Eurazeo / 2019 Universal Registration Document

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

Accounting for major acquisitions during the fiscal year and purchase price allocation “Goodwill”, Note 13.4“Net cash flow frominvestingactivities” and Note 14.3 “Off-balance sheet commitments”

– See Note 2 “Consolidation scope”, Note 6.1

Risk identified

How our auditaddressedthis risk

In 2019, the Group made new investments for a total disbursement of €1,747 million. The main acquisitions were Dorc, Elemica and Emerige. For the acquisitions made during the year, the purchase price allocation will be finalized within the twelve months following the dates on whichthe Groupacquires a controllinginterest. During the year ended December 31, 2019, the purchase price allocation was finalized with respect to some of the previous years’ acquisitions(Rhône, Idinvest and Albingia). As part of these operations, a number of commitmentswere made or received by Eurazeo including purchase commitments, vendor warrantiesand shareholderagreements. Based on the analysis conducted by management of the type of investment, control, representation on governance boards and percentageshare held by Eurazeo, investmentsare consolidatedfully, according to theequity methodor classifiedas financial assets. This analysis requiresa certain amountof judgment to: Determine the consolidation method to be used in accordance • with current accounting standards; Determine the acquisition price, particularlyif earn-out clauses exist; • Identify the assets acquired and liabilities assumed, measure their • fair valueand allocate apurchaseprice to them. Identify put and call options and any other clauses, which could • have an impact on thefinancial statements. Accountingfor these acquisitionsmay be complexand material to the consolidated financial statements. Accordingly, we deemed accountingfor major acquisitionsduring the financial year to be a key audit matter.

Based onthis information, our work consistedprimarily of: Examining the major acquisition agreements entered into by • the Group during the year and, where relevant, other agreements signed as part of these operations, particularly shareholders’ agreements and managementpackages, inorder to: Ensure that the consolidation method used complied with • current accounting standards; Verify the list of off-balance sheet commitments disclosed • in Note 14.3 “Off-balance sheet commitments” to the consolidated financialstatements; Examine the cost price calculation performed by management • in relation tothe acquisitionprice and earn-outclauses. Assessing, with the support of our evaluation experts, the • appropriateness of the purchase price allocation and the measurement of the intangible assets identified for the recent acquisitions made: Assess the appropriateness of the main assumptions made by • management to identify the assets acquired and the liabilities assumedand to measure theirfair value; Examine the reports compiled by independent firms at the • request of management to identify any assets that are over-valued or liabilities that are under-valued or not taken into account in the identification of assets acquired and liabilities assumed; Perform a comparative analysis of the main assumptions used • with reference to similar recent transactions and sensitivity analyses. Assessing the appropriatenessof the disclosures presented in the • consolidated financialstatements and particularly Notes 2 and 6.1

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