CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010

Transcription

1 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 Approved by the CA Consumer Finance Board of Directors at its meeting of 18 February 2011 and submitted to the Shareholders for approval at the General Meeting of Shareholders of 5 may

2 CONTENTS GENERAL FRAMEWORK... 3 LEGAL PRESENTATION OF THE CA CONSUMER FINANCE GROUP... 4 CONSOLIDATED FINANCIAL STATEMENTS INCOME STATEMENT STATEMENT OF COMPREHENSIVE INCOME BALANCE SHEET - ASSETS BALANCE SHEET - LIABILITIES AND EQUITY STATEMENT OF CHANGES IN EQUITY STATEMENT OF CASH FLOWS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3 The consolidated financial statements comprise the introduction, the full set of consolidated financial statements and the accompanying notes GENERAL FRAMEWORK Legal presentation CA Consumer Finance is a French société anonyme with a Board of Directors, governed by French company law and, in particular, by Book II of the French Commercial Code. CA Consumer Finance is a credit institution authorised by the Prudential Control Authority to carry out banking operations, and is subject to the provisions of the French Monetary and Financial Code. It is also subject to oversight by the banking supervisory authorities and more particularly by the Prudential Control Authority. Registered office: boulevard Raspail, Paris Registration number: Paris Trade and Companies Registry French société anonyme with a share capital of 346,546,434. CA Consumer Finance is a wholly-owned subsidiary of the Crédit Agricole S.A. Group and forms part of the Specialised Financial Services Division. Significant events of the year On 1 April 2010, Sofinco's shareholders approved the merger of Finaref and CA Consumer Finance into Sofinco with retroactive effect from 1 January Concurrently with the merger, Sofinco changed its name to CA Consumer Finance. These merger operations are internal restructurings within the Crédit Agricole Group and therefore do not fall within the scope of IFRS 3 Business Combinations as adopted under Commission Regulation (EC) no. 495/2009 of 3 June In accordance with the standards applied by the Crédit Agricole Group, the mergers were accounted for using the pooling of interests method. The assets and liabilities were therefore transferred retrospectively at their carrying amounts in the financial statements of Crédit Agricole S.A. at 1 January The net asset value transferred including the goodwill existing in Crédit Agricole S.A.'s financial statements was recognised in consolidated reserves. This method presents the financial statements of CA Consumer Finance as if the new entity comprising the former Sofinco and the transferred entities (now called CA Consumer Finance) had always existed. The operation led to the recognition of 1,657 million of goodwill, including 1,017 million for Finaref S.A., 407 million for Sofinco S.A., 183 million for Finaref AB and 41 million for Nordic. The impact on consolidated equity (including goodwill) was 2,250 million. CA Consumer Finance is hereinafter referred to as CACF. 3

4 Legal presentation of the CA Consumer Finance Group CREDIT AGRICOLE S.A. GAC - SOFINCO AUTO FINANCE % 1 (China) MENAFINANCE SA EMPORIKI RENT 747, , , % 99.63% 744,293 (Greece) CREALFI SAS EMPORIKI CONSUMER FINANCE EMPORIKI INSURANCE BROOKERS 1,042,770 16,233,333 20, % 20,000 (Greece) 531, % 16,233,333 (Greece) % CREDIT LIFT SAS FORSO FINANCE OY 30, , , % % 30,000 (Finland) ALSOLIA SA FORSO DENMARK 1 382,000 76, % % 1 (Denmark) CARTES CADEAUX DS (SA) FORSO NORDIC AB FORSO NORGE 251, % 8,405, , % 4,202,788 (Sweden) % 1 (Norway) CREDIUM CREDIUM SLOVAKIA #DIV/0! 785, % 785,000 (Czech Republic) % 900 Slovakia EDA SAS 25,000 BANCO CREDIBOM SA DNV B.V % 5,600 19, % 24,800, CA Consumer Finance % 24,800,000 (Portugal) % 180 (Netherlands) SOF PARTICIPATIONS SAS 8,885, ,000 WAFASALAF SA INTERBANK / DMC (2) 100, % 1,131,795 23,483 (Netherlands) 49.00% 554,580 (Morocco) % 23,483 SEDEF SNC CACF NEDERLAND NV RIBANK 204,000 7,234,291 2, % 1 203, % % 7,234,291 (Netherlands) % 2,500 (Netherlands) VALRIS SAS UCALEASE SA AGOS DUCATO SpA ARES REINSURANCE LTD 35, , , ,000 35, % 122, % 61.00% 121,594 (Italy) % 635,000 (Irland) CLIMAUTO SA LOGOS FINANZIARIA SpA CREDITPLUS BANK AG 99.86% 4, ,000 4, % 36,000, % 183,000 (Italy) 36,000,000 (Germany) CREDIT LIFT SpA 1, % 1,200 (Italy) FINAREF AB FINAREF OY % 250,000 10, ,000 (Sweden) % 10,000 (Finland) FINAREF A/S 150, % 150,000 (Norway) NORDIC CONSUMER FINANCE DAN AKTIV A/S 10,100, ,000,000 BC FINANCE ARGENCE PARTICIPATION SA % 200,000,000 (Denmark) % 10,100,000 (Denmark) , , % % ARGENCE INVESTISSEMENT 2,544,000 2,544, % FGA CAPITAL SPA (1) FINALIA SA 700,000,000 10, ,000, % (Italy) 4, % 49.99% FINAREF ASSURANCES FIDIS BANK GmbH 75,596 5,000,000 (Austria) 2,500, , % 25.00% 1,250, % GIE ARGENCE DEVELOPPEMENT % % (1) The full scope of consolidation of the FGA Capital Group is shown in the section entitled " Scope of consolidation at 31 December 2010". GIE ARGENCE MANAGEMENT (2) The full scope of consolidation of the Interbank/DMC Group is shown in the section entitled " Scope of consolidation at 31 December 2010". 100 En cours de liquidation 82.00% 20.00%

5 Related parties Only transactions and balances considered material in relation to the CACF Group's financial statements are presented. The following materiality thresholds were set for 2010: - Income statement: transactions and balances above 1,000,000; - Balance sheet: transactions and balances above 5,000,000; - Off-balance sheet commitments: transactions and balances above 10,000,000. Transactions with other CACF Group companies Intragroup transactions are eliminated upon consolidation. Accordingly, the following information only includes transactions and balances with subsidiaries that are not fully consolidated. Transactions mainly concern the refinancing of Group entities by CA Consumer Finance. Data at 31/12/2010 : CA Consumer Finance Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income FGA Capital Group (50%) -Non-subordinated notes 575,583 -Term loan 2,439,669 -Performing customer loans and advances 1,576,062 -Ordinary accounts in debit 50,572 -Ordinary accounts in credit 53,377 -Interest (ord. accounts, loans/borrowings) 76,155 -Share of joint ventures 1,111 Ménafinance (50%) -Term and subordinated loan 129,493 -Ordinary accounts in debit 52,890 -Ordinary accounts in credit 60,917 -Financing commitment given 34,000 -Interest (ord. accounts, loans/borrowings) 2,353 -Share of joint ventures 5,446 Forso Sweden (50%) -Term and subordinated loan 89,350 -Guarantee commitments given 22,308 -Interest (ord. accounts, loans/borrowings) 1,170 Forso Norway (50%) -Term loan 229,397 - Guarantee commitments given 19,231 -Interest (ord. accounts, loans/borrowings) 5,908 Forso Denmark (50%) -Term loan 146,028 -Interest (ord. accounts, loans/borrowings) 2,887 Forso Finland (50%) -Term loan 123,604 -Interest (ord. accounts, loans/borrowings) 3,423 5

6 Data at 31/12/2009 : CA Consumer Finance Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income FGA Capital Group (50%) -Term loan 2,818,686 -Performing customer loans and advances 1,377,582 -Ordinary accounts in debit 41,128 -Ordinary accounts in credit 39,801 -Interest (ord. accounts, loans/borrowings) 84,609 Ménafinance (50%) -Term and subordinated loan 120,742 -Ordinary accounts in debit 57,173 -Ordinary accounts in credit 53,425 -Financing commitment given 26,500 -Interest (ord. accounts, loans/borrowings) 4,416 -Share of joint ventures 4,888 Forso Sweden (50%) -Term and subordinated loan 60,730 -Interest (ord. accounts, loans/borrowings) 1,859 Forso Norway (50%) -Term loan 185,229 -Interest (ord. accounts, loans/borrowings) 7,678 Forso Denmark (50%) -Term loan 115,628 - Guarantee commitments given 10,078 -Interest (ord. accounts, loans/borrowings) 5,857 Forso Finland (50%) -Term loan 115,979 -Interest (ord. accounts, loans/borrowings) 5,613 Sofinco Saudi Fransi (50%) -Term loan 12,853 Alsolia -Term loan 40,395 -Interest (ord. accounts, loans/borrowings) 1,112 Carrefour Servizi Finanziari -Term loan 80,414 -Interest (ord. accounts, loans/borrowings) 1,745 Balances include accrued interest receivable and payable Transactions with other Crédit Agricole S.A. Group entities Most of the transactions carried out with Credit Agricole S.A. Group entities, including Crédit Agricole S.A. and the CACIB Group, are refinancing transactions (where applicable in the form of subordinated debt) and hedging transactions (derivative instruments). Other transactions are mainly related to: - collections (Crédit Agricole S.A. being the lead bank of the CACF Group's French entities) and last-resort guarantee fees; - rebilling or other services under the partnership with LCL (management of consumer finance accounts repayment loans and revolving credit); - transactions with Group insurance companies related to the distribution of their products. 6

7 CA Consumer Finance transactions - data at 31/12/2010 : CA Consumer Finance Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income Crédit Agricole S.A. -Ordinary account in credit 205,116 -Term borrowing 34,184,985 -Subordinated debt 2,298,373 -Collection accounts 272,416 30,639 -Current tax liability 6,306 -Guarantee commitments received 2,001,206 - Guarantee commitments given 652,675 -Hedging instruments (interest-rate) 50,000 -Interest (ord. account, loans/borrowings) 532,801 -Expense/income on hedging instruments 1,112 2,688 -Expense on subordinated debt 55,245 -Guarantee fees 14,327 -Other taxes and duties 1,973 GIE Silca -IT and telecoms 8,866 -Other external services 1,106 -Accrued expenses 2,621 Ucalease -Other external services 1,642 Emporiki Bank -Sundry payables 7,184 BFT Gestion -Negotiable debt securities 345,000 -Expense on negotiable debt securities and other fixed-income securities 7,512 CA CIB -Ordinary account in debit 19,037 -Term loan 1,748,880 -Term borrowing 1,812,124 -Security deposit on market operations 391,630 -Negotiable debt securities 953,954 -Hedging instruments (interest-rate) 35, ,151 13,278,753 -Hedging instruments (exchange rate) -Expense on negotiable debt securities and other fixed-income securities 9,285 -Interest (ord. account, loans/borrowings) 25,242 15,437 -Expense/income on hedging instruments 107,360 52,421 LCL -Ordinary accounts in debit 21,027 -Ordinary accounts in credit 37,006 -Share of joint ventures 22,345 -Incidental income 11,897 -Rebilling of external services 2,527 -Payment system fees 5,008 CACI Life Ltd -Life and non-life insurance commissions 41,928 CACI Insurance Ltd -Life and non-life insurance commissions 59,074 CACI Gestion -Share of joint ventures 2,716 7

8 Cedicam CA Consumer Finance Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income -Payment system expenses 11,499 -Payment system fees 2,825 -Other external services 2,214 Predica -Customer ordinary accounts in credit 58,827 CA Consumer Finance data at 31/12/2009 : CA Consumer Finance Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income Crédit Agricole S.A. -Ordinary account in debit 255,797 -Term borrowing 29,049,169 -Subordinated debt 2,299,553 -Collection accounts 357,958 25,013 -Guarantee commitments received 920,952 -Guarantee commitments given 625,078 -Hedging instruments (interest-rate) 50,000 -Interest (ord. account, loans/borrowings) 584,474 1,417 -Expense/income on hedging instruments 1,173 5,488 -Expense on subordinated debt 71,562 -Expense on negotiable debt securities and other fixed-income securities 45,144 -Guarantee fees 11,376 -Financing commitment fees CA CIB -Accruals and other liabilities 16,749 -Term loan 1,540,253 -Term borrowing 1,537,223 -Security deposit on market operations 314,330 -Hedging instruments (interest-rate) 15,853 21,200,108 -Hedging instruments (exchange rate) 133,751 -Interest (ord. account, loans/borrowings) 43,277 29,556 -Expense/income on hedging instruments 275,982 85,175 BGPI -Term loan 30,002 LCL -Ordinary accounts in debit 14,363 -Ordinary accounts in credit 15,771 -Share of joint ventures 22,590 -Incidental income 11,369 -Rebilling of external services 2,689 -Payment system fees 4,611 CACI Life Ltd -Life and non-life insurance commissions 44,215 CACI Insurance Ltd -Life and non-life insurance commissions 63,379 Cedicam -Payment system fees 2,283 -Other external services 1,513 8

9 Predica CA Consumer Finance Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income -Customer ordinary accounts in credit 45,603 Sedef transactions - data at 31/12/2010 : Sedef Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income Crédit Agricole S.A. -Term borrowing 270,420 -Interest (ord. account, loans/borrowings) 5,537 -Securities given as collateral 490,937 Data at 31/12/2009 : Sedef Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income Crédit Agricole S.A. -Term borrowing 340,011 -Interest (ord. account, loans/borrowings) 7,907 -Securities given as collateral 530,819 Agos Group transactions - data at 31/12/2010 : CA CIB Agos Group Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income -Ordinary account in debit 402,886 -Hedging instruments (interest-rate) 16, ,223 14,988,755 -Trading instruments 6,026 6,827 -Interest (ord. accounts, loans/borrowings) 1,086 -Expense/income on hedging instruments 191, ,317 -Change in FV of trading derivatives 6,125 5,927 Friuladria -Hedging instruments (interest-rate) 15,000 -Expense/income on hedging instruments 1,270 Cariparma -Term borrowing 171,189 -Hedging instruments (interest-rate) 5, ,051 -Interest (ord. accounts, loans/borrowings) -Expense/income on hedging instruments 8,303 1,816 -Interest (ord. accounts, loans/borrowings) 2,267 -Miscellaneous income (banking operations) CACI Life Ltd -Other insurance assets 43,510 -Life and non-life insurance commissions 34,300 -Insurance premiums 15,526 CACI Non Life Ltd -Life and non-life insurance commissions 22,651 2,412 9

10 Data at 31/12/2009 : CA CIB Agos Group Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income -Ordinary account in debit 420,696 -Overnight borrowings 42,418 -Hedging instruments (interest-rate) 7,944,295 -Interest (ord. accounts, loans/borrowings) 1,261 -Expense/income on hedging instruments 140,256 62,669 Friuladria -Hedging instruments (interest-rate) 40,000 -Expense/income on hedging instruments 1,661 Cariparma -Term borrowing 120,241 -Hedging instruments (interest-rate) 374,918 -Interest (ord. accounts, loans/borrowings) 2,813 -Expense/income on hedging instruments 7,385 2,015 -Miscellaneous income (banking operations) 2,222 CACI Life Ltd -Life and non-life insurance commissions 37,323 CACI Non Life Ltd - Life and non-life insurance commissions 22,486 Creditplus transactions - data at 31/12/2010 : CA CIB Creditplus Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income -Hedging instruments (interest-rate) 17, ,000 -Expense/income on hedging instruments 17,907 4,727 CACI Life Ltd -Life and non-life insurance commissions 10,662 CACI Non Life Ltd -Life and non-life insurance commissions 11,434 Data at 31/12/2009 : CA CIB Creditplus Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income -Hedging instruments (interest-rate) 593,000 -Expense/income on hedging instruments 20,945 9,307 CACI Life Ltd -Life and non-life insurance commissions 9,765 CACI Non Life Ltd - Life and non-life insurance commissions 9,197 10

11 EDA transactions - data at 31/12/2010 : Crédit Agricole S.A. EDA Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income -Current tax prepayments and liabilities 11,227 10,712 -Current tax expense 10,712 Pacifica -Life and non-life insurance commissions 3,505 CACI Life Ltd - Sundry payables 12,017 -Accrued income 6,073 -Life and non-life insurance commissions 28,490 CACI Non Life Ltd - Sundry payables 10,656 -Accrued income 5,385 -Life and non-life insurance commissions 25,265 Data at 31/12/2009 : Predica EDA Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income - Sundry payables 8,776 -Accrued income 9,144 -Life and non-life insurance commissions 26,006 Pacifica -Life and non-life insurance commissions 3,544 CACI Life Ltd - Sundry payables 7,005 -Life and non-life insurance commissions 10,976 CACI Non Life Ltd - Sundry payables 6,212 -Life and non-life insurance commissions 9,734 FGA Capital transactions - data at 31/12/2010 : CACIB FGA Capital Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income -Hedging instruments (interest-rate) 20,624 1,547,055 -Hedging instruments (exchange rate) 16,166 -Trading instruments 9,231 9,192 -Expense/income on hedging instruments 29,995 CACI Life -Sundry receivables 6,300 -Miscellaneous income (banking operations) CACI Non Life -Miscellaneous income (banking operations) 11,691 3,243 11

12 Data at 31/12/2009 : CA CIB FGA Capital Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income -Hedging instruments (interest-rate) 3,073,888 -Expense/income on hedging instruments 23,192 CACI -Life and non-life insurance commissions 8,114 Credicom Consumer Finance Group transactions - data at 31/12/2010 (in thousands of euros): Credicom Consumer Finance Group Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income Emporiki Bank -Ordinary account in debit 27,497 -Term account and borrowing 359,854 -Interest (ord. accounts, loans/borrowings) 14,633 -Income from non-banking operations 1,078 Ménafinance transactions - data at 31/12/2010 : Menafinance Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income CACI Life -Life and non-life insurance commissions 1,700 Valris transactions - data at 31/12/2010 : Valris Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income Crédit Agricole S.A. -Loss on disposal of equity interests 1,337 Finaref Assurance transactions - data at 31/12/2010 : Finaref Assurance Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income LCL -Ordinary accounts 6,990 Finaref RD -Accrued income 6,893 -Life and non-life insurance commissions 21,235 Finaref Vie -Life and non-life insurance commissions 1,059 12

13 Data at 31/12/2009 : Finaref Assurance Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income Finaref RD -Accruals, prepayments and other sundry 7,341 assets -Life and non-life insurance commissions 21,780 Finaref Vie -Life and non-life insurance commissions 1,032 NCF Group transactions - data at 31/12/2010 : NCF Group Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income Crédit Agricole S.A. -Term borrowing 11,031 -Interest (ord. account, loans/borrowings) 1,393 Data at 31/12/2009 : NCF Group Balance sheet and commitments Income statement Third parties Assets Liabilities Commitments Expense Income Crédit Agricole S.A. -Term borrowing 8,526 13

14 Transactions with other Crédit Agricole Group entities CA Consumer Finance manages some consumer finance business on behalf of Crédit Agricole Regional Banks, either on a fee basis or through joint ventures. The following table shows balances and transactions in excess of 1,000,000 for income statement items, 5,000,000 for balance sheet items and 10,000,000 for off-balance sheet commitments for all Crédit Agricole Regional Banks at 31 December 2010 and Data at 31/12/2010 : CA Consumer Finance Balance sheet and commitments Income statement Crédit Agricole Regional Banks Assets Liabilities Commitments Expense Income -Ordinary account in debit 23,184 -Ordinary account in credit 196,600 -Postage 4,314 -Share of joint ventures 27,459 -Incidental income 8,021 -Rebilling of external services 178 Balances include accrued interest receivable and payable Data at 31/12/2009 CA Consumer Finance Balance sheet and commitments Income statement Crédit Agricole Regional Banks Assets Liabilities Commitments Expense Income -Ordinary account in debit 53,342 -Ordinary account in credit 156,331 -Share of joint ventures 22,035 -Miscellaneous income (banking operations) 10,209 -Rebilling of external services 5,198 Balances include accrued interest receivable and payable Transactions with the directors and executives of CA Consumer Finance S.A. No transactions have taken place between CACF Group entities and members of CACF S.A.'s Executive Committee other than: - Payment of employee benefits and other compensation; - Consumer credit transactions entered on an arm's length basis or on terms available to all CACF S.A. employees. Furthermore, no transactions have taken place between CACF Group entities and members of CACF S.A.'s Board of Directors, excluding any arm's length consumer credit transactions. 14

15 CONSOLIDATED FINANCIAL STATEMENTS INCOME STATEMENT Notes 31/12/ /12/2009 (1) Interest receivable and similar income 4, Interest receivable and similar expense 4, Commission and fee income 4, Commission and fee expense 4, Net gains or losses on financial instruments at fair value through profit or loss 4, Net gains or losses on available-for-sale financial assets Income related to other activities 4, Expense related to other activities 4, NET BANKING INCOME Operating expenses Depreciation, amortization, etc. 4, GROSS OPERATING INCOME Cost of risk 4, OPERATING INCOME Share of profit in equity accounted entities 2, Gains or losses on disposal of other assets 4, Change in value of goodwill 2, PRE-TAX INCOME Income Tax Expense 4, NET INCOME Minority Interests NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT Basic earnings per share (in euros) * 6,17 45,76 40,08 15

16 STATEMENT OF COMPREHENSIVE INCOME Notes 31/12/ /12/2009 (1) Net income attributable to owners of the parent Gains and losses on translation adjustments Gains or losses on AFS Financial securities Gains and losses on hedging derivative instruments (21 818) Gains and losses on hedges of a net investment in a foreign operation (39 406) Actuarial gains and losses on post-employment benefit plans (4 427) Other comprehensive income attributable to owners of the parent, excluding equity-accounted entities (12 767) (8 966) Share of other comprehensive income from equity-accounted entities (839) T otal other comprehensive income attributable to owners of the parent 4,11 (7 102) (9 805) Net income and other comprehensive income attributable to owners of the parent Net income and other comprehensive income attributable to minority interests T otal net income and other comprehensive income (1) The impacts of the change of accounting method applied as of 1 January 2010 are described in note 1.5. Amounts are disclosed after tax. 16

17 BALANCE SHEET - ASSETS Notes 31/12/ /12/2009 Cash due from central banks 6, Financial assets at fair value through profit or loss 6, Derivative hedging instruments Available-for-sale financial assets Loans and receivables to credit institutions Loans and receivables to customers Revaluation adjustment on interest rate hedging portfolios Current and deferred tax assets 6, Accruals, prepayments and other sundry assets 6, Investments in equity-accounted entities 2, Investment property 6, Property, plant and equipment 6, Intangible assets 6, Goodwill 2, TOTAL ASSETS

18 BALANCE SHEET - LIABILITIES AND EQUITY Notes 31/12/ /12/2009 (1) Due to central banks 6, Financial liabilities at fair value through profit or loss 6, Derivative hedging instruments Due to credit institutions Due to customers Debt securities in issue Revaluation adjustment on interest rate hedging portfolios Current and deferred tax liabilities 6, Accruals, prepayments and other sundry liabilities 6, Insurance company technical reserve 6, Provisions 6, Subordinated debt TOTAL DEBTS Equity Equity attributable to owners of the parent Share capital and reserves Consolidated reserves Other comprehensive income Net income for the year Minority Interests TOTAL LIABILITIES AND EQUITY (1) The impacts of the change of accounting method applied as of 1 January 2010 are described in note

19 STATEMENT OF CHANGES IN EQUITY Share capital Share capital and reserves Share premiums and other capital reserves (1) Elimination of treasury shares Share capital and consolidated reserves attributable to owners of the parent Other comprehensive income (4) Net income attributable to owners of the parent Total equity attributable to owners of the parent Equity attributable to minority interests Total consolidated equity Equity at 1 January Capital increase Dividends paid in Impact of acquisitions/disposals on minority interests (2) Movements related to stock options Changes due to transactions with shareholders Change in other comprehensive income (4) Share of changes in equity-accounted entities (3) net income Other changes Equity at 31 December Appropriation of 2009 net income Equity at 1 January Capital increase Change in treasury shares Dividends paid in 2010 * Impact of merger Impact of acquisitions/disposals on minority interests (2) Movements related to stock options Changes due to transactions with shareholders Change in other comprehensive income Share of changes in equity-accounted entities (3) net income Other changes Equity at 31 December (1)Before elimination of treasury shares (2) Including impact of movements in minority interests (3) Including the share of other comprehensive Equity-accounted entities (4) The impacts of the change of accounting method applied as of 1 January 2010 are described in note 1.5. * Including 115 million paid in shares 19

20 Consolidated reserves mainly comprise undistributed retained earnings from prior years, amounts arising from the first-time adoption of IFRS, and consolidation adjustments. Gains or losses on cash flow hedges transferred from other comprehensive income to profit or loss are recognised in net banking income. Other than dividend payments and net income for the year, the main changes in equity were as follows: o extinction of CACF treasury shares owned by Valris ( 17.4 million); o change in other comprehensive income arising mainly from the fair value remeasurement of hedges of net investments in foreign operations ( million) and changes in translation differences ( 21.2 million) 20

21 STATEMENT OF CASH FLOWS The statement of cash flows is presented using the indirect method. Operating activities represent income-generating activities of the CACF Group including income from assets classified as held-to-maturity investments. Tax inflows and outflows are included in full within operating activities. Investing activities represent cash flows arising from the acquisition and disposal of interests in consolidated and non-consolidated companies and from purchases and sales of property, plant and equipment and intangible assets. This section includes strategic investments classified as available-for-sale financial securities. Cash flows from investing activities mainly comprise: Disposal of Fia-Net shares ( 25.6 million); Subscription to shares issued by GAC Sofinco Finance Company Ltd ( million); Adjustment to the acquisition price of FGA Capital SpA shares (- 8.1 million); Disposal of Carrefour Servizi Finanziari shares ( 7.5 million). Purchases and sales of property, plant and equipment and intangible assets generated a net cash outflow of 36.8 million. Financing activities represent cash flows arising from changes in financial structure involving equity and long-term borrowing. Cash flows from transactions with shareholders mainly comprise: Dividends paid to shareholders ( million) Sale of CACF treasury shares to Crédit Agricole SA ( 17.4 million). Other cash flows from the CACF Group's financing activities mainly comprise bond redemptions ( million) and interest paid on subordinated debt and bond issues ( million). Net cash and cash equivalents include cash, debit and credit balances with central banks and debit and credit demand balances with banks. All cash balances of companies held at 31 December 2010 are available to the CACF Group. 21

22 (1) Pre-tax income Net depreciation, amortisation and impairment charges of property, plant and equipment and intangible assets Impairment of goodwill and other fixed assets Net charges to depreciation, amortization, and impairment Share of profit in equity-accounted entities Income from investing activities Income from financing activities *** Other movements Total non-cash items included in income before tax and other adjustments Cash flows arising from transactions with credit institutions*** Cash flows arising from transactions with customers Cash flows arising from other transactions affecting financial assets or liabilities*** Cash flows arising from transactions affecting non-financial assets or liabilities Dividends received from equity-accounted entities (1) 0 0 Tax paid Net decrease/(increase) in assets and liabilities arising from operating activities TOTAL NET CASH GENERATED BY OPERATING ACTIVITIES (A) Cash flows related to equity investments Cash flows related to property, plant and equipment and intangible assets TOTAL NET CASH USED IN INVESTING ACTIVITIES (B) Cash flows arising from transactions with shareholders Other net cash flows arising from financing activities TOTAL NET CASH USED IN FINANCING ACTIVITIES (C ) Impact of changes in exchange rates on cash and cash equivalents (D) Net increase/(decrease) in cash and cash equivalents (A + B+ C + D) Cash and cash equivalent at beginning of the period Net balance of cash and central bank accounts * Net balance of interbank demand items ** Cash and cash equivalent at end of the period Net balance of cash and central bank accounts * Net balance of interbank demand items ** CHANGE IN NET CASH AND CASH EQUIVALENTS * Comprising the net balance of cash and central bank items excluding accrued interest, as detailed in note 6.1 (including the cash of entities classified as assets held for sale). ** Comprising the balance of performing ordinary accounts in debit and performing overnight loans as detailed in note 6.5 and ordinary accounts in credit and overnight borrowings as detailed in note 6.7. (excluding accrued interest and including Crédit Agricole internal transactions). *** For reasons of comparability between 2009 and 2010 data, accrued interest of 226,063 thousand recognised as non-cash items in 2009 has been reclassified in net decrease/(increase) in assets and liabilities arising from operating activities. (1) The impacts of the change of accounting method applied as of 1 January 2010 are described in note

23 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. Accounting principles and methods, assessments and estimates 1.1. Applicable standards and comparability Pursuant to EC regulation no. 1606/2002, the consolidated financial statements have been prepared in accordance with the international financial reporting standards (IAS/IFRS) and interpretations (IFRIC) applicable at 31 December 2010, as adopted by the European Union. The CACF Group accordingly applies the carve-out version of IAS 39, which permits certain exemptions from the rules on macro-hedge accounting. These standards and interpretations are available on the European Commission's website at the following address: The standards and interpretations are the same as those used and described in the Group's financial statements for the year ended 31 December 2009 with the exception of the method of accounting for actuarial gains and losses on post-employment defined benefit plans. According to IAS 19, actuarial gains and losses on defined benefit plans may be accounted for as follows: - Entirely through profit or loss; - Partly through profit or loss in an amount determined using the corridor method; - Entirely through other comprehensive income. Until 31 December 2009, the CACF Group recognised actuarial gains and losses through profit or loss in the period in which they arose. In order to provide information more comparable with the principles applied by other companies, the Group has now decided to recognise actuarial gains and losses entirely through other comprehensive income. This method has been applied on a permanent and consistent basis to all defined benefit plans since 1 January This change of accounting method has been treated in accordance with the provisions of IAS 8 and applied retrospectively. The main impacts of the change are disclosed in note 1.5. The standards and interpretations used to prepare the financial statements at 31 December 2009 have been supplemented by the new or amended standards and interpretations as adopted by the European Union at 31 December 2010, which are mandatory for the first time in These are: Standards, Amendments or Interpretations Annual amendment to improve IFRS 5, relating to subsidiaries facing a sale plan entailing a loss of control and related amendments to IFRS 1 IAS 27 Revised Consolidated and Separate Financial Statements Date of publication by the European Union 23 January 2009 (EC no. 70/2009) 3 June 2009 (EC no. 494/2009) IFRS 3 Revised - Business Combinations 3 June 2009 (EC no. 495/2009) Amendment to IAS 39 on eligible hedged items, which 15 September provides clarifications on the use of hedge accounting 2009 Date of firsttime application: financial years commencing on or after 1 January January January January

24 for the inflation component of a financial instrument (EC no. 839/2009) IFRS 1 Revised First-time Adoption of International 25 November Reporting Standards 2009 (EC no. 1136/2009) and 23 June 2010 Annual improvements to IFRSs amending and clarifying nine standards and two interpretations, adopted in regulation EU no. 243/2010 of 23 March 2010 Amendment to IFRS 2 Share-based Payment, incorporating and superseding guidance previously included in IFRIC 8 and IFRIC 11 IFRIC 12 Service Concession Arrangements, which does not concern the Group's businesses IFRIC 16 Hedges of a Net Investment in a Foreign Operation IFRIC 15 Agreements for the Construction of Real Estate dealt with in IAS 11 - Construction Contracts and IAS 18 Revenue IFRIC 17 Distributions of Non-cash Assets to Owners IFRIC 18 - Transfers of Assets from Customers, which does not concern the Group's businesses 1 January 2010 (EU no. 550/2010) 23 March January March 2009 (EU no. 244/2010) 25 March 2009 (EU no. 254/2009) 4 June 2009 (EU no. 460/2009) 22 July 2009 (EC no. 636/2009) 26 November 2009 (EC no. 1142/2009) 27 November 2009 (EC no. 1164/2009) 1 January January January January January January 2010 The application of these new standards, amendments and interpretations had no material impact on net income or equity for the period. IAS 27 and IFRS 3 Revised were applied prospectively to business combinations completed on or after 1 January 2010, leading to a change of accounting method for the Group. The main changes are: - On initial recognition, minority interests may be measured in one of two ways at the acquirer's option: at their acquisition-date fair value; at their proportionate share of the fair value of the acquiree's identifiable assets and liabilities. This option is available on a transaction-by-transaction basis. The Group has early adopted IFRS 3 Revised amended for Annual Improvements to IFRS 2010, which states that this option does not apply to all equity instruments held by the owners but only to those that are present ownership interests and entitle their holders to a proportionate share of the net assets in the event of liquidation. - Acquisition-related costs may no longer be included in goodwill but must be expensed in full in the period in which they are incurred. If the transaction is highly probable, these costs are 24

25 recognised under "net gains or losses on other assets", otherwise they are recognised as "general operating expenses". - Some transactions must now be accounted for separately from the business combination. - Method of accounting for business combinations achieved in stages or partial disposals involving loss of control. - Contingent consideration that is a financial instrument falls within the scope of IAS 39. During 2010, the CACF Group did not complete any transaction likely to be affected by this change of accounting method. Furthermore, the Group has not early adopted any standards or interpretations that are not yet mandatory, unless specifically stated otherwise. This mainly concerns: Standards, Amendments or Interpretations Date of publication by the European Union Amendment to IAS 32 - Classification of Rights Issues 23 December 2009 (EU no. 1293/2009) Amendment to IFRS 1 and IFRS 7 on the exemptions from disclosing comparative information on financial instruments for first-time adopters Amendment to IAS 24 Related Party Disclosures regarding state-controlled entities Amendment to IFRIC 14 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction IFRIC 19 - The extinction of Financial Liabilities with Equity Instruments. This amendment will be applied for the first time on 1 January June 2010 (EU no. 574/2010) 19 July 2010 (EU no. 632/2010) 19 July 2010 (EU no. 633/2010) 23 July 2010 (EU no. 662/2010) Date of firsttime mandatory application: financial years commencing on or after 1 January January January January January 2011 The CACF Group does not expect these standards, amendments and interpretations to have a material impact on net income or equity. Lastly, standards and interpretations published by the IASB but not yet adopted by the European Union will not be mandatory until they have been adopted and have accordingly not been applied by the Group at 31 December

26 1.2 Presentation of Financial Statements In the absence of any specific requirements under IFRS, the CACF Group uses the financial statement presentation (balance sheet, income statement, comprehensive income statement, statement of changes in equity and cash flow statement) set out in CNC recommendation no R.04 of 2 July Significant accounting policies Critical accounting estimates and assessments The preparation of the financial statements requires the Group to make assumptions and estimates which involve risks and uncertainties as to whether they will be achieved in the future. Actual outcomes may be influenced by many factors, including but not limited to: activity in domestic and international markets; fluctuations in interest and exchange rates; the economic and political climate in certain industries or countries; changes in regulations or legislation. This list is not exhaustive. Accounting estimates that require the use of assumptions mainly affect: financial instruments measured at fair value; minority interests; pension plans and other future employee benefits; stock option plans; impairment of available-for-sale financial assets; impairment of unrecoverable loans and receivables; provisions; impairment of goodwill; deferred tax assets. The procedures for making assessments and estimates are described below. 26

27 Financial instruments (IAS 32 and 39) Financial assets and liabilities are accounted for in accordance with IAS 39 as adopted by the European Commission. They are initially recognised at fair value including transaction costs (except for financial instruments recognised at fair value through profit or loss) and subsequently measured either at fair value or at amortised cost using the effective interest method, depending on their classification. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability. Non-consolidated interests may be measured at cost if their fair value cannot be determined directly by reference to prices in an active market or estimated by CACF using other valuation techniques. These interests are intended to be held for the long-term and are disclosed in note 2.5. Financial assets Classification of financial assets Financial assets are classified into four categories defined in IAS 39: - Financial assets at fair value through profit or loss (held for trading or by designation); - Held-to-maturity investments; - Loans and receivables; - Available-for-sale financial assets. o Financial assets at fair value through profit or loss In accordance with IAS 39, this category comprises financial assets held for trading and those designated by the CACF Group on initial recognition as being at fair value through profit or loss. A financial asset is classified as held for trading if it is acquired principally for the purpose of selling it in the near term or it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking. A financial asset may be designated on initial recognition as at fair value through profit or loss in the following three cases, provided it meets the conditions set out in IAS 39: (i) it is a hybrid instrument containing one or more embedded derivatives, (ii) it significantly reduces an accounting mismatch or (iii) it is part of a group of financial assets that is managed and its performance evaluated on a fair value basis. This accounting treatment is generally used to avoid 27

28 recognising and measuring embedded derivatives separately from the host contract in the case of hybrid instruments. The CACF Group has not designated any financial assets as at fair value through profit or loss. Financial assets at fair value through profit or loss are initially recognised at fair value excluding any directly-related transaction costs (which are expensed as incurred) and including accrued interest. They are subsequently measured at fair value and any gains or losses arising from a change in fair value are recognised in profit or loss. Financial assets at fair value through profit or loss are not subject to review for impairment. o Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and a fixed maturity that the CACF Group has the positive intention and ability to hold to maturity, other than: - those that the CACF Group designates on initial recognition as at fair value through profit or loss; - those that meet the definition of loans and receivables. Therefore, debt securities that are not quoted in an active market cannot be classified as held-to-maturity investments. Financial assets in this category may not be sold before their maturity except in the specific cases permitted by IAS 39. Portfolio hedges of interest rate risk on held-to-maturity investments are not eligible for hedge accounting under IAS 39. Held-to-maturity investments are initially recognised at cost, including any directly-related transaction costs and accrued interest. They are subsequently measured at amortised cost using the effective interest method, including any premium or discount. Held-to-maturity investments carried at amortised cost are subject to review for impairment under the conditions described in the section entitled "Impairment of financial assets". At 31 December 2010, the CACF Group did not hold any financial assets classified as held-tomaturity. o Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are initially recognised at cost including any directly-related transaction costs and accrued interest. They are subsequently measured at amortised cost using the effective interest method, including any premium or discount and adjusted for any impairment. Loans and receivables carried at amortised cost are subject to review for impairment under the conditions described in the section entitled "Impairment of financial assets". 28

29 o Available-for-sale financial assets IAS 39 defines AFS both as assets that are designated as AFS and as the default category. They are initially recognised at fair value, including any directly-related transaction costs and accrued interest. They are subsequently measured at fair value and any gains or losses arising from a change in fair value are recognised in other comprehensive income. In case of sale, the cumulative gain or loss previously recognised in other comprehensive income is transferred to profit or loss. Any premiums or discounts on fixed-income securities are amortised through profit or loss using the effective interest method. Available-for-sale financial assets are subject to review for impairment under the conditions described in the section entitled "Impairment of financial assets". Impairment of financial assets An impairment loss is recognised when there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a 'loss event'), except for those measured at fair value through profit or loss. Objective evidence of impairment includes a prolonged or significant decline in the value of an equity instrument or a significant deterioration in the credit risk of a debt security evidenced by a risk of non-recovery. For equity instruments, the CACF Group uses quantitative criteria as indicators of potential impairment. These quantitative criteria are mainly based on a loss of at least 30% in the value of the equity instrument over a period of six consecutive months. Management may decide to take other factors into consideration such as the issuer's financial difficulties or short-term prospects. In addition to these criteria, an impairment loss is recognised if the value of an equity instrument falls by more than 50% or there is a prolonged decline in value for more than three years. The duration conditions have been revised in order to harmonise all criteria across Group entities. For debt instruments, the impairment criteria are those applied to loans and receivables. The impairment loss is recognised as follows: - for financial assets carried at amortised cost, through the use of an allowance account. The amount of the loss is recognised in profit or loss and may be reversed in the event of a subsequent improvement; - for available-for-sale financial assets, by transferring the cumulative loss from other comprehensive income to profit or loss. In the event of a subsequent improvement in the fair value of a debt instrument classified as available for sale, the impairment loss may be reversed through profit or loss when justified by the circumstances. 29