BIC - 2019 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

Gross value

Impairment loss

Net value

(in thousand euros)

At January 1, 2018

290,391

(13,540)

276,851

Kenya acquisition

5,556

-

5,556

Argentina hyperinflation

2,110

-

2,110

Impairment loss - Cello

-

(68,709)

(68,709)

Impairment loss - Pimaco

-

(5,466)

(5,466)

Exchange differences

(598)

414

(184)

At January 1, 2019

297,459

(87,301)

210,158

Nigeria acquisition

14,948  

-  

14,948  

Argentina hyperinflation

118  

-  

  118  

Impairment loss - Cello

-  

(23,493) 

(23,493) 

Exchange differences

1,212  

762  

1,974  

At December 31, 2019

313,737  

(110,032)  

203,705  

The balance, as of December 31, 2019, includes the following principal net goodwill:

At December 31, 2019

December 31, 2018

(in thousand euros)

BIC CORPORATION (a)  – Stationery

51,904

52,691

BIC CORPORATION (a) – Lighters

41,190

41,871

Cello Pens

23,919

-

BIC Violex

70,516

70,871

Kenya

5,550

5,675

PIMACO (a)

-

- 

Nigeria

-

14,724

Other (a)

17,079

17,874

TOTAL

210, 158

203,705

(a) These goodwill amounts are linked to cash-generating units represented by distribution subsidiaries.

To perform the impairment tests, the Group used the following discount and perpetual growth rates:

Weighted average cost of capital (WACC) before tax

Perpetual growth rate

2019

2019

2018

2018

BIC CORPORATION

Stationery

9.7%

9.5%

1.5%

1.5% 

Lighters

9.4%

9.2%

1.5%

1.5%

Cello Pens

14.9%

11.9%

4.8%

4.0%

BIC Violex

14.3%

13.1%

1.9%

 1.9%

Kenya

-

15.7%

-

5.0% 

PIMACO

23.9%

20.4%

-15.0%

 -1.5%

Each goodwill item has been allocated to a cash-generating unit (“CGU”) representing the lowest level at which goodwill is monitored by the Group. The goodwill on BIC CORPORATION is thus mainly allocated to cash-generating units linked to the distribution by BIC CORPORATION of stationery products and lighters. The goodwill on Cello Pens is allocated to the cash-generating units linked to the production and distribution of stationery products by Cello. The remaining goodwill on BIC Violex is allocated to the cash-generating unit linked to shavers developed and/or produced

by BIC Violex and sold all over the world. This cash-generating unit also includes the portion of BIC CORPORATION goodwill allocated to shavers. The goodwill on the Kenya subsidiary is allocated to the cash-generating unit linked to the production and distribution of stationery products by BIC East Africa. The goodwill on the Nigeria subsidiary is allocated to the cash-generating unit linked to the production and distribution of stationery products by Lucky Stationary Limited. As every year, as of June 30, 2019, the Group performed annual impairment tests on these goodwill amounts.

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •