BBL ONLINE con David Cabero, General Manager Europe BIC Group

Thank you very much. It's a pleasure to be with you. Barcelona Tech City's work is very important for the city. I started in handball and now I'm in lighters, shavers, and pens – markets that are shrinking as people write less, shave less, and smoke less. In the last 10 years I've lived through five crises: Greece, southern Europe, Eastern Europe (Russia, Turkey), and now COVID. Each time I moved to a new post, a crisis followed. My specialty is managing crisis situations as a general manager. Crises force change. Economic cycles used to be predictable with a few variables, but now we have health crises and soon climate crises. In the next 20-30 years we'll face two or three more crises. Long-term results depend on luck and the quality of decisions. Luck is given, but we can improve decision quality. I'll share a framework: 40 days (survive), 4 months (revive), 4 years (thrive). For each time horizon, we consider people, sales, brand support, M&A, innovation, inventory, accounts receivable, competition, expenses, strategy, and leadership. People: first 40 days, support your people. At 4 months, identify core talent and skills. At 4 years, redesign the organization for the new normal. Sales: first 40 days, don't look at sales; they'll be down. At 4 months, focus on gaining market share. At 4 years, capture market share from competitors that fail. Brand support: first 40 days, stop all campaigns. At 4 months, invest in online, reinforce value message. At 4 years, adjust spending level and messaging. M&A: first 40 days, stop. At 4 months, explore opportunities; companies will be cheaper. At 4 years, buy in the first or second year of crisis, then wait. Innovation: first 40 days, pause. At 4 months, launch only real innovation, not incremental. At 4 years, reassess consumer needs. Inventory: first 40 days, prioritize key products. At 4 months, simplify product lines. At 4 years, extreme simplification linked to innovation. Accounts receivable: first 40 days, protect and prioritize. At 4 months, make provisions and control payment days. At 4 years, offer discounts for early payment. Competition: first 40 days, collaborate. At 4 months, model winners and losers. At 4 years, assess and adjust. Expenses: cut everything you can, but be careful not to cut core capabilities. Strategy and leadership are key: the leader must explain the 'why', inspire belief, and give example. Without followership, nothing works.

Regarding digital extraction, BIC is on the path, but we still have a long way to go. I differentiate three parts: efficiency, digital marketing, and e-commerce. For e-commerce, our product is particular: a four-color pen costs around 1.60 euros, and shipping costs make it hard to acquire customers profitably. We are creating product groups to offer online through Amazon and others. We are growing but limited by our product type. The digital path is long, but we are working on internal efficiency, automation, and commercial marketing. I hope in a few years I can report more progress.

A multinational can only have one direction. The CEO, who is the third generation of the family, sets the strategy. Regional plans must be aligned with global strategy, but implementation can vary by region due to purchasing power and market needs. A leader must create a vision, communicate it, make decisions, act, and have genuine interest in people. When we talk about strategy, we talk about operational plans, but leadership is about that personal presence that people follow.

Best practices can be copy-pasted or used as inspiration. For example, a practice in Spain, Portugal, or Italy might generate an idea that other regions adapt. In a large organization, you need to avoid reinventing the wheel. You need to launch scalable best practice projects. Regional directors must know each other's initiatives to copy or adapt them, saving time.

Two keys: focus on where we could resist, especially in sales. In Europe, we are strong in writing instruments for back-to-school. We had a very good back-to-school with strong sell-in and sell-out, gaining market share in all countries and channels. Second, we focused on over-investing in a few selected countries, financing them through others that are cash cows. We have three countries in Europe where we over-invest, and thanks to that decision, we grew 9% in those countries. This, combined with a good back-to-school, made everything easier.

Environmental impact is reduced in many ways: using less weight, producing locally. Regarding plastic, we are investing in changes in packaging and product. We are committed to targets that will be published. We adhere to the Climate Pledge and Paris Agreement. We are moving toward the three Rs: reduce, reuse, recycle. We are introducing recycled materials, recyclable products, and refillable products. The change will be progressive due to cost and capacity constraints.

Innovation is done in many ways. We have a new department called Group Insights and Innovation to create new territories. But innovation also comes through acquisitions and commercial innovation. We work with startups at the global level because countries are too small to leverage those relationships. It's a balance of all three.

It is an option, but you must focus on what is core. If a department adds little value, you can outsource or create a center of excellence in a low-cost country. It depends on the company and market. For example, Apple outsources production because they have high margins. BIC has lower margins, so we cannot give away 30% margin to a producer for a cheap product like a Bic pen. You have to know your position. In a crisis, you must reassess your core. The question is not to make too many mistakes in decision-making.

Data is used for efficiency in production, knowing the consumer, and market data. BIC produces 40 million units a day worldwide. We have billions of consumers who spend 2-3 euros a year on average. The lifetime value per consumer is low, so data is more aggregate than individual. We use data to see trends, test new products, and understand client interactions. Data on product segments, prices, and price elasticity is key.

Yes, we are. The change in industrial companies takes time. For example, every Bic lighter goes through 40 automated controls before production. Sensors and data tracking are used. There are projects in place and more to come. It's important because we produce about 90% of the products we sell.

We quickly reduced all operating expenses without touching people. We froze all open positions to avoid hiring and then having to lay off later. So far in Europe, no significant restructuring plans. Regarding talent incorporation, in the short term you freeze it until you have visibility. But in the long term, you cannot go without incorporating talent because skills change. You need to invest in people with the right skills. You differentiate short-term decisions from long-term strategy: once you know what skills are core, you incorporate that talent.

Short term: don't be too austere with fiscal policy; support the economy and increase deficit. Focus money on companies and sectors that will survive. Long term: change the country's strategy. Spain is a country of small businesses; help them become medium and large to gain competitiveness. The current model based on tourism and construction limits productivity growth. We need to generate employment in sectors that can increase productivity and wages.

FC Barcelona handball has been the winner of more European cups and leagues. The key is great coaches, a strong culture that hasn't been broken by stars, and discipline. As long as that culture and great players and coaches continue, they will keep winning. I am bullish on Barça handball in the coming years.