Groupama // Universal Registration Document 2022

6

EARNINGS AND FINANCIAL POSITION Cash and financing of the Group

6.4 CASH AND FINANCING OF THE GROUP

6.4.1

ISSUER’S FINANCING STRUCTURE

Cash and cash equivalents totalled €1,278 million as at 31 December 2022, down €100 million compared with 31 December 2021. The distribution of cash flows for fiscal year 2022 among the various business lines is as follows: operational business cash flows €759 million; ❯ investment, financial, and other business cash flows - €859 million; ❯ Total -€100 million. ❯

Debt totalled €2,135 million at year ‑ end 2022 for Groupama Assurances Mutuelles. Subordinated liabilities as at 31 December 2022 totalled €2,135 million, €3 million higher than as at 31 December 2021. 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 25.1% at the end of 2022, compared with 27.8% as at 31 December 2021.

31.12.2022

31.12.2021

(in millions of euros)

<1 year 1–5 years >5 years

Total

<1 year 1–5 years >5 years

Total

Subordinated debt of insurance companies

644 1,492 2,135

2,132 2,132

Financing debt represented by securities Financing debt with banking ‑ sector companies

2

2

TOTAL FINANCING DEBT

644 1,492 2,135

2

2,132 2,134

This 7 ‑ year bond has a fixed annual rate of 0.750%. As at 31 December 2022, this issue was quoted at 80.9% compared with 96.7% as at 31 December 2021. In view of the conditions specific to these issues and pursuant to IAS 32 sections 16 and 17, these four 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. This is a bond issued by Groupama Assurances Mutuelles on 28 May 2014 in the form of an indefinite ‑ term subordinated bond (TSDI) for a total nominal amount of €1.1 billion. Assets under management at end ‑ December 2022 amounted to €871.1 million following the redemption for €228.9 million in October. 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 2022, this TSDI was trading at 101.5%, compared with 113.0% on 31 December 2021.

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%. As at 31 December 2022, this issue was quoted at 104.3% compared with 122.8% as at 31 December 2021. 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%. As at 31 December 2022, this issue was quoted at 91.2% compared with 111.5% as at 31 December 2021. 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%. As at 31 December 2022, this issue was quoted at 84.0% compared with 103.1% as at 31 December 2021. The fourth bond was issued in the form of redeemable subordinated instruments (TSR) in July 2021 for a nominal amount of €500 million.

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES