Pernod Ricard SA · EURONEXT:RI
Pernod Ricard SA — Investor Day (May 2010)
33 slides from Pernod Ricard SA's investor day presentation, May 20, 2010
Slide 1: Pernod Ricard 2010 Press & Capital Market Day
Pernod Ricard 2010 Press & Capital Market Day May 20th, 2010 This presentation can be downloaded from our website: www.pernod-ricard.com 1 Pierre Pringuet Agility: The Road to Leadership 2 1
Slide 2: The world has changed
The world has changed… changed… 3 has changed… changed…. 4 2
Slide 3: 10 years of strong growth in sales and profits
10 years of strong growth in sales and profits In bn€ x4 7,2 x6 1,8 1,8 0,3 Profit from recurring operations 5 10 years of strong value creation In bn€ 9.2 15.8 3.5 3.1 Capitalisation Capital increases(2) Value creation(3) Capitalisation in 2000(1) in 2009(4) (1) 3 January 2000 (2) Oceane conversion
Slide 4: 2000: France and Europe accounted for 73% of net sales
2000 : France and Europe accounted for 73% of PR net sales 7 Top 12 markets in 2010 (net sales) Asia/ Asia/RoW # 1 Region for Pernod Ricard in 2010 8 4
Slide 5: Top brands in 2000 and strategic brands in 2010
Top 12 brands in 2000… 2000… 9 … the 15 strategic brands in 2010 and now ? 10 5
Slide 6: Our company-wide initiative
Our company- company-wide initiative 11 Our company- company-wide initiative 12 6
Slide 7: Our company-wide initiative: the mindset of a leader
Our company- company-wide initiative Qualitatively: Quantitatively: the one that the one that leads changes the rules industry growth The mindset of a leader 13 Pernod Ricard Culture PERNOD RICARD CULTURE Way of Working The Values Behaviour Entrepreneurial spirit Decentralization Mutual Trust Conviv
Slide 8: We are all passionate entrepreneurs
We are all passionate entrepreneurs 15 16 8
Slide 9: The Pernod Ricard House of Brands: portfolio segmentation and priorities
Thierry Billot & Michel Bord Focus & Innovation 17 The Pernod Ricard House of Brands: portfolio segmentation & priorities Global Icons (2) FOCUS Priority Premium Priority Prestige Spirit Brands (7) Spirit & Champagne Brands (5) Priority Premium Wine Brands (4) Key Local Spirit Brands (18) 18 9
Slide 10: Top Spirits & Champagne brands
Pernod Ricard external communication Top 14 Spirits & Champagne brands Priority Premium Priority Prestige Global Icons Spirit Brands Spirit & Champagne Brands FOCUS 19 Royal Salute joins the top 14 spirit and champagne brands FOCUS 20 10
Slide 11: Top wine brands and local spirit leaders
Pernod Ricard external communication Top 14 Spirits & Champagne brands Priority Premium Priority Prestige Global Icons Spirit Brands Spirit & Champagne Brands FOCUS Top 4 Wine brands Priority Premium Wine Brands 18 Local Spirit leaders Key Local Spirit Brands 21 Our decentralized organization Should
Slide 12: Our decentralized organization
Our decentralized organization NO FOCUS 23 Our decentralized model is well- well-proven BRAND MARKET COMPANIES COMPANIES FOCUS 6 main 70 Brand Market Companies Companies 24 12
Slide 13: Organization strengthened to better seize category opportunities
Organization strengthened to better seize category opportunities Create a Vodka Brand Company With The Absolut Company assuming the role of Vodka brand company for Pernod Ricard vodka brands (excluding value brands) Managing Absolut, Friis, Wyborowa along with Polish FOCUS vodkas with international
Slide 14: Innovation is a key driver for growth in the industry
Innovation is a key driver for growth in the Industry 30% of spirits growth comes from new products T otal gro ss g rowth = 17 4 Mcs INNOVATION 75 122 52 30% 70% 392 293 1992 Innov at ion Organic Brand Organic Brand 2008 Growth Decline 27 Innovation is a key driver for brand building Innovation… Inn
Slide 15: Innovation and Luxury are deeply linked
Innovation and Luxury are deeply linked Premium and luxury brands innovate constantly Strong roots and substance give permission and opportunity to innovate Products and experiences are deeply linked INNOVATION PRODUCT PRODUCT + EXPERIENCE COMMUNICATION HERMES Leica VUITTON Murakami PRADA Pop-Up Sto
Slide 16: Experience innovation and the digital revolution
Experience Innovation with Beefeater Beefeater brings London’ London’s Portobello Road Market to Madrid COMMUNICATION INNOVATION Invitations via social media and word of Brings Beefeater ‘London London’ London proposition to life mouth Builds loyalty and engagement 50 000 consumers attended Generate
