BPCE - 2018 Registration document

5 FINANCIAL REPORT

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

Summarized financial data for non-material joint ventures and companies under significant influence at December 31, 2018 is as follows:

Fiscal year 2018

Fiscal year 2017

in millions of euros

Value of investments in associates

366

158

Total amount of share in: Net income

14

21

Gains and losses recognized directly in other comprehensive income

1

COMPREHENSIVE INCOME

14

22

12.4.1.3 Nature and scope of major restrictions BPCE SA group has not been faced with any major restrictions relating to interests held in associates and joint ventures.

Share in net income of associates 12.4.2

Fiscal year 2018

Fiscal year 2017

in millions of euros

CNP Assurances (group) EDF Investment Group

220

207

12

10

Socram Banque

2 8

2

Other

16

Financial sector companies Non-financial companies

242

235

6

6

TOTAL INVESTMENTS IN ASSOCIATES

248

241

INTERESTS IN NON-CONSOLIDATED 12.5 STRUCTURED ENTITIES Nature of interests in non-consolidated structured 12.5.1 entities A non-consolidated structured entity is a structured entity that is not controlled and is therefore not accounted for using the full consolidation method. As a result, the interests held in a joint venture or associate which is classed as a structured entity falls within the scope of this note. The same is true of controlled structured entities that are not consolidated due to threshold reasons. This includes all structured entities in which BPCE SA group holds an interest and intervenes in one or more of the following capacities: originator/structurer/arranger; ● placement agent; ● manager; ● in any other capacity that has a major impact on the structuring or ● management of the transaction ( e.g. provision of financing, guarantees or structuring derivatives, tax investor, major investor, etc.). An interest in an entity corresponds to all types of relationship, contractual or not, that exposes BPCE SA group to a risk of fluctuations in returns relating to the entity’s performance. Interests in another entity may be evidenced by, among others, the holding of equity instruments or debt securities, as well as, by other types of relationship, such as financing, short-term credit facilities, credit enhancement, provision of guarantees or structured derivatives.

As a result, the following are not included in the scope of this note: structured entities which are associated with BPCE SA group ● through a current transaction alone. This corresponds to an unstructured financial instrument which generally does not have a material impact on the variability of the structured entity’s returns and which could be concluded by BPCE SA group with structured entities or classically governed entities alike. The main kinds of current transactions are: plain vanilla fixed-income, foreign exchange and other - underlying derivatives, as well as securities lending/borrowing and repurchase agreement transactions, plain vanilla guarantees and financing granted to family - non-trading real estate companies (SCI) or to certain holdings; external structured entities in which BPCE SA group simply acts as ● an investor. These notably include: investments in external UCITS that the Group does not manage, ● except for those in which the Group owns almost all the shares; a limited scope of interests held in securitization vehicles (exposures ● on these funds are included in the information published in Chapter 3 “Risk Management – Securitizations”); interests held in external real estate funds or private equity funds ● in which Groupe BPCE acts as a simple minority investor.

522

Registration document 2018