BIC - 2020 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

NOTE 17

PROVISIONS

Accounting policies Provisions are recognized when the Group has a present obligation as a result of a past event, and it is probable that an economic outflow will be required to settle said obligation and such outflow can be reliably mesured. Provisions are measured at the best estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to present value where the effect is material.

Tax and social risks and litigation

Other risks and charges

Llitigation

Product liability

Total

(in thousand euros)

At January 1, 2019

5,907

13,136

1,205

3,329

23,577

Additional provisions

1,942

2,509

(3)

5,289

9,737

Reversals of provisions utilized

(2,267)

(552)

-

(610)

(3,429)

Reversals of provisions not utilized

(234)

(3,152)

(900)

(422)

(4,708)

Exchange differences

(718)

(594)

37

(316)

(1,591)

Reclassification

389

(389)

-

(1,000)

(1,000)

At January 1, 2020

5,019

10,958

339

6,270

22,586

Acquisition of subsidiaries - Djeep

180

10

-

786

975

Additional provisions

762

5,450

-

2,225

8,438

Reversals of provisions utilized

(664)

(1,939)

-

(819)

(3,422)

Reversals of provisions not utilized

(38)

(924)

-

(25)

(987)

Exchange differences

(430)

(1,141)

(28)

(431)

(2,030)

Reclassification

(984)

961

-

23

-

At December 31, 2020

3,845

13,375

311

8,029

25,560

Litigation As of December 31, 2020, the litigation provision mainly represents distributor and commercial agent risks for 1.9 million euros (2.6 million euros as at December 31, 2019). Other risks and charges As of December 31, 2020, other provisions for risks and charges are mainly related to the restructuring provisions for an amount of 4.9 million euros.

As of December 31, 2020, it was not deemed necessary to book provisions for the risks described in Part 1 - “Group Presentation” of the Universal Registration Document that could affect: the Company’s personnel, assets, environment or reputation; ● the Group’s ability to reach its objectives and abide by its ● Values, ethics or the laws and regulations. Tax (excluding income tax) and social risks and litigation Provisions for tax (excluding income tax) and social risks and litigation relate mainly to: tax risks; ● U.S. workers’ compensation. ●

Product liability Product liability mainly relates to the U.S.

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• BIC GROUP - 2020 UNIVERSAL REGISTRATION DOCUMENT •