| CONTENTS | 2 |
| Message from the CEO | 5 |
| 2018 Profile | 8 |
| BIC Vision | 10 |
| BIC Model | 12 |
| BIC Way | 16 |
| BIC Performance | 23 |
| 1. GROUP PRESENTATION | 27 |
| 1.1. Key figures | 28 |
| 1.2. History | 32 |
| 1.3. Business presentation | 35 |
| 1.4. Research and Innovation | 40 |
| 1.5. Property, plant and equipment | 41 |
| 2. RISKS | 43 |
| Introduction | 44 |
| List of the main risks | 44 |
| 2.1. Operational and financial risks | 45 |
| Financial and market risks | 45 |
| Legal proceedings risks | 47 |
| Industrial and environmental risks | 47 |
| Strategic and operational risks | 48 |
| Other special risks | 49 |
| 2.2. Extra financial risks | 50 |
| Risks related to Plastics: Production of Plastic Waste and Resource Depletion | 50 |
| Risks related to Climate Change | 51 |
| Risks Related to Product Safety and Consumer Health and Safety | 52 |
| Risks related to Health and Safety of Team members | 52 |
| Risks Related to non-respect of Human Rights (Child labor, international conventions, ILO) | 53 |
| Risks related to unfair Practices (Corruption) | 53 |
| Risks Related to the Environment | 54 |
| Risks Related to Reputation and Brand | 54 |
| Risks related to experienced team members and skills | 54 |
| 2.3. Vigilance Plan | 55 |
| 2.3.1. Regulatory framework | 55 |
| 2.3.2. Governance | 55 |
| 2.3.3. Risk Mapping | 55 |
| 2.3.4. Organization and measures for the prevention of major extra-financial risks | 56 |
| 2.4. Risk management and internal control procedures implemented by the Company and Insurance | 59 |
| 2.4.1. Risk management and internal control definitions and objectives | 59 |
| 2.4.2. Components of risk management and internal control of the Company and its subsidiaries | 60 |
| 2.4.3. Risk management and internal control participants, specific structure (s) in charge/respective roles and interactions | 64 |
| 2.4.4. Insurance – coverage of risks likely to be incurred by the issuer | 66 |
| 3. OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY | 69 |
| 3.1. The BIC Sustainable Development Program and its five flagship commitments: Writing the Future, Together | 71 |
| 3.1.1. Our commitment for 2025, rooted in our history and convictions | 71 |
| 3.1.2. Integrating sustainable development into our operations | 76 |
| 3.1.3. Interaction with our stakeholders | 78 |
| 3.2. Responsibility concerning our products | 80 |
| 3.2.1. Our products’ environmental performance | 80 |
| 3.2.2. Products conceived to meet and anticipate consumers’ expectations | 86 |
| 3.2.3. Product safety | 88 |
| 3.2.4. Optimized packaging | 90 |
| 3.3. Environmental responsibility concerning our operations | 92 |
| 3.3.1. Our industrial sites and offices | 92 |
| 3.3.2. Our transportation activities | 99 |
| 3.4. Our social responsibility to our employees | 101 |
| 3.4.1 The workforce | 101 |
| 3.4.2. Sharing our values, listening to our employees | 103 |
| 3.4.3. Health/Safety in the workplace | 103 |
| 3.4.4. Employee security related to geopolitical risks | 105 |
| 3.4.5. Health and well-being in the workplace | 105 |
| 3.4.6. Employee development | 108 |
| 3.4.7. Le système de rémunération | 110 |
| 3.4.8. Promoting diversity | 111 |
| 3.4.9. Social dialogue | 113 |
| 3.5. Our societal responsibility | 114 |
| 3.5.1. Fulfilling our responsibility across our entire value chain | 114 |
| 3.5.2. Supporting the local economy and promoting solidarity | 118 |
| 3.6. Milestones | 123 |
| 3.6.1. Extra-financial ratings | 123 |
| 3.6.2. Awards received | 123 |
| 3.6.3. Perimeter and selection of indicators | 123 |
| 3.6.4. Indicators table | 125 |
| 3.6.5. Report of one of the Statutory Auditors, appointed as independent third party, on the consolidated non-financial statement published in the Group management report | 128 |
| 4. CORPORATE GOVERNANCE | 131 |
| 4.1. Administrative and management bodies | 132 |
| 4.1.1. Composition and functioning of administrative and management bodies | 132 |
| 4.1.2. Fonctionnement du Conseil d’Administration | 150 |
| 4.2. Corporate Officers’ compensation | 156 |
| 4.2.1. Compensation policy for the Chairman, Chief Executive Officer and Executive Vice-Presidents of SOCIÉTÉ BIC for 2019 | 156 |
| 4.2.2. Compensation and Benefits | 159 |
| 5. COMMENTS ON THE YEAR | 177 |
| 5.1. Operations and consolidated results | 178 |
| The Group in 2018 | 178 |
| 2018 Group performance by category | 181 |
| 2018 Group performance by geographical area | 183 |
| 5.2. Financial situation and cash | 186 |
| 5.3. Dividends | 187 |
| 5.4. Investments | 188 |
| Principal investments over recent years | 188 |
| Principal investments in 2018 | 189 |
| Principal investments in progress: geographic distribution and financing methods | 189 |
| Principal future investments | 189 |
| 5.5. Prospects for 2019 and strategy | 190 |
| 2019 operational outlook | 190 |
| Operational and strategic targets for 2022 | 190 |
| Mission and purpose, Long-term Ambition | 190 |
| Risks and opportunities | 191 |
| Performance goals | 191 |
| Recent events | 191 |
| 6. FINANCIAL STATEMENTS | 193 |
| 6.1. Consolidated financial statements | 194 |
| 1. Consolidated income statement | 195 |
| 2. Consolidated statement of comprehensive income | 196 |
| 3. Consolidated statement of financial position | 197 |
| 4. Consolidated statement of changes in equity | 199 |
| 5. Consolidated cash flow statement | 200 |
| 6. Notes to the consolidAted financial statements | 202 |
| 6.2. Statutoty Auditors' Report on the consolidated financial statements | 253 |
| I. Opinion | 253 |
| II. Basis for Opinion | 253 |
| III. Justification of Assessments - Key Audit Matters | 253 |
| IV. Specific verifications | 254 |
| V. Report on Other Legal and Regulatory Requirements | 254 |
| VI. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements | 254 |
| VII. Statutory Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements | 255 |
| 6.3. Parent company financial statements of Société Bic (French GAAP) | 256 |
| 1. Income statement | 257 |
| 2. Balance sheet | 258 |
| 3. Cash flow statement | 260 |
| 4. Notes to the parent company financial statements | 261 |
| 5. Additional information on the parent company financial statements | 275 |
| 6.4. Statutory Auditors' Report on the financial statements | 276 |
| I. Opinion | 276 |
| II. Basis for Opinion | 276 |
| III. Justification of Assessments - Key Audit Matters | 276 |
| IV. Specific Verifications of the Management Report and of the Other Documents Provided to Shareholders | 277 |
| V. Report on Other Legal and Regulatory Requirements | 278 |
| VI. Responsibilities of Management and Those Charged with Governance for the Financial Statements | 278 |
| VII. Statutory Auditors’ Responsibilities for the Audit of the Financial Statements | 278 |
| 6.5. Statutory Auditors' Special Report on regulated agreements and commitments | 280 |
| 7. INFORMATION ABOUT THE ISSUER | 281 |
| 7.1. Information on the company | 282 |
| History and development of the issuer | 282 |
| Memorandum and articles of incorporation | 282 |
| 7.2. Share capital | 284 |
| 7.3. Shareholding | 286 |
| Share capital breakdown | 286 |
| Employees’ shareholding | 287 |
| Crossing of legal thresholds | 287 |
| Elements that could have influence on a take-over bid or that could delay or prevent a change of control (article L. 225-100-3 of the French Commercial Code) | 287 |
| 7.4. Treasury shares and share buyback | 288 |
| Treasury shares held by SOCIÉTÉ BIC as of December 31, 2018 | 288 |
| Share buyback program – operations carried out in 2018 | 288 |
| Description of the share buyback program submitted to the Shareholders’ Meeting of May 22, 2019 | 288 |
| 7.5. Investor relations | 289 |
| 7.6. Share information | 290 |
| Share custodial service | 290 |
| 8. BOARD OF DIRECTORS' REPORT AND DRAFT RESOLUTIONS OF THE SHAREHOLDERS' MEETING OF MAY 22, 2019 | 291 |
| 8.1. Ordinary Shareholder's Meeting | 292 |
| Draft resolutions 1 to 3 | 292 |
| Approval of the financial statements – Appropriation of earnings and setting of dividend | 292 |
| Draft resolution 4 | 293 |
| Determination of the amount of the Directors’ fees | 293 |
| Draft resolution 5 | 294 |
| Authorization to be given to the Board of Directors to undertake operations with regard to the shares of the Company | 294 |
| Draft resolutions 6 to 7 | 297 |
| Renewal of Gonzalve BICH and Elizabeth BASTONI as Directors | 297 |
| Draft resolutions 8 and 9 | 299 |
| Appointment of Maëlys CASTELLA and Marie-Aimée BICH-DUFOUR as Board Members | 299 |
| Draft resolutions 10 to 14 | 302 |
| Approval of the compensation elements and benefits of any type paid or granted for 2018 to the Chairman of the Board, the Chief Executive Officer and the Executive Vice-Presidents | 302 |
| Draft resolution 15 | 309 |
| Compensation policy of the Chairman, Chief Executive Officer and Executive Vice-Presidents | 309 |
| 8.2 Extraordinary Shareholders’ Meeting | 310 |
| Draft resolution 16 | 310 |
| Authorization to be given to the Board of Directors to reduce the share capital by cancellation of shares acquired in accordance with Article L. 225-209 of the French Commercial Code | 310 |
| 8.3 Ordinary and Extraordinary Shareholders’ Meeting | 311 |
| Draft resolution 17 | 311 |
| Authorization to perform formalities | 311 |
| 8.4 Statutory Auditors’ Report on the share capital decrease | 312 |
| 9. ADDITIONAL INFORMATION | 313 |
| 9.1. Documents on display | 314 |
| Memorandum and articles of incorporation | 314 |
| Historical financial information | 314 |
| 9.2. Main press releases | 315 |
| 9.3. Person responsible | 316 |
| Name and function | 316 |
| Declaration by responsible person of the registration document | 316 |
| 9.4. Statutory Auditors and fees | 317 |
| Names and addresses | 317 |
| Change of Statutory Auditors | 317 |
| Fees of the Auditors and the members of their networks | 317 |
| Auditing of historical annual financial information | 317 |
| Interim and other financial information | 317 |
| 9.5. Cross reference table required under European Commission Regulation n°809/2004 | 318 |
| 9.6. Cross reference table with the Annual Financial Report | 321 |
| 9.7. Cross reference table with the management report | 322 |
| 9.8. Cross reference table for environmental and social indicators | 324 |
| 9.9. Glossary | 326 |