2019 Universal Registration Document

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2019 Universal Registration Document 2019 UNIVERSAL REGISTRATION DOCUMENT INCLUDING THE ANNUAL FINANCIAL REPORT Message from the CEO BIC at a glance 2 Extracts from the Integrated Report 5 GROUP PRESENTATION, PERSPECTIVES, AND FINANCIAL STATEMENTS 183 STRATEGY 21 6.1.Consolidated financial statements 184 1.1.History 22 6.2. Statutory auditor's report on the consolidated 1.2.Key figures 25 financial statements 242 1.3.Strategy 31 6.3. Parent company financial statements of SOCIÉTÉ 1.4.2020 and long-term perspectives 32 BIC (FrenchGAAP) 246 AFR 1.5.Business presentation 34 6.4. Statutory auditors’ report onthefinancial statements 265 6.5. Statutory auditors’ special report on regulated agreements 269 AFR RISKS MANAGEMENT 43 2.1.Main risks and risk assessment 44 2.2.Description and mitigation ofmainrisk factors 45 INFORMATIONS ABOUTbTHEbISSUER 271 2.3.Vigilance Plan 51 7.1.Information on the Company 272 2.4. Risk Management and Internal Control procedures AFR 7.2.Share capital 274 implemented bythe Company and insurance 55 AFR 7.3.Shareholding 276 AFR 7.4.Treasury shares and share buyback 278 7.5.Investor relations 279 7.6.Share information 280 AFR OUR ENVIRONMENTAL, SOCIAL,bAND SOCIETAL RESPONSIBILITY 63 NFPS 3.1. The BIC Sustainable Development Program and non-financial performance 65 NFPS 3.2.Responsibility concerning ourproducts 77 BOARD OF DIRECTORS’ REPORT AND DRAFT NFPS 3.3. Environmental responsibility concerning our RESOLUTIONS OF THE SHAREHOLDERS’ operations 88 MEETINGbOFbMAYb20, 2020 281 NFPS 3.4.Our social responsibility to our team members 96 8.1.Ordinary Shareholders’ Meeting 283 NFPS 3.5.Responsibilities related to our supply chain 108 8.2.Extraordinary Shareholders’ Meeting 301 3.6.Societal benefits related to BIC® products 113 8.3.Ordinary and Extraordinary Shareholders’ Meeting 310 NFPS 3.7.Milestones 117 ADDITIONAL INFORMATION 311 AFR CORPORATE GOVERNANCE 125 9.1.Documents on display 312 4.1.Administrative and management bodies 126 9.2.Main press releases 313 AFR 4.2.Corporate Officers’ compensation 150 9.3. Declaration by responsible person of the Universal Registration Document 314 AFR 9.4.Statutory Auditors and fees 315 9.5.Glossary 316 AFR COMMENTS ON THE YEAR 169 5.1.Operations and consolidated results 170 AFR Cross Reference table for Universal Registration 5.2.Financial situation and cash 178 Document 319 5.3.Dividends 179 Cross reference table with theAnnual Financial Report 321 5.4.Investments 180 Cross reference table with themanagement report 322 Cross reference table for environmental and social indicators 324 Cross reference table of thecorporate governance report 325 Elements of the Annual Financial Report are identified in the content using the symbol AFR Elements linked to the Non-Financial Performance Statement are identified in the content using the symbol NFPS This Universal Registraঞ on Document has been C led on 31 March 2020 with the Autorité des Marchés Financiers (AMF), as competent authority under Regulaঞ on (UE) 2017/1129, without prior approval pursuant to Arঞ cle 9 of the said regulaঞ on. The Universal Registraঞ on Document may be used for the purpose of an o@ er to the public of securiঞ es or admission of securiঞ es to trading on a regulated market if completed by a securiঞ es note and, if applicable, a summary and any amendments to the Universal Registraঞ on Document. The whole is approved by the AMF in accordance with Regulaঞ on (UE) 2017/1129. • BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT • MESSAGE FROM BIC'S CHIEF EXECUTIVE OFFICER Gonzalve Bich Our journey began 75 years ago, comprised of many VXFFHVVHVLQQRYDWLRQVVDWLVĆHGFRQVXPHUVDQG DbUHOHQWOHVVFRPPLWPHQWWRKLJKTXDOLW\SURGXFWV :KLOHb,bDPSURXGRIWKLVOHJDF\WRGD\èVFKDOOHQJHV UHTXLUHRXURUJDQL]DWLRQWRHYROYHDQGEHFRPHPRUH DJLOHHIĆFLHQWDQGFRQVXPHUFHQWULFWKDQHYHU 7RGD\ZHQHHGWKHVDPHFRXUDJHLQJHQXLW\DQG HQWUHSUHQHXULDOVSLULWWKDWKHOSHGFUHDWHWKHIRXQGDWLRQ RIRXUEXVLQHVVZDVDFKDOOHQJLQJ\HDUDQG WKH*URXSQDYLJDWHGLQDWRXJKWUDGLQJHQYLURQPHQW bZLOOEHHYHQPRUHGLIĆFXOW:KLOHbWKH&RYLG HSLGHPLFFRQWLQXHVWRHVFDODWHWKHbKHDOWKDQGVDIHW\ RI%,&èVWHDPPHPEHUVFXVWRPHUVVXSSOLHUVDQG FRQVXPHUVUHPDLQDQDEVROXWHSULRULW\ $URXQGWKHJOREHRXUWHDPVDUHDGDSWLQJFRPPHUFLDO activities to maintain customer service and meet FRQVXPHUGHPDQGIRUHVVHQWLDOHYHU\GD\SURGXFWV VXFKDV6KDYHUV/LJKWHUVDQG:ULWLQJ,QVWUXPHQWV 7KURXJKRXWWKH\HDUZHZLOOZRUNFORVHO\ZLWK DOORXUEXVLQHVVSDUWQHUVWRFRQWLQXHWROHYHUDJH RXUbLQWHJUDWHGEXVLQHVVPRGHORIIOLQHDQGRQOLQH GLVWULEXWLRQDQGbVWURQJEDODQFHVKHHWWRPLWLJDWH WKHbVLWXDWLRQDQGPLQLPL]HWKHORQJWHUPĆQDQFLDO LPSDFWRIWKHHSLGHPLF 'HVSLWHFXUUHQWKHDGZLQGV,DPFRQYLQFHGWKDW RXUbFDWHJRULHVRIIHUJHQXLQHSRWHQWLDODQGWKDW RXUbSURGXFWVZLOOUHPDLQHVVHQWLDOVWRFRQVXPHUV HYHU\GD\OLIHGULYLQJORQJWHUPSURĆWDEOHJURZWK DQGbFUHDWLQJVXVWDLQDEOHYDOXHIRUDOORXUVWDNHKROGHUV IRUDQRWKHU\HDUV • BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT • 1 BIC AT A GLANCE 2019 financial performance NET SALES: €1,949.4 M 40% of Net Sales NORMALIZED (1) INCOME FROM OPERATIONS (NIFO): €331.8 M NIFO MARGIN: 17.0% 35% of Net Sales EARNINGS PER SHARE (GROUP SHARE): €3.91 FREE CASH FLOW (2): €198.0 M NET CASH POSITION: €146.9 M 24% of Net Sales ORDINARY DIVIDEND (3): €3.45 per share (1) Normalized: excluding exceptional items. - (2) Aer acquisitions and disposals. - (3) 2018 Dividend paid in June 2019. 12,777 Team members 26 Factories on 4 1omঞm;m|v Worldwide manufacturing footprint NORTH of Net Sales AMERICA 39% DEVELOPING of Net Sales MARKETS 32% 17 5 4 "|-ঞom;uŖ Lighters Shavers EUROPE 29% of Net Sales *including BIC Graphic (adveising and promotional products). BIC is listed on “Euronext Paris” , part of the SBF120 and CAC Mid 60 indexes, and also part of the following Socially Responsible Investment indexes: CDP Climate 2019: Leadership Level A- and CDP Supplier Engagement Rating 2019: Leadership A-, FTSE4Good indexes, Ethibel Pioneer and Ethibel Excellence Investment Registers, Ethibel Sustainability Index (ESI) Excellence Europe, Stoxx Global ESG Leaders Index. 2 • BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT • Key financial indicators Change on a Change as 2018 2019 comparative reported basis NET SALES (in million euros) 1,949.8 1,949.4 0.0% -1.9% NORMALIZED INCOME FROM OPERATIONS (in million euros) 352.4 331.8 NORMALIZED INCOME FROM OPERATIONS MARGIN (in %) 18.1% 17.0% NET INCOME GROUP SHARE (in million euros) 173.4 176.1 EARNINGS PER SHARE GROUP SHARE (in euros) 3.80 3.91 Key non-financial indicators 2018 2019 ENERGY CONSUMPTION (Gigajoules/tons) 12.14 12.59 WATER CONSUMPTION (M3/tons) 5.32 4.87 GREENHOUSE GAS EMISSIONS NORMALIZED TO PRODUCTION (tCO2/ton) 1.014 1.070 Board of Directors 50% 50% 7 94% !-|;o=-;m7-m1; m7;r;m7;m|vŖ )ol;mŖ ;;ঞm]vbmƑƏƐƖ in 2019 Shareholding structure 54% 45% 1% Public b1_=-lbѴ(Voting rights: 61%) $u;-vuv_-u;v As of December 31, 2019, the total number of issued shares of SOCIETE BIC was 45,532,240 shares, representing: 67,035,094 voting rights. *In accordance with the AFEP-MEDEF Code, Directors who represent the employees are not taken into account when assessing the ratio of Independent Directors. Fuhermore, in accordance with the law, the Directors who represent the employees are not included when assessing the percentage of women on the Board–data subject to the approval of the resolutions by the Annual General Meeting on May 20, 2020. • BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT • 3 4 • BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT • EXTRACTS FROM THE INTEGRATED REPORT 06 • 75 years of sustainable growth and value creation 08 • Business model 10 • Industrial expertise 11 • Governance 14 • Risk management 15 • “BIC 2022 - Invent the future” transformation plan 17 • Sustainable development: “Writing the Future, Together” 20 • Value sharing • BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT • 5 75 YEARS OF SUSTAINABLE GROWTH AND VALUE CREATION For 75 years, we have strived to reinforce BIC’s business model by constantly adapting and improving the way we access and use the resources that are necessary to our operations. 1945 1960 1970 1980 1990 The Glorious 30 Development Oil crisis Beginning End of the Cold War, Beginning of the o=l-vv1omvlrঞomķ o=]Ѵo0-Ѵb-ঞom Beginning of ecological 1omvl;uvo1b;|ķ buv|_r;ul-uh;| awareness -0Ŋ0ool in France Corporate life 1944 1972 1994 Marcel Bich acquires BIC is listed on the Bruno Bich is appointed a factory in Clichy, Paris Stock Exchange Chairman and Chief France, and starts Executive Officer a writing instrument business with his partner Édouard Buffard Products 1943 1969 1973 1979 1990 IKEA furniture kit BIC launches BIC diversifies its BIC acquires Conté® -l;0o promotional writing product portfolio coloring and graphite instruments and launches the BIC® brand 1992 1950 pocket lighter BIC acquires the BIC launches its own 1970 1979 American correction ballpoint pen in France, Boeing 747 1975 Walkman brand Wite-Out® ® the BIC Cristal BIC pioneers the “one-piece shaver” 1994 Amazon m|;um-ঞom-Ѵ Expansion ƐƖƔƐŊƐƖѵƏ 1965 1973 1995 Western Europe, Japan Mexico Expansion in Eastern South America, North Europe, Central Europe America, Oceania, and South East Asia Middle East and Africa Products and services that have significantly modified consumption paerns. 6 • BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT • Our objective is to continuously create financial and non-financial value for all of our stakeholders, while remaining focused on our consumers. 2000 2010 2020 Subprime crisis Rise of the Internet, Paris Agreement 11;Ѵ;u-ঞomo= on Climate Change, bm|;um-ঞom-Ѵ|u-7; Mobile internet explosion 2004 2013 2018 BIC launches BIC listed by CDP Separation of Chairman
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