GROUPAMA / 2019 Universal Registration Document

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7 FINANCIAL STATEMENTS Consolidated financial statements and notes

The growth rate applied for valuation after the explicit period dependson marketmaturity.It is basedon indicatorsresultingfrom strategic studies. The rates used for Western and Southern Europeanmature markets are within the 1% to 3% bracket. In the emerging markets with a low insurance penetration level this rate may be upto 5%. Ex-post comparative analyses of business plan data and actual data for the main income statement totals (combined ratio, underwritingincome etc.)have been carried out and have not had any impact on the impairment tests. Sensitivity tests have been carried out on the value in use applied, with thefollowingchange assumptions: rise of 100 basispoints in the discount rate; and ● decline of50 basis points in the long-termrate of growth. ● For the goodwill of the cash-generatingunit in countries of Central and Eastern Europe, a combined increase of 100 basis points in the discount rate and yield rate would lead to excess coverage of €133 million (while a lowering by 100 basis points would result in excess coverage of €273 million). On this same cash-generating unit, the sensitivity test on a decrease in the long-termgrowth rate

of 50 basis points would result in excess coverage of €161 million (the excess would be €221 million with a favourable change of 50 basis points). For the goodwillof the cash-generatingunit of the Greek subsidiary, GroupamaPhoenix,an increaseof 100 basispoints in the discount rate would lead to excess coverageof €28 million(while a lowering of the discount rate by 100 basis points would result in an excess of €54 million). The sensitivity test on a decrease in the long-term growth rate of 50 basis points would result in excess coverage of €33 million (the excess would be €49 million with a favourable change of 50 basis points). On the cash-generating unit of the French subsidiary Gan Assurances,the sensitivity test on an increase of 100 basis points in the discount rate would lead to a shortfall of €79 million,while a decrease of 100 points would lead to an excess of €260 million. The test on a decrease in the long-term growth rate of 50 basis pointswould result in an excessof €24 million,whereasan increase of 50 basis points would result in an excess of €120 million. The simultaneousoccurrenceof all adverseor favourablescenarios would have an impact nearly identical to the aggregate of the individual impacts.

2.2

Goodwill – Breakdown by cash-generating unit

31.12.2019

Foreignexchange adjustment

Grossvalue

Impairment

Netvalue

(in millionsof euros)

CentralandEasternEuropeancountries

1,031

(502) (102) (147)

(196)

332 679

Italy

781 262 131

Turkey Greece

(116)

(48)

TotalInternational GroupamaGanVie

2,206

(799)

(312)

1,095

470 196

GanAssurances

Financialbusinesses,propertyandotherinsurancecompanies

TotalFranceandOverseas

696

CLOSINGVALUE

2,901

(799)

(312)

1,791

31.12.2018

Foreignexchange adjustment

Grossvalue

Impairment

Netvalue

(in millionsof euros)

CentralandEasternEuropeancountries

1,031

(502)

(189)

340 781

Italy

781 262 131

Turkey Greece

(147)

(115)

(48)

TotalInternational GroupamaGanVie

2,205

(697)

(304)

1,204