BIC Group Shaver Presentation

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Marvin Powers
7 years ago
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1 APRIL 2006 BIC Group Shaver Presentation Investor Relations Department: +33 (0)

2 Honor the past 2

3 Invent the future 3

4 History

5 BIC Categories 2005 Full Year Results Net Sales 4% Income From Operations 8% 17% 52% Stationery Lighter Shaver Other 43% 27% 49% 5

6 Organization Structure For Shavers Global Category Management Consumer Strategies Research and New Products Manufacturing Quality Assurance Geographic Management Europe Middle East / Africa / Asia North America / Oceania Latin America (incl. Mexico / CA) 6

Quality Assurance Geographic Management Europe Middle East /

7 Organization Structure For Shavers Global Category Management Consumer Strategies Research and New Products Manufacturing Quality Assurance Geographic Management Sales and Customer Relations Customer / Trade Marketing Customer Supply / Logistics Local Operations 7

Quality Assurance Geographic Management Sales and Customer

8 Presentation Agenda Page The Wet Shave Market 10 BIC Shaver Strategy 32 Strategy Implementation 38 BIC Strategy Results 46 8

9 The Hair Removal Market 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 Removal Salons Shave Preparations Foams, Gels, Creams After Shave Moisturizers, Skin Conditioners 9

Philips Chemical Depilatories Veet Manual Depilatories Wax, Tweezers Electrolysis Laser

10 The Wet Shave Market 10

11 The Wet Shave Market Systems One-piece Double-edge 11

12 The Wet Shave Market 2005 Estimated Global Market Size Billion units Volume Billion euro Value Systems One-Piece Double Edge 0 Systems One-Piece Double Edge 12

13 The Wet Shave Market 2005 Global Market Size Volume Excluding Double Edge Value Systems 31% -0.6% One-piece 37% One-piece 69% Systems 63% +5.8% 10 billion units 7 billion euro (retail) 13

14 The Wet Shave Market 5 Year Market Trend - US + WE Volume Value Billion units 4 Billion euro One-piece Systems

3 2 1 One-piece Systems 3 2 1 0 2000 2001 2002

15 Activity from 2000 GILLETTE 15

16 Activity from 2000 SCHICK / WILKINSON 16

17 Activity from 2000 BIC 17

18 Activity from 2000 % of 2005 Sales from New Products (euro) TOTAL WET SHAVE WESTERN EUROPE USA Gillette Gillette Schick Schick BIC Bic BIC Bic

19 Activity from 2000 % of 2005 Sales from New Products (euro) TOTAL One-piece WESTERN EUROPE USA Gillette Gillette Schick Schick BIC Bic BIC Bic

20 Geographic Characteristics Systems vs One-piece Value Share Western Europe One-piece 27% United States One-piece 32% Brazil Systems 26% Systems 73% Systems 68% One-piece 74% 20

21 Focus on One-Piece Global Share of One-piece VOLUME SHARE VALUE SHARE % Share of One 20Piece 0 0 Gillette Bic BIC Schick Private Label Gillette Bic BIC Schick Private Label 21

22 Key Observations Triple-blades will play an increasingly important role in the future of one-piece Shavers 22

23 Focus on Women Market Segmentation Women vs. Men VOLUME VALUE Women 21% Women 23% Men 79% Men 77% 23

24 Focus on Women Market Segmentation Evolution TOTAL WET SHAVE 2005 Value Share WESTERN EUROPE USA BRAZIL Men Women 0 Men Women 0 Men Women 24

25 Focus on Women Market Segmentation Evolution Women vs. Men One-piece Value Share WESTERN EUROPE USA Women value Share Value Men Value Share Share One-Piece

26 Focus on Women SYSTEMS ONE-PIECE 26

27 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 27

28 Pricing Evolution Total Western Europe + USA 0,98 1,12 1,23 1,37 1,52 1,61 0,31 0,32 0,34 0,36 0,39 0, One-piece Syst 28

29 Pricing Evolution SYSTEM REFILLS USA Retail Prices per cartridge Venus Vibrance Mach 3 Power Intuition Mach 3 Turbo Venus Divine Quattro Venus Mach Sensor XL 257 Blue II 100 Source : IRI (US FDMX w/o Wal Mart, initial coverage rate 55%) BIC exchange rate

