Davide Campari-Milano N.V. · MIL:CPR
Davide Campari-Milano — 9M 2009 Earnings Presentation
30 slides from Davide Campari-Milano's earnings presentation, Nov 11, 2009
Slide 1: 2009 Nine Months Results
2009 Nine Months Results Conference call 11 November 2009 Nine months results to 30 September 2009 - 1
Slide 2: Results highlights
Results highlights g g Bob Kunze-Concewitz, CEO Nine months results to 30 September 2009 - 2
Slide 3: Nine Months ended 30 September 2009 - Highlights
Nine Months ended 30 September p 2009 - Highlights g g 9M 2009 Published Change at Organic € million change constant FX change Net sales 696 5 696.5 7 2% 7.2% 5 8% 5.8% -1.3% 1 3% Contribution after A&P 278.8 17.4% 14.6% 5.1% (1) EBITDA pre one-off's 177.8 21.0% 17.4% 4.4% (1) EBIT pre one-off's ff
Slide 4: Consumption trends overview
Consumption p trends overview Bob Kunze-Concewitz, CEO Nine months results to 30 September 2009 - 4
Slide 5: Spirits segment key market trends
Spirits p segment g key y market trends Consumption Shipments (like-for-like (like-for-like change in change in value): value) AC Nielsen data (9M Sept09 vs 9M Sept08) (9M Sept09 vs 9M Sept08) ITALY Spirits' market performance Spirits -1.8% 1.8% Gruppo Campari Spirits 3.7% 5.8% Gruppo Campari Aperit
Slide 6: Sales review
Sales review Bob Kunze-Concewitz, CEO Nine months results to 30 September 2009 - 6
Slide 7: 2009 Nine months net sales - Growth drivers
2009 Nine months net sales - Growth drivers €649.6 m € (8.2) m € 9.5 m € 45.6 m € 696.5 m -1.3% 1 3% +1 5% +1.5% +7.0% 7 0% (*) Breakdown of change in perimeter +7 2% +7.2% €m (1) Acquisitions 35.8 Agency brands, net (2) 9.8 Total external growth 45.6 (1) Wild T Turkey k (€ 31.0 31 0 m), ) Odessa Od
Slide 8: Net sales analysis by region
Net sales analysis y byy region g Italy € 271.3 271 3 m +1.3% 1 3% +0.0% 0 0% -0.5% 0 5% € 273.4 273 4 m > Good results in a tough environment. > Increased market share in a declining spirit market thanks to +0 8% +0.8% good performance of key aperitifs leaders Aperol, Aperol Campari and CampariSoda
Slide 9: Net sales analysis by region
Net sales analysis y byy region g Americas > Negative organic growth driven by: € 196.8 m -7.4% +4.4% +12.4% € 215.3 m - US improved organic trend (-6.8%) thanks to strong results in Q3: +8.4% driven by SKYY Vodka and X-Rated strong consumption trend - Brazil (-18.0%): improved trend in a very tough
Slide 10: Net sales analysis by segment
Net sales analysis y byy segment g Spirits Wines € 452.0 m +1.6% +2.2% +9.1% € 510.1 m € 99.9 m -8.6% +0.0% +4.6% € 95.9 m -4.0% +12.9% 9M 2008 Organic Forex External 9M 2009 9M 2008 Organic Forex External 9M 2009 > Positive organic sales growth, driven by strong results of Aperol, > Negative perfor
Slide 11: Net sales breakdown
Net sales breakdown 9M 2009 consolidated net sales : € 696.5 m Breakdown by region Breakdown by segment RoW and Duty Free 7.2% Soft Drinks Other (5.1% in 9M 2008) 11.6% 1.4% (2.0% in 9M 2008) (13.1% in 9M 2008) Italy Americas (1) 39.3% Wines 30.9% 13.8% (41.8% in 9M 2008) Spirits (30.3% in 9M 2008)
Slide 12: Review of top brands
Review of top p brands % change in sales value 9M 2009 / 9M 2008 Spirits at constant at actual FX FX Campari -7.0% -7.2% > Good progression in Italy and key European markets (in particular Germany), more than offset by destocking in largest market Brazil where consumption is stable on the brand SKYY
Slide 13: Review of top brands (cont'd)
Review of top p brands ((cont’d)) % change in sales value 9M 2009 / 9M 2008 Wines at constant at actual FX FX Cinzano -3.1% -2.6% > Strong results in Germany more than offset by Eastern Europe sparkling wines Cinzano -21.9% -22.2% > Strong results in Germany more than offset by Eastern Europe vermou
Slide 14: Nine Months 2009 consolidated results
Nine Months 2009 consolidated results Paolo Marchesini, CFO Nine months results to 30 September 2009 - 14
Slide 15: Consolidated CAAP
Consolidated CAAP Change at Organic (€ million) 9M 2009 9M 2008 FX Perimeter actual forex growth Net sales 696.5 100.0% 649.6 100.0% 7.2% -1.3% 1.5% 7.0% (1) COGS (299.4) -43.0% (294.2) -45.3% 1.8% Gross margin 397.1 57.0% 355.4 54.7% 11.7% Advertising and promotion (118.4) -17.0% (117.9) -18.2% 0.4
Slide 16: Consolidated EBIT
Consolidated EBIT Change at Organic (€ million) 9M 2009 9M 2008 FX Perimeter actual forex growth Contribution after A&P 278.8 40.0% 237.5 36.6% 17.4% +5.1% 2.8% 9.5% (1) SG&A (119 3) (119.3) -17.1% 17 1% (104 9) (104.9) -16.2% 16 2% 13 7% 13.7% EBIT before one-off's 159.4 22.9% 132.6 20.4% 20.3% 3.8
Slide 17: Consolidated Group's pretax profit
Consolidated Group’s p p pretax p profit Change at (€ million) 9M 2009 9M 2008 actual forex Operating profit = EBIT 157 5 157.5 22.6% 22 6% 133 5 133.5 20.6% 20 6% 17 9% 17.9% Net financial income (expenses) (22.8) -3.3% (16.1) -2.5% 41.8% Income from associates (0.5) -0.1% 0.2 0.0% Put option costs
Slide 18: Analysis of net debt and interest charges
Analysis y of net debt and interest charges g € million 30 September 2009 Wild Turkey 31 December 2008 30 September 2008 Analysis by currency financing and interest rates Cash and cash equivalents 150.2 (26.4) 172.6 157.9 P Payables bl tto bbanks k (51 2) (51.2) (107 5) (107.5) (84 7) (84.7) Real es
Slide 19: Analysis of net debt and interest charges (cont'd)
Analysis y of net debt and interest charges g ((cont’d)) Analysis of debt by class and issue date Debt maturity profile at 30 Sept 2009 (avg: 6.3 yrs) 230.6 at 30 Sep 09 (as % of gross debt) (€ million) 171.9 USPP 2002 90.7 68.3 75.1 FACILITIES 11% 49.5 47.9 2009 27.5 31% 0,3 2009 2010 2011 2012 201
Slide 20: Net Working Capital
Net Working g Capital p (€ million) Organic FX Perimeter 30 Sept 2009 31 Dec 2008 Total change change change change Receivables (1) 168.0 272.1 (104.1) (115.5) 5.6 5.8 Inventories 294.1 165.7 128.4 46.0 (0.4) 82.8 Payables (175.7) (152.1) (23.6) (13.1) 0.8 (11.3) Net Working Capital 286.4 285.7 0.8
Slide 21: Update on business initiatives
Update p on business initiatives Bob Kunze-Concewitz, CEO Nine months results to 30 September 2009 - 21
Slide 22: Update on Wild Turkey
Update p on Wild Turkeyy > Business integration successfully completed in June 2009 > US market • bourbon performing in line with category • American Honey growing at double digit rate > Australia • structure set up activities: front line management in place • positive performance both of straight b
Slide 23: Conclusion and outlook
Conclusion and outlook Bob Kunze-Concewitz, CEO Nine months results to 30 September 2009 - 23
Slide 24: Conclusion & outlook
Conclusion & outlook > First nine months results were quite satisfactory • organic business regained momentum in third quarter 2009 • positive perimeter impact of new acquisitions started to come through > Outlook on markets progression progression, risks and opportunities remains unchanged Existi
Slide 25: Supplementary schedules
Supplementary schedules Schedule - 1 Analysis of 9M 2009 net sales growth by segment and region Schedule - 2 9M 2009 consolidated income statement Schedule - 3 Q3 2009 consolidated income statement Schedule - 4 Average exchange rates in 9M 2009 Nine months results to 30 September 2009 - 25
Slide 26: Net sales analysis by segment and region
Supplementary schedule - 1 Net sales analysis by segment and region Consolidated net sales by segment 9M 2009 9M 2008 Change of which: € m % € m % % organic forex external Spirits 510.1 73.2% 452.0 69.6% 12.9% 1.6% 2.2% 9.1% Wines 95.9 13.8% 99.9 15.4% -4.0% -8.6% 0.0% 4.6% Soft drinks 80.6 11.6% 84
Slide 27: 9M 2009 Consolidated income statement
Supplementary schedule - 2 9M 2009 Consolidated income statement 9M 2009 9M 2008 Change € m % € m % % Net sales (1) 696.5 100.0% 649.6 100.0% 7.2% (2) (299.4) -43.0% (294.2) -45.3% 1.8% COGS Gross margin 397.1 57.0% 355.4 54.7% 11.7% Advertising and promotion (118.4) -17.0% (117.9) -18.2% 0.4% Contr
Slide 28: Q3 2009 Consolidated income statement
Supplementary schedule - 3 Q3 2009 Consolidated income statement Q3 2009 Q3 2008 Change € m % € m % % Net sales (1) 254.7 100.0% 218.4 100.0% 16.6% (2) (106.5) -41.8% (100.6) -46.0% 5.9% COGS Gross margin 148.2 58.2% 117.8 54.0% 25.8% Advertising and promotion (46.4) -18.2% (42.6) -19.5% 8.9% Contri
Slide 29: Average exchange rates
Supplementary schedule - 4 Average exchange rates 9M 2009 9M 2008 % change US dollar : 1 Euro 1.365 1.522 Euro : 1 US dollar 0.7326 0.6571 11.5% Brazilian Real : 1 Euro 2.837 2 837 2.562 2 562 Euro : 1 Brazilian Real 0.3525 0.3903 -9.7% Nine months results to 30 September 2009 - 29
Slide 30: WWW.CAMPARIGROUP.COM
For additional information: Investor Relations - Gruppo Campari Phone: +39 02 6225 330; Fax: +39 02 6225 479 E-mail: investor.relations@campari.com; Website:http://investors.camparigroup.com/ WWW.CAMPARIGROUP.COM Nine months results to 30 September 2009 - 30
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