2021 Universal Registration Document

GROUP PRESENTATION, OUTLOOK, AND STRATEGY

Strategy and objectives

Embedded in BIC’s Horizon plan are the following strategic and financial targets :

Strategic and Financial Goals

Associated Targets

Growth acceleration

Deliver a mid-single-digit annual Net Sales growth trajectory

Significantly expand total addressable markets in fast-growing • adjacent segments, and evolves BIC’s business model to capture an increasing value share of our markets, with a strong focus on execution and return on investments; Leverage innovation capabilities and manufacturing excellence to • generate incremental revenues through new routes-to-market; Capitalize on our brands in our core markets and build on new • lifestyles to grow a comprehensive portfolio of consumer-led brands. Disciplined management of operational investments, with a target of • 1 to 1.2 times CAPEX to Depreciation & Amortization; Strict control of Working Capital (Inventories, Receivables, and • Payables). By 2025: 100% of packaging will be reusable, recyclable, or • compostable; By 2030: We will use 50% non-virgin petroleum plastic in our • products. Investments into operations to sustain and enhance organic growth • with approximately 100 million euros annual CAPEX investments; Targeted acquisitions to strengthen existing activities and develop in • adjacent categories, with an average of 100 million euros invested annually; Objective of ordinary dividend pay-out ratio in the range of 40% to • 50% of Adjusted EPS; Regular share buybacks. •

Cash flow generation

Maintain strong cash flow conversion and achieve at least 200 million euros in annual Free Cash Flow through 2022

Sustainable development

Take our Sustainable Development journey to the next level and transform our approach to plastics through two new commitments

Capital allocation

Fund organic growth and acquisitions in adjacent markets while ensuring sustainable Shareholder Returns

BIC’s Horizon strategic plan lays on BIC 2022 – Invent the Future , a trends, while driving robust cash flow generation and creating value set of transforming initiatives launched in February 2019 to build a for all stakeholders.

resilient organization and address market challenges. Supported by four strategic pillars and operational targets, this plan was aimed at driving long-term profitable growth through new organizational priorities. Its ultimate goal is to respond to fast-changing consumer

In 2021, the Group achieved each of its four operational targets one year ahead of schedule:

Strategic pillar

Goal

End-2022 Operational targets

2021 achievements

Effectiveness

Increase efficiency throughout our global manufacturing operations while maintaining product safety, quality, and affordability Enhance consumer insight capabilities and increase the pace of innovative new product launches; Connect and engage more effectively with consumers to leverage our unique Brands. Tailor and strengthen digital communication infrastructure and embrace new shopping trends such as personalization Sharpen our commercial operations to become a genuine omnichannel specialist, online and offline.

Achieve 50 million euros in annual savings

50 million euros

Innovation

Increase the number of new patent submissions by 20% per year

+21% increase of new patent submissions

Consumer- centric Brands

Engage directly with consumers by allocating over two thirds of total brand support in Digital Media by 2022 (in our top markets)

83% of Brand Support investments allocated to Digital Media

Omnichannel Distribution

Achieve 10% of Net Sales from e-commerce by end-2022

10% of Total Net Sales from e-commerce, including Rocketbook

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• BIC GROUP - 2021 UNIVERSAL REGISTRATION DOCUMENT •

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