Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — Q3 2022 Earnings Presentation
32 slides from Societe Bic Sa's earnings presentation, Oct 28, 2022
Slide 1: BIC Q3 & 9M 2022 Results Presentation
BIC Q3 & 9M 2022 RESULTS PRESENTATION October 28, 2022 1
Slide 2: 9M 2022 Key Financial Figures
9M 2022 KEY FINANCIAL FIGURES , NET SALES ADJUSTED EBIT ADJUSTED EPS FREE CASH FLOW* 1,707.2 M€ 268.5M€ 4.53€ 150.7M€ Change at Constant Change at actual aEBIT aEBIT Margin Margin Net Cash Position Currencies +15.3% currencies 15.7% 347.0M€ +13.8% +19.2% Change on a Comparative basis +11.6% *Free Ca
Slide 3: Strong Momentum in All Divisions
STRONG MOMENTUM IN ALL DIVISIONS Human Expression Flame For Life Blade Excellence Market share gains in all key regions Robust Back-to-School sell- + 13% growth for (USA, Europe and Latin America) out in Europe, North Decorated Lighters, America and Mexico – EZ Reach, and Djeep Products contribution
Slide 4: Horizon Strategic Plan in Action
HORIZON STRATEGIC PLAN IN ACTION Progress in all Horizon’s Growth Drivers Revenue Growth Innovation E-commerce Sustainability Management Over 5% market share* +10% in +25% average Sales BIC Ecolutions Pocket for EZ Reach E-commerce sales Growth per SKU Lighter designed with lighter 16% lower environ
Slide 5: 9M 2022 Category Snapshot
9M 2022 CATEGORY SNAPSHOT HUMAN EXPRESSION FLAME FOR LIFE BLADE EXCELLENCE 663.2 M€ Net Sales 652.0 M€ Net Sales 372.9 M€ Net Sales + 18.4% at CC* +10.8% at CC* +12.8% at CC* 34.3M€ aEBIT 241.6M€ aEBIT 56.6M€ aEBIT 5.2% margin 37.1% margin 15.2% margin Robust Back-to-School season in the Double-digi
Slide 6: Q3 2022 Net Sales Evolution
Q3 2022 NET SALES EVOLUTION In million euros +11.4 pts +1.3 pts +1.0 pts 580.1 +7.6 pts 5.8 5.8 54.1 478.4 36.0 +21.3% as reported Q3 2021 Net Sales Change on a comparative FX impact Perimeter impact Argentina Q3 2022 Net Sales as reported basis as reported 6
Slide 7: 9M 2022 Net Sales Evolution
9M 2022 NET SALES EVOLUTION In million euros +9.0 pts +1.1 pts +0.7 pts 1 707.2 +11.6 pts 124.4 13.8 13.9 1 395.1 160.0 +22.4% as reported 9M 2021 Net Sales Change on a comparative FX impact Perimeter impact Argentina 9M 2022 Net Sales as reported basis as reported 7
Slide 8: Q3 2022 - Key Components of Change in Adjusted EBIT
Q3 2022 - KEY COMPONENTS OF CHANGE IN ADJUSTED EBIT (including the impact of Net Sales Operating leverage) 17.2% 3.3% 3.8% 0.5% 0.6% 11.3% Of which: 3.4% Price: +2.4 pts 0.9% Raw Materials: -4.4 pts Air & Sea Freight: -1.0 pts Absorption: +2.3pts FX: -2.3 pts Q3 2021 Adjusted Change in GP Operating
Slide 9: 9M 2022 - Key Components of Change in Adjusted EBIT
9M 2022 - KEY COMPONENTS OF CHANGE IN ADJUSTED EBIT (including the impact of Net Sales Operating leverage) 4.2% 17.8% 0.9% 0.1% 1.6% 15.7% 2.8% 0.9% Of which: Price: +1.7 pts Raw Materials: -3.2 pts Air & Sea Freight: -1.5 pts Absorption: +2.1 pts FX: -1.1 pts 9M 2021 Adjusted Change in GP Operating
Slide 10: Input Cost Inflation
INPUT COST INFLATION* Impact on Gross Profit in 9M 2022 FY 21 / FY 20 Q1 22 / Q1 21 Q2 22 / Q2 21 Q3 22 / Q3 21 9M 22 / 9M 21 Raw Materials - 8 M€ - 6 M€ - 18 M€ - 21 M€ -45 M€ Sea & Air Freight Import - 14 M€ - 7 M€ - 11 M€ - 5 M€ - 23 M€ Costs Electricity Costs - 6 M€ - 5 M€ - 11 M€ Total - 22 M€
Slide 11: 9M 2022 From Adjusted EBIT to Net Income
9M 2022 FROM ADJUSTED EBIT TO NET INCOME in million euros Q3 2021 Q3 2022 9M 2021 9M 2022 9M 2022 non-recurring items included: Adjusted EBIT* 82.5 65.6 248.6 268.5 - (3.6) million euros of acquisition costs related to Inkbox, Tattly and AMI as well Non- recurring items** - 1.3 (166.5) 6.6 as Djeep
Slide 12: Working Capital
WORKING CAPITAL In million euros 644.3 28.4 69.1 33.6 RECEIVABLES IN DAYS* 1.2 495.4 77 73 56.6 72 488.3 93.5 Sep-21 Dec-21 Sep-22 Of which 38 million euros related to input cost inflation INVENTORIES IN DAYS** Operating activities: -88.1 M€ 199 200 178 Sep-21 Dec-21 Sep-22 sept-21 Dec-21 Net Invent
Slide 13: 9M 2022 Net Cash Position
9M 2022 NET CASH POSITION In million euros 149.7 357.8 57.4 1.1 73.3 400.1 94.7 4.9 347.0 Net Cash From Operating 41.8 activities +208.1M€ December 2021 Operating cash Change in working CAPEX Proceeds from Acquisitions Dividend Share buyback net Others (mainly FX) September 2022 Net Cash Position fl
Slide 14: 2022 Outlook
2022 OUTLOOK Given the third quarter strong top line performance, Full Year 2022 Net Sales are now expected to grow between +11% and +13% at constant currencies (previously 10% to 12%), including 1 to 2 points growth from acquisitions. Q4 Net Sales growth will be driven by both volumes and prices. W
Slide 15: Thank You
THANK YOU 15
Slide 16: Appendix
APPENDIX 16
Slide 17: 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 decrease decrease increase Low to mid-single-digit Low to mid-single digit NORTH AMERICA Slight decrease decrease decrease Low to mid-single-digit Low to mid
Slide 18: 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, Tattly, AMI (Price and Promotions) Net Sales Gross Profit Adjusted EBIT Increase in volume Price increases Increase in Brand Support to su
Slide 19: 9M 2022 Net Sales Breakdown
9M 2022 NET SALES BREAKDOWN BY CATEGORY BY GEOGRAPHY North America Other products Blade 43% 1% Human Excellence Europe 22% Expression 30% 39% Asia & Oceania (Including India) Latin America Middle East Flame for Life 5% & Africa 17% 38% 5% 19
Slide 20: Sensitivity to Net Sales and IBT of USD-EUR Fluctuation
SENSITIVITY TO NET SALES AND IBT* OF USD-EUR FLUCTUATION Sensitivity to net sales and income before 9M 2021 9M 2022 tax (IBT) of USD-EUR fluctuation +/- 5% change in USD impact on Net Sales 2.1% 2.1% +/- 5% change in USD impact on IBT 0.9% 1.2% * IBT Income before tax 20
Slide 21: 9M 2022 Foreign Currencies Impact on Net Sales
9M 2022 FOREIGN CURRENCIES IMPACT ON NET SALES 5.8 Total impact: +9.0 pts 1.3 0.7 0.6 0.3 0.3 BRL USD MXN RUB/UAH CAD OTHERS 21
Slide 22: Main Exchange Rate Evolution vs. Euro
9M 2022 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average rates % of sales 9M 2021 9M 2022 % of change US Dollar 42% 1.20 1.06 +12.6% Brazilian Real 7% 6.37 5.45 +16.9% Mexican Peso 5% 24.09 21.54 +11.8% Argentina Peso 2% 111.91 127.39 -12.1% Canadian dollar 3% 1.50 1.36 +9.6% Australian dolla
Slide 23: Group Quarterly Figures
GROUP QUARTERLY FIGURES In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Net Sales 357.0 418.9 441.9 410.1 1,627.9 411.0 505.7 478.4 436.8 1,831.9 515.7 611.4 580.1 YoY actual changes (14.1)% (23.1)% (9.4)% (18.2)% (16.5)% +15.1% +20.7% +8.2% +6.5% +12.5
Slide 24: 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 Q1 22 Q2 22 Q3 22 Europe Net Sales 119.1 138.6 147.2 112.3 517.3 125.2 166.8 155.4 123.1 570.6 146.5 190.4 173.6 YoY actual changes (3.0)% (17.4)% +2.6% (9.9)% (7.5)% +5.2% +20.3% +5.6%
Slide 25: Human Expression
HUMAN EXPRESSION In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Net Sales 126.9 166.9 161.3 120.5 575.6 131.1 202.2 197.5 153.1 683.8 168.3 269.7 225.2 YoY actual changes (14.4)% (33.9)% (21.1)% (28.8)% (25.7)% +3.3% +21.2% +22.4% +27.0% +18.8% +28.4%
Slide 26: Flame for Life
FLAME FOR LIFE In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Net Sales 121.0 147.3 171.1 178.7 618.1 174.5 192.9 170.7 180.4 718.5 226.4 209.7 216.0 YoY actual changes (19.2)% (13.3)% +5.7% (9.5)% (9.0)% +44.2% +31.0% (0.2)% +0.9% +16.2% +29.7% +8.7%
Slide 27: Blade Excellence
BLADE EXCELLENCE In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Net Sales 102.0 98.6 102.9 100.6 404.2 96.4 104.0 104.6 96.2 401.2 113.5 126.8 132.6 YoY actual changes (6.4)% (14.6)% (10.4)% (18.5)% (12.7)% (5.5)% +5.4% +1.6% (4.4)% (0.7)% +17.7% +22.0
Slide 28: Other Products
OTHER PRODUCTS In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Net Sales 7.0 6.1 6.6 10.3 30.0 9.0 6.6 5.7 7.1 28.4 7.6 5.2 6.3 YoY actual changes (15.7)% (12.3)% (3.8)% (6.3)% (9.4)% +29.4% +8.7% (14.9)% (31.1)% (5.3)% (16.5)% (21.1)% +11.5% YoY change
Slide 29: Unallocated Costs
UNALLOCATED COSTS In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 EBIT (18.8) (20.1) (14.5) (30.5) (84.0) 146.8 (16.5) (16.3) (22.4) 91.6 (20.3) (18.8) (21.1) Adjusted EBIT (17.0) (17.2) (13.2) (21.0) (68.4) (20.0) (16.5) (16.3) (26.2) (79.1) (20.3) (18
Slide 30: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of 30 September 2022, the total number of issued shares of SOCIÉTÉ BIC is 44,677,929 shares, representing: • 65,713,727 voting rights • 64,762,104 voting rights excluding shares without voting rights Total number of treasury shares held at the end of September 2022: 951,
Slide 31: 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 32: 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 2021 Universal