Eurazeo / 2019 Universal Registration Document

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

Measurementof investmentsin associates – See Note 8.1“Investmentsin associates”

Descriptionof risk

Howour auditaddressedthis risk

At December 31,2019, investments in associates and in joint ventures amounted to €1,340 million, equivalent to 9.6% of total assets, including €220 million attributable to Europcar, €286 million attributable to Albingia, €217 million attributable to Rhône, €141 million attributable to Trader Interactive and €107 million attributable to Emerige. At the year-end, when management identifies indications of impairment, a test is conducted to determine whether or not an impairment loss should be recognized. A proven or expected fall in EBITDA, or a negative change in one or more market inputs that could have an impact on the value of the investment, are indications of impairment. At December 31, 2019, the Group identified an indication of impairment for its investment in Europcar, of which the net carrying amount of the shares was €392 million at December 31, 2018. After taking into account net income, other adjustmentsto reserves and the distribution of dividends, an impairment loss of €157.9 million was recognized. We deemed the measurementof Eurazeo’s investments in associates to be a key audit matter, given the sensitivityof the judgmentrequired from management to identify indications of impairment and to determine the recoverable amount of its investments as part of the implementation of the impairmentests. At December 31, 2019, financial assets (excluding debt instruments measured at amortized cost) amounted to €1,393 million, equivalent to 10%of total assets, and are all recognizedat fair value throughprofit or loss. For non-current financial assets quoted in an active market, their fair value is determined on the basis of the last share price on the closing date. Non-current financial assets relating to investments not quoted in an active market are measuredat the acquisitioncost for assets acquired during the year or at fair value in accordance with the recommendationsoutlined in the InternationalPrivate Equity Valuation (IPEV) guidelines for the other financial assets. This fair value is based on the measurement methods used as part of the determination of Net Asset Value (inparticular the multiplesmethod). Based on the degree of judgment required from management to measurethese assets, we deemedthe classificationand measurement of financialassets toconstitutea key auditmatter. Risk identified

Our audit approach focused on assessing the appropriatenessof the analyses performed by management to identify indications of impairment and of the methods used to calculate this impairment, particularly in comparisonwith NetAsset Value of those companies. For Europcar, we examined the analysis performed by management that resulted in the identification of an indicator of impairment and to recognize an impairment loss at December 31, 2019. We assessed the appropriateness of the disclosures provided in Notes 8.1 “Investments in associates” to the consolidated financial statements.

Classificationandmeasurementof financialassets – See Note 8.2“Financial assets” and Note 16.10 “Financial assets and liabilities”

Howour auditaddressedthis risk

Our workprimarily involved: For financial assets quoted in an active market, verifying the • consistency of theshare prices used with observable data; For other non-current financial assets relating to investments not • quoted in an active market, assessing the reasonableness of the key assumptions made for measurement purposes (multiples, risk or size premiums,etc.): For example,we analyzedthe consistencyof forecastswith past • performance and the market outlook. Where the fair value is determined with reference to similar recent transactions, we corroboratedthe analysisprovidedwithavailablemarketdata; Assessing the correct application of the choices made by • management, particularly the impact of the classification of all of those non-current financial assets at fair value through profit or loss; Assessing the appropriateness of the disclosures provided • in Note 8.2 “Financial assets” to the consolidated financial statements. We attest that the information relating to the Group set out in the management report includes the consolidated Non-Financial Performance Statement required under Article L. 225-102-1 of the French Commercial Code. However, in accordance with Article L. 823-10of the French Commercial Code,we have not verified the fair presentation and consistency with the consolidated financial statements of the information given in that statement, which will be the subjectof a report by an independent third party.

Specific verifications As required by legal and regulatory provisions and in accordancewith professional standards applicable in France, we have also verified the information pertaining to the Group presented in the Executive Board’smanagementreport. We have no matters to report as to its fair presentation and its consistencywith the consolidatedfinancial statements.

EURAZEO / 2019 UNIVERSAL REGISTRATION DOCUMENT

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