Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — FY2023 Earnings Presentation
43 slides from Societe Bic Sa's earnings presentation, Feb 20, 2024
Slide 1: BIC Q4 & FY 2023 Results Presentation
BIC Q4 & FY 2023 Results Presentation February 20, 2024
Slide 2: Full Year 2023 Key Takeaways
Full Year 2023 Key Takeaways Gonzalve Bich Chief Executive Officer 2
Slide 3: Strategic Plan: 2023 Achievements
Strategic Plan: 2023 Achievements Deliver mid-single Growing Free Cash Flow Funding profitable Sustainable digit annual Net Sales aEBIT margin generation >€200 growth shareholder return growth million Net Sales aEBIT Free Cash Return to 4 Growth1 margin2 Flow3 Capex Shareholder +9.2% +70bps €249 mil
Slide 4: 2023 Key Takeaways
2023 Key Takeaways • Delivered solid results in line with our strategic goals through disciplined execution • Focused on consumer centricity through innovative products and successful new launches • Boosted marketing capabilities with impactful campaigns that drove category growth • Expanded in geog
Slide 5: Progress on all Strategic Plan KPIs in 2023
Progress on all Strategic Plan KPIs in 2023 Commercial Consumer Omnichannel Geographic Operational Execution Concentricity & 1 excellence Expansion Excellence (RGM ) Innovation 2 3 +21.4% +13% +27% 5.8% 2 2 Net Sales per growth in Net sales growth in EZ Reach lighter’s US 240bps Gross profit improve
Slide 6: Delivering on our ESG Goals
Delivering on our ESG Goals Writing the Future, 2023 Achievements Together commitments: Safe working environment +37% improvement in lost time incidents versus Zero accidents by 2025 prior year 80% of BIC sites with zero accidents in 2023 Improving lives through education Estimated number of childre
Slide 7: Sustained Shareholder Remuneration
Sustained Shareholder Remuneration 220 210 in million euros 60 €2.85 €1.42 100 134 40 Ordinary Dividend1 Exceptional Dividend2 117 120 for 2023 fiscal year 7 39 39 2023 Payout 50% ratio3 110 95 110 120 81 up to 2024 Share Buyback program 2020 2021 2022 2023 2024e €40m Ordinary Exceptional Share divi
Slide 8: Operational and Consolidated Results
Q4 & FY 2023 Operational and Consolidated Results Chad Spooner Chief Financial Officer 8
Slide 9: 2023 Key Financial Figures
2023 Key Financial Figures Net Sales Adjusted1 EBIT Adjusted1 EPS Free Cash Flow1 €2,263m €333m €5.70 €249m Change at constant Change as reported Change as reported Net Cash Position currency +6.9% +11.3% €385m +9.2% Change on a aEBIT Margin comparative basis1 14.7% +3.5% 1 See glossary in appendix
Slide 10: 2023 Category Performance Snapshot
2023 Category Performance Snapshot Human Expression Flame For Life Blade Excellence €845.9m Net Sales €851.5m Net Sales €536.8m Net Sales +10.2%1 +3.3%1 +17.8%1 €60.5m aEBIT 2 €290.4m aEBIT 2 €68.4m aEBIT 2 7.2% margin 34.1% 12.7% margin margin Double digit Net Sales Value proposition Solid commerci
Slide 11: Q4 2023 Net Sales Evolution
Q4 2023 Net Sales Evolution in million euros +2.4 pts 12.4 526.7 23.5 +2.0 pts1 526.1 10.5 0 pts 0.0 -4.5 pts -0.1% as reported Q4 2022 Net Sales Change on a comparative FX impact Perimeter impact Argentina Q4 2023 Net Sales as reported basis as reported 1 Argentina increase at constant currency +13
Slide 12: FY 2023 Net Sales Evolution
FY 2023 Net Sales Evolution +3.5 pts in million euros 69.3 +0.7 pts2 76.4 2,263.2 18.9 +0.2 pts 2,233.9 3.4 -3.1 pts1 +1.3% as reported FY 2022 Net Sales Change on a comparative FX impact Perimeter impact Argentina FY 2023 Net Sales as reported basis as reported 1 See detail of FX impact by currency
Slide 13: Q4 2023: Key Components of Change in adjusted EBIT Margin
1 Q4 2023: Key Components of Change in adjusted EBIT Margin +5.4 pts +0.2 pts 13.8% +0.0 pts 8.2% Q4 2022 Adjusted EBIT Change in Gross Profit Increase in Brand Support Increase in OPEX and Other Q4 2023 Adjusted EBIT Expenses 1 See glossary in appendix 13
Slide 14: FY 2023: Key Components of Change in adjusted EBIT Margin
1 FY 2023: Key Components of Change in adjusted EBIT Margin +2.4 pts 14.7% 14.0% -0.5 pts -1.2 pts FY 2022 Adjusted EBIT Change in Gross Profit Increase in Brand Support Increase in OPEX and Other FY 2023 Adjusted EBIT Expenses 1 See glossary in appendix 14
Slide 15: FY 2023 Profit & Loss Account
FY 2023 Profit & Loss Account From adjusted EBIT to Net Income in million euros Q4 2022 Q4 2023 FY 2022 FY 2023 FY 2023 non-recurring items included: €(1.4)m related to Lucky Stationery Ltd (Nigeria), Rocketbook earnout and acquisition costs Adjusted EBIT1 43.2 72.7 311.7 333.1 €(4.4)m related to un
Slide 16: Working Capital
Working Capital in million euros Receivables in Days1 2.4 2.6 21.8 72 61 57 560.0 Dec-21 Dec-22 Dec-23 557.0 19.0 38.7 10.1 Inventory in Days2 199 186 183 Dec-21 Dec-22 Dec-23 Dec-22 Net Inventory Trade & other Trade & other Other Investing FX & others Dec-23 Receivables Payables receivables Activit
Slide 17: Capex and Depreciation & Amortization
Capex and Depreciation & Amortization in million euros 1.04x 0.97x Human Other Expression 0.77x (including IT) 18% 30% 99 105 101 98 96 75 FY 2023 Flame For CAPEX: Life 22% €105m FY 2021 FY 2022 FY 2023 Blade CAPEX Depreciation & Amortization CAPEX to D&A Ratio Excellence 30% 17
Slide 18: FY 2023 Net Cash Position
FY 2023 Net Cash Position in million euros 469.2 115.9 104.6 Net Cash from Operating 110.2 385.4 359.9 Activities €353.3m 3.2 116.2** Free Cash Flow: €248.7m December 2022 Net Operating cash flow Change in working CAPEX Dividend paid Share buyback net Others December 2023 Net Cash Position capital a
Slide 19: Building on 2023's momentum throughout 2024
Building on 2023’s momentum throughout 2024 Gonzalve Bich Chief Executive Officer 19
Slide 20: Strategic Plan: 2024 Growth Momentum Drivers
Strategic Plan: 2024 Growth Momentum Drivers Commercial Innovation and scaled Market Excellence new businesses Expansion • Expand multi-channel distribution • Launch and expand trade-up in • Drive Go-to-Market Excellence across • Further focus on RGM to improve product mix regions and divisions port
Slide 21: Driving Incremental Growth with Innovation in 2024
Driving Incremental Growth with Innovation in 2024 The Smoothest BIC 4 Colours Experience! 21
Slide 22: Driving Growth in Core through Marketing Execution in 2024
Driving Growth in Core through Marketing Execution in 2024 22
Slide 23: Leveraging our Engineering and Manufacturing Excellence in 2024
Leveraging our Engineering and Manufacturing Excellence in 2024 to Deliver More in 2025 Skin Creative Case Study Driving quality, scale, and efficiency beyond BIC’s core products by leveraging our capabilities with BIC engineering and manufacturing excellence. At the forefront of technology and proc
Slide 24: 2024 outlook
2024 outlook Full Year 2024 Net Sales are expected Free Cash Flow is to grow between expected to be +5% and +7% at above €220 million constant currency1 We expect a slight in 2024. driven by volumes, improvement in price and mix. adjusted EBIT margin in Full Year 2024. 1 excluding Argentina net sale
Slide 25: 2025 Financial Objectives for Horizon
2025 Financial Objectives for Horizon Balancing key initiatives to maximize returns Deliver Sustainable Annual net sales growth: Growth 5 - 7%1 Adjusted2 EBIT margin improvement: Execute Operating Efficiencies ~150 bps from 2022 level of 14.0% Capture Cash Free Cash Flow above €220 million in 2024 E
Slide 26: Thank you!
Thank you! 26
Slide 27: Appendix
Appendix 27
Slide 28: 2024 Market Assumptions
2024 Market Assumptions1 North America Europe Low to mid-single digit decrease Low to mid-single digit decrease 2 Low to mid-single digit decrease Low-single digit decrease 3 Flat to Low-single digit decrease Low to mid-single digit increase Latin America India Low to mid-single digit increase Mid t
Slide 29: 2024 Drivers to Ensure Profitable Growth
2024 Drivers to Ensure Profitable Growth Organic Growth Line Extensions & RGM Volumes New Products (Price. Mix and Promotions) Net Sales Net Sales Gross Profit aEBIT margin Higher input costs inflation ✓ Favorable operating leverage Unfavorable fixed cost absorption = Slight increase in Brand Su
Slide 30: FY 2023 Net Sales Breakdown
FY 2023 Net Sales Breakdown By Category By Geography Human Expression 37% 39% North America 30% Europe Flame for Life 38% Blade Excellence 24% 20% Latin 7% America Middle East 4% & Africa Asia & Oceania Other (including India) products 1% 30
Slide 31: Sensitivity to Net Sales and Income before Tax: USD/EUR Fluctuation
Sensitivity to Net Sales and Income before Tax: USD/EUR Fluctuation Sensitivity to Net Sales and Income Before Tax: FY 2022 FY 2023 USD/EUR Fluctuation +/- 5% change in USD impact on Net Sales 2.1% 1.9% +/- 5% change in USD impact on Income before Tax1 1.3% 0.8% 1 Corrected to take into account the
Slide 32: FY 2023 Foreign Currencies Impact on Net Sales
FY 2023 Foreign Currencies Impact on Net Sales 0.5 Total impact: -3.1 pts1 0.1 USD BRL MXN CAD NGN TRY RUB/UAH ZAR Other -0.2 -0.2 -0.4 -0.4 -0.6 -0.8 -1.1 1 Excluding ARS 32
Slide 33: FY 2023 Net Sales Main Exchange Rate Evolution vs Euro
FY 2023 Net Sales Main Exchange Rate Evolution vs Euro Average rates % of sales FY 2022 FY 2023 % of change US Dollar 39% 1.05 1.08 -2.6% Brazilian Real 9% 5.44 5.40 0.7% Mexican Peso 6% 21.19 19.16 10.6% Argentina Peso 3% 137.42 321.68 -57.3% Canadian dollar 3% 1.37 1.46 -6.1% Australian dollar 2%
Slide 34: Group Quarterly Figures
Group Quarterly Figures In million euros Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Net Sales 411.0 505.7 478.4 436.8 1,831.9 515.7 611.4 580.1 526.7 2,233.9 538.7 638.2 560.3 526.1 2,263.3 YoY actual changes +15.1% +20.7% +8.2% +6.5% +12.5% +25.5% +20.
Slide 35: Group Quarterly Figures by Geography
Group Quarterly Figures by Geography In million euros Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Europe Net Sales 125.2 166.8 155.4 123.1 570.6 142.8 185.1 169.6 139.1 636.7 151.5 202.3 170.7 141.3 665.9 YoY actual changes +5.2% +20.3% +5.6% +9.6% +10.3
Slide 36: Human Expression Quarterly Figures
Human Expression Quarterly Figures In million euros Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Net Sales 131.1 202.2 197.5 153.1 683.8 168.3 269.7 225.2 175.6 838.8 177.5 282.9 214.7 170.9 845.9 YoY actual changes +3.3% +21.2% +22.4% +27.0% +18.8% +28.4
Slide 37: Flame For Life Quarterly Figures
Flame For Life Quarterly Figures In million euros Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Net Sales 174.5 192.9 170.7 180.4 718.5 226.4 209.7 216.0 219.6 871.6 228.5 205.8 200.1 217.1 851.5 YoY actual changes +44.2% +31.0% (0.2) % +0.9% +16.2% +29.7%
Slide 38: Blade Excellence Quarterly Figures
Blade Excellence Quarterly Figures In million euros Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Net Sales 96.4 104.0 104.6 96.2 401.2 113.5 126.8 132.6 124.0 497.0 124.7 143.6 139.1 129.4 536.8 YoY actual changes (5.5) % +5.4% +1.6% (4.4) % (0.7) % +17.7
Slide 39: Other Products Quarterly Figures
Other Products Quarterly Figures In million euros Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Net Sales 9.0 6.6 5.7 7.1 28.4 7.6 5.2 6.3 7.5 26.6 8.1 5.9 6.5 8.6 29.1 YoY actual changes +29.4% +8.7% (14.9) % (31.1) % (5.3) % (16.5) % (21.1) % +11.5% +5.9
Slide 40: Unallocated Costs Quarterly Figures
Unallocated Costs Quarterly Figures In million euros Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 EBIT 146.8 (16.5) (16.3) (22.4) 91.6 (20.3) (18.8) (21.1) (22.8) (83.0) (21.2) (21.1) (24.1) (19.1) (85.5) Adjusted EBIT1 (20.0) (16.5) (16.3) (26.2) (79.1)
Slide 41: Capital and Voting Rights
Capital and Voting Rights As of December 31, 2023, the total number of issued shares of Société BIC is 42,270,689 shares representing: • 62,516,167 voting rights. • 62,064,440 voting rights excluding shares without voting rights Total number of treasury shares held at the end of December 2023: 451,7
Slide 42: 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 impact of
Slide 43: 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’s 2022 Universal