2021 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

Salaried Retiree Medical and Life Insurance Plan c)

On July 29, 2020, the Company announced a change to the salaried pension benefit for active team members hired prior to January 1, 2007. The BIC Corporation Salaried Pension Plan Final Average Earnings Formula was frozen on December 31, 2020 and future pension benefits for these team members will be accrued under the BIC Corporation Salaried Pension Plan Cash Balance Formula (same formula used for teammembers who joined BIC after January 1, 2007). The long-term objective of the Plan’s investment policy is to provide sufficient funding to cover expected benefit obligations, while assuming a prudent level of portfolio risk relative to the Plan’s liability. The Plan’s assets are invested in the BIC Corporation Master Trust – with a target asset allocation of 20% equities and 80% fixed income. Local 134L Pension Plan b) For beneficiaries hired before December 4, 2007, benefits under the Plan are based on a participant’s years of service multiplied by a fixed set amount (47.00 U.S. dollars per month for 2020, 47.25 U.S. dollars per month for 2021 and 47.50 U.S. dollars per month for 2022 and 47.75 U.S. dollars per month from January 1, 2022). Employees hired after December 4, 2007 accrue benefits under a Cash Balance Arrangement. These participants receive annual credits equal to 3.00% of pay through November 30, 2012, 3.75% of pay from December 1, 2012 through November 30, 2017, 4.75% of pay beginning on December 1, 2017 and 5% of pay beginning on December 1, 2020, which are accumulated with interest, equal to 30-year Treasury rates, to retirement. These two schemes are subject to American legal minimum funding requirements. The long-term objective of the Plan’s investment policy is to provide sufficient funding to cover expected benefit obligations, while assuming a prudent level of portfolio risk relative to the liability. The Plan’s assets are invested in the BIC Corporation Master Trust – with a target asset allocation of 10% equities, and 90% fixed income.

Employees hired prior to 2007 benefit from medical coverage for their entire retirement if they are at least 55 and have 20 or more years of service at retirement. The Plan is closed to new employees. Effective October 1, 2013, as part of an exchange, certain covered retirees and future retirees, age 65 and over, are granted a fixed payment of 3,500 U.S. dollars annually to purchase retiree medical coverage. This amount was increased to 4,020 on January 1, 2019.This benefit will be reviewed in the future to reflect the upward trends in healthcare costs. Retiree life insurance is available to employees who retire at or after age 55 with 10 or more years of service. Employees hired on or after January 1, 2018 are no longer eligible for this benefit. The death benefit is equal to 100% of final salary with a cap ranging from 10,000 U.S. dollars for non-managerial employees to 100,000 U.S. dollars for BIC Level 4s and above. On July 29, 2020, the Company announced changes to the salaried retirement benefits for active team members who were eligible for retiree medical and retiree life insurance benefits. With limited exceptions, if active team members leave BIC after December 31, 2021, they will no longer be eligible for these benefits. The Plan does not have any assets. Local 134L Retiree Medical and Life Insurance Plan d) Employees who retire at or after age 60 with 10 or more years of service are eligible to receive medical and life insurance coverage throughout their retirement. Retirees prior to December 1, 2002 are granted fixed annual payments ranging from 2,600 U.S. dollars to 3,500 U.S. dollars to purchase retiree medical coverage. Post-age 65 retirees who retire on or after December 1, 2002, receive a fixed annual payment of 900 U.S. dollars to purchase prescription drugs. The amounts will be reviewed in the future to reflect the upward trends in healthcare costs. The Plan is closed to new employees hired after November 30, 2012. For pre-age 65 eligible retirees and spouses, BIC pays 50% and the retiree pays 50% of the premium. Retiree life insurance benefits include a death benefit of 12,500 U.S. dollars for employees who retire on or after December 1, 2019. The Plan does not have any assets.

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• BIC GROUP - 2021 UNIVERSAL REGISTRATION DOCUMENT •