BIC - 2019 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

NOTE 8

EARNINGS PER SHARE GROUP SHARE

Earnings per share (Group share) and diluted earnings per share (Group share) correspond to the Group net income divided by the relevant number of shares. The number of shares used to calculate the earnings per share (Group share) is the weighted average number of ordinary shares outstanding during the period less the weighted average number of shares held in treasury stock by SOCIÉTÉ BIC during the period and presented as a reduction to equity.

The number of shares used to calculate the diluted earnings per share (Group share) is the weighted average number of shares potentially in circulation during the period, which corresponds to the number of shares used for basic earnings per share Group share, adjusted for the dilutive effect of stock options. As of December 31, 2019, there are no shares with relutive impact and the maximum dilutive effect from unvested free shares is around 0.3% of the share capital.

December 31, 2019

December 31, 2018

Numerator (in thousand euros) Net income Group share from continuing operations Denominator (in number of shares) Weighted average number of ordinary shares in circulation

173,350

176,095 

45,598,109

45,056,076 

Dilutive effect of free shares

208,798

118,637 

Diluted weighted average number of ordinary shares in circulation

45,806,907

45,174,713 

Earnings per share Group share from continuing operations (in euros) Earnings per share Group share from continuing operations

3.80

3.91 

Diluted earnings per share Group share from continuing operations

3.78

3.90 

NOTE 9

PROPERTY, PLANT AND EQUIPMENT

Accounting policies Land and buildings held by the Group for use in the production or supply of goods or services, or for administrative purposes, are recognized in the balance sheet at their initial acquisition cost, less any accumulated depreciation and impairment losses. Depreciation is booked to profit or loss. Property, plant and equipment in the course of construction for production, rental or administrative purposes, are carried at cost, less any identified impairment loss. Depreciation of these assets, on the same basis as other property, plant and equipment, starts when the assets are ready for their intended use. Fixtures and equipment are stated at initial acquisition cost less accumulated depreciation and impairment losses. Depreciation is booked to profit or loss so as to reduce the carrying amount of assets, other than land and properties under construction, over their estimated useful life, using the straight-line method. Leases that convey to the customer ("lessee") the right to control the use of an identified asset for a period of time in exchange for consideration fall within the scope of IFRS 16 "Leases". The lessee entities of the Group recognize a right of use under assets with a lease liability as a counterpart, for all leases, whether operating or financial leases. The term used corresponds to the non-cancellable period, the periods covered by an extension option, the exercise of which is reasonably certain, and the periods covered by a termination option, the non-exercise of which is reasonably certain. For 3,6,9 leases in France, the contract is generally enforceable for 9 years. The Group applies the exemptions permitted by IFRS 16 for contracts with a duration of less than 12 months or where the underlying asset is of low value (less than 5,000 U.S. dollars). The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognized in profit or loss. The depreciation method is the straight-line method, on the following basis:

Buildings: 25 years; ● Fixtures, machinery and equipment: 5 to 8 years; ● Vehicles: 3 to 5 years. ●

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •