BIC - 2018 Registration document

FINANCIAL STATEMENTS

Consolidated financial statements

As of December 31, 2018, regarding the 2019 exposure, the main significant exchange exposure relates to EUR/USD for 330 million U.S. dollars. This exposure is more than 100% hedged as of December 31, 2018 and related cash flows will occur in 2019. Net income and equity sensitivity to a variance of +/-1% EUR/USD on balance sheet items as of December 31, 2018, as defined in IFRS 7, is not considered to be significant for the Group. As of December 31, 2017, regarding the 2018 exposure, the main significant exchange exposure related to EUR/USD for 336 million

U.S. dollars. This exposure was 100% hedged as of December 31, 2017 and related cash flows took place in 2018.

Main balance sheet items declared in foreign currencies Regarding the balance sheet items, the weight of the different currencies is as follows as of December 31, 2018 for the main non-current items: 23-7

Translated from USD

Translated from BRL

Translated from MXN

Translated from INR

Total

EUR

Other

(in thousand euros)

Net property, plant and equipment

699,755 210,158 157,533

384,031 78,149 20,774

86,508 94,806 52,499

69,686

53,572

48,271 23,310 10,209

57,687 12,843 41,091

Net goodwill

1,050

-

Cash and cash equivalents (excluding bank overdrafts)

24,217

8,743

Employee benefit obligations

(163,823)

(28,821)

(112,176)

-

(3,178)

(2,165)

(17,482)

RELATED PARTIES NOTE 24

Consolidated subsidiaries 24-1 Transactions between the parent company and its subsidiaries as well as transactions between subsidiaries are eliminated through the consolidation process.

Pursuant to IAS 24, BIC Group considers the following to be related parties: all consolidated subsidiaries (see Note 27); ● all members of the Board of Directors (see Corporate ● Governance – section 4.1.1.4. Mandates and duties of the Corporate Officers and Directors as of December 31, 2018) as well as their close relatives; all companies in which a member of the Board of Directors or ● of the Leadership Team has a significant voting right.

24-2

Members of the Board of Directors and of the Leadership Team

Transactions concluded in 2018 with members of the Board of Directors and of the Leadership Team are as follows:

Expenses

Net amount in balance sheet

(in thousand euros)

Short-term employee benefits

8,965 1,309

2,640

Post-employment benefits

18,404

Other long-term benefits

- - -

- - -

Termination benefits

Share-based payments

TOTAL OF TRANSACTIONS

10,274

21,044

Directors’ fees are not included in the above table and are disclosed under Corporate Governance – section 4.2.2.5. Directors’ fees.

Companies in which a member of the Board of Directors or of the Leadership Team has a 24-3 significant voting right

As of December 31, 2018, no such related parties were identified.

240

• BIC GROUP - 2018 REGISTRATION DOCUMENT •