Transcript www.bpifrance.fr

*
Formerly
Investors Presentation
Bpifrance Financement, Bond Issuer
May 2014
2013 figures
* Serving the Future
01.
02.
03.
04.
05.
Overview of Bpifrance
Bpifrance Financement,
Funding Strategy
Bpifrance Financement
Bond Issuer
Activity report for 2013
Bpifrance Financement,
Financials & Risk Management
Appendices
2
Titre de la présentation
16/07/2015
01.
Overview of Bpifrance
3
Bpifrance was created on July 12th, 2013
• Strongest possible ownership in
France
• EPIC BPI-Groupe and
100 %
CDC
ratings considered by Moody’s as
aligned
with those of French
Government (Aa1 (negative)/P1)
(AA+/F1+, Stable Outlook) Fitch
• 20 bn€ equity capital for BPIGroupe SA
100 %
EPIC
BPI-Groupe¹
Direct
guarantee
on bond
issues
50 %
50 %
BPI-Groupe SA²
Other
• Full banking regulation (Basel III)
(private
commercial
banks)
10 %
• Strict
compartmentalization of
financial resources (statutory for
Bpifrance Financement)
90 %
Bpifrance
Financement³
(formerly OSEO SA)
100 %
Bpifrance
Participations
100%
Bpifrance
Investissement
¹ EPIC OSEO renamed EPIC BPI-Groupe, ² BPI-Groupe to be renamed Bpifrance SA, ³OSEO SA renamed Bpifrance Financement
Titre de la présentation
16/07/2015
Asset
Management
4
Bpifrance : Legal Framework & Governance
● Act 2012-1559 (31 December 2012)
● Changes the name of EPIC OSEO to EPIC BPI-Groupe
● Defines the governance of BPI-Groupe SA (to be renamed Bpifrance SA)
● Describes how Bpifrance SA is Bpifrance Financement’s majority shareholder (90%)
● Confers legal continuity to all of Bpifrance Financement’s (ex-OSEO SA) debt bonds and
undertakings and those of its affiliates
● EPIC BPI-Groupe is under the supervision of both the Ministry for the
Economy, Industry and Employment, and the Ministry for Higher
Education and Research. The six members of the EPIC Board are
appointed by the State.
● Bpifrance Financement (ex-OSEO SA) and BPI-Groupe SA are :
● Under the permanent control of a Government Commissioner (with the power to veto some of
the Board of Directors’ decisions)
● Duly supervised by the French Banking Authority (ACPR) and the Financial Markets Authority
(AMF)
5
Titre de la présentation
16/07/2015
Permanence of BPI-Groupe’s Legal Status As A Public Institution
EPIC STATUS
Applicable to BPI-Groupe
Set up by a specific Law or Decree
- Law required for the creation of a new category of EPIC
- Decree for an EPIC belonging to an existing category
The missions and organization of the EPIC BPI-Groupe are defined
under Act 2005-722 dated 29 June 2005, as amended and ratified, and
which referred to (i) the creation of the EPIC and (ii) the transformation
of the National Agency for Research Promotion (ANVAR) from a public
corporation into a limited company. This Act, together with Act 2013529 of 21 June 2013 and Act 2012-1559 of 31 December 2012, confirm
the creation of France’s Public Investment Bank (BPI).
General interest missions defined by law
- With a specific purpose (specialty principle)
- With some public law prerogatives
- To promote and support innovation, particularly technological, and to
contribute to technology transfer;
- To promote the development and financing of small and medium-sized
companies.
Control by public authorities
- Members of the Board of Directors appointed in whole or in part by
public authorities
- Supervision by public authorities
- Control of accounts made by the “Court of Auditors” (“Cour des
Comptes”)
- The 6 members of BPI-Groupe’s Board of Directors are appointed by
the State
- The Government Commissioner has the power to veto some
decisions of the Board of Directors
- The EPIC BPI-Groupe is under the supervision of both the Ministry for
the Economy, Industry and Employment, and the Ministry for Higher
Education and Research.
Implicit but automatic guarantee of the State
- No recovery or judicial liquidation proceedings for an EPIC
- If an EPIC is unable to comply with its obligations, the State is legally
bound to fulfill them
- BPI-Groupe is one of the rare EPICs to be classified as a central
government body or ODAC (Organisme Divers d’Administration
Centrale) like an EPA (Etablissement Public d’Administration), which
means that its debt is consolidated with that of the State (under
Maastricht’s Rules).
- Bpifrance Financement SA benefits, as a subsidiary, from an explicit
guarantee from EPIC BPI-Groupe for its bond issues. And, likewise,
BPI-Groupe benefits from an implicit guarantee from the State.
Transformation or dissolution only possible by law (Act or Decree)
The June 2005 Act was amended in 2010 and 2012 to stipulate the
missions and governance of Bpifrance, and to give specific
empowerment to State representatives being members of the Board.
6
Titre de la présentation
16/07/2015
EPIC BPI-Groupe Ratings
Moody’s : Aa1 (Negative) / P1 –
Fitch : AA+ (Stable) / F1+
Moody’s rationale
EPIC BPI-Groupe (ex-EPIC OSEO) is intrinsically linked to
the French Government
•
High level of government involvement in its business plan
and budget
•
Essential role in the development and implementation of
government policies favoring companies
•
Public establishment with specific legal status
EPIC BPI-Groupe is not subject to liquidation laws thanks
to its legal status of EPIC
Given Bpifrance’s (ex-OSEO) important role in government
policy concerning SMEs, the French State would extend
its support in a timely manner in case of stress at
Bpifrance Financement
“From a credit-risk profile perspective, Moody’s considers CDC and
OSEO* to be intrinsically tied to the French State through their operational
and financial ties with the government. As such, CDC’s deposit and senior
debt ratings and OSEO’s issuer rating derive from the application of a
credit-substitution approach, whereby their ratings are aligned with
those of the French government.
Fitch’s rationale
EPIC BPI Groupe is strongly supported by the French government
-
Its missions are defined by the French government
-
Benefits from a strong administrative, legal and financial oversigth
-
Strong probability of support from the French State, given its legal
status
EPIC BPI-Groupe’s asset and liabilities cannot be liquidited or
transferred to entities other than the French State thanks to its
legal status
Bpifrance is a strategic tool for French economic policy
“The ratings are aligned with those of the French State due to expected
very strong support , in case of need, strong oversight from the state
government and its strategic role in government policy concerning SMEs”
Moody’s rationale on Bpifrance Financement (ex-OSEO) EMTN Program
Fitch’s rationale on Bpifrance Financement (ex-OSEO) EMTN Program
“ The rating reflects the unconditional and irrevocable guarantee from
EPICBPI-Groupe (Aa1, negative/Prime-1) for full and timely payments
under this Program.”
“The bonds issued under these programs benefit from an unconditional
and irrevocable first call guarantee from EPIC BPI-Groupe”
* Now renamed EPIC BPI-Groupe
7
Titre de la présentation
16/07/2015
Progression of Aggregated Balance Sheets of 10.45% (+5.1 bn€)
(Figures audited but not yet approuved by General Shareholders Meeting)
Assets (M€)
Liabilities (M€)
M€
53.9
2013/2012
48.8
2013/2012
53.9
48.8
19.3
+20,6%
21.3
21.3
+0,9%
21.1
16
21.1
4.7
5
2.4
2
-6%
+20%
+20%
5.7
4.9
+7%
10
+180%
2.8
+180%
1
10.7
2012
2013
Cash
Other
2,8Assets**
Equity Participations
Innovation
Guarantee
Financing
Note**: Includes operations of repo of securities portfolios and uncalled capital
16/07/2015
16.5
+28%
12.9
10.7
Titre de la présentation
+16.3%
4.9
14
14
5.7
3.0
3.2
3
2.8
3.7
3
2012
Cash
Other liabilities
Equity
Participations
FGI/FGA
Guarantee
ST/Financial
4.4
2013
3.7
+6,7%
-6,7%
3,2
18,9%
2.8
Other
Assets**
Provisions
4.4
Innovation
MLT Financial Res.
