BIC - 2019 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

The excess cash and the funding needs of the Group are directly managed by the Treasury Department, following prudent policy guidelines, that aim for capital security and to maintain a satisfactory liquidity position. Excess cash is mainly invested in money market UCITS, negotiable debt securities and cash equivalents whose volatility is below 0.5, with a recommended holding period of less than three months. The more structural portion of the cash can be invested in money market funds qualified as “dynamics”, with a holding period that can be in excess of six months.

All investments are valued mark-to-market twice a month by the Group Treasury Department and the target is to reach an average annual performance that outperforms the capitalized Eonia rate. As of December 31, 2019, the total investments managed by Group Treasury amounted to 3.6 million euros divided into two individual positions. They consist in mutual UCITS not benefiting from the “Cash and Cash Equivalent” qualification. It should be noted that, given the negative rates currently applying on short-term investments in euros, it seems pertinent to simply place available cash in a bank account.

December 31, 2019

Note

December 31, 2018

(in thousand euros)

Cash equivalents: marketable securities

39,704

50,391

Cash

117,829

 148,165

CASH AND CASH EQUIVALENTS, EXCLUDING BANK OVERDRAFTS

20

157,533

 198,555

Credit risk 22-5 The Group’s credit risk is primarily attributable to its trade and other receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. The Group has no significant concentration of credit risk, with exposure spread over a large number of customers. Trade and other receivables comprise: gross amounts receivable for the sale of goods as well as other ● receivables, mainly related to VAT credits. These trade and other receivables are short-term assets, with maturity dates within 12 months;

an allowance for estimated unrecoverable amounts from the ● sale of goods. This allowance has been determined by reference to past default experience and based on the current economic environment. It is booked in a separate account. The Group considers that the carrying amount of trade and other receivables is close to their fair value. Receivables past due but not impaired are not significant at Group level as of December 31, 2019. Maximum exposure to credit risk corresponds to the net booked value of financial assets in the balance sheet, including derivatives with positive market values (see table below):

December 31, 2019

Note December 31, 2018

(in thousand euros)

Gross trade receivables Not yet due or past due for less than 60 days

451,856

460,024  

Past due for 60 to 90 days

11,309

 11,773  

Past due for 90 to 120 days

7,740

 9,798  

Past due for more than 120 days

23,602

 33,753  

Total gross trade receivables

494,507

 515,348  

Doubtful receivables

11,987

 12,679  

Total before allowance (A)

506,494

 528,026  

Allowance on trade receivables not yet due or past due for less than 60 days past due

(4,644)

(5,215) 

Allowance on trade receivables past due for 60 to 90 days past due

(284)

(256) 

Allowance on trade receivables past due for 90 to 120 days past due

(396)

(353) 

Allowance on trade receivables past due for more than 120 days past due

(20,679)

(22,822) 

Total dépréciation (B)

(26,003)

(28,649) 

Allowance on specific trade receivables

(21,387) (4,616) 54,192

(23,840)  (4,809)   46 232  

Allowance on statistically calculated trade receivables

Other receivables (C)

TRADE ANDOTHER RECEIVABLES – NET (A) + (B) + (C)

14

534,683

 545 609

223

• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •