BIC - 2020 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

A preliminary goodwill amounting 41.7 million US dollars (34 million euros as of December 31, 2020) has been determined based on the fair value of net assets of Rocketbook at the acquisition date. This amount is provisional as of December 31, 2020. The purchase price allocation was finalized as of December 31, 2020 and the preliminary goodwill was allocated to the assets as follows: the Rocket trademark amounting 14.8 million US dollars, i.e. ● 12.1 million euros as of December 31, 2020 (see note 11); the customer relationship amounting 0.8 million US dollars, i.e. ● 0.7 million euros as of December 31, 2020 (see note 11); the patent amounting 5.7 million US dollars, i.e. 4.6 million ● euros as of December 31, 2020 (see note 11); the related deferred tax liability amounting 6.4 million US ● dollars, i.e. 5.2 million euros as of December 31, 2020 (see note 13).

The goodwill amounts thus 26.8 million US dollars, i.e. 21.9 million euros as of December 31, 2020 (see note 10). On December 15, 2020 – BIC announced that it has signed a Purchase and Sale Agreement to sell its Brazilian adhesive label business, PIMACO, to Grupo CCRR for 40 million Brazilian real (approximately 6.5 million euros). The transaction must be approved by the Brazilian antitrust authorities, and the closing is expected in the first quarter of 2021. Given the immaterial nature of this disposal, we have not reclassified the assets and liabilities of PIMACO as assets and liabilities held for sale, nor have we restated the income statement and cash flow statement in accordance with IFRS 5 "Non-current assets held for sale and discontinued operations".

Subsequent events 1.3 On February 11 th , BIC has announced that it has signed with a subsidiary of BNP Paribas Real Estate and Citallios the final sale of its Clichy-La-Garenne-based (France) Headquarter and BIC Technologies sites for an amount of 175 million euros, representing approximately a 169 million euros gross capital gain.

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 According to IFRS 8, BIC Group operating segments have been determined based on the reports regularly provided to the management and used to make strategic decisions. The measurement policies that the Group uses for segmental reporting under IFRS 8 are the same as those used in its financial statements. 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. These operating segments receive their revenues from the production and distribution of each product category.

Following the new organization announced at the time of BIC’s transformation plan launched in February 2019, a new reporting structure has been put in place starting in 2020. The unallocated costs have been removed from Categories’ Income From Operations and Normalized Income From Operations, and will be presented separately: Stationery; ●

Lighters; ● Shavers; ● other products; ● unallocated costs. ● Unallocated costs include: net costs (balance of income and expenses): ●

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• BIC GROUP - 2020 UNIVERSAL REGISTRATION DOCUMENT •