BIC - 2018 Registration document

FINANCIAL STATEMENTS

Consolidated financial statements

OTHER CURRENT LIABILITIES NOTE 19

December 31, 2017*

December 31, 2018

(in thousand euros)

Social liabilities

96,470 10,893 134,883 242,245

90,557 10,741 157,809 259,107

Other tax liabilities

Other current liabilities*

OTHER CURRENT LIABILITIES

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

DIVIDENDS NOTE 20

For the 2017 fiscal year, an ordinary dividend of 3.45 euros per share was distributed to Shareholders on May 30, 2018. For the 2016 fiscal year, an ordinary dividend of 3.45 euros per share was distributed to Shareholders on May 24, 2017.

EXPOSURE TO MARKET RISKS NOTE 21

Counterpart risk 21-1 All financial instruments are set up with banking institutions awarded top ratings by international rating agencies, making counterparty risk very low. The minimum Standard & Poor’s long-term rating of the main banking counterparties is A-, the rating range being from A+ to A-. Cash investment decisions are subject to strict counterparty risk assessment (both depositories and custodians). The main part of the portfolio as of December 31, 2018 is on investment grade-rated supports. Counterparty risk is estimated not significant as of December 31, 2018.

Liquidity risk 21-4 The BIC Group manages its equity in order to keep a positive and liquid cash position, so as to be able to achieve its development and/or external growth strategy.. The excess cash and the funding needs of the Group are directly managed by the Treasury Department, following prudent policy guidelines, that aim for capital security and to maintain a satisfactory liquidity position. Excess cash is mainly invested in money market UCITS, negotiable debt securities and cash equivalents whose volatility is below 0.5, with a recommended holding period of less than three months. The more structural portion of the cash can be invested in money market funds qualified as “dynamics”, with a holding period that can be in excess of six months. All the investments are valued mark-to-market twice a month by the Group Treasury Department and the target is to reach an average annual performance that outperforms the capitalized Eonia rate. As of December 31, 2018, the total invested by Group Treasury amounted to 4.4 million euros divided into three individual positions. They consist in mutual UCITS not benefiting from the “Cash and Cash Equivalent” qualification. It should be noted that, given the negative rates currently applying on short-term investments in euros, it seems pertinent to simply place available cash in a bank account.

21-2

Foreign exchange risk

See Note 23-2.

21-3

Interest rate risk

See Note 23-3.

December 31, 2017

December 31, 2018

(in thousand euros)

Cash equivalents: marketable securities

51,919

39,704

Cash

136,707 188,626

117,829 157,533

CASH AND CASH EQUIVALENTS, EXCLUDING BANK OVERDRAFTS

227

• BIC GROUP - 2018 REGISTRATION DOCUMENT •