2021 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

Other income and expenses incurred in 2021 mainly include: 167.7 million euros from Clichy Headquarters sale; ● 7.0 million euros of favorable pensions adjustment in France ● linked to the change in the collective agreement to be effective in 2024 and in th UK; PIMACO divestiture gain for 3.0 million euros; ● 4.2 million euros of restructuring costs, of which the ● transformation plan is the main driver.

Other income and expenses incurred in 2020 mainly included: Property, plant and equipment along with trademark ● impairment of Cello for 41.7 million euros; 27.2 million euros of restructuring costs, of which ● transformation plan, BIC Ecuador factory closure, Latin America and Asia commercial operations restructuring are among the main drivers; 44.1 million euros of favorable Pensions adjustment in the U.S., ● linked to a change of medical and pension plan, see Note 18-2; the expenses linked to the Covid-19 impact during 2020 for ● -3.6 million euros.

NOTE 6

FINANCIAL INCOME

Accounting policies Interest income is accrued on a time basis, by reference to the effective yield on the asset, namely the interest rate, which exactly ● discounts estimated future cash receipts over the expected life of the financial asset to the asset’s initial value. Dividend income from investments is recognized when the Shareholder’s right to receive payment has been established. ● Considering the nature of the BIC Group’s activities, interest and dividends received are disclosed as financial income in the income ● statement. All borrowing costs are recognized as expenses in the period in which they are incurred. ● For lease contracts falling within the scope of IFRS 16, the rental expense is replaced by a depreciation charge on the right of use ● booked in operating expenses (see Note 4) and an interest expense recorded in financial expense.

As of December 31, 2021

As of December 31, 2020

(in thousand euros)

Interest income from cash and cash equivalents

1,728

966

Interest on bank deposits

1,390

2,743

Income from cash and cash equivalents

3,118

3,709

Interest expense

(3,204)

(2,548)

Cost of financial debt – IFRS 16

(1,352)

(1,188)

Argentina hyperinflation accounting – IAS 29

(3,266)

(5,505)

Net financial foreign exchange difference

3,285

1,315

Net finance income/(net finance costs)

(4,536)

(7,926)

FINANCE (COSTS)/REVENUE

(1,418)

(4,217)

Financial income decreased during 2021 compared to 2020. It comes from several factors: during 2020, the depreciation of mexican peso and brazilian ● real against the U.S. dollar generated a much favorable impact on the valuation of financial assets denominated in U.S. dollars; 2021 was more negatively impacted by Argentina ● hyperinflation accounting than in 2020; partly offset by: income from cash and cash equivalents increase compared to ● the previous period due to higher interest rates.

In fiscal year 2020, the Group has improved its access to short and medium-term liquidity through the implementation of a 3-year, 200 million euro Revolving Credit Facility (R.C.F.) and a 200 million euro NeuCP program. To date, the R.C.F. has not yet been drawn down, and NeuCP's outstanding balance amounts to 59 million euro. Given the special interest rate environment currently prevailing in the euro zone, NeuCP's issues have taken place in negative territory and therefore do not create any additional financial expenses.

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• BIC GROUP - 2021 UNIVERSAL REGISTRATION DOCUMENT •