2021 Universal Registration Document

RISKS MANAGEMENT

Description and mitigation of main risk factors

Risks related to BIC’s Net Sales Regional Concentration BIC revenue streams rely upon a significant concentration in a few key regions, such as the United States and Latin America. Level of risk impact: medium Potential impact on BIC: Examples of Risk Mitigation: a high concentration in revenue generation exposes the Company to the • risk of shifting consumer demand and regulatory action in a few geographies.

continued focus on sales growth in Developing Markets; • deployment of a portfolio approach. •

Risk related to M&A execution in the context of BIC’s Horizon strategic plan BIC’s Horizon strategic roadmap includes targeted acquisitions to strengthen BIC’s existing activities and develop into adjacent businesses. Level of risk impact: medium Potential impact on BIC: Examples of Risk Mitigation: execution of the transaction, including valuation and due diligence • of the targeted businesses; integration planning and execution of the acquired companies, including • failure to capture synergies. a dedicated centrally led M&A team is in-place with professionals with • extensive M&A backgrounds; a clear operating model has been established with strong governance • and clear accountabilities; a disciplined process supports due diligence and execution to identify • and assess value creation; a strong planning process governs integration, focusing on delivering • the synergies identified during the due diligence.

Risks related to Product Safety The risk related to product safety and consumer health and safety is placing non-compliant or unsafe products on the market. Level of risk impact: medium Potential impact on BIC: Examples of Risk Mitigation: impact on Consumers Health and Safety; • impact on the Brand image (Consumers), BIC’s reputation, and business • interests; potential costs associated with market withdrawal or recall and/or fines • as the case may be.

the Product Safety Policy includes commitments to ensure that products • designed and manufactured by the Group are safe for health and the environment; with the primary objective of bringing safe and compliant products to the • market, BIC integrates regulatory compliance and product safety risk management into its strategy through a rigorous set of processes. BIC supplies millions of constant quality products every day, verified by multiple tests and risk assessments; consumers’ health and safety concerns are integrated into product • design and manufacturing. In 2017 and 2018, the regulatory watch was extended to non-regulatory voluntary lists to ensure maximum anticipation. In 2019, the BICWatch List became more operational for teams and more precise with respect to customers’ concerns related to our products. More information is available in § 3.2.4 Product Safety .

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• BIC GROUP - 2021 UNIVERSAL REGISTRATION DOCUMENT •

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