BIC_Registration_Document_2017

FINANCIAL STATEMENTS Consolidated financial statements

Reconciliation between theoretical tax expense and effective income tax expense:

Dec. 31, 2016

Dec. 31, 2017

(in thousand euros)

Income before tax

408,191

398,063

Tax rate

34.43%

34.43%

Theoretical tax expense

140,540

137,053

Effects of: differences in tax rates •

(8,206) (5,715) 12,651

(10,956)

income taxed at reduced rate • initial recognition exemptions • intra-Group accruals eliminations • tax assets not recognised on tax losses •

(4,753)

(15,811)

580 600

7,733

91

tax assets/liabilities not recognised on prior years •

(613)

4,620

tax assets recognised on prior year tax losses •

(2,215)

(5,505)

tax credits •

(16,576)

(11,119)

foreign exchange differences •

1,604

1,638

Income tax expense

122,651

102,991

EFFECTIVE TAX RATE

30.05%

25.87%

In addition, as of December 31, 2017, the BIC Group has 23.6 million euros of unrecognized deferred tax assets relating to unused tax losses, versus 19.6 million euros in 2016.

7-2 Deferred and current taxes recognized in other comprehensive income result from the following items: At December 31, 2017

Deferred and current tax recognized in other comprehensive income

Other comprehensive income

Deferred taxes

(in thousand euros)

Actuarial differences on post-employment benefits (1)

14,389

(30,691) (11,360)

Cash flow hedge

33,252

Foreign exchange impact

(148,016)

11,241

-

Other

5

Total other comprehensive income (2)

(114,759)

(120)

TOTAL (1)+(2)

(100,371)

(30,811)

At December 31, 2016

Other comprehensive income

Deferred taxes

(in thousand euros)

Actuarial differences on post-employment benefits (1)

(4,282)

479

Cash flow hedge

(14,107)

4,701

Foreign exchange impact

45,789

90 47

Other

2

Total other comprehensive income (2)

31,685 27,403

4,837 5,316

TOTAL (1)+(2)

184

BIC GROUP - 2017 REGISTRATION DOCUMENT