BIC - 2019 Universal Registration Document

Contents2
MESSAGE FROM BIC'S CHIEF EXECUTIVE OFFICER5
BIC AT A GL ANCE6
EXTRACTS FROM THE INTEGRATED REPORT9
1. GROUP PRESENTATION, PERSPECTIVES, AND STRATEGY25
1.1. HISTORY26
1.2. KEY FIGURES29
1.2.1 KEY FINANCIAL FIGURES29
1.2.2 KEY NON-FINANCIAL FIGURES33
1.3. STRATEGY35
1.4. 2020 AND LONG-TERM PERSPECTIVES36
1.5. BUSINESS PRESENTATION38
1.5.1 BUSINESS PRESENTATION BY CATEGORY38
1.5.2 RESEARCH AND INNOVATION43
1.5.3 MANUFACTURING FOOTPRINT44
2. RISKS MANAGEMENT47
INTRODUCTION48
2.1. MAIN RISKS AND RISK ASSESSMENT48
2.2. DESCRIPTION AND MITIGATION OF MAIN RISK FACTORS49
2.3. VIGILANCE PLAN55
2.3.1 REGULATORY FRAMEWORK55
2.3.2 GOVERNANCE55
2.3.3 RISK MAPPING55
2.3.4 ORGANIZATION AND MEASURES FOR THE PREVENTION OF MAJOR NON-FINANCIAL RISKS56
2.4. RISK MANAGEMENT AND INTERNAL CONTROL PROCEDURES IMPLEMENTED BY THE COMPANY AND INSURANCE59
2.4.1 RISK MANAGEMENT AND INTERNAL CONTROL DEFINITIONS AND OBJECTIVES59
2.4.2 COMPONENTS OF RISK MANAGEMENT AND INTERNAL CONTROL OF THE COMPANY AND ITS SUBSIDIARIES60
2.4.3 RISK MANAGEMENT AND INTERNAL CONTROL PARTICIPANTS, SPECIFIC STRUCTURE(S) IN CHARGE/RESPECTIVE ROLES AND INTERACTIONS64
2.4.4 INSURANCE – COVERAGE OF RISKS66
3. OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY67
3.1. THE BIC SUSTAINABLE DEVELOPMENT PROGRAM AND NON-FINANCIAL PERFORMANCE69
3.1.1 WRITING THE FUTURE TOGETHER, A COMMITMENT FOR 2025, ROOTED IN OUR HISTORY AND CONVICTIONS69
3.1.2 GOVERNANCE OF POLICIES AND ACTIONS TAKEN TO PREVENT, REDUCE AND CORRECT THE MAIN CSR RISKS79
3.2. RESPONSIBILITY CONCERNING OUR PRODUCTS81
3.2.1 THE PRODUCTS’ ENVIRONMENTAL PERFORMANCE81
3.2.2 PRODUCT SAFETY86
3.2.3 PRODUCTS DESIGNED TO MEET AND ANTICIPATE CONSUMERS’ EXPECTATIONS89
3.2.4 OPTIMIZED PACKAGING90
3.3. ENVIRONMENTAL RESPONSIBILITY CONCERNING OUR OPERATIONS92
3.3.1 PARTICIPATING IN THE FIGHT AGAINST CLIMATE CHANGE92
3.3.2 REDUCING OUR FACTORIES AND OFFICES’ OTHER ENVIRONMENTAL IMPACTS96
3.4. OUR SOCIAL RESPONSIBILITY TO OUR TEAM MEMBERS100
3.4.1 THE WORKFORCE100
3.4.2 SHARING OUR VALUES, LISTENING TO OUR TEAM MEMBERS102
3.4.3 HEALTH/SAFETY IN THE WORKPLACE102
3.4.4 HEALTH AND WELL-BEING IN THE WORKPLACE104
3.4.5 TEAM MEMBER DEVELOPMENT106
3.4.6 THE REMUNERATION SYSTEM108
3.4.7 PROMOTING DIVERSITY109
3.4.8 SOCIAL DIALOGUE111
3.5. RESPONSIBILITIES RELATED TO OUR SUPPLY CHAIN112
3.5.1 THE RESPONSIBLE PURCHASING APPROACH112
3.5.2 ENSURING RESPECT FOR HUMAN RIGHTS IN THE WORKPLACE113
3.5.3 ETHICS AND THE FIGHT AGAINST CORRUPTION115
3.6. SOCIETAL BENEFITS RELATED TO BIC® PRODUCTS117
3.6.1 WRITING THE FUTURE, TOGETHER– #5 IMPROVING LIVES THROUGH EDUCATION117
3.6.2 PHILANTHROPIC ACTIONS BY BIC AND ITS SUBSIDIARIES118
3.6.3 MAKING OUR PRODUCTS AFFORDABLE TO ALL120
3.6.4 EXPERIMENTING WITH INNOVATIVE ALTERNATIVE DISTRIBUTION MODES THROUGH A SOCIAL BUSINESS INITIATIVE120
3.7. MILESTONES121
3.7.1 EXTRA-FINANCIAL RATINGS121
3.7.2 PERIMETER AND SELECTION OF INDICATORS121
3.7.3 INDICATORS TABLE124
3.7.4 REPORT OF ONE OF THE STATUTORY AUDITORS, APPOINTED AS INDEPENDENT THIRD PARTY, ON THE CONSOLIDATED NON-FINANCIAL STATEMENT127
4. CORPORATE GOVERNANCE129
4.1. ADMINISTRATIVE AND MANAGEMENT BODIES130
4.1.1 COMPOSITION AND FUNCTIONING OF ADMINISTRATIVE AND MANAGEMENT BODIES130
4.1.2 FUNCTIONING OF THE BOARD OF DIRECTORS148
4.2. CORPORATE OFFICERS’ COMPENSATION154
4.2.1 COMPENSATION POLICY FOR THE CHAIRMAN, CHIEF EXECUTIVE OFFICER AND EXECUTIVE VICE-PRESIDENTS OF SOCIÉTÉ BIC FOR 2020154
4.2.2 COMPENSATION AND BENEFITS158
5. COMMENTS ON THE YEAR173
5.1. OPERATIONS AND CONSOLIDATED RESULTS174
THE GROUP IN 2019174
2019 GROUP NON-FINANCIAL PERFORMANCE177
2019 GROUP PERFORMANCE BY CATEGORY177
2019 GROUP PERFORMANCE BY GEOGRAPHICAL AREA179
5.2. FINANCIAL SITUATION AND CASH182
5.3. DIVIDENDS183
5.4. INVESTMENTS184
PRINCIPAL INVESTMENTS OVER RECENT YEARS184
PRINCIPAL INVESTMENTS IN 2019185
PRINCIPAL INVESTMENTS IN PROGRESS: GEOGRAPHIC DISTRIBUTION AND FINANCING METHODS185
PRINCIPAL FUTURE INVESTMENTS185
6. FINANCIAL STATEMENTS187
6.1. CONSOLIDATED FINANCIAL STATEMENTS188
1. CONSOLIDATED INCOME STATEMENT189
2. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME190
3. CONSOLIDATED STATEMENT OF FINANCIAL POSITION191
4. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY193
5. CONSOLIDATED CASH FLOW STATEMENT194
6. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS195
6.2. STATUTORY AUDITOR'S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS246
I. OPINION246
II. BASIS FOR OPINION246
III. JUSTIFICATION OF ASSESSMENTS - KEY AUDIT MATTERS247
IV. SPECIFIC VERIFICATIONS247
V. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS248
VI. RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE CONSOLIDATED FINANCIAL STATEMENTS248
VII. STATUTORY AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS248
6.3. PARENT COMPANY FINANCIAL STATEMENTS OF SOCIÉTÉ BIC (FRENCH GAAP)250
1. INCOME STATEMENT251
2. BALANCE SHEET252
3. CASH FLOW STATEMENT254
4. NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS255
5. ADDITIONAL INFORMATION ON THE PARENT COMPANY FINANCIAL STATEMENTS268
6.4. STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS269
I. OPINION269
II. BASIS FOR OPINION269
III. JUSTIFICATION OF ASSESSMENTS - KEY AUDIT MATTERS269
IV. SPECIFIC VERIFICATIONS270
V. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS271
VI. RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIAL STATEMENTS271
VII. STATUTORY AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS271
6.5. STATUTORY AUDITORS’ SPECIAL REPORT ON REGULATED AGREEMENTS273
7. INFORMATIONS ABOUT THE ISSUER275
7.1. INFORMATION ON THE COMPANY276
HISTORY AND DEVELOPMENT OF THE ISSUER276
MEMORANDUM AND ARTICLES OF INCORPORATION276
7.2. SHARE CAPITAL278
7.3. SHAREHOLDING280
SHARE CAPITAL BREAKDOWN280
EMPLOYEES’ SHAREHOLDING281
CROSSING OF LEGAL THRESHOLDS281
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)281
7.4. TREASURY SHARES AND SHARE BUYBACK282
SHARE BUYBACK PROGRAM – OPERATIONS CARRIED OUT IN 2019282
DESCRIPTION OF THE SHARE BUYBACK PROGRAM SUBMITTED TO THE SHAREHOLDERS’ MEETING OF MAY 20, 2020282
7.5. INVESTOR RELATIONS283
7.6. SHARE INFORMATION284
SHARE CUSTODIAL SERVICE284
8. BOARD OF DIRECTORS’ REPORT AND DRAFT RESOLUTIONS OF THE SHAREHOLDERS’ MEETING OF MAY 20, 2020285
8.1. ORDINARY SHAREHOLDERS’ MEETING287
DRAFT RESOLUTIONS 1 TO 3287
Approval of the financial statements – Appropriation of earnings and setting of dividend287
DRAFT RESOLUTION 4288
Determination of the amount of the Directors’ fees288
DRAFT RESOLUTION 5289
Authorization to be given to the Board of Directors to undertake operations with regard to the shares of the Company289
DRAFT RESOLUTIONS 6 TO 7292
Renewal of Marie-Pauline Chandon-Moët et Candace Matthews as Directors292
DRAFT RESOLUTION 8294
Ratification of the co-optation of Timothée Bich as a Director to succeed a Director who has resigned294
DRAFT RESOLUTION 9295
Renewal of Timothée Bich as Director295
DRAFT RESOLUTION 10295
Appointment of Jake Schwartz as Director295
DRAFT RESOLUTIONS 11 TO 14297
Approval of the compensation elements and benefits of any type paid or granted for 2019 to the Chairman of the Board, the Chief Executive Officer and the Executive Vice-Presidents297
DRAFT RESOLUTION 15304
Compensation policy of the Chairman, Chief Executive Officer and Executive Vice-President304
8.2. EXTRAORDINARY SHAREHOLDERS’ MEETING305
DRAFT RESOLUTION 16305
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 Code305
DRAFT RESOLUTION 17306
Delegation of authority to be given to the Board of Directors to increase the share capital by issuing new ordinary shares and/or securities giving access to the share capital, with preservation of Shareholders’ preferential rights of subscription306
DRAFT RESOLUTION 18308
Delegation of authority to be given to the Board of Directors to increase the number of securities to be issued in the event of a share capital increase decided by the Board of Directors under resolution 17308
DRAFT RESOLUTION 19308
Delegation of authority to be given to the Board of Directors in order to decide to increase the share capital on one or several occasions by incorporation of reserves, profits or premiums or other sums of money whose capitalization shall be accepted308
DRAFT RESOLUTION 20310
Delegation of authority to be given to the Board of Directors in order to proceed with one or several share capital increase(s) reserved for employees310
DRAFT RESOLUTION 21311
Cancellation of preferential rights of subscription in the event of a share capital increase(s) reserved for employees as described in Resolution 20311
DRAFT RESOLUTION 22312
Amendment to Article 10 bis of the Articles of incorporation in order to comply with the new legal requirements concerning the appointment of Directors representing employees312
DRAFT RESOLUTION 23313
Amendment to Article 11 of the Articles of incorporation in order to enable the Board of Directors to take decisions by way of written consultation as permitted by the applicable laws and regulations313
DRAFT RESOLUTION 24313
Amendment to Article 13 of the Articles of incorporation related to the directors' compensation313
8.3. ORDINARY AND EXTRAORDINARY SHAREHOLDERS’ MEETING314
DRAFT RESOLUTION 25314
Authorization to perform formalities314
9. ADDITIONAL INFORMATION315
9.1. DOCUMENTS ON DISPLAY316
MEMORANDUM AND ARTICLES OF INCORPORATION316
HISTORICAL FINANCIAL INFORMATION316
9.2. MAIN PRESS RELEASES317
9.3. DECLARATION BY RESPONSIBLE PERSON OF THE UNIVERSAL REGISTRATION DOCUMENT318
9.4. STATUTORY AUDITORS AND FEES319
NAMES AND ADDRESSES319
CHANGE OF STATUTORY AUDITORS319
FEES OF THE AUDITORS AND THE MEMBERS OF THEIR NETWORKS319
AUDITING OF HISTORICAL ANNUAL FINANCIAL INFORMATION319
INTERIM AND OTHER FINANCIAL INFORMATION319
9.5. GLOSSARY320
CROSS REFERENCE TABLE FOR UNIVERSAL REGISTRATION DOCUMENT323
CROSS REFERENCE TABLE WITH THE ANNUAL FINANCIAL REPORT325
CROSS REFERENCE TABLE WITH THE MANAGEMENT REPORT326
CROSS REFERENCE TABLE FOR ENVIRONMENTAL AND SOCIAL INDICATORS328
CROSS REFERENCE TABLE OF THE CORPORATE GOVERNANCE REPORT329

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