UNION FIN.FRANCE : 2012 Results. UFF posts consolidated net profits of 15.2 M€ and net subscriptions of 49 M€.

P A R I S , 1 8 T H F E B R U A R Y 2 0 1 3

2012 Results

PRESS RELEASE

UFF posts consolidated net profits of 15.2 M€

and net subscriptions of 49 M€

• Sound business base, thanks to a well adapted range of investment products, particularly in the life assurance activity

• Net subscriptions positive

• Assets under management of 7.2 billion euros, up 9% on last year

• An expanding network of financial advisors

• Consolidated net profits of 15.2 million euros, down on last year due to a decrease in commissions, in spite of strict cost control

• Dividend of 1 € per share for the financial year 2012

* re-calculated to include the impact of the application of IAS Norm 19, revised in 2012

Sound business base

Despite investors' 'wait and see' attitude, which is linked to the economic context and uncertainty around taxes, client investments into UFF in 2012 are close to the figure for
2011 (-1.5%), but with varied investment performances depending on the activity.

• Sales of real estate units show good stability (higher volume but lower average prices), while the ending of the Scellier fiscal advantage has led to a decrease in sales on the rental market, after several years of strong growth.

It is worth remembering that UFF considers real estate as a product for wealth management , and not as a fiscal opportunity ; UFF selects its real estate assets for their intrinsic qualities, their location, and their rental return on investment.

UFF's mass affluent clients show a growing interest* in this investment sector, particularly for serviced properties (student halls of residence, senior residences, business premises, and tourist residences) which accounted for 54% of sales in 2012.

*Source : Observatoire UFF -IFOP of wealth creation clients -2011 et 2012

• Uneven activity in Real Estate Investment Trusts (REITs), the increase in subscriptions into income-generating REITs, which are invested in professional premises, have not offset the decrease in subscriptions into Scellier REITs.

• Net increase in life assurance, underpinned by innovative products, attractive returns on Euro based funds, and good balance of units of account on offer, particularly funds invested in corporate bonds.

• Decrease in securities investments made by private investors, although corporate investors have benefited from the launch of a 3-year bond product which is highly suited to their needs.

Net subscriptions of 49 M€

The strength of the business base, and a decrease in redemptions, has enabled UFF to achieve net subscriptions of 49 M€ in 2012.The retention rate for assets for this period stands at 92.4% compared with 92.2% in 2011.
Thanks to this level of net subscriptions, and the positive impact of the asset base value, assets under management increased by 613 M€ between 31st December 2011 and 31st December
2012, and now stand at 7.2 billion euros.

Net Banking Income of 143.5 M€

Net Banking Income in millions of euros 2010 2011 2012

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Banking Income at 31 December, of which

- Placement commissions

- Management commissions

- Profits net of interest and other

Change

2012/2011

• Placement commissions for 2012 stand at 56.5 M€ (-18% compared with 2011); this decrease, which is out of line with the stability of the business base, is differentiated according to the underlying product.

The 26% decrease in real estate placement commissions is a result of the decrease in
2011 activity following two years of high growth under the Scellier fiscal framework. Indeed, the driver in calculating commissions is the signature of the conveyancer, which lags behind the registration of the sale by UFF.
The decrease in REITs commissions (-16%) reflects the decrease in sales in this activity. The decrease in other products (-11%), should be contextualised with a slightly increased
figure for the underlying activity ; the decrease stems from a decrease in the entry
commissions for a mix of products which are more oriented towards less risky investments.

• Management commissions (85.7 M€) are down 5% although the level of average assets for

2012 has remained stable compared with 2011. Indeed, in 2012, the structure of the assets
continued to change, with an increase in the proportion of Euro fund investments and REITs, at the expense of assets invested in investment trusts, which are more risky, but yield a higher return.
These account for 70% of average assets in 2012 compared with 74% in 2011.
Net Banking Income for 2012 reached 143.5 M€, a decrease of 11% compared with 2012.

Operating costs are stable at 120.8 M€

Staff costs for the network of financial advisors has risen by 1% to 69.4 M€, due to UFF's investment in its commercial network.

• The rise in recruitments, the effectiveness of the training and integration process for newly-recruited financial advisors, as well as the satisfactory rate of staff turnover, has enabled UFF's financial advisor network to grow by 34 new colleagues to reach a total head-count of 897 at the end of 2012. For the first time in a number of years, UFF's network of financial advisors who have completed their training cycle and are, therefore, completely productive, has also risen (+36).

The other operating costs, (administrative staff and general overheads), have decreased by 3%. This decrease would stand at 5% if we were to deduct the investment of 1.2 ME made to set up a new UFF subsidiary : CGP Entrepreneurs (Entrepreneurial Financial Advisors), aimed at the
CGP Independent market.

Consolidated net profits of 15.2 M€

The decrease in net banking income, together with the controlling of costs, has led to a decrease in operating profits : 22.7 M€, compared with 38.8 M€ in 2011.

Consolidated net profits has followed the same trend : 15.2 M€ compared with 25.3 M€ in 2011.
The consolidated net position, after approved dividend allocation for 2012, will stand at 83.8 M€. This shows a good level of liquidity for the group, since the amount corresponds to three times the regulatory minimum required by Bâle II.

Information about the holding company

Due to the operational integration of the Group's activities, the figures are difficult to interpret in isolation, and the net profit for 2012 stands at 31.5 M€.
The Board of Directors meeting, which took place on 14th February 2013, approved the accounts and proposes to the Annual General Meeting of shareholders, which will take place on
16th May 2013, a dividend payment of 1.0 € per share ; this is above the consolidated net profit per share, which is 0.94 €.
Subject to approval by the Annual General Meeting of shareholders, and taking into consideration an interim dividend payment of 0.35 € made on 8th November 2012, the dividend balance of 0.65 € per share will be paid on 23rd May 2013.
The net position, after the dividend payments for 2012, will stand at 137.7 M€ (compared with a figure of 122.1 M€ for last year).
An audit of the consolidated accounts has been conducted by our firm of auditors. The audit certification will be awarded following the verification of our management report and after other compulsory procedures have been carried out.

Transactions with related parties

Aviva France, holding company of Union Financière de France Banque, is considered as a 'related party'. The operational relationship between subsidiaries of the Union Financière de France
Group and the Aviva France Group concerns life assurance, the management of certain investment trusts, and IT services.

Outlook

In spite of a satisfactory level of business and a positive figure for net subscriptions, 2012, as
2011, shows a decrease in UFF's profitability.
Faced with a market situation which makes growth increasingly difficult, and where margins are in decline, UFF has undertaken in 2012, and will continue to undertake in 2013, actions which are aimed at creating a sound basis for growth and profitability:
Growth of the UFF financial advisors network, and, therefore, development of future subscriptions
Rise in life insurance subscriptions into units of account adapted to the conditions of the market

Launch, at the beginning of 2013, of products aimed at investors looking for performance, and willing to take calculated and controlled risks
Adaptation of the real estate offer to changes in the fiscal environment (Duflot framework)
2013 will see the operational start-up of the CGP Entrepreneurs (CGPE : Entrepreneurial Financial Advisors) subsidiary in the second quarter. CGPE, set up in June 2012, is aimed at the CGP Independent market. Its objective is to widen UFF's distribution capacity and therefore create leverage for the coming years.

Union Financière de France in brief

Set up in 1968, Union Financière de France is a bank which specialises in advice on the creation and management of wealth, and which offers products and services for individual and corporate clients. UFF's range of products includes real estate, securities, and life assurance, as well as a wide range of products aimed at companies (retirement savings plans, employee savings plans, medium term cash management, etc.).

Union Financière de France enjoys a dense network of financial advisors and support staff which is present throughout France. The network consists of 1180 employees, of whom almost 900 are financial advisors.

On 31st December 2012, Union Financière de France had 137 000 clients, of whom 116 000 were individual clients and 21 000 were corporate clients.

Union Financière de France is listed on Euronext Paris Compartiment B Code Euroclear 3454

Code ISIN FR0000034548.

For further information, please contact :

UFF	UFF	Golin Harris
Martine Simon Claudel	Hélène Sada-Sulim	Coralie Ménard
Managing Director	Head of Public Relations	Press Officer
Tel : [phone]	Tel : [phone]	Tel : [phone]