BIC - 2018 Registration document

FINANCIAL STATEMENTS

Consolidated financial statements

The movement for the year in the Group’s deferred tax position was as follows:

Notes

December 31, 2018

(in thousand euros)

At December 31, 2017

92,461

Argentina Hyperinflation

(484) (604) (223) 8,186

Deferred tax income/(expense) for the period  (a)

CF

BIC Sport disposal

Booked in Shareholders‘ equity

Exchange differences

897

At December 31, 2018

100,233

Excluding amounts booked to provision for risks and charges. (a)

Notes

December 31, 2017*

(in thousand euros)

At January 1, 2017

123,311

Deferred tax income/(expense) for the period  (a)

12,171

Booked in Shareholders‘ equity

(29,389) (14,014)

Exchange differences

Reintegration of assets held for sale at December 31, 2016 not sold in 2017

382

At December 31, 2017

92,461

Restated for IFRS 15 – Revenue from Contract with Customers. * Excluding amounts booked to provision for risks and charges. (a)

Origin of deferred tax

December 31, 2017*

December 31, 2018

(in thousand euros)

Pension and other employee benefits

45,300 35,676

36,544 32,266

Intra-Group profit elimination

Tax losses carried forward

5,505

5,687

Cello trademark

(15,830) 21,810 92,461

(15,210)

Other temporary differences

40,946

NET DEFERRED TAX

100,233

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

CHANGE IN NET WORKING CAPITAL NOTE 14

Accounting policies Inventories are stated at the lower of cost and net realizable value. Cost comprises direct raw material costs and, where ● applicable, direct labor costs, as well as those overheads that have been directly incurred in bringing the inventories to their present location and condition. Cost is generally calculated using the weighted average cost method. Net realizable value represents the estimated selling price in the normal course of business less all estimated costs of completion and costs to be incurred in the sale (marketing, selling and distribution). Impairment of financial assets (particularly trade receivables) is based on expected credit losses (instead of observed), starting as ● from initial recognition. To determine the expected credit losses for the portfolio, the Group has chosen the simplified method and uses a provision matrix ● based on its historical observed default rates over the expected remaining life of the trade receivables, which is adjusted for forward-looking estimates. Trade payables are initially measured at fair value. ●

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •