Bic : Investor Insights newsletter - Flame for Life - January 2022

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Investor Insights

BIC Investor Relations Newsletter

Deep Dive in BIC's

Horizon Plan: Flame For

Life

In November 2020, BIC unveiled Horizon, a multi-year strategic plan designed to drive sustainable growth and maintain robust cash flow by reframing its historical core categories through a consumer lens. With Horizon, Human Expression goes beyond Stationery into Creative Expression and Digital Writing, Flame for Life expands the Lighter category to all lighting occasions and moves to a value- driven business model, and Blade Excellence reinforces the Shaver category through consumer-driven and sustainable products while leveraging our capabilities to transform into a high-precision blade manufacturer for other Brands.

In this issue of BIC "Investor Insights", we answer your most frequent questions on BIC's Flame for Life division and demonstrate how our strategy will drive sustainable growth and contribute to protecting the Lighter division's operating margins going forward.

In this issue:

How BIC is focusing on all flame usages and value-driven sustainable innovation, to drive growth and maintain the profitability of its Lighter business

CONTACTS

Sophie Palliez-Capian

VP, Corporate Stakeholder Engagement [phone] [phone] [e-mail]èle Ventura

Senior Manager, Investor Relations

• 33 1 45 19 52 98 [e-mail]

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Executive Summary

FREQUENTLY ASKED

QUESTIONS

Page 3	"	TO WHAT EXTENT ARE
	THE GLOBAL LIGHTER
	MARKET AND BIC
	LIGHTERS' SALES
	LINKED TO CIGARETTE
	CONSUMPTION?
Page 4	"	TO WHAT EXTENT
	ARE FLAME USAGES
	NOT RELATED TO
	SMOKING?
Page 6	"	WOULD YOU AGREE
	THAT NON-SMOKING-
	RELATED FLAME
	USAGES ARE DECLINING
	AND MEANT TO
	DISAPPEAR DUE TO THE
	DEVELOPMENT OF
	ELECTRIC DEVICES?
Page 8	"	IS BIC LIGHTERS'

VOLUME-DRIVEN

BUSINESS MODEL

ADAPTED TO CURRENT

MARKET TRENDS?

Page 11

"

AREN'T BIC

DISPOSABLE PLASTIC

LIGHTERS HARMFUL TO

THE ENVIRONMENT ?

FACTS

THE GLOBAL LIGHTER MARKET AND BIC LIGHTERS' NET SALES ARE NOT ONLY LINKED TO CIGARETTE CONSUMPTION

A FLAME IS AN ESSENTIAL ITEM, ITS USAGES ARE NOT LIMITED TO SMOKING

NON-SMOKING-

RELATED FLAME

USAGES ARE

GROWING

BIC IS EVOLVING ITS STRATEGY TO ADAPT TO CURRENT AND FUTURE MARKET TRENDS

BIC PIONEERS THE LIGHTER INDUSTRY SUSTAINABILITY TO BUILD LONG-TERM COMPETITIVE ADVANTAGE

PROOF POINTS

Between 2010 and 2020, the worldwide cigarette consumption declined by 1.2% annually, while the Pocket Lighter market grew 2.0% in volume. Similar trends are expected between 2021 and 2025.

BIC Lighters' Net Sales have increased by 4.5% per year on average since 2010.

2/3 of Flame usage are non-smoking related globally

90% in Developing Countries

77% in Developed Countries

The Global Candle market is expected to grow more than 8% between 2021 and 2028.

Barbecues using charcoal - which require a flame to function - are expected to grow approximately 4% annually until 2025.

More than 2/3 of both developed and developing countries households are equipped with a stove, of which more than 1/3 are gas stoves.

By 2025, approximately 50% of BIC Lighters Net Sales will come from added-value products. Added-value Pocket Lighters' Gross Profit margin is 9 points higher than Total Pocket Lighters'

Launched 18 months ago, BIC EZ Reach already accounts for almost 5% of total Lighters Net Sales.

2/3 of the BIC Lighter range is expected to evolve within the next 5 years to improve environmental performance.

100% of BIC pocket lighter bodies will be made of bio-attributed POM by 2030.

Per flame, matches use 70% more plastic than BIC Maxi Lighters.

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01 Lighters and BIC Lighters' Sales are not only linked to cigarette consumption

From 2010 to 2020, wworldwide cigarette consumption declined by 1.2% annually (CAGR), while the pocket lighter market grew 2.0% in volume (CAGR).

Trends are expected to be similar from 2021 to 2025, with Lighters growing 2.2% and cigarettes declining -1.1%over the period.

During the same period, BIC Lighter volumes increased 2.3% per year on average, and Net Sales grew 4.5%.

Source: Cigarette Sales: Euromonitor from trade sources/national statistics - Pocket Lighter Sales:

QY Research - Global Disposable Lighters Market Report, History and Forecast 2010-2025

The overall Lighter market growth is fueled by the increase of the worldwide population,

consumers shifting from matches to lighters, and non-smoking-related flame usages.

BIC Lighters' sales outperform the overall market thanks to a unique selling proposition combining safety, quality, which enabled distribution and market share gains.

FOCUS ON THE EVOLUTION OF CONSUMERS HABITS: FROM MATCHES TO LIGHTERS

One of the drivers of the lighters' market growth is the evolution of consumer habits, which is fueled by increasing purchasing power. Pocket and Utility Lighters account for more than 60% of the Flame devices market. They are expected to grow 2.1% in volume on average between 2021 and 2025, while the volume of matches should decline by -3.6% over the same period.

Source: Q.Y. Research - Global Market Reports for Matches, Utilities and Disposable Pocket lighters - 2019	3

02 A Flame is an essential item, used by everyone,

everywhere

A lighter device aims to produce a flame, an essential item used by everyone, everywhere, smokers and non-smokers. Extensive studies on the prevention of risks, notably those related to domestic hazards such as fires or floods, have been conducted by risk experts and insurance companies to deepen their knowledge of the different household flame usages.

These studies confirm that Flame usages are not only related to tobacco and cigarette consumption:

In Developing countries, non-tobacco usages include primary needs such as lighting (candles, gas- filled lamps), cooking (gas stoves), and heating.

In Developed countries, usages are linked to indoor comfort and outdoor leisure, and flames are needed to light candles or barbecues.

The Flame For Life strategy aims to leverage all non-tobacco usages to fuel long-term growth. This will be notably done through innovative and adapted new products, such as the BIC EZ Reach.

Total Flame Devices - Flame sizing - Ipsos Study for Calyxis - October 2021

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Focus on Flame usages in the U.S. and Brazil

Ipsos' study on flame occasions in the U.S. and Brazil demonstrate that a significant part of flame usage is not related to tobacco.

Source: Ipsos study for Calyxis - USA and Brazil - 2021

*Others include items such as: mosquito coil, chimney, camp fire, kitchen blow torch, gardening activities, etc.

Each of these items represent less than 2%

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