Financial report – unemployment insurance in 2013

FINANCIAL REPORT
INSURANCE IN
UNEMPLOYMENT
2013

MANAGING DIRECTOR’S MANAGEMENT REPORT 3
CONSOLIDATED FINANCIAL STATEMENTS 6
1 KEY EVENTS OF THE FINANCIAL YEAR 10
1.1 NEW REGULATORY MEASURES DECIDED ON IN 2013 10
1.2 FINANCIAL RELATIONS BETWEEN PÔLE EMPLOI AND UNÉDIC 11
1.3 STATE/UNÉDIC JOINT ARRANGEMENTS 11
1.4 INCREASE IN UNEMPLOYMENT INSURANCE BENEFITS 12
1.5 FINANCING THE UNEMPLOYMENT INSURANCE SCHEME 12
2 ACCOUNTING PRINCIPLES, RULES AND METHODS 14
2.1 GENERAL PRINCIPLES 14
2.2 UNEMPLOYMENT BENEFITS 14
2.3 CONTRIBUTIONS OF AFFILIATES 15
2.4 OTHER ITEMS 15
2.5 PRINCIPLES OF CONSOLIDATION OF UNEMPLOYMENT INSURANCE SCHEME ACCOUNTS 16
3 BALANCE SHEET ANALYSIS 17
3.1 ANALYSIS OF BALANCE SHEET ASSETS 17
3.2 ANALYSIS OF BALANCE SHEET LIABILITIES 21
4 PROFIT AND LOSS ACCOUNT ANALYSIS 24
4.1 TECHNICAL MANAGEMENT 24
4.2 ADMINISTRATIVE MANAGEMENT 27
4.3 FINANCIAL MANAGEMENT 28
4.4 EXTRAORDINARY PROFIT OR LOSS 28
4.5 CORPORATION TAX 28
4.6 FINANCIAL YEAR PROFIT OR LOSS 28
5 ADDITIONAL INFORMATION 29
5.1 ESTIMATE OF THE BENEFITS TO BE PAID TO BENEFIT RECIPIENTS RECEIVING BENEFITS
AT THE END OF THE FINANCIAL YEAR USING UNDERLYING ASSUMPTIONS 29
5.2 INDIVIDUAL RIGHT TO TRAINING 30
5.3 NUMBER OF UNEMPLOYMENT INSURANCE STAFF 30
5.4 SCOPE OF CONSOLIDATION 30
AUDITORS’ REPORT
ON THE CONSOLIDATED ACCOUNTS 31
CONTENTS

3
FINANCIAL REPORT – UNEMPLOYMENT INSURANCE in 2013
Characteristics of 2013
In France as in the whole of the euro zone, 2013
started in an economic context still weakened by the
economic downturn of summer 2011. Over the whole
year, French business grew by +0.4%, as in 2012. On
the one hand, business was supported by the upturn
in household consumption linked to low levels of
inflation, but on the other it was limited by the
marked decline in investment for the second year in
a row.
Due to low levels of growth, job losses in the trade
sector, which started in the second half of 2011, con-tinued
in 2013. However, they levelled off and a few
job creations were observed at the end of the year.
The number of jobseekers required to engage in pos-itive
job searches, unemployed (category A),
increased by 5.3% in 2013. The number of unem-ployed
people receiving benefits from the Unem-ployment
insurance scheme increased slightly over a
year (+1.0%), partly due to the increase in unem-ployed
people coming to the end of their entitlement
to benefits. Thus, at the end of December 2013, there
were 2.3 million unemployed people receiving bene-fits
in France (CVS data, whole of France).
The slower rise in the wage bill and the increase in
benefit payments increased the Unemployment
insurance scheme’s indebtedness over 2013:
• The revenue from main contributions increased by
1.13% primarily under the influence of the rise in the
affiliated wage bill in 2013;
• Benefit expenses increased by +5.17% in one year;
• 4.4% for Unemployment benefits (ARE);
• 13.1% for other benefits.
The discrepancy between the contributions and the
benefits and assistance expenses remains positive,
amounting to 1.74 billion Euros. After taking into
account expenses relating to the validation of bene-fit
recipients’ pension points in particular (1.8 billion
Euros) and the contribution of the Unemployment
insurance scheme to the running of Pôle emploi
(State employment agency) (3.1 billion Euros), the
technical profit margin becomes loss-making by
3.40 billion Euros.
In terms of financing the Unemployment insurance
scheme, it should be emphasised that:
• By order of 29 January 2014, the Ministry of Econ-omy
and Finance granted the French State’s
express guarantee to bond issues to be launched
by Unédic in 2014 up to the limit of 7 billion Euros
in principal plus interest and costs;
• At the end of May 2014, Unédic completed
approximately 70% of its annual programme, i.e.
4.850 billion Euros.
MANAGING DIRECTOR’S
MANAGEMENT REPORT

4
Reconciliation between the change in cash balance
and the accounting result
CHANGE IN CASH BALANCE
The net change in cash balance for the Unemployment insurance transactions is negative by 3,838 million Euros and is reflected in the following way:
Events subsequent to closure
None.
This shows the result of current transactions.
NET ACCOUNTING RESULT
The discrepancy of -191 million Euros between the change in cash balance of -3,838 million Euros and the book loss for the financial year of -3,647 million Euros is primarily explained by:
• The allowance and write-back of allowance transactions for amortisation and provisions reducing the result but without affecting the cash balance, for an amount of +110 million Euros;
• The 331 million Euro increase in the working capital requirements for the business, which generates a cash requirement. This increase corresponds, in particular, to an increase in gross claims against the operators for 152 million Euros and an increase in other claims consisting mainly of the repayment of 181 million Euros to be obtained from our European partners for the partial payment of the benefits paid to cross-border workers.
The net position, which corresponds to the addition of the result for the financial year of -3,647 million Euros and the combined contributions, losses and surpluses of previous years is negative by 17,100 million Euros as at 31 December 2013.
The 575 million Euro discrepancy between Unédic’s negative net position and the “cash position” as at
31 December 2013 (combination of loans, commercial papers and overdrafts net of investments and bank balances) corresponds, in particular:
• To the cash requirement represented, as at
31 December 2013, by the financing of the surplus operating receivables (mainly affiliated receivables) and financial receivables on the operating debts (mainly benefit recipient debts) and financial debts for -2,127 million Euros;
• To the cash requirement represented by the current investments amount as at 31 December 2013 for -461 million Euros;
• To the financing capacity represented by the combination of amortisation and provisions as at
31 December 2013 for +2,013 million Euros (these amounts reduce the results but have no impact on the cash balance).
31 December 2012
31 December 2013
Change
Bond issues
- 8,900
- 13,650
- 4,750
Commercial papers
- 7,945
- 6,920
1,025
Overdraft
- 40
-
40
Investments
1,517
940
- 577
Bank balances
1,531
1,955
424
TOTAL
- 13,837
- 17,675
- 3,838
(in millions of Euros)
MANAGEMENT REPORT

5
2014 and 2015 Outlook
Unédic regularly updates its expenditure and revenue forecasts by taking into account the change in the economic situation.
The latest financial forecast for 2014 and 2015, drawn up in May 2014, is based on the consensus of economists in May, which anticipates a growth of +0.8% in 2014 and +1.3% in 2015. The forecast is based on the regulation of the new unemployment insurance convention of 2014.
As a consequence of weak activity, a further
-27,000 jobs affiliated to the Unemployment insurance scheme would be lost in 2014. In 2015, under the combined effects of the increase in growth, Tax Credit for Competitiveness and Employment (CICE) and the accountability pact, there would be
+66,000 more jobs affiliated to the Unemployment insurance scheme.
In conjunction with low levels of inflation and the high rate of unemployment limiting employees’ bargaining power, the average wage per capita (SMPT) would increase more slowly: 1.5% in 2014 and 1.8% in 2015. Thus, the increase in the wage bill would be limited to +1.4% in 2014. In 2015, it would grow by +1.9%, supported by the increase in employment.
In 2014, total employment would increase as a result of the slowdown in trade job losses and assisted contracts in the non-market sector, but this would be insufficient to offset the momentum of the working population. In total, we would see an increase of +103,200 jobseekers registered with Pôle emploi under category A in 2014. In 2015, with the halting of entrants into future employment arrangements, total employment would slow down. The implementation of the new convention in the second half of 2014 would result in a sharp increase in the number of benefit recipients. Thus, in 2014, unemployed people receiving benefits (ARE) would increase by +109,000 people, +83,000 of whom would be attributable to the sole effect of the convention. In 2015, the number of unemployed people receiving benefits would increase by +55,000 people, +23,000 of whom attributable to the convention.
The application of the new convention would result in a reduction in the deficit estimated at 300 million Euros over the second half of 2014 and 830 million Euros over 2015. The deficit would then increase to -3.7 billion Euros in 2014 and -3.6 billion Euros in 2015, bringing the combined debt to -24.9 billion Euros at the end of the year.
In order to cover the cash requirement, the Board of Directors, which met on 27 June 2013, approved a programme of bond issues of 8 billion Euros, in one or more tranches, with a maximum term of 10 years.
Five new bond issues were successfully launched from March to April 2014:
• 2.5 billion Euros at 10 years at the rate of 2.375%;
• 1.5 billion Euros at 7 years at the rate of 1.5%;
• 0.150 billion additional Euros at 4 years at the rate of 2.125%;
• 0.500 billion additional Euros at 9 years at the rate of 2.250%.
These bond issues benefit from the State guarantee.
In brief, the May 2014 expenditure and revenue forecasts for 2014 and 2015 would be as follows:
2014 Forecast
2015 Forecast
Total revenue
33,803
34,559
Total expenditure
37,754
38,148
Change in cash balance
-3,746
-3,589
NET BANK INDEBTEDNESS POSITION
-21,334
-24,923
MANAGEMENT REPORT

6 FINANCIAL REPORT – UNEMPLOYMENT INSURANCE in 2013
CONSOLIDATED
FINANCIAL STATEMENTS
2013 2012
FIXED ASSETS 158.7 170.5
Intangible fixed assets 0.8 0.5
Tangible fixed assets 132.6 143.7
Financial fixed assets 25.3 26.3
CIRCULATING ASSETS 8,066.7 7,862.0
Receivables 4,680.7 4,590.4
Benefit receivables 277.9 261.2
Affiliated receivables 4,402.8 4,329.2
Other receivables 484.9 216.5
Marketable securities 940.4 1,517.1
Available capital 1,955.9 1,531.0
Prepaid expenses 4.8 7.0
DEFERRED EXPENSES 11.1 7.4
BOND REDEMPTION PREMIUMS 18.4 12.1
TOTAL ASSETS 8,254.9 8,052.0
Consolidated balance sheet - Unemployment insurance
ASSETS

7
2013 2012
NET FINANCIAL POSITION -17,099.9 -13,453.2
Reserves 0.8 0.8
Retained earnings -13,454.0 -10,610.8
Result for the financial year -3,646.7 -2,843.2
PROVISIONS FOR CONTINGENCIES AND EXPENSES 50.1 55.8
DEBTS 25,230.8 21,394.0
Loans and financial debts 20,770.0 17,038.6
Bond issues 13,836.5 9,040.6
Other loans and financing 6,920.0 7,945.0
Bank loans and overdrafts - 39.6
Other financial debts 13.5 13.4
Other debts 4,460.8 4,355.4
Affiliated debts 145.1 140.4
Benefit debts 2,773.3 2,734.7
Tax and social security debts 60.5 70.5
Trade payables 10.8 4.2
State debts - -
Other debts 1,471.1 1,405.6
ACCRUALS 73.9 55.4
TOTAL LIABILITIES 8,254.9 8,052.0
LIABILITIES
CONSOLIDATED

2013 2012
TECHNICAL MANAGEMENT
INCOME 34,107.1 33,212.1
Contributions 33,453.1 32,958.2
Other income 161.8 124.0
Write-back of provisions 198.5 78.4
Transfers of expenses 293.7 51.5
EXPENSES 37,508.6 35,790.2
Unemployment benefits 27,853.6 26,681.7
Other benefits 2,971.1 2,627.4
Redeployment benefits 892.9 972.8
Validation of pension points 1,840.6 1,811.0
Other expenses 3,658.2 3,346.8
Provisions 292.2 350.5
TECHNICAL PROFIT OR LOSS -3,401.5 -2,578.1
ADMINISTRATIVE MANAGEMENT
INCOME 80.4 84.7
Provision of services 46.3 49.5
Other income 34.1 35.2
EXPENSES 104.0 113.3
Purchases 0.8 0.7
External services 51.9 54.0
Taxes and levies 6.0 6.4
Wages and social security contributions 26.9 27.4
Other expenses - 0.1
Amortisation and provisions 18.4 24.7
ADMINISTRATIVE MANAGEMENT PROFIT OR LOSS -23.6 -28.6
FINANCIAL MANAGEMENT
Financial income 27.4 44.2
Financial expenses 254.6 281.3
FINANCIAL PROFIT OR LOSS -227.2 -237.1
EXTRAORDINARY TRANSACTIONS
Technical management - -
Administrative management 8.8 5.4
EXTRAORDINARY PROFIT OR LOSS 8.8 5.4
CORPORATION TAX AND SIMILAR LEVIES -3.2 -4.8
PROFIT OR LOSS -3,646.7 -2,843.2
Consolidated profit and loss account - Unemployment insurance
CONSOLIDATED

9
2013 2012
CONSOLIDATED NET RESULT -3,646.7 -2,843.2
Elimination of transactions with no effect on the cash flow or
not linked to the activity: 93.9 286.0
amortisation and provisions 102.8 293.6
capital gains or losses on disposals -8.9 -7.6
Change in working capital requirement -330.6 124.8
NET CASH FLOW LINKED TO THE ACTIVITY -3,883.5 -2,432.4
Acquisition of tangible and intangible fixed assets -4.0 -8.4
Disposal of tangible and intangible fixed assets 13.8 22.6
Change in financial fixed assets 1.0 0.9
Change in suppliers of fixed assets 1.1 -0.1
NET CASH FLOW LINKED TO INVESTMENT TRANSACTIONS 11.8 15.0
Bond issues 4,750.0 3,000.0
Short-term credit lines - -1.2
Commercial papers -1,025.0 465.0
Other transactions 34.4 104.8
NET CASH FLOW LINKED TO FINANCING TRANSACTIONS 3,759.4 3,568.6
CHANGE IN CASH FLOW (ALL SCHEMES) -112.2 1,151.2
NET CASH FLOW AT THE OPENING OF THE PERIOD 3,008.5 1,857.3
Positive cash flow: available capital 3,048.1 1,858.0
Negative cash flow: bank loans and overdrafts -39.6 -0.7
NET CASH FLOW AT THE CLOSING OF THE PERIOD 2,896.3 3,008.5
Positive cash flow: available capital 2,896.3 3,048.1
Negative cash flow: bank loans and overdrafts - -39.6
Consolidated cash flow statement - Unemployment insurance
CONSOLIDATED

1.1 New regulatory measures decided on in 2013
The convention of 6 May 2011 on unemployment
benefits and the convention of 19 July 2011 on the
Improved job security contract (CSP) will produce
their respective effects until 30 June and 31 Decem-ber
2014.
The National interprofessional agreement (ANI) for
a new economic and social model towards improv-ing
the competitiveness of companies and job and
career path security for employees was signed by
the social partners on 11 January 2013. As provided
for by article 4 of this agreement, the rules defining
the terms of application of the variation in employ-ers’
share of unemployment insurance contributions
were set by the additional clause of 29 May 2013 to
the convention of 6 May 2011. These include:
• The increase in employers’ share of unemployment
insurance contributions payable in respect of cer-tain
fixed-term contracts.
The amount of the contributions recorded in the
accounts came to 29.1 million Euros for 2013;
• The temporary exemption from the employers’
share of unemployment insurance contributions
for hiring employees under 26 on a permanent
contract.
The amount of the exempted contributions came
to 16.6 million Euros for 2013.
These measures came into force on 1 July 2013.
The National interprofessional agreement (ANI) of
11 January 2013 also laid down provisions relating to
the Improved job security contract and partial activity.
Thus, the additional clause no. 2 of 29 May 2013 on
the amendment of article 4 of the agreement of
19 July 2011 on the Improved job security contract
(approved by order of 9 August 2013, Official
Gazette (J.O.) of 7 September) implements the pay-ment
of a 1,000 Euro bonus to beneficiaries of the
experimental Improved job security contract (CSP)
undertaking vocational or certified training, and
whose entitlements to unemployment benefits
(ARE) are exhausted before the training ends.
No payment was recorded for the 2013 financial
year.
Finally, law no. 2013-504 of 14 June 2013 on improved
job security, reflecting article 19 of the National
interprofessional agreement (ANI), created a new
partial activity scheme which replaces the special
short-time working benefits and the long-term
reduced activity benefits (APLD).
This new arrangement came into force on 1 July 2013.
The financial agreement between the State and
Unédic is currently being signed.
KEY EVENTS
OF THE FINANCIAL YEAR
01

