BIC - 2018 Registration document

COMMENTS ON THE YEAR

Operations and consolidated results

2018 GROUP PERFORMANCE BY CATEGORY

BIC GROUP NET SALES AND INCOME FROM OPERATIONS (IFO) BY PRODUCT CATEGORY 2017 (RESTATED FROM IFRS 15) - 2018

Stationery

Lighters

Shavers

Other Products

(in million euros)

Net Sales

IFO Net Sales

IFO Net Sales

IFO Net Sales

IFO

2017 2018

804.2 771.9

54.7

707.4 685.8

277.3 242.5

459.4 438.0

59.8

70.4

(17.0)

(14.1)

43.7

54.0

(13.4)

BIC GROUP IFO AND NORMALIZED (A) IFO BY PRODUCT CATEGORY 2017 (RESTATED FROM IFRS 15) - 2018

Stationery

Lighters

Shavers

Other Products

(in million euros)

Norm. IFO

IFO Norm. IFO

IFO Norm. IFO

IFO Norm. IFO

IFO

2017 2018

66.3

54.7

277.6 247.0

277.3 242.5

60.0

59.8

(4.4)

(17.0)

62.8

(14.1)

45.4

43.7

(2.8)

(13.4)

See glossary § 9.9. (a)

BIC GROUP IFO AND NORMALIZED (A) IFO MAGINS BY PRODUCT CATEGORY 2017 (RESTATED FROM IFRS 15) - 2018

Stationery

Lighters

Shavers

(in %)

Norm. IFO margin

IFO margin Norm. IFO margin

IFO margin Norm. IFO margin

IFO margin

2017 2018

8.3

6.8

39.2

39.2

13.1

13.0

8.1

(1.8)

36.0

35.4

10.4

10.0

See glossary § 8.9. (a)

Stationery Stationery Full Year 2018 Net Sales decreased by 4.0% as reported and increased by 1.7% on a comparative basis. Full Year 2018 volumes were relatively flat. In Europe , while markets remained soft, BIC’s Net Sales grew ● low-single digit, fueled by a robust Back-to-School season across most European countries, notably in France and in the UK where BIC outperformed the market gaining 0.7 points in value share (Year-to-date December 2018). This was driven by the ongoing success of BIC ® Gelocity Illusion erasable pen, BIC ® 4-Color Shine pen in Western Europe and the BIC ® Round Stic in Eastern Europe. North America ’s Net Sales grew mid-single digit, fueled by a ● strong Back-to-School season where BIC outperformed the market. Our focus towards more value-added products was successful thanks to the performances of the BIC ® Gelocity ® Quick Dry gel. This resulted in 0.8 points value share gains (Year-to-date December 2018) in the gel segment, the fastest growing segment in Stationery. Growth drivers also included e-commerce sales where BIC outperformed the online market, gaining 0.8 points value share (Year-to-date December 2018)

In Latin America , Net Sales increased mid-single digit driven ● by a robust Back-to-School season in Mexico, with strong performance in both Ball Pen and in Coloring segments. This more than offset the challenging year for Brazil as we faced on-going inventory adjustments by customers, negative impacts from the transportation strike as well as strong competitive pressure. The Middle-East and Africa region Net Sales were stable. ● Growth drivers included market share gains in South Africa, thanks to a good in-store visibility and strong Back-to-School sell-in. This was offset by importation legislation issues in North Africa. In India , Cello Pens’ Domestic Net Sales increased low-single ● digit as Cello continued its strategy of portfolio streamlining and focused on its champion brands such as Butterflow TM and Butter Gel, allowing BIC to gain 0.8 points value share (Year-to-date December 2018, Market Pulse) Full Year 2018 Stationery normalized IFO margin was 8.1% compared to 8.3% in 2017 as a result of an increase in raw material costs and operating expenses, only partially offset by lower brand support.

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •