Shaver Presentation April 06 FINAL

8/8/2019 Shaver Presentation April 06 FINAL

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BIC Group Shaver Presentation

Investor Relations Department: +33 (0)1 45 19 52 26 [email protected] [email protected] www.bicworld.com

APRIL 2006
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Honor the past


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Invent the future


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History

19941975 20001999 2003 2004

2005 2006


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BIC Categories

2005 Full Year Results

27%

17%

4%

52%

Stationery

Lighter

Shaver

Other

Net Sales Income From Operations

43%

49%

8%


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Organization Structure For Shavers

Consumer StrategiesResearch and New Products

Manufacturing

Quality Assurance

EuropeMiddle East / Africa / Asia

North America / Oceania

Latin America (incl. Mexico / CA)

Global Category Management Geographic Management


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Organization Structure For Shavers

Consumer StrategiesResearch and New Products

Manufacturing

Quality Assurance

Sales and Customer RelationsCustomer / Trade Marketing

Customer Supply / Logistics

Local Operations

Global Category Management Geographic Management


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Presentation Agenda

Page

The Wet Shave Market 10

BIC Shaver Strategy 32

Strategy Implementation 38

BIC Strategy Results 46


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DOUBLE EDGE individual blades

ONE-PIECE disposable / throwaway shavers

SYSTEMS handle and cartridge shavers

Electric / Power Shavers Braun, Remington, Philips

Chemical Depilatories Veet

Manual Depilatories Wax, Tweezers

Electrolysis

Laser Hair RemovalShave Preparations Foams, Gels, Creams

After Shave Moisturizers, Skin Conditioners

The Hair Removal Market

Salons


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The Wet Shave Market


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Systems

One-piece

Double-edge


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2005 Estimated Global Market Size

0

4

8

12

16

Systems One-Piece Double Edge

Billion unitsVolume

Billion euroValue

0

2

4

6

Systems One-Piece Double Edge



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7 billion euro (retail)

One-piece

37%

Systems

63%

Value

-0.6%

+5.8%

Excluding Double Edge

10 billion units

Systems

31%

One-piece69%

Volume


2005 Global Market Size


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5 Year Market Trend - US + WE

Volume

Billion units Billion euro

Value

0

1

2

3

4

2000 2001 2002 2003 2004 2005

0

1

2

3

4

2000 2001 2002 2003 2004 2005

One-piece

Systems


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Activity from 2000

GILLETTE


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Activity from 2000

SCHICK / WILKINSON


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Activity from 2000

BIC


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Activity from 2000

% of 2005 Sales from New Products (euro)

TOTAL WET SHAVE

USA

0 50 100

Bic

Schick

Gillette

0 50 100

Bic

Schick

Gillette

WESTERN EUROPE

BIC BIC


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Activity from 2000

% of 2005 Sales from New Products (euro)

TOTAL One-piece

WESTERN EUROPE USA

0 50 100

Bic

Schick

Gillette

0 50 100

Bic

Schick

Gillette

BICBIC


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F O Pi


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Focus on One-Piece

Global Share of One-piece

%Share

ofOne

Piece

VOLUME SHARE VALUE SHARE

0

20

40

60

Gillette Bic Schick Private Label0

20

40

60

Gillette Bic Schick Private Label BICBIC

K Ob ti


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Key Observations

Triple-blades will play an increasingly important rolein the future of one-piece Shavers

F W


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Focus on Women

Market SegmentationWomen vs. Men

Men

79%

Women

21%

VOLUME

Men

77%

Women

23%

VALUE

Focus on Women


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Focus on Women

Market Segmentation Evolution

TOTAL WET SHAVE2005 Value Share

0

50

100

Men Women

BRAZIL

0

50

100

Men Women

WESTERN EUROPE

0

50

100

Men Women

USA

Focus on Women


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0

30

60

90

2000 2001 2002 2003 2004 2005

Focus on Women

Market Segmentation Evolution

Women vs. Men

One-piece Value Share

USA

Value

Share

One-Piece

0

30

60

90

2000 2001 2002 2003 2004 2005

WESTERN EUROPE

0

30

60

90

2000 2001 2002 2003 2004 2005

Women value

Share

Men ValueShare

Focus on Women


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Focus on Women

SYSTEMS

ONE-PIECE

Key Observations


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Key Observations

Triple-blades will play an increasingly important rolein the future of one-piece Shavers

Women products will play an increasingly importantrole in the future of Wet Shave

Pricing Evolution


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Pricing Evolution

Total Western Europe + USA

0,31 0,32 0,34 0,360,39 0,41

1,611,52

1,37

1,231,12

0,98

2000 2001 2002 2003 2004 2005

One-piece Syst

Pricing Evolution


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100

257

345

354

383

386

431

458

458

336

Blue II

Sensor XL

Mach 3

Venus

Quattro

Venus Divine

Mach 3 Turbo

Intuition

Mach 3 Power

Venus Vibrance

Pricing Evolution

SYSTEM REFILLSUSA Retail Prices per cartridge

Source : IRI (US FDMX w/o WalMart, initial coverage rate 55%) BIC exchange rate 2004

Pricing Evolution


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Pricing Evolution

44

100

127

188

244

244

276

324

512

Classic

Blue II

Custom Plus

Comfort 3

Soleil

Comfort 3 Adv

Xtreme 3

Sensor 3

Venus Disp

ONE-PIECEWestern Europe / US Average

Source : Nielsen (initial coverage rate 77%) andIRI (US FDMX w/o Wal Mart, initial coveragerate 55%) BIC exchange rate 2004

Key Observations


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Key Observations

Triple-blades will play an increasingly important role

in the future of one-piece Shavers

Women products will play an increasingly important

role in the future of Wet Shave

Gillette consistently pushes the upper limits of

pricing in both Systems and One-Piece


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BIC Shaver Strategy

BIC Shaver Strategy


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BIC Shaver Strategy

Our vision: offer our consumers quality products at reasonableprices in all segments of the One-piece Shaver Category

BIC A quality shave at a reasonable price!

BIC Shaver Strategy


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BIC Shaver Strategy

1. Invest in R&D to develop new products that meet consumerexpectations in a rapidly advancing technological market. The3 areas of R&D focus are :

Blade Edge

Shaver Head Geometry

Ergonomics and Aesthetic

Design

Our strategy

BIC Shaver Strategy


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BIC Shaver Strategy

Blade Edge

Finding the proper balance of physicalproperties to deliver closeness, comfort, fluidityand safety

Shaver Head Geometry

Understanding the impact of inter relatedvariables like angles and spacing using state ofthe art computer simulation

Ergonomics & Aesthetic DesignFinding the proper balance of ergonomicfeatures with an aesthetically appealing design

BIC Shaver Strategy


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gy

Ergonomics and aesthetic design

BIC Shaver Strategy


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gy

1. Invest in R&D to develop new products that meet consumerexpectations in a rapidly advancing technological market.

2. Focus on our development effort and marketing activity on thefast growing triple blade segment for both men and women.

3. Leverage our strength in low cost manufacturing to ensurethat our triple blade products still offer great value to

consumers.

Our strategy


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BIC Strategy Implementation


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Launched in Europe / USA in2004

Very strong consumer and

customer acceptance

Challenging for market share

leadership in Womens triple-blades

Very strong purchase rates

consumer satisfaction

Focus on triple-blades



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Launched in Europe / USA inMarch 2005

Positive customer acceptance

Expand shelf share and build

on positive momentum of

original BIC

Soleil



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Launching in Europein March 2005

Accelerate consumer trade-up

toward triple-blades

Bridge the price gap between

premium twins and triples



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Launching in the US in 2006 to

increase trial of the BICComfort 3

franchise

Add a feature to BICComfort 3:the pivoting head

Same price, more value forconsumer!




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Launching in Europe in 2006

Accelerate consumers trade-up to triple-blades.

Bridge the price gap between

premium twins and triples



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BIC Strategy Results



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KEY STRATEGIC PRINCIPLES

Invest in R&D to develop new products that meet consumer

expectations in a rapidly advancing technological market.

Focus efforts on the fast growing triple blade segment for both menand women

RESULTS



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Measure of consumer satisfaction

% of households that repurchase a product after theinitial purchase

Source : IRI household panel tracking the purchasesof 65,000 households in the USA

Benchmark vs. Key Competitors

KEY METRIC Repurchase Rate



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REPURCHASE RATE5-Feb-05

14,8%

30%

43%

0

30

60

Gillette Sensor 3 Schick Xtreme 3 Bic Comfort 3

15%



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14,8%

30%

43%

0

15

30

Gillette Sensor3 Women

Schick Xtreme3Women

Bic Soleil

REPURCHASE RATE5-Feb-05

15%



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2005 Volume Share by Segment

WESTERN EUROPE USA

12,6%

32,4%

0

50

100

BIC Share of Tw in

Blade

BIC Share of triple

Blade

11,3%

26,7%

0

50

100

BIC Share of Tw in

Blade

BIC Share of triple

Blade

11%

27%

13%

32%

Shaver Presentation April 06 FINAL

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