BIC - 2019 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

NOTE 6

FINANCIAL INCOME

Accounting policies Interest income is accrued on a time basis, by reference to the effective yield on the asset, namely the interest rate , which exactly ● discounts estimated future cash receipts over the expected life of the financial asset to the asset’s initial value. Dividend income from investments is recognized when the Shareholder’s right to receive payment has been established. ● Considering the nature of the Group’s activities, interest and dividends received are disclosed as financial income in the income ● statement. All borrowing costs are recognized as expenses in the period in which they are incurred. ● For lease contracts falling within the scope of IFRS 16, the rental expense is replaced by a depreciation charge on the right of use ● booked in operating expenses (see Note 4) and an interest expense recorded in financial expense.

December 31, 2019

December 31, 2018

(in thousand euros)

Interest income from cash and cash equivalents

3,269

2,843

Interest on bank deposits

2,917

3,050

Income from cash and cash equivalents

6,186

5,893

Interest expense

(2,751)

(3,264)

Cost of financial debt – IFRS 16

(1,481)

(1,696)

Argentina hyperinflation accounting – IAS 29

(5,880)

(5,547)

Net financial foreign exchange difference

6,745

3,339

Net finance income/(Net finance costs)

(3,367)

(7,169)

FINANCE (COSTS)/REVENUE

2,819

(1,276)

The decrease in financial income in 2019 compared to 2018 comes from several factors: during 2018, the appreciation of the U.S. dollar against the ● euro and Brazilian real generated a very favorable impact, on the valuation of financial assets denominated in U.S. dollars;

2019 was negatively impacted by Argentina hyperinflation ● accounting for 5.5 million euros versus 5.9 million euros in 2018; income from cash and cash equivalents decreased compared ● to the previous period due to lower interest rates.

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •