GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

6 EARNINGS AND FINANCIAL POSITION Cash and Group financing

6.4

CASH AND GROUP FINANCING

ISSUER’S FINANCING

6.4.1

Cash and cash equivalents totalled €435 million at 31 December 2020, up €42 million compared with 31 December 2019. The distribution of cash flows for fiscal year 2020 among the various business lines is as follows: operational business cash flows €834 million; ❯ investment, financial, and other business cash flows ❯ -€792 million; total: €42 million. ❯

STRUCTURE

Debt totalled €1.632 billion at year-end 2020 for Groupama Assurances Mutuelles. Subordinated liabilitiesat 31 December2020 totalled€1.632 billion, €0.002 billion higher than at 31 December 2019. The Group’s debt ratio is assessed at the combined scope level (ratio now calculatedaccordingto the methodchosenby our rating agency) and was 26.9%at the end of 2020, comparedwith 27.2% at 31 December 2019.

31.12.2020

31.12.2019

<1 year 1–5 years >5 years

Total

<1 year 1–5 years >5 years

Total

(in millions of euros)

Subordinated debt of insurance companies

1,632 1,632

1,630 1,630

Financing debt represented by securities Financing debt with banking-sector companies TOTAL FINANCING DEBT

1,632 1,632

1,630 1,630

At 31 December2020, this issue was quotedat 104.2%compared with 98.2% at 31 December 2019. In view of the conditions specific to these issues and pursuant to IAS 32 sections 16 and 17, these three bonds are considered as financial liabilities rather than equity instruments.They are therefore recognised under financing debts. Interest costs net of tax are recognised in the income statement. In addition, under IFRS, one subordinatedinstrument is recorded in equity instruments and therefore does not appear in the tables above. This is a bond issued by Groupama Assurances Mutuelles on 28 May 2014 in the form of an indefinite-termsubordinatedbond (TSDI) for a total nominal amount of €1.1 billion. This instrument was issued at a fixed rate of 6.375% for the first 10 years and then at a variable rate equal to the 3-month Euribor rate plus a margin of 5.77%. This bond includes a “10-year call” that allows the issuer to redeem the bond early as from the tenth year. On 31 December 2020, this TSDI was trading at 115.1%, compared with 111.7% on 31 December 2019.

The “Subordinateddebt” line comprisesthree issues of bond loans as follows: The first bond was issued in the form of redeemablesubordinated instruments (TSR) in January 2017 through a swap for a nominal amount of €650 million. This 10-year bond has a fixed annual rate of 6% for 10 years. At 31 December2020, this issue was quotedat 125.0%compared with 127.5% at 31 December 2019. The second bond was issued in the form of redeemable subordinated instruments (TSR) in September 2018for a nominal amount of €500 million. This 10-year bond has a fixed annual ratoef 3.375% for 10 years. At 31 December2020, this issue was quotedat 112.5%compared with 107.8% at 31 December 2019. The third bond was issued in the form of redeemablesubordinated instruments (TSR) in September 2019 for a nominal amount of €500 million. This 10-year bond has a fixed annual ratoef 2.125% for 10 years.

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Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES