BIC_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Consolidated financial statements

Consolidated cash flow statement

Dec. 31, 2016

Dec. 31, 2017

(in thousand euros)

Opening cash and cash equivalents net of bank overdrafts

30,288 22,548 (5,310) (47,958)

-

Net cash from operating activities Net cash from investing activities Net cash from financing activities

6,081

(3,360) (2,302)

Exchange difference

432

(419)

Net cash from discontinued operations

-

-

DIVIDENDS NOTE 21

For the 2016 fiscal year, an ordinary dividend of 3.45 euros per share was distributed to Shareholders on May 24, 2017. For the 2015 fiscal year, an ordinary dividend of 3.40 euros per share and a special dividend of 2.50 euros per share were distributed to the Shareholders on June 1, 2016.

EXPOSURE TO MARKET RISKS NOTE 22

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 the 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, 2017, the total invested by Group Treasury amounted to 4.7 million euros divided into three individual positions. They consist in UCITS not benefiting from the “Cash and Cash Equivalent” qualification. It should be noted that given the negative rates currently applying on short-term investments in euros, it seems pertinent to simply place available cash in a bank account. In this respect, as of December 31, 2017, Group Treasury had 30.1 million euros in cash position on its principal operational bank account.

Counterpart risk 22-1 All financial instruments are set up with banking institutions awarded top ratings by international rating agencies, making counterparty risk very low. The minimum Standard & Poor’s long-term rating of the main banking counterparties is A-, the rating range being from A+ to A-. Cash investment decisions are subject to strict counterparty risk assessment (both depositories and custodians). The main part of the portfolio as of December 31, 2017 is on investment grade-rated supports. Counterparty risk is estimated not significant as of December 31, 2017.

Foreign exchange risk 22-2 See Note 24-2 .

Interest rates risk 22-3 See Note 24-3 .

Liquidity risk 22-4 The BIC Group manages its equity in order to keep a positive and liquid cash position, so as to be able to achieve its development and/or external growth strategy.

Dec. 31, 2016

Dec. 31, 2017

(in thousand euros)

Cash equivalents: marketable securities

88,523

51,919

Cash

155,239 243,762

136,707 188,626

CASH AND CASH EQUIVALENTS, EXCLUDING BANK OVERDRAFTS

204

BIC GROUP - 2017 REGISTRATION DOCUMENT