BIC Group Full Year Results

Transcription

1 March, BIC Group Full Year Results Investors Relations Department +33 (0)

2 2003 Highlights Net sales: +2.5% at constant currencies*, driven by good performance in the Americas Stationery: Consumer products increased slightly and gained market share, imprinted business recovered in the 2 nd Half Lighters: the Americas drove the growth Shavers: BIC successfully entered the 3-blade segment, while single- and twin-blade decreased in Europe and North America Operating margin decreased by 1.5 point at 15.4% Stationery margin Lighter margin Shaver margin * Constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates 3

3 2003 Highlights Currency fluctuation continued to have a negative impact (>11 points) on our sales and earnings, but not on inter-company dividends, which were fully hedged Share buyback and cancellation: In 2003, BIC bought 2,343,236 shares and cancelled 3,289,121 shares Today, the authorized share capital of SOCIÉTÉ BIC is made up of 53,914,276 shares 4

4 Key figures BIC Group In million Euro Change Change at constant currencies** Net Sales 1,492 1, % + 2.5% Gross Profit % - 0.2% Income from operations % - 7.0% Income before tax % - 5.4% Tax provision % - 6.2% Group net income % - 1.4% Tax rate 38% 38% EPS Goodwill / share Number of shares* ,743, ,393, % + 9.6% + 2.8% * Weighted average number of shares net of treasury shares ** Constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates 5

5 Currency impact Change in net sales and in volume BIC Group Actual currencies Constant currencies Volume Europe -2.7% -1.8% -5% North and Central America -12.0% +4.8% -2% South America -2.7% +20.4% EEMEA and Asia -15.4% -11.5% Total Group -8.8% +2.5% +12% -20% -5% 6

6 Net Sales - by Geographies In million Euro (at actual currencies) (29%) 457 (31%) (33%) Western Europe 444 North and Central America South America Eastern Europe, Middle-East, Africa and Asia 832 (54%) 810 (54%) 713 (52%) (9%) (8%) (7%) (8%) (7%) (8%) Total Group 1,533 1,492 1,360 7

7 Margin evolution Gross margin In % of sales Operating margin Pre-tax margin 60% 55% 50% 55.1% 16.4% 56.2% 16.8% 55.7% 16.9% 54.6% 20% 18% 45% 40% 14.9% 14.3% 15.4% 16% 35% 13.2% 14% 30% 25% 13.2% % 8

8 Gross Margin 2002 Gross Margin 55.7% Changes vs Material costs Pensions Manufacturing costs -0.1 point -0.2 point -0.8 point FX impact on product costs -0.9 Shaver - C3 Air Freight -0.2 Other point Total change -1.1 point 2003 Gross Margin 54.6% 9

9 Operating margin 2002 Operating margin 16.9% Changes vs Gross margin decrease -1.1 point Freight & Distribution costs -0.2 point Brand support -0.3 point Other operating expenses +0.1 point Total change -1.5 point 2003 Operating margin 15.4% 10

10 Bridge from IFO to IBT BIC Group In million Euro Change Income from operations % Finance income / (costs) net (19) (9) Other income / (expenses) (9) (10) Goodwill amortization (11) (11) Income before tax % 11

11 Finance income / (costs) In million Euro 2002 BIC shares revaluation (1) impact (1) 2003 Lower interest expense 3 FX gain 3 BIC shares revaluation 1 Other impact 9 Change 03/02 10m 12

12 Other income / (expense) In million Euro Gain on real estate 3 Stationery streamlining (7) impact (4) Gain on real estate 14 Stationery streamlining (5) Distributor litigation & termination fees (6) Other non-recurring (8) impact (5) Change 03/02 (1)m 13

13 Tax rate 2002 Effective tax rate 38% 2003 Target range 38-39% 2003 Effective tax rate 38% 14

14 Condensed Balance Sheet In million Euro Change Non-current assets (112) Current assets (35) Cash & cash equivalents Total Assets 1,566 1,458 (108) Shareholder s equity 1,180 1,110 (70) Minority interests Long-term liabilities (25) Current liabilities (13) Total liabilities and shareholders equity 1,566 1,458 (108) 15

15 Working Capital Further reduction of our working capital, by 8%, to 325m Inventory reduction, from 256m to 242m From 2001 to 2003, inventories were down a little over 30 days at constant currencies. In 2003, down 6 days at constant currencies 16

16 Capex In million Euro nd Half Approx st Half e 17

17 Financial key points Margins felt the pressure of a very competitive environment Strong balance sheet: net cash position increased 39m compared to last year 18

18 Restructuring In an effort to consolidate worldwide operations, BIC is seriously considering closure of its BIC ballpoint pen and shaver manufacturing operations in Milford, Connecticut, USA, and its SHEAFFER Pen manufacturing facility in Fort Madison, Iowa, USA Estimated costs: $ 90m (1/3 cash, 2/3 non cash); approximately 400 positions would be impacted Expected savings: $ 25m on a full year basis, with savings expected to begin as early as 2005 Discussions with Unions have started 19

19 Net sales by categories In million Euro (at actual currencies) Stationery Lighters 800 (52%) 791 (53%) 711 (52%) Shavers Other products 378 (25%) 369 (25%) 341 (25%) (20%) (3%) (19%) (3%) (19%) (4%) Total Group 1,533 1,492 1,360 20

20 Stationery In million Euro Net Sales IFO Change in sales +2.0% -1.1% -10.2% Change in sales at constant currencies +1.7% +5.5% +1.4% Change in volume -1% +4% -4% Operating margin 14.6% 15.4% 13.9% 21

21 Lighters In million Euro Net Sales IFO Change in sales -5.3% -2.5% - 7.6% Change in sales at constant currencies -4.3% +3.4% +4.5% Change in volume -7% +1% 0% Operating margin 23.5% 24.4% 25.6% 22

22 Shavers In million Euro Net Sales IFO Change in sales +3.4% -4.8% -10.7% Change in sales at constant currencies +3.9% +4.1% +0.3% Change in volume +3% +2% -10% Operating margin 16.1% 15.1% 9.3% 23

23 Shaver summary BIC Strategy Price BIC Comfort 3 TM 3 blades lube 2 blades lube 2 blades without lube 1 blade Soleil TM Value Premium Super Premium 24

24 2004 New product BIC is pursuing its strategy to target higher female value added segments with the launch of Soleil TM at the right price Soleil TM is the first 1-piece 3-blade shaver specifically designed for women (consumer test equal to Sensor3 for women) Launch schedule: Spring

25 Shaver retail pricing umbrella System or 1-piece Average price in Euro Average price index S S S S S S S S S 1P 1P S 1P S 1P S 1P 1P 1P 1P 1P 1P 1P 1P 1P Source: BIC category information M3 Power Intuition Venus Divine Quattro Mach 3 Turbo Venus Sensor3 System Mach3 Xtreme 3 System Sensor 3 Xtreme 3 Sensor Excel Soleil TM Sensor BIC Comfort 3 Trac II Agility Custom Plus Softwin ST Good News BIC Comfort Twin Twin Select Plus Classic Soleil TM BIC Schick Gillette

26 Outlook FY04 sales: we plan to deliver higher organic growth than in 2003 Stationery: both classic and new products should do well Lighters: Asian imports in Europe remain the challenge, while we should continue to grow in the Americas Shavers: intensified competitive environment, launch of Soleil TM 27

27 Calendar 1 st Quarter 2004 Net Sales 22 April 2004 Annual General Meeting 3 June nd Quarter & 1st Half 2004 Net Sales 22 July st Half 2004 Results 9 September rd Quarter 2004 Net Sales 21 October