A leader in all our markets
We design and manufacture products in three different categories: stationery, lighters and shavers. Thanks to our unique expertise and a carefully controlled production process, we have positioned ourselves as an international leader in all three markets. A family business listed on the Paris stock exchange, with net sales of €2,020.3 million in 2017 (before IFRS 15 restatement), BIC has a presence in almost all regions across the world.
MARKETS AND ACTIVITIES
39% of total net sales
Since the launch of the BIC® Cristal® pen in 1950, BIC has continuously diversified its product range.
Our product portfolio now covers six segments: pens, markers, correction products, coloring pens and pencils, and mechanical pencils. It encompasses over 15 sub-segments (ball pens, roller pens, fountain pens, etc.).
- Ranking: N°2 worldwide
35% of total net sales
Since 1973, BIC® has capitalized on the safety and superior quality of its lighters.
BIC® lighters comply with stringent safety, quality and performance requirements.
- Ranking: N° 1 worldwide for branded pocket lighters
22% of total net sales
In 1975, BIC revolutionized wet shaving when it launched the first one-piece shaver.
BIC covers the one-piece and double-edge shaver segments.
Over the past few years, BIC has concentrated its efforts on developing new products, on selling and on marketing for the three-blade one-piece shaver segment.
- Ranking: N°2 worldwide for one-piece shavers
KEY FIGURES 2017
• 12 billion BIC® products sold;
• 32 million BIC® products bought every day worldwide;
• 4 million points of sale;
• 50% of BIC® products offer one or more environmental benefits.
• 1.8% of net sales spent on R&D, with a team of 283 employees;
• 90% of BIC® products manufactured in our own factories;
• 72% of BIC factories are in developed countries (within the meaning of the HDI (Human Development Index) of countries)
(before IFRS 15 restatement)
• 2,020.3 million euros in net sales;
• 288.3 million euros in net income Group share.
Economic model: simple, responsible, sustainable and value-creating
We rely on solid and diversified capital, allowing us to create value and share it with our shareholders, our stakeholders and for the society as a whole.
Turning risks into opportunities
Over the past sixty years, the world in which BIC operates has undergone considerable change. The globalization of trade, worldwide demographic growth, the scarcity of raw materials and access to education are just some of the major changes that have occurred in our ecosystem. Understanding these evolutionary changes is essential in terms of our strategy, to ensure that we best meet the expectations of our stakeholders. By diversifying our activities and our geographical presence, we expose ourselves to risks that could affect our reputation and performance. It is for this reason that we apply an active and dynamic approach to risk management, anticipating and managing risks and turning them into opportunities.
SOCIAL & HUMAN CAPITAL
BIC employees are united through fundamental values, symbols of the Group's shared culture and guardians of their commitment.
Risks related to experienced employees and skills
The loss of experienced employees could slow down the implementation of Group development plans and jeopardize the implementation of its strategy.
Employee development constitutes a key issue for the Group insofar as it facilitates the achievement of BIC's economic targets, helps to guarantee the internal and external employability of each individual and promotes team commitment to BIC values.
- BIC RESPONSES
The Group takes care to ensure the development of its employees and to boost their levels of skill and expertise. BIC has introduced training programs, individual employee development plans and internal succession plans in order to ensure the continuity of the Group's business.
BIC also takes time to identify and support its future managers.
INDUSTRIAL AND COMMERCIAL CAPITAL
In-house production is one of the cornerstones of the universal quality of BIC® products made in the 24 Group factories established on five continents. BIC therefore benefits from unique industrial expertise and remains constantly in control of its manufacturing costs.
The BIC Group has a strong, comprehensive international distribution network, notably tailored to developing markets.
Strategic and operational risks
The Group is predominantly subjected to risks related to competition and, in particular, to the intense concentration of the modern mass market, but also to risks related to concentration in developed markets.
Given its dependence on its production factories, BIC could be exposed to events that could disrupt or interrupt a site's activity.
The Group is furthermore subject to risks related to increasingly stringent anti-smoking measures. BIC is also exposed to risks related to IT and technology, such as cyber attacks.
Risks related to the storage and use of hazardous, flammable and non-flammable products and substances could have an impact on the health and safety of employees.
Ability to respond to the requirements of new markets
Global population growth is causing an explosion of the middle classes, thus expanding the consumption of goods and services. By controlling its production process, the quality of its products, their cost and its global distribution network, BIC can reach a wide audience and continue to offer solutions to meet the requirements of new audiences.
- BIC RESPONSES
To reduce its exposure to market concentration and the streamlining of the competition, BIC closely monitors distributors’ sales and orders and focuses on differentiating its products from those of its competitors by offering high-quality products at a fair price. The BIC® product ranges, whether traditional or more sophisticated, are designed to meet all expectations and appeal to all consumers.
Lastly, in order to limit the risks associated with its production sites, the Group has adopted a proactive approach to industrial risk prevention.
Constant attention is paid to the implementation and monitoring of preventive measures and safety systems for gas and solvent storage areas. The workforce is trained to recognize potential hazards, as well as to take preventive and corrective action.
INTELLECTUAL, BRAND AND IMAGE CAPITAL
The strength of the BIC brands is the Group's main driver for growth.
The Group relies on significant R&D investment and a team dedicated to improving product quality and performance, to developing new technologies and launching new, value-added offerings.
Risks related to reputation and brand
The BIC® brand could be associated with disposable products, leading to consumer disaffection for such products.
Designing innovative products
Risks that could have an impact on BIC's intellectual, brand and image capital are reason enough for the Group to continually strive to improve its product range and to offer innovative and differentiating solutions.
- BIC RESPONSES
BIC invests in brand support to enhance its visibility and reputation for the launch of new products, notably through communication programs. A significant portion of net sales is invested in research and development. The research, development and innovation functions are organized by category, each managing their own factories and their own research, development and marketing teams.
For the design of its products, BIC keeps supplies of raw materials (plastics, inks, packaging, metals, etc.), consumes resources (water, energy) and produces waste.
Risks related to the Environment and Climate Change
The implications of new regulations on carbon and energy could have a direct impact on BIC's operations and/or those of its suppliers and sub-contractors. The Group is also exposed to the risk of disruption or interruption to the activity of its production sites as a result of extreme climatic events or the unavailability of natural resources. Lastly, new regulations and standards on the communication and measurement of the environmental impacts of products, as well as changes in consumer behavior, could have an impact on Group sales.
Designing responsible products
To minimize its environmental impact and its contribution to climate change, BIC works to develop innovative, responsible and material-saving products.
- BIC RESPONSES
Through its Sustainable Development Program and its HSE (Health, Safety and Environmental) Policy, BIC strives to improve its energy efficiency and to promote renewable energies, so as to reduce its greenhouse gas emissions and its energy consumption. In total between 2006 and 2017, the Group reduced its direct and indirect CO2 emissions by 11% per ton of production.
The Group applies an eco-design approach that seeks to limit its use of non-renewable raw materials, to encourage material-saving and, where appropriate, to promote the use of alternative materials and the development of refillable products.
BIC has shareholders’ equity and strong cash generation. The Group stands out for its prudent resource management which enables it to maintain a solid balance sheet.
BIC is exposed to economic market changes. The Group’s main currency exposure is the euro-U.S. dollar rate.
Ability to finance the Group's development
Strong cash generation and the clear use thereof enables the Group financial autonomy and allows it to successfully implement its development and/or external growth stratégies.
- BIC RESPONSES
The BIC Group manages its shareholders’ equity so as to maintain a positive and available cash position, enabling it to make targeted investments, perform strategic bolt-on acquisitions and ensure shareholder return.
In order to fully achieve its strategic objectives and ensure its long-term performance while respecting its values, BIC has adopted a proactive risk management procedure that aims to identify, analyze, manage and monitor its main risks.