BIC - 2019 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

24-3

Interest rate risk

As Group Treasury is centralized, SOCIÉTÉ BIC has current accounts with its main subsidiaries. Credit balances in foreign currencies are swapped against the euro for a very short term and the euro is invested in money market UCITS and other short-term investments. Every day, Group Treasury adjusts the liquidity situation of the current accounts as a result of currency swaps realized on the market. This strategy, even though it uses exchange instruments, cannot be considered as a full foreign exchange risk management hedging program, as there is no definitive translation of bank accounts. It only relates to optimization of funding by SOCIÉTÉ BIC through foreign liquidity management.

As of December 31, 2019 BIC Group has no significant debt or related hedging instruments. The exposure to interest rate fluctuations on borrowings is very limited. All local funding needs are directly indexed on a variable rate. Borrowers’ positions are insignificant and are of too limited a time scale to require any relevant hedging.

Impact of interest rate and foreign exchange risk hedging on the consolidated financial statements as of 24-4 December 31, 2019

The following amounts have been booked as the fair value of derivatives as of December 31, 2019 (in thousand euros) :

Net financial Income/ (expense) before tax – Note 6

Other compre hensive income before tax  (a)

Income from operations – Note 4

Non- current assets

Hedge qualification/ hedged risk

Current assets  (b)

Current Liabilities

Non-current Liabilities

Derivative instruments and revaluation

Hedging revaluation impact Commercial flows

Cash flow hedge/Foreign exchange risk Net investment/Foreign exchange risk

-

822  

(1,808)  

2,560  

220  

(6,009)  

(7)  

Dividends

-

-

2,681  

-

-

(1,250)  

(37)  

Subtotal (1)

-

822  

872  

2,560  

220  

(7,259)  

(44)  

Revaluation of cross-currency swaps backed by cash positions in foreign currencies

At fair value through P&L/Foreign exchange risk

(147) 

 -  

 -  

  138  

 -  

(211)  

-

Subtotal (2)

(147) 

 -  

 -  

  138  

 -  

(211)  

-

TOTAL (1) + (2) (44)   This corresponds to mark-to-market of hedging instruments in the portfolio at December 31, 2019 restated for the reversal of the mark-to-market of the portfolio of hedging instruments (a) as of December 31, 2018. Including options not yet exercised held by SOCIÉTÉ BIC representing current assets for 926 thousand euros. (b) (147)   822   872   2,698   220   (7,470)  

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •