BIC_REGISTRATION_DOCUMENT_2017

COMMENTS ON THE YEAR Operations and consolidated results

2017 GROUP PERFORMANCE BY CATEGORY

BIC GROUP NET SALES AND INCOME FROM OPERATIONS (IFO) BY PRODUCT CATEGORY 2016-2017

Stationery

Lighters

Shavers

Other Products

(in million euros)

Net Sales

IFO Net Sales

IFO Net Sales

IFO Net Sales

IFO

2016 2017

780.3 791.8

67.9

696.4 703.9

275.3 278.0

467.0 454.4

68.6

82.1

(8.4)

54.9

60.4

70.2

(17.0)

BIC GROUP IFO AND NORMALIZED (a) IFO BY PRODUCT CATEGORY 2016-2017

Stationery

Lighters

Shavers

Other Products

(in million euros)

Norm. IFO

Norm. IFO 277.3 278.3

Norm. IFO

Norm. IFO

IFO

IFO

IFO

IFO

2016 2017

70.1

67.9

275.3 278.0

69.6

68.6

(7.8)

(8.4)

66.5

54.9

60.6

60.4

(4.4)

(17.0)

BIC GROUP IFO AND NORMALIZED (a) IFO MAGINS BY PRODUCT CATEGORY 2016-2017

Stationery

Lighters

Shavers

(in %)

Norm. IFO margin

Norm. IFO margin

Norm. IFO margin

IFO margin

IFO margin

IFO margin

2016 2017

9.0

8.7

39.8

39.5

14.9

14.7

8.4

6.9

39.5

39.5

13.3

13.3

see glossary § 8.9 (a)

Stationery Stationery full-year 2017 Net Sales increased by 1.5% (up 3.4% on a comparative basis). Full year 2017 volumes grew by 2.4%. Developed markets: Net Sales grew mid-single digit in Europe, ● fueled by a good Back-to-School season in both Western and Eastern Europe, the success of new products (the BIC® Gelocity Illusion erasable pen, BIC® 4-color 3+1 pen and the BIC® Intensity Writing felt pen) and targeted Brand Support, notably on the 4 Colors and BIC® Kids ranges. In a slightly declining market, North America’s Net Sales were slightly up, driven by a strong Back-to-School season. Key growth drivers included successful new added-value product launches including BIC® Gelocity® Quick Dry gel and the BIC® Velocity® Max Mechanical Pencil.

Developing markets: posted low-single digit growth. In Latin ● America, Net Sales increased low-single digit. We continued to support our growth across the region with impactful advertising campaigns, notably in the ball pen segment. During the Back-to-School season, we gained market share in Mexico across the entire range, thanks mostly to our core products. The Middle-East and Africa region delivered solid growth along with an outstanding performance in South Africa thanks to strong in-store visibility. In India, Cello Pens’ Domestic Net Sales increased high-single digit driven by the increased focus on Champion brands (especially ButterflowTM), New Product launches (Gel Tech range) and continued development of our visibility strategy (“Cello® seen, Cello® sold”). Full Year 2017 Stationery normalized IFO margin was 8.4% compared to 9.0% in 2016 (9.4% excluding the impact of the special employee bonus) due to higher brand support investment.

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BIC GROUP - 2017 REGISTRATION DOCUMENT

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