2026 HY Statutory auditor's report on the Consolidated Financial Statements

Statutory auditors’ review report on the condensed interim consolidated financial statements

DELOITTE & ASSOCIES          ERNST & YOUNG et Autres

This is a free translation into English of the statutory auditors review report on the condensed interim consolidated financial statements of the Company issued in French and is provided solely for the convenience of English-speaking readers. This report should be read in conjunction with, and construed in accordance with, French law and professional standards applicable in France.

Arval Service Lease
Period from January 1 to June 30, 2026

To the Chief Executive Officer,

In our capacity as statutory auditors of Arval Service Lease and in accordance with your request, we have performed a review of the accompanying condensed interim consolidated financial statements (the “Financial Information”) of Arval Service Lease for the period from January 1 to June 30, 2026.

The preparation of this Financial Information is the responsibility of your Board of Directors. Our role is to express a conclusion on this Financial Information based on our review.

We conducted our review in accordance with professional standards applicable in France and the professional guidance issued by the French Institute of Statutory Auditors (Compagnie Nationale des Commissaires aux Comptes) applicable to this engagement. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the Financial Information is not prepared, in all material respects, in accordance with IAS 34 –IFRS as adopted by the European Union relating to interim financial information.

This report is governed by French law. The courts of France shall have exclusive jurisdiction over any claim or dispute resulting from our engagement letter or this report, or any related matters. Each party irrevocably waives its right to oppose any action brought before French courts, to claim that the action is being brought before an illegitimate court or that the courts have no jurisdiction.

Paris-La Défense, September 30, 2026

The Statutory Auditors
French original signed by

DELOITTE & ASSOCIES          ERNST & YOUNG et Autres

Jean-Vincent Coustel     Aurélien Lagarde     Luc Valverde

CONSOLIDATED FINANCIAL STATEMENTS
First half 2026

Contents

• PRELIMINARY REMARK
• PROFIT AND LOSS ACCOUNT FOR THE FIRST HALF OF THE YEAR 2026
• STATEMENT OF NET INCOME AND CHANGES IN ASSETS AND LIABILITIES RECOGNISED DIRECTLY IN EQUITY
• BALANCE SHEET AS AT 30 JUNE 2026
• STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY BETWEEN 31 DECEMBER 2024 AND 30 JUNE 2026
• CASH FLOW STATEMENT FOR THE FIRST HALF OF 2026
• 1. GENERAL INFORMATION AND STRATEGY
  • 1.a GENERAL INFORMATION
  • 1.b STRATEGY
  • 1.c RISK MANAGEMENT
• 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES APPLIED BY ARVAL GROUP
  • 2.a ACCOUNTING STANDARDS
  • 2.b CONSOLIDATION
  • 2.c TRANSLATION OF FOREIGN CURRENCY TRANSACTIONS
  • 2.d BUSINESS COMBINATION AND GOODWILL
  • 2.e FINANCIAL INFORMATION IN HYPERINFLATIONARY ECONOMIES
  • 2.f RENTAL FLEET
  • 2.g REVENUES
  • 2.h PROPERTY, PLANT, OTHER EQUIPMENT AND INTANGIBLE ASSETS
  • 2.i HEDGE ACCOUNTING
  • 2.j EMPLOYEE BENEFITS
  • 2.k ACCOUNTING STANDARD SPECIFIC TO INSURANCE ACTIVITY
  • 2.l CASHFLOW STATEMENT
  • 2.m USE OF SIGNIFICANT ESTIMATES IN THE PREPARATION OF THE FINANCIAL STATEMENTS
• 3. NOTES TO THE PROFIT AND LOSS FOR THE FIRST HALF OF THE YEAR 2026
  • 3.a LEASE CONTRACT MARGIN
  • 3.b LEASE SERVICE MARGIN
  • 3.c CARS SALES RESULT AND REVALUATION
  • 3.d OPERATING EXPENSES
  • 3.e COST OF RISK
  • 3.f OTHER INCOMES AND OTHER EXPENSES
  • 3.g SHARE OF EARNINGS OF EQUITY METHOD ENTITIES
  • 3.h CORPORATE INCOME TAX
• 4. SEGMENT INFORMATION
  • 4.a RENTAL FLEET
  • 4.b FTE’S (FULL TIME EQUIVALENT)
  • 4.c GROSS OPERATING INCOME
• 5. NOTES TO THE BALANCE SHEET AS AT 30 JUNE 2026
  • 5.a GOODWILL
  • 5.b OTHER INTANGIBLE ASSETS
  • 5.c RENTAL FLEET
  • 5.d PROPERTY, PLANT AND OTHER EQUIPMENT
  • 5.e EQUITY METHOD INVESTMENTS
  • 5.f SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
  • 5.g DERIVATIVES USED FOR HEDGING PURPOSES
  • 5.h OTHER FINANCIAL ASSETS
  • 5.i CURRENT AND DEFERRED TAXES
  • 5.j INVENTORIES
  • 5.k TRADE RECEIVABLES
  • 5.l CASH AND CASH EQUIVALENTS
  • 5.m OTHER RECEIVABLES AND PREPAYMENTS
  • 5.n SHAREHOLDER’S EQUITY
  • 5.o SUBORDINATED DEBT
  • 5.p DEBT SECURITIES AT AMORTISED COST
  • 5.q BORROWINGS FROM FINANCIAL INSTITUTIONS
  • 5.r RETIREMENT BENEFITS OBLIGATION AND LONG-TERM BENEFITS
  • 5.s PROVISIONS
  • 5.t TRADE AND OTHER PAYABLES
• 6. COMMITMENTS GIVEN AND RECEIVED
• 7. ADDITIONAL INFORMATION
  • 7.a EARNINGS PER SHARE
  • 7.b PAID DIVIDENDS
  • 7.c SCOPE OF CONSOLIDATION
  • 7.d MEASUREMENT OF THE FAIR VALUE OF FINANCIAL INSTRUMENTS
  • 7.e COMPENSATION AND BENEFITS AWARDED TO THE ARVAL GROUP ’S OFFICERS
  • 7.f SHARE-BASED PAYMENT
  • 7.g ADDITIONAL INFORMATION ON INSURANCE ACTIVITIES
  • 7.h EVENTS AFTER THE REPORTING PERIOD

PRELIMINARY REMARK

The financial statements and notes presented within this document are referring to consolidated accounts. As a reminder, Arval, fully part of BNP Paribas group that already produces consolidated accounts integrating Arval, has opted for the first option (IFRS 1 D16(a)). Indeed, as BNPP created Arval, it was therefore not necessary to eliminate the effects of a takeover.

It means that Arval uses the same figures (which comply with IFRS Standards) it produced for the BNP Paribas group consolidated financial statements based on BNP Paribas group’s principles adopted at the date of transition. This option is also an opportunity to use the same accounting bookings for both BNP Paribas group and for Arval in order to publish the financial statements drawn up on the same basis.

The consolidated financial statements are presented in millions of Euros. In certain cases, rounding may cause non-material discrepancies in the lines and columns showing totals.

PROFIT AND LOSS ACCOUNT FOR THE FIRST HALF OF THE YEAR 2026

STATEMENT OF NET INCOME AND CHANGES IN ASSETS AND LIABILITIES RECOGNISED DIRECTLY IN EQUITY

Changes in exchange differences are analysed as follows:

BALANCE SHEET AS AT 30 JUNE 2026

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY BETWEEN 31 DECEMBER 2024 AND 30 JUNE 2026

CASH FLOW STATEMENT FOR THE FIRST HALF OF 2026

Cash and cash equivalents are shown in Note 5.l.

NOTES TO THE FINANCIAL STATEMENTS

These consolidated financial statements were authorized for issue by ARVAL Board of directors on September 11, 2026.

1. GENERAL INFORMATION AND STRATEGY

1.a GENERAL INFORMATION

Arval was founded in 1989 and is fully owned by BNP Paribas. In the BNPP Group, Arval sits within Retail Banking & Services division, renamed Commercial, Personal Banking & Services (CPBS). Arval is a direct subsidiary of BNPP Fortis group (100% ownership).

ARVAL Service Lease (Parent company) is a French « Société Anonyme » and is part of BNP Paribas group. Its registered office is located at 1 boulevard Haussmann – 75009 Paris.

Arval group is a group offering full-service vehicle leasing and new mobility services with a direct presence in 29 countries. Arval group offers flexible solutions to make journeys seamless and sustainable for our customers, which range from large international corporate organisations to smaller companies and individual retail clients.

Arval group benefits from a diversified revenue and profit base composed of three principal components: the leasing contract margin, the services margin, and the car sales result.

Under its primary product offering full-service leasing, Arval group purchases vehicles with a view to leasing them to customers for a period generally of 36-48 months. Arval earns a margin on leases equal to the difference between the lease payments received from customers and the costs of the lease, which include the depreciation of the leased vehicle and the financial costs of financing the purchase of the corresponding vehicle.

Arval group also generates profits, referred to as the services margin, through the wide range of services that it offers under both its full-service leasing and fleet management products, such as maintenance and repairs, insurance, tyres and replacement vehicles.

Finally, Arval group generates profits or losses from the resale of its vehicles at the termination of a lease contract. Arval remarkets and sells used cars at the end of their lease term via several channels, including selling them to used car dealers, through auctions, directly to users of vehicles, and directly to external buyers through retail sites or through its online car sales platform dedicated to professionals, MotorTrade.

First half of 2026 highlights

Activity

• Arval increased its fleet of leased vehicles by 5.7% compared to end of June 2025, with 1,931,753 vehicles.
• The leased fleet on the corporate segment has 1,251,537 vehicles at the end of June 2026, a growth of 4.1% compared to the end of June 2025.
• The Retail segment reached 638,173 vehicles, an increase of 9.8% compared to the end of June 2025, demonstrating the growing interest of SMEs and individuals for long-term leasing and the success of partnerships implemented for long-term leasing (growth in the individual customer segment also amounting to 17.0%).
• The Arval Flex fleet (flexible medium-term subscription) stood at 42,043 cars, down 3.4% compared to the end of June 2025, due to the better availability of vehicles for long-term leasing thanks to the gradual return to a normal level of delivery times.
• Arval's fleet has 772,746 electrified vehicles (hybrid vehicles and electric vehicles) at 30 June 2026, up 22.5% compared to last year. Growth of fully electric vehicles was very strong: +31.2%, at 387,218 vehicles.

Arval has 8,709 employees serving more than 400,000 customers in 29 countries.

During the first half f 2026, Arval's gross revenues increased by 3.7%, to €10,926.5 million (€10,538.5 million in the first half of 2025), in connection with business growth.

Gross operating income amounted to €839.2 million (-23.5% compared to the first half of 2025 and - 19.6% excluding the impact of a positive exceptional item for €53 million), recording the increase in lease margins (+22%) and in service margins (excluding exceptional items) up by 2.6%. The margin on the result of vehicle sales and capital gains on disposals is impacted by pressure on used vehicle (VO) prices, with the deterioration observed in March continuing into the second quarter in an unfavourable geopolitical context.

At €555.0 million, Arval Group's operating expenses are well controlled. They increased by 3.3% compared to the first half of 2025. The cost/income ratio stood at 66.1% in the first half of 2026, compared to 49.0% in the same period in 2025, reflecting the decline in used vehicle prices amid unfavourable geopolitical context. The cost/income ratio excluding car sales result showed a significant improvement at 51.0% compared to 52.8% in the first half of 2025, reflecting the positive effect of operational efficiency and digitalisation measures.

The cost of risk remained moderate at €34.3 million, or 16 basis points relative to financial outstandings1. It is close to the level of the previous year (€29.1 million, or 15 basis points).

Net income thus amounted to €114.3 million (€351.4 million in the first half of 2025), down 67.5% compared to the same period last year. Net income, Group share amounted to €115.6 million (-65.9% compared to the same period of 2025).

This result takes into account a negative impact of EUR -43.9 million related to the application of IAS 29 within our Turkish subsidiary (EUR -42.8 million in the first half of 2025).

1 In bp. Financial outstandings (management data) represent the value of the rental portfolio based on financial amortization

Arval thus achieved a good operational performance in the first half of 2026, reflecting growth in its business and in financial outstandings, and records the impact of the decline in the used vehicle market due to an uncertain geopolitical context and rising fuel prices.

Conflict in Ukraine

The Arval Group has no operations in Ukraine. It has analysed and considered all the consequences of the risks linked to the Russo-Ukrainian conflict. In Russia, it has a subsidiary. As of 31 December 2025, the subsidiary no longer holds any leased fleet. The Arval Group is closely monitoring the consequences of the conflict in Ukraine and especially its impact on the economy in Europe.

Bond issuances

At the end of June 2026, bond issuances amounted EUR 1.25 billion in EMTN.

The return to full integration in the prudential scope of the Arval entities, from 1st July 2024, has also been accompanied by a privileged return to intra-group financing methods. As a result, Arval stopped its Commercial Papers and EMTN issuances.

1.b STRATEGY

On 31 July 2026, Arval completed the acquisition of Athlon.

This strategic transaction allows Arval to reach a combined fleet of 2.3 million vehicles, creating the European co-leader in long-term vehicle leasing and mobility solutions, while expanding its expertise and capacity to provide support for its customers. Athlon is present in ten European countries (Netherlands, Germany, Belgium, United Kingdom, Spain, Italia, Portugal, Luxembourg and Poland).

During the first half of 2026, Arval continued its initiatives to decarbonise mobility.

Arval leased over 387,000 electric vehicles at the end of June 2026, while 31% of the vehicles ordered were battery electric in the first half of the year. The average CO₂ emission intensity per km decreased by 26.6% for the vehicles in the leased fleet compared to January 2020. These results are based on a comprehensive approach combining consulting, charging solutions and data on connected vehicles.

Innovation remains a key driver of Arval's strategy.

During the first half of the year, the Company launched "Weather Alert", a new connected service designed to improve driver safety and protect vehicles from weather events.

The half-year was also marked by the continued development of the insurance activities of Greenval Insurance, a wholly owned subsidiary of Arval, which passed the milestone of one million insured vehicles. Greenval thus confirmed its position as one of the leading players in mobility insurance in Europe, while illustrating Arval's ability to provide innovative solutions to its customers.

Lastly, the 2026 edition of the Arval Mobility Observatory's Fleet and Mobility Barometer points to the transition of companies from goals to action in terms of electrification, cost control and employee mobility. At the same time, TCO Scope 2026 confirmed the acceleration of the electrification of fleets.

The first half of 2026 also highlighted Arval's commitment to social responsibility.

Arval was awarded the EcoVadis Platinum Medal for the second consecutive year, with a score of 90/100 in the 2025 assessment, up seven points compared to the previous year. This recognition places the Company among the top 1% of the best-rated companies worldwide in terms of social responsibility, according to criteria covering the environment, human rights, ethics and responsible purchasing.

Arval also published its 2026 CSRD report, underlining Arval's sustainability results and commitments, and illustrating concrete progress in 2025, notably with an average intensity of 87 g CO₂/km for new passenger cars, below the European average (98 g CO₂/km).

Arval reaffirmed its commitments to diversity and inclusion by renewing its commitment to the JamaisSansElles (Never Without Her) charter. The Company also continued its road safety initiatives, a pillar of its sustainable development strategy.

Arval also publishes CSR reports available on the Arval.com website.

1.c RISK MANAGEMENT

1.c.1 SPECIFIC RISKS ASOCIATED WITH THE ACTIVITY

Arval is exposed to asset risk, which can be split into two main underlying risk components: the residual value risk and the risk related to service maintenance.

Residual value risk

The residual value, defined as the value of the vehicle at the end of the lease as estimated by Arval at inception of the lease, may differ from the future market value of the car at the end of the contract. This difference is a part of the global risk on used car sales and is managed through robust internal procedures applied to all Arval subsidiaries in order to set, control and reevaluate the residual values on the running fleet. The determination of residual values is done at the level of Arval entities, in accordance with the standards and methodology defined by the group, taking into account the specificities of the used car market in each country. The residual value, defined according to the age and mileage of the vehicle, is produced by each Arval entity using a statistical model based on the entity's own historical vehicle sales data and in some cases on external data. Arval has defined a set of governance, risk management and control measures to address this model risk, thereby limiting the likelihood of a material impact on financial performance. In accordance with the application of International Accounting Standards (IAS), the valuation of the financial disposal result is done contract by contract and spread over contract lifetime. The estimate of the result of disposal is made taking into account a residual value adjustment giving the best economical view derived from the current state of the used-car market and the time horizon when the vehicles will be sold.

Risk related to services maintenance and tyres

The maintenance risk is the risk that the actual costs of maintenance incurred during the contract life are greater than the costs forecasted and included in the quotation at the beginning of the contract. In accordance with internal procedures, maintenance cost setting is done locally using local historical statistics, under the supervision of Arval Finance department (central teams). A global review of the maintenance margins is done for each country on a regular basis in order to back test the pricing assumptions in terms of costs and frequencies and to make the necessary adjustments if necessary.

1.c.2 ALM TREASURY RISK

ALM Treasury risks entails 3 types of risks: interest rate risk (IRRBB- interest rate risk in the banking book, foreign exchange risk and liquidity risk.

• Interest rate risk is the risk that the profitability of Arval is affected by movements in interest rates.
• Foreign exchange risk is the risk that the profitability and/or Net Asset Value of Arval is affected by currency fluctuations.
• Liquidity risk is the risk that Arval is not able to meet its cash flow obligations when they fall due.

ALM Treasury risk management policy consists in matching assets and liabilities in terms of maturities, currencies, and interest rate exposure. Arval procedures defining the measurement of such risks and tolerance levels are applied across the group to allow a close monitoring of the ALM Treasury risk. These risks are monitored at corporate level by ALM Treasury, which reports on a quarterly basis to the management team of Arval during a dedicated committee. This committee is informed about all relevant developments regarding the Arval risk profile and decides any action to mitigate the risks when necessary.

Interest rate risk management

Most of Arval lease contracts do have fixed rentals.

Therefore, Arval policy consists mainly in financing ‘fixed rate operational lease assets’ with fixed rate funding with same duration. Residual interest rate risk arises from the remaining gap (surplus or deficit). For this purpose, any residual exposure to interest rate risk must respect the limits set for each entity. Arval’s ALM Treasury oversees the exposure to interest rate risks and requires the subsidiaries to implement appropriate adjustments.

The gap is aggregated and measured at consolidated level and by currency under time buckets. It is reported to Arval Asset and Liability Management Committee (ALCO) and framed by specific limits allocated by Arval Board of directors.

Furthermore, every subsidiary reports its interest rate position to Risk.

Arval implemented close monitoring of interest rate risk exposure as well as supervision of asset- liability topics.

Foreign exchange risks

Arval policy mainly consists of financing the underlying asset in the same currency as the corresponding lease contract. But in a couple of foreign entities, another currency than the local one is used and may generate a foreign exchange risk exposure which is framed by a dedicated limit.

Besides, Arval is present in countries outside the Euro zone and is therefore exposed to foreign exchange risks related to dividends to be received from its subsidiaries as well as net investments in those subsidiaries. The later Risk is reported and monitored regularly in Arval ALCO (Asset and Liability Management Committee).

Liquidity risks

Arval is exposed to liquidity risk which is the risk of not being able to meet cash flow requirements when they fall due.

A liquidity position is defined as the difference by time bucket between operational lease contracts, including commitments and dedicated liabilities (funding and net equity). It is measured by currency.

Arval’s exposure to liquidity risks is limited as the group policy consists in financing the underlying asset over the same duration as the corresponding lease contract.

A potential residual liquidity gap is measured on a quarterly basis, under the supervision of Arval ALM Treasury department, by comparing the schedule of the existing leased assets with the schedule of funding.

The driven liquidity GAP position is consolidated at Arval group level. It is reported to Arval ALCO and framed by limits allocated by Arval board. Any deviation from the limits is reported to Arval ALCO and Arval ALM Treasury proposes to and implements a remediation action.

1.c.3 CREDIT RISK

The credit risk is the risk of possible losses arising from the inability of the Arval’s customers to meet their financial commitments. Credit risk includes the counterparty risk. In addition, credit risk may be further amplified by concentration risk, which arises from a large exposure to a given risk, to one or a few counterparties.

Credit risk management policy

Credit risk is the risk that a customer is not able to fulfil its financial obligations towards Arval. All Arval entities have to comply with risk policies and procedures issued centrally which define the way credit requests have to be studied and validated, as well as the roles and responsibilities of all staff involved in the credit vetting process. Each subsidiary has a specific credit authority approved by Arval General Management and RISK Arval, and determined according to the subsidiary’s size of the fleet, the maturity of the subsidiary and the type of customer concerned (corporate, retail). Within its credit delegation (while respecting all policies and special rules), each subsidiary can decide directly on its counterparty risk. Above this threshold, credit decision is made at central level. Regular risk committees are held by Arval both at local and central level in order to review all potential risk issues and to ensure the credit risk procedures are properly applied. All standard risk indicators (arrears / default / cost of risk) are also monitored both locally and centrally. All Arval entities are applying the same or similar process locally (described in section 5.k). The primary responsibility for debt collection remains under the direct responsibility of Arval’s entities with dedicated teams in charge of recovering unpaid invoices in compliance with local regulations and market practices.

Impairment charges on receivables (cost of risk) has historically remained low due to the nature of the products proposed by Arval (Arval owns the asset), a strict control of the risk assessment process and a very diversified customer portfolio.

Derivative financial instruments

In addition to its natural exposure to credit risk in the leasing of vehicles, Arval is also potentially exposed to credit risk because of its use of derivative financial instruments, but with very limited risk as Arval only have currency hedging in Brazil (currency hedging of financing) and within the framework of the securitized Pulse issuance (rate hedging with BNP Paribas as counterparty).

1.c.4 OPERATIONAL RISK

Arval aims at protecting its customers, its staff and its shareholders from operational risk. To do so, it has developed a risk management infrastructure based on identifying and anticipating potential risks, strategies to mitigate risk, and actions to raise awareness on these risks. It strives to contain operational risk to acceptable levels.

In addition to the general principles governing operational risk, Arval considers that five specific risk areas are particularly significant regarding its activities: Risks emerging from its own leasing operations, Frauds, IT Security, Personal Data Protection, and Third party risk (in particular, suppliers and stakeholders).

1.c.5 COMPLIANCE RISK

Arval endeavours to comply with all applicable laws and regulations and to have strong working relationships with the regulatory authorities responsible for implementation of legal and regulatory requirements. Beyond compliance with laws and regulations, Arval also strives to protect its reputation, that of its shareholder and that of its customers, to ensure ethical professional behaviour, to prevent conflicts of interest, protect customers’ interests and market integrity, fight against money laundering, bribery and the financing of terrorist activities, as well as ensure compliance with sanctions and embargoes. Arval is fully applying BNPP Group’s Code of Conduct which embodies these rules and serves to protect the Group’s reputation.

1.c.6 CONDUCT RISK

Arval considers as a top priority the long-term relationships and partnerships built with the customers, employees, shareholders and communities in countries in which it operates. In pursuit of this objective Arval is committed to:

1. acting in a way that protects customers’ interests in compliance with all relevant laws,
2. complying with all applicable laws for preventing criminal and terrorist activities and with sanctions and embargoes,
3. upholding and protecting the integrity of markets,
4. ensuring that a consistent high standard of individual integrity and professional ethics is maintained by all employees,
5. ensuring that all employees apply best standards in professional behaviour,
6. protecting and upholding its long-term viability for its own sake and that of its shareholders and of the wider economy, and
7. having a positive impact on the stakeholders and on the wider society.

Arval ensures that these principles and the highest ethical standards are applied by its employees in their activities. They are embodied in the Group’s Code of Conduct which is applicable to all Group employees. It encompasses the Group’s Values and Mission and a set of Conduct rules with the objective of driving the behaviours of all Group employees.

1.c.7 INSURANCE RISK

ARVAL group retains some motor insurance related risks (mainly Third-Party Liability but also material damages & driver cover) especially within its own insurance company, Greenval Insurance DAC (Greenval). Greenval is based in Ireland, acting predominately on Freedom of Service (FOS) across European countries and is regulated by the Central Bank of Ireland. In order to minimize the financial impact of major claims, Greenval buys cover from different reinsurance companies for Third Party Liability Risk & Catastrophic risks (CatNat) over a certain threshold of risk that could vary depending on the country and fleet size.

This reinsurance strategy is reviewed annually. Greenval strictly monitors its risk universe, including capital, underwriting, market, credit and operational risk, via a strong corporate governance structure, a clearly defined risk appetite statement and a developed risk monitoring process, all subject to Solvency II guidelines & regulations.

In addition, every year, an external independent actuarial body must opine on whether the level of technical reserves held by Greenval are considered adequate to meet its future obligations.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES APPLIED BY ARVAL GROUP

2.a ACCOUNTING STANDARDS

2.a.1 Applicable accounting standards

The consolidated financial statements of Arval have been prepared in accordance with international accounting standards (International Financial Reporting Standards – IFRS), as adopted for use in the European Union. Accordingly, certain provisions of IAS 39 on hedge accounting have been excluded.

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 “Interim Financial Reporting”, which requires the publication of condensed half-year accounts. The accounting methods and calculation methods used in the interim financial statements are identical to those used in the annual financial statements.

The introduction of other standards, amendments and interpretations that are mandatory as from 1 January 2026 had no effect on the Arval’s financial statements as at 30 June 2026.

2.a.2 New major accounting standards, published but not yet applicable

The Arval Group did not early apply new standards, amendments and interpretations endorsed by the European Union when the application in 2025 was optional.

The impact assessment of the new standards and amendments not yet applicable by the Group is presented below:

• Publication of IFRS 18 “Presentation and disclosure in financial statements” in replacement of IAS 1 “Presentation of Financial Statements"

IFRS 18 will be mandatory from 1 January 2027, with retrospective application.

IFRS 18 includes many of the requirements of IAS 1 without changes and supplements them with new requirements relating to:

• the presentation of specific categories (operating, investment and financing) and sub-totals in the statement of profit or loss account;
• information to be disclosed in the notes to the financial statements on management-defined performance measures (MPM);
• aggregation and disaggregation of information in the statement of profit or loss account.

Arval has continued to assess the detailed implications of the application of IFRS 18 to the Group’s consolidated financial statements, and does not expect any significant changes to the presentation of its income statement other than those resulting from the reclassification into operating profit of items previously classified under “Other income and other expenses.”

Notes