Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — H1 2019 Earnings Presentation
31 slides from Societe Bic Sa's earnings presentation, Jul 31, 2019
Slide 1: Second Quarter and First Half 2019 Results
SECOND QUARTER AND FIRST HALF 2019 RESULTS July 31, 2019
Slide 2: H1 Highlights & Category Spotlights
H1 HIGHLIGHTS & CATEGORY SPOTLIGHTS Gonzalve BICH 2
Slide 3: First Half 2019 Key Messages
FIRST HALF 2019 KEY MESSAGES Targeted Maintaining or Brand 2019 Outlook « BIC 2022- growing market Support unchanged Invent the share in most investments Future » geographies in a plan on track challenging environment BIC - First Half 2019 Presentation 3
Slide 4: Q2 & H1 2019 Financial Performance
Q2 & H1 2019 FINANCIAL PERFORMANCE Net Sales Normalized IFO Normalized EPS Net Cash Change on a Margin Position comparative basis Q2 2019 Q2 2019 Q2 2019 544.8 M€ 98.5 M€ H1 2019 1.55 € -1.3% 18.1% -11.0 M€ H1 2019 H1 2019 H1 2019 960.2 M€ 153.1 M€ 2.43 € -1.6% 15.9% 4
Slide 5: Category Spotlights
Category Spotlights Stationery Lighters Shavers Net sales Net sales Net sales Q2 252.5 M€ - 2.3 %* Q2 169.9 M€ - 0.1 %* Q2 115.5 M€ - 0.7 %* H1 400.8 M€ - 3.6 %* H1 319.7 M€ - 2.7 %* H1 224.5 M€ + 4.2 %* NIFO margin NIFO margin NIFO margin Q2 32.3 M€ 12.8 % Q2 58.7 M€ 34.5 % Q2 8.4 M€ 7.3 % H1 34.2
Slide 6: Consolidated Results
CONSOLIDATED RESULTS Jim DIPIETRO 6
Slide 7: Net Sales Evolution
Q2 & H1 2019 NET SALES EVOLUTION Change in Argentina Change on Change FX impact* Perimeter** impact*** a comparative In million euros Q2 2018 Q2 2019 as reported (in points) (in points) (in points) basis*** Q2 Net Sales 543.9 544.8 +0.2% +2.4 (1.0) +0.1 (1.3)% 2019 +12.8 M€: In M€ USD +11.1 BRL -0.7
Slide 8: Key Components of Normalized Income from Operations Margin
Q2 and H1 2019 KEY COMPONENTS OF NORMALIZED* INCOME FROM OPERATIONS MARGIN 21.8% -3.1 -1.0 +0.4 18.1% Q2 2019 Q2 2018 Normalized* IFO Change in cost of production Total brand support OPEX and other expenses Q2 2019 Normalized* IFO margin margin 19.6% -3.1 -1.2 +0.6 15.9% H1 2019 H1 2018 Normalized*
Slide 9: From NIFO to Group Net Income
H1 2019 FROM NIFO TO GROUP NET INCOME In million euros H1 2018 H1 2019 Normalized* IFO 188.2 153.1 Restructuring costs (transformation plan) - 27.0 Cello goodwill impairment in 2018 68.7 - IFO 119.5 126.1 Finance revenue/costs +5.8 (1.7) Income before Tax 125.3 124.4 Income tax expense (54.5) (34.8)
Slide 10: Working Capital
WORKING CAPITAL In million euros December 2018 June 2019 Total Working Capital 621.2 736.1 Of which inventories 449.2 494.8 Of which Trade 534.7 639.6 and other receivables Of which Trade (137.7) (151.0) and other payables INVENTORIES IN DAYS RECEIVABLES IN DAYS 188 178 186 71 74 67 June 2018 Decemb
Slide 11: Net Cash Position
NET CASH POSITION In million euros Operations +164.7 (85.1) (47.5) (155.2) Net Cash 161.5 From Operating activities (39.2) +79.6 M€ (1.8) (8.4) (11) December 2018 Operating cash Change in CAPEX Dividend Share buyback Haco industries Others June 2019 Net Net Cash flow working capital payment acquisit
Slide 12: Looking Ahead
LOOKING AHEAD Gonzalve BICH 12
Slide 13: Progress on BIC-2022 Invent the Future Plan
PROGRESS ON BIC-2022 INVENT THE FUTURE PLAN Effectiveness Innovation Global Strategic Procurement BodyMark Temporary Tattoo Marker organization up and running BIC® Intensity Medium Felt-Pen Health, Safety & Environment processes centralized BIC® Soleil® Click 5 Project for a dedicated Support “Made
Slide 14: 2019 Outlook
2019 OUTLOOK NET SALES NORMALIZED IFO MARGIN We expect Group Net Sales We expect Normalized IFO margins to increase slightly to be between 16.5% and 18% on a comparative basis 14
Slide 15: Second Quarter and First Half 2019 Results
SECOND QUARTER AND FIRST HALF 2019 RESULTS
Slide 16: Appendix
APPENDIX
Slide 17: Net Sales by Geography
H1 2019 NET SALES BY GEOGRAPHY H1 Net Sales - 1.6% on a comparative basis EUROPE +0.2% NORTH AMERICA -2.3% DEVELOPING MARKETS -2.6% 17
Slide 18: H1 2019 Net Sales Breakdown
H1 2019 NET SALES BREAKDOWN BY CATEGORY BY GEOGRAPHY 2% Other products 30% 23% 42% 29% Europe Shavers Stationery Developing markets 33% Lighters 41% North America 18
Slide 19: Stationery Market Performances and BIC's Market Share
STATIONERY MARKET PERFORMANCES AND BIC’S MARKET SHARE Europe market U.S. market 0.2% +1.8% BIC market BIC market share share 0 pts +0.1 pts -1.2% -0.4% Dec 2018 May 2019 YTD Dec 2018 June 2019 YTD In Value Source: EU7 GFK MAY-2019 - 60% coverage (France, UK, Germany, Italy, Spain, Belgium, Greece /
Slide 20: US Market Performances and BIC's Market Share (Shavers)
SHAVERS US Market Performances and BIC’s Market Share Off-line Market Sales (YTD in value) BIC’s Market Share Change - One Piece Segment (YTD in value) 2.2% 2.8 3.0 1.9 2.0 1.4 0.7 0.9 0.9 1.0 -1.6% -1.6% -2.2% -3.1% -2.9% 0.0 -4.1% -4.1% -3.8% -3.8% -3.8% -4.7% -0.5 -0.2 -5.0% -1.0 -0.5 -0.5 -0.5 -
Slide 21: Main Exchange Rate Evolution vs. Euro
Q2 and H1 2019 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average rates Average rates % of sales Q2 2018 Q2 2019 % of change % of sales H1 2018 H1 2019 % of change US Dollar 40% 1.19 1.12 +5.9% US Dollar 40% 1.21 1.13 +7.1% Brazilian Real 6% 4.30 4.41 -2.5% Brazilian Real 7% 4.34 -4.5% 4.15 Mex
Slide 22: Group Quarterly Figures
GROUP QUARTERLY FIGURES Restated Restated for IFRS 15 for IAS 29 In million euros Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Net Sales 469.2 593.7 465.8 491.6 2,020.3 473.2 599.0 471.7 497.4 2,041.4 415.4 543.9 479.5 511.0 1,949.8 415.4 544.
Slide 23: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY Restated Restated for IFRS 15 for IAS 29 In million euros Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Europe 129.5 177.5 135.3 116.9 559.3 131.5 181.2 137.7 119.6 570.0 124.3 176.1 138.0 121.4 559.7 122.8
Slide 24: Stationery
STATIONERY Restated for IFRS 15 Restated for IAS 29 In million euros Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Net Sales 163.4 264.7 191.3 172.4 791.8 165.5 267.8 194.6 176.3 804.2 151.8 249.5 200.2 170.4 771.9 148.3 252.5 YoY actual change
Slide 25: Lighters
LIGHTERS Restated Restated for IFRS 15 for IAS 29 In million euros Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Net Sales 171.3 185.5 157.9 189.1 703.9 172.2 186.4 159.2 189.6 707.4 152.7 165.0 163.8 204.3 685.8 149.7 169.9 YoY actual changes
Slide 26: Shavers
SHAVERS Restated Restated for IFRS 15 for IAS 29 In million euros Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Net Sales 114.4 122.0 102.9 115.1 454.4 115.3 123.4 104.2 116.5 459.4 97.0 113.5 104.4 123.1 438.0 109.0 115.5 YoY actual changes -2
Slide 27: Other Products
OTHER PRODUCTS Restated for IFRS 15 In million euros Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Net Sales 20.1 21.4 13.7 15.0 70.2 20.2 21.5 13.7 15.0 70.4 13.8 15.9 11.1 13.2 54.0 8.3 6.9 YoY actual changes -3.2% -10.2% -20.4% -26.3% -14.5%
Slide 28: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of June 30, 2019, the total number of issued shares of SOCIÉTÉ BIC is 46,010,907 shares, representing: • 67,688,129 voting rights • 66,668,443 voting rights excluding shares without voting rights Total number of treasury shares held at the end of June 2019: 1 019 686. 28
Slide 29: 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 At constant currencies and constant perimeter. Figures at constant perimeter exclude or Comparative basis the impacts of acqu
Slide 30: 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 and Opportunities” of BIC “Regist
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