2021 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

The goodwill on Rocketbook is allocated to the cash-generating unit linked to the distribution of the Core and Fusion notebooks, reusable notebooks used with erasable pens by Rocketbook. Provisional goodwill amounting 26.9 million dollars (21.9 million euros as of December 31, 2020) has been recognized in 2020. The purchase price allocation has been finalized in 2021. Goodwill now amounts to 29.6 million dollars (26.2 million at December 31, 2021). As every year, as of June 30, 2021, the Group performed annual impairment tests on these goodwill amounts. The goodwill impairment test methodology is based on a comparison between the recoverable amount of each of the Group’s cash-generating units and the corresponding assets’ net book value (including goodwill). Such recoverable amounts correspond to the value in use and are determined using discounted future cash flow projections over a maximum of five years and a terminal value using the perpetual annuity method, including notably the following:

the discount rate before taxes used is the weighted average ● cost of capital. Particular attention has been paid to the analysis of the main market items used for the calculation of the discount rates; the perpetual growth rates were determined based on ● external (inflation rate) and internal (business growth) sources. Perpetual growth rates above 2% take into account market specifics, notably in Nigeria and India. Considering the impairment on part of the assets on the CGU Cello, any negative variance of drivers (discount rate, performance and perpetual growth rates) would lead to an additional impairment of other assets. The sensitivity of the other impairment tests to changes in the key assumptions indicates that no reasonably likely change would lead to impairment, taking into account the observed headroom on the other tests conducted.

NOTE 11

OTHER INTANGIBLE ASSETS

Accounting policies Internally-generated intangible assets – research and development expenditure An internally-generated intangible asset arising from the development or a development phase of an internal project is only recognized on the balance sheet if an entity can demonstrate all of the folowing: the company can guarantee the technical feasibility of completing the intangible asset so that it will be available for use or sale; ● the company’s intention to complete the intangible asset and use or sell it; ● the company’s ability to use or sell the intangible asset; ● the way in which the intangible asset will generate probable future economic benefits must be demonstrated. Among other things, ● the entity must ensure the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset; the company can guarantee the availability of adequate technical, financial and other resources to complete the development and to ● use or sell the intangible asset; the company has the ability to measure reliably the expenditure attributable to the intangible asset during its development. ● Internally-generated intangible assets are amortized on a straight-line basis over their estimated useful life. When the requirements for recognition of internally-generated intangible assets are not satisfied, development expenditure is charged to profit or loss in the period in which it is incurred. Patents, trademarks, licenses and software Patents, trademarks, licenses and softwares are measured initially at purchase cost less accumulated amortization and impairment loss. Amortization is booked to proft or loss so as to reduce the carrying amount of assets over their estimated useful life, using the straight-line method. Impairment of intangible assets (excluding goodwill) See Note 9-2

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• BIC GROUP - 2021 UNIVERSAL REGISTRATION DOCUMENT •