BIC - 2020 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

Other In 2018, one marketing – related intangible asset was preliminary identified for a preliminary amount of 458.3 million Kenyan shillings (3.9 million euros at December 31, 2018) – This intangible asset was amortized over a three year-period. This asset was allocated to the Kenyan subsidiary cash-generating units (BIC East Africa). As of December 31, 2020, the net amount of this intangible asset represents 1.1 million euros.

Following the acquisition of Djeep, the purchase price allocation was performed (see note 1). Intangible assets were identified amounting 12.0 million at December 31, 2020, mainly customer relationships for an amount of 11.5 million. This customer relationship is amortized over a period of fifteen years. This asset is allocated to the cash-generating units constituted by the subsidiary Djeep. As of December 31, 2020, the net amount of this asset was 11.0 million euros.

NOTE 12

OTHER NON-CURRENT ASSETS

December 31, 2020

December 31, 2019

(in thousand euros)

Guarantee deposits

4,391

4,265

Deferred pensions

15,471

555

Deferred compensation in the U.S. (other than pensions)

9,271

9,744

Other non-current assets

12,616

9,131

TOTAL

41,781

23,695

The decrease in deferred pensions is mainly explained by U.S. Salaried Pension asset movement to a liability position as of December 31, 2020.

NOTE 13

DEFERRED TAX

Accounting policies Deferred tax is recognized on temporary differences between the carrying amount of assets and liabilities in the financial ● statements and the corresponding tax bases using the balance sheet liability method, and tax rates enacted or nearly enacted at the balance sheet date. Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized to the extent ● that it is probable that profits will be available against which deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary differences arise from goodwill or from the initial recognition (other ● than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognized for taxable temporary differences arising from investments in subsidiaries and associates, and ● interests in joint ventures and branches, except when the date on which temporary differences will be reversed can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax is calculated at the tax rates that are expected to apply in the periods when the liability will be settled or the asset ● realized. Deferred tax is charged or credited to profit or loss in the period, except when it relates to a transaction or an event directly ● credited or charged to equity, in which case the deferred tax is also recognized in equity. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax ● liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Following the application of IFRIC 23 “Uncertainty over income tax treatments” as of January 1, 2019, uncertain tax positions ● relating to IAS 12 income taxes are recognized as deferred tax liabilities (respectively assets) if it is considered probable that the tax authorities will reject (accept) the position.

December 31, 2020

December 31, 2019

(in thousand euros)

Deferred tax assets

134,339

114,302

Deferred tax liabilities

(55,374)

(60,914)

NET POSITION

78,966

53,388

236

• BIC GROUP - 2020 UNIVERSAL REGISTRATION DOCUMENT •