Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — H1 2022 Earnings Presentation
33 slides from Societe Bic Sa's earnings presentation, Aug 2, 2022
Slide 1: BIC Q2 & H1 2022 Results Presentation
BIC Q2 & H1 2022 RESULTS PRESENTATION August 2, 2022 1
Slide 2: H1 2022 Key Financial Figures
H1 2022 KEY FINANCIAL FIGURES Solid Growth and Resilience to Input Cost Inflation Headwinds NET SALES ADJUSTED EBIT ADJUSTED EPS FREE CASH FLOW* 1,127.2 M€ 202.9 M€ 3.39€ 22.4M€ Change at Constant Change at actual aEBIT aEBIT Margin Margin Net Cash Position Currencies +15.3% currencies 18.0% 229.9M€
Slide 3: Horizon Strategic Plan in Action
HORIZON STRATEGIC PLAN IN ACTION Strong momentum in all divisions Human Expression Flame For Life Blade Excellence Solid Back-to-School sell-in An increasingly value- Continued growth in for Europe, North America driven performance One-Piece & Hybrid and Mexico – Growth in Rapid ramp-up of BIC Blade
Slide 4: Horizon Strategic Plan in Action: Growth Drivers
HORIZON STRATEGIC PLAN IN ACTION Progress in all Horizon’s Growth Drivers Revenue Growth Innovation E-commerce Sustainability Management 5.5% market share* +14% in +25% average Sales Greenhouse Gas emission for EZ Reach E-commerce sales Growth per SKU reduction targets for 2030 lighter announced in
Slide 5: H1 2022 Category Snapshot
H1 2022 CATEGORY SNAPSHOT HUMAN EXPRESSION FLAME FOR LIFE BLADE EXCELLENCE 438 M€ Net Sales 436.0 M€ Net Sales 240.3 M€ Net Sales + 25.4% at CC* +10.1% at CC* +11.8% at CC* 35.6 M€ aEBIT 166.9 M€ aEBIT 43.3 M€ aEBIT 8.1% margin 38.3% margin 18.0% margin Robust Back-to-School performance in the Doubl
Slide 6: Q2 2022 Net Sales Evolution
Q2 2022 NET SALES EVOLUTION In million euros +9.5 pts +1.2 pts +0.6 pts 611.4 +9.6 pts 48.0 5.5 4.1 505.7 48.0 +20.9% as reported Q2 2021 Net Sales Change on a comparative FX impact Perimeter impact Argentina Q2 2022 Net Sales as reported basis as reported 6
Slide 7: H1 2022 Net Sales Evolution
H1 2022 NET SALES EVOLUTION In million euros +7.8 pts +0.9 pts +0.6 pts 1127.2 +13.7 pts 70.4 8.0 8.1 916.7 124.0 +23.0% as reported H1 2021 Net Sales Change on a comparative FX impact Perimeter impact Argentina H1 2022 Net Sales as reported basis as reported 7
Slide 8: Q2 2022 Key Components of Change in Adjusted EBIT
Q2 2022 KEY COMPONENTS OF CHANGE IN ADJUSTED EBIT 20.9% 3.2 pts 0.9 pts 16.5% -4.3 pts -1.3 pts -1.8 pts - 1.1 pts Of which: Price: +2.1 pts Raw Materials: -3.5 pts Air & Sea Freight: -2.1 pts Absorption: +1.9pts FX: -0.6 pts Q2 2021 Adjusted Change in GP Operating leverage Increase in Brand Decreas
Slide 9: H1 2022 Key Components of Change in Adjusted EBIT
H1 2022 KEY COMPONENTS OF CHANGE IN ADJUSTED EBIT 4.6 pts 0.2 pts 18.0% 18.1% -1.1 pts -0.6 pts - 0.9 pts -2.3 pts 19.8% Of which: Price: +1.4 pts Raw Materials: -2.6 pts Air & Sea Freight: -2.0 pts Absorption: +2.0 pts FX: -0.7 pts H1 2021 Adjusted EBIT Change in GP Operating leverage Increase in B
Slide 10: Input Cost Inflation
INPUT COST INFLATION* Impact on Gross Profit in H1 22 FY 21 / FY 20 Q1 22 / Q1 21 Q2 22 / Q1 21 H1 22 / H1 21 Raw - 8 M€ - 6 M€ - 18 M€ - 24 M€ Materials Sea & Air Freight - 14 M€ - 7 M€ - 11 M€ - 18 M€ Import Costs Electricity Costs - 6 M€ - 6 M€ Total - 22 M€ - 13 M€ - 35M€ - 48M€ Approximately 10
