BPCE - 2020 Universal Registration Document

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BPCE MANAGEMENT REPORT FINANCIAL REPORT

NET GAINS OR LOSSES ON LONG-TERM INVESTMENTS Net gains or losses on long-term investments amounted to -€1,341 million in 2020. They consist of provisions and reversals of impairments on equity investments, in particular Natixis (-€1,521 million), BPCE International (-€106 million), Crédit Foncier (+€453 million), Banque Palatine (+€87 million), CEGC (-€164 million) and BPCE Factor (-€102 million). INCOME TAX In 2020, as a result of tax consolidation income, the gain in income tax after taking into account changes in provisions and other adjustments was €267 million, up €121 million versus 2019. The change is mainly due to the contribution of a larger deficit by BPCE SA and BPCE International, the reversal of the provision covering the GIE Musica Lease ended early, and the recording as tax income of a tax loss claim concerning foreign tax credits following changes in case law.

No other luxury non-tax deductible expenses were incurred during the fiscal year.

FUND FOR GENERAL BANKING RISKS AND NET INCOME No movement was made to the fund for general banking risks. Net income came to -€1,073 million.

PROPOSED ALLOCATION OF NET INCOME It is proposed to the General Shareholders’ Meeting:

to allocate the net loss of -€1,073,022,522.84 to the item • “Retained earnings”. As a result of this allocation, the balance of the “Retained earnings” item is €2,331,310,315.31; to distribute dividends of €1,297,374,005.20 to shareholders • (including €321,499,125.48 in shares), by deduction from the “Retained earnings” item. As a result of this allocation, the balance of the “Retained earnings” item is €1,033,936,310.11. As an interim dividend of €579,307,742.00, equal to €17 per share, was paid on December 31, 2020, as decided by the Management Board at its meeting of December 17, 2020, a residual dividend of €718,066,263.20 remainsto be paid to the shareholders, equal to €20.68 per share. In accordance with the provisions of Article L. 243 bis of the French General Tax Code, the table below shows the dividends paid out in respect of the three previous fiscal years:

NON-TAX DEDUCTIBLE EXPENSES Disclosure of luxury expenditures

In accordance with the provisions of Article 223 quater and quinquies of the French General Tax Code, the financial statements for the past fiscal year include €362,011 in non-deductible expenses pursuant to Article 39.4 of said Code. The resulting additional tax was €115,916.

Fraction of the dividend eligible for the 40% tax deduction

Fraction of the dividend ineligible for the 40% tax deduction

Balance sheet date

Dividend per share

12/31/2017 12/31/2018 12/31/2019

Class “A” and “B” shares Class “A” and “B” shares Class “A” and “B” shares

€12,9382 €12,3720 €15,7340

€403,005,056.92 €403,040,426.36 €536,166,353.68

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INFORMATION ON SUBSIDIARIES, EQUITY INVESTMENTS AND BRANCHES Activity and results of the main subsidiaries The activity and results of the main subsidiaries are described in Chapter 1 of this document. A list of subsidiaries and equity investments is available in Chapter 5 “BPCE parent company financial statements”. Investments and controlling interests In March 2020, BPCE acquired a stake in the share capital of Meniga LTD in the form of convertible bonds for an amount of €4 million. In March, BPCE acquired from Crédit Foncier 100% of the shares in Crédit Foncier Immobilier (CFI) for an amount of €6.7 million. CFI was renamed BPCE Solutions Immobilières in November 2020. In June, buyback of Caisse de Refinancement de l’Habitat shares from three French banks for an amount of €20.8 million. The shareholding rate stands at 9.09%.

In December, the share capital of Société d’Exploitation MAB was reduced by €3 million, bringing the share capital to €7.5 million and issue premium repayment of €3 million. In September, participation by BPCE in the creation of the European company EPI Interim company with an initial payment of €0.4 million out of a total subscription of €1.6 million (the balance has not yet been called). In November, capital increase of SURASSUR SAfully subscribed by BPCE for an amount of €17.2 million. BPCE subscribed to two capital increases of Fidor Bank of €20.4 million in September and €47 million in November (through contributions to the “Reserve capital”). Also during fiscal year 2020, BPCE increased its asset financing capital by €12.6 million. Branches BPCE owns no branches.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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