Annual Report - Caisse des Dépôts et Consignations

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Caisse des Dépôts Group Consolidated net income before non-recurring items: € 1,357 million, an increase of 5% over 2000. In a difficult market for financial activities in 2001, Caisse des Dépots (CDC) succeeded in consolidating its profitability and strengthening its financial structure. Before non-recurring items, the group share of consolidated net income reached € 1,357 million in 2001 compared to € 1,292 million the year before, an increase of 5%. Capital funds, including the fund for general banking risks (equivalent to equity capital), increased by 5.6% to € 13 billion after deducting dividends paid in 2001. Return on equity (ROE) amounted to 11%, which was slightly less than in 2000, with Tier 1 capital making up 100% of capital funds. The 2000 accounts were restated to reflect new regulations governing insurance companies. Net income for the year ended December 31, 2000 included non-recurring income of € 659 million, due to the impact of share exchange offers on CDC’s portfolio and the long-term equity holdings of CDC- Participations, less the non-recurring expenses linked to the formation of CDC IXIS. Breakdown of net recurring income (group share) € millions Net income (including non-recurring items) 1,926 1,951 1,357 1,139 1999 +13% 1,292 2000* 6 Caisse des Dépôts Group 2001 +5% 1,357 2001 Key Figures Caisse des Reported net banking income increased 11% to € 5.3 billion. This increase reflected three factors in particular: good financial performances from business lines; the full-year consolidation of Nvest; and the sharp drop in realized gains generated by the Private Equity business because of extremely depressed financial markets. Gross income from operations, on the other hand, declined by 8% due to a strong increase in operating expenses linked to the acquisition of Nvest, the development of the financial guaranty activity and new mandates entrusted to the Public Institution. The conservative policy of setting aside provisions against the securities portfolios in 1999 and 2000, when the markets were rising rapidly, provided a cushion as markets fell in 2001. Further, the total amount appropriated to provisions was limited to € 461 million in 2001, compared with € 810 million in 2000. As a result, net recurring income before income tax increased by 2% to € 2.1 billion. Income taxes declined to € 585 million from € 640 million in 2000 in the absence of realized capital gains. Goodwill on CDC Group’s recent acquisitions (Nvest, Caixa Seguros and Egis Australia) resulted in an amortization charge of € 77 million. In line with past practices, a transfer was made to the fund for general banking risks that amounted to € 46 million in 2001. (*) The 2000 accounts were restated to reflect new regulations governing insurance companies.
Dépôts Group in 2001 € millions +11% 5,334 2001 2000 Financial highlights (excluding non-recurring items) 4,805 -8% +2% 2,104 2,102 2,137 1,934 Banking income Gross income from operations Net recurring income before tax +5% 1,292 1,357 Net income, group share A breakdown of net income by business segment shows that subsidiaries increased their net contribution by 6% from € 682 million in 2000 to € 723 million in 2001 before non-recurring items. At constant consolidation scope (i.e. neutralizing the disposal of shares representing 3% of CNP Assurances’ capital), their contribution would in fact Breakdown of net recurring income (group share)* € millions 2000 (at constant consolidation scope) 2001 52% 48% 53% 682 610 723 634 47% CDC CDC Subsidiaries Subsidiaries * Neutralizing the disposal of shares representing 3% of CNP Assurances’ capital (€ 16 million). have increased by 8.5%. Subsidiaries contributed 53% of the CDC Group’s consolidated net income in 2001, compared with 52% in 2000. Investment Banking and Financing: CDC IXIS 28% of net income (group share) CDC IXIS contributed net income of € 378 million, down 2.6% from 2000, before non-recurring items. While CDC IXIS reported a lower overall ROE of 6.8% because of the lower income generated by proprietary trading activities, its operational business divisions – Capital Markets & Financing, Asset Management, and Banking & Securities Services – held up remarkably well. Net income contributed by these three activities increased by 6.6% to € 230 million, equivalent to an ROE of 11.6% compared with 12.3% in 2000. Life Insurance: CNP Assurances 16% of net income (group share) CNP Assurances made a broadly unchanged contribution of € 212 million, despite that Caisse des Dépôts sold 3% of the capital of CNP Assurances at the start of 2001. At constant consolidation scope, its contribution would have been up by 8%. Group share of net income reported by CNP Assurances increased by 12.2% to € 528 million in 2001. Based on the new accounting standards applicable to insurance companies, ROE amounted to 13.2%. Embedded value was stable at € 43.5 per share, compared with € 43.4 per share at the end of 2000. Caisse des Dépôts Group 2001 7
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Annual Report - Caisse des Dépôts et Consignations

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