Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — Q1 2017 Earnings Presentation
33 slides from Societe Bic Sa's earnings presentation, Apr 26, 2017
Slide 1: Q1 2017 Results Presentation
Q1 2017 Results Presentation 26 April 2017 BIC Graphic North America and the Asia sourcing operations accounted for and presented in accordance with IFRS 5. BIC Graphic is no longer considered as a separate category or reporting segment. The activities of BIC Graphic Europe and Developing Markets ar
Slide 2: Group highlights
Group highlights Bruno Bich
Slide 3: Group Q1 2017 Key Figures
GROUP Q1 2017 KEY FIGURES Net Sales: 469.2 million euros +2.4% EUROPE +0.0% -9.2% NORTH AMERICA -4.1% DEVELOPING As reported Constant -3.4% MARKETS currency basis* Normalized* Income from Operations: 81.3 million euros 17.3% 17.3% 19.2% Q1 2016 NIFO margin Q1 2016 NIFO margin Q1 2017 NIFO margin exc
Slide 4: Group Q1 2017 Key Figures
GROUP Q1 2017 KEY FIGURES EPS (Group share): -1.9% Net Cash Position In euros In million euros 1.08 1.06 387.1 222.2 206.2 Q1 2016 Q1 2017 March 2016 December 2016 March 2017 4
Slide 5: Category highlights
Category highlights Gonzalve Bich
Slide 6: BIC Stationery in Q1 2017
BIC STATIONERY IN Q1 2017 Net Sales growth on a Normalized* IFO margin Q1 2017 Net Sales constant currency basis* €163.4M 8.0% 5.2% 7.3% 3.6% Q1 2017 NIFO €5.9M -5.1% 2016 2017 2016 excl. special bonus NET SALES Europe North America Developing markets Low-single-digit increase Double-digits decrease
Slide 7: BIC Lighters in Q1 2017
BIC LIGHTERS IN Q1 2017 Net Sales growth on a Normalized* IFO margin Q1 2017 Net Sales constant currency basis* 38.0% €171.3M 5.4% 39.5% 37.4% Q1 2017 NIFO €64.1M -0.5% 2016 2017 2016 excl. special bonus NET SALES Europe North America Developing markets Mid-single-digit growth Low-single-digit decli
Slide 8: Shaver Market in the U.S.
SHAVER MARKET IN THE U.S. YTD March 2016 YTD December 2016 YTD March 2017 Total -2.3% Refillable -4.2% -4.0% -5.0% -5.5% One-piece -6.3% -7.4% -9.2% -10.5% Source: CMR USA MULO (IRI) – % change in value – YTD March 2016, YTD December 2016, YTD March 2017 8
Slide 9: BIC Shavers in Q1 2017
BIC SHAVERS IN Q1 2017 Net Sales growth on a Normalized* IFO margin Q1 2017 Net Sales constant currency basis* €114.4M 10.9% 10.7% 12.9% 12.6% Q1 2017 NIFO €14.4M -7.7% 2016 2017 2016 excl. special NET SALES bonus Europe North America Developing markets Low-single-digit growth Double-digit decline S
Slide 10: Q1 2017 – Consolidated Results
Q1 2017 – Consolidated Results Jim DiPietro
Slide 11: Q1 2017: From Net Sales to Normalized IFO
Q1 2017: FROM NET SALES TO NORMALIZED IFO Change on a constant BIC Group Change as currency In million euros 2016 2017 reported basis* Net Sales 469.3 469.2 +0.0% -4.1% Gross Profit 236.8 245.7 +3.8% Normalized* IFO 81.4 81.3 -0.1% Income from Operations 81.4 74.3 -8.8% *See glossary 11
Slide 12: Q1 2017 Net Sales Evolution
Q1 2017 NET SALES EVOLUTION In million euros FX translation impact 469.3 -4.1% +4.1% 469.2 +19 M€ BRL: +10 M€ USD: +6 M€ ZAR: +2 M€ RUB UAH: +2 M€ MXN: -2 M€ Others: +1 M€ Q1 2016 Net Sales Change on a constant currency FX translation impact Q1 2017 Net Sales basis 12
Slide 13: Key Components of Q1 2017 Normalized Income from Operations Margin
KEY COMPONENTS OF Q1 2017 NORMALIZED* INCOME FROM OPERATIONS MARGIN 19.2% +0.8 -0.8 +1.9 -1.9 17.3% 17.3% • Promotions and • Impact on Gross Profit: +1.2 investments related to • Impact in OPEX : +0.7 consumer and business development support accounted for in Gross Profit Margin : -0.1 • Advertising
Slide 14: Q1 2017 From IFO to Group Net Income
Q1 2017 FROM IFO TO GROUP NET INCOME In million euros Q1 2016 Q1 2017 Unfavorable Q1 IFO 81.4 74.3 2016 fair value adjustments to Finance revenue/costs -2.0 0.7 financial assets denominated in Income before Tax 79.4 75.0 USD compared to December 2015. Income tax 23.9 22.5 Effective tax rate 30.0% 30
Slide 15: Net Cash Position
NET CASH POSITION In million euros Operations 222.2 -55.2 206.2 +81.1 -31.5 -9.2 -1.2 Net Cash From Operating activities +25.9 M€ December 2016 Net Operating cash flow Change in working CAPEX Share buyback, exercise Others March 2017 Net Cash Cash Position capital and others of stock options and Pos
Slide 16: Full year 2017 outlook
Full year 2017 outlook Bruno Bich
Slide 17: Group Q1 2017 Summary
GROUP Q1 2017 SUMMARY Weakness of U.S. Stationery and Shaver markets impacting quarterly Net Sales Solid back-to-school in Brazil Net sales Good performance in Eastern Europe for Lighters Strengthened n°1 position in the 5-blades disposable shaver segment Decline in Normalized IFO margin Normalized
Slide 18: 2017 Group Outlook
2017 GROUP OUTLOOK Full Year 2017 organic Net Sales should grow mid-single digit. To enhance long-term growth, we plan another year of selected investments in R&D, CAPEX and Brand Support. The total impact of these investments on Normalized Income From Operations margin will be approximately -100 ba
Slide 19: Appendix
Appendix
Slide 20: Q1 2017 Net Sales: Main Exchange Rate Evolution vs. Euro
Q1 2017 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average Average rate rate % of sales Q1 2016 Q1 2017 % of change US Dollar 37% 1.10 1.06 3.5% Brazilian Real 10% 4.29 3.34 22.0% Mexican Peso 5% 19.90 21.53 ‐8.2% Argentina 2% 16.05 16.69 ‐4.0% Canadian dollar 3% 1.51 1.41 6.6% Australian dolla
Slide 21: Q1 2017 Net Sales Breakdown by Category
Q1 2017 NET SALES BREAKDOWN BY CATEGORY OTHER PRODUCTS 4% 35% STATIONERY SHAVERS 24% 37% LIGHTERS 21
Slide 22: Q1 2017 Net Sales Breakdown by Geography
Q1 2017 NET SALES BREAKDOWN BY GEOGRAPHY 34% 28% DEVELOPING MARKETS EUROPE 38% NORTH AMERICA 22
Slide 23: Group Quarterly Figures
GROUP QUARTERLY FIGURES Including BIC Graphic North America and Asia sourcing Excluding BIC Graphic North America and Asia sourcing In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Net Sales 510.8 623.1 548.3 559.4 2,241.7 469.3 562.2 490.5 503.8 2025.8 469.2 YoY ac
Slide 24: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY In million euros Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Europe 126.6 170.1 131.4 116.8 544.8 129.5 Net Sales YoY actual changes +7.6% +6.3% +0.0% ‐1.7% +3.2% +2.3% YoY changes on a constant currencies basis* +9.2% +8.6% +2.5% ‐0.1% +5.3% +2.4% North America 188.0 23
Slide 25: Stationery
STATIONERY Including BIC Graphic Europe and Developing markets Stationery products In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Net Sales 157.1 233.2 184.3 152.4 727.0 167.1 241.1 193.9 178.2 780.3 163.4 YoY actual changes +9.1% +10.0% +8.9% +0.5% +7.4% ‐0.4% ‐1
Slide 26: Lighters
LIGHTERS In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Net Sales 163.5 178.4 158.8 175.0 675.7 163.6 177.2 167.6 187.9 696.4 171.3 YoY actual changes +22.3% +22.4% +10.6% +10.3% +16.2% +0.1% ‐0.7% +5.6% +7.4% +3.1% +4.7% YoY changes on a comparative basis* +9.7%
Slide 27: Shavers
SHAVERS In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Net Sales 112.4 117.8 113.0 108.8 452.0 117.8 120.1 111.8 117.3 467.0 114.4 YoY actual changes +26.5% +20.0% +15.4% +14.5% +18.9% +4.8% +2.0% ‐1.1% +7.8% +3.3% ‐2.9% YoY changes on a comparative basis* +14.7%
Slide 28: Other Products
OTHER PRODUCTS Including BIC Graphic Europe and Developing markets other products In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Net Sales 16.8 22.3 13.9 14.6 67.6 20.8 23.8 17.2 20.3 82.1 20.1 YoY actual changes +4.1% +16.8% ‐8.9% +0.2% +3.9% ‐14.0% ‐14.8% ‐9.5%
Slide 29: Miscellaneous
MISCELLANEOUS Capital evolution: As of March 31, 2017, the total number of issued shares of SOCIÉTÉ BIC was 47,570,106 shares, representing: • 69,181,960 voting rights, • 68,319,562 voting rights excluding shares without voting rights. Total treasury shares at the end of March 2017: 862,398. 29
Slide 30: Glossary - Miscellaneous
GLOSSARY - MISCELLANEOUS On February 7, 2017, BIC Group announced the status of the strategic alternatives review initiated in February 2016 for BIC Graphic. The Group mentioned that discussions regarding BIC Graphic North America and the Asia sourcing operations were still ongoing. Consequently, as
Slide 31: 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 32: 2017 Agenda
2017 AGENDA 2016 AGM 10 May 2017 Meeting – BIC Headquarters Second quarter 2017 results 03 August 2017 Conference call Third quarter 2017 results 25 October 2017 Conference call All dates to be confirmed 32
Slide 33: Slide 33