30 Pricing Evolution ONE-PIECE Western Europe / US Average Venus Disp 512 Sensor Xtreme 3 Comfort 3 Adv Soleil Comfort Custom Plus Blue II Classic 44 Source : Nielsen (initial coverage rate 77%) and IRI (US FDMX w/o Wal Mart, initial coverage rate 55%) BIC exchange rate

31 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 31

32 BIC Shaver Strategy 32

33 BIC Shaver Strategy Our vision: offer our consumers quality products at reasonable prices in all segments of the One-piece Shaver Category BIC A quality shave at a reasonable price! 33

34 BIC Shaver Strategy Our strategy 1. Invest in R&D to develop new products that meet consumer expectations in a rapidly advancing technological market. The 3 areas of R&D focus are : Blade Edge Shaver Head Geometry Ergonomics and Aesthetic Design 34

35 BIC Shaver Strategy Blade Edge Finding the proper balance of physical properties to deliver closeness, comfort, fluidity and safety Shaver Head Geometry Understanding the impact of inter related variables like angles and spacing using state of the art computer simulation Ergonomics & Aesthetic Design Finding the proper balance of ergonomic features with an aesthetically appealing design 35

36 BIC Shaver Strategy Ergonomics and aesthetic design 36

37 BIC Shaver Strategy Our strategy 1. Invest in R&D to develop new products that meet consumer expectations in a rapidly advancing technological market. 2. Focus on our development effort and marketing activity on the fast growing triple blade segment for both men and women. 3. Leverage our strength in low cost manufacturing to ensure that our triple blade products still offer great value to consumers. 37

38 BIC Strategy Implementation 38

39 BIC Strategy Implementation Focus on triple-blades BIC s original triple blade entry product Launched in Europe / USA in 2003 Strong growth in Year 2, doubling market share in USA Very strong repeat purchase rates consumer satisfaction 39

40 BIC Strategy Implementation Focus on triple-blades Launched in Europe / USA in 2004 Very strong consumer and customer acceptance Challenging for market share leadership in Women s tripleblades Very strong purchase rates consumer satisfaction 40

41 BIC Strategy Implementation Focus on triple-blades Launched in Europe / USA in March 2005 Positive customer acceptance Expand shelf share and build on positive momentum of original BIC Soleil 41

42 BIC Strategy Implementation Focus on triple-blades Launching in the USA in March 2005 Access the large male segment Innovative ergonomic design Still offer value consistent with BIC s vision A great shave for less 42

43 BIC Strategy Implementation Focus on triple-blades Launching in Europe in March 2005 Accelerate consumer trade-up toward triple-blades Bridge the price gap between premium twins and triples 43

44 BIC Strategy Implementation Focus on triple-blades Launching in the US in 2006 to increase trial of the BIC Comfort 3 franchise Add a feature to BIC Comfort 3 : the pivoting head Same price, more value for consumer! 44

45 BIC Strategy Implementation Focus on triple-blades Launching in Europe in 2006 Accelerate consumers tradeup to triple-blades. Bridge the price gap between premium twins and triples 45

46 BIC Strategy Results 46

47 BIC Strategy Results 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 men and women RESULTS 47

48 BIC Strategy Results KEY METRIC Repurchase Rate Measure of consumer satisfaction % of households that repurchase a product after the initial purchase Source : IRI household panel tracking the purchases of 65,000 households in the USA Benchmark vs. Key Competitors 48

49 BIC Strategy Results REPURCHASE RATE 5-Feb % 30% 30 14,8% 15% 0 Gillette Sensor 3 Schick Xtreme 3 Bic Comfort 3 49

50 BIC Strategy Results REPURCHASE RATE 5-Feb % 30% 15 14,8% 15% 0 Gillette Sensor 3 Women Schick Xtreme 3Women Bic Soleil 50

51 BIC Strategy Results 2005 Volume Share by Segment WESTERN EUROPE USA ,7% 27% 50 32,4% 32% 11,3% 11% 12,6% 13% 0 BIC Share of Tw in Blade BIC Share of triple Blade 0 BIC Share of Tw in Blade BIC Share of triple Blade 51

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