Eurazeo / 2019 Universal Registration Document

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

Measurement of main components of goodwill and intangible assets with indefinite useful lives – See Note 6.1 “Goodwill”, Note 6.2 “Intangible assets”, Note 6.5 “Impairment losses on fixed assets”, and Note 16.8 “Impairment of non-financialassets” to the consolidatedfinancial statements.

Risk identified

Howour auditaddressedthis risk

Goodwill represented a net amount of €3,916 million at December 31, 2019, equivalent to 28% of total assets, and mainly including €890 million for WorldStrides, €599 million for Eurazeo PME, €509.9 million for Planet, €387 million for Seqens and €322 million for Dorc. Other intangible assets correspondedessentially to trademarks in the amount of €646 million of which €511 million have indefinite useful lives, including €245 million attributed to the Eurazeo PME group, €131 million attributed to Sommet Education and €103 million attributed tothe Carambar & Cogroup. 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 recoverableamount (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 described in Notes 6.5.1 and 6.5.2 to the consolidated financial statements, impairment testing is carried out for each investment, each one representing a CGU for the purposes of the consolidated financialstatements. We deemed the measurement of goodwill and trademarks relating to these investmentsto be a key audit matterdue to: their materialityin the consolidated financialstatements; • 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 achievingthe projected future cash flows used to measure their recoverableamount and the sensitivity of said amount to changes in the financial dataand assumptionsmade.

For the main components of goodwill and trademarks, our work consisted primarilyof: Assessing the relevanceof the determinationof 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 tothe underlyingoperational data; Assessing, in associationwith our evaluation experts, the discount • rates and long-termgrowth rates employed. Lastly, we examined the appropriateness of the disclosures provided in Note 6.1, Note 6.2 and Note 6.5 to the consolidated financial statements,notably the sensitivity analysis assumptions.

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2019 UNIVERSAL REGISTRATION DOCUMENT