BPCE - 2020 Universal Registration Document

FINANCIAL REPORT

CONTROLS OF ACCOUNTING AND FINANCIAL REPORTING QUALITY

FINANCE CONTROL The Finance Control function is responsible for preparing management information. Within Groupe BPCE, each entity’s Finance Control office is in charge of operational oversight and for producing such information for the entity and for the central institution. At BPCE, this role is assigned to the Group Performance Oversight division, the head of which reports to the Chief Executive Officer in charge of Group Finance and Strategy. In this area, its main duties are: coordinating oversight of the financial planning, budget and • multi-year rolling forecast process; coordinating the oversight of business performance in support • of the Retail Banking and Insurance division; coordinating solvency matters (capital adequacy and leverage • ratios, TLAC, MREL, etc. ) and the Pillar II approach within the Group (stress tests, ICAAP, solvency ratios, Business Model Assessment); coordinating and monitoring the management of scarce • resources within the Group (cost-effectiveness, capital/solvency, liquidity); analyzing the performance of Groupe BPCE, its business lines • and entities, especially for the publication of each quarter’s results; steering and challenging the subsidiaries’ financial • performances to safeguard the Group’s financial ratios; coordinating and steering approaches for the analysis of the • Group’s operating costs; helping prepare the Group’s strategic and financial plans; • manage the expenses of the central institution; • coordinating the Finance Control process within Groupe BPCE. • ARCHITECTURE AND REPORTING The Architecture and Reporting function is responsible for securing key IS Finance & Risk applications, ensuring the reliability of complex production processes (regulatory and management) and regulatory compliance (Basel Committee Recommendation No. BCBS 239 on the Principles for the integration of risk data and risk reporting, etc. ). At BPCE, this role is assigned to the Architecture and Reporting division, the head of which reports to the Chief Executive Officer in charge of Group Finance and Strategy. In this area, its main duties are:

make strategic architectural choices and coordinate all projects • concerning the main Group risk and financial calculators as well as the risk and financial data base in normal or crisis situations; operate, through its technological fiber, complex production • systems (Production Finance and Risks, treasury systems and banking activities) and pool project efforts for other business lines (CSP); guarantee a centralized and consistent vision across the entire • IS Finance and Risk chain; simplify, harmonize, integrate and pool in a logic of operational • efficiency and process security by relying on technological levers; implement innovative tools (simulations, proactive exercises, • data analysis, etc. ) and promote an open innovation approach (Artificial Intelligence, Green Finance, etc. ) directly linked to the ongoing search for operational efficiency; accelerate the implementation of responses to regulatory • recommendations and requirements ( e.g. BCBS 239 and the ECB Data Finance/Risk dialogue). INVESTOR RELATIONS The Investor Relations function is responsible for information published through presentations to financial analysts and institutional investors on the BPCE website and for registration documents and their updates filed with the AMF and also available on the BPCE website. Within BPCE, the function is performed by the Group Funding and Investor Relations division within the Group Finance division, the head of which reports to the Head of Finance and Strategy. Its duties in respect of accounting and financial information are: coordinating and preparing presentations of Groupe BPCE’s • quarterly results, financial structure and business development, to enable third parties to form an opinion on its financial strength, profitability and outlook; coordinating and preparing the presentation of regulated • financial information (registration document and its quarterly updates) filed with the AMF while including contributions from other BPCE functions; organizing relations with rating agencies by coordinating with • the other rated entities of the Group; organizing and maintaining relationships with credit investors • likely to hold and/or acquire debt instruments (short, medium or long term) issued by BPCE or Natixis.

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Production processes for accounting and financial data 5.8.2

GENERAL SYSTEM AND PROCESS FOR PREPARING CONSOLIDATED ACCOUNTING AND FINANCIAL DATA The central institution prepares the consolidated financial statements of Groupe BPCE and its individual company financial statements. It also produces and oversees Groupe BPCE’s regulatory ratios on a consolidated basis and those of affiliated institutions in the regulatory financial reports.

It also ensures the proper applicationby the institutions affiliated to the BPCE Group of the accounting and prudential rules and verifies the compliance of the reports with the applicable regulatory requirements. To ensure the reliability of the production processes, the Finance and Strategy division uses: an appropriate body of standards distributed to all Group • entities;

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE