Societe BIC: Fourth Quarter & Full Year 2023 Results

Clichy, France - February 19, 2024

BIC FOURTH QUARTER & FULL YEAR 2023 RESULTS

A solid year, delivering results in line with our 2025 strategic goals

FY23 Net Sales growth of +9.2% at constant currencies (CC) driven by all three divisions:

• Human Expression: +10.2% net sales growth at CC driven by distribution gains across European countries, strong commercial execution in Latin America and double-digit growth in Middle East and Africa.
• Flame for Life: +3.3% net sales growth at CC driven by distribution expansion and the strong performance of added-value products in Europe, Latin America, the Middle East, and Africa.
• Blade Excellence: +17.8% net sales growth at CC fueled by double-digit growth in Europe, Latin America, the Middle East and Africa, along with market share gains in all key regions and strong performance of both added-value and new products.
  
  

Adjusted EBIT growth of +6.9%, with aEBIT margin at 14.7% (+70bps), driven by gross profit margin improvement through favorable price, mix and operational efficiencies, partially offset by continued investments in operations and brand support.

Strong Free Cash Flow generation of €248.7 million driven by solid Operating Cash Flow of €469.2 million.

Strong adjusted EPS growth up +11.3% versus prior year, at €5.70.

Sustained Shareholder Remuneration:

• €120 million proposed Ordinary Dividend for 2023 fiscal year, to be paid on June 12, 2024:
  €2.85 per share¹, up 11.3% versus prior year;
• Extraordinary Dividend of €1.42 per share¹, to be paid on September 18, 2024;
• Up to €40 million of Share Buyback program to be executed in 2024
  
  

2024 Outlook (based on current market assumptions²)

Full Year 2024 Net Sales are expected to grow between +5% and +7% at constant currency³, driven by volumes, price, and mix. We expect to see a slight improvement in 2024 adjusted EBIT margin driven by operating leverage. We will continue to drive EBIT expansion to deliver long-term profitable growth, in line with our 2025 targets. Free Cash Flow is expected to be above €220 million in 2024.

Gonzalve Bich, BIC's Chief Executive Officer commented:

"In 2023, we maintained our solid execution for the third consecutive year, driven by our Horizon initiatives, which continue to support our growth trajectory and margins in line with mid-term guidance through 2025 thanks to the commitment of our global team members.
Although facing significant global macroeconomic challenges, we delivered a robust performance that was fueled by disciplined execution, innovation, and successful new launches. We boosted our marketing capabilities with consumer centric campaigns that drove growth across multiple sales channels and geographies.
Our focus on operational excellence contributed to a gross profit improvement of 240 basis points over the prior year, through procurement efficiencies and a reliable and more sustainable supply chain. An integral element is the supply of electricity from renewable sources, which increased to 91%, up from 76% the prior year.
In line with BIC's capital allocation policy, the Board of Directors has decided to recommend a total dividend of €4.27 per share comprised of an ordinary dividend of €2.85 per share and an extraordinary dividend of €1.42 per share.
We enter 2024 with momentum and confidence. We will prioritize disciplined commercial execution and ongoing innovation. In line with our strategic goals, we will continue to leverage our successful product launches, and capture geographic expansion opportunities while driving sustainable margins through operational efficiencies to maximize Free Cash Flow."

Key Group financial figures

in million euros	Q4 2022	Q4 2023	FY 2022	FY 2023
Group Net Sales	526.7	526.1	2,233.9	2,263.3
Change as reported	+20.6%	(0.1)%	+21.9%	+1.3%
Change on a comparative basis	+9.1%	+2.4%	+11.0%	+3.5%
Change on a constant currency basis	+13.7%	+15.9%	+13.8%	+9.2%
EBIT Margin	7.9%	12.2%	13.6%	14.2%
Adjusted EBIT Margin	8.2%	13.8%	14.0%	14.7%
EPS (in euros)*	0.28	1.05	4.52	5.30
Adjusted EPS (in euros)	0.57	1.23	5.12	5.70
Free Cash Flow before acquisitions and disposals	53.0	106.5	203.7	248.7
Net Cash Position	359.9	385.4	359.9	385.4

^* Corrected to take into account the Virtual Power Purchase Agreement accounting in 2022

Update on our 2025 Strategic Plan (Horizon)

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

Confirming the following Horizon objectives by year-end 2025:

• Annual net sales: growth of 5-7% at constant currencies
• Adjusted EBIT margin: approx. 150bps improvement from the 2022 level of 14.0%
• Free cash flow: above €220 million in 2024, above €240 million in 2025⁴
  
  

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

Deliver more Sustainable Growth

• We reinforced our marketing capabilities and innovative campaigns to drive category growth. In the US, EZ Reach utility pocket lighters reached 5.8% of market share in value, up +0.4 points fueled by strong distribution and in-store visibility in the Modern Mass market. In the Blade Excellence division, our latest shaver innovations Easy Rinse and Soleil Escape both outpaced the market and gained a combined total of 1.8 pts in value share.
• Innovation continued to flourish, with 9.5% of sales coming from new products introduced in the last three years, up 0.5 pts versus last year. The number of patents granted, one of our input indicators which reflects our innovation pipeline, remains strong and in line with our Horizon aspirations.
• We continued to focus on expanding our presence both offline and online. eCommerce online sales represented 12.7% of the Group's net sales in 2023, growing 13% at constant currency driven by the B2B channel in key countries notably US, France and Brazil.
• In line with our Revenue Growth Management discipline, our strategic emphasis on crafting a consumer-focused product lineup led to a Net Sales per SKU growth of 21.4% and a 9% reduction of total SKU count, outpacing our objectives. The resulting price and mix benefit successfully outpaced volume and inflation headwinds.
• Our B2B business BIC Blade Tech was impacted by clients' revised business plans. However, in the fourth quarter it secured agreements with three new clients. These partnerships are promising and are expected to bear fruit in 2024. Additionally, we have reached an agreement with our largest customer to test additional product launches in 2024.
  
  

Execute Operating Efficiencies

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

Capture Cash Every Day

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

Fourth quarter and FY 2023 key highlights

in million euros	Q4 2022	Q4 2023	FY 2022	FY 2023
Net Sales	526.7	526.1	2,233.9	2,263.3
Gross Profit	243.2	271.6	1,078.0	1,148.1
Gross Profit margin	46.2%	51.6%	48.3%	50.7%
EBITDA	72.4	102.3	404.5	422.8
EBIT	41.6	64.2	303.5	320.5
EBIT margin	7.9%	12.2%	13.6%	14.2%
Non-recurring items	1.6	8.5	8.2	12.6
Adjusted EBIT	43.2	72.7	311.7	333.1
Adjusted EBIT margin	8.2%	13.8%	14.0%	14.7%

FY 2023 net sales increased 9.2% at constant currency (including +5.5 points from Argentina). Q4 2023 net sales increased 15.9% at constant currency (including +13.5 points impact from Argentina) overall driven by double digit growth in Latin America and robust performance in Europe notably in the Blade Excellence division.

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

Q4 2023 gross profit margin increased 5.4 points to 51.6%, driven by strong price and mix, lower raw material costs and manufacturing efficiencies. This was partially offset by unfavorable fixed cost absorption and unfavorable forex (mainly due to USD/MXN, USD/ARS and EUR/TRY, while EUR/USD hedging is favorable).

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

Q4 2023 adjusted EBIT margin increased 5.6 points to 13.8% versus 8.2% in Q4 2022, mainly driven by strong gross profit improvements and lower operating expenses and brand support investments as percentage of net sales.

Key components of the change in adjusted EBIT margin

Key components of the change in Adjusted EBIT margin	Q1 2023 vs. Q1 2022	Q2 2023 vs. Q2 2022	Q3 2023 vs. Q3 2022	Q4 2023 vs. Q4 2022	FY 2023 vs. FY 2022
(in points)
· Change in Gross Profit	(2.0)	+1.1	+5.4	+5.4	+2.4
· Brand Support	(1.2)	+0.3	(0.7)	-	(0.5)
· Operating expenses and other expenses	(3.6)	(1.4)	(0.8)	+0.2	(1.2)
Total change in Adjusted EBIT margin	(6.8)	-	+3.9	+5.6	+0.7

Net income and earnings per share (EPS)

in million euros	Q4 2022	Q4 2023	FY 2022	FY 2023
EBIT	41.6	64.2	303.5	320.5
Finance revenue/costs*	(22.7)	(3.5)	(26.1)	(7.5)
Income before Tax*	18.9	60.6	277.4	313.0
Net Income Group share*	12.4	45.1	198.6	226.5
Adjusted Net Income Group Share	25.1	52.7	225.2	243.4
Adjusted EPS Group Share (in euros)	0.57	1.23	5.12	5.70
EPS Group Share (in euros)*	0.28	1.05	4.52	5.30

^* Corrected to take into account the Virtual Power Purchase Agreement accounting in 2022

FY 2023 finance revenues/costs increase versus last year was mainly due to the 2022 fair value adjustment related to the Virtual Power Purchase Agreement in Greece. 2023 income from cash and cash equivalents also increased versus the previous period due to higher interest rates, especially on euro, on US dollar and on Argentinean peso. Net Income Group share stood at €226.5 million versus €198.6 million last year. FY 2023 effective tax rate was 27.6% vs. 28.4% for FY 2022.

Change in net cash position

Change in net cash position	FY 2022	FY 2023
in million euros
Net Cash position (beginning of period - December)	400.1	359.9
Net cash from operating activities	+300.0	+353.3
·Of which operating cash flow	+428.0	+469.2
·Of which change in working capital	(29.2)	(27.4)
·Others5	(98.8)	(88.5)
Capital expenditures6	(96.3)	(104.6)
Dividend payment	(94.7)	(110.2)
Share buyback program7	(54.5)	(116.2)
Net cash from the liquidity contract	+0.7	+0.3
Proceed from Pimaco divestiture	1.1	-
Acquisitions8	(73.8)	-
Other items	(22.7)	+2.9
Net Cash position (end of period - December)	359.9	385.4

FY 2023 Operating Cash flow was €469.2 million, fueled by solid business performance. The €27.4 million negative change in Working Capital was driven by a decrease in Inventory levels, more than offset by higher Trade Receivables and a decrease in Trade Payables. FY 2023 Free Cash Flow before acquisitions and disposals was €248.7 million. The Net Cash position at the end of December was €385.4 million, after dividend payments and €116.2 million in share buybacks.

Shareholders' remuneration

• An ordinary dividend of €2.56 per share was paid on May 31, 2023.
• €116.2 million in share buybacks were completed by Société BIC at the end of 2023. This includes €100 million of share buyback for cancellation and €16.2 million of free shares to be granted (long term incentives). 1,951,722 shares were purchased at an average price of €59.52 per share.

Operational Trends by Division

Human Expression

in million euros	Q4 2022	Q4 2023	FY 2022	FY 2023
Volumes in million units	-	-	6,523.9	6,073.3
% Change	-	-	+11.7%	(6.9)%
Net Sales	175.6	170.9	838.8	845.9
Change as reported	+14.7%	(2.7)%	+22.7%	+0.8%
Change on a comparative basis	+2.5%	(1.6)%	+11.8%	+2.5%
Change at constant currency	+11.4%	+20.2%	+16.9%	+10.2%
Adjusted EBIT	(8.9)	(0.0)	25.4	60.5
Adjusted EBIT Margin	(5.1)%	(0.0)%	3.0%	7.2%

The Human Expression division's FY 2023 Net Sales grew by 10.2% at constant currency driven by growth in Latin America, Europe and Middle East and Africa. Positive price and mix contribution through further innovation and trade-up, was partially offset by lower volumes in Developed Markets.

In Europe, the geographical expansion in the Eastern countries, combined with BIC's focus on its iconic products, such as 4-Colors, drove a mid-single-digit growth at constant currency. Net Sales were boosted by a new range of 4-Colors, Media Clic, and Super Clip. BIC gained market share in key countries such as France and the UK⁹, both online and offline, thanks to its value-for-money positioning which is increasingly relevant to consumers.

In the US, net sales were driven by both core products (Correction Tape and Mechanical Pencil) as well as our Skin Creative segment (Inkbox semi-permanent tattoos and Bodymark tattoo marker), in line with the Horizon strategy to grow in innovative segments.

Despite a declining market, BIC remains a great value-for-money brand appealing to consumers and therefore maintained its market share notably boosted by Mechanical Pencil, Correction Tape, Highlighters, and Gel segments. Also strengthening its digital capabilities, BIC continued to grow in e-commerce, growing net sales by double digits and gaining 1.0 pts of market value share¹⁰.

In Latin America, net sales grew by double digits in Brazil, driven by favorable price and mix. Key products such as 4-Colors and Coloring Felt Pen grew double digit, boosted by strong commercial execution with major clients.

In the Middle East and Africa, net sales grew by double digits, fueled by both volume and price. Several key regions contributed to growth, such as West Africa and South Africa, which was driven by a strong Back to School sell-in.

FY 2023 Human Expression division adjusted EBIT margin was 7.2% versus 3.0% in FY 2022. The increase was driven by a favorable price/mix, lower raw material costs, brand support investments, and manufacturing efficiencies. This was partially offset by unfavorable currency fluctuations, mainly the US dollar/Mexican peso, unfavorable fixed cost absorption, and higher operating expenses.

Q4 2023 Human Expression division adjusted EBIT margin improved from -5.1% to 0% versus prior year. This was driven by gross profit increase (favorable pricing and mix and lower cost of production including raw material and electricity) as well as lower brand support and operating expenses. This was partially offset by unfavorable forex (mainly due to USD/MXN, USD/ARS and EUR/TRY).

Flame for Life

in million euros	Q4 2022	Q4 2023	FY 2022	FY 2023
Volumes in million units	-	-	1,647.4	1,603.2
% Change	-	-	+4.9%	(2.7)%
Net Sales	219.6	217.1	871.6	851.5
Change as reported	+21.7%	(1.1)%	+21.3%	(2.3)%
Change on a comparative basis	+10.9%	+1.7%	+10.1%	(0.3)%
Change at constant currency	+12.3%	+7.8%	+11.2%	+3.3%
Adjusted EBIT	63.8	69.0	305.5	290.4
Adjusted EBIT Margin	29.1%	31.8%	35.0%	34.1%

The Flame for Life division's FY 2023 Net Sales grew by 3.3% at constant currency, positively driven by distribution gains in Latin America, Europe and the Middle East and Africa. Volumes were negatively impacted by performance in the US but grew mid single digit versus pre-covid levels.

In Europe, net sales grew high single digit driven by core lighter products and further distribution gains in Eastern Europe, as well as premium products such as Djeep and the EZ Reach launch, in line with our strategy to capture more flame occasions. The EZ Reach pocket utility lighter was launched into most major markets in Europe and accounted for almost 20% of total division's growth versus last year.

In the US, the total lighter market declined by 6.3% in volume and 2.8% in value¹¹. However, BIC maintained its leadership position, gaining share in volume, +0.7 pts, and value, +1.3 pts boosted by the utility segment. Our EZ Reach lighter reached 5.8% of market share in value¹², up +0.4 points thanks to strong distribution and in-store visibility in the Modern Mass market. In 2023, the US lighters business performance was negatively impacted by an unfavorable comparative basis in Q1 2023 as a result of negative phasing versus Q1 2022 (which benefited from delayed shipments following supply issues in Q4 2021) as well as competitive imports coming from Asia.

In Latin America, Brazil net sales grew double digit driven by favorable price and mix, as well as increased distribution of decorated and utility lighters. The launch of the BIC EZ Reach utility pocket lighter in the fourth quarter was successful and contributed to net sales performance.

In Middle East and Africa, net sale performance was driven by distribution expansion across the regions, notably Morrocco, Egypt and South Africa.

FY 2023 Flame for Life division adjusted EBIT margin reached 34.1% versus 35.0% in FY 2022 driven by higher raw material costs, unfavorable fixed cost absorption, negative mix from less contribution from US Lighter sales, as well as increase in brand support investment (EZ Reach launch in Europe) and operating expenses. This was partly offset by strong price and favorable EUR/USD hedging.

Q4 2023 Flame for Life division adjusted EBIT margin improved to 31.8%, versus 29.1% in Q4 2022. This improvement is mainly driven by favorable pricing, lower raw material costs, favorable EUR/USD hedging as well as manufacturing efficiencies. This was partially offset by higher brand support investments.

Blade Excellence

in million euros	Q4 2022	Q4 2023	FY 2022	FY 2023
Volumes in million units	-	-	2,350.9	2,428.3
% Change	-	-	+1.3%	+3.3%
Net Sales	124.0	129.4	497.0	536.8
Change as reported	+28.9%	+4.4%	+23.9%	+8.0%
Change on a comparative basis	+16.4%	+8.6%	+12.7%	+11.6%
Change at constant currency	+20.6%	+24.3%	+14.6%	+17.8%
Adjusted EBIT	10.1	21.9	66.6	68.4
Adjusted EBIT Margin	8.1%	16.9%	13.4%	12.7%

FY 2023 Blade Excellence division net sales grew 17.8% at constant currency, fueled by higher volumes and market share gains across all key regions¹³. This was a result of added value and new products' robust Net Sales performance in the 3 to 5 blade and Hybrid ranges, notably in Europe and Latin America.

In Europe, BIC successfully grew market share both in Western (France, Italy) and Eastern Europe (Poland, Romania) thanks to its value for money proposition in an inflationary environment. Net sales grew double digits, fueled by distribution gains. The 3 blade (Bic Flex 3) and Hybrid (Soleil Click and Hybrid Flex 5) segments were the largest contributors to net sales growth.

In the US, performance was driven by our innovations including Easy Rinse, Soleil Escape, Sensitive 5 and Flex 5 Hybrid as consumers shifted to premium items, supporting BIC's strategy to grow in these added-value segments. E-commerce performance added to Net sales growth, growing double digit thanks to strong execution and the success of new products. In a declining market, BIC gained market share in both Male and Female disposable segments and ended the year at +0.3 pts of total disposables¹⁴.

Our trade-up strategy towards a value-added 3 blade-offering, along with volume increases, yielded solid results in Latin America. Net sales grew double digit in both Brazil and Mexico driven by the Soleil and Flex ranges as well as Comfort 3. In Brazil, we continued to develop our product portfolio manufactured locally. BIC solidified its #2 position, gaining market share in both volume, +0.8 pts, and value, +0.6 pts¹⁵, with further distribution gains and strong commercial execution through key marketing campaigns on premium products. In Mexico, innovations like Flex 5 and Soleil Escape, as well as distribution gains in traditional trade and Modern Mass Market brought incremental market share growth.

FY 2023 Blade Excellence division adjusted EBIT margin was 12.7% versus 13.4% in FY 2022 impacted negatively by electricity costs inflation in the first half of the year, unfavorable forex (mainly the US dollar/Mexican peso) and unfavorable fixed cost absorption partially offset by favorable price and mix and manufacturing efficiencies. The margin was also impacted by higher brand support investments, mostly related to the launch of BIC® EasyRinse and its major advertising campaign in the US.

Q4 2023 Blade Excellence division adjusted EBIT margin reached 16.9% versus 8.1% in Q4 2022, with a strong gross profit improvement driven by favorable price and mix, lower raw material costs, favorable fixed cost absorption as well as manufacturing efficiencies. The gross profit margin improvement was also positively impacted by favorable EUR/USD hedging.

BIC's sustainable development journey - update on the writing the future, together 2025 commitments

	2025 targets	2023 achievements
Fostering sustainable innovation in BIC® products	100% reusable, recyclable or compostable plastic packaging	81% Reusable, Recyclable, or Compostable plastics in BIC's products packaging
Acting against climate change	100% renewable electricity	91% renewable electricity
Committing to a safe work environment	Zero accidents across all operations	+37% improvement in the number of lost time incidents (Employees and external temporary), 80% of total BIC sites reached a zero-accident level,
Proactively involving suppliers	Work responsibly with its strategic suppliers to ensure the most secure, innovative, and efficient sourcing	83% of strategic suppliers have integrated the responsible purchasing program
Improving lives through education	Improve learning conditions for an estimated 250 million children globally	Estimated number of children with improved learning conditions: 199 million (cumulative since 2018)

In line with our Sustainable Development journey, we progressed on our goals during 2023 and moved a step forward towards reducing our overall carbon footprint:

• We achieved the following extra financial ratings: CDP A-, Moody's 58/100 - Robust, MSCI AAA, ISS C+.
• BIC was ranked 12 out of 120 companies for the French award called "Top ranking for the number of women in companies" management bodies (SBF 120) organized by convictionRH and recognized by the French Ministry of Gender Equality.
• In 2023, BIC carried out several initiatives with sustainable benefits in Blade Excellence:
  • The BIC EasyRinse shaver was launched in Q1, a long-lasting shaver that saves water with up to 60% less time rinsing. It offers refillable options and is made out of recycled content. The Women's refillable version is made with 34% recycled plastic and 58% recycled rubber;
  • The Flex 5 Disposable shaver, a key added-value product in our portfolio, was enhanced with 80% recycled blister shell and a 100% recycled insert card.
    
    

Appendix

2024 Market Assumptions

Our 2024 outlook is based on the following market assumptions2¹⁶:

Market trends (in value):

• Europe:
  • Low to mid-single digit decrease in Stationery market;
  • Low-single digit decrease in Lighters market;
  • Low to mid-single digit increase in Shavers market;
• US:
  • Low to mid-single digit decrease in Stationery market;
  • Low to mid-single digit decrease for total pocket Lighter market;
  • Flat to Low-single digit decrease in the total one-piece Shaver market;
• Latin America:
  • Low to mid-single digit increase in Stationery market;
  • Mid to high-single digit increase in Lighters market;
  • Mid to high-single digit increase in Shavers market;
• India: Mid to high-single-digit increase in Stationery market.
  
  

Adjusted EBIT margin drivers:

• Gross Profit:
  • Higher input costs inflation
  • Unfavorable fixed costs absorption
  • Unfavorable country mix due to growth in emerging markets
  • Slightly favorable pricing
  • Manufacturing and procurement efficiencies
• Adjusted EBIT:
  • Favorable operating leverage
  • Slight increase in Brand Support and R&D in line with Net Sales growth
    
    

Free Cash Flow before Acquisitions and Disposals drivers:

• Reducing cash conversion cycle through Working capital improvements
• EBIT margin expansion
• Approximately €110 million in capital expenditures
  
  

Currency: 2024 EUR/USD hedging rate: 1.08

2023 miscellaneous events and Governance

March 31: Héla Madiouni was appointed as Director representing the employees for the Board of Directors of Société BIC. She replaced Inna Kostuk who resigned on October 14, 2022.
May 16: Véronique Laury and Carole Callebaut Piwnica were appointed as Directors. Candace Matthews, Jacob (Jake) Schwartz and Timothée Bich were renewed as Directors.
September 11: During its 2023 Investor Update, BIC delivered an interim update on its five-year Horizon Strategic Plan (for 2025).
October 26: Pascal Chevallier was appointed as Director representing the employees to the Board of Directors of Société BIC. He replaced Vincent Bedhome, whose term has expired.

Net sales by geography

Q4 net sales by geography	Q4 2022	Q4 2023	% As reported	% at constant currencies	% On a comparative basis
in million euros
Group	526.7	526.1	(0.1)%	+15.9%	+2.4%
Europe	139.1	141.3	+1.6%	+6.8%	+6.8%
North America	219.1	198.7	(9.3)%	(4.5)%	(4.5)%
Latin America	102.4	128.4	+25.4%	+82.9%	+15.5%
Middle East and Africa	34.4	29.2	(14.9)%	+3.0%	+3.0%
Asia and Oceania (including India)	31.8	28.4	(10.5)%	(4.8)%	(4.8)%

FY net sales by geography	FY 2022	FY 2023	% As reported	% at constant currencies	% On a comparative basis
in million euros
Group	2,233.9	2,263.3	+1.3%	+9.2%	+3.5%
Europe	636.7	665.9	+4.6%	+9.0%	+8.9%
North America	954.9	882.9	(7.5)%	(4.8)%	(5.1)%
Latin America	390.6	461.7	+18.2%	+42.6%	+12.0%
Middle East and Africa	136.4	154.2	+13.1%	+26.6%	+26.6%
Asia and Oceania (including India)	115.3	98.6	(14.6)%	(7.9)%	(7.9)%

Net sales by division

Q4 net sales by division	Q4 2022	Q4 2023	Change as reported	FX impact	Change in Perimeter]	Argentina impact	Change on a Comparative basis
in million euros				(in points)	(in points)	(in points)
Group	526.7	526.1	(0.1)%	(4.5)	-	+2.017	+2.4%
Stationery- Human Expression	175.6	170.9	(2.7)%	(4.4)	-	+3.3	(1.6)%
Lighters- Flame for Life	219.6	217.1	(1.1)%	(3.9)	-	+1.1	+1.7%
Shavers- Blade Excellence	124.0	129.4	+4.4%	(5.9)	-	+1.7	+8.6%
Other Products	7.5	8.6	+14.6%	(0.9)	-	-	+15.5%

FY net sales by division	FY 2022	FY 2023	Change as reported	FX impact	Change in Perimeter	Argentina impact	Change on a Comparative basis
in million euros				(in points)	(in points)	(in points)
Group	2,233.9	2,263.3	+1.3%	(3.1)	+0.2	+0.718	+3.5%
Stationery- Human Expression	838.8	845.9	+0.8%	(3.2)	+0.3	+1.2	+2.5%
Lighters- Flame for Life	871.6	851.5	(2.3)%	(2.5)	-	+0.5	(0.3)%
Shavers- Blade Excellence	497.0	536.8	+8.0%	(4.1)	-	+0.5	+11.6%
Other Products	26.6	29.1	+9.3%	(1.1)	-	-	+10.4%

Change in Perimeter and Currency Fluctuations Impact on Net Sales

Impact of Change in Perimeter and Currency Fluctuations on Net Sales (excludes ARS) in %	Q4 2022	Q4 2023	FY 2022	FY 2023
Perimeter	+1.5	-	+1.4	+0.2
Currencies	+8.9	(4.5)	+8.8	(3.1)
of which USD	+5.5	(2.0)	+5.7	(1.1)
of which BRL	+1.6	+0.1	+1.3	+0.1
of which MXN	+1.0	+0.5	+0.7	+0.5
of which CAD	+0.1	(0.1)	+0.3	(0.2)
of which ZAR	-	(0.3)	+0.0	(0.2)
of which NGN	+0.1	(0.6)	+0.1	(0.4)
of which TRY	(0.2)	(0.4)	(0.5)	(0.4)
of which INR	-	(0.1)	+0.2	(0.1)
of which RUB and UAH	+0.7	(1.0)	+0.6	(0.8)

Sensitivity to Net Sales and Income Before Tax (IBT) of USD/EUR fluctuation

Sensitivity to Net Sales and Income Before Tax (IBT) of USD/EUR fluctuation in %	FY 2022	FY 2023
+/- 5% change in USD impact on Net Sales	2.1	1.9
+/- 5% change in USD impact on IBT*	1.3	0.8

^* Corrected to take into account the Virtual Power Purchase Agreement accounting in 2022

EBIT by division

EBIT by division	Q4 2022	Q4 2023	FY 2022	FY 2023
in million euros
Group	41.6	64.2	303.5	320.5
Margin	7.9%	12.2%	13.6%	14.2%
Stationery- Human Expression	(9.7)	(6.1)	21.3	51.1
Margin	(5.5) %	(3.6)%	2.5%	6.0%
Lighters- Flame for Life	63.3	67.6	304.0	288.6
Margin	28.8%	31.1%	34.9%	33.9%
Shavers- Blade Excellence	9.8	21.1	64.1	67.3
Margin	7.9%	16.3%	12.9%	12.5%
Other Products	1.0	0.7	(2.8)	(1.0)
Unallocated costs	(22.8)	(19.1)	(83.0)	(85.5)

Adjusted EBIT by division

Adjusted EBIT by division	Q4 2022	Q4 2023	FY 2022	FY 2023
in million euros
Group	43.2	72.7	311.7	333.1
Margin	8.2%	13.8%	14.0%	14.7%
Stationery- Human Expression	(8.9)	-	25.4	60.5
Margin	(5.1)%	(0.0)%	3.0%	7.2%
Lighters- Flame for Life	63.8	69.0	305.5	290.4
Margin	29.1%	31.8%	35.0%	34.1%
Shavers- Blade Excellence	10.1	21.9	66.6	68.4
Margin	8.1%	16.9%	13.4%	12.7%
Other Products	1.0	0.9	(2.8)	(0.8)
Unallocated costs	(22.8)	(19.1)	(83.0)	(85.5)

Condensed Profit & Loss

Condensed Profit and Loss	Q4 2022	Q4 2023	FY 2022	FY 2023
in million euros
Net Sales	526.7	526.1	2,233.9	2,263.3
Cost of goods	283.5	254.5	1,155.9	1,115.2
Gross profit	243.2	271.6	1,078.0	1,148.1
Administrative & net other operating expenses/ (gain)	201.6	207.4	774.5	827.6
EBIT	41.6	64.2	303.5	320.5
Finance revenue/costs*	(22.7)	(3.5)	(26.1)	(7.5)
Income before tax*	18.9	60.6	277.4	313.0
Income tax expense*	(6.4)	(15.6)	(78.8)	(86.5)
Net Income Group Share*	12.4	45.1	198.6	226.5
Earnings per Share Group Share (in euros)*	0.28	1.05	4.52	5.30
Average number of shares outstanding (net of treasury shares)	43,974,525	42,740,269	43,974,525	42,740,269

^* Corrected to take into account the Virtual Power Purchase Agreement accounting in 2022

Balance Sheet

Balance Sheet in million euros	December 31, 202219	December 31, 2023
Assets
· Property, plant & equipment	612.6	623.4
· Investment properties	1.6	1.0
· Goodwill and intangible assets	407.4	382.3
· Other non-current assets	166.3	151.0
Non-current assets	1,187.9	1,157.7
· Inventories	588.3	558.0
· Trade and other receivables	414.7	403.5
· Other current assets	62.4	40.6
· Other current financial assets and derivative instruments	17.3	19.8
· Cash and cash equivalents	416.3	467.7
Current assets	1,499.0	1,489.6
Total Assets	2,686.9	2,647.3
Liabilities & Shareholders' Equity
Shareholders' equity	1,866.0	1,846.6
· Non-current borrowings	42.8	46.8
· Other non-current liabilities	173.0	167.6
Non-current liabilities	215.8	214.4
· Trade and other payables	181.1	144.7
· Current borrowings	76.5	109.4
· Other current liabilities	347.4	332.2
Current liabilities	605.1	586.3
Total Liabilities & Shareholders' Equity	2,686.9	2,647.3

Working Capital and Cash Flow

Working Capital in million euros	FY 2022	FY 2023
Total Working Capital	557.0	560.0
Of which, inventories	588.3	558.0
Of which, trade and other receivables	414.7	403.5
Of which, Trade and other payables	(181.1)	(144.7)

Cash Flow Statement	FY 2022	FY 2023
in million euros
Group Net income	198.6	226.5
- Amortization and provisions	128.2	138.2
- Other non cash transactions	101.2	104.5
Cash Flow from operations	428.0	469.2
- (Increase)/decrease in net current working capital	(29.2)	(27.4)
- Others	(98.0)	(88.5)
Net cash from operating activities (A)	300.0	353.3
- Capital expenditures20	(96.3)	(104.6)
- Proceed from Pimaco divestiture	1.1	-
- Acquisition	(73.8)	-
- Others	(3.5)	(9.5)
Net cash from investing activities (B)	(172.5)	(114.1)
- Dividends paid	(94.7)	(110.2)
- Borrowings/(Repayments)/(Loans)	(5.0)	32.5
- Share buy-back program & Liquidity program	(53.8)	(115.9)
- Others	(21.6)	1.5
Net cash from financing activities (C)	(175.2)	(192.1)
Net increase/ (decrease) in cash and cash equivalents net of bank overdrafts (A+B+C)	(47.6)	47.2
Opening cash and cash equivalents net of bank overdrafts	468.4	415.2
- Net increase / decrease in cash and cash equivalents net of bank overdrafts (A+B+C)	(47.6)	47.2
- Exchange difference	(5.6)	5.3
Closing cash and cash equivalents net of bank overdrafts	415.2	467.7

Reconciliation with Alternative Performance Measures

Adjusted EBIT Reconciliation	Q4 2022	Q4 2023	FY 2022	FY 2023
in million euros
EBIT	41.6	64.2	303.5	320.5
Rocketbook earnout and Djeep price adjustment (2022), Lucky Stationery and Rocketbook earnout (2023)	-		+0.7	(0.5)
Acquisition costs related to Inkbox (January 2022) and other acquisition costs (2023)	+1.6	+0.8	+4.4	+1.9
Restructuring costs including US Supply chain relocation plan & Inkbox reorganization	-	+3.3	-	+6.8
Ukraine operations impairment	-		+3.0
Unfavorable French pensions		+4.4		+4.4
Adjusted EBIT	43.2	72.7	311.7	333.1

Adjusted EPS Reconciliation	Q4 2022	Q4 2023	FY 2022	FY 2023
in euros
EPS	0.28	1.05	4.52	5.30
Rocketbook earnout and Djeep price adjustment (2022), Lucky Stationery and Rocketbook earnout (2023)	-	-	+0.06	(0.01)
Argentina hyperinflationary accounting (IAS29)	+0.03	+0.03	+0.18	+0.12
Acquisition costs related to Inkbox (January 2022) and other acquisition costs (2023)	+0.03	+0.01	+0.07	+0.03
Ukraine operations impairment	-	-	+0.06	-
Restructuring costs including US Supply chain relocation plan & Inkbox reorganization	-	+0.06	-	+0.12
Unfavorable French pensions	-	+0.08	-	+0.08
Virtual Power Purchase Agreement Greece	+0.23	-	+0.23	+0.06
Adjusted EPS	0.57	1.23	5.12	5.70

Net Cash Reconciliation	December 31, 2022	December 31, 2023
in million euros: rounded figures
Cash and cash equivalents (1)	+422.9	+477.3
Current borrowings (2)21	(63.0)	(91.9)
Non-current borrowings (3)	-	-
Net Cash Position (1) - (2) - (3)	359.9	385.4

Free Cash Flow Reconciliation	December 31, 2022	December 31, 2023
in million euros: rounded figures
Net cash from operating activities (1)	+300.0	+353.3
Capital expenditure (2)	(96.3)	(104.6)
Free Cash Flow Before Acquisition and Disposals (1) - (2)	203.7	248.7

Share Buyback Program

Société BIC	Number of shares acquired	Average weighted price (in €)	Amount (in €m)
January 2023	-	-	-
February 2023	185,526	61.57	11.4
March 2023	267,468	60.41	16.2
April 2023	70,480	58.16	4.1
May 2023	161,317	57.43	9.3
June 2023	356,658	54.47	19.4
July 2023	-	-	-
August 2023	150,048	57.35	8.6
September 2023	454,535	62.43	28.4
October 2023	77,100	60.08	4.6
November 2023	191,600	61.88	11.9
December 2023	36,990	62.66	2.3
Total	1,951,722	59.52	116.222

Capital and Voting Rights

As of December 31, 2023, the total number of issued shares of Société BIC is 42,270,689 shares, representing:

• 62,516,167 voting rights,
• 62,064,440 voting rights excluding shares without voting rights.

Total number of treasury shares held at the end of December 2023: 451,727.

Glossary

• Constant currency basis: Constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates.

• Organic change or Comparative basis: At constant currencies and constant perimeter. Figures at constant perimeter exclude the impact of acquisitions and/or disposals that occurred during the current year and/or during the previous year, until their anniversary date. All Net Sales category comments are made on a comparative basis. Organic change excludes Argentina Net Sales.
• EBITDA: EBIT before Depreciation, Amortization (excluding amortization of right of use under IFRS 16 standard) and impairment.
• Adjusted EBIT: Adjusted means excluding normalized items.
• Adjusted EBIT margin: adjusted EBIT as a percentage of Net Sales.
• Net Cash from operating activities: Cash generated from principal activities of the entity and other activities that are not investing or financing activities.
• Free Cash Flow: Net cash flow from operating activities less capital expenditures (capex). Free cash flow does not include acquisitions and proceeds from the sale of businesses.
• Net cash position: Cash and cash equivalents + Other current financial assets - Current borrowings - Non-current borrowings (except financial liabilities following IFRS 16 implementation).
  
  

Société BIC consolidated financial statements as of December 31, 2023, were approved by the Board of Directors on February 19, 2024. A presentation related to this announcement is also available on the BIC website (www.bic.com). The Group's Statutory Auditors have substantially completed their audit procedures on these consolidated financial statements and the audit report relating to the certification of these financial statements will be issued upon completion of the procedures required for the filing of the universal registration document. This document contains forward-looking statements. Although BIC believes its expectations are based on reasonable assumptions, these statements are subject to many risks and uncertainties. A description of the risks borne by BIC appears in the section, "Risks Management" in BIC's 2022 Universal Registration Document filed with the French financial markets authority (AMF) on March 30, 2023.

About BIC

A world leader in stationery, lighters and shavers, BIC brings simplicity and joy to everyday Life. For more than 75 years, the Company has honored the tradition of providing high-quality, affordable, essential products to consumers everywhere. Through this unwavering dedication, BIC has become one of the most recognized brands and is a trademark registered worldwide. Today, BIC products are sold in more than 160 countries around the world and feature iconic brands such as BIC Kids, BIC Flex^TM, BodyMark by BIC^TM, Cello^®, Djeep, Lucky Stationary, Rocketbook, Soleil^®, Tipp-Ex^®, Us. ^TM, Wite-Out^®, Inkbox, and more. In 2023, BIC Net Sales were €2,263 million. The Company is listed on Euronext Paris, is part of the SBF120 and CAC Mid 60 indexes and is recognized for its commitment to sustainable development and education. It has received an A- Leadership score from CDP. For more, visit www.bic.com or follow us on LinkedIn, Instagram, Twitter, or YouTube.

BIC's Q4 and FY2023 earnings conference call and webcast will be hosted by Gonzalve Bich, CEO, and Chad Spooner, CFO on Tuesday, February 20, 2024 at 8:30 AM CET time:

• To participate to the webcast: https://channel.royalcast.com/landingpage/bic/20240220_1/
• To participate to the conference call:

From France:	[phone]
From the UK:	[phone]
From the USA:	[phone]
Vocal access code:	"BIC"

Contacts

Investor Relations team [e-mail] Kimberly Stewart Head of Investor Relations [phone] [e-mail]

Isabelle de Segonzac Image 7, Press Relations contact [phone] [e-mail]

2024 Agenda

All dates to be confirmed

1st Quarter 2024 Results	April 23, 2024 (post market close)
2024 Annual General Meeting	May 29, 2024
2nd Quarter and 1st Half 2024 Results	July 31, 2024 (post market close)
3rd Quarter and 9 Months 2024 Results	October 23, 2024 (post market close)

¹ Subject to the May 29, 2024, AGM approval - Based on 42,270,689 shares excluding treasury shares as of the record date
² See market assumptions page in Appendix
³ Excluding Argentina net sales due to hyperinflationary context
⁴ Above the initial >€200 million objective
⁵ Others include income tax paid and pensions contribution
⁶ Including +€2.6 million in 2023 and -€2.1 million in 2022 related to capital expenditures payable change
⁷ Includes in 2023 €100 million of share buyback for cancellation and €16.2 million of free shares to be granted (long term incentives)
⁸ Inkbox, Rocketbook & Djeep en 2022
⁹ Year to date December 2023: IRI
¹⁰ Year to date December 2023: NPD
¹¹ Year to date December 2023: IRI, estimated 70% market coverage
¹² Year to date December 2023: Circanan (IRI)
¹³ Year to Date December 2023: IRI, Nielsen
¹⁴ Year to Date December 2023: IRI
¹⁵ Year to Date December 2023: Nielsen
¹⁶ Euromonitor and BIC estimates
¹⁷ includes +13.5 pts from Argentina at constant currency and -11.5 pts from ARS devaluation
¹⁸ includes +5.5 pts from Argentina at constant currency and -4.8 pts from ARS devaluation
¹⁹ Corrected to take into account the Virtual Power Purchase Agreement accounting in 2022
²⁰ Including +€2.6 million in 2023 and -€2.1 million in 2022 related to capital expenditures payable change
²¹ Excluding financial liabilities following IFRS16 implementation
²² Includes in 2023 €100 million of share buyback for cancellation and €16.2 million of free shares to be granted (long term incentives)