BIC - 2019 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

At December 31, 2018

United States

United Kingdom

France

Discount rate

4.22%

2.85%

1.50%

Inflation rate

2.50%

3.55%

1.50%

Expected rate of salary increases

3.60%

N/A

1.75%

Average plan duration (years)

13.2

17.0

11.6

Sensitivity of the obligation to a change in inflation rate According to the Group’s estimates, a +/-0.5% change in the inflation rate would result in a change in the obligations for the

The discount rates for our U.S. and UK retirement plans were developed using the Mercer Pension Discount Yield Curve, which is built from the yields of high quality (AA) corporate bonds. For our other international plans, the discount rates were set by benchmarking against corporate bonds rated AA or better on the various markets. The discount rate for the French obligation is based on the IBOXX AA 10+ index. The rate shown for France is that of the main plan (retirement indemnities). The rate shown for the U.S. is for the main plan, each U.S. plan being valued with a specific discount rate (from 2.69% to 3.33%). Sensitivity of the obligation to a change in discount rate According to the Group’s estimates, a +/-1% change in the discount rate would result in a change of, respectively, -12.78% and +15.48% in the obligations. This change would not, however, fully impact the Group net liability on employee benefits, as a change in plan assets may partly offset the impact.

following countries, of respectively: +0.14% and -0.19% for the U.S.; ● +5.19% and -4.57% for the U.K. ●

This change would not, however, fully impact the Group net liability on employee benefits, as a change in plan assets fair value may partly offset the impact. Cash Flows for future years The Group is expected to pay 21.5 million euros in employer contributions for 2020. The expected total benefit payments, in million euros, is:

2020

40

2021

32

2022

32

2023

37

2024

34

Beyond 2024

186

18-7

Information by geography

December 31, 2019 (in thousand euros)

Obligation

Plan assets

Net liability

Europe

46,732

7.3% 

9,528 

2.0% 37,204 

22.7% 

United Kingdom

47,253

7.4% 

41,685 

8.8%

5,569 

3.4% 

North America

536,665

84.1% 

423,069 

89.1% 113,595 

69.4% 

Other countries

7,546

1.2% 

326 

0.1%

7,220 

4.4% 

TOTAL

638,196

100% 

474,608 

100% 163,588 

100% 

At December 31, 2018 (in thousand euros)

Obligation

Plan assets

Net liability

Europe

40,553

7.3%

9,092

2.3%

31,461

19.6%

United Kingdom

50,739

9.1%

37,273

9.4%

13,466

8.4%

North America

459,388

82.3% 350,612

88.3% 108,786

67.6%

Other countries

7,436

1.3%

264

0.1%

7,174

4.5%

TOTAL

558,127

100% 397,240

100% 160,887

100%

220

• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •