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					Financial Report
       2005
Contents




Concept of        Caisse des
group             Dépôts group




             02                   04
                  P. 5                     Savings Funds
                  Highlights               centralised
                                           at Caisse des
                  P. 6
                  Consolidated financial   Dépôts
                  statements

                  P. 59                                   97
                  Central Sector -
                  Annual financial
                  statements               P. 97
                                           Savings Funds -
                                           Annual financial
                                           statements
 Concept of group




              Caisse des Dépôts’ activities stem from its original mission       Events of the financial year
              as statutory depository of funds from private sources, which       The 2005 financial year saw, in particular, the reorganisation
              the legislator wished to protect by an administration that         of the property arm. This sought to clarify and simplify the
              guarantees their complete security.                                organisation of Caisse des Dépôts’ property activities, in
                                                                                 order to strengthen them, develop them and tailor them better
              These funds, which enable public-interest investments to           to France’s requirements for social and intermediate rented
              be financed and local development to be supported, have            housing.
              also led Caisse des Dépôts to become a major player in the         This reorganisation sought to:
              financial markets, and today through specialist subsidiaries       ■ establish a collective-interest property arm around Société
              that are subject to market forces.                                 Nationale Immobilière;
                                                                                 ■ strengthen and develop Icade in competitive markets.
              This entity is a public and decentralised group, carrying on
              its activities both within and outside France, in particular in    Lastly, Caisse des Dépôts has strengthened its role as a
              the field of financial, property and services activities, which,   long-term investor in French businesses by its sharehold-
              depending on their nature, fall either within public mandates      ings in major French quoted companies and the support
              or the competitive sector.                                         contributed to their development strategies.

              Public-interest missions                                           Presentation of the financial statements
              ■  management of passbook savings funds and financing              For accounting and financial presentation purposes, the
              of social housing;                                                 Caisse des Dépôts group’s activities are divided according
              ■ administration under mandate of large public-sector              to its two principal missions:
              pension schemes in establishments that are decentralised,          ■ the administration of the funds under mandate that are
              in particular in Angers and Bordeaux;                              entrusted to Caisse des Dépôts in accordance with rules
              ■ regulated banking and financial activities;                      defining the nature of the services provided and the finan-
              ■ support for local development, for urban policy, and for         cial conditions that are attached thereto. Such funds are
              job creation and SMEs.                                             administered on a totally individualised basis. This concerns
                                                                                 in particular the savings funds centralised at Caisse des
              Competitive activities                                             Dépôts and the administration of public-sector pension
              t financial activities under the aegis of Caisse Nationale         funds;
              des Caisses d’Epargne (CNCE), a holding company for strate-        ■ a direct activity carried on by the Central Sector –the
              gic governance of the following activities:                        financial and administration entity of Caisse des Dépôts–,
              ■ investment banking activities with mainly the entities of        which is administered differently from the transactions under
              the Ixis CIB arm (capital markets and financing), the IAM          mandate, both within and outside France, by the groups
              group arm (asset management) and the CACEIS arm (secu-             that come under it, in particular Icade, Société Nationale
              rities services);                                                  Immobilière, Transdev, Egis, Compagnie des Alpes, VVF and
              ■ commercial banking activities, bringing together in partic-      CNP Assurances as well as the CNCE strategic participat-
              ular the entities of the CFF group, of the Palatine bank and       ing interest. Only this activity is deemed to constitute a group
              of the subsidiaries specialising in insurance (Ecureuil vie and    that is able to be the subject of consolidated financial state-
              Ecureuil IARD).                                                    ments, drawn up in accordance with the accounting rules
              t personal insurance with CNP Assurances;                          applicable to credit institutions. The consolidating entity is
              t services and engineering for regional and local devel-           the Central Sector; the subsidiaries are fully or proportion-
              opment with the Egis, Transdev, Compagnie des Alpes and            ately consolidated or accounted for using the equity method,
              VVF groups;                                                        depending on the level of control.
              t property activities placed in Société Nationale Immobilière
              (SNI) and Icade;                                                   This distinction is shown by the exclusion from the scope
              t private equity organised around CDC Entreprises.                 of consolidation (i.e. the consolidated entities) of the sav-
                                                                                 ings funds and pension funds. Their financial statements
                                                                                 and the notes thereto are set out separately.




|2|   Caisse des Dépôts | Financial Report 2005
Audit of the financial statements




Since the 2004 financial year, Caisse des Dépôts has com-
plied with the following provisions of Article 30 of French
Law No. 84-148 of 1 March 1984, as amended by Article
110 of French Law No. 2004-1484 of 30 December 2004:
“Public institutions of the State, whether they are subject or
not to public accounting rules shall be obliged to appoint at
least two statutory auditors and two alternates when they
draw up consolidated accounts pursuant to Article 13 of
Law No. 85-11 of 3 January 1985 relating to the consolidated
accounts of certain commercial companies and public under-
takings.”
“Each year, Caisse des dépôts et consignations shall sub-
mit to the finance commissions of the two assemblies its
company and consolidated accounts, certified by two statu-
tory auditors. The supervisory commission of Caisse des
dépôts et consignations shall appoint the statutory audi-
tors as well as their alternates on a motion from the chief
executive officer.”




                                                                 Caisse des Dépôts | Financial Report 2005   |3|
Group




        Caisse des Dépôts group

        Highlights                                     P. 5

        Consolidated financial statements
          - Consolidated balance sheet                 P. 6
          - Consolidated off-balance sheet items       P. 7
          - Consolidated income statement              P. 8
          - Notes to the financial statements          P. 9

        Central Sector - Annual financial statements
          - Balance sheet                              P. 59
          - Off-balance sheet items                    P. 60
          - Income statement                           P. 61
          - Notes to the financial statements          P. 62
Highlights




Creation of CDC Projets Urbains                                    Part-disposal of Sogeposte shares

The Central Sector decided to make its subsidiary CDC              During the 1st half of 2005, the Central Sector disposed of
Projets Urbains (formerly Solidec) the vehicle for carrying the    14% of Sogeposte’s capital to SF2, a subsidiary of La Poste,
public-interest property assets of the Local and Regional          thus reducing the level of its participating interest to 35% of
Development Division (Direction du développement territorial).     the capital.
In this connection, the Central Sector undertook to carry
out a €350 million recapitalisation. An initial tranche of         Integration of Retraite des Mines
€180 million was released in July 2005 in order to finance the
commencement of the subsidiary’s activity, as well as the trans-   Over the first half of 2005, and in accordance with a decision
fer, at the end of the financial year, of assets (€62.9 million    of the authorities, the Central Sector took over the admin-
net) of the Central Sector of a similar kind to those which        istration of the pension and invalidity risk of the Caisse des
represent the subsidiary’s ordinary deal flows. This company       Mines, which became the Retraite des Mines (Miners Pension
was fully consolidated from 1 January 2005.                        Fund), and it absorbed the personnel from 1 May 2005.

Adjustment to the price of the SNI                                 Framework agreement 2006-2008
securities purchased from the State
                                                                   On 20 December 2005, Caisse des Dépôts entered into a new
The Central Sector had acquired, during the first half of          agreement, covering the period 2006-2008, with the trade
2004, the State’s participating interest in Société Nationale      union organisations representing the personnel. This gave
Immobilière (74%). The purchase contract provided for a            rise to the measurement of new employee benefit commit-
price adjustment of up to €58.8 million to this €518.6 mil-        ments, recognised in accordance with the accounting prin-
lion investment.                                                   ciples set out below in the presentation and valuation rules.

At 30 June 2005, the final value of the assets and liabilities
identified on the date of acquisition of SNI was determined
and the price adjustment provided for in the purchase con-
tract was recognised in full. The valuation difference mainly
relates to land and debt.

Acquisition by CNP Assurances of
Fineco Vita

On 17 February 2005, CNP Assurances acquired 57.5% of
the Italian life assurance company, FinecoVita, for a total of
€589.5 million. This company is fully consolidated in the
CNP Assurances group’s accounts.




                                                                                                   Caisse des Dépôts | Financial Report 2005   |5|
Consolidated Financial Statements
Consolidated balance sheet


              (in millions of euros)                                                            Notes           31.12.2005   31.12.2004

               Assets
              Interbank and similar transactions                                                                   30,044       30,928
              Cash and balances at central (or post office) banks                                                       4            5
              Treasury bills and similar securities                                                   3            18,722       18,465
              Loans and advances to credit institutions                                               1            11,318       12,458
              Customer transactions                                                                                 9,529        2,750
              Ordinary overdrafts                                                                     2               843          666
              Commercial loans and advances                                                           2
              Other loans and advances to customers, and leasing and similar transactions             2             8,686        2,084
              Debt securities, equities and other fixed-income and variable-yield securities                       65,830       60,513
              Debentures and other fixed-income securities                                            3            51,636       46,816
              Equities and other variable-yield securities                                            3            14,194       13,697
              Investments of insurance undertakings                                                   4            88,553       73,938
              Participating interests, shares in affiliated undertakings, and other securities held long-term       7,471        6,657
              Participating interests                                                                 5             2,579        2,260
              Participating interests accounted for by the equity method                              6             4,892        4,397
              Tangible and intangible fixed assets                                                    7             7,122        6,876
              Goodwill                                                                                8               577          390
              Prepayments and accrued income and other assets                                         9             6,279        5,775
              Total assets                                                                                        215,405      187,827

               Liabilities and equity
              Interbank and similar transactions                                                                   36,832       27,715
              Central (or post office) banks                                                                            2           14
              Amounts owed to credit institutions                                                   10             36,830       27,701
              Customer transactions                                                                                45,748       47,901
              Ordinary deposit liabilities to customers                                             11             32,113       28,577
              Other amounts owed to customers                                                       11             13,635       19,324
              Debts evidenced by certificates                                                                       4,709        3,563
              Interbank market securities and negotiable debt instruments                           12              4,502        3,327
              Debenture loans and similar                                                           12                207          236
              Technical reserves of insurance undertakings                                          13             84,669       71,402
              Accruals and deferred income and other liabilities                                    14             23,081       18,444
              Negative goodwill                                                                       8                 8           16
              Provisions                                                                            15                652          750
              Subordinated debts                                                                    12              1,174        1,168
              Fund for general banking risks (FGBR)                                                 16                610          610
              Minority interests (excluding FGBR)                                                   16              1,661        1,533
              Group share of equity (excluding FGBR)                                                16             16,261       14,725
              Consolidated and other reserves                                                                      14,174       12,813
              Profit for the year                                                                                   2,087        1,912
              Total liabilities and equity                                                                        215,405      187,827




|6|   Caisse des Dépôts | Financial Report 2005
Consolidated off-balance sheet items


(in millions of euros)                                                                                                       31.12.2005               31.12.2004

 Financing and guarantee commitments and commitments given in respect of securities
Financing commitments
To credit institutions (1)                                                                                                              12                     137
To customers (2)                                                                                                                     7,119                  26,441
Guarantee commitments
To credit institutions (3)                                                                                                           1,638                    1,196
To customers (4)                                                                                                                     1,791                    3,585
Commitments in respect of securities
Securities deliverable                                                                                                                 205                         5
Insurance commitments given                                                                                                            275                      227

 Financing and guarantee commitments and commitments received in respect of securities
Financing commitments
Received from credit institutions (5)                                                                                              10,642                   12,552
Guarantee commitments
Received from credit institutions (6)                                                                                                  761                    2,772
Received from customers                                                                                                                813                    1,330
Commitments in respect of securities
Securities receivable                                                                                                                  451                      827
Insurance commitments received                                                                                                       2,340                    2,059

 Other commitments given and received
Other commitments given                                                                                                                804                      725
Other commitments received                                                                                                             240                      242

(1) The change in the financing commitments granted to credit institutions is mainly explained by the cancellation of the commitment of €124 million in favour of
the savings funds in respect of subsidised loans (rented social housing stock renovation programme).
(2) Acoss's authorised overdraft was reduced from €25 billion at 31 December 2004 to €13 billion at 31 December 2005. At 31 December 2004, the envelope
granted had not been fully utilised. At 31 December 2005, Acoss made a drawdown totalling €7 billion, accounting for a residual commitment of €6 billion.
(3) The increase in the guarantee commitments to credit institutions of €442 million at 31 December 2005, compared with 31 December 2004, arises from
reduced utilisation by ICIB of the agreement for the provision of securities entered into with Caisse des Dépôts. The residual amount of the commitment is
therefore revised upwards by around €448 million (at 31 December 2004, the drawdown was €507 million, compared with €59 million at 31 December 2005).
The residual commitment is divided between the aforementioned agreement between Caisse des Dépôts and ICIB totalling €1.5 billion and an unpaids risk
guarantee issued to CGLS of €152 million.
(4) The guarantee commitments to customers were virtually halved in 2005, compared with 2004 (reduction of €1,794 million) mainly owing to a reduction in the
outstandings of guarantees issued to UCITS (fall of €2 billion).
(5) The financing commitments received from credit institutions fell by €1.9 billion during the period, in view of the non-renewal of the short-term credit commitment
(envelope of €3 billion) granted by CNCE. The residual balance mainly comprises the overdraft commitment granted by ICIB to Caisse des Dépôts (€10 billion).
(6) The guarantee commitments received from credit institutions were considerably reduced by €2 billion, mainly owing to the reduction in the ICIB counter-
guarantees in respect of the guaranteed UCITS (cf point 4).




                                                                                                                               Caisse des Dépôts | Financial Report 2005   |7|
Consolidated Financial Statements
Consolidated income statement


                                                                                                 Pro forma
              (in millions of euros)                                       Notes   31.12.2005    31.12.2004    31.12.2004
              Interest receivable and similar income                                   1,849         2,055         6,604
              Treasury and interbank transactions                             20         227           190         1,590
              Customer transactions                                           21         149           373         1,302
              Debentures and other fixed-income securities                    22       1,420         1,243         1,974
              Other interest receivable and similar income                                53           249         1,738
              Interest payable and similar charges                                    (1,210)       (1,415)       (6,003)
              Treasury and interbank transactions                             20        (499)         (416)        (2,170)
              Customer transactions                                           21        (602)         (681)          (943)
              Debentures and other fixed-income securities                    22        (109)         (260)        (1,737)
              Other interest payable and similar charges                                                (58)       (1,153)
              Income from variable-yield securities                           23         511           404           448
              Commissions (income)                                            24          49            46           584
              Commissions (charges)                                           24         (46)          (39)         (153)
              Gains or losses on trading portfolio transactions               25         (17)          (28)          929
              Gains or losses on available-for-sale portfolio
              transactions and similar                                        26         781           596           341
              Other net banking operating income and charges                  27         441           397           394
              Gross margin on insurance activities                            28         841           738           808
              Net income from other activities                                29       1,829         1,744         1,774
              Net banking income                                                       5,028         4,498         5,726
              General operating charges                                               (2,472)       (2,306)       (3,186)
              Personnel expenses                                              30       (1,892)       (1,694)       (2,245)
              Other administrative expenses                                            (1,157)       (1,113)       (1,442)
              Reinvoicings                                                                577           501           501
              Net amortisation and depreciation charges and
              transfers to provisions                                         31        (204)         (209)         (237)
              Gross operating profit                                                   2,352         1,983         2,303
              Cost of risk                                                    32         (26)          (86)         (193)
              Operating profit                                                         2,326         1,897         2,110
              Share of net profit of interests accounted for
              by the equity method                                            6          461           354           271
              Gains or losses on fixed assets                                 33          58           (16)          568
              Profit on ordinary activities before taxation                            2,845         2,235         2,949
              Exceptional profit/loss                                                     10             (1)        (101)
              Income tax                                                      34        (558)         (493)         (686)
              Net charges for amortisation of goodwill                                   (30)          (23)          (41)
              Net transfers to the fund for general banking risks (FGBR)                                             (43)
              Minority interests                                                        (180)         (164)         (166)
              Net profit attributable to the group                                     2,087         1,554         1,912




|8|   Caisse des Dépôts | Financial Report 2005
Notes to the Financial Statements




I - Principles used in preparing                                  Caisse des Dépôts activities as would have appeared if the
the consolidated financial statements                             completion of the Restructuring transactions had taken place
of the Caisse des Dépôts group                                    on 1 January 2004.
                                                                  Nor is their purpose to provide an indication as to the finan-
The consolidated financial statements have been drawn up          cial position and earnings of the activities of the Caisse des
in accordance with the provisions of Regulation No. 99-07 of      Dépôts group at any date or for any future period.
the French Accounting Regulation Committee (CRC) relating
to the consolidation rules for undertakings coming under the      2. Changes in accounting methods
French Banking and Financial Regulation Committee (CRBF).         t Determination of impairment arising from credit risk
The presentation of the financial statements is in accordance     The Caisse des Dépôts group is subject, from 1 January
with the provisions of CRC Regulation No. 2000-04 relating        2005, to the application of the discounted cash flows
to the consolidation rules for undertakings coming under          method in order to calculate the impairment of doubtful and
the CRBF.                                                         compromised doubtful outstandings, as explained in Article
                                                                  13 of CRC Regulation No. 2002-03 relating to credit risk.
II - Consolidation principles                                     The main effect has been on the CNCE group with a net
and methods                                                       impact on equity of €64 million, i.e. €22 million attributable
                                                                  to the Caisse des Dépôts group.
1. Comparability of financial statements
The Restructuring transactions between Caisse des Dépôts          t Recognition of transactions in securities
and CNCE have materially altered the scope of consolida-          CRC Regulation No. 2005-01 relating to the recognition of
tion as from the 2004 financial year.                             transactions in securities, amending Regulation No. 90-01
The main impact has been on the Eulia arm of the business:        of the CRBF, is applicable to periods commencing on or
CDC Ixis, which was previously proportionately consolidated,      after 1 January 2007.
is now accounted for by the equity method via the CNCE            Caisse des Dépôts group did not elect for the early appli-
group.                                                            cation of this Regulation from 1 January 2005.

In order to understand the results of the Caisse des Dépôts       t Amortisation, depreciation and impairment of assets
group at 31 December 2005, compared with 31 Decem-                CRC Regulation No. 2002-10 relating to the amortisation,
ber 2004, a pro forma income statement is presented, in           depreciation and impairment of assets has been applied by
order to take account of the Restructuring transactions that      the Caisse des Dépôts group since 1 January 2005.
took place in 2004.
The 2004 pro forma income statement has been drawn up             The Caisse des Dépôts group now applies the components
with a scope comparable with that used for preparing the          method for the recognition and depreciation of capitalised
2005 financial statements.                                        expenditure.
The main assumptions in producing the 2004 pro forma
income statement are therefore:                                   Each component is written down over a period of use appro-
■ recognition of the Restructuring transactions,                  priate to it according to the type of property.
■ recognition of the contributions of the Eulia group (and of
CDC Ixis) through CNCE accounted for by the equity method,        First-time adoption of the components method was carried
■ establishment of a CNCE contribution including the coop-        out retrospectively by reconstituting historical amortised
erative investment certificates issue by the regional banks       cost, as prescribed by Notice No. 2003-E of the Emergency
(caisses régionales), taking account of the income actually       Committee (Comité d’Urgence) dated 9 July 2003.
received in 2005,
■ attribution, to the Central Sector and to its direct sub-       The historical gross values of the fixed assets were recon-
sidiaries, of the assets (consolidated and non-consolidated)      stituted using the current allocation of the cost as new of
acquired from the CNCE (in particular the private equity          the fixed assets according to the type of property.
arm of CDC Ixis, property subsidiaries, Sogeposte, and the
CDC Ixis portfolio securities),                                   The application of CRC Regulation No. 2002-10, relating to the
■ elimination of the impacts on profit and loss of the Restruc-   amortisation, depreciation and impairment of assets constitutes
turing transactions (Restructuring gain).                         a change of accounting method that resulted in a net negative
                                                                  impact of €73 million on consolidated equity at 1 January 2005.
The pro forma financial statements are provided for guid-
ance. They do not claim to reflect exactly the results of the




                                                                                                  Caisse des Dépôts | Financial Report 2005   |9|
Consolidated Financial Statements




               t Recognition of goodwill in functional currency                   t Special case of special purpose entities
               From 1 January 2005, the Caisse des Dépôts group has               When the group or a group company possesses in
               been recording goodwill in the functional currency. This           substance, in particular under contracts or provisions of the
               change in policy affects more specifically the CNP Assur-          articles of association, control of an entity, the latter is
               ances group, whose net equity is reduced by €135 million           consolidated, even where there is no capital link. Substantive
               as regards the translation reserves (adjustment of the Caixa       control is assessed by means of the following criteria defined
               Seguros goodwill), i.e. an impact of €58 million attributable      by CRC No. 99-07: powers of decision-making and of
               to the Caisse des Dépôts group.                                    management over the day-to-day activities of the special
                                                                                  purpose entity, or over the assets that it comprises; and the
               t Accounting treatment of credit risk                              ability to benefit from all or most of the earnings and exposure
               The provisions of CRC Regulation No. 2005-03 amending              to most of the risks.
               Regulation No. 2002-03 relating to credit risk, of mandatory       Excluded from the scope are entities carrying on their activ-
               application at 1 January 2006, were not applied early.             ity under a fiduciary relationship, with management on
                                                                                  behalf of third parties and in the interest of different stake-
               III - Consolidation principles and                                 holders.
               procedures
                                                                                  Excluded from the scope are semi-public companies (SEMs
               1. Consolidation methods and scope                                 and SAIEMs) and low-cost housing (HLM) companies, for
               The consolidated financial statements of the Caisse des            which there are restrictions on the availability of the assets
               Dépôts group bring together the accounts of the Central            and earnings and, in the Insurance sector, controlled UCITS
               Sector, the consolidated accounts of the sub-groups and            and transparent companies with a lettings management
               the accounts of the subsidiaries.                                  property activity, which are included in the policyholders’
               Also consolidated are the companies whose contribution to          commitments.
               the result of the sub-group to which they belong is deemed
               material, and newly-created or acquired companies that are         t Closing dates for subsidiaries’ financial statements
               expected to grow rapidly.                                          The financial statements of the consolidated subsidiaries are
                                                                                  made up to 31 December. Consolidated companies end-
               t Full consolidation                                               ing their financial year on a date that differs by more than
               Undertakings that are exclusively controlled are fully consol-     three months are consolidated on the basis of a position at
               idated.                                                            31 December. Where the company’s closing date falls within
               Exclusive control is defined as the power to determine the         the three-month period, and when a true and fair view and
               financial and operational policies of an undertaking, in order     economic picture of the group necessitates this, material
               to derive benefit from its activities.                             transactions that have taken place between the closing date
               This results either from the holding of the majority of the vot-   and 31 December are recognised when preparing the con-
               ing rights, or from the appointment for two successive             solidated financial statements.
               periods of the majority of the members of the management
               bodies, or from the right to exercise a dominant influence         2. Changes in scope
               under contracts or under provisions of the articles of asso-       In order to harmonise financial communications and disclo-
               ciation.                                                           sure with the organisation of the group as described by Gen-
                                                                                  eral Management (Direction Générale), the activity of the
               t Proportionate consolidation                                      Caisse des Dépôts group is now divided into 6 principal
               Companies in which the group exercises joint control are           business arms:
               proportionately consolidated.                                      ■ Caisse des Dépôts (including direct subsidiaries),
               Joint control is defined as the sharing of the control of an       ■ Property (SNI and Icade),
               undertaking jointly operated by a limited number of mem-           ■ Insurance (CNP Assurances);
               bers or shareholders, so that the financial and operational        ■ Private equity (CDC Entreprises);
               policies result from their agreement.                              ■ Services (Transdev, Egis, Compagnie des Alpes and VVF);

                                                                                  ■ Strategic participating interest (CNCE).

               t Equity method
               Undertakings over which significant influence is exercised         The main changes in the scope of consolidation for the 2005
               are accounted for by the equity method. Significant influ-         financial year were as follows:
               ence results from the power to participate in the financial        ■ Caisse des Dépôts: creation of CDC Projets Urbains (100%);
               and operational policies of an undertaking, without holding
               the control thereof.


| 10 |   Caisse des Dépôts | Financial Report 2005
■ Property: as part of the reorganisation of the Property arm,        Certain group entities, held directly or indirectly, form part
Icade disposed of its SCIC Habitat, CD Habitat, CD Cités              of a French tax consolidation group.
and SCET participating interests to SNI;
■ Insurance: acquisition by CNP Assurances of 57.5% of                For France, the deferred tax rates applied are, for 2005, 34.43%
Fineco Vita in February 2005;                                         (full rate) and 15.50% (reduced rate), compared, respec-
■ Private equity: integration of FCPR Part’Com (100%);                tively, with 34.93% and 15.72% at 31 December 2004.
■ Services:
  • Disposal by Egis of the Egis Deutschland group;                   Information relating to taxation is given in Note 34.
  • Acquisition by Compagnie des Alpes of Serre Chevalier and
  of the leisure parks, Centres Attractifs Jean Richard and Planète   5. Translation of financial statements in
  Sauvage;                                                            foreign currencies
  • Acquisition by Transdev of the British company Bournemouth        The balance sheets and statements of off-balance sheet
  Transport (end of 2005), S2M (Portugal) and AMT (Italy).            items of foreign companies are translated at the rates at the
                                                                      end of the period (except for equity maintained at the histor-
3. Goodwill and fair value adjustements                               ical rate) and the income statements at the average rate for
Goodwill corresponds to the difference between the cost of            the period. Goodwill is recorded in the functional currency.
shares in a consolidated undertaking and the group’s equity           Translation differences resulting therefrom are included in
in the fair value of the underlying assets, liabilities and off-      equity under “Translation reserve”.
balance sheet items at the acquisition date.
Fair value adjustments –corresponding to the difference               6. Intra-group transactions
between the value of the undertaking’s assets, liabilities and        Reciprocal accounts, as well as income and expenses aris-
off-balance sheet items retained in consolidation and their           ing from intra-group transactions that have a material impact
book value in the undertaking’s accounts– are amortized,              on the consolidated financial statements, are eliminated,
written down or written back to income using the rules nor-           when they affect subsidiaries that are fully or proportionately
mally applicable to the corresponding items.                          consolidated.
                                                                      Also eliminated from the balance sheet are securities issued by
The goodwill, positive or negative, is entered in the balance         group entities, if they do not form part of the trading portfolio.
sheet and taken to profit and loss over a period that must
reflect the assumptions adopted and the objectives fixed on           7. Leasing transactions and lease or hire
the acquisition without, normally, exceeding 20 years.                transactions with an option to purchase and
                                                                      leased assets
In the event of unfavourable material changes affecting               Leasing transactions and lease or hire transactions with an
the assumptions used as a basis for determining the amorti-           option to purchase are recognised in the company financial
sation schedule, the goodwill is the subject of an exceptional        statements according to their legal nature.
amortisation charge and/or of a revision of this schedule.
                                                                      As these are, in substance, credit transactions, the regulations
4. Deferred taxes                                                     require that they be restated in the consolidated financial
Deferred taxes are recognised once a temporary difference is          statements in order to highlight their economic nature.
identified between the adjusted carrying values and the values        Leasing transactions and lease or hire transactions with an
for tax purposes of the balance sheet items. The method               option to purchase are therefore included in the consoli-
applied is the liability method, according to which the deferred      dated balance sheet at their outstanding amount determined
taxes recognised during earlier periods are adjusted when             in accordance with so-called “financial accounting”. The
there is a change in the tax rate. The relevant impact is shown       unrealised reserve, comprising the difference between the
as an increase or reduction in the deferred tax charge.               accounts depreciation and the financial depreciation of the
Thus, the tax calculation incorporates the progressive reduc-         invested capital is entered in consolidated reserves at its
tion in the taxation of the long-term capital gains generated         amount net of deferred taxes.
in respect of the long-term equity interests or participating
interests (titres de participations) included in the “Marini          Fixed assets acquired under a finance lease are restated
amendment”.                                                           on consolidation, in order to show them in the balance
                                                                      sheet as if they had been purchased on credit.
The deferred tax calculations are made in respect of each
tax entity and, in accordance with the prudence principle,
deferred tax assets are shown only if there is a strong like-
lihood of offset against future taxable profits.


                                                                                                       Caisse des Dépôts | Financial Report 2005   | 11 |
Consolidated Financial Statements




               IV – Presentation and valuation rules –                            advances in accordance with the “contagion” principle. For
               banking and financial activities                                   groups, the contagion principle is applied on a case-by-case
                                                                                  basis.
               1. Recognition in the income statement
               Interest and commissions qualified as interest are recognised      Compromised doubtful loans and advances are identified
               on an accruals basis in accordance with the principle of           for accounting purposes among doubtful loans and advances.
               separation of accounting periods. Commissions not qualified        Compromised doubtful loans and advances are outstand-
               as interest are recognised when they are received or paid.         ings for which the counterparty’s credit status is such that,
                                                                                  after a reasonable period of classification under doubtful
               2. Foreign currency transactions                                   outstandings, no reclassification as a sound outstanding is
               Assets, liabilities and off-balance sheet commitments denom-       foreseeable; loans and advances for which there has been
               inated in foreign currencies were translated at the exchange       an event of default; as well as certain doubtful loans or
               rate at 31 December 2005.                                          advances exceeding one year and that are of an irrecover-
                                                                                  able nature requiring an impairment to be determined, and
               Foreign exchange gains and losses resulting from ordinary          those that it is possible to contemplate will eventually be
               transactions entered into in foreign currencies are recog-         written off as bad debts. This analysis must be performed
               nised in the income statement.                                     having regard to the collateral or guarantees that exist for
                                                                                  such outstandings.
               Spot foreign exchange transactions are valued at the spot
               rate. Forward foreign exchange transactions carried out            Doubtful outstandings and compromised doubtful outstandings
               other than for hedging purposes are valued at the rate for         may be reclassified as sound outstandings when payments
               the term still to run. Forward foreign exchange transactions       have regularly resumed at the amounts corresponding to the
               entered into for hedging purposes are valued symmetrically         original contractual instalments and when the counterparty no
               with the hedged item.                                              longer presents any risk of default. They may also be entered
               Furthermore, premiums and discounts relating to hedged             in restructured outstandings if a rescheduling of the loan takes
               forward foreign exchange transactions are taken to the             place, after a period of observation.
               income statement over the period still to run until the maturity
               of such transactions.                                              For loans presenting a known credit risk a provision is recorded
                                                                                  for the discounted value of all the anticipated losses on out-
               3. Loans and advances to credit institutions                       standings classified as doubtful loans and advances and as
               and customers                                                      compromised doubtful loans and advances.
               Such loans and advances include credits granted and ordi-
               nary overdrafts, as well as securities received under resale       Interest is recognised on an accruals basis in respect of
               agreements with or without actual delivery.                        sound loans and advances, including restructured loans and
                                                                                  advances and in respect of non-compromised doubtful loans
               t Loans                                                            and advances. Interest on compromised doubtful loans and
               Loans are recognised under assets at their redemption value.       advances is recognised in the income statement on a cash
               The relevant interest is charged in the income statement on        basis.
               an accruals basis.
               Loans are transferred to doubtful loans and advances as            Recognised interest in respect of doubtful loans and advances
               soon as they carry a known credit risk, that is to say when        that is not collected is fully written down.
               it is likely that all or part of the sums owed under the agree-
               ment will not be received, notwithstanding the existence of        When the institution deems the loan or advance to be def-
               collateral or a guarantee. In any case, loans considered to        initely irrecoverable, a loss is recognised.
               be doubtful are loans with instalments past due for more           Loans and advances that are restructured on below market
               than three months (more than six months for property loans,        terms are separately identified, where appropriate, under a
               and more than nine months for local authorities), and loans        specific sub-category of “sound outstandings”. They give
               for which the counterparty’s financial situation has deterio-      rise to the recognition under “cost of risk” of a discount
               rated, resulting in a risk of non-recovery, as well as outstand-   representing the future interest difference, by reference to the
               ings that are the subject of collection proceedings.               lower of the original rate and the market rate on the day of
                                                                                  the restructuring, as a deduction from the assets at the time
               Likewise, all loans and advances to a counterparty, as soon        of the restructuring. This discount is written back over the
               as the counterparty has a loan or advance entered in doubt-        remaining life of the loan in the interest margin.
               ful loans and advances, are treated as doubtful loans or


| 12 |   Caisse des Dépôts | Financial Report 2005
t Securities received under a resale agreement with                 Where appropriate, the counterparty risk is taken into account
or without actual delivery                                          in valuing these securities at the closing.
These are entered under assets in an account representing the       The accounting provisions of CRC Regulation No. 2002-03
receivable so generated. The relevant income is recognised in       relating to credit risk in undertakings coming under the CRBF
profit or loss for the financial year on an accruals basis. Secu-   apply, where appropriate, to the credit risk attached to the
rities taken under a resale agreement with actual delivery and      held-to-maturity securities.
then assigned are recognised under liabilities as securities lia-   The difference between the acquisition price and the
bilities. These are therefore valued at their market value.         redemption value of the securities (premium/discount) is
                                                                    amortised using the yield-to-maturity method for negotiable
4. Securities and transactions in securities                        debt instruments and fixed-rate debt securities, and using the
                                                                    straight-line method for other debt securities.
4.1. Securities
Securities are recognised within five accounting categories         t  Portfolio securities
corresponding to various activities of the institution.             Portfolio securities are investments made regularly with the
                                                                    aim of deriving therefrom a capital gain in the medium term
t Trading securities                                                without the intention of investing long-term in the develop-
Trading securities comprise, in addition to transferable secu-      ment of the business or of actively participating in the oper-
rities, Treasury certificates and negotiable debt instruments.      ational management of the issuing undertaking. Such secu-
They are to have a quick turnover period not exceeding six          rities are recognised at their acquisition price.
months. They are traded on liquid markets and valued at             They are measured at the lower of their historical cost or of
their market value. On each closing, changes in the market          their value in use.
value are recognised in profit and loss.                            The value in use is determined by taking account of the gen-
                                                                    eral prospects for change in the issuer and of the holding
t Available-for-sale securities                                     period. For quoted companies, the average of the stock
Available-for-sale securities include securities that do not        market prices recorded over a sufficiently long period tak-
meet the conditions for classification under the trading or         ing account of the contemplated holding period, in order to
held-to-maturity securities portfolios. They also include trad-     mitigate the impact of sharp one-off fluctuations in the stock
ing securities reclassified at the end of a period of holding       market price, generally represents the value in use.
exceeding six months. In this case, the reclassification is
made at the market price on the day of the transfer.                t Non-consolidated long-term equity interests
Available-for-sale securities are dealt with according to the       Non-consolidated long-term equity interests are recognised
“first-in, first-out” method and are valued as follows:             at acquisition cost.
■ Equities and debentures: unrealised capital losses calcu-         They are measured according to their value in use by reference
lated by reference to the market value on the basis of the          to various criteria such as net assets, profitability outlook and
closing rate are recognised in the form of impairment.              capitalisation of earnings. A provision is recorded in the event
                                                                    of a long-term impairment in the value in use of such interests.
■ Treasury certificates, negotiable debt instruments and
interbank market instruments: impairment is established             4.2. Securities transactions
according to the issuers’ creditworthiness and by reference         t Inflation-indexed fungible Government bonds (OATs)
to market indicators.                                               In the absence of specific regulations applicable to credit
                                                                    institutions, the indexation of the nominal amount of inflation-
Any premiums or discounts are spread over the residual life         indexed fungible Government bonds (OATs) may be recog-
of the security (yield-to-maturity method for fixed-rate debt       nised using one of the following methods: recognition of the
securities and negotiable debt instruments, and straight-line       indexation of the nominal amount on the disposal or maturity
for other debt securities).                                         of the bond, recognition over the period still to run of the
                                                                    bond, or immediate recognition in income or charges for the
t Held-to-maturity securities                                       period.
This category comprises fixed-income securities intended to
be held until their maturity and backed by stable financing or      By analogy with the treatment recommended by Article
appropriate hedging.                                                R 332-19 of the French Insurance Code (Code des Assu-
No provision is recorded for unrealised capital losses that may     rances), as amended by Decree No. 2002-1535 of 24 Decem-
exist by reference to the difference between the carrying           ber 2002, the gain or loss arising from the indexation of the
amount of the securities and their market price.                    nominal amount of the bonds to the general level of prices
                                                                    is recognised in income or charges for the period.


                                                                                                    Caisse des Dépôts | Financial Report 2005   | 13 |
Consolidated Financial Statements




               t Loaned and borrowed securities                                   the 2004 financial year. In this regard, Note 18-b indicates,
               Loaned securities are valued according to the rules for the        for each class of derivative financial instruments, their fair
               portfolio of origin.                                               value (if this can be determined by reference to a market
               Borrowed securities are recognised, at the market value on         value or by applying generally accepted models and tech-
               the day of the borrowing, in balance sheet assets under the        niques), as well as details on the volume and nature of the
               category of “trading securities”, and in balance sheet liabil-     instruments.
               ities, in order to record the security liability with respect to
               the lender. These items are valued on the basis of their mar-      t  Interest-rate and currency swap agreements
               ket price on the closing dates.                                    ■ Hedging   transactions: charges or income for instruments
               Securities lending and borrowing transactions secured by           allocated to hedge an item or a homogenous group of items
               cash are treated for accounting purposes as repurchase             are recognised in profit and loss in a manner that is sym-
               agreements with actual delivery.                                   metrical with the income or charges on the hedged items.
               The remuneration relating to such transactions is recognised       ■ Transactions forming part of specialist portfolio manage-
               on an accruals basis in profit and loss.                           ment: contracts are valued, on the accounts closing date,
                                                                                  at their market value. Pursuant to the regulations, this
               t Issues indexed to fund units                                     value takes account of an adjustment for counterparty
               These arrangements, which are comparable with structured           risks and the discounted value of future management
               transactions, consist mainly of zero coupon issues redeemable      expenses. The overall valuation difference is carried to the
               in full on maturity, which are indexed to fund performance.        income statement.
               The production of the index is assured by the purchase of
               the fund units concerned, whose performance accrues in             t Other interest-rate or foreign exchange transactions
               its entirety to subscribers on maturity.                           Other transactions mainly comprise futures and options.
                                                                                  ■ Hedging transactions: charges or income are carried to
               The overall engineering margin is estimated on the basis of        the income statement in a manner that is symmetrical with
               the market prices of the fund units, of the present value of       the method for recognising income or charges in respect of
               the future flows of the issues and of the future management        the hedged item.
               expenses, having regard to very conservative assumptions           ■ Transactions other than hedging transactions: contracts
               of early redemption in accordance with the rules applicable        are valued at their market value. Unrealised gains or losses
               when the valuation is made on the basis of models.                 on closing are recognised in profit or loss.

               5. Forward financial instruments                                   In order better to reflect the economic reality of the activity,
               Pursuant to the defined strategy regarding the development         illiquid instruments are also valued at a notional market value.
               of the dealing activities and the management of market risks,
               the Caisse des Dépôts group operates in all organised and          t Complex transactions
               over-the-counter markets for forward interest-rate and foreign     Complex transactions are composite combinations of instru-
               exchange financial instruments and options and in equities.        ments of identical or different types, natures and valuation
               Such operations are carried out, both in France and abroad,        methods.
               under allocated or general hedges and in the context of            Each component of the transaction is recognised in the bal-
               specialist trading portfolio management.                           ance sheet and in off-balance sheet items according to the
                                                                                  legal nature of the underlying products.
               For all such instruments, and whatever the management aim,
               the nominal value of the contracts and that of the underlying      The result is determined overall and recognised in a single
               or the exercise price is entered under off-balance sheet items.    entry, in order to reflect the economic nature of the trans-
               The recognition of the results for such instruments depends        actions, as if a single instrument were involved. In the case
               on the management aim.                                             of totally new products, without reference to an explicit reg-
                                                                                  ulation, the accounting approach to the result is based on
               The accounting provisions of CRC Regulation No.2002-03 relat-      reasoning by analogy with existing types of products.
               ing to credit risk in undertakings under the CRBF apply, where
               appropriate, to contracts traded on over-the-counter markets.      How the result is recognised depends on the management
                                                                                  aim:
               The transposition into French national law of the European         ■ Transactions that are part of a hedging strategy: for
               “fair value” and “modernisation” directives was effected for       prudential reasons, in the case for example of poor liquidity




| 14 |   Caisse des Dépôts | Financial Report 2005
of the market, the profit or loss is recognised on an accruals   The residual value, defined as the amount net of expected
basis. A provision is recorded in the case of a negative         disposal costs that an entity would receive from the disposal
market value.                                                    of the asset on the market at the end of its use, is recog-
■ Trading portfolio management or for which the result is        nised in the amount on which depreciation is charged when
similar to an arrangement fee: the result is recognised at the   this is both material and measurable.
outset. A discount is applied to take account of future man-
agement expenses and any counterparty risks.                     The application of the new regulatory principles result, for
                                                                 all the property assets, in non-recognition of the residual
t Market values                                                  value in the amount on which depreciation is charged, as
When the market price of the instruments or the valuation        this cannot be reliably determined.
parameters are not the subject of official quotations, alter-
native valuation methods are used. They involve one or more      Software and development costs are entered in assets and
of the following factors: confirmation of prices by outside      amortised over 3 years.
counterparties or brokers, comparison with actual transac-
tions and research for each class of issuer or instruments.      On each closing, if there is an internal or external indicator
Where the valuation of the instruments is based on models,       evidencing that an item of property may have significantly
these integrate the parameters affecting the valuation of        lost value, an impairment test is applied. The net carrying
such instruments, in particular the degree of liquidity of the   value of the asset is compared with its present value.
markets concerned. In a prudential approach, the calcula-        If the present value proves to be less than the net carrying
tions are adjusted to take account of the weaknesses of          value, the latter is reduced to the present value by means
some of these parameters, in particular as to their relevance    of a provision.
over a long period.
                                                                 Likewise, the forestry reserves are the subject of a provision
6. Tangible and intangible fixed assets                          for impairment in the event of a loss of value.
Pursuant to CRC Regulation No. 2004-06 relating to the def-
inition, recognition and measurement of assets, fixed assets     With respect to the insurance activities, the value in use of
are valued at their acquisition cost, comprising the purchase    the portfolio of contracts, corresponding to the estimate of
price, all directly attributable costs and the borrowing costs   the present value of the future profits that will be generated
where appropriate.                                               by the portfolio in existence on the acquisition date, is writ-
                                                                 ten down, for each uniform set of contracts, in accordance
CRC Regulation No. 2002-10 relating to the amortisation,         with a regularly reviewed schedule, reflecting the emergence
depreciation and impairment of assets is applied by the          of future profits over a reasonable period.
Caisse des Dépôts group.
The “components” approach has been adopted for oper-             7. Risks regarding investment property
ating and investment properties.                                 Caisse des Dépôts group holds, long-term, significant let-
                                                                 ting assets.
When a fixed asset comprises several elements that have
a different use, which may be replaced at regular intervals      Properties presenting on the closing an internal or external
or that may provide economic benefits at a different rate,       indication of loss of value, as well as those intended to be
each material element is recognised separately and depre-        disposed of in the medium-term are the subject of an impair-
ciated over its useful life.                                     ment test.
The identified components are depreciated on a straight-         For properties of a material amount, market value appraisals
line basis, over their estimated period of use, according to     are made by reference to external expert valuations.
the defined type of building.
                                                                 Impairment of the asset is recognised when the recoverable
The main components and depreciation periods used by             amount is less than the carrying value.
the Caisse des Dépôts group are:
■ Shell: 30 - 100 years                                          8. Amounts owed to credit institutions and
■ Roof/façade: 25 - 40 years                                     deposit liabilities to customers
■ Fixtures: 10 - 25 years                                        Such amounts comprise deposits, loans taken out and secu-
■ General and technical installations: 10 - 25 years             rities given under repurchase agreements with or without
■ Major maintenance: 15 years                                    actual delivery.




                                                                                                Caisse des Dépôts | Financial Report 2005   | 15 |
Consolidated Financial Statements




               t Loans                                                             11. Employee benefit commitments
               These are entered under liabilities at their redemption value.      Benefits granted to personnel are divided into a number of
               The relevant interest is recognised in the income statement         categories:
               on an accruals basis.                                               ■ short-term benefits: salaries, annual holidays and com-
                                                                                   pany performance-related pay;
               t Securities given under repurchase agreements with                 ■ post-employment benefits: pension scheme, end-of-serv-
               actual delivery                                                     ice payments, and reduced-rate retirement support;
               The liability generated is entered under liabilities. The secu-     ■ long-term benefits: long-service awards, bonuses linked
               rities are kept in their original portfolio and continue to be      to length of service, mobility assistance, and solidarity leave
               valued according to the rules applicable to this portfolio. The     (e.g. for voluntary work abroad);
               relevant interest is recognised in the income statement on          ■ Termination benefits: schemes for gradual ceasing of work
               an accruals basis.                                                  and help with business start-ups.

               9. Debts evidenced by certificates                                  Post-employment benefits, long-term benefits, and termina-
               Debts evidenced by certificates are analysed between: inter-        tion benefits, can be on a “defined contributions” or a “defined
               bank market securities and negotiable debt instruments              benefits” basis.
               (commercial paper, certificates of deposit and medium-term
               notes) debenture loans and similar.                                 Defined contribution schemes are generally covered by con-
               Accrued interest not yet payable relating to such items is          tributions made to pension organisations that deal with pay-
               entered in a related payables account with a corresponding          as-you-go or insurance-based schemes, which organisa-
               entry in the income statement.                                      tions then handle the payment of pensions, or by the State
                                                                                   as far as civil servants are concerned, and which thus dis-
               Issue expenses and premiums on redemption and issue of              charge Caisse des Dépôts group from any subsequent lia-
               debenture loans are amortised on a straight-line basis over         bility or obligation. The contributions paid constitute expenses
               the life of the loans.                                              for the period.

               10. Provisions                                                      Defined benefit schemes relate to staff benefits for which
               Under this heading are shown:                                       Caisse des Dépôts is committed to a level of benefits to
               ■ provisions covering potential liabilities that are precisely      employees. They constitute a medium or long-term potential
               identified, arising from banking transactions or financial          liability for the employer and therefore give rise to measure-
               instruments, as well as losses arising from certain business        ment and provisioning.
               sectors. Such provisions comprise, inter alia, provisions for
               interest subsidies in respect of “Housing Rehabilitation” loans     The age and retirement conditions adopted in the calculation
               that have been issued;                                              take account of the provisions of French Law No. 2003-775
               ■ provisions established under the provisions of CRC Reg-           of 21 August 2003 on the reform of pensions.
               ulation No. 2000-06, relating to liabilities. Such provisions are
               intended to cover potential liabilities and charges that are        The provision established is adjusted on each closing in
               clearly specified as to their purpose, and for which the amount     accordance with changes in the projected benefit obliga-
               or due date cannot be determined precisely; the establish-          tion for such commitments.
               ment of such is subject to the existence of an obligation to
               a third party on closing, and to the absence of consideration       Outside of France, there are various compulsory schemes
               that is at least equivalent expected from this third party. Such    to which the employer and employees contribute. The rel-
               provisions comprise, inter alia, provisions for notified tax        evant commitments are, as the case may be, paid to pen-
               reassessments;                                                      sion funds that are specific to the companies or recognised
               ■ a provision for taxes covering the potential tax corresponding    in the individual accounts of the companies concerned. They
               to rollover relief on securities exchange transactions (public      are not the subject of any adjustment in the group’s con-
               exchange offerings and mergers).                                    solidated financial statements.




| 16 |   Caisse des Dépôts | Financial Report 2005
12. Subordinated debts                                           Transferable securities and other fixed-income securities
This heading brings together debts which, in the event that      are recognised at their purchase price net of accrued income.
the debtor is wound up, will only be settled after the other     The difference between the redemption price of the secu-
creditors have been paid.                                        rities and their ex coupon purchase price is spread over the
                                                                 residual period of the securities by the yield-to-maturity
Accrued interest payable is entered in a “related payables”      method. A provision is recognised in the event of a risk of
account with a corresponding entry in the income statement.      default by the issuer.

13. Fund for general banking risks                               Furthermore, when the net carrying value of the property
This fund is designed to deal with the operational risks and     investments and of the variable-yield transferable securities
with the charges inherent in banking activities and financial    exceeds the overall realisable value of such assets, a liquid-
asset management activities that cannot be covered else-         ity risk reserve, equal to the difference between these two
where. This fund is the subject of charges or recoveries         values, must be established.
recognised in the income statement.
                                                                 t Technical reserves of insurance undertakings
V – Main presentation and valuation                              Technical reserves correspond to commitments vis-à-vis the
rules – insurance activities                                     policyholders and beneficiaries under the contracts.
                                                                 ■ Life assurance

The main accounting principles and valuation rules specific      With regard to contracts that include death cover, the reserve
to the insurance activities are maintained in the consolidated   that is established contains the portion of premiums written
financial statements of the Caisse des Dépôts group.             and unearned in the period.
                                                                 The mathematical reserves for premiums for non-unit-linked
The Caisse des Dépôts group applies CRC Regulation               contracts equate to the difference between the present value
No. 2000-05 relating to the rules for consolidation of under-    of the insurer’s and the policyholder’s commitments.
takings governed by the French Insurance Code (Code des          Life assurance reserves are established on the basis of dis-
Assurances).                                                     count rates not exceeding the expected yields, conserva-
The financial statement items of the consolidated insurance      tively estimated, from the assets allocated to represent them.
undertakings are presented under the corresponding cap-          Commitments are discounted using a rate not exceeding the
tions in the balance sheet, income statement and statement       rate of the the contract concerned, using statutory mortality
of off-balance sheet items, except for the following specific    tables or experience tables if these are more conservative.
items:                                                           A general management reserve is established for all future
                                                                 management charges of the contracts, not covered by pre-
t Investments of insurance undertakings                          mium loadings or investment income loading.
The investments of the insurance undertakings comprise           When remuneration exceeding the guaranteed minimum
property investments, investments representing unit-linked       rate, based on the results of technical and financial man-
contracts and various other investments.                         agement, accrues to policyholders and this has not been
Property investments appear in the balance sheet at their        distributed to the policyholders during the period, the amount
acquisition cost net of purchase expenses, with the addi-        of such is shown in the policyholders’ surplus reserve.
tion of the cost of improvements and of certain taxes. The       The reserve for claims payable includes claims and capital
properties are depreciated over their estimated period of        that are due but not yet paid at the end of the period.
economic use. The estimated value of the properties is based     The mathematical reserves for unit-linked contracts are meas-
on independent experts’ reports. A provision for impairment      ured on the basis of the assets backing such contracts.
is established in the event of lasting impairment of the prop-
erties.                                                          ■ Disability, accident and health insurance
Investments covering linked liabilities are marked to market     A reserve is established for increasing risks in order to cover
at the period-end by adjusting technical reserves.               timing differences between the period of activation of the
Equities and other variable-yield securities are recognised      cover and its funding by insurance premiums.
at their purchase price excluding expenses. A provision for      The measurement of reserves for claims is based on the
impairment is established in the event of lasting impairment     estimated value of foreseeable expenditure net of any recov-
of the value of the securities determined by reference to the    eries receivable.
estimated recoverable amount.




                                                                                                Caisse des Dépôts | Financial Report 2005   | 17 |
Consolidated Financial Statements




               ■ Non-life insurance                                           The financial statement items of the consolidated services
               Non-life technical reserves comprise reserves for unearned     companies are presented under the corresponding captions
               premiums (share of premiums written relating to subsequent     of the balance sheet, income statement and statement of
               periods) and reserves for claims payable.                      off-balance sheet items.
                                                                              A specific caption ‘Net income from other activities’ has
               t Gross margin on insurance activities                         been created, which mainly comprises revenue and other
               The gross margin on insurance activities is derived from       operating income, less purchases consumed.
               earned premiums and the costs of benefits including changes
               in technical reserves, and net investment income.

               VI - Main presentation and valuation
               rules – services and property arms

               The main accounting principles and valuation rules specific
               to the service activities are maintained in the consolidated
               financial statements of the Caisse des Dépôts group.




| 18 |   Caisse des Dépôts | Financial Report 2005
Note 1 - Interbank and similar transactions:
         loans and advances to credit institutions
(in millions of euros)                                                                                                       31.12.2005              31.12.2004
                                (1)
Ordinary accounts in debit                                                                                                         9,757                  10,353
Savings funds current accounts                                                                                                       134                      20
Securities received under resale agreements with actual delivery                                                                                              80
Accrued interest                                                                                                                       41                     23
Loans and advances to credit institutions repayable on demand                                                                      9,932                  10,476
                               (2)
Term accounts and loans                                                                                                            1,006                    1,839
Securities received under resale agreements with actual delivery                                                                     347                      135
Subordinated loans                                                                                                                    24
Doubtful loans and advances (3)                                                                                                      153                        10
Impairment (3)                                                                                                                      (153)                      (10)
Accrued interest                                                                                                                       9                         8
Loans and advances to credit institutions with agreed maturity dates                                                               1,386                    1,982
Loans and advances to credit institutions                                                                                         11,318                  12,458
Of which loans and advances of entities with banking and financial activities                                                     10,795                  12,069
Of which loans and advances of other entities                                                                                        523                     389


The Central Sector accounts for virtually all of this item.

(1) The balance of loans and advances to credit institutions fell by €544 million mainly because of the reduction in the outstandings of accounts opened with
CNCE (€1,557 million), which was partially offset by a rise of €722 million in the balances of the accounts opened with ICIB.
(2) The term accounts and loans outstandings fell by €833 million by reason in particular of the reduction in ICIB macro-loans (reduction of €647 million in
the balance, which amounted to €448 million at 31 December 2005) and the repayment of the CNE reserve and guarantee Fund advance of €225 million as
a consequence of the takeover of the participating loans by La Banque Postale.
(3) With respect to the Central Sector, reclassification under cash credits of the receivables associated with the Sofaris participating interest (these receivables
are fully written down) totalling €153 million.




                                                                                                                              Caisse des Dépôts | Financial Report 2005   | 19 |
Consolidated Financial Statements




               Note 2 - Customer transactions
               (in millions of euros)                                                                                                            31.12.2005                      31.12.2004
                                        (1)
               Ordinary overdrafts                                                                                                                         843                             665
               Doubtful loans and advances                                                                                                                    7                               8
               Impairment                                                                                                                                    (7)                             (7)
               Ordinary overdrafts                                                                                                                         843                             666
               Loans to financial-sector customers                                                                                                           2                                2
               Cash credits (2)                                                                                                                          7,180                              356
               Investment credits                                                                                                                          376                              337
               Housing credits                                                                                                                             369                              114
               Other credits                                                                                                                               587                            1,058
               Subordinated loans                                                                                                                           36                               51
               Leasing transactions and similar                                                                                                             72                               74
               Doubtful loans and advances                                                                                                                 154                              153
               Impairment                                                                                                                                 (134)                            (119)
               Accrued interest                                                                                                                             44                               58
               Other loans and advances to customers and leasing transactions and similar                                                                8,686                            2,084
               Customer transactions                                                                                                                     9,529                            2,750
               Of which loans and advances repayable on demand                                                                                             843                              666
               Of which loans and advances with agreed maturity dates                                                                                    8,686                            2,084

               The Central Sector accounts for virtually all of this item.

               (1) The Fondation de France outstandings, up €94 million, constitute the main annual change in this item.
               (2) The annual increase in cash credits resuls from a drawdown by Acoss of €7 billion from its overdraft facility. The total authorised credit for this counterparty was
               €13 billion at 31 December 2005, compared with €25 billion at 31 December 2004.




| 20 |   Caisse des Dépôts | Financial Report 2005
Note 3 - Transactions in trading, available-for-sale,
         held-to-maturity and portfolio securities
a. Analysis by nature and type of portfolio

                                                              31.12.2005                                                         31.12.2004
                                    Trading      Available-     Held-to-     Portfolio     Total       Trading      Available-     Held-to-     Portfolio   Total
                                   securities     for-sale      maturity    securities                securities     for-sale      maturity    securities
(in millions of euros)                           securities    securities                                           securities    securities

Government securities                  5,270           362        4,266                     9,898           4,503         467        4,886                   9,856
Treasury certificates                  2,918                         54                     2,972           3,318         281                                3,599
Loaned securities                      5,852                                                5,852           5,010                                            5,010
Treasury bills and
similar securities                   14,040            362        4,320                    18,722       12,831            748        4,886                  18,465
Debentures                             1,098        1,320         5,507                     7,925             50       1,048         6,666                   7,764
Subordinated securities
Asset-backed securities                               665             9                       674                        689            64                     753
Negotiable debt instruments              920       36,998         1,462                    39,380                     36,419         1,407                  37,826
Loaned securities                                     569         3,088                     3,657                                      473                     473
Debentures and other
fixed-income securities                2,018       39,552        10,066                    51,636             50      38,156         8,610                  46,816
Equities                                            2,003                     10,230       12,233                      1,901                      9,391     11,292
UCITS                                      18       1,941                                   1,959             18       2,385                                 2,403
Loaned securities                                       2                                       2                          2                                     2
Equities and other
variable-yield securities                  18       3,946                     10,230       14,194             18       4,288                      9,391     13,697
Total by type
of portfolio (1)                     16,076        43,860        14,386       10,230       84,552       12,899        43,192        13,496        9,391     78,978

(1) The portfolios at 31 December 2005 mainly (i.e. an amount of €82 billion) concern the Central Sector.




                                                                                                                        Caisse des Dépôts | Financial Report 2005    | 21 |
                       Statements
Consolidated Financial Statement




         Note 3 - Continued
         b. Additional information
                                                                       31.12.2005                                                         31.12.2004
                                              Trading     Available-     Held-to-     Portfolio      Total       Trading     Available-     Held-to-     Portfolio      Total
                                             securities    for-sale      maturity    securities                 securities    for-sale      maturity    securities
         (in millions of euros)                           securities    securities                                           securities    securities

          Treasury bills and similar securities
         Gross value (1)                       14,038          348         4,171                    18,557        12,830          721         4,725                    18,276
         Premiums/discounts                                      7            34                        41                         16            39                        55
         Accrued interest                             2          7           115                       124               1         11           122                       134
         Impairment
            - net carrying value               14,040          362         4,320                    18,722        12,831          748         4,886                    18,465
            - market value of trading
            and available-for-sale
            securities                         14,040          381                                                12,831          770
          Debentures and other fixed-income securities
         Gross value (1)                        2,018      39,383          9,749                    51,150             50     38,020          8,341                    46,411
         Premiums/discounts                                     81            67                       148                        50             30                        80
         Accrued interest                                     101            250                       351                        91            239                       330
         Impairment                                            (13)                                    (13)                        (5)                                     (5)
            - net carrying value                2,018      39,552         10,066                    51,636             50     38,156          8,610                    46,816
                            of which
                  quoted securities             2,018      38,455          9,082                    49,555             50     37,043          8,094                    45,187
            - market value of
            trading and available-for-
            securities                          2,018      39,539                                                      50     38,182
          Equities and other variable-yield securities
         Gross value                                18       3,996                    11,513        15,527             18       4,415                    10,864        15,297
         Accrued income                                                                    25           25                                                    52           52
         Impairment                                             (50)                   (1,308)      (1,358)                      (127)                    (1,525)      (1,652)
            - net book value                        18       3,946                    10,230        14,194             18       4,288                      9,391       13,697
                             of which
                   quoted securities                14       2,514                      9,164       11,692             18       2,611                      8,562       11,191
            - market value
            (trading and available-
            for-sale) or value
            in use (portfolio) (2)                  18       5,182                    14,877                           18       4,640                    10,510

         (1) For these classes of security, the gross values indicated in the “Available-for-sale securities” and “Held-to-maturity securities” columns correspond to the
         redemption value.
         (2) The determination of the values in use of the portfolio securities is based on the use of moving averages for quoted securities, adjusted where appropriate by
         a specific value in use when this better reflects the economic value.




| 22 |     Caisse des Dépôts | Financial Report 2005
Note 4 - Investments of insurance undertakings
(in millions of euros)                                                                                                          31.12.2005             31.12.2004
Investments representing unit-linked contracts                                                                                       13,897                  6,858
Other investments
Land and buildings                                                                                                                    1,288                  1,330
Investments in affiliated undertakings and participating interests                                                                       73                     19
Other investments                                                                                                                    73,295                 65,731
Investments of insurance undertakings                                                                                                88,553                 73,938

The CNP Assurances group is the sole contributor to this item. “Other investments” mainly comprises equities and equity UCITS,
debt securities and bond UCITS, respectively €9.7 billion and €55.4 billion (amounts at consolidation rate and excluding accrued
interest) at 31 December 2005.



Note 5a - Non-consolidated participating interests: movements
                                                                         31.12.2004        Acquisitions/       Disposals/           Other            31.12.2005
(in millions of euros)                                                                       charges           recoveries         movements
 Long-term equity interests
Gross value (1) (2)                                                              2,131                257                (53)                 74            2,409
Impairment                                                                        (171)                (10)               28                   1             (152)
Net carrying value                                                               1,960                247                (25)                 75            2,257
 Advances
Gross value (3)                                                                    487                 81                (72)              (145)               351
Impairment                                                                        (187)                 (8)                3                163                 (29)
Net carrying value                                                                 300                 73                (69)                18                322

Participating interests                                                          2,260                320                (94)                 93            2,579
(1) Including further acquisitions of Dexia securities, by the Central Sector, of €143 million and of Compagnie Nationale du Rhône securities totalling
€29 million.
(2) “Other movements”: mainly the effect of CDC Kinéon ceasing to be consolidated at 1 January 2005.
(3) The “Other movements” column includes, both with regard to gross value and impairment, the impact of the reclassification of the Sofaris item under cash credits
(cf. Note 1). The amount concerned is €153 million (advances and impairment show the same amount).




Note 5b - Principal non-consolidated participating interests
                                                                          Carrying           Advances          Impairment         31.12.2005         Share of
                                                                            value                                                                    capital %
(in millions of euros)                                                  of securities
 Companies in which the group holds a participating interest > €50 million (net carrying value)
Dexia*                                                                           1,087                                                   1,087                6.9
Areva*                                                                             360                                                     360                3.6
Compagnie Nationale du Rhône                                                       235                   1                                 236               29.4
CDC Kinéon (1)                                                                     100                                   (26)               74              100
Sicovam Holding                                                                     51                                                      51                8.8
Other non-consolidated interests                                                   415                                 (100)                315
Advances relating to non-consolidated interests                                                       334                (18)               316
SEMs and SAIEMs                                                                    161                 16                (37)               140
Total participating interests and advances                                       2,409                351              (181)             2,579

* Quoted participating interests.
(1) As CDC Kinéon no longer had any activity, it ceased to be consolidated at 1 January 2005.




                                                                                                                       Caisse des Dépôts | Financial Report 2005       | 23 |
Consolidated Financial Statements




               Note 6 - Participating interests accounted for by the equity method
                                                                                              31.12.2005                                   31.12.2004
                                                                                   Equity in net        Of which share of       Equity in net        Of which share of
                                                                                     assets              profit of interests      assets              profit of interests
                                                                                                         accounted for by                             accounted for by
               (in millions of euros)                                                                   the equity method                            the equity method

               CNCE group                                                                   4,184                      416               3,775                       237
               OSEO BDPME                                                                     475                       27                 437                        22
               Other (1)                                                                      118                        7                 110                         5
               Insurance arm (CNP Assurances)                                                  73                        8                  38                         5
               Property and Services arms                                                      42                        3                  37                         2
               Participating interests accounted for
               by the equity method                                                         4,892                      461               4,397                       271

               (1) Mainly Logistis, Sogeposte and entities in the AIH PBW group.




               Note 7 - Tangible and intangible fixed assets
               a. Breakdown
                                                                                              31.12.2005                                   31.12.2004
                                                                               Gross          Amortisation,        Net          Gross       Amortisation,       Net
                                                                              amount         depreciation and     amount       amount     depreciation and     amount
               (in millions of euros)                                                          impairment                                   impairment

               Operating fixed assets                                               3,021          (1,428)           1,593       2,705          (1,304)           1,401
               Investment fixed assets
                - fixed assets in the course of construction                          181                              181         188                              188
                - land and buildings                                                6,596          (2,350)           4,246       6,692          (2,197)           4,495
                - forests and land reserves                                            19                               19          21                               21
                - companies owning investment properties                              684             (21)             663         554             (22)             532

               Tangible fixed assets                                               10,501          (3,799)           6,702      10,160          (3,523)           6,637
               Purchased goodwill                                                     259              (67)             192         75              (38)              37
               Concessions, licences and patents                                      485            (378)              107        419            (319)              100
               Other intangible fixed assets                                          144              (23)             121        124              (22)             102
               Intangible fixed assets                                                888           (468)               420        618           (379)               239
               Tangible and intangible fixed assets                                11,389          (4,267)           7,122      10,778          (3,902)           6,876
               Of which assets of entities with
               banking and financial activities                                     2,898            (861)           2,037       2,753            (848)           1,905
               Of which assets of other entities                                    8,491          (3,406)           5,085       8,025          (3,054)           4,971


               At 1 January 2005, the Caisse des Dépôts group adopted CRC Regulation 2002-10 relating to the amortisation, depreciation and
               impairment of assets.




| 24 |   Caisse des Dépôts | Financial Report 2005
b. Movements
                                                                31.12.2004       Acquisitions/       Disposals/           Other            31.12.2005
(in millions of euros)                                                             charges           recoveries         movements
Gross operating tangible fixed assets                                  2,705                255               (120)               181              3,021
Depreciation and impairment                                           (1,304)              (151)                99                 (72)           (1,428)
Operating tangible fixed assets (1)                                    1,401                104                (21)               109             1,593
Gross investment tangible fixed assets                                 7,455                470               (211)              (234)             7,480
Depreciation and impairment                                           (2,219)              (169)                42                 (25)           (2,371)
Investment tangible fixed assets (2)                                   5,236                301               (169)              (259)            5,109
Gross intangible fixed assets                                             618               115                 (11)              166                888
Amortisation, depreciation and impairment                                (379)               (64)                 6               (31)              (468)
Intangible fixed assets (3)                                              239                  51                 (5)              135               420
Tangible and intangible fixed assets                                   6,876                456               (195)               (15)            7,122
(1) The Services and Property arms represent most of the movements.
(2) The investments mainly concern the Central Sector (€224 million) and the Property arm (Icade €70 million and SNI €176 million).
Disposals totalled €211 million, of which €107 million for the Central Sector and €104 million for the Property arm.
The other movements mainly concern the SNI in respect of the final allocation of the goodwill recognised in 2004 –€90 million and from the adjustments
relating to the acquisition of Foncière des Pimonts by Icade.
(3) Intangible fixed assets (gross value) rose by €270 million, a change attributable to the movements in scope of CNP Assurances (€168 million –gross
value– of portfolios of contracts in connection with the acquisition in 2005 of Fineco Vita and €18 million of associated amortisation).




Note 8 - Goodwill
(in millions of euros)                                                                                                 31.12.2005           31.12.2004
Goodwill
Goodwill (gross) at 1 January                                                                                                 573                 1,101
Goodwill arising from acquisitions for the year and other movements (1)                                                       195                  (528)
Total goodwill (gross)                                                                                                        768                    573
Amortisation at 1 January                                                                                                    (183)                  (370)
Amortisation charges                                                                                                           (38)                   (35)
Other movements                                                                                                                 30                   222
Total amortisation                                                                                                           (191)                  (183)
                         (2)
Total goodwill (net)                                                                                                          577                    390
Negative goodwill (net)
Negative goodwill (net) at 1 January                                                                                           16                     11
Negative goodwill written off to profit                                                                                         (8)                    (8)
Other movements                                                                                                                                       13
Total negative goodwill (net)                                                                                                    8                    16
Net impact on profit and loss                                                                                                 (30)                   (27)

(1) The 2005 change is mainly the result of:
- the acquisition by CNP Assurances of Fineco Vita (€134 million),
- the buy-out of the minority interests of Capri by Icade (€25 million),
- a negative translation difference in respect of Caixa Seguros/CNP Assurances of €44 million owing to the change in accounting policy on recognition of
goodwill, which is now recorded in local currency.
(2) The net goodwill mainly concerns the CNP Assurances group (€292 million mainly relating to Caixa Seguros and Fineco Vita), Icade group (€95 million),
Transdev group (€67 million) and Compagnie des Alpes group (€90 million).




                                                                                                                       Caisse des Dépôts | Financial Report 2005   | 25 |
Consolidated Financial Statements




               Note 9 - Prepayments and accrued income and other assets
               (in millions of euros)                                                                                              31.12.2005                31.12.2004
               Deferred charges                                                                                                                                     22
               Prepaid expenses                                                                                                               64                    52
               Accrued income                                                                                                                 44                    33
               Forward financial instrument and foreign currency adjustment accounts                                                          12                   190
               Other prepayments and accrued income                                                                                           20                    20
               Deferred tax assets (note 34)                                                                                                  40                    23
               Prepayments and accrued income                                                                                               180                    340
               Sundry debtors                                                                                                             2,576                  2,400
               Settlement accounts relating to transactions in securities                                                                     10                      6
               Stocks and similar                                                                                                           262                    277
               Impairment                                                                                                                    (83)                   (83)
               Other assets                                                                                                               2,765                  2,600
               Of which other assets of entities with banking and financial activities                                                      405                    398
               Of which other assets of other entities                                                                                    2,360                  2,202
               Reinsurers’ share of technical reserves                                                                                    2,272                  1,881
               Other insurance assets                                                                                                     1,062                    954
               Other insurance assets and reinsurers’ share of technical reserves                                                         3,334                  2,835
               Prepayments and accrued income and other assets                                                                            6,279                  5,775



               Note 10 - Interbank and similar transactions:
                         amounts owed to credit institutions
               (in millions of euros)                                                                                              31.12.2005                31.12.2004
                                        (1)
               Ordinary deposits                                                                                                        16,527                   6,857
               Accrued interest                                                                                                             17                      20
               Amounts owed to credit institutions repayable on demand                                                                  16,544                   6,877
               Term accounts and loans                                                                                                   3,017                   3,084
               Securities given under repurchase agreements with actual delivery                                                        17,158                  17,626
               Accrued interest                                                                                                            111                     114
               Amounts owed to credit institutions with agreed maturity dates                                                           20,286                  20,824
               Amounts owed to credit institutions                                                                                      36,830                  27,701

               (1) The increase in outstandings is attributable to the Central Sector, which saw a rise in the amounts owed to CNCE and La Banque Postale.




| 26 |   Caisse des Dépôts | Financial Report 2005
Note 11 - Customer transactions
(in millions of euros)                                                                                                    31.12.2005              31.12.2004
                         (1)
Ordinary deposits                                                                                                               32,112                 28,574
Accrued interest                                                                                                                     1                      3
Ordinary deposit liabilities to customers                                                                                       32,113                 28,577
Loans from financial sector customers                                                                                              197                    173
Escrow accounts                                                                                                                  2,916                  2,858
Term deposits (2)                                                                                                                9,478                 15,705
Securities given under repurchase agreements with actual delivery                                                                  550                     80
Other sums owed to customers                                                                                                                                3
Accrued interest                                                                                                                    494                   505
Other amounts owed to customers                                                                                                 13,635                 19,324
Customer transactions                                                                                                           45,748                 47,901

The Central Sector accounts for most of the customer transactions.

(1) Ordinary deposit balances rose by €3,536 million, owing mainly to the rise in notary deposit outstandings.
(2) Term deposits fell considerably (€6,227 million), following the reduction in the deposit of the FRR (Pension Reserve Fund) of €5,813 million.



Note 12a - Debts evidenced by certificates
(in millions of euros)                                                                                                    31.12.2005              31.12.2004
                                                                       (1)
Medium-term notes and other negotiable debt instruments                                                                          4,494                      3,318
Accrued interest                                                                                                                     8                          9
Interbank market securities and negotiable debt instruments                                                                      4,502                      3,327
Debenture loans and similar                                                                                                         206                      233
Accrued interest                                                                                                                      1                        3
Debenture loans and similar                                                                                                         207                      236
Debts evidenced by certificates                                                                                                  4,709                      3,563

(1) The rise of €1,176 million seen over the period is explained by the increase in outstandings of certificates of deposit issued by the Central Sector.
The increase in the balance amounted to €1,212 million over the year.




                                                                                                                           Caisse des Dépôts | Financial Report 2005   | 27 |
Consolidated Financial Statements




               Note 12 b - Subordinated debts
               (in millions of euros)                  Issue date    Maturity date                    Reference rate     31.12.2005
                Subordinated securities with a fixed maturity date
               CNP Assurances group
                                                          May-99           May-09                             4.625%           172
                                                          April-01                                                              64
                                                          May-01               From                 5.75% until 2011            21
                                                          July-01      04.11.2011                 and Euribor +1.57%            21
                                                     December-01     and until 2021                  from 07.11.2011            64
                                                      February-02                                                               43
                                                          April-02                                                             107
                                                                               From                  5.25% until 2013
                                                          April-03     05.16.2013                    and Euribor +2%           128
                                                                     and until 2023                  from 07.11.2013
                                                                               From                4.7825% until 2013
                                                          June-03      06.24.2013                    and Euribor +2%            85
                                                                     and until 2023                  from 06.24.2013
                                                            Other                                                               19
               Total subordinated securities with a fixed maturity date                                                        724
                Undated subordinated securities
                CNP Assurances group
                                                                                                    4.93% until 2016
                                                     November-04          Indefinite              and Euribor +1.60%            38
                                                                                                     from 11.15.2016
                                                          June-04                                     Tec 10 +10 bps,          107
                                                                          Perpetual
                                                     September-04                                           cap at 9%           21
                                                                                               3-month Euribor +0.70%
                                                     November-04          Indefinite    until 2016 and 3-month Euribor          40
                                                                                              +1.60% from 11.15.2016
                                                                                                     6.50% until 2008
                                                        March-05          Perpetual                  then 3% +22.5%             96
                                                                                              times 10-year EUR CMS
                                                                                                 6.25% until 2009 then
                                                                                          4 times (10-year EUR CMS –
                                                        March-05          Perpetual                                             11
                                                                                         2-year EUR CMS): cap at 9%
                                                                                                    and floor at 2.75%
                                                                                             7% until 2009 then 100%
                                                                                       of (10-year EUR CMS +0.30%);
                                                          June-05         Perpetual                                             32
                                                                                       cap at 10 times (10-year CMS –
                                                                                              2-year CMS); floor at 2%
                                                            Other         Perpetual                                             20
               Total undated subordinated securities                                                                           365
               Other term loans                                                                                                 80
               Mutual guarantee deposits                                                                                         5
               Total subordinated debts                                                                                      1,174




| 28 |   Caisse des Dépôts | Financial Report 2005
Note 13 - Technical reserves of insurance undertakings
(in millions of euros)                                                                                                       31.12.2005              31.12.2004
Technical reserves for unit-linked contracts                                                                                      13,896                     6,858
Other technical reserves:
- technical reserves - life                                                                                                       68,715                   62,602
- technical reserves - non-life                                                                                                    2,058                    1,942
Technical reserves of insurance undertakings                                                                                      84,669                   71,402


These are the technical reserves of the CNP Assurances group, proportionately consolidated at the rate of 42.73% in the
balance sheet of the Caisse dse Dépôts group at 31 December 2005.



Note 14 - Accruals and deferred income and other liabilities
(in millions of euros)                                                                                                       31.12.2005              31.12.2004
Deferred income                                                                                                                        212                     245
Accrued expenses                                                                                                                        49                      48
Forward financial instrument and currency adjustment accounts                                                                           27
Other accruals and deferred income                                                                                                      39                      36
Deferred tax liabilities (Note 34)                                                                                                     273                     367
Accruals and deferred income                                                                                                           600                     696
Premiums on written options                                                                                                            1                        2
Liabilities for securities (1)                                                                                                    17,720                   13,913
Sundry creditors                                                                                                                   3,959                    3,301
Liabilities arising from direct insurance transactions                                                                               614                      530
Other insurance liabilities                                                                                                          187                        2
Other liabilities                                                                                                                 22,481                   17,748
Of which other liabilities of entities with banking and financial activities                                                      16,218                   13,588
Of which other liabilities of other entities                                                                                       6,263                    4,160
Accruals and deferred income and other liablities                                                                                 23,081                   18,444

(1) The increase in this item is mainly accounted for by borrowings of securities from the savings funds, up by nearly €2,257 million to €15,139 million
at 31 December 2005. The CNP Assurances group contributed in identical proportions to this change (rise of €1,585 million over one year).




Note 15 - Provisions
                                                                    31.12.2004           Charges           Recoveries            Other              31.12.2005
(in millions of euros)                                                                                      reprises           movements
Provisions for pensions and
other personnel-related expenses (1)                                          237                   92                (46)                   (7)              276
Provisions for potential property liabilities (2)                             139                   16                (12)               (103)                 40
Provisions for counterparty risks                                             161                   49                (36)                 (14)               160
Other provisions                                                              213                   55                (84)                   (8)              176
Provisions                                                                    750                 212               (178)               (132)                 652

(1) Provisions for pensions and other personnel-related charges. Movements for the period mainly concerned the Central Sector. The new framework agree-
ment, covering the period 2006-2008, was implemented, giving rise to a transfer to provisions of €69 million and a recovery of the provision established in
respect of the previous agreement of €26 million.
(2) Provisions for potential property liabilities. In connection with the application of CRC 2002.10, the provisions for major repairs are now deducted from the car-
rying amount of the related assets using the components approach. The “Other movements” reflect this change in accounting method (€17 million for the
Central Sector, €55 million for SNI and €12 million for the CNP Assurances group).




                                                                                                                              Caisse des Dépôts | Financial Report 2005   | 29 |
Consolidated Financial Statements




         Note 16 - Changes in the Fund for general banking risks, minority
                   interests and consolidated equity attributable to the group
                                                    Fund for        Minority        Minority       Minority      Retained      Translation       Profit       Equity        Total
                                                    general       interests in     interests      interests      earnings        reserve      attributable attributable consolidated
                                                    banking         reserves        in profit     in equity     (excluding                   to the group to the group     equity
                                                     risks (1)     (excluding                    (excluding       FGBR)                                    (excluding
         (in millions of euros)                                      FGBR)                         FGBR)                                                      FGBR)

         Consolidated equity
         at 31 December 2004                               610         1,367            166          1,533         12,916            (103)         1,912        14,725         16,868
         Appropriation of 2004 profit                                    166            (166)                       1,912                         (1,912)
         2004 dividend paid in 2005 (2)                                   (85)                          (85)         (502)                                         (502)          (587)
         Other changes (including effect of
         changes in accounting methods) (3)                                33                           33            (107)             58                          (49)           (16)
         2005 profit                                                                    180            180                                         2,087          2,087          2,267
         Consolidated equity
         at 31 December 2005                               610         1,481            180          1,661         14,219             (45)         2,087        16,261         18,532
         (1) This is the Fund for general banking risks of companies that are fully or proportionately consolidated.
         (2) The dividends distributed in 2005 in respect of the 2004 financial year represent 33% of the consolidated profit attributable to the group after deduction of the amount of
         the gain already paid to the French Treasury (Trésor) of €405 million at 31 December 2004, i.e. a base of €1,507 million. The sum actually paid to the State in 2005 amounted to
         €472 million, i.e. €502 million in respect of the dividend distributed, reduced by the debt waiver granted to Sagitrans at the State’s request (€30 million).
         (3) The other changes are the result of:
         - for the minority interests, changes of scope in the CNP Assurances group (€87 million in respect of the acquisition of 57.5% of Fineco Vita, which was fully consolidated in
         CNP Assurances group), in the Icade group (–€47 million in respect of the buy-out of the minority interests in Pimonts and –€31 million in respect of the buy-out of the minority
         interests in Capri) and changes in translation differences (including €20 million in respect of CNP Assurances’ Brazilian subsidiary);
         - for the reserves attributable to the group, the effect of changes in accounting methods recognised in equity over the period (in particular the adoption of CRC Regulation
         No. 2002-10 relating to the amortisation, depreciation and impairment of assets (–€73 million), of CRC Regulation No. 2002-03 relating to credit risk (–€22 million), and the
         application of CNC 2003-R1 relating to benefits to personnel (–€51 million) and movements in investment grants (€12 million);
         - the positive change in the translation reserve concerns the American subsidiaries of the CNCE group (€64 million) and also incorporates the effects of the recognition of good-
         will in the functional currency (–€58 million) (adjustment to opening goodwill in respect of Caixa Seguros).




| 30 |     Caisse des Dépôts | Financial Report 2005
Note 17a - Consolidated balance sheet items by period to maturity
                                                         3 months   3 months         1 year        More than      Eliminations    Total at
(in millions of euros)                                    or less   to 1 year      to 5 years       5 years                      31.12.2005

 Assets
Loans and advances to credit institutions                  11,471         486              10                6          (655)      11,318
Loans and advances to customers                             8,117         182            450             852             (72)       9,529
Portfolios of securities, excluding trading securities     23,422     15,569          10,094           5,216                       54,301
Of which treasury bills and similar securities                 52      2,391           1,773             467                        4,683
Of which debentures and other fixed-income securities      23,370     13,178           8,321           4,749                       49,618

 Liabilities
Amounts owed to credit institutions                        34,236         499          1,262           1,433            (600)      36,830
of which securities under repurchase agreements
with actual delivery (including accrued interest)          17,213                                                                  17,213
Amounts owed to customers                                  45,916          46            127                 96         (437)      45,748
of which securities under repurchase agreements
with actual delivery (including accrued interest)             620                                                         (69)        551
Debts evidenced by certificates                             1,973       2,519              88                            129        4,709
Of which debenture loans                                                                   78                            129          207
Of which other debts evidenced by certificates              1,973       2,519              10                                       4,502




Note 17b - Balance sheet items broken down by currency
                                                           Euro       US            Pounds           Other        Eliminations    Total at
(in millions of euros)                                               Dollars        sterling                                     31.12.2005

 Assets
Loans and advances to credit institutions                  11,812          87              14                60         (655)      11,318
Loans and advances to customers                             9,595                              6                         (72)       9,529
Portfolios of securities, excluding trading securities     52,891              8                       1,402                       54,301
Of which treasury bills and similar securities              4,683                                                                   4,683
Of which debentures and other fixed-income securities      48,208              8                       1,402                       49,618

 Liabilities
Amounts owed to credit institutions                        36,838         168            152             272            (600)      36,830
of which securities under repurchase agreements
with actual delivery (including accrued interest)          17,213                                                                  17,213
Amounts owed to customers                                  45,930          85              15            155            (437)      45,748
of which securities under repurchase agreements
with actual delivery (including accrued interest)             620                                                         (69)        551
Debts evidenced by certificates                             4,029         370                  9         172             129        4,709
Of which debenture loans                                       69                              9                         129          207
Of which other debts evidenced by certificates              3,960         370                            172                        4,502




                                                                                                Caisse des Dépôts | Financial Report 2005     | 31 |
Consolidated Financial Statements




               Note 18a - Off-balance sheet commitments relating to spot or
                          forward foreign exchange and foreign currency lending
                          and borrowing transactions
               (in millions of euros)                                                                           31.12.2005            31.12.2004
               Spot foreign exchange transactions
               Euros purchased not yet received                                                                           6                       2
               Foreign currencies purchased not yet received                                                              3                      12
               Euros sold not yet delivered                                                                               3                      12
               Foreign currencies sold not yet delivered                                                                  6                       2
               Forward foreign exchange transactions
               Euros receivable against foreign currencies
               - euros receivable                                                                                     2,999                2,477
               - foreign currencies to be delivered                                                                   3,038                2,366
               Foreign currencies receivable against deliverable euros
               - foreign currencies receivable                                                                         940                   973
               - euros to be delivered                                                                                 880                 1,051
               Unaccrued premiums/discounts
               Receivable                                                                                               11                       12
               Payable                                                                                                   2




               Note 18b - Forward financial instruments and options
                                                                     31.12.2005                                 31.12.2004
                                                           Trading          Treasury/hedging          Trading            Treasury/hedging
                                                     Purchase/   Sale/     Purchase/   Sale/    Purchase/   Sale/       Purchase/        Sale/
               (in millions of euros)                borrowing   loan      borrowing   loan     borrowing   loan        borrowing        loan

                Forward financial instruments
               Organised markets
               Interest-rate contracts                    132        132                              92         92
               Foreign exchange contracts                                                                                                    15
               Other contracts                             96         19                                         74
               Over-the-counter markets
               Interest-rate swaps                     14,642                26,853               40,183                  33,481

                Options
               Over-the-counter markets
               Interest-rate options                                              1
               Caps and floors                            341        211     10,901       305        829        698           8,387         305
               Other options                                                    280        10                                   260




| 32 |   Caisse des Dépôts | Financial Report 2005
Note 18c - Forward financial instruments and options by term to
           maturity
                                                      3 months     3 months      1 year     More than   Eliminations    Total at
(in millions of euros)                                 or less     to 1 year   to 5 years    5 years                   12.31.2005

 Forward financial instruments
Interest-rate contracts                                    264                                                              264
Interest-rate swaps                                     19,966       14,048       5,176        2,305                     41,495
Other contracts                                            115                                                              115

 Options
Interest-rate options                                                                 1                                       1
Caps and floors                                                       1,271      10,688           59          (260)      11,758
Other options                                                30                     260                                     290



Note 18d - Other off-balance sheet commitments
Guarantee given by Caisse des Dépôts to Ixis Corporate & Investment Bank (ICIB).

Under an agreement approved on 1 December 2000, Caisse des Dépôts issued to CDC Ixis, which became ICIB (Ixis
Corporate & Investment Bank), a joint and several guarantee. This guarantee relates to certain financial instruments that
enable ICIB to be refinanced (issuance transactions except for subordinated issues, and interbank and treasury transac-
tions), as well as to signature commitments. According to the terms of the agreement, ICIB may in turn, and subject to cer-
tain conditions, issue its own guarantee to certain of its subsidiaries.

The European Commission examined the terms of this agreement and the remuneration therefor in May 2003. In accor-
dance with the European Commission’s favourable decision, the ability to issue this guarantee for new transactions will cease
on 23 January 2007.
Since 1 April 2003, new balance sheet transactions with a maturity after 23 January 2017 have no longer been able to be
guaranteed and, from 23 January 2004, new off-balance sheet transactions with a maturity after 23 January 2017 will also
be excluded.

Since 30 June 2004, the date of disposal of CDC Ixis to the Caisse d’Epargne group, the Restructuring Agreement, with-
out calling into question the aforesaid mechanism, supplemented it with a counter-guarantee commitment from CNCE for
the benefit of Caisse des Dépôts in respect of its original commitment vis-à-vis CDC Ixis. Caisse des Dépôts retrocedes to
CNCE in this respect 50% of the remuneration received.
The guarantee originally issued by Caisse des Dépôts to CDC Ixis has enabled the latter institution’s credit rating to be
enhanced, laying the foundations for a transitional mechanism, authorised by the European Commission’s Competition
Directorate, that would progressively enable this subsidiary to dispense with the guarantee. The combination of the two
commitments (one given and the other received) must be considered from the viewpoint of the process of removing ICIB
from the activities directly managed by Caisse des Dépôts.

The application of the ordinary accounting rules, which would have led to the two reciprocal commitments being entered
under off-balance sheet items, was not adopted, on the grounds that these rules do not reflect the substance of this com-
plex and extraordinary transaction in aid of the removal of a former subsidiary and of the schedule extinguishment of Caisse
des Dépôts’ obligations.

From 1 April 2003, the annual consideration for the guarantee is the highest of the following three amounts:
a) an amount based on the ratio, calculated on a consolidated basis, between capital at risk and Tier 1 capital, within the
meaning of capital adequacy regulations,
b) the amount arrived at by multiplying the total outstandings of the financial instruments issued by ICIB by the difference,
on issue, between the remuneration of financial instruments of the same maturity issued by financial institutions enjoying the
same rating as CDC Ixis’ intrinsic rating (without the guarantee) and the remuneration of the said instruments by financial
institutions enjoying the same rating that ICIB guarantees,
c) €8 million.

For the 2005 financial year, remuneration owed by ICIB to Caisse des Dépôts amounted to €12.4 million.
The amount to be retroceded to CNCE was €6.2 million.

                                                                                                 Caisse des Dépôts | Financial Report 2005   | 33 |
Consolidated Financial Statements




               Note 19 - Credit risks
               a. Overall exposure to credit risk
                                                                                      Sound               Sound        Non-compromised Compromised           Gross
                                                                                      gross         restructured gross  doubtful gross doubtful gross    at 31.12.2005
               (in millions of euros)                                              outstandings        outstandings      outstandings   outstandings

               Loans and advances to credit institutions                             11,318                                      10             143           11,471
               Loans and advances to customers                                        9,506                                      50             114            9,670
               Available-for-sale and held-to-maturity portfolios                    54,314                                                                   54,314
               Financing and guarantee commitments given                             11,843                                                                   11,843
               Total                                                                 86,981                                      60             257           87,298



               b. Impairment and provisions for counterparty risks
               (in millions of euros)                                                  31.12.2004         Charges/       Recoveries        Other            31.12.2005
                                                                                                           transfer                       changes

               Loans and advances to credit institutions                                     (10)                               10             (153)             (153)
               Loans and advances to customers                                             (126)              (13)              13               (15)            (141)
               Available-for-sale and held-to-maturity portfolios
               (fixed-income securities)(1)                                                                     (1)                                                 (1)
               Impairment entered as a deduction
               from asset items                                                            (136)              (14)              23             (168)            (295)
               Of which sound gross outstandings                                (2)                             (1)                               1                 (2)
               Of which doubtful and compromised doubtful gross outstandings (134)                            (13)              23             (169)             (293)
               Execution risks on signature commitments                                     (95)              (46)              40                               (101)
               Provisions for country risks
               Provisions for industry risks
               Other provisions for counterparty risks                                      (66)              (17)                8                 16            (59)
               Provisions entered in liabilities                                           (161)              (63)              48                  16          (160)
               Total impairment and provisions
               for counterparty risk                                                       (297)              (77)              71             (152)            (455)

               (1) Excluding provisions for interest-rate risks.




               c. Credit risks - loans and advances to credit institutions
                                                                   Sound gross          Sound       Non-compromised Compromised         Impairment on        Total
                                                                   outstandings   restructured gross doubtful gross doubtful gross       outstandings    at 31.12.2005
               (in millions of euros)                                                outstandings     outstandings   outstandings

               Breakdown by geographical region
               France                                                11,181                                     10              143            (153)          11,181
               Europe (excluding France)                                133                                                                                      133
               Other                                                      4                                                                                        4
               Total by geographical region                          11,318                                     10              143            (153)          11,318




| 34 |   Caisse des Dépôts | Financial Report 2005
d. Credit risks - loans and advances to customers
                                      Sound gross          Sound       Non-compromised   Compromised       Impairment on         Total
                                      outstandings   restructured gross doubtful gross   doubtful gross     outstandings     at 31.12.2005
(in millions of euros)                                  oustandings      oustandings      oustandings

Breakdown by geographical region
France                                   9,474                                   50                79              (124)            9,479
Europe (excluding France)                                                                          35                (17)              18
Other                                        32                                                                                        32
Total by geographical region             9,506                                   50               114              (141)            9,529
Breakdown by sector
Sovereigns and central governments       7,070                                                                                      7,070
Local authorities                           55                                    4                  1                (1)              59
Other public sector                          6                                                                                          6
Insurance and reinsurance                   71                                                                                         71
Other financial institutions                29                                    2                                   (1)              30
Corporate                                  734                                   17                61               (74)              738
SMEs/SMIs and professionals                245                                    2                                   (2)             245
Private individuals                      1,296                                   25                52               (63)            1,310
Total by sector                          9,506                                   50               114              (141)            9,529



e. Credit risk - fixed-income securities
                                                            Sound    Non-compromised     Compromised        Impairment on        Total
                                                         outstandings doubtful gross     doubtful gross      outstandings    at 31.12.2005
(in millions of euros)                                                 outstandings       outstandings

Breakdown by currency
Euro                                                        52,904                                                    (1)         52,903
USD                                                              8                                                                     8
Other currencies                                             1,402                                                                 1,402
Total by currency                                           54,314                                                    (1)         54,313
Breakdown by rating
AAA                                                         19,492                                                                19,492
AA                                                          22,140                                                                22,140
A                                                           11,219                                                                11,219
BBB                                                          1,034                                                                 1,034
Unrated                                                        429                                                    (1)            428
Total by rating                                             54,314                                                    (1)         54,313




f. Credit risks - signature commitments
Virtually all of the signature commitments are granted to French entities.




                                                                                                          Caisse des Dépôts | Financial Report 2005   | 35 |
Consolidated Financial Statements




               Note 20 - Interest receivable and payable and similar income and
                         charges in respect of treasury and interbank transactions
                                                                                                                  31.12.2005               Pro forma                31.12.2004
               (in millions of euros)                                                                                                      31.12.2004
               Interest receivable on ordinary overdrafts                                                                   147                      122                     118
               Interest receivable on other loans and securities received under
               resale agreements                                                                                              29                      33                   1,089
               Interest receivable on securities received under resale
               agreements with actual delivery                                                                                 7                       5                     236
               Premium/discount income and other interest and similar income                                                  44                      30                     147
               Interest receivable and similar income from
               treasury and interbank transactions                                                                          227                      190                   1,590
               Interest payable on ordinary deposits                                                                       (114)                     (66)                    (91)
               Interest payable on loans and on securities given under
               repurchase agreements                                                                                       (109)                     (75)                (1,542)
               Interest payable on securities given under repurchase
               agreements with actual delivery                                                                             (266)                   (260)                    (353)
               Premium/discount charges and other interest and similar charges                                               (10)                    (15)                   (184)
               Interest payable and similar charges in respect of
               treasury and interbank transactions                                                                        (499)                    (416)                 (2,170)

               The Central Sector is the main contributor to this item.



               Note 21 - Interest receivable and payable and similar income and
                         charges in respect of customer transactions
                                                                                                                  31.12.2005               Pro forma                31.12.2004
               (in millions of euros)                                                                                                      31.12.2004
               Interest receivable on overdrafts (1)                                                                          50                     274                     280
               Interest receivable on commercial loans and advances and customer credits                                      93                      88                     741
               Interest receivable on other loans and on securities received under
               resale agreements                                                                                               3                        5                      76
               Interest receivable on securities received under resale
               agreements with actual delivery                                                                                                                                 74
               Interest receivable and similar income from leasing transactions                                                                                                29
               Other interest receivable and similar income                                                                    2                        4                      86
               Doubtful interest                                                                                               1                        2                      22
               Impairment charges in respect of doubtful interest                                                                                                              (4)
               Losses on uncollectable interest, writebacks of impairment
               in respect of interest, and recoveries                                                                                                                          (2)
               Interest receivable and similar income from customer transactions                                            149                      373                   1,302
               Interest payable on ordinary deposits                                                                       (323)                   (264)                    (270)
               Interest payable on escrow accounts                                                                           (35)                    (32)                     (32)
               Interest payable on term deposits, loans
               and securities given under repurchase agreements                                                            (240)                   (383)                    (428)
               Interest payable on securities given under repurchase
               agreements with actual delivery                                                                                (2)                      (2)                  (113)
               Other interest payable and similar charges                                                                     (2)                                           (100)
               Interest receivable and similar income from customer transactions                                          (602)                    (681)                   (943)


               The Central Sector is the main contributor to this item.
               (1) The reduction in this item compared with the 31 December 2004 pro forma arises from the fall in the remuneration received from Acoss, the refinancing (repayable
               on demand) of which now mainly passes through CADES.




| 36 |   Caisse des Dépôts | Financial Report 2005
Note 22 - Interest receivable and payable and similar
          income and charges in respect of debentures and
          other fixed-income securities
                                                                                                           31.12.2005           Pro forma             31.12.2004
(in millions of euros)                                                                                                          31.12.2004
Interest receivable and similar income on available-for-sale securities                                                 676             456                  591
Interest receivable and similar income on held-to-maturity securities                                                   744             787                  959
Other interest receivable and similar income                                                                                                                 424
Interest receivable and similar income in respect of debentures
and other fixed-income securities                                                                                 1,420               1,243                1,974
Interest payable on certificates of deposit and medium-term notes                                                       (95)             (23)                (259)
Interest payable and charges in respect of debenture loans                                                                               (11)                (187)
Other interest charges                                                                                                  (14)           (226)               (1,291)
Interest payable and similar charges in respect of debentures
and other fixed-income securities                                                                                   (109)              (260)               (1,737)
Net interest receivable and similar income in respect of debentures
and other fixed-income securities                                                                                 1,311                 983                  237

The Central Sector is the main contributor to this item.



Note 23 - Income from variable-yield securities
                                                                                                           31.12.2005           Pro forma             31.12.2004
(in millions of euros)                                                                                                          31.12.2004
Income from available-for-sale securities                                                                                59               42                   58
Income from portfolio securities (1)                                                                                    380              311                  307
Income from participating interests                                                                                      72               51                   83
Income from variable-yield securities                                                                                   511              404                  448

(1) The increase in the income from portfolio securities is mainly attributable to the Central Sector’s contribution.




Note 24 - Commission income and charges
                                                                        31.12.2005                            Pro forma                       31.12.2004
(in millions of euros)                                                                                        31.12.2004
                                                                 Income            Charges            Income              Charges      Income         Charges
Treasury and interbank transactions                                                                                                                              (1)
Customer transactions                                                      3                                       4                             22              (2)
Transactions in securities                                                                  (17)                               (12)              22            (21)
Transactions in forward financial instruments                                                                                                     8            (15)
Provision of financial services                                           46                (29)                 42            (27)             526          (111)
Foreign exchange transactions                                                                                                                     1
Other commissions                                                                                                                                 5             (3)
Commissions                                                               49               (46)                  46            (39)             584         (153)

The Private equity arm now accounts for most of the commission income via the remuneration for the activities of its
management companies. The charges mainly arise from the Central Sector.




                                                                                                                                 Caisse des Dépôts | Financial Report 2005   | 37 |
Consolidated Financial Statements




               Note 25 - Gains or losses on trading portfolio transactions
                                                                                           31.12.2005    Pro forma     31.12.2004
               (in millions of euros)                                                                    31.12.2004
               Gains/losses on transactions in trading securities                                  (1)           1           548
               Gains/losses on transactions in foreign exchange instruments                       15             7            43
               Gains/losses on transactions in forward financial instruments                     (31)          (36)          338
               Gains or losses on trading portfolio transactions                                 (17)          (28)          929




               Note 26 - Gains or losses on available-for-sale portfolio
                         transactions and similar
                                                                                           31.12.2005    Pro forma     31.12.2004
               (in millions of euros)                                                                    31.12.2004
               Gains/losses on disposal of available-for-sale securities                          84            78          (226)
               Other income and charges in respect of available-for-sale securities                (4)           (2)           (2)
               Impairment charges/recoveries in respect of available-for-sale securities          65           (14)             7
               Gains or losses on available-for-sale portfolio transactions                      145            62          (221)
               Gains/losses on disposal of portfolio securities                                  419           315           347
               Impairment charges/recoveries in respect of portfolio securities                  217           219           215
               Gains or losses on portfolio security transactions                                636           534           562
               Gains or losses on available-for-sale portfolio
               transactions and similar                                                          781           596           341




| 38 |   Caisse des Dépôts | Financial Report 2005
Note 27 - Other net banking operating income and charges
                                                                     31.12.2005                           Pro forma                            31.12.2004
(in millions of euros)                                                                                    31.12.2004
                                                              Income            Charges            Income            Charges            Income            Charges
Gains or losses on disposals of
investment property                                                    48                 (1)                93                                   97                (1)
Depreciation and impairment charges and
recoveries in respect of investment property                           22              (186)                 36             (142)                 37             (144)
Income and charges in respect of
investment property (1)                                              755               (115)               567              (108)               563              (106)
Total income and charges in respect of
investment property                                                  825              (302)                696              (250)               697              (251)
Income and charges in respect of property
development transactions                                               22               (13)                 44               (14)                45               (13)
Transfers to and recoveries from provisions in
respect of property development transactions                             7                (3)                  2                (2)                1                (2)
Total income and charges in respect of
property development transactions                                      29               (16)                 46               (16)                46              (15)
Public-interest programmes                                                              (80)                                  (64)                                 (64)
Transfers to and recoveries from provisions in
respect of public-interest programmes
Total income and charges in respect of
public-interest programmes                                                              (80)                                  (64)                                (64)
Charges reinvoiced, income retroceded and
charges transferred                                                    70                                    50                                   59                (1)
Other miscellaneous operating income
and expenses                                                         165               (246)               110              (174)               147              (222)
Transfers to and recoveries from provisions in
respect of other operating income and charges                            4                (8)                10               (11)                10               (12)
Total other operating income and
charges                                                              239              (254)                170              (185)               216              (235)
Other banking operating
income and charges                                                 1,093              (652)                912              (515)               959              (565)
Total net other banking operating
income and charges                                                        441                                  397                                  394

(1) Significant rise in rents from investment properties arising from the contribution of SNI at 31 December 2005, this entity being consolidated only from the second
half of 2004.




                                                                                                                                Caisse des Dépôts | Financial Report 2005   | 39 |
Consolidated Financial Statements




               Note 28 - Gross margin on insurance activities
                                                                                                       31.12.2005              Pro forma                31.12.2004
               (in millions of euros)                                                                                          31.12.2004
               Premiums earned, paid or provided for                                                       11,449                  9,040                       9,090
               Costs of benefits including changes in technical reserves                                  (14,301)               (11,543)                    (11,532)
               Net investment income                                                                        3,693                  3,241                       3,250
               Gross margin on insurance activities                                                           841                        738                    808
               Of which: gross margin on life assurance activities                                            719                        657                    670
               Of which: gross margin on non-life activities                                                  122                         81                    138

               This is the gross margin generated by CNP Assurances, whose profit was proportionately consolidated at 31 December
               2005 at a rate of 43.66%.



               Reconciliation of gross margin with ordinary operating profit
                                                                 31.12.2005                          Pro forma                                 31.12.2004
                                                                                                     31.12.2004
               (in millions of euros)                  Life        Non-life   Total     Life           Non-life      Total        Life           Non-life     Total

               Gross margin on insurance
               activities                                719          122       841      657                81         738         670              138         808
               Adjustment for elimination of
               intra-group accounts from
               gross margin                                                                                                         (17)                         (17)
               Personnel expenses
               by function before elimination of
               intra-group accounts                     (123)          (10)    (133)     (101)               (8)      (109)        (100)             (17)      (117)
               Other administrative expenses
               by function before elimination of
               intra-group accounts                      (95)          (50)    (145)      (86)             (45)       (131)         (86)             (68)      (154)
               Net operating amortisation and
               depreciation charges                      (13)           (1)     (14)      (15)               (1)       (16)         (15)               (2)       (17)
               Net investment income
               transferred and other adjustments        (119)          (18)    (137)     (110)             (18)       (128)        (109)             (21)      (130)
               Underwriting profit at
               consolidation rate                        369            43      412      345                 9         354         343                30        373
               Employee profit-sharing                     (6)                    (6)          (4)                       (4)             (4)                      (4)
               Net investment income
               transferred                               119            18      137      110                18         128         109                21        130
               Ordinary operating profit at
               consolidation rate                        482            61      543      451                27         478         448                51        499
               Total ordinary operating
               profit (100%)                           1,103          140     1,243     1,034               63       1,097       1,035                98      1,133




| 40 |   Caisse des Dépôts | Financial Report 2005
Note 29 - Net income from other activities
                                                                                   31.12.2005     Pro forma           31.12.2004
(in millions of euros)                                                                            31.12.2004
Sales and other operating income                                                       2,612           2,465                2,577
Purchases consumed and other operating expenses                                         (783)           (721)                (803)
Net income from other activities                                                       1,829           1,744                1,774

This item relates solely to the Services and Property arms, excluding the investment property activity incorporated in other
banking operating income and charges.



Note 30 - Personnel expenses
                                                                                   31.12.2005     Pro forma           31.12.2004
(in millions of euros)                                                                            31.12.2004
Wages and salaries                                                                     (1,236)        (1,108)              (1,508)
Pension charges and movements in related provisions                                        (63)           (84)               (100)
Other social security and employment-related charges                                     (425)          (402)                (484)
Company performance-related pay and profit-sharing                                         (42)           (39)                 (51)
Payroll-based taxes and similar payments                                                   (83)           (77)               (101)
Transfers to and recoveries from provisions                                                (43)            16                    (1)
Personnel expenses                                                                    (1,892)         (1,694)              (2,245)




Note 31 - Net amortisation, depreciation and impairment charges
          in respect of fixed assets
                                                                                   31.12.2005     Pro forma           31.12.2004
(in millions of euros)                                                                            31.12.2004
Amortisation and depreciation charges in respect of operating fixed assets               (204)          (213)                (243)
Recoveries of amortisation and depreciation in respect of operating fixed assets                           2                    3
Net amortisation and depreciation charges                                               (204)           (211)                (240)
Impairment charges in respect of operating fixed assets                                     (5)            (6)                  (6)
Impairment recoveries in respect of operating fixed assets                                   5              8                    9
Net impairment recoveries                                                                                  2                     3
Net amortisation, depreciation and impairment charges
in respect of fixed assets                                                              (204)           (209)                (237)




                                                                                                  Caisse des Dépôts | Financial Report 2005   | 41 |
Consolidated Financial Statements




               Note 32 - Cost of risk
                                                                                   31.12.2005   Pro forma     31.12.2004
               (in millions of euros)                                                           31.12.2004
               Impairment of loans and advances                                          (37)         (48)           (99)
               Risks in respect of signature commitments                                 (46)         (82)           (82)
               Counterparty and other risks                                              (10)           (3)        (100)
               Impairment charges and transfers to provisions                            (93)        (133)         (281)
               Impairment of loans and advances                                           58           45            87
               Risks in respect of signature commitments                                  39            5             6
               Counterparty and other risks                                                7           16            25
               Impairment recoveries and transfers from provisions                       104           66           118
               Losses on irrecoverable loans and advances and recoveries                 (37)         (19)          (30)
               Losses and recoveries                                                     (37)         (19)          (30)
               Cost of risk                                                              (26)         (86)         (193)




               Note 33 - Gains or losses on fixed assets
                                                                                   31.12.2005   Pro forma     31.12.2004
               (in millions of euros)                                                           31.12.2004
               Gains or losses on disposals of tangible and
               intangible fixed assets                                                     8            1            (1)
               Gains or losses on transactions in long-term equity interests and
               held-to-maturity securities                                                50          (17)          569
               Gains or losses on disposals of participating interests and
               gains or losses on advances                                                 9          (53)          537
               Impairment charges and recoveries                                          43           36            37
               Balance (profit/loss) on transactions in respect of
               long-term equity interests and advances                                    52          (17)          574
               Gains or losses on transactions in held-to-maturity securities             (2)                         (6)
               Impairment charges and recoveries                                                                       1
               Balance (profit/loss) on transactions in
               held-to-maturity securities                                                (2)                        (5)
               Gains or losses on fixed assets                                            58          (16)          568




| 42 |   Caisse des Dépôts | Financial Report 2005
Note 34 - Income tax
a. Breakdown of deferred and current tax charges and benefits
                                                                           31.12.2005         Pro forma            31.12.2004
(in millions of euros)                                                                        31.12.2004
Current taxes                                                                     (723)              (607)                (804)
Deferred taxes                                                                     165                114                  118
Tax charge                                                                       (558)               (493)                (686)



b. Analysis of deferred tax assets and liabilities
(in millions of euros)                                                                        31.12.2005           31.12.2004
Deferred tax assets                                                                                    40                   23
Deferred tax liabilities                                                                             (273)                (367)
Net deferred taxes per balance sheet                                                                 (233)                (344)

The recognition of “the Marini amendment” in the French Amending Finance Law (Loi de Finances Rectificative) 2004, which
provided for progressive reduction of the taxation of gains generated in respect of long-term equity interests, was reflected
in 2005 by a deferred tax benefit of €90.7 million for the Central Sector.
Furthermore, the acquisition of Fineco Vita by CNP Assurances generated a flow on first consolidation in the balance sheet
of €36 million for deferred tax liabilities.




                                                                                               Caisse des Dépôts | Financial Report 2005   | 43 |
Consolidated Financial Statements




         Note 35 - Profit by business segment
                                                           Caisse des   Property       CNP       Services    Private   CNCE strategic    Total
                                                            Dépôts                  Assurances               equity     participating
         (in millions of euros)                                                                                           interest

         Net banking income                                  1,774         771         840        1,437        206                      5,028
         General operating expenses                           (395)       (556)       (257)      (1,225)        (39)                    (2,472)
         - personnel expenses                                 (647)        (319)       (130)        (773)       (23)                    (1,892)
         - other administrative expenses                      (282)        (268)       (127)        (452)       (28)                    (1,157)
         - reinvoicings                                        534           31                                  12                        577
         Net amortisation, depreciation and
         impairment charges in respect of
         tangible and intangible fixed assets                   (73)        (10)        (15)        (105)        (1)                     (204)
         Gross operating profit                              1,306         205         568          107        166                      2,352
         Cost of risk                                           (19)        (10)                       3                                   (26)
         Operating profit                                    1,287         195         568          110        166                      2,326
         Share of profits/losses of undertakings
         accounted for by the equity method                      34                       8            3                    416           461
         Gains or losses on fixed assets                         41          28                      (13)         2                        58
         Profit on ordinary activities before taxation       1,362         223         576          100        168          416         2,845
         Exceptional profit                                        7           1                                  2                          10
         Income tax                                            (231)       (103)       (164)         (31)       (29)                      (558)
         Net amortisation charges in respect of goodwill          (1)         (9)        (18)          (9)        7                         (30)
         Net transfers to FGBR
         Minority interests                                       (8)         (5)       (81)         (25)       (34)         (27)         (180)
         Net profit attributable to the group                1,129         107         313            35       114          389         2,087




| 44 |     Caisse des Dépôts | Financial Report 2005
Note 36 - Reconciliation of reported profit with the pro forma
          2004 profit
                                                                                         Reductions                              Increases

                                                            31.12.2004       Restructuring     Reported       Other      CNCE group          Other    31.12.2004
                                                             reported           gain (1)     CNCE group                   pro forma                   pro forma
(in millions of euros)                                                                       31.12.2004 (2)               31.12.2004

Net banking income                                            5,726                41        (1,270)          (30)                             31       4,498
General expenses                                              (3,423)              44            815           30                              19       (2,515)
Gross operating profit                                        2,303                85           (455)            0                             50       1,983
Cost of risk                                                    (193)                            107                                                       (86)
Operating profit                                              2,110                85           (348)            0                             50       1,897
Profits/losses of undertakings accounted for
by the equity method                                             271              (47)          (190)                        320                           354
Gains or losses on fixed assets                                  568            (590)              4                                            2           (16)
Profit on ordinary activities before taxation                 2,949             (552)           (534)            0           320               52       2,235
Exceptional profit/loss                                         (101)            100                                                                          (1)
Income tax                                                      (685)             76             130                                          (14)        (493)
Net charges for amortisation of goodwill                          (41)                            13                                            5           (23)
Net transfers to FGBR                                             (44)                            43                                            1
Minority interests                                              (166)                             23                          (17)             (4)        (164)
Net profit attributable to the group                          1,912             (376)           (325)            0           303               40       1,554

This pro forma profit at 31 December 2004 has been produced in accordance with the assumptions described in accounting policies
and principles (§2 comparability of financial statements).

(1) Neutralisation of the net economic gain generated by the Restructuring in 2004.
(2) Neutralisation of the actual CNCE group contribution (including Eulia and Ixis).




                                                                                                                      Caisse des Dépôts | Financial Report 2005     | 45 |
Consolidated Financial Statements




         Note 37 - Scope of consolidation of Caisse des Dépôts group
                                                                 31.12.2005                             31.12.2004
         GROUPS/COMPANIES                             Method     % Control     % Interest    Method     % Control     % Interest
         Caisse des Dépôts division
         Caisse des Dépôts (Central Sector)              FULL        100.00        100.00       FULL        100.00        100.00
         ALTEAU SA                                        FULL        100.00         51.00       FULL        100.00         51.00
         C3D HOLDING (1)                                  FULL        100.00        100.00       FULL        100.00        100.00
         C3D INVESTMENT                                   FULL        100.00        100.00       FULL        100.00        100.00
         CDC HOLDING FINANCE                              FULL        100.00        100.00       FULL        100.00        100.00
         CDC KINEON (2)                                                                          FULL        100.00        100.00
         CDC PROJETS URBAINS                              FULL        100.00        100.00
         FINANCIERE TRANSDEV SA                           FULL        100.00         50.12       FULL        100.00         50.12
         GROUPE BETURE / CAP ATRIUM SASU                  FULL        100.00         99.96       FULL        100.00         99.96
         INFORMATIQUE CDC                                 FULL        100.00         63.30       FULL        100.00         63.30
         SADSI SA                                                                                FULL        100.00         99.96
         SAS BRE DESCARTES (3)                            FULL        100.00         64.98       FULL        100.00         58.84
         SOGEPOSTE                                      EQUITY         35.00         35.00     EQUITY         49.00         49.00

         Anatol Invest group
         ANATOL INVEST HOLDING FRANCE                     FULL        100.00        100.00       FULL        100.00        100.00
         ANATOL INVEST HOLDING BV                         FULL        100.00        100.00       FULL        100.00        100.00
         PBW REAL ESTATE FUND                           EQUITY         50.00         50.00     EQUITY         50.00         50.00
         ATRIUM TOWER                                   EQUITY         50.00         50.00     EQUITY         50.00         50.00
         BRISTOL                                        EQUITY         50.00         50.00     EQUITY         50.00         50.00
         IBC                                            EQUITY         50.00         50.00     EQUITY         50.00         50.00
         MOMPARK MFC                                    EQUITY         50.00         50.00
         MYSLBEK                                        EQUITY         50.00         50.00     EQUITY         50.00         50.00
         WEBC                                           EQUITY         50.00         50.00     EQUITY         50.00         50.00

         OSEO BDPME group
         OSEO BDPME (formerly-BDPME HOLDING)            EQUITY         43.14         43.14     EQUITY         42.75         42.75
         AUXICONSEIL                                    EQUITY         43.14         43.14     EQUITY         42.75         42.75
         AUXIFINANCES                                   EQUITY         43.14         43.14     EQUITY         42.75         42.75
         AVENIR ENTREPRISES INVESTISSEMENT              EQUITY         43.14         34.63     EQUITY         42.75         35.07
         AVENIR TOURISME                                EQUITY         43.14         24.20     EQUITY         42.75         24.22
         BIOTECH GARANTIE                                                                      EQUITY         42.75         26.29
         COMPAGNIE AUXILIAIRE OSEO                      EQUITY         43.14         43.14     EQUITY         42.75         42.75
         ENERBAIL                                                                              EQUITY         42.75         42.75
         OSEO BATIROC                                   EQUITY         43.14         38.64     EQUITY         42.75         39.13
         OSEO SOFARIS                                   EQUITY         43.14         25.68     EQUITY         42.75         25.97
         OSEO SOFARIS REGIONS                           EQUITY         43.14         22.64     EQUITY         42.75         13.63

         Foncière 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
         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
         SCI AUSTERLITZ                                   FULL        100.00        100.00       FULL        100.00        100.00
         SCI RIVE GAUCHE                                  FULL        100.00        100.00       FULL        100.00        100.00
         URBA CLUB                                        FULL        100.00        100.00       FULL        100.00        100.00

         Logistic group
         LOGISTIS                                       EQUITY         33.33         33.33     EQUITY         33.33         33.33
         SCI ARTOIPOLE ARRAS                            EQUITY         33.33         33.33     EQUITY         33.33         33.33
         SCI CLESUD                                     EQUITY         33.33         33.33     EQUITY         33.33         33.33
         SCI EUROCENTRE TOULOUSE                        EQUITY         33.33         33.33     EQUITY         33.33         33.33
         SCI PARISUD                                    EQUITY         33.33         33.33     EQUITY         33.33         33.33
         SCI PARISUD BAT D                              EQUITY         33.33         33.33



| 46 |    Caisse des Dépôts | Financial Report 2005
                                                             31.12.2005                               31.12.2004
GROUPS/COMPANIES                                  Method     % Control     % Interest    Method       % Control       % Interest
SCI PARISUD VI                                      EQUITY         33.33         33.33      EQUITY           33.33           33.33
SCI PLAINE DE L’AIN                                 EQUITY         33.33         33.33      EQUITY           33.33           33.33
SCI PLAINE DE L’AIN BAT C                           EQUITY         33.33         33.33
SCI PORTE DE FRANCE                                 EQUITY         33.33         33.33      EQUITY           33.33           33.33
SCI SAINT LAURENT DE MURE                           EQUITY         33.33         33.33      EQUITY           33.33           33.33
SCI SAINT OUEN L’AUMONE (formerly-SCI VILLEBON)     EQUITY         33.33         33.33      EQUITY           33.33           33.33

Private Equity division
CDC Entreprises group
CDC ENTREPRISES                                       FULL        100.00        100.00        FULL          100.00          100.00
AVENIR ENTREPRISES GESTION                            FULL        100.00         51.00        FULL          100.00           51.00
CDC ENTREPRISE 1 (4)                                  FULL        100.00         87.16        FULL          100.00           87.16
CDC ENTREPRISE 2 (4)                                  FULL        100.00         49.30        FULL          100.00           48.32
CDC ENTREPRISES CAPITAL INVESTISSEMENT (4) (5)        FULL        100.00         79.07        FULL          100.00           79.07
CDC ENTREPRISES EQUITY CAPITAL (4)                    FULL        100.00         79.07        FULL          100.00           79.07
CDC ENTREPRISES INNOVATION (4)                        FULL        100.00         79.07        FULL          100.00           79.07
CDC ENTREPRISES SERVICES INDUSTRIE (4)                FULL        100.00         79.07        FULL          100.00           79.07
CDC ENTREPRISES VALEURS MOYENNES                      FULL        100.00        100.00        FULL          100.00          100.00
FCPR PART’COM                                         FULL        100.00         94.00
FONDINVEST CAPITAL (4)                                FULL        100.00         63.23        FULL          100.00           63.23
FP GESTION                                            FULL        100.00        100.00        FULL          100.00          100.00
PART’COM                                              FULL        100.00        100.00        FULL          100.00          100.00

CDC PME Croissance
CDC PME CROISSANCE                                    FULL        100.00         55.59        FULL          100.00           55.59

CNP division
CNP Assurances group (4) (6)
CNP ASSURANCES                                       PROP          43.66         43.66       PROP            43.61           43.61
ASSURBAIL                                            PROP          43.66         43.25       PROP            43.61           43.21
ASSURPOSTE                                           PROP          21.83         21.83       PROP            21.81           21.81
CAIXA SEGUROS                                        PROP          43.66         22.59       PROP            43.61           22.57
CNP IAM                                              PROP          43.66         43.66       PROP            43.61           43.61
CNP IMMOBILIER                                       PROP          43.66         43.66       PROP            43.61           43.61
CNP INTERNATIONAL                                    PROP          43.66         43.66       PROP            43.61           43.61
CNP SEGUROS DE VIDA                                  PROP          43.66         33.38       PROP            43.61           33.35
ECUREUIL VIE (7)                                     PROP          43.66         21.83       PROP            43.61           21.81
FINECO VITA                                          PROP          43.66         25.10
GLOBAL                                               PROP          43.66         36.46       PROP            43.61           36.42
GLOBAL VIDA                                          PROP          43.66         36.48       PROP            43.61           36.45
INVESTISSEMENT TRESOR VIE - ITV                      PROP          43.66         43.66       PROP            43.61           43.61
PREVIPOSTE                                           PROP          43.66         43.66       PROP            43.61           43.61
PREVISOL                                                                                    EQUITY           13.01           13.01
PREVISOL RETIRO                                                                             EQUITY           13.00           13.00
PREVISOL VIDA                                                                               EQUITY           13.03           13.03
PROVINCIA SEGUROS DE VIDA                                                                   EQUITY           17.44           17.44
SICAC                                                PROP          43.66         43.66       PROP            43.61           43.61




                                                                                         Caisse des Dépôts | Financial Report 2005   | 47 |
Consolidated Financial Statements




                                                                        31.12.2005                             31.12.2004
         GROUPS/COMPANIES                                    Method     % Control     % Interest    Method     % Control     % Interest
         Property division
         ICADE group
         ICADE SA                                               FULL        100.00        100.00       FULL        100.00        100.00
         HOUSING
         ICADE PATRIMOINE
         ICADE PATRIMOINE                                        FULL        100.00         98.03
         CIE IMMOBILIERE DE LA REGION PARISIENNE (CIRP)                                                 FULL        100.00         92.73
         FONCIERE COMMERCES IDF                                  FULL        100.00         98.03       FULL        100.00        100.00
         SA POUR LA CONSTRUCTION
         DE LOGEMENTS ECONOMIQUES (SACLE)                        FULL        100.00        100.00       FULL        100.00        100.00
         SCI LOCATIVES (59 companies)                            FULL        100.00                     FULL        100.00

         ICADE CAPRI
         ICADE CAPRI                                             FULL        100.00        100.00       FULL        100.00         65.00
         CAPRI GROUP (165 companies): 137 FULL and 28 PROP                                 100.00
         ELLUL GROUP (30 companies): 25 FULL and 5 PROP                                     50.85                                  33.05
         PROMOMIDI GROUP (10 companies)                          FULL        100.00         50.99       FULL        100.00         33.14

         PROPERTY MANAGEMENT
         ICADE ADB (formerly GFF)                                FULL        100.00        100.00       FULL        100.00        100.00
         CABINET VILLA                                           FULL        100.00        100.00
         EUROCAMPUS SARL                                         FULL        100.00         60.00       FULL        100.00         60.00
         GFF HABITAT SAS (8)                                                                            FULL        100.00        100.00
         GFF INTITUTIONNELS SAS                                  FULL        100.00        100.00       FULL        100.00        100.00
         GFF PARTICIPATIONS SAS                                  FULL        100.00        100.00       FULL        100.00        100.00
         ICADE EUROSTUDIOMES                                     FULL        100.00        100.00       FULL        100.00        100.00
         MONTPARNASSE SERVICES SARL                              FULL        100.00         99.80       FULL        100.00         99.80
         VILLA GESTION                                           FULL        100.00        100.00
         VILLA TRANSACTIONS                                      FULL        100.00        100.00

         OFFICE AND COMMERCIAL PROPERTY
         EMGP
         COMPAGNIE EMGP SA                                       FULL        100.00         82.67       FULL        100.00         85.15
         SCI PDM 1                                               FULL        100.00         82.67       FULL        100.00         85.15
         SCI PDM 2                                               FULL        100.00         82.67       FULL        100.00         85.15
         SCI PDM 3                                               FULL        100.00         82.67       FULL        100.00         85.15
         CFI (CHEMIN DE FER INDUSTRIEL) SAS                      FULL        100.00         82.66       FULL        100.00         85.14
         MANUTRA SECURITE SARL                                   FULL        100.00         45.54       FULL        100.00         46.91
         MANUTRA SAS                                             FULL        100.00         45.47       FULL        100.00         46.83
         SCI SEVERINE                                            FULL        100.00         49.60
         SCI 68 VICTOR HUGO                                      FULL        100.00         82.67       FULL        100.00         85.15
         SCI BASSIN NORD                                        PROP          50.00         41.34      PROP          50.00         42.58
         SCI BATI GAUTIER                                        FULL        100.00         82.67       FULL        100.00         85.15
         SCI LE PARC DU MILLENAIRE                               FULL        100.00         82.67       FULL        100.00         85.15
         SERAEL SA                                               FULL        100.00         82.22       FULL        100.00         84.68
         SNC LE PARC DU MILLENAIRE                               FULL        100.00         82.67       FULL        100.00         85.15

         FONCIERE DES PIMONTS
         ICADE FONCIERE DES PIMONTS                              FULL        100.00         94.94       FULL        100.00         76.53
         SA MESSINE PARTICIPATIONS                               FULL        100.00         94.94       FULL        100.00         76.53
         SAS BRE DESCARTES (3)
         SCI CAMILLE DESMOULINS                                  FULL        100.00         94.94       FULL        100.00         76.53
         SCI DU 1 ROND POINT DES CHAMPS ELYSEES                  FULL        100.00         94.94       FULL        100.00         76.53
         SCI DU 1 TERRASSE BELLINI                              PROP          33.33         31.64      PROP          33.33         25.51
         SCI DU 114 AV. DES CHAMPS ELYSEES                       FULL        100.00         94.94       FULL        100.00         76.53


| 48 |    Caisse des Dépôts | Financial Report 2005
                                                31.12.2005                               31.12.2004
GROUPS/COMPANIES                     Method     % Control     % Interest    Method       % Control       % Interest
SCI DU 2 RUE DU 4 SEPTEMBRE              FULL        100.00         94.94        FULL          100.00           76.53
SCI DU 22-24 AV. DE WAGRAM               FULL        100.00         94.94        FULL          100.00           76.53
SCI DU 26-28 AV. DE WAGRAM               FULL        100.00         94.94        FULL          100.00           76.53
SCI DU 3/5 AV. DE FRIEDLAND              FULL        100.00         94.94        FULL          100.00           76.53
SCI DU 31 RUE DE MOGADOR                 FULL        100.00         94.94        FULL          100.00           76.53
SCI DU 69 BLD HAUSSMANN                  FULL        100.00         94.94        FULL          100.00           76.53
SCI DU PONT NEUF                         FULL        100.00         94.94        FULL          100.00           76.53
SCI MORIZET                              FULL        100.00         94.94        FULL          100.00           76.53
SCI RIVES DU XVème                       FULL        100.00         94.94        FULL          100.00           76.53
SCI SEINE A4B                            FULL        100.00         94.94        FULL          100.00           76.53
TERTIAL
ICADE TERTIAL                            FULL        100.00        100.00        FULL          100.00          100.00
AMENAGEMENT CROIX DE BERNY               FULL        100.00         62.70        FULL          100.00           62.70
ANTONY PARC II SCI                       FULL        100.00        100.00        FULL          100.00          100.00
LES PORTES D’ARCUEIL A SNC               FULL        100.00        100.00        FULL          100.00          100.00
LES PORTES D’ARCUEIL B SNC               FULL        100.00        100.00        FULL          100.00          100.00
LES PORTES D’ARCUEIL C SNC               FULL        100.00        100.00        FULL          100.00          100.00
NERUDA FONTANOTS SCI                     FULL        100.00        100.00        FULL          100.00          100.00
ODYSSEUM 2 SCI                           FULL        100.00         77.00        FULL          100.00           77.00
PARIS BERTHELOT                         PROP          25.00         25.00
PB31 PROMOTION SNC                      PROP          50.00         50.00       PROP            50.00           50.00
SCI 22/24 RUE DE LAGNY                  PROP          51.00         51.00       PROP            51.00           51.00
SCI ESPACE MARCEAU                      PROP          51.00         51.00       PROP            51.00           51.00
SCI NICE 400 PROMENADE DES ANGLAIS      PROP          50.00         50.00       PROP            50.00           50.00
ARCOBA
ICADE ARCOBA                             FULL        100.00        100.00        FULL          100.00          100.00

ICADE CONSEIL
ICADE CONSEIL                            FULL        100.00        100.00
ICADE EXPERTISE                          FULL        100.00        100.00
EUROGEM GROUP
ICADE EUROGEM                            FULL        100.00        100.00        FULL          100.00          100.00
FACIMALP SA                              FULL        100.00         64.88        FULL          100.00           64.88
GESTEC RS CONSULTANTS SAS                FULL        100.00        100.00        FULL          100.00          100.00
ICADE GESTION TERTIAIRE                  FULL        100.00        100.00
ICADE SURETIS                            FULL        100.00        100.00        FULL          100.00           66.58
ILABOR                                   FULL        100.00        100.00
IMOP SA                                  FULL        100.00         79.00        FULL          100.00           79.00
IPORTA SAS                               FULL        100.00        100.00        FULL          100.00           99.75
ISIS FACILITIES SAS                      FULL        100.00         55.00        FULL          100.00           55.00
KLEBER FM SAS                            FULL        100.00         75.00        FULL          100.00           75.00
NORMANDIAL SERVICES                      FULL        100.00         60.00        FULL          100.00           60.00
PROPERTIA FM SAS                        PROP          49.00         49.00       PROP            49.00           49.00
STHAL SNC                               PROP          50.00         50.00       PROP            50.00           50.00
PUBLIC-SECTOR PARTNERSHIPS
ICADE G3A
ICADE G3A SAS                            FULL        100.00        100.00        FULL          100.00          100.00
CENTRE EST PROMOTION SNC                 FULL        100.00        100.00        FULL          100.00          100.00
FRANCE OUEST PROMOTION SNC               FULL        100.00        100.00        FULL          100.00          100.00
ICADE CITES SNC (8)                                                              FULL          100.00          100.00
ICADLEO                                  FULL        100.00         66.67
LES BUREAUX DE L’ ILE DE NANTES          FULL        100.00        100.00        FULL          100.00          100.00
LES TOVETS                               FULL        100.00         99.90
NORD PROMOTION SNC                       FULL        100.00        100.00        FULL          100.00          100.00


                                                                            Caisse des Dépôts | Financial Report 2005   | 49 |
Consolidated Financial Statements




                                                                 31.12.2005                             31.12.2004
         GROUPS/COMPANIES                             Method     % Control     % Interest    Method     % Control     % Interest
         SANESCO SA                                                                            EQUITY         40.00         40.00
         SORIF ICADE LES PORTES D’ESPAGNE                PROP          50.00         50.00

         SETHRI
         SETHRI - SETAE                                   FULL        100.00        100.00       FULL        100.00        100.00

         SCET
         SCET (8)                                                                                FULL        100.00        100.00

         EUROPE
         EURIS BELGIQUE SPRL (Belgium)                    FULL        100.00        100.00       FULL        100.00        100.00
         GFF FINCAS ANZIZU SARL (Spain)                   FULL        100.00         90.00       FULL        100.00         90.00
         ICADE ITALIA (ex-IMMOGEST SRL) (Italy)           FULL        100.00        100.00       FULL        100.00        100.00
         IMMOBILIARIA DE LA CDC ESPANA
         (ex-SCIC ESPANA SA) (Spain)                      FULL        100.00        100.00       FULL        100.00        100.00
         IMSI EUROGEM IBERICA SA (Spain)                  FULL        100.00        100.00       FULL        100.00         94.68
         NEWREAL (Italy)                                  FULL        100.00        100.00
         RESA ESPANA SA (Spain)                           FULL        100.00         67.00       FULL        100.00         67.00

         Société Nationale Immobilière group
         SOCIETE NATIONALE IMMOBILIERE                    FULL        100.00        100.00       FULL        100.00        100.00
         CD CITES (formerly-ICADE CITES) (8)              FULL        100.00        100.00
         CD HABITAT (formerly-GFF HABITAT) (8)            FULL        100.00        100.00
         FONCIERE FERRUS                                  FULL        100.00        100.00       FULL        100.00        100.00
         S2AI                                             FULL        100.00        100.00       FULL        100.00        100.00
         SAINTE BARBE                                     FULL        100.00        100.00       FULL        100.00        100.00
         SCET (8)                                         FULL        100.00        100.00

         Services division
         TRANSDEV group
         TRANSDEV SA                                      FULL        100.00         68.01       FULL        100.00         68.01

         FRANCE
         AEROPASS SAS                                     FULL        100.00         68.01       FULL        100.00         68.01
         AIR ORLY                                         FULL        100.00         68.01
         AIRCAR SAS                                       FULL        100.00         68.00       FULL        100.00         68.00
         ALPES BUS FOURNIER SARL                          FULL        100.00         68.01       FULL        100.00         68.01
         ALTIBUS SARL                                     FULL        100.00         44.87       FULL        100.00         44.87
         ATCRB SAS                                        FULL        100.00         68.01       FULL        100.00         68.01
         AUTOBUS DE MARNE LA VALLEE SAS (AMV)             FULL        100.00         61.31       FULL        100.00         61.31
         BARLATIER SAS                                    FULL        100.00         68.01       FULL        100.00         68.01
         CARS BIZIERE SA                                  FULL        100.00         61.21       FULL        100.00         61.21
         CARS BRIDET SA                                   FULL        100.00         67.94       FULL        100.00         67.94
         CARS COMTADINS SAS                               FULL        100.00         68.01       FULL        100.00         68.01
         CARS D’ORSAY SAS                                 FULL        100.00         68.01       FULL        100.00         67.96
         CIE EXPLOITATION AUTOMOBILE
         ET DE TRANSPORT SAS (CEAT)                       FULL        100.00         68.01       FULL        100.00         68.01
         CIE TRANSPORTS DE LA COMMUNAUTE SNC (CTC)        FULL        100.00         54.41       FULL        100.00         54.41
         CITES BUS 2 RIVES
         (TRANSPORTS URBAINS DE ROMANS SARL)              FULL        100.00         68.01       FULL        100.00         68.01
         COFITREC SNC                                     FULL        100.00         68.01       FULL        100.00         68.01
         COMPAGNIE AUTOCARS DE PROVENCE SAS (CAP)         FULL        100.00         68.00       FULL        100.00         68.00
         COURRIERS DE L’AUBE SCS                          FULL        100.00         62.21       FULL        100.00         62.21
         DUNAND SARL                                      FULL        100.00         68.01       FULL        100.00         68.01
         EQUIVAL SAS                                     PROP          50.00         34.01      PROP          50.00         34.01
         EUROPE AUTOCARS SAS                              FULL        100.00         67.99       FULL        100.00         67.99
         GUICHARD SARL                                    FULL        100.00         68.01       FULL        100.00         68.01
         ILINVEST                                         FULL        100.00         68.01       FULL        100.00         68.01


| 50 |    Caisse des Dépôts | Financial Report 2005
                                                                 31.12.2005                               31.12.2004
GROUPS/COMPANIES                                      Method     % Control     % Interest    Method       % Control       % Interest
INTERVAL SAS                                              FULL        100.00         67.96        FULL          100.00           67.96
LAON                                                      FULL        100.00         68.01
MACONBUS SAS                                              FULL        100.00         68.01        FULL          100.00           68.01
MARAIS BELLENE SCI                                        FULL        100.00         68.01        FULL          100.00           68.01
MARTIN FRERES SNC                                         FULL        100.00         67.66        FULL          100.00           67.66
MONT BLANC BUS SARL                                       FULL        100.00         50.94        FULL          100.00           50.94
OPTIMUM SARL                                              FULL        100.00         68.01        FULL          100.00           68.01
PROGESUD SA                                               FULL        100.00         68.01        FULL          100.00           34.68
PROGETOURS SARL                                           FULL        100.00         68.01        FULL          100.00           68.01
RAPIDES DE BOURGOGNE SNC                                  FULL        100.00         68.01        FULL          100.00           68.01
RAPIDES DE COTE D’OR (RCO) SNC                            FULL        100.00         68.01        FULL          100.00           68.01
RAPIDES DE SAONE ET LOIRE SA                              FULL        100.00         45.32        FULL          100.00           45.32
RAPIDES DU SUD EST SNC                                    FULL        100.00         68.01        FULL          100.00           68.01
RAPIDES DU VAL DE LOIRE SNC                               FULL        100.00         68.01        FULL          100.00           68.01
RATP DEVELOPPEMENT SA                                   EQUITY         25.00         17.00      EQUITY           25.00           17.00
SAINT QUENTIN MOBILITE                                    FULL        100.00         68.01        FULL          100.00           68.01
SETAO SNC                                                 FULL        100.00         68.00        FULL          100.00           68.00
SOCIETE DE TRANSPORT
DU BASSIN CHELLOIS SAS (STBC)                                                                    PROP            80.00           54.41
SOCIETE DES TRANSPORTS
DU BRIANÇONNAIS SARL (STB)                                FULL        100.00         34.69        FULL          100.00           34.69
SOCIETE DOUAISIENNE DE TRANSPORT SAS (SDT)                FULL        100.00         68.01        FULL          100.00           68.01
SOFITRANS SA                                              FULL        100.00         68.01        FULL          100.00           68.01
STA AGEN SA (STAA)                                                                                FULL          100.00           68.01
STAB SA                                                   FULL        100.00         68.00        FULL          100.00           68.00
STE NOUVELLE DES AUTOBUS AJACCIENS SA (SNAA)              FULL        100.00         68.01        FULL          100.00           68.01
STE TRANSPORT AGGLOMERATION
CHALONNAISE SARL (STAC)                                   FULL        100.00         54.41        FULL          100.00           54.41
STE TRANSPORTS AUTOMOBILE
DU MIDI SNC (STADIMI)                                     FULL        100.00         68.01        FULL          100.00           68.01
T.R.F.                                                    FULL        100.00         68.01        FULL          100.00           68.01
TCVO SARL                                                 FULL        100.00         34.69        FULL          100.00           34.69
TIPS SAS                                                  FULL        100.00         61.86        FULL          100.00           61.87
TRANSAMO SA                                               FULL        100.00         67.84        FULL          100.00           67.84
TRANSAVOIE SA                                             FULL        100.00         67.67        FULL          100.00           67.67
TRANSDATA SNC                                             FULL        100.00         68.01        FULL          100.00           68.01
TRANSDEV ALPES SAS                                        FULL        100.00         68.01        FULL          100.00           68.01
TRANSDEV ALSACE                                           FULL        100.00         68.01
TRANSDEV DAUPHINE SAS                                     FULL        100.00         68.01        FULL          100.00           68.01
TRANSDEV EST SAS                                          FULL        100.00         68.01        FULL          100.00           68.01
TRANSDEV LORRAINE ETB                                                                             FULL          100.00           68.01
TRANSDEV NORD EST                                         FULL        100.00         68.01
TRANSDEV ORLEANS SNC                                      FULL        100.00         68.01        FULL          100.00           68.01
TRANSDEV PARIS EST SAS                                    FULL        100.00         68.01        FULL          100.00           68.01
TRANSDEV PARIS SUD SA                                     FULL        100.00         68.01        FULL          100.00           68.01
TRANSDEV SUD SAS                                          FULL        100.00         68.01        FULL          100.00           68.01
TRANSDEVIT                                                FULL        100.00         64.61
TRANS’L SARL                                              FULL        100.00         67.94        FULL          100.00           67.83
TRANSPART SNC                                             FULL        100.00         68.01        FULL          100.00           68.01
TRANSPORT EN COMMUN
DE LA REGION D’AVIGNON SAS (TCRA)                         FULL        100.00         68.01        FULL          100.00           68.01
TRANSPORTS COMMUNS REGION METZ SAEM (TCRM)              EQUITY         39.80         27.07      EQUITY           39.80           27.07
TRANSPORTS URBAIN DE CHELLES SA (TUC)                     FULL        100.00         57.82        FULL          100.00           67.96
VAL D’EUROPE AIRPORT SAS (VEA)                            FULL        100.00         57.53        FULL          100.00           57.53
VISUAL ILE DE FRANCE SNC (formerly CARS LE CAPLAIN)       FULL        100.00         68.01        FULL          100.00           68.01
VISUAL SUD SNC                                            FULL        100.00         68.01        FULL          100.00           68.01
VISUAL TOURISME SAS                                                                               FULL          100.00           68.01
VOYAGES CROLARD                                           FULL        100.00         68.01        FULL          100.00           68.01



                                                                                             Caisse des Dépôts | Financial Report 2005   | 51 |
Consolidated Financial Statements




                                                                       31.12.2005                             31.12.2004
         GROUPS/COMPANIES                                   Method     % Control     % Interest    Method     % Control     % Interest
         OUTSIDE FRANCE

         EURAILCO GMBH (Germany)                               PROP          50.00         34.01      PROP          50.00         34.01
         TRANSREGIO GMBH (Germany)                             PROP          50.00         25.50      PROP          37.50         25.50
         BRISBANE FERRIES JV (Australia)                       PROP          50.00         34.01      PROP          50.00         34.01
         METROLINK PTY (Australia)                             PROP          50.00         34.01      PROP          50.00         34.01
         QUEENSLAND (Australia)                                 FULL        100.00         68.01       FULL        100.00         68.01
         TRANSDEV AUSTRALIA LTD (Australia)                     FULL        100.00         68.01       FULL        100.00         68.01
         TRANSDEV NEW SOUTH WALES LTD (Australia)               FULL        100.00         68.01       FULL        100.00         68.01
         TRANSDEV VICTORIA LTD (Australia)                      FULL        100.00         68.01       FULL        100.00         68.01
         S2M (Spain)                                            FULL        100.00         40.76
         TENEMETRO SL (Spain)                                   FULL        100.00         40.81       FULL        100.00         40.81
         BTL (Great Britain)                                    FULL        100.00         68.01
         EURAILCO UK LTD (Great Britain)                        FULL        100.00         34.01       FULL        100.00         68.01
         LONDON UNITED 1994 LTD (Great Britain)                 FULL        100.00         68.01       FULL        100.00         68.01
         LONDON UNITED BUSWAYS LTD (Great Britain)              FULL        100.00         68.01       FULL        100.00         68.01
         NOTTINGHAM TRAM CONSORTIUM JV (Great Britain)         PROP          50.00         34.01      PROP          50.00         34.01
         SOVEREIGN BUSES LONDON LTD (Great Britain)             FULL        100.00         68.01       FULL        100.00         68.01
         STANWELL LTD (Great Britain)                           FULL        100.00         68.01       FULL        100.00         68.01
         TRANSDEV EDINBURGH TRAM LTD (Great Britain)            FULL        100.00         68.01       FULL        100.00         68.01
         TRANSDEV PLC (Great Britain)                           FULL        100.00         68.01       FULL        100.00         68.01
         TRANSDEV TRAM UK LTD (Great Britain)                   FULL        100.00         68.01       FULL        100.00         68.01
         AMT (Italy)                                           PROP          41.00         26.49
         CALCADA (Portugal)                                     FULL        100.00         68.01       FULL        100.00         68.01
         CHARLINE LTD (Portugal)                                FULL        100.00         68.01       FULL        100.00         68.01
         DOMINGOS DA CUNHA LTD (Portugal)                       FULL        100.00         68.01       FULL        100.00         68.01
         R.B.L. (formerly RODOVIARIA DA BEIRA) (Portugal)       FULL        100.00         66.30       FULL        100.00         66.30
         R.E.D.M. (fromerly RODOVIARIA D’ENTRE
         DOURO E MINHO SA) (Portugal)                           FULL        100.00         67.82       FULL        100.00         67.82
         SOCIEDADE DE TRANSPORTES
         DO CARAMULO LTD (Portugal)                             FULL        100.00         66.30       FULL        100.00         66.30
         T.M.P. (Portugal)                                      FULL        100.00         68.01       FULL        100.00         68.01
         T.P.T-SGPS SA (Portugal)                               FULL        100.00         68.01       FULL        100.00         68.01
         T.R.P. (ex-CAVADO-SA) (Portugal)                       FULL        100.00         68.01       FULL        100.00         68.01
         TRANSDEV PORTUGAL (succursale) (Portugal)                                                     FULL        100.00         68.01
         TRANSDEV PORTUGAL LTD (Portugal)                       FULL        100.00         68.01       FULL        100.00         68.01
         TRANSPORTES RODOVARIOS DE PORTUGAL SA
         (formerly CAIMA SA) (Portugal)                         FULL        100.00         68.01       FULL        100.00         68.01

         Compagnie des Alpes group
         COMPAGNIE DES ALPES SA                                 FULL        100.00         40.01       FULL        100.00         40.07
         COMPAGNIE DES ALPES FINANCEMENT                        FULL        100.00         39.61

         SKIING AREAS

         CDA DS                                                 FULL        100.00         40.01
         CENTRALE INVESTISSEMENTS ET LOISIRS SA (CIEL)          FULL        100.00         40.01       FULL        100.00         40.07
         COMPAGNIE DU MONT-BLANC SA                           EQUITY         23.37          9.35     EQUITY         15.12          6.06
         DOMAINE SKIABLE DE FLAINE (DSF) SA                     FULL        100.00         32.39       FULL        100.00         32.44
         DOMAINE SKIABLE DE GIF (DSG) SA                        FULL        100.00         32.38       FULL        100.00         32.42
         MERIBEL ALPINA SA                                      FULL        100.00         40.01       FULL        100.00         40.07
         SELALP SA                                              FULL        100.00         38.06       FULL        100.00         38.11
         SERRE CHEVALIER 1350                                   FULL        100.00         40.01
         SERRE CHEVALIER SKI DEVELOPPEMENT                    EQUITY         33.96         13.59
         SOCIETE DES MONTAGNES DE L’ARC SA (SMA)                FULL        100.00         36.81       FULL        100.00         36.86
         STE AMENAGEMENT ARVES GIFFRE SA (SAG)                  FULL        100.00         32.38       FULL        100.00         32.42
         STE AMENAGEMENT LA PLAGNE SA (SAP)                     FULL        100.00         37.22       FULL        100.00         37.28
         STE CONSTRUCTION IMMOBILIERE
         VALLEE DE BELLEVILLE (SCIVABEL) SCI                    FULL        100.00         32.66       FULL        100.00         32.71



| 52 |    Caisse des Dépôts | Financial Report 2005
                                                             31.12.2005                               31.12.2004
GROUPS/COMPANIES                                  Method     % Control     % Interest    Method       % Control       % Interest
STE EXPLOITATION
VALLEE DE BELLEVILLE SA (SEVABEL)                     FULL        100.00         32.66        FULL          100.00           32.71
STE TELEPHERIQUES
DE LA GRANDE MOTTE SA (STGM)                          FULL        100.00         31.12        FULL          100.00           31.17
STE TELEPHERIQUES DE L’AIGUILLE GRIVE SA (STAG)       FULL        100.00         36.81        FULL          100.00           36.86

ALETSCH RIEDERALP BAHNEN (Switzerland)              EQUITY         20.00          8.00
CMBF (COURMAYEUR MT BLANC) SPA (Italy)              EQUITY         29.81         11.93      EQUITY           29.81           11.94
SAAS - FEE BERGBAHNEN AG (Switzerland)              EQUITY         38.00         15.20      EQUITY           38.00           15.23
SWISSALP SA (Switzerland)                             FULL        100.00         40.01        FULL          100.00           40.07
TELEVERBIER SA (Switzerland)                        EQUITY         20.30          8.12      EQUITY           20.30            8.13

LEISURE PARKS
GREVIN & CIE                                          FULL        100.00         40.01        FULL          100.00           40.07
BOIS DE BAGATELLE SCI                                 FULL        100.00         40.01        FULL          100.00           40.07
LES PRODUCTIONS DU PARC SA                            FULL        100.00         40.01        FULL          100.00           40.07
MUSEE GREVIN SA                                       FULL        100.00         38.36        FULL          100.00           38.42
SOCIETE DE MISE EN VALEUR DU PATRIMOINE SA            FULL        100.00         40.01        FULL          100.00           40.07
AQUARIUM GEANT DE SAINT-MALO SA                       FULL        100.00         40.01        FULL          100.00           40.07
BAGATELLE SA                                          FULL        100.00         40.01        FULL          100.00           40.07
CENTRES ATTRACTIFS JEAN RICHARD                       FULL        100.00         40.01
FRANCE MINIATURE SA                                   FULL        100.00         40.01        FULL          100.00           40.07
GREVIN & CIE TOURAINE                                 FULL        100.00         40.01        FULL          100.00           40.07
PARC DE LOISIRS DE BAGATELLE                          FULL        100.00         40.01        FULL          100.00           40.07
PORT SAINT PERE - PLANETE SAUVAGE                     FULL        100.00         20.17

BICI ENTERTAINMENT SA (Switzerland)                   FULL        100.00         40.01        FULL          100.00           40.07
DOLFINARIUM HARDEWIJK BV (Netherlands)                FULL        100.00         40.01        FULL          100.00           40.07
GREVIN AVONTURENPARK
HELLENDOORN BV (Netherlands)                          FULL        100.00         40.01        FULL          100.00           40.07
GREVIN DEUTSCHLAND GMBH (Germany)                     FULL        100.00         40.01        FULL          100.00           40.07
HARDERWIJK HELLENDOORN
HOLDING BV (Netherlands)                              FULL        100.00         40.01        FULL          100.00           40.07
PLEASUREWOOD HILLS (Great Britain)                    FULL        100.00         40.01        FULL          100.00           40.07

Egis group
EGIS SA                                               FULL        100.00        100.00        FULL          100.00           92.66

FRANCE
A.C.I. SA                                             FULL        100.00         99.96        FULL          100.00           92.62
BCEOM SA                                              FULL        100.00         99.99        FULL          100.00           92.65
BDPA-SCET AGRI SA                                     FULL        100.00        100.00        FULL          100.00           92.66
BETEREM INFRASTRUCTURE SA                             FULL        100.00         99.99        FULL          100.00           92.65
BETURE INFRASTRUCTURE SA                              FULL        100.00        100.00        FULL          100.00           92.66
EGIS INGENIERIE SA                                    FULL        100.00        100.00        FULL          100.00           92.66
EGIS PORTS SA                                       EQUITY         20.00         20.00      EQUITY           20.00           18.53
EGIS PROJECTS SA                                      FULL        100.00        100.00        FULL          100.00           92.66
EST INFRA INGENIERIE SA                               FULL        100.00         99.98        FULL          100.00           92.64
INFRAPLAN                                             FULL        100.00         99.94        FULL          100.00           92.60
INGENIERIE DES SYSTEMES D’INFORMATION
ET DE SECURITE (ISIS) SA                              FULL        100.00        100.00        FULL          100.00           92.66
JEAN MULLER INTERNATIONAL SA                          FULL        100.00         99.99        FULL          100.00           92.65
OUEST INFRA SA                                        FULL        100.00         84.98        FULL          100.00           78.74
PARK + PARKINGS SECURISES                            PROP          40.00         40.00
ROUTALIS SAS                                          FULL        100.00         70.00
SATEC                                                 FULL        100.00        100.00        FULL          100.00           92.66
SCETAUROUTE SA                                        FULL        100.00        100.00        FULL          100.00           92.66
SEMALY SA                                             FULL        100.00         82.57        FULL          100.00           76.51
SEP A28                                              PROP          65.00         65.00       PROP            65.00           60.23



                                                                                         Caisse des Dépôts | Financial Report 2005   | 53 |
Consolidated Financial Statements




                                                                   31.12.2005                             31.12.2004
         GROUPS/COMPANIES                               Method     % Control     % Interest    Method     % Control     % Interest
         SERALP INFRASTRUCTURE SA                           FULL        100.00         99.99       FULL        100.00         92.65
         SOCIETE DU METRO DE MARSEILLE SA (SMM)             FULL        100.00         82.57       FULL        100.00         76.51
         SUD OUEST INFRA                                    FULL        100.00         64.98       FULL        100.00         60.21
         TRANSROUTE INTERNATIONAL SA                        FULL        100.00        100.00       FULL        100.00         92.66

         OUTSIDE FRANCE
         ADEGIS PTY (Australia)                            PROP          50.00         50.00      PROP          50.00         46.33
         ATTIKES DIADROMES LTD (Greece)                   EQUITY         20.00         20.00     EQUITY        100.00         18.53
         AUTOSTRADA EXPLO EKSPLOATACJA (Poland)            PROP          45.00         45.00      PROP          45.00         41.70
         BHEGIS (Australia)                                PROP          50.00         50.00      PROP          50.00         46.33
         EGIS PROJECTS ASIA PACIFIC (Australia)             FULL        100.00        100.00       FULL        100.00         92.66
         EGIS DEUTSCHLAND GMBH (Germany)                                                           FULL        100.00         92.66
         EGIS DORSCH DEVELOPPEMENT
         (EDD) GMBH (Germany)                                                                      FULL        100.00         92.66
         EGIS PROJECT VICTORIA PTY (Australia)                                                   EQUITY        100.00         92.66
         EGIS PROJECTS GMBH (Austria)                       FULL        100.00        100.00       FULL        100.00         92.66
         EGIS SEMALY INC (United States)                    FULL        100.00         82.57       FULL        100.00         76.51
         EPSYS (Philippines)                                FULL        100.00        100.00       FULL        100.00         92.66
         EYSER SA (Spain)                                   FULL        100.00        100.00       FULL        100.00         92.66
         GROUPE DORSCH CONSULT GMBH
         (Germany) (10 companies)                                                                  FULL        100.00         92.66
         ITAL CONSULT SPA (Italy)                                                                EQUITY         29.19         27.05
         OPERSCUT (Portugal)                                FULL        100.00         70.00       FULL        100.00         64.86
         SCET CAMEROUN SA (Cameroon)                        FULL        100.00         99.92       FULL        100.00         92.59
         SEMALY IRLANDE (Ireland)                           FULL        100.00         82.57       FULL        100.00         76.51
         SEMALY PORTUGAL (Portugal)                         FULL        100.00         82.57       FULL        100.00         76.51
         SEMALY SINGAPOUR (Singapore)                       FULL        100.00         82.57       FULL        100.00         76.51
         SEMALY UK (Great Britain)                          FULL        100.00         82.57       FULL        100.00         76.51
         SISPLAN (Italy)                                                                         EQUITY         36.33         33.66
         STALEXPORT TRANSROUTE AUTOLASKA (Poland)          PROP          45.00         45.00      PROP          45.00         41.70
         TMC (Philippines)                                 PROP          34.00         34.00      PROP          34.00         31.50
         TOLLAUST PTY (Australia)                          PROP          50.00         50.00      PROP          50.00         46.33
         TRANS-CESTE D.O.O. (Croatia)                       FULL        100.00        100.00       FULL        100.00         92.66
         TRANSLINK INVESTMENT PTY LTD (Australia)          PROP          50.00         50.00      PROP          50.00         46.33
         TRANSROUTE DOOSAN OPERATIONS CO LTD
         (South Korea)                                                                            PROP          50.00         46.33
         TRANSROUTE PHILIPPINES (Philippines)               FULL        100.00        100.00       FULL        100.00         92.66
         TRANSROUTE U.K. (Great Britain)                    FULL        100.00        100.00
         UK HIGHWAYS SERVICES LTD (Great Britain)          PROP          50.00         50.00      PROP          50.00         46.33

         VVF Vacances group
         VVF VACANCES SA                                    FULL        100.00         80.00       FULL        100.00         80.00
         JUMBO TOURS FRANCE SA                            EQUITY         35.00         27.98     EQUITY         35.00         27.98
         TOURING HOTEL SARL                                 FULL        100.00         80.00       FULL        100.00         80.00
         VVF RESERVATION SA                                 FULL        100.00         80.00       FULL        100.00         80.00

         Strategic Participating Interest
         Caisse nationale des caisses d’épargne group
         CAISSE NATIONALE DES CAISSES D’EPARGNE           EQUITY         40.21         40.21     EQUITY         40.21         40.21

         CAISSES D’EPARGNE
         CEP (29 regional caisses)                        EQUITY          8.04          8.04     EQUITY          8.04          8.04

         HOLASSURE GROUP
         HOLLASSURE                                       EQUITY         40.21         40.21     EQUITY         40.21         40.21
         SOPASSURE                                        EQUITY         20.10         20.10     EQUITY         20.10         20.10
         GROUPE CNP ASSURANCES (6)



| 54 |    Caisse des Dépôts | Financial Report 2005
                                                       31.12.2005                               31.12.2004
GROUPS/COMPANIES                            Method     % Control     % Interest    Method       % Control       % Interest
OCEOR GROUP
FINANCIERE OCEOR                              EQUITY         40.21         40.21      EQUITY            40.21          40.21
ALYSEOR                                       EQUITY         40.21         40.21
BANQUE DE LA REUNION                          EQUITY         40.21         32.96      EQUITY            40.21          32.94
BANQUE DE NOUVELLE-CALEDONIE                  EQUITY         40.21         38.56      EQUITY            40.21          38.53
BANQUE DE TAHITI                              EQUITY         40.21         38.46      EQUITY            40.21          38.39
BANQUE DES ANTILLES FRANCAISES                EQUITY         40.21         39.46      EQUITY            40.21          39.20
BANQUE DES ILES SAINT-PIERRE-ET-MIQUELON      EQUITY         40.21         39.07      EQUITY            40.21          39.07
BANQUE INTERNATIONALE DES MASCAREIGNES                                                EQUITY            40.21          35.48
CAISSE D’EPARGNE DE NOUVELLE-CALEDONIE        EQUITY         40.21         40.21      EQUITY            40.21          40.21
CREDIPAC POLYNESIE                            EQUITY         40.21         38.64      EQUITY            40.21          38.38
CREDIT COMMERCIAL DE NOUMEA                   EQUITY         40.21         36.47      EQUITY            40.21          35.96
CREDIT SAINT-PIERRAIS                         EQUITY         18.93         18.93      EQUITY            18.93          18.93
GIE OCEOR INFORMATIQUE                        EQUITY         40.21         33.98      EQUITY            40.21          33.94
MASCAREIGNES INVESTORS SERVICES LTD           EQUITY         40.21         38.00      EQUITY            40.21          40.21
OCEOR LEASE                                   EQUITY         40.21         38.98
SLIBAIL REUNION                               EQUITY         40.21         35.06      EQUITY            40.21          32.92
SOCIETE HAVRAISE CALEDONIENNE                 EQUITY         40.21         34.36      EQUITY            40.21          34.81

BANQUE PALATINE GROUP

BANQUE PALATINE                               EQUITY         40.21         24.13      EQUITY            40.21          24.13
BANQUE MICHEL INCHAUSPE                       EQUITY          8.04          4.83      EQUITY             8.04           4.83
CONSERVATEUR FINANCE                          EQUITY          8.04          4.83      EQUITY             8.04           4.83
EUROSIC SICOMI                                EQUITY         40.21         21.43      EQUITY            40.21           7.91
GCE AFFACTURAGE                               EQUITY         40.21         24.13
GCE BAIL                                      EQUITY         40.21         24.13      EQUITY            40.21          24.13
J VALLOT SARL                                 EQUITY         40.21         24.13      EQUITY            40.21          24.13
PALATINE MUR SNC                              EQUITY         40.21         24.13      EQUITY            40.21          24.13
SANPAOLO ASSET MANAGEMENT                     EQUITY         40.21         24.13      EQUITY            40.21          24.13
SANPAOLO ASSET MANAGEMENT SA                                                          EQUITY            40.21          24.13
SANPAOLO BAIL SA                                                                      EQUITY            40.21          24.13
SOCAVIE SNC                                   EQUITY         40.21         24.13      EQUITY            40.21          24.13
SOCIETE FONCIERE D’INVESTISSEMENT SAS         EQUITY         40.21         24.13      EQUITY            40.21          24.13
SOCIETE IMMOBILIERE D’INVESTISSEMENT SARL     EQUITY         40.21         24.13      EQUITY            40.21          24.13
THIRIET GESTION                               EQUITY         13.43          8.06
UNI-INVEST SAS                                                                        EQUITY            40.21          24.13

IXIS CORPORATE & INVESTMENT BANK GROUP
IXIS CORPORATE & INVESTMENT BANK              EQUITY         40.21         39.23      EQUITY            40.21          39.23
BGL                                           EQUITY         40.21         39.23      EQUITY            40.21          39.23
CLEA2                                         EQUITY         40.21         39.23      EQUITY            40.21          39.23
IXIS INNOV                                    EQUITY         40.21         39.23
IXIS LUXEMBOURG INVESTISSEMENTS               EQUITY         40.21         39.23
IXIS SECURITIES                               EQUITY         40.21         39.23      EQUITY            40.21          39.23
IXIS STRUCTURED PRODUCTS LTD                  EQUITY         40.21         39.23
GROUPE NEXGEN                                 EQUITY         15.18         15.18      EQUITY            15.18          15.18
SNC TOLBIAC FINANCE                           EQUITY         40.21         39.23
IXIS NORTH AMERICA                            EQUITY         40.21         39.23      EQUITY            40.21          39.23
IXIS INVESTMENT MANAGEMENT CORP.              EQUITY         40.21         39.07      EQUITY            40.21          39.10
IXIS CAPITAL MARKET NORTH AMERICA             EQUITY         40.21         39.23      EQUITY            40.21          39.23
IXIS FUNDING CORPORATION                      EQUITY         40.21         39.23      EQUITY            40.21          39.23
IXIS COMMERCIAL PAPER                         EQUITY         40.21         39.23      EQUITY            40.21          39.23
IXIS SECURITIES NORTH AMERICA INC.            EQUITY         40.21         39.23      EQUITY            40.21          39.23
IXIS FINANCIAL PRODUCTS                       EQUITY         40.21         39.23      EQUITY            40.21          39.23
IXIS MUNICIPAL PRODUCTS                       EQUITY         40.21         39.23      EQUITY            40.21          39.23
IXIS DERIVATIVES INC.                         EQUITY         40.21         39.23      EQUITY            40.21          39.23



                                                                                   Caisse des Dépôts | Financial Report 2005   | 55 |
Consolidated Financial Statements




                                                                        31.12.2005                             31.12.2004
         GROUPS/COMPANIES                                    Method     % Control     % Interest    Method     % Control     % Interest
         IXIS REAL ESTATE CAPITAL                              EQUITY         40.21         39.23     EQUITY         40.21         39.23
         IXIS SECURITIZATION CORP.                             EQUITY         40.21         39.23     EQUITY         40.21         39.23
         IXIS FINANCIAL INSTRUMENTS LTD                        EQUITY         40.21         39.23
         IXIS ASIA LIMITED                                     EQUITY         40.21         39.23
         CDC HOLDING TRUST                                     EQUITY         40.21         39.23     EQUITY         40.21         39.23

         OTHER ENTITIES
         CAISSE D’EPARGNE FINANCEMENT                          EQUITY          7.00          7.00
         ITALIA HOLDING (formerly CDC IXIS ITALIA HOLDING)                                            EQUITY          8.04          8.04
         CNETI                                                 EQUITY         40.21         29.53     EQUITY         40.21         29.53
         ECUREUIL ASSURANCE IARD                               EQUITY         40.21         26.14     EQUITY         40.21         26.14
         ECUREUIL GESTION                                      EQUITY         40.21         27.35     EQUITY         38.20         28.23
         ECUREUIL GESTION FCP                                  EQUITY         40.21         27.35     EQUITY         38.20         28.23
         ECUREUIL PARTICIPATIONS                               EQUITY         40.21         40.21     EQUITY         40.21         40.21
         ECUREUIL PROXIMITE                                    EQUITY         40.21         40.15
         ECUREUIL VIE (7)                                      EQUITY         20.02         20.02     EQUITY         20.02         20.02
         GCE NEWTECH                                           EQUITY         40.21         40.21
         GESTITRES                                             EQUITY         40.21         26.54     EQUITY         40.21         26.54
         HOLGEST                                               EQUITY         40.21         40.21     EQUITY         40.21         40.21
         IXIS ASSET MANAGEMENT (GROUP)                         EQUITY         40.21         32.35     EQUITY         40.21         29.72
         IXIS FINANCIAL GUARANTY (GROUP)                       EQUITY         40.21         40.21     EQUITY         40.21         40.21
         MARTIGNAC FINANCE                                                                            EQUITY         40.21         40.21
         MIFCOS (formerly SOCFIM PARTICIPATIONS)               EQUITY         40.21         40.21     EQUITY         40.21         40.21
         QUAI DE SEINE GESTION ET LOCATION                     EQUITY         40.21         40.21     EQUITY         40.21         40.21
         SAS FONCIERE ECUREUIL                                 EQUITY          9.60          9.60
         SCI AVANT SEINE 1                                     EQUITY         40.21         40.21     EQUITY         40.21         40.21
         SCI AVANT SEINE 2                                     EQUITY         40.21         40.21     EQUITY         40.21         40.21
         SNC PARTICIPATIONS ECUREUIL                           EQUITY         40.21         40.21     EQUITY         40.21         40.21
         SNC SEI LOGEMENT                                      EQUITY         40.21         40.21     EQUITY         40.21         40.21
         SNC SEI TERTIAIRE                                     EQUITY         40.21         40.21     EQUITY         40.21         40.21
         SOCIETE EUROPEENNNE D’INVESTISSEMENT                  EQUITY         40.21         40.21     EQUITY         40.21         40.21
         SURASSUR                                              EQUITY         14.88         14.88
         COMPAGNIE 1818 (formerly VEGA FINANCE) (GROUP)        EQUITY         40.21         34.50     EQUITY         40.21         40.21

         CACEIS GROUP
         CACEIS HOLDING                                        EQUITY         20.11         20.11
         IXIS INVESTOR SERVICES                                EQUITY         20.11         20.11     EQUITY         40.21         40.21
         IXIS ADMINISTRATION DE FONDS                          EQUITY         20.11         20.11     EQUITY         40.21         40.21
         IXIS URQUIJO                                          EQUITY         20.11         10.25     EQUITY         40.21         20.51
         CA-IS BANK LUXEMBOURG                                 EQUITY         20.11         20.11
         CA-IS BANK PARIS                                      EQUITY         20.11         20.11
         CACEIS CORPORATE TRUST                                EQUITY         20.11         20.11
         EURO EMETTEURS FINANCE                                EQUITY         20.11         20.11
         FASTNET FRANCE                                        EQUITY         20.11         10.05
         FASTNET LUXEMBOURG                                    EQUITY         20.11          9.05

         CREDIT FONCIER DE FRANCE GROUP
         CREDIT FONCIER DE FRANCE                              EQUITY         40.21         40.21     EQUITY         40.21         40.21
         A3C                                                                                          EQUITY         40.21         40.21
         AUXILIAIRE DU CREDIT FONCIER DE FRANCE                EQUITY         40.21         40.21     EQUITY         40.21         40.21
         CFCAL BANQUE                                          EQUITY         40.21         26.46     EQUITY         40.21         26.70
         CFCAL SCF                                             EQUITY         40.21         26.46     EQUITY         40.21         26.70
         COFIMAB                                               EQUITY         40.21         40.21     EQUITY         40.21         40.21
         COMPAGNIE DE FINANCEMENT FONCIER                      EQUITY         40.21         40.21     EQUITY         40.21         40.21
         COMPAGNIE FONCIERE DE CREDIT                          EQUITY         40.21         40.21     EQUITY         40.21         40.21
         CREDIT DE L’ARCHE                                                                            EQUITY         40.21         40.21




| 56 |    Caisse des Dépôts | Financial Report 2005
                                                                                31.12.2005                                         31.12.2004
GROUPS/COMPANIES                                                 Method         % Control        % Interest        Method          % Control     % Interest
CREDIT FONCIER ASSURANCE COURTAGE                                    EQUITY             40.21           40.17          EQUITY            40.21          40.17
CREDIT FONCIER BANQUE                                                                                                  EQUITY            40.21          40.21
ENTENIAL CONSEIL                                                     EQUITY             40.21           40.21          EQUITY            40.21          40.21
ENVIRONNEMENT TITRISATION ENTENIAL                                   EQUITY             40.21           40.21          EQUITY            40.21          40.21
FCC TEDDY                                                            EQUITY             40.21           40.21          EQUITY            40.21          40.21
FINANCIERE DESVIEUX                                                  EQUITY             40.21           40.21          EQUITY            40.21          40.21
FONCIER ASSURANCE                                                    EQUITY             40.21           40.21          EQUITY            40.21          40.21
FONCIER BAIL                                                         EQUITY             40.21           40.21          EQUITY            40.21          40.21
FONCIER PARTICIPATIONS                                               EQUITY             40.21           40.21          EQUITY            40.21          40.21
SICP (GROUP)                                                         EQUITY             40.21           40.21          EQUITY            40.21          40.21
SOCLIM                                                               EQUITY             40.21           40.21          EQUITY            40.21          40.21
ECUFONCIER                                                           EQUITY             40.21           40.21
SECUNDIS FINANCE                                                     EQUITY             14.07           14.07
FONCIER SERVICES IMMOBILIERS                                         EQUITY             40.21           40.21
ENTENIAL                                                                                                               EQUITY            40.21          40.21
CAPRI RESIDENCES                                                                                                       EQUITY            14.07          14.07
CFG COMPAGNIE FINANCIERE DE GARANTIE                                 EQUITY             40.21           40.21          EQUITY            40.21          40.21
GRAMAT BALARD                                                        EQUITY             40.21           32.12          EQUITY            40.21          32.12
INVESTIMUR                                                           EQUITY             40.21           40.21          EQUITY            40.21          40.21
QUATRINVEST                                                          EQUITY             40.21           40.21          EQUITY            40.21          40.21
RIVP                                                                 EQUITY             11.12           11.12          EQUITY            11.12          11.12
TITRISATION                                                          EQUITY             40.21           40.21          EQUITY            40.21          40.21
VMG                                                                  EQUITY             40.21           40.21          EQUITY            40.21          40.21
VENDÔME INVESTISSEMENTS                                              EQUITY             40.21           40.21          EQUITY            40.21          40.21

CICOBAIL GROUP
CICOBAIL                                                             EQUITY             40.21           40.12          EQUITY            40.21          40.12
CINERGIE                                                             EQUITY             40.21           40.11          EQUITY            40.21          40.11
MUR ECUREUIL                                                         EQUITY             40.21           40.11          EQUITY            40.21          40.11

SOCFIM GROUP
SOCFIM                                                               EQUITY             40.21           40.21          EQUITY            40.21          40.18
SOCFIM PARTICIPATIONS IMMOBILIERES                                   EQUITY             40.21           40.21          EQUITY            40.21          40.18
SOCFIM TRANSACTIONS                                                  EQUITY             40.21           40.21          EQUITY            40.21          40.18

GCE GARANTIES GROUP (formerly EULIA CAUTION)
GCE GARANTIES                                                        EQUITY             40.21           40.21          EQUITY            40.21          40.21
CEGI                                                                 EQUITY             40.21           40.21          EQUITY            40.21          40.21
FINANCIERE CEGI                                                      EQUITY             40.21           40.21          EQUITY            40.21          40.21
SACCEF                                                               EQUITY             40.21           40.21          EQUITY            40.21          40.21
SOCAMAB                                                              EQUITY             40.21           24.13          EQUITY            40.21          16.09
SCI SACCEF LA BOETIE                                                 EQUITY             40.21           40.21
SCI SACCEF CHAMPS ELYSEES                                            EQUITY             40.21           40.21
SCI SACCEF IMMOBILIER                                                EQUITY             40.21           40.21

(1) C3D Holding: merged on 2 January 2006 with Caisse des Dépôts.
(2) Ceased to be consolidated on 1 January 2005.
(3) SAS Bre Descartes: jointly held by Caisse des Dépôts and Foncière des Pimonts (Icade group).
(4) Interest calculated taking account of a joint holding with CNCE (40.21%).
(5) CDC ECI: jointly held by CDC Entreprises and CNCE.
(6) CNP Assurances: jointly held by Caisse des Dépôts and CNCE.
(7) Ecureuil vie: jointly held by CNP Assurances and CNCE.
(8) Entities previously consolidated in Icade and disposed of to SNI.
Consolidation methods - FULL: Fully consolidated - PROP: Proportionately consolidated - EQUITY: Accounted for the equity method.




                                                                                                                    Caisse des Dépôts | Financial Report 2005   | 57 |
Consolidated Financial Statement
Statutory Auditors’ report on the consolidated financial statements
               Financial year ended 31 December 2005

               This is a free translation into English of the Statutory Auditors' report issued in the French language and is provided solely for the convenience
               of English speaking readers. The Statutory Auditors' report includes information specifically required by French law in all audit reports, whether
               qualified or not, and this is presented below the opinion on the consolidated financial statements. This information includes an explanatory
               paragraph discussing the auditors' assessments of certain significant accounting and auditing matters. These assessments were considered
               for the purpose of issuing an audit opinion on the consolidated financial statements taken as a whole and not to provide 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.

               Ladies and Gentlemen,                                                       2. Justification of our assessments
                                                                                           In accordance with the provisions of article L. 225-235 of the
               In accordance with the assignment entrusted to us, we have                  French Commercial Code (Code de commerce) relating to
               audited the accompanying consolidated financial statements                  the justification of our assessments, we draw your attention
               of Caisse des dépôts et consignations for the year ended                    to the following:
               31 December, 2005.                                                          ■ as part of our assessment of the accounting rules and
               These financial statements have been approved by the Chief                  principles applied by the Company, we obtained assurance
               Executive Officer. Our role is to express an opinion on these               that the above changes in accounting methods and the
               financial statements based on our audit.                                    related disclosures were appropriate.
                                                                                           ■ in non-inconsolidated long-term equity holdings and equity
               1. Opinion on the consolidated financial statements                         portfolio securities are valued based on their fair value using a
               We conducted our audit in accordance with the professional                  multicriteria approach (see the Note on the main presentation
               standards applied in France. Those standards require that we                and banking rules –Banking and financial activities, and Notes
               plan and perform the audit to obtain reasonable assurance                   3A, 3B, 5A, 5B to the consolidated financial statements). As
               about whether the financial statements are free of material                 part of our assessment of these estimates, we examined the
               misstatement.                                                               elements used to determine the fair values of the principal
               An audit includes examining, on a test basis, evidence supporting           portfolio lines;
               the amounts and disclosures in the financial statements.                    ■ the principles for measuring and recognising goodwill in
               An audit also includes assessing the accounting principles used             the financial statements are defined in paragraph 3 of the
               and significant estimates made by management, as well as                    consolidation principles and methods section in the notes to
               evaluating the overall presentation of the financial statements. We         the consolidated financial statements. We verified that the
               believe that our audit provides a reasonable basis for our opinion.         approaches used were based on assumptions that were
               In our opinion, the consolidated financial statements present               consistent with the forecast data in the plans established by
               fairly the assets and liabilities, financial position and results of        the group;
               the consolidated group of companies, in accordance with                     ■ certain technical items specific to the insurance businesses,
               French accounting regulations and generally accepted                        on both the assets and liabilities sides of the consolidated
               accounting principles.                                                      balance sheet, notably technical provisions, were estimated
               Without qualifying our opinion, we draw your attention to the               based on statistical and actuarial considerations, as presented
               note to the consolidated financial statements entitled                      in the note on the presentation and valuation rules –Insurance
               “Consolidation principles and methods”. This note describes:                activities, and in Note 13 to the consolidated financial
               ■ in the paragraph “Changes in accounting methods”, the                     statements. We verified that the assumptions used in the
               changes of accounting methods and their implementation                      calculation models were reasonable.
               with effect from 1 January 2005, as follows:                                We also assessed the reasonableness of these estimates.
               - Article 13 of CRC Regulation No. 2002-03 relating to credit risk,         The assessments were made in the context of our audit of the
               witch deals with the discounting of provisions for expected losses          consolidated financial statements, taken as a whole, and
               on doubtful and compromised doubtful outstandings;                          therefore contributed to the formation of the unqualified
               - CRC Regulation No. 2002-10 relating to the depreciation,                  opinion expressed in the first part of this report.
               amortisation and impairment of fixed assets;
               - the recognition of goodwill in the functional currency.                   3. Specific verification
               ■ in the paragraph “Comparibility of financial statements”, the             We also examined the financial information provided in the
               basis for preparing pro forma financial information. This                   annual report. We have no observations to make as to the
               paragraph also states that the pro forma financial information              fairness of that information and its conformity with the
               is not necessarily representative of the financial position or              consolidated financial statements.
               performance that would have been reported if the transaction
               had taken place at a different date.


                                                     Done in Neuilly-sur-Seine and La Défense, on 4 May 2006
                                                                       The Statutory Auditors

                   PricewaterhouseCoopers Audit                                                                                Mazars & Guérard

                           Catherine Pariset                                                                            Guillaume Potel Denis Grison

| 58 |   Caisse des Dépôts | Financial Report 2005
Central Sector
Balance sheet


(in millions of euros)                                                          Notes    31.12.2005         31.12.2004

 Assets
Interbank and similar transactions                                                           29,511              30,427
Cash and balances at central (or post office) banks                                                                   1
Treasury bills and similar securities                                               3        18,722              18,458
Loans and advances to credit institutions                                           1        10,789              11,968
Customer transactions                                                               2         9,436                2,691
Ordinary overdrafts                                                                             821                  646
Other loans and advances to customers                                                         8,615                2,045
Debt securities, equities & other fixed-income and variable-yield securities                 63,262              58,151
Debentures and other fixed-income securities                                        3        51,555              46,759
Equities and other variable-yield securities                                        3        11,707              11,392
Participating interests                                                                       9,500                8,967
Participating interests                                                        4 and 5        9,500                8,967
Intangible fixed assets                                                             6             87                  62
Tangible fixed assets                                                               6         1,793                1,655
Other assets                                                                        7           410                  335
Prepayments and accrued income                                                      7             43                 224
Total assets                                                                               114,042              102,512

 Liabilities and equity
Interbank and similar transactions                                                           34,112              25,162
Central (or post office) banks                                                                    2                  13
Amounts owed to credit institutions                                                 8        34,110              25,149
Customer transactions                                                               9        45,914              47,822
Ordinary deposit liabilities to customers                                                    32,151              28,502
Other amounts owed to customers                                                              13,763              19,320
Debts evidenced by certificates                                                    10         4,502                3,327
Interbank market securities and negotiable debt instruments                                   4,502                3,327
Other liabilities                                                                  11        15,967              13,427
Accruals and deferred income                                                       11           148                   90
Provisions                                                                         12           580                  692
Guarantee deposits                                                                                 1                    2
Fund for general banking risks (FGBR)                                              13           608                  608
Equity (excluding FGBR)                                                            13        12,210              11,382
Reserves                                                                                     10,818                9,250
Revaluation reserve                                                                              34                   34
Regulated reserves and investment grants                                                          8                    8
Retained earnings                                                                                56                   35
Profit for the year                                                                           1,294                2,460
Interim dividend                                                                                                    (405)
Total liabilities and equity                                                               114,042              102,512




                                                                                         Caisse des Dépôts | Financial Report 2005   | 59 |
Central Sector
Off-balance sheet items


               (in millions of euros)                                                                                                     31.12.2005               31.12.2004

                Financing and guarantee commitments and commitments given in respect of securities
               Financing commitments                                                                                                             7,027                  26,179
               To credit institutions                                                                                                               12                     137
               To customers (1)                                                                                                                  7,015                  26,042
               Guarantee commitments                                                                                                             2,931                    4,466
               To credit institutions                                                                                                            1,623                    1,178
               To customers (2)                                                                                                                  1,308                    3,288
               Commitments in respect of securities                                                                                                 205                        5
               Securities deliverable                                                                                                               205                        5

                Financing and guarantee commitments and commitments received in respect of securities
               Financing commitments                                                                                                            10,262                  12,388
                                                      (3)
               Received from credit institutions                                                                                                10,262                  12,388
               Guarantee commitments                                                                                                             1,605                    4,130
                                                      (4)
               Received from credit institutions                                                                                                    761                   2,773
               Received from customers                                                                                                              797                   1,001
               Received from the State                                                                                                               47                     356
               Commitments in respect of securities                                                                                                 451                     827
               Securities receivable                                                                                                                451                     827

                Commitments given and received relating to forward financial instruments and options
               Commitments given                                                                                                                40,478                  73,858
               Forward financial instruments                                                                                                    39,766                  72,678
               Options                                                                                                                             712                   1,180
               Commitments received                                                                                                             40,345                  73,885
               Forward financial instruments                                                                                                    39,689                  72,751
               Options                                                                                                                             656                   1,134

                Other commitments given and received                                                                                               512                     388
                                               (5)
               Other commitments given                                                                                                              495                     378
               Other commitments received                                                                                                            17                      10

               Off-balance sheet commitments relating to spot and forward foreign currency transactions and to foreign currency lending/bor-
               rowing transactions are described in Note 16.
               (1) Including commitment given to ACOSS of €6 billion corresponding to the €13 billion authorisation reduced by the €7 billion utilisation in the 1st half of 2005.
               At 31 December 2004, the commitment given (€25 billion) was unutilised following the takeover of the outstandings by CADES in the 2nd half of 2004.
               (2) The reduction in guarantee commitments given to customers of €1,980 million is mainly explained by the reduction in counter-guarantee commitments in respect
               of UCITS totalling €2 billion.
               (3) The financing commitments received from credit institutions concern the cash commitment in relation to the CNCE.
               (4) The reduction in the guarantee commitments received from credit institutions of €2,012 million is explained by the reduction in commitments received in respect
               of the UCITS of IXIS Corporate & Investment Bank (€2 billion).
               (5) Including commitment of €101 million from Caisse des Dépôts in connection with the acquisition of SANEF.




| 60 |   Caisse des Dépôts | Financial Report 2005
Income statement


(in millions of euros)                                                         Notes   31.12.2005           31.12.2004
Interest receivable and similar income                                                      1,824                1,969
Treasury and interbank transactions                                               20          224                  189
Customer transactions                                                             21          126                  355
Debentures and other fixed-income securities                                      22        1,419                1,228
Other interest receivable and similar income                                      23           55                  197
Interest payable and similar charges                                                       (1,108)              (1,272)
Treasury and interbank transactions                                               20         (404)                (344)
Customer transactions                                                             21         (592)                (673)
Debentures and other fixed-income securities                                      22         (109)                (250)
Other interest payable and similar charges                                        23            (3)                  (5)
Income from variable-yield securities                                             24          731                1,108
Commissions (income)                                                              25           18                   18
Commissions (charges)                                                             25          (39)                 (31)
Gains or losses on trading portfolio transactions                                 26          (29)                 (29)
Gains or losses on available-for-sale portfolio transactions and similar          27          637                  476
Other net banking operating income and charges                                    28          (60)                 (47)
Net Banking Income                                                                          1,974                2,192
General operating income and charges                                              29         (354)                (289)
Personnel expenses                                                                           (514)                (413)
Other administrative expenses                                                                (236)                (199)
Reinvoicing                                                                                   396                  322
Other operating income and charges                                                                                   1
Amortisation, depreciation and impairment charges in respect of fixed assets      30          (44)                 (55)
Gross Operating Profit                                                                      1,576                1,848
Cost of risk                                                                      31          (17)                 (82)
Operating Profit                                                                            1,559                1,766
Gains or losses on fixed assets                                                   32           17                  940
Profit on ordinary activities before taxation                                               1,576                2,706
Exceptional loss                                                                                (1)
Income tax                                                                        33         (281)                (256)
Net transfers to Funds for General Banking Risks (FGBR)
and to regulated reserves                                                         34                                10
Net Profit                                                                                  1,294                2,460




                                                                                       Caisse des Dépôts | Financial Report 2005   | 61 |
Central Sector
Notes to the financial statements




               Accounting principles used in                                      4. Procedures for spreading premiums/
               preparing the financial statements                                 discounts on fixed-rate debt securities
                                                                                  With regard to fixed-rate debt securities, the Central Sector
               The financial statements for the year ended 31 December 2005       elected to apply, from 1 January 2005, the yield-to-maturity
               have been prepared in accordance with the general account-         method for spreading premiums/discounts provided for by
               ing principles applicable in France to credit institutions.        CRB Regulation 90-01 (Commission de la Réglementation
               The presentation of the financial statements is in accordance      Bancaire) and CB (Commission Bancaire) Instruction 94-07.
               with the provisions of Regulation No. 2000-03 of the French        CRB Regulation No. 90-15 provides, moreover, that charges
               Accounting Regulation Committee (CRC), relating to indi-           or income for instruments assigned to hedge an item or a
               vidual financial statements of undertakings coming under           group of hedged items are recognised in profit and loss (i.e.
               the French Banking and Financial Regulation Committee              in the income statement) in a manner that is symmetrical
               (CRBF).                                                            with the income or charges relating to the hedged items.
               The accounting principles and valuation methods used are           Consequently, equalisation payments relating to swaps des-
               unchanged from those applied in the preparation of the finan-      ignated as fixed-rate debt security hedging instruments are
               cial statements for the year ended 31 December 2004,               now taken to profit and loss by the yield-to-maturity method.
               except for the points mentioned below.                             The net impact of these changes in method on the equity of
                                                                                  the Central Sector at 1 January 2005 was +€5.6 million.
               I – Changes in accounting methods
                                                                                  5. Amortisation, depreciation and
               1. Accounting treatment of credit risk                             impairment of assets
               The provisions of CRC Regulation No. 2005-03 amending              Regulation No. 2002-10 of the CRC relating to the amorti-
               Regulation No. 2002-03 relating to credit risk and of manda-       sation, depreciation and impairment of assets has been
               tory application on 1 January 2006 were not applied early by       applied by the Central Sector from 1 January 2005.
               the Central Sector on 1 January 2005.                              The Central Sector applies the components method for the
                                                                                  recognition of expenditure on replacement and maintenance.
               2. Determining of impairment relating to                           Five categories of components have been identified: shell,
               credit risk                                                        roof and façade, fixtures, general technical installations and
               The Central Sector is subject, from 1 January 2005, to the         major maintenance.
               application of the discounted cash flows method in order to        Each component is depreciated over a period of use that is
               calculate the impairment of doubtful and compromised               appropriate to it according to the type of property (6 types
               doubtful outstandings, as explained in Article 13 of Regulation    of property have been defined).
               No. 2002-03 of the CRC.                                            First-time adoption of the components method was carried
               Simulation work was carried out by the Central Sector in           out retrospectively by reconstituting the historical amortised
               order to estimate the impact of this change in the regulations     cost, as prescribed by Notice No. 2003-E of the Emergency
               on the level of impairment already recognised.                     Committee dated 9 July 2003.
               It emerges from this that the application of this discounting      The historical gross values of the Central Sector’s fixed assets
               method would have no material impact on earnings and               were reconstituted using the current allocation of the cost
               equity for the 2005 financial year.                                as new of the fixed assets according to the type of proper-
               The Central Sector consequently has availed itself of the option   ty. This allocation was determined by in-house experts, with-
               offered by Article 13 of Regulation No. 2002-03 not to discount    out calling into question the land values as recognised in
               expected flows for the purposes of calculating the impairment      the accounts on the date of the first application.
               of doubtful and compromised doubtful outstandings.                 Furthermore, as the Central Sector elected to apply the
                                                                                  components method to expenditure on major maintenance,
               3. Accounting for transactions in securities                       the provisions for major repairs in existence at 31 December
               Regulation No. 2005-01 of the CRC relating to the recog-           2004 were written back to equity on the date of first appli-
               nition of transactions in securities, amending Regulation          cation.
               No. 90-01 of the CRBF, is applicable to periods commenc-           No provision for major repairs relating to replacement expen-
               ing on or after 1 January 2007.                                    diture had been recognised prior to 2005 in the Central
               The Central Sector did not elect for the early application         Sector’s accounts.
               of this Regulation from 1 January 2005.                            The application of CRC Regulation No. 2002-10, relating to
                                                                                  the amortisation, depreciation and impairment of assets
                                                                                  constitutes a change of accounting method that resulted in
                                                                                  a net impact on the equity of the Central Sector, at 1 January
                                                                                  2005, of +€15 million, broken down into (a) the recovery of


| 62 |   Caisse des Dépôts | Financial Report 2005
existing provisions for major repairs (€17 million) and (b) the    ■ Loans are transferred to doubtful loans and advances as
change in the depreciation periods.                                soon as they carry a known credit risk, that is to say when
                                                                   it is likely that all or part of the sums owed under the agree-
6. Definition, recognition and                                     ment will not be received, notwithstanding the existence of
measurement of assets                                              collateral or a guarantee. In any case, loans considered to
CRC Regulation No. 2004-06 relating to the definition, recog-      be doubtful are loans with instalments past due for more
nition and measurement of assets was applied by the Central        than 3 months (more than 6 months for property loans, and
Sector from 1 January 2005.                                        more than 9 months for local authorities), and loans for which
Software development costs were capitalised in the balance         the counterparty’s financial situation has deteriorated, result-
sheet, with no material impact on the accounts of the Central      ing in a risk of non-recovery, as well as outstandings that
Sector at 31 December 2005.                                        are the subject of collection proceedings.
The new accounting methods applied are set out below
under heading 6 – “Tangible and intangible fixed assets”.          ■ Likewise, all loans and advances to a counterparty, as
                                                                   soon as the counterparty has a loan or advance entered in
II – Accounting principles and                                     doubtful loans and advances, are treated as doubtful loans
valuation methods                                                  or advances in accordance with the “contagion” principle.
                                                                   For groups, the contagion principle is applied on a case-by-
1. Recognition in the income statement                             case basis.
Interest and commissions qualified as interest are recognised
on an accruals basis in accordance with the principle of sepa-     ■ Compromised doubtful loans and advances are identified
ration of accounting periods. Commissions not qualified as         for accounting purposes among doubtful loans and advances.
interest are recognised when they are received or paid.            Compromised doubtful loans and advances are outstandings
                                                                   for which the counterparty’s credit status is such that, after
2. Foreign currency transactions                                   a reasonable period of classification under doubtful outstand-
Assets, liabilities and off-balance sheet commitments denomi-      ings, no reclassification as a sound outstanding is foreseeable;
nated in foreign currencies were translated at the exchange rate   loans and advances for which there has been an event of
at 31 December 2005.                                               default; as well as certain doubtful loans or advances exceed-
Foreign exchange gains and losses arising from ordinary trans-     ing one year and that are of an irrecoverable nature requiring
actions entered into in foreign currencies are recognised in the   an impairment to be determined, and those that it is possible
income statement.                                                  to contemplate will eventually be written off as bad. This
Spot foreign exchange transactions are valued at the spot          analysis must be performed having regard to the collateral
rate. Forward foreign exchange transactions carried out other      or guarantees that exist for such outstandings.
than for hedging purposes are valued at the rate for the term
still to run. Forward foreign exchange transactions entered        ■ Doubtful outstandings and compromised doubtful outstand-
into for hedging purposes are valued symmetrically with the        ings may be reclassified as sound outstandings when pay-
hedged item.                                                       ments have regularly resumed at the amounts correspon-
Furthermore, premiums and discounts relating to hedged             ding to the original contractual instalments and when the
forward foreign exchange transactions are carried to the           counterparty no longer presents any risk of default. They may
income statement over the period still to run until the matu-      also be entered in restructured outstandings if a reschedul-
rity of such transactions.                                         ing of the loan takes place, after a period of observation.

3. Loans and advances to                                           ■ For loans presenting a known credit risk a provision is
credit institutions and customers                                  recorded for the discounted value of all the anticipated loss-
Such loans and advances include credits granted and ordi-          es on outstandings classified as doubtful loans and advances
nary overdrafts, as well as securities received under resale       and as compromised doubtful loans and advances.
agreements with or without actual delivery.
The accounting provisions of CRC Regulation No. 2002-03            ■ Interest is recognised on an accruals basis in respect of
relating to credit risks in undertakings coming under the          sound loans and advances, including restructured loans and
CRBF continue to apply to all loans and advances.                  advances and in respect of non-compromised doubtful loans
                                                                   and advances. Interest on compromised doubtful loans and
t Loans                                                            advances is recognised in the income statement on a cash
Loans are recognised under assets at their redemption value.       basis.
The relevant interest is charged in the income statement on
an accruals basis.


                                                                                                   Caisse des Dépôts | Financial Report 2005   | 63 |
Central Sector




               ■ Recognised interest in respect of doubtful loans and                   Any premiums or discounts are spread over the residual life
               advances that is not collected is fully written down.                    of the security (yield-to-maturity method for fixed-rate debt
                                                                                        securities and negotiable debt instruments, and straight-line
               ■ When the institution deems the loan or advance to be def-              for other securities).
               initely irrecoverable, a loss is recognised.
                                                                                        t  Held-to-maturity securities
               ■ Loans and advances that are restructured on below-market               This category comprises fixed-income securities intended to
               terms are separately identified, where appropriate, under a              be held until their maturity and backed by stable financing or
               specific sub-category of “sound outstandings”. They give                 appropriate hedging.
               rise to the recognition under “cost of risk” of a discount rep-          No provision is recorded for unrealised capital losses that may
               resenting the future interest difference by reference to the             exist by reference to the difference between the carrying value
               lower of the original rate and the market rate on the day of             of the securities and their market price.
               the restructuring, as a deduction from the assets at the time            The accounting provisions of CRC Regulation No. 2002-03,
               of the restructuring. This discount is written back over the             relating to credit risk in undertakings coming under the CRBF
               remaining life of the loan in the interest margin.                       apply, where appropriate, to the credit risk attached to the held-
                                                                                        to-maturity securities. The difference between the acquisition
               t Securities received under a resale agreement                           price and the redemption value of the securities (premium/dis-
               with or without actual delivery                                          count) is amortised using the yield-to-maturity method for nego-
               These are entered under assets in an account representing the            tiable debt instruments and fixed-rate debt securities, and using
               receivable so generated. The relevant income is recognised in            the straight-line method for other debt securities.
               profit or loss for the financial year on an accruals basis. Securities
               taken under a resale agreement with actual delivery and then             t Portfolio securities
               assigned are recognised under liabilities as securities liabilities.     Portfolio securities are investments made regularly with the aim
               These are therefore valued at their market value.                        of deriving therefrom a capital gain in the medium term with-
                                                                                        out the intention of investing long-term in the development of
               4. Securities and transactions in securities                             the business or of actively participating in the operational man-
                                                                                        agement of the issuing undertaking. Such securities are recog-
               4.1. Securities                                                          nised at their acquisition price. They are measured at the lower
               Securities are recognised within five accounting categories cor-         of their historical cost or of their value in use.
               responding to various activities of the institution.                     The value in use is determined by taking account of the gen-
                                                                                        eral prospects for change in the issuer and of the holding
               t Trading securities                                                     period. For quoted companies, the average of the stock
               Trading securities comprise, in addition to transferable secu-           market prices recorded over a sufficiently long period, tak-
               rities, Treasury certificates and negotiable debt instruments.           ing account of the contemplated holding period, in order to
               They are to have a quick turnover period not exceeding six               mitigate the impact of sharp one-off fluctuations in the stock
               months. They are traded on liquid markets and valued at                  market price, generally represents the value in use.
               their market value. On each closing, changes in the market
               value are recognised in profit and loss.                                 t Long-term equity interests
                                                                                        Long-term equity interests are recognised at acquisition
               t Available-for-sale securities                                          cost. They are measured according to their value in use by
               Available-for-sale securities include securities that do not             reference to various criteria such as net assets, profitability
               meet the conditions for classification under the trading or              outlook, the stock market price and capitalisation of earn-
               held-to-maturity securities portfolios. They also include trad-          ings. A provision is recorded in the event of a long-term
               ing securities reclassified at the end of a period of holding            impairment in the value in use of such interests.
               exceeding six months. In this case, the reclassification is
               made at the market price on the day of the transfer.                     4.2. Securities transactions
               Available-for-sale securities are dealt with according to the
               “first-in, first-out” method and are valued as follows:                  Inflation-indexed fungible Government bonds
               ■ Equities and debt securities: unrealised capital losses cal-           In the absence of specific regulations applicable to credit insti-
               culated by reference to the market value on the basis of the             tutions, the indexation of the nominal amount of inflation-
               closing rate are recognised in the form of impairment;                   indexed fungible Government bonds may be recognised using
               ■ Treasury certificates, negotiable debt instruments and inter-          one of the following methods: recognition of the indexation
               bank market instruments: impairment is established accord-               of the nominal amount on the disposal or maturity of the bond,
               ing to the issuers’ creditworthiness and by reference to mar-            recognition over the period still to run of the bond, or imme-
               ket indicators.                                                          diate recognition in income or charges for the period.

| 64 |   Caisse des Dépôts | Financial Report 2005
By analogy with the treatment recommended by Article                   ■ Specialist portfolio management transactions: contracts are
R 332-19 of the French Insurance Code (Code des Assurances),           valued, on the accounts closing date, at their market value.
as amended by Decree No. 2002-1535 of 24 December 2002,                In accordance with the regulations, this value takes account
the gain or loss arising from the indexation of the nominal amount     of an adjustment for counterparty risks and the discounted
of the bonds to the general level of prices is recognised in income    value of future management expenses. The overall balance
or charges for the period from 1 January 2004.                         of valuation differences is carried to the income statement.

t Loaned and borrowed securities                                       t Other interest-rate or foreign exchange transactions
Loaned securities are valued according to the rules for the            Other transactions mainly comprise futures and options.
portfolio of origin.                                                   ■ Hedging transactions: charges or income are carried to
Borrowed securities are recognised, at the market value on             the income statement in a manner that is symmetrical with
the day of the borrowing, in balance sheet assets under the            the method for recognising income or charges in respect of
category of “trading securities”, and in balance sheet liabil-         the hedged item.
ities, in order to record the securities liability with respect to     ■ Transactions other than hedging transactions: agreements
the lender. These items are valued on the basis of their mar-          are valued at their market value. Unrealised gains or losses
ket price on the closing dates.                                        on closing are recognised in profit or loss.
Securities lending and borrowing transactions secured by
cash are treated for accounting purposes as repurchase                 In order better to reflect the economic reality of the activity
agreements with actual delivery.                                       and as an exception to French regulations, illiquid instruments
The remuneration relating to such transactions is recognised           are also valued at a notional market value.
on an accruals basis in profit and loss.
                                                                       t Complex transactions

5. Forward financial instruments and options                           Complex transactions are composite combinations of instru-
Pursuant to the defined strategy regarding the development             ments of identical or different types, natures and valuation
of the dealing activities and the management of market risks,          methods.
Caisse des Dépôts operates in all organised and over-the-              Each component of the transaction is recognised in the bal-
counter markets for forward interest-rate and foreign exchange         ance sheet and in off-balance sheet items according to the
financial instruments and options and in equities. Such trans-         legal nature of the underlying products.
actions are carried out both in France and abroad:                     The result is determined and recognised in a single entry, in
■ under allocated or general hedges, or,                               order to reflect the economic nature of the transactions, as
■ in the context of specialist trading portfolio management.           if a single instrument were involved. In the case of totally new
For all such instruments, and whatever the management aim,             products, without reference to an explicit regulation, the
the nominal value of the contracts and that of the underlying or       accounting approach to the results is based on reasoning
the exercise price is entered under off-balance sheet items. The       by analogy with existing types of products.
recognition of the results for such instruments depends on the         The recognition of the result is based on the management
management aim.                                                        aim:
The accounting provisions of CRC Regulation No. 2002-03                ■ Transactions that are part of a hedging strategy: for pruden-
relating to credit risk in undertakings coming under the CRBF          tial reasons, in the case in particular of poor liquidity of the
apply, where appropriate, to contracts traded on over-the-             market, the profit or loss is recognised on an accruals basis.
counter markets.                                                       A provision is recorded in the case of a negative market value.
The transposition into French national law of the European “fair       ■ Trading portfolio management or for which the result is
value” and “modernisation” directives was effected for the 2004        similar to an arrangement fee: the result is recognised at the
financial year. In this regard, Note 17 of the Notes indicates, for    outset. A discount is applied to take account of future man-
each class of derivative financial instruments, their fair value (if   agement expenses and of any counterparty risks.
this can be determined by reference to a market value or by
applying generally accepted models and techniques) as well             t Market values
as information on the volume and nature of the instruments.            When the market price of the instruments or the valuation
                                                                       parameters are not the subject of official quotations, alterna-
t  Interest-rate and currency swap agreements                          tive valuation methods are used. They involve one or more of
■ Hedging   transactions: charges or income for instruments            the following elements: confirmation of prices by outside coun-
allocated to hedge an item or a group of hedged items are              terparties or brokers, comparison with actual transactions and
recognised in profit and loss in a manner that is symmetri-            research for each class of issuer or instruments.
cal with the income or charges on the hedged items. Profits
or losses on instruments allocated to global hedging are
recognised on an accruals basis.

                                                                                                       Caisse des Dépôts | Financial Report 2005   | 65 |
Central Sector




               Where the valuation of the instruments is based on models,         disposed of in the medium-term are the subject of an impair-
               these integrate the parameters affecting the valuation of such     ment test.
               instruments, in particular the degree of liquidity of the mar-     Market values, for properties of a material amount, are val-
               kets concerned. In a prudential approach, the calculations         ued by reference to external valuations.
               are adjusted to take account of the weaknesses of certain          On interim closings, an external valuation is not required in
               of these parameters, in particular as to their relevance over      every case. An updating is then performed of the calcula-
               a long period.                                                     tion elements that were used when carrying out the last
                                                                                  external valuation.
               6. Tangible and intangible fixed assets
               Pursuant to CRC Regulation No. 2004-06 relating to the             8. Amounts owed to credit institutions and
               definition, recognition and measurement of assets, fixed           deposit liabilities to customers
               assets are valued at their acquisition cost, comprising the        Such amounts comprise deposits, loans taken out and secu-
               purchase price, all directly attributable costs and the bor-       rities given under repurchase agreements with or without
               rowing costs where appropriate.                                    actual delivery.
               Pursuant to CRC Regulation No. 2002-10 relating to the amor-
               tisation, depreciation and impairment of assets, the Central       t Loans
               Sector has applied the components method to expenditure            These are entered under liabilities at their redemption value.
               on replacement and maintenance from 1 January 2005.                The relevant interest is recognised in profit and loss on an
               The identified components are depreciated on a straight-           accruals basis.
               line basis, over their estimated period of use, according to
               the defined types of building:                                     t  Securities given under repurchase agreements with
               The main components are depreciated over the following             actual delivery
               periods:                                                           The liability so generated is entered under liabilities. The
               - Shell: 50 - 100 years                                            securities are kept in their original portfolio and continue to
               - Roof/facade: 30 years                                            be valued according to the rules applicable to this portfo-
               - Fixtures: 10 years                                               lio. The relevant interest is recognised in the income state-
               - General and technical installations: 20 years                    ment on an accruals basis.
               - Major maintenance: 15 years
                                                                                  9. Debts evidenced by certificates
               The residual value, defined as the amount, net of expected         Debts evidenced by certificates are shown under interbank
               disposal costs, that an entity would receive from the dis-         market securities and negotiable debt instruments (certifi-
               posal of the asset on the market at the end of its use, must       cates of deposit and medium-term notes).
               be recognised in the amount on which depreciation is charged,      Accrued interest not yet payable relating to such items is
               when this is both material and measurable.                         entered in a related payables account with a corresponding
               The application of the new regulatory principles resulted, for     entry in the income statement.
               all the property assets, in non-recognition of residual value in
               the amount on which depreciation is charged, as this cannot        10. Provisions
               be reliably determined.                                            Under this heading are shown:
               Software and development costs are amortised over 3 years.         ■ provisions covering potential liabilities that are precisely identi-
               On each closing, if there is an internal or external indication    fied, arising from banking transactions or financial instruments,
               that an item of property may have significantly lost value, an     as well as losses arising from certain business sectors. Such
               impairment test is performed. The net carrying value of the        provisions comprise, inter alia, provisions for interest subsidies
               asset is compared with its present value.                          in respect of “Housing Rehabilitation” loans that have been
               If the present value proves to be less than the net carrying       issued;
               value, the latter is reduced to the present value by means         ■ provisions established to deal with employee benefit com-
               of a provision.                                                    mitments mainly relating to retirement payments and charges
               Likewise, forestry reserves are the subject of a provision for     arising from the introduction of the framework agreement
               impairment in the event of a loss of value.                        signed in December 2005;
                                                                                  ■ provisions established under the provisions of CRC Regulation

               7. Risks regarding investment property                             No. 2000-06, relating to liabilities. Such provisions are intended
               Caisse des Dépôts holds, over the long-term, significant let-      to cover potential liabilities and charges that are clearly spec-
               ting assets.                                                       ified as to their purpose, and for which the amount or due date
               Properties presenting on the closing an internal or external       cannot be determined precisely; the establishment of such is
               indication of loss of value, as well as those intended to be       subject to the existence of an obligation to a third party on


| 66 |   Caisse des Dépôts | Financial Report 2005
closing, and to the absence of consideration that is at least     elected to recognise these differences immediately in the
equivalent expected from this third party. Such provisions com-   income statement. Provisions relating to long-term benefits
prise, inter alia, provisions for notified tax reassessments;     and to termination benefits are estimated using the same
■ a provision for taxes covering the potential tax correspon-     method as that used for post-employment benefits.
ding to rollover relief on securities exchange transactions       In the event that a new post-employment benefits scheme is
(public exchange offerings and mergers).                          established (or rights changed), the past service cost is recog-
                                                                  nised, on a straight-line basis, over the average period still to
11. Employee benefit commitments                                  run until the relevant rights are vested in the personnel.
Benefits granted to personnel are divided into a number of        The reason for applying this method in 2005 is to provide
categories:                                                       better financial information, in accordance with one of the
- short-term benefits: salaries, annual holidays and company      provisions of CNC Recommendation No. 2003-R.01, relat-
performance-related pay;                                          ing to the rules for recognising and measuring commitments
- post-employment benefits: pension scheme, retirement            for pensions and similar benefits and for the purposes of con-
payments, and reduced-rate retirement support;                    vergence with International Accounting Standard (IAS) 19.
- long-term benefits: long-service awards, bonuses linked
to length of service with Caisse des Dépôts, mobility assis-      Commitments for long-service awards or Caisse des Dépôts
tance, solidarity leave;                                          awards are calculated using the same method as that used
- termination benefits: schemes for gradual ceasing of work       to calculate commitments for calculating retirement payments.
(CEPR, CAAcl, CPAb, CAA, CPAa), and help with business
start-ups.                                                        12. Fund for general banking risks
                                                                  This fund is designed to deal with the operational risks and
■  Post-employment benefits, long-term benefits, and termi-       with the charges inherent in banking activities and financial
nation benefits can be on a “defined contributions” or a          asset management activities that cannot be covered else-
“defined benefits” basis.                                         where. This fund is the subject of charges or recoveries
They mainly derive from the new 2006-2008 Framework               recognised in the income statement.
Agreement signed on 20 December 2005.
Defined contribution schemes are generally covered by contri-     13. Income tax
butions made to pension organisations that deal with pay-         The Central Sector pays each year to the Trésor Public a
as-you-go or insurance-based schemes, which organisa-             voluntary contribution representing French corporation tax
tions then handle the payment of pensions, or by the State        (contribution volontaire représentative de l’impôt sur les
as far as far as civil servants are concerned, and which thus     sociétés – CRIS) the amount of which is equal to that which
discharge Caisse des Dépôts from any subsequent liability         would result from the application of French corporation tax
or obligation. The contributions paid constitute expenses         to the institution’s profits.
for the period.                                                   It is this amount which is provided for in the accounts in
Defined benefit schemes relate to staff benefits for which        respect of income tax.
Caisse des Dépôts is committed to a level of benefits to          A provision for taxation on transactions for which tax is
employees. They constitute a medium or long-term potential        deferred is calculated by applying to such transactions the
liability for the employer and therefore give rise to measure-    most likely future rate of tax.
ment and provisioning.                                            The tax rates are 34.93% (full rate), and 15.72% (reduced
The age and retirement conditions used in the calculation         rate). Furthermore, the tax calculation incorporates the pro-
take account of the provisions of French Law No. 2003-775         gressive reduction in the taxation of the long-term capital
of 21 August 2003 on the reform of pensions                       gains generated in respect of the long-term equity interests
                                                                  (titres de participation) included in the “Marini amendment”.
■ The provisions relating to post-employment benefits on a
“defined benefits” basis are adjusted on each closing in
accordance with changes in the actuarial liability for such
commitments. They are measured, internally, using the pro-
jected unit credit method. Such estimates take into account
the use of economic actuarial assumptions that are exter-
nal (discount rate) and internal to Caisse des Dépôts (staff
turnover rate, remuneration changes rate, mortality table,
etc.). Differences arising from changes in the calculation
assumptions or those resulting from the impact of experi-
ence constitute actuarial differences. Caisse des Dépôts has


                                                                                                  Caisse des Dépôts | Financial Report 2005   | 67 |
Central Sector




                Note 1 - Interbank and similar transactions -
                         Loans and advances to credit institutions
                (in millions of euros)                                                                                                      31.12.2005               31.12.2004
                                                (1)
                Ordinary accounts in debit                                                                                                        9,257                    9,956
                Savings funds current accounts                                                                                                      134                       20
                Accrued interest                                                                                                                     41                       22
                Loans and advances to credit institutions repayable on demand                                                                     9,432                    9,998
                Cash credits                                                                                                                         530                   1,407
                - term accounts and loans (2)                                                                                                        528                   1,402
                - doubtful loans and advances (3)                                                                                                    143
                - impairment (3)                                                                                                                    (143)
                - accrued interest                                                                                                                      2                      5
                Securities received under resale agreements with actual delivery                                                                     351                     135
                - term accounts and loans                                                                                                            347                     135
                - accrued interest                                                                                                                      4
                Other credit                                                                                                                         476                     428
                - term accounts and loans                                                                                                            475                     427
                - doubtful loans and advances                                                                                                          10                      10
                - impairment                                                                                                                          (10)                    (10)
                - accrued interest                                                                                                                      1                       1
                Loans and advances to credit institutions with agreed maturity dates                                                              1,357                    1,970
                Loans and advances to credit institutions                                                                                        10,789                  11,968

                (1) Including CNCE ordinary account of €6,414 million (€7,972 million at 31 December 2004) and ICIB €828 million (€106 million in 2004).
                (2) Including ICIB loan outstandings of €448 million, compared with €1,095 million at 31 December 2004, i.e. a reduction of €647 million.
                (3) Transfer of receivables in respect of participating interest held in SOFARIS, written down in full under cash credit (€153 million: see Note 5). €20 million was
                recognised in profit and loss at 31 December 2005, entirely covered by a provision reversal (see Note 14-a) and a further transfer of €10 million was set up
                following the introduction of a new envelope.




| 68 |   Caisse des Dépôts | Financial Report 2005
Note 2 - Customer transactions
(in millions of euros)                                                                                                       31.12.2005              31.12.2004
Ordinary customer overdrafts                                                                                                         821                      645
Doubtful loans and advances                                                                                                             7                        8
Impairment                                                                                                                             (7)                      (7)
Ordinary overdrafts                                                                                                                  821                      646
Cash credits                                                                                                                       7,168                      386
- capital (1)                                                                                                                      7,159                      378
- doubtful loans and advances                                                                                                         15                        16
- impairment                                                                                                                           (6)                       (8)
Miscellaneous credits                                                                                                                595                    1,102
- financial-sector customers                                                                                                          21                        21
- capital (2)                                                                                                                        568                    1,040
- doubtful loans and advances                                                                                                        118                      112
- impairment                                                                                                                        (115)                      (84)
- accrued interest                                                                                                                      3                       13
Investment credits                                                                                                                   402                      358
- capital (3)                                                                                                                        391                      343
- doubtful loans and advances                                                                                                         16                        19
- impairment                                                                                                                           (9)                     (11)
- accrued interest                                                                                                                      4                         7
Housing credits                                                                                                                      396                      130
- capital (4)                                                                                                                        393                      127
- doubtful loans and advances                                                                                                           5                         4
- impairment                                                                                                                           (3)                       (3)
- accrued interest                                                                                                                      1                         2
Subordinated loans                                                                                                                    54                        69
- capital                                                                                                                             52                        66
- doubtful loans and advances                                                                                                           1                         3
- impairment                                                                                                                                                     (1)
- accrued interest                                                                                                                       1                        1
Other loans and advances to customers                                                                                              8,615                    2,045
                               (5)
Customer transactions                                                                                                              9,436                    2,691
Total repayable on demand                                                                                                            821                      646
Total with agreed maturity dates                                                                                                   8,615                    2,045

(1) Including €7,005 million relating to ACOSS outstandings. The overdraft authorisation of €25 billion in 2004 was reduced to €13 billion for 2005.
(2) Loans to legal professions of €552 million (compared with €499 million at 31 December 2004). This reduction is mainly explained by the reclassification under the
heading of “Housing credits” of €273 million of loans to group personnel.
(3) Including loans for professional installations of €215 million (compared with €202 million at 31 December 2004).
(4) Including housing loans for Caisse des Dépôts group personnel of €329 million (compared with €351 million at 31 December 2004 of which €273 million derive
from a reclassification of the heading “Miscellaneous credits”).
(5) Doubtful loans and advances (including interest) amounted to €162 million, including €113 million of compromised doubtful debts.




                                                                                                                              Caisse des Dépôts | Financial Report 2005   | 69 |
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         Note 3 - Transactions in trading, available-for-sale, held-to-maturity
                  and portfolio securities

         a. Analysis by nature and type of portfolio
         (in millions of euros)                                                   31.12.2005                                                    31.12.2004
                                                        Trading      Available-     Held-to-    Portfolio    Total     Trading     Available-     Held-to-     Portfolio   Total
                                                       securities     for-sale      maturity    securities            securities    for-sale      maturity    securities
                                                                     securities    securities                                      securities    securities

         Treasury bills and similar securities         8,188 (1)          362         4,320                  12,870      7,821          740         4,886                  13,447
         Loaned securities                             5,852 (1)                                              5,852      5,011                                              5,011
         Treasury bills and
         similar securities                             14,040            362         4,320                  18,722    12,832           740         4,886                  18,458
                                                               (1)
         Debentures                                    1,098           1,282          5,500                   7,880          50      1,021          6,666                   7,737
         Other fixed-income securities                    920         37,627          1,471                  40,018                 37,078          1,471                  38,549
         Loaned securities                                               569          3,088                   3,657                                   473                     473
         Debentures and other
         fixed-income securities                         2,018        39,478        10,059                   51,555          50     38,099          8,610                  46,759
                    (2)
         Equities                                                       1,621                     9,018      10,639                   1,569                      8,450     10,019
         UCITS                                                            936                       130       1,066                   1,322                         49      1,371
         Loaned securities                                                  2                                     2                       2                                     2
         Equities and other
         variable-yield securities                                      2,559                     9,148      11,707                   2,893                      8,499     11,392
         Total by type of portfolio                     16,058        42,399        14,379        9,148      81,984    12,882       41,732        13,496         8,499     76,609

         (1) These trading securities are held against borrowing from the savings funds (cf. Note 11) - The total outstanding of such securities increased by €2.3 billion.
         (2) The change in the net value of the portfolio securities is explained in Note 3-b.




| 70 |     Caisse des Dépôts | Financial Report 2005
b. Additional information
(in millions of euros)                                                31.12.2005                                                     31.12.2004
                                             Trading     Available-     Held-to-    Portfolio     Total     Trading     Available-     Held-to-     Portfolio    Total
                                            securities    for-sale      maturity    securities             securities    for-sale      maturity    securities
                                                         securities    securities                                       securities    securities

 Treasury bills and similar securities
Gross value (1)                               14,040         347          4,171                  18,558     12,832          714          4,725                  18,271
Premiums/discounts                                             8             34                      42                      16             39                      55
Accrued interest                                               7            115                     122                      10            122                     132
Net carrying value                            14,040         362          4,320                  18,722     12,832          740          4,886                  18,458
Market value of trading and
available-for-sale securities                 14,040         381                                            12,832          761
 Debentures and other fixed-income securities
Gross value                                    2,018     39,439           9,742                  51,199           50    38,075           8,341                  46,466
Premiums/discounts                                            81             67                     148                      50             30                      80
Accrued interest                                             (30)           250                     220                     (22)           239                     217
Impairment                                                   (12)                                   (12)                      (4)                                   (4)
Net carrying value                             2,018     39,478         10,059                   51,555           50    38,099           8,610                  46,759
Market value of trading and
available-for-sale securities                  2,018     39,465                                                   50    38,122
 Equities and other variable-yield securities
Gross value                                                2,595                    10,280       12,875                   2,988                      9,814      12,802
Accrued income                                                                            4           4                        1                        13          14
Impairment (2)                                                (36)                   (1,136)     (1,172)                     (96)                   (1,328)     (1,424)
Net carrying value                                         2,559                      9,148      11,707                   2,893                      8,499      11,392
Market value of available-for-sale
securities and value in use
for portfolio securities                                    3,358                    13,502                                3,166                      9,495
(1) The gross values shown under the “available-for-sale” securities and “held-to-maturity” securities columns correspond to the redemption value.
(2) The net change in the balance of impairment of portfolio securities at 31 December 2005 amounted to €192 million.
    This change consists of a net recovery of €201 million and a foreign exchange loss of €9 million.




                                                                                                                         Caisse des Dépôts | Financial Report 2005        | 71 |
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         Note 4 - Participating interests - Movements during the year
         (in millions of euros)                                                                              31.12.2005
                                                                            31.12.2004    Acquisitions/    Disposals/      Other      31.12.2005
                                                                                            charges        recoveries     changes
                                             (1)
          Long-term equity interests
         Gross value                                                             8,740             615            (66)                   9,289
         Impairment                                                               (166)             (11)           25                     (152)
         Net carrying value                                                      8,574             604            (41)                   9,137
          Advances and related receivables
         Gross value                                                               568              59            (89)        (153)        385
         Impairment                                                               (175)              (2)            2          153          (22)
         Net carrying value                                                       393               57            (87)           0         363
         Participating Interests                                                 8,967             661           (128)                   9,500

         (1) The principal movements for the year are detailed in Note 5.




| 72 |     Caisse des Dépôts | Financial Report 2005
Note 5 - Principal participating interests
(in millions of euros)                            31.12.2004                                                                       31.12.2005
                                             Participating    Advances      Interests    Interests    Participating  Changes in      Advances Total impairment      Net total   % holding
                                              interests      and related   acquired in   disposed       interests   advances and and related      participating      end of       2005
                                             gross value     receivables      2005       of in 2005   end of period receivables in receivables at interests and       2005
                                                                                                                                                              (1)
                                                             gross value                               gross value      2005       end of period receivables
                                                                                                                                    gross value

Participating interests
 Principal participating interests and movements for the year
AREVA*                                             360                                                      360                                                         360           3.6
OSEO BDPME                                         193                                                      193                                                         193         43.7
C3D                                                971             194                                      971                           194                         1,165         100
CDC Holding Finance                              2,907                                                    2,907                                                       2,907         100
CDC KINEON                                         100                                                      100                                           (26)           74          100
CDC ENTREPRISES                                  1,204                                                    1,204                                                       1,204         100
CNP ASSURANCES*                                    737                                                      737                                                         737         36.5
COMPAGNIE
NATIONALE
DU RHONE                                            207                           28                        235                1              1                         236         29.4
DEXIA *                                             944                          143                      1,087                                                       1,087          6.5
GALAXY SARL                                          23                            5                         28                                                          28           60
SCIC HABITAT                                         18            128                         (18)                                        128                          128
SCIRZAC                                              53             14                                        53             (1)            13            (34)           32          100
SICOVAM HOLDING                                      51                                                       51                                                         51          8.8
THEATRE DES
CHAMPS-ELYSEES                                       54               2                                      54                1              3           (36)            21       99.9
SNI(2)                                              582                            51                       633                                                          633      99.97
SOGEPOSTE                                            42                                        (12)          30                                                           30         35
CDC PU(3)                                             9                          350                        359                                                          359       100
SOFARIS                                                            153                                                   (153)
SCI Ile-de-France N° 2                                              24                                                     (24)                                                     89.3
Total principal
participating interests,
advances & receivables                           8,455             515           577          (30)        9,002          (176)            339            (96)         9,245
Other long-term equity
interests and movements
in advances & receivables                           285              53            38         (36)          287             (7)             46           (78)            255
Total participating interests,
advances & receivables                           8,740             568           615          (66)        9,289          (183)            385           (174)         9,500
* Participating interests in listed companies.
(1) Impairment is split into €152 million of impairment in respect of interests and €22 million in impairment in respect of related receivables.
(2) The €51 million increase in SNI relates to an addition to the acquisition price.
(3) Creation of CDC Projets Urbains (formerly Solidec) a wholly-owned Caisse des Dépôts’ subsidiary - subscription to the capital increase of €350 million (of which
€170 million unpaid).




                                                                                                                                      Caisse des Dépôts | Financial Report 2005             | 73 |
Central Sector




               Note 6 - Fixed assets
               (in millions of euros)                                                                                   31.12.2005
                                                                         31.12.2004      Reclas-         01.01.2005 Acquisitions/   Disposals/   Transfers    31.12.2005
                                                                         published      sification      after reclass. charges      recoveries   between
                                                                                                                                                 captions

                Intangible fixed assets
               Fixed assets in the course of creation:
               development costs                                                 35                            35            52                       (32)           55
               Licences, software and concessions (net)                          27                1           28           (28)                       32            32
               - gross value                                                    152                2          154             4                        32           190
               - amortisation and impairment                                   (125)              (1)        (126)          (32)                                   (158)
               Gross intangible fixed assets                                   187                 2          189            56                                    245
               Amortisation and impairment
               of intangible fixed assets                                     (125)               (1)        (126)          (32)                                  (158)
               Total net intangible fixed assets                                 62                1           63            24                                      87
                Tangible fixed assets
               Operating tangible fixed assets*
               Gross operating tangible fixed assets                           488               (2)          486            11                                    497
               Depreciation and impairment
               of operating tangible fixed assets                             (244)              20          (224)          (14)                                  (238)
               Net operating tangible fixed assets                             244               18           262            (3)                                   259
               Investment property*
               Gross investment property                                     1,545                          1,545          288          (152)          (1)       1,680
               Depreciation and impairment
               of investment property                                         (134)              (21)        (155)           (6)           15                     (146)
               Net investment property                                       1,411               (21)       1,390          282          (137)           (1)      1,534
               Total net tangible fixed assets                               1,655                (3)       1,652          279          (137)           (1)      1,793

               * Details of movements and reclassifications are provided in Notes 6-a and 6-b.




| 74 |   Caisse des Dépôts | Financial Report 2005
a. Operating tangible fixed assets
(in millions of euros)                                                                                      31.12.2005
                                                                            31.12.2004       Reclas-       01.01.2005 Acquisitions/     Transfers     31.12.2005
                                                                            published       sification    after reclas- charges         between
                                                                                                            sification                  captions

Gross values
Fixed assets in the course of construction                                          29                           29              10           (10)              29
Land, buildings and fixtures                                                      390               (1)         389                            10              399
Land                                                                               11                1           12                                             12
Buildings by components                                                           379               (2)         377                            10              387
- roof/façade                                                                                                    41                                             41
- major maintenance                                                                                               6                                              6
- shell                                                                                                         170                                            170
- fixtures                                                                                                       67                            10               77
- technical installations                                                                                        93                                             93
Furniture, fittings, machinery and equipment                                        69              (1)          68                1                            69
Gross operating tangible fixed assets                                             488               (2)         486              11                            497
Depreciation and impairment
Depreciation and impairment of land, buildings and fixtures (184)                                  20         (164)            (11)                           (175)
Buildings by components                                      (184)                                 20          (164)            (11)                          (175)
- roof/façade                                                                                                    (17)             (1)                           (18)
- major maintenance                                                                                                (4)                                            (4)
- shell                                                                                                          (33)            (3)                            (36)
- fixtures                                                                                                       (52)            (4)                            (56)
- technical installations                                                                                        (58)            (3)                            (61)
Depreciation of furniture, fittings, machinery and equipment (60)                                               (60)             (3)                           (63)
Depreciation and impairment of operating
tangible fixed assets                                                            (244)             20          (224)           (14)                           (238)
Net operating fixed assets
Fixed assets in the course of construction (net)                                    29                           29             10            (10)              29
Land, buildings and fixtures (net)                                                206              19           225            (11)            10              224
Land                                                                               11               1            12                                             12
Buildings by components                                                           195              18           213             (11)           10              212
- roof/façade                                                                                                    24               (1)                           23
- major maintenance                                                                                               2                                              2
- shell                                                                                                         137              (3)                           134
- fixtures                                                                                                       15              (4)           10               21
- technical installations                                                                                        35              (3)                            32
Furniture, fittings, machinery and equipment (net)                                   9              (1)           8              (2)                             6
Net operating tangible fixed assets                                               244              18           262              (3)                           259

The Central Sector adopted CRC Regulation No. 2002-10 relating to the amortisation, depreciation and impairment of assets at 1 January 2005. It elected for
application of the components method to all replacement and maintenance expenditure.
The impact of the change in the depreciation periods for operating properties was €19 million, with a corresponding entry in equity.
A concession classified as a tangible fixed asset was transferred to intangible fixed assets (gross value of €2 million and depreciation of €1 million).




                                                                                                                            Caisse des Dépôts | Financial Report 2005   | 75 |
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               Note 6 - Continued
               b. Investment property
               (in millions of euros)                                                                                  31.12.2005
                                                                        31.12.2004     Reclas-          01.01.2005 Acquisitions/   Disposals/    Transfers    31.12.2005
                                                                        published     sification       after reclass. charges      recoveries    between
                                                                                                                                                 captions

               Gross values
               Fixed assets in the course of construction                        3            (1)               2            7                          (1)            8
               Land, buildings and fixtures                                   314                            314                         (20)            2         296
               Land                                                            58              1              59                           (3)                      56
               Buildings by components                                        256             (1)            255                         (17)            2         240
               - roof/façade                                                                                  29                           (4)                      25
               - major maintenance                                                                             5                                                     5
               - shell                                                                                       116                          (5)                      111
               - fixtures                                                                                     57                          (3)            2          56
               - technical installations                                                                      48                          (5)                       43
               Forests and land reserves                                       20                             20                          (1)                       19
               Furniture, fittings, machinery and equipment                                    1                1                                                      1
               Interests in holding companies
               for investment property                                     1,208                           1,208          281          (131)            (2)      1,356
               Gross investment property                                    1,545                           1,545          288         (152)           (1)        1,680
               Depreciation and impairment
               Depreciation and impairment
               of land, buildings and fixtures                               (112)          (21)            (133)           (6)           13                      (126)
               Land                                                             (8)                             (8)                        5                           (3)
               Buildings by components                                       (104)          (21)            (125)           (6)            8                       (123)
               - roof/façade                                                                                  (13)          (1)            1                         (13)
               - major maintenance                                                                              (2)         (1)                                        (3)
               - shell                                                                                        (26)          (2)            2                         (26)
               - fixtures                                                                                     (50)          (1)            2                         (49)
               - technical installations                                                                      (34)          (1)            3                         (32)
               Impairment in respect of SPIPL (gross)
               & related receivables                                          (22)                            (22)                         2                        (20)
               Depreciation and impairment
               of investment property                                        (134)          (21)            (155)           (6)           15                      (146)
               Net investment property
               Fixed assets in the course of construction (net)                  3            (1)               2            7                          (1)            8
               Land, buildings and fixtures (net)                             202           (21)             181            (6)           (7)            2         170
               Land                                                            50             1               51                            2                       53
               Buildings by components                                        152           (22)             130            (6)            (9)           2         117
               - roof/façade                                                                                  16            (1)            (3)                      12
               - major maintenance                                                                             3            (1)                                      2
               - shell                                                                                        90            (2)           (3)                       85
               - fixtures                                                                                      7            (1)           (1)            2           7
               - technical installations                                                                      14            (1)           (2)                       11
               Forests and land reserves (net)                                 20                             20                          (1)                       19
               Furniture, fittings, machinery and equipment (net)                                  1            1                                                      1
               Interests in holding companies for investment
               property & related receivables (net)(1)                     1,186                           1,186          281          (129)            (2)      1,336
               Net investment property                                     1,411            (21)           1,390          282          (137)           (1)       1,534

               The Central Sector adopted CRC Regulation No. 2002-10 relating to the amortisation, depreciation and impairment of assets at 1 January 2005.
               It elected for application of the components method to all replacement and maintenance expenditure.
               The impact of the change in the depreciation periods for investment properties was -€21 million, with a corresponding entry in equity.
               (1) The main movements for the period are detailed in Note 6-c.


| 76 |   Caisse des Dépôts | Financial Report 2005
c. Principal participating interests - holding companies for investment property

(in millions of euros)                          31.12.2004                                             31.12.2005
                                            Participating    Advances      Interests   Participating Changes in   Advances        Impairment,     Net total
                                              interests     and related   acquired in interests at advances &      & related      participating    2005
                                                            receivables      2005     end of period receivables receivables at   interests and
                                                                                                       in 2005   end of period    receivables

Participating interests in holding companies
for investment property
 Significant participating interests in holding companies for investment property & principal movements
AIH France                                           18             56                         18           34            90                            108
ING DUTCH RETAIL FUND N.V.                           21                           1            22                                                        22
ING DUTCH RETAIL FUND III                                                        10            10                                                        10
ING DUTCH OFFICE FUND N.V.                           15                                        15                                                        15
LE MARQUIS SA                                        13              3                         13            (3)                                         13
PROLOGIS PAN
EUROPEAN FUND                                        25                                        25                                                        25
SAS DEFENSE CB3                                                                  24            24             5            5                             29
SAS POINT DU JOUR                                    20             43                         20            (3)          40                             60
SAS TOUR DESCARTES                                   38             50                         38            (6)          44                             82
SAS VELIZY (1)                                                                    6             6           23            23                             29
SASU DANTE                                            9             22           22            31          (22)                                          31
SASU FONAE                                           38              3                         38             7           10                             48
SASU LOGISITIS II                                     7              8            5            12             8           16                             28
SEF FORETS DURABLES                                                              15            15                                                        15
SCI BOUCICAUT (1)                                                   61                                        3           64                             64
SCI EURALILLE (S3C LILLE) (1)                                       24                                       (2)          22                             22
SCI FONDIS                                             4            14                          4             4           18                             22
SCI JEAN JAURES TOULOUSE (1)                                        19                                                    19                             19
SITQ LES TOURS                                       28                                        28                                                        28
SCI LOGISTIS                                         39             24                         39                         24                             63
SCI SILOGIS (1)                                                     55                                       (1)          54                             54
SCI SOCLE ARCHE
DE LA DEFENSE (1)                                                  15                                        (1)         14                (8)            6
SCI TOUR LILLE (1)                                                 10                                        (1)          9                (2)            7
FONCIERE ANATOLE FRANCE                             159           289                        159             (9)        280                             439
Total principal participating interests
and advances & receivables - holding
companies for investment property       434                       696            83          517            36          732              (10)        1,239
Other long-term equity holdings in holding
companies for investment property
and movements in advances/receivables 55                            23                         55           29            52             (10)            97
Total participating interests in holding
companies for investment property
and related advances                     489                      719            83          572            65          784              (20)        1,336

(1) participating interests < €1 million.




                                                                                                                     Caisse des Dépôts | Financial Report 2005   | 77 |
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               Note 7 - Prepayments and accrued income and other assets
               (in millions of euros)                                                                                               31.12.2005             31.12.2004
               Prepaid expenses                                                                                                                1                        2
               Accrued income                                                                                                                 11                       11
               Forward financial instrument and currency adjustment accounts                                                                  13                      190
               Other prepayments and accrued income                                                                                           18                       21
               Prepayments and accrued income                                                                                                 43                      224
               Sundry debtors                                                                                                                375                      300
               Settlement accounts relating to transactions in securities                                                                      10                        6
               Stocks and similar (Forests)                                                                                                    37                      37
               Impairment of other assets                                                                                                     (12)                      (8)
               Other assets                                                                                                                  410                      335
               Prepayments and accrued income and other assets                                                                               453                      559




               Note 8 - Interbank and similar transactions -
                        Amounts owed to credit institutions
               (in millions of euros)                                                                                               31.12.2005             31.12.2004
                                        (1)
               Ordinary deposits                                                                                                          13,913                  5,236
               Savings funds current accounts                                                                                              2,335                  1,257
               Accrued interest                                                                                                                9                     13
               Amounts owed to credit institutions repayable on demand                                                                    16,257                  6,506
                                              (2)
               Term accounts and loans                                                                                                       638                    961
               Securities given under repurchase agreements with actual delivery                                                          17,158                 17,626
               Accrued interest                                                                                                               57                     56
               Amounts owed to credit institutions with agreed maturity dates                                                             17,853                 18,643
               Amounts owed to credit institutions                                                                                        34,110                 25,149

               (1) Including ordinary account - CNCE (€6,601 million) and Banque Postale (€5,771 million).
               (2) The reduction in term accounts and loans relates to CDC Holding Finance (-€90 million), Crédit Logement (-€223 million) and CNCE (-€38 million).




| 78 |   Caisse des Dépôts | Financial Report 2005
Note 9 - Customer transactions
(in millions of euros)                                                                                                        31.12.2005              31.12.2004
                                                       (1)
Ordinary deposit liabilities to customers                                                                                          32,151                   28,502
Loans from financial sector customers                                                                                                  197                     173
Escrow accounts                                                                                                                      2,916                   2,858
Term deposits(2)                                                                                                                     9,538                  15,702
Securities given under repurchase agreements with actual delivery                                                                      619                      80
Other sums owed to customers                                                                                                                                     3
Accrued interest(2)                                                                                                                    493                     504
Other amounts owed to customers                                                                                                    13,763                   19,320
Customer transactions                                                                                                              45,914                   47,822

(1) The increase in ordinary deposits of €3,649 million is mainly due to the increase in the deposits of Notaries (€3,284 million), of court-appointed agents
and nominees (€141 million), of managed funds (€512 million) and of the ERAFP (Civil Service supplementary Pension Scheme) (€247 million).
The figure of €32,151 million mainly consists of deposits of notaries (€22,806 million), of court-appointed agents and nominees (€4,496 million), of the FRR
(pension reserve fund) account (€1,211 million), of managed funds (€652 million) and of the ERAFP (€247 million).
(2) The reduction in term deposits of €6,164 million is mainly explained by the reduction in the FRR term account (-€5,813 million).
The total amount outstanding for the FRR at 31/12/05 was €5,500 million (€11,313 million at 31/12/2004).



Note 10 - Debts evidenced by certificates
(in millions of euros)                                                                                                        31.12.2005              31.12.2004
Medium-term notes                                                                                                                      229                      220
Other negotiable debt instruments(1)                                                                                                 4,278                    3,098
Accrued interest(2)                                                                                                                      (5)                      9
Interbank market securities and negotiable debt instruments                                                                          4,502                    3,327
Debts evidenced by certificates                                                                                                      4,502                    3,327

(1) Total certificates of deposit outstandings rose by €1,212 million during 2005.
(2) The majority of these negotiable debt instruments were issued at a discount, with the interest recognised under liabilities as prescribed by the standards.




Note 11 - Accruals and deferred income and other liabilities
(in millions of euros)                                                                                                        31.12.2005              31.12.2004
Deferred income                                                                                                                          40                         44
Accrued expenses                                                                                                                         45                         34
Forward financial instrument and currency adjustment accounts                                                                            27
Other accruals and deferred income                                                                                                       36                         12
Accruals and deferred income                                                                                                           148                          90
Premiums on written options                                                                                                             1                        2
Liabilities for securities(1)                                                                                                      15,138                   12,882
Other creditors(2)                                                                                                                    828                      543
Other liabilities                                                                                                                  15,967                   13,427
Accruals and deferred income and other liabilities                                                                                 16,115                   13,517

(1) Relates to the liability for securities borrowed from the savings funds (cf. Note 3-a).
(2) Including amounts owed to suppliers (€132 million), tax liabilities (€51 million), and social security and other employee-related liabilities (€168 million).




                                                                                                                               Caisse des Dépôts | Financial Report 2005   | 79 |
Central Sector




         Note 12 - Provisions
         (in millions of euros)                                                                                                           31.12.2005
                                                                                              31.12.2004      Charges       Recoveries    Recoveries       Other        31.12.2005
                                                                                              published                       used                       changes (5)

         Provisions for employee benefit commitments                                                   60            74                          (29)                         105
         Pensions                                                                                      23                                          (3)                          20
         Long-service awards                                                                           11             5                                                         16
         Framework agreement (1)                                                                       26            69                          (26)                           69
         Provisions for potential property liabilities                                                 25               1           (1)                         (24)                1
                                        (2)
         Provision for major repairs                                                                   17                                                       (17)
         Other                                                                                          8               1           (1)                           (7)               1
         Provisions for counterparty risks                                                           149             36             (2)          (43)           (10)          130
                                                                                   (3)
         Potential execution risks in respect of signature commitments                                 95            28                          (40)                           83
         Potential counterparty risks in respect of loans                                              23             1                            (1)                          23
         Other potential counterparty risks                                                            31             7             (2)            (2)          (10)            24
                                  (4)
         Provision for taxes                                                                         422                                         (90)                         332
         Other provisions                                                                              36               2           (6)          (12)            (8)            12
         Potential liabilities in respect of participating interests                                   31               1           (4)          (11)             (8)               9
         Other                                                                                          5               1           (2)            (1)                              3
         Provisions                                                                                  692            113             (9)        (174)            (42)          580

         (1) Provisions for employee benefit commitments
         As the framework agreement terminated at 31 December 2005, the provision at 31 December 2004 of €26 million was recovered in full.
         A provision of €69 million was set up for the new 2006-2008 framework agreement.
         The provision of €69 million at 31 December 2005 is split between public-sector personnel (€41 million), private-sector personnel (€24 million), and Caisse des Mines
         personnel absorbed in May 2005 (€4 million).
         An additional amount of €33 million relating to new post-employment benefits will be recognised over the beneficiaries'remaining working lives.

         (2) Provisions for potential property liabilities (provision for major repairs):
         Following the adoption, at 1 January 2005, of CRC Regulation No. 2002-10, relating to the amortisation, depreciation and impairment of assets, the Central Sector
         elected for application of the components method to expenditure on major maintenance and therefore wrote back to equity the provisions for expenditure on major
         maintenance in existence at 31 December 2004 of €17 million.

         (3) Provisions for potential counterparty risks:
         The provisions mainly comprise interest subsidies in respect of loans made by the Savings Funds: “Housing Rehabilitation” (Réhabilitation de l’habitat) (€52.7 million),
         PRU (€14 million) and ICME (€7.7 million).

         (4) Provisions for taxes:
         This provision was established in order to cover the potential tax charge relating to rollover relief on transactions involving exchanges of securities (public exchange
         offerings and mergers).
         The French 2004 Amending Finance Law (Loi de Finance Rectificative), in the Marini amendment thereto, envisages progressively reducing until 2007 the tax rate
         applicable to gains on disposals of certain long-term equity interests (titres de participation) from 19% to nil. At 31 December 2005, the deferred tax benefit
         amounted to €90 million.

         (5) The balance of €42 million of other changes relates to the recovery of the provision for major repairs of €17 million impacting on equity
         (Note 13), and the reclassification of provisions for potential liabilities as impairment of doubtful loans and advances (Note 2).




| 80 |     Caisse des Dépôts | Financial Report 2005
Note 13 - Changes in equity
                                              General           Reva- Regulated            Retained         Interim       Profit for       Equity        Fund for         Equity
                                              reserve          luation reserves &          earnings        dividend      the period    (excluding         general     (including
                                                              reserve investment                                                           FGBR)         banking          FGBR)
(in millions of euros)                                                     grants                                                                           risks

Equity at 31 December 2003                      8,803              34             18             35                           974          9,864             608        10,472
Appropriation of 2003 profit                      447                                          527                           (974)
2003 dividend paid in 2004                                                                    (524)                                         (524)                          (524)
Other changes                                                                   (10)             (3)                                          (13)                           (13)
2004 profit                                                                                                                 2,460          2,460                          2,460
Interim dividend                                                                                              (405)                          (405)                          (405)
Equity at 31 December 2004                      9,250              34              8             35           (405)         2,460         11,382             608         11,990
                               (1)
Impact of CRC 2002-10                                                                            15                                             15                            15
Impact of CRB 90-01 and CB 94-07 (2)                                                              5                                              5                             5
Equity at 1 January 2005                        9,250              34              8             55           (405)         2,460         11,402             608         12,010
Appropriation of 2004 profit                    1,552                                           908                        (2,460)
2004 dividend paid in 2005(3)                                                                  (877)           405                          (472)                          (472)
Other changes (3) (4)                               16                                           (30)                                         (14)                           (14)
2005 profit                                                                                                                 1,294          1,294                          1,294
Equity at 31 December 2005                    10,818               34              8             56               0         1,294        12,210              608        12,818

(1) The Central Sector applied CRC Regulation No. 2002-10, relating to the amortisation, depreciation and impairment of assets, at 1 January 2005. It elected for application of
the components method to all replacement and maintenance expenditure.
This change in accounting method resulted in a positive impact on equity of €15 million, broken down into: recovery of the existing provisions for major repairs (+€17 million)
and into the change in depreciation periods (-€2 million). This overall impact is reduced to €1 million after recognition of provisions for major repairs recorded in 2003 by
deduction from equity (-€14 million).

(2) This change in method resulted in a positive impact on equity of €5.6 million, broken down into an impact relating to the deferral process (€8.4 million) and an impact of CRIS
(contribution representing French corporation tax) (€2.9 million) on the amortisation by the yield-to-maturity method of the premiums/discounts on securities and equalisation
payments in respect of swaps.

(3) The dividends distributed in 2005 to the State in respect of the 2004 financial year amounted to 331/3% of the consolidated earnings attributable to the group after
deducting the amount of the gain already paid on 31 December 2004 to the French Treasury of €405 million, i.e. a base of €1,507 million.
The amount actually paid to the State in 2005 amounted to €472 million, i.e. €502 million in respect of the dividend distributed, reduced by the debt waiver granted
to Sagitrans at the State’s request (€30 million).

(4) In 1996, the State asked Caisse des Dépôts to make a takeover bid for the shares of Crédit Foncier de France, under a nominee arrangement to be repaid in full
on the creation of Caisse Nationale de Crédit Foncier (CNCF). In consideration, Caisse des Dépôts was to pay an exceptional dividend of €15.7 million (shown under
liabilities in 1997).
The creation of CNCF never took effect, and this dividend no longer is required to be paid, and it has been decided to appropriate it to general reserve.




                                                                                                                                Caisse des Dépôts | Financial Report 2005             | 81 |
Central Sector




               Note 14a - Breakdown of credit institution outstandings
               (in millions of euros)                                                      31.12.2005
                                                           Sound gross     Doubtful gross Compromised    Impairment       Total
                                                           outstandings     outstandings doubtful gross deducted from
                                                                                          outstandings     assets
               France                                            10,729               10           143           (153)    10,729
               Europe                                                57                                                       57
               Other                                                  3                                                        3
               Breakdown by geographical region                  10,789               10           143           (153)    10,789
               Less than 3 months                                10,500               10           143           (153)    10,500
               From 3 months to 1 year                              273                                                      273
               From 1 year to 5 years                                10                                                       10
               More than 5 years                                      6                                                        6
               Breakdown by residual term                        10,789               10           143           (153)    10,789
               Impairments                                                            10                                       10
               Reversals of impairments                                                             (10)                      (10)
               Reclassification of impairment in respect
               of participating interests                                                          153                       153
               Impairment deducted from assets                                        10           143                       153


               Note 14b - Breakdown of customer outstandings
               (in millions of euros)                                                      31.12.2005
                                                           Sound gross     Doubtful gross Compromised    Impairment       Total
                                                           outstandings     outstandings doubtful gross deducted from
                                                                                          outstandings     assets
               France                                              9,383              47            79           (123)     9,386
               Other                                                  32                            35             (17)       50
               Breakdown by geographical region                    9,415              47           114           (140)     9,436
               Less than 3 months                                  8,022              39           111           (136)     8,036
               From 3 months to 1 year                               111               1                            (1)      111
               From 1 year to 5 years                                438               3             2              (2)      441
               More than 5 years                                     844               4             1              (1)      848
               Breakdown by residual term                          9,415              47           114           (140)     9,436
               Impairments                                                            38            76                       114
               Charges                                                                12            26                        38
               Reversals of impairments                                                (5)           (7)                     (12)
               Reclassification doubtful / compromised                               (15)           15
               Impairment deducted from assets                                        30           110                       140




| 82 |   Caisse des Dépôts | Financial Report 2005
Note 14c - Fixed-income securities (available-for-sale
           and held-to-maturity securities)

(in millions of euros)                                  31.12.2005
                                      Sound gross       Impairment                Total
                                      outstandings     deducted from
                                                           assets
Euro                                         52,822                (12)             52,810
USD                                               7                                      7
Other                                         1,402                                  1,402
Breakdown by currency                        54,231                (12)             54,219
Less than 3 months                           23,389                 (4)             23,385
From 3 months to 1 year                      15,563                 (6)             15,557
From 1 year to 5 years                       10,062                 (1)             10,061
More than 5 years                             5,217                 (1)              5,216
Breakdown by residual term                   54,231                (12)             54,219
AAA                                          19,416                 (4)             19,412
AA                                           22,140                 (4)             22,136
A                                            11,219                 (1)             11,218
BBB                                           1,034                                  1,034
Unrated                                         422                 (3)                419
Breakdown by rating                          54,231                (12)             54,219
Impairments                                      (4)                                       (4)
Charges                                          (8)                                       (8)
Impairment deducted from assets                 (12)                                      (12)




                                                            Caisse des Dépôts | Financial Report 2005   | 83 |
Central Sector




               Note 15a - Balance sheet items by currency
               (in millions of euros)                             Euro    USD        GBP         JPY    Other     Total

                Assets
               Advances and loans to credit institutions        10,661     86                     37        5    10,789
               Advances and loans to customers                   9,436                                            9,436
               Trading securities
               Treasury bills and similar securities            14,040                                           14,040
               Debentures and other fixed-income securities      2,018                                            2,018
               Available-for-sale securities
               Treasury bills and similar securities               362                                              362
               Debentures and other fixed-income securities     38,069      7                   1,402            39,478
               Held-to-maturity securities
               Treasury bills and similar securities             4,320                                            4,320
               Debentures and other fixed-income securities     10,059                                           10,059

                Liabilities
               Amounts owed to credit institutions              33,561    169            114     166      100    34,110
               Amounts owed to customers                        45,666     85            15       19      129    45,914
               Debts represented by certificates
               Other fixed-income securities                     3,960    370                             172     4,502




               Note 15b - Balance sheet items by period to maturity
                                                              3 months     3 months        1 year to More than    Total
               (in millions of euros)                           or less     to 1 year       5 years    5 years

                Assets
               Advances and loans to credit institutions
               with agreed maturity dates                       10,500            273            10         6    10,789
               Advances and loans to customers                   8,036            111           441       848     9,436
               Available-for-sale securities
               Treasury bills and similar securities                               130                    232       362
               Debentures and other fixed-income securities     23,280          13,086         1,710    1,402    39,478
               Held-to-maturity securities
               Treasury bills and similar securities                51           2,261         1,773      235     4,320
               Debentures and other fixed-income securities         53              80         6,577    3,349    10,059

                Liabilities
               Amounts owed to credit institutions
               with agreed maturity dates                       34,108              2                            34,110
               Amounts owed to customers                        45,914                                           45,914
               Debts represented by securities
               Other fixed-income securities                     1,978           2,519           10        (5)    4,502




| 84 |   Caisse des Dépôts | Financial Report 2005
Note 16 - Off-balance sheet commitments relating to spot and
          forward foreign exchange and foreign currency lending
          and borrowing transactions
(in millions of euros)                                                                                                   31.12.2005           31.12.2004
Spot foreign exchange transactions
Euros purchased not yet received                                                                                                      6                  2
Foreign currencies purchased not yet received                                                                                         3                 12
Euros sold not yet delivered                                                                                                          3                 12
Foreign currencies sold not yet delivered                                                                                             6                  2
Forward foreign exchange transactions
Euros receivable against deliverable foreign currencies
- euros receivable                                                                                                                 3,000            2,477
- foreign currencies to be delivered                                                                                               3,038            2,366
Foreign currencies receivable against deliverable euros
- foreign currencies receivable                                                                                                     880             1,051
- euros to be delivered                                                                                                             939               973
Unaccrued premiums/discounts
Receivable                                                                                                                           11                 12
Payable                                                                                                                               2




Note 17 - Forward financial instruments and options
(in millions of euros)                                                               31.12.2005
                                                                     Trading                             Treasury/Hedging
                                                        Commitments       Commitments            Commitments Commitments
                                                    given - Purchases/       received -      given - Purchases/       received -
                                                            Borrowings     Sales/Loans               Borrowings     Sales/Loans

 Forward financial instruments
Organised markets
Interest-rate contracts                                                 132                     132
Other contracts                                                          96                      19
Over-the-counter markets
Interest-rate swaps(1)                                              14,642                   14,642                               24,896           24,896
Fair Value                                                             494                      495                                  503              393

 Options
Over-the-counter markets
Caps and floors                                                         341                     341                                 351               305
Fair Value                                                                0                       0                                   0                 0
Other options                                                                                                                        20                10

(1) These transactions are mirrored, for the most part, as a counterpart to the transactions contributed to the Ixis CIB group.




