Societe Bic Sa · EURONEXT:BB

Societe Bic Sa — BIC — Q1 2018 Earnings Presentation

30 slides from Societe Bic Sa's earnings presentation, Apr 25, 2018

  1. Slide 1: Q1 2018 Results Presentation

    Q1 2018 Results Presentation 25 April 2018

  2. Slide 2: Group Q1 2018 Key Figures

    GROUP Q1 2018 KEY FIGURES Net Sales: 415.4 million euros -12,2% -3,0% -1,5% -0,4% EUROPE -0,1% NORTH AMERICA DEVELOPING As reported Constant currency Comparative basis* -3,8% MARKETS basis* Normalized* Income from Operations: 69.6 million euros 17,1% 16,7% Q1 2017 NIFO margin Q1 2018 NIFO margin *Se

  3. Slide 3: Group Q1 2018 Key Figures

    GROUP Q1 2018 KEY FIGURES EPS (Group share): Net Cash Position In euros In million euros 1,06 1,06 206,2 204,9 184,6 Q1 2017 Q1 2018 March 2017 December 2017 March 2018 3

  4. Slide 4: Stationery Market Performances and BIC's Market Share

    STATIONERY Market Performances and BIC’s Market Share Europe U.S. 2017 Feb 2018 YTD 0,2% BIC market BIC market share share -0,8% +0.4 pts +0.9 pts -1,5% -2,4% 2017 Mar 2018 YTD In Value EU7 GFK FEB-2018 - 60% coverage / US NPD 07-APR-18 -95% coverage 4

  5. Slide 5: Stationery

    STATIONERY Net Sales growth* on a comparative basis** +9,1% +4,6% +3,4% +2,6% +2,0% Q1 2018 Net Sales -5,1% €151.8M Q1 Q2 Q3 Q4 Q1 2018 FY 2017 Normalized** IFO margin Q1 2018 NIFO 15,5% €9.6M 8,3% 6,8% 6,3% 3,6% 3,5% Q1 Q2 Q3 Q4 Q1 2018 FY 2017 * 2017 figures are before IFRS 15 Restatement for Net

  6. Slide 6: Lighters

    LIGHTERS Net Sales growth* on a comparative basis** +8,2% +2,0% +2,2% Q1 2018 Net Sales -0,5% -1,7% -0,5% €152.7M Q1 Q2 Q3 Q4 Q1 2018 FY 2017 Normalized** IFO margin Q1 2018 NIFO 41,3% 40,7% 39,2% €54.5M 37,9% 37,2% 35,7% Q1 Q2 Q3 Q4 Q1 2018 FY 2017 * 2017 figures are before IFRS 15 Restatement for

  7. Slide 7: Shavers Market Performances and BIC's Market Share – U.S.

    SHAVERS Market Performances and BIC’s Market Share – U.S. Off-line Market Sales Q1 2018 (in value) BIC’s YTD Market Share Change - One Piece Segment (in value) 2,2% 3,0 2,6 2,2 1,9 1,9 2,0 1,2 1,4 1,0 -1,6% -3,2% -2,8% 0,0 -4,1% -4,1% -4,1% -0,2 -5,0% -1,0 -0,5 -0,4 -0,5 -5,1% -6,3% -1,5 -1,5 -1,3 -

  8. Slide 8: Shavers

    SHAVERS Net Sales growth* on a comparative basis** +4,8% Q1 2018 Net Sales -0,9% -7,7% -5,1% -6,0% -2,2% €97.0M Q1 Q2 Q3 Q4 Q1 2018 FY 2017 Normalized** IFO margin Q1 2018 NIFO 12,3% 14,0% 13,4% 12,6% 13,1% €7.7M 7,9% Q1 Q2 Q3 Q4 Q1 2018 FY 2017 * 2017 figures are before IFRS 15 Restatement for Net

  9. Slide 9: Q1 2018: From Net Sales to Normalized IFO

    Q1 2018: FROM NET SALES TO NORMALIZED IFO Change on a Change on a BIC Group Change as constant comparative In million euros 2017 2018 reported currency basis* basis* Net Sales 473.2 415.4 -12.2% -3.0% -1.5% Gross Profit 250.0 223.5 -10.6% Normalized* IFO 81.1 69.6 -14.2% Income from 74.1 69.6 -6.1%

  10. Slide 10: Q1 2018 Net Sales Evolution

    Q1 2018 NET SALES EVOLUTION In million euros FX translation impact 473,2 -9.2% -1.5% -1.5% 415,4 -44 M€: USD -23M€ BRL -6M€ ARS -4M€ INR -2M€ MXN -2M€ RUB UAH -1M€ Others -6M€ Q1 2017 Net Sales Perimeter impact Change on a comparative FX translation impact Q1 2018 Net Sales basis 10

  11. Slide 11: Key Components of Q1 2018 Normalized Income from Operations Margin

    KEY COMPONENTS OF Q1 2018 NORMALIZED* INCOME FROM OPERATIONS MARGIN +1,6 -0,2 -1,8 17.1% 16.7% • Promotions and investments related to consumer and business • Improvement in development manufacturing support accounted efficiency for in Gross Profit offsetting Margin : -0.6 negative Raw Material impa

  12. Slide 12: Q1 2018 From IFO to Group Net Income

    Q1 2018 FROM IFO TO GROUP NET INCOME In million euros Q1 2017 Q1 2018 IFO 74.1 69.6 Finance revenue/costs 0.7 -2.0 Income before Tax 74.8 67.6 Income tax -22.4 -19.0 Effective tax rate 30.0% 28.1% Net Income From Continuing Operations 52.4 48.6 Net Income From Discontinued -2.8 - Operations Net Inco

  13. Slide 13: Working Capital

    WORKING CAPITAL BIC Group In million euros December 2017 March 2018 Total Working Capital 582.1 618.9 Of which inventories 429.0 476.5 Of which Trade 476.7 441.6 and other receivables Of which Trade -125.5 -121.7 and other payables 13

  14. Slide 14: Net Cash Position

    NET CASH POSITION In million euros Operations +75,2 204,9 -38,2 184,6 -27,4 -21,2 -8,7 Net Cash From Operating activities +37.0 M€ December 2017 Net Operating cash flow Change in working CAPEX Share buyback, Others March 2018 Net Cash Position capital and others exercise of stock Cash Position optio

  15. Slide 15: 2018 Group Outlook

    2018 GROUP OUTLOOK We expect 2018 Group Net Sales to increase between +1 and +3% on a comparative basis, with all categories contributing to the growth. Major factors affecting sales performance could include continued competitive pressures in Shaver, further inventory reductions from retailers, and

  16. Slide 16: Appendix

    Appendix

  17. Slide 17: Q1 2018 Net Sales: Main Exchange Rate Evolution vs. Euro

    Q1 2018 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average Average rate rate % of sales Q1 2017 Q1 2018 % of change US Dollar 37% 1.06 1.23 -13.4% Brazilian Real 7% 3.34 3.99 -16.3% Mexican Peso 6% 21.53 23.03 -6.5% Argentina 2% 16.69 24.28 -31.3% Canadian dollar 3% 1.41 1.56 -9.4% Australian d

  18. Slide 18: Q1 2018 Net Sales Breakdown by Category

    Q1 2018 NET SALES BREAKDOWN BY CATEGORY OTHER PRODUCTS STATIONERY 3% 37% SHAVERS 23% LIGHTERS 37% 18

  19. Slide 19: Q1 2018 Net Sales Breakdown by Geography

    Q1 2018 NET SALES BREAKDOWN BY GEOGRAPHY 33% EUROPE DEVELOPING MARKETS 30% 37% NORTH AMERICA 19

  20. Slide 20: Group Quarterly Figures

    GROUP QUARTERLY FIGURES Restated for IFRS 15 In million euros Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Net Sales 469,3 562,2 490,5 503,8 2 025,8 469,2 593,7 465,8 491,6 2 020,3 473,2 599,0 471,7 497,4 2 041,4 415,4 YoY actual changes +0,3% -1,1%

  21. Slide 21: Group Quarterly Figures by Geography

    GROUP QUARTERLY FIGURES BY GEOGRAPHY Restated for IFRS 15 In million euros Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Europe 126,6 170,0 131,4 116,8 544,8 129,5 177,5 135,3 116,9 559,3 131,5 181,2 137,7 119,6 570,0 124,3 Net Sales YoY actual chang

  22. Slide 22: Stationery

    STATIONERY Restated for IFRS 15 In million euros Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Net Sales 167,1 241,1 193,9 178,2 780,3 163,4 264,7 191,3 172,4 791,8 165,5 267,8 194,6 176,3 804,2 151,8 YoY actual changes -0,4% -1,2% -0,2% +7,0% +1,0%

  23. Slide 23: Lighters

    LIGHTERS Restated for IFRS 15 In million euros Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Net Sales 163,6 177,2 167,6 187,9 696,4 171,3 185,5 157,9 189,1 703,9 172,2 186,4 159,2 189,6 707,4 152,7 YoY actual changes +0,1% -0,7% +5,6% +7,4% +3,1% +4

  24. Slide 24: Shavers

    SHAVERS Restated for IFRS 15 In million euros Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Net Sales 117,8 120,1 111,8 117,3 467,0 114,4 122,0 102,9 115,1 454,4 115,3 123,4 104,2 116,5 459,4 97,0 YoY actual changes +4,8% +2,0% -1,1% +7,8% +3,3% -2,9

  25. Slide 25: Other Products

    OTHER PRODUCTS Restated for IFRS 15 In million euros Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Q1 18 Net Sales 20,8 23,8 17,2 20,3 82,1 20,1 21,4 13,7 15,0 70,2 20,2 21,5 13,7 15,0 70,4 13,8 YoY actual changes -14,0% -14,8% -9,5% -6,8% -11,6% -3,2% -10

  26. Slide 26: Miscellaneous

    MISCELLANEOUS Capital evolution: As of March 31, 2018, the total number of issued shares of SOCIÉTÉ BIC was 46,635,693 shares, representing: • 68,083,950 voting rights, • 67,158,810 voting rights excluding shares without voting rights. Total treasury shares at the end of March 2018: 925,140. 26

  27. Slide 27: Glossary - Miscellaneous

    GLOSSARY - MISCELLANEOUS On a constant currency basis: • Constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates On a comparative basis: • On a constant currency basis and constant perimeter Normalized IFO: • Normalized means excl

  28. 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

  29. Slide 29: 2018 Agenda

    2018 AGENDA 2018 AGM 16 May 2018 Meeting – BIC Headquarters Second quarter 2018 results 01 August 2018 Conference call Third quarter 2018 results 24 October 2018 Conference call All dates to be confirmed 29

  30. Slide 30: Slide 30

BIC — Q1 2018 Earnings Presentation on 6ix