Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — Q1 2020 Earnings Presentation
28 slides from Societe Bic Sa's earnings presentation, Apr 23, 2020
Slide 1: First Quarter 2020 Results
FIRST QUARTER 2020 RESULTS April 23, 2020 1
Slide 2: Difficult start to the year worsened by COVID-19 outbreak
Difficult start to the year worsened by COVID-19 outbreak ▪ Challenging market trends in our three categories ▪ Market share maintained or increased in almost all regions ▪ Continued decline in US Pocket Lighters market ▪ COVID-19 outbreak affecting all geographies and categories ▪ Solid Net Cash po
Slide 3: Q1 2020 Group Financial Performance
Q1 2020 GROUP FINANCIAL PERFORMANCE EPS NET SALES NORMALIZED IFO NET CASH Change on a NIFO Margin % POSITION comparative basis % 0.56€ (-35.6%) 357.0 M€ 25.3 M€ NORMALIZED EPS 143.2M€ -13.8% 7.1% 0.60€ (-32.6%) 3
Slide 4: Q1 2020 Highlights on Stationery
Q1 2020 MARKET & BIC PERFORMANCE HIGHLIGHTS ON EUROPE** U.S.** STATIONERY 2018 2019 Mar-20 0.5% 2018 2019 Feb-20 0.3% BIC market 0.0% share Net Sales +0.1 pts Q1 126.9 M€ -14.8 %* -0.2% BIC market share +0.5 pts NIFO Margin -0.8% Q1 0.8 M€ 0.7 % • Market outperformance in Europe -4.0% • Solid perfor
Slide 5: Q1 2020 Highlights on Lighters
Q1 2020 MARKET & BIC PERFORMANCE HIGHLIGHTS ON U.S. Non-Refillable Pocket Lighter** LIGHTERS 2018 2019 2020 YTD 2020 4 Weeks BIC total -0.8% -0.9% market share -5.0% Net Sales -5.9% -5.7% -6.5% -6.0% +0.2 pts -8.10% Q1 121.0 M€ -18.7 %* Total US Convenience U.S. Utility Lighter** NIFO Margin 2018 20
Slide 6: Q1 2020 Highlights on Shavers
US MARKET PERFORMANCE** Q1 2020 2018 2019 Mar-20 HIGHLIGHTS ON SHAVERS 0.9% -1.4% -1.2% -1.6% -2.2% -2.3% -2.9% Net Sales -3.8% -4.2% Total One Piece Refillable Q1 102.0 M€ -5.9 %* BIC’s US MARKET SHARE / One Piece segment** NIFO Margin In value (in pts) BIC Market Share change - YTD BIC Market Shar
Slide 7: Q1 2020 Net Sales Evolution
Q1 2020 NET SALES EVOLUTION Change in Argentina Change on Change FX impact* Perimeter** impact*** a comparative In million euros Q1 2019 Q1 2020 as reported (in points) (in points) (in points) basis*** Q1 Net Sales 415.4 357.0 (14.1)% (0.4) +0.1 (0.0) (13.8)% 2020 -1.4 M€: In M€ US Lighters USD +3.9
Slide 8: Q1 2020 From Net Sales to IFO
Q1 2020 FROM NET SALES TO IFO BIC Group Change on a Change on a In million euros Change as constant comparative Q1 19 Q1 20 reported currency basis* basis* Net Sales 415.4 357.0 (14.1)% (12.9)% (13.8)% Gross Profit 211.3 182.4 (13.7%) Normalized 54.6 25.3 (53.6%) Income from Operations Income from 5
Slide 9: Q1 2020 Key Components of Normalized Income from Operations Margin
Q1 2020 KEY COMPONENTS OF NORMALIZED* INCOME FROM OPERATIONS MARGIN + 0.2 pts 0.2% - 0.2 pts -0.2% - 6.0 pts Q1 2020 13.1% Of which -5.0 pts due to 7.1% Net Sales Decrease Q1 2019 Normalized* IFO Change in cost of production Brand support OPEX and other expenses Q1 2020 Normalized* IFO margin margin
Slide 10: Q1 2020 From NIFO to Group Net Income
Q1 2020 FROM NIFO TO GROUP NET INCOME In million euros Q1 2019 Q1 2020 Normalized* IFO 54.6 25.3 Restructuring costs** - 2.3 IFO 54.6 23.0 Finance revenue/costs +0.8 +11.8 Income before Tax 55.4 34.8 Income tax expense (16.1) (9.7) Effective tax rate 29.0% 28.0% Normalized Net Income Group Share 40.
Slide 11: Working Capital
WORKING CAPITAL In million euros BIC Group Stationery 245.8 In million euros March 2019 March 2020 Total Working Capital 674.6 612.1 Lighters 141.6 Of which inventories 508.7 499.0 Shavers 103.6 Of which Trade and other receivables 509.4 472.0 Of which Trade Other Products 8.1 and other payables (13
Slide 12: Net Cash Position
NET CASH POSITION In million euros Operations -15.9 12.3 22.7 -7.8 -2.7 - 12.2 Net Cash 146.9 From Operating activities 143.2 +34.9 M€ December 2019 Net Operating cash flow Change in working CAPEX Net cash from Share Acquisitions* Others (mainly FX) March 2020 Net Cash Cash Position capital and othe
Slide 13: Conclusion: Our priorities for the balance of the year
CONCLUSION Our priorities for the balance of the year ▪ Continue to secure the health and safety of all our stakeholders ▪ Serve our customers to ensure the availability of BIC products for all consumers, everywhere, notably during the Back-to-School season ▪ Pro-actively manage Working Capital and
Slide 14: Thank You
THANK YOU
Slide 15: Appendix
APPENDIX
Slide 16: Q1 2020 Net Sales by Geography
Q1 2020 NET SALES BY GEOGRAPHY Q1 Net Sales -13.8% on a comparative basis -3.0% EUROPE -15.6% NORTH AMERICA -26.4% LATIN AMERICA -13.5% MIDDLE EAST & AFRICA -19.5% OCEANIA & ASIA (Including India) 16
Slide 17: Q1 2020 Net Sales Breakdown
Q1 2020 NET SALES BREAKDOWN BY CATEGORY BY GEOGRAPHY Other products 1% Europe NAM Shavers Stationery 33% 40% 29% 36% OCEANIA & ASIA (Including India) 6% MEA LATAM 6% 15% Lighters 34% 17
Slide 18: Group Quarterly Figures
GROUP QUARTERLY FIGURES Restated for IAS 29 In million euros Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Net Sales 415.4 543.9 479.5 511.0 1,949.8 415.4 544.8 488.0 501.2 1,949.4 357.0 YoY actual changes -12.2% -9.2% +1.6% +2.7% -4.5% 0.0% +0.2% +1.8% -1.9% 0.0% -14.1% YoY chan
Slide 19: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY Restated for IAS 29 In million euros Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Europe 124,3 176,1 138,0 121,4 559,7 122,8 167,9 143,5 124,7 558,9 119,1 Net Sales YoY actual changes -5,5% -2,8% +0,2% +1,5% -1,8% -1,2% -4,6% +4,0% +2,7% -0,1
Slide 20: Stationery
STATIONERY Restated Restated for Unallocated Group Costs for IAS 29 In million euros Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 Net Sales 151.8 249.5 200.2 170.4 771.9 148.3 252.5 204.3 169.3 774.4 148.3 252.5 204.3 169.3 774.4 127.0 YoY actual changes
Slide 21: Lighters
LIGHTERS Restated Restated for Unallocated Group Costs for IAS 29 In million euros Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 Net Sales 152.7 165.0 163.8 204.3 685.8 149.7 169.9 161.9 197.4 679.0 149.7 169.9 161.9 197.4 679.0 121.0 YoY actual changes -1
Slide 22: Shavers
SHAVERS Restated for Restated for Unallocated Group Costs IAS 29 In million euros Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 Net Sales 97.0 113.5 104.4 123.1 438.0 109.0 115.5 114.9 123.5 463.0 109.0 115.5 114.9 123.5 463.0 102.0 YoY actual changes -15.
Slide 23: Other Products
OTHER PRODUCTS Restated for Unallocated Group Costs In million euros Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 Net Sales 13.8 15.9 11.1 13.2 54.0 8.3 7.0 6.9 10.9 33.1 8.3 7.0 6.9 10.9 33.1 7.0 YoY actual changes -31.4% -25.8% -19.2% -12.3% -23.3% -40.
Slide 24: Unallocated Costs
UNALLOCATED COSTS Restated for Unallocated Group Costs In million euros Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 IFO* -12.6 -37.6 -14.9 -21.5 -86.7 -18.8 Normalized IFO* -12.6 -10.6 -10.0 -15.9 -49.1 -17.0 * see glossary 24
Slide 25: Main Exchange Rate Evolution vs. Euro
FY 2019 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average rates % of sales Q1 2019 Q1 2020 % of change US Dollar 39% 1.14 1.10 2.99% Brazilian Real 8% 4.28 4.90 -12.73% Mexican Peso 6% 21.80 22.00 -0.88% Argentina Peso 2% 44.45 67.78 -34.43% Canadian dollar 3% 1.51 1.48 2.00% Australian dollar
Slide 26: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of March 31, 2020, the total number of issued shares of SOCIÉTÉ BIC was 45,532,240 shares, representing: 67,009,836 voting rights, 66,429,842 voting rights excluding shares without voting rights. Total number of treasury shares held at the end of March 2020: 579,994 26
Slide 27: Glossary
GLOSSARY ▪ Constant currency basis Constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates. ▪ Organic growth or on a Comparative basis At constant currencies and constant perimeter. Figures at constant perimeter exclude the impact
Slide 28: 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 2019 “Universa