BPCE_REGISTRATION_DOCUMENT_2017

FINANCIAL REPORT BPCE parent company financial statements

3.3.3

Reclassification of assets

Reclassification owing to a change in intention (Provisions of CRB 90-01 prior to CRC 2008-17, replaced by ANC regulation No. 2014-07) BPCE has not reclassified any assets during the past two fiscal years. During fiscal year 2017, the sale and amortizationof held-to-maturitysecuritiesreclassifiedin 2015 as available-for-salesecuritiesrepresented a nominal amount of € 508 million.

EQUITY INTERESTS, AFFILIATES AND OTHER LONG-TERM INVESTMENTS 3.4

3.4.1

Changes in Equity interests, affiliates and long-term investments

31/12/2017

31/12/2016

Increase

Decrease Conversion Other changes

in millionsof euros

Equity interests and other long-term investments

3,052

994 198

(18)

(101)

69

3,996

Investments in affiliates

24,691

(107)

(14)

24,768

o/w current accountadvances& perpetual subordinated notes

2,041

890

(18)

(78)

2,835

Gross amount

27,743

1,192

(125)

(101)

55 11

28,764

Equity interests and other long-term investments

(401)

(11)

11

(390)

Investments in affiliates

(4,749)

(306)

508

(11)

(4,558)

o/w current accountadvances& perpetual subordinated notes

0

0

Impairment

(5,150) 22,593

(317)

519 394

0

(4,948) 23,816

TOTAL

875

(101)

55

5

Real estate companyshares are non-material. Otherlong-term investments includepartnerandassociation certificates for the Deposit Guarantee Fund for € 0.6 million. The principalinvestmentsin associates acquired in2017 included: acquisition of Crédit Logement shares ( € 103 million); ● subscription for the BPCE International capital increase ( € 100 ● million); subscription for the 3F Holding capital increase ( € 89 million); ● acquisitionof Sociétéd’ExploitationMABshares( € 9 million). ● The principal reductions in investments in associates executed in 2017 were: impairmentof BPCE ImmobilierExploitationshare acquisition( € 73 ● million); disposal of S-money shares ( € 16 million); ● liquidation of EuropayFrance shares ( € 11 million); ● disposal of Caisse d Refinancement del’Habitat shares ( € 5 million); ● disposalof UnionAssetManagementHoldingshares( € 1 million). ● Other changes mainly included: acquisitionof MFC Prou-Investissementsthrough the total transfer ● of assets and liabilities ( € 100 million); reductionin investmentsin associatesthrough the total transfer of ● the assets andliabilitiesof GCE Foncier Coinvest ( € 46 million). The main reversals of provisions for impairment in investments in

The main provisions for impairment in investments in associates included: BPCE International ( € 122 million); ● Crédit Foncier ( € 96 million); ● BPCE ImmobilierExploitation( € 59 million); ● Banque Palatine ( € 30 million). ● The principal increases in perpetual deeply subordinated notes BPCE’s major subsidiariesare valued based on multi-annualforecasts discounted according to expected dividend flows (Dividend Discount Model).The expecteddividendflowforecastsare basedon businessplans fromthe strategicplansof relevantentitiesand on reasonabletechnical parameters. Theprudentialconstraintsapplicableto relevantactivitiesare takenintoaccountduringvaluation. Valuations carried out during the closing of accounts for 2017 included: recognition of an additional € 122 million impairment on BPCE ● Internationalshares, taking the carryingamount to € 218 million at December31,2017; recognition of a € 452 million provision reversal on Natixis shares, ● taking the carrying amount to its gross value of € 15,269 million at December 31, 2017; recognitionof an additional € 96 millionimpairmenton CréditFoncier ● shares,taking the carryingamountto € 981 millionat December31, 2017; recognition of an additional € 30 million impairment on Banque ● Palatine shares, taking the carrying amount to € 800 million at December31,2017. The impairments are recognized under net gains or losses on other long-term investments. executed in2017 were: Natixis ( € 882 million). ●

associates were asfollows: Natixis ( € 452 million); ●

BPCE ImmobilierExploitation( € 56 million); ● Société d’ExploitationMAB ( € 1 million); ●

483

Registration document 2017