2021 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

1-4

Subsequent events

BIC has announced on February 1st, 2022 that is has completed the acquisition of Inkbox Ink Incorporated for 65 million USD (57 million euros), and a deferred consideration based on Inkbox’s future sales and profitability growth. This investment was fully consolidated in the financial statements as of February 1, 2022. This acquisition has been treated as a business combination. A preliminary goodwill amounting 77.8 million USD (69 million euros as of February 1,2022) has been determined based on the fair value of net assets of Inbox at the acquisition date. This amount is provisional as of February 1,2022. The preliminary goodwill was allocated to the assets as follows:

the Inbox trademark amounting 24.2 million USD, i.e. 21.5 million euros as of February 1,2022; ● the patent and the software amounting 13.4 million USD, i.e. 11.9 million euros as of February 1,2022; ● a non-compete agreement amonting 1.1 million USD, i.e. 0.9 million euros as of February 1,2022; ● the related deferred tax liability amounting 3.9 million USD, i.e. 3.5 million euros as of February 1,2022. ● The preliminary goodwill amounts thus 43.1 million USD, i.e. 38.3 million euros as of February 1,2022.

NOTE 2

OPERATING SEGMENTS

Accounting policies IFRS 15 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This core principle is presented in a five-step model: identify the contract(s) with a customer; 1) identify the performance obligations in the contract; 2) determine the transaction price; 3) allocate the transaction price to the performance obligations in the contract; 4) recognize revenue when (or as) the entity satisfies a performance obligation. 5) The impact on the consolidated financial statements is limited and concerns certain contractual clauses in the sales agreements. The main impact is related to business development funds that consist of general brand promotions or advertising services (that the Group could have also acquired from a third-party advertising supplier) and is accounted for as an operating expense instead of net sales.

General information 2-1 According to IFRS 8, the Group operating segments have been determined based on the reports regularly provided to the management and used to make strategic decisions. The measurement policies that the Group uses for segmental reporting under IFRS 8 are the same as those used in its financial statements. The management, composed of operational representatives responsible for the continents, representatives of the categories and cross-functional areas, considers the business from a product category perspective, knowing that each category can be reviewed for a specific geographic area if necessary. These operating segments receive their revenues from the production and distribution of each product category. Following the new organization announced at the time of BIC’s transformation plan launched in February 2019, a new financial information structure was put in place starting in 2020.

The unallocated costs have been excluded from Categories’ Income From Operations and Normalized Income From Operations, and will be presented separately: stationery; ● lighters; ● shavers; ● other products; ● unallocated costs. ● Unallocated costs include the following: net costs (balance of income and expenses), ● corporate headquarters costs including information • technology, finance, legal and HR costs, shared services center costs; • other net costs that can’t be allocated to Categories, notably ● restructuring costs, gains or losses on assets’ divestiture, etc.

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• BIC GROUP - 2021 UNIVERSAL REGISTRATION DOCUMENT •