11
1.2 Financial relations between Pôle emploi and Unédic
The financial relations between Pôle emploi and Unédic originate in:
• the 2012-2014 tripartite agreement signed between the State, Unédic and Pôle emploi, which sets out the objectives of Pôle emploi’s action and the resources placed at its disposal;
• the cash management agreement entered into between Unédic and Pôle emploi that specifies the amount of the 10% contribution out of the receipt of contributions owed by Unédic and the terms of payment, resulting in a cost of 3,138 million Euros in 2013;
• an agreement on service delegations and operational cooperation. For 2013, the revenues (contributions) were 1,110 million Euros and the expenses (benefits and assistance) were 30,349 million Euros.
Furthermore, Pôle emploi is entrusted with implementing specific arrangements by entering into agreements:
• to finance the support of parties to the Improved job security contract that followed the Personal redeployment agreement (CRP) and Occupation transition contract (CTP) arrangements, with an expenditure of 105.7 million Euros in 2013;
• in respect of measures provided for in the National interprofessional agreement for the support of young people, the 2013 expenditure being 12 million Euros.
With regard to the operating budgets of both bodies, it is worth recalling the invoicing of rents and charges paid by Pôle emploi to occupy real estate sites belonging to Unédic for 21.7 million Euros.
Finally, Pôle emploi undertook exceptional benefit adjustment transactions concerning former employees of public sector self-insurance employers. Thus, in 2013, the sum of 2.4 million Euros was adjusted in Unédic’s accounts for repayment of benefits wrongly financed by the Unemployment insurance scheme. As a result, a larger transaction was carried out at the beginning of 2014 in order to identify other benefit payments to be adjusted. In this case, public sector employers will be asked to repay the Unemployment insurance over a maximum period of 5 years.
At the same time, supported by Unédic, Pôle emploi is reviewing the implementation of measures to avoid repeating this type of error.
1.3 State/Unédic joint arrangements
In respect of the Long-term reduced activity (APLD) arrangement, the amount allocated by Unédic came to 47.3 million Euros in 2013.
The Improved job security contract resulted in 2013 in the payment by the State of 39 million Euros, to finance the Improved job security benefits for beneficiaries providing evidence of 12 to 24 months’ seniority in the company at the time of signing up for the arrangement, for the portion exceeding the unemployment benefit amount. Furthermore, a trial period has been implemented in fifteen employment areas, to enable jobseekers at the end of a fixed-term contract (CDD) to take advantage of support benefits provided for within the framework of the CSP.
Finally, the State contributes to the support costs for all CSP beneficiaries.
KEY EVENTS
01

KEY EVENTS
01
1.4 Increase in unemployment insurance benefits
The Unédic Board of Directors decided, at its meet-ing
on 27 June 2013, to increase by 0.6% as of 1 July
2013:
• the amount of the fixed portion of the Unemploy-ment
benefits (ARE);
• the amount of the minimum allowance (ARE);
• the minimum threshold for unemployment bene-fits
for benefit recipients undertaking a training
programme.
1.5 Financing the unemployment insurance scheme
1.5.1 2013 FINANCING TRANSACTIONS
At the end of the 2013 financial year, the net position
of outstanding loans was 17,675 million Euros, i.e.
• bond issues: 13,650 million Euros,
• commercial papers: 6,920 million Euros,
• investments: -940 million Euros,
• bank balances: -1,955 million Euros.
N.B.: the aggregate net debt including the sums
payable to Pôle emploi for the 10% contribution and
which have not yet been paid (340 million Euros)
therefore amounts to 18,015 million Euros.
1.5.1.1 Bond issues and bank loans
In 2009, Unédic opened a 12 billion Euro EMTN (Euro
Medium Term Notes) programme, within which its
bond issues were launched. This programme’s upper
limit was increased to 20 billion Euros further to the
decision of the Board of Directors of 27 June 2013.
In 2013, Unédic raised a total of 5 billion Euros on the
bond market: 1,500 billion Euros maturing in 2023
(10 years), 1,500 billion Euros in 2020 (7 years),
1,500 billion Euros in 2016 (3 years), to which are
added 0.100 billion Euros maturing in 2017 (4 years),
0.100 billion Euros in 2018 (5 years), and 0.300 bil-lion
Euros in 2019 (6 years).
In 2013, the EMTN programme benefited from the
rating attributed to Unédic by the Fitch (AA+),
Moody’s (Aa1) and S&P (AA) rating agencies. This
last rating was downgraded in November 2013.
The Board of Directors of 27 June 2013 decided to
issue one or more tranches of new bonds for a max-imum
amount of 8 billion Euros.
Given the restrictions imposed by Article 213-15 of
the Financial and Monetary Code governing bond
issues by associations on the financial markets,
Unédic applied for a State guarantee. This guarantee
was authorised by the Amended Finance Law of
29 December 2013 and granted by Order of the Min-istry
of Economy and Finance on 29 January 2014
for a total of 7 billion Euros in principal, plus interest
and costs.
1.5.1.2 Commercial papers
The use of this financing method for the associa-tions
was authorised, under certain conditions, in
Article 37 of law no. 2003-706 of 1 August 2003. The
initial amount of 1,200 million Euros in 2004 was
gradually increased, to reach an upper limit of
12,000 million Euros authorised by the Board
of Directors in June 2012. The total outstanding
amount of the programme as at 31 December 2013
is 6,920 million Euros. These commercial papers are
the subject of drawdowns as needed.
This commercial paper programme obtained the
short-term rating “A1+” by the Standard & Poor’s rat-ing
agency and “P1” by Moody’s as of its launch in
January 2004. Since July 2009, it has also benefited
from the F1+ rating from the Fitch Ratings agency.
Initially, at the request of the rating agencies, syndi-cated
and confirmed lines of credit were put in place
to ensure coverage of this programme and thereby
mitigate any imbalances in the European money
market.
Since July 2012, these lines of credit have been
replaced by a reserve of liquid assets for a minimum
of 2 billion Euros, the level of which varies according
to the use of the commercial papers programme.

13
KEY EVENTS
01
1.5.1.3 Traditional bank financing arrangements
Very short-term financing requirements are covered
in the form of bank overdrafts negotiated by mutual
agreement with Unédic’s banking partners (1.4 bil-lion
Euros negotiated).
None of these overdrafts was used at the end of the
2013 financial year.
1.5.1.4 Investments
Given a commercial paper outstanding liability of
6,920 billion Euros as at 31 December 2013, the
reserve of liquid assets mentioned above is an
amount of 2,896 billion Euros.
1.5.2 FINANCING OF THE 2014-2015 PERIOD
The threefold strategy set out and approved by the
Board of Directors from 2009 remains operational:
• The work carried out with the rating agencies ena-bled
Unédic to continue to benefit from a rating
equivalent to the one assigned to the French State,
enabling it to raise the necessary resources under
the best conditions;
• The EMTN programme, the upper limit of which
was increased to 20 billion Euros, shall enable
Unédic to retain the responsiveness necessary to
its future bond issues. Within the framework of the
completion of its 2014 bond issue programme
(7 billion Euros), Unédic created two new bond
issues: 2.5 billion Euros at 10 years (2024) and
1.5 billion Euros at 7 years (2021). Various amend-ments
to the already existing bond issues brought
the bond issue total to 4.350 billion Euros at the
end of April.
• The commercial papers programme, the upper
limit of which was increased to 12 billion Euros in
2012, continues to enable Unédic to raise the addi-tional
short-term resources it needs under the best
conditions.
The financing instruments thus implemented will
enable Unédic to cover the 2014 deficit forecast to
be 3.7 billion Euros in the financial statement of the
Unemployment insurance scheme published in May
2014.
The financial forecasts for 2014 and 2015 were made
in May 2014 on the basis of the new unemployment
insurance convention of 2014. They rely on the
growth forecasts of the consensus of economists:
+0.8% over 2014 and +1.3% over 2015. Losses of jobs
affiliated to the unemployment insurance scheme
would be -27,400 in 2014. In 2015, there would be
+66,000 more jobs affiliated to the Unemployment
insurance scheme.
Consequently, the result for the Unemployment
insurance scheme would remain negative over 2014
and 2015, with cash consumption in the region of
3.7 billion Euros over 2014 and then 3.6 billion Euros
over 2015. Net indebtedness would then reach
approximately 24.9 billion Euros at the end of 2015,
for which the (support, remuneration and maturity)
financing procedures are yet to be specified given
the situation of the financial markets.

