Eurazeo / 2019 Universal Registration Document

Financial Statements Consolidated Financial Statements for the year ended December 31, 2019

At the acquisition date, the Group recognizes goodwill in the amount of the difference between the consideration transferred plus any non-controlling interests in the entity acquired and the identifiable assets transferrednet of liabilitiesassumed. Where an acquisitionleading to the acquisitionof control is performed in stages, the Group revalues the previously held investment at fair value at the acquisition date and recognizes any resulting gain or loss in net income.

transaction rather than through continuous use. For this to be the case, an asset (or a group of assets) must be available for immediatesale in its current state, subject only to terms that are usual and customary for sales of such assets, and its sale must be deemed highly probable. In the case of financial instruments or investment property classified as held for sale, applicable measurement rules are set out in IFRS 9 and IAS 40, respectively.These assetsare stated atfair value. Pursuant to IFRS 5, Non-current Assets held for Sale and Discontinued Operations , all liabilities (excluding equity), associated with groups of assets classified as held for sale are presented in a separate line of the Statement of Financial Position. Where an activity is classified as discontinued, the income and expenses relating to this activity are presented on a separate line of the Income Statement, under Net income (loss) from discontinued operations. Only purchased trademarks, which are identifiable, widely known and with a fair value that can be reliably measured are recognized as assets, atthe valueattributed to themon acquisition. Whether a trademark has a finite or indefinite useful life is determined based, in particular,on the followingfactors: overall position of the trademark in the sector, as measured • by sales volume, internationalscope and renown; outlookfor the long-term return; • exposureto fluctuationsin the economy; • major developments in the sector liable to have an impact on the • trademark's future; age of thetrademark. • Trademarks with a finite useful life are amortized over their useful life and, where appropriate, are subject to impairment tests where there is indicationthat their valuemay havebeen impaired. Trademarks with indefinite useful lives are not amortized but are subject to impairment tests on an annual basis or whenever there is indicationthat their valuemay havebeen impaired. Costs incurred to create a new trademark or to develop an existing one are expensedin the period incurred. Other intangible assets Intangible assets (excluding trademarks) are measured at acquisition cost less accumulatedamortization and impairment. The useful life of intangible assets is assumed to be finite and amortization is recognized as an expense, generally calculated on a straight-line basisover the estimated usefullife: Amortization is recognized from the date on which the asset is ready for commissioning. Intangible assets 16.5. Trademarks

Foreign currencytranslation 16.3. Foreign-currency denominated transactions

Transactionsby Group entities in foreign currenciesare translated into the functional currency at the spot exchange rate at the date of the transaction. The foreign-currency value of assets and liabilities is translated at the spot exchange rate prevailing on the last day of the period. The foreign exchange gains and losses resulting from the translation of foreign-currency transactions are recognized in the income statement. Translation offoreign-currency denominated financial statements The financialstatementsof companiespresentedin foreign currencies are translatedas followson consolidation: assets and liabilitiesare translated atthe closingexchangerate; • income statement items are translated at the average exchange • rate for the period. Unrealized foreign exchange gains and losses are reported on a separate linein equityunder “Foreigncurrency translationreserves”. Foreign-currency denominated inter-company advances Foreign exchange gains and losses arising on foreign-currency denominated inter-company advances, the settlement of which is neither plannednor probable in the foreseeablefuture, are recognized in Foreign currencytranslationreserves.These foreign exchangegains and losses are not released to profit or loss on repayment, unless repayment forms part of a partial sale of the entity ( i.e. leading to a decreasein the percentage interest in the subsidiary). Assets (or groups ofassets) 16.4. and liabilitiesclassified as heldfor sale The Eurazeo group’s main activity is the purchase and sale of investmentswhichmay,at the closingdateof the consolidatedfinancial statements, constitute assets (or groups of assets)heldfor sale. Non-current assets (or groups of assets) are classified as held for sale and stated at the lower of carrying amount and fair value less costs to sell, if the carrying amount is recovered principally by means of a sale

06

Straight-lineamortization inyears

Investment and asset management

Eurazeo Patrimoine EurazeoBrands

Intangibleasset category

activities EurazeoCapital

EurazeoPME

Customer contracts andcustomerrelationships

2 to 20 10 to 20

3 to 20

10 to 15

Patentsand licenses

3 to 5

1 to 17 1 to 3

5

10

Other software Accreditations

3

3 to 7 5 to 14

3 to 5

4

Curricula

5

/ EURAZEO

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2019 UNIVERSAL REGISTRATION DOCUMENT