BIC_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Consolidated financial statements

NOTE 7

INCOME TAX

Accounting policies Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable income differs from income as published in the income statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. Liability for current tax is calculated using tax rates that have been enacted as of the balance sheet date. BIC Sport, BIMA 83, BIC Écriture 2000, BIC Services, Conté, Société Immobilière, Société Immobilière Valiton Gesnouin, BIC Rasoirs, Société du Briquet Jetable 75, BIC Graphic France, BIC Assemblage, BIC Technologies, BIC International Développement, DAPE 74 Distribution, Stypen, Electro-Centre and BIC Éducation are part of the SOCIÉTÉ BIC tax group.

7-1

Income tax expense

3,150 Deferred tax

9,614 Deferred tax

36,569 France

36,947 France

76,468 Foreign

62,895 Foreign

2016

2017

Income tax expense Total: 122,651

Income tax expense Total: 102,991

The normal income tax rate in France is 34.43% (including social contributions) for the fiscal year 2017, as for 2016. Taxation for other jurisdictions is calculated at the rates prevailing in the respective countries. The Group uses the French tax rate as the theoretical base for the reconciliation between the theoretical tax expense and the effective income tax expense. Thus one of the main elements of reconciliation is the effect of differences in tax rates.

As of December 31, 2017, the main contributors were the U.S., Greece, Spain and Mexico. (As of December 31, 2016, the main contributors were the U.S., Greece, Singapore, Spain and Mexico). As of December 31, 2017, the invalidation of 3% additional French Corporate Income Tax on dividends amounted 24.5 million euros is included in the income tax. The related moratory interests amounting to 2.5 million euros was booked in financial income (see Note 6). The French exceptional contribution of 15% amounting to 6.6 million euros is also included in the income tax as of December 31, 2017.

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BIC GROUP - 2017 REGISTRATION DOCUMENT