Societe BIC SA · EURONEXT:BB
Societe BIC SA — BIC — Q1 2016 Earnings Presentation
35 slides from Societe BIC SA's earnings presentation, Apr 27, 2016
Slide 1: Q1 2016 Results Presentation
Q1 2016 Results Presentation 27 April 2016 contact@bicworld.com +33 (0)1 45 19 52 26
Slide 2: Group and category highlights
Group and category highlights Mario Guevara Q1 2016 Results Presentation
Slide 3: Group Q1 2016 Key Figures
GROUP Q1 2016 KEY FIGURES Net Sales: 517.3 million euros Consumer business (88% of total sales) +7.2% +6.9% Developed markets +6.3% +1.3% Developing markets +8.7% BIC Graphic As reported Constant currency (12% of total sales) +4.6% basis* Normalized* Income from Operations: 76.4 million euros Normal
Slide 4: Group Q1 2016 Key Figures: EPS and Net Cash
GROUP Q1 2016 KEY FIGURES EPS (Group share): -34.1% Net Cash Position In euros In million euros 1.64 448.0 398.2 387.1 1.08 Q1 2015 Q1 2016 March 2015 December 2015 March 2016 Q1 2016 Results Presentation 4
Slide 5: Q1 2016 Consumer business net sales
Q1 2016 Consumer business 453.1 million euros Net Sales Change on a constant currency basis Breakdown by geographies +7.4% +7.2% 33% 25% DEVELOPING EUROPE MARKETS Q1 2015 Q1 2016 EUROPE +10.1% NORTH AMERICA +4.1% 42% DEVELOPING +8.7% NORTH AMERICA MARKETS Q1 2016 Results Presentation 5
Slide 6: BIC Stationery in Q1 2016
BIC STATIONERY IN Q1 2016 Net sales growth on a constant currency basis* Net sales 2015 +7.9% Developed markets : high single-digit growth 2016 • Europe: good performance across all regions. +1.8% • North America: success of our “Champion brand” strategy. Developing markets: mid-single-digit growth
Slide 7: BIC Lighters in Q1 2016
BIC LIGHTERS IN Q1 2016 Net sales growth on a constant currency basis* Net sales 2015 +9.7% Developed markets +5.4% Europe: high single-digit growth 2016 • Good performance in Western Europe. • Strong growth in Eastern Europe. North America: low single-digit growth In million euros Q1 2015 Q1 2016 •
Slide 8: BIC Shaver in Q1 2016
BIC SHAVER IN Q1 2016 Net sales growth on a constant currency basis* Net sales +14.7% Developed markets 2015 +10.9% Europe: double digit growth • Good performance across all regions. 2016 • Success of our products such as BIC® 3, BIC® Miss Soleil® and BIC® Flex 4 Comfort. North America: mid single-d
Slide 9: Other Consumer Products in Q1 2016
OTHER CONSUMER PRODUCTS IN Q1 2016 Net sales growth on a constant currency basis* 2015 • BIC Sport Net Sales decreased double-digit on a constant currency basis 2016 ‐1.6% ‐5.2% In million euros Q1 2015 Q1 2016 Net sales 16.8 15.7 Income from Operations and Normalized* IFO In million euros Q1 2015 Q
Slide 10: BIC Graphic in Q1 2016
BIC GRAPHIC IN Q1 2016 Net sales growth on a constant currency basis* Net Sales 4.6% Good performance across all three segments and all 2015 regions 2.4% 2016 Europe • Good results in key countries such as France, Germany and Spain. In million euros Q1 2015 Q1 2016 North America Net sales 61.1 64.1
Slide 11: Q1 2016 Consolidated results
Q1 2016 Consolidated results Jim DiPietro Q1 2016 Results Presentation
Slide 12: Q1 2016: From Net Sales to Normalized IFO
Q1 2016: FROM NET SALES TO NORMALIZED IFO Change on a constant BIC Group Change as currency In million euros 2015 2016 reported basis* Net Sales 510.8 517.3 +1.3% +6.9% Gross Profit 262.3 250.5 -4.5% Normalized* IFO 101.8 76.4 -25.0% Income 97.6 76.4 -21.8% from Operations *See glossary Q1 2016 Resu
Slide 13: Q1 2016 Net Sales Evolution
Q1 2016 NET SALES EVOLUTION In million euros FX translation impact +6.9% ‐5.6% 517.3 510.8 ‐28 M€ USD: +5M€ BRL: ‐12 M€ ARS : ‐8 M€ MXN: ‐4M€ ZAR : ‐2M€ INR : ‐1M€ RUB & UAH: ‐1M€ Others: ‐5M€ Q1 2015 Net Sales Change on a constant currency basis FX translation impact Q1 2016 Net Sales Q1 2016 Resul
Slide 14: Key Components of Q1 2016 Normalized IFO Margin
KEY COMPONENTS OF Q1 2016 NORMALIZED* INCOME FROM OPERATIONS MARGIN 19.9% -1.2 -0.8 -0.9 17.0% -2.2 14.8% • Promotions and investments related to consumer and business development support • Impact on Gross Profit: -1.5 accounted for in Gross • Impact in OPEX : -0.7 Profit Margin : -0.3 • Advertising
Slide 15: Q1 2016 From IFO to Group Net Income
Q1 2016 From IFO to Group Net Income In million euros Q1 2015 Q1 2016 Unfavorable Q1 IFO 97.6 76.4 2016 fair value adjustments to Finance revenue/costs 12.7 -3.4 financial assets denominated in Income before Tax 110.3 73.0 USD compared to December 2015. Income tax -33.1 -22.0 Effective tax rate 30.0
Slide 16: Net Cash Position
NET CASH POSITION In million euros Operations +79.9 -63.8 448.0 -33.3 -30.3 -13.4 387.1 Net Cash From Operating activities +16.1 M€ December 2015 Net Operating cash flow Change in working CAPEX Share buyback, exercise Others March 2016 Net Cash Cash Position capital and others of stock options and P
Slide 17: Full year 2016 outlook
Full year 2016 outlook Mario Guevara Q1 2016 Results Presentation
Slide 18: Group Q1 2016 summary
Group Q1 2016 summary Robust organic sales growth driven by increased brand support • Q1 net sales slightly ahead of target Net sales • Strong performance in Stationery and Shavers • Good results in Lighters and for BIC Graphic Decline in Normalized IFO margin Normalized • Decrease in Gross Profit m
Slide 19: 2016 Group Outlook Confirmed
2016 GROUP OUTLOOK CONFIRMED Mid-single digit growth in Net Sales Growth (on a comparative basis) 100 to 150 basis points decline in Normalized Profitability Income From Operation margin due to accelerated Brand Support and R&D investments Net cash from operating activities maintained Cash despite a
Slide 20: Appendix
Appendix Q1 2016 Results Presentation
Slide 21: Q1 2016 Net Sales: Main exchange rate evolution
Q1 2016 NET SALES Main exchange rate evolution vs. euro Average Average rate rate % of sales Q1 2015 Q1 2016 % of change US Dollar 45% 1.13 1.10 3.0% Brazilian Real 7% 3.22 4.29 ‐24.9% Mexican Peso 5% 16.83 19.90 ‐15.4% Argentina 3% 9.79 16.05 ‐39.0% Canadian dollar 2% 1.4 1.51 ‐7.3% Australian doll
Slide 22: Q1 2016 Net Sales Breakdown by category
Q1 2016 NET SALES BREAKDOWN By category 13% 30% BIC GRAPHIC STATIONERY 3% OTHER CONSUMER PRODUCTS 22% SHAVERS 32% LIGHTERS Q1 2016 Results Presentation 22
Slide 23: Q1 2016 Net Sales Breakdown by geography
Q1 2016 NET SALES BREAKDOWN By geography 30% 24% DEVELOPING MARKETS EUROPE 46% NORTH AMERICA Q1 2016 Results Presentation 23
Slide 24: Group Quarterly Figures
GROUP QUARTERLY FIGURES In million euros Q1 13 Q2 13 Q3 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 Q4 14 FY 14 Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Net Sales 428.6 508.9 470.4 479.9 1,887.8 434.2 534.3 496.8 513.8 1,979.1 510.8 623.10 548.3 559.4 2,241.7 517.3 YoY actual changes ‐3.7% +1.6% ‐3.8% +3.4% ‐0.6% +
Slide 25: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY In million euros Q1 13 Q2 13 Q3 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 Q4 14 FY 14 Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Europe 109.6 154 119.9 110.2 493.8 111.4 153.7 130.2 113.9 509.1 117.6 160.0 131.4 118.9 527.8 126.4 Net Sales YoY actual changes ‐1.7% 7.2% ‐0.8% +1.
Slide 26: Group Consumer
GROUP CONSUMER In million euros Q1 13 Q2 13 Q3 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 Q4 14 FY 14 Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Net Sales 375.7 446.8 401.0 396.5 1,619.9 382.6 475.0 426.0 420.0 1,703.6 449.7 551.7 470.0 450.9 1,922.4 453.1 YoY actual changes ‐2.4% +3.0% ‐3.1% +5.7% +0.8% +1.8% +6.3%
Slide 27: Stationery
STATIONERY In million euros Q1 13 Q2 13 Q3 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 Q4 14 FY 14 Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Net Sales 129.7 188.2 150.5 148 616.4 144 212 169.2 151.7 676.9 157.1 233.2 184.3 152.4 727.0 156.0 YoY actual changes ‐6.1% +0.4% ‐6.6% +12.9% ‐0.2% +11.0% +12.6% +12.5% +2.5%
Slide 28: Lighters
LIGHTERS In million euros Q1 13 Q2 13 Q3 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 Q4 14 FY 14 Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Net Sales 137.4 139.6 136.1 144.7 557.8 133.6 145.8 143.6 158.6 581.6 163.5 178.4 158.8 175.0 675.7 163.6 YoY actual changes +0.5% +3.4% +0.4% +0.6% +1.2% ‐2.8% +4.4% +5.5% +9.6%
Slide 29: Shavers
SHAVERS In million euros Q1 13 Q2 13 Q3 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 Q4 14 FY 14 Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Net Sales 91.4 98.7 98.6 88.9 377.5 88.9 98.1 97.9 95.1 380 112.4 117.8 113.0 108.8 452.0 117.8 YoY actual changes ‐1.3% +6.0% ‐3.8% +4.1% +1.1% ‐2.7% ‐0.6% ‐0.7% +7.0% +0.7% +26.
Slide 30: Other Consumer Product
OTHER CONSUMER PRODUCT In million euros Q1 13 Q2 13 Q3 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 Q4 14 FY 14 Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Net Sales 17.2 20.3 15.9 14.9 68.2 16.1 19.1 15.3 14.6 65.1 16.8 22.3 13.9 14.6 67.6 15.7 YoY actual changes ‐2.2% +12.0% +7.2% +0.9% +4.6% ‐6.0% ‐5.8% ‐3.7% ‐1.9%
Slide 31: BIC Graphic
BIC GRAPHIC In million euros Q1 13 Q2 13 Q3 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 Q4 14 FY 14 Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Net Sales 53 62.1 69.4 83.4 267.9 51.7 59.3 70.8 93.8 275.6 61.1 71.4 78.3 108.5 319.3 64.1 YoY actual changes ‐11.9% ‐7.5% ‐7.1% ‐6.4% ‐8.0% ‐2.5% ‐4.4% +1.9% +12.5% +2.9% +1
Slide 32: Miscellaneous
MISCELLANEOUS Capital evolution: As of March 31, 2016, the total number of issued shares of SOCIÉTÉ BIC was 47,949,972 shares, representing: • 69,512,653 voting rights, • 68,607,292 voting rights excluding shares without voting rights. Total treasury shares at the end of March 2016: 905,361. Q1 2016
Slide 33: Glossary
GLOSSARY On a constant currency basis: • Constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates Comparative basis: • On a constant currency basis and constant perimeter Normalized IFO: • Normalized means excluding non-recurring i
Slide 34: Disclaimer
DISCLAIMER This document contains forward-looking statements. Although BIC believes its expectations 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 “Reg
Slide 35: 2016 Agenda
2016 AGENDA 2016 AGM May 18, 2016 Meeting – BIC Headquarters 2nd Quarter and 1st Half 2016 Results August 4, 2016 Conference Call 3rd Quarter 2016 Results October 26, 2016 Conference Call All dates to be confirmed Q1 2016 Results Presentation 35