BPCE - 2019 Universal Registration Document

FINANCIAL REPORT

IFRS CONSOLIDATED FINANCIAL STATEMENTS OF GROUPE BPCE AS AT DECEMBER 31, 2019

Breakdown of goodwill

Carrying amount

12/31/2019

12/31/2018

in millions of euros

Regional Banks (1) Banque BCP France

633

633

42

42

Other

8

8

Retail Banking BPCE International

683

683

6

Oney Bank (2) Fidor Bank AG

170

82 88

Other Networks

170

Financial Solutions and Expertise (3)

20 39

Insurance

39

Equity interests (Coface)

282

281 148

Specialized Financial Services (3)

137

Payments (3)(4)

Retail Banking and Insurance Asset & Wealth Management (5) Corporate & Investment Banking (6)

1,331 3,190

1,239 3,121

144

129

TOTAL GOODWILL 4,489 Regional banks: Banque de Savoie, goodwill carried by Banque Populaire du Sud (transfer of Banque Dupuy, de Parseval’s and Banque de Marze’s goodwill, post-merger), (1) goodwill carried by Banque Populaire Aquitaine Centre Atlantique (transfer of CCSO – Pelletier’s goodwill, post-merger) and goodwill carried by Banque Populaire Méditerranée (transfer o

5

IMPAIRMENT TESTS 3.5.2 All items of goodwill are impaired, based on the value in use of the cash-generating units (CGUs) to which they have been allocated. For the Coface CGU, a listed entity since June 2014, which is not one of Natixis’ core businesses and which is managed on an asset basis, as in previous years, value in use was supplemented by other approaches using market data including market multiples, stock market prices and brokers’ target prices. An average valuation was determined by weighting the different approaches, with the respective weighting of each approach unchanged compared with the previous fiscal year. Subsequent to the sale of the retail banking entities to BPCE, the goodwill associated with these entities and allocated to the former SFS CGU is no longer recorded in Natixis’ balance sheet. At December 31, 2019, the former SFS CGU was split into three CGUs: the “Payments” CGU, the “Asset & Wealth Management” CGU (in respect of the Employee savings

business) and the “Corporate & Investment Banking” CGU (in respect of the Film and Audiovisual Financing business). The goodwill associated with entities not transferred to BPCE was evenly split among these three CGUs. In the specific case of certain subsidiaries owned by four Banques Populaires (Banque Populaire Auvergne Rhône Alpes, Banque Populaire Méditerranée, Banque Populaire du Sud and BP Aquitaine Centre Atlantique), goodwill was reallocated to the combined CGU, and the financial assumptions presented by combined CGU are averages of the assumptions applied to their constituent CGUs. Key assumptions used to determine recoverable value Value in use was primarily determined based on the estimated present value of the CGU’s future cash flows ( i.e. the Discounted Cash Flows (DCF) method) under medium-term plans drawn up for the purposes of the Group’s budget process.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE