Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — Q3 2019 Earnings Presentation
30 slides from Societe Bic Sa's earnings presentation, Oct 23, 2019
Slide 1: Third Quarter and Nine Months 2019 Results
THIRD QUARTER AND NINE MONTHS 2019 RESULTS October 23, 2019
Slide 2: 9M Highlights & Category Spotlights
9M HIGHLIGHTS & CATEGORY SPOTLIGHTS Gonzalve BICH 2
Slide 3: 9 Months 2019 Key Messages
9 MONTHS 2019 KEY MESSAGES Maintaining or Continued Q3 2019 growing challenging market share Execution of impacted by « BIC 2022- trading the deterioration in most environment geographies Invent the of the U.S Future » Lighters market and soft plan on track Stationery Net Sales 3
Slide 4: Q3 & 9M 2019 Financial Performance
Q3 & 9M 2019 FINANCIAL PERFORMANCE Net Sales Normalized IFO Normalized EPS Net Cash Change on a Margin Position comparative basis Q3 2019 Q3 2019 Q3 2019 488.0 M€ 88.0 M€ 9M 2019 1.48 € -0.5% 18.0% 118.7 M€ 9M 2019 9M 2019 9M 2019 1,448.2 M€ 241.1 M€ 3.93 € -1.2% 16.6% 4
Slide 5: Category Spotlights
Category Spotlights Stationery Lighters Shavers Net sales Net sales Net sales Q3 204.3 M€ - 1.7 %* Q3 161.9 M€ - 4.2 %* Q3 114.9 M€ +7.0 %* 9M 605.1 M€ - 3.0 %* 9M 481.6 M€ - 3.2 %* 9M 339.4 M€ + 5.1 %* NIFO margin NIFO margin NIFO margin Q3 14.5 M€ 7.1 % Q3 54.3 M€ 33.5 % Q3 20.8 M€ 18.1 % 9M 48.7
Slide 6: Consolidated Results
CONSOLIDATED RESULTS Jim DIPIETRO 6
Slide 7: Net Sales Evolution
Q3 & 9M 2019 NET SALES EVOLUTION Change in Argentina Change on Change FX impact* Perimeter** impact*** a comparative In million euros Q3 2018 Q3 2019 as reported (in points) (in points) (in points) basis*** Q3 Net Sales 479.5 488.0 +1.8% +2.7 (0.2) (0.2) (0.5)% 2019 +13.0 M€: In M€ USD +8.3 BRL +1.7
Slide 8: Key Components of Normalized Income from Operations Margin
Q3 and 9M 2019 KEY COMPONENTS* OF NORMALIZED INCOME FROM OPERATIONS MARGIN +1.0 18.0% +0.8 16.1% +0.1 Q3 2019 Q3 2018 Normalized* IFO Change in cost of Total brand support OPEX and other expenses Q3 2019 Normalized* IFO margin production margin 18.4% -2.0 -0.6 +0.8 16.6% 9M 2019 9M 2018 Normalized*
Slide 9: From NIFO to Group Net Income
9M 2019 FROM NIFO TO GROUP NET INCOME In million euros 9M 2018 9M 2019 Normalized* IFO 265.3 241.1 Restructuring costs (transformation plan) - 31.9 Cello goodwill impairment in 2018 68.7 - Argentina hyperinflationary accounting (IAS29) 0.3 IFO 196.3 209.2 Finance revenue/costs 5.1 2.8 Income before
Slide 10: Working Capital
WORKING CAPITAL In million euros December 2018 September 2019 Total Working Capital 621.2 684.8 Of which inventories 449.2 492.5 Of which Trade 534.7 553.6 and other receivables Of which Trade (137.7) (134.2) and other payables INVENTORIES IN DAYS RECEIVABLES IN DAYS 184 178 187 79 74 67 September 2
Slide 11: Net Cash Position
NET CASH POSITION In million euros Operations +250.3 (20.6) (67.9) 161.5 (155.2) (39.2) Net Cash From Operating activities (2.4) (7.8) +229.7 M€ 118.7 December 2018 Operating cash Change in CAPEX Dividend Share buyback Haco industries Others September 2019 Net Cash flow working capital payment acqui
Slide 12: Looking Ahead
LOOKING AHEAD Gonzalve BICH 12
Slide 13: 2019 Outlook
2019 OUTLOOK* NET SALES NORMALIZED IFO MARGIN We expect Group Net Sales We expect Normalized IFO margin to be between flat and -2.0% to be in the lower end of the 16.5% on a comparative basis to 18% range (*) See 11-OCT-2019 Press Release on FY19 Outlook Adjustment 13
Slide 14: Third Quarter and Nine Months 2019 Results
THIRD QUARTER AND NINE MONTHS 2019 RESULTS
Slide 15: Appendix
APPENDIX
Slide 16: Net Sales by Geography
9M 2019 NET SALES BY GEOGRAPHY 9M Net Sales - 1.2% on a comparative basis EUROPE 2.1% NORTH -2.7% AMERICA DEVELOPING -2.7% MARKETS 16
Slide 17: 9M 2019 Net Sales Breakdown
9M 2019 NET SALES BREAKDOWN BY CATEGORY BY GEOGRAPHY 2% Other products 30% 23% 42% 30% Europe Shavers Stationery Developing markets 33% Lighters 40% North America 17
Slide 18: Stationery Market Performances and BIC's Market Share
STATIONERY MARKET PERFORMANCES AND BIC’S MARKET SHARE Europe market (in value) U.S. market (in value) 0.6% BIC market +0.1% BIC market share share -0.2 pts +0.4 pts 0.2% -1.2% Dec 2018 Aug 2019 YTD Dec 2018 September 2019 YTD Source: In value - EU7 GFK AUG-2019 - 60% coverage (France, UK, Germany, I
Slide 19: US Market Performances and BIC's Market Share (Shavers)
SHAVERS US Market Performances and BIC’s Market Share Off-line Market Sales (in value) BIC’s Market Share Change - One Piece Segment (in value) 3.0 2.8 -1.6% 1.9 1.9 2.1 -2.2% -2.1% 2.0 1.4 -3.1% -2.9% -3.0% 0.7 0.9 0.9 1.0 -4.1% -3.8% -3.8% -3.8% -4.1% -4.7% -5.0% 0.0 -5.8% -6.3% -6.9% -1.0 -0.5 -0
Slide 20: Main Exchange Rate Evolution vs. Euro
Q3 and 9M 2019 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average rates Average rates % of sales Q3 2018 Q3 2019 % of change % of sales 9M 2018 9M 2019 % of change US Dollar 39% 1.16 1.11 +4.6% US Dollar 39% 1.19 1.12 +6.3% Brazilian Real 8% 4.60 4.40 +4.5% Brazilian Real 7% 4.30 4.36 -1.5% Mex
Slide 21: Group Quarterly Figures
GROUP QUARTERLY FIGURES GROUP QUARTERLY FIGURES Restated for Restated for IFRS 15 IAS 29 In million euros Q1 17 Q2 17 Q3 17 Q4 17 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 Net Sales 469.2 593.7 465.8 491.6 2,020.3 473.2 599.0 471.7 497.4 2,041.4 415.4 543.9
Slide 22: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY GROUP QUARTERLY FIGURES BY GEOGRAPHY Restated for Restated for IFRS 15 IAS 29 In million euros Q1 17 Q2 17 Q3 17 Q4 17 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 Europe 129.5 177.5 135.3 116.9 559.3 131.5 181.2 137.7 119.6
Slide 23: Stationery
STATIONERY STATIONERY Restated for Restated for IFRS 15 IAS 29 In million euros Q1 17 Q2 17 Q3 17 Q4 17 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 Net Sales 163.4 264.7 191.3 172.4 791.8 165.5 267.8 194.6 176.3 804.2 151.8 249.5 200.2 170.4 771.9 148.3 252.5
Slide 24: Lighters
LIGHTERS LIGHTERS Restated for Restated for IFRS 15 IAS 29 In million euros Q1 17 Q2 17 Q3 17 Q4 17 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 Net Sales 171.3 185.5 157.9 189.1 703.9 172.2 186.4 159.2 189.6 707.4 152.7 165.0 163.8 204.3 685.8 149.7 169.9 161.
Slide 25: Shavers
SHAVERS SHAVERS Restated for Restated for IFRS 15 IAS 29 In million euros Q1 17 Q2 17 Q3 17 Q4 17 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 Net Sales 114.4 122.0 102.9 115.1 454.4 115.3 123.4 104.2 116.5 459.4 97.0 113.5 104.4 123.1 438.0 109.0 115.5 114.9 Y
Slide 26: Other Products
OTHER PRODUCTS OTHER PRODUCTS Restated for IFRS 15 In million euros Q1 17 Q2 17 Q3 17 Q4 17 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 Net Sales 20.1 21.4 13.7 15.0 70.2 20.2 21.5 13.7 15.0 70.4 13.8 15.9 11.1 13.2 54.0 8.3 7.0 6.9 YoY actual changes -3.2% -1
Slide 27: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of September 30, 2019, the total number of issued shares of SOCIÉTÉ BIC is 46,010,907 shares, representing: • 67,594,876 voting rights • 66,584,956 voting rights excluding shares without voting rights Total number of treasury shares held at the end of September 2019: 1,0
Slide 28: 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 29: 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
Slide 30: Third Quarter and Nine Months 2019 Results
THIRD QUARTER AND NINE MONTHS 2019 RESULTS October 23, 2019