GROUPAMA / 2018 Registration document

FINANCIAL STATEMENTS ANNUAL FINANCIAL STATEMENTS AND NOTES

INCOME TAX NOTE 21

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Tax charge

31.12.2018

31.12.2017

(in thousands of euros)

Corporate income tax payable

(28,738)

(114,186)

Reserves linked to fiscalconsolidation gains in year N Reserve for tax consolidation income N-1 Actual tax consolidation income N-1 Carry-back Other

142,236

210,441

(16,087)

11,086

TOTAL INCOME TAX

97,411

107,341

Specific nature and make-up of the “Corporate income tax” line At 31 December 2018, the “income tax” line includes a net tax credit of €97.4 million that breaks down as follows:

Tax loss carry-forwards At 31 December 2018, the consolidated group no longer had short-term carry-forwards. Groupama Assurances Mutuelles tax audit Groupama Assurances Mutuelles underwent a tax audit in 2010. Reserves have not been recognised for some of the adjustments considered to be excessive by the tax authorities for technical reserves for property and casualty as well as long-term care risk. Groupama Assurances Mutuelles essentially believes that the reasons behind the adjustments are highly questionable, and it thus has a technical case to make in litigation. The sums demanded in 2013 have been recorded in tax debts with an offset to income receivable from the government. This account was reduced for the carry-back then the corporate tax abatement over fiscal year 2009.

tax consolidationincome: €187.3 million; ❯ tax consolidationexpenses: -€61.1 million; ❯ Group corporate tax expense: -€28.7 million. ❯

“Income tax” consists of taxable income posted to individual tax income for the year from consolidated subsidiaries totalling €142.2 million. The tax consolidation group generated a taxable profit of €83.6 millionsubject to corporate tax at the ordinary tax rate. As a result, the corporate tax expense of the tax consolidation group was a total amount of €28.7 million: €27.8 million for corporation tax at the ordinary rate and €0.9 million for the 3.3% social contribution.

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BREAKDOWN OF EMPLOYEE EXPENSES NOTE 22

31.12.2018

31.12.2017

(in thousands of euros)

Salaries

69,552

69,721

Social Security charges

31,278

32,652

Other

6,271

1,997

TOTAL

107,101

104,370

These figures correspond to the de facto Groupama Assurances Mutuelles grouping after allocation to each of its constituents. In 2018, the average rate of expenses of the group kept by Groupama Assurances Mutuelles is 73.70%. The Company receives the tax credit for competitiveness and employment (CICE) calculated in accordance with Article 244 quater C of the French General Tax Code at 6%. For fiscal year 2018,the CICE amounted to €0.3 million.

The use of this tax credit particularlypermitted the financing of: actions to improve the competitivenessof the Companythrough ❯ investments relating to business prospecting, improvement of customersatisfaction,and reinforcementof technicalanalysisand managementprocedures; IT and process developments related to the use of new ❯ technologies; employee training. ❯

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES