Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — FY2019 Earnings Presentation
34 slides from Societe Bic Sa's earnings presentation, Feb 12, 2020
Slide 1: Full Year 2019 Results and 2020 Outlook Presentation
FULL YEAR 2019 RESULTS AND 2020 OUTLOOK PRESENTATION February 12, 2020 1
Slide 2: Full Year 2019 Results
FULL YEAR 2019 RESULTS Gonzalve BICH Jim DIPIETRO
Slide 3: BIC in 2019 – Key Takeaways
BIC IN 2019 – KEY TAKEAWAYS BIC 2022 Invent The Future Transformation Challenging Plan on track Trading Continued Environment Investments in Proposed Brand Support Dividend per and Selected share of Acquisitions 3.45 euros for 2019 3
Slide 4: Progress on BIC 2022-Invent the Future Plan
PROGRESS ON BIC 2022-INVENT THE FUTURE PLAN Effectiveness Innovation Consumer-centric Brands Omnichannel Distribution New Global Market and Consumer Insights Team created New centralized Global Customer procurement Stationery and Shavers Relationship New e-commerce organization Design and Engineerin
Slide 5: 2019 Group Financial Performance
2019 GROUP FINANCIAL PERFORMANCE EPS NET SALES NORMALIZED IFO NET CASH Change on a NIFO Margin % POSITION comparative basis % 3.91€ (+2.9%) 1,949.4 M€ 331.8 M€ 146.9M€ NORMALIZED EPS -1.9% 17.0% -9.0% 5.47€ (-6.8%) 5
Slide 6: 2019 Key Non-Financial Figures
2019 KEY NON-FINANCIAL FIGURES Acting against Climate Change FY 2018 FY 2019 CO2 Emissions (Scope 1 & 2) 98,283 tons 97,711 in tons % of Renewable Electricity (Writing the Future, Together Commitment: 68% 76% 80% by 2025) Safe Work Environment FY 2018 FY 2019 Work accidents (Writing the Future, Toge
Slide 7: Total Shareholders' Remuneration
TOTAL SHAREHOLDERS’ REMUNERATION Proposal of 3.45 euros Ordinary Dividend per share* 39.2 million euros Share Buyback in 2019 In million euros 6.77 In euros 6.24 6.26 5.87 101.4 5.53 5.58 97.1 5.33 5.47 5.21 80.2 81.6 4.44 3.40 3.45 3.45 3.45 3.45 3.48 2.85 2.56 2.60 2.50 54.1 2.20 42.0 1.90 1.80 39
Slide 8: 2019 Highlights on Stationery
2019 HIGHLIGHTS MARKET & BIC PERFORMANCE ON STATIONERY EUROPE** U.S.** 2018 déc-19 2018 déc-19 0.0% BIC market 0.5% share Volumes sold 0.3% -0.1 pts FY 6.9 bn units -5.9% BIC market share Net Sales +0.3 pts Q4 169.3 M€ -4.8 %* -0.8% FY 774.4 M€ -3.4 %* NIFO Margin • Soft Back-to-School seasons in bo
Slide 9: 2019 Highlights on Lighters
2019 HIGHLIGHTS MARKET & BIC PERFORMANCE DECORATED LIGHTERS ON LIGHTERS U.S. Non-Refillable Pocket Lighter** U.S. and Group Sleeve Lighters as % of Net Sales 35.1% 36.5% 2018 2019 25.0% 26.1% 26.4% Volumes sold -0.8% BIC market 17.9% share FY 1.5 bn units -4.9% +0.2 pts -5.9% Net Sales 2013 2018 201
Slide 10: 2019 Highlights on Shavers
US MARKET PERFORMANCE** 2019 HIGHLIGHTS 2016 2017 2018 2019 ON SHAVERS 0.9% -3.1% -2.9% -2.2% -3.8% -2.3% -5.0% -4.1% -4.2% -6.3% Total -8.2% One Piece -11.7% refillable Volumes sold BIC’s US MARKET SHARE / One Piece segment** In value (in pts) FY 2.6 bn units +0.1 % 3.0 BIC Market Share change - YT
Slide 11: Q4 and FY 2019 Net Sales Evolution
Q4 AND FY 2019 NET SALES EVOLUTION Change in Change on Change FX impact* Perimeter** Argentina impact*** a comparative In million euros Q4 2018 Q4 2019 as reported (in points) (in points) (in points) basis*** Q4 Net Sales 511.0 501.2 (1.9)% +1.6 +0.1 +0.2 (3.8)% 2019 +6.5 M€: In M€ USD +5.0 BRL -2.8
Slide 12: From Net Sales to IFO
FY 2019 FROM NET SALES TO IFO BIC Group Change on a Change on a In million euros Change as constant comparative FY 18 FY 19 reported currency basis* basis* Net Sales 1,949.8 1,949.4 0.0% (1.4)% (1.9)% Gross Profit 1,014.3 977.3 (3.6%) Normalized 352.4 331.8 (5.8%) Income from Operations Income from
Slide 13: Key Components of Normalized IFO Margin
Q4 AND FY 2019 KEY COMPONENTS OF NORMALIZED* INCOME FROM OPERATIONS MARGIN -1.4% +2.6% -0.1% Q4 2019 18.1% 17.0% +1.8 points from lower incentive plan costs versus prior year Q4 2018 Normalized* IFO Change in cost of production** Total brand support*** OPEX and other expenses Q4 2019 Normalized* IFO
Slide 14: From NIFO to Group Net Income
FY 2019 FROM NIFO TO GROUP NET INCOME In million euros FY 2018 FY 2019 Normalized* IFO 352.4 331.8 Cello Trademark and goodwill impairment in 2019 and Cello and Pimaco goodwill impairment in 2018 (74.2) (44.3) Restructuring costs** (15.4) (44.7) U.K pensions adjustment for past service costs - 9.9 B
Slide 15: Capex – Depreciation & Amortization
2019 CAPEX – DEPRECIATION & AMORTIZATION 186 181 33% Stationery 10% Others 125 113.6 M€ 121 123.8 112 113.6 107 101.4 21% 36% 90 94 93 93 89 Shavers Lighters 77 81 75 71 72 75 63 53 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 CAPEX Depreciation and Amortization 15
Slide 16: Working Capital
WORKING CAPITAL BIC Group Stationery 219.2 In million euros December 2018 December 2019 Total Working Capital 621.2 637.8 Lighters 125.6 Of which inventories 449.2 455.6 Shavers 102.7 Of which Trade 534.7 545.6 and other receivables Of which Trade Other Products 8.1 (137.7) (126.4) and other payable
Slide 17: Net Cash Position
NET CASH POSITION In million euros Operations 334.5 -16.3 -113.6 -155.2 -40.0 -16.2 - 7.8 Net Cash From Operating activities 161.5 146.9 +318.2 M€ December 2018 Operating cash flow Change in working CAPEX Dividend payment Share buyback, Acquisitions* Others December 2019 Net Cash Position capital an
Slide 18: 2020 Outlook
2020 OUTLOOK Gonzalve BICH
Slide 19: 2020 Market Assumptions
2020 MARKET ASSUMPTIONS* Europe Flat to slight decline for the three categories, in value • Flat to slight increase in U.S. Stationery market, in value North • -4.0% to -5.0% decrease in total U.S. pocket Lighters market, in value America • -4.0% to -5.0% decrease in total U.S. one-piece Shavers mar
Slide 20: 2020 Main Net Sales and Normalized IFO Margin Drivers
2020 Main Net Sales and Normalized IFO margin Drivers Line Extensions & Distribution Gains & Commercial Excellence New Products Enhanced Route-to-Market Net Sales Stable Gross Margin Higher OPEX Unfavorable Fixed Costs Higher incentive plan costs compared Absorption Increase in to 2019 Brand Support
Slide 21: 2020 Outlook
2020 OUTLOOK NET SALES NORMALIZED IFO MARGIN We expect FY 2020 Organic Net Sales growth to Full Year 2020 Normalized Income from be between -1.0% to +1.0% compared to FY 2019, Operations margin is expected to be between with a year-on-year growth being weighted towards 16.0% and 17.0% of Net Sales w
Slide 22: Appendix
APPENDIX
Slide 23: Q4 and FY2019 Net Sales by Geography
Q4 AND FY2019 NET SALES BY GEOGRAPHY Q4 Net Sales FY19 Net Sales -3.8% on a comparative basis -1.9% on a comparative basis EUROPE 2.3% EUROPE 3.2% NORTH NORTH -4.1% AMERICA -8.3% AMERICA -3.1% DEVELOPING DEVELOPING -3.8% MARKETS MARKETS (*) 2017 figures restated from IFRS15 23
Slide 24: FY 2019 Net Sales Breakdown
FY 2019 NET SALES BREAKDOWN BY CATEGORY BY GEOGRAPHY Other products 1% Stationery Developing Shavers 40% markets 32% Europe 24% 29% Lighters North America 35% 39% 24
Slide 25: Group Quarterly Figures
GROUP QUARTERLY FIGURES Restated Restated for IFRS 15 for IAS 29 In million euros 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 Q3 19 Q4 19 FY 19 Net Sales 2 020.3 473.2 599.0 471.7 497.4 2 041.4 415.4 543.9 479.5 511.0 1 949.8 415.4 544.8 488.0 501.2 1 949.4 YoY actu
Slide 26: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY Restated Restated for IFRS 15 for IAS 29 In million euros 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 Q3 19 Q4 19 FY 19 Europe 559.3 131.5 181.2 137.7 119.6 570.0 124.3 176.1 138.0 121.4 559.7 122.8 167.9 143.5 124.7 558.9 Net Sa
Slide 27: Stationery
STATIONERY Restated Restated for IFRS 15 for IAS 29 In million euros 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 Q3 19 Q4 FY 19 Net Sales 791.8 165.5 267.8 194.6 176.3 804.2 151.8 249.5 200.2 170.4 771.9 148.3 252.5 204.3 169.3 774.4 YoY actual changes +1.5% -8.3% -
Slide 28: Lighters
LIGHTERS Restated Restated for IFRS 15 for IAS 29 In million euros 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 Q3 19 Q4 FY 19 Net Sales 703.9 172.2 186.4 159.2 189.6 707.4 152.7 165.0 163.8 204.3 685.8 149.7 169.9 161.9 197.4 679.0 YoY actual changes +1.1% -11.3% -1
Slide 29: Shavers
SHAVERS Restated for IAS Restated for IFRS 15 29 In million euros 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 Q3 19 Q4 FY 19 Net Sales 454.4 115.3 123.4 104.2 116.5 459.4 97.0 113.5 104.4 123.1 438.0 109.0 115.5 114.9 123.5 463.0 YoY actual changes -2.7% -15.9% -8.0
Slide 30: Other Products
OTHER PRODUCTS Restated for IFRS 15 In million euros 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 Q3 19 Q4 FY 19 Net Sales 70.2 20.2 21.5 13.7 15.0 70.4 13.8 15.9 11.1 13.2 54.0 8.3 7.0 6.9 10.9 33.1 YoY actual changes -14.5% -31.4% -25.8% -19.2% -12.3% -23.3% -40.0%
Slide 31: Main Exchange Rate Evolution vs. Euro
FY 2019 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average rates Average rates % of sales Q4 2018 Q4 2019 % of change % of sales FY 2018 FY 2019 % of change US Dollar 35% 1.14 1.11 3.06% US Dollar 38% 1.18 1.12 5.48% Brazilian Real 12% 4.35 4.56 -4.70% Brazilian Real 8% 4.31 4.41 -2.30% Mexican
Slide 32: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of December 31, 2019, the total number of issued shares of SOCIÉTÉ BIC was 45,532,240 shares, representing: 67,035,094 voting rights, 66,494,526 voting rights excluding shares without voting rights. Total number of treasury shares held at the end of December 2019: 540,56
Slide 33: 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 At constant currencies and constant perimeter. Figures at constant perimeter exclude or Comparative basis the impacts of acqu
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” of BIC “Registration Document” f