Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — Investor Presentation (September 2023)
41 slides from Societe Bic Sa's investor presentation, Sep 11, 2023
Slide 1: BIC Investor Update 2023
BIC Investor Update 2023 September 11, 2023
Slide 2: The BIC Growth Proposition
The BIC Growth Proposition A consumer-centric brand, meeting rapidly changing needs • 29 million BIC products bought daily, driven by value and strong brand A world leader One of the most recognized • BIC is successfully expanding into new segments to meet new needs brands, creating high • Strong tr
Slide 3: Agenda
Agenda Investor Update 2023 Introduction: Horizon Interim Review 1. Deliver Sustainable Growth 2. Execute Operating Efficiencies 3. Capture Cash Every Day Closing Remarks 3
Slide 4: Horizon Strategic Plan: Ensure Profitable Growth
Horizon Strategic Plan: Ensure Profitable Growth Expand total Leverage addressable Capitalizing on innovation BIC’s unique markets in fast- capabilities and growing segments, identity, consumer- global centric brands and and apply enhanced manufacturing commercial market reach excellence execution Th
Slide 5: Horizon Strategic Plan Interim Review
Horizon Strategic Plan Interim Review On track to deliver or exceed Horizon objectives (November 2020): objectives Accelerate growth: reframe categories to accelerate towards 01 mid-single digit annual Net Sales growth trajectory Net Sales added: ~€600 million1 Improve efficiency and robust Free Cash
Slide 6: Objectives for Horizon: 2025
Objectives for Horizon: 2025 Balancing key initiatives to maximize returns Annual net sales growth: Growth 5 - 7%* Adjusted EBIT margin improvement: ~150 bps from 2022 level of 14.0% Cash Free Cash Flow objectives: generation of an aEBIT additional €20 million annually from 2024, above its current >
Slide 7: Horizon Priorities to 2025
Horizon Priorities to 2025 Invested in new Growth enablers Horizon Capabilities to drive growth and margin Deliver Sustainable Execute Operating Capture Cash Growth Efficiencies Every Day 1. Unleash power of 1. Procurement to 1. Reducing Cash our Core Products lower costs Conversion Cycle via Commer
Slide 8: 1. Deliver Sustainable Growth
1. Deliver Sustainable Growth Chester Twigg, Chief Commercial Officer Sara LaPorta, Chief Strategy and Business Development Officer 8
Slide 9: Deliver Sustainable Growth
Deliver Sustainable Growth Go-to-Market Marketing Digital Commercial Growth Drivers Innovation M&A * People & Capabilities *RGM: Revenue Growth Management CONFIDENTIAL 9
Slide 10: Go-to-Market Excellence Drives Growth in Developed and Developing Markets
Go-to-Market Excellence Drives Growth in Developed and Developing Markets • Western Europe leveraging Regional Net Sales Growth Highlights mental and physical availability (All Segments) to outpace low single-digit market growth • Distribution and in-store gains in Brazil delivered strong growth: +9
Slide 11: Marketing Excellence Drives Growth across Categories
Marketing Excellence Drives Growth across Categories • EZ Reach drove 5.7% value share1 and sold 35 million units since launch • EasyRinse delivered 1.2% value share2 and was #1 mentioned sub- brand on social media, 2.8x more than Gillette • Rocketbook achieved 8.2% market share3 of the notebook cat
Slide 12: Delivering Growth in eCommerce
Delivering Growth in eCommerce • 10.5% of net sales sold Focus on driving results online 39% Share of Search 21% • 27% net sales CAGR vs 13% in 2020 Vs 18% in 2020 10% Market CAGR and outpacing market 75% of portfolio is Price stable Stationery business >2x in 2023 40% in 2020 sold online • 75% reta
Slide 13: Delivering Growth via Revenue Management
Delivering Growth via Revenue Management • Approximately +1% Price + Mix benefit ahead of inflation. • 7% decrease in Trade Spend as a percentage of net sales from more effective investments. Source: BIC data for full year 2021, 2022, and 2023 projected Price + Mix benefits. 13
Slide 14: Driving Value Through Simplified Portfolio
Driving Value Through Simplified Portfolio Portfolio Simplification Results 3 000.0 220 • 4,400 SKUs Net sales 210 per SKU 30% eliminated +70% 200 2 500.0 2023 est. vs 2019 190 Simplifies our portfolio Net Sales 180 and makes it easier to 170 shop 2 000.0 160 150 • Increasing gross 140 profit per SKU
Slide 15: People & Capability Excellence
People & Capability Excellence OneBIC • Shared KPIs across 2,500 Upskilled Talent Global Scale- Performance Culture team members to Value Local Relevance • Organization built with • Center of excellence • One global commercial • Right team in place with combination of legacy and creation to establis
Slide 16: Deliver Sustainable Growth
Deliver Sustainable Growth Commercial Growth Drivers Business Product Model Innovation Innovation Innovation M&A CONFIDENTIAL 16
Slide 17: Product Innovation Contributing to Growth
Product Innovation Contributing to Growth Consumer-Driven Innovation Approach: Example EasyRinse • Innovation vitality Insight 92% users dislike razor clogging growth: ~10% of net sales from innovation introduced in last 3 years Tech 21 patents filed • Patents granted Results • 94% of consumers love
Slide 18: Innovation Driving Trade-up in Core
Innovation Driving Trade-up in Core 4Color Commercial EZ Reach Expanding Soleil Sensorial Innovation Driving Trade-up Consumer Occasions Driving Growth ANSP vs. BIC cat ~6x ~2x ~4x avg. Unit +10% +40% +40% Growth Source: BIC Financials (SFM, HFM), Unit Growth year-to-date June 30, 2023 vs 2022 ANSP:
Slide 19: Business Model Innovation Adding Growth through BIC Blade Tech
Business Model Innovation Adding Growth through BIC Blade Tech Wet Shave - Total Addressable Market Price • B2B partnerships with fast growing, Refillable systems aspirational shave €8 billion disruptor brands Incumbent • Contributed 15% of Brands Blade Excellence growth in 2022 +10 points of ~€800
Slide 20: Deliver Sustainable Growth
Deliver Sustainable Growth Commercial Growth Drivers M&A Innovation M&A CONFIDENTIAL 20
Slide 21: M&A Strategy
M&A Strategy BIC’s M&A Framework Core More Clear • BIC market position • Total Addressable Market: >€1 billion Targeting • Synergy potential • Growth: +10% CAGR Criteria • ROCE: > BIC WACC • Margin neutral / accretive by year 3 • Leadership: #1 or #2 • M&A platform for add-ons • ROCE: > BIC WACC lon
Slide 22: Tapping New Growth Areas Through M&A
Tapping New Growth Areas Through M&A New Focus Area: • €170 million capital Temporary Tattoos deployed through Horizon* • M&A contributed €75 million to Net Sales in 2022 New Focus Area: Digital Writing *BIC data from full year 2020 - June 30, 2023 22
Slide 23: Acquiring New Capabilities: AMI
Acquiring New Capabilities: AMI Screens Brush • Disruptive magnetic technology to enable Digital Writing and Expression Analog • B2B partnership opportunities Pen Writing with Consumer Electronic Core tech: Algorithm Manufacturer • Large €17 billion total Sensors Magnet addressable market by 2025 (C
Slide 24: 2. Execute Operating Efficiencies
2. Execute Operating Efficiencies Chad Spooner Chief Financial Officer 24
Slide 25: Horizon Priorities to 2025
Horizon Priorities to 2025 Deliver Sustainable Execute Operating Capture Cash Growth Efficiencies Everyday 1. Unleash power of our 1. Procurement to lower 1. Reducing Cash Core Products via Costs Conversion Cycle Commercial Growth through Working Capital Drivers 2. Value Engineering for Management l
Slide 26: New Capabilities Delivering Efficiencies
New Capabilities Delivering Efficiencies Manufacturing & Supply Procurement Value Engineering Chain Efficiencies Centralized procurement policies Leverage Capability to focus on From cost of production to and execution, leveraging BIC’s consumer value through product landed cost and service levels gl
Slide 27: Value Added Procurement Lowering Operating Costs
Value Added Procurement Lowering Operating Costs Driving incremental cost savings €40 million • Direct and indirect Value Added Procurement procurement = cost savings lowers costs and and efficiency gains mitigates supply risk Cross-functional execution and • Counters input cost inflation collaboratio
Slide 28: Value Engineering Lifts all our Categories
Value Engineering Lifts all our 3 Categories Eco-conception Recycled plastic in new Reduction in metal Launched Value Engineering in First major revamp of displays reduces costs* consumption: blade 2022: iconic BIC 4 color: thickness reduced lighter, modern clip with same quality • 200 ideas submitt
Slide 29: Manufacturing and Supply Chain Efficiencies
Manufacturing and Supply Chain Efficiencies • End-to-End supply chains in Europe, Americas and Middle East Africa • Optimize footprint to counter global supply chain challenges Service Level Profitability Flexibility & Environment Reliability • Increase flexibility and agility in our supply chains to
Slide 30: 3. Capture Cash Every Day
3. Capture Cash Every Day Chad Spooner Chief Financial Officer 30
Slide 31: Horizon Priorities to 2025
Horizon Priorities to 2025 Deliver Sustainable Execute Operating Maximise Free Cash Growth Efficiencies Flow 1. Unleash power of our 1. Procurement to lower 1. Reducing Cash Core Products via Costs Conversion Cycle Commercial Growth through Working Capital Drivers 2. Value Engineering for Management
Slide 32: Maximizing Free Cash Flow
Maximizing Free Cash Flow Adding Cash Conversion Cycle (CCC) discipline across BIC • Delivering >€200 million Free Cash Flow for 5th successive year Yearly CCC Reduction + Stringent Capex Controls • Free Cash Flow objectives: generation of an additional €20 million annually from 2024, above its curr
Slide 33: Reducing Collection Time in Accounts Receivable
Reducing Collection Time in Accounts Receivable • Operational excellence to Improved processes and strong relationships driving lower DSO drive faster collections • Improved terms with Days Sales Outstanding customers to reduce DSO • Resulted in 11 days 71 72 11-day improvement = Horizon target achi
Slide 34: Streamlined Inventory Management
Streamlined Inventory Management • Driving inventory Targeting 10-day inventory improvement per year optimization through Integrated Business Process Days Inventory Outstanding 200 • Network optimization: 190 bringing inventory closer 180 to customers Response to 170 global supply 160 chain challeng
Slide 35: Closing Remarks
05 Closing Remarks 35
Slide 36: A Great Deal Achieved… with more to do!
A Great Deal Achieved… Significant opportunity upside: Work in progress on multiple key initiatives with more to do! • RGM momentum • Maximize use of integrated supply chain • Impact of data insights and new management talent • Inventory optimization Capabilities Impact to be developed and captured
Slide 37: Objectives for Horizon: 2025
Objectives for Horizon: 2025 Balancing key initiatives to maximize returns Deliver Sustainable Annual net sales growth: Growth 5 - 7%* Execute Operating Adjusted EBIT margin improvement: Efficiencies ~150 bps from 2022 level of 14.0% Capture Cash Free Cash Flow objectives: generation of an Every Day
Slide 38: BIC Investor Update 2023
BIC Investor Update 2023 September 11, 2023
Slide 39: Appendix
05 Appendix 39
Slide 40: Glossary
Glossary • Constant currency basis: constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates. • Adjusted EBIT: adjusted means excluding normalized items. • Adjusted EBIT margin: adjusted EBIT as a percentage of Net Sales. • Free Cash
Slide 41: Disclaimer
Disclaimer DISCLAIMER A press release related to this presentation is also available on the BIC website (www.bic.com). This presentation includes certain statements that are forward-looking about our plans, strategies and objectives through to 2025 as well as statements with respect to net sales, ad