Groupama // Universal Registration Document 2022

7

FINANCIAL STATEMENTS Combined financial statements and notes

31.12.2022

31.12.2021

Equities risk

Equities risk

+10%

-10%

+10%

-10%

(in millions of euros)

Impact on the revaluation reserve

208

(208)

222

(222)

Equities

101

(101)

91

(91)

Equity mutual funds

107

(107)

132

(132)

Bonds Fixed ‑ income mutual funds Derivative instruments and embedded derivatives Impact on net income

91

(91)

60

(60)

Equities

60

(60)

30

(30)

Equity mutual funds

32

(32)

30

(30)

Bonds Fixed ‑ income mutual funds Derivative instruments and embedded derivatives

3.3 3.3.1

Foreign exchange risk Exposure to foreign exchange risk

3.3.2 Managing foreign exchange risk Foreign exchange risk is hedged mainly through currency swaps and forward contracts. The documentation is updated each time the financial statements are closed. Some hedges qualify as hedges under IFRS, in particular the exposure to the Hungarian forint arising from the Group’s stake in OTP Bank. Exchange rate sensitivity analysis The following table shows the impacts on income and the revaluation reserve (posted under Group’s IFRS equity) of a sensitivity analysis carried out in the event of a 10% rise or fall in all currencies against the euro. The impacts are shown after taking the following factors into consideration: the rate of profit sharing of the entity holding the securities; ❯ the current tax rate. ❯ 3.3.3 In the 2022 fiscal year, the profit ‑ sharing rate used for entities holding life insurance commitments was in a range of 57.41% to 85.84%.

Exposure to foreign exchange risk for subsidiaries in the eurozone corresponds primarily to their assets subject to exchange rate fluctuations of mutual funds or securities denominated in foreign currencies and mutual funds denominated in euros applying to foreign ‑ currency securities. In practice, portfolios are mainly exposed to exchange risk involving the euro against the dollar, Hungarian forint, Romanian leu, Bulgarian lev, pound sterling, Turkish lira, and Croatian kuna. Investments made by Groupama, within the context of its international subsidiaries, expose it to the net accounting position of entities with a functional currency other than the euro. At this point, this means the Turkish lira, Hungarian forint, Romanian leu, Bulgarian lev, yuan, Croatian kuna, and Tunisian dinar. These impacts are posted in Group’s IFRS equity, under foreign exchange adjustment.

285

Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES