BIC_REGISTRATION_DOCUMENT_2017

GROUP PRESENTATION Research and Innovation

1.4. Research and Innovation

ultra-smooth inks for ball pens; • broadest range of ball pen ink colors, allowing for the largest • color pallet in the segment; a unique two-toned graphite pencil with BIC Xtra Fun pencil; • new graphite lead for mechanical pencils that results in • smoother and darker writing. In Lighters, new product design and product and process ● innovation in gas lighters are strictly controlled due to the potentially dangerous nature and widespread uses of the product. Every BIC® lighter remains safe over its entire life cycle – even in the event of any foreseeable misuse. Product developments are supported by several patents and model applications . In Shavers, research is organized around multi-disciplined ● project/product development teams composed of blade, design, engineering, packaging, quality and industrialization. 15 to 20 new products are developed each year, ranging from line extensions to new product launches. BIC uses in-house and external panels of experts to evaluate and validate product performance under real conditions. BIC has also forged basic research partnerships with large universities and research labs focusing on shaving efficiency and manufacturing processes. Over the last five years, BIC has launched many innovations in the market such as: for Men: BIC® Easy/Hybrid and BIC® Flex 5; • for Ladies: BIC Soleil Balance, BIC® Soleil Glow® and BIC® Soleil • Shine.

Since the creation of the Company in the early 50’s, BIC has pursued a clear vision: “Offer simple, inventive and reliable products, for everyone, everywhere, every time”. Since then, the Group has been dedicated to making available and affordable everyday products for everyone and research and innovation are part and parcel of BIC’s DNA. In 2017, there were some 300 employees working in the research, development and innovation functions. In 2017, BIC invested approximately 1.8% of sales revenue in new product research and development; new products and line extensions accounted for 11% of BIC Group sales. The research, development and innovation functions are organized by category. Each category manages its own factories, its own R&D and its own marketing teams, which are also responsible for innovation. In Stationery, BIC continuously innovates to bring state-of-the-art ● writing technology to its consumers and it launches an average of 20 new products every year. The Stationery R&D Department is organized around two activities: design, which focuses on the mechanical properties of products, and Ink Systems, which focus on ink improvements. BIC is the only player in the stationery industry that develops and produces all of its product components in-house, right down to the molds and machines used in production. This gives us complete control over product quality and reliability as we strive to maximize customer satisfaction. Over the last five years, BIC has launched many innovations in the market such as: BIC Kids learning range: a full range of pens and pencils for • Beginners, designed with psycho-motricians to facilitate proper handwriting learning;

21

BIC GROUP - 2017 REGISTRATION DOCUMENT