GROUP PRESENTATION FOR INVESTORS March 2011

GROUP PRESENTATION FOR
INVESTORS
March 2011
Agenda (1/2)
Cello Pens
28
4
India's writing instrument market overview
29
History and definition
53
BIC Today
5
India's pen market
30
A large and growing business
54
Markets and categories
6
A cost effective advertising medium
56
International footprint
7
The Pocket Lighter market
A structured BUT fragmented industry
58
Capital Ownership
8
Overview of safety regulation around the world 36
BIC APP
62
Strategic assets
9
63
10
38
BIC APP Highlights and key figures
Key Strengths
Long term view of safety regulation impact
on lighter sales
2010 Key Figures
66
11
2010 Key Figures
39
BIC APP Today
67
Use of cash policy
12
Strategy
40
Return to shareholders
13
N°1 branded lighter manufacturer
41
2011 Group perspectives
14
Toward more value-added products
42
Measure…
69
BIC in 2011
15
Lighter category in 2011
43
… to eco-design
70
Ambitions for the next 3 to 5 years
18
French Ecolabel NF Environnement
71
An exemple of ecodesign
72
Glossay
73
2011 Agenda
74
Contact
75
Group Overview
History
Manufacturing network
Stationery
The consumer stationery market
20
2010 Key Figures
23
Strategy
24
"Quality @ a BIC price"
25
BIC positions in major market segments
26
Stationery category in 2011
27
Lighters
32
Shavers
The shaver market
45
2010 Key Figures
47
Strategy
48
Quality and innovation at a reasonable price
49
3&4 Blades one-piece Market shares
50
Shaver category in 2011
51
Advertising & Promotional Products
Sustainable Development
2
Group
Overview
History at a glance
1950…Marcel Bich launches the BIC® Cristal, the first high quality ballpoint pen at
an affordable price.
1954…The group starts its international expansion in Europe (Italy, UK, …), Latin
America (Brazil) and North America (USA)
1969…first step in Advertising & Promotional Writing Instrument (BIC Graphic)
1973 : First BIC lighter
1974 : First BIC one piece shaver
®
®
Since the beginning, on-going product development
(correction, luxury fountain pen, school fountain pen, imprinted promotional bags, …)
and geographical expansion (Latin America, Eastern and Central Europe, …)
4
2010 Normalized
Income From
Operations
9,313 employees
22 factories on 4 continents
2010
NET SALES
BIC today
Every day,
24 million BIC stationery products
5 million BIC lighters
10 million BIC shavers
5 million BIC Advertising and
€1,831.5 m
2005 – 2010
growth
average on a
comparative
basis: +4.8%
€314.9
2005 – 2010
Average
Normalized
IFO* margin:
16.0%
€4.29
2005 – 2010
EPS* CAGR:
+5.5%
®
2010 EPS
®
®
Promotional Products are bought in
160 countries
2010Free Cash
Flow
®
€205.0m
2010
FCF / net
sales:
11.2%
5
Markets
FY 2010 sales breakdown by categories
FY 2010 sales breakdown by markets
Other
consumer
Products
Advertising
&
Promotion
Advertising &
Promotional
Products
One-piece
shavers
N°2
in Europe
& USA
20%
80%
5%
17%
26%
Consumer
Goods
N°2
worldwide
20%
20%
32%
Lighters
Stationery
N°1
worldwide
N°2
worldwide
6
International footprint
2010 sales breakdown by
geography
1950 : France
Europe
Developing
Markets
1954 : Italy
1956 : Brazil
1957 : “Sterling” zone (UK, Australia…)
29%
29%
29%
29%
1958 : USA, Africa, Middle East
1959 : Scandinavian countries
1965 : Japan, Mexico
42%
42%
1995 : Eastern and Central Europe
1997 : Expansion in Asia
North America
2009 : India (partnership with Cello)
7
Capital ownership
As of February 15, 2011*
Bich Family
42,7% (55% voting
rights)
Public
39,6%
First Eagle LLC
2,9%
Fondation de
France
3,3%
Silchester
Blackrock International Treasury stocks
Investors
5,0%
1,0%
5,5%
*Figures calculated from the latest available information.
8
Strategic assets
 Quality and Value product positioning
 A large and diversified product portfolio aimed at answering consumers’
needs:
 Innovation: 21% of net sales through new products in 2010
 Recognised brands
o Historical international footprint
o Present in more than 160 countries
o 29% of 2010 net sales in developing countries
 An international, complete and solid distribution network
 On-going and sustained productivity improvement policy.
 A solid balance sheet and a clear use of cash strategy
9
Key strengths
Products
Brand…S
Worldwide
leadership
N°2
Simple
Reliable
Inventive
At the right Price
Stationery
cc.10%
market share
N°1
Lighters
43% market share**
222.4€
Free Cash
Flow after
Acquisitions
in 2010
N°2
Shavers
20% market share*
of one-piece
in USA and Europe
N°2
*one-piece shavers in major markets (US, Europe, Latin America)
**: Outside Asia
Balance
Sheet
Advertising &
Promotional
Products
397.1 M€
Net Cash
Position at
the end of
2010
10
Manufacturing network
11
Use of cash policy
2006
1
Focus on
Strategic
acquisitions
2009
2009
APP
Cello Pens
- Promotional
products
- Europe
- Writing
Instruments
- India
Norwood
Promotional
Products
- USA
2007
PIMACO
2009
Atchison
Products
- Promotional
products
- USA
-Adhesive
labels
-Brazil
Continue to look for strategic acquisitions, although
focus will be to succeed in leveraging recent moves
2
In euros
1,90
1,30
Dividend
Regular
dividend per
share
1,40
1,35
0,90 1,00
44% payout*
1,00
in 2010 based on
2004
2005
2006
Dividend per share
3
1,35
1,15
2007
2008
2009
2010
2010 results
Special Dividend
In million euros
71,6
49,3
39,9
Share
Buy-back
25,7
1,9
2005
*: based on ordinary dividend
42
2006
2007
2008
2009
2010
12
Return to shareholders
In million euros
Free cash flow*
Share buyback
Ordinary dividend
Exceptional dividend
Acquisition
182
308
3
27
31
63
1
13
49
43
161
160
58
129
86
71
49
1
179
64
145
66
99
72
68
49
40
26
2
2003
2004
2005
2006
2007
2008
2009
*: Cash from operating activities – cash from investing activities (before acquisition)
13
2011 Group perspectives
Stationery
 No significant recovery anticipated for 2011 in developed markets, with on- going
negative impact of the high level on unemployment rates on Office Products
Channel
Consumer Business
 Continued strong growth in developing markets
Lighters
 Flat to slight decline in mature markets (evolution of cigarette consumption and
regulation)
 Continued growth in developing markets
Low-single digit growth is anticipated in developed markets
Shavers
 Strong brand support activity likely to continue in the refillable segment (tough competition
between Gillette and Energizer)
 In the one-piece segment, no major new competitive launches have been announced, suggesting
promotional pressure may be the main focus for the next year
Strong growth in developing countries
 Consumer trade-up to 3-blade products is expected to continue
Advertising &
Promotional
Products
 As in 2010, sales performance of the Advertising and Promotional Products
industry in North America and Europe will be notably impacted by the level of
visibility companies will have on global economic trends
14
BIC in 2011
BIC APP
integration plan
on track
Benefits from the
2009 restructuring
Increase
in brand support
Enhanced
positions in fast
growing markets
Market shares
gained in all
consumer
business
categories
Leverage 2010
achievements…
15
BIC in 2011
…to continue to grow
in fast growing markets…
Eastern
Europe
Latin
America
Africa
2% of total
net sales in 2010
MiddleEast
Oceania
& Asia
“Developing markets”
29% of total net sales in 2010
16
BIC in 2011
…and generate profitable growth
 Consumer Business
• Continue to strengthen our position through distribution and market share gains
• Successfully launch innovative new products
 Advertising and Promotional Business
• Finalize BIC APP integration
• Deliver improved normalized IFO margin despite low sales growth
 Protect Gross margin from raw material prices volatility
(improvement of manufacturing efficiency and reasonable targeted prices
adjustments when appropriates)
 Invest in innovation and brand support
17
Ambitions for the next 3 to 5 years
Grow faster than our markets thanks to our Quality & Price positioning
Continue to improve our operational efficiency
Continue to monitor working capital
Be ready to seize external growth opportunities through bolt-on and strategic
acquisitions, while maintaining a sound balance sheet
Annual Organic Growth*
Normalized IFO margin
Consumer
business
Between 2% and 4%
Between 15% and 18%
Advertising
& Promotional
Products
Between 5% et 10%
Between 8% et 12%
*: net sales growth at constant currencies and bolt-on acquisitions
18
Stationery Consumer
The consumer stationery market (1/3)
Total worldwide consumer stationery market = 6.7 billion Euros in 2009
Key Geographical Markets (breakdown in value)
Glue
Rest of the World
Europe
India
Breakdown by main segment (in value)
13%
13%
Correction
Coloring
18%
18%
2%
7%
7%2%
14%
14%
7%
7%
China
20%
20%
Markers
14%
14%
Japan
6%
6%
56%
56%
16%
16%
22%
22%
6%
6%
USA
South and Latin
America
All market shares are based on 2009 estimated suppliers net sales figures
Mechanical
Pencils
Pens
(Ball Pens: 24% / Rollers: 5%)
20
The consumer stationery market (2/3)
2006-2007 market trends by geographies (in value)
Market growth
14%
12%
China
10%
8%
India
Eastern
Europe
6%
Latin
America
4%
Western
Europe
2%
-1%
Japan
North America
& Oceania
Size in million euros
-3%
BIC Estimate & Published Research - 2007
21
The consumer stationery market (3/3)
Total worldwide consumer stationery market = 6.7 billion Euros in 2009
Breakdown by main supplier (in value)
BIC
cc.10%
Pilot
6%
New ell
Rubbermaid
13%
 Mitsubishi: 3%
 Pentel: 3%
 Crayola: 3%
 Zebra: 3%
 Schwan-Stabilo: 2%
 Sakura: 1%
BIC Estimate & Published Research – 2009 – Manufacturers figures –Pens, pencils, markers, coloring, correction
Others
57%
22
2010 BIC Stationery Consumer Key Figures
2010
YoY Change
YoY Change at
constant
currencies*
Net Sales
580.7
+14.0%
+6.7%
Income from
Operations
69.3
+59.9%
BIC Group
In million euros
Normalized* IFO
Margin
* see glossary
12.1%
23
Stationery Consumer – BIC Strategy
Generate profitable growth through
 increasing distribution and visibility
 supporting classic products by constantly improving their quality
 fostering innovation by launching new products with higher
value added
 further developing our presence in fast growing countries
 permanently listening consumers to bring them new and
improved products
24
Stationery Consumer: “Quality @ a BIC price”
More than 3m
outlets
worldwide
Historical and
close
relationship
with the trade
Iconic
products
Strong
brands
Worldwide
leadership
positions
Innovation
Strong positions
in major market
segments
Consumer trust
for more than 50
years
24 million BIC stationery
products bought every day worldwide
25
Stationery Consumer
BIC positions in major market segments*
N°1 in Europe
(18% market share)
N°1 in Ball Pen
(19% market share)
N°1 in Mechanical Pencils
(17% market share)
N° 2 worldwide
cc. 10% market share
N°2 in the U.S.
(14% market share)
N°2 in Marking
(8% market share)
N°1 in Correction
(19% market share)
* BIC Estimates– 2009
N°1 in Latin America
(22% market share)
26
BIC Stationery category in 2011
Innovation…Quality…Price
27
Cello Pens
PENS
The leading Indian writing instrument brand
>35% share of the
Appr. 5,000 employees
Indian Pen market
90% unaided
1 bn pens per year
awareness
(2 industrial sites )
The widest distribution network in India
Strong growth - High Profitability
Approximately 30% FY07-09 EBIT margin
Cello Pens are distributed
nationwide through
 731,000 outlets all
across India
 a network of 42 superstockists and 4,200
distributors
Revenue (INR Million)
4,100
2,300
12%
02-03
sC
ale
s
s
ear
5y
R
AG
07-08
28
India’s writing instrument market overview
Total writing instruments: ~ INR 28billion
(440 million Euros)
Total stationery: ~ INR 90billion
(1.4 billion Euros)
Pencils
Pens
Writing
Instruments
63%
63%
31%
31%
79%
79%
15%
15%
6%
6%
6%
6%
Others
Paper
and Notebooks
63.6 INR = 1 euro (January 20, 2009)
Others
Mid to high-single digit annual growth
29
India’s writing instrument market overview:
focus on pens
Total pen market: ~ INR 22billion
Low but increasing
per capita pen consumption
Highly fragmented distribution network
Modern
Retail
cc. 17
General
Stores
24%
24%
5%
5%
Stationery
25%
25% Shop
cc.3
India
US
Retail price point
12%
16%
Traditional
"Mom &Pop" stores
46%
46%
A market leader with market share twice
the nearest competitor
10%
Lexi, Flair, Linc, Add
Pens, Montex, GM Pens,
Luxor, Today’s, Rotomac
< 5 INR
37%
PENS
INR 5-10
INR 10-15
> 15 INR
63%
62%
Cello Pens Estimate & Published Research – 2007 – Retail value
30
Lighters
The pocket lighter market
Volumes vs. value
Value: 3.1 billion euros
Volumes: 10.6 billion units
29%
29%
World
Excl. Asia
Asia
71%
71%
35%
35%
65%
65%
BIC estimates for 2009 – Retail prices
32
The pocket lighter market
Flint vs. electronic
Value: 3.1 billion euros
Volumes: 10.6 billion units
World
excl. Asia
Flint
22%
22%
25%
25%
World
excl. Asia
Electronic
7%
7%
28%
28%
4%
4%
55%
55%
Asia
Electronic
49%
49%
10%
10%
Asia Flint
BIC estimates for 2009 – Retail prices
33
The pocket lighter market
Key players outside Asia
Market shares in value outside Asia
Market shares in volumes outside Asia
15%
15%
Asian
manufacturers
18%
18%
39%
39%
51%
51%
BIC
34%
34%
Other branded
lighters
BIC estimates for 2009 – Retail prices
43%
43%
34
The pocket lighter market
Retail Price positioning
Index compared to
pocket lighter average
retail price
BIC Lighter
1.0
1.0
0.9
0.5
USA
Asian Lighter
1.4
1.3
1.2
Average
1.0
0.5
Europe
Latin America
BIC estimates for 2009 – Base = Average Retail Selling Prices
35
Overview of safety regulation around the
world - ISO 9994*
2000
1989
2006
H1 2011
2005
2004
1997
2003
1998
2010
2007
2003
2003
*: mandatory
2006
36
Overview of safety regulation around the
world - Child Resistant*
1995
2006
H2 2011
1994
1992
1997
1999
*: mandatory
37
V alue sales
Long term view of safety regulation impact
on lighter sales
Africa
Asia
Europe
Latin
America*
North
America*
ISO 9994
conform
lighters
Low quality
lighters
Matches
Time scale
*: real enforcement of the regulation
38
2010 BIC Lighter Key Figures
2010
YoY Change
YoY Change at
constant
currencies*
Net Sales
480.8
+20.5%
+11.6%
Income from
Operations
173.6
+35.8%
Normalized IFO
Margin
36.2%
BIC Group
In million euros
* see glossary
39
BIC Lighter – Strategy
strengthen its position as the only lighter brand
with worldwide strengths
 by promoting the extension and the enforcement of international
safety standards
 by accelerating the development of value-added products
(sleeves, cases and utility lighters).
40
BIC Lighter
N°1 branded lighter manufacturer
Consumer preference
Safety – Quality – Prevention & education
Brand awareness
US Disposable Pocket Lighter
BIC
Competitor A
86%
vs. market
average
10%
More than 50 automatic quality controls
Competitor B
8%
Market leadership
Estimated market shares
(in value)
> 60%
Integrated distribution network
> 60%
43%
• Dedicated Customer Support Teams in
all countries
<30%
• Largest distribution network
Europe
worlwide
North America
Pocket lighters in markets where BIC is present
Latin America
41
BIC Lighter: towards more value-added products
Megalighter™
New Generation
Cases
Maxi
Sleeves
J3
Mini Electronic
42
BIC Lighter category in 2011
Safety…Quality…Price
Pocket Lighter Sleeves
Pocket Lighter Case
Utility Lighter
43
Shavers
The shaver market
Total wet shave market in 2009:
~ 10 billion euros
Wet shave market CAGR Value
Growth 04-09
2.1%
Double edge
One-piece
1.3%
1.2%
9%
9%
0.9%
35%
35%
0.1%
-0.3%
56%
56%
Disp
System
Total
Refillable
Europe
US
45
The shaver market
Market evolution towards more value-added products (in value)
97%
Western
Europe
USA
84%
90%
67%
65%
60%
One-piece / Single and Tw in
One-piece / Single and Twin
50%
One-piece / Triple & Quad
One-piece /Triple & Quad
40%
35%
33%
20%
10%
3%
2001 2002 2003 2004
2005 2006 2007 2008 2009
2001
2002
2003
2004
2005
2006
2007
2008
2009
46
2010 Shavers Key Figures
2010
YoY Change
YoY Change at
constant
currencies*
Net Sales
307.8
+14.5%
+7.6%
Income from
Operations
41.9
+38.4%
BIC Group
In million euros
Normalized IFO
Margin
* see glossary
14.2%
47
Shavers - Strategy
Strengthen our foundation in one-piece by leveraging
the BIC® Soleil® brand through
 A complete and successful range of one-piece three and four -blade
products for men (Comfort 3™ Advance™, Comfort 3™,Comfort 4 ™
and Flex 4 ™ …)
 A strong franchise in the women’s segment with the BIC® Soleil®
Brand
 Products offering a better value
 Great value for money positioning
48
Shavers: quality and innovation
at a reasonable price
3&4 blades women One-piece – US (USD)
2,19
2,16
1,99
Venus Disposable
Quattro Disposable
BIC Bella 4B
1,64
1,49
1,47
1,37
1,11
0,87
0,74
Sensor 3 / Daisy 3
Simply Venus
Xtreme 3 Comfort +
BIC Soleil Original
Bic Simply Soleil *
Private Label
Bic Silky 3 *
Women’s Refillable – US (USD)
Venus System
2,37
Quattro System
2,36
Non promoted price per volume – Sep 2010
* Estimated Price for New product 2011
3 blades men One-piece – France (€)
2,26
Mach 3
1,63
Bic Comfort 4
1,21
1,18
1,17
Xtreme 3
Bic Comfort 3 Advance
Sensor 3
Bic 4 Flex *
Private Label
Bic 3 Flex*
Blue 3
Bic 3
0,95
0,87
0,76
0,76
0,48
Average price per volume – Aug 2010
* Estimated Price for New product 2011
• A complete and well pricepositioned range of one-piece
triple-blade products for men
• A strong franchise with products
offering a better value in
the women’s segment
49
3&4 Blades one-piece Market shares
Volume market share
Gillette
Value market share
Schick
BIC
Private Labels
Others
34%
31%
26%
23%
21%
USA
23%
18%
13%
7%
5%
34%
41%
29%
27%
Europe
31%
10%
1%
19%
7%
3%
Source: IRI Full Year 2010 vs. Last 52 weeks ending January 9, 2011 / USA
IRI Nielsen CMR Full Year 2010 vs. Full Year 2009 / France, Italy, Greece and Spain
50
BIC Shaver category in 2011
Value…Performance…Innovation
7 new products
in 2011
Strengthened high performance movable blade
one-piece product offer
 BIC® Comfort/Flex 4 for men
 BIC® Bella 4 blades for women
Support our core access products (single,
twin and 3-blade)
Technology
Simplicity
 BIC® Flex 3 Advance for men
 BIC® Flex 4
1USD
Continue to leverage the success of BIC
Hybrid shavers
 BIC® Soleil® Easy for women
 BIC® Easy & BIC Hybrid Advance™ for men
51
Advertising & Promotional Products
Advertising and Promotional Products
History and definition
2010
Items used
used to
to advertise
advertise and
and promote
promote aa product,
product, aa service
service or
or aa company
company program
program
Items
► Advertising specialties
► Premiums
► Incentives
► Business gifts
► Awards
► Prizes
► Commemoratives
► Imprinted/decorated items
53
Advertising and Promotional Products
A large and growing business
2008 estimated Distributor market size
25.3bn Euros
2008 estimated Supplier market size
13.9bn Euros
13
7.6
7
4
2.9
1.8
1.8
0.6
USA
Europe
Latin
America
Canada
Source: PPAI and BIC estimates; 1 Euro = 1.38 USD
Oceania
USA
Europe
Latin
America
0.2
0.3
Canada
Oceania
54
Advertising and Promotional Products
A large and growing business
1989 – 2009 US Distributor industry sales in billion USD
+6.1% annual growth rate (CAGR)
18.0
17.9
25.1%
US GDP
18.1
19.2%
17.3
16.3
16.6
14.9
19.4
18.8
US Distributor
Industry sales
15.6
18.1%
14.7%
14.6
13.2
19.5%
13.3%
12.6%
11.9%
11.0%
11.9
7.7%
5.9%
4.6%
9.5
4.3%
4.1%
3.5%
2.3%1.8%
8.0
7.0
6.2
4.5
1989
5.0 5.1
5.2
-5.6%
-7.3%
End of the
Internet bubble
1991
1993
1995
1997
1999
2001
2003
2005
2007
“Sub-prime” crisis
2009
(est.)
1989
Source: PPAI, Bureau of Economic Analysis
-6.9%
1991
1993
1995
1997
1999
2001
2003
2005
2007
-19.5%
2009
(est.)
55
Advertising and Promotional Products
A cost effective advertising medium
One of the most important advertising support
In billion USD – 2007 selected media advertising sales / U.S. market figures
19.4
18.9
17.8
14.6
7.4
7.3
3.4
Promotional
Products
Source: PPAI research
Point of purchase
Cable TV
Yellow Pages
Couponing
Out-of-home
Business
magazines
2.9
Products
Placement
56
Advertising and Promotional Products
A cost effective advertising medium
One of the best cost per impression among other media
USD
Billboards
0.003
Calendars
0.003
Advertising
Specialties
0.004
Drinkware
Radio
0.005
Other non
wearables
0.005
Wearables
(shirts)
0.005
Cable TV
0.007
Newspaper
0.019
Prime Time TV
0.019
Desk
accessories
Other wearables
Awards
Magazine
Source: 2008 Advertising Specialty Institute research
0.004
0.007
0.016
0.021
0.033
57
Advertising and Promotional Products
A structured BUT fragmented industry
1
Supplier
2
Distributor
3
Company
4
End-user
 Brand awareness
Manufacturing
Traditional outside
sales team
 Fulfillment
programs, Door-todoor sales,
Friends and family
 Employee relations
& events
 Tradeshows
 Public relations
Direct Marketing
 WEB, Catalogs,
Samples, Telesales
End-user
 New product/service introduction
 Employee service awards
 Not-for-profit programs
End-user
 Internal promotions
Sourcing
Multiple printing
applications
End-user
 New customer acquisition
 Dealer/distributor programs
Assembly
End-user
Special markets
 Hotel & lodging,
Pharmaceutical,
Tobacco, Government
 Safety education/incentive
End-user
 Customer referral
 Marketing research
Products are
are sold
sold blank
blank or
or imprinted
imprinted
Products
58
Advertising and Promotional Products
A structured BUT fragmented industry
Est. total number of Suppliers and Distributors
7,150 Suppliers
Suppliers
7,150
40,700 Distributors
Distributors
40,700
CANADA
Suppliers
830
Distributors
6,300
USA
Suppliers
3,500
Distributors
21,000
LATIN AMERICA
Suppliers
400
Distributors
1,600
Source: BIC estimates
EUROPE
Suppliers
2,000
Distributors
10,000
OCEANIA
Suppliers
420
Distributors
1,800
59
Advertising and Promotional Products
A structured BUT fragmented industry
Others
2008 US suppliers
estimated market
share
4%
4%
3%
3%
1%
1%
1%
1%
1%
S&S Activewear
5%
Staton Corporate & Casual
3M Promotional Markets
Ash City
Bodek & Rodhes
SanMar
Ennis
75%
Polyconcept North America
Border Bros & Co
BIC Graphic US + Norwood Promotional Products
1%
Others
2%
Adventures in Advertising
National Pen Corp.
HALO
2008 US distributors
estimated market
share
Cintas
Geiger
4 Imprint US
Group II Communication
BDA
89%
Proforma
Staples Promo Products
60
Advertising and Promotional Products
A structured BUT fragmented industry
2008 North American sales by product category
Automoti ves
2%
Texti l es 2%
Per sonnal Cl ocks and Watches Food
2%
1%
1%
El ectr oni cs 2%
Sti cker s 2%
Wear abl es
31%
Computer s 2%
Magnets 2%
Games 2%
Buttons/ Badges 2%
Housewar es 3%
Spor ti ng Goods
3%
Other s 3%
Wr i ti ng Instr uments
9%
Awar ds 4%
Desk/ Of f i ce/ Busi ness
Accessor i es 5%
Source: PPAI
Dr i nkwar e
6%
Cal endar s
8%
Bags
7%
61
BIC Advertising and Promotional Products
Mainly Internal growth
1969
1970  2006
BIC enters the
Promotional
Products
Business
Products
& geographical
diversification
(Europe, USA,
Latin America)
Mainly External growth
2007
Atchison
(USA)
2009
Antalis
Promotional
Products
(Europe)
Norwood
Promotional
Products
(USA)
Full range of
imprinted & non
imprinted
products
Complete range of
non imprinted
products
Imprinted bags
Imprinted lighters,
sticky notes,
drinkware, …
Imprinted Writing
Instruments
62
BIC APP - Highlights and key figures
Two Global Trade Marks
Generalist leader
in Advertising
and Promotional
Products categories
Service leader
in writing instrument,
paper products
and bags
63
BIC APP - Highlights and key figures
BIC APP Gross Sales Breakdown by Products Category
Full Year 2010
Calendars
17%
Stationery
43%
Hard Goods
40%
64
BIC APP - Highlights and key figures
BIC APP Gross Sales Breakdown by Products Category
Hard Goods - Full Year 2009 estimated figures*
Awards
Auto / Tools
Bags
5%
23%
5%
9%
7%
16%
Golf / Sport
Health / Wellness
10%
Office / Magnets
Other
16%
Drink ware
9%
Meeting / Outdoors
*: based on the assumption of a full year consolidation of Antalis PP and Norwood PP – non audited
65
2010 Advertising and Promotional Products
Key Figures
2010
YoY Change
YoY Change at
constant
currencies*
Net Sales
362.6
+25.7%
+19.8%
Income from
Operations
27.4
+14.6%
Normalized
IFO Margin
9.2%
BIC Group
In million euros
* see glossary
66
BIC APP today
One of the most efficient Advertising & Promotional Products Industry leader
N°2 Worldwide
N°2
In Europe
N °1
In the US
Factory
Warehouse
67
Sustainable
Development
1
Measure…
Life cycle impact approach
BIC®
Cristal®
Pen
85%
7%
4%
-
3%
Lighter
BIC®
Maxi
86%
6%
5%
-
3%
82%
11%
4%
-
3%
Shaver
BIC®
Classic
1-lame
(incl. usage)
78%
69
… to eco-design
Take into account our main impact : use of non
renewable raw materials
1
Light and long lasting
products
Reduce to the raw material
weight
Refillable products
Maximum increase of the
duration of use
Recycled plastic and metal
Plastic from vegetal origin
Use alternative materials
2
3
70
French Ecolabel NF Environnement
BIC first manufacturer to be certified
71
An example of ecodesign :
the BIC® Easy shaver
– Ecodesign allowed to create a shaver
with :
1st step:
• Less material
• With the same characteristics, therefore
the same perception of quality by the
consumer
Reducing
the
quantity
of
material
- 20%
BIC® C3 ® AdvanceTM
=
2nd step:
Have a
longer
duration
of use
60 days of shaving
=
+
BIC® Easy
BIC® EASY 1
lighweight handle
sold with 6 heads
-59%
of environnemental
impact on
the
duration
of use
72
Glossary
• At constant currencies:
– Constant currency figures are calculated by translating the current year figures at prior year monthly average
exchange rates
• Comparative basis:
– At constant currencies and constant perimeter
• Normalized IFO:
– Normalized means excluding restructuring, real estate gains
and Antalis Promotional Products negative goodwill
• Free cash flow before acquisitions and disposals:
– Net cash from operating activities - net capital expenditures
+/- other investments
• Free cash flow after acquisitions and disposals:
– Net cash from operating activities - net capital expenditures
+/- other investments – acquisitions/disposals of equity investments / subsidiaries/business lines
.
73
2011 Agenda
1st Quarter 2011 Results
April 20, 2011
Conference Call
2010 Shareholders’
Meeting
May 11, 2011
Meeting (BIC headquarters)
2nd Quarter 2011 Results
August 3, 2011
Conference Call
3rd Quarter 2011 Results
October 19, 2011
Conference Call
All dates to be confirmed
74
IR contacts
Sophie Palliez-Capian
Head of IR
All dates to be confirmed
33 1 45 19 55 28
sophie.palliez@bicworld.com
75
Disclaimer
This document contains forward-looking statements. Although BIC believes its
expectations are based on reasonable assumptions, these statements are subject
to numerous risks and uncertainties.
A description of the risks borne by BIC appears in section “Risks and Opportunities”
of BIC “Registration Document” filed with the French financial markets authority
(AMF) on 01 APRIL 2010
76