Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — Corporate Update (September 2016)
55 slides from Societe Bic Sa's corporate update, Sep 27, 2016
Slide 1: Marne-La-Vallée factory and BIC Technologies visits
Marne-La-Vallée factory and BIC Technologies visits 27 SEPTEMBER 2016
Slide 2: Introduction
INTRODUCTION
Slide 3: BIC Stationery - History
BIC STATIONERY - HISTORY 1944 Marcel Bich buys a factory in Clichy, France, and sets up business with his partner, Édouard Buffard, as a maker of writing instruments parts 1950 Launch of the ballpoint pen (“pointe BIC®”) on the French market 1953 Creation of SOCIÉTÉ BIC to manufacture and distribute
Slide 4: BIC Stationery Manufacturing Footprint
BIC STATIONERY MANUFACTURING FOOTPRINT France (Samer, Marne-La-Vallée, Cernay) Ball pens, pencils, coloring pencils, leads, dyes Mexico United States Ball pens, mechanical pencils, Markers Tunisia correction tapes India (Daman and Haridwar) Ball pens Writing instruments Brazil (Manaus and Rio de Jan
Slide 5: Innovation in a Nutshell
INNOVATION IN A NUTSHELL 2004 2014 Easy glide ink 4 colors Stylus 2006 Cushion point 2014 Atlantis Ultra comfort with 2012 Extra soft grip Stylus 2 in 1 2013 2015 Cristal® Stylus BIC Kids (learning range) -5- 5
Slide 6: BIC Stationery Category Today
BIC STATIONERY CATEGORY TODAY 727.0 million euros net sales in 2015 18.5 11.5% million BIC® Stationery Normalized IFO products purchased every margin in 2015 day1 worldwide 14 9.2% value factories market share2 n°1 in Europe, Africa, n°2 in North Latin America, India America, Oceania 1 Base 365 days
Slide 7: Stationery Category Review
STATIONERY CATEGORY REVIEW
Slide 8: A Growing Stationery Market
A GROWING STATIONERY MARKET CAGR 2010-2015* +3.6% in value +1.5% in volume 78.00 10.00 76.00 9.50 8.6 9.00 74.00 8.1 8.50 72.00 7.8 8.00 7.6 70.00 7.3 7.50 6.9 68.00 7.00 66.00 6.50 2010 2011 2012 2013 2014 2015 In volume (in billion units) In value (in billion euros) *BIC Estimate & Published Resea
Slide 9: BIC Positions in Major Market Segments
BIC POSITIONS IN MAJOR MARKET SEGMENTS* N° 2 worldwide cc. 9.2% market share N°1 in Ball Pen N°1 in Mechanical N°2 in marking N°1 in correction (22% market share) Pencils (5% market share) (19% market share) (13% market share) * BIC Estimates – 2015 9
Slide 10: Strong International Positions
STRONG INTERNATIONAL POSITIONS* EUROPE NORTH AMERICA N°1 INDIA N°2 N°1 MIDDLE-EAST / AFRICA N°1 LATIN AMERICA OCEANIA N°1 N°2 * BIC Estimates – 2015 10
Slide 11: Engagement for Safety and Quality
ENGAGEMENT FOR SAFETY AND QUALITY • 92% of BIC stationery products are produced in BIC onwed fatories • A team dedicated to Safety and Quality with more than 70 managers and engineers around the world, in order to guarantee the quality of our products every day • All Stationery products are controll
Slide 12: 2016 - A Year of Investments
2016 - A YEAR OF INVESTMENTS CAPEX BRAND SUPPORT R&D • Accompany New Product • Product quality and launches performance • Reinforce positions in • New added-value products developing markets FRANCE • Improve in-store visibility Additional capacities in Samer and Marne-La-Vallée • Strengthen Brand CE
Slide 13: Marne-La-Vallee Factory
MARNE-LA-VALLEE FACTORY
Slide 14: Welcome!
BIC ECRITURE 2000 – MARNE LA VALLEE WELCOME! 14
Slide 15: Agenda
BIC ECRITURE 2000 – MARNE LA VALLEE Agenda BIC MLV factory: Key Figures What are the pens we produce at MLV ? What are the key stages to produce a pen ? 15
Slide 16: A strong dedication to Quality: quality controls for a BIC Cristal
BIC ECRITURE 2000 – MARNE LA VALLEE A strong dedication to Quality: 70 Quality controls for a BIC Cristal In-depth checking tests on points 16
Slide 17: An obsession for Safety
BIC ECRITURE 2000 – MARNE LA VALLEE An obsession for Safety Since the 1st Cristal pen, BIC has produced and sold more than 140 Billion pens. All of our products respect all of the international norms and standards edited by Scientists and Governments. All of our products are controlled internally in
Slide 18: A strong focus on Sustainability: ISO 9001 & ISO 14001
BIC ECRITURE 2000 – MARNE LA VALLEE A strong focus on Sustainability ISO 9001 & ISO 14001 18
Slide 19: Electricity Consumption Reduction
BIC ECRITURE 2000 – MARNE LA VALLEE A strong focus on Sustainability Electricity Consumption Reduction In 2010: 32.7 kWh/thousand pens In 2016: 23.5 kWh/thousand pens (-28%) 19
Slide 20: Sustainability: Light Barrel
BIC ECRITURE 2000 – MARNE LA VALLEE A strong focus on Sustainability LIGHT BARREL 4.4 g 3.7 g 3.4 g 3.1 g 1950-1980 1980-1990 1990-2010 2010- Today 20
Slide 21: Impressive production center
BIC ECRITURE 2000 – MARNE LA VALLEE Impressive production center… Ground area: 60,000m² (15 acres) Factory area: 28,000 m² (7 acres), equivalent to 4 soccer fields 21
Slide 22: MLV production per day
BIC ECRITURE 2000 – MARNE LA VALLEE MLV production per day 16 Million Pellets / day 7 Million Balls / day 7 Million Points / day 2.5 Tons of inks / day 3.5 Million cartridges / day 3 Million pens / day 22
Slide 23: A sophisticated manufacturing process
BIC ECRITURE 2000 – MARNE LA VALLEE An advanced technology developped internally A sophisticated manufacturing process 23
Slide 24: Key products produced at MLV
BIC ECRITURE 2000 – MARNE LA VALLEE Key products produced at MLV Cristal Medium Cristal Grip Orange Cristal Fine 0.8mm Cristal Soft 1.2mm M10 4 colors 24
Slide 25: BIC Cristal 1006
BIC ECRITURE 2000 – MARNE LA VALLEE BIC® Cristal 1006 Refillable Cartridge Support (Polypropylene) Cap Barrel Button (Polypropylene) (Polystyrene GPPS) (Polystyrene HIPS) Welded button and non welded cartridge 25
Slide 26: BIC Cristal Grip
BIC ECRITURE 2000 – MARNE LA VALLEE BIC® Cristal Grip Refillable Cartridge Support (Polypropylene) Cap (styrene- Grip Barrel Bouchon Butadiene) (Polystyrene GPPS) (Polystyrene Grip HIPS) Welded button and non welded cartridge 26
Slide 27: BIC Orange
BIC ECRITURE 2000 – MARNE LA VALLEE BIC® Orange Cartridge Cap Barrel Button 27
Slide 28: BIC Cristal fine 0.8
BIC ECRITURE 2000 – MARNE LA VALLEE BIC® Cristal fine 0.8 Cartridge Cap Barrel Button 28
Slide 29: BIC Cristal M10
BIC ECRITURE 2000 – MARNE LA VALLEE BIC® Cristal M10 Cartridge Spring Inners Welded barrel and section (Polypropylene) Section Barrel Pusher (Polystyrene GPPS) (Polystyrene HIPS) (Methyl Polymetacrylate) 29
Slide 30: BIC 4 Colors
BIC ECRITURE 2000 – MARNE LA VALLEE BIC® 4 Colors Spring Cartridge Cap Connector Barrel Pushers 30
Slide 31: Stages to Manufacture a Pen
BIC ECRITURE 2000 – MARNE LA VALLEE Stages to Manufacture a Pen The plant consists of 3 sectors corresponding to 3 different technologies Point: Metallurgy Ink: Chemistry Plastic Processing & Pen Assembly 31
Slide 32: The Ball Processing Stages: Pellet
BIC ECRITURE 2000 – MARNE LA VALLEE The Ball Processing Stages 1. The « pellet » (blank) manufacturing The Pellet is made by compressing a powder of tungsten carbide. Then the steps are as follow: Pre-Sintering Drumming Sintering 32
Slide 33: The Ball Processing Stages: Ball Grinding
BIC ECRITURE 2000 – MARNE LA VALLEE The Ball Processing Stages 2. The Ball Grinding Ball Here, the pellets are becoming balls of perfectly spherical shape. Rotary Lapping Machine To obtain the balls, we grind the pieces between two heavy plates (one is fixed, the other one rotates) with an adequate
Slide 34: The Point
BIC ECRITURE 2000 – MARNE LA VALLEE The Point Blank Short Point Slug Long Point 34
Slide 35: Chemistry: The Ink Workshop
BIC ECRITURE 2000 – MARNE LA VALLEE Chemistry: The Ink Workshop Development & Qualification of inks manufactured in BE 2000 Production: 2.5 Tons of inks per day. 35
Slide 36: The Molding Workshop
BIC ECRITURE 2000 – MARNE LA VALLEE The Molding Workshop 46 injection machines 3,000,000 units of each component are produced in a daily basis. 36
Slide 37: The Cartridge Assembly Workshop
BIC ECRITURE 2000 – MARNE LA VALLEE The Cartridge Assembly Workshop 3.5 Million cartridges / day 37
Slide 38: The Ink System
BIC ECRITURE 2000 – MARNE LA VALLEE The Ink System 38
Slide 39: The Pen Assembly Workshop
BIC ECRITURE 2000 – MARNE LA VALLEE The Pen Assembly Workshop 3 Million pens / day 39
Slide 40: The plant tour in 3'24''
BIC ECRITURE 2000 – MARNE LA VALLEE The plant tour in 3’24’’ Youtube link 40
Slide 41: We hope that you enjoy the tour of the factory
BIC ECRITURE 2000 – MARNE LA VALLEE We hope that you enjoy the tour of the factory Slippery floors Safety shoe shells to be worn No pictures 41
Slide 42: BIC Technologies
BIC TECHNOLOGIES
Slide 43: Vertical Integrated Process
VERTICAL INTEGRATED PROCESS 43
Slide 44: Activity: Molds & Machines
ACTIVITY : MOLDS & MACHINES Mold development from engineering to production start-up and support (up to 3,000 kg each) Machines development from engineering to production start-up and support (up to 10 assembled components) 44
Slide 45: Technical Excellence
TECHNICAL EXCELLENCE Moulds & machines as a competitive advantage Best quality @ best cost Innovation => performance => process => new technologies Technical support for all factories in real time Strong technical skills in precision mechanical machining (1 µm precision). Advanced industrial tools H
Slide 46: Structure: Worldwide competition
STRUCTURE BIC Tech. challenged with Worldwide competition to : Provide more efficient results at same cost Provide same results at lower cost We provide flexible offer inc. added value 46
Slide 47: Technical Flexible Offer
TECHNICAL FLEXIBLE OFFER Adjusted capacity and cost depending of project (size and sustainability) Technical support : « Only result count ! » We are responsible for molding AND assembly Full parts assembly tests before machine shipment People technical training Technical support for local start-up
Slide 48: Standardization
STANDARDIZATION WW DATABASE STANDARDISATION COST SPARE PARTS REFURBISHMENT QUALITY Standardisation Worlwide exchangeable molds 1 machines Worldwide exchangeable spare parts Limited type of mould & machines frames Limited type of components Time to market Cost optimization Quality control 48
Slide 49: Added Value
ADDED VALUE Global expertise in molds and machines development Best synergy during engineering/debugging High precision machining and adjustment Long wall plastic part injection know how Flexible offer adjusted to market needs Innovation Cycle time optimization Part weight optimization 49
Slide 50: Appendix
APPENDIX
Slide 51: BIC Product Retail Price Positioning
BIC® PRODUCT RETAIL PRICE POSITIONNING Ball pen Retail prices in France In euros 4.45 € 2.53 € 2.24 € 1.98 € 1.63 € 1.46 € 0.73 € 0.32 € 0.36 € 0.41 € Cristal medium Cristal Fashion Cristal like me M10 4 coulours Atlantis soft Cristal stylus Learner bell pen 4 colours 4 colours stylus Shine/Decor/Fl
Slide 52: 2010-2015 Key Figures
2010- 2015 KEY FIGURES FY 2015 FY 2015 €727.0M €83.7M Net Sales IFO Net sales change on a comparative basis Average Volume +7.0% +6.0% +1.0% +0.3% +4.0% +2.0% +3.4% Value +6.7% +4.1% +2.6% +2.1% +4.2% +3.6% +3.9% 15.0% 14.0% 12.1% 12.7% 12.5% 11.5% 12.9% 2010 2011 2012 2013 2014 2015 Normalized IFO
Slide 53: Disclaimer
DISCLAIMER This document contains forward-looking statements. Although BIC believes its expectations 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 and Opportunities” of BIC “Reg
Slide 54: 2016-2017 Agenda
2016-2017 AGENDA 3rd Quarter 2016 Results October 26, 2016 Conference Call Full Year 2016 results 15 February 2017 Meeting – BIC Headquarters First quarter 2017 results 26 April 2017 Conference Call 2016 AGM 10 May 2017 Meeting – BIC Headquarters All dates to be confirmed 54
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