Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — Q1 2019 Earnings Presentation
31 slides from Societe Bic Sa's earnings presentation, Apr 25, 2019
Slide 1: First Quarter 2019 Results
FIRST QUARTER 2019 RESULTS April 25th, 2019
Slide 2: Highlights & Category Spotlights
HIGHLIGHTS & CATEGORY SPOTLIGHTS Gonzalve Bich
Slide 3: Key Takeaways
KEY TAKEAWAYS BIC 2022- Maintaining or Invent the growing share in Future a challenging plan on track Targeted Brand trading Support 2019 Outlook environment Investments confirmed Q1 2019 Results Presentation 3
Slide 4: Q1 2019 Group Financial Performance
Q1 2019 GROUP FINANCIAL PERFORMANCE NET SALES NORMALIZED IFO NORMALIZED EPS NET CASH POSITION Change on Margin a comparative basis 415.4 M€ 54.6 M€ 0.89 € 135.0M€ -2.0% 13.1% Q1 2019 Results Presentation 4
Slide 5: Q1 2019 Category Spotlights
Q1 2019 Category Spotlights Stationery Lighters Shavers Net Sales Net Sales Net Sales Q1 148.3 M€ - 5.8 %* Q1 149.7 M€ - 5.5 %* Q1 109.0 M€ + 10.0 %* NIFO Margin NIFO Margin NIFO Margin Q1 1.8 M€ 1.2 % Q1 46.6 M€ 31.1 % Q1 7.7 M€ 7.1 % • Continued growth in e-commerce in Europe • Soft performance in
Slide 6: Consolidated Results
CONSOLIDATED RESULTS Jim DiPietro
Slide 7: Net Sales Evolution
Q1 2019 NET SALES EVOLUTION Change in Change on Change FX impact Perimeter Argentina impact a comparative In million euros Q1 2018 Q1 2019 as reported (in points) (in points) (in points) basis* Net Sales 415.4 415.4 0.0% +2.6 (0.4) (0.2) (2.0)% +10.9 M€: BIC Sport In M€ Divestiture USD +12.4 BRL -2.
Slide 8: From Net Sales to IFO
Q1 2019 FROM NET SALES TO IFO Change on Change a comparative In million euros Q1 2018 Q1 2019 as reported basis Net Sales 415.4 415.4 0.0% (2.0)% Gross Profit 223.5 211.3 Normalized Income 69.6 54.6 from Operations Income from 69.6 54.6 Operations Q1 2019 Results Presentation 8
Slide 9: Key Components of Normalized IFO Margin
Q1 2019 KEY COMPONENTS OF NORMALIZED* INCOME FROM OPERATIONS MARGIN -2.9% -1.4% +0.7% 16.7% 13.1% Q1 2018 Normalized* IFO margin Change in cost of production Total brand support OPEX and other expenses Q1 2019 Normalized* IFO margin (*) See glossary Q1 2019 Results Presentation 9
Slide 10: From NIFO to Group Net Income
Q1 2019 FROM NIFO TO GROUP NET INCOME In million euros Q1 2018 Q1 2019 Normalized* IFO 69.6 54.6 IFO 69.6 54.6 Finance revenue/costs (2.0) +0.8 Income before Tax 67.6 55.4 Income tax expense (19.0) (16.1) Effective tax rate 28.1% 29.0% Net Income Group share 48.6 39.3 Normalized EPS Group Share 1.06
Slide 11: Working Capital
WORKING CAPITAL In million euros December 2018 March 2019 Total Working Capital 621.2 674.6 Of which inventories 449.2 508.7 Of which Trade 534.7 509.4 and other receivables Of which Trade (137.7) (131.9) and other payables INVENTORIES IN DAYS RECEIVABLES IN DAYS 224 224 80 71 67 178 March 2018 Dece
Slide 12: Net Cash Position
NET CASH POSITION In million euros Operations +62.9 -32.7 -20.1 -33.1 -1.8 -1.7 161.5 Net Cash 135.0 From Operating activities +30.2 M€ December 2018 Net Operating cash flow Change in working CAPEX Share buyback Haco industries Others March 2019 Net Cash Cash Position capital and others acquisition
Slide 13: Looking Ahead
LOOKING AHEAD Gonzalve Bich — \aic’
Slide 14: Progress on BIC-2022 Invent the Future Plan
PROGRESS ON BIC-2022 INVENT THE FUTURE PLAN Effectiveness Innovation Global Strategic Procurement BodyMark Temporary Tattoo Marker organization up and running BIC® Intensity Medium Felt-Pen Health, Safety & Environment BIC® Soleil® Click 5 processes centralized Consumer-centric Omnichannel Distribut
Slide 15: 2019 Outlook
2019 OUTLOOK NET SALES NORMALIZED IFO MARGIN We expect Group Net Sales We expect Normalized IFO margins to increase slightly to be between 16.5% and 18% on a comparative basis Q1 2019 Results Presentation 15
Slide 16: First Quarter 2019 Results Presentation
FIRST QUARTER 2019 RESULTS PRESENTATION 25 APRIL 2019
Slide 17: Appendix
APPENDIX — \aic’
Slide 18: Net Sales by Geography
Q1 2019 NET SALES BY GEOGRAPHY Q1 Net Sales - 2.0% on a comparative basis EUROPE 2.4% NORTH AMERICA -2.2% DEVELOPING MARKETS -5.8% Q1 2019 Results Presentation 18
Slide 19: Q1 2019 Net Sales Breakdown
Q1 2019 NET SALES BREAKDOWN BY CATEGORY BY GEOGRAPHY 2% Other products 30% 26% 36% 31% Europe Shavers Stationery Developing markets 36% Lighters 39% North America Q1 2019 Results Presentation 19
Slide 20: Stationery Market Performances and BIC's Market Share
STATIONERY MARKET PERFORMANCES AND BIC’S MARKET SHARE Europe market U.S. market Dec 2018 Feb 2019 YTD 0.2% BIC market BIC market share share -0.2 pts +0.0 pts 0.0% -1.2% Dec 2018 Mar 2019 YTD -1.6% In Value Source: EU7 GFK FEB-2019 - 60% coverage (France, UK, Germany, Italy, Spain, Belgium, Greece /
Slide 21: US Market Performances and BIC's Market Share (Shavers)
SHAVERS US Market Performances and BIC’s Market Share Off-line Market Sales Q1 2019 (YTD in value) BIC’s Market Share Change - One Piece Segment (YTD in value) 2.2% 3.0 2.6 2.2 1.9 1.9 2.0 1.2 1.4 0.7 0.9 0.9 1.0 -1.6% -1.6% -2.3% -2.2% -3.1% -2.8% -3.1% -3.0% -2.9% 0.0 -4.0% -3.8% -3.8% -4.1% -4.1%
Slide 22: Main Exchange Rate Evolution vs. Euro
Q1 2019 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO Average rates % of sales Q1 2018 Q1 2019 % of change US Dollar 39% 1.23 1.14 +8.3% Brazilian Real 8% 3.99 4.28 -6.6% Mexican Peso 6% 23.03 21.80 +5.6% Argentina Peso 2% 24.28 44.45 -45.4% Canadian dollar 3% 1.56 1.51 +3.1% Australian dollar 2%
Slide 23: Group Quarterly Figures
GROUP QUARTERLY FIGURES Restated for Restated for IFRS 15 IAS 29 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 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 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
Slide 24: Group Quarterly Figures by Geography
GROUP QUARTERLY FIGURES BY GEOGRAPHY Restated for Restated for IFRS 15 IAS 29 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 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 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
Slide 25: Stationery
STATIONERY Restated for IFRS 15 Restated for IAS 29 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 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 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
Slide 26: Lighters
LIGHTERS Restated Restated for IFRS 15 for IAS 29 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 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 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 1
Slide 27: Shavers
SHAVERS Restated for Restated for IFRS 15 IAS 29 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 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 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 97.0 113
Slide 28: 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 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 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 15.9 11.1 13.2 54.0 8.3 YoY act
Slide 29: Capital and Voting Rights
CAPITAL AND VOTING RIGHTS As of March 31, 2019, the total number of issued shares of SOCIÉTÉ BIC is 46,010,907 shares, representing: • 67,361,767 voting rights • 66,413,250 voting rights excluding shares without voting rights Total number of treasury shares held at the end of March 2019: 948,517 Q1
Slide 30: Glossary
GLOSSARY Constant currency basis Constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates. Organic change At constant currencies and constant perimeter. Figures at constant perimeter exclude or Comparative basis the impacts of acqu
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