Discover Bpifrance's activity report for the year 2017.

1. ACTIVITY
REPORT
2017FEBRUARY 1st
2018

2. Nicolas
Dufourcq
Executive Director

3. 3
A COMMITTED
BANK
at the heart
of a growing
economy
Launch of a new
loan for VSBs
in nine Regions
French Fab, a new
banner to unite French
industry
An Accelerator for SMEs
and midsize companies
with the French
aerospace industries
association GIFAS
Creation of an in-house
HealthTech Accelerator
(biotech, medtech,
e-health, etc.)
A new business
line: Export
Insurance
Creation of the France
Investissement Energie
Environnement-fund
(€100m)
Investment
in Peugeot SA
PSIM, a new part
of Programme
d’Investissements
d’Avenir (PIA)
Bpifrance in 2017 :
Some highlights

4. Guarantee
Financing
International
Innovation
Extrafinancial services
Regional Partnerships
CONTENT

5. Guarantee

6. €1 public funds =
€9.5 risks covered by Bpifrance =
€20 lend to businesses by French banks
6
*Number of companies
*Production of new loans to companies of all sizes
• Activity growth is strong but it
increased less than
the banking market
(up by more than 20%*)
• A tool that reaches traditional
sectors of the economy:
commerce, catering and construction,
for instance, especially in the critical
phases of creation and buy-out
Leverage effect
2015
8
60 421 * 61 238* 61 372*
8.4 8.9
2016 2017
+5%
+6%
PRIVATE BANK LOANS GUARANTEED
IN 2017 (IN €Bn)
Guarantee :
The favoured tool of VSBs

7. FOCUS /Guarantee
7
TYPES OF GRANTED COMPANIES (AS %)
VSBs SMEs
90
10
OVERVIEW (AS %)
0,5
CORSE
French Guyana, Martinique,
Mayotte, Reunion, Guadeloupe :
1.9
4,2
BOURGOGNE
FRANCHE-COMTÉ
8,5
GRAND EST
7,3
HAUTS-DE-FRANCE
3,4
5,0
BRETAGNE
4,6
NORMANDIE
7,2
16,6
AUVERGNE
RHÔNE-ALPES
7,1
PROVENCE-ALPES
CÔTE D’AZUR
7,5
OCCITANIE
9,5
NOUVELLE-
AQUITAINE
PAYS
DE LALOIRE
CENTRE
VAL DELOIRE
16,7
ÎLE-DE-FRANCE

8. Financing

9. €7.2 Bn
in investment loans
(unsecured loans and secured loans)
€5.9 Bn
in short-term financing,
including €4.3 Bn in short-
term authorisations and €1.6
Bn in competitiveness and
employment tax credit
€1.3 Bn
in innovation financing
€14.4 Bn
in loans and grants
for companies
in 2017
+ 6 %
FINANCING / Overview
9

10. COMPETITIVENESS AND EMPLOYMENT
TAX CREDIT PRE-FINANCING
(OUTSTANDING IN €BN)
*number of businesses; one company
may benefit several times
2015
3.6 4.3 5
2016 2017
+19%
+16.3 %
16 322 *
14 964 * 13 320 *
Short term credit (1):
Cash-flow financingforSMEs
TYPES OF GRANTED
BUSINESSES (AS %)
VSBs SMEs Midsize
Companies
Large
Companies
60
21.5
3.515.2
10

11. The share of the most fragile
businesses remained stable.
No more cash-flow stress for
most SMEs
In total
€5.9 Bn
in short-term
financing
LOANS (OUTSTANDING IN €BN)
2015
3.7 3.6
2016 2017
- 3%
3.6
Short term credit (2):
Cash-flow financingforSMEs
11

12. Investment credits:
12
Secured loans Unsecured loans In 2017, the banking market grew by 20%
2017
7.2
2
6.1 6.8
2015 2016
+5%
+20%
+6,3%
+5%
+5.8%
+10%
EVOLUTION OF MARKET SHARE (AS %)
2014
4.2 3.84
2016 2017
4.64.34,1
2.4
2.5
Focus on financing intangible assets and energy
and environmental transition (EET)

13. Leverage effect> 3
(VS > 2 in 2016)
Rule
of 1 to 1
64196200
RECORD YEAR in terms of financing the energy and environmental transition :
for
a total of
€1.2 Bn
€3 Bn
in investment alongside
banks in 2017
40 %
increase in line with
the banking sector
180
Projects
co-financed
i.e.
around
NUMBER OF COMPANIES FINANCED
2016
+3.5%
TYPES OF GRANTED
BUSINESSES (AS %)
VSBs30
60
10
2017
SMEs
Midsize companies
Investment credits:
Focus on financing intangible assets and EET
13

14. International

15. A continuum of solutions
MARKET
PROSPECTING
FINANCING
SALES
FINANCING
DEVELOPMENT
SECURING
PROJECTS
• Credit
insurance
• Exchange
Risk
Insurance
• Unsecured
export loans
• Bonds and working
capital guarantees
• Bank loan guarantees
• Minority share
acquisitions
• Mobilization of
export receivables
• Export credit
(client or supplier)
• Business
France support
for export
development
• Market
Prospection
repayable
advance
• Business
France
counselling
• Foreign
Investment
insurance
• International
project
guarantee
ENTERING
MARKETS
to support businesses abroad
15

16. Aerospace
in Mexico
11 COMPANIES
(SMEs and midsize
companies member
of Bpifrance
Accelerator-
programs
Transport
in Detroit
24 COMPANIES
Agrotech
in Poland and
in Romania,
in partnership
with Crédit Agricole
9 COMPANIES
Agricultural and cold
chain equipment
in India
in partnership
with HSBC
11COMPANIES
2015
12 28
186
2016 2017
119108
2016 2017
EXPORT LOANS (in €M) SHORT-TERM FINANCING PRODUCT "ADVANCE
+ EXPORT" LAUNCHED IN 2015 (IN €M)
EXAMPLES OF EXPORT MISSIONS, CONDUCTED WITH BUSINESS FRANCE IN 2017
+10.2%
x 2.5
x 6
Smart city
In the United Arab
Emirates and Saudi
Arabia
in partnership
with Société Générale
12COMPANIES
International :
Contributing to the competitiveness of French Companies
16

17. EXAMPLES OF COMPANIES SUPPORTED
Prospecting
insurance:
NAVYA
Autonomous
vehicles
United States
& Canada
Exchange risk
insurance:
REEL
Industrial lifting and
materials handling
systems
Asia-Pacific
Pre-Financing
Guarantee:
ERMI 77
Machines for
glassworkers
Europe
Security
guarantees:
CORIOLIS Composites
Materials and composites
technologies
Europe and Asia
Credit
insurance:
BERTHOUD
Agricultural
sprayers
Ukraine
€18.9Bn
in guarantees
granted in Credit
Insurance
Export Insurance products offered to SMEs and midsize companies
Credit insurance Exchange risk insurance
+38%
GROWTH (IN NUMBERS OF SMEs
APPLICATIONS)
+ 33%
SMEs Midsize
companies
Large companies
10
40 50
Credit
insurance
TYPES OF CLIENTS (AS %)
Export Insurance
serving SMEs
60
Exchange
risk
insurance
40
18

18. Innovation

19. FINANCING INNOVATION (IN €BN)
*number of transactions, one company
may benefit several times
2015
5 357* 6 041* 5 421*
2016 2017
1.3 1.3 1.3
Financing of innovative projects thanks to
the Programme d’Investissements d’Avenir
(PIA):
● Smart Angel Project, a €8M grant to a consortium
led by Evolucare group (200 employees and €21M
in turnover): monitoring and support of patients
throughout their care patways.
● EFFI-CLIN Project, a €9.2M grant to a consortium
led by the French biotech OSE Immunotherapeutics:
restoring immunity against cancer through the
development of innovative antibodies.
French Tech Scholarship:
● 701 projects financed totalling €18.7M
● The French Tech Scholarship helps to support
(€45.000 max) innovative startups with a high growth
potential
Seed capital loan
● Quantilia, Fintech BtoB
€600.000 Seed Capital loan and Innovation loan
in addition to $1.2M raised by a partner fund
Innovation
Stable amount of grants
and subsidies
20

20. Maintaining
activity
at a high level
2018 OBJECTIVES /Financing
Development of Export
Credit and financing of EET
and innovation
Growth in unsecured loans
to industrial companies,
united under the French
Fab-banner
Bank loan guarantee
Focus on securing loans for
the critical phases of creation
and buy-out
21

21. A RISING CUSTOMER SATISFACTION SCORE
Source: Study conducted by CSA online and
by telephone with 1,100 Bpifrance clients
Net Promoter Score (in points)
OPERATING RATIO (AS %)
(French banking sector: 69.4 % in 2016*)
* Source: ACPR, « Les chiffres du marché français
de la banque et de l’assurance - 2017"
5461.5
2013 2017
3427
2016
38
2017
42
2014 2015
48 OFFICES
Afrugalbankclosetocustomers
22

22. Investment

23. INVESTMENT / Overview
€1.03 Bn
Fund of funds: investment
in 55 vehicles
€255 M
Venture capital: 80 companies,
including 31 new investments
€143 M
Small cap : investment
in 94 companies
€2.56 Bn
Mid&LargeCap:investment
in40companies
€4 Bn
● €2.1 Bn in equity for investments
in 213 companies and in 56
funds, including
€498 M from the Programme
d’Investissements d’Avenir (PIA)
● 1 exceptional investment of
€1.9 Bn in Peugeot SA
214companies
24

24. NUMBER OF COMPANIES
INVESTED (ALL SECTORS,
INCLUDING REINVESTMENTS)
214195
2016 2017
Mid & Large Cap Venture Capital Small Cap
* Including €1.9 Bn for Peugeot SA, i.e. €700M excluding PSA
2017
1078
1432
2015 2016
+5%
+42
%
+51.5 %
+25 %
+13
%
2958
777
169
132
1 102
191
139
2 560*
255
143
+3%
+33%
+133
%
Equity
Investments (in €M)
25

25. Examples of investments:
• €1.9 Bn in Peugeot SA in order to support the
group in its growth and strategic transformation
• €24 M in Paris Inn Group: launch of
an international hotelchain
• €14 M in AD Education: European
development of a French group
of higher education institutions
• €20 M in Dupont Restauration
• €50 M reinvested in Eren (EET)
• €50 M reinvested in Neoen (EET)
Examples of divestments:
● Schneider Electric SA
● Eiffage
● Quadran (build-up
with Direct Energie)
● Ipackchem Group
● Medipôle Partenaires
● Cylande
● CE BTP
● Domidep
● Nexeya Invest
● SAF
● Delfingen
2017
2560*
777
2015 2016
+133 %
+42%
* Including €1.9 Bn for Peugeot SA,
i.e. €700M excluding PSA
1 102
Equity
Mid & large Cap
26

26. 2017
143132 139
2015 2016
+5 % +3 %
94 transactions, including
72 new investments
of which
67 % are companies opening
up their capital (vs. 53% in 2016)
• Average ticket invested: €1.65 M
• 488 small-caps in the portfolio
Examples of investments:
Tourism Academy, Globesailor, Technique
Solaire, Conecteo, Finsbury, Groupe Mériguet,
La Manufacture française de bougies
78 divestments
partial or full
Examples:
Bio-logic, Evolus and L2C
Equity
Small cap companies
27

27. 169
255
19 * 28*
31*
(out of 80
operations)
191
+13%
+33%
* Number of new investments
VENTURE CAPITAL (IN €M)
201720162015
RAMP UP...
...of our fund of growth Capital « Large Venture » in
response to growing capital market needs:
Investments in companies such as : Doctolib,
iAdvize, Younited Credit...
... of our in-house funds, funded by the Programme
d’Investissements d’Avenir (PIA) and managed
by Bpifrance: Villes de Demain, (Ector, Stanley
Robotics), Écotechnologies (EET), (Apix
Analytics, Safety Line), French Tech Accélération
(Wandercraft, Bioserenity, Snips)
...of PSIM, a program set up to detect the most
innovative companies, laureats of the Concours
Mondial d’Innovation
Equity
Venture capital increase especially
in the growth segment
28

28. Vehicles subscribed:
56 (including 42 new ones)
Average subscription
in the new vehicles:
€22 M
Total decisions for 2017:
800 M
subscribed by third parties
(vs €4 in 2016)
Leverage effect
€1
subscribed by Bpifrance
€5
366
Partner
funds
Nearly
4000
businesses
in the portfolio
* Number of partner funds subscribed
SUBSCRIPTIONS (IN €Bn)
685
44 * 37 * 56 *
701
1 030
2017
+2%
+47%
20162015
Fund of funds
A historic year
29

29. 2013
2017
PORTFOLIO
REGIONAL
FUNDS
17.5% 20.9% 13.6% 27.5%
SMALL
CAP
VENTURE
CAPITAL
Fund of funds
Stability of the Bpifrance footprint
on the different market segments
30

30. 2018 OBJECTIVES / Mid & Large Cap
1
Reinforcing French
mid-size and major
companies
● Support their growth
in France and abroad
● Consolidation
Contributing
to the anchoring in France of capital
and activity of mid-size
and major groups
● By becoming a reference
shareholder
● Promote France as an
attractive country for
industries
2
31

31. 2018 OBJECTIVES / Small Cap Equity
Stimulate more
companies to open up
their capital
67 % of investments
in 2017
Supporting
buy-out
of companies
Reinforcement of
strategic sectors
in industry and services
● Deployment of the Definvest fund
(cybersecurity and defense),
funded by Bpifrance and the
Ministry of Defense and managed
by Bpifrance.
● Deployement of our ETT Fund :
France Investissement Energie
Environnement (EET)
● Double the size of our fund
dedicated to growing companies
in Toursism France
Investissement Tourisme (tourism)
to €200 M.
1 2
3
32

32. 2018 OBJECTIVES / Venture Capital
1 2
3
Accelerating
the potential
of "hyper-growth" startups
● Creation of different funds: Patient
Autonome (e-health), InnoBio 2
(health), Ecotechnologies 2 (new
mobility), Ambition Numérique 2
(digital)
● Deployment of the in-house
HealthTech Hub
for biotechs, medtechs,
and e-health startups
Help increase the
number of large
operations (more than
€20 M)
The size of Large Venture has
been expanded to €1 Bn to
support French successtories
(Doctolib, Younited Credit,
iAdvize,...)
Focus on :
● Artificial Intelligence
● Robotics
● Connected objects
● New mobility
● Cities of tomorrow
● Green energies
33

33. 2018 OBJECTIVES / Fundof funds
FORECAST
2018
Commitments
€800 M
Subscriptions
€830 M
Impacting
the investment capital
industry:
● to ensure a better continuum
of financing
● at the GP-level
● at the LP-level
Deployment of the
€200 M Digital Fund,
managed on behalf of
Caisse des Dépôts
Creation by
Bpifrance of
the first
Accelerator
for GPs
34

34. Extrafinancial
services

35. Extrafinancial services to support companies’ growth
3 pillars
Bpifrance Université offers face-to-
face training and online courses
Bpifrance coordinates a selective
network of independent
consultants
● 4,000 members
● Doubling the number of networking events organised:
62 events in 2017 vs 30 in 2016
● 37 000 participants on 12 October 2017 in Paris
● for the third edition
NETWORKING
From startups to large groups, Bpifrance connects the members of its network
In 2017:
NUMBER OF COMPANIES
COUNSELLED
7500
5500
2016 2017
● 86 startups and 64 clients from major groups supported
● 50 sales agreements or partnerships signed
CONSULTINGTRAINING
36

36. The Accelerators
Intensive executive MBA programs combining consulting, training and networking
Le Hub, the in-house startup Accelerator (launched in 2015)
Duration: from 12 to 18 months
● 64 companies
● 76 financial transactions
● €340 M raised by the startups supported
An in-house Accelerator for SMEs (launched in 2015)
Duration: 24 months
● 180 companies
An in-house Accelerator for mid-size companies (launched in 2016)
Duration: 24 months
● 48 companies
Over 200 entrepreneurs trained at the same
time in the Bpifrance Accelerators
Track record of the first group of alumni:
● 1/3 of SMEs became mid-size companies
● The average turnover increased by 29%
● Export turnover up 29%
● Average workforce increased by 20%
● One year after their graduation, 50%
have become mid-size companies

37. Accelerators in partnership with French Regions
● 53 companies
● Pays de la Loire
● Auvergne-Rhône-Alpes
● Nouvelle-Aquitaine
First sector-specific Accelerator in partnership
with the aerospace industries ( GIFAS )
Launched September 21st
● 38 SMEs and mid-size companies
An in-house HealthTechAccelerator
Launched on December 11th
● 7 biotech and medtech selected
Over 300 entrepreneurs at the same time
in Accelerators created in partnership with
Regions or sectors
NEW IN 2017
The Accelerators
Intensive executive MBA programs combining consulting, training and networking

38. 2020 Goal:
4,000 businesses
graduated from
the Accelerators
run by Bpifrance
and its partners
OBJECTIVES2018 / Accelerators
195
In in-house
Accelerators
including 120
graduates
288
in Accelerators in
partnership with
Regions
260
in sector-specific
Accelerators
863
companies
involved in 26
Accelerators
INCLUDING
Launch in 2018
of three
Accelerators
in partnership with French Regions:
● Île-de-France
● Grand Est
● Centre-Val de Loire
38

39. Regional
partnerships

40. 2017 Regional Partnerships
EXTENSION
of VSBs loans
+ 600 VSBs
For a total of €32 M
nearly €400 M
in additional funds from the Programme
d’Investissements d’Avenir (PIA) to
finance innovation and industry of the
future
€1.5 Bn
for
4,200 businesses
over
€300 M
loans distributed by
French banks
backed by Bpifrance
Bpifrance
partners
with every
French Region
40

41. 2018 OBJECTIVES / Regional Partnerships
Support even
more innovative
companies thanks
to the Programme
d’Investissements
d’Avenir (PIA)
1 2
Strong development
of VSB-loans
3
Continued
growth in the regional
guarantee funds
particularly those
dedicated to the creation
and buy-out of
companies
41

42. ACTIVITY
REPORT
2017FEBRUARY 1st
2018