Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — Investor Presentation (August 2018)
116 slides from Societe Bic Sa's investor presentation, August 2018
Slide 1: Group Presentation for Investors August 2018
GROUP PRESENTATION FOR INVESTORS AUGUST 2018 GROUP PRESENTATION FOR INVESTORS
Slide 2: Group and Category Highlights
First Half 2018 GROUP AND CATEGORY HIGHLIGHTS GROUP PRESENTATION FOR INVESTORS
Slide 3: Financial Performance Q2 & H1 2018
Q2 & H1 2018 FINANCIAL PERFORMANCE Net Sales Normalized IFO Normalized EPS Net Cash Change on a Margin Position comparative basis Q2 2018 Q2 2018 Q2 2018 543.9 M€ 118.7 M€ H1 2018 1.99 € -2.3% 21.8% 55.1 M€ H1 2018 H1 2018 H1 2018 959.3 M€ 188.2 M€ 3.05 € -1.9% 19.6% GROUP PRESENTATION FOR INVESTORS
Slide 4: Category Spotlights
Q2 & H1 2018 CATEGORY SPOTLIGHTS Stationery Lighters Shavers Net sales Net sales Net sales Q2 249.5 M€ - 1.4 %* Q2 165.0 M€ - 4.5 %* Q2 113.5 M€ - 0.3 %* H1 401.3 M€ - 0.1 %* H1 317.7 M€ - 2.6 %* H1 210.5 M€ - 3.1 %* NIFO margin NIFO margin NIFO margin Q2 37.4 M€ 15.0 % Q2 63.3 M€ 38.4 % Q2 16.9 M€
Slide 5: Stationery Market Performances and BIC's Market Share
STATIONERY MARKET PERFORMANCES AND BIC’S MARKET SHARE Europe U.S. May 2018 0.2 2017 YTD % BIC market BIC market share share +0.5 pts - +0.4 pts 0.8 % -0.9% - 2017 June 2018 2.2 YTD % In Value Source: EU7 GFK MAY-2018 - 60% coverage (France, UK, Germany, Italy, Spain, Belgium, Greece/ US NPD YTD JUN-
Slide 6: US Market Performances and BIC's Market Share (Shavers)
SHAVERS US Market Performances and BIC’s Market Share Off-line Market Sales Q2 2018 (YTD in value) BIC’s Market Share Change - One Piece Segment (YTD in value) 2.2% 3.0 2.6 2.2 1.9 1.9 2.0 1.2 1.4 1.0 -1.6% -3.1% -2.8% -3.1% 0.0 -4.1% -4.1% -4.1% -3.4% -3.9% -0.5 -0.2 -5.0% -5.1% -1.0 -0.5 -0.4 -0.5
Slide 7: Net Sales by Geography
Q2 and H1 2018 NET SALES BY GEOGRAPHY Q2 NET SALES H1 NET SALES -2.3% on a comparative basis -1.9% on a comparative basis 1.7% EUROPE 0.8%EUROPE NORTH -0.7% NORTH AMERICA AMERICA -0.5% -8.5% DEVELOPING DEVELOPING MARKETS -6.3% MARKETS * 2017 figures restated from IFRS15 GROUP PRESENTATION FOR INVEST
Slide 8: Net Sales Evolution
Q2 and H1 2018 NET SALES EVOLUTION FX translation impact 599.0 -0.8% -2.3% -6.1% 543.9 -36 M€: Q2 USD -15M€ BRL -7M€ ARS -2M€ 2018 INR -2M€ MXN -4M€ RUB UAH - 2M€ Others -4M€ Q2 2017 Net Perimeter impact Change on a FX translation Q2 2018 Net Sales Sales* comparative basis impact 1072.3 -1.2% -1.9%
Slide 9: From Net Sales to Income from Operations
H1 2018 FROM NET SALES TO INCOME FROM OPERATIONS Change on a Change on a BIC Group Change as constant comparative In million euros H1 17* H1 18 reported currency basis* basis* Net Sales 1072.3 959.3 -10.5% -3.1% -1.9% Gross Profit 560.5 507.4 -9.5% Normalized Income 218.2 188.2 -13.7% from Operation
Slide 10: Key Components of Normalized IFO Margin
Q2 and H1 2018 KEY COMPONENTS OF NORMALIZED* INCOME FROM OPERATIONS MARGIN 22.9% +0.5 +0.2 -1.8 21.8% • Promotions and investments related to consumer and business Q2 development support accounted 2018 for in Gross Profit Margin : -0.1 • Advertising, consumer and trade support : +0.3 Q2 2017 Normali
Slide 11: From NIFO to Group Net Income
H1 2018 FROM NIFO TO GROUP NET INCOME BIC Group In million euros H1 2017* H1 2018 Normalized IFO 218.2 188.2 Restructuring costs related primarily to BIC Graphic -24.6 - Cello Goodwill Impairment - -68.7 IFO 193.6 119.5 Finance revenue/costs 0.0 5.8 Income before Tax 193.6 125.3 Income tax -58.1 -54
Slide 12: Working Capital
WORKING CAPITAL June 30, December June 30, BIC Group 2017(1) 31, 2017 (1) 2018 In million euros 215.9 Stationery 222.9 Total Working 730.8 580.0 695.3 Capital 131.9 Lighters 121.2 June Of which inventories 469.7 429.0 470.2 2018 105.8 June Of which Trade Shavers 107.4 2017 and other 615.3 477.1 574.
Slide 13: Net Cash Position
NET CASH POSITION In million euros Operations +197.7 -114.6 -51.6 -157.8 204.9 Net Cash From Operating activities +83.1 M€ -22.5 -1.0 55.1 December 2017 Operating cash Change in CAPEX Dividend Share buyback, Others June 2018 Net Cash flow working capital payment exercise of stock Position and others
Slide 14: 2018 Objectives
2018 OBJECTIVES NET SALES NORMALIZED IFO MARGIN We expect Group Net Sales to increase We expect Normalized IFO margins to be between between 17% and 18% +1 and +3% on a comparative basis, with all categories contributing to the growth GROUP PRESENTATION FOR INVESTORS 14
Slide 15: BIC in 2017
BIC IN 2017
Slide 16: Key Messages
KEY MESSAGES Strong Soft Brazilian performance in Cost of production economy Europe increase Selected Brand Support investments Inventory reduction in Operational expenses’ lighters and continued increase disruption in US wet shave market GROUP PRESENTATION FOR INVESTORS 16
Slide 17: Shareholders' Remuneration
SHAREHOLDERS’ REMUNERATION Proposal of 3,45 euros ordinary dividend per share In euros 6.89 6.20 5,57 6,89 5.57 5.32 5,13 5,48 3,51 3,00 3,15 5,00 4,29 3.40 3.45 3.45 2.50 2.85 2,85 3,40 2,601.80 2,56 1,35 1,40 1,90 2,201,80 1,35 38% 38% 45% 44% 44% 44% 46% 51% 51% 49% 56% 2005 2006 2007 2008 2009 2
Slide 18: Consolidated Results Full Year 2017
FULL YEAR 2017 CONSOLIDATED RESULTS GROUP PRESENTATION FOR INVESTORS
Slide 19: From Net Sales to EPS
2017 FROM NET SALES TO EPS Change as Change on a BIC Group In million euros 2016 2017 reported comparative basis Net sales 2,025.8 2 020.3 -0.3% +1.4% Gross profit 1,065.3 1 047.6 -1.7% Normalized IFO 409.1 400.9 -2.0% Income from operations 403.4 376.2 -6.7% Effective tax rate 30.0% 25.9% Net Incom
Slide 20: Net Sales Evolution 2017
2017 NET SALES EVOLUTION In million euros FX translation impact -15 M€ 1.4% -0.9% -0.8% +0.5% BRL: +8 M€ -0.3% ZAR: +2 M€ RUB + UAH: +2M€ Others: -2 M€ MXN: -3 M€ GBP : -3 M€ ARS: -4 M€ USD: -15 M€ Change on a comparative Perimeter impact Change on a constant FX translation impact Change as reported
Slide 21: Key Components of FY 2017 Normalized IFO Margin
KEY COMPONENTS OF FY 2017 NORMALIZED* INCOME FROM OPERATIONS MARGIN +0.4 20.6% -0.3 -0.2 20.2% -0.3 19.8% • Promotions and • Impact on Gross Profit: investments related +0.3 to consumer and • Impact in OPEX : +0.1 business development support accounted for in Gross Profit Margin : -0.7 • Advertising
Slide 22: From Income from Operations to Group Net Income
2017 From Income From Operations to Group Net Income In million euros FY 2016 FY 2017 Income From Operations 403.4 376.2 Finance revenue/costs 4.8 21.8 Income before Tax 408.2 398.1 Income tax -122.7 -103.0 Net Income From Continuing Operations 285.5 295.1 Net Income From Discontinued -35.8 -6.7 Ope
Slide 23: Working Capital 2017
2017 WORKING CAPITAL BIC Group In million euros December 2016 December 2017 Total Working Capital 642.1 582.1 194.9 Stationery 224.4 Of which inventories 468.1 429.0 2017 119.3 Lighters 121.3 2016 Of which Trade 483.1 476.7 and other receivables 99.3 Shavers 106.7 Of which Trade 118.7 125.5 and othe
Slide 24: Net Cash Position 2017
2017 NET CASH POSITION In million euros Operations 411.3 - 30.7 55.7 460.1 - 12.6 - 185.8 222.2 - 161.0 204.9 - 94.2 December 2016 Operating cash Change in CAPEX Disposal of BIC Others Net Cash before Dividend Share buyback, December 2017 Net Cash flow working capital Graphic in North Shareholder's
Slide 25: CAPEX – Depreciation & Amortization
2017 CAPEX – DEPRECIATION & AMORTIZATION In million euros 181 186 Others 15% 125 121 Stationery 107 112 37% 89 90 94 93 Shavers 63 53 75 77 72 75 81 27% 71 Lighters 2009 2010 2011 2012 2013 2014 2015 2016 2017 21% CAPEX D&A GROUP PRESENTATION FOR INVESTORS 25
Slide 26: Operational Results Full Year 2017
FULL YEAR 2017 OPERATIONAL RESULTS GROUP PRESENTATION FOR INVESTORS
Slide 27: Stationery
STATIONERY Net Sales growth on a comparative basis* +8.0% +9.1% +6.3% +4.0% +2.6% +4.6% +4.9% +3.4% +2.2% FY 2017 Net Sales -5.1% €791.8M Q1 Q2 Q3 Q4 FY Normalized* IFO margin FY 2017 NIFO 18.0% 16.0% 6.6% €66.5M 9.0% 9.4% 8.4% 7.3% 4.0% 5.8% 5.2% 3.6% 3.6% Q1 Q2 Q3 Q4 FY 2016 2017 Excl. Special bon
Slide 28: Stationery 2017 Market Trends and BIC's Performance
STATIONERY 2017 MARKET TRENDS AND BIC’S PERFORMANCE Canada (N°2) India – CELLO (N°1) Market (value): -2.2% Market (value): +15.4% Bic share 27.6% (Flat) BIC share: 22.5% (Flat) Western Europe (N°1) USA (N°2) Market (value): -0.8% Market (value): -0.2% BIC share: 17.9% (+0.5 pts) BIC share: 14.1% (Fl
Slide 29: Stationery: New Products and Champion Brands
STATIONERY CONTINUE TO BUILD ON NEW PRODUCTS AND CHAMPION BRANDS… New Products as % of Sales BIC® Cristal ® Fashion BIC® 4 Color Design BIC® Cristal® Bold 25% 27% 25% 23% 2010 2015 2016 2017 Flat Highlighter Champion Brands as % of Sales BIC® Gel-Ocity Decor BIC® Evolution Cap 45% 46% 46% 36% 2010 2
Slide 30: My BIC Pen
STATIONERY …AND LEVERAGE NEW SHOPPING EXPERIENCE INITIATIVES TO DRIVE SALES Engage fans and brand lovers On-line Off-line on Social Media 2 customized 4 Color Pens available in-store for 2018 Back-to-School MY BIC PEN European Facebook Contest Dedicated e-commerce designed and managed by BIC Graphic
Slide 31: Lighters
LIGHTERS Net Sales growth on a comparative basis* +8.2% +5.4% +5.4% +6.5% +5.2% +5.6% +2.0% +2.2% FY 2017 Net Sales €703.9M -0.5% -1.7% Q1 Q2 Q3 Q4 FY Normalized* IFO margin FY 2017 NIFO 38.0% 39.5% 37.4% 40.5% 41.7% 41.7% 40.9% 39.1% 38.2% 39.8% 40.2% 39.5% €278.3M Q1 Q2 Q3 Q4 FY 2016 2017 Excl. Sp
Slide 32: Lighters: Number of Smokers by Region
LIGHTERS NUMBER OF SMOKERS BY REGION 889.5 millions 896.4 millions +1% North America: -3% Europe (Western & Eastern): -2% Latin America: +1% Middle East & Africa: +3% Asia: +2% 2017 2019 (est.) GROUP PRESENTATION FOR INVESTORS 32 Source: Euromonitor 2016 - 80 countries
Slide 33: Lighters: Customized Sleeves to Personalized Lighters
LIGHTERS U.S. - FROM CUSTOMIZED SLEEVES TO PERSONALIZED LIGHTERS BIC® Lighters Sleeves’ Design Design My BIC Lighters as % of total US Sales (value) BIC’s First Personalized Lighters Initiative (U.S.) 32.4% 23.1% 2012 2017 GROUP PRESENTATION FOR INVESTORS 33
Slide 34: Shavers
SHAVERS Net Sales growth on a constant currency basis* +10.9% +9.0% +6.6% 4.8% +7.0% +1.4% FY 2017 Net Sales €454.4M -0.9% -2.2% -7.7% -5.1% Q1 Q2 Q3 Q4 FY Normalized* IFO margin FY 2017 NIFO 12.9% 13.8% 14.1% 19.8% 13.8% 15.5% 12.8% 14.9% 15.4% 13.3% €60.6M 12.6% 10.7% Q1 Q2 Q3 Q4 FY 2016 2017 Excl
Slide 35: Shavers: Market Trends & BIC Performance
SHAVERS MARKET TRENDS & BIC PERFORMANCE % of Value-added Products in total sales + 5.0% 61% 62% 63% 49% - 5.0% Europe North America Latin America 2011 2015 2016 2017 One-Piece Segment YonY performance BIC YonY Performance Source: Nielsen/IRI / Europe= 15 countries (YTD June 2017) / NAM= USA (YTD Dec
Slide 36: The BIC Shave Club
SHAVERS THE BIC SHAVE CLUB Websites’ Visitors Conversion Rate (average) Cumulative Numbers of Subscribers Churn Rate (90 days) France Branding 1.4% campaign 1.1% UK launch 20% March April May June July Aug Sept Oct Nov Dec Jan March - July 17 August 17-Jan 18 March April May June July Aug Sept Oct N
Slide 37: 2018 New Product – Europe
SHAVERS 2018 NEW PRODUCT – EUROPE Launch in Italy, Spain, Launch in Nordics, France, Portugal, Poland, Romania Austria, Netherlands Offer Bic’s best shave and continue to trade up consumers to a more affordable performance with BIC Flex 5 and Bic Flex 5 Hybrid (adapted to local European market speci
Slide 38: North America – US Market
SHAVERS NORTH AMERICA – US MARKET Total Wet Shave Market Breakdown Total off-line One-Piece Off-line Market Sales (in value - off-line and on-line)* Market Share (in value) 2015-2017 (in value) 3.2 Bn USD 3.1 Bn USD 2.2% 8.1% 4.9% +3.2 pts 15% 11.8% 16.9% +5.1 pts 17.2% 15.6% 63% -1.6 pts -1.6% 49%
Slide 39: BIC's Performance in the U.S.
SHAVERS BIC’S PERFORMANCE IN THE U.S. BIC’s YTD Market Share – One Piece Segment (in value) BIC Flex 5 (Male) vs main competitor Price Index 40.0% 35.0% 28.0% 179 25.0% 26.7% 26.7% 30.0% 22.9% 23.2% 148 148 25.0% 19.9% 21.1% 129 20.0% 100 100 5-Blades 3-Blades 5-Blades 22.0% 15.0% 3-Blades 28.1% 36.
Slide 40: 2018 New Product – U.S.
SHAVERS 2018 NEW PRODUCT – U.S. Extend our premium male portfolio with a Value Answer the highly demanding for Money Flex 3 Hybrid Concept female consumers looking for a 2 in 1 proposition, moisture bars Price comparison – index 100 surrounding the 5 blade head, no shave cream needed! Main Competito
Slide 41: Shavers Latin America - Brazil
SHAVERS LATIN AMERICA - BRAZIL +2.9 pt Market Share 18.9% 17.9% 16.9% 16.0% 2014 2015 2016 YTD OCT. 2017 GROUP PRESENTATION FOR INVESTORS 41 Source: BRAZIL Nielsen data YTD OCT 2017 & Kantar Worldpanel
Slide 42: 2018 New Product – LATAM (Brazil)
SHAVERS 2018 NEW PRODUCT – LATAM (BRAZIL) Introduce the Hybrid Concept and extend our Comfort Shavers Portfolio with a Value For Money proposition Price comparison – index 100 Main Competitor 100 BIC Comfort 3 Hybrid 70 GROUP PRESENTATION FOR INVESTORS 42
Slide 43: Other Products
OTHER PRODUCTS Net Sales growth on a comparative basis* -0.6% -4.2% -5.0% -5.5% -6.8% FY 2017 Net Sales €70.2M -8.9% -10.0% -10.8% -13.0% -13.4% Q1 Q2 Q3 Q4 FY Normalized* IFO FY 2017 NIFO - €4.4M 1.3 0.4 -1.9 -1.7 -2.4 -3.0 -0.4 -3.9 -4.4 -2.2 -7.8 -7.6 Q1 Q2 Q3 Q4 FY 2016 2017 Excl. Special bonus
Slide 44: Group Overview
GROUP OVERVIEW GROUP PRESENTATION FOR INVESTORS
Slide 45: History at a Glance
HISTORY AT A GLANCE 1950 …Marcel Bich launches the BIC® Cristal, the first high quality ballpoint pen at an affordable price It is sold under the name, a shortened and easier recognized version of the “Bich” name. 1954 …The Group starts its international expansion in Europe (Italy, UK, …), Latin Ame
Slide 46: 2017 Net Sales Breakdown
2017 NET SALES BREAKDOWN By category and by geography OTHER PRODUCTS DEVELOPING STATIONERY MARKETS EUROPE 4% 39% 33% 28% SHAVERS 22% 39% 35% LIGHTERS NORTH AMERICA GROUP PRESENTATION FOR INVESTORS 46
Slide 47: Strategic Assets
STRATEGIC ASSETS ➢ Quality and Value product positioning ▪ A large and diversified product portfolio aimed at answering consumers’ needs ▪ Innovation: 11% of net sales through new products in 2017 ▪ Recognized brands ▪ Historical international footprint - Present in more than 160 countries - More th
Slide 48: Key Strengths
KEY STRENGTHS Worldwide Solid Balance Our Products Our Brands leadership Sheet N°2 Stationery Simple cc.9% market share €262.2M Free Cash Reliable Flow generation*** N°1 Lighters Inventive cc. 50% market share** At the right Price €204.9M Net Cash N°2 Shavers Position at the end 22% market share* of
Slide 49: Strong International Brands
STRONG INTERNATIONAL BRANDS BIC Stationery brand unaided awareness rate 92 91 94 86 84 74 79 60 France United Kingdom Italy United-States Canada Mexico Brazil Argentina Source: 2015 Category Incidence Study GROUP PRESENTATION FOR INVESTORS 49
Slide 50: Manufacturing Network
MANUFACTURING NETWORK 24 FACTORIES IN 4 CONTINENTS ➢ 90%* of the BIC® consumer products are produced in BIC-owned factories ➢ BIC’s strategy is to manufacture products close to its markets *Excluding BIC Graphic Developing Markets and Europe 50 GROUP PRESENTATION FOR INVESTORS
Slide 51: BIC in 2017: Operational Performance
BIC IN 2017 OPERATIONAL PERFORMANCE 17.2% 20.2% 19.8% 19.7% 18.2% 18.7% 19.4% 17.9% 15.3% Normalized* 17.4% 15.1% IFO margin 5.9% 6.2% 4.9% 4.2% 3.3% 3.1% 3.6% 2.8% 1.6% 1.4% -0.6% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016** 2017 Net Sales growth on a comparative basis *See glossary ** Exclu
Slide 52: BIC in 2017: Cash Generation
BIC IN 2017 CASH GENERATION In million euros 297.2 262.2 263.6 239.4 221.9 225.7 204.6 203.6 208.3 194.4 185.4 186.7 167.5 145.7144.3 129.4 116.3 115.1 115.6108.8 119.8 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Free Cash Flow Free Cash Flow before acquisitions and disposals* after acqui
Slide 53: CAPEX
CAPEX 300 10.0% 8.9% 9.1% 5.3% 5.9% 6.6% 5.7% 5.7% 5.4% 250 3.4% 3.4% 4.9% 0.0% 200 181 186 -10.0% 150 -20.0% 125 121 107 112 100 83 89 -30.0% 77 63 53 50 -40.0% 0 -50.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Capex to sales *Capacity + new buildings and land + new products **
Slide 54: Use of Net Cash and Shareholders Remuneration
USE OF NET CASH AND SHAREHOLDERS REMUNERATION In million euros 117 298 264 208 58 239 205 15 226 74 161 179 182 185 53 160 91 85 121 146 49 31 129 13 116 120 1 135 58 64 68 122 65 101 104 97 65 80 82 49 40 42 56 26 2 17 8 2 8 10 14 26 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Busin
Slide 55: Use of Cash (1/2)
USE OF CASH (1/2) 186 million euros CAPEX 1 in 2017 Invest to prepare the future Bolt-on strategic Acquisitions acquisitions 2007 2009 2009 2009 2011 2013 2014 2015 Atchison APP Cello Pens Norwood Angstrom Cello Pens Cello Pens Cello Pens Products Promotional (Partnership) Promotional Fuel Cell Majo
Slide 56: Use of Cash (2/2)
USE OF CASH (2/2) In euros Dividend per share Special Dividend 2 3.40 3.45 3.45 2.85 2.50 PAY-OUT RATIO 2.56 2.60 2.20 Ensure a steady 1.90 1.80 1.35 1.35 1.40 56% based growth of the 0.90 1.00 1.15 1.30 1.00 on 2017 results ordinary dividend 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20
Slide 57: Stationery
STATIONERY GROUP PRESENTATION FOR INVESTORS
Slide 58: The Consumer Stationery Market (1/3)
THE CONSUMER STATIONERY MARKET (1/3) Total worldwide consumer stationery market in retail value= 16.3 billion Euros in 2016 Key geographical markets breakdown (in value) Breakdown by main segment (in value) Correction & Others Accs India 9% 9% 3% Europe 20% Coloring China 14% 15% Pens 44% Marking &
Slide 59: The Consumer Stationery Market (2/3)
THE CONSUMER STATIONERY MARKET (2/3) 15,0% Market growth (CAGR) Market trends by geographies (in value) 2016/2012 India 10,0% Latin America Asia 5,0% North America Europe 0,0% Size in million euros Source: Euromonitor Writing Instrument 2016 in retail value excl. pen & pencil refills GROUP PRESENTAT
Slide 60: The Consumer Stationery Market (3/3)
THE CONSUMER STATIONERY MARKET (3/3) Total worldwide consumer stationery market in retail value= 16.3 billion Euros in 2016 Breakdown by main supplier (in value) Newell 9.2% BIC* Others 8.0% 65.2% Pilot 5.3% Crayola 3.8% Mitsubishi Pencil 2.6% Faber Castell 3.4% M&G (China) 2.5% Source: Euromonitor
Slide 61: Stationery Consumer: BIC Positions in Major Segments and Geographies
STATIONERY CONSUMER BIC POSITIONS IN MAJOR SEGMENTS AND GEOGRAPHIES N°1 in Ball Pen N°1 in Mechanical Pencils (16.6% Market Share) (11.5% Market Share) N°1 in Correction* (7.9% Market Share) N°1 in N°2 in US N°1 in India Western Europe (14.1% Market (22.5% Market (17.8% Market Share) Share) Share) S
Slide 62: Stationery Consumer – BIC Strategy
STATIONERY CONSUMER – BIC STRATEGY Generate profitable growth through: Gaining market share in Developed countries (markets more or less flat) focusing on Champion Brands new products Accelerating sales growth in fast growing countries (markets up mid to high single digit) Developing geographical fo
Slide 63: Stationery Consumer: Quality @ a BIC Price
STATIONERY CONSUMER: “QUALITY @ A BIC PRICE” State-of-the-art More than 4m manufacturing outlets Historical Iconic process worldwide* and close products relationship with the trade Worldwide Strong leadership Champion positions brands Strong positions in major market Engaging closely On-going segmen
Slide 64: 2010-2017 BIC Stationery Key Figures
2010- 2017 BIC STATIONERY KEY FIGURES FY 2017 FY 2017 €804.2M €66.3M Net Sales NIFO Net sales change on a comparative basis Average Volume +7.0% +6.0% +1.0% +0.3% +4.0% +2.0% +1.5% 2.4% +3.0% Value +6.7% +4.1% +2.6% +2.1% +4.2% +3.6% +5.2% 3.4% +3.9% 15.0% 14.0% 12.1% 12.7% 12.5% 11.5% 11.9% 9.0% 8.
Slide 65: BIC Product Retail Price Positioning
BIC® PRODUCT RETAIL PRICE POSITIONNING Ball pen Retail prices in France In euros 4.45 € 2.53 € 2.24 € 1.98 € 1.63 € 1.46 € 0.73 € 0.32 € 0.36 € 0.41 € Cristal medium Cristal Fashion Cristal like me M10 4 coulours Atlantis soft Cristal stylus Learner bell pen 4 colours 4 colours stylus Shine/Decor/Fl
Slide 66: Lighters
LIGHTERS GROUP PRESENTATION FOR INVESTORS
Slide 67: The Pocket Lighter Market: Volumes vs. Value
THE POCKET LIGHTER MARKET VOLUMES VS. VALUE Volumes: 13.2 billion units Value: 5.0 billion euros World Excl. Asia 35% 44% 56% 65% Asia BIC estimates for 2016 – Retail prices GROUP PRESENTATION FOR INVESTORS 67
Slide 68: The Pocket Lighter Market: Key Players Outside Asia
THE POCKET LIGHTER MARKET KEY PLAYERS OUTSIDE ASIA Market shares in volume outside Asia Market shares in value outside Asia Of which Of which Swedish Match: 6% Flamagas: 6% Flamagas: 6% Swedish Match: 5% Tokkai: 1% Tokkai: 2% Asian 13% manufacturers 18% 32% BIC cc. 57% 30% Other branded Lighters cc.
Slide 69: Overview of Mandatory Safety Regulation Around the World
OVERVIEW OF MANDATORY SAFETY REGULATION AROUND THE WORLD ISO: 1989 2000 CR: 1995 2006 2011 1994 2005 CR: 1992 ISO: 2004 ISO: 1997 CR: 2016 1998 2003 2010 2007 ISO 9994 1997 2003 Child resistant 2006 2003 1999 ISO 9994 and Child Resistant GROUP PRESENTATION FOR INVESTORS 69
Slide 70: Long Term View of Safety Regulation Impact on Lighter Sales
LONG TERM VIEW OF SAFETY REGULATION IMPACT ON LIGHTER SALES Latin North Africa Asia Europe America* America* ISO 9994 conform lighters Low quality lighters Matches * Real enforcement of the regulation GROUP PRESENTATION FOR INVESTORS 70
Slide 71: BIC Lighter – Strategy
BIC LIGHTER – STRATEGY Strengthen our position as the only lighter brand with worldwide strengths By promoting the extension and the total enforcement of international safety standards By accelerating the development of value-added products (sleeves, cases and utility lighters) GROUP PRESENTATION FO
Slide 72: BIC Lighter: N°1 Branded Lighter Manufacturer
BIC LIGHTER N°1 BRANDED LIGHTER MANUFACTURER Market leadership - Estimated market shares (in value) cc. 50% > 70% > 65% < 30% Worldwide* Europe North America Latin America Safety – Quality – Prevention & education Integrated distribution network Dedicated Customer Support Teams More than in all coun
Slide 73: Usage Diversification and Increase in Number of Smokers
USAGE DIVERSIFICATION AND INCREASE IN THE NUMBER OF SMOKERS ➢ Usages (United States) Cigarettes Candles cc. 1/3 of usages Others «excluding cigarettes» Source : Disposable Pocket Lighters Awareness and Usage Study August 2015 – United States GROUP PRESENTATION FOR INVESTORS 73
Slide 74: 2010–2017 BIC Lighter Key Figures
2010 – 2017 BIC LIGHTER KEY FIGURES FY 2017 FY 2017 €707.4M €277.6M Net Sales NIFO Net sales on a comparative basis Average Vol. +10.0% +8.0% +3.0% +3.8% +4.0% +5.0% +2.3% +0.7% +4.6% Value +11.6% +8.6% +4.3% +7.0% +8.3% +8.3% +5.6% 2.2% +7.0% 38.9% 39.8% 39.2% 37.7% 38.2% 38.1% 37.4% 37.0% 36.2% 20
Slide 75: BIC Lighters Sales Evolution in the U.S.
BIC® LIGHTERS SALES EVOLUTION IN THE U.S. ➢ Continue to leverage all growth drivers 2010-2017 : +6% CAGR In value +2 +3 +2 +2 106 100 -3 2010 Cigarette Other Combustible Sleeves trade-up Distribution Gains Price 2017 Consumption Consumption GROUP PRESENTATION FOR INVESTORS 75
Slide 76: BIC Lighter Retail Price Positioning
BIC® LIGHTER RETAIL PRICE POSITIONING $1.42 1.20 € 4.51 3.00 1.18 € BRL CNY 3.94 $0.49 BRL 1.00 1.00 € CNY Europe USA Brazil China (in euros) (in dollar) (in BRL) (in CNY) Source: BIC (Reference J26 for Europe, USA, Brazil and J3 for China) Europe, USA, Brazil and China : 2016 data GROUP PRESENTATIO
Slide 77: BIC Lighter Retail Price per Flame
BIC® LIGHTER RETAIL PRICE PER FLAME Based Indice 1 2.1 1.4 1.4 1.3 1.3 1.0 1.0 1.0 1.0 Europe USA Brazil China BIC Other compliant lighter Non-compliant lighter Source: BIC (Reference J26 for Europe, USA, Brazil and J3 for China) Europe, USA, Brazil and China : 2016 data GROUP PRESENTATION FOR INVES
Slide 78: Shavers
SHAVERS GROUP PRESENTATION FOR INVESTORS
Slide 79: The Shaver Market (1/6)
THE SHAVER MARKET (1/6) Total wet shave market in 2017: 11.9 billion euros DOUBLE EDGE 3% ONE-PIECE 38% REFILLABLE 59% Source: Euromonitor + Industry publications GROUP PRESENTATION FOR INVESTORS 79
Slide 80: Wet Shave Market – Regional Structure
WET SHAVE MARKET – REGIONAL STRUCTURE in value Disposable System NAM WE EE 6% 6% 2% NAM WE EE Men 16% 17% 5% 80% MEA MEA LAM 1% 2% MEA 9% LAM ASIA 4% 1% ASIA OCE 1% 3% 8% Women 28% 52% 20% 7% 10% NAM WE EE NAM 3% 0.3% WE EE 2% 5% 2% 1% LAM ASIA 1% 1% ASIA 1% Source: Euromonitor 2016 / Internal GROUP
Slide 81: The Shaver Market (3/6)
THE SHAVER MARKET (3/6) ➢ Wet Shave market trend (in billion euros) 11.6 11.9 11.9 10.9 11.2 10.2 10.6 9.4 9.8 8.8 9.2 8.5 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Euromonitor + Industry publications GROUP PRESENTATION FOR INVESTORS 81
Slide 82: The Shaver Market (4/6)
THE SHAVER MARKET (4/6) Global Wet Shave Source of Growth – in value (CAGR 2010 to 2017) 37% 22% 41% Trading Up & Price Increase Consumption Population Growth Growth 2010 2017 Source: Euromonitor 2017 + Internal estimate GROUP PRESENTATION FOR INVESTORS 82
Slide 83: The Shaver Market (5/6)
THE SHAVER MARKET (5/6) ➢ Market evolution towards more value-added products (in value) Western Europe USA Single Blade Twin Blades Triple Blades and More Single Blade Twin Blades Triple Baldes and More 86% 80% 74% 56% 40% 23% 14% 16% 4% 4% 2% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201
Slide 84: The Shaver Market (6/6)
THE SHAVER MARKET (6/6) ➢ Market evolution towards more value-added products (in value) Brazil Single Blade Twin Blades Triple Blades and More 57% 38% 9% 5% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: AC Nielsen – FY 2017 GROUP PRESENTATION FOR INVESTORS 84
Slide 85: Shavers - Strategy
SHAVERS - STRATEGY ➢ Strengthen our foundation in one-piece ▪ A complete and successful range of one-piece three, four and five-blade products for men (BIC 3™, Comfort 3™, Hybrid 3™, Flex 3™, Flex 4™, Flex 5™, Hybrid 5 ™…) ▪ A strong franchise in the women’s segment with the BIC® Soleil® Brand ▪ Pro
Slide 86: 2010–2017 BIC Shaver Key Figures
2010 – 2017 BIC SHAVER KEY FIGURES FY 2017 FY 2017 €459.4M €60.0M Net Sales NIFO Net sales change on a comparative basis Average Volume +7.0% +3.0% +3.0% +3.8% +4.0% +1.0% +0.6% +3.0% +3.2% Value +7.6% +9.1% +10.1% +6.5% +4.1% +11.9% +7.0% -2.2% +6.8% 18.0% 18.5% 17.8% 16.3% 17.1% 17.0% 14.9% 14.2%
Slide 87: One-Piece Market Shares in Europe
ONE-PIECE MARKET SHARES IN EUROPE (15 COUNTRIES) ➢ In volume ➢ In value 50% 38% 17% 17% 18% 13% Gillette BIC Schick Gillette BIC Schick Source: Nielsen - Last 52 weeks ending December 2017 (Europe 15 countries) GROUP PRESENTATION FOR INVESTORS 87
Slide 88: One-Piece Market Shares in USA
ONE-PIECE MARKET SHARES IN USA ➢ In volume ➢ In value 36% 30% 24% 27% 16% 11% Gillette BIC Schick Gillette BIC Schick Source: Nielsen - Last 52 weeks ending December 2017 (Europe 15 countries) GROUP PRESENTATION FOR INVESTORS 88
Slide 89: One-Piece Market Shares in Brazil
ONE-PIECE MARKET SHARES IN BRAZIL ➢ In volume ➢ In value 69% 77% 25% 19% 1% 1% Gillette BIC Schick Gillette BIC Schick Source: Nielsen - Last 52 weeks ending December 2017 (Europe 15 countries) GROUP PRESENTATION FOR INVESTORS 89
Slide 90: BIC Market Shares in 3 and More Blades Disposable Shavers Segment
BIC MARKET SHARES IN 3 AND MORE BLADES DISPOSABLE SHAVERS SEGMENT ➢ In volume ➢ In value 34% 30% 28% 27% 24% 20% Europe United States Brazil Europe United States Brazil Source: IRI MULO AC Nielsen and BIC estimates (Europe, US and Brazil: December 2017) GROUP PRESENTATION FOR INVESTORS 90
Slide 91: Long-Term Priorities
LONG-TERM PRIORITIES ➢ More performance… always at a fair price Unit price 5 4 blades 3 blades blades Competitor 1 Competitor 2 2 BIC Flex 5 BIC blades BIC Flex 5 Hybrid 1 BIC Flex 4 blade BIC Comfort BIC Sensitive 3 Advance BIC Twin Select Shaving performance GROUP PRESENTATION FOR INVESTORS 91
Slide 92: Long-Term Priorities: Adapting Our Offer
LONG-TERM PRIORITIES DEVELOPING MARKETS ➢ Adapting our offer Developed markets Developing markets GROUP PRESENTATION FOR INVESTORS 92
Slide 93: Governance
GOVERNANCE GROUP PRESENTATION FOR INVESTORS
Slide 94: Shareholding Structure – 31 Dec. 2017
SHAREHOLDING STRUCTURE – 31 DEC. 2017 As of December 31, 2017, the total number of issued shares of SOCIÉTÉ BIC is 46,475,249 shares representing 68,081,160 voting rights. 1.7% TREASURY SHARES 44.1% BICH FAMILY (Voting rights: 60.1%) 54.2% PUBLIC GROUP PRESENTATION FOR INVESTORS 94
Slide 95: Board of Directors Composition
BOARD OF DIRECTORS COMPOSITION 11 40 % 4 DIRECTORS WOMEN NATIONALITIES 40 % 9 91 % INDEPENDENCE RATE MEETINGS ATTENDANCE RATE Pierre Vareille Gonzalve Bich Chairman Chief Executive Officer Vincent Bedhome Elizabeth François Director representing Marie-Pauline John Bastoni Bich the employees Chandon-
Slide 96: Sustainable Development
SUSTAINABLE DEVELOPMENT GROUP PRESENTATION FOR INVESTORS
Slide 97: Distribution to Stakeholders
2017 DISTRIBUTION TO STAKEHOLDERS Shareholders Net investments 258,1 M€ 172,7 M€ Banks1 Suppliers -6,1 M€ Customers 1 010,4 M€ Net sales Communities Employees 1,8 M€ 524,6 M€ Governments 115,6 M€ 1) Interests received GROUP PRESENTATION FOR INVESTORS 97
Slide 98: Measure…
MEASURE… Items used to advertise and promote a product, a service or a company program BIC® Cristal® 88% 7% 4% - 1% Pen Lighter BIC® 87% 6% 5% - 2% Maxi BIC® Classic Single-blade 83% 11% 4% - 2% Shaver (shaver inc.usage) 78% GROUP PRESENTATION FOR INVESTORS 98
Slide 99: … to Eco-Design …
… TO ECO-DESIGN … Take into account our main impact: use of non renewable raw materials 1 Light and long lasting Reduce to the raw products material weight 2 Maximum increase Refillable products of the duration of use 3 Recycled plastic and metal Use alternative Plastic from vegetal origin materials
Slide 100: … Our Products
… OUR PRODUCTS A trendsetting range Light and long-lasting products overcoming the paradox of disposable vs. long-lasting Eco-values on packaging for stationery products GROUP PRESENTATION FOR INVESTORS 100
Slide 101: French Ecolabel NF Environnement
FRENCH ECOLABEL NF ENVIRONNEMENT BIC FIRST MANUFACTURER TO BE CERTIFIED Cristal® Fine Clic Stic™ Orange™ Fine BIC Matic Evolution™ 650 Cristal® Medium (uniquement en boîtes) Evolution™ 655 Atlantis® Clic (in box only) Evolution™ coloring 4 Couleurs™ Evolution™ coloring Triangle 4 Couleurs™ fine BIC®
Slide 102: An Example of Ecodesign: The BIC Easy Shaver
AN EXAMPLE OF ECODESIGN: THE BIC® EASY SHAVER Ecodesign allowed to create a shaver with: ▪ Less material 1st step: ▪ With the same characteristics, therefore the same perception of quality by the consumer Reducing the quantity of material -20% BIC® C3 ® AdvanceTM BIC® Easy BIC® EASY 1 lighweight han
Slide 103: 2018-2025: New Commitments
2018 - 2025 7 YEARS, 5 NEW COMMITMENTS GROUP PRESENTATION FOR INVESTORS 103
Slide 104: Appendix
APPENDIX GROUP PRESENTATION FOR INVESTORS
Slide 105: H1 2018 Net Sales: Main Exchange Rate Evolution vs. Euro
H1 2018 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average Average Average Average rate rate rate rate % of % of % of sales Q2 2017 Q2 2018 change % of sales H1 2017 H1 2018 change US Dollar 41% 1.10 1.19 US Dollar 39% 1.08 1.21 -10.7% -7.6% 6% 3.55 Brazilian Real 7% 3.45 4.15 -16.9% Brazilian
Slide 106: Group Quarterly Figures
GROUP QUARTERLY FIGURES Restated for IFRS 15 In million euros Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Net Sales 469.3 562.2 490.5 503.8 2,025.8 469.2 593.7 465.8 491.6 2,020.3 473.2 599.0 471.7 497.4 2,041.4 415.4 543.9 YoY actual changes
Slide 107: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY Restated for IFRS 15 In million euros Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Europe 126.6 170.0 131.4 116.8 544.8 129.5 177.5 135.3 116.9 559.3 131.5 181.2 137.7 119.6 570.0 124.3 176.1 Net Sales YoY
Slide 108: Stationery
STATIONERY Restated for IFRS 15 In million euros Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Net Sales 167.1 241.1 193.9 178.2 780.3 163.4 264.7 191.3 172.4 791.8 165.5 267.8 194.6 176.3 804.2 151.8 249.5 YoY actual changes -0.4% -1.2% -0.2%
Slide 109: Lighters
LIGHTERS Restated for IFRS 15 In million euros Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Net Sales 163.6 177.2 167.6 187.9 696.4 171.3 185.5 157.9 189.1 703.9 172.2 186.4 159.2 189.6 707.4 152.7 165.0 YoY actual changes +0.1% -0.7% +5.6% +7
Slide 110: Shavers
SHAVERS Restated for IFRS 15 In million euros Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Net Sales 117.8 120.1 111.8 117.3 467.0 114.4 122.0 102.9 115.1 454.4 115.3 123.4 104.2 116.5 459.4 97.0 113.5 YoY actual changes +4.8% +2.0% -1.1% +7.8
Slide 111: Other Products
OTHER PRODUCTS Restated for IFRS 15 In million euros Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Net Sales 20.8 23.8 17.2 20.3 82.1 20.1 21.4 13.7 15.0 70.2 20.2 21.5 13.7 15.0 70.4 13.8 15.9 YoY actual changes -14.0% -14.8% -9.5% -6.8% -11.6
Slide 112: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of June 30, 2018, the total number of issued shares of SOCIÉTÉ BIC was 46,645,433 shares, representing: • 68,003,531 voting rights, • 67,055,750 voting rights excluding shares without voting rights. Total number of treasury shares held at the end of June 2018: 947,781. G
Slide 113: Glossary - Miscellaneous
GLOSSARY - MISCELLANEOUS • Constant currency basis: constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates. • Organic growth or Comparative basis: at constant currencies and constant perimeter. Figures at constant perimeter exclu
Slide 114: Agenda (Dates to Be Confirmed)
AGENDA (DATES TO BE CONFIRMED) Third Quarter 2018 Results 24 October 2018 Conference call Full year 2018 Results 13 February 2019 Meeting at BIC Headquarters First Quarter 2019 Results 25 April 2019 Conference call 2019 AGM 22 May 2019 Meeting dates to be confirmed GROUP PRESENTATION FOR INVESTORS 1
Slide 115: 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
Slide 116: BIC Group
BIC GROUP GROUP PRESENTATION FOR INVESTORS