BIC_REGISTRATION_DOCUMENT_2017

GROUP PRESENTATION Risk factors

In particular, certain Group factories are subject to the EU SEVESO Directive, which identifies industrial sites that could pose major accident risks and requires the manufacturers to carry out risk studies in order to identify possible accident scenarios, evaluate their potential consequences and implement preventive measures. The SEVESO plants have emergency procedure protocols (Plan d’Opération Interne and Plan Particulier d’Intervention) and a major hazard prevention policy. For the two SEVESO plants, the BIC Group has also implemented a safety management system. Outside France, some plants have equivalent emergency plans that address risks with potential off-site consequences. Risks related to the Environment The nature of our manufacturing operations, primarily molding and the assembly of plastic products and printing of products, has a relatively low local environmental impact compared to other manufacturing sectors. Nevertheless, in keeping with the Group’s EH&S policy, our Sustainable Development Program requires all BIC plants to measure, assess and reduce any potentially significant environmental impacts. BIC has also implemented health, safety and environmental risk management systems at all its factories (excluding Cello Pens) in order to ensure the integration of measures to prevent pollution and other risks in its everyday operations, as well as the ongoing improvement of its installations, equipment and procedures for the purpose of risk prevention. Detailed information on the management systems and specific measures for controlling the environmental consequences of the Group’s operations can be found in Chapter 2, sections 2.3.1.1 “Management systems” page 64 and 2.3.1.5 “Reducing other forms of environmental impact” page 68. A breakdown of the plants’ water and energy consumption, greenhouse gas emissions and waste production is given in Chapter 2, section 2.3 “Environmental responsibility concerning our operations”, along with the actions undertaken by the Group and its sites to control and reduce their environmental impact. The European REACH regulation (Registration, Evaluation, Authorization and restriction of CHemicals) establishes a regulatory framework for chemical substances and places responsibility on manufacturers to demonstrate the safety of the chemicals they use. BIC has set up a specific organization process to facilitate and ensure compliance with this regulation, described in detail in chapter 2, section 2.2.3 “Product safety” page 60. Regarding Cello Pens factories, the Group focuses primarily on health and safety issues as long as the management of the major environmental risks. BIC has not set aside substantial provisions for dealing with the consequences of environmental risks. Should such damages be incurred, the Group considers that the cost of reparations would not significantly affect its financial position. Risks related to Climate Change Risks related to Climate Change are reviewed each year. The major risks are: increasing regulation on carbon or energy directly or indirectly ● impacting our operations or those of our suppliers and contract manufacturers;

disruption or interruption of production activities due to extreme ● weather conditions or availability of natural resources (water, energy, etc.) directly impacting our factories or those of our suppliers and contract manufacturers; development of new regulations and standards regarding product ● environmental impact assessment and communication (including the carbon impact) as well as consumer behavior changes impacting the Group sales. To limit the financial consequences of these risks and transform some of them into long-term opportunities, since 2003 the Group has a Sustainable Development Program, as well as an Environment, Health & Safety (EHS) Policy. In 2017, the Group decided to go one step further and increase its efforts by defining ambitious commitments. Among the 5 commitments of “Writing the future, Together” , two contribute more directly to addressing the issue of Climate Change. By 2025, BIC will use 80% renewable electricity. With this ● commitment, the Group is seeking to reduce its greenhouse gas emissions by purchasing renewable energies and will also study the potential production of renewable electricities on-site. It is part of a long-term vision to operate on 100% renewable electricity. It supplements the Group's continued efforts on energy consumption reduction and energy efficiency to limit its emissions. In 2017, the Group has renewable energy certificates (GoO or REC) to cover 23% of its electricity consumption and 45% of its indirect greenhouse gases (scope 2). In addition, the Group has launched or finalized 28 projects directly related to the reduction of energy consumption. Globally, between 2006 and 2017, direct and indirect CO2 emissions per ton of production have decreased by 11%. By 2025, the environmental and/or societal footprint of BIC® ● products will be improved. The goal is to deploy a comprehensive eco-design process within each of our categories. In the framework of its eco-design approach, the Group aims at limiting the environmental impacts of its products (including the carbon impact) by minimizing the use of non-renewable raw materials through for example minimizing the quantity of materials used, the use of alternative materials or the development of refillable products. The Group Sustainable Development Program is presented in chapter 2: “Our environmental, social and societal responsibility” page 39. Risks related to Group acquisitions Part of the Group’s strategy is to grow through acquisitions. An acquisition may allow for geographical expansion or reinforcement of existing categories. Business integration of an acquired company is one of the key elements of success. Following an acquisition, the Group deploys a highly qualified management team to monitor the progress of the integration on a regular basis. In addition to monitoring the integration plans, the team reviews the alignment of systems, processes and procedures with the Group's standards. Strategic and operational risks

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BIC GROUP - 2017 REGISTRATION DOCUMENT

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