BPCE - 2020 Universal Registration Document

FINANCIAL REPORT

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

Impact of lease contracts on the income statement – lessee

12/31/2020

12/31/2019

in millions of euros

EXPENSES FROM LEASE TRANSACTIONS

(276)

(308)

Interest expenses on lease liabilities Depreciation of right-of-use assets

(15)

(23)

(248)

(276)

Variable lease expenses not included in measurement of lease liabilities

(5) (7) (1) 29

(1) (7) (1) 13

Expenses on short-term leases (1)

Expenses on underlying assets of low value (1)

INCOME FROM SUB-LEASING/OPERATING LEASES

Related to leases not recognized in the balance sheet. (1)

When the Group sub-lets all or part of an asset it leases, the sub-letting contract is analyzed in substance using the same approach as that applied by lessors who distinguish between operating and finance leases.

Income from such leases is presented using the same approach as lessors: as income from other activities for operating leases and as interest income for finance leases.

Schedule of lease liabilities

12/31/2020

12/31/2019

in millions of euros

Amounts of non-discounted future payments

1,210

1,365

< 1 year 1-5 years > 5 years

258 592 359

290 720 354

Commitments on leases not yet recognized in the balance sheet In accordance with IFRS 16, future minimum payments relating to leases to which the Group is committed but whose underlying assets have not yet been made available are not recognized on the balance sheet prior to their commencement date. The following table shows the minimum payments expected on these contracts.

5

12/31/2020

12/31/2019

in millions of euros

Amounts of non-discounted future payments

361

378

< 1 year 1-5 years > 5 years

3

104 257

63

312

RELATED-PARTY TRANSACTIONS 12.3 For BPCE SA group, 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; TRANSACTIONS WITH CONSOLIDATED 12.3.1

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 €1,039 million in 2020 (€1,100 million in 2019), for the management of the Group’s pension plans, – reimbursement rights of €50 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 billion was recorded under “Loans and receivables due from customers” (see Note 9.1.1.4). This cash deposit is backed 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 13, “Scope of consolidation”.

503

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE