BIC_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Consolidated financial statements

Interest rate risk 24-3 As of December 31, 2017 BIC Group has no significant debt or related hedging instruments. The exposure to interest rate fluctuations on borrowings is very limited. All local funding needs are directly indexed on a variable rate. Borrowers’ positions are insignificant and are of too limited a time scale to require any relevant hedging.

Every day, Group Treasury adjusts the liquidity situation of the current accounts as a result of currency swaps realized on the market. This strategy, even though it uses exchange instruments, cannot be considered as a full foreign exchange risk management hedging program, as there is no definitive translation of bank accounts. It only equates to optimization of funding by SOCIÉTÉ BIC through foreign liquidity management.

Impact of interest rate and foreign exchange risk hedging on the consolidated 24-4 financial statements as of December 31, 2017 The following amounts have been booked as the fair value of derivatives as of December 31, 2017 (in thousand euros):

Net financial income/ (expense) before tax (a) – Note 6

Income from operations – Note 4

Other comprehensive income before tax (a)

Derivative instruments and revaluation

Hedge income qualification/ hedged risk

Current assets (b)

Non-current assets

Current Liabilities

Non-current Liabilities

Hedging revaluation impact

Cash flow hedge/Foreign exchange risk

Commercial flows

396

5,584

30,361

23,488

38

(1,915)

(104)

Net investment/Foreign exchange risk

Dividends

-

-

2,892

2

-

-

-

Subtotal (1)

396

5,584

33,253

23,490

38

(1,915)

(104)

Revaluation of cross-currency

swaps backed by cash positions in foreign currencies

At fair value through P&L/Foreign exchange risk

192 192 588

- -

- -

131 131

- -

(305)

- -

Subtotal (2) TOTAL 1+2

(305)

5,584 (104) This corresponds to mark-to-market of hedging instruments in the portfolio at December 31, 2017, restated for the reversal of the mark-to-market of the portfolio (a) of hedging instruments as of December 31, 2016. Including options not yet exercised held by SOCIÉTÉ BIC representing current assets for 701 thousand euros. (b) 33,253 23,621 38 (2,220)

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BIC GROUP - 2017 REGISTRATION DOCUMENT