BIC - 2018 Registration document

FINANCIAL STATEMENTS

Parent company financial statements of Société Bic (French GAAP)

Financial investments g) Financial investments comprise investments in marketable securities, and SOCIÉTÉ BIC shares bought back pursuant to Article L. 225-209 of the French Commercial Code (Code de commerce) . Treasury shares are valued at purchase cost. An impairment provision is booked when the probable trading value (based on the average stock market price during the last month of the fiscal year or the exercise price of the options for which they were purchased) at year-end is less than the purchase cost. and charges Provisions for contingencies and charges are liabilities for which maturity or amounts cannot be precisely measured. They are calculated using the best estimate of funds required to settle the liability. Provisions for contingencies h)

Unrealized gains on foreign exchange are booked as unrealized gains, while unrealized losses on foreign exchange are booked as unrealized foreign exchange losses with a provision for contingencies and losses. Profit and loss on foreign exchange for current accounts are directly recognized in the profit and loss account and are not the subject of a translation difference. According to the new ANC n°2015-05 related to the accounting of derivative instruments, applicable as of January 1, 2017, the method of accounting for derivative instruments varies according to whether the derivative qualifies for hedge accounting or not. For non-hedged transactions, the global foreign exchange position is only to calculate the provision for foreign exchange losses. It is calculated currency-by-currency and hedging instruments and hedged items (for the hedged portion) are excluded from this global foreign exchange position. The maturity dates of items included in the position should be in the same fiscal year and only realizable items should be included (receivables, payables, derivative instruments, etc.). Cash and cash equivalents are excluded. For hedged transactions, the currency hedging impact is only recognized in the income statement when receivables (or payables) are settled.

i)

Borrowings

Borrowings in foreign currency are translated at the closing exchange rate.

NOTES TO THE BALANCE SHEET

NOTE 3

NON-CURRENT ASSETS

Gross value as of Dec. 31, 2017

Gross value as of Dec. 31, 2018

Acquisitions

Disposals

(in thousand euros)

Research and development expenses

1,745

-

-

1,745

Other intangible assets

63,524 65,269

6,384 6,384

(19,517)

50,391 52,136

TOTAL INTANGIBLE ASSETS

(19,517)

Land

1,345

-

-

1,345

Buildings

16,407 12,724

59

(110)

16,356 13,656

Industrial fixtures and equipment

993 303

(61)

Other property, plant and equipment

6,400

(184)

6,519

Property, plant and equipment under construction TOTAL PROPERTY, PLANT AND EQUIPMENT

584

1,597 2,952

(1,481)

700

37,460

(1,836)

38,576

Equity Investments  (a)

1,286,072

23,027

(8,881)

1,300,218

Treasury Shares  (b)

66,628

107,199

(115,745)

58,082

Loans and other long-term investments TOTAL LONG-TERM INVESTMENTS

224

138

-

362

1,352,924

130,364

(124,626)

1,358,662

Equity Investments are detailed in Note 23. (a) These refer to 637,680 shares for the free share plans and 14,733 shares related to the liquidity contract. (b)

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •