Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — Q3 2018 Earnings Presentation
32 slides from Societe Bic Sa's earnings presentation, Oct 24, 2018
Slide 1: Q3 & 9M 2018 Results Presentation
Q3 & 9M 2018 Results Presentation October 24th, 2018
Slide 2: Q3 & 9M Highlights & Category Spotlights
Q3 & 9M HIGHLIGHTS & CATEGORY SPOTLIGHTS Gonzalve BICH 3Q and 9M 2018 Results Presentation 2
Slide 3: 9 Months 2018 Key Messages
9 Months 2018 Key Messages Continued investments in Continued growth challenging trading opportunities environment Solid Q3 and operational effectiveness 2018 Outlook performance in unchanged line with our expectations 3Q and 9M 2018 Results Presentation 3
Slide 4: Q3 & 9M 2018 Financial Performance
Q3 & 9M 2018 Financial Performance Net Sales Normalized IFO Normalized EPS Net Cash Change on a Margin Position comparative basis Q3 2018 Q3 2018 Q3 2018 477.5 M€ 76.8 M€ 9M 2018 1.24 € +5.2% 16.1% 144.8 M€ 9M 2018 9M 2018 9M 2018 1,436.8 M€ 265.0 M€ 4.30 € +0.3% 18.4% 3Q and 9M 2018 Results Present
Slide 5: Category Spotlights
Category Spotlights Stationery Lighters Shavers Net Sales Net Sales Net Sales Q3 199.1 M€ + 6.8 %* Q3 163.3 M€ + 5.8 %* Q3 103.9 M€ + 4.1%* 9M 600.4 M€ + 2.0 %* 9M 481.1 M€ 0.0 %* 9M 314.4 M€ - 0.9 %* NIFO Margin NIFO Margin NIFO Margin Q3 10.3 M€ 5.2 % Q3 58.3 M€ 35.7 % Q3 10.4 M€ 10.0 % 57.3 M€ 9.
Slide 6: Consolidated Results
CONSOLIDATED RESULTS Jim DiPietro 3Q and 9M 2018 Results Presentation 6
Slide 7: Net Sales Evolution
Q3 and 9M 2018 NET SALES EVOLUTION FX translation +5.2% impact 471.7 -0.1% -3.9% 477.5 -18 M€: Q3 USD +2M€ BRL -9M€ 2018 ARS -3M€ INR -1M€ MXN -2M€ RUB UAH -1M€ Others: -4M€ Q3 2017 Net Sales* Perimeter impact Change on a FX translation impact Q3 2018 Net Sales comparative basis 1,544.0 -0.9% +0.3%
Slide 8: From Net Sales to IFO
9M 2018 FROM NET SALES TO IFO Change on a Change on a BIC Group Change as constant comparative In million euros 9M 17* 9M 18 reported currency basis* basis* Net Sales 1,544.0 1,436.8 -6.9% -0.6% +0.3% Gross Profit 801.8 751.9 -6.2% Normalized Income 301.4 265.0 -12.1% from Operations Income from 276
Slide 9: Key Components of Normalized Income from Operations Margin
Q3 and 9M 2018 KEY COMPONENTS OF NORMALIZED* INCOME FROM OPERATIONS MARGIN 17.6% -0.7 +0.8 -1.6 16.1% • Promotions and investments related to Q3 consumer and business development 2018 support accounted for in Gross Profit Margin Q3 2017 Normalized* IFO margin Change in cost of production** Total bra
Slide 10: From NIFO to Group Net Income
9M 2018 FROM NIFO TO GROUP NET INCOME BIC Group In million euros 9M 2017* 9M 2018 Normalized IFO 301.4 265.0 Restructuring costs related primarily to BIC Graphic (24.7) - Cello Goodwill Impairment - (68.7) IFO 276.7 196.3 Finance revenue/costs (0.8) 8.0 Income before Tax 275.9 204.3 Income tax (82.8
Slide 11: Working Capital
WORKING CAPITAL BIC Group December September In million euros 2017 (1) 2018 209.5 Total Working Capital 580.0 617.0 Stationery 199.5 127.2 Of which inventories 429.0 460.4 Lighters 123 September 2018 Of which Trade 107.8 477.1 498.1 Shavers and other receivables 106 September 2017 Of which Trade Oth
Slide 12: Net Cash Position
NET CASH POSITION In million euros Operations -46.6 +284.1 -82.6 -157.8 204.9 -52.5 -4.7 144.8 Net Cash From Operating activities +237.5 M€ December 2017 Net Operating cash flow Change in working CAPEX Dividend payment Share buyback, Others September 2018 Cash Position capital and others exercise of
Slide 13: Looking Ahead
LOOKING AHEAD Gonzalve BICH 3Q and 9M 2018 Results Presentation 13
Slide 14: 2018 Objectives
2018 OBJECTIVES NET SALES NORMALIZED IFO MARGIN We expect Group Net Sales to increase between We expect Normalized IFO margins to be between +1 and +3% on a comparative basis, with all 17% and 18% categories contributing to the growth 3Q and 9M 2018 Results Presentation 14
Slide 15: Q3 & 9M 2018 Results
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Slide 16: Appendix
APPENDIX 3Q and 9M 2018 Results Presentation 16
Slide 17: Net Sales by Geography
Q3 and 9M 2018 NET SALES BY GEOGRAPHY Q3 NET SALES 9M NET SALES +5.2% on a comparative basis +0.3% on a comparative basis 2.9% EUROPE 1.5% EUROPE 5.5% NORTH NORTH 1.4% AMERICA AMERICA 7.1% DEVELOPING -2.2% MARKETS DEVELOPING MARKETS * 2017 figures restated from IFRS15 3Q and 9M 2018 Results Presenta
Slide 18: Market Performances and BIC's Market Share
STATIONERY MARKET PERFORMANCES AND BIC’S MARKET SHARE Europe U.S. August 2018 2017 YTD 0.2% BIC market BIC market share share +0.3 pts +0.5 pts -0.8% 0.0% 2017 September -1.2% 2018 YTD In Value Source: EU7 GFK AUG-2018 - 60% coverage (France, UK, Germany, Italy, Spain, Belgium, Greece/ US NPD YTD SE
Slide 19: US Market Performances and BIC's Market Share
SHAVERS US Market Performances and BIC’s Market Share Off-line Market Sales Q3 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% -2.3% -3.1% -2.8% -3.1% -3.0% 0.0 -4.1% -4.1% -4.1% -3.4% -3.9% -4.0% -5.0% -0.5 -0.4 -0.5 -0
Slide 20: 9M 2018 Net Sales Breakdown
9M 2018 NET SALES BREAKDOWN BY CATEGORY BY GEOGRAPHY 3% OTHER PRODUCTS 29% 31% DEVELOPING 42% MARKETS EUROPE SHAVERS STATIONERY 22% 33% LIGHTERS NORTH AMERICA 40% 3Q and 9M 2018 Results Presentation 20
Slide 21: Main Exchange Rate Evolution vs. Euro
Q3 and 9M 2018 NET SALES Main exchange rate evolution vs. euro Average Average Average Average rate rate rate rate % of % of % of sales Q3 2017 Q3 2018 change % of sales 9M 2017 9M 2018 change US Dollar 40% 1.17 1.16 +0.9% US Dollar 39% 1.11 1.19 -6.7% Brazilian Real 8% 3.71 4.60 -19.3% Brazilian Re
Slide 22: 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 Q3 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 2,041.4 415.4 543.9 477.5 YoY ac
Slide 23: 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 Q3 18 Europe 126.6 170.0 131.4 116.8 544.8 129.5 177.5 135.3 116.9 559.3 131.5 181.2 137.7 119.6 570.0 124.3 176.1 138.0 Ne
Slide 24: 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 Q3 18 Net Sales 167.1 241.1 193.9 178.2 780.3 163.4 264.7 191.3 172.4 791.8 165.5 267.8 194.6 176.3 804.2 151.8 249.5 199.1 YoY actual changes -0.4%
Slide 25: 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 Q3 18 Net Sales 163.6 177.2 167.6 187.9 696.4 171.3 185.5 157.9 189.1 703.9 172.2 186.4 159.2 189.6 707.4 152.7 165.0 163.3 YoY actual changes +0.1% -0
Slide 26: 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 Q3 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 97.0 113.5 103.9 YoY actual changes +4.8% +2.0
Slide 27: 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 Q3 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 11.1 YoY actual changes -14.0% -14.8% -9.5%
Slide 28: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of September 30, 2018, the total number of issued shares of SOCIÉTÉ BIC was 46,650,783 shares, representing: • 67,994,195 voting rights, • 66,652,584 voting rights excluding shares without voting rights. Total number of treasury shares held at the end of September 2018:
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 growth or Comparative basis: at constant currencies and constant perimeter. Figures at constant perimeter exclude the impacts o
Slide 30: Agenda
AGENDA (dates to be confirmed) 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 3Q and 9M 2018 Results Presentation 30
Slide 31: 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 32: Q3 & 9M 2018 Results
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