Financing
Equity
8
Prudential Ratios
Bpifrance Consolidated
40.00%
35.00%
18,4
30.00%
14,0
25.00%
20.00%
TIER 1
15.00%
Ratio de
solvabilité
10.00%
17,6
5.00%
0.00%
2012
2013
Solvency Ratio
37,6%
31,38%
Tier 1 Ratio
33,7%
29,12%
2012
2013
Note: Credit risk encompasses all outstanding operations relating to financing, guarantee and innovation projects
Titre de la présentation
16/07/2015
9
02.
Bpifrance
Financement,
Funding Strategy
10
FUNDING STRATEGY
Loans Outstandings to NFC &
Bpifrance financement’s market share
Activity
€m
10,000
€bn
25
2,5
%
20
2
15
1,5
10
1
8,000
6,000
4,000
2,000
5
0
2013 2014 2015 2016 2017 2018
0,5
0
CICE
0
juin-12
déc.-12
juin-13
déc.-13
Development loans
Créditsgranted
aux SNF accordés
parBpifrance
OSEO (Ech.Financement(left-hand
gauche)
Loans
to NFC by
scale)
Investment co-financing
Part OSEOFinancement
dans le total desmarket
crédits share
accordés
en France (Ech.
droite)
Bpifrance
(right-hand
scale)
Caracteristics of extended credits
Funding Stategy
-
-
Medium and long term duration
- Fixed or variable rates
- Partnership with commercial banks
- Same conditions than those of the bank
Regular bond market issues
- Public resources for specific
missions
- Access to LDD resources, to cope
with the absence of deposits
- Diversification with bilateral
borrowings
- Liquidity advance to prevent any
market
disruptionSME Market Services
SME Industry
11
Main Funding Channels
EMTN Program :
EUR 20 bn rated
Aa1(negative) by Moody’s, AA+(stable) by Fitch
Mainly benchmarks but also private
placements
BMTN program
EUR 4 bn
Launched in 2014
CD Program :
EUR 4 bn
Rated P1 by Moody’s and F1 by Fitch
“Unconditional,
irrevocable,
autonomous
and first-demand,
guarantee by
EPIC BPI-Groupe” (*)
(*) Wording of the EMTN Guarantee. The only legally
binding version is the French one, as follows:
“ Garantie autonome à première demande
inconditionnelle et irrévocable de l’EPIC BPI-Groupe” .
CDC and other public institutions
(EIB, KfW, CEB…) :
Long-term partnerships
Access to ECB instruments
12
Titre de la présentation
16/07/2015
General Framework of our Bond Issues
Issuer:
Bpifrance Financement
Guarantor:
BPI-Groupe EPIC
Bloomberg ticker
OSEOFI + Gouv (F2)
Status:
Senior Unsecured
Rating:
Aa1 (negative) by Moody’s and AA+ (stable) by Fitch
Guarantee:
Irrevocable, first-demand, unconditional and
autonomous
Maturity:
TBC
Amount:
Benchmark size
Risk Weighting:
20%, level 2A liquid asset under LCRV2
Permanent dealers:
HSBC (Arranger), BNP Paribas, Crédit Agricole CIB,
Natixis
Legal Framework:
French Law
Listing:
Paris
13
Titre de la présentation
16/07/2015
A Long-Term Oriented, Diversified Refinancing Structure
31/12/2013
Expected
31/12/2014
Equity
8%
11%
15%
Market funding > 1 year
19%
29%
3%
Bilateral loans > 1 year
11%
Savings account deposits loans
(LDD) > 1 year
2%
Commercial ressources
15%
14%
10%
37%
13%
Repo backed by securities > 1 year
12%
ST refinancing (Deposit certificates
& loans < 1 year)
A limited ST refinancing (< 15%, excluding repo)
14
Breakdown by Investor type
(EMTN issues)
28%
Asset Manager
Banks
51%
Central Banks
Insurance
11%
10%
15
Titre de la présentation
16/07/2015
Bpifrance Financement’s Bond Issues under the EMTN Program
Bond Issues
OBL BPIFRANCE FINANCEMENT E3M+10BP ECH 07/02/2016
First issue
Issues Date
Book size
Distribution By Investor Type
07/02/2014
500M€
Benchmark
Banks
Asset Manager
63%
37%
10/09/2013
500 M€
Private Placement
Asset Manager
100%
20/03/2013 1 000 M€
Benchmark
Banks
Asset Manager
Banks
Insurance
Asset Manager
47%
42%
5%
5%
1%
First issue
22/05/2012
900 M€
Benchmark
Second issue
Third issue
05/07/2012
25/02/2013
250 M€
200 M€
Retap
Private Placement
Fourth issue
13/02/2014
400M€
Retap
Insurance
Asset Manager
Banks
Central Banks
Central Banks
Banks
Asset Manager
Insurance
62%
33%
5%
100%
100%
63%
32%
5%
Insurance
Banks
Central Banks
Asset Manager
Asset Manager
78%
12%
4%
4%
2%
Insurance
Central Banks
Asset Manager
Insurance
89%
10%
1%
100%
Asset Manager
Insurance
Central Banks
Banks
38%
36%
20%
6%
80%
11%
7%
2%
100%
100%
OBL BPIFRANCE FINANCEMENT E3M+7 BP ECH 17/09/2015 (pp)
First issue
OBL OSEO-SA E3M+10 BP ECH 27/03/2015
First issue
OBL OSEO-SA 2,00% ECH 25/07/2017
OBL OSEO-SA 2,375% ECH 25/04/2022
First issue
05/09/2012 1 250 M€
Benchmark
16/09/2011 1 000 M€
Benchmark
OBL OSEO-SA 3,125% ECH 26/09/2023
First issue
Second issue
OBL BPIFF 2,50% ECH 25/05/2024
First issue
04/11/2011
200 M€
Private Placement
03/12/2013
800 M€
Benchmark
06/02/2013
750 M€
Benchmark
04/03/2013
05/03/2013
300 M€
125 M€
Private Placement
Private Placement
Insurance
Asset Manager
Banks
Central Banks
Asset Manager
Insurance
15/02/2012
110 M€
Private Placement
Asset Manager
100%
29/10/2013
125 M€
Private Placement
Insurance
100%
05/07/2012
104 M€
Private Placement
Insurance
100%
OBL OSEO-SA 2,75% ECH 25/10/2025
First issue
Second issue
Third issue
OBL OSEO-SA 3,625% ECH 25/04/2026 (pp)
First issue
OBL BPIFF 2,917% ECH 25/10/2027 (pp)
First issue
OBL OSEO-SA E3M+115 BP ECH 27/07/2029 (pp)
First issue
16
Titre de la présentation
16/07/2015
03.
Bpifrance
Financement
Bond Issuer
Activity Report for 2013
17
Business Model
● Our aim is to finance & stimulate small & medium businesses’ growth :
●
Soft loans for innovation : provide financing and expertise to companies with
innovative, technology-based, business-focused projects.
●
Guarantees : risk-sharing in support of bank financing and private equity investments.
●
Co-financing loans : partnership with commercial banks and financial institutions for
business investments and operations.
● An Aa1-rated bond and CD issuer:
●
Tight links with French government at strategic
and operational levels
●
90% held by public establishment EPIC BPIGroupe (formerly EPIC OSEO) and Caisse
des Dépôts et Consignations (CDC)
●
Bonds guaranteed by EPIC BPI-Groupe
● A bank driven by solvability
and liquidity:
● Conservative risk management
● Resilient financial performance
financement
1 972 employees
42 local agencies
Banks
Partnerships with all banks
in the business market
Entrepreneurs
More than 90,000
companies financed
in 2013
18
Titre de la présentation
16/07/2015
An Ongoing Process of Rationalization and Investment by the
French State
● Equity Contributions
€120 m
(CEPME/
SOFARIS)
€300 m
(Crisis)
19921994
1980
€100 m
(BDPME)
1996
€150 m
(OSEO)
2005
€850m
Reserve
Guarantee
Fund(1)
2009
€438 m
(Merger)
€539 m(2)
(OSEO industrie)
2010
€766 m
Bpifrance
2012
2013
(1) : The reserve guarantee fund is a buffer, created to protect shareholders equity from the risks taken on the guarantee activity.
