BIC - 2019 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

NOTE 2

OPERATING SEGMENTS

Accounting policies The core principle of IFRS 15 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This core

principle is presented in a five-step model: Identify the contract(s) with a customer; ● Identify the performance obligations in the contract; ● Determine the transaction price; ●

Allocate the transaction price to the performance obligations in the contract; ● Recognize revenue when (or as) the entity satisfies a performance obligation. ●

The effects on the consolidated financial statements are limited and concern certain contractual clauses in the sales agreements. The main impact is related to business development funds that consist of general brand promotions or advertising services (that the Group could have also acquired from a third-party advertising supplier) and is accounted for as an operating expense instead of net sales.

General information 2-1 BIC Group operating segments have been determined based on the reports regularly provided to the management and used to make strategic decisions. The management, composed of operational representatives responsible for the continents, representatives of the categories and cross-functional areas, considers the business from a product

category perspective, knowing that each category can be reviewed for a specific geographic area if necessary. The product categories are as follows: Stationery, Lighters, Shavers, Other Products. These operating segments receive their revenues from the production and distribution of each product category.

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •