BPCE_REGISTRATION_DOCUMENT_2017

5 FINANCIAL REPORT

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

Sale of Sky Elite Tours Sarl BPCE International sold its stake in Sky Elite Tours Sarl in October2017. This disposal had nomaterialimpact onincome. Sale of Al Mansour Palace In July 2017, BPCE Internationalsold its stake in Al Mansour Palace. This disposal had nomaterialimpact onincome. Total transfer of the assets and liabilities of GCE Foncier Coinvest to BPCE SA Following the takeover by BPCE SA of Crédit Foncier’s stake in GCE Foncier Coinvest in the second quarter of 2017, this entity was absorbed by a total transfer of assets and liabilities with effect from December27, 2017. SECURITIZATION TRANSACTIONS 17.2 Securitization is a financial engineering technique that aims to enhance balance sheet liquidity. From a technical perspective,assets to be securitized are grouped according to the quality of the associated collateral or guarantees, and sold to special purpose entities that finance their acquisition by issuing securities underwrittenby investors. Entities created specifically for this purpose are consolidated if the Group exercises control over them. Control is assessed according to the criteriaprovidedin IFRS 10. Deconsolidating securitization transactions carried out with full or partial derecognition As a reminder, Crédit Foncier entered into two public securitizations backed by home loans (Crédit Foncier Home Loans No. 1 in May 2014 and Crédit Foncier Home Loans No. 2 in August2015). As a receivablesmanager, Crédit Foncier does not have the ability to use its power to influencethe variabilityof returns. Therefore,it does not control the securitizationfunds within the meaning of IFRS 10, and the funds are not consolidated. However, given its ongoing ties with CFHL-2, the criteria needed to establish full derecognition of assets under IAS 39 are not entirely met. As a result, the transaction is deconsolidating in accordance with IFRS10, and partially derecognized in accordance with IAS39. The transferredassets are recognizedin proportionto Crédit Foncier’s continuedinvolvement.As a result, the Group continuesto recognize the maximum loss associated with each of the residual ties to the fund (swaps, clean-up calls, management fees) in balance sheet assets. These adjustments led to the recognition of total assets of € 92 million and total liabilities of € 49 million at December31, 2017. The fair value of these residual ties is remeasured at each reporting date. For 2017, the net impact of the CFHL-2 transactions was - € 35 million,related to prepayments during the year.

The Group’s interest in Inter-Coop and Bati Lease stood at 71.02% and 68.73%respectivelyat December 31, 2017. The impact of this on equity attributable toequity holdersof the parent wasnot material.

Acquisition of a controlling interest in subsidiaries

Acquisition of PayPlug In 2017 Natixis finalizedthe acquisitionof PayPlug,in which it held a 78.54% interest as of December 31, 2017 and an option to buy the remainingshares by exercisingreciprocal put and call options. Natixis exercises control over this entity within the meaning of IFRS 10, and fully consolidates it. This transaction generated goodwill of € 14 million as at December31, 2017,as determinedusing the partial goodwill method. Acquisition of Dalenys In the fourth quarter of 2017, Natixis finalized the acquisition of 54.3% of Dalenys, via a subsidiary. Followingthis acquisition,a mandatorypublic bid was made for all of the outstanding Dalenys shares (the initial acceptance period ran from December11, 2017 to January22, 2018). Natixis, via its subsidiary,exercisescontrol over this entity within the € 72 million as at December31, 2017,as determinedusing the partial goodwill method. Acquisition of Althelia Ecosphère In 2017, Natixis finalized the acquisition of 51% of Althelia Ecosphère. As of December 31, 2017, Natixis exercises control over this entity within themeaningof IFRS10, and fully consolidates it. This transactiongeneratedgoodwill of € 3 million as at December 31, In 2017, Natixis, via one of its subsidiaries,acquired a majority stake (51.9%)in the AustralianinvestmentmanagementcompanyInvestors Mutual Limited (IML). It has the option to acquire the remaining shares byexercisingreciprocal put and call options. Natixis exercises control over this entity within the meaning of IFRS 10, and fully consolidates it. This transaction generated goodwill of € 100 million as at December31, 2017,as determinedusing the partial goodwill method. Sale of Ellisphère and its subsidiary IJCOF Corporate As part of the Corporate Data Solutions activities, Natixis sold Ellisphèreand its subsidiaryIJCOF Corporatein the first half of 2017. These entities had been treated under IFRS 5 since 2016 owing to ongoing negotiationsfor their disposal. The full sale of these entities outside the Group generateda capital gain (excludingthe tax impact) of € 21 million. meaning of IFRS10, and fully consolidates it. This transaction generated goodwill of 2017, as determinedusing the partial goodwill method. Acquisition of Investors Mutual Limited (IML) Other changes in scope

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Registration document 2017