APRIL 2006 BIC Group Shaver Presentation Investor Relations Department: +33 (0)1 45 19 52 26 carole.imbert@bicworld.com sandra.cadiou@bicworld.com www.bicworld.com 1
Honor the past 2
Invent the future 3
History 1975 1994 1999 2000 2003 2004 2005 2006 4
BIC Categories 2005 Full Year Results Net Sales 4% Income From Operations 8% 17% 52% Stationery Lighter Shaver Other 43% 27% 49% 5
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
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
Presentation Agenda Page The Wet Shave Market 10 BIC Shaver Strategy 32 Strategy Implementation 38 BIC Strategy Results 46 8
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
The Wet Shave Market 10
The Wet Shave Market Systems One-piece Double-edge 11
The Wet Shave Market 2005 Estimated Global Market Size Billion units Volume Billion euro Value 16 6 12 4 8 2 4 0 Systems One-Piece Double Edge 0 Systems One-Piece Double Edge 12
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
The Wet Shave Market 5 Year Market Trend - US + WE Volume Value Billion units 4 Billion euro 4 3 2 1 One-piece Systems 3 2 1 0 2000 2001 2002 2003 2004 2005 0 2000 2001 2002 2003 2004 2005 14
Activity from 2000 GILLETTE 15
Activity from 2000 SCHICK / WILKINSON 16
Activity from 2000 BIC 17
Activity from 2000 % of 2005 Sales from New Products (euro) TOTAL WET SHAVE WESTERN EUROPE USA Gillette Gillette Schick Schick BIC Bic BIC Bic 0 50 100 0 50 100 18
Activity from 2000 % of 2005 Sales from New Products (euro) TOTAL One-piece WESTERN EUROPE USA Gillette Gillette Schick Schick BIC Bic BIC Bic 0 50 100 0 50 100 19
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
Focus on One-Piece Global Share of One-piece VOLUME SHARE VALUE SHARE 60 60 40 20 40 % Share of One 20Piece 0 0 Gillette Bic BIC Schick Private Label Gillette Bic BIC Schick Private Label 21
Key Observations Triple-blades will play an increasingly important role in the future of one-piece Shavers 22
Focus on Women Market Segmentation Women vs. Men VOLUME VALUE Women 21% Women 23% Men 79% Men 77% 23
Focus on Women Market Segmentation Evolution TOTAL WET SHAVE 2005 Value Share WESTERN EUROPE USA BRAZIL 100 100 100 50 50 50 0 Men Women 0 Men Women 0 Men Women 24
Focus on Women Market Segmentation Evolution Women vs. Men One-piece Value Share WESTERN EUROPE USA 90 90 60 60 30 30 Women value Share Value Men Value Share Share One-Piece 90 60 30 0 0 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 0 2000 2001 2002 2003 2004 2005 25
Focus on Women SYSTEMS ONE-PIECE 26
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
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 0,41 2000 2001 2002 2003 2004 2005 One-piece Syst 28
Pricing Evolution SYSTEM REFILLS USA Retail Prices per cartridge Venus Vibrance Mach 3 Power Intuition 431 458 458 Mach 3 Turbo Venus Divine Quattro Venus Mach 3 386 383 354 345 336 Sensor XL 257 Blue II 100 Source : IRI (US FDMX w/o Wal Mart, initial coverage rate 55%) BIC exchange rate 2004 29
Pricing Evolution ONE-PIECE Western Europe / US Average Venus Disp 512 Sensor 3 324 Xtreme 3 Comfort 3 Adv Soleil 244 244 276 Comfort 3 188 Custom Plus Blue II 100 127 Classic 44 Source : Nielsen (initial coverage rate 77%) and IRI (US FDMX w/o Wal Mart, initial coverage rate 55%) BIC exchange rate 2004 30
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
BIC Shaver Strategy 32
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
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
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
BIC Shaver Strategy Ergonomics and aesthetic design 36
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
BIC Strategy Implementation 38
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
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
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
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
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
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
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
BIC Strategy Results 46
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
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
BIC Strategy Results REPURCHASE RATE 5-Feb-05 60 43% 30% 30 14,8% 15% 0 Gillette Sensor 3 Schick Xtreme 3 Bic Comfort 3 49
BIC Strategy Results REPURCHASE RATE 5-Feb-05 30 43% 30% 15 14,8% 15% 0 Gillette Sensor 3 Women Schick Xtreme 3Women Bic Soleil 50
BIC Strategy Results 2005 Volume Share by Segment WESTERN EUROPE USA 100 100 50 26,7% 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