2021 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

Reconciliation between the theoretical and effective income tax expense:

December 31, 2021

December 31, 2020

(in thousand euros)

Income before tax

155,336

447,789

Tax rate

32.02%

28.41%

Theoretical tax expense

49,739

127,217

Effects of: differences in tax rates •

(11,196)

(6,986)

income taxed at reduced rate •

(64)

(215)

initial recognition exemptions •

20,784

15,777

intra-Group accruals eliminations •

139

(2,044)

tax assets not recognized on tax losses •

6,663

6,885

tax assets/liabilities not recognized on prior years •

615

998

tax assets recognized on prior year tax losses •

71

-

tax credits •

(5,417)

(6,891)

foreign exchange differences •

277

(1,145)

INCOME TAX EXPENSE

61,611

133,595

EFFECTIVE TAX RATE

39.66%

29.83%

In addition, as of December 31, 2021, the Group has 47 million euros of unrecognized deferred tax assets relating to unused tax losses mostly in India, versus 42 million euros in 2020.

7-2

Deferred and current tax recognized in other comprehensive income

Accounting policies See: Note 13

Deferred and current taxes recognized in other comprehensive income result from the following items:

As of December 31, 2021

Other comprehensive income

Deferred taxes

(in thousand euros)

Actuarial differences on defined-benefit plans (1)

46,158

(10,543)

Other comprehensive income (2)

17,355

7,422

Cash flow hedge

(26,523)

7,474

Foreign exchange impact

43,868

(52)

Other

10

-

TOTAL (1)+(2)

63,513

(3,121)

As of December 31, 2020

Other comprehensive income

Deferred taxes

(in thousand euros)

Actuarial differences on defined-benefit plans (1)

(13,823)

3,075

Other comprehensive income (2)

(119,538)

(5,842)

Cash flow hedge

22,763

(6,775)

Foreign exchange impact

(142,303)

933

Other

3

-

TOTAL (1)+(2)

(133,361)

(2,767)

220

• BIC GROUP - 2021 UNIVERSAL REGISTRATION DOCUMENT •

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