Groupama // 2021 Universal Registration Document

6 EARNINGS AND FINANCIAL POSITION Cash and Group financing

6.4

CASH AND GROUP FINANCING

6.4.1

ISSUER’S FINANCING

Cash and cash equivalents totalled €1,378 million at 31 December 2021, up €281 million compared with 31 December 2020. The distribution of cash flows for fiscal year 2021 among the various business lines is as follows: Operational business cash flows -€126 million ❯ Investment, financial, and other business cash flows €407 million ❯ Total €281 million ❯

STRUCTURE

On 7 July 2021, Groupama issued and placed its first subordinated green bonds with institutional investors for a total of €500 million. This inaugural issue maturing in 2028 with a coupon of 0.75% contributes to Groupama’s active capital management and to a growing market for green bonds. Debt totalled €2.134 billion at year-end 2021 for Groupama Assurances Mutuelles. Subordinated liabilities at 31 December 2021 totalled €2.132 billion, €0.500 billion higher than at 31 December 2020. The Group’s debt ratio is assessed at the combined scope level (ratio calculated according to the method chosen by our rating agency) and was 27.8% at the end of 2021, compared with 25.8% at 31 December 2020 ( pro forma data).

31.12.2021

31.12.2020

<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 Financing debt represented by securities Financing debt with banking-sector companies

2,132

2,132

1,632

1,632

2

2

3

3

TOTAL FINANCING DEBT

2

2,132

2,134

3

1,632

1,635

The “Subordinated debt” line comprises four issues of bond loans as follows: The first bond was issued in the form of redeemable subordinated 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 December 2021, this issue was quoted at 122.8% compared with 125.0% at 31 December 2020. The second bond was issued in the form of redeemable subordinated instruments (TSR) in September 2018 for a nominal amount of €500 million. This 10-year bond has a fixed annual rate of 3.375% for 10 years. At 31 December 2021, this issue was quoted at 111.5% compared with 112.5% at 31 December 2020. The third bond was issued in the form of redeemable subordinated instruments (TSR) in September 2019 for a nominal amount of €500 million.

This 10-year bond has a fixed annual rate of 2.125% for 10 years. At 31 December 2021, this issue was quoted at 103.1% compared with 104.2% at 31 December 2020. The fourth bond was issued in the form of redeemable subordinated instruments (TSR) in July 2021 for a nominal amount of €500 million. This 7-year bond has a fixed annual rate of 0.750% for 10 years. On 31 December 2021, this issue was trading at 96.7%. 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 subordinated instrument is recorded in equity instruments and therefore does not appear in the tables above.

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Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES

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