BIC - 2018 Registration document

FINANCIAL STATEMENTS

Statutory Auditors' Report on the financial statements

JUSTIFICATION OF ASSESSMENTS - KEY AUDIT MATTERS III. In accordance with the requirements of Articles L.823-9 and R.823-7 of the French Commercial Code (code de commerce) relating to the justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement that, in our professional judgment, were of most significance in our audit of the financial statements of the current period, as well as how we addressed those risks. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on specific items of the financial statements.

Valuation of investments Risk identified:

As at 31 December 2018, investments are recorded in the balance sheet at a net carrying amount of €1,174.4 million. They are recorded at the value they were brought into assets. An impairment is booked when the value in use of an investment is below its purchase value. As disclosed in note 2.d) of the notes to the financial statements, the value in use is determined in reference to shareholders' equity of the relevant investment, adjusted to take into consideration the importance of the Company to the Group and its development and profit perspectives. Given the weight of investments in the balance sheet, we considered the determination of the value in use of investments to be a key audit matter presenting a risk of material misstatement. Our answer: We tested the operation of Group controls covering the process for determining the value in use of investments. Our procedures notably consisted in: For the valuation based on the shareholders' equity:, ● Controlling the shareholders’ equity of the relevant investment with the financial statements of the different entities, • For the valuation based on the forecast assumptions: ● Testing of internal control related to the preparation of the future cash flows forecast, • Verifying consistency of the main data used in the future cash flows determination comparing them with the historical • performance and the entity strategical plan validate by the appropriate level of governance, Corroborating the perpetual growth rate and discount rate used in the impairment test with the expertise of our valuation • specialists.

IV.

SPECIFIC VERIFICATIONS OF THE MANAGEMENT REPORT AND OF THE OTHER DOCUMENTS PROVIDED TO SHAREHOLDERS

We have also performed, in accordance with professional standards applicable in France, the specific verifications required by French law by the legal and regulated texts.

Information given in the management report and in the other documents with respect to the financial position and the financial statements

We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in the management report of the Board of Directors and in the other documents provided to Shareholders with respect to the financial position and the financial statements. We attest to the sincerity and consistency with the financial statements of the information on the payment periods mentioned in article D. 441-4 of the French Commercial Code. Report on corporate governance We attest that the Board of Directors’ report on corporate governance sets out the information required by Articles L. 225-37-3 and L. 225-37-4 of the French Commercial Code. Concerning the information given in accordance with the requirements of Article L. 225-37-3 of the French Commercial Code (code de commerce) relating to remunerations and benefits received by the directors and any other commitments made in their favour, we have verified its consistency with the financial statements, or with the underlying information used to prepare these financial statements and, where applicable, with the information obtained by your company from controlling and controlled companies. Based on this work, we attest the accuracy and fair presentation of this information.

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •