Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — Shareholder Meeting (May 2013)
51 slides from Societe Bic Sa's shareholder meeting presentation, May 15, 2013
Slide 1: Annual Shareholders Meeting
ANNUAL SHAREHOLDERS MEETING Clichy, 15 May 2013 contact@bicworld.com +33 (0)1 45 19 52 26
Slide 2: Honor the past… invent the future
« Honor the past… invent the future People are the cornerstone of our philosophy » Annual Shareholders Meeting - 15 May 2013
Slide 3: BIC in 2012
BIC IN 2012 Solid Performance of the Consumer Business in a challenging Environment Accelerated Investments in Research & Development, including Innovation and Manufacturing Capacities Strong Cash Generation Assemblée Annual Shareholders Générale du Meeting 15 mai- 2013 15 May 2013 3
Slide 4: BIC in 2012: Key figures
BIC IN 2012 Normalized Income Net sales from Operations +2.8% 19.7% Consumer business +5.3% Reported EPS Net Cash Position +11.2% 334.5 million euros Assemblée Annual Shareholders Générale du Meeting 15 mai- 2013 15 May 2013 4
Slide 5: Dividend
BIC IN 2012 Dividend Proposal to the AGM (May 15, 2013): 2.56 euros ordinary dividend** per share (+16.4%) in euros 5.00 5.56 4.29 3.43 3.51 3.11 3.00 3.15 2.56 2.15 2.20 1.90 1.80 1.35 1.35 1.40 1.3 1.15 1.00 1.00 0.90 2004 2005 2006 2007 2008 2009 2010 2011 2012 Attributed fiscal year Dividend Per
Slide 6: Total Cash returned to Shareholders
BIC IN 2012 Total Cash returned to Shareholders 191 In millions d’euros 192 1,6 159 163 150 148 101 85 41 42 72 107 104 86 91 67 49 49 40 26 2 122* 21 51 104 91 58 64 65 65 68 43 25 En 2004 En 2005 En 2006 In 2007 In 2008 In 2009 In 2010 In 2011 In 2012 Mar-13 Ordinary dividend Exceptional dividend
Slide 7: Net Cash Using
NET CASH USING Reinvest in the CAPEX BIC Group today in order to prepare the BIC Group of tomorrow. Bolt-on strategic acquisitions Ensure a steady 2011 Pay-out 2012 Pay-out Mid-term objective growth of the ratio ratio 50% ordinary dividend 44% 46% Extraordinary dividend Share buy-back Assemblée Annu
Slide 8: 2012 Consolidated Results and First Quarter 2013
2012 Consolidated Results and First Quarter 2013 Annual Shareholders Meeting - 15 May 2013
Slide 9: 2012: From Net Sales to IFO
2012: FROM NET SALES TO IFO Change at Change on a BIC Group constant comparative In million euros 2011 2012 Change currencies* basis* Net Sales 1,824.1 1,898.7 +4.1% +0.7% +2.8% Gross Profit 898.5 965.4 +7.4% Normalized IFO 362.4 373.8 +3.1% Income 339.7 370.5 +9.1% from Operations Assemblée Annual
Slide 10: 2012: Normalized Income from Operations Margin
2012: NORMALIZED INCOME FROM OPERATIONS MARGIN +1.5 19.9% 19.7% +0.5 20.2% -0.1 -0.5 -1.1 Investments in future growth 2011 normalized IFO Gross Margin Brand support Increase in fuel cell Other operating 2012 normalized IFO Special Premium 2012 normalized IFO margin expenses expenses margin impact m
Slide 11: 2012: From IFO to Group Net Income
2012: FROM IFO TO GROUP NET INCOME BIC Group In million euros 2011 2012 Normalized IFO 362.4 373.8 Non recurring items -22.7 -3.3 IFO 339.7 370.5 Interest income 10.6 12.5 Finance costs -1.4 -2.0 Income before Tax 348.8 381.0 Income tax -115.1 -121.6 Tax rate 33.0% 31.9% Income from associates 4.1 3
Slide 12: Continued Industrial Investments
CONTINUED INDUSTRIAL INVESTMENTS 52% Development CAPEX (capacities and new products) 5.3% 5.9% 6.6% 4.9% 3.4% 3.4% 125 89 83 77 63 53 2007 2008 2009 2010 2011 2012 Total Capex to sales Assemblée Annual Shareholders Générale du Meeting 15 mai- 2013 15 May 2013 12
Slide 13: Net Cash Position
NET CASH POSITION In million euros Operations Shareholders Remuneration 369.5 -37.9 -28.9 1.3 -125.4 329.5 25.5 334.5 -8.0 Net Cash From Operations: -189.5 -1.6 +302.7M€ December 2011 Cash from Impact of Other Cash Flow CAPEX Divestitures & 2011 Dividend Share buyback Exercise of stock Others Decemb
Slide 14: Group Q1 2013 key figures
Group Q1 2013 key figures Net Sales: 428.6 million euros +0.0% Consumer business +1.8% (88% of total sales) -0.7% Developed markets +2.0% Developing markets +1.5% -3.7% Advertising & Promotional As reported At constant On a comparative Products -11.2% currencies* basis* (12% of total sales) Normaliz
Slide 15: Group Q1 2013 Key figures
Group Q1 2013 Key figures EPS: -20.8% decrease Net Cash Position In euros In million euros 377.2 1.20 334.5 332.0 0.95 Q1 2012 Q1 2013 March 12 December 12 March 13 Assemblée Annual Shareholders Générale du Meeting 15 mai- 2013 15 May 2013 15
Slide 16: 2012 and 2013 Operational trends
2012 and 2013 Operational trends Annual Shareholders Meeting - 15 May 2013
Slide 17: BIC Stationery in 2012
BIC STATIONERY IN 2012 617.9 M€ Normalized 26M€ Net sales 15.3% CAPEX +2.6% IFO Margin +29% Market share gains Strong performance of France Benelux, Romania, and Poland Office Suppliers Channel once again impacted by the challenging economic environment Slight decrease of market share Elevated brand
Slide 18: New Products and line extension
BIC STATIONERY IN 2013 New Products and line extension Cristal Gel Refresh Erasable highlighter tape Annual Shareholders Meeting - 15 May 2013 18
Slide 19: BIC Needle Point Ink System
BIC STATIONERY IN 2013 BIC “Needle Point Ink System” A new generation of ink suitable for Asian writings Super smooth writing low viscosity Precise writing Point “needle” in 0.7mm & 0.5mm Available in 8 colors! Annual Shareholders Meeting - 15 May 2013 19
Slide 20: Touch Screen technology is creating a revolution
BIC STATIONERY IN 2013 The Touch Screen technology is creating a revolution, changing how people communicate, work and write A fast growing market New needs emerging on the market In million units 1240 1030 880 Note taking Drawing/ Sketching App App 2013 est. 2014 est. 2015 est. Learning how to writ
Slide 21: BIC Stylus: First multi-usage retractable Stylus
BIC STATIONERY IN 2013 BIC® Stylus : First multi-usage retractable Stylus at an affordable price 25 € 25 € 22 € 18 € 11 € 10 € 9€ 5€ 1.5 € BIC Competitor Competitor Competitor Competitor Competitor Competitor Competitor 1 2 3 4 5 6 7 Annual Shareholders Meeting - 15 May 2013 21
Slide 22: Construction of a writing instrument facility in Tunisia
BIC STATIONERY : CONSTRUCTION OF A WRITING INSTRUMENT FACILITY IN TUNISIA February 2012 : beginning of the construction of a writing instrument facility in Tunisia Objective : complete our production network in Africa and the Middle East in order to better meet the growing demand in this geographica
Slide 23: Cello Pens
CELLO 3 may 2013 : Finalization of the acquisition by BIC Group of the remaining 40% of the last (7th) stationery entity of Cello Group PENS April – October 2013 : call option to increase its ownership in Cello Pens from 40% to 55% More than 30% share of the Quality products Indian Pen market One of
Slide 24: BIC Lighters in 2012
BIC LIGHTERS IN 2012 551.0 M€ Normalized Industrial 29M€ Net sales 37.7% +4.3% IFO Margin Investments +30% Good performance of Eastern Europe Distribution gains in large countries (France, Italy) despite on-going imports of non- compliant Asian lighters Market share gains in both the U.S. and Canada
Slide 25: BIC Lighters in 2013
BIC LIGHTERS IN 2013 Europe North America Latin America Asia Annual Shareholders Meeting - 15 May 2013 25
Slide 26: Expansion of the worldwide production capacity
BIC LIGHTERS : EXPANSION OF THE WORLDWIDE PRODUCTION CAPACITY 2012 – 2013 : increase in production capacity and investments in new machines in our 4 plants of lighters • Redon in France • Tarragona in Spain • Milford in the United-States • Manaus in Brazil Objective : adapt our production to the gro
Slide 27: BIC Shavers in 2012
BIC SHAVERS IN 2012 373.5 M€ Normalized Industrial 40M€ Net sales 17.3% +10.1% IFO Margin Investments x2 Challenging environment in the southern countries Market share gains in most countries (France, Sweden, Greece, Ukraine) Success of Classic 3 blade products Continued market share gains in the U.
Slide 28: BIC Shavers in 2013
BIC SHAVERS IN 2013 Developing countries Europe : BIC Flex O3 Control U.S.: BIC Soleil Shave & Trim 3 spring-mounted blades Less irritations Easy to rinse (movable blades) Pivoting head Lubricating strip Lanolin & Vitamin E Moisturizing Skin softening & smoothing Sensitive green color Assemblée Annu
Slide 29: BIC Flex 4 for Latin America
BIC SHAVERS IN 2013 Developing countries Latin America: BIC® Flex 4 A 4 blades rechargeable shaver with moveable blade technology 4 moveable blade head A compelling offer (price + performance) to enter the emerging and evolving Latin American refillable shaver market New Handle Design Assemblée Annu
Slide 30: Expansion of packaging facility in Mexico
EXPANSION OF THE CAPACITY OF OUR PACKAGING FACILITY IN MEXICO Expansion of the capacity of our packaging facility in Mexico Objective : better serve the North American market and optimize freight costs Assemblée Annual Shareholders Générale du Meeting 15 mai- 2013 15 May 2013 30
Slide 31: BIC Other Products
BIC OTHER PRODUCTS Change in net sales on a comparative basis +27.8% +8.3% +8.2% 2010 2011 2012 Assemblée Générale du 15 mai 2013 31
Slide 32: BIC APP
BIC APP 291.1 M€ Normalized Net sales 7.6% CAPEX 9.8 M€ -9.2% IFO Margin STATIONERY Europe Continued very challenging economic environment in Southern countries North America Sales affected by the implementation of our new ERP (shipment delays) HARD GOODS Europe Strongly impacted by the economic sit
Slide 33: BIC APP history
BIC APP Mainly Internal growth Mainly External growth 1969 1970 2006 2007 2009 Products BIC enters the Antalis Norwood & geographical Promotional Atchison Promotional Promotional diversification Products (USA) Products Products (Europe, USA, Business (Europe) (USA) Latin America) Full range of imp
Slide 34: Focus on customer service & innovation
BIC APP IN 2013 Focus on customer service & innovation Assemblée Annual Shareholders Générale du Meeting 15 mai- 2013 15 May 2013 34
Slide 35: 2010-2012 Net sales evolution and normalized IFO margin
2010 - 2012 Net sales evolution on a comparative basis and normalized IFO margin Stationery Consumer Lighters +4.1% +6.7% +2.6% +11.6% +8.6% +4.3% 3 years average: 13.9% 3 years average: 37.7% 14.2% 15.3% 12.1% 36.2% 39.1% 37.7% 2010 2011 2012 2010 2011 2012 Shavers BIC APP -3.3% +7.6% +10.1% -10.4%
Slide 36: Group 2013 Outlook
GROUP 2013 OUTLOOK For the full year, we expect net sales on a comparative basis to grow in line Consumer with our mid-term objectives of +2% to +4%. Normalized IFO margin should Business be in the higher end of 15% to 20% mid-term objectives range. Advertising BIC APP full year 2013 net sales c
Slide 37: Invest today to better perform tomorrow
Invest today to better perform tomorrow Annual Shareholders Meeting - 15 May 2013
Slide 38: Research and Development
Invest today to better perform tomorrow Research and Development 33.5 24.5 23.8 24.5 23.2 23.5 21.8 20.3 2005 2006 2007 2008 2009 2010 2011 2012 1/3 of R&D spending dedicated to portable fuel cell device project Assemblée Annual Shareholders Générale du Meeting 15 mai- 2013 15 May 2013 38
Slide 39: Portable fuel cell device project
PORTABLE FUEL CELL DEVICE PROJECT A portable charger independent from electricity network Replacable Universal power Refillable fuel cell device Cartridge cord ELECTRONIC MICRO FUEL CELL CIRCUIT Produces hydrogen on demand* + Purchased separately Converts the Provides from the fuel cell hydrogen to
Slide 40: From the cartridge to the device prototype
PORTABLE FUEL CELL DEVICE PROJECT 2003 – 2013 From the cartridge to the device prototype 2003 2008 2011 2013 Leverage BIC Partnership with CEA Acquisition of Angstrom Successful integration industrial expertise in Power of Angstrom manufacturing and Development of hydrogen distributing very large fu
Slide 41: BIC Education
BIC EDUCATION An educational solution from children 5 to 10 years combining handwriting and a dedicated educational software 20 brevets en moyenne déposés par an Assemblée Annual Shareholders Générale du Meeting 15 mai- 2013 15 May 2013 41
Slide 42: Social, societal and environmental responsibility
Social , societal and environmental responsability Annual Shareholders Meeting - 15 May 2013
Slide 43: The BIC Sustainable Development Program
THE BIC SUSTAINABLE DEVELOPMENT PROGRAM 2004 : Formalization of the BIC sustainable development program Systematic taking into account and better anticipation of expectations Pilote Follow Coordinate A team of 25 members A barometer sets the Group Sustainable chaired by Mario Group 10 priority Devel
Slide 44: Our Issues
OUR ISSUES 1 2 3 4 PRODUCTS INDUSTRY SOCIAL SOCIETAL (design) (manufacturing and (employees) (communities) transportation) Overcoming the Be a fair and attractive Help communities and disposable/ sustainable Target the excellence of employer brand emerging countries contradiction the environmental p
Slide 45: The Program in 2012
THE PROGRAM IN 2012 1 2 3 4 PRODUCTS INDUSTRY SOCIAL SOCIETAL (design) (manufacturing et (employees) (communities) transportation) To expend the range of The “Quality of life at Strengthening of the responsible products BIC APP certified Quality work" Program Rural Sales Program in in Stationery and
Slide 46: Distribution to Stakeholders in 2012
DISTRIBUTION TO STAKEHOLDERS IN 2012 Employees 493 M€ Communities Suppliers 2 M€ 962 M€ Customers Net sales Net investments 2012 Shareholders 116 M€ 1 899 Bn€ 189 M€ Governments Banks 123 M€ 7 M€ Annual Shareholders Meeting - 15 May 2013 46
Slide 47: Governance
Governance Annual Shareholders Meeting - 15 May 2013
Slide 48: Composition and Organization of the Board of Directors
COMPOSITION AND ORGANIZATION OF THE BOARD OF DIRECTORS BRUNO BICH MARIO GUEVARA FRANÇOIS BICH Chairman Chief Executive Officer Executive Vice-President 1986 2001 1978 EDOUARD BICH MARIE - HENRIETTE MARIE - PAULINE MBD Representative POINSOT CHANDON-MOET 2006 1997 2003 GILLES PELISSON FRÉDÉRIC ROSTAN
Slide 49: Your Council Works in 2012 and early 2013
YOUR COUNCIL WORKS IN 2012 AND EARLY 2013 2012 6 meetings Participation rate: 100% Among the topics discussed • Strategic directions of the Lighters • Strategic directions of the Shavers • Arbitration procedure for Cello • BIC Education Project • Sustainable development program 2013 Development in f
Slide 50: 1973-2013: 40 Years of BIC Share Trading
1973-2013 : 40 YEARS OF BIC SHARE TRADING NET SALES x 23 1973* 2013 82.1 million euros 1.9 billion euros EPS x 40 1973* 2013 0.14 euros 5.56 euros SHARE PRICE** x 23 1973 2013 3.64 euros 84.86 euros *: Net sales and EPS by the end of december 2012 **: adjusted share price and share price at 10-May-2
Slide 51: Honor the past… invent the future
« Honor the past… invent the future People are the cornerstone of our philosophy » Annual Shareholders Meeting - 15 May 2013