Societe BIC SA · EURONEXT:BB
Societe BIC SA — BIC — H1 2017 Earnings Presentation
37 slides from Societe BIC SA's earnings presentation, Aug 3, 2017
Slide 1: H1-Q2 2017 Results Presentation
H1-Q2 2017 Results Presentation 3 August 2017 Second quarter and First Half 2016 and 2017 results are accounted for and presented in accordance with IFRS 5; BIC Graphic is no longer considered as a separate category or reporting segment. BIC Graphic Europe reports to European BIC Consumer Product ma
Slide 2: Group highlights
Group highlights Bruno Bich
Slide 3: Group H1 2017 Key Figures
GROUP H1 2017 KEY FIGURES Net Sales: 1,062.9 million euros +3.0% +3.7% EUROPE +0.1% +0.3% -3.7% NORTH AMERICA As reported Constant comparative DEVELOPING currency basis** +2.3% MARKETS basis* Normalized* Income from Operations: 219,4 million euros 20.7% 20.6% 21.6% H1 2016 NIFO margin H1 2016 NIFO m
Slide 4: Group H1 2017 Key Figures: EPS and Net Cash
GROUP H1 2017 KEY FIGURES EPS (Group share): -6.7% Net Cash Position In euros In million euros 222.2 2.98 2.78 98.2 87.2 H1 2016 H1 2017 June 2016 December 2016 June 2017 4
Slide 5: Category highlights
Category highlights Gonzalve Bich
Slide 6: Stationery Market Evolution
STATIONERY MARKET EVOLUTION % change vs YAG – value USA June 2017 E-commerce 7% Office supply Food & Drug** 8% 26% Brick & Mortar* 59% +15.6% +1.7% +0.9% -2.0% -6.9% E-commerce Food & Drug** Brick & Mortar* Office supply Total Sources: US = NPD/IRI Latest 52 weeks ending June 2017 * Brick & Mortar:
Slide 7: BIC Stationery in H1 2017
BIC STATIONERY IN H1 2017 Net Sales growth on a comparative basis* Normalized* IFO margin H1 2017 Net Sales 18.0% 16.0% 13.6% €428.1M +8.0% +9.1% +5.6% 7.3% 12.7% 11.3% +4.0% +3.3% 5.2% 3.6% H1 2017 NIFO €48.2M -5.1% Q1 Q2 H1 Q1 Q2 H1 2016 excl. 2016 2017 special bonus H1 NET SALES Europe North Amer
Slide 8: BIC Lighters in H1 2017
BIC LIGHTERS IN H1 2017 Net Sales growth on a constant currency basis* Normalized* IFO margin H1 2017 Net Sales 40.0% 39.5% 40.5% 41.7% €356.9M +5.4% +5.4% +5.4% 38.0% 37.4% 39.3% 39.6% +2.0% H1 2017 NIFO +0.8% €141.4M -0.5% Q1 Q2 H1 Q1 Q2 H1 2016 excl. 2016 2017 special bonus H1 NET SALES Europe No
Slide 9: Shaver Market in the U.S.
SHAVER MARKET IN THE U.S. YTD June 2016 YTD December 2016 YTD June 2017 Total -4.3% -4.1% -4.5% -4.0% Refillable -4.5% -5.0% -6.3% One-piece -9.5% -13.0% Source: CMR USA MULO (IRI) – % change in value – YTD June 2016, YTD December 2016, YTD June 2017 9
Slide 10: BIC Shavers in H1 2017
BIC SHAVERS IN H1 2017 Net Sales growth on a constant currency basis* Normalized* IFO margin H1 2017 Net Sales 13.4% 13.8% 14.1% €236.4M +10.9% +9.0% +9.9% 10.7% 12.9%12.6% 12.3%13.3% H1 2017 NIFO -0.9% €31.7M -7.7% Q1 Q2 -4.3% H1 Q1 Q2 H1 2016 excl. 2016 2017 special bonus H1 NET SALES Europe North
Slide 11: H1 2017 – Consolidated Results
H1 2017 – Consolidated Results Jim DiPietro
Slide 12: H1 2017: From Net Sales to Normalized IFO
H1 2017: FROM NET SALES TO NORMALIZED IFO Change on a Change as H1 2016 H1 2017 comparative BIC Group reported In million euros basis* Net Sales 1,031.5 1,062.9 +3.0% +0.3% Gross Profit 529.0 550.2 +4.0% Normalized* IFO 213.6 219.4 +2.7% Income from Operations 209.3 194.9 -6.9% *See glossary 12
Slide 13: Q2 2017 Net Sales Evolution
Q2 2017 NET SALES EVOLUTION In million euros FX translation impact 562.2 +3.6% +2.0% 593.7 +11 M€ BRL: +5 M€ USD: +5 M€ ZAR: +1 M€ RUB UAH: +1 M€ GBP : -1M€ INR : +1M€ Others: -1 M€ Q2 2016 Net Sales Change on a constant currency FX translation impact Q2 2017 Net Sales basis 13
Slide 14: H1 2017 Net Sales Evolution
H1 2017 NET SALES EVOLUTION In million euros FX translation impact 1,031.5 +0.1% +2.9% 1,062.9 +31 M€ BRL: +15 M€ USD: +11 M€ ZAR: +3 M€ RUB UAH: +3 M€ MXN: -2 M€ GBP : -2M€ INR : +2M€ Others: +1 M€ H1 2016 Net Sales Change on a constant currency FX translation impact H1 2017 Net Sales basis 14
Slide 15: Key Components of Q2 2017 Normalized Income from Operations Margin
KEY COMPONENTS OF Q2 2017 NORMALIZED* INCOME FROM OPERATIONS MARGIN 23.5% -0.3 +0.5 -0.4 23.3% • Promotions and investments related to consumer and business development support accounted for in Gross Profit Margin : -0.4 • Advertising, consumer and trade support : +0,9 Q2 2016 Normalized* IFO margin
Slide 16: Key Components of H1 2017 Normalized Income from Operations Margin
KEY COMPONENTS OF H1 2017 NORMALIZED* INCOME FROM OPERATIONS MARGIN 20.7% +0.9 21.6% +0.3 -0.1 -1.2 20.6% • Promotions and • Impact on Gross Profit: +0.5 investments related to • Impact in OPEX : +0.4 consumer and business development support accounted for in Gross Profit Margin : -0.3 • Advertising
Slide 17: H1 2017 From IFO to Group Net Income
H1 2017 FROM IFO TO GROUP NET INCOME In million euros H1 2016 H1 2017 IFO 209.3 194.9 Finance revenue/costs -0.8 0.0 Income before Tax 208.5 194.9 Income tax -62.6 -58.5 Effective tax rate 30.0% 30.0% Net Income From Continuing Operations 145.9 136.3 Net Income From Discontinued -5.8 -6.7 Operations
Slide 18: Balance Sheet
BALANCE SHEET BIC Group December June In million euros 2016 2017 222.9 Total Working Capital 642.2 733.0 Stationery* 226.3 121.2 Of which inventories 468.1 469.6 Lighters 114.5 Jun-17 Of which Trade 107.4 Jun-16 483.1 614.9 Shavers 98.6 and other receivables 18.1 Of which Trade 118.7 136.8 Other Pro
Slide 19: Net Cash Position
NET CASH POSITION In million euros Operations +198.1 -121.1 -74.7 222.2 -161.0 Net Cash From 55.7 -14.6 87.2 Operating activities -17.4 +77.0 M€ December 2016 Net Operating cash flow Change in working CAPEX Dividend payment Share buyback, Proceeds from sale of Others June 2017 Net Cash Cash Position
Slide 20: Full year 2017 outlook
Full year 2017 outlook Bruno Bich
Slide 21: Group H1 2017 Summary
GROUP H1 2017 SUMMARY Good net sales momentum in second quarter • Stationery: successful early back-to-school sell-in in Europe and in North America Net sales • Lighter: good performance in Europe and rebound sell-in in the U.S • Shaver: solid performance in Europe and in Developing Markets, decline
Slide 22: 2017 Group Outlook
2017 GROUP OUTLOOK As markets remain volatile for the balance of the year, coupled with recent signs of lower consumption in Brazil, we now expect to trend between 3% to 4% Full Year Organic Net Sales growth. While we continue to invest for the long term, we are adjusting our 2017 Brand support due
Slide 23: Appendix
Appendix
Slide 24: Q2 and H1 2017 Net Sales: Exchange Rate Evolution
Q2 AND H1 2017 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average Average Average Average rate rate rate rate % of sales Q2 2016 Q2 2017 % of change % of sales H1 2016 H1 2017 % of change US Dollar 39% 1.13 1.10 2.3% US Dollar 38% 1.12 1.08 3.0% Brazilian Real 7% 3.95 3.55 11.2% Brazilian Real
Slide 25: H1 2017 Net Sales Breakdown by Category
H1 2017 NET SALES BREAKDOWN BY CATEGORY OTHER PRODUCTS 4% STATIONERY 40% SHAVERS 22% 34% LIGHTERS 25
Slide 26: H1 2017 Net Sales Breakdown by Geography
H1 2017 NET SALES BREAKDOWN BY GEOGRAPHY 32% 29% DEVELOPING MARKETS EUROPE 39% NORTH AMERICA 26
Slide 27: Group Quarterly Figures
GROUP QUARTERLY FIGURES Including BIC Graphic North America and Asia sourcing Excluding BIC Graphic North America and Asia sourcing In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 H1 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 H1 17 Net Sales 510.8 623.2 548.3 559.4 2,241.7 469.3 562.2 1,031.5 490.5
Slide 28: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY In million euros Q1 16 Q2 16 H1 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 H1 17 Europe 126.6 170.0 296.5 131.4 116.8 544.8 129.5 177.5 307.1 Net Sales YoY actual changes +7.6% +6.3% +6.9% +0.0% -1.7% +3.2% +2.3% +4.4% +3.5% YoY changes on a comparative basis* +9.2% +8.6%
Slide 29: Stationery
STATIONERY Including BIC Graphic Europe and Developing markets In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 H1 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 H1 17 Net Sales 157.1 233.2 184.3 152.4 727.0 167.1 241.1 408.2 193.9 178.2 780.3 163.4 264.7 428.1 YoY actual changes +9.1% +10.0% +8.9% +0.5
Slide 30: Lighters
LIGHTERS In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 H1 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 H1 17 Net Sales 163.5 178.4 158.8 175.0 675.7 163.6 177.2 340.8 167.6 187.9 696.4 171.3 185.5 356.9 YoY actual changes +22.3% +22.4% +10.6% +10.3% +16.2% +0.1% -0.7% -0.3% +5.6% +7.4% +3.1% +4.7%
Slide 31: Shavers
SHAVERS In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 H1 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 H1 17 Net Sales 112.4 117.8 113.0 108.8 452.0 117.8 120.1 237.9 111.8 117.3 467.0 114.4 122.0 236.4 YoY actual changes +26.5% +20.0% +15.4% +14.5% +18.9% +4.8% +2.0% +3.3% -1.1% +7.8% +3.3% -2.9% +
Slide 32: Other Products
OTHER PRODUCTS Including BIC Graphic Europe and Developing markets In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 H1 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 H1 17 Net Sales 16.8 22.3 13.9 14.6 67.6 20.8 23.8 44.6 17.2 20.3 82.1 20.1 21.4 41.5 YoY actual changes +4.1% +16.8% -8.9% +0.2% +3.9% -1
Slide 33: Miscellaneous
MISCELLANEOUS Capital evolution: As of June 30, 2017, the total number of issued shares of SOCIÉTÉ BIC was 47,582,472 shares, representing: • 69,159,383 voting rights, • 68,210,891 voting rights excluding shares without voting rights. Total treasury shares at the end of June 2017: 948,492. 33
Slide 34: Glossary - Miscellaneous
GLOSSARY - MISCELLANEOUS Second quarter and First Half 2016 and 2017 results are accounted for and presented in accordance with IFRS 5; BIC Graphic is no longer considered as a separate category or reporting segment. BIC Graphic Europe reports to European BIC Consumer Product management. In Developi
Slide 35: 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 Factors” of BIC “Registration Doc
Slide 36: 2017-2018 Agenda
2017-2018 AGENDA Third Quarter 2017 results 25 October 2017 Conference call Full Year 2017 results 14 February 2018 Meeting – BIC Headquarters First Quarter 2017 results 25 April 2018 Conference call 2018 AGM 16 May 2018 Meeting – BIC Headquarters All dates to be confirmed 36
Slide 37: Slide 37