BIC - 2019 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

SOCIÉTÉ BIC is a French public limited company (société anonyme), subject to all laws governing commercial companies in France, and particularly to the provisions of the French Commercial Code. The Company is headquartered at 14, rue Jeanne d’Asnières, 92110 Clichy and is listed on Euronext. The consolidated financial statements reflect the accounting position of Société BIC and its subsidiaries (the “Group”). They are presented in euros and rounded to the nearest thousand. The Group’s business is the production and sale of stationery, lighters and shavers.

NOTE 1

MAIN RULES AND ACCOUNTING POLICIES

Approval of the financial statements The Group’s consolidated financial statements for FY 2019 were approved by the Board of Directors’ Meeting of February 11, 2020 and are submitted for approval to the Annual Shareholders’ Meeting to be held on May 20, 2020.

We have negatively adjusted the Shareholders’ equity from 12.9 million euros as of January 1, 2019 (counterpart deferred tax liability see Note 13). This risk relates to a tax uncertainty on one of our Brazilian subsidiaries and the tax deductibility of certain expenses recognized in the financial statements of this subsidiary. We have also reclassified tax risks provisions amounting to 19.9 million euros related to income tax, from tax risk provisions (see note 17) to deferred tax liabilities (see note 13) as of January 1, 2019. Amendments to IAS 19 – Employee Benefits – Plan ● Amendment, Curtailment or Settlement; Annual improvements to IFRSs 2015-2017 Cycle : ● IAS 12 – Income Taxes, • IFRS 3 – Business Combinations. • The Group has implemented IFRS 16 – Leases since January 1, 2018. Standards, interpretations and amendments with mandatory application after 2019 and adopted by the European Union In 2019, the Group did not elect to early apply any standard, interpretation or amendment approved by the European Union. Standards, interpretations and amendments issued with mandatory application after 2019 but not yet adopted by the European Union that may have an impact on the Group’s financial statements Amendment of the references of the conceptual framework in ● IFRS standards. Analysis on the practical consequences of these new regulations is in progress. 1-1-3 The consolidated financial statements include the financial statements of the parent company, SOCIÉTÉ BIC, and of the entities controlled by SOCIÉTÉ BIC (“its subsidiaries”). An investor controls an investee if it has the exposure, or rights, to variable returns from its involvement with the investee and the ability to use its power over the investee to affect the amount of the investor’s returns. The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to align their accounting policies with those used by other entities of the Group. All intra-Group transactions, balances, income and expenses are eliminated on consolidation. Consolidation of subsidiaries

1-1

Accounting policies

General policies 1-1-1 Pursuant to European regulation (EC) No. 1606/2002 of July 19, 2002 on international accounting standards, the consolidated financial statements of the Group have been prepared in accordance with accounting principles as defined by the International Accounting Standards Board (IASB) as adopted by the European Union as of December 31, 2019. The international standards include the IFRS (International Financial Reporting Standards), the IAS (International Accounting Standards), as well as their SIC (Standing Interpretations Committee) and IFRIC (International Financial Reporting Interpretations Committee) interpretations. At the end of the year, there were no differences between the reference standards used and the standards adopted by the IASB, for which application is mandatory for the period presented. The financial statements have been prepared on a historical cost basis, except for the valuation of certain financial instruments measured at the fair value. The main accounting policies remain unchanged compared to the prior year, except for the following policies, effective since January 1, 2019. Standards, interpretations and amendments effective for periods starting January 1, 2019 The following standards and amendments are effective since January 1, 2019 and have been applied to the consolidated financial statements for the period ended December 31, 2019: IFRIC 23 – Uncertainty over Income Tax Treatments ; ● IFRIC 23 is an interpretation which provides guidance on how to account for uncertain tax treatments and positions. It clarifies and set up principles for recognition and measurement of assets and liabilities for income tax related risks, when there is uncertainty over tax positions taken. Only income tax is in the scope. This Interpretation is effective for annual reporting beginning January 1, 2019 using the partial retrospective method. Adoption of new and revised IFRS, interpretations 1-1-2 and amendments

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •