Presentation Redon factory visit 24JUNE2014 FINAL · Redon factory visit – 24 June 2014 Redon factoryvisit Presentation. ... Introduction François Bich. Redon factory visit –

Redon factory visit – 24 June 2014

Redon factory visitPresentation


IntroductionFrançois Bich


HISTORY

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1960… Marcel Bich identifies lighter as a potential new categoryCRICKET launches the first non-refillable lighters

1965… FEUDOR follows and launches its own model

1970… Acquisition of Cricket by Gillette

1971… BIC Group acquires FLAMINAIRE, a French company operating in Redon(France), gaining its expertise in gas lighters and safety.Development of J1 model BIC® lighters.

At the end of 1972… BIC® launches mass production of lighters in the Redonfactory.

BIC® lighters get an immediate success and have remained successfulthanks to their flame quality, lighting capacity and shape, which fitsparticularly well in the hand.


THE BIC® LIGHTER

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QUALITY SAFETY / QUALITY EFFICIENCY- Optimum level of quality safety applied to each and everylighter- Offer optimum quality efficiency to consumers

CONSUMER FRIENDLINESS- Maximum comfort in holding the lighter and use

VALUE FOR MONEY- Ratio between the number of lights and the price- Ratio between the number of lights compared to the sizeof the lighter.

1

2

3


2014 MANUFACTURING FOOTPRINT

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France

Spain

Brazil

USA

Redon – BJ75 (1972)J26 / J25 / J23 (Flint)

Tarragona (1973)J26 / J25 (Flint)

J38 / J39 (Electronic)

Milford (1974)J26 (Flint)

Manaus (1974)J6 / J5 (Flint)

� BIC manufactures and sells 6 million lighters every day worldwide*

� BIC has produced more than 30 billion lighters over the last 40 years

China

Operational

in 2015

* on 220 days


1.4billion units

BIC® lighters produced

2013 KEY FIGURES

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6million

BIC® lighters produced and bought every day*

557.8 million euros net

sales in 2013

37.0%Normalized IFO margin in 2013

cc. 48%worldwide market

share**

4factories

* 220 days** Outside Asia

+7.0% on a

comparative basis


BIC® POCKET LIGHTER VOLUME AND VALUE TRENDS

7

Source: BIC

1,098 1,130 1,141 1,087 1,1151,224

1,318 1,361 1,417

2005 2006 2007 2008 2009 2010 2011 2012 2013

Net sales change on a comparative basis

+12.5% +5.6% +3.7% +0.8% +5.3% +11.6% +8.6% +4.3% +7.0%

VOLUME (in billion units)


BIC® lighter categoryFrançois Clément-Grandcourt


The pocket lightermarket


-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

-3.0% -2.9%-2.1%

2013 2017e

TOBACCO SALES AND NUMBER OF SMOKERS TRENDS 2013 / 2017

10

Source: Euromonitor – volumes in mm sticks – cigarettes & Roll Your Own

% CAGR 2013/2017

Billion ofcigarette

sticks

Asia EasternEurope

LatinAmerica

Middle Eastand Africa

WesternEurope

TOBACCO SALESWorldwide expected growth (CAGR): +0.8%

NorthAmerica

NUMBER OF SMOKERS Worldwide expected growth (CAGR): +0.6%

872,608893,577

Source: Euromonitor - in thousand – 80 countries

+1.8%

-1.1%

+1.0%

-0.4%

-1.6%

+1.2%

North America

Eastern Europe

Middle-East and Africa Western Europe

Latin America

Asia

+2.1% +2.5%

-0.5%


USAGES OF A LIGHTER

15%

22%

63%

Others*

Candles

Cigarettes

11

Source: Disposable Pocket Lighters Awareness and Usage Study - January 2014 – USA* Grill, other combustables…

37% of overallusages in volume are dedicated to

other usages than cigarettes


World Excl. Asia

Asia

WORLD LIGHTER MARKET - VOLUMES VS. VALUE

BIC estimates for 2012 – Retail prices

Volumes: 11.8 billion units Value: 3.6 billion euros

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32%

68% 63%

37%3.8 billion units

8.0 billion units

1.3 billion euros

2.3 billion euros


Market shares in units outside Asia Market shares in value outside Asia

Asian manufacturers

BIC

Other brandedlighters

WORLD LIGHTER MARKET - KEY PLAYERS OUTSIDE ASIA

Source : BIC estimates for 2012 – Retail prices

56%cc.

35%

9%

34%

cc.

48%

18%

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Redon factory visit – 24 June 2014 - 14 -

BIC, CRICKET AND CLIPPER: 3 INTERNATIONAL BRANDS

WORLWIDE*cc.48% 12% 6%

BIC Cricket Clipper

LATIN AMERICA

>65% 5% 0%

AFRICA

15% 0% 0%

EUROPE

<30% 14% 7%

ASIA

4% 3% 0%

Source: BIC estimates for 2012 (Market shares in value)* Excluding Asia

NORTH AMERICA

>65% 6% 2%

OTHERS

cc.34%

<27%

<30%

>49%

85%

93%


OVERVIEW OF MANDATORY SAFETY REGULATION AROUND THE WORLD

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1998

ISO : 1989CR : 1995

2000

2003

CR : 1992ISO : 1997

2003

2004

20052011

2006

2007

2010

20062003

1994

1997

Child resistant

ISO 9994 and Child Resistant

ISO 9994

1999


Africa Asia EuropeLatin

America*North

America*

ISO 9994 conform lighters

Low quality lighters

Matches

* real enforcement of the regulation

LONG TERM VIEW OF LIGHTING DEVICES WEIGHT

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BIC® lighters


BIC® LIGHTER KEY FIGURES OVER THE 5 PAST YEARS

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+5,3%

+11,6%+8,6%

+4,3%+7,0%

2009 2010 2011 2012 2013

34,0% 36,2% 38,9% 37,4% 37,0%

2009 2010 2011 2012 2013

AverageNIFO36.7%

Net sales change on a comparative basis

Normalized IFO margin


BIC® LIGHTER MARKET SHARES

Estimated market shares (in value)

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cc. 48%

< 30%

> 65% > 65%

Worldwide(Exlc. Asia)

Europe North America Latin America

Source: BIC estimates


BIC® LIGHTER RETAIL PRICE POSITIONNING

20

Source: BIC (Reference J26 for Europe, USA, Brazil and J3 for China)

1,32 €

$1,58

1,28 €

0,36 €

1,13 €

$0,72

0,98 €

0,42 €

0,73 €

0,12 €

Europe USA Brazil China

BIC Other compliant lighter Non-compliant lighter


BIC® LIGHTER RETAIL PRICE PER FLAME

21

1,0 1,0 1,0 1,0

1,4 1,41,2

1,5

1,8

0,7

Europe USA Brazil China

BIC Other compliant lighter Non-compliant lighter

Based Indice 1

Source: BIC (Reference J26 for Europe, USA, Brazil and J3 for China)


BIC® BRAND AWARENESS

22

Source: Internal brand awarness study conducted on 12,000 consumers in 2011

65%

78%

93% 93%

24%

54%

95%

Worldwide Europe NorthAmerica

LatinAmerica

Asia Middle-Eastand Africa

Oceania


BIC® SLEEVES: A GROWTH CONTRIBUTOR

23

Source: BIC (Off Invoice sales)

Sale of BIC® lighters

Sale of BIC® sleeves

CAGR 2010-13+13.7%

+7.9%

Sleeves represent 20% oflighter category net sales

2010 2011 2012 2013

CAGR 2010-13+7.9%


Disclaimer

This document contains forward-looking statements. Although BICbelieves its expectations are based on reasonable assumptions, thesestatements are subject to numerous risks and uncertainties.A description of the risks borne by BIC appears in section “Risks andOpportunities” of BIC 2013 Registration Document filed with the Frenchfinancial markets authority (AMF) on 26 March 2014.

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Presentation Redon factory visit 24JUNE2014 FINAL · Redon factory visit – 24 June 2014 Redon factoryvisit Presentation. ... Introduction François Bich. Redon factory visit –