GROUPAMA / 2019 Universal Registration Document

7 FINANCIAL STATEMENTS Annual financial statements and notes

The increase in “Investment income” comes from an increase in dividenddistributionsin 2019 fromsubsidiaries.

“Other investment expenses” and “Other investment income” include allowances net of writebacks for reserves for long-term impairmentfor -€173.1 millionat 31 December2019 versus a net writeback of €44.8 million in 2018.

Other non-technical income and expenses Note 19

Other non-underwriting expenses of -€18.2 million mainly consist of general expensesbrokendown by budget control.

Extraordinary income and expenses Note 20

The 2019 extraordinaryresult presents an expense of -€21.3 million,primarily made up of subsidies granted to Group’s entities to fund major programmes for -€24.7 million.

Income tax Note 21

Tax charge ı

31.12.2019

31.12.2018

(in thousands ofeuros)

Corporateincome tax payable

(267,549)

(28,738)

Reserves linked to fiscal consolidationgains in year N

275,755

142,236

Other

(15,850)

(16,087)

TOTAL INCOMETAX

(7,645)

97,411

Specific nature and make-up of the “Corporate income tax” line As at 31 December2019, the “income tax” line includes a net tax

Tax loss carry-forwards At 31 December 2019, 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 reasonsbehind the adjustmentsare 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 receivablefrom the government.This account was reduced for the carry-back thenthe corporate tax abatement over fiscal year 2009.

credit of €7.6 million that breaksdown as follows: tax consolidation income: €289.0 million; ● tax consolidationexpenses:-€29.1 million; ● Group corporate tax expense: -€267.5 million. ●

The “income tax” item consists of taxable income posted to individual tax income for the year from consolidated subsidiaries totalling €275.7 million. The tax consolidation group generated a taxable profit of €775.7 millionsubjectto corporatetax at the ordinarytax rate. As a result, the corporate tax expense of the tax consolidation group was a total amount of €267.5 million:€258.5 millionfor corporate tax at the ordinary rate and €8.5 million for the 3.3% social contribution.

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Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES