BIC - 2018 Registration document

FINANCIAL STATEMENTS

Consolidated financial statements

Reconciliation between theoretical tax expense and effective income tax expense:

At December 31, 2017*

December 31, 2018

(in thousand euros)

Income before tax

396,691

261,587 34.43% 90,064

Tax rate

34.43%

Theoretical tax expense

136,581

Effects of: differences in tax rates •

(10,901)

(22,199) (4,765) 35,743 (1,058)

income taxed at reduced rate • initial recognition exemptions • intra-Group accruals eliminations • tax assets not recognised on tax losses •

(4,753)

(15,811)

7,733

91

1,456

tax assets/liabilities not recognised on prior years •

4,620

537 448

tax assets recognised on prior year tax losses •

(5,505)

tax credits  •

(11,119)

(13,294)

foreign exchange differences •

1,638

1,305

INCOME TAX EXPENSE

102,574

88,237

EFFECTIVE TAX RATE

25.86%

33.73%

Restated for IFRS 15 – Revenue from Contract with Customers. *

In addition, as of December 31, 2018, the BIC Group has 27.3 million euros of unrecognized deferred tax assets relating to unused tax losses, versus 23.6 million euros in 2017.

7-2

Deferred and current tax recognized in other comprehensive income

Deferred and current taxes recognized in other comprehensive income result from the following items:

At December 31, 2018

Other comprehensive income

Deferred taxes

(in thousand euros)

Actuarial differences on post-employment benefits (1)

5,823

(1,384)

Cash flow hedge

(23,344) (33,244)

8,177 1,638

Foreign exchange impact

Other

(3)

(245)

Total other comprehensive income (2)

(56,592)

9,575 8,191

TOTAL (1) + (2)

(50,769)

At December 31, 2017*

Other comprehensive income

Deferred taxes

(in thousand euros)

Actuarial differences on post-employment benefits (1)

14,389

(30,691)

Cash flow hedge

33,252

(11,360)

Foreign exchange impact

(147,879)

11,241

Other

5

-

Total other comprehensive income (2)

(114,622)

(120)

TOTAL (1) + (2)

(100,233)

(30,811)

Restated for IFRS 15 – Revenue from Contract with Customers. *

207

• BIC GROUP - 2018 REGISTRATION DOCUMENT •