Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — H1 2018 Earnings Presentation
31 slides from Societe Bic Sa's earnings presentation, Aug 1, 2018
Slide 1: 1st Half 2018 Results
1st Half 2018 Results August 1st, 2018
Slide 2: H1 Highlights & Category Spotlights
H1 HIGHLIGHTS & CATEGORY SPOTLIGHTS Gonzalve BICH 2Q and H1 2018 Results Presentation 2
Slide 3: First Half 2018 Key Messages
First Half 2018 Key Messages Solid Challenging Operating market and Cash Flow business Continued Generation environment investment in 2018 Outlook targeted Brand unchanged Support and Operations 2Q and H1 2018 Results Presentation 3
Slide 4: Q2 & H1 2018 Financial Performance
Q2 & H1 2018 Financial Performance Net Sales Normalized IFO Normalized EPS Net Cash Change on a Margin Position comparative basis Q2 2018 Q2 2018 Q2 2018 543.9 M€ 118.7 M€ H1 2018 1.99 € -2.3% 21.8% 55.1 M€ H1 2018 H1 2018 H1 2018 959.3 M€ 188.2 M€ 3.05 € -1.9% 19.6% 2Q and H1 2018 Results Presentat
Slide 5: Category Spotlights
Category Spotlights Stationery Lighters Shavers Net sales Net sales Net sales Q2 249.5 M€ - 1.4 %* Q2 165.0 M€ - 4.5 %* Q2 113.5 M€ - 0.3 %* H1 401.3 M€ - 0.1 %* H1 317.7 M€ - 2.6 %* H1 210.5 M€ - 3.1 %* NIFO margin NIFO margin NIFO margin Q2 37.4 M€ 15.0 % Q2 63.3 M€ 38.4 % Q2 16.9 M€ 14.9 % 47.0 M
Slide 6: Consolidated Results
CONSOLIDATED RESULTS Jim DiPietro 2Q and H1 2018 Results Presentation 6
Slide 7: Net Sales Evolution
Q2 and H1 2018 NET SALES EVOLUTION FX translation impact 599.0 -0.8% -2.3% -6.1% 543.9 Q2 -36 M€: 2018 USD -15M€ BRL -7M€ ARS -2M€ INR -2M€ MXN -4M€ RUB UAH -2M€ Others -4M€ Q2 2017 Net Sales* Perimeter impact Change on a FX translation impact Q2 2018 Net Sales comparative basis 1072.3 -1.2% -1.9% -
Slide 8: From Net Sales to IFO
H1 2018 FROM NET SALES TO IFO Change on a Change on a BIC Group Change as constant comparative In million euros H1 17* H1 18 reported currency basis* basis* Net Sales 1072.3 959.3 -10.5% -3.1% -1.9% Gross Profit 560.5 507.4 -9.5% Normalized Income 218.2 188.2 -13.7% from Operations 68.7 million euro
Slide 9: Key Components of Normalized Income from Operations Margin
Q2 and H1 2018 KEY COMPONENTS OF NORMALIZED* INCOME FROM OPERATIONS MARGIN 22.9% +0.5 +0.2 -1.8 21.8% • Promotions and investments related to consumer and business Q2 development support accounted for in Gross Profit 2018 Margin : -0.1 • Advertising, consumer and trade support : +0.3 Q2 2017 Normali
Slide 10: From NIFO to Group Net Income
H1 2018 FROM NIFO TO GROUP NET INCOME BIC Group In million euros H1 2017* H1 2018 Normalized IFO 218.2 188.2 Restructuring costs related primarily to BIC Graphic -24.6 - Cello Goodwill Impairment - -68.7 IFO 193.6 119.5 Finance revenue/costs 0.0 5.8 Income before Tax 193.6 125.3 Income tax -58.1 -54
Slide 11: Working Capital
WORKING CAPITAL June 30, December June 30, BIC Group 2017(1) 31, 2017 (1) 2018 In million euros 215.9 Total Working Stationery 222.9 730.8 580.0 695.3 Capital 131.9 Lighters 121.2 Of which June 469.7 429.0 470.2 inventories 2018 105.8 June Of which Trade Shavers 107.4 2017 and other 615.3 477.1 574.
Slide 12: Net Cash Position
NET CASH POSITION In million euros Operations +197.7 -114.6 -51.6 -157.8 204.9 Net Cash From Operating activities +83.1 M€ -22.5 -1.0 55.1 December 2017 Net Operating cash flow Change in working CAPEX Dividend payment Share buyback, Others June 2018 Cash Position capital and others exercise of stock
Slide 13: Looking Ahead
LOOKING AHEAD Gonzalve BICH 2Q and H1 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 2Q and H1 2018 Results Presentation 14
Slide 15: Appendix
APPENDIX 2Q and H1 2018 Results Presentation 15
Slide 16: Net Sales by Geography
Q2 and H1 2018 NET SALES BY GEOGRAPHY Q2 NET SALES H1 NET SALES -2.3% on a comparative basis -1.9% on a comparative basis 1.7% EUROPE 0.8% EUROPE NORTH -0.7% NORTH AMERICA AMERICA -0.5% -8.5% DEVELOPING DEVELOPING MARKETS -6.3% MARKETS * 2017 figures restated from IFRS15 2Q and H1 2018 Results Prese
Slide 17: Stationery Market Performances and BIC's Market Share
STATIONERY MARKET PERFORMANCES AND BIC’S MARKET SHARE Europe U.S. 0.2% 2017 May 2018 YTD BIC market BIC market share share +0.5 pts -0.8% +0.4 pts -0.9% 2017 June 2018 -2.2% YTD In Value Source: EU7 GFK MAY-2018 - 60% coverage (France, UK, Germany, Italy, Spain, Belgium, Greece/ US NPD YTD JUN-18 -9
Slide 18: US Shavers Market Performances and BIC's Market Share
SHAVERS US Market Performances and BIC’s Market Share Off-line Market Sales Q2 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% -3.1% -2.8% -3.1% 0.0 -4.1% -4.1% -4.1% -3.4% -3.9% -5.0% -0.5 -0.4 -0.5 -0.2 -0.5 -5.1% -1.0
Slide 19: H1 2018 Net Sales Breakdown
H1 2018 NET SALES BREAKDOWN BY CATEGORY BY GEOGRAPHY 3% OTHER 29% PRODUCTS 31% DEVELOPING EUROPE MARKETS 42% SHAVERS STATIONERY 22% 33% LIGHTERS NORTH AMERICA 40% 2Q and H1 2018 Results Presentation 19
Slide 20: Main Exchange Rate Evolution vs. Euro
Q2 and H1 2018 NET SALES Main exchange rate evolution vs. euro Average Average Average Average rate rate rate rate % of % of % of sales Q2 2017 Q2 2018 change % of sales H1 2017 H1 2018 change US Dollar 41% 1.10 1.19 -7.6% US Dollar 39% 1.08 1.21 -10.7% Brazilian Real 6% 3.55 4.30 -17.4% Brazilian R
Slide 21: 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 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 YoY actual changes
Slide 22: 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 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 Net Sales YoY
Slide 23: 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 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 YoY actual changes -0.4% -1.2% -0.2%
Slide 24: 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 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 YoY actual changes +0.1% -0.7% +5.6% +7
Slide 25: 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 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 YoY actual changes +4.8% +2.0% -1.1% +7.8
Slide 26: 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 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 YoY actual changes -14.0% -14.8% -9.5% -6.8% -11.6
Slide 27: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of June 30, 2018, the total number of issued shares of SOCIÉTÉ BIC was 46,645,433 shares, representing: • 68,003,531 voting rights, • 67,055,750 voting rights excluding shares without voting rights. Total number of treasury shares held at the end of June 2018: 947,781. 2
Slide 28: 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 29: Agenda
AGENDA (dates to be confirmed) Third Quarter 2018 Results 24 October 2018 Conference call 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 2Q and H1 2018 Results Presentation 29
Slide 30: 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 31: 1st Half 2018 Results
al . Ng > 1*t Half + as 2018 Results Fe