Groupama // 2021 Universal Registration Document

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

Groupama Assurances Mutuelles and holdings 6.1.4.5

31.12.2020

31.12.2021

2021-2020 change

(in millions of euros)

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

(149)

(122)

27

18.0%

Recurring financial income (after corporate income tax)

10

13

3

26.6%

Other items

53

41

(12)

-22.2%

Economic operating income

(86)

(68)

18

20.6%

Capital gains realised net of corporate income tax

(15)

(3)

12

80.2%

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)

(5)

3

37.0%

16

8

(8)

-49.9%

Financing expenses

(49)

(53)

(3)

-6.3%

Other operations net of corporate income tax

87

(38)

(125)

<-100%

GROUP NET INCOME

(55)

(158)

(104)

<-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 respect of this role, Groupama Assurances Mutuelles 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 standardised basis for the underwriting business. The expenses allocated to that business correspond to the share of costs and expenses of General Management, Functional Departments, and shared non-underwriting expenses. The economic operating income of the holding companies improved by €18 million in 2021 in connection with the decrease in costs, part of which is non-recurring.

The net income of holding companies was a loss of -€158 million at 31 December 2021 compared with a loss of -€55 million at 31 December 2020. This result was impacted by the increase in the non-recurring financial margin (+€7 million) and the slight increase in financing costs (-€3 million) following the issue of green subordinated bonds in the second half of the year. Other transactions net of taxes generated an expense of -€38 million compared with €87 million in the previous year mainly due to the loss recorded following the sale of Orange Bank (-€32 million). For the record, the 2020 financial year included income following the sale of the stake in La Banque Postale Assurances IARD.

The Group’s net income was broken down as follows:

Net income (in millions of euros)

Actual 31.12.2020

Actual 31.12.2021

Total Insurance - France

355

543

Total Insurance - International

10

41

Banking and financial businesses

(8)

62

Holding company activities

(107)

(99)

Goodwill impairment

(125)

Other

52

(54)

TOTAL NET INCOME - GROUPAMA

177

493

As a reminder, the impairment of goodwill in 2020 was mainly related to an impairment charge on the goodwill of the Italian subsidiary.

133

Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES