BIC - 2019 Universal Registration Document

GROUP PRESENTATION, PERSPECTIVES, AND STRATEGY

Business presentation

Shavers The wet shave market generates annual revenue of around 10.5 billion euros and accounts for the majority (~60%) of total “hair removal” market segment, in value.

A lighter contains pressurized gas placed in a reservoir to produce a flame. Lighters must be designed and manufactured in compliance with rigorous safety, quality and performance requirements. International Safety Standards protect consumers from unsafe lighters. Two key standards apply to pocket lighters: international lighter safety standard ISO 9994, which sets out ● the basic safety requirements for a lighter. ISO 9994 is the reference in major countries such as Canada (1989), Russia (2000), Brazil (2002), Argentina (2003), Thailand (2003), Mexico (2004), South Korea (2005), South Africa (2002), the 28 countries of the European Union (2006), Japan (2011), Indonesia (2011) and Turkey (2012); child-resistant requirements. A child-resistant lighter is ● purposely modified to make it more difficult to operate. The basic requirement under this standard is a lighter that can't be operated by at least 85% of children under 51 months old. child-resistant legislation is the reference in major countries such as the U.S. (1994), Canada (1995), Australia (1997), New Zealand (1999), the 28 countries of the European Union (2006), Japan (2011), South Korea (2012) and Mexico (2016). Low-cost lighters too often fail to comply with safety standards. Since the late ’80s, lighter models imported from Asian countries have been gaining market share and currently account for more than half of the global market (in volume). To fight against these low-cost imports, in 2018, BIC filed an infringement complaint with the European Commission for lack of surveillance of non-compliant Lighters in France and Germany. In this competitive landscape, BIC defends its position and continues to fight for enhanced lighter safety and quality. BIC ® lighters comply with stringent safety, quality, and performance requirements. For example, the gas reservoirs of BIC ® lighters are made from POM (PolyOxyMethylene), a high-performance resin with very high impact resistance. This means that BIC ® lighters contain more gas and allows more ignitions thanks to the thinness of their wall. They are also filled with pure isobutane, which guarantees the stability of the flame over the entire life of the lighter. BIC ® lighters are sold either through traditional distribution channels (such as convenience stores and tobacconists) or retail mass-market distribution outlets. BIC’s objective in the lighter business is to consolidate its position as the only genuine global branded lighter: by supporting the extension and enforcement of international ● safety standards; by accelerating the development of value-added products ● (sleeves and multipurpose Lighters).

GLOBALWET SHAVE MARKET IN 2018 (Euromonitor – 2018) By geographical area

Other 23%

9% Eastern Europe

15% Latin America

26% Western Europe

27% North America

By product segment

Double Edge 3%

39%

OnePiece

59%

Refillable

This market is divided into three product segments: double-edge, one-piece, and refillable. Within the one-piece and refillable segments, new products drive most of the market growth by offering enhanced performance and added features. Due to the relentless pace of new product development, a productive new product pipeline is an essential requirement for ongoing success.

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •