BIC - 2018 Registration document

FINANCIAL STATEMENTS

Consolidated financial statements

NOTE 8

EARNINGS PER SHARE GROUP SHARE

Earnings per share (Group share) and diluted earnings per share (Group share) correspond to the Group net income divided by the relevant number of shares. The number of shares used to calculate the earnings per share (Group share) is the weighted average number of ordinary shares outstanding during the period less the weighted average number of shares held in treasury stock by SOCIÉTÉ BIC during the period and presented as a reduction to equity.

The number of shares used to calculate the diluted earnings per share (Group share) is the weighted average number of shares in circulation during the period, which corresponds to the number of shares used for basic earnings per share Group share, adjusted for the dilutive effect of stock options. As of December 31, 2018, there are no shares with relutive impact.

December 31, 2017*

December 31, 2018

Numerator (in thousand euros) Net income Group share from continuing operations Denominator (in number of shares) Weighted average number of ordinary shares in circulation

294,117

173,350

46,475,249

45,598,109

Dilutive effect of stock options and free shares

264,436

208,798

Weighted average number of ordinary shares in circulation after dilutive effect Earnings per share Group share from continuing operations (in euros) Earnings per share Group share from continuing operations

46,739,685

45,806,907

6.33 6.29

3.80 3.78

Diluted earnings per share Group share from continuing operations

Restated for IFRS 15 – Revenue from contracts with customers. *

NOTE 9

PROPERTY, PLANT AND EQUIPMENT

Accounting policies Land and buildings held by the Group for use in the production or supply of goods or services, or for administrative purposes, are recognized in the balance sheet at their initial acquisition cost, less any accumulated depreciation and impairment losses. Depreciation is booked to profit or loss. Property, plant and equipment in the course of construction for production, rental or administrative purposes, are carried at cost, less any identified impairment loss. Depreciation of these assets, on the same basis as other property, plant and equipment assets, starts when the assets are ready for their intended use. Fixtures and equipment are stated at initial acquisition cost less accumulated depreciation and impairment losses. Depreciation is booked to profit or loss so as to reduce the carrying amount of assets, other than land and properties under construction, over their estimated useful life, using the straight-line method. Lease contracts that convey to the customer ('lessee') the right to control the use an identified asset for a period of time in exchange for consideration. The lessee entities of the Group book, in assets as a right of use with a financial debt as a counterpart, all the lease contracts whatever the nature, operating lease or financial lease. The term used corresponds to the non-cancellable period, the periods covered by the extension option, the exercise of which is reasonably certain, and the periods covered by the termination option, the non-exercise of which is reasonably certain. For 3,6,9 leases in France, the contract is generally enforceable for 9 years. The Group applies the exemptions permitted by IFRS 16 for contracts with a duration of less than 12 months or where the underlying asset is of low value (less than 5,000 U.S. dollars). The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss. The depreciation method is the straight-line method, on the following basis:

Buildings 25 years ● Fixtures, machinery and equipment 5 to 8 years ● Vehicles 3 to 5 years ●

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •