• ●1944

• ●1950

• ●1953

• ●1954

• ●1956

• ●1957

• ●1958

• ●1969

• ●1972

• ●1973

• ●1975

• ●1981

• ●1992

• ●1994

• ●1997

• ●2004

• ●2006

• ●2007

• ●2008

• ●2009

• ●2010

• ●2011

• ●2012

• ●2013

• ●2014

• ●2015

• ●2016

• ●2017

• ●2018

• ●2019

• ●2020

• ●2021

• ●2022

• ●2023

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For over 75 years, BIC® has met consumer needs and desires with high quality, simple, and affordable products and has become one of the most recognized global consumer goods brands, with products sold in more than 160 countries. Our vision is to bring simplicity and joy to everyday life, as we seek to create a sense of ease and delight in the millions of moments that make up the human experience.

Over time, the Group faced rapidly-changing industries and consumption trends affecting its three categories, as consumers habits and their interaction with brands continuously evolved. BIC’s mission to offer high quality products to consumers everywhere and meet their fast-changing needs, drove the Group's transformation from a manufacturing and distribution-led company into a consumer-centric one.

BIC’s Horizon strategy was launched in November 2020 to spur an in-depth transformation of BIC’s business and create the innovative products and services of tomorrow with more focus on consumer needs and sustainability. The goal was not only to amplify our core capabilities, but to go beyond them into higher-growth adjacent segments to ensure long-term sustainable growth and profitability. Horizon is embedded in the Group’s everyday operations and strategic goals.

As part of this transformation, BIC reframed its three core categories through a heightened consumer lens to tap into a stronger growth trajectory:

• ●in Stationery, BIC evolved its focus to “Human Expression”, responding to shifting consumer habits and expanding into the faster-growing Creative and Digital Expression markets;
• ●in Lighters, BIC expanded to “Flame for Life”, focusing on all consumer lighting occasions, including those non-related to tobacco, and driving towards a more balanced model between volume and value. Flame for Life is intended to drive incremental growth and maintain profitability, powered by trade-up and personalization, innovation, and a push toward sustainability;
• ●in Shavers, BIC decided to capitalize on its assets, ground-breaking innovation and manufacturing capabilities to leverage its “Blade Excellence” with the objective to maximize these assets by building a selective new business – named BIC Blade-Tech – as a high precision blade manufacturer for other brands.

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

At our Investor Update on September 11, 2023, we outlined how our Horizon Plan has shaped the future of our business and accelerated sustainable, profitable growth since its launch in November 2020. 

Confirming the following Horizon objectives by year-end 2025: 

• ●annual net sales: growth of 5-7% at constant currencies; 
• ●adjusted EBIT margin: approx. 150bps improvement from the 2022 level of 14.0%;
• ●free cash flow: above €220 million in 2024, above €240 million in 2025(2).

During 2023, we made great progress on our 2025 strategic goals:

Deliver more Sustainable Growth 

• ●We reinforced our marketing capabilities and innovative campaigns to drive category growth. In the US, EZ Reach utility pocket lighters reached 5.8% of market share in value, up +0.4 points fueled by strong distribution and in-store visibility in the Modern Mass market. In the Blade Excellence division, our latest shaver innovations Easy Rinse and Soleil Escape both outpaced the market and gained a combined total of 1.8 pts in value share.
• ●Innovation continued to flourish, with 9.5% of sales coming from new products introduced in the last three years, up 0.5 pts versus last year. The number of patents granted, one of our input indicators which reflects our innovation pipeline, remains strong and in line with our Horizon aspirations. 
• ●We continued to focus on expanding our presence both offline and online. eCommerce online sales represented 12.7% of the Group’s net sales in 2023, growing 13% at constant currency driven by the B2B channel in key countries notably US, France and Brazil.
• ●In line with our Revenue Growth Management discipline, our strategic emphasis on crafting a consumer-focused product lineup led to a Net Sales per SKU growth of 21.4% and a 9% reduction of total SKU count, outpacing our objectives. The resulting price and mix benefit successfully outpaced volume and inflation headwinds.

• ●Our B2B business BIC Blade Tech was impacted by clients’ revised business plans. However, in the fourth quarter it secured agreements with three new clients. These partnerships are promising and are expected to bear fruit in 2024. Additionally, we have reached an agreement with our largest customer to test additional product launches in 2024.

Execute Operating Efficiencies

• ●We continued to drive excellence in procurement in 2023. We delivered additional direct and indirect savings mainly driven by plastics and packaging value engineering, as well as electricity hedging in France. This contributed, in part, to our strong gross profit margin improvement of 240 basis points in 2023.
• ●After a strong start in 2022, we intensified our efforts in value engineering, identifying close to €10 million of savings validated to date. 

Capture Cash Every Day 

• ●Free cash flow in 2023 was strong at €248.7 million driven by strong operational performance coupled with an improved working capital control.
• ●Faster cash collection improved our accounts receivables in days (DSO), in addition to better inventory optimization that ensured strong customer services.

BIC is one of the leading players in the stationery, lighter, and shaver markets. Guided by our long-term vision, we provide high-quality, affordable products to consumers everywhere. This consistent focus has helped make BIC® one of the world’s most recognized consumer products goods companies, with products sold in more than 160 countries.

BIC’s Horizon strategic plan launched in November 2020, aimed at driving sustainable growth by reframing our three categories to expand our total addressable markets in fast-growing segments.

In line with its Horizon strategy, BIC’s historical Stationery category evolved towards “Human Expression” to go beyond core Writing Instruments into Creative and Digital Expression. BIC constantly innovates to further strengthen its presence in both existing and adjacent segments.

Human Expression encompasses Writing and Coloring Instruments, Creative Expression which includes Arts and Crafts, Skin Creative and Digital Expression. Human Expression is a mid- single-digit growth market, which should reach c.52 billion euros by 2026 (5).

Since the launch of the BIC® Cristal® pen in 1950, BIC has continuously diversified its Stationery product range through more added-value products and innovative launches and with an increased focus on sustainability, simplicity and joy.

To name a few in the last three years, BIC launched BIC® Break-Resistant, a mechanical pencil with lead that is 75% stronger than the leading U.S. competitor, a BIC® Ecolutions Gel Pen made of 78% ocean-bound plastic, anti-bacterial pen BIC® Clic Stic® PrevaGuard™ a new coloring range called Intensity, its first rechargeable metallic ball pen BIC® Cristal® Re’New™. In 2020, BIC acquired Rocketbook® the leading brand in Reusable Digital Notebooks. In 2022, BIC diversified further its brand portfolio, with the acquisition of Inkbox, the leading brand of high quality semi-permanent tattoos (high-quality 10-14 days decals), and Tattly, a U.S. startup innovating in the field of high-quality temporary decals (2-4 days), which will diversify BIC’s offering in the rapidly growing Skin Creative market. In the Digital Writing segment, BIC acquired AMI (Advanced Magnetic Interaction), a French innovative startup. AMI will strengthen BIC’s R&D capabilities in Digital Expression.

In 2023, BIC’s global product portfolio included writing, marking (classic, permanent and temporary tattoo markers), correction, coloring, drawing instruments, semi-permanent tattoo, and smart reusable notebooks.

BIC’s historical market Writing and Coloring Instruments amounted to 20.3 billion (6) euros in 2022. The Category is expected to grow at around 4.0% CAGR 2022-2026(7) driven by the rising demand from developing countries and innovation which will fuel growth in the Developed countries. Although the market remains highly fragmented, with many local players and family-owned businesses, it is dominated by three players (BIC, Newell Brands and Pilot) with each recording an estimated market share of over 5%. In 2022, BIC attained the #2 global manufacturer position with 8.2% market share, benefiting from good positions in both Developed and Developing Markets.

Over the years, BIC strengthened its presence in Writing and Coloring Instruments’ market through innovative launches enabling market share gains in key countries, whether it be in core writing instruments or in added-value segments. In 2023, BIC notably gained share in the Coloring segment in France, the UK and the US.

(In value – Euromonitor 2022)

Although BIC’s portfolio is currently concentrated in historical core Writing Instruments segments, the Group’s ambition is to shift towards more added-value and adjacent segmentswhich are in growing. In 2023, 23% of Human Expression Net Sales came from the Creative and Digital Expression segments.

The Arts and Crafts market is a large market experiencing mid-single-digit growth (estimated at 10.9 billion euros in 2022) (8). The market is expected to grow by 3% (CAGR 2021 – 2026) thanks to the increasing demand of both kids’ and teens’ market as well as from adults asking for more creativity. Kids’ crafts account for more than 50% of the total. It includes a variety of sub-segments including Finger-painting, Watercolors, Kits, Crafting Accessories, Modeling Clay and Slime .

The Skin Creative market estimated at 7.7 billion euros includes the permanent tattoos and the “Do it Yourself” Skin Creative segments. The fast-growing “Do it Yourself” Skin Creative segment includes temporary tattoo markers, temporary decals, henna tattoos and semi-permanent tattoos. It is expected to exceed 1.3 billion euros in 2035, powered by the increasing desire of young consumers to be more fluid with their appearance and to express themselves using their body as a changeable canvas. Market players are mostly non-branded small companies:

• ●BIC entered the Skin creative market in 2018 through the launch of Bodymark®, an innovative temporary tattoo marker to address consumers’ attitudes shift towards self-expression, individuality and creativity;
• ●the acquisition of Inkbox in 2022 elevates BIC to a leadership position in the Do-It-Yourself Skin Creative industry (high-quality 10-14 days decals) and further enhances the Group’s existing portfolio of recognized consumer products, where different brands address diverse types of consumer groups. With its unique ability to customize, Inkbox further strengthens BIC’s DTC business and reinforces existing digital and social media engagement capabilities;
• ●in August 2022, the Group acquired Tattly, a U.S. startup innovating in the field of small high-quality 2-4 days decals, diversifying BIC’s offering in the rapidly growing Skin Creative market and particularly in the kids’ segment.

The Digital Writing market was estimated at 6.4 billion euros in 2022 (1). As technology is improving and becoming more affordable, this market should grow by 6% CAGR 2021-2026(1) to weigh above 8 billion euros. It encompasses four main sub-segments: reusable notebooks, smart pens, slate tablets, and stylus for tablets:

• ●BIC’s entered into Digital Writing through the acquisition of Rocketbook® in 2020, the leading smart and reusable notebook brand in the U.S.;
• ●in 2022, BIC strengthened its R&D capabilities in Digital Writing with the acquisition of AMI (Advanced Magnetic Interaction), a French company specialized in the augmented interaction technology. AMI has designed the ISKN Repaper digital tablet, which allows users to capture paper writing and drawing in an electronic format;
• ●in 2023, BIC launched new products in its Rocketbook range.

BIC was built on the amazing power of its Brand, which is one of the world’s most popular household names. Over time, other brands have been added to our portfolio, most of them using BIC as an umbrella to drive attractiveness and consumer engagement, including Tipp-ex®, Wite-Out® and, more recently BodyMark® by BIC.

With Horizon, BIC started to migrate to a “house brands” strategy, where each brand has a different meaning for consumers. The acquisitions of Rocketbook and more recently Inkbox and Tattly further strengthens this approach. BIC’s Human Expression division now offers a diversified panorama of brands, where consumers can each see themselves reflected and find their “own” brand favorites.

Echoing its historical strategy “A BIC seen is a BIC sold”, BIC’s mission is to offer products available to consumers every day and everywhere.

BIC products are sold through a comprehensive range of channels worldwide as the Group pursues its objective to be an omnichannel specialist both offline and online. Products can be found in retail mass-market distributors, eCommerce channels (pure players, market places, B2B and B2C omnichannel retailers), traditional stores and Office Product suppliers (through contract or office superstores).

In the retail mass-market channel, Back-to-School season remains a key period. BIC offers consumers a tremendous range of school and college products through numerous displays, theatralization (for example the iconic school bus display in Europe) and merchandising tools.

Office and school supply companies remains a critical distribution channel where BIC has a strong position thanks to the quality, reliability and value for money positioning of its product, all even more important for companies, administrations and schools.

In the last few years, BIC strengthened its distribution network by reinforcing its e-commerce positions. In 2023, BIC maintained its leading positions in Stationery online in key markets: the Group ranked number 1 in France with 21% market share, number 2 in the UK with 21% market share, and number 3 in the U.S. with almost 14% market share (in value YTD December 2023).

In line with its Horizon strategy, BIC’s historical Lighter category evolved to “Flame for Life”, focusing on all lighting occasions. Flame for Life aims to balance volume with a more value-driven model, powered by trade-ups, personalization and innovation, to respond to changing consumer trends, while focusing more on sustainability.

The worldwide pocket lighter market is estimated at 13.4 billion units (€4.9 billion in value) (9).

(BIC estimates – in value)

BIC is #1 worldwide in branded pocket lighters in value, with more than a 50% share in value in 2022 (excluding Asia) and leading positions in key geographies including North America, Latin America and Europe. The competitive advantages supporting BIC’s leadership position include safety, quality, strong brand awareness, automated and highly efficient manufacturing processes, and a solid distribution network.

(BIC Estimates)

BIC is well-known for providing safe, high quality and compliant lighters to consumers worldwide. A lighter is a plastic reservoir filled with pressurized gas that is lit by a flame. It can present a real danger if it is not designed and manufactured properly. The consequences can be severe and are often unknown to consumers. International Safety Standards protect consumers from unsafe lighters.

Two key standards apply to pocket lighters:

• ●international lighter safety standard ISO 9994, which sets out the basic safety requirements for a lighter. ISO 9994 is mandatory in major markets such as Canada (1989), Russia (2000), Brazil (2002), South Africa (2002), Argentina (2003), Thailand (2003), Mexico (2004), South Korea (2005), the 27 European Union member states (2006), Japan (2011), Indonesia (2011) and Turkey (2012);
• ●child-resistant requirements. A child-resistant lighter is purposely modified to make it more difficult to operate by children. Under this standard, the basic requirement is that a lighter cannot be operated by at least 85% of children under 51 months. Child-resistant legislation is mandatory in major countries such as the U.S. (1994), Canada (1995), Australia (1997), New Zealand (1999), the 27 members of the European Union (2006), Japan (2011), South Korea (2012) and Mexico (2016).

All too often, low-cost lighters too often fail to comply with safety standards. Since the late 1980s, lighter models imported from Asian countries have gained market share. They currently account for over half of the global market (in volume).

BIC has been defending its position in this competitive landscape since its creation and advocates for enhanced lighter safety and quality. BIC® lighters comply with even more stringent safety, quality, and performance requirements. For example, the gas reservoirs of BIC® lighters are made from POM (PolyOxyMethylene), a high-performance resin with very high impact resistance. This means that BIC® lighters contain more gas, allowing more ignitions thanks to their wall’s thinness. They are also filled with pure isobutane, which ensures the flame’s stability throughout the lighter’s life.

BIC offers a wide range of high-quality Pocket and Utility lighters manufactured with the highest safety standards.

While BIC’s shift to balance more volume with value in the model for its Lighter business started years ago, this was accelerated with the launch of the Horizon Plan. More recently the following developments were made to support this transformation:

• ●the acquisition of Djeep in June 2020, which strengthened BIC’s portfolio in the added-value segment of decorated lighters;
• ●the launch of BIC EZ Reach™, BIC’s first pocket Utility lighter, in July 2020. The product has already reached 5.8% of the U.S. pocket lighter market (Source: IRI YTD December 2023). In Europe, The EZ Reach™ lighter which was launched into most major markets in Europe accounted for almost 20% of total division’s growth versus last year;
• ●the deployment of Revenue Growth Management strategy to drive efficiency in promotional and pricing activities.

In 2023, added-value lighters, including BIC® EZ Reach™, Djeep®, utility and decorated lighters, represented 35% of BIC’s total Lighter Net Sales.

An important pillar of BIC’s Flame for Life strategy is to drive growth by expanding to all flame occasions through incremental usages, as lighters have extensive non-smoking-related usages among different consumer activities. For the last six years, BIC lighter teams have undertaken extensive research to deepen their knowledge of the different flame usages. One of the main findings confirmed that candles and cooking are the most important non-tobacco-related flame usages in developed and developing regions (Ipsos study – October 2021). These lighting occasions represent a growth opportunity for BIC, well-positioned to answer the usages non-related to tobacco thanks to the strength of its brand.

BIC® lighters are sold through traditional distribution channels (such as convenience stores and tobacconists), retail mass-market distribution stores, and online in the United States. Online and offline, in-store visibility is key to driving impulse purchases, and part of BIC’s historical strategy “A BIC seen is a BIC sold”.

In the traditional channel, which is the leading channel for lighters, BIC has strong positions driven by full-distribution based on efficient routes-to-market, and relevant customer and consumer programs driving value to the business: BIC offers a large range of decorated lighters as well as bringing new products to market such as BIC® EZ Reach™, addressing everyday needs while generating impulse instore purchases.

In the mass-market channel, BIC focuses on relentless store visibility based on a multi-location presence in store: at the check-out but also throughout affinity aisles such as candle and barbecue.

In e-commerce, in 2023, BIC continued to expand its BIC.com website in the U.S., driven by the “Design my BIC” offer, enabling consumers to create sets of personalized lighters. They can also find appealing special editions, monochrome sets and brand-new series of lighters.

BIC’s Blade Excellence division focuses on reinforcing its one-piece business with consumer-driven and sustainable added-value products and capitalizing on our advanced R&D and manufacturing capabilities through the creation of BIC Blade-Tech, the Group’s B2B business for the wet shave market.

The wet shave market was about 12.5 billion euros in 2022 and accounted for around 49% of the hair removal segment (10) in value. The estimate 2022-2026 CAGR (11) for Total Wet-Shave market is +7.6%.

(Euromonitor – 2022- In value)

The Wet-Shave market is split into three product segments: double-edge, one-piece and refillable. On the highly competitive environment of the one-piece and refillable segments, growth is mostly driven by new products which offer improved performance and added features. A constant ability to innovate is key to maintain a leadership position. With that objective, BIC has made the shift towards premiumization to gain market share on value-added segments, while keeping BIC’s strength in offering products at the right value.

The global landscape is dominated by three legacy brands (Gillette, BIC®, Edgewell) though over the last decade “disruptors”, primarily in the U.S. launching as direct-to-consumer brands, have emerged. While such brands have expanded presence by securing distribution in brick and mortar, they are not directly competing with BIC given their refillable segment focus.

BIC is the #3 worldwide player, with almost 7%(12) of the total wet shave segment. In the non-refillable segment (disposable), BIC ranks #2 worldwide with a 23.7% market share (13). The Group holds key positions in Europe, in the United States and in Latin America.

In the 1970s, BIC revolutionized wet shaving when it launched the first one-piece shaver: the single blade “classic”.

Over the last decade and supported by the implementation of the Horizon strategy, BIC has focused its innovation, sales and marketing efforts on the high performance three, four, and five-blade sub-segments, offering thus a complete range of female and male products:

• ●for Men: BIC® 3, BIC® Comfort 3®, BIC® Easy/Hybrid 3-blade, BIC® Flex range, and BIC® Flex Hybrid range;
• ●for Women: BIC® Pure 3® Lady, BIC® Soleil® range including Bella®, Glow®, Balance and Miss Soleil; BIC® Soleil Escape, BIC® Click Soleil 5;
• ●for Men and Women: at the end of 2022, BIC launched BIC® EasyRinse online in the U.S. market, a new razor for men and women featuring a first-of-its-kind blade design and patented anti-clog technology. This new product has been rolled out throughout 2023, in stores in the U.S.

In 2023, 64% of Blade Excellence Net Sales was generated with added-value products.

In line with Horizon strategy, BIC also innovates with new products centered on sustainability and tailored to consumer evolving trends. As such, BIC recently launched:

• ●an innovative hybrid shaver range in Europe in 2021 made with recycled plastic handles and sold with recyclable packaging;
• ●BIC® Click Soleil 5 in 2022: a razor for women with a handle made from 40% recycled material and co-developed with the raw material supplier Avient.

With Horizon, BIC created BIC Blade-Tech, aimed at leveraging BIC’s leadership position as a high precision manufacturer to power other brands and thus expand our addressable market, in the wet shavers category, estimated to reach 14.9 billion euros for 2025 (14). A team including a commercial sales force dedicated to this new business, was created in 2021. BIC Blade-Tech started to ship its first customers, including both new and already established brands, in September 2021. In 2023, our B2B business BIC Blade Tech was impacted by clients’ revised business plans. However, in the fourth quarter it secured agreements with three new clients. These partnerships are promising and are expected to bear fruit in 2024. 

These include various strategic and tactical operations:

• ●DAPE 74 Distribution, which sells to tobacco shops in France;
• ●BIC® and non-BIC®-branded products: these include batteries and a line of shaving preps, all of which are designed to grow the BIC® Brand in key markets;
• ●advertising and promotional products in Europe.

BIC maintains a proactive approach to identify, assess, mitigate, monitor and manage key risks that could impact:

• ●employees, customers, shareholders’ interest, assets, environment or reputation;
• ●ability to achieve its targets and strategy;
• ●ability to stay true to its values; and
• ●ability to comply with laws and regulations including codes of ethics.

The assessment of the main risks takes into account the control measures implemented to reduce the risk (net or residual risk).

The risk factors set forth below regard matters that could have an adverse effect, including a material one, on our business, financial condition, results of operations and cash flows. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our business, financial condition, results of operations and cash flows.

BIC has taken a series of measures to mitigate the risks as described in Section 2.2 Description and mitigation of main risk factors, Section 2.3 Vigilance Plan and Section 2.4.4 Insurance - Coverage of risks, as well as in Chapter 3.

Additionally, a description of the risk management system can be found in Section 2.4. Risk management and internal control procedures implemented by the Company and Insurance.

The Group continues to closely monitor and mitigate the impact of geopolitical tensions and wars on our people and operations globally. The Group has no industrial presence in Russia and Ukraine. In 2023, Russia and Ukraine accounted for less than 3% total BIC Net Sales.

BIC does not manufacture product in or directly sources raw material from Russia. At this time, BIC has restricted its product range to cover essential grooming, writing, and household items only, such as lighters, and has paused all advertising, promotion, and capital investment in Russia. As the situation evolves, we will continue to monitor and comply with any new regulatory decisions, such as sanctions, and remain diligent in protecting our team members in the region. BIC maintains complete control of its brand and intellectual property in Russia to counter any potential moves for brand appropriation.

Please refer to risks related to “Supply Chain and Production”.

The French Law no. 2017-399 of March 27, 2017, on the duty of vigilance of parent companies (“the Vigilance Law”) applies to French companies employing, for at least two consecutive years, at least 5,000 employees including in their direct or indirect subsidiaries whose registered office is located in France or at least 10,000 employees including in their direct or indirect subsidiaries whose registered office is located in France or abroad.

In accordance with the Vigilance Law, and with Article L. 225-102-4 of the French Commercial Code, BIC implemented, through its Vigilance Plan, the necessary due diligence measures to identify, as an obligation of means, risks and preventive measures relating to the following themes:

• ●Human Rights and Fundamental Freedoms infringements;
• ●Health and Safety hazards; and
• ●Environmental damage.

Major risks which are targeted may arise from:

• ●BIC Group activities, which may include activities of the Group’s parent company, and subsidiaries controlled directly or indirectly by BIC within the meaning of Article L. 233-16 of the French Commercial Code (the “Subsidiaries”); and
• ●Third-Party Risks related to the activities of its subcontractors and suppliers with whom Group companies have an “established business relationship” (1).

For the purposes of this section, the Group complies with the principles outlined in Part II of the Risk Management and Internal Control Systems – Reference Framework updated in July 2010 by the Working Group chaired by Olivier Poupart-Lafarge and established by the AMF. This represents a partial adoption of the full text that also provides an Application Guide for internal control procedures for the accounting and financial information published by the issuer.

The related specific control activities are the responsibility of the local subsidiaries. Those subsidiaries continuously adapt them in response to current circumstances, drawing guidance from the Group Accounting and Controllers’ Manuals. The Application Guide has not been formally compared to existing procedures and processes, but the Group does not expect material differences given the similarities between the Application Guide and these two manuals.

Risk management encompasses a set of resources, behaviors, procedures and actions that are tailored to the characteristics of the Company and its employees while observing legal requirements.

Risk represents the possibility of an event occurring that may affect:

• ●the Company’s ability to achieve its business goals and core strategy;
• ●the Company’s ability to abide by its values, ethics, laws and regulations;
• ●the Company’s personnel, assets, environment, financials, or reputation.

Risk management also helps to:

• ●maintain and protect the Company’s value, assets and reputation;
• ●safeguard the Company’s decision-making and processes to achieve its objectives;
• ●ensure that the Company’s actions are consistent with its values.

The risk management process also incorporates the definition of internal control company-wide to ensure that:

• ●the Company remains in full compliance with evolving laws and regulations, and operates with the highest level of ethical business standards;
• ●the instructions and guidelines issued by Executive Management are followed;
• ●the Company’s internal processes remain effective and continuously improve, particularly those involving the protection of its assets. Assets are understood to be both tangible and intangible (know-how, brand, image or reputation) and are used throughout existing Company processes;
• ●financial information is reliable.

BIC’s internal controls are designed to provide reasonable assurance on:

• ●compliance with all applicable laws and regulations governing the Company and its daily operation;
• ●providing ongoing communication and guidance to employees to ensure they understand the full scope of their responsibilities and expected contributions to the Company;
• ●providing guidance for operational, industrial, commercial and financial processes;
• ●producing reliable financial statements (2). The reliability of such information depends on the quality of the associated internal control procedures and system (see reporting procedures Section 2.4.2.4 Internal Control procedures) including:
  • ●the segregation of duties principle, enabling a clear separation between input, operating and retention duties,
  • ●guidance regarding the identification of the source of the information and materials produced,
  • ●transactions recorded in accordance with applicable accounting standards.

Risk management and internal control, as defined in this report, apply to SOCIÉTÉ BIC as Group parent company and all Group consolidated entities.

The internal controls in place have been designed for all entities to reflect:

• ●the existing organization;
• ●the objectives set out by the Board of Directors and the Executive Committee (see Section 2.4.3 Risk Management and Internal Control Participants, Specific Structure(s) in Charge/Respective Roles and Interactions); and
• ●compliance with laws and regulations.

Supporting principles and systems have been set up in all relevant areas and subsidiaries, considering local specificities and regulations. These principles are also known to and followed by the various centralized Group departments.

The Risk Management principles also apply to any entity joining the Group. Whenever possible, the Group asks its subcontractors and suppliers to also comply with these principles.

Risk management and internal control systems have inherent limitations and cannot provide an absolute guarantee that the Company’s objectives will be met. Despite the control measures we currently have in place, our systems and those of our third-party service providers are subject to the ever-changing risk of compromised security, acts of vandalism, human errors and other unforeseen events.

Moreover, any time a control activity is to be implemented, the comparative cost/benefit must be considered, ensuring reasonable coverage of the necessary controls.

General characteristics of BIC’S sustainability reporting

To help its readers better understand the information provided, BIC covers the items required by French executive order No. 2017-1265 of August 9, 2017 (1) in the following chapters of its management report:

In 2020, BIC released its first Climate-Related Performance Report based on the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD). This report is now part of Section  3.2.1, and its sections are therefore structured as suggested by the TCFD.

BIC identifies information expressly required in the Non-Financial Performance Statement with the initials [NFPS] and [NFPS Risk X]. The Group also includes all the action plans related to its Sustainable Development Program, including those that do not directly help prevent or reduce a major risk. The Group has, however, reorganized this chapter to give precedence to the information directly related to the Non-Financial Performance Statement.

In 2022, BIC decided to start aligning the structure of its Non-Financial Performance Statement with the upcoming Corporate Sustainability Reporting Directive’s (CSRD) Sustainability reporting standards, hence Chapter 3’s new outline.

A summary table of the Non-Financial Performance Statement can also be found in Section  3.5.1.

Main CSR risks and opportunities are outlined in Section  3.1.3.

Launched in 2003, BIC’s Sustainable Development Program continues to evolve and addresses major environmental and human issues as well as stakeholder expectations. It also benefits from advances in R&D, innovation, and evolutions in the Group’s operations.

Since 2018, the program has been guided by the five ambitious commitments that make up “Writing the Future, Together”. In 2020, this program was reinforced with additional commitments on its use of plastic. Furthermore, in 2022, BIC announced its Greenhouse Gas (GHG) emission reduction targets.

In 2017, BIC defined ambitious commitments that enable the Group to create value over the long term for all stakeholders. They are based on the principles of its sustainable development Program – materiality assessments and the UN Sustainable Development Goals – and on regulatory requirements, consultations with stakeholders, and lessons drawn from regular benchmarking.

This vision is defined in its “Writing the Future, Together” program. It is driven by BIC’s ambition for sustainability (see Section  3.1.1.2) and comprises five commitments which are an integral part of the Group’s strategic Horizon plan.

The table above charts how “Writing the Future, Together” contributes to the UN SDGs. BIC primarily contributes to the following two SDGs through the products it manufactures and markets, and its monitoring and compliance program, which ensures its products are safe and comply with health and environmental standards (see Section  3.3.4).

SDG 8. Decent work and economic growth. BIC contributes by designing products and developing production methods that use resources efficiently and include recycled materials (see Section  3.2.3.2).

SDG 12. Responsible consumption and production. BIC contributes, through its eco-design program, which provides consumers with information to help them make their purchasing choices.

The Group also contributes to the following UN Sustainable Development Goals within the direct scope of its operations or its sphere of direct influence:

SDG 1. End poverty;

SDG 3. Good health and well-being;

SDG 4. Quality education;

SDG 5. Gender equality;

SDG 6. Clean water and sanitation;

SDG 7. Affordable and clean energy;

SDG 9. Industry, innovation and infrastructure;

SDG 10. Reduced inequalities;

SDG 13. Climate action;

SDG 14. Life below water;

SDG 15. Life on land;

SDG 16. Peace, justice and strong institutions.

It does so by:

• ●making simple, reliable products that meet essential needs available to everyone;
• ●taking initiatives that support its team members;
• ●offering various products and programs that promote access to education;
• ●reducing the environmental impact of its factories;
• ●ensuring respect for Human Rights in its own factories and by its suppliers and subcontractors; and
• ●the actions of the BIC Corporate Foundation.

BIC’s stakeholder engagement strategy is executed by the Head of Investors Relations and BIC’s management. The strategy’s objective is to establish and strengthen relationships with financial investors and multi-stakeholder initiatives that help us support our sustainable goals by regularly participating in ESG conferences, roadshows and webinars. This strategy serves to anticipate stakeholders’ expectations and identify future collaborations as well.

In 2023, BIC received the Transparency Award for the best Universal Registration Document of the French SBF120 and also ranked fourth in the Labrador Transparency Awards which reward the Company’s communications in terms of transparency and quality.

Year after year, BIC fulfills its commitment to answer questions from the following non-financial ratings agencies: Vigeo, Sustainalytics, MSCI, GAIA, FTSE, ISS ESG.

[NFPS risk 2] In 2022, BIC completed a physical and transitional climate change risk analysis of its value chain. The Company identified the following upstream and downstream transitional and physical risks related to climate change as being among its main CSR risks (see Sections  2.1. and  2.2.):

The challenges of global warming are also a source of opportunities for BIC. These include:

BIC’s longstanding commitment to sustainability started in 1994 with its first Life Cycle Product Analysis. BIC has been working to reduce its environmental impact for more than 20 years and has integrated climate change into its business strategy by implementing risk and mitigation plans, tracking greenhouse gas (GHG) emissions for all scopes, and publicly disclosing its annual GHG emissions. These actions to increase environmental performance transparency were rewarded by a confirmed A- leadership 2023 CDP score on Climate Change. BIC continues its commitment to the French Business Climate Pledge.

Over the years, BIC’s sustainable development efforts evolved into the “Writing the Future, Together” Sustainable Development Program, launched in 2018, which established five major environmental, social, and societal commitments, and made additional commitments to transform the way the Group uses plastic in 2020. This program led BIC to create innovative processes and increase its use of renewable electricity.

In 2022, BIC announced ambitious greenhouse gas (GHG) emission reduction targets (see Section  3.2.1.2.2). Based on the Company’s “Writing the Future, Together” Sustainable Development Program and years of innovation resulting in long-lasting products with low environmental footprints, these targets reinforce BIC’s contribution to creating a sustainable future for all.

Every year the Executive Committee reviews the progress of the “Writing the Future, Together” program, which includes goals that contribute to the fight against climate change (commitments #1, #2 and #4). In 2020, the Group fulfilled Commitment #2 to use 80% renewable electricity for its plants and offices. A new target of 100% renewable electricity has therefore been set for 2025.

Climate risks related to direct, upstream, and downstream operations are incorporated into the Group-wide risk identification, evaluation and management processes. The Group Risk Management Department is responsible for identifying and analyzing risks.

The identification process highlights risks arising from both external and internal sources. The key consideration is the potentially significant impact on the Group’s strategy, objectives, personnel, assets, environment and/or reputation. To enable a fluid approach, the risk identification and analysis process comprises two complementary components: a “bottom-up” free approach and a “top-down” structured approach. This two-fold approach makes it possible to identify redundancies and discrepancies (see Section  2.4.2.3).

The Executive Committee is responsible for managing the risks identified in BIC’s major risk mapping. Progress reports on the action plans to address certain key risks are also reviewed at meetings of the Board of Directors.

The Executive Committee and the central Group departments, including the Legal Department and the Sustainable Development Department, monitor the risks on an ongoing basis.

BIC is committed to ensuring that its facilities, including both factories and offices, operate in an environmentally responsible way. BIC strives to reduce the impact of its manufacturing operations and optimize product shipping.

BIC exerts strong environmental control over its entire supply chain and favors in-house production over contract manufacturing: 92% of the Group’s net sales are generated by products manufactured in its own factories.

To manufacture its products, BIC uses raw materials (plastics, inks, paperboard, metals, butane, etc.), consumes resources (water, energy) and produces waste. The Group is aware of the environmental impact of its production activities and is committed to minimizing it. While demand for raw materials is mainly determined by product design (see Section  3.2.3), BIC’s factories are tasked with optimizing water and energy consumption, as well as reducing greenhouse gas (GHG) emissions and waste production.

In 2022, the Corporate Stakeholder Engagement Department conducted a study on the physical and transitional risks due to climate change in compliance with TCFD, to better understand these risks in BIC’s value chain.

In 2022, BIC employed the RCP 2.6, SSP2, RCP 6, SSP3 and SSP4 to build its own bespoke physical scenario to evaluate physical and transitional risks. The results were communicated to relevant leadership members.

In 2022, BIC committed to eliminating 50% of Scope 1 GHG emissions and 100% of Scope 2 GHG emissions by 2030. These objectives are in line with the Paris Agreement targets and endorsed by the fact that BIC has already nearly met its target of procuring 100% renewable electricity for all sites by 2025 (91% in 2023). Its Scope 3 objective is an overall 5% reduction by 2030, including -30% in the Flame for Life division.

In 2023, BIC made the transition to a specific carbon accounting tool which will facilitate data control, consolidation, and auditing from 2024.

Scope 1 and 2 targets were defined using the principles of the Paris Climate Protocol and based on the 1.5°C pathway methodology. The Group’s Scope 1 and 2 commitments exceed recommended targets. The Scope 3 target was weighted using a 2.0°C pathway methodology and is reviewed every year by the Sustainable Development Teams.

Electricity consumption at BIC facilities accounts for 9.34% (6) of the Group’s total emissions. As expressed in Commitment #2 – Acting Against Climate Change of its “Writing the Future, Together” program, BIC aims to use 100% (7) renewable electricity by 2025.

The roadmap established by BIC to meet this goal reflects a strategy in which each country or facility reviews its opportunities to source renewable electricity based on its own regulatory and operational restrictions. To keep pace with the frequent market and regulatory changes in this sector, BIC focuses on renewable electricity (8) certificates, green contracts and long-term Power Purchase Agreements as well as the electricity generation potential of certain facilities.

Key actions taken over the years and in 2023:

• ●in France, BIC purchased renewable electricity certificates (Guarantees of Origin – GoO) for all its factories and its Clichy head office. This means that all BIC® products manufactured in France were produced using renewable electricity. In 2023, BIC signed a renewable electricity Power Purchase Agreement (PPA);
• ●in Greece, BIC has purchased GoO certificates for the electricity consumed by all its facilities since 2016, and also signed a renewable electricity Power Purchase Agreement (PPA) in 2023;
• ●in the United States, the purchase of renewable wind energy certificates (U.S. Renewable Energy Certificates – RECs) covers the energy needs of all American facilities;
• ●in Mexico, BIC completed a Power Purchase Agreement (PPA) tender process for renewable electricity;
• ●in South Africa, the purchase of GoO certificates covers all the factory’s consumption;
• ●since 2018, all BIC’s lighter factories have been powered by renewable electricity, and the Group is researching ways to develop its facilities’ energy self-sufficiency (waste heat recovery, photovoltaic and solar thermal energy, etc.); and
• ●the Cello Stationery Products site installed solar panels in 2019, and began purchasing iREC certificates in 2023.

The goal of BIC’s shipping management system is to ensure product availability while:

• ●maximizing customer satisfaction;
• ●reducing the environmental impact of its transport operations; and
• ●optimizing costs.

BIC has factories worldwide, which tends to limit the need for product shipping. For example, over 80% of the products sold in Europe are manufactured there.

BIC uses two types of transport for its products (9):

• ●“intra-Company transport” which refers to factory-factory and factory-warehouse shipments (inter- and intra-continental); and
• ●“distribution shipping” which refers to shipments from factories or warehouses to the end customer.

Due to the environmental and financial impact of air freight, the Group strives to minimize its use. In 2023, due to global supply chain challenges and to mitigate business risk and support our customer service levels, 1.06% of total tonnage of intra-company transport (excluding raw materials, components, tools, and machinery) was shipped by air which accounted for 42% of the Group’s total emissions from transport in that year.

BIC pays close attention to air freight and intends to continue to keep it under 2.3% for intra-company transport.

BIC outsources its transport operations but maintains a high level of internal expertise in the management of service providers, flow engineering and transport management tools.

BIC’s responsible shipping approach has three objectives, which it intends to meet by implementing the following measures:

These emissions are mainly related to the Group’s purchases of materials, especially plastics.

In 2020, BIC announced two new ambitious goals as part of its “Writing the Future, Together” program. These two goals, which are also part of the Group’s Horizon corporate strategy plan, will help significantly reduce its GHG emissions:

• ●by 2025,  BIC aims for 100% of its consumer plastic packaging to be reusable, recyclable, or compostable; and
• ●by 2030, BIC aims for 50% non-virgin petroleum plastic for its products.

The Group will achieve these goals by implementing its “4 Rs” philosophy (described in Section  3.2.3.2). They could help reduce its GHG emissions by about 10% (at constant perimeter).

To manufacture and distribute its products, BIC uses raw materials (plastics, inks, packaging, metals, butane, etc.), consumes resources (water, energy), produces waste, and uses transportation services, all of which are responsible for greenhouse gas emissions.

The increase in the share of renewable electricity vs. total electricity consumption is due to the initiation of the Power Purchase Agreement (PPA) in Mexico and the purchase of Renewable Energy Certificates (RECs) in India.

The Group has improved its energy efficiency by 11% in ten years.

BIC launched a number of energy efficiency projects in 2023 in accordance with the GHG emissions reduction plan started in 2022, which focuses on cutting fossil-fueled energy consumption. The projects included setting up heat recovery systems at plants, installing heat networks, replacing standard light bulbs with LED bulbs, optimizing processes, conducting energy consumption studies, and introducing more energy-efficient equipment.

In 2020, BIC reviewed its method for evaluating Scope 3 emissions, in line with the GHG Protocol. This was to provide an annual report on all emission sources related to its operations. BIC already reported on other emission sources related to raw material procurement and intra-Company transport in previous years.

A study of BIC’s global carbon footprint shows the following breakdown of greenhouse gas emissions:

In this section, the Group discloses the information required by the European regulation 2020/852 of June 18, 2020.

BIC is committed to the ecological transition. However, its core activities do not directly correspond to those retained in the delegated act on climate change adaptation, mitigation, water, pollution, circular economy and biodiversity, for which the highest emitting activities on scopes 1 and 2 with a potential for transformation have been prioritized. Thus, the share of BIC’s eligible revenue for the year 2023 is zero (some secondary activities might be eligible but are not significant for the Group and so not included in the calculation of the eligible revenue).

For detailed results please visit Annex I, II and III (Section  3.5.5). 

The share of BIC’s eligible OpEx for the year 2023 is zero (some secondary activities might be eligible but are not significant for the Group and so not included in the calculation of the eligible operating expenditures).

For detailed results please visit Annex I, II and III (Section  3.5.5). 

The CapEx definition according to the Taxonomy is the following: "acquisitions / increase flows of property, plant and equipment, right of use and intangible assets (gross amounts) before revaluation, depreciation, amortization and changes in fair value, including acquisitions through business combinations".

BIC’s eligible but not environmentally sustainable (not Taxonomy-aligned activities) capital expenditures relate primarily to expenditures associated with the following European green taxonomy activities (and their code) contributing to climate mitigation:  

• ●3.6 Manufacture of other low carbon technologies; 
• ●7.3 Installation, maintenance and repair of energy efficiency equipment ; and
• ●9.1 Close to market research, development and innovation. 

These capital and operating expenditures include the following BIC projects (11): 

• ●investments in technologies that mix virgin plastic material with recycled plastic material; and 
• ●investment in equipement with lower energy consumption, but not included in the taxonomy.

As a result, BIC’s share of Taxonomy-eligible but not aligned capital expenditures for the year 2023 amounts to 3% out of a total of €137 million (see Note 9 to the Consolidated Financial Statements, Chapter  6.1.). 

BIC’s environmentally sustainable activities’ (Taxonomy-aligned) capital expenditures relate primarily to expenditures associated with the following European green taxonomy enabling activities (and their code) contributing to climate mitigation:

• ●3.6 Manufacture of other low carbon technologies;
• ●4.1 Electricity generation using solar photovoltaic technology;
• ●4.23 Production of heat/cool from renewable non-fossil gaseous and liquid fuels;
• ●4.29 Electricity generation from fossil gaseous fuels;
• ●4.31 Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system;
• ●5.3 Construction, extension and operation of waste water collection and treatment;
• ●5.9 Material recovery from non-hazardous waste;
• ●7.2 Renovation of existing buildings;
• ●7.3 Installation, maintenance and repair of energy efficiency equipment;
• ●7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings);
• ●7.5 Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings;
• ●9.1 Close to market research, development and innovation.

These capital expenditures include the following BIC projects (12): 

• ●Investments in the recycling of non-hazardous waste back to the manufacturing process; 
• ●Investment in lighting system replacement as well as guardhouse boiler replacements; 
• ●Investments in charging stations for electric vehicles; 
• ●Investments in smart meters for gas, heat, cooling and electricity;  and
• ●Investments in air renewal management. 

The share of Taxonomy-aligned BIC capital expenditures for the year 2023 amounts to 2% out of a total of €137million. For detailed results please visit Annexes I, II and III (Section  3.5.5).

The revenue, capital expenditures and operating expenses considered cover all of the relevant BIC activities corresponding to the financial consolidation scope. 

The financial data is taken from the consolidated financial statements (see Section  6.1.) as of December 31, 2023, and the revenue and capital expenditures can therefore be reconciled with the financial statements. For Capital Expenditures, the total included tangible assets (Note 9-1 ; 126,848K€) and intangible assets (Note 11 ; 10,268K€). 

Operating expenses total includes OpEx with the definition for Taxonomy: "costs related to research and development, building renovations, short-term lease, maintenance and repair". The total amount is 58,704,700€ which equals to 11% of Total OpEx for BIC which is not significant and representative of BIC operationnal activities. The Group has decided to apply the exemption of eligibility and alignment calculation for OpEx.  

Companies in which the Group exercises joint control or significant influence are excluded from the calculation of the ratios defined by the delegated act known as “Article 8” of the taxonomy regulation (13).

BIC carried out its assessment of its business activities, eligible and aligned costs and investments and the determination and allocation of revenue, capital expenditure (CapEx) with reference to the climate delegated acts of the taxonomy, in the following manner. 

In 2023, each BIC business unit (GI&I (14), Group Supply Chain, Lighters, Group Commercial & Corporate, and Total Group Partnerships & New Business) proceeded to identify potential eligible capital expenditures by employing existing internal sustainability criteria which included: energy reduction, decrease in raw material use and an other positive impact on the environment among others. To ease the identification of eligible activities, each business unit then referred to the Taxonomy Compass, which lists all European activities eligible. 

Once eligibility was established, the internal teams proceeded with the alignment assessment of these capital expenditures. The Group assessed the project‘s compliance with the substantial criteria for each of the EU Taxonomy activities as well as the Do Not Significantly Harm criteria when applicable. The Do Not Significantly Harm criteria for climate adaptation was assessed at a Group level as a result of a Group physical climate risk analysis carried out in 2022. The minimum safeguards were screened at a Group level to ensure alignment with the four key topics: human rights, bribery and corruption, taxation, and fair competition. 

The sustainable development teams in consultation with the Finance Department obtained the corresponding eligible and aligned capital expenditures (CapEx). These results were verified by the EU Taxonomy project coordinator and discussed with the interested parties. Once approved, the amounts collected in local currency were uploaded to the Group’s financial consolidation system to guarantee coherency with the Group’s consolidated financial statements and published in the Non-Financial Performance Statement Taxonomy Annexes I, II and III (see Section  3.5.5). 

The Group has based its analysis on a list of CapEx projects which are all unique and reconciled to financial statements. Therefore, we are confident in avoiding double-counting.  

For over 75 years, BIC has been creating ingeniously simple and joyful products that are a part of every heart and home. The hard work and dedication of the Group’s team members from across the globe has been key to its success as a business.

The Group’s workforce of more than 14,000 people supports operations in more than 160 countries, with approximately 4 million sales outlets worldwide. This makes BIC a truly global business, reflecting the diverse backgrounds and experiences of the communities where BIC’s products are available globally.

As the Group perpetuates its vision of bringing simplicity and joy to everyday life for consumers in collaborative, sustainable, and responsible ways, the BIC Human Resources team, along with senior leaders, continues to foster a shared corporate culture that is deeply rooted in our BIC Values, philosophy and rich history. All team members clearly understand how their work directly influences the Group’s organizational success as the team guides BIC into the future.

In 2023, BIC prioritized several key initiatives to help align its organization with the Invent The Future strategy and Horizon plan, including:

For the year ended December 31, 2023, BIC had 10,322 permanent team members, 1,262 fixed-term contracts, interns and apprentices, and an average of 3,059 temporary staff in 43 countries.

BIC continued to focus on continuing the transformation of the business and ensuring the right organization is in place to support the growth ambitions outlined in the Horizon plan.

To achieve these goals, the Group’s global workforce will need to adapt to evolving business processes and meet consumer needs. It is critical that BIC’s team members come together to contribute their unique perspectives, experiences, and ideas.

In 2023, the global workforce shrank as a result of a reduction in headcount in India, and a reduction globally in the use of agency temporary workers.

BIC’s strategic approach to talent attraction and retention is critical. BIC’s Recruitment Center of Excellence (COE) works to support the continued upskilling of its teams worldwide.

With team members across the globe, the Talent Acquisition team continues to reinforce best-in-class recruitment techniques/processes and has expanded the breadth and depth of their work with the key initiatives outlined below for 2023.

• ●BIC continued its strategic rollout of the new Employee Value Proposition to position the organization as an employer of choice. By amplifying the team member experience via team member-focused stories, the applicant flow to the careers website has increased and influenced employee retention;
• ●Various interview resources were deployed on a global scale, including the Global Interview Matrix, delineating the specific interview steps for candidates at different role levels. In addition, Global Interview Guides were introduced, detailing BIC’s strategic approach to competency-based interviewing. These resources aim to enhance the knowledge and preparedness of hiring managers, ensuring a consistent, unbiased and fair experience for all candidates. To continue to position BIC as an engaged employer, the HR teams continue to post content and respond to reviews on Glassdoor. BIC’s overall score averaged 4.1 out of 5 for the year, consistent with our 2022 score; 

• ●in the spirit of continuously improving the recruitment process, HR teams measure satisfaction and effectiveness through a “Net Promoter Score” (NPS), which provides an indication of loyalty and likelihood to recommend BIC to others. Candidates, new hires and hiring manager NPS scores fall into the “Excellent” category for satisfaction;
• ●BIC continued to support the development of the next generation entering the workforce through university recruiting efforts for internships in the U.S. and Latin America and apprenticeship programs across Europe. Members of the Talent Acquisition team attended local university and college recruitment events/career fairs to increase interest in our early career opportunities and converted several students into full-time roles upon completion of their apprenticeship/internship; and
• ●recruiting team members worked with students in underserved communities across the globe, by sharing their insights and best practices to help support early career development. Team members hosted and participated in several recruiting-related workshops, including resume reviews, job search, networking sessions and more.

For more details on BIC’s diversity, equity and inclusion policies, see section  3.3.1.5.

For the Group, workplace safety means ensuring the physical and mental well-being of team members by preventing accidents and occupational diseases.

The health and well-being of team members also means reducing the incidence of work-related diseases, primarily musculoskeletal disorders and psychosocial risks (PSR) such as stress. BIC keeps a close watch on these issues and constantly strives to reduce all forms of job-related suffering.

To this end, in conjunction with the above-mentioned approaches, programs to promote well-being at work are coordinated Group-wide and rolled out locally as required by each facility.

[NFPS Risk 4] BIC has identified “health-safety in the workplace” as one of the major CSR risks resulting from its operations. BIC’s operations, both industrial and commercial, expose workers to various occupational risks (physical, chemical, psychosocial, biological, ergonomic) that differ from function to function (headquarters, factories, sales force). Managing this risk is an opportunity to position BIC as a desirable employer through its health and safety policy.

For the Group, a commitment to improving safety in the workplace is key to team member engagement. This helps build loyalty.

The information on health and safety in the workplace presented in this chapter covers all the Group’s operations. The policies, actions taken and results are disclosed with their respective application perimeters.

Safety in the workplace is a fundamental priority for BIC. The “Writing the Future, Together” program embodies this commitment by targeting zero lost-time incidents (24) at all BIC facilities by 2025.

The Group uses all available means:

• ●health and safety management;
• ●ongoing improvement of working environments;
• ●working time arrangements; and
• ●raising awareness of safety issues.

Inspired by the “Vision Zero” approach developed by the International Social Security Association (25), the Group is developing a program that incorporates health, safety and well-being at work, at every level. The goal is zero sick leave days due to on-site accidents for everyone who works for BIC.

This is based on the ISSA’s Seven Golden Rules:

• 1 .Take leadership – demonstrate commitment;
• 2 .Identify hazards – control risk;
• 3 .Define targets – develop programs;
• 4 .Ensure a safe and healthy system – be well-organized;
• 5 .Ensure safety and health in machines, equipment and workplaces;
• 6 .Improve qualifications – develop competence;
• 7 .Invest in people – motivate by participation.

This Zero Lost-Time Incidents (1) goal requires extra effort to improve on the Group’s safety culture and policies across all operations and requires the implementation of specific local actions.

BIC adopts a Health & Safety program that contributes to a healthy and safe working environment that protects the physical and mental integrity of team members. In keeping with its Environment, Health & Safety (EH&S) Policy, BIC strives to prevent or at least reduce health and safety risks for its team members, subcontractors and those living or working near its production facilities.

The Group rolls out safety management systems at its production facilities. Each facility has an EH&S manager in charge of rolling out the EH&S Policy and following up with efforts to reduce the health and safety risks team members face. They report to the industrial directors.

Within the Global Supply Chain business unit, the Group’s health-safety program is built around a number of tools that continue to evolve in line with the organization’s needs:

• ●the “Service Now” platform, launched in August 2023 for all BIC sites, monitors and manages workplace accidents (evaluating risks, recording and documenting accidents, defining corrective action plans), allowing each entity in the organization to define an effective action plan;
• ●safety reporting, which has been extended to all BIC facilities since November 2023 (factories and headquarters);
• ●an Environment, Health & Safety reference system, also called the EH&S maturity reference system;
• ●safety watches (behavioral observation visits) in factories. During visits, team members are asked about unexpected behaviors in a spirit of ongoing improvement and dialogue;
• ●Global Safety Calls each month; these gatherings are attended by all factory directors, their EH&S managers and the Management team at GSC sites (26); and
• ●Central and cross audits conducted by the EH&S Director and EH&S members respectively. Audits take place at least once a year at each site (except in lighter factories). The focus of the cross audits is decided annually, based on the priorities set by the EH&S Team, and audit checklists are communicated in advance. Detailed reports are shared with all stakeholders at the end of the audit. The action plan progress is then monitored on a monthly basis.

In 2022, the Group identified two key focus areas to achieve the Zero Lost-Time Incidents (1) target by 2025:

• ●raising machine safety thresholds and standardizing them across the Group; and
• ●increasing levels of safety culture awareness among our team members.

Based on these key focus areas, the Group launched or continued several initiatives in 2023, including:

• ●conducting ISBTs (Individual Safety Behavioural Trainings) on site to improve employees’ perception of danger and enable them to acquire a new mindset;
• ●organizing a World Health & Safety Day, when various health and safety activities are held at every GSC site at the same time(27);
• ●organizing additional safety days at several sites to engage and train team members on EH&S topics;
• ●promoting one EH&S topic each month, on which EH&S teams provide material for the local teams;
• ●sharing knowledge on selected EH&S topics within the EH&S team. Every month, a member of the team chooses a specific subject and trains the rest of the team on it. Examples include Machinery Safety in February, and Ergonomics in May 2023(28);
• ●updating the Group’s EH&S policy, signed by the CEO and shared with all facilities;
• ●encouraging team members to proactively report unsafe events through the 2023 edition of the key performance indicator campaign. This year, the safety threshold was raised in order to include more events and thus better prevent harmful ones. The campaign began in July 2023 and lasted until the end of September 2023;

• ●focusing specifically on the sites with more than two incidents, identifying root causes, and designing specific action plans using inputs from other sites;
• ●reestablishing ISSA’s Seven Golden Rules, which are customized to each facility’s major hazards and risks and woven into management responsibilities;
• ●reviewing critical standards such as incident investigation, reporting, and change Management;
• ●sharing lessons and best practices in the EH&S SharePoint, which is open to all internal stakeholders;
• ●choosing certain reported incidents as examples to be shared among all facilities to promote knowledge sharing and implementation of key measures when required;
• ●organizing safety stand-downs to raise team members’ awareness about serious incidents;
• ●instituting monthly training sessions for EH&S teams on advanced technical subjects;
• ●inviting external stakeholders to train EH&S team members on machine safety, as well as to discuss relevant EH&S topics;
• ●implementing machine safety assessments at all facilities; and
• ●prioritizing action plans to improve machine safety across all facilities.

Across all BIC facilities, accidents resulting in lost work time for BIC team members are mainly caused by same-level falls and the handling of materials and machines. In 2023, there were 36 lost-time incidents for BIC headcount, while 53 facilities achieved zero lost-time incidents. 

These figures reflect a significant improvement in the number of lost-time incidents reported at all facilities for BIC headcount (36 in 2023 vs 60 in 2022).

The incidence rate for the BIC headcount was 1.51 and the severity rate 0.08, both decreasing in comparison to previous years.

The development and implementation of action plans continued in 2023 with a view to an increased safety culture and a decrease in both rates. We renewed the 2022 Safety Focus Action Plan for the Top 5 Factories, with adjustments based on the 2022 results. The update involved:

• ●analyzing incidents in 2023, especially those with a high number of lost workdays, and seeking patterns;
• ●based on the findings of the incidents analysis, taking targeted actions – e.g. training by a third party, raising awareness through knowledge sharing with all facility employees – and prioritizing those that eliminate the risk;
• ●setting targets, monitoring, and acting upon the leading indicators (first aid cases, near misses, behavior-based safety); and
• ●strongly communicating the importance of the plan to teams and urging leadership teams to be an example.

The plan will evolve in 2024, as incident rates in two of the top five factories dropped dramatically in 2023. In the coming year, those plants will share their good practices with the remaining three so that their local expertise will help increase safety throughout the Group.

Most occupational diseases, which so far have only been monitored in France, are related to musculoskeletal disorders.

Well-being at work is defined by the World Health Organization (WHO) as “a state of mind characterized by a satisfactory harmony between the skills, needs and aspirations of the worker on the one hand and the constraints and possibilities of the work environment on the other”.

The Group strives to build a collaborative, performance-oriented environment while preserving the health and well-being of team members in the workplace.

This has led, in particular, to the development in some countries of agreements with trade unions based on principles such as work-life balance.

The Group is actively involved in preventive actions in terms of safety, occupational health, and well-being, such as preventing and monitoring occupational diseases and psychosocial risks. It also relays public health prevention campaigns (for example: Pink October, World Mental Health Day, International Women’s Day, International Day of Happiness).

An Employee Assistance Program (EAP) has been in operation for several years in the United States (at BIC CORPORATION), in France (the PASS program), in the Asia-Pacific region, and in Latin America. This service, set up for BIC team members and their families, offers a 24-hour helpline and face-to-face meetings with professionals.

Local Leadership Teams orchestrate communication about the various campaigns so all employees know what is on offer.

In 2024, all sites will be required to develop an employee well-being plan, monitored at Group level.

BIC’s absenteeism rate remains low, and we continue to actively monitor data across all sites in order to adapt action plans to local situations.

At BIC, development goes beyond just training. Team members are empowered to take ownership of their career paths and have access to the opportunities and resources they need to grow. For example, 2023 initiatives involved:

• ●implementing comprehensive learning paths designed to empower team members to cultivate and embody the Company’s core competencies, which are integral to our organizational culture and success and serve as benchmarks against which all employees are evaluated during performance reviews;
• ●launching learnings focused on the critical aspects of feedback for managers and team members, so team members understand the profound importance of feedback in individual and collective development, and so managers provide feedback in a manner that is fair, equitable and development-focused; and
• ●in the spirit of continuous improvement, launching a new approach to feedback so comments are given and received more consistently.

There have been several initiatives launched to support the transformation of the organization and team member expectations of development opportunities.

Our Learning & Development Strategy is linked to Horizon and focused on strategic capability growth by providing purposeful investment through simple, engaging and personalized experiences. These experiences are delivered to team members through a variety of mediums (i.e. e-learning, virtual instructor-led training, programmatic learning and learning journeys) to increase engagement across the organization. All offerings are aligned with business priorities and team member development needs, empowering individuals to unlock the power of their potential while sharing their own learning experiences and key findings with one another.

Our learning eco-system and the related initiatives include:

• ●our On-Demand Digital Learning Offering, which includes our new learning experience platform (Degreed) in combination with our new learning management system (SuccessFactors). It provides team members with the opportunity to build the right skills with a skills profile that they own, learning opportunities tailored to their goals and interests, and content curated (from millions of resources) to boost learning in the flow of work. The global learning paths included:
  • ●Degreed@BIC to help our team members discover how this digital learning platform can boost their professional development,
  • ●Core Competencies to assist our team members in developing and embodying the behaviors crucial to our organizational culture and success. These competencies act as standards against which all team members undergo evaluation during performance reviews and form the foundation for all leadership development programs,
  • ●Feedback with a specific focus on the essential elements of giving and receiving feedback, targeting both managers and team members. The objective is that team members understand the significant role feedback plays in individual and collective development. The initiative also aims at helping managers provide feedback in a fair, respectful, and development-oriented way,
  • ●Code of Conduct compliance training, along with the related policy, which establishes our core values and outlines the rules and behaviors that each team member is obligated to adhere to. This ensures the preservation and enhancement of our reputation;
• ●our Team Empowerment Offering, which delivers tailored solutions to boost business, team, and individual performance and growth. The aim is to foster high-performing teams and improve connection, collaboration, and communication. In 2023, 671 team members actively engaged in 47 sessions, resulting in an impressive 91% satisfaction rating; and
• ●our Experiential Leadership Signature Series, which focuses on leadership development, including coaching and mentoring.

At the core of everything mentioned above is our aspiration to foster a Feedback Culture, crucial in an environment that prioritizes continuous improvement. Consequently, a range of tools from Performance Touchpoints to 360 Feedback were introduced to streamline the solicitation and provision of feedback.

Furthermore, in addition to group-wide learning initiatives, each of our Business Units concentrates on developing functional capabilities aligned with Horizon. Here are some illustrative examples:

• ●in 2022, the Group Commercial Capabilities Center of Excellence initiated and launched the Commercial Academy. The pilot program was designed to equip over 140 members of our sales force at all levels with workshops, offering best-in-class tools and resources. The focus was on empowering them to effectively contribute to our Horizon strategy, with specific emphasis on acquiring growth insights, selling tailored solutions, and executing with excellence. As a foundational component of the Academy, all global Commercial team members were mandated to complete our Sales e-learning course, which imparts the fundamentals of our BIC selling model. Ongoing efforts involve the continuous addition of courses to the Commercial Academy, covering key commercial capability areas such as eCommerce, or RGM, with a significant emphasis on Marketing slated for 2024; 
• ●the Group Supply Chain has persistently rolled out various upskilling initiatives to address the developmental requirements of our manufacturing workforce. These programs center around five key priorities: emphasizing the significance of Environment, Health & Safety (EH&S) through preventive measures and training, implementing lean methods (value stream mapping/six sigma) to enhance efficiency and engagement, aiding the digital transformation of our processes, introducing processes and tools to boost workforce flexibility and streamline production management, and creating internal certifications linked to training programs to facilitate the generational transition.

The total number of training days increased due to further development of e-learning tools and the addition of several programs aligned to our continued commitment to the professional development of our team members globally.

The People and Culture Team, in partnership with Human Resource Business Partners (HRBP), held Talent Review sessions in every business unit across every function. The sessions focus on effectively and consistently identifying critical roles and high potential team members. They help match talent to the roles that are most critical for business success.  Analysis of the Group’s bench strength and development needs for BIC’s high potential team members are key outputs that directly impact the priorities of the Group’s learning and development strategy. Raising the visibility of BIC’s high potentials has channeled the best talent into roles that drive the most value.

BIC’s remuneration policy is designed to recognize performance, rewarding team members with fair and competitive remuneration, in line with market conditions.

BIC’s coherent compensation and benefits policy is designed to attract, motivate and retain our talent.

The Company policy for all team members combines both market competitivity and internal equity. Internal equity is measured using a global classification system.

We use comprehensive salary survey data from specialized consultancy firms so our team members receive a total remuneration package in line with the market in which they work.

BIC ensures that all entities respect local legislation with regard to minimum salary levels as defined either by law or by collective bargaining agreements.

Gender pay equity is considered a priority across the Company, and specific attention is paid to establishing pay equity in areas of the organization where a gap is identified. During the annual salary review process, regional and business management teams are encouraged to pay particular attention to the topic.

Recognizing both individual and collective performance is an essential part of our total remuneration policy.

Short-term incentives exist in two forms:

• ●monthly or quarterly incentives for the sales force, based on both financial and non-financial criteria, which help drive profitable growth in all areas of the world with a motivated sales team,
• ●an annual short-term incentive plan for all non-sales, management level (cadre) team members across the world. Payout is based on collective financial criteria and individual performance objectives designed to drive achievement of the Horizon strategy. The financial objectives defined at Group level, and cascaded into the regions, are identical to those used to calculate the annual short-term incentive of the Chief Executive Officer and the Executive Committee members.

The long-term incentive plans, which all senior managers are eligible for, are designed with a three-year vesting period and ambitious objectives, driving the long-term success of the Company by focusing on free cash flow, innovation and sustainability.

Recognizing the contribution of all team members to the success of our Horizon transformation journey, in October 2021 the Board of Directors, based on the recommendation of the Management Team, granted five free shares to over 11,000 team members worldwide, giving them the opportunity to share in the value that will be created by the future success of the Company (Plan Sharing Horizon).

The free shares were delivered in October 2023, at the end of the agreed two-year vesting period, allowing recipients to become BIC shareholders.

• ●Health care and life insurance

• At BIC, health care and the protection that we provide our team members and their families is a priority. For this reason, in 2022, we conducted a worldwide audit of existing plans and coverage. The audit identified areas of improvement, and in 2023, we considered how to implement improvements over the 2023-2025 period.

• ●Well-being in the workplace

• The Company seeks to provide a collaborative workspace for its team members that is geared towards performance yet contributes to the overall well-being of our team members in the workplace.
• This orientation has led us, in certain countries, to sign agreements with employee representatives covering topics such as work-life balance, remote working, and other related topics.
• Around the world, the Company actively engages in preventive action plans around health and safety and well-being action plans, including workshops on preventing work-related illness and managing stress. We also ensure that government campaigns are actively relayed to our team members.

Some initiatives were relayed at the global level in 2023, with the aim of creating a regular calendar and raising the profile of well-being issues for all our team members. We published quarterly newsletters on our intranet website to communicate about all these initiatives and share ideas from all over the world.

For example, during International Women’s Day in France and Bulgaria, we held discussions and conferences on Unconscious Gender Bias and shared advice and inspiration on personal career growth and development.

International Day of Happiness was recognized in Bulgaria: a campaign encouraged team members to share their favorite positive thoughts, quotes, or songs.

In Brazil, weekly mindfulness activities are now available. Australia and New Zealand continued their three-year partnership with SmilingMile and we held awareness workshops in North America and many other countries.

On October 10, 2023, we launched World Mental Health Day initiatives in many countries. One example: BodyMark and BIC’s SWIM Employee Resource Group partnered with The Yellow Tulip Project (YTP) to start conversations about mental health with team members across North America. To support efforts to smash the stigma around mental health, Shelton team members came together at the office to plant a yellow tulip garden as a symbol of hope and community for years to come.

During Pink October, BIC in France supported breast cancer research. Many team members participated in the Odysséa race in Paris, and we collaborated with our health insurance partner on a webinar about preventing and detecting breast cancer.

We provided medical and mental health screening for team members of BIC East Africa, in partnership with ICAS, an international counselling service provider.

BIC is a truly global business, with a workforce reflecting the diverse backgrounds and experiences of the communities where its products are available worldwide.

As stated in the BIC Code of Conduct, the Group values diversity, equity and inclusion (DE&I) and does not tolerate discrimination or harassment based on grounds such as:

• ●age;
• ●religion;
• ●color;
• ●ethnicity;
• ●national origin;
• ●disability;
• ●sexual orientation;
• ●gender;
• ●gender identity;
• ●gender expression;
• ●marital status; or
• ●any other characteristic which is protected under local law.

The Group wants to create an environment in which employees, suppliers, business partners and its communities feel valued and respected. As an organization, BIC looks to be a positive change agent in the many communities where it operates across the globe.

At BIC, cultural and individual diversity is an essential part of team culture, which is why the Group strives to foster an inclusive environment for all. In its continued commitment to diversity, equity, and inclusion, BIC seeks to:

• ●take action to ensure that BIC teams reflect as closely as possible the diversity of the Group’s customers and consumers around the world;
• ●welcome team members, giving them a sense of responsibility through a culture of inclusion founded on responsible leadership and management practices; and
• ●encourage the diversity and dynamism of its teams as drivers for innovation and a key factor for its success.

The Diversity, Equity & Inclusion Credo, signed by the CEO and the CHRO in 2019, reinforces BIC’s commitment to Diversity, Equity, and Inclusion by acknowledging that blending different backgrounds, experiences, and perspectives in a collaborative environment where they are valued makes the organization stronger and better prepared for challenges.

As part of its Diversity, Equity & Inclusion strategy, BIC has made a number of declarations, including:

• ●signing the UN Standards of Conduct for Business “Tackling Discrimination against Lesbian, Gay, Bi, Trans, & Intersex People” (29);
• ●in January 2021, Gonzalve Bich, BIC’s CEO, joined the “CEO Action for Diversity and InclusionTM” (30), the largest CEO-driven business commitment of its kind. By taking this pledge, Gonzalve Bich is committing to take action to ensure the Company’s culture celebrates and welcomes diverse perspectives and experiences and encourages open conversations about DE&I; and
• ●leadership messaging and corporate social media/blog posting to recognize important DE&I-related calendar events, including Global Pride Month, International Women’s Day, Asian American and Pacific Islander Heritage Month, Hispanic Heritage Month, and more.

As part of our global DE&I strategy, we have set a series of strategic objectives and KPIs to measure progress in the areas of belonging, attraction, promotion and influence:

Belong: create a culture where all team members feel comfortable bringing their full selves to work. Notable achievements in 2023 include:

• ●the 2023 edition of BIC's yearly engagement survey that assesses various aspects of engagement, and incorporate employee feedback and experiences to shape its policies and programs. This year, we achieved an impressive 91% response rate. The evaluation of employee engagement showed a positive outcome at 79%, marking a four-point increase compared to the 2022 results and surpassing the market norm by five points. In terms of Inclusion, the assessment was favorable at 80%, consistent with 2022, and five points above the market norm. Overall, our team members express a sense of being treated with respect and feel comfortable expressing their ideas and opinions, even when they differ from others;

• ●continuing to promote the use of the Employee Resource Group toolkit to encourage team members to create networks of team members who share common characteristics and backgrounds. These groups advocate for themselves, and in addition to fostering their own professional development, are a valuable resource to BIC, providing information about their identities, undertaking community outreach, opening new networks for recruiting, and serving as a visible sign of BIC’s commitment to a diverse, equitable and inclusive workplace. As a result, five new employee-led resource groups (ERGs) are promoting local DEI initiatives in North America:

• ●Over 150 team members from the Allyship Program/ERGs helped deploy the Group’s DE&I strategy, by organizing local events to celebrate several diversity days such as Black History Month, International Women’s Day, Pride Month, Veterans Day and many others. Team members across the globe took part in local and global events, such as speakers series, panels, training, and more;
• ●hosting three-part Inclusive Leadership Series for all Level 4 and above team members. In the first workshop, “Conscious Inclusion”, the participants built a shared understanding of inclusive leadership, explored ways to lead teams toward conscious inclusion and to develop a greater sense of belonging and trust at BIC. The second workshop explored the role leaders play to effectively influence and establish an inclusive culture at BIC. The third and final workshop, focused on further building resilience as leaders, boosting optimism in teams and encouraging activism at BIC and beyond.

Attract: increase representation of women and other underrepresented minorities (as defined by country leadership teams). This work begins at entry level, through external recruitment and internal promotions. Notable projects in 2023 included:

• ●promoting BIC as an inclusive employer by showcasing successful female team members in relation to its Employer Brand and Employee Value Proposition. For instance, blog articles and social media highlights were published, and a video segment highlighting women in leadership was broadcast during the 2023 Annual General Meeting;
• ●mitigating bias when searching for recruitment sourcing initiatives on LinkedIn, by choosing to hide the names and pictures of potential candidates;
• ●launching a “Diversity at Work” training course to educate hiring managers and internal stakeholders about the importance of hiring diverse talents and on how to eliminate bias from recruitment processes;
• ●participating in McKinsey’s study on women in corporate America along with 276 organizations. This study looks at the number of men and women at all levels across the organization, and the flows in and out of these levels through promotions, hiring and attrition, as well as the organizations policies and practices. The qualitative and quantitative data is used to create goals for the organizations which took part in the study and help them understand where to invest their efforts to create a fair and equitable environment for all;
• ●as a result, 58% of all 2023 hires were female, a 2% increase on 2022.

Promote: striving to increase female representation does not stop at entry level; BIC intends to increase diversity in Director and above positions to 40% in 2027. Notable achievements in 2023 include:

• ●continuing to implement BIC’s Human Capital Management System, SuccessFactors, to improve talent identification and management processes, and facilitate access to the data needed to support these processes; 
• ●systematically submitting a gender-balanced list of candidates in Level 4 and above positions; and
• ●reaching 33% female representation in Level 4 and above leadership roles by continuing to attract and retain female talent.

Influence: improve visibility, demonstration and celebration of BIC’s commitment to DE&I externally. Notable achievements in 2023 include:

• ●continued participation in the “Break the Ceiling Touch the Sky" summit editions in New York (U.S.), India, and Dubai, which offered companies an opportunity to learn DE&I best practices and connect with women leaders from around the world;
• ●several of BIC’s female leaders were recognized by the House of Rose Professional as the “Most Inspirational Women in Leadership” in the US, Asia, Africa and the Middle East for their support of women across the industry and within their professional networks;
• ●additionally, our General Manager for the Middle East & Africa and our Group Commercial Officer were each featured on the House of Rose Professional’s “Break the Ceiling Touch the Sky” 2023 list of Male Champions for Gender Equality; and
• ●senior leaders got involved and spoke before the Network of Executive Women, Break the Ceiling Touch the Sky, Enactus, Girls Write Now and Life Project 4 Youth (LP4Y) Global Youth Inclusion Forum.

BIC strives to use all the means available to engage in dialogue with its team members. In this spirit, it sets up forums to listen to team members. To maintain team member engagement and remain attentive to their needs, the Group strives to cultivate high-quality social dialogue, either between management and the team members themselves, or through employee representatives and labor union representatives at unionized sites.

In every country where the Group has operations, it complies with all applicable collective agreements. In addition, as far as their resources permit, each subsidiary strives to improve working conditions by offering:

• ●wages above the legal minimums;
• ●superior team member benefits; and
• ●investments to improve the working environment.

The topics discussed in the negotiations are related either to local obligations or to the previously mentioned management points. For example, many mechanisms to promote health and safety in the workplace and new working conditions, like remote working, have been initiated through social dialogue.

The following table gives a few examples of such agreements.

The Group supports France’s national defense interests and the commitment made by its military reservists. In France, operational reservists serving in the military and national police are legally entitled to at least ten days’ annual leave for training and duties. BIC releases them for ten days on full pay to join their units.

[NFPS risk 6] BIC has identified risks related to corruption among its main CSR risks. The risk of corruption and unfair practices can lead to legal actions against the Group and have major consequences in terms of reputation and attractiveness. Assessing, mapping and managing this risk gives BIC an opportunity to further develop its culture of ethics within the Group. As required by French law, BIC also conducted two additional risk mappings:

• ●one cover anti-corruption processes, as required by French law 2016-1691 of December 9, 2016, also known as the Sapin II Law; and
• ●the other deals with the prevention and vigilance associated with risks related to the environment, fundamental rights and freedoms as well as health and safety, as required by French law 2017-399 of March 27, 2017, also known as the Duty of Vigilance Law, as further detailed in Chapter 2.

This document follows the methodological recommendations of the Global Reporting Initiative (GRI). The GRI indicators used here are included in the cross-reference table of ESG information on page  Cross-reference table of ESG information.

In accordance with Articles L. 225-37 et seq. and L. 22-10-9 and L. 22-10-10 of the French Commercial Code, this chapter deals with the conditions under which the work of the Board of Directors is prepared and organized, including the organizational principles that guarantee a balance of powers. It also describes the components of the remuneration of corporate officers, including the remuneration policy in accordance with the above-mentioned provisions of the French Commercial Code, as well as the transactions in BIC shares declared by corporate officers in 2023.

This chapter has been prepared with the support of the:

• ●Remuneration Committee;
• ●Nominations, Governance and Corporate Social Responsibility (CSR) Committee; and
• ●Audit Committee.

It includes the Corporate Governance Report referred to in Article L. 225-37 of the French Commercial Code. The Board of Directors approved it on February 19, 2024.

The Corporate Governance cross-reference table (page  Cross-reference table of the corporate governance report) indicates the sections of the Universal Registration Document corresponding to the sections of the Corporate Governance Report that are excluded from this chapter.

According to the “apply or explain” rule provided for in Article L. 22-10-10 of the French Commercial Code and Article 28.1 of the AFEP-MEDEF Corporate Governance Code, Société BIC refers to the provisions of the AFEP-MEDEF (1) Corporate Governance Code whose last version was updated on December 20, 2022.

Since its creation, the Company has been a limited liability company (société anonyme) with a Board of Directors. Its strong family shareholdership allows it to evolve and adapt to any new challenges and requirements alongside its stakeholders. The composition of the Board of Directors reflects this family heritage, through the representation of the family shareholding and the presence of Independent Directors in compliance with the principles of corporate governance.

The Group’s history is deeply rooted in an entrepreneurial spirit. This has led to inventive expansion into new categories and dynamic expansion into new regions. We consider entrepreneurship to be in our DNA. It is vitally important for the Board and the Chief Executive Officer to foster that spirit and keep it alive for future generations.

The Board works with the Chief Executive Officer to build a vision and a set of expectations and guidelines. This includes setting our growth aspirations, determining what lines of business we should be in, setting our margin expectations, and determining how to pursue our goals.

The Chief Executive Officer and his team construct the long-term strategy and annual plans to achieve these goals. In turn, the Board reviews these plans, challenges them, and ultimately approves them. Upon approval, the Board becomes jointly accountable with the Chief Executive Officer, for the execution of the Company’s long-term strategy.

The Purpose of BIC is to create high quality, safe, affordable, essential products trusted by everyone. Our vision is: “to bring simplicity and joy to everyday life”. Our Values are Integrity, Ingenuity, Responsibility, Sustainability, Simplicity and Teamwork.

The Board is also responsible for monitoring the performance of the Company. Establishing expectations and scope of activity is one of the most important Board functions. It is the Chief Executive Officer’s responsibility to provide the necessary information, analysis, and insight for the Board to effectively carry out its duties.

The information includes:

• ●macro-economic trends;
• ●competitive environment;
• ●new technologies;
• ●potential acquisitions;
• ●analyses of strengths, weaknesses, opportunities, and threats (so called “SWOT” analyses);
• ●ROI projections; and
• ●retrospective analyses.

Our behavior is at all times consistent with the values and the DNA of BIC: responsibility, simplicity, agility, entrepreneurship, anti-bureaucratic spirit, quick decision-making, long-term thinking, measured risk taking, respect of the strong family heritage and the Company’s Code of Conduct, belief in the Brand, product-focus, manufacturing excellence, low production costs, consistent high quality, solid balance sheet.

Since 2018, Chair of the Board and Chief Executive Officer are two separate functions. Gonzalve Bich holds the position of Chief Executive Officer since May 16, 2018. His mandate was renewed following the Annual Shareholders’ Meeting of May 18, 2022. Succeeding John Glen in May 2022, Nikos Koumettis was appointed by the Board as Non-Executive Chair on the same date.

The Chair of the Board is in charge of leading the Board and its Committees, as well as of its governance and of ensuring that they operate in accordance with their mission. The Chief Executive Officer oversees business operations and reports to the Board of Directors. The responsibilities of the Board of Directors, the Chair and the Chief Executive Officer are described in more detail in § 4.1.4.1 – Relationships between the Board and General Management.

The Executive Committee reports to the Chief Executive Officer. The complete organization chart of the Group’s Executive Committee is presented in § 4.1.1.4 – Executive Committee at the date of this Universal Registration Document.

When the Chairmanship of the Board and the CEO are two separate functions, the Board’s Internal Regulations (2)do not require the appointment of a Lead Director. Nevertheless, in the event of unity of these two roles, and when the Chair does not meet all the independence criteria recommended by the AFEP-MEDEF Corporate Governance Code, the Board may decide to appoint a Lead Director for the duration of the non-independent Chair’s term of office. The Lead Director is then selected among the Independent Directors, in accordance with Article 3.2 of the AFEP-MEDEF Corporate Governance Code.

The role and duties of the Lead Director are defined in Section 1, Article 1.1 “Composition of the Board of Directors” of the Company’s Internal Regulations, as amended by the Board of Directors on March 17, 2023. The Lead Director is responsible for ensuring the proper functioning of the governance bodies. This includes involvement in the development of the agenda for the Board of Directors, as well as participation in the meetings of the Board of Directors’ Committees, including those of which they are not a member. They strive to maintain adequate information for the Directors and play an active role in organizing Directors’ meetings. Furthermore, they implement the necessary diligence in identifying conflicts of interest and inform the Board of Directors of any identified conflicted situations.

As of the date of this Universal Registration Document, the roles of the Chair of the Board of Directors and Chief Executive Officer are separate, and the Chair of the Board, Nikos Koumettis, in an Independent Director. In this context, the Board of Directors does not consider it necessary to appoint a Lead Director.

The General Management of the Group is ensured, around the Chief Executive Officer, by a team of managers, each with a defined role and remits, and they are gathered within an Executive Committee.

This Committee meets regularly, thus playing a central role in the management of the Group. Its responsibilities are twofold: on one hand, the Executive Committee engages in discussions and makes recommendations to the Board of Directors; on the other hand, it oversees the implementation of strategies established by the latter. In this context, the Executive Committee monitors the progress of action plans, evaluates the performance of various operational entities, identifies growth opportunities, and assesses the inherent risks in the activities. Further information is provided in § 2.4.3.2 The Executive Committee. 

The Company considers that its practices are compliant with the recommendations of the AFEP-MEDEF Corporate Governance Code in all respects.

The Board of Directors follows the general guidelines, drawn up within the framework of the recommendations of the AFEP-MEDEF Corporate Governance Code, for the determination, review and implementation of its compensation policy. In accordance with the French Commercial Code (13), this section of the report of the Board of Directors details the remuneration and benefits provided to Corporate Officers for or during FY 2023, as well as the applicable remuneration policy.

At the 2023 Shareholders’ Meeting, Shareholders will be asked to vote on the following resolutions:

• ●approval of the information on the remuneration of Corporate Officers for 2023;
• ●approval of the remuneration of Gonzalve Bich, Chief Executive Officer, for 2023;
• ●approval of the remuneration policy for Executive Corporate Officers for FY 2024;
• ●approval of the remuneration of Nikos Koumettis, Chair of the Board for FY 2023;
• ●approval of the remuneration policy for the Chair of the Board for FY 2024;
• ●approval of the remuneration policy for Directors for FY 2024;
• ●approval of the envelope for the compensation to be allocated among members of the Board of Directors for 2024.

The remuneration policy for Corporate Officers is determined by the Board of Directors upon the recommendation of the Remuneration Committee and following the principles and criteria in the AFEP-MEDEF Code of Corporate Governance. The remuneration policy follows the Code in all aspects.

The Board of Directors ensures that the remuneration policy is directly aligned with the Company’s overall strategy and is in line with Shareholders’ interests to support the Company’s performance and competitiveness over the medium and long-term. Social and environmental issues related to the Company’s business are also taken into account.

The remuneration policy for Executive Corporate Officers of SOCIÉTÉ BIC is based on the same total rewards philosophy that applies to all BIC Group team members and the framework criteria set out in the Code of Corporate Governance. The policy is based on the principles of comprehensiveness, balance between the remuneration components to ensure pay for performance, comparability, consistency, clarity of the rules, and proportionality. 

The Chief Executive Officer is currently the only Executive Corporate Officer in activity, but the remuneration policy described in this document would apply to any future Executive Corporate Officer that could be nominated.

FY 2023 Net Sales increased by 1.3% at actual currencies, 3.5% on a comparative basis and 9.2% at constant currencies. All divisions contributed to the growth at constant currency. Q4 2023 net sales increased 15.9% at constant currency (including +13.5 points impact from Argentina) overall driven by double digit growth in Latin America and robust performance in Europe notably in the Blade Excellence division.

FY 2023 gross profit margin increased 2.4 points to 50.7%, favorably impacted by strong price/mix and manufacturing and procurement efficiencies. This was partially offset by input cost inflation (raw material and electricity costs), unfavorable fixed cost absorption and forex (mainly due to USD/MXN, USD/ARS, and EUR/TRY, while EUR/USD hedging was favorable), as well as negative mix from less contribution from US Lighter sales. 

FY 2023 adjusted EBIT margin reached 14.7%, versus 14.0% in FY 2022. This was a result of gross profit improvements which were partially offset by increased operating expenses and brand support investments. 

FY 2023 Adjusted EBIT was 333.1 million euros, a 6.2% increase versus prior year.

FY 2023 finance revenues/costs increase versus last year was mainly due to the 2022 fair value adjustment related to the Virtual Power Purchase Agreement in Greece. 2023 income from cash and cash equivalents also increased versus the previous period due to higher interest rates, especially on euro, on US dollar and on Argentinean peso. 

Net Income Group share stood at €226.5 million versus €198.6 million last year. 

FY 2023 effective tax rate was 27.6% vs. 28.4% for FY 2022.

At the end of December 2023, the Group’s Net Cash position stood at 385.4 million euros. 

FY 2023 Operating Cash flow was €469.2 million, fueled by solid business performance. The €27.4 million negative change in Working Capital was driven by a decrease in Inventory levels, more than offset by higher Trade Receivables and a decrease in Trade Payables.

FY 2023 Free Cash Flow before acquisitions and disposals was €248.7 million. The Net Cash position at the end of December was €385.4 million, after dividend payments and €116.2 million in share buybacks.

The Board of Directors of Société BIC proposes the distribution of dividends primarily based on:

• ●Group earnings;
• ●its investment policy;
• ●balance sheet strength; as well as
• ●comparisons with industry peers.

BIC does not foresee a material change in this dividend distribution policy.

At the Annual Shareholders’ Meeting on May 29, 2024, the Board of Directors will propose €2.85 of Ordinary Dividend per share for 2023 and €1.42 of Extraordinary Dividend per share. The Dividend pay-out ratio (calculated with the ordinary dividend) was 50% for 2022 and will be 50% for 2023.

The ordinary dividends paid or to be paid for the last three fiscal years are as follows:

Regarding industrial investments, BIC has split its manufacturing activities into two areas for several years:

• ●first, in continuous quality improvement for each production line, including ongoing investments in manufacturing processes and new technologies;
• ●second, in the specialization of focused production sites.

In 2006, it opened a distribution subsidiary in Turkey, and acquired PIMACO, Brazil’s leading manufacturer and distributor of adhesive labels.

In December 2008, BIC announced its intent to acquire Antalis Promotional Products entities (Sequana group). The acquisition was completed on March 11, 2009, with an agreement for a total enterprise value of 33.5 million euros. After the purchase of Antalis Promotional Products, in June 2009, the Group announced the acquisition of Norwood Promotional Products. The acquisition was completed on July 6, 2009.

On January 21, 2009, BIC and Cello announced they had signed a definitive agreement whereby the Group acquired 40% of the Cello Writing Instrument business for 7.9 billion Indian rupees. Under the agreement, BIC had a call option in 2013 to increase its stake to 55%. This agreement was partially completed on March 5, 2009, for 3.8 billion Indian rupees.

In April 2009, BIC launched a worldwide cost reduction plan in response to the market slowdown. This initiative negatively impacted the full year 2009 EBIT by 34.4 million euros. The impact on profit was partially offset by the negative goodwill from the acquisition of Antalis Promotional Products. The net impact was 24.1 million euros.

On November 30, 2011, the Group acquired the assets of Angstrom Power Incorporated, a company specializing in the development of portable fuel cell technology.

In February 2012, the Group acquired land for the construction of a writing instrument facility in the fast-growing African and Middle East region. Located in Tunisia (region of Bizerte). The total investment was 12 million euros.

In September 2013, the Group completed the acquisition of 40% of the final (7th) Stationery Cello Group entity for 3.7 billion Indian rupees (43.3 million euros) (11). On September 27, 2013, the Group announced it had exercised the call option on September 17 to increase its stake in the seven Cello Pens entities from 40% to 55% for 2.9 billion Indian rupees (35.2 million euros) (12).

In October 2013, BIC acquired land in Nantong, China (North of Shanghai) for the construction of a Lighter facility. The total investment is around 14 million euros.

In July 2014, BIC purchased shares to increase its stake from 55% to 75% in the seven Cello Pens entities for 4.3 billion Indian rupees (approximately 53 million euros) (13). This was as a result of the exercise by Cello Group of its put option in March 2014, allowing it to sell 20% of Cello Pens to the Group.

In October 2015, BIC presented an investment proposal intended to modernize its industrial facilities in the North of France (Pas-de-Calais). Planned for a five-year period, the project includes a 12 million euros investment to extend the production facility at Samer.

In December 2015, BIC increased its stake in Cello Pens to 100% for 5.4 billion Indian rupees (approximately 74 million euros) (14).

In October 2017, the Indian subsidiary BIC Cello acquired land and buildings for a new writing instrument facility in Vapi (Gujarat state). The total investment is around 28 million euros.

On December 31, 2018, BIC announced the transfer of the manufacturing facilities of HACO Industries Kenya Ltd. in Kenya and the distribution of Stationery, Lighters and Shavers in East Africa to BIC. This acquisition is in line with BIC’s continued growth strategy in Africa, one of the most promising markets for BIC® products worldwide.

On January 16, 2019, the Indian subsidiary BIC Cello inaugurated the new writing instrument facility in Vapi (Gujarat state).

On October 23, 2019, BIC completed the acquisition of Lucky Stationery in Nigeria (LSNL), Nigeria #1 Writing Instrument manufacturer. This acquisition is consistent with BIC’s continued growth strategy in Africa.

On July 1, 2020, BIC acquired Djeep. This acquisition aims to strengthen BIC’s position in the pocket lighters market and offers substantial growth opportunities in Europe and North America.

On December 15, 2020, BIC acquired Rocketbook, the leading smart and reusable notebook brand in the United States, entering the Digital Writing segment, a fast-growing market. 

On February 1, 2022, BIC completed the acquisition of Inkbox, the leading brand of high quality semi-permanent tattoos.

On August 2, 2022, BIC announced having completed the acquisition of Tattly a leading decal brand, diversifying BIC’s offering in the rapidly growing Skin Creative market.

On September 6, 2022, BIC completed the acquisition in France of AMI (Advanced Magnetic Interaction), strengthening BIC’s R&D capabilities in Digital Expression.