2021 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

The Group may grant year-end rebates. These rebates are booked in net sales and amounted 124 million euros as of December 31, 2021 compared to 91 million euros as of December 31, 2020.

NON-CURRENT ASSETS (1) (in million euros)

195 Developing Markets

179 Developing Markets

322 France

314 France

243 North America

261 North America

187 Europe excluding France

181 Europe excluding France

2020 Total: 948

2021 Total: 934

NOTE 3

EXCHANGE RATES OF FOREIGN CURRENCIES

Accounting policies The individual financial statements of each Group entity are presented in the currency of the primary economic environment in ● which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the result and financial position of each entity are expressed in a common currency, the euro, which is the functional currency of SOCIÉTÉ BIC as well as the presentation currency for the consolidated financial statements. In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional currency ● are recorded at the rate of exchange prevailing on the date of the transaction. At each closing date, monetary items denominated in foreign currencies are translated at the closing rate. Non-monetary items that are measured in terms of historical cost are translated using the exchange rate at the transaction date. Non-monetary items that are measured at fair value are translated using the exchange rates prevailing at the date of the measurement. Exchange differences arising from the settlement of monetary items, and on the translation of monetary items, are recognized in ● profit or loss for the period. To hedge its exposure to certain foreign exchange risk, the Group enters into forward contracts and options (see Note 24 for details ● of the Group’s accounting policies regarding derivative financial instruments). For the purpose of presenting the consolidated financial statements, the assets and liabilities of the Group’s foreign operations are ● converted into euros using the exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognized as a separate line item in equity under the Group’s translation reserve and are recognized in profit or loss in the period in which the foreign operation is disposed of.

Other than financial instruments (0.1 million euros in 2021 and 1.0 million euros in 2020), deferred tax assets (131.4 million euros in 2021 and (1) 114.2 million euros in 2020) and deferred pensions (4.4 million euros in 2021 and 0.6 million euros in 2020).

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• BIC GROUP - 2021 UNIVERSAL REGISTRATION DOCUMENT •