BIC - 2020 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

Liquidity risk 22-4 The BIC Group manages its equity such as to maintain a positive and liquid cash position, so as to be able to carry out its development and/or external growth strategy. The excess cash and the funding needs of the Group are directly managed by the Treasury Department, following prudent policy guidelines, that aim for capital security and to maintain a satisfactory liquidity position. Excess cash is mainly invested in money market UCITS, negotiable debt securities and cash equivalents whose volatility is below 0.5, with a recommended holding period of less than three months. The more structural portion of the cash can be invested in money market funds qualified as “dynamics”, with a holding period that can be in excess of six months. All investments are valued mark-to-market twice a month by the Group Treasury Department and the target is to reach an average annual performance that outperforms the capitalized Eonia rate.

As of December 31, 2020, total investments managed by Group Treasury amounted to 50.77 million euros, divided between three positions. 10 million of this is a term account with monthly renewal and 40.77 million in units of two dollar-denominated money market funds classified as "Cash and Cash Equivalent". It should be pointed out that in view of the negative interest rates currently being paid on short-term investments in euros, it makes sense to keep cash on hand simply in a bank account. Indeed, thanks to a regular dialogue and a good management of the allocation of its surpluses between its historical banks, to date the company has not been taxed on its excess cash on current accounts . As previously mentioned in Note 6, BIC Group has also lowered its liquidity risk by setting up a confirmed credit line of 200 million euro for a period of three years, which secures a NeuCP program of 200 million euro, also with an initial issuance in September 2020. The market has been very favorable to the BIC Group's entry into this short-term debt segment.

December 31, 2020

December 31, 2019

(in thousand euros)

Cash equivalents: marketable securities

50,391

118,206

Cash

148,165

147,537

CASH AND CASH EQUIVALENTS, EXCLUDING BANK OVERDRAFTS

198,555

265,744

22-5

Credit risk

December 31, 2020

Note

December 31, 2019

(in thousand euros)

Gross trade receivables Not yet due or past due for less than 60 days

460,024

318,508

Past due for 60 to 90 days

11,773

8,131

Past due for 90 to 120 days

9,798

6,690

Past due for more than 120 days

33,753

28,990

Total gross trade receivables

515,348

362,319

Doubtful receivables

12,679

13,711

Total before allowance (A)

528,026

376,030

Allowance on trade receivables not yet due or past due for less than 60 days

(5,215)

( 6,171)

Allowance on trade receivables past due for 60 to 90 days

(256)

( 127)

Allowance on trade receivables past due for 90 to 120 days

(353)

( 340)

Allowance on trade receivables past due for more than 120 days

(22,822)

( 24,371)

Total allowance (B)

(28,649)

( 31,050)

Allowance on specific trade receivables

(23,840) (4,809) 46,232

( 25,142) ( 5,908) 64,644

Allowance on statistically calculated trade receivables

Other receivables (C)

TRADE ANDOTHER RECEIVABLES - NET (A)+(B)+(C)

11

545,609

409,625

251

• BIC GROUP - 2020 UNIVERSAL REGISTRATION DOCUMENT •