group presentation for investors - bic€¦ · group presentation for investors. nine months 2016....

Group Presentation for Investors

Nine months 2016

27-APRIL-2016

Group and category highlights

Consumer business(87% of total sales) +5.0%

Developed Markets +4.0%

Developing Markets +7.0%

BIC Graphic(13% of total sales) +4.1%

GROUP 9M 2016 KEY FIGURES

3

Normalized* Income from Operations: 313.1 million euros (-8.8%)

Net Sales: 1,692.9 million euros

*See glossary

+0.6%

+4.9%

As reported Constantcurrency basis

20.4%18.5%

19.2%

9M 2015 9M 2016

Exc

l. sp

ecia

lbo

nus Consumer

business 21.2% 21.8%

BIC Graphic -0.2% 1.2%

BIC GraphicNormalized IFO

margin

Normalized IFO margin excl. special

bonus

GROUP 9M 2016 KEY FIGURES

5.36

4.55

9M 2015 9M 2016

360.3

448.0

208.1

September 15 Dec. 15 September 16

4

EPS*: -15.1%In euros In million euros

Net Cash Position

*Group share

9M 2016CONSUMER BUSINESS

+7.0%

+1.8%

+7.7%

+7.2%+4.7%

+3.2%+5.0%

Q1 2016 Q2 2016 Q3 2016 9M 2016

31% DEVELOPING

MARKETS

27%EUROPE

42%NORTH AMERICA

EUROPE

NORTH AMERICA

DEVELOPING MARKETS

1,476.0 million euros Net Sales

5

Change on a constant currency basis Breakdown by geography

BIC STATIONERY IN 9M 2016

13.6%7.1% 9.1%

17.1%17.5%

10.4%3.9%

14.0%10.3%

10.8%

Net Sales growth on a

constant currency basis*

In million euros Q1 2016 Q2 2016 Q3 2016 9M 2016

Net Sales 156.0 230.7 184.4 571.1

IFO 11.1 38.8 7.2 57.1Normalized IFO 11.1 40.3 7.2 58.6

• Continued investment in Brand Support in Europe and North America• Increase in operating expenses

*See glossary

6

+1.8%

+7.9%

+2.5%+4.0%

+6.1%

+2.4%+3.5%

+4.6%

2015 2016 Excl. Special bonus

Normalized* IFO margin

NET SALESEurope• High single-digit increase • Good Back-to-school sell-out, especially in France and UK• Market share gains in France for the 12th year in a row

North America• Low-single digit growth • Market share gains• Performance of our “Champion brands”

Developing markets• Latin America: Low-single digit growth (strong Q3)• Middle-East and Africa: very strong growth • Cello Pens: stable domestic sales in a competitive

environment (rationalization of our product portfolio and focus on more value-added items)

NORMALIZED IFO

Q1 Q2 9MQ3

Q1 Q2 9MQ3

BIC LIGHTERS IN 9M 2016

7

37.6%38.0%

39.5% 41.6% 40.5% 39.8% 41.7% 39.7% 40.1%

40.6%




Net Sales 163.6 177.2 167.6 508.5IFO 62.1 70.6 68.9 201.6Normalized IFO 62.1 71.7 70.0 203.8

*See glossary

+9.7%

+5.4%+9.3%

+5.4% +5.2%+6.5% +8.1%

+5.7%



NET SALES

Europe• Growth of nearly 10%• Good performances in Western Europe, especially in

Germany and Austria• Very dynamic trends in Eastern Europe (distribution gains)

North America• Low single-digit growth• Continued success of our added-value sleeved lighters

Developing markets• Latin America: high single-digit growth • Middle-East and Africa: double-digit growth

NORMALIZED IFO

• Higher Gross Profit margin

Q1 Q2 9M

Q1 Q2 9MQ3

Q3

SHAVER MARKET EVOLUTION

RefillableTotal One Piece

-1.0%-3.3%

+0.5%

YTD June 2016 -4.6%-5.8%

-3.7%

YTD September 2016

8

Source: USA: IRI MULO – YTD December 2015 & September 2016Europe: Nielsen – YTD December 2015 & June 2016 (France, Spain, Italy and Greece)

% change vs YAG – value

USAUSA

September 2016Western Europe

June 2016

BIC SHAVERS IN 9M 2016

9

21.3%10.7% 12.9%

19.1%13.8% 17.0%

19.8% 19.1%14.7%

15.4%




Net Sales 117.8 120.1 111.8 349.7

IFO 12.6 15.4 22.2 50.2Normalized IFO 12.6 16.6 22.2 51.4

*See glossary

+14.7%+10.9% +9.5%+9.0% +10.3%

+1.4%

+11.4%+7.1%



NET SALES

Europe• High single-digit growth• Good performance in Eastern Europe

North America• Stable net sales• Market share gains : +1.9 points to 28.6%1• Successful new products launches and “best value for

money” positioning strategy

Developing markets• Latin America: double digit growth• Middle-East and Africa: high-single digit growth

NORMALIZED IFO• Increased investment in research and development• Increased investment in brand support, notably in Europe, in the U.S.

and in Latin America• Positive FX impact on Gross Profit margin in Q3

1 Source: IRI total market YTD through 25-SEPTEMBER-2016 (one-piece shavers) – in value terms.

Q1 Q2 9MQ3

Q1 Q2 9MQ3

YOURLOGOHERE BIC GRAPHIC IN 9M 2016

10




Net Sales 64.1 69.5 83.3 216.9

IFO -9.0 1.4 6.7 -0.8

Normalized IFO -9.0 1.8 6.8 -0.4

*See glossary

+2.4%+4.6% +1.8% +0.3%

-3.4%

+7.2%

+0.0%+4.1%



NET SALES

Sales of Writing Instruments and Hard Goods continued to be buoyed by our “Good Value” line and new products

Q3 2016 net sales were helped by a favourable timing impact in Calendars (i.e., earlier shipments when compared to last year)

NORMALIZED IFO

• Lower operating expenses compared to 9M 2015

The review of the strategic alternatives for BIC Graphic isproceeding as planned.

-6.7%

-14.0%-9.3%

-3.0%

2.5%5.6%8.2%

-0.9%-0.2%

1.2%

Q1 Q2 9MQ3

Q1 Q2 9MQ3

9M 2016Consolidated results

9M 2016: FROM NET SALES TO NORMALIZED IFO

BIC GroupIn million euros 9M 2015 9M 2016

Change as reported

Change on a constant currency

basis*

Net Sales 1,682.3 1,692.9 +0.6% +4.9%

Gross Profit 842.6 845.9 +0.4%

Normalized* IFO 343.4 313.1 -8.8%

Income from Operations 345.7 307.7 -11.0%

*See glossary

12

+1.9-1.4 -0.7

Q3 2015 Normalized* IFO margin Change in cost of production** Total brand support*** OPEX and other expenses Q3 2016 Normalized* IFO margin

• Promotions and investments related to consumer and business development support accounted for in Gross Profit Margin : -0.4

• Advertising, consumer and trade support : -1.0

KEY COMPONENTS OF Q3 2016 NORMALIZED* INCOME FROM OPERATIONS MARGIN

19.0%

13

*See glossary**Gross Profit margin excluding promotions and investments related to consumer and business development support.***Total Brand Support: consumer and business development Support + advertising, consumer and trade support.

18.8%

+0.5 -1.0 -0.7 -0.7

9M 2015 Normalized* IFOmargin

Change in cost ofproduction**

Total brand support*** OPEX and other expenses 9M 2016 Normalized* IFOmargin excluding the impact

of the special employeebonus

Impact of the specialemployee bonus

9M 2016 Normalized* IFOmargin

• Promotions and investments related to consumer and business development support accounted for in Gross Profit Margin : -0.2

• Advertising, consumer and trade support : -0.8

KEY COMPONENTS OF 9M 2016 NORMALIZED* INCOME FROM OPERATIONS MARGIN

20.4%19.2%

14

*See glossary**Gross Profit margin excluding promotions and investments related to consumer and business development support.***Total Brand Support: consumer and business development support + advertising, consumer and trade support.

18.5%

• Impact on Gross Profit: -0.4

• Impact in OPEX : -0.3

9M 2016 FROM IFO TO GROUP NET INCOME

In million euros 9M 2015 9M 2016

IFO 345.7 307.7

Finance revenue/costs 17.9 -2.2

Income before Tax 363.6 305.4

Income tax 109.2 91.7

Tax rate 30.0% 30.0%

Non-controlling interests 1.5 -

Net Income Group share 252.9 213.7

Number of shares outstanding net of treasury shares 47,180,102 46,955,299

EPS 5.36 4.55

Unfavorable 9M 2016 fair value adjustments

to U.S. dollar denominated financial assets when compared

to December 2015.

15

BALANCE SHEET

16

158162 160

151155

164

December2013

September2014

December2014

September2015

December2015

September2016

6572

60

6963

66

December2013

September2014

December2014

September2015

December2015

September2016

BIC GroupIn million euros

December2014

September2015

December2015

September2016

Total Working Capital 594.7 629.0 605.2 672.1

Of which inventories 441.1 463.6 478.4 507.4

Of which Trade and other receivables 453.8 501.1 440.0 499.6

Of which Trade and other payables -119.1 -125.3 -124.9 -126.7

Inventories in days Receivables in days

NET CASH POSITION

17

448.0

208.1

+297.4 -79.1

-120.6-277.0

-60.8+0.2

December 2015 NetCash Position

Operating cash flow Change in workingcapital and others

CAPEX Dividend payment Share buyback,exercise of stock

options and liquiditycontract

Others September 2016 NetCash Position

Operations

In million euros

Net Cash From Operating activities +218.3 M€

2016Increased investments to

support medium- and long-term profitable growth

2011 – 20155 YEARS OF ROBUST OPERATIONAL PERFORMANCE

19* See glossary

+3.1% +2.8%

+3.6%

+4.9%

+6.2%

2011 2012 2013 2014 2015

19.7% 19.4%18.2% 18.7% 19.3%

2011 2012 2013 2014 2015

108.8

186.7167.5

194.4 203.6

2011 2012 2013 2014 2015

5 years Average Normalized Income From Operation margin: 19.1%

5 years Average Annual Organic Growth*: +4.1%

5 years Average Annual Free Cash Flow Generation*: 172.2 million Euros

2016 OUTLOOK

20

Continue to deliver solid sales growth

Increase investments in Brand Support and Research & Development

Accelerate Development CAPEX

STATIONERY IN 2016

Leverage Champion BrandsFocus on improving operations and building capacity to sustain growth in India (Cello Pens)

21

23% 25%

2010 2015

New Products as % of Sales

36%45%

2010 2015

Champion Brands as % of Sales

LIGHTERS IN 2016

22

Continue to rely on our safety and best quality added-value lighters to gain distribution, notably Europe and Developing Markets

Leverage the added-value sleeve design • New special edition introduction• Marketing campaigns

2011 2012 2013 2014 2015

BIC® Lighters Net Sales Growth

20%

23%24% 25%

26% 27%

2010 2011 2012 2013 2014 2015

Sleeve as % of total Lighters sales

Sleeves CAGR: +10.8%

Total Lighters CAGR: +6.3%

SHAVERS IN 2016

23

49% 61%

2011 2015

% of Value-added Products in total sales

North AmericaBIC® Soleil Shine™: BIC’s best technology, specifically designed to make the shaving experience better and continue trading up women one-piece usersBIC® Hybrid Comfort 3™ (12 pack version): BIC’s best seller, now in an even better "value for money" offer

Latin AmericaBIC® Miss Soleil Colour Collection: affordable performance now available in 4 vibrant colors

Launch of 2016 new products

YOURLOGOHERE BIC GRAPHIC IN 2016

Considering the recent evolution of the Promotional Products Industry’s environment, the Board has decided to initiatea review of strategic alternatives for BIC Graphic

- Conclusions expected end of 2016

24

2016 - INCREASE INVESTMENTS IN BRAND SUPPORT AND RESEARCH & DEVELOPMENT

– Accompany New Product launches– Reinforce positions in developing

markets – Improve in-store visibility– Strengthen Brand awareness

25

Product quality and performance New technologies and new added-value products

Brand Support to Research and Development in

ACCELERATE DEVELOPMENT CAPEX

26

2016: close to 60% of total CAPEX

*Capacity + new buildings and land + new products

22 22

8

24

36

68

52 53 50

28% 26%

16%

38% 41%

54%48% 47%

41%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

2007 2008 2009 2010 2011 2012 2013 2014 2015

Development* Capex in million eurosDevelopment* Capex as % of total Capex

Development* CAPEX

CAPEX IN 2016MAIN PROJECTS

– Additional capacities– Extended R&D centers

27

New buildings/Land

Additional machines

Molds Tooling

Manaus (BR) • Saltillo (MEX)Athens (GR)

ShaversRedon (FR) • Milford (USA)

Tarragona (SP)

LightersSamer (FR) • Marne-La-Vallée (FR)

Cello Pens (IN)

Stationery

2016 GROUP OUTLOOK

28

Mid-single digit growth in Net Sales (on a comparative basis)

Excluding major macro-economic disruptions or currencyfluctuations, 100 to 150 basis points decline in Normalized IncomeFrom Operation margin* due to accelerated Brand Support andR&D investments aimed at fueling profitable medium- and long-term growth while we expect to maintain a strong Net Cash fromoperating activities.

*Excluding the special bonus that has been awarded to employees who have not been granted shares under our performance share plan.

2016 OUTLOOK… AIMED AT FUELING LONG-TERM STRATEGIC PRIORITIES

Continue to create long-term value by outperforming our markets and growing sales organicallylow to mid-single digit thanks to:

29

Maintain strong cash generation to:Grow Normalized Income From Operations through increased productivity as we invest in our people and Brand Support and in Research & Development with a focus on quality and innovative new products

We offer simple, inventive and reliable choices to everyone, everywhere, every time

Expanded distribution networks in all geographies

Increased focus on value-added segments in Developed markets

Enlarged consumer base in Developing markets

Continue to grow the business organically

Finance strategic bolt-on acquisitions

Sustain total Shareholders’ remuneration

Group overview

HISTORY AT A GLANCE

31

1950 …Marcel Bich launches the BIC® Cristal, the first high quality ballpoint penat 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

1975 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, …)

A BALANCED PORTFOLIO OF ACTIVITIES

32

FY 2015 sales breakdown by category

33%

30%

20%

3%

14%

INTERNATIONAL FOOTPRINT

33

1950: France1954: Italy 1956: Brazil1957: “Sterling” zone (UK, Australia…) 1958: USA, Africa, Middle East1959: Scandinavian countries1965: Japan, Mexico1995: Eastern and Central Europe1997: Expansion in Asia2009: India (Cello)

24%

46%

30%

FY 2015 sales breakdown by geography History

DEVELOPINGMARKETS

NORTH AMERICA

EUROPE

CAPITAL OWNERSHIP (31-DEC-2015)

34

As of December 31, 2015, the total number of issued shares of SOCIÉTÉ BIC is 47,942,157 shares representing 69,464,111 voting rights.

42.72%BICH FAMILY

(Voting rights: 59.79%)

55.66%PUBLIC

1.62%TREASURY SHARES

Graph1

Public

Bich Family

Treasury shares

Ventes

0.4387

0.545

0.0163

Feuil1

Ventes

Public43.87%

Bich Family54.50%

Treasury shares1.63%

100.0%

STRATEGIC ASSETS

A large and diversified product portfolio aimed at answering consumers’ needs

Innovation: 12% of net sales through new products in 2015

Recognized brands

Historical international footprint- Present in more than 160 countries- 30% of 2015 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

35

Quality and Value product positioning

Brand…SProducts

Simple

Reliable

Inventive

At the right Price

BalanceSheet

€263.6M Free Cash Flow generation***

€448.0M Net Cash Position at the end

of 2015

Worldwide leadership

Stationerycc.9%

market share

Lighterscc. 50% market

share**

Shavers20% market share*

of one-piece in USA and Europe

Advertising & Promotional

Products

KEY STRENGTHS

36

N°2

N°1

N°2

N°2

* One-piece shavers in major markets (US, Europe, Latin America)** Outside Asia***Before acquisition and disposals

STRONG INTERNATIONAL BRANDS

37

BIC Stationery brand unaided awareness rate

10097 98 97

10098 98

9194

98

France United Kingdom Italy Spain Greece United-States Mexico Brazil South Africa Australia

MANUFACTURING NETWORK

38

Cello Pens: 2 factories

86% of the BIC® products are produced in BIC owned factories

90% in the consumer product business

65% in the advertising and promotional product business

BIC IN 2015OPERATIONAL PERFORMANCE

39

Net Sales growth on a comparative basis

4.6%3.3%

1.6%-0.6%

5.9%

3.1% 2.8% 3.6%4.9%

6.2%

17.9% 17.4%15.1% 15.3%

17.2%

19.7% 19.4%18.2% 18.7%

19.3%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


* See glossary

99.4

179.1

129.4145.7

297.2

204.6

115.6

185.4

225.7239.4

263.6

99.5

147.8

116.3144.3

115.1

221.9

108.8

186.7167.5

194.4 203.6

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

BIC IN 2015CASH GENERATION

40

Free Cash Flowbefore acquisitions and disposals*

Free Cash Flow after acquisitions and disposals*

In million euros

* See glossary

CAPEX

41

77 83

5363

89

125107 112

121

5.3% 5.9% 3.4% 3.4% 4.9%6.6% 5.7% 5.7% 5.4%

2007 2008 2009 2010 2011 2012 2013 2014 2015

Total Capex to sales

*Capacity + new buildings and land + new products

DevelopmentCapex41%

MaintenanceCapex32%

OtherCapex27%

USE OF NET CASH AND SHAREHOLDERS REMUNERATION

42

178 8 14

7249 40 26

242

101

2

80

10 26

99

179

129146

298

205

116

185

226239

264

25 58 6465

65

68

91

104

121

122135

5149

8531

131

182

15

58

53

74

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Business divestiture Share buyback Free cash flow* Ordinary dividend Exceptional dividend Acquisition

In million euros

* Estimates based on 31-DEC-2015 number of shares outstanding excluding treasury shares

121 million eurosin 2015

Investto preparethe future

USE OF CASH (1/2)

43

CAPEX

APPPromotional

productsEurope

Cello Pens(Partnership)

Writing instrumentsIndia

NorwoodPromotional

productsUSA

AngstromFuel CellCanada

Cello PensMajority stake

of 55%

Atchison ProductsPromotional

productsUSA

Cello PensMajority stake

of 75%

20092007 2009 2009 2011 2013 2014 2015Cello Pens

Majority stakeof 100%

1

74 million eurosin 2015

Bolt-on strategicacquisitions

USE OF CASH (2/2)

44

PAY-OUT RATIO

49% basedon 2015 results0.90 1.15

1.30 1.35 1.35 1.401.90

2.20 2.56 2.602.85

3.40

1.00 1.00

1.80

2.50

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Dividend per share Special DividendIn euros

39.925.7

1.9

42.0

101.4

1.6

80.2

10.226.3

62.3

2007 2008 2009 2010 2011 2012 2013 2014 2015 YTDSept.2016

In million euros

Ensure a steady growth of the

ordinary dividend

2

Sharebuy-back

3 Specialdividend4

STATIONERY

THE CONSUMER STATIONERY MARKET (1/3)

46

Total worldwide consumer stationery market = 8.6 billion Euros in 2015

Key geographical markets breakdown (in value) Breakdown by main segment (in value)

Europe26%

North America

18%Latin

America9%

Asia37%

India4%

Others6%

Pens56%

Mechanical pencils

5%

Marking17%

Coloring16%

Correction6%

Of which:23% Ball pens19% gel ink

All market shares are based on 2015 estimated suppliers net sales figures


47

India Latin America

NorthAmerica Asia

Europe

0.0%

5.0%

10.0%

Market trends by geographies (in value)Market growth (CAGR)

2015/2011

Size in million eurosBIC Estimates & Published Research

Graph1

India

Latin America

NorthAmerica

Asia

Europe

Growth

0.06

0.057

0.035

0.033

0.024

354.7

751.6

1553.3

3145.6

2205.4

Feuil1

PaysGrowthSize

India6.0%354.7

Latin America5.7%751.6

NorthAmerica3.5%1553.3

Asia3.3%3145.6

Europe2.4%2205.4

paysEuropeNorth AmericaAsiaLatin AmericaIndia

Taille2,205.401553.33145.6751.6354.7

Croissance2%4%3%6%6%

Europe2.4%2205.4

Feuil2

Feuil3

Others49.9%

Newell10.0%BIC*

9.2%Pilot6.2%

Mitsubishi5.8%

Faber Castle4.4%

M&G (China)4.4%

Crayola3.5%

Pentel2.8%

Zebra2.0%

Schwan-Stabilo1.8%


48

Total worldwide consumer stationery market = 8.6 billion Euros in 2015Breakdown by main supplier (in value)

BIC Estimate & Published Research – 2015 – Manufacturers figures – Pens, pencils, markers, coloring, correction* With Cello Pens

STATIONERY CONSUMER – BIC STRATEGY

Gaining market share in Developed countries (markets more or less flat) focusing on Champion Brands new products

Accelerating sales growth in fast growing countries (markets up mid to high single digit)

Developing geographical footprint

Focus on giving “more for your money” to consumers through best quality at the right price

Increased consumer-relevant innovation

49

Generate profitable growth through

STATIONERY CONSUMER: “QUALITY @ A BIC PRICE”

50

Historical and close

relationship with the trade

Iconicproducts

Strong brandsWorldwide leadership positions

Strong positionsin major market

segments Consumer trust for more than 50 years Innovation

More than 3m outlets

worldwide*

* Outside Cello Pens

2010- 2015 BIC STATIONERY CONSUMER KEY FIGURES

12.1%14.0% 15.0%

12.7% 12.5% 11.5%

2010 2011 2012 2013 2014 2015

51

FY 2015 Net Sales

FY 2015 IFO €83.7M€727.0M

Net sales change on a comparative basis

Volume +7.0% +6.0% +1.0% +0.3% +4.0% +2.0%

Value +6.7% +4.1% +2.6% +2.1% +4.2% +3.6%

Normalized IFO margin

Average

+3.4%

+3.9%

12.9%

BIC® PRODUCT RETAIL PRICE POSITIONNING

52

Ball pen Retail prices in FranceIn euros

Source : PVC recommended, 2016, BIC France CP, France Modern Mass Market

0.32 € 0.36 € 0.41 €0.73 €

1.46 € 1.63 €1.98 €

2.24 €2.53 €

4.45 €

Cristal medium Cristal Fashion Cristal like me M10 4 coulours Atlantis soft Cristal stylus Learner bell pen 4 coloursShine/Decor/Fluo

4 colours stylus

STATIONERY CONSUMER BIC POSITIONS IN MAJOR MARKET SEGMENTS*

53

N°1 in Ball Pen(21% market share)

N°1 in Mechanical Pencils

(13% market share)

N°1 in correction(19% market share)

N°2 in marking(5% market share)

*BIC Estimates – 2015 (in value)

N°1 in Western Europe

(18% market share)

N°2 in the U.S.(15% market

share)

N°1 in Latin America

(21% market share)

LIGHTERS

THE POCKET LIGHTER MARKETVOLUMES VS. VALUE

55

Volumes: 13.8 billion units Value: 4.9 billion euros

World Excl. Asia

Asia

BIC estimates for 2015 – Retail prices

35%

65%56%

44%

THE POCKET LIGHTER MARKETKEY PLAYERS OUTSIDE ASIA

56

Asian manufacturers

BIC

Other brandedLighters

57%cc. 30%

13%

32%

18%

Market shares in volume outside Asia Market shares in value outside Asia

cc.50%

BIC estimates for 2015 – Retail prices

Of whichFlamagas: 6%

Swedish Match: 5%Tokkai: 2%

Of whichSwedish Match: 6%

Flamagas: 6%Tokkai: 1%

Graph1

Asian

BIC

Others

Ventes

18%

0.32

0.55

0.13

Feuil1

Ventes

Asian32%

BIC55%

Others13%

Pour redimensionner la plage de données du graphique, faites glisser le coin inférieur droit de la plage.

OVERVIEW OF MANDATORY SAFETY REGULATION AROUND THE WORLD

57

1998

ISO: 1989CR: 1995

2000

2003

CR: 1992ISO: 1997

2003

ISO: 2004CR: 2016

20052011

2006

2007

2010

20062003

1994

1997

Child resistant

ISO 9994 and Child Resistant

ISO 9994

1999

LONG TERM VIEW OF SAFETY REGULATION IMPACTON LIGHTER SALES

58

Africa Asia Europe LatinAmerica*North

America*ISO 9994 conform lighters

Low quality lighters

Matches

* Real enforcement of the regulation

Graph1

NNN

N+1N+1N+1

N+2N+2N+2

N+3N+3N+3

N+4N+4N+4

N+5N+5N+5

N+6N+6N+6

N+7N+7N+7

N+8N+8N+8

N+9N+9N+9

N+10N+10N+10

N+11N+11N+11

N+12N+12N+12

N+13N+13N+13

N+14N+14N+14

N+15N+15N+15

Time scale

Matches


ISO9994 conform lighters

Value sales

20

1

1

22

1.5

1

23

2.5

1

23

4

1

22

6

1

20

8

1

18

10

1

15

12

1.5

12

14

3

10

15

6

9

15.5

9

8

16

12

7.5

15.5

15

7

15

18

6.8

14

20

6.6

12

21

Sales Europe

Off-Invoice Sales / Year (In M€ at Budget Rate 09)Off-Invoice / Year (In M€ at Budget Rate 09)

ACT 99ACT 00ACT 01ACT 02ACT 03ACT 04ACT 05ACT 06ACT 07ACT 08F3+9 09 - V25-MAR-09

Europe / Mea73.725375.21455978.62606879.3633789.31089599

NAO125.749877132.280749145.73365165.957788194.201421211.453247222.991367210.80619218.680759

Latin America31.20630631.70157936.26565648.13492859.23972265.44103370.69455674.00860976.689669

SALES

199819992000200120022003200420052006200720082009F2010F2011F2012F2013

USA ACTUAL43212481620222323

USA FCST2321222324

EU ACTUAL43212481620

EU FCST2022232321

EE ACTUAL432124

EE FCST48162022

TOTAL SALES ACTUAL432556132126314147

TOTAL SALES FCST4751616667

SALES

NN+1N+2N+3N+4N+5N+6N+7N+8N+9N+10N+11N+12N+13N+14N+15

Matches20222323222018151210987.576.86.6

Low quality lighters11.52.54681012141515.51615.5151412

ISO9994 conform lighters11111111.53691215182021

TOTAL EUROPE111110172133.536384040.839.6

00

Sales Europe

0

Europe / Mea

NAO

Latin America

Funnel tradi

USA ACTUAL

USA FCST

EU ACTUAL

EU FCST

EE ACTUAL

EE FCST

TOTAL SALES ACTUAL

TOTAL SALES FCST

Value sales

BIC LIGHTER SALES EXPENSSION

Conjoint

Matches


ISO9994 conform lighters

Value sales

SPLIT OF LIGHTS

Funnel MMM

FUNNEL ANALYSIS TRADITIONNAL MARKET

BIC Sales force100%100%

Retailer request50%50%

BIC & competition Sales force50%50%

50%50%

Advertising100%50%

Awareness75%38%

Call center push - Interest70%35%

65%33%

99% awareness - 85% unadded awareness75%24%

WHOLESALERS

BIC SUBSIDIARIES

CONSUMERS

RETAILERS

INTEREST

AWARE

PURCHASE INTENTION

DISTRIBUTION

EXCLUSIVITY

INTEREST

AWARE

INTENT

DISTRIBUTION

PURCHASE INTENTION

AWARE

High financial interest in selling low quality lighters. Direct BIC push inefficient. Indirect push powerful

Low rotation of asian lighters in sales. Little financial interest. Strong Goddwill for BIC

MAIN GAP 50 pts

MAIN GAP 35 pts

Feuil1

TODAY

Scenario 1Scenario 3Scenario 2Scenario 4Scenario 5Scenario 6

AsiansOther EuropeanBICAsiansOther EuropeanBIC

Price132634132650

Quality0510101010

Awareness54085406085

Total Utility0.8361.4442.1332.0122.0472.042

Not the know how and heavy investment

Huge investment - very low probability

Possible

PRICE

Asians0.13

Other europeans0.26

BIC0.34

QUALITY

Asians0

Other europeans0.05

BIC0.1

AWARENESS

Asians5%

Other europeans40%

BIC85%

Asian lighters

Other European manufacturers

BIC

Feuil1

Asians

Other europeans

BIC

Euro per lighter

RETAILER PURCHASE PRICE

Asians

Other europeans

BIC

CONFORMITY TO STANDARD

Asians

Other europeans

BIC

BRAND AWARENESS

FUNNEL ANALYSIS MODERN MASS MARKET

Advertising100%100%

Awareness50%50%

Financial, legal, risk manager50%50%

50%50%

99% awareness - 85% unadded awareness100%50%

Above std

Just at std

Below std

WHOLESALERS

BIC SUBSIDIARIES

CONSUMERS

RETAILERS

INTEREST

AWARE

PURCHASE INTENTION

DISTRIBUTION

EXCLUSIVITY

INTEREST

AWARE

INTENT

DISTRIBUTION

PURCHASE INTENTION

AWARE

Buyer interested in price. Direct action has low efficiency. Good suceess in including other customer decisions stackholder in negociation

PriceMS

Disposable lighters196%

Metallic lighters71%

Lighter case50.01%

Novelty lighters42%

Semi-luxury151%49

Luxury401%

BIC LIGHTER – STRATEGY

By promoting the extension and the total enforcementof international safety standards

By accelerating the development of value-added products (sleeves, cases and utility lighters)

59

Strengthen our position as the only lighter brand with worldwide strengths

BIC LIGHTERN°1 BRANDED LIGHTER MANUFACTURER

60

vs. market average

More than 50 automatic

quality controls

Consumer preference (U.S.)

Market leadership - Estimated market shares (in value)

Safety – Quality – Prevention & education

Integrated distribution network

cc. 50%

< 30%

> 70% > 65%

Worldwide* Europe North America Latin America

Dedicated Customer Support Teams in all countriesLargest distribution network

8%

10%

86%

Competitor B

Competitor A

BIC

* Excluding Asia

2006 – 2015 BIC LIGHTER KEY FIGURES

32.5% 32.1%29.2%

34.0% 36.2%38.9% 37.4% 37.0% 37.7% 38.2%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

61

FY 2015 Net Sales

FY 2015 IFO €260.9M€675.7M


Vol. -5.0% +3.0% +10.0% +8.0% +3.0% +3.8% +4.0% +5.0%

Value +5.6% +3.7% +0.8% +5.3% +11.6% +8.6% +4.3% +7.0% +8.3% +8.3%


Average

+3.9%

+6.4%

35.3%

BIC® LIGHTERS SALES EVOLUTION IN THE U.S.

100106

-1

+1+3 +1 +2

2009 CigaretteConsumption

Other CombustibleConsumption

Sleeves trade-up Distribution Gains Price 2015

62

Continue to leverage all growth drivers

In value2009-2015 : +6%

1.32 €

$1.59

1.28 €

0.41 €

1.13 €

$0.79 0.98 €

0.28 €

0.73 €

Europe(in euros)

USA(in dollar)

Brazil(in euros)

China(in euros)

BIC Other compliant lighter Non-compliant lighter

BIC® LIGHTER RETAIL PRICE POSITIONNING

63

Source: BIC (Reference J26 for Europe, USA, Brazil and J3 for China)Europe and Brazil : 2014 data – USA and China : 2015 data)

BIC® LIGHTER RETAIL PRICE PER FLAME

64

Based Indice 1

1.0 1.0 1.0 1.0

1.41.5

1.21.4

1.8

Europe USA Brazil China

BIC Other compliant lighter Non-compliant lighterSource: BIC (Reference J26 for Europe, USA, Brazil and J3 for China)Europe and Brazil : 2014 data – USA and China : 2015 data)

SHAVERS

THE SHAVER MARKET (1/6)

66

Total wet shave market in 2015: 12.6 billion euros

59%

40%

1%

REFILLABLE

ONE-PIECE

DOUBLE EDGE

Source: Euromonitor + Industry publications

WET SHAVE MARKET – REGIONAL STRUCTURE

67

in value

Source: Euromonitor 2015 / InternalEUR = Western Europe + Eastern Europe

Disposable System

32% 49%8% 8%

LAM 14%

NAM 7%

EUR 7%

NAM4%

ASIA3%

EUR2%

LAM1%

ASIA1%

NAM14%

EUR20%

LAM7%

ASIA7%

OCE1%

MEA1%

NAM4%

EUR3%

ASIA1%

MEA1%

Men74%

Women26%


68

Wet Shave market trend (in billion euros)

8.2 8.69.1 9.5

10.2 10.811.0

12.0 12.0 12.6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Euromonitor + Industry publications


69

Global Wet Shave Source of Growth – in value(CAGR 2008 to 2015)

PopulationGrowth

ConsumptionGrowth

Trading Up & Price Increase

27%33%

40%

2008 2015Source: Euromonitor 2015 + Internal estimate


70

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

14%

4%

86%

50%

0%

46%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Single Blade Twin Blades Triple Blades and More

16%

3%

80%

25%

4%

72%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Single Blade Twin Blades Triple Baldes and More

Western Europe USA

Source: USA = IRI MULO FY 2015Europe = AC Nielsen All countries FY 2015

9%5%

87%

65%

4%

30%

2007 2008 2009 2010 2011 2012 2013 2014 2015

Single Blade Twin Blades Triple Blades and More


71

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

Brazil

Source: AC Nielsen FY 2014

SHAVERS - STRATEGY

A complete and successful range of one-piece three, four and five-blade products for men (BIC 3™, Comfort 3™, Hybrid 3™, Flex 3™, Flex 4™, Flex 5™…)

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

Products offering a better value

Great value for money positioning

72

Strengthen our foundation in one-piece

2006 – 2015 BIC SHAVER KEY FIGURES

9.9%8.2%

4.1%

12.5%14.2%

18.0%17.1% 17.0% 17.8%

18.5%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

73

FY 2015Net Sales

FY 2015IFO €83.3M€452.0M


Volume +0.0% -4.0% +7.0% +3.0% +3.0% +3.8% +4.0% +1.0%

Value +6.2% +9.2% +3.9% +2.4% +7.6% +9.1% +10.1% +6.5% +4.1% +11.9%


Average

+2.2%

+7.1%

13.7%

ONE-PIECE MARKET SHARES IN EUROPE(16 COUNTRIES)

74

51%

16% 19%

Gillette BIC Schick

38%

18%15%

Gillette BIC Schick

Source: IRI Nielsen - Last 52 weeks ending December 2015 (Europe 16 countries)

In volume In value

ONE-PIECE MARKET SHARES IN USA

75

38%

27%

16%

Gillette BIC Schick

25%

31%

11%

Gillette BIC Schick

Source: IRI Nielsen - Last 52 weeks ending December 2015

In volume In value

ONE-PIECE MARKET SHARES IN BRAZIL

76

In volume In value

78%

17%

1%

Gillette BIC Schick

70%

22%

1%

Gillette BIC Schick

Source: IRI Nielsen - Last 52 weeks ending December 2015

BIC MARKET SHARES IN 3 AND MORE BLADES* DISPOSABLE SHAVERS SEGMENT

77

In volume

28%33% 31%

Europe United States Brazil

20%

29%25%

Europe United States Brazil

In value

Source: IRI Nielsen AC Nielsen and BIC estimates (December 2015)*Europe and Brazil : 3 and 4 blades / United States : 3, 4 and 5 blades

SHAVERS: QUALITY AND INNOVATION AT A REASONABLE PRICE

78

3, 4 & 5 blades men One-piece – US (USD)3, 4 & 5 blades women One-piece – US (USD)

0.301.37

1.502.002.002.00

2.333.00

3.333.66

BIC Silky TouchBIC Soleil TwilightSimply Venus 3B

BIC Soleil BellaQuattro Disposable

BIC Soleil GlowVenus Disposable

BIC Soleil ShineHydro Silk Disposable

Venus Embrace Disposable

0.500.650.67

1.001.251.25

1.502.00

2.332.83

3.33

Slim twinComfort 3Sensor 2

Hybrid 3 ComfortExtreme 3BIC Flex 3

Sensor 3BIC Flex 4

Mach 3Flex 5

Hydro 5

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

Women’s Refillable – US (USD)

2.87

3.10

Venus System

Quattro System

Walmart non-promoted price per unit - Ending September 2016

BIC GRAPHIC

YOURLOGOHERE

ADVERTISING AND PROMOTIONAL PRODUCTS HISTORY AND DEFINITION

80

Items 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

YOURLOGOHERE

ADVERTISING AND PROMOTIONAL PRODUCTS A LARGE AND GROWING BUSINESS

81

Estimated Supplier market sizeBetween €14-16 bn Euros

29%EUROPE

57%USA

14%REST OF THE WORLD

Source: PPAI and BIC estimates for 2015

YOURLOGOHERE

ADVERTISING AND PROMOTIONAL PRODUCTS A STRUCTURED BUT FRAGMENTED INDUSTRY

82

1 2 3 4

Manufacturing

Assembly

Sourcing

Multiple printing applications

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

Direct MarketingWEB, Catalogs, Samples, Telesales

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

Products are sold blank or imprinted

End-userCompanyDistributorSupplier

Special markets Hotel & lodging, Pharmaceutical, Tobacco, Government

YOURLOGOHERE


83

* mainly Apparel oriented

2014 US suppliers estimated market

share

2014 US distributors estimated market

share

71.6%

Alphabroder (6.3%)*SanMar (5.8%) *Polyconcept North America (4.1%)Bic Graphic North America (2.5%)Hit Promotional Products (2.1%)Ennis (2.0%)Bodek and Rhodes (2.0%)*S & S Activewear (1.6%)*Staton Corporate and Casual (1.0%)*Sunscope/Aprinta (0.9%)

Others

87.9%

Staples Promotional Products 2.1%4 Imprint 1.9%Proforma 1.7%BDA 1.2%Group II Communications/IMS 1.2%Halo Branded Solutions 1.0%AIA Corporation 0.8%Geiger 0.8%National Pen Corporation 0.7%Cintas 0.7%

Others

YOURLOGOHERE

Others5.2%

Wearables27.8%

Bags7.6%

Writing Instruments10.4%Drinkware7.6%

Desk/Office/Business Accessories

4.9%

Awards4.9%

Computers4.1%

Calendars3.3%

Health & Safety products

2.3%

Textiles2.6%

Housewares2.4%

Electronics1.6%

Food1.7%

Personnal1.4%

Magnets1.7%

Buttons/Badges2.0%

Stickers1.9%

Sporting Goods1.8% Games

1.7%

Automotives1.6%

Clocks and Watches1.2%

Gift cards0.4%


84

Estimated North American sales by product category

Source: PPAI

Graph1

Others

Wearables

Bags

Writing Instruments

Drinkware

Desk/Office/Business Accessories

Awards

Computers

Calendars

Health & Safety products

Textiles

Housewares

Electronics

Food

Personnal

Magnets

Buttons/Badges

Stickers

Sporting Goods

Games

Automotives

Clocks and Watches

Gift cards

0.052

0.2784

0.0763

0.1042

0.0756

0.0485

0.0486

0.0413

0.0332

0.0232

0.0263

0.0238

0.0157

0.0168

0.0141

0.0169

0.0197

0.0185

0.0179

0.0168

0.0161

0.0119

0.0042

Feuil1

Others5.2%

Wearables27.8%

Bags7.6%

Writing Instruments10.4%

Drinkware7.6%

Desk/Office/Business Accessories4.9%

Awards4.9%

Computers4.1%

Calendars3.3%

Health & Safety products2.3%

Textiles2.6%

Housewares2.4%

Electronics1.6%

Food1.7%

Personnal1.4%

Magnets1.7%

Buttons/Badges2.0%

Stickers1.9%

Sporting Goods1.8%

Games1.7%

Automotives1.6%

Clocks and Watches1.2%

Gift cards0.4%

100.00%

YOURLOGOHERE BIC GRAPHIC

85

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

YOURLOGOHERE

CALENDARS19%

STATIONARY49%

HARD GOODS32%

BIC GRAPHIC - HIGHLIGHTS AND KEY FIGURES

86

BIC Graphic Net Sales Breakdown by Products CategoryFull Year 2015

Graph1

Calendars

Stationery

Hard goods

Ventes

CALENDARS19%

STATIONARY49%

HARD GOODS32%

0.19

0.49

0.32

Feuil1

Ventes

Calendars19%

Stationery49%

Hard goods32%

Pour redimensionner la plage de données du graphique, faites glisser le coin inférieur droit de la plage.

100%

YOURLOGOHERE 2009 - 2015 BIC GRAPHIC KEY FIGURES

87

FY 2015Net Sales

FY 2015IFO €13.1M€319.3M


-18.9% -3.3% -10.4% -9.2% -5.0% +2.5% +1.6%

10.4%9.2%

7.8%7.1%

4.3%3.5% 3.3%

2009 2010 2011 2012 2013 2014 2015


SustainableDevelopment

MEASURE…

89

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

BIC®Cristal®

Pen

LighterBIC®Maxi

BIC®Classic

Single-bladeShaver

88% 7% 4% - 1%

87% 6% 5% - 2%

83% 11% 4%

78%

2%-

(shaverinc.usage)

… TO ECO-DESIGN …

90

Take into account our main impact: use of non renewable raw materials

Recycled plastic and metalPlastic from vegetal origin

Refillable products

Light and long lasting products

Reduce to the raw material weight

1

Maximum increaseof the duration of use

2

Use alternative materials

3

… OUR PRODUCTS

91

Light and long-lasting products overcoming the paradox of disposable vs. long-lasting

A trendsetting range

Eco-values on packagingfor stationery products

FRENCH ECOLABEL NF ENVIRONNEMENT BIC FIRST MANUFACTURER TO BE CERTIFIED

92

Cristal® Fine

Orange™ Fine

Clic Stic™

BIC Matic

Evolution™ 650

Evolution™ 655

Evolution™ coloring

Atlantis® Clic (in box only)

4 Couleurs™ fine BIC® Kids Visacolor™ XL

Cristal® Medium (uniquement en boîtes)

Evolution™ Black

Evolution™ coloring Triangle

4 Couleurs™ pro & 4 Colors™ Counter Pen

4 Couleurs™

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

93

BIC® C3 ® AdvanceTM BIC® Easy

-20%

1st step:

Reducingthe quantityof material

2nd step:

Have a longer durationof use

+=BIC® EASY 1

lighweight handle sold with 6 heads

=

-59% of environnemental

Impact on the duration

of use

60 days of shaving

Appendix

9M 2016 NET SALES MAIN EXCHANGE RATE EVOLUTION VS. EURO

95

% of sales

Average rate

Average rate

% of change % of sales

Average rate

Average rate

% of changeQ3 2015 Q3 2016 9M 2015 9M 2016US Dollar 47% 1.11 1.12 -0.4% US Dollar 46% 1.11 1.12 -0.1%

Brazilian Real 9% 3.90 3.62 7.5% Brazilian Real 7% 3.50 3.95 -11.3%

Mexican Peso 4% 18.20 20.95 -13.1% Mexican Peso 5% 17.32 20.45 -15.3%

Argentina 1% 10.27 16.70 -38.5% Argentina 1% 9.99 16.27 -38.6%

Canadian dollar 3% 1.45 1.46 -0.5% Canadian dollar 3% 1.40 1.47 -4.9%

Australian dollar 2% 1.53 1.47 3.8% Australian dollar 2% 1.46 1.50 -3.0%South African Zar 1% 14.38 15.70 -8.4% South African Zar 1% 13.66 16.69 -18.1%

Indian Rupee 3% 72.14 74.72 -3.5% Indian Rupee 3% 70.80 74.93 -5.5%Non Euro European countries 7% Non Euro European countries 6%

Sweden 9.42 9.51 -1.0% Sweden 9.37 9.38 -0.1%

Russia 69.75 72.07 -3.2% Russia 66.40 76.09 -12.7%

Poland 4.19 4.34 -3.5% Poland 4.16 4.36 -4.6%British Pound 0.72 0.85 -15.7% British Pound 0.73 0.80 -9.4%

34%

30%

21%

2%

13%

OTHER CONSUMERPRODUCTS

BIC GRAPHIC

SHAVERS

STATIONERY

LIGHTERS

9M 2016 NET SALES BREAKDOWNBY CATEGORY

96

25%

47%

28%

NORTH AMERICA

DEVELOPING MARKETS EUROPE

9M 2016 NET SALES BREAKDOWNBY GEOGRAPHY

97

Q3 2016 NET SALES EVOLUTION

98

548.3 559.6

Q3 2015 Net Sales Change on a constant currencybasis

FX translation impact Q3 2016 Net Sales

-9 M€

FX translation impact

-1.7%+3.8%

In million euros

USD: -1 M€BRL: +3 M€ARS : -3 M€MXN: -4 M€ZAR : -1 M€INR : -1 M€RUB & UAH: -1 M€Others: -1 M€

9M 2016 NET SALES EVOLUTION

99

1,682.3 1,692.9

9M 2015 Net Sales Change on a constant currencybasis

FX translation impact 9M 2016 Net Sales

-72 M€

FX translation impact

-4.3%+4.9%

In million euros

USD: -2 M€BRL: -16 M€ARS : -15 M€MXN: -15 M€ZAR : -4 M€INR : -3 M€RUB & UAH: -3 M€Others: -14 M€

GROUP QUARTERLY FIGURES

*See glossary

100

In million euros Q1 13 Q2 13 Q3 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 Q4 14 FY 14 Q1 15 Q2 15 Q3 15 9M 15 Q4 15 FY 15 Q1 16 Q2 16 Q3 16 9M 16

Net Sales 428.6 508.9 470.4 479.9 1,887.8 434.2 534.3 496.8 513.8 1,979.1 510.8 623.1 548.3 1,682.3 559.4 2,241.7 517.3 616.0 559.6 1,692.9

YoY actual changes -3.7% +1.6% -3.8% +3.4% -0.6% +1.3% +5.0% +5.6% +7.1% +4.8% +17.6% +16.6% +10.4% +14.8% +8.9% +13.3% +1.3% -1.1% 2.1% 0.6%

YoY changes on a constant currencies basis* -0.7% +4.1% +3.5% +11.4% +4.6% +6.2% +5.2% +4.1% +5.1% +6.9% +5.6% +6.9% +4.2% +3.8% +4.9%

YoY changes on a comparative basis* 0.0% +4.1% +3.5% +6.7% +3.6% +4.5% +7.6% +2.6% +4.8% +4.9% +6.8% +5.8% +4.8% +5.8% +7.3% +6.2% +6.9% +4.2% +3.8% +4.9%

IFO 65.2 103.2 96.4 74.4 339.2 73.0 123.7 94.7 77.9 369.3 97.6 143.9 104.2 345.7 94.2 439.9 76.4 127.3 104.0 307.7

Normalized IFO* 66.7 103.3 95.8 78.4 344.2 73.0 111.6 94.7 90.6 370.0 101.8 137.4 104.2 343.4 88.6 432.0 76.4 131.6 105.2 313.1

IFO margin 15.2% 20.3% 20.5% 15.5% 18.0% 16.8% 23.1% 19.1% 15.2% 18.7% 19.1% 23.1% 19.0% 20.5% 16.8% 19.6% 14.8% 20.7% 18.6% 18.2%

Normalized IFO margin* 15.6% 20.3% 20.4% 16.3% 18.2% 16.8% 20.9% 19.1% 17.6% 18.7% 19.9% 22.1% 19.0% 20.4% 15.8% 19.3% 14.8% 21.4% 18.8% 18.5%

Income before tax 65.0 104.9 98.9 77.1 345.8 74.5 123.7 96.2 86.1 380.4 110.3 142.9 110.3 363.6 103.1 466.7 73.0 127.3 105.2 305.4

Net Income Group Share 45.2 72.9 68.5 54.9 241.5 50.1 85.6 66.6 59.7 262.1 77.2 99.3 76.3 252.9 72.1 325.1 51.0 89.1 73.6 213.7

EPS Group Share 0.95 1.54 1.45 1.17 5.13 1.07 1.82 1.42 1.27 5.57 1.64 2.10 1.62 5.36 1.53 6.89 1.08 1.89 1.57 4.55

GROUP QUARTERLY FIGURES BY GEOGRAPHY

*See glossary

101


Europe 109.6 154 119.9 110.2 493.8 111.4 153.7 130.2 113.9 509.1 117.6 160.0 131.4 408.9 118.9 527.8 126.4 170.1 131.4 428.0

Net Sales

YoY actual changes -1.7% 7.2% -0.8% +1.6% +1.9% +1.6% -0.2% +8.5% +3.3% +3.1% +5.5% +4.1% +0.9% +3.5% +4.4% +3.7% +7.5% +6.3% +0.1% +4.7%

YoY changes on a comparative basis* +1.5% +7.6% +1.0% +2.5% +3.4% +2.6% +0.7% +8.7% +6.0% +4.3% +7.3% +5.0% +3.5% +5.1% +5.7% +5.3% +9.1% +8.7% +2.6% +6.8%

North America 174.6 212.5 219.9 195.6 802.6 169.4 225.1 220.7 214.9 830.1 220.9 290.5 268.7 780.2 259.9 1,040.1 235.9 290.3 271.1 797.2

Net Sales

YoY actual changes -2.7% -1.1% -2.2% -1.6% -1.9% -3.0% +6.0% +0.4% +9.8% +3.4% +30.4% +29.0% +21.7% +26.8% +21.0% +25.3% +6.8% -0.1% +0.9% +2.2%

YoY changes on a comparative basis* -2.1% +1.1% +3.9% +3.5% +1.8% +1.4% +11.5% +0.9% +1.4% +4.0% +8.1% +4.9% +2.9% +5.0% +6.8% +5.5% +5.1% +2.3% +1.3% +2.8%

Developing markets144.4 142.4 130.7 174 591.3 153.4 155.4 145.9 185.1 639.8 172.3 172.6 148.3 493.2 180.6 673.8 154.9 155.6 157.1 467.7

Net Sales

YoY actual changes -6.3% +0.1% -8.7% +11.0% -0.8% +6.3% +9.2% +11.7% +6.4% +8.2% +12.3% +11.0% +1.6% +8.5% -2.4% +5.3% -10.1% -9.8% +6.0% -5.2%

YoY changes on a comparative basis* +1.5% +5.2% +4.9% +13.7% 6.4% +9.6% +9.1% -0.2% +7.9% +6.8% +5.2% +8.0% +9.0% +7.4% +8.9% +7.8% +7.7% +3.3% +9.2% +6.6%

GROUP CONSUMER

*See glossary

102


Net Sales 375.7 446.8 401.0 396.5 1,619.9 382.6 475.0 426.0 420.0 1,703.6 449.7 551.7 470.0 1,471.5 450.9 1,922.4 453.1 546.6 476.3 1476.0

YoY actual changes -2.4% +3.0% -3.1% +5.7% +0.8% +1.8% +6.3% +6.2% +5.9% +5.2% +17.6% +16.2% +10.3% +14.6% +7.3% +12.8% +0.8% -0.9% +1.3% +0.3%

YoY changes on a constant currencies basis* +0.9% +5.7% +4.5% +14.7% +6.3% +11.7% +12.8% +7.2% +3.9% +9.0% +6.7% +5.6% +5.3% +5.8% +7.4% +6.2% +7.2% +4.7%

+3.2% +5.0%

YoY changes on a comparative basis* +0.9% +5.7% +4.5% +8.9% +5.2% +4.9% +8.6% +2.7% +4.6% +5.3% +7.4% +6.3% +6.2% +6.6% +7.9% +6.9% +7.2% +4.7%

+3.2% +5.0%

IFO 69.4 102.6 92.5 69.3 333.8 76.7 124.7 91.2 67.1 359.7 101.7 144.5 99.8 346.1 80.7 426.7 85.4 125.9 97.3 308.5

Normalized IFO* 69.6 102.0 91.8 69.2 332.6 76.7 112.5 91.2 79.8 360.3 106.0 139.5 99.8 345.3 76.3 421.5 85.4 129.8 98.4 313.6

IFO margin 18.5% 23.0% 23.1% 17.5% 20.6% 20.1% 26.3% 21.4% 16.0% 21.1% 22.6% 26.2% 21.2% 23.5% 17.9% 22.2% 18.8% 23.0% 20.4% 20.9%


STATIONERY

103*See glossary


Net Sales 129.7 188.2 150.5 148 616.4 144 212 169.2 151.7 676.9 157.1 233.2 184.3 574.6 152.4 727.0 156.0 230.7 184.4 571.1

YoY actual changes -6.1% +0.4% -6.6% +12.9% -0.2% +11.0% +12.6% +12.5% +2.5% +9.8% +9.1% +10.0% +8.9% +9.4% +0.5% +7.4% -0.7% -1.1% +0.1% -0.6%

YoY changes on a constant currencies basis* +23.9% +17.9% +12.5% +1.1% +13.8% -0.2% +1.1% +4.0% +1.7% +2.9% +1.9% +7.9% +4.0% +2.4% +4.6%

YoY changes on a comparative basis* -2.3% +2.3% +0.3% +8.6% 2.1% +4.2% +8.0% +0.5% +3.0% +4.2% +1.8% +2.5% +6.1% +3.5% +4.3% +3.6% +7.9% +4.0% +2.4% +4.6%

IFO 13.1 33.3 19.6 13.4 79.4 15.6 40 18.4 9.0 83.0 19.8 40.7 19.2 79.7 4.0 83.7 11.1 38.8 7.2 57.1

Normalized IFO* 13.1 33.2 19.6 12.5 78.3 15.6 36.5 18.4 14.0 84.5 21.3 39.9 19.2 80.4 3.1 83.4 11.1 40.3 7.2 58.6

IFO margin 10.1% 17.7% 13.0% 9.1% 12.9% 10.8% 18.9% 10.8% 5.9% 12.3% 12.6% 17.5% 10.4% 13.9% 2.6% 11.5% 7.1% 16.8% 3.9% 10.0%


LIGHTERS

104*See glossary


Net Sales 137.4 139.6 136.1 144.7 557.8 133.6 145.8 143.6 158.6 581.6 163.5 178.4 158.8 500.7 175.0 675.7 163.6 177.2 167.6 508.5

YoY actual changes +0.5% +3.4% +0.4% +0.6% +1.2% -2.8% +4.4% +5.5% +9.6% +4.3% +22.3% +22.4% +10.6% +18.4% +10.3% +16.2% +0.1% -0.7% +5.6% +1.5%


IFO 46.3 54.1 54.1 52.7 207.2 48.9 67.4 54.4 55.6 226.4 61.0 75.6 63.2 199.8 61.1 260.9 62.1 70.6 68.9 201.6

Normalized IFO* 46.4 53.9 54.1 51.7 206.2 48.9 60.1 54.4 55.9 219.3 61.4 74.2 63.2 198.8 59.0 257.9 62.1 71.7 70.0 203.8

IFO margin 33.7% 38.8% 39.7% 36.4% 37.1% 36.6% 46.3% 37.9% 35.1% 38.9% 37.3% 42.3% 39.8% 39.9% 34.9% 38.6% 38.0% 39.8% 41.1% 39.6%


SHAVERS

105*See glossary


Net Sales 91.4 98.7 98.6 88.9 377.5 88.9 98.1 97.9 95.1 380 112.4 117.8 113.0 343.2 108.8 452.0 117.8 120.1 111.8 349.7

YoY actual changes -1.3% +6.0% -3.8% +4.1% +1.1% -2.7% -0.6% -0.7% +7.0% +0.7% +26.5% +20.0% +15.4% +20.4% +14.5% +18.9% +4.8% +2.0% -1.1% +1.9%


IFO 13.6 16 20.8 14.9 65.3 15.5 18.9 19.2 11.1 64.7 21.4 23.4 19.2 64.0 19.4 83.3 12.6 15.4 22.2 50.2

Normalized IFO* 13.6 15.8 20.8 14.1 64.3 15.5 17.6 19.2 15.4 67.7 23.9 22.5 19.2 65.6 18.0 83.6 12.6 16.6 22.2 51.4

IFO margin 14.9% 16.2% 21.1% 16.8% 17.3% 17.4% 19.3% 19.6% 11.6% 17.0% 19.0% 19.8% 17.0% 18.6% 17.8% 18.4% 10.7% 12.8% 19.8% 14.4%


OTHER CONSUMER PRODUCT

106*See glossary


Net Sales 17.2 20.3 15.9 14.9 68.2 16.1 19.1 15.3 14.6 65.1 16.8 22.3 13.9 53.0 14.6 67.6 15.7 18.6 12.5 46.9

YoY actual changes -2.2% +12.0% +7.2% +0.9% +4.6% -6.0% -5.8% -3.7% -1.9% -4.5% +4.1% +16.8% -8.9% 4.9% +0.2% +3.9% -6.2% -16.6% -10.0% -11.6%

YoY changes on a comparative basis* +22.6% +13.0% +10.8% +3.9% +12.5% -2.6% -3.2% -2.9% -2.2% -2.8% -1.6% +8.5% -10.9% -0.6% -0.1% -0.5% -5.2% -15.3% -9.5% -10.6%

IFO* -3.6 -0.9 -1.8 -11.8 -18.1 -3.2 -1.7 -0.8 -8.6 -14.3 -0.5 4.9 -1.8 2.6 -3.8 -1.2 -0.4 1.1 -1.0 -0.3

Normalized IFO* -3.6 -0.9 -2.6 -9 -16.1 -3.2 -1.7 -0.8 -5.6 -11.3 -0.7 2.9 -1.8 0.4 -3.8 -3.4 -0.4 1.2 -1.0 -0.2

YOURLOGOHERE BIC GRAPHIC

107*See glossary


Net Sales 53 62.1 69.4 83.4 267.9 51.7 59.3 70.8 93.8 275.6 61.1 71.4 78.3 210.8 108.5 319.3 64.1 69.5 83.3 216.9

YoY actual changes -11.9% -7.5% -7.1% -6.4% -8.0% -2.5% -4.4% +1.9% +12.5% +2.9% +18.3% +20.4% +10.7% +16.0% +15.7% +15.9% +5.0% -2.7% +6.3% +2.9%

