AFRICA, MIDDLE EAST AND BEYOND: 3 MARKETS, 3 REALITIES SHOWN TO US BY OUR VERY OWN GUIDES

Transcription

1 N 04 / /2014 THE BIC YEARLY MAGAZINE TRAVELS AFRICA, MIDDLE EAST AND BEYOND: 3 MARKETS, 3 REALITIES SHOWN TO US BY OUR VERY OWN GUIDES INTERVIEW WITH Bruno Bich and Mario Guevara PART STYLUS, PART PEN THE REAL TRUTH ABOUT BIC CRISTAL STYLUS Happy 40 th! BIC CELEBRATES ITS POCKET LIGHTER ANNIVERSARY distribution STRATEGY culture buzz test DIGITAL

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3 EDITORIAL CONQUERING NEW MARKETS For the BIC tween us fourth edition, after we revealed all last year and showed you how products are developed and manufactured, we are now taking you into the field for an up-close look at our new markets. Because once we ve developed a product, how is it distributed? That s quite a question, and you ll find the answer on pages 20 and 21. Since operations are adapted to every geographic zone, start on page 26 and follow our in-house guides to three booming markets, Africa, the Middle East and Asia. But no matter where you go, the one thing you can always count on is that BIC products are a daily part of millions of consumers lives, and the proof of that is in the table on page 24. Discover the new 2-in-1 BIC Cristal Stylus pen on page 36 with a fun little test, and then take a dive into the world of BIC Graphic; there s a lot more to it than you might have thought. On page 46, you ll be wowed by the artistic creations inspired by BIC products throughout Happy reading! The editorial staff 1

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5 CONTENTS 14 BUZZ AROUND HOW TO DRAW THE WORLD 20 A MARKET 26 3 MARKETS SHOWN TO US BY OUR 3 GUIDES for who? From Ghana to Ecuador with a detour through Canada among other places, have a look at nearly 30 events that were highlights in the BIC universe in How do BIC products get from the production lines to the checkout line? The eight steps to follow for a successful product launch and optimal roll-out to retailers and the end customer. Set off with Abderahmane, Mohamed and Eddie to Africa, the Middle East and Asia to discover what s special about these three markets Editorial EXCLUSIVE INTERVIEW With Bruno Bich and Mario Guevara BIC TEAM Board of Directors and operations IT ALL ADDS UP! Yearly figures BUZZ AROUND THE WORLD Yearly events HOW TO DRAW A MARKET Strategy, logistics and distribution BIC ANALYZED The brand s defining characteristics POCKET CHANGE? Three BIC products, four markets TRAVELS Africa, the Middle East and Beyond Markets as seen by our guides WHAT ARE YOU MAKING? BIC factories around the world HOW STYLISH IS YOUR STYLUS? BIC Cristal Stylus revealed WHAT DO YOU LIKE? BIC as seen by its online community happy 40 th! How BIC celebrated its pocket lighter SPLITTING HAIRS Two targets, two shavers at the ready! THE 7 GOLDEN RULES FOR BIC GRAPHIC SUSTAINABLE DEVELOPMENT The BIC barometer bic inspired Artists who draw with BIC pens SHAREHOLDERS INFORMATION LETTERS FROM READERS 3

6 meet... Exclusive interview Excellent quality for a great price, plus ingenuity and creativity: BIC s positioning is still right on target. That claim is backed up by the company s sales, which rose again in 2013 (3.6% on a comparative basis). Analysis of trends with Bruno Bich, Chairman of the Board and Mario Guevara, Chief Executive Officer of BIC. How was the year 2013 overall for BIC? What drove the Group's success? Mario Guevara : 2013 was another good year for BIC. The Consumer Business (stationery, lighters and shavers) outperformed their markets in most countries and their net sales grew by more than 5%. Although Advertising and Promotional Products net sales decreased by 5%, they have been doing better throughout the year in a difficult market. Overall, results were consistent with our expectations for the year. If I had to summarize what was most important about 2013, I would first mention our teams who, above and beyond their everyday commitment, have shown a positive, winning attitude that has been the key to our success. Then I would add our market share gains in all categories and most of our markets. Not to forget our continued investments aimed at building a solid future for the group. Could you name one major event for BIC in 2013? Bruno bich : BIC s acquisition of 55% of Cello Pens, the leading Indian manufacturer of writing instruments. This company is going strong, and, like BIC, it offers high-quality products at the right price and opens up great opportunities for growth in India. This acquisition also provides us a good foothold in Asia and will contribute to the long-term growth of the group. What trends are we seeing in different segments and different markets? Mario Guevara : All our Consumer Business activities grew in 2013, both in mature and developing markets, with particularly strong developing in the Middle East-Africa region that posted growth of nearly 10%. In stationery, we increased or maintained our market shares. In Europe, we had an excellent back to school period in France and Spain. Lighter sales again increased throughout the world and in particular in North America, where we continue to capitalize on our quality/safety/price positioning. Lastly, in shavers we saw growth everywhere, but it was really Latin America that outdid itself, thanks to the market shift upwards to 3- and 4-blade shavers. And we mustn t forget BIC Sport, with sales that grew more than 15% again this year, bruno bich "our ethical values of responsibility, teamwork and ingenuity are timeless. they have always formed the basis for the cohesion and success of our Group, and they always will." thanks in large part to the success of SUP (Stand Up Paddle) boards. What are the main drivers of growth? Mario Guevara : In addition to maintaining irreproachable quality for each of our products and selling them at the right price, we continue to invest daily in new products that correspond to what consumers throughout the world need and desire. Regions experiencing high growth (Eastern Europe, Africa, the Middle East and Asia) will make up the major sources of growth for our group over the next 10 years. We will benefit from our historical presence in Africa and the leading position of Cello Pens in India. *All the changes are expressed on a comparative basis. See glossary page 51. 4

7 Bruno Bich, Chairman of the Board _ Mario GUEVARA, Chief Executive Officer 5

8 meet... What has been most memorable for you in these past ten years of BIC s commitment to Sustainable Development? Bruno bich : From the beginning, BIC products were always designed to offer the longest usage while using as little material as possible. A BIC Cristal ballpoint pen can write for 2 km, a maxi pocket lighter provides 3,000 lights in it and a BIC 3-blade shaver gives at least 10 shaves. Yet we wanted to develop that value even further and so we committed to a complete Sustainable Development program. For example, in ten years we have reduced the weight of the BIC Cristal pen by 10% and reduced energy consumption at our plants by 30%. It is undeniably true that working in-depth on our environmental, social and societal responsibility has allowed us to make progress in many fields and our customers now recognize our products as responsible. Today we are more than ever convinced that our commitment to social and environmental responsibility is a major asset for our long-term development. What are your goals for 2014? Mario Guevara : Based on our performance in 2013, we are confident going into In our Consumer Business, we will benefit from product launches in all categories and from the Cello Pens integration. We will continue of course to invest in our brand, in R&D and in our industrial production capacity around the world. 6

9 meet... mario guevara "2013 was another good year for BIC.Based on our performance in 2013, we are confident going into 2014." What about BIC Advertising and Promotional Products? Mario Guevara : After four challenging years, we are beginning to see results from the efforts we ve made to return this segment to growth. The customer service is again at its regular high standard, meaning that in 2014 we can focus our efforts on regaining customer confidence. With a new brand identity for BIC Graphic, a refocused range of innovative products, targeted marketing and communication operations and a continuing commitment to respecting product standards, we have confidence in the 2014 business outlook. You regularly talk about how important it is to think in the longterm, so let me ask you one last question what might BIC become in the more distant future? Bruno bich : As our philosophy expresses in Honor the Past, Invent the Future, BIC will surely be very similar and yet very different from what it is today. Similar because our ethical values of responsibility, teamwork and ingenuity are timeless. Together with the commitment and expertise of all our employees around the world, they have always formed the basis for the cohesion and success of our group, and they always will. We will also continue to innovate and offer consumers quality products at the best price. Remaining on the cutting edge of excellence, while still maintaining a solid balance sheet has been our constant obsession for the last 60 years and it will be so in the future. Different because of our geographic presence will have evolved. Africa, the entire continent, will surely have made significant economic progress and BIC, present there since the 1960s, will be perfectly positioned to take advantage of that long-standing relationship. With Cello Pens, our presence in India will surely have grown. We are working to make sure that the same will hold true for the rest of Asia, a continent that represents for us the largest geographic challenge in the coming years. Our business portfolio will have evolved in order to keep pace with changes in consumer habits. For example, we are convinced that handwriting, combined with new tools, will remain an essential means of communication. We have already begun to adapt our offer with the launch of BIC Education, an innovative educational solution that combines digital technology and handwriting. In another field, if our research project were to succeed, portable fuel cells could also constitute a lever for growth in the long-term. Our cultural and geographic diversity will continue to grow and we will develop new expertise. The commitment and the know-how of BIC employees will allow us to reach our goals. In this context, the most important challenge will be to manage these changes to build a solid, socially responsible future for our group. Net sales 1 887,8 M normalized income from operations 344,2 M normalized ifo margin 18,2 % 7

10 Corporate GOVERNANCE bic' team BOARD OF DIRECTORS Bruno BICH 4 Marie-Pauline 8 Chairman Chandon-Moët Director 2 Mario Guevara Director and CEO François Bich 3 Director and 6 Executive Vice President 5 John Glen Director (1) Elizabeth BASTONI Director (1) 9 10 Frédéric Rostand Director (1) Pierre Vareille Director (1) Edouard BICH/ Société MBD (2) Director 7 Marie-Henriette Poinsot Director auditors Deloitte & Associés Statutory Auditors Grant Thornton Statutory Auditors BEAS Substitute Auditors Institut de gestion et d expertise comptable Substitute Auditors COMPENSATION AND NOMINATION COMMITTEE Frédéric Rostand Chairman (1) Elizabeth BASTONI (1) Marie-Henriette POINSOT audit COMMittee John GLEN Chairman (1) Edouard BICH Société MBD (2) Pierre vareille (1) (1) Independant. (2) Bich family holding company, represented by Édouard Bich. 8

11 Corporate GOVERNANCE operations Mario GUEVARA Chief Executive Officer François Bich Lighters Ed Dougherty Stationery and Shavers Benoit Marotte Stationery Edgar Hernandez Advertising and promotional products Billy Salha Europe Chris Mills North America Gonzalve Bich Developing markets Marie-Aimée Bich-Dufour Legal Alison JAMES (1) Human Ressources Jim DiPietro Finance officers Shareholders Meeting Award 2013 Mario Guevara Chief Executive Officer François BICH Executive Vice President Marie-Aimée BICH-DUFOUR Executive Vice President Managed by Capitalcom, the General Meeting Prizes have, up until now, only been given TO LISTED COMPANIES on the French CAC 40 exchange, but for the FIRST time in 2013, they recognized a business on the SBF 80 exchange. And it WAS BIC THAT earned the trophy for the MOST exemplary Annual General Meeting of Shareholders among all SBF 80 COMPANIES. This award recognized BIC s AGM for ITS STRONG PEDAGOGY and ITS focus on INNOVATION. (1) As of April 1,

12 figures it all adds up! 46 million products chosen every day (1) worldwide (1) Base 220 days 25M BIC Stationery products 6M BIC Lighters 10M BIC Shavers 5M Advertising and promotional products { customers 67, M points of sale offer BIC products BIC s position in the world MARKET Stationery Lighters Shavers (2) Advertising and promotional products 1 1 Europe, Africa, Latin America in the world for branded pocket lighters Europe North North America, Oceania Europe, North America, Latin America America (2) On the non-refillable shaver market ,898.7 net sales 2013 (3) (in million euros) , % as reported +4.6% at constant currencies (4) +3.6% on a comparative basis (4) CAPITAL EXPENDITURES (3) (in million euros) M M (3) Consolidation of Cello Pens from 4 th quarter 2013 (4) See glossary page 51 10

13 figures net sales 2013 by geography (3) 26% Europe 43% North America 31% Developing markets (Middle East and Africa, Oceania, Latin America, Asia) 33% Stationery 14% Advertising and promotional products 4% Other product net sales 2013 by category (3) 29% Lighters 20% Shavers Transparency Award 2013 Upon the 4 th annual French Listed Companies Transparency Grands Prix, BIC was awarded three prizes out of 120 French companies of the SBF 120: First prize in the Consumer goods and health category, First prize for Mid-Cap Companies, and Grand Prix all categories. Each year, the Grands Prix recognizes listed companies for the accessibility they provide to regulated information and allows issuers to measure their performances and evolution. Awards are issued after the evaluation of the registration document, half-year financial report, notice of the shareholders meeting and the website, according to 105 qualifying criteria that are defined by the agency Labrador and validated by an independent scientific committee. 11

14 figures NORMALIZED INCOME FROM OPERATIONS (1) (in million euros) (2) Group Stationery Lighters Shavers Other products Advertising and promotional products GROUP NET INCOME (in million euros) (2) % as reported FREE CASH FLOW AFTER ACQUISITIONS AND DISPOSALS (1)(2) (in million euros) M M (1) See glossary page 51 (2) Consolidation of Cello Pens from 4 th quarter

15 figures NORMALIZED IFO MARGIN (1) (in percent) (2) Group Stationery Lighters Shavers Advertising and promotional products workforce by geography Europe North America Developing markets (Middle East and Africa, Oceania, Latin America, Asia) 3,724 2, ,256 3,758 2,254 3,219 3, ,373 (3) (3) Excluding workforce of the 7 entities of Cello Pens 13

16 Buzz BUZZ AROUND THE WORLD In 2013, BIC launched new products around the world, founded partnerships and was present in a number of media, television as well as print. From Europe, Asia and America, here s an overview of some of the buzz from this year M NET SALES % OF THE GROUP S SALES +3.4% ON A COMPARATIVE BASIS* europe - FRANCE - LEADING CONSUMER MAGAZINE LOVES BIC PENS Right before back-to-school time, the French magazine 60 Millions de consommateurs organized a marathon test of the leading ballpoint pens on the market. No surprises here: BIC is still the champion across the board! BIC Cristal Grip achieved the best score, writing beyond the 4km mark. All of it Made In France at a reasonable price, two other pluses for the magazine s editors, who found that BIC pens are hands down the best in our test. N 485 September GREECE - A S.U.P.erb year with BIC Sport In 2013, Greeks were introduced to BIC Sport products, distributed by subsidiary BIC Violex. To go with the new product launch, the brand chose to sponsor SUP (Stand Up Paddle) water sport events. The highlight of all the events was BIC s partnership with the 3rd Hellenic SUP CUP, where Eric Terrien, one of the best in the world and an ambassador for BIC Sport, won. The champion s board was then auctioned and all proceeds were donated to the non-profit organization Smile of the Child. - FRANCE - A NEW LIFE FOR BIC PENS In 2013, BIC continued its partnership with TerraCycle, a pioneer in collecting and reusing traditionally non-recycled waste. In the past two years, six million writing instruments have been collected across Europe and are being recycled into benches for example, produced from 100% recycled material of which 40% comes from collected pens. * See glossary page 51 14

17 Buzz - EUROPE - BIC 4 COLOURS STARS IN A QUIRKY TALE A viral advertising campaign to playfully celebrate BIC 4 Colours was launched on Facebook in March The idea behind it was to create a zany, funny story with a specific character to represent the different colors, each with their own special tics and loveable characteristics. There are crazy adventures and laughs aplenty; join 100,000 other fans and follow it on - FRANCE - BIC OFFICIAL SUPPORTER FOR THE 100 th TOUR DE FRANCE BIC, a historic partner of the great race, was part of the publicity caravan for the one hundredth race as an Official Supporter. From June 29 to July 21, 2013, BIC celebrated this special anniversary event in a colorful way. Four cars and a flat-bed truck with full sound system presented BIC products to the 12 million spectators and distributed more than 400,000 free items throughout the route. Every morning before pedaling off, cyclists signed their name with the BIC 4 Colours, the official pen of the Tour de France. And for every stage, an electric vehicle and the BIC mascot were there at the finish line to celebrate with all the excited fans. - EUROPE - HELLO KITTY JOINS THE BIC FAMILY This is a match made in heaven. For back-to-school 2013 the worldfamous kitten Hello Kitty appears on a range of BIC stationery products. A unique collection of writing instruments made for fans of both brands. A love story between every little girl s favorite kitten and the BIC boy. - UNITED KINGDOM - BIC CRISTAL CHALLENGE: ON YOUR MARK! The artist Funny Tummy rose to the challenge at the Affordable Art Fair in London from 24 to 27 October Working live at the BIC stand, he created a work of art using just one BIC Cristal pen, that s three kilometers of ink, in nearly five hours. The event launched the BIC Cristal Challenge, offering a prize of 10 to anyone who returned a BIC Cristal pen completely used up. - UKRAINE - WHAT IF WE MEASURED LIFE IN BIC 3s? Positioning the BIC 3 shaver as a longlasting product: that was the aim of the clever campaign launched in Ukraine. If a BIC 3 shaver lasts up to 30 days*, then football season lasts 10 BIC 3s, a trip to Mars and back would take 26 BIC 3s and you d only have to wait nine BIC 3s to become a dad! A funny, clever homage to this shaver, man s best friend in the morning. *Up to 30 days: based on an average frequency of use 15

18 Buzz 802,6 M NET SALES 2013 NORTH AMERICA - UNITED STATES - BIC LIGHTER CELEBRATES 40th BIRTHDAY BIC Consumer Products USA celebrated BIC Lighter s 40th birthday at the Milford, Connecticut lighter manufacturing facility. As part of a full year promotional campaign, the company hosted an event on March 11, 2013 that highlighted the 11 national winners of the BIC Best of You lighter contest, whose personal lighter sleeve designs were submitted online and selected out of more than 1,000 entries! In addition to the contest winners, employees, local dignitaries and numerous journalists were present to celebrate this important milestone. During the event, March 11, 2013 was declared by the Mayor of Milford as BIC Day and the company was recognized for being a long-time corporate citizen. - UNITED STATES - BIC PROMOTES BACK TO SCHOOL ON THE TV SHOW THE BALANCING ACT In August 2013, BIC was featured on the TV program The Balancing Act. This morning show, which airs on Lifetime Television, is seen by 96 million American households and empowers women in all aspects of their lives. Through participation on the show, BIC presented its top 10 stationery items for back-to-school, including the BIC Tech 2-in-1 Stylus and Pen, BIC Wite-Out brand correction tape and BIC Mark-It permanent markers. 43% OF THE GROUP'S SALES + 1,8% ON A COMPARATIVE BASIS* - UNITED STATES - OUTSIDE MAGAZINE SELECTS THE BIC SPORT WING ACE-TEC BOARD The BIC Sport Wing Ace-Tec board was selected Gear of the Year by Outside Magazine. The magazine s editors praised the board s BIC qualities it s practical, affordable, durable and fun to paddle. - UNITED STATES - BIC RECOGNIZED AS TOP PERFORMING CPG COMPANY BY BCG AND IRI! In April 2013, BIC was recognized as being a top 10 performing midsized U.S. consumer packaged goods (CPG) company in a study that was conducted by two well-respected research firms,the Boston Consulting Group and Information Resources Inc. The study was the result of an analysis of over 400 CPG manufacturers with a minimum of $100M in annual retail sales in the United States, and was based on market share and sales volume growth. * See glossary page 51 16

19 Buzz AROUND THE WORLD - canada - BIC DEBUTS IN THE NBA BIC Flex 4 makes a slam dunk at Toronto Raptor Games. BIC Canada partnered with the only Canadian team in the National Basketball Association, the Toronto Raptors, during the 2012/2013 season by becoming the official shaver of the team. This partnership included in-stadium advertising at Raptor home games, as well as national TV coverage reaching more than eight million Canadian basketball fans. - UNITED STATES - THE OUTLOOK IS SUNNY WITH BIC SOLEIL Make your own sun was the slogan that BIC shavers chose to reach American women with last May through October, through an advertising campaign that communicated the optimism that the BIC Soleil line of shavers embodies. The television ads aired during programs that were most popular with women ages The campaign, which also included fullpage advertisements in magazines and advertising on major websites, had all the right elements to further build and grow awareness and usage of the BIC Soleil range. BIC EDUCATION: A CLASSROOM SOLUTION THAT COMBINES HANDWRITING AND DIGITAL TECHNOLOGY BIC Education is an innovative classroom solution focused on students basic learning skills. Launched in France in April 2013 and in Québec end of 2013, it is now becoming an everyday tool in schools and special education centers acquiring it. Already in its version 2.0, the BIC Connect software maintains its unique handwriting features, but also integrates new pedagogical tools and allows teachers access to an online community, as well as content created by educational publishers. BIC Education demonstrates the BIC Group s commitment to innovation in education. DEVELOPING MARKETS 591,3 M NET SALES % OF THE GROUP S SALES MIDDLE EAST AND AFRICA - SOUTH AFRICA - A MILLION BIC PENS FOR SOUTH AFRICAN SCHOOLCHILDREN During the school year, BIC South Africa distributed 1.2 million ballpoint pens to underprivileged schoolchildren, as part of its 2nd Trust BIC quality to go further campaign. The goal: help these children have access to education. + 6,4% ON A COMPARATIVE BASIS* 17 John Sheaffer SHEAFFER CELEBRATES ITS 100 th ANNIVERSARY AROUND THE WORLD On May 16, 1913, Walter Sheaffer founded his writing instrument business. Today the company operates in 90 countries around the world and Sheaffer celebrated its centenary from Frankfurt to Mumbai and even in Fort Madison, Iowa, where the museum dedicated to the company is located. The highlight of this anniversary was the celebration organized during the stationery trade fair in Frankfurt with John and Russel Sheaffer, the founder s grandson and great grandson. An exhibit detailed 10 decades of the company s history, showing products, special editions and advertising campaigns from the brand s past. Followers everywhere were involved through interviews and reports from the event posted live on Sheaffer s Facebook wall.

20 Buzz oceania - Ghana - BIC brings a cycling tour back to life After the success of the 2011 Cycling Tour of Ghana, BIC again lent its support to the 2013 event. The organizer's aim was to reinvigorate the historic race, give Ghanaian cyclists a place on the international sports scene, develop a talent pool and also to promote a green form of transportation and local tourism. The program for 2013 included nine stages crossing seven regions of Ghana for a total distance of more than 2130 km, 1300 miles. NEW ZEALAND - THANKS TO BIC, A SCHOOL CAN HIRE ITS TEACHER Organized for New Zealand schools back-to-school season, the BIC Pen Points Promotion challenge aimed to make BIC stationery items a dynamic part of school supply lists. Among the six winning schools, which shared a 12,000 NZD prize, Grovetown School decided to use its prize money to hire a third teacher, thereby lowering the number of students per class and creating an environment that is more conducive to learning. - SOUTH AFRICA - A DISCOVERY TOUR FOR DISADvanTAGED CHILDREN As part of BIC s support for the association PECOP (Personal Concept Project for Soweto children), the company sponsored a field trip for disadvantaged children. The goal: raise children s awareness from a very young age about the need to protect the environment through a visit to the Kloofendal Nature Reserve. - DUBAI - BIC MIDDLE EAST FOCUSES ON PROXIMITY A new BIC subsidiary, baptized BME (BIC Middle East) is now working in Dubai, managing operations in the Middle East and in some parts of south Asia. The team communicates directly with local customers and consumers, so they can better understand their needs. Thanks to the adapted marketing plans, BME has posted strong growth in sales for its first year, proof that a strategy of working closely with customers pays off. - AUSTRALIA - BIC SOLEIL SAVVY AND BIC HYBRID 4 ADVANCE NAMED PRODUCTS OF THE YEAR These two shavers now sold with a set of new cartridges have been named the product of the year in Australia in the female and men grooming categories. This is real proof that among all the new shavers being launched in the category, BIC shavers remain the customer favorite. 18

21 Buzz LATIN AMERICA - ECUADOR - BIC DOESN T KNOW THE MEANING OF IMPOSSIBLE! The BIC Ecuador team organized a sporting event in August 2013 for athletes with a disability. Yo sí puedo (Yes I can) was the slogan for this event to honor diversity. To recruit a maximum number of athletes, BIC Ecuador went with multi-channel communication and paired up with prestigious partners such as Paralympic champion Bayron López. In all, 960 participants faced-off in 11 categories, winning medals and kits with BIC products. - CENTRAL AMERICA - BIC & COLGATE GOING ALL OUT TO WIN OVER YOUNG CONSUMERS During mid-2013, BIC and Colgate teamed up to launch a joint promotional campaign called BIC te regala Speed Stick ADN (BIC s gift to you - Speed Stick DNA). For the purchase of a BIC Hybrid Advance, BIC Comfort 3 Action, or BIC Comfort 3 for women shaver, consumers received a free gift of Colgate Speed Stick Deodorant. The operation was carried out in Guatemala and Costa Rica. - MEXICO - BIC EVOLUTION PENCIL CAMPAIGN: IT S BACK The famous canine mascot, now wellknown to Mexicans, was back at work for back-to-school 2013, as part of the second BIC Evolution graphite pencil campaign. - BRAZIL - BIC CRISTAL, A BRAZILIAN LOVE STORY The love story between Brazilians and BIC Cristal ballpoint pens has endured since 1956! That was the subject of the I was there television campaign launched this year by BIC Brazil. Its aim was two-fold remind people how much the BIC Cristal family is part of Brazilians lives as it writes with them through thick and thin, and then just as importantly, strengthen BIC s positioning in the country as a major figure in spreading writing to all members of society. ASIa - japan - BIC BRITELINER : SEAL OF APProvaL AWARDED LIVE ON TV! The BIC Briteliner highlighter tape passed the test with flying colors on the Japanese television show SmaStation, an entertaining series that takes a closer look at new trends. During the show on the hippest new stationery products, the BIC Briteliner highlighter tape was singled out as a favorite by consumers, with nearly seven million TV-viewers watching. - INDIA - BIC increases its ownership in Cello Pens In October 2013, BIC increased its ownership from 40 to 55%. With 28% of the Indian pen market, Cello Pens is the largest manufacturer and distributer of writing instruments in India. Thanks to a large range of high-quality products and a national distribution network, the Cello brand is one of the most well-known on the Indian subcontinent. This acquisition will help speed the group s development in India as well as in other regions of Asia. - SOUTH KOREA - FIND YOUR MAN, YOUR BIC MAN, THAT IS! The most important thing for BIC s last stationery campaign in South Korea visibility! A BIC product seen is a BIC product sold was their motto. The local teams were focusing on all kinds of visibility with a broad range of original presentations. BIC also knows how to talk to students and the company developed a special relationship with them through its Dream campaign, in place since 2011; the latest version of that was an event known as Find your BIC man. 19

22 strategy How to draw A MARKET From Paris to Colombo, from Kinshasa to Buenos Aires, and not forgetting Chicago or Auckland, you can find BIC products everywhere. What's the secret to doing business in so many places successfully? Practical distribution organization that relies on people, providing flexibility and proximity to our clients and consumers. for who? X-RAY VISION OF THE TARGET where? A new distribution mode? A new market in a relatively unknown country? Depending on the target, BIC scouts out the field: purchasing power, specific needs, restrictions, expectations for this category of consumers, etc. BIC INVESTIGATES What share of business do major supermarkets occupy compared to small stores? Markets and supermarkets, modern or traditional distribution, specialized distribution chains? An overview of local distribution players: who s there, and what other brands will be playing the field? LEARNING TO ADAPT While a shaver may be the same everywhere, BIC isn t just going to market it the same way in all markets. What is the most appropriate product for the country? What package size is right individually, pack of 10, or 50? Which type of packaging, blister pack or boxes? It s important to get the answers right, and BIC, thanks to its teams on the ground, has its finger on the pulse. 1.5 or 10? 20

23 strategy STANDARDS Ventilated caps for safety reasons, a requirement to use a local language on the front of the package every country has its own standards. Before any product launch, BIC s lawyers check everything and the products rolled out by the group respect all regulations to the letter. ALONE OR TOGETHER? BIC has two options: use a distributor already in the area or create a group subsidiary in the country. To get a foot in the door where a new market is concerned, relying on a distributor is often the best solution. who to pick? How? I LOVE MY BIC PRODUCT! BIC s style is to promote products at the point of sale and also in direct contact with consumers through sampling, so that they can touch the products, test them out and get a feel for them. In developing markets the group even goes so far as to help some storeowners repaint their stores with BIC colors of course! Punctuality HOW TO DELIVER? BIC finds out everything about the logistics standards in a country so that they can best meet its clients needs. The group selects known carriers who strictly apply all safety rules and make a commitment together with BIC to work towards sustainable development. EVERYBODY OFF Between 500,000 delivery points and 3.2 million distribution points, BIC products travel between 1 and 1000 kilometers, or up to 600 miles. A final key step that brings products to consumers, whether that s in the aisles of their supermarket or the vehicle of their traveling seller. 21

24 CULTURE Simple BIC ANAlyzED BIC cultivates a brand personality that is the envy of many companies. Simple, affordable, creative and still uncompromising for high quality products here s a look at the characteristics that make BIC such a success. Simplifying your life while still offering cool, fun designs that incorporate the best technology has to offer? That has been BIC s formula from the beginning. Going straight to what s most important, never imitated, aiming for the best quality at the lowest price, remaining on the cutting edge: All BIC products share this DNA and it is what has made the brand a universal symbol and the obvious choice for billions of consumers, everyday. INVENTIVE CLOSE TO YOU The performance of your 2013 BIC Cristal ballpoint pen has not stopped improving since its illustrious ancestor of the 1950s! Innovating and reinventing itself, from the very first pens produced, BIC s products have evolved to keep pace with consumer expectations. Being quick on the uptake means the brand is always ready to provide useful and practical innovations, without missing out on passing trends. The proof is on page 36 with the company s newest innovation, the BIC Cristal Stylus, a ballpoint pen and stylus. BIC items are constant companions, more like little friends that brighten up our everyday lives. We lend them out, share them and can t imagine life without them, from New York to Singapore, Paris to Mexico. We know we ll be able to find them everywhere, or almost, in the 3.2 million points of sale, from tiny corner stands to huge supermarkets. High-tech Universal RELIABLE A BIC product is the essence of technology. Offering high-tech items that have been subjected to a battery of quality and safety tests, but without bragging about it allows BIC to make innovation available to everyone just another one of the brand s strengths. Whether you re a Senegalese schoolchild, a Japanese scientist or an English artist, you have undoubtedly used a BIC Cristal ballpoint pen at least once in your life. There s a good chance that it s even your favorite pen of all That s another of the brand s assets that applies to all of its products they re accessible for everyone, everywhere! Has your BIC lighter ever let you down? We bet it hasn t and there s a very good reason for that: it s been through no less than 50 quality tests before it made it to your pocket, guaranteeing you up to 3,000 lights* safely. Like the lighter, all BIC products, from pens to shavers, aim for the highest quality. And that s not about to change 22 *for a BIC Maxi lighter

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26 CONSUMERS POCKET CHANGE? BIC products are a part of daily life for millions of users. To what other products can their value be compared to in different countries? Comparisons of some everyday products in 4 different markets. In the left column, three key BIC products. Alongside them, from Paris to Pretoria, some other must-have daily goods. FRANCE 1 BIC CRISTAL BALLPOINT PEN 2 liquorice Rotella wheels 1 BIC MAXI LIGHTER 2 baguettes 1 BIC 3 / COMFORT 3 SHAVER 1 stamp 1 ice Average suggested retail price by country. Source BIC. 24

27 BRAZIL UNITED STATES SOUTH AFRICA 2 KM OF WRITING - 1 brigadeiro 1 tea bag 1 small bottle of water 3,000 LIGHTS - 2 bus tickets 1 can of baked beans 1 loaf of bread 10 SHAVES - pop 8 sticks of gum 1 chocolate bar 25

28 AFRICA, MIDDLE EAST AND BEYOND: OUR MARKETS AS SEEN BY OUR VERY OWN GUIDES Their names are Abderahmane, Mohamed and Eddie; they live in Dubai and Seoul and all three work for BIC. For BIC tween us, they have agreed to take us on an exciting discovery tour of the markets they know best, their own! What are the similarities in BIC product distribution between these zones? Are major supermarkets shaking up traditional commerce there? What are the consumer trends in regions where people s quality of life is growing strong? Get ready for a trip, because here we go. 26

29 TRAVELS p.28 p.30 p.32 Abderahmane Fall General Manager for North and West Africa Abderahmane joined BIC in 2006 and today he lives and works in Dubai. His view of the region he s responsible for? A constantly changing place, young, colorful, dynamic and with extraordinary potential. When he s not at work? He enjoys soccer and traveling. His favorite product? BIC Cristal ball pen. Mohamed Hassan Area business manager BIC Middle East After 16 years of experience with other leaders in the consumer goods sector, Mohamed made his way to BIC in His view of the region he s responsible for? A challenging place, with fast growth and markets where everything has to be done from the ground up. When he s not at work, this soccer fan also goes horse riding and confesses to having a weakness for video games. His favorite product? The BIC Mini lighter. Eddie Hong General manager North Asia After joining BIC in 2006, Eddie was one of the people responsible for the group s growth in northern Asia, including Korea, Japan and China. His view of the region he s responsible for? It s a goldmine, as he says quite often, so many fabulous opportunities and a bright future of possibilities in these markets. When he s not at work? He enjoys spending time with his family, especially his two children. His favorite product? The BIC Mini lighter and the BIC 4 Colours ball pen. 27

30 TRAVELS MIDWAY BETWEEN TRADITION AND MODERNITY, FROM STREET VENDORS TO SUPERMARKETS, THE AFRICAN MARKET IS EXPERIENCING REAL GROWTH AFRICA: A HISTORICAL MARKET THAT S CHANGING With: Abderahmane Fall, General Manager North and West Africa To know whether they have a counterfeit item or a BIC on their hands, Nigerians have a foolproof trick: if the tip still writes after being used to make the two holes needed to open a can of milk, it s the real deal, a BIC pen. Welcome to Africa. Here, we are shifting the scale and adapting to the local customs and purchasing power. WELL-KNOWN AND HISTORICALLY PRESENT BIC has been in Africa since the 1960s. At the time, the company used a twin-engine plane and a truck painted in BIC colors to crisscross the continent and introduce products as well as advertising films to the most far-flung corners of Africa. Today, you can find BIC products across the continent, from the Mediterranean coast to South Africa. The brand enjoys very good brand recognition, nearly 100%* and many Africans think that BIC is a local brand, that s how much a part of their daily lives the brand has become. A tight bond that owes a lot to the many years that the company has been present and also the fact that it manufactures products on the continent: BIC owns two stationery factories, one in South Africa and a brand new one in Tunisia. In some countries, such as Kenya, BIC has been working with a few distributors for several decades, to assemble products locally, in particular the BIC Cristal ballpoint pen and BIC 1 single-blade shaver. A MARKET THAT REMAINS TRADITIONAL In Africa, distribution in general remains fairly traditional. We work with distributors who deliver our products to wholesalers who then supply small shops. Here, customers tend to buy their pens, lighters, shavers, and even a light, individually from a retailer who could be a shop, a stand, a roadside seller or a salesman going from village to village with a van full of merchandise. The African landscape is changing rapidly; there is a burgeoning middle class and major chains are moving in, some of which were already present in South Africa, where large and medium sized supermarkets are the norm. PROMISING ECONOMIC GROWTH In Africa, the economy is in good health. On the continent, BIC sells at least one product per inhabitant every year; that s 1 billion items! Business saw strong growth in 2013, thanks to the great work of our local teams and our distributors. Africa is currently going through a transition similar to what Latin America experienced roughly 15 years ago, and that bodes well for the future! Even geopolitical troubles have not put a damper on these growing markets. It is true that in Africa, something is happening every day; it s impossible to plan for every eventuality, but having people on the ground locally means we can react effectively and quickly. With teams in eight countries across the continent, either in BIC subsidiaries or with distributors, we are ready and able to better understand consumers and their expectations, country by country. And that makes all the difference! In Africa, distribution through supermarkets represents a growing share of the market and this is true for an increasing number of regions on the continent where small shops still account for a big share of trade. * Source BIC study 28

31 IN AFRICA, DISTRIBUTION IS STILL VERY TRADITIONAL; YOU CAN BUY LIGHTERS, PENS AND SHAVERS ON THE STREET, AT A STOPLIGHT OR IN THE MARKET WHERE THEY RE SOLD BY TRAVELING SELLERS. BIC IS A VERY VISIBLE PRESENCE FOR SMALL SHOP OWNERS. THE GROUP HAS EVEN HELPED REDO STOREFRONTS, USING THE BRANDS COLORS! BIC has been working with distributors for several decades to assemble products locally. AFRICANS KNOW HOW TO SPOT COUNTERFEITS: A REAL BIC PEN STANDS UP TO THE FAMOUS CAN TEST. BECAUSE THE RIGHT TO EDUCATION IS A FUNDAMENTAL RIGHT, BIC SUPPORTS SEVERAL EDUCATION AND LITERACY PROJECTS, ACROSS AFRICA. 29

32 TRAVELS WHILE TRADITIONAL DISTRIBUTION MODELS STILL COVER MOST OF THE MARKET, MAJOR SUPERMARKETS ARE ALREADY PRESENT IN THE MIDDLE EAST, PARTICULARLY IN THE UNITED ARAB EMIRATES AND QATAR. BIC SELLS ITS PRODUCTS IN THE MIDDLE EAST THROUGH 21 CAREFULLY SELECTED DISTRIBUTORS, AND THE LOCAL STORAGE FACILITY MEANS THAT PRODUCTS ARE THERE AND READY WHEN CUSTOMERS NEED THEM. BECAUSE THEY RE BASED IN DUBAI, BIC TEAMS ARE BETTER ABLE TO UNDERSTAND WHAT S IMPORTANT LOCALLY AND WHAT CONSUMERS EXPECTATIONS ARE. 30

33 WITH LOCAL MARKETING PLANS AND A GREATER FIELD PRESENCE THROUGHOUT THE REGION, SALES HAVE INCREASED SIGNIFICANTLY. Middle East: LAND OF CONTRASTS AND GROWTH With Mohamed Hassan, Area business manager BIC Middle East FROM DAMASCUS TO DACCA, NOT FORGETTING DUBAI The Middle East and South Asia area for us includes 20 countries and stretches from the shores of the Mediterranean to Bangladesh, from the Arabian Peninsula to Sri Lanka. BIC has been doing business there since the end of the 1950s with its first distributor in Syria. MULTIPLE DISTRIBUTION MODELS In markets that vary greatly from one to another, there is nonetheless a constant we sell our products through 21 carefully selected distributors. We deliver to our clients more quickly thanks to local storage (managed by our partner Geodis Wilson) with climate controlled installations in a region where outside temperatures can reach 50 C, 122 F, in the summer! Some countries such as Qatar and the Emirates have distribution networks similar to those in Europe, and major retail stores are a growing presence everywhere, even if traditional distribution styles are still the standard. Another cultural difference is at work, too, in a region where human contact still plays a leading role in business transactions. LOCAL CUSTOMS Among the BIC ranges sold here, shaver products are in a separate class. For example for religious reasons at certain times, Muslim men, particularly those on pilgrimage to Mecca, must shave parts of their body. Double-edge blades are still commonly used, but the BIC Body shaver, perfect for this use because of its attached comb, is attracting more and more consumers. CLOSER TO YOU Since 2012, BIC 's business in the region has been managed from Dubai in the United Arab Emirates. This proximity strategy has made it possible for the group to post strong growth in the Middle East. By taking the time to get to know our distributors we were able to increase significantly the number of points of sale, both in major retail stores and in traditional shops. Having a better understanding of the culture and the consumers of the countries where we work has also benefited our campaigns our latest one is centered on a play on the word BIC which, phonetically, means you in Arabic. By being local, we can more effectively highlight our products and BIC quality. Working from Dubai, BIC has rolled out an advertising campaign for all of the Middle East around the idea of Talk BIC, with a play on the double meaning of bic in Arabic, a homophone with you. That explains the play on words behind the BIC Evolution pencil s slogan I m learning with BIC/you. 31

34 TRAVELS CONVENIENCE STORES GAINING GROUND IN ALL COUNTRIES ASIA, STRONG POTENTIAL FOR DEVELOPMENT With : Eddie Hong General manager North Asia Stationery points of sale decked out entirely in BIC colors? In China, this is now common practice. In Shanghai, in the wholesale market, a flagship store flies the brand s colors, proudly displaying our visual codes. And to be even closer to consumers, nearly 150 shops, from Shanghai to Guangzhou, have recently been decorated in BIC colors. EXTREME CULTURAL DIVERSITY BIC distributes its products in 14 countries in Asia, from Myanmar to Japan, all based out of its regional headquarters in Singapore. While the company has been selling in these markets since the 1970s through local distributors, it was not until the 90s that direct operations began there, through agreements with local players or by taking over distributors. To succeed in this region with its extremely varied geography and amazing cultural diversity, the BIC Group has had to prove its adaptability and create a more personalized offer while building its network. TRULY varied DISTRIBUTION CIRCUITS Given the size of the continent, distribution models vary depending on the level of development in the country. While retail mass market dominates the markets in high-income countries such as Japan, Singapore and Hong Kong, traditional commerce, in the form of thousands of small shops, are still the most widely used circuit. However, in recent years a new trend has been growing: convenience stores, with more than 130,000 of these points of sale opened to date, this channel is one of the drivers of BIC 's growth in Asia. In recent years, more than 130,000 convenience stores have opened their doors in Asia. PRODUCTS SPECIALLY DEVELOPED FOR THESE MARKETS Asia is one of the most dynamic regions of the globe, and the company has posted strong growth since For the future, BIC is betting on expanding its distribution there and on selling products specially created for these regions. Building a new lighter plant in China will also be an important step and will allow the company to better serve its local clients and all its consumers in Asia. BIC opened a flagship store in the wholesale market in Shanghai. 32

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36 strategy WHAT ARE YOU MAKING? 85% OF THE GROUP S PRODUCTS ARE MADE BY BIC IN ITS OWN FACTORIES BIC manufacturing sites across the WORld * STATIONERY France, United States, Tunisia, South Africa, Mexico, Brazil, Ecuador, China, India LIGHTERS France, Spain, United States, Brazil SHAVERS France, Greece, Mexico*, Brazil ADVERTISING AND PROMOTIONAL PRODUCTS Spain, United States BIC SPORT France * Packaging center ** 7 Cello Pens production sites in the region of Daman and 1 production site in Haridwar Why BIC products are made by BIC Since the launch of the BIC Cristal ballpoint pen in 1950, BIC has always manufactured the vast majority of its products (today 85%) in its own factories. This choice is supported by the group s philosophy do it yourself in order to be able to guarantee consumers the highest, unchanging quality, for millions of products every day. BIC s industrial tradition is a strong one, and today more than ever it goes hand in hand with the company s drive to remain on the cutting edge for both production equipment and processes. 34

37 strategy Europe * * * * Three continents, three new STeps in 2013 BIC works hard to find a balance between its commitment to keeping industrial know-how in the place where it was developed and manufacturing products close to where they will be distributed. The most recent example of that was the new plant opened in 2013 in Bizerte, Tunisia; with it, BIC will be able to keep pace with growing sales in the Middle East and Africa. Already number 1 for writing instruments on the continent, the group is strengthening its production network within a healthy economic backdrop. The same idea is at work with the expansion of the site in Saltillo, Mexico, which packages and prepares shavers for shipping. Located 300 km, 185 miles, from the border with the USA, it will make it possible to cut delivery times to points of sale in the Americas. The payoff here is better reaction time and improved customer satisfaction. Lastly, one more continent, one more new beginning in October 2013 BIC announced the acquisition of land 130 km, 80 miles, north of Shanghai, where a lighter factory will be built. It will supply the booming Asian lighter market, which represents 69% of the world market by volume. The plant should be operational by the end of

38 TEST HOW STYLISH IS YOUR STYLUS? STYLUS ON ONE SIDE BALLPOINT ON THE OTHER At first glance BIC products may look simple, but they contain a treasure trove of ingenious developments and technology. The latest example is BIC Cristal Stylus, released in Ballpoint pen or stylus? Take this quick test to find out more. Ball point on one side, stylus on the other side: BIC Cristal Stylus offers pin-point navigation and maximum comfort 36

39 TEST 1 Lea wants to make a drawing. With BIC CriSTal Stylus, she can: a) Draw in her notebook b) Draw on Mom s tablet c) Draw on her big sister s smartphone 3 In the middle of her home improvement project, while jotting down her calculations using her tablet and a BIC Cristal Stylus, Stephanie wonders: just how does the stylus work? Answer: A, B and C. That s right, with BIC, everything is possible! Today, we write on screens as much as we do on paper, and that was the idea that led to the creation of the BIC Cristal Stylus, a stylus and ballpoint pen, so practical and modern it works on paper as well as tablets and smartphones with touchscreens. 2 David is preparing a romantic dinner. With the BIC Cristal Stylus, he can: a) Write his shopping list directly on his smartphone and cross the items in the supermarket. b) Write his shopping list on a piece of paper and cross the items in the supermarket c) Make pretty decorations in the chocolate cake he has prepared for dessert Answer: A and B. One side is a classic ballpoint. The other side is a rubber-tipped end with advanced technology. Its dimensions were specifically chosen to make BIC Cristal Stylus usable from many different angles, nearly everywhere, but not on cakes! a) It has batteries b) It runs on solar energy c) It contains conducting elements Answer: C. For the stylus to be able to write on your screen or click on icons, the electrical current in your body has to be conducted to the tip of the pen, that s why the BIC Cristal Stylus pen is equipped with a system that conducts electricity efficiently. 4 Jeanne and Bruno can t agree: how well will the ballpoint pen side of the BIC Cristal Stylus work? a) It won t work as well because there might be less ink in the pen (says Bruno) b) It will work just as well as a regular BIC Cristal ballpoint pen (says Jeanne) Answer: B. Jeanne s right. This pen lasts just as long as the BIC Cristal Medium, in terms of the quality of the writing, sturdiness and provides more than 2km of writing. 37

40 digital what do you like? Just a glance at a few Facebook pages shows how strong the connections between BIC and its customers are, everywhere around the world. Messages, photos, handmade works BIC is always a topic of discussion, even on the web! BIC : la classe du briquet de poche! the classy pocket lighter! Excelente produto corta a barba toda até nas curvas mais chatas da cara. Rapido e eficaz! Excellent product. It shaves all beards up even hard to reach curves of the face. Fast and efficient! Love Bic markers. Such bright colors and love the tips I really want to try these. They might be great for school projects As to many of my drawings, this one is made with a BIC pen. I hope you like it! La bic amore a prima vista!! la uso per disegnare da tanto tempo!! :)) The BIC love at first sight! I use it to draw since a long time!! :)) Number of fans United States BIC mark-it United States BIC razors Europe BIC 356 DESIGN 664 ON FIRE Europe BIC DESIGN ON FIRE Brazil BIC BRASIL Italy la penna BIc France BIC 4 couleurs BIC!!!!! Riding a 12'6" Wing. I see on your site you have a 14'er? when is that coming out? Супер. Я не курю но у меня есть зажигалка от Bic. Только потому что это стильный и очень классный. Спасибо Bic. Great. I don t smoke but I do have a BIC lighter because it s chic and cool. Thank you BIC! 38

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42 EVENTS BIC celebrates its pocket lighter In 2013, the famous BIC lighter celebrated its 40 th anniversary. And we must say, the BIC teams outdid themselves in coming up with imaginative celebrations for the event! Included were celebrations throughout the world to highlight 40 years of innovation, safety and friendship. HAPPY 40 th! > Forty, now that s a reason to celebrate! In June 2013, the BIC pocket lighter set up shop in the very hip Marais neighborhood of Paris, with a pop-up store in BIC colors. Shoppers learned about the history of the lighter and could have their own lighters personalized. At the same time in Tokyo, BIC Japan launched a multi-media campaign with posters in the Shinkansen bullet trains that was widely shared on Facebook. Meanwhile in the United States, local political dignitaries celebrated BIC Lighter's 40th birthday with the "design your BIC lighter" consumer contest winners from across the U.S., by watching the contest's "winning designs" being produced at the Milford lighter manufacturing facility! Further consumer and trade celebrations, occurred throughout the year across the U.S. > Limited edition The brand re-released some of its most famous designs and has also launched limited-edition series like the series of lighters featuring cupcakes. This year the online Design on Fire contest was held for the 2 nd time and internet users from 13 countries in Europe participated. The Swedish winner will see his design printed on one million BIC lighters. 40

43 strategy happenings WORLD > BIC movie about producing BIC lighters and their safety and quality available on bicworld.com SPLITTING HAIRS BIC Miss Soleil / Simply Soleil to get young women ready for bikinis, BIC Flex O3 Control for a first shave: Two major 2013 launches for the BIC range. UNITED STATES > BIC Flicktacular Consumer Promotions and Special Edition Lighter Designs throughout the year +++ Elegant design Pleasant shaving experience moveable blades and a pivoting head A more comfortable shave Lubricating Vitamin E strips Gentlest shave 3 blades For a close and smooth shave SPAIN > Present at the Sonar Music Festival in Barcelona Handle Designed for a higher comfort Quality control More than 30 checks on the production line JAPaN > Poster campaign in the Shinkansen high speed trains FRANCE > Pop-up store in Paris BIC MISS SOLEIL / SIMPLY SOLEIL SHAVER WHO IS IT FOR? Young women looking for elegance that s efficient, too. WHAT DOES IT DO? It combines quality and design at an affordable price. BIC Flex O3 Control shaver WHO IS IT FOR? Young men who are just starting to shave. WHAT DOES IT DO? Provides a quality shave that won't damage their sensitive skin. 41

44 advertising and promotional products THE 7 GOLDEN RULES FOR bic We ve all had a promotional pen or a bag for our favorite brand. Often you ll find BIC behind these projects, BIC Graphic in particular. Let s take a closer look at this market that is quite different and yet at the same time, so very BIC. RULE n 1 "I WILL BUY WITH CONFIDENCE" We stand by the Code! It s simple if you want to be a supplier for BIC Graphic, you have to sign the Group s Code of Conduct. Working conditions, quality, safety: BIC Graphic takes the utmost care when selecting its partners and regularly carries out compliance audits in their factories to make sure that they keep their commitments. RULE n 2 "I WILL ONLY ACCEPT 100% COMPLIANCE" Products that BIC Graphic offers are basically spokespeople for a brand, so we have to do them justice! Not only does the item have to be appropriate to the audience and impactful, it also has to meet all applicable standards. BIC Graphic cuts no corners here either; they systematically apply the highest level of regulations for each region. RULE n 3 "I WILL PROVIDE USEFUL AND CREATIVE PRODUCTS" A product that BIC Graphic offers not only has to be useful and sturdy, but it also has to be well designed, appealing and creative. It also has to provide a printing surface that is big enough to effectively display the client s logo. From there, BIC Graphic technology makes all the difference and a simple lunch box or umbrella makes a lasting impression. 42

45 advertising and promotional products RULE n 4 "I WILL REMAIN IN STEP WITH THE TIMES" There are fashions in promotional items just like in clothing surfing the trends is key! Like a design investigator, the BIC Graphic team scour the hippest stores, internet sites and specialty trade fairs the world over so that the catalog is always right in step with the times. But be careful not to confuse trends with passing fadsproducts that BIC Graphic offers surf the deep waves, the ones that last! Right now, technology and drinkware are booming. RULE n 5 "I WILL STRIVE FOR THE HIGHEST QUALITY SERVICE" Allô, pronto,, Алло, Alô, bom dia? At BIC Graphic, not only do we speak the same language as our clients, we come from the same country. That s essential if we are to be able to offer the right products at the right time, or even better, anticipate what clients want and give them original products that are 100% on target for the local culture. Règle RULE n n 66 "I WILL SCRUPULOUSLY MEET EVERY DEADLINE" 1,500 mugs in your company colors next week? We can do that. Of course, there are more possibilities when you organize things a bit more in advance, but in a pinch, BIC Graphic can still provide what you need. The secret? We do the printing ourselves with products that we have in stock; this allows us to guarantee the quickest reaction time and a finished product of the highest quality. RULE n 7 "I WILL CHERISH MY DISTRIBUTORS" What won t we do for family For many years, BIC Graphic has been able to rely on a broad, solid network of several thousand distributors specializing in promotional items and who themselves have in-depth knowledge of their end clients expectations. In countries with developing markets, BIC Graphic works mostly with distributors of classic BIC products. Download the BIC Graphic catalogs at bicgraphic.com 43

46 Sustainable Development AIM 10/10 The global score is the average of the 10 scores. BIC SUSTAINABLE DEVELOPMENT BAROMETER The BIC Sustainable Development Barometer is a clear and concrete sign of the company s commitment. In three years, from 2011 to 2013, the second edition made possible significant progress on the goals set out. Preserving the environment and socially responsible actions, with ten clear measures to prove it. 8.7/10 result GLOBAL Barometer You can find a complete version of the Barometer on the Internet site, in the 2013 Sustainable Development Report. Products 1 BIC MEaSURes its products' environmental performance 2 BIC offers 3 products with environmental benefits BIC optimizes its products PACKAGING commitment commitment commitment In 2013, 90% of BIC products (1) will have been eco-measured. In 2013, 50% of BIC products (1) will have at least one environmental benefit. In 2013, the average weight of the packaging per product unit (1) will be reduced by 2%. 9/10 9.7/10 0/10 result result result (1) BIC Graphic (Advertising and Promotional Products) excluded (2) (including contract manufacturers) (3) (for BIC Graphic, this only applies in high risk countries) 44

47 Sustainable Development industry 4 BIC DEPLOYS 5 management systems in its FACTORIES BIC improves the environmental performance of its FACTORIES 6 BIC decreases greenhouse gas (ghg) emissions from its TRANSPORT operations commitment In 2013, 100% of BIC factories will have Environmental and Health & Safety management systems. In 2013, 80% of the employees will work in ISO certified factories. commitment In 2013, energy consumption in BIC factories will be reduced by 3%, water consumption will be reduced by 3% and production of non-recycled waste will be reduced by 1%. commitment In 2013, GHG emissions (1) will be reduced by 4% and reduction GHG emissions will be a key criterion for at least 75% of the group's calls for tenders for transport operations. 9.8/10 10/10 10/10 result result result social 7 BIC reduces 8 BIC extends 9 BIC DEVELOPS 10 BIC MAINTAINS workers' accidents the group's code of CONDUCT employee training its commitments TOWARDS its COMMUNITIES commitment commitment commitment commitment In 2013,the Group's accident incidence and severity rates will be reduced by 5%. In 2013, 100% of factories (2) will have signed the BIC Group Code of Conduct, been audited (3) and monitored on regular schedule. In 2013, 80% of employees will have received at least one training. In 2013, contribution toward communities will be more than 0.5% of pre-tax profit. 10/10 9/10 10/10 10/10 result result result result 45

48 culture Whether simply great writing instruments or the raw materials for creativity, BIC pens remain an endless source of inspiration for contemporary artists. Matt Shlian UNITED STATES In his geometric drawings done with BIC ballpoint pens, the artist studies movement in a line, suggests forms and shapes with just a stroke The detailed precision is spectacular and the lettering, too small to be legible, becomes another figure. éric Lambé Belgium A black BIC M10 pen, a blue BIC M10 pen, abstract shapes with complete saturated-color hatching: in Le fils du roi (The King s Son), this graphic novel artist takes us along for a troubling journey. Cécile Bisciglia FRANCE The artist produces larger than life artwork with BIC pens. The size of the pieces is part of their beauty. Because they are nearly monumental, the viewer stands face to face with them, where the technical mastery becomes obvious, almost lessening the subjectivity one might feel when looking at them. 46

49 culture frédéric B. bouabré ivory coast Questions for fashion designer, Agnès B. laura apsit livens Great Britain isabelle kessedjian France In London everything is possible, and that s where this year Livens, a fashion designer, presented a hat made entirely of BIC Cristal pen caps. For any sweet-tooth who also likes drawing, the illustrator created a clever little notebook for the French publisher Dessain et Tolra in partnership with BIC, where the artist teaches how to draw with BIC ballpoint pens using delicious models. For more than 20 years, you have been collecting Frédéric Bruly Bouabré s work. ( ) How did you discover the artist? When I met him, he really made an impression on me. It was in September 1995, at the American Center (Paris), during an exhibition organized by a friend of mine, André Magnin, Worlds Envisioned. When the doors of the elevator opened to let me off, I was greeted by a man sitting on a radiator, swinging his legs, welcoming his guests, so elegant and yet so out of time and place. What do you find so intriguing about him? I remember in particular his vast knowledge, his philosophy about life. He s a wonderful poet, and at the same time like a revelation, he takes you to other worlds in several of his works, he outlines our dead in the clouds How would you define his style, his unique signature in ballpoint pen? He drew using the simplest materials, a postcard, ballpoint pens and a few colored pencils. He would observe and then with just lines he created the shape of things that interest him: his knowledge of people and the world. Eric adjetey anang Ghana BIC for eternity? In any case, a Ghanaian teacher can decide to be buried in a BIC Cristal shaped coffin, a special creation made by the artist. A unique piece, and a symbol of education. 47

50 Shareholders Information Shareholders Information CAPITAL OWNERSHIP AS OF DECEMBER 31, % 43.9 % 1.6 % Public Bich Family including MBD Treasury shares (a) VOTING RIGHTS AS OF DECEMBER 31, 2013 (b) 59.6 % 39.3 % 1.1 % Bich Family including MBD Public Treasury shares (a) (a) Treasury shares temporarily without voting right. (b) On December 31, 2013, the number of voting rights was 68,849,672 (including voting rights for treasury shares). 48

51 Shareholders Information PER SHARE DATA Earnings Group Share per share in euros Dividend per share in euros 1.40 (1) (2) (3) Payout ratio 44% 44% 44% 46% 51% Average number of shares outstanding net of treasury shares (1) For the fiscal year 2009, the Company paid a special dividend of 1.00 euro. (2) For the fiscal year 2011, the Company paid a special dividend of 1.80 euro. (3) At the shareholders meeting on May 14, 2014, the Board of Director will propose an ordinary dividend of 2.56 euros. 48,151,691 48,341,785 47,565,299 47,339,322 47,047,710 BIC SHARE PRICE IN 2013 on Euronext Paris BASE CLOSING on december 31, CAC BIC 80 01/ / / / / / / / / / / /2013 BIC SHARE PRICE SINCE 2004 on Euronext Paris Base 100 closing December 31, BIC CAC 40

52 KEY INDICATORS KEY INDICATORS in million euros Net Sales 1, , , , , , , , , ,887.8 Income From Operations Normalized IFO * Capital expenditures (1) Free cash flow after acquisitions and disposals* in million euros Earnings Group Share per share or EPS Dividend per share 0.90 (2) (2) (3) *See glossary page 51 (1) Shelton real estate acquisition (11 million euros). (2) A special dividend of 1.00 euro per share was paid for the years 2004 and (3) A special dividend of 1.80 euro per share was paid for the year

53 KEY INDICATORS Former Organization New Organization (1) Stationery Net sales in million euros IFO Margin 9.2% 9.2% 11.9% 14.0% 15.0% 12.9% Normalized IFO margin * 11.1% 11.1% 12.1% 14.0% 15.0% 12.7% Lighters Net sales in million euros IFO Margin 32.1% 36.1% 38.9% 37.5% 37.1% Normalized IFO margin * 34.0% 36.2% 38.9% 37.4% 37.0% shavers Net sales in million euros IFO Margin 11.3% 13.6% 18% 17.2% 17.3% Normalized IFO margin * 12.5% 14.2% 18% 17.1% 17.0% Former Organization New Organization (1) other products Net sales in million euros Advertising and PROMOTIONAL PRODUCTS Net sales in million euros IFO Margin 8.3% 7.6% 6.1% 5.6% 2.0% Normalized IFO margin * 10.4% 9.2% 7.8% 7.1% 4.3% GLOSSARY At constant currencies: constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates. 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. Normalized IFO: normalized means excluding restructuring, BIC Graphic integration plan expenses, gain on the disposal of the phone cards distribution business in France (in 2012), impairments and related restructuring regarding Sologear discontinued operation and BIC Graphic San Antonio manufacturing site, retiree medical adjustment in the U.S., gains on disposals and real estate, and Cello Pens inventory fair value adjustment (IFRS 3R). Free cash flow after acquisitions and disposals: net cash from operating activities - net capital expenditures +/- other investments - acquisitions/disposals of equity investments / subsidiaries/business lines. (1) Organization: since 2010 the product categories have been redefined and are now as follows: stationery (consumer), lighters, shavers, other products (consumer) and advertising and promotional products. 51

54 "letters from readers" LETTERS FROM READERS In 2013 BIC tween us received many questions from readers. Here s just a sampling. WE love IT The BIC Sport Techno 293 is the official board for the Youth Olympic Games 2014, to be held in Nanjing China from 16 to 28 August. Athletes will be competing in 28 sports for this second summer yog. I ve heard about a BIC app for tablets. I can t imagine what it is Could you tell me more about it? Thanks Kelly S., London, U.K. Ed. BIC does have an app, called My BIC Notes, a handy thing to have when you haven t got anything to write with. It s free and has different writing styles (ballpoint pen, mechanical pencil, markers and more) so you can take notes, draw or even help organize your life with to-do lists. Just download it from the App Store or Android. What s new for the fifth version of the BIC phone launched in 2013? Patrick B., Lyon, France Ed. The fifth version of the BIC mobile phone has a new design and comes in four new colors (midnight blue, coral, silvery gray and linden green). It s quite the trendy item, because it has all the basic functionalities that today s users demand it s compatible with mp3 player and bluetooth technologies, has a fm radio and camera. And it s still just as easy to use as ever. The BIC phone is ready to use, as soon as you buy it. Available fully charged and with a SIM card. I live outside of Paris and I m looking for a BIC Megalighter, because I just can t do without it now to light my candles. Where can I find one? Carole B., Colombes, France Ed. Dear Carole, we re so glad that you like our multi-purpose BIC Megalighter, the safe choice for lighting all your candles. They re on the shelves at all major supermarkets and you should be able to find them close to home. The colorful icing on the cake is that they now come in fluorescent. SOCIÉTÉ BIC Limited company, capital euros 181,833, Divided into 47,600,289 shares of euros 3.82 Quoted on Eurolist Euronext Paris Isin: FR Mnemonic : BB Continuous quotation registered in Nanterre, France Design and Production. Photo credits: Les Sœurs Chevalme, Sarah Esteje, Tom Haugomat, Kai Jünemann, BIC Group,Eric Adjetey Anang, Jean-Michel Rousset, Luis Nachbin, Fotolia. This report is printed on FSC certified paper. This document is available online at SOCIÉTÉ BIC 14, rue Jeanne d Asnières Clichy Cedex, France / / / / / / / 52

55 new 2014 * My shopping list STATIONERY 1 Cristal Soft 2 BIC Kids Clic learner ball pen 3 BIC Atlantis Exact classic colors 4 BIC Atlantis Exact fun colors 5 Magic Marker 6 4 Colours Mini 7 BIC Kids twist system learner ball pen 8 BIC Kids learner graphite pencil 9 Conté coloring pencils 10 Cristal precisión y suavidad 11 BIC Atlantis Stic 12 Ecolutions Glue Stic 13 BIC Matic Xtra Shine 14 4 Colours Hello Kitty 15 BIC Kids learner mechanical pencil 16 Ecolutions Pure Mini LIGHTERS 1 Miss BIC Pop Art 2 Barcodes 3 Super Bowl XLVIII Champion 4 Megalighter Fluo SHAVERS 1 Soleil Glow 2 BIC 3 Action * Some of the products above have already been launched in certain countries. Please note that a product s distribution is not always global.

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