Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — FY2020 Earnings Presentation
39 slides from Societe Bic Sa's earnings presentation, Feb 17, 2021
Slide 1: Fourth Quarter and Full Year 2020 Results
FOURTH QUARTER AND FULL YEAR 2020 RESULTS February 17, 2021 1
Slide 2: 2020 Key Takeaways
2020 KEY TAKEAWAYS 2020 resilience reflects our solid operating model Focus on executional excellence, improved efficiency and cost control Strong cash generation and balance sheet Accelerated, innovative and sustainable growth trajectory Sustained Shareholder Returns 2
Slide 3: Our Markets in 2020
OUR MARKETS IN 2020 Weak underlying trends, change in consumption patterns due to Covid-19 Writing Instruments negatively impacted by e-learning and Coloring remote working STATIONERY U.S(1) Brazil(2) France(3) Coloring segments boosted by increased artistic and creative +3.2% +3.7% +7.4% activities
Slide 4: Our Performance in 2020
OUR PERFORMANCE IN 2020 Market share maintained or increased in strategic products segment and key countries U.S. Total Writing Instruments(1): -0.2pts Russia total wet shave (11): +0.6 pts UK Total Writing Instrument(5): +0.0 pt Permanent Marker(1):+0.7 pts Coloring (6): +3.5 pts Coloring(1): +0.1
Slide 5: +18% Growth in E-Commerce
+18% GROWTH IN E-COMMERCE 2019 2020 Direct to 3% Consumer 1% Amazon, Pure Players and Market Places 43% 5.3% 29% 7.3% of total of total Net Sales Net Sales 54% Omniretailers 69% -10% +85% +118% in Omniretailers, of which -20% in pure e-Commerce in Direct to Consumer 83% in B2B channels channels Medi
Slide 6: Embracing Consumer Trends Through Innovation
EMBRACING CONSUMER TRENDS THROUGH INNOVATION Partnerships New Products 6
Slide 7: Two Acquisitions in Line with Horizon Plan
TWO ACQUISITIONS IN LINE WITH HORIZON PLAN Strengthening our position in lighters and A first step into the fast-growing digital supporting the shift towards a more value- writing segment, paving the way to expanding driven model through premiumization our presence in Human Expression 7
Slide 8: 2020 Key Non-Financial Figures
2020 KEY NON-FINANCIAL FIGURES Acting against Climate Change FY 2019 FY 2020 Change GHG Emissions (Scope 1 & 2 –tCO2eq) • Location-based 97,711 78,046 -20% • Market-based 45,827 33,185 -28% % of Renewable Electricity (Writing the Future, Together 76% 80% Commitment: 80% by 2025) Safe Work Environmen
Slide 9: Q4 & FY 2020 Key Financial Figures
Q4 & FY 2020 KEY FINANCIAL FIGURES € € NET SALES NORMALIZED IFO NET CASH FROM NET CASH NORMALIZED EPS Change on a NIFO Margin % OPERATING POSITION comparative basis % ACTIVITES Q4 2020 Q4 2020 Q4 2020 FY 2020 357.6 M€ 410.1 M€ 52.9 M€ 0.57€ FY 2020 (+12.7% year-on-year) -10.7% 12.9% (-63.0%) 183.9M€
Slide 10: Sustained Shareholder Return
SUSTAINED SHAREHOLDER RETURN 117.6 M€ 121.0 M€ • 81.0 million euros Ordinary Dividend for 2020 7.4 Share Buyback fiscal year, paid in June 2021* 40.0 - 1.8 euros per share • 40 million euros Share Buyback in 2021 110.2 - First European ESG Impact Share Buyback program to be launched in H1, with part
Slide 11: Stationery–Human Expression Main Market Performance
STATIONERY–HUMAN MAIN MARKET PERFORMANCE EXPRESSION % change versus Last Year – YTD December FINANCIAL PERFORMANCE UNITED STATES(1) In million euros FY 2019 FY 2020 0.5% Volumes (in billion BIC market 6.9 4.9 euros) share Net Sales 774.4 575.6 -0.2 pts -12.2% % change* -3.4% -23.2% 2019 2020 Normali
Slide 12: Lighters Market & BIC Performance
LIGHTERS MARKET & BIC PERFORMANCE FINANCIAL PERFORMANCE % change versus Last Year U.S. NON-REFILLABLE POCKET LIGHTER(1) In million euros FY 2019 FY 2020 Volumes (in billion -0.2% 1.5 1.4 euros) BIC market -5.9% share Net Sales 679.0 618.1 2019 2020 +0.8 pts % change* -3.7% -4.7% Normalized Income Fr
Slide 13: Shavers Market Performance
SHAVERS MARKET PERFORMANCE FINANCIAL PERFORMANCE % change versus Last Year In million euros FY 2019 FY 2020 US(1) Volumes (in billion 2.6 2.3 euros) 0.9% BIC market Net Sales 463.0 404.2 share -2.3% % change* +3.2% -6.8% -4.2% -6.1% -5.9% -6.4% +1.0 pts Normalized Income 2019 2020 From Operations 67
Slide 14: Net Sales Evolution Q4 & FY 2020
Q4 & FY 2020 NET SALES EVOLUTION Change in Argentina Change on Change FX impact* Perimeter** impact*** a comparative In million euros Q4 2019 Q4 2020 as reported (in points) (in points) (in points) basis*** Q4 2020 Net Sales 501.2 410.1 (18.2)% (8.1) 0.4 0.2 (10.7)% -40.4 M€ In M€ BRL -16.2 USD -12.
Slide 15: From Net Sales to IFO
FY 2020 FROM NET SALES TO IFO In million euros Change on a constant currency Change on a FY 2019 FY 2020 Change as reported basis* comparative basis* Net Sales 1,949.4 1,627.9 (16.5%) (11.8%) (12.6%) (19.9%) Gross Profit 977.3 782.4 Normalized Income 331.8 229.1 (30.9%) from Operations* Income from
Slide 16: FY 2020 Key Components of Normalized IFO Margin
FY 2020 KEY COMPONENTS OF NORMALIZED INCOME FROM OPERATIONS MARGIN 19.0% +0.4% 17.0% +0.6% 17.0% +4.0% 15.0% -3.9% 14.1% +2.7% 13.0% -2.6% 13.0% Of which -1.7% Net Sales decrease 11.0% -3.9 pts -2.9% 9.6% 9.0% Of which COGS -2.6pts 7.0% OPEX & related expenses -0.3 pts 5.0% FY 2019 Normalized FY 201
Slide 17: Q4 2020 Key Components of Normalized IFO Margin
Q4 2020 KEY COMPONENTS OF NORMALIZED INCOME FROM OPERATIONS MARGIN 21.0% +0.1% 19.0% 18.1% +1.5% 17.0% +9.4% 15.0% Of which -6.8% COGS 13.0% 12.9% -3.0 pts OPEX & Related Of which Expenses 11.0% Net Sales -0.7 pts decrease -3,2% 9.0% 8.7% -3.0 pts 7.0% -3.7% 6.0% 5.0% QTD DEC 2019 Normalized QTD DEC
Slide 18: From NIFO to Group Net Income
FY 2020 FROM NIFO TO GROUP NET INCOME In million euros FY 2019 FY 2020 Normalized* IFO 331.8 229.1 Non-recurring items** 79.1 72.3 IFO 252.7 156.8 Finance revenue/costs (1.3) (1.4) Income before Tax 251.4 155.3 Income tax expense (75.3) (61.6) Effective tax rate 30.0% 39.7% Net Income Group share 17
Slide 19: Capex – Depreciation & Amortization
CAPEX – DEPRECIATION & AMORTIZATION In million euros 2.5 2.1 2.0 2.0 21% Stationery 11% 1.3 1.5 Others 184 176 1.0 2020 CAPEX: 124 1.0 83.1 M€ 0.8 105 101 99 24% 44% 93 93 84 83 Shavers Lighters 0.5 0.0 2016 2017 2018 2019 2020 CAPEX Depreciation and Amortization CAPEX to D&A Ratio 2016 et 2017 CAPE
Slide 20: Working Capital
WORKING CAPITAL Inventories in million euros BIC Group Stationery 181.6 In million euros Dec 2019 Dec 2020 Total Working Capital 637.8 458.0 Lighters 114 Of which inventories 455.6 379.0 Shavers 77.1 Of which Trade and other receivables 545.6 409.6 Of which Trade Other Products 6.3 and other payable
Slide 21: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION In million euros 113% 89% 77% 381 79% 64% 358 318 299 304 275 213 197 176 184 180 123 124 105 83 2016 2017 2018 2019 2020 Net Cash From Operating Activities CAPEX Free Cash Flow before Acquisitions Net Cash Conversion* *: (EBITDA – CAPEX –Working Capital) / EBITDA 2016 et
Slide 22: 31 December 2020 Net Cash Position
31 DECEMBER 2020 NET CASH POSITION In million euros Operations + 123.7 - 83.1 -110.2 +233.9 -7.5 -72.5 -47.3 183.9 146.9 Net Cash From Operating activities +357.6M€ December 2019 Operating cash flow Change in working CAPEX Dividend Payment Net cash from Acquisitions* Others (mainly FX) December 2020
Slide 23: 2021 Market Assumptions
2021 MARKET ASSUMPTIONS* LIGHTERS STATIONERY SHAVERS (pocket) EUROPE Flat to slight increase NORTH Low to mid-single Low to mid-single Flat AMERICA digit increase digit decrease LATIN Low to mid-single digit increase AMERICA Double-digit INDIA increase * in value – Based on Euromonitor and internal
Slide 24: 2021 Main Net Sales and Normalized IFO Margin Drivers
2021 MAIN NET SALES AND NORMALIZED IFO MARGIN AND OPERATING 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 Normalized Income From Oper
Slide 25: 2021 Outlook
2021 OUTLOOK1 We expect the overall trading environment to remain uncertain and volatile, particularly during the first half, as Covid-19 will continue to affect trade channel dynamics and consumer shopping habits in our major markets. In 2021, our objective is to deliver +5% to +7% total Net Sales
Slide 26: Thank You
THANK YOU
Slide 27: Appendix
APPENDIX
Slide 28: FY 2020 Net Sales Breakdown
FY 2020 NET SALES BREAKDOWN BY GEOGRAPHY BY CATEGORY Other products 2% Stationery 35% Europe North America Shavers 32% 43% 25% Middle East & Latin America Africa Asia & Oceania 14% Lighters 5% 38% (Including India) 6% 28
Slide 29: Main Exchange Rate Evolution vs. Euro
Q4 AND FY 2020 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average rates Average rates % of sales FY 2019 FY 2020 % of change % of sales Q4 2019 Q4 2020 % of change US Dollar 39% 1.11 1.19 -7.1% US Dollar 42% 1.12 1.14 -1.8% Brazilian Real 10% 4.56 6.44 -29.1% Brazilian Real 7% 4.41 5.88 -24.9%
Slide 30: Group Quarterly Figures
GROUP QUARTERLY FIGURES Restated Restated for IFRS 15 Restated for Unallocated Group Costs for IAS 29 In million euros Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Net Sales 473.2 599.0 471.7 497.4 2 041.4 415.4 543.9 479.5 5
Slide 31: 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 Q2 20 Q3 20 Q4 20 FY 20 Europe Net Sales 124.3 176.1 138.0 121.4 559.7 122.8 167.9 143.5 124.7 558.9 119.1 138.6 147.2 112.3 517.3 YoY actual changes -5.5% -2.8
Slide 32: 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 19 FY 19 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 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 7
Slide 33: 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 Q2 20 Q3 20 Q4 20 FY 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
Slide 34: Shavers
SHAVERS 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 Q2 20 Q3 20 Q4 20 FY 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
Slide 35: 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 Q2 20 Q3 20 Q4 20 FY 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 6.1 6.6 10.3 30.0 YoY actual chang
Slide 36: Unallocated Costs
UNALLOCATED COSTS In million euros Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 IFO* -12.6 -37.6 -14.9 -21.5 -86.7 -18.8 -20.1 -14.5 -30.5 -84.0 Normalized IFO* -12.6 -10.6 -10.0 -15.9 -49.1 -17.0 -17.2 -13.2 -21.0 -68.4 * see glossary (*) See glossary 36
Slide 37: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of December 31, 2020, the total number of issued shares of SOCIÉTÉ BIC is 45,395,857 shares, representing: • 66,809,211 voting rights • 66,389,687 voting rights excluding shares without voting rights Total number of treasury shares held at the end of December 2020: 419,5
Slide 38: 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 impacts o
Slide 39: 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