Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — Q1 2021 Earnings Presentation
31 slides from Societe Bic Sa's earnings presentation, Apr 27, 2021
Slide 1: First Quarter 2021 Results
FIRST QUARTER 2021 RESULTS April 27, 2021 1
Slide 2: Q1 2021 Key Takeaways
Q1 2021 KEY TAKEAWAYS Robust results driven by the exceptional growth in U.S Lighters Challenging underlying market trends in core Writing Instruments, worsened by the pandemic in developing countries Solid performance of Rocketbook in Digital Writing Continued growth in e-commerce, driven by all ch
Slide 3: Q1 2021 Key Financial Figures
Q1 2021 KEY FINANCIAL FIGURES € NET SALES ADJUSTED EBIT ADJUSTED EPS FREE CASH NET CASH FLOW* POSITION 411.0 M€ 60.5 M€ 0.96€ 36.0 M€ 393.6M€ +60.0% End of March 2021 Change at constant currency Adj. EBIT Margin +25.6% 14.7% Change on a comparative basis +20.9% *Before acquisitions and disposals 3
Slide 4: Human Expression
HUMAN Stationery Market Evolution E-commerce Market Evolution EXPRESSION Total Market (value) BIC share (pts) In million euros Q1 2020 Q1 2021 France (3) +0.8% -0.6 Net Sales 126.9 131.1 France 42% -0.8 22% % change on a -14.8% +1.3% UK (3) +0.5% comparative basis % change at constant -12.9% +11.2%
Slide 5: Flame for Life
FLAME FOR LIFE U.S. Lighter Market Evolution (1) % share of Utility Lighters sales Market BIC share (value) (pts) Total Group United States In million euros Q1 2020 Q1 2021 11% 14% Net Sales 121.0 174.5 Total +11.1% +0.8 9% % change on a -18.7% +54.2% comparative basis 12% % change at Pocket +8.5% +
Slide 6: Q1 U.S Lighters' Sell-in Performance
Q1 U.S LIGHTERS' SELL-IN PERFORMANCE BIC ESTIMATES – INDEX (% GROWTH) 178 7 (est.) 8 (est.) Including prebuy 12 (est.) Including positive ahead of Q2 impact of June planned price 31 (est.) Including EZ 2020 price increase Reach Pocket increase Utility Lighter 20 (est.) US Pocket Lighters Market and
Slide 7: Blade Excellence
BLADE EXCELLENCE Shaver Market Evolution E-commerce Shaver Market Evolution in the U.S Market BIC share In million euros Q1 2020 Q1 2021 (value) (pts) Net Sales 102.0 96.4 France (1) -14.8% -4.6 BIC share gain: +2.2 points % change on a -5.9% +4.5% comparative basis UK (1) -20.6% -0.8 % change at 69
Slide 8: Q1 2021 Net Sales Evolution (as reported)
Q1 2021 NET SALES EVOLUTION (as reported) +15.1% +20.9% -9.5% +4.0% -0.3% 411.0 357.0 - 33.7 14.7 0.0 73.0 FX impact -33.7 M€ In M€ BRL -9.5 USD -16.2 MXN -2.0 RUB UAH -2.0 CAD -0.4 ZAR -0.3 INR -0.8 Other -2.5 Q1 2020 Net Sales Change on a comparative FX impact Perimeter impact Argentina Q1 2021 Ne
Slide 9: Q1 2021 Profit and Loss Account
Q1 2021 PROFIT AND LOSS ACCOUNT In million euros Q1 2020 Q1 2021 Net Sales 357.0 411.0 Gross Profit 182.4 212.1 EBITDA 47.8 250.9 Adjusted EBIT* 25.3 60.5 Sale of Clichy Headquarters: 167.7 M€ Non-recurring items 2.3 -166.8 Pimaco divestiture: 3.0 M€ Restructuring costs: 3.9 M€ EBIT 23.0 227.3 Finan
Slide 10: Q1 2021 Key Components of Change in EBIT and Adjusted EBIT
Q1 2021 KEY COMPONENTS OF CHANGE IN EBIT AND ADJUSTED EBIT 6.4% 7.1% 14.7% 55.3% EBIT MARGIN aEBIT MARGIN aEBIT MARGIN EBIT MARGIN +40.6pts +5.9 pts +1.2 pts +0.5 pts +0.7 pts Increase in Net Increase in Net Sales: Sales: + 8.2 pts Price & Mix: + 2.7 pts + 1.1 pts Raw Materials: - 0.1 pts FX: - 2.8
Slide 11: Raw Materials
RAW MATERIALS GAS PLASTICS METALS Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Natural Gas Isobutane Propylene EU Styrene EU Methanol*
Slide 12: Capex – Depreciation & Amortization
CAPEX – DEPRECIATION & AMORTIZATION 250 0.8 200 Other Stationery 19% 17% 150 2021 Q1 CAPEX: 15.9 M€ 99 0.7 100 83 0.6 Shavers Lighters 28% 36% 50 24.6 23.5 15.9 15.9 0 FY 2020 Q1 2020 Q1 2021 CAPEX Depreciation & Amortization CAPEX to D&A Ratio 12
Slide 13: Working Capital
WORKING CAPITAL Inventories by category: Other Products 2% Shavers 20% BIC In million euros December 2020 March 2021 Total Working Capital 458.0 497.2 Stationery Of which inventories 379.0 421.5 50% Of which Trade and other receivables 409.6 445.0 Of which Trade Lighters and other payables (99.5) (1
Slide 14: 31 March 2021 Net Cash Position
31 MARCH 2021 NET CASH POSITION In million euros Operations Net Cash 177.3 -4.2 -2.7 3.3 From Operating activities +51.9M€ 91.1 -39.2 -15.9 393.6 183.9 December 2020 Operating cash flow Change in working CAPEX Proceeds from HQ Acquisitions Net cash from Others (mainly FX) March 2021 Net Net Cash Pos
Slide 15: Revised 2021 Market Assumptions
REVISED 2021 MARKET ASSUMPTIONS* LIGHTERS STATIONERY SHAVERS (pocket) EUROPE Flat (vs flat to slight Flat to slight increase increase) Low to mid-single digit Flat to low single-digit Low to mid-single NORTH AMERICA increase increase (vs flat) digit decrease Low to mid-single digit LATIN AMERICA dec
Slide 16: 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 of vol
Slide 17: 2021 Outlook
2021 OUTLOOK1 Despite a better-than-expected start of the year and an exceptional performance in Lighters, our Full-Year Net Sales outlook remains unchanged, although we now expect to be at the high end of our +5% to +7% growth objective at constant currencies. . The trading environment remains vola
Slide 18: Thank You
THANK YOU 18
Slide 19: Appendix
APPENDIX 19
Slide 20: Q1 2021 Net Sales Breakdown
Q1 2021 NET SALES BREAKDOWN BY GEOGRAPHY BY CATEGORY Other products 2% North America 45% Shavers Stationery Europe 23% 32% 31% Asia & Oceania (Including India) Latin America Lighters 5% Middle East 14% & Africa 43% 5% 20
Slide 21: Main Exchange Rate Evolution vs. Euro
Q1 2021 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average rates % of sales Q1 2020 Q1 2021 % of change US Dollar 43% 1.10 1.20 -8.37% Brazilian Real 25% 4.90 6.61 -25.83% Mexican Peso 5% 22.00 24.54 -10.37% Argentina Peso 10% 67.78 107.01 -36.66% Canadian dollar 1% 1.48 1.52 -2.79% Australian
Slide 22: Group Quarterly Figures
GROUP QUARTERLY FIGURES Restated for Restated for Unallocated Group Costs IAS 29 In million euros Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Net Sales 415.4 543.9 479.5 511.0 1 949.8 415.4 544.8 488.0 501.2 1 949.4 357.0 418.9 441.9 410.1 1 627.9
Slide 23: 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 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 YoY actual changes -1.2% -4.6% +4.0% +2.7% -0.1% -3.0% -17.4% +2.6% -9.9% -7.5% +5.2% YoY changes
Slide 24: 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 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 YoY actual changes -2.3% +1
Slide 25: 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 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 YoY actual changes -2.0% +3.0% -1.1
Slide 26: 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 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 YoY actual changes +12.4% +1.8% +10
Slide 27: 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 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 YoY actual changes -40.0% -56.3% -37.8% -16.9% -38.7% -40.0%
Slide 28: 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 EBIT -12.6 -37.6 -14.9 -21.5 -86.7 -18.8 -20.1 -14.5 -30.5 -84.0 146.8 Adjusted EBIT -12.6 -10.6 -10.0 -15.9 -49.1 -17.0 -17.2 -13.2 -21.0 -68.4 -20.0 (*) See glo
Slide 29: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of March 31, 2021, the total number of issued shares of SOCIÉTÉ BIC is 45,395,857 shares, representing: • 66,790,746 voting rights • 66,395,723 voting rights excluding shares without voting rights Total number of treasury shares held at the end of March 2021: 395,023. 29
Slide 30: 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 31: 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