BIC - 2020 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

SOCIÉTÉ BIC SA 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 principal place of business is located at the same address. 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 2020 were approved by the Board of Directors’ Meeting of February 16, 2021 and are submitted for approval to the Annual Shareholders’ Meeting to be held on May 19, 2021.

Standards, interpretations and amendments with mandatory application after 2020 and adopted by the European Union In 2020, 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 2020 but not yet adopted by the European Union that may have an impact on the Group’s financial statements amendments to IAS 1 – Presentation of Financial Statements: ● Classification of Liabilities as Current or Non-current; annual Improvements -2018-2020: ● IFRS 1 – First IFRS application (Subsidiary as first adopter), • IFRS 9 – Financial Instruments (Fees included in the 10% • test), illustrative examples of IFRS 16 (Lease incentives); • amendments to IFRS 3 – Business Combinations (Reference to ● the conceptual framework); amendments to IAS 16 – Property, Plant and Equipment ● (Proceeds before intended use); amendments to IAS 37 – Provisions, Contingent Liabilities and ● Contingent Assets (Onerous contracts – Cost of fulfilling a contract); amendments to IFRS 9, IAS 39 and IFRS 7 (Interest Rate ● Benchmark Reform – Phase 2). Analysis on the practical consequences of these new amendments 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) n° 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, 2020. 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, 2020. The following standards and amendments are effective since January 1, 2020 and have been applied to the consolidated financial statements for the period ended December 31, 2020: amendments to IAS 1 and IAS 8 – Definition of Material; ● amendments to References to the Conceptual Framework in ● IFRS Standards; amendments to IFRS 9, IAS 39 and IFRS 7 – Interest Rate ● Benchmark Reform – Phase 1; amendments to IFRS 3 – Business combinations – Definition of ● a business; amendments to IFRS 16 – Leases – Covid-19 Related rent ● concessions. Adoption of new and revised IFRS, interpretations 1-1-2 and amendments Standards, interpretations and amendments effective for periods starting January 1, 2020

218

• BIC GROUP - 2020 UNIVERSAL REGISTRATION DOCUMENT •