BIC_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Consolidated financial statements

As of December 31, 2017, the Group used a deferred tax rate of 22.77% for the U.S. following the enactment of the new tax reform in December 2017. Origin of deferred tax

Dec. 31, 2016

Dec. 31, 2017

(in thousand euros)

Pension and other employee benefits

86,742 37,154

45,300 35,676

Intra-Group profit elimination

Tax losses carried forward

 2,215

5,505 

Cello trademark

(16,939)

(15,830) 21,393 92,044

Other temporary differences

14,139

NET DEFERRED TAX

123,311

CHANGE IN NET WORKING CAPITAL NOTE 14

Accounting policies Inventories are stated at the lower of cost and net realizable value. Cost comprises direct raw material costs and, where applicable, direct labor costs, as well as those overheads that have been directly incurred in bringing the inventories to their present location and condition. Cost is generally calculated using the weighted average cost method. Net realizable value represents the estimated selling price in the normal course of business less all estimated costs of completion and costs to be incurred in the sale (marketing, selling and distribution). Trade receivables are measured at initial recognition at fair value. Impairment losses are recognized in profit or loss when there is an indication of impairment. The amount of the impairment loss recognized is equal to the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate calculated at initial recognition of the receivables. Trade payables are initially measured at fair value.

Reintegration of assets/liabilities held for sale at December 31, 2016 not sold in 2017

Foreign exchange and others

Cash flows impact

Dec. 31, 2016

Dec. 31, 2017

(in thousand euros)

Net inventory

468,142

(16,556) (15,723)

(31,461) (32,272)

8,852

428,977

Inventory - Gross value • Inventory - Impairment •

483,629 (15,487) 483,099 (118,676) (190,360) 642,205

9,060

444,694 (15,717) 476,745 (125,539) (198,050) 582,133

(833)

811

(208)

Trade and other receivables Trade and other payables Other assets and liabilities NET WORKING CAPITAL

25,425

(35,431) (11,937)

3,652

5,954

(881)

(12,637)

6,645

(1,698)

CF

2,186

(72,183)

9,925

CF: See consolidated cash flow statement.

The working capital is used to finance the Group’s operating cycle. Details of the elements used in the calculation are presented above.

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BIC GROUP - 2017 REGISTRATION DOCUMENT