2021 Universal Registration Document

RISKS MANAGEMENT

Description and mitigation of main risk factors

Risks related to Consumer Demand and Growth BIC is vulnerable to changes in consumer appetite trends for its products based upon consumer preferences and attitudes towards its products in all three categories – Stationery, Lighters, and Shavers. Global consumer trends can include: rise in Digital Stationery technology, tobacco use cessation,

change in shaving habits. Level of risk impact: high Potential Impact on BIC:

Examples of Risk Mitigation:

a lack of viable responses would impact sales and profitability; • change in Consumer habits impacting BIC’s three categories includes: • shift to e-learning in Stationery, •

focus Research & Development (R&D) on product innovations and • brand positioning to address the decline and change in consumer demand; adopt a Consumer-lens to category expansion; • expand in fast-growing Creative Expression and Digital Writing • markets; focus on sales growth in Developing Markets; • increase total addressable markets. •

decrease in tobacco consumption in Lighters, • decrease in shaving frequency in Shavers. •

Risks related to Retail Disruption and Consolidation BIC ® product sales may be adversely impacted due to the Consolidation of retail customers via e-commerce and the potential decrease in pricing power related to retailers’ demand for lower pricing, increased promotional programs, and direct-to-consumer channels.

Level of risk impact: high Potential Impact on BIC:

Examples of Risk Mitigation:

change in consumers’ purchasing patterns may reduce pricing power • through e-commerce channels and impact BIC sales.

serve consumers wherever they shop, including all channels from • e-commerce to hypermarkets, stationery stores, and small Mom and Pop stores; expand in e-commerce by covering the spectrum from Pure-Play • e-retailers to omniretailers and deploying our Direct To Consumer offer; deploy strong displays in retail stores and strengthen SEARCH efforts • in e-commerce to drive impulse purchases from consumers.

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• BIC GROUP - 2021 UNIVERSAL REGISTRATION DOCUMENT •