BIC - 2020 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, 2020 closing rates. The valuation of the hedges is calculated in accordance with market practices in terms of inputs (spot, yield curves, volatility curves) and calculation models.

Forward portfolio detail

Nominal (in euros)

Market value (in euros)

Hedging support

Instrument

Commercial Flows 2021

331,546,806

21,752,246

Forward

Commercial Flows 2022

1,629,859

(8,015)

Forward

Intra-Group Dividends

8,149,295

664,298

Forward

Loans/Borrowings

51,027,941

92,853

Currency Swap

TOTAL

392,353,902

22,501,381

Options portfolio detail

Options purchased Nominal (in euros)

Options sold Nominal (in euros)

Market value (in euros)

Hedging support

Instrument

Commercial Flows 2021

43,726,308

51,859,744

579,445

Option

TOTAL

43,726,308

51,859,744

579,445

As of December 31, 2020, SOCIÉTÉ BIC had contracted: derivatives contracts (foreign currency forwards and options) ● maturing in 2021 and 2022 for an equivalent of 428.8 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 yens, Swiss francs, Polish zlotys, Romania lei and Mexican pesos. The market value of these contracts is positive for 22.3 million euros; derivatives contracts (foreign currency forwards) maturing in ● 2021 for an equivalent of 8.1 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 positive for 0.7 million euros;

foreign currency swaps for an equivalent of 51 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 positive for 92,853 euros. In 2021, more than 90% of the Group’s foreign currency transaction exposure is hedged.

19-2

Interest rate derivatives

As of December 31, 2020, 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.

19-3

Commodities derivatives

Hedge nominals denominated in currencies other than the euro are converted to euros at December 31, 2020 closing rates.

Derivatives portfolio detail

Nominal (in euros)

Market value (in euros)

Hedging support

Instrument

2021 RawMaterial purchases

6,912,698

621,099

Swap

TOTAL

6,912,698

621,099

286

• BIC GROUP - 2020 UNIVERSAL REGISTRATION DOCUMENT •