FULL YEAR 2008 RESULTS PRESENTATION

Investor Relations Department: +33 (0)1 45 19 52 26 www.bicworld.com

FULL YEAR 2008 RESULTS FULL YEAR 2008 RESULTS PRESENTATIONPRESENTATION

February 11, 2009

2

Agenda

• 2008 Group performance and category highlights Mario Guevara

• 2008 Consolidated results Jim DiPietro

• Focus on recent acquisitions Mario Guevara

• 2009: gain market shares and protect

cash generation Mario Guevara

3

Group 2008 Key figures

Net Sales: 1,420.9 million euros Income from Operations: 209.6 million euros

14.7%

17.4%

15.1%

17.6%

2007 2008

IFO Margin Normalized IFO Margin

EPS: -14.5% Free Cash Flow after acquisitions

3.51

3.00

2007 2008

Dividend proposal to the AGM (May 14, 2009): 1.35 euros (equal to 2007)

116143

2007 2008

In euros In million euros

-2.4%

+2.4%

As reported At constant currencies

4

Gro

up

•In a challenging economic environment Net sales growth in line with guidanceNormalized IFO margin impacted by FX, higher

manufacturing costs due to lower production volumes and BIC Graphic sales decline

Normalized* IFO growth1

-10.4%

Normalized*IFO margin

15.1%

Net Sales growth1

Shav

ers

•BIC triple-blade one-piece shavers still a key growth driver•BIC® Soleil® System performance in the lower range

of our initial market share expectations -47.0% 4.1%+3.9%

Light

ers

•Good performance in Europe, due to price increases•North America affected by the economic slowdown•Continuous good performance in Latin America

-9.5% 29.2%+0.8%

Stat

ione

ry •Low-single digit growth in Consumer business •Maintained market share in Europe and North America,

despite declining markets•Good performance in Latin America•Promotional imprinted business experienced accelerated

sales decline in 4th Quarter

-3.8% 14.1%-0.4%

+2.4%

1: at constant currencies*: see glossary

2008 key figures and highlights

5

Change at constant currencies

2008 net sales evolution by geographies

-5.5%

+4.7%

-5.6%

+3.5%

-0.9%

-7.1%

+18.2%

+1.0%

+8.5%

+5.8%

-2.4%

+10.8%

+5.2%

+0.6%

+4.2%

+15.3%

+5.9%

-7.8%

+3.4%

-0.1%

EuropeFY08: +4.2%

North America& Oceania

FY08: -1.6%

Latin America

FY08: +9.6%

Middle East, Africa & Asia

FY08: +0.5%

GroupFY08: +2.4%

Q1 Q2 Q3 Q4

6

673.3714.9Net Sales

20082007In million euros

90.5108.0IFO


-3.9%

-1.4%

+4.7%

-2.3%

Q108 Q208 Q308 Q408

15.1%

13.4%

15.1%

14.1%

2007 2008

Net Sales Income From Operations

2008 change at constant currencies: -0.4%

IFO margin

Normalized IFO margin

IFO margin

Stationery in 2008

7

Stationery in 2008

13.4% IFO margin in 2008, compared to 15.1% in 200714.1% normalized IFO margin

• Sustained Consumer business IFO margin offset by the decrease in Graphic business profitability.

Net sales

Con

sum

erG

raph

icLow- single digit growth in 2008 Low back-to-school sell-through impacted re-orders in Q4Latin America performed well all year and grew high-single digitsSouthern hemisphere Latin American countries experienced a good back-to-school sell-in in the 4th Quarter

Full year net sales decreased high-single digitPromotional imprinted product business (BIC Graphic) strongly impacted by the continuous decline of the writing instrument promotional business in the US and the depressed economic environmentBoth Europe and North America experienced an accelerated sales decline during the 4th quarter as a result of economic downturn’s impact on corporate year-end gifts and promotional spending

Income From Operations

8

-0.2%

+3.5%

+4.6%

-4.7%

Q108 Q208 Q308 Q408

29.2%

32.1%

2007 2008

2008 change at constant currencies: +0.8% IFO margin

376.9390.3Net Sales


110.0125.3IFO


Net Sales Income From Operations

Lighters in 2008

9

Lighters in 2008

Europe• Positive price impact in 2008• 4th Quarter sales better than initially anticipated

- very good performance in Italy and Greece (increased brand support and phasing impact)

- strong success of our sleeves limited editions• 9 months after the implementation of the child-resistant mandatory standard

- Almost all lighters without child-resistant marking on the package have disappeared from the European market

- For 2009, the key goal will be to ensure that all lighters declared conform and really compliant with the EU decision

North-America• US pocket lighter market affected by

- the continuous decline of cigarette retail sales- the uncertainty of the overall economic situation- Store traffic slowdown and inventory reductions

• Despite challenges: increase in market shares• Q4 sales have continued to be affected by the negative economic environment

Latin America• Good performance throughout the year, thanks to price increases and distribution gains

2008 IFO margin -2.9 points to 29.2% • Increased brand support linked to the implementation of the child-resistant regulation

in Europe • Higher manufacturing costs due to lower production volumes

Net sales


10

Shavers in 2008

-0.3%

+1.0%

+11.2%

+3.5%

Q108 Q208 Q308 Q408

4.1%

8.2%

2007 2008

Net Sales Income From Operation

264.3266.7Net Sales


10.922.0IFO


2008 change at constant currencies: + 3.9% IFO margin

11

Shavers in 2008

2008 overall shaver market flat in the US and in key European countries Acceleration of innovation One-piece

• BIC triple-blade one-piece shavers continued to be a key growth driver- 42.5% of BIC’s total one-piece shaver sales in 2008

Refillable• BIC® Soleil® System performance 18 months after its launch in the lower range

of our initial market share expectations due to aggressive competitive environment

In 2009, we should benefit from the launch of new products• The one-piece 4-blade BIC® Soleil® Bella™ in the US • The new 4-blade BIC Soleil® System shaver with individually moveable blade technology,

in the US• The BIC® Easy triple-blade, the first “all in one” shaver including one handle and 6 cartridges, in

Europe• The BIC® Soleil® System Shimmer™ in Continental Europe

4.1% IFO margin compared to 8.2% in 2007• Negative impact of USD/EUR exchange rate (€ production for $ markets)

• Higher manufacturing costs due to lower production volumes

Net sales


12

Agenda

• 2008 Group performance and category

highlights Mario Guevara



• 2009: Gain market shares and protect


13

-10.4%-15.5%214.3253.5Normalized IFO*

-13.1%-18.1%209.6255.8Income from Operations

-2.0%-6.3%669.9715.0Gross Profit

+2.4%-2.4%1,420.91,456.1Net Sales

Change at constant

currencies*Change20082007BIC Group

In million euros

*: see glossary

2008: From Net Sales to Normalized IFO

14

-0.4-0.5

+ 0.2

FY07 FY07 normalized Gross Margin Brand support Other operatingexpenses

FY08 Normalized Exceptionals FY08 IFO margin

Gross Profit Margin:

-2.0 ptsChild-resistant lighter advertising campaign and Graphic brand support in Q1 were offset by lower shaver advertising expenses for the full year

4.7 million euros cost related to closure of Stypen and Foutain Inn factories and real estate gains

- Raw Material impact offset by price increases - Lower production volumes- Decline of Graphic sales

- FX: -0.7 pts

2008 Income From Operations margin

17.6%

15.1%

14.7%

17.4%

*: see glossary

15

2008 From IFO to Group Net Income

3.003.51EPS

48,357,72449,244,579Number of shares outstanding net of treasury shares

144.9172.9Group Net Income

- 71.4- 87.7Income tax

216.3261.2Income before Tax

33.0%33.6%Tax rate

-3.3

10.0

209.6

2008

- 5.8Finance costs

11.2Interest income

255.8IFO

2007BIC GroupIn million euros

2008 Share repurchase program: 707,272 shares (25.7M€)

Lower average cash investment position along with lower interest rates

Reduction of interest expenses

16

2008 CAPEX

33 31 36 32 3242

37 3943

39 45

11

41

11

2003 2004 2005 2006 2007 2008

7070

90*

7177

83

*Shelton real estate acquisition (€ 11m)

1st Half

2nd Half

In million euros

17

+27143116Free Cash Flow after acquisitions

-12-81- 69Net CAPEX

+12-1- 13Acquisitions

+15144129Free Cash Flow before acquisitions

+27225198Net Cash From Operating Activities

Change20082007BIC GroupIn million euros

2008 Cash Flow

Close management of inventories and account receivables

Atchison acquisition

18

• 2008 Group performance and category highlights Mario Guevara





Agenda

19

Stationery consumer

Promotional Products

January 2009: BIC announces the acquisition of 40% of Cello® Pens writing Instrument business with a call option to increase stake to 55% in 5 years

Transaction price: INR 7.9 billion (cc. USD161m/cc. €124m), financed mostly through USD denominated bank loans

EPS accretive from 2009

December 2008: BIC announces the signing of an agreement to acquire 100% of Antalis Promotional Products (APP) for ~33 million euros

Focus on recent acquisitions

20

Total stationery: ~ INR 90billion (1.4 billion Euros)

Total writing instruments: ~ INR 28billion(440 million Euros)

79% 15%

6%

79% 15%

6%

OthersPaper and Notebooks

Pens

Others

Pencils

63%31%

6%

63%31%

6%

WritingInstruments

Cello Pens Estimate & Published Research – 2007 – Retail value

Mid to high-single digit annual growth

India’s writing instrument market overview

63.6 INR = 1 euro (January 20, 2009)

21

5%

25%

46%

24%5%

25%

46%

24%

37%

63%

cc.3

cc. 17

India US

Total pen market: ~ INR 22billion (345 million Euros)

Low but increasing per capita pen consumption Highly fragmented distribution network

Retail price point A market leader with market share twice the nearest competitor

P E N S

Lexi, Flair, Linc, Add Pens, Montex, GM Pens, Luxor, Today’s, Rotomac

Modern Retail

StationeryShop

Traditional "Mom &Pop" stores

General Stores

< 5 INR

INR 5-10

INR 10-15

> 15 INR

10%

62%

16%

12%

63.6 INR = 1 euro (January 20, 2009)

India’s writing instrument market overview: focus on pens

22

4,100

2,300

02-03 07-08

37% share of the Indian Pen market

90% unaided awareness

Strong growth - High Profitability

The leading Indian writing instrument brand

The widest distribution network in India

Cello Pens are distributed nationwide through

731,000 outlets all across India

a network of 42 super-stockists and 4,200 distributors

12% 5 years sales CAGR

Approximately 30% FY07-08 EBIT margin

Revenue (INR Million)

Appr. 5,000 employees

1 bn pens per year (2 industrial sites )

P E N S

Cello Pens

23

N°1 in Europe

(15% market share)N°2

in North America(13% market share)

N°1 in Latin America

(24% market share)

N°1 in India

(37% market share)

N°2 in Oceania

(16% market share)

P E N S

N°1 in Africa

Writing instrument market shares

BIC + Cello Pens: an enhanced growth profile for both companies

24

Supplement BIC® product range with select Cello® Pens

products in other countries

Strengthen Cello® Pens’ position in India by adding BIC products and BIC Brand to its domestic

portfolio

P E N S

Extend BIC stationery business to one of the most dynamic writing instrument

markets in the world

Partner with the N°1 brand

in India

Develop emerging segments in India (Correction, Marking

and Mechanical Pencils)

Sharing best practices in new

product development and

manufacturing know-how

Strong benefits for both companies

25

The promotional products industry

Large and Long-term

growth market

Highly diverse & fragmented

product category

15 billion USD estimated manufactured value*• Promotional products represent approximately 13%

of companies total communication spendingcc. 4% annual average growth during the last 20 yearsCyclical business strongly impacted by the economic downturnA fragmented market both for supply and demand

• Large number of small orders

Approximately 20 product categories, most of them with less than 10% of the total marketDecreasing trend for writing instrumentsGrowing share of wearable, bags, electronics suppliers, sport & leisure and special designs

*: Excluding Asia Pacific

27%

7%

6%

6%6% 7%

10%

31%

Wearables

Writt ingInst.Bags

Drinkware

OfficebusinessCalendars

Awards

Others

27%

7%

6%

6%6% 7%

10%

31%

Wearables

Writt ingInst.Bags

Drinkware

OfficebusinessCalendars

Awards

Others

APP: reinforce BIC leadership position in the promotional products industry

26

2 complementary business models

Vertical integration• N°1 branded supplier in imprinted writing

instruments and lighters with strong positions in its markets (Europe, US, Latin America)

• Excellence in order entry and imprinting• Perceived as specialized player

Horizontal integration• European supplier with a wide range

of distributors • A complete range of non-imprinted of products• Specialized in sourcing

A complete range of products and services

Imprinted and non-imprinted approach

with 2 separate entities

Global sourcing capacitiesPotential leverage

in North America and Latin America

N°1 globalbranded

full service supplier

APP: reinforce BIC’s leadership position in the promotional products industry

27

• 2008 Group performance and category

highlights Mario Guevara





Agenda

28

Products Brand…S BalanceSheet

Simple

Reliable

Inventive

At the right Price

Worldwide leadership

Stationery10% market share

Lighters35% market share

Shavers20% market share*

of one-piece in USA and Europe

N°2

N°1

N°2

*one-piece shavers in major markets (US, Europe, Latin America)

143 M€Free Cash Flow after

Acquisitions in 2008

210.6 M€Net Cash Position at the end of

2008

2009: our strengths

29

Historical and close

relationship with the trade

Iconicproducts

Strong brandsWorldwide

leadership positions

N°2 in North America

N°1 in Latin America

N°1 in Europe

Strong positions in major market

segments

N°1 in mechanical pencils

N°1 ball-pen classic

N°1

in correction

Consumer trust for more than 50

years

“A brand I grew up with” Innovation

24 million BIC stationeryproducts bought every day worldwide

More than 3m outlets

worldwide

Stationery Consumer: “Quality @ a BIC price”

30

Roller - BIC® Triumph™

Permanent Marker - BIC® Marking™ Color

Ball Pen - BIC® Cristal® Large

Mechanical Pencil – BIC® AI™

Index Dispenser

BIC® Ecolutions™ range

Colour felt pensBIC® Kids Colour & Erase

Correction Tape - Tipp-Ex® Easy Refill

Stationery Consumer in 2009

31

19691959

Stationery Consumer in 2009: 2 major marketing events

32

40 years for the 4 colors50 years for

Stationery Consumer in 2009: 2 major marketing events

33

Integrated distribution network

30%35%

> 60%> 60%

Europe worlwide North America Latin America

Brand awarenessUS Disposable Pocket Lighter

8%

10%

86%

Competitor B

Competitor A

BIC

Market leadership

Estimated market shares (in value)

Leverage our points of

differentiation

Pocket lighters in markets where BIC is present

Consumer preference Safety – Quality – Consumer education

vs. market average

More than 50 automatic quality controls

•Dedicated Customer Support Teams in all countries

•Largest distribution network

Lighters: N°1 branded lighter manufacturer

34

North America Europe

Worldwide

Europe

Latin America

Lighters in 2009: continue to offer more value-added products

35

Continue to offer consumers the choice for Quality and Innovation at the best price for a complete range of products

• Classic one-piece single-blade• One-piece twin-blade • One-piece triple-blade for men• One-piece and refillable triple- and 4-blade shavers for women

1USD

Single1 D

BIC 2 D

BIC3 D

Comfort 3 D

BIC Comfort 3Advance D

SilkyTouch D

Comfort Twin D

Soleil D

Soleil System

BIC Bella 4B D

Shavers: a comprehensive range of quality products from classic to 4 blades

36

3 blades men One-piece – France (€)

Women’s Refillable – US (USD)3&4 blades women One-piece – US (USD)

2.41

0.57

1.49

0.700.78

1.26

1.28

BIC 3

Private Label

BIC Ecolution

BIC Comfort 3Advance

Schick Xtreme 3

Gillette Sensor 3

Gillette Mach 3

2,38

2,39

1,94

1,001,02

1,42

1,451,51

Private Label

BIC Comfort 3

BIC Soleil Original

Xtreme 3 Comfort +

Sensor 3

BIC Bella 4B

Quattro Disposable

Venus Disposable

1,63

2,31

2,45

BIC Soleil System

Venus System

Quattro System

Non promoted price per volume – January 2009

•A complete and well price-positioned range of one-piece triple-blade products for men

•A strong franchise with products offering a better value in the women’s segment

Shavers: quality and innovation at a reasonable price

37

Nor

th-A

mer

ica

Euro

peLa

tin A

mer

ica

New BIC® Ecolutions™: the 1st BIC® shaver with a bioplastic handle

New BIC® Easy: the 1st “all in one” shaver: 1 handle + 6 cartridges

New BIC® Soleil Bella with 4 individually moveable blades

An extended and innovative 3-4 blades One-piece range

New BIC® Comfort 3 for women

Shavers in 2009

38

New BIC® Soleil refillable with 4 individually moveable blades

Nor

th-A

mer

ica

Euro

peA more competitive quality 4 blade refill range for women in the USA

BIC® Soleil Shimmer™ refillable triple blades

Shavers in 2009

39

In a market slowdown, our target is to:

gain shares in all categories

protect cash generation

2009: objectives

Investor Relations Department: +33 (0)1 45 19 52 26 www.bicworld.com

AppendixAppendix

41

48,357,724

0.66

31.9

46.1

45.8

46.5

158.3

356.5

Q408

48,429,501

0.88

42.5

63.9

63.5

62.0

168.7

363.9

Q308

48,531,424

0.94

45.5

68.4

62.9

62.9

188.3

392.4

Q208

48,357,724

3.00

144.9

216.3

214.3

209.6

669.9

1,420.9

FY08

48,620,706

0.52

25.1

37.8

38.2

38.2

154.7

308.1

Q108

49,244,579Number of shares (1)

3.51EPS

172.9Group net income

261.2Income before Tax

253.5Normalized IFO*

255.8Income from Operations

715.0Gross Profit

1,456.1Net Sales

FY07BIC GroupIn million euros

*: see glossary(1) Weighted average number of shares net of treasury shares

Consolidated P&L

42

15.1%12.9%17.5%16.9%12.4%17.4%Normalized IFO margin

+1.6%-0.1%+3.0%+4.5%-1.8%+3.3%YoY changes on a comparative basis*

17.0%

62.0

+4.2%

-0.6%

363.9

Q308

13.0%

46.5

-0.1%

-1.3%

356.5

Q408

14.7%16.0%12.4%17.6%IFO margin

62.9

+5.8%

-1.6%

392.4

Q208

38.2

-0.9%

-6.7%

308.1

Q108

209.6

+2.4%

-2.4%

1,420.9

FY08

255.8IFO

+4.7%

+0.6%

1,456.1

FY07

YoY changes at constant currencies*

YoY actual changes

Net Sales

BIC GroupIn million euros

*: see glossary

Group Quarterly figures

43

14.1%10.5%15.7%17.7%11.1%15.1%Normalized IFO margin

14.8%

25.5

-1.3%

-6.3%

172.2

Q308

10.9%

16.7

-3.9%

-6.3%

152.7

Q408

13.4%15.8%11.1%15.1%IFO margin

32.1

+ 4.7%

- 2.9%

202.6

Q208

16.2

- 2.3%

- 8.6%

145.8

Q108

90.5

-0.4%

-5.8%

673.3

FY08

108.0IFO

-0.6%

-3.1%

714.9

FY07


YoY actual changes

Net Sales


Stationery Quarterly figures

*: see glossary

44

30.4%

29.0

+3.5%

-1.0%

95.6

Q308

27.3%

28.5

-0.2%

-0.3%

104.5

Q408

29.2%

110.0

+0.8%

-3.4%

376.9

FY08

32.3%

30.4

+ 4.6%

- 2.9%

94.4

Q208

26.7%

22.0

- 4.8%

- 10.2%

82.3

Q108

125.3IFO

32.1%

+3.7%

-1.1%

390.3

FY07

IFO margin


YoY actual changes

Net Sales


Lighters Quarterly figures

*: see glossary

45

11.7%

8.3

+11.2%

+6.3%

70.6

Q308

3.6%

2.5

+3.5%

+2.3%

69.0

Q408

4.1%

10.9

+3.9%

-0.9%

264.3

FY08

-1.1%

-0.8

+ 1.0%

- 6.0%

66.9

Q208

1.5%

0.9

- 0.4%

- 6.3%

57.8

Q108

22.0IFO

8.2%

+9.2%

+5.1%

266.7

FY07

IFO margin


YoY actual changes

Net Sales


Shavers Quarterly figures

*: see glossary

46

+36.2%

+33.1%

25.5

Q308

+15.6%

+16.7%

30.2

Q408

+28.8%

+26.4%

106.5

FY08

+ 36.6%

+ 31.5%

28.5

Q208

+ 30.5%

+ 27.1%

22.2

Q108

+37.6%

+35.5%

84.2

FY07


YoY actual changes

Net Sales


Other Products Quarterly figures

*: see glossary

47

Stationery

Lighters

Shavers

Other Products

47%

27%

19%

7%

47%

27%

19%

7%

FY 08 Net Sales breakdown by category

48

FY 08 Net Sales breakdown by geography

*: at constant currencies

Europe:+4.2%*

North America& Oceania:

-1.6%*

Latin America:+9.6%*

33%

41%

20%

6%

33%

41%

20%

6%

MEAA: +0.5%*

49

Miscellaneous

• 2008 Share buyback program:– End of December 2008

• Number of shares bought: 707,272• Total amount in euros: 25.7 million euros

• Capital evolution:– Authorized share capital on December 31, 2008:

48,556,031 shares– Shares canceled on February 10, 2009: 100,000– Authorized share capital on February 10, 2009:

48,460,811 shares

50

Glossary

• At constant currencies: Constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates

• Comparative basis: at constant currencies and constant perimeter

• Normalized IFO: normalized means excluding restructuring and real estate gains

.

51

2009 Agenda

Conference Call October 21st, 2009 3rd Quarter 2009 Results

Conference Call August 5th, 2009 2nd Quarter 2009 Results

Meeting (BIC headquarters) May 14th, 20092008 Shareholders’

Meeting

Conference Call April 22nd, 2009 1st Quarter 2009 Results

All dates to be confirmed

52

Disclaimer

This document contains forward-looking statements. Although BIC believes its expectations are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties. A description of the risks borne by BIC appears in section “Risks and Opportunities” of BIC “Reference Document” filed with the French financial markets authority (AMF) on April 3rd, 2008

Documents

FULL YEAR 2008 RESULTS PRESENTATION