Slide 11: H1 2022 From Adjusted EBIT to Net Income
H1 2022 FROM ADJUSTED EBIT TO NET INCOME In million euros H1 2021 H1 2022 Adjusted EBIT* 166.1 202.9 H1 2022 non-recurring items included: Non-recurring items** (166.5) 5.3 - (2.3) million euros of acquisition costs related to Inkbox announced in January 2022, Djeep EBIT 332.6 197.7 price adjustment
Slide 12: Capex – Depreciation & Amortization
CAPEX – DEPRECIATION & AMORTIZATION In million euros Other Human 0.83 (Corporate Expression 0.77 and IT) 19% 27% 0.61 H1 2022 98 CAPEX: 40 M€ 75 49 48 40 Blade 30 Flame For Life Excellence 21% 33% FY 2021 H1 2021 H1 2022 CAPEX Depreciation & Amortization CAPEX to D&A Ratio App. 50% of Growth CAPEX 1
Slide 13: Working Capital
WORKING CAPITAL In million euros 54.5 706.2 40.2 RECEIVABLES IN DAYS* 2.3 535.6 11.0 73 78 72 138.8 488.3 Jun-21 Dec-21 Jun-22 102.1 Of which app. 40 million euros related to input cost inflation INVENTORIES IN DAYS** Operating activities: -175.3 M€ 199 200 181 Jun-21 Dec-21 Jun-22 jun-21 Dec-21 Net
Slide 14: H1 2022 Net Cash Position
H1 2022 NET CASH POSITION In million euros Operations 275.6 212.8 1.1 400.1 40.4 67.8 Net Cash From Operating activities 94.7 +62.8M€ 2.8 229.9 28.4 December 2021 Operating cash Change in working CAPEX Proceeds from Acquisitions Dividend Share buyback net Others June 2022 Net Net Cash Position flow
Slide 15: 2022 Outlook
2022 OUTLOOK We are updating our guidance and expect to grow Full-Year Net Sales between 10% and 12% at constant currencies (previously 7-9%), driven by volume increase and favorable pricing. All divisions will contribute to organic growth in H2. Input cost inflation is expected to have an impact of
Slide 16: Thank You
THANK YOU 16
Slide 17: Appendix
APPENDIX 17
Slide 18: 2022 Market Assumptions
2022 MARKET ASSUMPTIONS* LIGHTERS STATIONERY SHAVERS (pocket) Low to mid-single digit Flat to low-single digit Flat to low-single digit EUROPE decrease decrease decrease Low to mid-single-digit Low to mid-single digit NORTH AMERICA Slight decrease decrease decrease Low to mid-single-digit Low to mid
Slide 19: 2022 Main Net Sales, Adjusted EBIT and Free Cash Flow Drivers
2022 MAIN NET SALES, ADJUSTED EBIT AND FREE CASH FLOW DRIVERS Organic Growth New businesses Line Extensions & RGM Volumes New Products Market Share Gains Inkbox (Price and Promotions) Net Sales Gross Profit Adjusted EBIT Increase in volume Price increases Increase in Brand Support to support 2022 Ne
Slide 20: H1 2022 Net Sales Breakdown
H1 2022 NET SALES BREAKDOWN BY CATEGORY BY GEOGRAPHY Other products North America Blade 44% 1% Human Excellence Europe 21% Expression 30% 39% Asia & Oceania (Including India) Latin America Middle East Flame for Life 5% & Africa 16% 39% 5% 20
Slide 21: Sensitivity to Net Sales and IBT of USD-EUR Fluctuation
SENSITIVITY TO NET SALES AND IBT* OF USD-EUR FLUCTUATION H1 2021 H1 2022 +/- 5% change in USD impact on Net Sales 2.2% 2.2% +/- 5% change in USD impact on IBT 0.8% 1.3% * IBT Income before tax 21
Slide 22: H1 2022 Foreign Currencies Impact on Net Sales
H1 2022 FOREIGN CURRENCIES IMPACT ON NET SALES 5.2 Total impact: +7.8 pts 1.2 0.6 0.3 0.4 0.1 BRL USD MXN RUB/UAH ZAR OTHERS 22
Slide 23: Main Exchange Rate Evolution vs. Euro
H1 2022 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average rates % of sales H1 2021 H1 2022 % of change US Dollar 44% 1.20 1.09 -10.3% Brazilian Real 7% 6.48 5.54 -17.0% Mexican Peso 5% 24.33 22.13 -10.0% Argentina Peso 2% 110.36 122.70 10.3% Canadian dollar 3% 1.50 1.39 -8.1% Australian dollar
Slide 24: Group Quarterly Figures
GROUP QUARTERLY FIGURES In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Net Sales 357.0 418.9 441.9 410.1 1,627.9 411.0 505.7 478.4 436.8 1,831.9 515.7 611.4 YoY actual changes -14.1% -23.1% -9.4% -18.2% -16.5% +15.1% +20.7% +8.2% +6.5% +12.5% +25.5% +20.9% Y
Slide 25: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Europe Net Sales 119.1 138.6 147.2 112.3 517.3 125.2 166.8 155.4 123.1 570.6 146.5 190.4 YoY actual changes -3.0% -17.4% +2.6% -9.9% -7.5% +5.2% +20.3% +5.6% +9.6% +10.3% +17
Slide 26: Human Expression
HUMAN EXPRESSION In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Net Sales 126.9 166.9 161.3 120.5 575.6 131.1 202.2 197.5 153.1 683.8 168.3 269.7 YoY actual changes -14.4% -33.9% -21.1% -28.8% -25.7% +3.3% +21.2% +22.4% +27.0% +18.8% +28.4% +33.4% YoY change
Slide 27: Flame for Life
FLAME FOR LIFE In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Net Sales 121.0 147.3 171.1 178.7 618.1 174.5 192.9 170.7 180.4 718.5 226.4 209.7 YoY actual changes -19.2% -13.3% +5.7% -9.5% -9.0% +44.2% +31.0% -0.2% +0.9% +16.2% +29.7% +8.7% YoY changes on a
Slide 28: Blade Excellence
BLADE EXCELLENCE In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Net Sales 102.0 98.6 102.9 100.6 404.2 96.4 104.0 104.6 96.2 401.2 113.5 126.8 YoY actual changes -6.4% -14.6% -10.4% -18.5% -12.7% -5.5% +5.4% +1.6% -4.4% -0.7% +17.7% +22.0% YoY change on a co
Slide 29: Other Products
OTHER PRODUCTS In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Net Sales 7.0 6.1 6.6 10.3 30.0 9.0 6.6 5.7 7.1 28.4 7.6 5.2 YoY actual changes -15.7% -12.3% -3.8% -6.3% -9.4% +29.4% +8.7% -14.9% -31.1% -5.3% -16.5% -21.1% YoY changes on a constant currency ba
Slide 30: Unallocated Costs
UNALLOCATED COSTS In million euros Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 EBIT -18.8 -20.1 -14.5 -30.5 -84.0 146.8 -16.5 -16.3 -22.4 -91.6 -20.3 -18.8 Adjusted EBIT -17.0 -17.2 -13.2 -21.0 -68.4 -20.0 -16.5 -16.3 -26.2 -79.1 -20.3 -18.8 (*) See glossary 30
Slide 31: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of 30 June 2022, the total number of issued shares of SOCIÉTÉ BIC is 44,677,929 shares, representing: • 65,721,660 voting rights • 65,005,053 voting rights excluding shares without voting rights Total number of treasury shares held at the end of June 2022: 716,607. 31 31
Slide 32: 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 or Comparative basis: at constant currencies and constant perimeter. Figures at constant perimeter exclude the impact of
Slide 33: 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 Management of BIC’s 2021 Universal