ANALYST & INVESTOR DAY BIC Advertising & Promotional Products The Advertising & Promotional Products industry

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

Agenda

History and definition A structured BUT fragmented industry A large and growing business A cost effective advertising medium

History and definition

1789
George Washington commemorative buttons are the first known Promotional Products of the history

Late 19th Century in Coshocton, Ohio

Jasper Meek, a newspaper owner His objectives: taking on job printing, to use his printing press between editions

M. Cantwell, owner of a shoe shop His objectives: build store traffic and increase name recognition to ultimately increase sales

The product: a burlap book bag with a simple advertising message Buy Cantwell Shoes distributed to children visiting Cantwell shop

The first Advertising and Promotional Products was born

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History and definition

2010
Items used used to to advertise advertise and and promote promote a a product, product, a a service service or or a a company company program program Items

Advertising specialties Premiums Incentives Business gifts Awards Prizes Commemoratives Imprinted/decorated items

History and definition

2010
Advertising and and Promotional Promotional Products Products are: are: Advertising

Distributed individually

Sold as part of advertising and marketing programs

Agenda

History and definition A structured BUT fragmented industry A large and growing business A cost effective advertising medium

A structured BUT fragmented industry

Distribution model flow

A four-part four-part system system traditional traditional distribution distribution model model A

Supplier

Distributor

Company

End-user

A structured BUT fragmented industry

1
Supplier Distributor Company End-user

Manufacturing

Assembly

Sourcing

Multiple printing applications

Products are are sold sold blank blank or or imprinted imprinted Products
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A structured BUT fragmented industry

2
Supplier Distributor Company End-user

Traditional outside sales team Fulfillment programs, Door-to-door sales, Friends and family

Direct Marketing WEB, Catalogs, Samples, Telesales

Special markets Hotel & lodging, Pharmaceutical, Tobacco, Government

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A structured BUT fragmented industry

3
Supplier Distributor Company

4
End-user

Brand awareness Employee relations & events Tradeshows Public relations New customer acquisition Dealer/distributor programs New product/service introduction Employee service awards Not-for-profit programs Internal promotions Safety education/incentive Customer referral Marketing research

End-user End-user End-user End-user End-user

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A structured BUT fragmented industry

Multiple sales & marketing strategies

unique sales & marketing strategies

Distributor
Direct marketing

Company Property GM

End-user

Supplier

Distributor

Traditional outside sales team

Company Event manager

End-user

Distributor
Special markets

Company Procurement

End-user

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A structured BUT fragmented industry

Worldwide industry associations servicing the trade

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A structured BUT fragmented industry

Est. total number of Suppliers and Distributors
7,150 Suppliers Suppliers 7,150 40,700 Distributors Distributors 40,700

CANADA Suppliers Distributors USA Suppliers Distributors 3,500 21,000 OCEANIA Suppliers LATIN AMERICA Suppliers Distributors 400 1,600 Distributors 420 1,800 830 6,300 Suppliers Distributors EUROPE 2,000 10,000

Source: BIC estimates

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A structured BUT fragmented industry

Worldwide competitive market overview - Suppliers
In million Euros
CANADA PF Polyconcept Spector Sanford USA Broder Bros. PF Polyconcept Ennis LATIN AMERICA Maxi Distribuciones Sun Line Promoline 11 10 9 313 283 221 OCEANIA Penline Logo-Line Image Collection 4 3 3 12 3 2 EUROPE PF Polyconcept Mid Ocean Group Inspirion 261 150 65
Estimated 2008 net sales

Source: PPAI 2008 figures / BIC Estimates / Polyconcept - 1 Euro = 1.38 USD

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A structured BUT fragmented industry

A fragmented industry: the US example 2008 suppliers estimated market share

Others
4% 5%

S&S Activewear Staton Corporate & Casual 3M Promotional Markets Ash City Bodek & Rodhes SanMar
75%

4% 3% 3% 1% 1% 1% 1% 1%

Ennis Polyconcept North America Border Bros & Co BIC Graphic US + Norwood Promotional Products

Source: PPAI BIC estimates

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A structured BUT fragmented industry

Worldwide competitive market overview - Distributors
In million Euros
CANADA Accolade Reaction Group Genumark Staples/Corporate Express USA Staples/Corporate Express Proforma Group II Communications 324 178 148.5 OCEANIA Corporate Express LATIN AMERICA Articulos Exclusivos JA Publigraphics Miguel Angel Distribuciones 9.9 3.8 1.4 OfficeMax Copy Cat Promotions 38.4 1.1 1 29 15 13 Promoplus Proderam Dimo EUROPE 12 8 7
Estimated 2008 net sales

Source: ASI, PPAI, and BIC estimates - 1 Euro = 1.38 USD

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A structured BUT fragmented industry

A fragmented industry: the US example 2008 distributors estimated market share

1%

2%

Others Adventures in Advertising National Pen Corp. HALO Cintas Geiger 4 Imprint US Group II Communication BDA Proforma Staples Promo Products

89%

Source: PPAI

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A structured BUT fragmented industry

Est. total number of Distributor sales representatives
202,400 Distributor Distributor sales sales representatives representatives 202,400

CANADA: 15,000 USA: 150,000

EUROPE: 30,000

LATIN AMERICA: 4,500

OCEANIA: 2,900

Source: BIC estimates

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A structured BUT fragmented industry

2008 North American sales by product category
Per sonnal 2%

Automoti ves Texti l es 2% El ectr oni cs 2% Sti cker s 2% Computer s 2% Magnets 2% Games 2% Buttons/ Badges 2% Housewar es 3% Spor ti ng Goods 3% Other s 3% Awar ds 4% Desk/ Of f i ce/ Busi ness Accessor i es 5% 2%

Cl ocks and Watches Food 1% 1%

Wear abl es 31%

Wr i ti ng Instr uments 9% Cal endar s Dr i nkwar e 6% 8% Bags 7%

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Source: PPAI

A structured BUT fragmented industry

2008 North American sales by program
Marketing Research 1.69% Others 2.10% Customers Referral 4.43% Safety Education / Incentive 4.64% Brand Awareness 12.59%

Internal Promotions 5.01% Employees Relations and Events 11.87% Not-For-Profit Programs 6.26%

Employee Service 6.28% Tradeshows 11.48%

New Product/Service Introduction 7.09%

Dealer / Distributor Programs 7.78%

Public Relations 10.56%

New Customer / Accunt Generation 8.22% Source: PPAI

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A structured BUT fragmented industry

Top buyers of promotional products Education Financial Not-for-profit Healthcare Construction Trade & Professional Associations Real Estate Government Professionals: Doctors, Lawyers, CPAs, etc Restaurants & bars

Source: PPAI

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Agenda

History and definition A structured BUT fragmented industry A large and growing business A cost effective advertising medium
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A large and growing business

2008 estimated Distributor market size 25.3bn Euros 2008 estimated Supplier market size 13.9bn Euros

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7.6
7

4
2.9 1.8 0.6
Latin America Latin America

1.8 0.2
USA Europe Canada

0.3
Oceania

USA

Europe

Canada

Oceania

Source: PPAI and BIC estimates; 1 Euro = 1.38 USD

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A large and growing business

1989 2009 US Distributor industry sales in billion USD +6.1% annual growth rate (CAGR)
US Distributor Industry sales US GDP
19.2% 18.1% 14.7% 11.9% 7.7% 12.6% 19.5%

17.9 16.6 14.9 13.2 11.9 9.5 8.0 7.0 6.2 4.5 5.0 5.1 5.2

18.0 17.3 16.3 15.6

19.4 18.8

25.1%

18.1

14.6

13.3% 11.0% 5.9% 4.6%

2.3% 1.8%

4.3% 4.1% 3.5%

End of the Internet bubble

-5.6% -7.3%

-6.9%

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009 (est.)

Sub-prime crisis

-19.5%

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009 (est.)

Source: PPAI, Bureau of Economic Analysis

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Agenda

History and definition A structured BUT fragmented industry A large and growing business A cost effective advertising medium

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A cost effective advertising medium

One of the most important advertising support
In billion USD 2007 selected media advertising sales / U.S. market figures

19.4

18.9 17.8

14.6

7.4

7.3

3.4

2.9

Promotional Products

Point of purchase

Cable TV

Yellow Pages

Couponing

Out-of-home

Business magazines

Products Placement

Source: PPAI research

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A cost effective advertising medium

A growing advertising support
U.S. market figures - selected media advertising sales growth

+14%

1999-2004 CAGR
+12%

2004-2007 CAGR

+ 8% +7%

+5% +4% +3% +2% +3% +3% +2%

+5%

+3% +2%

Internet

Promotional Products

Magazines

Outdoor

TV

Newspapers

Radio

Source: PPAI research

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A cost effective advertising medium

Flexible Memorable Effective

84% 42% 62%

Of recipients of advertising and promotional specialties can identify the advertiser

Of recipients of advertising and promotional specialties have

a more favorable impression of the advertiser

Of recipients of advertising and promotional specialties did business with the advertiser after receiving an item

Source: 2008 Advertising Specialty Institute research

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A cost effective advertising medium

One of the best cost per impression among other media
USD

Billboards

0.003
Calendars 0.003

Advertising Specialties Radio

0.004

Drinkware Other non wearables Wearables (shirts)

0.004 0.005

0.005

Cable TV

0.007

0.005

Newspaper

0.019

Desk accessories Other wearables

0.007

Prime Time TV

0.019

0.016

Magazine

0.033

Awards

0.021

Source: 2008 Advertising Specialty Institute research

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Dislaimer

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 31 March 2009.

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