BIC Group Presentation en MAY 2010

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BIC Group PRESENTATION 2010

Transcript of BIC Group Presentation en MAY 2010

Page 1: BIC Group Presentation en MAY 2010

BIC GroupPRESENTATI

ON 2010

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BIC: a simple vision – strong values

A simple vision Strong values

We offer simple, inventive and reliable choices for

EveryoneEverywhereEvery time

Ethics

Responsibility

Teamwork

Simplicity

Ingenuity

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BIC beginnings

Dec.1950 Marcel Bich launches the BIC® Cristal® ballpoint pen in France. The BIC® Cristal® pen is the first high quality ballpoint pen at an affordable price.

“BIC” is a shortened and easier recognized version of the “Bich” name.

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The BIC® logo

• The “BIC boy” that features in our logo, was created at BIC’s request by the French artist Raymond Savignac in 1961

• This schoolboy with a ball point head and a pen hiding behind his back, has become the emblem of the BIC® brand and all BIC® products

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BIC history – Geographical expansion

1950 : Marcel Bich launches BIC® Cristal® in France

1954 : BIC extends to Italy

1956 : BIC extends to Brazil

1957 : BIC acquires Biro Swan to enter the “Sterling” zone market (UK, Australia…)

1958 : BIC acquires Waterman Pen to enter the USA market Expansion in Africa and the Middle East

1959 : BIC acquires Ballograf to enter Scandinavian countries

1965 : BIC enters the Japanese marketBIC extends to Mexico

1995 : BIC enters Eastern and Central Europe

1997 : Expansion in Asia

2006 : BIC opens a subsidiary in Turkey

2009 : BIC acquires 40% of Cello Pens, n°1 in India for writing instruments

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BIC history – Product line expansion

1950 : BIC® Cristal® ball pen

1969 : BIC® Graphic (imprinted products)

1973 : BIC® lighter

1975 : BIC® shaver

1979 : Acquisition of Conté® (coloring and drawing products)

1981 : BIC® Sport products

1992 : Acquisition of Wite-Out® (correction products)

1997 : Acquisition of Sheaffer® (luxury fountain pen)

Acquisition of Tipp-Ex® (correction products)

2004 : Acquisition of Stypen® (school fountain pen)

2006 : Acquisition of Pimaco® (adhesive labels)

2007 : Acquisition of Atchison Ltd by BIC Graphic (bags)

2008 : BIC ® phone in France

Acquisition of Antalis Promotional Products

2009 : Acquisition of Norwood Promotional Products

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Products Brand…SBalanceSheet

Simple

Reliable

Inventive

At the right Price

Worldwide

leadership

Stationery10% market share

Lighters35% market share

Shavers20% market share*

of one-piece in USA and Europe

N°2

N°1

N°2

*one-piece shavers in major markets (US, Europe, Latin America)

126.2 M€ Free Cash Flow after acquisitions in 2009

305.3 M€ Net Cash

Position at the end of

2009

Our strengths

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BIC’s unique advantages

International workforce

Innovation

Distribution

Productivity

BIC® brand

9,695 people worldwide

3,2 million outlets spread over five continents, in more than 160 countries

24 factories

27% of Net Sales achievedwith new products, 1,5% invested in R&D*

Well-known throughout the worldfor quality and reliability and affordable prices for consumers

*2009

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Recognized brands to leverage

A high level of awareness* (100% in France & Greece, 97% in the UK, 98% in the USA & in Australia, 91% in Brazil, 98% in Mexico, etc.)

*: TNS Sofres - 2001

A quality brand

A well-known brand consumers feel close to

A brand that simplifies people’s lives

A brand that offers good value for money

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Fundamental BIC® product values

FUNCTIONAL

AFFORDABLE

UNIVERSAL

Offering everyone the opportunity to buy quality products at affordable prices is a priority for the BIC Group. Optimizing design, materials, manufacturing and various distribution channels helps the company realize this promise.

BIC® products are known and appreciated the world over for quality, affordability and ease of use. The ballpoint pen, the pocket lighter, the one-piece shaver are all part of the daily lives of millions of consumers. These products make BIC® one of the best known international brands

A BIC® product is designed to perform a specific function -- draw a line, produce a flame, shave a hair. Design & technology reflect the efficiency with which each product carries out its function. BIC® products make the consumer’s life easier.

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Strategy

Support core products

Meet consumers’ needs and desires through innovative products

Improve our quality & manufacturing efficiency

Leverage the brand

Expand our geographical presence

Capitalize on external opportunities and alliances

Integrate sustainable development as a key component

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Group management

Bruno Bich

CHAIRMAN OF THE BOARD

MARIO GUEVARACHIEF EXECUTIVE OFFICER

FINANCE

Jim DiPietro

HUMAN RESOURCES

François Eyssette

LEGAL

Marie-Aimée Bich-DufourSTATIONERY and SHAVERS

Ed Dougherty

LIGHTERS

François Bich

Benoît Marotte

STATIONERY

Nicolas Paillot

PROMOTIONAL PRODUCTS

NORTH AMERICA

Chris Mills

EUROPE

Billy Salha

LATIN AMERICA, OCEANIA, ASIA, MIDDLE EAST & AFRICA

Edgar Hernandez

Executive Vice-President

Executive Vice-President

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19%

44%

5%

32%

17%

17%

26%

40%

14%

59%

27%

2009 key figuresNet Sales

1,562.7 M€

Stationery

Lighters

Shavers

Other Products

2009 Net Sales

by category

Europe

MEAA

Latin America

North America,Oceania

2009 Net Sales

by geography

Shavers

Lighters

Stationery

2009 Income From Operations

by category(1)

IFO 216.0 M€

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Capital ownership As of December 31, 2009*

*Figures calculated from the latest available information.

Number of shares outstanding February 28, 2010: 48,582,392

37.1%Public

43.6% Bich Family,

including MBD(55.2% voting

rights)

0.6%Autocontrol12.0%

Silchester International

Investors

6.7%First Eagle Investment Management, LLC (ex.

Arnold and S. Bleichroeder Advisers, LLC)

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BIC technology

Manufacturing processes among the most sophisticated in the world today

Computer controlled manufacturing, assembly processes with high speed automated inspection and vision systems

Factory, Manaus, Brazil

BIC® Ecriture 2000, Marne la Vallée, France

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Stationery Each BIC® ballpoint pen can draw a line between 2 to 3 kilometers long.

Each day around the world, consumers

choose to buy

24 million

stationery products

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Historical and close

relationship with the

trade

Iconic products

Strong brands

Worldwide leadership positions

N°2 in North America

N°1 in Latin America

N°1 in Europe

Strong positions in

major market segments

N°1 in mechanical pencils

N°1 ball-pen classic

N° 1

in c

orre

ctio

n Consumer trust for more than 50 years

“A brand I grew up with” Innovation

24 million BIC stationeryproducts bought every day worldwide

More than 3m outlets worldwide

Stationery Consumer: “Quality @ a BIC price”

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Stationery Consumer – Positions in major market segments

BIC Estimate & Published Research – 2006*: together with Newell

N°1 in Ball Pen (17% market share)

N° 2 worldwide with 10% market share

N°1 in Europe(16% market share)

N°2 in North America(13% market share)

N°1 in Mechanical Pencils*(14% market share)

N°2 in Marking(8.0% market share)

N°1 in Correction(17% market share) N°1 in Latin America

(24% market share)

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More for your money… … more … … more innovation

BIC Stationery Consumer category in 2010

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Stationery Consumer – Strategy

1. A brand that consumers trust

2. Clear positioning

Quality @ a BIC price

Great value for money

3. Strong positions in key segments

4. Superior technical know-how to drive quality control and innovation

5. Global presence

6. Sourcing capacities

1. Grow in a market flat in mature countries

2. Answer to the increased competition from low-cost Asian manufacturers with inconsistent quality products

3. Build awareness of our innovations

4. Grow in value-added writing instruments

5. Adapt to the evolution different distribution networks (office product industry and retail channel)

Our strengthsOur challenges

Leverage strength of BIC® brand to grow share in all segments to levels achieved in our Classic Ball Pen core segment

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Lighters Each BIC® Maxi lighter can light up to 3,000 times

Each day around the world, consumers

choose to buy

5 million

lighters

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Integrated distribution network Market leadership

Estimated market shares (in value)

Pocket lighters in markets where BIC is present

Consumer preference Safety – Quality – Prevention & education

vs. market average

More than 50 automatic quality controls

• Dedicated Customer Support Teams in

all countries

• Largest distribution network

Lighters: N°1 branded lighter manufacturer

Brand awarenessUS Disposable Pocket Lighter

8%

10%

86%

Competitor B

Competitor A

BIC

35%

<30%

> 60%> 60%

Europe worlwide North America Latin America

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Lighters: towards more value-added products

Maxi

Slim ElectronicMini

Sleeves

Cases

Megalighter™New Generation

Utility lighters

• A fast growing market linked to leisure (candles, BBQ, …)

• Almost 30% market share in the US

• Strong success in Europe

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BIC Lighter category in 2010

Pocket Lighter Sleeves Pocket Lighter Case

Utility Lighter Pocket ashtray

Focus on added-value products and innovation

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Lighters – Strategy

Strengthen our position as the only branded lighter with worldwide strengths

Accelerate development of value-added lighters

1. Our brand

2. Quality

3. Our safety programs

4. Our distribution

5. Our technical know-how

1. Acceleration of the trend of tobacco consumption

2. Promote the extension and enforcement of mandatory ISO 9994 International safety standards

3. Increase awareness of safety rules among distributors and consumers

Our strengthsOur challenges

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ShaversA BIC Comfort 3® shaver is good for an average week of shaving

Each day around the world, consumers

choose to buy

10 million

shavers

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BIC Shaver category in 2010

Continue to offer innovative affordable products BIC® Soleil® Mini

1USD

Sim

pli

city

Tech

no

log

y

Strengthen our high end one-piece product offer Comfort/Flex 4 for men in Europe

and the U.S. BIC® Bella 4 blade in Europe

and BIC® Soleil Bella™ 4 blade shaver in the U.S.

Leverage the success of the unique BIC Easy BIC® Soleil® Easy in Europe BIC® Hybrid Advance™ in the U.S.Continue to support our core access

products (single, twin and 3-blade)

Leverage our value proposition with a complete range of products

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Shavers - Strategy

1. A complete and successful range of one-piece triple-blade products for men (Comfort 3™ Advance™, Comfort 3™…)

2. A strong franchise in the women’s segment with the BIC® Soleil® Brand

3. Products offering a better value

4. Great value for money positioning

1. A very competitive environment in both one-piece and refillable markets

2. More and more new product introductions in the market at accelerated pace withimproved features & performance

3. Continue to balance top-line growth and profitability

Our strengthsOur challenges

Strengthen our foundation in one-piece by leveraging the BIC® Soleil® brand

Gain a foothold and continue to build our position in the refillable market segment

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Promotional products 5,500 items managed

Each day around the world, companies

choose to buy

4 million

advertising and promotional products

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Promotional Imprinted Products – A 4th business category

1979-2006Organic product diversification

Strategic decision to accelerate growth

2007-2009Acceleration of product diversification through external growth :

US based Promotional totes, bags, coolers and backpacks supplier

European supplier with a wide range of distributors and a complete range of non-imprinted products (watches, agendas, gadgets and original business gifts, …). Specialized in sourcing.

US based supplier of a wide range of promotional products (calendars, pens, watches, bags, agendas, gadgets and original business gifts, …). Strong knowledge in sourcing.

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BIC Sport

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BIC® around the world

07:00am : Times Square, New York

10:30am : Argentine

8:00pm : Meaux, France

11:00am : Meru, Kenya

01:00pm : Pakistan

03:00pm : Sri Lanka

08:00am : Côte d’Ivoire

3,2 million outlets spread over five continents, in more than 160 countries

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Recent BIC communication campaigns

LATIN AMERICA

Advertising campaign in the street for the BIC Comfort 3™ shaver in Ecuador.

Press Advertising for all product categories.

Press advertising for the performance of the BIC® lighter in European countries.

TV commercial to launch the TIPP-EX® Easy Refill in Europe, and for the 50 years of the brand.

TV commercial for the BIC Comfort 3™ shaver in Turkey.

OCEANIA

Advertising campaign with local sporting hero in New-Zealand.

Advertising campaign inc. TV spot in Oceania, Express Yourself.

Press Advertising for Twin Lady shaver in Madagascar.

EUROPE US

ASIA

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Sustainable development features in the top five Group objectives:

“Transform our commitment to Sustainable Development into eco-solutions that will deliver

a true competitive advantage for the Group”Mario Guevara

• A barometer with indicators and 3 year objectives • Major work undertaken in the development of new materials and green products

Sustainable development Integrated as a key component of Group strategy

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A range made fromnew materials

Light products,nothing superfluous

Long-lasting products

A measured environmental

impact

Sustainable developmentThe key points of the BIC approach

BIC® EcolutionsTM range

Raw Raw materialmaterial

ProductionProduction

DistributionDistribution

End of lifeEnd of life

BIC® Cristal® 2.8 g material per km of writing

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