BPCE - 2020 Universal Registration Document

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FINANCIAL REPORT

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

on an entity’s acquisition date, non-controlling interests may • be valued: either at fair value (method resulting in the allocation of a – share of the goodwill to non-controlling interests), or at the share in the fair value of the identifiable assets and – liabilities of the entity acquired (method similar to that applicable to transactions prior to December 31, 2009). The choice between these two methodsmust be made for each business combination. Whatever method is chosen when the acquisition is made, increases in the percentage of interest in an entity already controlled are systematically recognized in capital: when an entity is acquired, any share previously held by the • Group must be revalued at fair value through profit or loss. Consequently, in the event of a step acquisition, goodwill is determined by referring to the fair value at the acquisition date; and when the Group loses control of a consolidated company, any • share previously held by the Group must be revalued at fair value through profit or loss. All business combinations that occurred prior to the revisions of IFRS 3 and IAS 27 are accounted for by applying the purchase method, except business combinations involving two or more mutual insurers or entities under joint control, as these transactions were explicitly excluded from the scope of application. The Group has entered into commitments with minority shareholders of certain fully consolidated Group subsidiaries to buy out their shares. These buyback commitments are optional commitments (sales of put options). The exercise price for these options may be an amount fixed contractually, or may be established according to a calculation formula defined upon the acquisition of the subsidiary’s securities and taking into account its future activity, or may be set as the fair value of the subsidiary’s securities on the day on which the options are exercised. For accounting purposes, these commitments are treated as follows: pursuant to the provisions of IAS 32, the Group recognizes a • financial liability with respect to the put options sold to minority shareholders in fully-consolidated entities. This liability is initially recognized at the discounted value of the put option exercise price under “Other liabilities”; the obligation to record a liability even though the put options • are not exercisedmeans, for purposes of consistency, that the same accounting treatment as that for transactions related to non-controlling interests must be applied. As a result, the corresponding entry for this liability is deducted from “Non-controlling interests” underlying the options and the balance is deducted from “Retained earnings attributable to equity holders of the parent”; subsequent changes in this liability relating to any change in • the estimated exercise price of the options and the carrying amount of “Non-controlling interests” are fully booked as “Retained earnings attributable to equity holders of the parent”; in the event of a buyback, the liability is settled by the cash • payment related to the acquisition of minority shareholders’ stakes in the subsidiary in question. However, when the commitment expires, if the buyback does not take place, the liability is written off against non-controlling interests and PURCHASE COMMITMENTS GRANTED TO MINORITY SHAREHOLDERS OF FULLY CONSOLIDATED SUBSIDIARIES 3.2.4

“Retained earnings attributable to equity holders of the parent” according to their respective amounts; and as long as the options have not been exercised, results from • non-controlling interests subject to put options are included in the consolidated income statement as “Non-controlling interests”. FISCAL YEAR CLOSING DATE OF CONSOLIDATED 3.2.5 ENTITIES The entities included in the scope of consolidation close their accounts on December 31. CONSOLIDATION DURING FISCAL YEAR 2020 The main changes in the scope of consolidation in the 2020 fiscal year are presented below: CHANGES IN THE OWNERSHIP INTEREST IN SUBSIDIARIES (WITH NO IMPACT ON CONTROL) Change in the Group’s ownership interest in Natixis Following a number of transactions in its own shares, the Group’s stake in Natixis stood at 70.66% at December 31, 2020 ( versus 70.68% at December 31, 2019). The impact of this change on Equity attributable to equity holders of the parent was not material. LOSS OF CONTROL Change in the method of consolidation of Coface by Natixis Coface has been consolidated under the equity method since January 1, 2020 (see Note 1.3). CHANGES IN THE SCOPE OF 3.3 Creation of the entity Loomis Sayles Operating Services LLCby Natixis in the second quarter of 2020. This entity provides operational support for Asset Management activities (services, IT infrastructure). During the fourth quarter, consolidation of Oney Gmbh and Teora. In the fourth quarter 2020, AEW Capital Management set up the vehicle Seaport Strategic Property Program I Co-Investors, LLC, as part of the creation of a new US real estate investment fund. The new entity is 100% owned by AEW Capital Management and consolidated from December 31, 2020. Deconsolidated entities SALE OF ONEY BANK RUSSIA IN THE FOURTH QUARTER 2020. Sale of FIDOR Solution AG on December 31, 2020. This holding has been reported under IFRS 5 since the second quarter 2020. LIQUIDATION OF ONEY CHINA. Dissolution of Sopassure: pending the creation of a new bancassurance entity incorporating CNP Assurances and La Banque Postale, at the end of 2019, BPCE and La Banque Postale signed a new agreement in their capacity as shareholders of CNP Assurances (with stakes of 16.11% and 62.13% respectively). The new agreement, which expires in 2030, led to the winding up in January 2020of their joint holding company, Sopassure, without this having any impact on Groupe BPCE’s percentage holding in CNP Assurances or its significant influence over this group. OTHER CHANGES IN SCOPE Newly consolidated entities

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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