Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — 9M 2017 Earnings Presentation
38 slides from Societe Bic Sa's earnings presentation, Oct 25, 2017
Slide 1: Q3-9M 2017 Results Presentation
Q3-9M 2017 Results Presentation 25 October 2017 Third quarter and Nine months 2016 and 2017 results are accounted for and presented in accordance with IFRS 5; BIC Graphic is no longer considered as a separate category or reporting segment. BIC Graphic Europe reports to European BIC Consumer Product
Slide 2: Group and category highlights
Group and category highlights
Slide 3: Group 9M 2017 Key Figures
GROUP 9M 2017 KEY FIGURES Net Sales: 1,528.7 million euros +0.4% +4.5% EUROPE -0.7% -0.1% -3.9% NORTH AMERICA As reported Constant comparative DEVELOPING currency basis** +0.8% MARKETS basis* Normalized* Income from Operations: 302.9 million euros 20.4% 21.0% 19.8% 9M 2016 NIFO margin 9M 2016 NIFO m
Slide 4: Group 9M 2017 Key Figures
GROUP 9M 2017 KEY FIGURES EPS (Group share): -11.6% Net Cash Position In euros In million euros 222.2 4.55 208.1 4.02 181.6 9M 2016 9M 2017 September 16 Dec. 16 September 17 4
Slide 5: Category highlights
Category highlights Gonzalve Bich
Slide 6: Stationery Market Evolution
STATIONERY MARKET EVOLUTION % change vs YAG – value USA September 2017 E-commerce 8% Office supply Food & Drug** 8% 25% Brick & Mortar* 60% +19.8% -1.4% -1.4% -0.3% -4.4% E-commerce Food & Drug** Brick & Mortar* Office supply Total Sources: US = NPD/IRI year-to-date ending September 2017 * Brick & M
Slide 7: BIC Stationery in 9M 2017
BIC STATIONERY IN 9M 2017 Net Sales growth on a comparative basis* Normalized* IFO margin 9M 2017 Net Sales 18.0% 16.0% €619.4M +8.0% +9.1% +2.6% +4.5% 7.3% 4.0% 10.5% 9.9% 8.9% +4.0% +3.1% 5.2% +2.2% 3.6% 3.6% 9M 2017 NIFO €55.1M -5.1% Q1 Q2 Q3 9M Q1 Q2 Q3 9M 2016 excl. 2016 special bonus 2017 9M N
Slide 8: BIC Lighters in 9M 2017
BIC LIGHTERS IN 9M 2017 Net Sales growth on a comparative basis* Normalized* IFO margin 9M 2017 Net Sales 39.5% 40.9% 40.6% 41.7% €514.8M +5.4% +5.4% +6.5% +5.7% 38.0% 37.4% 40.5% 41.7% 40.1% 40.0% +2.0% 9M 2017 NIFO 0.0% €206.0M -0.5% -1.7% Q1 Q2 Q3 9M Q1 Q2 Q3 9M 2016 excl. 2016 special bonus 2017
Slide 9: Shaver Market in the U.S.
SHAVER MARKET IN THE U.S. YTD September 2016 FY 2016 YTD September 2017 -3.7% -4.0% -3.8% -4.6% -5.0% -5.8% -6.3% Total -8.9% Refillable -12.4% One-piece Source: CMR USA MULO (IRI) – % change in value – YTD September 2016 , YTD December 2016 and YTD September 2017 9
Slide 10: Shaver Market and BIC Market Share in the U.S. by Quarter
SHAVER MARKET AND BIC MARKET SHARE IN THE U.S. BY QUARTER Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 3.0 2.6 2.6 2.2 2.0 1.9 1.9 1.4 1.2 1.0 0.0 -1.0 -0.5 -0.4 -2.0 -1.5 -1.5 -1.5 -2.1 -3.0 -2.6 BIC Market Share change - YTD BIC Market Share change - 13 weeks Source: CMR USA MULO (IRI)
Slide 11: BIC Shavers in 9M 2017
BIC SHAVERS IN 9M 2017 Net Sales growth on a constant currency basis* Normalized* IFO margin 9M 2017 Net Sales 19.8% 15.4% €339.3M +10.9% +9.0% +7.1% 12.9% 10.7% 12.6% 13.8% 14.1% 13.8% 14.7% 13.5% +1.4% 9M 2017 NIFO -0.9% €45.8M -7.7% -5.1% -4.5% Q1 Q2 Q3 9M Q1 Q2 Q3 9M 2016 excl. 2016 special bonu
Slide 12: 9M 2017 – Consolidated Results
9M 2017 – Consolidated Results Jim DiPietro
Slide 13: 9M 2017: From Net Sales to Normalized IFO
9M 2017: FROM NET SALES TO NORMALIZED IFO Change on a BIC Group Change as comparative In million euros 9M 2016 9M 2017 reported basis* Net Sales 1,522.0 1,528.7 +0.4% -0.1% Gross Profit 792.4 785.4 -0.9% Normalized* IFO 311.0 302.9 -2.6% Income 305.5 278.2 -8.9% from Operations *See glossary 13
Slide 14: Q3 2017 Net Sales Evolution
Q3 2017 NET SALES EVOLUTION In million euros FX translation impact BRL: -1 M€ USD: -9M€ ARS: -1 M€ GBP : -1 M€ Others: -2 M€ -14 M€ -1.3% -0.9% -2.2% -2.8% -5.0% Change on a comparative Perimeter impact Change on a constant FX translation impact Change as reported basis currency basis 14
Slide 15: 9M 2017 Net Sales Evolution
9M 2017 NET SALES EVOLUTION In million euros FX translation impact +17 M€ BRL: +14 M€ USD: +2 M€ ZAR: +3 M€ RUB UAH: +3 M€ MXN: -2 M€ GBP : -3 M€ INR : +2 M€ ARS: -2 M€ +0.4% +1.1% -0.1% -0.6% -0.7% Change on a comparative Perimeter impact Change on a constant FX translation impact Change as reporte
Slide 16: Key Components of Q3 2017 Normalized Income from Operations Margin
KEY COMPONENTS OF Q3 2017 NORMALIZED* INCOME FROM OPERATIONS MARGIN 19.9% -1.9 -0.7 +0.6 17.9% • Promotions and investments related to consumer and business development support accounted for in Gross Profit Margin : -1.3 • Advertising, consumer and trade support : +0.6 Q3 2016 Normalized* IFO margin
Slide 17: Key Components of 9M 2017 Normalized Income from Operations Margin
KEY COMPONENTS OF 9M 2017 NORMALIZED* INCOME FROM OPERATIONS MARGIN +0.6 21.0% -0.5 -0.2 -0.5 20.4% 19.8% • Promotions and • Impact on Gross Profit: +0.4 investments related to • Impact in OPEX : +0.2 consumer and business development support accounted for in Gross Profit Margin : -0.6 • Advertising
Slide 18: 9M 2017 From IFO to Group Net Income
9M 2017 FROM IFO TO GROUP NET INCOME In million euros 9M 2016 9M 2017 IFO 305.5 278.2 Finance revenue/costs 1.7 -0.8 Income before Tax 307.3 277.4 Income tax 92.3 83.3 Effective tax rate 30.0% 30.0% Net Income From Continuing Operations 215.0 194.1 Net Income From Discontinued -1.3 -6.7 Operations*
Slide 19: Balance Sheet
BALANCE SHEET BIC Group December September In million euros 2016 2017 Total Working Capital 642.2 607.5 Of which inventories 468.1 445.5 Of which Trade 483.1 495.7 and other receivables Of which Trade 118.7 120.1 and other payables Inventories in days Receivables in days 181 73 164 166 69 66 Septemb
Slide 20: Net Cash Position
NET CASH POSITION In million euros Operations +275.4 -3.3 -133.2 -161.0 222.2 -21.2 -53.0 55.7 181.6 Net Cash From Operating activities +272.1 M€ December 2016 Net Operating cash flow Change in working CAPEX Dividend payment Share buyback, Proceeds from sale of Others September 2017 Net Cash Positio
Slide 21: Full year 2017 outlook
Full year 2017 outlook Bruno Bich
Slide 22: Group 9M 2017 Summary
GROUP 9M 2017 SUMMARY Good performance in Europe across our 3 categories Unprecedent market disruption in the U.S. wet shave category Net sales Customers’ inventory reductions in U.S. Lighters Developing markets’ softness due mostly to Brazil Decline in Normalized IFO margin Normalized • Increased c
Slide 23: 2017 Group Outlook
2017 GROUP OUTLOOK Net Sales Organic Growth is expected to be slightly below 2%. At this sales growth level, 2017 Normalized Income from Operations margin decline should be less than 100 basis points. 23
Slide 24: Appendix
Appendix
Slide 25: Q3 and 9M 2017 Net Sales: Exchange Rate Evolution
Q3 AND 9M 2017 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average Average Average Average rate rate rate rate % of sales Q3 2016 Q3 2017 % of change % of sales 9M 2016 9M 2017 % of change US Dollar 38% 1.12 1.17 -4.9% US Dollar 38% 1.12 1.11 0.2% Brazilian Real 9% 3.62 3.71 -2.4% Brazilian Real
Slide 26: 9M 2017 Net Sales Breakdown by Category
9M 2017 NET SALES BREAKDOWN BY CATEGORY OTHER PRODUCTS STATIONERY 3% 41% SHAVERS 22% 34% LIGHTERS 26
Slide 27: 9M 2017 Net Sales Breakdown by Geography
9M 2017 NET SALES BREAKDOWN BY GEOGRAPHY 32% 29% DEVELOPING MARKETS EUROPE 39% NORTH AMERICA 27
Slide 28: Group Quarterly Figures
GROUP QUARTERLY FIGURES Including BIC Graphic North America and Asia sourcing Excluding BIC Graphic North America and Asia sourcing (IFRS 5) In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 Q3 16 9M 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 9M 17 Net Sales 510.8 623.2 548.3 559.4 2,241.7 469.3 562.
Slide 29: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY In million euros Q1 16 Q2 16 Q3 16 9M 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 9M 17 Europe 126.6 170.0 131.4 428.0 116.8 544.8 129.5 177.5 135.3 442.4 Net Sales YoY actual changes +7.6% +6.3% +0.0% +4.7% -1.7% +3.2% +2.3% +4.4% +2.9% +3.4% YoY changes on a comparative b
Slide 30: Stationery
STATIONERY Excluding BIC Graphic North America and Asia sourcing (IFRS 5) In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 Q3 16 9M 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 9M 17 Net Sales 157.1 233.2 184.3 152.4 727.0 167.1 241.1 193.9 602.1 178.2 780.3 163.4 264.7 191.3 619.4 YoY actual changes
Slide 31: Lighters
LIGHTERS In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 Q3 16 9M 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 9M 17 Net Sales 163.5 178.4 158.8 175.0 675.7 163.6 177.2 167.6 508.5 187.9 696.4 171.3 185.5 157.9 514.8 YoY actual changes +22.3% +22.4% +10.6% +10.3% +16.2% +0.1% -0.7% +5.6% +1.5% +7.4%
Slide 32: Shavers
SHAVERS In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 Q3 16 9M 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 9M 17 Net Sales 112.4 117.8 113.0 108.8 452.0 117.8 120.1 111.8 349.7 117.3 467.0 114.4 122.0 102.9 339.3 YoY actual changes +26.5% +20.0% +15.4% +14.5% +18.9% +4.8% +2.0% -1.1% +1.9% +7.8% +
Slide 33: Other Product
OTHER PRODUCT Excluding BIC Graphic North America and Asia sourcing (IFRS 5) In million euros Q1 15 Q2 15 Q3 15 Q4 15 FY 15 Q1 16 Q2 16 Q3 16 9M 16 Q4 16 FY 16 Q1 17 Q2 17 Q3 17 9M 17 Net Sales 16.8 22.3 13.9 14.6 67.6 20.8 23.8 17.2 61.8 20.3 82.1 20.1 21.4 13.7 55.2 YoY actual changes +4.1% +16.8%
Slide 34: Miscellaneous
MISCELLANEOUS Capital evolution: As of September 30, 2017, the total number of issued shares of SOCIÉTÉ BIC was 47,595,062 shares, representing: • 69,044,905 voting rights, • 67,739,504 voting rights excluding shares without voting rights. Total treasury shares at the end of September 2017: 1,305,40
Slide 35: Glossary - Miscellaneous
GLOSSARY - MISCELLANEOUS Third quarter and First nine months 2016 and 2017 results are accounted for and presented in accordance with IFRS 5; BIC Graphic is no longer considered as a separate category or reporting segment. BIC Graphic Europe reports to European BIC Consumer Product management. In De
Slide 36: 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 Factors” of BIC “Registration Doc
Slide 37: 2018 Agenda
2018 AGENDA Full Year 2017 results 14 February 2018 Meeting – BIC Headquarters First Quarter 2017 results 25 April 2018 Conference call 2018 AGM 16 May 2018 Meeting – BIC Headquarters First Half 2018 results 1st August 2018 Conference call All dates to be confirmed 37
Slide 38: Slide 38