2021 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to align their accounting policies with those used by other entities of the Group. All intra-Group transactions, balances, income and expenses are eliminated on consolidation.

assumptions in order to take into account past experience as well as changes in the economic environment, especially in some key countries of the Group. The results of these reviews could lead to the amounts published in future consolidated financial statements differing from those previously disclosed. The assumptions on which the main estimates are based and the assessment made are explained in the following notes: Note 1-2 – Change in Group structure ; ● Note 10 – Goodwill ; ● Note 17 – Provisions ; ● Note 18 – Pensions and other employee benefits ; ● Note 22-6 – Fair value of financial assets and liabilities ; ● Note 24 – Derivative financial instruments and hedge ● accounting.

1-1-4

Estimates and judgments

In preparing the consolidated financial statements, the Group formulates estimates and assumptions that impact the financial statements and information in certain notes to the financial statements. The Group regularly reviews these estimates and

1-2

Change in Group structure

Accounting policies In accordance with Revised IFRS 3 – Business Combinations, business combinations are accounted for using the acquisition ● method. Identifiable assets acquired and liabilities assumed are measured at fair value at the acquisition date and, when appropriate, non-controlling interests in the acquiree are measured at either fair value or at the proportionate part in the fair value of the assets and liabilities of the acquired entity. This option is available on an individual basis for each business combination transaction. Any share previously held in the acquiree before the takeover, should be reassessed at fair value and the corresponding profit or the ● loss recorded in the income statement. Badwill is recorded immediately in the income statement. ● When incurred, acquisition costs are recognized immediately as expenses, except those relating to equity instruments (which are ● recognized as a deduction to the Shareholders’ equity). Any potential price adjustment is estimated at fair value as of the acquisition date and this initial assessment can only later be ● adjusted against goodwill in the case of new information related to facts and circumstances existing at the date of acquisition and to the extent that the assessment was still described as provisional (assessment period limited to 12 months); any subsequent adjustments that do not meet these criteria are recorded as a liability or receivable through the Group income statement. Put options granted to non-controlling interests of fully consolidated subsidiaries are considered as financial debt. The value of the ● debt is estimated using the formulas or prices set contractually. When utilizing formulas based upon multiples of earnings minus debt, the Group uses the actual profit/loss of the entity in the period and its debt at the closing date of the fiscal year. The Group enters these put options as a financial debt at the present value of the put exercise price with Group Shareholders’ ● equity as a counterpart; subsequent changes in debt are treated similarly.

Change in the consolidation scope On February 26, 2021 – BIC announced the closing of the sale of its Brazilian adhesive label business, PIMACO, to Grupo CCRR for 40 million Brazilian Real (approximately 6.0 million euros). The transaction has been approved by the Brazilian antitrust authorities.

Significant events 1-3 On February 11, 2021 – BIC announced that it has signed with BNP Paribas Real Estate and CITALLIOS the sale of its Clichy-la-Garenne-based (France) Headquarters and BIC Technologies sites for an amount of 175 million euros, representing a 167.7 million euros gross capital gain.

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• BIC GROUP - 2021 UNIVERSAL REGISTRATION DOCUMENT •