Chiffres d`affaires - principales activités par zone géographique

APRIL 2006
BIC Group Stationery Presentation
Investor Relations Department: +33 (0)1 45 19 52 26 [email protected] [email protected] www.bicworld.com
1
2
HONOR THE PAST,
... INVENT THE FUTURE
3
BIC History
Consumer Stationery Products
1950
Launch of the famous BIC® Cristal® ballpoint pen
1956
Launch of the BIC® M10® retractable ballpoint pen
1961
New tungsten carbide ballpoint and BIC® Orange™ Fine
1965
Authorization to use the ballpoint pen in French schools
1970
Launch of the BIC® 4 Colours in one retractable pen
1979
Acquisition of Conté® (French pencils and felt pens)
1980
Launch of the BIC® Roller
1985
Creation of BIC Graphic USA
1988
Launch of the 7 de Conté® mechanical pencil
1991
BIC introduces Wavelength Value Added Pens
1992
Acquisition of Wite●Out® (US correction products)
1993
Conté® Evolution® wood-free resin pencil
Rubberized cushion barrels ballpoint pen (Softfeel®)
1996
Creation of BIC Graphic Europe
4
BIC History
Products
1997
Acquisition of Tipp-Ex®
(correction products) and of
Sheaffer® (luxury pens)
1998
Cristal® Grip
Round Stic Grip
Atlantis® Retractable Ball Pen
2000
2001
2002
Velocity® Retractable Ball Pen
Intensity gel ink roller
Exact Tip free ink roller
Tipp-Ex® foam applicator
BIC® Cristal® Pocket ballpoint pen
BIC® e.3 – ballpoint + pencil + stylus
BIC® Technolight™ free ink highlighter
Tipp-Ex® Shake’n Squeeze correction pen
Smooth Ink
Velocity® Retractable Gel
Conté® Evolution® Triangle Crayon
Z4® Free Ink Roller
2003
Cristal® Gel
Atlantis® Mechanical Pencil
BIC® Permanent Marker Line
Disney Coloring
Glues
2004
New Easy Glide Ink System
Atlantis® Stic
Velocity® Mechanical Pencil
BU2® & BU2® Grip
Acquisition of Stypen® (refillable
fountain pen)
2005
Cristal® Gel 2
BIC® fountain pens
Clic Master
2006
Briefing™
EasyClic™
Speedy™ correction tape
Mini Shake'n Squeeze
DeleteO™ correction tape
BIC® Clic Matic Mechanical pencil
BIC® Pro+™ ball pen / gel
5
BIC History
Geographic Expansion
1950
Marcel Bich launches BIC Cristal® in France
1954
BIC enters Italy
1956
BIC enters Brazil
1957
BIC acquires Biro Swan to enter the UK market
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 market
1965
BIC enters Mexico
1995
BIC enters Eastern and Central Europe
1997
Expansion in Asia
2004
BIC acquires 100% of Japanese Distributor Kosaido Shoji and renamed
BIC Kosaido KK
2005
BIC opens its own operations in China (November 2005)
6
BIC’s Category Segmentation
2005 Full Year Results
BIC Group
BIC Group
Net Sales
IFO
Lighter
27%
Stationery
52%
Stationery
43%
Lighter
49%
Shaver
17%
Shaver 8%
Other 4 %
7
BIC’s Brand Recognition
is the # 1 recognized Writing Instrument Brand
in multiple Key Markets.
along with
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BIC’s Organization
for Consumer Stationery
Category Management
Consumer Marketing
Four Geographic Regions
Research & Development
Europe, Middle East, Africa and
Sub-Continent
Manufacturing/Outsourcing
North America and Oceania*
Resource Allocation
Latin America**
Developing People/Best Practices
Asia
* includes Australia & New Zealand
** includes Mexico, Central & South America
9
BIC’s Organization
for Consumer Stationery
Category Management
Four Geographic Regions
Global Consumer Marketing
Regional Trade Marketing
Research & Development
Sales & Customer Relations
Manufacturing/Outsourcing
Customer Service & Supply
Resource Allocation
Local Operations
Developing People/Best Practices
Developing People/Best Practices
10
BIC’s Results in Total Stationery
(Consumer Stationery and BIC Graphic)
In million euro (under IFRS)
Net Sales
718
675
IFO
104
71
2004
2005
Change in sales
ND
+ 6.5 %
Change on a comparative basis
ND
+ 3.9 %
IFO margin
10.5 %
14.4 %
Normalized IFO margin
14.2 %
14.8 %
NA = Not Applicable
Mid-term IFO margin target: 17-18%
11
BIC’s Annual Volume
in Consumer Stationery
BIC’s units sold through subsidiaries 3.6 billion
BIC’s units sold through distributors
0.8 billion
12
Agenda
Pages
Our Marketplace
14 - 25
Our Vision and strategy
26 - 30
Implementation
31 - 44
Our Results
45 - 47
13
Our Marketplace
14
Our Marketplace - Defined
We compete in a flat market with a value of over € 7 billion.
Pens
Pencils
Markers
Coloring
Correction
• Ball Point
• Woodcase
• Permanent
• Felt Pen
• Bottle
• Gel
• Extruded
• Board
• Pencils
• Pens
• Roller
• Mechanical
• Highlighters
• Markers
• Tape
• Felt tip
• Wax Crayons
•Fountain pen
15
Our Marketplace – Brand Position
BIC covers every stages of your life !
AGE
GROUP
TODDLERS
2-4Y
PERSONAL
EXPECTATIONS
THE
AWAKENING
KIDS
5-8Y
THE DISCOVERY
TWEENS
9 - 13 Y
1st step to
INDEPENDENCE
TEENS
14 - 20 Y
STUDENT LIFE
ADULTS
21 & UP
SOCIAL LIFE
16
Our Marketplace
Value Segmentation for the Worldwide Market
Correction 7%
Pens
48%
Coloring 14%
Markers 16%
BIC Estimate & Published Research
Pencils
15%
17
Our Marketplace
BIC’s Volume Share of the Worldwide Market
• The Worldwide Market is estimated at 40 billion units.
18%
16%
16%
15%
14%
12%
10%
10%
8%
6%
6%
6%
3%
4%
2%
0%
Pens
Pencils
Markers
Coloring
Correction
Total
BIC Estimate & Published Research
18
Our Marketplace
BIC’s Value Share of the Worldwide Market
Value
20%
18%
18%
16%
14%
12%
11%
10%
9%
8%
8%
6%
6%
4%
4%
2%
0%
Pens
Pencils
Markers
Coloring
Correction
Total
BIC Estimate & Published Research
19
Our Marketplace
Regional Breakdown of the Worldwide Market
Value
Europe
23%
Asia
28%
MEA
8%
Latin America
8%
North America
& Oceania
33%
BIC Estimate & Published Research
20
Our Marketplace
BIC’s Market Share in Consumer Stationery
Interpretation
Overall
Classic
Ball Pen
Other
Pens
Europe
France
Rest of Europe
+++
++
++++
+++
++
+
++
North America &
Oceania
+++
++++
++
++
+
Latin America
+++
++++
++
+
+
MEA
Africa
Rest of MEA
+++
+
++++
+
Scale:
++++
+
strong
weak
Pencils
Markers
Coloring
Correction
++
++
+++
+
+++
+
+
+++
+
++
+
+
21
Our Marketplace
Unaided Awareness – BIC Writing Instruments
France
Greece
77%
83%
Mexico
Italy
80%
77%
Argentina
78%
Russia
Australia
Brazil
Source: Global Brand Awareness Study - December 2000
9%
Malaysia
7%
57%
Poland
72%
19%
59%
57%
75%
79%
Romania
United States
South Africa
Spain
United
Kingdom
Germany
19%
4%
22
Our Marketplace
The Strength of the BIC Brand
Brand Perceptions
% Agreement
BIC is a Brand you Trust
86%
BIC has High Quality Standards
77%
BIC represents good Value for Money
79%
BIC is Reliable
77%
BIC is a Leader*
85%
Source: 2002 Quantitative Studies - Western Europe / North America
* Note: Rated in North America Only
23
Our Marketplace
Weighting of the Market by Distribution Channel
France
USA
32 %
50 %
68 %
50 %
Office Supply
Mass Market & Traditional Retail
24
Our Marketplace
Competitive Profile of the Worldwide Market
Newell
Rubbermaid
17%
BIC
10%
All other
53%
Avery
Edding
Faber-Castell
Fila
Henkel
Local Players
Private Label
Schwan Stabilo
Staedtler
Zebra
BIC Estimate & Published Research
Pilot
7%
Pentel
6%
Crayola
3%
Mitsubishi
4%
25
Our Vision and Strategy
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Our Vision
Keep best-in-class quality as a founding
principle of our strategy
Continue to develop our leading position in
value for money
Innovate
27
Our Strategy
ª Strengthen our leadership
in our historical segments
Improve our existing products
Offer consumers products that meet their needs
and their desires, leading to added-value products
Leverage our brand name
ª
Enter new market
segments
Develop the research for new technologies
and new designs
Study acquisition opportunities to expand either
our portfolio or our geographic presence
ª
Improve our margins
Control costs
Leverage added-value products
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Our Strategy - Quality
A complex expertise to assure the quality of a simple product:
example of the ball pen
ª Control of measurements, appearance and roughness of balls
ª Double control of the point measurements
ª Physical and chemical control of inks
ª Control of the cartridge and pen assembly
ª Control of the writing quality at each stage of the product manufacturing
process
ª Audit of the finished products, with samples taken both in our plants and from
distribution channels
ª All these controls are implemented in all of our factories. As far as OEM
products are concerned, each product is systematically checked before
shipment.
29
Our Strategy
Research & Development
Improvement of product performance and launch
of new products
ª BIC uses the latest improvements in materials and chemistry to develop and
validate inks, points, leads, pencils, mechanical systems and correction systems
ª New products are launched on the basis of common standardized components :
cartridges, retractable and mechanical systems
ª We develop and make our own specific manufacturing and control equipment
ª Consumer satisfaction is a top priority for BIC’s General Management.
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Implementation
31
Implementation – Product line
Offer a wide choice of simple, inventive and reliable products
Adults
Cristal® Gel
Sheaffer
Atlantis®
BIC® Select™
Intensity™
Orange™
XXL
Velocity®
®
BIC Matic
WideBody® Ice
Z4®
M10®
Cristal®
Daily
use
Fountain pens
Velleda®
5 to 8 years
old
Intensity™ Gel
Fluo / Pastel
®
Cristal
Colors
4 colors
- Coloring pencils
Roller Z4®
fun ink
Sophisticated
& fun
BIC® Matic Fun
Cristal®
Pocket
Scents
BIC® Kids :
- Felt pens
Roller Fluo
Intensity™ Gel
Licence
fountain pens
BIC® Kids
Imagine
- Wax crayons
BIC® Disney
Magic Artist
2 to 4
years old
Meet all the consumers’ needs and desires
32
Implementation – Innovation
Duo/Briefing™
EasyClic™
Innovative
mechanism
33
Implementation – New products
Mechanical pencil:
BIC® Select™ Rondo 0,5
Fountain pen:
BIC® X Pen® Sofia
Correction products:
Mini Shake’n Squeeze
correction pen
BigWheel 2
correction tape
Ball pen:
M10® 50 Years
34
Implementation – Pens
Point
Tungsten
Carbide Ball
(Brass / Nickel Silver)
Plastic support
section
Tube
6 Ink
Cartridge
Plug
35
Implementation – Pens
Developing a full menu of technology for a full range of Pens
• Different point sizes and specifications
• Variety in Point Materials (Brass and Nickel Silver)
• Multiple ink technologies
Ball Point Inks
Gel Inks
Liquid Inks
Pigments
with
or
Dyes
• Different materials and mechanical systems
Cost Reduction through standardization and technology
development
36
Implementation – Pens
Expand added-value Ball Pen range
Atlantis®
Velocity®
XXL Pro™ (2003)
Atlantis® Stic (2004) BIC® Select™ (2005)
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BIC Pens – retail prices (€)
6,50
6,25
€ 6,00
6,00
5,75
5,50
5,25
5,00
€ 4,99
4,75
4,50
4,25
4,00
€ 3,99
3,75
3,50
3,25
3,00
2,75
€ 2,49
2,50
2,25
€ 1,90
2,00
1,75
€ 1,98
€ 1,50
1,50
€ 1,25
€ 1,66
1,25
€ 1,00
€ 1,00
€ 0,82
€ 1,30
1,00
€ 0,55
€ 1,00
€ 1,00
0,75
€ 0,85
€ 0,30 € 0,35
0,50 € 0,15
€
0,25
€ 0,20
€ 0,73
0,25
€ 0,42
€
0,33
€
0,30
€
0,15
€ 0,22
0,00
38
Implementation - Pens
Packaging – Graphic Differentiation
Retail Price - € 1.49
Retail Price - € 3.99
Retail Price - € 4.29
39
Implementation - Pencils
BIC has solid market share in Classic
Mechanical Pencil.
Leads in BIC’s mechanical pencils have
been improved to match those of the #1
competitor (Pentel).
BIC has developed a 0.9 mm lead to meet
growing consumer interest in bold writing.
BIC is under-represented in Added Value
Mechanical Pencil.
BIC launched Atlantis® and Velocity®
Added Value Mechanical Pencils in 2003.
BIC® Matic Fun
Atlantis® Velocity®
40
BIC Pencils – retail prices (€)
1,40
1,30
€ 1,29
1,20
€ 1,25
€ 1,20
1,10
1,00
€ 1,05
0,90
€ 0,85
0,80
0,70
0,60
€ 0,55
0,50
0,40
€ 0,40
0,30
€ 0,31
0,20
0,10
0,00
BIC Pencil
BIC Pencil
(Fashion)
BIC Matic Grip
(.5 & .7)
Great Erase
Softsider
Color Codes
Atlantis Pencil Velocity Pencil
41
Implementation - Markers
Permanent Markers
BIC’s participation in the Permanent
Marker and Board Marker segments is
limited to France.
There is a large, profitable market for
Permanent Marker in the USA,
dominated by Sharpie.
In 2003, BIC launched a range of
premium permanent markers with
superiority claims over the competition.
“Value” and “better” positioned
permanent marker have also been
launched.
Europe is also following this product
strategy.
Good
Better
Best
42
Implementation - Markers
Highlighters
BIC has strong market share in the
USA with Brite Liner® .
BIC’s participation in the market
was strengthened with Brite Liner®
Grip in 2002.
The “Free Ink” Technolight™
launched in 2001 has been
supplemented with Z4® Highlighter
in 2003.
Brite Liner®
Z4®
Brite Liner® Grip
Technolight™
43
Implementation - Correction
BIC’s Wite●Out® is the #1 brand in
North America.
BIC’s Tipp-Ex® is a strong #1 or #2
brand in Europe.
BIC is gaining share in key markets.
The correction pen and tape markets
are growing while bottle is declining.
BIC has developed a solid range of
products in correction tape.
The Shake’n Squeeze pen has
continued to out perform the market.
44
Our Results
45
Our Results
Innovation: 25% of 2005 sales achieved by new products and line
extensions
Limited price increases on core products.
Selling price deflation is an issue in some markets.
Strong everyday focus on productivity is the key response.
USA restructuring will allow cost reductions and increased
investment in Brand Support.
46
BIC Factories Around the World
47