(2) : Of which €365m from the French State
● Ex-ante provisioning against loans to customers on a statistical
basis: €533m as of 31 December 2013
●
●
Written in diminution of results (with Board’s approval)
In accordance with internal guidelines and adjusted on a yearly basis
19
Titre de la présentation
16/07/2015
The mission of Bpifrance Financement is to finance and stimulate
French SMEs’ growth and innovation
Risk Sharing & Partnership with Commercial Banks
Public allocations
Co-Financing
Guarantee
 Loans
 Risk sharing
 Pari-passu with banks
 + Specific unsecured loans1
Bpifrance
€5.0 bn3 loans
4,0€ bn ST financing4
Banks
 Up to 70%
Bpifrance
€3.8 bn risks
Innovation
 Soft Loans2
 Subsidies
 Loans
Bpifrance
~€750 m5
Banks
> €8 bn loans
~33,9006
SMEs financed
~ 60,400
SMEs financed
1. With public guarantee backing
2. Redeemable in case of success
3. Investment Co-financing: €3.7 bn and Development loans: €1,3 bn
~3,100
SMEs financed
4. o.w CICE: €0,8
5. o.w. Innovation Aids: €634 m and Development loans: € 113m
Source: DCG (Bilan du 14/02/2013)
6. Includes PCE, CICE, Short term financing
20
Co-Financing
Activity
Outstandings
Average outstanding1 - €bn
Investment Co-financing and development loans
Annual Commitments - €m
16.2
4,683
4 960
1,197
1 264
2,128
2 412
1,358
1 284
2012
2013
Leasing
Long and Medium-term loan
13.8
2.7
11.1
2.0
7.6
6.5
Development loans
5.1
Short-term financing - Annual Authorisations - €m
2 950
2012
CICE
795
3 250
2013
2012
1.4
1.3
1.1
ST
3.6
2.9
3.3
3.7
2011
2012
2013
Leasing of real property
Equipment Leasing
LMT loans
Development loans
2013
1. Excluding short-term financing
21
Guarantee
Innovation
Activity
Activity
Annual Authorisations - €m
Innovation Aids - Annual Authorisations - €m
3 839
745
182
385
224
635
3,377
67
119
109
122
3,230
328
295
2012
2013
3,569
2012
Classical guarantee
Average
outstanding1
10,6
Régions guarantee
2013
Cash guarantee*
- €bn
AI
FUI
ISI
69
75
92
104
Investments in the Future
Partners financing
Development loans - Annual Commitments - €m
11.2
12
112
35
18
18
2011
2012
2013
1. Including CICE (€57m in 2013 - The Competitiveness and Employment Tax Credit)
Source : DCG (données du CA du 14/02/2014)
2012
Research Tax Credit (CIR) Pre-financing
58
19
2013
Innovation loan
Priming loan
22
Economic Impact
Companies assisted by Bpif.
Non-assisted comparable companies
Significant Impact on the Development of the Companies
financed by Bpifrance
Compounded annual Turnover growth rate
over 3 years after origination year (%)
5.5 4.0
7.2 5.3
6.2
10.3
5.2
4.1
Co-Financing
1.4
1.1 0.3
0.9
0.8
0.1
0.0
+2,1 p.
3.3
3.1
2.7
2.5 0.8
Average difference vs. comparable
companies
Compounded annual Employment growth rate
over 3 years after origination (%)
+2,7 p.
12.5
+ x p.
1.5
0.1
0.1
5.6
2003
2004
2005
6.9
7.2
7.6
5.4
6.1
2007
8.8 6.5
2005
0.8
0.8 0.3
2006
2007
+1,1 p.
4.7 5.0
2006
2.2
2.1
2007
2005
2006
2.8
2.9
1.0
0.6
2007
2008
+1,8 p.
0.2
0.5
-0.1
1.5
2008
Origination
year
2002
1.2
2003
2004
2005
2006
3.0
2.3
0.6
0.2
2008
1.8
0.6
-0.6
-1.9
2009
2007
+2,2 p.
7.8 7.1
-3.1
2008
-0.4
-0.8
Compounded annual Employment growth rate
over 2 years after end of project3 (%)
-0.6
-3.3-4.2
2005
2004
0.3
1.6
Innovation2
2004
2003
3.2
Compounded annual Turnover growth rate
over 2 years after end of project3 (%)
6.0 5.3
2002
1.5
3.4
2004
Origination
year
6.0
Guarantee1
2003
2008
+1,5 p.
4.0
2002
2006
-0.7
-0.8
-0.1
2002
0.6
End of project
year
2004
2005
2006
1. Classical guarantee / 2. Innovation Aids / 3. Assuming by convention three years between the origination year and the end of the project
Source: Direction de l’Evaluation Bpifrance (« Evaluation des actions en financement de bpifrance 2012 »)
2007
-0.6
-0.9
-2.3
2008
2009
23
04.
Bpifrance
Financement,
Financials & Risk
Management
24
Bpifrance Financement : Key Financials
Income Statement
(€ million)
2011
Net banking
Income
Operating
charges1
Cost of risk
2012
Solvability & Liquidity
December
2012
December
2013
2 665 m€
2 712 m€
Basel II ratio
15.03%
12,89%
Core tier 1 ratio
10.48 %
9,22%
- Reserve guarantee fund
888 m€
875 m€
- Ex-ante provision
465 m€3
533 m€4
2013
Shareholders equity1
437
506
481
262
290
297
6
(6bp)
33
(24bp)
40
(25bp)
Equity buffers
Operating
profit2
168
183
144
Basel III Liquidity
ratios2
NET INCOME3
120
130
96
- LCR Estimate
534%
575%
- NSFR Estimate
102%
136%
1 Excl. income taxes
2 Incl. taxes & amortization, before income taxes & minority interests
3 After income taxes and minority interests; before ex-ante provisioning
1 Group share
2 Subject to calculation adjustments
3 Including 98m€ of provision from Innovation and 367m€ from cofinancing
4 Including 129m€ of provision from Innovation and 404m€ from coFinancing
25
Titre de la présentation
16/07/2015
Investment Portfolio : Counterparties Risk Management
Déc 2013
Short-term
P-1
(€ millions)
French govies (OAT)
AFT
Other bonds
Breakdown by rating
Long-term
Aaa
Aa1 - Aa3
A1 - A3
6 031
3 726
455
99
Agencies
30
Covered bonds legal
70
Unlisted
239
Breakdown by portfolio
Guarantee
Financing
funds
127
3 726
422
0
TOTAL
5 904
0
371
294
7
0
105
226
Amount
%
6 031
3 726
793
55,7%
34,4%
7,3%
331
3,05%
12
0
0
20
62
81
0,75%
Eurozone banks
103
0
0
92
11
103
0,95%
French banks
39
232
199
72
271
2,50%
Other banks
7
0
7
0
7
0,06%
0
0,00%
0
Corporates
BMTN
Certificates of Deposit
French banks CD's
TOTAL
92
92
128
187
187
187
128
99
10 304
239
0
4 496
92
187
60
60
6 335
0,8%
1,7%
187
10 830
1,73%
100%
December 2013 - Ratings
2%1%
P-1
Aaa
Aa1 - Aa3
A1 - A3
96%
Unlisted
26
Titre de la présentation
16/07/2015
Liquidity Risk Management
Liquidity Risk
LT Refinancing Requirement
Asset Liability Run-Off
Evolution of liquidity ratio
300%
260%
250%
205%
207%
183%
182% 180%
200%
166%
149%
150%
Limit = 100%
150%
143%
149%
136%
100%
50%
0%
Liquidity ratio to one month
Estim. the ratio of permanent resourvces to 5 years
●
Bpifrance Financement follows a strict liquidity containment policy by line of business. A funding gap
is monitored for financing activities.
●
Nevertheless, the portfolio of guarantee funds is a source of mobilizable liquid assets.
NB : As enforced by its legal status, no cross-financing is possible between Bpifrance Financement and
the equity investment arm of Bpifrance (Bpifrance Participations).
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Contacts
Arnaud CAUDOUX
Chief Financial Officer and Executive Director
[email protected]
Tel: +33 1 41 79 83 07
Jean-Michel ARNOULT
Headquarters
27-31, avenue du Général Leclerc
94 710 Maisons-Alfort Cedex
Website: www.bpifrance.fr
Chief Treasurer, Head of Capital Markets
and Operations Settlement
[email protected]
Tel: +33 1 41 79 89 77
Eric de LA CHAISE
Head of Financial Engineering & Management
To access financial information directly, please go to:
http://www.bpifrance.fr/bpifrance/espace_investisseurs/
regulated_financial_information
[email protected]
Tel: + 33 1 41 79 80 68
Christophe JACQUILLAT
Head of Market Operations
[email protected]
Tel: + 33 1 41 79 87 39
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05.
Appendices
29
Financial sources and uses1 (as of 31 December 2013)
Breakdown by line of business for Bpifrance Financement SA’s individual statements
(€ millions)
ASSETS
Co-Financing
Activity
Guarantee
LIABILITIES
• Customer Credit:
• Portfolio of securities3:
• Fixed assets & Others:
19,576
6 328
825
26,729
• Cash & short-term instruments
• Portfolio of Securities/Deposits:
• Allocations to be received:
95
4,507
163
• MLT financial resources:
• ST financial resources2:
• Commercial resources:
• Equity & Other Liabilities:
• Guarantee allocations:
16,520
5,673
561
3,975
26,729
4,765
4,765
4,765
Innovation
TOTAL
• Liquidity reserve:
• Repayable advance:
457
1,651
2,108
33,602
1 Sources: ALM committee of Bpifrance from December 31st 2013
2 Including REPO on Securities Portfolio
3 95% of French Treasury Bonds (OAT)
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• Intervention allocations:
2,108
2,108
33,602
30
Loan Portfolio : Credit Risk Management
Losses’ Frequency
Prudential model  Economic vision
Bpifrance Financement
Financial prudential resources
Bpifrance Financement
The Fair value of guarantee funds
Economic capital
Expected
Unexpected
Loss (EL)
Loss (UL)
For innovation and guarantee-related activities, the fair value of
guarantee funds (the IFRS fair value of such funds)
corresponds to the surplus coverage applied beyond the
Expected Losses (EL) of such funds. These capital resources,
which are not recongnized under any regulation, are indeed
explicitly subordinated to equity funds.
Recourse of
state
Innovation Guarantee Cofinant
Losses
The collective excess provision of the
Commercial
Ex-ante
Shareholders
margin
Prov.
Equity
FdG
FdG – Fair Value
financing activity (ex ante provision)
This equity buffer plays the same role for financing activity, as
the fair value does for innovation and guarantee-related
operations
Shareholde
rs
*
Tier 1 (only Common Equity Tier 1)
Equity
FdG – Fair Value
FdG
Shareholders
Equity
Exposure by product
The breakdown of exposures by
product and by sector is diversified
both in terms of exposure and
number of counterparties
As at Dec. 2013
FCT
20%
Dvlpt loans
6%
CBM
9%
CBI-CBE
21%
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Exposure by activity
As at Dec. 2013
PLMT
44%
Other
16%
Touris
m&
Health
12%
Trade
18%
Industr
y&
Transp
ort
42%
PW &
CE
12%
31
Guiding Principles for Equity Investments
Bpifrance participation & Bpifrance investissement
Targeted Sectors and Companies
▪ Investment in all sectors except
▪ Minority Investments
▪ Patient investments (average
horizon of up to 8 - 10 years)
Prudent
Investors
▪ Search for profitable operations
General Interest
Long Term
Socially
Responsible
(positive return expected on
Bpifrance’s equity capital)
▪ General-interest criteria
(employment, competitiveness
and innovation) taken into account
in the decision-making process
▪ No stakes in high-leveraged
deals or transactions
infrastructure, property and real estate,
banking and finance
▪ Focus on :
– Growth sectors, particularly
biotechnology, digital technology and
energetic and ecological transition.
– Build-up operations
▪ From small (SME size) to large caps.
