GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

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

Groupama Assurances Mutuelles and holdings 6.1.4.6

31.12.2019

31.12.2020

2020-2019 change

(in millions of euros)

Other operating income and expenses and non-underwriting current income and expenses

(147)

(149)

(1)

-0.7%

Recurring financial income (after corporate income tax)

3

10

7

>100%

Other items

54

53

(1)

-1.1%

Economic operating income

(91)

(86)

5

5.4%

Capital gains realised net of corporate income tax

9

(15)

(23)

<-100%

Allocations to reserves for long-term impairment net of corporate income tax Gains or losses on financial assets recognised at fair value net of corporate income tax

(8)

(8)

<-100%

(2)

16

19

>100%

Financing expenses

(63)

(49)

14

22.0%

Other operations net of corporate income tax

51

99

48

92.8%

GROUP NET INCOME

(97)

(43)

54

55.9%

The net income of holding companieswas a loss of -€43 millionat 31 December 2020 compared with a loss of -€97 million at 31 December 2019. This result was impacted by the decrease in the non-recurring financial margin related in particular to the repayment of the Zen bond and the unwinding of the associated swap as well as the decrease in financing expenses of €14 million. Other transactions net of taxes generated+€99 millionin incomemainly related to the decrease in the deferred tax rate in France and various allowances compared with only €+51 million in 2019. The Group’s net income was broken down as follows:

Groupama AssurancesMutuelles 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 respect of this role, Groupama Assurances Mutuelle directs the operating activities of the Group and is the focal point for internal and external financing.The financial result is broken down on a standardisedbasis for the underwritingactivity. The expensesallocated to that activity correspondto the share of costs and expenses of general management, functional departments and shared, non-underwriting expenses. The economic operating income of holding companies increased slightly to -€86 million in 2020. This change was mainly related to the improvedrecurring financialmargin, while the other items were almost stable.

31.12.2019

31.12.2020

Net income (in millions of euros)

510

214

Total Insurance - France

Total Insurance - International

(98)

10

Banking and financial businesses

(25)

(8)

Holding company activities

(97)

(95)

Goodwill impairment

(183)

(125)

Other

(3)

52

TOTAL NET INCOME - GROUPAMA ASSURANCES MUTUELLES

104

49

Goodwill impairment was mainly related to an impairment expense on the Italian subsidiary’s goodwill.

132 Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES