BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2017

PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS 5.13

12/31/2017

12/31/2016

Gross carrying amount

Accumulated depreciation and

Gross carrying amount

Accumulated depreciation and

impairment Net amount

impairment Net amount

in millions of euros

Property, plant and equipment land and buildings -

3,961

(2,001)

1,960

4,066

(1,996)

2,070

leased real estate -

579

(211)

368

526

(210)

316

equipment,furnitureand otherproperty,plant - and equipment

7,475

(5,342) (7,554)

2,133

7,448

(5,324) (7,530)

2,124 4,510

TOTALPROPERTY,PLANT ANDEQUIPMENT 12,015

4,461 12,040

Intangibleassets leasehold rights -

390

(213)

177 598 392

407

(219)

188 589 296

software -

2,757

(2,159)

2,660

(2,071)

other intangibleassets -

687

(295)

565

(269)

TOTALINTANGIBLEASSETS

3,834

(2,667)

1,167

3,632

(2,559)

1,073

GOODWILL 5.14 Goodwill relatedto operations for the financial year is analyzed inrespectof the note regarding the scopeof consolidation.

12/31/2017

12/31/2016

in millionsof euros

Opening netvalue

4,397

4,354

Acquisitions (1)

194

177

Disposals

(4)

Impairment (2)

(85)

(154)

Reclassifications

(24)

Foreign exchange rateadjustments

(202) 4,304

48

Closing netvalue

4,397

The main transactionsduringthe periodthat led to the recognitionof goodwillare as follows: (1) in accordancewith IFRS 3,“Businesscombinations”,analysisof the accountingtreatmentof the acquisitionof Fidorgroupwas finalizedin 2017.This analysisled to the recognitionof a haircuton a • portfolioof financialassetsfor -€52 millionnet of deferredtax assetsand liabilitiesand the recognitionof intangibleassetscoveringthe technologicalplatform,the brandand a majorcontractfor +€49 million net of deferredtax assetsand liabilities.Furtherto the analysis,goodwillon Fidorgroup,whichhad beenassessedon a provisionalbasisat the end of 2016,was adjustedby +€2 millionand amountedto €82 million; Natixis’acquisitionsof PayPlug(€14 million),Dalenys(€72 million),InvestorMutualLimited– IML (€100 million)and AltheliaEcosphere(€3 million). • Lossesfor the periodprimarilyconcernthe followingcash-generatingunits (CGUs):RegionalBanks (€17 million),BanquePalatine(€53 million)and BPCE International(€13 million).In 2016, (2) impairmentwas recordedon Coface(€75 million),BanquePalatine(€42 million)and the RegionalBanks (€35 million).

At December 31, 2017, gross goodwill stood at € 4,961 million and total impairment stoodat € 657 million. Certain goodwill items recognized in the United States gave rise to tax amortizationover 15 years, leading to a difference between the

carrying amount of the goodwill and its tax base. This difference in treatment generated a deferred tax liability of € 311 million at December 31, 2017, compared with € 530 million at December 31,

2016 (see Note5.9).

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Registration document 2017