FINANCIAL STATEMENTS OF THE CAIXA D’ESTALVIS I PENSIONS DE BARCELONA, “LA CAIXA”, BANKING FOUNDATION for 2020 Translation of financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the company in Spain (see Note 2). In the event of a discrepancy, the Spanish-language version prevails. This version of our report is a free translation of the original, which was prepared in Spanish. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation. Independent auditor’s report on the annual accounts To the Board of Trustees of Fundación Bancaria Caixa d´Estalvis i Pensions de Barcelona, “la Caixa”: Opinion We have audited the annual accounts of Fundación Bancaria Caixa d´Estalvis i Pensions de Barcelona, “la Caixa” (the Foundation), which comprise the balance sheet as at December 31, 2020, and the statement of profit or loss and notes to the financial statements for the year then ended. In our opinion, the accompanying annual accounts present fairly, in all material respects, the equity and financial position of the Foundation as at December 31, 2020, and its results for the year then ended in accordance with the regulatory financial reporting framework applicable to Foundation (identified in Note 2 to the annual accounts) and, in particular, with the accounting principles and rules contained therein. Basis for opinion We conducted our audit in accordance with legislation governing the audit practice in Spain. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the annual accounts section of our report. We are independent of the Foundation in accordance with the ethical requirements, including those relating to independence, that are relevant to our audit of the annual accounts in Spain, in accordance with the legislation governing the audit practice. In this regard, we have not rendered services other than those relating to the audit of the accounts, and situations or circumstances have not arisen that, in accordance with the provisions of the aforementioned legislation, have affected our necessary independence such that it has been compromised. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the annual accounts of the current period. These matters were addressed in the context of our audit of the annual accounts as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. PricewaterhouseCoopers Auditores, S.L., C/Conquistador, 18, 07001 Palma de Mallorca, España Tel.: +34 915 684 400 / +34 902 021 111, Fax: +34 915 685 400, www.pwc.es 1 R. M. Madrid, hoja 87.250-1, folio 75, tomo 9.267, libro 8.054, sección 3ª Inscrita en el R.O.A.C. con el número S0242 - CIF: B-79 031290 Fundación Bancaria Caixa d´Estalvis i Pensions de Barcelona, “la Caixa” Key audit matters How the matter was addressed in the audit Impairment of non-current investments in Group companies and associates Described below are the main audit procedures The Foundation recognises under “Non- performed in order to verify the measurement current investments in Group companies and process of the Foundation’s investment in the associates” its investment in Criteria Caixa, Criteria Caixa Group: S.A.U which at 31 December 2020 represents more than 90% of the total assets on its • Meetings with the Foundation's balance sheet. Management in order to understand the accounting policies and relevant The Foundation monitors this investment on a assumptions of the measurement process regular basis and at least a year-end tests it of the Criteria Caixa Group’s investment at for indications of impairment, measuring its year end. investment at the lower of cost and recoverable amount. • Obtaining the separate and consolidated annual accounts of Criteria Caixa, S.A, Criteria Caixa, S.A is a holding company, analysing the audit reports and information shareholdings in companies in different on the measurement methods and carrying industry sectors and geographies making up a amounts with respect to its main assets and significant portion of its balance sheet. liabilities. Also, obtaining the equity value of the Criteria Caixa Group at the year end. The Foundation calculates the recoverable amount of its investment in Criteria Caixa, • Checking the disclosures included in the S.A., taking into account its equity value and accompanying annual accounts in relation the information obtained from the monitoring to the year-end measurement of non- carried out in turn by said investee of the most current investments in Group companies significant shareholdings in its portfolio. and associates. Given the representativeness of this Any differences obtained as a result of our investment with respect to total assets on the procedures described above in relation to the balance sheet and the monitoring process Foundation’s calculations are within a reasonable involved in the analysis of the main assets range in terms of the amount at which the recognised by the Criteria Caixa Group on its investmentis recorded in the accompanying consolidated balance sheet, within the current annual accounts. context ofuncertainty, triggered by the crisis caused by Covid-19, this measurement process has been considered a key audit matter. See Notes 4.b) and 6 to the accompanying annual accounts. 2 Fundación Bancaria Caixa d´Estalvis i Pensions de Barcelona, “la Caixa” Key audit matters How the matter was addressed in the audit Recognition of expenses linked to the Foundation’s aims. As described in the notes to accompanying Described below are the main audit procedures annual accounts, in 2020 the Foundation performed to verify the recognition and recognised a significant amount as expenses accounting process of expenses linked to the allocated to activities connected with its Foundation’s aims: foundational aims, which make up most of the Foundation’s expenses. • Meetings with the Foundation's Management in order to gain an Mentioned expenses should be recognised in understanding of the accounting policies the Foundation's income statement on a and estimation methods that form part of accruals basis, i.e. , in the period in which the the expense recognition process at year expenses deriving from the goods or services end. in question are incurred rather than in the period in which the monetary or financial flow • Understanding the internal control actually takes place. environment and monitoring carried out by Management in relation to the approval and The relevance of the appropriate recognition formalisation process for such expenses. of this type of expenses to fair presentation with respect to the Foundation means that • Selecting a sample of agreements or verifying the appropriate recognition of the contracts in order to validate that the expenses linked to its foundational aims is a criterion used to recognise the related key audit matter. expense is consistent and is compliant with applicable legislation. See note 13 to the accompanying annual accounts. • Carrying out substantive procedures in order to verify the accuracy and completeness of the balances recorded in the accounting records by reviewing a sample of contracts and agreements entered into with beneficiaries. • Verifying for a sample of accounting records the documentation supporting the effective settlement of the expense incurred. • Verifying that the disclosures included in the notes to the annual accounts are those required by applicable legislation. Any differences obtained as a result of the procedures described above are within a reasonable range in terms of the amount at which the expenses linked to the foundational aims are recorded in the accompanying annual accounts. 3 Fundación Bancaria Caixa d´Estalvis i Pensions de Barcelona, “la Caixa” Key audit matters How the matter was addressed in the audit Recoverability of deferred tax assets At year-end 2020, the Foundation’s forms part In the framework of our audit and with assistance of the tax group that also includes, among from our tax experts, we gained an other entities, Criteria Caixa, S.A. and understanding of the process followed to CaixaBank, S.A., the latter being the tax estimate deferred tax assets and future group’s ultimate parent company. recoverability. The tax group’s ultimate parent regularly There follows a description of the main audit perform, with the help of an independent procedures carried out: expert, an evaluation of the recoverability period of the deferred tax, according to • Analysis of the tax strategy planned by the applicable regulation, based on latest budgets Foundation’s Management in relation to and Business plans approved by the Board of determining the recoverability of deferred Directors from every Company within the tax tax assets. group. • Review of the reasonableness of the According to the above, the evaluation of the deferred tax assets deemed to be recoverability of deferred tax assets monetizable within the tax group of which recognised at the year-end in the the Foundation forms part. Foundation’s balance sheet will depend, among other factors, on the actual fulfilment • Analysis of the information regarding the of the assumptions and hypotheses latest budgets and business plans used by considered in the recoverability analysis the Parent Company of the tax Group, which performed for the tax group of which the include the estimated future effects derived Foundation forms part, which entails a from the current economic context caused complex analysis requiring a high level of by Covid-19 on the capacity to generate tax judgement and estimation, in an economic bases positive in future years.