BPCE - 2018 Registration document

5 FINANCIAL REPORT

IFRS Consolidated Financial Statements of BPCE SA group as at December 31, 2018

This transaction generated goodwill of € 11 million as at December 31, 2018, as determined using the partial goodwill method. Natixis also committed to buy out minority shareholders’ shares for € 15 million. Acquisition of Alter CE (Comiteo) by Natixis Furthermore, Natixis completed the acquisition of Alter CE (Comiteo), a company specializing in online services for works councils. Natixis holds a 70% stake in Alter CE, exercises control over it within the meaning of IFRS 10, and fully consolidates this entity. This transaction generated goodwill of € 20 million as at December 31, 2018, as determined using the partial goodwill method. Natixis also holds put options on minority interests in the amount of € 9 million. Acquisition of MV Crédit France by Natixis Lastly, Natixis completed the acquisition of MV Crédit, a European credit specialist focused on private debt. MV Credit became a new affiliate of Natixis Investment Managers, providing investors with access to a wide range of expertise in private equity, private debt, real estate and infrastructure. Natixis owns 100% of the capital of MV Crédit, exercises control over it within the meaning of IFRS 10, and fully consolidates this entity. This transaction generated goodwill of € 123 million as at December 31, 2018. The Group lost significant influence over DocOne, a printing subsidiary, and its parent Nefer, following the disposal of some of its shares in Q3 2018. Mergers and full transfers of assets and liabilities In the fourth quarter of 2018, BPCE Maroc Immobilier was absorbed by BPCE Maroc in a total transfer of assets and liabilities with retroactive effect from January 1, 2018. On April 24, 2018, ECUFONCIER was absorbed by BPCE SA group in a total transfer of assets and liabilities. Other changes in scope Deconsolidated entities

CHANGES IN SCOPE OF CONSOLIDATION DURING FISCAL YEAR 2018 The main changes in the scope of consolidation during 2018 are presented below: Changes in the ownership interest in subsidiaries at December 31, 2018 (with no impact on control) Change in the Group’s ownership interest in Natixis Following a number of transactions in its own shares, the Group’s stake in Natixis stood at 70.78% at December 31, 2018 ( versus 71.02% at December 31, 2017). The impact of this change on equity attributable to equity holders of the parent was not material. Acquisition of a controlling interest in subsidiaries Finalization of the acquisition of Fenchurch Advisory Partners by Natixis Natixis has completed the acquisition of Fenchurch Advisory Partners (“Fenchurch”), a specialist corporate finance advisory firm exclusively focused on the financial services sector. Natixis owns 51% of the capital of Fenchurch, exercises control over it within the meaning of IFRS 10, and fully consolidates this entity. This transaction generated goodwill of € 37 million as at December 31, 2018, as determined using the partial goodwill method. Natixis also committed to buy out minority shareholders’ shares for € 28 million. Acquisition of Vermilion Partners by Natixis Natixis also completed the acquisition of the Vermilion Partners group, a specialist in cross-border transactions involving China and in advising on both inbound and outbound M&A transactions. Natixis holds a 51% stake in Vermilion partners. Natixis exercises control over this group within the meaning of IFRS 10 and fully consolidates it. 3.3

GOODWILL 3.4 3.4.1 Value of goodwill Goodwill related to operations for the financial year is analyzed in respect of Note 3.4 on “Changes in scope of consolidation”.

Fiscal year 2018

Fiscal year 2017

in millions of euros

Opening net value

3,728

3,803

190 (27) (16) (35)

193

Acquisitions (1) Disposals Impairment

(66)

Reclassifications and other changes Foreign exchange rate adjustments

66

(202)

CLOSING NET VALUE 3,728 The main acquisitions during the period that led to the recognition of goodwill by Natixis are as follows: Fenchurch Partners +€37 million and Vermilion Partners +€11 million for Corporate (1) & Investment Banking; Alter CE (Comiteo) +€20 million for Retail Banking and Insurance; MV Crédit +€123 million for Asset & Wealth Management. 3,906

At December 31, 2018, gross goodwill came to € 4,292 million and total impairment came to - € 386 million. Certain goodwill items recognized in the United States give rise to tax amortization over 15 years leading to a difference between the

carrying amount of the goodwill and its tax base. This difference in treatment generated a deferred tax liability of € 336 million at December 31, 2018, compared with € 311 million at December 31,

2017 (see Note 11.2).

436

Registration document 2018