Financier couv+4e CDD

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Caisse des Dépôts group 2Consolidated balance sheet and income statement

Central Sector 66Balance sheet and income statement

Savings funds centralized by Caisse des Dépôts 98Balance sheet and income statement

Labor, environmental and sustainabledevelopment information 143

FINANCIALSTATEMENTS 2004

Foreword

The 2004 financial statements include the audited consolidated financial statements of Caisse des Dépôts group, the audited financial statements ofCaisse des Dépôts’ Central Sector, presented in accordance with French banking regulations, and the audited financial statements of the savings fundscentralized by Caisse des Dépôts.

The financial statements of financial subsidiaries and other group units and institutions managed by Caisse des Dépôts are not appended.

2 /// Annual Report 2004 Caisse des Dépôts

CONSOLIDATED FINANCIAL STATEMENTS

Notion of group

The activities of Caisse des Dépôts derive from its original mis-sion as the legal depository for private funds that the French leg-islature wanted to safeguard by ensuring that they weremanaged in a way guaranteeing their protection.

The management of these funds, which are used to financepublic-interest investments and support local development inFrance, also led Caisse des Dépôts to become a major player infinancial markets, which it does today through specialized sub-sidiaries subject to market conditions.

This entity forms a public and decentralized group, carrying outits business in France and internationally, specialized in financialactivities and services governed by public fiduciary obligationsor exercised freely in the competitive sector:

Public-interest missions

• management of passbook savings accounts and financing forpublic housing;

• fiduciary management of major public retirement programsfrom its decentralized offices in Angers and Bordeaux;

• regulated banking and financial activities;

• support for local development, urban policy, job creation andsmall and medium-sized businesses.

Competitive businesses

• finance activities through Caisse Nationale des Caissesd’Epargne, the holding company providing strategic guidancefor the following activities:(1) investment banking activities, with the entities belonging toIxis CIB (capital markets and financing), IAM group (asset man-agement) and IIS (securities services);((2) commercial banking activities, with the entities of CFFgroup, Sanpaolo and the specialized insurance sub-sidiaries (Ecureuil vie, Ecureuil IARD);

• life insurance with CNP Assurances;

• services and engineering for local and regional developmentthrough C3D’s subsidiaries;

• real estate activities, mainly through the SNI and Icade groups;

• private equity organized around CDC Entreprises.

Highlights of the year

2004 was dominated by the Restructuring of the partnership between Caisse des Dépôts and Caisse d’Epargne Group onJune 30. Under the terms of this agreement, Caisse des Dépôtscontributed its ownership interest in its investment bank and assetmanager CDC Ixis to Caisse Nationale des Caisses d’Epargne(CNCE). Through its 35% equity interest in the capital of CNCE,Caisse des Dépôts becomes the strategic shareholder of thenewly created universal bank.

The Restructuring of the partnership with CNCE also resulted inasset transfers to Caisse des Dépôts and its direct subsidiaries.

In particular, it acquired the unlisted private equity assets of CDC Ixis through CDC Entreprises, which enabled the creationof a private equity division offering a comprehensive range ofservices.

In 2004, Caisse des Dépôts became the sole shareholder ofSociété nationale immobilière, thereby strengthening its com-petitive real estate division that also includes the Icade group.

Significant decisions were taken in the areas of the public-interest missions, ensuring their sustained development for theyears ahead. Thus two financing programs were launchedthrough the Savings Funds Division: a €4 billion loan packageaimed at financing major national infrastructure programs and a€2 billion subsidized loan program designed to finance the renovation of an additional 100,000 low-income housing unitsover five years. Urban renewal and local government infrastruc-ture projects were also targeted, with a three-fold increase incommitments made.

Finally, Caisse des Dépôts has reaffirmed its commitment toserving as a long-term strategic investor in French companiesthrough its ownership interests in leading, listed French compa-nies and its support for their development strategies. To thatend, Caisse des Dépôts created an independent AdvisoryCommittee last year. The committee is charged with establish-ing a corporate governance reference framework for the com-panies in which Caisse des Dépôts owns shares. It hasprepared a voting guide for shareholders’ meetings and aCaisse des Dépôts directors’ code.

Presentation of financial statements

For purposes of accounting and financial presentation, Caissedes Dépôts group’s activities are divided according to their two principal missions:

• the fiduciary management of the funds entrusted to Caissedes Dépôts according to the rules defining the nature of theservices provided and the related financial conditions. Thesefunds are managed individually and include, in particular, thesavings funds centralized with Caisse des Dépôts and themanagement of public retirement funds;

• the direct activity performed by the Central Sector – Caisse desDépôts’ financial and administrative entity, managed sepa-rately from the operations under mandate – and by affiliatedgroups, notably C3D, SNI, CNP Assurances and CNCE, inFrance and internationally. This activity alone is considered toconstitute a group for the purpose of preparing consolidatedfinancial statements drawn up in accordance with accountingstandards applicable to financial institutions. The consolidatingentity is the Central Sector and, depending on the level of con-trol, subsidiaries are consolidated under the full or proportionalmethod, or accounted for by the equity method.

This distinction is evidenced by the exclusion of the savingsfunds and retirement funds from the scope of consolidation.Their financial statements are presented separately.

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Audit of the financial statements

With effect from the 2004 fiscal year, Caisse des Dépôts com-plies with the following provisions of article 30 of the March 1,1984 Law No. 84-148, as amended by article 110 of theDecember 30, 2004 Law No. 2004-1484.

“French governmental public-sector institutions, whether theyare subject to public-sector accounting regulations or not, mustappoint at least two independent auditors and two alternateauditors when they prepare consolidated financial statements in accordance with article 13 of the January 3, 1985 Law No. 85-11 relating to the consolidated financial statements ofcertain commercial and public-sector companies.”

“Each year, Caisse des dépôts et consignations presents itscompany and consolidated financial statements, audited by two independent auditors, to the Finance Committees of theNational Assembly and the Senate. Acting on the recommendationof its Chairman, the Supervisory Board of Caisse des dépôts etconsignations appoints the independent auditors and their alternates.”



Pro forma (Euro millions) Notes 12.31.2004 12.31.2003 12.31.2003

ASSETSInterbank and similar transactions 30,928 28,456 129 022

Cash, central banks and post office banks 5 4 4,317

Public-sector securities and similar 3 18,465 17,930 27,196

Advances and loans to financial institutions 1 12,458 10,522 97,509

Customer transactions 2,750 16,676 52,249

Overdrafts 2 666 722 1,882

Commercial loans 2 13

Other loans to customers, lease financing and similar agreements 2 2,084 15,954 50,354

Bonds, equities, other fixed and variable income securities 60,513 42,714 94,443

Bonds and other fixed income securities 3 46,816 30,056 72,295

Equities and other variable income securities 3 13,697 12,658 22,148

Investments of insurance companies 4 73,938 68,134 68,936Long-term-equity holdings, shares in related undertakings, other long-term investments 6,657 6,305 4,467

Long-term equity holdings 5 2,260 2,323 3,188

Investments accounted for by the equity method 6 4,397 3,982 1,279

Tangible and intangible fixed assets 7 6,876 4,667 5,296

Goodwill 8 390 411 731

Accruals, deferrals and other assets 9 5,775 5,561 24,362

TOTAL 187,827 172,924 379,506

LIABILITIESInterbank and similar transactions 27,715 24,407 120,173

Central banks and post office banks 14 46 47

Advances and loans from financial institutions 10 27,701 24,361 120,126

Customer transactions 47,901 46,587 68,819

Customer deposits 11 28,577 26,457 28,572

Other customer advances and loans 11 19,324 20,130 40,247

Debt securities 3,563 1,486 52,663

Interbank and negotiable debt securities 12 3,327 1,284 30,712

Bonds and similar debt securities 12 236 202 21,951

Technical reserves of insurance companies 13 71,402 66,090 66,559

Accruals, deferrals and other liabilities 14 18,444 17,379 52,779

Goodwill on acquisitions 8 16 23 11

Provisions for risks and charges 15 750 562 976

Subordinated debt 12 1,168 712 2,034

Fund for General Banking Risks (FGBR) 16 610 610 795

Minority interests (excluding FGBR) 16 1,533 1,361 1,157

Group share of retained earnings (excluding FGBR) 16 14,725 13,707 13,540

Consolidated and other reserves 12,813 11,739 11,959

Income for the year 1,912 1,968 1,581

TOTAL 187,827 172,924 379,506

Consolidated balance sheet

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Consolidated off-balancesheet commitments

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003

Financing, guarantee and securities commitments given

Financing commitments

To financial institutions 137 15 6,136

To customers 26,441 1,742 19,884

Guarantees

To financial institutions 1,196 1,159 14,660

To customers 3,585 5,517 13,345

Securities transactions

Securities to be delivered 5 1,360

Commitments given by insurance companies 227 176 1,546

Financing, guarantee and securities commitments received


From financial institutions 12,552 11,472 10,526

Guarantees

From financial institutions 2,772 4,805 3,267

From customers 1,330 1,446 10,058

Securities transactions

Securities to be received 827 305 4,229

Commitments received by insurance companies 2,059 1,667 1,767

Other commitments

Other commitments given 725 1,110 21,655

Other commitments received 242 356 6,391



Pro forma (Euro millions) Notes 12.31.2004 12.31.2003 12.31.2003Interest and similar revenues 6,604 6,398 10,042

Treasury and interbank transactions 20 11,590 1,988 3,351

Customer transactions 21 1,302 1,029 1,796


Other interest and similar revenues 1,738 1,433 2,214

Interest and similar expenses (6,003) (6,122) (9,674)

Treasury and interbank transactions 20 (2,170) (2,588) (4,221)

Customer transactions 21 (943) (710) (949)

Bonds and other fixed income securities 22 (1,737) (1,145) (2,328)

Other interest and similar expenses (1,153) (1,679) (2,176)

Revenues from variable income securities 23 448 405 427

Commissions (revenues) 24 584 441 924

Commissions (expenses) 24 (153) (164) (252)Gains or losses on trading transactions 25 929 598 1,274Gains or losses on available-for-sale security transactions and similar 26 341 869 743

Other net operating banking revenues and expenses 27 394 363 279

Gross margin on insurance activities 28 808 749 802

Net income from other activities 29 1,774 1,699 1,699

NET BANKING INCOME 5,726 5,236 6,264

Operating expenses (3,186) (2,842) (3,475)

Payroll expenses 30 (2,245) (1,976) (2,397)

Other administrative expenses (1,442) (1,335) (1,515)

Rebillings 501 469 437

Net amortization, depreciation and provision charges 31 (237) (243) (277)

GROSS INCOME FROM OPERATIONS 2,303 2,151 2,512

Cost of risk 32 (193) (96) (208)

NET INCOME FROM OPERATIONS 2,110 2,055 2,304Net income from investments accountedfor by the equity method 6 271 185 53

Gains or losses on fixed assets 33 568 699 105

RECURRING INCOME BEFORE INCOME TAX 2,949 2,939 2,462

Net non-recurring income (expenses) (101) (99) 1

Income taxes 34 (686) (624) (591)

Net amortization of goodwill on acquisitions (41) (56) (65)

Net movement in FGBR (43) (86) (123)

Minority interests (166) (106) (103)

NET INCOME 1,912 1,968 1,581

Consolidated income statement

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Highlights

1 – Caisse des Dépôts and Caisse d’Epargne Group signpartnership restructuring agreement

In accordance with their October 1, 2003 memorandum ofagreement, Caisse des Dépôts and Caisse d’Epargne Groupsignificantly restructured their partnership on a new and sustain-able basis. Under the agreement signed May 27, 2004, Caissedes Dépôts contributed its 50.1% equity interest in EULIA and its43.55% stake in its investment banking and asset managementsubsidiary CDC Ixis to CNCE. These contributions make Caissed’Epargne Group a universal bank, with Caisse des Dépôts as itsstrategic partner through a 35% equity interest (corresponding toa 40.214% effective financial interest) in CNCE, alongside theCaisses d’Epargne. The arrangement includes a shareholders’agreement securing the partnership between the two groups,which pledge to maintain their relative ownership interests inCNCE constant until any potential initial public offering. Theagreement clarifies their respective roles within the new entity:

• CNCE, which is 65%-owned by the Caisses d’Epargne and35% by Caisse des Dépôts, is responsible for steering the retailbanking businesses and the investment banking interests heldmainly by CDC Ixis;

• Caisse des Dépôts has strengthened its roles as a strategicshareholder of CNCE and as a long-term investor by takingdirect control of CDC Ixis’s proprietary portfolios (listed shares,private equity, real estate assets), valued at a total of €3.4 billion.

The transaction’s financial structuring resulted in a €3.3 billionprivate placement by the 29 regional savings banks (Caissesd’Epargne) in mainland France of cooperative investment certifi-cates, corresponding to non-voting preferred shares, withCNCE. Following the issue of these certificates, CNCE held a20% stake in the regional savings banks. Thus CNCE, directly,and Caisse des Dépôts, through its ownership interest in CNCE,have an interest in the business of the regional savings banks,which currently account for more than 65% of the earnings ofthe Caisse d’Epargne Group.

The partnership restructuring transactions resulted in a €405 million net capital gain, which was paid to the FrenchState during the second half of the year as an interim dividend.

During the first half of 2004, under the terms of the partnershiprestructuring, Caisse des Dépôts acquired from CDC Ixis itslisted equities portfolio for €2.1 billion and its 49% equity inter-est in Sogeposte.

In the second half of 2004, Caisse des Dépôts — through itssubsidiary CDC Entreprises, whose capital was increased by€800 million — finalized the acquisition of the private equityassets and a 65% controlling interest in CDC Entreprises CapitalInvestissement (formerly CDC Ixis Private Equity), with the bal-ance being held by CNCE. Caisse des Dépôts also acquiredfrom CDC Ixis its ownership interests in the real estate compa-nies Foncière des Pimonts (sold on to Icade at the year end),Logistis and AIH BV.

2 – Acquisition of Société nationale immobilière

In the first half of 2004, Caisse des Dépôts purchased from theFrench State an additional 74% interest in Société nationaleimmobilière (SNI), thereby bringing its total ownership interest to99.97%. SNI manages real estate assets held for its ownaccount and for third parties.

This €519 million investment is the subject of an earn-outclause, under which Caisse des Dépôts could pay a maximumadditional amount of €58.8 million based on indicators for theperiod from 2004 to 2007. At end-2004, the additional purchaseprice to be paid totaled €7.4 million.

The SNI group was consolidated into Caisse des Dépôts effective June 30, 2004.

3 – Taxation

Caisse des Dépôts has recognized the impact of the Mariniamendment to the revised 2004 budget, which calls for graduallyreducing the capital gains tax on long-term equity holdings.

Information on income taxes is provided in Note 34.

Accounting principles used in preparing the consolidatedfinancial statements of Caisse des Dépôts group

The consolidated financial statements have been prepared inaccordance with the provisions of CRC (the French AccountingRegulations Committee) Standard 99-07 regarding the consoli-dation rules applicable to companies subject to CRBF regula-tions (the French Banking and Financial Regulations Committee).

The presentation of the financial statements complies with theprovisions of CRC Standard 2000-04 regarding the consolidationrules applicable to companies subject to CRBF regulations.

Notes to the consolidated financial statements



Principal policies for accounting and presentation of the consolidated financialstatements

Comparability of the financial statements

The partnership Restructuring transactions changed signifi-cantly the consolidation scope as of June 30, 2004. The mainimpact concerned EULIA: CDC Ixis is now consolidated usingthe equity method via the holding in CNCE, whereas previouslyit was consolidated proportionally.

These changes warrant the presentation of pro forma financialstatements for 2003, incorporating the changes in consolidationscope and methods necessitated by the partnership Restructuring.

The principal adjustments between the historical and pro forma2003 financial statements are shown in Note 37.

As a result of this revised presentation, the 2004 consolidatedincome statement has been analyzed by comparison to the proforma 2003 income statement. Balance sheet movements,however, are based on historical published data.

Consolidation principles and policies

1 – Consolidation methods and scope

The consolidated financial statements include the accounts of theCentral Sector of Caisse des Dépôts, the consolidated accountsof the sub-groups and the accounts of subsidiaries, whenevertheir consolidation is material to the consolidated accounts of theentities 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 newlyformed or acquired companies for which strong growth isexpected, are also consolidated.

Full consolidationUndertakings over which the group exercises exclusive controlare fully consolidated.

Exclusive control is defined as the ability of an undertaking todirect the financial and operational policies of another undertak-ing with a view to gaining economic benefits from its activities.

It results from the ownership of more than one half of the votingrights of an undertaking, or from the appointment for two suc-cessive years of more than one half of the members of the Boardof Directors or equivalent, or from the power to exert a dominantinfluence by virtue of company by-laws or agreements.

Proportional consolidationCompanies over which the group exercises joint control are proportionally consolidated.

Joint control is defined as sharing of the control of an undertak-ing jointly run by a limited number of partners or shareholders,such that the financial and operating policies result from theiragreement.

Equity methodUndertakings over which significant influence is exerted areaccounted for under the equity method. Significant influenceresults from the ability to take part in determining the financialand operational policies of an undertaking without exercisingcontrol.

Special purpose entitiesWhen the group or a group company controls an undertaking insubstance, notably by virtue of contractual agreements or provi-sions in company bylaws, the undertaking is consolidated even ifthere is no ownership of shares. The existence of control in sub-stance is assessed using the following criteria, as defined by CRCStandard 99-07: decision-making and management powers inrespect of the daily operations of a special purpose entity or inrespect of its assets; and the ability to obtain the majority or all ofthe economic benefits and exposure to a majority of the risks.

Entities that carry out their activities under a fiduciary relation-ship, where management is carried out on behalf of third partiesand in the interest of the various parties involved, are not consolidated.

The following types of companies are not consolidated: semi-public companies (SEMs and SAIEMs) and public housingcorporations (HLMs), for which access to their assets andprofits is restricted. As regards insurance activities, controlledpooled investment vehicles and transparent companies withproperty rental activities representing policyholder liabilitiesare not consolidated.

The accounts of consolidated entities are generally prepared asof December 31. Companies preparing their accounts morethan three months before or after this date are consolidatedusing accounts drawn up as of December 31.

2 – Changes in the consolidation scope

As of December 31, 2004, the consolidation scope comprised atotal of 1,012 entities, 197 more than the 815 entities consoli-dated one year earlier.

As a result of the partnership Restructuring, the consolidationmethod used for all entities within the EULIA – CDC Ixis consoli-dation scope, with the exception of real estate and private equityentities, changed from the proportional to the equity method. Anet additional 31 entities were consolidated as a result of thepartnership restructuring, including the 29 Caisses d’Epargne etde Prévoyance regional savings banks in which cooperativeinvestment certificates are held.

Excluding changes necessitated by the partnership Restructuring,an additional 166 entities have been consolidated. These aremainly in the C3D group and members of the former EULIA andCDC Ixis divisions now held through the new CNCE group.

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3 – Goodwill and fair value adjustments

Goodwill corresponds to the difference between the cost ofshares in a consolidated undertaking and the group’s equity inthe fair value of the underlying assets, liabilities and off-balancesheet items at the acquisition date.

Fair value adjustments – corresponding to the differencebetween the value of the undertaking’s assets, liabilities and off-balance sheet items retained in consolidation and their bookvalue in the undertaking’s accounts – are amortized, writtendown or written back to income using the rules normally appli-cable to the corresponding items.

Goodwill, which may be positive or negative, is amortizedthrough the income statement over a period that reflects theassumptions made and the objectives set at the time of theacquisition, not to exceed 20 years.

If material unfavorable changes occur affecting the assumptionson which the amortization schedule is based, an exceptionalwrite-down is made and/or the rate of amortization is increased.

4 – Deferred taxes

Deferred taxes are recognized when a temporary difference isidentified between the restated carrying amount and the taxbase of assets and liabilities.

They are calculated using the liability method, whereby deferredtaxes from prior years are adjusted to account for changes in taxrates. The corresponding impact is recognized under deferredtax in the consolidated income statement.

The deferred tax rates applied to French companies were34.93% for the full rate and 15.72% for the reduced rate. In2003, the rates were 35.43% and 20.20%, respectively.

The revised 2004 French budget changed the capital gains taxrate on long-term equity holdings (15% from 2005, 8% in 2006and nil from January 1, 2007) and on portfolio securities (15% infinancial years commencing on or after January 1, 2005).

In order to finance this gradual reduction in the long-term capitalgains tax rate, the amended 2004 budget imposed a non-recurring exit tax.

Information on income taxes is provided in Note 34.

Deferred taxes are calculated separately for each tax entity. Inaccordance with the rule of prudence, deferred tax assets arerecognized only if there is a strong likelihood that they may beset against future tax liabilities.

Certain directly and indirectly held group entities make up a con-solidated tax group.

5 – Foreign currency translation

Balance sheet items and off-balance-sheet commitments of foreign companies are translated at the year-end rates, with theexception of shareholders’ equity, which is maintained at thehistorical rate. Income statements are translated on the basis ofthe average exchange rates during the year. The resulting differ-ences are entered in consolidated reserves under “Translationreserve”.

6 – Intra-group transactions

Intra-group accounts as well as income and expenses resultingfrom transactions within the group are eliminated on consolida-tion when they are material and whenever they relate to fully- or proportionally-consolidated subsidiaries.

Securities issued by group companies are also eliminated fromthe balance sheet if they are not part of the trading portfolio.

7 – Rental and leasing transactions with purchaseoption and lease-financed assets

Rental and leasing transactions are entered in the companyaccounts according to their legal nature.

Under accounting regulations, transactions that are in fact com-parable to credit transactions must be restated in the consoli-dated financial statements in such a way as to recognize theirsubstance.

Rental and leasing transactions with a purchase option aretherefore entered on the consolidated balance sheet with theoutstanding amount determined using the so-called financialmethod. The unrealized reserve, which consists of the differencebetween the reported amortization and the financial amortiza-tion of the invested capital, is recognized in consolidatedreserves net of deferred taxes.

Fixed assets acquired through a lease or similar agreement arerestated for the purpose of consolidation and entered on thebalance sheet as if their acquisition had been financed throughborrowing.

Presentation and accountingpolicies – Banking and financialactivities

1 – Income statement items

Interest and commissions classified as such are recorded on anaccruals basis. Commissions not classified as interest arerecorded on a cash basis.

2 – Foreign-currency-denominated transactions

Foreign-currency-denominated assets, liabilities and off-balance sheet commitments have been translated at theexchange rates in effect on December 31, 2004.

Currency gains and losses from ordinary currency transactionsare recorded in the income statement.

Spot foreign exchange transactions are valued at the spot rate.Forward currency transactions, other than hedging, are valuedat the forward rate of the remaining period. Forward currencytransactions for hedging purposes are valued by symmetry withthe item hedged.

Premiums and discounts related to hedged foreign currencytransactions are taken as income and expenses over the periodremaining until the maturity of these transactions.



3 – Advances and loans to financial institutions and customers

These items include loans, overdrafts and securities purchasedunder collateralized and uncollateralized fixed resale agreements.

LoansLoans are recorded as assets in the balance sheet at repaymentvalue. Accrued interest is recognized as income over the life of the loan.

Loans are classified as non-performing when a recognizedcredit risk arises, in other words once it becomes likely that partor all of the amounts due under the loan agreement will not bereceived, notwithstanding the existence of a guarantee or secu-rity deposit. In any event, non-performing loans include those forwhich payments are more than three months past due (sixmonths for real estate loans and nine months for loans to localgovernments), those where the deterioration of the counter-party’s financial situation creates the risk of non-recovery andthose that are the subject of a legal dispute.

Similarly, once a loan for a given counterparty is classified asnon-performing, all loans to that counterparty are classified asnon-performing under the contagion principle. For groups ofcompanies, the contagion principle is applied selectively.

For accounting purposes, irrecoverable non-performing loansare recognized separately. These include those loans for whichthe counterparty’s solvency is such that after the loans have beenclassified as non-performing for a reasonable amount of time, noreclassification to performing loans is foreseeable; loans forwhich an acceleration clause has been triggered; and someloans classified as non-performing for more than one year, i.e.those presenting irrecoverable characteristics and for which aprovision must be established and those for which a future trans-fer to loss is foreseeable. This assessment must be performedafter taking into account any existing loan guarantees.

Non-performing loans and irrecoverable loans may be reclassi-fied as performing loans when payments have resumed in asteady fashion for the amounts corresponding to the originalcontractual payment schedule and once the counterparty nolonger presents a default risk. They may also be classified asrestructured loans if debt has been rescheduled and followingan observation period.

For loans with recognized credit risk exposure, provisions areestablished to cover all projected losses on loans classified asnon-performing or irrecoverable. A full provision is establishedon all outstanding, accrued and unpaid interest.

Once the loan is deemed to be definitively irrecoverable, a loss is recorded.

Loans restructured at below market rates are broken out sepa-rately, where applicable, in a specific sub-category for perform-ing loans. At the time of the restructuring, the loan is recorded atnominal value less a discount, booked to cost of risk, corre-sponding to the amount of interest forfeited. This interest differ-ential is accounted for in the lending margin over the life of theloan concerned.

Securities purchased under collateralized and uncollateralized fixed resale agreementsThese securities are recorded as assets in the balance sheet onthe line representing the receivable arising from the transaction.The corresponding income is recognized on an accruals basis.Securities received as collateral and subsequently sold arerecorded as liabilities and valued at market value.

4 – Securities and securities transactions

Securities are classified under five accounting categories corre-sponding to the institution’s activities.

Trading securitiesTrading securities include in particular Treasury bills and nego-tiable debt securities. They are expected to be held for periodsnot exceeding six months. They are highly liquid and are markedto market. Changes in market value are recognized in theincome statement.

Available-for-sale securitiesAvailable-for-sale securities comprise securities that are not tobe held until maturity or for trading purposes. They also includetrading securities reclassified after being held for a period ofmore than six months. In this case, the reclassification is madeat market value on the date of the transfer.

Available-for-sale securities are treated according to the FIFOmethod and are valued as follows:

• Bonds and equities: unrealized losses calculated based ontheir year-end closing price are taken to expenses through aprovision for impairment.

• Treasury bills, negotiable debt securities, and interbankinstruments: provisions are made on the basis of the individ-ual situation of the issuer and market indicators.

Any premiums and discounts are written off over the residual lifeof the asset on a yield-to-maturity basis for negotiable debtsecurities and on a straight-line basis for other securities.

Held-to-maturity securitiesThis portfolio comprises fixed income securities that areintended to be held until maturity, and financed with dedicatedlong-term resources or covered through hedging instruments.

Unrealized capital losses resulting from differences between bookand market values are not covered by provisions. However, ifapplicable, default risks are taken into account in determining thevalue of these securities at year-end. The difference between theacquisition price and the redemption value of the securities (pre-mium or discount) is amortized using the yield-to-maturity methodfor negotiable debt securities and the straight-line method forother securities.

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Inflation-indexed French government bonds (OATs)Given the lack of specific regulations applicable to financial insti-tutions, the effect of indexation on the face value of inflation-indexed bonds may be accounted for: when the bond is sold ormatures; or spread over the bond’s remaining life, or recognizedas income or expense for the period.

Effective December 31, 2003, the Central Sector decided torecord as income or expense any gains or losses related to theindexation of the bond’s face value to inflation, by analogy to theaccounting treatment prescribed by article R332-19 of theFrench Insurance Code, as amended by decree No. 2002-1535of December 24, 2002.

The accounting provisions of CRC Standard 2002-03 relative tocredit risk in companies subject to CRBF regulations apply,where appropriate, to credit risk for held-to-maturity securities.

Portfolio securities (TAP)Portfolio securities are investments made on a regular basis withthe aim of realizing a capital gain in the medium term but withoutthe intention of investing on a long-term basis in the develop-ment of the business or taking an active part in the operationalmanagement of the issuing undertaking.

These securities are recorded at the lower of cost or fair value.

Fair value is determined by taking into account the general eco-nomic outlook for the issuer and the remaining period for whichthe securities will be held. For listed companies, fair value is gen-erally represented by the average share price over a period suffi-ciently long to reduce the impact of sharp price fluctuations overthe expected holding period.

Non-consolidated equity securitiesNon-consolidated equity securities are recorded at acquisitioncost.

They are valued on the basis of their fair value, with reference tovarious criteria such as net assets, potential return, and capital-ization of earnings. Provisions are booked to reflect any perma-nent impairment in the fair value of these securities.

Lending and borrowing of securitiesSecurities are valued using the rules applicable to the portfolio of origin.

Borrowed securities are recorded as an asset under tradingsecurities at their market value on the day they were borrowed,and as a liability to recognize the debt towards the lender. Theyare valued on the basis of their market value on the closing date.

Loans and borrowings guaranteed by cash and notes aretreated in the same way as collateralized resale agreements.

Income from these transactions is recognized on an accrualsbasis in the income statement.

Issues indexed on fund performanceThese consist in structured issues, the most often with a zerocoupon, that are indexed on fund performance. The index ishedged by the purchase of units in the fund whose performanceaccrues entirely to the subscribers at maturity.

The overall financial engineering margin on these transactionsis estimated by reference to the market value of the units in thefund and the present value of future cash flows relating tothese issues as well as to future management expenses. Asrequired by applicable regulations, extremely prudent assump-tions are used regarding early redemption when the valuationis based on models.

5 – Forward financial instruments

In application of the strategy defined for the development of itstrading activities and the management of market risks, theCaisse des Dépôts group operates on all organized and over-the-counter markets for interest rate, currency and equity futuresand options, in France as well as abroad. These transactions areentered into as part of specific or general hedging and the spe-cialized management of trading portfolios.

For all of these instruments, whatever the management policypursued, the face value of the futures and options contracts, thevalue of the underlying assets or the exercise price is recordedoff-balance sheet.

The method of accounting for expenses and revenues on theseinstruments depends on the management policy pursued.

The transposition into French Law of European “fair value” and“modernization” directives resulted in the publication of CRCStandards 2004-14, 2004-15, 2004-16, 2004-17, 2004-18 and2004-19. These require disclosure of the fair value (if it can bedetermined through reference to a market value or the applicationof generally accepted models and methods) and information onthe volume and type of instrument for each category of derivativefinancial instrument. This information is provided in Note 18.

Interest rate and currency swaps

Hedging transactions: expenses and revenues resulting fromhedging instruments (taken singly or as a homogeneous group)are recognized symmetrically with the revenues and expensesresulting from the hedged transaction.

• Transactions undertaken within the context of spe-cialized portfolio management: contracts are valued atyear-end at their market value. In accordance with regulations,the market value takes into account an adjustment for defaultrisks and the discounted value of future management costs.The total net mark-to-market gain or loss is recognized in theincome statement.



Other interest rate and currency transactions These transactions relate primarily to futures and options.

• Hedging transactions: expenses or revenues are recognizedin the income statement on a symmetrical basis with the revenues or expenses on the hedged transaction;

• Other transactions: these transactions are marked to mar-ket. Unrealized gains or losses at the closing date are recog-nized in the income statement.

In order to provide a fair value of these instruments, those thatare not highly liquid are also valued by reference to their theo-retical market value.

Complex transactionsComplex transactions include derivatives, which combinerepackaged instruments of various types, characteristics andpricing 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 entryreflecting the substance of the transactions, as if they were a singleinstrument. In the case of totally new products, when not governedby explicit regulation, the accounting approach to recognition ofany gains and losses is based on similar existing products.

The method of accounting for gains and losses depends on themanagement policy pursued:

• Hedging transactions: for reasons of prudence, notably whenmarket liquidity is low, results are recorded on an accruals basis.A provision is made when market value is negative;

• Trading portfolio or transactions for which the result canbe considered as an arrangement fee: the result is recog-nized when the transaction is initiated. A discount is applied totake into account future management expenses and possibledefault risks.

Credit derivativesCredit derivatives are instruments whose purpose is to transferthe credit risk in respect of an asset from one counterparty toanother, generally in exchange for a premium paid at the outset orby installments. In the case of events predefined in the relatedcontract, known as credit events, the seller of the cover is calledupon to bear the cost under the terms defined in the contract.

There are three categories of credit derivatives: credit defaultswaps, total rate of return swaps and credit linked notes. Interms of their characteristics and risks, they may be likened tooptions, interest rate swaps and securities swaps, respectively.

In the absence of a specific accounting text, the accountingapproach for credit derivatives is based on their analogy to exist-ing products with which they can be likened and taking intoaccount the management policy being pursued:

• Hedging transactions: expenses and revenues are recog-nized symmetrically with the revenues and expenses on thehedged transaction;

• Isolated open-position transactions undertaken as partof a long-term holding: the result is booked on an accrualsbasis. A provision is made against unrealized losses;

• Specialized portfolio management transactions: whenmarket liquidity for the derivative is assured, contracts are val-ued at market price with a discount applied to take intoaccount possible default risks and the present value of futuremanagement expenses. Otherwise, contracts are valuedusing the applicable regulations for the underlying transac-tions, which involves valuing them at cost and, where neces-sary, establishing a provision for impairment.

Market valuesWhen the market price of the instruments or the valuationparameters are not officially quoted, alternative valuation meth-ods are used, making reference to one or more of the followingcriteria: price confirmation by brokers or outside counterparties,comparison with actual transactions and research by issuer orinstrument category.

When instruments are valued using models, these integrate theparameters that affect the valuation of the instruments, inparticular the liquidity level of the related markets. Applying aprudent approach, the calculations are adjusted to take accountof the weaknesses of some of these parameters, in particulartheir relevance over a long period.

6 – Tangible and intangible fixed assets

CRC Standard 2002-10 of December 12, 2002 regarding thedepreciation and amortization of assets applies to fiscal yearsbeginning on or after January 1, 2005.

Within the Caisse des Dépôts group, only the C3D group (exclud-ing Compagnie des Alpes) applied the standard in advance, in2004. The impact of this change in accounting method on theretained earnings of the Caisse des Dépôts group is not material.

Other entities within the Caisse des Dépôts group have appliedthe transition measures outlined in article 15 of the standard andcomplemented by the provisions of ruling 2003-F by the CNC(the French National Accounting Board) Urgent Issues TaskForce.

Fixed assets are valued at cost. In the case of buildings, initialfixtures, fittings and installation expenditure may be added tothe cost of acquisition.

Depreciation is calculated using the straight-line method andaccording to the type and quality of the building, over its estimated useful life. Thus, buildings are depreciated over 20 to50 years. Partial renovation work on old buildings is depreciatedover periods of between 15 and 25 years.

Installations, improvements and fittings are generally depreci-ated over ten years.

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Market shares acquired are not amortized. They are, however,periodically subjected to an impairment test based on the valua-tion 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 dis-tributable profits attributable to the portfolio at the time of theacquisition, is amortized for like groups of contracts using aschedule that is updated regularly and reflects the likelihood offuture profits over a reasonable period.

As a general rule, software is written off over three years (maxi-mum of five years).

Forests are subject to provisions for impairment as required. Inthe event of an irreversible loss, a non-recurring impairment lossis recognized for the full amount.

7 – Investment property risks

Caisse des Dépôts owns a large portfolio of rental propertiesheld as long-term investments.

Market values are determined regularly by independent appraisers. A provision is made for any material impairment invalue of these properties, representing the difference betweencarrying value and market value.

8 – Advances and loans from financial institutions and customer deposits

These liabilities include deposits, loans and securities sold undercollateralized and uncollateralized fixed repurchase agreements.

LoansLoans are recorded in the balance sheet at repayment value andaccrued interest is charged to income over the life of the loan.

Securities sold under collateralized fixed repurchase agreementsThe debt is recorded under liabilities. The securities are main-tained in their original portfolio and valued according to the rulesapplicable to that portfolio. The corresponding interest is recog-nized through the income statement as it is accrued.

9 – Debt securitiesDebt securities are reported according to the type of security:interbank and negotiable debt securities (commercial paper,certificates of deposit and medium-term notes), bonds and similar debt securities.

Accrued interest is recorded on the same balance sheet line asthe debt security and is charged to income.

Commissions on the issue of debt securities and any premiumson their issue or redemption are charged to income over the lifeof the securities.

10 – Provisions for risks and charges

This heading includes in particular:

• provisions for country risk, which are determined based on anappraisal of the risk carried by the group in the respectivecountries or on borrowers in those countries; the appraisal cri-teria are generally based on an assessment of the country’seconomic, financial and socio-political situation;

• provisions for sector risks and general provisions to coverlosses whose realization and valuation is uncertain;

• provisions for employee-related commitments correspondingmainly to retirement benefits and expenses related to theestablishment of framework agreements to organize phasedand other early-retirement plans within various group entities;

• provisions for risks and charges not related to banking trans-actions, established in accordance with the terms of CRCStandard 2000-06 regarding the accounting for liabilities.These provisions are intended to cover risks and charges thatare clearly defined but whose amount or timing remainsuncertain. The establishment of these provisions is subject tothe existence of an obligation to a third party at year-end, andthe absence of at least an equivalent consideration from thethird party. This regulation does not cover, in particular, bank-ing transactions, financial instruments and insurance con-tracts in force;

• provisions for default risks established among the real estatedivision’s subsidiaries. They cover the scope of sound com-mitments entered on the balance sheet or as off-balancesheet commitments, for which statistical information is avail-able that makes it possible to assess default probabilities.These provisions are determined by applying multiples seg-mented by rating category and residual term, and weighted byrecovery assumptions in the event of a default. In particular,they cover potential risks on the real etate sector, credit institu-tions, the local and regional public sector and structuredfinancing;

• provisions for major repairs established in accordance withCRC Standard 2002-10 related to asset depreciation, amorti-zation and impairment and whose application methods aredescribed in section 6 above, “Tangible and intangible fixedassets”.



11 – Pension and related commitments

In France, pension liabilities are generally covered by contribu-tions taken as expenses and paid to retirement or insurancefunds, which then handle pension payments, or paid to the gov-ernment in the case of civil servants.

When not covered by insurance contracts, provisions are madefor employee retirement benefits for each category of employeesbased on collective bargaining agreements. These provisions arecalculated using an actuarial method taking into account the ageand seniority of the personnel, the mortality rate and probableremaining service with the group until retirement age and esti-mated future salary levels. This provision is adjusted on eachclosing date based on changes in the actuarial liabilities.

When these commitments are covered by an insurance policy,the annual premiums paid to the insurance company areincluded in expenses for the period.

In countries other than France, there are various compulsoryretirement plans to which employers and employees pay contri-butions. Depending on each case, the corresponding commit-ments are paid to company pension funds or recognized in theindividual accounts of the companies concerned. No adjust-ments are made in this respect in the consolidated financialstatements.

Commitments related to statutory long-service awards orCaisse des Dépôts long-service awards are calculated using thesame method as it is used to determine commitments for retire-ment benefits.

12 – Subordinated debt

This category includes debts whose repayment in the event ofliquidation of the debtor would occur only after other creditorshave been repaid.

Accrued interest payable is recorded in an accruals account andcharged against income.

13 – Fund for General Banking Risks

This fund is constituted to cover operational risks and lossesarising from banking activities and the management of financialassets that are not covered by general or specific provisions.Transfers are made to and from this fund on a regular basis tocover these risks.

14 – Other information

Some of the previous year’s figures have been adjusted from thefigures reported in 2003.

Principal accounting and presentation policies – Insurance business

Accounting policies and valuation methods specific to insuranceactivities have been maintained in the consolidated financialstatements of Caisse des Dépôts.

Caisse des Dépôts group applies CRC Standard 2000-05regarding rules for consolidating companies governed by theInsurance Code.

Constituent items of the consolidated financial statements ofinsurance companies are presented on the lines of the balancesheet, income statement and off-balance sheet that are of thesame nature, with the exception of the following items:

Investments of insurance companiesInsurance company investments include real estate, invest-ments representing unit-linked policies and various otherinvestments.

Real estate investments are shown in the balance sheet atacquisition cost, net of acquisition expenses, but increased toreflect the cost of improvements and certain taxes. Propertiesare depreciated over their estimated useful life. The estimatedvalue of properties is based on reports produced by independ-ent appraisers. A provision is recognized in the event of perma-nent impairment in value.

Investments allocated to unit-linked policies are reassessed atthe year end by reference to variations in related unrealized cap-ital gains or losses. Technical reserves relating to these policiesare similarly reassessed.

Equities and other variable income securities are recorded atcost excluding expenses. A provision for impairment is estab-lished to cover lasting impairment in the value of the securities,determined relative to the estimated recovery value.

Marketable securities and other fixed-income securities arerecorded at cost excluding accrued income. The differencebetween the redemption value of these securities and their cost,excluding accrued income, is allocated on an actuarial basisover the remaining term to maturity. A provision is established inthe event of a default risk on the part of the issuer.

Moreover, when the net book value of the real estate invest-ments and variable income securities exceeds the realizablevalue of these assets, a liquidity risk reserve, which is equal tothe difference between these two amounts, must be estab-lished.

Technical reserves of insurance companiesTechnical reserves correspond to commitments to policyholdersand beneficiaries.

15

Life insuranceFor policies including death cover, technical reserves comprise the share of written premiums not earned in the periodconcerned.

The mathematical reserves relating to premiums on non-unit-linked policies correspond to the difference between the presentvalue of the liabilities of the policyholder and of the insurer.

Life insurance reserves are set aside using a discount rate notexceeding the expected return, cautiously estimated, on theassets representing these reserves.

Liabilities are discounted applying a rate that is at the most equalto the rate of the policy concerned, and using published mortal-ity tables or actual mortality rates if these are more prudent.

An overall reserve is made for the amount of the total futuremanagement expenses of policies not covered by the premiumor management loading.

When remuneration in excess of the minimum guaranteed rate,based on the results of technical and financial management, isdue to the policyholders and has not been distributed to themduring the period, this remuneration is included in the policy-holder surplus reserve.

The reserve for claims payable includes outstanding claims andcapital due at the year-end.

Mathematical reserves in respect of unit-linked policies areassessed on the basis of the assets underlying these policies.

Disability, accident and health insuranceA reserve is taken for incremental risks to cover timing differ-ences between the time when guarantees are acquired by poli-cyholders and when they are financed by insurance premiums.

Reserves for claims are based on the estimated value of fore-seeable expenses net of any recoveries.

Non-life insuranceNon-life insurance technical reserves comprise reserves forunearned premiums (share of premiums issued that correspondto subsequent years) and reserve for claims payable.

Gross margin on insurance activitiesThe gross margin on insurance activities comprises earned pre-miums, the cost of benefits (including changes in technicalreserves) and net investment income.

Principal accounting and presentation policies –Service sector businesses

Accounting policies and valuation methods specific to servicesector businesses have been maintained in the consolidatedfinancial statements of Caisse des Dépôts group.

Constituent items of the financial statements of service compa-nies are presented on the lines of the consolidated balancesheet, income statement and off-balance sheet that are of thesame nature.

One specific line only has been added, entitled “Net incomefrom other activities” as an income statement subtotal. Netincome from other activities comprises mainly sales and otheroperating income, less purchases consumed.



Note 1 – Interbank and similar transactions Advances and loans to financial institutions

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Overdrafts 10,353 8,217 10,595

Current accounts of the savings funds 20 238 238

Overnight accounts and advances 2,871

Securities purchased under collateralized fixed resale agreements 80 80 1,572

Accrued interest 23 13 21

Sight amounts due from financial institutions 10,476 8,548 15,297

Term loans and advances 1,839 1,611 56,532

Securities purchased under uncollateralized fixed resale agreements 8

Securities purchased under collateralized fixed resale agreements 135 318 25,054

Subordinated loans 35 61

Non-performing loans 10 13 14

Provisions (10) (13) (13)


Term loans to financial institutions 1,982 1,974 82,212

ADVANCES AND LOANS TO FINANCIAL INSTITUTIONS 12,458 10,522 97,509

Following the partnership Restructuring, the Central Sector accounted for nearly all the advances and loans to financial institutions.

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Note 2 – Customer transactions (assets)

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Overdrafts 665 716 1,876



Overdrafts 666 722 1,882

Commercial loans 13

Loans to financial sector customers 2 36 1,312

Other cash advances (1) 356 14,290 17,074

Loans for infrastructure projects 337 357 4,078

Loans for housing projects 114 152 11,825

Other loans to customers 1,058 917 4,627

Securities purchased under collateralized fixed resale agreements 9,486

Subordinated loans 51 40 62

Lease financing and similar agreements 74 65 1,140


Provisions (119) (105) (299)


Other loans to customers, lease financing and similar agreements 2,084 15,954 50,354

CUSTOMER TRANSACTIONS (2) 2,750 16,676 52,249

Total at sight 666 722 1,882

Total term loans 2,084 15,954 50,367

(1) Of which, ACOSS for €14.1 billion as of December 31, 2003. Coverage of ACOSS’s requirements was assumed by CADES in the second half of 2004.(2) After the partnership restructuring, the Central Sector accounted for nearly all customer loans.



Note 3 – Transactions on trading, available-for-sale, held-to-maturity and portfolio activities

A) BREAKDOWN BY NATURE AND TYPE OF PORTFOLIO

(Euro millions) 12.31.2004

Available- Held-Trading for-sale to-maturity Portfolio

securities securities securities securities Total

Government securities 4,503 467 4,886 9,856

Treasury bills 3,318 281 3,599

Securities on loan 5,010 5,010

Public-sector securities and similar 12,831 748 4,886 18,465

Bonds 50 1,048 6,666 7,764

Subordinated securities

Securitized debt funds 689 64 753

Negotiable debt securities 36,419 1,407 37,826

Securities on loan 473 473


Equities 1,901 9,391 11,292

Mutual funds 18 2,385 2,403

Securities on loan 2 2

Equities and other variable income securities 18 4,288 9,391 13,697

TOTAL BY TYPE OF PORTFOLIO (1) 12,899 43,192 13,496 9,391 78,978

(1) As of December 31, 2004, most of the portfolios were from the Central Sector. The Central Sector’s equities portfolio includes securities purchased from CDC Ixisas part of the partnership restructuring transaction in the amount of around €2 billion as of December 31, 2004.

The available-for-sale securities portfolio increased significantly relative to the 2003 pro forma figures. This increase resulted mainlyfrom re-investment of the funds used in 2003 to finance the ACOSS deficit (cash advance to customer), which as of December 31,2004 had become the responsibility of CADES.

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Pro forma 12.31.2003 12.31.2003

Available- Held- Available- Held-Trading for-sale to-maturity Portfolio Trading for-sale to-maturity Portfolio

securities securities securities securities Total securities securities securities securities Total

7,822 323 5,686 13,831 9,032 446 5,821 15,299

5 28 33 10,593 79 380 11,052

4,066 4,066 844 1 845

11,893 351 5,686 17,930 20,469 526 6,201 27,196

26 673 6,524 7,223 19,105 4,875 14,912 38,892

2 2 38 74 112

367 19 386 1,089 2,903 43 4,035

20,605 1,313 21,918 1,114 23,497 1,833 26,444

527 527 2,681 9 122 2,812

26 21,647 8,383 30,056 23,989 31,322 16,984 72,295

14 1,773 8,837 10,624 6,969 1,976 9,132 18,077

25 2,007 2,032 1,197 2,851 4,048

2 2 21 2 23

39 3,782 8,837 12,658 8,187 4,829 9,132 22,148

11,958 25,780 14,069 8,837 60,644 52,645 36,677 23,185 9,132 121,639



Note 3 (cont’d)

B) SUPPLEMENTARY INFORMATION


Available- Held-Trading for-sale to-maturity Portfolio

securities securities securities securities Total

Public-sector securities and similar

Gross value (1) 12,830 721 4,725 18,276

Premiums/discounts 16 39 55

Accrued interest 1 11 122 134

Provisions

Net book value 12,831 748 4,886 18,465

Market value of trading and available-for-sale securities 12,830 770

Bonds and other fixed income securities

Gross value (1) 50 38,020 8,341 46,411

Premiums/discounts 50 30 80


Provisions (5) (5)

Net book value 50 38,156 8,610 46,816

Of which, listed securities 50 37,043 8,094 45,187

Market value of trading and available-for-sale securities 50 38,182

Equities and other variable income securities

Gross value 18 4,415 10,864 15,297

Accrued interest 52 52

Provisions (127) (1,525) (1,652)

Net book value 18 4,288 9,391 13,697

Of which, listed securities (2) 18 2,611 8,562 11,191Market value (trading and available-for-sale securities) or fair value (portfolio securities) (2) 18 4,640 10,510 15,168

(1) Gross values shown under “available-for-sale” and “held-to-maturity” securities correspond to redemption value.(2) The fair value of portfolio securities is determined on the basis of rolling averages for listed securities, adjusted where necessary when a specific value appears tobetter reflect the fair value of the securities.

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Pro forma 12.31.2003 12.31.2003

Available- Held- Available- Held-Trading for-sale to-maturity Portfolio Trading for-sale to-maturity Portfolio

securities securities securities securities Total securities securities securities securities Total

11,892 339 5,481 17,712 20,468 503 5,976 26,947

6 53 59 17 66 83

1 6 152 159 1 6 159 166

11,893 351 5,686 17,930 20,469 526 6,201 27,196

11,892 361 20,468 568

26 21,553 8,124 29,703 23,989 31,166 16,703 71,858

34 4 38 85 (10) 75

68 255 323 115 352 467

(8) (8) (44) (61) (105)

26 21,647 8,383 30,056 23,989 31,322 16,984 72,295

26 20,562 7,912 28,500 22,369 28,549 15,549 66,467

26 21,643 23,989 31,921

39 3,893 10,508 14,440 8,187 4,978 11,057 24,222

42 42 36 36

(111) (1,713) (1,824) (149) (1,961) (2,110)

39 3,782 8,837 12,658 8,187 4,829 9,132 22,148

25 1,117 7,226 8,368 7,670 2,413 8,439 18,522

39 2,933 9,736 12,708 8,187 5,195 11,410 24,792



Note 4 – Investments of insurance companies

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Investments to cover unit-linked policies 6,858 5,948 5,962

Other investments

Land and buildings 1,330 1,359 1,361

Investments in related undertakings and long-term equity holdings 19 20 20

Other investments (1) 65,731 60,807 61,593

INVESTMENTS OF INSURANCE COMPANIES 73,938 68,134 68,936

(1) This note reflects a change in presentation. The contribution of entities accounted for by the equity method within the CNP Assurances group is now recorded underInvestments accounted for by the equity method. The 2003 financial statements have been modified accordingly. The amounts restated were €2 million for 2003, €11 million for pro forma 2003 and €37 million for 2004. This note describes the investments of CNP Assurances, which is proportionally consolidated at 42.69% in the Caisse des Dépôts group balance sheet as of December 31, 2004. Before the partnership Restructuring, the EULIA subsidiaries with insurance activities (namely Ecureuil IARD, Cegi, Saccef, Foncier Assurance and Socamab) and CDC Ixis Financial Guaranty were proportionally consolidated.“Other investments” consist mainly of equities and equity funds, bonds and bond funds, in the respective amounts of €8.0 billion and €51.3 billion (proportionallyconsolidated amounts excluding accrued interest) as of December 31, 2004.

Note 5 – Non-consolidated long-term equity holdings

A) MOVEMENTS

Impact of Acquisitions Disposals Other partnership Pro forma

(Euro millions) 12.31.2003 Charges Reversals movements Restructuring 12.31.2004 31.12.2003

Long-term equity holdings

Gross value (1) 3,174 47 (109) (114) (867) 2,131 2,305

Provisions (377) (25) 61 7 163 (171) (223)

Net book value 2,797 22 (48) (107) (704) 1,960 2,082

Advances

Gross value 585 155 (105) (12) (136) 487 427

Provisions (194) (18) 16 1 8 (187) (186)

Net book value 391 137 (89) (11) (128) 300 241

LONG-TERM EQUITY HOLDINGS (2) 3,188 159 (137) (118) (832) 2,260 2,323

(1) The contraction in the volume of long-term equity holdings resulted mainly from a reclassification from CDC Entreprises to portfolio securities in the amount of €147 million (other movements).(2) The Central Sector accounts for nearly all long-term equity holdings and advances.

Provision charges and reversals do not include second-half contributions from entities accounted for under the equity method followingthe partnership restructuring transaction. These specific movements are recorded in the column “Impact of partnership Restructuring”with the accounting movements related to the change in consolidation method.

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B) MAIN LONG-TERM EQUITY HOLDINGS

Bookvalue of Percentage

(Euro millions) securities Advances Provisions 12.31.2004 held

Companies in which the net book value of the group’s investment is over €50 million

Dexia 944 944 6.00

Areva 360 360 3.60

Compagnie Nationale du Rhône 207 207 29.42

Sicovam Holding 51 51 8.83

Sub-total 1,562 1,562

Other non-consolidated holdings 411 (142) 269

Advances related to non-consolidated holdings 473 (177) 296

SEM and SAIEM 158 14 (39) 133

TOTAL CONSOLIDATED AND NON-CONSOLIDATED LONG-TERM EQUITY HOLDINGS AND ADVANCES (1) 2,131 487 (358) 2,260

Of which, listed companies 1,304 1,304

(1) The Central Sector accounts for nearly all long-term equity holdings and advances.

Note 6 – Investments accounted for by the equity method

Pro forma(Euro millions) 12.31.2004 12.31.2003 12.31.2003

Of Of OfEquity- which, Equity- which, Equity- which,

accounted net accounted net accounted net Investment amount income amount income amount incomeBDPME 437 22 350 13 350 13

CNCE group (1) 3,775 199 3,478 140 87 (26)

C3D group entities 37 2 31 1 31 1

AIH-PBW 56 62 1 43 1

Other (2) (3) 92 48 61 30 768 64

INVESTMENTS ACCOUNTED FOR BY THE EQUITY METHOD 4,397 271 3,982 185 1,279 53Of which, investments accounted for by the equity method by entities engaged in banking and financial activities 4,323 264 3,940 157 1,246 52

Of which, investments accounted for by the equity method by entities engaged in non-banking activities 74 7 42 28 33 1

(1) The substantial increase in CNCE’s contribution is attributable to the partnership Restructuring transaction.(2) The presentation of this note has been modified relative to December 31, 2003. The contribution from entities accounted for by the equity method within the CNPAssurances group is now recorded under investments accounted for by the equity method, whereas at December 31, 2003 they were recorded under Investments ofinsurance companies (see Note 4). (3) As of December 31, 2003, the contributions from Ecureuil Vie and Nexgen were presented separately. They are now grouped together for that year in the “Other”category. The change between 2003 and 2004 resulted from the partnership Restructuring, as the Ecureuil Vie and Nexgen contributions to the Caisse des Dépôtsgroup consolidated financial statements are made via CNCE. Conversely, the contribution by C3D is presented separately, and applied retroactively to 2003 (whichresults in a reduction in the “Other” category).



Note 7 – Tangible and intangible fixed assets

A) BREAKDOWN


Amortization, Amortization, Amortization,depreciation depreciation depreciation

Gross and provisions Net Gross and provisions Net Gross and provisions Net

Operating fixed assets 2,705 (1,304) 1,401 2,942 (1,390) 1,552 3,191 (1,509) 1,682

Investment properties

Construction in progress 188 188 123 123 113 113

Land and buildings (1) 6,692 (2,197) 4,495 3,226 (1,048) 2,178 3,082 (1,050) 2,032

Forests and undeveloped land 21 21 20 20 20 20

Real estate holding companies 554 (22) 532 584 (23) 561 584 (23) 561

TANGIBLE ASSETS 10,160 (3,523) 6,637 6,895 (2,461) 4,434 6,990 (2,582) 4,408

Purchased goodwill 75 (38) 37 67 (30) 37 117 (45) 72

Concessions, licences, patents 419 (319) 100 335 (247) 88 443 (320) 123

Other intangible assets 124 (22) 102 148 (40) 108 759 (66) 693

INTANGIBLE ASSETS (2) 618 (379) 239 550 (317) 233 1,319 (431) 888

TANGIBLE AND INTANGIBLE ASSETS 10,778 (3,902) 6,876 7,445 (2,778) 4,667 8,309 (3,013) 5,296Of which, assets of entities engaged in banking and financial activities 2,753 (848) 1,905 3,360 (901) 2,459 4,215 (1,131) 3,084

Of which, assets of entities engaged in non-banking activities 8,025 (3,054) 4,971 4,085 (1,877) 2,208 4,094 (1,882) 2,212

(1) The change recorded under “Investment properties” was due mainly to the first-time consolidation of Société nationale immobilière (SNI), with a net overall contributionof around €2.2 billion. Fair value adjustments to SNI’s properties at the time of acquisition amounted to €265 million. The balance at December 31, 2004 was €179 million,after taking into account disposals carried out in the second half.(2) The sharp contraction in the balance of intangible assets is attributable to the partnership Restructuring, and more specifically to the elimination of the proportionalcontribution of CDC Ixis Asset Management North America LP (market share recognized when the company was acquired for US $719 million).

B) MOVEMENTS

Impact ofAcquisitions Disposals Other partnership Pro forma

(Euro millions) 12.31.2003 Charges Reversals movements Restructuring (1) 12.31.2004 12.31.2003

Gross tangible operating fixed assets 3,191 170 (197) (210) (249) 2,705 2,942

Depreciation and provisions (1,509) (151) 185 53 118 (1,304) (1,390)

Tangible operating assets 1,682 19 (12) (157) (131) 1,401 1,552Investment properties, gross 3,799 278 (424) 3,892 (90) 7,455 3,953

Depreciation and provisions (1,073) (119) 144 (1,196) 25 (2,219) (1,071)

Investment properties (2) 2,726 159 (280) 2,696 (65) 5,236 2,882

Intangible assets, gross 1,319 72 (8) 3 (768) 618 550

Amortization and provisions (431) (63) 4 (2) 113 (379) (317)

Intangible assets (3) 888 9 (4) 1 (655) 239 233

TANGIBLE AND INTANGIBLE ASSETS 5,296 187 (296) 2,540 (851) 6,876 4,667

(1) Including movements in the first-half of 2004 for entities consolidated by the equity method as of December 31, 2004 following the partnership Restructuring.(2) Including the impact of consolidation of Société nationale immobilière on June 30, 2004, representing the main contribution in the “Other movements” column inthe amount of around €2.2 billion, and the reclassification of some Société Foncière Anatole France operating properties to investment properties following the part-nership Restructuring (€0.2 billion decrease in “Other movements”).(3) Impact of the partnership Restructuring related mainly to the equity accounting of CDC Ixis Asset Management North America LP, the main contributor to this itemin 2003 (market share recognized at the time of this company’s acquisition for US $719 million).

25

Note 8 – Goodwill

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Goodwill

Goodwill as of January 1 1,101 1,275 1,275

Goodwill arising on investments and other movements (1) (528) (710) (174)

Goodwill on acquisitions, gross 573 565 1,101

Amortization as of January 1 (370) (379) (379)

Net amortization for the period (35) (56) (66)

Other movements (2) 222 281 75

Amortization (183) (154) (370)

GOODWILL, NET (3) 390 411 731

Negative goodwill

Net negative goodwill as of January 1 11 11 11

Reversals in the period (8) (1)

Other movements 13 12 1

NEGATIVE GOODWILL, NET 16 23 11

Impact on net income for the period (27) (56) (65)

(1) Including the impact of the partnership Restructuring (mainly CDC Ixis AM North America in the amount of €487 million).(2) Including the impact of the partnership restructuring (mainly CDC Ixis AM North America in the amount of €186 million as well as first-half charges for entities newlyconsolidated under the equity method).(3) Residual goodwill involves mainly the CNP and C3D sub-groups for €198 million and €167 million, respectively.

Note 9 – Accruals, deferrals and other assets

Pro forma (Euro millions) Note 12.31.2004 12.31.2003 12.31.2003Deferred charges 22 111 454

Prepaid expenses 52 66 239

Accrued income 33 43 894

Currency and forward financial instrument adjustment accounts 190 366 6,997

Collection accounts 15

Other accruals 20 34 2,681

Deferred tax assets 34 23 16 529

Accruals and deferrals 340 636 11,809

Premiums on purchases of options 7 1,833

Miscellaneous receivables 2,400 1,862 6,102

Settlement accounts on securities transactions 6 10 1,381

Inventories and similar 277 401 442

Accrued interest 16

Impairment provisions (83) (84) (89)

Other assets (1) 2,600 2,196 9,685

Share of reinsurers in technical reserves 1,881 1,701 1,734

Other insurance assets 954 1,028 1,134

Other insurance assets and share of reinsurers in technical reserves 2,835 2,729 2,868

ACCRUALS, DEFERRALS AND OTHER ASSETS 5,775 5,561 24,362

Of which, other assets of entities engaged in banking and financial activities 398 406 7,898

Of which, other assets of entities engaged in non-banking activities (1) 2,202 1,790 1,787

(1) C3D accounts for most of the contribution to other assets.



Note 10 – Interbank and similar transactionsadvances and loans from financial institutions

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Current accounts 6,857 5,347 11,055

Overnight accounts and advances 10,415

Securities sold under collateralized fixed repurchase agreements 824

Other amounts due 21


Sight amounts due to financial institutions 6,877 5,355 22,325

Term loans and advances 3,084 1,727 71,841

Securities sold under collateralized fixed repurchase agreements 17,626 17,199 25,028


Term loans from financial institutions 20,824 19,006 97,801

ADVANCES AND LOANS FROM FINANCIAL INSTITUTIONS (1) 27,701 24,361 120,126

(1) Following the partnership Restructuring, the Central Sector accounted for nearly all amounts due to financial institutions.

Note 11 – Customer transactions (liabilities)

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Current accounts 28,574 26,454 28,560


Customer deposits (1) 28,577 26,457 28,572

Loans from financial sector companies 173 160 2,830

Escrow accounts (consignations) 2,858 2,593 2,593

Term deposits (2) 15,705 16,922 21,929

Securities sold under uncollateralized fixed repurchase agreements 4

Securities sold under collateralized fixed repurchase agreements 80 11,807

Other 3 2 596


Other customer advances and loans 19,324 20,130 40,247

CUSTOMER TRANSACTIONS (3) 47,901 46,587 68,819

(1) The increase in deposits as of December 31, 2004 relative to the pro forma 2003 figure resulted from the sharp increase in deposits by notaries (€1.3 billion) andthe ACOSS current account (€0.8 billion).(2) Including the Retirement Trust Fund (Fonds de réserve des retraites – FRR), with assets of €11.3 billion as of December 31, 2004.(3) Following the partnership Restructuring, the Central Sector accounted for nearly all customer transactions.

27

Note 12 A) DEBT SECURITIES

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Commercial paper 2,524

Certificates of deposit 12,193

Medium-term notes and other negotiable debt instruments (1) 3,318 1,280 15,779


Interbank and negotiable debt securities 3,327 1,284 30,712

Bonds and similar debt securities 233 197 21,325


Bonds and similar debt securities 236 202 21,951

DEBT SECURITIES 3,563 1,486 52,663

(1) This item increased overall by around €2 billion relative to the pro forma 2003 figure, mainly as a result of the issuance of certificates of deposit by the Central Sectorin the amount of €2.6 billion.


Note 12 (cont’d)

B) SUBORDINATED DEBTIssue Due

(Euro millions) date date

Term subordinated debt

Crédit Foncier de France group July, 1994 July, 2004October, 1994 October, 2004December, 1994 December, 2004February, 1993 February, 2003

Total Crédit Foncier de France group

CDC IXIS group August, 2000 August, 2010September, 2002 September, 2022November, 2002 November, 2027January, 2003 January, 2033March, 2003 April, 2023April, 2003 April, 2015April, 2003 January, 2033June, 2003 March, 2018July, 2003 July, 2018

Total CDC IXIS group

CNP Assurances group May, 1999 May, 2009April, 2001 As of April 11, 2011 and through 2021May, 2001 As of April 11, 2011 and through 2021July, 2001 As of April 11, 2011 and through 2021December, 2001 As of April 11, 2011 and through 2021February, 2002 As of April 11, 2011 and through 2021April, 2002 As of April 11, 2011 and through 2021April, 2003 As of May 16, 2013 and through 2023June, 2003 As of June 24, 2013 and through 2023

Total CNP Assurances groupTOTAL TERM SUBORDINATED DEBT SECURITIES

Perpetual subordinated debt securities

CNP Assurances group November, 2004 No fixed maturityJune, 2004 PerpetualSeptember, 2004 PerpetualNovember, 2004 No fixed maturity

Crédit Foncier de France group 1992Other companies

TOTAL PERPETUAL SUBORDINATED DEBT SECURITIES

Term subordinated debt

CDC IXIS group December, 2001 December, 2011Société nationale immobilière (4)

Other companies

TOTAL TERM SUBORDINATED DEBT

Accrued interest

Crédit Foncier de France groupCDC IXIS groupOther companies

TOTAL ACCRUED INTEREST

TOTAL SUBORDINATED DEBT

(1) Libor USD 6 months less a 0.125% margin.(2) Subordinated debt securities hedged by a swap.


29

Interest Pro formarate 12.31.2004 12.31.2003 12.31.2003

8.12500% 228.32500% 358.50000% 11Libor 6 months (1)

68

Euribor 3 months (2) 198Euribor 6 months 16Euribor 3 months (2) 37Euribor 3 months (2) 42Euribor 3 months (2) 17Euribor 3 months (2) 61Euribor 3 months (2) 6Euribor 6 months 8Euribor 3 months (2) 397

782

4.62500% 172 173 1735.75% through 2011 and Euribor +1.57% as of July 11, 2011 64 64 645.75% through 2011 and Euribor +1.57% as of July 11, 2011 21 21 215.75% through 2011 and Euribor +1.57% as of July 11, 2011 21 21 215.75% through 2011 and Euribor +1.57% as of July 11, 2011 64 64 645.75% through 2011 and Euribor +1.57% as of July 11, 2011 43 43 435.75% through 2011 and Euribor +1.57% as of July 11, 2011 108 109 1095.25% through 2013 and Euribor +2% as of July 11, 2013 128 129 1294.7825% through 2013 and Euribor +2% as of June 24, 2013 85 86 86

706 710 710706 710 1,560

4.93% through 2016 and Euribor +1.60% as of November 15, 2016 39Tec 10 +10bp, cap at 9% 107Tec 10 +10bp, cap at 9% 21Euribor 3 months 0.70% through 2016 and Euribor 3 months +1.60% as of November 15, 2016 40(3) 109

7

207 116

Euribor 3 months 317255

2 15

255 2 332

3230

26

1,168 712 2,034

(3) The issue proceeds represent a net total of approximately €174 million for the Caisse des Dépôts group share and are amortized using an actuarial method over20 years. During the first 20 years, periodic payments in the form of interest will be made at a rate linked to Euribor applied to the nominal value of the securities.(4) Advances from the French State related to low-income housing transactions.



Note 13 – Technical reserves of insurance companies

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Technical reserves relating to unit-linked policies 6,858 5,948 5,961

Other technical reserves

Technical reserves, life business 62,602 58,254 58,384

Technical reserves, non-life business 1,942 1,888 2,209

Equalization reserves 5

TECHNICAL RESERVES OF INSURANCE COMPANIES 71,402 66,090 66,559

The above comprise the technical reserves of the CNP Assurances group, which was consolidated proportionally at 42.69% in thefinancial statements of Caisse des Dépôts group as of December 31, 2004.

The impact of the partnership Restructuring mainly involves the absence of contributions from the EULIA subsidiaries with insuranceactivities (namely Ecureuil IARD, Cegi, Saccef, Foncier Assurance and Socamab) and CDC Ixis Financial Guaranty.

Note 14 – Accruals, deferrals and other liabilities

Pro forma (Euro millions) Note 12.31.2004 12.31.2003 12.31.2003Deferred income 245 466 1,237

Accrued charges 48 67 789

Currency and forward financial instrument adjustment accounts 353 6,654

Other deferrals 36 38 2,746

Deferred tax liabilities 34 367 294 312

Accruals and deferrals 696 1,218 11,738

Premiums on sale of options 2 11 2,337

Borrowed securities (1) 13,913 13,064 27,720

Miscellaneous payables 3,301 2,737 10,178

Settlement accounts on securities transactions 445


Liabilities arising from direct insurance 530 344 352

Other insurance liabilities 2 2 6

Other liabilities 17,748 16,161 41,041

ACCRUALS, DEFERRALS AND OTHER LIABILITIES 18,444 17,379 52,779Of which, other liabilities of entities engaged in banking and financial activities 13,588 12,793 38,785

Of which, other liabilities of entities engaged in non-banking activities 4,160 3,368 2,256

(1) Increase in borrowed securities from the Savings Funds Division in the amount of €963 million relative to pro forma 2003.

31

Note 15 – Provisions for risks and chargesOther

movements,including Impact offirst-time partnership Pro forma

(Euro millions) 12.31.2003 Charges Reversals consolidations Restructuring 12.31.2004 12.31.2003

Provisions for retirement and other employment-related expenses (1) 243 51 (36) 47 (68) 237 175

Provisions for real estate risks (2) 91 18 (28) 82 (24) 139 66

Provisions for default risks (3) 262 91 (32) 2 (162) 161 99

Other provisions for risks and charges 380 53 (58) (4) (158) 213 222

PROVISIONS FOR RISKS AND CHARGES (4) 976 213 (154) 127 (412) 750 562

(1) Including the impact of changes in accounting method by CNP Assurances with respect to its pension and other benefit (long-service awards) commitments in theamount of €34.9 million at 100% (€10 million, group share), and reversal of €19 million on the Central Sector corresponding to the revaluation of the provision established when the framework agreement was implemented in 2002.(2) These changes, in particular the “Other movements”, are due to the first-time consolidation of Société nationale immobilière, whose contribution consists mainly ofprovisions for major repairs (balance of €81 million as of December 31, 2004).(3) Including €80 million of provision charges for interest subsidies on “Housing renovation” loans (Central Sector).(4) Provision charges and reversals do not include the second-half contributions of equity-consolidated entities following the partnership Restructuring transactions.These specific movements are shown in the “Impact of partnership Restructuring” column, with the accounting movements related to the change in consolidationmethod.

Note 16 – Changes in the Fund for General Banking Risks (FGBR), minority interests and consolidated retained earnings

Minority Minority RetainedFund for interests Minority interests Consolidated earnings, Total general in reserves interests in retained reserves group share consolidated banking (excluding in net earnings (excluding Translation Net (excluding retained

(Euro millions) risks (1) FGBR) income (excluding FGBR) FGBR) reserve income FGBR) earnings

Consolidated retained earnings as of December 31, 2003 795 1,054 103 1,157 12,371 (412) 1,581 13,540 15,492

Appropriation of 2003 earnings 103 (103) 1,581 (1,581)

Distribution in 2004 of 2003 earnings (2) (84) (84) (932) (932) (1,016)

Other changes (3) (185) 294 294 (104) 309 205 314

2004 earnings 166 166 1,912 1,912 2,078

CONSOLIDATED RETAINED EARNINGS AS OF DECEMBER 31, 2004 610 1,367 166 1,533 12,916 (103) 1,912 14,725 16,868

(1) This represents the FGBR of fully and proportionally consolidated companies; the Central Sector accounted for most of the balance as of December 31, 2004.(2) Dividends paid in 2004 on 2003 earnings were based on 33% of consolidated net income, corresponding to €527 million. The amount actually paid to the govern-ment totaled €524 million. The balance of €3 million corresponded to an indemnity on the Sagitrans loan, which was guaranteed by the State. An advance on the dividend of €405 million for 2004 was paid to the State following the capital gain on disposal of Ixis as part of the partnership Restructuring transactions. (3) The other changes resulted from:

– for the FGBR, deconsolidation of CDC Ixis and EULIA following the partnership Restructuring transactions;– for minority interests, partnership Restructuring transactions (€185 million), the recognition of minority interests in BDPME (€60 million) and changes in retained

earnings (including €49 million for CDC PME Croissance);– the partnership Restructuring transaction resulted in a €92 million decrease in consolidated reserves and a €297 million increase in translation reserves.



Note 17 A) CONSOLIDATED BALANCE SHEET ITEMS BY TERM TO MATURITY

3 months 3 months 1 to More than Total as of(Euro millions) or less to 1 year 5 years 5 years Eliminations 12.31.2004

ASSETS

Advances and loans to financial institutions 12,988 21 42 44 (637) 12,458

Advances and loans to customers 1,802 168 435 472 (127) 2,750

Security portfolios excluding trading securities

Public-sector securities and similar 8 143 621 4,862 5,634

Bonds and other fixed income securities 8,111 26,702 2,193 10,222 (462) 46,766

LIABILITIES

Advances and loans from financial institutions 23,559 2,298 1,155 1,474 (785) 27,701Of which, securities sold under collateralizedfixed repurchase agreements(including accrued interest) 15,838 1,840 17,678

Customer advances and loans 41,282 6,577 88 152 (198) 47,901Of which, securities sold under collateralizedfixed repurchase agreements(including accrued interest) 71 10 81

Debt securities

Bonds 3 52 159 392 (370) 236

Other debt securities 3,327 3,327

B) CONSOLIDATED BALANCE SHEET ITEMS BY CURRENCY

US Pound Total as of(Euro millions) Euro dollar sterling Other Eliminations 12.31.2004

ASSETS

Advances and loans to financial institutions 11,082 453 20 1,540 (637) 12,458

Advances and loans to customers 2,872 5 (127) 2,750

Security portfolios excluding trading securities

Public-sector securities and similar 5,491 143 5,634

Bonds and other fixed income securities 45,699 527 1,002 (462) 46,766

LIABILITIES

Advances and loans from financial institutions 25,077 734 834 1,841 (785) 27,701Of which, securities sold under collateralized fixed repurchase agreements(including accrued interest) 17,678 17,678

Customer advances and loans 47,963 13 2 121 (198) 47,901Of which, securities sold under collateralized fixed repurchase agreements(including accrued interest) 81 81

Debt securities

Bonds 591 6 9 (370) 236

Other debt securities 3,033 262 32 3,327

33

Note 18 A) OFF-BALANCE SHEET COMMITMENTS RELATED TO SPOT OR FORWARD

CURRENCY TRANSACTIONS AND LENDING AND BORROWING OF FOREIGN CURRENCY


Spot transactions

Euros purchased to be received 2 4 1,429Foreign currencies purchased to be received 12 2 8,433Euros sold to be delivered 12 2 2,930Foreign currencies sold to be delivered 2 4 6,845

Lending and borrowing

Foreign currencies loaned to be delivered 115Foreign currencies borrowed to be received 1,745

Forward currency transactions

Euros to be received against foreign currencies to be deliveredEuros to be received 2,477 1,608 47,031Foreign currencies to be delivered 2,366 1,587 43,893

Foreign currencies to be received against euros to be deliveredForeign currencies to be received 973 739 49,486Euros to be delivered 1,051 736 52,288

Foreign currencies to be received against foreign currencies to be delivered 54,080Foreign currencies to be delivered against foreign currencies to be received 54,371

Unaccrued premiums/discounts

To be received 12 3 319To be paid 3 300



Note 18 (cont’d)

B) FORWARD FINANCIAL INSTRUMENTS


Treasury/Trading (2) Hedging (3)

Purchase Sale Purchase SaleBorrowing Loan Borrowing Loan

FUTURES TRANSACTIONSOrganized marketsInterest rate contracts 92 92Foreign currency contracts 15Other contracts 74Over-the-counter marketsInterest rate swaps 40,183 33,481FRAForeign currency contractsOther contracts

OPTIONSOrganized marketsInterest rate optionsForeign currency optionsOther optionsOver-the-counter marketsInterest rate optionsCaps, floors 829 698 8,387 305SwaptionsForeign currency optionsOther options 260

(1) The Restructuring of the partnership with the Caisse d’Epargne Group resulted in a €1,427.4 billion decrease in interest rate swaps, which no longer received thefollowing contributions: CDC Ixis Capital Markets in the amount of €1,233.7 billion and CDC Financial Products for €204 billion.(2) Trading transactions include the specialized investment portfolios and individual open positions.(3) Hedging transactions include micro- and macro-hedging portfolios.

35

Pro forma 12.21.2003 (1) 12.31.2003

Treasury/ Treasury/Trading (2) Hedging (3) Trading (2) Hedging (3)

Purchase Sale Purchase Sale Purchase Sale Purchase SaleBorrowing Loan Borrowing Loan Borrowing Loan Borrowing Loan

108 34,012 47,054 12612 12

35,367 146,276

39,031 19,682 1,067,618 72,35127,045 36,472 43

4 2,046666 666 166 131

162 162 87,679 135,155

62,206 31,544

50 47 1,463 967 1,3431,831 1,700 6,309 345 49,037 79,170 5,077 313

763 763 21,424 29,421 163,746 3,358

285 10 262 12,047 14,857 419 72



Note 18 (cont’d)

C) FORWARD FINANCIAL INSTRUMENTS BY TERM TO MATURITY

3 months 3 months 1 to More than Total as of(Euro millions) or less to 1 year 5 years 5 years Eliminations 12.31.2004

FUTURES TRANSACTIONS

Interest rate contracts 184 184

Foreign currency contracts 15 15

Interest rate swaps 26,739 22,254 7,840 18,204 (1,373) 73,664

FRA

Other contracts 74 74

OPTIONS

Interest rate options

Caps, floors 2,313 8,071 96 (261) 10,219

Swaptions

Foreign currency options

Other options 260 260

D) OTHER OFF-BALANCE SHEET COMMITMENTS

1) Guarantee given by Caisse des Dépôts to Ixis Corporate & Investment Bank (ICIB)

Under an agreement approved on December 1, 2000, Caissedes Dépôts provided CDC Ixis — now Ixis Corporate &Investment Bank, or ICIB — with a joint guarantee. This guaran-tee applies to certain financial instruments that enable the refi-nancing of ICIB (issuance transactions, with the exception ofsubordinated issues, and interbank and treasury issues) as wellas signature commitments. Under the terms of the agreement,ICIB can in turn give guarantees to certain of its subsidiariesunder specific conditions.

The European Commission reviewed the terms of this agree-ment in May 2003. Under the terms of the EuropeanCommission’s approval, the granting of this guarantee to newtransactions will expire on January 23, 2007.

Since April 1, 2003, new balance sheet commitments that reachmaturity after January 23, 2017 may no longer be guaranteed,and since January 23, 2004, new off-balance sheet items thatreach maturity after January 23, 2017 may also no longer beguaranteed.

The above guarantee arrangements have remained in placesince June 30, 2004, when CDC Ixis was sold to the Caissed’Epargne Group and the partnership Restructuring agreementwas signed. In addition, under the terms of the agreement,CNCE has counter-guaranteed Caisse des Dépôts’ originalcommitment to CDC Ixis, in exchange for 50% of the feereceived by Caisse des Dépôts from ICIB.

The initial guarantee by Caisse des Dépôts to CDC Ixis helped toenhance the latter’s credit rating, thereby creating the founda-tion for a transition plan, approved by the EuropeanCommission’s Competition Department, to gradually wean thissubsidiary away from its parent company. The linkage of thesetwo commitments given and received should be seen as part ofthe process under which ICIB exits the activities manageddirectly by Caisse des Dépôts.

The normal accounting rules, which would have resulted in tworeciprocal commitments being entered under off-balance sheetcommitments, were not applied because they would not reflectthe substance of this complex and exceptional transactioninvolving the divestment of a former subsidiary and the plannedextinction of the commitments of Caisse des Dépôts.

37

Effective April 1, 2003, the annual fee on the guarantee is thehighest of the following three amounts:

a) an amount based on the ratio, on a consolidated basis, betweencapital at risk and Tier 1 capital, as defined for capital adequacypurposes;

b) the amount of total financial instruments outstanding issuedby ICIB multiplied by the difference, at the time of issue,between remuneration paid on financial instruments of com-parable maturity by financial institutions with the same ratingas ICIB (unsecured) and the remuneration paid on suchinstruments by financial institutions enjoying the same ratingas ICIB and guaranteed;

c) €8 million.

In 2004, fees due by ICIB to Caisse des Dépôts amounted to €10.3 million. The amount transferred to CNCE totaled €2.6 million in respect of the second half of 2004.

2) Sanpaolo IMI (SP IMI) commitment

Caisse des Dépôts and Sanpaolo IMI signed an agreement thatexpressed their intention to create a lasting strategic partner-ship. This agreement, which included cross-holdings acquiredby the two groups, granted Sanpaolo IMI two options to purchase CDC Ixis shares, the first in the event of a change incontrol of CDC Ixis, the second, which included a liquidity com-mitment, in the event that the shares were not listed on anorganized European market. In addition, Caisse des Dépôts hadan option to buy CDC Ixis shares owned by Sanpaolo IMI, whichcould be exercised in the event of a change in control ofSanpaolo IMI.

With the partnership Restructuring agreement, the ownershipinterest and partnership with SP IMI were transferred to CNCE.In the second half of 2004, as part of its repositioning within thetwo CNCE subsidiaries, Ixis Corporate & Investment Bank (ICIB)and Ixis Asset Management Group (IAMG), SP IMI exchangedits shares in Ixis for shares in each of these two companies.Caisse des Dépôts group was thus relieved of all its commit-ments toward Sanpaolo IMI as a shareholder in Ixis.

3) CNCE commitments

As part of the Alliance transactions, Caisse des Dépôts groupentered into commitments (given or reciprocal) with CNCE thatcould result in cash inflows and outflows. Since the impact ofthese commitments can be determined only at the end of theguarantee periods (between 2004 and 2011), only the maxi-mum contractual amounts have been recorded under off-balance sheet commitments. These commitments given andreceived totaled €389 million and €238 million, respectively.

On May 27, 2004, Caisse des Dépôts group and Caissed’Epargne Group signed a memorandum of understandingdesigned to realign their business relationship by restructuringtheir partnership. In addition, the two groups agreed to unwindin advance their commitments made in 2001, which in fact wereterminated as of June 30. This unwinding of commitmentsresulted in a non-recurring charge of €140.8 million for Caissedes Dépôts, which was partially offset by its share of non-recurring income in respect of its equity interest in CNCE. Thenet charge after tax related to the Alliance clauses was reducedto €67 million.



Note 19 – Credit risks

A) GLOBAL CREDIT RISK EXPOSURE

Gross GrossGross performing non- Gross

performing restructured performing irrecoverable Total(Euro millions) loans loans loans loans 12.31.2004Loans to financial institutions 12,458 10 12,468

Loans to customers 2,712 86 78 2,876

Available-for-sale and held-to-maturity portfolios 52,405 52,405

Financing and guarantee commitments given 31,586 31,586

TOTAL 99,161 96 78 99,335

B) PROVISIONS FOR DEFAULT RISK

Other Total(Euro millions) 12.31.2003 Allocations Reversals movements (1) 12.31.2004Loans to financial institutions (13) 3 (10)

Loans to customers (326) (27) 12 215 (126)Available-for-sale and held-to-maturity portfolios (fixed income securities) (2) (70) 70

Provisions recorded against assets * (409) (27) 15 285 (136)

Signature risk (22) (82) 5 4 (95)

Provisions for country risk (7) 7

Provisions for industry risk (37) 37

Other provisions for default risk (196) (9) 27 112 (66)

Provisions recorded as liabilities (262) (91) 32 160 (161)

TOTAL PROVISIONS FOR DEFAULT RISK (671) (118) 47 445 (297)

* Of which, provisions forGross performing loans (22) (1) 21 (2)Gross performing restructured loansGross non-performing loans and irrecoverable loans (387) (26) 15 264 (134)

(409) (27) 15 285 (136)

(1) Related mainly to the partnership Restructuring agreement.(2) Excluding provisions for interest-rate risk.

C) CREDIT RISKS – LOANS TO FINANCIAL INSTITUTIONS


performing restructured performing irrecoverable Loan Total(Euro millions) loans loans loans loans provisions 12.31.2004Breakdown by geographic region

France 12,458 10 (10) 12,458

Rest of Europe

United States

Asia

Rest of world

TOTAL BY GEOGRAPHIC REGION 12,458 10 (10) 12,458

39

D) CREDIT RISK – LOANS TO CUSTOMERS


performing restructured performing irrecoverable Loan Total(Euro millions) loans loans loans loans provisions 12.31.2004Breakdown by geographic region

France 2,712 86 78 (126) 2,750

Rest of Europe

United States

Asia

Rest of world

TOTAL BY GEOGRAPHIC REGION 2,712 86 78 (126) 2,750

Breakdown by sector

Sovereign and central governments 277 277

Local governments 77 5 1 (1) 82

Insurance and reinsurance 26 26

Other financial institutions 21 21

Funds (ABS/CDO, etc.) 0

Corporate 717 9 28 (42) 712

Small businesses and professionals 197 1 (1) 197

Private individuals 1,397 71 49 (82) 1,435

TOTAL BY SECTOR 2,712 86 78 (126) 2,750

E) CREDIT RISK – FIXED INCOME SECURITIES

Grossnon- Gross

Performing performing irrecoverable Loan Total(Euro millions) loans loans loans provisions 12.31.2004Breakdown by currency

Euro 51,193 51,193

US dollar 67 67

Pound sterling

Other currencies 1,145 1,145

TOTAL BY CURRENCY 52,405 52,405

Breakdown by rating

AAA 17,312 17,312

AA 22,220 22,220

A 7,363 7,363

BBB 674 674

BB

B

Not rated 4,836 4,836

TOTAL BY RATING 52,405 52,405

F) CREDIT RISK – SIGNATURE RISK

Nearly all signature risks involved French entities.



Note 20 – Interest and similar revenues and expenses on treasury and interbank transactions

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Interest on overdrafts 118 148 187

Interest on other loans and securities purchased under uncollateralized fixed resale agreements 1,089 1,277 2,471

Interest on securities purchased under collateralized fixed resale agreements 236 275 419

Premium/discount income and other interest and similar income 147 288 274

INTEREST AND SIMILAR REVENUES FROM TREASURY AND INTERBANK TRANSACTIONS 1,590 1,988 3,351

Interest on current accounts (91) (115) (193)

Interest on loans and securities sold under uncollateralized fixed repurchase agreements (1,542) (1,658) (3,185)

Interest on securities sold under collateralized fixed repurchase agreements (353) (561) (640)

Premium/discount expenses and other interest and similar expenses (184) (254) (203)

INTEREST AND SIMILAR EXPENSES ON TREASURY AND INTERBANK TRANSACTIONS (2,170) (2,588) (4,221)

Note 21 – Interest and similar revenues and expenses on customer transactions

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Interest on overdrafts 280 169 195

Interest on commercial and other loans to customers 741 611 1,095

Interest on other loans and on securities purchased under uncollateralized fixed resale agreements 76 46 88

Interest on securities purchased under collateralized fixed resale agreements 74 36 150

Interest and similar income from leasing transactions 29 29 55

Other interest and similar income 86 120 180

Doubtful interest receivables 22 22 39

Provisions for doubtful interest receivables (4) 12 18

Losses on uncollectable interest, reversals of provisions for interest and recoveries (2) (16) (24)

INTEREST AND SIMILAR REVENUES FROM CUSTOMER TRANSACTIONS 1,302 1,029 1,796

Interest on current accounts (270) (249) (261)

Interest on escrow accounts (32) (35) (35)

Interest on term deposits, borrowings and securities sold under uncollateralized fixed repurchase agreements (428) (276) (310)

Interest on securities sold under collateralized fixed repurchase agreements (113) (56) (201)

Other interest and similar charges (100) (94) (142)

INTEREST AND SIMILAR EXPENSES ON CUSTOMER TRANSACTIONS (943) (710) (949)

41

Note 22 – Interest and similar revenues and expenses on bonds and other fixed income securities

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Interest and similar revenues from available-for-sale securities 591 633 712

Interest and similar revenues from held-to-maturity securities 959 1,038 1,210

Other interest and similar revenues 424 277 759

IINTEREST AND SIMILAR REVENUES FROM BONDS AND OTHER FIXED-INCOME SECURITIES 1,974 1,948 2,681

Interest expenses on negotiable medium-term notes and certificates of deposit (259) (662) (1,310)

Interest and expenses on bonds (187) (240) (414)

Other interest expenses (1,291) (243) (604)

INTEREST AND SIMILAR EXPENSES ON BONDS AND OTHER FIXED-INCOME SECURITIES (1,737) (1,145) (2,328)

NET INTEREST AND SIMILAR REVENUES (EXPENSES) ON BONDS AND OTHER FIXED-INCOME SECURITIES 237 803 353

Note 23 – Revenues from variable income securities

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Revenues from available-for-sale securities 58 53 63

Revenues from portfolio securities 307 262 261

Revenues from long-term equity holdings 83 90 103

REVENUES FROM VARIABLE INCOME SECURITIES 448 405 427

Note 24 – Commission revenues and expenses

(Euro millions) 12.31.2004 Pro forma 12.31.2003 12.31.2003

Revenues Expenses Revenues Expenses Revenues ExpensesMoney-market and interbank transactions (1) (2) 1 (3)

Customer transactions 22 (2) 11 (1) 28 (2)

Securities transactions 22 (21) 15 (34) 32 (41)

Forward financial instrument transactions 8 (15) 5 (26) 10 (45)

Financial services 526 (111) 401 (93) 840 (157)

Currency transactions 1 1 2 (1)

Other commissions 5 (3) 8 (8) 11 (3)

COMMISSIONS 584 (153) 441 (164) 924 (252)



Note 25 – Gains and losses on trading transactions

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Net gains (losses) on trading securities 548 1,008 1,588

Net gains (losses) on foreign currency instruments 43 (231) 1

Net gains (losses) on forward financial instruments 338 (179) (315)

GAINS AND LOSSES ON TRADING TRANSACTIONS 929 598 1,274

The 2004 amounts in this note correspond mainly to CDC Ixis in the first half.

Note 26 – Gains and losses on available-for-sale and portfolio security transactions

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Net gains (losses) on the sale of available-for-sale securities (226) 302 10

Other income and expenses on available-for-sale securities (2) (4) (4)

Provisions taken/reversed on available-for-sale securities 7 125 187

Gains and losses on available-for-sale security transactions (221) 423 193

Net gains (losses) on the sale of portfolio securities 347 336 462

Provisions taken/reversed on portfolio securities 215 110 88

Gains and losses on portfolio security transactions 562 446 550

GAINS AND LOSSES ON AVAILABLE-FOR-SALE AND PORTFOLIO SECURITY TRANSACTIONS 341 869 743

43

Note 27 – Other net operating banking revenues and expenses


Revenues Expenses Revenues Expenses Revenues ExpensesGains or losses on disposal of investment properties (1) 97 (1) 128 (4) 131 (7)

Depreciation and provision charges/reversals on investment properties 37 (144) 17 (123) 17 (122)

Revenues and expenses on investment properties (2) 563 (106) 336 (85) 328 (81)

Total revenues and expenses on investment properties (2) 697 (251) 481 (212) 476 (210)

Revenues and expenses on real estate development transactions 45 (13) 16 (11) 16 (11)

Provision charges/reversals on real estate development transactions 1 (2) 1 (2) 1 (1)

Total revenues and expenses on real estate development transactions 46 (15) 17 (13) 17 (12)

Public-interest programs (64) (43) (42)

Provision charges/reversals on public-interest programs

Total revenues and expenses on public-interest programs (64) (43) (42)

Expenses rebilled, revenues recredited and expenses transferred 59 (1) 18 (1) 24 (5)

Other miscellaneous operating income and expenses 147 (222) 661 (216) 623 (252)

Provision charges/reversals on other operating income and expenses 10 (12) 6 (335) 6 (346)

Total other operating revenues and expenses 157 (234) 667 (551) 629 (598)

OTHER NET OPERATING BANKING REVENUES AND EXPENSES 959 (565) 1 183 (820) 1 146 (867)

OTHER NET OPERATING BANKING REVENUES AND EXPENSES 394 363 279

(1) Net income from the sale of investment properties contracted sharply in 2004 relative to the pro forma 2003 figure as a result of the non-recurrence of transactionscomparable to those that occurred in 2003 (pro forma 2003: sale in the first half-year of the Crédit Foncier headquarters building, which generated a capital gain ondisposal of €37 million (group share).(2) Revenues from investment properties increased significantly through the consolidation of Société nationale immobilière by Caisse des Dépôts group from June 30, 2004. In the second half of 2004 alone, SNI contributed €159 million in rental income.



Note 28 – Gross margin on insurance activities

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Earned premiums 9,090 8,241 8,286

Cost of benefits including changes in technical reserves (11,532) (10,506) (10,505)

Net investment income 3,250 3,014 3,021

GROSS MARGIN ON INSURANCE ACTIVITIES 808 749 802

Of which gross margin on life business 670 642 653

Of which gross margin on non-life business 138 107 149

This comprises the gross margin generated mainly by CNP Assurances, which was consolidated proportionally as of December 31,2004, as well as the insurance subsidiaries of EULIA (namely Ecureuil IARD, Crédit Foncier Assurance, Saccef, CEGI, Socamab, CDC Ixis Financial Guaranty) that were consolidated proportionally in the first half of the year.

RECONCILIATION OF GROSS MARGIN AND NET RECURRING INCOME


Life Non-life Total Life Non-life Total Life Non-life TotalGross margin of insurance activities 670 138 808 642 107 749 653 149 802

Dividends from equity holdings contributing to net underwriting income

Restatement of intra-group eliminations in gross margin (17) (17) (19) (19) (36) (36)

Attributable payroll expenses before intra-group eliminations (100) (17) (117) (96) (24) (120) (95) (21) (116)

Other attributable administrative expenses before intra-group eliminations (86) (68) (154) (105) (63) (168) (103) (85) (188)

Net operating amortization and depreciation (15) (2) (17) (25) (2) (27) (25) (1) (26)

Net investment income transferred and other adjustments (109) (21) (130) (104) (15) (119) (104) (16) (120)

Net underwriting income included in consolidation 343 30 373 293 3 296 290 26 316

Employee profit sharing (4) (4) (3) (3) (3) (3)

Net investment income transferred 109 21 130 104 15 119 104 16 120

Net recurring income included in consolidation 448 51 499 394 18 412 391 42 433

TOTAL NET RECURRING INCOME (100%) 1,035 98 1,133 908 35 943 909 70 979

45

Note 29 – Net income from other activities

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Sales and other operating revenues 2,577 2,362 2,362

Purchases consumed and other operating expenses (803) (663) (663)

NET INCOME FROM OTHER ACTIVITIES 1,774 1,699 1,699

The above relate solely to the C3D group, other than the investment property activities that are included in other banking operating revenues and expenses.

Note 30 – Payroll expenses

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Salaries (1,508) (1,322) (1,644)

Retirement expenses and related provision charges and reversals (100) (107) (100)

Other employee-related charges (484) (427) (492)

Incentive programs and profit-sharing (51) (38) (49)

Payroll taxes (101) (94) (111)

Provision charges and reversals (1) 12 (1)

PAYROLL EXPENSES (2,245) (1,976) (2,397)

Note 31 – Net amortization, depreciation and provisions on fixed assets

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Depreciation and amortization of operating fixed assets (243) (242) (275)

Reversals of depreciation and amortization of operating fixed assets 3 3 3

Net amortization and depreciation (240) (239) (272)

Provisions against operating fixed assets (6) (10) (11)

Reversal of provisions against operating fixed assets 9 6 6

Net provisions against operating fixed assets 3 (4) (5)

NET AMORTIZATION, DEPRECIATION AND PROVISIONS ON FIXED ASSETS (237) (243) (277)



Note 32 – Cost of risk (net appropriation to provisions)

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Provision charges in respect of:

Impairment of receivables (99) (97) (109)

Signature risk (1) (82) (4) (4)

Default and other risks (100) (84) (203)

PROVISION CHARGES (281) (185) (316)

Reversals of provisions for:

Impairment of receivables 87 72 113

Signature risk 6 18 18

Default and other risks 25 48 60

REVERSALS OF PROVISIONS 118 138 191

Losses and recoveries

Losses on irrecoverable receivables and recoveries (30) (49) (83)

LOSSES AND RECOVERIES (30) (49) (83)

COST OF RISK (193) (96) (208)

(1) The main change for the period was the establishment of a provision for €80 million in respect of interest subsidies on “Housing renovation” loans by the CentralSector vis-à-vis the savings funds. The amount of this provision was determined actuarially.

Note 33 – Gains and losses on fixed assets

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Gains (losses) on disposals of tangible and intangible fixed assets (1) 68 68Gains (losses) on transactions concerning long-term equity holdings and held-to-maturity securities 569 631 37

Gains (losses) on disposals of long-term equity holdings and on advances 537 680 97

Provision charges and reversals 37 (52) (62)

Net gains (losses) on transactions concerning long-term equity holdings and advances 574 628 35

Gains (losses) on transactions concerning held-to-maturity securities (6) 1

Provision charges and reversals 1 2 2

Net gains (losses) on transactions concerning held-to-maturity securities (5) 3 2

GAINS AND LOSSES ON FIXED ASSETS (1) 568 699 105

(1) As of December 31, 2004, the gains on fixed asset disposals consist mainly of capital gains realized as part of the partnership Restructuring (€590 million). This item also includes the €14 million capital gain on the disposal of Compagnie des Alpes by the C3D group.This item also includes negative contributions from loan write-offs (Central Sector for €18 million, including Sofaris for €11.6 million) and capital losses on disposal (Central Sector for €44.5 million, including FGI for €30 million).In 2004, net provision reversals totaled €37 million, mainly concerning the reversal of provisions on FGI securities (fully provisioned for €30 million).The year-to-year comparison is negative on two levels (2004 versus pro forma 2003): C3D’s contribution in 2003 included a capital gain of €70 million on the sale of Médica France, while Crédit Foncier de France sold its head office building in the first half of 2003 (€65 million in capital gain, group share). The non-recurrence of any comparable transactions in 2004 accounts for the lower contribution of this item to Caisse des Dépôts group’s consolidated net income.

For comparison purposes, the pro forma figures include the gross capital gain on consolidation realized through the partnershiprestructuring (€590 million).

47

Note 34 – Income taxes

A) BREAKDOWN OF DEFERRED AND CURRENT INCOME TAX AND EXPENSES

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Current income tax (804) (741) (758)

Deferred tax 118 117 167

TAX CHARGE (686) (624) (591)

Inclusion of the Marini amendment, which calls for a steady decrease in the long-term capital gains tax on equity holdings, in the Frenchgovernment’s revised 2004 budget enabled the Central Sector to recognize a deferred tax credit of €53 million.

B) ANALYSLS OF DEFERRED TAX ASSETS AND LIABILITIES

Pro forma (Euro millions) 12.31.2004 12.31.2003 12.31.2003Deferred tax assets 23 16 529

Deferred tax liabilities (367) (294) (312)

NET DEFERRED TAXES CARRIED ON THE BALANCE SHEET (344) (278) 217

The main change in deferred taxes is due to the fact that CDC Ixis, which was the main contributor to deferred tax assets (€511 million as of December 31, 2003), is no longer consolidated proportionally in the balance sheet as of December 31, 2004.



Note 35 – Income statement by business segment

Caissedes Dépôts

CNP C3D and direct CNCE Total(Euro millions) group group subsidiaries group (1) 12.31.2004Interest and similar revenues 18 1,935 4,651 6,604

Treasury and interbank transactions 146 1,444 1,590

Customer transactions 17 354 932 1,303

Bonds and other fixed-income securities 1 1,228 744 1,973

Other interest and similar revenues 207 1,531 1,738

Interest and similar expenses (53) (1,281) (4,669) (6,003)

Treasury and interbank transactions (46) (337) (1,787) (2,170)

Customer transactions (7) (672) (264) (943)

Bonds and other fixed-income securities (256) (1,481) (1,737)

Other interest and similar expenses (16) (1,137) (1,153)

Revenues from variable income securities 1 4 362 81 448

Commissions (revenues) 36 29 519 584

Commissions (expenses) (6) (29) (118) (153)Gains or losses on trading transactions (20) (1) (14) 964 929Gains or losses on available-for-sale security transactions and similar 9 550 (218) 341

Other net operating banking revenues and expenses (9) 267 144 (8) 394

Gross margin on insurance activities 748 60 808

Net income from other activities 1,774 5 (5) 1,774

NET BANKING INCOME 750 2,018 1,701 1,257 5,726

Operating expenses (235) (1,728) (400) (823) (3,186)

Payroll expenses (119) (1,019) (596) (511) (2,245)

Other administrative expenses (116) (740) (264) (322) (1,442)

Rebillings 31 460 10 501

Net depreciation, amortization and provision charges (16) (108) (85) (28) (237)

GROSS INCOME FROM OPERATIONS 499 182 1,216 406 2,303

Cost of risk (3) (83) (107) (193)

NET INCOME FROM OPERATIONS BEFORE INCOME TAX 499 179 1,133 299 2,110

Net income from investments accounted

for by the equity method 3 2 23 243 271

Gains or losses on fixed assets (2) 35 289 246 568

RECURRING INCOME BEFORE INCOME TAX 500 216 1,445 788 2,949

Net non-recurring income (expenses) (1) (100) (101)

Income taxes (156) (73) (318) (139) (686)Net amortization of goodwill (16) (12) (2) (11) (41)

Net movement in FGBR (43) (43)

Minority interests (60) (41) (39) (26) (166)

NET INCOME, GROUP SHARE 267 90 1,086 469 1,912

(1) Contribution by the Alliance for the first half of 2004 to all intermediate balances, and by CNCE group in the second half only to net income from investments accounted for by the equity method.

49

Note 36 – Income statement by geographical area

Total(Euro millions) Europe United States Asia 12.31.2004

NET BANKING INCOME 5,536 173 17 5,726

Operating expenses (3,100) (86) (3,186)

Payroll expenses (2,176) (69) (2,245)

Other administrative expenses (1,424) (18) (1,442)

Rebillings 500 1 501

Net depreciation, amortization and provision charges (236) (1) (237)

GROSS INCOME FROM OPERATIONS 2,200 86 17 2,303

Cost of risk (176) (17) (193)

NET INCOME 2,024 69 17 2,110

Net income from investments accounted for by the equity method 271 271

Gains or losses on fixed assets 568 568

RECURRING INCOME BEFORE INCOME TAX 2,863 69 17 2,949

Net non-recurring income (expenses) (101) (101)

Income taxes (650) (30) (6) (686)

Net amortization of goodwill (41) (41)

Net movement in FGBR (43) (43)

Minority interests (166) (166)

NET INCOME, GROUP SHARE 1,862 39 11 1,912



Methods used to prepare 2003 pro forma financial statements

To facilitate a comparison of the 2004 and 2003 figures at thesame scope, 2003 pro forma financial statements were preparedbased on the assumption that the partnership Restructuringagreement was completed in 2003. Overall, the 2003 pro formafinancial statements were prepared on the same bases as thoseused by Caisse des Dépôts in 2004.

The pro forma financial statements are provided merely as a refer-ence. They do not necessarily reflect the exact financial situationthat would have resulted from the Caisse des Dépôts group’sactivities had the partnership Restructuring transactions occurredin 2003, nor should they be construed as providing an indication ofthe Caisse des Dépôts group’s financial situation and results forany future period or date.

The pro forma financial statements should be read along with therelated notes, as well as the Caisse des Dépôts group’s historicalconsolidated financial statements.

1 – Consolidated subsidiaries

The 2003 pro forma financial statements reflect the samechanges in consolidation scope as those occurring in 2004 aspart of the partnership Restructuring agreement while ignoringall other changes (acquisition of SNI, change in consolidationscope at C3D, etc.):

• consolidation of the EULIA-CDC Ixis divisions under the equitymethod as of June 30, 2003; previously, they were proportion-ally consolidated;

• acquisition of 65% of CDC Entreprises Capital Investissement(formerly CDC Ixis Private Equity) by CDC Entreprises (as well as the investment companies owned by CDC ECI). CDC ECIwas previously proportionally consolidated and is now fully consolidated;

• acquisition by Caisse des Dépôts of CDC Ixis’s real estateholdings in the Anatol Invest and Logistis groups and of theC3D group’s holding — through Icade — of Foncière desPimonts (with the same accounting treatment of the earningscontribution as that used in 2004). These ownership interestsin real estate companies, previously proportionally consoli-dated, are now fully consolidated (exception: the Logistisgroup was consolidated using the equity method by CDC Ixisbefore the partnership Restructuring and, subsequently, byCaisse des Dépôts);

• acquisition by Caisse des Dépôts of 49% of Sogeposte fromCDC Ixis.

2 – Activities transferred other than consolidated subsidiaries

Business activities transferred in 2004 were also restated for2003 based on their 2004 valuations:

• recording on June 30, 2003 of the purchase of the listedequity portfolio (TAP) by Caisse des Dépôts from CDC Ixis;

• recording by CDC Entreprises of the private equity portfolioacquired from CDC Ixis.

3 – Assumptions and accounting treatment of earnings

The 2003 pro forma financial statements are also based on thefollowing assumptions and accounting treatment for earnings:

• First-half 2003: no change, as the contribution in the proforma financial statements is identical to that in the reportedfinancial statements for 2003.

• Second-half 2003:For the activities still held by the consolidated subsidiaries:

– equity accounting of second-half earnings of the EULIA-CDC Ixis divisions, previously proportionally consolidated,based on the new interest held in CNCE.

Note 37 – Preparation of pro forma financial statements

51

For the transferred activities:– recording by the beneficiaries of the changes in second-half

earnings of the activities transferred to Caisse des Dépôtsand its direct subsidiaries (mainly its real estate and privateequity businesses) based on the consolidation method andrates that followed the partnership Restructuring agree-ment;

– the income generated by the listed equity portfolio (TAP)sold by CDC Ixis to Caisse des Dépôts consists of divi-dends and valuation adjustments (resulting from the appli-cation of valuation methods used by CDC Ixis). Theproceeds from its disposal recorded by CDC Ixis in the sec-ond half of 2003 were not restated. By analogy with theportfolio management adopted by Caisse des Dépôts in thesecond half of 2004, no other changes were taken intoaccount;

– deduction of the above-mentioned second-half earningscontributed by the EULIA-CDC Ixis divisions at the rate ineffect prior to the partnership Restructuring agreement andin 2003;

– contribution of the cooperative investment certificatesissued by the regional savings banks: this contribution isdetermined based on the second-half earnings of theregional savings banks;

– the respective tax rates applicable in 2003 were maintainedin the pro forma financial statements;

– the partnership Restructuring agreement generated signifi-cant cash flows, which were reflected in Caisse des Dépôtsand the regional savings banks, respectively, by net inflowsand outflows, to which the average rate on 5-year OATs in2003 was applied;

– for comparison purposes, non-recurring earnings in 2004related to the partnership Restructuring agreement (capitalgain on the partnership Restructuring and administrativeexpenses related to the transaction) are included at thesame amounts in the 2003 pro forma earnings.

4 – Assumptions and accounting treatment of share acquisition costs as part of the partnership restructuring

The pro forma financial statements were prepared using the2004 terms of the transaction, the methods for determining theconsolidation scope and, where applicable, the treatmentapplied to residual goodwill.

Regarding the Part’Com subsidiary, the revaluation difference in 2004 was recognized in like fashion, but without recognizingin the second half of 2003 the write-down applied in 2004. Thiswrite-down was associated with business conditions observedin 2004, and cannot be applied retroactively to 2003, given the basic assumption of preserving the actual conditions of thetransactions.



Note 37 (cont’d)

5 – Reconciliation of reported 2003 income statement with pro forma 2003 income statement

Equity Inv. CNCE2003 interests Cert. Other Division

(Euro millions) Reported A B C

NET BANKING INCOME 6,264 (1,121) 13 (1,108)

General and administrative expenses (3,752) 731 731

GROSS INCOME FROM OPERATIONS 2,512 (390) 13 (377)

Cost of risk (208) 114 114

NET INCOME FROM OPERATIONS 2,304 (276) 13 (263)

Gains or losses on fixed assets 105 6 6

Earnings from equity affiliates 53 29 52 81

RECURRING INCOME BEFORE INCOME TAX 2,462 (241) 52 13 (176)

Goodwill amortization (65) 10 10

Net movement in FGBR (123) 37 37

Income taxes (591) 46 46

Minority interests (103) 8 8

Net non-recurring income (expenses) 1

NET INCOME 1,581 (140) 52 13 (75)

A) Negative contribution related to the reduced earnings from EULIA-Ixis subsidiaries sold to CNCE and deconsolidated proportionally at the rate before the partner-ship restructuring and then consolidated using the equity method at the proportional equity interest in CNCE after the restructuring. Also, deconsolidation in this division of listed and private equity portfolios transferred to Caisse des Dépôts and of real estate subsidiaries acquired by Caisse des Dépôts division.B) Contribution of cooperative investment certificates issued by the regional savings banks.C) Net remuneration of cash flows recorded by Caisse des Dépôts and the regional savings banks.D) Gain linked to the additional earnings derived from the impact of the partnership Restructuring on the indirect holding via CNCE.E) Full consolidation of the following subsidiaries: Anatol Invest, Logistis and Pimonts (the earnings of this group are recorded by Caisse des Dépôts as it carried theshares over the half-year period).

6 – Reconciliation of reported 2003 balance sheet with pro forma 2003 balance sheet

The pro forma balance sheet is characterized mainly by the €200 billion contraction in the balance sheet total, which resulted from thefact that the subsidiaries of EULIA-CDC Ixis were no longer consolidated proportionally but instead under the equity method in CNCE.

53

CNP Real CDC CDC E Capital gainDivision estate TAP Other Division Division or loss 2003

D E F G H I pro forma

7 5 34 3 42 72 (41) 5,236

(3) (4) (4) (13) (44) (3,085)

4 1 34 3 38 59 (85) 2,151

(2) (96)

4 1 34 3 38 57 (85) 2,055

(3) 7 7 (6) 590 699

2 1 1 2 47 185

3 9 34 4 47 51 552 2,939

(1) (56)

(86)

(3) (6) (1) (10) 7 (76) (624)

(1) (1) (1) (2) (8) (106)

(100) (99)

2 5 28 2 35 49 376 1,968

F) Full consolidation of listed equity portfolio previously carried by Ixis.G) Combined effect of acquisition of Sogeposte, the sale of CDC Italia Holding and the increased equity interest in BRE Descartes.H) Full consolidation via CDC Enterprise of private equity portfolios acquired from Ixis, for a net overall gain of €4 million.I) Consolidation in the pro forma accounts for comparison purposes with 2004 of the net capital gain generated by the partnership Restructuring in 2004.


Note 38 – Impact of the partnership Restructuring on the consolidation scope of Caisse des Dépôts group

12.31.2003 Breakdown after of changes related

12.31.2003 partnership Net to partnership Change(Euro millions) as reported Restructuring change Restructuring in method

Entries Exits MergersFully consolidated 511 538 27 4 23

Proportionally consolidated 202 53 (149) (2) (147)

Equity method 102 255 153 29 124

TOTAL NUMBER OF ENTITIES 815 846 31 33 (2)

Entries

1) Issue of cooperative investment certificates by the regional savings banks enabling their consolidation as equity affiliates at the CNCEgroup level (29 entities).

2) Creation of AIH France, a direct subsidiary of Caisse des Dépôts.

3) Consolidation of three new entities within CDC Entreprises group.

Exits

1) Merger of CDC Ixis and EULIA into CNCE.

Change of method

1) Contraction in the number of proportionally consolidated companies: the entities formerly making up the Ixis and EULIA divisions,which were largely proportionally consolidated before the partnership Restructuring, now contribute to Caisse des Dépôts groupthrough the equity accounting of CNCE.

2) Increase in the number of fully consolidated subsidiaries: namely the companies sold by CDC Ixis to Caisse des Dépôts group aspart of the partnership Restructuring.

3) Increase in the number of entities accounted for under the equity method: see point 1.


55

12.31.2004 12.31.2003Method % % Method % %

COMPANIES (1) control held (1) control held

CAISSE DES DEPOTS(CENTRAL SECTOR) FULL 100.00 100.00 FULL 100.00 100.00

CDC KINEON FULL 100.00 100.00 FULL 100.00 99.90

CDC ENTREPRISES CDC Entreprises group(formerly CDC PME) as of 12.31.2004 FULL 100.00 100.00

INFORMATIQUE CDC FULL 100.00 63.30 FULL 100.00 76.70

CDC HOLDING FINANCE(formerly SODEVE) FULL 100.00 100.00 FULL 100.00 100.00

CDC PME CROISSANCE FULL 100.00 55.59 FULL 100.00 55.90

SOGEPOSTE EQUI 49.00 49.00

CDC IXIS groupLOGISTIS GROUP as of 12.31.03

LOGISTIS EQUI 33.33 33.33

SCI PARISUD EQUI 33.33 33.33

SCI PLAINE DE L’AIN EQUI 33.33 33.33

SCI SAINT-LAURENT- DE-MURE EQUI 33.33 33.33

SCI CLESUD EQUI 33.33 33.33

SCI PORTE DE FRANCE EQUI 33.33 33.33

SCI SAINT-OUEN-L’AUMONE(formerly SCI VILLEBON) EQUI 33.33 33.33

SCI EUROCENTRE TOULOUSE EQUI 33.33 33.33

SCI ARTOIPOLE ARRAS EQUI 33.33 33.33

SCI PARISUD VI EQUI 33.33 33.33

CDC IXIS group ANATOL INVEST GROUP as of 12.31.03

ANATOL INVEST HOLDING FRANCE FULL 100.00 100.00

ANATOL INVEST HOLDING BV FULL 100.00 100.00

PBW GROUP

ATRIUM TOWER EQUI 50.00 50.00

BRISTOL EQUI 50.00 50.00

IBC EQUI 50.00 50.00

MYSLBEK EQUI 50.00 50.00

PBW REAL ESTATE FUND EQUI 50.00 50.00

WEBC EQUI 50.00 50.00

CDC ENTREPRISES GROUP

CDC ENTREPRISES Direct subsidiary of Caisse des Dépôts

(formerly CDC PME) FULL 100.00 100.00 as of 12.31.2003

CDC ENTREPRISES 1 FULL 100.00 86.93 CDC IXIS group as of 12.31.2003

CDC ENTREPRISES 2 FULL 100.00 47.64 CDC IXIS group as of 12.31.2003

PART’COM FULL 100.00 100.00 CDC IXIS group as of 12.31.2003

FP GESTION FULL 100.00 100.00

12.31.2004 12.31.2003Method % % Method % %


CDC ENTREPRISES VALEURS MOYENNES FULL 100.00 100.00

AVENIR ENTREPRISES GESTION FULL 100.00 51.00

CDC IXIS groupCDC IXIS PRIVATE EQUITY GROUP as of 12.31.2003

CDC ENTREPRISES EQUITY CAPITAL(formerly CDC EQUITY CAPITAL) FULL 100.00 77.25

CDC ENTREPRISES INNOVATION(formerly CDC INNOVATION PARTNERS) FULL 100.00 77.25

CDC ENTREPRISES CAPITAL INVEST (formerly CDC IXIS PRIVATE EQUITY) FULL 100.00 77.25

FONDINVEST CAPITAL FULL 100.00 61.77

CDC ENTREPRISES SERVICES INDUSTRIE(formerly SERVICES INDUSTRIES GESTION) FULL 100.00 77.25

SOCIETE NATIONALE IMMOBILIERE GROUP

SOCIETE NATIONALEIMMOBILIERE FULL 100.00 100.00

S2AI FULL 100.00 100.00

SAINTE-BARBE FULL 100.00 100.00

FONCIERE FERRUS FULL 100.00 100.00

BDPME GROUP

BDPME Holding EQUI 42.75 42.75 EQUI 42.95

CEPME (*) (*) (*) EQUI 43.69 43.69

AUXI CONSEIL EQUI 43.69 EQUI 42.95

AUXICOMI (*) (*) (*) EQUI 42.95

AUXIFINANCES EQUI 43.69 EQUI 42.95

AUXIMURS (*) (*) (*) EQUI 42.95

AVENIR ENTREPRISES EQUI 35.07 EQUI 33.05

AVENIR TOURISME EQUI 24.22 EQUI 23.81

BATIROC EQUI 39.13

BATIROC BRETAGNE (*) (*) (*) EQUI 21.49

BIOTECH GARANTIE EQUI 26.29 EQUI 25.83

BRETAGNE DEVELOPPEMENT (*) (*) (*) EQUI 21.49

CIE AUXILIAIRE(formerly CIE AUXILIAIRE DU CEPME - CAC) EQUI 43.69 EQUI 42.95

ENERBAIL EQUI 43.69 EQUI 42.95

PROCREDIT PROBAIL (*) (*) (*) EQUI 41.71

SOFARIS EQUI 25.97 EQUI 25.43

SOFARIS REGIONS EQUI 13.63 EQUI 13.35

CNP ASSURANCES GROUP

CNP ASSURANCES PROP 42.69 42.69 PROP 42.98 42.98

Note 39 – Scope of consolidation


12.31.2004 12.31.2003Method % % Method % %


ASSURBAIL PROP 42.29 PROP 42.58

ASSURPOSTE PROP 21.34 PROP 21.49

CAIXA SEGUROS(formerly CNP DO BRASIL) PROP 22.09 PROP 22.24

CNP IAM PROP 42.69 PROP 42.98

CNP IMMOBILIER PROP 42.69 PROP 42.98

CNP INTERNATIONAL PROP 42.69 PROP 42.98

CNP SEGUROS DE VIDA PROP 32.64 PROP 32.87

GLOBAL PROP 35.65 PROP 35.90

GLOBAL VIDA PROP 35.67 PROP 35.92

INVESTISSEMENT TRESOR VIE – ITV PROP 42.69 PROP 42.98

PREVIPOSTE PROP 42.69 PROP 42.98

PREVISOL EQUI 12.74 EQUI 12.83

PREVISOL RETIRO EQUI 12.73 EQUI 12.82

PREVISOL VIDA EQUI 12.75 EQUI 12.84

PROVINCIA SEGUROS DE VIDA EQUI 17.07 EQUI 17.19

SICAC PROP 42.69 PROP 42.98

ECUREUIL VIE PROP 21.34 PROP 21.49

FONCIERE ANATOLE FRANCE GROUP

SOCIETE FONCIERE ANATOLE FRANCE FULL 100.00 100.00 FULL 100.00 100.00

QUAI ANATOLE FRANCE SCI FULL 100.00 100.00 FULL 100.00 100.00

URBA CLUB FULL 100.00 100.00 FULL 100.00 100.00

SCI RIVE GAUCHE FULL 100.00 100.00 FULL 100.00 100.00

SCI AUSTERLITZ FULL 100.00 100.00 FULL 100.00 100.00

SARL ATHOS FULL 100.00 100.00 FULL 100.00 100.00

SCI ATHOS FULL 100.00 100.00 FULL 100.00 100.00

SCI ATRIUM FULL 100.00 100.00 FULL 100.00 100.00

C3D GROUP

C3D FULL 100.00 100.00 FULL 100.00 100.00

C3D GROUP: ICADE (formerly SCIC))

• REAL ESTATE AND HOLDING

ICADE SA (formerly SCIC SA) FULL 100.00 100.00 FULL 100.00 100.00

Cie IMMOBILIERE DE LA REGION PARISIENNE (CIRP) FULL 92.73 FULL 92.93

FONCIERE COMMERCES IDF FULL 100.00 FULL 100.00

SA POUR LA CONSTRUCTION DE LOGEMENTS ECONOMIQUES(SACLE) FULL 100.00 FULL 100.00

SCI LOCATIVES IDF(71 companies) FULL FULL

SCI LOCATIVES IDF (4 companies) EQUI EQUI

SCI LOCATIVES REGIONS(27 companies) FULL FULL

EMGP GROUP

EMGP SA FULL 85.15 FULL 82.36

SCI PDM 1 FULL 85.15 FULL 82.36

12.31.2004 12.31.2003Method % % Method % %




SCI BASSIN NORD PROP 42.58 PROP 41.18

SCI BATI GAUTIER FULL 85.15 FULL 82.36

CFI (CHEMIN DE FER INDUSTRIEL) SAS FULL 85.14 FULL 82.35

MANUTRA SECURITE SARL FULL 46.91 FULL 44.53

MANUTRA SAS FULL 46.83 FULL 45.26

SERAEL SA FULL 84.68 FULL 41.03

SNC LE PARC DU MILLENAIRE FULL 85.15 FULL 82.36

SCI 68 VICTOR-HUGO FULL 85.15 FULL 82.36

SCI LE PARC DU MILLENAIRE FULL 85.15 FULL 82.36

• REAL ESTATE DEVELOPMENT

GROUPE ESPACE & HABITAT SA(6 companies) FULL 44.78 FULL 44.78

GROUPE CAPRI ATLANTIQUE(56 companies) FULL 65.00 FULL 65.00

GROUPE CAPRI ATLANTIQUE(3 companies) PROP 32.50

GROUPE CAPRI LYON MEDITERRANEE(38 companies) FULL 65.00 FULL 65.00

GROUPE CAPRI LYON MEDITERRANEE(11 companies) PROP 32.50

GROUPE CAPRI IDF ET REGION NORD(56 companies) FULL 65.00 FULL 65.00

GROUPE CAPRI IDF ET REGION NORD(6 companies) PROP 65.00

GROUPE ELLUL(27 companies) FULL 33.05 FULL 33.15

GROUPE ELLUL(3 companies) PROP 16.53

ESPACE ET HABITAT AMENAGEMENT(formerly SCI LA MUSEAU) (2) FULL 44.78

GROUPE PROMOMIDI(10 companies) FULL 33.14 FULL 33.15

SCI TUILERIES (2) PROP 22.38

CAPRI (formerly CAPRI RESIDENCES) FULL 65.00 FULL 65.00

GROUPE CAPRI MEDITERRANEE(formerly COPRIM) (7 companies) FULL 65.00

GROUPE CAPRI MEDITERRANEE(formerly COPRIM) (1 company) PROP 32.50

• PROJECT MANAGEMENT

CENTRE EST PROMOTION SNC FULL 100.00 FULL 100.00

FRANCE OUEST PROMOTION SNC FULL 100.00 FULL 100.00

ARCOBA SAS FULL 100.00 FULL 100.00


57

12.31.2004 12.31.2003Method % % Method % %


GRANDE ARCHE ARCHITECTURE AMENAGEMENT(G3A) (SNC) (*) (*) (*) FULL 100.00

NORD PROMOTION SNC FULL 100.00 FULL 100.00

RESA ESPANA SA FULL 67.00 FULL 67.00

SANESCO SA EQUI 40.00 EQUI 40.00

ICADE G3A SAS FULL 100.00 FULL 100.00

SCIC ESPANA SA FULL 100.00 FULL 100.00

SETRHI - SETAE SA FULL 100.00 FULL 99.97

ICADE CITES SNC FULL 100.00 FULL 100.00

LES BUREAUX DE LILLE,DE NANTES FULL 100.00

TERTIAL GROUP

TERTIAL SNC FULL 100.00 FULL 100.00

AMENAGEMENT CROIX SARL FULL 62.70

ANTONY PARC II SCI FULL 100.00

SCI ESPACE MARCEAU FULL 51.00 FULL 51.00

LES PORTES D’ARCUEIL SNC FULL 100.00

LES PORTES D’ARCUEIL B SNC FULL 100.00

LES PORTES D’ARCUEIL C SNC FULL 100.00

NERUDA FONTANOTS SCI FULL 100.00 FULL 100.00

SCI NICE 400 PROMENADE DES ANGLAIS PROP 50.00 PROP 50.00

ODYSSEUM 2 SCI FULL 77.00 FULL 77.00

PB31 PROMOTION SNC PROP 50.00 PROP 50.00

SCI 22-24 RUE DE LAGNY FULL 51.00 FULL 51.00

• FACILITIES MANAGEMENT

EURIS Belgique SPRL FULL 100.00 FULL 60.08

EUROGEM SA FULL 100.00 FULL 60.00

GESTEC RS CONSULTANTS SAS FULL 100.00 FULL 60.00

KLEBER FM SAS FULL 75.00 FULL 45.00

PROPERTIA FM SAS PROP 49.00 PROP 29.40

STHAL SNC PROP 50.00 PROP 30.00

TREGS SARL PROP 30.00

IMOP SA FULL 79.00 FULL 46.80

FACIMALP SA FULL 64.88 FULL 38.92

IMSI EUROGEM IBERICA SA FULL 94.68 FULL 57.00

NORMANDIAL SERVICES FULL 60.00 FULL 36.00

IMMOGEST SRL FULL 100.00

ISIS SAS FULL 55.00

IPORTA SAS FULL 99.75

• PROPERTY MANAGEMENT

GFF INSTITUTIONNELS SAS(formerly AGIFRANCE SA) FULL 100.00 FULL 100.00

EUROCAMPUS SARL FULL 60.00 FULL 60.00

EUROSTUDIOMES SNC FULL 100.00 FULL 100.00

12.31.2004 12.31.2003Method % % Method % %


GFF FINCAS ANZIZU SARL(Spain) FULL 90.00 FULL 90.00

GFF HABITAT SAS FULL 100.00 FULL 100.00

GFF PARTICIPATIONS SAS(formerly GFF INSTITUTIONNELS) FULL 100.00 FULL 100.00

GFF VALORIAL SAS (*) (*) (*) FULL 100.00

GROUPEMENT FONCIER DE FRANCE (GFF) SAS FULL 100.00 FULL 100.00

MONTPARNASSE SERVICES SARL FULL 99.80 FULL 99.80

• SERVICES TO SEMs

SOCIETE CENTRALE POUR L’EQUIPEMENT DU TERRITOIRE (SCET) SA FULL 100.00 FULL 100.00

SURETIS FULL 66.58

FONCIERE DES PIMONTS GROUP

SOCIETE FONCIERE DES PIMONTS FULL 100.00 76.53

SA MESSINE PARTICIPATIONS FULL 100.00 76.53

SCI CAMILLE DESMOULINS FULL 100.00 76.53

SCI DU 1 ROND-POINT DES CHAMPS-ELYSEES FULL 100.00 76.53

SCI DU 114 AV. DES CHAMPS-ELYSEES FULL 100.00 76.53

SCI DU 22-24 AV. DE WAGRAM FULL 100.00 76.53

SCI DU 26-28 AV. DE WAGRAM FULL 100.00 76.53

SCI DU 3-5 AV. DE FRIEDLAND FULL 100.00 76.53

SCI DU 31 RUE DE MOGADOR FULL 100.00 76.53

SCI DU 69 BD HAUSSMANN FULL 100.00 76.53

SCI DU PONT-NEUF FULL 100.00 76.53

SCI DU 2 RUE DU 4-SEPTEMBRE FULL 100.00 76.53

SCI DU 1 TERRASSE BELLINI PROP 25.51 25.51

SAS DESCARTES (3) FULL 100.00 25.51

SCI MORIZET FULL 100.00 76.53

SCI SEINE A4B FULL 100.00 76.53

SCI RIVES DU XVe FULL 100.00 76.53

C3D GROUP: HOLDING & OTHER

ALTEAU SA FULL 51.00 FULL 51.00

C3D INVESTMENT SAS FULL 100.00 FULL 100.00

FINANCIERE TRANSDEV SA FULL 50.12 FULL 50.12

GROUPE BETHURE/CAP ATRIUM SASU FULL 99.96 FULL 99.96

SADSI SA FULL 99.96 FULL 99.96

C3D GROUP: TRANSDEV

• HOLDING

TRANSDEV SA FULL 68.01 FULL 68.01

COFITREC SNC FULL 68.01 FULL 68.01

TRANSAMO SA FULL 67.84 FULL 67.84

TRANSDATA SNC FULL 68.01 FULL 68.01



12.31.2004 12.31.2003Method % % Method % %


TRANSPART SNC FULL 68.01 FULL 68.01

RATP DEVELOPPEMENT SA EQUI 17.00 EQUI 17.00

PROGETOURS SARL FULL 68.01

EQUIVAL SAS PROP 34.01

LOCATOURISME FULL 68.01

• REGIONAL INTERCITY TRANSPORTATION

CARS ARIEGE PYRENEES SAS FULL 67.98

TRANSPORTS URBAINS DE ROMANS SARL (TUR CITE BUS) FULL 68.01

CARS COMTADINS SAS FULL 68.01 FULL 67.98

BARLATIER SAS FULL 68.01

Cie TRANSPORTS DE LA COMMUNAUTE SNC (CTC) FULL 54.41 FULL 54.41

COMPAGNIE AUTOCARS DE PROVENCE SAS (CAP) FULL 68.00 FULL 67.98

COURRIERS DE L’AUBE SCS FULL 62.21 FULL 63.77

ALPES BUS FOURNIER SARL FULL 68.01 FULL 68.01

MARTIN FRERES SNC FULL 67.66 FULL 67.66

MONT BLANC BUS SARL FULL 50.94 FULL 50.94

PROGESUD SA FULL 34.68 FULL 34.66

TRANSPORTS URBAINS DE MENTON SARL (TUM) FULL 68.01

RAPIDES DE BOURGOGNE SNC FULL 68.01 FULL 68.01

RAPIDES DE COTE-D’OR (RCO) SNC FULL 68.01 FULL 68.01

RAPIDES DE SAONE-ET-LOIRE SA FULL 45.32 FULL 44.43

RAPIDES DU SUD-EST SNC FULL 68.01 FULL 67.98

TRANSDEV DAUPHINE SAS FULL 68.01

ALTIBUS SARL FULL 44.87

ATCRB SAS FULL 68.01

STE NOUVELLE DES AUTOBUS AJACCIENS SA (SNAA) FULL 68.01 FULL 68.00

STE TRANSPORT AGGLOMERATION CHALONNAISE SARL (STAC) FULL 54.41 FULL 54.41

STE TRANSPORTS AUTOMOBILES DU MIDI SNC (STADIMI) FULL 68.01 FULL 67.98

TRANSAVOIE SA FULL 67.67 FULL 67.67

TRANSDEV ALPES SAS FULL 68.01 FULL 68.01

TRANSDEV EST SAS FULL 68.01 FULL 68.01

TRANSDEV LORRAINE ETB FULL 68.01 FULL 68.01

TRANSDEV SUD SAS FULL 68.01 FULL 67.98

TRANS’L SARL FULL 67.83 FULL 67.73

DUNAND SARL FULL 68.01

VOYAGES CROLARD SAS FULL 68.01 FULL 68.01

GUICHARD SARL FULL 68.01

MACONBUS SAS FULL 68.01

MARAIS BELLENE SCI FULL 68.01

12.31.2004 12.31.2003Method % % Method % %


SOCIETE DES TRANSPORTS DU BRIANCONNAIS SARL (STB) FULL 34.69

STA AGEN SA (STAA) FULL 68.01

TCVO SARL FULL 34.69

• PARIS INTERCITY TRANSIT

AEROPASS SAS FULL 68.01 FULL 68.00

AIRCAR SAS FULL 68.00 FULL 68.00

AUTOBUS DE MARNE-LA-VALLEE SAS (AMV) FULL 61.31 FULL 61.31

CARS BRIDET SA FULL 67.94 FULL 67.94

CARS D’ORSAY SAS FULL 67.96 FULL 67.98

CARS LE CAPLAIN SAS FULL 68.01 FULL 67.96

Cie EXPLOITATION AUTOMOBILE ET DE TRANSPORT SAS (CEAT) FULL 68.01 FULL 68.00

EUROPE AUTOCARS SAS FULL 67.99 FULL 67.99

INTERVAL SAS FULL 67.96 FULL 67.96

SOCIETE DE TRANSPORT DU BASSIN CHELLOIS SAS (STBC) PROP 54.41 FULL 54.41

SOFITRANS SA FULL 68.01 FULL 68.00

TRANSDEV PARIS EST SAS FULL 68.01 FULL 68.01

TRANSDEV PARIS SUD SA FULL 68.01 FULL 68.01

TRANSPORTS URBAINS DE CHELLES SA (TUC) FULL 67.96 FULL 67.93

VAL D’EUROPE AIRPORT SAS (VEA) FULL 57.53 FULL 57.53

VISUAL IDF SNC (*) (*) (*) FULL 68.01

VISUAL TOURISME SAS FULL 68.01 FULL 68.01

VISUAL SUD SNC FULL 68.01 FULL 68.01

CARS BIZIERE SA FULL 61.21 FULL 61.21

RAPIDES DU VAL-DE-LOIRE SNC FULL 68.01 FULL 68.01

OPTIMUM SARL FULL 68.01

TIPS SAS FULL 61.87

• FRANCE URBAN

SOCIETE DOUAISIENNE DE TRANSPORT SAS (SDT) FULL 68.01 FULL 67.99

STAB SA FULL 68.00 FULL 60.87

TRANSPORT EN COMMUN DE LA REGION D’AVIGNON SAS (TCRA) FULL 68.01 FULL 68.01

TRANSPORTS COMMUNS REGION METZ SAEM (TCRM) EQUI 27.07 EQUI 27.07

SETAO SNC FULL 68.00 FULL 68.01

TRANSDEV ORLEANS SNC FULL 68.01 FULL 68.01

SAINT-QUENTIN MOBILITE FULL 68.01

• INTERNATIONAL

LONDON UNITED 1994 LTD(United Kingdom) FULL 68.01 FULL 68.01

LONDON UNITED BUSWAYS LTD (United Kingdom) FULL 68.01 FULL 68.01

59

12.31.2004 12.31.2003Method % % Method % %


METROLINK PTY (Australia) PROP 34.01 PROP 34.01

SOVEREIGN BUSES LONDON LIMITED (United Kingdom) FULL 68.01 FULL 68.01

STANWELL LTD(United Kingdom) FULL 68.01 FULL 68.01

TRANSDEV AUSTRALIA LTD FULL 68.01 FULL 68.01

TRANSDEV NEW SOUTH WALES LTD (Australia) FULL 68.01 FULL 68.01

TRANSDEV PLC(United Kingdom) FULL 68.01 FULL 68.01

TRANSDEV Portugal (branch) FULL 68.01 FULL 68.01

TRANSDEV Portugal Limitada FULL 68.01 FULL 68.01

TRANSDEV TRAM UK LTD(United Kingdom) FULL 68.01 FULL 68.01

TRANSDEV VICTORIA LTD(Australia) FULL 68.01 FULL 68.01

DOMINGOS DA CUNHALimitida (Portugal) FULL 68.01 FULL 68.01

TRANSPORTES RODOVARIOS DE PORTUGAL SA(formerly CAIMA SA) FULL 68.01 FULL 68.01

RODOVIARIA DA BEIRA SA (RBL) (Portugal) FULL 66.30 FULL 66.30

TPT - SGPS SA FULL 68.01 FULL 68.00

RODOVIARIA D’ENTRE DOURO E MINHO SA (REDM) (Portugal) FULL 67.82 FULL 67.82

SOCIEDADE DE TRANSPORTES DO CARAMULOLimitada (Portugal) FULL 66.30 FULL 66.30

CHARLINE Limitida (Portugal) FULL 68.01 FULL 68.01

CAVADO-SA (Portugal, formerly CAVADO SGPS Limitada) FULL 68.01 FULL 68.01

NOTTINGHAM TRAM CONSORTIUM JV PROP 34.01

TRANSDEV EDINBURGH TRAM Ltd (United Kingdom) FULL 68.01

BRISBANE FERRIES JV (Australia) PROP 34.01

QUEENSLAND (Australia) FULL 68.01

EURAILCO GMBH (Germany) PROP 34.01

TRANSREGIO GMBH (Germany) PROP 25.50

TENEMETRO SL (Spain) FULL 40.81

EURAILCO UK LTD(United Kingdom) FULL 68.01

CALCADA (Portugal) FULL 68.01

TMP (Portugal) FULL 68.01

C3D GROUP: INFRASTRUCTURE ENGINEERING

• HOLDING

EGIS SA FULL 92.66 FULL 92.66

EGIS DEUTSCHLAND GMBH FULL 92.66 FULL 92.66

EGIS INGENIERIE SA FULL 92.66 FULL 92.66

EGIS PROJECT VICTORIA PTY EQUI 92.66 EQUI 92.66

12.31.2004 12.31.2003Method % % Method % %


• ENGINEERING DIVISION

BCEOM SA FULL 92.65 FULL 92.65

BDPA - SCET AGRI SA FULL 92.66 FULL 92.66

BETEREM INFRASTRUCTURE SA FULL 92.65 FULL 92.65

BETURE INFRASTRUCTURE SA FULL 92.66 FULL 92.66

INGENIERIE DES SYSTEMES D’INFORMATIONS ET DE SECURITE (ISIS) SA FULL 92.66 FULL 92.66

ITAL CONSULT SPA (Italy) EQUI 27.05 EQUI 27.05

JEAN MULLER INTERNATIONAL SA FULL 92.65 FULL 92.65

SCETAUROUTE SA FULL 92.66 FULL 92.66

SEMALY SA FULL 76.51 FULL 76.51

SERALP INFRASTRUCTURE SA FULL 92.65 FULL 92.65

SOCIETE METRO MARSEILLE SA (SMM) FULL 76.51 EQUI 76.51

GROUPE DORSCH CONSULT SOCIAL GMBH FULL 92.66 FULL 92.66

DORSCH CONSULT ERFURT FULL 92.66 FULL 92.66

BERLIN DORSCH CONSULT FULL 92.66 FULL 92.66

CDC CHEMNITZ FULL 92.66 FULL 92.66

DC INDIA FULL 78.76 FULL 92.66

DRESDEN DORSCH CONSULT FULL 83.39 FULL 83.39

GITEC CONSULT FULL 92.66 FULL 92.66

HYDROPROJECT FULL 91.06 FULL 91.06

PLASA FULL 92.66 FULL 92.66

WEIDLEPLAN FULL 92.66 FULL 92.66

ACI SA FULL 92.62 FULL 92.62

EYSER SA (Spain) FULL 92.66 FULL 92.66

EST INFRA SA FULL 92.64 FULL 92.64

EGIS SEMALY INC (United States) FULL 76.51 FULL 76.51

OUEST INFRA SA FULL 78.74 FULL 78.74

SCET CAMEROUN SA (Cameroon) FULL 92.59 FULL 92.58

SUD-OUEST INFRA FULL 60.21 FULL 60.21

INFRAPLAN FULL 92.60

SATEC FULL 92.66

SEMALY IRLANDE FULL 76.51

SEMALY PORTUGAL FULL 76.51

SEMALY SINGAPOUR FULL 76.51

SEMALY UK FULL 76.51

SISPLAN EQUI 33.66

• PROJECT MANAGEMENT DIVISION

EGIS DORSCH DEVELOPPEMENT (EDD) GMBH (Germany) FULL 92.66 FULL 92.66

EGIS PROJECTS GMBH (Austria) FULL 92.66 FULL 92.66

EGIS PROJECTS SA FULL 92.66 FULL 92.66

EPSYS (Philippines) FULL 92.66 FULL 92.66

EGIS PROJECT ASIA PASIFIC(Australia) FULL 92.64 FULL 92.64

SEP A28 PROP 60.23



12.31.2004 12.31.2003Method % % Method % %


• ENGINEERING DIVISION

ADEGIS PTY (Australia) PROP 46.33 PROP 46.32

ATTIKES DIADROMES LTD (Greece) EQUI 18.53 PROP 45.40

BHEGIS (Australia) PROP 46.33 PROP 46.32

EGIS PORTS SA EQUI 18.53 EQUI 18.53

OPERSCUT (Portugal) FULL 64.86 FULL 64.86

STALEXPORTS TRANSROUTE(Poland) PROP 41.70 PROP 41.70

TOLLAUST PTY PROP 46.33 PROP 46.33

TRANSLINK INVESTMENT PTY LTD (Australia) PROP 46.33 PROP 46.33

TRANSROUTEINTERNATIONAL SA FULL 92.66 FULL 92.66

TRANSROUTE PHILIPPINES(Philippines) FULL 92.66 FULL 92.66

UK HIGHWAYS SERVICES LTD(United Kingdom) PROP 46.33 PROP 46.33

AUTOSTRADA EXPLO EKSPLOATACJA (Poland) PROP 41.70 PROP 41.70

TRANS-CESTE DOO FULL 92.66

TRANSROUTE DOOSAN CO PROP 46.33

TMC PROP 31.50

C3D GROUP: COMPAGNIE DES ALPES

COMPAGNIE DES ALPES SA FULL 40.07 FULL 52.66

CENTRALE INVESTISSEMENTS ET LOISIRS SA (CIEL) FULL 40.07 FULL 52.66

CMBF(COURMAYEUR MONT-BLANC)SPA (Italy) EQUI 11.94 FULL 15.34

COMPAGNIE DU MONT-BLANC SA(formerly CMB SA) EQUI 6.06 PROP 8.53

DOMAINE SKIABLE DE FLAINE (DSF) SA FULL 32.44 FULL 42.63

DOMAINE SKIABLE DE GIF (DSG) SA FULL 32.42 FULL 42.63

SOCIETE DES MONTAGNES DE L’ARC SA (SMA) FULL 36.86 FULL 48.44

FUNIVIE DELLE ALPI SRL(FDA) (Italy) FULL 26.86

MERIBEL ALPINA SA FULL 40.07 FULL 52.66

MONT-BLANC COMPAGNIE SA(formerly CMMG) (MBC) (*) (*) (*) PROP 11.54

SAAS - FEE BERGBAHNEN AG(Switzerland) EQUI 15.23 EQUI 20.01

STE AMENAGEMENT ARVES GIFFRE SA (SAG) FULL 32.42 FULL 42.63

SELALP SA FULL 38.11 FULL 50.09

STE AMENAGEMENTLA PLAGNE SA (SAP) FULL 37.28 FULL 48.99

STE CONSTRUCTION IMMOBILIERE VALLEE DES BELLEVILLE (SCIVABEL) SCI FULL 32.71 FULL 42.99

12.31.2004 12.31.2003Method % % Method % %


STE TELEPHERIQUES DE LA GRANDE MOTTE SA (STGM) FULL 31.17 FULL 40.93

CMB RESTAURATION SARL EQUI 6.06 PROP 8.53

STE TELEPHERIQUES DE L’AIGUILLE GRIVE SA (STAG) FULL 36.86 FULL 48.44

STE EXPLOITATION VALLEE DES BELLEVILLE SA (SEVABEL) FULL 32.71 FULL 42.98

SWISSALP SA (Switzerland) FULL 40.07 FULL 52.66

TELEVERBIER SA (Switzerland) EQUI 8.13 EQUI 10.69

VVF VACANCES GROUP

VVF VACANCES SA FULL 80.00 FULL 80.00

VVF RESERVATION SA FULL 80.00 FULL 80.00

JUMBO TOURS FRANCE SA EQUI 28.00 EQUI 28.00

TOURING HOTEL SARL FULL 80.00 FULL 80.00

GREVIN Cie SA GROUP

GREVIN & Cie FULL 40.07 FULL 52.66

BAGATELLE SA FULL 40.07 FULL 52.66

FRANCE MINIATURE SA FULL 40.07 FULL 52.66

GREVIN & Cie TOURAINE (formerlyAQUARIUM DU VAL-DE-LOIRE) FULL 40.07 FULL 52.66

AQUARIUM GEANT DE SAINT-MALO SA FULL 40.07 FULL 52.66

LES PRODUCTIONS DU PARC SA FULL 40.07 FULL 52.66

MUSEE GREVIN SA FULL 38.42 FULL 50.49

SOCIETE DE MISE EN VALEUR DU PATRIMOINE SA FULL 40.07 FULL 52.66

BOIS DE BAGATELLE SCI(formerly FRANÇOIS PARENT) FULL 40.07 FULL 52.66

SCI LE PARC DE LOISIRS DE BAGATELLE FULL 40.07 FULL 52.66

FOREIGN SUBSIDIARIES

GREVIN DEUTSCHLAND GMBH(formerly FOR FUN) (Germany) FULL 40.07 FULL 52.66

GREVIN AVONTURENPARKHELLENDOORN BV (Netherlands) FULL 40.07 FULL 52.66

HARDERWIJK HELLENDOORNHOLDING BV (Netherlands) FULL 40.07 FULL 52.66

DOLFINARIUM HARDEWIJK BV(formerly ZEEDIERNPARK)(Netherlands) FULL 40.07 FULL 52.66

BICI ENTERTAINMENT SA(Switzerland) FULL 40.07 FULL 52.66

PLEASUREWOOD HILLS FULL 40.07

CAISSE NATIONALE DES CAISSES D’EPARGNE EQUI 40.21 40.21 EQUI 35.00 35.00

CNETI EQUI 40.21 29.53 EQUI 35.00 26.91

HOLLASSURE EQUI 40.21 40.21 EQUI 35.00 35.00

SOPASSURE EQUI 20.10 20.10 EQUI 17.49 17.49

CEP (29 regional savings banks) EQUI 8.04 8.04

61

12.31.2004 12.31.2003Method % % Method % %


OCEOR GROUP

FINANCIERE OCEOR EQUI 40.21 40.21 EQUI 35.00 28.66

BANQUE DE LA REUNION EQUI 40.21 32.94 EQUI 23.39

BANQUE DE NOUVELLE-CALEDONIE EQUI 40.21 38.53 EQUI 27.45

BANQUE DE TAHITI EQUI 40.21 38.39 EQUI 27.36

BANQUE DES ANTILLES FRANÇAISES EQUI 40.21 39.20 EQUI 27.93

BANQUE DES ILES SAINT-PIERRE-ET-MIQUELON EQUI 40.21 39.07 EQUI 27.79

BANQUE INTERNATIONALE DES MASCAREIGNES EQUI 40.21 35.48 EQUI 25.23

CAISSE D’EPARGNE DE NOUVELLE-CALEDONIE EQUI 40.21 40.21 EQUI 27.45

CREDIPAC POLYNESIE EQUI 40.21 38.38 EQUI 27.35

CREDIT COMMERCIAL DE NOUMEA EQUI 40.21 35.96 EQUI 25.63

CREDIT SAINT-PIERRAIS EQUI 18.93 18.93 EQUI 13.49

SLIBAIL REUNION EQUI 40.21 32.92 EQUI 23.38

SOCIETE HAVRAISE CALEDONIENNE EQUI 40.21 34.81 EQUI 24.80

GIE OCEOR INFORMATIQUE EQUI 40.21 33.94

MASCAREIGNES INVESTORS SERVICES LTD EQUI 40.21 40.21

SANPAOLO GROUP

BANQUE SANPAOLO EQUI 40.21 24.13 EQUI 35.00 21.00

BANQUE MICHEL INCHAUSPE EQUI 8.04 4.83 EQUI 4.20

CONSERVATEUR FINANCE EQUI 8.04 4.83 EQUI 4.20

EUROSIC SICOMI EQUI 40.21 7.91 EQUI 6.88

SANPAOLO ASSET MANAGEMENT SA EQUI 40.21 24.13 EQUI 21.00

SANPAOLO BAIL SA EQUI 40.21 24.13 EQUI 21.00

SANPAOLO FONDS GESTION SNC EQUI 40.21 24.13 EQUI 21.00

SANPAOLO MUR SNC EQUI 40.21 24.13 EQUI 21.00

SOCAVIE SNC EQUI 40.21 24.13 EQUI 21.00

SOCIETE FONCIERE D’INVESTISSEMENT SAS EQUI 40.21 24.13 EQUI 21.00

J VALLOT SARL (formerly SOCIETE FONCIERE JOSEPH VALLOT) EQUI 40.21 24.13 EQUI 21.00

SOCIETE IMMOBILIERE D’INVESTISSEMENT SARL EQUI 40.21 24.13 EQUI 21.00

UNI - INVEST SAS EQUI 40.21 24.13 EQUI 21.00

COMPAGNIE FINANCIERE EULIA PROP 67.57 67.57

BAIL ECUREUIL EQUI 40.21 24.13 PROP 67.57 67.57

ECUREUIL ASSURANCE IARD EQUI 40.21 26.14 PROP 67.57 43.92

ECUREUIL PARTICIPATIONS EQUI 40.21 40.21 PROP 67.57 67.57

QUAI DE SEINE GESTION ET LOCATION EQUI 40.21 40.21

SCI AVANT SEINE 1 EQUI 40.21 40.21

12.31.2004 12.31.2003Method % % Method % %


SCI AVANT SEINE 2 EQUI 40.21 40.21

ECUREUIL VIE (4) EQUI n/a 20.02 EQUI 33.64 33.64

GESTITRES EQUI 40.21 26.54 PROP 71.10 46.93

HOLGEST EQUI 40.21 40.21 PROP 71.10 71.10

SNC PARTICIPATIONS ECUREUIL EQUI 40.21 40.21

CREDIT FONCIER DE FRANCE GROUP

CREDIT FONCIER DE FRANCE EQUI 40.21 40.21 PROP 45.71 45.71

AUXILIAIRE DU CREDIT FONCIER DE FRANCE EQUI 40.21 40.21 PROP 45.71 45.71

COFIMAB EQUI 40.21 40.21 PROP 45.71 45.71

COMPAGNIE DE FINANCEMENT FONCIER EQUI 40.21 40.21 PROP 45.71 45.71

COMPAGNIE FONCIERE DE CREDIT (CFC) EQUI 40.21 40.21 PROP 45.71 45.71

CREDIT DE L’ARCHE EQUI 40.21 40.21 PROP 45.71 45.71

CREDIT FONCIER ASSURANCE COURTAGE EQUI 40.21 40.17 PROP 45.71 45.66

CREDIT FONCIER BANQUE EQUI 40.21 40.21 PROP 45.71 45.71

FCC TEDDY EQUI 40.21 40.21 PROP 45.71 45.71

FINANCIERE DESVIEUX EQUI 40.21 40.21 PROP 45.71 45.71

FONCIER ASSURANCE EQUI 40.21 40.21 PROP 45.71 45.71

FONCIER BAIL EQUI 40.21 40.21 PROP 45.71 45.71

FONCIER PARTICIPATIONS EQUI n/a 40.21 EQUI 45.71 45.71

SICP EQUI n/a 40.21 EQUI 45.71 45.71

SOCLIM EQUI 40.21 40.21 PROP 45.71 45.71

A3C EQUI 40.21 40.21

CFCAL BANQUE EQUI 40.21 26.70

CFCAL SCF EQUI 40.21 26.70

CICOBAIL GROUP

CICOBAIL EQUI 40.21 40.12 PROP 67.57 67.40

CINERGIE EQUI 40.21 40.11 PROP 67.57 67.47

MUR ECUREUIL EQUI 40.21 40.11 PROP 67.57 67.48

ENTENIAL GROUP

ENTENIAL EQUI 40.21 40.21

COMPAGNIE FINANCIERE DE GARANTIE (CFG SA) EQUI 40.21 40.21

VAUBAN MOBILISATIONS GARANTIES (VMG SA) EQUI 40.21 40.21

VENDOME INVESTISSEMENTS EQUI 40.21 40.21

INVESTIMUR SA EQUI 40.21 40.21

GRAMAT BALARD EQUI 40.21 32.12

QUATRINVEST EQUI 40.21 40.21

ENTENIAL CONSEILS EQUI 40.21 40.21

REGIE IMMOBILIERE DE LA VILLE DE PARIS (RIVP) EQUI 11.12 11.12

CAPRI RESIDENCES (5) EQUI 14.07 14.07

TITRISATION EQUI 40.21 40.21

ENVIRONNEMENT TITRISATION ENTENIAL EQUI 40.21 40.21


12.31.2004 12.31.2003Method % % Method % %


SOCFIM GROUP

SOCFIM EQUI 40.21 40.18 PROP 67.57 67.50

SNC SEI LOGEMENT EQUI 40.21 40.21 PROP 67.57 67.50

SNC SEI TERTIAIRE EQUI 40.21 40.21 PROP 67.57 67.50

MIFCOS (formerly SOCFIM PARTICIPATIONS) EQUI 40.21 40.21 PROP 67.57 67.50

SOCFIM PARTICIPATIONS IMMOBILIERES EQUI 40.21 40.18

SOCFIM TRANSACTIONS EQUI 40.21 40.18 PROP 67.57 67.50

SOCIETE EUROPEENNE D’INVESTISSEMENT (SEI) EQUI 40.21 40.21 PROP 67.57 67.50

EULIA CAUTION GROUP(formerly SOGECCEF)

EULIA CAUTION EQUI 40.21 40.21 PROP 67.57 67.57

CEGI EQUI 40.21 40.21 PROP 67.57 47.30

FINANCIERE CEGI EQUI 40.21 40.21 PROP 67.57 47.30

SACCEF EQUI 40.21 40.21 PROP 67.57 67.56

SOCAMAB EQUI 40.21 16.09 PROP 67.57 27.03

Formerly CDC IXIS GROUP

CDC IXIS (*) (*) (*) PROP 79.36 79.36

CDC ENTREPRISE 1 PROP 79.36 75.83

CDC ENTREPRISE 2 PROP 79.36 49.58

CDC INNOVATION 96 PROP 79.36 76.75

ITALIA HOLDING(formerly CDC IXIS ITALIA HOLDING) EQUI 8.04 8.04 PROP 71.90 71.90

ELECTROPAR FRANCE PROP 79.36 39.68

EURO MONTAIGNE NV PROP 79.36 79.36

FONDINVEST PROP 79.36 79.36

MARTIGNAC FINANCE EQUI 40.21 40.21 PROP 79.36 79.36

PART’COM PROP 79.36 79.36

SOGEPOSTE EQUI 38.89 38.89

IXIS INVESTORS SERVICE GROUP

IXIS INVESTOR SERVICES EQUI 40.21 40.21

CDC IXIS ADMINISTRATION DE FONDS (formerly GSF) EQUI 40.21 40.21 PROP 79.36 79.36

CDC URQUIJO(formerly BANCO CDC URQUIJO) EQUI 20.51 20.51 PROP 79.36 40.48

IXIS CIB GROUP (formerly CDC IXIS CAPITAL MARKET)

IXIS CORPORATE & INVESTMENT BANK (formerlyCDC IXIS CAPITAL MARKETS) EQUI 40.21 39.23 PROP 79.36 79.36

IXIS SECURITIES(formerly CDC BOURSE) EQUI 40.21 39.23 PROP 79.36 79.36

CLEA 2 EQUI 40.21 39.23 PROP 79.36 79.36

ICMOS PANGAEA EQUI 40.21 39.23 PROP 79.36 79.36

CDC SP - COMPARTIMENT PREVIE EQUI 40.21 39.23 PROP 79.36 79.36

NEXGEN GROUP

NEXGEN FINANCIAL HOLDINGS LTD EQUI 15.56 15.18 EQUI 30.71 30.71

NEXGEN RE LTD EQUI 15.56 15.18 EQUI 30.71 30.71

12.31.2004 12.31.2003Method % % Method % %


UNIVERSE HOLDINGS LTD EQUI 15.56 15.18 EQUI 30.71 30.71

NEXGEN MAURITIUS LTD EQUI 15.56 15.18 EQUI 30.71 30.71

NEXGEN CAPITAL LTD EQUI 15.56 15.18 EQUI 30.71 30.71

NEXGEN FINANCIAL SOLUTIONS LTD EQUI 15.56 15.18 EQUI 30.71 30.71

NEXGEN FINANCIAL SOLUTIONS(ASIA) PTE LTD EQUI 15.56 15.18 EQUI 30.71 30.71

BILTMORE 2002-1 LTD EQUI 30.71 30.71

MANGO CDO LTD EQUI 15.56 15.18 EQUI 30.71 30.71

LIME LTD EQUI 15.56 15.18

LIME 2 LTD EQUI 15.56 15.18

PAPAYA CDO EQUI 15.56 15.18

IXIS CAPITAL MARKETS GROUP (formerly GROUPE CDC IXIS NORTH AMERICA)

IXIS NORTH AMERICA EQUI 40.21 39.23 PROP 79.36 79.36

IXIS INVESTMENT MANAGEMENT Corp. (formerly CIMCO) EQUI 40.21 39.10 PROP 79.27 79.27

IXIS CAPITAL MARKETS NORTH AMERICA GROUP

IXIS CAPITAL MARKET NORTH AMERICA EQUI 40.21 39.23 PROP 79.36 79.36

BEDFORD OLIVER FUNDING EQUI 40.21 39.23 PROP 79.36 79.36

BLOOM ASSET HOLDING FUND PLC EQUI 40.21 39.23 PROP 79.36 79.36

CALYPSO INVESTMENTS GP EQUI 40.21 39.23

IXIS COMMERCIAL PAPER EQUI 40.21 39.23 PROP 79.36 79.36

IXIS DERIVATIVES INC EQUI 40.21 39.23 PROP 79.36 79.36

IXIS FINANCIAL PRODUCTS EQUI 40.21 39.23 PROP 79.36 79.36

IXIS FUNDING CORPORATION EQUI 40.21 39.23 PROP 79.36 79.36

CDC HOLDING TRUST EQUI 40.21 39.23 PROP 79.36 79.36

IXIS ASSET FINANCE INC EQUI 40.21 39.23

IXIS PARTICIPATIONS HOLDING INC EQUI 40.21 39.23

IXIS PARTICIPATIONS HOLDING N° 1 INC EQUI 40.21 39.23

CDC MIRROR TRUST ST 1-9.11.2000 PROP 79.36 79.36

CDC MIRROR TRUST ST 1-3.11.2000 PROP 79.36 79.36

CDC MIRROR TRUST ST 1-FAC PROP 79.36 79.36

IXIS REAL ESTATE CAPITAL(formerly MORTGAGE CAPITAL) EQUI 40.21 39.23 PROP 79.36 79.36

IXIS MUNICIPAL PRODUCTS EQUI 40.21 39.23 PROP 79.36 79.36

CDC POMPANO TRUST

CDC PROPERTY TRUST EQUI 40.21 39.23 PROP 79.36 79.36

CDC RANDALL PARK MALL PROPERTY TRUST EQUI 40.21 39.23 PROP 79.36 79.36

CDC CRESTED BUTTE HOTEL PROPERTY TRUST EQUI 40.21 39.23 PROP 79.36 79.36

IXIS SECURITIES NA INC(formerly CDC SECURITIES INC) EQUI 40.21 39.23 PROP 79.36 79.36

IXIS SECURITIZATION CORP (formerlyCDC SECURITIZATION CORP) EQUI 40.21 39.23 PROP 79.36 79.36

CDC WONDERLAND PROPERTY TRUST PROP 79.36 79.36


63

12.31.2004 12.31.2003Method % % Method % %


CCAV I EQUI 40.21 39.23 PROP 79.36 79.36

IXIS ANEMONE INC EQUI 40.21 39.23

IXIS CAPITAL ARRANGER EQUI 40.21 39.23

IXIS CMNA ACCEPTANCES, LLC EQUI 40.21 39.23

IXIS CMNA INTERNATIONAL PARTICIPATIONS (No. 1) EQUI 40.21 39.23

IXIS CMNA INTERNATIONAL PARTICIPATIONS ASSETS HOL. EQUI 40.21 39.23

IXIS CMNA GIBRALTAR LTD EQUI 40.21 39.23

IXIS MUNICIPAL PRODUCTS INCSARATOGA SERIES 2004 TRUST(10 companies) EQUI 40.21 39.23

CDC IXIS ASSET MANAGEMENT GROUP

IXIS ASSET MANAGEMENT `GROUP EQUI 29.72 29.72

IXIS AEW EUROPE EQUI 40.21 29.72 PROP 79.36 79.36

AEW Italy EQUI 32.17 23.77

CGW GESTION D’ACTIFS EQUI 13.40 9.90

CURZON GLOBAL LTD EQUI 40.21 29.72

CURZON GLOBAL UK LTD EQUI 40.21 29.72

CURZON GLOBAL PARTNERS EQUI 40.21 29.72

CURZON GLOBAL ADVISORY EQUI 40.21 29.72

ECUREUIL GESTION EQUI 38.20 28.23 PROP 69.89 69.89

ECUREUIL GESTION FCP EQUI 38.20 28.23

IXIS AEW Luxembourg EQUI 40.21 29.72

IXIS ASSET MANAGEMENT(formerly CDC IXIS ASSET MANAGEMENT) EQUI 40.21 29.72 PROP 72.09 72.09

CDC IXIS AME PROP 72.09 72.09

IXIS AM ASIA(formerly CDC AM ASIA) EQUI 40.21 29.72 PROP 72.09 72.09

IXIS AM JAPAN(formerly CDC AM JAPAN) EQUI 40.21 29.72 PROP 72.09 72.09

IXIS ASSET MANAGEMENT ITALIA(formerly CDC IXIS AM ITALIA) EQUI 40.21 29.72 PROP 72.09 72.09

IXIS ASSET MANAGEMENT ITALIA BRANCH EQUI 40.21 29.72

IXIS ASSET MANAGEMENT UK EQUI 40.01 29.57

IXIS AM PARTICIPATIONS 1 EQUI 40.21 29.72

IXIS AM PARTICIPATIONS 2 EQUI 40.21 29.72

IXIS FONDSERVICES GMBH EQUI 40.21 29.72 PROP 72.09 72.09

IXIS PRIVATE CAPITAL MANAGEMENT EQUI 40.21 29.72 PROP 72.09 72.09

CDC IXIS AM US CORPORATION GROUP

CDC IXIS AM US CORPORATION EQUI 40.21 29.72 PROP 72.09 72.09

CDC IXIS AM US LLC EQUI 40.21 29.72 PROP 72.09 72.09

CDC IXIS AM NA LP(formerly NVEST COMPANIES LP) EQUI 40.21 29.72 PROP 72.09 72.09

ACTIVE INVESTMENT ADVISORS EQUI

AEW Advisors Inc EQUI 40.21 29.72 PROP 72.09 72.09

AEW Capital Management, LP EQUI 40.21 29.72 PROP 72.09 72.09

AEW Capital Management Inc EQUI 40.21 29.72 PROP 72.09 72.09

12.31.2004 12.31.2003Method % % Method % %


AEW Equity Sharing LLC EQUI 40.21 PROP 72.09

PBW ASSET MANAGEMENT EQUI 19.91 14.71

TROCADERO GESTION EQUI 40.21 29.72

AEW II Corporation EQUI 40.21 29.72 PROP 72.09 72.09

AEW Investment Group Inc EQUI 40.21 29.72 PROP 72.09 72.09

AEW Management and Advisors, LP EQUI 40.21 29.72 PROP 72.09 72.09

AEW Partners III Inc EQUI 40.21 29.72 PROP 72.09 72.09

AEW Partners IV Inc EQUI 40.21 29.72 PROP 72.09 72.09

AEW Real Estate Advisors Inc EQUI 40.21 29.72 PROP 72.09 72.09

AEW Securities Limited Patnership EQUI 40.21 29.72 PROP 72.09 72.09

AEW TSF INC EQUI 40.21 29.72 PROP 72.09 72.09

AEW VIF INVESTORS INC EQUI 40.21 29.72

Asashi Nvest Investment Advisory Co, LTD EQUI 19.70 14.56 EQUI 35.32 35.32

Back Bay Advisors Inc PROP 72.09 72.09

Capital Growth Management, LP EQUI 20.11 14.86 EQUI 36.05 36.05

Caspian Capital Management EQUI 20.51 15.16 PROP 72.09 36.77

IXIS AM Advisors, LP EQUI 40.21 29.72 PROP 72.09 72.09

IXIS AM Associates Inc EQUI 40.21 29.72 PROP 72.09 72.09

IXIS AM AUSTRALIA HOLDINGS LLC EQUI 40.21 29.72 PROP 72.09 72.09

IXIS AM AUSTRALIA LTD EQUI 40.21 29.72 PROP 72.09 72.09

IXIS AM Distribution Corporation EQUI 40.21 29.72 PROP 72.09 72.09

IXIS AM Distributors, LP EQUI 40.21 29.72 PROP 72.09 72.09

IXIS AM Holdings, LLC EQUI 40.21 29.72 PROP 72.09 72.09

IXIS AM Services Inc EQUI 40.21 29.72 PROP 72.09 72.09

IXIS Investment Services Japan Inc EQUI 40.21 29.72 PROP 72.09 72.09

CREA Western Investors I Inc EQUI 40.21 29.72 PROP 72.09 72.09

Federal Street Management Inc EQUI 40.21 29.72 PROP 72.09 72.09

HANSBERGER GROUP INC EQUI 10.05 7.43 EQUI 18.02 18.02

Harris Associates Inc EQUI 40.21 29.72 PROP 72.09 72.09

Harris Associates, LP EQUI 40.21 29.72 PROP 72.09 72.09

Harris Partners, LLC EQUI 40.21 29.72 PROP 72.09 72.09

Harris Associates Securities, LP EQUI 40.21 29.72 PROP 72.09 72.09

Jurika & Voyles Inc PROP 72.09 72.09

Kobrick Funds, LLC EQUI 40.21 29.72 PROP 72.09 72.09

Loomis Sayles & Company Inc EQUI 40.21 29.72 PROP 72.09 72.09

Loomis Sayles & Company, LP EQUI 40.21 29.72 PROP 72.09 72.09

Loomis Sayles Solutions Inc EQUI 40.21 29.72 PROP 72.09 72.09

Loomis Sayles Equity Sharing, LLC EQUI 40.21 PROP 72.09

Loomis Sayles Distributors, LP EQUI 40.21 29.72 PROP 72.09 72.09

Loomis Sayles Distributors Inc EQUI 40.21 29.72 PROP 72.09 72.09

Loomis Sayles Futures, LLC EQUI 40.21 29.72

Loomis Sayles Consumer Discretionary LP EQUI 34.58 25.56

Loomis Sayles Consumer Discretionary GP, LLC EQUI 40.21 29.72

Loomis Sayles Consumer Discretionary Hedge Fund PROP nc nc



12.31.2004 12.31.2003Method % % Method % %


Loomis Sayles International Fund Services Ltd PROP nc nc

MC Management Inc EQUI 40.21 29.72 PROP 72.09 72.09

MC Management LP EQUI 40.21 29.72 PROP 72.09 72.09

Mutualfunds.com, LLC EQUI 34.60 34.60

NEICOMP LLC EQUI 40.21 29.72 PROP 72.09 72.09

Nvest International Partnership, LP EQUI < 15 < 15 EQUI < 15 < 15

Reich & Tang Distributors Inc EQUI 40.21 29.72 PROP 72.09 72.09

Reich & Tang AM, LLC EQUI 40.21 29.72 PROP 72.09 72.09

Reich & Tang Services Inc EQUI 40.21 29.72 PROP 72.09 72.09

Seaport Senior Housing, LLC EQUI 40.21 29.72 PROP 72.09 72.09

Snyder Capital Management Inc EQUI 40.21 29.72 PROP 72.09 72.09

Snyder Capital Management, LP EQUI 40.21 29.72 PROP 72.09 72.09Vaughan Nelson Investment Management Inc EQUI 40.21 29.72 PROP 72.09 72.09Vaughan Nelson Investment Management, LP EQUI 40.21 29.72 PROP 72.09 72.09Vaughan Nelson Trust Company(formerly VNSM Trust Company) EQUI 40.21 29.72 PROP 72.09 72.09Westpeak Investment Advisors Australia LTD EQUI 40.21 29.72 PROP 72.09 72.09Westpeak Investment Advisors Inc EQUI 40.21 29.72 PROP 72.09 72.09

Westpeak Global Advisors EQUI 40.21 29.72 PROP 72.09 72.09Grand Cathay Securities Investment trust

CIFG GROUP (formerly CDC IXIS FINANCIAL GUARANTY)

CIFG HOLDING EQUI 40.21 40.21 PROP 79.36 79.36

CIFG EQUI 40.21 40.21 PROP 79.36 79.36

CIFG EUROPE EQUI 40.21 40.21 PROP 79.36 79.36

CIFG NA EQUI 40.21 40.21 PROP 79.36 79.36

CIFG SERVICES EQUI 40.21 40.21 PROP 79.36 79.36NEW GENERATION FUNDING TRUSTS (48 trusts) EQUI 40.21 40.21

MOGADOR LTD EQUI 40.21 40.21 PROP 79.36 79.36

VEGA FINANCE GROUP

VEGA FINANCE EQUI 40.21 40.21 PROP 79.36 67.46

VEGA MULTIMANAGER EQUI 40.21 40.21 PROP 79.36 67.43

VEGA PARTENAIRES EQUI 40.13 40.13 PROP 79.36 67.19

STRATUTS CONSULTANTS EQUI 28.15 28.15 PROP 79.36 45.87STRATUTS CONSULTING PATRIMOINE EQUI 16.49 16.49AGENCE FRANÇAISE DU PATRIMOINE EQUI 13.49 13.49

ANTEIS EQUI 20.53 20.53

C&M FINANCE EQUI 8.04 8.04 EQUI 13.49 13.49

P&B FINANCE EQUI 13.67 13.67 EQUI 22.94 22.94

VEGA GESTION DE FORTUNE EQUI 40.21 40.21 PROP 79.36 67.46

CDC IXIS PRIVATE EQUITY GROUPCDC ENTREPRISES EQUITY CAPITAL(formerly CDC EQUITY CAPITAL) PROP 79.36 79.36CDC ENTREPRISES INNOVATION(formerly CDC INNOVATION PARTNERS) PROP 79.36 79.36CDC ENTREPRISES CAPITAL INVEST(formerly CDC IXIS PRIVATE EQUITY) 14.07 14.07 PROP 79.36 79.36

FONDINVEST CAPITAL PROP 79.36 63.47CDC ENTREPRISES SERVICES INDUSTRIE(formerly SERVICES INDUSTRIES GESTION) PROP 79.36 79.36

12.31.2004 12.31.2003Method % % Method % %


FONCIERE DES PIMONTS GROUP

SOCIETE FONCIERE DES PIMONTS PROP 79.36 58.34

SA MESSINE PARTICIPATIONS SA PROP 79.36 58.34

SCI CAMILLE DESMOULINS PROP 79.36 58.34

SCI MONTSOURIS 2001 PROP 39.68 29.17SCI DU 1 ROND-POINTDES CHAMPS ELYSEES PROP 79.36 58.34SCI DU 114 AV. DES CHAMPS-ELYSEES PROP 79.36 58.34

SCI DU 22-24 AV. DE WAGRAM PROP 79.36 58.34

SCI DU 26-28 AV. DE WAGRAM PROP 79.36 58.34

SCI DU 3-5 AV. DE FRIEDLAND PROP 79.36 58.34

SCI DU 31 RUE DE MOGADOR PROP 79.36 58.34

SCI DU 69 BD HAUSSMANN PROP 79.36 58.34

SCI DU PONT-NEUF PROP 79.36 58.34

SCI DU 2 RUE DU 4-SEPTEMBRE PROP 79.36 58.34

SCI DU 1 TERRASSE BELLINI PROP 26.45 19.45

SAS DESCARTES (3) PROP 59.79 52.78

SCI MORIZET PROP 79.36 58.34

SCI SEINE A4B PROP 79.36 58.34

SCI RIVES DU XVe (3)

LOGISTIS GROUP

LOGISTIS EQUI 26.45 26.45

SCI PARISUD EQUI 26.45 26.45

SCI PLAINE DE L’AIN EQUI 26.45 26.45

SCI SAINT-LAURENT-DE-MURE EQUI 26.45 26.45

SCI CLESUD EQUI 26.45 26.45

SCI PORTE DE FRANCE EQUI 26.45 26.45SCI SAINT-OUEN-L’AUMONE(formerly SCI VILLEBON) EQUI 26.45 26.45

SCI EUROCENTRE TOULOUSE EQUI 26.45 26.45

SCI ARTOIPOLE ARRAS EQUI 26.45 26.45

SCI PARISUD VI EQUI 26.45 26.45

ANATOL INVEST HOLDING BV GROUP

ANATOL INVEST HOLDING BV PROP 79.36 79.36

PBW GROUP

ATRIUM TOWER EQUI 39.68 39.68

BRISTOL EQUI 39.68 39.68

IBC EQUI 39.68 39.68

MATY AS KIRALY EQUI 39.68 39.68

MYSLBEK EQUI 39.68 39.68

PBW REAL ESTATE FUND EQUI 39.68 39.68

WEBC EQUI 39.68 39.68

(*) Merger.(1) Consolidation methods – FULL: fully consolidated – PROP: proportionallyconsolidated – EQUI: equity method.(2) Allocation to the Espace et Habitat Group.(3) SAS Descartes: jointly held with Caisse des Dépôts group and Foncière des Pimonts (held by CDC Ixis group in 2003 then by C3D in 2004 after the partnership Restructuring).(4) Jointly held with CNP Assurances.(5) Jointly held with C3D - Real estate development.

65

Independent Auditors’ report on the consolidated financial statementsYear ended December 31, 2004

Ladies and gentlemen,

In accordance with the assignment entrusted to us, we haveaudited the accompanying consolidated financial statements of Caisse des dépôts et consignations for the year endedDecember 31, 2004.

These financial statements have been approved by the Chairmanand Chief Executive Officer. Our role is to express an opinion onthese financial statements based on our audit.

1 – Opinion on the financial statementsWe conducted our audit in accordance with the professionalstandards applied in France. Those standards require that we planand perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstate-ment. An audit includes examining, on a test basis, evidence sup-porting the amounts and disclosures in the financial statements.An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evalu-ating the overall presentation of the financial statements. Webelieve that our audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements present fairlythe assets and liabilities, financial position and results of the entityformed by the companies included in the consolidation scope, inaccordance with French accounting regulations and generallyaccepted accounting principles.

The above opinion notwithstanding, we call your attention to Note 37 to the consolidated financial statements, which describesthe manner in which the pro forma comparative data has beenprepared and states that this data is not necessarily representativeof the financial position and results that would have been recordedhad the transaction been carried out prior to its actual date.

2 – Justification of our assessmentsIn accordance with the provisions of article L. 225-235 of France’sCommercial Code (Code de commerce) relating to the justificationof our assessments, we call your attention to the following elements:

• unconsolidated long-term equity holdings and equity portfoliosecurities are valued based on their fair value using a multi-criteria approach (note on the presentation and valuation rules –Banking and financial activities, and Notes 3A, 3B, 5A, 5B to thefinancial statements). As part of our assessment of these esti-mates, we examined the elements used to determine the fairvalues of the principal portfolio lines;

• the principles for constituting goodwill and recording it in thefinancial statements are defined in paragraph 3 of the consolida-tion principles and methods in the notes to the consolidatedfinancial statements. We verified that the approaches used werebased on assumptions that were consistent with the forecastdata in the plans established by the group;

• certain technical items specific to the insurance businesses, onboth the assets and liabilities sides of the consolidated balancesheet, notably technical provisions, were estimated based onstatistical and actuarial considerations, as presented in the noteon the presentation and valuation rules – Insurance activities,and in Note 13 to the consolidated financial statements. We verified that the assumptions used in the calculation modelswere reasonable.

Our assessments have led us to the conclusion that these esti-mates are reasonable.

The assessments were made in the context of our audit of theconsolidated financial statements, taken as a whole, and thereforecontributed to the formation of the unqualified opinion expressedin the first part of this report.

3 – Specific verificationWe also examined the financial information provided in the annualreport. We have no observations to make as to the fairness of thatinformation and its conformity with the consolidated financialstatements.

Paris and La Défense, May 16, 2005

The Independent Auditors

PricewaterhouseCoopers Audit Mazars & GuérardGérard Hautefeuille Mazars

Guillaume Potel Denis Grison

This is a free translation into English of the Auditors' report issued in the French language and is provided solely for the convenience of English speaking readers. TheAuditors' report includes information specifically required by French law in all audit reports, whether qualified or not, and this is presented below the opinion on theconsolidated financial statements. This information includes an explanatory paragraph discussing the auditors' assessments of certain significant accounting and audi-ting matters. These assessments were considered for the purpose of issuing an audit opinion on the consolidated financial statements taken as a whole and not toprovide separate assurance on individual account captions or on information taken outside of the consolidated financial statements. This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards applicable in France.


CENTRAL SECTOR

(Euro millions) Notes 12.31.2004 12.31.2003

ASSETSInterbank and similar transactions 30,427 26,388

Cash, central banks and post office banks 1 1

Public-sector securities and similar 3 18,458 17,930

Advances and loans to financial institutions 1 11,968 8,457

Customer transactions 2 2,691 16,624

Overdrafts 646 702

Other loans to customers 2,045 15,922

Bonds, equities, other fixed and variable income securities 58,151 38,969

Bonds and other fixed income securities 3 46,759 30,083

Equities and other variable income securities 3 11,392 8,886

Long-term equity holdings 8,967 9,648

Long-term equity holdings 4 et 5 8,967 9,648

Intangible fixed assets 6 62 57

Tangible fixed assets 6 1,655 1,579

Other assets 7 335 367

Accruals and deferrals 7 224 62

TOTAL ASSETS/LIABILITIES 102,512 93,694

LIABILITIESInterbank and similar transactions 25,162 21,948

Central banks and post office banks 13 46

Advances and loans from financial institutions 8 25,149 21,902

Customer transactions 9 47,822 46,585

Customer deposits 28,502 26,476

Other customer advances and loans 19,320 20,109

Debt securities 10 3,327 1,284

Interbank and negotiable debt securities 3,327 1,284

Other liabilities 11 13,427 12,547


Provisions for risks and charges 12 692 743

Subordinated debt 2 2

Fund for General Banking Risks (FGBR) 13 608 608

Retained earnings (excluding FGBR) 13 11,382 9,864

Reserves 9,250 8,803

Revaluation adjustments 34 34

Regulatory provisions and investment subsidies 8 18

Other retained earnings 35 35

Income for the year 2,460 974

Interim dividend (405)

Balance sheet

67

Off-balance sheet commitments

(Euro millions) 12.31.2004 12.31.2003

Financing, guarantee and securities commitments given


To financial institutions (1) 137 15

To customers (2) 26,042 1,709

Guarantee commitments

To financial institutions 1,178 1,137

To customers (3) 3,288 5,097

Securities commitments

Securities to be delivered 5

Financing, guarantee and securities commitments received


From financial institutions (4) 12,388 11,256

Guarantee commitments

From financial institutions (5) 2,773 4,805

From customers 1,001 1,478

From the State 356

Securities commitments

Securities to be received 827 306

Commitments given and received on forward financial instruments (6)

Commitments given

Futures transactions 72,678 58,017

Options 1,180 3,429

Commitments received

Futures transactions 72,751 58,125

Options 1,134 3,079

Other commitments given and received

Other commitments given 378 371

Other commitments received 10 10

Off-balance sheet commitments relative to spot and forward foreign currency transactions and to the lending and borrowing of foreign currencies are described in Note 16.(1) Including commitment given in favor of the Savings Funds Division for €124 million on subsidized loans in connection with the renovation of the stock of publichousing for rental. A provision for risks and charges has been booked for €80 million, after discounting (see Note 12). (2) Including commitment given in favor of ACOSS for €25 billion. The commitment was unused at December 31, 2004 following the transfer of ACOSS’s debt to CADESat the year end. In 2003, the difference between the commitment (€15 billion) and the amount utilized (€14.13 billion) was €871 million.(3) The reduction in guarantee commitments given to customers of €1,809 million is due mainly to a drop in counter-guarantee commitments on mutual funds of €1,991 million.(4) The financing commitments received from financial institutions all concern the liquidity commitments towards the CNCE.(5) The reduction in guarantee commitments received from financial institutions of €2,032 million is due to a drop in commitments received on the Ixis corporate mutualfunds (down from €4,778 million in 2003 to €2,749 million in 2004).(6) Revised presentation in 2004 of commitments given and received on forward financial instruments. In 2003, such commitments were shown only in Note 17.


CENTRAL SECTOR

(Euro millions) Notes 12.31.2004 12.31.2003

Interest and similar revenues 1,969 2,116

Treasury and interbank transactions 20 189 216

Customer transactions 21 355 235

Bonds and other fixed income securities 22 1,228 1,255

Other interest and similar revenues 23 197 410

Interest and similar expenses (1,272) (1,388)

Treasury and interbank transactions 20 (344) (406)

Customer transactions 21 (673) (510)

Bonds and other fixed income securities 22 (250) (49)

Other interest and similar expenses 23 (5) (423)

Revenues from variable income securities 24 1,108 511

Commissions (revenues) 25 18 16

Commissions (expenses) 25 (31) (40)

Gains (losses) on trading transactions 26 (29) (1)

Gains (losses) on available-for-sale security transactions and similar 27 476 469

Other net operating banking revenues (expenses) 28 (47) (72)

NET BANKING INCOME 2,192 1,611

Operating expenses 29 (289) (287)

Payroll expenses (413) (387)

Other administrative expenses (199) (220)

Rebillings 322 320

Other operating revenues and expenses 1

Amortization, depreciation and provisions on tangible and intangible fixed assets 30 (55) (48)

GROSS INCOME FROM OPERATIONS 1,848 1,276

Cost of risk 31 (82) (47)

NET INCOME FROM OPERATIONS 1,766 1,229

Gains (losses) on fixed assets 32 940 (30)

RECURRING INCOME BEFORE INCOME TAX 2,706 1,199

Net non-recurring income (expenses)

Income tax 33 (256) (227)

Net movement in FGBR and other regulatory provisions 34 10 2

NET INCOME 2,460 974

Income statement

69

Highlights

1 – Caisse des Dépôts and Caisse d’Epargne Group sign partnershipRestructuring agreement In accordance with their October 1, 2003 memorandum ofunderstanding, Caisse des Dépôts and Caisse d’EpargneGroup significantly restructured their partnership on a new andsustainable basis. Under the agreement signed May 27, 2004,Caisse des Dépôts contributed its 50.1% equity interest inEULIA and its 43.55% stake in its investment banking and assetmanagement subsidiary CDC Ixis to CNCE. These contributionsmake Caisse d’Epargne Group a universal bank, with Caissedes Dépôts as its strategic partner through a 35% equity inter-est in CNCE, alongside the Caisses d’Epargne. This agreementsecures the partnership between the two groups, which pledgeto maintain their relative ownership interests in CNCE constantuntil any potential initial public offering. The agreement clarifiestheir respective roles within the new entity:

• CNCE, which is 65%-owned by Caisses d’Epargne and 35%by Caisse des Dépôts, is responsible for steering the retail andinvestment banking businesses represented mainly by Ixis.

• Caisse des Dépôts has strengthened its role as a strategicshareholder of CNCE and its role as a long-term investor bytaking direct control of CDC Ixis’s proprietary portfolios (listedshares, private equity, real estate assets), for a total of €3.4 billion.

The transaction’s financial structuring resulted in a €3.3 billionissue of cooperative investment certificates by the 29 regionalsavings banks (Caisses d’Epargne) in mainland France,reserved specifically for CNCE. Following the issue of these cer-tificates, CNCE held a 20% stake in the regional savings banks.

Thus CNCE, directly, and Caisse des Dépôts, through its owner-ship interest in CNCE, have an interest in the business of theregional savings banks, which currently account for more than65% of the earnings of the Caisse d’Epargne Group.

As part of this transaction, during the first six months of 2004, theCentral Sector sold its equity interest in CDC Ixis for €3.2 billion,thereby generating a capital gain of €981.7 million; it also acquiredthe listed equities portfolio of CDC Ixis for €2.1 billion and theequity interest in Sogeposte for €41.6 million.

In the second half of 2004, the Central Sector — through its sub-sidiary CDC Entreprises, whose capital was increased by €800 million — finalized the acquisition of the private equityassets and a 65% controlling interest in CDC Entreprises CapitalInvestissement (formerly CDC Ixis Private Equity), with the bal-ance being held by CNCE. The Central Sector also acquired CDCIxis’s ownership interests in the real estate companies Foncièredes Pimonts (sold on to Icade), Logistis and AIH France.

2 – Acquisition of Société nationale immobilièreIn the first half of 2004, Caisse des Dépôts purchased from theFrench State an additional 74% interest in SNI (Société nationaleimmobilière), thereby bringing its total ownership interest to99.97%. This company manages real estate assets held for itsown account and for third parties.

This €519 million investment is the subject of an earn-out clause,under which Caisse des Dépôts could pay a maximum additionalamount of €58.8 million based on indicators for the period from2004 to 2007. At end-2004, the additional purchase price to bepaid totaled €7.4 million.

3 – TaxationTwo factors had an impact on the low level of tax recorded bythe Central Sector:

– first, the capital gain on the sale of the direct interest in CDC Ixisis only subject to tax after an adjustment of €605 million, whichcorresponds mainly to the unrealized capital gains alreadytaxed on the mutual funds contributed to CDC Ixis at the timeof its creation;

– second, the Marini amendment to the revised 2004 budget callsfor gradually reducing the capital gains tax on long-term equityholdings. The Central Sector thus recorded a €101 million rever-sal of a provision for capital gains tax payable on a deferred basis.

Accounting principles used in preparing the financial statements

The financial statements for the year ended December 31, 2004have been prepared in accordance with generally acceptedaccounting principles applicable to French banking and financialinstitutions.

The financial statements are presented in accordance with CRC Standard 2000-03 related to the preparation of individualcompany accounts by undertakings governed by the CRBF (theFrench Banking and Financial Regulations Committee).

Notes to the financial statements


CENTRAL SECTOR

The accounting principles and valuation methods used are iden-tical to those used to prepare the financial statements for theyear ended December 31, 2003, with the exception of the fol-lowing points:

I – Changes in accounting methodsAsset depreciation and amortization

CRC Standard 2002-10 of December 12, 2002 regarding thedepreciation and amortization of assets applies to the fiscalyears beginning on or after January 1, 2005.

The Central Sector opted not to apply this regulation in advance,nor to make use of the possibility allowed under the standard ofapplying the components method for depreciating replacementand major repair expenses during the transition period.Nevertheless, beginning January 1, 2003, in accordance withthe transition measures outlined in article 15 of the standard andruling 2003-F by the CNC (the French National AccountingBoard) Urgent Issues Task Force, the Central Sector did notestablish provisions for major repairs nor apply the componentsapproach for so-called category 1 replacement expenses.

As for so-called category 2 major repair expenditures, provi-sions for major repairs have been established (see Note 12).

II – Presentation and accounting policies

1 – Income statement items

Interest and commissions classified as such are recorded on anaccruals basis. Commissions not classified as interest arerecorded on a cash basis.

2 – Foreign-currency-denominated transactions

Foreign-currency-denominated assets, liabilities and off-balancesheet commitments have been translated at the exchange ratesin effect on December 31, 2004.

Currency gains and losses from ordinary currency transactionsare recorded in the income statement.

Spot foreign exchange transactions are valued at the spot rate.Forward currency transactions, other than hedging, are valuedat the forward rate of the remaining period. Forward currencytransactions for hedging purposes are valued by symmetry withthe item hedged.

Premiums and discounts related to hedged foreign currencytransactions are taken as income and expenses over the periodremaining until the maturity of these transactions.

3 – Advances and loans to financial institutions and customers

These items include loans, overdrafts and securities purchasedunder collateralized and uncollateralized fixed resale agreements.

LoansThe accounting provisions of CRC Standard 2002-03 relative tocredit risk in companies subject to CRBF regulations apply to allloans and advances.

Loans are recorded as assets in the balance sheet at redemp-tion value. Accrued interest is recognized as income over the lifeof the loan.

Loans are classified as non-performing when a recognizedcredit risk arises, in other words once it becomes likely that partor all of the amounts due under the loan agreement will not bereceived, notwithstanding the existence of a guarantee ordeposit. In any event, non-performing loans include those forwhich payments are more than three months past due (sixmonths for real estate loans and nine months for loans to localgovernments), those where the deterioration of the counter-party’s financial situation creates the risk of non-recovery andthose that are the subject of a legal dispute.


For accounting purposes, irrecoverable non-performing loansare recognized separately. These include those loans for whichthe counterparty’s solvency is such that after the loans havebeen classified as non-performing for a reasonable amount oftime, no reclassification to performing loans is foreseeable;loans for which an acceleration clause has been triggered; andsome loans classified as non-performing for more than one year,i.e. those presenting irrecoverable characteristics and for whicha provision must be established and those for which a futuretransfer to loss is foreseeable. This assessment must be per-formed after taking into account existing loan guarantees.

Non-performing loans and irrecoverable loans may be reclassi-fied as performing loans when payments have resumed in asteady fashion for the amounts corresponding to the originalcontractual payment schedule and once the counterparty nolonger presents a default risk. They may also be classified asrestructured loans if debt has been rescheduled and followingan observation period.

For loans with recognized credit risk exposure, provisions areestablished to cover all projected losses on loans classified asnon-performing or irrecoverable. A full provision is establishedon all outstanding, accrued and unpaid interest.

Once the loan is deemed to be definitively irrecoverable, a loss isrecorded.

71

Restructured loans at below market rates are broken out sepa-rately, where applicable, in a specific sub-category for perform-ing loans. At the time of the restructuring, the loan is recorded atnominal value less a discount, booked to cost of risk, corre-sponding to the amount of forfeited interest. This interest differ-ential is accounted for in the lending margin over the life of theloan concerned.

Securities purchased under collateralized and uncollateralized fixed resale agreementsThese securities are recorded as assets in the balance sheet onthe line representing the receivable arising from the transaction.The corresponding income is recognized on an accruals basis.Securities received as collateral and subsequently sold arerecorded as liabilities and valued at market value.

4 – Securities and securities transactions

Securities are classified under five accounting categories corre-sponding to the institution’s activities.

Trading securitiesTrading securities include in particular Treasury bills and nego-tiable debt securities. They are expected to be held for periodsnot exceeding six months. They are highly liquid and are markedto market. Changes in market value are recognized in theincome statement.

Available-for-sale securitiesAvailable-for-sale securities represent securities that are not tobe held until maturity or for trading purposes. They also includetrading securities reclassified after being held for a period ofmore than six months. In this case, the reclassification is madeat market value on the date of the transfer.

Available-for-sale securities are treated according to the FIFOmethod and are valued as follows:

• Bonds and equities: unrealized losses calculated based ontheir year-end closing price are taken to expenses through aprovision for impairment.

• Treasury bills, negotiable debt securities, and interbankinstruments: provisions are made on the basis of the indi-vidual situation of the issuer and market indicators.

Any premiums and discounts are written off over the residual lifeof the asset on a yield-to-maturity basis for negotiable debtsecurities and on a straight-line basis for other securities.

Held-to-maturity securitiesThis portfolio comprises fixed income securities that areintended to be held until maturity, and financed with dedicatedlong-term resources or covered through hedging instruments.

Unrealized capital losses resulting from differences between bookand market values are not covered by provisions. However, ifapplicable, default risks are taken into account in determining thevalue of these securities at year-end.

The difference between the acquisition price and the redemp-tion value of the securities (premium or discount) is amortizedusing the yield-to-maturity method for negotiable debt securitiesand the straight-line method for other securities.

• Inflation-indexed French government bonds (OATs)Given the lack of specific regulations applicable to financial insti-tutions, the effect of indexation on the face value of inflation-indexed bonds may be accounted for: when the bond is sold ormatures; spread over the bond’s remaining life, or recognized asincome or expense for the period.

Effective December 31, 2003, the Central Sector decided torecord as income or expense any gains or losses related to theindexation of the bond’s face value to inflation, by analogy to theaccounting treatment prescribed by article R332-19 of theFrench Insurance Code, as amended by decree No. 2002-1535of December 24, 2002.

The accounting provisions of CRC Standard 2002-03 relative tocredit risk in companies subject to CRBF regulations apply,where appropriate, to credit risk for held-to-maturity securities.

Portfolio securities (TAP)Portfolio securities are investments made on a regular basis withthe aim of realizing a capital gain in the medium term but withoutthe intention of investing on a long-term basis in the develop-ment of the business or taking an active part in the operationalmanagement of the issuing undertaking. These securities arerecorded at the lower of cost or fair value.


Subsidiaries and affiliatesShares in subsidiaries and affiliates are recorded at acquisitioncost.

They are valued on the basis of their fair value, with reference tovarious criteria such as net assets, share price, and capitaliza-tion of earnings. Provisions are booked to reflect any permanentimpairment in fair value.

Lending and borrowing of securitiesSecurities are valued using the rules applicable to the portfolio oforigin.

Borrowed securities are recorded as an asset under tradingsecurities at their market value on the day they were borrowed,and as a liability to recognize the debt towards the lender. Theyare valued on the basis of their market value on the closing date.


CENTRAL SECTOR

Loans and borrowings guaranteed by cash and notes aretreated in the same way as collateralized resale agreements.

Income from these transactions is recognized on an accrualsbasis in the income statement.

5 – Forward financial instruments

In application of the strategy defined for the development of itstrading activities and the management of market risks, Caissedes Dépôts operates on all organized and over-the-countermarkets for interest rate, currency and equity futures andoptions, in France as well as abroad. These transactions areentered into as part of:– specific or general hedging;

– the specialized management of trading portfolios.

For all of these instruments, whatever the management policypursued, the face value of the futures and options contracts, thevalue of the underlying assets or the exercise price is recordedoff-balance sheet. The method of accounting for expenses andrevenues on these instruments depends on the managementpolicy pursued.

The accounting provisions of CRC Standard 2002-03 relative tocredit risk in companies subject to CRBF regulations apply,where appropriate, to contracts traded over the counter.

The transposition into French Law of European “fair value” and“modernization” directives resulted in the implementation of CRCStandards 2004-14, 2004-15, 2004-16, 2004-17, 2004-18 and2004-19. Note 17 to the financial statements indicates the fairvalue (if it can be determined through reference to a market valueor the application of generally accepted models and methods)and information on the volume and type of instrument for eachcategory of derivative financial instrument.

Interest rate and currency swaps• Hedging transactions: expenses and revenues resulting

from hedging instruments (taken singly or as a homogeneousgroup) are recognized symmetrically with the revenues andexpenses resulting from the hedged transaction. Expensesand revenues from hedging instruments for non-specific risksare recorded on an accruals basis.

• Specialized portfolio management transactions: contractsare valued at year-end at their market value. In accordancewith regulations, the market value takes into account anadjustment for default risks and the discounted value of futuremanagement costs. The total net mark-to-market gain or lossis recognized in the income statement.

Other interest rate and currency transactionsThese transactions relate primarily to futures and options.

• Hedging transactions: expenses or revenues are recognizedin the income statement on a symmetrical basis with the rev-enues or expenses on the hedged transaction.

• Other transactions: these transactions are marked to mar-ket. Unrealized gains or losses at the closing date are recog-nized in the income statement.

In a departure from French regulations and in order to provide afair value of these instruments, those that are not highly liquidare also valued by reference to their theoretical market value.

Complex transactionsComplex transactions include derivatives, which combinerepackaged instruments of various types, characteristics andpricing 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 entryreflecting the substance of the transactions, as if they were a sin-gle instrument. In the case of totally new products, when notgoverned by explicit regulation, the accounting approach torecognition of any gains and losses is based on similar existingproducts.

The method of accounting for gains and losses depends on themanagement policy pursued:

• Hedging transactions: for reasons of prudence, notablywhen market liquidity is low, results are recorded on an accrualsbasis. A provision is made when market value is negative;

• Trading portfolio or transactions for which the result canbe considered as an arrangement fee: the result is recog-nized when the transaction is initiated. A discount is applied totake into account future management expenses and possibledefault risks.

Market valuesWhen the market price of the instruments or the valuationparameters are not officially quoted, alternative valuation meth-ods are used, making reference to one or more of the followingcriteria: price confirmation by brokers or outside counterparties,comparison with actual transactions and research by issuer orinstrument category.

When instruments are valued using models, these integrate theparameters that affect the valuation of the instruments, in par-ticular the liquidity level of the related markets. Applying a pru-dent approach, the calculations are adjusted to take account ofthe weaknesses of some of these parameters, in particular theirrelevance over a long period.

73

6 – Tangible and intangible fixed assets

Fixed assets are valued at cost. In the case of buildings, initialfixtures, fittings and installation expenditure may be added tothe cost of acquisition.

Depreciation is calculated using the straight-line method andaccording to the type and quality of the building, over its estimated useful life. Thus, buildings are depreciated over 20 to50 years. Partial renovation work on old buildings is depreciatedover periods of between 15 and 25 years.

Installations, improvements and fittings are generally depreci-ated over ten years. Software is generally depreciated over threeyears.

Forests are subject to provisions for impairment as required. Inthe event of an irreversible loss, an exceptional depreciationcharge is taken for the amount of the loss.

7 – Investment property risks

Caisse des Dépôts owns a large portfolio of rental propertiesheld as long-term investments. A provision is booked for anypermanent impairment in value of these properties as well asproperties earmarked for sale in the medium term. This provi-sion represents the difference between carrying value and mar-ket value. Market values for material investment properties aredetermined regularly by independent appraisers.

For interim reports, independent appraisers are not used sys-tematically. In those cases, the valuations used for the mostrecent independent appraisal are updated.

8 – Advances and loans from financial institutions and customer deposits

These liabilities include deposits, loans and securities sold undercollateralized and uncollateralized fixed repurchase agreements.

LoansLoans are recorded in the balance sheet at redemption value andaccrued interest is charged to income over the life of the loan.

Securities sold under collateralized fixed repurchase agreementsThe debt is recorded under liabilities. The securities are main-tained in their original portfolio and valued according to the rulesapplicable to that portfolio. The corresponding interest is recog-nized through the income statement as it is accrued.

9 – Debt securities

Debt securities are reported according to the type of security:interbank and negotiable debt securities (certificates of depositand medium-term notes).

Accrued interest is recorded on the same balance sheet line asthe debt security and is charged to income.


This heading includes:

– provisions for specifically identified risks related to bankingtransactions and financial instruments as well as losses relatedto certain business sectors;

– provisions for pension-related commitments correspondingmainly to retirement benefits and expenses related to theestablishment of a framework agreement in July 2002;

– provisions for risks and charges established in accordancewith CRC Standard 2000-06 regarding the accounting treat-ment for liabilities. These provisions are intended to cover risksand charges that are clearly defined but whose amount or tim-ing remains uncertain. The establishment of these provisions issubject to the existence of an obligation to a third party at theclosing date, and the absence of at least an equivalent consid-eration from this third party.These provisions also include those intended to cover fore-seeable charges related to known tax claims;

– a provision for deferred taxes related to rollover relief for shareexchange offers (offres publiques d’échange – OPE – mergers);

– provisions for major repairs established in accordance withCRC Standard 2002-10 related to the depreciation, amortiza-tion and impairment of assets.

11 – Pension and related commitments

In France, pension liabilities are generally covered by contribu-tions taken as expenses and paid to retirement or insurancefunds, which then handle pension payments, or paid to the gov-ernment in the case of civil servants.

Provisions are made for employee retirement benefits for eachcategory of employees based on collective bargaining agree-ments. These provisions are calculated using an actuarialmethod taking into account the age and seniority of the personnel,the mortality rate and probable remaining service with the company until retirement age and estimated future salary levels.The retirement age used in the calculations takes into accountthe provisions of the pension reform Law No. 2003-775 ofAugust 21, 2003.

This provision is adjusted on each closing date based on changesin the actuarial liabilities.

Commitments related to statutory long-service awards or Caissedes Dépôts long-service awards are calculated using the samemethod as it is used to determine commitments for retirementbenefits.


CENTRAL SECTOR

12 – Fund for General Banking Risks

This fund is constituted to cover operational risks and lossesarising from banking activities and the management of financialassets that are not covered by general or specific provisions.Transfers to and from this fund are debited or credited to theincome statement.

13 – Income taxes

Each year, the Central Sector makes a voluntary payment in lieuof taxes to the Treasury. The amount of this payment is equiva-lent to what would be its corporate income tax liability.

This amount is provisioned in the financial statements underincome taxes.

A provision for deferred taxes is calculated by applying the probable future tax rate to these transactions.

The deferred tax rates were 35.43% for the full rate and 20.20%for the reduced rate, unchanged from 2003.

The revised 2004 budget amended the tax rate for long-term cap-ital gains (15% as of 2005, 8% in 2006 and 0% after January 1,2007).

Tax information is provided in Note 33.

Note 1 – Interbank and similar transactions Advances and loans to financial institutions

(Euro millions) 12.31.2004 12.31.2003Current accounts (1) 9,956 6,233

Current accounts of savings funds 20 238


Sight amounts due from financial institutions 9,998 6,484

Cash advances 1,407 1,236

Term loans and advances (2) 1,402 1,231


Securities purchased under collateralized fixed resale agreements 135 320

Term loans and advances 135 318

Accrued interest 2

Other 428 417

Term loans and advances 427 380

Non-performing loans 10 13

Provisions (10) (13)


Subordinated loans (3) 35

Term amounts due from financial institutions 1,970 1,973

ADVANCES AND LOANS TO FINANCIAL INSTITUTIONS 11,968 8,457

(1) Including CNCE current account €3,741 million (2003: €550 million) (Ixis current account).(2) Including ICIB: €1,095 million.(3) CGW SAS loans at December 31, 2003 were repaid in 2004.

75

Note 2 – Customer transactions (assets)

(Euro millions) 12.31.2004 12.31.2003Overdrafts 645 697


Provisions (7) (7)

Overdrafts 646 702

Cash advances 386 14,303

Loans and related receivables (1) 378 14,286


Provisions (8) (12)

Accrued interest 14

Other loans 1,102 1,013

Loans to financial sector customers 21 36

Loans and related receivables (2) 1,040 911




Loans for infrastructure projects 358 374

Loans and related receivables 343 357




Loans for housing projects 130 174



Provisions (3) (2)


Subordinated loans 69 58



Provisions (1) (1)


Other loans to customers 2,045 15,922

CUSTOMER TRANSACTIONS (3) 2,691 16,624

Total at sight 646 702

Total at term 2,045 15,922

(1) The advance to Agence Centrale des Organismes de Sécurité Sociale (ACOSS) by Caisse des Dépôts was taken over by CADES in the second half of 2004. The average outstanding advance to ACOSS in 2004 was €12.4 billion (2003: €5.9 billion).(2) Including loans to Caisse des Dépôts group staff (€281 million) and to the legal profession (€499 million).(3) Non-performing loans total €154 million, including €78 million of irrecoverable non-performing loans.


CENTRAL SECTOR

Note 3 – Transactions on trading, available-for-sale, held-to-maturity and portfolio securities

A) BREAKDOWN BY NATURE AND TYPE OF PORTFOLIO

(Euro millions) 12.31.2004 12.31.2003Available- Held-to- Available- Held-to-

Trading for-sale maturity Portfolio Trading for-sale maturity Portfoliosecurities securities securities securities Total securities securities securities securities Total

Public-sector securities and similar 7,821(1) 740 4,886 13,447 7,827 351 5,686 13,864

Securities on loan 5,011 (1) 5,011 4,066 4,066Public-sector securitiesand similar 12,832 740 4,886 18,458 11,893 351 5,686 17,930

Bonds 50 (1) 1,021 6,666 7,737 26 649 6,578 7,253Other fixed income securities (2) 37,078 1,471 38,549 20,971 1,332 22,303

Securities on loan 473 473 527 527Bonds and other fixed income securities 50 38,099 8,610 46,759 26 21,620 8,437 30,083

Equities (3) 1,569 8,450 10,019 500 7,128 7,628

Mutual funds 1,322 49 1,371 1,142 114 1,256

Securities on loan 2 2 2 2Equities and other variable income securities 2,893 8,499 11,392 1,644 7,242 8,886

TOTAL BY TYPE OF PORTFOLIO 12,882 41,732 13,496 8,499 76,609 (4) 11,919 23,615 14,123 7,242 56,899

(1) Held against a loan from the Savings Funds Division (see Note 11).(2) The €16 billion increase is due mainly to investment of the funds from:

– the assumption by CADES of the ACOSS advance. As of December 31, 2004, ACOSS had a nil balance on its overdraft facility, compared with €14 billion as ofDecember 31, 2003;

– the issue of certificates of deposit for €2.6 billion.(3) The €2.4 billion increase is due mainly to the purchase on June 30, 2004 of the Ixis listed equity portfolio. The change in net value of portfolio securities is explained in Note 3B. (4) As of December 31, 2004 there were €17.7 billion of securities sold under collateralized fixed repurchase agreements (see Notes 8 and 9).

77


(Euro millions) 12.31.2004 12.31.2003Available- Held-to- Available- Held-to-

Trading for-sale maturity Portfolio Trading for-sale maturity Portfoliosecurities securities securities securities Total securities securities securities securities Total

Public-sector securities and similarGross value (1) 12,832 714 4,725 18,271 11,893 339 5,481 17,713Premiums/discounts 16 39 55 6 53 59Accrued interest 10 122 132 6 152 158Provisions 0 0Net book value 12,832 740 4,886 18,458 11,893 351 5,686 17,930Market value of trading and available-for-sale securities 12,832 761 11,893 361

Bonds and other fixed income securitiesGross value (1) 50 38,075 8,341 46,466 26 21,580 8,176 29,782Premiums/discounts 50 30 80 34 25 59Accrued interest (22) 239 217 13 236 249Provisions (4) (4) (7) (7)Net book value 50 38,099 8,610 46,759 26 21,620 8,437 30,083Market value of trading and available-for-sale securities 50 38,122 26 21,629

Equities and other variable income securitiesGross value (2) 2,988 9,814 12,802 1,716 8,768 10,484Accrued interest 1 13 14 3 3Provisions (3) (96) (1,328) (1,424) (72) (1,529) (1,601)Net book value 2,893 8,499 11,392 1,644 7,242 8,886Market value of available-for-sale securities and fair valueof portfolio securities 3,166 9,495 12,661 1,932 8,939 10,871

(1) The gross values shown for available-for-sale and held-to-maturity securities correspond to redemption values.(2) The €1,046 million increase during the year in portfolio securities was due mainly to the purchase of the Ixis portfolio (comprising acquisitions of €1,484 million,less disposals of €400 million and corporate actions of €38 million).(3) The net change in provisions against portfolio securities in 2004 was €200 million, comprising a reversal of €201 million and an exchange loss of €1 million.

Note 4 – Long-term equity holdings – Movements

12.31.2004

Acquisitions Disposals(Euro millions) 12.31.2003 Charges Reversals 12.31.2004

Long-term equity holdingsGross value 9,641 1,440 (2,341) 8,740Provisions (193) (26) 53 (166)Net book value 9,448 1,414 (2,288) 8,574

Advances and related receivablesGross value 367 213 (12) 568Provisions (167) (17) 9 (175)Net book value 200 196 (3) 393

LONG-TERM EQUITY HOLDINGS 9,648 1,610 (2,291) 8,967

The main movements during the year are shown in Note 5.


CENTRAL SECTOR

Note 5 – Principal long-term equity holdings

(Euro millions) 12.31.2003 12.31.2004Change in

Long-term Advances Long-term advances Advances Netequity and related Securities Securities equity and related and related book

holdings receivables acquired sold holdings receivables receivables value %Long-term equity holdings Gross value Gross value in 2004 in 2004 Gross value in 2004 Gross value Provisions (1) in 2004 held

Principal long-term equityholdings and movements

AREVA 360 360 360 3.6

BDPME 193 193 193 43.7

CAISSE DES DEPOTS DEVELOPPEMENT - C3D 971 44 971 150 194 1,165 100

CDC HOLDING FINANCES(formerly SODEVE) 2,907 2,907 2,907 100

CDC IXIS 2,227 (2,227)

CDC IXIS ITALIA HOLDING 44 27 (71)

CDC KINEON 100 100 (25) 75 100

CDC ENTREPRISES (capital increase) 404 800 1,204 1,204 100

CNP ASSURANCES (2) 737 737 737 36.5

COMPAGNIE NATIONALE DU RHONE 207 207 207 29,4

DEXIA CREDIT LOCAL DE FRANCE (2) 944 944 944 6.0

EUROPEAN INVEST. FUND 15 15 15 0.8

FINANCE GESTION INVESTISSEMENT (FGI) (capital reduction) 34 (32) 2 2 22.2

GALAXY SARL 25 (2) 23 23 60

SCIC HABITAT 18 128 18 128 (10) 136 40.7

SCIRZAC 53 5 53 9 14 (38) 29 100

SICOVAM HOLDING 51 51 51 8.8

THEATRE DES CHAMPS-ELYSEES 54 2 54 2 (36) 20 100

SNI 56 526 582 582 99.97

SOGEPOSTE 42 42 42 49.0

SOFARIS 140 13 153 (153)

SCI ILE-DE-FRANCE n° 2 24 24 24 89.3

Total principal long-term equity holdings,advances and related receivables 9,400 319 1,395 (2,332) 8,463 196 515 (262) 8,716Other long-term equity holdings, advances and related receivables 241 48 45 (9) 277 5 53 (79) 251

TOTAL LONG-TERM EQUITY HOLDINGS,ADVANCES AND RELATED RECEIVABLES 9,641 367 1,440 (2,341) 8,740 201 568 (341) 8,967

(1) Comprising provisions of €166 million against securities and €175 million against related receivables.As part of the Restructuring of CDC Ixis/CNCE:– disposal of the entire Ixis holding (book value of €2,227.5 million, gain of €981.7 million);– purchase from CNP of its holding in CIIH for €27.1 million, followed by disposal of the entire CIIH holding (book value of €71.4 million, loss of €7.2 million);– acquisition from Ixis of 49% of the capital of Sogeposte for €41.6 million;– CDC Entreprises capital increase of €800 million;– payment of a €150 million advance to C3D enabling its subsidiary Icade to finance the acquisition of Foncière des Pimonts.(2) Listed investments.

79

Note 6 – Tangible and intangible fixed assets

A) MOVEMENTS12.31.2004

Acquisitions Disposals(Euro millions) 12.31.2003 Charges Reversals Transfers 12.31.2004Tangible operating fixed assets

Fixed assets in progress 25 23 (1) (18) 29

Land, buildings and fixtures 209 (20) (1) 18 206

Gross value (1) 455 (83) 18 390

Depreciation and provisions (1) (246) (20) 82 (184)

Furniture, equipment and tools, net 10 (2) 1 9

Gross value 67 2 69

Depreciation and provisions (57) (4) 1 (60)

Tangible operating fixed assets, gross 547 25 (84) 488


Tangible operating fixed assets, net 244 1 (1) 244

Investment properties 240 (5) (10) 225

Investment properties in progress 1 3 (1) 3

Land and buildings, net (2) 219 (8) (10) 1 202

Gross value 340 (27) 1 314


Forests and undeveloped land 20 20Investment properties held by SPIPL, net (3) 1,095 473 (382) 1,186

Gross value + related receivables 1,118 473 (383) 1,208

Provisions (23) 1 (22)

Investment properties, gross 1,479 476 (410) 1,545Depreciation and provisions (144) (8) 18 (134)Investment properties, net 1,335 468 (392) 1,411

TANGIBLE FIXED ASSETS, GROSS 2,026 501 (494) 2,033

DEPRECIATION AND PROVISIONS (447) (32) 101 (378)

TANGIBLE FIXED ASSETS, NET 1,579 469 (393) 1 655

Intangible fixed assets in progress: software 38 37 (40) 35

Licenses, software and Internet, net 19 (31) (1) 40 27

Gross value 113 (1) 40 152

Amortization and provisions (4) (94) (31) (125)

INTANGIBLE FIXED ASSETS, GROSS 151 37 (1) 187

AMORTIZATION AND PROVISIONS (94) (31) (125)

INTANGIBLE FIXED ASSETS, NET 57 6 (1) 62

Tangible operating fixed assets: €244 million.(1) The disposals and depreciation reversals totaling €82 million correspond to the write-off of fixtures and fittings acquired over ten years ago and with a net bookvalue of zero.

Investment properties: €1,411 million.(2) Disposal of the Rueil-Malmaison building (net book value of €3.6 million, gain of €7.2 million).

Disposal of office buildings (net book value of €11.8 million, gain of €0.3 million).Scrapping of fixtures and fittings acquired over ten years ago (net book value of nil, gain of €5.5 million).Reversal of provisions on buildings for €5.9 million.

(3) Details of the SPIPL (sociétés propriétaires d’immeubles de placement - real estate investment companies) movements are shown in Note 6B.(4) The 2004 amortization charge comprises additional software amortization relating to prior years.


CENTRAL SECTOR

Note 6 (cont’d)

B) PRINCIPAL SPIPL LONG-TERM EQUITY HOLDINGS

(Euro millions) 12.31.2003 12.31.2004Change inadvances Net

Advances Securities Securities Long-term and related Advances book SPIPL long-term equity holdings Long-term and related acquired sold equity receivables and related value (real estate investment companies) equity holding receivables in 2004 in 2004 holding in 2004 receivables Provisions 2004

Principal SPIPL long-term equity holdings and movements

AIH FRANCE 18 18 56 56 74

FONCIERE DES PIMONTS 197 (197)

ING DUTCH RETAIL FUND NV 21 21 21

ING DUTCH OFFICE FUND NV 15 15 15

LE MARQUIS SA (capital increase) 16 13 13 (13) 3 16

PROLOGIS PAN EUROPEAN FUND 25 25 25

SAS POINT DU JOUR 20 46 20 (3) 43 63

SAS TOUR DESCARTES 38 54 38 (4) 50 88

SASU DANTE 9 19 9 3 22 31

SASU FONAE (capital increase) 34 4 38 3 41

SASU LOGISITIS II (capital increase and reduction) 5 2 5 (3) 7 6 8 15

SCI BOUCICAUT (1) 67 0 (6) 61 61

SCI EURALILLE (S3C LILLE) 26 0 (2) 24 24

SCI FONDIS 4 11 4 3 14 18

SCI JEAN JAURES TOULOUSE 19 19

SITQ LES TOURS (capital reduction) 43 13 (28) 28 28

SCI LOGISTIS 39 39 24 24 63

SCI SILOGIS (1) 55 55 55

SCI SOCLE ARCHE DE LA DEFENSE 16 (1) 15 (9) 6

SCI TOUR LILLE 10 10 (3) 7

SOCIETE FONCIERE ANATOLE FRANCE 159 301 159 (12) 289 448

Total principal SPIPL long-term equity holdings, advances and related receivables 373 623 289 (228) 434 51 696 (12) 1,118Other SPIPL long-term equity holdings,advances and related receivables (1) 55 67 55 (22) 23 (10) 68

TOTAL SPIPL LONG-TERM EQUITY HOLDINGS, ADVANCES AND RELATED RECEIVABLES 428 690 289 (228) 489 29 719 (22) 1,186

(1) Long-term equity holdings < €1 million.

81


(Euro millions) 12.31.2004 12.31.2003Deferred charges 3

Prepaid expenses 2 1

Accrued income 11 5

Currency and forward financial instrument adjustment accounts (1) 190 16

Other 21 37

Accruals and deferrals 224 62

Premiums on purchases of options 6

Miscellaneous receivables 300 327

Settlement accounts on securities transactions 6 9

Inventories and similar (forests) 37 37

Impairment provisions (8) (12)

Other assets 335 367

ACCRUALS, DEFERRALS AND OTHER ASSETS 559 429

(1) The movement in currency and forward financial instrument adjustment accounts is due to the higher volume of forward financial instruments.

Note 8 – Interbank and similar transactionsAdvances and loans from financial institutions

(Euro millions) 12.31.2004 12.31.2003Current accounts 5,236 2,584

Current accounts of savings funds 1,257 1,751


Sight amounts due to financial institutions 6,506 4,336

Term loans and advances (1) 961 297

Securities sold under collateralized fixed repurchase agreements 17,626 17,198


Term amounts due to financial institutions 18,643 17,566

ADVANCES AND LOANS FROM FINANCIAL INSTITUTIONS 25,149 21,902

(1) The increase in term loans and advances relates mainly to CDC Holding Finances (€437 million) and Crédit Logement (€223 million).


CENTRAL SECTOR

Note 9 – Customer transactions (liabilities)

(Euro millions) 12.31.2004 12.31.2003Current accounts (1) 28,502 26,475

Accrued interest 1

Customer deposits 28,502 26,476

Loans from financial sector customers 173 152

Escrow accounts (consignations) 2,858 2,593

Term deposits (2) 15,702 16,908

Securities sold under collateralized fixed repurchase agreements 80

Other 3 3


Other customer advances and loans 19,320 20,109

CUSTOMER TRANSACTIONS 47,822 46,585

(1) The €2,027 million increase in current accounts is due mainly to ACOSS (€826 million), deposits by notaries (€1,282 million), deposits by other court-appointedrepresentatives and agents (€157 million) and a €233 million reduction in the FRR current account. The €28,502 million balance comprises mainly deposits by nota-ries (€19,521 million), other court-appointed representatives and agents (€2,562 million), Savings Funds Division (€1,237 million), FRR (€1,384 million) and ACOSS(€926 million). (2) The €1,206 million drop in term deposits is due mainly to reductions in the FRR term deposit (€229 million) and court-appointed representatives’ and agents’accounts (€386 million). The balance includes amounts due to FRR of €11,313 million.

Note 10 – Debt securities

(Euro millions) 12.31.2004 12.31.2003Negotiable medium-term notes 220 220

Other negotiable debt securities (1) 3,098 1,060


Interbank and negotiable debt securities 3,327 1,284

DEBT SECURITIES 3,327 1,284

(1) Including €2.6 billion in certificates of deposit issued in 2004.

83


(Euro millions) 12.31.2004 12.31.2003Deferred income 44 11

Accrued charges 34 66

Currency and forward financial instrument adjustment accounts 4

Other 12 32

Accruals and deferrals 90 113

Premiums on sale of options 2 10

Securities on loan (1) 12,882 11,919

Miscellaneous payables (2) 543 622

Accrued interest (4)

Other liabilities 13,427 12,547

ACCRUALS, DEFERRALS AND OTHER LIABILITIES 13,517 12,660

(1) Corresponding to securities on loan from the Savings Funds Division (see Note 3A).(2) Including supplier accounts (€132 million), tax (€65 million) and social security payables (€107 million).

Note 12 – Provisions for risks and charges

2004

Reversals Reversals(Euro millions) 12.31.2003 Charges used not used Other (1) 12.31.2004Provisions for employee-related charges 75 4 (19) 60

Retirement 21 2 23

Long-service awards 9 2 11

Framework agreement (2) 45 (19) 26

Provisions for real estate risks 25 (1) 1 25

PGR 17 17

Other 8 (1) 1 8

Provisions for default risks 86 84 (19) (2) 149

On signature commitments (3) 18 82 (5) 95

Other 68 2 (14) (2) 54

Provisions for deferred taxes (4) 526 (104) 422

Other provisions for risks and charges 31 9 (11) 7 36

Provisions on long-term equity holdings 26 6 (8) 7 31

Other 5 3 (3) 5

PROVISIONS FOR RISKS AND CHARGES 743 97 (19) (137) 8 692

(1) Other movements correspond to provisions relating to the State’s FRU holdings, which were taken over by Caisse des Dépôts on December 31, 2004.(2) Provisions for employee-related charges: the framework agreement expires on December 31, 2005. The €19 million reversal corresponds to amortization of the pro-vision booked when the framework agreement was put in place in 2002 and covers charges related to new entrants during the year. The provision as of December 31,2004 comprises €22 million for public-sector employees and €4 million for private-sector employees.(3) Provisions for default risks: includes €80 million in provisions for interest rate subsidies on housing improvement loans.(4) Deferred taxes on capital gains: this provision was raised initially to cover the tax payable on a deferred basis on transactions involving the exchange of securities. The Marini amendement to the revised 2004 French budget provides for the tax rate applicable to gains on the disposal of long-term equity holdings to bereduced progressively from 19% to nil by 2007. The 15% tax rate applicable in 2004 resulted in a reversal of €101 million.


CENTRAL SECTOR

Note 13 – Changes in retained earnings

Fund for Regulatory InterimGeneral provisions and Other dividend on Banking General Revaluation investment retained income for Income Retained

(Euro millions) Risks reserve reserve subsidies (1) earnings the year (2) for the year earnings

Retained earnings as of December 31, 2002 608 8,629 34 20 45 520 9,856

Appropriation of 2002 earnings 174 346 (520)

Distribution in 2003 of 2002 earnings (264) (264)

Other (2) (10) (12)

2003 earnings (82) 974 892

Retained earnings as of December 31, 2003 608 8,803 34 18 35 974 10,472

Appropriation of 2003 earnings 447 527 (974)

Distribution in 2004 of 2003 earnings (524) (524)

Other (10) (3) (13)

2004 earnings 2,460 2,460

Interim dividend (405) (405)

RETAINED EARNINGS AS OF DECEMBER 31, 2004 608 9,250 34 8 35 (405) 2,460 11,990

(1) The €10 million corresponds to reversal of the PCMLT provision, which is recorded outside the accounts from the 2004 fiscal year.(2) An interim dividend in respect of the 2004 fiscal year was paid to the French State on realization of the capital gain on disposal of Ixis as part of the Restructuring.

Dividends distributed in 2004 in respect of 2003 earnings were calculated as 33% of the Group’s share of consolidated net income,corresponding to €527.2 million, of which €524.3 million was paid to the State.

The balance of €2.9 million corresponded to an indemnity in respect of the Sagitrans receivable (loan guaranteed by the State).

Note 14A) ADVANCES AND LOANS TO FINANCIAL INSTITUTIONS

12.31.2004

Gross Gross Provisionsperforming non-performing deducted

(Euro millions) loans loans from assets TotalFrance 11,968 10 (10) 11,968

Breakdown by geographic region 11,968 10 (10) 11,968

3 months or less 11,935 10 (10) 11,935

3 months to 1 year 14 14

1 to 5 years 11 11

More than 5 years 8 8

Breakdown by term to maturity 11,968 10 (10) 11,968

Provisions booked (13) (13)

Reversals of unused provisions 3 3

Provisions deducted from assets (10) (10)

85

B) ADVANCES AND LOANS TO CUSTOMERS

12.31.2004

Gross Gross Gross Provisionsperforming non-performing irrecoverable deducted

(Euro millions) loans loans loans from assets TotalFrance 2,643 84 78 (114) 2,691

Breakdown by geographic region 2,643 84 78 (114) 2,691

3 months or less 1,633 82 75 (112) 1,678


1 to 5 years 431 1 2 (1) 433

More than 5 years 467 1 1 (1) 468

Breakdown by term to maturity 2,643 84 78 (114) 2,691

Provisions at January 1, 2004 (20) (81) (101)

Charges (21) (4) (25)

Reversals 6 6 12Reclassification from non-performing to irrecoverable (3) 3

Provisions deducted from assets (38) (76) (114)

C) FIXED INCOME SECURITIES (AVAILABLE-FOR-SALE AND HELD-TO-MATURITY SECURITIES)

12.31.2004

Provisionsdeducted

(Euro millions) Gross from assets TotalEuro 51,127 (4) 51,123

US dollar 67 67

Other 1,145 1,145

Breakdown by currency 52,339 (4) 52,335

3 months or less 8,053 (2) 8,051

3 months to 1 year 26,848 (2) 26,846

1 to 5 years 2,813 2,813

More than 5 years 14,625 14,625

Breakdown by term to maturity 52,339 (4) 52,335

AAA 17,313 (2) 17,311

AA 22,221 (2) 22,219

A 7,363 7,363

BBB 674 674

Not rated 4,768 4,768

Breakdown by rating 52,339 (4) 52,335

Provisions at January 1, 2004 (7) (7)

Charges (2) (2)

Reversals of unused provisions 5 5

Provisions deducted from assets (4) (4)


CENTRAL SECTOR

Note 15A) BALANCE SHEET ITEMS BY CURRENCY

US Pound Japanese Total(Euro millions) Euro dollar sterling yen Other 12.31.2004

ASSETSAdvances and loans to financial institutions 10,093 339 11 1,179 346 11,968

Advances and loans to customers 2,691 2,691

Trading securities

Public-sector securities and similar 12,832 12,832

Bonds and other fixed income securities 50 50

Available-for-sale securities

Public-sector securities and similar 597 143 740

Bonds and other fixed income securities 37,039 58 1,002 38,099

Held-to-maturity securities

Public-sector securities and similar 4,886 4,886

Bonds and other fixed income securities 8,601 9 8,610

LIABILITIESAdvances and loans from financial institutions 21,793 722 797 1,177 660 25,149

Customer deposits and advances 47,692 13 1 116 47,822

Debt securities

Other fixed income securities 3,033 262 32 3,327

B) BALANCE SHEET ITEMS BY TERM TO MATURITY

3 months 3 months 1 to More than Total(Euro millions) or less to 1 year 5 years 5 years 12.31.2004

ASSETSAdvances and loans to financial institutions 11,935 14 11 8 11,968

Advances and loans to customers 1,678 112 433 468 2,691

Available-for-sale securities

Public-sector securities and similar 143 597 740

Bonds and other fixed income securities 7,772 26,417 1,982 1,928 38,099

Held-to-maturity securities

Public-sector securities and similar 621 4,265 4,886

Bonds and other fixed income securities 279 285 211 7,835 8,610

LIABILITIESAdvances and loans from financial institutions 23,084 2,000 65 25,149

Customer deposits and advances 41,218 6,563 41 47,822

Debt securities

Other fixed income securities 3,327 3,327

87

Note 16 – Off-balance sheet commitments relative to spot and forward foreign currency transactions and to the lending and borrowing of foreign currencies

(Euro millions) 12.31.2004 12.31.2003Spot transactions

Euros purchased to be received 2 4

Foreign currencies purchased to be received 12 2

Euros sold to be delivered 12 2

Foreign currencies sold to be delivered 2 4

Forward transactions

Euros to be received against foreign currencies to be delivered

Euros to be received 2,477 1,587

Foreign currencies to be delivered 2,366 1,569

Foreign currencies to be received against euros to be delivered

Foreign currencies to be received 1,051 736

Euros to be delivered 973 739

Unaccrued premiums/discounts

To be received 12 3

To be paid 3

Note 17 – Forward financial instruments

12.31.2004Trading Treasury/Hedging

Commitments Commitmentsgiven Commitments given Commitments

Purchase/ received Purchase/ received(Euro millions) Borrowing Sale/Loan Borrowing Sale/Loan

FUTURES TRANSACTIONSOrganized markets

Interest rate contracts 92 92

Other 74

Over-the-counter markets

Interest rate swaps (1) 40,183 40,183 32,402 32,402

Fair value 5,803 5,803 359 423

OPTIONSOver-the-counter markets

Caps, floors 829 829 351 305

Fair value

(1) For the most part, these mirror instruments contributed to CDC Ixis.


Note 18 – Credit risks

SIGNATURE RISKS12.31.2004

Gross (Euro millions) performing loans TotalFrance 30,965 30,965

Rest of Europe 63 63

Total by geographic region 31,028 31,028

FORWARD FINANCIAL INSTRUMENTS (OVER-THE-COUNTER TRANSACTIONS)BREAKDOWN OF COMMITMENTS RECEIVED (SALE/LOAN)

12.31.2004

Gross (Euro millions) performing loans TotalFrance 45,893 45,893

Rest of Europe 26,485 26,485

United States 959 959

Asia 382 382

Total by geographic region 73,719 73,719

Note 19 – Forward financial instruments

12.31.2004

By currency US Japanese Swiss (Euro millions) Euro dollar yen franc Total

FUTURES TRANSACTIONSInterest rate contracts 184 184

Interest rate swaps – borrower 67,849 14 4,236 486 72,585

Interest rate swaps – lender 67,849 14 4,236 486 72,585

Other 42 32 74

OPTIONSCaps, floors given 1,144 36 1,180

Caps, floors received 1,098 36 1,134

12.31.2004

By term to maturity 3 months 3 months 1 to More than (Euro millions) or less to 1 year 5 years 5 years Total

FUTURES TRANSACTIONSInterest rate contracts 184 184Interest rate swaps – borrower 26,718 22,218 6,820 16,829 72,585Interest rate swaps – lender 26,718 22,218 6,820 16,829 72,585Other 74 74

OPTIONSCaps, floors – borrower 1,180 1,180Caps, floors – lender 1,134 1,134

CENTRAL SECTOR

89

Note 20 – Interest and similar revenues and expenses on treasury and interbank transactions

(Euro millions) 12.31.2004 12.31.2003Interest on central bank and post office bank accounts 18 15

Interest on current account advances 104 96

Interest on other loans and securities purchased under uncollateralized fixed resale agreements 32 69

Interest on securities purchased under collateralized fixed resale agreements 5 15

Premium/discount income 18 10

Other interest and similar income 12 11

INTEREST AND SIMILAR REVENUES ON TREASURY AND INTERBANK TRANSACTIONS 189 216

Interest on current accounts (66) (50)

Interest on loans and securities sold under uncollateralized fixed repurchase agreements (8) (9)

Interest on securities sold under collateralized fixed repurchase agreements (260) (335)

Premium/discount expenses (4) (6)

Other interest and similar expenses (6) (6)

INTEREST AND SIMILAR EXPENSES ON TREASURY AND INTERBANK TRANSACTIONS (344) (406)

Note 21 – Interest and similar revenues and expenses on customer transactions

(Euro millions) 12.31.2004 12.31.2003Interest on overdrafts (1) 272 139

Interest on loans to customers 72 76

Interest on cash advances 5 5

Interest on loans for infrastructure projects 17 21

Interest on loans for housing projects 8 20

Interest on other loans to customers 42 30

Interest on other loans and securities purchased under uncollateralized fixed resale agreements 5 14

Other interest and similar income 4 5

Doubtful interest receivables 2 1

INTEREST AND SIMILAR REVENUES ON CUSTOMER TRANSACTIONS 355 235

Interest on current accounts (265) (239)

Interest on escrow accounts (consignations) (32) (35)

Interest on term deposits, borrowings and securities sold under uncollateralized fixed repurchase agreements (2) (374) (220)

Interest on securities sold under collateralized fixed repurchase agreements (2) (14)

Other interest and similar expenses (2)

INTEREST AND SIMILAR EXPENSES ON CUSTOMER TRANSACTIONS (673) (510)

(1) Including €269 million received from ACOSS (2003: €136 million). The movement in interest revenues is due to the higher average amounts due from ACOSS, whichrose from €5.9 billion in 2003 to €12.4 billion in 2004. (2) Including €289 million paid to FRR (2003: €96 million). The movement in interest expenses is due to the higher average amounts due to FRR, which rose from €4.7 billion in 2003 to €14.6 billion in 2004.


CENTRAL SECTOR

Note 22 – Interest and similar revenues and expenses on bonds and other fixed income securities

(Euro millions) 12.31.2004 12.31.2003

Interest and similar revenues on available-for-sale securities (1) 441 382Public-sector securities 16 45Bonds 23 27Other fixed income securities 402 310Interest and similar revenues on held-to-maturity securities (2) 787 873Public-sector securities 329 386Bonds 375 404Other fixed income securities 83 83

INTEREST AND SIMILAR REVENUES ON BONDS AND OTHER FIXED INCOME SECURITIES 1,228 1,255Interest on negotiable certificates of deposit (18)Interest on negotiable medium-term notes (5) (42)Interest and expenses on bonds (8) (7)Other interest expenses (3) (219)

INTEREST AND SIMILAR EXPENSES ON BONDS AND OTHER FIXED INCOME SECURITIES (250) (49)

(1) Revenues on available-for-sale securities are linked to the expansion of the securities portfolio made up, in the main, of negotiable debt securities.(2) The decline in interest revenues is due to the lower investment level in 2004 given the unfavorable trend in long-term interest rates and the high level of redemptions during the year.(3) This expense is offset by the income on swaps (Note 23) and relates to the final maturity of a structure put in place with ICIB.

Note 23 – Other interest and similar revenues and expenses

(Euro millions) 12.31.2004 12.31.2003

Micro-hedging 196 409Interest-rate swaps (1) 195 379Financial swaps 6Caps 1 2Multi-currency exotic swaps (2) 7Equity options (3) 15Trading 1Securities lending 1Revenues/liabilities represented by securities 1

OTHER INTEREST AND SIMILAR REVENUES 197 410Micro-hedging (418)Interest-rate swaps (389)Financial swaps (5)CapsMulti-currency exotic swaps (2) (7)Equity options (3) (17)Trading (5) (5)Securities lending (5) (5)

OTHER INTEREST AND SIMILAR EXPENSES (5) (423)

(1) This income, offset by the expense on fixed income securities (Note 22), relates to the final maturity of a structure put in place with ICIB.(2) Micro-hedging transaction related to the changeover to the Euro (swap of an In currency against an In currency) matured in 2003.(3) Hedging option on equities: following the drop in the market in 2003, these transactions were discontinued in 2004.

Interest and similar revenues and expenses are shown net as of December 31, 2004 by type of hedging swap.

91

Note 24 – Revenues on variable income securities

(Euro millions) 12.31.2004 12.31.2003Revenues on available-for-sale securities 36 40

Equities 18 7

Mutual funds 17 33

Other variable income securities 1

Revenues on portfolio securities 258 205

Revenues on long-term equity holdings (1) 814 266

REVENUES ON VARIABLE INCOME SECURITIES 1,108 511

(1) Of which CDC Holding Finance €511.3 million, including €353 million exceptional dividend in respect of the Restructuring of the partnership with the Caisse d’EpargneGroup (2003: €1.2 million), CDC Ixis €119.7 million (2003: €108.4 million), CNP Assurances €77.4 million (2003: €75.4 million).

Note 25 – Commission revenues and expenses

12.31.2004 12.31.2003

(Euro millions) Revenues Expenses Revenues ExpensesCustomer transactions 4 3

Securities transactions (1) (11) (20)

Financial instrument transactions (1)

Financial services and other 14 (19) 13 (20)

COMMISSIONS 18 (31) 16 (40)

(13) (24)

(1) The decline in depository commissions is due to an exceptional charge in 2003 of €7.2 million.

Note 26 – Gains (losses) on trading transactions

(Euro millions) 12.31.2004 12.31.2003Net gains (losses) on trading securities 1

Net gains (losses) on foreign currency instruments (1) 6 31

Net gains (losses) on financial instruments (36) (32)

GAINS (LOSSES) ON TRADING TRANSACTIONS (29) (1)

(1) Including, in 2003, a non-recurring foreign currency gain of €23 million relating to prior years.


CENTRAL SECTOR

Note 27 – Gains (losses) on available-for-sale and portfolio security transactions

(Euro millions) 12.31.2004 12.31.2003Net gains (losses) on the sale of available-for-sale securities 53 25

Other income (expenses) on available-for-sale securities (1)

Provision charges and reversals on available-for-sale securities (21) 133

Gains (losses) on available-for-sale securities 31 158

Net gains (losses) on the sale of portfolio securities 242 195

Other income (expenses) on portfolio securities (1) (3)

Provision charges and reversals on portfolio securities 204 119

Gains (losses) on portfolio securities 445 311

GAINS (LOSSES) ON AVAILABLE-FOR-SALE AND PORTFOLIO SECURITY TRANSACTIONS 476 469

Note 28 – Other net operating banking revenues (expenses)

12.31.2004 12.31.2003

(Euro millions) Revenues Expenses Revenues ExpensesGains and losses on disposal of investment properties 10 (1) 3

Depreciation and provision charges and reversals on investment properties 9 (9) 5 (20)

Income and expenses on investment properties 110 (36) 103 (60)

Total revenues and expenses on investment properties 129 (46) 111 (80)

Public-interest programs (64) (43)

Total revenues and expenses on public-interest programs 0 (64) 0 (43)

Expenses rebilled, revenues retroceded and expenses transferred 12 1 0

Agent commissions 0 (71) (81)

Other miscellaneous operating income (expenses) 27 (34) 52 (33)

Provision charges and reversals on other operating income (expenses) 1

Other operating income (expenses) 39 (105) 54 (114)

OTHER OPERATING BANKING REVENUES (EXPENSES) 168 (215) 165 (237)

OTHER NET OPERATING BANKING REVENUES (EXPENSES) (47) (72)

93

Note 29A) OPERATING EXPENSES

(Euro millions) 12.31.2004 12.31.2003Salaries (265) (242)

Retirement expenses and related provision charges and reversals (44) (49)

Long-service awards and related provision charges and reversals (2) (4)

Other employee-related expenses (70) (66)

Incentive programs and profit sharing (12) (9)

Payroll taxes (37) (35)

Provision charges and reversals 17 18

Payroll expenses (413) (387)

Taxes and duties (other than income taxes) (10) (9)

Rental and lease expenses (28) (29)

Insurance premiums (1) (1)

Research and related expenses (99) (112)

Other external services (41) (47)

Other expenses (20) (22)

Other administrative expenses (199) (220)

Rebillings (1) 322 320

Rebillings 322 320

Other operating expenses 1

Other operating expenses 1

OPERATING EXPENSES (289) (287)

(1) Rebilling of the provision of staff, IT resources and logistics to departments of the Caisse des Dépôts group.

B) NUMBER OF EMPLOYEES

12.31.2004 12.31.2003Average number of management employees 1,800 1,750

Of which, public sector 629 644

Of which, private sector 1,171 1,106

Average number of non-management employees 4,367 4,502

Of which, public sector 4,221 4,334

Of which, private sector 146 168

TOTAL AVERAGE NUMBER OF EMPLOYEES 6,167 6,252

Number of management employees at year-end 1,811 1,778

Of which, public sector 630 638

Of which, private sector 1,181 1,140

Number of non-management employees at year-end 4,317 4,446

Of which, public sector 4,179 4,283

Of which, private sector 138 163

TOTAL NUMBER OF EMPLOYEES AT YEAR END 6,128 6,224


CENTRAL SECTOR

Note 30 – Net amortization, depreciation and provisions on tangible and intangible fixed assets

(Euro millions) 12.31.2004 12.31.2003Amortization and depreciation of operating fixed assets (1) (55) (47)

Reversals of amortization and depreciation of operating fixed assets

Net amortization and depreciation of operating fixed assets (55) (47)

Provisions against operating fixed assets (1)

Reversals of provisions against operating fixed assets

Net provisions against operating fixed assets (1)

NET AMORTIZATION, DEPRECIATION AND PROVISIONS ON TANGIBLE AND INTANGIBLE FIXED ASSETS (55) (48)

(1) Including depreciation of tangible operating fixed assets of €24.1 million and amortization of intangible operating fixed assets of €34.4 million comprising additional software amortization relating to prior years.

Note 31 – Cost of risk

(Euro millions) 12.31.2004 12.31.2003Provision charges in respect of:

Impairment of receivables (26) (39)

Signature risk (1) (82) (4)

Default risk (2) (38)

Provision charges (110) (81)

Reversals of provisions in respect of:

Impairment of receivables 19 10

Signature risk 6 16

Default risk 15 28

Reversals of provisions 40 54

Losses on irrecoverable receivables and recoveries (12) (20)

Losses and recoveries (12) (20)

COST OF RISK (82) (47)

(1) Including €80 million of provisions for subsidized interest on public housing renovation loans.

95

Note 32 – Gains (losses) on fixed assets

(Euro millions) 12.31.2004 12.31.2003

GAINS (LOSSES) ON DISPOSALS OF TANGIBLE AND INTANGIBLE FIXED ASSETS (1)

Gains (losses) on transactions concerning long-term equity holdings and advances (1) 941 (31)

Gains (losses) on disposals of long-term equity holdings and advances 919 (13)

Provision charges and reversals on long-term equity holdings and advances 22 (18)

Gains (losses) on transactions concerning held-to-maturity and other long-term securities 1

Gains (losses) on disposals of held-to-maturity and other long-term securities 1

GAINS (LOSSES) ON TRANSACTIONS CONCERNING LONG-TERM EQUITYHOLDINGS AND OTHER LONG-TERM SECURITIES 941 (30)

GAINS (LOSSES) ON FIXED ASSETS 940 (30)

(1) In 2004, the main gains and losses on disposals of long-term equity holdings concerned the Restructuring:– gain on the sale of CDC Ixis securities of €982 million;– loss on the sale of CDC Ixis Italia Holding securities of €7 million.

Note 33 – Income tax

(Euro millions) 12.31.2004 12.31.2003Contribution representative of corporate income tax (1) (256) (230)

Deferred taxes 3

INCOME TAX (256) (227)

(1) Comprising amounts representative of:– 2004 income tax, €352 million;– additional 2003 income tax, €8 million;– reversal of a provision for deferred tax on capital gains, €104 million.

The lower rate of contribution representative of income tax in 2004 is due to the high level of gains taxed at a reduced rate (of which, Ixis€362 million, portfolio securities €254 million).

Note 34 – Net movement in Fund for General Banking Risks(FGBR) and other regulatory provisions

(Euro millions) 12.31.2004 12.31.2003Net charge to/writeback from regulatory provisions (1) 10 2

NET MOVEMENT IN FUND FOR GENERAL BANKING RISKS (FRBG) AND OTHER REGULATORY PROVISIONS 10 2

(1) Full reversal of the PCMLT provision (see Note 13).


CENTRAL SECTOR

Note 35Guarantee given by Caisse des Dépôts to IxisCorporate & Investment Bank (ICIB)

Under an agreement approved on December 1, 2000, Caissedes Dépôts provided CDC Ixis — now Ixis Corporate &Investment Bank, or ICIB — with a joint guarantee. This guaran-tee applies to certain financial instruments that enable the refi-nancing of ICIB (issuance transactions, with the exception ofsubordinated issues, and interbank and treasury issues) as wellas signature commitments. Under the terms of the agreement,ICIB can in turn give guarantees to certain of its subsidiariesunder specific conditions.

The European Commission reviewed the terms of this agree-ment in May 2003. Under the terms of the EuropeanCommission’s approval, the granting of this guarantee to newtransactions will expire on January 23, 2007.

Since April 1, 2003, new balance sheet commitments that reachmaturity after January 23, 2017 may no longer be guaranteed,and since January 23, 2004, new off-balance sheet items thatreach maturity after January 23, 2017 may also no longer beguaranteed.

The above guarantee arrangements have remained in placesince June 30, 2004, when CDC Ixis was sold to the Caissed’Epagne Group and the partnership Restructuring agree-ment was signed. In addition, under the terms of the agree-ment, CNCE has counter-guaranteed Caisse des Dépôts’original commitment to CDC Ixis, in exchange for 50% of thefee received by Caisse des Dépôts from ICIB.

The initial guarantee by Caisse des Dépôts to CDC Ixis helped to enhance the latter’s credit rating, thereby creating the foundation for a transition plan, approved by the EuropeanCommission’s Competition Department, to gradually wean thissubsidiary away from its parent company. The linkage of thesetwo commitments given and received should be seen as part ofthe process under which ICIB exits the activities manageddirectly by Caisse des Dépôts.

The normal accounting rules, which would have resulted in tworeciprocal commitments being entered under off-balance sheetcommitments, were not applied because they would not reflectthe substance of this complex and exceptional transaction involv-ing the divestment of a former subsidiary and the planned extinc-tion of the commitments of Caisse des Dépôts.

Effective April 1, 2003, the annual fee on the guarantee is thehighest of the following three amounts:

a) an amount based on the ratio, on a consolidated basis,between capital at risk and Tier 1 capital, as defined for capi-tal adequacy purposes;

b) the amount of total financial instruments outstanding issuedby ICIB multiplied by the difference, at the time of issue,between remuneration paid on financial instruments of com-parable maturity by financial institutions with the same ratingas ICIB (unsecured) and the remuneration paid on suchinstruments by financial institutions enjoying the same ratingas ICIB and guaranteed;

c) €8 million.

In 2004, fees due by ICIB to Caisse des Dépôts amounted to €10.3 million. The amount transferred to CNCE totaled €2.6 million in respect of the second half of 2004.

Sanpaolo IMI (SP IMI) commitment

Caisse des Dépôts and Sanpaolo IMI signed an agreement thatexpressed their intention to create a lasting strategic partner-ship. This agreement, which included cross-holdings acquiredby the two groups, granted Sanpaolo IMI two options to purchase CDC Ixis shares, the first in the event of a change incontrol of CDC Ixis, the second, which included a liquidity com-mitment, in the event that the shares were not listed on anorganized European market. In addition, Caisse des Dépôts hadan option to buy CDC Ixis shares owned by Sanpaolo IMI, whichcould be exercised in the event of a change in control ofSanpaolo IMI.

With the partnership Restructuring agreement, the ownershipinterest and partnership with SP IMI were transferred to CNCE.In the second half of 2004, as part of its repositioning within thetwo CNCE subsidiaries, Ixis Corporate & Investment Bank (ICIB)and Ixis Asset Management Group (IAMG), SP IMI exchangedits shares in Ixis for shares in each of these two companies. TheCaisse des Dépôts group was thus relieved of all its commit-ments toward Sanpaolo IMI as a shareholder in Ixis.

Guarantee granted in respect of CDC Holding Finance(CDC HF)

Caisse des Dépôts has given an undertaking to ensure that CDC Holding Finance will be able to fulfill its commitments aspart of the reciprocal guarantees signed by CDC HF and CNCEat the time of the Alliance transaction, in the event it should becalled upon to do so. In the first half of 2004, the commitmentsbetween CDC HF and CNCE were unwound. With CDC HF nowin a position to meet its commitments without recourse to theguarantee from Caisse des Dépôts, this guarantee was extin-guished effective June 30, 2004.

97

Independent Auditors’ reporton the financial statements of the Central Sectorof Caisse des dépôts et consignationsYear ended December 31, 2004

In accordance with the assignment entrusted to us, we herebypresent our report for the year ended December 31, 2004, on:

• our audit of the financial statements of the Central Sector ofCaisse des dépôts et consignations, as attached to thisreport;

• the justification of our assessments;

• the specific information and verifications required by law.

These financial statements have been approved by theChairman and Chief Executive Officer. Our role is to express anopinion on these financial statements based on our audit.

1 – Opinion on the financial statementsWe conducted our audit in accordance with the professionalstandards applied in France. Those standards require that weplan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material mis-statement. An audit includes examining, on a test basis, evi-dence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accountingprinciples used and significant estimates made by manage-ment, as well as evaluating the overall presentation of the finan-cial statements. We believe that our audit provides a reasonablebasis for our opinion.

In our opinion, the financial statements present fairly the results ofthe Central Sector for the year ended December 31, 2004 as wellas its assets, liabilities and financial position at that date, inaccordance with French accounting regulations and generallyaccepted accounting principles.

2 – Justification of our assessmentsIn accordance with the provisions of article L. 225-235 ofFrance’s Commercial Code (Code de commerce) relating to thejustification of our assessments, we call your attention to the fol-lowing element:

The valuations of long-term equity holdings and equity portfoliosecurities require the use of significant accounting estimates inany banking activity. Long-term equity holdings and equity port-folio securities are valued based on their fair value, using a multi-criteria approach (see the note on the principles used inpreparing the financial statements and Notes 3, 4 and 5 to thefinancial statements). As part of our assessment of these esti-mates, we examined the elements used to determine the fairvalues of the principal portfolio lines.

Our assessments have led us to the conclusion that these esti-mates are reasonable.

The assessments were made in the context of our audit of the financial statements, taken as a whole, and therefore contributed to the formation of the unqualified opinionexpressed in the first part of this report.

3 – Specific verifications and informationWe also examined the information provided in the annual report.We have no observations to make as to the fairness of that infor-mation and its conformity with the financial statements.

We verified that the information relating to the acquisition of con-trolling and other interests is disclosed in the managementreport.


The Independent Auditors

PricewaterhouseCoopers Audit Mazars & GuérardGérard Hautefeuille Mazars

Guillaume Potel Denis Grison



SAVINGS FUNDS

Description of the business

The activities of Caisse des Dépôts comprise two main missions:

• The direct business of the Central Sector – the financial andadministrative entity of Caisse des Dépôts – and of the sub-sidiaries and long-term equity interests attached to it, notablythe Caisse des Dépôts, C3D, CNP Assurances and CNCEgroups.

• The management of funds entrusted to it: the accountingstructure of Caisse des dépôts reflects the nature of the rela-tionship existing between the public institution and thesefunds.

A series of legal, regulatory and contractual provisions definesthe nature of the services provided by Caisse des Dépôts andtheir remuneration.

The regulations governing the savings funds are contained forthe most part in the Caisses d’Epargne Code and the Monetaryand Finance Code.

The administration of the savings funds is largely determined bythe practical implementation of these regulations, particularlybecause the funds are not established as separate legal entities;revenues must in some cases be identified separately; and Stateguarantees may apply to certain deposits.

The accounting systems used make it possible to identify eachfund’s resources, their uses and the earnings generated.Therefore, a balance sheet, an income statement and a state-ment of off-balance sheet commitments are drawn up for eachfund.

This section presents the financial statements relating to thesavings funds centralized by Caisse des Dépôts. These includedeposits taken on livret A and LEP passbook accounts andCodevi accounts of Caisses d’Epargne, the livret Bleu passbookaccounts of Crédit Mutuel, the LEP passbook accounts andCodevi accounts of banks and the deposits collected by LaPoste (livret A, livret B, PEP, LEP, Codevi and CNE home-purchase savings plans and livret Jeune passbook accounts).

Introductory note

99

Balance sheet of savings funds centralized by Caisse des Dépôts

12.31.2004 12.31.2003 12.31.2003(Euro millions) Notes reclassified*

ASSETSInterbank and similar transactions 80,031 81,995 73,648Public-sector securities and similar 3 70,948 72,026 72,026Amounts due by financial institutions 9,083 9,969 1,622

Ordinary accounts 1 1,418 1,536 1,388Infrastructure loans 2 30 42Housing loans 2 2,417 2,599Other loans 2 5,218 5,558Miscellaneous loans and advances 1 234 234

Customer transactions 2 104,861 103,690 111,794Other customer loans 104,861 103,690 111,794

Infrastructure loans 3,740 4,749 4,791Housing loans 82,745 82,708 85,208Other loans 18,376 16,233 21,795

Bonds, equities and other fixed and variable income securities 3 57,067 46,309 46,309Bonds and other fixed income securities 50,360 40,327 40,327Equities and other variable income securities 6,707 5,982 5,982Long-term equity holdings and investments 4 1 1 1Tangible fixed assets 5 4 4Other assets 6 20 9 133Accruals and deferrals 6 25 10

TOTAL ASSETS/LIABILITIES 242,005 232,018 231,889

LIABILITIESInterbank and similar transactions 130,797 124,572 1,706Amounts due to financial institutions 130,797 124,572 1,706

Ordinary accounts 7 268 148Term loans 7 1,657 1,706 1,706Other amounts due to financial institutions 7 2 249Savings deposits centralized by Caisse des Dépôts 8 123,736 119,520

Livret A – CEP 64,691 63,905Livret d’Epargne Populaire 36,616 34,327Other 22,429 21,288

Accrued interest on deposits 8 2,887 3,198Customer transactions 98,105 94,989 217,707

Savings deposits centralized by Caisse des Dépôts 8 95,588 92,261 211,781Livrets A et B – CNE 49,089 47,950 111,855Home-purchase 29,924 28,387 28,387Livret d’Epargne Populaire 12,289 11,691 46,018Other 4,286 4,233 25,521

Accrued interest on deposits 8 2,511 2,696 5,894Deductions from interest payable to depositors 8 6 32 32

Other liabilities 9 702 23 709Accruals and deferrals 9 2,653 2,419Provisions for risks and charges 10 1,269 1,475 1,475Subsidies 1,752Fund for General Banking Risks (FGBR) 11 3,194 2,908 2,908Retained earnings – excluding FGBR 12 5,285 5,632 5,632Ordinary retained earnings 4,019 4,500 4,500Unappropriated earnings 1,266 1,132 1,132

* Note 26 presents the reconciliation between the reported and reclassified amounts for 2003.


SAVINGS FUNDS

Livret A Livrets A & B(Euro millions) CEP FRGCE CNE FRGCNE LEP

ASSETSInterbank and similar transactions 17,632 1,258 18,673 1,138 28,069Public-sector securities and similar 15,795 16,771 245 27,249Amounts due by financial institutions 1,837 1,258 1,902 893 820

Ordinary accounts 3 985 6 246Infrastructure loans 15 3 12Housing loans 716 905 574Other loans 1,027 225Miscellaneous loans and advances 79 1,252 662

Customer transactions 49,592 31,961 5,056Other customer loans 49,592 31,961 5,056

Infrastructure loans 2,260 1,276 204Housing loans 47,332 30,685 4,852Other loans

Bonds, equities and other fixed and variable income securities 15,097 169 10,791 91 20,974Bonds and other fixed income securities 11,864 169 8,586 91 19,705Equities and other variable income securities 3,233 2,205 1,269Long-term equity holdings and investments 1Tangible fixed assetsOther assets 20 1Accruals and deferrals 6 3 7

TOTAL ASSETS/LIABILITIES 82,347 1,428 61,429 1,229 54,106

LIABILITIESInterbank and treasury transactions 78,763 9,516 225 40,311Amounts due to financial institutions 78,763 9,516 225 40,311

Ordinary accounts 76 87 65Term loans 325 351 225 756Other amounts due to financial institutions 2,652 2,682 1,641Savings deposits centralized by Caisse des Dépôts 74,285 6,396 36,616

Livret A – CEP 64,691Livret d’Epargne Populaire 36,616Other 9,594 6,396

Accrued interest on deposits 1,425 1,233Customer transactions 50,151 12,755

Savings deposits centralized by Caisse des Dépôts 49,089 12,289Livrets A and B – CNE 49,089Home-purchaseLivret d’Epargne Populaire 12,289Other

Accrued interest on deposits 1,062 466Withholding on interest payable to depositors

Other liabilities 3 3 2Accruals and deferrals 1,665 11 689 463Provisions for risks and charges 100 4 68 279Fund for General Banking Risks (FGBR) 1,087 733 320Retained earnings – excluding FGBR 729 1,413 269 1,004 (24)Ordinary retained earnings 1,313 3 979Unappropriated earnings 729 100 266 25 (24)

Breakdown of the balance sheetof savings funds centralized by Caisse des Dépôtsas of December 31, 2004

101

LEP CNE home- Other reserve Livret purchase savings Combined Inter-fund Consolidated

funds Jeunes Codevi savings PEP CNE funds total financing total

958 676 6,908 8,483 365 1,090 85,250 5,219 80,031365 1,794 8,104 365 260 70,948 70,948

958 311 5,114 379 830 14,302 5,219 9,08333 116 29 1,418 1,418

30 30222 2,417 2,417

3,925 41 5,218 5,218958 278 1,189 801 5,219 5,219

971 17,405 104,985 124 104,861971 17,405 104,985 124 104,861

3,740 3,74082,869 124 82,745

971 17,405 18,376 18,37618 502 1,190 7,073 730 432 57,067 57,06718 502 1,190 7,073 730 432 50,360 50,360

6,707 6,7071 1

10 31 11 209 25 25

976 1,178 9,079 32,970 1,095 1,522 247,359 5,354 242,005

6,690 499 12 136,016 5,219 130,7976,690 499 12 136,016 5,219 130,797

22 16 2 268 2681,657 1,657

483 10 7,468 5,219 2,2496,439 123,736 123,736

64,691 64,69136,616 36,616

6,439 22,429 22,429229 2,887 2,887

1,121 2,216 30,836 1,026 98,105 98,1051,077 2,209 29,924 1,000 95,588 95,588

49,089 49,08929,924 29,924 29,924

12,289 12,2891,077 2,209 1,000 4,286 4,286

44 7 906 26 2,511 2,5116 6 63 691 702 702

1 46 1 2,876 223 2,6532 600 4 1,057 (212) 1,269

1 84 943 26 3,194 3,194976 55 87 43 30 827 5,409 124 5,285957 63 36 43 29 756 4,179 160 4,01919 (8) 51 1 71 1,230 (36) 1,266


SAVINGS FUNDS


Commitments given in respect of financing, guarantees and securities 15AFinancing commitments 10,937 8,910 8,910To financial institutions 2,570 1,389

Offers of loans 2,516 1,378Housing loans 2,370 1,057Other loans 146 321

Undertakings to provide loans 1 2Housing loans 1 2

Loans agreed not disbursed 1 9Housing loans 1 9

Other financing commitments 52To customers 8,367 7,521 8,910

Offers of loans 4,929 4,188 4,188Housing loans 4,929 4,188 4,188

Undertakings to provide loans 752 972 2,352Housing loans 752 972 2,031Other loans 321

Loans agreed not disbursed 2,686 2,361 2,370Infrastructure loans 38Housing loans 1,856 1,612 1,621Home-purchase loans 792 749 749

Guarantee commitments 38 38 388Securities pledged as guarantees 350Other guarantees given to financial institutions 38 38 38

Commitments given on securities 5Securities to be delivered 5

Commitments received in respect of financing,guarantees and securitiesGuarantee commitments 81,068 76,265 76,265Received from the State and similar 77,345 1,008 1,008Received from financial institutions 3,608 3,560 3,560Other guaranatee commitments received 115 71,697 71,697Commitments received in respect of securities 193 74 74Securities to be received 193 74 74

Other commitments given and receivedOther commitments given 352 352 2Securities pledged as guarantees 350 350Real estate sales commitments 2 2 2Other commitments received 11 12 12Subsidies to be received on PLA loans 11 12 12

Commitments given and received in respect of financial instruments 15BCommitments given 11,894 6,082 6,082Futures 11,894 6,082 6,082Commitments received 11,913 6,702 6,702Futures 11,894 6,082 6,082Options 19 620 620


Off-Balance sheet commitments

103

Breakdown of off-balance sheet commitments of the savings funds centralized by Caisse des Dépôts as of December 31, 2004

Livrets CNE home- OtherLivret A A & B Livret purchase PEP savings Combined

(Euro millions) CEP FRGCE CNE LEP Jeunes Codevi savings CNE funds total

Commitments given in respect of financing, guarantees and securitiesFinancing commitments 5,789 3,536 622 198 792 10,937

To financial institutions 1,227 771 374 198 2,570Offers of loans 1,226 771 373 146 2,516

Housing loans 1,226 771 373 2,370Other loans 146 146


Loans agreed not disbursed 1 1Housing loans 1 1

Other financing commitments 52 52To customers 4,562 2,765 248 792 8,367

Offers of loans 2,931 1,873 125 4,929Housing loans 2,931 1,873 125 4,929

Undertakings to provide loans 502 229 21 752Housing loans 502 229 21 752

Loans agreed not disbursed 1,129 663 102 792 2,686Infrastructure loans 38 38Housing loans 1,129 625 102 1,856Home-purchase loans 792 792

Guarantee commitments 38 38

Other guarantees given to financial institutions 38 38Commitments given on securities 2 2 1 5

Securities to be delivered 2 2 1 5

Commitments received in respect of financing, guarantees and securitiesGuarantee commitments 47,165 2 30,650 2,262 989 81,068

Received from the State and similar 44,603 2 29,548 2,203 989 77,345

Received from financial institutions 2,449 1,102 57 3,608

Other guaranatee commitments received 113 2 115

Commitments received in respect of securities 148 27 8 10 193

Securities to be received 148 27 8 10 193

Other commitments given and receivedOther commitments given 2 350 352

Securities pledged as guarantees 350 350Real estate sales commitments 2 2Other commitments received 11 11

Subsidies to be received on PLA loans 11 11

Commitments given and received in respectof financial instrumentsCommitments given 3,011 2,173 5,451 15 465 755 24 11,894

Futures 3,011 2,173 5,451 15 465 755 24 11,894Commitments received 3,011 2,173 5,451 15 465 774 24 11,913

Futures 3,011 2,173 5,451 15 465 755 24 11,894Options 19 19


SAVINGS FUNDS


Interest and similar income 17 9,205 9,766 9,705

Treasury and interbank transactions 451 511 137Financing transactions 324 374Other 127 137 137

Customer transactions 4,361 4,638 4,988Financing transactions 4,361 4,638 4,988

Fixed income transactions 4,393 4,617 4,580

Interest and similar expenses 18 (6,366) (7,313) (7,276)

Treasury and interbank transactions (3,549) (4,408) (392)Deposits (3,429) (4,016)Other (120) (392) (392)

Customer transactions (2,678) (2,868) (6,884)Deposits (2,678) (2,868) (6,884)

Fixed income transactions (139) (37)

Revenues from variable income securities 19 201 166 166

Commissions (income) 20 1 4

Other commissions 1 4

Commissions (expenses) 20 (2,587) (2,351) (2,347)

Payments to centralizing networks (2,572) (2,169) (2,169)Payments to financial institutions (1,190) (978)Payments to customer network (1,382) (1,191) (2,169)

Other commissions (15) (182) (178)

Gains or losses on trading transactions (18) (22) 2

Foreign currency transactions 2 2Financial instrument transactions (18) (24)

Gains or losses on available-for-sale security transactions and similar 21 992 1,293 1,299

Available-for-sale securities 672 734 740Provisions net of reversals 320 559 559

Other net operating banking revenues and expenses 22 (15) 3 9

NET BANKING INCOME 1,413 1,546 1,558

Operating expenses 23 (91) (86) (86)

GROSS INCOME FROM OPERATIONS 1,322 1,460 1,472

Cost of risk 24 230 (27) (33)

Provision charges net of reversals on non-performing loans 43 17 17Provisions for risks and charges net of reversals 208 (43) (49)Gains or losses on irrecoverable loans (21) (1) (1)

NET INCOME FROM OPERATIONS 1,552 1,433 1,439

Gains or losses on fixed assets 6

NET RECURRING INCOME 1,552 1,439 1,439

Net movement in the FGBR 25 (286) (307) (307)

NET INCOME 1,266 1,132 1,132


Income statement

105

I – Highlights for the year

1 – Decrease in livret A, livret B and livret Bleu commissions

In December 2004, the government announced a 0.10%decrease in commissions on the collection of savings depositsfor the Caisse Nationale d’Epargne (CNE) livret A, livret B andCrédit Mutuel livret Bleu passbook accounts, effective January 1,2005. While this decrease did not affect commissions for 2004,it does lower the cost of resources for the CEP livret A and CNElivret A and livret B sections, and thereby improved net incomefor the savings funds by around €300 million through a reversalof provisions for risks and charges on loans at rates less thanthe cost of resources for these sections.

2 – Timing of commission payments to Crédit Mutuel

The September 1, 2004 agreement on the livret Bleu signed bythe government and Crédit Mutuel calls for monthly commissionpayments beginning July 1, 2004. An application agreementwas signed by Caisse des Dépôts and Crédit Mutuel onSeptember 1, 2004, effective retroactively to July 1, 2004.

3 – Administration of home-purchase savings with La Poste

Following the recommendations of the Nasse-Noyer report, dis-cussions began in 2004 to implement a new division of respon-sibilities between La Poste and Caisse des Dépôts regarding theadministration of home-purchase savings centralized withCaisse des Dépôts by Caisse Nationale d’Epargne. A new management agreement was signed on February 26, 2004,with retroactive effect to January 1, 2004.

La Poste, which receives the surplus from the section, takes onthe investment decision-making authority. To that end, it headsa monthly Financial Investment Committee of the home-purchase savings section. This committee voted to increase the held-to-maturity portfolio for the home-purchase section,initially through a €3,325 million transfer from the available-for-sale portfolio on June 30, 2004, and subsequently throughmarket purchases.

The agreement calls for monthly installment payments to LaPoste, which are reconciled once the annual surplus is known.For the first year of the agreement in 2004, these installmentswere calculated based on a rate of 1.75% applied to the savingsdeposits.

The administration of disputed home-purchase loans was trans-ferred to La Poste on December 31, 2004, in accordance withthe agreement of February 26, 2004.

4 – Change in valuation method

Provisions for risks and chargesBeginning in 2004, provisions for risks and charges relating tonegative spreads on loans are calculated on the basis of theamount of the overall loan that is likely to be used (and not on theoverall loan amounts authorized), supplemented by the loansalready recorded on the balance sheet (loans effectively disbursed) and off-balance sheet (loan offers, undertakings to provide loans and loans contracted but not yet disbursed).This valuation change resulted in a write-back of €77 million asof December 31, 2004.

II – Change in presentation of the financialstatements for the savings funds

The financial statements of the savings funds were brought intofull compliance with the provisions of CRC (the French AccountingRegulations Committee) Standard 2000-03 regarding individualsummary reports of companies subject to CRBF regulations (theFrench Banking and Financial Regulations Committee). However,the information by type of financing continues to be presented inthe notes to the financial statements.

The main changes are as follows:

Balance sheetOn the assets side, financing transactions (infrastructure loans,housing loans and other loans) have been broken down intointerbank and similar transactions and customer transactions.

Accrual and deferral accounts and other assets, which werepreviously reported on the same line, are now presented sepa-rately on two different lines.

On the liabilities side, savings deposits centralized by Caissedes Dépôts have been broken down into interbank and similartransactions and customer transactions.

Accrual and deferral accounts and other liabilities, which werepreviously reported on the same line, are now presented sepa-rately on two different lines.

Notes to the financial statements


Income statementInterest and similar revenues related to financing transactionshave been broken down into interest and similar revenues oninterbank transactions and on customer transactions.

Interest and similar expenses related to deposits have been broken down into interest and similar expenses on treasury andinterbank transactions and on customer transactions.

Previously, commissions were reported net on a single line; they are now broken down into revenues and expenses on two separate lines.

For comparison purposes, a pro forma balance sheet andincome statement have been prepared. The items enabling acomparison between the financial statements of the savingsfunds published on December 31, 2003 and the pro forma 2003financial statements are presented in Note 26. In addition, therestatement columns are also presented for the relevant notesto the financial statements.

III – Accounting policies and methods

The financial statements have been prepared in accordancewith generally accepted accounting principles in France andspecific regulations applicable to financial institutions.

1 – Fixed assets and long-term equity holdings

Fixed assets are valued at cost. In the case of buildings, the costof initial fixtures, fittings and installations may be added to theacquisition cost.

As provided for in the lease agreement, the asset representedby property built on land belonging to a third party and madeavailable under a finance lease was sold at the end of the leaseperiod.

A provision for impairment is recorded in respect of land hold-ings when there is a lasting decrease in their value.

Investments in non-trading real estate investment companiesare recorded at cost. Provisions for impairment are recordedwhen there is a lasting decrease in value determined by refer-ence to the companies’ net asset value.

The application of CRC Standard 2002-10 of December 12,2002 related to fixed asset depreciation, amortization andimpairment had no material impact on the savings funds.

2 – Loans and borrowings

LoansLoans are recorded at their redemption value.

Certain loans are repayable in increasing annual installments,resulting in cumulative differences between interest accrued andinterest payable. These differences are recorded as accruedinterest, which is collected gradually over the life of the loan.

Compensation received when loans are repaid early or restruc-tured is credited to income in the year it is received.

Capital gains arising on the transfer of loans between savingsfunds are eliminated in the accounts of the savings funds cen-tralized by Caisse des Dépôts.

When the loans of CGLLS and former government loans areassumed by the savings funds, the difference between thetransaction value and the book value is recorded as a premiumor discount, which is amortized using the yield-to-maturitymethod over the life of the corresponding loans. Provisions forrisks and charges are recorded in respect of premiums on loanswith a high risk of being restructured or repaid early, since anypremium paid when these loans were assumed no longer hasany financial substance.

The amortization schedule is updated every quarter to reflectloans having given rise to early repayment or restructuring aswell as any changes in interest rates.

The loans are classified as non-performing when a recognizedcredit risk arises, in other words once it becomes likely that partor all of the amounts due under the loan agreement will not bereceived, notwithstanding the existence of a guarantee ordeposit. In any event, non-performing loans include those loanswith payments more than three months past due (six months forreal estate loans, and nine months for loans to local govern-ments), loans for which the borrower’s financial situation hasdeteriorated and raises the risk of non-recovery, and loans sub-ject to a legal dispute.


SAVINGS FUNDS

107

The loans made by the savings funds are almost always guaran-teed by local governments or the French State.

For accounting purposes, irrecoverable non-performing loansare recorded separately.

Irrecoverable non-performing loans include: those for which thecounterparty’s solvency is such that after the loans have beenclassified as non-performing for a reasonable amount of time,no reclassification to performing loans is foreseeable; loans forwhich an acceleration clause has been triggered; and someloans classified as non-performing for more than one year, i.e.those presenting irrecoverable characteristics and for which aprovision must be established and those for which a futuretransfer to loss is foreseeable. This assessment must be per-formed after taking into account existing loan guarantees.

Non-performing loans and irrecoverable loans may be reclassi-fied as performing loans when payments have resumed in asteady fashion for the amounts corresponding to the originalcontractual payment schedule and once the counterparty nolonger presents a default risk. They may also be classified asrestructured loans if debt has been restructured and followingan observation period.

For loans with recognized credit risk exposure, provisions areestablished to cover all projected losses on loans classified asnon-performing or irrecoverable.

A full provision is established on all outstanding, accrued andunpaid interest.

Once the loan is deemed to be definitively irrecoverable, a loss isrecorded.

Restructured loans at below market rates are broken out sepa-rately, where applicable, in a specific sub-category for perform-ing loans. At the time of the restructuring, the loan is recorded atnominal value less a discount, booked to cost of risk, corre-sponding to the amount of forfeited interest. This interest differ-ential is accounted for in the lending margin over the life of theloan concerned. Where applicable, when uncertainties persistwith regard to the borrower’s renewed solvency, the loan is classified under non-performing loans and a corresponding provision is established.

All restructured loans are immediately reclassified as irrecover-able if the borrower fails to make scheduled payments.

BorrowingsLoans payable are recorded in the balance sheet at redemptionvalue. Interest expense is charged to the income statement onan accruals basis.

3 – Available-for-sale securities

The rules for the valuation of available-for-sale securities dependon the category to which they belong.

Fixed income securities At the time of purchase, fixed income securities are recorded atface value, with the difference (premium or discount) betweencost and face value taken to a separate account.

At the closing date:

• the premium or discount is recognized in the income state-ment on a straight-line basis over the remaining life of thesecurity;

• a provision for impairment is taken on a line-by-line basis inrespect of any unrealized loss determined by reference to themark-to-market value at the closing date concerned.

Fixed income securities are accounted for on a first-in, first-out(FIFO) basis.

The accounting principles used for the recording of credit riskare applied to fixed income securities.

Inflation-indexed bondsGiven the lack of specific regulations applicable to credit institu-tions, the effect of indexation on the face value of inflation-indexed bonds may be accounted for when the bond is sold ormatures, or spread over the bond’s remaining life, or as incomeor expense for the period.

Effective December 31, 2003, the decision was taken to recordas income or expense any gains or losses related to the indexa-tion of the bond’s face value to inflation, by analogy to theaccounting treatment prescribed by article R332-19 of theFrench Insurance Code, as amended by decree No. 2002-1535of December 24, 2002.

Variable income securitiesVariable income securities are recorded at cost and revalued atyear-end and when sold using the weighted average costmethod. A provision is taken when weighted average costexceeds mark-to-market value at end-December or the futurerealizable value of commitments received, or the latest redemp-tion value in the case of units in mutual funds.

Negotiable debt securities and other interbank securitiesAt the time of purchase, these securities are recorded at facevalue, with the difference (premium or discount) between costand face value taken to a separate account.

At the closing date, the premium or discount is recognized in theincome statement using the yield-to-maturity method over theremaining life of the security. Provisions are taken by reference tothe solvency of the issuer and market indicators.


SAVINGS FUNDS

4 – Held-to-maturity portfolio

This portfolio comprises bonds and negotiable debt instrumentsacquired with the intention of being held on a long-term basis –normally to maturity – and for which resources considered to haveat least the same maturity have been earmarked.

The securities are accounted for in accordance with rules appli-cable to held-to-maturity portfolios. Therefore:

– provisions are not taken in respect of unrealized capital lossesarising only from increased interest rates;

– any premium or discount is spread over the remaining life ofthe security using the yield-to-maturity method for negotiabledebt securities and on a straight-line basis for bonds.

Securities sold are accounted for on a first-in, first-out (FIFO)basis.

The accounting principles used for the recording of credit riskare applied to fixed income securities.

5 – Portfolio securities (TAP)

Portfolio securities are investments made on a regular basis withthe aim of realizing a capital gain in the medium term but withoutthe intention of investing on a long-term basis in the develop-ment of the business or taking an active part in the operationalmanagement of the issuing undertaking.

They are recorded at the lower of cost or fair value.


An impairment provision, based on the fair value, is establishedfor unrealized capital losses, determined by line of securitieswithout offsets with unrealized gains.

Currently, the TAP portfolios of the savings funds consist of venture capital funds (Fonds Communs de Placement à Risque– FCPR) invested in unlisted equities, as authorized by theInvestment Code that took effect through the Minister of theEconomy, Finance and Industry’s February 18, 2002 letter.

6 – Temporary divestment of securities

Lending and borrowing of securitiesSecurities lent are recorded on a separate line on the assets sideof the balance sheet at their book value in the portfolio fromwhich they were transferred, determined using the last-in, first-out (LIFO) method.

At the closing date, they are valued in accordance with rulesapplicable to the portfolios from which they were transferred.

Securities borrowed are recorded at their market value on theday they were borrowed, as an asset under trading securitiesand as a liability representing the amount due to the lender.

At the closing date, these items are marked to market.

Interest arising from lending and borrowing of securities is recognized on an accruals basis.

Securities sold (purchased) under collateralized fixed repurchase (resale) agreementsSecurities sold under collateralized fixed repurchase agree-ments are maintained in their original portfolio and continue tobe valued according to the rules applicable to that portfolio.They are recorded on a separate line under liabilities.

Securities received as collateral are recorded under assets, withthe entry representing the amount receivable. These securitiesare not revalued.

At the closing date, income or charges arising from the aboveagreements are recognized on an accruals basis.

7 – Off-balance sheet commitments (other than interest rate swaps)

Off-balance sheet commitments given relate mainly to loans thathave been granted but for which the funds have not yet beendisbursed.

Off-balance sheet commitments received include State guaran-tees, commitments received from financial institutions and localgovernments and securities commitments.

The loans made by the savings funds are almost always guaran-teed by local governments.

Signature commitments follow the same accounting principlesand methods as those applied to credits.

109

8 – Interest rate swaps

Interest rate swaps entered into by the savings funds in order tohedge specific, perfectly identified transactions are reported asoff-balance sheet commitments.

Income and expenses generated by these instruments are rec-ognized in the income statement symmetrically with the resultsgenerated by the hedged item.

The accounting principles used for the recording of credit riskare applied to forward financial instruments.

In accordance with the regulations adopted on November 23,2004 by the CRC, the fair value of financial instruments hasbeen reported in 2004 (see Note 15B).

9 – Foreign currency transactions

Foreign currency assets and liabilities are translated at the clos-ing date exchange rates.

Spot transactions are translated at the spot rate, while forwardtransactions are translated at the forward rate for the remainingterm.


Provisions are booked for losses that are certain, resulting fromloan programs at rates lower than the cost of the relatedresources:

• For the LEP program, part of the PLI loans has been refi-nanced by borrowings and a provision has been recorded tocover the actuarial loss.

• In the case of loans bearing interest at rates lower than thecost of the resources, provisions are booked to cover theactuarial loss. This concerns PLA-TS, distressed neighbor-hood loans as part of the suburban revitalization plan, loansfor emergency housing projects and demolition-reconstruc-tion loans, PEX, PHARE, PLUS and renovation loans indexedon livret A rates, as well as PPU loans paid out of LEP funds.

The provision for losses relating to all livret A funds is sharedacross all funds since resources financing these loans are of thesame nature and bear identical interest rates.

A provision has also been recorded to cover specific risksrelated to home-purchase savings products.

This risk, which corresponds to the commitment to grant loansat a rate that is set contractually in advance, is currently evalu-ated on a global basis at 2% of all home-purchase savingsdeposits at the closing date.

11 – Funds for General Banking Risks (FGBR)

The Funds for General Banking Risks are intended to cover gen-eral banking risks inherent to the activity of lending and investingin financial markets. These funds have been constituted by eachof the savings funds as a complement to specific provisionsrecorded by each of them, so as to ensure that they satisfy mini-mal capital adequacy requirements as laid down in applicablebanking regulations for default and market risks.

Capital adequacy requirements are covered by regulatoryreserves when these exist, and by the FGBR, available reserves,retained earnings and income for the year.

Regulatory reserves and the FGBR are calibrated to cover atleast:

– the European capital adequacy ratio, based on each fund’srisk-weighted assets;

– each fund’s exposure to market risks.

The surplus over the minimum corresponds to a coverageapproach based on future capital adequacy requirements thatcould result from regulatory changes and changes in the assetmanagement policy.

For the home-purchase savings section, the FGBR alsoincludes a component aimed at satisfying the section’s capitaladequacy maintenance clause at the level observed onDecember 31, 2003 (see I-3 Notes to the financial statements).


IV – Financial information on market risks

1 – Assets-liabilities management

The savings funds are exposed to a refinancing risk since theymake medium- to long-term loans out of resources repayableon demand. However, given the stability of these resources inthe past, the fact that interest rates for most loans are indexed tothe cost of these resources and the satisfactory level of liquidity,the savings funds are able to refinance their commitments with-out being exposed to a significant risk.

Interest rate and liquidity risks are measured using asset-liabilitymanagement systems calibrated to take into account the char-acteristics of the assets and liabilities to the utmost level ofdetail. In particular, it is possible to model the balance sheet toreflect various assumptions regarding deposit taking and lend-ing. To provide depositors with the highest possible level of pro-tection, the size and structure of the portfolio of financial assetsare designed to leave real possibilities for adapting the portfolioto possible changes in liquidity risk, while protecting the interestmargin earned now and in the future against movements ininterest rates.

Following the July 21, 2003 announcement regarding the estab-lishment of an indexing rule for regulated savings products, theforecasting and risk assessment applications were adapted to thenew rule.

At the same time, the savings funds, anticipating future capitaladequacy requirements, assessed the impact of these standards,in particular relative to interest rate risk coverage.

2 – Risk management

Risk management at Caisse des Dépôts 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 approvessystems and methods. The Risk Management Department isresponsible, at the level of the public institution, for monitoring thefinancial risk to which portfolios are exposed.

Regarding credit risk, a Default Risk Committee meets eachmonth and is responsible for:

– defining and monitoring the credit risk policy;

– approving the method for setting counterparty limits, based onproposals by Risk Management;

– setting limits by counterparty, based on proposals by RiskManagement, bearing in mind that the limits for each portfolioare independent of one another.

Risk Management is responsible for controlling day-by-day thateach financial department complies with the limits set. Whenproposing limits, this work is based on summary data, mainlyfrom the analyses provided by Ixis CIB, credit rating agenciesand published information.

At end-2004, the savings funds’ largest commitment by coun-terparty of the fixed income portfolios was the French State, with 61%.

V – Financial statements presentation

The financial statements present the overall situation of the sav-ings funds centralized by Caisse des Dépôts. They include thefollowing funds:

• Caisses d’Epargne et de Prévoyance (CEP): livret A;

• CEP reserve and guarantee fund;

• Caisse Nationale d’Epargne (CNE): livrets 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.

Separate financial statements are prepared for each of thesefunds. These financial statements provide an overall view and abreakdown by fund.

SAVINGS FUNDS

111

Note 1 – Treasury and interbank transactions

12.31.2004 12.31.2003 12.31.2003(Euro millions) reclassified*Ordinary accounts 1,418 1,536 1,388

Current accounts (1) 49 216 68

Current accounts representing minimum reserves 1,366 1,319 1,319

Acrrued interest 3 1 1

Other amounts due by financial institutions 234 234

Securities purchased under collateralized fixed resale agreements 228 228


TOTAL 1,418 1,770 1,622

(1) The public institution Caisse des Dépôts, 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.

* Details of reclassifications as of December 31, 2003: Itemization of asset and liability current accounts based on their balance by fund.

Note 2 – Financing transactions

In order to comply fully with the provisions of CRC Standard 2000-03, financing transactions have been broken down separately intointerbank and similar transactions and customer transactions (see II Notes to the financial statements). Nevertheless, the reporting bytype of financing has been maintained in order to supplement the information provided, in particular with regard to regulated loans.

A) INFRASTRUCTURE LOANS

Early Other(Euro millions) 12.31.2004 Payments Repayments repayments movements (1) 12.31.2003Infrastructure loans 3,564 (873) (161) (10) 4,608

New uses 89 63 (1) 27

Capital 3,653 63 (874) (161) (10) 4,635

Accrued interest 115 (33) 148

Installments being collected (6) 6

Unpaid installments 2 2

TOTAL 3,770 63 (874) (161) (49) 4,791

Of which:

Non-performing loans and interest 91 (35) 126

Provisions (13) 7 (20)

Of which, financial institutions 30 (1) (11) 42

Of which, customers 3,740 63 (873) (161) (38) 4,749

(1) Including rescheduled loans and changes in non-performing loans net of related provisions.


Note 2 (cont’d)

B) HOUSING LOANS

Early Other12.31.2004 Pay- Repay- repay- move- 12.31.2003 12.31.2003

(Euro millions) ments ments ments ments (1) reclassified*PLA (2) (3) 45,866 2,222 (941) (214) (147) 44,946 44,946

PAM and PRV (3) 6,221 387 (656) (262) (8) 6,760 6,760

PLI and PHEBE 4,032 946 (104) (24) (274) 3,488 3,396

PAP 351 (765) 1 1,115 1,115

PPU 2,851 236 (218) (68) 25 2,876 2,876

Other (3) 21,012 988 (1,352) (110) 722 20,764 20,764

Capital 80,333 4,779 (4,036) (678) 319 79,949 79,857

Accrued interest not due 4,743 (483) 5,226 5,226

Installments being collected 80 (48) 128 128

Unpaid installments 6 2 4 4

Early repayments being processed (7)

TOTAL 85,162 4,779 (4,036) (678) (210) 85,307 85,208

Of which, financial institutions 2,417 651 (818) (1) (14) 2,599 2,507

Of which, customers 82,745 4,128 (3,218) (677) (196) 82,708 82,701

(1) Including the reversal or amortization of premiums and discounts, capitalized interest, changes in non-performing loans net of related provisions and rescheduled loans.(2) Excluding subsidies.(3) Rescheduled PLA, PAM and HLMA-HLMO loans have been reclassified under “Other housing loans”.

* Details of reclassifications as of December 31, 2003:– allocation of PLI advance to Entenial to financing transactions in the amount of €92 million;– transfer of unallocated early repayments on housing loans to accrued liability accounts in the amount of €7 million.

Non-performing loans and provisions are analyzed below:

12.31.2004 12.31.2003

Capital Capital(Euro millions) and interest Provisions Net and interest Provisions NetPLA 2,517 277 2,240 2,599 305 2,294

PAM and PRV 296 16 280 368 24 344

PLI and PHEBE 53 3 50 58 5 53

PPU 89 4 85 143 6 137

Other 959 101 858 1,044 106 938

TOTAL 3,914 401 3,513 4,212 446 3,766

Of which, financial institutions 11 11 1 12 11 1

Of which, customers 3,903 390 3,765 4,200 435 3,765

SAVINGS FUNDS

113

C) OTHER LOANS

Early Other12.31.2004 Pay- Repay- repay- move- 12.31.2003 12.31.2003

(Euro millions) ments ments ments ments (1) reclassified*

Codevi loans

BDPME 3,415 175 (153) 3,393 3,393SDR 372 (92) (11) 475 475Other 7 (8) (3) 18 18

Capital 3,794 175 (253) (14) 3,886 3,886Accrued interest 127 (5) 132 132Installments being collected 5 1 4 4Unpaid installments 6 (12) 18 18

TOTAL 3,932 175 (253) (14) (16) 4,040 4,040Of which:Non-performing loans and interest (4) 4 4

Home-purchase loans

Primary loans 2,273 441 (478) (102) (2) 2,414 2,414Supplementary loans 12,393 3,122 (836) (644) (8) 10,759 10,762Subsidized loans 2,689 912 (106) (210) 2,093 2,094

Capital 17,355 4,475 (1,420) (956) (10) 15,266 15,270Accrued interest 48 4 44 44Installments being collected 1 1 1Unpaid installments 1 1 1

TOTAL 17,405 4,475 (1,420) (956) (6) 15,312 15,316Of which:Non-performing loans and interest 29 1 28 28Provisions (18) (7) (11) (11)

Miscellaneous other loans

CNCEP 986 (121) 1,107 1,107Other loans (2) (3) 1,188 36 (147) (10) 63 1,246 1,246

Capital 2,174 36 (268) (10) 63 2,353 2,353Accrued interest 42 (7) 49 49Installments being collected 41 4 37 37

TOTAL 2,257 36 (268) (10) 60 2,439 2,439Of which:Non-performing loans and interest (2) 969 (3) 972 972Provisions (2) (5) 56 (61) (61)

TOTAL OTHER LOANS 23,594 4,686 (1,941) (980) 38 21,791 21,795

Of which, financial institutions 5,218 211 (521) (11) (19) 5,558 5,558

Of which, customers 18,376 4,475 (1,420) (969) 57 16,233 16,237

(1) Including change in non-performing loans net of related provisions.(2) Including a loan downgraded to non-performing in the amount of €983 million, and which is fully guaranteed by the French State, recorded under off-balance sheetcommitments (see Note 15). In accordance with banking regulations, accrued interest was fully provisioned.(3) Payment of €36 million in subordinated loans.

* Details of reclassifications as of December 31, 2003: transfer of unallocated early repayments on home-purchase loans to accrual accounts in the amount of €4 million.


Note 3 – Securities transactions

A) ANALYSIS BY NATURE AND TYPE OF PORTFOLIO, NET OF PROVISIONS

12.31.2004 12.31.2003 Available- Held-to- Available- Held-to-

for-sale maturity Portfolio for-sale maturity Portfolio(Euro millions) securities securities (1) securities securities securities securities


Government securities 22,925 11,467 26,570 11,516

Treasury bills 23,122 1,167 20,496 932

Securities loaned* 6,419 5,848 6,146 6,366

Sub-total by portfolio 52,466 18,482 53,212 18,814

Total all portfolios 70,948 72,026


Bonds 17,284 8,752 18,489 6,565

Other fixed income securities 22,567 1,709 13,829 1,420

Securities loaned* 48 24

Sub-total by portfolio 39,899 10,461 32,342 7,985



Equities 6,197 5,565

Other variable income securities (including mutual funds) (2) 478 32 395 22

Sub-total by portfolio 6,675 32 5,960 22


SUB-TOTAL BY PORTFOLIO (3) 99,040 28,943 32 91,514 26,799 22

TOTAL ALL PORTFOLIOS 128,015 118,335

* Breakdown of securities loaned

Government securities 3,351 5,631 3,759 6,214

Treasury bills 3,068 217 2,387 152

Bonds 48 24

TOTAL 6,467 5,848 6,170 6,366

(1) Increase in the held-to-maturity portfolio of the home-purchase savings section, first by way of a transfer from the available-for-sale portfolio in the amount of €3,325 million on June 30, 2004, and subsequently through market purchases (see I-3 Notes to the financial statements).(2) Of which, dedicated mutual fund units – FCP Obligation Epargne – sold during the fourth quarter of 2004, corresponding to a reduction of €43 million generating a capital gain on disposal of €35 million. As of December 31, 2003, the book value was €22 million and the net asset value was €54 million.(3) In 2003, some held-to-maturity securities were sold in order to comply with the new Investment Code promulgated by the Ministry of the Economy, Finance andIndustry. These investments had a book value of €457 million, and their disposal generated a capital gain of €50 million in 2003. There were no disposals of held-to-maturity securities in 2004.

SAVINGS FUNDS

115


12.31.2004 12.31.2003 Available- Held-to- Available- Held-to-

for-sale maturity Portfolio for-sale maturity Portfolio(Euro millions) securities securities securities securities securities securities


Gross value 50,030 17,641 50,923 17,916

Premiums/discounts 1,372 273 1,069 258

Accrued interest 1,065 568 1,244 640

Provisions (1) (24)

Net book value by portfolio 52,466 18,482 53,212 18,814

Net book value of all portfolios 70,948 72,026

Market value of available-for-sale and held-to-maturity securities 54,026 19,526 54,076 19,516

Redemption value of available-for-sale and held-to-maturity securities 50,030 17,641 50,923 17,916


Gross value 39,214 10,078 31,563 7,693

Premiums/discounts 272 82 303 71

Accrued interest 432 304 513 221


Net book value by portfolio 39,899 10,461 32,342 7,985


Market value of available-for-sale and held-to-maturity securities 40,785 10,999 32,921 8,278

Redemption value of available-for-sale and held-to-maturity securities 39,214 10,078 31,563 7,693


Gross value 7,398 33 6,975 23

Accrued interest 8

Provisions (731) (1) (1,015) (1)

Net book value 6,675 32 5,960 22


Market value of available-for-sale and held-to-maturity securities 9,716 33 8,913 22

Note 4 – Long-term equity holdings and other long-term investments

(Euro millions) 12.31.2004 12.31.2003Long-term equity holdings 1 1

Gross value 1 1

TOTAL 1 1


Note 5 – Tangible fixed assets

(Euro millions) 12.31.2004 Disposals Other movements (1) 12.31.2003Investment property

Buildings (2) (4) 4

Gross value (81) 81

Depreciation 81 (4) (77)

Land

Gross value 1 1

Provisions (1) (1)

TOTAL (4) 4

Gross value 1 (81) 82

Depreciation 81 (4) (77)

Provisions (1) (1)

(1) This corresponds to depreciation charges and provisions net of reversals.(2) This relates to a building erected on land belonging to a third party and made available under a finance lease that ended in October 2004. The building was sold in November 2004.


12.31.2004 12.31.2003 12.31.2003(Euro millions) reclassified*Other assets 20 9 100

Interest subsidies and other subsidies receivable 10 6 6

PLA subsidies receivable 8 6 6

PAM subsidies receivable 2

Advances on Entenial refinancing 92

Other receivables 10 3 2


Accrued income 1 1 27

Accrued income on financial instruments 26

Home-purchase premiums receivable 1

Other accrued income 1 1

Accrued expenses 20 5

Accrued expenses on financial instruments 20 5

Deferred losses on derivatives 5

Other accruals 4 4

On loans 4 4

TOTAL 45 19 133

* Details of reclassifications as of December 31, 2003:– asset-liability set-off of financial instrument valuations in the amount of €26 million;– transfer of unallocated early repayments on home-purchase savings loans to accrual accounts in the amount of €4 million;– transfer of PLI advance to Entenial to financing transactions in the amount of €92 million.

SAVINGS FUNDS

117

Note 7 – Treasury and interbank transactions

12.31.2004 12.31.2003 12.31.2003(Euro millions) reclassified*Ordinary accounts 268 148

Sight deposits (1) 263 148

Accrued interest 5

Term loans 1,657 1,706 1,706

From CFF (PLI) 727 732 732

Other loans from CFF 138 148 148

From IXIS CIB (PPU) (2) 50 46 46

Loans assumed from CGLLS 486 543 543

Advances from Caisse des Dépôts – Central Sector (3) 225 201 201


Other interbank debt 2,249

Securities given under collateralized fixed repurchase agreements 2,247

Accrued interest 2

TOTAL 4,174 1,854 1,706

(1) The public institution Caisse des Dépôts – Central Sector – is the savings funds’ banker. As such, it centralizes the cash resources and provides all the services of a banking nature.(2) Refinancing of PPU loans (maturing 2021).(3) Refinancing of subordinated loans to Crédit Logement.

* Details of reclassifications as of December 31, 2003: itemization of sight accounts under assets and liabilities depending on their balance by fund.


Note 8 – Deposits

In order to comply fully with the provisions of CRC Standard 2000-03, centralized savings deposits have been broken down into depo-sits from financial institutions and customer deposits (see II Notes to the financial statements). Nevertheless, the reporting by type offund has been maintained in order to supplement the information provided, in particular with regard to regulated savings deposits.

A) CENTRALIZED DEPOSITS

Deposits Capitalized Deposits Deposits Capitalized Depositsas of interest as of as of as of interest as of as of

(Euro millions) 01.01.2005 01.01.2005 (1) 12.31.2004 01.01.2004 01.01.2004 (1) 12.31.2003Livret A – CEP 66,113 1,422 64,691 65,617 1,712 63,905

Livrets A and B – CNE 50,148 1,059 49,089 49,205 1,255 47,950

LEP 50,675 1,770 48,905 47,851 1,833 46,018

Livret Jeunes 1,119 42 1,077 1,056 41 1,015

Codevi (2) 8,648 8,648 8,329 8,329

Home-purchase 30,825 901 29,924 29,263 876 28,387

PEP CNE 1,026 26 1,000 1,102 33 1,069

Crédit Mutuel livret Bleu (3) 15,990 15,990 15,108 15,108

TOTAL 224,544 5,220 219,324 217,531 5,750 211,781

Of which, financial institutions 126,220 2,484 123,736 122,590 3,070 119,520

Of which, customers 98,324 2,736 95,588 94,941 2,680 92,261

(1) 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 is therefore not directly comparable with accrued interest reported in the table below.(2) Codevi deposits have been used to finance an issue of industrial development securities (Titres pour le Développement Industriel, or TDI) paying interest at theCodevi rate plus 1.5% up to the centralization rate and at the Codevi rate thereafter. Amounts capitalized on deposits are centralized the following year. (3) Until December 31, 1998 and in accordance with the memorandum of April 27, 1991 requiring funds collected on Crédit Mutuel’s livret Bleu to be used in the publicinterest, Caisse des Dépôts centralized 85% of the funds deposited with Crédit Mutuel and invested them for 15% in money market instruments, with the remaining85% 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.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. €9,594 million and €6,396 million asof December 31, 2004 (compared with €9,065 million and €6,043 million as of December 31, 2003).

B) RELATED ACCRUED INTEREST

(Euro millions) 12.31.2004 12.31.2003Livret A – CEP 1,425 1,718

Livrets A and B – CNE 1,062 1,258

LEP (1) 1,699 1,714

Livret Jeunes 44 41

Codevi 237 249

Home-purchase 905 880

PEP CNE 26 34

Crédit Mutuel livret Bleu (2)

TOTAL 5,398 5,894

Of which, financial institutions 2,887 3,198

Of which, customers 2,511 2,696

(1) Accrued interest on LEP loans as of December 31, 2004 does not take into account interest for the month of December for the bank and local savings bank networks, which has been recorded under “Miscellaneous payables” (€101 million as of December 31, 2004, compared with €124 million the previous year), as thecorresponding deposits are not centralized until January of the following year.(2) In accordance with the agreement of September 1, 2004 between the government and Crédit Mutuel, effective July 1, 2004, commission on the livret Bleu is paidmonthly instead of annually as was previously the case (see I-2 Notes to the financial statements).

SAVINGS FUNDS

119

C) DEDUCTIONS FROM INTEREST DUE TO DEPOSITORS

(Euro millions) 12.31.2004 12.31.2003Livret B – CNE 12

Home-purchase 6 17

PEP CNE 3

TOTAL 6 32

This relates to withholding tax and various social security contributions payable on taxable savings products.


12.31.2004 12.31.2003 12.31.2003(Euro millions) reclassified*Other liabilities 702 23 8

Accounts payable 11 15

Other payables 691 8 8

State levy outstanding 682

Income on CFF special fund payable to the State 9 8 8

Accruals and deferrals 2,653 2,419 701

Accrued charges 383 413 522

Amounts payable to centralizing networks (1) 282 284 284

Accrued charges on financial instruments 94

Home-purchase premium to be repaid 5 5

Interest payable on LEP deposits 101 124 124

Other accruals 15

Deferred income 2,102 1,931

On interest subsidies (2) 1,721 1,752

On financial instruments 381 179

Adjustment accounts on forward currency and financial instruments 152 68

Deferred gains on financial instruments 179

Other accruals 16 7

On loans 16 7

TOTAL 3,355 2,442 709

(1) Of which a €44 million installment to be paid for December 2004 as part of the establishment of a new Home Purchase agreement (see I-3 Notes to the financial statements). (2) Breakdown of interest subsidies: 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, 2004, €8 million in subsidies had not been received (€6 million as of December 31, 2003) and was therefore recorded under “Accruals, deferralsand other assets”.

* Details of reclassifications as of December 31, 2003:– allocation of interest subsidies on loans to accrual accounts in the amount of €1,752 million;– assets/liabilities set-off for the valuation of financial instruments in the amount of €26 million. These valuations are no longer classified under accrued chargesbut under adjustment accounts on financial instruments;– transfer of unallocated early repayments on housing loans to accrual accounts in the amount of €7 million;– transfer of accounts payable to accrued charges in the amount of €15 million.


Note 9 (cont’d)

12.31.2004 12.31.2003

(Euro millions) CEP CNE CEP CNEGross subsidies (1) 2,165 1,058 2,194 1,033

Taken to income statement (711) (579) (604) (543)

Eliminations between funds (2) (212) (328)

Sub-total 1,242 479 1,262 490

TOTAL 1,721 1,752

(1) ) Including subsidies on PRU loans: €120 million on CEP livret A and €84 million on CNE livret A and B loans as of December 31, 2004 (compared with €84 millionand €63 million, respectively, 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 the cost 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 amountpaid since 1995 and the change in valuation (see I-4 Notes to the financial statements), €116 million was written back as of December 31, 2004 (compared with €12 million as of December 31, 2003).

Note 10 – Provisions for risks and charges

Provision allocations (Euro millions) 12.31.2003 net of reversals 12.31.2004PLI and PPU (LEP) (1) 318 (43) 275

SDR and FIM loans (Codevi) (2) 3 (1) 2

Geothermal heating (livret A) (2) 12 (2) 10

PDR (livret A) (1) (6) 60 9 69

Loans at 3.45% (including PLUS) (livret A) (1) (7) 172 (92) 80

PLA-TS (livret A) (1) 328 (116) 212

PLA CGLLS loans (livret A) (3) – 6 6

Litigation (4) 7 2 9

Home-purchase (5) 568 31 599

Hedging instruments 7 1 8

TOTAL 1,475 (205) 1,269

(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 resulting actuarial lossadjusted to take account of payments, offers recorded as off-balance sheet commitments and an assessment as to the likelihood that the overall amount authorizedunder the loan program will be used (see I-4 Notes to the financial statements).(2) These loans have been restructured 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 restructuring.(3) Transfer to provisions for risks and charges of the provision for the PLA loan related to the premium paid at the time the CGLLS loans were assumed.(4) Including CFF provisions (€4 million).(5) Specific home-purchase provision (see III-10 Notes to the financial statements).(6) These loans have been fully subsidized by UESL since implementation of the new 2002-2004 program.(7) These loans were at 4.20% before August 1, 2003.

SAVINGS FUNDS

121

Note 11 – Fund for General Banking Risks

(Euro millions) 12.31.2003 Net allocations and reversals 12.31.2004General risks (CAD + Specific Savings Risks)

Livret A – CEP 685 87 772

Livrets A and B – CNE 408 114 522

LEP 99 32 131

Livret Jeunes 2 (1) 1

Codevi 91 (7) 84

Home-purchase (1) 974 (80) 894

PEP CNE 25 1 26

Sub-total 2,284 146 2,430

Contingent general risks (2)

Livret A – CEP 260 55 315

Livrets A and B – CNE 174 36 210

LEP 189 189

Home-purchase (3) 49 49

Sub-total 623 140 763

TOTAL 2,908 286 3,194

(1) ) Reversal of FGBR of €80 million related to the downgraded market risk on the available-for-sale portfolio and the transfer of securities from the available-for-saleto the held-to-maturity portfolio for home-purchase savings (see I-3 Notes to the financial statements).(2) (See III-11 Notes to the financial statements).(3) As of December 31, 2003, the €64 million provision for general contingent risks was written back in full as a result of the transfer of responsibility for the financialmanagement of the home-purchase savings fund to La Poste. As of December 31, 2004, an additional FGBR allocation of €49 million was recorded in order to main-tain risk coverage ratios at least equal to those in effect at end-December 2003 (see I-3 Notes to the financial statements).


Note 12 – Retained earnings

A) RESERVE FUNDS AND RETAINED EARNINGS

Other Appropriation(Euro millions) 12.31.2004 movements of 2003 earnings 12.31.2003 Reserve funds

CEP reserve fund 1,312 (675) (1) (2) 692 (3) 1,295

CNE reserve and guarantee fund 979 (288) (1) 319 (3) 948

LEP reserve fund 957 89 (1) (2) (19) (3) 887

Livret Jeunes reserve fund 63 7 (3) 56

FRFL 657 (682) 104 1,235

Sub-total (A) 3,968 (1,556) 1,103 4,421

Retained earnings

Livret A – CEP (37) (1) 37

Livrets A and B – CNE 3 (14) (1) 17

LEP (6) (1) 6

Codevi 36 (27) 63

Home-purchase 43 (4) 47

PEP CNE 29 18 11

FREL 85 2 83

SDR guarantee funds 1 1

Sub-total (B) 197 (57) (11) 265

SDR guarantee deposits (C) (4) 13 13

TOTAL (A + B + C) 4,178 (1,613) (5) 1,092 4,699

Eliminations (interfund transfers) (160) 40 (200)

Other eliminations 1 1

TOTAL (6) (159) 40 (199)

GRAND TOTAL 4,019 1,132 4,500

(1) The €57 million allocated to retained earnings is related to the change in accounting method in 2003 on inflation-indexed OATs (see III-3 Notes to the financial statements).(2) The FRGCE increased the FRLEP by €83 million.(3) Earnings transferred to the reserve funds correspond to the earnings of the primary funds (CEP livret A: €694 million; CNE livrets A and B: €290 million; LEP: €41 million (negative); livret Jeunes: €6 million) and of the reserve funds (CEP: €2 million (negative); CNE: €29 million; LEP: €22 million; livret Jeunes: €1 million).(4) Including 1% of loans paid to regional development companies (SDR) from Codevi funds.(5) Including State levy of €1,614 million (€629 million on the FRGCE, €303 million on the FRGCNE and €682 million remaining to be paid on the FRFL).(6) Corresponds to the restatement of capital gains and losses on loan transfers between funds.

SAVINGS FUNDS

123

B) UNAPPROPRIATED EARNINGS

Total earnings amounted to €1,266 million.Earnings, which are separately identifiable for each of the funds managed, are appropriated in accordance with applicable regulations:

(Euro millions) 2004 earnings Reserve funds (1) Unappropriated earningsLivret A – CEP 729 729

CEP reserve fund 100 100

Livrets A and B – CNE 266 266

CNE reserve fund 25 25

LEP (24) (24)

LEP reserve fund 19 19

Livret Jeunes (8) (8)

Codevi 51 51

Home-purchase

PEP CNE 1 1

Other funds 71 71

Sub-total 1,230 1,178 52

Eliminations (interfund transfers) (2) 36

TOTAL 1,266

(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, 2005 BEFORE STATE LEVY AND EXCLUDING THE FGBR

01.01.2005 12.31.2004

Unappropriated Reserve Appropriation Unappropriated Reserve(Euro millions) Total earnings funds of 2004 earnings Total earnings funds

Livret A – CEP 2,141 2,141 829 1,312 1,312

Livrets A and B – CNE 1,273 2 1,271 291 982 3 979

LEP 952 952 (5) 957 957

Livret Jeunes 55 55 (8) 63 63

Codevi 87 87 51 36 36

Home-purchase 43 43 43 43

PEP CNE 30 30 1 29 29

FRFL 726 726 69 657 657

FREL 87 87 2 85 85

SDR guarantee funds 1 1 1 1

Sub-total 5,395 250 5,145 1,230 4,165 197 3,968

SDR guarantee deposit 13 13 13 13

TOTAL 5,408 250 5,158 1,230 (1) 4,178 197 3,981

Eliminations (interfund transfers) (124) (124) 36 (160) (160)

Other eliminations 1 1 1 1

TOTAL (2) (123) (123) 36 (159) (159)

GRAND TOTAL 5,285 250 5,035 1,266 4,019 197 3,822

(1) Combined earnings of the funds, before eliminations.(2) Corresponds to capital gains and losses on loan transfers between funds.

The 2005 budget includes an estimate of €1,197 million for the levy on the reserves of the savings funds.


Note 13 – Credit risk on financing transactions

A discount of €14 million was applied to some loans restructured at below market rates, which corresponds to the present value of the difference between expected future payment flows before and after the Restructuring.

12.31.2004

Gross Gross Grossperforming non-performing irrecoverable

(Euro millions) loans loans loans (1) Provisions (1) TotalBreakdown by geographic region 107,959 4,958 45 (436) 112,526

Loans to financial institutions 7,665 11 (11) 7,665

France 7,665 11 (11) 7,665

Customer loans 100,294 4,958 34 (425) 104,861

France 100,257 4,958 34 (425) 104,824

Rest of world 37 37

Breakdown by term to maturity 107,959 4,958 45 (436) 112,526

Loans to financial institutions 7,665 11 (11) 7,665

Less than 3 months 508 11 (11) 508


1 to 5 years 1,740 1,740

More than 5 years 5,187 5,187

Customer loans 100,294 4,958 34 (425) 104,861

Less than 3 months 5,632 361 26 (273) 5,746

3 months to 1 year 3,012 126 1 (5) 3,134

1 to 5 years 16,916 678 3 (27) 17,570

More than 5 years 74,734 3,793 4 (120) 78,411

Breakdown of customer loans by sector 100,294 4,958 34 (425) 104,861

Low-income housing 63,270 2,074 (183) 65,161

Local governments 6,578 184 4 (10) 6,756

Public-sector administration 1,126 2 1,128

Public industrial and commercial entities 9,748 1,609 9 (182) 11,184

Private-sector administration 893 71 5 (16) 953

Commercial companies 1,198 1,004 1 (16) 2,187

Other 17,481 14 15 (18) 17,492

Provisions on financing transactions 402 34 436

Interbank loans

12.31.2003 11 11

Reclassifications (11) 11

12.31.2004 11 11

Customer loans

12.31.2003 504 30 534

Allocations 70 2 72

Reversals 178 3 181

Reclassifications 6 (6)

12.31.2004 402 23 425

(1) Interest related to irrecoverable loans is still accrued and provisions are established.

SAVINGS FUNDS

125

Note 14 – Credit risk on fixed income securities

Since the savings fund portfolio mainly comprises securities issued by companies rated A3 or higher and with no default risk, no secu-rities were downgraded to non-performing as of December 31, 2004.

Gross performing securities (Euro millions) as of 12.31.2004Breakdown by currency 121,308

Available-for-sale securities 92,365

Euro 92,365

Held-to-maturity securities 28,943

Euro 28,943

Breakdown by term to maturity 121,308


Less than 3 months 10,069

3 months to 1 year 13,743

1 to 5 years 36,596

More than 5 years 31,957



1 to 5 years 20,407


Breakdown by rating (1) 121,308


Aaa 70,307

Aa 9,013

A 2,284

Other (2) 10,761


Aaa 23,755

Aa 2,131

A 757

Other (2) 2,300

(1) According to Moody’s rating agency. (2) Rating not reported.


Note 15 – Off-balance sheet commitments

A) COMMITMENTS IN RESPECT OF FINANCING, GUARANTEES, SECURITIES AND OTHER COMMITMENTS GIVEN OR RECEIVED

12.31.2004 12.31.2003 12.31.2003(Euro millions) reclassified*

Commitments given in respectof financing, guarantees and securities

Financing commitments 10,937 8,910 8,910To financial institutions 2,570 1,389

Offers of loans 2,516 1,378Housing loans (1) 2,370 1,057Infrastructure loansOther loans (2) 146 321


Loans granted but not disbursed 1 9Housing loans 1 9

Other financing commitments (3) 52To customer loans 8,367 7,521 8,910

Offers of loans 4,929 4,188 4,188Housing loans 4,929 4,188 4,188

Undertakings to provide loans 752 972 2,352Housing loans 752 972 2,031Other loans 321

Loans granted but not disbursed 2,686 2,361 2,370Infrastructure loans (4) 38Housing loans 1,856 1,612 1,621Home-purchase loans 792 749 749

Guarantee commitments 38 38 388Securities pledged as guarantees 350Other guarantees given to financial institutions (5) 38 38 38Commitments given on securities 5Securities to be delivered 5

Commitments received with respect to financing, guarantees and securities

Guarantee commitments 81,068 76,265 76,265Guarantees received from the State and similar (6) (7) 77,345 1,008 1,008Guarantees received from financial institutions 3,608 3,560 3,560Other guarantees received (7) 115 71,697 71,697Commitments received on securities 193 74 74Securities to be received 193 74 74

Other commitments given and received

Other commitments given 352 352 2Securities given as guarantees (8) 350 350Real estate sales commitments 2 2 2Other commitments received 11 12 12Interest subsidies to be received on PLA loans (9) 11 12 12

(1) Caisse des Dépôts refinances financial institutions that issue PLI and PLS loans. It committed to refinance €1,630 million in PLS loans and €160 million in PLI loansin 2004, and €670 million in PLS loans and €160 million in PLI loans in 2003. As of December 31, 2004, the total unused portion of the lines was €2,263 million, com-prising €581 million for 2002-2003 and €1,682 million for 2004.(2) Commitment given to CEPME. (3) This commitment involves Ixis CIB.(4) Infrastructure loan granted to CNA.(5) This commitment involves CFF.(6) Of which a commitment received from the State guaranteeing a €983 million loan – including accrued interest – classified as non-performing (see Note 2C).(7) Reclassification in 2004 from other guarantee commitments received to guarantee commitments received from the State and similar (local governments).(8) Securities placed in escrow as part of the Relit Grande Vitesse settlement/delivery system.(9) This interest subsidy relates to PLA loan agreements in the French overseas departments that have been signed but for which the corresponding funds have notyet been released. With each release of funds, the subsidies are allocated to liabilities (see Note 9B).

* Details of reclassifications as of December 31, 2003:– reclassification from undertakings to provide loans to offers of loans in the amount of €1,380 million;– transfer of the guarantee on securities to other commitments given in the amount of €350 million.

SAVINGS FUNDS

127

B) FORWARD FINANCIAL INSTRUMENTS

12.31.2004 12.31.2003

(Euro millions) Purchase/Borrowing Sale/Loan Purchase/Borrowing Sale/Loan

FUTURES 11,894 11,894 6,082 6,082

OTC markets 11,894 11,894 6,082 6,082

Interest rate swaps (1) 11,894 11,894 6,082 6,082

Fair value (2) 3,802 3,150

OPTIONS 19 620

OTC markets 19 620

Caps 19 21

Fair value (2)

Swaptions (3) 540

Index options 59

(1) Corresponds to the notional value of the commitment. (2) The fair value information for financial instruments is reported in accordance with the new standard adopted on November 23, 2004 by the CRC relating to thetransposition into French law of European Directives on the fair value of derivative financial instruments (see III-8 Notes to the financial statements).The fair value, which is derived from the investment management system, represents the swap valuations based on market data as of December 31, 2004. Since thederivative transactions of the savings funds are hedging swaps, the fair value reported does not reflect the substance of the Savings Fund Division’s transactions.(3) In early 2003, swaptions expiring in January 2004 were purchased in the amount of €540 million in order to hedge against any depreciation in the value of OATsmaturing in 2012 and 2016 as a result of a significant increase in interest rates. Since interest rates fell relative to the purchase and strike price levels, the options didnot produce any income.

Interest rate swaps consist of:

• €1,539 million (€1,642 million as of December 31, 2003) related to loans:– €1,145 million (€1,195 million as of December 31, 2003) in connection with the refinancing of CFF’s PLI loans;

– €381 million (€433 million as of December 31, 2003) in connection with the refinancing of variable-rate loans to regional develop-ment companies (SDR);

– €13 million (€14 million as of December 31, 2003) in connection with the refinancing of variable rate loans.

• €10,355 million (€4,440 million as of December 31, 2003) of securities hedging transactions in the form of asset swaps exclusively.Counterparties for these asset swaps are banking institutions rated at least Aa.


Note 16 – Credit risk on off-balance sheet commitments

Since no signature or forward financial instrument commitments presented any default risk as of December 31, 2004, none was down-graded to non-performing.

A) SIGNATURE COMMITMENTS

Gross commitments (Euro millions) as of 12.31.2004Breakdown by geographic area

Guarantee commitments given 38

France 38

B) FORWARD FINANCIAL INSTRUMENTS (OTC TRANSACTIONS)

Gross commitments (Euro millions) as of 12.31.2004Breakdown by geographic area

Futures 11,894

France 11,894

Options 19

France 19

Breakdown by term to maturity

Futures 11,894

Less than 3 months 71


1 to 5 years 1,679


Options 19

More than 5 years 19

Note 17 – Interest and similar income

A) TREASURY AND INTERBANK TRANSACTIONS

(Euro millions) 12.31.2004 12.31.2003Revenues from cash advances (1) 32 39

Revenues from securities received under collateralized fixed repurchase agreements (1) 95 98

TOTAL 127 137

(1) Securities purchased under collateralized resale agreements and cash balances are remunerated in accordance with market practices.

SAVINGS FUNDS

129

B) FINANCING TRANSACTIONS

12.31.2004 12.31.2003 12.31.2003(Euro millions) reclassified*Interest revenues (1) 4,264 4,720 4,720

Infrastructure loans 255 332 335

Housing loans 2,917 3,327 3,324

Other loans 1,092 1,061 1,061

Penalties received on early repayments (2) 40 17 15


Housing loans 17 7 7

Other loans 7

Net reversals of subsidies (3) 99 99 97

Infrastructure loans 2 2


Capital gains or losses (4) 206 162 162


Net income or expense on hedging transactions 11 11 (10)

Housing loans (21)

Other loans 11 11 11

Provisions net of reversals 65 3 4


Housing loans (5) 60 7 8

Other loans 2 (6) (6)

TOTAL 4,685 5,012 4,988


Housing loans 3,297 3,600 3,577

Other loans 1,112 1,066 1,066

Of which, financial institutions 324 374 350

Of which, customers 4,361 4,638 4,639

(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 12A). Including amortization of the net premiums on loans assumedfrom CGLLS (€170 million as of December 31, 2004 and €122 million as of December 31, 2003).(5) ) Including reversal of the full provision relating to the premiums on the CGLLS loans (€6 million as of December 31, 2004 and €3 million as of December 31, 2003),as this provision was transferred to provisions for risks and charges (see Note 2B).

* Details of reclassifications as of December 31, 2003:– itemization of revenues from infrastructure loans by type (early repayment penalties and interest subsidy reversals);– allocation of interest on the PLI loan to Entenial to interest on housing loans in the amount of €3 million;– transfer of earnings from PLI swaps to net loss on financial instruments in the amount of €21 million;– transfer of the reversal of the provision on the CGLLS premium to cost of risk in the amount of €1 million.


Note 17 (cont’d)

C) REVENUES FROM FIXED INCOME SECURITIES

12.31.2004 12.31.2003 12.31.2003(Euro millions) reclassified*Available-for-sale securities 3,121 3,376 3,339

Public-sector and similar securities 1,895 2,134 2,134

Government securities 1,209 1,323 1,323

Treasury bills 686 811 811

Bonds 657 702 702

Other fixed income securities 569 540 540

Net loss on hedging transactions (37)

Held-to-maturity securities 1,272 1,241 1,241

Public-sector and similar securities 816 868 868

Government securities 766 791 791


Bonds 380 305 305


TOTAL 4,393 4,617 4,580

* Details of reclassifications as of December 31, 2003: transfer of net loss on hedging transactions to interest and similar expenses on the fixed income portfolio.

Note 18 – Interest and similar expenses

A) TREASURY AND INTERBANK TRANSACTIONS

(Euro millions) 12.31.2004 12.31.2003Charges relating to current accounts (1) (9) (3)

Charges relating to securities sold under collateralized fixed repurchase agreements (1) (102) (102)

Charges on term borrowings (9) (287)

Loans from CFF (PLI) (2) (54) (54)

Other loans from CFF (4) (4)

Loans from IXIS CIB (PPU) (4) (4)

Loans assumed from CGLLS (3) 57 (220)

Advances from Caisse des Dépôts – Central Sector (4) (4)

TOTAL (120) (392)

(1) Securities sold under collateralized repurchase agreements and cash balances are remunerated in accordance with market practices.(2) Including €57 million in accrued interest and €3 million in reversals relating to the discount as of December 31, 2004 on PLI-PLS refinancing loans sold to CFF by Ixis CIB.(3) As of December 31, 2004, corresponds to the reversal of the premium on the CGLLS loans. As of December 31, 2003, includes €435 million in early repayment penalties on the Ixis CIB loan, €105 million in interest and €260 million in net reversals of premiums relating to the early repayment in 2003 of the CGLLS loans to Ixis CIB.

SAVINGS FUNDS

131

B) DEPOSITS

(Euro millions) 12.31.2004 12.31.2003Interest paid to depositors (6,032) (6,811)

Livret A – CEP (1,443) (1,742)

Livrets A and B – CNE (1,073) (1,271)

LEP (1,840) (1,862)


Codevi (313) (334)

Home-purchase (904) (884)

PEP (28) (35)

Livret Bleu (387) (642)

Tax withheld at source on deposits (75) (73)

Livret B – CNE (12) (12)

Home-purchase (59) (57)

PEP (4) (4)

TOTAL (6,107) (6,884)

Of which, financial institutions (3,429) (4,016)

Of which, customers (2,678) (2,868)

These expenses represent:

• interest paid by the savings funds managed by Caisse des Dépôts to which is added, in the case of the Crédit Mutuel livret Bleu, thecommission paid to the network through January 1, 2004.

The interest rates paid on the various passbook deposits are regulated, and were as follows:

– livret A: 2.25% since August 1, 2003. Beginning August 1, 2004, the rates on the first passbook deposits have been equal to thearithmetic average between the monthly average for 3-month Euribor and inflation in France, as measured by the INSEE consumerprice index for all households over the most recent 12-month period and increased by a quarter point (rounded off to the nearestquarter point or by default to the next highest quarter point);

– livret B CNE: 2.25% since September 16, 2003;

– LEP: 4.25% from July 1, 2000 to July 31, 2004, and 3.25% since August 1, 2004;

– livret Jeunes: 4.25% since October 1, 2000;

– Home-purchase:

- savings plan: rates, excluding the premium, depending on the generation; 2.50% since August 1, 2003,

- passbook savings: 1.50% since August 1, 2003;

– livret Bleu

- for individuals: 2.45% since August 1, 2003,

- for legal entities: 2.37% since August 1, 2003.

Pursuant to article L221-18 of the Monetary and Finance Code, new PEP accounts may no longer be opened since September 25, 2003.As for existing PEP accounts, terms remain the same. The interest on PEP CNE accounts, which is set each year for the following year,was 3.7% for 2003 and 3.9% for 2004.

• Interest on industrial development securities (TDI) issued on Codevi accounts (3.75% since August 1, 2003, see Note 8A).


Note 19 – Revenues from variable income securities

(Euro millions) 12.31.2004 12.31.2003Equities 198 164

Mutual funds 1 1

Other 2 1

TOTAL 201 166

Note 20 – Net commissions

A) PAYMENTS TO CENTRALIZING NETWORKS

(Euro millions) 12.31.2004 12.31.2003Livret A – CEP (781) (789)

Livrets A and B – CNE (739) (734)

LEP (330) (313)


Home-purchase (1) (500) (316)

PEP (9) (10)

Livret Bleu (2) (205)

TOTAL (2,572) (2,169)

Of which, financial institutions (1,190) (978)

Of which, customers (1,382) (1,191)

(1)Following the implementation in January 2004 of the new agreement relating to the fund centralization terms and financial management for CNE home-purchasesavings, La Poste is paid new commission rates (see I-3 Notes to the financial statements).For 2003, commissions net of overpayments: €122 million for the years 1998 to 2002. (2) Signature on September 1, 2004 of a memorandum between Crédit Mutuel and the French State establishing monthly commission payments on the livret Bleu,effective retroactively to July 1, 2004 (see I-2 Notes to the financial statements). A lump sum was also paid at the time of the agreement to cover the first six monthsbefore the new monthly payment schedule took effect.

B) OTHER COMMISSIONS

12.31.2004 12.31.2003

(Euro millions) Revenues Expenses Revenues ExpensesCommissions on loan management 1 1 172

Home-purchase (1) 172

Other loans 1 1

Other commissions (2) 15 3 10

Sub-total 1 15 4 182

NET TOTAL (14) (178)

(1) Following the implementation in January 2004 of the new agreement relating to the fund centralization terms and financial management for CNE home-purchasesavings, La Poste is paid new commission rates and is no longer compensated separately for loan management (see I-3 Notes to the financial statements and Note 20A).As of December 31, 2003, La Poste was remunerated for the management of these loans in accordance with terms set forth by the previous agreement. (2) Including securities custody fees charged by the custodian CDC-Ixis in the amount of €14 million as of December 31, 2004 and €10 million as of December 31, 2003.

SAVINGS FUNDS

133

Note 21 – Gains and losses on available-for-sale securities

A) NET GAINS AND LOSSES ON THE SALE OF AVAILABLE-FOR-SALE SECURITIES

12.31.2004 12.31.2003 12.31.2003(Euro millions) reclassified*Fixed income securities 234 456 462

Public-sector and similar securities 202 320 320

Government securities 187 275 275


Bonds 13 86 86


Variable income securities 438 278 278

Equities 256 245 245

Mutual funds 35 32 32

Other variable income securities 147 1 1

TOTAL (1) 672 734 740

(1) Including €9.5 million in acquisition fees as of December 31, 2004 and €1 million as of December 31, 2003.

* Details of reclassifications as of December 31, 2003: transfer of capital gain on held-to-maturity securities to gains or losses on fixed assets in the amount of €6 million.

B) PROVISIONS AGAINST AVAILABLE-FOR-SALE SECURITIES AND SIMILAR, NET OF REVERSALS

(Euro millions) 12.31.2004 12.31.2003Against available-for-sale securities 320 560

Public-sector and similar securities 23 (25)

Bonds and other fixed income securities 13 (12)

Equities and other variable income securities 284 597

Against portfolio securities (1)

Equities and other variable income securities (1)

NET TOTAL 320 559


SAVINGS FUNDS

Note 22 – Other income and expenses from banking operations

12.31.2004 12.31.2003 12.31.2003reclassified*

(Euro millions) Revenues Expenses Revenues Expenses Revenues ExpensesNet income from tangible fixed assets 8 5 10 6 10 6

Revenues and expenses 8 1 10 1 10 1

Depreciation 4 5 5

Thirty-year limit on unused livret A CNE accounts 3 3 3 –

Accrued expenses – Special CFF fund 1 1

Lump-sum home-purchase expenses (1) 11

Other 1 11 3 6 6 3

Sub-total 12 27 16 13 19 10

NET TOTAL (15) 3 9

(1) Lump-sum rebilling of operating expenses in accordance with the home-purchase savings management agreement (see I-3 Notes to the financial statements).

* Details of reclassifications as of December 31, 2003: – transfer of interest on PLI advance to Entenial to interest and related income in the amount of €3 million;– allocation of provision charge for disputes involving land reserves to other income and expenses from banking operations in the amount of €2 million.

Note 23 – General and administrative expenses

(Euro millions) 12.31.2004 12.31.2003Operating expenses billed by Caisse des Dépôts (1) (91) (86)

Of which:

Personnel expenses (20) (20)

Information systems expenses (9) (10)

Other Caisse des Dépôts services (53) (50)

TOTAL (91) (86)

(1) The Central Sector provides the following services for the savings funds:– banking: cash centralization, cash processing, and intermediation for market transactions;– administration: various resources made available, notably staff and equipment.These services are rebilled to the savings funds.

135

Note 24 – Cost of risk

12.31.2004 12.31.2003 12.31.2003(Euro millions) reclassified*

Provisions for non-performing loans and doubtful receivables, net of reversals (1) 43 17 17

Provisions for risks and charges, net of reversals 208 (43) (49)

Loans (2) 245 (3) (3)

PLA CGLLS premium (3) (6)

Home-purchase (31) (40) (40)

Litigation (2)

Hedging instruments (4)

Gains or losses on irrecoverable loans 21 (1) (1)

Infrastructure loans (4)

Housing loans (1) (1)

Other loans (4) (17)

(1) Including €76 million in provision reversals on a €983 million loan totally guaranteed by the French State, recorded off-balance sheet (see Notes 2C and 15). (2) Loan provision reversal related to change in provision valuation on the basis of loans and commitments recorded on the balance sheet and off-balance sheet as well as an assessment of the likelihood that the overall loan amounts authorized will in fact be used (see I-4 Notes to the financial statements).(3) Transfer to provision for risks and charges of the premium paid when the CGLLS loans were assumed.(4) Relates to a €983 million loan totally guaranteed by the French State, recorded off-balance sheet (see Notes 2C and 15).

* Details of reclassifications as of December 31, 2003: – transfer of provision charge for disputes involving land reserves to other income and expenses from banking operations in the amount of €2 million; – transfer of provision charges and reversals on financial instruments to net income or loss on financial instruments in the amount of €4 million.

Note 25 – Transfers to the Fund for General Banking Risks, net of reversals

(Euro millions) 12.31.2004 12.31.2003General risks (CAD + specific savings risks) (146) (371)

Livret A – CEP (87) (138)

Livrets A and B – CNE (114) (73)

LEP (32) (99)

Livret Jeunes 1 3

Codevi 7 (2)

Home-purchase (1) 80 (77)

PEP – CNE (1) 14

Contingent general risks (140) 64

Livret A – CEP (55)

Livrets A and B – CNE (36)

Home-purchase (2) (49) 64

NET TOTAL (286) (307)

(1) Reversal of FGBR of €80 million related to the downgraded market risk on the available-for-sale portfolio and the transfer of securities from the available-for-saleto the held-to-maturity portfolio for home-purchase savings (see I-3 Notes to the financial statements).(2) As of December 31, 2004, an allocation of €49 million for home-purchase savings contingent general risks was recorded in order to maintain risk coverage ratiosat least equal to those in effect at end-December 2003 (see I-3 Notes to the financial statements).


SAVINGS FUNDS

Note 26 – Reconciliation of reported and pro forma financial statements as of December 31, 2003

A) BALANCE SHEET

12.31.2003(Euro millions) Notes reclassified*

ASSETSInterbank and similar transactions 81,995

Public-sector securities and similar 3 72,026Advances and loans to financial institutions 9,969

Ordinary accounts 1 1,536Infrastructure loans 2 42Housing loans 2 2,599Other loans 2 5,558Miscellaneous other loans 1 234

Customer transactions 2 103,690

Other loans to customers 103,690Infrastructure loans 4,749Housing loans 82,708Other loans 16,233

Bonds, equities and other fixed and variable income securities 3 46,309

Bonds and other fixed income securities 40,327Equities and other variable income securities 5,982Long-term equity holdings 4 1Tangible fixed assets 5 4Other assets 6 9Accruals and deferrals 6 10

TOTAL ASSETS/LIABILITIES 232,018

LIABILITIESInterbank and similar transactions 124,572

Advances and loans from financial institutions 124,572Ordinary accounts 7 148Term loans 7 1,706Centralized deposits 8 119,520

Livret A – CEP 63,905Livret d’Epargne Populaire 34,327Other 21,288

Accrued interest on deposits 8 3,198Customer transactions 94,989

Centralized deposits 8 92,261Livrets A and B – CNE 47,950Home-purchase 28,387Livret d’Epargne Populaire 11,691Other 4,233

Accrued interest on deposits 2,696Deduction from interest payable to depositors 32

Other liabilities 9 23Accruals and deferrals 9 2,419Provisions for risks and charges 10 1,475Interest subsidiesFund for General Banking Risks 11 2,908Retained earnings – excluding FGBR 12 5,632

Ordinary retained earnings 4,500Unappropriated income 1,132

* Details of reclassifications: on the assets side, financing transactions have been itemized into interbank and similar transactions and customer transactions.

Accrual and deferral accounts and other assets, which were previously reported on one line, are now presented on two separate lines. On the liabilities side, savingsdeposits centralized by Caisse des Dépôts have been itemized by interbank and similar transactions and customer transactions. Accrual and deferral accounts andother liabilities, which were previously reported on one line, are now presented on two separate lines.

137

(1) Reclassification of cash accounts in assets and liabilities in the amount of €148 million.(2) Reclassification of the PLI advance to Entenial to housing loans in the amount of €92 million.(3) Reclassification of unallocated early repayments on housing loans to accruals and deferrals on the liabilities side in the amount of €7 million.(4) Reclassification of unallocated early repayments on home-purchase savings loans to accruals and deferrals on the assets side in the amount of €4 million.(5) Assets and liabilities set-off of adjustment accounts on financial instruments in the amount of €26 million.(6) Distinction between other assets-liabilities and accrual and deferral accounts.(7) Reclassification of loan subsidies to accruals and deferrals on the liabilities side in the amount of €1,752 million.

12.31.2003Changes reported

ASSETS8,347 73,648

72,026 Public-sector securities and similar8,347 1,622 Interbank and treasury transactions

148 (1) 1,388 Ordinary accounts42

2,599 (2) (3)5,558 (4)

234 Other amounts due by financial institutions(8,104) 111,794 Financing transactions

(8,104) 111,794(42) 4,791 Infrastructure loans

(2,500) (2) 85,208 Housing loans(5,562) (4) 21,795 Other loans

46,309

40,327 Bonds and other fixed income securities5,982 Equities and other variable income securities

1 Long-term equity holdings and other long-term investments4 Tangible fixed assets

(124) (2) (4) (5) 133 Accruals, deferrals and other assets10 (6)

129 231,889 TOTAL ASSETS/LIABILITIES

LIABILITIES122,866 1,706 Interbank and treasury transactions

122,866 1,706148 (1)

1,706 Term loans119,520 Savings deposits centralized with Caisse des Dépôts63,90534,32721,2883,198

(122,718) 217,707 Savings deposits centralized with Caisse des Dépôts

(119,520) 211,781 Centralized deposits(63,905) 111,855 Livrets A and B

28,387 Home-purchase(34,327) 46,018 Livret d’Epargne Populaire(21,288) 25,521 Other(3,198) 5,894 Accrued interest on deposits

32 Deduction from interest payable to depositors(686) (2) (3) (5) 709 Accruals, deferrals and other liabilities

2,419 (6) (7)1,475 Provisions for risks and charges

(1,752) (7) 1,752 Subsidies2,908 Fund for General Banking Risks5,632 Retained earnings – excluding FGBR

4,500 Ordinary retained earnings1,132 Unappropriated earnings


SAVINGS FUNDS

Note 26 (cont’d)

B) OFF-BALANCE SHEET

12.31.2003(Euro millions) reclassified*

Commitments given in respect of financing, guarantees and securities

Financing commitments 8,910

To financial institutions 1,389Offers of loans 1,378

Housing loans 1,057Other loans 321

Undertakings to provide loans 2Housing loans 2

Loans agreed, not disbursed 9Housing loans 9

To customers 7,521Offers of loans 4,188

Housing loans 4,188Undertaking to provide loans 972

Housing loans 972Other loans

Loans agreed, not disbursed 2,361Infrastructure loansHousing loans 1,612Home-purchase loans 749

Guarantee commitments 38

Securities given as guarantees

Other guarantees to financial institutions 38

Commitments received in respect of financing,guarantees and securitiesGuarantee commitments 76,265Guarantee commitments receivedfrom the State and similar 1,008

Guarantee commitments received from financial institutions 3,560Other guarantee commitments received 71,697Commitments received in respect of securities 74Securities to be received 74

Other commitments given and receivedOther commitments given 352

Securities given as guarantees 350Real estate sales commitments 2Other commitments received 12

Subsidies to be received on PLA loans 12

Commitments given and receivedin respect of financial instrumentsCommitments given 6,082

Futures 6,082Commitments received 6,702

Futures 6,082Options 620

* Details of reclassifications as of December 31, 2003: financing commitments have been itemized between interbank and customer transactions.

139

(1) Reclassification of undertakings to grant loans to offers of loans in the amount of €1,380 million.(2) Transfer of the guarantee on securities to other commitments given in the amount of €350 million.


Commitments given in respect of financing, guarantees and securities

8,910 Financing commitments

1,3891,378 (1)1,057

3212 (1)299

(1,389) 8,9104,188 Offers of loans4,188 Housing loans

(1,380) (1) 2,352 Undertaking to provide loans(1,059) 2,031 Housing loans

(321) 321 Other loans(9) 2,370 Loans agreed, not disbursed

Infrastructure loans(9) 1,621 Housing loans

749 Home-purchase loans(350) 388 Guarantee commitments

(350) (2) 350 Securities pledged as guarantees

38 Other guarantees to financial institutions

76,265 Guarantee commitmentsGuarantee commitments received

1,008 from the State and similar

Guarantee commitments received3,560 from financial institutions

71,697 Other guarantee commitments received74 Commitments received in respect of securities

74 Securities to be received

Other commitments given and received350 2 Other commitments given

350 (2) Securities given as guarantees2 Real estate sales commitments

12 Other commitments received

12 Subsidies to be received on PLA loans

Commitments given and received in respect of financial instruments

6,082 Commitments given

6,082 Futures6,702 Commitments received

6,082 Futures620 Options


SAVINGS FUNDS

Note 26 (cont’d)

C) INCOME STATEMENT

12.31.2003(Euro millions) reclassified*

Interest and similar income 9,766

Treasury and interbank transactions 511Financing transactions 374Other 137

Customer transactions 4,638Financing transactions 4,638

Revenues from fixed income securities 4,617Interest and similar expenses (7,313)

Treasury and interbank transactions (4,408)Deposits (4,016)Other (392)

Customer transactions (2,868)Deposits (2,868)

Fixed income securities (37)Revenues from variable income securities 166Commissions received 4

Other commissions 4Commissions paid (2,351)

Payments to centralizing networks (2,169)Payments related to financial institutions network (978)Payments related to customer network (1,191)

Other commissions (182)

Gains or losses on trading transactions (22)

Foreign exchange transactions 2Financial instrument transactions (24)

Gains or losses on available-for-saleand similar securities 1,293

Available-for-sale securities 734Provisions net of reversals 559Other net operating banking revenues and expenses 3

NET BANKING INCOME 1,546

General and administrative expenses (86)

GROSS INCOME FROM OPERATIONS 1,460Cost of risk (27)Provisions on non-performing loans, net of reversals 17

Provisions for risks and charges, net of reversals (43)Losses or gains on irrecoverable loans (1)

NET INCOME FROM OPERATIONS 1,433

Gains or losses on fixed assets 6

NET INCOME FROM ORDINARY ACTIVITIES 1,439

Net movement in the FGBR (307)

NET INCOME 1,132

* Details of reclassifications: interest and similar income from financing transactions have been broken down into interest and similar income on interbank transactions and on customer transactions. Interest and similar expenses on deposits have been broken down into treasury and interbank transactions and customer transactions.Net commissions previously reported on one line are now itemized into revenues and expenses on two separate lines.

141

(1) Reclassification of interest on the advance to Entenial to financing transactions in the amount of €3 million.(2) Transfer of hedging swap gain or loss to gain or loss on financial instruments in the amount of €21 million.(3) Allocation of net loss on swaps to interest and similar expense on the fixed income portfolio in the amount of €37 million.(4) Reclassification of provisions on swaps in the amount of €3 million to gains and losses on transactions.(5) Reclassification of capital gains and losses on held-to-maturity securities to gains or losses on fixed assets in the amount of €6 million.(6) Reclassification of provision charge for disputes involving land reserves to other income and expenses from banking operations in the amount of €3 million.


61 9,705 Interest and similar income

374 137 Treasury and interbank transactions374 (1)

137(350) 4,988 Financing transactions(350) (2) 4,988

37 (3) 4,580 Fixed income transactions(37) (7,276) Interest and similar expenses

(4,016) (392) Treasury and interbank transactions(4,016)

(392)4,016 (6,884) Deposits4,016 (6,884)

(37) (3)166 Revenues from variable income securities

4

4(4) (2,347) Net commissions

(2,169) Payments to centralizing networks (978)978 (2,169)

(4) (178) Other commissions

Gains or losses (24) 2 on trading securities

2 Foreign currency transactions(24) (2) (4) Financial instrument transactions

Gains or losses on available-for-sale (6) 1,299 securities

(6) (5) 740 Available-for-sale securities559 Provisions net of reversals

(6) (1) (6) 9 Other net operating banking revenues and expenses

(12) 1,558 NET BANKING INCOME

(86) General and administrative expenses

(12) 1,472 GROSS INCOME FROM OPERATIONS6 (33) Cost of risk

Provision charges net of reversals 17 on non-performing loans

Provisions for risks and charges 6 (4) (6) (49) net of reversals

(1) Gains or losses on irrecoverable loans

(6) 1,439 NET INCOME FROM OPERATIONS

6 (5) Gains or losses on fixed assets

1,439 NET INCOME FROM ORDINARY ACTIVITIES

(307) Net movement in the FGBR

1,132 NET INCOME


SAVINGS FUNDS

Independent Auditors’ report on the financial statements of the savings funds centralizedby Caisse des dépôts et consignationsYear ended December 31, 2004

In accordance with the assignment entrusted to us, we herebypresent our report for the year ended December 31, 2004, on:

• our audit of the financial statements of the savings funds centralized by Caisse des dépôts, as attached to this report;

• the justification of our assessments;

• specific verifications.These financial statements have been approved by theChairman and Chief Executive Officer. Our role is to express anopinion on these financial statements based on our audit.

1 – Opinion on the financial statementsWe conducted our audit in accordance with the professionalstandards applied in France. Those standards require that weplan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material mis-statement. An audit includes examining, on a test basis, evi-dence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accountingprinciples used and significant estimates made by manage-ment, as well as evaluating the overall presentation of the finan-cial statements. We believe that our audit provides a reasonablebasis for our opinion. In our opinion, the financial statements present fairly the resultsof the savings funds centralized by Caisse des dépôts etconsignations for the year ended December 31, 2004 as well astheir assets, liabilities and financial position at that date, inaccordance with French accounting regulations and generallyaccepted accounting principles. The above opinion notwithstanding, we call your attention to Notes IIand 26 to the financial statements concerning this year’s change inpresentation of the financial statements of the savings funds.

2 – Justification of our assessmentsIn accordance with the provisions of article L. 225-235 ofFrance’s Commercial Code (Code de commerce) relating to thejustification of our assessments, we call your attention to the fol-lowing elements:

The setting aside of provisions for credit risks and for lossesresulting from loans granted at interest rates lower than the costof the funds, and transfers to the Fund for General BankingRisks are areas requiring the use of significant accounting esti-mates within the savings funds centralized by Caisse desdépôts et consignations:

• provisions have been set aside to cover the credit risks inherentin the activities (Note III §2 and Notes 2, 13 and 24 to the financialstatements). As part of our assessment of these estimates, weexamined the control system for monitoring credit risks, theassessment of non-collection risks and their coverage by spe-cific provisions;

• provisions have been set aside to cover certain losses arisingfrom programs of loans granted at interest rates lower than thecost of the funds (Notes I §4 and III §10 and Note 10 to thefinancial statements). As part of our assessment of these esti-mates, we examined the control system for determining theexpected actuarial losses and their coverage by provisions forrisks and charges;

• funds for General Banking Risks have been set aside (Note III§11 and Notes 11 and 25 to the financial statements) that arein addition to the specific reserves set aside for each savingsfund. As part of our review, we examined the methods used tocalculate these funds so that they reached the minimum levelof retained earnings required by the banking regulations appli-cable to counterparty and market risks.

Our assessments have led us to the conclusion that these esti-mates are reasonable.The assessments were made in the context of our audit of thefinancial statements, taken as a whole, and therefore con-tributed to the formation of the unqualified opinion expressed inthe first part of this report.

3 – Specific verificationsWe also examined the information provided in the managementreport. We have no observations to make as to the fairness ofthat information and its conformity with the financial statements.


The Independent AuditorsPricewaterhouseCoopers Audit Mazars & GuérardGérard Hautefeuille Mazars

Guillaume Potel Pierre Masieri


143

Labor, environmentaland sustainable development informationThe structure of the labor and environmental information presented below is based on article 116 of the Law on New EconomicRegulations (NRE) that applies to listed companies in France. Where relevant, reference is made to the indicators recommended by theGlobal Reporting Initiative (GRI) or derived from the social balance sheet (BS).

Caisse des Dépôts’ commitmentsCaissedes Dépôts

Initiative and promoter(s) Subject adhesion For more informationCharter of Public Companies for Commitment in 5 areas: October 1999 www.caissedesdepots.fr/Sustainable Development – competencies, personnel, GB/caisse/doc/EDF, GDF, ONF, VNF, SNCF, ADP, RATP technology, research, region charteentreprisespubliques.pdfand Caisse des Dépôts

UN Global Compact Respect for 10 socially June 2000 www.pactemondial.orgresponsible business principles

Financial institutions’ declaration Financial institutions December 2000 www.uneptie.orgfor the environment and and environmental protection sustainable development – UNEP

Charter for Diversity Fight against discrimination October 2004 www.institutmontaigne.org/within the Company – within the company pub.php?id=75Institut Montaigne/AFEP

Carbon Disclosure Project – Survey of 500 leading January 2005 www.cdproject.netBritish government multinational corporationsand 143 institutional investors on their CO2 emissions

Labor dataThe figures below apply to the scope of the Public Institution (PI) of Caisse des Dépôts, or 4,625 active permanent employees in 2004,including 3,397 public-sector and 1,228 private-sector employees.

> Employees and types of contracts

Indicator 2004 2003 Comments References

Total active employees in PI 4,753 4,768 GRI/NRE/BS

Of which, permanent (civil servants, 4,625 4,620open-ended contracts)

Of which, non-permanent (fixed-term 128 148 Fixed-term contracts under general law,contracts, integration contracts) CES (employment solidarity contracts)/CEC

(consolidated employment contracts) and apprentices

Number of apprentices during the year 124 138 Apprenticeships of more than 1 week BS

> Recruiting, dismissals and employment renewals

Indicator 2004 2003 Comments ReferencesNew employees for the year 260 336 Recruitments + reintegrations GRI

Permanent and non-permanent PI employees

Of which, open-ended contracts 115 168

Of which, fixed-term contracts (including 145 168CES and apprenticeships)

Dismissals or firings for leaving the job 7 11 Permanent representatives active in the PI NRE

Net permanent job creations +18 +85 Public- and private-sector jobs in the PI GRI-LA2

Average age (in years) 45.5 44.9 Permanent and non-permanent BSpersonnel in the PI and subsidiaries

Average job tenure (in years) 20.2 19.68 Active personnel in the PI and subsidiaries BS

Turnover (%) 4.8 5.1 Permanent representatives in the PI GRI-LA2

SUSTAINABLE DEVELOPMENT



> Organization and workweek

The company agreement on the workweek signed in November 2001 calls for 1,600 hours worked per year, 213 workdays and 11 workday reductions. The main causes of absenteeism, as a percent of the total number of days absent in 2004 were: illness (49%),work stoppages due to major illness and long-term work stoppages (28%), maternity and paternity (10%), family leave (10%) and accidents (3%).


Theoretical average number of 213 211 Employees excluding those with BSdays worked per year per employee fixed number of working days

(87% (1) of PI employees in 2003)

Number of full-time employees 3,951 3,968 PI employees NRE

Number of part-time employees 787 774 PI employees NRE

Proportion of part-time agents (%) 16.6 16.2 PI employees NRE

Absentee rate (%) 5.7 6.3 Percentage of number of GRI/NREtheoretical working days

Number of days absent per agent (2) 12.2 13.3 In working days for permanent and non- GRI/NREpermanent agents compensated in the PI

> Equal opportunities for men and women

An agreement on equal opportunities for men and women in the financial group was signed in June 2004. It includes quantified targetsin areas such as the percentage mix and compensation, to be achieved through training, promotion and recruiting initiatives.


Proportion of women in workforce (%) 61.4 61.2 In the PI NRE

Proportion of managers in workforce (%) 33 32 “Managers” includes NREprivate-sector managersand category A civil servants

Proportion of women managers 46 45 NREin the management category (%)

Average salary of women relative 76.7 77.5 Full-time permanent employees in the PI NREto average salary of men (3) (%)

> Employment and insertion of disabled workers

In the agreement on employment, job mobility, training and labor relations signed in December 2004, Caisse des Dépôts made a commitment to recruit 48 disabled workers before December 31, 2005, i.e. 32 people to be recruited in 2005. The creation of thesejobs will involve an exceptional procedure, and the Human Resources Department will strive through job postings to ensure the bestpossible fit between the disabled employee and the nature of the job to be performed.


Number of disabled workers (individuals) 118 113 Accounted for as disabled workers NREunder the 1987 Law. PI scope

Amount of contracts signed with 7,030 54,194 NREthe protected sector (Euro)

Employment rate (%) 2.6 2.5 NRE

(1) [(Total employees in the PI) – (Employees with fixed number of working days)] ÷ (Total employee in the PI) x 100.(2) (Total days absent in working days in the PI) ÷ (Average monthly employees).(3) (Average annual net compensation for women) ÷ (Average annual net compensation for men) x 100.

145

> Labor relations and status of collective bargaining agreements

In 2004, there were 214 meetings involving employee representative organizations. The agreements signed in 2004 involved employ-ment, equal opportunities for men and women, disabled workers, job mobility, training and redistribution.


Number of representatives of full-time employees 27 27 Public- and private-sector employees GRI/NREon the Joint Employer/Employee CentralCommittee and Health and Safety Committee

Number of full-time union representatives 16 14 Private-sector employees NRE

Number of agreements signed 4 5 Public– and private sector GRI/NREemployees (profit-sharing, salary negotiations)

> Health and safety conditions


Safety expenditure (Euro) 6,764,429 5,897,063 Expenditure related to preventative NREand safety measures

Number of workplace accidents 70 52 Including travel accidents GRI/NREwith work stoppage with work stoppage: 27

Type of professional illnesses Carpal tunnel GRI/NREsyndrome

> Training


Training expenses relative to payroll (1) (%) 5.52 4.96 PI NRE

Proportion of employees who 18.30 29.6 PI. No training or lack of data have not received any training (%) NRE

Average number of training days per trained agent 5.2 4.8 PI GRI/NRE

(1) (Total cost of training) ÷ (Total annual payroll before taxes) x 100.

> Employee benefits


Total CSE/ASOC (1) (Euro) 7,860,428 7,835,319 For public- and private- NREsector employees of the PI

Total catering subsidy (Euro) 6,588,798 5,640,997 For public- and private- NREsector employees of the PI

Company portion of payrollsavings (EPI and PEE) (Euro) 6,646,917 6,234,192 NRE

Number of “temporary vacation contracts” 878 895 Summer contracts for children of employees

(1) Company Labor Committee for civil servants (CSE) and labor and cultural activities for private-sector employees (ASOC).



> Outsourcing


Total amount paid to outside companies (Euro) 41,947,350 45,176,355 Outsourced work projects NRE/GRIand various services for the PI

Number of temporary contracts 542 828 Outsourced work projects NRE/GRIand various services for the PI

> Patronage


Annual patronage amount (Euro) 8,000,000 8,000,000 More than 300 initiatives each year GRIin music, social solidarity and contemporary art

Breakdown of patronage initiatives 2004 2003

Number Amount Number Amount(Euro (Euro

millions) millions)Musical initiatives to raise awareness among youths and economically disadvantaged people 27 349,955 27 358,863

Dance initiatives in low-income housing neighborhoods 5 40,000 5 40,000

Public on-site sculpture and “Envers des villes” project 6 47,000 5 25,000

Neighborhood cultural initiatives 38 572,559 23 658,377

On-site projects in association with urban renewal 20 757,345 34 963,000

Local initiatives of regional branches 312 1,800,000 325 1,800,000

> North-South Solidarity

Indicator 2004 2003 Comments

Project financing by Caisse des Dépôts Tiers- 104,591 94,548 North-South Solidarity association for Monde (third-world) association (Euro) Caisse des Dépôts employees (500 members).

In 2004, 10 projects were supported

Of which, Caisse des Dépôts contribution (Euro) 21,201 16,094

Total contributions for tsunami victims (Euro) 424,366 N/A Public institution, CNP, ICDC, SNI and EgisClosure of donations on January 25, 2005

Of which, employees (Euro) 164,230 N/A Including other contributions

147

> Local and regional support for company start-ups and not-for-profit organizations (subsidized support)


Support for company start-ups and development 10.4 11.0 Company start-ups, support for regional in the Tax-Free Urban Areas (Euro millions) policies favoring company start-ups and

economic development of distressedneighborhoods

Number of companies created 10,217 8,258 34,954 companies since 1999 NREwith help from interest-free loans granted by Caisse des Dépôts

Number of jobs created 21,600 16,700 74,124 jobs created since 1999 NRE

Development of not-for-profit sector (Euro millions) 16.6 12.8 Advisory fund for not-for- NREprofit projects and nation-wide partnerships

Including number of local assistance funds 26 88 114 funds covering the entire NREfor advisory services created country for 4,500 projects followed

Information for local governments (Euro millions) 1.4 1.3 Local and regional support and support NREservice for small municipalitiesand inter-municipalities by Mairie-Conseils

Number of questions handled by Mairie-Conseils 9,276 9,248 NRE

Environmental performance

The indicators listed below apply to the sites of the Public Institution (PI) of Caisse des Dépôts. In certain cases, the Bordeaux (1,159 people)and Angers (642 people) sites may be excluded from the scope.

> Water, office supplies and energy consumption

Indicator 2004 Scope References

Water use (m3) 204,252 Sites owned in Paris, Bordeaux and Angers sites NRE/GRI

Water use per employee (m3) 58 GRI

Paper and envelope consumption 278.3 Public institution markets (excluding NRE/GRI(tonnes) Bordeaux and Angers sites for envelopes)

Printer cartridge consumption (units) 4,983 Paris and Angers sites. Bordeaux site: 4 tonnes GRI

Total electricity consumption (kWh) 71,185,171 Paris, Bordeaux and Angers sites NRE/GRI

Electricity consumption per employee (kWh) 16,900 GRI

Gas consumption (kWh) 14,837,363 Paris, Bordeaux and Angers sites NRE/GRI

Heating oil consumption (liters) 89,650 Paris, Angers and Bordeaux sites GRI(heating and generators)

Steam consumption (m3) 13,867 Networked Paris sites, Bordeaux, Angers NRE/GRI(urban heating)

Use of renewable energies The 2002-2004 supply contract with CNR NRE/GRI(Paris site) includes 20% hydro power

Improvement in energy efficiency Deliberations in 2005 on more efficient use NREof steam power (CPCU)

Energy consumption related to transportation For professional transportation, detailed inthe carbon emissions report (begun in late 2004)



> Land use, air emissions, wastewater and ground pollution

Indicator Comments References

Land use conditions Not material for sites NREGRI-EN6

Air emissions/CO2 emissions A carbon emissions report was started NREin late 2004. The data will appear in the 2005 report GRI-EN8

Wastewater, ground pollution Marginal for the business activity. Oil recovery NRE/GRI(garage) and printer cartridge recovery by specialized companies

Noise and olfactory pollution Marginal for the business activity. Measures are NREtaken at construction sites to reduce noise pollution

> Waste treatment

Indicator 2004 Scope References

Total waste output (tonnes) 1,630.1 Paris, Angers and Bordeaux sites NRE/GRISorting systems installed. Optimization study launched in 2004 for the Paris sites

Annual waste output per employee (kg) 387 GRI

Office supplies (units) 4,227 Paris sites. Contract with integration company: removal NREby Emmaüs and processing at Ateliers du Bocage

Batteries (kg) 775.4 Paris, Angers and Bordeaux sites NRERecovery by specialized service providers

Plastic caps collected (kg) 2,954 PI sites. “Bouchon d’Or” initiative to acquire equipment for the disabled.Recovery by specialized service provider

> Environmental protection measures

Indicator 2004/Scope References

Measures taken to limit threats to Financial services activities pose only a marginal threat in this regard. NRE/GRIbio-diversity, natural environments, The Caisse des Dépôts subsidiary Société Forestière established protected animal and plant species an ISO 9001 sustainable forest management procedure that includes

the identification and protection of environmentally sensitive areas

Company environmental evaluation The Bordeaux site has been ISO 14001 – certified NREand certification initiatives since July 2003. Launch of the carbon emissions

report by the PI in late 2004

Measures taken to ensure compliance The departments in charge of property management and NREof activities with applicable legislative and safety of the PI are responsible for the implementation withinregulatory measures their scope of legal and regulatory measures

Expenditure to prevent the company’s Expenditure not broken down separately NREactivities from having a detrimental in the operating budgets of the entitiesimpact on the environment

Existence within the company Sustainable Development Department created in April 2004 NREof management units dedicated to to steer the sustainable development approach. environmental protection, training Environmental protection measures are the responsibility and employee awareness of the technical departments of each site

149

> Environmental risks

Indicator 2004/Scope References

Resources and units dedicated A Physical and Environmental Risk Management NRE/GRIto reducing environmental risks network was created in late 2004 to identify

priorities and harmonize risk management within the PI

> Subsidiaries

This labor and environmental report applies to the Public Institution of Caisse des Dépôts. Its main subsidiaries are as follows:

Name Activity Web site

CNP Assurances Life insurance www.cnp.fr

Société Forestière Forest assessments, investments, management and planning www.forestiere-cdc.fr

Egis Group Engineering, project structuring and infrastructure operations www.groupegis.com

Icade Global real estate company, for individuals, companies and public-sector organizations www.icade.fr

VVF Vacances Leisure accommodation and tour operator www.vvf-vacances.fr

Transdev Operations of mass transit networks www.transdev.fr

Société nationale immobilière Rental and property management of middle-income housing www.groupesni.fr

Compagnie des Alpes Family leisure resort operations (ski resorts and amusement parks) in France www.compagniedesalpes.com

CDC Entreprises Private equity fund active in all market segments www.cdcentreprises.fr

EditorCaisse des Dépôts

Design and productionL’Agence Synelog

Photo creditsAndrea Pistolesi/Getty Images (cover) – Julien Roure (drawings)

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