BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

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

RELATED PARTY TRANSACTIONS 12.3 For Groupe BPCE, related parties are considered to be all consolidated companies, including companies carried under the equity method, and the Group’s key management personnel. The Social Housing Companies in which the Group is the sole major shareholder are also covered. COMPANIES All intercompany transactions carried out during the period and balances outstanding at the end of the period with fully consolidated companies are eliminated in full on consolidation. The statement below only provides data on intercompany transactions concerning: companies over which the Group exercises joint control (joint • operations) in respect of the non-eliminated portion: no significant transactions were identified in this category; entities over which the Group exercises significant influence • and which are equity-accounted (associates). The significant transactions that have been identified were carried out with CNP Assurances group: under a sales agreement, the Group received commission – income amounting to €1,100 million in 2019 (€1,033 million in 2018), for the management of the Group’s pension plans, – reimbursement rights of €49 million were recorded to cover post-employment benefits (see Note 8.2.2), under a partnership agreement that took effect on – January 1, 2016, a cash deposit of €11.4 billion was recorded under “Loans and receivables due from customers” (see Note 9.1.1.4). This cash deposit is backed TRANSACTIONS WITH CONSOLIDATED 12.3.1

by technical reserves recognized for an identical amount under liabilities in the balance sheet representing commitments to insured parties. Insurance expenses and income relating to reinsured policies are recorded as “Income and expenses from other activities” (see Note 4.6). A list of fully consolidated subsidiaries is presented in Note 18, “Scope of consolidation”. 12.3.2 The Group’s company directors are the members of the Management Board and Supervisory Board of BPCE. The short-term benefits, post-employment benefits, long-term benefits and termination benefits of BPCE’s company directors are described in the “Pay, benefits in kind, loans, guarantees and attendance fees received by BPCE company directors” section of Chapter 3 of the registration document, on Corporate Governance. Short-term employee benefits Short-term benefits paid out to the Group’s company directors amounted to €7 million in 2019 ( vs. €9 million in 2018). These include remuneration, directors’ attendance fees and benefits paid to members of the Management Board and Supervisory Board. Post-employment benefit commitments, long-term benefits and termination benefits Post-employment benefit commitments, long-term benefits and termination benefits of the Group’s company directors are described in the Chapter 3 on Corporate Governance. The amount provisioned by BPCE SA group in respect of retirement bonuses came to €3 million at December 31, 2019 (€2 million at December 31, 2018). TRANSACTIONS WITH COMPANY DIRECTORS

12.4

PARTNERSHIPS AND ASSOCIATES

Accounting principles: See Note 3

INVESTMENTS IN ASSOCIATES Partnerships and other associates 12.4.1.1 The Group’s main investments in joint ventures and associates are as follows: 12.4.1

12/31/2019

12/31/2018

in millions of euros

CNP Assurances (group) (1)

2,821

2,561

Socram Banque

49

75

EDF Investments Group (EIG)

520 252

521 239

Other

Financial sector companies

3,642

3,396

Other

127 127

127 127

Non-financial companies

SHARE IN NET INCOME OF ASSOCIATES 3,523 Application of IFRS 9 (with IFRS 4 amendment) postponed to January 1, 2022. IFRS 9 Financial Instruments was published on July 24, 2014 and approved by the European Union (1) on November 22, 2016. Application of this standard became mandatory on January 1, 2018. However, the Group opted to postpone application of the standard to January 1, 2022. The standard, which replaces IAS 39 Financial Instruments: Recognition and Measurement, sets out the accounting and disclosure principles applicable to financial assets and financial liabilities. The complete version of IFRS 9 includes the three phases that comprised the draft version, namely classification and measurement, impairment, and hedge accounting. Macro-hedge accounting, which is being covered separately by the IASB, has not been finalized. A discussion paper was published on this topic on April 17, 2014. 3,769

476

UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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