Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — Q3 2020 Earnings Presentation
28 slides from Societe Bic Sa's earnings presentation, Oct 28, 2020
Slide 1: Third Quarter and Nine Months 2020 Results
THIRD QUARTER AND NINE MONTHS 2020 RESULTS October 28, 2020 1
Slide 2: Q3 and 9M 2020 Key Messages
Q3 and 9M 2020 Key Messages • Improved performance in the Third Quarter, fueled by Europe and North America with robust mid-single-digit Net Sales growth • Strong growth in U.S. Lighters driven by replenishments orders • Continued resilience in Shavers with market share gains in key markets such as
Slide 3: Q3 & 9M 2020 Key Figures
Q3 & 9M 2020 KEY FIGURES NET SALES NORMALIZED IFO NET CASH FROM NORMALIZED EPS NET CASH Change on a NIFO Margin % OPERATING comparative basis % ACTIVITES POSITION Q3 2020 Q3 2020 Q3 2020 441.9M€ 83.3 M€ 1.05€ (-29.1%) 9M 2020 9M 2020 -3.5% 18.9% 231.3M€ (+0.7% year-on-year) 128.1M€ 9M 2020 9M 2020 9
Slide 4: Market Share Gains
Market Share Gains Market Share increased or maintained year on year in 8/10 of our Business Stationery in France Utility Lighters in the U.S. Shavers Market Share in Brazil Market % in Value BIC % sell-out in Value U.S. Market in Value BIC sell-out in value 21.5% 22.7% 37.1% 35.9% 31.1% 27.4% -2.0%
Slide 5: Stationery
STATIONERY FINANCIAL PERFORMANCE MARKET PERFORMANCE % change versus Last Year EUROPE MARKET PERFORMANCE ** Net Sales* NIFO margin*** 0.0% 14.9% -1.2% 9.2% 10.9% 9.2% BIC market 4.3% 2.8% 0.7% share YTD August -2.3% -1.7% -5.8% -4.8% -13.1% +1.4 pts -14.8% -17.8% -17.2% -33.2% 2018 2019 2020 YTD Augu
Slide 6: Lighters
LIGHTERS FINANCIAL PERFORMANCE MARKET & BIC PERFORMANCE % change versus Last Year U.S. NON-REFILLABLE POCKET LIGHTER MARKET PERFORMANCE** Net Sales* NIFO margin*** 2.4% 1.6% BIC market 36.4% 39.8% 38.4% share YTD 34.2% 35.6% 35.7% -0.4% -0.9% 28.7% -0.9% September -0.8% -5.9% -5.7% 13.1% +0.9 pts 20
Slide 7: Shavers
SHAVERS FINANCIAL PERFORMANCE MARKET PERFORMANCE % change versus Last Year US MARKET PERFORMANCE** Net Sales* NIFO margin*** 0.9% 20.2% 18.7% BIC market 17.0% share YTD 14.5% 10.1% 9.1% -2.2% -2.3% September 7.5% -2.9% 10.0% -3.8% -4.2% 7.0% -5.4% -5.2% +1.1 pts -5.9% -6.1% -6.7% -7.3% -0.7% -1.2% 2
Slide 8: Q3 & 9M 2020 Net Sales Evolution
Q3 & 9M 2020 NET SALES EVOLUTION Change in Argentina Change on Change FX impact* Perimeter** impact*** a comparative In million euros Q3 2019 Q3 2020 as reported (in points) (in points) (in points) basis*** Q3 2020 Net Sales 488.0 441.9 (9.4)% (6.4) 0.5 0.0 (3.5)% -31.4 M€ In M€ BRL -12.5 USD -9.0 M
Slide 9: 9M 2020 From Net Sales to IFO
9M 2020 FROM NET SALES TO IFO In million euros Change on a constant currency Change on a 9M 2019 9M 2020 Change as reported basis* comparative basis* Net Sales 1,448.2 1,217.8 (15.9%) (12.6%) (13.2%) (19.7%) Gross Profit 728.9 585.2 Normalized Income 241.1 176.2 (26.9%) from Operations* Income from
Slide 10: 9M 2020 Key Components of Normalized Income From Operations Margin
9M 2020 KEY COMPONENTS OF NORMALIZED INCOME FROM OPERATIONS MARGIN 19.0% +0.5% -2.8% 17.0% +2.2% 16.6% +0.2% 15.0% 14.4% 14.5% -1.1% +3.6% -2.7% -3.4% 13.0% Net Sales decrease 10.9% 11.0% -3.9 points 9.0% COGS -2.4 pts 7.0% OPEX & Related Expenses -0.3 points 5.0% YTD SEP 2019 YTD SEP 2019 YTD SEP 2
Slide 11: Q3 2020 Key Components of Normalized Income From Operations Margin
Q3 2020 KEY COMPONENTS OF NORMALIZED INCOME FROM OPERATIONS MARGIN 30.0% +10.0% -3.0% 25.0% 24.5% COGS 20.0% +0.6% 18.9% -1.4% -2.8pts +1.0% 18.0% -0.1% +0.4% 17.0% OPEX & related expenses 15.0% -0.2 points Net Sales decrease -0.6 pts 10.0% 5.0% Q3 2019 Income Q3 2019 Q3 2019 Gross Profit Brand Supp
Slide 12: 9M 2020 From NIFO to Group Net Income
9M 2020 FROM NIFO TO GROUP NET INCOME In million euros 9M 2019 9M 2020 Normalized* IFO 241.1 176.2 Non-recurring items** 31.9 40.9 IFO 209.2 132.3 Finance revenue/costs +2.8 +7.1 Income before Tax 212.0 139.3 Income tax expense (59.4) (49.2) Effective tax rate 28.0% 35.3% Net Income Group share 152.
Slide 13: Working Capital
WORKING CAPITAL Inventories in million euros BIC Group Stationery 195.1 In million euros Dec 2019 Sep 2020 Total Working Capital 637.8 549.2 Lighters 123.0 Of which inventories 455.6 418.0 Shavers 90.9 Of which Trade and other receivables 545.6 481.5 Of which Trade Other Products 9.0 and other payab
Slide 14: 30 September 2020 Net Cash Position
30 SEPTEMBER 2020 NET CASH POSITION In million euros Operations + 71.3 - 58.2 -110.2 +160.0 -7.4 -37.4 146.9 -36.8 Net Cash 128.2 From Operating activities +231.3M€ December 2019 Operating cash flow Change in working CAPEX Dividend Payment Net cash from Acquisitions* Others (mainly FX) September 202
Slide 15: Full Year 2020 Outlook
FULL YEAR 2020 OUTLOOK • For the balance of the year, overall performance will continue to be subject to macro-economic uncertainties and consumption trends, affecting our three categories. Risks associated with the pandemic persist, with Latin America and India amongst the most disrupted regions. B
Slide 16: Thank You
THANK YOU
Slide 17: Appendix
APPENDIX
Slide 18: Main Exchange Rate Evolution vs. Euro
Q3 and 9M 2020 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average rates Average rates % of sales 9M 2019 9M 2020 % of change % of sales Q3 2019 Q3 2020 % of change US Dollar 42% 1.11 1.17 -4.6% US Dollar 43% 1.12 1.12 +0.1% Brazilian Real 7% 4.40 6.26 -29.6% Brazilian Real 6% 4.36 5.69 -23.3% M
Slide 19: Group Quarterly Figures
GROUP QUARTERLY FIGURES Restated Restated for IFRS 15 for IAS 29 In million euros 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 Q3 20 Net Sales 473.2 599.0 471.7 497.4 2 041.4 415.4 543.9 479.5 511.0 1 949.8 415.4 544.8 488.0 501.2 1 949.4 357.
Slide 20: 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 Q3 20 Europe Net Sales 124.3 176.1 138.0 121.4 559.7 122.8 167.9 143.5 124.7 558.9 119.1 138.6 147.2 YoY actual changes -5.5% -2.8% +0.2% +1.5% -1.8% -1.2
Slide 21: Stationery
STATIONERY Restated Restated for Unallocated Group Costs 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 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 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 1
Slide 22: Lighters
LIGHTERS Restated Restated for Unallocated Group Costs 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 Q3 20 Net Sales 152.7 165.0 163.8 204.3 685.8 149.7 169.9 161.9 197.4 679.0 149.7 169.9 161.9 197.4 679.0 121.0 147.3 171
Slide 23: Shavers
SHAVERS Restated Restated for Unallocated Group Costs 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 Q3 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 98.6 102.9
Slide 24: 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 Q3 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 6.6 YoY actual changes -31.4% -25.8% -19.2
Slide 25: Unallocated Costs
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 IFO* -12.6 -37.6 -14.9 -21.5 -86.7 -18.8 -20.1 -14.5 Normalized IFO* -12.6 -10.6 -10.0 -15.9 -49.1 -17.0 -17.2 -13.2 (*) See glossary 25
Slide 26: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of September 30, 2020, the total number of issued shares of SOCIÉTÉ BIC is 45,532,240 shares, representing: • 66,933,684 voting rights • 66,383,107 voting rights excluding shares without voting rights Total number of treasury shares held at the end of September 2020: 550
Slide 27: 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 28: 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