BIC - 2018 Registration document

RISKS

Operational and financial risks

Risks related to manufacturing sites

Risk Identification

Risk Mitigation

As a result of its manufacturing activities, the BIC Group may potentially be exposed to events of various origins (such as natural disasters, accidents or economic/social/political turmoil) that could disrupt or interrupt a site’s activity. Since the BIC Group is dependent on its production facilities to maintain and develop its sales, the interruption of a production site could have a negative impact on the Group’s business.

The BIC Group has therefore put in place a pro-active approach to industrial risk prevention through regular audits of protection mechanisms and investment in equipment in buildings and production tools. In addition, each category pursues a policy of diversification in terms of geography and production capacity. Moreover, a strong social climate and careful management of supplies, as well as continuity plans ensuring the presence or restoration of critical functions, mitigate the potential impact and minimize the occurrence of such events. The BIC Group has also taken out insurance programs (see Chapter 2.4.4. Insurance – Coverage of risks likely to be incurred by the issuer) page 60.

Risks related to IT and technology

Risk Identification

Risk Mitigation

We address all aspects related to IT risk. These are divided into three main categories: Risks related to the intrusion to steal sensitive data; • Risks related to the damage or the neutralization of our IT capacities; • Risks related to service outage for unplanned downtime of our systems. • The consequences of the materialization of these risks are: Theft of sensitive data; • Extortion of all kinds; • Business interruption related to the unavailability of the systems. •

The IT security management policy was put in place several years ago and, year after year, always strengthened. Although zero risk does not exist, the BIC Group has not yet had to suffer from any of the cyber-attacks that have otherwise hit other similar companies. To this end in 2018 besides the daily management of our protections, we have: finished the systematic audit of our factories, started in previous years; • implemented systematic phishing testing campaigns to educate users • about fraudulent emails; provided specialized e-learning on the themes of cyber-security; • accelerated the migration of our proprietary infrastructures to cloud • services.

OTHER SPECIAL RISKS Counterfeits

Risk Identification

Risk Mitigation

Counterfeits of the most well-known BIC Group products circulate, principally throughout Africa, the Middle East, Eastern Europe and South America. They are mostly produced in Asia. These counterfeits, often of low quality, are mainly focused on the shape of our products and on the BIC ® trademark.

In order to protect our brand image and our business interests, the BIC Group, through its Legal Department, is fighting against these counterfeits, working in close cooperation with local authorities and law enforcement agencies and initiating court and administrative actions.

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •