BIC_REGISTRATION_DOCUMENT_2017

GROUP PRESENTATION Business presentation

Shavers The wet shave market generates annual Net Sales revenue of more than 12.0 billion euros, and accounts for the bulk (60%) of total “hair removal” market segment revenue.

A lighter contains pressurized gas placed in a plastic reservoir in order to produce a flame. Lighters must be designed and manufactured in compliance with very strict safety, quality and performance requirements. International Safety Standards protect consumers from unsafe lighters. Two key standards apply to pocket lighters: international lighter safety standard ISO 9994, which clearly sets ● out the basic safety requirements for a lighter. ISO 9994 is the reference in major countries such as Canada (1989), Russia (2000), Brazil (2002), Argentina (2003), Thailand (2003), Mexico (2004), South Korea (2005), South Africa (2002), the 28 countries of the European Union (2006), Japan (2011), Indonesia (2011) and Turkey (2012); child-resistant requirements. A child-resistant lighter is purposely ● modified to make it more difficult to operate. The basic requirement under this standard is a lighter that cannot be operated by at least 85% of children under 51 months old. Child-Resistant legislation is the reference in major countries such as the U.S. (1994), Canada (1995), Australia (1997), New Zealand (1999), the 28 countries of the European Union (2006), Japan (2011), South Korea (2012) and Mexico (2016). Low-cost lighters too often fail to comply with safety standards. Since the late 80’s, cheap lighter models imported from Asian countries have been gaining market share and currently account for more than half of the global market (in volume). In this competitive landscape, BIC defends its position and continues to fight for enhanced lighter safety and quality. BIC® lighters comply with stringent safety, quality and performance requirements. For example, the gas reservoirs of BIC® lighters are made from POM (PolyOxyMethylene), a high-performance resin with very high impact resistance. This means that BIC® lighters contain more gas and give more lights thanks to the thinness of their wall. They are also filled with pure isobutane, which guarantees the stability of the flame over the entire life of the lighter. BIC® lighters are sold either through traditional distribution channels (such as convenience stores and tobacconists) or retail mass market distribution outlets. BIC’s objective in the lighter business is to consolidate its position as the only truly global branded lighter: by supporting the extension and enforcement of international ● safety standards; by accelerating the development of value-added products (sleeves ● and multipurpose lighters).

GLOBAL WET SHAVER MARKET IN 2016 (Euromonitor – 2016) By geographical area

Other 24%

26% Western Europe

8% Eastern Europe

14% Latin America

28% North America

By product segment

Double edge 3%

35%

One-piece

62%

Refillable

As shown above, this market can be separated into three product segments, with refillable and one-piece shavers mainly driving market growth. Within these two segments, new products drive most the market growth by offering enhanced performance and added features. Due to the relentless pace of new product development, a productive new product pipeline is an essential requirement for ongoing success.

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BIC GROUP - 2017 REGISTRATION DOCUMENT