Presentation Redon factory visit 24JUNE2014 FINAL · Redon factory visit – 24 June 2014 Redon...
Transcript of Presentation Redon factory visit 24JUNE2014 FINAL · Redon factory visit – 24 June 2014 Redon...
Redon factory visit – 24 June 2014
Redon factory visitPresentation
Redon factory visit – 24 June 2014
IntroductionFrançois Bich
Redon factory visit – 24 June 2014
HISTORY
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1960… Marcel Bich identifies lighter as a potential new categoryCRICKET launches the first non-refillable lighters
1965… FEUDOR follows and launches its own model
1970… Acquisition of Cricket by Gillette
1971… BIC Group acquires FLAMINAIRE, a French company operating in Redon(France), gaining its expertise in gas lighters and safety.Development of J1 model BIC® lighters.
At the end of 1972… BIC® launches mass production of lighters in the Redonfactory.
BIC® lighters get an immediate success and have remained successfulthanks to their flame quality, lighting capacity and shape, which fitsparticularly well in the hand.
Redon factory visit – 24 June 2014
THE BIC® LIGHTER
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QUALITY SAFETY / QUALITY EFFICIENCY- Optimum level of quality safety applied to each and everylighter- Offer optimum quality efficiency to consumers
CONSUMER FRIENDLINESS- Maximum comfort in holding the lighter and use
VALUE FOR MONEY- Ratio between the number of lights and the price- Ratio between the number of lights compared to the sizeof the lighter.
1
2
3
Redon factory visit – 24 June 2014
2014 MANUFACTURING FOOTPRINT
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France
Spain
Brazil
USA
Redon – BJ75 (1972)J26 / J25 / J23 (Flint)
Tarragona (1973)J26 / J25 (Flint)
J38 / J39 (Electronic)
Milford (1974)J26 (Flint)
Manaus (1974)J6 / J5 (Flint)
� BIC manufactures and sells 6 million lighters every day worldwide*
� BIC has produced more than 30 billion lighters over the last 40 years
China
Operational
in 2015
* on 220 days
Redon factory visit – 24 June 2014
1.4billion units
BIC® lighters produced
2013 KEY FIGURES
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6million
BIC® lighters produced and bought every day*
557.8 million euros net
sales in 2013
37.0%Normalized IFO margin in 2013
cc. 48%worldwide market
share**
4factories
* 220 days** Outside Asia
+7.0% on a
comparative basis
Redon factory visit – 24 June 2014
BIC® POCKET LIGHTER VOLUME AND VALUE TRENDS
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Source: BIC
1,098 1,130 1,141 1,087 1,1151,224
1,318 1,361 1,417
2005 2006 2007 2008 2009 2010 2011 2012 2013
Net sales change on a comparative basis
+12.5% +5.6% +3.7% +0.8% +5.3% +11.6% +8.6% +4.3% +7.0%
VOLUME (in billion units)
Redon factory visit – 24 June 2014
BIC® lighter categoryFrançois Clément-Grandcourt
Redon factory visit – 24 June 2014
The pocket lightermarket
Redon factory visit – 24 June 2014
-
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
-3.0% -2.9%-2.1%
2013 2017e
TOBACCO SALES AND NUMBER OF SMOKERS TRENDS 2013 / 2017
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Source: Euromonitor – volumes in mm sticks – cigarettes & Roll Your Own
% CAGR 2013/2017
Billion ofcigarette
sticks
Asia EasternEurope
LatinAmerica
Middle Eastand Africa
WesternEurope
TOBACCO SALESWorldwide expected growth (CAGR): +0.8%
NorthAmerica
NUMBER OF SMOKERS Worldwide expected growth (CAGR): +0.6%
872,608893,577
Source: Euromonitor - in thousand – 80 countries
+1.8%
-1.1%
+1.0%
-0.4%
-1.6%
+1.2%
North America
Eastern Europe
Middle-East and Africa Western Europe
Latin America
Asia
+2.1% +2.5%
-0.5%
Redon factory visit – 24 June 2014
USAGES OF A LIGHTER
15%
22%
63%
Others*
Candles
Cigarettes
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Source: Disposable Pocket Lighters Awareness and Usage Study - January 2014 – USA* Grill, other combustables…
37% of overallusages in volume are dedicated to
other usages than cigarettes
Redon factory visit – 24 June 2014
World Excl. Asia
Asia
WORLD LIGHTER MARKET - VOLUMES VS. VALUE
BIC estimates for 2012 – Retail prices
Volumes: 11.8 billion units Value: 3.6 billion euros
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32%
68% 63%
37%3.8 billion units
8.0 billion units
1.3 billion euros
2.3 billion euros
Redon factory visit – 24 June 2014
Market shares in units outside Asia Market shares in value outside Asia
Asian manufacturers
BIC
Other brandedlighters
WORLD LIGHTER MARKET - KEY PLAYERS OUTSIDE ASIA
Source : BIC estimates for 2012 – Retail prices
56%cc.
35%
9%
34%
cc.
48%
18%
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Redon factory visit – 24 June 2014 - 14 -
BIC, CRICKET AND CLIPPER: 3 INTERNATIONAL BRANDS
WORLWIDE*cc.48% 12% 6%
BIC Cricket Clipper
LATIN AMERICA
>65% 5% 0%
AFRICA
15% 0% 0%
EUROPE
<30% 14% 7%
ASIA
4% 3% 0%
Source: BIC estimates for 2012 (Market shares in value)* Excluding Asia
NORTH AMERICA
>65% 6% 2%
OTHERS
cc.34%
<27%
<30%
>49%
85%
93%
Redon factory visit – 24 June 2014
OVERVIEW OF MANDATORY SAFETY REGULATION AROUND THE WORLD
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1998
ISO : 1989CR : 1995
2000
2003
CR : 1992ISO : 1997
2003
2004
20052011
2006
2007
2010
20062003
1994
1997
Child resistant
ISO 9994 and Child Resistant
ISO 9994
1999
Redon factory visit – 24 June 2014
Africa Asia EuropeLatin
America*North
America*
ISO 9994 conform lighters
Low quality lighters
Matches
* real enforcement of the regulation
LONG TERM VIEW OF LIGHTING DEVICES WEIGHT
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Redon factory visit – 24 June 2014
BIC® lighters
Redon factory visit – 24 June 2014
BIC® LIGHTER KEY FIGURES OVER THE 5 PAST YEARS
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+5,3%
+11,6%+8,6%
+4,3%+7,0%
2009 2010 2011 2012 2013
34,0% 36,2% 38,9% 37,4% 37,0%
2009 2010 2011 2012 2013
AverageNIFO36.7%
Net sales change on a comparative basis
Normalized IFO margin
Redon factory visit – 24 June 2014
BIC® LIGHTER MARKET SHARES
Estimated market shares (in value)
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cc. 48%
< 30%
> 65% > 65%
Worldwide(Exlc. Asia)
Europe North America Latin America
Source: BIC estimates
Redon factory visit – 24 June 2014
BIC® LIGHTER RETAIL PRICE POSITIONNING
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Source: BIC (Reference J26 for Europe, USA, Brazil and J3 for China)
1,32 €
$1,58
1,28 €
0,36 €
1,13 €
$0,72
0,98 €
0,42 €
0,73 €
0,12 €
Europe USA Brazil China
BIC Other compliant lighter Non-compliant lighter
Redon factory visit – 24 June 2014
BIC® LIGHTER RETAIL PRICE PER FLAME
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1,0 1,0 1,0 1,0
1,4 1,41,2
1,5
1,8
0,7
Europe USA Brazil China
BIC Other compliant lighter Non-compliant lighter
Based Indice 1
Source: BIC (Reference J26 for Europe, USA, Brazil and J3 for China)
Redon factory visit – 24 June 2014
BIC® BRAND AWARENESS
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Source: Internal brand awarness study conducted on 12,000 consumers in 2011
65%
78%
93% 93%
24%
54%
95%
Worldwide Europe NorthAmerica
LatinAmerica
Asia Middle-Eastand Africa
Oceania
Redon factory visit – 24 June 2014
BIC® SLEEVES: A GROWTH CONTRIBUTOR
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Source: BIC (Off Invoice sales)
Sale of BIC® lighters
Sale of BIC® sleeves
CAGR 2010-13+13.7%
+7.9%
Sleeves represent 20% oflighter category net sales
2010 2011 2012 2013
CAGR 2010-13+7.9%
Redon factory visit – 24 June 2014
Disclaimer
This document contains forward-looking statements. Although BICbelieves its expectations are based on reasonable assumptions, thesestatements are subject to numerous risks and uncertainties.A description of the risks borne by BIC appears in section “Risks andOpportunities” of BIC 2013 Registration Document filed with the Frenchfinancial markets authority (AMF) on 26 March 2014.
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