BPCE - 2019 Universal Registration Document

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FINANCIAL REPORT

STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

JUSTIFICATION OF ASSESSMENTS - KEY AUDIT MATTERS In accordance with the requirements of Articles L. 823-9 and R. 823-7 of the French Commercial Code ( Code de commerce ) relating to the justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement that, in our professional judgment, were of most significance in our audit of the financial statements of the current period, as well as how we addressed those risks. These matters were addressed in the context of our audit of the financial statements as a whole, approved under the circumstances described above, and in forming our opinion thereon, and we do not provide a separate opinion on specific items of the financial statements. Valuation of associates, equity interests and long-term investments

Risk identified and main judgments

Our response

As of December 31, 2019, associates, equity interests and long-term investments recognized in BPCE SA’s financial statements amounted to €25,421 million. As indicated in note 4.4 to the financial statements, they are recognized at their acquisition cost and impaired on the basis of their value in use. Estimating the value in use depends on the discounting of the estimated future cash flows as they result from medium-term plans drawn up by the entities concerned and assessed by the Group. We deemed the correct measurement of equity interests to be a key audit matter, given the areas of judgment inherent to structuring assumptions used, in particular for determining economic scenarios, financial forecasts or discount rates.

To assess the reasonableness of the estimated value in use of equity interests, with the guidance of our experts we verified that the estimated values determined by management were based on an appropriate measurement method applied to correctly documented quantified data. Depending on the securities in question, our audit work consisted in: examining the assumptions and inputs used by comparing • them to external sources; examining the reasonableness of the medium-term plans used • for each entity in question, which entailed: comparing these plans with the Group’s strategic plans – validated by the entities’ management bodies (Supervisory Board or Board of Directors), evaluating the consistency and reliability of the main – assumptions used to develop the plans, particularly with regard to past years’ financial projections and actual past performance, analyzing sensitivity to different valuation inputs – (shareholders’ equity, discount rates, etc.).

III. Specific verifications

We have also performed, in accordance with professional standards applicable in France, the specific verifications required by laws and regulations.

INFORMATION GIVEN IN THE MANAGEMENT REPORT AND IN THE OTHER DOCUMENTS WITH RESPECT TO THE FINANCIAL POSITION AND THE FINANCIAL STATEMENTS PROVIDED TO THE SHAREHOLDERS We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in the management report of the Management Board and in the other documents with respect to the financial position and the financial statements provided to the Shareholders. With regard to events that occurred and elements known after the closing date of the financial statements and the date management report was available, relating to the effects of the Covid-19 crisis, Management Board informed us that they would communicate directly to the General Meeting called to approve the financial statements. With respect to the fair presentation and the consistency with the financial statements of the information relating to the payment terms required by Article D. 441-4 of the French Commercial Code, we have the following observation: as indicated in the management report, the information does not include banking operations and related operations, as the Company considers these are not within the scope of the information to be produced. REPORT ON CORPORATE GOVERNANCE We attest that the Supervisory Board’s report on corporate governance sets out the information required by Articles L. 225-37-3 and L. 225-37-4 of the French Commercial Code.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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