FFP_REGISTRATION_DOCUMENT_2017

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FINANCIAL STATEMENTS

Consolidated financial statements

NOTE 1

ACCOUNTING POLICIES

The main accounting policies applied in the presentation of the consolidated financial statements are set out below. These policies were applied consistently to all the financial years shown. FFP’s consolidated financial statements were prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. Those standards can be consulted at http://ec.europa.eu/internal_ market/accounting/ ias/index_en.htm. International Financial Reporting Standards include IFRSs and IASs (International Accounting Standards) and the related interpretations as prepared by the SIC (Standing Interpretations Committee) and the International Financial Reporting Interpretations Committee (IFRIC). All standards, interpretations and amendments published by the IASB, as adopted by the European Union at 31 December 2017, were applied. No new standards were applied early. New IFRSs that will be applicable in future periods are as follows:  W IFRS 16 – Leases 01/01/2019 The main consequence of applying IFRS 9 - Financial Instruments from 01/01/2018 will be the distinction drawn between two categories of FFP’s investments on the balance sheet: O securities recognised at fair value through equity for investments in non-consolidated companies; O securities recognised at fair value through profit and loss for Portfolio Investment Securities and other investment securities. Changes in the fair value of investments in non-consolidated companies will continue to be taken to equity. However, in the event of a disposal, the residual capital gain or loss will also be taken to equity. Changes in the fair value of Portfolio Investment Securities and other investment securities will now be taken to profit or loss, not equity. Applying IFRS 9 to the 2017 financial statements would reduce consolidated net income by €99 million (from €222 million to €123 million) based on the following adjustments, which are presented net of deferred tax: O capital gains resulting from disposals of securities in non- consolidated companies amounting to €146 million would be presented under comprehensive income; O on the other hand, unrealised gains on Portfolio Investment Securities and other investment securities amounting to €47 million would be recognised under profit and loss. Applicable to accounting periods starting on or after  W IFRS 9 – Financial Instruments  W IFRS 15 – Revenue from Contracts with Customers 01/01/2018 01/01/2018 01/01/2018 O Clarifications to IFRS 15

As a balancing entry, other comprehensive income would increase by €99 million. As regards the other standards applicable from 01/01/2018 and 01/01/2019, the potential impacts of these new standards on the Group’s consolidated financial statements are currently being analysed, but are unlikely to be material. The 2017 consolidated financial statements and the related notes were approved by FFP’s Board of Directors on 23 March 2018.

1.1

SCOPE OF CONSOLIDATION

A. Parent company FFP Société anonyme (public limited company) 66, avenue Charles de Gaulle 92200 Neuilly-sur-Seine Business activity: investment management Listing market: Euronext Paris (compartment A) B. Subsidiaries

Subsidiaries are entities over which FFP has sole control. Subsidiaries are fully consolidated from the date on which control is transferred to FFP. They are recognised at acquisition cost, which corresponds to the fair value of assets acquired and liabilities assumed, plus costs directly attributable to the acquisition. The surplus of the acquisition cost over the fair value of the acquired company’s identifiable net assets is recognised as goodwill under intangible assets. Intra-group transactions and balances on transactions between group companies are eliminated. The accounting policies of subsidiaries have been aligned with those of FFP. C. Associates Associates are all entities over which the Group does not have control, but over which it has significant influence, which is generally the case if the group holds 20-50% of its voting rights. Investments in associates are accounted for under the equity method, on the basis of the associates’ consolidated financial statements, and initially recognised at cost. The ownership percentage used for consolidation purposes is calculated by dividing the number of shares held in the associate by the associate’s total number of shares in issue minus treasury shares that are destined to be cancelled.

1.2

FOREIGN-CURRENCY TRANSACTIONS

FFP’s financial statements are presented in euros. Transactions denominated in foreign currencies are translated into euros on the exchange rate in force on the transaction date. Foreign-currency items on the balance sheet consist mostly of available-for-sale securities and debts related to the purchase of

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FFP

2017 REGISTRATION DOCUMENT