SG Issuer Société Anonyme Financial statements, Report of the Executive Board and Corporate Governance Statement and Audit Report of the Réviseur d’Entreprises Agréé As at and for the year ended 31 December 2024 10, Porte de France L-4360 Esch-sur-Alzette R.C.S. Luxembourg : B121.363 SG Issuer [EXECUTIVE BOARD MEMBERS ....................................................................................................................... 1](#a744) [SUPERVISORY BOARD MEMBERS ................................................................................................................... 2](#a939) [AUDIT COMMITTEE MEMBERS....................................................................................................................... 3](#a1026) [MANAGEMENT AND ADMINISTRATION ......................................................................................................... 4](#a1083) [LEGAL ADVISERS AND RÉVISEUR D’ENTREPRISES AGRÉÉ ............................................................................... 5](#a1248) [REPORT OF THE EXECUTIVE BOARD AND CORPORATE GOVERNANCE STATEMENT........................................ 6](#a1313) [CORPORATE GOVERNANCE STATEMENT FOR THE FINANCIAL STATEMENTS ................................................ 10](#a2002) [Audit report](#a2088) [............................................................................................................................................... 11](#a2088) [Statement of Financial Position ................................................................................................................... 16](#a2626) [Statement of Profit or Loss and Other Comprehensive Income.................................................................... 17](#a2864) [Statement of Changes in Equity ................................................................................................................... 18](#a3024) [Statement of Cash Flows ............................................................................................................................. 19](#a3336) [NOTE 1 – CORPORATE INFORMATION ........................................................................................................... 20](#a3608) [NOTE 2 – MATERIAL ACCOUNTING POLICIES.................................................................................................. 21](#a3756) [2.1](#a3762) [Basis of preparation ................................ ................................ ................................ ................................ .. 21](#a3762) [2.2](#a3972) [New accounting standards ................................ ................................ ................................ ........................ 22](#a3972) [2.3](#a4150) [Summary of material accounting policies ................................ ................................ ................................ ... 24](#a4150) [2.2](#a5230) [Geopolitical Crises and Macroeconomic Context ................................ ................................ ........................ 32](#a5230) [NOTE 3 – CASH AND CASH EQUIVALENTS ...................................................................................................... 33](#a5275) [As of 31 December 2024, and 2023, this caption only contained cash that was repayable on demand. ......... 33](#a5305) [NOTE 4 – FINANCIAL INSTRUMENTS .............................................................................................................. 33](#a5325) [4.1](#a5332) [Financial assets measured at fair value through profit or loss ................................ ................................ ..... 33](#a5332) [4.2](#a5719) [Financial liabilities measured at fair value through profit or loss ................................ ................................ . 34](#a5719) [4.3](#a6125) [Financial liabilities measured at amortised cost ................................ ................................ ......................... 35](#a6125) [NOTE 5 – LOANS AND RECEIVABLES ............................................................................................................... 36](#a6200) [NOTE 6 – OTHER ASSETS AND OTHER LIABILITIES .......................................................................................... 36](#a6242) [NOTE 7 – TAXATION ....................................................................................................................................... 36](#a6363) [NOTE 8 – SHAREHOLDERS’ EQUITY ................................................................................................................ 37](#a6489) [8.1](#a6497) [Share capital and share premium ................................ ................................ ................................ .............. 37](#a6497) [8.2](#a6577) [Reserves ................................ ................................ ................................ ................................ ................... 37](#a6577) [NOTE 9 – INTEREST INCOME AND EXPENSES.................................................................................................. 38](#a6659) [NOTE 10 – COMMISSION INCOME ................................................................................................................. 38](#a6746) [NOTE 11 – NET RESULT FROM FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS .......... 38](#a6841) [NOTE 12 – PERSONNEL EXPENSES .................................................................................................................. 38](#a6910) [NOTE 13 – OTHER OPERATING EXPENSES ...................................................................................................... 39](#a7008) [NOTE 14 – OFF-BALANCE SHEET ..................................................................................................................... 39](#a7138) [NOTE 15 – RISK MANAGEMENT ..................................................................................................................... 41](#a7673) [15.1](#a7692) [Market risk ................................ ................................ ................................ ................................ ............... 41](#a7692) [15.2](#a7765) [Foreign currency risk ................................ ................................ ................................ ................................ . 41](#a7765) [15.3](#a7809) [Credit risk ................................ ................................ ................................ ................................ ................. 42](#a7809) [15.4](#a7877) [Interest rate risk ................................ ................................ ................................ ................................ ....... 42](#a7877) [15.5](#a7900) [Liquidity risk ................................ ................................ ................................ ................................ ............. 42](#a7900) [15.6](#a8298) [Fair Value measurement ................................ ................................ ................................ ........................... 44](#a8298) [15.7](#a10522) [Operational risk ................................ ................................ ................................ ................................ ........ 51](#a10522) [NOTE 16 – RELATED PARTIES ......................................................................................................................... 51](#a10566) [NOTE 17 – REMUNERATION, ADVANCES AND LOANS GRANTED TO MEMBERS OF THE ADMINISTRATIVE](#a11220) [OR SUPERVISORY BODY .............................................................................................................. 54](#a11220) [NOTE 18 – INFORMATION ON LITIGATIONS ................................................................................................... 54](#a11267) [NOTE 19 – CAPITAL MANAGEMENT ............................................................................................................... 54](#a11311) [NOTE 20 – USE OF DERIVATIVES .................................................................................................................... 54](#a11332) [NOTE 21 - SIGNIFICANT CHANGES IN THE CURRENT PERIOD .......................................................................... 55](#a11367) [NOTE 22 – SUBSEQUENT EVENTS ................................................................................................................... 55](#a11381) SG Issuer Executive Board Members As at 31 December 2024 1 # EXECUTIVE BOARD MEMBERS Chairman: Mr Yves CACCLIN Employee of Société Générale Luxembourg 11, avenue Emile Reuter, L-2420 Luxembourg Members: Mr Thierry BODSON Employee of Société Générale Luxembourg 11, avenue Emile Reuter, L-2420 Luxembourg Mr François CARALP Employee of Société Générale Tour Société Générale, 17, cours Valmy,F-92987 Paris-La Défense 7, France Mr Julien BOUCHAT Employee of Société Générale Luxembourg 11, avenue Emile Reuter, L-2420 Luxembourg Mr Youenn LE BRIS Employee of Société Générale Luxembourg 11, avenue Emile Reuter, L-2420 Luxembourg Mr Laurent SIMONET Employee of Société Générale Tour Société Générale, 17, cours Valmy,F-92987 Paris-La Défense 7, France Mr Samuel WOROBEL Employee of Société Générale Tour Société Générale, 17, cours Valmy,F-92987 Paris-La Défense 7, France SG Issuer Supervisory Board Members As at 31 December 2024 2 # SUPERVISORY BOARD MEMBERS Chairman: Mr Laurent WEIL Employee of Société Générale Tour Société Générale, 17, cours Valmy,F-92987 Paris-La Défense 7, France Vice-president: Mrs Peggy VENIANT COTTIN Employee of Société Générale Luxembourg 11, avenue Emile Reuter, L-2420 Luxembourg Members: Mr Faouzi BORGI Employee of Société Générale Tour Société Générale, 17, cours Valmy,F-92987 Paris - La Défense 7, France Mr Gregory CLAUDY Independent Director 225A, rue du Burgknapp, B-6717 Heinstert,Belgium Mr Emanuele MAIOCCHI Employee of Société Générale Luxembourg 11, avenue Emile Reuter, L-2420 Luxembourg SG Issuer Audit Committee Members As at 31 December 2024 3 # AUDIT COMMITTEE MEMBERS Chairman: Mr Gregory CLAUDY Independent Director 225A, rue du Burgknapp, B-6717 Heinstert,Belgium Members: Mr Emanuele MAIOCCHI Employee of Société Générale Luxembourg 11, avenue Emile Reuter, L-2420 Luxembourg Mrs Peggy VENIANT COTTIN Employee of Société Générale Luxembourg 11, avenue Emile Reuter, L-2420 Luxembourg SG Issuer Management and Administration As at 31 December 2024 4 # MANAGEMENT AND ADMINISTRATION Issuer SG Issuer 10, Porte deFrance, L-4360 Esch-sur-Alzette, Luxembourg(following the decision of theExtraordinary General Meeting of 26 March 2025) 15, Avenue Emile Reuter,L-2420 Luxembourg, Luxembourg (until 25 March 2025) Guarantor (if applicable, as specified in the Final Terms) Société Générale 29, boulevard Haussmann, F-75009 Paris, France Arranger and Dealer Société Générale Tour Société Générale, 17, cours Valmy,F-92987 Paris-La Défense 7, France Security Trustee and Security Agent Trustee The Bank of New York Mellon Corporate Trustee Services Limited One Canada Square, London E14 5AL,United Kingdom Collateral Custodian The Bank of New York Mellon S.A., Luxembourg Branch Vertigo Building, Polaris, 2-4, rue Eugène Ruppert, L-2453 Luxembourg,Luxembourg Collateral Monitoring Agent The Bank of New York Mellon London Branch One Canada Square,London E14 5AL,United Kingdom Custodian Agent, Issuing and Paying Agent, Registrar, Exchange Agent and TransferAgent Société Générale Luxembourg 11, avenue Emile Reuter, L-2420 Luxembourg, Luxembourg Paying Agents Société Générale 29, boulevard Haussmann, F-75009 Paris, France & Société Générale, New York Branch 1221, avenue of the Americas, New York NY 10020, United States of America Warrant Agent Société Générale Luxembourg 11, avenue Emile Reuter, L-2420 Luxembourg, Luxembourg SG Issuer Legal advisers and Réviseur d’entreprises agréé As at 31 December 2024 5 # LEGAL ADVISERS AND RÉVISEUR D’ENTREPRISES AGRÉÉ Legal advisers Tothe Arranger as to English, French and U.S. laws Allen Overy Shearman Sterling LLP 52, avenue Hoche, CS 90005, 75379 Paris Cedex 08, France Tothe Trustee as to English Law Allen Overy Shearman Sterling LLP 1 Bishops Square, London E1 6AD, United Kingdom Tothe Arranger as to Luxembourg Law Allen Overy Shearman Sterling 5, avenue John F. Kennedy,L-1855 Luxembourg, Luxembourg Auditor (Réviseur d’Entreprises Agréé) PricewaterhouseCoopers, Société coopérative 2, rue Gerhard Mercator L-2182 Luxembourg SG Issuer Report of the Executive Board and Corporate Governance Statement (continued) As at 31 December 2024 6 # REPORT OF THE EXECUTIVE BOARD AND CORPORATE GOVERNANCE STATEMENT TheDirectorsofSG Issuer(the “Company”or “SGIS”)(each a“Director”,collectivelythe “ExecutiveBoard”) present the financialstatements and theReport of the ExecutiveBoard and CorporateGovernance Statement of the Company for the year ended 31 December 2024. 1. ACTIVITIES AND REVIEW OF THE DEVELOPMENTOF THE BUSINESS The purposeof SGIssuer isto issueNotes andWarrants withall typesof underlyingincluding, withoutrestriction, Shares, Index,Interest Rate,Dividend, Credit Risk,Foreign Exchange,Commodities, Funds, Warrants,allowing investorstoaccess tothe fullpricing capabilitiesofSociété Générale,which proposesanextensive rangeof investment strategies linked to these various asset classes. Notes and Warrants issuedby the Company can be sold in either Private Placements or Public Offerings.Notes are mainly Debt Securities, Bonds, Certificates. Issuing Proceeds raised bythe sale of the Notes are transferred to Société Générale Paris S.A.(“Société Générale”) through aFully Funded Swap (“FFS”),which perfectly mirrors SGIS for the full issue size. Warrants are financialproducts like Turbos,inline Warrants, daily LeverageCertificates, which aim to replicate thesamefinancialexposureasbuying(Call)orselling(Put)anassetsuchasashareoranindex,ata predetermined price (strike price) on apredetermined date (expiry) and to offer differentpay-off or exposures to investors. PaymentsinrespectoftheNotesandWarrantsissued bytheCompanyareunconditionally andirrevocably guaranteed by Société Générale. On request of investors, the Company can issue Collateralised Notes or Warrants (respectively “secured Notes” or “SecuredWarrants”) inorder topropose an additional layerof protection toinvestors incase ofdefault of Société Générale. Notes and Warrants issuances are governed by the programs prepared by Société Générale. The main programs for Notes are(i) the Debt Instruments Issuance Program, the Base Prospectus of which has beenupdatedandapprovedbytheCSSFon31May2024and(ii)the“Programmed'Emission deTitresde Créance”, the Base Prospectus of which has beenupdated and approved by theCSSF on 12 June 2024.Similarly, themainprogramforWarrantsistheWarrantsIssuanceProgram,forwhichthelastupdateshavebeen approved by the CSSF on 26 June 2024. Inaddition,(i)theGermanlawDualLanguageDebtInstrumentsIssuanceProgramhasbeenupdatedand approved bythe CSSFon 10June 2024and (ii)the DualLanguage Leveragedand TrackingProducts Issuance Program has been updated and approved by the CSSF on 2 July 2024. TheUKDebtInstrumentIssuanceprogramhasbeenapprovedbytheFCAon31May2024andtheSwiss Securities Issuance Program on 3 July 2024by the SIX Exchange Regulation Ltd. The state of business of the Companyat the closing of the financialyear is adequately presented in the financial statements published hereby. During 2024,21 737 newNotes wereissued (among which917 newsecured Notes) and1 553 newWarrants were issued. The net profit for the period from 1 January 2024to 31 December 2024 amounts to KEUR 234. The Company didnot exerciseany researchand development activity,does not haveany branch,and did not acquire any own shares. SG Issuer Report of the Executive Board and Corporate Governance Statement (continued) As at 31 December 2024 7 2. RISKS AND UNCERTAINTIES The risks associated withthe investment in theNotes or Warrantsdepend on several factors.Such factors will vary depending onthe characteristics ofthe Notesor Warrants issued, inparticular dependingon theunderlying type, thematurity,the secured/ unsecuredstatusof theNotesor Warrants,the interestratesincurred, the volatility of the underlying. For each Note, the Company systematically mirrors its position by contracting a FFS with SociétéGénérale, with strictlyidenticalcharacteristics.Also,foreachWarrant,theCompanysystematicallymirrorsitspositionby contracting an option with Société Générale, with strictly identical characteristics. The legal documentation and the derivativeinstruments have been put inplace in order to makesure that the assetsmatchtheliabilitiesatanytime.Therefore,nomarketriskissupportedbytheCompany.Therisk management inrelationtotheNotesandWarrantsisalsodescribed inNote15 ofthe financialstatements hereafter. 3. FUTURE DEVELOPMENTS AND PERSPECTIVES In 2024,SG ISSUER issuedwarrants and dailyleverage certificates overUS single stockand listedon the Hong Kong StockExchanges andClearing ( HKEX ) andthe Singapore ExchangeSecurities Trading Limited( Singapore Stock Exchange ) respectively. SG ISSUERwas thefirst issuer inAsia to offerUS Stocklisted products onboth the HKEX and Singapore Stock Exchange. 4. INFORMATION ON LITIGATIONS During the year ended 31 December 2020, SG Issuer,as the Issuer of Notes linked tothe credit risk of a French corporate,and SociétéGénérale, asthe Guarantor,were broughtbeforethe Courtsof Paris(alongside other French financialinstitutions) byend investors to obtaincompensation for thefinancial lossthey suffered ontheir investmentinthesesecurities.TheFrenchcorporatewasthesubjectofa“safeguardprocedure”,which constitutes acredit eventunder the termsof the Noteswhich had astrong impact onthe value ofthe Notes. These investors rely on unfounded allegationsaccording to which SGIssuer and Société Généralewere aware of the difficulties ofthe French corporatewhen setting upand marketingthese Notes andthat in doingso, they failedtomeettheirregulatoryobligations(toactinanhonest,fairandprofessionalmanner,toprovide information on the product risks and to determine the suitability of theNotes for retail investors). For this litigation, along withany other litigation relating to securitiesissued by SG Issuer, SG Issuer isentitled to an indemnification by Société Générale in respectof any sum due by SG Issuer regardingpotential damages or attorneys' fees. 5. CORPORATE GOVERNANCE STATEMENT TheExecutiveBoardoftheCompanyiscommittedtomaintainingthestandardsofcorporategovernance enforced at the levelof theEuropean Union andat level ofthe SociétéGénérale Group. Thisstatement describes the Company’s governance principles and practices. In compliancewith its status,the Companyis governedby anExecutive Boardand supervised bya dedicated Supervisory Board. SG Issuer Report of the Executive Board and Corporate Governance Statement (continued) As at 31 December 2024 8 5.1 Executive Board The Executive Boardsupervises andcontrols theManagement and operationsof theCompany andis responsible for the Company system of risk management and internal control. The Executive Board meetings are held on demand several times duringthe year. The ExecutiveBoard hasquorum whenmore thanhalf ofits membersare present.An opinionsupported by more than half of the members present becomes a decision. Key tasks of the Executive Board: - Ensures that the supervision of accountingis organized and monitored appropriately; - Reviews and approves the Company’s financial statements and condensed interim financial information; - Supervises and controls operative management. 5.2 Supervisory Board TheSupervisory Boardensurespermanently andby allmeanssuitedthe controlof theManagement ofthe Company carriedout bythe ExecutiveBoard. However,this supervision hasto betranslated inno wayby an interventioninthe Managementof theCompany.The SupervisoryBoardcan mandateadvisory committees comprisedofmembersoftheSupervisoryBoardand/orofothernon-memberstoleaddifferentmissions. TheSupervisoryBoardcanconfertheseadvisorycommitteesofthepowerormandatespermanentlyor temporary. These advisory committees cannot have the effect of restricting the powers of the Executive Board. 5.3 Audit Committee The mission ofthe Audit Committeeis to monitorthe issuesrelated to thepreparation and controlof accounting andfinancial information,to monitorthe independenceofthestatutoryauditors,as wellasto monitorthe efficiency of the internal control, measurement, supervision, and risk control systems related to the accounting and financial processes. If needed, itgives recommendations and its opinion to the SupervisoryBoard. An Audit Committee of the Company took place on 28 April 2025, duringwhich the financial statements for the yearended31December 2024andtheexternalauditresultswerepresented.Atleastonememberofthe committee must be independent, which is the case of the Chairmanof the Company’s Audit Committee. 5.4 InternalAudit The Internal Auditof both SociétéGénérale Luxembourg andSociété Générale supportthe Company’s Executive Boardinoverseeingthe Company’sactivities andsecuring itsoperationsby carryingoutinternalaudits and providing consultativeassistance. The objectiveof Internal Auditis toadd valueby making recommendations designed to improve the Company’s functioning. Internal Auditis an independent function, and its activitiesare based on international professional internal audit standards and rules ofethics. The centraltaskof InternalAudit istoaudit thefunctioning ofSG Issueron aregularbasis andevaluateits internal controls, risk management, and administrative function.The areas to be audited are determinedby the projected financial and operational risks concerned. Internal Audit can alsocarry out special assignments at the request of management. Internal Audit does not have any direct authority over the activitiesit reviews. ![image_0]() ![image_1]() SG Issuer Report of the Executive Board and Corporate Governance Statement (continued) As at 31 December 2024 9 5.5 Controls framework First levelof controlsis relatedto theexecution ofthe procedures, guidelinesand instructionsestablished to ensure the proper and efficient functioning ofthe Company. They are executed by the involved teams in charge of the production. Asecond levelof controlis ensuredby SociétéGénéraleLuxembourg: OutsourcedEssential Services(“OES”) supervision (ensuredbytheCorporatedepartment), MarketRiskandOperationalRisk(ensuredbytheRisk department), “Level 2 permanentcontrol” activity (monitoringand assessment ofthe level 1 permanentcontrol system). The Chief Financial Officer of the Company ensures thecompleteness of the procedural framework. 5.6 New Products Committee All thenew activities and businessof the Companyare analysed andauthorized by adedicated New Products Committee (NPC). All involved departments within Société Généraleare represented (operations, finance, risk, accounting standards, etc.) to assess the impact for the Company. 5.7 Service level agreements The Company and several of its service providers are subsidiaries of the SociétéGénérale Group. Service LevelAgreements (“SLAs”) weresigned bythe Companywith SociétéGénérale Luxembourgand with SociétéGénérale. TheSLAs governthe relationsbetween theentities aswell astheir respectiveobligations. The services supplied by Société Générale Luxembourg andSociété Générale are listed in the appendices of the agreements(mainlyGeneralservices, legalservices, businesscontinuitymanagementservicesandfinancial services fromSociété GénéraleLuxembourg andoperational services– MiddleOffice andBack Office– from SociétéGénérale).Inparticular,thecalculationoftheremunerationrelatedtotheissuance oftheNotesis delegated to Société Générale Paris Middle Office within the framework of the SLA. Luxembourg, 29 April 2025 For the Executive Board Yves CACCLIN Chairman of the Executive Board Youenn LE BRIS Member of the Executive Board ![image_0]() ![image_1]() SG Issuer Report of the Executive Board and Corporate Governance Statement (continued) As at 31 December 2024 10 # CORPORATE GOVERNANCE STATEMENT FOR THE FINANCIAL STATEMENTS Tothe best of our knowledge, the financial statements gives a true and fair view of the financial position of the Company as at31 December 2024, andof its financial performanceand cash flowsfor the yearthen ended in accordance with International Financial Accounting Standards (“IFRS”)as adopted by the EuropeanUnion,and the Reportof theExecutive Board(management report)includes afair presentationof thedevelopment and performance of the business andthe position of the Company,together with a descriptionof the main risks and uncertainties that it faces. Luxembourg, 29 April 2025 Executive Board Member For the Executive Board Yves CACCLIN Chairman of the Executive Board Youenn LE BRIS Member of the Executive Board ![image_2]() 11 Audit report Tothe Shareholders of SG Issuer # Report on the audit of the financial statements Our opinion In our opinion, the accompanyingfinancial statements givea true and fair view of the financialposition of SG Issuer (the“Company”) as at 31 December 2024, and ofits financial performance and itscash flows for the year then endedin accordance with IFRS AccountingStandards. What we have audited The Company’s financial statements comprise: ● the Statement of Financial Positionas at 31 December 2024; ● the Statement of Profit or Loss andOther Comprehensive Incomefor the year then ended; ● the Statement of Changes in Equityfor the year then ended; ● the Statement of Cash Flows forthe year then ended; and ● thenotes tothe financialstatements, includingmaterial accountingpolicy informationandother explanatory information. Basis for opinion We conducted ouraudit in accordance with the EU Regulation No 537/2014, the Law of23 July 2016 on theaudit profession (Law of23 July 2016) and withInternational Standards on Auditing(ISAs) as adoptedforLuxembourgbythe“CommissiondeSurveillanceduSecteurFinancier”(CSSF).Our responsibilities under the EU Regulation No537/2014, the Lawof 23 July 2016 and ISAsas adopted for Luxembourgby theCSSF arefurther describedin the“Responsibilitiesof the“Réviseurd’entreprises agréé” for the audit of the financialstatements” section of our report. We believe that theaudit evidencewe have obtainedis sufficient and appropriateto provide a basisfor our opinion. WeareindependentoftheCompanyinaccordancewiththeInternationalCodeofEthicsfor Professional Accountants, includingInternational IndependenceStandards, issued bythe International EthicsStandardsBoardforAccountants(IESBACode)asadoptedforLuxembourgbytheCSSF together withthe ethicalrequirementsthat are relevantto ouraudit ofthe financialstatements. Wehave fulfilled our other ethical responsibilitiesunder those ethical requirements. Tothe best of our knowledge and belief, we declarethat we have not provided non-audit services that are prohibited under Article 5(1) ofthe EU Regulation No 537/2014. Thenon-auditservicesthatwehaveprovidedtotheCompanyanditscontrolledundertakings,if applicable, for the year then ended, aredisclosed in Note 13 to the financialstatements. Key audit matters The keyaudit mattersare thosethat, inour professionaljudgment, wereof mostsignificance inthe audit of the financialstatements for the currentperiod. These matterswere addressed inthe context of ![image_2]() 12 ourauditofthefinancialstatementstakenasawholeandforthepurposeofformingouropinion thereon, and we do not express a separateopinion on these matters. Key audit matter How our audit addressed the keyaudit matter Mirroring of the financialinstruments issued The activity of the Company mainly consists ofissuingNotes(securedandunsecured) andWarrants(the“financialinstruments issued”). Asof 31December 2024, thetotal balance ofthe financialinstrumentsissued, presentedinfinancialliabilitiesatfairvalue throughprofitorloss,amountsto KEUR 49,197,158(refertoNote4.2).The Company owns financial assets at fair value throughprofitorlosswhichamountsto KEUR 49,195,862 (refer to Note 4.1). Toeconomicallyhedgetherisksofthe financialinstrumentsissued,theCompany entersintoderivativestransactionswith Société GénéraleS.A., presentedin financial assetsatfairvaluethroughprofitorloss. These derivatives (Fully FundedSwaps and Options) fullyreplicate thecharacteristics of thefinancialinstrumentsissued(defined hereafter as “mirroring”). Duetothesignificanceofthefinancial instrumentsissuedontheCompany’s balancesheetandthepotentialfinancial impactofanon-perfecthedge,wehave consideredthemirroringofthefinancial instruments issued as a key audit matter. Aspartoftheauditprocedures onthemirroring ofthe financial instruments issued, we carriedout the following audit procedures: ● WehaveinquiredwiththeManagementandthe financeteamoftheCompanytoobtainan understandingofthedesignandimplementationof the control environment; ● Wehaveinspectedtheminutesofthegovernance bodies (Executive Board,Audit Committee andBoard ofDirectors)toinspectwhetheranyincidentshave been reported; ● Wehavereperformedthemirroringcontrolfora sampleofdates,includingthe31December2024 occurrence.TheCompany’scontrolaimstoensure thebalancingbetweentheassets(derivatives)and the liabilities (financialinstruments issued); ● Wehaveinspectedtheevidenceofthecontrol performed bytheCompany tomonitorthemirroring suspense items.The Company’scontrol objectiveis toensurethequickclearingofanymirroring discrepancies, if any; ● We haveinspected theintragroup reconciliation with Société Générale S.A. and inspected that therewere no material differences; ● Wehave reconciledthe financialinstruments issued andtherelatedderivativeinstrumentswiththe external confirmations obtained; ● We have used our internalvaluation specialists foran independentvaluationofthesampleoffinancial instrumentsissuedandofasampleofrelated derivatives instruments to assess the accuracy of the valuation and of the mirroring; ● We have compared thepresentation and disclosures of these instruments in thefinancial statements of the CompanywiththerequirementsoftheIFRS Accounting Standards. Other information TheExecutiveBoardisresponsible fortheotherinformation.Theotherinformationcomprisesthe informationstatedintheannualreportincluding theReportoftheExecutiveBoardandCorporate Governance Statement but doesnot include the financialstatements and our audit report thereon. Our opinionon thefinancial statements doesnot coverthe otherinformation and wedo notexpress any form of assurance conclusionthereon. ![image_2]() 13 In connectionwith ouraudit ofthe financialstatements,our responsibilityis toread theother information identified above and, in doingso, consider whether the other informationis materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to bematerially misstated. If, basedon the workwe have performed,we concludethat there is a materialmisstatement of this other information, we are requiredto report that fact. We have nothing toreport in this regard. Responsibilities ofthe ExecutiveBoard andthose chargedwith governanceforthe financial statements The Executive Boardis responsiblefor the preparationand fair presentationof the financialstatements in accordance with IFRSAccounting Standards, and forsuch internal control asthe Executive Board determines isnecessary to enablethe preparation offinancial statements thatare free frommaterial misstatement, whether due to fraud orerror. In preparing the financial statements,the Executive Board is responsiblefor assessing the Company’s ability to continue as a going concern, disclosing, as applicable, mattersrelated to going concern and using the going concern basis of accounting unless the Executive Board either intends to liquidatethe Company or to cease operations,or has no realistic alternativebut to do so. ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreporting process. TheExecutiveBoardisresponsibleforpresentingthefinancialstatementsincompliancewiththe requirementssetoutintheDelegatedRegulation 2019/815 onEuropeanSingleElectronicFormat (“ESEF Regulation”). Responsibilities of the “Réviseurd’entreprises agréé”for the audit of the financial statements The objectives of our audit are to obtainreasonable assurance aboutwhether the financial statements as awhole are freefrom material misstatement,whether due tofraud orerror,and toissue anaudit report that includes our opinion. Reasonable assurance is a high level of assurance, butis not a guarantee that an auditconducted in accordance with theEU Regulation No 537/2014, the Law of23 July 2016 and withISAs asadopted for Luxembourg by the CSSF willalways detect a materialmisstatement when it exists. Misstatements can arise from fraud or error andare considered materialif, individually or in the aggregate, theycould reasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthese financial statements. As partof anaudit in accordancewith theEU Regulation No 537/2014, the Law of23 July 2016 and with ISAs asadopted for Luxembourg by theCSSF,we exercise professional judgment and maintain professional scepticism throughoutthe audit. We also: ● identify andassess therisks ofmaterial misstatement ofthe financial statements,whether due to fraudorerror,designandperformauditproceduresresponsive tothoserisks,andobtainaudit evidence thatis sufficient andappropriate toprovide abasis forour opinion.The risk ofnot detecting a material misstatementresulting fromfraud is higherthan for oneresulting fromerror, as fraud may involvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternal control; ● obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate inthe circumstances, but not forthe purpose of expressing anopinion on the effectiveness of the Company’s internalcontrol; ![image_2]() 14 ● evaluate theappropriateness ofaccounting policiesusedandthereasonableness ofaccounting estimates and related disclosures madeby the Executive Board; ● concludeontheappropriatenessoftheExecutiveBoard’suseofthegoingconcernbasisof accounting and,based on theaudit evidenceobtained, whethera material uncertaintyexists related toevents orconditions thatmay castsignificant doubton theCompany’s abilityto continueas a going concern. If weconclude that a material uncertaintyexists, we are required todraw attention in ouraudit report tothe related disclosuresin the financialstatements or,if suchdisclosures are inadequate, to modify our opinion.Our conclusions are based on the auditevidence obtained up to the date of ouraudit report. However, futureevents or conditionsmay cause the Companyto cease to continue as a going concern; ● evaluate theoverall presentation,structure andcontent ofthe financialstatements, includingthe disclosures, and whether thefinancial statements representthe underlying transactionsand events in a manner that achieves fair presentation. Wecommunicate withthose chargedwith governanceregarding, amongother matters,the planned scopeandtimingoftheauditandsignificantauditfindings,including anysignificant deficienciesin internal control that we identify duringour audit. We also provide those charged with governancewith a statement that we have complied with relevant ethical requirementsregarding independence,andcommunicate tothemallrelationships andother matters that mayreasonably be thought tobear on our independence, and whereapplicable, actions taken to eliminate threats or safeguardsapplied. From the matterscommunicated withthose charged withgovernance, wedetermine thosematters that were of most significancein the audit ofthe financial statementsof the currentperiod and aretherefore the key audit matters. We describethese mattersin ouraudit reportunless lawor regulationprecludes publicdisclosure about the matter. We assesswhether thefinancial statementshave beenprepared, inall materialrespects, incompliance with the requirements laid downin the ESEF Regulation. # Report on other legal and regulatory requirements The Report of theExecutive Board is consistent with the financial statements and hasbeen prepared in accordance with applicablelegal requirements. The CorporateGovernance Statementis includedin theReport ofthe ExecutiveBoard. Theinformation requiredbyArticle68terParagraph(1)Lettersc)andd)oftheLawof19December2002onthe commercialandcompaniesregisterandontheaccountingrecordsandannualaccountsof ![image_2]() ![image_3]() 15 undertakings,asamended,isconsistentwiththefinancialstatementsandhasbeenpreparedin accordance with applicablelegal requirements. We havebeen appointedas “Réviseurd’EntreprisesAgréé” bythe GeneralMeeting ofthe Shareholders on 26 April 2024 and theduration of ouruninterrupted engagement, including previous renewalsand reappointments, is 1 year. We have checked thecompliance ofthe financial statementsof the Companyas at 31 December 2024 withrelevant statutoryrequirements setoutintheESEFRegulation thatareapplicable tofinancial statements. For the Company it relates tothe requirement that financialstatements are prepared in a validXHTML format. In our opinion, the financialstatements of the Companyas at 31 December 2024 havebeen prepared, in all material respects, in compliancewith the requirements laiddown in the ESEF Regulation. PricewaterhouseCoopers, Sociétécoopérative Represented by @esig Franck Pansera Luxembourg, 29 April 2025 The accompanying Notes are an integral part of these financial statements. 16 SG Issuer Statement of Financial Position As at 31 December 2024 Notes (‘000 EUR) 2024 (‘000 EUR) 2023 Cash and cash equivalents 3 63 575 42 010 Financial assets at fair value through profit or loss - Mandatorily measured at fair value throughprofit or loss 4.1 49 117 912 51 118 092 - Trading derivatives 4.1 77 950 57 316 Loans and receivables 5 50 026 50 035 Other assets 6 292 904 2 182 233 Total assets 49 602 367 53 449 686 Financial liabilities at amortized cost 4.3 96 621 82 741 Financial liabilities at fair value through profit or loss - Designated at fair value through profit or loss 4.2 49 120 262 51 112 066 - Trading derivatives 4.2, 13 76 896 57 148 Other liabilities 6 306 067 2 195 502 Tax liabilities 7 87 13 Totalliabilities 49 599 933 53 447 470 Share capital 8.1 2000 2 000 Share premium - - Legal reserve 8.2 200 200 Other reserves 8.2 - - Profit for the financial year 234 15 Totalequity 2 434 2 216 Totalliabilities and equity 49 602 367 53 449 686 The accompanying Notes are an integral part of these financial statements. 17 SG Issuer Statement of Profit or Loss and Other Comprehensive Income For the year ended 31 December 2024 Notes (‘000 EUR) 2024 (‘000 EUR) 2023 Interest income 9 3 496 2 685 Commission income 10 42 950 47 931 Total revenues 46 446 50 616 Interest expenses 9 (29 739) (36 384) Netgain/(loss)fromfinancialinstrumentsatfairvalue through profit or loss 11 263 (335) Personnel expenses 12 (256) (303) Other operating expenses 13 (16 393) (13 563) Totalexpenses (46 125) (50 585) Profit before tax 321 31 Income tax 7 (87) (16) Profit for the financial year 234 15 Total comprehensive income for the financial year 234 15 The accompanying Notes are an integral part of these financial statements. 18 SG Issuer (‘000 EUR) Share capital (‘000 EUR) Share premium (‘000 EUR) Legal reserve (‘000 EUR) Other reserves (‘000 EUR) Total reserves (‘000 EUR) Profit or (loss) for the financial year (‘000 EUR) Totalequity As at 31 December 2022 2 000 - 200 (214) (14) 590 2 576 Allocationoftheresultofthepreviousyear before dividend distribution - - - 590 590 (590) - Dividend to the sole shareholder - - - (375) (375) - (375) Capital increase/Allocation tothe sharepremium account (Note 8.1) - 22 050 - - - - 22 050 Reimbursement of theshare premium(Note 8.1) - (22 050) - - - - (22 050) Profit for the financial year 2023 - - - - - 15 15 As at 31 December 2023 2 000 - 200 1 201 15 2 216 Allocationoftheresultofthepreviousyear before dividend distribution - - - 15 15 (15) - Dividend to the sole shareholder - - - (15) (15) (15) Capital increase/Allocation tothe sharepremium account (Note 8.1) - 34 361 - - - - 34 361 Reimbursement of theshare premium(Note 8.1) - (34 361) - - - - (34 361) Other adjustments (1) (1) (1) Profit for the financial year 2024 - - - 234 234 As at 31 December 2024 2 000 - 200 - 200 234 2 434 Statement of Changes in Equity For the year ended 31 December 2024 The accompanying Notes are an integral part of these financial statements. 19 SG Issuer Statement of Cash Flows For the year ended 31 December 2024 Notes (‘000 EUR) 2024 (‘000 EUR) 2023 OPERATING ACTIVITIES Profit for the financial year 234 15 Non cash adjustments : Net change in fair value and foreign exchange difference 4.1, 4.2 (83 015) (427 831) Change in cost of risk 5 0 Net(increase)/decrease in financial assets 4.1 142 922 (6 280 576) Net increase/(decrease) in financial liabilities 4.2 (38 530) 6 740 308 (Increase)/decrease in other assets 6 1 889 329 (1 838 738) Increase/(decrease) in tax liabilities and otherliabilities 6, 7 (1 854 986) 1 834 880 Taxespaid 7 (13) 201 NET CASH FLOWS FROM OPERATING ACTIVITIES 55 941 28 259 FINANCING ACTIVITIES Payment of capital surplus \* 8.1 (34 361) (22 050) Dividend paid (15) (375) NET CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES (34 376) (22 425) Cash and cash equivalents as at January 1 st 3 42 010 36 176 Net increase/(decrease) in cash and cash equivalents 21 565 5 834 Cash and cash equivalents as at December 31 st 63 575 42 010 Additional information on operational cash flows from interest and dividends Interest paid 36 331 24 735 Interest received 9 3 496 2 685 Dividend received - - \* KEUR 34 361 for the year ended 31 December 2024(and KEUR 22 050 for the year ended 31 December 2023) represent the share premium reimbursedby the Company to the shareholder (refer to Note 8.1). SG Issuer Notes to the financial statements As at 31 December 2024 20 # NOTE 1 – CORPORATE INFORMATION SG Issuer (hereafter the"Company" or “SGIS”) isa Luxembourg company incorporated on 16November 2006 as a public limited company (“Société Anonyme”)for an unlimited period. Since April 2013, the Company’s corporate objects areto issue debt securities, bonds,certificates, warrants and any other debt securities or acknowledgements ofdebts or financial securities, whetheror not accompanied by guarantees, with any type of underlyingsecurity, including, without limitation, company stock, anyother capital security or securityother than capital,index, currency,exchange rate,interest rate,dividend, credit risk, fund unit, investment companystock, term deposit,life assurance contract,loan, merchandise,term contract, option, Warrant or option coupons, allocatedor unallocated preciousmetals, unit ofaccount, basket or any otherfactor or any other type of underlying securities andany combination of the latter. Tothat effect,the Companymaypurchase, hold,dispose of,lend, loanor resell,byanymeans, includingin particulartheuse oftrusts, intrustor repurchase,anytypeofassetswhatevertheirnamesandformsand whether or notaccompanied by guarantees,in particularfinancial instruments (financialsecurities - stocks,fund units, bonds, certificates,Warrants - orfinancial contracts -swaps, options orother) orany otherdebt securities, acknowledgements ofdebts orcapital securities, receiveor issue monetaryloans (including loansconvertible intoshares ofthe Company)- withinthe groupof companiesto whichthe Companybelongs -and tosupply guarantees in any form (actual guarantees suchas pledges, securities,mortgages or other - personalguarantees or any other form of guarantee) fortheir own account, for the account of the group of companies to which the Company belongs or on behalf of third parties. The Company’s financial year begins on 1 January andends on 31 December each year. The Company’s capital is divided into 50 011 shares, of which 49 911 are held bySociété Générale Luxembourg (hereafter “SG Luxembourg”) and 100 are held by SociétéGénérale S.A.. The accounts of the Company for theyear ended 31 December 2024 are included in the consolidated accounts of Société Générale S.A. (hereafter ”Société Générale”or the “parent Company” orthe “SG Group”), which is at oncethesmallestandthe largestbodyofundertakings ofwhichtheCompanyformsapartasasubsidiary undertaking, and whose head-officeis located at 29, boulevard Haussmann, 75009 Paris, France. SG Issuer Notes to the financial statements As at 31 December 2024 21 # NOTE 2 – MATERIAL ACCOUNTING POLICIES 2.1 # Basis of preparation 2.1.1 Statement of compliance The financialstatementsof theCompany asat andfor theyear ended31 December2024 havebeen preparedin accordancewithInternationalFinancialAccountingStandards(“IFRS”)asadoptedbytheEuropeanUnionand interpretations adopted by theInternational Accounting Standards Board (“IASB”). The financial statements asat and for theyear ended 31December 2024were authorised for issueby the Supervisory Board on 28 April 2025. 2.1.2 Functional and presentation currency The financial statements are prepared in Euro(“EUR”), which is the Company’s functional currency and the currency of its sharecapital. Unless statedotherwise, the amounts inthe financial statementsare expressed inthousands of EUR (KEUR).The value“0” indicatesthe presenceof anumber,which isrounded tozero,while “-“represents the value nil. 2.1.3 Critical estimates and judgments The preparation ofthe Company’s financial statementsrequires Executive Boardto make judgments,estimates and assumptionsthataffectthereportedamountoffiguresrecordedinthestatementofprofitorlossandOther Comprehensive Income, on theunrealised or deferred gainsand losses, on thevaluation of assets andliabilities in the statement of financial position, and on information disclosed in thenotes to the financial statements. Inorder tomakethese assumptionsand estimates,the ExecutiveBoarduses informationavailable atthe dateof preparationofthefinancialstatementsandcanexerciseitsjudgment.Bynature,valuationsbasedonestimates include risks anduncertainties relatingto their occurrencein thefuture. Consequently, actualfuture resultsmay differ from these estimates and may then have a significant impact on thefinancial statements. Uncertainty about theseassumptions and estimates could resultin outcomes thatrequire a materialadjustment to thecarryingamountofassetsorliabilitiesaffectedinfutureperiods.IntheprocessofapplyingtheCompany’s accounting policies, Executive Boardhas made the followingjudgments and assumptions concerning the future and other keysources ofestimation uncertaintyat thereporting date,that havea significantrisk ofcausing amaterial adjustment to the carrying amounts of assets and liabilities within thenext financial year. Existing circumstances and assumptionsaboutfuturedevelopmentsmaychangeduetocircumstancesbeyondCompany’scontrolandare reflected in the assumptionsif and whenthey occur. Items with themost significant effect onthe amounts recognized in the financial statements with substantial Executive Boardjudgment and/or estimates are listed below withrespect to judgments/estimates involved. The use of significant estimates and judgment mainlyconcerns the following topics: ● Fair value in the statement of financial position of financial instruments not quoted in an active market which are classified as financial assets and liabilitiesat fair value through profit or loss (see Notes 4.1 and 4.2); ● The analysis of the contractual cash flow characteristics of financialassets (see Note 2.3.3.1). 2.1.4 Segment reporting Nodedicated managementreporting informationispresented forSGIS toa chiefdecision maker;only theannual financial statements are presented to the Executive Board of SGIS in analysing the performance of the Company. The Company has mainly one geographical area related to its revenue, which is France. ![image_p24i0]() ![image_p24i1]() ![image_p24i2]() ![image_p24i3]() ![image_p24i4]() ![image_p24i5]() ![image_p24i6]() ![image_p24i7]() ![image_p24i8]() ![image_p24i9]() ![image_p24i10]() SG Issuer Notes to the financial statements As at 31 December 2024 22 2026 •Amendments to IAS 21 "Lack of Exchangeability" 2025 •Amendments to IFRS 9 "Amendments to the classificationand measurement of financial instruments" •Amendments to IFRS 9 and IFRS 7 “Contracts ReferencingNature-dependent Electricity ” (PPA and VPPA) 2027 •IFRS 18 "Presentation and Disclosure in Financial Statements" 2.2 # New accounting standards 2.2.1 New accounting standards applicable as at 1 January 2024 AMENDMENTS TO IFRS16 “Lease liabilityin a sale and leaseback” Theseamendmentsprovideclarificationsonthesubsequentmeasurementofleasebacktransactionswhenthe original sale ofthe asset meetsthe criteria ofIFRS 15 “Revenuefrom contractwith customers” forrecognition asa sale.Theseamendmentsspecify inparticularhowtosubsequently measuretheleaseliabilityarisingfromthese leaseback transactions, made of variable leasepayments that do not depend on anindex or a rate. This amendment has no impact on theCompany financial statements as the Company does not have property, plant or equipment. 2.2.2 Accounting standards, amendments or interpretations to be applied by the Companyin the future TheIASBpublishedaccountingstandardsandamendments,someofwhichhavenotbeenadoptedbythe European Unionas at31 December 2024.Their applicationis required forthe financial yearsbeginning on orafter 1 January 2025 atthe earliestor onthe dateof theiradoption bythe EuropeanUnion. Theyhave thusnot beenapplied totheCompany asat31 December2024.Thesestandards areexpectedtobeapplied accordingtothefollowing schedule: Amendments to IFRS 21 “Lack of exchangeability” Published on 15 August 2023 These amendments specifythe circumstances in whicha currency is exchangeable(or not) into anothercurrency, and howtodeterminetheexchangeratetoapplywhenacurrencyisnotexchangeable.Theyalsoaddtothelistof supplementaryinformationtobedisclosedintheannextothefinancialstatementswhenacurrencyisnot exchangeable. The provisions of these amendments are already appliedto the preparation of the Company’s financial statements. SG Issuer Notes to the financial statements As at 31 December 2024 23 Amendments to IFRS 9 "Amendments to the classificationand measurement of financial instruments" Published on 30 May 2024. These amendmentsclarify theclassification offinancial assets,in particularon howto assesswhether contractual cash flows of afinancial asset are consistent witha basic lending arrangement. Theythus clarify the classification of financial assets with environmental, social and governance (ESG)-linked features. They also include specifications regarding the classification of contractually linked instruments andof financial assets guaranteed solely by security rights. Furthermore,theseamendmentsalsospecifyhowtoapplythederecognitionoffinancialassetssettledthrough electronic payment systems. New disclosures are alsorequired on theinvestments in equity instrumentsoriginally designated atfair value through other comprehensive income,and the financialassets and liabilitieswith contingent features, such asthose with ESG- linked features. The amendments should have no impact on the Company’sfinancial statements. Amendments to IFRS 9 and IFRS 7 “Contracts referencing nature-dependentelectricity” (PPA and VPPA) Published on 18 December 2024. The IASB issued amendments to IFRS9 and IFRS 7 relatingto contracts referencingnature-dependent electricity the produced quantity of which is subject to hazard and variability. The contracts concerned can be settled: - through contracts to buy or sell nature-dependent electricity: Power Purchase Agreements(PPA); - virtually settled net for the difference betweenthe contractually agreed priceand the market price:Virtual Power Purchase Agreements (VPPA). These amendments clarifythe conditions for theapplication of the ownuse exemption which allowsfor the exclusion of the Group-owned PPAs from the application scope of IFRS 9. These amendments should have no impact on the Company’s financialstatements. IFRS 18 "Presentation and disclosure in financial statements” Published on 9 April 2024. This standard will supersede IAS 1 “Presentation of Financial Statements”. It willnot changethe rulesfor recognisingassets, liabilities,income andexpenses, northeir measurement;it only addresses their presentation in the Primary financialstatements and in their related Notes. The main changes introduced by this newstandard affect the income statement. The latter will have to be structured bymandatorysub-totalsandarticulatedinthreecategoriesofincomeandexpenses:theoperatingincomeand expenses, investment income and expenses, and financing income andexpenses. For entities, forwhich investing in particular typesof assets or providing financing tocustomers is one oftheir main business activities, such as banking andinsurance entities, the standardprovides for an appropriatepresentation of the income and expenses relating to these activitiesunder the operating income and expenses. SG Issuer Notes to the financial statements As at 31 December 2024 24 IFRS 18also requirespresenting inthe Notes management-definedperformance measures (MPMs),i.e. alternative measures definedby theManagement ofthe entityand usedfor publiccommunication (justificationof theuse of these measures, calculation method, reconciliation withthe subtotals required by the standard). Finally,the standardprovides guidanceon howto aggregateand disaggregatematerial informationin theprimary financial statements and in the related Notes. The applicationof IFRS18 willbe requiredfor annualperiods beginning on1 January 2027;this applicationwill be retrospective with a restatement of comparative information. The impact of thisstandard on theCompany’s financial statements iscurrently being analysed as notyet in forceat the date of these financial statements. 2.3 # Summary of material accounting policies 2.1.5 Foreign currency transactions The Company maintains its books in EUR, whichis the currency of the capital. Assets andliabilities denominated inforeign currenciesare translatedinto EURat theexchange ratesruling atthe reportingdate.Foreignexchangedifferencesarisingontranslationandrealizedexchangegainsandlossesare recognised in thestatement of profitor lossand OtherComprehensive Incomein the caption “Net gainsfrom financial instruments at fair value through profit or loss” and “Interest Expenses” . Revenues and expenses inforeign currencies aretranslated into EUR atthe exchange ratesprevailing at thedate of the transactions. The most importantforeign currency positionsfor the Companyare USD, JPY, GBP, HKD and CHF. Thefollowing foreign exchange rates were used: USD JPY GBP HKD CHF 31.12.2024 1.0389 163.06 0.82918 8.0686 0.9412 31.12.2023 1.1050 156.3300 0.86905 8.6314 0.9260 2.1.6 Cash and cash equivalents Cash and cash equivalents comprise only cashrepayable on demand. CashandcashequivalentsintheCompanyaresubjecttoimpairmentunderIFRS9andarepresentednetof impairment (cf. Note 2.3.3.3). 2.1.7 Financial instruments 2.3.3.1Classification of financial instruments Classification of financial assets Financial assetsare classifiedunder IFRS9 basedon thecharacteristics oftheir contractualcash flowsand onhow they are managed (business models). For the debt instrumentsheld, SGIS has definedits business model as“hold to collect”for the Fully FundedSwaps, for Cash and cash equivalents andfor Loans and receivables.These assets are acquired inorder to collect the contractual cash-flows attached to the assets. No sale has been made in the past years and no saleis anticipated in the future. SG Issuer Notes to the financial statements As at 31 December 2024 25 The Fully Funded Swaps(hereafter “FFS”) are economicallyassimilated to loanswith embedded derivatives(the swap embedded inthe FFS).This typeof financialassets complies withthe IFRSAccounting Standardsdefinition ofdebt instruments (fixed maturity, coupon calculated as a rate, no right nor interest/control in an entity). As these financial assets of SGIS contain embedded derivatives that modify the cash flows of the entire contract, the contract does not passtheSolelyPaymentsofPrinciplesandInterest(or“SPPI”)testandconsequentlythesefinancialassetsare mandatorily measured at Fair Value through Profit or Loss (“FVTPL”). Cash and cashequivalents and Loansand receivables areSPPI compliantand arethus measured atamortised cost. Cash and cash equivalents and Loansand receivables are subject toimpairment under IFRS 9 and arepresented net of impairment. The Options held, covering the Warrants issued, are Trading derivatives and thus measured at FVTPL. Purchases and sales offinancial assets recorded underfinancial assets atfair value through profit orloss and Financial assets at fair value through other comprehensive income are recognised in thestatement of financial position at the delivery-settlement date.Changes in fair valuebetween the tradeand settlement dates arerecorded in the income statement orbooked to shareholders’equity depending on the accounting categoryof the relevant financial assets. Loans and receivables arerecorded in statement offinancial positionon the date theyare paid orat the maturitydate forinvoicedservices.Thetradedateisthedateonwhichthecontractualcommitmentbecomesbindingand irrevocable for the Company. Classification of financial liabilities Financial liabilities are classified into one of thefollowing two categories: ● Financial liabilities at fair value through profit or loss: Thesearefinancial liabilitiesheldfortradingpurposes, whichbydefaultincludederivative financialliabilities not qualifyingashedginginstrumentsandnon-derivativefinancialliabilitiesdesignatedbytheCompanyuponinitial recognition to be carried at fair value through profit or loss in accordance with thefair value option. The Company hasdesignated at fairvalue through profitor loss the notesissued because mirror transactions(Fully Funded Swaps or “FFS”) that are used to mirror those notes are measured mandatorily at fair value through profit or loss and thus reduce the accounting mismatch. ● Financial liabilities at amortised cost: These include the other non-derivative financial liabilitiesand are measured at amortized cost. 2.3.3.2Valuation of financial instruments Definition of fair value Fair valueis theprice that wouldbe receivedto sellan assetor paidto transfera liability inan orderlytransaction between market participants at the measurement date. Intheabsenceofobservablepricesforidenticalassetsorliabilities,thefairvalueoffinancialinstrumentsis determinedusinganother measurementtechniquethatmaximisestheuseofobservable marketinputbasedon assumptions that market operators would use to set the price of theinstrument in question. Fair value hierarchy The fair values of financial instruments include accruedinterest as applicable. For information purposes, in the notes to the financial statements, the fair valueof financial instruments is classified using a fair value hierarchy that reflects the significance of the inputs used according tothe following levels: SG Issuer Notes to the financial statements As at 31 December 2024 26 Level 1 (L1): instruments valued on the basis of quotedprices (unadjusted) in active markets for identical assets or liabilities Level 1 instruments carried at fair value on the statement of financial position include in particularshares listed in an activemarket,governmentorcorporatebondspriceddirectlybyexternalbrokers/dealers,derivativestradedon organised markets(futures, options), andunits of funds(including UCITS) whosenet asset valueis availableon the statement of financial position date. A financial instrumentis regardedas quoted inan active marketif quotedprices are readilyand regularly available from an exchange,dealer, broker,industry group, pricing service or regulatory agency,and if they reflect actual and regular market transactions on an arm’s length basis. Determining whether a market is inactiverequires the use of indicators such as asharp decline in trading volume and the levelof activityin themarket, a sharpdisparity inprices overtime andamong thevarious above-mentionedmarket participants, orthe factthat the latesttransactions conductedon an arm’slength basisdid not takeplace recently enough. Where a financial instrument is traded in several marketsto which the Company has immediate access, its fair value is represented by the market price at which volumes and activity levelsare highest for the instrument in question. Transactions resulting frominvoluntary liquidationsor distressedsales areusually nottaken into accountto determine the market price. Level 2 (L2): instruments valued using inputs otherthan quoted prices included in Level 1that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e.derived from prices) These are instruments measured usinga financial model based on observable marketinputs. Prices published by an external source derived from the valuationof similar instruments are considered as data derivedfrom prices. Level 2 instruments include in particularnon derivative financial instruments carriedat fair value on the statement of financialpositionthatarenotdirectlyquotedordonothaveaquotedpriceonasufficientlyactive market(e.g. corporatebonds, repostransactions, mortgage-backedsecurities, unitsof funds),and firmderivatives andoptions traded over-the-counter: interest rate swaps, caps, floors, swaptions, equityoptions, index options, foreign exchange options, commodity options and credit derivatives. The maturities of theseinstruments are linked to ranges of terms commonly tradedin themarket, and theinstruments themselvescan besimple oroffer a morecomplex remuneration profile (e.g. barrieroptions, products with multipleunderlying instruments), with said complexityremaining limited however.The valuation techniques used in this category are based on common methods shared by the main market participants. Level 3 (L3): instruments valued using inputs thatare not based on observable market data (referred to as unobservable inputs) Level3 instrumentscarried atfair valueon thestatement offinancial positionare predominantlyinstruments for which the sales marginis not immediately recognized in profit or loss. In the contextof SGIS, this sales margin is not applicableand hence not recognised because there is a corresponding offsetting margin on the fundedswap. Accordingly, Level 3 financial instruments include derivatives with longer maturities than thoseusually traded and/or withspecificallytailoredreturnprofiles.Similarly,debtmeasuredatfairvalueisclassifiedasLevel3wherethe valuation of the associated embedded derivatives is also basedon unobservable inputs. SG Issuer Notes to the financial statements As at 31 December 2024 27 The main L3 complex derivatives are: ● Equity derivatives: optionswith long maturities and/orincorporating bespoke remunerationmechanisms. These instruments are sensitive to market inputs(volatility, dividend rates,correlations, etc.). In the absence of market depthandanobjectiveapproachmadepossiblebyregularlyobservedprices,theirvaluationisbasedon proprietarymethods(e.g.extrapolationfromobservabledata,historicalanalysis).Hybridequityinstruments (i.e. having at least onenon-equity underlying instrument)are also classified asL3 insofar as correlations between the different underlying are generally unobservable; ● Interestratederivatives:long-term and/orexoticoptions, productssensitive tocorrelationbetweendifferent interestrates,differentexchange rates,or betweeninterestratesand exchangerates,for examplefor quanto products (in which the instrument is settled in a currency different from the currency of the underlying); they are liable tobe classified asL3 becausethe valuation inputsare unobservabledue tothe liquidity ofthe correlated pair andthe residual maturity ofthe transactions (e.g. exchangerate correlationsare deemed unobservable for the USD/JPY); ● Creditderivatives:L3creditderivativesmainlyincludebasketsofinstrumentsexposedtotimetodefault correlation (“N to default” products in which the buyer of the hedge is compensated as of the Nth default, which are exposedto thecredit qualityof theissuers comprising thebasket andto theircorrelation, orCDO Bespoke products, whichare CollateralisedDebt Obligationscreatedspecifically fora groupof investorsand structured according to their needs), as well as products subject tocredit spread volatility; ● Commodityderivatives:thiscategoryincludesproductsinvolvingunobservable volatilityorcorrelationinputs (i.e. options on commodity swaps or instruments basedon baskets of underlyings). At the level of SG Group, valuation models are determined in order tofully embed the impact of IFRS 13as described aboveanduseappropriateparametersandmethodologiesinordertodetermineL3instrumentsvaluation. CounterpartycreditriskestimatesreliesonCreditValueAdjustments(CVA)andDebitValueAdjustments(DVA) calculations. Differentcalculation methodscan existregarding theCVA-DVA/ OCA(Own CreditAdjustment) impact calculation: derived from the yield discounting methodology, other from the Monte-Carlo EPE/ENE (Expected Positive / Negative Exposure). Themethodology forcalculation ofCVA-DVA(OCA notapplicable tothe Company)applied toSGIS (the same as the SG Group) is the yield discountingmethodology. The valuation methods used by the Company to establish thefair value of financial instruments are detailed below. The fair values of financial instruments include accruedinterest as applicable. ● For Unsecured Notes and Fully Funded Swaps Thefairvalueforboth theunsecuredNotes(liabilities) andtheFullyFunded Swap(FFS)(assets) iscalculatedby discounting the expected futurecash flows withthe risk-free curve. Totake the creditadjustment into account, the risk-freecurveisadjustedwithSociétéGénéraleGroup’screditspreadcurve.Adedicatedprocesshasbeen implementedusingSociétéGénéraleGroupandSGISoperationalteams’input.Thisprocessisfullyfunctional, constantly monitored as of today. ● For Secured and Repack Notes SecuredNotesareNoteswhicharecollateralizedwithassetsdepositedonsegregatedorpooledaccountswith external custodian (TheBank of NewYork Mellon S.A., LuxembourgBranch, hereafter “BNYMellon Luxembourg”)and pledged in favour of the Note holders. Repack Notes are Notes whichallow investors to calibrate the funding yieldof their structure by selectinga bond (the “Reference Bond”) issued by a third-party issuer (the “Reference Bond Issuer”). The collateral assets are composed of eligible securities. SG Issuer Notes to the financial statements As at 31 December 2024 28 Should Société Générale defaults, the pledge on the assetsis to be enforced; the Notes holders are exposed to credit risk of thecollateral (external securities). Therefore,as Société Générale andSGIS act solely asintermediaryfor risk transfer,the credit risk premium(external bonds issuers) shallnot be adjusted withSociété Générale creditspread. Thus, no additional credit adjustment is neededfor the secured Notes. The fairvalue of theSecured Notes and theRepack Notes andthe associated FFSis computed, foreach accounting period, by discounting the expected future cash flows by a compositeRepo rate curve. ● For Warrants and Options Forfinancialinstrumentsrecognisedatfairvalueinthestatementoffinancialposition,fairvalueisdetermined primarily on the basis of the prices quoted in an active market.These prices can be adjusted if none are availableon the statement of financial position date or if the clearing value doesnot reflect transaction prices. However, due especially to the varied characteristics offinancial instruments traded over thecounter on the financial markets, a large number of financial products traded by theCompany does not have quoted prices in the markets. The base modelsmay not fully capture allfactors relevant to the valuation ofSGIS on thesefinancial instruments such as credit risk(CVA), own credit (DVA) and/orfunding costs (FVA). Therefore, SGIS applies varioustechniques (from the Group) to estimate the credit risk associated with its financialinstruments measured at fair value. The revaluationdifferencesattributabletothe Company’scredit riskarethus determinedusing valuationmodels whichtakeintoaccountthemostrecentfinancingtermsandconditionsonthemarketsalongwiththeresidual maturity of the related liabilities. ● For secured notes issued by the Company,as investors are not exposed to the Company’srisk, no own credit risk should impact the fair value of the instruments and as such,no adjustment has to be calculated; ● For unsecured notes, investors are not contractually exposedto the Company’s credit risk but to SociétéGénérale Group’sown credit risk. SGISvaluationmodelsthereforereflectstheabsenceofcreditrisk,andstructuredbondsarenotimpactedby Own Credit Adjustments within the entity. Deferred margin related to main unobservable inputs TheCompanydoesnotapplydeferredmarginrelatedtoitsmainunobservableinputsasmarginonNotesand Warrants issued are offset by a similar margin on Fully Funded Swaps and Optionspurchased. 2.3.3.3Impairments and provisions Some financial assets involve credit risk which exposes the Company to a potential loss if the counterparties were to be unable to respecttheir financial commitments. The Company is remuneratedfor bearing this risk bya portion of the contractual interest that it receives on those assets; this is known as thecredit margin. This potentialloss, or expectedcredit loss,is recognisedin profit orloss withoutwaiting for theoccurrence ofa default event on a specific counterparty. For loansand receivablesmeasured atamortised costor fairvalue throughother comprehensiveincome, theexpected credit loss,as assessed bythe Company,is recognisedin profitor loss.On thestatementof financialposition, this potential loss is recognised asan impairment that reduces thecarrying amount of assetsmeasured at amortised cost. Impairments are written-back in caseof a subsequentdecrease of creditrisk. No impairment isrecognised on cash andcash equivalents,as thecredit riskis immaterial.The Companydoes nothaveloan commitmentsor financial guarantees contracts. SG Issuer Notes to the financial statements As at 31 December 2024 29 The group assesses on a forward-looking basis theexpected credit losses associated withits debt instruments carried at amortised cost. The impairmentmethodology applied depends onwhether there has been asignificant increase in creditrisk.Fortradereceivables,thegroupappliesthesimplifiedapproachpermittedbyIFRS9,whichrequires expected lifetime losses to be recognised from initial recognition of thereceivables. Impairment and provisions for credit risk Todetermine the amount ofimpairment or loss allowancesto be recordedat each reporting date,these exposures are classifiedinto oneof three categoriesbased onthe increase incredit riskobserved since initial recognition.An impairment or loss allowance shall be recognised for theexposures in each category as follows: ● ExposuresclassifiedinStage1:Attheinitialrecognitiondate,theexposuresaresystematicallyclassifiedin Stage1, unlesstheyareunderperforming/credit-impaired onacquisition andduringthe lifetimeofthe credit. Stage 1exposuresareimpairedfortheamountofcreditlossesthattheCompanyexpectstoincurwithin 12 months (12-month expected credit losses), based onpast data and the current situation; ● Exposures classified in Stage 2: Toidentify Stage 2 exposures, the significantincrease in credit risk isassessed by theCompany,takingintoaccountthecounterparty’screditriskrating,themagnitudeofthechangeinthe counterparty’s credit rating and the existence of payments delays of more than 30 days; ● Exposures classified in Stage 3 (doubtfuloutstanding): The Company determineswhether or not thereis objective evidence of impairment (default event). Stage 2 and 3 exposures are impaired for the amount of credit losses that the Company expects to incur over the life oftheexposures(lifetimeexpectedcreditlosses),takingintoconsiderationpastdata,thepresentsituationand reasonable forecast changes in economic conditions, and relevant macroeconomic factors through to maturity. Impairments / Reversal of impairments Impairments / Reversal of impairmentsincludes net reversals of impairmentand loss allowancesfor credit risk, losses on irrecoverable loans and amounts recovered on amortised receivables. 2.3.3.4Offsetting financial assets and financial liabilities A financial assetand afinancial liabilityare offset andthe netamount presented onthe statement offinancial position when the Company has a legally enforceable rightto set off the recognised amounts and intends either tosettle the assetandliabilityonanetbasis,ortorealisetheassetandsettletheliabilitysimultaneously. The legal right to set off the recognised amounts must beenforceable in all circumstances, in both the normalcourse of business and in the event of default of one of thecounterparties. The financial instruments issued by the Company are subscribed by the investorsthrough Société Générale as a lead manager during theissuance period andas a market makerfor a secondarymarket. The instrumentswhich are unsold are held by SG. The treatment isapplied based on IAS 32Paragraph 42: “Afinancial asset and afinancial liability shall be offsetand the net amount presented in the statement of financial position when,and only when, an entity: ● Currently has a legally enforceable right to set off the recognized amounts; and ● Intends either to settle on a net basis, or to realise the assetand settle the liability simultaneously.” In December 2014, acash netting clause wasadded in the legalframework with Société GénéralePersonne Morale and the Companyconsequently acquired a legallyenforceable right tooffset the recognizedamount with the same counterparty (Société Générale).The assets (theFully Funded Swaps) andthe liabilities (the Notes) aresettled (and intended to be settled) simultaneously. SG Issuer Notes to the financial statements As at 31 December 2024 30 In June 2017, the Company added a new cashnetting clause in the legal framework with Société GénéralePersonne Morale and the Company consequently acquired a legally enforceable rightto offset the recognized amount with the same counterparty(Société Générale).Theassets (OTCOptions) andthe liabilities(the Warrants)aresettled (and intended to be settled) simultaneously. In application of IAS 32 - Offsetting a financial asset and a financial liability, the Company proceeds to the accounting netting ofthe non-soldamounts. Theimpact ofthe off-settingfor thenon-sold Notesand thecorresponding Fully Funded Swaps and impact ofthe off-setting forthe non-sold Warrants andthe corresponding options are described in Note 4.1 and Note 4.2. 2.1.8 Other assets and other liabilities Settlement accounts for trades are included in other assets or other liabilitiesand are presented separately in distinctive captions on assets or liabilities side (cf. Note 6). 2.1.9 Shareholders’ equity Equity arethe resources contributedto theCompany by externalshareholders as capital,as wellas the cumulative and undistributed results (retained earnings). The statement “Changes in Shareholders’ Equity” presents the various changes that affect the components of equity over the reporting period. 2.1.10 Interest income and expense Interest is recognizedas expense or income overthe life of the financingservice granted or received, proportionally to the principal amount outstanding. Interest income and expense are recorded in the statement of profit or loss and Other Comprehensive Income under Interest and similar incomeand Interest and similarexpense for all financialinstruments measured usingthe effective interestmethod(instrumentsatamortised costanddebtinstrumentsatfairvaluethroughother comprehensive income). The effectiveinterestrateistakentobe therateused tonetdiscount futurecashinflowsand outflowsoverthe expectedlifeoftheinstrumentinordertoestablishthenetbookvalueofthefinancialassetorliability. The calculation of this rate considers the future cashflows estimated on the basis of thecontractual provisions of the financial instrumentwithout takingaccount ofpossible futurecreditlosses andalso includescommissions paidor received betweenthe partieswhere thesemaybe assimilatedto interest,directly linkedtransaction costs,and all types of premiums and discounts. Where a financialasset is classifiedin Stage 3for impairment, subsequentinterest income ismeasured at theeffective interest rate applied to thenet carryingamount of thefinancial assetwith an offsettingentry equalto the outstanding financial asset before impairment. 2.1.11 Fee income and expense Fee incomeand Feeexpense combinefees onservices renderedand received,as wellas feeson pledgedsecurity granted that cannotbe assimilatedto interest. Feesthat canbe assimilated tointerest are integrated intothe effective interest rate on the associated financial instrument and are recorded under Interest income and Interest expenses. SG Issuer Notes to the financial statements As at 31 December 2024 31 TheCompanyrecognizesfeeincomeorexpenseforanamountequivalenttotheremunerationfortheservice provided and depending on the progress transferring controlof these services: ● Fees for ongoing services, such as custody fees and administration costs are recognized as income over the life of the service; ● Fees for one-off services, such as issuance and listing fees arerecognized as income when the service is provided. The possible mismatchbetween the paymentdate of theservice provided andthe date ofexecution ofthe service gives assets and liabilities depending on the type of contract and mismatch which are recognized under Other Assets and Other Liabilities.For example: suppliercontracts generate trade payables, accruedexpenses or prepaidexpenses. Income relatedto theissuance ofNotes andWarrantsfalls underthe scopeof IFRS15 andas such,isconsidered separately as income generated by 2 services when the Company performs its activities: ● The issuing fee recognized upfront for the initiation and the structuration of the issuance; ● Account and security servicing during thelifecycle of the security. 2.1.12 Other operating expenses The Company records operating expenses according to the type of servicesto which they refer. Other operating expenses mainly include lease payments, building maintenance and other costs, travel and business expenses, outsourcing and advisory fees and marketing andadvertising expenses. Detail is provided in Note 12. 2.1.13 Income tax Income tax includes current taxes and deferred taxes: ● Current taxes correspond to the amount of taxes due (or refundable) as calculated according to the taxable profit base for the reporting period; ● Deferredtaxes correspondto theamount oftaxes resultingfrom pasttransactions and thatwill bepayable (or refundable) in a future reporting period. 2.3.9.1Current tax Current tax isbased onthe taxableprofit anddetermined inaccordance withthe rulesestablished bythe localtaxation authorities, upon which income taxes are payable. This tax expense also includes net allowances fortax adjustments pertaining to income tax. Taxcredits arising in respect ofinterest from loansand income from securities arerecorded in the relevantinterest account as theyare appliedin settlementof incometaxes for theyear. The related taxcharge isincluded underIncome tax in the statement of profit or loss and Other Comprehensive Income. 