First Quarter 2010bicworld2.s3.amazonaws.com/files/pdfs/BIC_Group... · 2010-05-24 · Stationery...

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GROUP PRESENTATION FOR GROUP PRESENTATION FOR INVESTORSINVESTORS

First Quarter 2010

2

Content

6

7

8

9

10

11

12

13

Capital ownership

Our strengths

Strategy

2009 Net sales by categories

Positions in our 3 core businesses

Recognized brands

International footprint

Group Key Figures

CAPEX

Strong balance sheet

2010 Group Perspectives

14

Return to shareholders 15

Use of cash policy

2009 Key Figures

21

The Stationery Market (growth)

23

36

31

Quality @ BIC price

Market Share

Child-resistant regulation in Europe

2009 Key FiguresStationery

20

The Stationery Market

22

Strategy

Lighters

Lighters - Strategy

34

41

N°1 brandedlighter manufacturer

Towards more value-added products

Lighters in 2010

Our marketplace

2009 Key Figures

Shavers - Strategy

33

Shavers

42

38-40

5

16

17

24

25

32

35

Stationery in 2010

28

29

27

India’s pen market

Cello Pens key figures

India’s writing instrumentmarket

Cello Pens

26

Our ambitions for the next 3 to 5 years

18

3

Content

51

66

67

The APP industry - history

Sustainable development

Life cycle approach

Eco-design

Q1 2010 Results

98Disclaimer

96Glossary

972010 Agenda

43

Quality and innovation ata reasonable price

A comprehensive range of quality products

44

3-blades one-piece market shares

Shavers in 2010

45

46

Advertising & Promotional Products

482009 Key Figures

49A 4th business

50Not a new category

52-54The APP industry - Organization

55-56The APP industry – Size & trends

57-58The APP industry A cost effective medium

59-64BIC APP highlights & key figures

68Long and lasting

69Eco Label

70Eco-design: the BIC Easy

72-95


Group Overview

5

Capital ownership As of 14 April 2010*

*Figures calculated from the latest available information.

Fondation de France4.6%

Treasury stocks0.6%

Silchester International

Investors9.9%

First Eagle 4.5%

Bich Family43.5%Others

36.9%

6

Products Brand…S BalanceSheet

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)

126.2M€Free Cash Flow after

Acquisitions in 2009

305.3 M€Net Cash

Position at the end of

2009

Our strengths

7

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

8

2009 Net Sales breakdown by category

Other Products 6%

Shavers16%

Lighters24%

Stationery Consumer

31%Advertising

& Promotional Products

23%

Consumer Business

77%

*: based on the assumption of a full year consolidation of Antalis PP and Norwood PP – non audited

9

Positions in our 4 core businesses

*: all market shares are in value

Worldwide for consumerstationery products

Worldwide for brandedpocket lighters

of one-piece shavers in major markets

(US, Europe, Latin America)

Stationery10% market share* N°2

N°1

N°2

Lighters35% market share*

Shavers20% market share*

of one-piece in USA and Europe

N°1 in the USAAdvertising & Promotional Products N°2 in Europe

10

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

11

Our international footprint

Europe

North America

Developing Markets29%

40%

31% 29%

40%

31%

Q1 2010 sales breakdown by geography

12

Group Key Figures

6.0% 6.6%4.6%

3.3%1.6%

-0.6%2004 2005 2006 2007 2008 2009

16.2%17.5% 17.9% 17.4%

15.1% 15.3%

2004 2005 2006 2007 2008 2009

2.15

3.11 3.43 3.513.00 3.15

2004 2005 2006 2007 2008 2009

€1,562.7 m

€239.6m

€3.15

NET

SA

LES

Nor

mal

ized

In

com

e Fr

om

Ope

ratio

nsEP

S2004 – 2009growth average on a comparative basis: +3.6%

€308.3m

Free

Cas

h Fl

ow**

* 160.398.9

178.6128.9 145

308.3

2004 2005 2006 2007 2008 2009

*: actual figures*** Cash from operating activities – cash from investing activities / before acquisitions

2004 – 2009 Average Normalized IFO* margin: 16.6%

2009FCF / net sales: 20%

2004 – 2009EPS* CAGR: +7.9%

13

CAPEX

53

8377

71

90*

70

2004 2005 2006 2007 2008 2009 2010 est.

*Shelton real estate acquisition (€ 11m)

In million euros

14

Strong balance sheet

413.6426.6

199.3163.5

244.2216.4

305.3210.6

255.2

232.0

375.1

355.7

1304.3

1172.1

2008 2009 2008 2009

Tangible assets

Intangible assets

Net cash position

Others

Working capital*

Others

Shareholders’equity

ASSETS EQUITY & LIABILITIES

* Working capital = Net Inventory + Trade and other receivables – Trade and other payables – Other assets and liabilities

Rounded figures in million euros

15

Return to shareholders

*: Cash from operating activities – cash from investing activities (before acquisition)

86 7249 40

65

308

145129

179

99

160

261.9

5865

64

63

49

3127**

3

131

182

2004 2005 2006 2007 2008 2009

Free cash flow* Share buyback Dividend Acquisition

In million euros

**: 2004 exceptional dividend

16

Consistent use of cash policy

Focus on Strategic

acquisitions

Dividend

ShareBuy-back

2006PIMACO

-Adhesive labels-Brazil

2009Cello Pens

- Writing Instruments

- India

2007Atchison Products

- Promotional products

- USA

2009APP

- Promotional products - Europe

Regular dividend per

share

Continue to look for strategic acquisitions, althoughfocus will be to succeed in leveraging recent moves

44% payout*

in 2009 based on

2009 results

85.5 71.649.3 39.9

25.71.9

2004 2005 2006 2007 2008 2009

In million euros

1.35 1.40

1.00 1.000.80 0.90

1.151.30 1.35

2003 2004 2005 2006 2007 2008 2009

Dividend per share Special Dividend

In euros

2009Norwood

Promotional Products

- USA

*: based on ordinary dividend

17

2010 Group perspectives

Discipline maintained on profitability and cash generation

Moderate net sales growth on a comparative

basis

Slight improvement of normalized IFO margin

compared to 2009

BIC APP Normalized IFO margin close to last year

reported level

ConsumerBusiness

Advertising & Promotional

Products

Leverage a more positive economic environment to grow market share

in all categories

Continue to strengthen our positions in emerging markets

In a volatile business environmentachieve Norwood Promotional Products

integration to be ready for when the industry recovers

18

Our ambitions for the next 3 to 5 years

*: net sales growth at constant currencies and bolt-on acquisitions

Grow faster than our markets thanks to our Quality & Price positioning

Continue to improve our operational efficiency

Between 2% and 4%

Between 5% et 10%

Between 15% and 18%

Between 8% et 12%Comparable to Group level

in the long term

Continue to monitor working capital

Be ready to seize external growth opportunities through bolt-on and strategicacquisitions, while maintaing a sound balance sheet

Consumer business

Advertising& Promotional

Products

Annual Organic Growth* Normalized IFO margin


Stationery Consumer

20

2009 Stationery Consumer Key Figures

9.6%Normalized* IFO Margin

-2.7%

YoY Change at constant

currencies*

43.3

509.6

2009

NAIncome from Operations

NANet Sales

YoY ChangeBIC GroupIn million euros

* see glossary

21

The consumer stationery market

BIC Estimate & Published Research – 2008 – Manufacturers figures –Pens, pencils, markers, coloring, correction

Total worldwide consumer stationery market = 6.2 billion euros in 2008

Key Geographical Markets (breakdown in value)

USA

Latin America

Japan

India

Europe

21%

19%

8%14%

14%

7%

18% 21%

19%

8%14%

14%

7%

18%

China

ROW

Pencils

Markers

Coloring

Correction

Pens49%

13%

15%

16%

7%

49%

13%

15%

16%

7%

Breakdown by main segment (in value)

22

Stationery Consumer - Our marketplaceWhere will the growth come from?

BIC Estimate & Published Research - 2007

JapanNorth America

& Oceania

WesternEurope

Latin America

Eastern Europe

India

China

-3%

-1%

2%

4%

6%

8%

10%

12%

14%

Size in million euros

Market growth

2006-2007 market trends by geographies (in value)

23

Stationery Consumer – Strategy

1. A brand that consumers trust2. Clear positioning

Quality @ a BIC price Great value for money

3. Strong positions in key segments4. Superior technical know-how to drive

quality control and innovation5. Global presence following the

acquisition of Cello®

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

24

Historical and close

relationship with the trade

Iconicproducts

Strong brands

Worldwide leadership positions

Strong positions in major market

segments Consumer trust for more than 50

years

Innovation

24 million BIC stationeryproducts bought every day worldwide

More than 3m outlets

worldwide

Stationery Consumer: “Quality @ a BIC price”

25

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% market share)

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

(24% market share)

26

More for your money… … more … … more innovation

BIC Stationery Consumer category in 2010

27

4,100

2,300

02-03 07-08

>35% share of the Indian Pen market

90% unaided awareness

Strong growth - High Profitability

The leading Indian writing instrument brand

The widest distribution network in India

Cello Pens are distributed nationwide through 731,000 outlets all across India a network of 42 super-stockists and 4,200 distributors

12% 5 years sales CAGR

Approximately 30% FY07-08 EBIT margin

Revenue (INR Million)

Appr. 5,000 employees

1 bn pens per year (2 industrial sites )

P E N S

Cello Pens

28

Total stationery: ~ INR 90billion (1.4 billion Euros)

Total writing instruments: ~ INR 28billion(440 million Euros)

79% 15%

6%

79% 15%

6%

OthersPaper and Notebooks

Pens

Others

Pencils

63%31%

6%

63%31%

6%

WritingInstruments

Cello Pens Estimate & Published Research – 2007 – Retail value

Mid to high-single digit annual growth

India’s writing instrument market overview

63.6 INR = 1 euro (January 20, 2009)

29

5%

25%

46%

24%5%

25%

46%

24%

37%

63%

cc.3

cc. 17

India US

Total pen market: ~ INR 22billion

Low but increasing per capita pen consumption Highly fragmented distribution network

Retail price point A market leader with market share twice the nearest competitor

P E N S

Lexi, Flair, Linc, Add Pens, Montex, GM Pens, Luxor, Today’s, Rotomac

Modern Retail

StationeryShop

Traditional "Mom &Pop" stores

General Stores

< 5 INR

INR 5-10

INR 10-15

> 15 INR

10%

62%

16%

12%

India’s writing instrument market overview: focus on pens


Lighters

31

2009 Lighters Key Figures

34.0%Normalized IFO Margin

+5.3%


currencies*

127.9

398.9

2009

+16.3%Income from Operations

+5.9%Net Sales


* see glossary

32

Lighters – Strategy

Strengthen our position as the only branded lighter with worldwide strengthsAccelerate 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


33

Integrated distribution network

35%<30%

> 60%> 60%

Europe worlwide North America Latin America

Brand awarenessUS Disposable Pocket Lighter

8%

10%

86%

Competitor B

Competitor A

BIC

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

34

Lighters: towards more value-added products

Maxi

J3 ElectronicMini

Sleeves

Cases

Megalighter™New Generation

Utility lighters

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

• App. 1/3 market share in the US

• Strong success in Europe

35

BIC Lighter category in 2010

Pocket Lighter Sleeves Pocket Lighter Case

Utility Lighter Pocket ashtray

Focus on added-value products and innovation

36

March 11, 2007 December 31, 2007

Child-resistant Regulation in Europe

• All lighters imported or manufacturedin Europe must be ISO 9994 compliant

• All lighters imported or manufactured in Europe must be child-resistant

• Novelty lighters import or manufacture in Europe banned

•All lighters sold to consumers must be ISO 9994 compliant

•All lighters sold to consumers must be child-resistant

•Novelty lighters sales to consumers banned

May 11, 2006: European Decision (2006/502/EC)April 12, 2007: European Decision (2007/231/EC)

Non child-resistant & novelty lighters imported or manufactured before March 11, 2007 can be sold to consumers

94% of BIC® lighters sold to the trade are child-resistant

March 11, 2008


Shavers

38

2,0%1,5% 1,6%

2,9%2,6%

3,6%

Disp System WSM

EuropeUS

Shavers – Our marketplace

7%

56%

37%

7%

56%

37%

Refillable

Double edgeOne-piece

Total wet shave market in 2008: ~ 8 billion euros

A growing market in both refillable and non-refillable segments

CAGR Value Growth 03-08

Sources: Western Europe - 10 countries - Coverage: Based on AC Nieslen reestimated coverage per country - ACNielsen period ending End December 2008.USA - IRI - US FDMX - w/o Walmart - coverage rate 55% - period ending December 2008

39


Market evolution towards more value-added products (in value)

33%

20%

3%

84%97%

69%

2001 2002 2003 2004 2005 2006 2007 2008

One-piece / Single and Twin

One-piece / Triple & Quad53%

33%

10%

44%

50%

67%

90%

2001 2002 2003 2004 2005 2006 2007 2008

One-piece / Single and Twin

One-piece /Triple & Quad

Western Europe

USA

40


14%

20%

39%

30%

2003 2004 2005 2006 2007 2008

EuropeUSA

Source: IRI Period ending 31-Dec-08 – USA / UKAC NIELSEN Period ending Dec-2008 / Europe: all countries excluding CH

Women one-piece value Share

Evolution of the women market segment

41

2009 Shavers Key Figures

12.5%IFO Margin

+2.4%


currencies*

30.3

268.8

2009

+178.0%Income from Operations

+1.7%Net Sales


* see glossary

42

Shavers - Strategy

1. 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 ™ …)

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

3. Products offering a better value4. 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


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

43

Continue to offer consumers the choice for Quality and Innovation at the best price for a complete range of products

• Classic one-piece single-blade• One-piece twin-blade • One-piece triple-blade and 4-blade for men• One-piece and refillable triple and 4-blade shavers for women

1USD

Single1 D

BIC 2 D

BIC3 D

Comfort 3 D

BIC Comfort 3Advance D

SilkyTouch D

Comfort Twin D

Soleil DSoleil

System

BIC Bella 4B DFlex and Comfort 4 D

Shavers: a comprehensive range of quality products from classic to 4 blades

BIC Easy Hybrid &BIC Soleil Easy Hybrid

BIC Elocutions D

44

3 blades men One-piece – France (€)

Women’s Refillable – US (USD)3&4 blades women One-piece – US (USD)

2.41

0.57

1.49

0.700.78

1.26

1.28

BIC 3

Private Label

BIC Ecolution

BIC Comfort 3Advance

Schick Xtreme 3

Gillette Sensor 3

Gillette Mach 3

2.38

2.39

1.94

1.001.02

1.42

1.451.51

Private Label

BIC Comfort 3

BIC Soleil Original

Xtreme 3 Comfort +

Sensor 3

BIC Bella 4B

Quattro Disposable

Venus Disposable

1.63

2.31

2.45

BIC Soleil System

Venus System

Quattro System

Non promoted price per volume – January 2009

• A complete and well price-positioned range of one-piece triple-blade products for men

• A strong franchise with products offering a better value in the women’s segment

Shavers: quality and innovation at a reasonable price

45

9%

25% 24%28%

14%

3&4 Blades one-piece Market shares

30% 31% 30%

6%3%

Source: IRI Full Year 2008 vs. Last 52 weeks ending August 23, 2009 / USAIRI Nielsen CMR Full Year 2008 vs. Last 52 weeks ending April 2009 / France, Italy, Greece, Spain and UK

Euro

peU

SA

Volume market share

5%

11%

23%27%

34%

Value market share

Gillette

3%5%

19%

35%38%

Schick BIC Private Labels Others

46

BIC Shaver category in 2010

Continue to offer innovative affordable products BIC® Soleil® Mini

1USD

Sim

plic

ity

Technology

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


Advertising & Promotional Products

48

2009 Advertising and Promotional ProductsKey Figures

10.4%NormalizedIFO Margin

NA


currencies*

23.9

288.4

2009

NAIncome from Operations

NANet Sales


* see glossary

49

BIC Advertising and Promotional Products A 4th business category, not a new business

Late 60’ The origins

+ =

50

82%

18%

96%

4%

20002000

87%

13%

84%

16%

BIC Advertising & Promotional Products Business

20042004 20082008

19891989

A 4th business category…not a new business

Group ConsumerNet Sales

Advertising and Promotional

Products Net Sales

51

BIC Advertising and Promotional Products

BIC enters the Promotional Products Business

Products & geographicaldiversification

(Europe, USA, Latin America)

Atchison(USA)

AntalisPromotional

Products (Europe)

Mainly Internal growth Mainly External growth

1969 1970 2006 2007 2009

NorwoodPromotional

Products(USA)

Imprinted Writing Instruments

Imprinted lighters, sticky notes, drinkware, …

Imprinted bags

Complete range of non imprinted

products

Full range of imprinted & non

imprinted products

52

Advertising and Promotional Products History and definition

2010

Items used to advertise and promote a product, a service or a company programItems used to advertise and promote a product, a service or a company program

► Advertising specialties

► Premiums

► Incentives

► Business gifts

► Awards

► Prizes

► Commemoratives

► Imprinted/decorated items

53

Advertising and Promotional Products A structured BUT fragmented industry

Manufacturing

Assembly

Sourcing

Multiple printing applications

End-userCompanyDistributorSupplier

1

Products are sold blank or imprintedProducts are sold blank or imprinted

Traditional outside sales team Fulfillment programs, Door-to-door sales, Friends and family

Direct MarketingWEB, Catalogs, Samples, Telesales

Special markets Hotel & lodging, Pharmaceutical, Tobacco, Government

2

Brand awareness

Employee relations & events

Tradeshows

Public relations

New customer acquisition

Dealer/distributor programs

New product/service introduction

Employee service awards

Not-for-profit programs

Internal promotions

Safety education/incentive

Customer referral

Marketing research

End-user

End-user

End-user

End-user

End-user

3 4

54


Est. total number of Suppliers and Distributors

7,150 Suppliers7,150 Suppliers

EUROPE

Suppliers 2,000

Distributors 10,000

CANADA

Suppliers 830

Distributors 6,300

USA

Suppliers 3,500

Distributors 21,000

LATIN AMERICA

Suppliers 400

Distributors 1,600

OCEANIA

Suppliers 420

Distributors 1,800

40,700 Distributors40,700 Distributors

Source: BIC estimates

55


Source: PPAI

2008 North American sales by product category

Wear ables31%

Automotives2%

Sticker s 2%

Dr inkwar e6%

Bags7%

Wr i ting Instr uments9%

Calendar s8%

Spor ting Goods3%

Other s 3%

Awar ds 4%

Desk/ Of f ice/ Business Accessor ies 5%

Buttons/ Badges 2%

Housewar es 3%

Magnets 2%

Games 2%

Electr onics 2%

Computer s 2%

Food1%

Clocks and Watches1%

Texti les 2%

Per sonnal2%

56

13

7

2.91.8

0.6

Advertising and Promotional Products A large and growing business

7.6

4

1.8

0.2 0.3

2008 estimated Distributor market size25.3bn Euros

2008 estimated Supplier market size13.9bn Euros

USA Europe LatinAmerica Canada Oceania USA Europe Latin

America Canada Oceania

Source: PPAI and BIC estimates; 1 Euro = 1.38 USD

57

Advertising and Promotional Products A large and growing business

19.418.8

18.017.3

16.315.6

16.6

17.9

4.5

14.6

18.1

5.0 5.1 5.2

7.06.2

8.0

9.5

11.9

13.2

14.9

1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009(est.)

1989 – 2009 US Distributor industry sales in billion USD+6.1% annual growth rate (CAGR)

7.7%

11.9%

2.3%1.8%

19.2%

12.6%14.7%

18.1%

25.1%

11.0%

13.3%

19.5%

-7.3%-5.6%

4.6%5.9%

-6.9%

-19.5%

3.5%4.3%

4.1%

1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009(est.)

US DistributorIndustry sales

US GDP

“Sub-prime” crisis

End of the Internet bubble

Source: PPAI, Bureau of Economic Analysis

58

Advertising and Promotional Products A cost effective advertising medium

One of the most important advertising support

2.93.4

7.37.4

14.6

17.818.919.4

PromotionalProducts

Point of purchase Cable TV Yellow Pages Couponing Out-of-home Businessmagazines

ProductsPlacement

In billion USD – 2007 selected media advertising sales / U.S. market figures

Source: PPAI research

59

Advertising and Promotional Products A cost effective advertising medium

0.033

0.019

0.019

0.007

0.005

0.004

0.003

Magazine

Prime Time TV

Newspaper

Cable TV

Radio

AdvertisingSpecialties

Billboards

One of the best cost per impression among other media

0.021

0.016

0.007

0.005

0.005

0.004

0.003

Awards

Other wearables

Deskaccessories

Wearables(shirts)

Other nonwearables

Drinkware

Calendars

Source: 2008 Advertising Specialty Institute research

USD

60

BIC APP - Highlights and key figures

Two Global Brands

45%55%

Generalist leaderin Advertisingand Promotional Products categories

Service leaderin writing instrument, paper productsand bags

61

38%

4%40%

14%4%


*: based on the assumption of a full year consolidation of Antalis PP and Norwood PP – non audited**: based on BIC Group new reporting figures, lighters Advertising & Promotional Products are reported in the lighters category

Hard Goods

Funeral

Lighters**

BIC APP Gross Sales Breakdown by Products CategoryFull Year 2009 estimated figures*

Calendar

Stationery

62


*: based on the assumption of a full year consolidation of Antalis PP and Norwood PP – non audited

9%

10%

16%

16%

23%

9%

7%

5%5%

Drinkware

Awards

Office / Magnets

BIC APP Gross Sales Breakdown by Products CategoryHard Goods - Full Year 2009 estimated figures*

Other

Auto / Tools

Golf / Sport

Meeting / Outdoors

Health / Wellness

Bags

63

BIC APP today

One of the most efficient Advertising & Promotional Products Industry leader

FactoryWarehouse

NN°°22In Europe

N°2 WorldwideN°2 Worldwide

NN°°11

In the US

64

BIC APP today

One of the most efficient Advertising & Promotional Products Industry leader

A complete range of products and services

A Sustainable development approach

Global sourcing capacities Worldwide positions


Sustainable Development

66

Measure…

Life cycle impact approach

BIC®

Cristal®Pen

LighterBIC®

Maxi

ShaverBIC®

Classic1-lame

(incl. usage)

90.45% 5.62% 3.66% - 0.27%

83.98% 10.68% 4.87% - 0.47%

62.97% 29.43% 7.33%

78%

0.27%-

1

67

Recycled plastic and metalPlastic from vegetal origin

Long lasting products refillable products

Light products Reduce to the raw material weight

… to eco-design …

Take into account our main impact : non renewable raw materials

1

Maximum increase of the duration of use

2

Use alternative materials

3

26.8% of Stationery Consumer

sales in 2008


sales in 2008


sales in 2008

68

… our products…

Light and long lasting productsA trendsetting range

Labelling that shares our eco-values

69

French Ecolabel NF EnvironnementBIC first manufacturer to be certified

70

An example of ecodesign : the BIC® Easy shaver

– Ecodesign allowed to create a shaver with :

• Less material• With the same characteristics, therefore

the same perception of quality by the consumer

BICBIC®® C3 C3 ®® AdvanceAdvanceTMTM BIC® Easy- 30%

1st step:

Reducing the

quantity of

material

2nd step:

Have a longer

duration of use

+=BIC® EASY 1

lighweight handlesold with 6 heads

60 days of shaving

=


Q1 2010 RESULTSQ1 2010 RESULTS

72

Group Q1 2010 Key figures

Net Sales: 378.3 million euros Normalized Income from Operations: 53.7 million euros

EPS: +30.4% increase Net Cash Position

In euros In million euros

% of change Margin

+8.8%

+21.6%+22.7%

As reported At constantcurrencies

On a comparativebasis

12.6%11.8%

14.2%

11.8%

Q1 2009 Q1 2010

IFO Margin Normalized IFO margin

0.560.73

Q1 2009 Q1 2010

209.8

347.6

31-MAR-2009 31-MAR-2010

73

Group Q1 2010Consumer & Advertising and Promotional Products

Net Sales Normalized IFO margin

% of change on a comparative basis % of net sales

10.3%

-3.6%

Consumer Business Advertising &Promotional Business

18.4%

10.1%

-4.2%

12.0%

Q1 2009 Q1 2010

Consumer Business Advertising & Promotional Business

74

-12.5%

-1.1%-1.1%

2.8%

-6.2%

2.2%

-6.8%

1.3%

FY 2009 YTD FEB-10

Stationery Consumer – Industry trends in the U.S.

Source: NPD/IRI – excluding Walmart

Total Market

Office Suppliers Super StoresModern Mass Market

75

Stationery (Consumer)

IFO marginChange in net sales at constant currencies

112.6100.1Net Sales

Q1 2010Q1 2009In million euros

8.33.7Normalized IFO

7.73.7IFO


NET

SA

LES

IFO

•Slight improvement in developed markets (Europe and North America)Moderate recovery in Retail Mass Market channel with inventories stabilizing at a more reasonable level than they were a year ago.

• Strong performance of developing markets, with double digit growth in Latin AmericaPositive Back-to-School in Brazil and ArgentinaGrowth in Middle East and Africa

Normalized IFO margin: 7.4% in Q1 2010 compared to 3.7% in Q1 2009Positive impact of volume growth on cost absorption

IFO margin

Normalized IFO margin+10.7%

-6.4%

3.7%

7.4%6.9%

3.7%

76

Lighters


107.094.8Net Sales



40.929.1IFO


NET

SA

LES

IFO

Positive volume impact in all key geographies Low single digit growth in Europe compared with a strong Q1 2009 Strong performance of North America

Market share gain of pocket lighters vs. high-end segmentsPositive impact of safety legislation (novelty lighters banned in 11 states)Market share increase in convenience stores for BIC® lighters

Strong growth in developing markets with double digit growth in Latin AmericaContinued distribution gains in South America

Normalized IFO margin: 38% in Q1 2010 compared to 30.7% in Q1 2009• Growth in Gross Profit

Increase of production volumes• Higher absorption of OPEX

IFO margin

Normalized IFO margin

13.1%10.4%

38.2%30.7%

38.0%30.7%

77

Shavers – U.S. market evolution

Source: IRI FDMX – March 10

RefillableTotal

One Piece

U.S. market – % change vs YAG – Dollar sales

2.6%

0.8%1.2%

2.2%

4.1%

7.9%

3.8%

-1.8%

0.8%

-1.4%

7.5%

0.1%

1.4%

6.3%

1.2%

2.5%

0.3%

-0.8%

2005 2006 2007 2008 2009 YTD March 2010

78

Shavers


66.458.9Net Sales



10.51.7IFO


NET

SA

LES

IFO

•Continued strong growth in Latin America

Both twin-blade and 3-blade products contributing to the positive performance• Good performance in Europe Unusually low base period in 2009 due to timing of promotional activity• Slight growth in North AmericaIncrease of both net sales and market shares with new products, including BIC® Flex4™ and BIC® Hybrid Advance™, contributed to the growth.

Normalized IFO margin: 15.7% in Q1 2010 compared to 2.8% in Q1 2009• Increase of Gross Profit resulting from

Positive volume absorption due to sales increaseProductivity improvement

IFO margin

Normalized IFO margin+10.9%

+0.6% 2.8%2.8%

15.8% 15.7%

79

BIC APP

IFO margin

-8.63.4IFO

-2.93.4Normalized IFO

69.733.7Net Sales

Q1 2010Q1 2009In million eurosN

ET S

ALE

SIF

O

• -3.6% on a comparative basisAdvertising and Promotional Products market trends improved slightly in Q1 2010, although trends are still negative, particularly in hard goods BIC Graphic clearly outperforming thanks to market share gainsNorwood’s performance in line with industry trends

• Reported IFO margin: -12.3%Impact of year-end closure of Norwood headquarters and one factory, both in the U.S.• Normalized IFO margin: -4.2%Antalis PP and Norwood PP consolidationSeasonal impact of calendar business (inventory building)

IFO margin

Normalized IFO margin

Integration plan on trackIn Europe, centralization of warehousing activitiesIn North America, consolidation of manufacturing expertise

Approximately 11 million euros additional costs in 2010Approximately 11 million euros annual gains expected, starting in 2011

10.1%10.1%

-12.3%

-4.2%

Q1 09 Q1 10

80

+21.6%

Change at constant

currencies*

+8.8%

Change on a comparative

basis*

+31.7%47.836.3Income from Operations

+21.3%179.4147.9Gross Profit

+22.7%378.3308.4Net Sales

ChangeQ1 2010Q1 2009BIC GroupIn million euros

*: see glossary

Q1 2010: From Net Sales to IFO

81

+1.5

+1.5

-0.6

-1.6

Q1 2009 Gross Margin Brand support OPEX & otheroperatingexpenses

Q1 2010Normalized

Exceptionals Q1 2010

- 6.6 million euros related to restructuring+0.7 million euros related to real estate gain

Improvement of Consumer Business Gross Profit wasoffset by the consolidation of Norwood PP and Antalis PP

Brand support stable in absolute terms but down as a % of sales, resulting fromthe Q1 sales increase

OPEX relativelystable as a % of sales

Favorable FX impact compared to last year

Q1 2010 Income From Operations margin

12.6%11.8%

14.2%

82

Q1 2010 From IFO to Group Net Income

1.1-Income from Associates


- 5.9-Exceptional items

0.730.56EPS

48,283,56348,134,632Number of shares outstanding net of treasury shares

35.426.8Group Net Income

16.413.2Income tax

50.740.0Income before Tax

32.4%33.0%Tax rate

2.9

47.8

Q1 2010

3.7Finance revenue/costs

36.3IFO

Q1 2009BIC GroupIn million euros

-0.8 million euros: higher net interest expenses

Cello PensJanuary- March 2010

Net sales up low double digit

83

+4.3

-8.9

+46.9

December 2009 NetCash Position

Q1 2010 cash fromoperating activities

Q1 2010 CAPEX Others March 2010 Net CashPosition

Net Cash Position

305.3

347.6

In million euros

84

2010: outlook

Moderate net sales growth on a comparative basis and slight improvement of normalized IFO margin

compared to FY 2009

Discipline maintained on cash generation

Consumer business

A transition year for BIC APP with the achievement of Europe restructuring and the launch of the integration plan in the U.S. in a still fragile and

volatile business environment

Advertising and Promotional

Products


AppendixAppendix

86

Q1 2010 net sales – main exchange rate evolution vs. euro

% of salesAverage rate

Q109Average rate

Q110 % of change

US Dollar 36% 1.30 1.38 -6.4%

Brazilian Real 12% 3.02 2.51 17.0%

Mexican Peso 5% 18.75 17.66 5.8%

Canadian dollar 3% 1.62 1.44 11.1%

Australian dollar 2% 1.97 1.53 22.1%

South African Zar 2% 12.98 10.44 19.6%Non Euro European countries 4%

Sweden 10.94 9.96 9.0%Russia 44.82 41.28 7.9%Poland 4.50 3.99 11.2%

British Pound 0.91 0.89 2.3%

87

From reported IFO to Normalized IFO


-6.6-Restructuring costs

0.7-Gain on Real Estate

47.836.3IFO as Reported

Q1 2010Q1 2009BIC GroupIn million euros

88

15.3%

13.8%

239.6

216.0

-0.6%

+10.1%

+10.0%

1,562.7

FY09

17.9%

15.9%

72.6

64.4

-3.4%

+0.7%

+3.1%

404.7

Q209

17.3%

16.9%

71.9

70.2

-0.2%

+14.3%

+14.0%

415.0

Q309

13.5%

10.4%

58.6

45.0

+2.1%

+25.6%

+21.9%

434.6

Q409

53.736.3Normalized IFO*

11.8%

11.8%

36.3

-0.8%

-0.8%

+0.1%

308.4

Q109

14.2%Normalized IFO margin*

+8.8%YoY changes on a comparative basis*

12.6%IFO margin

47.8

+21.6%

+22.7%

378.3

Q110

IFO

YoY changes at constant currencies*

YoY actual changes

Net Sales

BIC GroupIn million euros

Group Quarterly figures

* see glossary

89

18.4%

18.3%

56.7

56.4

308.6

Q110

16.4%

15.1%

209.5

192.1

1,274.3

FY09

18.9%

15.3%

66.6

54.1

352.8

Q209

19.8%

19.5%

64.6

63.6

326.4

Q309

14.1%

12.9%

45.2

41.4

320.4

Q409

32.9Normalized IFO*

12.0%

12.0%

32.9

274.7

Q109

Normalized IFO margin*

IFO margin

IFO

Net Sales

BIC Group ConsumerIn million euros

Group Consumer

* see glossary

90

Stationery Consumer

9.6%

8.5%

48.9

43.3

509.6

FY09

7.4%

6.9%

8.3

7.7

112.6

Q110

14.8%

13.0%

23.6

20.7

158.8

Q209

12.6%

12.1%

16.9

16.3

134.3

Q309

3.8%

2.3%

4.4

2.6

116.4

Q409

3.7Normalized IFO*

3.7%

3.7%

3.7

100.1

Q109


IFO margin

IFO

Net Sales

Stationery ConsumerIn million euros

* see glossary

91

Lighters

34.0%

32.1%

135.7

127.9

398.9

FY09

38.0%

38.2%

40.7

40.9

107.0

Q110

36.2%

28.9%

35.3

28.2

97.6

Q209

37.2%

37.2%

36.4

36.4

97.8

Q309

32.0%

31.4%

34.8

34.2

108.7

Q409

29.1Normalized IFO*

30.7%

30.7%

29.1

94.8

Q109


IFO margin

IFO

Net Sales

LightersIn million euros

* see glossary

92

12.5%

11.3%

33.5

30.3

268.8

FY09

15.7%

15.8%

10.4

10.5

66.4

Q110

12.3%

9.4%

8.7

6.7

70.9

Q209

17.9%

17.6%

12.7

12.5

70.8

Q309

15.3%

13.9%

10.4

9.5

68.1

Q409

1.7Normalized IFO*

2.8%

2.8%

1.7

58.9

Q109


IFO margin

IFO

Net Sales

Shavers In million euros

Shavers

* see glossary

93

-8.8%

-9.7%

-8.5

-9.4

97.0

FY09

-11.9%

-11.7%

-2.7

-2.6

22.6

Q110

-4.2%

-5.7%

-1.1

-1.4

25.5

Q209

-6.0%

-6.6%

-1.4

-1.5

23.4

Q309

-16.5%

-17.9%

-4.5

-4.9

27.2

Q409

-1.6Normalized IFO*1

-7.4%

-7.4%

-1.6

20.9

Q109


IFO margin

IFO1

Net Sales

Other Consumer ProductsIn million euros

Other Consumer Products

* see glossary

1: IFO and Normalized IFO include unallocated group expenses as well as allocation of existing OPEX. Excluding the impact of those 2 items, Other Products are profitable

94

10.4%

8.3%

30.1

23.9

288.4

FY09

-4.2%

-12.3%

-2.9

-8.6

69.7

Q110

11.6%

19.9%

6.0

10.3

51.9

Q209

8.2%

7.5%

7.3

6.6

88.6

Q309

11.7%

3.1%

13.4

3.6

114.2

Q409

3.4Normalized IFO*

10.1%

10.1%

3.4

33.7

Q109


IFO margin

IFO

Net Sales

BIC APPIn million euros

Advertising & Promotional Products(BIC APP)

* see glossary

95

Miscellaneous

• Capital evolution:

– Authorized share capital on March 31, 2010: 48,683,418 shares

96

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. Figures at constant perimeter exclude the impacts of acquisitions and/or disposables that occurred during the current year and/or during the previous year, and this untiltheir anniversary date.

• Normalized IFO: normalized means excluding restructuring and real estate gains

.

97

2010 Agenda

Conference Call October 20, 20103rd Quarter 2010 Results

Conference Call August 4, 2010 2nd Quarter 2010 Results

Meeting (BIC headquarters) May 12, 20102009 Shareholders’

Meeting

All dates to be confirmed

98

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 “Reference Document” filed with the French financial markets authority (AMF) on 01 APRIL 2010

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