▪ Limited stakes in funds involving company
restructuring processes
Systematic Partnership with Private
Investors
▪ Systematic search for joint investments with
private investors (both as a LP and as a GP)
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Guiding Principles for Loan Activity
Bpifrance Financement
Targeted Sectors and Companies
 Co-financing loans
• A bank driven by
solvability and
liquidity
• General Interest
• Socially
Responsible
• Conservative risk
management
 Guarantees
 Soft loans for innovation
 Patient financing (including
extensive maturity range and
quasi-equity products)
 Search for profitable
operations (same final terms
as other banks)
 Loans to customers, ex-ante
provisioning and risk hedging,
by proprietary guarantee funds
 Loans extended to all sectors
 Focus on:
 Growth sectors, particularly on
biotechnology, digital technology and
energetic and ecological transition
 Innovative companies
 From small (SME size) to mid caps
Systematic Partnership with
Commercial Banks
 Systematic search for joint financing
with commercial lenders (for every
maturity)
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Overview of the Equity Investments Division
Equity Investment
Bpifrance Participations (LP) / Bpifrance Investissement (GP)
Direct Stakes
Holdings through Investment Funds
Third-party Asset
Management
Mid-Caps / LC
€12 bn*
in direct stakes and via 3
direct funds
Fund of Funds
Innovation
€0,6 bn* via 7 direct funds
€1,3 bn* via 11 funds and a
pool of « affiliated » funds
€0,6 bn** via 1 fund
€0,2 bn* via 2 funds
€0,2 bn** managed under the
« Investing in the Future »
Programme via 3 funds
AEM2, Mode et finance2,
Bois 2, OC+A2, FDEN
Averroès Finance III
Large Ventures, FBIMR
SMEs
Funds Raised in 2014
Mid-Caps 2020
*By end of 2013
** Funds size of the Investing in the Future Programme
34
Growing Companies Shouldering
(Annual Granted Financing)
Standard Loans
Development Loans
8
Cash Advances
6.7
7
CICE
6.0
Guarantee*
6
5.0
37%
4.9
5
Innovation Aids
4.6
Development loans
4.0
25%
33%
4
Equity Bpifrance
20%
PIA Equity
3
2.1
2
75%
63%
80%
1.5
67%
1
18%
1.1
0.7
19%
15%
85%
81%
94%
2013
2017
2013
6%
82%
0
2013
2017
MLT Financing
2013
ST Financing
* Including internal guarantee
Source: Bilan 2013 du 22/01/2013
Titre de la présentation
2017
2013
2017
Guarantee
Innovation
2017
Investment
35
Disclaimer
This presentation has been prepared and is available on the web site of Bpifrance Financement. This presentation does not constitute an offer or
invitation by or on behalf of Bpifrance Financement to subscribe or purchase any notes issued or to be issued by Bpifrance Financement.
This presentation is not intended to provide any valuation of the financial situation of Bpifrance Financement nor any valuation of the notes issued or
to be issued by Bpifrance Financement and should not be considered as a recommendation to purchase any notes issued or to be issued by
Bpifrance Financement. Any projection, forecast, estimate or other ‘forward-looking’ statement in this document only illustrates hypothetical
performance under specified assumptions of events and/or conditions, which may include (but are not limited to) prepayment expectations, interest
rates, collateral and volatility. Such projections, forecasts, estimates or other ‘forward-looking’ statements are not reliable indicators of future
performance.
Any person having read this presentation shall independently judge of the relevance of the information contained herein; shall make its own
independent assessment of Bpifrance Financement and determine whether to participate in any potential transaction; and shall consult its own
advisors as to legal, tax or other aspects, as deemed necessary. The French “Autorité des Marchés Financiers” granted its visa under number 13-256
dated June 3rd, 2013 with respect to a base prospectus (the “Base Prospectus”). You are invited to report to the Base Prospectus as supplemented
by the supplements to the base prospectus before taking any decision with respect to the implementation of any potential transaction.
This presentation should not be reproduced, distributed or transmitted to any third party nor published in whole or in part, including by e-mail, on the
Internet, intranet or otherwise.
In some countries, the publication of this presentation and the offer or sale of notes issued or to be issued by Bpifrance Financement may be subject
to legal restrictions and/or regulations. In particular, this document and the information contained herein do not constitute an offer of securities for sale
in the United States and are not for publication or distribution, directly or indirectly, in the United States (within the meaning of Regulations under the
United States Securities Act of 1933, as amended, i.e. the “Securities Act”). No offer or sale of securities in the United States or to US persons may
take place, except pursuant to an exemption from the registration requirements of the Securities Act. The Issuer invites those reading this presentation
to inform themselves and comply with such restrictions and/or regulations.
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