BIC - 2018 Registration document

FINANCIAL STATEMENTS

Consolidated financial statements

This impairment is explained by less favorable conditions than initially anticipated on the Stationery products development in India and export markets. At December 31, the Group assesses whether there is an indicator that the various cash generating-units tested annually at June 30 may be impaired. When assessing the financial performance of Pimaco at that date compared to what was expected, the Group concluded that an indicator existed that the cash-generating unit may be impaired. As a consequence, an additional impairment test was performed using the latest long-term strategic plan available,

a 23.9 % weighted average cost of capital (WACC) before tax and an -15% perpetual growth rate. The recoverable amount of the cash-generating unit calculated on the value in use is below the net book value. Pimaco goodwill has accordingly been fully impaired as of December 31, 2018 for an amount of 5.5 million euros. The sensitivity of the other impairment tests to changes in the key assumptions indicates that no reasonably likely change would lead to impairment, taking into account the observed headroom on tests conducted.

INTANGIBLE ASSETS NOTE 11

Accounting policies Internally-generated intangible assets – research and development expenditure An internally-generated intangible asset arising from the development or a development phase of an internal project is only recognized on the balance sheet if all of the following conditions are met: the asset created is identifiable; ● it is probable that the asset created will generate future economic benefits for the Group; ● the development cost attributable to the asset can be measured reliably. ● Internally-generated intangible assets are amortized on a straight-line basis over their estimated useful life. When no internally-generated intangible asset can be recognized, development expenditure is charged to profit or loss in the period in which it is incurred. Patents, trademarks, licenses and software Patents, trademarks, licenses and softwares are measured initially at purchase cost less accumulated amortization and impairment loss. Amortization is booked to proft or loss so as to reduce the carrying amount of assets over their estimated useful life, using the straight-line method. Intangible assets (excluding goodwill) See Note 9-2.

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •