annual shareholders’ meeting · bic® soleil® glow™ an effortless glide for silky smooth skin...
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Annual Shareholders’ meeting
Clichy 14 May 2014
Annual Shareholders’ meeting of 14 May 2014 2
« Honor the past…
invent the future
People are
the cornerstone of
our philosophy »
Annual Shareholders’ meeting of 14 May 2014 3
BIC IN 2013
Good performance of Consumer categories
Continued investment in our brand, new products and innovation and Manufacturing Capacities
Majority stake in Cello Pens
Strong cash generation
Annual Shareholders’ meeting of 14 May 2014
Bénéfice Net Par Action
4
+3.6%Chiffre d’affaires
Marge d’exploitation
Normalisée
Position nette de trésorerie
18.2%
5.13€ 196.7M€
BIC IN 2013
Normalized IFO margin
Net Sales*
Consumer Business+5.2%
Net cash positionEPS Group Share
* Change on a comparative basis
Annual Shareholders’ meeting of 14 May 2014
1.15 1.30 1.35 1.35 1.40
1.901.90
2.56 2.60
1.00
1.803.11 3.43 3.51 3.00 3.15
4.295.00 5.48 5.13
2005 2006 2007 2008 2009 2010 2011 2012 2013
Dividend Per Share Exceptional dividend EPS Group Share
37% 37% 38% 38% 45% 44% 46% 51%44%
Attributed fiscal year* On ordinary dividendThe dividend will be paid on 28 may 2014 subject to the approval the AGM
5
In euros
Pay-out ratio*
BIC IN 2013
Ordinary dividend of 2.60 euros per share(+1.6%) proposed to the AGM
Annual Shareholders’ meeting of 14 May 2014
2558 64 65 65 68
91 104121 122*
51
49
85
72
49 40 262
42 101
1,6
80
En 2005 En 2006 En 2007 En 2008 En 2009 En 2010 En 2011 En 2012 En 2013 mars-14
148
107 10491
67
159
192 191 201
Total Cash returned to Shareholders
In million d’euros
6
BIC IN 2013
Ordinary dividend Exceptional dividend Share buyback
* Estimates based on 31-DEC-2013 number of shares outstanding excluding treasury shares
Annual Shareholders’ meeting of 14 May 2014
2013 Pay-out ratio 51%
Investto preparethe future
CAPEX
Bolt-on strategic acquisitions
Special dividend Share buy-back
0.90 1.15 1.30 1.35 1.35 1.401.90 2.20
2.56 2.60
1.001.00
1.80
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Dividend per share Special Dividend
7
Ensure a steady growth of the ordinary dividend
USE OF CASH
Annual Shareholders’ meeting of 14 May 2014
2013 Consolidated Results
and First Quarter 2014
Annual Shareholders’ meeting of 14 May 2014 9
2013: FROM NET SALES TO EPS
BIC GroupIn million euros 2012 2013 Change
Change at constant
currencies*
Change on a comparative
basis*
Net Sales 1,898.7 1,887.8 -0.6% +4.6% +3.6%
Gross Profit 964.2 929.5 -3.6%
Normalized IFO 368.3 344.2 -6.5%
Income from Operations 365.0 339.2 -7.1%
Tax rate 31.9% 30.6%
Net Income Group Share 259.6 241.5 -7.0%
EPS Group Share 5.48 5.13 -6.4%
Annual Shareholders’ meeting of 14 May 2014
-1.6
0.20.6
-0.4
2012 normalizedIFO margin
Gross Margin Brand support Foreign currencychanges
Other operatingexpenses
2013 normalizedIFO margin
19.4%
10
18.2%
2013 NORMALIZED INCOME FROM OPERATIONS MARGIN
Annual Shareholders’ meeting of 14 May 2014
STATIONERY23%
LIGHTERS29%SHAVERS
23%
OTHERS18%
BIC GRAPHIC
7%
2013 CAPEX – DEPRECIATION & AMORTIZATION
11
5363
89
125107
75 77 71 72 75
2009 2010 2011 2012 2013CAPEX Depreciation and Amortization
In million euros
Annual Shareholders’ meeting of 14 May 2014
334.5278.7
196.7
+349.8
-19.0 -2.3
-106.9-79.6
-120.8-80.2
+13.0
-9.8
-82.0
December 2012 NetCash Position
Cash fromoperations
Impact of workingcapital
Other Cash FlowFrom Operations
CAPEX Cello Cash Out 2012 DividendPayment
Share buyback(1) Exercise of stockoptions and liquidity
contract
Others December 2013 NetCash Position Excl.Cello consolidation
impact
Net impact of CelloConsolidation(2)
December 2013 NetCash Position
2013 : NET CASH POSITION
12
Operations Shareholders Remuneration
In million euros
Net Cash From Operations +328.5M€
Impa
ctof
Cel
lo
Con
solid
ati
on (3
)
-201.0
(1): Total FY 2013 share buy-back: 956,292 shares (2): Cello Put options valuation: -107.2 million euros / Cello Net Cash position at 31-DEC-2013: +25.2 million euros
Annual Shareholders’ meeting of 14 May 2014
GROUP Q1 2014 KEY FIGURES
13
* on a comparative basis
Developed markets +2.2%
Developing markets +9.5%
Consumer business*(88% of total sales) +4.9%
BIC Graphic*(12% of total sales)
+1.4%
Consumer business 20.9%
BIC Graphic ‐7.2%
Q1 14Q1 13
Net Sales: 434.2 million euros
+1.3%
‐3.7%
+4.5%
As reported As reported withoutCello
On a comparativebasis
15.2%17.6%
IFO Margin
15.6% 17.6%
Normalized IFO Margin
Normalized IFO margin
Normalized Income from Operations: 76.4 million euros
Annual Shareholders’ meeting of 14 May 2014
2013 and 2014Operational trends
Annual Shareholders’ meeting of 14 May 2014
STATIONERY IN 2013
Net Sales616.4 M€+2.1%
(on a comparative basis)
NormalizedIFO margin 12.7% CAPEX 25 M€
Continued market share gains in an intensively competitive environmentDistribution gains and strong Back-to-School sell-out Double-digit growth in Eastern Europe
Outperformance on a slightly declining U.S. marketExpanded distributionGood Back-to-school
Low-single digit growth in Latin AmericaHigh-single digit growth in Middle-East and AfricaLow-single digit growth in Asia
Market share
15
Market share
Market share
Annual Shareholders’ meeting of 14 May 2014
STATIONERY IN 2014
Simplify and Improve Consumers Shopping Experience
16
Consumer benefit
oriented
Annual Shareholders’ meeting of 14 May 2014
STATIONERY IN 2014
Create Greater Value through innovation and new usage opportunities
2014
H2 2013
201417
Existing Offer
BIC®
Stylus
BIC®
Kids
BIC ®
Magic Markers
Annual Shareholders’ meeting of 14 May 2014
STATIONERY IN 2014
BIC® KidsAn innovative ergonomic writing instrument range designed
for helping kids to better learn how to write
18
Annual Shareholders’ meeting of 14 May 2014
LIGHTERS IN 2013
Net sales557.8 M€
+7.0%(on a comparative basis)
NormalizedIFO margin 37.0% CAPEX 30 M€
Good performance in Central and Eastern Europe (distribution gains)
Flat in Southern countries
Success of our category leading safety and quality positioning, our added-value sleeve designs and our 40th anniversary of BIC® pocket lighter promotion
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
19
Market share
Market share
Market share
Annual Shareholders’ meeting of 14 May 2014
LIGHTERS IN 2014
Europe North America
Latin America Asia
20
Annual Shareholders’ meeting of 14 May 2014
SHAVERS IN 2013
Net sales377.5 M€
+6.5%(on a comparative basis)
NormalizedIFO margin 17.0% CAPEX 25 M€
Growth in Eastern Europe
Success of our triple blades products
Highly competitive and promoted environment
market shares maintained in both men’s and women’s segments
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
21
Market share
Market share
Market share
Annual Shareholders’ meeting of 14 May 2014
SHAVERS IN 2014Developed countries
BIC® Soleil® Glow™An Effortless glide for silky smooth skin
6.97 USD
7.97 USD
BIC Soleil Glow
Competitor
COMFORT SHIELD™ head evenly distributes pressure, glides and helps protect your skin from irritation
3 flexible blades individually adjust to all your curvesLubricating Strips with Vitamin E and Aloe to pamper your skinPivoting Head and Rubber Grip for ultimate comfort
22
Annual Shareholders’ meeting of 14 May 2014
SHAVERS IN 2014Developing countries – Latin America
BIC® 3 Acqua et BIC® 3 Intensity3 Blades for the price of 2!
4,0
4,5
4,5
7,5
7,5
BIC Comfort 2
BIC 3
Competitor 2 blades
BIC Comfort 3
Competitor 2 blades
23
Price in Brazilian real
Assemblée Générale du 14 mai 2014
OTHER CONSUMER PRODUCTS IN 2013
Net sales68.2 M€+12.5%
(on a comparative basis)
NormalizedIFO margin -16.1 M€
+8% +8%
+28%
+16%
2010 2011 2012 2013
Net sales change of BIC Sport on comparative basis
24
Assemblée Générale du 14 mai 204Annual Shareholders’ meeting of 14 May 2014
BIC GRAPHIC IN 2013
StationeryEurope
• Success of new productsNorth 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.
CalendarsDecrease in the U.S. calendar industry Continued strong market share for BIC Graphic
Net sales267.9 M€
-5.0%(on a comparative basis)
NormalizedIFO margin 4.3% CAPEX 8 M€
25
Annual Shareholders’ meeting of 14 May 2014
BIC GRAPHIC IN 2014
With restored Customer Service and an innovative printed Technology, build the right platform to recover momentum
A newBranding
policy
26
Enhanced marketing &
Communication
Innovation&
New Products
CompliantProducts
Annual Shareholders’ meeting of 14 May 2014
Our environmental,
social and societal
responsability
in 2013
Annual Shareholders’ meeting of 14 May 2014
8.7/10
RESULTSGLOBAL BAROMETER
2013: COMPLETION OF THE SECOND EDITION OF THE SUSTAINABLE DEVELOPMENT BAROMETER
28
PRODUCTS SOCIAL INDUSTRY
Productsenvironmentalperformance
Productsenvironmental
benefits
Packaging Workers’ accidents
BIC Code of conduct
Employees’ training
Commitmenttowards
communities
9/10 9,7/10 0/1010/10 9/10 10/10 10/10
Environmentaland health &
safetymanagement
systems
Energyconsumption
and wasteproduction
ReduceGreenHouse gas
emissions
9,8/10 10/10 10/10
Annual Shareholders’ meeting of 14 May 2014
DISTRIBUTION TO STAKEHOLDERS IN 2013
Suppliers969.0 M€
Communities1.9 M€
Banks6.1 M€
Governments106.6 M€
Shareholders201.0 M€
Net investments102.8 M€
CustomersNet sales
20131,887.8 M€
Employees511.1 M€
29
Annual Shareholders’ meeting of 14 May 2014 30
Honor the past…
To
…Invent
the Future
Annual Shareholders’ meeting of 14 May 2014
BIC TODAY
A clearstrategy
A balanced portfolio of activities
A diversified geographicalfootprint
NORTH AMERICA43%
GROWING MARKETS31%
33%
31%
20%
4%
12%
31
EUROPE26%
Annual Shareholders’ meeting of 14 May 2014
2004 – 2013 : 10 YEARS OF WELL BALANCED GROWTH
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
BIC net sales evolution*
+3.7% per year on average
GDP evolution in regions where BIC is
present
+3.4% per year on average +6.5%
+4.6%
+4.3%EUROPE
NORTH AMERICA
GROWING MARKETS
32
Consumer Product Businessnet sales evolution* in 2013
Sources : IMF – 2014 World Economic Outlook* On a comparable basis
2004- 2013
Annual Shareholders’ meeting of 14 May 2014
OUR ROADMAP FOR THE COMING YEARS
On mature or maturing markets
Continue to resist and to adapt to economic uncertainties
Continue to innovate to better answer consumers’ needs and desires
On fast growing marketsIn Eastern Europe: capitalize on the know-how acquired in other regions
In Africa and Middle-East: leverage 50 years of historical presence
33
In Asia: built serenely strong positions in the region
Annual Shareholders’ meeting of 14 May 2014
MATURE … OR MATURING MARKETS
NORTHAMERICA
LATINAMERICA
34
WESTERNEUROPE
Annual Shareholders’ meeting of 14 May 2014
CONTINUE TO INNOVATE TO BETTER ANSWER CONSUMERS’ NEEDS AND DESIRES – LIGHTERS IN THE U.S.
Innovation Product
Distribution Visibility
From the utility product to the essential accessory
Safety guarantee
35
Consistent Quality
Sleeve Textures Licenses
Annual Shareholders’ meeting of 14 May 2014
Cigarettesconsumption
Pocket lighter market
Sale of BIC® lighters
Sale of added-valueBIC® lighters
2010 2011 2012 2013
CAGR2013-2010
36
+17%
+7.5%
+5%
0%Sources : BIC – IRI study
CONTINUE TO INNOVATE TO BETTER ANSWER CONSUMERS’ NEEDS AND DESIRES – LIGHTERS IN THE U.S.
Annual Shareholders’ meeting of 14 May 2014
BIC 1
BIC Comfort 2
BIC 3
BIC Comfort 3
BIC Flex 4 (System)
CONTINUE TO INNOVATE TO BETTER ANSWER CONSUMERS’ NEEDS AND DESIRES – SHAVERS IN BRAZIL
2006 2007 2008 2009 2010 2011 2012 2013
One blade Two blades Three and more blades
37
One-piece shaver brazilianmarket (in value)
BIC® shavers range in Brazil
29%
66%
5%
Sources : BIC – AC Nielsen study
Annual Shareholders’ meeting of 14 May 2014
CONTINUE TO RESIST AND TO ADAPT TO ECONOMIC UNCERTAINTIES – STATIONERY IN SPAIN
Stationery market trends in Spain
2008 2009 2010 2011 2012 2013
2008-2013-6.0%
38
Annual Shareholders’ meeting of 14 May 2014 39
BIC España* Market shares
25.9%
35.1%
2008 2009 2010 2011 2012 2013*Back‐to‐School season
CONTINUE TO RESIST AND TO ADAPT TO ECONOMIC UNCERTAINTIES – STATIONERY IN SPAIN
Annual Shareholders’ meeting of 14 May 2014
FAST GROWING MARKETS
40
EASTERNEUROPE
ASIAMIDDLE-EAST
AND AFRICA
Annual Shareholders’ meeting of 14 May 2014
EASTERN EUROPE: CAPITALIZE ON THE KNOW-HOW ACQUIRED IN OTHER REGIONS - UKRAINE
BIC Ukraine net salesaround 3 million euros Low BIC® brand knowledge
A young and little trained team Exisiting products little adapted
41
2009
Annual Shareholders’ meeting of 14 May 2014
Products choosen in the existing portfolio… with a new
packaging
Shared experience withteams…
in Latin-America
Investmentsin brand support
2010 – 2011 – 2012
42
EASTERN EUROPE: CAPITALIZE ON THE KNOW-HOW ACQUIRED IN OTHER REGIONS - UKRAINE
Annual Shareholders’ meeting of 14 May 2014
2009 2010 2011 2012 2013
BIC Ukraine net sales around 3 million euros
43
2009 2013BIC Ukraine net salesaround 7 million euros
EASTERN EUROPE: CAPITALIZE ON THE KNOW-HOW ACQUIRED IN OTHER REGIONS - UKRAINE
Annual Shareholders’ meeting of 14 May 2014
MIDDLE-EAST AND AFRICA: LEVERAGE 50 YEAR OF HISTORICAL PRESENCE
Middle-East
Mature economies
Africa
Real growth field thus still heterogenous
44
GNP per capita trend 2014 - 2019 GDP growth rate in 2016
> +10%
+6% à +10%
+2% à +6%
ND
Sources : FMI – 2014 World Economic Outlook
+5.3% a year in average
+4.1% a year in average
+2.8% a year in average
Annual Shareholders’ meeting of 14 May 2014 45
1958
MIDDLE-EAST AND AFRICA: LEVERAGE 50 YEAR OF HISTORICAL PRESENCE
Annual Shareholders’ meeting of 14 May 2014 46
TUNISIA ALGERIA
ANGOLA MOROCCOCONGO
OUGANDATANZANIA
KENYASOMALIA
MADAGASCAR
ERITREA
ETHIOPIA
EQUATORIAL GUINEA
LEBANON
KOWEITNIGERIASOUTH AFRICA …
ZIMBABWEYEMEN
MALAWI
IRAK
DJIBOUTI
1970’1958
MIDDLE-EAST AND AFRICA: LEVERAGE 50 YEAR OF HISTORICAL PRESENCE
Annual Shareholders’ meeting of 14 May 2014
MIDDLE-EAST AND AFRICA: LEVERAGE 50 YEAR OF HISTORICAL PRESENCE
BIC® products sold in 75 countries5 subsidiaries
2 writing instrument factories128 employees43 distributors
47
2014
Annual Shareholders’ meeting of 14 May 2014
ASIA: BUILT SERENELY STRONG POSITIONS IN THE REGION
India
1505 15841702
18331979
21292302
2013 2014 2015 2016 2017 2018 2019
1.2
73%
billion inhabitants
Literacy rate
48
Sources : IMF – 2014 World Economic Outlook
GDP per capita(in dollars)
Jammu & Kashmir
Punjab
Haryana
Rajasthan
GujratMadhyaPradesh
Maharashtra
Goa
Karnataka
Kerala
UttarPradesh Bihar
Jharkhand
Chhartisgrah
Orissa
AndrhaPradesh
Tamilnadu
WestBengal
ArunachalPradesh
Asam
Manipure
Annual Shareholders’ meeting of 14 May 2014
ASIA: BUILT SERENELY STRONG POSITIONS IN THE REGION
P E N SN°1 writing instrument brand in India
7,000 Employees
2 Manufacturingsites*
1 million points of sales
81 M€net sales in 2013,
App. + 10% growth
IFO margin23%
49
*7 factories
Annual Shareholders’ meeting of 14 May 2014
ASIA: BUILT SERENELY STRONG POSITIONS IN THE REGION
Rest of Asia
14countries
BIC® productsdistributed in
1 Writing instruments flag ship store in Shanghai
2Factories• Sationnery• Lighters end of 2015
Sources : FMI – 2014 World Economic Outlook
50
+6% à +10%
+2% à +6%
GDB growth rate in 2016
Annual Shareholders’ meeting of 14 May 2014
Governance
Annual Shareholders’ meeting of 14 May 2014
BOARD OF DIRECTORS COMPOSITION IN 2013
Independentdirectors
52
Edouard Bich
Representativeof MBD
Marie-Pauline Chandon-Moët
President of Ferrand SAS
John Glen
CEO of BuccleuchGroup
François Bich
Executive Vice-President
Pierre Vareille
CEO of Constellium
Frédéric Rostand
CEO ofSODIAAL
Elizabeth Bastoni
BGI Human ressources Director
Bruno BichChairman
Mario Guevara
Officer and Director
Marie-Henriette Poinsot
Director of StrategicPlanning
Options SAS
Annual Shareholders’ meeting of 14 May 2014
BOARD OF DIRECTORS
10 directors 6 meetings in 2013 93% rate of attendance
4
3
4
Independents
Women
Nationalities
Accounts and BudgetSettlement of full year and half year financial statements and review of quarterly results and 2014 budget
Corporate governanceCompensation of Corporate Officers and DirectorsSuccession plan of the Corporate OfficersAllocation of free shares
StrategyAnalysis of the strategy for the Group’s Shaver and Advertising and Promotionnal ProductsCello Pens acquisition finalizationSustainable Development ProgramProgress of the project for fuel cell
April 2013 : Factory visite of BIC Graphic in Minnesota (USA)
February 2014 :
meeting of Independent Directors53
Annual Shareholders’ meeting of 14 May 2014
COMPENSATION OF THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Compensation and Nomination Committee
(3 membersof which 2
independent Directors)
comparable companies Directors compensation evolution analysis
Analysis of individual performancesand of the company
Reflects Group’s priorities in variable remunerationboth short and long-term
Analysis of total reawardincluding all benefits
54
Principles
Annual Shareholders’ meeting of 14 May 2014
COMPENSATION OF THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER
100
75
ComparativeMedianSBF 120 Bruno
Bich
Mario Guevara
55
2013 total remuneration
Total compensation = Fixe + Variable + Performance shares
Chairman Chief Executive Officer
100 97
ComparativeMedianSBF 120
Annual Shareholders’ meeting of 14 May 2014 56
« Honor the past…
invent the future
People are
the cornerstone of
our philosophy »