BIC - 2020 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

NOTE 6

FINANCIAL INCOME

Accounting policies Interest income is accrued on a time basis, by reference to the effective yield on the asset, namely the interest rate, which exactly ● discounts estimated future cash receipts over the expected life of the financial asset to the asset’s initial value. Dividend income from investments is recognized when the Shareholder’s right to receive payment has been established. ● Considering the nature of the BIC Group’s activities, interest and dividends received are disclosed as financial income in the income ● statement. All borrowing costs are recognized as expenses in the period in which they are incurred. ● For lease contracts falling within the scope of IFRS 16, the rental expense is replaced by a depreciation charge on the right of use ● booked in operating expenses (see Note 4) and an interest expense recorded in financial expense.

December 31, 2020

December 31, 2019

(in thousand euros)

Interest income from cash and cash equivalents

2,843

1,728

Interest on bank deposits

3,050

1,390

Income from cash and cash equivalents

5,893

3,118

Interest expense

(3,264)

(3,204)

Cost of financial debt – IFRS 16

(1,696)

(1,352)

Argentina hyperinflation accounting - IAS 29

(5,547)

(3,266)

Net financial foreign exchange difference

3,339

3,285

Net finance income/(Net finance costs)

(7,169)

(4,536)

FINANCE (COSTS)/REVENUE

(1,276)

(1,418)

Financial income remained stable in 2020 compared to 2019. It comes from several factors: 2020 was less impacted by Argentina hyperinflation ● accounting than in 2019; income from cash and cash equivalents decreased compared ● to the previous period due to lower interest rates.

In fiscal year 2020, BIC Group has secured its access to short and medium-term liquidity through the implementation of a three-year, 200 million euro Revolving Credit Facility (R.C.F.) and a 200 million euro NeuCP program. To date, the R.C.F. has not yet been drawn down, and NeuCP's outstanding balance amounts to 75 million euro. Given the special interest rate environment currently prevailing in the euro zone, NeuCP's issues have taken place in negative territory and therefore do not create any additional financial expenses.

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• BIC GROUP - 2020 UNIVERSAL REGISTRATION DOCUMENT •