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BIC: ACQUISITION OF INKBOX, THE LEADING BRAND OF HIGH QUALITY SEMI-PERMANENT TATTOOS

·8-min read

ACQUISITION OF INKBOX, THE LEADING BRAND OF HIGH QUALITY SEMI-PERMANENT TATTOOS

Acquisition will make BIC a leader in the "Do-It-Yourself" Skin Creative industry

A fast-growing digitally native brand with outstanding growth track record

27 million USD (24 million euros1) Net Sales in 2021, doubled in size over the last two years

Robust Direct-To-Consumer (DTC) Business Model with strong brand awareness and unique partnerships with famous artists and influencers

0.8 million active customers2, mostly Generation Z female with a strong interest in self-expression

Over 60% Gross Profit Margin, driven by in-house, made-to-order manufacturing

A landmark acquisition for the Human Expression division, and a further step in BIC's transformation into a fast-moving consumer-centric company

Adds to BIC's growing portfolio of vibrant and innovative brands

Reinforces BIC's e-commerce omnichannel capabilities by adding a leading DTC brand to our existing digital platform eco-system

A transaction consistent with BIC's Horizon plan use of cash policy

65 million USD (57 million euros1) upfront payment with a deferred consideration based on Inkbox's future Net Sales and profitability growth

"Consumers today crave newness, desire creative freedom, and embody authenticity. Inkbox's visionary founders, brothers Tyler and Braden Handley, have created a way to address the young generation's desire for fluid self-expression. Unlocking the body as a canvas, they have built a highly successful business that sets the standard for the semi-permanent tattoo market." said Gonzalve Bich, BIC's Chief Executive Officer. "For BIC, Inkbox's acquisition is a further step in our Do-It-Yourself Skin Creative strategy. It provides a unique opportunity to grow our Human Expression division at a much more significant scale and lead the emerging fast-growing Do-It-Yourself Skin Creative market. I am thrilled to welcome Inkbox's intensely creative and entrepreneurial team as part of the BIC community and look forward to working with Tyler and Braden to build the next chapter of Inkbox and BIC's successful journey together."

"Today's youth embrace freedom of expression to an extent not seen before. Our tattoos enable them to style their look with their ever-evolving identity. We're excited that an internationally recognized brand like BIC understands this and believes in our ethos of supporting and celebrating identity," said Tyler Handley, co-founder, and CEO of Inkbox. "Beyond our shared commitment to creative expression, BIC is the ideal partner to help Inkbox achieve its full scale-up potential, notably through accelerated international expansion and operational efficiencies."

Clichy, France – 18 January 2022 – BIC announces today that it has signed an agreement to acquire 100% of the outstanding shares of Inkbox, a leading direct-to-consumer semi-permanent tattoo company headquartered in Toronto, Canada. The transaction is structured with an upfront payment of 65 million USD (57 million euros) and a deferred consideration based on Inkbox's future sales and profitability growth. The acquisition is contingent upon fulfilling certain customary conditions. The closing is expected before the end of Q1 2022.

A LANDMARK ACQUISITION FOR THE HUMAN EXPRESSION DIVISION, AND A FURTHER STEP IN BIC'S TRANSFORMATION INTO A FAST-MOVING CONSUMER-CENTRIC cOMPANY

For the last 75 years, BIC® has met consumer needs and desires with high quality, simple, and affordable products and has become one of the most recognized global consumer goods brands. With the launch of its Horizon plan in 2020, BIC evolved its Stationery Business to "Human Expression," going beyond traditional writing instruments into Creative and Digital Expression to meet changing consumer demand and accelerate growth.

As consumer attitudes shift towards self-expression, individuality, and creativity, the acquisition of Inkbox will expand BIC's offerings in the Do-It-Yourself Skin Creative category, which already includes BIC BodyMark, the temporary tattoo marker. Following on from the successful integration of Rocketbook, the smart reusable notebook brand acquired in November 2020, Inkbox further enhances BIC's existing portfolio of recognized consumer products, where different brands address diverse types of consumer groups. With its unique ability to customize, Inkbox further strengthens BIC's DTC business and reinforces existing digital and social media engagement capabilities.

This acquisition will elevate BIC to a leadership position in the Do-It-Yourself Skin Creative industry. This fast-growing category is powered by the increasing desire of young consumers to be more fluid with their appearance and express themselves by using their bodies as a changeable canvas. In the US today, more than 20% of the 13 to 45 years old consumers are either buyers or interested in buying Do-It-Yourself Skin Creative products3. Driven by the increasing frequency of purchase and product innovation, the category4 is expected to exceed 1.5 billion USD in 2031, exhibiting growth at 13%+ CAGR.

Inkbox: A FAST-GROWING DIGITALLY NATIVE COMPANY WITH A ROBUST BUSINESS MODEL AND BRAND PROPOSITION

Created in 2015 by Tyler and Braden Handley, Inkbox doubled its size over the last two years and reached 27 million USD (24 million euros) sales in 2021. Shipping hundreds of thousands of tattoos a week to more 80 than countries, with 67% of sales in North America, Inkbox had a Gross Profit margin exceeding 60% in 2021, and management expects to be EBITDA positive in 2024.

The 0.8 million active customers5 are primarily Generation Z females willing to showcase their uniqueness with interest in Fashion, Beauty, and Travel. Through Inkbox, these consumers can create their own designs or choose from a wide range of exclusive tattoos created by artists. In 2021, a freehand tattoo marker was added to the product range, allowing consumers to draw their tattoos directly on their skin or help a friend. As Inkbox continues to innovate, an online subscription service will be launched in 2022.

Inkbox supports an increasing community of tattoo artists and develops limited-edition drops in collaboration with celebrity artists and brand partners. They partner with social media influencers to amplify brand awareness and increase consumer engagement. The most recent collaborations include an officially licensed collection by popular K-Pop Group BTS, and new creative collaborations with the Estate of Jean-Michel Basquiat and the "InstaPoet" Rupi Kaur. Their successful DTC model builds on a robust social media engagement strategy. Inkbox has 1.5 million followers on Instagram and is ranked the 12th largest beauty brand on TikTok.

Inkbox's success is driven by a unique and sustainable consumer-centric model. The high-quality semi-permanent tattoos are designed and manufactured on-demand, in-house. Easy to apply, they last one-to-two weeks and use a patented, natural plant-based ink formula. BIC is the ideal partner to help the company achieve its full scale-up potential, through accelerated international development, primarily in Europe and Latin America, extended online presence through different e-commerce platforms and the potential expansion into retail distribution. The joining of companies will provide new options for consumers, from those looking to test out permanent tattoo designs, to a new image of message for a night out.

Inkbox will continue to run as an independent subsidiary of BIC, allowing its team to preserve its unique and creative culture.

* *

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Contact

Sophie Palliez-Capian
VP, Corporate Stakeholder Engagement
+33 1 45 19 55 28
+ 33 87 89 3351
Sophie.palliez@bicworld.com

Albane de La Tour d’Artaise
Senior Manager, Institutional Press Relations
+ 33 1 45 19 51 51
+ 33 7 85 88 19 48
Albane.DeLaTourDArtaise@bicworld.com



Michèle Ventura
Senior Manager, Investor Relations
+ 33 1 45 19 52 98
Michele.ventura@bicworld.com



Isabelle de Segonzac
Image 7
+ 33 6 89 87 61 39
isegonzac@image7.fr

Forward-looking Statement

This document contains certain forward-looking statements concerning SOCIETE BIC and Inkbox. Such forward-looking statements represent trends or objectives and cannot be construed as constituting forecasts regarding the future SOCIETE BIC's results or any other performance indicator. Forward-looking statements in this document include but are not limited to financial projections and estimates and their underlying assumptions.
Although BIC believes its expectations are based on reasonable assumptions, investors are cautioned that these forward-looking statements are subject to numerous various risks, whether known or unknown and uncertainties and other factors, including currency fluctuations, which may be beyond BIC's control and could cause actual results to differ materially from those anticipated in these forward-looking statements. A description of the risks borne by BIC appears in the section "Risks" in BIC's 2020 Universal Registration Document filed with the French financial markets authority (AMF) on April 01, 2021. Any information relating to past performance contained herein is not a guarantee of future performance. Nothing herein should be construed as an investment recommendation.

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 Cello®, BIC FlexTM, Lucky Stationery, Us. TM, Soleil®, Tipp-Ex®, Wite-Out®, Djeep, Rocketbook and more. In 2020, BIC Net Sales were 1,627.9 million euros. 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 received an A- Leadership score from CDP. For more, visit about.bic.com or follow us on LinkedIn, Instagram, Twitter, or YouTube.

ABOUT INKBOX

Inkbox creates beautifully produced, artist-designed, impermanent tattoos that last 1-2 weeks, fading as the skin naturally regenerates. Since its inception in 2015, millions of people from more than 150 countries around the world have worn Inkbox tattoos as style accessories to express their identity and test drive permanent tattoo ideas before going all in. With a growing catalog of more than 10,000 designs, the Freehand Tattoo Marker, and a Custom tattoo platform used to bring any idea to life, Inkbox now ships tens of thousands of tattoos every week. It has also come to be an important avenue of creative expression for many of today's most respected tattoo artists, who now count on it as a way to build their brand and supplement their income. Collaborations with contemporary artists like BTS, Post Malone, Keith Haring, and Rupi Kaur have looked to the body as a canvas, creating a new promotional category of "skin merch." Headquartered in downtown Toronto, where it operates the permanent tattoo studio Inside Out, Inkbox now employs 150+ people across Canada, Japan, and the United States. For media inquiries, please email press@getinkbox.com, or visit inkbox.com/pages/our-story.

1 14 January 2022 ECB EURO/USD rate: 1.1447
2 Last 24 months
3 BIC BodyMark Post-Launch Test – US, JUL 2020 (Ipsos)
4 Temporary tattoo markers and decals, henna tattoos and semi-permanent self apply tattoos. Exclude permanent tattoos – BIC Internal Estimates.
5 Last 24 months

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