SHAREHOLDERS’ LETTER N°41
BIC Group’s Shareholders' Letter of March 2018.
EDITORIAL
Dear shareholders…
2017 was a challenging year, characterized by unprecedented levels of volatility. Our markets are changing rapidly in an increasingly competitive environment. Empowered by new technologies, consumers are more than ever looking for convenience and product customization. As a long-term oriented company, we remain focused on our long-term growth potential while managing short-term headwinds.
Since the beginning, our vision is to offer high-quality products, at the right price, for everyone, everywhere. We have strong values, and our people are the cornerstone of our philosophy “Honor the Past, Invent the Future.”
Starting in May, my son Gonzalve and his teams will be in charge of inventing the BIC of the future.
Indeed, following the Annual General Meeting, the Board intends to nominate him Chief Executive Officer. He will be supported by Pierre Vareille, who will be appointed Chairman of the Board. Pierre is an experienced and respected professional who shares our vision and long-term view. He has a profound understanding of our company.
As for Gonzalve, he embodies the BIC values, our passion for products and our consumers. For the last 15 years, he has proven his commitment in various positions at BIC, demonstrating his strategic vision and operational skills.
I, therefore, pass the baton with optimism, confident in the ability of our teams to manage current challenges, and confident in the future of our company.
Bruno Bich, Chairman and CEO
2017 PERFORMANCE
Full Year 2017
(1) Comparative basis: at constant currencies and constant perimeter. Figures at constant perimeter exclude the impacts of acquisitions and/or disposals that occurred during the current year and/or during the previous year, until their anniversary date.
Full Year 2017 on a comparative basis(1) (in %)
(1) Comparative basis: at constant currencies and constant perimeter. Figures at constant perimeter exclude the impacts of acquisitions and/or disposals that occurred during the current year and/or during the previous year, until their anniversary date.
In % of Net Sales
(2) Normalized: means excluding non-recurring items (for more information, please refer to the 2017 Annual Results press release).
(3) Excluding the special bonus awarded to employees who were not granted shares under BIC performance share plan.
As of December 31, 2017 (% of capital)
(4) Treasury shares temporaly without voting rights
BIC SHARE PRICE VS. SBF 120
from 30 December 2016 to 15 February 2018 on Euronext Paris (in %).
Base 100 as of December 30, 2016 - Financial data as of February 15, 2018
SBF 120
15 February 2018
4185.17
+9.11%
BIC
15 February 2018
€85.20
-34.03%
ISF SHARE PRICE
At December 30, 2017: 91.66 euros
Average of the 30 last 2017 market days: 93.12 euros.
BIC SHARE PRICE VS. SBF 120
from 31 December 2012 to 15 February 2018 on Euronext Paris (in %).
Base 100 as of December 31, 2012 - Financial data as of February 15, 2018
SBF 120
15 February 2018
4185.17
+49.85%
BIC
15 February 2018
€85.20
-5,67%
2018 OUTLOOK
We expect 2018 Group Net Sales to increase between +1 and +3% on a comparative basis, with all categories contributing to the growth. Major factors affecting sales performance could include continued competitive pressures in Shaver, further inventory reductions from retailers, and continued softness in the Brazilian economy.
Gross Profit will be impacted by an increase in raw material costs, higher depreciation, while we will continue to invest in targeted Brand Support and Operating Expenses.
2018 Normalized Income from Operations will also be impacted by sales performance. Based on these factors we expect Normalized Income from Operations margin to be between 17% and 18%.
NEWS
SOCIETE BIC BOARD OF DIRECTORS: VINCENT BEDHOME APPOINTED DIRECTOR, REPRESENTING BIC’s EMPLOYEES
Vincent Bedhome, age 52, joined BIC Group in 1989 and has been a Project Manager in the Stationery category since 2003. He previously held different positions at the BIC’s plant in Boulogne sur Mer, such as Research & Development engineer, industrial project Manager, and production Manager. Vincent has a chemical engineering degree from HEI Lille (France) and a doctorate in spectrochemistry from the Université de Lille (France).
Vincent is a member of the Compensation Committee.
BIC REINFORCES ITS COMMITMENT TO THE ENVIRONMENT BY SIGNING THE FRENCH BUSINESS CLIMATE PLEDGE
On the eve of the One Planet Summit last December and, in the presence of Nicolas Hulot - French Minister of Ecological and Solidarity Transition, Bruno Bich and 88 other French companies’ leaders signed the "French Business Climate Pledge," a shared commitment to fighting againts Climate change.
BIC OPENS NEW WRITING INSTRUMENT FACTORY IN SAMER (FRANCE)
On 23 October 2017, BIC celebrated the opening of its new writing instrument factory in Samer (Nothern France).
The 29,500-square-meter facility houses both production and research and development functions previously located in Boulogne-sur-Mer and Samer. Certified ISO 14001 and 50001, this new facility contributes to BIC’s objective to reduce the environmental impact of its production facilities.
On this occasion, teams from BIC Boulogne and Samer factories manufactured the world’s longest graphite pencil. This BIC® Evolution® pencil is more than one kilometer long: exactly 1,091.99 meters. The length was confirmed by a bailiff and will be published in the Guinness Book of World Records.
THE BIC COLLECTION EXHIBITED AT THE CENTQUATRE-PARIS FROM 14 APRIL TO 13 MAY 2018
BIC® unveils its contemporary art collection for the first time through an unprecedented exhibition. More than 150 works, inspired by BIC® and made by artists from all over the world, will be exhibited at the CENTQUATRE- exhibition center in PARIS
This collection, which started in the late 1990s at an exhibition in Italy devoted to the life story of Marcel Bich; today consists of more than 250 works by internationally recognized or up-and-coming artists. The works of art have all been created with or inspired by BIC® products.
“DESIGN MY BIC” LIGHTER PERSONALIZATION IN THE U.S.
On 01 December 2017, BIC launched a platform on its ShopBIC.com website called “Design My BIC,” which allows U.S.-based consumers to purchase personalized, full-sized BIC® lighters with their favorite personal image and message.
The process for consumers is easy and intuitive – they just choose their lighter’s color, add text to and/or upload an image that they would like to feature on the lighter.
BIC LAUNCHES ITS FIRST DIRECT TO CONSUMER E- COMMERCE WEBSITE IN EUROPE FOR 4 COLOURS™ LIMITED EDITION PENS
For the third consecutive year, My BIC Pen Facebook Page launched the “Pick Your BIC” competition, allowing fans to vote on the most popular BIC® 4 Colours™ design. More than 35,600 fans from France, Italy, Spain, Belgium and the Netherlands voted from 12 September to 16 October 2017. The “Graphic Bird” design emerged as the favorite out of 18 featured designs, and will be available in stores in April 2018.
Based on the feedback from numerous fans whose favorite 4-Colours™ design was not selected as the winner, BIC® launched an online store: www.pickyourbic.com. All 18 designs from the “Pick Your BIC” competition were available in limited quantities - only 1,000 units per design - exclusively online from 16 to 31 October 2017.
SOUTH AFRICAN YOUTH SAY BIC IS “COOL”
BIC recently stood out in two surveys tracking the affinities of South African Youth: the 2017 Sunday Times Generation Next youth survey, rated BIC as the “coolest stationery brand,” and the 2017-2018 Ask Africa survey, selected BIC as the “Youth Brand” in the shaver category.
BIC SOUTH AFRICA LAUNCHES DIGITAL TALENT SEARCH CAMPAIGN TO FIND THE BIC PEN ART MASTER
The BIC® pen has become more than just a writing tool. In fact, South African artists are using BIC ball pens to create amazing drawings regularly. BIC seized this opportunity to develop a digital campaign inspired by all the works of art received over the years.
This campaign also engaged Facebook and Twitter users to showcase their talents using BIC pens. At the end of 2017, submissions were showcased on a dedicated website. 20 finalists were selected by the BIC Judging Panel, and then the public voted for their favorite work amongst those 20.
MORE INFORMATION
STUDENT JISOO YOO WON THE SECOND EDITION OF THE BIC® PRIZE FOR ENSAPC
Student Jisoo Yoo won the second edition of the BIC® Prize for ENSAPC with her work "Métamorphose" (107 x 52 cm, 2017), a drawing made with three BIC® pens: BIC® Intensity® Fine, Roller Glide Pro 0.5mm and BIC® Cristal® original. Jisoo Yoo is a Korean artist, born in Seoul in 1990, and currently living and working in Paris (France).
Mickey Pujolar Leray and Benjamin Zaragoza respectively won the second and third place prizes. The winners’ works will be presented at the BIC Collection Exhibition, taking place in le 104, Paris (France), from 14 April to 13 May 2018.
BIC LAUNCHES NEW BIC® FLEX 5 CAMPAIGN IN THE MIDDLE EAST AND AFRICA
An innovative campaign to support the launch of the BIC® Flex 5 shaver, in the Middle East and Africa.
The TV advertisement shows the key features and benefits of the BIC® Flex 5. In-store implementations, a press release, and print or digital ads have complemented the communication, with the key message: “With BIC® Flex 5, you will be equipped with the ultimate tool for a great shave, equipped to be your own barber! With BIC® Flex 5, meet the barber in you.”
South Africa was the first country to air the campaign at the end of 2017, followed by Morocco early in 2018.
TAKE A LOOK AT THE VIDEO
NEW CAMPAIGN “ALWAYS READY” WITH BIC® SOLEIL® IN OCEANIA
BIC in Oceania launched a clear and compelling message - #AlwaysReady: when you shave with BIC® Soleil® you’re always ready to seize the moment — wherever life takes you.
A simple visual that inspires with spontaneous, social, fun occasions directed at the modern millennial women was created. The benefit of this creative is that the lead image can be changed depending on the placement and time of year.
2018 NEW PRODUCTS
- Wide, round, and unique design barrel in a sunny color.
- Medium 1.0mm point gives average line width of 0.32mm.
- Retractable ball pen
- Choice of four fashion colors in an all-in-one pen: new flashy orange and yellow colors and pink and purple.
Available in Europe
- Mini size
- Pre-adjusted flame
- Available in eight different designs
- Built with proven BIC quality
- Child-resistant safety guard Conform ISO 9994
Available in Europe
- 2-in-1: A shaver with five moveable blades for closeness and a smooth silky shave,
- Two moisture bars with Shea Butter for added glide; no shave cream needed,
- Handle shape allows a comfortable hold in hand, with two soft grip areas for better control even with wet hands in the shower.
Available in the United States
COMPANY’S DETAILS
• Limited company Capital: 178,072,592.84 euros
• Divided into 46,615,862 shares of common stock, par value 3.82 euros
LISTED ON: EURONEXT PARIS
ISIN : FR0000120966
Mnemonic: BB
Continuous quotation 552.008.443 registered in Nanterre, France
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