BIC_REGISTRATION_DOCUMENT_2017

COMMENTS ON THE YEAR Prospects for 2018 and strategy

4.6. Prospects for 2018 and strategy

2018 OPERATIONAL OUTLOOK We expect 2018 Group Net Sales to increase between +1 and +3% on a comparative basis, with all categories contributing to the growth. Major factors affecting sales performance could include continued competitive pressures in Shaver, further inventory reductions from retailers, and continued softness in the Brazilian economy. Gross Profit will be impacted by an increase in raw material costs, higher depreciation, while we will continue to invest in targeted Brand Support and Operating Expenses. 2018 Normalized Income from Operations will also be impacted by sales performance. Based on these factors we expect Normalized Income from Operations margin to be between 17% and 18%. We expect CAPEX to be approximately 150 million euros.

We believe that our greatest opportunity for growth remains the strength of the BIC® brand, combined with the diverse talents of our multinational workforce in more than 160 countries around the world. Our teams are delivering products and programs, including advertising and promotional support, that speak directly to today’s consumers in their local marketplaces, meeting their specific needs.

PERFORMANCE GOALS Sales growth, market share gains, margins, cash flow and a strong balance sheet are the main indicators of the Group performance. In 2018, our priority is to continue to drive sales growth through selected investments in R&D, brand support and CAPEX.

RISKS AND OPPORTUNITIES

RECENT EVENTS In order to drive commercial synergies and strengthen our business within the Asian markets, notably in China, we reorganized our operations in Asia Pacific and closed our Singapore office. In Latin America, BIC direct operations in Nicaragua were closed.

In brief, we foresee the major challenges for 2018 to be: continued economic uncertainty; ● the global geopolitical environment; ● continued foreign currency volatility; ●

an expected increase in raw material costs versus prior years. ● While many of these issues are outside of our control, we will make every effort to minimize the related risks in all aspects of our operations.

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BIC GROUP - 2017 REGISTRATION DOCUMENT