BIC - 2019 Universal Registration Document

COMMENTS ON THE YEAR

Operations and consolidated results

Developing markets Developing markets include Latin America (Mexico, Central America, the Caribbean, and South America), the Middle-East, Africa, Oceania and Asia. In 2019, Net Sales reached 626.1 million euros, down 3.1% on a comparative basis. Latin America BIC experienced poor Back-To-School performance due to a challenging competitive environment. Yet in Shavers, Brazil performed successfully and reached its historical market share record. In 2019, Latin America Net Sales decreased low-single-digit on a comparative basis. Stationery: Net Sales decreased by approximately 10%. ● Performance at the beginning of the year was negatively impacted by PIMACO (our manufacturer and distributor of adhesive labels) as well as by weak execution in Ecuador during H1. During the 2019 Back-to-School seasons, while we outperformed a declining market in Brazil, we lost market share in Mexico as a result of the poor performance of Ball Pen and Graphite segments in a highly competitive environment. Lighters: Net Sales grew mid-single digit driven by Brazil, ● wherein a flat market, BIC was in line with the market thanks to promotional activities across the country. Performance was also driven by the price increase implementation in June as well as higher volumes in the direct channel. Shavers: BIC delivered mid-single-digit growth driven by the ● performance of premium products and distribution gains into convenience stores in Mexico. In Brazil, BIC outperformed the market thanks to the success of our three-blade offering and we reached a historical record in market share in volume and value.

Middle-East and Africa/India In Africa, our new up-and-running facility in Kenya was inaugurated in March, following the Haco Industries’ acquisition end of 2018. In line with BIC’s aim to be closer to its markets and consumers, BIC acquired in October Lucky Stationery in Nigeria, the #1 writing instrument manufacturer. In India, the overall trading environment remained challenging, and Cello’s performance continued to be affected by the level of inventory carried by Superstockists. Stationery: In East Africa, the transfer of Haco Industries Ltd.’ ● manufacturing facilities and distribution activities drove BIC Net Sales to grow double-digit in the region. In South Africa, after a healthy Back-to-School at the beginning of the year, BIC outperformed the stationery market during the year. In India, Cello Pens was affected by the high level of superstockists’ inventories, as well as our on-going strategy of portfolio streamlining. This caused a double-digit decrease in Domestic Sales. Shavers: Net Sales were up low single-digit driven by good ● performance in North Africa, and by strong promotional activities with BIC ® 1 during the African Cup of Nations in West African countries and South Africa. Asia-Pacific Stationery : in Australia, BIC gained market share in a declining ● market, while performance was soft in South East Asia. Lighters : good performance in Oceania, thanks to Australia ● and South East Asia. Shavers: in a declining non-refillable shaver market in ● Australia, performance was impacted by a tough competitive environment.

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •