EURAZEO_REGISTRATION_DOCUMENT_2017

CONSOLIDATED FINANCIAL STATEMENTS Statutory Auditors' report on the consolidated financial statements 4 Measurement of investments in associates – See Note 8.1 "Investments in associates" to the financial statements

Description of risk

How our audit addressed this risk

At December 31, 2017, investments in associates amounted to €1,375 million, equivalent to 12% of total assets, including €592 million attributable to Europcar, €202 million attributable to Elis, €186 million attributable to Trader Interactive, €124 million attributable to Neovia and €118 million attributable to Desigual. At year-end, when management identifies indications of impairment, a test is conducted to determine whether or not an impairment loss should be recognized. A proven or expected fall in EBITDA, or a negative change in one or more market inputs that could have an impact on the value of the investment, are indications of impairment. At December 31, 2017, the Group identified indications of impairment for its investment in Desigual. The impairment test resulted in the recognition of a €34 million impairment in relation to Eurazeo's investment in Desigual for the fiscal year. At December 31, 2016, an impairment of the investment in Europcar was recognized in Eurazeo's consolidated financial statements to adjust the cost price to €10 per share. This impairment was maintained at December 31, 2017. We deemed the measurement of Eurazeo's investments in Desigual and Europcar to be a key audit matter due to the level of judgment required from management to identify indications of impairment and to determine the recoverable amount of these investments as part of impairment tests.

Our audit approach focused on assessing the appropriateness of the analyses performed by management to identify indications of impairment and of the methods used to calculate this impairment. For Desigual, we assessed the methods and assumptions used for these impairment tests and the calculation of the recoverable amount of the investment. For Europcar, we examined the analysis performed by management justifying the absence of any additional indications of impairment at December 31, 2017. We assessed the appropriateness of the disclosures provided in Note 8.1 to the consolidated financial statements, "Investments in Associates"

Classification and measurement of financial assets – See Note 8.2 "Financial assets" and Note 16.8 "Financial assets and liabilities" to the financial statements

Description of risk

How our audit addressed this risk

At December 31, 2017, financial assets amounted to €1,527 million, or 13% of total assets. Following the early adoption of IFRS 9 on January 1, 2017, financial assets recognized at fair value through profit or loss amounted to €1,449 million. These assets included €877 million in investments quoted in an active market (investments in AccorHotels and Moncler). Their fair value is therefore determined on the basis of the last share price on the closing date. Financial assets relating to investments not quoted in an active market are measured at fair value in accordance with the recommendations outlined in the International Private Equity Valuation (IPEV) guidelines. This fair value is based on either observable data, i.e., the information made available by management (for the Colyzeo and Colyzeo II investment funds), or on the measurement methods used to determine the Net Asset Value (e.g., the multiples method). Based on the degree of judgment required from management to measure these assets, we deemed the classification and measurement of financial assets to be a key audit matter.

Our work primarily involved: For financial assets quoted in an active market, verifying the • consistency of the share prices used with observable market data; For the Colyzeo and Colyzeo II investment funds, verifying the • consistency of the fair value used with the latest information made available by management; For other financial assets relating to investments not quoted in an • active market, assessing the reasonableness of the key assumptions made for measurement purposes: For example, we analyzed the consistency of forecasts with past • performance and the market outlook. Where the fair value is determined in reference to similar recent transactions, we corroborated the analysis provided with available market data. We assessed the correct application of the choices made by • management, particularly the impact of the classification of its financial assets at fair value through profit or loss; Lastly, we assessed the appropriateness of the disclosures • provided in Note 8.2 to the consolidated financial statements, "Financial assets".

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2017 Registration document

Eurazeo