BPCE - 2020 Universal Registration Document

5

FINANCIAL REPORT

IFRS CONSOLIDATED FINANCIAL STATEMENTS OF GROUPE BPCE AS AT DECEMBER 31, 2020

Summarized financial data for non-material joint ventures and companies under significant influence at December 31, 2020 is as follows:

Fiscal year 2020

Fiscal year 2019

in millions of euros

Value of investments in associates

761

784

Total amount of share in: Net income

1

37 (9) 28

Gains and losses recognized directly in other comprehensive income

(1) (1)

COMPREHENSIVE INCOME

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

12.4.2

SHARE IN NET INCOME OF ASSOCIATES

Fiscal year 2020

Fiscal year 2019

in millions of euros

CNP Assurances (group) EDF Investment Group

217

227

10

10 ///

Coface (1)(2)

(47)

Socram Banque (3)

(9)

(25)

Banque Calédonienne d’Investissement

9

15 33

Other (4)

(3)

Financial sector companies

176

260

Other

4 4

5 5

Non-financial companies

SHARE IN NET INCOME OF ASSOCIATES

180

265

Coface has been consolidated under the equity method since January 1, 2020 (see Note 1.3). (1) Net income shown for Coface includes the impairment of -€57 million representing the Group’s equity value. (2) Net income shown for Socram Banque includes the impairment of -€10 million representing the Group’s equity value. (3) Net income from other entities includes an impairment of -€16 million on Adir. (4)

IMPAIRMENT TESTS ON ASSOCIATES 12.4.3 At December 31, 2020, CNP Assurances group was consolidated using the equity method based on the Group’s 16.11% holding. Value in use applied when testing for impairment is based mainly on Market Consistent Embedded Value (MCEV), i.e. the sum of restated net asset value, present value of future profits on existing insurance policies, less cost of capital, without taking new business into account. BPCE's share is based on the latest available MCEV published by CNP at the reporting date. At December 31, 2020, this test led to no impairment of CNP's equity accounted value.

The same is true of controlled structured entities that are not consolidated due to holding threshold reasons. This includes all structured entities in which Groupe BPCE 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 managementof 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 relationships, contractual or not, that expose Groupe BPCE 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 relationships, such as financing, short-term credit facilities, credit enhancement, the 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 Groupe BPCE • 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 Groupe BPCE with structured entities or classically governed entities alike. The main kinds of current transactions are:

12.5

INTERESTS IN NON-CONSOLIDATED STRUCTURED ENTITIES NATURE OF INTERESTS IN NON-CONSOLIDATED

12.5.1

STRUCTURED ENTITIES A non-consolidatedstructured 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.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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