Groupama // 2021 Universal Registration Document

7 FINANCIAL STATEMENTS Combined financial statements and notes

Discounting rates have overall been held at their levels for the previous fiscal year, with identical target rates (8% for the Greek and Bulgarian subsidiaries, 10% for the Romanian subsidiary, 9% for the Hungarian subsidiary, and 8% for the Bulgarian subsidiaries). The growth rate used for valuation after the explicit period depends on market maturity. It is based on indicators resulting from strategic studies. The rates used for Western and Southern European mature markets are within the 1% to 3% bracket. In emerging markets with a low insurance penetration level this rate may be up to 4.5%. Ex-post comparative analyses of business plan data and actual data for the main income statement totals (combined ratio, underwriting income etc.) have been carried out and have had no impact on the impairment tests. Sensitivity tests have been carried out on the value in use applied, with the following change assumptions: rise of 100 basis points in the discount rate; and ❯ decline of 50 basis points in the long-term rate of growth. ❯ For CGU goodwill in Central and Eastern European countries, a combined increase of 100 basis points in the discount rate and yield rate would lead to a hedging surplus of €127 million (whereas a drop of 100 basis points would result in a hedging surplus of €182 million). On this same CGU, the sensitivity test on the long-term growth rate would result in a hedging surplus of €111 million if it fell by 50 basis points (the surplus would be €169 million with an increase of 50 basis points).

For the goodwill of the CGU of the Greek subsidiary, Groupama Phoenix, an increase of 100 basis points in the discount rate would lead to a surplus of €9 million (while a lowering of the discount rate by 100 basis points would result in a surplus of €72 million). The sensitivity test on a drop in the long-term growth rate of 50 basis points would result in a hedging surplus of €28 million (the surplus would be €42 million with an increase of 50 basis points). For the CGU of the Italian subsidiary Groupama Assicurazioni, the sensitivity test on an increase of 100 basis points in the discount rate would lead to a shortfall of €53 million, while a decrease of 100 basis points would result in a surplus of €337 million. The test on a decrease in the long-term growth rate of 50 basis points would result in a surplus of €66 million, whereas an increase of 50 basis points would give a surplus of €163 million. For the CGU of the French subsidiary, Gan Assurances, the sensitivity test on an increase of 100 basis points in the discount rate would lead to a shortfall of €65 million, while a decrease of 100 basis points would result in a surplus of €216 million. The test on a decrease in the long-term growth rate of 50 basis points would result in a surplus of €22 million, whereas an increase of 50 basis points would give a surplus of €90 million. The simultaneous occurrence of all adverse or favourable scenarios would have an impact nearly identical to the aggregate of the individual impacts.

Goodwill ‒ Broken down by cash-generating unit

2.2

31.12.2021

Foreign exchange adjustment

Gross value

Impairment

Net value

(in millions of euros)

Central and Eastern European countries

1,031

(502)

(219)

310

Italy

781

(228)

553

Turkey

262

(147)

(116)

Greece

131

(48)

83

Total International

2,206

(925)

(334)

946

Groupama Gan Vie

470

470

Gan Assurances

196

196

Financial businesses, property and other insurance companies

36

36

Total France and Overseas

701

701

CLOSING VALUE

2,907

(925)

(334)

1,648

173 Universal Registration Document 2021 - GROUPAMA ASSURANCES MUTUELLES