BIC - 2020 Universal Registration Document

FINANCIAL STATEMENTS

Parent company financial statements of SOCIÉTÉ BIC (French GAAP)

NOTE 1

MAIN EVENTS

In 2020, BIC made the acquisition of two new subsidiaries: Sibjet Technologies SNC et Djeep SAS. Moreover, an impairment on Cello trademark of 14,929 thousand euros has been accounted during the year.

NOTE 2

ACCOUNTING PRINCIPLES, RULES ANDMETHODS

Fixed assets valuation c) At year end, SOCIÉTÉ BIC checks the existence of internal or external indicators that could lead to a change in the net realizable value of its assets. When the net booked value of fixed assets exceeds the market value or the asset in use, an impairment charge is recorded. d) Long-term investments are recorded at the value at which they were brought into assets. An impairment is booked when the value in use of an investment is less than its purchase cost. The value is determined with reference to Shareholders’ equity or to cash flow projections of the relevant investment, adjusted to take into consideration the importance of these companies to the Group and their development and profit perspectives. In addition, BIC shares purchased pursuant to Article L. 225-209 of the French Commercial Code ( Code de commerce ), not intended exclusively for stock option plans, are recorded within long-term investments. Treasury shares are valued at purchase cost and provision for impairment is booked at year-end when the probable trading value (based on the average share market price during the last month of the fiscal year) is less than purchase cost. Loans in foreign currency are translated at the closing exchange rate. e) Goods are valued at purchase cost, including incidental expenses, in accordance with the weighted average cost method. Impairment provisions are booked, when necessary, to reduce inventory value to the market value. f) Receivables and payables are recorded at nominal value. Receivables are written down by way of provision, when appropriate, to take into consideration recovery risks. Foreign currency denominated receivables and payables are translated at the official closing exchange rate. Unrealized gains from foreign exchange are booked as such, while unrealized losses from foreign exchange are likewise so booked, with a provision for contingencies and losses. Long-term investments Inventory and work-in-process Receivables and payables

The financial statements are prepared in accordance with the accounting policies and methods defined by the French Plan Comptable Général, as presented by Regulation no. 2016-07 of the French Accounting Standards Authority of November 4, 2016 and its subsequent changes repealing Regulation no. 99-03 of the French Accounting Regulatory Commission of April 29, 1999 on annual financial statements. They have been drawn up according to the basic accounting principles of: going concern; ● consistency; ● independence of financial years. ● The items presented in the financial statements are valued on a historical cost basis. The main accounting rules and methods adopted are the following: a) Research and development expenditures are capitalized when major applied research and development projects in progress (above 500,000 euros) can be clearly defined, costs separately identified and reliably measured, and the project has a significant chance of commercial profitability. Capitalized research and development expenditures are amortized on a straight-line basis over a period of three to five years from the commencement of production. Research and development expenditures that do not meet these criteria are expensed in the fiscal year. Patents and technical processes are amortized over their period of protection or use. Software is depreciated on a straight-line basis over a period of three to five years. b) Property, plant and equipment are valued at their purchase price or production cost. Depreciation is calculated on a straight-line basis over periods depending on the asset type: Intangible assets Property, plant and equipment

Buildings

25 years

Fixtures and fittings

8 to 10 years

Vehicles

3 to 4 years

Industrial plant, machinery and fittings

2 to 8 years

Office and IT equipment, furniture

3 to 8 years

279

• BIC GROUP - 2020 UNIVERSAL REGISTRATION DOCUMENT •