Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — H1 2020 Earnings Presentation
30 slides from Societe Bic Sa's earnings presentation, Jul 29, 2020
Slide 1: First Half 2020 Results
FIRST HALF 2020 RESULTS July 29, 2020 1
Slide 2: H1 2020 Key Messages
H1 2020 Key Messages • Weak underlying trends worsened by an uneven COVID-19 epidemic impact • Developing countries, where traditional stores are dominant, deeply hit by extended quarantines periods and disrupted supply chains • In Mature markets, Superstores and Office Supply channels heavily impac
Slide 3: Q2 & H1 2020 Key Figures
Q2 & H1 2020 KEY FIGURES NET SALES NORMALIZED IFO NET CASH FROM NORMALIZED EPS NET CASH Change on a NIFO Margin % OPERATING comparative basis % ACTIVITES POSITION Q2 2020 Q2 2020 Q2 2020 Q2 2020 418.9 M€ 67.5 M€ 1.27€ (-18.1%) 50.8m€ -21.5% 16.1% H1 2020 H1 2020 H1 2020 H1 2020 H1 2020 41.5M€ 775.8
Slide 4: Stationery Market & BIC Performance
STATIONERY MARKET & BIC PERFORMANCE EUROPE** U.S.** Net Sales NIFO 0.5% 0.3% 0.5% Q2 166.9 M€ Q2 18.2 M€ 0.3% H1 293.9 M€ H1 19.0 M€ BIC market BIC market share share Net Sales* NIFO margin 14.9% 9.2% 10.9% +0.4 pts +0.1 pts 4.2% 2.8% 0.7% -9.8% -10.2% -2.3% -1.7% -4.8% -5.8% 2018 2019 2020 YTD 2018
Slide 5: Lighters Market & BIC Performance
LIGHTERS MARKET & BIC PERFORMANCE Net Sales NIFO U.S. Non-Refillable Pocket Lighter** Q2 147.3 M€ Q2 52.5 M€ 2.6% 1.50% BIC total market share H1 268.2 M€ H1 87.3 M€ -0.8% -0.9% -1.8% -2.1% YTD Net Sales* NIFO margin -5.9% -5.7% +0.6 pts 2018 2019 2020 YTD June 2020 13 Weeks 39.8% Total US Convenien
Slide 6: Shavers US Market Performance
SHAVERS US MARKET PERFORMANCE** 0.9% Net Sales NIFO 14.3 M€ -2.9% -3.8% -2.2% -2.3% Q2 98.6 M€ Q2 -4.2% -5.9% -5.5% -6.5% 2018 2019 2020 YTD June H1 200.7 M€ 21.9 M€ Total Refillable One Piece H1 BIC’s US MARKET SHARE / One Piece segment** Net Sales* NIFO margin In value (in pts) 20.2% 1.9 1.7 1.9 1
Slide 7: Market Share Gains
Market Share Gains Stationery in France U.S. Utility Lighters Shavers in Brazil YTD May 1.1% YTD June 13 weeks 21.3% 22.4% 50.4% 37.8% 35.6% 24.3% -4.6% Market in Value BIC sell-out in Value VAL U.S. Market in Value BIC sell-out in value YTD MAY '19 YTD MAY '20 BIC market share YTD May BIC market sh
Slide 8: Slide 8
Slide 9: Q2 & H1 2020 Net Sales Evolution
Q2 & H1 2020 NET SALES EVOLUTION Change in Argentina Change on Change FX impact* Perimeter** impact*** a comparative In million euros Q2 2019 Q2 2020 as reported (in points) (in points) (in points) basis*** Q2 2020 Net Sales 544.8 418.9 (23.1)% (1.5) (0.1) 0.0 (21.5)% -8.0M€ In M€ USD +3.6 BRL -6.1
Slide 10: H1 2020 From Net Sales to IFO
H1 2020 FROM NET SALES TO IFO In million euros Change on a constant currency Change on a H1 19 H1 20 Change as reported basis* comparative basis* Net Sales 960.2 775.8 (19.2)% (17.7)% (18.2)% (22.4%) Gross Profit 478.5 371.2 Normalized Income 153.1 92.9 (39.3%) from Operations* Income from 126.1 24.
Slide 11: Q2 2020 Key Components of Normalized Income From Operations Margin
Q2 2020 KEY COMPONENTS OF NORMALIZED* INCOME FROM OPERATIONS MARGIN 18.1% + 0.1% + 1.1% - 3.2% 16.1% 13.1% + 5.0% - 1.3% COGS: -4.1pts Net Sales in decrease: -6.2 pts - 10.0% OPEX & related expenses: -0.5 pts - 4.6% 0.2% Q2 2019 Income Q2 2019 Q2 2019 Change in Gross Brand Support OPEX and Other Q2
Slide 12: H1 2020 Key Components of Normalized Income From Operations Margin
H1 2020 KEY COMPONENTS OF NORMALIZED* INCOME FROM OPERATIONS MARGIN 15.9% + 0.5% + 0.2% 13.1% + 2.8% COGS: -2.2 pts - 4.6% 12.0% OPEX & related expenses: -0.3 pts - 1.0% Net Sales decrease: -5.9 pts - 5.4% 3.1% -2.5% H1 2019 Income H1 2019 H1 2019 Change in Gross Brand Support OPEX and H1 2020 H1 20
Slide 13: H1 2020 From NIFO to Group Net Income
H1 2020 FROM NIFO TO GROUP NET INCOME In million euros H1 2019 H1 2020 Normalized* IFO 153.1 92.9 Non-recurring items** 27.0 68.9 IFO 126.1 24.0 Finance revenue/costs (1.7) +9.9 Income before Tax 124.4 33.9 Income tax expense (34.8) (11.8) Effective tax rate 28.0% 34.8% Net Income Group share 89.6 2
Slide 14: Working Capital
WORKING CAPITAL Inventories in million euros BIC Group Stationery 234.0 In million euros June 2019 June 2020 Total Working Capital 736.1 648.3 Lighters 139.9 Of which inventories 494.8 484.9 Shavers 102.2 Of which Trade and other receivables 639.6 517.1 Of which Trade Other Products 8.8 and other pa
Slide 15: 30 June 2020 Net Cash Position
30 JUNE 2020 NET CASH POSITION In million euros Operations 95.6 - 9.9 - 31.2 146.9 Net Cash From Operating activities +85,7M€ -110.2 -7.4 -2.7 41.5 -39.6 December 2019 Operating cash flow Change in working CAPEX Dividend Payment Net cash from Acquisitions* Others (mainly FX) June 2020 Net Net Cash P
Slide 16: Conclusion: H2 2020 Main Risks Associated With COVID-19
CONCLUSION H2 2020: MAIN RISKS ASSOCIATED WITH THE COVID-19 PANDEMIC • Lower consumer spending and in-store traffic affecting our three categories. • Timing, roll-out, and conditions of the re-opening of schools and universities in the Northern hemisphere remain uncertain and could jeopardize the su
Slide 17: Conclusion: Our Priorities for 2020
CONCLUSION OUR PRIORITIES FOR 2020 For the balance of the year, we will continue to focus on protecting Operating Cash Flow generation, and we are on track to achieving the actions announced in May to mitigate the impact of the crisis: Managing OPEX, the negative impact of Net Sales decrease on No
Slide 18: Thank You
THANK YOU
Slide 19: Appendix
APPENDIX
Slide 20: Main Exchange Rate Evolution vs. Euro
Q2 and H1 2020 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average rates Average rates % of sales H1 2019 H1 2020 % of change % of sales Q2 2019 Q2 2020 % of change US Dollar 47% 1.12 1.10 +2.1% US Dollar 43% 1.13 1.10 +2.5% Brazilian Real 4% 4.41 5.91 -25.4% Brazilian Real 6% 4.34 5.41 -19.7% M
Slide 21: Group Quarterly Figures
GROUP QUARTERLY FIGURES Restated for IFRS 15 Restated for IAS 29 In million euros Q1 16 Q2 16 Q3 16 Q4 16 FY 16 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Net Sales 469,3 562,2 490,5 503,8 2 025,8 2 020,3 473,2 599,0 471,7 497,4 2 041,
Slide 22: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY Restated for 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 Europe 124,3 176,1 138,0 121,4 559,7 122,8 167,9 143,5 124,7 558,9 119,1 138,6 Net Sales YoY actual changes -5,5% -2,8% +0,2% +1,5% -1,8% -1,2% -4,6% +4,0
Slide 23: Stationery
STATIONERY 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 FY 19 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 Q2 20 Net Sales 151.8 249.5 200.2 170.4 771.9 148.3 252.5 204.3 169.3 774.4 148.3 252.5 204.3 169.3 774.4 127.0 166.9 YoY act
Slide 24: Lighters
LIGHTERS Restated for Unallocated Group Costs Restated for IAS 29 In million euros Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 Q2 20 Net Sales 152,7 165,0 163,8 204,3 685,8 149,7 169,9 161,9 197,4 679,0 149,7 169,9 161,9 197,4 679,0 121,0 147,3 YoY actua
Slide 25: Shavers
SHAVERS 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 FY 19 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 Q2 20 Net Sales 97,0 113,5 104,4 123,1 438,0 109,0 115,5 114,9 123,5 463,0 109,0 115,5 114,9 123,5 463,0 102,0 98,6 YoY actual c
Slide 26: Other Products
OTHER PRODUCTS Restated for Unallocated Group Costs In million euros Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 19 Q2 19 Q3 19 Q4 FY 19 Q1 20 Q2 20 Net Sales 13,8 15,9 11,1 13,2 54,0 8,3 7,0 6,9 10,9 33,1 8,3 7,0 6,9 10,9 33,1 7,0 6,1 YoY actual changes -31,4% -25,8% -19,2% -12,3% -
Slide 27: 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 IFO* -12,6 -37,6 -14,9 -21,5 -86,7 -18,8 -20,1 Normalized IFO* -12,6 -10,6 -10,0 -15,9 -49,1 -17,0 -17,2 (*) See glossary 27
Slide 28: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of June 30, 2020, the total number of issued shares of SOCIÉTÉ BIC is 45,532,240 shares, representing: • 66,992,235 voting rights • 66,440,239 voting rights excluding shares without voting rights Total number of treasury shares held at the end of June 2019: 551 996. 28
Slide 29: 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 At constant currencies and constant perimeter. Figures at constant perimeter exclude or Comparative basis the impacts of acqu
Slide 30: 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 and Opportunities” of BIC “Regist