2.1 General principles
The Unemployment insurance scheme’s consoli-dated
annual accounts for the financial year ended
31 December 2013, drawn up in Euros, including the
balance sheet, the profit and loss account and the
appendix, were drawn up in accordance with the
Unemployment insurance organisations’ chart of
accounts approved by the National Accounting
Council (CNC) dated 9 January 1995 (notice of com-pliance
no. 79).
They take into account the specific information
linked to the declaratory nature of Unemployment
insurance and the consequences that arise there-from,
with regard to both the declarations of affili-ates
and the payments to recipients.
The signatory organisations of the Unemployment
insurance convention of 6 May 2011, in view of Article
L.351-3-1 of the French Labour Code on the method
of financing benefits paid under this scheme, certify
that Unemployment insurance is a specific “pay-as-you-
go” scheme.
Unédic’s annual accounts were drawn up on the
basis of financial information produced by the fol-lowing
operators: Acoss, CCMSA, CCVRP, Pôle
Emploi, CCSS (Monaco), CPS (Saint-Pierre et Mique-lon),
and summarised in summary documents con-veying
the transactions completed on behalf of the
Unemployment insurance scheme.
2.2 Unemployment benefits
2.2.1. Expenses
The regulatory provisions stipulate that jobseekers
register then provide Pôle emploi with evidence of
their situation on a monthly basis to avoid their enti-tlements
being called into question. These formali-ties
enable the benefits to be dealt with on a monthly
basis under technical management expenses. In
addition to the December benefits paid in January
of the following year, payment adjustments that
may take place in the following months will be esti-mated
to take into account corresponding expendi-ture
in the corresponding year.
For people exempt from checking, accounting is,
the aforementioned notwithstanding, also carried
out on a monthly basis.
FINANCIAL REPORT – UNEMPLOYMENT INSURANCE in 2013 14
ACCOUNTING PRINCIPLES,
RULES AND METHODS
02

15
2.2.2. Benefit debts
Under the item “Benefit debts” is the amount of benefits considered as owing for the current financial year, according to the principles referred to above, and which are calculated by using the benefits paid in January of the following year and the estimate of the payment adjustments taking place in the following months.
2.2.3. Benefit recipient receivables
The accounts receivable of benefit recipients (overpayments and advances) are the subject of a provision built up according to the age of the debts.
The method for calculating provisions for depreciation of the benefit recipients’ overpayments is based on statistical law making it possible to measure the probability of recovering them.
Overpayments for fraud were the subject of a 100% provision of their amount.
2.3 Contributions of affiliates
2.3.1. Income
The income from technical management corresponds to general and specific contributions that the employers are required to pay for the year, according to mandatory periodic declarations that they make to Urssaf (Social Security Contribution Collection Agencies), CGSS (General Social Security Fund), CMSA (Agricultural Social Mutual Fund) and regional departments of Pôle emploi. The forms received in January are deemed to concern the previous year. For those received in February, the reference on the form for the previous year makes it possible to register amounts declared in unearned income.
When the forms are not received within the prescribed time limits, an estimate of the contributions due is carried out per affiliate.
2.3.2. Affiliate receivables
Contributions yet to be received for the year are calculated according to the income recorded between 1 January and 28 February of the following financial year and relating to the financial year elapsed.
A provision is recorded at the end of the year on affiliates’ debts that appear doubtful. It is calculated according to the age of the debts and forecasts of companies’ ability to pay according to their characteristics.
2.3.3. Creditor affiliates
Funds paid by affiliates and collected by the various operators recovering on behalf of Unédic and which could not be assigned to an identified debt are shown under balance sheet liabilities.
2.4 Other items
2.4.1. Fixed assets
The intangible and tangible fixed assets are recorded in the accounts according to the provisions of ARC (Accounting Regulatory Committee) regulation no. 2002-10 on the amortisation and depreciation of assets and ARC regulation no. 2004-06 on the definition, accounting and evaluation of assets.
Software
5 years
Buildings and structures
10 to 40 years
Fixtures and fittings
10 to 20 years
IT installations and equipment
3 to 6 years
Office furniture
10 years
Office equipment
5 years
Other
4 to 10 years
AMORTISATION IS PRACTISED ACCORDING
TO THE STRAIGHT-LINE METHOD
OVER THE FOLLOWING DURATIONS
RULES AND METHODS
02

RULES AND METHODS
02
2.5 Principles of consolidation
of unemployment insurance scheme accounts
Unédic shall proceed with a “consolidation” of all
Unemployment insurance institutions’ accounts.
Strictly on a legal basis, the “consolidated” whole
corresponds to a “combination” of the accounts
according to regulation no. 99-02 of the National
Accounting Council.
There is no legal relationship between the entities
included in the scope of consolidation.
The scope of consolidation is presented in the chap-ter
of the appendix on additional information.
The main reprocessing operation concerns elimina-tion
of balances from transactions relating to the
managed third party (AGS) shown in Unédic’s
annual accounts, in order to only present the Unem-ployment
insurance transactions in the consolidated
balance sheet.
2.4.2. Corporate commitments
Given the provisions of the National collective
agreement (CCN) for Unemployment insurance
scheme personnel, Unédic is required to pay retire-ment
indemnities calculated as a monthly wage by
number of years of service.
Furthermore, bonuses are to be paid under long-term
service bonuses (médailles du travail).
Commitments are calculated using the following
information:
• new CCN provisions: amendment of 10 February
2011;
• use of personal information: age, sex, salary, length
of service;
• determination of internal actuarial assumptions:
staff turnover rate (0% to 3% according to the
employee’s age), retirement age and terms and
conditions (60 to 65 according to the year of birth
with retirement at the initiative of the employee), a
3% wage increase rate including inflation;
• use of a discount rate for the commitment corre-sponding
to the Bloomberg reference rate, i.e.
3.25% for the 2013 financial year.
Using this data, the amount of the commitments is
calculated individually for each employee present, it
being understood that for the long-term service
bonuses, the commitment must be calculated for
the bonuses which risk being paid for the entire
period of work, i.e. a maximum of 4 bonus levels.
The amounts thus obtained are recorded in the
accounts as provisions for contingencies and
expenses and the change in these provisions is
recorded in the result for the period including the
impacts of assumption changes.
Added to this from 2010 is the amount of com-mitments
due under the defined benefits pension
plan for senior executives of the Unemployment
insurance scheme present as at 1 January 2001, pro-viding
evidence of 8 years in this role and having
ended their career in an Unemployment insurance
institution.
2.4.3. Extraordinary profit or loss
The extraordinary profit or loss includes:
• technical management operations which do not
derive from ordinary activity and relating to bene-fit
recipient or recovery domains;
• items relating to administrative management, that
is to say the items provided for by the general chart
of accounts and, in particular, the capital gains or
losses from disposals of tangible and intangible
fixed assets.
The capital gains or losses from disposals of finan-cial
fixed assets are, the aforementioned notwith-standing,
recorded in the financial transactions.

17
BALANCE SHEET
ANALYSIS
03
3.1 Analysis of balance sheet assets
3.1.1 FIXED ASSETS
3.1.1.1. Tangible and intangible fixed assets
Eleven real estate sites were sold during the financial year.
The transactions recorded with regard to the fixed assets and the amortisation during the 2013 financial
year are presented below:
(1) (2) (3) (4) (5)=(1)+(2)
-(3)+(4)
Gross value at
the opening of
the financial year
Acquisitions
and creations
Sales
or decommis-sionings
Transfers
Gross value at
the closing of
the financial year
Total intangible fixed
assets (A) 0.9 0.4 - - 1.3
Total tangible fixed
assets (B) 451.4 3.7 17.8 - 437.3
Property: land, buildings
and fittings 448.0 3.2 17.6 0.1 433.7
Other tangible fixed
assets 3.3 0.3 0.2 - 3.4
Current tangible fixed
assets 0.1 0.2 - -0.1 0.2
TOTAL (A + B) 452.3 4.1 17.8 - 438.6
CHANGES IN GROSS FIXED ASSETS IN 2013

A provision for depreciation of properties and developments amounting to 3.9 million Euros is recorded as
part of the planned disposal of certain sites for which a proposed purchase in lieu of the sale price estimate
is lower than the net book value.
3.1.1.2. Financial fixed assets
This item, for an amount of 25.3 million Euros, essentially comprises the loans for their original amount within
the framework of the construction subsidy for 25 million Euros and the deposits and securities paid amounting
to 0.3 million Euros.
3.1.2. CURRENT ASSETS
3.1.2.1. Receivables
a) Benefit recipient debtors
The gross value of this item is up by 6.77% compared with the previous financial year: 577 million Euros
compared with 540.4 million Euros. 96% of it is made up of Unemployment insurance overpayments to
benefit recipients, i.e. 554.1 million Euros.
2013 2012 Change
2013/2012
Advances and overpayments on account
at the opening of the financial year (A) 540.4 467.0 15.7%
Detection of overpayments during the financial year (B) 930.2 933.7 (0.4)%
Reimbursement and recoveries of overpayments (C) 820.5 811.0 1.2%
Write-offs and losses on overpayments (D) 73.5 49.4 48.8%
Advances and payments of account (E) 9.5 10.0 (5.0%)
Recovered advances and payments on account (F) 9.1 9.9 (8.1)%
Benefit recipient debtors at the end of the financial year
(including the advances and payments on account)
(G) = (A) + (B) - (C) - (D) + (E) - (F) 577 540.4 6.77%
Provision set aside for disputed debts (H) (299.2) (279.2) 7.2%
Provisioning rate (H)/(G) 51.9% 51.7% 0.2 pt
Net book value (I) = (G) - (H) 277.8 261.2 6.4%
BALANCE SHEET
ANALYSIS
03
(1) (2) (3) (4) (5)=(1)+(2)
-(3)+(4)
Amortisation at
the opening of
the financial year
Appropriation
Increases
Reductions
in sales and
decommis-sionings
Transfers
Gross value at
the closing of
the financial year
Total intangible fixed
assets (A) 0.4 0.2 - - 0.6
Total tangible fixed
assets (B) 307.9 14.8 21.0 - 301.7
Property: land, buildings
and fittings 305.5 14.5 20.8 - 299.2
Other tangible fixed
assets 2.4 0.3 0.2 - 2.5
TOTAL (A + B) 308.3 15.0 21.0 - 302.3
CHANGES IN AMORTISATION IN 2013
The risk of not recovering overpayments is covered by the setting aside of a provision equal to 51.9% of the
debt compared with a rate of 51.7% for the 2012 financial year.
TRANSACTIONS RELATING TO UNEMPLOYMENT INSURANCE OVERPAYMENTS

19
BALANCE SHEET
ANALYSIS
03
The uncontested debts to be received correspond to contributions due for 2013, which were settled at the
beginning of the following financial year.
The burden of disputed debts has increased by 7.4%, with this change resulting not only from the worsening
economic situation, but also from the effects of the transfer of recovery to Acoss, which has seen its burden of
disputed debts increase by 277 million Euros. For its part, the disputed debts managed by Pôle emploi have
reduced by 155 million Euros.
A provision is set aside in order to cover the risk of not recovering disputed debts, which represents 79.5% of
the contested contributions to be received or a 5.8% increase compared with the 2012 financial year. The pro-vision
is calculated by each of the operators responsible for recovering Unemployment insurance contribu-tions,
according to the review of the results of recovering disputed debts over previous years.
3.1.2.2. State
This item, for an amount of 89.5 million Euros, represents an amount due by the State for arrangements prior
to 2009 managed on behalf of the State and not transferred to Pôle emploi.
3.1.2.3. Other debts
This item, for an amount of 395.3 million Euros, predominantly comprises:
• the EJEN/ASP participatory programmes to be received for 1.2 million Euros;
• accrued income from the State as part of the CA (Contract for the future) – CAE (Employment Support
Contract) arrangement balance for 16.2 million Euros;
• accrued income under repayment by Member States to France of allowances paid to French cross-border
workers of 181 million Euros;
• accrued income from Pôle emploi concerning an adjustment of supplementary pensions from 2010 to 2013
of 6 million Euros;
• a claim against establishments under management agreements amounting to 22.7 million Euros;
• a claim against sales of fixed assets for 1.3 million Euros;
• a 7.6 million Euro claim against Monaco relating to current transactions of the contribution recovery
domain;
• an 84.4 million Euro claim against Acoss, corresponding to the balance of contributions paid by the
employers during December, to be repaid to Unédic;
2013 2012 Change
2013/2012
Uncontested debts to be received (A) 4,039.8 4,011.2 0.7%
Disputed debts to be received (B) 1,774.3 1,651.3 7.4%
Gross value (C) = (A) + (B) 5,814.1 5,662.5 2.7%
Provision set aside for disputed debts (D) (1,411.2) (1,333.3) 5.8%
Provisioning rate (D)/(B) 79.5% 80.7% -1.2 pt
Net book value (E) = (C) – (D) 4,402.9 4,329.2 1.7%
b) Affiliates
The burden of gross contributions yet to be recovered, i.e. 5,814.1 million Euros, is up by 2.7% compared with
the previous financial year. It is broken down into:
• main contributions: 5,138.5 million Euros or 88.4% of the total;
• individual contributions: 513.2 million Euros or 8.8% of the total;
• additional contributions: 162.4 million Euros or 2.8% of the total.

• a claim against Saint-Pierre et Miquelon for 0.8 million Euros, relating to working balances of the contribution
recovery domain;
• a claim against CCMSA for 4.7 million Euros, relating to working balances of the contribution recovery domain;
• a claim against the State concerning the exemption of ship-owners for 0.7 million Euros relating to working
balances of the contribution recovery domain;
• a claim against the State concerning the exemption of apprentices for 23.9 million Euros relating to working
balances of the contribution recovery domain;
• a claim against AGS for 44.3 million Euros in respect of management costs re-invoiced to AGS.
3.1.2.4. Marketable securities
This item, for an amount of 940 million Euros, corresponds to money market funds dedicated to the cover-age
of commercial paper issues in the event of market failure.
BALANCE SHEET
ANALYSIS
03
Marketable security inventory
as at 01/01/2013 Acquisitions in 2013 Sales in 2013 Marketable security inventory
as at 31/12/2013
1,515 29,711 30,286 940
3.1.2.5. Bank balances
This item, for an amount of 1,956 million Euros, mainly corresponds to paid passbook deposits.
3.1.3. DEFERRED EXPENSES
This item, for an amount of 11.2 million Euros, concerns the costs of bond issues that are distributed linearly
over the term of the bonds.
(en millions d’euros)
3.1.4. REDEMPTION PREMIUMS
The bonds issued by Unédic include a bond premium, corresponding to the difference between the nominal
value of the bonds and the issue value. These premiums are amortised over the term of the bonds.
Date
Deferred fees
and costs
Prior
amortisation
2013
amortisation
Aggregate
amortisation as
at 31/12/2013
Bond fee
amortisation
balance
31/12/2013
2011 1.9 1.1 0.6 1.7 0.2
2012 8.0 1.3 1.9 3.2 4.8
2013 7.0 - 0.8 0.8 6.2
TOTAL DEFERRED
EXPENSES 16.9 2.4 3.3 5.7 11.2
Issue
date
Issue premium
amount
Prior
amortisation
2013
amortisation
Aggregate
amortisation as
at 31/12/2013
Issue premium
balance
31/12/2013
2011 4.2 2.5 1.4 3.9 0.3
2012 11.9 1.6 2.3 3.9 8.0
2013 11.6 - 1.5 1.5 10.1
TOTAL ISSUE
PREMIUM 27.7 4.1 5.2 9.3 18.4
SUMMARY OF DEFERRED EXPENSES FURTHER TO BOND ISSUES

21
BALANCE SHEET
ANALYSIS
03
3.2 Analysis of balance sheet liabilities
3.2.1. Net financial position
The net financial position, at the end of the 2013 financial year, is negative by 17,099.9 million Euros and is
changing as follows:
• net financial position as at 31 December 2012: -13,453.2 million Euros
• negative result for the 2013 financial year: -3,646.7 million Euros
• net financial position as at 31 December 2013: -17,099.9 million Euros
3.2.2. Provisions for contingencies and expenses
This item, for a total amount of 50.1 million Euros, predominantly comprises the following provisions:
• Unédic’s contribution to the financing of AS-FNE (special benefits from the national employment fund)
for 3.2 million Euros;
• the Unemployment insurance contributions paid in error by certain public sector employers and to be
repaid for 22 million Euros;
• the provision for risks of disputes over benefit recipient and recovery domains flagged up by the regional
departments of Pôle emploi for 6.5 million Euros;
• provisions for corporate commitments;
• provision for retirement indemnities (IDR) for the sum of 12.8 million Euros;
• provision for long-term service bonuses for 1.6 million Euros.
Opening
balance Provision
Write-back
provision
used
Write-back
provision
not used
2013/2012
Change
ARPE 0.1 - 0.1 - -
AS-FNE 8.3 3.2 8.3 - 3.2
IDR 15.0 0.1 2.4 - 12.7
Long-term service bonuses 1.6 - - - 1.6
Public sector employer
reimbursement 21.1 0.9 - - 22.0
Other 9.7 0.9 - - 10.6
TOTAL 55.8 5 10.8 - 50.1
Financing
arrangements
Opening
balance
Of which
accrued
interest
Additional
financing
Repayment
of financing
Closing
balance
Of which
accrued
interest
Bond issues 9,040 140 5,000 250 13,837 187
Credit/financing
establishments loans
7,945 - 24,458 25,483 6,920 -
Of which commercial
papers 7,945 - 24,458 25,483 6,920 -
Of which other loans - - - - - -
Bank loans and
overdrafts
40 - - 40 - -
TOTAL 17,025 140 29,458 25,773 20,757 187
3.2.3. Loans and financial debts
CHANGE IN PROVISIONS FOR CONTINGENCIES AND EXPENSES DURING THE 2013 FINANCIAL YEAR
CHANGE IN FINANCING DURING 2013

22
BALANCE SHEET ANALYSIS
03
ISSUE
Amount in €
Issue date
Maturity
Coupon rate
2.1
1,500,000,000
31/03/2011
31/03/2014
2.375%
2.2
150,000,000
23/12/2011
2.3
350,000,000
29/02/2012
2.4
150,000,000
25/04/2012
4.1
2,500,000,000
27/02/2012
27/02/2015
1.750%
4.2
200,000,000
10/04/2012
5.1
1,000,000,000
29/02/2012
25/04/2019
3.000%
5.2
300,000,000
25/04/2012
5.3
300,000,000
17/09/2013
6.1
1,000,000,000
26/04/2012
26/04/2017
2.125%
6.2
300,000,000
10/12/2012
6.3
100,000,000
16/09/2013
7.1
1,000,000,000
01/06/2012
01/06/2018
2.125%
7.2
100,000,000
16/10/2012
7.3
100,000,000
26/10/2012
7.4
100,000,000
21/08/2013
8
1,500,000,000
05/04/2013
05/04/2023
2.250%
9
1,500,000,000
30/04/2013
29/04/2016
0.375%
10
1,500,000,000
29/05/2013
29/05/2020
1.250%
3.2.3.1. Bond issues
The bonded debt amounts to 13,650 million Euros at the end of the 2013 financial year.
BONDED DEBT
Added to this is an amount of 186.5 million Euros corresponding to accrued coupons at the end of the financial year.
3.2.3.2. Loans from various credit and finance institutions
The total amount of this item comes to 6,920 million Euros, corresponding to the commercial papers issued by Unédic.
3.2.4. OTHER DEBTS
3.2.4.1. Affiliated debts
This item, amounting to 145.1 million Euros, corresponds to the sums received from employers and which could not be assigned to debts at the end of the financial year.
Inventory as at 01/01/2013
Issues in 2013
Repayments in 2013
Inventory as at 31/12/2013
7,945
24,458
25,483
6,920
During the 1st quarter 2014
During the 2nd quarter 2014
During the 2nd half of 2014
TOTAL
4,995
1,030
895
6,920
THE TRANSACTIONS CONCERNING THE COMMERCIAL PAPERS WERE AS FOLLOWS IN 2013:
THE DUE DATES OF THESE COMMERCIAL PAPERS
ARE AS FOLLOWS:

23
BALANCE SHEET ANALYSIS
03
3.2.4.2. Benefit recipient debts and other accounts payable
This item, for a total amount of 2,773.3 million Euros, corresponds, essentially, to the benefits to be paid:
• from the month of December 2013 paid in January 2014, i.e. 2,743.8 million Euros and 47 million Euros for the redeployment benefits to be paid to benefit recipients;
• for 2013 paid in February and March 2014 for an amount of 89.8 million Euros;
• less the advance retirement levy for an amount of 113.9 million Euros.
3.2.4.3. Tax and social security debts
This item, for a total of 60.5 million Euros, comprises:
• provision for paid leave and holidays and 13th month bonuses amounting to 2.8 million Euros;
• the benefit recipient advance levies yet to be paid, i.e. 47.7 million Euros corresponding to the benefits paid in December 2013;
• other tax and social security debts for 10 million Euros.
3.2.4.4. Suppliers debts
The amount of 10.8 million Euros, representing the invoices yet to be paid as at 31 December 2013, is divided into two sections:
• suppliers of goods and services: 9.5 million Euros;
• suppliers of fixed assets: 1.3 million Euros.
3.2.4.5. Other debts
The main items of this section, the total amount of which comes to 1,471.2 million Euros, concern:
• the cost to be paid as at 31 December 2013 to various pension funds, for the validation of the benefit recipients’ additional pension points:
• 619.2 million Euros due to ARRCO (Association of supplementary pension plans for salaried employees) which is broken down into:
• 569 million Euros corresponding to the contributions yet to be paid for 2013;
• -34.2 million Euros for the semi-final 2013 position;
• 19.8 million Euros due by ARRCO for the 2012 adjustment;
• 64.6 million Euros for the AFSP (Benefits from the specific temporary fund) arrangement.
• 481.9 million Euros due to AGIRC (General Association of Pension Institutions for Managerial Staff) which is primarily broken down into:
• 301.2 million Euros corresponding to Unédic’s commitment to AGIRC, as provided for in the agreement of 19 December 1996 which had valued the amount of supplementary retirement contributions for the periods of unemployment prior to this date and set a 20-year payment schedule at the rate of 1/20th each year, with the debt amount being re-assessed each year by applying the price index;
• 276.4 million Euros corresponding to the contributions yet to be paid for 2013;
• -61.1 million Euros for the semi-final 2013 position;
• -39.8 million Euros due by AGIRC for the 2012 adjustment;
• 5.2 million Euros for the AFSP arrangement;
• 47.1 million Euros due to other supplementary retirement pension organisations, including IRCANTEC (Supplementary Retirement Pensions Institution for Non-Certified State Employees and Employees of Public Administrations).
• the liaison accounts with Pôle emploi for a total of 303.4 million Euros including that relating to the financing of Pôle emploi through the 10% contribution for the sum of 339.9 million Euros.
3.2.5. ACCRUALS
Unearned income, i.e. 73.9 million Euros, concerns:
• the payments made by public companies and establishments which are not affiliated to the Unemployment insurance scheme, but which have signed a management agreement with Unédic. The payments are made for benefit recipients
registered as unemployed and whose acquired rights may be spread over several financial years according to their age. This represents an amount of 22.2 million Euros;
• the bond premiums on bond issues representing 51.7 million Euros. These premiums are amortised over the term of the issue.
DATE
Issue amount
Bond premium amount
Prior
amortisation
2013
amortisation
Aggregate amortisation as at 31/12/2013
Prepaid income balance 31/12/2013
2011
150
1.7
0.8
0.8
1.6
0.1
2012
1,500
42.5
5.7
12.2
17.9
24.6
2013
500
28.7
-
1.7
1.7
27.0
TOTAL
2,150
72.9
6.5
14.7
21.2
51.7

4.1 Technical management
4.1.1. INCOME
4.1.1.1. Contributions
The income from contributions for the 2013 financial year is up by 1.5% compared with 2012.
After correcting new items (increases in fixed-term
contracts, exemption of permanent contracts for
under 26’s, initial recording of accrued income for
ACOSS, TTS and TESE contributions) and transfers
of contributions in respect of financial years prior to
2013, the increase in income from main contributions
excluding the apprenticeship arrangement came to
+1.13% in 2013.
This is primarily explained by the 1.2% increase in the
wage bill and additional items under previous
financial years. The change in the wage bill should
be compared to the increase in the average salary
per capita (SMPT) of 1.8% and the decrease in staff
numbers (-0.6%).
Special contributions saw a 22.2% increase in relation
to the increase in the number of members of the CRP
(Personal redeployment agreement) arrangement.
4.1.1.2. Other income
This item, for an amount of 161.8 million Euros,
predominantly comprises the income in respect of
management agreements, i.e. 56.7 million Euros, in
addition to the surcharges for delay and penalties
for 93.2 million Euros.
4.1.1.3. Net write-back of provisions
The total amount of decreases or write-backs of
provisions is 198.5 million Euros, and is related to:
• Unédic’s contribution to the current financing of
AS-FNE amounting to 8.3 million Euros;
• the depreciation of debts relating to management
agreements for 0.7 million Euros;
• doubtful debts of affiliates for 152.5 million Euros;
• the depreciation of detected overpayments for
37 million Euros.
2013 2012 2013/2012
Main contributions 32,689.7 32,333.4 1.1%
Special contributions 763.4 624.8 22.2%
TOTAL 33,453.1 32,958.2 1.5%
PROFIT AND LOSS
ACCOUNT ANALYSIS
04
INCOME FROM CONTRIBUTIONS FOR THE 2013 FINANCIAL YEAR

25
The expenses per benefit result from the payment of:
• payments to benefit recipients made during the financial year;
• the reduction in expenses associated with the detection of overpayments;
• the provision reversal recorded in 2013 for benefits to be paid for the previous financial year;
• the supplementary expenses represented by the provision recorded for the benefits paid at the start of
2014 for periods from 2013 or previous years.
2013 2012 2013/2012
Unemployment benefits (ARE) 27,853.6 26,681.7 4.39%
Other benefits 2,971.1 2,627.4 13.08%
Training unemployment benefits (ARE) 1,055.3 1,057.3 -0.19%
Specific redeployment benefits (ASR)/
Benefits from the specific temporary fund
(ASP) 1,903.8 1,554.8 22.45%
Other 12.0 15.3 -21.57%
TOTAL 30,824.7 29,309.1 5.17%
Benefits
paid in 2013
(+)
Overpayments
detected 2013
(-)
2013 benefits
paid in 2014
(+)
Write-back of 2012
benefits paid
in 2013
(-)
Financial year
expenses
(=)
ARE 28,652.8 879.4 2,527.8 2,502.3 27,798.9
CSP/CTP/EJEN ARE 54.9 0.3 0.1 - 54.7
Total ARE 28,707.7 879.7 2,527.9 2,502.3 27,853.6
Training ARE 1,075.2 19.4 130.8 131.3 1,055.3
ASR/ASP 1,909.3 24.8 178.1 158.8 1,903.8
Various others 14.2 1.8 0.6 1.0 12.0
Other benefits 2,988.7 46.0 309.5 291.1 2,971.1
TOTAL 31,706.4 925.7 2,837.4 2,793.4 30,824.7
PROFIT AND LOSS
ACCOUNT ANALYSIS
04
4.1.1.4. Transfer of expenses
This item, for the sum of 293.7 million Euros, pre-dominantly
comprises:
• the reimbursements of benefits by the affiliates
amounting to 20.6 million Euros;
• the full reimbursement of benefits paid to the
EJEN (National Youth Employment Programme)
for the sum of 0.5 million Euros;
• the reimbursement of benefits between EU coun-tries
for 234 million Euros;
• the partial payment of improved job security con-tract
(CSP) benefits by the State for 38.6 million
Euros.
4.1.2. EXPENSES
The technical management expenses total increased by 4.80% in 2013 as a result of a continuous decline in
the economic situation over the financial year.
The benefit expenses and the cost of validating benefit recipients’ pension points were the most affected by
this decline. On the other hand, the amount of assistance payments reduced by 8.2% with a significant drop
in payments pursuant to Assistance for the takeover or start-up of a company (ARCE).
4.1.2.1. Benefits
The overall cost of benefits increased by 5.17% in 2013, with the following breakdown:
Improved job security benefits have taken over from the Specific redeployment benefits and the Occupa-tion
transition benefits for those signed up to this support arrangement as of 1 September 2011.

2013 2012 2013/2012
ADR – Compensatory allowance upon redeployment 54.7 50.5 8.32%
ARCE – Assistance for the takeover or start-up
of a company 735.6 841.5 -12.58%
IDR – ASP and CRP differential redeployment
indemnity 29.2 20.5 42.44%
Other benefits 74.4 60.3 21.72%
TOTAL REDEPLOYMENT BENEFITS 892.9 972.8 -8.21%
PROFIT AND LOSS
ACCOUNT ANALYSIS
04
Assistance for the takeover or start-up of a company
(ARCE) represents the main benefits amounting to
735.6 million Euros or 82.4% of all benefits. Its
amount decreased by 12.58% in 2013.
4.1.2.3. Validation of pension points
This item corresponds to the cost of the validation
of benefit recipients’ supplementary pension points
for the sum of 1,840.6 million Euros in 2013, com-pared
with 1.811 million Euros in 2012. This increase is
explained by the increase in benefit recipient
expenditure and expenditure adjustments recorded
in 2013.
The breakdown by pension scheme is as follows:
4.1.2.4. Other technical management expenses
This item, for an amount of 3,658.2 million Euros, is
up by 9.31% compared with 2012.
The main expenses comprise:
• the debt write-offs and cancellations of affiliate
debts for 275.9 million Euros;
• the debt write-offs and cancellations of benefit
recipient debts for 73.8 million Euros;
• the payment by Unédic of its contribution to the
FNE (National Employment Fund) agreements for
5.1 million Euros;
• the 10% contribution due by Unédic to Pôle emploi
for 3,137.8 million Euros;
• Unédic’s contribution to the Improved job security
contract (CSP) costs for 105.7 million Euros;
• Unédic’s contribution to the financing of the long-term
reduced activity (APLD) arrangement for the
sum of 47.3 million Euros.
ARRCO 2,359.6
AGIRC 644.9
Other funds (IRCANTEC – CRPNPAC) 112.4
TOTAL PENSION FUNDS 3,116.9
Contribution of benefit recipients -1,276.3
VALIDATION OF PENSION POINTS 1,840.6
The main changes in terms of payment of benefits are as follows:
• ARE payments represented an amount of
28.653 billion Euros in 2013 compared with
27.320 billion Euros in 2012, i.e. a 4.88% increase
which is explained by a 1.70% increase in the aver-age
amount of the daily benefits, and a 3.13%
increase in the number of compensated days;
• Training ARE payments (excluding social contribu-tions
of 75 million Euros) represented an amount
of 1 billion Euros in 2013 compared with 1.005 bil-lion
Euros in 2012, i.e. a 0.44% decrease which is
explained by a 2.87% decrease in the average
amount of the daily benefits, and a 2.50% increase
in the number of compensated days;
• ASR and ASP payments represented the sum
of 1.923 billion Euros in 2013 compared with
1.532 billion Euros in 2012, i.e. a 25.56% increase
which is explained by a 0.74% increase in the aver-age
amount of the daily benefits, and a 24.63%
increase in the number of compensated days.
4.1.2.2. Redeployment benefits
Redeployment benefits amounted to 892.9 million Euros in 2013, compared with 972.8 million Euros in 2012,
and are broken down in the following way:
REDEPLOYMENT BENEFITS

27
4.1.2.5. Provisions
The provisions total 292.2 million Euros and are bro-ken
down as follows:
• depreciation of claims against affiliates for
230.4 million Euros;
• depreciation of overpayments to benefit recipi-ents
for 56.9 million Euros;
• depreciation for contingencies and expenses
amounting to 4.9 million Euros which primarily
concerns the provision for financing the ASFNE for
3.2 million Euros, the provision for Acoss disputes
of 2.4 million Euros, the provision for Pôle emploi
contingencies and expenses of -1.7 million Euros
and the provision for risk of potential repayment of
contributions of 0.9 million Euros.
4.2.1.2. Other income
This item, for a total amount of 19.5 million Euros,
mainly represents the rent paid by Pôle emploi within
the context of the supply of the Unemployment insur-ance
scheme’s real estate assets.
4.2.2. EXPENSES
The expenses came to 104 million Euros in 2013 and
decreased by 8.21% compared with 2012. The
amortisation of the real estate inventory (268 sites as
at 31 December 2013), its maintenance and its
management constitute a significant administrative
management expense.
4.2.2.1. Purchases
This item represents 0.8% of the administrative
management expenses, or 0.8 million Euros, com-pared
with 0.7 million Euros in 2012.
4.2.2.2. External services
This item represents 49.8% of administrative man-agement
expenses.
4.2 Administrative management
4.2.1. INCOME
4.2.1.1. Provision of services
This item, amounting to 46.2 million Euros, is essentially made up of income received from third parties
within the framework of management agreements:
2013 2012
AGS 43.6 45.3
Pôle emploi 2.5 4.1
Other agreements with third parties - -
Other provisions of services 0.1 0.1
TOTAL 46.2 49.5
2013 2012
Works and services provided by third parties 8.7 9.3
Other external services
(including expenses to finance union and employer organisations: 4.0 million Euros in 2013) 11.9 8.8
Rents 2.3 2.2
Transportation and travel 1.2 1.3
Postal and telecommunications costs 0.4 0.5
Notarial fees and costs 20.3 19.5
Bank and postal costs 7.2 12.4
TOTAL 51.8 54.0
PROFIT AND LOSS
ACCOUNT ANALYSIS
04

The “Other external services” item includes, inter
alia, expenses relating to the financing of employer
and union organisations, within the context of
managing the Unemployment insurance scheme, i.e.
4.0 million Euros in 2013.
4.2.2.3. Taxes and levies
This item represents 5.8% of the administrative man-agement
costs and is broken down as follows:
4.2.2.4. Wages and social security costs
This item represents 25.9% of the administrative
management costs. It is broken down into:
4.2.2.5. Amortisation and provisions
This item represents 17.7% of the administrative man-agement
expenses, or 18.4 million Euros, compared
with 24.7 million Euros in 2012, with the reduction
being attributable to the sale of real estate sites.
4.3 Financial management
The financial result is negative:
• -237 million Euros in 2012;
• -227 million Euros in 2013.
The 2013 expenses came to 254.6 million Euros and correspond mainly to:
• structured financing expenses for 249.5 million Euros, or:
• 239.8 million Euros for the bond issues and the bridging facility;
• 9.7 million Euros in interest on the commercial papers programme;
• amortisation of bond issue redemption premiums for 5.2 million Euros.
The average financing rate for 2013 came to 1.23%.
4.4 Extraordinary profit or loss
The income from extraordinary transactions is profitable (+8.8 million Euros) and is made up of the following
transactions:
• capital gains of 8.9 million Euros for sales of fixed assets;
• expenses relating to the scrapping of fixed assets and miscellaneous expenses amounting to 0.1 million
Euros.
4.5 Corporation tax
Unédic is liable for corporation tax for the profit or loss on property revenue and income from movable
property. The tax due, at the rate of 24%, came to 3.2 million Euros for 2013.
4.6 Financial year profit or loss
This item represents the net profit or loss for the 2013 financial year for the Unemployment insurance
scheme.
The result is negative by 3,646.7 million Euros.
2013 2012
Taxes on earnings 2.0 2.0
Other taxes and levies 4.0 4.4
TOTAL 6.0 6.4
2013 2012
Wages 18.0 18.5
Social security costs 8.9 8.9
TOTAL 26.9 27.4
PROFIT AND LOSS
ACCOUNT ANALYSIS
04

29
ADDITIONAL
INFORMATION
05
5.1 Estimate of the benefits to be paid to benefit recipients receiving
benefits at the end of the financial year using underlying assumptions
The method of management by distribution implies
that certain technical provisions which might be set
aside within the framework of an insurance or
welfare activity are not set aside within the specific
framework of the Unemployment insurance scheme.
However, they constitute potential forecast
expenditure calculated at the end of the financial
year, which only the break-even point of the
Unemployment insurance scheme or a change in
regulation might call into question in the future.
With a view to ensuring third parties are better
informed, we present to you below the estimates
that we consider the most important, in addition to
their means of calculation.
More extensive information on the expenditure and
income forecasts can be found in the management
report in the “2014 Outlook” section, in accordance
with works regularly conducted by the
Unemployment insurance scheme on the benefits/
contributions equilibrium and the coverage of its
financing needs.
5.1.1. ESTIMATE OF THE BENEFITS YET TO BE PAID
BY THE UNEMPLOYMENT INSURANCE SCHEME TO
THE BENEFIT RECIPIENTS COMPENSATED AT THE
END OF THE FINANCIAL YEAR
The amount of benefits to be paid over the average
duration of unemployment yet to run as of
31 December 2013, to benefit recipients registered
on this date, was assessed by Unédic’s Studies and
Analyses Department at 22,763 million Euros. This
amount does not take into account the benefits to
be paid to recipients of an extension of an allowance
until their retirement. The means and procedures
used to calculate this estimate are as follows:
• calculation of benefits paid in 2013 to current
benefit recipients as at 31 December 2012
(2,455,673 benefit recipients), i.e. 16,185 million
Euros;
• calculation of benefits yet to be paid to this
population after 31 December 2013, i.e. 6,432 million
Euros. This population represents 26.70% of current
benefit recipients as at 31 December 2012;

5.2 Individual right to training
The vocational training agreement, signed on 6 October 2005, implements, by adapting them to the context
of Unemployment insurance, the provisions of law no. 2004-391 of 4 May 2004 and the National
interprofessional agreement of 5 December 2003.
The provisions of the agreement stipulate that from 1 January 2004, employees of the Unemployment
insurance scheme acquire individual rights to training, capped at 21 hours per annum and per employee.
This right, cumulated over 6 years, therefore amounts to a maximum of 126 hours per employee as at
31 December 2013.
When the accounts are drawn up, the acquired rights are calculated by using the personal data of the
Unemployment insurance employees. As at 31 December 2013, the accumulation of acquired rights came
to almost 34,113 hours.
5.3 Number of Unemployment Insurance staff
The number of Unédic staff as at 31 December 2013 is 343 Unédic employees, 236 of whom are assigned to
the Unédic/AGS Delegation.
5.4 Scope of consolidation
The scope of consolidation includes:
• Unédic;
• one unmerged Assédic agency, French Guiana.
• for this 2012 population, the total amount of bene-fits
yet to be paid by the Unemployment insurance
scheme is 22,617 million Euros;
• this amount is updated, taking into account
a 0.64% increase in benefit recipients as at
31 December 2013 compared with 31 December
2012; the estimate of the benefits yet to be paid to
the benefit recipients compensated at the end of
the 2013 financial year is 22,763 million Euros.
5.1.2. ESTIMATE OF THE BENEFITS YET TO BE PAID
BY THE UNEMPLOYMENT INSURANCE SCHEME TO
BENEFIT RECIPIENTS RECEIVING AN EXTENSION
OF AN ALLOWANCE
These benefits concern the jobseeker benefit
recipients who may, under certain conditions, collect
their indemnities up to retirement age.
The amount of benefits yet to be paid to these
benefit recipients registered at the end of the
financial year was assessed by Unédic’s Studies and
Analyses Department at 0.487 billion Euros. The
calculation is made by prolonging the indemnification
rate used as at 31 December 2013 until the day
before the retirement date, with the maximum age
being 65.
ADDITIONAL
INFORMATION
04

Financial year ended 31 December 2013
AUDITORS’
REPORT ON THE
CONSOLIDATED ACCOUNTS

In fulfilment of the assignment entrusted to us by
your Board of Directors, we hereby report to you, for
the financial year ended 31 December 2013, on:
• the audit of the so-called combined consolidated
accounts of the Unemployment insurance scheme
managed by Unédic, as they are enclosed with this
report;
• the justification of our assessments;
• the specific verification required by law.
The consolidated accounts have been approved by
the Managing Director of Unédic. Our role is to
express an opinion on these accounts based on our
audit.
We conducted our audit in accordance with
professional standards applicable in France. Those
standards require that we plan and perform the
audit to obtain reasonable assurance about whether
the consolidated accounts are free of material
misstatement.
An audit includes examining, on a test basis or by
means of other methods of selection, evidence
supporting the amounts and information in the
consolidated accounts. An audit also includes
assessing the accounting principles used and
significant estimates made, as well as evaluating the
overall presentation of the accounts.
We believe that the information that we have
collected is sufficient and relevant on which to base
our opinion.
We certify that in accordance with French
accounting rules and principles, the consolidated
accounts of the financial year give a true and fair
view of the assets, the financial position and the
income of the whole made up of the Unemployment
insurance institutions and the other entities included
in the combination of accounts (“the consolidation”).
Although not wishing to undermine the opinion
expressed above, we draw your attention to the
point referred to in the appendix relating to
measures taken in order to finance the
Unemployment insurance scheme given the
economic context and its impact on the technical
equilibrium forecasts (see note 1.5.2 “Financing of
the 2014-2015 period”).
Pursuant to the provisions of Article L. 823-9 of
the French Commercial Code relating to the
justification of our assessments, we hereby inform
you that the assessments we have carried out
concern the appropriate nature of the accounting
principles applied and, where necessary, the
reasonable nature of the significant estimates
used and the overall presentation of the accounts,
by way of:
• The note in the appendix referring to the account-ing
principles, rules and methods specifies that the
Unemployment insurance scheme is a specific
scheme by distribution and that the accounts were
drawn up in accordance with the chart of accounts
of the unemployment insurance organisations
approved by the National Accounting Council. In
order to draw up the consolidated accounts, the
specific nature of Unemployment insurance is
thereby taken into account and the consequences
arising therefrom, both in respect of the declara-tions
of affiliates and the payments to benefit
recipients.
• Furthermore, the financial year’s accounts were
drawn up with a view to continued Unemployment
insurance activities, given the structuring hypoth-esis
referred to in note 1.5.2 of the “Financing of the
2014-2015 period” appendix which sets out
Unédic’s ability to have access to the necessary
financing.
As part of our assessment of the accounting rules
and principles used, we verified the appropriate
nature of the accounting methods specified above
and the information provided in the notes of the
appendix.
To the members of the Board of Directors,
I. Opinion on the consolidated accounts
II. Justification of the assessments

33
• Note 2.1 of the appendix specifies that the Unem-ployment
insurance scheme’s accounts were
drawn up on the basis of financial information pro-duced
by third parties, primarily by Pôle emploi
and Acoss, with regard to the transactions carried
out by these entities on behalf of the Unemploy-ment
insurance scheme.
• We have familiarised ourselves with the “Audi-tors’
Report on the accounting statements of
Pôle emploi linked to the management on behalf
of Unédic of individual contributions from certain
affiliates and payments to benefit recipients”,
drawn up on 5 May 2014, and which gives a
favourable opinion.
• We have familiarised ourselves with the “Court’s
positions on the 2013 accounts of Acoss’ recov-ery
activity” adopted by the 6th Chamber of the
French Accounting Court on 23 June 2014 and
which gives reasonable assurance as to the cash
flows specifically concerning the Unemployment
insurance scheme both in terms of income and
collections.
• We ensured the correct transcription of these
accounting statements in the Unemployment
insurance scheme’s accounts.
• We were aware of the work carried out by the
Pôle emploi Auditors and by the French Audit
Court and we supplemented it with specific
requests concerning both the internal audit and
the audit of the accounts. Our work consisted in
examining the relevance and sufficient nature of
the information obtained.
The assessments were made in the context of our
audit of the consolidated accounts, taken as a
whole, and therefore contributed to the formation
of our opinion expressed in the first part of this
report.
We have also performed, in accordance with
professional standards applicable in France, the
specific verification required by law on the
information relating to the Unemployment insurance
scheme given in the management report.
We have no matters to report regarding their fair
presentation and conformity with the consolidated
accounts.
III. Specific verification
Deloitte & Associés FCN
Paris & Neuilly-sur-Seine, 23 June 2014
THE AUDITORS
Anne BLANCHE Vincent BLESTEL Serge FLOCH Stéphane LOUBIÈRES

NOTES

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