BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

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

termination benefits are granted to employees on • termination of their employment contract before the normal retirement date, either as a result of a decision by the Group to terminate a contract or a decision by an employee to terminate a contract in exchange for a severance package. They are covered by a provision. Termination benefits that are not expected to be paid within the 12 months following the balance sheet date are discounted to present value. 8.1 Payroll costs include all personnel expenses and the associated social security contributions and taxes. They include expenses for employee benefits and share-based payments. PAYROLL COSTS

Share-based payments include payments in equity instruments or cash where the amount of the cash payment is indexed to the share price. A personnel expense is recorded for an amount equal to the fair value of the benefit awarded, spread over the vesting period.

Information on employees by category is presented in Chapter 2, “Non-financial performance disclosures.”

Fiscal year 2019

Fiscal year 2018

in millions of euros

Wages and salaries

(3,675)

(3,467)

Expenses for defined-benefit and defined-contribution pension plans and other long-term employee benefits

(162)

(214)

Other social security costs and payroll-based taxes (1)

(1,150)

(1,344)

Profit sharing and incentive schemes

(207)

(197)

TOTAL PAYROLL COSTS (5,221) The CICE (tax credit for competitiveness and employment) deducted from payroll costs amounted to €11 million in respect of fiscal year 2018. It was eliminated and converted into (1) a reduction in social security charges at January 1, 2019. (5,194)

EMPLOYEE BENEFITS 8.2 BPCE SA group grants its staff a variety of employee benefits: pensions and other post-employment benefits such as retirement indemnities and other benefits granted to retirees; • other benefits such as long-service awards and other long-term employee benefits. • ANALYSIS OF EMPLOYEE-RELATED ASSETS AND LIABILITIES RECORDED IN THE BALANCE SHEET 8.2.1

Post-employment defined-benefit plans

Other long-term employee benefits

Supplementary pension benefits and other

End-of-career awards

Long-service awards

Other

12/31/2019

12/31/2018

in millions of euros

Actuarial liabilities

1,072 (790)

349

76

141

1,638 (944)

1,478 (744) (194)

Fair value of plan assets

(154)

Fair value of reimbursement rights Effect of ceiling on plan assets

(43)

(28)

(71)

18

18

23

Net amount reported on the balance sheet

257 300

167 195

76 76

141 141

641 712

563 757 194

Employee benefit commitments recorded in the balance sheet

Plan assets recorded in the balance sheet (1)

43

28

71

Mostly recorded on the assets side of the balance sheet under “Accrued income and other assets”. (1)

When these plans are funded by assets meeting the definition of plan assets, the amount of the provision corresponds to actuarial liabilities less the fair value of these assets. Plan assets no longer meeting the definition of plan assets are recorded under assets.

Actuarial liabilities represent the Group’s obligation in respect of beneficiaries. They are calculated by independent actuaries using the projected unit credit method based on demographic and financial assumptions that are reviewed on a regular basis and at least once a year.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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