Groupama // Universal Registration Document 2022

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FINANCIAL STATEMENTS Combined financial statements and notes

(b) Valuation The cost of the property is the amount at which the property was recorded at the time of initial recognition, minus cumulative amortisation and corrected for any reserves for impairment. Acquisition cost of the property is the outcome either of outright acquisition, or acquisition of a company that owns the property. In the latter case, the cost of the property is equal to its fair value on the date of acquisition of the owner company. Each component is identified by its duration and depreciation rate. The residual value of the shell component cannot be valued with sufficient reliability, particularly given the uncertainties about the holding horizon; thus this component is amortised on the basis of the acquisition cost. Rent income is recorded using the straight ‑ line method over the term of the lease agreement. The market value of real estate investments is determined on the basis of an appraisal conducted at most every five years and reviewed annually by an independent expert. Real estate investments representing unit ‑ linked liabilities where the financial risk is borne by the policyholder are carried at fair value with changes in fair value recognised in the income statement Subsequent expenditure Subsequent expenditure must be added to the book value of the property: building shell (impairment period between 30 and 120 years); ❯ wind and watertight facilities (depreciation period between 30 and 35 years); ❯ heavy equipment (impairment period between 20 and 25 years); ❯ secondary equipment, fixtures and fittings (impairment period between 10 and 15 years); ❯ maintenance (impairment period: 5 years). ❯ if it is probable that these expenses will allow the asset to generate economic benefits; ❯ and these expenses can be reliably measured. ❯ (c) acquisition cost. The value of the property includes significant transaction costs directly attributable to the transaction, except in the specific case of investment property representing unit ‑ linked commitments that may be posted, by discretion, to income at fair value. When a real estate asset includes a portion held to produce rental income and another part used for production or administrative purposes, the asset is treated as investment property only if the latter is immaterial. At the time of initial recognition, property is subdivided by components and recorded separately. The impairment periods applied by the Group for each component depend on the nature of the property under consideration and are as follows:

(g) For investments valued at amortised cost, the amount of the reserve is equal to the difference between the net book value of the assets and the discounted value of the future cash flows expected, determined on the basis of the original effective interest rate of the instrument. The amount of the loss is included in the net income or loss for the fiscal year. The reserve may be written back through income. Derecognition Financial assets are derecognised when contractual risks expire or the Group transfers the financial asset. Gains or losses on the sale of financial investments are determined using the FIFO method, with the exception of securities carried by mutual funds. The method used for mutual funds is the weighted average cost method. Gains and losses from divestment are recorded on the income statement on the date of realisation and represent the difference between the sale price and the net book value of the asset. Investment property The Group has chosen to recognise investment property using the cost method. It is valued using the component approach. Initial recognition Lands and properties appear on the balance sheet at their 3.2.2 (a) Where such objective evidence of impairment is observed then the impairment amount corresponding to the difference between the acquisition cost and the fair value for that fiscal year, less any loss in value previously recognised through income, is automatically recognised in the income statement. These criteria may undergo changes over time, by applying good judgement, in order to take account of changes in the environment in which they were postulated. This should allow abnormal circumstances to be dealt with (such as a sharp and abnormal drop in net asset values on the balance sheet date). In addition, in all other cases in which these thresholds are not reached, the Group identifies securities in its portfolio constantly presenting a haircut between 20% and 40% over the last six months based on the level of volatility of the financial markets. For the thus separated securities the Group then carries out a review, based on its judgement, security by security, and decides whether to post an impairment through income or not. In the event that the financial management of a line of securities is done in a comprehensive manner at the Group level, even when these securities are held by several entities, the determination of whether objective evidence of impairment exists can be done based on the Group’s cost price. The impairment recorded on a Group’s IFRS equity instrument will only be reversed to income when the asset in question is sold. INVESTMENTS VALUED AT AMORTISED COST

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES