BIC_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Consolidated financial statements

NOTE 8

EARNINGS PER SHARE GROUP SHARE

Earnings per share Group share and diluted earnings per share Group share correspond to the Group net income divided by the relevant number of shares. The number of shares used to calculate the earnings per share Group share is the weighted average number of ordinary shares outstanding during the period less the weighted average number of shares held in treasury stock by SOCIÉTÉ BIC during the period and presented as a reduction to equity.

The number of shares used to calculate the diluted earnings per share Group share is the weighted average number of shares potentially in circulation during the period, which corresponds to the number of shares used for basic earnings per share Group share, adjusted for the dilutive effect of stock options. As of December 31, 2017, there are no shares with relutive impact and the maximum dilutive effect from stock options not exercised is around 0.2% of the share capital.

Dec. 31, 2016

Dec. 31, 2017

Numerator (in thousand euros) Net income Group share from continuing operations Denominator (in number of shares) Weighted average number of ordinary shares outstanding

285,540

295,072

46,898,827

46,475,249

Dilutive effect of stock options

437,274

264,436

Diluted weighted average number of ordinary shares outstanding

47,336,101

46,739,685

Earnings per share Group share from continuing operations (in euros) Earnings per share Group share from continuing operations

6.09 6.03

6.35 6.31

Diluted earnings per share Group share from continuing operations

NOTE 9

PROPERTY, PLANT AND EQUIPMENT

Accounting policies Land and buildings held by the Group for use in the production or supply of goods or services, or for administrative purposes, are recognized in the balance sheet at their initial acquisition cost, less any accumulated depreciation and impairment losses. Depreciation is booked to profit or loss. Property, plant and equipment in the course of construction for production, rental or administrative purposes, or for purposes not yet determined, are carried at cost, less any identified impairment loss. Depreciation of these assets, on the same basis as other property, plant and equipment assets, starts when the assets are ready for their intended use. Fixtures and equipment are stated at initial acquisition cost less accumulated depreciation and impairment losses. Depreciation is booked to profit or loss so as to reduce the carrying amount of assets, other than land and properties under construction, over their estimated useful life, using the straight-line method. Leases transferring risks and rewards linked to ownership (finance leases) are booked in assets with a financial debt as a counterpart. They are depreciated over their expected useful life on the same basis as owned assets or, where shorter, over the term of the relevant lease. The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss. The depreciation method is the straight-line method, on the following basis:

Buildings •

25 years

Fixtures, machinery and equipment •

5 to 8 years 3 to 5 years

Vehicles •

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BIC GROUP - 2017 REGISTRATION DOCUMENT