2.3.9.2Deferred tax Deferred taxes are recognized wheneverthe Companyidentifies a temporarydifference between theaccounting base and tax base for assets and liabilities that will affect future tax payments or from tax loss carriedforward. The amount isbased on the taxrate enactedor substantively enacted whichis expectedto apply when theasset is realized, or the liability settled. These deferred taxes are adjusted in the event of changesto tax rates. This amount is not discounted to present value. TheCompany off-sets its deferred taxassets against liabilities as there is both legal rights to offset its current tax assets and liabilities and it is the Company’s intention to settle on a net basis. SG Issuer Notes to the financial statements As at 31 December 2024 32 2.3.10Other commitments linked to secured notes In relationto eachSerie of SecuredNotes, in orderto secure itsobligations in respectof such Notes,the Company enters into a pledge agreement which is governed by the Luxembourg act dated 5 August 2005 onfinancial collateral arrangements,asamended.Undereachpledgeagreement,theCompanygrantsfirstrankingsecurityoverthe Collateral Assets containedin oneor more accountsheld by theCompany withBNY MellonLuxembourg (or suchother custodian oraccount bankas isspecified inthe applicableFinal Terms, pursuant tothe termsof acustodian agreement between, inter alia, the Company and the collateral custodian). The security granted under each pledge agreement is granted either in favour of: - (i) in thecase of EnglishLaw Notes, The Bankof New York Mellon CorporateTrustee Services Limited or suchother security trustee as is specified in the applicable Final Terms as security trustee on behalf of itself and the relevant Noteholders and theother relevant SecuredParties (as definedin the AdditionalTerms and Conditions forSecured Notes) or, - (ii) in the case of French Law Notes, directly in favour of the relevant Noteholders and the other relevant Secured Parties as represented by The Bank of New York Mellon Corporate Trustee Services Limited or such other security agent as is specified in the applicable Final Terms as security agent. Following the occurrence ofa Secured Note AccelerationEvent (as defined in theAdditional Terms and Conditions for Secured Notes), all Noteholders whose Notes have become immediately due and payable is first entitled to claim for anyoutstanding amountsdue tothem underthe termsof theGuarantee.If neitherthe Issuernor theGuarantor (pursuantto theterms ofthe Guarantee)has paidall amountsdue toNoteholders withina periodof 3Collateral BusinessDaysfollowingtheoccurrence ofaSecuredNote AccelerationEvent,Noteholders maysend anotice in writing tothe SecurityTrustee(in thecase ofEnglish LawNotes) orthe SecurityAgent (inthe caseof FrenchLaw Notes)requestingthattherelevantPledgeAgreementbeenforcedinaccordancewiththetermsoftheBase Prospectus. TheCompany borrowsthesecurities tobepledgedfrom SociétéGénéraleGroup.Inaccordance withIFRS9,the borrowing of thesecurities to be pledged bythe Company is notassimilated to the transferof assets and thus does notresultinrecognition inthestatementof financialposition. Therisksand rewardsassociated tothesecurities remain in Société Générale Group and as suchare not presented in the Company’s statement of financial position. Thepledgedsecuritiesareaccountedasanoffbalance-sheetcommitment“Securitiespledged”.Thecommitted amount is re-measured at each closing to reflect the value of thesecurities pledged. 2.2 # Geopolitical Crises and Macroeconomic Context 2024 was marked by geopolitical uncertainties,with, in particular, the continuing conflict inUkraine and the situation in the Middle-East.In the U.S.A.,economic growthwas higher thanexpected, sustained bystrong consumption. Inthe eurozone, aftera first half-year when business remained resilientespecially in the services sector,economic growth slackened in the second half-year,in particular as a result of theweakness of the German economy and the political uncertainties inFrance. InChina, thesupport measuresonly allowedforeconomic growthnotto deteriorateany further without any actual upturn. In this context, the Group Société Générale updated the macroeconomic scenarios chosen for the preparation of the consolidated financial statements and maintained some adjustments applied toits models. These macroeconomicscenarios aretaken intoaccount inthe creditloss measurementmodels includingforward- looking data and are also used in tests of the recoverability of deferred tax assets. The methodological framework defined by theGroup Société Générale is applied at the level of the Company. SG Issuer Notes to the financial statements As at 31 December 2024 33 # NOTE 3 – CASH AND CASH EQUIVALENTS CashandcashequivalentsamounttoKEUR63575asat31December2024(31December2023: KEUR 42 010)and are mainly composed of cash heldwith Société Générale Luxembourg and Société Générale. As of 31 December 2024, and 2023,this caption only contained cash that wasrepayable on demand. # NOTE 4 – FINANCIAL INSTRUMENTS4.1 # Financial assets measured at fair value through profit or loss 31.12.2024 31.12.2023 (’000 EUR) (’000 EUR) Financial assets at fair value through profit or loss - Mandatorily at fair value through profit or loss (Fully Funded Swaps) 49 117 912 51 118 092 - Trading derivatives (Options) 77 950 57 316 Total 49 195 862 51 175 408 As at 31 December2024, financial assetsmandatorily at fair value throughprofit or loss (FullyFunded Swaps) amount to KEUR49 117 912(31 December 2023: KEUR51 118 092)and replicateall the Notes issuedby the Company (see Note 4.2). Differences between the fair value of Fully Funded Swaps and Notes arise due tolate settlements. As at 31December 2024,Trading derivatives (Options) amountto KEUR 77950 (31 December 2023:KEUR 57 316)and replicate allthe Warrantsissued by the Company(see Note 4.2).Differences betweenthe fair valueof Options and Warrants arise due to late settlements. As at 31December 2024,the impactof theoffsetting of financialassets andfinancial liabilities(decrease inthe balance sheet) isKEUR 36453 866forthe non-soldNotes andthe correspondingFully FundedSwaps (31 December2023: KEUR 27 385 976)and KEUR 5 492093 for the non-soldWarrants and the corresponding Options(31 December 2023: KEUR 4 020 277)(see Note 4.2). Please also see Note 15.6.3 for the disclosure of thefair value hierarchy. The movements in financial assetsat fair value through profit or loss were as follows: (‘000 EUR) Mandatorily at fair value through profit or loss (‘000 EUR) Trading derivatives (‘000 EUR) Total As at 1 January 2024 51 118 092 57 316 51 175 408 Acquisition 19 105 860 52 253 19 158 113 Maturity/Disposal/Liquidation/Cancellation (19 275 209) (25 816) (19 301 025) Change in fair value and foreign exchange difference (1 830 831) (5 803) (1 836 634) As at 31 December 2024 49 117 912 77 950 49 195 862 SG Issuer Notes to the financial statements As at 31 December 2024 34 (‘000 EUR) Mandatorily at fair value through profit or loss (‘000 EUR) Trading derivatives (‘000 EUR) Total As at 1 January 2023 38 757 924 1 025 209 39 783 133 Acquisition 40 748 369 552 880 41 301 249 Maturity/Disposal/Liquidation/Cancellation (33 790 350) (1 230 337) (35 020 687) Change in fair value and foreign exchange difference 5 402 149 (290 436) 5 111 713 As at 31 December 2023 51 118 092 57 316 51 175 408 4.2 # Financial liabilities measured at fair value through profit or loss 31.12.2024 31.12.2023 (’000 EUR) (’000 EUR) Financial liabilities at fair value through profit or loss - Mandatorily at fair value through profit or loss (Notes) 49 120 262 51 112 066 - Trading derivatives (Warrants) 76 896 57 148 Total 49 197 158 51 169 214 As at 31 December 2024, the Company hasissued secured and unsecured Notes for a total amount of KEUR 49 120 262 (31 December 2023:KEUR 51 112 066): ● 24 334 unsecured Notes were issued (stock) for a total amount of KEUR 43 580459(31 December 2023: 22 973 unsecured Notes were issued (stock) for a total amount of KEUR 45 246 924); ● 1 030 secured Notes were issued (stock) for a total amount of KEUR 5 539 803 (31December 2023: 426 secured Notes were issued (stock) for a total amount of KEUR 5 865 142). InadditiontotheguaranteeonfirstdemandgrantedbySociétéGénéraleonunsecuredandsecuredNotes, subscribers ofthe securedNotes issuedby theCompany benefitfrom additionalcollateral assetssecuring thepayment due underthe Notesterms, structured inform ofa pledge governedby LuxembourgLaw. Thispledge may onlybe enforced following a default of the Company or Société Générale in its role of Guarantor. Pledged collateral assets are deposited on anaccount held in the nameof the Company with an authorisedcustodian not belonging to the Société Générale Group and are pledged in favour of theNotes holders. Asat31December2024,securitiesdepositedatTheBankofNewYorkMellonS.A./NV,LuxembourgBranchas collateral for secured issuances amount to KEUR 7 251 220 (31 December2023: KEUR 5 865 142). Asat31December2024,theCompanyalsoissuedWarrantsforatotalamountofKEUR76 896 (31December 2023:KEUR 57148). Referto Note14 forfurther detailson Off-balancesheet itemsrelatedto the Warrants activity. As at 31December 2024,the impactof theoffsetting of financialassets andfinancial liabilities(decrease inthe balance sheet) isKEUR 36453 847forthe non-soldNotes andthe correspondingFully FundedSwaps (31 December2023: KEUR 27 385 976)and KEUR 5 492093 for the non-soldWarrants and the correspondingOptions (31 December2023: KEUR 4 020 587)(see Note 4.1). Please also see Note 15.6.3 for the disclosure of thefair value hierarchy. SG Issuer Notes to the financial statements As at 31 December 2024 35 The movements in financial liabilities at fair value through profit orloss were as follows: (‘000 EUR) Designated at fair value through profit or loss (‘000 EUR) Trading derivatives (‘000 EUR) Total As at 1 January 2024 51 112 066 57 148 51 169 214 Acquisition 19 190 860 51 603 19 242 463 Cancelled/Liquidation/Maturity Disposal (19 269 183) (25 689) (19 294 872) Change in fair value and foreign exchange difference (1 913 481) (6 166) (1 919 647) As at 31 December 2024 49 120 262 76 896 49 197 158 (‘000 EUR) Designated at fair value through profit or loss (‘000 EUR) Trading derivatives (‘000 EUR) Total As at 1 January 2023 38 754 129 1 025 105 39 779 234 Acquisition 40 748 369 552 818 41 301 187 Cancelled/Liquidation/Maturity Disposal (33 364 749) (1 230 338) (34 595 087) Change in fair value and foreign exchange difference 4 974 317 (290 437) 4 683 880 As at 31 December 2023 51 112 066 57 148 51 169 214 # 4.3Financial liabilities measured at amortised cost As at 31December 2024 and 2023, financial liabilities atamortised cost are mainly composedof a convertible bond of KEUR 48 000, issued bythe Company and fully subscribedby Société Générale Luxembourg, with maturity in2025. Conversion may occur each year. On thisconvertible bond, theCompany paysto SociétéGénérale Luxembourgboth variable interestscalculated on Euribor 3M plusa marginof 0.34%(total rate of3.086%as at31 December 2024)and activityrelated interests. Activity related interests meansan amount equal to 100% of the activityrelated profit generated by the Company. The convertiblebond maturity shallbe automatically extendedby successive periodsof one year,unless either the Issuer orthe Holderhas exercisedits rightto terminatethe bondon thescheduled maturitydate. Theconversion option belongs to the Holder. Estimation of the fair value of financial liabilities at amortisedcost is disclosed in Note 15.6. SG Issuer Notes to the financial statements As at 31 December 2024 36 # NOTE 5 – LOANS AND RECEIVABLES As at 31 December 2024 and 2023, loans andreceivables only consist in deposits with Société Générale Luxembourg, which represent the reinvestment of the Company’s share capital, reserves and other available funds. Asat31December2024,expectedcreditlossescalculatedonloansandreceivablesinaccordancewithIFRS9 amounted to EUR 154. The fair values of loans and receivables are presented in the Note 15.6.2. # NOTE 6 – OTHER ASSETS AND OTHER LIABILITIES Asat31December2024and2023,otherassetsandotherliabilitiesarecomposedofsettlementaccounts,as presented below: (‘000 EUR) 31.12.2024 (‘000 EUR) 31.12.2023 Settlement accounts on securities transactions 123 756 1 926 198 Miscellaneous receivables 169 148 256 035 Total other assets 292 904 2 182 233 (‘000 EUR) 31.12.2024 (‘000 EUR) 31.12.2023 Settlement accounts on securities transactions 124 095 1 931 937 Deferred income 6 576 5 218 Miscellaneous payables 175 396 258 347 Total other liabilities 306 067 2 195 502 Miscellaneous payables andreceivables mainly consist of premiumpayables on Warrants and receivables onfinancial instrumentsreplicatingtheWarrantsissued.ThevarianceislinkedtotheactivityoftheCompanyandtheearly settlement of some balances compared to prior year. # NOTE 7 – TAXATION The Company is liable for all taxes applicable to Luxembourg commercial companies. Since 2007, the Company has been part ofa tax integration group led by SG Luxembourg, as authorised by the article 164bisLIRandhasconcludedaTaxSharingAgreement(the“Agreement”)withSGLuxembourg.Underthe Agreement, theCompany paysto SGLuxembourg, withrespect toeach financialyear,an amountequal tothe tax which would be levied on the profits of the Companyin the absence of any tax consolidation with the Parent. The effectivetax rateof currenttax applied asof 31 December2024 is 24.94% (31 December2023: 25.08 %).The current tax rate includes the corporate tax and the municipal tax. For the year ended 31 December 2024, tax expenses amount toKEUR 87 (31 December 2023: KEUR 16). No deferred tax are existing for the Company. The Company belongs toa group that is withinthe scope ofthe EU/OECD PillarTwo model rules. Pillar Two legislation was enactedin Luxembourg,the jurisdiction inwhich thecompany isincorporated, whichhas comeinto effectfor fiscal years starting on or after 31 December 2023. SG Issuer Notes to the financial statements As at 31 December 2024 37 Under the legislation, the Company is liable to pay a top-up tax for the difference between its Pillar Two effective tax rate per jurisdiction and the 15% minimum tax rate. TheCompanyperformedanimpactassessmentoftheOECD(OrganisationforEconomicCo-operationand Development) transitional safe harbour rules and the full Pillar Two rules. The Company concluded that it should not be subject to top-up tax for the current year. # NOTE 8 – SHAREHOLDERS’ EQUITY8.1Share capital and share premium On 30 November 2020, 100 shareswere sold by SG Luxembourg to Société Généralefor a total amount of EUR 4 000. SG Luxembourg stillheld 49 907 sharesamounting to EUR 1996 280 forwhich it waived itsentire voting rightsand righttodividends. Afterthistransaction,the subscribedand fullypaid sharecapitalamountedto EUR2 000280, divided into 50 007 shares with nominal value ofEUR 40 each. No other restrictions are attached to the shares. By resolution adopted on 15 January 2024, the Executive Board decided to increase the capital of the Company from EUR2,000400toEUR2,000440bytheissueofanewsharewithanominalvalueofEUR 40,subscribedby SG Luxembourg. Inthecontextofthecapitalincrease,the2023activityrelatedinterestsamountingtoKEUR34,361havebeen allocated to the Share premium. It was then paid to the shareholders in June2024. As at 31 December 2024, the subscribedand fully paid share capitalis EUR 2 000 440, dividedinto 50 011 shares with nominal value of EUR 40 each. The Company manages its capital to ensure it will be able to continue as agoing concern. The capital amount may be increased, subject to the approval of the Shareholders, if the Company’s activity evolves, incurringspecific additional risks. # 8.2Reserves 8.2.1 Legal reserve In accordance with theLuxembourg law, the Company is required to allocatea minimum of5% of its annualnet profit to a Legal reserve until this reserve equals 10% of the subscribedshare capital. This reserve may not be distributed. As at 31 December 2024 and 2023, thelegal reserve amounts to KEUR 200 (31 December2023: KEUR 200). 8.2.2 Other reserves Since 2013, the Company is fiscally integrated in its parent company Société Générale Luxembourg. Société Générale Luxembourg constitutesthe Net WealthTaxreserve forthe Company.As a consequence,no additional Net Wealth Tax reserve has been constituted by the Company since 2013. During the first half of 2024, a dividend of KEUR15 has been paid (31 December2023: KEUR 375). SG Issuer Notes to the financial statements As at 31 December 2024 38 # NOTE 9 – INTEREST INCOME AND EXPENSES (‘000 EUR) 31.12.2024 (‘000 EUR) 31.12.2023 Interest income on cash and cash equivalents 1 478 940 Interest income on loans and receivables 2 018 1 745 Totalinterest income 3 496 2 685 Interest expenses on financial liabilities at amortized cost (note 4.3) (29 041) (36 063) Interest expenses on financial liabilities at fair value (698) (321) Totalinterest expenses (29 739) (36 384) Net interest margin (26 243) (33 699) # NOTE 10 – COMMISSION INCOME Commission income can be broken down as follows: (‘000 EUR) 31.12.2024 (‘000 EUR) 31.12.2023 Issuing upfront fees on Notes 36 725 42 133 Servicing fees on Notes 5 515 5 089 Commission on Warrants 710 709 Commission income 42 950 47 931 Asat31December2024,KEUR6576areretainedasdeferredincomeunderthecaption“otherliabilities” (2023: KEUR 5 218)(cf. Note 6). # NOTE 11 – NET RESULT FROM FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR # LOSS Net result from financial instruments at fair value through profit or loss can be broken down as follows: (‘000 EUR) 31.12.2024 (‘000 EUR) 31.12.2023 Net gain on financial assets held for trading 23 356 786 26 984 339 Net gain on financial assets at fair value option 12 569 826 9 930 605 Net loss on financial liabilities held for trading (23 355 568) (26 983 187) Net loss on financial liabilities at fair value option (12 570 781) (9 932 092) Total 263 (335) # NOTE 12 – PERSONNEL EXPENSES (‘000 EUR) 31.12.2024 (‘000 EUR) 31.12.2023 Wages and salaries (218) (252) Social charges and associated costs (19) (26) Pension related costs (19) (25) Total (256) (303) SG Issuer Notes to the financial statements As at 31 December 2024 39 The Company had 3 full-time equivalents duringthe year ended 31 December 2024 (2023:3). The annual costof pension iscalculated and invoicedby SociétéGénérale Luxembourg, basedon SG Luxembourg’s group total cost of pensions and according to the number ofthe Company’s full time equivalent employees. # NOTE 13 – OTHER OPERATING EXPENSES (‘000 EUR) 31.12.2024 (‘000 EUR) 31.12.2023 Issuance fees (12 620) (11 109) Other operating charges (3 773) (2 454) Total (16 393) (13 563) Issuance fees mainly consistof listing fees, collateral monitoringagent fees, maintenance ofregisters fees and trading fees. Other operating charges aremainly composed ofoperating costs relatedto the Company(including auditfees) as well as activities outsourced to Société Générale S.A. andSociété Générale Luxembourg. Remuneration of the Réviseur d’entreprises agréé The fees paid by the Company to its Réviseur d’Entreprises Agréé were as follows: (‘000 EUR) 31.12.2024 (‘000 EUR) 31.12.2023 Statutory audit of the financial statements 226 194 Other assurance services 40 39 Total 266 233 Other assurance services for the year consists of a limitedreview as of 30 June. # NOTE 14 – OFF-BALANCE SHEET As at 31 December 2024,financial instruments to beissued (commitment taken before 31 December2024 with value date after 31 December 2024) amount to KEUR 8 583 451(31 December 2023: KEUR 4 721740). SG Issuer Notes to the financial statements As at 31 December 2024 40 Warrants issuance summary The Warrants issued as at 31 December 2024 and 2023 break downas follows: 31 December 2024 31 December 2023 Warrant Type Category of Underlying Type of Underlying Option Type Quantity Notional (‘000 EUR) Fair Value (‘000 EUR) Quantity Notional (‘000 EUR) Fair Value (‘000 EUR) Currency Warrant Currency Currency Call 42 317 609 - Put 47 271 723 - Equity Warrant Equity Ordinary Share Call 136 1 891 844 13 188 522 9 474 493 11 691 Put 1 441 35 156 224 55 957 250 2 437 384 3 412 REIT Call 1 31 976 2 - - - Fund Mutual Fund Call 3 74 598 298 2 102 479 - Put 3 40 044 5 991 1 30 883 Funds Fund Fund Call - - 9 37 467 5 006 Mutual Fund Call - - 2 22 274 413 Equity Ordinary Share Call - - 63 549 667 2 538 Put - - 51 430 787 719 Index Warrant Equity Call - - 1 - - Fund Fund Call - - 1 - - Index Index Call 128 4 815 156 1 078 365 11 165 363 27 313 Put 12 318 210 381 337 13 234 333 6 054 Fund Warrant Fund Mutual Fund Call - - - Put - - - Fund Call 1 - - Total Call 268 6 813 574 14 566 1 008 21 669 353 46 963 Total Put 1 456 35 514 478 62 330 686 16 405 110 10 185 Total Warrants 1 724 42 328 052 76 896 1 694 38 074 463 57 148 SG Issuer Notes to the financial statements As at 31 December 2024 41 # NOTE 15 – RISK MANAGEMENT The Company and severalof its service providers are subsidiaries of theSociété Générale Group and therefore benefit from Société Générale’s internal control systems. # 15.1 Market risk Market risk isthe riskthat changesin marketprices, suchas interest rates,securities prices,and foreignexchange rateswillaffecttheCompany’sincomeor thevalueofitsholding offinancial instruments.Theobjectiveof market risk management is to manage and control market risk exposures within acceptable parameters. The Company issuesNotes andWarrants. The Notesare systematically mirrored withFFS concludedwith Société Générale, with strictly identical characteristics. In the sameway, the Warrantsissued are mirrored with Options concluded with Société Générale, with strictly identicalcharacteristics. The risks associated withthe investment in theNotes and Warrants dependon several factors. Such factors vary depending on the characteristicsof the Notes andWarrants issued, inparticular depending on the underlying, the maturity of the Notes,the Secured / Unsecuredstatus of the Notes, theinterest rates incurred, the volatility of the underlying, etc.. The main risksin relation to investmentsin Notes andWarrants issued bythe Company aredescribed inthe Base Prospectus under the section “Risk Factor“. Becauseofitsstructure(perfectmatchbetweentheassets andtheliabilities), theimpactofanimmediate change of a market parameter would have no consequence on the net profit of the Company. TheCompanyisalsoexposedtostructuralinterestraterisk,namelythroughthefollowingtransactions: reinvestment of available equity by participating interests or loans to the Company’s treasury (SG Luxembourg) with hedged interestrate risk. Thestructural interest raterisk is monitoredvia the sensitivity of theeconomic value of the positions measured through modifiedduration. Modifieddurationiscalculatedbasedonthechangeinthenetpresentvalueofpositionssubsequenttoa 1% change in the rate curve. Exposure monitoring is based on the determination of modified duration over the short (up to one year), medium (one to five years) and long(more than five years) term. Climate and ESG matters have been considered in the fair value of the financial instruments.These are deemed to have a minor impact. # 15.2 Foreign currency risk Foreign currency risk can only arise on financial instruments that are denominated in a currency other than the functionalcurrencyinwhichtheyaremeasured.Translation-relatedrisksarethereforenotincludedinthe assessment of the Company’s exposure to currency risks. Becauseofitsstructure(perfectmatchbetweentheassets andtheliabilities), theimpactofanimmediate change of a foreign exchange rates would have no consequence on the net profit of the Company. Following explanation above, foreign currency risk is strictly limited. Process of control allows to monitor itclosely and to confirm that exposureof the entity to foreign currencyrisk remains in a very conservative limit. SG Issuer Notes to the financial statements As at 31 December 2024 42 # 15.3 Credit risk Credit risk is the risk that a third party will notbe able to meet its contractual obligation. The Companyonly contractsfinancial instruments withSG Luxembourgand SociétéGénérale. Therefore,the creditrisk oftheCompany islimitedtothe creditriskon SGLuxembourgand SociétéGénérale.Should this situation evolve, specific limits would be proposed to limit the creditrisk incurred. As at31 December 2024and 2023,no financial assetswere pastdue norimpaired. NoEstimatedCredit Loss (ECL) was booked for financial assets. Allthe NotesandWarrantsissued bythe Companybenefit fromaguaranteeprovided bySociété Générale, meaning that paymentsin respect ofthe instrumentsissued bythe Company areunconditionally andirrevocably guaranteed by Société Générale (the Guarantor). As at 31 December 2024, therating of Société Générale is: A- from FitchRatings, A from R&I, A from Standard& Poor’s and A1 from Moody’s. # 15.4 Interest rate risk Interest rate risk is therisk that changesin market interest rates may adversely affect thevalue of the assetsand liabilities of the Company. DuetothefinancialinstrumentscontractedbytheCompanywithSociétéGénéraletomirrorthefinancial instruments issued, the Company is not significantlyexposed to interest rate risk. # 15.5 Liquidity risk Liquidity risk isthe risk thatthe Company maybe unable tomeet the paymentobligations associated withits financial liabilities when they fall due. The Company does not face any material liquidityrisk thanks to the perfect replication between thecontractual obligations of: ● The financial instruments issued by the Company;and ● The financial assets replicating the financial instrumentsissued by the Company. SG Issuer Notes to the financial statements As at 31 December 2024 43 Analysis per remaining contractualmaturities As at 31 December 2024, analysis perremaining contractual maturities is as follows: 31.12.2024- EUR' 000 < 3 months From 3 months to 1 year From 1 to 5 years > 5 years Total Cash and cash equivalents 63 575 63 575 Financial assets at fair value through profit or loss - Mandatorily at fair value through profit or loss 4 502 308 7 413 592 17 609 084 19 592 928 49 117 912 - Trading derivatives 17 036 32 857 27 897 160 77 950 Loans and receivables 48 026 200 800 1 000 50 026 Financial liabilities at amortisedcost 69 550 27 071 96 621 Financial liabilities at fair value through profit or loss - Designated at fair value through profit or loss 4 410 064 7 413 257 17 618 922 19 678 019 49 120 262 - Trading derivatives 16 793 33 124 26 979 0 76 896 As at 31 December 2023analysis per remaining contractual maturities is as follows: 31.12.2023 - EUR' 000 < 3 months From 3 months to 1 year From 1 to 5 years > 5 years Total Cash and cash equivalents 42 010 - - - 42 010 Financial assets at fair value through profit or loss - Mandatorily at fair value through profit or loss 4 125 291 6 937 558 19 617 291 20 437 952 51 118 092 - Trading derivatives 7 210 25 313 24 793 - 57 316 Loans and receivables 48 035 200 800 1 000 50 035 Other assets 2 182 233 - - - 2 182 233 Financial liabilities at amortisedcost 331 82 410 - - 82 741 Financial liabilities at fair value through profit or loss - Designated at fair value through profit or loss 4 129 857 6 936 107 19 615 243 20 430 859 51 112 066 - Trading derivatives 6 902 25 246 25 000 - 57 148 SG Issuer Notes to the financial statements As at 31 December 2024 44 # 15.6 Fair Value measurement According to the fair value hierarchy established by IFRS 13, Level 3 (L3)comprises products valued using inputs that are not based on observable market data (referred to as unobservable inputs). Forthese products,fair valueisdetermined usingmodels basedon valuationtechniques commonlyused by marketparticipants tomeasurefinancial instruments,such asdiscountedfuture cashflows forNotesor the Black&Scholesformulaforcertainoptionsandusingvaluationparametersthatreflectcurrentmarket conditions as at thestatement of financialposition date. Thesevaluation models are validatedindependently by the experts from the Market Risk Department of the Group’s Risk Division. Furthermore, the parametersused inthe valuationmodels, whether derivedfrom observable marketdata or not, are checked by the Finance Division of Société Générale, in accordance with the methodologies defined by the Market Risk Department. TheNotesandtherelatedFFSareclassifiedasLevel3whenthevaluationoftheassociatedembedded derivatives (underlying of the Notes) is also basedon unobservable market data. On eachelement ofan identified listof unobservable parameters,it comesto determiningthe uncertaintyof marking, and cross sensitivities with thisuncertainty for a confidence interval of the value of the positions. In parallel, marking the levels of each of theseparameters is collected and reported in the Note. Themethodsfordeterminingthelevelofuncertainty,aswellascalculatingtheconfidenceintervalfrom sensibilities depend on each parameter. Transfersfrom Level 2 to Level3 are determined at theend of each month and occur incase of a modification within a parameter (e.g. no longer linked to the deal, modificationof the observability rule of the parameter). SG Issuer Notes to the financial statements As at 31 December 2024 45 15.6.1EstimatesofLevel3instrumentsandothermostsignificantunobservableinputsasat 31 December 2024 (by type of underlying): Type of underlying Assets Inmillion EUR Liabilities Inmillion EUR Main products Valuation techniques used Significant unobservable inputs Range of unobservable inputs Min & Max Equity / funds 16 297 16 295 Simple and complex derivatives on funds, equities or baskets on stocks Various option models on funds, equities or baskets on stocks Equity volatilities [3% ; 166%] Equity dividends [0.0% ; 11.0%] Unobservable correlations [-200% ; 200%] Hedge funds volatilities N/A Mutual funds volatilities [1.7% ; 26.8%] Rates and Forex 9 241 9 241 Hybrid forex / interest rate or credit / interest rate derivatives Hybrid forex interest rate or credit interest rate option pricing models Correlations [-60% ; 90%] Forex derivatives Forex option pricing models Forex volatilities [1% ; 25%] Interest rate derivatives whose notional is indexed on the prepayment behavior on European collateral pools Prepayement modeling Constant prepayment rates [0.0% ; 20.0%] Inflation instruments and derivatives Inflation pricing models Inflation/ inflation correlations [81% ; 92%] Credit 3 780 3 780 Collateralized Debt Obligations and index tranches Recovery and base correlation projection models Time to default correlations [0% ; 100%] Recovery rate variance for single name underlying [0% ; 100%] Other credit derivatives Credit default models Time to default correlations [0% ; 100%] Quanto correlations [0% ; 100%] Unobservable credit spreads [0bps ; 90.8 bps] Commodity - - Derivatives on commodities baskets Option models on commodities Commodities correlations 0 Total 29 318 29 316 Unobservable inputs add adegree of uncertainty inthe valuation ofLevel 3 instruments.However,by its very nature, and consideringmirror transactions areconcluded withSociété Générale tomirror the financialliabilities issued bythe Company,the Company hasno marketrisk exposure. Theimpact of animmediate change inan unobservable parameter would have no consequence on the net profit or netequity of the Company. Moreover,changes in an unobservable parameter would haveby underlying a minor effect on both assets and liabilities. Finally,the Companyconsiders thatchanges inthe unobservable parameterswould nota materialimpact on the profit or loss of the Company considering themirroring in place for financial instruments (refer to Note 4). SG Issuer Notes to the financial statements As at 31 December 2024 46 15.6.2.Carrying amounts and fair values of assets andliabilities not measured at fair value in the statement of financial position 31.12.2024– EUR’ 000 Carrying amount Fair value Cash and cash equivalents 63 575 63 575 Loans and receivables \* 50 026 50 094 Other assets 292 904 292 904 31.12.2024– EUR’ 000 Carrying amount Fair value Financial liabilities at amortised cost \* 96 621 96 728 Other liabilities 306 067 306 067 Tax liabilities 87 87 \* ForLoans andreceivables andFinancial liabilitiesat amortisedcost, the fairvalues arecalculated by discounting the expected future cash flows under a EUR risk free curve adjusted with Société Générale Group credit spread curve (EUR swap curve from Bloomberg and Société Générale credit spread curve provided by Risk department Paris). SG Issuer Notes to the financial statements As at 31 December 2024 47 31.12.2023- EUR' 000 Carrying amount Fair value Cash and cash equivalents 42 010 42 010 Loans and receivables \* 50 035 49 915 Other assets 2 182 233 2 182 233 Total assets 53 449 686 53 449 566 31.12.2023- EUR' 000 Carrying amount Fair value Financial liabilities at amortised cost \* 82 741 82 744 Other liabilities 2 195 502 2 195 502 Tax liabilities 13 13 Totalliabilities 53 447 470 53 447 473 \* ForLoans andreceivables andFinancial liabilitiesat amortisedcost, the fairvalues arecalculated by discounting the expected future cash flows under a EUR risk free curve adjusted with Société Générale Group credit spread curve (EUR swap curve from Bloomberg and Société Générale credit spread curve provided by Risk department Paris). Determining fair value is dependent on many factorsand can be an estimate of what value maybe obtained in the open market at any point in time. Regarding financial instruments at amortised cost with short term maturity(<1 year), the Company considers the difference between fair value and carrying amount as non-material. Regarding other assets and other liabilities, in consideration of their short term nature, the Company considers the difference between fair value and carrying amount as non-material. SG Issuer Notes to the financial statements As at 31 December 2024 48 15.6.3The fair value hierarchy of IFRS 13 As at 31 December2024, the Company determinedthe fair values ofits financial instrumentson the basis ofthe following hierarchy: 31.12.2024- EUR’ 000 Level 1 Level 2 Level 3 Total Financial assets at fair value through profitor loss - Mandatorily at fair value through profitor loss - 19 815 438 29 302 474 49 117 912 Commodities instruments - 1 546 0 1 546 Credit derivatives/securities - 1 043 704 3 520 322 4 564 026 Equity and index securities - 16 721 749 16 287 602 33 009 351 Foreign exchange instruments/securities - 346 941 1 714 102 2 061 043 Interest rate instruments/securities - 1 545 087 7 527 010 9 072 097 Other financial instruments - 156 411 253 438 409 849 - Trading derivatives - 62 432 15 518 77 950 Equity and Index instruments - 62 134 9 527 71 661 Foreign exchange instruments / securities - 298 5 991 6 289 Financial liabilities at fair valuethrough profit or loss - Designated at fair value through profit or loss - 19 819 729 29 300 533 49 120 262 Commodities instruments - 1 546 0 1 546 Credit derivatives/securities - 1 043 641 3 520 322 4 563 963 Equity and index securities - 16 726 121 16 285 388 33 011 509 Foreign exchange instruments/securities - 346 940 1 714 148 2 061 088 Interest rate instruments/securities - 1 545 087 7 527 237 9 072 324 Other financial instrument - 156 394 253 438 409 832 - Trading derivatives - 61 378 15 518 76 896 Equity and Index instruments - 61 080 9 527 70 607 Foreign exchange instruments / securities - 298 5 991 6 289 SG Issuer Notes to the financial statements As at 31 December 2024 49 As at 31 December2023, the Company determinedthe fair values ofits financial instrumentson the basis ofthe following hierarchy: 31.12.2023 - EUR’ 000 Level 1 Level 2 Level 3 Total Financial assets at fair value through profitor loss - Mandatorily at fair value through profitor loss 24 163 037 26 955 055 51 118 092 Commodities instruments - 5 139 - 5 139 Credit derivatives/securities - 1 095 924 3 611 352 4 707 276 Equity and index securities - 17 428 536 17 146 422 34 574 958 Foreign exchange instruments/securities - 847 056 330 314 1 177 370 Interest rate instruments/securities - 4 652 926 5 582 430 10 235 356 Other financial instruments - 133 456 284 537 417 993 - Trading derivatives 39 589 17 727 57 316 Equity and Index instruments - 34 167 12 848 47 015 Other financial instruments - 5 422 4 879 10 301 Financial liabilities at fair valuethrough profit or loss - Designated at fair value through profit or loss 24 163 037 26 949 029 51 112 066 Commodities instruments - 5 139 - 5 139 Credit derivatives/securities - 1 095 924 3 611 352 4 707 276 Equity and index securities - 17 427 697 17 140 396 34 568 093 Foreign exchange instruments/securities - 847 056 330 314 1 177 370 Interest rate instruments/securities - 4 652 926 5 582 430 10 235 356 Other financial instrument - 134 295 284 537 418 832 -Trading derivatives 39 024 18 124 57 148 Equity and Index instruments - 38 611 13 118 51 729 Other financial instruments - 413 5 006 5 419 SG Issuer Notes to the financial statements As at 31 December 2024 50 The following table describes the variation in Level 3 by financial instruments(in KEUR): Financial assets at fair value through profit or loss Balance at 01.01.2024 Acquisitions (Issuance) Change in fair value Reimbur- sements Transfers from L2 to L3 Transfers from L3 to L2 Balance 31.12.2024 Designated at fair value through P&L 26 955 055 10 659 140 -2 651 637 -3 490 185 707 712 -2 877 611 29 302 474 Equity and index instrument 17 146 422 5 298 314 -2 144 203 -2 579 063 484 522 -1 918 390 16 287 602 Foreign exchange instruments 330 314 1 356 658 -62 099 -45 268 185 318 -50 822 1 714 101 Interest rate instruments 5 582 430 2 843 962 -56 281 -488 354 21 101 -375 847 7 527 011 Credit derivatives/securities 3 611 352 998 985 -306 088 -292 605 16 771 -508 093 3 520 322 Others financial instruments 284 537 161 221 -82 966 -84 895 -24 459 253 438 Trading derivatives 17 727 - 2 394 -4 546 - -57 15 518 Equity and index instruments 12 848 - 1 073 -4 337 - -57 9 527 Foreign exchange instruments - - - - - - - Other financial instruments 4 879 - 1 321 -209 - - 5 991 Financial liabilities at fair value through profit or loss Balance at 01.01.2024 Acquisitions (Issuance) Change in fair value Reimbur- sements Transfers from L2 to L3 Transfers from L3 to L2 Balance 31.12.2024 Designated at fair value through P&L 26 949 028 10 663 226 -2 651 637 -3 490 185 707 712 -2 877 611 29 300 533 Equity and index instrument 17 140 396 5 302 126 -2 144 203 -2 579 063 484 522 -1 918 390 16 285 388 Foreign exchange instruments 330 314 1 356 705 -62 099 -45 268 185 318 -50 822 1 714 148 Interest rate instruments 5 582 429 2 844 189 -56 281 -488 354 21 101 -375 847 7 527 237 Credit derivatives/securities 3 611 352 998 985 -306 088 -292 605 16 771 -508 093 3 520 322 Others financial instruments 284 537 161 221 -82 966 -84 895 -24 459 253 438 Trading derivatives 18 124 - 1 997 -4 546 - -57 15 518 Equity and index instruments 13 118 - 803 -4 337 - -57 9 527 Foreign exchange instruments - - - - - - - Other financial instruments 5 006 - 1 194 -209 - - 5 991 SG Issuer Notes to the financial statements As at 31 December 2024 51 Transfers from Level 3 to Level 2 The consensus dataprovided by external counterpartiesare considered observable ifthe underlying market is liquid and if the prices provided areconfirmed by actual transactions. For high maturities,these consensus data are not observable. This is the case for the implied volatility used for the valuation of options withmaturities of more than five years. However, when the residual maturityof the instrument falls belowfive years, its fair value becomes sensitive to observable parameters. Transfersfrom Level 2 to Level 3 Transfersfrom Level 2 to Level 3 can occur in case of a modificationwithin a parameter (no longer linked to the deal, modification of the observability ruleof the parameter, etc.). # 15.7 Operational risk Operational risk isthe risk ofloss or fraudcaused by defectsor failures in internalprocedures or systems, human error or externalevents, including IT riskand management risk. Particularattention is paidto compliance risk, which receives enhanced monitoring. The Company participates inthe effort to strengthen themanagement and monitoringof operational risk ledby theSociété GénéraleGroup. Thiseffortisguided bythe OperationalRiskDepartment, whichreports tothe Société GénéraleGroup RiskDepartment, andis relayedby differentGroup operationalrisk monitoringunits responsible for implementing thepolicies and directives issued by theSociété Générale Group and monitoring and controlling operational risks. The monitoringarrangement mainlyrelies onfour processessupervised bythe operationalrisk departments: periodic risk andcontrol self-assessment (RCSA),collect of internal data onlosses due to operationalerrors with exhaustive real-time reporting of incidents, pattern analyses, and permanentcontrol system. These procedures are supplemented by a crisis management unitand a business continuity plan. # NOTE 16 – RELATED PARTIES Duringtheyear,theCompany enteredintotransactions withrelatedparties. Thosetransactionsalong with related balances as at 31 December 2024 and2023 are presented below. Related parties are considered to be a party that has theability to control the Companyor exercise significant influenceover the Company in making financial or operational decisions.The Company has a related partyrelationship with SG Luxembourg, itsparent company(SG)andwithitsExecutiveBoardMembers,Supervisory BoardMembersandExecutiveOfficers. As disclosed belowin the table,the Companyentered into transactionswith SGLuxembourg, its parentcompany (SG) and other SG Group entities. The issued Notes are sold to Société Générale as marketmaker,such Notes being expected to be subscribed in fine by thirdparty investors,either for theirown account orvia distribution network. Moreover,all Notes are guaranteed by Société Générale. Also,the Companyborrows securitiesfrom SociétéGénérale, whichserve ascollateral forthe securedNotes issued by the Company. SG Issuer Notes to the financial statements As at 31 December 2024 52 As at 31 December 2024 Société Générale (Parent Company) SG Luxembourg Other SG Group entities EUR’ 000 Cash and cash equivalents 57 309 0 12 Financial assets at fair value through profit or loss - Mandatorily at fair value through profitor loss 49 117 912 - - - Trading derivatives 77 950 - - Loans and receivables - 50 026 - Other assets 292 904 - - Total assets 49 546 075 50 026 12 Financial liabilities at amortised cost 262 93 529 - Financial liabilities at fair value through profit or loss - Designated at fair value through profitor loss\* 140 341 - 312 728 - Trading derivatives\* 36 207 - - Other liabilities 302 977 3 090 - Tax liabilities - - - Totalliabilities 479 787 96 619 312 728 Interest income - 2 018 - Commission income 42 769 - - Total revenues 42 769 2 018 - Interest expenses 0 (29 041) - Personnel expenses (256) - Other operating expenses (4 205) (4 953) - Totalexpenses (4 205) (34 250) - Total comprehensive income for the financial year 38 564 (32 232) - Financial commitments 8 545 530 - - Financial commitments-collateral to be returned 7 251 220 - - \* The financial liabilities at fair value through profit or loss appearing on the statementof financial position are the financial instruments issued by the Company and subscribedby investors, who are not related parties. SG Issuer Notes to the financial statements As at 31 December 2024 53 As at 31 December 2023 Société Générale (Parent Company) SG Luxembourg Other SG Group entities EUR’ 000 Cash and cash equivalents 38 451 2 002 704 Financial assets at fair value through profit or loss - Mandatorily at fair value through profitor loss 51 118 092 - - - Trading derivatives 57 316 - - Loans and receivables - 50 035 - Other assets 2 182 232 - - Total assets 53 396 091 52 037 704 Financial liabilities at amortised cost 294 444 84 679 314 875 Financial liabilities at fair value through profit or loss - - Designated at fair value throughprofit or loss\* - - - - - Trading derivatives\* - - - Other liabilities 256 240 2 108 - Tax liabilities - - - Totalliabilities 550 684 86 787 314 875 Interest income - 1 745 - Commission income 47 931 - - Total revenues 47 931 1 745 - Interest expenses - (38 331) - Personnel expenses - (303) - Other operating charges (1 049) (5 468) - Totalexpenses (1 049) (44 102) - Total comprehensive income for the financial year 46 882 (42 357) - Financial commitments 4 721 740 - - - Financial commitments-collateral to be returned 5 865 142 - - \* The financial liabilitiesat fairvalue throughprofit or lossappearing onthe statementof financial positionare the financial instruments issued by the Company and subscribedby investors, who are not related parties. SG Issuer Notes to the financial statements As at 31 December 2024 54 # NOTE 17 – REMUNERATION, ADVANCES AND LOANS GRANTED TO MEMBERS OF THE # ADMINISTRATIVE OR SUPERVISORY BODY The independent director of the Company earned aremuneration of EUR28 000 for his services related tothe year ended 31 December 2024 (31 December2023: EUR 28 000). Asat31December2024and2023,nootherpayment,advanceorloansweregiventomembersofthe administrative or supervisory body. # NOTE 18 – INFORMATION ON LITIGATIONS During the year ended 31 December 2020, SG Issuer,as the Issuer of Notes linked to the creditrisk of a French corporate,and SociétéGénérale, asthe Guarantor,were broughtbefore theCourts ofParis (alongsideother French financial institutions)by endinvestors to obtain compensationfor the financialloss they sufferedon their investmentinthesesecurities.TheFrenchcorporatewasthesubjectofa“safeguardprocedure”,which constitutes acredit eventunder the termsof the Noteswhich had astrong impact onthe value ofthe Notes. These investors rely on unfounded allegations accordingto which SG Issuerand Société Généralewere aware of the difficulties ofthe French corporatewhen setting upand marketingthese Notes andthat indoing so, they failedtomeettheirregulatoryobligations(toactinanhonest,fairandprofessionalmanner,toprovide information on the product risks and to determine the suitability of the Notesfor retail investors). On 27 July 2021, theCompany received a new letter from endinvestors in order to obtain compensation for the financial lossthey sufferedon theirinvestment insecurities issued bythe Company.This letterrelates tothe same litigation described above. For this litigation, along withany other litigation relating to securitiesissued by SG Issuer, SG Issuer isentitled to an indemnification by Société Générale in respectof any sum due by SGIssuer regarding potential damages or attorneys’fees. No change on this case compared to 31 December 2023financial statements. # NOTE 19 – CAPITAL MANAGEMENT In considerationof the information mentionedin the previous notes,the exposure ofthe Company to various risks is limited thanks to the mirroring that is in place for thefinancial instruments. The Company does not have any loan covenants. For dividends, please refer to the Note 8.2.2. # NOTE 20 – USE OF DERIVATIVES TheCompany usesderivatives tomirror theinstruments issued. Thesederivatives aremeasured atfair value through profit or loss. The Company does not apply hedge accounting. For further details on the derivatives, please refer to Notes 4.1 and 15. SG Issuer Notes to the financial statements As at 31 December 2024 55 # NOTE 21 - SIGNIFICANT CHANGES IN THE CURRENT PERIOD There are nosignificant events in the current periodthat may havean impact on the financial statementsthat would not be included in the preceding notes. # NOTE 22 – SUBSEQUENT EVENTS Following thedecision ofthe Extraordinary GeneralMeeting of26 March 2025, the Companyhas changed its corporate address to 10, Porte de France, L-4360 Esch-sur-Alzette, Luxembourg. Apart, fromthe abovementioneditem, therewas noother subsequentevents whichcould havea significant impact on the financial information as at 31 December2024.