YoY changes on a comparative basis* -11.2% -6.0% -2.3% -2.3% -5.0% +1.4% +0.1% +1.9% +5.7% +2.5% +2.4% +1.8% -3.4% 0.0% +4.6% +1.6% +4.6% +0.3% +7.2% +4.1%

IFO -4.2 0.6 3.8 5.1 5.4 -3.8 -1 3.6 10.8 9.6 -4.1 -0.6 4.3 -0.4 13.5 13.1 -9.0 1.4 6.7 -0.8

Normalized IFO* -2.9 1.3 4 9.2 11.6 -3.7 -0.9 3.6 10.8 9.7 -4.1 -2.1 4.3 -1.9 12.3 10.4 -9.0 1.8 6.8 -0.4

IFO margin -7.9% 1.0% 5.5% 6.1% 2.0% -7.3% -1.8% 5.0% 11.5% 3.5% -6.7% -0.9% 5.6% -0.2% 12.5% 4.1% -14.0% 2.0% 8.1% -0.4%

Normalized IFO margin* -5.4% 2.0% 5.8% 11.0% 4.3% -7.2% -1.6% 5.0% 11.5% 3.5% -6.7% -3.0% 5.6% -0.9% 11.3% 3.3% -14.0% 2.5% 8.2% -0.2%

MISCELLANEOUS

Capital evolution:As of September 30, 2016, the total number of issued shares of SOCIÉTÉ BIC was 47,971,871 shares, representing:• 69,532,912 voting rights,• 68,368,413 voting rights excluding shares without voting rights.

Total treasury shares at the end of September 2016: 1,164,499.

108

GLOSSARY

On a constant currency basis: • Constant currency figures are calculated by translating the current year figures at prior year

monthly average exchange ratesComparative basis:

• On a constant currency basis and constant perimeterNormalized IFO: • Normalized means excluding non-recurring itemsNormalized IFO margin• Normalized IFO divided by net sales.Free cash flow before acquisitions and disposals:

• Net cash from operating activities - net capital expenditures +/- other investmentsFree cash flow after acquisitions and disposals:

• Net cash from operating activities - net capital expenditures +/- other investments –acquisitions/disposals of equity investments / subsidiaries/business lines.

Net Cash from operating activities: principal revenue-generating activities of the entity and other activities that are not investing or financing activitiesNet cash position: Cash and cash equivalents+ Other current financial assets- Current borrowings- Non-current borrowings

109

DISCLAIMER

This document contains forward-looking statements. Although BIC believesits estimates are based on reasonable assumptions, these statementsare 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 March 23, 2016.

110

Full Year 2016 results 15 February 2017 Meeting – BIC Headquarters

First quarter 2017 results 26 April 2017 Conference Call

2016 AGM 10 May 2017 Meeting – BIC Headquarters

2017 AGENDA

111All dates to be confirmed

Group Presentation �for InvestorsDiapositive numéro 2GROUP 9M 2016 KEY FIGURESGROUP 9M 2016 KEY FIGURES9M 2016�Consumer businessBIC STATIONERY IN 9M 2016BIC LIGHTERS IN 9M 2016SHAVER MARKET EVOLUTIONBIC SHAVERS IN 9M 2016BIC GRAPHIC IN 9M 2016Diapositive numéro 119M 2016: FROM NET SALES TO NORMALIZED IFOKEY COMPONENTS OF Q3 2016 NORMALIZED* INCOME FROM OPERATIONS MARGINKEY COMPONENTS OF 9M 2016 NORMALIZED* INCOME FROM OPERATIONS MARGIN9M 2016 From IFO to Group Net IncomeBALANCE SHEETNET CASH POSITIONDiapositive numéro 182011 – 2015�5 years of robust Operational Performance2016 OUTLOOKSTATIONERY IN 2016LIGHTERS IN 2016SHAVERS IN 2016BIC GRAPHIC IN 20162016 - Increase investments in Brand Support �and Research & DevelopmentAccelerate Development CAPEXCAPEX IN 2016�main projects2016 GROUP OUTLOOK2016 OUTLOOK�… AIMED AT FUELING LONG-TERM STRATEGIC PRIORITIESDiapositive numéro 30HISTORY AT A GLANCEA BALANCED PORTFOLIO OF ACTIVITIESINTERNATIONAL FOOTPRINTCAPITAL OWNERSHIP (31-DEC-2015)STRATEGIC ASSETSKEY STRENGTHSSTRONG INTERNATIONAL BRANDSMANUFACTURING NETWORKBIC IN 2015�OPERATIONAL PERFORMANCEBIC IN 2015�CASH GENERATIONCAPEXUSE OF NET CASH AND SHAREHOLDERS REMUNERATIONUSE OF CASH (1/2)USE OF CASH (2/2)Diapositive numéro 45THE CONSUMER STATIONERY MARKET (1/3)THE CONSUMER STATIONERY MARKET (2/3)THE CONSUMER STATIONERY MARKET (3/3)STATIONERY CONSUMER – BIC STRATEGYSTATIONERY CONSUMER: “QUALITY @ A BIC PRICE”2010- 2015 BIC STATIONERY CONSUMER KEY FIGURESDiapositive numéro 52STATIONERY CONSUMER �BIC POSITIONS IN MAJOR MARKET SEGMENTS*Diapositive numéro 54THE POCKET LIGHTER MARKET�VOLUMES VS. VALUETHE POCKET LIGHTER MARKET�KEY PLAYERS OUTSIDE ASIAOVERVIEW OF MANDATORY SAFETY REGULATION AROUND THE WORLDLONG TERM VIEW OF SAFETY REGULATION IMPACT�ON LIGHTER SALESBIC LIGHTER – STRATEGYBIC LIGHTER�N°1 BRANDED LIGHTER MANUFACTURER2006 – 2015 BIC LIGHTER KEY FIGURESBIC® LIGHTERS SALES EVOLUTION IN THE U.S.BIC® LIGHTER RETAIL PRICE POSITIONNINGBIC® LIGHTER RETAIL PRICE PER FLAMEDiapositive numéro 65THE SHAVER MARKET (1/6)WET SHAVE MARKET – REGIONAL STRUCTURETHE SHAVER MARKET (3/6)THE SHAVER MARKET (4/6)THE SHAVER MARKET (5/6)THE SHAVER MARKET (6/6)SHAVERS - STRATEGY2006 – 2015 BIC SHAVER KEY FIGURESONE-PIECE MARKET SHARES IN EUROPE �(16 countries)ONE-PIECE MARKET SHARES IN USAONE-PIECE MARKET SHARES IN BRAZILBIC MARKET SHARES IN 3 AND MORE BLADES* DISPOSABLE SHAVERS SEGMENTSHAVERS: QUALITY AND INNOVATION �AT A REASONABLE PRICEDiapositive numéro 79ADVERTISING AND PROMOTIONAL PRODUCTS �HISTORY AND DEFINITIONADVERTISING AND PROMOTIONAL PRODUCTS �A LARGE AND GROWING BUSINESSADVERTISING AND PROMOTIONAL PRODUCTS �A STRUCTURED BUT FRAGMENTED INDUSTRYADVERTISING AND PROMOTIONAL PRODUCTS �A STRUCTURED BUT FRAGMENTED INDUSTRYADVERTISING AND PROMOTIONAL PRODUCTS �A STRUCTURED BUT FRAGMENTED INDUSTRYBIC GRAPHICBIC GRAPHIC - HIGHLIGHTS AND KEY FIGURES2009 - 2015 BIC GRAPHIC KEY FIGURESDiapositive numéro 88MEASURE…… TO ECO-DESIGN …… OUR PRODUCTSFRENCH ECOLABEL NF ENVIRONNEMENT �BIC FIRST MANUFACTURER TO BE CERTIFIEDAN EXAMPLE OF ECODESIGN: �THE BIC® EASY SHAVERDiapositive numéro 949M 2016 NET SALES �Main exchange rate evolution vs. euro9M 2016 NET SALES BREAKDOWN�By category9M 2016 NET SALES BREAKDOWN�By geographyQ3 2016 NET SALES EVOLUTION9M 2016 NET SALES EVOLUTIONGROUP QUARTERLY FIGURESGROUP QUARTERLY FIGURES BY GEOGRAPHYGROUP CONSUMERSTATIONERYLIGHTERSSHAVERSOTHER CONSUMER PRODUCTBIC GRAPHICMISCELLANEOUSGLOSSARYDISCLAIMER2017 AGENDA Diapositive numéro 112

group presentation for investors - bic€¦ · group presentation for investors. nine months 2016....

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