular the Noyer-
Nasse risk assessment study and the capital adequacy require-
ments for the Savings Funds, the market risk coverage remained
unchanged.
III – Financial information on Market Risks
1) Assets/Liabilities ManagementThe Savings Funds are exposed to a refinancing risk since they
make medium-to long-term loans out of resources repayable on
demand. However, given the stability of these resources in the past,
the fact that interest rates for most loans are indexed to the cost of
these resources and the satisfactory level of liquidity, the Savings
Funds are able to refinance themselves without being exposed to
a significant risk. Interest rate and liquidity risks are measured using
asset-liability management systems calibrated to take into account
the characteristics of the assets and liabilities to the utmost level of
detail. In particular, it is possible to model the balance sheet to reflect
various assumptions regarding deposit taking and lending. To pro-
vide depositors with the highest possible level of protection, the size
and structure of the portfolio of financial assets are designed to leave
real possibilities for adapting the portfolio to possible changes in
liquidity risk, while protecting the interest margin earned now and
in the future against movements in interest rates.
Throughout the year, the groundwork was laid for the transition to
new capital adequacy requirements for the Savings Funds, in par-
ticular to calibrate their level relative to that of the balance sheet
risks.
2) Risk managementRisk management at Caisse des Dépôts Group is organized on a
three-tier basis, at the levels of the business line, institution and
group. At the group level, Central Control sets standards and
approves systems and methods. The Risk Management Department
is responsible, at the level of the Public Institution, for monitoring
the financial risk to which portfolios are exposed.
Regarding credit risk, a Counterparty Risk Committee meets each
month and is responsible for:
– defining and monitoring the credit risk policy;
– approving the method for setting counterparty limits, based on
proposals by Risk Management;
– setting limits by counterparty, based on proposals by Risk
Management, bearing in mind that the limits for each portfolio are
independent of one another.
Risk Management is responsible for controlling day by day that each
financial department complies with the limits set. When proposing limits,
this work is based on summary data, mainly from the analyses provi-
ded by CDC IXIS, credit rating agencies and published information.
At end-2002, the Savings Funds’ largest commitment by counter-
party of the fixed income portfolios was the French State, with 62%.
The activity of the Savings Funds is regulated, and until December
31, 1999 the use of derivative products was limited mainly to inter-
est rate swaps entered into for micro-hedging purposes, namely to
cover specific transactions as authorized or requested by the super-
visory authorities. These transactions, which are recorded off-
balance sheet, totaled €1.9 billion as of December 31, 2002, of
which €1.2 billion was with Crédit Foncier in connection with PLI
loans.
In July 1999, the Ministry of the Economy, Finance and Industry
authorized the Savings Funds to make more frequent use of deri-
vative products, with a view to reducing portfolio sensitivity.
Therefore, the Savings Funds have entered into a number of tran-
sactions since 2000 that involve derivatives such as swaps and
notional contracts traded on the MATIF.
At year-end, the derivative volume totaled €3.5 billion; swap
contracts totaling €2.7 billion were entered into during the year.
Caisse des Dépôts Group - Annual Report 2002 125
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 125
![Page 82: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/82.jpg)
IV – Financial statements presentation
The financial statements present the overall situation of the Savings
Funds centralized by Caisse des Dépôts.
They include the following funds:
• Caisses d’Epargne et de Prévoyance (CEP): Livret A;
• CEP Reserve and Guarantee Fund;
• Caisse Nationale d'Epargne (CNE): Livret A and B;
• CNE Reserve and Guarantee Fund;
• Livret d’Epargne Populaire (LEP): funds centralized by CEP, CNE,
banks and other networks;
• LEP Reserve Fund;
• Livret Jeunes (LJ);
• LJ Reserve Fund;
• CODEVI Fund;
• Home-purchase savings plans;
• PEP-CNE Fund;
• Other funds:
– Home Financing Reserve Fund (FRFL);
– CEP Home Savings Reserve Fund;
– Home Building Fund;
– SDR Guarantee Fund;
– CFF Special Fund.
The management of each of these Funds is the object of separate
financial statements. These financial statements provide an overall
view and a breakdown by fund.
126
Savings Funds
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 126
![Page 83: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/83.jpg)
Caisse des Dépôts Group - Annual Report 2002 127
Note 1 – Treasury and Interbank Transactions - Assets
(EURO MILLIONS) 12.31.2002 12.31.2001
Ordinary accounts 1,667.0 1,925.4Current accounts (1) 397.5 730.9Current accounts representing minimum reserves 1,269.0 1,192.8Accrued interest 0.4 1.7Other amounts due by financial institutions 672.6 152.8Securities purchased under collateralized fixed resale agreements 671.6 152.7Accrued interest 1.0 0.1
TOTAL 2,339.6 2,078.2
(1) The Public Institution Caisse des Dépôts et Consignations, as a legal entity – the Central Sector – is the Savings Funds’ banker. As such, it centralizes the cash resources and provides all the services of a banking nature.
Note 2 – Financing Transactions
A) INFRASTRUCTURE LOANS
(EURO MILLIONS) 12.31.2002 Payments Repayments Early Other 12.31.2001repayments movements (1)
Infrastructure loans 5,766.8 (1,259.6) (141.5) 4.0 7,163.9New uses 26.6 26.6Capital 5,793.4 26.6 (1,259.6) (141.5) 4.0 7,163.9Accrued interest not due 193.0 - - (51.9) 244.9Installments being collected - - - (0.1) 0.1Unpaid installments 2.4 - - (5.1) 7.5
TOTAL 5,988.9 26.6 (1,259.6) (141.5) (53.1) 7,416.4
Of which:Non-performing loans and interest 137.4 - - 17.5 119.9Provisions (20.1) - - 2.0 (22.1)
(1) Including rescheduled loans and changes in non-performing loans net of related provisions.
Since the financing activity of the Savings Funds is analyzed fundamentally by reference to the nature of the loans, customer loans (inclu-
ding loans to financial institutions) are grouped under the heading of “Financing Transactions”.
As of December 31, 2002, loans to financial institutions amounted to €8,601.4 million, down from €9,195.2 million the previous year,
including accrued interest.
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 127
![Page 84: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/84.jpg)
128
Savings Funds
B) HOUSING LOANS
(EURO MILLIONS) 12.31.2002 Payments Repayments Early Other 12.31.2001repayments movements (2)
PLA (1) (3) 43,609.6 2,073.2 (774.6) (47.6) 36.7 42,321.9PAM et PRV (3) 7,186.4 439.6 (682.6) (44.4) 78.7 7,395.1PLI et PHEBE (4) 2,814.2 410.0 (62.1) (19.5) 10.4 2,475.4PAP 4.9 - (2.5) (7.6) (0.7) 15.7CFF pool PAP 2,001.7 - (796.4) - (1.0) 2,799.1PPU 2,859.1 249.3 (177.8) (5.8) 0.9 2,792.4HLMA-HLMO (3) 5,446.3 - (490.1) (18.4) 124.8 5,830.0Other (3) 15,724.3 1,081.7 (844.2) (65.4) 13.0 15,539.1Capital 79,646.5 4,253.9 (3,830.3) (208.7) 262.9 79,168.7Accrued interest not due 5,461.2 - - - (61.3) 5,522.5Installments being collected 146.9 - - - 147.0 (0.1)Unpaid installments 3.8 - - - (86.5) 90.3Early repayments -being processed (19.5) - - - 20.8 (40.3)
TOTAL 85,239.0 4,253.9 (3,830.3) (208.7) 282.9 84,741.1
(1) Excluding subsidies.(2) Including the reversal or amortization of premiums and discounts, capitalized interest, changes in non-performing loans net of related provisions and rescheduled loans.(3) Rescheduled PLA, PAM and HLMA-HLMO loans were reclassified under “Other housing loans”.(4) Including April 1, 2001 write-back of PLI-Ile-de-France loans amounting to €107.2 million and a premium of €19.8 million.
In addition, a provision for impairment was set up for the premium paid on the assignment of the CGLLS PLA loans covering the entireamount remaining to be deferred (€10.3 million as of December 31, 2002, down from €11.1 million the previous year), as it is probablethat all loans concerned will be rescheduled at a lower rate than when assigned.
Non-performing loans and provisions are analyzed below:
(EURO MILLIONS) 12.31.2002 12.31.2001Principal Provisions Net Principal Provisions Net
and interest and interest
PLA 1,850.5 282.9 1,567.6 3,098.9 434.2 2,664.7PAM et PRV 598.5 38.8 559.7 476.2 35.0 441.2PLI et PHEBE 41.3 3.4 38.0 47.3 3.4 43.9PAP 0.5 0.0 0.5 1.3 0.1 1.2PPU 159.4 6.8 152.6 67.1 15.1 52.0HLMA-HLMO 302.5 8.4 294.1 295.6 8.4 287.2Other 1,100.9 137.5 963.4 1,048.1 136.3 911.8
TOTAL 4,053.6 477.8 3,575.8 5,034.5 632.5 4,402.0
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 128
![Page 85: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/85.jpg)
Caisse des Dépôts Group - Annual Report 2002 129
C) OTHER LOANSOther loans are analyzed below:
(EURO MILLIONS) 12.31.2002 Payments Repayments Early Other 12.31.2001repayments movements (1)
Codevi loansBDPME 3,165.5 350.0 (152.4) - - 2,967.9SDR 575.2 - (131.4) (99.7) - 806.3Other 41.9 - (31.3) - - 73.2
Capital 3,782.6 350.0 (315.1) (99.7) - 3,847.4Accrued interest not due 137.8 - - - 1.6 136.2Installments being collected 46.2 46.2Unpaid installments 11.4 - - - 2.0 9.4
TOTAL 3,978.0 350.0 (315.1) (99.7) 49.8 3,993.0
Of which:Non-performing loans and interest - - - - - -Provisions - - - - - -
Home-purchase loansPrimary loans 2,528.0 587.8 (489.9) (79.4) (0.2) 2,509.7Supplementary loans 9,636.4 2,469.6 (599.9) (282.7) (1.0) 8,050.4Subsidized loans 1,709.7 497.4 (77.8) (96.0) (0.1) 1,386.2Capital 13,874.1 3,554.8 (1,167.6) (458.1) (1.4) 11,946.2Accrued interest not due 42.7 - - - 4.5 38.2Installments being collected 10.2 - - - (0.1) 10.3Unpaid installments 1.0 - - - 0.2 0.8
TOTAL 13,927.9 3,554.8 (1,167.6) (458.1) 3.2 11,995.5
Of which:Non-performing loans and interest 23.5 - - - 1.4 22.1Provisions (9.7) - - - 0.6 (10.3)
Miscellaneous other loansCNCEP (2) 1,203.4 161.0 (127.1) - - 1,169,5Other loans (3) 1,134.2 (4.7) (1.7) 40.4 1,100,2
Capital 2,337.6 161.0 (131.8) (1.7) 40.4 2,269.7Accrued interest not due 59.0 - - - - 59.0Installments being collected - - - - (0.5) 0.5Unpaid installments - (14.5) 14.5
TOTAL 2,396.6 161.0 (131.8) (1.7) 25.4 2,343.7
Of which:Non-performing loans and interest (3) 416.2 - - - 416.2 -Provisions (34.9) - - - (34.9) -
TOTAL OTHER LOANS 20,302.5 4,065.8 (1,614.5) (559.5) 78.4 18,332.2
(1) Including change in non-performing loans net of related provisions.(2) Refinancing of CNCEP from January 1, 2000, after the complete centralization (previously 50%) of the Livret A of the Regional Savings Banks, Caisses d’Epargne d’Alsace and Moselle.(3) Including a €416 million subordinated debt reclassified as a non-performing loan and benefiting from a full State guarantee, recorded off-balance sheet (see Note 14).
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 129
![Page 86: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/86.jpg)
130
Savings Funds
A) BREAKDOWN BY NATURE AND TYPE OF PORTFOLIO, NET OF PROVISIONS
(EURO MILLIONS) 12.31.2002 12.31.2002 12.31.2001 12.31.2001Available-for- Investment Available-for- Investmentsale securities securities sale securities securities
Public-sector securities and similarFrench government securities 24,432.0 13,876.3 24,354.0 16,637.9Treasury bills 17,434.7 2,163.6 21,484.4 2,324.7Securities lent (1) 4,094.4 4,468.1 4,481.1 2,678.6
SUB-TOTAL BY PORTFOLIO 45,961.1 20,508.0 50,319.5 21,641.2
TOTAL ALL PORTFOLIOS 66,469.1 71,960.7
Bonds and other fixed income securitiesBonds 15,759.1 6,746.8 13,181.2 6,871.1Other fixed income securities 16,752.7 1,490.1 7,753.3 1,558.0Securities loaned (1) 10.8 41.6 34.2 -
SUB-TOTAL BY PORTFOLIO 32,522.6 8,278.5 20,968.7 8,429.1
TOTAL ALL PORTFOLIOS 40,801.1 29,397.8
Equities and other variable income securitiesEquities 5,002.0 - 5,512.5Other variable income securities (including mutual funds) (2) 218.1 - 212.6 -
SUB-TOTAL BY PORTFOLIO 5,220.1 - 5,725.1 -
TOTAL ALL PORTFOLIOS 5,220.1 5,725.1
SUB-TOTAL BY PORTFOLIO (3) 83,703.8 28,786.5 77,013.3 30,070.3
TOTAL ALL PORTFOLIOS 112,490.3 107,083.6
(1) Details of securities loaned.
(EURO MILLIONS) 12.31.2002 12.31.2002 12.31.2001 12.31.2001Available-for- Investment Available-for- Investmentsale securities securities sale securities securities
French government securities 778.6 4,150.7 2,617.3 2,528.9Treasury bills 3,315.8 317.4 1,863.8 149.7Bonds 10.8 41.6 19.9 - Other fixed income securities - - 14.3 -
TOTAL 4,105.2 4,509.7 4,515.3 2,678.6
(2) Of which, dedicated mutual funds - FCP Obligation Epargne, which had a book value of €43.3 million and a net asset value of €104.64 million as of December 31, 2002 (compared with €64.9 million and €145.4 million, respectively, the previous year).(3) In 2001, a total of €7.3 billion was channeled into investment securities, which increased by €3.5 billion after taking redemptions into account. In 2002, investment securities no longer consistent with the new investment code established by the Ministry of the Economy, Finance and Industry were sold.These investment lines had a face value of €538 million, and generated a capital gain of €14.7 million.
Note 3 – Securities Transactions
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 130
![Page 87: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/87.jpg)
Caisse des Dépôts Group - Annual Report 2002 131
B) SUPPLEMENTARY INFORMATION
(EURO MILLIONS) 12.31.2002 12.31.2002 12.31.2001 12.31.2001Available-for- Investment Available-for- Investmentsale securities securities sale securities securities
Public-sector securities and similarGross value 44,173.4 19,437.0 48,095.0 20,397.4Premiums/Discounts 553.6 391.4 809.6 556.6Related receivables 1,234.1 679.6 1,472.7 687.2Provisions - - (57.8) -
NET BOOK VALUE BY PORTFOLIO 45,961.1 20,508.0 50,319.5 21,641.2
NET BOOK VALUE OF ALL PORTFOLIOS 66,469.1 71,960.7
Market value of available-for-sale and investment securities 46,272.5 20,644.6 49,748.7 20,984.1Redemption value of available-for-sale and investment securities 44,173.4 19,437.0 48,095.0 20,397.4
Bonds and other fixed income securitiesGross value 31,875.0 7,932.8 20,499.9 8,049.6Premiums/discounts 166.7 99.0 109.9 125.2Related receivables 505.5 246.7 457.5 254.3Provisions (24.6) - (98.6) -
NET BOOK VALUE BY PORTFOLIO 32,522.6 8,278.5 20,968.7 8,429.1
NET BOOK VALUE OF ALL PORTFOLIOS 40,801.1 29,397.8
Market value of available-for-sale and investment securities 32,720.7 8,326.2 20,722.3 8,094.3Redemption value of available-for-sale and investment securities 31,875.0 7,932.8 20,499.9 8,049.6
Equities and other variable income securitiesGross value 6,831.8 - 6,079.3 - Related receivables 0.1 - 0.1 - Provisions (1,611.8) - (354.3) -
NET BOOK VALUE 5,220.1 - 5,725.1 -
Market value of available-for-sale and investment securities 7,459.5 9,964.8
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 131
![Page 88: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/88.jpg)
132
Savings Funds
Note 5 – Tangible Fixed Assets
(EURO MILLIONS) 12.31.2002 Other 12.31.2001movements (2)
Investment propertyBuildings (1) 8.9 (5.0) 13.9
Gross value 81.3 - 81.3Depreciation (72.4) (5.0) (67.4)
Land 0.5 (0.9) 1.4Gross value 1.1 (1.0) 2.1Depreciation - -Provisions (0.6) 0.1 (0.7)
TOTAL 9.3 (6.0) 15.3
Gross value 82.4 (1.0) 83.4Depreciation (72.4) (5.0) (67.4)Provisions (0.6) 0.1 (0.7)
(1) This relates to a building erected on land belonging to a third party and made available under a finance lease.(2) This corresponds to asset disposals, depreciation charges and provisions net of reversals.
(EURO MILLIONS) 12.31.2002 12.31.2001
Long-term equity holdings 1.6 1.6Gross value 1.6 1.6Advances 0.3 0.3Gross value 0.3 0.3
TOTAL 1.9 1.9
(EURO MILLIONS) 12.31.2002 12.31.2001
Accruals and deferrals 198.3 101.8Accrued income 195.2 67.0
Accrued income on financial instruments 55.6 38.5Home-purchase premiums receivable 13.5 -Other accrued income (1) 126.1 28.5
Prepaid expenses 0.3 0.4Prepaid expenses on financial instruments 0.3 0.4
Deferred losses on derivatives 2.7 24.0Other accruals and deferrals on loans 0.2 10.4Other assets 126.8 94.9Interest subsidies and other subsidies receivable 46.7 37.4
PLA subsidies receivable 8.8 7.7PRU subsidies receivable 37.2 28.2Interest subsidies and rebates receivable 0.8 1.5
Advances on CDE refinancing 77.7 54.2Miscellaneous receivables 2.3 3.3
TOTAL 325.1 196.7
(1) Of which, €121.6 million in receivables as of December 31, 2002 corresponding to commission repayments. In 2001, commission receivables amounted to€50.2 million fully provisioned (see Introductory Note I-2).Of which, €23.5 million in receivables corresponding to capital gains on the disposal of securities to be delivered as of December 31, 2001.
Note 4 – Long-term Equity Holdings and other Long-term Investments
Note 6 – Accruals, Deferrals and other Assets
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 132
![Page 89: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/89.jpg)
Caisse des Dépôts Group - Annual Report 2002 133
(EURO MILLIONS) 12.31.2002 12.31.2001
Term loans 5,149.5 5,966.8From CFF (PLI) (1) 157.6 165.9From Caisse des Dépôts et Consignations - Central Sector (PPU) (2) 45.7 45.7From CDC-IXIS (PLI) (3) 735.1 738.7Livret Bleu loans (4) 18.3 36.6Loans assumed from CGLLS (5) 3,854.2 4,664.9Advances from Caisse des Dépôts et Consignations - Central Sector (6) 186.3 145.2Accrued interest 152.3 169.8Other amounts due to financial institutions - -Securities sold under collateralized fixed repurchase agreements - -Accrued interest - -
TOTAL 5,149.5 5,966.8
(1) Refinancing of PLI loans (maturity 2015 and 2016).(2) Refinancing of PPU loans (maturity 2021).(3) Refinancing of PLI loans (€400 million matures in 2019, the rest in 2008) and assumption on April 1, 2001 of CDC IXIS loan refinancing
the Ile-de-France PLI loans (€93.4 million with a €38.6 million premium).(4) Maturity: 2003.(5) Made available by CDC IXIS in connection with the assumption of CGLLS loans (maturity: 2009 through to 2029).(6) Refinancing of participating loans to Crédit Logement.
Note 8 – Deposits
A) CENTRALIZED DEPOSITS
(EURO MILLIONS) Deposits Interest Deposits Deposits Interest Depositsas of capitalized as of as of as of capitalized as of as of
01.01.2003 01.01.2003 31.12.2002 01.01.2002 01.01.2002 31.12.2001(3) (3)
Livret A - CEP 64,725.7 1,827.0 62,898.7 62,588.9 1,756.1 60,832.8Livrets A & B - CNE 48,492.5 1,342.7 47,149.8 46,101.2 1,268.0 44,833.2LEP 44,339.0 1,726.6 42,612.4 42,160.3 1,633.6 40,526.7Livret Jeunes 996.2 38.7 957.5 927.8 37.0 890.8Codevi (1) 7,643.8 0.0 7,643.8 6,965.2 0.0 6,965.2Home-purchase 27,224.8 822.9 26,402.0 25,254.0 785.1 24,468.9PEP-CNE 1,087.6 34.0 1,053.6 1,166.1 39.2 1,126.9Crédit Mutuel Livret Bleu (2) 14,557.3 0.0 14,557.3 13,785.0 0.0 13,785.0
TOTAL 209, 067.0 5,791.9 203,275.1 198,948.5 5,519.0 193,429.5
(1) Codevi deposits have been used to finance an issue of industrial development securities (Titres pour le Développement Industriel, or TDI) paying interest atthe Codevi rate plus 1.5%. Amounts capitalized on deposits are centralized the following year.(2) Until December 31, 1998 and in accordance with the memorandum of April 27, 1991 on requiring funds collected on Crédit Mutuel’s Livret Bleu to be used inthe public interest, Caisse des Dépôts et Consignations centralized 85% of the funds deposited with Crédit Mutuel and invested them for 15% in money marketinstruments, with the remaining 85% lent to the Livret A to finance public housing. Under the agreement of December 31, 1998, Crédit Mutuel centralized 100%of its deposits with Caisse des Dépôts et Consignations. The Livret Bleu section has been transferred to the CEP Livret A and the CNE Livrets A and B for 60%and 40%, respectively, i.e. €8.73 billion and €5.82 billion as of December 31, 2002 (compared with €8.27 billion and €5.51 billion the previous year).(3) Capitalized interest takes into account cumulative interest accrued during the year as well as specific items (method of centralization of the LEP Funds, etc.).It therefore is not directly comparable with accrued interest reported in the table below.
Since the centralizing of savings deposits is analyzed fundamentally by reference to the nature of the Savings Funds centralized, custo-
mer deposits (including amounts due to financial institutions) are grouped under the heading of “Centralized deposits”. As of December
31, 2002 deposits by financial institutions amounted to €112,306.1 million (up from €107,709.4 million the previous year), accrued inter-
est included.
Note 7 – Treasury and Interbank Transactions-Liabilities
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
7/Fdépargne/p116_133/US_BAG 30/07/2003 16:43 Page 133
![Page 90: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/90.jpg)
134
Savings Funds
B) RELATED ACCRUED INTEREST
(EURO MILLIONS) 12.31.2002 12.31.2001
Livret A - CEP 1,831.3 1,760.3Livrets A & B - CNE 1,343.4 1,273.4LEP (1) 1,620.9 1,534.9Livret Jeunes 39.3 37.0Codevi 247.4 213.1Home-purchase 829.1 791.9PEP-CNE 34.4 39.6Crédit Mutuel Livret Bleu (2) - -
TOTAL 5,945.8 5,650.2
(1) Accrued interest on LEP loans as of December 31, 2002 does not take into account interest for the month of December for the bank and local savingsbank networks, which has been recorded under “Miscellaneous payables” (€114.5 million as of December 31, 2002, compared with €109.2 million theprevious year), as the corresponding deposits are only centralized in January of the following year.(2) In accordance with the agreement of December 31,1998 between Caisse des Dépôts et Consignations and Crédit Mutuel, interest on the Livret Bleu ispaid on the last working day of the year.
C) LEVIES ON INTEREST DUE TO DEPOSITORS
(EURO MILLIONS) 12.31.2002 12.31.2001
Livret B - CNE 13.7 10.2Home-purchase 8.3 11.0PEP-CNE 3.8 0.4
TOTAL 25.8 21.6
This relates to withholding tax and various social security contributions payable on taxable savings products.
Note 9 – Accruals, Deferrals and other Liabilities
(EURO MILLIONS) 12.31.2002 12.31.2001
Accruals and deferrals 494.6 470.0Accrued charges 480.5 438.1
Amounts payable to centralizing networks 268.0 256.2Accrued charges on financial instruments 78.8 50.0Home-purchase bonus to be repaid - 3.4Interest payable on LEP deposits 114.5 109.2Other accruals 19.2 19.3
Deferred income 0.4 0.4Deferred income on financial instruments 0.4 0.4
Gains to be spread on financial instruments 13.7 0.3Foreign exchange adjustment accounts - 6.5Other accruals and deferrals 0.1 24.7
On loans 0.1 24.3On securities - 0.4
Other liabilities 24.6 21.5Interest subsidies and other subsidies payable 5.8 13.7
Geothermal heating subsidies - 6.1Interest subsidies payable 5.8 7.6
Other miscellaneous payables 18.9 7.8Income on CFF Special Fund payable to the State 7.9 7.6Payables on FRU loan 10.8 -Other miscellaneous payables 0.2 0.2
TOTAL 519.3 491.5
8/Fdépargne/p134_146/US_BAG 30/07/2003 16:44 Page 134
![Page 91: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/91.jpg)
Caisse des Dépôts Group - Annual Report 2002 135
(EURO MILLIONS) 12.31.2001 Provisions Reversals 12.31.2002
PLI and PPU (LEP) (1) 386.0 6.3 23.3 369.0SDR and FIM loans (Codevi) (2) 5.0 2.0 3.0Geothermal heating (Livret A) (2) 21.3 2.3 19.0PDR (Livret A) (5) (1) 82.0 19.0 31.0 70.0Loans at 4.20% (including PLUS) (Livret A) (1) 88.5 41.3 0.9 129.0PLA-TS (Livret A) (1) 272.9 36.5 9.7 299.7Public-housing rebate (Livret A and LEP) 7.4 7.4 0.0Litigation (3) 4.5 4.5Home-purchase (4) 489.4 38.7 528.1Hedging instruments 2.0 3.0 1.2 3.8
TOTAL 1,359.0 144.7 77.8 1,425.9
(1) These loans generate interest at rates that are below the cost of the related resources. A provision has therefore been booked to cover the resultingactuarial loss adjusted to take account of payments and new loan programs.(2) These loans have been rescheduled and now generate interest at rates that are below the cost of the related resources. A provision has therefore been booked to cover the future actuarial loss arising from this rescheduling. (3) Of which, CFF provisions (€4.3 million).(4) Specific provision in respect of home-purchase savings plans (see Introductory Note II-10).(5) These loans will be fully subsidized by UESL beginning with the implementation of the new 2002-2004 program (see Introductory Note I-1).
Note 10 – Provisions for Risks and Charges
Subsidies relate mainly to PLA loans granted directly. They are taken to the income statement over the life of the related loans. As of
December 31, 2002, subsidies amounting to €8.8 million had not been received and were therefore recorded under “Accruals, deferrals
and other assets”.
(EURO MILLIONS) 12.31.2002 12.31.2001CEP CNE CEP CNE
Gross subsidies (1) 2,087.0 1,011.4 1,963.1 990.3Taken to income statement (529.7) (506.1) (465.3) (471.7)Eliminations between funds (2) (299.7) (272.9) -Sub-total 1,257.6 505.3 1,224.9 518.6
TOTAL 1,762.9 1,743.5
(1) Including subsidies on PRU loans: €60.9 million on CEP Livret A and €44.7 million on CNE Livret A and B loans as of December 31, 2002 (compared with €32.1 million and €27.5 million, respectively, the previous year). A portion still to be received was recorded under “Accruals, Deferrals andother Assets” in the amount of €37.2 million as of December 31, 2002 (compared with €28.2 million the previous year).(2) Subsidy paid by the FRGCE to the CEP Livret A Fund to offset the actuarial losses corresponding to the negative spread between lending rates and thecost of the Livret A resources. This subsidy is paid in respect of highly subsidized PLA loans, emergency housing loans and urban renewal project loans.Given the amount paid since 1995 and the additional budget for 2002, €9.7 million was written back as of December 31, 2002 and €8.9 million waswritten back the previous year.
Note 11 – Subsidies
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
8/Fdépargne/p134_146/US_BAG 30/07/2003 16:44 Page 135
![Page 92: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/92.jpg)
136
Savings Funds
(EURO MILLIONS) 12.31.2001 Net provisions 12.31.2002and reversals
General risks (CAD+Specific Savings Risks)Livret A - CEP 708.3 (161.0) 547.3Livrets A and B - CNE 417.7 (81.8) 335.8LEP 100.3 (100.3) -Livret Jeunes 5.7 (0.6) 5.1Codevi 74.6 14.4 89.0Home-purchase 821.7 75.5 897.2PEP - CNE 30.5 8.7 39.2
Sub-total 2,158.8 (245.1) 1,913.6Contingent General Risks (1)
Livret A - CEP 260.6 - 260.6Livrets A and B - CNE 173.9 - 173.9LEP 188.8 - 188.8Home-purchase 63.7 - 63.7
Sub-total 687.0 - 687.0
TOTAL 2,845.8 (245.1) 2,600.6
(1) (see II-11 Introductory Note).
A) FUNDS AND RETAINED EARNINGS
(EURO MILLIONS) 12.31.2002 Other Appropriation 12.31.2001movements of 2001
earnings
FundsFund - CEP 1,251.6 (951.0) (4) 929.9 (1) 1,272.7Fund and guarantee fund - CNE 912.3 (592.0) (4) 567.3 (1) 937.0Fund - LEP 843.5 (860.0) (4) 582.2 (1) 1,121.3Fund - Livret Jeunes 49.6 11.9 (1) 37.7Home-building 0.2 0.2FRFL 2,428.9 (646.9) (4) 175.5 2,900.3FREL 80.1 - 3.6 76.5Guarantee fund - SDR 0.5 (0.1) 0.2 0.4Sub-total A 5,566.7 (3,050.0) 2,270.6 6,346.1Retained earningsLivrets A and B - CNE 2.2 - - 2.2Codevi 104.2 - 41.7 62.5Home-purchase (0.3) 157.0 (4) (157.3) -PEP-CNE 23.6 - 4.5 19.1Sub-total B 129.7 157.0 (111.1) 83.8SDR guarantee deposits (Sub-total C) (2) 12.9 0.4 - 12.5
TOTAL (A + B + C) 5,709.3 (2,892.6) 2,159.5 6,442.4
Eliminations (inter-fund transfers) (243.9) 47.5 (291.4)Other eliminations (0.5) 3.0 (3.5)
TOTAL (3) (244.4) 50.5 (294.9)
GRAND TOTAL 5,464.9 2,210.0 6,147.5
(1) Earnings transferred to the reserve funds correspond to the earnings of the primary Funds (CEP Livret A: €841.8 million; CNE Livrets A and B: €508.5 million; LEP: €531 million; and Livret Jeunes: €10.4 million) and of the reserve funds (CEP: €88.1 million; CNE: €58.8 million; LEP: €51.2 million; and Livret Jeunes: €1.5 million).(2) Including 1% of loans paid to regional development companies from Codevi funds.(3) Corresponds to the restatement of capital gains and losses on loan transfers between funds.(4) State levy of €2.9 billion pursuant to the 2002 Budget and implemented by the May 28, 2002 decree No. 2002-903 (on the FRGCE for €951 million,the FRGCNE for €435 million and on the FRLEP for €860 million) and the December 9, 2002 decree No. 2002-1428 for €647 million on the FRFL, and increase in home-purchase savings by the FRGCNE, in accordance with the April 9, 2002 letter from the Minister of Finance.
Note 13 – Retained Earnings
Note 12 – Fund for General Banking Risks
8/Fdépargne/p134_146/US_BAG 30/07/2003 16:44 Page 136
![Page 93: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/93.jpg)
Caisse des Dépôts Group - Annual Report 2002 137
B) UNAPPROPRIATED EARNINGSTotal earnings amounted to €526.8 million.
Earnings, which are separately identifiable for each of the funds managed, will be appropriated in accordance with applicable regulations:
(EURO MILLIONS) Earnings Funds Retained2002 (1) earnings
Livret A - CEP 256.3 256.3 -Fund - CEP 25.6 25.6 -Livrets A and B - CNE (32.3) (32.3) -Fund - CNE 42.9 42.9 -LEP (18.8) (18.8) -Fund - LEP 43.9 43.9 -Livret Jeunes 6.8 6.8 -Codevi (41.2) - (41.2)Home-purchase 47.6 - 47.6PEP CNE (2.8) - (2.8)Other funds 154.2 154.2 -Sub-total 482.2 478.6 3.6Eliminations (inter-fund transfers) (2) 44.6
TOTAL 526.8
(1) Reserve fund specific to each fund.(2) Corresponds to the restatement of capital gains and losses on loan transfers between funds.
C) RETAINED EARNINGS AS OF JANUARY 1, 2003 BEFORE STATE LEVY AND EXCLUDING THE FGBR
(EURO MILLIONS) 01.01.2003 Appropriation 12.31.2002Total Retained Funds of 2002 Total Retained Funds
earnings earnings earnings
Livret A - CEP 1,533.6 1,533.6 281.9 1,251.6 1,251.6Livrets A and B - CNE 925.1 2.2 922.9 10.6 914.5 2.2 912.3LEP 868.6 868.6 25.1 843.5 843.5Livret Jeunes 56.4 56.4 6.8 49.6 49.6Codevi 63.0 63.0 (41.2) 104.2 104.2Home-purchase 47.3 47.3 47.6 (0.3) (0.3)PEP - CNE 20.8 20.8 (2.8) 23.6 23.6Home-building 0.2 0.2 - 0.2 0.2FRFL 2,580.4 2,580.4 151.5 2,428.9 2,428.9FREL 82.8 82.8 2.7 80.1 80.1SDR guarantee fund 0.5 0.5 0.0 0.5 0.5Sub-total 6,178.6 133.3 6,045.3 482.2 5,696.4 129.7 5,566.7SDR guarantee deposits 12.9 12.9 - 12.9 12.9
TOTAL 6,191.5 133.3 6,058.2 482.2 (1) 5,709.3 129.7 5,579.6
Eliminations (interfund transfers) (200.3) (200.3) 43.6 (243.9) (243.9)Other eliminations 0.5 0.5 1.0 (0.5) (0.5)
TOTAL (2) (199.8) (199.8) 44.6 (244.4) (244.4)
GRAND TOTAL 5,991.7 133.3 5,858.4 526.8 5,464.9 129.7 5,335.2
(1) Total earnings of the Funds before eliminations.(2) Corresponds to capital gains and losses on loan transfers between funds.
The 2003 Budget included an estimate of €2.35 billion for the levy on the reserves of the Savings Funds.
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
8/Fdépargne/p134_146/US_BAG 30/07/2003 16:44 Page 137
![Page 94: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/94.jpg)
138
Savings Funds
A) COMMITMENTS IN RESPECT OF LOANS, GUARANTEES, SECURITIES AND OTHER COMMITMENTSGIVEN OR RECEIVED
(EURO MILLIONS) 12.31.2002 12.31.2001
Commitments given in respect of financing, guarantees and securities 6,748.3 5,659.4Financing commitments (1) 6,709.9 5,178.9Offers of loans 2,709.2 2,161.2
Housing loans 2,709.2 2,161.2Undertakings to provide loans 1,913.8 1,306.1
Housing loans (2) 1,883.8 663.9Other loans (3) 30.0 642.2
Loans granted but not disbursed 2,086.9 1,711.6Housing loans 1,474.1 1,143.5Home-purchase loans 612,8 568,1
Guarantee commitments 38.4 38.4Other guarantees given (4) 38.4 38.4Commitments given in respect of securities – 442.1Securities to be delivered – 442.1Commitments received in respect of financing,guarantees and securities 939.9 1,723.9Guarantee commitments 926.6 943.5Guarantees received from the State (5) 926.6 943.5Commitments received in respect of securities 13.3 780.4Securities to be received 13.3 780.4Other commitments received and given 21.6 44.0Other commitments given 0.3 2.0Real estate sales commitments 0.3 2.0Other commitments received 21.3 42.0Subsidies to be received on PLA loans (6) 21.3 42.0
(1) Most of the loans from the Savings Funds are guaranteed by local authorities in accordance with regulations governing the Savings Funds.(2) Caisse des Dépôts et Consignations refinances financial institutions that issue PLI and PLS loans. It committed to refinance €670 million in PLS loansand €160 million in PLI loans in 2002, as well as €381 million in PLS loans and €143 million in PLI loans in 2001. As of December 31, 2002, the totalunused portion of the lines was €872.4 million, of which €97.2 million in respect of 2001 and €775.2 million in respect of 2002. (3) Caisse des Dépôts et Consignations has committed to refinancing a portion of the new loans by the Alsace Lorraine Regional Savings Bank. This €30 million commitment represents the balance of the refinancing implemented in January 2000 following the centralization reform of the AlsaceMoselle Livret A (see Note 2c).(4) This commitment concerns CFF.(5) The State granted its guarantee for a €416 million loan. Consequently, although this loan is non-performing, no impairment was recorded on theoutstanding balance due. (6) This subsidy relates to PLA loan agreements in the French Overseas Departments that have been signed but for which the corresponding funds havenot yet been released. With each release of funds, the subsidies are allocated to liabilities (see Note 11).
B) COMMITMENTS IN RESPECT OF FOREIGN CURRENCY TRANSACTIONS
(EURO MILLIONS) 12.31.2002 12.31.2001
Forward foreign currency transactionsEuros to be received against foreign currencies to be deliveredEuros to be received - 22.5Foreign currencies to be delivered - 29.0
Note 14 – Off-Balance Sheet Commitments
8/Fdépargne/p134_146/US_BAG 30/07/2003 16:44 Page 138
![Page 95: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/95.jpg)
Caisse des Dépôts Group - Annual Report 2002 139
Interest rate swaps consist of:
• €1,878.1 million of swaps related to loans (down from €1,955 million as of December 31, 2001):
– €231.9 million (2001: €241.4 million) in respect of a swap with CDC IXIS linked to the disposal of variable rate loans;
– €1,240.6 million (2001: €1,271.3 million) in connection with the refinancing of CFF’s PLI loans;
– €389.6 million (2001: €424.7 million) in connection with the refinancing of variable rate loans to regional development companies (SDR);
– €16 million (2001: €17.6 million) in connection with the refinancing of variable rate loans.
• €3,511.5 million (2001: €962.3 million) of securities hedging transactions in the form of asset swaps exclusively.
Counterparties for these asset swaps are banking institutions rated at least AA.
Note 15 – Interest and Similar Income
A) TREASURY AND INTERBANK TRANSACTIONS
(EURO MILLIONS) 12.31.2002 12.31.2001
Revenues from cash advances (1) 49.4 83.6Revenues from securities purchased under collateralized fixed resale agreements (1) 141.3 199.5
TOTAL 190.7 283.1
(1) Securities purchased under collateralized resale agreements and cash balances are remunerated in accordance with market practices.
C) FORWARD FINANCIAL INSTRUMENTS
(EURO MILLIONS) 12.31.2002 12.31.2001Purchase/ Sale/ Purchase/ Sale/Borrowing Loan Borrowing Loan
Futures transactions 5,389.6 5,389.6 2,917.3 2,917.3Over-the-counter markets 5,389.6 5,389.6 2,917.3 2,917.3Interest rate swaps 5,389.6 5,389.6 2,917.3 2,917.3Options 82.0 – 25.2 –Over-the-counter markets 82.0 – 25.2 –Caps 82.0 – 25.2 –
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
8/Fdépargne/p134_146/US_BAG 30/07/2003 16:44 Page 139
![Page 96: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/96.jpg)
140
Savings Funds
B) FINANCING TRANSACTIONS
(EURO MILLIONS) 12.31.2002 12.31.2001
Interest revenues (1) 4,840.0 4,829.0Infrastructure loans 430.4 530.9Housing loans 3,421.0 3,378.3Other loans 988.5 919.8Penalties received on early repayments (2) 17.2 10.3Infrastructure loans 0.5 0.1Housing loans 16.7 10.2Net reversals of subsidies on PLA loans (3) 89.1 80.9Housing loans 89.1 80.9Capital gains or losses (4) 176.3 160.1Housing loans 176.3 160.1Net charge or income on hedging transactions (7.1) (14.0)Housing loans (15.7) (17.8)Other loans 8.5 3.8Provisions net of reversals (7.0) (40.4)Infrastructure loans (0.5) 0.1Housing loanst (5) (6.2) (40.5)Other loans (0.4) -
TOTAL 5,108.4 5,025.9
Infrastructure loans 430.5 531.1Housing loans 3,681.3 3,571.2Other loans 996.6 923.6
(1) Including deferred interest.(2) Early repayment penalties are recognized on a cash basis.(3) After elimination of the PLA-TS subsidy paid by FRGCE to the CEP Livret A Fund.(4) After elimination of residual capital gains and losses on loan transfers between Funds (see Note 13 b), including the amortization of the net premiumson the loans assumed from CGLLS (€140.7 million as of December 31, 2002 and €113.4 million the previous year).(5) Including the reversal of the provisions relating to the premiums on the CGLLS loans (€0.8 million as of December 31, 2002 and €26.7 million the previous year) (see Note 2 b).
C) REVENUES FROM FIXED INCOME SECURITIES
(EURO MILLIONS) 12.31.2002 12.31.2001
Available-for-sale securities 3,427.1 3,680.8Public-sector and similar securities 2,263.5 2,446.4
French government securities 1,418.9 1,470.9Treasury bills 844.6 975.5
Bonds 679.3 727.6Other fixed income securities 520.7 538.5Net income from hedging transactions (36.5) (31.7)Investment securities 1,336.0 1,113.3Public-sector and similar securities 949.0 825.9
French government securities 842.5 656.6Treasury bills 106.5 169.3
Bonds 311.8 231.6Other fixed income securities 75.3 55.8
TOTAL 4,763.1 4,794.1
8/Fdépargne/p134_146/US_BAG 30/07/2003 16:44 Page 140
![Page 97: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/97.jpg)
Caisse des Dépôts Group - Annual Report 2002 141
A) TREASURY AND INTERBANK TRANSACTIONS
(EURO MILLIONS) 2002 2001
Charges relating to current accounts (1) (3.8) (26.6)Charges relating to securities sold under collateralized fixed repurchase agreements (1) (129.1) (202.4)Charges on term borrowings (213.7) (248.5)
Loans from CFF (PLI) (1.9) (1.0)Other loans from CFF (4.0) (4.5)Loans from Caisse des Dépôts - Central Sector (PPU) (4.2) (4.2)Loans from CDC IXIS (PLI) (54.9) (53.4)Loans Livret Bleu (0.8) (1.6)Loans assumed from CGLLS (2) (143.7) (180.3)Advances from Caisse des Dépôts - Central Sector (4.2) (3.5)
TOTAL (346.6) (477.5)
(1) Securities sold under collateralized repurchase agreements and cash balances are remunerated in accordance with market practices.(2) Including net discounts on CGLLS loans (€65.5 million in 2002 and €75.3 million in 2001) and net discounts on CGLLS loans assumed (€58.8 million in 2002 and €58.8 million in 2001).
B) DEPOSITS
(EURO MILLIONS) 2002 2001
Interest paid to depositors (6,878.2) (6,558.5)Livret A - CEP (1,855.2) (1,783.7)Livrets A and B - CNE (1,353.5) (1,286.4)LEP (1,763.9) (1,673.7)Livret Jeunes (39.9) (37.4)Codevi (329.1) (294.2)Home-purchase (836.0) (804.5)PEP (36.3) (42.1)Livret Bleu (664.3) (636.5)Tax withheld at source on deposits (88.5) (72.9)Livret B - CNE (13.9) (10.4)Home-purchase (70.0) (57.3)PEP (4.5) (5.2)
TOTAL (6,966.7) (6,631.4)
These expenses represent:
• Interest paid by the Savings Funds managed by Caisse des Dépôts et Consignations to which is added,
in the case of the Crédit Mutuel Livret Bleu, commission paid to the network.
Interest rates for the various passbook deposits are regulated, and were as follows:
– Livret A: 3% since July 1, 2000;
– Livret B: 2.75% since October 1, 2000;
– LEP: 4.25% since July 1, 2000;
– Livret Jeunes: 4% since October 1, 2000;
– Home-purchase savings:
• Savings plan: rates depend on generation; 3.21% since July 1, 2000;
• Passbook deposits: 2% since July 1, 2000.
– Livret Bleu:
• for individuals: 3.27% before taxes since July 1, 2000;
• for companies: 3.16% before taxes since July 1, 2000.
Interest on PEP accounts, which is set each year for the following year, amounted to 4% in 2001 and 2002.
• Interest on industrial development securities (Titres pour le Développement Industriel, or TDI) issued on Codevi accounts: 4.50% since
July 1, 2000.
Note 16 – Interest and Similar Expenses
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
8/Fdépargne/p134_146/US_BAG 30/07/2003 16:44 Page 141
![Page 98: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/98.jpg)
142
Savings Funds
(EURO MILLIONS) 2002 2001
Equities 172.1 173.8Mutual funds 0.2 19.5Other (0.1) 1.1
TOTAL 172.2 194.4
A) PAYMENTS TO CENTRALIZING NETWORKS
(EURO MILLIONS) 2002 2001
Livret A - CEP (753.9) (725.5)Livrets A and B - CNE (703.8) (666.4)LEP (288.4) (276.0)Livret Jeunes (7.1) (6.7)Home-purchase (1) (228.5) (268.6)PEP (10.0) (10.4)
TOTAL (1,991.6) (1,953.6)
(1) Commissions net of overpayments: €50.2 million in 2001 and €71.4 million in 2002 for the years 1998 to 2000 (see Introductory Note I-2).
B) OTHER COMMISSIONS
(EURO MILLIONS) 2002 2001Revenues Expenses Revenues Expenses
Commissions on loan management 1.3 152.7 1.5 133.4Home-purchase (1) - 152,7 - 133,3Other loans 1.3 - 1.5 0.1
Other commissions (2) - 18.1 - 18.9Sub-total 1.3 170.8 1.5 152.3
NET TOTAL (169.5) (150.8)
(1) Payments to La Poste for managing these loans in accordance with the conditions defined by agreement.(2) Of which, commissions for securities-related custodian services performed by CDC IXIS totaling €14.4 million in 2002 and €15.2 million in 2001. (see Note 21 and 24).
A) NET GAINS AND LOSSES ON THE DISPOSAL OF AVAILABLE-FOR-SALE SECURITIES
(EURO MILLIONS) 2002 2001
Fixed income securities 213.4 507.9Public-sector and similar securities 160.0 436.7
French government securities 132.4 384.1Treasury bills 27.6 52.6
Bonds 40.4 51.7Other fixed income securities 13.0 19.5Variable income securities 395.1 634.0Equities 364.9 463.8Mutual funds 30.1 168.8Other variable income securities 0.1 1.4
TOTAL 608.5 1,141.9
Note 17 – Revenues from Variable Income Securities
Note 18 – Net Commissions
Note 19 – Gains and Losses on Available-for-Sale Securities
8/Fdépargne/p134_146/US_BAG 30/07/2003 16:44 Page 142
![Page 99: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/99.jpg)
Caisse des Dépôts Group - Annual Report 2002 143
B) PROVISIONS AGAINST AVAILABLE-FOR-SALE SECURITIES, NET OF REVERSALS
(EURO MILLIONS) 2002 2001Provisions Reversals Provisions Reversals
Public-sector and similar securities 1.8 59.6 28.4 74.7Bonds and other fixed income securities 69.8 143.7 22.2 202.1Equities and other variable income securities 1,264.3 6.9 256.7 51.7Sub-total 1,335.9 210.2 307.3 328.5
NET TOTAL (1,125.7) 21.2
(EURO MILLIONS) 2002 2001Revenues Expenses Revenues Expenses
Net income from tangible fixed assets 12.6 6.6 9.4 6.4Revenues and expenses 12.5 1.6 8.9 1.3Provisions 0.1 - 0.5 -Depreciation - 5.0 - 5.1
Thirty-year limit on unused Livret A CNE accounts 3.8 - 3.5 -Accrued income - Special CFF fund - - 0.1 -Accrued expenses - Special CFF Fund - 2.3 - 0.6Other 9.7 1.5 2.3 0.7Sub-total 26.1 10.4 15.3 7.7
NET TOTAL 15.7 7.6
(EURO MILLIONS) 2002 2001
Operating expenses billedby Caisse des Dépôts (1) (89.4) (88.4)of which sub-total of direct costs
Payroll expenses (18.7) (18.6)Information systems expenses (11.8) (13.6)Banking services (2) (0.4) (0.2)Other Caisse des Dépôts et Consignations services (44.2) (42.7)
Repayments relating to prior periods 1.2 1.1Other - 0.8
TOTAL (88.3) (86.5)
(1) The Central Sector provides the following services for the Savings Funds:- Banking: cash pooling, cash processing, and intermediation for market transactions;- Administration: various resources made available, notably staff and equipment;
These services are rebilled to the Savings Funds.(2) Expenses related to custody operations have been reclassified under “Other commissions” (see Note 18b and 24).
Note 20 – Other Income and Expenses from Banking Operations
Note 21 – General and Administrative Expenses
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
8/Fdépargne/p134_146/US_BAG 30/07/2003 16:44 Page 143
![Page 100: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/100.jpg)
144
Savings Funds
(EURO MILLIONS) 2002 2001Provisions Reversals Provisions Reversals
Provisions for doubtful receivablesnet of reversals
On loans 53.4 183.6 29.2 51.3Other receivables 10.8 61.0 50.2 -
SUB-TOTAL 64.1 244.6 79.4 51.3
NET TOTAL 180.4 (28.1)
Provisions for risks and chargesnet of reversalsLoans 103.1 69.2 157.1 70.9Home-purchase 38.7 - 32.0 -Litigation - - - 0.1Rebate to public housing organziations (1) - 7.4 - 160.0Hedging instruments 3.0 1.2 2.0 -
SUB-TOTAL 144.8 77.9 191.1 231.0
NET TOTAL (66.9) 39.9
(1) The non-recurring expense as of December 31, 2001 relates to the rebate paid to public housing organizations, which had been provisioned as ofDecember 31, 2000. The balance of the provision, which totaled €7.4 million as of December 31, 2001, was written back in full in 2002. A payment of €4 million was made in 2002 for the balance of the rebate, of which €1.3 million included in the provision.
(EURO MILLIONS) 12.31.2002 12.31.2001Provisions Reversals Provisions Reversals
General risks (CAD + Specific Savings Risks)Livret A - CEP - 161.0 - 159.6Livrets A and B - CNE - 81.8 - 103.9LEP - 100.3 - 143.5Livret Jeunes 1.5 2.1 - 4.3Codevi 14.4 - - 5.0Home-purchase 75.5 79.4 -PEP - CNE 10.2 1.5 2.8 -FREL - 0.2
SUB-TOTAL 101.6 346.7 82.2 416.5
NET 245.1 334.3
Contingent General RisksLivret A - CEP - - 90.4 -Livrets A and B - CNE - - 65.3 -LEP - - - 53.4Home-purchase - - 37.7 -
SUB-TOTAL - - 193.4 53.4
NET - (140.0)
TOTAL 101.6 346.7 275.6 469.9
NET TOTAL 245.1 194.3
Note 22 – Cost of Risk (Net Appropriation to Provisions)
Note 23 – Transfers to the FGBR, Net of Reversals
8/Fdépargne/p134_146/US_BAG 30/07/2003 16:44 Page 144
![Page 101: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/101.jpg)
Caisse des Dépôts Group - Annual Report 2002 145
(EURO MILLIONS) 2001 Changes 2002Audited Proforma
Interest revenues and similar 10,103.1 - 10,103.1Treasury and interbank transactions 283.1 - 283.1Financing transactions 5,025.9 - 5,025.9Revenues from fixed income securities 4,794.1 - 4,794.1Interest expense and similar (7,108.9) - (7,108.9)Treasury and interbank transactions (477.5) - (477.5)Deposits (6,631.4) - (6,631.4)Revenues from variable income securities 194.4 - 194.4Net commissions (2,089.2) 15.2 (2,104.4)Payments to centralizing networks (1,953.6) - (1,953.6)Other commissions (135.6) 15.2(1) (150.8)Gains or losses on trading security transactions (4.3) - (4.3)Foreign currency instruments (4.3) - (4.3)Financial instruments - - -Gains or losses on available-for-sale security transactions 1,163.1 - 1,163.1Available-for-sale securities 1,141.9 - 1,141.9Provision charges net of reversals 21.2 - 21.2Other revenues and expenses from banking transactions 7.6 - 7.6
NET BANKING INCOME 2,265.8 15.2 2,250.6
Operating expenses (101.7) (15.2)(1) (86.5)
GROSS INCOME FROM OPERATIONS 2,164.1 - 2,164.1
Cost of risk (net appropriation to provisions) (148.4) - (148.4)Provision charges net of reversals on non-performing loans (28.1) - (28.1)Provision charges net of reversals on risks and charges 39.9 - 39.9Covered expenses (160.0) - (160.0)Losses or gains on unrecoverable receivables (0.2) - (0.2)
NET INCOME FROM OPERATIONS 2,015.7 - 2,015.7
Contributions to FGBR net of reversals 194.3 - 194.3
NET INCOME 2,210.0 - 2,210.0
(1) Reclassification of custody fees to other commissions for €15.2 million as of December 31, 2001.
Note 24 – Comparison between the Audited Income Statement andthe Restated Proforma Income Statement
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
8/Fdépargne/p134_146/US_BAG 30/07/2003 16:44 Page 145
![Page 102: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/102.jpg)
To the Chief Executive Officer,
In accordance with the assignment entrusted to us, we have audi-
ted the accompanying financial statements of the Savings Funds
centralized by Caisse des Dépôts et Consignations established in
euros for the year ended December 31, 2002.
These financial statements have been approved by you. Our role is
to express an opinion on these financial statements based on our
audit.
We conducted our audit in accordance with the professional stan-
dards applied in France. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and signi-
ficant estimates made by management, as well as evaluating the
overall presentation of the financial statements. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements give a true and fair view of
the results of the Savings Funds centralized by Caisse des Dépôts
et Consignations for the year ended December 31, 2002 as well as
of its assets, liabilities and financial position at that date, in accor-
dance with French accounting regulations and generally accepted
accounting principles.
Paris, March 19, 2003
Auditors’ Report on the Savings Fundscentralized by Caisse des Dépôts et Consignations
146
Savings Funds
The Auditors
PricewaterhouseCoopers Audit Mazars & Guérard
Gérard Hautefeuille Guillaume Potel – Pierre Masieri
8/Fdépargne/p134_146/US_BAG 30/07/2003 16:44 Page 146
![Page 103: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/103.jpg)
Caisse des Dépôts Group - Annual Report 2002 147
Caisse nationale de retraites des agents des collectivités locales(CNRACL)
A) BALANCE SHEET
(EURO THOUSANDS) 12.31.2002 12.31.2001
Loans 40,055 38,610 Available-for-sale securities 99,998 0 Mutual funds 99,998 0 Cash and cash equivalents 67,398 84,005 Current accounts 67,347 84,005 Accrued interest 51 0 Accruals, deferrals and other assets 976,383 876,598
TOTAL ASSETS/LIABILITIES 1,183,834 999,213
Reserves and provisions 15,625 (29,405) Retained earnings and reserves 14,109 (32,454) Provisions 1,516 3,049 Unappropriated earnings (61,035) 46,563 Accruals, deferrals and other liabilities 1,229,244 982,055
B) INCOME STATEMENT
(EURO THOUSANDS) 12.31.2002 12.31.2001
A - Income - Salary deductions and contributions from local authorities 11,196,511 10,634,438
B - Expenses 11,179,320 10,525,878 Allowances and annuities 8,110,490 7,592,293 Social security contributions 2,892,667 2,776,273 Other allowances and miscellaneous 176,163 157,312
C - Gross margin on technical operations (A - B) 17,191 108,560 D - Net financial income from investments 1,067 5,152
Marketable securities 0 0 Money markets 3,422 7,284 Current accounts (2,355) (2,132)
E - Other financial income and expenses 1,498 1,466
F - GROSS MARGIN ON FINANCIAL ACTIVITIES (D + E) 2,565 6,618
G - Operating expenses 74,726 77,689 H - Other income and expenses (4,091) (12,373) I - Provisions net of reversals (1,973) 21,447
K - NET INCOME (C+F-G+H+I) (61,035) 46,563
Retirement Funds
Cai
sse
des
Dép
ôts
Gro
up
Fin
an
cia
l S
tate
me
nts
Co
mp
etiti
ve b
usin
ess
Pub
lic-i
nter
est
mis
sio
nsC
orp
ora
te in
form
atio
n
9/retraite_p147-148/US_BAG 30/07/2003 16:45 Page 147
![Page 104: 1/conso/p45 61/US BAG · and Retirement Funds from the scope of consolidation. Their finan-cial statements are presented separately. 46 Consolidated Financial Statements Notion of](https://reader034.vdocuments.us/reader034/viewer/2022042307/5ed35c10080258622969bb2a/html5/thumbnails/104.jpg)
148
Retirement Funds
B) INCOME STATEMENT
(EURO THOUSANDS) 12.31.2002 12.31.2001
Net annuity revenuesAnnuity revenues 1,682,022 1,697,584Annuity expenses 1,359,362 1,384,916Margin on technical operations 322,660 312,668Net investment incomeNet income from investments
Buildings, long-term equity holdings and advances 963 1,142Loans 559 575Marketable securities 83,812 71,435Money market instruments 0Current accounts (75) (106)Other financial expenses
Gross income on financial activities 85,259 73,046Operating expenses 64,180 63,134Gross operating income 343,739 322,580Other income 3Other expenses 7,882 6,685Operating income 335,860 315,895Amortization and depreciation 333 334Provisions (net of reversals) (12,393) (2,409)Income tax for the year 254 302
NET INCOME 347,666 317,668
Institution de retraite complémentaire des agents non-titulaires de l’Etat et des collectivités publiques (IRCANTEC)
A) BALANCE SHEET
(EURO THOUSANDS) 12.31.2002 12.31.2001
ASSETSFixed assets 14,773 14,773Buildings, land, forests 18,979 18,019Securities advanced to real estate companiesLong-term equity holdings 3,122 3,122Advances 0 162Depreciation and amortization (7,328) (6,995)Loans 14,111 13,907Public and semi-public organizationsPrivate organizations benefiting from a guaranteeOther 14,221 14,019Accrued interest 219 217Provisions (329) (329)Marketable securities 2,541,849 2,158,293French government securitiesBondsEquities 0 64,296Mutual funds 2,541,849 2,106,488Accrued interest 0 0Provisions 0 (12,492)Traded instruments: money market/interbank 0 0Treasury billsNegotiable debt instrumentsAccrued interestCurrent account with Caisse des Dépôts et Consignations 444 7,743Cash accounts 444 7,743Accrued interestAccruals, deferrals and other assets 184,233 159,874
TOTAL ASSETS/LIABILITIES 2,755,410 2,354,125
LIABILITIESReserves and provisions 2,272,021 1,886,793Reserves 1,623,963 1,306,741Provisions 648,058 580,052Unappropriated earnings 347,666 317,668Current account with Caisse des Dépôts et Consignations 1,261 3Cash accounts 1,255 0Accrued interest 6 3Accruals, deferrals and other liabilities 134,462 149,661
TOTAL ASSETS/LIABILITIES 2,755,410 2,354,125
9/retraite_p147-148/US_BAG 30/07/2003 16:45 Page 148