Eurazeo / 2018 Registration document

CONSOLIDATED FINANCIAL STATEMENTS Statutory Auditors' report on the consolidated financial statements year ended December 31, 2018

Measurement of main components of goodwill and intangible assets with indefinite useful lives - See Note 6.1 “Goodwill”, Note 6.2 “Intangible assets”, Note 6.4 “Impairment losses on fixed assets”, and Note 16.8 “Impairment of non-financial assets” to the consolidated financial statements.

Description of risk

How our audit addressed this risk

At December 31, 2018, goodwill represented €3,221 million, equivalent to 27% of total assets, including in particular: €846 million attributable to Worldstrides, €599 million attributable to Eurazeo PME, €506 million attributable to Planet, €388 million attributable to Seqens and €214 million attributable to Sommet Education. Other intangible assets corresponded essentially to trademarks in the amount of €636 million of which €494 million have indefinite useful lives, including €274 million attributed to the Eurazeo PME group, €126 million attributed to Sommet Education and €72 million attributed to the Carambar & Co group. At each year-end, management conducts impairment tests for all assets with indefinite useful lives to verify that their net carrying amount is lower than their recoverable amount (the higher of fair value less costs of disposal and value in use). These tests require a significant amount of judgment and assumptions, particularly in determining the cash-generating units (CGUs), future cash flows based on business plans drawn up by the management of each CGU and the discount rates and perpetual growth rates used to project those flows. As indicated in Note 6.4.1 and Note 6.4.2 to the consolidated financial statements, due to the change in model made by the Group, the level of granularity of the CGUs has been revised by management. Impairment tests are now performed at the level of each investment, with each one representing a CGU. We deemed the measurement of goodwill and trademarks relating to these investments to be a key audit matter due to: their materiality in the consolidated financial statements; • the fact that the determination of their recoverable amount is • based on assumptions, estimates and assessments and is subject to uncertainty, particularly with respect to the probability of achieving the projected future cash flows used to measure their recoverable amount; and the sensitivity of the recoverable amount to changes in the • financial data and assumptions made.

For the main components of goodwill and trademarks, our work consisted primarily of: Assessing the relevance of the determination of the CGUs • (particularly the taking into account of the change in Eurazeo’s model used to define the CGUs; Verifying the consistency of the other methods used for • impairment testing; Assessing the reasonableness and the consistency of the key • assumptions made to determine cash flows (business plans) in relation to the underlying operational data; Assessing, in association with our evaluation experts, the discount • rates and long-term growth rates employed. Lastly, we examined the appropriateness of the disclosures provided in Note 6.1, Note 6.2 and Note 6.4 to the consolidated financial statements, notably the sensitivity analysis assumptions.

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Eurazeo

2018 Registration Document