BIC_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Consolidated financial statements

OTHER CURRENT LIABILITIES NOTE 19

Dec. 31, 2016

Dec. 31, 2017

(in thousand euros)

Social liabilities

98,104 12,123 121,884 232,111

96,470 10,893 131,569 238,932

Other tax liabilities

Other current liabilities

OTHER CURRENT LIABILITIES

DISCONTINUED OPERATIONS NOTE 20

BIC Graphic North America and Asia were classified as discontinued operations at December 31, 2016 following the planned disposal of these activities, which represented almost all the assets and liabilities of BIC Graphic (operating segment). As a consequence these assets and liabilities (including the Norwood goodwill) were measured at December 31, 2016 in accordance with IFRS 5, Non-Current Assets Held For Sale And Discontinued Operations at the lower of their carrying amount and fair value less costs to sell.

On June 6, 2017, the BIC Group was announced that it had signed an Asset and Share Purchase Agreement to sell its BIC Graphic North America and Asian Sourcing operations to H.I.G. Capital, a global U.S. private equity firm. The closing was effective as of June 30, 2017. The net disposal price amounted to 73.6 million U.S. dollars, including 10 million U.S. dollars through a six-year subordinated note bearing a 7% per annum capitalized interest. The related loss net of tax amounted to 4.0 million euros, subject to final adjustments. These activities have been subject to a restatement in the income statement and the cash flow statement, given their significance, and break down as follows:

Consolidated income statement

Notes

Dec. 31, 2016

Dec. 31, 2017

(in thousand euros)

Net sales

2-2

246,673

100,291 (69,033)

Cost of goods Gross profit

4

(167,261)

79,412

31,258

Distribution costs

4 4 4 5 5

(38,325) (24,463)

(18,246) (13,115)

Administrative expenses

Other operating expenses

(4,274)

(2,738)

Other income

215

11

Other expenses

(60,908)

(1,156)

Income from operations

(48,343)

(3,986)

Income from cash and cash equivalents Net finance income/(Net finance costs)

6 6

66

91

(5,637)

(41)

Income before tax

(53,914)

(3,935)

Income tax expense

7

18,060

1,184

Net income from consolidated entities

(35,854)

(2,751)

Net income from discontinued operations amounts to -6.8 million euros including the net loss on disposal of -4.0 million euros and the 2017 net income of -2.8 million euros.

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BIC GROUP - 2017 REGISTRATION DOCUMENT