BIC - 2019 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

Reconciliation between theoretical income tax expense and effective income tax expense:

December 31, 2019

December 31, 2018

(in thousand euros)

Income before tax

261,587

251,445 

Tax rate

34.43%

34.43 % 

Theoretical tax expense

90,064

86,572 

Effects of: differences in tax rates •

(22,199)

(16,942) 

income taxed at reduced rate •

(4,765)

 (10)

initial recognition exemptions •

35,743

10,490 

intra-Group accruals eliminations •

(1,058)

(3,588) 

tax assets not recognised on tax losses •

1,456

6,135 

tax assets/liabilities not recognised on prior years •

537

5,698 

tax assets recognised on prior year tax losses •

448

327 

tax credits •

(13,294)

(13,914) 

foreign exchange differences •

1,305

582 

INCOME TAX EXPENSE

88,237

75,350 

EFFECTIVE TAX RATE

33.73%

29.97% 

In addition, as of December 31, 2019, the Group has 40.0 million euros of unrecognized deferred tax assets relating to unused tax losses, versus 27.3 million euros in 2018.

7-2

Deferred and current tax recognized in other comprehensive income

Accounting policies See: Note 13

Deferred and current taxes recognized in other comprehensive income result from the following items:

December 31, 2019

Other comprehensive income

Deferred taxes

(in thousand euros)

Actuarial differences on defined-benefit plans (1)

(8,092) 

 1,809

Other comprehensive income (2)

6,637 

1,805 

Cash flow hedge

 872

(434) 

Foreign exchange impact

5,761 

2,239 

Other

5 

(1) 

TOTAL (1) + (2)

(1,455) 

3,614 

December 31, 2018

Other comprehensive income

Deferred taxes

(in thousand euros)

Actuarial differences on defined-benefit plans (1)

5,823

(1,384)

Other comprehensive income (2)

(56,592)

9,575

Cash flow hedge

(23,344) (33,244)

8,177 1,638

Foreign exchange impact

Other

(3)

(245)

TOTAL (1)+(2)

(50,769)

8,191

202

• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •