2021 Universal Registration Document

FINANCIAL STATEMENTS

Parent company financial statements of SOCIÉTÉ BIC (French GAAP)

NOTES TO THE OFF-BALANCE SHEET COMMITMENTS

NOTE 19

OFF-BALANCE SHEET FINANCIAL INSTRUMENTS

The following are SOCIÉTÉ BIC’s main off-balance sheet financial instruments:

19-1

Currency derivatives

Hedge nominals denominated in currencies other than the euro are converted to euros at December 31, 2021 closing rates. The valuation of the hedges computed in accordance with market practices in terms of inputs (spot, yield curves, volatility curves) and calculation models.

Forward portfolio detail

Nominal (euros)

Market value (euros)

Hedging support

Instrument

Commercial Flows 2022

392,014,300

(9,196,319)

Forward

Commercial Flows 2023

9,797,203

55,933

Forward

Commercial Flows 2024

967,961

(7,702)

Forward

Intra-Group Dividends

50,950,909

(2,876,015)

Forward

Loans/Borrowings

100,653,991

76,585

Currency Swap

TOTAL

554,384,364

(11,947,519)

Options portfolio detail

Options purchased Nominal (euros)

Options sold Nominal (euros)

Market value (euros)

Hedging support

Instrument

Commercial Flows 2022

14,445,451

14,445,451

40,499

Option

TOTAL

14,445,451

14,445,451

40,499

foreign currency swaps for an equivalent of 100.7 million ● euros, in connection with the Group's foreign currency liquidity and intra-Group foreign currency loans and borrowings. The market value of these contracts is positive for 76,585 euros. In 2022, more than 90% of the Group’s foreign currency transaction exposure is hedged.

As of December 31, 2021, SOCIÉTÉ BIC had contracted: derivatives contracts (foreign currency forwards and options) ● maturing in 2022, 2023 and 2024 for an equivalent of 431.7 million euros in gross nominal value. These contracts hedge, on the basis of forecast cash flow, a significant part of the Group's foreign currency transaction risks. The foreign currency transactions are denominated in U.S. dollars, Pounds sterling, Canadian dollars, Australian dollars, New Zealand dollars, Japanese yens, Swiss francs, Polish zlotys, Romania lei and Mexican pesos. The market value of these contracts is negative for 9.1 million euros; derivatives contracts (foreign currency forwards) maturing in ● 2022 for an equivalent of 51 million euros in gross nominal value, dedicated to the hedge of the intra-Group dividends received in foreign currencies. The market value of these contracts is negative for 2.9 million euros;

19-2

Interest rate derivatives

As of December 31, 2021, SOCIÉTÉ BIC does not have any interest rate derivatives. All local funding needs are directly indexed on a variable rate. Borrowers’ positions are insignificant and are of a too limited timescale to require any hedging.

19-3

Commodities derivatives

Hedge nominals denominated in currencies other than the euro are converted to euros at December 31, 2021 closing rates.

Derivatives portfolio detail

Nominal (euros)

Market value (euros)

Hedging support

Instrument

2022 RawMaterial purchases

165,849

111,586

Swap

TOTAL

165,849

111,586

278

• BIC GROUP - 2021 UNIVERSAL REGISTRATION DOCUMENT •