SPECIAL REPORT MANAUS - Bic decorated with the logo of these international summits. Experts,...

N°02//2012

THE BIC YEARLY MAGAZINE

SUSTAINABLE DEVELOPMENT BIC MORE RESPONSIBLE EVERY DAY

EXCLUSIVE INTERVIEWMeet Bruno Bich

and Mario Guevara

+ DESIGN SPORT BUZZ PERSPECTIVES BIC CULTURE TRAVEL

SPECIAL REPORT

MANAUSReport from the BIC factory in Amazonia, Brazil

SPORTHere comes the caravan!

+ DESIGN SPORT BUZZ PERSPECTIVES BIC CULTURE TRAVEL

1

Buzz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Meet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Bruno Bich and Mario Guevara The Chairman of the Board and CEO of BIC take a look back on an eventful year in a diffi cult economic context.

Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . 12Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14BIC® Culture . . . . . . . . . . . . . . . . . . . . 18

We’re All BIC KidsThey love their pens and pencils and they want to tell us about it.

Sport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

After staying away for 15 years, BIC is back! In the Tour de France 2011 caravan, an adventure that will be repeated in 2012.

Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Lights you likeBorn to design, BIC gives its lighters a whole new look.

International. . . . . . . . . . . . . . . . . . . . . 32Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36

Marketing. . . . . . . . . . . . . . . . . . . . . . . . .48Shavers gained market share on all continents and saw its net sales rise by 9.1% in 2011.

Perspectives . . . . . . . . . . . . . . . . . . . . .54BIC APP30 years young!Advertising and Promotional Products celebrates its 30th anniversary. BIC’s fourth category is innovating...

Sustainable Development . . . . . . . . . . . . . . . . . . . 57

BIC More Responsible EverydayBIC implements the second edition of its Sustainable Development barometer.

Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63Shareholders’ information . . . . . . . . . . . . . . . . . . . . . . .64Last Word . . . . . . . . . . . . . . . . . . . . . . . . 68

Contents

MANAUS Travel to Manaus in Brazil, in the heart of the Amazon, visit the BIC Amazônia plant.

BIC IS BACK

THE GAME

WHO GETS

WHAT ?

88

2525

3636 5757

3

Welcomeaboard!

The fi rst edition of BIC’tween us was a hit that readers found attractive, surprising and fun. BIC wants to continue the experience and this year we bring you the second edition in which we take a look at the 60th anniversary of the BIC® Cristal® ballpoint pen, the company’s much touted return in the caravan of the Tour de France, progress made in sustainable development and Corporate Social Responsibility, rewards and more. All told, 2011 was an eventful year for the Group. Because everybody uses BIC® products for diff erent things, BIC has taken a look around at diff erent consumer habits, given the lighter loving crowd something to set them apart, studied shaver users’ features… And how do YOU use your BIC® pen?We also take you on a journey to Manaus, Brazil, a country where the Group has been present since 1956. The editors give you an in depth look at what life is like for four employees in the BIC Amazônia plant and shows you around the city. A clear demonstration of BIC’s capacity to establish and develop its international activity. Fasten your seatbelts, it’s going to be an exciting ride!

editorialN°02

Bon voyage !The editorial team wishes you Bon voyage !

4

Buzz

DIVERSITY COLLECTIVE ART BY BICHow do you get people thinking about the richness that diversity brings to our societies? Through creativity! BIC approached the non-profit organization Art Prime which works to change people’s views on disabilities and promote skilled, talented disabled people through art. Working together with a painter from Art Prime, employees at the BIC headquarters in Clichy created a wall painting focusing on diversity.

ASIATHAILAND THINKS

BIG FOR ITS NEXT GENERATION

BIC Thailand launched a “Think BIG, Think BIC®!”

TV campaign and Facebook® page accompanied by an original street

advertising campaign. Its mission was to gain awareness of BIC with Thai

secondary school students. To do that, the local subsidiary found just the right

slogan: “Big Dreams Start from Writing.” The campaign was also adapted and

introduced in South Korea.

BIC snapshots from around the world

BEST OF 2011

www.facebook.com/thinkbic

230people collaborated on the wall art

5

SOLIDARITYBIC® CRISTAL® BRINGS TO LIFE THE ARTWORK OF DAVID DOWNESBIC UK supported British artist David Downes throughout the creation of an exceptional piece of art (100 x 145 cm) drawn for the most part with BIC® Cristal® pens and representing the St. Pancras station in London. The project was an initiative by the National Autistic Society (NAS) to help raise money for medical research. “With BIC® Cristal® pens, I can get all the effects and details I want to achieve,” explained the artist.

1.45 m2with a BIC® Cristal® pen

CULTURE SHEAFFER SHOWS OFF! In September 2011, the Sheaffer Pen Museum was opened in Fort Madison, Iowa, in the United States. More than a century of history is written there, beginning with the invention of W.A. Sheaffer’s unique design and patent in 1908. Fountain pens and other Sheaffer® brand writing instruments, both old and new, are included

in the collection. The museum captures the long-standing link of Sheaffer, Fort Madison and its people as well as the passion of everyone who has worked for the brand. Today, Sheaffer has an international appeal, in fact, it was with a Sheaffer Valor 9354 pen that the leaders of Europe signed the Accession Treaty of Croatia into the European Union in December 2011.

Expert know-how since

1908pays

WORLDBIC ® 4 COLOURS™ GETS IT ALL IN WRITING AT THE G20 AND THE G8BIC sponsors the French presidency of the G20 and the G8 meetings held in France in 2011, by offering participants a BIC® 4 Colours™ pen. For the occasion the pen was specially decorated with the logo of these international summits. Experts, journalists and heads of state and government wrote the history of tomorrow with a BIC® 4 Colours™ pen.

100%made in France

6

Buzz

SPORTBIC GLIDES OVER THE WAVESBIC sport is riding the Stand Up Paddle (SUP) wave and is making a name for itself as one of the leaders

in this new sport that is growing rapidly in the US. In France, Eric Terrien, BIC racer won

the “Nautic Challenge,” a SUP event organized on the River Seine in Paris.

As for windsurfing, the World Championship of BIC Techno 293 OD, the official board for enthusiasts under 17 years of age, brought together 146 young windsurfers from

26 different countries in the amazing San Francisco Bay.Lastly, the O’Pen BIC 2011 dinghy racing

world championship included 140 young people on Lake Maggiore in Switzerland.

26countries participating

29euros*

BIC® PHONE NEW AND IMPROVED 2011 VERSION In October, a new version of the BIC® phone was launched in France and Spain, and now includes a camera and radio in an eye-catching design available in your choice of four colors… still for a mere €29. The BIC® phone is now even easier to find at tobacconists, newspaper stands, service stations and supermarkets. In addition to the 30 minutes of calls included when you purchase it, you’ll receive 100 sms/mms free of charge the first time you recharge your minutes!

ACQUISITIONCHARGING AHEAD WITH FUEL CELL DEVELOPMENTSince 2003, BIC has been developing the technology for fuel cell cartridges, which are connected to a fuel cell device and replaced once the fuel is depleted. This work was complemented with the acquisition of the Canadian Company, Angstrom Power Incorporated, specialist in research and development of fuel cell devices. BIC expects to bring to market a portable fuel cell device and fuel cell cartridge for electronic devices such as mobile phones, tablets and electronic games, in the next two to five years.

* Suggested retail price

7

ECUADORBIC ECUADOR SPONSORS BYRON LÓPEZ Group BIC’s subsidiary in Ecuador has worked with wheelchair racing Para-Olympic champion Byron López since 2010. The sponsorship provides and maintains the athlete’s sporting equipment and allows him to participate in various national competitions. One of his most recent competitions was the 15 km race around the country’s capital, Quito, which is renowned as a particularly difficult course. Byron López was the winner of this competition, bringing him to a total of 11 wins for the year!

15 kmrace

NEWA HOT NEW ACQUISITIONBIC Corporation acquired Sologear LLC, maker of a unique solid ethanol technology and the technology’s first product, FlameDisk®, a portable, convenient charcoal-alternative for grilling. BIC® FlameDisk® complements BIC®’s multi-purpose lighter business and represents a growth opportunity for the U.S. in the barbecue and grilling categories.

FACEBOOK® BIC FLICKERSBIC USA launched the “BIC Flickers” Facebook® page. In just a few months the page has garnered over 230,000 fans! The page allows BIC® lighter fans to share their passion and stories about their favorite BIC® lighters, and enables them to view and provide feedback on the latest lighter products and promotions.www.facebook.com/bicfl ickers

230,000deFacebook fans

Meet…

When times are hard, consumers focus on proven values. It is the satisfaction of customers over a long period of time which creates the strength of a brand like BIC®.Mario Guevara

8

was excellent and now we are beginning to benefi t from the growth in Eastern Europe. Shavers did well, as did Lighters, despite competition from Asian products. In North America, the stationery market was highly competitive. We made progress with distribution for lighters and the 4 moveable blade and hybrid shavers showed excellent performances. In developing markets, our

How do you explain such positive results for 2011?

Mario Guevara : This performance is the result of the serious work we have been doing over several years, of our deep understanding of our markets and our constant search for ways to improve. It confi rms the solid foundation of our business model – off er consumers quality products at the right price and that meet their needs or their desires. Our business has also benefi ted from the dynamic of developing markets, and despite the crisis, we performed well in developed countries.

Around the world, which countries and products performed best?

M.G : In Europe, we gained market share in Stationery. The back-to-school season

stationery activity saw more than satisfactory sales, both in Latin America and in Africa and the Middle East. We earned market share in Latin America where shavers had strong growth. Finally, our lighter sales nearly doubled in Japan after the implementation of the ISO 9994 and child resistant safety standards.

Would you say that shavers had a good year?

M.G : Yes, as far as shavers are concerned, we successfully reinvented the category by making quite a few investments over the past ten years, and this has made the diff erence. More than 60% of our sales come from products that didn’t even exist in 2002.

2011 was another record-breaking year with a 3.1% increase in net sales on a comparative basis and a 14.7% increase in net income. Bruno Bich and

Mario Guevara look on an eventful year in an economic context that was unevenly balanced between developed and developing markets. They also take the time

to talk about the BIC people and their capacity for innovation

INTERVIEW BY CHRISTOPHE VIDAL

EXCLUSIVE INTERVIEWBruno Bich, Chairman of the Board

and Mario Guevara, CEO

In the United States, BIC® is the only brand that increased its market share for one-piece shavers. Mario Guevara

We have a great brand, very good products always at the right price, creative teams with extensive experience and in-depth knowledge of our markets - those are fantastic assets.Bruno Bich

Meet…

19.9%NORMALIZED IFO MARGINNET SALES

€1,824.1 M

Countries with developing markets represent 32% of your net sales, what is the outlook like, more specifi cally in Asia?

Bruno Bich : Our goal is to realize more than 40% of our net sales from developing markets. Middle East and Africa zone will play an important role in reaching this goal. We are going to build a new Stationery plant in Tunisia that will allow us to better meet the consumer demands in the region. As far as Asia is concerned, the continent as a whole is very complex, but we will continue to invest to develop our brand’s name over the long term.

On this topic, where does your court case with the Indian group Cello Pens stand?

B.B : The International Arbitration Tribunal constituted in Singapore decided in our favor concerning the complete application of the defi nitive agreements signed on January 21, 2009 with the Cello company.

It’s been a somewhat disappointing year for BIC APP. How would you sum that up?

M.G : Sales dropped by 10%. We were able to maintain our market share and our position

The economic context will continue to be diffi cult over the next few years, but we will continue to grow in the face of adversity.Bruno Bich

as leader for writing instruments and calendars. However, we lost market shares in our “hard goods” activities following some issues in customer service which have since been resolved. More than 90% of BIC APP sales were made in Europe and North America, in countries where there is not a lot of growth. 2011 was a transitional year as we integrated Norwood and Antalis. In 2012, we will focus our attention on customer service and product innovation.

NET

€

in Ein ca lotranNorwe cusinn

10

€362.4 MNORMALIZED INCOME FROM OPERATIONS

What quality to you value most in another person? Mario Guevara : Honesty.Bruno Bich : Courage.

What did you get most excited about in 2011? M.G : The power of social networks, which are a source of absolute transparency of a kind never before seen and which have toppled dictatorships.

B.B : The particularly positive attitude I’ve seen in our teams even when faced with problems and a weak economic climate.

MORE FROM BRUNO BICH AND MARIO GUEVARA

In November 2011, you announced your acquisition of the Canadian company Angstrom Power Incorporated that specializes in developing portable fuel cells. Where has that led to today?

B.B : There is a growing consumer demand for mobile power sources for smartphones, tablets etc. Since 2003, we have been working with partners including the French Atomic Energy and Alternative Energy Commission (CEA, Commissariat à l’énergie atomique et aux énergies alternatives) on the research and development of portable fuel cell cartridges. Now, with the specialized skills of Angstrom in fuel cell devices, our goal is to off er a complete power source solution in the next two to fi ve years.

In terms of social and environmental corporate responsibility, what were some of the highlights for 2011?

M.G : We have updated and renewed our Sustainable Development Barometer for the next three years. We launched a “Social Business” initiative in Bangladesh together with CARE. The BIC Diversity Charter was rolled out around the world, accompanied by various actions in all of our subsidiaries to meet the needs specifi c to the culture in diff erent countries.

What message do you have for shareholders and employees?

B.B : We have a great brand, very good products always at the right price, creative teams with extensive experience and in-depth knowledge of our markets - those are fantastic assets. Our economic model is healthy and, with our solid fi nancial situation, we can face the future with confi dence. We can increasingly invest in developing countries and in innovation, while increasing shareholder dividends.

11

For 2011, the Board of Directors has proposed an ordinary dividend of 2,20 euros as well as an exceptional dividend of 1,80 euro per share. We also decided to give an exceptional bonus to all employees around the world who are not eligible for our free performance share plans. The economic context will continue to be diffi cult over the next few years, but we will continue to grow in the face of adversity.

Corporate Governance

BIC’

TEA

MOPERATIONS

Chief Executive Offi cer Lighters

Europe North America

Legal Human Resources

Stationery and Shavers

Mario GUEVARA François BICH

Billy SALHA Chris MILLS

Marie-Aimée BICH-DUFOUR François EYSSETTE

Ed DOUGHERTY

12

Bruno BICHChairmanMario GUEVARADirector and CEOFrançois BICHDirector and Executive Vice PresidentMarie-Pauline CHANDON-MOËTDirectorJohn GLENDirector�(1)

Gilles PÉLISSONDirector�(1)

Marie-Henriette POINSOTDirectorFrédéric ROSTANDDirector�(1)

Pierre VAREILLEDirector�(1)

Société MBD(2)

Director

BOARD OF DIRECTORS

DELOITTE & ASSOCIÉSStatutory AuditorsGRANT THORNTONStatutory AuditorsBEASSubstitute AuditorsINSTITUT DE GESTION ET D’EXPERTISE COMPTABLESubstitute Auditors

AUDITORS

(1) Independent. (2) Bich family holding company,

represented by Édouard Bich.

Gilles PÉLISSON (Chairman) (1)

Marie-Henriette POINSOTFrédéric ROSTAND (1)

COMPENSATION AND NOMINATION COMMITTEE

John GLEN (Chairman) (1)

Édouard BICH (Société MBD) (2)

Pierre VAREILLE (1)

AUDIT COMMITTEE

■ Mario GUEVARAChief Executive Offi cer

■ François BICHExecutive Vice President

■ Marie-Aimée BICH-DUFOURExecutive Vice President

OFFICERS

Latin America, Oceania, Asia, Middle East and Africa

Finance

Stationery Advertising and Promotional Products

Edgar HERNANDEZ

Jim DIPIETRO

Benoît MAROTTE Nicolas PAILLOT

13

14

Figures

It all adds up!

NET SALES 2011 by geography

NET SALES (in million euros) CAPITAL EXPENDITURES (in million euros)

as reported - 0.4% at constant currencies + 2.1%

on a comparative basis + 3.1%

Developing markets (Latin America, Oceania, Asia, Middle East and Africa)

32%North America

40%Europe

28%

1,824.1

20112010

1,831.5 892011

632010

15

32%28%18%Shavers

Lighters

Stationery

5%Other products

NET SALES 2011 by category

Europe / North America and Oceania / Latin America / Middle East, Africa and Asia

2011

9,1982,4862,5953,661 456

WORKFORCE by geography

2010

9,3132,4522,7143,650 497

17%Advertising and promotional products

16

Figures

NORMALIZED INCOME FROM OPERATIONS (in million euros)

GROUP NET INCOME (in million euros)

2010

207.5

2011

237.9 + 14.7% as reported

20112010

Group

362.4314.9

199.9174.0

Lighters

Shavers

59.843.6 Other products

- 5.2- 6.4

Advertising and promotional

products

24.333.4

Stationery

83.570.3

17

NORMALIZED IFO MARGIN (in percent)

FREE CASH FLOW AFTER ACQUISITIONS AND DISPOSALS (in million euros)

2011

108.9

2010

222.4

20112010

Group

19.917.2

Lighters

39.136.2

Shavers

18.214.2Advertising

and promotional products

8.19.2

Stationery

14.212.1

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BIC® Culture

The 2011 study by BIC Canada revealed that writing by hand stimulated the brain and encouraged learning. That’s good news in this increasingly digital age where BIC

continues to make a major commitment to education. This year, the Group also focused on innovation while continuing its commitment to give you “More for your money … Always!”

id you know that writing by hand stimulates the brain, helps you retain information and develops

fine motor skills? That’s what Dr. Steve Graham, professor of education at Vanderbilt University in Nashville, Tennessee in the United States tells us as he took part in a study carried out by BIC Canada about the advantages of writing by hand. The study, which had more than 1,000 participants, showed that 83% recal led

information better when they had written it down by hand rather than typing on a keyboard. This study

combined with BIC USA’s Quality Comes in Writing Program signifies BIC’s commitment to raising broad awareness about the importance of writing by hand, especially for children. “For years we have been active in the field of education, providing teaching kits and developing educational programs,” reminds us Benoît Marotte, General Manager for Stationery.

INNOVATION, SOLUTIONSBIC off ers a vast range of stationery products, the majority of which are produced in 13 specially dedicated factories. In Marne-la-Vallée, France, 2 million pens are produced every 24 hours. The Group is constantly innovating its products, like with the

BIC, CONNECTED ACROSS ALL

CONTINENTSWith BIC® Mark-it™

and BIC Pen Pals, BIC is conversing socially

in North America. In Thailand and South

Korea, BIC launched a TV and Facebook® campaign

entitled “Think BIG, Think BIC®!” The Sheaff er® brand

is also on Facebook®, Twitter® and Foursquare®

to give its fans and customers around the world

real-time updates about the brand and access to customer service.

BIC Stationery: underlining the importance of

For years we have been active in the fi eld of education…

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BIC® EasyGlide™ ink, which makes writing 35% smoother than with its classic inks. This technology is used in the BIC® Cristal® 1.6/Bold, BIC® ReAction® and BIC® Velocity® Bold pens, not to mention BIC® Atlantis® with fun colored inks. Thanks to innovations like this, sales of BIC® ballpoint pens have had another record year of strong growth.

And the Group still offers the best quality products at the right price. In support of this, in 2009,

BIC launched the “More for your money... Always!” as a brand promise campaign in the United States. It has been successfully extended around the world, with particular success in France where for the second year the EconoBIC operation was rolled out at back-to-school time in major supermarkets and stationery stores, around the concept “the more customers buy, the more they get.” It’s a concept that’s also being exported to Argentina and Belgium.

25 millionBIC® stationery products are chosen every day by consumers around the world

BIC always clever, and close to you

“Againts the baccalauréat leaks: the pen that doesn’t leak”: in France, BIC kept up with the news around the French exam and made a unique press announcement, illustrated with the BIC® Cristal® pen.

In South Africa, social issues were at the forefront with the slogan “Choose and change a future.”

As for Mexico, their marker line teamed up with Mexican artist Amparin Serrano for the colorful “Marking™ Distroller” campaign.

BIC® FOR HERA RANGE DESIGNED JUST FOR WOMEN

“We had noted that unlike in many other categories, writing instruments

are asexual, and after many studies, we decided to create the fi rst stationery

line entirely dedicated to women,” explains Benoît Marotte.

And so BIC® For Her was born, created for women who appreciate

comfort and style. The range gathers ball pens and gel pens featuring

a sleek silhouette, unique colors and textures, and fashionable jeweled

accents. All of that without losing sight of the “right price” positioning

that is BIC’s strength!

The range has thus far enjoyed success particularly with American

consumers, and BIC is working on expanding the line.

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BIC® Culture

My BIC® Cristal® penis kind of a good-luck charm for me.Maria-Luisa, 56 years old, superstitious.

That’s MY BIC® highlighter!Marc, 44 years old, not very generous.

I write in my journal with my BIC® 2 Colours™ penClaire, 11 years old, a romantic.

My BIC® Cristal® Fine pen goes everywhere with me, to all my meetings.Yuko, 34 years old, contrary .

WE’RE ALL

21

I think maybe my favorite is BIC® 4 Colours TM.Pablo, 7 years old, indecisive.

My BIC® Matic mechanical pencil is always perfectly sharpened.Olga, 19 years old, PRACTICAL.

To draw animals.Charlotte, 51/2 years old, budding artistbudding artist.

I use my BIC® pen as a blowgun.Yann, 13 years old, class clown.

An Evolution™ pencil made from recycled material is better for the environmentFranz, 17 years old, ecological.

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France

The most commonly sold ballpoint pen in the world celebrated its 60th anniversary with its users throughout the world with all kinds of events. This iconic pen is part of the collective memory of billions of consumers everywhere who have a fondness for the legendary pen. The BIC® Cristal® pen has even entered the permanent collections of the Museum of Modern Art in New York and

the Centre Georges Pompidou in Paris.

BIC® CRISTAL®Diamond anniversary the world around

A limited edition of 250 bouquets made out of 60 BIC® Cristal® pens was created and distributed to a few privileged customers and journalists.

Italy

BIC Italy launched a campaign with the slogan “Never Ending Pen.” A special website was created to celebrate the 60th birthday and it received two awards recognizing the top quality of the site! A competition for customers and for schoolchildren was launched along with street marketing events.

France

Tsé & Tsé designers Catherine Lévy and Sigolène Prébois

designed a decorative screen using 600 BIC® Cristal® ballpoint pens.

Their piece was displayed at an exceptional event at the Cité de

l’architecture et du patrimoine in Paris.

The site www.littlebicworld.com was specially developed for this anniversary year and there was even a competition to write a jingle in honor of BIC® Cristal®.

Spain

The region opened a competition for BIC employee teams for the 60th anniversary of the BIC® Cristal® pen. The goal

was to create the most creative event that reaches consumers. BIC employee teams from Tunisia and Ivory Coast were the winners.

Africa

BIC® Culture

23

France

United Kingdom

Romania

BIC designed and printed a fun and educational

calendar that traces the history of the pen.

BIC held an event for its clients with an exhibition at the Museum of Brands in London to showcase the works created with BIC® Cristal® by artists such as Herbert Hinteregger, M. Lucas Muñoz, Maison Martin Margiela, Zoé Stanton and Annette Carey.

Argentina

Europe

BIC launched “The BIC Wall Experience”, a chance for internet

users to take part in the biggest collective project on the web at

www.thebicwall.com

BIC organized an event to benefi t the non-profi t organization l’enfant@l’hôpital for its customers at the Cité de l’architecture et du Patrimoine in Paris. Four works of art made with BIC® Cristal® pens were on display. BIC also launched a competition among students in art schools, technical training institutes, universities and conservatories.

Last August, BIC traced its history in an eight page supplement

in the national paper “Clarín,” 400,000 copies

sold! Belgium

BIC rolled out the campaign for the “BIC Wall” with

posters, Facebook®, Twitter®, advertisements in free papers

and events organized in Brussels, Bruges and Hasselt,

where passers-by wrote more than 6,000 messages!

BIC Switzerland created a limited edition BIC® Cristal® pen with the cap and plug made of silver,

presented in a luxury case. It was off ered as a gift to some customers and winners of promotional events.

Switzerland

25

Sport

Last summer from July 2 to 24, BIC joined the Tour de France Publicity Caravan and criss-crossed the country. Back and better than ever as part of the world’s

third largest sporting event!

1952, 1953, 1955 BIC participated in the Tour de France caravan.

1967 - 1974 BIC took part in the race with its own professional cycling team that included racers such as Jacques Anquetil, Lucien Aimar, Jan Janssen and Luis Ocana, winner of the Tour in 1973.

1996 BIC is again part of the publicity caravan.

2011 We’re back

2012 And we’ll keep coming back!

On the road with the Tour...

2

19

11 2

Nostal’BIC The BIC caravan, a history that goes way back...

Here comes the caravan!

12 million spectators

250,000 BIC free items given out.

40 people to lead the campaign

BIC BACK ON THE ROAD WITH THE TOUR BIC put in place a major operation to meet the public – three cars and a flat-bed truck with a sound system, custom-painted with the brand’s colors and the iconic “BIC® boy.” An electric vehicle was also positioned at the finish line. “Thanks to everything we put in place, we were able to communicate about the EconoBIC back-to-school operation and our new products, like the BIC® Flex 3- or 4-moveable blade shavers,” says Marie Saglio, BIC France Manager. Hundreds of thousands of free items and coupons were handed out all along the course. “The Tour de France caravan gave us a chance to get closer to our consumers.”

The BIC® brand is a favorite for many of the Tour de France spectators. BIC® products have been present throughout their lives and participate in the development of their children,” Marie Saglio explains. And here’s a piece of good news – BIC will again be part of the caravan in 2012!

26

you like

Design

BIC® 2011 LIGHTER COLLECTIONS

BIC has always made safety and quality its watchwords for lighters, even exceeding the international safety standard ISO 9994 requirements. BIC Group created hundreds of decorated lighters in 2011 to suit the personal tastes of consumers. Combining safety and exclusive collections, that’s BIC’s speciality! Here’s a close-up look at four diff erent collections.

27

BIC® COMICS LIGHTER SERIES Welcome to the comics! Bang! Zaaap! Ouch! Pow pow! For comics fans and anyone who loves a fl ashy lighter, BIC® has created a super collection of lighters in the Mini Electronic format, for fun, imaginative looks in eight diff erent styles. This series is ready to be shown off right alongside your comic book collection.

YOU LIGHT/YOU LIKE SKATE BOARDING, COMIC BOOKS...

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By Simon Bernheim The French artist created six designs especially for BIC ® lighters. Following in the line of his research on language and writing, these “Signs” go all the way around the lighter with no beginning and no end, like a never-ending letter. An intriguing lighter you will turn around and around in your hands. A piece of art by a great artist.

Design

YOU LIGHT/YOU LIKE Contemporary art, bright colors

30

Miss BIC®, the fi rst lighter for her! We all know the BIC ® pens and shavers made especially for women and now it's time there were lighters just for them too! Miss BIC ® is the leading brand of women’s lighters with its slim, feminine shape. For every woman there’s a “Miss BIC ® must-have” with a choice from among six styles centered on natural jewelry and accessories, messages, fashion and glamour, all for the fairer sex. You won’t want to spend another day without one!

Design

YOU LIGHT/YOU LIKE Wedge heels, Valentine’s Day, sparkly nail polish…

SAFETY: ISO 9994BIC® lighters meet or exceed the specifi cations of the international safety standards ISO 9994, which determine the safety specifi cations for a lighter, such as the maximum fl ame height, resistance to elevated

temperatures, resistance to falls from a certain height, etc. In countries that correctly apply lighter safety standards, the number of lighters that don’t meet the standards have been reduced, as well as the number of accidents.

31

Safety

More than

50 checksthat's what every BIC® pocket lighter undergoes before it goes to the market.

73% of the lighter models sold in Europe and tested by Prosafe do not meet ISO 9994 safety standards. All BIC® lighters tested met the standards.

QUALITY AND SAFETYWITH NO EXCEPTIONS

HIGH TECHNOLOGY IN INDUSTRIAL TOOLS AND PROCESSESIn 2011, the sales volumes for BIC® lighters continued to grow in all the key regions where the Group is present. In fact, every day six million BIC® lighters are purchased. That success has a lot to do with the safety and the quality of the products made in-house; they undergo the strictest quality controls, which is not the case for all competitor's models. In Europe 73% of lighter models that have been tested were found not to conform by Prosafe**. BIC will never give in on this fi ght with non conforming lighters, and makes it known to clients and consumers that BIC® lighters guarantee a high level of safety and quality.

ORIGINAL DESIGNS AND LOTS OF THEM In 2011, BIC was particularly active in creating new designs, with several hundred limited edition series designs and cases like the Mini Metal and the BIC’IN. The range of multi-purpose lighters has also been extended with the BIC® Megalighter™ Flex which boasts a flexible steel wand so you can easily light barbecues, candles and more. So many products, all of them part of the success of the segment in 2011.

BIC is the n°1 worldwide in branded pocket lighters with an increase of 8.6%* in net sales in 2011. The Group has always made safety and quality the most important feature of its lighters.

Up to 3,000lights for a BIC® Maxi lighter

(up to twice more than other fl int lighters of the same size)

BIC® Megalighter™ Since the year 2000, the Group has sold multi-purpose lighters for lighting candles, gas stoves, barbecues and more. The latest in that line is the BIC® Megalighter™ Flex. It provides 750 lights, a clear view of the gas level, a fl exible wand and a retractable hook.

* On a comparative basis** Organisation that includes various European monitoring authorities

32

International

Around the world The Group is present in more than 160 countries and its net sales for 2011 were up 3.1% on a comparative basis. Despite the continuing crisis, mature market countries held up well and

developing markets gave solid performances in all product categories.

products chosen everyday* around the world.

46 M• 25 million stationery products• 6 million lighters• 10 million shavers• 5 million advertising

and promotional products

points of sale3.2 M

ADVERTISING ANDPROMOTIONAL PRODUCTS

N°2 Europe / North America

LIGHTERS

N°1 in the world for branded pocket lighters

SHAVERS(1)

N°2 Europe / North America /Latin America(1) on the non-refi llable shaver market

BIC POSITION IN ITS MARKETS

STATIONERY

N°1 Europe / Africa / Latin America

N°2North America / Oceania

* Base 220

33

in 2011

customers67,300

of BIC® products are manufactured by BIC,

in its own factories

79%employees

9,198

LIGHTERSSAFETY FIRSTThe “Our quality, your safety” program helped earn market share, and communication campaigns were launched for consumers, distributors and government authorities.

STATIONERYGOOD GRADES FOR BACK TO SCHOOL Stationery gained market share and had a very positive back-to-school period in most countries, especially in France. Classic BIC® products were popular everywhere and in these diffi cult times when purchasing power is really being squeezed, the EconoBIC program attracted lots of customers

€728.0 M NET SALES 2011 _40% OF THE GROUP'S SALES _+ 0.4% ON A COMPARATIVE BASIS

34

EUROPE

Europe held up well despite a diffi cult economic situation, particularly in southern Europe. BIC continued to invest in Eastern and Central Europe, both very promising markets.

Holding up well, and even more

SHAVERSGrowth performanceThis segment performed very well thanks to the new 3- and 4-blade technology of BIC's Flex shavers and the high quality shave they provide. BIC also strengthened its distribution in Russia and Ukraine and launched forcefull advertising campaigns there.

International

In a soft economy, with cautious consumer spending, BIC continued to grow by reassuring the consumer that BIC provides "More for your money…Always!"

BIC “More for your money… Always”

LIGHTERS

Quality, Creativity and TrustThis category saw strong growth thanks to our continued quality and safety program as well as the dynamic BIC has created around its creatively decorated lighters, with limited editions ranging from Playboy to Rock Bands. Continued

growth in distribution and consumer awareness drove Multi-Purpose lighter sales.

STATIONERYCREATING A BUZZ FOR WRITINGSales were boosted by focusing our marketing eff orts on products featuring our BIC® Easy-Glide System™ ink technology including the BIC Atlantis® and the new BIC® 4 Her product range. U.S. plans included an Easy-Glide sampling and trial program at shopping centers and consumer events across the country, national print advertising, a Facebook® page and Facebook® advertising. In Canada, marketing eff orts focused on an impactful national television ad campaign and national public relations tour featuring an educational professional promoting the benefi ts of handwriting.

€517.7 M NET SALES 2011 _ 28% OF THE GROUP'S SALES _ - 0.4% ON A COMPARATIVE BASIS

NORTH AMERICA

SHAVERSStill on the Winner’s Podium In the United States, BIC® was the only brand to gain market share, reinforcing its number two position in the non-refi llable shaver segment. The BIC® Flex4®, Flex 3, Hybrid Advance™ and the Soleil® range led the company's solid performance for the last two years.

35

BIC ADVERTISING The brand makes its mark In China, Korea, Malaysia, Thailand and Singapore, BIC invested in multiple advertising campaigns such as the “Think BIG, Think BIC®,” which targeted students. The shop-in-shop, promotional concept for luxury Sheaff er® writing instruments was also a success.

LIGHTERS

Safety standardsIn Japan, sales nearly doubled as the ISO 9994 and child-resistant safety standards were implemented. BIC® lighters were the fi rst to be certifi ed and approved for sale in convenience store chains. They are distributed in more than 25,000 shops.

€578.4 M NET SALES 2011 _ 32% OF THE GROUP'S SALES _ + 10.5% ON A COMPARATIVE BASIS

Fine looking futureBIC is capitalizing on its long-standing presence in Africa, the Middle East and Latin America, and now it’s riding the wave of fast growth in these markets. A close connection with customers and consumers, an adapted range of products and eff ective distribution are BIC’s strengths in these regions.

STATIONERYBIC®, HOLDING STRONG AT NUMBER 1 This segment did remarkably well with strong growth in markers, coloring and correction segments, which were boosted by major advertising campaigns.

SHAVERS

Strong performance across the boardThe advertising campaign, “Homem bem feito,” for BIC® Comfort 3 in Brazil was a huge success and the company increased its number of points of sale on the continent. In Argentina, this range of 3-blade shavers got its boost from the “Lo de siempre pide cambio” campaign.

LATIN AMERICA

ASIA

DEVELOPING MARKETS

PARTNERSHIPBIC IN THE FIELDIn New Zealand, BIC teamed up with the All Blacks during the 2011 rugby world event. Shaving and stationery products were stamped with an “offi cial license” seal.

OCEANIA

MIDDLE EAST AND

AFRICA

STATIONERYMORE COMMITTED EVERY YEARBIC® Cristal® is

not the only one! BIC expanded its range with the 4 Colours™ family and Tipp-Ex® correction products. BIC also set up programs to donate stationery products to schools: one million pens were distributed in South Africa.

SHAVERSDistribution network strengthenedDouble edge blades and 1-blade shavers continued to perform well. Growth in the segment was strong thanks to the BIC® 1 Lady shaver's successful launch in Africa and the multi-blade models, BIC® Flex 3 and Flex 4 in South Africa.

3636

Travel

MANAUS Special report from the BIC Amazônia plant

ARTICLE BY CHRISTOPHE VIDAL

Developing markets are an integral part of BIC’s development strategy, and from its very beginning, the company’s goal has been to be a global

presence for everyone, everywhere. These markets are constantly changing and today show large growth, and that is certainly the case for Latin America.

It has long been a market for BIC; its fi rst subsidiary was formed in Brazil in 1956, only six years after the company itself started in Clichy, France. BIC Amazônia,

located in Manaus, is the only plant in the world to manufacture three of the Company’s product categories on a single site.

37

MANAUS SPECIAL REPORT FROM THE BIC AMAZÔNIA PLANT

BIC GROUP, A PIONEER IN LATIN AMERICAGetting to Manaus is always an adventure. The city is located in the middle of the Amazon forest, nearly 2,500 km (or 1,500 miles) from Brazil’s other major cities. You can reach it by boat or by airplane, just as you could back in 1956, when BIC fi rst came to Brazil. In June of that year, Marcel Bich set foot in the country like a true pioneer. Four years later, construction of the fi rst plant in São Paulo was completed and the first delivery of BIC® Cristal® pens quickly won over Brazilians. BIC increased its production, developed its distribution network and began investing in advertising campaigns. The Group’s expansion across Brazil had begun. While keeping its plant in São Paulo to produce Cristal® ballpoint pens, in 1973 BIC decided to set up in the free trade zone* in Manaus by acquiring Tecnocério, a lighter fl int manufacturer, to start lighter production.

BIC AMAZÔNIA PROVIDES PRODUCTS TO ALL OF LATIN AMERICA Development started in the region around Manaus in the late 1960s. In 1973, the Group launched production of the BIC® Maxi lighter. Two years later, Tecnocério was moved to the current site and the plant has grown constantly since then, now covering more than 40,000 sq.m. In 2001, Tecnocério was renamed BIC Amazônia and just one year later it began manufacturing all of BIC’s production in Brazil (from stationery items to lighters and shavers). It now supplies all of Latin America as well as other markets.

* Nearly 1000 national and international companies work in the Manaus free-trade zone.

The BIC plant is a reference within the Manaus Industrial Center: reliability, quality, respect for the environment and for people

In 1961, the BIC® Cristal® pen was manufactured in São Paulo on machines designed and build in France

Plant size:● Land 91,000 sq.m.

● Factory 43,000 sq.m.

20 billion products manufactured since 1973

FIGURES FOR BIC AMAZÔNIA

98%of the production is for the Latin

American market

5,000people make their living directly and indirectly from the plant’s activity

CERTIFICATIONS ISO 9001 / ISO 14001 /

OHSAS 18001 / SA 8000

580 collaborateurs3

categories of products manufactured

650 employees

MEN 66% WOMEN 34%

1 billion products manufactured every year

More than

470 M PENS150 M PENCILS

210 M LIGHTERS

325 M SHAVERS

1956BIC arrives in Brazil

1961 First factory in São Paulo begins production

1973 Lighter manufacturing begins in Manaus

2002 Manufacturing for all products centralized in Manaus

38

Travel

Employees play a key role in improving the production process

Manaus

Rio de Janeiro

São Paulo

BIC Amazônia exports its products to

13 countries in Latin America

We are the only BIC plant in the world that produces all three categories on one site.

The BIC Amazônia plant and other BIC production centers all follow the same best practices

To provide consumers with the safest, highest-quality products, BIC Amazônia is constantly improving its production process and increasing quality controls.

A group of

50people, dedicated to quality

QUALITY CONTROL

8,759hours of training were

provided for BIC Amazônia employees

in 2011

50separate automatic quality

checks are performed during the assembly of a BIC® lighter

PRODUCTS

BIC Amazônia’ssuccess storiesThe BIC® Maxi fl int lighter was one of the fi rst things to come off the production line and go straight into the hands of happy consumers in 1974. Later, in 2001, BIC Amazônia launched the production of the wood-free BIC® Evolution™ graphite pencil, which was a hit all across Latin America. There is also the fi ve versions of the three-blade BIC® Comfort 3® shaver, 3 for men and 2 for women, available in two-packs to respond to local product demand. BIC Amazônia has already produced more than 20 billion BIC® products.

t

IC®

fi ve ®

ble in

“Manaus is like an island,” says Carlo Cavadini, Manager of the BIC Amazônia plant. Every shipment of goods to or from Manaus takes about 12 days. Upon arriving, the impression is a striking one. “We are the only BIC plant in the world that produces the three categories, stationery, lighters and shavers, on one site. Our products are manufactured following the same procedures and undergoing the same quality controls as in any other BIC plant,” explains Cavadini.

BIC Amazônia

xiaxBBICICCICBICCBICC M®M®M®M®MM M Maaaa

3®BIC BIC® fort 3CoCCCCCCCCCCCComfomfomfomfomfommfmfmfomfomfomfomfomfomfomfomffoo foomfmfo foo ooooooooooo

BIC® Evvolution™utuuuuutuutututuutututututututuututut

39


Ermerson, Darielma, and more. Meet four employees at BIC Amazônia who talked to us about what they’ve

done in life as well as what they’ve done at Manaus. More than just a job, each one of them has

a close relationship with BIC. The ties are all the stronger because no one here has forgotten that

the Company managed to withstand the ups and downs of the Brazilian economy over decades. BIC has made

a home for itself in the heart of the jungle...

MEET...

Darielma da Mota Barroso

PEN ASSEMBLY MANAGER

Eudiracildo de Souza Monteiro

PRODUCTION SUPERVISOR, LIGHTER PLASTIC INJECTION DEPARTMENT

MauroJorge Sampaio

PRODUCTION MANAGERLIGHTERS

Ermerson Alencar dos SantosSHAVER QUALITY INSPECTOR

4040

Travel

I keep studying to become more specialized.

FAVORITE PRODUCT BIC® Cristal®

What is your job?Darielma da Mota Barroso: I’ve been working at BIC for more than 14 years. I started out as a machine operator, then moved on to manufacturing assistant and then production leader. There are real opportunities for promotion in the company. In the short term I want to become a process engineer, and my long-term goal is to be part of the plant’s management team.

Tell us about Manaus… D. M. B: Like a lot of people, we came here for a better life, and we found it. I was able to study. I’m now an engineer with a degree from the University of the State of Amazonas. I earned my degree thanks to BIC, as I could follow the courses while adapting my work schedule. Manaus has changed a lot of things about my life.

How do you organize your time? D. M. B: I wake up at 5 am. I get to the plant before 7, check in with production, set the schedules and plan a production meeting with my team. Then I take care of administrative duties, checking bills, scheduling vacations, etc. It’s a very nice work environment. After work, I go for a run and then take care of my daughters. I’m a member of the company club and I am involved in the community service associations. On Saturdays, I study English and fi nd time for my personal activities. Sundays I spend with my family.

PEN ASSEMBLY MANAGER

Darielma da Mota Barroso37 years old, married with two children

14 yearswith BIC

for

4141


PRODUCTION SUPERVISOR, LIGHTER PLASTIC INJECTION DEPARTMENT

What is your job? Eudiracildo de Souza Monteiro:I joined BIC in 1996 as an expert worker, then I was made plastic injection leader in lighters and today I’m production supervisor. A friend introduced me to the company. I really like my job. Unlike other companies, BIC gave me the opportunity to discover a profession, work with a team and grow in my work. And here, we have a safe work environment, following ISO standards. I’m a member of the Emergency Crew, which is an important responsibility. I head up accident prevention in diff erent departments. I’m also an in-house auditor for our ISO 9001, ISO 14001 and OHSAS 18001 standards.

Tell us about Manaus and about your life outside of BIC.E. S. M: I came here when I was 18 years old. I like this city and the atmosphere even if the transportation system is still not very reliable. Manaus has changed a lot, especially with the opening of the bridge over the Rio Negro, which connects the urban island of Manaus to Iranduba, the continental portion of Brazil. Before, we used to take a ferry.

Eudiracildo de Souza Monteiro40 years old, married

I want to be a part of growth in our company.

FAVORITE PRODUCT BIC® Maxi

for

with BIC

16 years

4242

Travel

The basic principle of a lighter is simple, but it’s actually a complex product…

What is your job?Mauro Jorge Sampaio: I’ve worked at BIC for 15 years. I started as a safety at work technician, then I got my degree as a mechanical engineer and in 2000, I was promoted to production/processes engineer for lighters. BIC gave me the chance to get an MBA, as well as the chance to study Spanish and French. I’ve always found lighters interesting. They’re products that seem simple and safe, but it takes high-tech tools to make them. My fi rst job in the morning is to control the volume produced, identify any problems and fi nd solutions together with the team. Twice a year, a technician and a team come from France to Manaus to show us the latest technology and share information with us;

it’s an enriching experience and we learn a lot.

Tell us about Manaus and about your life outside of BIC. M. J. S: I came to Manaus when I was nine. This city has all the necessary infrastructure for education and work, but you have to know how to seize opportunities. Being isolated is both an advantage and a disadvantage. Going out of Manaus is hard and expensive but then, it’s fairly comfortable living here, its quiet and safe. Although Manaus is a big city, it has a small town quality of life.

PRODUCTION MANAGER LIGHTERS

Mauro Jorge Sampaio37 years old, married, two children

15 yearsfor

with BIC

FAVORITE PRODUCT BIC® Maxi

4343


SHAVER QUALITY INSPECTOR

What is your job? Ermerson Alencar dos Santos: My job is to do quality control on the Comfort 2 and Comfort 3® shavers produced. I hunt down imperfections. I worked at fi ve other companies before I joined BIC, so I can tell what’s diff erent about it. I’ve been in my position here at BIC for three and a half years and there’s room to move up from here. My friends told me that about this place and it turns out they were right! I quickly noticed the quality of the management approach since the SA 8000 standard on corporate responsibility has been deployed; it helps optimize working conditions. Working here means respect and

benefi ts; that’s really motivating. In 2011, I got to take part in several trainings to boost my knowledge of the fi eld.

Tell us about Manaus and about your life outside of BIC. E. A. S: I was born here. I have my friends from when I was a kid, but then I’ve also made friends at BIC. The city is very welcoming; we hope to host the World Cup in soccer. We’re one of the 12 cities in Brazil that have been selected. I’m a big fan. I’m involved in associations and I do some theatre as well as some dance.

Ermerson Alencar dos Santos28 years old, married, one child

3½ yearswith BIC

for

My job is to hunt down imperfections.

FAVORITE PRODUCT BIC® Comfort 3®

44

Travel

The only diff erence is the packaging, which is adapted to the population’s needs. Here, shavers are sold in packs of two, rather than larger pack sizes like in the United States.

A SUCCESSFUL INTEGRATIONAfter a long period of instability, in 2011 Brazil’s growth reached 3.5%. In this context, BIC Amazônia reaped the fruits of its commitment. “We have been making signifi cant investments for the last 20 years now and BIC Brasil has

Packaging: in Brazil, shavers are sold in two-packs rather than in packs of twenty ��

44

CERTIFICATIONS ISO 9001 / ISO 14001 /

OHSAS 18000 / SA 8000

BIC Amazônia,a frontrunnerBIC Amazônia was the fi rst

BIC production site to get engaged in a certifi cation

approach. “In the 1990s, the local government wanted the free trade zone of Manaus to

become a leading international site. All the businesses had

to commit to getting certain certifi cations. We began

gradually applying the process to quality, environmental issues, health and safety

and then more recently to corporate social responsibility

with the SA 8000 standard,” explains Carlo Cavadini.

In addition to reducing water and energy consumption and

waste management, the BIC sustainable development

program is also adapting to the local needs of Amazônia,

particularly with the education component. From 2004

to 2008 the “Educa BIC” program gave employees the

opportunity to fi nish their basic education. Today, the

company has set up the “Escola de Manufactura” program

to strengthen employees’ technical skills. BIC Amazônia is also committed to improving

the environmental and social situation for its neighbors and its employees by taking part in community service and charity operations, cleaning the banks

of the Amazon River, organizing activities for kids and collecting

money and food for families in need..

The same quality standards are applied as in the Group’s other plants.

45


45

experienced a double digit growth average for the last eight years. These results are coherent with BIC’s increased development in South America,” adds Mario Guevara, CEO of BIC. BIC Amazônia is a perfect example of the Company’s capacity to expand internationally. “Over the past fi fty years, we have faced difficult times in Brazil, but we have always decided to stay because we had an experienced management team which we trusted,” explains Bruno Bich, Chairman of the Board. “In these hard times, we created strong bonds with our employees, customers and consumers.” Because of Manaus’s geographic isolation, BIC Amazônia has a major impact on the local communities. “Our employees are proud to work in the plant, it’s like a second family,” Carlo Cavadini stresses. “Because employees are working 44 hours a week, the teams have space to wind down through the use of soccer fields, game rooms with table tennis, libraries, and break rooms.” The Brazilian teams have a particular dynamic and that certainly has played a role in the growth we see at BIC Amazônia.

� like in the US

BIC Amazônia has been ISO 9001 certifi ed since 1997

FOCUS ON BIC IN BRAZIL

Brazil has more than 910,000 points of sale* and BIC® products are available in more than half of them. That represents 85% of the total distribution in the country. In the last year, there has been a concentration in the market with major players acquiring super market chains and a series of merger-buyouts in drugstores. The idea of self-service sales, cash and carry, is developing too, as are convenience stores. In the last two years, BIC Brasil SA has worked to constantly improve its distribution. For stationery, it’s strengthening its network and creating a loyalty program called BIC Club. For shavers and lighters, partnerships with special distributors have been strengthened.

(*) Source Nielsen.

46

The Teatro Amazonas, the cultural heart of the city

The waters from two rivers

fl ow side by side without mixing

Take a look at The Teatro Amazonas

constructed in the 19th century during the wealthy period

of rubber export.

Adolpho Ducke Botanical Gardens, the largest garden in the world, in a 100 sq. km

ecological reserve with a vast number of plant

and animal species.

“The dark waters of the Rio Negro and the beige waters

of the Rio Solimões meet” When these rivers join, they

form the Amazon River. For a stretch of 6 km, the waters from the two rivers fl ow side by side

without mixing. The water level of the river rises and falls 15m

every six months.

Seeing another side of ManausDid you know that Manaus is also the largest city in Amazonia?

It is a bustling, modern city that welcomes tourists from around the world who come in search of extraordinary fl ora and fauna. It’s the jumping off point for expeditions

into the Amazon rainforest, which in Brazil alone covers an area seven times the size of France. It constitutes the planet’s largest oxygen reserve as well as

the largest biodiversity reserve, with more than a million species of plants and animals. A real ecosystem.

Manaus’s fl oating port

The Rio Negro bridge connects the urban island of Manaus to the rest of the continent

MANAUS BY THE NUMBERS

● 11,401 sq. km.

● 2 million inhabitants

● Capital of the State of Amazonas, in the north west of Brazil

Travel MANAUS SPECIAL REPORT FROM THE BIC AMAZÔNIA PLANT IN BRAZIL

Another BIC success story! In 2011, the Group launched six new models of shavers that combine high performance, quality and good design, all at the right price.

These new products were well received by consumers in all of the countries where they were launched, making this a very good year for Shavers.

SHAVERS

48

In 2011, although the uncertainty of the economic situation and continuing

crisis made things diffi cult, the shaver segment held up well and gained market share on all continents,” said Ed Dougherty, in charge of the Group's Shaver category. “We put six new, high-quality products on the market at the right price.” Among those six, there’s the BIC® Flex, non-refillable range of men’s shavers with the latest moveable blade technology. This shaver delivers comfort, precision and a smooth shave through its independent blades, each individually spring mounted. “Five years of research and 120,000 hours of work went into perfecting this new blade,” Ed Dougherty informs us.

SHAVING: BEAUTY OR FUNCTIONAL?BIC always wants to know just what users are really looking for. “We can tell “rational” expectations from emotional expectations,” explains Ed Dougherty. In the first case, the consumer is expecting a shave without nicks or irritation, that is comfortable, precise, eff ective and respects his sensitive skin, all for a comfortable price. In the second case, those expectations have more to do with personal ideals related to the image that the product carries, its design, its color and the promise that it delivers to consumers. Ed Dougherty adds: “depending on the maturity of the country, the level of expectations is different.

But whether shaving is seen as something to do with beauty or as a purely functional act, we seek to meet the different consumer expectations with our wide range of products.”

PACKAGING: KNOWING HOW TO ADAPT TO A SPECIFIC COUNTRY’S PARTICULARITIESIn recent years BIC has also thought about how to reduce the amount of raw material that goes into its shavers in order to reduce the cost of its products while keeping an ergonomic, elegant, original design. In 2011, the company managed to do just that for BIC® Miss Soleil® /Simply Soleil® and BIC® Comfort® 3

Marketing

6new products all

with moveable blades for 2011

LUBRICATING STRIP WITH ALOE VERA AND VITAMIN E

RUBBER GUARD BAR

4 INDEPENDENT SPRING-MOUNTED MOVEABLE BLADES

SPRINGS

49

“MOVEABLE BLADES:” A PRECISE SHAVE THAT’S PERFECTLY COMFORTABLEBIC® 3- and 4- moveable blade shavers are on the cutting age of technology and largely responsible for the growth in this segment. The spring-mounted blades can move independently from one another to maintain the optimum contact with skin; they follow the curves of the face, thereby reducing nicks and irritations. In 2011, BIC continued to expand its range with six new models. Advanced technology that is always the “right price” for a perfect, comfortable shave.

Advance™ by optimizing the handle construction. The Group continues to innovate on all fronts, developing and manufacturing shavers that make life easier, while also respecting the environment. BIC launched BIC® Easy / Hybrid Advance™ for men as well as BIC® Soleil® Easy for women, in a package that includes just one handle for six replaceable

razor blade heads! An innovative, practical concept for long-lasting shaving. Depending on the country and the purchasing power, BIC adapts its packaging. In Nigeria the single-blade BIC® shaver is sold singly, while in Brazil BIC® Comfort 3® is sold in two-packs. And as always, they come at the best price with the same quality for the world over.

Five years of research and 120,000 hours of work went into perfecting this new blade.

50

Marketing

Can you match each person from around the world with their

favorite BIC® shaver?

A ladies’ man, sensitive skin, seeking styley, 3-blade razor, eff ective but gentle.”

He loves surfi ng for the slip-sliding sensation and he wants the good things in life – a super high-tech shaver for a super price.”

Simple and ergonomically perfect for legs, a stylish design and feminine colors to decorate the bathroom.”

Brazilian girls just go crazy for them. Comfortable, fun shavers just made for tropical teens like us.”

A lady with sensitive skin who likes a smooth gentle shave. Lubricating strip and 4-blades are a must.”

STUDENTYann

FRANCE SINGERTeresaBRAZIL HOUSEWIFE

CindyUSA SURFER

JohnAUSTRALIA

HIGH SCHOOL STUDENTAgnetha

SWEDEN

WHO CARL BIC® 3 / GIULIA BIC® PURE 3® / AURÉLIE BIC® SOLEIL® EASY/ JUAN BIC® COMFORT 3 BLACK NIGHT / DAVE BIC® HYBRID ADVANCE™

51

Infl exible. A simple tool at a great price. That’s code for 3-blade.”

Because less packaging can be fun! She loves things that are all-in-one.”

Ecological activist. He drives a hybrid car, eats organic and requires a close and smooth shave.”

Bellissima! Nothing stands in her way, not a single hair thanks to BIC® performance. Simple, colorful.”

Attractive, night-owl, aesthete, he likes his comfort and he looks out for his skin… it’s so fragile.”

STUDENTAurélie FRANCE

COMPUTER PROGRAMMER Carl

SOUTH AFRICA YOUNG PROFESSIONAL

DaveCANADA TANGO

DANCERJuan

ARGENTINA FLORISTGiulia

ITALY

GE

TSWHAT ?

YANN BIC® FLEX 3 / TERESA BIC® COMFORT TEENS / JOHN BIC® FLEX 4 / CINDY BIC® SOLEIL® BELLA™ / AGNETHA BIC® SOLEIL® /

52

Marketing

In both Europe and North America BIC continued to grow the business successfully with new products featuring the latest innovative moveable blade technology (4-blade BIC® Comfort 4 and BIC® Flex 4 for men and BIC® Soleil® Bella™ for women). In Europe demand for 3-blade classic shavers (particularly the BIC® 3 and Pure 3® ranges) continued to be strong, as it was for the new BIC® Flex 3. In the United States, where BIC® was the only brand to gain market share, growth was led by strong performances in 3-blade shavers, such as the BIC® Soleil® range for women and the innovative BIC® Hybrid Advance™ .

In developing markets, sales reached two-digit growth. In Latin America good performance continued thanks to the entire range of BIC® products (single, 2- and particularly 3-blade shavers). “For these countries, our strategy is to adapt our products to location-specific needs. This kind of

This kind of development requires a lot of work with distribution networks.

100 DAYS OF SUNNY MOMENTS

In the United States, BIC executed a major promotional

program for the BIC® Soleil® shaver line. The 100 Days of Sunny Moments promotion began in May 2011, and for

100 days consumers had the chance to win prizes and learn

more about the BIC® Soleil® brand via a special website,

cross country tour and outdoor and print advertising.

REVVING UP SHAVER SALES!

BIC USA's creative custom built Flex4 Chopper promotion was

a major success generating multinational TV exposure on the TV show, American

Chopper: Senior vs. Junior and was a hit at consumer and major customer events across the USA.

good year for shavers

2011 A very

SHAVERSNET SALES ON THE RISE

+�2.4%

2009

+�9.1%

2011

+�7.6%

2010

development requires a lot of work with distribution networks which are extremely fragmented in some areas. As an example, Pakistan totals more than 265,000 points of sale compared to 70,000 in France,” points out Peter Van Den Broeck, General Manager Middle East and Africa.

On a comparative basis

Ce nouveau présentoir de rasoirs aux États-Unis enthousiasme les consommateurs.

53

BIC® FLEX 3 The smoothest champion ever

BIC got creative with the BIC® Flex Experience for launching the new

moveable blade men’s BIC® Flex 3 shaver. A spot was developed for YouTube with

a viral short fi lm that turns into a video game using movement detectors. Here’s the story:

after shaving with a BIC® Flex 3, a human curling champ slides on his stomach

to reach the target marked on the ice. After the video plays, it turns into a video

game. The internet viewer’s webcam detects its body movements and

the viewer becomes a human curling sweeper. The video had over

2.5 million views since it was put online in April 2011. And the

experience continues on Facebook®.

Search for Human Curling on YouTube

NEW CAMPAIGNS IN DEVELOPING MARKETS

In 2011, to go with the launch of the BIC® 3 shaver in Pakistan, BIC created a 360° communication campaign – billboards in major cities, internet with both Facebook® and Twitter®, information at points of sale. Not to mention a TV campaign in Iran and a movable advertising in Cameroon.

over 2.5million views *

Closer to you: local teams, listening and ready to serve their customers

BIC adapts its strategy to the needs of consumers and customers in each region. BIC's distribution network

and points of sale are varied, and the Company serves retailers of all sizes. This requires the need for strong

local market expertise. The BIC team adapts the off er according to local

market development, maturity, purchase power and consumer behavior. Having a strong understanding of the local

market, BIC creates in-store events that meet the local needs while promoting

the quality of BIC® products, thus enhancing the reputation of BIC® shavers.

* Figures to end of December 2011

54

BIC APP 30 YEARS YOUNG!

Perspectives

During 2011 our objective was to complete the integration of Antalis

P ro m o t i o n a l P ro d u c t s a n d Norwood Promotional Products enabling the Company to offer our customers a clear vision of our activity focused around t w o i n t e r n a t i o n a l b ra n d s : BIC® Graphic with writ ing instruments and Norwood™ with a general offer of advertising and promotional products ,” explains Nicolas Paillot , in charge of Promotional Products activity. Today the Group is number two in the United States and in Europe. “Advertising and promotional products are one of the most effective means of advertising,” Mario Guevara, CEO of BIC reminds us. “In 2011, sales progressed very diff erently within

BIC APP from one sector to another (stationery, calendars and hard goods); we focused on fi nishing the integration plan launched in 2010 and on streamlining and renewing our product off er.”

STRONG PRODUCT BRANDS BIC APP now offers products to its customers under several brand names: BIC®, Sheaffer®, BIC® Select, Sticky Notes™ (stationery), Atchison™ (bags), RCC Koozie™ (drinkware), Jaffa® (awards) and Triumph® (calendars). “We also launched a new brand, Norwood Pacific Solutions™ and with it we can manufacture made-to-measure products (in particular USB flash drives), customized in Asia that we then can distribute internationally at very competitive prices,”, says Nicolas Paillot.

In 2011, in a diffi cult economy, BIC APP has worked to complete the integration of Antalis Promotional Products and Norwood Promotional

Products. Today, BIC’s fourth category is committed to creating new, innovative services. A closer look.

ADVERTISING AND PROMOTIONAL PRODUCTS

Atchison™, RCC Koozie™, Jaff a®, Triumph®

BIC®, Sheaff er®, BIC® Select, Sticky Notes™

55

Best-sellers

The most widely used promotional product, Atchison™ bags come in a wide variety

of colors and exclusive designs.

ATCHISON™ BAG

Every piece is a unique work of art of hand-crafted glass.

The concept dates back to the 19th century; manufactured

in Sleepy Eye, Minnesota in the United States, Triumph®

promotional calendars continue to attract all types of professionals.

TRIUMPH®

CLIC STIC™

BALLPOINT PEN

In 2012, it celebrates its 25th anniversary in

the North American market. It is the most popular

retractable pen in the promotional products industry.

Koozie® is the leader in can coolers and insulated bags

that have top-quality water tight construction.

KOOZIE™

CAN COOLERS

CALENDAR

JAFFA®

PARTNERSHIP AWARD

56

Perspectives

PROPOSING INNOVATIVE SERVICESAfter the initial integration phase, BIC APP is concentrating on product innovation (some 50 new concepts have already been developed in 2011), boosting customer satisfaction by offering new internet related services, and on developing new distribution channels. “The goal is to win back market share by working on innovative products,” Nicolas Paillot stresses.

THIRTY YEARS ALREADY! BIC APP’s activity is part of the Group’s plan for sustainable development. That’s why it is included in the new Sustainable Development Barometer for 2011-2013. This year, the plant in Clearwater, Florida (molding, assembly, imprinting) was certifi ed ISO 14001. BIC APP off ers a range of Ecolutions® products named Goingreen® (bags, pens, sticky notes). 2011 was also a year to mark other anniversaries – 10 years for BIC® Media Clic® the best seller for BIC Graphic in Europe, 15 years for BIC® Diamente™ in Mexico and 30 years for the BIC® Round Stic™.

FIVE MILLION PROMOTIONAL PRODUCTS DISTRIBUTED EVERY DAY Today BIC APP is a leader in North America and Europe and present in Latin America, Australia, Africa and Asia (through its sourcing activities). Its 34,000 distributors deliver five million BIC® APP promotional products throughout the world every day. This activity

represents 17% of the Group’s sales. Promotional products still represent a major potential for growth in mature countries and over the longer term in developing countries.

HIGH QUALITY CUSTOMER

SERVICEBIC APP has reorganized

its customer service department to meet the

unique needs of each continent's customer base.

In Europe, Latin America and Oceania, multilingual teams make it possible for

customers to speak their native language. In North

America, as part of the integration of the three sites, the customer service process has been streamlined so that

dedicated teams ensure personal assistance for the

largest distributors.Providing a clear vision of our activityfocused around twobrands – BIC® Graphic and Norwood™.

North American centers of manufacturing excellence Norwood and BIC Graphic has reorganized its manufacturing operation to create three Centers of Excellence where BIC continues to invest in upgrading imprint technology, warehousing and infrastructure.Red Wing, Minnesota, is home to the Hard Goods (bags, drinkware, etc.) operation and houses the far majority of the North American inventory. This facility also off ers the widest choice of decorating techniques with nearly 20 imprinting and decoration methods - from the simplest one-color pad print to intricate embroidery to laser etching and 3-D imaging. Red Wing processes over 1,300 orders per day.

3 U.S. centers of excellence

Clearwater Florida

Red Wing Minnesota Sleepy Eye Minnesota

57

In 2004, the Group launched its Sustainable Development program and since 2008 managed by the BIC Barometer

that tracks 10 non-fi nancial goals. Three years later, the company put in place the second-edition Barometer (2011-2013) to mark its continued

commitment to sustainable development.

Sustainable Development

Today, all the categories have really taken the process on board.

At the end of 2010, BIC fully reached four of the goals included in the barometer – measuring the environmental performance of its products, reducing the factories' GreenHouse Gas (GHG) emissions, training employees and being committed in its local communities. In early 2011, the second-edition barometer was launched with 10 new goals to meet (see diagram pages 58 and 59), goals that are ambitious but realistic, and most of all will make a diff erence. “Today, thanks to this barometer, all the categories have really taken the process on board,” notes Christine Desbois, Director of Sustainable Development.

What we accomplished in 2011Continued expanding the off er of BIC® responsible products. Launched the fi rst writing instrument recycling program in Europe.Evaluated suppliers according the Environmental, Social and Governance criteria (ESG). Set up multi-discipline innovation sites for writing instruments. Launched a Social Business initiative in Bangladesh. Shared the Group’s Charter of Diversity with all employees. Consulted employees for the Sustainable Development Program. Integrated Advertising and Promotional Products in the social audit program.

1

2

3

4

5

6

7

8

BICMORE RESPONSIBLE EVERY DAY

58


Second edition

PRODUCTS

SOCIAL

The BIC Sustainable Development Barometer is a concrete sign of the company’s commitment. The second edition has just been launched with ten new goals to meet for 2011-2013.

INDUSTRY

90% of BIC® products* will have been eco-measured in 2013.

4/10

1.5/10

10/10 3/10

100% of BIC factories will have Environmental and Health & Safety management systems in 2013.

80% of the employees will work in ISO 14001 certifi ed factories in 2013.

100% of factories (including contract manufacturers) will have signed the BIC Group Code of Conduct, been audited (for APP, this only applies in high risk countries) and monitored on a regular schedule in 2013.

In 2013, the Group's accident incidence and severity rates will be reduced by 5%

20112013BIC SUSTAINABLE

DEVELOPMENT BAROMETER

* Excluding BIC APP (Advertising and Promotional Products)

You can fi nd a complete version of the Barometer on the Internet site, www.bicworld.com in the 2011 Sustainable Development Report.

GLOBAL BAROMETER: AIM 10/10The global score is the average

of the 10 scores.

6/10 Dec. 201310/10

Jan. 2011 0/10

59

50% of BIC® products* will have at least one environmental benefi t in 2013.

In 2013, the average weight of the packaging per product unit will be reduced by 2%

4,5/10 0/10

10/10

10/10 10/10

In 2013, energy consumption in BIC factories will be reduced by 3% water consumption will be reduced by 3% and production of non-recycled* waste will be reduced by 1%

In 2013, GHG emissions will be reduced by 4%and reduction of GHG emissions will be a key criterion for at least 75% of the Group’s calls for tenders for transport operations*.

80% of employees will have received at least one training in 2013.

In 2013, contribution toward communities will be more than 0.5% of pre-tax profi t.

6.5/10

60


PROUD TO BE A PART OF A COMMITTED COMPANYBIC regularly asks its employees how they view the company with a survey about commitment and a survey on how they have adopted the company’s values. In November 2011, BIC also consulted 5,500 of its employees on their perception of the sustainable development in the BIC Group. “We learned that among the employees who answered the survey, 85% feel that the issue of sustainable development concerns them. 94% deem the BIC Sustainable Development Program very important for the Company,” says Christine Desbois.

BIC IN THE BIGGEST SUSTAINABLE DEVELOPMENT INDEXESIn 2011 BIC kept its place in the biggest sustainable development indexes, the FTSE4 Good Europe, ASPI Eurozone®, Ethibel Excellence Index Europe and the Gaia Index while also being included in the STOXX Global ESG.

BANGLADESH

BIC AND CARE TEAM UP

IN A SOCIAL BUSINESS PROGRAM

Since May 2011, BIC joined in CARE’s “Rural Sales

Program” that helps women living in isolated, rural areas

of Bangladesh get out of poverty by developing their own small businesses selling

door-to-door everyday consumer items. 900 women, known as aparajitas (“those who never give up”) now sell BIC® shavers. This program

develops the entrepreneurial spirit and provides these

women with an income. It gives them the means to

overcome social isolation, as well as feeling of pride and a new role in their community.

94% of employees deem the BIC Sustainable Development Program very important for the Company.

BIC evaluates its suppliers In January 2011, in order to optimize responsible purchasing, BIC launched a pilot program evaluating 81 of its plastic suppliers. For those evaluations, BIC looked to the specialist Ecovadis to analyze suppliers on environmental, social, ethical and governance criteria. Of the 70% of suppliers who participated, 94% received a positive evaluation. BIC is now going to encourage suppliers to pursue an ongoing improvement approach.

94%of plastic suppliers received a positive

evaluation

RESPONSIBLE PURCHASING

61

BIC Charter of Diversity adopted throughout the world

BIC is convinced that diversity is one of the key factors for its development, and the Group focuses its action on gender representation, people with disabilities, seniors and minorities. The BIC Charter of Diversity signed in 2011 reflects the principles of non-discrimination and diversity promotion, which are shared by all Group's sites. An awareness raising process was rolled out and since 2011, managers have been given diversity training. The company has also launched a “Diversity Month” and encourages local awareness-raising actions on the theme; at company headquarters in France, employees collaborated on a wall painting on the subject in cooperation with the non-profit Art Prime, while in North America employees from different ethnic backgrounds organized meals and developed a cookbook to share their culinary traditions.

DIVERSITY

TERRACYCLE

A FIRSTBIC partnered up with TerraCycle, a pioneer in collecting and reusing non-recyclable waste, in order to organize voluntary collection of writing instruments for recycling, in the very places where people use them (schools, businesses, universities, etc.). “It’s our responsibility to propose innovative solutions for recycling and end-of-life solutions for our products” says Marie Saglio, BIC France Manager. It’s a revolutionary program that has already been rolled out in several countries in Europe – France, Sweden, Benelux, Germany, Spain, Switzerland, the United Kingdom, and it will be further expanded in 2012.

Expanding the rangeBIC continues to expand its offering of BIC® Ecolutions™ products and the range of products with the NF Environnement French ecological certification. This will help the company meet increasing customer demand as well as the requirements among government administrations, which are beginning to apply green purchasing policies. Products manufactured in ISO 9001, ISO 14001 and human rights certified plants, and products that have been granted an ecolabel or use recycled material are chosen. In 2011, 19 items in the BIC® stationery range have the NF Environnement label.

BIC® ECOLUTIONS™ ET NF ENVIRONNEMENT

19 stationery products have

the NF Environnement label

RONNEMENTBIC® ECOLUTIONS™ ET NF ENVIRONNEMENT

63

Awards

The energy of our employees, their drive to innovate and continuously make progress have once again been noticed and rewarded. BIC received numerous awards in all different fields.

Laurels, yes, but teams won’t be resting on them, always looking to the future…

THE WHOLE RANGE OF PRIZES

AGEFI AWARDBIC received the “Quality and

transparency of information and communication” prize from the French economic and financial

magazine, Agefi.

LABRADOR AWARD FOR LISTED COMPANIES

BIC was recognized for the transparency of its financial

information by Labrador and Club Finance HEC.

HUMAN RESOURCES AWARD BRAZIL

BIC Amazonia was awarded a prize for its “Escola de Manufatura” program that helps employees acquire

technical and operational skills in order to encourage their professional

development.

PENTAWARDS USAThe BIC® Flick My BIC® lighter

series was awarded the Pentawards silver medal for best packaging.

PRIZE FOR SPORTS ADVERTISINGThe Human Curling film made to

promote the BIC® Flex 3 shaver brought home a trophy at the Sportel

Sport Audiovisual Advertising Festival.

AWARD FOR THE BRAND THAT MAKES AN IMPRESSION BIC was elected in the Stationery

category as the most widely recognized brand by Portuguese

people in the Marcas que Marcam® guide.

DISPLAY AWARDBIC Australia and New Zealand received the POPAI association’s

recognition with an award for the quality of their point-of-sale

advertising, the BIC® Maxi pocket lighter display.

PEACE PRIZE BIC Graphic USA received

the “Korosy Path to Peace” awarded from The Haven House,

an association that supports victims of domestic violence.

STOCK AWARDSBIC was awarded the Gold Medal at

the “Grand Prix des Actions” by the French magazine Mieux Vivre

Votre Argent, recognizing the companies that performed best

for their shareholders.

AWARD FOR EUROPEAN VENDOR OF THE YEAR

BIC obtained the top award, at the European Office Products

Awards ceremony organized by the stationery professional

publication OPI.

INTERNET DOUBLE WHAMMYThe European website

thebicwall.com developed to celebrate the 60th anniversary

of the BIC® Cristal® ballpoint pen, received the FWA (Favorite Website

Award) and so did the Italian site play-bic.it/neverendingpen.

2012 FINANCE LEADERS TROPHY

BIC received the silver trophy for the best financial management in the sector of Distribution and

consumer goods, awarded by Leaders League.

Shareholders’ information

(a) At December 31, 2011, the number of voting rights was 69,426,087 (including voting rights for treasury shares).(b) Treasury shares temporarily without voting right.

informationShareholders’

64

CAPITAL OWNERSHIP AS OF DECEMBER 31, 2011

VOTING RIGHTS AS OF DECEMBER 31, 2011(a)

43.3% Bich Family, including MBD

55.0% Public

1.7% Treasury shares(b)

57.5% Bich Family, including MBD

41.3% Public

1.2% Treasury shares(b)

65

(1) For the fi scal year 2009, the company paid a special dividend of 1.00 euro.(2) At the shareholders meeting on May 10, 2012, the Board of Directors will propose an ordinary dividend of 2.20 euros as well as an

exceptional dividend of 1.80 euro per share.

PER SHARE DATA in euros 2007 2008 2009 2010 2011Earnings per share 3.51 3.00 3.15 4.29 5.00Dividend per share 1.35 1.35 1.40 (1) 1.90 2.20(2)

Payout ratio 38% 45% 44% 44% 44%Average number of shares outstanding net of treasury shares 49,244,579 48,357,724 48,151,691 48,341,785 47,565,299

BIC SHARE PRICE IN 2011 on Euronext Paris

2011Jan.

2011Dec.

2011Nov.

2011Oct.

2011Sept.

2011Aug.

2011July

2011June

2011May

2011March

2011Apr.

2011Feb.

120

110

100

90

80

70

180

160

140

120

100

80

60

40

BIC

CAC 40

Base 100 – closing December 31, 2010

BIC SHARE PRICE SINCE 2001 sur Euronext Paris

Dec.2001

20032002 2004 2005 2006 2007 2008 2009 2010 2011

BIC

CAC 40

Base 100 – closing December 28, 2000

Shareholders’ information

(1) Shelton real estate acquisition (11 million euros).(2) A special dividend of 1.00 euro per share was paid for the years 2004 and 2009.(3) At the shareholders meeting on May 10, 2012, the Board of Directors will propose an ordinary dividend of 2.20 euros as well as an exceptional

dividend of 1.80 euro per share.

indicatorsKey

66

in million euros 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Net sales 1,491.6 1,360.1 1,264.9 1,380.8 1,448.1 1,456.1 1,420.9 1,562.7 1,831.5 1,824.1Income from operations 252.5 209.0 172.6 238.4 253.9 255.8 209.6 216.0 304.6 339.7

Normalized IFO 205.0 241.1 258.7 253.5 214.3 239.6 314.9 362.4

Capital expenditures 85 70 70 90(1) 71 77 83 53 63 89Free cash fl ow after acquisitions and disposals

186 160 157 99 147 116 143 126 222 109

UNTIL 2003: FRENCH GAAPFROM 2004: IFRS

in euros 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Earnings per share or EPS 2.23 2.03 2.15 3.11 3.43 3.51 3.00 3.15 4.29 5.00

Dividend per share 0.80 0.80 0.90(2) 1.15 1.30 1.35 1.35 1.40(2) 1.90 2.20(3)

UNTIL 2003: FRENCH GAAPFROM 2004: IFRS

67

(1) Organization: since 2010 the product categories have been redefi ned and are now as follows: stationery (consumer), lighters, shavers, other products (consumer) and advertising and promotional products.

STATIONERY 2007 2008 2009 2009 2010 2011Net sales in million euros 714.9 673.3 634.0 509.6 580.7 588.5IFO Margin 15.1 % 13.4 % 9.2 % 8.5 % 11.9 % 14.2 %Normalized IFO margin 15.1 % 14.1 % 11.1 % 9.6 % 12.1 % 14.2 %

FORMER ORGANIZATION NEW ORGANIZATION(1)

OTHER PRODUCTS 2007 2008 2009 2009 2010 2011Net sales in million euros 84.2 106.5 261.0 97.0 99.7 94.5

FORMER ORGANIZATION NEW ORGANIZATION(1)

LIGHTERS 2007 2008 2009 2010 2011Net sales in million euros 390.3 376.9 398.9 480.8 510.8IFO Margin 32.1% 29.2% 32.1% 36.1% 39.1%Normalized IFO margin 32.1% 29.2% 34.0% 36.2% 39.1%

ADVERTISING AND PROMOTIONAL PRODUCTS 2009 2010 2011Net sales in million euros 288.4 362.6 302.0IFO Margin 8.3% 7.6% 6.4%Normalized IFO margin 10.4% 9.2% 8.1%

SHAVERS 2007 2008 2009 2010 2011Net sales in million euros 266.7 264.3 268.8 307.8 328.2IFO Margin 8.2% 4.1% 11.3% 13.6% 18.2%Normalized IFO margin 8.2% 4.1% 12.5% 14.2% 18.2%

BIC® 3- and 4-blade one-piece shavers accounted for 50,9 % of total BIC® one-piece sales in 2011.

68

Letters from readers and credits

Letters from readers

Limited Company, capital euros 182,206,275.96Divided into 47,697,978 shares of euros 3.82Quoted on Eurolist Euronext ParisIsin: FR0000120966Mnemonic: BBContinuous quotation552.008.443 registered in Nanterre, France

Many people have written to give us their reactions, ask us questions and tell us what they just love since we put out the fi rst edition of BIC’tween Us.

Here is a selection of letters for this second publication.

www.bicworld.com www.bickids.com www.sheaff er.com www.mybiclighter.comwww.fl ickyourbic.com www.bicgraphic.com www.bicsport.com

Design and Production: Redaction: Christophe VidalPhoto credit: Kai Jünemann, BIC Group, Olivier Marty, Vivien Fossez, GettyPage 5, image reproduced with authorization from David Downes. This report is printed on FSC certifi ed paper. This document is available online at www.bicworld.com

SOCIÉTÉ BIC 14, rue Jeanne d’Asnières92611 Clichy Cedex, France

Tour de FranceI’ve been a Tour de France fan for years. I’m 65 years old and last year I was pleasantly surprised to see your vehicle pass by with the caravan in Châteauroux on July 8. I say pleasantly surprised because it meant I got some free gifts and best of all, it brought back memories; I remember seeing you on the tour back in 1996. When can we look forward to a BIC cycling team like in the good old days? Alain D., Châteauroux

I’ve heard about a kind of ink called Easy Glide™. What can you tell me about it? Hélène G., BostonEd.: Our research teams worked for fi ve years to perfect an ink that increases ease of writing. This year, we created the BIC® Velocity® Bold pen with 1.6mm point and Easy Glide™ ink. The resulting combination is “the smoothest pen in the world.” We think you’ll really like it…

I lived in New York for many years and I used BIC® shavers. Now I’m back in Brazil and I’ve noticed that your packs are diff erent. Why is that? Renato L., Rio de Janeiro Ed.: That’s exactly right, and it’s because in diff erent countries consumer habits and buying power are diff erent. BIC takes that into

account and adapts its off er to the local market. That means we off er diff erent types of packagings. For example in Nigeria the single

blade BIC® shaver is sold singly and where you live in Brazil you’ll fi nd the BIC® Comfort 3® shaver in two-packs.

I read recently that you were awarded the “Quality and Transparency of information and communication” prize and that you really do a lot in terms of sustainable development. But do you monitor what your suppliers do? Michel P., MarseilleEd.: In 2011 with the help of the specialist, Ecovadis we launched a program that evaluated 81 of our plastic suppliers in terms of their waste management, CO2 emissions, workplace safety, etc. And we’re looking into their suppliers as well. We have evaluated our subcontractors since 2000.

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