Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — FY2021 Earnings Presentation
47 slides from Societe Bic Sa's earnings presentation, Feb 15, 2022
Slide 1: BIC Full Year 2021 Results
BIC FULL YEAR 2021 RESULTS February 15, 2022 1
Slide 2: 2021 Bringing Horizon to Life
2021 BRINGING HORIZON TO LIFE Gonzalve Bich – Chief Executive Officer 2
Slide 3: 2021 Key Takeaways
2021 KEY TAKEAWAYS Delivering Strong and Sustainable Performance by Bringing Horizon to Life Resilience in the face of external Strong Cash headwinds through Flow and Solid manufacturing & Balance Sheet procurement efficiencies Robust Net Sales Progress in our Growth fueled by Sustainable Consumer-c
Slide 4: FY 2021 Key Financial Figures
FY 2021 KEY FINANCIAL FIGURES NET SALES ADJUSTED EBIT ADJUSTED EPS FREE CASH FLOW* 1,831.9 M€ 279.8 M€ 4.29€ 205.7 M€ Change at Constant Change at Actual Net Cash Position aEBIT Margin aEBIT Margin Currencies +15.3% Currencies 400 M€ 15.3% +15.9% +21.2% Change on a Comparative Basis +12.2% *Free Cas
Slide 5: 2021 Key Non-Financial Figures
2021 KEY NON-FINANCIAL FIGURES On track to achieve Writing The Future 2025 Commitments Acting against Climate Change FY 2020 FY 2021 GHG Emissions (Scope 1 & 2 –tCO2eq) - Market-based 33,185 35 310 GHG Emissions (Scope 3 –tCO2eq) 785,000 805,000 % of Renewable Electricity (Writing the Future, Togeth
Slide 6: Sustained Shareholder Remuneration
SUSTAINED SHAREHOLDER REMUNERATION Consistent with Horizon plan use of cash policy euros Ordinary Dividend* for 2021 136 2.15 fiscal year 117 121 7 40 39 million euros ESG Share Buyback 110 40 program launched in January 96 2022 81 2020 2021 2022 Ordinary dividend paid (fiscal year N-1) Share buybac
Slide 7: Market Share in Strategic Segments and Countries
MARKET SHARE IN STRATEGIC SEGMENTS AND COUNTRIES % of countries we held or grew market share in 2021* Human 70% Expression UK : +1.7 pts Brazil : +2.6 pts Mexico: +0.8 pts Flame For Life 60% US: +1.2 pts Germany +1.0 pts South Africa: +2.6 pts Blade 70% Excellence Brazil: held share Mexico: held sha
Slide 8: Successful Omnichannel E-commerce Strategy
SUCCESSFUL OMNICHANNEL E-COMMERCE STRATEGY 10% of BIC total FY 2021 Net Sales, including Rocketbook • Overall performance well balanced by channels • Omniretailers (+23%) • Outstanding performance in the US: > +50%* • Pure Players & Market Places (+17%) • Successful International deployment: > + 20%
Slide 9: Strengthening Digital Capabilities
STRENGTHENING DIGITAL CAPABILITIES Balanced e-commerce eco-system Omniretailers 44% Pure Players and Market Places 43% Direct-To- 14% Consumers Estimates based on Inkbox 2021 Net Sales
Slide 10: Progress in Our Sustainable Development Journey
PROGRESS IN OUR SUSTAINABLE DEVELOPMENT JOURNEY Innovative New Products with Reduced Environmental Impact BIC® Cristal® Re'New BIC® ReVolution BIC® BAMBOO Hybrid shaver SD range 10
Slide 11: Invent the Future Operational Targets
INVENT THE FUTURE OPERATIONAL TARGETS Objectives achieved one year ahead of plan Omnichannel Innovation Distribution +21% increase of 10% of Total Net new patent Sales from e- submissions in 2021 commerce, including Rocketbook, in 2021 Effectiveness Consumer-Centric 50M€ annual benefits Brands from
Slide 12: Operational and Consolidated Results
2021 OPERATIONAL AND CONSOLIDATED RESULTS Chad Spooner – Chief Financial Officer 12
Slide 13: Human Expression
HUMAN EXPRESSION 683.8 M€ Net Sales, + 21.3% at Constant Currencies 36.8 M€ aEBIT, 5.4% margin Robust Commercial Execution in Europe, Latin America, Middle- East and Africa Market Share gains in strategic segments, including Coloring, driven by solid understanding of Consumer changing habits Success
Slide 14: Flame For Life
FLAME FOR LIFE 718.5 M€ Net Sales, +20.3% at Constant Currencies 270.2 M€ aEBIT, 37.6% margin Leadership position strengthened the US • Improved Pocket Lighter market dynamics • 1.2 points Market Share gains in value driven by distribution gains, positive price and mix impact, successful Revenue Gro
Slide 15: Blade Excellence
BLADE EXCELLENCE 401.2 M€ Net Sales, +3.0% at Constant Currencies 57.4 M€ aEBIT, 14.3% margin On-going success of Added-Value Products and Products with reduced environmental impact • 3 blades in Latin America • 4 and 5 Blades in the US • Hybrid range and BIC Bamboo in Europe Challenging competitive
Slide 16: Q4 2021 Net Sales Evolution
Q4 2021 NET SALES EVOLUTION +0.5pts 436.8 +2.6pts 2.4 10.6 +2.9pts 11.7 410.1 +0.5pts 2.0 +6.5% Q4 2020 Net Sales Change on a comparative FX impact Perimeter impact Argentina Q4 2021 Net Sales as reported basis as reported 16
Slide 17: FY 2021 Net Sales Evolution
FY 2021 NET SALES EVOLUTION +12.2% -2.8% +2.9% +0.2% 1 831.9 6.1 195.4 43.9 46.4 1,627.9 +12.5 % FY 2020 Net Sales Change on a comparative FX impact Perimeter impact Argentina FY 2021 Net Sales as reported basis as reported 17
Slide 18: Q4 2021 Key Components of Change in Adjusted EBIT
Q4 2021 KEY COMPONENTS OF CHANGE IN ADJUSTED EBIT 12.9% 0.3 pts -2.5 pts -1.6 pts 7.1% Of which: 0.5 pts Price & Mix: +0.1 pts - 1.3 pts Raw Materials: -2.7 pts Air & Sea Freight: -1.4 pts - 1.2 pts FX: +0.8 pts Q4 2020 Adjusted Change in GP * Operating leverage Increase in Brand Increase in Freight
Slide 19: Key Components of Change in Adjusted EBIT (aEBIT)
FY 2021 KEY COMPONENTS OF CHANGE IN ADJUSTED EBIT (aEBIT) 4.6 pts -0.9 pts 0.2 pts 15.3% 14.1% 0.0 pts - 1.5 pts - 1.2 pts Of which: Price & Mix: +0.7 pts Raw Materials: -0.5 pts Air & Sea Freight: -0.8 pts Manufacturing efficiencies: +1.0 pts FX: +0.1pts FY 2020 Adjusted Change in GP * Operating le
Slide 20: Input Cost Inflation
INPUT COST INFLATION Impact on Gross Profit in 2021 Q4 21 / Q4 20 FY 21 / FY 20 Raw - 11 M€ - 8 M€ Materials Sea & Air Freight - 6 M€ - 14 M€ Import Costs Total - 17 M€ - 22 M€ 20 20
Slide 21: Invent the Future Savings
INVENT THE FUTURE SAVINGS Objective achieved one year ahead of schedule 50 M€ 25 M€ 5 M€ 2019 2020 2021 2022… 21 21
Slide 22: From Adjusted EBIT to Net Income
FY 2021 FROM ADJUSTED EBIT TO NET INCOME In million euros FY 2020 FY 2021 Adjusted EBIT* 229.1 279.8 Of which • 167.7 million euros from Clichy Non-recurring items** 72.3 (172.2) Headquarters sale • 3.0 million euros from Pimaco EBIT 156.8 452.0 divestiture Finance revenues/costs (1.4) (4.2) Income
Slide 23: CAPEX – Depreciation & Amortization
CAPEX – DEPRECIATION & AMORTIZATION 250 1.30 200 Human Other Expression 10% 19% 150 0.84 124 0.77 FY 2021 93 99 98 CAPEX: 100 83 75 75 M€ 50 Blade Excellence Flame For Life 31% 40% 0 FY 2019 FY 2020 FY 2021 CAPEX Depreciation & Amortization CAPEX to D&A Ratio 23 23
Slide 24: Working Capital
WORKING CAPITAL In million euros December 2020 December 2021 RECEIVABLES IN DAYS* Total Working Capital 458.0 488.3 Of which inventories 379.0 490.2 Of which Trade 72 71 72 and other receivables 409.6 418.2 Dec-19 Dec-20 Dec-21 Of which Trade and other payables (99.5) (149.1) INVENTORIES BY CATEGORY
Slide 25: Full Year 2021 Net Cash Position
FULL YEAR 2021 NET CASH POSITION In million euros Operations Net Cash From Operating activities +280.6 M€ 7.2 129.7 410.3 80.9 74.9 132.5 0.4 4.9 400.1 39.2 183.9 December 2020 Operating cash Change in CAPEX Proceeds from Acquisitions Dividend Share buyback Net cash from Others December 2021 Net Cas
Slide 26: Building on 2021's Momentum
2022 BUILDING ON 2021’S MOMENTUM 26
Slide 27: 2022 Market Assumptions
2022 MARKET ASSUMPTIONS* LIGHTERS STATIONERY SHAVERS (pocket) Low to mid-single digit Flat to low-single digit Flat to low-single digit EUROPE increase decrease increase NORTH AMERICA Slight decrease to flat Low to mid-single digit Slight decrease decrease Low to mid single digit LATIN AMERICA Doubl
Slide 28: Organic Growth Expected in All Divisions
ORGANIC GROWTH EXPECTED IN ALL DIVISIONS Innovation and Commercial Excellence Solid Growth in Latin America and India Market Share gains in the US driven by improved Supply Chain Human Solid performance in e-commerce Expression Growth in all regions ▪ Djeep Product expansion in Europe Flame ▪ North
Slide 29: 2022 Main Net Sales, Adjusted EBIT and Free Cash Flow Drivers
2022 MAIN NET SALES, ADJUSTED EBIT AND FREE CASH FLOW DRIVERS Organic Growth New businesses Line Extensions & RGM Volumes New Products Market Share Gains Inkbox (Price and Promotions) Net Sales Gross Profit Adjusted EBIT Increase in volume Price increases Increase in Brand Support to support 2022 Ne
Slide 30: 2022 Outlook
2022 OUTLOOK Building on 2021's momentum and the execution of the Horizon plan, we expect Full Year 2022 Net Sales to grow between +7% and +9% at constant currencies. This includes 1 to 2 points growth from Inkbox*. All divisions will contribute to organic growth. Consistent with our Horizon plan's
Slide 31: Thank You
THANK YOU 31
Slide 32: Appendix
APPENDIX 32
Slide 33: FY 2021 Net Sales Breakdown
FY 2021 NET SALES BREAKDOWN BY CATEGORY BY GEOGRAPHY North America Other products 43% 2% Human Europe Blade Expression 31% Excellence 37% 22% Asia & Oceania (Including India) Latin America 5% Middle East 15% & Africa Flame for Life 6% 39% 33
Slide 34: FY 2021 Non-Recurring Items
FY 2021 NON-RECURRING ITEMS ▪ + 167.7 million euros from Clichy Headquarters sale gain in Q1 2021 ▪ + 3.0 million euros from Pimaco divestiture gain in Q1 2021 ▪ - 4.2 million euros of restructuring costs related to BIC's transformation plan ▪ - 0.4 million euros of earn out following Rocketbook acq
Slide 35: Foreign Currencies Impact on Net Sales
FOREIGN CURRENCIES IMPACT ON NET SALES Q4 2021 FY 2021 MXN CAD ZAR GBP AUD 6.4 2.0 1.7 1.9 1.6 1.9 JPY PLN INR RUB/UAH -0.4 -0.6 -0.9 -2.5 + 11.7 million euros Other -5 BRL -10.4 - 43.9 million euros 1.0 1.0 0.7 0.7 0.6 0.4 0.4 0.5 USD -33.2 BRL USD MXN RUB/UAH CAD ZAR GBP AUD Other 35
Slide 36: Main Exchange Rate Evolution vs. Euro
Q4 & FY 2021 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average rates Average rates % of sales FY 2020 FY 2021 % of change % of sales Q4 2020 Q4 2021 % of change US Dollar 39% 1.19 1.14 US Dollar 41% 1.14 1.18 -3.6% 4.4% Brazilian Real 8% 6.44 6.38 0.9% Brazilian Real 6% 5.88 6.38 -7.8% Mexican
Slide 37: Group Quarterly Figures
GROUP QUARTERLY FIGURES Restated for Unallocated Group Costs In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Net Sales 357.0 418.9 441.9 410.1 1 627.9 411.0 505.7 478.4 436.8 1 831.9 YoY actual changes -14.1% -23.1% -9.4% -18.2% -16.5% +15.1% +20.7% +8.2% +6.5% +12.5% Yo
Slide 38: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Europe Net Sales 119.1 138.6 147.2 112.3 517.3 125.2 166.8 155.4 123.1 570.6 YoY actual changes -3.0% -17.4% +2.6% -9.9% -7.5% +5.2% +20.3% +5.6% +9.6% +10.3% YoY changes on a comparativ
Slide 39: Human Expression
HUMAN EXPRESSION Restated for Unallocated Group Costs In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Net Sales 126.9 166.9 161.3 120.5 575.6 131.1 202.2 197.5 153.1 683.8 YoY actual changes -14.4% -33.9% -21.1% -28.8% -25.7% +3.3% +21.2% +22.4% +27.0% +18.8% YoY changes
Slide 40: Flame For Life
FLAME FOR LIFE Restated for Unallocated Group Costs In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Net Sales 121.0 147.3 171.1 178.7 618.1 174.5 192.9 170.7 180.4 718.5 YoY actual changes -19.2% -13.3% +5.7% -9.5% -9.0% +44.2% +31.0% -0.2% +0.9% +16.2% YoY changes on a
Slide 41: Blade Excellence
BLADE EXCELLENCE Restated for Unallocated Group Costs In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Net Sales 102.0 98.6 102.9 100.6 404.2 96.4 104.0 104.6 96.2 401.2 YoY actual changes -6.4% -14.6% -10.4% -18.5% -12.7% -5.5% +5.4% +1.6% -4.4% -0.7% YoY change on a con
Slide 42: Other Products
OTHER PRODUCTS Restated for Unallocated Group Costs In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Net Sales 7.0 6.1 6.6 10.3 30.0 9.0 6.6 5.7 7.1 28.4 YoY actual changes -15.7% -12.3% -3.8% -6.3% -9.4% +29.4% +8.7% -14.9% -31.1% -5.3% YoY changes on a constant currency
Slide 43: Unallocated Costs
UNALLOCATED COSTS Restated for Unallocated Group Costs In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 EBIT -18.8 -20.1 -14.5 -30.5 -84.0 146.8 -16.5 -16.3 -22.4 91.6 Adjusted EBIT* -17.0 -17.2 -13.2 -21.0 -68.4 -20.0 -16.5 -16.3 -26.2 -79.1 (*) See glossary 43
Slide 44: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of December 31, 2021, the total number of issued shares of SOCIÉTÉ BIC is 44,677,929 shares, representing: • 65,654,533 voting rights • 65,391,627 voting rights excluding shares without voting rights Total number of treasury shares held at the end of December 2021: 262,9
Slide 45: 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 46: Market Data Sources
MARKET DATA SOURCES Sources: market share data in value Stationery • UK: IRI YTD DEC-21 - Modern Trade only • Brazil and Mexico: Nielsen YTD DEC-21 - Modern Trade only, est. 16% market coverage for Brazil and 24% for Mexico Lighters: • Germany: Nielsen YTD 12-DEC-21 – Modern Trade only • U.S: IRI YT
Slide 47: 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 Universal Regi