                                                                                                                          Caisse des Dépôts | Financial Report 2005   | 85 |
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               Note 18 - Credit risks
               Signature commitments
               (in millions of euros)                                                        31.12.2005
                                                                                           Sound gross
                                                                                           outstandings
               France                                                                            10,517
               Europe                                                                                83
               United States                                                                         35
               Other                                                                                 23
               Breakdown by geographical regions                                                 10,658



               Forward financial instruments and options (over-the-counter transactions)
               Breakdown of commitments received (sales/loans)


               (in millions of euros)                                                        31.12.2005
                                                                                           Sound gross
                                                                                           outstandings
               France                                                                            24,860
               Europe                                                                            11,462
               United States                                                                      3,672
               Other                                                                                200
               Breakdown by geographical regions                                                 40,194




| 86 |   Caisse des Dépôts | Financial Report 2005
Note 19 - Forward financial instruments and options
(in millions of euros)                                      31.12.2005
By currency                             Euro         USD           JPY            Other             Total

 Forward financial instruments
Interest-rate agreements                              264                                            264
Interest-rate swaps given              35,434         175         2,806            1,123          39,538
Interest-rate swaps received           35,434         175         2,806            1,123          39,538
Other contracts                           126          19                                            145

 Options
Caps and floors written                  656                                           36             692
Caps and floors received                 610                                           36             646




(in millions of euros)                                      31.12.2005
By residual term                 Less than From 3 months From1 year          More than              Total
                                 3 months        to 1 year to 5 years          5 years

 Forward financial instruments
Interest-rate agreements              264                                                            264
Interest-rate swaps given          19,966          14,026        4,073             1,473          39,538
Interest-rate swaps received       19,966          14,026        4,073             1,473          39,538
Other agreements                      145                                                            145

 Options
Caps and floors written                               656           36                                692
Caps and floors received                              610           36                                646




                                                                         Caisse des Dépôts | Financial Report 2005   | 87 |
Central Sector




               Note 20 - Interest receivable and payable and similar income and
                         charges in respect of treasury and interbank transactions
               (in millions of euros)                                                                                                 31.12.2005              31.12.2004
               Interest receivable from central and post office banks                                                                           18                     18
               Interest receivable on ordinary overdrafts                                                                                      129                    104
               Interest receivable on other loans and securities received under resale agreements                                               25                     32
               Interest receivable on securities received under resale agreements with actual delivery                                           7                      5
               Premium/discount income                                                                                                          31                     18
               Other interest receivable and similar income                                                                                     14                     12
               Interest receivable and similar income in respect of treasury and interbank transactions                                        224                    189
               Interest payable on ordinary deposits                                                                                          (113)                     (66)
               Interest payable on other loans and securities given under repurchase agreements                                                 (17)                      (8)
               Interest payable on securities given under repurchase agreements with actual delivery                                          (266)                   (260)
               Premium/discount charges                                                                                                           (1)                     (4)
               Other interest payable and similar charges                                                                                         (7)                     (6)
               Interest payable and similar charges in respect of treasury and interbank transactions                                         (404)                  (344)



               Note 21 - Interest receivable and payable and similar income and
                         charges in respect of customer transactions
                (in millions of euros)                                                                                                31.12.2005              31.12.2004
                                                                     (1)
               Interest receivable on ordinary overdrafts                                                                                        50                   272
               Interest receivable on customer credit                                                                                            72                     72
               Interest on cash credits                                                                                                           7                      5
               Interest on investment credits                                                                                                    14                     17
               Interest on housing credits                                                                                                       15                      8
               Interest on other customer credits                                                                                                36                     42
               Interest receivable on other loans and securities received under resale agreements                                                 2                       5
               Other interest receivable and similar income                                                                                       1                       4
               Doubtful interest                                                                                                                  1                       2
               Interest receivable and similar income in respect of customer transactions                                                      126                    355
               Interest payable on ordinary deposit accounts                                                                                  (324)                   (265)
               Interest payable on escrow accounts                                                                                              (35)                    (32)
               Interest payable on term deposits, loans and securities given under repurchase agreements (2)                                  (231)                   (374)
               Interest payable on securities given under repurchase agreements with actual delivery                                              (2)                     (2)
               Interest payable and similar charges in respect of customer transactions                                                       (592)                  (673)

               (1) including €46 million of interest received from ACOSS, compared with €269 million at 31 December 2004.
               The change in the interest is explained by the reduction in the average ACOSS outstanding, which amounted to €2 billion at 31 December 2005, compared with
               €12.4 billion at 31 December 2004.
               (2) including €153 million of interest paid to FRR, compared with €289 million at 31 December 2004.
               The change in the interest paid to FRR is explained by the reduction in the average outstanding for FRR long term deposits which amounted to €7.2 billion at
               31 December 2005, compared with €14.2 billion at 31 December 2004.




| 88 |   Caisse des Dépôts | Financial Report 2005
Note 22 - Interest receivable and payable and similar income
          and charges in respect of debentures and other
          fixed-income securities
(in millions of euros)                                                                                                   31.12.2005             31.12.2004
Interest receivable and similar income on available-for-sale securities                                                          675                       441
Treasury bills                                                                                                                    16                        16
Debentures                                                                                                                        41                        23
Other fixed-income securities                                                                                                    618                       402
Interest receivable and similar income on held-to-maturity securities                                                            744                       787
Treasury bills                                                                                                                   301                       329
Debentures                                                                                                                       355                       375
Other fixed-income securities                                                                                                     88                        83
Interest receivable and similar income in respect of debentures and
other fixed-income securities                                                                                                  1,419                   1,228
Interest payable on negotiable certificates of deposit                                                                            (91)                       (18)
Interest payable on medium-term notes                                                                                               (5)                        (5)
Interest payable and charges in respect of debenture loans                                                                                                     (8)
Other interest charges (1)                                                                                                        (13)                     (219)
Interest payable and similar charges in respect of debentures and
other fixed-income securities                                                                                                   (109)                      (250)

(1) Charge generated on the maturity of the ICIB arrangement - This charge is offset by the income generated on micro-hedging swaps in 2004 (cf. Note 23).




Note 23 - Other interest receivable and payable
          and similar income and charges
(in millions of euros)                                                                                                   31.12.2005             31.12.2004
Micro-hedging                                                                                                                        6                     196
                         (1)
Interest-rate swaps                                                                                                                  5                     195
Caps                                                                                                                                 1                       1
Income from debts evidenced by certificates                                                                                                                    1
Other income from transactions in securities                                                                                       49
Other interest receivable and similar income                                                                                       55                      197
Micro-hedging                                                                                                                       (3)
Multi-currency exotic swaps                                                                                                         (3)
Trading                                                                                                                                                       (5)
Borrowings of securities                                                                                                                                      (5)
Other interest payable and similar charges                                                                                          (3)                       (5)

(1) Maturity of the “ICIB arrangement” at 31 December 2004. This income was offset by the charge generated on the fixed-income securities (cf. Note 22).




                                                                                                                          Caisse des Dépôts | Financial Report 2005   | 89 |
Central Sector




               Note 24 - Income from variable-yield securities

               (in millions of euros)                                                                                                        31.12.2005                 31.12.2004
               Income from available-for-sale securities                                                                                                 50                     36
               Equities                                                                                                                                  37                     18
               UCITS                                                                                                                                     12                     17
               Other variable-yield securities                                                                                                            1                      1
               Income from portfolio securities                                                                                                         345                   258
               Income from long-term equity interests (1)                                                                                               336                   814
               Income from variable-yield securities                                                                                                    731                  1 108

               (1) Of which CDC Holding Finance: €95.3 million (€511.3 million in 2004, including €353.8 million of exceptional dividend);
               CNP Assurances: €83.9 million (€77.4 million in 2004); C3D: €49.4 million (€46.2 million in 2004);
               DEXIA: €39.8 million including €2.9 million of exceptional income (€29.5 million in 2004); and SNI: €35 million (€12 million in 2004).
               At 31 December 2004, the dividend paid by Ixis CIB amounted to €119.7 million.




               Note 25 - Commission income and charges

               (in millions of euros)                                                                                31.12.2005                            31.12.2004
                                                                                                             Income               Charges               Income          Charges
               Customer transactions                                                                                   3                                        4
               Transactions in securities                                                                                                (15)                                  (11)
               Transactions in financial instruments                                                                                                                             (1)
               Provision of services, etc.                                                                           15                  (24)                   14             (19)
                                                                                                                     18                  (39)                   18            (31)
               Commissions
                                                                                                                           (21)                                  (13)




               Note 26 - Gains or losses on trading portfolio transactions

               (in millions of euros)                                                                                                        31.12.2005                 31.12.2004
               Gains/losses on transactions in trading securities                                                                                         (1)                   1
               Gains/losses on transactions in foreign exchange instruments                                                                                3                    6
               Gains/losses on transactions in financial instruments                                                                                    (31)                  (36)
               Gains or losses on trading portfolio transactions                                                                                        (29)                  (29)




| 90 |   Caisse des Dépôts | Financial Report 2005
Note 27 - Gains or losses on available-for-sale portfolio
          transactions and similar
(in millions of euros)                                                                                31.12.2005                 31.12.2004
Gains/losses on disposal of available-for-sale securities                                                         46                    53
Other income and charges in respect of available-for-sale securities                                              (1)                    (1)
Impairment charges/recoveries in respect of available-for-sale securities                                         51                   (21)
Gains or losses on available-for-sale portfolio transactions                                                      96                    31
Gains/losses on disposal of portfolio securities                                                                343                    242
Other income and charges in respect of portfolio securities                                                      (3)                    (1)
Impairment charges/recoveries in respect of portfolio securities                                                201                    204
Gains or losses on portfolio securities transactions                                                            541                    445
Gains or losses on available-for-sale portfolio transactions and similar                                        637                    476




Note 28 - Other net banking operating income and charges

(in millions of euros)                                                          31.12.2005                         31.12.2004
                                                                            Income          Charges             Income           Charges
                                                  (1)
Gains/losses on disposals of investment property                                 26               (1)                   10                 (1)
Depreciation and impairment charges and recoveries in
respect of investment property                                                    9                (8)                    9              (9)
Income and charges in respect of investment property                            116              (34)                   110            (36)
Income and charges in respect of investment property                            151              (43)                   129            (46)
Public-interest programmes                                                                       (80)                                  (64)
Income and charges in respect of public-interest programmes                                      (80)                                  (64)
Charges reinvoiced, income retroceded and charges transferred                    15                                     12
Payments made to agents                                                                          (66)                                  (71)
Other miscellaneous operating income and charges                                 35              (72)                   27             (34)
Other operating income/charges                                                   50             (138)                   39            (105)
Other operating banking income and charges                                      201             (261)                   168           (215)
Total net banking operating income and charges                                       (60)                                 (47)

(1) Gain on disposal of an office building.




                                                                                                         Caisse des Dépôts | Financial Report 2005   | 91 |
Central Sector




               Note 29 - General operating income and charges
               a. General operating income and charges

               (in millions of euros)                                                                                                    31.12.2005         31.12.2004
               Wages and salaries                                                                                                                 (304)          (265)
               Pension charges and movements in related provisions                                                                                  (44)           (35)
               Long-service awards and movements in related provisions                                                                                (5)          (11)
               Other social security and employee-related charges                                                                                   (75)           (70)
               Company performance-related pay and profit sharing                                                                                     (6)          (12)
               Payroll taxes and similar payments                                                                                                   (39)           (37)
               Charges and recoveries of personnel expense accruals                                                                                 (41)            17
               Personnel expenses                                                                                                                 (514)          (413)
               Taxes                                                                                                                                  (8)         (10)
               Rents and rental charges                                                                                                             (28)          (28)
               Insurance premiums                                                                                                                     (1)           (1)
               Studies and research                                                                                                               (118)           (99)
               External services - miscellaneous                                                                                                    (60)          (41)
               Other expenses                                                                                                                       (21)          (20)
               Other administrative expenses                                                                                                      (236)          (199)
                               (1)
               Reinvoicing                                                                                                                         396            322
               Reinvoicing                                                                                                                         396            322
               Other operating income and charges                                                                                                                   1
               Other operating income and charges                                                                                                                   1
               Other operating income and charges                                                                                                 (354)          (289)

               (1) Reinvoicing of the provision of personnel, IT resources and logistics to Caisse des Dépôts group divisions and subsidiaries.




               b. Paid employees

                                                                                                                                         31.12.2005         31.12.2004
               Average headcount: professional and managerial staff (cadres)                                                                      1,767          1,721
               Public-sector                                                                                                                        645            627
               Private-sector                                                                                                                     1,122          1,094
               Average headcount: other staff                                                                                                     4,448          4,525
               Public-sector                                                                                                                      4,183          4,233
               Private-sector                                                                                                                       265            292
               Total average headcount                                                                                                            6,215          6,246
               Headcount at year-end: professional and managerial staff                                                                           1,771          1,714
               Public-sector                                                                                                                        644            623
               Private-sector                                                                                                                     1,127          1,091
               Headcount at year-end: other staff                                                                                                 4,363          4,451
               Public-sector                                                                                                                      4,105          4,169
               Private-sector                                                                                                                       258            282
               Total headcount at year-end                                                                                                        6,134          6,165




| 92 |   Caisse des Dépôts | Financial Report 2005
Note 30 - Net amortisation, depreciation and impairment charges in
          respect of tangible and intangible fixed assets

(in millions of euros)                                                                                                31.12.2005             31.12.2004
                                                                                       (1)
Amortisation and depreciation charges in respect of operating fixed assets                                                     (44)                   (55)
Net amortisation and depreciation charges in respect of operating fixed assets                                                 (44)                   (55)
Net amortisation, depreciation and impairment charges in
respect of tangible and intangible fixed assets                                                                                (44)                   (55)

(1) Amortisation and depreciation for the period are down €11 million, compared with 31 December 2004. This fall mainly arises from the application of CRC
standard 2002-10, and from the introduction of the components method (Cf. Point 6 of Accounting Principles).




Note 31 - Cost of risk
(in millions of euros)                                                                                                31.12.2005             31.12.2004
Impairment of loans and advances                                                                                               (17)                   (26)
Risks in respect of signature commitments                                                                                        (6)                  (82)
Counterparty risks                                                                                                               (8)                    (2)
Impairment and provision charges                                                                                               (31)                  (110)
Impairment of loans and advances                                                                                                23                     19
Risks in respect of signature commitments                                                                                       12                      6
Counterparty risks                                                                                                               6                     15
Recoveries of impairment and provisions                                                                                         41                     40
Losses on irrecoverable loans and advances and recoveries                                                                      (27)                   (12)
Losses and recoveries                                                                                                          (27)                   (12)
Cost of risk                                                                                                                   (17)                   (82)




                                                                                                                       Caisse des Dépôts | Financial Report 2005   | 93 |
Central Sector




               Note 32 - Gains and losses on fixed assets


               (in millions of euros)                                                                                               31.12.2005   31.12.2004
               Gains/losses on disposals of tangible and intangible fixed assets                                                                        (1)
               Gains and losses on disposals of operating tangible and intangible fixed assets                                                          (1)
               Balance (profit/loss) on transactions in long-term equity interests and advances                                            18          941
               - gains/losses on disposal of participating interests and gains/losses on advances (1)                                     (10)         919
               - impairment charges/recoveries in respect of participating interests and advances                                          28           22
               Balance (profit/loss) on transactions in respect of held-to-maturity and
               other long-term securities                                                                                                  (1)
               - gains or losses on disposal of held-to-maturity and other long-term securities                                            (1)
               Gains or losses on transactions in long-term equity interests and other securities held long-term                           17          941
               Gains or losses on fixed assets                                                                                             17          940

               (1) 2004 note: €958 million of which concerned the disposal gains or losses made on the Restructuring transaction.




               Note 33 - Income tax
               (in millions of euros)                                                                                               31.12.2005   31.12.2004
               Contribution representing French corporation tax (CRIS)                                                                   (372)        (360)
               Provision for taxes                                                                                                         91          104
               Income tax                                                                                                                (281)        (256)




               Note 34 - Net transfers to funds for general banking risks (FGBR)
                         and to regulated reserves
               (in millions of euros)                                                                                               31.12.2005   31.12.2004
               Net transfers to funds for general banking risks (FGBR)
               Transfers to/recoveries from regulated reserves                                                                                          10
               Net transfers to funds for general banking risks (FGBR) and to regulated reserves                                            0           10

               In 2004, the provision for Medium and Long-Term Credit was wholly recovered (€10 million).




| 94 |   Caisse des Dépôts | Financial Report 2005
NOTE 35 - Guarantee given by Caisse des Dépôts to Ixis Corporate
          & Investment Bank (ICIB)

Under an agreement approved on 1 December 2000, Caisse           From 1 April 2003, the annual consideration for the guaran-
des Dépôts issued to CDC Ixis, which became ICIB (Ixis           tee is the highest of the following three amounts:
Corporate & Investment Bank), a joint and several guaran-        ■ an amount based on the ratio, calculated on a consoli-
tee. This guarantee relates to certain financial instruments     dated basis, between capital at risk and Tier 1 capital, within
that enable ICIB to be refinanced (issuance transactions         the meaning of the capital adequacy regulations,
except for subordinated issues, and interbank and treasury       ■ the amount arrived at by multiplying the total outstandings
transactions), as well as to signature commitments. According    of the financial instruments issued by ICIB by the difference,
to the terms of the agreement, ICIB may in turn, and sub-        on issue, between the remuneration of financial instruments
ject to certain conditions, issue its own guarantee to certain   of the same maturity issued by financial institutions enjoying
of its subsidiaries.                                             the same rating as CDC Ixis’s intrinsic rating (without guaran-
                                                                 tee) and the remuneration of the said instruments by financial
The European Commission examined the terms of this agree-        institutions enjoying the same rating that ICIB guarantees,
ment and the remuneration therefor in May 2003. In accor-        ■ €8 million.
dance with the European Commission’s favourable deci-
sion, the ability to issue this guarantee for new transactions   For the 2005 financial year, remuneration owed by ICIB to
will cease on 23 January 2007.                                   Caisse des Dépôts amounted to €12.4 million, of which the
                                                                 amount to be retroceded to CNCE was €6.2 million.
Since 1 April 2003, new balance sheet transactions with a
maturity after 23 January 2017 have no longer been able to
be guaranteed and, from 23 January 2004, new off-balance
sheet transactions with a maturity after 23 January 2017 will
also be excluded.

Since 30 June 2004, the date of disposal of CDC Ixis to the
Caisse d’Epargne group, the Restructuring Agreement,
without calling into question the aforesaid mechanism, sup-
plemented it with a counter-guarantee commitment from
CNCE for the benefit of Caisse des Dépôts in respect of its
original commitment vis-à-vis CDC Ixis. Caisse des Dépôts
retrocedes to CNCE in this respect 50% of the remuneration
received.

The guarantee originally issued by Caisse des Dépôts to
CDC Ixis has enabled the latter institution’s credit rating to
be enhanced, laying the foundations for a transitional mecha-
nism, authorised by the European Commission’s Competition
Directorate, that would progressively enable this subsidiary
to dispense with the guarantee. The combination of the two
commitments given and received must be considered from
the viewpoint of the process of removing ICIB from the acti-
vities directly managed by Caisse des Dépôts.

The application of the ordinary accounting rules, which would
have led to the two reciprocal commitments being entered
under off-balance sheet items, was not adopted, on the
grounds that these rules do not reflect the substance of this
complex and extraordinary transaction in aid of the removal
of a former subsidiary and of the schedule extinguishment
of Caisse des Dépôts’ obligations.




                                                                                                Caisse des Dépôts | Financial Report 2005   | 95 |
Central Sector

               Statutory Auditors’ report on the annual financial statements
               of the Central Sector of Caisse des dépôts et consignations
               Financial year ended 31 December 2005

               This is a free translation into English of the Statutory Auditors’ report   sets out the changes in accounting policy resulting from the
               issued in French language and is provided solely for the convenience        application of:
               of English speaking readers. The Statutory Auditors’ report includes
                                                                                           ■ Article 13 of CRC Regulation 2002-03 relating to the pro-
               information specifically required by French law in all audit reports,
               whether qualified or not, and this is presented below the opinion on        cedures for calculating impairment in respect of doubtful
               the financial statements. This information includes an explanatory          outstandings and compromised doubtful outstandings;
               paragraph discussing the auditors’ assessments of certain signifi-          ■ CRC Regulation 2004-06 relating to the definition, recog-
               cant accounting and auditing matters. These assessments were con-           nition and measurement of assets;
               sidered for the purpose of issuing an audit opinion on the financial
                                                                                           ■ CRC Regulation 2002-10 relating to the amortisation and
               statements taken as a whole and not to provide separate assurance
               on individual account captions or on information taken outside of the       depreciation and to the impairment of assets;
               financial statements.                                                       ■ the change in policy relating to the procedures for spread-
               This report should be read in conjunction with, and construed in            ing premiums/discounts on fixed-income debt securities and
               accordance with, French law and professional auditing standards             of the hedging items relating thereto.
               applicable in France.

                                                                                           2. Justification of our assessments
               Ladies and Gentlemen,
                                                                                           Pursuant to the provisions of Article L. 823-9 of the French
                                                                                           Commercial Code relating to the justification of our assess-
               In performing the task you have entrusted to us, we are sub-
                                                                                           ments, we draw your attention to the following items.
               mitting to you our report relating to the financial year ended
               31 December 2005, concerning:
                                                                                           Changes of methods
               ■ the audit of the accompanying annual financial statements
                                                                                           As part of our assessment of the accounting rules and prin-
               of the Central Sector of Caisse des dépôts et consignations;
                                                                                           ciples followed by your company, we obtained assurance
               ■ the justification of our assessments;
                                                                                           that the changes in accounting policy mentioned above and
               ■ the specific verifications.
                                                                                           the related disclosures were appropriate.

               The annual financial statements have been drawn up by
                                                                                           Accounting estimates
               the Chief Executive Officer. It is our responsibility, on the
                                                                                           The measurement of long-term equity interests (“participating
               basis of our audit, to express an opinion on these financial
                                                                                           interest securities”) and of portfolio securities require the use
               statements.
                                                                                           of significant accounting estimates in any banking activity.
                                                                                           Long-term equity interests (“participating interest securities”)
               1. Opinion on the annual financial statements
                                                                                           and portfolio securities are valued at their fair value, adopt-
               We have performed our audit in accordance with the pro-
                                                                                           ing a multi-criteria approach (see the note concerning the
               fessional standards applicable in France. These standards
                                                                                           “Accounting principles used in preparing the financial state-
               require that we plan and perform the audit to obtain reasonable
                                                                                           ments” and notes 3, 4 and 5 to the financial statements). As
               assurance that the annual financial statements are free of
                                                                                           part of our assessment of these estimates, we have exam-
               material misstatements. An audit consists of examining, on
                                                                                           ined the factors used to determine the fair value for the main
               a test basis, evidence supporting the amounts and disclosures
                                                                                           headings of the portfolio.
               in these financial statements. It also consists in examining the
                                                                                           We have conducted an assessment of the reasonable nature
               accounting principles used and significant estimates made
                                                                                           of these estimates.
               by management and assessing the overall manner in which
                                                                                           The assessments were made in the context of our audit of
               they are presented. We believe that our work provides a rea-
                                                                                           the annual financial statements, taken as a whole, and there-
               sonable basis for the opinion expressed below.
                                                                                           fore contributed to the formation of the opinion expressed
               In our opinion, the annual financial statements present fairly
                                                                                           in the first part of this report.
               the results of the Central Sector of Caisse des dépôts et
               consignations for the year ended 31 December 2005, and
                                                                                           3. Specific verification
               its assets and liabilities and financial position at that date, in
                                                                                           We also examined the financial information provided in the
               accordance with French accounting regulations and gener-
                                                                                           annual report. We have no observation as to the fairness of
               ally accepted accounting principles.
                                                                                           that information and its consistency with the annual financial
               Without qualifying the opinion expressed above, we draw
                                                                                           statements.
               your attention to note I to the financial statements, which



                                                              Neuilly-sur-Seine and La Défense, 4 May 2006
                                                                           The Statutory Auditors

                   PricewaterhouseCoopers Audit                                                                              Mazars & Guérard
                         Catherine Pariset                                                                            Guillaume Potel Denis Grison

| 96 |   Caisse des Dépôts | Financial Report 2005
Savings
Funds




          Savings Funds centralised at Caisse des Dépôts

          Savings Funds - Annual financial statements
            - Introductory note                         P. 98
            - Balance sheet                             P. 99
            - Breakdown of the balance sheet            P. 100
            - Off-balance sheet items                   P. 102
            - Breakdown of off-balance sheet items      P. 103
            - Income statement                          P. 104
            - Notes to the financial statements         P. 105




                                                                 | 97 |
Savings Funds
Introductory note



               Description of activity                                              Presentation of the financial statements

               t Caisse des Dépôts’ activity is divided into two main               t The financial statements set out the position
               missions:                                                            for all of the savings funds centralised at
                                                                                    Caisse des Dépôts. They cover the following funds:
               ■ its own activity carried on by the Central Sector –the finan-
               cial and administrative entity of Caisse des Dépôts– and by          ■  Caisses d’Epargne et de Prévoyance: Livret A;
               subsidiaries and participating interests attached to it, in par-     ■  Caisses d’Epargne et de Prévoyance (CEP) reserve and
               ticular the C3D, CNP, CNCE, SNI and CDC Entreprises Groups;          guarantee fund;
                                                                                    ■ Caisse Nationale d’Epargne (CNE): Livrets A and B;

               ■ the administration of the funds entrusted to it: Caisse            ■ CNE reserve and guarantee fund;
               des Dépôts’ accounting structure reflects the nature of the          ■ Livret d’Epargne Populaire (LEP): funds centralised by CEP,
               relations existing between the institution and these funds.          CNE, the banks and other networks;
                                                                                    ■ LEP reserve fund;
               Various statutory, regulatory and contractual documents              ■ Livret Jeunes;
               define the nature of the services provided by Caisse des             ■ Livret Jeunes reserve fund;
               Dépôts and the financial conditions attached to such.                ■ Compte pour le développement industriel (Codevi) (indus-
                                                                                    trial development account);
               The regulations governing savings funds (fonds d’épargne)            ■ Epargne-Logement (home savings);
               are mainly contained in the French Savings Banks Code                ■ CNE Plan d’Epargne Populaire (CNE PEP);
               (Code des Caisses d’Epargne) and the French Monetary                 ■ Other funds:
               and Financial Code (Code Monétaire et Financier).                    - Fonds de réserve du financement du logement (FRFL)
                                                                                    (housing finance reserve fund);
               The practical implementation of these regulations in all their       - CEP Epargne-Logement reserve fund;
               particular aspects impacts considerably on the way the man-          - Epargne construction (building savings);
               agement of the savings funds is structured, in particular the        - Sociétés de Développement Régional (SDR) (regional devel-
               fact that the savings funds have no separate legal person-           opment companies) guarantee fund,
               ality of their own; that it is necessary to distinguish the income   - Crédit Foncier de France (CFF) special fund.
               that is specific to certain components of the activity; and
               that a State guarantee applies to certain funds that are             The administration of each of these funds is set out in sep-
               deposited.                                                           arate accounts; an overall presentation and a breakdown
                                                                                    by fund are drawn up.
               The accounting systems permit individual identification, for
               each administered fund, of the resources specific to it and the      Some adjustments to the presentation, which are mentioned
               uses that are made of such, as well as the profits or losses         in Point II of the Notes to the Financial Statements, on the com-
               relating to it. A balance sheet, income statement and a state-       parability of the financial statements, have been adopted.
               ment of off-balance sheet items are drawn up for each fund.




| 98 |   Caisse des Dépôts | Financial Report 2005
Balance sheet of savings funds centralised
at Caisse des Dépôts
                                                                              Notes           31.12.2005              31.12.2005           31.12.2004
(in millions of euros)                                                                      after transfer*         before transfer

 Assets
Interbank and similar transactions                                                                    63,023                  76,904          80,031
Treasury bills and similar securities                                               3                 53,597                  61,136          70,948
Loans and advances to credit institutions                                                              9,426                  15,768           9,083
- ordinary accounts                                                                 1                  2,182                   8,308           1,418
- investment loans                                                                  2                     23                      23              30
- housing loans                                                                     2                  2,324                   2,324           2,417
- other loans                                                                       2                  4,897                   5,113           5,218
Customer transactions                                                               2                 86,262                 104,713         104,861
Other loans and advances to customers                                                                 86,262                104,713          104,861
- investment loans                                                                                     3,229                  3,229            3,740
- housing loans                                                                                       82,058                 82,058           82,745
- other loans                                                                                            975                 19,426           18,376
Debentures, equities and other fixed-income
and variable-yield securities                                                       3                 50,026                  57,944          57,067
Debentures and other fixed-income securities                                                          42,610                  50,528          50,360
Equities and other variable-yield securities                                                           7,416                   7,416           6,707
Participating interests                                                             4                                                               1
Tangible fixed assets                                                               5
Other assets                                                                        6                        9                       9            20
Prepayments and accrued income                                                      6                      37                     101             25

Total assets                                                                                        199,357                 239,671          242,005

 Liabilities and equity
Interbank and similar transactions                                                                   140,926                 127,976         130,797
Amounts owed to credit institutions                                                                 140,926                 127,976          130,797
- ordinary accounts                                                                 7                                                            268
- term loans                                                                        7                 1,310                   1,526            1,657
- other amounts owed to credit institutions                                         7                 2,806                   2,806            2,249
- centralised deposits                                                              8               133,946                 121,113          123,736
     CEP - Livret A                                                                                  63,821                  63,821           64,691
     Livret d’Epargne Populaire                                                                      47,457                  36,853           36,616
     other                                                                                           22,668                  20,439           22,429
- accrued interest on deposits                                                      8                 2,864                   2,531            2,887
Customer transactions                                                                                 47,022                  98,630          98,105
Amounts owed to customers                                                                             47,022                  98,630          98,105
- centralised deposits                                                              8                 46,022                  96,201          95,588
     CNE - Livrets A and B                                                                            46,022                  49,008          49,089
     Epargne-Logement                                                                                                         30,531          29,924
     Livret d’Epargne Populaire                                                                                               12,449          12,289
     other                                                                                                                     4,213           4,286
- accrued interest on deposits                                                      8                     987                  2,387           2,511
- withholdings from interest payable on deposits                                    8                      13                     42               6
Other liabilities                                                                   9                     132                     136            702
Accruals and deferred income                                                        9                  3,001                   3,003           2,653
Provisions                                                                        10                      612                  1,223           1,269
Fund for General Banking Risks (FGBR)                                             11                   2,703                   3,672           3,194
Equity - excluding FGBR                                                           12                   4,961                   5,031           5,285
Ordinary reserves                                                                                      3,909                   3,909           3,823
Retained earnings                                                                                        158                     219             196
Unappropriated profit                                                                                    894                     903           1,266

Total liabilities and equity                                                                        199,357                 239,671          242,005

* Note 27 reconciles the balance sheet as at 31 December 2005 after transfer with the balance sheet at 31 December 2005 before transfer.


                                                                                                                    Caisse des Dépôts | Financial Report 2005   | 99 |
Savings Funds
Breakdown of the balance sheet of savings funds
centralised at Caisse des Dépôts after transfer as of 31 December 2005
                                                                         Livret A      CE reserve CNE                CNE reserve         LEP              LEP
                                                                           CEP         & guarantee Livrets           & guarantee                        reserve
               (in millions of euros)                                                      fund     A&B                  fund                            Fund

                Assets
               Treasury and interbank transactions                        17,256           173       14,790                11          28,796               82
               Treasury bills and similar securities                      13,345                     12,535                            27,265
               Loans and advances to credit institutions                   3,911           173        2,255                11           1,531               82
               - ordinary accounts                                           370             8        1,166                11             531                2
               - investment loans                                             12             2            9
               - housing loans                                               823                      1,080                               421
               - other loans                                                 899                                                            1
               - miscellaneous loans and advances                          1,807           163                                            578               80
               Customer transactions                                      49,220                     31,460                             4,700
               Other loans and advances to customers                      49,220                     31,460                             4,700
               - investment loans                                          1,925                      1,168                               136
               - housing loans                                            47,295                     30,292                             4,564
               - other loans
               Debentures, equities and other
               fixed-income and variable-yield securities                 13,622         1,197       11,414            1,018           20,605              950
               Debentures and other fixed-income securities               10,036         1,197        8,980            1,018           19,209              950
               Equities and other variable-yield securities                3,586                      2,434                             1,396
               Other assets                                                    46             1            1
               Prepayments and accrued income                                  11                         13                               13

               Total assets                                               80,155         1,371       57,678            1,029          54,114             1,032

                Liabilities and equity
               Interbank and similar transactions                         76,523                      8,822                            52,578
               Amounts owed to credit institutions                        76,523                      8,822                            52,578
               - ordinary accounts                                           289                        269                               752
               - term loans                                                1,109                      1,933                             3,014
               - centralised deposits                                     73,750                      6,620                            47,457
                    CEP - Livret A                                        63,821
                    Livret d’Epargne Populaire                                                                                         47,457
                    other                                                  9,929                      6,620
               - accrued interest on deposits                              1,375                                                        1,355
               Customer transactions                                                                 47,020                                  2
               - centralised deposits                                                                46,022
                    CNE - Livrets A and B                                                            46,022
               - accrued interest on deposits                                                           985                                  2
               - withholdings from interest payable on deposits                                          13
               Other liabilities                                               13                          8                                 4
               Accruals and deferred income                                1,719            39           747                              708
               Provisions                                                    109              3           66                              232
               Fund for General Banking Risks (FGBR)                       1,297                         836                              493
               Equity - excluding FGBR                                       494         1,329           179           1,029               97            1,032
               Ordinary reserves                                                         1,321                         1,002                             1,012
               Retained earnings                                               7                          10                               17
               Unappropriated profit                                         487              8          169               27              80               20

               Total liabilities and equity                               80,155         1,371       57,678            1,029          54,114             1,032

               * The CNE Epargne-Logement (Home Savings) and CNE PEP funds were transferred to La Poste on 31 December 2005 in connection with the creation of
               La Banque Postale.




| 100 |   Caisse des Dépôts | Financial Report 2005
 Livret   Codevi      CNE      CNE PEP*    Other    Cumulative     Inter-fund               Total
jeunes              Epargne-              savings     total      transactions               (A-B)
                   logement*               funds       (A)             (B)



   97      4,478                            590       66,273           3,250                63,023
             195                            257       53,597                                53,597
   97      4,283                            333       12,676           3,250                 9,426
   57          8                             29        2,182                                 2,182
                                                          23                                    23
                                                       2,324                                 2,324
           3,997                                       4,897                                 4,897
   40        278                            304        3,250           3,250
            975                                       86,355              93                86,262
            975                                       86,355              93                86,262
                                                       3,229                                 3,229
                                                      82,151              93                82,058
            975                                          975                                   975

            933                             287       50,026                                50,026
            933                             287       42,610                                42,610
                                                       7,416                                 7,416
                                                          48              39                        9
                                                          37                                     37

   97      6,386                            877      202,739           3,382               199,357



           6,253                                     144,176           3,250               140,926
           6,253                                     144,176           3,250               140,926
                                                       1,310                                 1,310
                                                       6,056           3,250                 2,806
           6,119                                     133,946                               133,946
                                                      63,821                                63,821
                                                      47,457                                47,457
           6,119                                      22,668                                22,668
             134                                       2,864                                 2,864
                                                      47,022                                47,022
                                                      46,022                                46,022
                                                      46,022                                46,022
                                                         987                                   987
                                                          13                                    13
              1                             106          132                                    132
   22                                                  3,235             234                  3,001
              3                                4         417            (195)                   612
             77                                        2,703                                  2,703
   75        52                             767        5,054              93                  4,961
   55                                       642        4,032             123                  3,909
             36                              88          158                                    158
   20        16                              37          864              (30)                  894

   97      6,386                            877      202,739           3,382               199,357




                                                                  Caisse des Dépôts | Financial Report 2005   | 101 |
Savings Funds
Savings funds centralised at Caisse des Dépôts
Off-balance sheet items

                                                                                                        31.12.2005              31.12.2005                31.12.2004
               (in millions of euros)                                                                 after transfer*         before transfer

                Financing and guarantee commitments and commitments given in respect of securities
               Financing commitments
               To credit institutions                                                                            2,718                    2,718                  2,570
               Offers of loans                                                                                   2,162                    2,162                  2,516
               - housing loans                                                                                   2,162                    2,162                  2,370
               - other loans                                                                                                                                       146
               Undertakings to grant loans                                                                            1                       1                      1
               - housing loans                                                                                        1                       1                      1
               Loans agreed but not yet disbursed                                                                   555                     555                      1
               - housing loans                                                                                      555                     555                      1
               Other financing commitments                                                                                                                          52
               To customers                                                                                     11,032                  12,619                   8,367
               Offers of loans                                                                                   8,598                   8,598                   4,929
               - investment loans                                                                                   11                      11
               - housing loans                                                                                   8,587                   8,587                   4,929
               Undertakings to grant loans                                                                         595                     595                     752
               - housing loans                                                                                     595                     595                     752
               Loans agreed but not yet disbursed                                                                1,839                   3,426                   2,686
               - investment loans                                                                                   69                      69                      38
               - housing loans                                                                                   1,770                   1,770                   1,856
               - home savings (Epargne-Logement) loans                                                                                   1,587                     792
               Guarantee commitments
               Other guarantees given to credit institutions                                                         38                      38                         38
               Commitments given in respect of securities
               Securities to be delivered                                                                                                                               5

                Financing and guarantee commitments and commitments received in respect of securities
               Guarantee commitments
               Guarantee commitments received from the State and similar                                        76,999                  76,999                 77,345
               Guarantee commitments received from credit institutions                                           3,554                   3,554                  3,608
               Other guarantee commitments received                                                                109                     109                    115
               Commitments received in respect of securities
               Securities receivable                                                                                201                     201                    193

                Other commitments given and received
               Other commitments given
               Securities pledged as collateral                                                                     350                     350                    350
               Undertakings to purchase securities                                                                  101                     101
               Undertakings to sell properties                                                                                                                          2
               Other commitments received
               Subsidies receivable in respect of PLA loans                                                            8                       8                        11

                Commitments given and received in respect of financial instruments
               Commitments given
               Forward financial instruments                                                                    13,565                  13,591                 11,894
               Commitments received
               Forward financial instruments                                                                    13,565                  13,591                 11,894
               Options                                                                                                                     124                     19

               * Note 27 of the notes reconciles the off-balance sheet items at 31 December 2005 after transfer with the off-balance sheet items at 31 December 2005.




| 102 |   Caisse des Dépôts | Financial Report 2005
Breakdown of off-balance sheet items of the savings
funds centralised at Caisse des Dépôts after transfer at 31 December 2005
                                             CEP          CE        CNE         LEP      Codevi        CNE         CNE         Other       Overall
                                           Livret A Reserve &      Livrets                           Epargne-       PEP*      savings       total
                                                    Guarantee       A&B                             Logement*                  funds
(in millions of euros)                                  Fund

 Financing and guarantee commitments and commitments given in respect of securities
Financing commitments
To credit institutions                         865                  1,535       318                                                         2,718
Offers of loans                                753                  1,101       308                                                         2,162
- housing loans                                753                  1,101       308                                                         2,162
Undertakings to grant loans                                             1                                                                       1
- housing loans                                                         1                                                                       1
Loans agreed but not yet disbursed             112                    433        10                                                           555
- housing loans                                112                    433        10                                                           555
To customers                                 6,853                  3,865       314                                                       11,032
Offers of loans                              5,353                  3,038       207                                                        8,598
- investment loans                              11                                                                                            11
- housing loans                              5,342                   3,038      207                                                        8,587
Undertakings to grant loans                    362                     219       14                                                          595
- housing loans                                362                     219       14                                                          595
Loans agreed but not yet disbursed           1,138                     608       93                                                        1,839
- investment loans                              69                                                                                            69
- housing loans                              1,069                     608       93                                                        1,770
Guarantee commitments
Other guarantees given
to credit institutions                                                                                                              38          38

 Financing and guarantee commitments and commitments received in respect of securities
Guarantee commitments
Guarantee commitments received
from the State and similar          44,564                    2    29,295 2,146             992                                            76,999
Guarantee commitments received
from credit institutions             2,419                           1,050       85                                                         3,554
Other guarantee commitments received 107                                          2                                                           109
Commitments received
in respect of securities
Securities receivable                          153                      34       14                                                           201

 Other commitments given and received
Other commitments given
Securities pledged as collateral                                                350                                                           350
Undertakings to purchase securities              51                     33       17                                                           101
Other commitments received
Subsidies receivable in respect of PLA loans      8                                                                                              8

 Commitments given and received in respect of financial instruments
Commitments given
Forward financial instruments                3,477                  3,167 6,579             342                                           13,565
Commitments received
Forward financial instruments                3,477                  3,167 6,579             342                                           13,565

* The CNE Epargne-Logement and CNE PEP funds were transferred to La Poste on 31 December 2005 in connection with the creation of La Banque Postale.




                                                                                                                Caisse des Dépôts | Financial Report 2005   | 103 |
Savings Funds
Income statement of savings funds centralised
at Caisse des Dépôts


               (in millions of euros)                                                                           Notes            31.12.2005           31.12.2004
               Interest receivable and similar income                                                               17                 8,692                    9,205
               Treasury and interbank transactions                                                                                       349                      451
               - financing transactions                                                                                                  298                      324
               - other                                                                                                                    51                      127
               Customer transactions                                                                                                   4,054                    4,361
               - financing transactions                                                                                                4,054                    4,361
               Portfolio of fixed-income securities                                                                                    4,289                    4,393
               Interest payable and similar charges                                                                 18                (6,035)              (6,366)
               Treasury and interbank transactions                                                                                    (3,216)                  (3,549)
               - deposits                                                                                                             (3,162)                  (3,429)
               - other                                                                                                                    (54)                   (120)
               Customer transactions                                                                                                  (2,585)                  (2,678)
               - deposits                                                                                                             (2,585)                  (2,678)
               Portfolio of fixed-income securities                                                                                     (234)                    (139)
               Income from portfolio of variable-yield securities                                                   19                   265                      201
               Commissions (income)                                                                                 20                     63                        1
               Other commissions                                                                                                           63                        1
               Commissions (charges)                                                                                20                (2,387)              (2,587)
               Remuneration of centralising networks                                                                                  (2,372)                  (2,572)
               - remuneration of credit institution networks                                                                          (1,119)                  (1,190)
               - remuneration of customer networks                                                                                    (1,253)                  (1,382)
               Other commissions                                                                                                          (15)                     (15)
               Gains or losses on trading portfolio transactions                                                    21                     (1)                    (18)
               Transactions in financial instruments                                                                                       (1)                    (18)

               Gains or losses on available-for-sale portfolio transactions and similar                             22                   844                      992
               Available-for-sale securities                                                                                             472                      672
               Net impairment charges and recoveries                                                                                     372                      320
               Other banking operating income and charges                                                           23                     (5)                    (15)
               Net banking income                                                                                                      1,436                    1,413
               General operating charges                                                                            24                    (86)                    (91)
               Gross operating profit                                                                                                  1,350                    1,322
               Cost of risk                                                                                         25                     29                     230
               Net impairment charges and recoveries in respect of doubtful loans and advances                                              3                      43
               Transfers to provisions net of recoveries                                                                                   29                     208
               Losses or gains on irrecoverable loans and advances                                                                         (3)                    (21)
               Operating profit                                                                                                        1,379                    1,552
               Gains or losses on fixed assets                                                                                              2
               Profit on ordinary activities                                                                                           1,381                    1,552
               Transfers to the fund for general banking risks net of recoveries                                    26                  (478)                    (286)
               Net profit before transfer                                                                                                903                    1,266
                          (1)
               Transfer                                                                                                                    (9)
               Net profit after transfer                                                                                                 894                    1,266

               (1) The profits of the CNE PEP and Epargne-Logement funds were transferred to la Poste on 31 December 2005 in connection with the creation of
               La Banque Postale.




| 104 |   Caisse des Dépôts | Financial Report 2005
Notes to the financial statements




I - Highlights of the year                                          Banking Risks, reserves and retained earnings) at a level at
                                                                    least equal to the cumulative amount of these same items
1. Reduction in Livret A, Livret B and Livret                       as reflected in the accounts at 31 December 2003. If this
Bleu commissions                                                    capital is inadequate, the necessary addition will be deduct-
In 2005, the collection commissions for Livret A, Livret B of       ed from earnings and will therefore reduce the payment made
Caisse Nationale d’Epargne (CNE), and for Livret Bleu of            to La Poste.
Crédit Mutuel, were reduced twice. A first reduction of 0.10%
took place from 1 January 2005, and the second, of the              For the first year of implementation of the agreement in 2004
same amount, took place from 1 November 2005. The first             and up to the month of April 2005 inclusive, payment of the
reduction led to a recovery in the 2004 accounts of provi-          earnings to La Poste was made in the form of monthly inter-
sions on loans at a rate below the refinancing cost that were       im payments, on the basis of a rate of 1.75% applied to the
carried by these sections, which therefore boosted 2004             total volume of deposits. Beyond this, the monthly payment
earnings, and the second reduction led to a recovery of provi-      was fixed at 1/12 of the latest known annual earnings.
sions in 2005 of €36 million.                                       The final payment took place in December 2005 pursuant
                                                                    to the terms of the transfer agreement prior to the creation of
2. Change in the rate for centralising                              La Banque Postale mentioned below.
the Codevi funds for the Caisses d’Epargne
By Order of the French Minister of Finance, dated 23 Sep-           5. Creation of La Banque Postale
tember 2005, the rate for centralising the Codevi funds at          The creation of La Banque Postale, pursuant to Article 16
Caisse des Dépôts by Caisses d’Epargne was brought into             of French Law No.2005-516 dated 20 May 2005 concern-
line with the standard rate. The minimum centralisation rate        ing the regulation of postal activities; to Article 3 of French
was reduced, on 1 October 2005, from 50% to 6.50% of                Decree No.2005-1068 dated 30 August 2005 adopted in
the funds collected on the Codevis (Comptes pour le                 implementation of this Law; and to the French Order dated
Développement Industriel – Industrial Development Accounts).        28 December 2005 adopted in implementation of the Decree,
At the same time, the maximum centralisation rate, beyond           took place on 31 December 2005. This concerned a series
which centralised funds are remunerated by the Caisse des           of activities dealt with until then by La Poste on behalf of
Dépôts only at the depositor rate, was reduced for Caisses          CNE, for which Caisse des Dépôts centralised all the deposits
d’Epargne, from 52.5% to the standard rate of 9%.                   and also the Livret Jeunes of La Poste, which La Poste cen-
                                                                    tralised at Caisse des Dépôts.
3. CFF loans transferred to Livret A
At the request of La Poste, the recipient of the earnings of        A series of agreements, including, in particular, a transfer
the Epargne-Logement section, and in anticipation of the            agreement and two agreements for re-establishing central-
transfer of the Epargne-Logement (Home Savings) section             isation of the LEP (Livret d’Epargne Populaire) and Codevi
to La Banque Postale at the end of 2005, four loan agree-           by La Banque Postale, enabled the transfers to be arranged.
ments carried by the Epargne-Logement section but unrelated
to the actual activity, were sold by the Epargne-Logement           t The special case of Livret A
section on 30 June 2005 to the CNE Livret A section. The            From 1 January 2006, only the activity relating to the collec-
transaction, which was carried out at market price for an           tion of Livret A and its centralisation with Caisse des Dépôts
amount at market value of €160.6 million, generated a gain          remained with CNE.
of €2.4 million for the section concerned.
                                                                    t Other CNE Livrets transferred to La Banque Postale

4. Management of Epargne-Logement funds                             via La Poste
with La Poste                                                       The other livrets distributed up to 2005 by CNE (Livret B,
A management agreement was signed on 26 February 2004,              Livret d’Epargne Populaire, Codevi, Epargne-Logement,
with effect from 1 January 2004, in order to establish a new        Plan d’Epargne Populaire) have been distributed since
division of responsibilities between La Poste and Caisse des        31 December 2005 by La Banque Postale on its own behalf
Dépôts concerning the management of the Epargne-Logement            in the normal way.
funds centralised at Caisse des Dépôts by CNE. This agree-
ment provides that La Poste is to be the recipient of the sur-      ■ The LEP is now centralised in the normal way, i.e. at 85%
plus for the section and the decision-maker as to its man-          instead of 100% for CNE, with a commission rate that will
agement.                                                            be rendered uniform with that of the other banks. It is to be
                                                                    noted that the French Decree dated 30 August 2005 (see
It also provides that La Poste will undertake to maintain the       above) specified that the transfer of LEP to La Banque Postale
risk-coverage items (provisions for liabilities, Fund for General   via La Poste and the re-establishment of centralisation by


                                                                                                  Caisse des Dépôts | Financial Report 2005   | 105 |
Savings Funds




               La Banque Postale were to take the form of a transfer of            ■ Effect  on securities. La Banque Postale took over, via La
               receivables from Caisse des Dépôts for the equivalent of            Poste and at carrying value, the securities portfolio entered
               85% of the CNE deposits, in order for La Banque Postale             in the assets of the CNE Epargne-Logement and CNE Plan
               ultimately to be in the same centralisation position as the other   d’Epargne Populaire sections, of a total amount of €15.4
               banks, and of a payment of liquid assets for the other 15%.         billion. These were exclusively interest-rate securities. For
                                                                                   technical reasons, as 31 December 2005 was not a busi-
               ■  Codevi. The transfer to La Poste and then to La Banque           ness day, the transfer of the securities to La Poste in the
               Postale took the form, pursuant to the Decree, of a simple          depository’s books took place on 30 December pursuant
               transfer of the CNE portfolio of industrial development secu-       to the transfer agreement.
               rities (Titres pour le Développement Industriel – TDI – which
               are the vehicles for Codevi centralisation) to La Poste and         ■ Effect on equity. The “CNE Epargne-Logement” and “CNE
               then to La Banque Postale. This transfer was of 100% of             PEP” sections were transferred, pursuant to the regulations,
               the total amount, as La Banque Postale will join in 2008 the        at carrying value. A transfer of €19 million of the equity of
               standard centralisation regime, which currently stipulates a        CNE PEP to the CNE Reserve and Guarantee Fund (FRGCNE)
               minimum of 6.5%.                                                    took place in 2005 at the request of the French Minister of
                                                                                   Finance.
               ■ The other CNE Livrets (CNE Livret B, CNE PEP and CNE
               EL) are no longer centralised at Caisse des Dépôts since            ■ Earnings of the Epargne-Logement and PEP sections.
               31 December 2005. For Livret B, the transfer of deposits            The €9 million of earnings of the “CNE PEP” and “CNE
               prescribed by the Decree was effected in the form of a return       Epargne-Logement” sections for the 2005 financial year
               of liquid assets. For PEP and Epargne-Logement, this involved       were transferred on 31 December to La Poste (it should be
               a transfer of the assets and liabilities of the “CNE PEP” and       noted that the detailed implementation of the principles of
               “CNE Epargne-Logement” sections, at net carrying value,             the agreement dated 26 February 2004 on the management
               and of their respective off-balance sheet items at carry-           of Epargne-Logement had the effect that there was by con-
               ing value.                                                          struction nil earnings for the section).
                                                                                   The contribution of these two funds to the earnings of the
               ■ Livret Jeunes. La Poste centralised 100% of its Livret Jeune      savings funds was: €26 million to net banking income (out
               at Caisse des Dépôts. It wished to terminate the agreement          of a total of €1.44 billion); €25 million to gross operating
               for centralising this product, in the form of a return of liquid    profit (out of a total of €1.35 billion); €8 million to operating
               assets on 31 December 2005.                                         profit (out of a total of €1.38 billion); and €9 million to profit
                                                                                   on ordinary activities (out of a total of €1.38 billion).
               t Savings funds after the transfer
               After the transfer, the balance sheet total was reduced by          6. Changes in accounting methods
               around 18%, from €242 billion at 31 December 2004 to                t Regulation No.2005-03 of the Comité
               €199.3 billion at 31 December 2005. This reduction impact-          de la Réglementation Comptable (CRC)
               ed on the main captions of the balance sheet:                       (French Accounting Regulation Committee),
                                                                                   relating to the accounting treatment of credit risk
               ■ Effect on deposits. The creation of La Banque Postale             The accounting provisions of CRC Regulation No.2005-03
               had the effect of removing:                                         amending Regulation No.2002-03 relating to credit risk and
               • €2.99 billion of CNE Livret B deposits,                           of mandatory application on 1 January 2006, were not applied
               • €1.84 billion of LEP deposits (i.e. the difference between        early by the savings funds on 1 January 2005.
               the daily 100% centralisation of CNE LEP, and the 85%
               centralisation of Banque Postale LEP, in accordance with            t Article 13 of CRC Regulation No.2002-03
               the monthly system specific to banks),                              relating to credit risk
               • €30.53 billion of Epargne-Logement deposits (including            The savings funds are subject, from 1 January 2005, to the
               80% of Plans and 20% of Livrets),                                   application of the discounted cash flows method in order to
               • €1.08 billion of Livret Jeune deposits and €0.9 billion of        calculate the impairment of doubtful and compromised
               CNE PEP deposits.                                                   doubtful outstandings, as explained in Article 13 of CRC
                                                                                   Regulation No.2002-03 relating to credit risk.
               ■ Effect on loans. The main effect on loans was in the trans-       Simulation work was carried out by the Savings Funds
               fer to La Banque Postale of €18.45 billion of the Epargne-          Division in order to estimate the impact of this change in
               Logement loan outstandings and top-up loans located in the          regulations on the level of impairment already recognised.
               assets of the Epargne-Logement section.
               Social housing loan outstandings, on the other hand, were
               not impacted in any way.

| 106 |   Caisse des Dépôts | Financial Report 2005
It emerges from this that the application of this discounting     II - Comparability of financial statements
method had no material impact on earnings and equity for
the 2005 financial year.                                          The transfers made on 31 December 2005 for the benefit
Consequently, the savings funds have availed themselves of        of La Poste in connection with the creation of La Banque
the option offered by Article 13 of CRC Regulation No.2002-03     Postale materially alter the balance sheet and the statement
not to discount expected flows for the purpose of calculat-       of off-balance sheet items for the savings funds.
ing impairment of doubtful outstandings and compromised           In order to have information that is comparable with the pre-
doubtful outstandings (“doubtful” and “compromised doubt-         vious period, a balance sheet and a statement of off-balance
ful” being categories specific to the French regulations).        sheet items “before transfer” have been drawn up. Note 27
                                                                  provides a reconciliation of the statements at the end of the
t CRC Regulation No.2005-01 relating to                           period “after transfer” with the statements “before transfer”.
the recognition of transactions in securities,                    The 2005 global income statement reflects the impact of the
amending CRC Regulation No.90-01 of the Comité                    transfer on 31 December 2005 of the earnings generated on
de la Réglementation Bancaire et Financière (CRBF)                the funds transferred. The earnings of the savings funds
(French Banking and Financial Regulation Committee)               included in the financial statements up to the transfer date
CRC Regulation No.2005-01 relating to the recognition of          are shown under the heading “profit before transfer”; this is
transactions in securities, amending Regulation No.90-01 of       directly comparable with 2004 profit. In view of the transfer
the Comité de la Réglementation Bancaire et Financière, is        to La Poste of the earnings for the CNE PEL and CNE Epargne-
applicable to periods commencing on or after 1 January 2007.      Logement sections, the “profit after transfer” corresponds
The savings funds did not elect for the early application of      to the unappropriated amount in the balance sheet for the
this Regulation from 1 January 2005.                              savings funds at 31 December 2005.

t Changes in policy relating to the procedures for                III - Accounting principles and policies
spreading premiums/discounts on fixed-rate
debt securities                                                   The financial statements have been prepared in accordance
With regard to fixed-rate debt securities, the savings funds      with generally accepted accounting principles in France,
elected to apply, from 1 January 2005, the yield-to-maturity      in compliance with the regulations applicable to credit
method for spreading premiums/discounts provided for by           institutions.
CRB (Commission de la Réglementation Bancaire – French
Banking Regulation Commission) Regulation 90-01 and CB            1. Fixed assets – participating interests
(Commission Bancaire – French Banking Commission) Instruc-        Pursuant to CRC Regulation No.2004-06 relating to the def-
tion 94-07.                                                       inition, recognition and measurement of assets, fixed assets
CRB Regulation No.90-15 provides, moreover, that charges          are valued at their acquisition cost, comprising the purchase
or income for instruments assigned to hedge an item or a          price, all the directly attributable costs and the costs of bor-
group of hedged items are recognised in profit and loss           rowing where appropriate.
(i.e. in the income statement) in a manner that is symmetrical    The land reserves are likewise the subject of an impairment
with the income or charges relating to the hedged items.          provision in the event of a loss in value.
Consequently, equalisation payments relating to swaps des-
ignated as fixed-rate debt security hedging instruments are       Shares held in Sociétés Civiles Immobilières (SCI) (Non-
now taken to profit and loss by the yield-to-marurity method.     Trading Property Companies) are recorded at acquisition cost.
                                                                  Impairment is recognised where there is a lasting loss of value
The impact of these changes in policy on the equity of the        calculated by reference to the net assets of the company in
savings funds at 1 January 2005 was €39.9 million for all the     which a participating interest is held.
sections, including that of the Epargne-Logement (€7.3 million)
and of the Plan d’Epargne Populaire (€0.3 million) of CNE.        2. Loans and borrowings
(cf. Note. 12 a).                                                 t Loans
                                                                  These are shown under assets at their redemption value.
t Definition, recognition, measurement, amortisation,
depreciation and impairment of assets                             Certain loans involve increasing annual instalments and give
The application of CRC Regulations No.2004-06 and                 rise to deferred interest. The deferred interest, which represents
No.2002-10 relating to the definition, recognition and meas-      the cumulative difference between the accrued interest and
urement of assets and to the amortisation, depreciation and       the interest payable, is recorded under “accrued interest not
impairment of assets has no material impact on the savings        yet payable”; such interest is progressively collected as the
funds.                                                            loans are repaid.


                                                                                                  Caisse des Dépôts | Financial Report 2005   | 107 |
Savings Funds




               Payments received for early redemptions and restructurings            foreseeable; loans and advances for which there has been
               are taken in full to profit and loss (i.e. to the income statement)   an event of default; as well as certain loans or advances
               on a cash basis.                                                      exceeding one year, those that are of an irrecoverable nature
               At 31 December 2005, such payments for early redemptions              requiring an impairment to be determined, and those that it
               and restructurings were reclassified under administration             is possible to contemplate will eventually be written off as
               commissions at an amount of €63 million (cf. Notes 17-b               bad. This analysis must be performed having regard to the
               and 20-b).                                                            collateral or guarantees that exist for such outstandings.
                                                                                     Doubtful outstandings and compromised doubtful outstandings
               Gains on disposals of loans between different savings funds           may be reclassified as sound outstandings when payments
               are eliminated for the presentation of accounts of the savings        have regularly resumed at the amounts corresponding to
               funds centralised at Caisse des Dépôts.                               the original contractual instalments and when the counter-
                                                                                     party no longer presents any risk of default. They may also
               Under the transactions involving the purchase of CGLLS                be entered in restructured outstandings if a rescheduling of
               loans, and of former French State loans, the difference               the loan takes place, after a period of observation.
               between the acquisition value and the carrying value is record-
               ed as premiums and discounts, which are taken to profit and           For loans presenting a known credit risk, a provision is record-
               loss by the yield-to-maturity method over the life of the loans       ed for all the anticipated losses on outstandings classified as
               and borrowings. Provisions are established in respect of the          doubtful loans and advances and as compromised doubt-
               premiums relating to loans that carry a significant risk of           ful loans and advances.
               restructuring or early redemption, as the premium paid on             Recognised interest in respect of doubtful loans and advances
               the purchase of such loans loses in that case any financial           that is not collected is fully written down.
               substance.                                                            When the institution deems the loan or advance to be def-
                                                                                     initely irrecoverable, a loss is recognised.
               The schedule of recoveries to profit and loss is updated each
               quarter to take account of early redemptions, and of restruc-         Loans and advances that are restructured on below market
               turings actually recorded, as well as of any rate changes.            terms are separately identified under a specific sub-catego-
                                                                                     ry of “sound outstandings”. They give rise to the recogni-
               Loans are transferred to doubtful loans and advances as               tion under “cost of risk” of a discount representing the future
               soon as they carry a known credit risk, that is to say when           interest difference, as a deduction from the assets at the
               it is likely that all or part of the sums owed under the agree-       time of the restructuring. This discount is written back over
               ment will not be received, notwithstanding the existence of           the remaining life of the loan in the interest margin. Where
               collateral or a guarantee. In any case, loans considered to           appropriate, when uncertainties remain as to the recovery
               be doubtful are loans with instalments past due for more              of the borrower’s situation, the loan or advance is recog-
               than 3 months (more than 6 months for property loans, and             nised as a doubtful loan or advance and written down accord-
               more than 9 months for local authorities), and loans for which        ingly.
               the counterparty’s financial situation has deteriorated, result-      All restructured loans and advances are immediately down-
               ing in a risk of non-recovery, as well as outstandings that           graded to compromised doubtful outstandings when the
               are the subject of collection proceedings.                            debtor does not meet the scheduled due dates.
               Likewise, all loans and advances to a counterparty, as soon
               as the counterparty has a loan or advance entered in doubtful         t Borrowings
               loans and advances, are treated as doubtful loans or advances         These are entered under liabilities at their redemption value.
               in accordance with the “contagion” principle. For groups,             The relevant interest is recognised in the income statement
               the contagion principle is applied on a case-by-case basis.           on an accruals basis.

               Loans granted by savings funds are virtually all guaranteed           3. Portfolio of available-for-sale securities
               by local authorities or by the State.                                 The rules for valuing securities in the available-for-sale port-
                                                                                     folio vary according to the category to which such securities
               Compromised doubtful loans and advances are identified                belong.
               for accounting purposes among doubtful loans and advances.
               Compromised doubtful loans and advances are outstand-                 t Fixed-income transferable securities
               ings for which the counterparty’s credit status is such that,         When first entered, they are recorded at their nominal amount,
               after a reasonable period of classification under doubtful            and the difference between the purchase price and the nom-
               outstandings, no reclassification as a sound outstanding is           inal amount (premium or discount) is recorded separately.




| 108 |   Caisse des Dépôts | Financial Report 2005
At the closing date:                                               4. Portfolio of held-to-maturity investments
■ the premium or discount is progressively taken to profit and     This portfolio comprises debt securities and negotiable debt
loss using the yield-to-maturity method (fixed-rate debt secu-     instruments acquired with an intention of long-term holding,
rities) or straight-line method (variable-rate debt securities)    as a rule until maturity, and backed overall by resources cons-
over the residual life of the security;                            idered to have at least the same duration.
■ a provision for impairment is established separately for         Such securities obey the general accounting rules govern-
each heading where there is an unrealised loss, assessed           ing the held-to-maturity portfolio:
on the basis of the last market price for the month of the         ■ non-provisioning of unrealised gains arising from a mere
period in question.                                                increase in rates;
                                                                   ■ spreading of premiums or discounts over the remaining
Fixed-income transferable securities are, on disposal, dealt       life of the securities using the yield-to-maturity method for
with using the “First-in, first-out” (FIFO) method.                negotiable debt instruments and fixed-rate debt securities,
The accounting principles relating to the treatment of credit      and using the straight-line method for other debt securities.
risk are applied to fixed-income securities.                       In the event of any disposals, they would be dealt with using
                                                                   the “First-in, first-out” (FIFO) method.
t Inflation-indexed debt securities                                The accounting principles relating to the treatment of credit
In the absence of specific regulations applicable to credit        risk are applied to fixed-income securities.
institutions, the indexation of the nominal amount of infla-
tion-indexed securities may be recognised using one of the         The investment code brought into force by the Letter of the
following methods:                                                 French Minister of Economy and Finance dated 18 February
■ recognition of the indexation of the nominal amount on           2002 governs the nature of the securities that may be held in
the disposal or maturity of the debt security,                     the held-to-maturity portfolio.
■ spreading over the period still to run of the debt security
or recognition in income or charges for the period.                5. Portfolio securities
                                                                   Portfolio securities are investments made regularly with the
By analogy with the treatment recommended by Article               aim of deriving therefrom a capital gain in the medium term
R332-19 of the French Insurance Code (Code des Assu-               without the intention of investing long-term in the development
rances), as amended by French Decree No.2002-1535 dated            of the business or of actively participating in the operational
24 December 2002, the gain or loss arising from the index-         management of the issuing undertaking. Such securities are
ation of the nominal amount of the debt securities to the          recognised at their acquisition price.
general level of prices is recognised in income or charges         They are measured at the lower of their historical cost or of
for the period.                                                    their value in use.
                                                                   The value in use is determined by taking account of the gen-
t Variable-yield transferable securities                           eral outlook for change in the issuer and of the holding period.
These are recognised at purchase price and valued at the           For quoted companies, the average of the market prices
closing and on disposals using the weighted average cost           recorded over a sufficiently long period, taking account of the
method. A provision is recorded when the weighted aver-            contemplated holding period, represents the value in use.
age cost exceeds the final market price for the month of           A provision, determined on the basis of the value in use, is
December, or the future price of execution of commitments          recognised, in the case of unrealised losses determined for
received or at the latest-known net asset value of UCITS.          each line of securities, without set-off against unrealised
                                                                   gains.
t Negotiable debt securities and other interbank                   The savings funds’ portfolio securities comprise, at the present
market securities                                                  time, venture capital funds (Fonds Communs de Placement
On their acquisition, securities are recognised at their nom-      à Risque (FCPR)) invested in unquoted shares, within the
inal amount, and the difference between the purchase price         framework permitted by the investment code brought into
and the nominal amount (premium or discount) is recognised         force by the Letter of the French Minister of Economy and
separately.                                                        Finance dated 18 February 2002.
On the closing date, this is progressively taken to profit and
loss, using the yield-to-maturity method, over the security’s
residual life. Provisions are recorded according to the credit-
worthiness of the issuers and by reference to market indicators.




                                                                                                  Caisse des Dépôts | Financial Report 2005   | 109 |
Savings Funds




               6. Temporary disposals of securities                                  Pursuant to the regulations adopted on 23 November 2004
               t  Loans and borrowings of securities                                 by the Comité de la Réglementation Comptable, the fair
               Loaned securities are entered under a specific heading in bal-        value of the financial instruments has been disclosed since
               ance sheet assets at the carrying value of the securities removed     2004 (cf. Note 15-b).
               from the portfolio, using the “last-in, first out” (LIFO) method.
               At the closing date, they are valued according to the rules           9. Foreign currency transactions
               for the portfolio of origin.                                          Assets and liabilities in foreign currencies are translated at
                                                                                     the exchange rates at the closing date.
               Borrowings of securities are recognised, at the market value          Spot transactions are measured at the spot rate, while for-
               on the date of the borrowing, in balance sheet assets under           ward transactions are measured at the rate for the term still
               the category of “trading securities”, and in balance sheet            to run.
               liabilities, in order to record the security liability with respect
               to the lender. At the closing date, these items are revalued          Since 10 February 2005, foreign exchange positions have been
               on the basis of the market price.                                     hedged by currency swaps for each fund concerned. The level
               The remuneration relating to a loan or borrowing of securities        of the merged accounts is now close to zero on each currency
               is recognised on an accruals basis in profit and loss.                for each fund, instead of being a liability of an equivalent amount
                                                                                     to that of the securities in assets.
               t Repurchase and resale agreements
               with actual delivery                                                  10. Provisions
               Securities given under repurchase agreements with actual              Provisions are established to cover certain losses arising
               delivery are kept in their original portfolio and continue to be      from programmes of loans granted at a rate below the refi-
               valued according to the rules applicable to such. They are            nancing cost.
               the subject of a specific entry in the balance sheet. Con-
               versely, securities received under resale agreements with             Since the 2004 financial year, provisions established for neg-
               actual delivery are entered under a specific heading of assets        ative margins on loans are calculated on the basis of the
               representing the receivable thus generated. They are there-           balance that is likely to be utilised from the current lending
               fore not revalued.                                                    facility (and no longer from the total authorised loans),
               The remuneration is recorded on accruals basis, under                 increased by outstandings recognised in the balance sheet
               income for resale agreements and under charges for repur-             (loans disbursed) and in the statement of off-balance sheet
               chase agreements.                                                     items (offers of loans, undertakings to grant loans, and loans
                                                                                     agreed but not yet disbursed).
               7. Off-balance sheet commitments (excluding
               interest-rate swap agreements)                                        ■ For LEP, a part of the PLI (Prêt Locatif Intermédiaire) loans
               Off-balance sheet commitments given mainly relate to loans            was refinanced from borrowings, and the loss has been pro-
               that are agreed but not yet paid.                                     vided for.
               Off-balance sheet commitments received cover State guar-              ■ The loss generated by the loans granted at a reduced rate,
               antees, guarantees from credit institutions, guarantees from          below the refinancing cost, is the subject of a provision. This
               local authorities and commitments in respect of securities.           concerns PLA-TS (Prêt Locatif Aidé Très Social) loans to
                                                                                     problem neighbourhoods granted under the plan for the
               Local authorities guarantee virtually all the loans granted by        suburbs, emergency housing loans and loans for demolition
               the savings funds.                                                    and rebuilding, PEX (Prêts Expérimentaux) loans, PHARE
               Signature commitments follow the same accounting princi-              (Prêt Habitat, Amélioration, Restructuration Extension) loans,
               ples and policies as those applied to credits.                        PLUS (Prêt Locatif à Usage Social) loans, and rehabilitation
                                                                                     loans indexed to Livret A rates, as well as PPU (Prêt Projet
               8. Interest-rate swap agreements                                      Urbain) loans granted from LEP funds.
               Interest-rate swap agreements entered into by the savings
               funds in order to hedge clearly-identified specific transac-          The provision for the Livret A funds is shared between these
               tions are shown under off-balance sheet items.                        funds to the extent that these resources finance loans of an
               The charges and income generated by such instruments are              identical nature and with identical rates.
               recognised symmetrically with the results for the hedged item.
               The accounting principles relating to the treatment of credit         For certain loans, in particular for urban renewal loans, out-
               risk are applied to forward financial instruments.                    side parties (UESL – Union d’Economie Social de Logement
                                                                                     and Central Sector of Caisse des Dépôts) subsidise, under
                                                                                     agreements relating to the lending facilities and subsidy


| 110 |   Caisse des Dépôts | Financial Report 2005
terms, the resource of the savings funds, so that the final       of an adequate level of liquidity, enable this transformation
borrower enjoys a preferential rate. In this case, the provi-     (of deposits into loans) to be effected without incurring sig-
sion recognised by the savings fund is calculated on a basis      nificant mismatch risks.
corresponding to the method indicated in the second sub-
paragraph of this paragraph 10, solely on the difference          Interest-rate and liquidity risks are measured by asset and
between:                                                          liability management tools, which take account, at a very
• the refinancing cost; and                                       refined level, of the characteristics of the assets and liabili-
• the lending rate, increased by the subsidy(ies) granted by      ties and that enable, in particular, changes in the balance
such parties.                                                     sheet to be simulated according to various assumptions as
                                                                  to collection of deposits and payments of loans. In a con-
11. Funds for General Banking Risks (FGBR)                        cern for maximum security for depositors, the portfolios of
Funds for general banking risks, designed to deal with the        financial assets are dimensioned and structured so as to
general banking risks inherent in the activity of lender and      provide real possibilities of adapting to potential changes in
investor in the markets are established for each of the savings   liquidity risk, while protecting the current margin and the
funds so that, by supplementing the specific reserves for         future margin against interest-rate fluctuations.
each savings fund, they help achieve the minimum level of
capital required by the banking regulations applicable to         Following the announcement, on 21 July 2003, of the intro-
counterparty risks and to market risks.                           duction of an indexation rule for regulated rates, the tools
                                                                  for forecasting and measuring risks were adapted to the
The level of capital required is covered by the reserves pre-     new rule.
scribed by the regulations, when these exist, the fund for
general banking risk, available reserves, retained earnings       At the same time, the savings funds, in anticipation of future
and profit.                                                       capital requirement standards, have gauged the effects of these
                                                                  standards, in particular in relation to interest-rate hedging.
With regard to the method of calculating the FGBR, the
option adopted is to provide minimum cover for the said           2. Risk management
risks through:                                                    The Caisse des Dépôts group’s Risks and Internal Control
■ a component meeting the requirement to apply the Euro-          Division is based on three levels: business area, institution and
pean Capital Adequacy Ratio, based on the assets of each          group. General Control, at group level, sets the standards and
fund,                                                             validates the tools and methods; Risk Management, at the
■ a component meeting the requirement to cover market             public institution level, is responsible for monitoring the finan-
risks, based on the market assets of each fund, by estab-         cial risks of the portfolios.
lishing the reserves prescribed by the regulations and then
by establishing the FGBR.                                         With regard to credit risks, a Counterparty Risks Committee,
                                                                  which meets monthly, is responsible for:
The additional amount by reference to the minimum is a            ■ defining and monitoring credit risk policy,
measure to cover future capital requirements, which may           ■ determining the methodology for fixing counterparty limits,
result both from changes in the regulations and in asset          on a proposal from Risk Management,
management policy.                                                ■ fixing the limits for each counterparty, on a proposal from
                                                                  Risk Management, given that each portfolio has independent
For the Epargne-Logement section, the FGBR also includes          limits.
a component designed to satisfy the provision requiring the
capital of the section to be maintained at the level observed     Risk Management is responsible for daily monitoring of com-
at 31 December 2003 (cf. I-4 Introductory Note).                  pliance with the limits by each finance department. It bases
                                                                  its proposals for limits upon global analyses mainly effected
IV - Financial information on                                     using analyses from Ixis CIB, rating agencies and information
market risks                                                      in the public domain.

1. Assets/liabilities management
The savings funds are exposed to a mismatch risk since
they make medium and long-term loans out of resources
repayable on demand. However, the stability of the deposits,
seen historically, and the indexation of the majority of the
loans to the rate of the deposits, as well as the maintaining


                                                                                                  Caisse des Dépôts | Financial Report 2005   | 111 |
Savings Funds




               Note 1 - Treasury and interbank transactions - assets
                                                                                                           31.12.2005              31.12.2005               31.12.2004
               (in millions of euros)                                                                    after transfer*         before transfer
               Ordinary accounts                                                                                      2,182                   8,308                    1,418
                                        (1)
               Current accounts                                                                                         906                   7,032                       49
               Current accounts representing mandatory reserves                                                       1,267                   1,267                    1,366
               Accrued interest                                                                                           9                       9                        3
               Total                                                                                                  2,182                   8,308                    1,418

               (1) The public institution Caisse des Dépôts (Central Sector) is the banker for the savings funds. As such, it centralises cash resources and provides all ser-
               vices of a banking nature.
               * Details of the transactions involved in the transfer to La Poste at 31 December 2005 in connection with the creation of La Banque Postale:
               - transfer of current accounts in respect of CNE Livret B of an amount of €3,034 million,
               - transfer of current accounts in respect of CNE Livret d’Epargne Populaire of an amount of €1,903 million,
               - transfer of current accounts in respect of Livret Jeunes of an amount of €1,117 million,
               - transfer of current accounts in respect of CNE Epargne-Logement of an amount of €65 million,
               - transfer of current accounts in respect of CNE Plan d’Epargne Populaire of an amount of €7 million.




| 112 |   Caisse des Dépôts | Financial Report 2005
Note 2 - Financing transactions
To comply with the provisions of Comité de la Réglementation Comptable (CRC) (French Accounting Regulation Committee)
Regulation No.2000-03, financing transactions have been broken down into loans and other advances to credit institutions
and customer transactions. The presentation by type of financing is maintained, however, in order to supplement the infor-
mation given in particular in respect of regulated loans.

a. Investment loans
                                                            31.12.2005        Payments         Redemp-        Early       Other         31.12.2004
                                                            before and                           tions      redemp-    movements (1)
(in millions of euros)                                     after transfer                                     tions
Investment loans                                                 2,827                             (653)        (73)            (11)       3,564
New uses                                                           329               241              (1)                                     89
Capital                                                          3,156               241           (654)        (73)            (11)       3,653
Accrued interest not yet payable                                    93                                                          (22)         115
Instalments instructed to be collected                               1                                                            1
Instalments past due                                                 2                                                                          2
Total                                                            3,252               241           (654)        (73)           (32)        3,770
Of which:
- doubtful capital and incidentals                                   63                                                         (28)          91
- provisions                                                        (10)                                                          3          (13)
Of which total for credits institutions                              23                              (1)                         (6)          30
Of which total customer transactions                             3,229               241           (653)        (73)           (26)        3,740

(1) Including restructured loans and changes in doubtful outstandings net of related provisions.




                                                                                                                Caisse des Dépôts | Financial Report 2005   | 113 |
Savings Funds




               Note 2 - Continued
               b. Housing loans
                                                                        31.12.2005         Disburse-       Repayments           Early             Other             31.12.2004
                                                                        before and          ments                            repayments        movements (1)
               (in millions of euros)                                  after transfer
               PLA (2)(3)                                                   46,972             2,416           (1,081)              (479)              250                 45,866
               PAM and PRV (3)                                               5,803               384             (649)              (156)                3                  6,221
               PLI and PHEBE                                                 4,618               600             (131)                (29)             146                  4,032
               PAP                                                             122                               (229)                  (1)              1                    351
               PPU                                                           2,616               183             (230)              (193)                5                  2,851
               Other (3)                                                    19,999               961           (1,397)              (231)             (346)                21,012
               Capital                                                      80,130             4,544           (3,717)            (1,089)               59                 80,333
               Accrued interest not yet payable                              4,196                                                                    (547)                 4,743
               Instalments instructed
               to be collected                                                    49                                                                    (31)                  80
               Instalments past due                                                7                                                                      1                    6
               Total                                                        84 ,382            4,544           (3,717)            (1,089)             (518)                85,162
               Of which total for credit institutions                         2,324              374             (293)                (13)            (163)                 2,417
               Of which total customer transactions                         82,058             4,170           (3,424)            (1,076)             (357)                82,745

               (1) Including recoveries or amortisations of premiums and discounts, capitalised interest, changes in doubtful outstandings net of related provisions and
               restructured loans.
               (2) Excluding subsidies.
               (3) Restructured PLA, PAM and HLMA/HLMO loans have been reclassified under other housing loans.




               Doubtful capital and provisions are analysed as follows:

                                                                        31.12.2005 before and after transfer                 31.12.2004
                                                                       Capital      Provisions       Net        Capital       Provisions                                     Net
               (in millions of euros)                               and incidentals                          and incidentals
               PLA                                                            2,447              (254)             2,193             2,517               (277)              2,240
               PAM and PRV                                                      266                (20)              246               296                 (16)               280
               PLI and PHEBE                                                     53                  (3)              50                53                   (3)               50
               PPU                                                               75                  (3)              72                89                   (4)               85
               Other                                                            874                (98)              776               959               (101)                858
               Total                                                          3,715              (378)             3,337             3,914              (401)               3,513
               Of which total for credit institutions                             11              (11)                                   11               (11)
               Of which total customer transactions                           3,704              (367)             3,337             3,903              (390)               3,513




| 114 |   Caisse des Dépôts | Financial Report 2005
c. Other loans
                                                          31.12.2005      31.12.2005        Disbur-       Repayments           Early         Other          31.12.2004
                                                             after          before         sements                          repayments    movements (1)
(in millions of euros)                                     transfer*       transfer

Codevi loans
BDPME (2)                                                     3,561            3,561             146                                                             3,415
SDR                                                             307              307                               (65)                                            372
Other                                                             7                7                                                                                 7
Capital                                                       3,875            3,875             146               (65)                                          3,794
Accrued interest not yet payable                                126              126                                                                 (1)           127
Instalments instructed to be collected                            1                1                                                                 (4)             5
Instalments past due                                              2                2                                                                 (4)             6
Total                                                         4,004            4,004             146              (65)                               (9)         3,932

Epargne-Logement loans
Capital                                                                      18,392            3,937           (1,539)          (1,343)             (18)       17,355
Accrued interest not yet payable                                                 49                                                                   1            48
Instalments instructed to be collected                                            9                                                                   8             1
Instalments past due                                                              1                                                                                 1
Total                                                                        18,451            3,937           (1,539)         (1,343)              (9)        17,405
of which:
- doubtful capital and incidentals                                                 33                                                                 4              29
- provisions                                                                      (23)                                                               (5)            (18)

Miscellaneous other loans
CNCEP                                                           870              870                             (116)                                             986
Other loans (3)                                                 969            1,183                                (2)                              (3)         1,188
Capital                                                       1,839            2,053                             (118)                                (3)        2,174
Accrued interest not yet payable                                 29               31                                                                (11)            42
Instalments instructed to be collected                                                                                                              (41)            41

                                                              1,868           2,084                              (118)                             (55)          2,257
of which:
- doubtful capital and incidentals (3)                          973              973                                                                  4            969
- provisions (3)                                                  (4)              (4)                                                                1              (5)
Total other loans                                             5,872          24,539            4,083           (1,722)         (1,343)             (73)        23,594
Of which total for credit institutions                        4,897            5,113             146             (181)                             (70)          5,218
Of which total customer transactions                            975          19,426            3,937           (1,541)         (1,343)               (3)       18,376

(1) Including changes in doubtful outstandings net of related provisions.
(2) Setting up in July 2005 of a fixed-rate loan of €146 million for BDPME at a rate below the cost of the CODEVI resource, covered by a provision (cf. Note 10).
(3) Relates to a restructured loan, downgraded to a doubtful loan, of an amount of €969 million after a discount of €13 million. This loan is fully guaranteed by the
French State, and this guarantee is shown under off-balance sheet items (cf. Note 15). The accrued interest not yet payable has been written down in full in
accordance with banking regulations.
* Details of the transfer transactions at 31 December 2005 in connection with the creation of La Banque Postale:
- transfer to La Poste of CNE Epargne-Logement loans of an amount of €18,451 million, including €33 million of doubtful capital and €23 million of provisions
- transfer to La Banque Postale of Crédit Logement participating loans of an amount of €216 million.




                                                                                                                          Caisse des Dépôts | Financial Report 2005        | 115 |
Savings Funds




          Note 3 - Transactions in securities
          a. Analysis by nature and type of portfolio, net of provisions

                                               31.12.2005 after transfer*                      31.12.2005 before transfer                                 31.12.2004
                                           Available-      Held-to-        Portfolio      Available-       Held-to-        Portfolio     Available-       Held-to-      Portfolio
                                            for-sale       maturity       securities       for-sale        maturity       securities      for-sale        maturity securities
          (in millions of euros)           securities     securities                      securities      securities                     securities      securities (1)

           Treasury bills and similar securities
          Government securities                21,685           5,072                         21,869          10,786                         22,925          11,467
          Treasury certificates                13,397                                         14,468             570                         23,122           1,167
          Loaned securities                     7,095           6,348                          7,095           6,348                          6,419           5,848
          - government securities               4,197           6,348                          4,197           6,348                          3,351           5,631
          - treasury certificates               2,898                                          2,898                                          3,068             217
          Sub-total by portfolio               42,177         11,420                          43,432          17,704                         52,466          18,482
          Total all portfolios                                53,597                                          61,136                                         70,948
           Debentures and other fixed-income securities
          Debentures                           21,039           4,636                         24,698           7,826                         17,284           8,752
          Other fixed-income
          securities                           14,655           1,181                         15,219           1,686                         22,567           1,709
          Loaned securities                     1,099                                          1,099                                             48
          - debentures                          1,074                                          1,074                                             48
          - other fixed-income
          securities                                25                                             25
          Sub-total by portfolio               36,793           5,817                         41,016           9,512                         39,899          10,461
          Total all portfolios                                42,610                                          50,528                                         50,360
           Equities and other variable-yield securities
          Equities                              6,906                                          6,906                                           6,197
          Other variable-
          yield securities
          (including UCITS) (2)                   449                               61            449                              61            478                          32
          Sub-total by portfolio                7,355                               61         7,355                               61          6,675                          32
          Total all portfolios                                  7,416                                          7,416                                          6,707
          Sub-total by portfolio               86,325         17,237                61        91,803          27,216               61        99,040          28,943           32
          Total all portfolios                               103,623                                        119,080                                        128,015

          (1) Additional contribution made on 30 June 2004 to the held-to-maturity portfolio of the Epargne-Logement section, first by transfer from the available-for-sale
          portfolio of an amount of €3,325 million, and then by market purchases.
          (2) Including dedicated UCITS units –FCP Obligation Epargne– disposed of during the 4th quarter of 2004, i.e. a reduction in volume of €43 million, generating
          a capital gain on disposal of €35 million.
          * Details of the transactions involved in the transfer to La Poste on 31 December 2005 in connection with the creation of La Banque Postale:
          - transfer of Treasury bills and similar securities of the CNE Epargne-Logement and CNE Plan d'Epargne Populaire sections, of amounts, respectively, of
          €7,095 million (of which €811 million in the available-for-sale portfolio and €6,284 million in the held-to-maturity portfolio) and €444 million.
          - transfer of debentures and other fixed-income securities of the CNE Epargne-Logement and CNE Plan d'Epargne Populaire sections, of amounts respectively
          of €7,397 million (of which €3,701 million in the available-for-sale portfolio and €3,696 million in the held-to-maturity portfolio) and €521 million.




| 116 |      Caisse des Dépôts | Financial Report 2005
b. Additional information

                                        31.12.2005 after transfer            31.12.2005 before transfer                     31.12.2004
                                Available-    Held-to-     Portfolio   Available-    Held-to-     Portfolio   Available-     Held-to-     Portfolio
                                 for-sale     maturity    securities    for-sale     maturity    securities    for-sale      maturity    securities
(in millions of euros)          securities   securities                securities   securities                securities    securities

 Treasury bills and similar securities
Gross value                        40,384       10,966                    41,612       17,021                     50,030        17,641
Premiums/discounts                  1,040          100                     1,047          159                      1,372          273
Accrued interest                      777          354                       802          524                      1,065          568
Provisions                            (24)                                   (29)                                     (1)
Net carrying value
by portfolio                       42,177       11,420                    43,432       17,704                    52,466        18,482
Net carrying value
all portfolios                                  53,597                                 61,136                                  70,948
Market value of available-
for-sale and held-to-maturity
securities                         43,573       12,000                    44,831       18,523                    54,026        19,526
Redemption value of
available-for-sale and
held-to-maturity securities        40,384       10,966                    41,612       17,021                    50,030        17,641
 Debentures and other fixed-income securities
Gross value                        35,954        5,629                    40,031        9,203                    39,214        10,078
Premiums/discounts                    362           25                       449           36                       272            82
Accrued interest                      522          163                       606          276                       432           304
Provisions                            (45)                                   (70)          (3)                      (19)           (3)
Net carrying value
by portfolio                       36,793        5,817                    41,016        9,512                    39,899        10,461
Net carrying value
all portfolios                                  42,610                                 50,528                                  50,360
Market value of available-
for-sale and held-to-maturity
securities                         37,485        6,108                    41,716        9,962                    40,785        10,999
Redemption value of
available-for-sale and
held-to-maturity securities        35,954        5,629                    40,031        9,203                    39,214        10,078
 Equities and other variable-income securities
Gross value                         7,631                        61        7,631                        61         7,398                          33
Accrued income                          4                                      4                                       8
Provisions                           (280)                                  (280)                                   (731)                         (1)
Net carrying value                  7,355                        61        7,355                        61         6,675                          32
Net carrying value
all portfolios                                   7,416                                  7,416                                    6,707
Market value of available-
for-sale and portfolio
securities                         12,014                        72       12,014                        72         9,716                          33




                                                                                                          Caisse des Dépôts | Financial Report 2005     | 117 |
Savings Funds




               Note 4 - Participating interests and other interests held long-term
                                                                                                             31.12.2005                               31.12.2004
               (in millions of euros)                                                                 before and after transfer
               Participating interests                                                                                                                            1
               Gross                                                                                                                                              1
               Total                                                                                                                                              1




               Note 5 - Tangible fixed assets
                                                                                                             31.12.2005                               31.12.2004
               (in millions of euros)                                                                 before and after transfer
               Land reserves
               Gross                                                                                                                                              1
               Provisions                                                                                                                                        (1)
               Total                                                                                                                                             0




               Note 6 - Prepayments and accrued income and other assets
                                                                                                      31.12.2005             31.12.2005                31.12.2004
               (in millions of euros)                                                                 after transfer*      before transfer
               Other assets                                                                                          9                     9                     20
               Accrued subsidies                                                                                     8                     8                     10
               - accrued PLA subsidies                                                                               4                     4                      8
               - accrued PAM subsidies                                                                               4                     4                      2
               Other sundry debtors                                                                                  1                     1                     10
               Prepayments and accrued income                                                                      37                   101                      25
               Accrued income                                                                                                             63                      1
               - accrued Epargne-Logement premium                                                                                         13                      1
               - accrued commission refunds                                                                                               48
               - other accrued income                                                                                                      2
               Prepaid expenses in respect of financial instruments                                                28                     28                     20
               Adjustment accounts re-forward financial instruments and
               foreign currencies                                                                                    7                     7
               Other prepayments and accrued income                                                                  2                     3                      4
               - in respect of loans                                                                                                       1                      4
               - in respect of securities                                                                            2                     2
               Total                                                                                               46                   110                      45


               * Details of the transactions involved in the transfer to La Poste on 31 December 2005 in connection with the creation of La Banque Postale:
               - transfer of accrued Epargne-Logement premium of an amount of €13 million,
               - transfer of accrued commission refunds in respect of CNE Epargne-Logement of an amount of €48 million,
               - transfer of other accrued income in respect of the CNE Epargne-Logement section relating to payments for early repayments of Epargne-Logement loans
               in December 2005 of an amount of €2 million,
               - transfer of other prepayments and accrued income in respect of the CNE Epargne-Logement section for early repayments of Epargne-Logement loans
               pending allocation, of an amount of €1 million.




| 118 |   Caisse des Dépôts | Financial Report 2005
Note 7 - Treasury and interbank transactions - liabilities
                                                                                              31.12.2005              31.12.2005                  31.12.2004
(in millions of euros)                                                                       after transfer*         before transfer
Ordinary accounts                                                                                                                                          268
                         (1)
Current accounts                                                                                                                                           263
Accrued interest                                                                                                                                             5
Term loans                                                                                              1,310                    1,526                   1,657
Loans from CFF (PLI)                                                                                       722                     722                     727
Other loans from CFF                                                                                       127                     127                     138
Loans from Ixis CIB (PPU) (2)                                                                                                                               50
Loans taken over from CGLLS                                                                                430                     430                     486
Advances from the Central Sector                                                                                                   216                     225
Accrued interest                                                                                            31                      31                      31
Other amounts owed to credit institutions                                                               2,806                    2,806                   2,249
Securities given under repurchase agreements with actual delivery                                       2,799                    2,799                   2,247
Accrued interest                                                                                            7                        7                       2
Total                                                                                                   4,116                    4,332                   4,174

(1) The public institution Caisse des Dépôts (Central Sector) is the banker for the savings funds: as such, it centralises cash resources and provides all ser-
vices of a banking nature.
(2) Ixis CIB loan repaid in February 2005.
* Details of the transactions involved in the transfer to La Poste on 31 December 2005 in connection with the creation of La Banque Postale:
- transfer of loans regarding the refinancing of the participating loans to Crédit Logement of an amount of €216 million.




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Savings Funds




               Note 8 - Deposits
               To comply with the provisions of French Comité de la Réglementation Comptable (Accounting Regulation Committee) (CRC)
               Regulation No.2000-03, centralised savings bank deposits have been broken down into amounts owed to credit institu-
               tions and customer transactions. The presentation by type of fund is maintained, however, in order to supplement the infor-
               mation given in respect of regulated savings deposits.

               a. Centralised deposits

                                             Deposits       Capitalised          Deposits           Deposits           Deposits         Capitalised          Deposits
                                                at            interest         at 31.12.2005      at 31.12.2005           at              interest              at
                                            01.01.2006           at                after              before          01.01.2005             at             31.12.2004
               (in millions of euros)                       01.01.2006(1)        transfer*           transfer                           01.01.2005 (1)
               CEP-Livret A                      65,194              1,373             63,821             63,821           66,113               1,422             64,691
               CNE-Livrets A & B                 47,004                982             46,022             49,008           50,148               1,059             49,089
               LEP                               48,901              1,444             47,457             49,302           50,675               1,770             48,905
               Livret Jeunes                                                                               1,075            1,119                  42              1,077
               CODEVI (2)                          6,119                                 6,119             6,119            8,648                                  8,648
               Epargne-logement                                                                           30,531           30,825                 901             29,924
               CNE PEP                                                                                       909            1,026                  26              1,000
               Crédit Mutuel
               Livret Bleu (3)                   16,549                                16,549             16,549           15,990                                 15,990
               Total                            183,767              3,799            179,968           217,314           224,544               5,220           219,324
               Of which total for
               credit institutions              136,763              2,817            133,946           121,113           126,220               2,484           123,736
               Of which total
               customer transactions             47,004                982             46,022             96,201           98,324               2,736             95,588

               (1) Capitalised interest takes into account cumulative interest accrued for the period, as well as specific items (method of centralisation of LEP).
               It is therefore not directly comparable with the accrued interest shown in the table below.
               (2) CODEVI deposits are the subject of an issue of securities for industrial development (Titre pour le Développement Industriel -TDI). The latter are
               remunerated at the CODEVI rate plus 1.5% within the centralisation rate limit; and the CODEVI rate applies thereafter. The capitalised portion on deposits
               is centralised the following year.
               (3) Until 31 December 1998, pursuant to the memorandum of 27 April 1991 relating to the public-interest applications of Crédit Mutuel’s Livret Bleu,
               Caisse des Dépôts centralised 85% of the funds deposited with Crédit Mutuel, of which 15% were invested in liquid assets, and the other 85% advanced to
               Livret A to fund social housing. Under the agreement dated 31 December 1998, Crédit Mutuel centralises 100% of its deposits at Caisse des Dépôts;
               the Livret Bleu deposits are split between CEP Livret A and CNE Livrets A & B for 60% and 40%, respectively, i.e. €9,930 and €6,620 million at 31
               December 2005 (€9,594 and €6,396 million at 31 December 2004).
               * Details of the transactions involved in the transfer to La Poste on 31 December 2005 in connection with the creation of La Banque Postale:
               - transfer of CNE Livret B deposits of an amount of €2,986 million.
               - transfer of 15% of deposits on CNE Livret d’Epargne Populaire at the end of November 2005, in the normal way, of an amount of €1,845 million and
               reclassification of the deposits on La Banque Postale Livret d’Epargne Populaire, which continue to be centralised at the CDC under transactions with credit
               institutions of an amount of €10,604 million,
               - transfer of deposits on Livret Jeunes of €1,075 million,
               - reclassification of deposits on CODEVI as transactions with credit institutions of an amount of €2,229 million, relating to CNE deposits that have become
               Banque Postale deposits,
               - transfer of CNE Epargne-Logement deposits of an amount of €30,531 million,
               - transfer of CNE PEP deposits of an amount of €909 million.




| 120 |   Caisse des Dépôts | Financial Report 2005
b. Accrued interest on deposits

                                                                                           31.12.2005             31.12.2005                   31.12.2004
(in millions of euros)                                                                    after transfer*        before transfer
CEP-Livret A                                                                                         1,375                  1,375                   1,425
CNE-Livrets A & B                                                                                      985                  1,021                   1,062
LEP (1)                                                                                              1,357                  1,415                   1,699
Livret Jeunes                                                                                                                  42                      44
CODEVI                                                                                                 134                    134                     237
Epargne-Logement                                                                                                              908                     905
CNE-PEP                                                                                                                        23                      26
Total                                                                                                3,851                  4,918                   5,398
Of which total for credit institutions                                                               2,864                  2,531                   2,887
Of which total customer transactions                                                                   987                  2,387                   2,511

(1) The accrued interest on LEPs disregards interest for the current month, for the bank networks and CEP, shown under sundry creditors for
€98 million at 31 December 2005 (€101 million at 31 December 2004), as the relevant deposits are centralised only in the following month.
* Details of the transactions involved in the transfer to La Poste on 31 December 2005 in connection with the creation of La Banque Postale:
- transfer of accrued interest on CNE-Livret B deposits of an amount of €36 million,
- transfer of accrued interest on CNE-LEP deposits of an amount of €58 million,
- transfer of accrued interest on Livret Jeunes deposits of an amount of €42 million,
- transfer of accrued interest on CNE Epargne-Logement deposits of an amount of €908 million,
- transfer of accrued interest on CNE-PEP deposits of an amount of €23 million.




c. Withholdings from accrued interest on deposits
These are withholdings in full discharge of any liability and various contributions assessed on taxed savings products that are
still to be paid.

                                                                                           31.12.2005             31.12.2005                   31.12.2004
(in millions of euros)                                                                    after transfer*        before transfer
CNE-Livret B                                                                                             13                     25
Epargne-Logement                                                                                                                17                     6
Total                                                                                                    13                     42                     6

* Details of the transactions involved in the transfer to La Poste on 31 December 2005 in connection with the creation of La Banque Postale:
- transfer of withholdings from accrued interest on CNE Epargne-Logement deposits of an amount of €17 million,
- transfer of withholdings from accrued interest on CNE-Livret B deposits of an amount of €12 million.




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Savings Funds




               Note 9 - Accrued expenses and deferred income and other liabilities
                                                                                                                31.12.2005              31.12.2005                   31.12.2004
               (in millions of euros)                                                                          after transfer*         before transfer
               Other liabilities                                                                                             132                      136                      702
               Accounts payable                                                                                               25                       29                       11
               Other sundry creditors                                                                                        107                      107                      691
               - accrued State levy                                                                                           98                       98                      682
               - earnings on CFF special fund to be paid to the State                                                          9                        9                        9
               Accrued expenses and deferred income                                                                        3,001                    3,003                   2,653
               Accrued expenses                                                                                              329                      329                      383
               - accrued remuneration to networks                                                                            228                      228                      282
               - accrued interest on LEP deposits                                                                             99                       99                      101
               - other accrued expenses                                                                                        2                        2
               Deferred income                                                                                             2,042                    2,042                   2,102
               - in respect of subsidies                                                                                   1,679                    1,679                   1,721
               - in respect of financial instruments                                                                         363                      363                     381
               Adjustment accounts in respect of forward financial instruments
               and foreign currencies                                                                                        186                      187                      152
               Other accrued expenses and deferred income                                                                    444                      445                       16
               - in respect of loans and securities                                                                          110                      111                       16
               - other (1)                                                                                                   334                      334
               Total                                                                                                       3,133                    3,139                   3,355
               (1) Counterpart of the funds made available by La Poste to cover the amount of the mandatory reserves created by Caisse des Dépôts on La Banque Postale’s behalf.
               * Details of the transactions involved in the transfer to La Poste on 31 December 2005 in connection with the creation of La Banque Postale:
               - transfer of accounts payable in respect of the CNE Epargne-Logement section of an amount of €4 million,
               - transfer of other accrued expenses and deferred income in respect of loans of the CNE Epargne-Logement section of an amount of €1 million,
               - transfer of adjustment accounts in respect of financial instruments of the CNE Epargne-Logement section of an amount of €1 million.




               Details of subsidies.
               Subsidies are written back to the income statement over the life of the loans to which they relate.
               These concern:
               - subsidies for direct PLA loans, of which €4 million were still to be received at 31 December 2005 (€8 million at 31 December 2004),
               - subsidies for PAM, of which €4 million were still to be received at 31 December 2005 (€2 million at 31 December 2004).
               These therefore appear under “prepayments and accrued income and other assets”.



                                                                                                                  31.12.2005                              31.12.2004
               (in millions of euros)                                                                      before and after transfer
                                                                                                                  CEP           CNE                        CEP               CNE
                                        (1)
               Gross subsidies                                                                                     2,233              1,087              2,165             1,058
               Written back to income statement                                                                     (825)              (621)              (711)             (579)
               Inter-section eliminations (2)                                                                       (195)                                 (212)
               Sub-total                                                                                           1,213                466              1,242                479
               Total                                                                                                     1,679                                1,721

               (1) Of which subsidies in respect of PRU (prêts renouvellement urbain - urban renewal loans): CEP-Livret A: €142 million; CNE Livret A and B: €102 million
               at 31 December 2005 (€120 and €84 million respectively at 31 December 2004).
               (2) This is the subsidy paid by the CE reserve and guarantee fund to the CEP-Livret A section to offset the loss corresponding to the difference between the rate
               for the loans and the cost of the Livret A resource. This subsidy applies to Prêt Locatif Aidé Très Social (PLA-TS) loans, emergency housing loans and loans granted
               in connection with the plan for the suburbs. Given the amounts paid since 1995 and the change in valuation in 2004, €45 million was written back to the income
               statement at 31 December 2005 and €116 million at 31 December 2004.




| 122 |   Caisse des Dépôts | Financial Report 2005
Note 10 - Provisions
                                                                                                        31.12.2005                 31.12.2005                     31.12.2004
(in millions of euros)                                                                                 after transfer*            before transfer
PLI and PPU (LEP) (1)                                                                                                  227                        227                       275
OSEO, SDR and FIM loans (CODEVI) (2) (3)                                                                                 3                          3                         2
Geothermal energy (livret A) (2)                                                                                         6                          6                        10
PDR (livret A) (1) (4)                                                                                                  49                         49                        69
Loans at 3.45% (including PLUS) (livret A) (1)                                                                         118                        118                        80
PLA-TS (livret A) (1)                                                                                                  195                        195                       212
PLA CGLLS loans (livret A) (5)                                                                                           5                          5                         6
Claims and litigation (6)                                                                                                8                          8                         9
Epargne-Logement (7)                                                                                                                              611                       599
Hedging instruments                                                                                                       1                         1                         8
Total                                                                                                                  612                     1,223                     1,269

(1) These loans have interest-rate terms that are below the cost of the resource. The related loss is the subject of a provision, adjusted on the basis of the payments;
of the offers shown under off-balance sheet items; and of an assessment as to the reasonable likelihood that the total authorised facilities will be utilised; €132 million relates
to the refinancing of PLI loans.
(2) These loans have been restructured on terms below the cost of the resource. The provision relates to the future loss generated by the restructuring.
(3) Including €1.5 million of provision on the OSEO fixed-rate loan. (cf. Note 2-c).
(4) Regarding the 2002-2005 facility, the urban renewal loans (prêts renouvellement urbain - PRU) are partly subsidised by Union d’Economie Sociale du Logement
(UESL). A provision of €39 million was recorded at 31 December 2005. Regarding the new 2006 facility, such loans will be partly subsidised by UESL and by the
Central Sector. A provision of €10.1 million has been recorded in the savings funds’ accounts.
(5) PLA provision relating to the premium paid on the acquisition of the Caisse de Garantie du Logement Locatif Social (CGLLS) loans.
(6) Including CFF provisions (€4 million).
(7) Specific Epargne-Logement provision for the commitment to grant loans at a rate contractually fixed in advance. It was estimated, on a flat basis, to be 2% of the
total volume of deposits shown at the closings.
* Details of the transactions involved in the transfer to La Poste on 31 December 2005 in connection with the creation of La Banque Postale: transfer of the Epargne-
Logement specific provision of an amount of €611 million.




Note 11 - Fund for General Banking Risks
                                                                                                        31.12.2005                 31.12.2005                     31.12.2004
(in millions of euros)                                                                                 after transfer*            before transfer
General risks (CAD + specific savings risk)
CEP-Livret A                                                                                                           982                        982                       772
CNE-Livrets A and B                                                                                                    626                        626                       522
LEP                                                                                                                    304                        304                       131
Livret Jeunes                                                                                                                                                                 1
CODEVI                                                                                                                   77                       77                         84
Epargne-Logement                                                                                                                                 949                        894
PEP-CNE                                                                                                                                           20                         26
Sub-total                                                                                                           1,989                      2,958                      2,430
Anticipated general risks           (1)



CEP-Livret A                                                                                                           315                        315                       315
CNE-Livrets A and B                                                                                                    210                        210                       210
LEP                                                                                                                    189                        189                       189
Epargne-Logement (2)                                                                                                                                                         49
Sub-total                                                                                                              714                        714                       763
Total                                                                                                               2,703                      3,672                      3,194
 (1) Cf. III-11 Notes to the financial statements.
(2) Pursuant to the administration agreement signed in 2004, the Fund for General Banking Risks (FGBR) of the Epargne-Logement section includes
a component designed to meet the requirement to maintain the section’s equity at the level observed at 31 December 2003 (Cf. I-4 Notes to the financial
statements).
* Details of the transactions involved in the transfer to La Poste on 31 December 2005 in connection with the creation of La Banque Postale:
- transfer of the FGBR of the CNE Epargne-Logement section of an amount of €949 million,
- transfer of the FGBR of the CNE PEP section of an amount of €20 million.




                                                                                                                                       Caisse des Dépôts | Financial Report 2005      | 123 |
Savings Funds




               Note 12 - Equity
               a. Reserves and retained earnings

                                                           31.12.2005             Transfer(7)         31.12.2005             Other              Appropriation          31.12.2004
                                                              after                                     before             movements               of 2004
               (in millions of euros)                       transfer                                   transfer                                 profits/losses
               Reserves
               CEP reserve fund (1) (4) (5)                         1,321                                      1,321                   (820)                 829                1,312
               CNE reserve
               and guarantee fund (1) (4) (5)                       1,002                                      1,002                   (269)                 292                  979
               LEP reserve fund (1) (4)                             1,012                                      1,012                     60                    (5)                957
               Livret Jeunes reserve fund (1)                          55                                         55                                           (8)                 63
               FL (Housing Finance) reserve fund (5)                  628                                        628                    (98)                  69                  657
               Sub-total (A)                                        4,018                                      4,018                (1,126)               1,176                 3,968

               Retained earnings
               CEP-Livrets A (6)                                         7                                          7                     7
               CNE-Livrets A and B (6)                                  10                                         10                     7                                           3
               LEP (6)                                                  17                                         17                    17
               CODEVI (4)                                               36                                         36                   (51)                  51                    36
               Epargne-Logement (6)                                                          (50)                  50                     7                                         43
               CNE-PEP (4) (6)                                                               (11)                  11                   (18)                                        29
               EL reserve fund                                          87                                         87                                           2                   85
               SDR guarantee fund                                        1                                          1                                                                1
               Sub-total (B)                                          158                   (61)                 219                    (31)                  53                   197
                                                     (2)
               SDR guarantee deposits (C)                               13                                         13                                                               13

               Total (A+B+C)                                        4,189                   (61)               4,250                (1,157)               1,229                 4,178
               Interfund elimination
               in respect of reserve funds                           (123)                                       (123)                                        37                  (160)
               Other eliminations                                                                                                         (1)                                        1

               Total (3)                                            (123)                                       (123)                    (1)                  37                  (159)

               Grand total                                          4,066                   (61)               4,127                (1,158)               1,266                 4,019

               (1) The profits and losses appropriated to the reserve funds relate, first, to the profits and losses of the main funds (CEP-Livret A: €729 million; CNE Livrets A and B:
               €266 million; LEP: -€24 million; Livret Jeunes: -€9 million) and, second, to the profits and losses of the reserve funds (CEP: €100 million; CNE : €25 million; LEP:
               €19 million; Livret Jeunes: €1 million).
               (2) Including 1% of the amount of the loans paid to regional development companies (SDRs) from CODEVI funds.
               (3) Relates to the restatement of the internal gains and losses on transfers of loans between funds.
               (4) The CE reserve and guarantee fund made an additional contribution of €9 million to the LEP reserve fund, the PEP made an additional contribution of €19 million
               to the CNE reserve and guarantee fund, and CODEVI made an additional contribution of €51 million to the LEP reserve fund.
               (5) Of which State levy totalling €1,197 million (€811 million from the CE reserve and guarantee fund, €288 million from the CNE reserve and guarantee fund,
               and €98 million from the FL (housing finance) reserve fund).
               (6) Appropriation to retained earnings (€39.9 million) relating to the change in method of amortisation of premiums and discounts on securities.
               (7) Transfer to La Poste on 31 December 2005 of the accumulated reserves of the CNE Epargne-Logement and CNE PEP with all of the assets and liabilities of the
               funds in connection with the creation of La Banque Postale.




| 124 |   Caisse des Dépôts | Financial Report 2005
b) Profits - year ended 31 December 2005

The overall profit amounted to €903 million before transfer and €894 million after transfer. The profits, which are separately
identifiable for each of the funds managed, will be appropriated in accordance with the provisions governing them:

(in millions of euros)                                                                  2005 profits             Reserves(2) Retained earnings
CEP-Livret A                                                                                      487                     487
CEP reserve fund                                                                                    8                       8
CNE Livrets A and B                                                                               169                     169
CNE reserve fund                                                                                   27                      27
LEP                                                                                                80                      80
LEP reserve fund                                                                                   20                      20
Livret Jeunes                                                                                      20                      20
CODEVI                                                                                             16                                              16
Epargne-Logement (3)
CNE- PEP(3)                                                                                          9
Other funds                                                                                         37                     37
Sub-total                                                                                         873                     848                      16
                         (1)
Interfund elimination                                                                               30
Total before transfer                                                                             903
           (3)
Transfer                                                                                            (9)

Total after transfer                                                                              894
(1) Relates to the restatement of the gains and losses on interfund disposals of loans.
(2) Respective reserve fund for each fund.
(3) The earnings for the CNE Epargne-Logement and CNE PEP funds were transferred to La Poste on 31 December 2005 with all the assets and liabilities of
the funds, in connection with the creation of La Banque Postale.




                                                                                                                  Caisse des Dépôts | Financial Report 2005   | 125 |
Savings Funds




               Note 12 - Continued
               c. Equity at 1 January 2006 before State levy (excluding FGBR)
                                                                        01.01.2006                         Appropriation                 31.12.2005 after transfer
                                                           Total         Retained          Reserves             of                   Total      Retained       Reserves
               (in millions of euros)                                    earnings                           2005 profits                         earnings
               CEP-Livret A (4)                              1,823                               1,823                  495             1,328                    7             1,321
               CNE Livrets A and B (4)                       1,208                  2            1,206                  196             1,012                   10             1,002
               LEP (4)                                       1,129                               1,129                  100             1,029                   17             1,012
               Livret Jeunes                                    75                                  75                   20                55                                     55
               CODEVI                                           52                52                                     16                36                   36
               Epargne-Logement
               CNE-PEP (3)
               FL reserve fund                                663                                  663                   35               628                                    628
               EL reserve fund                                 89                 89                                      2                87                   87
               SDR guarantee funds                              1                  1                                                        1                    1
               Sub-total                                     5,040               144             4,896                  864             4,176                 158              4,018
               SDR guarantee deposits                              13                                13                                     13                                     13
                       (1)
               Total                                         5,053               144             4,909                  864             4,189                 158              4,031
                                                     (2)
               Elimination regarding reserve funds             (93)                                 (93)                 30               (123)                                  (123)
               Grand Total                                   4,960               144             4,816                  894             4,066                 158              3,908

               (1) Cumulative profits/losses for each fund, before elimination.
               (2) Relates to the gains and losses on internal interfund loan disposals.
               (3) The earnings of the CNE-PEP fund were transferred to La Poste on 31 December 2005, with all the assets and liabilities of the fund, in connection with the creation
               of La Banque Postale.
               (4) Appropriation to reserves of the retained earnings relating to the change of method for amortising premiums and discounts on securities.

               The 2006 French Finance Law (Loi de Finances 2006) showed an amount of €1,850 million in respect of the levy from the
               savings funds’ reserves.




| 126 |   Caisse des Dépôts | Financial Report 2005
Note 13 - Credit risks on financing transactions
A discount was recognised in respect of certain restructured contracts on below-market terms, equal to the present value
of the difference between the expected future cash flows from the loans before and after restructuring (€13 million).

                                                                                            31.12.2005 after transfer*
                                                  Gross sound             Gross             Gross compro- Provisions (1)                      Total
                                                  outstandings           doubtful           mised doubtful
(in millions of euros)                                                 outstandings         outstandings (1)
Breakdown by geographical region                           89,147                 4,725                     26                 (392)             93,506
Loans to credit institutions                                7,244                                           11                   (11)             7,244
- France                                                    7,244                                           11                   (11)             7,244
Loans to customers                                         81,903                 4,725                     15                 (381)             86,262
- France                                                   81,863                 4,725                     15                 (381)             86,222
- Rest of the world                                            40                                                                                    40
Breakdown by residual term                                 89,147                 4,725                     26                 (392)             93,506
Loans to credit institutions                                7,244                                           11                   (11)             7,244
- less than 3 months                                          160                                           11                   (11)               160
- 3 months to 1 year                                          329                                                                                   329
- 1 to 5 years                                              2,072                                                                                 2,072
- more than 5 years                                         4,683                                                                                 4,683
Loans to customers                                         81,903                 4,725                     15                 (381)             86,262
- less than 3 months                                        4,937                   267                      8                 (250)              4,962
- 3 months to 1 year                                        2,948                   125                                            (6)            3,067
- 1 to 5 years                                             15,616                   674                       3                  (31)            16,262
- more than 5 years                                        58,402                 3,659                       4                  (94)            61,971
Breakdown of customer loans
by sector                                                  81,903                 4,725                     15                 (381)             86,262
Low-cost housing                                           62,371                 2,151                                        (245)             64,277
Local authorities                                           5,996                   142                       5                  (10)             6,133
Public-sector administrations                               1,014                     2                                                           1,016
Public industrial and commercial entities                  10,222                 1,363                       9                (106)             11,488
Private-sector administrations                                970                    67                       1                  (10)             1,028
Commercial companies                                        1,202                 1,000                                          (10)             2,192
Other                                                         128                                                                                   128
Provisions on financing
transactions                                                                       (368)                  (24)                                        (392)
Loans to credit institutions
31.12.2004                                                                                                 (11)                                        (11)
- reclassifications
31.12.2005                                                                                                 (11)                                        (11)
Loans to customers
31.12.2004                                                                         (402)                   (23)                                       (425)
- transfers                                                                        (152)                     (2)                                      (154)
- recoveries                                                                        178                       2                                        180
- reclassifications                                                                   (4)                     4
- other movements (2)                                                                12                       6                                         18
31.12.2005                                                                         (368)                   (13)                                       (381)

(1) Interest relating to compromised doubtful outstandings is still recognised and written down.
(2) Relates to the transfer to La Poste of net impairment charges and recoveries regarding Epargne-Logement loans.
* Detail of the transactions involved in the transfer to La Poste at 31 December 2005 in connection with the creation of La Banque Postale:
- transfer of doubtful debts and provisions regarding Epargne-Logement loans –respectively €33 million and –€23 million (cf. Note 2-c).




                                                                                                                      Caisse des Dépôts | Financial Report 2005   | 127 |
Savings Funds




               Note 14 - Credit risks on fixed-income securities
               As the securities portfolio of the savings funds mainly comprises securities issued by institutions with a AAA rating and
               has no counterparty default risk, no security was downgraded to doubtful status at 31 December 2005.



                                                                                                            Gross sound outstandings
               (in millions of euros)                                                                         31.12.2005 after transfer
               Breakdown by currency                                                                                            96,207
               Available-for-sale securities                                                                                    78,970
               - euro                                                                                                           78,970
               Held-to-maturity securities                                                                                      17,237
               - euro                                                                                                           17,237
               Breakdown by residual term                                                                                       96,207
               Available-for-sale securities                                                                                    78,970
               - less than 3 months                                                                                              1,132
               - 3 months to 1 year                                                                                              4,987
               - 1 to 5 years                                                                                                   39,421
               - more than 5 years                                                                                              33,430
               Held-to-maturity securities                                                                                      17,237
               - less than 3 months                                                                                                229
               - 3 months to 1 year                                                                                                370
               - 1 to 5 years                                                                                                   14,065
               - more than 5 years                                                                                               2,573
               Breakdown by rating (1)                                                                                          96,207
               Available-for-sale securities                                                                                    78,970
               - AAA                                                                                                            63,156
               - AA                                                                                                              9,847
               -A                                                                                                                4,971
               - Other (2)                                                                                                         996
               Held-to-maturity securities                                                                                      17,237
               - AAA                                                                                                            15,476
               - AA                                                                                                              1,301
               -A                                                                                                                  460
               (1) Composite rating of Moody’s, Standard and Poor’s and IBCALT agencies.
               (2) Rating not given.




| 128 |   Caisse des Dépôts | Financial Report 2005
Note 15 - Off-balance sheet commitments
a. Commitments in respect of financing and guarantees,
securities and other commitments given or received

                                                                                                         31.12.2005               31.12.2005                  31.12.2004
(in millions of euros)                                                                               after transfer*          before transfer

 Financing and guarantee commitments and commitments given in respect of securities
Financing commitments
To financial institutions                                                                                         2,718                     2,718                     2,570
Offers of loans                                                                                                   2,162                     2,162                     2,516
- housing loans (1)                                                                                               2,162                     2,162                     2,370
- other loans (2)                                                                                                                                                       146
Undertakings to grant loans                                                                                           1                          1                        1
- housing loans                                                                                                       1                          1                        1
Loans agreed but not yet disbursed                                                                                  555                        555                        1
- housing loans                                                                                                     555                        555                        1
Other financing commitments (3)                                                                                                                                          52
To customers                                                                                                    11,032                    12,619                      8,367
Offers of loans                                                                                                  8,598                     8,598                      4,929
- investment loans                                                                                                  11                        11
- housing loans                                                                                                  8,587                     8,587                      4,929
Undertakings to grant loans                                                                                        595                       595                        752
- housing loans                                                                                                    595                       595                        752
Loans agreed but not yet disbursed                                                                               1,839                     3,426                      2,686
- investment loans                                                                                                  69                        69                         38
- housing loans                                                                                                  1,770                     1,770                      1,856
- home savings (Epargne-Logement) loans                                                                                                    1,587                        792
Guarantee commitments
Other guarantees given to credit institutions (4)                                                                     38                        38                        38
Commitments given in respect of securities
Securities to be delivered                                                                                                                                                  5

 Financing and guarantee commitments and commitments received in respect of securities
Guarantee commitments
Guarantee commitments received from the State and similar (5)                                                   76,999                    76,999                    77,345
Guarantee commitments received from credit institutions                                                          3,554                     3,554                     3,608
Other guarantee commitments received                                                                               109                       109                       115
Commitments received in respect of securities
Securities receivable                                                                                               201                        201                       193

 Other commitments given and received
Other commitments given
Securities pledged as collateral (6)                                                                                350                        350                       350
Undertakings to purchase securities (7)                                                                             101                        101
Undertakings to sell properties                                                                                                                                             2
Other commitments received
Subsidies receivable in respect of PLA loans (8)                                                                        8                         8                       11

(1) CDC refinances financial institutions issuing PLI and PLS loans. It committed itself to refinancing €1,630 million of PLS loans and €160 million of PLI loans for 2005, and
€1,630 million of PLS loans and €160 million of PLI loans for 2004. The unutilised total facility at 31 December 2005 was €2,531 million: i.e. €804 million for 2004 and
€1,727 million for 2005.
(2) Commitment given to CEPME.
(3) This commitment concerns Ixis CIB.
(4) This commitment concerns CFF.
(5) Includes a commitment received from the State, guaranteeing a loan of €985 million –excluding discount, but including accrued interest not yet payable and amounts
past due– classified as doubtful (cf. Note 2c).
(6) Securities pledged under the Relit Grande Vitesse settlement/delivery system.
(7) Offer to purchase SANEF securities.
(8) This subsidy relates to loan agreements (PLA loans granted in French Overseas Départements) that have been signed but for which the relevant funds have not yet
been disbursed. With each payment of loans, these subsidies are allocated to balance sheet liabilities (cf. Note 9-b).
* Details of the transactions involved in the transfer to La Poste on 31 December 2005 in connection with the creation of La Banque Postale:
- transfer of financing commitments in respect of Epargne-Logement Loans of an amount of €1,587 million.



                                                                                                                                    Caisse des Dépôts | Financial Report 2005     | 129 |
Savings Funds




               Note 15 - Continued
               b. Commitments relating to spot and forward foreign exchange transactions
               and foreign currency lending/borrowing transactions

               Setting-up, from February 2005, of foreign currency swap transactions to cover positions regarding securities in “out”
               currencies.

                                                                                                                                         31.12.2005              31.12.2004
               (in millions of euros))                                                                                                after transfer

                Forward foreign exchange transactions
               Euros receivable against foreign currencies to be delivered
               Euros receivable                                                                                                                   733
               Foreign currencies to be delivered                                                                                                 731

                Unaccrued premiums/discounts
               To be delivered                                                                                                                       4




               c. Forward financial instruments
               Interest-rate swaps concern:
               ■ €1,412 million (€1,539 million at 31.12.2004) of interest-rate swaps relating to loans:
                 • €1,091 million (€1,145 million at 31.12.2004) in connection with the refinancing of CFF’s Intermediate Rental (Prêts
                   Locatifs Intermédiaires – PLI) loans;
                 • €321 million (€381 million at 31.12.2004) in connection with the refinancing of variable-rate loans to regional develop-
                   ment companies (SDRs);
               ■ €12,154 million (€10,355 million at 31.12.2004) of securities hedging transactions exclusively in the form of asset swaps.
                 The counterparties with which these asset swap transactions have been negotiated are banks with an AA (or better) rating.


                                                                                         31.12.2005                    31.12.2005                        31.12.2004
                                                                                       after transfer*               before transfer
                                                                                   Purchase/      Sale/           Purchase/     Sale/            Purchase/           Sale/
               (in millions of euros)                                              Borrowing      Loan            Borrowing     Loan             Borrowing           Loan

                Forward financial instruments
               Over-the-counter markets                                                13,565          13,565         13,591          13,591          11,894          11,894
               Interest-rate swaps (1)                                                 13,565          13,565         13,591          13,591          11,894          11,894
               - fair value (2)                                                           763             519            777             520           3,802           3,150

                Options
               Over-the-counter markets                                                                                   124                               19
               Caps                                                                                                       124                               19

               (1) Relates to the nominal amount of the commitment.
               (2) Information on the fair value of financial instruments is given in accordance with the new regulation, adopted on 23 November 2004 by the Comité de
               Réglementation Comptable, relating to the transposition into French law of the European “fair value” directives on derivative financial instruments (cf. III-8
               Introductory Note).
               The fair value, information obtained from the management system, represents the valuation of the swaps on the basis of the market data at 31 December
               2005. As these transactions are hedging swaps, the fair value shown does not reflect the current structure of the Savings Funds transactions.

               * Details of the transactions involved in the transfer to La Poste on 31 December 2005 in connection with the creation of La Banque Postale:
               - transfer of commitments given in respect of forward financial instruments of the Epargne-Logement fund of an amount of €26 million,
               - transfer of commitments received in respect of options of the Epargne-Logement fund of an amount of €124 million.




| 130 |   Caisse des Dépôts | Financial Report 2005
Note 16 - Credit risks in respect of off-balance sheet items
As signature commitments or commitments in respect of forward financial instruments did not present any default risk at
31 December 2005, no commitment was downgraded to doubtful status.

a. Signature commitments
                                                                                           Gross sound outstandings
(in millions of euros)                                                                     at 31.12.2005 after transfer
Breakdown by geographical area
Guarantee commitments given                                                                                             38
- France                                                                                                                38




b. Forward financial instruments (over-the-counter transactions)
                                                                                           Gross sound outstandings
(in millions of euros)                                                                     at 31.12.2005 after transfer
Breakdown by geographical area
Forward financial instruments                                                                                      13,565
- France                                                                                                            8,652
- Europe area                                                                                                       4,913
Breakdown by residual term
Forward financial instruments                                                                                      13,565
- less than 3 months                                                                                                  456
- from 3 months to 1 year                                                                                             827
- 1 to 5 years                                                                                                      3,265
- more than 5 years                                                                                                 9,017




                                                                                         Caisse des Dépôts | Financial Report 2005   | 131 |
Savings Funds




               Note 17 - Interest receivable and similar income
               a. Treasury and interbank transactions

               Securities taken under resale agreements with actual delivery and current accounts are remunerated in accordance with
               market practices.

               (in millions of euros)                                                                                                  31.12.2005             31.12.2004
               Income from current accounts                                                                                                      39                      32
               Income from securities taken under resale agreements with actual delivery                                                         12                      95

               Total                                                                                                                             51                    127




               b. Financing transactions
               (in millions of euros)                                                                                                 31.12.2005              31.12.2004
                           (1)
               Interest                                                                                                                      4,083                   4,264
               Investment loans                                                                                                                203                     255
               Housing loans                                                                                                                 2,770                   2,917
               Other loans                                                                                                                   1,110                   1,092
               Early repayment penalties (2)                                                                                                                             40
               Investment loans                                                                                                                                          16
               Housing loans                                                                                                                                             17
               Other loans                                                                                                                                                7
               Subsidies written back to the income statement, net (3)                                                                         111                       99
               Investment loans                                                                                                                  1                        2
               Housing loans                                                                                                                   110                       97
               Gains or losses (4)                                                                                                             133                     206
               Housing loans                                                                                                                   133                     206
               Net profit on hedging transactions                                                                                                  9                     11
               Other loans                                                                                                                         9                     11
               Net impairment charges and recoveries                                                                                             16                      65
               Investment loans                                                                                                                   1                       3
               Housing loans                                                                                                                     15                      60
               Other loans                                                                                                                                                2

               Total                                                                                                                         4,352                   4,685
               Investment loans                                                                                                                205                     276
               Housing loans                                                                                                                 3,028                   3,297
               Other loans                                                                                                                   1,119                   1,112
               Of which total for credit institutions                                                                                          298                     324

               Of which total customer transactions                                                                                          4,054                   4,361

               (1) Including compensating interest.
               (2) An amount of €63 million of early repayment penalties was reclassified as administrative commissions at 31 December 2005 (cf. Note 20-b).
               (3) Net of elimination of the Prêt Locatif Aidé Très Social (PLA-TS) subsidy paid by the CE reserve and guarantee fund to CEP Livret A.
               (4) Net of the elimination of the gains and losses remaining in respect of the interfund disposals (cf. Note 12-a), including amortisation of the net premiums
               on loans taken over from Caisse de Garantie du Logement Locatif Social (CGLLS) (€97 million at 31 December 2005 and €170 million at 31 December 2004).




| 132 |   Caisse des Dépôts | Financial Report 2005
c. Income from the portfolio of fixed-income securities

(in millions of euros)                                    31.12.2005           31.12.2004
Available-for-sale securities                                   3,054                 3,121
Treasury bills and similar securities                           1,734                 1,895
- government securities                                         1,062                 1,209
- treasury certificates                                           672                   686
Debentures                                                        751                   657
Other fixed-income securities                                     569                   569
Held-to-maturity securities                                     1,235                 1,272
Treasury bills and similar securities                             779                   816
- government securities                                           749                   766
- treasury certificates                                            30                    50
Debentures                                                        379                   380
Other fixed-income securities                                      77                    76

Total                                                           4,289                 4,393




                                                          Caisse des Dépôts | Financial Report 2005   | 133 |
Savings Funds




               Note 18 - Interest payable and similar charges
               a. Treasury and interbank transactions
               (in millions of euros)                                                                                                    31.12.2005              31.12.2004
                                                          (1)
               Charges regarding current accounts                                                                                                   (4)                      (9)
               Charges regarding securities given under repurchase agreements with actual delivery (1)                                            (34)                   (102)
               Charges regarding term loans                                                                                                         (4)                      (9)
               - loans from CFF (PLI) (2)                                                                                                         (54)                     (54)
               - other loans from CFF                                                                                                               (2)                      (4)
               - loans from IXIS CIB (PPU)                                                                                                                                   (4)
               - loans taken over from CGLLS (3)                                                                                                   56                       57
               - advances from the Central Sector                                                                                                   (4)                      (4)
               Charges for premiums/discounts (4)                                                                                                 (12)

               Total                                                                                                                              (54)                  (120)
               (1) Securities given under repurchase agreements with actual delivery and current accounts are remunerated in accordance with market practices.
               (2) Including €57 million of interest and €3 million of amortisation of discounts at 31 December 2005 on PLI-PLS refinancing loans assigned to CFF by Ixis CIB.
               (3) Relates to the recovery of the premium on CGLLS loans.
               (4) Setting-up, from February 2005, of currency swaps in connection with the global management of the foreign exchange position.




| 134 |   Caisse des Dépôts | Financial Report 2005
b. Deposits
(in millions of euros)                                                                          31.12.2005          31.12.2004
Interest paid to depositors                                                                         (5,653)              (6,032)
CEP - Livret A                                                                                      (1,394)              (1,443)
CNE - Livrets A and B                                                                               (1,044)              (1,073)
LEP                                                                                                 (1,555)              (1,840)
Livret Jeunes                                                                                           (40)                 (44)
CODEVI                                                                                                (302)                (313)
Epargne-Logement                                                                                      (903)                (904)
PEP                                                                                                     (24)                 (28)
Livret Bleu                                                                                           (391)                (387)
Withholdings from deposits in full settlement of liability                                             (94)                  (75)
CNE - Livret B                                                                                          (13)                 (12)
Epargne-Logement                                                                                        (78)                 (59)
PEP                                                                                                       (3)                  (4)

Total                                                                                               (5,747)              (6,107)
Of which total for credit institutions                                                              (3,162)              (3,429)
Of which total customer transactions                                                                (2,585)              (2,678)


These charges represent:
■ Regulated interest on the various livrets (passbook deposit accounts). The rates paid were as follows:
- Livret A: 2.25% from 1 August 2003 to 31 July 2005, and 2% from 1 August 2005. From 1 August 2004, the rates on the
first livrets are equal to the arithmetical mean of the monthly average of, on the one hand, 3-month Euribor and, on the other
hand, inflation in France measured by the movements over twelve months in the INSEE consumer price index for all house-
holds, for the latest month for which this data is known, raised by a quarter point, with rounding to the nearest quarter point
or failing this to the next higher quarter point;
- CNE Livret B: 2.25% from 16 September 2003 to 15 September 2005, and 2% from 16 September 2005;
- LEP: 4.25% from 1 July 2000 to 31 July 2004, 3.25% from 1 August 2004 to 31 July 2005, and 3% from 1 August 2005;
- Livret Jeunes: 4.25% from 1 October 2000 to 15 September 2005, and 4% from 16 September 2005;
- Epargne-Logement:
   • plan: rate, excluding premium, according to generations; 2.50% from 1 August 2003;
   • livrets: 1.50% from 1 August 2003 to 31 July 2005, and 1.25% from 1 August 2005;
- Livret Bleu :
   • for individuals: 2.45% from 1 August 2003 to 31 July 2005, and 2.20% from 1 August 2005;
   • for corporates: 2.37% from August 2003 to 31 July 2005, and 2.11% from 1 August 2005.
Pursuant to Article L221-18 of the French Monetary and Financial Code, it has no longer been possible, since
25 September 2003, to open new PEP accounts. For existing PEP accounts, the operating terms and conditions remain unchanged.
The interest on CNE PEP accounts, which is fixed each year for the following year, was 3.9% for 2004 and 3.5% for 2005.
■ Interest on industrial development securities (TDI) issued in representation of CODEVI deposits (3.75% from 1 August 2003
to 31 July 2005, and 3.50% since 1 August 2005, cf. Note 8-a).


c. Fixed-income securities portfolio
As these are hedging transactions, charges are offset by symmetrical income from the hedged underlyings.

(in millions of euros)                                                                          31.12.2005          31.12.2004
Micro hedging                                                                                         (234)               (139)
- Interest-rate swaps                                                                                 (234)               (139)

Total                                                                                                 (234)                (139)




                                                                                               Caisse des Dépôts | Financial Report 2005   | 135 |
Savings Funds




               Note 19 - Income from variable-yield securities
               (in millions of euros)                                                                                                          31.12.2005               31.12.2004
               Equities                                                                                                                                 260                      198
               UCITS                                                                                                                                      2                        1
               Other                                                                                                                                      3                        2

               Total                                                                                                                                    265                      201




               Note 20 - Net commissions
               a. Remuneration of collection networks

               (in millions of euros)                                                                                                          31.12.2005               31.12.2004
                                    (1)
               CEP - Livret AP                                                                                                                         (715)                     (781)
               CNE - Livrets A and B (1)                                                                                                               (695)                     (739)
               LEP                                                                                                                                     (330)                     (330)
               Livret Jeunes                                                                                                                              (8)                       (8)
               Epargne-Logement (2)                                                                                                                    (421)                     (500)
               PEP                                                                                                                                        (6)                       (9)
               Livret Bleu (1)                                                                                                                         (197)                     (205)

               Total                                                                                                                                (2,372)                   (2,572)
               Of which total for credit institutions                                                                                               (1,119)                   (1,190)
               Of which total customer transactions                                                                                                 (1,253)                   (1,382)

               (1) From 1 January 2005 and then from 1 November 2005, the authorities decided a 0.10 point reduction in the commissions on collection for CNE (Caisse Nationale
               d’Epargne) Livret A, CNE Livret A and Livret B and Crédit Mutuel Livret Bleu i.e. a total 0.2 point reduction in 2005 (cf. I-1 Notes to the financial statements).
               (2) Following the setting-up, from January 2004, of the new agreement relating to the terms for the centralising of the funds and to the financial administration of CNE
               home-purchase savings, La Poste has new remuneration terms.



               b. Other commissions
                                                                                                         31.12.2005                                    31.12.2004
               (in millions of euros)                                                                 Income                  Charges             Income         Charges
               Loan administration commissions (1)                                                           63                                            1
               Other commissions (2)                                                                                                 (15)                                         (15)
               Sub-total                                                                                     63                      (15)                  1                     (15)
               Net Total                                                                                          48                                            (14)

               (1) Reclassification of early repayment penalties fees and loan restructuring as loan administration commissions and no longer as other interest income from
               loans (totalling €63 million at 31 December 2005 – €40 million at 31 December 2004 – cf. Note 17-b).
               (2) Including custody fees paid to the depository IXIS CIB (€15 million at 31 December 2005 – €14 million at 31 December 2004).




| 136 |   Caisse des Dépôts | Financial Report 2005
Note 21 - Gains or losses on trading portfolio
          transactions
(in millions of euros)                                                                                                31.12.2005              31.12.2004
Net loss on CFF swap                                                                                                            (17)                   (18)
Net charges/recoveries in respect of financial instruments (1)                                                                   16

Total                                                                                                                            (1)                   (18)

(1) Including €10 million at 31 December 2005 of recovery of provisions on swaps relating to PLI loans from Crédit Foncier de France (CFF). This transaction
was recognised under cost of risk at 31 December 2004.



Note 22 - Gains or losses on available-for-sale portfolio
          transactions
a. Profit on disposal of available-for-sale securities
(in millions of euros)                                                                                                31.12.2005              31.12.2004
Fixed-income securities                                                                                                        348                     234
Treasury bills and similar securities                                                                                          208                     202
- government securities                                                                                                        174                     187
- treasury certificates                                                                                                         34                      15
Debentures                                                                                                                      89                      13
Other fixed-income securities                                                                                                   51                      19
Variable-yield securities                                                                                                      124                     438
Equities                                                                                                                       107                     256
UCITS                                                                                                                           17                      35
Other variable-yield securities                                                                                                                        147

Total(1)                                                                                                                       472                     672

(1) After allocation of €6 million of transaction expenses at 31 December 2005 (€9 million at 31 December 2004) pursuant to the accounting regulations
regarding the incorporation of such expenses in the cost of the securities.



b. Net impairment charges and recoveries in respect of available-for-sale securities
and similar
                                                                                                                    31.12.2005             31.12.2004
                                                                                                                 Charges net of         Charges net of
(in millions of euros)                                                                                              recoveries             recoveries
Treasury bills and similar securities                                                                                          (29)                     23
Debentures and other fixed-income securities                                                                                   (50)                     13
Equities and other variable-yield securities                                                                                  451                      284

Net Total                                                                                                                     372                      320




                                                                                                                      Caisse des Dépôts | Financial Report 2005   | 137 |
Savings Funds




               Note 23 - Other banking operating income and charges
                                                                                                    31.12.2005                               31.12.2004
               (in millions of euros)                                                           Income                 Charges           Income         Charges
               Profits/losses on tangible fixed assets                                                  2                                           8               (5)
               - income and expenses                                                                                                                8               (1)
               - gains and losses                                                                       2
               - depreciation                                                                                                                                       (4)
               Thirty-year time-bar on CNE - Livret A                                                   4                                           3
               Flat charges - Epargne-Logement                                                                             (12)                                    (11)
               Other (1)                                                                                4                    (3)                    1              (11)
               Sub-total                                                                               10                  (15)                 12                 (27)

               Net Total                                                                                    (5)                                     (15)

               (1) Including a gain of €2 million generated on the transfer of the Crédit Foncier de France (CFF) loans from the CNE Epargne-Logement fund to the CNE
               Livret A fund (cf. I-3 Notes to the financial statements).




               Note 24 - General operating charges
               (in millions of euros)                                                                                              31.12.2005              31.12.2004
                                                                                  (1)
               General operating charges invoiced by Caisse des Dépôts                                                                      (86)                   (91)
               of which:
               - personnel expenses                                                                                                         (21)                   (20)
               - computer expenses                                                                                                            (7)                    (9)
               - other Caisse des Dépôts services                                                                                           (53)                   (53)

               Total                                                                                                                        (86)                   (91)
               (1) The Central Sector provides the following on behalf of the savings funds:
               - banking services: cash centralisation, cash processing, and intermediation for market transactions,
               - administrative services: provision of resources, for example personnel and equipment.
               These are reinvoiced to the savings funds.




| 138 |   Caisse des Dépôts | Financial Report 2005
Note 25 - Cost of risk
(in millions of euros)                                                                                                  31.12.2005              31.12.2004
Net impairment charges and recoveries in respect of doubtful loans and advances                                                     3                     43

Net Total                                                                                                                           3                     43

Transfers to provisions net of recoveries
Loans (1)                                                                                                                          40                    245
CGLLS PLA premium                                                                                                                   1                       (6)
Epargne-Logement                                                                                                                  (12)                    (31)

Net Total                                                                                                                         29                     208

Gains or losses on irrecoverable loans and advances
Investment loans                                                                                                                   (1)                     (4)
Housing loans                                                                                                                      (1)
Other loans (2)                                                                                                                    (1)                    (17)

Net Total                                                                                                                         (3)                    (21)

(1) Recovery in 2004 of provision for loans relating to the change in provision estimate based on the outstandings recognised in the balance sheet and
in off-balance sheet items, as well as an assessment of the reasonable likelihood of the total authorised facilities being utilised.
(2) Concerns a restructured loan of an amount of €948 million after a €13 million discount, which is fully guaranteed by the State and recognised
in off-balance sheet items (cf. Note 2-c and Note 15).




Note 26 - Transfers to the FGBR net of recoveries
(in millions of euros)                                                                                                  31.12.2005              31.12.2004
General risks (CAD + specific savings risk)
CEP - Livret A                                                                                                                  (209)                     (87)
CNE - Livrets A and B                                                                                                           (104)                   (114)
LEP                                                                                                                             (172)                     (32)
Livret Jeunes                                                                                                                       1                        1
CODEVI                                                                                                                              6                        7
Epargne-Logement                                                                                                                  (55)                     80
CNE - PEP                                                                                                                           6                       (1)
Net sub-total                                                                                                                   (527)                  (146)

Anticipated general risks
CEP - Livret A                                                                                                                                            (55)
CNE - Livrets A and B                                                                                                                                     (36)
Epargne-Logement (1)                                                                                                              49                      (49)
Net sub-total                                                                                                                     49                   (140)

Net Total                                                                                                                       (478)                  (286)

(1) Total recovery, at 31 December 2005, of the component of the Fund for General Banking Risks (FGBR) that is designed to maintain risk coverage at a
level at least equal to the cumulative amount of the said items as reflected in the accounts at 31 December 2003 (cf. I-3 Notes to the financial statements),
since the level of equity shown at 31 December 2005 exceeds that shown at 31 December 2003.




                                                                                                                        Caisse des Dépôts | Financial Report 2005   | 139 |
Savings Funds




          Note 27 - Reconciliation of the financial statements after transfer at 31 December 2005
                    with the financial statements before transfer at 31 December 2005
          a. Balance sheet

                                                             31.12.2005                      Changes                        31.12.2005
                                                                after         CNE Epargne-   CNE PEP       Other funds        before
          (in millions of euros)                              transfer         Logement                                      transfer

           Assets
          Interbank and similar transactions                      63,023             7,160         451           6,270           76,904
          Treasury bills and similar securities                   53,597             7,095         444                           61,136
          Loans and advances to credit institutions                9,426                65           7           6,270           15,768
          - ordinary accounts                                      2,182                65           7           6,054            8,308
          - investment loans                                          23                                                             23
          - housing loans                                          2,324                                                          2,324
          - other loans                                            4,897                                            216           5,113
          Customer transactions                                   86,262            18,451                                      104,713
          Other loans and advances to customers                   86,262            18,451                                      104,713
          - investment loans                                       3,229                                                          3,229
          - housing loans                                         82,058                                                         82,058
          - other loans                                              975            18,451                                       19,426
          Debentures, equities and other
          fixed-income and variable-yield securities              50,026             7,397         521                           57,944
          Debentures and other fixed-income securities            42,610             7,397         521                           50,528
          Equities and other variable-yield securities             7,416                                                          7,416
          Other assets                                                    9                                                              9
          Prepayments and accrued income                              37               64                                           101
          Total assets                                           199,357            33,072         972           6,270          239,671

           Liabilities and equity
          Interbank and similar transactions                     140,926                                       (12,950)         127,976
          Amounts owed to credit institutions                    140,926                                        (12,950)        127,976
          - term loans                                             1,310                                            216           1,526
          - other amounts owed to credit institutions              2,806                                                          2,806
          - centralised deposits                                 133,946                                        (12,833)        121,113
               CEP Livret A                                       63,821                                                         63,821
               Livret d’Epargne Populaire                         47,457                                        (10,604)         36,853
               other                                              22,668                                          (2,229)        20,439
          - accrued interest on deposits                           2,864                                            (333)         2,531
          Customer transactions                                   47,022            31,456         931          19,221           98,630
          Amounts owed to customers                               47,022            31,456         931          19,221           98,630
          - centralised deposits                                  46,022            30,531         909          18,739           96,201
               CNE-Livrets A and B                                46,022                                         2,986           49,008
               Epargne-Logement                                                     30,531                                       30,531
               Livret d’Epargne Populaire (1)                                                                   12,449           12,449
               other (2)                                                                           909           3,304            4,213
          - accrued interest on deposits                             987              908           22             470            2,387
          - withholdings from interest payable on deposits            13               17                           12               42
          Other liabilities                                          132                4                                           136
          Accruals and deferred income                             3,001                2              1              (1)         3,003
          Provisions                                                 612              611                                         1,223
          Fund for General Banking Risks (FGBR)                    2,703              949          20                             3,672
          Equity - excluding FGBR                                  4,961               50           20                            5,031
          Ordinary reserves                                        3,909                                                          3,909
          Retained earnings                                          158               50          11                               219
          Unappropriated profit                                      894                            9                               903
          Total liabilities and equity                           199,357            33,072         972           6,270          239,671



| 140 |      Caisse des Dépôts | Financial Report 2005
b. Off-Balance sheet items

                                                                                                                       31.12.2005      Changes      31.12.2005
                                                                                                                      after transfer CNE Epargne- before transfer
(in millions of euros)                                                                                                                Logement

 Financing and guarantee commitments and commitments given in respect of securities
Financing commitments
To credit institutions                                                                                                          2,718                                       2,718
Offers of loans                                                                                                                 2,162                                       2,162
- housing loans                                                                                                                 2,162                                       2,162
Undertakings to grant loans                                                                                                         1                                           1
- housing loans                                                                                                                     1                                           1
Loans agreed but not yet disbursed                                                                                                555                                         555
- housing loans                                                                                                                   555                                         555
To customers                                                                                                                   11,032                (1,587)               12,619
Offers of loans                                                                                                                 8,598                                       8,598
- housing loans                                                                                                                    11                                          11
- investment loans                                                                                                              8,587                                       8,587
Undertakings to grant loans                                                                                                       595                                         595
- housing loans                                                                                                                   595                                         595
Loans agreed but not yet disbursed                                                                                              1,839                (1,587)                3,426
- investment loans                                                                                                                 69                                          69
- housing loans                                                                                                                 1,770                                       1,770
- home savings (Epargne-Logement) loans                                                                                                              (1,587)                1,587
Guarantee commitments
Other guarantees given to credit institutions                                                                                        38                                         38

 Financing and guarantee commitments and commitments received in respect of securities
Guarantee commitments
Guarantee commitments received from the State and similar                                                                      76,999                                      76,999
Guarantee commitments received from credit institutions                                                                         3,554                                       3,554
Other guarantee commitments received                                                                                              109                                         109
Commitments received in respect of securities
Securities receivable                                                                                                              201                                         201

 Other commitments given and received
Other commitments given
Securities pledged as collateral                                                                                                   350                                         350
Undertakings to purchase securities                                                                                                101                                         101
Other commitments received
Subsidies receivable in respect of PLA loans                                                                                           8                                            8

 Commitments given and received in respect of financial instruments
Commitments given
Forward financial instruments                                                                                                  13,565                    (26)              13,591
Commitments received
Forward financial instruments                                                                                                  13,565                     (26)             13,591
Options                                                                                                                                                 (124)                 124




Note 27-a
(1) With centralisation of the inflows (collections)/outflows of funds up to 31 December 2005 inclusive (including a collection of €9 million in respect of the last three days).
(2) With centralisation of the inflows (collections)/outflows of funds up to 30 November 2005 for the Codevi fund (excluding an outflow of €14 million in December,
carried out in the normal way).



                                                                                                                                Caisse des Dépôts | Financial Report 2005               | 141 |
Savings Funds




               Statutory Auditors’ report on the annual financial
               statements of the Savings Funds centralised by
               Caisse des dépôts et consignations
               Financial year ended 31 December 2005



               This is a free translation into English of the Statutory Auditors’ report issued in the French language and is provided solely
               for the convenience of English speaking readers. The Statutory Auditor’s report includes information specifically required by
               French law in all audit reports, whether qualified or not, and this is presented below the opinion on the financial statements.
               This information includes an explanatory paragraph discussing the auditors’ assessments of certain significant accounting
               and auditing matters. These assessments were considered for the purpose of issuing an audit opinion on the financial state-
               ments taken as a whole and not to provide separate assurance on individual account captions or on information taken out-
               side of the financial statements.
               This report should be read in conjunction with, and construed in accordance with, French law and professional auditing
               standard applicable in France.



               Ladies and Gentlemen,                                             Without qualifying the opinion expressed above, we draw
                                                                                 your attention to:
               In performing the task you have entrusted to us, we are sub-      ■ paragraph 6 of note I to the financial statements, which

               mitting to you our report relating to the financial year ended    sets out the changes in accounting policy resulting from the
               31 December 2005, concerning:                                     application of:
               ■ the audit of the accompanying annual financial statements       - Article 13 of CRC Regulation 2002-03 relating to the pro-
               of the Savings Funds centralised by Caisse des dépôts et          cedures for calculating impairment in respect of doubtful out-
               consignations;                                                    standings and compromised doubtful outstandings,
               ■ the justification of our assessments;                           - CRC Regulation 2004-06 relating to the definition, recog-
               ■ the specific verifications.                                     nition and measurement of assets,
               The annual financial statements have been drawn up by             - CRC Regulation 2002-10 relating to the amortisation and
               the Chief Executive Officer. It is our responsibility, on the     depreciation and to the impairment of assets,
               basis of our audit, to express an opinion on these financial      - the change in policy relating to the procedures for spread-
               statements.                                                       ing premiums/discounts on fixed-income debt securities and
                                                                                 of the hedging items relating thereto;
               I - Opinion on the annual financial statements                    ■ notes II and 27 to the financial statements which set out
               We have performed our audit in accordance with the pro-           the presentation method adopted for the financial state-
               fessional standards applicable in France. These standards         ments of the Savings Funds at 31 December 2005, to reflect
               require that we plan and perform the audit to obtain reason-      the funds transferred to La Poste in connection with the cre-
               able assurance that the annual financial statements are free      ation of La Banque Postale (Postal Bank).
               of material misstatements. An audit consists of examining,
               on a test basis, evidence supporting the amounts and dis-         II - Justification of our assessments
               closures in these financial statements. It also consists in       Pursuant to the provisions of Article L. 823-9 of the French
               examining the accounting principles used and significant          commercial Code relating to the justification of our assess-
               estimates made by management and assessing the overall            ments, we draw your attention to the following items.
               manner in which they are presented. We believe that our
               work provides a reasonable basis for the opinion expressed        Changes of method
               below.                                                            As part of our assessment of the accounting rules and prin-
                                                                                 ciples applied by your company, we obtained assurance
               In our opinion, the annual financial statements present fairly    that the changes in accounting policy mentioned above and
               the results of the Savings Funds centralised by Caisse des        the related disclosures were appropriate.
               dépôts et consignations for the year endend 31 December
               2005, and its assets and liabilities and financial position at
               that date, in accordance with French accounting regulations
               and generally accepted accounting principles.




| 142 |   Caisse des Dépôts | Financial Report 2005
Accounting estimates                                             ■  funds for general banking risks have been set aside (note
The provisioning of credit risks and losses resulting from       III §11 and notes 11 and 26 to the financial statements), in
loans granted at interest rates below the refinancing cost,      order to supplement the specific reserves of each savings
and the establishment of funds for general banking risks         fund. As part of our review, we have examined the methods
require the use of significant accounting estimates within       used to calculate these funds so that counterparty risks and
the Savings Funds centralised by Caisse des dépôts et            market risks are adequately covered in accordance with the
consignations:                                                   capital adequacy provisions of banking regulations.
■ provisions have been set aside to cover the credit risks
inherent in its activities (note III §2 and notes 2, 13 and 25   As part of our assessments, we have checked the reason-
to the financial statements). As part of our assessment of       able nature of these estimates.
these estimates, we have examined the control mechanism
for monitoring credit risks, the assessment of the risks of      The assessments were made in the context of our audit of
non-collection and their coverage by specific provisions;        the annual financial statements, taken as a whole, and there-
■ provisions have been set aside to cover certain losses         fore contributed to the formation of the opinion expressed in
resulting from programmes of loans granted at interest rates     the first part of this report.
below the refinancing cost (notes III § 10 and note 10 to the
financial statements). As part of our assessment of these        III - Specific verifications and information
estimates, we have examined the mechanism for determining        We also examined the financial information provided in the
the expected losses and their coverage by provisions for         annual report. We have no observation to make as to the
liabilities and charges;                                         fairness of that information and its consistency with the annu-
                                                                 al financial statements.




                                      Neuilly-sur-Seine and La Défense, 22 March 2006
                                                    The Statutory Auditors

  PricewaterhouseCoopers Audit                                                                   Mazars & Guérard

          Catherine Pariset                                                               Guillaume Potel Pierre Masieri




                                                                                               Caisse des Dépôts | Financial Report 2005   | 143 |
For further information
Caisse des Dépôts annual report, the financial statements, the report of the management
of the savings funds and the corporate social responsibility report are available on Caisse
des Dépôts’ website at www.caissedesdepots.fr

The annual report may be obtained on request from
Caisse des Dépôts’ Corporate Communications Department at:
Caisse des Dépôts
Direction de la communication
56, rue de Lille
75356 Paris 07 SP
France




Published by
Caisse des Dépôts
Corporate Communications Department

Design and production
Publicis Consultants

Illustrations (cover picture)
Publicis Consultants/Stéphane Harbulot




Note to the reader
The financial statements for 2005 relate to the audited consolidated financial statements of
the Caisse des Dépôts group, to the audited financial statements of Caisse des Dépôts
Central Sector, and to the audited financial statements of the savings funds centralised at
Caisse des Dépôts.
The detailed financial statements for the subsidiaries and for other organisations and estab-
lishments and institutions managed by Caisse des Dépôts do not appear in this report, but
in specific reports prepared by those various entities.
             56, rue de Lille
75356 Paris 07 SP - France
 Phone: + 33 1 58 50 00 00
 www.caissedesdepots.fr