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
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
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
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
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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