GROUPAMA / 2019 Universal Registration Document

6 EARNINGS AND FINANCIAL POSITION Management report of the Board of Directors

The economic operating income of financial and banking Immobilier, Groupama Épargne Salariale, and Groupama Gan businesses totalled +€38 million in 2019 versus +€34 million in Reim) represented +€6 million in income in 2019.

2018. These figures include Groupama Asset Management’s result, which was stable over the period at +€32 million. The economic operating income of the other entities (Groupama

Net income from financial and banking businesses amounted to -€106 million at 31 December2019 and includes Orange Bank’s equity-method income in other transactions net of tax for -€63 millionas well as theimpairmentof securitiesfor -€81 million.

Groupama Assurances Mutuelles and holdings 6.1.4.6

31.12.2018

31.12.2019

2019-2018 change

(in millions ofeuros)

Other operating income and expensesand non-underwritingcurrent income and expenses

(119)

(147)

(29)

-24.4%

Recurringfinancial income (after corporate income tax)

(12)

3

16

>100%

Other items

42

54

12

28.7%

Economicoperatingincome

(89)

(91)

(1)

-1.6%

Capital gains realisednet of corporate income tax

89

9

(80)

-90.4%

Allocationsto reservesfor long-term impairmentnet of corporate income tax Gains or losses on financialassets recognisedat fair value net of corporate income tax

(2)

2

84.9%

12

(2)

(14)

<-100%

Financingexpenses

(57)

(63)

(6)

-10.1%

Other operationsnet of corporate income tax

32

51

19

60.4%

Result excludingdiscontinuedoperations

(16)

(96)

(80)

<-100%

Net income from discontinuedbusinessactivities

(2)

2

83.4%

GROUPNET INCOME

(19)

(97)

(78)

<-100%

Groupama Assurances Mutuelles is the head entity of the Group and is the central body. It acts as a holding company by holding (directly or indirectly) all of the Group’s French and international subsidiaries. In this function, Groupama Assurances Mutuelles ensures the operational managementof the Group. It is the focal point for internal and external financing. The financial result is broken down on a standardisedbasis for the underwritingactivity. The expenses allocated to that activity correspondto the share of costs and expenses of general management, functional departmentsand shared, non-underwriting expenses. The economic operating income of holding companieswas stable at -€91 million in 2019. This change masks an increase in fees related to various investment or regulatory projects offset by the

improved recurring financial margin as well as other items that correspondto the tax on recurring income, the proceeds of which increased by€12 million. The net income of holding companieswas a loss of -€97 millionat 31 December 2019 compared with a loss of -€19 million at 31 December 2018. This result was impacted especially by the decrease in the non-recurringfinancial margin due to lower capital gains on property. Other transactions net of taxes generated +€19 millionin incomemainly related to non-recurringtax effects in France. As a reminder, the result of discontinued businesses (-€2 millionin 2018) correspondedto the result from the divestment of Portugal’s subsidiaries.

The Group’s netincome breaksdown as follows:

Net income (in millions ofeuros)

31.12.2018

31.12.2019

Total Insurance –France

340

510

Total Insurance –International

22

(98)

Bankingand financialbusinesses

(24)

(25)

Holding companyactivities

(19)

(97)

Goodwill impairment

0

(183)

Other

0

(3)

TOTALGROUPAMAASSURANCESMUTUELLESNET INCOME

319

104

125

Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES