BIC - 2019 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

Net cash from investing activities Net cash from investing activities amounted to -110.8 million euros in 2019 compared to -109.9 million euros in 2018. During 2019 and 2018, there was no disposal of individually significant fixed assets (c) . During 2019, the Group disbursed 104.9 million euros property, plant and equipment and intangible assets (including 8.7 million euros related to the change in fixed asset supplier accounts) (g) comparedto 125.4 million euros in 2018 (including 1.6 million euros related to assets payables variance). Purchases of property, plant and equipment do not include finance leases booked as a counterpart to a financial debt, as these transactions do not have any impact on cash (g) . The amount of financial assets classified under “Other current financial assets” refers to investments not eligible for classification as cash & cash equivalents under IAS 7. As of December 31, 2019, these investments consisted of units of UCITS and negotiable debt securities, all of which are liquid within 5 days (h) . The transfer of Haco Industries Kenya Ltd writing instrument manufacturing and distribution sites to BIC was completed in late 2018 (i) . 2.4 million euros was paid in 2019 in respect of this acquisition. (i) In July 2019, BIC announced that it has signed a definitive agreement to acquire 100% of Lucky Stationary Nigeria Ltd (LSNL). 13.8 million euros was paid in 2019 in respect of this acquisition. (i) In 2018, the balance of 9.2 million euros relating to Bic Graphic divestiture in 2017 was received. (i)

BIC Sport was sold to Tahe Outdoors at the end of 2018 (i) . Net proceeds on disposal of 2.7 million euros represent the proceeds net of cash and cash equivalents of the entities divested and net of related costs. There was no disposal of individually significant fixed assets during 2018 et 2019 (c) . Net cash from financing activities Net cash from financing activities amounted to -210.8 million euros during 2019 compared to -226.5 million euros in 2018. The dividends paid represent the dividends paid by SOCIÉTÉ BIC to its Shareholders (see Note 21) (j) . As of December 31, 2019, new borrowings amounted to 2.9 million (mainly in Kenya) (k) . In 2019, 478,667 shares were repurchased by SOCIÉTÉ BIC for 39.2 million euros. Under the liquidity agreement, SOCIÉTÉ BIC bought 304,728 shares for 20.5 million euros, and sold 287,373 shares for 19.2 million euros. Moreover, in early 2019, SOCIÉTÉ BIC received 0.5 million euros related to stock options exercised at the end of 2018. (l) In 2018, 687,396 shares were repurchased by SOCIÉTÉ BIC for 54.0 million euros and 1,706 shares were repurchased by BIC Corporation for an amount of 0.2 million euros. Under the liquidity agreement, SOCIÉTÉ BIC bought 583,915 shares for 48.2 million euros and sold 580,470 shares for 48.5 million euros. In addition, 68,396 options were exercised in the period for 4.4 million euros, including 0.5 million euros which had not yet been received at December, 31 2018. Moreover, in early 2018, SOCIÉTÉ BIC received 0.7 million euros related to stock options exercised at the end of 2017 (l) .

NOTE 21

DIVIDENDS

For the 2018 fiscal year, an ordinary dividend of 3.45 euros per share was distributed to Shareholders on June 5, 2019. For the 2017 fiscal year, an ordinary dividend of 3.45 euros per share was distributed to Shareholders on May 30, 2018.

NOTE 22

EXPOSURE TOMARKET RISKS

Counterpart risk 22-1 All financial instruments are set up with banking institutions awarded top ratings by international rating agencies, making counterparty risk very low. The minimum Standard & Poor’s long-term rating of the main banking counterparties is A-, the rating range being from A+ to A-. Cash investment decisions are subject to strict counterparty risk assessment (both depositories and custodians). The majority of the portfolio as of December 31, 2019 is on investment grade-rated supports. Counterparty risk is estimated not significant as of December 31, 2019.

22-2

Foreign exchange risk

See Note 24-2.

22-3

Interest rate risk

See Note 24-3.

Liquidity risk 22-4 The Group manages its equity such as to maintain a positive and liquid cash position, so as to be able to carry out its development and/or external growth strategy.

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •