Eurazeo / 2019 Universal Registration Document

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

Employee benefits 16.14 Premiumspaid by Eurazeo to defined contributionplans are expensed in the period to which theyrelate. In the case of defined benefit plans, the cost of benefits is estimated using the projected unit credit method. Under this method, entitlement to benefits is allocated to service periods using the plan's vesting formula and applying a linear progressionwhenever vesting is not uniform oversubsequentserviceperiods. Future payments correspondingto benefits granted to employeesare estimated on the basis of assumed pay increases, retirement age and mortality, after which the present value is calculatedusing the interest rate on long-term bonds issued byfirms with thehighest credit ratings. Actuarial gains and losses relating to obligations arising on defined benefit plans arerecognized directlyin consolidated equity. Past service costs resulting from a plan amendment are recognized immediately in the employees benefit expense with current service costs of theyear. The interest expense is recorded in other financial income and expense. Share-basedpayments 16.15 The Group has set-up a compensation plan settled in equity instruments (stock options and free share grants). The fair value of services rendered by employees in consideration for the grant of the options is expensedin the incomestatement. The total amount expensed over the vesting period is determined by reference to the fair value of the options granted, without taking account of vesting conditions other than market conditions. The latter are incorporated in assumptions regarding the number of options likely to become eligible for exercise. At each period end, the Group examines the number of options likely to become eligible for exercise and, where, applicable, recognizes in the income statement the impact of any adjustment to its estimates through a corresponding adjustment toequity. The fair value of stock options at the grant date is valued based on Monte Carlosimulations. Revenue from the sale of services is recognized in the period in which services are rendered, based on the stage of completion of the transaction. Sales of goods Revenue is recognized when the material risks and rewards of ownership of the property concerned are transferred to the buyer (control is transferred atthe same timeas the risks and rewards). Fees Management fees are recognized net of amounts retroceeded and investmentfees paid to business providers. Gross fees are recognized as services are provided and are calculated based on each fund's contractual documentation. They are generally a percentage of the amount subscribed, the amount invested or the Net Asset Value. Revenue recognition 16.16 Sales of services

Dividends Revenue from dividends is recognized when the dividend payout is authorized bythe Shareholders' Meeting. In addition, where a dividend distribution includes an option for payment in shares, an asset derivative is recognized and the shares distributed are initially recognized at fair value at the date of election for payment in sharesand not atthe distribution reference price. Income tax expense 16.17 The tax rates and rules applied are those enacted or substantially enacted at the reporting date (for current taxes) or that will be effective when the asset is realized or the liability settled (for deferred taxes). Current or deferred tax on items recognizeddirectly in equity is recognized directlyin equityand not inprofit or loss. Current income tax Income tax assets or liabilities due for the year or for previous years are measured at the amount expected to be collected from or paid to the tax authorities. Deferred income tax Deferred taxes are recognized using the liability method on all temporary differences existing at the reporting date between the tax base and carryingamountof assets and liabilities. Deferred tax assets and liabilities are recognized on all deductible temporary differences,tax losses carried forward (deferred tax assets) and unused tax credits (deferred tax assets), with the exceptionof the following twocases: when the deferred tax liability is the result of the initial recognition • of goodwill or when the deferred tax asset or liability is generated by the initial recognitionof an asset or liability in a transactionother than a business combinationand which at the time of occurrence, neither affects the accounting profit nor the taxable profit or loss; and in the case of deductibleor taxable temporary differencesrelating • to investments in subsidiaries and associates, deferred tax assets and liabilities are not recognized unless it is probable that the temporary difference will reverse in the foreseeable future and in the case of deferred tax assets that the temporary difference can be offsetagainst a futuretaxable profit. Deferred tax assets are also only recognized insofar as it is probable that a taxable profit will be available against which these deferred tax assetsmay be offset. The likelihood of recovering deferred tax assets is reviewed periodically for each tax entity and may, where appropriate, result in deferredtax assets no longerbeing recognized. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax assets and liabilities, and the deferred taxes relate to the same taxable entity and the same tax authority. Provisions 16.18 This heading covers liabilities with an uncertain due date and of an uncertain amount, resulting from restructurings, environmental risks, litigationand other risks. A provision is set aside wheneverthe Group has a contractual,legal or implied obligation arising from a past event and when future cash outflows can be reliably estimated. Liabilities resulting from restructuring plans are recognized when the detailed plans are finalizedand it is reasonablyexpected thatthey will be implemented.

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2019 UNIVERSAL REGISTRATION DOCUMENT