Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — Q3 & 9M 2021 Earnings Presentation
36 slides from Societe Bic Sa's earnings presentation, Oct 27, 2021
Slide 1: BIC Q3 & 9M 2021 Results
BIC Q3 & 9M 2021 RESULTS October 27, 2021 1
Slide 2: 9M 2021 Key Takeaways
9M 2021 KEY TAKEAWAYS Q3 results exceeded our expectations, 9 months Net Sales on a comparative basis above 2019 levels in almost all regions – Full Year 2021 Net Sales guidance further upgraded • Mid-single digit growth in the U.S pocket lighter market and solid performance in Latin America drove F
Slide 3: Q3 & 9M 2021 Key Financial Figures
Q3 & 9M 2021 KEY FINANCIAL FIGURES € NET SALES ADJUSTED EBIT ADJUSTED EPS FREE CASH Margin % FLOW(3) Q3 2021 Q3 2021 Q3 2021 Q3 2021 478.4 M€ 82.5 M€ 1.28€ 128.6 M€ Change at CC(1) +8.5% 17.2% +21.9% Change at CB (2) +5.0% 9M 2021 9M 2021 9M 2021 9M 2021 1,395.1 M€ 248.6M€ 3.80€ 232.3 M€ Change at C
Slide 4: 9M 2021 Net Sales Growth on a Comparative Basis
9M 2021 NET SALES GROWTH ON A COMPARATIVE BASIS BIC’s main countries Mexico India 65% 57% growth on a comparative basis 49% 9m 2021 / 9M 2020 41% Brazil 33% United States 25% Italy UK 17% France Spain Group +16.1% 9% Australia 1% Canada -7% 100 The bubble size is representative of 9M 2021 Net Sales
Slide 5: 9M 2021 Net Sales Growth on a Comparative Basis: 2021/2019 Trends
9M 2021 NET SALES GROWTH ON A COMPARATIVE BASIS 2021 / 2019 trends 30% 20% North America Middle-East and Europe Africa growth on a comparative basis Latin 10% America 9m 2021 / 9M 2019 Group 0% +0.7% -10% -20% Asia incl. India* -30% -40% 100 M€ The bubble size is representative of 9M 2021 Net Sales
Slide 6: Category Snapshot
CATEGORY SNAPSHOT* HUMAN EXPRESSION FLAME FOR LIFE BLADE EXCELLENCE Stationery Market Evolution Lighters Market Evolution Shaver Market Evolution Total Market BIC share Total Market BIC share Market BIC share (value) (pts) (value) (pts) (value) (pts) France -1.2% -0.3 France +3.1% +0.1 France +3.5%
Slide 7: 2021 Back-to-School Season
2021 BACK-TO-SCHOOL SEASON United States Mexico • Total Market up close to 30%, driven by Pencils, • Total Market up 26.4%, Coloring and Correction driven by Gel Pens and • +1.9 points market share Mechanical Pencils gains for BIC products, with • BIC performance affected strong growth in Ball-Pens
Slide 8: Focus on 9M 2021 Lighter Performance in the U.S.
FOCUS ON 9M 2021 LIGHTER PERFORMANCE IN THE U.S. Market Trends(1) BIC Sell-in (Estimates) 131 Pocket Lighters 19 6 6 100 5.9% 4.5% 0.5% -0.4% 9M 2020 Market Distribution gains Pricing and 9M 2021 evolution* others YTD Sept 2020 YTD Sept 2021 Market Value BIC Value BIC EZ Reach Quarterly Market Share
Slide 9: Inflation in Raw Material and Sea Freight Cost
INFLATION IN RAW MATERIAL AND SEA FREIGHT COST PLASTICS METALS NATURAL GAS SEA FREIGHT 10 450 Average Sea Freight 9 500 multiplied by 3 in 2021 (USD per 40ft container– Drewvry Index) 6 030 5 300 2 915 2 215 1 815 1 850 Jan-19 May-19 Sep-19 Jan-20 May-20 Sep-20 Jan-21 May-21 Sep-21 Jan-19 May-19 Sep
Slide 10: 9M 2021 Net Sales Evolution
9M 2021 NET SALES EVOLUTION +14.6% +16.1% -4.5% +2.8% +0.2% 1,395.1 3.7 - 55.6 FX impact 35.8 -55.6 M€ In M€ 1,217.8 BRL USD MXN -10.8 -39.6 +1.3 RUB UAH -3.5 JPY -0.4 193.4 ZAR INR +1.2 -1.2 AUD +1.4 CAD +0.7 GBP +1.0 Other -2.3 9M 2020 Net Sales Change on a comparative FX impact Perimeter impact A
Slide 11: Q3 2021 Net Sales Evolution
Q3 2021 NET SALES EVOLUTION +8.2% +5.0% +0.2% +2.5% +0.5% 478.4 2.5 21.8 0.9 11.2 FX impact 0.9 M€ 441.9 BRL USD In M€ +0.5 -2.7 MXN +1.9 RUB UAH -0.1 CAD +0.7 ZAR +0.9 GBP +0.8 AUD +0.2 Other +0.3 Q3 2020 Net Sales Change on a comparative FX impact Perimeter impact Argentina Q3 2021 Net Sales as re
Slide 12: Category Financial Performance
CATEGORY FINANCIAL PERFORMANCE HUMAN EXPRESSION FLAME FOR LIFE BLADE EXCELLENCE 9 Months Net Sales growth at 9 Months adjusted EBIT margin 9 Months Net Sales growth at 9 Months adjusted EBIT 9 Months Net Sales growth 9 Months adjusted EBIT Constant Currencies Constant Currencies margin at Constant C
Slide 13: 9M 2021 Key Components of Change in Adjusted EBIT
9M 2021 KEY COMPONENTS OF CHANGE IN ADJUSTED EBIT (aEBIT) 14.5% 17.8% aEBIT MARGIN aEBIT MARGIN 5.8% - 0.7% 0.1% - 1.5% 0.8% - 1.2% Of which: Price & Mix: +0.6 pts Raw Materials: +0.2 pts FX: -0.1pts 9M 2020 Adjusted Change in GP * Operating leverage Increase in Brand Increase in Freight & Increase
Slide 14: Q3 2021 Key Components of Change in Adjusted EBIT
Q3 2021 KEY COMPONENTS OF CHANGE IN ADJUSTED EBIT 18.9% 17.2% aEBIT MARGIN aEBIT MARGIN 2.1% 0.2% - 0.7% - 0.8% - 1.2% - 1.3% Of which: Price & Mix: -0.3 pts Raw Materials: -0.6 pts FX: +1.8 pts Q3 2020 Adjusted Change in GP * Operating leverage Increase in Brand Increase in Freight & Increase in OP
Slide 15: Q3 & 9M 2021 Profit and Loss Account
Q3 & 9M 2021 PROFIT AND LOSS ACCOUNT In million euros Q3 2020 Q3 2021 9M 2020 9M 2021 Net Sales 441.9 478.4 1,217.8 1,395.1 Gross Profit 214.0 242.9 585.2 716.7 EBITDA* 181.0 136.7 247.3 470.2 Adjusted EBIT* 83.3 82.5 176.2 248.6 9M 2021 non-recurring items: • Sale of Clichy Headquarters: 167.7 M€ N
Slide 16: CAPEX – Depreciation & Amortization
CAPEX – DEPRECIATION & AMORTIZATION 250 1.05 0.84 200 0.80 0.85 0.79 Other Stationery 17% 17% 150 0.65 9M 2021 CAPEX: 99 44 M€ 100 0.45 83 73 Shavers Lighters 58 30% 36% 55 50 44 0.25 0 0.05 9M 2020 FY 2020 9M 2021 CAPEX Depreciation & Amortization CAPEX to D&A Ratio 16
Slide 17: Working Capital
WORKING CAPITAL Inventories by category: Other Products 2% December BIC September September Shavers 2020 23% In million euros 2020 2021 Total Working 549.2 458.0 495.5 Capital Stationery Of which inventories 418.0 379.0 441.8 48% Of which Trade and other 481,5 409.6 483.7 receivables Of which Trade
Slide 18: 30 September 2021 Net Cash Position
30 SEPTEMBER 2021 NET CASH POSITION In million euros Operations Net Cash From Operating activities +276.6 M€ 7.2 80.9 0.5 0.3 475.4 59.7 177.7 31.2 336.3 44.3 183.9 December 2020 Operating cash Change in CAPEX Proceeds from Acquisitions Dividend Share buyback Net cash from Others September Net Cash
Slide 19: Revised 2021 Market Assumptions
REVISED 2021 MARKET ASSUMPTIONS* LIGHTERS STATIONERY SHAVERS (pocket) Slight increase (vs flat to High-single digit decrease EUROPE Flat to slight increase slight increase) (vs. flat) Low-single to mid-single Low- single digit decrease High-single digit increase NORTH AMERICA (vs. mid-single digit i
Slide 20: 2021 Main Net Sales, Adjusted EBIT Margin and Free Cash Flow Drivers
2021 MAIN NET SALES, ADJUSTED EBIT MARGIN AND FREE CASH FLOW DRIVERS Organic Growth New businesses Line Extensions & RGM Volumes Djeep, Rocketbook, New Products Market Share Gains (Price and Blade excellence Promotions) Net Sales Flat Gross Profit Margin Improved Adjusted EBIT Margin Increase in Bra
Slide 21: 2021 Outlook Update
2021 OUTLOOK UPDATE1 • Given the solid nine months performance and current market assumptions, we upgrade our FY 2021 forecast and now expect to deliver above 14% Net Sales growth at constant currencies. • The fourth quarter will be affected by . raw materials and freight & distribution cost increas
Slide 22: Thank You
THANK YOU 22
Slide 23: Appendix
APPENDIX 23
Slide 24: 9M 2021 Net Sales Breakdown
9M 2021 NET SALES BREAKDOWN BY CATEGORY BY GEOGRAPHY North America Other products 43% 1% Human Europe Blade 32% Excellence Expression 22% 38% Asia & Oceania (Including India) Latin America 5% Middle East 14% & Africa Flame for Life 6% 39% 24
Slide 25: Main Exchange Rate Evolution vs. Euro
Q3 & 9M 2021 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average rates Average rates % of sales 9M 2020 9M 2021 % of change % of sales Q3 2020 Q3 2021 % of change US Dollar 39% 1.17 1.18 US Dollar 42% 1.12 1.20 -6.2% -1.3% Brazilian Real 7% 6.26 6.17 1.4% Brazilian Real 6% 5.69 6.37 -10.7% Mexic
Slide 26: Group Quarterly Figures
GROUP QUARTERLY FIGURES Restated for Unallocated Group Costs In million euros Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Net Sales 415.4 544.8 488.0 501.2 1 949.4 357.0 418.9 441.9 410.1 1 627.9 411.0 505.7 478.4 YoY actual changes 0.0% +0.2% +1.8% -1.9% 0.0% -14.1
Slide 27: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY In million euros Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Europe Net Sales 122.8 167.9 143.5 124.7 558.9 119.1 138.6 147.2 112.3 517.3 125.2 166.8 155.4 YoY actual changes -1.2% -4.6% +4.0% +2.7% -0.1% -3.0% -17.4% +2.6% -9.9%
Slide 28: Human Expression
HUMAN EXPRESSION Restated for Unallocated Group Costs In million euros Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Net Sales 148.3 252.5 204.3 169.3 774.4 148.3 252.5 204.3 169.3 774.4 126.9 166.9 161.3 120.5 575.6 131.1 202.2 197.5 YoY
Slide 29: Flame for Life
FLAME FOR LIFE Restated for Unallocated Group Costs In million euros Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Net Sales 149.7 169.9 161.9 197.4 679.0 149.7 169.9 161.9 197.4 679.0 121.0 147.3 171.1 178.7 618.1 174.5 192.9 170.7 YoY actual
Slide 30: Blade Excellence
BLADE EXCELLENCE Restated for Unallocated Group Costs In million euros Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Net Sales 109.0 115.5 114.9 123.5 463.0 109.0 115.5 114.9 123.5 463.0 102.0 98.6 102.9 100.6 404.2 96.4 104.0 104.6 YoY actual
Slide 31: Other Products
OTHER PRODUCTS Restated for Unallocated Group Costs In million euros Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Net Sales 8.3 7.0 6.9 10.9 33.1 8.3 7.0 6.9 10.9 33.1 7.0 6.1 6.6 10.3 30.0 9.0 6.6 5.7 YoY actual changes -40.0% -56.3% -37.8% -
Slide 32: Unallocated Costs
UNALLOCATED COSTS Restated for Unallocated Group Costs In million euros Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 EBIT -12.6 -37.6 -14.9 -21.5 -86.7 -18.8 -20.1 -14.5 -30.5 -84.0 146.8 -16.5 -16.3 Adjusted EBIT -12.6 -10.6 -10.0 -15.9 -49.1 -17.0 -17.2 -13.2 -21.0
Slide 33: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of September 30, 2021, the total number of issued shares of SOCIÉTÉ BIC is 45,395,857 shares, representing: • 66,774,760 voting rights • 65,929,685 voting rights excluding shares without voting rights Total number of treasury shares held at the end of September 2021: 815
Slide 34: 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 35: Market Data Sources
MARKET DATA SOURCES Sources: market share data in value Stationery • France: IRI YTD SEP-21 – Modern Trade only • UK: IRI YTD SEP-21 - Modern Trade only • US: NPD YTD SEP 21 - est. 95% market coverage including Coloring • Brazil and Mexico: Nielsen YTD AUG-21 - Modern Trade only, est. 16% market cov
Slide 36: 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