BIC Group Shaver Presentation

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BIC Group

Shaver Presentation

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History…

1994

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BIC Categories

2005 Full Year Results

27% 17% 4% 52% Stationery Lighter Shaver Other

Net Sales Income From Operations

43%

49%

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Organization Structure For Shavers

Consumer Strategies

Research and New Products Manufacturing

Quality Assurance

Europe

Middle East / Africa / Asia North America / Oceania

Latin America (incl. Mexico / CA)

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Organization Structure For Shavers

Consumer Strategies

Research and New Products Manufacturing

Quality Assurance

Sales and Customer Relations Customer / Trade Marketing Customer Supply / Logistics Local Operations

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Presentation Agenda

Page

The Wet Shave Market

10 BIC Shaver Strategy

32 Strategy Implementation

38 BIC Strategy Results

46

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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

Shave Preparations… Foams, Gels, Creams After Shave… Moisturizers, Skin Conditioners

The Hair Removal Market

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The Wet Shave Market

Systems

One-piece

Double-edge

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2005 Estimated Global Market Size 0 4 8 12 16

Systems One-Piece Double Edge

Billion units Volume Billion euro Value

0 2 4 6

Systems One-Piece Double Edge

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7 billion euro (retail) One-piece 37% Systems 63% Value

-0.6%

+5.8%

Excluding Double Edge

10 billion units Systems 31% One-piece 69% Volume

The Wet Shave Market

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The Wet Shave Market

5 Year Market Trend - US + WE

Volume

Billion units Billion euro

Value 0 1 2 3 4 2000 2001 2002 2003 2004 2005 0 1 2 3 4 2000 2001 2002 2003 2004 2005 One-piece Systems

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Activity from 2000…

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Activity from 2000…

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Activity from 2000…

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Activity from 2000…

% of 2005 Sales from New Products (euro)

TOTAL WET SHAVE

USA 0 50 100 Bic Schick Gillette 0 50 100 Bic Schick Gillette WESTERN EUROPE BIC BIC

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Activity from 2000…

% of 2005 Sales from New Products (euro)

TOTAL One-piece

WESTERN EUROPE USA

0 50 100 Bic Schick Gillette 0 50 100 Bic Schick Gillette BIC BIC

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Geographic Characteristics

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

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Focus on One-Piece

“Global” Share of One-piece

% Share

of One Piece

VOLUME SHARE VALUE SHARE

0 20 40 60

Gillette Bic Schick Private Label

0 20 40 60

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Key Observations

Triple-blades will play an increasingly important role

in the future of one-piece Shavers

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Focus on Women

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

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Focus on Women

Market Segmentation Evolution

TOTAL WET SHAVE 2005 Value Share 0 50 100 Men Women BRAZIL 0 50 100 Men Women WESTERN EUROPE 0 50 100 Men Women USA

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0 30 60 90 2000 2001 2002 2003 2004 2005

Focus on Women

Market Segmentation Evolution

Women vs. Men One-piece Value Share

USA Value Share One-Piece 0 30 60 90 2000 2001 2002 2003 2004 2005 WESTERN EUROPE 0 30 60 90 2000 2001 2002 2003 2004 2005 Women value Share Men Value Share

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Focus on Women

SYSTEMS

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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

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Pricing Evolution

Total Western Europe + USA

0,31 0,32 0,34 0,36 0,39 0,41 1,61 1,52 1,37 1,23 1,12 0,98 2000 2001 2002 2003 2004 2005 One-piece Syst

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100 257 345 354 383 386 431 458 458 336 Blue II Sensor XL Mach 3 Venus Quattro Venus Divine Mach 3 Turbo Intuition Mach 3 Power Venus Vibrance

Pricing Evolution

SYSTEM REFILLS

USA Retail Prices per cartridge

Source : IRI (US FDMX w/o Wal Mart, initial coverage rate 55%) –

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Pricing Evolution

44 100 127 188 244 244 276 324 512 Classic Blue II Custom Plus Comfort 3 Soleil Comfort 3 Adv Xtreme 3 Sensor 3 Venus Disp ONE-PIECE

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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

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BIC Shaver Strategy

Our vision:

offer our consumers quality products at reasonable

prices in all segments of the One-piece Shaver Category

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BIC Shaver 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

Our strategy

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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

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BIC Shaver Strategy

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BIC Shaver 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.

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BIC Strategy Implementation

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 Focus on triple-blades

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BIC Strategy Implementation

Launched in Europe / USA in 2004

Very strong consumer and customer acceptance

Challenging for market share leadership in Women’s triple-blades

Very strong purchase rates… consumer satisfaction

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BIC Strategy Implementation

Launched in Europe / USA in March 2005

Positive customer acceptance Expand shelf share and build on positive momentum of

original BIC® _Soleil®

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BIC Strategy Implementation

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”

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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

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BIC Strategy Implementation

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!

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BIC Strategy Implementation

Launching in Europe in 2006 Accelerate consumers trade-up to triple-blades.

Bridge the price gap between premium twins and triples

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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

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BIC Strategy Results

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 KEY METRIC… Repurchase Rate

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BIC Strategy Results

REPURCHASE RATE 5-Feb-05 14,8% 30% 43% 0 30 60

Gillette Sensor 3 Schick Xtreme 3 Bic Comfort 3 15%

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14,8% 30% 43% 0 15 30

Gillette Sensor Schick Xtreme Bic Soleil

BIC Strategy Results

REPURCHASE RATE

5-Feb-05

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BIC Strategy Results

2005 Volume Share by Segment

WESTERN EUROPE USA

12,6% 32,4% 0 50 100 BIC Share of Tw in Blade

BIC Share of triple Blade 11,3% 26,7% 0 50 100 BIC Share of Tw in Blade

BIC Share of triple Blade

11%

27%

13%