BIC - 2018 Registration document

FINANCIAL STATEMENTS

Consolidated financial statements

Other As of December 31, 2018, one marketing related intangible asset was preliminary identified for an amount of 467.8 million Kenyan Shilling (4.0 million euros at December 31,2018). This intangible is amortized over a three year-period. This asset is allocated to the to the Kenyan subsidiary cash-generating units (BIC East Africa).

These trademarks have an infinite lifetime. For impairment test purposes, they are linked to the PIMACO and Cello Pens subsidiaries’ cash-generating units. Given the indefinite nature of the life of the trademark, no impact was recognized in the income statement.

OTHER NON-CURRENT ASSETS NOTE 12

Notes December 31, 2017

December 31, 2018

(in thousand euros)

Other investments

30

28

Guarantee deposits Deferred pensions Subordinated loan

4,932 9,813 8,338

4,431 2,935

21

-

Other non-current assets

21,727 44,840

20,527 27,921

TOTAL

DEFERRED TAX NOTE 13

Accounting policies Deferred tax is recognized on temporary differences between the carrying amount of assets and liabilities in the financial ● statements and the corresponding tax bases, for using the balance sheet liability method and tax rates enacted or nearly enacted at the balance sheet date. Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized to the extent ● that it is probable that the profits will be available against which deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary differences arise from goodwill or from the initial recognition (other ● than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognized for taxable temporary differences arising from investments in subsidiaries and associates, ● and interests in joint ventures and branches, except when the Group is able to control the reversals of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax is calculated at the tax rates that are expected to apply in the periods when the liability is settled or the asset ● realized. Deferred tax is charged or credited to profit or loss in the period, except when it relates to a transaction or an event directly ● credited or charged to equity, in which case the deferred tax is also recognized in equity. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current ● tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

December 31, 2017*

December 31, 2018

(in thousand euros)

Deferred tax assets

140,637 (48,176) 92,461

141,968 (41,735) 100,233

Deferred tax liabilities

NET POSITION

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

214

• BIC GROUP - 2018 REGISTRATION DOCUMENT •