EDR France RA EN 2019

Edmond de Rothschild (France)
2019 Annual Report

47, rue du Faubourg Saint-Honoré - 75401 Paris Cedex 08, France
Telephone: +33 (0)1 40 17 25 25
Fax: +33 (0)1 40 17 24 02
Telex: Lacof 280 585 - Swift: COFIFRPP
Website: www.edmond-de-rothschild.fr
A public company with executive and supervisory boards and capital of €83,075,820
Registered with the Paris trade and companies register under number B 572 037 026
NAF 2 business code: 6419 Z
Contents
Parent company
4 Shareholders’ letter 155 financial statements

and notes
Parent company balance sheet and
155
off-balance sheet items
7
156 Parent company income statement
Key figures Notes to the parent company
157
financial statements
7 Edmond de Rothschild Group 178 Parent company five year summary
9 Edmond de Rothschild (France)
179 Statutory
Auditors’ reports
20 Management report
192
13 Report of the Executive Board
Declaration of extra-financial Resolutions

43
performance
73 Report of the
Supervisory Board
Edmond de Rothschild Group
89 Consolidated financial
statements and notes
89 IFRS consolidated balance sheet
IFRS consolidated income

90
statement
Statement of comprehensive
91
income
92 IFRS cash flow statement
94 Statement of changes in equity
Notes to the consolidated financial

95
statements
Investments in
150
subsidiaries and associates
Companies
152
consolidated
ANNUAL REPORT 2019 | 3

Shareholders’ letter
The picture at the start of 2019 was very conviction that urban logistics need to be re-
gloomy, but the year ended on a much more engineered given the rise of online shopping.
positive note: markets posted strong gains, We manage a fund investing in affordable
although they were not justified given the housing in the United Kingdom, with a strong
slowdown in global growth and corporate commitment to social impact. We also
earnings. completed two significant real-estate purchases
in Berlin and London, where we will implement
The key event last year was probably the U-turn
ambitious urban regeneration strategies.
executed by central banks: they resumed rate
cuts and large-scale asset purchases, which Our BRIDGE infrastructure debt programme is
helped to paper over the weak economic continuing to achieve rapid growth in the green,
fundamentals. digital and social infrastructure segment. One of
its strategies has obtained the GreenFin label,
Slower US economic growth in a pre-election
recognising our commitment and credibility in
period, ongoing China-US tensions and
this area. In 2019, BRIDGE made 15 investments,
geopolitical concerns mean that central-bank
most of which have positive ratings in terms of
policies in both developed and emerging-
their carbon footprint impact. We played a
market countries should remain loose in 2020.
pioneering role in e-mobility investment as part
The coronavirus pandemic that began in of the Juncker plan.
January has fundamentally changed the
Our private equity platform also adopted a new
situation and cast a pall over what we hoped
strategy specialising in SME buyouts, closely
would be a fairly uncomplicated year. Aside
aligned with our entrepreneurial DNA. We want
from the markets’ abrupt response, the
to continue supporting the real economy with
pandemic is highlighting the large extent to
long-term solutions, and all of our 13 private
which US and European economic output
equity strategies will meet responsible
depends on unilateral decisions made by China.
investment criteria from this year.
For us as shareholders, 2019 was an important
In terms of liquid assets, we are continuing to
year, as our family took the decision to regain
hone our distinctive approach, concentrating on
full ownership of the Edmond de Rothschild
the strategies that represent our strengths.
Group. We firmly believe that this long-term
commitment made by our family will enable the Edmond de Rothschild was one of the first
Group to go further in realising our ambition of institutions to commit to socially responsible
setting the benchmark for conviction-driven investment (SRI) and develop its own internal
investment houses. ratings model. Having pursued that conviction,
we now manage CHF 10.7 billion of assets using
That ambition is shown by our developments in
responsible investment strategies. In 2019, our
the last few years.
Group became the first to obtain an SRI label in
Taking the view that tomorrow’s world is France for its global convertibles strategy. We
prepared today and that finance has a intend to continue the gradual shift towards SRI
responsible role to play, we have successfully strategies in the funds we manage.
developed our real-estate offering in recent
Our Private Bank is constantly in touch with
years, and we now have more than CHF16
families and entrepreneurs. We provide them
billion under management in this asset class.
with a unique service that delivers both financial
Our real-estate platform, Edmond de Rothschild returns and a positive impact on our world,
Real Estate Investment Management, has addressing the growing aspirations of our
renowned expertise and is attracting investors clients in this area. As a result, they have been
with strategies that address new ways of using able to capitalise on the deep-seated changes
real estate and meet the strictest environmental taking place in several sectors, for example
standards. For example, in 2019 we launched a through our Big Data fund which provides
pan-European theme fund based on the exposure to disruptive innovations, and our
PEARL private equity fund which invests in the
4 | EDMOND DE ROTHSCHILD (FRANCE)

areas of energy and environmental transition. returns and long-term social impact and its
Our SMART Estate real-estate fund, which unique human values.
repositions obsolete buildings by capitalising on
The way we carry out our various activities
new trends, has also been very popular with our
embodies those values and shows our long-term
private clients. Finally, we launched a new SRI
vision, our dedication to having a positive
mandate that addresses investors’ desire to
impact and our quest for excellence in
have a positive impact. This shift in our offering
everything we do.
is paying off through large money inflows,
particularly in France. We want to make 2020 a source of growth
opportunities for our clients, whom we thank for
In an industry undergoing far-reaching change,
placing their trust in us. We also thank our staff
in which technology is playing an increasingly
members for their dedication, and we want this
important role, we are more motivated than
year to be a source of motivation and
ever to make our conviction-driven investment
satisfaction for them.
house the benchmark in our sector – renowned
for its distinctive combination of financial
Ariane de Rothschild
Chairwoman of Edmond de Rothschild Group’s Board of Directors
Benjamin de Rothschild
Chairman of Edmond de Rothschild Holding’s
Board of Directors

Key figures
7 Edmond de Rothschild Group
9 Edmond de Rothschild (France)

Key figures
Edmond de Rothschild Group at 31 December 2019
Edmond de Rothschild: unique The Edmond de Rothschild Group

among banks today
The Edmond de Rothschild Group has a unique We provide a bespoke service for an international
position in the world of finance. We are fully in tune client base consisting of wealthy families,
with the new global landscape but, at the same time, entrepreneurs and major institutions.
we cultivate values that have fallen by the wayside at
many other banks.
Our lines of business
The family tradition gives us an acute sense of what
Private Banking
the “long term” means, as reflected in the way we
manage clients’ assets: creativity does not preclude Corporate Finance
cautiousness; and while our business may break new
ground, risk is always well managed. Asset Management
Private Equity
Private Banking and Asset Management are the
Real Estate
powerful engines that lie at the centre of everything
Institutional & Fund Services
we do, but we are also active in Corporate Finance,
Private Equity, Real Estate and Institutional & Fund
Services.
Our strengths
• The stability and solidity of an independent
financial group
• Unsurpassed attention to individual client needs
combined with global expertise
• Proactive teams that track and analyse the latest
economic developments and adjust our offerings
accordingly
• Access to a comprehensive range of financial
products and services
The Edmond de Rothschild Group in figures
CHF173 billion in assets under management (€160 billion)
22.7% FINMA capital adequacy ratio
2,600 employees at 31 December 2019

Key figures
Edmond de Rothschild Group at 31 December 2018
INTERNATIONAL REACH

Key figures
Edmond de Rothschild (France) at 31 December 2019
Shareholder base at 31 December 2019

Offices in France
Edmond de Rothschild (France) is wholly-owned by
Edmond de Rothschild (Suisse) SA.
France
Bordeaux, Lille, Lyon, Marseille, Nantes,
Total assets under management Paris, Strasbourg and Toulouse
In billions of euros
51,5 53,5 50,8
40,2 42,6
2015 2016 2017 2018 2019

Breakdown of assets managed by division and asset class (asset management subsidiaries)
Asset Breakdown of assets managed

breakdown by asset class (asset
Asset
Private
Managemen
Banking €16.6
t €34.2
billion
 Equities
 Convertible bonds
 Balanced (including funds of funds)
 Alternative management (hedge funds and funds of hedge funds)
 Private Equity
 Fixed-income products
 Structured investment products
 Cleaveland

Key figures
Edmon
Consolidated highlights (in millions of euros)
Balance sheet highlights 2017 2018 2019
Total assets 3,443 3,665 3,955

Equity attributable to equity holders of the parent* 349 352 381
Loans granted 673 766 877
Client deposits 1,418 1,585 1,604
The robustness of the banking group’s financial position is reflected in its capital ratios**. Its capital adequacy
ratio stood at 14.06% with its Tier One and Core Tier One ratios at 13.92% and 13.87%, respectively, at the end of
2019. The minimum regulatory requirement is 10.72%.
The Liquidity Coverage Ratio (LCR), which is the EU standard, stood at 170.02%, comfortably above the
minimum regulatory requirement of 100%.
Income statement highlights 2017 2018 2019
Net banking income 305 300 304

Gross operating income 36 35 39
Net income 25 33 16
of which attributable to equity holders of the parent 24 28 14
Average headcount (number) 777 789 783
* Excluding net income for the year.

** These ratios are calculated in accordance with prudential regulations on the basis of the consolidated equity of Edmond de Rothschild
(France).
Equity Net banking Gross operating income

attributable to income
In millions of euros
equity holders
of the parent* In millions of
Net income Average headcount

attributable to (number)
equity holders
of the parent
In millions of
euros

Management report
13 Report of the Executive Board
39 Internal control procedure applicable to accounting and financial information
40 Sustainable development report

Report of the Executive
Board
Risk aversion remained persistently high among our additional inflows. Our “liquid” Asset Management
clients, and that adversely affected our product mix, products suffered an outflow of close to €3.7 billion,
even though the markets performed very well in 2019. which chiefly affected our Long Only range. The same
This phenomenon followed on from the mounting risk aversion phenomenon was to blame for this trend.
fears of a possible recession that had overshadowed
late 2018. That said, the healthy performance of the markets
As a result, the Edmond de Rothschild (France) Group helped make up for these negative effects, and overall
posted net income attributable to equity holders of assets under management totalled €50.8 billion at 31
the parent of €14.4 million in the year ended 31 December 2019, stable at comparable structure
December 2019, a decline of €14.0 million on the compared with at the end of 2018.
€28.4 million reported for the year to 31 December
2018.
Sales and financial performance varied from one

division to another. Private Banking maintained its
first-class sales activity in France, generating
€1.3 billion in net new money, and also recorded
positive net inflows in Italy (€0.1 billion). Real estate
management recorded a €0.4 billion net inflow, while
Private Equity completed three fundraising
transactions, generating close to €90 million in
In thousands of euros 2019 2018 Change
Net banking income 303,631 299,950 1.2%

Operating expenses −264,919 −264,479 0.2%
- Personnel expense −151,979 −153,526
- Other operating expenses −85,241 −92,752
- Depreciation and amortisation −27,699 −18,201
Gross operating income 38,712 35,471 9.1%
Cost of risk −3 −336
Operating income 38,709 35,135 10.2%
Share in net income/(loss) of associates −105 3,203
Net gains or losses on other assets 1,211 6,286
Changes in the value of goodwill −8,105 −52
Income (loss) before tax 31,710 44,572 x0.7
Income tax −15,744 −11,292
Net income 15,966 33,280 x0.5
Non-controlling interest −1,590 −4,907
Net income attributable to equity holders of the parent 14,376 28,373 −49.3%
Non-recurring transactions - -
Reported net income attributable to equity holders of the parent 14,376 28,373 −49.3%
Cost/income ratio* 81.3% 82.1%

*Personnel expenses and other operating expenses as a percentage of net banking income (NBI).

Net banking income Operating income
Net banking income rose 1.2% compared with 2018 to With these trends in net banking income and
reach €300.4 million in 2019. The key factors operating expenses, gross operating income came to
contributing to this trend were: €38.7 million versus €35.5 million in 2018. As a result,
- management and advisory fees declined 9.1% as a the cost/income ratio improved by one point from 81%
result of the unfavourable shift in the product mix at year-end 2018 to 82%.
(introduction of MiFID 2 and clients’ aversion to
higher-risk products, causing margins to shrink) Consolidated operating income totalled €38.7 million
- €9.6 million in performance-related fees, up from versus €35.1 million in 2018, with a zero net cost of
close to €8.6 million in 2018 risk (€0.3 million in 2018).
- lower fees on transactions (transfers and front-
end charges) than in 2018 (€46.4 million versus
€56.9 million) after the 2019 pricing review Net income attributable to equity
- a €28.1 million increase in on-balance sheet
business as a result of the substantial dividend
holders of the parent
payouts into the investment portfolio, and
consistently firm performance by the lending The share in the net income of associates was zero (a
activities loss of €0.1 million after income of €3.2 million in
- a larger contribution (€20.5 million) to net 2018). Upbeat performance at Edmond de Rothschild
banking income from Corporate Advisory (Monaco) eclipsed the losses recorded by Asset
Services than in 2018 (€17.6 million) Management entities in which the Edmond de
Rothschild (France) Group owns shareholdings. Net
Gross margin edged higher to 60 basis points, up 1 gains and losses on assets totalled €1.2 million,
basis point versus 2018 thanks to a boost from reflecting the capital gain recorded after the capital
investment portfolio income. increase by Edmond de Rothschild (Monaco).
An impairment loss of €8.1 million was recorded on
the Cleaveland goodwill.
Operating expenses Non-controlling interest was lower in 2019, after

payouts into the ERES II fund in 2018.
Operating expenses totalled €264.9 million in 2019, Net income attributable to equity holders of the
stable versus their 2018 level (up 0.2%). parent totalled €14.4 million, down 49.3% on the
Personnel expenses came to €152.0 million, down 1.0% previous year.
relative to 2018.
Other operating expenses rose to €112.9 million, up
1.8% from the 2018 level.

Business trends and income by division
With an inauspicious regulatory environment for the Real estate management delivered fresh top-line
distribution of investment products and a high level of growth, despite the drop in the level of acquisitions as
risk aversion among our clients, net banking income a result of competitive market conditions.
from Private Banking in France and Italy declined. Private Equity made further investments in its ERES
Even so, the division’s gross operating income fell just franchise and launched two new franchises in 2019.
2.4% as it kept a tight rein on its expenses. Corporate Advisory Services also performed well, with
Asset Management (excluding real estate the business going from strength to strength. The
management) posted a €19.2 million fall in its gross team won a string of new mandates in 2019 and has
operating income following significant outflows of its established itself as a highly respected player in its
high-margin assets and pricing reductions in its market segment.
trading activities. Lastly, Other Activities were boosted by the large
distributions made by funds held in the investment
portfolio.
Overview of income and profitability by division

Other Activities and
Private Banking Asset Management Private Equity Group
Proprietary Trading
In thousands of euros 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
Net banking income 83,779 86,824 141,615 165,686 5,209 4,700 73,028 42,740 303,631 299,950
Operating expenses −81,002 −83,980 −133,623 −138,104 −6,273 −6,766 −44,021 −35,629 −264,919 −264,479
- Personnel expense −49,475 −52,115 −72,484 −77,334 −3,870 −4,611 −26,150 −19,466 −151,979 −153,526
- direct −35,613 −38,064 −54,063 −57,787 −3,289 −4,066 −19,042 −14,204 −112,007 −114,121
- indirect −13,862 −14,051 −18,421 −19,547 −581 −545 −7,108 −5,262 −39,972 −39,405
- Other operating expenses −24,105 −25,309 −51,945 −51,951 −2,212 −1,993 −6,979 −13,499 −85,241 −92,752
- Depreciation and
−7,422 −6,556 −9,194 −8,819 −191 −162 −10,892 −2,664 −27,699 −18,201
amortisation
Gross operating income 2,777 2,844 7,992 27,582 −1,064 −2,066 29,007 7,111 38,712 35,471
Cost of risk - - - - - - −3 −336 −3 −336
Operating income 2,777 2,844 7,992 27,582 −1,064 −2,066 29,004 6,775 38,709 35,135
Share in net income/(loss) of 7,571 7,045 −7,676 −3,800 - - - −42 −105 3,203
associates
Net gains or losses on other - - - - 1 - 1,210 6,286 1,211 6,286
assets
Changes in the value of
- - −8,105 - - −52 - - −8,105 −52
goodwill
Income (loss) before tax 10,348 9,889 −7,789 23,782 −1,063 −2,118 30,214 13,019 31,710 44,572
Cost/income ratio* 87.8% 89.2% 88.5% 78.0% 116.8% 140.5% 57.3% 77.1% 81.3% 82.1%
* Personnel expenses and other operating expenses as a percentage of net banking income (NBI).

Private Banking
……………………………………………………………………………………………………………………………………………
Highlights of 2019
• Record net inflows of €1.346 billion
• €15.268 billion in Private Banking assets under management
……………………………………………………………………………………………………………………………………………
Private Banking is the original business of the Edmond The establishment of a group-wide Wealth Solutions
de Rothschild Group. Edmond de Rothschild aims to unit charged with expanding the range of advisory
support its clients pro-actively, planning ahead to services and solutions we provide to our private clients
meet their every need. Private Banking has built a helped power this performance. The unit’s goal is to
practical range of products and services firmly meet all our private clients’ needs in (i) wealth
grounded in the real economy and aligned with engineering, (ii) the research and distribution of
entrepreneurs’ concerns. conviction-based investment and financing
In France, it is able to devise bespoke solutions and opportunities in real estate and private equity, and
marshal expertise to support its clients at every stage (iii) specialised advice (philanthropy, art, etc.). It also
in the wealth engineering process. Edmond de oversees dedicated projects for this demanding client
Rothschild can tap into a specialist range of group.
investments, advice and services, ranging from M&A In the current environment, real estate assets remain
transactions and financial planning to portfolio highly prized by private clients. The roll-out of the
analysis, and advice on life insurance. For those selling Bank’s advisory services in this area continued during
a family-owned company, it knows how to deftly the year. They are delivered by a team of experts
address inheritance issues. All this expertise is co- within Edmond de Rothschild Corporate Finance,
ordinated by the private banker – the lynchpin of the which handles sales and acquisitions of real estate
client relationship – who produces a strategic asset portfolios. The Edmond de Rothschild Immo Premium
allocation based on a holistic view of the client’s fund, an OPCI (collective undertaking for real estate
portfolio. investments) aimed at private clients, continued to
grow, with its assets now exceeding €150 million. It
met its performance targets and completed several
Inflows racing higher acquisitions in 2019.
Private Banking also continued to expand its range of
In spite of mounting geopolitical and trade tensions lending solutions judiciously to accommodate the
around the world, the financial markets kept moving borrowing needs of its private clients wherever
higher throughout 2019. Buoyed by increasingly possible. Its lending broke through the €1 billion
accommodative monetary policies, they ended the barrier in 2019 (€1.1 billion).
year with record gains of 20% to 30%. That was not
sufficient to tempt investors back into the equity
markets, with volumes waning and clients maintaining Greater transparency for clients
a fairly defensive stance amid a backdrop of negative
interest rates. In this almost unprecedented The Bank had carefully planned ahead for the
environment, the Bank provided steadfast support to introduction of the new fee transparency rules laid
its clients, helping them to achieve their goals of down in MiFID 2. It helped its clients to navigate their
protecting and growing their portfolios. way through the transition, making sure they are
Sales activity held up at a high level at all our offices in properly able to understand all the information they
France. Our Private Banking division achieved a record now receive.
net inflow of €1.346 billion in 2019.
Service offering focused on

entrepreneurs
Entrepreneurs are one of Private Banking’s leading

Bespoke range of advisory services
areas of growth in France. Their needs are well-
and investment solutions
catered for by Edmond de Rothschild’s offering, which Lastly, several partnerships were established in 2019
consists of a wide range of capabilities geared to SMEs to raise the Bank’s profile and achieve higher
and their managers, such as consulting, M&A, financial recognition rates among tech entrepreneurs. Edmond
and wealth engineering, and private equity. To meet de Rothschild decided to endorse the Galion Project’s
their appetite for investing in physical assets, Edmond White Paper, which resonates with the Bank’s
de Rothschild has built a diversified private equity and longstanding commitment in this area.
real estate offering. Synergies with the corporate
finance team also make it possible to provide tailored
solutions for buyouts, capital raising and acquisitions.
Breakdown of Private Banking results
Net banking income 83,779 86,824 −3.5%

Operating expenses −81,002 −83,980 −3.5%
. direct −35,613 −38,064
. indirect −13,862 −14,051
Gross operating income 2,777 2,844 −2.4%
Cost of risk - -
Operating income 2,777 2,844 −2.4%
Share in net income/(loss) of associates 7,571 7,045
Net gains or losses on other assets - -
Changes in the value of goodwill - -
Income (loss) before tax 10,348 9,889 4.6%

Private Banking recorded €2.8 million in gross
operating income, which was stable compared with
Net banking income the 2018 level.
The cost/income ratio improved relative to 2018,
Private Banking’s sales performance held up at a high falling to 87.8% as a result of the tight grip on
level in France, while the recruitment of new bankers expenses.
gave top-line trends fresh impetus in Italy. Even so, As in previous years, the cost of risk was very low
revenue was hit by an unfavourable product mix. indeed, reflecting the high quality of the division’s loan
commitments and its risk management.
Private Banking net banking income came to
€83.8 million in 2019, down 3.5% versus 2018.
Excluding changes in scope linked to the creation of Income (loss) before tax
the Private Banking Investment Advisory (PBIA)
department during 2018, net banking income was Including the contribution from Edmond de Rothschild
stable (down 0.4%) against a backdrop of downward (Monaco), which was higher than in 2018, Private
pressure on margins. Banking’s income before tax totalled €10.3 million in
2019.
The key contributory factors were as follows:
In France:
- management and advisory fees dropped 7.0%
relative to 2018 (down 2.9% excluding PBIA)
reflecting an unfavourable asset mix caused
by clients’ risk aversion
- fees on transactions dropped 10.8% relative to
2018, as the start of 2018 had been boosted
by substantial movements triggered by the
PBIA department’s efforts to make portfolios
more uniform
- the firm performance in lending generated
€12.2 million in on-balance sheet revenue,
27.7% ahead of the 2018 level
In Italy, business continued to decline as a result of

competitive pressure despite the investments made in
recent years.
Overall, Private Banking net banking income

accounted for 27.6% of consolidated net banking
income in 2019, just below the 29.0% recorded in 2018.
Operating expenses
Private Banking operating expenses totalled

€81.0 million in 2019, 3.6% below their 2018 level.
Personnel expenses in Private Banking came to
€49.5 million, a reduction of 5.1% relative to 2018.
Other expenses declined 1% relative to 2018 as
management kept a tight grip on budgets.
Operating income

Asset Management
……………………………………………………………………………………………………………………………………………
Highlights of 2019
• €33.528 billion under management
• Organisational changes plus a roadmap for the period out to 2022
• Acquisition of an investment rounding out existing solutions
• Exciting developments in several areas of specialisation
……………………………………………………………………………………………………………………………………………
The whole philosophy behind Edmond de Rothschild’s A roadmap for the period out to 2022 was drawn up
Asset Management range is to offer its clients active, during the year. It presents the core areas of expertise,
conviction-driven management. Edmond de which the Asset Management division wishes to
promote and which will be at the forefront of all its
Rothschild Asset Management strives to outperform
efforts.
index-tracking products by focusing on value creation
European equities and theme-based investing will be
over the long term by taking clear views.
the main focus of attention in equities. Theme-based
The range of solutions available from Edmond de debt investing (emerging and financial in particular)
Rothschild Asset Management comprises investment will also be part of this development plan, together
funds and managed accounts for institutional with asset allocation, an area in which the Asset
investors, together with open-ended UCITS marketed Management division possesses cutting-edge
expertise.
to private clients by partner financial institutions
(private banks, investment companies and insurers) SRI takes pride of place in this approach – right across
the board – building on the strong commitment it has
and independent financial advisors.
been given since 2007.
Risk Management solutions and quantitative
management also feature on the roadmap, helping us
Organisational changes and an to meet our clients’ steadily growing and personalised
ambitious roadmap needs.
.
Asset Management made several changes to its
organisation structure in 2019. In March, Christophe
Caspar took over as Head of Asset Management from Several key accomplishments
Vincent Taupin, following the latter’s appointment as
CEO of the Group. In June, a new Asset Management
despite headwinds for active
organisation headed up by Benjamin Melman, Global management
Chief Investment Officer, was unveiled.
The division’s new structure features four units: Emerging market debt has been one of Edmond de
› Michaël Nizard took over responsibility for the Rothschild Asset Management’s conviction-driven
asset allocation and sovereign debt team priorities for several years. This specialised unit went
› Christophe Foliot and Jacques-Aurélien from strength to strength in 2019. The EdR Fund
Marcireau took charge of the equity investment teams Emerging Credit fund won several accolades and
generated inflows in excess of €200 million, while EdR
› Alain Krief joined the Edmond de Rothschild
Fund Emerging Sovereign, the latest addition to the
Group to run the fixed-income team
range, had almost €200 million under management by
› Lastly, Jean-Philippe Desmartin remained in the end of the year, even though it was only launched
charge of the SRI unit, with an overarching approach in late 2018. Conversely, the EdR Fund Emerging
spanning all asset classes. Bonds sovereign debt fund underperformed in 2019
Asset Management’s teams were boosted by several and suffered a net outflow of over €100 million.
new arrivals to develop its management capabilities, Further developments concerning the range of funds
including analysts specialised in certain market managed by Edmond de Rothschild Asset
segments. Management included:
Changes were also made to management of the EdR • Launch of the EdR SICAV US Solve fund:
Fund Bond Allocation fund. The two managers in building on the success of the EdR SICAV Europe
charge of the bond allocation fund left the Solve fund launched in 2015 and attracting strong
management company in July, and they were replaced
interest from institutional investors, Edmond de
by seasoned bond market veterans Nicolas Leprince
Rothschild Asset Management’s teams wanted to
and Julien Tisserand.
expand this area of expertise by establishing a new

“protected equity” fund, this time in the US equity charge of the Group’s three specialist real estate
universe. The fund generated over €200 million in net subsidiaries. In 2019, the real estate platform pressed
inflows by year-end 2019. ahead with its development and is poised for a major
step forward with the introduction of a unified brand:
• A new term fund: marketing of the Millesima
Edmond de Rothschild Real Estate Investment
2024 was completed in 2019, and this was followed in Management (REIM).
the second half by the launch of Millesima 2026, an
Edmond de Rothschild has grown its real estate asset
eighth term fund, to meet investor interest in this type
management business through a series of selective
of solution against the backdrop of a low interest rate acquisitions. Cleaveland, a French business founded in
environment. France in 2005, was acquired by Edmond de
The equity range recorded substantial net outflows in Rothschild in 2016. It is currently led by François
2019, especially European equities, mirroring the Grandvoinnet, its chairman, who joined the group in
general trend across Europe, with the major active late 2019.
equity managers haemorrhaging assets. Several The subsidiary also promoted two other managers to
changes to the product range were planned, and these senior positions last year, with Lyes Badji taking over
are expected to come to fruition in 2020. Despite this as Chief Executive Officer and Clément Brazy as Chief
Financial Officer. The EdR Immo Premium fund
adverse trend, one fund stood out: EdR SICAV Euro
generated impressive net inflows to end the year with
Sustainable Growth, a European equity SRI fund,
over €150 million under management. The fund made
which recorded over €200 million in inflows, lifting its several acquisitions despite tight market conditions. In
assets under management above €400 million at year- addition, the number of alternative investment funds
end 2019, up from €150 million one year earlier. managed by Cleaveland rose again.
SRI investing was a key focus during 2019. Towards
the end of the year, a third open-ended fund gained a
quality label (EdR Fund Global Sustainable
Convertibles), as the Asset Management division
pushed ahead with its SRI initiatives.
Lastly, the BRIDGE infrastructure debt platform again
ended the year on a high note. BRIDGE IV, the latest
generation launched in April 2018, generated a total of
€1.25 billion in inflows over the period, lifting the
platform’s assets under management to €2.6 billion. A
new vehicle is being readied for launch in 2020.
Awards received in 2019

Edmond de Rothschild Asset Management and its
funds gained a number of French and European
accolades.
• Quantalys Awards: best fixed-income range
(European companies managing over €5 billion in
assets)
• Grands Prix de l’AGEFI: Equilibre Discovery
(European diversified category) and EdR Fund
Emerging Credit (emerging market bonds category)
• Thomson Reuters Lipper Fund Awards 2019:
EdR Fund Emerging Credit, best fund over 3 and 5
years (awards for Europe, France, Switzerland,
Austria, UK, Germany, Netherlands).
Major leap forward anticipated in

the real estate platform in 2020
In 2018, Edmond de Rothschild combined its private

equity, real estate and asset management platforms to
form a seamless investment offering spanning all asset
classes. A unified management team was placed in
Breakdown of Asset Management results
Net banking income 141,615 165,686 −14.5%

. direct −54,063 −57,787
. indirect −18,421 −19,547
Gross operating income 7,992 27,582 −71.0%
Cost of risk - -
Recurring operating income 7,992 27,582 −71.0%
Share in net income/(loss) of associates −7,676 −3,800
Net gains or losses on other assets - -
Changes in the value of goodwill −8,105 -
Income (loss) before tax −7,789 23,782 −132.8%

slightly, for exactly the same reasons as those

affecting the core asset management
Net banking income business. Net banking income contracted 9.8%.
In addition, the results recorded by this
Assets under collective management totalled €33.5 business in the previous year had been
billion at year-end, just above the level recorded at boosted by performance-related fees, which
year-end 2018 after adjusting for the impact of were not repeated in 2019. Overall, Asset
changes in scope. Management net banking income in Italy
Despite significant outflows affecting the equity declined 25.7%.
(€1.7 billion) and asset allocation ranges (€1.4 billion),
the overall level of assets under management held up
thanks to the upbeat performance of the markets in
2019.
The division’s average assets under management

moved up 4.2% on the back of growth in real estate
assets under management. Net banking income trends
varied from one business to another:
- in liquid product asset management
(excluding real estate), net banking income
declined 15.2% as a result of the adverse
impact of the fall in higher-margin products
under management and the pricing reductions
introduced on trading activities.
- in real estate management, average assets
under management rose 23.0%, driving growth
of 15.9% in volume-related income. The
acquisition business recorded a small decline
(3.8%), however. Overall, real estate net
banking income grew 8.2%.
- The pace of growth in the asset management
fund distribution business in Italy slowed

Income (loss) before tax
Operating expenses
In 2019, the contribution from associates came under
heavy pressure as a result of the losses recorded by
Operating expenses were cut by 3.2% from
ERAAM and Zhonghai FMC, in which the Group owns
€138.1 million in 2018 to €133.6 million in 2019.
shareholdings. The Asset Management division’s loss
Personnel expense totalled €72.5 million, which was
before tax was €7.8 million, versus income before tax
6.3% lower than in 2018.
of €23.8 million in 2018.
Asset Management’s other operating expenses came
to €61.1 million, representing a small increase (up
Calculated on the basis of management fees
0.6%) between 2018 and 2019.
(excluding performance-related fees), the margin was
36 basis points, down 8 basis points from its 2018 level
of 44 basis points.
Operating income
Gross operating income declined to €8.0 million in

2019 from €27.6 million in 2018 as a result of the
trends presented above.
The division’s cost/income ratio rose to 88.5% from
78.0% in 2018.

Private Equity
……………………………………………………………………………………………………………………………………………
Highlights of 2019
• Successful fundraisings by Privilège 2018 (second FPCI [private equity fund] and SICAR [risk capital
investment company] closing, €102 million), Kennet V (final closing, €22.8 million) and Transmission et
Croissance I (first closing, €28.8 million)
• Two disposals by ERES II, two acquisitions by ERES III, Privilege 2018 and Kennet V gain traction
……………………………………………………………………………………………………………………………………………
We continued to grow our private equity offering market companies that have established leadership in
throughout 2019 and launched various new products a niche market are its investment focus.
and services enabling all our (private and institutional)
GHO Capital is a pan-European asset manager
clients to benefit from this asset class.
specialised in the healthcare sector. It targets
Private equity dovetails perfectly with our overall untapped market opportunities across the pharma,
strategy as it involves making investments firmly medtech and outsourced services sectors.
grounded in the real economy. By doing so, we are
Palladium Equity is a US asset manager active in
able to align our investment, social and environmental
buyout capital that specialises in midsize family-held
performance.
businesses. It operates across the industrial and
This year we strengthened the capabilities of our consumer goods sectors, and has a strong track
private equity platform in pursuit of our goal of record of serving Hispanic-American clients in the
supporting the growth of visionary SMEs right around United States.
the globe. Two new strategies were launched, and so
A&M Capital is an asset manager specialised in
we now have 13 niche investment strategies across
business transformation for midsize European
multiple geographical regions and sectors.
companies looking to raise their operating
In France, our minority investment and fund of funds performance.
activities also contributed significantly in 2019 to the
The final closing for the Privilège 2018 funds is
success of our private equity platform.
scheduled for March 2020.
Funds of funds: spectacular growth Rock-solid strategy in minority

Fundraising by Privilège Access, our external fund of
investment funds
funds vehicle, went from strength to strength. It raised
€46.2 million for the Privilège 2018 FPCI and The ERES II FPCI funds again delivered healthy
€56.2 million for the Privilège 2018 SICAV RAIF, both performances in 2019. Two liquidity events played a
managed by EdR Private Equity France. key role in this:
Preparations for the launch of two new vehicles were - Worley Claims Services (US insurance
also made during 2019. All in all, seven deals were specialist). In the past four years, Worley has
completed, with five primary investments in Lee radically strengthened its position. It has
Equity Partners, Lovell Minnick, GHO Capital Partners diversified its revenue streams, appointed a
II, Palladium Equity V and A&M Capital Europe I and new management team, achieved fresh
two secondary investments in McLarens (alongside commercial impetus, repositioned itself in
ERES III) and Kymera (part of ERES III’s portfolio since more recurring activities, and made
2018). infrastructure investments. That made it a
highly attractive target for US fund Kolhberg &
Lee Equity Partners is a growth capital manager active
Co.
in the services sector, with a focus on the healthcare,
- Socotec, one of the French leaders in testing,
finance and B2B industries in North America. It targets
inspection and certification, as part of a
businesses with high-growth potential and aims to
secondary LBO (33% stake). After adopting a
make operational efficiency improvements.
more international approach and appointing a
Lovell Minnick Partners provides buy-out capital and new management team, Socotec attracted
specialises in financial services in the United States interest from a variety of investors following a
and, where opportunities arise, in Europe, too. Middle-

competitive sale process won by Clayton, This fund, the first arising from the link-up between
Dubilier & Rice, Edmond de Rothschild Private Equity and Trajan
Capital, is based on the search fund model that has
gained real traction in North America.
The ERES III funds also made two investments in 2019
in ASL Aviation Holding and in McLarens. The fund aims to maintain the independence of the
French SMEs by supporting a fresh generation of
ASL is Europe’s leading express air freight operator. It
entrepreneurs as they take on leadership roles and
provides contract air transportation for express
gradually raise their holdings in these companies’
couriers, postal services, freight operators, passengers
capital.
and charter services. ASL also operates in the aircraft
leasing market, chiefly to support its own activities, The teams of Trajan Capital and Edmond de
and it has a controlling interest in FlySafair, South Rothschild Private Equity aim to build a pool of around
Africa’s second-largest low-cost airline. a dozen managers who are looking to take on
leadership roles. These managers will be supported
McLarens Global Limited is a global leader in claims
and guided through the process of searching for
process management (loss adjustment), working
acquisition targets, analysing opportunities and
alongside insurance companies, brokers and insured
structuring deals.
companies. It is the only global expert in the
settlement of complex claims and boasts leadership The Transmission & Croissance 1 FPCI fund, which
positions in the aviation, agriculture and commercial aims to raise between €120 million and €150 million in
real estate sectors. funds, will provide the capital required to establish
majority shareholdings and pursue the development of
the portfolio companies. It raised €28.8 million by its
first closing on 30 December 2019, but had not made
any investments by year-end 2019.
Positions in the tech sector

expanded further
Kennet V FPCI is a fund that invests in parallel with

Kennet V SCSp, a Luxembourg-registered fund, in
high-growth tech businesses, mostly in the United
Kingdom. The fund is managed under a delegated
investment management agreement with UK-based
Kennet Partners. The Kennet V FPCI fund completed a
final €22.8 million closing in October 2019 (Kennet V
SCSp had raised €170.7 million at 31 December 2019).
It made three investments in 2019: Social Survey,

Eloomi, and Spatial Networks.
Social Survey is software used to take the pulse of

customer satisfaction by gathering feedback and level
of satisfaction concerning the services provided by an
organisation’s employees.
Eloomi provides SaaS (software as a service) learning

and performance management services for businesses
with 500 to 10,000 employees.
Spatial Networks supplies geospatial intelligence

solutions by harnessing its mobile data collection
platform and a global network of geospatial industry
professionals.
Transmission & Croissance: a

private equity fund specialised in
buyouts of French SMEs

Breakdown of Private Equity results

. direct −3,289 −4,066
. indirect −581 −545
- Depreciation and amortisation −191 −162
Gross operating income −1,064 −2,066 −48.5%
Cost of risk - -
Recurring operating income −1,064 −2,066 −48.5%
Share in net income/(loss) of associates - -
Net gains or losses on other assets 1 -
Changes in the value of goodwill - −52
Income (loss) before tax −1,063 −2,118 −49.8%
Net banking income Operating income
The continuing expansion in funds of funds provided The stronger top-line performance and tight control
another boost to Private Equity net banking income in on expenses helped to halve the size of the operating
2019, which was €0.5 million higher than in 2018. loss relative to 2018.
Operating expenses Income (loss) before tax
Operating expenses declined 7.3% relative to 2018 Private Equity posted a loss before tax of €1.1 million,
when they were inflated by the expenses incurred in versus a loss of €2.1 million in 2018.
setting up the platform in France.

Other Activities and Proprietary Trading
CORPORATE ADVISORY SERVICES
……………………………………………………………………………………………………………………………………………
Highlights of 2019
• Excellent year with 33 transactions advised on and record deal sizes
• Brisk activity levels in the healthcare and real estate sectors
• Ramp-up in tech and digital to raise the division’s market profile
• Strong revenue growth
……………………………………………………………………………………………………………………………………………
Advising owner-managers, family-controlled

companies and financial investors is a long-standing As in the previous year, real estate was a major
cornerstone of the Group’s activities and a distinctive revenue source for the M&A business, generating six
feature of its business model in France. It stands out deals. Edmond de Rothschild Corporate Finance
from its direct rivals thanks to its ability to offer its advised Eurazeo Patrimoine on the acquisition of a
entrepreneurial clients a one-stop shop for wealth minority shareholding in the Emerige group, Valeur et
engineering, M&A advisory and private banking Capital shareholders on the sale of a majority
solutions. Edmond de Rothschild advises shareholding to Montefiore, and STAM on the sale of
entrepreneurs and families, as well as financial the group to Corestate.
investors and industrial groups, on capital transactions
Harnessing its expertise to good effect, Edmond de
related to their industrial, commercial and real estate
Rothschild Corporate Finance completed six
assets. The business also enables the Group to offer
transactions in 2019 in healthcare and health services,
asset diversification solutions to family-office
an attractive sector characterised by lofty valuations.
investors.
That brought the total since 2016 to over 30 deals. The
The team focuses on the small- and mid-cap market Lyon team played a full part in this impressive
segment (i.e. deal sizes ranging from €10 million to performance, advising on three of the six deals in the
€500 million). Its independence, lack of conflicts of healthcare sector in 2019. The sale of Domidep will
interest and unique deal-making experience with remain the landmark deal of the year – and not only
family-owned firms to support clients in France and because of its size. It was the 14th completed with the
abroad are what sets it apart from its rivals Domidep group over 11 years, illustrating the
corporate finance team’s ability to support clients over
the long term and through every stage in their
Breakthrough in tech and strong development.
reputation in healthcare and real Lastly, the team capitalised on the breakthroughs it
estate has made in the tech and digital sector during 2019
and was rated second in the top 10 ranking of
investment banks in the sector in France2. Its
Unlike the market for major deals in which volumes
impressive accomplishments included an exceptional
may vary significantly from one year to the next, the
double deal in 2019 with CLS and its Kineis subsidiary
midcap market maintained its momentum1.
(monitoring via nano satellites to study and protect
The 33 deals handled by the team are a testament to
the planet and manage its resources sustainably),
the more rapid pace of development in this business,
clearly resonating with the Edmond de Rothschild
the ramp-up in the Lyon team, which joined Edmond
Group’s commitment in this area.
de Rothschild in 2018, and the improvements made to
its internal organisation structure in recent years. The
M&A business had the wind in its sails during 2019, as
reflected by the number of primary deals with private
banking and the ramp-up in deals with investment
funds.

Increasingly ambitious objectives
A new manager and two analysts were also hired

during 2019 to continue scaling up the organisation in
line with its plans to grow and develop the business.
Even closer ties with Private Banking were forged this
year. The sale of a stake in Coutot-Roerig, European
leader in identifying heirs and beneficiaries, was
completed by harnessing the significant synergies with
the Private Banking teams and will be remembered as
one of the year’s landmark transactions.
In 2020, Edmond de Rothschild Corporate Finance
intends to continue its development by participating in
a growing number of market transactions, to build on
its momentum from 2019. The main development
drivers for 2020 will be acquiring specialised industry
expertise, increasing so-called primary deals in
synergy with Private Banking and establishing a
stronger position with investment funds.
1 Source: 10 January 2019 edition of L’Agefi Hebdo newspaper no. 642-643 – M&A
rankings – page 28
2 Source: CF News Magazine, no. 21 of February 2020, p 32
Breakdown of Other Activities and Proprietary Trading results

Operating expenses −44,021 −35,629 23.6%
. direct −19,042 −14,204
. indirect −7,108 −5,262
Gross operating income 29,007 7,111 ns

Cost of risk −3 −336
Operating income 29,004 6,775 ns

Share in net income/(loss) of associates - −42
Net gains or losses on other assets 1,210 6,286
Changes in the value of goodwill - -
Income (loss) before tax 30,214 13,019 ns

Corporate Advisory Services
Corporate Advisory Services again clinched a series of
Net banking income impressive deals in 2019.

Its net banking income came to €20.5 million, up
€2.9 million on 2018.
Operating expenses
Proprietary Trading
Proprietary Trading’s net banking income came to Corporate Advisory Services
€52.5 million, up €27.4 million relative to 2018. Gains Operating expenses rose 36.3% relative to 2018,
on the investment portfolio amounted to €47.4 million, reflecting the addition of the new team in Lyon and
including €43.6 million in realised capital gains and the level of net banking income generated.
€3.7 million in unrealised portfolio gains under IFRS 9. A gross operating loss of €2.5 million was recorded,
after positive gross operating income of €0.7 million in
2018.
Income (loss) before tax
After the dilution gain of €1.2 million generated by the

Edmond de Rothschild (Monaco) capital increase,
Other Activities and Proprietary Trading posted
income before tax of €30.2 million, up from
€13.0 million in 2018.

leading by example and harnessing opportunities for
collaboration and synergies within the Group.
Outlook for 2020
While 2019 brought a strong increase in quality across

all asset classes, the first few months of 2020 were Movements in the portfolio of
marked by the emergence of economic, geopolitical subsidiaries and associates
and even health-related risk factors.
Against this backdrop, Edmond de During 2019, Edmond de Rothschild (France) acquired
Rothschild (France) will continue to execute the a shareholding in ERAAM.
Group’s strategy of refocusing on its core strengths,

Consolidated balance sheet Financial assets at fair value through profit and loss
slipped to €171.9 million at 31 December 2019 from
€174.7 million at 31 December 2018. The line item
Consolidated total assets came to €3,954.5 million at
chiefly consisted of the Group’s private equity
31 December 2019, up 7.9% from €3,665.1 million at 31
portfolio (€143.8 million) and trading derivatives
December 2018.
measured at fair value (€12.7 million) at 31 December
2019.
This increase in total assets was accompanied by a
major shift in the structure of the balance sheet, with a
Securities at amortised cost were stable at
hefty rise in loans and receivables due from credit
€10.4 million at 31 December 2019, down from
institutions, a corollary of the Bank’s improved overall
€10.1 million at 31 December 2018.
liquidity position and a conservative cash management
policy with the low interest-rate environment offering
Loans and receivables due from credit institutions
few opportunities.
rose sharply to €234.9 million at 31 December 2019, up
The rise in loans and receivables due from clients
297.3% from €59.1 million at the end of the previous
resulted from the Group’s strong business momentum.
year. This increase was largely driven by cash
transactions with the Group.
Assets
31 December 31 December
Loans and receivables due from clients (net of
In thousands of euros
2019 2018 provisions), consisting of ordinary overdrafts and
Cash, due from central banks and postal 2,229,167 2,248,217
accounts loans, advanced by 14.5% to €876.8 million at 31
Financial assets at fair value through profit and 171,859 174,670
loss December 2019 from €765.6 million at 31 December
Financial assets at fair value through equity 3,719 4,098 2018. That increase was primarily the result of an
Securities at amortised cost 10,384 10,132 increase in client overdrafts excluding UCITS funds,
which rose by €88.6 million, and a €21.1 million
Loans and receivables due from credit
234,936 59,135
institutions, at amortised cost increase in lending.
Loans and receivables due from clients, at 876,774 765,526 Debit positions on UCITS current accounts rose from
amortised cost
Tax assets and other assets 177,972 196,485 €18.7 million at 31 December 2018 to €20.1 million at
Non-current assets other than financial assets 249,689 206,867
31 December 2019.
Total assets 3,954,500 3,665,130

Non-current assets other than financial assets totalled
€249.7 million at 31 December 2019, up from
Liabilities and equity €206.9 million at 31 December 2018. The main factor
31 December 31 December behind this increase was the recognition of right-of-
2019 2018
use assets in respect of the assets leased by the Group
Financial liabilities at fair value through profit
1,582,115 1,428,390
and loss over the term of leases following the first-time
Due to credit institutions 88,276 35,011 application of IFRS 16 from 1 January 2019.
Due to clients 1,603,964 1,585,256
Tax liabilities and other liabilities 249,488 199,589
Provisions 24,590 25,110
Subordinated debt - -
Equity attributable to equity holders of the parent 395,496 379,945
Non-controlling interest 10,571 11,829
Total liabilities 3,954,500 3,665,130
Main changes in consolidated

assets
Cash, due from central banks and postal accounts

shows the Bank’s demand deposits with the ECB and
the Banque de France.

Main changes in consolidated Commitments given and received
liabilities by the Group
31 December 31 December
2019 2018
Financial liabilities at fair value through profit and Commitments given

loss totalled €1,582.1 million at 31 December 2019, up Financing commitments 292,492 255,056
10.8% from €1,428.4 million at 31 December 2018. This Guarantee commitments 51,553 50,323
increase mainly derived from a net increase in the term Commitments received
loans held by Edmond de Rothschild (France). Financing commitments - -
Guarantee commitments 13,487 10,471
The Due to credit institutions item reflects demand
deposit accounts on which balances soared to
Financing commitments given to clients, which
€88.3 million at 31 December 2019 from €35.0 million
include commitments to invest in certain of the
at 31 December 2018.
Group’s private equity funds, amounted to
€292.5 million compared with €255.1 million at
The Due to clients item includes ordinary accounts in
31 December 2018. This increase reflected a
credit, term deposits and savings accounts. This line
€53.6 million rise in overdraft authorisations and a
item rose by 1.2% or €18.7 million overall to reach
€16.2 million reduction in commitments on securities
€1,604.0 million at 31 December 2019. The increase
receivable.
mainly resulted from a €61.3 million rise in ordinary
accounts in credit and a €50.0 million decrease in
Guarantees given by the Group rose 2.4% to
other financial liabilities.
€51.6 million from €50.3 million at 31 December 2018.
The guarantees mainly consisted of administrative and
Provisions were stable at €24.6 million at 31 December
financial security provided to clients (up €1.1 million)
2019, down from €25.1 million at 31 December 2018.
and guarantees to investors in structured, formula and
cushion funds, as well as representations and
After 2019 net income of €14.4 million, equity
warranties provided to companies.
attributable to equity holders of the parent rose 4.1%
to €395.5 million at 31 December 2019.
Guarantees received from credit institutions moved
up to €13.5 million from €10.5 million at the end of
2018.

Parent company financial position and a conservative cash management policy
in a negative interest-rate environment.
statements Demand deposits with financial institutions edged up
from €43 million at 31 December 2018 to €47 million at
31 December 2019.
Parent company balance sheet
Loans to clients amounted to €885 million at
At 31 December 2019, the Bank’s total assets 31 December 2019, up 12.3% from €788 million at
amounted to €3.855 billion. That represented an 31 December 2018. That increase derived largely from
increase of 5.8% on the €3.644 billion recorded at 31 overdrafts granted to individual clients and non-
December 2018. financial companies.
The main balance sheet items were as follows: Other financial accounts fell 16.1% to €171 million,
down from €204 million in the previous year.
In thousands of euros 31 Decembe 31 Decembe
r 2019 r 2018
Assets Securities and non-current assets slipped to
Cash accounts and interbank operations 2,451,446 2,291,041 €348 million at 31 December 2019 from €361 million at
31 December 2018. This 3.8% decrease was chiefly the
Loans to clients 884,838 788,005
product of redemptions of private equity UCITS funds
Other financial accounts 170,929 203,842
and of the remeasurement of the portfolio of
Securities and non-current assets 347,650 361,448
subsidiaries and affiliates.
Total 3,854,863 3,644,336
On the liabilities side, interbank operations rose to

€1.185 billion at 31 December 2019 from €976 million
Liabilities and equity
at 31 December 2018. Term loans were the main factor
Interbank operations 1,185,142 975,765
behind this increase.
Client deposits 1,681,470 1,632,461
Debt securities 516,939 535,783
Client deposits rose by 8.3% to €1,681 million at
Other financial accounts 171,373 194,493
31 December 2019, up from €1,632 million at
Subordinated debt 21,022 21,023
31 December 2018. This increase was chiefly the
Equity 278,917 284,811
product of an €84 million rise in clients’ other demand
Total 3,854,863 3,644,336
deposits. Clients’ term deposits fell €35 million,
however.
On the asset side, cash accounts and interbank
operations accounted for 63.6% of the Bank’s total
Debt securities totalled €517 million compared with
assets, or €2.451 billion compared with €2.291 billion
€536 million one year earlier. They consisted mainly of
at 31 December 2018, an increase of €160 million or
Euro Medium Term Notes (EMTNs) issued in
7%. Cash deposited with the ECB and the Banque de
connection with structured products and negotiable
France amounted to €2.229 billion at
medium-term notes (BTMNs).
31 December 2019, or 57.8% of the Bank’s total assets
(versus €2.248 billion and 61.7% at 31 December 2018),
reflecting the improvement in the Bank’s liquidity

Other financial accounts moved down €24 million to Net banking income
€171 million from €195 million at 31 December 2018.
The fall reflected the measurement of currency Net banking income fell back 13.2% in 2019 to
exposures. €159.8 million from €184.2 million in 2018.
Subordinated debt, which amounted to €21 million at
This €24.3 million decrease in net banking income was
31 December 2019 (unchanged from 31 December
attributable to the following factors:
2018), includes only the undated super-subordinated
notes issued by the Bank in June 2007 to strengthen - income from the securities portfolio and
the Group’s regulatory capital. capital market transactions dropped
€19.2 million relative to 2018. This decrease
The main components of equity were as follows: largely reflected the reduction in dividends
received in 2019 (down €15.7 million relative
In thousands of euros (1) (1) to 2018).
31 December 2 31 December 2
Share capital 83,076 83,076
- Asset Management income declined by
Reserves 130,522 130,522
€5.4 million, falling back to €59.1 million from
Retained earnings 71,213 51,206 €64.5 million in 2018. This decline reflected
Total 284,811 264,804 lower distribution income and lower fees on
transactions (front-end charges and transfer
(1) Before appropriation of net income for the year.
fees). The introduction of the MiFID 2 and
clients’ aversion to higher-risk products, which
The net loss for the year came to €5.9 million
caused margins to narrow and transaction
compared with net income of €20 million in 2018,
volumes to fall, were the key factors behind
representing a decline of 129%.
this trend.
Parent company income statement
The key line items in the Bank’s condensed income

statement were as follows (in thousands of euros):
2019 2018
Net banking income 159,829 184,184

Personnel expense −77,012 −80,914
Other operating expenses −58,527 −58,925
Depreciation and amortisation −12,101 −11,651
Gross operating income 12,189 32,694
Cost of risk 3 2
Net gains or losses on other assets −18,080 −16,469
Non-recurring items −42 −713
Income tax 36 4,493
Net income −5,894 20,007

Operating expenses, depreciation and amortisation Following the transfer by Edmond de Rothschild SA of
its shareholding in Edmond de Rothschild (France) to
Operating expenses, depreciation and amortisation Edmond de Rothschild (Suisse) on 7 August 2019,
came to €147.6 million, down 2.5% from the parent company Edmond de Rothschild SA’s direct
€151.5 million recorded in 2018. and indirect ownership of the share capital of its
This €3.9 million decrease breaks down into: subsidiary Edmond de Rothschild (France) and its sub-
- a 4.8% fall in personnel expenses to €77 million in subsidiaries fell to below 95%, the pre-requisite for the
tax consolidation regime. Accordingly, Edmond de
2019 from €80.9 million in 2018
Rothschild (France), as well as its subsidiaries Edmond
- a 0.7% decrease in other operating expenses to
de Rothschild Asset Management (France), Edmond
€58.5 million in 2019 from €58.9 million in 2018, de Rothschild Assurances et Conseils (France),
and Edmond de Rothschild Private Equity (France),
- lastly, €12.1 million in depreciation and Edmond de Rothschild Corporate Finance, Financière
amortisation in 2019, compared with €11.7 million Boréale and Cleaveland, which were all consolidated
in 2018. for tax purposes, left the consolidated tax group
After operating expenses, depreciation and headed up by Edmond de Rothschild SA with
amortisation, gross operating income totalled retroactive effect from 1 January 2019. The Edmond
de Rothschild SA Group had two subsidiaries in 2019.
€12.2 million, down from €32.7 million in 2018.
The Bank recorded a net income tax benefit of
€36 thousand compared with €4.5 million in 2018.
Non-operating items
The net cost of risk had a positive impact in 2019, as in It recorded a net loss of €5.9 million compared with
2018 – a real testament to the calibre of the Bank’s net income of €20 million in 2018, representing a
commitments and its risk management policy. decrease of €25.9 million.
Net gains or losses on other assets showed a net loss Share capital
of €18.1 million versus a net loss of €16.5 million in
2018. The key contributor was an impairment loss of Ownership of the share capital, which amounted to
€13.2 million recognised on the investment in the €83,075,820 at 31 December 2019, was as follows:
Cleaveland subsidiary.
EDMOND DE ROTHSCHILD
5,538,328 shares, i.e. 100.00%
(SUISSE) SA
Non-recurring items contributed a net loss of
Other individuals 60 shares, i.e. 0.00%
€42 thousand.
Total 5,538,388 shares, i.e. 100.00%
Income tax: effective 1 January 2018, Edmond de
Rothschild (France) and some of its subsidiaries joined At 31 December 2019, there were no employee
the tax consolidation group headed up by Edmond de shareholders as the term is defined in Article L. 225-
Rothschild SA. The Edmond de Rothschild SA Group 102 of the French Commercial Code.
had ten subsidiaries in 2018.

Disclosures pursuant to Articles 39-04 and 223d and Disclosures concerning payment periods
39-05 and 223e of the French General Tax Code (Articles L. 441-6-1 and D. 441-4 of the French
Commercial Code)
Edmond de Rothschild (France) recorded a total At year-end 2019, the amounts owed by the Company
amount of €445,923 in expenditure covered by Articles to its suppliers and its clients broke down by maturity
39-04 and 223d of the French General Tax Code as follows (in euros):
(extravagant expenditure), corresponding to €148,641
in corporate income tax, which was duly paid.
No expenditure falling within the scope of Articles 39-

05 and 223e of the French General Tax Code was
recorded.
Disclosures concerning payment periods*

Overdue invoices received and issued not settled at the balance sheet date
Article D. 441 I.-1: overdue invoices received not settled at the Article D. 441 I.-2: overdue invoices issued not settled at the
balance sheet date balance sheet date
91 0
Total (1
0 days 31 to 60 61 to 90 days Total (1 day days 1 to 30 31 to 60 61 to 90 91 days
1 to 30 days day and
(indicative) days days and and over) (indic days days days and over
over)
over ative)
(A) Late-payment analysis
Number of relevant invoices 40 40 38 38
Total amount of relevant invoices excl. VAT 417,225 20,700 437,925 208,571 500,996 709,567
Percentage of total amount of purchases excl. VAT

in the financial year 0% 0.5% 0% 0.5%
Percentage of revenue excl. VAT in the financial

year 0.4% 0.9% 1.3%
(B) Invoices excluded from (A) concerning receivables and payables disputed or not accounted for
Number of invoices excluded
Total amount of excluded invoices excl. VAT

(C) Reference payment periods used (contractual or statutory period - Article L. 441-6 or Article L. 443-1 of the French Commercial Code)
Payment periods used to calculate late payments

*Excluding banking and related transactions

Information on dormant bank accounts Information on branches (Article L. 232-1 of the
French Commercial Code)
Pursuant to French Act no. 2014-617 of 13 June 2014 Pursuant to Article L. 232-1 of the French Commercial
on dormant bank accounts, Edmond de Rothschild Code, the branches in existence at 31 December 2019
(France) discloses that: were as follows:
- it identified 3 dormant accounts as defined in - a branch at Corso Venezia 36 in Milan (Italy)
the aforementioned Act on its books in 2019 with - regional offices in Bordeaux, Lille, Lyon,
a total balance of €90,136.13; Marseille, Nantes, Strasbourg and Toulouse
- it did not identify any dormant accounts on its
books in respect of 2019 with deposits or other Information about offices and activities at 31
assets transferable under French law to Caisse December 2019
des Dépôts et Consignations and thus made no
Article L. 511-45 of the French Monetary and Financial
such transfers to Caisse des Dépôts et
Code as amended by government order no. 2014-158
Consignations.
of 20 February 2014 requires credit institutions to
publish information about their offices and business
activities within their scope of consolidation, in each
state or territory.

Offices by country
Office Activities
China
Zhonghai Fund Management Co. Ltd. Asset management
France
Edmond de Rothschild (France) Banking
Edmond de Rothschild Asset Management (France) Asset management
Financière Boréale Proprietary trading
Cleaveland Asset management
Edmond de Rothschild Corporate Finance Advisory and financial engineering
Edmond de Rothschild Private Equity (France) Asset management
SAS EDR Immo Magnum Asset management
ERAAM SAS Asset management
Groupement Immobilière Financière Other
Edmond de Rothschild Assurances et Conseils (France) Insurance brokerage
United Kingdom
LCFR UK PEP Limited Asset management
Hong Kong
Edmond de Rothschild Asset Management (Hong Kong) Limited Asset management
Edmond de Rothschild Securities (Hong Kong) Limited Wealth management
Israel
Edmond de Rothschild Boulevard Buildings Ltd Real estate portfolio management
Luxembourg
Edmond de Rothschild Europportunities Management SàRL Asset management
EdR Real Estate (Eastern Europe) Cie SàRL Proprietary trading
Edmond de Rothschild Europportunities Invest II SàRL Proprietary trading
Edmond de Rothschild Europportunities Invest SàRL Proprietary trading
CFSH Secondary Opportunities SA SICAR Proprietary trading
CFSH Luxembourg SàRL Proprietary trading
Bridge Management SàRL Proprietary trading
Edmond de Rothschild Europportunities Management II SàRL Asset management
EdR Real Estate (Eastern Europe) Management SàRL Asset management
Edmond de Rothschild Investment Partners China SàRL Asset management
Monaco
Edmond de Rothschild (Monaco) Wealth management
Number of Income (loss) before

Country Revenue Net banking income Income tax o/w current tax o/w deferred taxes
employees tax
China - - - −2,324 - - -
France 860,082 289,580 782 14,875 −15,062 −14,487 −575
United Kingdom - - - −10 - - -
Hong Kong 15 −11 - −47 - - -
Israel 2,081 1,926 1 193 - - -
Luxembourg 1,869 12,136 - 11,452 −682 −439 −243
Monaco - - - 7,571 - - -
Total 864,048 303,631 783 31,709 −15,744 −14,926 −818

Subsequent events:
The Covid-19 pandemic is likely to have significant

adverse effects on the global economy, and the
damage could be even worse unless the pandemic is
contained rapidly. The impact of the lockdown on
consumer spending and the general loss of confidence
right across all economy have caused a sharp
slowdown in activity. Production difficulties, supply
chain disruption in certain sectors and a drop-off in
investment are compounding the situation.
The upshot is likely to be markedly weaker growth,

and even technical recessions in several countries, and
this is reflected in the substantial losses in the financial
markets and greater volatility. These knock-on effects
would then hit the activities of banks’ counterparties
and of banks themselves.
For Edmond de Rothschild France and the Edmond de

Rothschild France Group, the main immediate impact
will stem from the sensitivity of their own assets and
their assets under management to the fall in asset
prices (equities, bonds, etc.) on the financial markets.
It is impossible to assess at this stage the negative
impact on the Bank’s net banking income, earnings
and financial position.
Following the recommendations of the European

Central Bank, adopted by the ACPR in France,
regarding the suspension of dividend payments during
the Covid-19 health crisis, the Bank has taken the
decision to suspend dividend payments until October
2020.
.

Internal control and risk management procedures relating to the preparation
and processing of financial and accounting information
Presentation of the organisation and

operation of internal control and risk
management
- special attention paid to compliance with
The key principle underpinning the internal control regulations, including:
organisation is that operational duties should be  government decree of 3 November
kept separate from control responsibilities. Under 2014 on internal control,
this approach, front-office units (e.g. sales  the AMF’s General Regulation,
departments and trading floors) are kept strictly  the MiFID 2,
separate from support functions (e.g. back-office,  recommendations published by the
middle-office and accounting). Edmond de Basel Committee,
Rothschild (France) uses a handbook of internal  French government order no. 2016-
procedures that underscores this principle of the 1635 of 1 December 2016 and Directive
separation of duties. It also possesses a framework (EU) 2015/847 of 20 May 2015 on the
of control processes that is built around internal prevention of the use of the financial
controllers within the Compliance and Permanent system for the purposes of money
Control Department and in the business lines and laundering or terrorist financing, and
subsidiaries. The internal control procedures aim to other related rules
ensure that the accounting and financial information  Government decree of 5 October 2015
provided to the Supervisory Board, shareholders concerning the automatic exchange of
and supervisory authorities are fairly presented and information.
reliable, and that the information is provided and  FATCA agreement signed on 14
published on a timely basis. November 2013
 IRS Revenue Procedure 2017-15, QI
Control levels Agreement
- clear allocation of resources to either periodic
Edmond de Rothschild (France)’s internal control
control (by the Internal Audit Department) or
framework is underpinned by the following
permanent control (by dedicated internal
principles:
controllers and the Compliance and Control
- heavy involvement of the corporate and
Department).
supervisory bodies, especially the Audit
Committee and the Risk Committee General risk management policy
- a Compliance and Permanent Control
Department consisting of 22 employees. Edmond de Rothschild (France)’s main sphere of
These employees are obliged to report their activity covers Private Banking, Asset Management,
findings on a regular basis and apply a Private Equity and Corporate Advisory Services.
consistent control methodology Accordingly, its risk management policy aims to:
- a Central Risk Department monitoring - perform very strict controls on the development of
operating risk, which has seven permanent various activities, including market and credit
staff members and ten risk liaison officers transactions, to ensure that only limited risk
working at the business lines (two of whom exposure is incurred
have a different main activity) - arrange highly liquid financing arrangements, with
- an Internal Audit division with seven abundant long-term sources of funds and uses of
members of staff funds that can be sold easily, should the need arise.
In addition to its own role in monitoring financial

risks, the Central Risk Department is tasked with
coordinating risk management. In particular, it is
responsible for organising cross-functional

committees that review all the risks inherent in the appropriate, an Internal Auditor also attend this
Bank’s business activities. meeting. The Accounting Department has a unit
tasked with analysing the financial statements and
It drafts a Risk Policy in conjunction with its liaison detecting potential errors. The accounting
officers and in line with the Group Risk Charter and processes and the quality of the accounting and
Policy (Edmond de Rothschild Holding, Geneva), financial information are also subject to checks by
which is submitted to the Risk Committee, then permanent control, with one internal controller
approved by the Supervisory Board. assigned solely to the Finance and Development
The Central Risk Department also submits a Department, and to periodic audits by the Internal
Recovery Plan to the Risk Committee and the Audit Department. Additionally, the Company’s
Supervisory Board, pursuant to the French financial statements have to be audited by two
government order no. 2015-1024 of 20 August 2015. independent Statutory Auditors.
The Central Risk Department reports directly to the The parent company financial statements (Report of
Executive Board and informs it regularly of the the Executive Board, parent company financial
controls it performs to the Supervisory Board via statements) and consolidated financial statements
the Risk Committee. (consolidated financial statements, Edmond de
Rothschild (France)’s Management Report) are
submitted to the Audit Committee and the
Production of accounting and Supervisory Board. The Audit Committee conducts
financial information a global and summary review of the control
framework for accounting and financial risks, and
The internal control framework also applies to the
ensures the completeness and consistency of the
production of accounting and financial information.
system for reporting financial information.
The Company’s individual and consolidated
Lastly, the Statutory Auditors review the interim
accounts are prepared by the Accounting
financial statements (for the period to 30 June) and
Department, which remains strictly independent of
present their work to the Audit Committee ahead of
the operating entities. It also applies the principle
the approval of the financial statements (at least
that at least two staff members should be in a
twice a year). They are also invited to meetings of
position to perform every critical task.
the Audit Committee and of the Supervisory Board
The Accounting Department manages the (parent
that review the financial statements.
company and consolidated) accounts of the Bank
and those of majority-owned subsidiaries primarily Recognition of financial risks
using information provided by the back offices. It
applies the accounting principles and rules in force. associated with climate change
The accounts of subsidiaries registered in other
effects and measures taken to
countries are managed locally. The consolidation
process relies on the submission of detailed reduce them
information using a standard reporting package
Edmond de Rothschild (France) has pursued a
completed by each subsidiary.
programme to mitigate its environmental footprint
The Accounting Department consolidates the
since 2011. Its efforts are an integral part of
income statement every month and carries out a
Edmond de Rothschild Group’s sustainability
detailed review of each subsidiary’s individual
strategy. Measures taken by the Edmond de
financial statements. It ensures that financial
Rothschild Group to reduce such risks are presented
statements are published on a timely basis.
in the Sustainability Report1.
Furthermore, a meeting is held at least quarterly
The specific measures taken by Edmond de
under the authority of a member of the Executive
Rothschild (France) are stated in the Declaration of
Board to review doubtful loans and provisions for
Extra-Financial Performance section (“Managing
litigation and to determine the appropriate
climate change and energy transition risks”) in
allocations to and reversals from provisions. The
Edmond de Rothschild (France)’s annual report.
Legal Department, the Chief Accountant and, where
1(https://www.edmond-de-rothschild.com/site/International/en/Sustainable-development/reports).

Declaration of
Extra-Financial Performance
For the second year, Edmond de Rothschild (France) to help build a more sustainable future and its aim of
is publishing its Declaration of Extra-Financial having a real and measurable impact.
Performance in accordance with French government
order no. 2017-1180 of 19 July 2017 and decree no. Information relating to the way the Group manages
2017-1265 of 9 August 2017. the environmental impact of its operations and
information about its social commitment is presented
With this report, Edmond de Rothschild (France) solely in the Group’s sustainability report and its
meets the regulatory requirements while also setting appendices1. Information about how climate change
out its commitments as a responsible, future-facing risks are managed within investment activities is
company. presented in this document.
The five pillars presented below represent the material Edmond de Rothschild (France) has been a signatory
non-financial issues identified by the Group in its 2014 of the United Nations Global Compact since 2011, and
materiality exercise. This declaration of extra-financial is a member of the United Nations Environment
performance discusses the main non-financial risks Programme Finance Initiative (UNEP FI). The aim of
identified for Edmond de Rothschild (France) based these two initiatives is to encourage financial
on the Group’s material issues. The Group’s annual organisations to apply sustainability principles more
sustainability report1 provides more details and key effectively, particularly by integrating environmental,
information about all material issues, targets and social and governance (ESG) factors into investment
progress achieved towards the Group’s commitments and risk analyses.
EDMOND DE ROTHSCHILD:
A CONVICTION-DRIVEN INVESTMENT HOUSE
OUR BRAND POSITIONING: "BOLD BUILDERS OF THE FUTURE"
ETHICAL AND COMMITMENT TO INNOVATION FOR MANAGEMENT OF COMMITMENT FOR A

RESPONSIBLE EMPLOYEES RESPONSIBLE ENVIRONMENTAL SUSTAINABLE SOCIETY
BEHAVIOUR INVESTMENT IMPACT
› Corporate governance › Talent management

› Diversity and equal
› Carbon risk management › Stakeholder
› Compliance with and energy transition › CO2 emissions from engagement
regulations opportunities › Inclusion of ESG criteria energy consumption
› Ethical behaviour › Employee engagement in financial analysis › CO2 emissions from › Philanthropic activities
› Risk management › Positive screening in professional travel
› Transparency and asset management › Paper consumption
reporting › Shareholder › Waste management
engagement and voting
policy
› Impact investing
› Theme-based investing
OUR MATERIAL ISSUES OUR IMPORTANT ISSUES

THE VALUES OF THE EDMOND DE ROTHSCHILD GROUP
OUR STAKEHOLDERS
Employees – Clients – Suppliers and partners – Regulators – Banking and financial associations
Local communities – International organisations – Environment
1 See Edmond de Rothschild Group Sustainability Report 2018: https://www.edmond-de-rothschild.com/site/International/en/Sustainable-development/reports

Scope of the declaration of extra-financial performance
This report covers all the activities of Edmond de Rothschild (France), not including its subsidiaries and branches
outside France. That scope represents 94% of Edmond de Rothschild (France)’s workforce.
Business model
The Edmond de Rothschild Group is an independent, Its expertise, respect for its commitments and co-
family-controlled financial group focused on private ordinated management of all its business lines mean
banking and asset management. It also operates in that the Edmond de Rothschild Group maintains a
corporate finance, private equity, real estate, relationship of trust with all of its stakeholders, internal
insurance brokerage and investment fund and external. Edmond de Rothschild (France)’s
administration. The Edmond de Rothschild Group has business model, presented here, reflects that of the
a Strategy Department that leads strategic discussions Group. Details of Edmond de Rothschild (France)’s
with the Executive Committee. It defines a vision that various business lines are provided in this
is translated into roadmaps for the Group and each management report.
business line.
Edmond de Rothschild is a conviction-driven investment house founded on the idea that wealth must be
SCOPE OF THE DECLARATION OF EXTRA-FINANCIAL PERFORMANCE: FRANCE (PARIS AND REGIONS)
used to build the world of tomorrow. Our expertise, entrepreneurial approach and commitment enable us to
offer innovative solutions that add value.
OUR VALUES OUR RESOURCES OUR CLIENTS OUR ACTIVITIES OUR IMPACT
(France)
Private Banking
Our values are inspired 2,554 employees in the Advisory and Custody
Individual private €3.4 billion managed
by three key words in Group, including 726 in clients according to RI
the Rothschild family France strategies in France
motto:
Institutional and semi- Asset
A long-term institutional investors Management Investme RI strategies included
Concordia: Union
commitment backed nts for institutional in the management of
Integritas: Honesty Other banks / 81% of private equity
by a single owner and private clients
Industria: Work Financial institutions assets in France
An independent, Real Estate

Family offices
specialist, family-owned Advisory and 69% increase in SRI
A pioneering spirit and Investment mandates in the
Group for 250 years Development finance
a committed French private banking
entrepreneurial institutions
32 locations (8 in business in one year
approach
France) across 15 OUR OTHER
countries ACTIVITIES (France) 9 Group investment
For us, success is built strategies covering
A growth model based Private Equity more than 75% of the
over the long term,
on a strong ecosystem Advisory and SDGs
through a cautious yet
in order to support Investment
responsive approach
combining hard work innovation and build In the real economy:
with the constant quest the future Corporate Companies
for innovative financial Finance Advisory Governments
solutions. Infrastructure Real
10 Edmond de estate Etc.
Rothschild
Insurance Brokerage
Foundations involved
Advisory
in more than 100
projects
We favour bold strategies that combine long-term performance and impact, embody our convictions and
show a constant connection with the real economy.
Innovation in healthcare Energy and environmental Urbanisation and urban Job creation
transition development
Improvements in companies' Support for economic Development of SMEs Disruption and game-
ESG practices development in various regions changing innovations

Private banking is the Edmond de Rothschild French SICAV fund: its main open-end FCP funds
Group’s original business. In France, it can pro- are now sub-funds of that SICAV.
actively put together solutions and expertise to help
clients wanting to transform their assets at each Private equity is a strategic business at the Edmond
stage of the process. de Rothschild Group, delivering value-added
investment solutions that conjoin uniquely with
It offers investments, advice and expert services: private banking services.
- M&A transactions
- financial planning In France, with more than 25 years of experience
- portfolio analysis and almost €600 billion of assets under
- advice on life insurance
management, the Group’s private equity business
- advice on wealth management issues involved in
combines expertise in two key areas, i.e. minority
selling a family-owned business
investments and funds of funds.
- advice on philanthropy
- advice on real estate from the team of experts at
All of these skills are orchestrated to create holistic
Edmond de Rothschild Corporate Finance
value over the long term.
Entrepreneurs are one the Bank’s main sources of
growth in France. Major synergies between the
Group’s various skills enable it to offer suitable
Our approach
solutions for transfers of ownership, capital
The extra-financial risks presented in this report
increases and acquisitions.
were analysed and identified as part of an initiative
dealing specifically with the declaration of extra-
Edmond de Rothschild’s asset management offering
financial performance. A working group was set up
is designed to manage clients’ assets in an active,
to meet the requirements of new regulations as
conviction-based manner. Edmond de Rothschild
effectively as possible. The working group
Asset Management seeks to deliver more than just
comprised managers from the Group’s compliance,
index-based returns, instead focusing on long-term
legal, risk management and human resources
value creation. Its range of investment solutions
departments. The analysis of extra-financial risks
consists of funds and mandates for institutional
was validated by PwC, based on the materiality
investors and open-end mutual funds marketed by
exercise that the Group carried out in 2014 to
numerous partner institutions (private banks, asset
identify the major issues on which its sustainability
management companies and insurance companies)
strategy would be based. The risks taken into
and by independent financial advisers to their
account were assessed as being those most
private clients.
representative of Edmond de Rothschild (France)’s
activities.
The Group’s asset management, private equity and
real estate activities form part of the same business
Accordingly, given the nature of the Group’s
line, so it can offer an integrated investment service
activities, the circular economy, efforts to combat
covering all asset classes.
food insecurity and food waste, animal welfare and
a responsible, fair and sustainable diet do not form
part of the Group’s material issues and have not
In addition, to increase its international distribution
been identified as material risks for Edmond de
capabilities, the Group has set up an umbrella
Rothschild (France).
Key issues Extra-financial risks

Corporate governance
Ethical and responsible behaviour Compliance with legislation and protection of client data
Central role of ethics
Talent management
Commitment to our employees Employee engagement
Diversity and equal opportunities
Incorporation of ESG issues
Innovation for responsible investment Management of carbon risks within investments
Shareholder engagement and voting policy
CO2 emissions linked to activities in France
Management of environmental impact
Waste and paper management
Energy consumption

Ethical and responsible As part of that structure, Edmond de Rothschild
(France) is committed to maintaining robust
behaviour governance bodies, including by ensuring that the
members of those bodies have a diverse range
profiles, so that the combined skills of each member
allow it to pursue, manage and supervise all of its
CORPORATE GOVERNANCE activities. Edmond de Rothschild (France) also
ensures that the Supervisory Board has a sufficient
The Edmond de Rothschild Group’s corporate
number of independent members, in accordance
responsibility commitments mean that it constantly
with rules set out in the Middlenext Code, which the
seeks to act in a more prudent and diligent manner.
Supervisory Board has voluntarily adopted.
By maintaining solid governance, the Group can set
long-term targets and ensure that its internal
The Executive Board relies on the skills of specialist
developments take into account current social
committees dealing with specific business lines and
issues.
operational functions.
Policies The Supervisory Board relies on work done by an

Audit Committee, Risk Management Committee and
Corporate governance at Edmond de Rothschild is Remuneration Committee, which allow it to check
determined by its Corporate Governance Directive, that the business strategy is properly applied in
based on the Group Directive on Corporate accordance with the risk tolerance defined by the
Governance. It applies to Edmond de Rothschild Bank. These committees ensure controls are applied
(France), Edmond de Rothschild Asset Management correctly at the highest level of governance.
(France) and Edmond de Rothschild S.A.
Edmond de Rothschild (France) aims to maintain
The directive complies with regulatory obligations robust governance and is committed to
applicable to credit institutions and asset strengthening that governance, particularly where it
management companies, along with moves into new business areas and/or its regulatory
recommendations made by the French, European obligations change.
and Swiss supervisory authorities. The Executive
Board is responsible for transposing the Group A procedure to check the criteria for appointing and
directive into a local directive and for ensuring that renewing the terms of office of governance-body
the local directive is properly applied. The directive members was adopted in 2017. That work involves
is published on the French intranet so that it can be assessing the integrity of members, their individual
accessed by all staff members. The Bank is and collective skills, their availability, their
committed to communicating regularly about the compliance with rules about holding multiple
directive. corporate roles, their conflicts of interest and their
independence, with regard to both Middlenext and
The Group has also adopted a Social Responsibility UCITS V rules. Assessments carried out in 2019
Policy, which includes steps to prevent breaches of before members were appointed or had their terms
human rights connected with its business and the of office renewed did not reveal any anomaly
fundamental freedoms that are protected. resulting in candidates being rejected.
The Group intends to review the policy in 2020 and Finally, checks carried out in 2019, both by the
make it public. supervisory authorities and internal audit, did not
reveal any breach or major risk related to corporate
governance.
Edmond de Rothschild (France) is a public limited
company (société anonyme) governed by a
Supervisory Board and an Executive Board. This
two-tier structure satisfies the Group’s corporate 44% of Edmond de Rothschild (France)’s
governance principles, whereby executive Supervisory Board members were independent at
management must be separate from oversight 31 December 2019, as opposed to the minimum of
tasks. one third required under the Middlenext Code.

COMPLIANCE WITH LEGISLATION AND - Group Directive on the Swiss Anti-Money
Laundering Act
PROTECTION OF CLIENT DATA - Group Directive on higher-risk business
relationships and transactions
The regulatory environment is constantly changing - Group Procedure on exchange of information
and compliance with current and future regulations - Group Legal & Compliance Charter
has been fundamental to the way the Edmond de - Group Directive on consolidated supervision
Rothschild Group operates ever since it was - Order execution policy
founded. Through the Group’s oversight systems, - Directive on international financial sanctions
alert procedures and compulsory training, its staff - Group risk policy
members ensure that the necessary arrangements - Group Cross-border Directive
are in place to not only comply with current laws - Group Directive on controversial weapons
but also anticipate new laws where possible.
Various internal control arrangements are used to
Policies check that all regulations are complied with. That
includes regulatory intelligence work carried out
The Edmond de Rothschild Group has adopted an jointly by the Legal Department and the Compliance
internal policy in connection with each theme that and Permanent Control Department. Targeted
may affect its business activities, staff members or working groups also assess legislation and establish
other stakeholders. The Compliance and Permanent the right way to ensure compliance with laws when
Control Department has adopted policies relating to they come into force. Three levels of control are
gifts and benefits, the prevention of money applied to all activities affected, and they are
laundering and terrorist financing, market abuse, constantly updated and enhanced. As part of its
conflicts of interest and specific mandates, which control work, the Legal Department carries out
are communicated to the relevant Group regulatory intelligence activities in order to improve
employees. systems in view of regulatory changes.
The Group has a set of policies and procedures that Targeted training is organised for the teams
classify information, define the rules for ensuring concerned. For example, to train its staff in the
confidentiality and meet regulatory requirements prevention of money laundering and terrorist
regarding personal data protection. These financing, Edmond de Rothschild Asset
documents have been circulated among the Group’s Management (France) has since 2015 used a digital
staff and may be viewed on the French intranet at training tool developed by the AFG (Association
any time. The French processing register was Française de la Gestion Financière), which is suited
compiled before May 2018 and is updated on an more specifically to the asset management business.
ongoing basis through co-ordinated work by the
various departments concerned and the Data In Private Banking, there is a specific e-learning
Protection Officer (DPO). course relating to the prevention of money
laundering and terrorist financing. This course was
The Edmond de Rothschild Group is therefore firmly custom-developed by Edmond de Rothschild
committed to complying with regulations at all (France)’s Compliance and Permanent Control
times and to ensuring that each staff member Department.
behaves responsibly, helping to manage risks as
effectively as possible. The Compliance and Permanent Control Department
has also developed an e-learning course on market
The Group’s main aims are to ensure that its abuse, suitable for the various business lines.
procedures are regularly updated and to continue
its awareness-raising efforts so that the relevant Through these efforts, the Bank actively monitors
staff members continue to adopt them. These compliance with regulations and makes all staff
encouragement efforts are ongoing and will be members faced with these risks aware of regulatory
stepped up. developments.
The Compliance and Permanent Control Department
All of Edmond de Rothschild (France)’s compliance- and the Legal Department make ongoing efforts to
related procedures are available to all staff via the ensure compliance with the Bank’s policies and
intranet and categorised by activity or business line directives.
according to their content.
At the Edmond de Rothschild Group level, the As regards work-related regulations, operational risk
following documents are made available to staff sheets have been prepared for all of the major
members: regulatory risks identified, in which staff members
- Group Code of Ethics are reminded of the applicable procedures and the
- Group Directive on corporate governance risk-prevention arrangements in force. Once per
year, the Bank’s Risk Committee, assisted by the

Human Resources Department, analyses the
indicators related to those risk sheets and ensures
95% of subcontractors have included GDPR
clauses in their contracts with Edmond de
that procedures are properly applied. The Bank has
Rothschild (France).
also arranged employment law training for
managers.
The Head of Human Resources in France reports 0 incidents requiring notification to the relevant
directly to the Group HR Department and sits on authority in 2019.
Edmond de Rothschild (France)’s Executive Board.
As a result, compliance with employment law is a
cross-functional commitment that receives ongoing
attention and is the subject of regular updates in CENTRAL ROLE OF ETHICS
Executive Board meetings. The Bank’s internal
control bodies are also in charge of proposing
The Edmond de Rothschild Group aims to do its
improvements to ensure optimal risk management.
work in a responsible and exemplary manner. The
conduct of employees and managers with respect
Data protection to regulations and internal rules is a priority, to
ensure that the Group’s activities run smoothly and
The Edmond de Rothschild Group met the to help it achieve its targets. Ethics, integrity and
requirements of the General Data Protection transparency are intrinsically linked to the Edmond
Regulation (GDPR) ahead of the European de Rothschild Group’s values as a family-owned
regulatory schedule. business and its acute sense of responsibility.
Internal control teams are strengthened by the Policies

Information Systems Security Officer (ISSO) and
Data Protection Officer (DPO), who ensure, among The Group Code of Ethics represents one of the
other things, that the Group’s internal policy main internal policies applied by the Compliance
regarding client data protection and employee best and Permanent Control Department. Absolute
practice are applied and complied with. compliance with the ethical rules set out in that
Code is achieved through rigorous checks on its
The DPO also provides targeted support to application in all of the bank’s business lines.
departments and subsidiaries with their compliance
efforts. Awareness-raising campaigns are constantly The ongoing aim is to strengthen internal
being developed: 96% of Edmond de Rothschild procedures and raise awareness among all staff
(France)’s workforce have taken an e-learning members about the importance of referring to the
course in this area. In addition, between mid-2018 Code of Ethics at all times.
and mid-2019, the ISSO and DPO made major
efforts to establish targeted business line-specific The Code can be accessed by all staff members on
training in France. Contracts with subcontractors the intranet. It states, explains and supplements
have been updated, in accordance with the laws and regulations, as well as ethical best
regulation. A new certification campaign will take practice.
place in 2020.
Internal procedures, together with the Audit, Risk
IT projects are analysed jointly by the DPO and the and Compliance and Permanent Control
ISSO based on “GDPR and Security” forms Committees, ensure that it is properly applied within
completed by project leaders to check, before they the risk tolerance that the Group has defined. The
are carried out, that they comply with the principles arrangements established by these Committees –
of minimisation, “privacy by design” and “privacy by such as the risk policy, the internal risk charter and
default”. IT applications that manage confidential procedures for each specific identified case –
and personal data are also covered by a compliance facilitate robust management by the management
plan and are constantly updated to increase security and control bodies.
in terms of data and access.
Rigorous ethical conduct in business
Finally, around 10 “Privacy impact” analyses have dealings and within the company
been carried out, looking at the ways in which
personal data are processed to ensure that they are Every year, all staff members concerned are
GDPR-compliant. Key performance indicators (KPIs) required to take a training course on the prevention
and key risk indicators (KRIs) have been defined at of money laundering and terrorist financing.
Group level regarding GDPR compliance, and they
are updated every quarter by Edmond de Edmond de Rothschild (France)’s procedures are
Rothschild (France). based on the fundamental duty to know one’s client,
and remind employees of the Bank’s obligations
relating to the fight against money laundering and within the Group as part of the consolidated
the financing of terrorist activities. They also cover monitoring process”, which describes in detail the
the prevention of market abuse, ethical provisions rules about managing related risks, such as tax
applicable to employees as well as rules relating to evasion. The third Group procedure relates to
the use of IT and communication resources. “handling transaction alerts”.
The Compliance and Permanent Control Department The Group’s anti-corruption system includes
has set up whistleblowing procedures that allow all corruption risk monitoring measures involving
staff members to identify unethical behaviour and corruption risk-mapping for each entity, an
breaches of regulations or legislation in force. employee whistleblowing procedure and rules
Internal controls to monitor the systems in place regarding gifts and invitations. Awareness-raising
help ensure that the directives and tools provided to emails and digital staff training courses are also
all concerned work correctly. used.
All employees must, at all times, perform their Edmond de Rothschild (France) has set up a system
duties to the required stand in terms of ethical that complies with French automatic exchange of
conduct, skill, care and diligence. They are expected information (AEoI) standards. The system ensures
to work in the best interests of clients and all that all staff members are aware of AEoI principles.
stakeholders. The whistleblowing procedure ensures In addition, client documentation includes the
full confidentiality for staff members. Annual necessary information about AEoI for countries with
performance assessments also remind staff which France has signed an information exchange
members of the ethical principles that apply to agreement.
them.
The system supplements the anti-money laundering
and terrorist financing system, which includes tax
0 criminal convictions or corruption-related fraud as one of its transaction monitoring and
suspicious transaction reports criteria.
penalties
The Compliance and Permanent Control Department
supervises the implementation of these initiatives
0 unethical behaviour alerts raised during the year and ensure that they cover the relevant people.
The Edmond de Rothschild Group’s organisation

into business segments allows it to strengthen
consolidated supervision across each business line
by the Group’s Swiss holding company Edmond de
Rothschild Holding S.A.
Solid measures to combat corruption and

tax evasion
Edmond de Rothschild (France) does not have any

subsidiaries in tax havens. This choice forms part of
the Group’s commitment to protecting the financial
system, with the aim of maintaining and increasing
the public’s trust in it. The Edmond de Rothschild
Group’s duty of disclosure aims to achieve the high
level of transparency needed to maintain the trust
of its clients and stakeholders over the long term.
The Group Code of Ethics provides a global

framework for all themes relevant to its activities,
including those concerning tax evasion. The Code
also states that “the Edmond de Rothschild Group
takes a risk-based approach, intending to initiate
business relationships only with clients whose assets
are in compliance with their tax obligations.”
Group employees follow codes of conduct adopted

by the entities for that purpose. The Group has a
procedure concerning “exchanging information
Commitment to The Group is active on social media, which
represent a powerful way of sharing its social
employees
commitments in these areas.
TALENT MANAGEMENT 95.3% of Edmond de Rothschild (France)’s

workforce on unlimited-term contracts at 31
Generating synergies within the Edmond de December 2019
Rothschild Group is vital in order to grow the
business and achieve both individual and common
goals. Synergies rely on staff members and the Edmond de Rothschild (France) also continues to
Group ensures that all its activities involve and interact with many school and university students
foster a common vision. through various events aimed at creating a young
talent pool and playing an active role in their
Policies professional development. In 2019, the Bank and its
subsidiaries in France took part in seven recruitment
forums, including the Edhec Business School forum,
Attracting, developing and retaining the best talent
the Université Paris-Dauphine forum, the ESCP
are key aims for the Edmond de Rothschild Group.
Europe Investment Banking Forum and the
Processes and tools for staff recruitment and
Dogfinance Connect “top schools” event.
internal transfers are upgraded on a regular basis.
There is a dedicated policy for matching available
The Bank welcomed 32 young people on work-
internships with students based on their profiles, in
study and/or professional development
order to deliver the best results for the young
programmes in 2019. Five of those young people
people concerned. The policy also includes
were hired at the end of those programmes.
commitments regarding training and supporting
interns. The Human Resources Department assesses
Edmond de Rothschild (France) also gave
and adjusts the policy depending on market
internships to 93 students, who shadowed teams in
developments, the specific features of internships
various business lines. The Bank wants to attract the
and the Group’s strategic aims.
most talented people, help them make the most of
The Group’s Social Responsibility Policy also applies
their talent, develop their skills and guide them as
to all staff members and covers key themes such as:
they learn their future occupation.
- respect for human rights;
- recruitment processes;
To support skills development, the programme for
- compensation, mobility and promotions;
integrating new staff members was reviewed in
- work/life balance;
2019 in line with the Group’s new organisation and
- a culture of dialogue and teamwork.
strategy. It will be implemented and rolled out from
2020.
The aim is to adopt the right policies to formalise
existing processes.
In addition, targeted development programmes
have been reviewed and adjusted in order to
The Human Resources Department is committed to respond as effectively as possible to the issues
ensuring that employees have a positive experience facing the Group. Talent development is a key part
throughout their career with the Group and is of the Group’s strategy and training programmes
constantly seeking to improve existing processes, must contribute appropriately to that goal.
particularly in the following areas:
- identifying and recruiting the best talent; The programmes are available to all staff members
- integrating joiners; on the intranet. They have been designed to
- managing performance; address business lines’ strategic priorities and
- listening, appraising and providing feedback; needs, and to allow all staff members to learn,
- training and developing staff members; develop and hone skills on an ongoing basis.
- facilitating internal transfers and retaining talent;
- applying forward-looking jobs and skills The managerial training programme was revamped
management; in 2019 to tackle themes including change and
- recognising employees and providing benefits. transformation. The new format, which combines
personal skills development with classroom-based
and digital learning, is also creating a community
Processes and tools for recruitment and internal and a discussion forum for managers.
transfers ensure that candidates are assessed solely
on the basis of their skills and suitability for the role,
thus excluding all forms of discrimination.

The business expertise programme offers technical Other training programmes within the Group,
training for the various functions within the Group, including regulatory training, are regularly reviewed
but also training programmes developed for by Human Resources teams with the aim of
business lines such as private banking and asset enhancing the offering, ensuring that quality levels
management, so that issues in each business line are consistent across all staff members and
can be addressed as specifically as possible. providing solutions that meet their changing needs
ever more effectively.
100% of staff members in France took at least

one training course in 2019.
Classification of training by category 2019
Technical/business skills 58%

Interpersonal/managerial skills 18%
Beginners and advanced language training 11%
IT skills 7%
Health and safety 6%

EMPLOYEE ENGAGEMENT signature of an agreement and the dissemination of a
Charter of Best Practice intended to ensure a good
Employee engagement and performance depend on work/life balance and in particular the right to
the extent to which staff members buy into the disconnect.
Group’s vision, business plan and values. The Edmond
de Rothschild Group has been a family-owned
business since its creation, and seeks to ensure that its 91% of staff members took part in annual
employees are closely aligned with the values it has performance reviews in 2019 (accurate as of 17/02/2020)
always had.
The Edmond de Rothschild Group favours internal

Policies career development and, to achieve that, uses
methods of supporting and communicating with its
Human Resources has adopted various key
staff.
commitments that strengthen synergies and
communication with the various teams. Ongoing
Career discussions are organised by Human
dialogue between staff members, management and
Resources. They are a unique opportunity to establish
Human Resources ensures that everyone adjusts to the
a long-term relationship of trust based on honest and
changes taking place in the banking sector. Annual
transparent dialogue. They allow staff members to put
performance reviews are a key element of the Human
forward their development and/or training needs and
Resources strategy. Through them, qualitative and
to say how they want their careers to progress.
quantitative information is collected that allows an
assessment of each staff member’s performance level
In particular, the discussions allow managers and
and engagement.
Human Resources to support the career plans of staff
members and to develop in-house career
The aim is to set up tools that increase the number of
opportunities, in order to encourage internal mobility.
participants in this process.
The Group set up a committee dealing specifically with
The Group has also adopted a Social Engagement
internal mobility in 2015, with the aim of aligning skills
Charter that provides a framework for employees
and talent management with staff development
wanting to take part in social engagement
requirements.
programmes. All Group entities can join a programme
supported or developed by the Edmond de Rothschild
The Group is investing in internal mobility because it is
Foundations or propose one or more programmes on
a priority within its Human Resources strategy, partly
a theme supported by the Group, such as education or
ensuring that the Group has the resources and skills it
entrepreneurship with a positive social and
needs and partly helping to promote talented staff
environmental impact. The management bodies of
members while fostering employee wellbeing.
Group entities oversee and validate these social
engagement efforts.
Annual performance reviews form part of a continuous

improvement approach. The criteria adopted in the 43 Edmond de Rothschild employees in France
review process are in line with the Group’s leadership benefited from internal mobility in 2019
model.
The Group’s “culture pack”, developed in 2019,

formalises the implementation and interpretation of
the Group’s 10 conduct principles. Those 10 principles
represent a common compass to guide conduct within
the Edmond de Rothschild Group and achieve
progress in this area. They will also be included in the
annual performance review process from 2020.
Annual performance reviews also allow all staff

members to alert their line managers about any issues
with their workload and work/life balance.
Whistleblowing systems and prevention procedures

have already been set up at the operational level to
help local managers prevent difficulties.
Negotiations regarding quality of life at work, based

on key indicators, are underway. They will result in the

Remuneration policy The UCITS (Undertakings for Collective Investment in
Transferable Securities) V directive has been in force
The Edmond de Rothschild Group is committed to since 1 January 2017 and its provisions are very similar
ensuring that the link between performance (individual to those of AIMFD. The Group anticipated UCITS V by
or group) and reward (salary, promotion or internal applying, for several years beforehand, a deferred
mobility) is fair and helps reinforce transparency, as remuneration principle, including for UCITS managers.
well as increasing employee motivation and The aforementioned system, involving cash payments
engagement. linked to a basket of funds, has been adjusted in
relation to UCITS V coming into force in 2017.
The remuneration policies of Edmond de Rothschild
Asset Management France and Edmond de Rothschild In accordance with these regulations, the Group aims
(France) were updated on 1 January 2019 in the light to achieve ongoing improvements in the quality of risk
of the AIMFD, UCITS V and CRD IV directives. management and in the control that the relevant
people and companies have over the risks they take,
Corporate officers, risk-takers as well as individuals and to ensure that its interests are aligned with those
with compliance, internal audit and risk-management of its clients.
responsibilities may receive the variable portion of
their salary on a deferred basis and in stages. Each Under Articles L. 511-71 and L. 511-73 of the French
year, the Finance, Human Resources, and Compliance Monetary and Financial Code (MFC), shareholders at
and Risk Control departments review and set out the Annual General Meeting (AGM) must be consulted
specific rules governing the application of these each year on the overall remuneration – comprising all
deferred remuneration principles. The rules are then salary components – paid to certain employees during
submitted to Edmond de Rothschild (France)’s the year under review. These employees include
Supervisory Board for approval based on proposals company executives and categories of employees –
made by the Remuneration Committee. including employees whose duties require risk-taking,
employees with an oversight function and any
With respect to CRD IV, a Group “Employee Share employee whose overall income puts them in the same
Plan”, involving rights to receive participation remuneration bracket as employees with those
certificates in the Edmond de Rothschild Group’s functions (except control functions) – whose
Swiss holding company, has existed since 2016 as a professional duties have a material impact on the
deferred compensation instrument. A second company’s or Group’s risk profile. Shareholders will
instrument was introduced in March 2018 in the form therefore be asked for their opinion, on an advisory
of deferred cash compensation linked to the share basis, regarding remuneration paid in 2019 to the
price of the Group’s Swiss holding company. aforementioned people.
As regards AIMFD, a new system was set up in March In addition, Article L. 511-78 of the MFC limits the
2016 for the payment of any deferred portion of the variable salary component to 100% of the fixed
variable remuneration of risk-taker Asset Management component for all group employees regulated by CRD
employees. The system allows half of those IV, unless shareholders at the AGM approve, giving
employees’ deferred remuneration and half of their reasons, a higher figure of up to 200%. In order to
“immediate” remuneration to be indexed to the ensure that group salaries remain competitive, a
weighted average return on a basket of Edmond de motion was submitted to shareholders to set the
maximum ratio of variable to fixed salary components
Rothschild Asset Management funds that represents
at 200% for all Group CRD IV-regulated employees.
their expertise.
The motion passed in the May 2019 AGM with respect
to the 2019 financial year.
2017 2018 2019
Gross annual payroll subject to social security charges (in

89,288 84,060 86,621
thousands of euros)
Increase in the fixed component 2.7% 3.3% 1.3%
Percentage of variable component relative to fixed component

36% 46% 38%
on (31/12/(N-1))

DIVERSITY AND EQUAL OPPORTUNITIES 47% of executives at Edmond de Rothschild
(France) who are women
The Edmond de Rothschild Group does not tolerate
any form of discrimination between employees. When
Efforts are also directed at fostering generational
staff members are recruited, if they are transferred
diversity and hiring individuals with disabilities. Human
internally and throughout their careers, the Group
Resources makes regular efforts to raise managers’
strives to recognise their skills and combat all types of
awareness of these subjects, particularly through
discrimination.
training courses and direct communication with all
staff members on these themes.
Policies
A specific diversity module is included in the
employment law training programme that has been
Avoiding discrimination is a core principle of all HR
offered to managers since 2016. More than 100
processes. The Group’s Human Resources Department
managers have taken part in the programme.
and the Executive Committees of its various entities
oversee discrimination matters and compliance with
The disability agreement, signed in June 2015 for
internal processes.
companies in the UES (a legally recognised group of
integrated companies in France) for a period of three
A “professional future” committee, with members from
years, was renegotiated in 2018. One of the
the Group’s management and staff representative
commitments under this agreement was to increase
bodies, meets twice yearly. During its meetings,
the percentage of disabled people in the workforce to
various indicators are presented that help it to ensure
1.3% by the end of 2017. The figure at the end of 2019
the absence of any discrimination.
was 1.61%. These good results are partly due to the
training undertaken by the Human Resources team,
The Edmond de Rothschild Group regards diversity of
which has also significantly raised awareness levels
background and age as both a necessity and a way of
among managers.
meeting the demands of the market as effectively as
possible, promoting new opportunities and driving
Edmond de Rothschild (France) has committed,
innovation. The Group is committed to all these
through a new agreement for 2018-2020, to increasing
matters in order to ensure equal opportunities. The
the proportion of disabled people in the workforce to
Group’s Social Responsibility Policy deals with these
2% by 2020.
themes. It will be reviewed and updated in 2020 to
provide more details about certain matters, reflecting
The Group’s disability initiative is continuing to help
the commitments adopted.
implement the agreement, raise awareness and
encourage involvement among our staff, monitor the
The Human Resources Department has set a target of
situation of disabled people within the Group, and
increasing the proportion of women in new hires from
manage the allotted budget. The Human Resources
45% to 55% and, for employees taking maternity leave,
team also supports disabled employees when they
of carrying out more than 90% of annual performance
have specific needs in areas such as their working
reviews and Human Resources meetings before their
environment or work organisation, using external
leave begins. The Group also aims to hire two people
resources – such as ergonomists – where necessary.
with disabilities per year, making a total of six over the
period of the agreement.
The Bank is also committed to improving generational
diversity. The Group pays particular attention to
Promoting equal professional opportunities for men
avoiding age-based discrimination. As regards older
and women is a key element of the Group’s human
employees, the Human Resources team supports
resources policy. An agreement on this matter was employees who are approaching retirement age, to
signed with staff representative bodies in 2019. It help them make a smooth transition that is suited to
includes several measures to ensure equality in terms their needs. Older employees receive specific support,
of recruitment, remuneration, and access to the most which can involve a number of personalised meetings
senior management roles. In 2019, Edmond de along with pension reviews. All senior employees
Rothschild (France) published a gender equality index. receive training in how to prepare for retirement.
Although it is aiming to improve its score further, it
already shows the Group’s strong commitment to this
matter.
84 points out of 100: Edmond de Rothschild

(France)’s gender equality index score

In addition, a procedure for preventing psychosocial All of the Human Resources team has received training
risks has been in place for several years. It includes the in detecting, preventing and dealing with psychosocial
possibility for Management and staff representative risks using a training tool called “Pétillance”.
bodies to carry out joint surveys and propose ways of Management is looking at extending that training to all
improving prevention methods. managers in the coming years to supplement existing
awareness-raising during their employment-law
training course.
Labour relations
An Economic and Workforce-Relations Committee Employees’ physical safety is protected by stringent
was elected in December 2018 for the Edmond de measures to ensure the safety of premises and people.
Rothschild (France) UES, which comprises Edmond de Workplace security is handled by a team of trained
Rothschild (France) and four subsidiaries. Almost 60% staff who are present throughout premises’ opening
of employees took part in the election, which involved hours. Employees in regular contact with clients have
electronic voting. also received training about how to handle difficult
situations.
Management wanted to maintain monthly meetings for
the Economic and Workforce-Relations Committee, Quarterly reports on workplace accidents are sent to
and all planned meetings were held. A large number of France’s Health, Safety and Working Conditions
matters were put forward for the Economic and Committee (CSSCT). For each accident, management
Workforce-Relations Committee to consider; detailed states the measures taken to prevent them and any
information was provided before meetings and remedial action. The accident frequency rate was 1.742
extensive discussions took place. Four agreements in 2019 (5.25 in 2018) and the injury severity rate was
were signed with union representatives in 2019 and 0.033 (0.04 in 2018).
three more are being negotiated, with agreements
expected in the first half of 2020. Certain staff members have received training and have
workplace first aid qualifications. Whereas the law
Health and safety requires retraining every two years, management has
The health, safety and wellbeing at work of employees decided to offer top-up training every year to
is a core concern for Edmond de Rothschild (France). workplace first aiders.
Staff representative bodies were informed and
consulted regularly throughout the year about all of The DUERP (single document for assessing
their prerogatives in this area. Well-being at work is occupational risks) and the PAPRIPACT (annual
assessed using absenteeism1 as a key indicator. The programme for preventing occupational risks and
absenteeism rate was 3.56% in 2019, slightly lower than improving working conditions) are updated every year
the 2018 figure. after consultation with the CSSCT and the
occupational health officer.
1 No. of working days lost due to illness throughout the year / no. of employees with permanent or fixed-term contracts (excluding students under work/study contracts).
2 The accident frequency rate is calculated as follows: No. of accidents resulting in lost working time x 1,000,000
No. of hours worked
3 The injury severity rate is calculated as follows: No. days compensated x 1,000
No. of hours worked

Innovation in Responsible The SRI team in France forms the basis for Edmond de
Rothschild Asset Management’s RI expertise. It has
Investment devised the RI Policy and developed four key
approaches that encapsulate its expertise:
For many years, the Edmond de Rothschild Group has 1. It integrates ESG risks and opportunities in its
been committed to greater sustainability in finance fundamental equities and credit analysis;
and responsible investment (RI) The integration of 2. It actively selects companies that have advanced
Environmental, Social and Governance (ESG) criteria sustainability policies, using a proprietary in-house
into investment decisions is regarded as a key priority. ESG rating system for positive-screening SRI funds;
3. It has adopted a pioneering shareholder
engagement approach since 2010;
TAKING INTO ACCOUNT ESG ISSUES IN 4. It is able to build portfolios of SRI funds that
INVESTMENTS combine strong ESG impacts and financial returns.
The Responsible Investment part of the Edmond de Edmond de Rothschild Asset Management (France)
Rothschild Group’s sustainability strategy refers to the and Edmond de Rothschild Private Equity have also
following material issues: been signatories to the United Nations Principles for
Responsible Investment (PRI) since 2010 and 2016
-carbon risk management and energy transition
respectively.
-inclusion of ESG criteria in financial analysis
- positive screening in asset management
- shareholder engagement and voting policy Edmond de Rothschild Asset Management’s
- impact investing Responsible Investment policy is also produced by the
- theme-based investing SRI team. The 2017-2020 RI Strategy is being
implemented by investment teams with the help of all
support functions. It is being overseen by the Edmond
Policies de Rothschild Group’s Asset Management Executive
Committee and co-ordinated by an RI Steering
Edmond de Rothschild (France)’s commitment to RI Committee consisting of 24 RI correspondents from all
and to taking ESG issues into account is formally set operational departments. These correspondents are
out in the Responsible Investment Policy produced by helping to implement the actions included in the 2017-
its specialist asset management teams. It is available 2020 RI roadmap, which are prioritised within their
on the Group’s website and addresses all business departments each year.
lines. All teams have access to it and can draw
inspiration from it in order to develop sustainable The current strategy, adopted in September 2017, is
investing activities. having a similar positive impact as the previous one.
The new strategy for 2021-2024 is currently being
Edmond de Rothschild Private Equity also has an ESG prepared, covering all of the Edmond de Rothschild
integration policy. That policy is currently being Group’s activities managing liquid and illiquid assets.
updated to factor in new aspects and new issues that The aim of this strategy will also be to mitigate risks
have arisen within the Group but also within the and identify opportunities to develop the sustainable
finance industry more broadly. investment business.
Asset Management’s Responsible Investment Policy Since 2015, Edmond de Rothschild Asset Management
will be reviewed and updated in 2020 to factor in the has put in place a simple, robust and effective method
Group’s developments and convictions, as reflected by of rolling out ESG integration within its asset
the methods it has adopted. management teams. After a test phase in 2015 and
2016 with the European equities team, and based on
This new ESG Policy will help harmonise the various the feedback from those tests, the Fundamental Asset
methods used in this area, while taking into account Management Department decided to take a pragmatic,
the various funds’ investment strategies and specific practical and flexible approach in 2017-2018. The aim
features. is to increase the appeal of ESG for equity, credit and
sovereign debt managers, so that the topic becomes
an input that helps their asset management activities
rather than a constraint, because ESG is too often
associated with reporting obligations.
The aim is to offer an effective and customised

approach, to show the merits of the approach in terms
of creating value and getting teams to pull together to
achieve the Group’s objectives. The aim is for asset

managers to take ownership of those objectives and particularly the Edmond de Rothschild Private Equity
thus help develop the range of RI products, range of impact investing strategies.
The Edmond de Rothschild Group’s Responsible Investment methods
The term Responsible Investment (RI) is applied to all of the Group’s investment categories that can be
described as socially responsible or sustainable, and the following distinctions are made.
Principle: Investment strategy intended to contribute to the achievement of the UN Sustainable Development
Goals, with the explicit aim of creating economic and financial value, but also social and environmental value.
These strategies give meaning to investments by creating value and generating positive impacts for investors
Impact investing and for society as a whole (the “Triple Bottom Line” approach). Those impacts are monitored and measured
over time, and are subject to dedicated reporting.
Impact at portfolio level: systematic impact on all investment decisions, definition of improvement targets
and of a specific ESG action plan for each investment.
Principle: Investment strategy that involves investing in companies or categories of securities that provide
solutions to major sustainability issues, such as health, energy transition and economic development in
emerging countries, while generating growth opportunities linked to the innovative nature of the business
model. Although these funds are not impact-investing funds in the formal sense, their investment strategies
Sustainability- factor in ESG criteria at every stage of the decision-making process, and attainment of ESG criteria is
themed investing monitored over time. These strategies help produce positive impacts and so contribute to the attainment of
the United Nations Sustainable Development Goals. Those impacts are monitored and measured over time,
and are subject to dedicated reporting.
Impact at portfolio level: systematic impact on all investment decisions, definition of improvement targets
and of a specific ESG action plan for each investment.
Principle: For Edmond de Rothschild Asset Management (France), ESG integration involves taking into
account ESG criteria when analysing a company or fund. Edmond de Rothschild Asset Management (France)
has defined its own methodology, with 10 precise criteria to measure the extent of ESG integration in each
fund. A fund is deemed to have an ESG integration approach if it meets at least eight criteria (SRI funds meet
all 10 criteria). The criteria include ESG screening, ESG dialogue established by asset managers and the impact
of ESG criteria on the valuation of securities in the fund universe.
Principle: For Edmond de Rothschild Private Equity, ESG integration is achieved through the systematic
integration of ESG considerations from the fund structuring phase onwards. With ESG strategies, information
about the responsible investment approach is included directly in their legal and marketing documentation,
contractual agreements and at each stage of investment decision-making, from screening to disposal. The risk
review is an important stage in the ESG integration process, in which the planned investment’s risk universe is
defined taking into account any positive or negative impacts related to (i) the business sector and (ii) the
company itself. It is important to identify material risk factors, but also to understand what opportunities arise
from the environmental and/or social point of view (innovation or improvement in the initial ESG situation).
ESG integration
- Initial ESG integration corresponds to minority investment strategies in which the investor has little or no
influence over governance. The responsible investment approach is based on checks that commitments are
being met and a robust analysis of the ESG risks inherent in each investment/partnership opportunity.
- Advanced integration means that ESG criteria are included in the decision-making process and monitored
over time using key ESG indicators. Investment funds are actively involved in the governance of companies
in the portfolio and, where ways of improving the ESG situation have been identified, put in place specific
action plans.
ESG integration may be adapted as necessary to apply it to other types of asset management activities
carried out by the Edmond de Rothschild Group, such as multi-asset/fund selection, infrastructure debt and
real estate. An investment strategy’s assets under management are only included in the “Responsible
Investment” category if the ESG integration approach is formally defined and implemented according to the
methodology in place.
Impact at portfolio level: unlike other forms of RI such as positive screening, which involve a performance
obligation, ESG integration involves a best-efforts obligation.
Principle: Investment strategy with advanced ESG integration associated with the use of ESG criteria either to
determine the portfolio composition (e.g. positive ESG screening strategy: best in class/best in universe), or
Positive screening
to practise “engagement” (direct or collaborative in-depth ESG dialogue, which is formal and traceable).
and engagement
Impact at portfolio level: systematic impact on investment decisions and/or the adoption of ESG
strategy
commitment initiatives that may affect portfolio composition (i.e. decisions to add to, reduce or sell

positions).
Norm-based exclusions relating to anti-personnel mines and cluster bombs are defined by Edmond de
Rothschild Asset Management (France). As regards investments, Asset Management has also devised a list of
countries that are banned or under surveillance. The Compliance and Internal Control Department validates
investments linked to those countries. Restrictions are integrated into the in-house Dimension system and give
rise to pre-trade restrictions.
Edmond de Rothschild Private Equity has drawn up its own exclusion list of activities, sectors or conduct
Exclusions deemed dangerous or controversial and in which the private equity investment business does not get
involved. However, Edmond de Rothschild Private Equity does not wish to rule out investment opportunities
simply because of a company’s poor ESG performance at the time of analysis. Because of private equity’s
long-term investment horizon, the focus is on intentions and efforts to improve each investee’s financial but
also extra-financial performance, by generating positive impacts for the whole of society. Investments are
therefore directed to innovation and the green economy, as well as sectors undergoing transition that require
support and expertise in implementing more sustainable or low-carbon growth models.
Assets managed by Edmond de Rothschild Asset Management (France) according to SRI 1 strategies in
2019:
€3,391 million
48%
Open-end 52%
funds Institutional
mandates
Or 11.4% of Edmond de Rothschild Asset Management (France)’s assets under management
1
Open-end funds and asset management mandates. Socially responsible investing through positive screening entails identifying companies that perform well on ESG criteria. Our efforts in this matter are based on
regular dialogue with corporate executives.

Edmond de Rothschild Asset Management: Active and fundamental asset management
Stages of the ESG integration process
ACCESSIBILITY
GRADUAL INTRODUCTION OF PRACTICAL ESG EFFORTS PRACTICAL ESG EFFORTS
OF ESG DATA
SYSTEMATIC ESG (BOTTOM-UP APPROACH) (BOTTOM-UP APPROACH)
EXTENSION OF THE ANALYSIS
DISCUSSIONS
UNIVERSE
Introduction of the new in- Equity and bond Launch of 10 ESG Systematic carbon and ESG
house "Picking Box" tool investment meetings integration projects, of measurement and
making it easier to access regarding ESG convictions which six priority projects monitoring for active and
and distribute ESG data to (alerts regarding were completed in 2017 fundamental asset
asset managers (overall ESG controversies or sensitive and 2018: management funds
ratings and analysis). issues, highly material The active and fundamental
events, investment  Energy transition and asset management
ESG data will gradually be opportunities relating to 2°C roadmap department has committed
added to the tool, and it will ESG issues etc.).  Sustainable Development to achieving the following
be made available to all Goals (SDGs), sovereign goals by 2020*:
asset management teams. Daily discussions between debt, risk focus  100% of active fundamental
asset managers and the RI  Corporate Credit SDG asset management will
Extension of the analysis team about material ESG  Valuation impact of ESG feature ESG integration
universe: 8,000 equity and risks (risk mitigation). research (equities and (100% of open-end funds
fixed-income issuers around corporate bonds) and dedicated funds unless
the world. Partnership with  Measurement of clients request otherwise,
Sustainalytics since 2017. intangibles systematic measurement of
 Small- and mid-cap ESG impacts on the
"Management Quality" valuations of equity and
fixed-income issuers)
 100% of active fundamental

asset management will
involve carbon footprint
* These commitments were validated by Edmond de Rothschild Asset Management’s Executive Committee and presented to members of the RI Steering Committee on 13/09/2017.
Edmond de Rothschild Asset Management (France)’s methodology developed for corporates is material for
open-end SRI funds are managed in-house using 11 of the 17 SDGs and around 30% of economic sectors
proprietary ESG analysis, which is performed year- covered.
round. In March 2018, ESG rating criteria were
reviewed in order to integrate the UN’s Sustainable Not all SDGs are applied to each security. A system
Development Goals into the analysis and evaluation of allowing positive or negative adjustments to be
corporate issuers. applied to a security has been adopted. The
methodology is scheduled to be updated in 2020,
In 2019, the RI team analysed the ESG performance of including the integration of the European green
139 companies and took part in 139 meetings with taxonomy as soon as it comes into force.
companies on ESG topics. Edmond de Rothschild
Asset Management is expanding its analysis to cover A list of 45 performance indicators for analysing and
all regions, responding to the growing needs of its measuring the human, organisational and relational
equity and credit asset managers. The agreement with capital of companies in the European food and
extra-financial ratings agency Sustainalytics gives beverages industry was compiled in 2018-2019 thanks
access to ESG analysis covering around 11,000 issuers. to the RI team’s involvement in the working group of
the Observatoire de l’Immatériel.
All equity and bond management teams are
contributing and co-operating with respect to ESG As regards multi-manager/fund selection expertise,
integration. Innovative projects, producing concrete, more comprehensive due diligence questionnaires for
traceable results, and focusing on precise subjects all types of funds but also for asset management
identified as highly material in financial terms, have companies have been adopted.
been adopted by investment teams.
As part of equity and corporate bond investment

activities, in-house issuer analysis now takes account
of all the United Nations SDGs. In practice, the SDG
The fund selection is for the whole Edmond de In its private equity business, the Edmond de
Rothschild Group (asset management and private Rothschild Group is also a leading player thanks to its
banking), covering investments for institutional and teams of experts and long-term partnerships. Its
private clients. Hedge fund/alternative asset managers proven track record in structuring funds, defining
are included, with a simplified questionnaire based on investment processes and integrating ESG issues and
the recommendations of AIMA (Alternative Investment good governance rules into its strategies ensures that
Management Association) and the PRIs (Principles for the interests of investors, investment teams and the
Responsible Investment). Edmond de Rothschild Group are perfectly aligned.
The ESG due diligence questionnaire has two sections The Edmond de Rothschild Private Equity platform,
covering quantitative and qualitative criteria: consisting of two asset management companies in
1. A questionnaire assessing the funds’ ESG approach; France and Luxembourg, encourages synergies
2. A questionnaire assessing asset management between the teams, strengthens their shared vision
companies’ position as regards Responsible and ensures that the various participants’ stated
Investment. objectives are aligned. Edmond de Rothschild Private
Equity’s ESG policy therefore has a common
The new questionnaires are now fully integrated into component, which determines the general strategy for
the fund selection and monitoring process, and since all investment strategies, as well as a specific
January 2019 have been sent out to 310 funds approach for each type of product managed, taking
managed by 147 asset management companies in into account the specific features of investment
order to capture changes in ESG practices among strategies and their ability to influence behaviour. The
funds selected or under consideration, but also to platform’s ESG Manager oversees the application of
identify the best SRI funds for private banking and these ESG integration approaches and reports directly
asset management mandates. to business line management about all key aspects and
issues related to ESG integration within the various
The ESG integration process for appraising strategies.
infrastructure debt has been formalised and is applied
to all of the platform’s existing investments. This is a ESG integration based on defining and assessing
rigorous process that allows identified ESG risks to be material ESG risks from the earliest stages of
reported and monitored for each portfolio project. The investment then allows monitoring to be carried out
BRIDGE IV Senior subfund has been TEEC certified throughout the lifetime of investments, along with
since 2018 because of its focus on energy and remedial action where necessary. This approach helps
ecological transition. The platform’s first ESG report to reduce exposure to risks but also to develop new
was published for investors in 2019. The platform’s opportunities and initiatives to achieve positive ESG
management is committed to ensuring that investees impact within investees. Each private equity
integrate sustainability issues more into their investment strategy is unique and characterised by
businesses, because there is a major opportunity to specific features related to the sector or niche
have a positive impact in this sector. concerned.
The integration of ESG issues into the range of As a result, a custom ESG integration method is
products and services offered to private clients has created and then formalised in the investment
increased and changed significantly since it began in strategy’s documentation. The ESG investment
2016. The formalisation of the SRI Mandate has strategy may or may not relate to a specific theme
enabled private clients to guide their investments (such as life sciences or transport infrastructure) in
according to SRI strategies. Custom ESG integration which ESG criteria form an integral part of financial
allows them to combine their personal convictions analysis, investment decisions and, in some cases,
with financial performance. Relationship Managers’ contractual agreements.
major efforts to promote ESG integration among
clients has been a success, because the number of SRI i. initial integration corresponds to minority investment
mandates doubled between 2018 and 2019. At 31 strategies in which the team has little or no influence
December 2019, the French private banking business over governance. The responsible investment
had 54 SRI mandates. This sharp increase reflects the approach is based on a robust analysis of the ESG
growing demand for investments that are aligned with risks inherent in each investment/partnership
clients’ personal convictions, have a positive impact on opportunity;
the real economy and achieve a measurable return on
investment. ii. advanced integration means that ESG criteria are
included in decision-making processes and monitored
Digital RI training, launched in October 2019, helps over time, with active involvement in the governance
Relationship Managers achieve an in-depth of investee companies.
understanding of specific sustainable finance themes
and gives them the tools they need to promote ESG
integration in their clients’ portfolios.

Since funds managed by Edmond de Rothschild particular attention is paid to ESG matters at the
Private Equity (France) mainly take minority stakes in earliest stage of investment case analysis. Analysis
investee companies, it has little influence over their schedules have therefore been developed to assess:
ESG policy. Accordingly, in line with its values and
commitments to Responsible Investment, the asset - the target’s profile and initial ESG performance;
management company ensures that minority - the ESG performance of the sector concerned;
investment funds’ decision-making processes involve - the ESG risk universe inherent in the proposed
dual screening in terms of initial integration: (i) investment.
negative screening in terms of complying with the
Group’s Responsible Investment convictions, values Those matters are then brought to the attention of the
and commitments and (ii) positive screening by risk manager who, with the support of the ESG
looking for investment opportunities among Manager, will produce specific recommendations,
companies that have a best-in-class/best efforts or particularly when defining an ESG plan of action. That
best-in-universe profile. plan will help the investee to reduce its risk exposure
and improve on its initial ESG performance, making it
In particular, each investment opportunity is analysed more sustainable and economically useful.
from the ESG point of view using a specific As well as defining action plans, specific monitoring
questionnaire that assesses the relevant partner or indicators are adopted to help assess positive impact
investee’s profile and initial ESG performance. Through in terms of value creation. Wherever possible and
their financial and extra-financial analysis work, teams appropriate, impacts are expressed from the point of
seek to identify the best investment and partnership view of their contribution to achieving the SDGs.
opportunities among companies that show innovation
and a high level of ESG performance. While minority strategies use an investment screening
approach partly based on ESG considerations,
Minority investment funds focus on investment investment strategies involving greater influence over
opportunities in which they have obtained sufficient the investee do not rule out opportunities because the
information to assess the target’s ESG performance initial ESG performance is too low, but will instead
and ambitions. A company’s ESG profile will be seek to support innovation and transition in sectors
assessed alongside financial considerations. If a that are over-exposed to ESG risks. In that way,
target’s ESG performance appears to fall short of Edmond de Rothschild Private Equity (France)
Edmond de Rothschild Private Equity’s requirements, provides tailored support for investees and helps
the opportunity may be rejected. achieve a fair transition, supporting all participants in
the economy in their efforts to take account of major
Where Edmond de Rothschild Private Equity (France) sustainability issues.
holds majority stakes in companies, and so by
definition has greater power to influence those
companies’ governance, the ESG integration approach
is more advanced. As with minority investments,
At 31/12/2019: € million
Edmond de Rothschild Private Equity (France) total assets under 668.11
management
Proportion consisting of RI assets 81%

Proportion consisting of non-RI assets 19%
N.B.: in the Edmond de Rothschild (France) annual report, Edmond de Rothschild Private Equity (France)’s assets under management include the assets under management of the ERES II
SICAR and ERES III SICAR funds, to which it provides investment advice.
The 19% of assets under management classified as Those assets under management are set to fall and
non-RI correspond to “run-off” private equity then disappear naturally as former vintage years are
investment strategies that take into account material liquidated.
ESG issues but were not developed according to a
formal ESG integration methodology.

MANAGING CARBON RISKS RELATING The RI steering committee will oversee this work.
The next update of the roadmap is scheduled for
TO INVESTMENTS
2020, with the aim of extending it to cover other
asset management businesses.
In 2017, Edmond de Rothschild Asset Management
(France) sought to formalise a climate strategy
As part of the implementation of the existing
including a 2°C roadmap. The project started after the
roadmap, various analysis methods have been
signature of the United Nations’ Montreal Carbon
developed, including:
Pledge in 2015, resulting in a committment to
measuring and publishing annually the carbon
- a proprietary in-house rating model to quantify
footprint of its investments. The fund’s carbon
the main climate risks and opportunities within
footprint report is available on the Group’s website.
economic sectors and sub-sectors. In practice, this
means that in relation to climate risks, the roadmap
Policies
will not become diluted, remaining focused on a
limited number of sectors and issuers, because 90%
The roadmap aims to set out, in a pragmatic way, a
of climate risks arise from 10% of issuers operating
path to making Edmond de Rothschild Asset
in fewer than 10 economic sectors.
Management (France)’s investment strategy
- reviews focusing on four aspects: Regulation,
compatible with the 2°C scenario. It is a long-term
Technology, Markets and Reputation, through
process which could last until 2040, in contrast to
which teams have identified ten high-level risks
certain approaches currently adopted in the financial
including five for the 2017-2020 period, starting
markets. It also forms part of a continuous
with the coal industry.
improvement procedure, which aims to address
- reviews focusing on five aspects: Resource
current and future difficulties relating to
Management, Energy Sources, Products and
understanding, identifying and measuring climate
Services, Markets and Resilience, through which
challenges.
teams have identified 20 high-level opportunities.
The 2°C scenario, which is compatible with the
The roadmap is updated every 18-24 months as
Group’s Responsible Investment Policy and
progress is made on measurement methodologies –
Environmental Policy, was devised through in-depth
particularly as regards scope-3 and avoided CO2
discussions with the clients and staff members
emissions – as well as access to information and
concerned, as well as with other stakeholders. The
maturity impact analyses, in order to reassess the
commitment is clear: to guide investments in a way
action taken. In particular, the roadmap aims to
that will support a sustainable economy and reconcile
decarbonise portfolios gradually between now and
financial returns with environmental and social goals.
2040. This commitment has been defined in
This commitment accompanies that of integrating ESG
collaboration with clients, particularly institutional
matters into investment decisions on a large scale, and
investors.
is helping accelerate the transition to a low-carbon
economy. The 2°C roadmap is being applied first to
It also includes:
the equity and bond asset classes.
- the development of low-carbon asset
management expertise through a virtual low-
For Edmond de Rothschild Private Equity, climate
carbon global equity fund, which has shown the
issues are taken into account mainly through the ESG
teams’ ability to generate very strong returns in the
Integration process of each investment strategy,
low-carbon fund category, as calculated by MSCI
adjusted according to its specific features. In addition,
for AM League.
in line with the Edmond de Rothschild Group’s
environmental policy, Edmond de Rothschild Private
- initial application in products with the EdR New
Equity has since 2016 been measuring its own carbon
Green Deal fund, scheduled for launch in early
footprint to reflect the environmental impact of its
2020, which uses an investment strategy in line
operating activities.
with the 2°C roadmap.
A working group encompassing the Group’s other
Engagement with companies about climate-related
management activities began in 2019, so that the
matters is also made easier by lists of issuers that
existing roadmap can be applied to other activities,
are most exposed to climate risks, i.e. around 180
taking into account the specific features of each
identified worldwide in terms of scope 1+2+3
business line. emissions.

96% of Edmond de Rothschild Asset Management (France)’s open-end funds had measured their carbon
footprint by the end of 2019.
Climate issues: a holistic approach at the portfolio management level
• Integration of carbon and financial analyses • Proprietary data on scopes 1 and 2

• Potential impact on financial reporting • Investee companies encouraged to
• Evaluation of the specific extend their data to scope 3
to be applied and emissions
avoided
• Impact on investment decision • Publication of the carbon footprints of
investment strategies
5. Decision- 1. Carbon
making footprint
calculation
• Transparency and quality of • Business model and climate

2. Evaluation change
reporting 4. Shareholder
• Integration of the carbon theme dialogue and of companies' • Carbon strategy governance
engagement carbon • Ability to identify and manage
into ESG dialogue
strategy material carbon risks and opportunities
• Numerous individual
meetings withcompanies • Definition of a 2°C
world
• Participation in investor 3. Measurement of
coalitions innovation in
products
and services
• Ability to innovate in support of

energy transition (proprietary
quantitative indicator)
• Weighting per sector according to the
importance of the carbon issue
• Identification of companies that are winners /
losers in a 2°C world
In the private equity business, agroforestry and soil Since 2016, the Edmond de Rothschild Group has had
remediation impact investing strategies, along with a formal commitment to offsetting CO2 emissions
the strategy specialising in environmental (Scopes 1 and 2 of the Greenhouse Gas Protocol)
infrastructure and renewable energies, have arising from its activities. An “insetting” project,
developed investment opportunities that directly help consisting of offsetting its emissions within its own
limit carbon risks and support energy transition. The value chain, has been initiated in partnership with
impact strategy specialising in environmental Edmond de Rothschild Private Equity. In its first two
infrastructure and renewable energies has been years, the project offset 7,000 tonnes of CO2 by
awarded the GreenFin label, recognising its green planting more than 28,000 trees over an area of 113
credentials. hectares. As well as its high environmental value, the
project created jobs in the agricultural sector and
Because of their investment objectives, Edmond de raised awareness among numerous producers to help
Rothschild Private Equity includes these impact them address the challenges posed by climate
investing strategies in its carbon footprint change more effectively.
measurements so that it can also report on the
operational carbon footprint of its investments,
showing those that emit the most CO2, and thus
define possible ways of making them more
environmentally responsible.

SHAREHOLDER ENGAGEMENT AND In 2019, there was large-scale voting activity, and
VOTING POLICY Edmond de Rothschild Asset Management (France)
took part in 392 AGMs. Edmond de Rothschild Asset
Shareholder dialogue is an essential part of the Management (France) reports on its voting practices
Edmond de Rothschild Group’s fiduciary duty and role – i.e. its use of voting rights attached to shares held
as a responsible investor. It helps to clarify its by the funds it manages – through a specific annual
expectations as a responsible investor regarding report, which is prepared within four months of the
resolutions tabled in company AGMs. By engaging with end of each year. The report is available on the
companies, the Group can have a positive influence on website.
specific themes and encourage best practice. This
constructive dialogue enables it to support companies
in their efforts to achieve transparency and improve
performance over the long term.
392 AGMs in which Edmond de Rothschild France
took part in 2019
Policies
In 2019, Edmond de Rothschild Asset Management 88% of equity investees

(France) updated its voting policy for the 2019 voting
season. The voting policy is available on the Edmond
de Rothschild Group website. It applies to the entire The aim for Edmond de Rothschild Private Equity –
scope of Edmond de Rothschild Asset Management which has been a PRI signatory since 2016 – is not
(France). just to promote Responsible Investment through
innovation, but also to ensure that extra-financial
For Edmond de Rothschild Private Equity, the voting considerations are systematically factored into the
policy adopted in France is specific to the private development of all new investment strategies. Mindful
equity business because in many cases, investments of investees’ ESG performance, active involvement in
are in unlisted companies, represent minority stakes or their governance is essential to ensure that they
are made through funds of funds, which means that the adopt best practice and carry out the necessary
Group has no influence on the underlying fund’s voting remedial measures and action plans.
policy.
Edmond de Rothschild Private Equity’s shareholder
Edmond de Rothschild Private Equity France’s voting engagement consists of exercising all available voting
policy will be reassessed and formalised in 2020 and rights and adopting a role as an active shareholder
Edmond de Rothschild Asset Management (France)’s and attending all meetings where it has a seat on
voting policy will be updated for the 2020 voting investees’ management bodies. In particular, that
season. engagement ensures that ESG criteria are taken into
account in the strategic development of companies in
Edmond de Rothschild Asset Management (France)’s Edmond de Rothschild Private Equity France’s
shareholder engagement policy focuses on three main portfolio and that investments are consistent with the
aspects: its objectives, its engagement processes and Edmond de Rothschild Group’s long-standing
the results of its engagement. Asset managers meet convictions and values.
regularly with representatives of investee companies to
clarify the Group’s expectations as a responsible
investor and to assess their ESG rating.
Edmond de Rothschild Asset Management (France)

exercises its voting rights on stocks (excluding units in
external SICAV funds) in the portfolios it manages
where it holds more than 0.01% of the company’s
capital, irrespective of the nationality of the issuing
company, as long as the issuer provides sufficient
information and custodians can take the votes into
account.
Asset managers are responsible for exercising voting

rights. To facilitate voting and ensure that it is
consistent with the general SRI approach, Edmond de
Rothschild Asset Management (France) has set up an
organisation that centralises and co-ordinates all the
information needed to exercise the voting rights
attached to securities held by the funds it manages.

Management of The Group also rolled out a Responsible Purchasing
Policy in 2016. It is intended not just to monitor the
environmental impact practices of suppliers and subcontractors in terms
of sustainability, but also to raise awareness among
staff members involved in the purchasing process so
For several years, the Edmond de Rothschild Group that they take into account the social and
has been committed to limiting its use of energy environmental impacts of the products and services
resources, carefully monitoring its business travel they select. A campaign to deploy the Responsible
and managing office waste, even though its Purchasing Charter has also taken place within
environmental impact remains limited. The previous Edmond de Rothschild (France) so that the Group’s
chapter of this report (“Innovation in Responsible suppliers are aware of its commitments. The charter
Investment”) and the Group’s sustainability report is intended to be co-signed by the Group’s
discuss how climate risks are taken into account in suppliers, underpinning their commitment to issues
the various investment activities of Edmond de relating to human rights, the environment and
Rothschild (France) and the Group. business ethics.
The sustainability department works with the

Group’s General Resources Department to monitor
CO2 EMISSIONS LINKED TO ACTIVITIES projects within the main entities intended to achieve
ongoing improvements in performance and to
IN FRANCE update the environmental policy. The expertise of
staff members working on all aspects of the Group’s
environmental impact ensures that it is managed
consistently and that projects adopted to hit Group
Since 2010, Edmond de Rothschild (France) has targets are successful.
been carrying out carbon audits to monitor,
measure and reduce its impact in terms of CO2 The targets established by the Group have been
emissions. It has gradually reduced its carbon validated by its General Resources Department,
footprint after setting up various targeted projects which monitors indicators and projects to achieve
to reduce emissions. those targets. New targets will be analysed,
assessed and adopted in 2020 using the same
process.
The Group’s environmental management system,
Policies described in the environmental policy, addresses
the priorities that arose from the 2014 materiality
exercise. Reducing the carbon footprint of
Although the Edmond de Rothschild Group’s transactions and reducing business travel where
environmental impact is not a major material issue, appropriate are key action points and positive
it is working to reduce it and it is an important social results have been achieved as part of the
theme that the Group, as a responsible company, is continuous improvement approach adopted since
committed to addressing. that exercise.
To achieve that, the Group has adopted an Since 2010, the reference year of Edmond de
environmental policy aimed at formalising and Rothschild (France)’s first carbon audit, its carbon
measuring its impact and improving its performance footprint has been decreasing constantly.
in this area. It applies to all entities and describes
the Group’s commitment to managing its
environmental impact: 24% reduction in CO2 emissions in 2019 (1,344
- Undertakings and targets related to direct tonnes of CO2 equivalent vs. 1,766 in 2018)
environmental impact,
- Major efforts to measure and manage that impact,
- The Group’s desire to improve its environmental
performance and reduce its impact.
The policy has been validated by the Group’s

Executive Committee and will be reviewed in 2020
as part of work to identify new sustainability
targets.

WASTE AND PAPER MANAGEMENT consumption and its consequences, with the aim of
not only improving environmental performance but
Edmond de Rothschild (France) has taken major above all reducing the negative impact of excessive
steps in recent years to ensure that waste is energy consumption.
managed and that inputs are consumed in a
responsible and considered way.
Policies
Policies The Edmond de Rothschild (France) group’s
environmental policy addresses the priority of
The Group’s environmental policy guides its targets
reducing energy consumption and measuring it in
for reducing waste and managing its paper
order to set targets for reducing it over the long
consumption. The Group has a measurable influence
term.
over these two matters, which are assessed in its
carbon audit. It also addresses the protection of biodiversity, a
theme that is directly connected with the
The aim for 2020 is to analyse results achieved since
environmental impact of human activities. Climate
the materiality exercise was carried out in 2014, and
change is continuing to threaten global biodiversity
to set new targets consistent with the waste and
and the natural balance of all resources.
paper management efforts in order to update the
policy. The improvement targets adopted in 2014 to reduce
energy consumption will be assessed and reviewed
Waste management is difficult to monitor in the
in 2020 so that they can be adjusted to current
services sector, because the cost is often included in
requirements and the Group’s new sustainability
the charges levied by the buildings or districts in
targets.
which entities operate. However, the Edmond de
Rothschild Group has decided to monitor this Energy consumption represents the largest part of
indicator and more specifically the percentage of the carbon footprint The energy audits covering the
staff members who have access to a recycling various buildings owned or leased by Edmond de
system. Paper waste, which is Group’s the main Rothschild (France) have identified areas for
source of waste, is monitored and measured each improvement, which Edmond de Rothschild
year. (France)’s general resources specialists have taken
into account as part of their discussions and
Edmond de Rothschild (France) has a recycling
planning.
system for paper, aluminium, glass and plastic. The
IT waste that has the greatest economic impact is Initiatives taken in recent years have not only helped
processed by IT teams and recycled by specialist to improve energy performance, but have also
companies. Ink cartridges are also recycled. improved working conditions for staff members. The
installation of double glazing, LED lighting,
The Group’s various entities closely monitor their
movement detectors and improved air conditioning
paper consumption and the related figures are
systems have all had a positive impact on both the
published in the Group’s annual sustainability report.
environment and the workforce.
Paper consumption in France is stable. The
installation of multi-function printers (MFPs) that Since 2012, beehives have been installed in the
require users to present a personal badge in order immediate vicinity of one of the Bank’s buildings in
to retrieve printouts has influenced staff habits and Paris, and as a result more than 250,000 bees enjoy
reduced printing volumes. The digitisation of the diverse flora found in central Paris all year
working documents and centralisation of report round. Edmond de Rothschild (France)’s
printing has also helped avoid printing. commitment to protecting biodiversity has
continued with the installation of two insect hotels,
The Group’s General Resources Department makes
in collaboration with an environmental consultancy.
constant efforts regarding the use and sustainable
These shelters are installed in the Bank’s gardens
management of resources.
and attract insects and arachnids, which help bees
survive the winter. In summer, they are a place for
species like mason bees to lay eggs. A number of
2% increase in paper consumption in 2019 (42.3 nesting boxes and feeders have also been installed
tonnes versus 41.4 tonnes in 2018) to provide food and shelter for animals that are
useful for the gardens.
ENERGY CONSUMPTION
5% reduction in total energy consumption in 2019
Given the urgent nature of today’s climate issues, (4,628 MWh versus 4,877 MWh in 2018)
Edmond de Rothschild (France) and other Group
entities are addressing the theme of energy

Data reporting and
validation methods
Reporting scope Organisation, resources and monitoring

This declaration of extra-financial performance covers Specific tools and procedures, including the definition
of each indicator and its calculation methodology, are
all the activities of Edmond de Rothschild (France),
used:
not including its subsidiaries and branches outside
France. That scope represents 94% of Edmond de - Workforce-related indicators are collected and
Rothschild (France)’s workforce. consolidated via the Human Resources Department.
- Data regarding the Bank’s wider sustainability
Reporting organisation commitments, including information concerning the
Bank’s Responsible Investment activities, are
The collection of indicators is organised by the aggregated using information submitted by the
Edmond de Rothschild Group’s sustainability appropriate entities.
department. It is supported by the network of experts - Environmental data are consolidated in the carbon
in France, who contribute the data. The sustainability audit produced each year by the General Resources
department is the main contact for external auditors. Department.
Selection of indicators Key performance indicators are monitored and

validated at three levels: firstly at the operational level
In order to monitor the performance of the
within the entity itself, then by the Sustainability
sustainability approach followed since 2011, Edmond Department and finally by the departments directly
de Rothschild (France) has identified the most concerned by the various subjects. Discrepancies are
relevant key performance indicators pertaining to its analysed with the data contributors.
business dealings, influence and identified main risks.
The purpose of this approach is to guarantee that
reported information is genuine and consistent over
time.
Published key indicators

Published performance indicators Pages
% of Edmond de Rothschild (France)’s Supervisory Board members who are independent p. 46
Ethical and Number of subcontractors that have included GDPR clauses in their contracts with Edmond de Rothschild (France) p. 48
responsible Number of incidents requiring notification to the relevant authority. p. 48
behaviour Number of criminal convictions or corruption-related penalties p. 49
Number of unethical behaviour alerts raised during the year p. 49
% of workforce on open-ended contracts p. 50
Commitment to Proportion of staff members who attended at least one training course during the year p. 51
employees Proportion of staff members who received an annual performance review p. 52
Number of employees promoted to internal vacant positions during the year p. 52
Proportion of women among total management-level employees in France p. 54
In-house gender balance index score p. 54
Innovation in Total assets managed according to an SRI strategy / % of assets under management in France p. 58
Responsible % of open-end funds covered by a carbon footprint analysis p. 63
Investment Number of AGMs in which Edmond de Rothschild Asset Management (France) participated p. 64
Voting rate in the AGMs of equity investees p. 64
Management of % reduction in CO2 emissions in 2019 p. 65
environmental % change in paper consumption in 2019 p. 66
impact % reduction in total energy consumption in 2019 p. 67

Report by one of the Statutory Auditors, appointed as an independent
third party, on the consolidated declaration of extra-financial
performance in the Group’s management report
Year ended 31 December 2019
To the Edmond de Rothschild (France) annual general

meeting,
Responsibility of the statutory auditor designated as
In our capacity as Statutory Auditor of your entity, an independent third party
appointed as an independent third party and
accredited by COFRAC under number 3-1060 rév.2 On the basis of our work, our responsibility is to
(whose scope is available at www.cofrac.fr), we hereby provide a report expressing a limited assurance
report to you on the non-financial information conclusion on:
statementErreur ! Signet non défini. for the year - the compliance of the Statement with the
ended... (hereinafter the “Statement”), included in the provisions of article R. 225-105 of the French
management report pursuant to the legal and Commercial Code;
regulatory provisions of articles L. 225-102-1, R. 225- - the fairness of the information provided in
105 and R. 225-105-1 of the French Commercial Code accordance with article R. 225-105 I, 3 and II of the
(Code de commerce). French Commercial Code, i.e., the outcomes,
including key performance indicators, and the
The entity’s responsibility
measures implemented considering the principal
Pursuant to legal and regulatory requirements, the risks (hereinafter the “Information”).
Executive Board is responsible for preparing the
However, it is not our responsibility to comment on:
Statement, including a presentation of the business
- The entity’s compliance with other applicable legal
model, a description of the principal non-financial and regulatory provisions, in particular the French
risks, a presentation of the policies implemented duty of care law and anti-corruption and tax
considering those risks and the outcomes of said evasion legislation;
policies, including key performance indicators. - The compliance of products and services with the
applicable regulations.
The Statement has been prepared in accordance with
the entity’s procedures (hereinafter the “Guidelines”),
the main elements of which are presented in the
Statement and available on request from Edmond de
Rothschild’s Sustainability department.
Independence and quality control
Our independence is defined by the provisions of

article L. 822-11-3 of the French Commercial Code and
the French Code of Ethics (Code de déontologie) of
our profession. In addition, we have implemented a
system of quality control including documented
policies and procedures regarding compliance with the
ethical requirements, French professional guidance
and applicable legal and regulatory requirements.

Nature and scope of the work − we assessed the data collection process
implemented by the entity to ensure the
The work described below was performed in completeness and fairness of the Information;
accordance with the provisions of articles A. 225-1 et
seq. of the French Commercial Code determining the
conditions in which the independent third party
performs its engagement and with the professional
guidance of the French Institute of Statutory Auditors
(“CNCC”) applicable to such engagements, as well as
with ISAE 3000 – Assurance engagements other than
audits or reviews of historical financial information.
Our procedures allowed us to assess the compliance
of the Statement with regulatory provisions and the
fairness of the Information:
− we obtained an understanding of the entity’s
activities, the description of the social and
environmental risks associated with its activities
and, where applicable1, the impact of these
activities on compliance with human rights and
anti-corruption and tax evasion legislation, as well
as the resulting policies and their outcomes;
− we assessed the suitability of the Guidelines with
respect to their relevance, completeness, reliability,
objectivity and understandability, with due
consideration of industry best practices, where
appropriate;
− we verified that the Statement includes each
category of social and environmental information
set out in article L. 225-102-1 III for entities whose
shares are admitted to trading on a regulated
market or specifically covered by French order
no. 2017-1180: as well as information regarding
compliance with human rights and anti-corruption
and tax evasion legislation;
− we verified that the Statement presents the
business model and the principal risks associated
with the entity’s activities including where relevant
and proportionate, the risks associated with its
business relationships and products or services, as
well as its policies, measures and the outcomes
thereof, including key performance indicators;
− we verified, where relevant with respect to the
principal risks or the policies presented, that the
Statement provides the information required
under article R. 225-105 II;
− we assessed the process used to identify and
confirm the principal risks;
− we asked what internal control and risk
management procedures the entity has put in
place;
− we assessed the consistency of the outcomes and
the key performance indicators used with respect
to the principal risks and the policies presented;
− we verified that the Statement covers the scope of
consolidation, i.e., all the companies included in the
scope of consolidation in accordance with article
L. 233-16;

− for the key performance indicators and other
quantitative outcomes that we considered to be
the most important, we implemented:
• analytical procedures to verify the proper
consolidation of the data collected and the
consistency of any changes in those data,
• substantive tests, using sampling techniques, in
order to verify the proper application of the
definitions and procedures and reconcile the
data with the supporting documents. This work
was carried out at the Edmond de Rothschild’s
headquarter in Paris and covers 100% of the
consolidated data relating to the key
performance indicators and outcomes selected
for these tests;
− we referred to documentary sources and
conducted interviews to corroborate the qualitative
information (measures and outcomes) that we
considered to be the most important;
− we assessed the overall consistency of the
Statement based on our knowledge of all the
consolidated entities.
We believe that the work carried out, based on our

professional judgement, is sufficient to provide a basis
for our limited assurance conclusion; a higher level of
assurance would have required us to carry out more
extensive procedures.

Means and ressources Conclusion
Our work was carried out by a team of 5 people Based on our work, nothing has come to our attention
between December 2019 and March 2020 and took a that causes us to believe that the non-financial
total of 3 weeks. information statement is not in accordance with the
applicable regulatory provisions and that the
We were assisted in our work by our specialists in
Information, taken as a whole, is not presented fairly in
sustainable development and corporate social
accordance with the Guidelines.
responsibility. We conducted approximately 15
interviews with the people responsible for preparing
the Statement, representing executive management,
sustainability, compliance, human resources, and Neuilly-sur-Seine, 17th April 2020
responsible investment departments.
One of the Statutory Auditors
PricewaterhouseCoopers Audit
Philippe Chevalier Pascal Baranger

Partner Sustainable Development
Director

Appendix: Information that we considered the most important
- Voting rate of the universe invested in equities;
Key performance indicators and other quantitative
- C02 emissions related to activities in France in
results:
2019;
- Percentage of independent members on the
- Change in CO2 emissions linked to activities in
Supervisory Board of Edmond de Rothschild France
France in 2019;
at 31 December 2019, compared with 1/3 as
stipulated by the Middlenext code; - Paper consumption in 2019;
- Number of members of the Supervisory Board of - Change in paper consumption between 2019 and
Edmond de Rothschild France ; 2020;
- Number of independent members of the - Change in overall energy consumption between
Supervisory Board of Edmond de Rothschild in the 2019 and 2018;
middle next sense;
- Share of electricity consumed in France from
- Number of subcontractors who have included the renewable sources in 2019.
RGPD clauses in the contract drawn up with
Edmond de Rothschild France;
- Percentage of sub-contractors having included
GSPD clauses in the contract drawn up with
Edmond de Rothschild in 2019;
- Number of incidents requiring notification to the
authority in 2019;
- Number of criminal sanctions related to corruption
in 2019;
- Number of alerts related to unethical behaviour
identified in 2019;
- Total number of employees as of 31/12/2019;
- Total number of active DTAs as of 12/31/2019;
- Percentage of employees in France having
attended at least one training course in 2019;
- Share of permanent contracts among the Edmond
de Rothschild France workforce at 31 December
2019;
- Result of the professional equality index in 2019;
- Percentage of women executives in the Edmond
de Rothschild France executive population in the
professional equality index in 2019;
- Number of employees having benefited to an
internal mobility;
- Percentage of employees who participated in the
annual performance evaluation in 2019;
- Amount of assets managed by Edmond de
Rothschild Asset Management France according to
SRI strategies in 2019;
- Total assets managed by Edmond de Rothschild;
- Percentage of assets under management by
Edmond de Rothschild Asset Management France
according to SRI strategies in 2019;
- Percentage of Edmond de Rothschild Asset
Management France funds having measured their
carbon footprint in 2019;

- Support Training "Manager in the context of labour
-
Qualitative information (actions and results) law" ;

- Governance procedure: Verification of the criteria for - Example of fund performance analysis sheet -
the appointment and renewal of members of Bouygues France ;
governance bodies";
- ESG integration procedure;
- E-mail on current affairs (EDRAM) ;
- SRI reporting for the fourth quarter of 2019 ;
- Example of e-learning 2019 - "DPO scorecard on
- Presentation "Insetting Edmond de Rothschild
100% training completion;
Group" ;
- Example of the "RGPD & Safety" sheet;
- First two reports of the programme "Insetting EDR's
- Pre-evaluation of the RGPD project; Carbon Emissions in Nicaragua" and "Insetting EDR's
Carbon emissions by planting trees in Nicaragua" ;
- Follow-up table;
- Support presentation "Synthesis of the Committee's
- Anti-corruption system - Procedure for alerting preparation" 2/ Example of a report (2019) sent by
employees July 2018 (EDR France);
ISS;
- Client's money laundering risk assessment sheet - Example of an awareness mail on the project to
"Fiche d'évaluation du risque blanchiment Personne
suppress the use of plastic;
physique (LAB)";
- Installation of multifunction printers with access
- Training orientations in 2019 ; control (MFP);
- Training support "Manager in the context of labour
- December 2019 - Energy audit "Mandatory energy
law". audit report" by BNP Paribas "Partners & Services".
- Procedure for the prevention of psycho-social risks
v2020 ;

Report of the Supervisory Board on
Corporate Governance
(Report prepared pursuant to Article L. 225-68 of the French Commercial Code)
Members of the governance bodies

Pursuant to the provisions of Article L. 225-68, the aim
of this report is to present the composition of the
Supervisory Board, how the principle of balanced
SUPERVISORY BOARD
gender representation is applied, the preparation and
organisation of the Supervisory Board’s work, and the
Chairman
Supervisory Board’s observations on the report of the
Executive Board and the financial statements for the
year ended 31 December 2019.
This report was approved at the Supervisory Board Vice-Chairwoman

meeting on 11 March 2020.
Ariane de Rothschild
REFERENCE TO A CORPORATE
GOVERNANCE CODE Members
Louis-Roch Burgard
The Company does not formally refer to a specific Jacques Ehrmann

corporate governance code.
Jean Laurent-Bellue
Véronique Morali
Vincent Taupin (since 15 May 2019)

STRUCTURE, COMPOSITION AND
Cynthia Tobiano (since 15 May 2019)
OPERATING PROCEDURES OF THE
GOVERNANCE FRAMEWORK AT Daniel Trèves (until 11 December 2019)
EDMOND DE ROTHSCHILD (FRANCE)
Christian Varin
Presentation of the governance

Secretary
framework
Patricia Salomon (until 11 December 2019)
Edmond de Rothschild (France) is a public limited

company (société anonyme) governed by a
EXECUTIVE BOARD
Supervisory Board and an Executive Board. In this
two-tier governance structure, the executive function Chairman
of the Executive Board is clearly separated from the
Renzo Evangelista (since 14 March 2019)
oversight and management control function of the
Supervisory Board. Vincent Taupin (until 14 March 2019)

Member and Chief Executive Officer
Philippe Cieutat
STATUTORY AUDITORS
Principal Statutory Auditors
Cabinet Didier Kling & Associés
PricewaterhouseCoopers Audit
REPRESENTATIVES OF THE SOCIAL AND
ECONOMIC COMMITTEE
Alain Tordjman
Florent Goulet

Collective decision-making by the In addition, the Bank has a number of committees
overseeing specific functions (Lending, Finance,
Executive Board Complaints and Litigation, etc.) made up of members
of the senior management team and the main
At 31 December 2019, the Executive Board had two
department managers.
members with collective responsibility for the
Company’s management.
All the Executive Board members are effective

managers and are declared as such to the ACPR
(French Prudential Supervisory and Resolution
Authority). In accordance with the law and the
Company’s Articles of Association, the Executive
Board must report on its stewardship to the
Supervisory Board no fewer than four times per year,
or more frequently when so required by particular
circumstances.
The Executive Board’s structure and the balance of

power between its members were reviewed by the
Supervisory Board on 12 March 2019.
The Executive Board meets whenever the Company’s

interests so require, and at least on a weekly basis
The committees with management responsibilities for

the Bank are as follows:
- the Executive Board, which has overall

responsibility for the conduct of the
Company’s affairs, meets on a weekly basis,
- the Operations Committee, which coordinates

support functions and cross-divisional projects
between the various Edmond de Rothschild
(France) entities, meets on a monthly basis
- the Management Committee, which

coordinates the Edmond de Rothschild
(France) divisions and support functions,
meets every month

have any conflicts of interest, they possess
A Supervisory Board providing
sufficient time and they comply with the rules
rigorously structured oversight on the number of corporate offices that may
be held concurrently, to give the Company’s
management team the broadest possible
Remit of the Supervisory Board range of skills and expertise
- set the remuneration of Executive Board

members when it does not take the form of a
The Board conducts permanent control of the salary
Executive Board’s stewardship of the Company. Its
role is to make sure on behalf of shareholders that the - choose a Chairman from among the Executive
business is managed as effectively as possible. It helps Board members it has appointed
to promote the Company’s values, including ensuring
- decide on the allocation of duties within the
that the conduct of the Company’s and Group’s
Executive Board based on their individual
activities upholds the highest ethical standards to
experience, expertise and skills
maintain the reputation of the Bank and, more
broadly, that of the Edmond de Rothschild Group. The
- regularly review the strategic direction of the
Chairman of the Supervisory Board organises and
Company and the group formed of the
directs the Board’s work and specifically ensures that
Company and the entities it consolidates in its
the Supervisory Board members are able to fulfil their
financial statements (the Group), its
duties.
investment, divestment and internal
restructuring plans, the Group’s general
human resources policy, including its
Pursuant to Article 17 of the Articles of Association, employee remuneration, profit-sharing and
the Executive Board has to consult with and obtain the incentive policy
prior consent of the Supervisory Board for all the
- ensure the accuracy and fair presentation of
following transactions:
the parent company and consolidated financial
statements
- any acquisitions of investments, in any form - consider the acquisitions and sales of
whatsoever investments or assets, partnership, alliance
and/or cooperation agreements, and,
- the sale or discontinuation in any form, generally speaking, any transaction or any
including by means of the winding-up or commitment liable to have a material impact
liquidation of a company, of all or part of an on the Group’s financial position or operations
investment
- keep shareholders properly informed,
- any purchase and any sale of property including about the controls it performs on the
holdings by nature information provided by the Group
- any bond issue - ensure that the Company has procedures in

place identifying, evaluating and monitoring
- any collateral granted to guarantee its commitments and risks, including off-
commitments given by the Company itself balance sheet, and appropriate internal control
The Board also has the power to: It is kept informed by its Chairman and its committees
of any significant events concerning business trends,
the financial and cash position of the Company and
- appoint its Chairman and its Vice-Chairman the Group.
- appoint the members of the Company’s

Executive Board, after taking steps to ensure
Operating procedures of the Supervisory Board
they are fit-and-proper persons, they do not
to use their skills and expertise, to devote sufficient
time and attention, to exercise independent judgment,
At 31 December 2019, the Supervisory Board had nine to hold no more than the permitted number of
members, one-third of them women. It is chaired by corporate offices concurrently, to maintain
Baron Benjamin de Rothschild. Baroness Ariane de confidentiality and to avoid conflicts of interest. The
Rothschild is Vice-Chairwoman of the Supervisory Supervisory Board evaluates its operating procedures
Board. Four Supervisory Board members are well- once a year. To this end, the Supervisory Board
known figures from outside the Edmond de Rothschild decided to conduct an annual self-assessment at its
Group. All of them qualify as independent members meeting on 24 November 2017 and amended its rules
based on the criteria adopted by the Supervisory of procedure accordingly. The rules of procedure also
Board on 24 November 2017. state the resources available to members, and lay
down the remit, role and operating procedures for the
Supervisory Board’s three Committees, namely the
In addition, since Edmond de Rothschild (France) acts Audit Committee, the Risk Committee and the
Remuneration Committee.
as custodian on behalf of its asset management
subsidiaries, it also has to comply with the
requirements of Directive 2014/91/EU, the so-called
UCITS V Directive, concerning the independence of The remuneration paid to Supervisory Board members
management companies from custodians belonging to is allocated pursuant to Article L. 225-83 of the French
the same group. In this respect, the Autorité des Commercial Code based on rules set by the
Marchés Financiers (AMF), acting under the authority Supervisory Board, of which one criterion is actual
of the ACPR, confirmed that at least two of the attendance at meetings.
Supervisory Board members of Edmond de Rothschild
(France) met the independence criteria laid down in
said Directive, thereby satisfying its obligations.
The schedule of Supervisory Board meetings for a
given year is set in the final quarter of the preceding
year. The four annual meetings usually take place in
Supervisory Board members are appointed by the March, May, August and December. Additional
Ordinary General Meeting of the Shareholders for a meetings are held whenever events so require.
term of three years.
In 2019, the Supervisory Board met on:

Since the Company’s shares are not admitted to
trading on a regulated market, it did not have to - 6 and 12 March
comply in 2019 with the requirements of
Article L. 225-18-1 of the French Commercial Code - 15 May
concerning the relative proportion of men and women
among the Directors. That said, Edmond de Rothschild - 28 August
(France) is mindful of its responsibilities to its
- 11 December
workforce and society at large and aims to foster
diversity at every level of its organisation, especially
among its Supervisory Board members. Accordingly, it
makes sure that criteria related to skills and expertise, In 2019, members’ attendance rate at Supervisory
professional experience, age and gender are applied Board meetings was 88.64%. Supervisory Board
strictly in the selection process for Supervisory Board meetings are generally scheduled to start at 10am and
members in order to create the requisite diversity. end at approximately 1pm.
The Supervisory Board has its own rules of procedure

(updated most recently on 6 March 2019), which are
given to its members in a formal process and always Supervisory Board members are convened to
on hand in the secure document sharing app to which meetings with at least one week’s notice by ordinary
only they have access. The rules of procedure state mail. They receive the full pack of papers for the
the role of the Supervisory Board, its operating meeting a reasonable time in advance by means of a
procedures, the rules and obligations incumbent on its secure IT application tailored to the work of the
members, including to act as a fit-and-proper person, Supervisory Board and its Committees.
their duties. Such information should be provided to
them as swiftly as possible.
Executive Board members are invited to attend
Supervisory Board meetings. The Statutory Auditors
are asked to attend Supervisory Board meetings at
which the financial statements are reviewed, and List of offices held by members of the
generally speaking, they may also be called to a
Supervisory Board meeting whenever it is deemed
Executive Board and Supervisory
useful for them to attend. Board during 2019
The Supervisory Board members receive notice of and Supervisory Board:

may attend the Ordinary General Meeting of the
Shareholders.
Members appointed by the Social and Economic
Committee are invited to attend meetings of the
Supervisory Board and the Ordinary General Meeting
Chairman:
of the Shareholders.
Edmond de Rothschild Holding SA (Switzerland)
Holding Benjamin et Edmond de Rothschild, Pregny SA

(Switzerland)
Work performed by the Supervisory Board Edmond de Rothschild (Suisse) SA (until 26 April 2019)
The Caesarea Edmond Benjamin de Rothschild

Development Corporation Ltd (Israel)
As a matter of course, the papers given to Supervisory
Board members include the following documents: the OPEJ Baron Edmond de Rothschild (France)
draft minutes of the previous Supervisory Board
meeting; a presentation of the business trends and the The Adolphe de Rothschild Ophthalmology Foundation
financial results of Edmond de Rothschild (France) (France)
over the period since the previous meeting;
commentary on each division’s business trends and Maurice and Noémie de Rothschild Foundation
(Switzerland)
results; a summary of dealings with the regulator; and
a list of significant client loans with details of any
Edmond de Rothschild New York Foundation (USA)
collateral held. The Chairman of the Audit Committee
provides an oral update on the Committee’s work Edmond de Rothschild Foundation (Switzerland)
concerning its controls on the quality of accounting
and financial information, and the Chairman of the Risk
Committee provides an update on periodic control,
compliance, permanent control and risk control. The Chairman of the Board of Directors, Edmond de
Rothschild SA
papers given to Supervisory Board members for the
March meeting include the parent company and
consolidated financial statements, plus the report on
internal control and on risk measurement and Chairman of the Supervisory Board:
monitoring, prepared pursuant to the government
decree dated 3 November 2014 concerning internal Edmond de Rothschild (France)
control, as amended by the government decree of 31
August 2017. The papers given to Supervisory Board Société Française des Hôtels de Montagne (SFHM)
members for the August meeting include the audited

interim financial statements. The Supervisory Board
members may request from the Executive Board any Director:
additional information required for the performance of

La Compagnie Fermière Benjamin et Edmond de
Rothschild SA
Director:
La Compagnie Vinicole Baron Edmond de Rothschild SA
Baron et Baronne Associés (holding company of Société
La Compagnie Générale Immobilière de France Champenoise des Barons Associés)
(Cogifrance)
Amdocs Limited (USA)
EBR Ventures
Edmond de Rothschild Foundation for Scientific Research

(France) Secretary-General of the Foundation Council, OPEJ
Foundation
Supervisory Board member, Domaines Barons de

Member of the Louvre endowment fund (since 21
Rothschild (Lafite)
February 2019)
Ariane de Rothschild Louis-Roch Burgard
Supervisory Board member:

Chairwoman of the Board of Directors: Edmond de Rothschild (France)
Edmond de Rothschild (Suisse) SA (since 26 April CNIM

2019, previously Vice-Chairwoman)
Administration et Gestion SA (Switzerland)

Chairman:
Compagnie Benjamin de Rothschild Conseil SA
(Switzerland) Saur (until 18 December 2019)
Holding d’Infrastructures des Métiers de

l’Environnement (Hime) (until 18 December 2019)
Chairwoman of the Supervisory Board, Edmond de
Rothschild Asset Management (France) (until 14 May Blue Green European Holdings (until 18 December
2019) 2019)
Cise Réunion (until 18 December 2019)

Vice-Chairwoman of the Board of Directors:
Compagnie Guadeloupéenne de Services Publics (until
Edmond de Rothschild SA 18 December 2019)
Holding Benjamin et Edmond de Rothschild, Pregny SA Saur International (until 18 December 2019)
(Switzerland)
Société Martiniquaise de Distribution et de Services
Edmond de Rothschild Holding SA (since 6 June 2019) (until 18 December 2019)
Adolphe de Rothschild Ophthalmology Foundation (since Stereau (until 18 December 2019)

13 December 2019)
Sudeau (until 18 December 2019)
Terre des Trois Frères (until 18 December 2019)

Vice-Chairwoman of the Supervisory Board:

Chairman, Chief Executive Officer and Director,
Société Française des Hôtels de Montagne (SFHM) Compagnie des Eaux de Royan (until 18 December
2019)
Consejero de Gestion y Técnicas del Agua (Gestagua) Carrefour Property España (Spain) (until 30 June 2019)
(Spain) (until 18 December 2019)
Supervisory Board member, Edmond de Rothschild

Director (Marafiq Saur Operation & Maintenance Co. -
(France)
MASA) (Saudi Arabia) (until 18 December 2019)
Manager, Altarea Management (SNC) (since 1 July 2019)

Manager, Saur Loisirs (until 18 December 2019)
Co-manager:
Representative, Holding d’Infrastructure des Métiers de
l’Environnement as Chairman: SCI Jakerevo
Finasaur (until 18 December 2019) SC Testa
Novasaur (until 18 December 2019)
Chairman, CNCC (French national council of shopping

centres) (since 28 March 2019)
Jacques Ehrmann
Jean Laurent-Bellue
Chief Executive Officer, Altarea-Cogedim group (since 1
July 2019) (operational role)
Chief Executive Officer, Altafi 2 (SAS) (since 1 July 2019) Edmond de Rothschild (France)
KPMG SA
Chairman of Tamlet (SAS) KPMG Associés
Member, Frojal’s Executive Board (SA) Director:
Edmond de Rothschild (Suisse) SA

Chairman and Chief Executive Officer, Carmila (until 30
June 2019) Edmond de Rothschild (Monaco) (since 27 March 2019)
Holding Benjamin et Edmond de Rothschild – Pregny SA

(Switzerland)
Chairman of the Board of Directors, Carrefour Property
Italia (Italy) (until 30 June 2019)
Edmond de Rothschild SA
Rotomobil
Director: Actions Addictions foundation
Atacadao SA (Brazil) (until 30 June 2019)
Carrefour SA (Turkey) (until 30 June 2019) Véronique Morali

Association Le Siècle
Chairwoman, Webedia’s Executive Board
Member, Strategy Committee, Pour de Bon SAS
Chairwoman and Chief Executive Officer, Ringmedia (until

12 February 2019)
Chairwoman:
Vincent Taupin
Fimalac Développement (Luxembourg)
Clover SAS
Executive Board Chairman, Edmond de Rothschild
(France) (until 14 March 2019)
Chairwoman of the Board of Directors, Viaeuropa
Chief Executive Officer:
Chief Executive Officer, Webco

Edmond de Rothschild SA (until 28 August 2019)
Edmond de Rothschild (Suisse) (since 14 March 2019)

Director:

Chairman of the Board of Directors:
Edmond de Rothschild (Europe) (Luxembourg) (since
Melberries (SAS) (until 31 October 2019) 26 March 2019)
Paris Institute of Political Studies (SciencesPo) Edmond de Rothschild (Monaco) (since 27 March 2019)
Edmond de Rothschild Asset Management (Luxembourg)

(until 21 March 2019)
Edmond de Rothschild Asset Management (Suisse) (until
Publicis Groupe (until May 2019)
2 May 2019)
Edit Place (until 31 October 2019)

Chairman of the Supervisory Board:
Tradematic
Edmond de Rothschild Corporate Finance (until 9 May
2019)
Manager, Webedia International SàRL (Luxembourg) Cleaveland (until 9 May 2019)
Fimalac Développement’s permanent representative, Non-voting advisor, Supervisory Board, Edmond de

Board of Directors of Groupe Lucien Barrière
Rothschild Asset Management (France) (since 14 May
2019, previously Vice-Chairman of the Supervisory Board)
Chairwoman, Association Force Femmes

(France) (since 15 May 2019)
Board member of institutions and public-interest entities:

Edmond de Rothschild (Europe)
Director: Edmond de Rothschild (Monaco)
Edmond de Rothschild Asset Management (UK) Limited Edmond de Rothschild (UK) Limited

(Luxembourg)
Israel-France Chamber of Commerce & Industry

Daniel Trèves
EDRRIT Limited
Chairman, Huniel Conseil (Switzerland)

Permanent representative, Edmond de Rothschild
(France) on the Supervisory Board of:
Edmond de Rothschild Assurances et Conseils (France) Director:

(until 10 May 2019)
Edmond de Rothschild Private Equity (France) (until 7 (Switzerland)
May 2019)
Associated Investors (British Virgin Islands)
Rolex Holding (Switzerland) (until 20 June 2019)
Permanent representative, Edmond de Rothschild SA on

Rolex SA (Switzerland) (until 19 June 2019)
Cogifrance’s Board of Directors (until 23 April 2019)
Edmond de Rothschild (France) (until 11 December 2019)

Cynthia Tobiano
Edmond de Rothschild Asset Management (France) (since
17 October 2019)
Chief Executive Officer, Edmond de Rothschild Holding

SA (Switzerland)
Christian Varin
Chief Operating Officer, Edmond de Rothschild (Suisse)

(since 14 March 2019)
Director:
Chairwoman of the Supervisory Board, Edmond de Aminter (Belgium) (until 18 December 2019)
Rothschild Asset Management (France) (since 1 October
2019) Edmond de Rothschild SA
Gingko (Luxembourg)
(France) (since 15 May 2019) Josi Group (Belgium)
Fovabis SA (Belgium)
Director:
Edmond de Rothschild (Israel) Ltd.
Compagnie Benjamin de Rothschild Conseil SA Supervisory Board member:

(Switzerland)
Edmond de Rothschild Buildings Boulevard Limited
(Israel) Edmond de Rothschild Private Equity (France)

Chairman, SAS EDR Immo Magnum
Renzo Evangelista Vice-Chairman of the Supervisory Board, Edmond de

Rothschild Asset Management (France) (since 14 May
Executive Board Chairman, Edmond de Rothschild 2019)
(France) (since 14 March 2019)

Supervisory Board Chairman, Edmond de Rothschild Private Equity (France)
Corporate Finance (since 9 May 2019), previously
permanent representative of Edmond de Rothschild
(France)
Permanent representative, Edmond de Rothschild SA on
the Board of Directors:
Financière Eurafrique
Assurances et Conseils (France)
Cogifrance (since 23 April 2019)
Permanent representative, Edmond de Rothschild Permanent representative, Edmond de Rothschild

(France) on the Supervisory Board of Edmond de (France) on the Supervisory Board of Edmond de
Rothschild Private Equity (France) (since 7 May 2019) Rothschild Assurances et Conseils (France) (since 10 May
2019)
Permanent representative (since 9 May 2019), Edmond de

Non-voting advisor, Edmond de Rothschild Asset Rothschild (France), Vice-Chairman of the Supervisory
Management (France) (since 14 May 2019) Board, Edmond de Rothschild Corporate Finance
Manager, CFSH Luxembourg SàRL (until 7 February 2019)
Philippe Cieutat
Member of the Board of Directors, Zhonghai FMC (China)

Executive Board member and Chief Executive Officer
(since 14 March 2019) of Edmond de Rothschild (France)
Chief Executive Officer, Edmond de Rothschild SA (since

Board Committees
28 August 2019, previously Chief Operating Officer)
The Supervisory Board’s rules of procedure lay down

Chairman of the Board of Directors: the operating procedures for the three Board
Committees – the Audit Committee, the Risk
Financière Boréale Committee and the Remuneration Committee.
Edmond de Rothschild Immo Premium
Chairman of the Supervisory Board, Cleaveland (since 9

May 2019, previously Supervisory Board member)

Audit Committee - overseeing the selection and reappointment of
Statutory Auditors, expressing an opinion on
the fees they propose to charge and
The members of the Audit Committee are chosen from submitting the results of their work to the
among the Supervisory Board members. It meets at Board
least once a quarter and is convened by its Chairman.
- ensuring the independence of the Statutory
Auditors and their objectivity in respect of
Statutory Auditors belonging to networks
At 31 December 2019, the members of Edmond de providing both audit and consulting services,
Rothschild (France)’s Audit Committee were: as well as, more generally, reviewing,
controlling and evaluating any and all factors
- Jean Laurent-Bellue (Chairman), liable to affect the accuracy and fair
presentation of the financial statements
- Véronique Morali and Louis-Roch Burgard.
- setting the rules under which the Statutory
Auditors may perform non-audit assignments
The role of the Audit Committee, which has its own and entrusting additional audit assignments to
rules of procedure, is to assist the Supervisory Board. external auditors
Its remit covers the quality of accounting and financial
- reviewing the details and suitability of the fees
information produced within the Group made up of
paid by the Group to the Statutory Auditors
Edmond de Rothschild (France) and its consolidated
and ensuring that these fees and the
subsidiaries, and the monitoring of the audit
corresponding services are not liable to
conducted by the Statutory Auditors and their
compromise the Statutory Auditors’
independence.
independence
More specifically, it is tasked with:
- making sure that the statutory and regulatory
- ensuring the relevance and consistency of the accounting and financial requirements
accounting methods adopted to prepare the applicable to the Group are met
parent company and the consolidated financial
statements, reviewing and assessing the scope
of consolidation and reviewing and verifying The Audit Committee meets, whenever convened by
the suitability of the accounting rules applied its Chairman, as often as required but no less than
by the Group once per quarter, prior to each Supervisory Board
meeting. In 2019, it met on:
- reviewing the parent company and
consolidated financial statements, the budgets - 5 March
and forecasts prior to their presentation to the
Board. To this end, it reviews with the - 14 May
Company’s management and Statutory
Auditors the quarterly, interim and annual - 27 August
financial statements, the accounting principles
and methods, the Group’s audit and internal - 10 December
control principles and methods, plus the
analysis and the reports related to financial
reporting, accounting policy and
The Executive Board members and the Chief Financial
communications between the Company’s
Officer of Edmond de Rothschild (France) both have a
management and Statutory Auditors
standing invitation to attend Audit Committee
meetings. The Chief Internal Auditor, the Head of
- controlling the quality and compliance with
Compliance and Permanent Control and the Head of
internal control procedures, assessing the
the Central Risk Department are invited to attend its
information received from management,
meetings in an advisory capacity.
internal committees and internal and external
audits concerning the preparation and
The Audit Committee has drawn up a work
processing of accounting and financial
programme, with the March and August meetings
information

devoted in particular to a review of the full-year and
interim financial statements conducted together with
the Executive Board members, the Chief Financial More specifically, it is tasked with:
Officer and the Statutory Auditors. No less than twice
- generally speaking, advising the Supervisory
per year, the Audit Committee meets representatives
Board on the Bank’s overall strategy and its
of the Statutory Auditors to review the scope of their
existing and future risk appetite, and
audit programme and the services they could be asked
controlling implementation of this strategy by
to provide.
the Bank’s effective managers and by the head
of the risk management function
It may request any information or ask anyone to - examining the internal audit’s annual audit
appear before it as is required or useful for the plan prior to its approval by the Supervisory
fulfilment of its duties. Board
- making sure that the statutory and regulatory

requirements on internal, permanent and
The Audit Committee reports on its work and provides periodic control applicable to the Group are
its opinions and recommendations to the Supervisory met
Board. The Chairman of the Audit Committee presents
its work to the Supervisory Board. - reviewing the risk control framework as a
whole and in summary form
- without prejudice to the terms of reference of

Minutes of these meetings are circulated to all the Remuneration Committee, reviewing
members of the Committee and of the Executive whether the incentives provided for by the
Board and are made available to members of the remuneration policy and practices are
Supervisory Board. compatible with the Bank’s position with
regard to its risk exposure, its capital, its
liquidity and the probability and timing of the
expected profits.
Risk Committee
The Risk Committee was established on 15 March The Executive Board members, the Chief Financial
2017, and its members are chosen from among the Officer of Edmond de Rothschild (France), the Chief
Supervisory Board members. It meets at least once a Internal Auditor, the Head of Compliance and Control
quarter and is convened by its Chairman. and the Head of the Central Risk Department have a
standing invitation to Risk Committee meetings.
At 31 December 2019, the members of Edmond de

Rothschild (France)’s Risk Committee were: The Risk Committee may request any information or
ask anyone to appear before it as is required or useful
- Jean Laurent-Bellue (Chairman), for the fulfilment of its duties.
- Véronique Morali and Louis-Roch Burgard.
The Committee reports on its work and informs the

Supervisory Board of its opinions and
The role of the Risk Committee, which has its own recommendations. The Chairman of the Risk
rules of procedure, is to assist the Supervisory Board. Committee presents its work to the Supervisory
Its remit covers monitoring the effectiveness of the Board.
organisation and implementation of internal control
and risk management at the Group formed of Edmond
de Rothschild (France) and its consolidated
subsidiaries, as well as conformity with the applicable Minutes of these meetings are circulated to all
compliance regulations and the related guidelines laid members of the Committee and of the Executive
down by the Group.
Board and are made available to members of the
Supervisory Board.
REMUNERATION AND COMMITMENTS

GIVEN TO CORPORATE OFFICERS
Remuneration Committee Pursuant to order 2019-1234 of 27 November 2019 on
executive pay at listed companies and implementing
decree 2019-1235 of the same date enacting into
The Remuneration Committee issues opinions on the French law Directive (EU) 2017/828 of 17 May 2017
general remuneration policy of the Edmond de amending Directive 2007/36/EC with a view to
promoting a long-term commitment from
Rothschild (France) Group as proposed by the
shareholders, sociétés anonymes [public limited
Executive Board. Every year, it makes sure this policy
companies] having solely debt securities listed on a
is abided by. It makes recommendations to the regulated market are exempt from the so-called say-
Supervisory Board on all components of remuneration on-pay regime (Articles L. 225-82-2, L. 225-100-II and
paid to Executive Board members. III of the French Commercial Code).
The Remuneration has four members: Benjamin de Edmond de Rothschild (France) does not thus fall
Rothschild (Chairman), Ariane de Rothschild, within the scope of the new arrangements set out
Véronique Morali and Christian Varin. It meets at least above, which are applicable to General Meetings
convened to approve financial statements for the first
once every year. Under the banking regulations, the
financial year ending after 28 November 2019, i.e., for
Company has to prepare a report on remuneration
the 2020 Annual General Meeting.
policy and practices every year. This report is filed
with the ACPR (French Prudential Supervisory and
Resolution Authority).
In addition, its majority shareholder is no longer a
listed company. Secondly, given the ownership
structure of the Edmond de Rothschild Group, the
As part of its work, the Remuneration Committee ultimately controlling party of Edmond de Rothschild
verifies that: (France) determines its remuneration policy.
- its assessment of remuneration includes all the

relevant components
Accordingly, no disclosures concerning the
remuneration and commitments given to the
- each proposed element is in the Company’s
corporate officers of Edmond de Rothschild (France)
general interest are provided in this report.
- remuneration is comparable with general

practice in banking and finance
- remuneration is linked to performance metrics

OTHER DISCLOSURES REQUIRED
- all remuneration components comply with the
PURSUANT TO ARTICLE L. 225-37-4 OF
latest applicable regulations
THE FRENCH COMMERCIAL CODE
It also reviews:
Information about the agreements
- the remuneration policy adopted by Edmond referred to in Article L. 225-37-4, 2° of
de Rothschild (France) and its subsidiaries
the French Commercial Code
- the remuneration awarded to employees in
respect of each financial year
Article L. 225-37-4, 2° of the French Commercial Code
- remuneration awarded to senior executives
stipulates that, except where they concern ordinary
transactions and are entered into on an arm’s length
basis, agreements between, on the one hand, one of
the corporate officers or one of the shareholders Since Edmond de Rothschild (France) shares are not
holding over 10% of the voting rights of a company, admitted to trading on a regulated market, no public
either directly or via an intermediary, and, on the other tender or exchange offer can be made for them.
hand, another company controlled by the former as Accordingly, the provisions of Article L. 225-37-5 of
defined in Article L. 233-3 of the French Commercial the French Commercial Code do not apply to Edmond
Code, must be disclosed in the report on corporate de Rothschild (France).
governance.
No such agreement was brought to the attention of

our Company during 2019. OBSERVATIONS OF THE SUPERVISORY
BOARD ON THE REPORT OF THE
EXECUTIVE BOARD AND THE FINANCIAL
Information about delegations of STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2019
authority (Article L. 225-37-4, 3° of the
French Commercial Code
In accordance with the law, the Company’s Executive
Board has presented on a timely basis the 2019
In accordance with Article L. 225-37-4, 3° of the financial statements to us for verification and control
French Commercial Code, no delegation of authority purposes and provided the report to be presented to
or of powers to increase the Company’s share capital you at the General Meeting.
pursuant to Articles L. 225-129.1 to L. 225-129.2 of
said Commercial Code was in force at
31 December 2019.
Having examined the report, we have no additional
observations to make concerning the Company’s
management or the 2019 financial statements. The
financial statements are in line with the information
Arrangements for shareholders to
provided to us during the year.
participate at the General Meeting
We recommend that you approve these financial

The arrangements for shareholders to participate at statements at the Annual General Meeting of
general meetings are set forth in Article 20 of the Shareholders.
Articles of Association.
Disclosures required pursuant to The Supervisory Board

Article L. 225-37-5 of the French
Commercial Code

Consolidated financial statements
and notes
89 IFRS consolidated balance sheet
90 IFRS consolidated income statement
91 Statement of comprehensive income
92 IFRS cash flow statement
94 Statement of changes in equity
95 Notes to the consolidated financial

statements

Consolidated financial
IFRS consolidated balance sheet (in thousands of euros)
31/12/2019 31/12/2018
Assets
Cash, due from central banks and postal accounts 3.1 2,229,167 2,248,217
Financial assets at fair value through profit and loss 3.2 171,859 174,670
Financial assets at fair value through equity 3.3 3,719 4,098
Securities at amortised cost 3.4 10,384 10,132
Loans and receivables due from credit institutions, at amortised cost 3.5 234,936 59,135
Loans and receivables due from clients, at amortised cost 3.6 876,774 765,526
Current tax assets 6,073 238
Deferred tax assets 13,166 13,726
Accruals and other assets 3.8 158,733 182,521
Investments in associates 3.9 67,964 60,014
Property, plant and equipment 3.10 39,640 39,301
Right-of-use assets(*) 43,989 -
Intangible assets 3.11 23,783 25,134
Goodwill 3.12 74,313 82,418
Total assets 3,954,500 3,665,130
(*) At 1 January 2019, the first-time adoption of IFRS 16 led to the recognition of €53,316 thousand of right-of-use assets.
31/12/2019 31/12/2018

Financial liabilities at fair value through profit and loss 3.13 1,582,115 1,428,390
Hedging derivatives 3.14 - -
Due to credit institutions 3.15 88,276 35,011
Due to clients 3.16 1,603,964 1,585,256
Debt securities - -
Current tax liabilities 575 2,448
Deferred tax liabilities 243 -
Accruals and other liabilities(**) 3.8 248,670 197,141
Provisions 3.17 24,590 25,110
Subordinated debt 3.18 - -
Equity 406,067 391,774
Equity attributable to equity holders of the parent 395,496 379,945
. Share capital and related reserves 201,195 201,195
. Consolidated reserves 173,549 150,289
. Other comprehensive income 6,378 88
. Earnings for the period 14,375 28,373

Non-controlling interests 10,571 11,829
Total liabilities and equity 3,954,500 3,665,130
(**) At 1 January 2019, the first-time adoption of IFRS 16 led to the recognition of €53,316 thousand of lease liabilities. Those
liabilities amounted to €44,199 thousand at 31 December 2019.
IFRS consolidated income statement (in thousands of euros)
2019 2018
+ Interest and similar revenues 4.1 34,219 17,124

- Interest and similar expenses 4.2 −60,315 −39,162
+ Fee income 4.3 327,939 356,304
- Fee expense 4.3 −77,067 −84,356
+/- Net gains or losses on financial instruments at fair value through profit and loss 4.4 76,699 51,988
+/- Net gains or losses on financial assets at fair value through equity 4.5 6,918 1,014
+ Other revenues 4.6 10,605 11,751
- Other expenses 4.6 −15,366 −14,713
- General operating expenses 4.7 −237,220 −246,278
- Depreciation, amortisation and impairment of intangible assets and property, plant and
−27,699 −18,201
equipment
+/- Cost of risk 4.8 −3 −336
Operating income 38,708 35,135
+/- Share in net income of associates 3.9 −105 3,203
+/- Net gains or losses on other assets 4.9 1,211 6,286
+/- Changes in the value of goodwill −8,105 −52
Income (loss) before tax 31,709 44,572
- Income tax 4.10 −15,744 −11,292
Net income 15,965 33,280
- Net income attributable to non-controlling interests −1,591 −4,907
Net income attributable to equity holders of the parent 14,375 28,373
Earnings per share (in euro) 2.54 5.06
Diluted earnings per share (in euro) 2.54 5.06

Statement of comprehensive income (in thousands of euros)
2019 2018
Net income 15,965 33,280

Exchange difference 1,691 −525
Deferred change in value of hedging derivatives (*) - −221
Change in value of financial assets at fair value through equity (*) −462 −365
Actuarial gains or losses on defined-benefit plans (*) −92 −1,808
Total comprehensive income 1,137 −2,919
Net income and comprehensive income 17,102 30,361
Attributable to equity holders of the parent 15,511 25,455
Attributable to non-controlling interests 1,591 4,906
(*) Net of tax.

IFRS cash flow statement (in thousands of euros)
2019 2018
Cash flow from operations

Net income for the period 15,965 33,280
Net gain or loss on disposals of long-term assets −8,128 −7,300
Net additions to depreciation, amortisation and provisions 25,201 17,028
Income from associates 105 −3,203
Reclassification of net gain or loss on financial instruments at fair value through profit and loss −76,699 −51,988
Other unrealised income and expenses 771 1,534
Income tax expense (including deferred taxes) 15,744 11,292
Cash flow from operations before financing activities and tax −27,040 642
Income tax paid −22,477 −24,655
Net increase/decrease from transactions with credit institutions −175,696 −485
Net increase/decrease from transactions with clients −92,433 73,686
Net increase/decrease from transactions in other financial assets and liabilities 240,238 134,638
Net increase/decrease from transactions in other non-financial assets and liabilities 32,691 −19,428
Net cash flow from operating activities −44,717 164,398

Cash flow from investing activities
Purchases of property, plant and equipment and intangible assets −15,070 −16,270
Purchases of long-term financial assets −8,693 −1,783
Dividends received from associates - 3,048
Disposals of long-term assets 2 22,544
Net cash flow from investing activities −23,761 7,539
Cash flow from financing activities
Increase/decrease in cash from transactions with shareholders −3,245 −25,474
Net cash flow from financing activities −3,245 −25,474
Effect on cash and cash equivalents of changes in exchange rates 179 47
Net change in cash and cash equivalents −71,544 146,510
Net balance of cash and amounts due from central banks 2,248,217 2,025,603
Money-market funds qualifying as cash equivalents 14 14
Net balance of demand deposits with and loans from credit institutions 24,124 100,228
Cash and cash equivalents at the beginning of the period 2,272,355 2,125,846
Net balance of cash and amounts due from central banks 2,229,167 2,248,217
Money-market funds qualifying as cash equivalents 14 14
Net balance of demand deposits with and loans from credit institutions −28,370 24,124
Cash and cash equivalents at the end of the period 2,200,811 2,272,355
Change in net cash −71,544 146,510
At 31 December 2019, the adoption of IFRS 16 led to the recognition of a net expense of €210 thousand, breaking down as follows:
- a €436 thousand increase in interest and similar expenses,
- a €9,553 thousand decrease in general operating expenses,

- a €9,327 thousand increase in depreciation, amortisation and impairment of intangible assets and property, plant and
equipment.

Statement of changes in equity (in thousands of euros)
Appropriat
Impact of Other
31/12/2017 01/01/2018 ion of 31/12/2018
applying IFRS 9 changes
income
IAS 39 IFRS 9 IFRS 9
Attributable to equity holders of the parent

– Share capital 83,076 - 83,076 - - 83,076
– Share premiums 98,244 - 98,244 - - 98,244
– Equity instruments (undated super-subordinated notes) 19,875 - 19,875 - - 19,875
– Interest on equity instruments (undated super- −16,099 - −16,099 - −337 −16,436
subordinated notes)
– Elimination of treasury shares - - - - - -
– Other reserves (*) 110,594 53,014 163,609 5,095 −1,979 166,725
– Unrealised or deferred gains/losses on available-for-sale
53,742 −53,742 -
financial assets
– Other comprehensive income 674 674 - −586 88
– 2017 net income 24,147 - 24,147 −24,147 - -

Sub-total 373,579 −54 373,526 −19,052 −2,902 351,572
– 2018 net income - - - - 28,373 28,373
Total equity attributable to equity holders of the parent 373,579 −54 373,526 −19,052 25,471 379,945
Non-controlling interests in:
– Reserves 12,567 - 12,567 414 −6,059 6,922
– 2017 net income 414 - 414 −414 - -
– 2018 net income - - - - 4,907 4,907
Total non-controlling interests 12,981 - 12,981 - −1,152 11,829
Capital Appropriatio Other

31/12/2018 31/12/2019
increase n of income changes
Attributable to equity holders of the parent

– Share capital 83,076 - - - 83,076
– Share premiums 98,244 - - - 98,244
– Equity instruments (undated super-subordinated notes) 19,875 - - - 19,875
– Interest on equity instruments (undated super-subordinated notes) −16,436 - - −336 −16,772
– Elimination of treasury shares - - - - -
- Other reserves 166,725 - 28,373 −4,778 190,320
– Other comprehensive income 88 - - 6,290 6,378
– 2018 net income 28,373 - −28,373 -

Sub-total 379,945 - - 1,176 381,121
– 2019 net income - - - 14,375 14,375
Total equity attributable to equity holders of the parent 379,945 - - 15,551 395,496
Non-controlling interests in:
– Reserves 6,922 - 4,907 −2,849 8,980
– 2018 net income 4,907 - −4,907 - -
– 2019 net income - - - 1,591 1,591
Total non-controlling interests 11,829 - - −1,258 10,571
(*) The amount of dividends paid in 2018 was €19.052 million.

Notes to the consolidated
Note 1 – Preparation of the intangible assets and property, plant and equipment”
and “Interest and similar expenses” respectively.
consolidated financial statements
Most of the leases identified within the Group relate to
1.1. Background real estate and, to a lesser extent, IT hardware and
company cars.
In compliance with EU Regulation 1606/2002 of 19
July 2002 concerning the application of international However, the automobile fleet has been excluded from
accounting standards by entities issuing publicly the IFRS 16 scope of application because of its very
traded debt securities, and in connection with the low value.
regular issue of publicly traded debt securities,
Edmond de Rothschild (France) prepared its financial The parameters used by the Group to measure its
statements in accordance with International Financial rights of use and lease liabilities are as follows:
Reporting Standards (IFRSs) for the first time in 2007.
Edmond de Rothschild (France)’s financial statements - Lease terms were defined on a contract-by-contract
are prepared in accordance with IAS/IFRS standards basis and consist of the non-cancellable terms of each
and IFRIC interpretations applicable at 31 December lease. The Group did not recognise any periods
2019 as adopted by the European Union relating to renewal or termination options reasonably
http://ec.europa.eu/internal_market/accounting/ias/index_fr.htm. certain to be exercised or not exercised.
They were approved by the Executive Board on 3 For 3/6/9-year real-estate leases, the renewal right
March 2020. They were reviewed by the Audit that exists at the end of the third 3-year period was
Committee on 10 March 2020 and by the Supervisory not taken into account when determining the
Board on 11 March 2020. enforceable term of the leases.
- The discount rate applied to all assets is based on the

1.2. Compliance with accounting standards Group’s marginal borrowing rate.
New applicable accounting standards In the absence of a credit rating on the Group, the
marginal borrowing rate has been calculated as
IFRS 16 follows:
IFRS 16 “Leases”, adopted by the European Union on
• the average credit default swap (CDS) swap
31 October 2017, replaced IAS 17 from 1 January
rate on BBB-rated banks, i.e. banks that under
2019.
the PRIIPs (Packaged Retail Investment and
Insurance Products) regulation have a credit
The material change resulting from IFRS 16 mainly
risk measurement (CRM) score of 3, which is
concerns the lessee’s method for recognising leases.
the default for unrated institutions,
The IAS 17 distinction between operating leases and
• plus the swap rate,
finance leases no longer exists.
over the average remaining term of the leases.
Under IFRS 16, all leases will be recognised on the
lessee’s balance sheet, i.e. an asset representing the
The Group has chosen to apply the initial recognition
right to use the leased asset during the lease period
exemption for deferred tax assets and liabilities under
and a liability consisting of the obligation to make
paragraphs 15 and 24 of IAS 12 “Income taxes”.
lease payments.
As regards IFRS 16’s transitional provisions, the Group
The Group has no leases with a term of 12 months or
has chosen to adopt the simplified retrospective
less and does not lease any assets with a value of
approach and at 1 January 2019 recognised a right of
USD5,000 or less, and so it is not using those two
use and a lease liability in the same amount
capitalisation exemptions available under IFRS 16.
(representing the present value of future lease
payments to be made over the enforceable lease
Instead of recognising a lease expense, the
terms), without any restatement of comparative
amortisation of the right of use and the interest
information.
expense on the lease liability are now recorded under
“Depreciation, amortisation and impairment of

The entry into force of other mandatorily applicable Fully consolidated companies
standards since 1 January 2019 did not have any effect Companies under the sole control of Edmond de
on the financial statements for the year ended 31 Rothschild (France) are fully consolidated.
December 2019. Full consolidation involves replacing the value of
shares in the subsidiaries with each item of those
companies’ financial statements, then eliminating
New standards published but not yet applicable transactions between the parent and subsidiaries and
between subsidiaries. Non-controlling interests in the
The Group did not opt for early application of any new equity and earnings of subsidiaries are stated
standards, amendments or interpretations adopted by separately in the consolidated balance sheet and
the European Union where their application in 2019 income statement.
was only optional. The Group has control over a subsidiary where it has
power over the entity (generally by holding the
majority of voting rights, directly or indirectly), where
1.3. Use of estimates its relations with the subsidiary expose it or entitle it to
variable returns and where it has the ability to
The preparation of financial information involves the influence those returns because of the power it exerts.
use of estimates and assumptions regarding future
circumstances.
In addition to available information, making estimates Associates
Companies over which the Group exercises significant
requires an element of judgment, particularly as
influence are accounted for under the equity method.
regards the following:
Significant influence is defined as the power to
- impairment tests performed on intangible assets;
participate in the financial and operating policies of a
- impairment tests performed on investments in
subsidiary but not to control those policies. Significant
associates;
influence is often exercised by representation on the
- determining whether or not a market is active for
Board of Directors, Executive Board or Supervisory
the purposes of using a value measurement
Board, participation in strategic decisions, interchange
technique.
of managerial personnel or dependence on technical
The Group also considers that among the other
information.
accounting aspects requiring the use of judgment, the
Significant influence is presumed to exist when a
most important concern provisions, pension liabilities
company holds, directly or indirectly, at least 20% of
and share-based payments.
the voting rights in a subsidiary. Investments in
associates are initially stated at cost including
1.4. Consolidation methods attributable goodwill and subsequently adjusted to
reflect changes in the Group’s share of net assets.
The consolidated financial statements were prepared Gains and losses on transactions between the Group
on the basis of the separate financial statements of and associates are eliminated to the extent of the
Edmond de Rothschild (France) and all controlled investment, unless the transaction results in
subsidiaries and subsidiaries subject to significant permanent impairment of the asset transferred.
influence.
Special purpose entities
These are legal entities designed so that voting rights
are not the determining factor in establishing control
over the entity. That is the case where the entities
undertake solely administrative tasks and where their
relevant activities are managed through contractual
arrangements. The main criteria for assessing whether
the Group controls a special purpose entity are as
follows:
- the activities and purpose of the company;
- the way the entity was structured;
- the risks borne by the company and those
transferred and borne by the Group;
- exposure to and ability to control the entity’s
variable returns.
Groupement Immobilière Financière meets those
criteria and is therefore consolidated.
1.5. Changes in the scope of consolidation

In the second half of 2019, Edmond de Rothschild Business combinations completed after 1 January
(France) acquired a 34% stake in asset management 2010
company ERAAM.
The rules set out above have been modified by the
1.6. Consolidation principles adoption of the revised IFRS 3. The main changes are
as follows:
- Changes in interests that do not result in a loss of
Reporting date control (additional purchases or disposals that do
The consolidated financial statements were prepared
not result in a loss of control) only affect equity and
on the basis of the separate financial statements of
have no impact on goodwill.
each Group company at 31 December 2019.
- Contingent liabilities of the acquiree are only
recorded in the consolidated balance sheet if they
Elimination of inter-company transactions
represent a present obligation on the date control
All payables, receivables, commitments, revenues and
is acquired if and their market value can be reliably
expenses resulting from transactions between fully
estimated.
consolidated companies are eliminated, as are inter-
- Costs directly related to the business combination
company gains and losses on sales of assets.
constitute a separate transaction from the
Dividends received from consolidated companies are
combination itself and are recognised in profit and
eliminated from consolidated earnings.
loss.
- Any contingent consideration is included in the
Goodwill
purchase price at its market value on the
acquisition date. After the 12-month evaluation
Business combinations completed before 1 January
period following the business combination, changes
2010
in the value of any contingent consideration
classified as a financial liability are recognised in
The Group accounted for business combinations using
profit and loss.
the purchase method. The acquisition cost was
- On the date control is acquired over an entity, any
measured as the total fair value, at the date of
previously held interest in the latter is remeasured
acquisition, of the assets given, liabilities incurred or
at market value through profit and loss.
assumed and equity instruments issued in exchange
In the case of a step acquisition, goodwill is
for control of the acquiree, plus any costs directly
determined by reference to market value at the date
attributable to the business combination.
control is acquired, and not by reference to the assets
At the acquisition date, the assets, liabilities, off-
and liabilities acquired at the time of each exchange
balance sheet items and contingent liabilities of the
transaction.
acquired entities that are identifiable under IFRS 3
“Business Combinations” were measured individually
Measurement of goodwill
at fair value, whatever their purpose.
The analysis and expert assessments necessary for
The Group regularly reviews goodwill and carries out
initial measurement of these items, and any
impairment tests at least once a year, or whenever
corrections resulting from new information, had to
there is evidence of impairment. At the date of
take place within 12 months of the date of acquisition.
acquisition, goodwill is allocated to one or more cash-
generating units likely to obtain benefits from the
Upon the first consolidation of an investment, the
acquisition. Any impairment of goodwill is determined
difference between the acquisition cost of the shares
by reference to the recoverable amount of the cash-
and the share of adjusted net assets acquired was,
generating unit(s) (CGU) to which it is allocated.
after analysis, allocated between corrections to the
When the recoverable amount of the CGU, determined
values of balance sheet items and to the commitments
by experts on the basis of value in use or fair value less
of the consolidated company, and intangible assets
costs to sell, is lower than its carrying amount value,
that meet the criteria defined in IAS 38. The residual
an irreversible impairment loss is recorded in the
balance was treated as goodwill. Positive goodwill was
consolidated income statement, under the heading
reported in the consolidated balance sheet under the
“Changes in the value of goodwill”.
heading “Goodwill”. Negative goodwill was
immediately recognised in profit and loss. If the Group
Deferred taxes
increases its percentage interest in an entity it already
Deferred taxes are recognised when temporary
controls, the acquisition of further shares gives rise to
differences are identified between the carrying
recognition of additional goodwill, determined by
amounts of balance sheet assets and liabilities for
comparing the purchase price of the shares and the
reporting and tax purposes, and where those
share of net assets acquired.
differences will affect future tax payments.
Goodwill is carried in the balance sheet at cost.
Deferred taxes are determined using the liability
Goodwill on acquisitions of associates is included
method. Under this method, deferred taxes recorded
under the heading “Investments in associates”.
in previous periods are adjusted when tax rates are
changed and the resulting difference is taken to profit
and loss. Deferred tax assets are only recognised when

it is likely that the consolidated company will have
sufficient taxable income to utilise the deferred tax
asset within a given time horizon.
Translation of foreign currency financial

statements
The Group’s consolidated financial statements are
prepared in euros. The financial statements of entities
whose functional currency is not the euro are
translated into euros using the closing rate method.
Under this method, all assets and liabilities, both cash
and non-cash, are translated at the exchange rate on
the balance sheet date. Revenues and expenses are
translated at the average rate during the period.
Translation gains or losses, both on balance sheet and
income statement items, are recognised, for the
portion attributable to the Group, in shareholders’
equity under “Translation differences”, and for the
portion attributable to third parties, under “Non-
controlling interests”.

Note 2 – Accounting policies,
— After initial recognition, loans and receivables due
valuation methods and explanatory from credit institutions not originally designated as “at
notes fair value through profit and loss” are subsequently
measured at amortised cost based on the effective
interest rate. Remuneration related to securities
Translation of foreign currency transactions purchased under repurchase agreements with banks is
Monetary assets and liabilities in foreign currencies are
recorded using the amortised cost method in the same
translated into euros using official exchange rates as
way as repurchase agreements with financial clients.
published by the Banque de France at the balance
sheet date. Unrealised foreign exchange gains and
Financial assets at fair value through profit and
losses are recorded in profit and loss. Spot foreign loss
exchange transactions are measured at the official
spot rates at the end of the period. The resulting gains These instruments make up a very small proportion of
and losses are recorded in profit and loss. Forward assets held for trading, and are carried at fair value at
exchange contracts are measured at the rate for the the closing date, with changes in fair value recorded in
residual term at the balance sheet date, with the profit and loss under the heading “Net gains or losses
impact of changes in fair value taken to profit and loss. on financial instruments at fair value through profit
Non-monetary assets in foreign currencies, particularly and loss”.
investments in non-consolidated subsidiaries and This item also includes non-derivative financial assets
associates denominated in foreign currencies, are and liabilities that the Group has designated from the
recorded in the balance sheet at the euro equivalent of outset as “at fair value through profit and loss”.
their historical foreign-currency cost, using exchange The Group’s objectives in applying this option are as
rates prevailing at the date of acquisition or follows:
subscription. Unrealised foreign exchange gains and to apply fair value measurement to certain hybrid
losses related to these assets are only recognised in instruments in order to avoid separating embedded
profit and loss upon disposal or recognition of derivatives, which need distinct reporting. Structured
impairment, or when the fair value is hedged for EMTNs and BMTNs (euro medium-term notes and
foreign exchange risk. negotiable medium-term notes) issued by the Bank
belong to this category;
Financial assets and liabilities to eliminate or significantly reduce discrepancies in
Upon initial recognition, financial assets and liabilities the accounting treatment of certain financial assets
are measured at fair value including acquisition costs and liabilities. Edmond de Rothschild (France)
(except for financial instruments recognised at fair therefore measures all forward cash management
value through profit and loss). They are classified in operations at fair value through profit and loss. The
the categories described below: Bank’s cash management is based on the following
principles:
Loans and receivables 1. the arrangement of term loans and borrowings with
banks or financial clients;
— Loans made to clients in the course of commercial
2. the acquisition or issuance of negotiable debt
banking activities are included in the balance sheet
securities on the interbank market;
item “Loans and receivables due from clients at
3. where necessary, the hedging of each of these items
amortised cost”. They are initially measured at fair
using interest-rate derivatives.
value, and subsequently adjusted at the closing date
to their amortised cost based on the effective interest
When an item recognised at amortised cost is hedged
rate, which takes into consideration cash flows
by a financial asset that would be classified as an asset
resulting from all the contractual terms of the
at fair value through equity, designating that item as
instrument. Impairment losses are recorded on these
at fair value can eliminate the distortion that arises
items (see section on “Impairment of financial assets”).
from different accounting treatments for financial
This category also includes securities purchased under
assets and liabilities that share the same interest-rate
repurchase agreements.
risk, and experience changes in fair value that tend to
— The value of securities purchased under repurchase
be mutually offsetting.
agreements for cash is recognised as the relevant
Similarly, when an interbank loan not originally
amount of cash received. Remuneration on these
recognised as a hedging relationship undergoes the
agreements is recorded in profit and loss using the
same changes in fair value (due to exposure to
amortised cost method.
interest-rate risk) but in the opposite direction,
designating that loan as at fair value can reduce the

distortion that would have arisen from recording the Impairment of financial assets
loan at amortised cost and the derivative at fair value
through profit and loss. Financial assets measured at amortised
cost and debt instruments at fair value
Other financial assets at fair value through profit or through equity with recycling
loss also include:
- debt instruments whose contractual cash flows do The credit risk impairment model applies to loans and
not constitute repayments of principal and payments debt instruments classified at amortised cost or at fair
of interest on the principal that remains due (non-SPPI value through equity. These financial assets
instruments), systematically undergo impairment testing when
- equity instruments that the Group has not opted to negotiated (i.e. at the time of acquisition or granting
classify at fair value through equity. of the loan).
The provisioning model is based on monitoring the
Finally, this category of financial assets and liabilities relative deterioration in credit quality, corresponding
includes the positive or negative fair values (without to movements in the counterparty’s credit risk,
offsetting) of derivatives that have not been without waiting for an objective incurred loss event.
designated as hedging instruments. Stage 1: healthy assets that have not significantly
deteriorated since inception
Financial assets at fair value through equity Expected credit losses in the next 12 months are
calculated on assets that have not undergone any
significant deterioration in credit quality since
Debt instruments
inception.
The “Financial assets at fair value through equity” Stage 2: healthy assets that have significantly
category includes debt instruments (loans and deteriorated since inception
advances, bonds and other similar securities) with a Within the Group, loans are not scored but monitored
business model involving the collection of contractual according to a Basel approach, depending on the type
cash flows – representing basic SPPI (“solely payments of eligible security covering the loan granted.
of principal and interest”) loans – and sales of those Three indicators are used to gauge a deterioration in
instruments. credit quality: overdue payments, limit violations or
Changes in value, excluding accrued or earned unauthorised debits, and margin calls.
income, are recognised in a specific equity line item For loans with eligible financial security, the Group has
entitled “Gains and losses recognised directly in not adopted the rebuttable presumption that loans on
equity”, and are reclassified to profit and loss when which payments are more than 30 days past due have
the instruments are sold. undergone a significant deterioration in credit quality
Expected losses relating to credit risk are calculated (no defaults have occurred in recent years), and the
on these financial assets. “Stage 2” classification takes place after 60 days in the
event of overdue payments or unauthorised debits.
Equity instruments
The Group has opted to classify part of its equity

securities that it needs to conduct certain activities at
fair value through equity.
That classification, which is irrevocable, must be
carried out for each security.
Changes in the fair value of these instruments are
recognised in “Gains and losses recognised directly in
equity”, and cannot be recycled to profit and loss.
Assets in this category do not undergo impairment.
Only dividends are recognised in profit and loss.
Reclassification of financial assets
Reclassifications of financial assets under IFRS 9 are

only required where there is a change in the business
model associated with them.

Mortgages are subject to the same rules. IFRS 9 requires “forward-looking” data to be included
Unsecured loans or loans without eligible security are in the calculation of expected losses relating to credit
classified as “Stage 2” after 30 days in the event of risk.
overdue payments or unauthorised debits. The aim is to be able to take into account as early as
The impairment loss corresponds to credit losses possible forward-looking information and
expected over the life (to maturity) of the financial macroeconomic indicators that may affect the risk
assets. profile of counterparties.
Stage 3: Individually impaired assets The Group takes into account this forward-looking
Assets are classified as doubtful where one or more information as part of the borrowing amounts used to
payments are at least 90 days past due. determine LGD.
Credit risk is measured as expected credit losses to
maturity. Derecognition of financial assets and liabilities
The amount of the impairment loss is included in “Cost
of risk” in the income statement, and the value of the Derecognition of financial assets
financial asset is reduced through the recognition of
impairment. Increases and decreases in impairment The derecognition (total or partial) of a financial asset
provisions due to changes in the probability of on the balance sheet takes place when contractual
recovery are recorded in “Cost of risk”, while the rights to the instrument’s cash flows expire or when
reversal over time of the discounting effects is treated those flows and substantially all of the instrument’s
as financial income from impaired receivables and risks and benefits are transferred to a third party.
included in “Interest and similar revenues” in profit and
loss. Derecognition of financial liabilities
Measurement of expected credit losses The Group removes a financial liability from its balance
sheet when the obligation specified in the contract is
Expected credit losses are defined as the weighted
extinguished, discharged or cancelled or expires.
likely expected value of the credit loss (principal and
interest) discounted to present value. The method for Derivatives and hedges
measuring these losses is based on the following All derivatives, except derivatives designated for
components. accounting purposes as cash flow hedges (see below),
are stated at fair value with changes in fair value
- Probability of default (PD) recognised in profit and loss. Derivatives are recorded
Probability of default is an estimate of the likelihood in the balance sheet at the trade date. They fall into
that a default will occur. two categories:
Most loans granted to the Group’s clients have a 1-
year maturity and in the absence of any defaults in Trading derivative financial instruments
recent years, the Group has decided to apply: Derivatives are automatically classified as held for
- for loans classified in “Stage 1”, the average first- trading unless they qualify for accounting purposes as
quartile 1-year PD shown by the retail mortgage hedging instruments. They are carried in the balance
books of major French banks, sheet under “Financial assets at fair value through
- a flat-rate 20% PD for loans on which credit risk has profit and loss” where their fair value is positive, and
significantly deteriorated. under “Financial liabilities at fair value through profit
and loss” where their fair value is negative. Changes in
- Loss given default (LGD) the fair value of derivatives are recorded in profit and
LGD measures the loss that would arise if a loss under “Net gains or losses on financial assets at
counterparty defaulted. The figure takes into account fair value through profit and loss”.
the amounts borrowed and the market values of the Income and expenses recorded at the time of interim
assets and securities covering the loans granted by the payments of interest differentials or on settlement of
Bank (with discounts based on the Group’s risk the final payment under the derivative contract are
policy). recorded in profit and loss under “Interest and similar
- Exposure at default (EAD) revenues” or “Interest and similar expenses”. Gains and
EAD is the amount owed by the counterparty at the losses resulting from derivatives being unwound
time it defaults on a given commitment. before their contractual expiry date are recorded in
profit and loss under “Net gains or losses on financial
- Forward-looking approach assets at fair value through profit and loss”.

Hedging derivative financial instruments between 4 and 10 years, and 25 years for real-estate
To classify a financial instrument as a hedging assets.
derivative, the Group must document the hedging Property, plant and equipment is subject to
relationship from its inception. impairment tests if events or new circumstances
The documentation must identify the asset, liability or indicate a risk that the carrying amount may be
future transaction hedged, the nature of the risk being irrecoverable.
hedged, the type of derivative instrument used, and Gains or losses on sales of operating assets are
the valuation method to be used to assess the recorded under “Net gains or losses on other assets”.
effectiveness of the hedge. The Group’s property, plant and equipment does not
The designated hedging derivative must be highly include any investment property.
effective in offsetting changes in the fair value or cash
flows resulting from the hedged risk; that Right-of-use assets
effectiveness is assessed at the inception of the On the date a leased asset is made available to the
hedge, then on an ongoing basis throughout its lessee, a right-of-use asset equal to the initial value of
duration. Hedging derivatives are reported in the the lease liability is recognised on the balance sheet.
balance sheet under “Hedging derivatives”. That asset is then amortised on a straight-line basis
Depending on the nature of the hedged risk, the over the term of the lease.
Group must designate the hedging derivative as a fair-
value hedge, a cashflow hedge or a hedge of currency Financial liabilities at amortised cost
risk related to a net investment in a foreign operation. Debt instruments issued by the Group that are not
classified as financial liabilities at fair value through
Non-current assets profit and loss are initially measured at cost, which
Operating non-current assets are carried in the corresponds to the fair value of the amounts
balance sheet at cost. borrowed, net of transaction costs.
Property, plant and equipment and intangible assets At the balance sheet date, those liabilities are
qualifying for depreciation or amortisation are measured at amortised cost using the effective
depreciated or amortised over their period of use interest rate method. Accrued interest on those
within the company. liabilities is recorded under related payables, with a
balancing entry in profit and loss.
Intangible assets
Intangible assets primarily comprise purchased Due to credit institutions and amounts owed to
software and contract portfolios: clients
- Intangible assets with an unlimited useful life are Amounts due to credit institutions and clients are
subject to annual impairment tests from the end of broken down according to their initial term or the
the second six-month period. These tests may be nature of the amounts due: demand deposits and term
carried out at any time during the year, provided deposits for credit institutions; special savings
the date remains unchanged from one year to the accounts and other deposits for clients. Liabilities
next. For intangible assets first recognised during related to securities sold under demand or term
the current period, an impairment test is carried repurchase agreements with credit institutions or
out before the end of the year. clients are included in both these categories.
- Intangible assets with a limited useful life are They are recorded at the price at which the securities
carried at acquisition cost less cumulative were sold. Securities sold under repurchase
amortisation and impairment. They are amortised agreements remain in their original asset category in
over their useful life. The useful life is the shorter of the balance sheet and are measured according to the
the useful life as defined by law and the expected specific rules for the relevant portfolio; income on
economic life of the asset. Purchased software is those securities is also recognised as though they
amortised over a period of between one and three were still part of the portfolio.
years.
- Intangible assets are subject to impairment tests if Debt securities
events or new circumstances indicate a risk that Debt securities mainly comprise “bons de caisse”
the carrying amount may be irrecoverable. (interest-bearing notes), interbank market securities,
negotiable debt instruments and bonds, but exclude
Property, plant and equipment subordinated notes, which are reported under
Equipment, furniture, fixtures and fittings and real- “Subordinated debt”. Accrued interest payable on
estate assets are stated at cost, less any depreciation. these securities is recorded under related payables,
Depreciation is generally applied on a straight-line with a balancing entry in profit and loss.
basis over the asset’s useful life, which is generally

Income tax
Provisions Edmond de Rothschild (France), some of its
With the exception of provisions for credit risks or subsidiaries and Edmond de Rothschild SA (its owner)
employee benefits, provisions represent liabilities of have opted to form a tax consolidation group. These
uncertain timing and amount. Provisions are only entities have agreed that the advantage or
established when the Group has a legal or constructive disadvantage arising from the tax consolidation
obligation towards a third party as a result of past (difference between the consolidated tax charge and
events, and it is probable or certain that the obligation the total of the tax charges of the companies
will cause an outflow of resources to the benefit of calculated independently) is recognised immediately
that third party without receiving any consideration of in the parent company’s income statement.
at least equivalent value. Income tax for the year includes current and deferred
The amount of the expected outflow of resources is taxes. Income tax is recorded in profit and loss, unless
discounted to determine the amount of the provision it relates to an item directly recorded in equity, in
where the effect of such discounting is material. which case it is recorded in equity.
Current taxes are the forecast taxes payable on
Increases and decreases in these provisions are taxable income for the period, calculated at the rates
recorded in profit and loss under items corresponding in force at the balance sheet date, and any adjustment
to the nature of the relevant future expenditure. of taxes due in respect of previous years. Current tax
assets and liabilities are offset when Edmond de
Treasury shares Rothschild (France) intends to pay the net amount and
Treasury shares are shares in the parent company is legally authorised to do so.
Edmond de Rothschild (France) and its fully Deferred taxes are recognised based on timing
consolidated subsidiaries. differences between the carrying amount and tax base
Treasury shares held by the Group for any purpose are of balance sheet assets and liabilities. As a rule, all
deducted from consolidated shareholders’ equity, and taxable timing differences lead to recognition of
related gains or losses are eliminated from deferred tax liabilities, whereas deferred tax assets are
consolidated profit and loss. recognised where the probability exists of sufficient
future taxable profit to utilise the deductible timing
differences. Deferred tax assets and liabilities are
offset when the entity is legally authorised to do so,
provided they relate to the same tax consolidation
group and are governed by the same tax authorities.
Deferred taxes are not discounted to present value.
Deferred taxes related to actuarial gains and losses on
defined-benefit plans are recorded directly in equity.
In France, the standard corporate income tax rate is
28% for the portion of income up to €0.5 million, and
31% for the portion above that amount. Additionally,
there is the general social security contribution on
earnings of 3.3% (after an allowance of €0.76 million)
introduced in 2000. The additional 3% tax on
distributions made by companies, regardless of the
beneficiary, introduced by France’s second mini-
budget for 2012, has been found to be
unconstitutional. Long-term capital gains on
investments in subsidiaries and associates are exempt,
subject to fees and charges equal to 12% of the gross
amount of the capital gains being taxed at the
ordinary rate. Moreover, under arrangements for
parent companies and subsidiaries in which the parent
owns at least 5%, net income from investments is tax-
exempt, subject to 1% of fees and charges in tax
consolidation groups being taxed at the ordinary rate.
For companies that have not opted for tax
consolidation, the proportion of fees and charges is
5%.

Instruments traded on active markets
For the 2019 financial year, the tax rate used to Where a financial instrument is traded on an active
determine the deferred taxes of French companies market and quoted prices are available for that
was 32.02% (corresponding to the corporate income instrument, the fair value of the financial instrument is
tax rate applicable in 2020) for income taxed at the represented by its market price.
ordinary rate. For income taxed at the reduced rate,
the rates used were 4.13% and 15.50%. Instruments not traded on active markets
If the market for a financial instrument is not active, its
Methods for determining the fair value of financial fair value is determined using observable market data
instruments and valuation techniques.
Depending on the financial instrument, those
techniques use data from recent transactions and
Fair value is the amount for which an asset could be discounted future cash flow models based on rates
exchanged or a liability settled between well informed, applicable at the balance sheet date.
consenting parties in an arm’s-length transaction. The
Group distinguishes three categories of financial Structured liabilities and index-linked derivatives
instruments depending on the consequences of their In determining the fair value of structured liabilities
characteristics regarding the method of measuring and the indexed component of index-linked
their value, and it uses that classification for disclosing derivatives, not all valuation parameters are
certain information in the notes to the financial observable. Therefore, the fair value of the financial
statements: instrument at the time of the transaction is deemed to
Level 1 category: financial instruments that are quoted be the transaction price, and the commercial margin is
on an active market; recorded in profit and loss over the life of the product.
Level 2 category: financial instruments whose value is While structured liabilities are outstanding, since they
measured by reference to observable parameters; are not quoted on an active market, the valuation
Level 3 category: instruments whose value is measured parameters agreed with the counterparties at the
by reference to parameters that are wholly or partly instruments’ inception are not modified. For
non-observable; a non-observable parameter is redemptions of negotiable debt securities issued, the
defined as a parameter whose value is measured by fair value of the redeemed securities is the transaction
reliance on assumptions or correlations based neither price, and the portion of the commercial margin not
on trading prices observable on the markets for the yet recognised is taken to profit and loss.
given instrument at the valuation date, nor on
observable market data available at that date. Cash receivables and payables
For fixed-rate liabilities, which are generally due to
A financial instrument is regarded as quoted on an mature within one year, where there is no active
active market if prices are readily and regularly market, fair value is deemed to be the present value of
available from a stock exchange, broker, dealer, future cash flows discounted at the market rate at the
pricing service or regulatory agency and if those balance sheet date. Market rates are determined based
prices represent actual transactions regularly on standard internal valuation models using
occurring in the market under arm’s-length conditions. certificate-of-deposit yield curves.
Similarly, for purchased fixed-rate debt securities, fair
value is determined by discounting expected future
cash flows at market rates.
Loans and other financing to clients

Edmond de Rothschild (France) considers that,
because of the multiyear frequency of adjustments,
the fair value of variable-rate loans can be considered
equal to their carrying amount.
For loans with a variable rate that is adjusted once a
year and fixed-rate loans, fair value is determined by
discounting recoverable future cash flows relating to
principal and interest over the loans’ remaining life, at
the interest rate applicable to new lending during the
year for loans of the same category and with similar
maturities.

depending on the actual economic impact on the
Interest rate derivatives company.
The fair value of interest-rate derivatives and of the In defined-contribution plans, liabilities are covered
interest-rate component of index-linked derivatives is by contributions, which are recognised as expenses as
determined on the basis of internal valuation models and when they are paid to the independent pension
incorporating observable market data. Thus the fair bodies that manage subsequent payment of the
value of interest-rate swaps is calculated by pensions.
discounting future interest cash flows at rates derived The company’s obligation is limited to payment of a
from zero-coupon swap curves. contribution, with no associated commitment
concerning the amount of the benefits paid out. The
Forward foreign-exchange contracts contributions paid are included in the expenses of the
Forward foreign-exchange contracts are treated as period.
financial derivatives and carried in the balance sheet at In defined-benefit plans, the actuarial risk and
fair value, with changes in fair value taken to profit and investment risk are borne by the company. They cover
loss. The fair value of a forward foreign-exchange several types of commitment, principally “additional
contract is determined by the forward rate for the supplementary” pension plans and termination
contract’s remaining life at the balance sheet date. benefits for retiring employees. A provision is
recorded in liabilities to cover the total value of those
Cost of risk pension commitments. They are valued annually by an
In terms of credit risk, the cost of risk includes independent actuary at the balance-sheet date.
additions to and reversals of impairment of fixed- In accordance with IAS 19, the Group uses the
income securities and loans and receivables due from projected unit credit method to calculate its
clients and credit institutions, additions to and employee-benefit commitments. This retrospective
reversals of provisions relating to financing and method uses projections regarding career-end salaries
guarantee commitments given, losses on receivables and prorated final-benefit entitlements based on
written off and amounts recovered on receivables length of service, taking into account actuarial
formerly written off. assumptions regarding the employee’s probable future
period of service with the company, future
Fees and commissions remuneration levels, life expectancy and personnel
The Group records fee income in profit and loss turnover.
according to the nature of the services concerned. Actuarial gains and losses, determined for each plan,
Fees received for nonrecurring services are include the effect of differences between actuarial
immediately taken to profit and loss. Fees for ongoing assumptions previously adopted and actual outcomes,
services are recorded progressively in profit and loss and the effect of changes in actuarial assumptions.
over the duration of the service provided. Fees that
are an integral part of the effective return on a The Group applies IAS 19 revised regarding the
financial instrument are treated as an adjustment to recognition of actuarial gains and losses on defined-
the effective return on the financial instrument. benefit pension plans. All such gains and losses are
recorded under other comprehensive income in the
Employee-benefit commitments period in which they are recognised. When the plan is
The Group recognises four categories of benefit as funded by assets, those assets are measured at fair
defined by IAS 19: value at the closing date and deducted from the value
of the commitments recorded. The annual amount
1. Short-term benefits, for which payments are included in personnel expenses in respect of defined-
immediately expensed: remuneration, profit-sharing, benefit plans includes the following:
employee savings and paid leave. - the additional benefits earned by each employee
(current service cost);
2. Post-employment benefits, measured using an - the financial cost resulting from the unwinding of
actuarial method, with provisions set aside for discounts;
defined-benefit plans (except French compulsory - interest income generated by plan assets (net
defined-contribution plans, which are directly interest on the net liability or asset);
expensed): pension benefits, supplementary pension - past service cost;
plans and termination benefits for retiring employees. - the effect of plan curtailments or settlements.
Post-employment benefits are classified as either The Group recognises past service cost in expenses on
defined-contribution plans or defined-benefit plans, a straight-line basis over the average period remaining
until the benefit entitlements are vested. Past service

cost refers to the increase in the present value of the Cash flow statement
obligation arising from employee service in previous Cash and cash equivalents consist of the net balances
periods, resulting from the introduction of a new plan of cash accounts, amounts due from central banks and
or from changes occurring during the period. postal accounts, and the net balances of demand
deposits with and loans from credit institutions.
3. Other long-term benefits, measured in the same Changes in cash generated by operating activities
way as postemployment benefits and fully reflect cash flows generated by the Group’s business,
provisioned: these include long-service awards, including cash flows related to held-to-maturity
Compte Epargne Temps working-time savings financial assets and negotiable debt securities.
accounts and deferred remuneration. Changes in cash generated by investing activities
result from cash flows related to acquisitions and
4. Termination benefits, redundancy payments and disposals of consolidated subsidiaries and associates
voluntary redundancy payments. These benefits are and acquisitions and disposals of real property.
fully covered by provisions once the relevant Changes in cash related to financing activities
agreement has been signed. comprise cash inflows and outflows from operations
with shareholders, cash flows related to subordinated
Share-based payments debt, bonds, and debt securities other than negotiable
IFRS 2 “Share-based payment” requires transactions debt instruments.
settled in shares and similar instruments to be
reported in the income statement and the balance Earnings per share
sheet. Earnings per share are calculated by dividing net
The Group’s share-based payment plans fall within the income attributable to ordinary shareholders by the
scope of IFRS 2 as they are settled through the weighted average number of ordinary shares in issue
allotment of equity instruments. during the period, excluding treasury shares. Diluted
IFRS 2 applies to plans granted after 7 November 2002 earnings per share reflect the impact of potential
(the date of publication of the exposure draft) for dilution on earnings and the number of shares
which rights had not yet vested at the date of resulting from the exercise of options under the
transition to IFRSs (1 January 2006 for the Edmond de various plans (bonus share and stock option plans)
Rothschild (France) group). granted by Edmond de Rothschild (France) and its
Edmond de Rothschild (France) and its subsidiaries subsidiaries, in accordance with IAS 33. No account is
have awarded various stock option and bonus share taken of plans that have no dilutive impact.
plans. Stock options and bonus shares are expensed
and included in “Personnel expenses”, with a balancing
entry in shareholders’ equity as and when rights vest.
The expense is measured on the basis of the overall
value of the plan at the date it is awarded by the
governing bodies. In exceptional cases where the
employee receives the benefits immediately, the
expense is recognised at the grant date. If no market
exists for the instruments concerned, mathematical
valuation models are used. Options awarded are
measured at fair value on their grant date, applying
the Black-Scholes model. This measurement is
performed by the Group. The total plan expense is
determined by multiplying the unit value of the option
by the estimated number of options vested at the end
of the vesting period, allowing for the probability of
the beneficiaries remaining with the Company at that
time. At each balance-sheet date, the number of
options expected to be exercised is revised to adjust
the plan’s initially determined overall cost, and the
expense recognised since the beginning of the plan is
adjusted accordingly. Amounts received when options
are exercised are credited to “Share capital” (at their
nominal value) and “Share premiums”.

Note 3 – Analysis of balance sheet items
In thousands of euros 31/12/2019 31/12/2018
3.1. Cash, due from central banks and postal accounts

Cash 275 427
Central banks 2,228,892 2,247,790
Postal accounts - -
Sub-total 2,229,167 2,248,217
Related receivables - -
Total 2,229,167 2,248,217
3.2. Financial assets at fair value through profit or loss

Interest rate instruments – futures 587 70
Foreign exchange instruments – futures 24 5,288
Equity and index-linked instruments – futures 11,990 4,500
Receivables related to trading derivatives 131 103
Sub-total - Derivatives 12,732 9,961
Equities and other variable-income securities - 28
Sub-total - Other financial instruments held for trading - 28
Sub-total - Trading securities 12,732 9,989
Fair value of loans and related receivables - -
Subtotal - loans and receivables designated as at fair value through profit and loss - -
Treasury notes and similar securities 2,140 2,220
Treasury notes and similar securities - related receivables 21 20
Sub-total - Financial assets designated as at fair value 2,161 2,240
Investments in subsidiaries and associates 11 11
Other variable-income securities 13,107 13,784
Sub-total 13,118 13,795
Debt instruments and similar 143,848 148,646
Sub-total - Non-SPPI debt instruments 143,848 148,646
Sub-total - Other financial assets at fair value through profit and loss 156,966 162,441
Total 171,859 174,670
The total notional amount of trading derivatives was Group’s business on the financial instruments markets,
€5.436 million at 31 December 2019 as opposed to without reflecting the market risks related to those
€5.736 million at 31 December 2018. The notional instruments.
value of derivatives indicates only the volume of the
3.3. Financial assets at fair value through equity

Treasury notes and similar securities - 1
Bonds and other fixed-income securities - 3
Sub-total - Debt instruments at fair value through equity with recycling - 4
Investments in subsidiaries and associates 3,719 4,094
Equities and other variable-income securities - -
Sub-total - Equity instruments at fair value through equity without recycling 3,719 4,094
Total 3,719 4,098

3.4. Securities at amortised cost
Treasury notes and similar securities - -

Bonds and other fixed-income securities 10,384 10,132
Total 10,384 10,132
3.5. Loans and receivables due from credit institutions, at amortised cost
Due from credit institutions
- Demand deposits 59,914 59,135
– Time deposits 175,021 -
Sub-total 234,935 59,135
Related receivables 1 -
Total gross value 234,936 59,135
Impairment - -
Total net value 234,936 59,135
3.6. Loans and receivables due from clients, at amortised cost

Overdrafts 652,989 562,943
Other loans and financing
- Loans 223,851 202,753
- Securities received under repurchase agreements - -
- Trade notes - -
- Of which related receivables 748 394
Impairment −66 −170
Total net value 876,774 765,526
Fair value of loans and receivables due from clients 877,081 765,833
Impairment of loans and receivables due from clients at amortised

cost
In thousands of euros 31/12/2018 Additions Reversals Transfers 31/12/2019
Impairment of healthy assets (Stage 1) −29 −22 15 18 −18
Impairment of healthy assets that have deteriorated (Stage 2) −28 −12 28 −1 −13
Impairment of doubtful assets (Stage 3) −113 −9 104 −17 −35
Total −170 −43 147 - −66

3.7. Pledged assets
A-Assets
31/12/2019
Fair value
Carrying amount Carrying amount
Fair value of of non-
In thousands of euros of pledged of non-pledged
pledged assets pledged
assets assets
assets
Assets of the reporting entity 23,909 3,930,591
Equity instruments 160,685 160,685
Debt securities 12,545 12,545
Other assets 23,909 3,757,361
B-Guarantees received
31/12/2019
Carrying amount of Fair value of pledged

pledged assets assets
Guarantees received by the entity concerned - -

Equity instruments
Debt securities - -
Other guarantees received
Own debt securities in issue, other than own covered bonds or asset-backed securities
C-Pledged assets/guarantees received and related liabilities

31/12/2019
Assets, guarantees
received and own debt
Related liabilities,
securities in issue, other
In thousands of euros contingent liabilities
than covered bonds or
or loaned securities
securities backed by
pledged assets
Carrying amount of selected financial liabilities - -
Government bonds held by Financière Boréale make Boréale are sold by Edmond de Rothschild (France) to
up most of the Edmond de Rothschild (France) the funds as part of repo transactions.
group’s pledged assets, via repo transactions.
83% of Row 120 “Other assets”, column 060 comprises
Repo transactions are involved in the management of the Group’s assets held with the Banque de France
mutual funds for which the Bank is custodian and and client loans. Intangible assets make up 3% of that
Edmond de Rothschild Asset Management (France) is item, and accruals and other assets 4%.
the asset manager: securities held by Financière

Assets Liabilities Assets Liabilities
3.8. Accruals and other assets and liabilities
Items under collection 80 - 66 -
Guarantee deposits paid (*) 48,378 - 36,251 -
Prepaid expenses 8,069 - 6,892 -
Accrued income 74,507 - 109,414 -
Prepaid income - 227 - 158
Accrued expenses - 84,158 - 91,472
Other miscellaneous assets and liabilities (**) 27,699 164,285 29,898 105,511
Total 158,733 248,670 182,521 197,141
(*) of which €3,550 thousand related to collateral at 31 December 2019 versus €11,620 thousand of guarantee deposits paid at 31 December 2018.
(**) of which €13,054 thousand related to collateral at 31 December 2019 versus €10,590 thousand of other liabilities at 31 December 2018.

3.9. Investments in associates
Edmond de Rothschild (Monaco) 54,080 45,320
Zhonghai Fund Management Co. LTD. 12,436 14,694
ERAAM 1,448 -
Investments in associates 67,964 60,014
Edmond de Rothschild (Monaco)
In thousands of euros 31/12/2019
Current assets 2,490,426

Non-current assets 37,932
Current liabilities 2,298,710
Non-current liabilities 229,648
Net banking income 70,010
Share of net income 7,571

Acquisitions/tr Disposals/tran Other
ansfers in sfers out changes
3.10. Property, plant and equipment

Gross value
Land and buildings 57,015 - - 2,651 59,666
Computer hardware 29,532 1,108 - −7 30,633
Fixtures, fittings and other property, plant and equipment 44,851 694 −5 38 45,578
Property, plant and equipment in progress - - - - -

Sub-total 131,398 1,802 −5 2,682 135,877
Depreciation and impairment
Buildings −24,045 −1,038 - −392 −25,475
Computer hardware −26,211 −1,744 - 5 −27,950
Fixtures, fittings and other property, plant and equipment −41,841 −969 4 −6 −42,812
Sub-total −92,097 −3,751 4 −393 −96,237

Total 39,301 −1,949 −1 2,289 39,640
Acquisitions/tr Disposals/tran Other

ansfers in sfers out changes
3.11. Intangible assets

Gross value
Contract portfolio and other contractual rights 12,510 - - - 12,510
Other intangible assets 160,712 13,268 - - 173,980
Intangible assets in progress - - - - -
Sub-total 173,222 13,268 - - 186,490
Amortisation and impairment
Intangible assets −148,088 −13,808 - −811 −162,707
Sub-total −148,088 −13,808 - −811 −162,707
Total 25,134 −540 - −811 23,783
3.12. Goodwill
Net carrying amount at the beginning of the period 82,418 82,470
Acquisitions and other increases - -
Disposals and other decreases - -
Impairment −8,105 −52
Net carrying amount at the end of the period 74,313 82,418
Net carrying amount
Edmond de Rothschild Asset Management (France) 39,891 39,891

Cleaveland 23,800 31,905
Edmond de Rothschild Assurances et Conseils (France) 5,753 5,753
Edmond de Rothschild Corporate Finance, Paris 4,481 4,481
Edmond de Rothschild Europportunities Management II S.à r.l. - -
CFSH Luxembourg S.à.r.l. 371 371
Other 17 17
Total 74,313 82,418

Goodwill items are tested individually for impairment.
This test is performed at the same time every year or
when an indication of impairment arises. The test
consists of checking that the recoverable amount of
an investment remains higher than its carrying
amount, the recoverable amount being the higher of
fair value less costs to sell and value in use.
As regards value in use, the discounted cash flow
figures used are based on activity assumptions
validated by management and extrapolated over a
period of several years, and then indefinitely on the
basis of a long-term growth rate to calculate the
terminal value.
The rate used to discount future cash flows is
determined with reference to market data. The growth
rate used to calculate the terminal value is based on
forecasts regarding economic growth and sustainable
long-term inflation.
Sensitivity tests are also performed to measure the
impact on value in use of changes to the discount rate
and the long-term growth rate.
The approach involving fair value less costs to sell
consists of determining, on the basis of the best
available information, the amount (less costs to sell)
that could be obtained from selling the asset in an
arm’s length transaction between well informed,
consenting parties.

3.13 Financial liabilities at fair value through profit and loss

Interest rate instruments – futures 722 564
Interest rate instruments – options - -
Foreign exchange instruments – futures 8,112 1
Foreign exchange instruments – options - -
Equity and index-linked instruments – futures 4,383 15,041
Equity and index-linked instruments – options - -
Sub-total 13,217 15,606
Payables related to trading derivatives −804 −721
Sub-total – trading securities 12,413 14,885
Due to credit institutions 1,092,588 937,161
Due to clients 23,369 16,277
Sub-total 1,115,957 953,438
Related payables 4,710 4,185
Sub-total - payables designated as at fair value through profit and loss 1,120,667 957,623
Negotiable debt instruments 447,715 455,850
Sub-total 447,715 455,850
Related payables 1,320 32
Sub-total - debt securities at fair value through profit and loss 449,035 455,882
Sub-total - financial liabilities designated as at fair value through profit and loss 1,569,702 1,413,505
Total financial liabilities at fair value through profit and loss 1,582,115 1,428,390
31/12/2019
Difference
Amount between fair
In thousands of euros Fair value repayable at value and
maturity amount
repayable at
Financial liabilities designated as at fair value through profit and loss 1,569,702 1,576,924 −7,222
31/12/2018
Difference
Amount between fair
In thousands of euros Fair value repayable at value and
maturity amount
repayable at
Financial liabilities designated as at fair value through profit and loss 1,413,505 1,416,883 −3,378

31/12/2019 31/12/2018
Negative Positive market Negative market Positive market

market value value value value
3.14. Hedging derivatives

Hedging the value of non-derivative financial instruments - - - -
- Foreign exchange derivatives - - - -
- Interest-rate derivatives - - - -
Hedging future gains/losses from non-derivative financial - - - -
- Foreign exchange derivatives - - - -
- Interest-rate derivatives - - - -
Hedging derivatives - - - -
3.15 Due to credit institutions

- Demand deposits 88,276 35,011
– Time deposits - -
Sub-total 88,276 35,011
Related payables - -
Total due to credit institutions 88,276 35,011
31/12/2019 31/12/2018
In thousands of euros Demand Time Total Demand Time Total

deposits deposits deposits deposits
3.16. Due to clients
Special savings accounts
- Special savings accounts - 111,164 111,164 - 88,690 88,690
- Related payables - - - - - -
Sub-total - 111,164 111,164 - 88,690 88,690
Other payables
- Demand deposits 1,408,489 - 1,408,489 1,347,230 - 1,347,230
- Time deposits - 21,306 21,306 - 36,322 36,322
- Securities delivered under repurchase - - - - - -
t
- Other miscellaneous payables - 63,000 63,000 - 113,000 113,000
- Related payables - 5 5 1 13 14
Sub-total 1,408,489 84,311 1,492,800 1,347,231 149,335 1,496,566
Total 1,408,489 195,475 1,603,964 1,347,231 238,025 1,585,256
Fair value of amounts due to clients 1,645,050 1,585,607

Post-
Loan and
Legal and tax employment Losses on Other Total carrying
In thousands of euros guarantee
risks benefit contracts provisions amount
commitments
obligations
3.17 Provisions
Balance at 31/12/2018 - 11,237 - - 13,873 25,110
Additions - 775 - - 5,786 6,561
Amounts used - - - - −5,673 −5,673
Unused amounts reversed to profit and loss - - - - −1,533 −1,533
Other movements - 125 - - - 125

Balance at 31/12/2019 - 12,137 - - 12,453 24,590
Other provisions include provisions relating to the

“additional supplementary” pension plan (detailed in
Note 6.1.A.) and to the AIMF directive at Edmond de
Rothschild Asset Management (France).
3.18. Equity instruments: undated super-subordinated notes
In June 2007, the Bank issued €50 million of undated capital adequacy ratios or a deterioration in the Bank’s
super-subordinated notes. After discussions with one financial position;
of the noteholders, the Bank made an offer to - reduction of accrued interest due and payable and
repurchase part of the notes with a nominal amount of then of the nominal value of the notes if the Bank has
€29 million, at a discount of 7.5%. After obtaining the not taken action to remedy the capital situation within
authorisation of the Autorité de Contrôle Prudentiel on a specific period.
12 July 2013, €29 million of notes were repurchased
and cancelled in August 2013. Given the discretionary nature of the decision on the
In the event of the issuer’s liquidation, holders of these payment of interest on the super-subordinated notes,
notes will be paid only after other creditors but before which is related to the payment of dividends, these
holders of participating loans or participating notes have been classified as equity instruments and
securities. related reserves.
The undated super-subordinated notes carry financial
covenants: The main financial characteristics of these notes are as
- non-payment of interest in the event of insufficient follows:
capital related to non-compliance with prudential
Optional early redemption date Rate after early Interest step-up from the optional early
Issue date Rate until early redemption
(call option) redemption redemption date
June 2007 June 2017 then quarterly 6.36% (1) 3-month Euribor + 2.65% + 100 basis points
(1) Rate fixed by reference to the 10-year swap rate in euros at 4 June 2007: 4.71% + 1.65.
3.19. Netting of financial assets and liabilities

At 31 December 2019 Financial
Amounts netted Net amounts Impact of netting
Gross amounts of instruments
on the balance stated on the and similar Net amounts
financial assets received as
In thousands of euros sheet balance sheet agreements
collateral
Financial assets at fair value through profit and loss

-Trading securities 11,906 826 12,732 - −13,054 −322
-Financial assets designated as at fair value 2,161 - 2,161 - - 2,161
-Other financial assets at fair value through profit and loss 156,966 - 156,966 - - 156,966
Financial assets at fair value through equity 3,719 - 3,719 - - 3,719
Securities at amortised cost 10,384 - 10,384 - - 10,384
Loans and receivables due from credit institutions and customers at
1,111,710 - 1,111,710 - - 1,111,710
amortised cost
-Of which repurchase transactions - - - - - -
Accruals and other assets 158,733 - 158,733 - - 158,733
-Of which guarantee deposits granted 48,378 - 48,378 - - 48,378
Other assets not subject to netting 2,498,095 - 2,498,095 - - 2,498,095
TOTAL ASSETS 3,953,674 826 3,954,500 - −13,054 3,941,446

financial liabilities provided as
collateral
Financial liabilities at fair value through profit and loss

-Trading securities 11,587 826 12,413 - −3,550 8,863
-Liabilities designated as at fair value through profit and loss 1,120,667 - 1,120,667 - - 1,120,667
-Debt securities designated at fair value through profit and loss 449,035 - 449,035 - - 449,035
Due to credit institutions and clients 1,692,240 - 1,692,240 - - 1,692,240

Accruals and other liabilities 248,670 - 248,670 - - 248,670
-Of which guarantee deposits received 13,054 - 13,054 - - 13,054
Other liabilities not subject to netting 25,408 - 25,408 - - 25,408
TOTAL LIABILITIES 3,547,607 826 3,548,433 - −3,550 3,544,883

financial assets received as
collateral

-Trading securities 12,606 −2,617 9,989 - −10,590 −601
-Financial assets designated as at fair value 2,240 - 2,240 - - 2,240
-Other financial assets at fair value through profit and loss 162,441 - 162,441 - - 162,441
Financial assets at fair value through equity 4,098 - 4,098 - - 4,098
Securities at amortised cost 10,132 - 10,132 - - 10,132
Loans and receivables due from credit institutions and customers at
824,661 - 824,661 - - 824,661
amortised cost
Accruals and other assets 182,521 - 182,521 - - 182,521
-Of which guarantee deposits granted 36,251 - 36,251 - - 36,251
Other assets not subject to netting 2,469,048 - 2,469,048 - - 2,469,048
TOTAL ASSETS 3,667,747 −2,617 3,665,130 - −10,590 3,654,540

financial liabilities provided as
collateral
Financial liabilities at fair value through profit and loss

-Trading securities 17,502 −2,617 14,885 - −11,620 3,265
-Liabilities designated as at fair value through profit and loss 957,623 - 957,623 - - 957,623
-Debt securities designated at fair value through profit and loss 455,882 - 455,882 - - 455,882
Due to credit institutions and clients 1,620,267 - 1,620,267 - - 1,620,267

Accruals and other liabilities 197,141 - 197,141 - - 197,141
-Of which guarantee deposits received 10,590 - 10,590 - - 10,590
Other liabilities not subject to netting 27,558 - 27,558 - - 27,558
TOTAL LIABILITIES 3,275,973 −2,617 3,273,356 - −11,620 3,261,736

Note 4 – Analysis of income statement items
4.1. Interest and similar revenues

Interest and other revenues on loans and receivables due from credit institutions 1,059 478
- Demand deposits and interbank loans 1,059 478
- Loan and guarantee commitments - -
- Repurchase transactions - -
Interest and other revenues on loans and receivables due from clients 9,446 9,043
- Demand deposits and loans 9,446 9,040
- Repurchase transactions - 3
Interest on financial instruments 23,714 7,603
- Debt instruments at amortised cost 92 37
- Financial assets at fair value through equity - -
- Financial assets designated as at fair value through profit and loss 70 554
- Interest on derivatives 23,552 7,012
Total interest and similar revenues 34,219 17,124
4.2. Interest and similar expenses

Interest and other expenses on loans and payables due to credit institutions, at amortised cost −33,369 −30,105
- Demand deposits and interbank loans −33,369 −30,105
Interest and other expenses on payables due to clients, at amortised cost −726 −315
- Demand deposits and loans −726 −315
Interest on financial instruments −25,784 −8,742
- Debt securities −12,537 −7,582
- Interest on derivatives −13,247 −1,160
Interest and expenses on lease liabilities −436 -
Total interest and similar expenses −60,315 −39,162
31/12/2019 31/12/2018
In thousands of euros Income Expense Income Expense

4.3. Fees
Cash and interbank transactions - −9 - −15
Transactions with clients 77 - 202 -
Securities transactions - - - -
Foreign exchange transactions 29 - 39 -
Off-balance sheet transactions
- Securities commitments 412 - 184 -
- Commitments on forward financial instruments 2,545 −1,486 1,977 −1,221
Financial services 324,876 −75,572 353,902 −83,120
Additions to/reversals of provisions - - - -
Total fees 327,939 −77,067 356,304 −84,356

31/12/2019 31/12/2018
Portfolio Portfolio
Trading Trading
In thousands of euros designated as designated as
portfolio portfolio
at fair value at fair value
4.4. Net gains or losses on financial instruments at fair value through profit
Net gains or losses on financial assets held for trading - −2,959 - −1,363
Net gains or losses on financial liabilities at fair value through profit and loss - −17,799 - 12,587
Net gains or losses on derivatives 19,451 - −11,549 -
Net gains or losses on foreign exchange transactions 37,534 - 32,501 -
Net gains or losses on equity instruments at fair value through profit and loss 216 - −29 -
Net gains or losses on non-SPPI debt instruments (*) 40,256 - 19,841 -

Total net gains or losses on financial instruments at fair value through 97,457 −20,758 40,764 11,224
(*) mainly consisting of net gains resulting from the following funds:
€8,802 thousand from Eres II,
€7,939 thousand from Winch Capital III,
€6,373 thousand from Winch Capital II,
and €5,140 thousand from Cabestan.
4.5. Net gains or losses on financial assets at fair value through equity
Dividends received on equity instruments at fair value through equity 6,918 1,014
Net gains or losses on financial assets at fair value through equity - -
Total net gains or losses on financial assets at fair value through equity 6,918 1,014
4.6. Revenues and expenses relating to other activities

Expenses transferred to other companies 2,089 1,645
Other ancillary income 1,324 2,813
Miscellaneous 7,192 7,293
Revenues from other activities 10,605 11,751
Revenues transferred to other companies −13,984 −13,545
Miscellaneous −1,382 −1,168
Expenses relating to other activities −15,366 −14,713

4.7. General operating expenses

Wages and salaries −96,916 −94,272
Pension expenses −8,293 −8,389
Social security expenses −35,032 −33,753
Employee incentive plans −563 −67
Mandatory employee profit-sharing −3,564 −5,995
Payroll taxes −9,352 −9,008
Additions to provisions for personnel expenses −5,008 −8,618
Reversals of provisions for personnel expenses 6,750 6,576
Sub-total - Personnel expenses −151,978 −153,526
Taxes other than income tax −4,068 −5,884
Rental expenses −3,078 −13,080
External services −75,921 −71,768
Travel expenses −2,182 −2,159
Miscellaneous operating expenses - -
Additions to provisions for administrative expenses −110 -
Reversals of provisions for administrative expenses 117 139
Sub-total - Administrative expenses −85,242 −92,752
Total general operating expenses −237,220 −246,278
4.8. Cost of risk

Additions to provisions for credit risk −93 −396
Net losses on receivables written off −60 1
Reversals of provisions for credit risk 150 59
Reversals of other provisions - -
Amounts recovered on receivables formerly written off - -
Total cost of risk −3 −336
4.9. Gains or losses on other assets

Losses on sales of intangible assets and property, plant and equipment - −239
Gains on sales of intangible assets and property, plant and equipment 1 187
Gain/(loss) on disposals of investments in subsidiaries and associates 1,210 6,338
Total net gains or losses on other assets 1,211 6,286

4.10. Income tax expense and effective tax rate

Consolidated net income 15,965 33,280
Income tax expense 15,744 11,292
Income before tax 31,709 44,572
Non-deductible provisions and expenses 10,008 12,335
Parent company/subsidiary exemption regime and related adjustments 1,615 1,815
Share of net income of associates 105 −3,203
Untaxed consolidation adjustments 16,105 7,990
Miscellaneous non-taxable revenues and other deductions −25,812 −45,716
Items taxed at reduced rates −8,540 −2,909
Income before tax taxable at standard rate 25,190 14,884
Tax rate 32.02% 34.43%
Theoretical tax expense at standard rate 8,066 5,125
Income before tax taxable at reduced rate 8,540 2,909
Tax rate 15.50% 15.50%
Theoretical tax expense at reduced rate 1,324 451
Theoretical tax expense 9,390 5,575
Unrecognised tax losses arising in the period 10,998 410
Unrecognised tax losses used −3,554 −5,030
Tax credits −12 −140
Effect of different tax rates applying to foreign entities −1,210 −963
Tax assessments and tax income relating to previous periods 25 10,794
Other 107 646
Calculated income tax 15,744 11,292
- Of which current tax expense 14,926 26,293
- Of which deferred tax 818 −15,001
Income before tax 31,709 44,572

Income tax expense 15,744 11,292
Average effective tax rate 49.65% 25.34%
Standard tax rate in France 32.02% 34.43%
Effect of permanent differences 2.04% −20.69%
Effect of reduced-rate taxation −4.45% −1.24%
Effect of different tax rates applying to foreign entities −3.82% −2.16%
Effect of losses for the period and use of tax loss carryforwards 23.48% −10.36%
Effect of other items 0.38% 25.36%
Average effective tax rate 49.65% 25.34%

Note 5 – Note on commitments
Commitments given
Loan commitments
To credit institutions - -
To clients 292,492 255,056
Guarantee commitments
To credit institutions 12,443 12,443
To clients 39,110 37,880
Commitments received
Loan commitments
From credit institutions - -
From clients - -
Guarantee commitments
From credit institutions 13,487 10,471
From clients - -

Note 6 – Employee benefits and share-based payments
6.1. Employee benefits under IAS 19
In accordance with IFRS 1 First-time adoption of When it first applied IFRSs, the Group opted to apply
IFRSs, since 1 January 2006 the Group has measured the exception allowed in IFRS 1, allowing all actuarial
and recognised employee benefits under the rules set gains and losses not amortised at 1 January 2006 to be
out in IAS 19. taken to equity at that date.
6.1.A. Pension costs – Defined-benefit plans

The value of the commitments at 31 December 2019
An additional supplementary pension plan set up in was determined by qualified actuaries, applying the
December 2004 was closed on 31 December 2012, following assumptions:
although its provisions were maintained for - discount rate of 0.79% according to the duration of
beneficiaries born before 31 December 1953. the plan (0 year);
It applies to a category of executives for whom the - inflation rate of 1.75% according to the duration of
existing basic and complementary pension plans the plan (0 year);
provide a significantly lower rate of income - expected return on plan assets of 0.79%;
replacement than for other categories of personnel. - expected rate of salary increases, net of inflation,
This plan is a defined-benefit plan expressed in terms of 0.5%.
of the overall final pension (limited in time) or in terms
of the top-up pension it provides in addition to the The discount rate was determined on the basis of the
basic pensions. average yields observed on bonds maturing in 10
Payment of benefits is conditional on the employee years or more issued by eurozone companies with Aa
remaining in the company until retirement. The plan ratings (the benchmark being the iBoxx € corporates
provides for the purchase of an annuity upon index) and the extrapolation of the yield curve in line
retirement to settle the obligation to the beneficiary. with the ECB’s government bond curve.
The beneficiaries of this additional supplementary
pension plan are senior management, members of the Taxation of annuities: Article 113 of French act 2003-
General Management Committee, and senior 775 of 21 August 2003 on pension reform alters the
executives defined in the 35-hour working week way in which social security contributions, the general
agreement as executives not covered by the normal social contribution (CSG) and the tax to repay social-
classification. security debt (CRDS) apply to employers’
The basis for determining the reference remuneration contributions to funding pension benefits. In return for
and calculating the additional pension is gross annual exempting contributions from social security charges,
salary plus bonuses received, before any applicable a tax payable exclusively by the company was
tax or social security charges. established.
The guaranteed additional pension is equal to 10% of The 2010 social security financing act doubled the tax
the reference remuneration between four and eight levied on annuities exceeding one-third of the annual
times the annual limit defined by French social security social security ceiling, raising it from 8% to 16% for any
legislation at the date of settlement of the pension, annuity paid from 1 January 2010.
plus 20% of the portion of the reference remuneration The 2011 social security financing act subsequently
between 8 and 22 times that limit. modified the basis for applying this tax. The allowance
was eliminated and the 16% tax thus applied from the
This additional pension is payable in addition to the first euro of the annuity, for all annuities paid after 1
mandatory basic and supplementary pensions. Gains January 2001.
and losses resulting from its first application are The Group had previously opted for the tax on
treated in accordance with the rules for changes of annuities, but at the end of 2011 it chose to change
accounting method. options as allowed by the 2011 social security
financing act for defined-benefit plans consistent with
The Group therefore allocated the impact of this Article L. 137-11.
change of method, net of deferred taxes, to equity at It is now taxed at 12% based on all contributions paid
the date of its first application (€8.381 million). That into the fund.
impact resulted from the recognition of previously That rate is set by Article 32 of France’s 16 August
unrecognised post-employment benefits, in a pre-tax 2012 mini-budget at 24% for all payments in respect of
amount of €12.825 million. Benefit commitments were periods beginning after 31 December 2012.
discounted at the rate of 4.25%. At 31 December 2019, the amount of commitments
came to €27.581 million before tax and the fair value
of assets was €22.773 million, resulting in a provision
of €4.808 million.

Financial assets representing commitments (for the additional supplementary pension)
Portfolio structure 31/12/2019 31/12/2018
Equities 33.27% 32.17%

Bonds 50.55% 52.61%
Real estate 13.66% 13.05%
Money market and other 2.52% 2.17%
Return on plan assets 0.79% 1.89%
Defined-benefit post-employment benefits (additional supplementary pension)

Present value of the commitment 27,581 27,266
- Value of plan assets −22,773 −22,055
Financial position of plan 4,808 5,211
- Unrecognised past service cost - -
Provision 4,808 5,211
6.1.B. Termination benefits for retiring employees
Termination benefits for retiring employees are a post- Actuarial gains and losses on the plan for termination
employment benefit and are part of the defined- benefits for retiring employees are recorded in other
benefit plan category. comprehensive income. The Group has opted to apply
Entitlements to termination benefits for retiring the amendment to IAS 19 allowing actuarial gains and
employees in Group companies are defined by the losses related to experience adjustments and/or
following collective agreements: changes in assumptions to be recognised in equity.
- - the French national collective agreement for The selected discount rate of 0.79% is based on the
banks (no. 2120) for all companies; yields on long-term corporate bonds at the time of
- - the French national collective agreement for measurement (yield shown by the iBoxx € Corporate
insurance and/or reinsurance brokerage firms (no. AA 10+ index) and on the extrapolation of the yield
2247) for Edmond de Rothschild Assurances et curve in line with the ECB’s government bond curve.
Conseils (France).
The following remuneration basis is used to calculate

the benefit payable to retiring employees:
- for the national collective agreement for banks,
1/13th of the average remuneration the beneficiary
received or would have received over the past 12
months, excluding any standard or exceptional
bonus and any variable component of pay;
- for the national collective agreement for insurance
brokerages, 1/12th of the remuneration the
beneficiary received or would have received over
the past 12 months.
The compensation cannot be lower than the

retirement compensation defined by French
employment law.
These arrangements are not funded by an insurance
policy.
The actuarial method used to value the liability is the
projected unit credit method.

The gross liability was €6.026 million at 31 December came to €36 thousand and the actuarial loss with
2018 and €7.329 million at 31 December 2019. Service respect to 2019 was €652 thousand.
cost was €553 thousand in 2019, the cost of
discounting was €98 thousand, actual benefits paid
Defined-benefit post-employment benefits (additional supplementary pension and termination benefits

for retiring employees)
Breakdown of the expense recognised
Current period service cost −557 −503

Interest cost −567 −516
Expected return on plan assets 349 374
Net expense recognised −775 −645
Defined-benefit post-employment benefits
Main actuarial assumptions (termination benefits for retiring employees) 31/12/2019 31/12/2018
Discount rate 0.79% 1.89%

Expected long-term inflation rate 1.75% 1.75%
Salary increase
- Clerical workers 2.75% 2.75%
- Executives and senior management 3.25% 3.25%
- Senior executives 3.75% 3.75%
Rate of employer’s social security charges and taxes 61.90% 61.90%
Mortality rates THTF 13 15 THTF 10 12
Main actuarial assumptions (additional supplementary pension) 31/12/2019 31/12/2018
Discount rate 0.79% 1.89%

Salary increase rate, net of inflation 0.50% 0.50%
Average remaining working life of employees 0 year 1 year
Mortality rates TGH -TGF 05 TGH -TGF 05
Analysis of sensitivity of post-employment benefit commitments to changes in the main actuarial

assumptions
Impact of the change (additional supplementary pension) 31/12/2019
Change of -0.50% in the discount rate: 0.29% (0.79% - 0.50%)

– Impact on present value of commitments at 31 December 2019 0.00%
– Impact on net total expense in 2019 −63.29%
Change of +0.50% in the discount rate: 1.29% (0.79% + 0.50%)
– Impact on present value of commitments at 31 December 2019 0.00%
– Impact on net total expense in 2019 63.30%

Change in provision
Provision/asset at the beginning of the period 11,237 9,905

– Expense recognised in profit and loss 811 718
- Benefits directly paid by the employer (unfunded) −36 −73
- Changes in consolidation scope (acquisitions and disposals) - 120
- Actuarial gains and losses 125 567
Provision/asset at the end of the period 12,137 11,237

Recognition of commitments
Change in the value of commitments

Present value of the commitment at the beginning of the period 33,292 33,793
- Past service cost 593 576
- Discount expense 567 516
- Employee contributions
- Actuarial gains or losses 1,533 −607
- Benefits paid by the employer and/or the fund −1,075 −1,106
- Changes in consolidation scope (acquisitions and disposals) - 120
Total present value of the commitment at the end of the period (A) 34,910 33,292
Change in plan assets and reimbursement rights
Fair value of plan assets at the beginning of the period 22,055 23,888
- Return on plan assets 349 374
- Actuarial gains or losses 1,408 −1,174
- Benefits paid by the fund −1,039 −1,033
Fair value of plan assets at the end of the period (B) 22,773 22,055
Funding status
Financial position (A) - (B) 12,137 11,237
Provision / asset 12,137 11,237

6.1.C. Deferred remuneration
The Group’s remuneration policy is in accordance with

the French ministerial decree of 3 November 2009
relating to the remuneration of employees whose
professional activities may affect the risk exposure of
credit institutions, and with the professional standards The Bank’s system
of the French Banking Federation (FBF) issued on 5
November 2009. 1 – “Risk-taker” employees
The employees concerned are:
- members of the Executive Committee, the
Executive Board (or Board of Directors as the case
That remuneration policy was approved by the Bank’s may be) and Senior Management
Supervisory Board on 23 March 2010 after a - heads of Control Functions (Audit, Risk
favourable opinion from the Remuneration Committee. Management, Compliance) and those with
It was adjusted in line with the new provisions of the managerial responsibilities that report to them
French government order of 13 December 2010. - heads of Business Units and those with managerial
The Group applies the aforementioned professional responsibilities that report to them
standards, taking into account individual employee - heads of certain Support Functions (including
performance, competition in its markets, long-term Finance, HR, IT, Legal etc.)
objectives and the interests of shareholders. - heads of Risk Management and Members of Risk
Committees
Regulatory environment - heads of New Products and Members of New
Products Committees
The Decree of 3 November 2009 and the professional - managers of Risk-Takers
standards of the French Banking Federation have - employees whose total remuneration is €500,000 or
required financial institutions to regulate variable more and/or employees in the top 0.3% in terms of
remuneration payment practices for financial market remuneration
professionals and executives, to ensure that financial - employees whose total remuneration is at least
institutions have a level of equity that would not equal to that of the Senior Management member
expose them to risk. with the lowest remuneration
The Decree of 13 December 2010 extends the FBF
standards issued on 5 November 2009 – which were The calculation of variable remuneration for “risk-
reserved for financial market executives and taker” employees complies with the following
professionals, defined as employees whose guidelines:
performance and remuneration are linked to market
instruments – to “risk-taker” employees and all Bonuses must be partially deferred on a straight-line
employees within an equivalent remuneration bracket basis over a minimum of three years when they reach
and whose professional activities are likely to have an a certain level of variable remuneration.
impact on the firm’s risk profile. It also adopted the
FBF criteria regarding payment of variable As regards variable remuneration with respect to 2019
remuneration to the employees concerned. that has reached a certain threshold, 40-60% will be
In addition, the AFG, AFIC and ASPIM issued common paid in cash and/or instruments and spread over three
provisions on the remuneration policies of asset years.
management companies on 23 November 2010. The
CRD IV directive (2013/36/EU), adopted by the The Bank has put in place an instrument to pay cash
European Parliament and Council on 26 June 2013, remuneration, deferred over three years in three equal
was transposed into French law by the French instalments, linked to the share price of Edmond de
government order of 3 November 2014, replacing Rothschild Holding S.A. (the unlisted Swiss holding
CRBF regulation 97-02 of 21 February 1997. company of the Edmond de Rothschild Group), known
as the Group Performance Plan.
2 – Managers, sales staff of asset management

Governance and formalisation of existing
companies
practices Under the AIFM and UCITS V Directives, Edmond de
In accordance with the aforementioned texts, an Rothschild Asset Management (France) has adjusted
annual report on the variable remuneration of the
its remuneration policy, and particularly its practices in
employees concerned is to be sent to France’s terms of deferred variable remuneration for fund
prudential supervision and resolution authority managers and other categories of staff covered by the
(Autorité de Contrôle Prudentiel et de Résolution). The
Directives (“Material Risk-Takers”).
process for determining remuneration and the The main characteristics of the policy are as follows:
resulting budgets must be examined by the Bank’s - 40-60% of the variable remuneration granted to a
Remuneration Committee.
beneficiary is deferred for three years,

- at least 50% of the variable remuneration (both de Rothschild (France) for the cost of acquiring its
deferred and immediate) is linked to a basket of own shares to be transferred to French Beneficiaries.
securities that represents the Group’s various
asset-management skills, An expense is recorded with respect to services
- payment of deferred remuneration is subject to rendered by employees. Since there is no undertaking
beneficiaries’ continued employment within the to pay any cash sum to employees, the plan qualifies
company and the various conditions set out in the as equity-settled (IFRS 2.43B), which has the following
AIFM and UCITS V Directives (no excess risk- accounting consequences:
taking, company’s financial position etc.), which - An expense is determined at the grant date and is
may reduce its amount between the initial grant not subsequently remeasured, except to take account
date and vesting date. of changes in service and/or performance conditions
(IFRS 2.B57).
To enable the company to cope with a sharp increase - The expense is spread over the period during which
in the basket’s value, a hedging mechanism will be the services are rendered, with a balancing entry in an
used. equity account representing the parent company’s
contribution (IFRS 2.B53).
Remuneration expense is recognised gradually to - That period is the period during which the
reflect the fact that its vesting depends on the beneficiaries render services to the Group on the basis
beneficiaries’ continued employment within the of the conditions of continued employment that must
company. be met for the rights to vest. The expense for the 2019
Where the fund’s returns increase, the hedged portion is being spread between 1 January 2019 and the
of the variable remuneration payable will not be vesting dates, i.e. over 2.25, 3.25 and 4.25 years for
remeasured. The hedging asset will continue to be the tranches due to vest in March 2021, March 2022
measured at historical cost. The unhedged portion will and March 2023 respectively.
be covered by a provision.
If the fund’s returns decrease, the hedging asset will In 2019, the net expense relating to the Group’s
be written down (to market value), and the variable Employee Share Plan was €964 thousand as opposed
remuneration payable will be reduced. to €1,534 thousand in 2018.
Employee Share Plan
The Edmond de Rothschild Group has adopted a plan

under which shares in Edmond de Rothschild Holding
S.A. (EdRH, the unlisted Swiss holding company of the
Edmond de Rothschild Group) are granted free of
charge to certain Group employees (“Beneficiaries”).
This plan is intended to increase retention of key staff
and help ensure that the interests of employees and
shareholders are aligned.
The plan’s main characteristics are as follows:

- The Beneficiaries are granted rights to receive
EdRH shares over a three-year vesting period (one
third per year, i.e. tranches vesting in March N+2,
March N+3 and March N+4).
- The Beneficiaries own the shares on the vesting
date, but they only acquire economic rights, not
voting rights. They have the status of “participation
certificates” under Swiss law.
- The shares received can only be sold after the lock-
up period has expired.
- The timeframe for selling them is limited, since
each year’s plan has a seven-year life. Shares can
only be sold back to Edmond de Rothschild
Holding S.A.
Participation certificates will be transferred to Edmond

de Rothschild (France) Beneficiaries by Edmond de
Rothschild Holding S.A.
Under the contract between Edmond de Rothschild
Holding S.A. and Edmond de Rothschild (France),
Edmond de Rothschild Holding S.A. will bill Edmond

Note 7 – Additional information
Percentage held Percentage controlled
31/12/2019 31/12/2018 31/12/2019 31/12/2018
7.1. Scope of consolidation

Controlled companies
Holding companies
• Financière Boréale 100.00 100.00 100.00 100.00
• EdR Real Estate (Eastern Europe) Cie SàRL * 62.73 62.73 62.73 62.73
• CFSH Luxembourg SARL * 100.00 100.00 100.00 100.00
• CFSH Secondary Opportunities SA * 100.00 98.00 100.00 98.00
• Edmond de Rothschild Europportunities Invest II SàRL * 58.33 58.33 58.33 58.33
• Edmond de Rothschild Europportunities Invest SàRL * 81.67 81.67 81.67 81.67
• Bridge Management SàRL * 99.99 99.99 100.00 100.00
Investment company
• Edmond de Rothschild Securities (Hong Kong) Limited * 100.00 100.00 100.00 100.00
Asset management companies
• Edmond de Rothschild Asset Management (France) 99.99 99.99 99.99 99.99
• Edmond de Rothschild Private Equity (France) 100.00 100.00 100.00 100.00
• Edmond de Rothschild Europportunities Management SàRL * 100.00 100.00 100.00 100.00
• Edmond de Rothschild Europportunities Management II SàRL * 68.68 68.68 68.68 68.68
• EdR Real Estate (Eastern Europe) Management SàRL * 100.00 100.00 100.00 100.00
• LCFR UK PEP Limited * 100.00 100.00 100.00 100.00
• Edmond de Rothschild Asset Management (Hong Kong) Limited * 99.99 99.99 100.00 100.00
• Edmond de Rothschild Investment Partners China SàRL * 100.00 100.00 100.00 100.00
• Cleaveland 100.00 100.00 100.00 100.00
• ERAAM 34.00 - 34.00 -
• EDR Immo Magnum 100.00 100.00 100.00 100.00
Advisory companies
• Edmond de Rothschild Corporate Finance 100.00 100.00 100.00 100.00
Insurance company
• Edmond de Rothschild Assurances et Conseils (France) 100.00 100.00 100.00 100.00
Other
• Edmond de Rothschild Boulevard Buildings Ltd * 100.00 100.00 100.00 100.00
• Groupement Immobilière Financière 100.00 100.00 100.00 100.00
Associates
Bank
• Edmond de Rothschild (Monaco) 36.93 42.78 36.93 42.78
Asset management companies

• Zhonghai Fund Management Co. Ltd * 25.00 25.00 25.00 25.00
* Foreign company.
31/12/2019 31/12/2018
7.2. Average number of employees

French companies 730 730
- Operatives 78 93
- Executives and senior management 652 637
Foreign companies 53 59
Total 783 789
Pursuant to the provisions of the French Commercial The number of workers employed part-time or for less
Code, the Group publishes a breakdown by category than the full year is taken into account in proportion to
of its average workforce during the period. the average time worked as compared to the full-time
hours laid down by agreement or statute.
7.3. Unconsolidated special purpose entities
A special purpose entity is an entity designed so that The Group carries out transactions with sponsored
voting rights or similar rights are not the determining special purpose entities through its fund management
factor in establishing control over the entity. activities. Funds are offered to institutional and

individual clients, and the Group handles distribution In 2019, €16.0 million was invested with respect to
and commercial monitoring in respect of the funds. sponsoring (for a total exposure of €76.1 million at 31
December 2019). No new commitments were taken in
2019, and so the residual amount at end-2019 was
€32.2 million.
The Group uses a “carried interest” mechanism, in line
with market practices.
7.4. Post-balance sheet events
The consolidated annual financial statements presented for approval at the Annual General Meeting
contained in this document were finalised by the of 6 May 2020.
Executive Board on 3 March 2020 and will be
7.5. Disclosures concerning capital
Pursuant to French Banking and Financial Regulation At 31 December 2019, the share capital of Edmond de
Committee regulation 2000-03, the solvency ratio is Rothschild (France) amounted to €83,075,820,
assessed at the level of Edmond de Rothschild consisting of 5,538,388 shares with nominal value of
(France), which meets capital adequacy requirements. €15 each.
7.6. Statutory auditors’ fees
Statutory auditors’ fees shown in the income statement for the 2019 financial year are as follows:
In thousands of euros PwC Cabinet Kling Other 2019 2018
Fees for statutory audit, certification and examination of the parent

479 334 45 858 772
company and consolidated financial statements
Edmond de Rothschild (France) 240 179 35 454 433
Edmond de Rothschild Asset Management (France) 72 73 - 145 110
Other 167 82 10 259 229
Services other than certification of the financial statements(1) 53 11 - 64 236
Edmond de Rothschild (France) 50 8 - 58 95
Edmond de Rothschild Asset Management (France) 3 3 - 6 120
Other - - - - 21
Other services provided by the networks to fully consolidated subsidiaries - - - - -
Total 532 345 45 922 1008
(1) Services other than the certification of financial statements consist of comfort letters, agreed procedures, declarations of compliance
with accounting rules and regulatory consultations.
The amounts mentioned above include the following fees relating to the statutory auditing of the financial statements of Edmond de
Rothschild (France) and its subsidiaries:
a) by PricewaterhouseCoopers Audit for €479 thousand for the certification of financial statements and €53 thousand for services other
than the certification of financial statements;
b) by Cabinet Didier Kling for €334 thousand for the certification of financial statements and €11 thousand for services other than the
certification of financial statements.

Note 8 – Operating segments
The Group’s operations are organised around two its businesses, expenses related to this business
strategic business lines (Asset Management and line’s specific activities and its coordination role
Private Banking) and one further business line within the Group, and income and expenses not
(Other Activities and Proprietary Trading). directly attributable to the other business lines.
Private Banking covers a range of services including: Methodologies

- portfolio and private asset management, asset Each business line’s management accounts are
engineering and family office services; intended to:
- corporate advisory services for family-owned - show the results of each business line as if it
businesses. were an independent entity;
- provide a fair view of their results and
Asset Management covers the following four types profitability over the period.
of management:
- equities, diversified assets, and convertible The main conventions used in establishing these
bonds; accounts are as follows:
- funds of funds, both traditional and hedge funds; - each business line’s net banking income
- fixed income and credit, as well as structured, corresponds to the revenues generated by its
quantitative and direct alternative asset business, net of fees passed on to business
management; providers;
- private equity funds. - each business line’s management expenses
comprise its direct costs, its share of expenses
The “Other Activities and Proprietary Trading” related to the logistical and operational support
business line includes: provided by the Bank, and a share of the Group’s
- under Other Activities, corporate advisory overheads;
services provided by the dedicated subsidiary - provisions are allocated between the business
Edmond de Rothschild Corporate Finance, lines to reflect the risk inherent in each business
including M&A advisory, business valuations and line’s activities. Provisions that cannot be
financial engineering, the proprietary activities of allocated to a business line are allocated to
the Capital Markets Department and the Proprietary Trading.
activities of Cleaveland, which specialises in
managing French real-estate assets for third A detailed analysis of each business line’s results
parties; and its contribution to Group earnings is provided
- under Proprietary Trading, management of the below.
Group’s assets (particularly its securities
portfolio), the Bank’s financing activities for all of
Other Activities and
Private Banking Asset Management Private Equity Group
Proprietary Trading
In thousands of euros 2019 2018 2019 2019 2019 2019 2019 2019 2019 2019
Net banking income 83,779 86,824 141,615 165,686 5,209 4,700 73,028 42,740 303,631 299,950
Operating expenses −81,002 −83,980 −133,623 −138,104 −6,273 −6,766 −44,021 −35,629 −264,919 −264,479
Personnel expenses −49,475 −52,115 −72,484 −77,334 −3,870 −4,611 −26,150 −19,466 −151,979 −153,526
- direct −35,613 −38,064 −54,063 −57,787 −3,289 −4,066 −19,042 −14,204 −112,007 −114,121
- indirect −13,862 −14,051 −18,421 −19,547 −581 −545 −7,108 −5,262 −39,972 −39,405
Other operating expenses −24,105 −25,309 −51,945 −51,951 −2,212 −1,993 −6,979 −13,499 −85,241 −92,752
Depreciation and amortisation −7,422 −6,556 −9,194 −8,819 −191 −162 −10,892 −2,664 −27,699 −18,201
Gross operating income 2,777 2,844 7,992 27,582 −1,064 −2,066 29,007 7,111 38,712 35,471
Cost of risk - - 0 - - - −3 −336 −3 −336
Operating income 2,777 2,844 7,992 27,582 −1,064 −2,066 29,004 6,775 38,709 35,135
Share in net income of associates 7,571 7,045 −7,676 −3,800 - - - −42 −105 3,203
Net gains or losses on other assets - - - - 1 - 1,210 6,286 1,211 6,286
Change in value of goodwill - - −8,105 - - −52 - - −8,105 −52
Recurring income before tax 10,348 9,889 −7,789 23,782 −1,063 −2,118 30,214 13,019 31,710 44,572
Income tax −993 −957 −2,815 −9,181 440 958 −12,376 −2,112 −15,744 −11,292
Net income 9,355 8,932 −10,604 14,601 −623 −1,160 17,838 10,907 15,966 33,280

Note 9 – Transactions with related
parties
Edmond de Rothschild (France) was a subsidiary of Transactions with related companies
Edmond de Rothschild S.A. (EdR S.A.) until 7 August
2019. Since then, it has been owned by Edmond de Note 7.1 lists all companies consolidated by Edmond
Rothschild (Suisse), which is itself a subsidiary of de Rothschild (France).
Edmond de Rothschild Holding S.A. (EdRH), the Since transactions and year-end outstanding balances
ultimate owner being Baron Benjamin de Rothschild. with fully consolidated Group companies are totally
eliminated through consolidation, the table below only
All transactions took place in the ordinary course of shows data for transactions with companies over
business and on terms comparable to the terms of which the Group has significant influence and which
transactions with similar parties or, where relevant, are accounted for by the equity method.
with other employees.
Parties related to the Edmond de Rothschild (France) Transactions with associates
group are companies consolidated by Edmond de
Rothschild (France) and by the EdRH group. In Note 3.9 lists all companies accounted for by the
accordance with IAS 24, members of the Supervisory equity method.
Board and members of the Executive Board of
Edmond de Rothschild (France), their spouses and
dependent children are also considered related
parties.
31/12/2019 31/12/2018

Loans and receivables due from credit institutions
Accruals and other assets 102 149
Assets 102 149
Financial liabilities at fair value through profit and loss 380,407 419,916
Due to credit institutions 9,537 15,397
Due to clients
Accruals and other liabilities 836 810
Liabilities 390,780 436,123
+ Interest and similar revenues 6
- Interest and similar expenses −7,973 −9,830
+ Fee income 69 148
- Fee expense −3,308 −3,759
+ Other revenues 104 221
- Other expenses -
Net banking income −11,102 −13,220
- General operating expenses
Gross operating income −11,102 −13,220
Transactions with the parent company
31/12/2019 31/12/2018
Financial assets at fair value through profit and loss 175,000

Loans and receivables due from credit institutions 370 -
Accruals and other assets 2,445 327
Assets 177,815 327
31/12/2019 31/12/2018
Financial liabilities at fair value through profit and loss 709,033

Due to credit institutions 572
Due to clients 86,797
Accruals and other liabilities 6,132 13,495
31/12/2019 31/12/2018
+ Interest and similar revenues 50

- Interest and similar expenses −154
+ Fee income 1,044 15
- Fee expense −1,988
+ Other revenues 298 276
- Other expenses
Net banking income −750 291
- General operating expenses −2,331 −212
Gross operating income −3,081 79
Transactions with other related parties
These are transactions with EdRH and its subsidiaries, and with EdR S.A.’s subsidiaries.
31/12/2019 31/12/2018
Financial assets at fair value through profit and loss 4 -

Loans and receivables due from credit institutions 3,606 6,999
Loans and receivables due from clients
Accruals and other assets 40,715 63,258
Assets 44,325 70,257
31/12/2019 31/12/2018
Financial liabilities at fair value through profit and loss 7,367 520,831
Due to credit institutions 153 6,443
Due to clients 3,588 2,837
Accruals and other liabilities 3,989 12,225
Provisions 1,667 1,630
31/12/2019 31/12/2018
+ Interest and similar revenues 249 373

- Interest and similar expenses −66
+ Fee income 83,174 94,750
- Fee expense −7,895 −10,230
Net gains or losses on financial instruments at fair value through profit and loss 11,767
+ Other revenues 6,130 6,461
- Other expenses −183 −152
- General operating expenses −5,653 −6,871
Transactions with related natural persons

31/12/2019 31/12/2018
Loans and overdrafts 19,028 19,045

Assets 19,028 19,045
31/12/2019 31/12/2018
Demand deposits 1,064 2,284

31/12/2019 31/12/2018

Net banking income 46 115
Gross operating income 46 115

Note 10 – Risk management and financial instruments
Part 1
General risk management policy
Section 1 – Internal control Section 2 – Description of second-level entities

To meet the requirements of its regulators, the Bank The Compliance and Control Department and the
has set up an internal control system that enables it to Central Risk Department are second-level control
manage risk on a consolidated basis. entities that each work very closely with the first-level
compliance officers of their respective business lines
The components of this system are designed to to set targets, continuously improve methods and
provide the corporate bodies and the Risk Committee tools and co-ordinate control activities.
with an accurate view of the risks so that they can be More specifically:
managed appropriately.
- The Compliance and Control Department is tasked
The experience gained in this process by the internal with implementing continuous monitoring
control teams, and the close involvement of the mechanisms. It lies at the second level of the
corporate bodies, means that a consolidated view of control system and oversees the implementation of
risk can be established for the Bank itself, but also for first-level controls by the operational departments
its clients. and provides assistance to the business lines. This
entails informing and training employees to provide
The internal control system is organised on three them with adequate knowledge of the regulations
levels: and the internal procedures governing their
activities. It also ensures compliance with the ethics
- first level: in addition to operational staff and their policies applicable to employees and in the context
line managers, a network of controllers and of efforts to combat money laundering and the
compliance officers within departments and financing of terrorism.
operating subsidiaries constitutes the first level of
internal control; - The Central Risk Department, an essential link in
the second-level internal control system, consists
- second level: the Compliance and Control of three units tasked with monitoring:
Department oversees the proper implementation of A) risks relating to proprietary activities
internal control measures at the first level, and the (Proprietary Risk Control), including
Central Risk Department ensures the consolidated counterparty, liquidity and market risks.
monitoring of financial risks in the Bank’s activities; B) risks relating to the management of assets for
third parties and borne by asset managers
- third level: the Internal Audit Department applies within the Bank and its asset management
third-level controls to all of the Bank’s structures. subsidiaries.
During specific or group-wide assignments, it C) operational risks relating to potential process
reports on the quality of internal control, possible and system failures and fraud. Alongside
improvements and the security of processes. The these monitoring tasks, the CRD implements
maturity of the risk management system and and updates a risk map, which may give rise
controls performed by the second-level control to action plans or alerts based on a formal
entities give the Internal Audit Department a escalation policy.
reliable foundation on which to base its
investigations, on which it reports directly to the In addition to its own role in monitoring financial risk,
Risk Committee. the Central Risk Department is also responsible for
leading the Group’s risk management organisation,
including setting up cross-functional committees that
review the overall risks inherent in the Bank’s
activities. The Compliance and Control Department
ensures the operational compliance of this risk
management organisation.
Section 3 – Internal control consolidation at the

Edmond de Rothschild Group level
Harmonised methods for assessing and calculating risk
allow risks to be consolidated at the level of the Swiss
holding company.

The consolidated risk management system that the Section 2 – Authorisation, monitoring and
Edmond de Rothschild Group intends to put in place
assessment procedures
will involve increased communication between teams
and the adoption of continuously improved reporting
mechanisms. Authorisation procedures
Credit risks are generally accepted on condition that

the expected return provides satisfactory coverage of
Part 2 the risk of loss in the event of default by the client or
counterparty. While guarantees are generally sought,
Counterparty credit risk management
this is never a substitute for an ex-ante analysis of the
risks.
Counterparty credit risk is the risk of loss caused by Different rules and methods apply to transactions with
the inability of a client or counterparty to honour its clients and capital markets transactions.
financial obligations. This risk includes settlement risk
during the period between the point at which the
payment or delivery order for a financial instrument Loans and signed commitments granted to private
sold can no longer be unilaterally cancelled by the banking clients
Bank, and the final reception of the financial asset
purchased or the corresponding cash. In most cases, financing for clients (loans or signed
commitments) is overseen by the Credit Committee,
which meets weekly and is chaired by the Chairman of
Section 1 – Risk-generating activities
the Executive Board or another member of the
Counterparty credit risks borne by the Group originate Executive Board. Before any such arrangement is
from: entered into, the Credit Department examines the
application submitted by the client advisor concerned
1. transactions with Private Banking clients and funds (or by a Group asset management company where the
managed by the Group’s asset management beneficiary is a managed fund). This department
companies, particularly in connection with the issues a reasoned opinion on the quality of the
following operations: proposed risk, and sends the entire file to the Credit
- loans or commitments to Private Banking Committee for final decision, which is evidenced by a
clients; formal approval document signed by the Committee’s
- overdrafts on current accounts for private chairman. Cases that exceed the Credit Committee’s
clients; powers are submitted to the whole Executive Board
- occasional overdrafts of funds managed by the by Edmond de Rothschild Group’s Chief Financial
Group’s asset management companies that are Officer.
transferred to the Bank (such overdrafts result
from the time gap between purchases and sales In addition, loans and commitments may be granted to
of securities); certain staff members in the Private Banking Division.
- foreign exchange transactions with certain in- Those delegations of authority are subject to strictly
house funds to hedge the exchange-rate risk defined limits, and are governed by an ad-hoc internal
resulting from positions in foreign currencies; procedure.
2. over-the-counter transactions entered into as part Finally, loans and commitments granted under
of proprietary trading activities, principally with delegations of authority are always brought to the
banks or large companies with satisfactory credit attention of the Credit Department, which ensures that
ratings. delegated powers are complied with.
As regards over-the-counter transactions, bank

counterparties are examined every six months by a
specific committee.
In 2008, in view of the sudden decline in the financial
standing of a number of bank counterparties,
Proprietary Risk Control strengthened its day-to-day
monitoring arrangements by collecting and analysing
the information provided by credit default swap (CDS)
spreads.
This monitoring has been extended to cover corporate

and sovereign issuers. To supplement this mechanism
and comply with CRBF regulation 97-02 of 21
February 1997, the Central Risk Department has

implemented its own method for assessing credit risk Risk monitoring and assessment process
that relies on scoring by internal experts, in addition to
the use of external ratings. This internal model Loans and signed commitments granted to Private
measures the borrower’s creditworthiness by means of Banking clients
financial analysis and scoring techniques.
Monitoring compliance with limits
Commercial counterparties (particularly large-public
sector companies) also require formal approval from Relationship managers are responsible for the day-to-
the same committee. Individual risk limits for all capital day monitoring of accounts that shown an overdraft or
market counterparties (bank and commercial) are set an overdraft in excess of the authorised amount. To
by the aforementioned committee for each Group carry out that monitoring, they receive alerts relating
entity, ensuring in advance that those limits are to limit breaches every morning. The Private Banking
consistent with the risk appetite of the Edmond de Division also carries out a check on statements of
Rothschild Group. limits exceeded over a materiality threshold, for all
accounts in the Bank’s books. Similarly, the Credit
These individual limits are, where appropriate, Department checks that limit breaches comply with
supplemented by so-called “group” limits, which delegated powers in terms of both amount and
govern exposures to any group of third parties duration. If necessary, it sends a request to the
deemed to be a single beneficiary within the meaning relationship manager (with a copy to his/her superior)
of Article 3 of Regulation 93-05 on monitoring large so that appropriate measures can be defined and
exposures. Investment limits are assigned on the basis applied. Where it believes that it is justified in the
of the internal rating established by the Central Risk context, the Credit Department informs the Credit
Department and on the analysis of the Committee, so that it can take a decision aimed at
creditworthiness of individual counterparties. resolving the type of situation in question.
Two types of limits are defined: Finally, every month, the Credit Department presents
a summary of accounts showing a discrepancy and
- limits on amounts: the maximum amount of risk hands it to the Private Banking division and General
(both on- and off-balance sheet) that the Bank is Management in the monthly Risk Committee meeting.
willing to accept for a counterparty (or group of
related counterparties); Monitoring collateral
- time limits: this determines the maximum term of Financing granted by the Bank is usually covered by
transactions. The term is dependent on the rating collateral, primarily in the form of pledged securities
of the counterparty or issuer, among other factors. accounts or assigned insurance policies. The value of
collateral is monitored by the Credit Department,
Any deterioration in the quality of a counterparty which receives daily alerts on collateral that provides
deemed to be material or any change in regulatory insufficient coverage relative to the loan granted.
requirements triggers the immediate review of A monthly summary is prepared for submission to the
authorisations granted to the entity during each Private Banking Division and General Management in
monthly Risk Committee meeting. the monthly Risk Committee meeting, setting out any
irregularities. However, when warranted, the Credit
Department can also make the Credit Committee
aware of any loan showing insufficient coverage prior
to the end of the month so that action can be action.

Processing doubtful loans payment is made, the collateral received is interfaced
with Moody’s Analytics’ RiskOrigin counterparty risk
Doubtful loans and commitments are transferred to management system. In the event of disagreement
the Legal Department for monitoring. These items are with the counterparty, no flow is exchanged, and the
reviewed quarterly by the Doubtful Loans Committee, status is updated to “abandon”. An incident report
which is chaired by the Bank’s Chief Executive Officer. listing all “abandoned” margin calls is sent to
This Committee also examines all litigation that may Proprietary Risk Control.
involve the Group. All framework and collateral agreements are
examined, before they are signed, by a legal advisor
Over-the-counter transactions with specialist knowledge of capital markets
transactions, and the amounts of allowances are
Management of credit risks associated with capital approved by the Central Risk Department.
market transactions is primarily based on strict
selection of authorised counterparties. It also involves Use of the CLS system for foreign-exchange
risk mitigation and elimination techniques selected by transactions
the Group with respect to its primary counterparties, Since March 2006, the Bank has belonged to the CLS
i.e. the establishment of framework agreements and system, which eliminates the settlement risk usually
collateral agreements, and use of the Continuous Link associated with over-the-counter foreign-exchange
Settlement (CLS) system. Credit risk management also transactions. The system has considerably reduced
incorporates daily monitoring of compliance with risk settlement/delivery risk on foreign currency
limits and market counterparty monitoring. transactions; at 31 December 2019, 64.07% of spot and
forward foreign currency transactions with external
Framework agreements and collateral agreements counterparties went through the CLS system.
To reduce counterparty risk on off-balance-sheet Monitoring of risk limit compliance

transactions, framework agreements have been
established in every case for several years. At 31 Exposure is remeasured daily on a mark-to-market
December 2019, 92% of gross off-balance sheet risks basis plus an add-on intended to cover the risk of
were covered by such agreements for market potential deterioration during the time to maturity of
counterparties. The remainder relates to transactions each contract. The add-on depends on the nature and
with a private-equity fund managed by a Group entity. term of the contract. Monitoring is fully automated
Of the risks not covered by a framework agreement, using a new software platform (RiskOrigin, Moody’s
almost all concerned transactions with Group entities Analytics since June 2008) and satisfies the most
at that date. stringent market requirements.
In addition, after the adoption of the delegated
regulation supplementing the EMIR regulation with Desk managers are informed daily about
regard to regulatory technical standards for risk counterparties’ outstandings and limit usage. Each
mitigation techniques for OTC derivative contracts not operator is responsible for complying strictly with the
cleared by a central counterparty on 4 October 2016, risk limits assigned to his/her profit centre, and must
collateral agreements (credit support annexes or inform his/her superiors immediately if any limit is
CSAs) were updated with 26 counterparties. Since exceeded.
then, transactions with counterparties that have not
signed such agreements have been limited to spot The Central Risk Department reviews counterparty
foreign-exchange transactions. The characteristics of limit compliance daily for all the Group’s capital
those agreements are entered in the OSACAS market activities. The Bank’s Executive Board is
database. alerted if any limit is exceeded.
The Structured Products Back Office is responsible for
the monitoring and administrative processing of The monthly Risk Committee reviews risk exposure,
collateral. As of the date of this document, the limits exceeded and the methods for resolving the
collateral accepted by the Bank consists exclusively of situation. The monthly Risk Committee also monitors
cash. Every day, the KTP tool calculates a theoretical the formation of framework and collateral agreements.
margin call for each active counterparty. That
information is then sent to the DSI Collateral system so Monitoring counterparties
that an initial provisional status can be assigned.
Notice to pay is sent to the counterparty when the The Central Risk Department oversees commitments
status relates to a receivable margin call. Once and continuously monitors market counterparties in

order to identify risks of default at an early stage.
Proprietary Risk Control must submit a report to the
monthly Risk Committee on counterparties affected by
significant events such as a change of ownership, a
downgraded internal rating or reported losses. All
limits on bank counterparties are systematically
reviewed twice a year, taking into consideration
financial data, macroeconomic data and ratings. Credit
risks relating to financial institutions and sovereign
entities are only incurred with respect to
counterparties whose solvency is considered beyond
reproach. A warning system on CDS spreads was
established in early September 2008. CDS data are
provided by CMA Datavision, an independent
company based in London and New York. Spreads are
measured on the basis of a model combining relevant
market CDS prices collected from reliable
contributors, ratings and other sector data. The
monitoring system has been supplemented with
analysis of 1-year and 5-year CDS spreads, allowing
difficulties with certain counterparties to be
anticipated. CDS spreads are used in assessing the
internal ratings of market counterparties according to
a proprietary methodology.
.

Section 3 – Exposure to counterparty credit risks
The Group’s commitments to clients
The Group’s clients include private banking clients, the

Edmond de Rothschild S.A. Group (excluding the Bank
and its subsidiaries) and the investment funds
managed by the Group. Commitments to clients are
shown in the tables below.
Changes in the Group’s commitments to clients
In millions of euros 31/12/2019 31/12/2018
Loans and other financing (on-balance sheet) 877 766

Guarantees 39 38
Unused credit facilities 249 196
Total 1,165 999
Portion of doubtful loans and financing to private

Group commitments to clients amounted to €1,040 banking clients and related provisions
million at the end of 2019, an increase on 2018, while
investment fund overdrafts fell significantly.
Authorised limits are exceeded only in a minority of
Quality of commitments to clients cases. Such situations generally concern less than 5%
of outstandings. They are monitored are resolved
Distribution of commitments rapidly in most cases.
No declaration is made regarding any commitment
with respect to the risk distribution ratio. Portion of loans to private banking clients covered by
Most loans to non-Group entities on the balance sheet a pledged financial instrument account or assigned life
are for less than €3 million. Although the number of insurance policy
loans for more than €3 million is small (around 10%),
their total amount is significant. They now represent Over 95% of loans and financing to private banking
50% of total credit-risk exposure to private banking clients are guaranteed by a pledged securities
clients, chiefly because the Bank’s business is account, an assigned insurance policy or a bank
increasingly focusing on this client segment. 68 clients guarantee (usually from the Group). The securities
(“related beneficiaries”) have outstanding loans of portfolios concerned by the pledges are diversified,
over €3 million. invested mainly in the securities of listed companies,
bonds and fund units, and mostly managed under
Off-balance sheet commitments fell in 2019. They contract.
currently total €13 million for the top ten clients, less
than a third of guarantees for the Private Banking
Division.
Doubtful loans and other financing to private banking clients 334 337
of which amounts written off 334 337
Net - -
Percentage of client loans and other financing 0.00% 0.00%

Once a loan is identified as doubtful, the Bank assesses the counterparty’s solvency and the risks of non-
recovery, and decides whether and in what amount an impairment loss should be recognised.
Impaired and unimpaired loans and other financing

with overdue payments and guarantees received
for these loans
The tables below show the net carrying amount of

unimpaired loans with overdue payments (presented
by period overdue), impaired doubtful loans and
guarantees received to cover these assets. The
amount stated as guarantees received is the value of
the guarantee, which cannot exceed the value of the
asset it covers.
31 December 2019 Payments overdue by Doubtful loans

Associated
(assets written Total
> 90 days > 180 days guarantees
off and outstanding
In thousands of euros ≤ 90 days > 1 year received
commitments
≤ 180 days ≤ 1 year
provisioned)
Financial assets at market value through profit and loss (excluding variable- - - - - - - -
income securities)
Financial assets at market value through equity (excluding variable-income - - - - - - -
securities)
Securities at amortised cost (excluding variable-income securities) - - - - - - -
Loans and receivables due from credit institutions - - - - - - -
Loans and receivables due from clients - - - - - - -
Total doubtful loans and overdue loans net of write-offs - - - - - - -

Financing commitments given - - - - - - -
Financial guarantee commitments given - - - - - - -
Total doubtful off-balance sheet commitments net of provisions - - - - - - -
Total - - - - - - -
31 December 2018 Payments overdue by Doubtful loans

Associated
(assets written Total
> 90 days > 180 days guarantees
off and outstanding
In thousands of euros ≤ 90 days > 1 year received
commitments
≤ 180 days ≤ 1 year
provisioned)
Financial assets at market value through profit and loss (excluding variable- - - - - - - -
income securities)
Available-for-sale financial assets (excluding variable-income securities) - - - - - - -
Loans and receivables due from credit institutions - - - - - - -
Loans and receivables due from clients - - - - - - -
Total doubtful loans and overdue loans net of write-offs - - - - - - -

Financing commitments given - - - - - - -
Financial guarantee commitments given - - - - - - -
Total doubtful off-balance sheet commitments net of provisions - - - - - - -
Total - - - - - - -
Exposure to credit risk
The table below shows the exposure of all the Group’s This exposure does not include the effect of
financial assets to credit risk. This exposure framework netting agreements operative at 31
corresponds to the carrying amount of the financial December 2019 and collateral agreements on forward
assets reported in the balance sheet net of any financial instruments traded over the counter.
impairment, before the effect of unrecorded netting Calculated on the basis of the cash netting allowed
and collateral agreements. under capital adequacy rules, this effect at 31
December 2019 would reduce the Group’s exposure to
credit risk by €5.6 million.

Maximum exposure to credit risk

Financial assets at market value through profit and loss (excluding variable-income securities) 158,752 160,858
Financial assets at market value through equity (excluding variable-income securities) 3,719 4,098
Securities at amortised cost (excluding variable-income securities) 10,384 10,132
Available-for-sale financial assets (excluding variable-income securities)
Loans and receivables due from credit institutions 234,936 59,135
Loans and receivables due from clients 876,774 765,526
Exposure to on-balance-sheet commitments (net of write-offs) 1,284,565 999,749
Financing commitments given 292,492 255,056
Financial guarantee commitments given 51,553 50,323
Provisions for signed commitments - -
Exposure to off-balance sheet commitments (net of write-offs) 344,045 305,379
Total net exposure 1,628,610 1,305,128
Distribution of financial instruments by type of

market price or valuation model used
The breakdown of financial instruments by type of

market price or valuation model is reported in the
table below for each category of instrument defined
above.
31/12/2019 31/12/2018
Model using Model using non- Model using Model using

In thousands of euros Market price observable observable TOTAL Market price observable non-observable TOTAL
parameters parameters parameters parameters
Financial instruments held for trading at market value through profit and
- 12,732 - 12,732 28 9,961 - 9,989
loss
Non-SPPI debt instruments 143,848 - 143,848 148,646 - 148,646
Other financial instruments at fair value through profit and loss 2,165 13,114 - 15,279 2,247 13,788 - 16,035
Total financial assets at fair value through profit and loss 2,165 169,694 - 171,859 2,275 172,395 - 174,670
Debt instruments at fair value through equity - 4 - 4
Investments in subsidiaries and associates at fair value through equity 3,285 434 3,719 3,718 376 4,094
Total financial assets at fair value through equity - 3,285 434 3,719 - 3,722 376 4,098
Financial instruments held for trading at market value through profit and
8,112 4,301 - 12,413 - 14,885 - 14,885
loss
Financial instruments designated as at market value through profit and - 1,120,667 449,035 1,569,702 - 957,623 455,882 1,413,505
loss
Total financial liabilities at fair value through profit and loss 8,112 1,124,968 449,035 1,582,115 - 972,508 455,882 1,428,390
In 2019, the Group issued structured EMTNs valued at €80.9 million, and disposals totalled €305.1 million.
Exposure to counterparty credit risks on capital counterparties whose risks are considered good or
market operations excellent (external rating of BBB or better).
In addition to the risks deriving from proprietary Distribution of gross commitments by bank
trading activities, the exposure to credit risk shown counterparty rating
below includes the issuer risk borne by guaranteed In 2019, gross banking commitments (including off-
investment funds (where the Bank is the guarantor) in balance sheet commitments) fell mainly because of
order to reflect the Bank’s overall exposure to bank the decline in deposits recorded at our
counterparties. correspondents.
At 31 December 2019, 93.7% of credit risks on capital
market transactions concerned bank counterparties
with external credit ratings of A or better. It should
also be noted that almost all exposures are to

Gross risk equivalent
In millions of euros 31/12/2019 31/12/2018 31/12/2017
Rating Amount % Amount % Amount %
AAA 0.5 0.61 1.0 1.18 - 0.0
AA 5.8 7.43 1.9 2.26 0.4 0.4
A 67.1 85.70 69.0 84.00 99.8 88.9
BBB 3.0 3.83 8.6 10.53 9.0 8.0
<BBB 1.9 2.43 1.7 2.03 3.1 2.8
Unrated nm - nm nm nm nm
Methodology: External ratings using the Standard & Poor’s model, commitments measured at replacement value, excluding the effect of netting and collateral agreements.
The breakdown by rating of commitments on bank

counterparties rating shows the excellent quality of
the portfolio, which is focused almost exclusively on
investment-grade counterparties.
Breakdown of gross commitments on sovereign

counterparties by rating
The table below shows the breakdown by credit
quality category of gross outstandings relating to
loans and commitments on sovereign counterparties.
This exposure continued to fall in 2019 because of
natural attrition in formula funds. Exposure amounted
to €2.2 million at 31 December 2019 as opposed to
€21.2 million at 31 December 2018.
Gross risk equivalent

In millions of euros 31/12/2019 31/12/2018 31/12/2017
Rating Amount % Amount % Amount %
AAA - 0.00 - 0.00 4.2 19.8
AA 2.2 100.00 3.9 100.00 17.0 80.2
A - 0.00 - 0.00 - 0.0
BBB - 0.00 - 0.00 - 0.0
<BBB - 0.00 - 0.00 - 0.0
Unrated - 0.00 - 0.00 - 0.0
Methodology: External ratings using the Standard & Poor’s model, commitments measured at replacement value (mark-to-market value + add-on), excluding the effect of netting and collateral agreements.
Virtually all sovereign exposures, exclusively

comprised of debt issued or guaranteed by eurozone
governments, relate to only two counterparties whose
risk is considered to be good or excellent.

Part 3 - absolute value of assets held: this is the maximum
acceptable level in a given currency of the net
Market risk management position in that currency for foreign exchange
transactions;
Market risks are risks of losses due to adverse - sensitivity: sensitivity is defined as the value of the
potential loss resulting from a specific variation in a
developments in prices (primarily due to fluctuations
in interest rates, exchange rates, share prices or given risk factor (e.g. interest rate or exchange
commodity prices), except price movements resulting rate);
- stop-loss: the amount of cumulative losses over a
from the deterioration of an issuer’s financial position.
given period (calculated in days, months or years)
that must not be exceeded unless the position is
Section 1 – Risk-generating activities immediately settled. Stop loss limits are also set by
the treasury and foreign exchange desks;
The Group’s market risks result from: - maximum potential loss: the estimated loss over a
- proprietary trading activities carried out by the one-year horizon resulting from the holding of
Bank’s trading desks, mainly the “euro and foreign structured products. This limit is defined on the
currency treasury” desk and the “foreign exchange” basis of a scenario involving an adverse price
desk; movement, taking into consideration the protection
- ownership of EMTNs or structured funds, either generally associated with this category of financial
under the seed money policy or for market making. assets.
In this case, the Bank’s subsidiary Financière
Boréale is the counterparty for sales by clients that Monitoring compliance with market risk limits
take place before the product’s contractual Traders work on the trading desks and the Bank’s
maturity; financial engineering team must at all times comply
- risk resulting from the investment portfolio, which with all market risk limits.
is monitored on a monthly basis. In addition, the Bank’s Proprietary Risk Control team
(which is part of the Central Risk Department and is
Risks taken by the trading desks are therefore not strictly independent of the front office) verifies
generated by speculative transactions, but mainly compliance with market risk limits for all activities
result from short-term cash investments and client carried out by the trading desks, on the basis of daily
intermediation transactions. reporting. For structuring, compliance with market risk
Exposure to the secondary market is intended to be limits is monitored on a weekly basis.
unwound as soon as it reaches a sufficient level. In the specific case of over-the-counter transactions
with a client, the Central Risk Department verifies that
The creation of structured products activities does not there is perfect matching (type and direction of
generate material market risks. The derivatives used to options, nature of the underlying instrument, exercise
achieve index-linked returns (particularly swaps) are price, maturity) with a market counterparty; option
generally matched strictly with instruments that have contracts are systematically back-to-back, i.e. each
identical features arranged by the fund, or a option transaction with a client is always immediately
reversed in the market by entering into a matching
commitment to pay the interest expected by the client
opposite transaction with a market counterparty.
that invested in the EMTNs. Hedging gains or losses
However, no option transactions were carried out in
may occur during the launch of formula funds but
2019.
these are exceptional and are unlikely to persist.
Loans and other financing commitments to clients do
not generally lead to any exposure to market risks
(interest-rate or exchange-rate risks) since a system of
internal transfers or transactions shifts the exposure to
the trading desks.
In other words, all market risks, whether initially
associated with transactions with clients or arising
from proprietary trading, are centrally managed by the
Bank’s trading desks, or in the specific case of market-
making for structured products, by the financial
engineering team.
Section 2 – Monitoring and assessment methods
Market risk approval principles

Authorised limits for maximum exposure to the various
market risks are set by the Executive Board and
submitted to the Supervisory Board for approval.
These limits are expressed in four ways:

Section 3 – Exposure to market risks
The table below reports details of the capital markets business’ exposure to exchange-rate, interest-rate and
equity risks during the last two years.
2019 2019 2018 2019 2018 2019 2018 2019 2018
In thousands of euros Limits set Year-end Average Minimum Maximum
Exchange-rate risk * 800 172 184 100 85 17 22 188 184

Interest-rate risk ** 3,800 1,688 1,184 2,386 1,277 1,670 959 3,135 1,525
* Sensitivity of operational foreign-exchange positions to an 8% change in exchange rates, excluding correlations.

** Sensitivity of short-term positions to a uniform, parallel 1% change in interest rates, excluding correlations.
The Group considers that its overall exposure to market risks is low, in accordance with the risk appetite of its
holding company and the risk management policy defined and implemented. Most transactions are carried out
on behalf of clients and immediately fully covered with a market counterparty.

Part 4 The policy is primarily managed by central co-
ordination of decisions regarding investments:
Liquidity and financing management - at the level of the trading desks for cash
management;
- at the level of the Finance Department, following
Liquidity risk is the risk that the Group will be unable
to honour its commitments upon maturity or to settle an Executive Board decision, for securities
portfolios.
a position due to the market situation. The risk of
being unable to honour commitments may result from
both transformation of maturities (i.e. borrowing Refinancing of the client loan portfolio is also centrally
co-ordinated by the trading desks through the use of
short-term to lend long-term) and the inability to
internal contracts.
arrange new borrowings on acceptable terms, whether
because of general market conditions or factors
The Asset and Liability Management Committee, which
specific to the Group.
includes a seat for the Central Risk Department,
carries out three to four checks per year to ensure
Section 1 – Liquidity compliance with this policy. Since the interbank
liquidity crisis broke in September 2007, Proprietary
Liquidity, i.e. the immediate availability of investments Risk Control has also issued daily reports on
or the possibility of rapid resale for a reasonable cost, operational liquidity. In addition, Proprietary Risk
for example in response to withdrawals or unexpected Control has developed a liquidity stress scenario in
early redemption requests, is one of the basic order to carry out monthly tests on the balance sheet’s
principles of the Bank’s cash and asset/liability ability to withstand a shock involving, among other
management policy. The Bank is aware that its things, the withdrawal of most client source funds.
prudent, or indeed conservative, approach reduces the The stress-test results are positive since in all
opportunities of optimising returns in situations where circumstances the Bank retains a liquidity credit
a longer maturity would generate additional margins. balance.
The Group is therefore not considered to be

dependent on the market to meet its commitments.
The methodology for measuring liquidity risk has
changed over time to more closely reflect:
- the impact of the external environment
(deterioration in stockmarkets, sharp appreciation
of the US dollar against the euro) on the valuation
of derivative products and therefore on the volume
of collateral payments; and
- the consequence of large-scale redemptions on the
amount of overdrafts granted to mutual funds,
thereby impacting available cash.

Here again, the results confirmed that the balance retention of securities in the portfolio in order to
sheet is highly resilient. There are several indicators support development of the product or product
showing that the Group’s investments are sufficiently range. An additional mechanism for supervising the
liquid: securities portfolio has been defined at Edmond de
- the volume of “available” cash investments Rothschild Group level.
including overnight deposits and short-term
securities was generally above €2 billion in 2019. That resulted in a highly conservative liquidity
The amount at 31 December 2019 was €2.2 billion, coverage ratio (LCR) of 170.0% and a net stable
stable compared with the year-earlier figure; funding ratio (NSFR) of 154.2% at 31 December 2019.
- fixed-term cash investments, in the form of term
loans and negotiable debt securities, are governed Exposure to liquidity risk relating to funds
by strict principles: counterparties must have Liquidity indicators on sensitive funds are monitored
excellent credit quality and are selected under daily by the first-level Risk Management team, and
strict criteria by the Credit Committee, and the monthly by first-level risk committees in the
investment period is limited. There were no such subsidiaries, assisted by the Third-Party Risk Manager
investments at 31 December 2019; in the Central Risk Department. Items consolidated by
- client loans and other financing in the form of all subsidiaries are reported monthly to the Financial
multi-instalment loans amounted to €228.2 million Risk Committee.
at 31 December 2019, slightly higher year-on-year;
- the available-for-sale securities portfolio (excluding In 2019, no gates were used on any fund marketed by
investments in associates) is also subject to limits in the Bank.
terms of amount and purpose. At 31 December
2019, it was made up of €143 million of variable- Section 2 – Limitation of maturity mismatching
income securities (other than money-market funds
used by subsidiaries for cash management
purposes), essentially in the form of units of in- Continuing its prudent approach, the Bank has
house funds acquired under the seed money policy. decided to maintain a structural “reverse” mismatch
The securities portfolio is governed by a system of position in which long maturities (mainly long-term
limits aiming to encourage sufficient diversification capital, redeemable subordinated notes and EMTNs
and the holding of liquid assets. The status of these associated with issuance of structured products)
securities (held for sale or to be retained) is provide generous coverage of short-term investments.
regularly examined by the Asset and Liability The following tables present discounted balances on
Management Committee, which only approves the the balance sheet by contractual maturity:
31 December 2019
From 3 months to 1
In thousands of euros From 1 to 3 months From 1 to 5 years More than 5 years Indeterminate TOTAL
year
Cash, due from central banks and postal accounts 2 229 167 0 0 0 0 2 229 167
Financial assets at fair value through profit and loss 162 718 24 2 161 6 956 0 171 859
Financial assets at fair value through equity 1 943 0 0 1 664 112 3 719
Securities at amortized cost 10 384 0 0 0 0 10 384
Loans and receivables due from credit institutions 234 936 0 0 0 0 234 936
Loans and receivables due from clients 718 819 69 693 56 484 31 778 0 876 774
Revaluation difference on portfolios with interest rate hedging 0 0 0 0 0 0
Financial assets by maturity 3 357 967 69 717 58 645 40 398 112 3 526 839
Central banks and postal accounts 0 0 0 0 0 0
Financial liabilities at fair value through profit and loss 1 053 475 265 028 195 441 68 171 0 1 582 115
Hedging derivatives 0 0 0 0 0 0
Due to credit institutions 93 276 0 -5 000 0 0 88 276
Due to clients 1 498 540 66 006 39 418 0 0 1 603 964
Borrowings represented by securities 0 0 0 0 0 0
Subordinated debt 0 0 -21 000 0 21 000 0
Financial liabilities by maturity 2 645 291 331 034 208 859 68 171 0 3 274 355

31 December 2018
From 3 months to 1
In thousands of euros From 1 to 3 months From 1 to 5 years More than 5 years Indeterminate TOTAL
year
Cash, due from central banks and postal accounts 2 248 217 0 0 0 0 2 248 217
Financial assets at fair value through profit and loss 172 402 0 2 240 0 28 174 670
Available-for-sale financial assets 3 4 0 4 062 29 4 098
Loans and receivables due from credit institutions 9 871 0 0 261 0 10 132
Loans and receivables due from clients 59 135 0 0 0 0 59 135
Revaluation difference on portfolios with interest rate hedging 630 976 84 625 45 580 4 345 0 765 526
Financial assets held to maturity 0 0 0 0 0 0
Financial assets by maturity 3 120 604 84 629 47 820 8 668 57 3 261 778
Central banks and postal accounts 0 0 0 0 0 0
Financial liabilities at fair value through profit and loss 910 418 153 279 298 809 65 884 0 1 428 390
Hedging derivatives 0 0 0 0 0 0
Due to credit institutions 35 011 0 0 0 0 35 011
Due to clients 1 465 860 77 772 41 624 0 0 1 585 256
Borrowings represented by securities 0 0 0 0 0 0
Subordinated debt 0 0 0 0 0 0
Financial liabilities by maturity 2 411 289 231 051 340 433 65 884 0 3 048 657
Assessment and operational monitoring of

transformation is carried out monthly based on
liquidity gaps determined on the basis of the parent
company’s balance sheet. This is an appropriate basis
because the Bank houses the Central Refinancing Unit
for its subsidiaries, whose activities use little liquidity.
The management of structural liquidity risk is
governed by three limits, periodically reviewed by the
ALM Committee. The table below shows details of
liquidity gaps at 31 December 2019.
Period 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years

In millions of euros 1,595 1,277 1,078 956 822 689 629 550
Despite a conservative financial management policy, An emergency funding programme has been
the Bank cannot rule out the possibility of significant developed to deal with any severe liquidity crisis
early redemption requests from its clients. A highly affecting the Bank. It provides three funding options
adverse scenario has therefore been developed, and it to counter a liquidity shortage:
is reported monthly to the Risk Committee and then to - mobilisation of assets that are eligible as collateral
the Asset and Liability Management Committee. for the ECB;
Examination of this scenario indicates that the Bank - use of credit facilities available from correspondent
could easily meet its obligations in the event of the banks;
major constraints, i.e. it could: - disposal of liquid assets that are not eligible as
- immediately repay all time deposits maturing in collateral for the ECB.
under one year; The emergency plan also provides for the
- repay half of long-term source funds from the retail implementation of dedicated, responsive governance
business; arrangements suited to the level of urgency.
- honour its commitments following the depletion of
demand resources (assuming a one-half reduction
in demand deposits).
Section 3 - Diversification of funding sources
Given the Bank’s core businesses, source funds received from interbank sources and clients do not result from an
active policy of seeking resources to finance investments, but instead reflect its asset management activity

(private banking deposits, intragroup deposits, issuance of structured products, repo transactions with funds)
and the promotion of the Bank as a counterparty on the money market.
The Bank nonetheless pays careful attention to diversifying its funding sources, which is one of the foundations
of its liquidity risk management policy. The table below provides an indication of the diversity of its funding
sources at 31 December 2019:
Banks Private clients* Other Total

In millions of euros Amount Number Amount Number Amount Number Amount Number
Cash advances 405.7 4 660.6 NA - - 1,066.3 NA
Time deposits NA NA 202.7 NA NA NA 202.7 NA
Certificates of deposit 98.3 4 - - - - 98.3 4
Structured EMTNs 0 0 406.6 467 - - 406.6 467
(*) For structured product issues, the “Private clients” column includes data relating to the Private Banking Division’s clients. However, it is difficult to estimate accurately the
number of investors who have subscribed to these products via other distribution channels.

Part 5 The relatively small medium/long-term gap mainly
results from pledged client loans. As a result,
Management of overall interest-rate risk sensitivity to a uniform movement of 100 basis points
in the yield curve was limited to €0.44 million at 31
Section 1 - Definition and origin of overall interest- December 2019.
rate risk A stress scenario (a 200 basis-point shift) is also
produced every month, which shows the low
Overall interest-rate risk is the risk of loss on all fixed- convexity of the balance sheet (sensitivity to a 200bp
rate assets, liabilities and off-balance sheet shift was equal to 2.1 times the sensitivity to a 100bp
commitments (except fixed-income securities in the shift at 31 December 2019).
trading portfolio that fall into the category of market When the amounts are significant, the Bank may have
risks), in the event of a parallel uniform shift in yield to protect investments against exchange-rate risk by
curves. borrowing an equivalent amount of the currency. The
The sensitivity as calculated by the Bank is defined as investments reported above were financed from the
the change in net present value of residual fixed-rate outset by currency purchases.
positions in the event of a concurrent uniform shift in
term structures of interest rates. Sensitivity and
changes in sensitivity are calculated using dedicated Part 6
software (RiskConfidence developed by Moody’s
Analytics), based on 1% and 2% changes in interest
Management of overall exchange-rate risk
rates.
The overall exchange-rate risk of the Bank’s
investment portfolio relates to its investments
Section 2 - Exposure to overall interest-rate risk denominated in foreign currencies. It essentially results
from purchases of investment fund units denominated
The overall interest-rate risk to which the Group is in foreign currencies undertaken in connection with
exposed is consistently low. Client loans and other the seed money policy. The amounts concerned are
financing are mainly linked to floating-rate shown in the following table at 31 December 2019:
benchmarks (particularly 3-month Euribor) and Currency Amount
(in thousands of
refinanced internally (with the trading desks) on a CNY 12,435
similar basis. USD 8,155
UAH 520
The Group manages its exposure to overall interest- ARS 20
rate risk in the context of a sensitivity limit reflecting
the net present value of the loss incurred in the event
of a uniform adverse movement of 200 basis points in
the various yield curves.
The table below shows the levels of the overall fixed-

interest rate gap by future period from 31 December
2019, assuming contractual settlement of existing
assets and liabilities and no new lending:
Period 1 3 6 months 1 2 3 4 5
month month year years years year year
In millions of 92 53 63 81 64 60 32 32
A negative sign indicates that there is a surplus of fixed-rate source funds, and
therefore that the balance sheet is exposed to a fall in interest rates.

Investments in
At 31 December 2019 (in euros)
Percentage of
Company or group of companies Share capital Other equity share capital
held
I - Details of investments (with net carrying amount exceeding 1% of Edmond de Rothschild (France)’s share capital)
A - Subsidiaries (at least 50% held)
Financière Boréale 6,040,024 −2,082,053 100.00%
Edmond de Rothschild Asset Management (France) 11,033,769 * 57,327,244 99.99%
Edmond de Rothschild Corporate Finance 61,300 2,286,044 100.00%
Edmond de Rothschild Private Equity (France) 2,700,000 * 5,668,693 100.00%
Edmond de Rothschild Assurances et Conseils (France) 7,034,600 * 7,021,601 100.00%
CFSH Luxembourg 12,000 * 6,524,515 100.00%
Cleaveland 250,000 8,927,839 100.00%
Edmond de Rothschild Boulevard Buildings Ltd *** 19,188,000 *** - 1,548,000 100.00%
B - Associates (10% to 50% held) ,
Edmond de Rothschild (Monaco) 13,900,000 */*** 99,870,000 36.93%
Zhonghai Fund Management Co., Ltd. ** 146,666,700 ** 129,285,809 25.00%
Edmond de Rothschild Private Equity China Investment
18,058,000 −7,133,613 27.97%
S.C.A.
II - AGGREGATE FIGURES
A - Subsidiaries not included in Section I above - - -
B - Associates not included in Section I above
French companies (aggregate) - - -
Foreign companies (aggregate) - - -
* Excluding interim dividend paid in 2018.

** In CNY. €1 = CNY7.8205)
*** Rounded to the nearest thousand.

Investments in
At 31 December 2018 (in euros)
Outstanding loans Guarantees Net income/(loss) in Dividends received by

Carrying amount of Revenue for the last
and advances provided by the the last financial the Bank during the
securities held financial year
made by the Bank Bank year financial year
Gross Net
6,400,630 3,720,936 - 2,487,870 69,948 −254,387 -

69,277,270 69,277,270 - 85,737 210,984,935 21,404,505 12,025,402
11,305,037 11,305,037 - - 21,084,740 −1,661,252 -
2,700,014 2,700,014 - - 5,899,147 55,849 2,970,000
39,978,118 39,978,118 - - 41,405,335 8,231,960 7,034,600
66,840,000 42,433,082 - - - 14,271,874 10,000,000
38,495,255 25,326,000 - - 7,496,936 1,967,953 -
17,546,861 17,546,861 6,564,896 - *** 1,578,000 *** 198,000 -
4,896,449 4,896,449 - 1,776,764 *** 66,492,000 *** 19,726,000 -

31,517,330 12,435,266 - - ** 149,183,384 ** 2,156,831 -
4,374,717 3,102,866 - - - −1,180,798
1,131,461 635,725 87,000 - - - 6,916,523
314,637 314,432 - - - - 1,430

66,314 66,314 - - - - -

Companies
consolidated
by Edmond de Rothschild (France) at 31 December 2019
Banques et Entreprises
d'investissement Sociétés de Portefeuille Sociétés de Gestion
Edmond de Rothschild
36,93% Edmond de Rothschild 100,00% 99,99%
Financière Boréale Asset Management
(Monaco)
(France)
Edmond de Rothschild Edmond de Rothschild

100,00% 62,73% EdR Real Estate (Eastern 99,99%
Securities (Hong Kong) Asset Management (Hong-
Europe) CIE Sarl
Limited Kong) Limited
100,00% 100,00% Edmond de Rothschild

CFSH Luxembourg Sarl
Private Equity (France)
100,00% CFSH Secondary 100,00%
Europportunities
Opportunities SA
Management Sarl

58,33% 68,68%
Europportunities Invest II Europportunities
Sarl Management II Sarl
81,67% 100,00%
Europportunities Invest LCFR UK PEP Limited
Sarl
99,99% 100,00%
Bridge Management Sarl Investment Partners China
Sarl
100,00% EdR Real Estate (Eastern

Europe) Management Sarl
25,00% Zhonghai Fund

Management Co. Ltd
100,00%
Cleaveland
100,00%
SAS EDR IMMO MAGNUM
34,00%
ERAAM SAS
% d'intérêts Groupe
Intégration globale
Mise en équivalence
Sociétés étrangères

Companies
consolidated
by Edmond de Rothschild (France) at 31 December 2019
Sociétés de Conseil Sociétés d'Assurances Divers

100,00% Edmond de Rothschild 100,00% 100,00%
Assurances et Conseils Boulevard Buildings
Corporate Finance
(France) Limited
100,00% Groupement Immobilière

Financière
% d'intérêts Groupe
Intégration globale
Mise en équivalence
Sociétés étrangères

Parent company financial
154 Parent company balance sheet and off-

balance sheet items
155 Parent company income statement
156 Notes to the parent company financial

statements
177 Parent company five year summary

Parent company financial
Parent company balance sheet and off-balance sheet items (in thousands
of euros)
31/12/2019 31/12/2018
Assets
Cash, due from central banks and postal accounts 2,229,166 2,248,216
Treasury notes and similar securities 2.1 - -
Due from credit institutions 2.2 222,280 42,825
Transactions with clients 2.3 884,838 788,005
Bonds and other fixed-income securities 2.4 3,872 3,833
Equities and other variable-income securities 2.5 71,349 68,935
Investments in subsidiaries and associates and other long-term investments 2.6 20,815 24,178
Investments in affiliates 2.7 212,923 225,789
Intangible assets 2.8 21,680 20,791
Property, plant and equipment 2.9 17,011 17,922
Treasury shares 2.10 - -
Other assets 2.11 83,254 102,325
Accruals 2.12 87,675 101,517
Total assets 3,854,863 3,644,336
31/12/2019 31/12/2018

Due to credit institutions 2.14 1,185,142 975,765
Transactions with clients 2.15 1,681,470 1,632,461
Debt securities 2.16 516,939 535,783
Other liabilities 2.11 94,996 99,624
Accruals 2.12 69,447 88,641
Provisions 2.17 6,930 6,228
Subordinated debt 2.18 21,022 21,023
Equity (excluding fund for general banking risks) 2.20 278,917 284,811
. Share capital 83,076 83,076
. Share premiums 98,244 98,244
. Reserves 2.19 32,278 32,278
. Retained earnings (+/-) 71,213 51,206
. Net income for the period (+/-) −5,894 20,007
Total liabilities and equity 3,854,863 3,644,336
31/12/2019 31/12/2018
Off-balance sheet items

Commitments given
Loan commitments 251,793 216,019
Securities-related commitments 27,486 38,776

Commitments received
Securities-related commitments - 3,930
Parent company income statement
In thousands of euros 2019 2018

+ Interest and similar revenues 3.1 43,512 30,061
- Interest and similar expenses 3.2 −68,784 −51,584
+ Revenues from variable-income securities 3.3 59,209 77,751
+ Fee income 3.4 70,906 80,478
- Fee expense 3.4 −17,369 −15,017
+/- Net gain/loss from trading portfolios 3.5 37,741 34,336
+/- Net gain/loss from available-for-sale securities portfolios and similar 3.6 956 −1,968
+ Other banking revenue 3.7 37,081 34,043
- Other banking expenses 3.8 −3,423 −3,916
- General operating expenses 3.9 −135,539 −139,839
- Depreciation, amortisation and impairment of intangible assets and property, plant and equipment −12,101 −11,651
+/- Cost of risk 3.10 3 2
Operating income 12,192 32,696
+/- Net gain/loss from long-term assets 3.11 −18,080 −16,469
Recurring income before tax −5,888 16,227
+/- Extraordinary income/loss 3.12 −42 −713
- Income tax 3.13 36 4,493
Net income −5,894 20,007

Notes to the parent company
Note 1 – Accounting policies and Loans restructured under non-market conditions are
included in a specific subcategory of performing loans
measurement methods until their final due date. Any principal amount or
interest waived, whether due or accrued, is charged to
1.1. General income at the time of the restructuring. If, in view of
market rates prevailing at the time a loan is
The parent company financial statements of Edmond restructured that are less favourable than the initial
de Rothschild (France) are prepared and presented in terms of the loan, or in view of the initial loan rate if
accordance with Regulation 2014-07 of the Autorité not, the restructuring gives rise to a future interest
des Normes Comptables (French accounting difference, the present value of the difference is
standards authority) dated 26 November 2014. recorded as an impairment of the loan at the time of
restructuring and included in the cost of risk, and
1.2. Accounting policies and measurement methods subsequently taken to interest income over the
remaining life of the loan. If the client does not pay on
due dates after the restructured loan has been
Translation of transactions in foreign currencies reclassified as performing, it is immediately
Transactions in foreign currencies are translated into
downgraded.
euros using the official exchange rates as published by
the Banque de France at the year-end.
Edmond de Rothschild (France) defines restructured
Investments in subsidiaries and affiliates denominated
loans as loans to counterparties undergoing financial
in foreign currencies but financed in euros are
difficulties such that the lender is obliged to adjust the
recorded in the balance sheet at the euro equivalent of
initial terms (term, interest rate, etc.) to enable the
their historical foreign-currency cost, using exchange
counterparty to honour its payment obligations.
rates prevailing at the date of acquisition or
subscription. The resulting translation gains or losses
Restructured loans therefore exclude:
are not included in income.
- loans with terms that have been renegotiated for
commercial reasons with counterparties that have
Loans and other financing to clients
no solvency problems;
Edmond de Rothschild (France) applies CRC
- loans whose theoretical repayment schedule is
Regulation 2002-03 of 12 December 2002 as amended
altered through application of an option or clause
by CRC Regulation 2005-03 of 3 November 2005 and
contained in the initial contract (e.g. temporary
recommendation 2002-04 issued by the French
suspension and deferral of due dates);
National Accounting Committee on 28 March 2002
- doubtful loans: on-balance sheet receivables and
relating to the accounting treatment of credit risks by
signed commitments concerning a counterparty
enterprises regulated by the French Banking and
are identified as doubtful outstandings in the
Financial Regulation Committee. Consequently, more
Bank’s accounting information system as soon as
detailed information is provided on counterparty risks
they show a clear credit risk.
and new categories of loans have been created in the
financial statements as follows:
- performing loans: loans and other financing to
clients are shown in the balance sheet at nominal
value;
- overdue loans: payments overdue by three months
or less (six months or less in the case of
mortgages) continue to be reported as performing
loans. Beyond these periods of time, loans – for all
amounts extended to clients – are classified as
doubtful;
- restructured loans: loans restructured as a result of
the client’s financial position are reclassified as
performing loans if restructured under market
conditions prevailing at the time.

Such a risk is clear where it is probable that the Bank - compromised doubtful loans are loans to a
will not recover some or all of the amounts due under counterparty whose solvency is such that, after a
the initial contractual terms of the commitment reasonable period of classification as doubtful
entered into by the counterparty, notwithstanding any loans, no return to the performing loans category is
guarantees or security provided. The loans or other foreseeable. Classification as compromised
items concerned are identified by inclusion in specially doubtful loans takes place when the accelerated
created accounts. payment clause comes into play or, in the case of a
Edmond de Rothschild (France) classifies loans and lease, upon termination of the lease.
commitments with a clear credit risk as doubtful in - loans of an unlimited term become repayable when
each of the following cases: relations are terminated with the counterparty as
notified under the procedures defined in the
- the loan or advance is at least three months in contract. Any loan included in doubtful loans will
arrears (six months for residential mortgages and be automatically classified as a compromised
property lessees and nine months for loans to local doubtful loan after one year in the uncompromised
authorities, to take account of these loans’ specific doubtful loans category.
characteristics). The only exception to this rule is
when specific circumstances indicate that non- Any loan reclassified as performing is immediately
payment is due to causes unrelated to the debtor’s downgraded to the compromised doubtful loans
financial position; category if the client fails to make payments as and
- when the characteristics of a counterparty’s when due.
position in connection with a loan or off-balance Interest ceases to be recognised once the loan is
sheet commitment are such that, independently of transferred to compromised doubtful loans. Disputed
any failure to meet payment dates, it can be loans are loans whose nature or amount is being
concluded that a clear credit risk exists. This is the contested, not the solvency of the counterparty. These
case, for instance, where the Bank is aware that its loans are included in uncompromised doubtful loans.
counterparty’s financial position is poor and there Provisions for clear credit risk: a specific allowance for
is a resulting risk of non-recovery (for example, as impairment is made by a charge against income when
a result of early warning procedures); the probability that all or part of a loan will not be
- if there is litigation between the Bank and its repaid becomes clear. These allowances are deducted
counterparty, for example, over indebtedness from assets.
proceedings, court-ordered administration,
receivership, court-ordered liquidation, personal In accordance with the application-date provisions of
bankruptcy, winding-up and any proceedings CRC (French Accounting Regulations Committee)
before an international court. regulation 2002-03 as amended relating to the
accounting treatment of credit risk by enterprises
Edmond de Rothschild (France) distinguishes between regulated by the French Banking and Financial
two categories of doubtful loans: uncompromised Regulation Committee, Edmond de Rothschild
doubtful loans and compromised doubtful loans: (France) applies the discounted cash flow method
- uncompromised doubtful loans are doubtful loans described in Article 13 of CRC regulation 2002-03
which do not fulfil the criteria for classification as when measuring impairment.
compromised doubtful loans;

Securities portfolio hedges or covered by dedicated financing
The securities portfolio mainly comprises the following resources. The difference between their purchase
securities issued in France and abroad: price and redemption value is amortised over the
- fixed- and variable-income securities; remaining life of the securities.
- French Treasury notes; - portfolio securities, other securities held over the
- other negotiable debt securities; long term and investments in subsidiaries,
- interbank market securities. associates and affiliates are recorded on the date
they are purchased at their purchase price. These
Securities are classified according to the purpose for securities are purchased with the intention of
which they were acquired and, in accordance with holding them for the long term. This category
CRBF Regulation 90-01 as amended by CRC includes all equity interests of 5% or more. Equity
Regulation 2005-01 relating to the recognition of interests of less than 5% are also included if the
securities transactions, Regulation 2008-07 of 3 April Bank is represented in the management bodies or if
2008 relating to the recognition of securities another indirect investment is held via other Group
acquisition costs and Regulation 200817 of 10 companies.
December 2008 relating to transfers of securities other
than held-for-trading and available-for-sale securities Securities are shown under the following balance
and the recognition of stock option plans and bonus sheet headings:
share plans for employees, and with CRC Regulation - treasury notes and similar securities;
2002-03 relating to the determination of credit risk and - bonds and other fixed-income securities;
impairment of fixed-income securities, and the Bank - equities and other variable-income securities;
classifies securities as held-for-trading securities, - associates and other long-term investments;
available-for-sale securities, investment securities, and - investments in affiliates;
investments in subsidiaries and associates. - treasury shares.
- held-for-trading securities are recognised on the
date they are purchased at their purchase price, • Non-current assets
excluding incidental purchase costs and including Intangible assets relate primarily to purchased
accrued interest. Purchase costs are recognised software that is amortised over one to three years.
directly as expenses. Held-for-trading securities are Depreciation of office furniture and equipment,
purchased for with a view to reselling them within a computer hardware, fixtures and fittings, and vehicles
period of not more than six months. is determined on the following basis:
- available-for-sale securities are recognised on the - straight-line method: 10-25%;
date they are purchased at their purchase price. - reducing balance method: 37.5% and 40%.
Purchase costs are included in the purchase price The building owned by Edmond de Rothschild
of available-for-sale securities. They are acquired (France) is being depreciated over 25 years.
with the intention of holding them for more than six
months, in principle for subsequent resale. As part of the convergence between French GAAP
and International Financial Reporting Standards
- investment securities are recognised on the date (IFRSs), CRC Regulation 2004-06 of 23 November
they are purchased at their purchase price. 2004 (applicable from 1 January 2005) eliminated the
Purchase costs are included in the purchase price possibility of recognising deferred expenses or
of investment securities. expenses to be amortised over several periods as
- these are intended to be held for the long term, assets.
and are either subject to specific interest-rate

Deferred expenses must now be recognised: Interest and fee income and expenses
- in assets, if they qualify for definition and Income from interest and bank charges are recorded
recognition as assets or are attributable to the in the income statement on an accrual basis.
initial cost of assets; In general, fees are also recorded on an accrual basis.
- in expenses in all other cases.
Edmond de Rothschild (France) applies CRC Valuation of securities
Regulation 2002-10 of 12 December 2002 as amended Securities held at year-end are valued as follows:
by CRC Regulation 2003-07 of 12 December 2003
relating to depreciation, amortisation and impairment - held-for-trading securities are valued at market
of assets, and Regulation 2004-06 of 23 November price at year-end, with positive or negative
2004 relating to the definition, recognition and valuation differences being taken to income;
measurement of assets. - available-for-sale securities are measured at the
Property, plant and equipment are recognised at cost lower of acquisition cost and market value (based
(purchase price plus direct ancillary expenses). on the average market price in December) or, in
Intangible assets are mainly made up of software, the case of unlisted securities, at their estimated
which is recorded under intangible assets in progress realisable value.
until put into use. - There is no netting between the resulting
Property, plant and equipment and intangible assets unrealised gains and losses, and only unrealised
qualifying for depreciation or amortisation are losses are recognised through impairment of the
depreciated or amortised over their period of use securities portfolio;
within the company. - investment securities on which the interest-rate risk
is hedged are not impaired when their market value
Treasury shares falls below their carrying amount. Unrealised gains
The Bank’s treasury shares are recognised as available- are not recognised;
for-sale securities. - investments in subsidiaries and associates are
The company applies the provisions in French National measured at their value in use. For listed securities,
Accounting Council opinion 2008-17 of 6 November market prices are not the only assessment criterion.
2008 relating to the accounting treatment of stock Unrealised gains are not recognised, and unrealised
option plans and bonus share plans for employees. losses give rise to impairment of the securities
portfolio.
Implementation of those rules has no impact on the
financial statements, as these principles were already Value in use is calculated using multiple criteria,
being applied to the parent company financial including the present value of estimated future cash
statements. flows and a proportion of equity.
Additions to and reversals of provisions and expenses
related to the plans are now presented under Income and expenses relating to forward financial
personnel expenses. instruments
In relation to treasury shares allocated to a plan, a The accounting principles adopted are those defined
liability provision is set aside over the grant period and by the regulations of the French Banking and Finance
adjusted on the basis of the number of shares granted Regulation Committee (CRBF), the instructions of the
to beneficiaries. Prudential Control and Resolution Authority (ACPR)
Treasury shares not allocated to a plan may be and the opinions of the French National Accounting
impaired if their net carrying amount is greater than Council (ANC).
the share price on the balance-sheet date, as for other Those principles are based mainly on the type of
available-for-sale securities. transaction, its purpose, and the type of market on
which it takes place:
parent company financial

statements
- interest-rate swaps; - on a symmetrical basis with the income and
- income and expenses relating to instruments used expenses from the hedged item.
to hedge transactions identified from the outset are - interest-rate futures (notional, Euribor, etc.).
recognised in the income statement

Gains and losses resulting from hedges of transactions S.A. The Edmond de Rothschild S.A. Group had 10
on underlying capital markets are amortised over the subsidiaries in 2018.
remaining maturity of the transactions hedged.
After Edmond de Rothschild S.A. transferred its stake
While a contract is still outstanding, one of two in Edmond de Rothschild (France) to Edmond de
recognition methods is applied: Rothschild (Suisse) on 7 August 2019, the percentage
- transactions on organised or similar markets: the of its Edmond de Rothschild (France) subsidiary and
gains or losses resulting from measurement of its sub-subsidiaries that Edmond de Rothschild S.A.
contracts are taken to income, owns is less than the 95% level required for a tax
- over-the-counter: only unrealised losses are consolidation group. As a result, Edmond de
Rothschild (France), along with its subsidiaries
provisioned,
Edmond de Rothschild Asset Management (France),
- forward-rate agreements (FRAs): income and
Edmond de Rothschild Assurances et Conseils
expenses relating to Fras used for hedging are
(France), Edmond de Rothschild Private Equity
taken to income on a symmetrical basis with the
(France), Edmond de Rothschild Corporate Finance,
income and expenses from the hedged instrument.
Financière Boréale and Cleaveland, which previously
In the case of market transactions, gains and losses
formed part of the tax group, left the tax group
are recorded in the income statement when the headed by Edmond de Rothschild S.A. with retroactive
operation is settled. effect from 1 January 2019. The Edmond de
- Options (foreign-exchange, interest-rate, index and Rothschild S.A. Group had two subsidiaries in 2019.
equity options): premiums are recorded in a
suspense account when the contract is initiated. Accordingly, Edmond de Rothschild (France)’s income
When contracts are settled, in the case of hedging tax was calculated according to the general rules,
transactions, they are taken to income on a without any tax consolidation group, in 2019.
symmetrical basis with the gains and losses on the
hedged items. Mandatory employee profit-sharing
Amounts to be paid under the French mandatory
In the case of market transactions, they are taken to profit-sharing system are provided for on the basis of
income. Outstanding contracts relating to market an agreement formed within Edmond de Rothschild
transactions are remeasured at market value at the (France)’s UES (a legally recognised group of
balance sheet date. integrated companies in France).
Any unrealised gain or loss on contracts traded on Related-party transactions

organised markets is taken to the income statement. Under CRB Regulation 91-01 as amended, Edmond de
For contracts traded over the counter, only unrealised Rothschild (France) presents related-party
losses are provisioned. transactions in Note 9 to the financial statements.
Pensions and other employee benefit liabilities

The French banking industry’s own pension system
was changed by an agreement signed on 13
September 1993 by the French Banking Association
(AFB). All French banks are now members of the
nationwide unfunded multi-employer plans AGIRC and
ARRCO.
The Bank does not apply the preferred method
consisting of setting aside provisions for post-
employment benefits under defined-benefit plans, i.e.
pension plans, supplementary pensions and
termination benefits.
Provision for long-service awards

In accordance with Recommendation 2003-R.01 of 1
April 2003 issued by the French National Accounting
Committee and CRC Regulation 2000-06 relating to
liabilities, a provision was set aside at year-end to
cover probable payments to certain current
employees (expected payments relating to long-
service awards). At 31 December 2019, that provision
totalled €1.189 million.
Income tax
On 1 January 2018, Edmond de Rothschild (France)
and some of its subsidiaries rejoined the tax group
headed by the parent company Edmond de Rothschild

Note 2 – Analysis of balance sheet items
2.1. Treasury notes and similar securities

Available for sale - -
Sub-total - -
Impairment - -
Net total - -
31/12/2019 31/12/2018
In thousands of euros Demand Time deposits Total Demand Time deposits Total
deposits deposits
2.2. Due from credit institutions
Overdrafts 47,274 - 47,274 42,825 - 42,825
Loans - 175,000 175,000 - - -
Securities received under - - - - - -
h t
Sub-total 47,274 175,000 222,274 42,825 - 42,825
Related receivables 1 5 6 - - -
Total 47,275 175,005 222,280 42,825 - 42,825

2.3. Transactions with clients
Other loans and financing
- Loans 229,129 208,013
- Securities received under repurchase agreements - -
Sub-total 229,129 208,013
Overdrafts 655,709 579,701
Unassigned values - 291
Doubtful loans (1) 334 337
Impairment of doubtful loans (1) −334 −337
Total (2) 884,838 788,005
(1)
At 31 December 2019, compromised doubtful loans amounted to €334 thousand and were fully provisioned.
(2)
Including related receivables totalling €1.027 thousand in 2019 and €948 thousand in 2018.
No loans were eligible for central-bank refinancing at No client loans classified as doubtful at 31 December
31 December 2019. 2018 were reclassified as performing loans during
2019.

2.4. Bonds and other fixed-income securities
Available for sale 2,496 2,478
Investment - -
Sub-total 2,496 2,478
Related receivables 1,738 1,699
Impairment −362 −344
Net total 3,872 3,833
No securities changed category during 2019. The “available-for-sale securities” item includes €2.13
The total net carrying amount of unlisted securities million of undated subordinated notes issued by
was €3.87 million. Financière Eurafrique.

31/12/2019 31/12/2018
In thousands of euros Held for trading Available for Total Held for trading Available for Total
l l
2.5. Equities and other variable-income securities
Securities held - 78,116 78,116 28 77,107 77,135
Impairment - −6,767 −6,767 - −8,200 −8,200
Net total - 71,349 71,349 28 68,907 68,935
Unrealised capital gains (1) - 29,447 29,447 - 22,230 22,230
(1)
Difference between cost and market value.
No securities changed category during 2019.

The total net carrying amount of listed securities was
€20 thousand and the total net carrying amount of
unlisted securities was €71,329 thousand.
Within the available-for-sale securities category, fund
units break down as follows:
31/12/2019 31/12/2018
In thousands of euros French Foreign Total French Foreign Total
Capitalisation funds 63,900 7,063 70,963 51,044 17,842 68,886
Other funds - - - - - -
Total 63,900 7,063 70,963 51,044 17,842 68,886
31/12/2019 31/12/2018
In thousands of euros Gross Impairment Net Gross Impairment Net
2.6. Investments in subsidiaries and associates and other long-term investments
Investments in subsidiaries
- Credit institutions 4,964 - 4,964 4,964 - 4,964
- Other companies 36,205 −20,354 15,851 36,154 −16,940 19,214
Sub-total 41,169 −20,354 20,815 41,118 −16,940 24,178
Exchange difference - - - - - -
Total 41,169 −20,354 20,815 41,118 −16,940 24,178
The total net carrying amount of listed securities was Major investments in subsidiaries and affiliates are
€12.50 million and the total net carrying amount of listed in the table “Investments in subsidiaries”.
unlisted securities was €8.31 million.
31/12/2019 31/12/2018
In thousands of euros Gross Impairment Net Gross Impairment Net
2.7. Investments in affiliates
Financial and non-financial companies 255,316 −40,752 214,564 252,077 −26,086 225,991
Exchange difference −1,641 - −1,641 −202 - −202
Total 253,675 −40,752 212,923 251,875 −26,086 225,789
The total net carrying amount of securities relates to

unlisted securities.
The list of affiliates is as follows:

— Edmond de Rothschild Asset Management (France) — Edmond de Rothschild Real Estate (Eastern
— Financière Boréale Europe) CIE SàRL (A and B units)
— Edmond de Rothschild Corporate Finance — CFSH Luxembourg
— Edmond de Rothschild Private Equity Partners — Elivest
(France) — Cleaveland
— Edmond de Rothschild Assurances et Conseils — SAS EDR IMMO MAGNUM
(France)
— Edmond de Rothschild Securities (Hong Kong)
Limited

Acquisitions/tra Disposals/transfer End of
In thousands of euros Start of period Other changes
nsfers in s out period
2.8. Intangible assets

Gross value
Business goodwill (including leasehold right) 3,881 - - 3,881
Other intangible assets 115,269 10,342 125,611
Intangible assets in progress - - - -
Total 119,150 10,342 - - 129,492
Amortisation and impairment
Other intangible assets −98,359 −9,453 - −107,812
Total −98,359 −9,453 - - −107,812
Net carrying amount 20,791 889 - - 21,680
Acquisitions/tr Disposals/transfers Other End of

In thousands of euros Start of period
ansfers in out changes period
2.9. Property, plant and equipment
Gross value
Land 11,434 - - - 11,434
Buildings 21,100 - - - 21,100
Computer hardware 29,150 1,068 - - 30,218
Fixtures, fittings and other property, plant and 38,765 664 - - 39,429
i
Property, t
plant and equipment in progress - - - - -
Total 100,449 1,732 - - 102,181
Depreciation and impairment
Buildings −20,640 −47 - - −20,687
Computer hardware −25,856 −1,723 - - −27,579
Fixtures, fittings and other property, plant and −36,031 −873 - - −36,904
i t
Total −82,527 −2,643 - - −85,170
Net carrying amount 17,922 −911 - - 17,011
2.10. Treasury shares and stock option plans
The Bank no longer holds treasury shares.

At 31 December 2019, there was no longer any stock
option plan for Edmond de Rothschild (France)
employees.
31/12/2019 31/12/2018
In thousands of euros Assets Liabilities Assets Liabilities
2.11 Other assets and liabilities
Option premiums - - - -
Margin calls 44,746 40,570 24,550 20,383
Guarantee deposits 3,550 13,054 11,620 10,590
Other 34,958 41,372 66,155 68,651
Total 83,254 94,996 102,325 99,624

31/12/2019 31/12/2018
In thousands of euros Assets Liabilities Assets Liabilities
2.12 Accruals, assets and liabilities
Items under collection 80 - 65 -
Prepaid expenses 7,605 - 6,438 -
Accrued income 77,654 - 88,827 -
Prepaid income - 2,274 - 2,261
Accrued expenses - 56,505 - 81,156
Other 2,336 10,668 6,187 5,224
Total 87,675 69,447 101,517 88,641
Acquisitions/tran Disposals/transf
In thousands of euros Start of period Other changes End of period
sfers in ers out
2.13. Long-term financial assets
Gross value
Bonds and other fixed-income securities - - - - -
Investments in subsidiaries and associates and other 41,118 51 - - 41,169
lInvestments
t i in affiliates
t t 251,875 1,800 - - 253,675
Total 292,993 1,851 - - 294,844
Impairment
Investments in subsidiaries and associates and other −16,940 −3,414 - - −20,354
lInvestments
t i in affiliates
t t −26,086 −14,677 11 - −40,752
Total −43,026 −18,091 11 - −61,106
Net carrying amount
Bonds and other fixed-income securities - - - - -
Investments in subsidiaries and associates and other 24,178 −3,363 - - 20,815
lInvestments
t i in affiliates
t t 225,789 −12,877 11 - 212,923
Total 249,967 −16,240 11 - 233,738
31/12/2019 31/12/2018
Demand
In thousands of euros Demand deposits Time deposits Total Time deposits Total
deposits
2.14. Due to credit institutions
Deposits 84,765 - 84,765 26,067 - 26,067
Borrowings 3,561 1,092,373 1,095,934 8,943 936,717 945,660
Sub-total 88,326 1,092,373 1,180,699 35,010 936,717 971,727
Related payables 4,443 4,443 - 4,038 4,038
Total 88,326 1,096,816 1,185,142 35,010 940,755 975,765
31/12/2019 31/12/2018
In thousands of euros Demand Time deposits Total Demand Time deposits Total
deposits deposits
2.15 Transactions with clients
Special savings accounts
- Special savings accounts - 111,165 111,165 - 88,690 88,690
- Related payables - - - - - -
Sub-total - 111,165 111,165 - 88,690 88,690
Other payables
- Demand deposits 1,462,340 - 1,462,340 1,378,014 - 1,378,014
- Time deposits - 91,524 91,524 - 160,458 160,458
- Securities delivered under repurchase - - - - - -
t
- Other miscellaneous payables - 16,157 16,157 - 5,138 5,138
- Related payables - 284 284 - 161 161
Sub-total 1,462,340 107,965 1,570,305 1,378,014 165,757 1,543,771
Total 1,462,340 219,130 1,681,470 1,378,014 254,447 1,632,461

2.16 Debt securities
Interbank market instruments and negotiable debt instruments 509,833 535,732
Bonds - -
Sub-total 509,833 535,732
Related payables 7,106 51
Total 516,939 535,783
Start of Reversed Reversed to Other End of

In thousands of euros Additions
period and used income changes period
2.17. Provisions
Provisions for charges
Provisions for long-service benefits 1,138 252 −131 −70 - 1,189
Provisions for possible losses on treasury shares (1) - - - - - -
Provisions for litigation expenses - - - - - -
Other provisions for charges 1,020 755 −378 −17 - 1,380
Sub-total 2,158 1,007 −509 −87 - 2,569
Provisions for contingencies
Provisions for litigation (2) 2,372 634 −308 −76 - 2,622
Other provisions for contingencies 1,698 41 - - 1,739
Sub-total 4,070 675 −308 −76 - 4,361
Total 6,228 1,682 −817 −163 - 6,930
(1) Treasury shares held for stock option plans: (2) Additions to provisions for liabilities are mainly intended to cover
litigation with third parties. Reversals of provisions relate mainly to litigation
At 31 December 2019, there was no longer any stock option plan for Edmond and the private equity business.
de Rothschild (France) employees.
An additional supplementary pension plan set up in The Group had previously opted for the tax on
December 2004 was closed on 31 December 2012, annuities, but at the end of 2011 it chose to change
although its provisions were maintained for options as allowed by the 2011 social security
beneficiaries born before 31 December 1953. financing act for defined-benefit plans consistent with
It applies to a category of senior employees for whom Article L. 137-11. It is now taxed at 12% based on all
the existing basic and complementary pension plans contributions paid into the fund.
provide a significantly lower rate of income In addition to the foregoing tax, an additional 30%
replacement than for other categories of personnel. contribution to be paid by employers from the first
This plan is a defined-benefit plan expressed in terms euro was established on annuities exceeding eight
of the overall final pension (limited in time) or in terms times the annual ceiling and paid from 1 January 2010.
of the top-up pension it provides in addition to the These impacts were measured in 2009.
basic pensions. As measured by the preferred method (not applied by
The unfunded actuarial liability at the rate of 0.79% the Bank) the financial coverage calculation shows
rose from €27,266 thousand to €27,581 thousand at 31 that a provision of €4,808 thousand would have been
December 2019. Taxes and contributions on annuities: set aside in 2019 as opposed to €5,211 thousand in
Article 113 of French act 2003-775 of 21 August 2003 2018.
on pension reform alters the liability to pay social Plan assets were valued at €22,773 thousand in 2019
security, the general social contribution (CSG) and the and the net residual gain relating to past service cost
social debt reimbursement contribution (CRDS), on was zero at 31 December 2019.
employers’ pension-fund contributions. In return for Provisions do not include any amounts for termination
exempting contributions from social security charges, benefits to be paid to retiring employees (€4,419
a tax payable exclusively by the company was thousand in 2019 against €3,668 thousand in 2018).
established. Provisions for banking risks came to €2,854 thousand
The 2010 social security financing act doubled the tax in 2019 (€2,361 thousand in 2018).
levied on annuities exceeding one-third of the annual
social security ceiling, raising it from 8% to 16%.
The 2011 social security financing act subsequently
modified the basis for applying this tax. The allowance
was eliminated and the 16% tax thus applied from the
first euro of the annuity, for all annuities paid after 1
January 2001.

2.18 Subordinated debt
Undated subordinated notes (1) 21,000 21,000
Related payables 22 23
Total 21,022 21,023
(1) In June 2007, the Bank issued €50 million of undated - non-payment of interest in the event of insufficient
super-subordinated notes. In the event of the issuer’s capital related to noncompliance with prudential
liquidation, holders of these notes will be paid only after capital adequacy ratios or a deterioration in the Bank’s
other creditors but before holders of participating loans financial position;
or participating securities. - reduction of accrued interest due and payable and
After discussions with one of the noteholders, Edmond de then of the nominal value of the notes if the Bank has
Rothschild (France) made an offer to repurchase part of not taken action to remedy the capital situation within
the notes with a nominal amount of €29 million, at a a specific period.
discount of 7.5%.
After obtaining the authorisation of the ACP on 12 July
2013, €29 million of notes were repurchased and
cancelled in August 2013. The main financial characteristics of these notes are as
follows:
The undated super-subordinated notes carry financial
covenants:
Optional early redemption date Interest step-up from the

Issue date Rate until early redemption Rate after early redemption
(call option) optional early redemption date
June 2007 June 2017 then quarterly 6.36% (*) Euribor + 2.65% + 100 basis points
(*) Rate set by reference to the 10-year swap rate in euros on 4 June 2007: 4.71% + 1.65%.

2.19. Reserves
Statutory reserve 8,308 8,308
Regulated reserves 152 152
Other reserves 23,818 23,818
Total 32,278 32,278
In thousands of euros Share capital Share premiums Reserves Retained earnings Income Total
2.20. Changes in equity

Position at start of period 83,076 98,244 32,278 51,206 20,007 284,811
Capital increase - - - - - -
Net income for the period (before - - - - −20,007 −20,007
i ti )
Dividends - - - 20,007 - 20,007
Other movements - - - - −5,894 −5,894
Position at end of period 83,076 98,244 32,278 71,213 −5,894 278,917

At 31 December 2019, the share capital amounted to €83,075,820, consisting of 5,538,388 shares with nominal
value of €15 each, and was held as follows:
Number of shares % interest

EDMOND DE ROTHSCHILD (SUISSE) S.A. 5,538,328 100.00%
Other natural persons 60 0.00%
Total 5,538,388 100.00%
Net income available for distribution (in euros):
Net income for 2019 −5,894,022.48

Retained earnings at end of period 71,213,513.49
Appropriation to the statutory reserve -
Net income available for distribution 65,319,491.01
The net loss for 2019 as stated in the above table will be charged against retained earnings, the balance of which
will then be €65,319,491.01 (subject to the related draft resolution being approved in the Annual General Meeting
of 6 May 2020).

2.21 Transactions with affiliates
Assets
Transactions with clients (excluding related receivables) 7,721 24,383
Liabilities
Transactions with clients (excluding related liabilities) 58,475 36,742
< 3 months > 3 months > 1 year > 5 years Total

In thousands of euros < 1 year < 5 years
2.22 Analysis of certain assets and liabilities
Assets
Due from credit institutions 222,280 - 222,280
Transactions with clients 721,358 69,821 61,870 31,789 884,838
Bonds and other fixed-income securities - 3,872 3,872
Total 943,638 69,821 61,870 35,661 1,110,990
Liabilities
Due to credit institutions 1,059,407 111,356 - 14,379 1,185,142
Transactions with clients 1,568,655 75,196 37,619 1,681,470
Debt securities 65,168 214,932 183,432 53,407 516,939
- Interbank market instruments and 65,168 214,932 183,432 53,407 516,939
ti bl d bt i t
- Bonds t - - - - -
Total 2,693,230 401,484 221,051 67,786 3,383,551

Note 3 – Analysis of income statement items

3.1. Interest and similar revenues
On transactions with credit institutions 33,753 5,610
On transactions with clients 9,700 9,426
On bonds and other fixed-income securities 1 14,536
Other interest and similar revenues 58 488
Total 43,512 30,061

3.2. Interest and similar expenses
On transactions with credit institutions −33,820 −45,255
On transactions with clients −689 −306
On bonds and other fixed-income securities −33,863 −5,352
Other interest and similar expenses −412 −671
Total −68,784 −51,584

3.3. Revenues from variable-income securities
Equities and other variable-income securities 20,261 3,506
Investments in subsidiaries and associates and other long-term investments 1 3,073
Investments in affiliates 38,947 71,172
Total 59,209 77,751
2019 2018
In thousands of euros Gains Expense Income Expenses
3.4. Fees
Cash and interbank transactions - −9 - −15
Transactions with clients 33 - 48 -
Securities transactions - - - -
Foreign exchange transactions 29 - 39 -
Off-balance sheet transactions - -
- Securities transactions 412 - 184 -
– Transactions in forward financial instruments 2,545 −1,486 1,977 −1,221
Financial services 67,887 −15,874 78,230 −13,781
Additions to/reversals of provisions - - - -
Total 70,906 −17,369 80,478 −15,017
2019 2018
In thousands of euros Gains Losses Balance Gains Losses Balance
3.5 Gains/losses on transactions in trading portfolios
Held-for-trading securities 524 −1 523 612 −4 608
Foreign exchange transactions 460,866 −423,648 37,218 451,196 −417,468 33,728
Forward financial instruments - - - - - -
Additions to/reversals of provisions - - - - - -
Total 461,390 −423,649 37,741 451,808 −417,472 34,336

2019 2018
In thousands of euros Gains Losses Balance Gains Losses Balance
3.6. Gains/losses on transactions in available-for-sale assets and similar
Losses on disposal - −507 −507 - - -
Gains on disposal 66 - 66 - - -
Additions to/reversals of impairment 2,141 −726 1,415 489 −2,457 −1,968
Additions to/reversals of provisions −18 −18 - - -
Total 2,207 −1,251 956 489 −2,457 −1,968

3.7. Other banking revenues
Expenses transferred to other companies 9,721 10,139
Other ancillary income 27,362 22,980
Miscellaneous 488 432
Additions to/reversals of provisions −490 492
Total 37,081 34,043

3.8. Other banking expenses
Revenues transferred to other companies −2,866 −3,824
Miscellaneous −57 −83
Additions to/reversals of provisions −500 −9
Total −3,423 −3,916

3.9. General operating expenses
Wages and salaries −48,080 −51,400
Social security expenses −21,630 −24,241
Employee incentive plans −255 −15
Mandatory employee profit-sharing −1,578 −3,262
Payroll taxes −5,260 −4,668
Additions to provisions for personnel expenses −1,031 −1,842
Reversals of provisions for personnel expenses 822 4,514
Sub-total - Personnel expenses −77,012 −80,914
Taxes other than income tax −2,101 −2,803
Rental expenses −10,945 −11,281
External services −44,465 −43,697
Travel expenses −1,016 −1,144
Miscellaneous operating expenses - -
Additions to provisions for administrative expenses - -
Reversals of provisions for administrative expenses - -
Sub-total - Administrative expenses −58,527 −58,925
Total −135,539 −139,839

3.10 Cost of risk
Impairment of doubtful debts - -
Additions to provisions - -
Net losses on receivables written off - -
Reversals of impairment on doubtful debts now performing 3 2
Reversals of provisions - -
Amounts recovered on receivables formerly written off - -
Total 3 2

3.11. Gains and losses on long-term assets
Gains on sales of intangible assets and property, plant and equipment - -
Gains on sales of long-term financial assets - 861
Losses on sales of intangible assets and property, plant and equipment - -
Losses on sales of long-term financial assets - -
Additions to impairment of long-term financial assets −18,091 −17,330
Reversals of impairment of long-term financial assets 11 -
Reversals of contingency and loss provisions - -
Total −18,080 −16,469
3.12. Non-recurring items
Non-recurring items produced a loss of €42 thousand in 2019.
3.13. Income tax
Calculated on the basis of the tax consolidation group,

there was an income tax credit of €36 thousand in
2019 versus €4,493 thousand in 2018.
The reduction was because of a loss in 2019.

Note 4 – Additional information on banking activities
Analysis of net banking income
The analysis of net banking income by major business presentation of the income statement, can be broadly
segment, which is extracted from the accounting summarised as follows:

- Asset management 59,095 64,527
- Interest-earning operations 9,189 9,173
- Capital markets transactions, securities portfolio and other 91,074 110,297
- Corporate advisory services 471 187
Net banking income amounted to €159.8 million in - Asset management fee income fell by €5.4
2019, down 13.2% relative to 2018 (€184.2 million). million, from €64.5 million in 2018 to €59.1
million in 2019. The decrease was caused by
The €24.3 million decrease was due to the following lower distribution revenue and lower
factors: transaction-related fees (front-end charges
and transfer commissions). This was due to
- revenue from the securities portfolio and the application of the MIFID II directive, along
capital markets transactions fell €19.2 million with lower client appetite for risky products,
compared with 2018. The decline was mainly which caused lower margins and transaction
caused by the lower amount of dividends volumes.
received in 2019 (down €15.7 million relative
to 2018),

Note 5 – Off-balance sheet items

5.1. Transactions with affiliates
Commitments given
Loan commitments 2,488 20,321
Guarantee commitments 86 86
5.2. Liquidity commitments
The beneficiaries of bonus share plans and stock de Rothschild S.A. would systematically be substituted
option plans granted by Edmond de Rothschild S.A. or for the Bank in the performance of these contracts,
other Group companies have entered into liquidity with Edmond de Rothschild S.A. reserving the right to
agreements with the issuing entities. Under the terms use a third-party substitute.
of those agreements, the issuing companies undertake
to purchase and the beneficiaries to sell the shares
issued or allocated under these plans, subject to
certain conditions.
Since December 2005, it has been agreed between
Edmond de Rothschild SA and the Bank that Edmond
5.3. Transactions in forward financial instruments
Transactions in interest-rate instruments are Commitments related to forward financial instruments

concluded for micro-hedging purposes. Foreign break down as follows (nominal value of contracts):
exchange options may be entered into as part of the
management of a specialised portfolio, or are
matched.
At 31 December 2019 Micro-hedging Trading portfolio Total

In thousands of euros Purchases Sales Purchases Sales Purchases Sales
Organised or similar markets
Futures contracts
Currency swaps (1) 2,096,276 1,971,052 - - 2,096,276 1,971,052
Total 2,096,276 1,971,052 - - 2,096,276 1,971,052
Over the counter
Futures contracts
Interest-rate and index swaps (1) 261,618 975,495 - - 261,618 975,495
Sub-total 261,618 975,495 - - 261,618 975,495
Interest-rate and index
options - - - - - -
Sub-total
Total 261,618 975,495 - - 261,618 975,495
(1) including €2.000 million with affiliates.

At 31 December 2018 Micro-hedging Trading portfolio Total
Futures contracts
Currency swaps (1) 2,239,119 2,099,670 - - 2,239,119 2,099,670
Total 2,239,119 2,099,670 - - 2,239,119 2,099,670
Over the counter - - - - - -
Futures contracts - - - - - -
Interest-rate and index swaps (1) 1,283,910 87,264 - - 1,283,910 87,264
Sub-total 1,283,910 87,264 - - 1,283,910 87,264
Interest-rate and index - - - - - -
options - - - - - -
Sub-total - - - - - -
Total 1,283,910 87,264 - - 1,283,910 87,264
(1) including €2.000 million with affiliates.
The residual values of the above commitments break down as follows:
At 31 December 2019 Less than 1 year 1 to 5 years More than 5 years

Organised or similar markets 1,888,278 1,892,794 207,998 78,258 -
Over the counter 58,000 969,495 71,083 6,000 132,535
At 31 December 2018 Less than 1 year 1 to 5 years More than 5 years

Organised or similar markets 1,982,892 1,970,631 256,227 129,039 - -
Over the counter 1,085,444 19,364 139,694 63,900 58,772 4,000
The Bank’s exposure to market risks related to transactions in financial instruments is summarised as follows (in
thousands of euros):
Type of risk Type of transaction Assumptions Sensitivity
31/12/2019 31/12/2018
1% adverse movement in the yield curve
Short-term transactions in euros 423 1121
Interest-rate risk
Short-term transactions in foreign 1% adverse movement in the yield curve
98 63
currencies
Exchange-rate Spot and forward foreign exchange 8% adverse movement in exchange rates
172 28
risk transactions
Positive value Negative value

In thousands of euros 31/12/2019 31/12/2018 31/12/2019 31/12/2018
5.4. Fair value of transactions in forward financial instruments
Futures contracts
Currency swaps 14,623 22,265 −5,271 −16,315
Over the counter
Futures contracts
Interest-rate and index swaps 6,081 6,121 −13,472 −15,409
The fair value of forward financial instruments is determined with reference to their market value, calculated
daily as part of counterparty risk measurements.

Note 6 – Additional information on counterparty risks relating to
derivatives
6.1. Nature and method of the calculation
Risk equivalents and the effect of netting agreements add-on is calculated using the formula prescribed by
are calculated in accordance with the principles Instruction 96-06, as follows:
established by Regulations 91-05 and 95-02 of the - net add-on = 0.4 x gross add-on + 0.6 x NGR x
French Banking and Financial Regulation Committee, gross add-on, where NGR represents the ratio
and by Instruction 96-06 of the French Banking between net replacement cost and gross replacement
Commission. cost, for all transactions entered into under legally
The positive replacement value of risk equivalents valid netting agreements.
represents the market value of the contracts before Weighting factors used for each type of counterparty
taking account of netting agreements and guarantees are consistent with those prescribed by Regulation 91-
received. 05: 20% for banks and 50% for clients.
The gross add-on is based on the notional amount of

the contracts multiplied by a weighting factor. The net
Gross risk-weighted assets Net risk-weighted assets

6.2. Breakdown of weighted risk equivalents by type of counterparty
Banks 9,892 10,837 4,482 5,825
Clients 1,691 6,145 1,465 2,803
Effect of netting Effect of collateralisation

6.3. Effect of netting on total weighted risk equivalents
Banks 3,783 6,573 1,627 −1,562
Clients 226 3,342 - -

Note 7 – Average number of employees
31/12/2019 31/12/2018
Operatives 83 96
Executives and senior management 307 300
Unclassified 83 86
Total 473 482
Pursuant to the provisions of the French Commercial The number of workers employed part-time or for less
Code, the Group publishes a breakdown by category than the full year is taken into account in proportion to
of its average workforce during the period. the average time worked as compared to the full-time
hours laid down by agreement or statute.
Note 8 – Additional information
8.1. The financial statements of Edmond de Rothschild

(France) are included in the consolidated financial
statements of Edmond de Rothschild S.A. using the
full consolidation method.
8.2. Post-balance sheet events
The Covid-19 pandemic is likely to have a significant

negative impact on the global economy, which will be
more serious if the pandemic is not brought under
control quickly. The situation is causing a pronounced
decrease in activity, caused by the impact of
containment measures on consumer spending and a
mistrust of economic agents, along with production
difficulties, disruption to supply chains in certain
sectors and a downturn in investment.
This is set to cause a significant slowdown in growth

and even technical recessions in several countries,
which is reflected in the substantial declines in
financial markets and increased volatility. These
consequences are likely to affect the activities of bank
counterparties and banks themselves.
As regards Edmond de Rothschild France, the main

immediate impact results from the sensitivity, in
valuation terms, of its own assets and assets under
management to the decline in financial markets
(equities, fixed income etc.). The negative impact on
the Bank's revenues, earnings and financial position is
impossible to measure at this stage.
The parent company financial statements contained in

this document were finalised by the Executive Board
on 3 March 2020 and will be presented for approval at
the Annual General Meeting of 6 May 2020.

Note 9 – Transactions with related parties
9.1. Transactions with related natural persons and others

Loans and overdrafts 19,028 19,045
Assets 19,028 19,045

Demand deposits 1,064 2,284

Net banking income 46 115
Gross operating income 46 115
9.2. Transactions with related companies
• Transactions related to the income statement
31/12/2019
Relationship with the related
In thousands of euros Name Revenues Expenses
party
- Revenues/expenses on transactions with credit institutions EDRAM Subsidiary - -

- Financial services EDRAM Subsidiary - -
+ Gains on sales of long-term financial assets EDRAM Subsidiary - -
31/12/2018
Relationship with Reven
In thousands of euros Name Expenses
the related party ues
- Expenses on transactions with credit institutions EDRAM Subsidiary - -
- Financial services EDRAM Subsidiary - −14
+ Gains on sales of long-term financial assets EDRAM Subsidiary - -
• Transactions in forward financial instruments
In thousands of euros Amount

Total return index swap EDRAM Subsidiary -

Parent company five year
summary
2015 2016 2017 2018 2019
Financial position at end of period
Share capital 83,075,820 83,075,820 83,075,820 83,075,820 83,075,820
Number of shares in issue 5,538,388 5,538,388 5,538,388 5,538,388 5,538,388
Number of convertible bonds - - - - -
Equity (¹) * 247,823,000 254,056,000 265,156,000 264,804,000 284,811,000
Long-term funds (¹) * 268,823,000 275,056,000 286,156,000 285,804,000 305,811,000
Total liabilities and equity * 2,524,048,000 2,713,132,000 3,424,862,000 3,644,336,000 3,854,863,000
Results of operations for the period

Revenues excluding VAT 828,081,237 612,547,436 540,578,183 670,683,166 581,216,316
Income before tax, depreciation, amortisation and 34,124,730 20,085,747 19,891,140 42,852,972 23,535,467
Income tax expense −13,430,948 −10,684,248 −19,757,739 −4,492,843 −36,204
Income after tax, depreciation, amortisation and 30,713,023 24,391,581 18,700,508 20,007,436 −5,894,022
Total dividends paid 24,479,675 13,292,131 19,052,055 - 0
Per-share data
Income after tax but before depreciation, amortisation 8.59 5.56 7.16 8.55 4.26
Income after tax, depreciation, amortisation and 5.55 4.40 3.38 3.61 −1.06
Dividend ** 4.42 2.40 3.44 - -
Employees
Number of employees at end of period 537 507 511 483 474
Total gross payroll 48,440,745 46,557,739 44,734,108 43,136,381 41,161,182
Social security contributions and employee benefits 25,146,697 23,540,011 24,869,906 24,240,623 21,630,228
Mandatory employee profit-sharing 2,396,097 878,803 2,428,568 3,262,173 1,577,989
(1) Excluding net income for the year.

* Rounded to the nearest thousand euros.
** Subject to the decision of the Annual General Meeting held on 6 May 2020.

Statutory
Auditors’ reports
Year ended 31 December 2019
Report on the consolidated financial statements Independence
We conducted our audit engagement in compliance

with the independence rules applicable to us, for the
To the Shareholders, period from 1 January 2019 to the date of our report
and in particular we did not provide any non-audit
services prohibited by article 5(1) of
Opinion Regulation (EU) No 537/2014 or the French Code of
Ethics (Code de déontologie) for Statutory Auditors.
In compliance with the engagement entrusted to us by
your Annual General Meeting, we have audited the Emphasis of matter
accompanying consolidated financial statements of
Edmond de Rothschild (France) for the year ended 31 We draw attention to the notes in the appendix
December 2019. These financial statements were presenting the accounting change resulting from the
approved by the Executive Board on march 3, 2020 first application of IFRS 16 "Leases" and its impact on
based on information available at that date and in the the consolidated financial statements. (Note 1.2
evolving context of the Covid-19 health crisis. "Compliance with accounting standards" and Note 2
"Valuation accounting policies and explanatory
In our opinion, the consolidated financial statements notes".
give a true and fair view of the assets and liabilities
and of the financial position of the Group as at 31 Our opinion is not modified in respect of this matter.
December 2019 and of the results of its operations for
the year then ended in accordance with International Justification of our assessments – Key audit
Financial Reporting Standards as adopted by the matters
European Union.
In accordance with the requirements of articles L.823-
The audit opinion expressed above is consistent with 9 and R.823-7 of the French Commercial Code (Code
our report to the Audit Committee. de commerce) relating to the justification of our
assessments, we inform you of the key audit matters
Basis of our opinion relating to the risks of material misstatement that, in
our professional judgement, were of most significance
Audit framework in our audit of the consolidated financial statements,
as well as how we addressed those risks.
These matters were addressed in the context of our
We conducted our audit in accordance with
professional standards applicable in France. We audit of the consolidated financial statements as a
believe that the audit evidence we have obtained is whole, approved in the context described above, and
sufficient and appropriate to provide a basis for our in forming our opinion thereon, and we do not provide
opinion. a separate opinion on specific items of the
consolidated financial statements.
Our responsibilities under these standards are further
described in the “Responsibilities of the Statutory
Auditors relating to the audit of the consolidated
financial statements” section of our report.

Key audit matter
Measurement of goodwill and equity method investments
Description of risk How our audit addressed this risk
Goodwill, which corresponds to the difference We examined the methodology used by the
between the acquisition price and the fair value Group to measure a potential need for
of the assets and liabilities of the acquired impairment of goodwill.
entities, is detailed in Note 3.12 to the
consolidated financial statements and Our work consisted primarily in the following :
amounted to 74.3 mn€ as at December 31,
 A critical assessment of the business
2019.
plans used to establish the projected
cash flows;
Equity method investments amounted to 67.9
 A critical assessment of the
M€ and are detailed in Note 3.9 to the assumptions used by management to
consolidated financial statements. determine the discount rates and the
perpetuity growth rates used in
Goodwill is allocated to cash-generating units discounted cash flow calculations, if
(CGUs) and tested for impairment at least once necessary by comparing them with
a year and whenever there is an indication that external sources
it may be impaired.  In addition to the result of the
quantitative approaches, we reviewed
of the documentation prepared by the
Impairment occurs if the recoverable amount of
management regarding the qualitative
an asset falls below its carrying amount, in
elements which can come, if necessary
which case an impairment charge is recognised  Finally, the verification that the notes to
against goodwill. the financial statements provided
appropriate information.
We deemed the measurement of goodwill and
Equity method investments to be a key audit
matter owing to:
 Its material value in the consolidated

balance sheet;
 The degree of judgement required from
management in terms of selecting the
impairment test criteria; and
 The material impact on the Group’s
results of an error of judgement or
change in estimate.

Specific verifications implementing the internal control procedures it deems
necessary for the preparation of consolidated financial
As required by law and in accordance with statements free of material misstatement, whether due
professional standards applicable in France, we have to fraud or error.
also verified the information pertaining to the Group
presented in the Executive Board’s management In preparing the consolidated financial statements,
report approved on March 3, 2020. Management has management is responsible for assessing the
confirmed that events that have occurred and company's ability to continue as a going concern,
information that has come to light relating to the disclosing, as applicable, matters related to going
Covid-19 crisis since the financial statements were concern and using the going concern basis of
closed will be reported to the Annual General Meeting accounting, unless it expects to liquidate the company
called to approve these financial statements or to cease operations.
We have no matters to report as to its fair The Audit Committee is responsible for monitoring the
presentation and its consistency with the consolidated financial reporting process and the effectiveness of
financial statements. internal control and risk management systems, as well
as, where applicable, any internal audit systems,
We attest that the consolidated non-financial relating to accounting and financial reporting
performance reporting required by Article L.225-102-1 procedures.
of the French Commercial Code is included in the
management report. We add that, in accordance with The consolidated financial statements were approved
the provisions of Article L.823-10 of this Code, the by the Executive Board.
information contained in this statement has not been
the subject of our verifications of fairness or Responsibilities of the Statutory Auditors as
consistency with the consolidated financial statements regards auditing the consolidated financial
and must be certified by an independent third party. statements
Audit objective and procedure

Report on other legal and regulatory requirements
Our role is to issue a report on the consolidated
Appointment of the Statutory Auditors financial statements. Our objective is to obtain
reasonable assurance about whether the consolidated
We were appointed Statutory Auditors of Edmond de financial statements as a whole are free of material
Rothschild (France) by the Annual General Meeting of misstatement. Reasonable assurance is a high level of
25 May 1999. assurance, but is not a guarantee that an audit
conducted in accordance with professional standards
As at 31 December 2019, both firms were in the will always detect a material misstatement when it
twenty first year of total uninterrupted engagement. exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the
aggregate, they could reasonably be expected to
Responsibilities of management and those charged influence the economic decisions of users taken on the
with governance for the consolidated financial basis of these consolidated financial statements.
statements
As specified in article L.823-10-1 of the French
Management is responsible for preparing consolidated Commercial Code, our audit does not include
financial statements presenting a true and fair view in assurance on the viability or quality of management of
accordance with International Financial Reporting the company.
Standards as adopted by the European Union and for

As part of an audit conducted in accordance with events or conditions that may cast significant
professional standards applicable in France, the doubt on the company’s ability to continue as a
Statutory Auditors exercise professional judgement going concern. This assessment is based on the
throughout the audit. audit evidence obtained up to the date of the
audit report. However, future events or
They also: conditions may cause the company to cease to
 Identify and assess the risks of material continue as a going concern. If the Statutory
misstatement of the consolidated financial Auditors conclude that a material uncertainty
statements, whether due to fraud or error, exists, they are required to draw attention in
design and perform audit procedures the audit report to the related disclosures in
responsive to those risks, and obtain audit the consolidated financial statements or, if such
evidence considered to be sufficient and disclosures are not provided or are inadequate,
appropriate to provide a basis for their opinion. to issue a qualified opinion or a disclaimer of
The risk of not detecting a material opinion;
misstatement resulting from fraud is higher
than for one resulting from error, as fraud may  Evaluate the overall presentation of the
involve collusion, forgery, intentional consolidated financial statements and assess
omissions, misrepresentations, or the override whether these statements represent the
of internal control; underlying transactions and events in a manner
that achieves fair presentation;
 Obtain an understanding of internal control
relevant to the audit in order to design audit  Obtain sufficient appropriate audit evidence
procedures that are appropriate in the regarding the financial information of the
circumstances, but not for the purpose of entities or business activities within the group
expressing an opinion on the effectiveness of to express an opinion on the consolidated
the internal control; financial statements. The Statutory Auditors
are responsible for the direction, supervision
 Evaluate the appropriateness of accounting and performance of the audit of the
policies used and the reasonableness of consolidated financial statements and for the
accounting estimates made by management opinion expressed thereon.
and the related disclosures in the notes to the
consolidated financial statements;
 Assess the appropriateness of management’s

use of the going concern basis of accounting
and, based on the audit evidence obtained,
whether a material uncertainty exists related to

Reporting to the audit committee
We also provide the Audit Committee with the
We submit a report to the Audit Committee which declaration provided for in article 6 of Regulation (EU)
includes in particular a description of the scope of the No 537/2014, confirming our independence within the
audit and the audit programme implemented, as well meaning of the rules applicable in France, as defined in
as the results of our audit. We also report any particular in articles L.822-10 to L.822-14 of the French
significant deficiencies in internal control that we have Commercial Code and in the French Code of Ethics for
identified regarding the accounting and financial Statutory Auditors. Where appropriate, we discuss any
reporting procedures. risks to our independence and the related safeguard
measures with the Audit Committee.
Our report to the Audit Committee includes the risks
of material misstatement that, in our professional Neuilly-sur-Seine and Paris, 21 April 2020
judgement, were of most significance in the audit of
the consolidated financial statements and which
constitute the key audit matters that we are required The Statutory Auditors
to describe in this report.
PricewaterhouseCoopers Audit………..Philippe Chevalier
Cabinet Didier Kling & Associés………….Solange Aïache

Report on the parent company financial Independence
statements
We conducted our audit engagement in compliance
with the independence rules applicable to us for the
Opinion period from 1 January 2019 to the date of our report
and in particular we did not provide any non-audit
In compliance with the engagement entrusted to us by services prohibited by article 5(1) of Regulation (EU)
your Annual General Meeting, we have audited the No 537/2014 or the French Code of Ethics (Code de
accompanying financial statements of Edmond de déontologie) for Statutory Auditors.
Rothschild (France) for the year ended 31 December
2019. These financial statements were approved by
the Executive Board on march 3, 2020 based on
Justification of our assessments – Key audit
information available at that date and in the evolving
matters
context of the Covid-19 health crisis.
In our opinion, the financial statements give a true and

In accordance with the requirements of articles L.823-
fair view of the assets and liabilities and of the
financial position of the Company as at 31 December 9 and R.823-7 of the French Commercial Code (Code
2019 and of the results of its operations for the year de commerce) relating to the justification of our
then ended in accordance with French accounting assessments, we inform you of the key audit matters
principles. relating to the risks of material misstatement that, in
our professional judgement, were of most significance
The audit opinion expressed above is consistent with
in our audit of the financial statements, as well as how
our report to the Audit Committee. we addressed those risks.
Basis of our opinion
Audit framework
These matters were addressed in the context of our
We conducted our audit in accordance with audit of the financial statements as a whole, approved
professional standards applicable in France. We in the context described above and in forming our
believe that the audit evidence we have obtained is opinion thereon, and we do not provide a separate
sufficient and appropriate to provide a basis for our opinion on specific items of the financial statements.
opinion.
.
Our responsibilities under these standards are further
described in the “Responsibilities of the Statutory
Auditors relating to the audit of the financial
statements” section of our report.

Key audit matter
Measurement of investments in subsidiaries, other long-term investments and associates
Description of risk How our audit addressed this risk

We assessed the documentation outlining the
Investments in subsidiaries and associates choices made by management among the
represent one of the largest assets on the various methods for measuring value in use.
balance sheet (€233.7m at 31 December 2019
compared to €250.0m at 31 December 2018) Subsequently:
and a material portion of their measurement is
based on estimates. For valuations based on historical data:
As stated in Note 1 to the financial statements  We verified that the equity values used
“Accounting principles and measurement were consistent with the audited
financial statements of the entities
methods”, these investments are measured on
valued.
the basis of their value in use. For valuations based on discounted projected
cash flows:
For listed securities, the share price is not the
only criteria used for measurement purposes.  We verified that the cash flows had
been reviewed by the management
Estimating the value in use of these securities teams of the entities valued;
requires management to exercise judgement  We assessed the relevance of the main
when selecting the criteria to be taken into assumptions used.
account, be it historical data (equity value,
share price) or forecasts (e.g., business plans).
Accordingly, we deemed the correct

measurement of investments in subsidiaries and
associates to be a key audit matter, due to the
inherent uncertainty of certain components of
the valuation, in particular the likelihood of
achieving forecasts, and because an error of
judgement by management could have a
material impact on the year-end financial
statements.

Specific verifications
In accordance with professional standards applicable

in France, we have also performed the specific
verifications required by French law.
Report on corporate governance

Information provided in the management report
and in other documents concerning the financial We attest that the Supervisory Board’s report on
position and parent-company financial statements corporate governance sets out the information
addressed to the shareholders required by article L.225-37-4 of the French
Commercial Code.
We have no matters to report as to the fair
presentation and the consistency with the financial
Information resulting from other statutory and
statements of the information given in the regulatory obligations
management report of the Executive Board approved
on March 3, 2020 and in the other documents with Other information
respect to the financial position and the financial
In accordance with French law, we have verified that
statements provided to the Shareholders.
the required information concerning the purchase of
Management has confirmed that events that have
investments and controlling interests has been
occurred and information that has come to light
properly disclosed in the management report.
relating to the Covid-19 crisis since the financial
statements were closed will be reported to the Annual
General Meeting called to approve these financial Report on other legal and regulatory requirements
statements.
Appointment of the Statutory Auditors
We were appointed Statutory Auditors of Edmond de

With respect to the fair presentation and the Rothschild (France) by the Annual General Meeting
consistency with the financial statements of the held on 29 May 1999 for PricewaterhouseCoopers
information relating to the payment deadlines Audit and for Didier Kling & Associés.
mentioned in Article D.441-4 of the French
Commercial Code (code de commerce), we have the As at 31 December 2019, both firms were in the
following observation: As stated in the management’s twenty-one year of total uninterrupted engagement.
report, this information does not include bank and
other related transactions, as your Company considers Responsibilities of management and those charged
that such operations fall outside the scope of the with governance for the financial statements
information to be disclosed.
Management is responsible for preparing financial
statements presenting a true and fair view in
accordance with French accounting principles, and for
We attest that the non-financial performance implementing the internal control procedures it deems
reporting required by Article L.225-102-1 of the necessary for the preparation of financial statements
French Commercial Code is included in the free of material misstatement, whether due to fraud or
management report. We add that, in accordance with error.
the provisions of Article L.823-10 of this Code, the
information contained in this statement has not been
the subject of our verifications of fairness or
In preparing the financial statements, management is
consistency with the consolidated financial statements
responsible for assessing the company's ability to
and must be certified by an independent third party.
continue as a going concern, disclosing, as applicable,

matters related to going concern and using the going
concern basis of accounting, unless it expects to
liquidate the company or to cease operations.

The Audit Committee is responsible for monitoring the - Obtain an understanding of internal control
financial reporting process and the effectiveness of relevant to the audit in order to design audit
internal control and risk management systems, as well procedures that are appropriate in the
circumstances, but not for the purpose of
as, where applicable, any internal audit systems,
expressing an opinion on the effectiveness of the
relating to accounting and financial reporting internal control;
procedures.
- Evaluate the appropriateness of accounting
The financial statements were approved by the policies used and the reasonableness of
Executive Board. accounting estimates made by management and
the related disclosures in the notes to the financial
Responsibilities of the Statutory Auditors relating statements;
to the audit of the financial statements
- Assess the appropriateness of management’s use
Objective and audit approach of the going concern basis of accounting and,
based on the audit evidence obtained, whether a
Our role is to issue a report on the financial material uncertainty exists related to events or
conditions that may cast significant doubt on the
statements. Our objective is to obtain reasonable
company’s ability to continue as a going concern.
assurance about whether the financial statements as a This assessment is based on the audit evidence
whole are free of material misstatement. Reasonable obtained up to the date of the audit report.
assurance is a high level of assurance, but is not a However, future events or conditions may cause
guarantee that an audit conducted in accordance with the company to cease to continue as a going
professional standards will always detect a material concern. If the Statutory Auditors conclude that a
misstatement when it exists. Misstatements can arise material uncertainty exists, they are required to
draw attention in the audit report to the related
from fraud or error and are considered material if,
disclosures in the financial statements or, if such
individually or in the aggregate, they could reasonably disclosures are not provided or are inadequate, to
be expected to influence the economic decisions of issue a qualified opinion or a disclaimer of opinion;
users taken on the basis of these financial statements.
- Evaluate the overall presentation of the financial
As specified in article L.823-10-1 of the French statements and assess whether these statements
Commercial Code, our audit does not include represent the underlying transactions and events
assurance on the viability or quality of management of in a manner that achieves fair presentation.
the company.
As part of an audit conducted in accordance with

professional standards applicable in France, the
Statutory Auditors exercise professional judgement
throughout the audit. They also:
- Identify and assess the risks of material

misstatement of the financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence considered to be sufficient and
appropriate to provide a basis for their opinion.
The risk of not detecting a material misstatement
resulting from fraud is higher than for one
resulting from error, as fraud may involve
collusion, forgery, intentional omissions,
misrepresentations, or the override of internal
control;

• .
Reporting to the audit committee No 537-2014, confirming our independence within the
meaning of the rules applicable in France, as defined in
We submit a report to the Audit Committee which particular in articles L.822-10 to L.822-14 of the French
includes in particular a description of the scope of the Commercial Code and in the French Code of Ethics for
audit and the audit programme implemented, as well Statutory Auditors. Where appropriate, we discuss any
as the results of our audit. We also report any risks to our independence and the related safeguard
significant deficiencies in internal control that we have measures with the Audit Committee.
identified regarding the accounting and financial
reporting procedures. Neuilly-sur-Seine, 21 April 2020
Our report to the Audit Committee includes the risks

of material misstatement that, in our professional The Statutory Auditors
judgement, were of most significance in the audit of
the financial statements and which constitute the key PricewaterhouseCoopers Audit………..Philippe Chevalier
audit matters that we are required to describe in this Cabinet Didier Kling & Associés………….Solange Aïache
report.
We also provide the Audit Committee with the

declaration provided for in article 6 of Regulation (EU)

Special report on related-party agreements and Agreements and commitments subject to shareholder
commitments approval
Agreements and commitments already approved by

To the Shareholders, the Annual General Meeting
In our capacity as Statutory Auditors of your Agreements and commitments approved during the
company, we hereby present our report on related- past year
party agreements and commitments.
We have not been informed of any agreement
It is our responsibility to report to shareholders, based authorised and formed during the year that is to be
on the information provided to us, on the main terms submitted for the approval of shareholders in the
and conditions of agreements and commitments that annual general meeting in accordance with Article L.
have been disclosed to us or that we may have 225-86 of the French Commercial Code.
identified as part of our engagement, as well as the
reasons given as to why they are beneficial for the
Company, without commenting on their relevance or
substance or identifying any undisclosed agreements
or commitments. It is your responsibility, under the
terms of Article R. 225-58 of the French Commercial
Code, to assess the benefits resulting from these
agreements and commitments prior to their approval.
Moreover, it is also our responsibility, where

applicable, to provide you with the information
stipulated in Article R. 225-58 of the French
Commercial Code relating to the performance, during
the past year, of agreements and commitments
already approved by the General Meeting.
We have carried out the procedures we considered

necessary for this task pursuant to the professional
guidelines of the French Institute of Statutory Auditors
(Compagnie Nationale des Commissaires aux
Comptes). Our work consisted of verifying that the
information provided to us is consistent with the
underlying documents from which it was extracted.

Agreements already approved by the annual general
meeting Persons concerned
Ariane de Rothschild is a member of the Supervisory
Agreements and commitments already approved by Board of Edmond de Rothschild (France) and
the annual general meeting Chairman of the Supervisory Board of Edmond de
Rothschild Asset Management (France).
Agreements with companies with executives in
common implemented during the year and approved Philippe Cieutat is Chief Executive Officer of Edmond
in previous years de Rothschild (France) and Vice-Chairman of the
Supervisory Board of Edmond de Rothschild Asset
In accordance with Article R. 225-57 of the French Management (France).
Commercial Code, we were informed that the
performance of the following agreements and
commitments, already approved by the Annual
General Meeting in previous years, continued in 2019. Neuilly-sur-Seine, 17 April 2020
1. Agency agreement with Edmond de Rothschild The Statutory Auditors

Asset Management (France)
PricewaterhouseCoopers Audit………..Philippe Chevalier
Nature and purpose Cabinet Didier Kling & Associés………….Solange Aïache
Following the authorisation given on 12 December

2002 by the Supervisory Board, Edmond de Rothschild
(France) entered into an agency agreement with
Edmond de Rothschild Asset Management (France) on
16 December 2002. An amendment to this agreement
was signed on 30 July 2007.
Edmond de Rothschild (France) holds 99.99% of the

capital of Edmond de Rothschild Asset Management
(France).
Arrangements
In the course of the Group’s relations with external

partners that market the funds managed by Edmond
de Rothschild Asset Management (France) and other
related companies, Edmond de Rothschild (France)
tasks Edmond de Rothschild Asset Management
(France) with paying those partners the amount owed
by Edmond de Rothschild (France) under the relevant
partnership agreements. Edmond de Rothschild
(France) then settles the amount concerned by
payment in arrears to Edmond de Rothschild Asset
Management (France), upon presentation of quarterly
or annual invoices. In 2019, the remuneration paid by
Edmond de Rothschild (France) to Edmond de
Rothschild Asset Management (France) under this
agreement amounted to €1,091,096 excluding taxes.

Resolutions
First resolution
The General Meeting, having reviewed the report of the Executive Board, the observations of the
Supervisory Board and the report of the Auditors on the parent-company financial statements, approves
the balance sheet and income statement for the financial year ended 31 December 2019, together with
the transactions recorded in those statements or summarised in those reports.
In accordance with Article 223 quater of the French General Tax Code, the General Meeting notes that
the total amount of expenses within the meaning of Article 39(4) of the French General Tax Code was
€318,294 in 2019, corresponding to €106,098 of income tax assumed.
Second resolution
The General Meeting, having reviewed the report of the Executive Board, the observations of the
Supervisory Board and the report of the Auditors on the consolidated financial statements, approves the
consolidated balance sheet and consolidated income statement for the financial year ended 31
December 2019, together with the transactions recorded in those statements or summarised in those
reports.
Third resolution
The General Meeting, having read the special report of the Auditors, approves the agreements referred
to in that report.
Fourth resolution
The General Meeting takes note that the profit available for distribution comprises (in euros):
Net income for 2019 −5,894,022.48

Retained earnings 71,213,513.49
Appropriation to the -
Income available for 65,319,491.01
The General Meeting resolves to charge the loss for the year ended 31 December 2019 as stated in the
table above against retained earnings, the balance of which will then be €65,319,491.01.
In accordance with article 243 bis of the French General Tax Code, it is stated that the dividend qualifies
for the 40% allowance for natural persons whose tax domicile is in France provided for in article 158-3 of
the French General Tax Code.
The following dividends per share were paid in respect of the three previous financial years:
2018 2017 2016
Dividend per share - 3.44 2.40
Amount eligible for
relief under Article 40% 40% 40%
158-3-2 of the
h l

Fifth resolution
The General Meeting, having considered the result of work carried out in relation to the renewal of
Benjamin de Rothschild’s term of office as a member of the Supervisory Board, and noting that the
criteria of integrity, knowledge, experience, skills and availability required by regulations in force are
met, whereas the independence criteria are not met because of his status as the indirect major
shareholder, resolves to renew Benjamin de Rothschild’s term of office as a member of the Supervisory
Board for a three-year term expiring at the end of the General Meeting convened to approve the financial
statements for 2022.
Sixth resolution
Ariane de Rothschild’s term of office as a member of the Supervisory Board, and noting that the criteria
of integrity, knowledge, experience, skills and availability required by regulations in force are met,
whereas the independence criteria are not met because of her family connection with the indirect major
shareholder and the fact that she is a corporate officer of Edmond de Rothschild (France)’s majority
shareholder, resolves to renew Ariane de Rothschild’s term of office as a member of the Supervisory
Board for a three-year term expiring at the end of the General Meeting convened to approve the financial
statements for 2022.
Seventh resolution
The General Meeting, having considered the result of work carried out in relation to the renewal of Louis-
Roch Burgard’s term of office as a member of the Supervisory Board, and noting that the criteria of
integrity, knowledge, experience, skills and availability required by regulations in force are met, as are
the independence criteria as set out in the Middlenext governance code, resolves to renew Louis-Roch
Burgard’s term of office as a member of the Supervisory Board for a three-year term expiring at the end
of the General Meeting convened to approve the financial statements for 2022.
Eighth resolution
Jacques Ehrmann’s term of office as a member of the Supervisory Board, and noting that the criteria of
the independence criteria as set out in the Middlenext governance code, resolves to renew Jacques
Ehrmann’s term of office as a member of the Supervisory Board for a three-year term expiring at the end
of the General Meeting convened to approve the financial statements for 2022.
Ninth resolution
Christian Varin’s term of office as a member of the Supervisory Board, and noting that the criteria of
the independence criteria as set out in the Middlenext governance code, resolves to renew Christian
Varin’s term of office as a member of the Supervisory Board for a three-year term expiring at the end of
the General Meeting convened to approve the financial statements for 2022.
Tenth resolution

The General Meeting, having considered the result of work carried out in relation to the appointment of
Josépha Wohnrau as a member of the Supervisory Board, and noting that the criteria of integrity,
knowledge, experience, skills and availability required by regulations in force are met, whereas the
independence criteria are not met because of her role as an employee within the Edmond de Rothschild
Group, resolves to appoint Josépha Wohnrau as a member of the Supervisory Board for a three-year
term expiring at the end of the General Meeting convened to approve the financial statements for 2022.
Eleventh resolution
The General Meeting, having been read the Executive Board report and having been consulted in
accordance with Article L. 511-73 of the French Monetary and Financial Code, approves the overall
package of remuneration of all types amounting to €11,330,824 paid during 2019 to persons covered by
Article L. 511-71 of the French Monetary and Financial Code for Edmond de Rothschild (France) and
€2,094,060 for the Italian branch of Edmond de Rothschild (France).
Twelfth resolution
The General Meeting, having been read the Executive Board report, and in order to ensure that the
Group remains competitive in terms of remuneration, resolves that the variable element of the total
remuneration of persons covered by Article L. 511-71 of the French Monetary and Financial Code may
represent a maximum of twice their fixed remuneration. That decision shall apply to people with the
following roles or meeting the following criteria:
- Roles:
• Members of the Executive Committee, the Executive Board and Senior Management
• Heads of Control Functions (Audit, Risk Management, Compliance) and those with managerial
responsibilities that report to them
• Heads of Business Units and those with managerial responsibilities that report to them;
• Heads of certain Support Functions (including Finance, HR, IT, Legal etc.)
• Heads of Risk Management and Members of Risk Committees
• Heads of New Products and Members of New Products Committees
- Other criteria:
• Managers of Risk-Takers
• Employees whose total remuneration is €500,000 or more and/or employees in the top 0.3% in
terms of remuneration
• Employees whose total remuneration is at least equal to that of the Senior Management member
with the lowest remuneration

EDR France RA EN 2019

Uploaded by

Copyright:

Available Formats

EDR France RA EN 2019

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

EDR France RA EN 2019

Uploaded by

Copyright:

Available Formats

Edmond de Rothschild (France)

2019 Annual Report

4 Shareholders’ letter 155 financial statements

7 Edmond de Rothschild Group 178 Parent company five year summary

9 Edmond de Rothschild (France)

Declaration of extra-financial Resolutions

Edmond de Rothschild Group

IFRS consolidated income

92 IFRS cash flow statement

94 Statement of changes in equity

Notes to the consolidated financial

ANNUAL REPORT 2019 | 3

4 | EDMOND DE ROTHSCHILD (FRANCE)

ANNUAL REPORT 2019 | 5

7 Edmond de Rothschild Group

9 Edmond de Rothschild (France)

6 | EDMOND DE ROTHSCHILD (FRANCE)

Edmond de Rothschild: unique The Edmond de Rothschild Group

The Edmond de Rothschild Group in figures

CHF173 billion in assets under management (€160 billion)

22.7% FINMA capital adequacy ratio

2,600 employees at 31 December 2019

ANNUAL REPORT 2019 | 7

8 | EDMOND DE ROTHSCHILD (FRANCE)

Shareholder base at 31 December 2019

2015 2016 2017 2018 2019

Asset Breakdown of assets managed

ANNUAL REPORT 2019 | 9

Balance sheet highlights 2017 2018 2019

Total assets 3,443 3,665 3,955

Income statement highlights 2017 2018 2019

Net banking income 305 300 304

Average headcount (number) 777 789 783

* Excluding net income for the year.

Equity Net banking Gross operating income

Net income Average headcount

10 | EDMOND DE ROTHSCHILD (FRANCE)

13 Report of the Executive Board

39 Internal control procedure applicable to accounting and financial information

40 Sustainable development report

12 | EDMOND DE ROTHSCHILD (FRANCE)

Sales and financial performance varied from one

In thousands of euros 2019 2018 Change

Net banking income 303,631 299,950 1.2%

ANNUAL REPORT 2019 | 13

14 | EDMOND DE ROTHSCHILD (FRANCE)

Operating expenses Non-controlling interest was lower in 2019, after

ANNUAL REPORT 2019 | 15

Overview of income and profitability by division

16 | EDMOND DE ROTHSCHILD (FRANCE)

Service offering focused on

Entrepreneurs are one of Private Banking’s leading

Breakdown of Private Banking results

In thousands of euros 2019 2018 Change

Net banking income 83,779 86,824 −3.5%

18 | EDMOND DE ROTHSCHILD (FRANCE)

In Italy, business continued to decline as a result of

Overall, Private Banking net banking income