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UNIVERSAL REGISTRATION 2O2O D ocu m e n t

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Page 1: Sans titre-2 - BIC

UNIVERSAL REGISTRATION

2O2O

Document

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TThis label recognizes the most transparent documents and informa onmaterials according to the criteria of the classement annuel de la Transparence((annual Transparency ranking) (h ps://www.grandsprixtransparence.com).

AFR

NFPS

AFR

AFR

NFPS

NFPS

NFPS

NFPS

NFPS

NFPS

AFR

AFR

AFR

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BIC GROUP

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MESSAGE FROM BIC’S CHIEF EXECUTIVE OFFICER

Raison d’Être

Gonzalve Bich

BIC GROUP

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BIC GROUP

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4

6

8

11

14

16

17

18

19

BIC GROUP

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PROFILE®

We bring simplicity and joy to everyday life

OUR VISION

OUR MISSION

OUR VALUES

Sustainability

Responsibility Ingenuity

Teamwork Simplicity

OUR BRANDS

BIC GROUP

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35% of 2020 Net sales

38% of 2020 Net sales

25% of 2020 Net sales

€1,627.9 million

1

€229.1 million

14.1% €93.7 million

€2.08 €274.5 million

€183.9 million €117.6 million

12.96 5.22

t

1.031

11,246 23.7 million BIC®

1 2 3 Dividend paid and share buyback

BIC GROUP

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A GLOBAL PRESENCE

NORTH AMERICA

43% of Net Sales2 Factories

15*

6

4

25 92%

®

Manufacturing footprint

BIC GROUP

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EUROPE

32% of Net Sales9 Factories

DEVELOPING MARKETS

25% of Net Sales14 Factories

BIC GROUP

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OBJECTIVE

2022 TARGET 2020 PERFORMANCE

Achieve 50 million euros in annualized savings

OBJECTIVE

2022 TARGET 2020 PERFORMANCE

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

OBJECTIVE

2022 TARGET 2020 PERFORMANCE

above 2/3rd of total brand support in Digital Media in its top markets

OBJECTIVE

2022 TARGET 2020 PERFORMANCE

Reach 10% of Net Sales in e-commerce

BIC GROUP

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COVID 19 crisis

BIC GROUP

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HORIZON PLAN

Horizon

NVESCRE EDEVELOPPERFORM

HU

MAN

EXPR

ESSIO

N FLAME FO

RLIFE

BLADE EXCELLENCE

CONS

UMER

S’NE

EDSSUSTATT INABILITY

ECONO

MIC

TREN

DS MISSION

INNOVATION GLOBAL SUPPLY CHAIN COMMERCIAL EXCELLENCE

SUSTAINABILITY

PEOPLE

“We create high quality, safe, affordable, essential products trusted by everyone.”

BIC GROUP

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Human Expression

Flame for Life

Blade Excellence

BIC GROUP

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CONSUMER-CENTRIC AND OPEN

INNOVATION

A VALUE DRIVENGLOBAL SUPPLY CHAINL

ENHANCEDCOMMERCIAL EXCELLENCE

CROSS-FUNCTIONAL SUSTAINABILITY

ENGAGED TEAM MEMBERS

We create high quality, safe, affordable, essential products trusted by everyone

Horizon

NVESCRE EDEVELOPPERFORM

HU

MAN

EXPR

ESSIO

N FLAME FO

RLIFE

BLADE EXCELLENCE

CONS

UMER

S’NE

EDSSUSTATT INABILITY

ECONO

MIC

TREN

DS MISSION

Team members:key to our success

State-of-the-art and responsible

Sustainable procurement strategy

®

• 11,246 team members• 24,202 training days• €466M payroll cost

• 92% Net Sales from products manufactureddin BIC factories

• Long-term progress in aallfactories: reducing watter

• €862,2M purchases of raw materials, consumables and services

• 300 strategic suppliers

• more than 80% of products manufactureddin Europe and sold therre

• €1.456,2M Shareholdeers’ equity

• €357.6M of Net Cash

• €183.9M of Net cash

• 346 patents granted att the end of 2020 in totaal

• 1.5% Net Sales investeed in R&D

products subject to eco-measurement

BIC GROUP

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A reduced environmental footprint

®

• 1.63 incident rate of workplace accidents

• 1.4% absenteeism rate• -32% reportable accidents

• -4% greenhouse gasemissions (scopes 1 and 2)*

2019 and 2020

®

ballpen®

lighter• 17 days of shaving with a

BIC®CC Flex 3

• €1,627.9M Net Sales• €93.7M Net Income• €83.1M Capital

Expenditure• €110.2M Ordinary

Dividend paid

• 142 philanthropic projectssupported

• 118M children withimproved learning

• €1.4 M invested in

BIC GROUP

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FOSTERING SUSTAINABLE INNOVATION IN BIC® PRODUCTS

®

® UN SDG1

Main 2020 Achievements

®

1

2025 Commitment

ACTING AGAINST CLIMATE CHANGE

UN SDG1

Main 2020 Achievements • • •

2

COMMITTING TO A SAFE WORK ENVIRONMENT

UN SDG1

Main 2020 Achievements • • • • •

3

2025 Commitment

1

2025 Commitment

BIC GROUP

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PROACTIVELY INVOLVING SUPPLIERS

2025 Commitment

UN SDG1

Main 2020 Achievements

4

IMPROVING LIVES THROUGH EDUCATION

UN SDG1

Main 2020 Achievements

5

2025 Commitment

1

• By 2025, 100% of packaging will be reusable, recyclable, orcompostable,

BIC GROUP

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TEAM MEMBERS

Social

BIC GROUP

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GOVERNANCE

13 Directors

45% Women

45% Independents*

9 members

22% Women

Board of DirectorsMISSIONS:

MISSIONS:

•CEO

NOMINATION, GOVERNANCE

AND CSR COMMITTEE

AUDIT COMMITTEE

REMUNERATIONCOMMITTEE

Shareholding Structure

PUBLIC

%

%

%

BIC GROUP

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Pierre Vareille1 •

2 Gonzalve Bich

Elizabeth Bastoni•

4 Vincent Bedhome

Marie-Aimée Bich-Dufour

Timothée Bich

Maëlys Castella•

Marie-Pauline Chandon-Moët

John Glen

Inna Kostuk

Société MBD

Jake Schwartz •

1

2 4

BIC GROUP

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EXECUTIVE COMMITTEE

Gonzalve Bich

2

François Clément-Grandcourt

4 Peter Dalsberg

Sara LaPorta Charles Morgan

Chad Spooner

Chester Twigg

2 4

BIC GROUP

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1 2 3

IDENTIFICATION AND

BOARD OFDIRECTORS

BUSINESSUNITS &

SUBSIDIARIES

RISK MATRIX

RISK MAPPING

ACTION PLAN RISK MONITORING

BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

MANAGEMENTBUSINESSUNITS &

SUBSIDIARIES

APPROACHAPPROACH

RISK MANAGEMENT

FUNCTION

BIC GROUP

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CREATING SUSTAINABLE VALUE

1

1 1

1

15 45

84 74

15 61

1

BIC GROUP

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SHARING VALUE

GOVERNMENTS

€65.2MCOMMUNITIES

€1.4MSHAREHOLDERS

€110.2M

€7.4M

BANKS

€+1.4MSUPPLIERS

€862.2M

INVESTMENTS

DISTRIBUTION TO STAKEHOLDERS1

CAPITAL EXPENDITURE

€83.1MEMPLOYEES2

€465.5M

Invest to ensure a sustainable growth

2020 NET SALES

€1,627.9M

1

BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

20202019

1,949.4

1,627.9

2%Other Products

35%Stationery

38%Lighters

25%Shavers

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BIC GROUP

20202019

252.7

156.8

20202019

331.8

229.1

20202019

9.6%

20202019

14.1%

20202019

176.1

93.7

20202019

3.91

2.08

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BIC GROUP

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BIC GROUP

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BIC GROUP

20202019

76%80%

20202019

1.87

1.63

20202019

3.1

20202019

83% 80%

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

31%Writing Instruments

4%Digital Writing

7%Skin Creative(includingtemporary tattoos)

58%Arts & Crafts

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BIC GROUP

19%Europe

20%North America

11%Latin America

22%Asia

16%China

8%Others

4%India

23%Ball Pens

15%Roller & Gel

13%Coloring

17%Marking

33%Others

9%Newell

9%BIC

6%Pilot

4%M & G

4%Faber-Castell

69%Others

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BIC GROUP

Ball PenMechanicalPencils

ColoringMarker/Highlighters

Correction

8.3%

4.7% 4.0%

12.1%

18.6%

Lucky PenStationeryin Nigeria

TemporaryTattoo

Markers

Writinginstruments

in India

ReusableDigital

Notebooks

Correction products

erasers) sold under the BIC®

Wite-Out® and Tipp-Ex®

trademarks

Added Value Coloring

coloring pencils)

Coloringand drawing

& craft kits)

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BIC GROUP

6%Others 8%

Latin America

17%North America

25%Europe

44%Asia

62%Flint

38%Electronic

1%Tokai

57%BIC

3%Swedish Match6%

Flam agas

32%Asian Player

48%Tobacco

3%Others

25%Candle & incense

10%BBQ

7%Emergency Prep

7%Logs

27%Tobacco

17%Candle & incense

4%BBQ

9%Others

36%Gas Stove

5%Gas Oven

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BIC GROUP

Latin AmericaNorth America(measured and unmeasured

market)

EuropeWorld

55%

35%

70% 70%

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BIC GROUP

74%Non decorated

26%Decorated

64%Non decorated

36%Decorated

90%Pocket Lighter

10%Utility Lighter

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BIC GROUP

8%Eastern Europe

24%Western Europe

27%North America

17%Latin America

24%Others

39%One Piece

3%Double Edge

58%

58%Procter & Gamble

13%Edgewell

7%BIC

5%Private Label

2%Unilever

16%Others

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BIC GROUP

MexicoBrazilUSAUKFrance

22.7%

14.3%

29.1%

23.0%

12.6%

Us, a unisex grooming linelaunched in 2020 and available in-store.

This grooming line includesrazors shave cream, body lotion,and face lotion, offering the full

regimen for a great valuehigh-quality head-to-toe

grooming experience.

Made for YOU brandlaunched in 2019,

offering gender-neutral

exclusively onlineon Amazon.

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BIC GROUP

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BIC GROUP

Nigeria

SouthAfrica

Somalia

Brazil

Mexico

USA

India(Cello)

TunisiaTT

France

GreceSpain

China

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

• Consumer Demand and categories’ growth

• Plastic and climate change

• Retail Disruption and Consolidation

• Supply Chain and Production

• Net Sales Regional Concentration

• Execution of BIC’s transformationprogram “BIC 2022 – Invent

• M&A execution in the context

• Product Safety

• Counterfeiting, parallel imports,and non-compliant products

• Increased Regulations

• Risks related to IT security

Risk

Impa

ct

High

HighLowLikehood

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

20172014 - 2016 2011 - 20132008 - 2010200520042003 2018 - 2025 2020 - 2030

Launch of the BIC Sustainable

Development Program,

with all functions, categories

and continents involved in its

implementation

Publication of the 1st BIC

Sustainable Development

report

1st consultation with the

Stakeholders Panel

Launch of the 1st BIC

Sustainable Development

Barometer

Progress made toward

reaching goals: from 58% to

79%

2nd BIC Sustainable

Development Barometer

Progress from 0 to 8.6/10

3rd BIC Sustainable

Development Barometer

Progress from0 to 9/10

of the ambition for 2025,

with goals and action

plans

Launch of the WRITING THE

FUTURE,TOGETHER

BIC’s newcommitments to the circular

economy

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BIC GROUP

#1

#2

#3

#4

#5

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

#1 Fostering sustainable

in BIC® products

#2against climate change

#3to a safe work environment

#4involving suppliers

#5 Improving lives through

of BIC® products will be improved.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

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BIC GROUP

SDG 1.

SDG 3.

SDG 4.

SDG 5.

SDG 6.

SDG 7.

SDG 9.

SDG 10.

SDG 13.

SDG 14.

SDG 15.

SDG 16.

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BIC GROUP

FUNCTIONS• Integrate sustainable development in certain projects

• Contribute to the reporting of

EXECUTIVE COMMITTEE

Development Program

NOMINATIONS, GOVERNANCE AND CSR COMMITTEE

• To review the report on social, societal and environmental responsibility, the actions taken by the Group and its policy

• To review the progress made against the strategy and commitments taken

CHAMPIONS• Propose and supervise the action plans

SUSTAINABLE DEVELOPMENT MANAGEMENT• Develops proposals and action plans•

and other targets• Carries out surveys and exploratory projects• Manages regulatory monitoring

• Ensure communication and engagement with the various stakeholders

BOARD OF DIRECTORS

Decisions Proposals

Leadership and Coordination Proposals

Contributionto the

program

Contributionto the

program

COUNTRIES• Development Program locally: - to meet the needs of customers and other stakeholders - taking local cultures and regulations into account• Contribute to the reporting

CORPORATE STAKEHOLDERENGAGEMENT

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BIC GROUP

37.8%Plastics

2.6%Other (excluding OEM)

34.8%Packaging

16.3%Metals

8.5%Chemicals

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BIC GROUP

BIC® Cristal® ball pen 81% 12% 4% 3%

BIC® Maxi lighter 81% 11% 5% 3%

BIC® Classic single-blade shaver 79% 14% 4% 3%

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BIC GROUP

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BIC GROUP

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BIC GROUP

202020192018

NA

3%

4.3%

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

1.

2.

3.

4.

5.

6.

7.

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

665 %%

Made in France

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BIC GROUP

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BIC GROUP

Others

End-od-life of products sold

Fixing ofassets

Upstream anddownstream transport

Purchase of products and services

Use of BIC®

products

Electricalconsumption (scope 2)

On-site fuel oilconsumption (scope 1)

7,659(1%)

70,435(9%)

300,000(38%)

236,000(30%)

43,000(5%)

38,000(5%)

49,000(6%)

41,000(5%)

Direct emissions(scope 1 & 2)

Total em

ission

s 78

5,0

00

teqC

O2

Indirect emissions(scope 3)

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BIC GROUP

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BIC GROUP

6%

24% 23%

68%

76%80%

202020192018201720162015

12.14 12.59 12.96

202020192018

>1% <1% <1%15%15%15%

15 %

84%

ElectricityGasFuel oil

85% 85%

202020192018

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BIC GROUP

202020192018

316,000347,000

231,900

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BIC GROUP

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BIC GROUP

202020192018

0.291

0.246

61%Sea

0.84%Air

38%Land

24%Sea

27%Land

49%Air

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BIC GROUP

202020192018

5.324.87

5.21 ●

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BIC GROUP

202020192018

0.037

0.174

0.039

0.181

0.033

0.197

Non-hazardous waste

Hazardous waste

4%8%2%14%

73%

1%10 %2%13%

74%

2%9%2%12%

74%

RecycledIncinerated with energy recoveryIncinerated without energy recovery(1)

Sent to land disposalSent to other form of treatment disposal

202020192018

12%

8%

25%

39%

16%

21%

5%

21%

32%

21%

29%

5%

26%

27%

13%

RecycledIncinerated with energy recoveryIncinerated without energy recovery(1)

Sent to land disposalSent to other form of treatment disposal

202020192018

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

202020192018

74

50

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BIC GROUP

202020192018

6155

62

202020192018

1.872.09 2.14

1.851.63

BIC workforceBIC workforce and non-permanent staff

202020192018

0.08

0.06

0.07

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BIC GROUP

202020192018

0.8%0.9%

1.4%

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BIC GROUP

a Dealing withAmbiguity

LEADERS

Managing remotely@ BIC

Managing OrganizationalTransition Message

PEOPLE MANAGERS

Working from HomeManaging Individual

TransitionVirtual CollaborationREAM MEMBERS

202020192018

19,511

16,629

24,202

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

202020192018

148

174

137

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

2%Not free countries

85%Free countries

13%Partly free countries

8,5%Partly free countries

58,5%Not Free countries

33%Free countries

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BIC GROUP

1.

2.

3.

4.

5.

6.

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

14%Health and emergency aid

53%Education

33%Other

(environment,sport, etc.)

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BIC GROUP

27 %Health and emergency aid

45%Education

28%Other

(environment,sport, etc.)

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

Others

End-od-life of products sold

Fixing ofassets

Upstream anddownstream transport

Purchase of products and services

Use of BIC®

products

Electricalconsumption (scope 2)

On-site fuel oilconsumption (scope 1)

7,659(1%)

70,435(9%)

300,000(38%)

236,000(30%)

43,000(5%)

38,000(5%)

49,000(6%)

41,000(5%)

Direct emissions(scope 1 & 2)

Total em

ission

s 78

5,0

00

teqC

O2

Indirect emissions(scope 3)

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BIC GROUP

202020192018201720162015

6%

24% 23%

76%

68%

80%

61%Sea

0.84%Air

38%Land

>1% <1% <1%15%15%15%

15 %

84%

ElectricityGasFuel oil

84% 85%

202020192018

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BIC GROUP

24%Sea

27%Land

49%Air

347,000

316,000

232,000

202020192018

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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BIC GROUP

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25.6.2 Supplementary pension schemes

  Supplementary pension schemes must be subject to the condition that

the beneficiary must be a Director or employee of the Company when

claiming his or her pension rights pursuant to the applicable rules.

James DiPietro, Executive Vice-President of SOCIÉTÉ BIC and CFO of BIC

International, a U.S. company, withdrew from his duty as Corporate

Officer on 30-Jun-2020 and since that date is acting as a Senior Adviser

to the Chief Executive Officer. He is entitled to a pension with defined

benefit established by BIC Corporation, even while no longer being a

Corporate Officer of SOCIÉTÉ BIC and BIC International when exercising

his pens ion rights. This pension scheme is not governed by

Article L. 137-11 of the French Social Security Code. All U.S. senior

managers who are members of the Group Executive Committee

promoted before 2011, benefited and continue to benefit from this

pension plan established by BIC Corporation more than 30 years ago.

James DiPietro, in the Group for over 22 years, has been eligible for this

pension for more than 17 years, therefore well before his appointment

as Executive Vice-President. This pension plan has not been modified

since this appointment.

Gonzalve Bich, Chief Executive Officer of SOCIÉTÉ BIC and President –

Chief Operating Officer of BIC International, a U.S. company, could be

entitled to a pension with defined benefit established by BIC

Corporation, if he does not resign before the age of 52, even though he

would no longer be a Corporate Officer of SOCIÉTÉ BIC and BIC

International when exercising his pension rights. This pension scheme

is not governed by Article L. 137-11 of the French Social Security Code.

All U.S. employees hired before 2007 benefited and continue to benefit

from this pension plan. Gonzalve Bich, in the Group for almost 18 years,

has been eligible to this pension since then, therefore well before his

appointment as Chief Executive Officer.

  The supplementary pension scheme may not give right to more than

45% of the reference income (fixed and variable annual remuneration

due in respect of the reference period).

The pension plans of James DiPietro and Gonzalve Bich are not

governed by Article L. 137-11 of the French Social Security Code. The

structure of Pension entitlements in the United States of America where

both the Chief Executive Officer and the Executive Vice-President have

their personal interests and have conducted their career and where

their contractual relationship with the Group is set, cannot compare to

the ones in France. Therefore, the limitation of the maximum right to

45% of the reference income cannot apply.

James DiPietro has already accrued a pension benefit equivalent to

52.34% of the average remuneration of the last three years of service.

This rate is the maximum entitlement offered by the Plan rules.

If he does not resign before the age of 52, Gonzalve Bich will have

accrued a pension benefit equivalent to 26.17% of the average

remuneration of the last three years of service.

All details regarding these Pension plans are disclosed on

Chapter 4.2.2.6 Pension plans

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Payout

Below minimumthreshold

0%

At minimumthreshold

0%

At target

100%

At maximumexpected level

150%

Above maximumexpected level

150%

0%

20%

40%

60%

80%

160%

100%

120%

140%

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Bonus PayoutPerformance achievement

75%

0%0

80%

60%

85%

70%

90%

80%

95%90%

100% 100%105%

100%

110%

100%

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3003 %%Persoonala OObjecttiveess

25%Group Net sales

25%Normalized incomefrom operations

200%%GGrouup Woorkkinng

CCappittal

556%TTargetBBonus

44%Fixed Income

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3003 %%Persoonala OObjecttiveess

25%Group Netsales

25%Normalized incomefrom operations

200%%GGrouup Woorkkinng

CCappittal

443%TTargetBBonus

57%Fixed Income

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a)

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● ●

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11Other Products

37Stationery

34Lighters

23Shavers

2019Total: 105

9Other Products 17

Stationery

37Lighters

2020Total: 83

20Shavers

8Other Products

219Stationery

126Lighters

103Shavers

2019Total: 456

6Other Products

182Stationery

114Lighters

77Shavers

2020Total: 379

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165France

394Europe excludingFrance

626Developing

Markets

764North America

2019Total: 1,949

159France

359Europe excludingFrance

230Latin America

87Middle East and Africa

90Asia and Ocenia(including Cello)

703North America

2020Total: 1,628

297France

200Europe excludingFrance

277Developing

Markets

225North America

2019Total: 999

322France

187Europe excluding France

2020Total: 948

195Developing

Markets

243North America

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21,049France

(5,987)Deferred tax

60,287Foreign

2019

Income tax expenseTotal: 75,350

20,268France

2,697Deferred tax

38,646Foreign

2020

Income tax expenseTotal: 61,611

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a)

b)

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22.7%Europe

3.4%United Kingdom

4.4%Other countries

69.5%North America

2019

28.1%Europe

5.2%United Kingdom

5%Other countries

61.7%North America

2020

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INVESTORS RELATIONS14, RUE JEANNE D’ASNIÈRES

92611 CLICHY CEDEX – FranceTEL : 33 (0) 1 45 19 52 00

EMAIL : [email protected] COMPANY CAPITAL EUROS 173,412,173.74DIVIDED INTO 45,395,857 SHARES OF EUROS 3.82

QUOTED ON EUROLIST EURONEXT PARISISIN: FR0000120966

MNEMONIC: BB CONTINUOUS QUOTATION552.008.443 REGISTERED IN NANTERRE France

Cover illustra on ©Integrated Report extract: Consul ng and realiza on

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SOCIÉTÉ BIC92611 CLICHY CEDEX (FRANCE)

www.bic.com