Societe BIC SA · EURONEXT:BB
Societe BIC SA — Shareholder Meeting (May 2009)
54 slides from Societe BIC SA's shareholder meeting presentation, May 14, 2009
Slide 1: 2008 Annual General Meeting 14 May 2009
2008 Annual General Meeting 14 may 2009
Slide 2: Honor the past, invent the future
“Bigg \; Honor the past, invent the future
Slide 3: Full Year 2008 & 1st Quarter 2009 results
Full Year 2008 & 1st Quarter 2009 results
Slide 4: 2008 Net Sales
2008 Net Sales 2003 – 2008 NET SALES €1420.9 m growth average at constant currencies: 7.2% 7.0% +4.8% 5.0% 4.7% 2.5% 2.4% 2003 2004 2005 2006 2007 2008 4 Change in net sales at constant currencies
Slide 5: 2008 Income From Operations margin
2008 Income From Operations margin 2003 – 2008 Average Normalized IFO €214.3 m Normalized IFO* margin: 16.6% 17.9% 17.5% 17.4% 16.2% 15.5% 15.1% 2003** 2004 2005 2006 2007 2008 5 * Normalized* IFO margin (excluding exceptional items and real estate gains) as reported
Slide 6: 2008 key figures and highlights by categories
2008 key figures and highlights by categories Net Sales Normalized* Normalized* Stationery growth1 IFO growth1 IFO margin •Maintained market share in Europe and North America, despite declining markets -0.4% -3.8% 14.1% •Good performance in Latin America •Promotional imprinted business experienced a
Slide 7: 2008: From IFO to Group Net Income
2008: From IFO to Group Net Income BIC Group In million euros 2007 2008 IFO 255.8 209.6 Interest income 11.2 10.0 +1.3 million Finance costs - 5.8 -3.3 euros Income before Tax 261.2 216.3 Income tax - 87.7 - 71.4 Tax rate 33.6% 33.0% Group Net Income 172.9 144.9 EPS 3.51 3.00 7
Slide 8: Free Cash Flow
Free Cash Flow 2003 – 2008 Average In million euros Free Cash Flow: 137 M€ 159.6 157.2 147.3 143,0 116.0 98.9 2003 2004 2005 2006 2007 2008 Cash from operating activities – cash from investing activities / after acquisitions 8
Slide 9: Shareholders' remuneration
Shareholders’ remuneration In euros 1.35 1.35 1.30 1.15 1.00 0.80 0.80 0.90 0.58 0.65 2000 2001 2002 2003 2004 2005 2006 2007 2008 Dividend per share Special dividend 9
Slide 10: Group Q1 2009 Key figures
Group Q1 2009 Key figures Net Sales: 308.4 million euros % of change +0.1% Significant slowdown in Europe and continued growth in Latin America -0,8% As reported At constant currencies Income from Operations: 36.3 million euros Margin Gross Profit margin impacted by higher 12,4% 11,8% production cos
Slide 11: Group Q1 2009 Key figures
Group Q1 2009 Key figures EPS: +7.7% increase In euros 0,52 0,56 Strong cash Q1 2008 Q1 2009 generation due to CAPEX monitoring Net Cash Position and improved working capital In million euros 155 147* Q1 2008 Q1 2009 11 *: excluding phasing impact due to Cello acquisition
Slide 12: Our Vision
° BIC) Our Vision Ne Inventive and Reliable choices Everywhere, Every time.
Slide 13: An international & experienced Management team
Our fundamentals An international & experienced Management team 13
Slide 14: Our fundamentals: Products, Brand, Balance Sheet
Our fundamentals Products Brand Strong Worldwide Balance Positions Sheet 14
Slide 15: Quality products
Quality products • Easy answers for everyday needs • Quality and safety for 40 million products that consumers choose to buy each day, from the simplest to the most sophisticated 15
Slide 16: Quality and best value products
Quality and best value products 16
Slide 17: Strong Brand
Strong Brand…S 17
Slide 18: Strong Brand
Strong Brand...S EARFER 2 Ok o % abe hi der il Pars a) tw ts oy £m e Ne
Slide 19: Worldwide positions
Worldwide positions Stationery Lighters 10% market share 35% market share N°2 N°1 N°2 Shavers 20% market share of one-piece shavers in USA and Europe 19
Slide 20: Strong balance sheet
Strong balance sheet 91.4bn euros assets 91.2bn euros shareholders’ equity 9 211m euros net cash position 31 December 2008 20
Slide 21: BIC today: Our strengths
‘ BIC) BIC today Our strengths
Slide 22: Stationery: Quality at a BIC price
Stationery: Quality at a BIC price More than 3m outlets worldwide Historical and Iconic close products relationship with the trade Strong Worldwide brands leadership positions Innovation Strong positions in major market segments Consumer trust for more than 50 years 22
Slide 23: Stationery: long lasting products
Stationery: long lasting products 1959 1969 23
Slide 24: Stationery: long lasting products
Stationery: long lasting products 50 years for 40 years for the 4 colors 24
Slide 25: Stationery: on-going innovation
Stationery: on-going innovation Index Dispenser Ball Pen - BIC® Cristal® Large Roller - BIC® Triumph™ Mechanical Pencil – BIC® AI™ Colour felt pens BIC® Kids Colour & Erase Correction Tape - Tipp-Ex® Easy Refill 25
Slide 26: Lighters: the only worldwide branded manufacturer
Lighters: the only worldwide branded manufacturer Consumer preference Market leadership Brand awareness Estimated market shares > 60% > 60% US Disposable Pocket Lighter (in value) BIC 86% 35% < 30% Competitor A 10% Competitor B 8% Europe worlwide North America Latin America Pocket lighters in market
Slide 27: Lighters: BIC, the only worldwide branded manufacturer
Lighters: BIC, the only worldwide branded manufacturer Safety Quality Prevention and education 27
Slide 28: Lighters: continue to offer more value-added products
Lighters: continue to offer more value-added products North America Europe Worldwide Latin America Europe 28
Slide 29: Shavers: quality and innovation at a reasonable price (men)
Shavers: quality and innovation at a reasonable price 3 blades men One-piece shavers – France (€) 1.49 €1 1.26 1.28 0.78 0.57 BIC 3 BIC Ecolution BIC Comfort 3 Schick Xtreme Gillette Sensor Advance 3 3 29 Non promoted price per volume – January 2009
Slide 30: Shavers: quality and innovation at a reasonable price (women)
Shavers: quality and innovation at a reasonable price 3 blades women One-piece shavers – France (€) 1.49 €1 1.26 1.28 0.78 Pure3 Lady Soleil Disp Sensor3 Disp Extreme3 Beauty Disp 30 Non promoted price per volume – January 2009
Slide 31: Shavers today: key products on all our markets
Shavers today: key products on all our markets The BIC® Soleil range for women BIC 3™ and BIC Comfort 3™ Advance for men BIC Comfort 3™ Action in Latin America 31
Slide 32: Shavers: quality and innovation at a reasonable price
Shavers: quality and innovation at a reasonable price New 4 individually moveable blades technology for one-piece and refillable shavers New BIC® Ecolutions™: the 1st BIC® shaver with a bioplastic handle New BIC® Easy: the 1st “all in one” shaver: 1 handle + 6 cartridges 32
Slide 33: On-going improvement of cash generation
On-going improvement of cash generation In million euros 90* 83 70 71 77 70 CAPEX 2003 2004 2005 2006 2007 2008 2009 Est. Inventory turnover in number of days 164 148 Working Capital Dec 07 Dec 08 33 *: including Shelton offices for 10 million euros
Slide 34: Flexibility: 2009 cost reduction plan
Flexibility 2009 cost reduction plan to adapt to recent evolution of our key markets Approximately 50 million euros partially offset by a negative goodwill on APP Costs Î Net impact: appr. 35 million euros fully in 2009 accounts App. 30 million euros annualized gains starting in 2010 Savings with fu
Slide 35: A common sense approach to sustainable development
A common sense approach to sustainable development A stationery range made from recycled material A shaver made from bioplastic 35
Slide 36: BIC tomorrow
BIC tomorrow
Slide 37: Two recent acquisitions
Two recent acquisitions Antalis Promotional •Acquisition of 100% of Antalis Promotional Products Products (APP) for 33.5 million euros PENS Strategic • Acquisition of 40% of Cello® Pens writing Instrument partnership business for €124 M* with a call option to increase stake with Cello® to 55% in 5 y
Slide 38: Why the promotional products industry?
Why the promotional products industry? A large and long-term growth market 12 bn euros manufactured value* (estimated) 13% of companies’ total communication spending 4% annual average growth during the last 20 years 38 *: Excluding Asia Pacific
Slide 39: Why the promotional products industry?
Why the promotional products industry? A highly diverse & fragmented product offer Others 27% 27% 31% 31% Wearable Awards 7% 7% 6% 10% 6% 10% 6% 6% 7% 6% Writing Calendars 7% 6% instruments Office business Drinkware Bags 39
Slide 40: Why the promotional products industry?
Why the promotional products industry? An historic legitimacy for BIC in that business N°1 branded supplier in imprinted writing instruments and lighters Strong positions in its markets (Europe, US, Latin America) 40
Slide 41: Why APP?
Why APP? 2 complementary business models Vertical integration Horizontal integration •Excellence in order entry and •European supplier with a wide range of distributors imprinting •Perceived as specialized player •A complete range of non- imprinted of products •Specialized in sourcing 41
Slide 42: Why APP?
Why APP? Reinforce BIC’s leadership position Imprinted and A complete range non-imprinted of products and approach services with 2 separate entities Potential leverage Global sourcing in North America capacities and Latin America 42
Slide 43: Our international footprint
Our international footprint 2008 net sales breakdown by geography MEAA Europe 6% 6% 20% 20% 33% 33% Latin America 41% 41% North America 43
Slide 44: Stationery – our footprint end of 2008
Stationery – our footprint end of 2008 Writing instrument market shares N°1 N°2 in Europe in North America (15% market share) (13% market share) N°1 in Africa N°1 N°2 in Latin America in Oceania (24% market share) (16% market share) 44
Slide 45: Stationery Consumer – Where will the growth come from?
Stationery Consumer – Where will the growth come from? 2006-2007 market trends by geographies (in value) Market growth 14% 12% China 10% 8% India Eastern 6% Europe Latin 4% America 2% Western Europe North America Japan & Oceania -1% Size in million euros -3% 45 BIC Estimate & Published Research - 20
Slide 46: India
India Strong potential for GDP per A dynamic and competitive capita within the next 10 private sector representing years more than 75% of total GDP > 1,600 > 1,100 Increasing demand Rural areas > 800 for quality/branded 70% products from growing middle- 560 class 460 Increasing penetration of Urban
Slide 47: Writing instruments in India
Writing instruments in India Total pen market: ~ 345 million Euros* Low but increasing Highly fragmented per capita pen consumption distribution network Modern General retail stores 5% Stationery cc. 17 24% shops 25% cc.3 46% India US Traditional « Mom&Pop » stores * 63.6 INR = 1 euro (January 20, 2
Slide 48: Writing instruments in India: A clear market leader
Writing instruments in India A clear market leader Lexi, Flair, Linc, Add Pens, Montex, GM Pens, Luxor, Today’s, Rotomac PENS 37% 63% 48
Slide 49: Cello Pens
Cello Pens The leading Indian writing instrument brand 90% unaided 1 bn pens awareness per year The widest distribution network in India Cello Pens are distributed nationwide through Î 731,000 outlets all across India Îa network of 42 super-stockists and 4,200 distributors 49
Slide 50: Cello Pens: Strong growth - High Profitability
Cello Pens Strong growth - High Profitability Net Sales (in million INR) Approximately 30% FY07-08 EBIT margin rs 4,100 y ea % 5 A GR 2 1 es C sal 2,300 PENS PENS 02-03 07-08 50
Slide 51: Strong benefits for both companies
Strong benefits for both companies Extend BIC stationery Develop emerging segments business to one of the most in India (Correction, Marking dynamic writing instrument and Mechanical Pencils) markets in the world Sharing best practices in new product Partner with development and the N°1 brand manufa
Slide 52: An enhanced growth profile for both companies
An enhanced growth profile for both companies Writing instrument market shares N°1 N°2 in Europe in North America (15% market share) (13% market share) PENS N°1 in India (37% market share) N°1 in Africa N°1 N°2 in Latin America in Oceania (24% market share) (16% market share) 52
Slide 53: Honor the past, invent the future
“Bigg \; Honor the past, invent the future
Slide 54: Slide 54