Annual Shareholders meeting. Clichy 14 May 2014

Transcription

1 Annual Shareholders meeting Clichy 14 May 2014

2 «Honor the past invent the future People are the cornerstone of our philosophy» 2

3 BIC IN 2013 Good performance of Consumer categories Continued investment in our brand, new products and innovation and Manufacturing Capacities Strong cash generation Majority stake in Cello Pens 3

4 BIC IN 2013 Net Sales* Chiffre d affaires Consumer Business +5.2% +3.6% 18.2% Normalized Marge IFO margin d exploitation Normalisée EPS Group Bénéfice Share Net Par Action M Net Position cash position nette de trésorerie * Change on a comparative basis 4

5 BIC IN 2013 Ordinary dividend of 2.60 euros per share (+1.6%) proposed to the AGM In euros % 37% 38% 38% 45% 44% 44% 46% 51% Dividend Per Share * On ordinary dividend Exceptional dividend EPS Group Share The dividend will be paid on 28 may 2014 subject to the approval the AGM Attributed fiscal year 5 Pay-out ratio*

6 BIC IN 2013 Total Cash returned to Shareholders In million d euros , * En 2005 En 2006 En 2007 En 2008 En 2009 En 2010 En 2011 En 2012 En 2013 mars-14 Ordinary dividend Exceptional dividend Share buyback * Estimates based on 31-DEC-2013 number of shares outstanding excluding treasury shares 6

7 USE OF CASH Invest to prepare the future CAPEX Bolt-on strategic acquisitions Ensure a steady growth of the ordinary dividend Pay-out ratio 51% Dividend per share Special Dividend Special dividend Share buy-back 7

8 2013 Consolidated Results and First Quarter 2014

9 2013: FROM NET SALES TO EPS BIC Group In million euros Change Change at constant currencies* Change on a comparative basis* Net Sales 1, , % +4.6% +3.6% Gross Profit % Normalized IFO % Income from Operations % Tax rate 31.9% 30.6% Net Income Group Share % EPS Group Share % 9

10 2013 NORMALIZED INCOME FROM OPERATIONS MARGIN 19.4% % normalized IFO margin Gross Margin Brand support Foreign currency changes Other operating expenses 2013 normalized IFO margin 10

11 2013 CAPEX DEPRECIATION & AMORTIZATION In million euros BIC GRAPHIC 7% STATIONERY 23% 89 OTHERS 18% CAPEX Depreciation and Amortization SHAVERS 23% LIGHTERS 29% 11

12 2013 : NET CASH POSITION In million euros Operations Shareholders Remuneration Impact of Cello Consolidati on (3) Net Cash From Operations M December 2012 Net Cash Position Cash from operations Impact of working capital Other Cash Flow From Operations CAPEX Cello Cash Out 2012 Dividend Payment Share buyback(1) Exercise of stock options and liquidity contract (1): Total FY 2013 share buy-back: 956,292 shares (2): Cello Put options valuation: million euros / Cello Net Cash position at 31-DEC-2013: million euros 12 Others December 2013 Net Net impact of Cello December 2013 Net Cash Position Excl. Cello consolidation impact Consolidation(2) Cash Position

13 GROUP Q KEY FIGURES +1.3% Net Sales: million euros +4.5% Consumer business* (88% of total sales) +4.9% Developed markets +2.2% Developing markets +9.5% As reported 3.7% As reported without Cello On a comparative basis BIC Graphic* (12% of total sales) +1.4% Normalized Income from Operations: 76.4 million euros Q1 13 Q % 17.6% 15.6% 17.6% Normalized IFO margin Consumer business 20.9% BIC Graphic 7.2% * on a comparative basis IFO Margin Normalized IFO Margin 13

14 2013 and 2014 Operational trends

15 STATIONERY IN 2013 Net Sales M +2.1% (on a comparative basis) Normalized IFO margin 12.7% CAPEX 25 M Continued market share gains in an intensively competitive environment Distribution gains and strong Back-to-School sell-out Double-digit growth in Eastern Europe Market share Outperformance on a slightly declining U.S. market Expanded distribution Good Back-to-school Market share Low-single digit growth in Latin America High-single digit growth in Middle-East and Africa Low-single digit growth in Asia Market share 15

16 STATIONERY IN 2014 Simplify and Improve Consumers Shopping Experience Consumer benefit oriented 16

17 STATIONERY IN 2014 Create Greater Value through innovation and new usage opportunities H BIC Stylus BIC Magic Markers Existing Offer BIC Kids

18 STATIONERY IN 2014 BIC Kids An innovative ergonomic writing instrument range designed for helping kids to better learn how to write 18

19 LIGHTERS IN 2013 Net sales M +7.0% (on a comparative basis) Normalized IFO margin 37.0% CAPEX 30 M Good performance in Central and Eastern Europe (distribution gains) Flat in Southern countries Market share Success of our category leading safety and quality positioning, our added-value sleeve designs and our 40th anniversary of BIC pocket lighter promotion Market share Latin America: distribution gains across most of the region especially in Mexico and Argentina. Middle-East and Africa: distribution gains and improving visibility Asia: performance driven by Japan and global improved in-store visibility Market share 19

20 LIGHTERS IN 2014 Europe North America Latin America Asia 20

21 SHAVERS IN 2013 Net sales M +6.5% (on a comparative basis) Normalized IFO margin 17.0% CAPEX 25 M Growth in Eastern Europe Success of our triple blades products Market share Highly competitive and promoted environment market shares maintained in both men s and women s segments Market share Latin America: performance driven by our triple blade disposable shavers and the launch of BIC Flex 4 refillable. Middle-East and Africa: solid position maintained in our core products Market share 21

22 SHAVERS IN 2014 Developed countries BIC Soleil Glow An Effortless glide for silky smooth skin COMFORT SHIELD head evenly distributes pressure, glides and helps protect your skin from irritation Competitor BIC Soleil Glow 6.97 USD 7.97 USD 3 flexible blades individually adjust to all your curves Lubricating Strips with Vitamin E and Aloe to pamper your skin Pivoting Head and Rubber Grip for ultimate comfort 22

23 SHAVERS IN 2014 Developing countries Latin America BIC 3 Acqua et BIC 3 Intensity 3 Blades for the price of 2! Price in Brazilian real Competitor 2 blades BIC Comfort 3 Competitor 2 blades BIC 3 BIC Comfort 2 4,0 4,5 4,5 7,5 7,5 23

24 OTHER CONSUMER PRODUCTS IN 2013 Net sales 68.2 M +12.5% (on a comparative basis) Normalized IFO margin M Net sales change of BIC Sport on comparative basis +28% +16% +8% +8% Assemblée Générale du 14 mai

25 BIC GRAPHIC IN 2013 Net sales M -5.0% (on a comparative basis) Normalized IFO margin 4.3% CAPEX 8 M Stationery Europe Success of new products North America Improving trends in sales towards the end of the year, thanks to new product launches Hard goods Europe Northern countries sales driven by added value products Challeging environment in Southern countries North America Good Value range of value priced items and the innovative new BritePix imprinted technology well received by customers. Calendars Decrease in the U.S. calendar industry Continued strong market share for BIC Graphic Annual Assemblée Shareholders Générale meeting du 14 mai of May

26 BIC GRAPHIC IN 2014 With restored Customer Service and an innovative printed Technology, build the right platform to recover momentum A new Branding policy Innovation & New Products Enhanced marketing & Communication Compliant Products 26

27 Our environmental, social and societal responsability in 2013

28 2013: COMPLETION OF THE SECOND EDITION OF THE SUSTAINABLE DEVELOPMENT BAROMETER 8.7/10 RESULTS GLOBAL BAROMETER PRODUCTS SOCIAL INDUSTRY Products environmental performance Products environmental benefits Packaging Workers accidents BIC Code of conduct Employees training Commitment towards communities Environmental and health & safety management systems Energy consumption and waste production Reduce GreenHouse gas emissions 9/10 9,7/10 0/10 10/10 9/10 10/10 10/10 9,8/10 10/10 10/10 28

29 DISTRIBUTION TO STAKEHOLDERS IN 2013 Communities 1.9 M Net investments M Employees M Customers Net sales ,887.8 M Suppliers M Shareholders M Governments M Banks 6.1 M 29

30 Honor the past To Invent the Future 30

31 BIC TODAY A clear strategy A balanced portfolio of activities A diversified geographical footprint 12% 33% GROWING MARKETS 31% EUROPE 26% 4% 20% 31% 31 NORTH AMERICA 43%

32 : 10 YEARS OF WELL BALANCED GROWTH BIC net sales evolution* Consumer Product Business net sales evolution* in % per year on average GDP evolution in regions where BIC is present EUROPE NORTH AMERICA +4.3% +4.6% +3.4% per year on GROWING average +6.5% MARKETS Sources : IMF 2014 World Economic Outlook * On a comparable basis 32

33 OUR ROADMAP FOR THE COMING YEARS On mature or maturing markets Continue to innovate to better answer consumers needs and desires Continue to resist and to adapt to economic uncertainties On fast growing markets In Eastern Europe: capitalize on the know-how acquired in other regions In Africa and Middle-East: leverage 50 years of historical presence In Asia: built serenely strong positions in the region 33

34 MATURE OR MATURING MARKETS NORTH AMERICA WESTERN EUROPE LATIN AMERICA 34

35 CONTINUE TO INNOVATE TO BETTER ANSWER CONSUMERS NEEDS AND DESIRES LIGHTERS IN THE U.S. Distribution Visibility Safety guarantee Consistent Quality Innovation Product Sleeve Textures Licenses From the utility product to the essential accessory 35

36 CONTINUE TO INNOVATE TO BETTER ANSWER CONSUMERS NEEDS AND DESIRES LIGHTERS IN THE U.S. Sale of added-value BIC lighters +17% CAGR Sale of BIC lighters +7.5% Pocket lighter market +5% Sources : BIC IRI study 36 Cigarettes consumption 0%

37 CONTINUE TO INNOVATE TO BETTER ANSWER CONSUMERS NEEDS AND DESIRES SHAVERS IN BRAZIL One-piece shaver brazilian market (in value) BIC shavers range in Brazil One blade Two blades Three and more blades 29% BIC Flex 4 (System) 66% BIC Comfort 3 5% BIC 1 BIC Comfort 2 BIC Sources : BIC AC Nielsen study 37

38 CONTINUE TO RESIST AND TO ADAPT TO ECONOMIC UNCERTAINTIES STATIONERY IN SPAIN Stationery market trends in Spain %

39 CONTINUE TO RESIST AND TO ADAPT TO ECONOMIC UNCERTAINTIES STATIONERY IN SPAIN BIC España* Market shares 25.9% 35.1% *Back to School season 39

40 FAST GROWING MARKETS MIDDLE-EAST AND AFRICA EASTERN EUROPE ASIA 40

41 EASTERN EUROPE: CAPITALIZE ON THE KNOW-HOW ACQUIRED IN OTHER REGIONS - UKRAINE 2009 BIC Ukraine net sales around 3 million euros Low BIC brand knowledge A young and little trained team Exisiting products little adapted 41

42 EASTERN EUROPE: CAPITALIZE ON THE KNOW-HOW ACQUIRED IN OTHER REGIONS - UKRAINE Shared experience with teams in Latin-America Products choosen in the existing portfolio with a new packaging Investments in brand support 42

43 EASTERN EUROPE: CAPITALIZE ON THE KNOW-HOW ACQUIRED IN OTHER REGIONS - UKRAINE BIC Ukraine net sales around 3 million euros BIC Ukraine net sales around 7 million euros

44 MIDDLE-EAST AND AFRICA: LEVERAGE 50 YEAR OF HISTORICAL PRESENCE Real growth field thus still heterogenous GNP per capita trend GDP growth rate in 2016 Africa +5.3% a year in average Mature economies +4.1% a year in average Middle-East +2.8% a year in average +2% à +6% +6% à +10% > +10% ND Sources : FMI 2014 World Economic Outlook 44

45 MIDDLE-EAST AND AFRICA: LEVERAGE 50 YEAR OF HISTORICAL PRESENCE

46 MIDDLE-EAST AND AFRICA: LEVERAGE 50 YEAR OF HISTORICAL PRESENCE MALAWI TUNISIA ALGERIA SOMALIA DJIBOUTI MADAGASCAR ANGOLA YEMEN EQUATORIAL GUINEA TANZANIA IRAK CONGO KOWEIT SOUTH AFRICA KENYA OUGANDA ETHIOPIA MOROCCO LEBANON ZIMBABWE ERITREA NIGERIA 46

47 MIDDLE-EAST AND AFRICA: LEVERAGE 50 YEAR OF HISTORICAL PRESENCE 2014 BIC products sold in 75 countries 5 subsidiaries 2 writing instrument factories 128 employees 43 distributors 47

48 ASIA: BUILT SERENELY STRONG POSITIONS IN THE REGION GDP per capita (in dollars) India Rajasthan Gujrat Punjab Jammu & Kashmir Haryana Madhya Pradesh Uttar Pradesh Arunachal Pradesh Bihar Asam Manipure Jharkhand West Bengal Chhartisgrah 1.2 billion inhabitants Maharashtra Goa Andrha Pradesh Orissa Literacy rate 73% Karnataka Kerala Tamilnadu Sources : IMF 2014 World Economic Outlook 48

49 ASIA: BUILT SERENELY STRONG POSITIONS IN THE REGION P E N S N 1 writing instrument brand in India 81 M net sales in 2013, App. + 10% growth 7,000 Employees 2 Manufacturing sites* IFO margin 23% 1 million points of sales *7 factories 49

50 ASIA: BUILT SERENELY STRONG POSITIONS IN THE REGION GDB growth rate in 2016 Rest of Asia 2 Factories Sationnery Lighters end of 2015 BIC products distributed in 14 countries +2% à +6% +6% à +10% 1 Writing instruments flag ship store in Shanghai Sources : FMI 2014 World Economic Outlook 50

51 Governance

52 BOARD OF DIRECTORS COMPOSITION IN 2013 John Glen CEO of Buccleuch Group François Bich Executive Vice- President Pierre Vareille CEO of Constellium Frédéric Rostand CEO of SODIAAL Edouard Bich Representative of MBD Marie-Pauline Chandon-Moët President of Ferrand SAS Independent directors Elizabeth Bastoni BGI Human ressources Director Bruno Bich Chairman Mario Guevara Officer and Director Marie-Henriette Poinsot Director of Strategic Planning Options SAS 52

53 BOARD OF DIRECTORS 10 directors 6 meetings in % rate of attendance Independents Nationalities Women Accounts and Budget Settlement of full year and half year financial statements and review of quarterly results and 2014 budget Corporate governance Compensation of Corporate Officers and Directors Succession plan of the Corporate Officers Allocation of free shares Strategy Analysis of the strategy for the Group s Shaver and Advertising and Promotionnal Products Cello Pens acquisition finalization Sustainable Development Program Progress of the project for fuel cell April 2013 : Factory visite of BIC Graphic in Minnesota (USA) February 2014 : meeting of Independent Directors 53

54 COMPENSATION OF THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER Principles Compensation and Nomination Committee (3 members of which 2 independent Directors) comparable companies Directors compensation evolution analysis Analysis of individual performances and of the company Reflects Group s priorities in variable remuneration both short and long-term Analysis of total reaward including all benefits 54

55 COMPENSATION OF THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER 2013 total remuneration Chairman Chief Executive Officer Comparative Median SBF 120 Bruno Bich Comparative Median SBF 120 Mario Guevara Total compensation = Fixe + Variable + Performance shares 55

56 «Honor the past invent the future People are the cornerstone of our philosophy» 56