Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — H1 2021 Earnings Presentation
34 slides from Societe Bic Sa's earnings presentation, Jul 28, 2021
Slide 1: BIC First Half 2021 Results
BIC FIRST HALF 2021 RESULTS July 28, 2021 1
Slide 2: H1 2021 Key Takeaways
H1 2021 KEY TAKEAWAYS Solid results, driven by Net Sales growth in all divisions: • Flame for Life performance boosted by an exceptional start to the year in US Pocket and Utility Lighters, which we don’t expect to repeat in the second half, as well as robust growth in Latin America and the successf
Slide 3: Q2 & H1 2021 Key Financial Figures
Q2 & H1 2021 KEY FINANCIAL FIGURES € NET SALES ADJUSTED EBIT ADJUSTED EPS FREE CASH NET CASH Margin % FLOW(3) POSITION Q2 2021 Q2 2021 Q2 2021 Q2 2021 505.7 M€ 105.6 M€ 1.55€ 67.7 M€ Change at CC(1) +26.8% 20.9% +22.0% Change at CB (2) 366.7M€ +23.9% End of June 2021(4) H1 2021 H1 2021 H1 2021 H1 20
Slide 4: H1 2021 Net Sales Growth on a Comparative Basis
H1 2021 NET SALES GROWTH ON A COMPARATIVE BASIS BIC’s main countries EUROPE NORTH AMERICA LATIN AMERICA ASIA AND ROW* Mexico 80% growth on a comparative basis H1 2021 / H1 2020 60% Brazil Cello United States 40% Group Italy France Spain 20% ROW UK Canada Australia 0% 100 M€ The bubble size is repres
Slide 5: Category Snapshot
CATEGORY SNAPSHOT* HUMAN EXPRESSION FLAME FOR LIFE BLADE EXCELLENCE Stationery Market Evolution Lighters Market Evolution Shaver Market Evolution Total Market BIC share Total Market BIC share Market BIC share (value) (pts) (value) (pts) (value) (pts) +0.3 France -6.6% -3.0 France -0.5% 0.0 France +6
Slide 6: Focus on H1 2021 US Lighter Performance
FOCUS ON H1 2021 US LIGHTER PERFORMANCE Market Trends(1) BIC Sell-in (Estimates) Pocket Lighters 155 7.0% 7 5.5% 7 Of which 8 June prebuy 2020 and Of which May EZ Reach 33 2021 Pocket Utility -2.0% -1.0% 100 Lighter YTD June 2020 YTD June 2021 BIC Pocket Market Value BIC Value Lighters sell-out in H
Slide 7: Inflation in Raw Material and Sea Freight Cost
INFLATION IN RAW MATERIAL AND SEA FREIGHT COST PLASTICS METALS SEA FREIGHT Average cost per container +198% +163% +147% +69% +44% +35% +15% +18% janv-19 mai-19 sept-19 janv-20 mai-20 sept-20 janv-21 mai-21 janv-19 mai-19 sept-19 janv-20 mai-20 sept-20 janv-21 mai-21 France to US Greece to Greece to
Slide 8: H1 2021 Net Sales Evolution
H1 2021 NET SALES EVOLUTION +18.2% +22.5% -7.2% +3.0% -0.1% 916.7 775.8 - 56.6 24.6 1.1 171.7 FX impact -56.6 M€ In M€ BRL -11.3 USD -37.9 MXN -0.6 RUB UAH -3.3 JPY -0.3 ZAR +0.3 INR -1.2 AUD +1.3 Other -3.6 H1 2020 Net Sales Change on a FX impact Perimeter impact Argentina H1 2021 Net Sales as repo
Slide 9: Q2 2021 Net Sales Evolution
Q2 2021 NET SALES EVOLUTION +20.7% +23.9% -5.5% +2.2% +0.1% 505.7 418.9 9.9 1.1 - 22.9 98.7 FX impact -22.9 M€ In M€ BRL -1.8 USD -21.3 MXN +1.5 RUB UAH -1.3 CAD +0.5 ZAR +0.7 INR -0.4 AUD +0.6 Other -1.4 Q2 2020 Net Sales Change on a comparative FX impact Perimeter impact Argentina Q2 2021 Net Sale
Slide 10: Category Financial Performance
CATEGORY FINANCIAL PERFORMANCE HUMAN EXPRESSION FLAME FOR LIFE BLADE EXCELLENCE 60% Organic Net Sales Adjusted EBIT Margin 30% Organic Net Sales Adjusted EBIT Margin Organic Net Sales Adjusted EBIT Margin 50% Net Sales at constant currencies Net Sales at constant currencies Net Sales at constant cur
Slide 11: H1 2021 Key Components of Change in Adjusted EBIT
H1 2021 KEY COMPONENTS OF CHANGE IN ADJUSTED EBIT (aEBIT) 12.0% 18.1% aEBIT MARGIN aEBIT MARGIN + 8.8 pts - 0.8 pts -2.0 pts -1.6 pts +1.7 pts Price & Mix: +1.4 pts Raw Materials: +0.6 pts FX: -1.1 pts H1 2020 Adjusted EBIT Change in GP * Operating leverage from Increase in Brand Increase in Freight
Slide 12: Q2 2021 Key Components of Change in Adjusted EBIT
Q2 2021 KEY COMPONENTS OF CHANGE IN ADJUSTED EBIT 16.1% 20.9% aEBIT MARGIN aEBIT MARGIN +8.6 pts - 1.7 pts - 2.8 pts +2.6 pts -1.9 pts Price & Mix: + 1.1 pts Raw Materials: +1.2 pts FX: - 0.3 pts Q2 2020 Adjusted EBIT Change in GP * Operating leverage from Net Increase in Brand Support Increase in F
Slide 13: Q2 & H1 2021 Profit and Loss Account
Q2 & H1 2021 PROFIT AND LOSS ACCOUNT In million euros Q2 2020 Q2 2021 H1 2020 H1 2021 Net Sales 418.9 505.7 775.8 916.7 Gross Profit 188.8 261.8 371.2 473.9 EBITDA* 92.8 155.1 115.6 382.1 Adjusted EBIT* 67.5 105.6 92.9 166.1 H1 2021 non-recurring items: • Sale of Clichy Headquarters: 167.7 M€ Non-re
Slide 14: Capex – Depreciation & Amortization
CAPEX – DEPRECIATION & AMORTIZATION 250 1.1 0.9 0.8 200 0.9 Other Stationery 16% 21% 150 0.6 0.7 2021 H1 CAPEX: 30 M€ 99 100 0.5 83 Shavers 27% Lighters 36% 49 49 50 44 0.3 30 0 0.1 FY 2020 H1 2020 H1 2021 CAPEX Depreciation & Amortization CAPEX to D&A Ratio 14
Slide 15: Working Capital
WORKING CAPITAL Inventories by category: Other Products December 2% BIC Shavers In million euros June 2020 2020 June 2021 22% Total Working 648.3 458.0 535.6 Capital Of which inventories 484.9 379.0 443.0 Stationery 50% Of which Trade and other 517.1 409.6 531.0 receivables Of which Trade Lighters a
Slide 16: 30 June 2021 Net Cash Position
30 JUNE 2021 NET CASH POSITION In million euros Operations Net Cash From Operating activities +134.0 M€ 7.2 80.9 230.3 1.2 4.4 366.7 96.3 177.3 15.7 30.3 183.9 December 2020 Operating cash Change in CAPEX Proceeds from Acquisitions Dividend Share buyback Net cash from Others June 2021 Net Net Cash f
Slide 17: Revised 2021 Market Assumptions
REVISED 2021 MARKET ASSUMPTIONS* LIGHTERS STATIONERY SHAVERS (pocket) Slight increase (vs flat to High-single digit decrease EUROPE Flat to slight increase slight increase) (vs. flat) Mid-single digit increase Low-single digit increase Low to mid-single digit NORTH AMERICA (vs. low to mid-single dig
Slide 18: 2021 Main Net Sales, Adjusted EBIT Margin and Free Cash Flow Drivers
2021 MAIN NET SALES, ADJUSTED EBIT MARGIN AND FREE CASH FLOW DRIVERS Organic Growth New businesses Line Extensions & RGM Volumes Djeep, Rocketbook, New Products Market Share Gains (Price and Blade excellence Promotions) Net Sales Flat Gross Profit Margin Improved Adjusted EBIT Margin Increase in Bra
Slide 19: 2021 Outlook Update
2021 OUTLOOK UPDATE1 Given first half performance and current market assumptions and without any substantial market deterioration during the second half, we upgrade our Net Sales outlook and now expect to deliver +9% to +11% total Net Sales growth at constant currencies. The balance of the year will
Slide 20: Thank You
THANK YOU 20
Slide 21: Appendix
APPENDIX 21
Slide 22: H1 2021 Net Sales Breakdown
H1 2021 NET SALES BREAKDOWN BY CATEGORY BY GEOGRAPHY North America Other products 44% 2% Human Europe Blade Expression 32% Excellence 36% 22% Asia & Oceania (Including India) Latin America 4% Middle East & Africa 14% Flame for Life 6% 40% 22
Slide 23: Main Exchange Rate Evolution vs. Euro
Q2 & H1 2021 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average rates Average rates % of sales H1 2020 H1 2021 % of change % of sales Q2 2020 Q2 2021 % of change US Dollar 43% 1.10 1.21 -8.7% US Dollar 43% 1.10 1.20 -8.5% Brazilian Real 5% 5.91 6.35 -6.9% Brazilian Real 6% 5.41 6.48 -16.5% Mexi
Slide 24: Group Quarterly Figures
GROUP QUARTERLY FIGURES Restated for Unallocated Group Costs In million euros Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Net Sales 415.4 544.8 488.0 501.2 1 949.4 357.0 418.9 441.9 410.1 1 627.9 411.0 505.7 YoY actual changes 0.0% +0.2% +1.8% -1.9% 0.0% -14.1% -23.1% -9.
Slide 25: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY In million euros Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Europe Net Sales 122.8 167.9 143.5 124.7 558.9 119.1 138.6 147.2 112.3 517.3 125.2 166.8 YoY actual changes -1.2% -4.6% +4.0% +2.7% -0.1% -3.0% -17.4% +2.6% -9.9% -7.5% +5.2%
Slide 26: Human Expression
HUMAN EXPRESSION Restated for Unallocated Group Costs In million euros Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Net Sales 148.3 252.5 204.3 169.3 774.4 148.3 252.5 204.3 169.3 774.4 126.9 166.9 161.3 120.5 575.6 131.1 202.2 YoY actual chan
Slide 27: Flame for Life
FLAME FOR LIFE Restated for Unallocated Group Costs In million euros Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Net Sales 149.7 169.9 161.9 197.4 679.0 149.7 169.9 161.9 197.4 679.0 121.0 147.3 171.1 178.7 618.1 174.5 192.9 YoY actual changes -2.0
Slide 28: Blade Excellence
BLADE EXCELLENCE Restated for Unallocated Group Costs In million euros Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Net Sales 109.0 115.5 114.9 123.5 463.0 109.0 115.5 114.9 123.5 463.0 102.0 98.6 102.9 100.6 404.2 96.4 104.0 YoY actual changes +12.
Slide 29: Other Products
OTHER PRODUCTS Restated for Unallocated Group Costs In million euros Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Net Sales 8.3 7.0 6.9 10.9 33.1 8.3 7.0 6.9 10.9 33.1 7.0 6.1 6.6 10.3 30.0 9.0 6.6 YoY actual changes -40.0% -56.3% -37.8% -16.9% -38.
Slide 30: Unallocated Costs
UNALLOCATED COSTS Restated for Unallocated Group Costs In million euros Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 EBIT -12.6 -37.6 -14.9 -21.5 -86.7 -18.8 -20.1 -14.5 -30.5 -84.0 146.8 -16.5 Adjusted EBIT -12.6 -10.6 -10.0 -15.9 -49.1 -17.0 -17.2 -13.2 -21.0 -68.4 -20.0
Slide 31: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of June 30, 2021, the total number of issued shares of SOCIÉTÉ BIC is 45,395,857 shares, representing: • 66,774,710 voting rights • 66,255,030 voting rights excluding shares without voting rights Total number of treasury shares held at the end of June 2021: 519,680. 31 3
Slide 32: Glossary
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
Slide 33: Market Data Sources
MARKET DATA SOURCES Sources: market share data in value Stationery • France: IRI YTD 20-JUN-21 – Modern Trade only • UK: IRI YTD 12-JUN-21 - Modern Trade only • US: NPD YTD JUN- 21 - est. 95% market coverage • Brazil and Mexico: Nielsen YTD MAY-21 - Modern Trade only, est. 16% market coverage for Br
Slide 34: Disclaimer
DISCLAIMER This document contains forward-looking statements. Although BIC believes its estimates 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 Management of BIC’s Universal Regi