Groupama // 2021 Universal Registration Document

7 FINANCIAL STATEMENTS Combined financial statements and notes

distributing Group's equity and net income among the interests ❯ of the consolidating company and the interests of the holders of minority interests. Related companies and joint ventures (d) Investments in associates in which the Group has a significant influence and investments in joint ventures are accounted for under the equity method. When the combining company holds, directly or indirectly, 20% or more of the voting rights in an entity, it is assumed to exert significant control, unless it can be demonstrated otherwise. Conversely, when the combining company directly or indirectly owns less than 20% of the voting rights of the entity, it is assumed not to exert a significant influence, unless it can be demonstrated that such influence exists. A joint venture is a partnership in which the parties who exercise joint control over the entity have rights to its net assets. The combining company has joint control over a partnership when the decisions concerning the relevant activities of the partnership require the unanimous consent of the parties sharing control. The equity method consists of replacing the carrying amount of the shares held by the Group, with the share of Group's equity converted at year end, including the net income for the fiscal year in accordance with consolidation rules. Deconsolidation (e) When an entity is in run-off mode (no longer taking new business) and the main aggregates of the balance sheet or the income statement are not significant compared with those of the Group, this entity is deconsolidated. The securities of such entity are then posted on the basis of their equivalent value, under securities held for sale at the time of deconsolidation. Subsequent changes in values are recorded in accordance with the methodology defined for this type of securities. List of entities included in the scope of 2.3.2 combination and changes The list of the entities included within the combination scope of the Group’s financial statements and changes to that scope are described in Note 50 to the financial statements. Uniformity of accounting principles 2.3.3 Groupama Assurances Mutuelles’ combined financial statements are presented consistently for the entity formed by the companies included within the combination scope, taking into account the characteristics inherent in consolidation and the financial reporting objectives required for consolidated accounts (predominance of substance over form, elimination of local tax accounting entries).

Restatements under the principles of consistency are made when they are material. Conversion of financial statements 2.3.4 of foreign companies Balance sheet items are translated into euros (the functional and presentation currency of the Group’s financial statements) at the official exchange rate on the balance sheet date, with the exception of capital and reserves, excluding income, which are translated at historic rates. The Group share of the resulting unrealised foreign exchange adjustment is recorded under “Unrealised foreign exchange adjustments”, and the remaining balance is included in “Non-controlling interests”. Transactions on the income statements are translated at the average rate. The Group share of the difference between income translated at the average rate and income translated at the closing rate is recorded under “Unrealised foreign exchange adjustments”, and the remaining balance is included in “Non-controlling interests”. All transactions within the Group are eliminated. When these transactions affect combined net income, profits and losses as well as capital gains and losses are 100% eliminated then divided between the interests of the combining company and the non-controlling interests in the company having generated the net income. When eliminating losses, the Group ensures that the value of the disposed asset is not permanently changed. The elimination of impacts of internal transactions involving assets brings them down to their value when they entered the combined balance sheet (consolidated historical cost). Consequently, inter-company transactions on the following must be eliminated: reciprocal receivables and payables as well as reciprocal income ❯ and expenses; notes receivable and notes payable are offset but, if the ❯ receivable is discounted, the credit facility granted to the Group is substituted for the note payable; transactions affecting commitments received and given; ❯ inward reinsurance, outward reinsurance, and retrocessions; ❯ co-insurance and co-reinsurance operations and pooled ❯ management; broker and intermediation transactions; ❯ contractual sharing of premium income of group policies; ❯ reserves for the write-down of equity interests funded by the ❯ Company holding the securities and, if applicable, reserves for contingencies and charges recognised because of losses suffered by exclusively controlled companies; transactions on forward financial instruments; ❯ capital gains and losses from internal transfer of insurance ❯ investments; intra-Group dividends. ❯ Internal transactions between 2.3.5 companies combined by Groupama

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Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES