BIC - 2018 Registration document

RISKS

INTRODUCTION The BIC Group pursues an active and dynamic approach to risk management. The objective of this approach is to enhance the Group’s capacity in identifying, managing, preventing, mitigating and monitoring key risks that could affect: the Group’s employees, customers, Shareholders, assets, ● environment or reputation; the Group’s ability to achieve its objectives, abide and defend ● by its Values, ethics or laws and regulations. This approach is based on identification and analysis of the main risks to which the BIC Group is exposed, particularly those related to the following areas: financial markets, legal, industry and environment, strategy and operations including product safety.

A description of the risk management system is disclosed in section 2.4 Risk management and internal control procedures implemented by the Company and Insurance– page 53. The risks set out below are not the only risks faced by the BIC Group. Additional risks and uncertainties of which the BIC Group is currently unaware or that are currently deemed not significant could also have an adverse impact on its business, financial position or results. The BIC Group has put in place several measures to mitigate the risks it is facing. One of them, described in section 2.4.4. INSURANCE – Coverage of risks likely to be incurred by the Issuer page 60, is transferring the risks by insuring them.

LIST OF THE MAIN RISKS

2.1.

Operational and Financial Risks

Financial and Market Risks

Foreign Exchange risk Interest Rate risk Counterparty risk Liquidity risk

Legal Proceedings Risks

Facts leading to procedures Procedures (governmental, judicial, etc.)

Industrial and Environmental Risks Strategic and Operational Risks

Risks related to Group acquisitions Risks related to competition/Concentration of distribution Risks related to the concentration on developed markets Risks related to anti-smoking measures

Risks related to manufacturing sites Risks related to IT and technology

Other Special Risks

Counterfeit Regulatory

2.2

Extra financial Risks [NFPS]

Risks related to Plastics: Production of Plastic Waste and Resource Depletion Risks related to Climate Change Risks related to Product Safety and Consumer Health and Safety Risks related to Health and Safety of Team members Risks Related to non-respect of Human Rights (Child labor, international conventions, ILO) Risks related to unfair Practices (Corruption) Risks Related to the Environment Risks Related to Reputation and Brand Risks related to experienced team members and skills

38

• BIC GROUP - 2018 REGISTRATION DOCUMENT •