BIC - 2019 Universal Registration Document

FINANCIAL STATEMENTS

Parent company financial statements of SOCIÉTÉ BIC (French GAAP)

NOTES TO THE OFF-BALANCE SHEET COMMITMENTS

NOTE 19

OFF-BALANCE SHEET FINANCIAL INSTRUMENTS

The following are SOCIÉTÉ BIC’s main off-balance sheet financial instruments:

19-1

Currency derivatives

Hedge nominals denominated in currencies other than the euro are converted to euros at December 31, 2019 closing rates. The valuation of the hedges is caluculated in accordance with market practices in terms of inputs (spot, yield curves, volatility curves) and calculation models.

Forward portfolio detail

Nominal (euros)

Market value (euros)

Hedging support

Instrument

Commercial Flows 2020

328,867,284

(2,265,631)

Forward

Commercial Flows 2021

22,250,510

212,343

Forward

Intra-Group Dividends

33,349,008

(1,286,455)

Forward

Loans/Borrowings

100,041,734

(72,784)

Currency Swap

TOTAL

484,508,535

(3,412,528)

Options portfolio detail

Options purchased Nominal (euros)

Options sold Nominal (euros)

Market value (euros)

Hedging support

Instrument

Commercial Flows 2020

100,303,233

154,418,608

(1,184,229)

Option

Commercial Flows 2021

- 

- 

- 

Option

Intra-Group Dividends

-

-

-

Option

TOTAL

100,303,233

154,418,608

(1,184,229)

As of December 31, 2019, SOCIÉTÉ BIC had contracted: derivative contracts (foreign currency forwards and options) ● maturing in 2020 and 2021 for an equivalent of 605.8 million euros in gross nominal value. These contracts hedge, on the basis of forecast cash flow, a significant part of the Group’s foreign currency transaction risks. The foreign currency transactions are denominated in U.S. dollars, Pounds sterling, Canadian dollars, Australian dollars, New Zealand dollars, Japanese yen, Swiss francs, Polish zloty, Romanian lei and Mexican pesos. The market value of these contracts is negative for 3.2 million euros; derivatives contracts (foreign currency forwards and options) ● maturing in 2020 for an equivalent of 33.3 million euros in gross nominal value, dedicated to the hedge of the intra-Group dividends received in foreign currencies. The market value of these contracts is negative for 1.3 million euros;

foreign currency swaps for an equivalent of 100 million euros, ● in connection with the Group’s foreign currency liquidity and intra-Group foreign currency loans and borrowings. The market value of these contracts is negative for 72,784 euros. For 2020, more than 90% of the Group’s foreign currency transaction exposure is hedged.

19-2

Interest rate derivatives

As of December 31, 2019, SOCIÉTÉ BIC does not have any interest rate derivatives. All local funding needs are directly indexed on a variable rate. Borrowers’ positions are insignificant and are of a too limited timescale to require any hedging.

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •