BIC Company

By: Graham Davis

Table of Contents

• Company History• Product Mix• Stock Information• Company Financials

• Financial Charts (Euro/USD)

• BIC Disposable Lighter (history)• Product Breakdown• Product Financials

Company History

• Founded in 1945 (Clichy, France)• Founders: Marcel Bich and Edouard Buffard• Originally manufactured fountain pen and

mechanical pencil parts• Products are: Simple, Inventive, Reliable, and

for Everyone, Everywhere• Total Employees: 10,455

• 9,198(Full-Time) 1,257(Part-Time)

Product Mix

• Stationary• Ballpoint Pens, Pencils, Highlighters, Ect.

• Lighters• Classic, Electronic, Multipurpose, Cases

• Shavers• Men and Women's Disposable Razors

• Other Products/Promotional Products• Batteries, BIC Phone, Pantyhose

Stock Information

• Outstanding Shares: 48,245,532 (2012)• 48,341,785 (2010) 47,565,299 (2011)

• Net Income per Share: $4.29, $5 (2010,2011)

• Dividend Per Share: $1.90, $2.20 (2010,2011)

Financial Information (USD)(2010/2011/2012 9 Months)

Financial Chart (Mil. Euro)

Financial Chart (Mil. USD)

Net Sales Geographic

• Europe• 29% (2010) 28% (2011)

• North America• 42% (2010) 40% (2011)

• Developing Market• 29% (2010) 32% (2011)

Net Sales By Category

• Stationary• 32% (2010-12)

• Lighters• 26% (2010) 28% (2011) 28% (2012)

• Shavers• 17% (2010) 18% (2011) 18% (2012)

• Other• 5% (2010-12)

• Advertising/Promo• 20% (2010) 17% (2011) 17% (2012)

Net Sales By Category

BIC Disposable Lighter• Started 1972

• Uses high-tech manufacturing process

• It produces lighters in four factories located in France, Spain, the United States and Brazil.

• 5 Million lighters manufactured daily

• Each lighter undergoes more than 50 automated quality and security test

BIC Factory

• BIC factory operatione– Manufacturing of primary parts– Sub-assembly– Automatic gas filling– Assembling, Controlling, and packaging

• 3 Principles of Lighter Design• Saftey&Quality, Consumer Friendliness, Value for money

Lighter ComponentsGas Reservoir• 1)Body-plastic• 2)Base-plastic• 3)Ball-metalLighting mechanism• 4)Flint spring• 5)fork spring• 6)valve-steel• 7)jet-steel• 8)flint-flint• 9)Fork-pastic/steel• 10)Spark Wheel-serrated steelSafety• 11)Hood-steel• 12)Guard-steel

Raw Materials Used/Cost %

• Plastics- 39%• Delrin is a high grade plastic resin

• Metals-23%

• Ink and Solvents-6%

• Packaging and Other-32%

Lighter Financial Information

• Total Units Produced (Billions):• 1.224 (2010) 1.318 (2011)

• Sales Revenue (Million USD):• 612.78 (2010) 651.01 (2011) 518.98 (2012)

• Variable Cost (Million USD)• 391.52 (2010) 396.37 (2011) 316.71 (2012)

• Total Contribution Margin (Million USD)• 221.25 (2010) 254.65 (2011) 202.26 (2012)

• Contribution Margin %• 36.1% (2010) 39.1% (2011) 38.97%

Per Unit Breakdown 2011

• Revenue Per Unit: .4939

• Variable Cost Per Unit: .3007Materials-40% (.12028)Labor-25% (.075)Manufacturing Overhead-35% (.105)

• Profit Per Unit: .1932

Materials Cost Per Unit

• Plastics: .047

• Metal: .028

• Ink: .007

• Packaging: .038

Overview

BIC lighters account for28% of the companies revenue

Post a consistent 30-40% Contribution margin as percent of sales

Gross Profit for lighters 2011: 199.8 Million Euro

Refrences

• http://www.bicworld.com/

• http://www.bicworld.com/en/finance/index/