Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — FY2015 Earnings Presentation
64 slides from Societe Bic Sa's earnings presentation, Feb 17, 2016
Slide 1: Full Year 2015 Results Presentation
Full Year 2015 Results Presentation 17 February 2016 [email protected] +33 (0)1 45 19 52 26
Slide 2: 2015: a solid and well balanced performance
2015: a solid and well balanced performance Full Year 2015 Results Presentation
Slide 3: BIC in 2015: Objectives achieved
BIC IN 2015 Objectives achieved Improvement in the Consumer business, well balanced across geographies Sales growth for BIC Graphic Strong cash generation maintained Full Year 2015 Results Presentation 3
Slide 4: Group 2015 Key Figures
GROUP 2015 KEY FIGURES Net Sales: 2,241.7 million euros Consumer business (86% of total sales) +6.9% +13.3% Developed markets +6.6% +5.6% +6.2% Developing markets +7.5% BIC Graphic +1.6% As reported At constant On a comparative (14% of total sales) currency basis Normalized* Income from Operations:
Slide 5: BIC in 2015: Operational Investments
BIC IN 2015 OPERATIONAL INVESTMENTS Marketing and Brand Support CAPEX 41% Development* CAPEX €112M €121M 5.7% of total sales 5.4% of total sales 58 50 Development CAPEX 2014 2015 * Capacity + new buildings and land + new products Full Year 2015 Results Presentation 5
Slide 6: Group 2015 Key Figures
GROUP 2015 KEY FIGURES Net Income Group Share: +24.0% EPS (Group share): +23.7% In million euros In euros 325.1 6.89 262.1 5.57 31-Dec-14 31-Dec-15 2014 2015 Full Year 2015 Results Presentation 6
Slide 7: Cash Generation and Net Cash Position
BIC IN 2015 CASH GENERATION AND NET CASH POSITION In million euros Cash Generation Net Cash Position* 367.1 448.0 349.0 263.6 239.4 320.2 194.4 203.6 Net Cash from Free Cash Free Cash Flow operating before after activities* acquisitions* acquisitions* 2014 2015 31-Dec-14 31-Dec-15 * See glossary Ful
Slide 8: Dividend
BIC IN 2015 DIVIDEND Proposal to the AGM (May 18, 2016): In euros 3.40 euros ordinary dividend** per share (+19%) 2.50 euros exceptional dividend** per share 6.89 5.48 5.57 5.00 5.13 4.29 3.40 3.43 3.51 3.11 3.00 3.15 2.50 2.85 2.56 2.60 2.20 1.80 1.90 1.3 1.35 1.35 1.40 1.00 1.15 37% 38% 38% 45% 44
Slide 9: 2015: operational performance
2015: operational performance Full Year 2015 Results Presentation
Slide 10: Consumer Business
BIC IN 2015 CONSUMER BUSINESS 1,922.4 million euros Net Sales Change on a comparative basis Breakdown by geographies +6.9% +5.3% 34% 25% DEVELOPING EUROPE MARKETS 2014 2015 EUROPE +5.7% NORTH AMERICA +7.3% 41% DEVELOPING MARKETS +7.5% NORTH AMERICA Full Year 2015 Results Presentation 10
Slide 11: Stationery Market Evolution
STATIONERY MARKET EVOLUTION % change vs YAG – value Europe USA August 2015 December 2015 E-commerce 6% Office supply Office suppliers Retail 27% Food & Drug** 9% & traditional stores mass market 44% 56% +22.0% Brick & Mortar* 58% +7.9% +5.0% +5.0% +5.0% +3.0% +3.0% +1.6% Retail mass Office suppliers
Slide 12: BIC Stationery in 2015: Market Share Evolution
BIC STATIONERY IN 2015 MARKET SHARE EVOLUTION MIDDLE EUROPE EAST & AFRICA NORTH AMERICA OCEANIA LATIN AMERICA BIC estimates Full Year 2015 Results Presentation 12
Slide 13: BIC Stationery in 2015
BIC STATIONERY IN 2015 Volumes (in billion of units) Full Year 2015 2014 2015 % change Developed markets Total Stationery 5.085 5.174 +2% Europe: high-single digit growth Good results during Back-to-School. Market share gains in most countries. Success of our core segments such as ball pens, colorin
Slide 14: BIC Lighters in 2015: Market Share Evolution
BIC LIGHTERS IN 2015 MARKET SHARE EVOLUTION EUROPE LATIN AMERICA NORTH AMERICA ASIA BIC estimates (in value) Full Year 2015 Results Presentation 14
Slide 15: BIC Lighters in 2015
BIC LIGHTERS IN 2015 Volumes (in billion of units) Full Year 2015 2014 2015 % change Developed markets Europe: mid-single digit growth 1.431 1.497 +5% Good performance in Northern and Western regions. Very dynamic trends in Eastern Europe (distribution gains). Solid performance of Classic products a
Slide 16: Shaver Market Evolution
SHAVER MARKET EVOLUTION % change vs YAG – value Western Europe USA 2.3% -0.5% -0.2% -1.7% -1.1% -1.8% -2.0% -1.9% -3.7% -5.0% -3.2% -4.6% 2014 YTD Oct. 2015 2014 2015 Total One Piece Refillable Source: USA: IRI MULO – YTD December 2014 & 2015 Europe: Nielsen – YTD October 2015 (France, Spain, Italy,
Slide 17: BIC Shavers in 2015: Market Share Evolution
BIC SHAVERS IN 2015 MARKET SHARE EVOLUTION WESTERN LATIN EUROPE AMERICA EASTERN EUROPE NORTH AMERICA BIC estimates Full Year 2015 Results Presentation 17
Slide 18: BIC Shavers in 2015
BIC SHAVERS IN 2015 Volumes (in billion of units) Full Year 2015 2014 2015 % change Developed markets Europe: high-single digit growth 2.561 2.583 +1% Solid trends both in Western and Eastern regions. Success of our triple blades products. North America: double digit growth Net Sales (in million eur
Slide 19: BIC Other Products in 2015
BIC OTHER PRODUCTS IN 2015 Net sales (in million euros) % change on a 2014 2015 comparative basis* Good performance of BIC Sport (46% of Other consumer products 65.1 67.6 +3.9% category): +5.0% on a comparative basis • Success of the Stand-Up-Paddle boards Net sales growth on a comparative basis* 8.
Slide 20: Q4 2015 Consumer Categories Normalized IFO Margin
BIC IN 2015 Q4 2015 CONSUMER CATEGORIES NORMALIZED* IFO MARGIN Stationery Lighters Shavers 35.3% 33.7% 16.2% 16.5% 9.3% 2.0% Q4 2014 Q4 2015 Q4 2014 Q4 2015 Q4 2014 Q4 2015 • Net sales growth. • Higher production costs. • Higher advertising • Despite an acceleration • Strong increased brand and oper
Slide 21: FY 2015 Consumer Categories Normalized IFO Margin
BIC IN 2015 FY 2015 CONSUMER CATEGORIES NORMALIZED* IFO MARGIN Stationery Lighters Shavers 37.7% 38.2% 17.8% 18.5% 12.5% 11.5% FY 2014 FY 2015 FY 2014 FY 2015 FY 2014 FY 2015 • Net Sales growth. • Higher manufacturing • Sales growth. • Positive FX impact costs. • Q2 2015 price increase on Gross Prof
Slide 22: Promotional Products Industry: 2015 U.S. Market Dynamics
PROMOTIONAL PRODUCTS INDUSTRY 2015 U.S. MARKET DYNAMICS 2015 U.S. market evolution by product segments Total market up 3.4% Apparel Writing +5.0% 27% Instruments +4.0% 10% 3% Calendars -3.0% Hard Goods +3.0% 60% Sources: BIC estimates based on PPAI and ASI estimates Full Year 2015 Results Presentati
Slide 23: BIC Graphic in 2015
BIC GRAPHIC IN 2015 Net sales (in million euros) Full Year 2015 % change on a Developed Markets 2014 2015 comparative basis* Europe Northern countries: continued signs of recovery. 275.6 319.3 +1.6% Southern countries: start to improve. Better service offer (additional customers). Net sales growth o
Slide 24: 2015: financial results
2015: financial results Full Year 2015 Results Presentation
Slide 25: 2015: From Net Sales to IFO
2015: FROM NET SALES TO IFO BIC Group Change on a In million euros 2014 2015 Change comparative basis* Net Sales 1,979.1 2,241.7 +13.3% +6.2% Gross Profit 971.1 1,113.0 +14.6% Normalized* IFO 370.0 432.0 +16.7% Income 369.3 439.9 +19.1% from Operations * See glossary Full Year 2015 Results Presentat
Slide 26: Q4 2015 Net Sales Evolution
Q4 2015 NET SALES EVOLUTION In million euros FX translation impact +7.3% +2.0% -0.4% 559.4 513.8 +10 M€ USD: +€33M INR: +€1M BRL: -€18M MXN: -€2M RUB & UAH: -€2M Q4 2014 Net Sales Change on comparative FX translation impact Perimeter Impact Q4 2015 Net Sales basis (Sheaffer) Full Year 2015 Results P
Slide 27: FY 2015 Net Sales Evolution
FY 2015 NET SALES EVOLUTION In million euros FX translation impact +7.7% -0.6% 2,241.7 +6.2% 1,979.1 +152 M€ USD: +€172M INR: +€10M MXN: +€1M BRL: -€34M RUB & UAH: -€9M FY 2014 Net Sales Change on comparative FX translation impact Perimeter Impact FY 2015 Net Sales basis (Sheaffer) Full Year 2015 Re
Slide 28: Q4 2015 Normalized Income from Operations Margin
Q4 2015 NORMALIZED* INCOME FROM OPERATIONS MARGIN 17.6% -0.7 -1.0 -0.1 15.8% Q4 2014 Normalized IFO Gross Profit Margin Brand support OPEX and other expenses Q4 2015 Normalized IFO margin margin * See glossary Full Year 2015 Results Presentation 28
Slide 29: 2015 Normalized Income from Operations Margin
2015 NORMALIZED* INCOME FROM OPERATIONS MARGIN 18.7% +0.4 -0.1 +0.3 19.3% FY 2014 Normalized IFO Gross Profit Margin Brand support OPEX and other expenses FY 2015 Normalized IFO margin margin * See glossary Full Year 2015 Results Presentation 29
Slide 30: 2015: From Normalized IFO to Reported IFO
2015: FROM NORMALIZED* IFO TO REPORTED IFO BIC Group In million euros 2014 2015 Normalized* IFO 370.0 432.0 Impact of the reevaluation of intercompany accounts payable in Argentina (IAS 21) - -3.6 Impact of the revaluation of intercompany accounts payable in Venezuela in dollars at SICAD II rate (IA
Slide 31: From IFO to Group Net Income
FROM IFO TO GROUP NET INCOME In million euros Q4 2014 Q4 2015 FY 2014 FY 2015 IFO 77.9 94.2 369.3 439.9 Positive impact of favorable revaluation of financial Finance revenue/costs 8.2 8.9 11.1 26.8 assets denominated in USD during the year and higher Income before Tax 86.1 103.1 380.4 466.7 interest
Slide 32: 2015 CAPEX – Depreciation & Amortization
2015 CAPEX – DEPRECIATION & AMORTIZATION In million euros BIC 125 121 GRAPHIC 112 8% STATIONERY 107 27% 89 OTHERS 12% 90 63 77 81 75 71 72 75 53 SHAVERS 28% LIGHTERS 25% 2009 2010 2011 2012 2013 2014 2015 CAPEX Depreciation and Amortization Full Year 2015 Results Presentation 32
Slide 33: 2015 Working Capital
2015 WORKING CAPITAL BIC Group In million euros December 2014 December 2015 Total Working Capital 594.7 605.2 196.7 Stationery 190.5 101.4 Lighters 86.3 Of which inventories 441.1 478.4 101.9 2015 Shavers 88.6 Of which Trade 2014 453.8 440.0 16.1 and other receivables Other Products 18.7 62.3 BIC Gr
Slide 34: Net Cash Position
NET CASH POSITION In million euros Operations Shareholders Remuneration -161.1 -68.5 -120.7 -134.8 -26.3 +11.6 +7.3 448.0 +9.6 +14.0 320.2 +435.6 Net Cash From Operations +€367.1M December Cash from Impact of CAPEX Dividend Share buyback Exercise of Fuel Cell Real Estate Others December 2014 Net Cas
Slide 35: 2016: increased investments to support growth
2016 increased investments to support mid and long term profitable growth Full Year 2015 Results Presentation
Slide 36: 5 Years of Robust Operational Performance
2011 – 2015 5 YEARS OF ROBUST OPERATIONAL PERFORMANCE 5 years Average Annual Organic 5 years Average Normalized Income 5 years Average Annual Free Cash Flow Growth*: +4.1% From Operation margin: 18.6% Generation*: 172.2 million Euros +6.2% 19.1% 19.3% 18.3% 18.7% 17.8% 194.4 203.6 +4.9% 186.7 167.5
Slide 37: 2016 Outlook
2016 OUTLOOK Continue to deliver solid sales growth Increase investments in Brand Support and Research & Development Accelerate Development CAPEX Full Year 2015 Results Presentation 37
Slide 38: Stationery in 2016
STATIONERY IN 2016 New Products as % of Sales Leverage Champion Brands 25% Focus on improving operations and building capacity 23% to sustain growth in India (Cello Pens) 2010 2015 Champion Brands as % of Sales 45% 36% 2010 2015 Full Year 2015 Results Presentation 38
Slide 39: Lighters in 2016
LIGHTERS IN 2016 BIC® Lighters Net Sales Growth Continue to rely on our safety and best quality added-value lighters to gain distribution, notably Europe and Developing Sleeves CAGR: +10.8% Markets Leverage the added-value sleeve design • New special edition introduction • Marketing campaigns Total
Slide 40: Shavers in 2016
SHAVERS IN 2016 % of Value-added Products in total sales Launch of 2016 new products North America BIC® Soleil Shine™: BIC’s best technology, specifically designed to make 49% 61% the shaving experience better and continue trading up women one-piece users BIC® Hybrid Comfort 3™ (12 pack version): BI
Slide 41: BIC Graphic in 2016
BIC GRAPHIC IN 2016 Considering the recent evolution of the Promotional Products Industry’s environment, the Board has decided to initiate a review of strategic alternatives for BIC Graphic - Conclusions expected end of 2016 Full Year 2015 Results Presentation 41
Slide 42: Increase Investments in Brand Support and R&D
2016 - INCREASE INVESTMENTS IN BRAND SUPPORT AND RESEARCH & DEVELOPMENT Brand Support to Research and Development in Accompany New Product launches Product quality and performance Reinforce positions in developing New technologies and new markets added-value products Improve in-store visibility Stre
Slide 43: Accelerate Development CAPEX
ACCELERATE DEVELOPMENT CAPEX Development* CAPEX 54% 60% 48% 47% 50% 41% 41% 38% 2016: 68 40% 28% 26% 30% 52 53 50 close to 60% 16% 20% 36 10% 22 22 24 0% -10% of total CAPEX 8 -20% 2007 2008 2009 2010 2011 2012 2013 2014 2015 Development* Capex in million euros Development* Capex as % of total Capex
Slide 44: CAPEX in 2016: Main Projects
CAPEX IN 2016 MAIN PROJECTS Stationery Lighters Shavers Samer (FR) • Marne-La-Vallée (FR) Redon (FR) • Milford (USA) Manaus (BR) • Saltillo (MEX) Cello Pens (IN) Tarragona (SP) Athens (GR) New buildings/ Additional capacities Additional Molds Land Extended R&D centers machines Tooling Full Year 2015
Slide 45: 2016 Outlook: A Year of Investments
2016 OUTLOOK A YEAR OF INVESTMENTS… Mid-single digit increase 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
Slide 46: 2016 Outlook: Long-Term Strategic Priorities
2016 OUTLOOK … AIMED AT FUELING LONG-TERM STRATEGIC PRIORITIES Continue to create long-term value Grow Normalized Income From Maintain strong cash generation to: by outperforming our markets Operations through increased Continue to grow the business and growing sales organically productivity as we i
Slide 47: Appendix
Appendix Full Year 2015 Results Presentation
Slide 48: 2015 Net Sales: Main Exchange Rate Evolution vs. Euro
2015 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average Average Average Average rate rate % of rate rate % of % of sales Q4 2014 Q4 2015 change % of sales 2014 2015 change US Dollar 47% 1.25 1.09 14.7% US Dollar 46% 1.33 1.11 19.8% Brazilian Real 10% 3.18 4.22 -24.6% Brazilian Real 8% 3.12 3.68
Slide 49: 2015 Group Net Sales Evolution by Geography
2015 GROUP NET SALES EVOLUTION BY GEOGRAPHY Change on a comparative basis* Q1 15 Q2 15 Q3 15 Q4 15 2015 Europe North America Developing Markets + 9.0%+ 8.9% + 8.1% + 8.0% + 7.8% + 7.3% + 6.8% + 5.7% + 5.5% + 5.3% + 5.2% + 5.0% + 4.9% + 3.5% + 2.9% * See glossary Full Year 2015 Results Presentation 4
Slide 50: 2015 Net Sales Breakdown by Category
2015 NET SALES BREAKDOWN BY CATEGORY 14% 33% BIC GRAPHIC STATIONERY 3% OTHER CONSUMER PRODUCTS 20% SHAVERS 30% LIGHTERS Full Year 2015 Results Presentation 50
Slide 51: 2015 Net Sales Breakdown by Geography
2015 NET SALES BREAKDOWN BY GEOGRAPHY 30% 24% DEVELOPING MARKETS EUROPE 46% NORTH AMERICA Full Year 2015 Results Presentation 51
Slide 52: 2015: From IFO to Group Net Income
2015: FROM IFO TO GROUP NET INCOME BIC Group In million euros 2014 2015 Normalized* IFO 370.0 432.0 Non recurring items -0.7 +7.9 IFO 369.3 439.9 Interest income 10.5 14.2 Finance costs 0.6 12.6 Income before Tax 380.4 466.7 Income tax 114.2 140.2 Tax rate 30.0% 30.0% Income from associates - - Grou
Slide 53: Group Quarterly Figures
GROUP QUARTERLY FIGURES In million euros FY 12 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 Net Sales 1,898.7 428.6 508.9 470.4 479.9 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 YoY actual changes +4.1% -3.7% +1.6% -3.8% +3.4%
Slide 54: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY In million euros FY 12 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 Europe 484.5 109.6 154 119.9 110.2 493.8 111.4 153.7 130.2 113.9 509.1 117.6 160.0 131.4 118.9 527.8 Net Sales YoY actual changes -6.4% -1.7% 7.2% -0.
Slide 55: Group Consumer
GROUP CONSUMER In million euros FY 12 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 Net Sales 1,607.6 375.7 446.8 401.0 396.5 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 YoY actual changes +5.6% -2.4% +3.0% -3.1% +5.7% +0.8% +1.
Slide 56: Stationery
STATIONERY In million euros FY 12 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 Net Sales 617.9 129.7 188.2 150.5 148 616.4 144 212 169.2 151.7 676.9 157.1 233.2 184.3 152.4 727.0 YoY actual changes +5.0% -6.1% +0.4% -6.6% +12.9% -0.2% +11.0% +12.6% +12.5%
Slide 57: Lighters
LIGHTERS In million euros FY 12 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 Net Sales 551.0 137.4 139.6 136.1 144.7 557.8 133.6 145.8 143.6 158.6 581.6 163.5 178.4 158.8 175.0 675.7 YoY actual changes +7.9% +0.5% +3.4% +0.4% +0.6% +1.2% -2.8% +4.4% +5.5%
Slide 58: Shavers
SHAVERS In million euros FY 12 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 Net Sales 373.5 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 YoY actual changes +13.8% -1.3% +6.0% -3.8% +4.1% +1.1% -2.7% -0.6% -0.7% +7.0% +0.
Slide 59: Other Consumer Product
OTHER CONSUMER PRODUCT In million euros FY 12 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 Net Sales 65.2 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 YoY actual changes -31.0% -2.2% +12.0% +7.2% +0.9% +4.6% -6.0% -5.8% -3.7%
Slide 60: BIC Graphic
BIC GRAPHIC In million euros FY 12 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 Net Sales 291.1 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 YoY actual changes -3.6% -11.9% -7.5% -7.1% -6.4% -8.0% -2.5% -4.4% +1.9% +12.5% +
Slide 61: Miscellaneous: Capital Evolution
MISCELLANEOUS Capital evolution As of December 31, 2015, the total number of issued shares of SOCIÉTÉ BIC is 47,942,157 shares, representing: • 69,464,111 voting rights, • 68,686,613 voting rights excluding shares without voting rights. Total treasury shares at the end of December 2015: 777,498 Full
Slide 62: Glossary
GLOSSARY At constant currencies: • Constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates Comparative basis: • At constant currencies and constant perimeter Normalized IFO: • Normalized means excluding non-recurring items as deta
Slide 63: 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 64: 2016 Agenda
2016 AGENDA 1st Quarter 2016 results 27 April 2016 Conference call 2016 AGM 18 May 2016 Meeting – BIC Headquarters 2nd Quarter and 1st Half 2016 results 4 August 2016 Conference call 3rd Quarter 2016 results 26 October 2016 Conference call All dates to be confirmed Full Year 2015 Results Presentatio