Slide 17: Communication innovation: from push to pull
Communication innovation: from Push to Pull CLASSIC MEDIA NEW MEDIA TV / Press / Posters / Shopper Digital … based on … based on INNOVATION INTERRUPTION ENGAGEMENT …but increasingly Freedom of contact with consumers blocked by zapping Brand content & TIVO More consumer touchpoints From imposing bran
Slide 18: From advertising to continuous conversation
From advertising to continuous conversation: Radio MaliBoomBoom Spain From running 30” 30” radio spots to running the first branded web radio station in Spain – “Radio MaliBoom Boom” Boom” INNOVATION The Spanish expression of a global communications campaign established in digital media 5 days a wee
Slide 19: Branded Utility: World's Best Bars
Branded Utility: World’ World’s Best Bars World’ World’s most popular spirits website Over 300,000 unique visitors per month Significant new investment – INNOVATION increased and improved content Mobile version live Further apps in production 37 Why do we need to innovate in distribution ? Shift of
Slide 20: Distribution innovation: from consumers to shoppers and customers
Distribution innovation: from consumers to shoppers & customers Category Management Brand Key Account Marketing Trade Marketing Management INNOVATION focus focus focus Consumer Shopper Customer 39 Distribution innovation: from consumers to shoppers & customers Terres de Whisky’ ‘Terres Whisky initia
Slide 21: ABSOLUT Rock Edition and changing consumer behaviour
Distribution innovation: from consumers to shoppers & customers ABSOLUT Rock Edition - Worldwide Rock Edition 360 activities Rock Edition in Off Trade INNOVATION 41 Responding to changing consumer behaviour Selectively reallocate sales resources from on- on- to off- off-trade Apply on- on-trade tech
Slide 22: Responding to changing consumer behaviour
Responding to changing consumer behaviour Organizing home parties BRAZIL RUSSIA INNOVATION Royal Salute Dinner Martell Private Party with Duke of Argyll ABSOLUT Private Party Ballantine’ Ballantine’s Home Party Competition 43 Responding to changing consumer behaviour Using the Off Trade to inspire t
Slide 23: People: what do we expect from our managers?
Bruno Rain People 45 What do we expect from our managers ? To share our values Entrepreneurial spirit, mutual trust, strong sense of ethics… ethics… with conviviality PEOPLE DEVELOPMENT A way of working A behaviour Entrepreneurial spirit Decentralization Mutual trust Conviviality Strong sense of eth
Slide 24: We want employees to share our values
We want employees to share our values Our values are a strength – we have a very low turnover while Our transforming acquisitions have enriched the organization whi le PEOPLE DEVELOPMENT maintaining our roots and values Decentralization facilitates integration Leverage our history and our values to
Slide 25: Fostering leadership; CSR context
We want to foster a mindset of leadership, creativity and passion Reinforce the capacity of our managers to develop their employees employees (people management) PEOPLE DEVELOPMENT LEADERSHIP SKILL SET MANAGEMENT SKILL SET LIVE THE VALUES MANAGING PEOPLE Evaluation criteria DRIVE DEVELOPING PEOPLE T
Slide 26: What are our CSR priorities?
What are our CSR priorities ? Priority n° n°1: Responsible consumption On which the Group should be exemplary: drink and drive and SOCIAL RESPONSIBILITY education 51 What are our CSR priorities ? Priority n° n°1: Responsible Consumption On which the Group should be exemplary: drink and drive and SOC
Slide 27: What are our CSR priorities? (cultural initiatives)
What are our CSR priorities ? Priority n° n°1: Responsible Consumption On which the Group should be exemplary: drink and drive and SOCIAL RESPONSIBILITY education Priority n° n°2: Environment: Reduce our impact (water, energy, CO2, eco-packaging, sustainable agriculture, certification) Priority n° n
Slide 28: Pernod Ricard has been the champion of value creation
Pernod Ricard has been the Champion of value creation… creation… Total shareholder return as of 2010 since 20001 (among listed players in the Wine and Spirits Industry) VALUE CREATION Dividend X3.9 Stock price X3.2 X2.8 X2.8 X2.2 Pernod Player 1 Player 2 Player 3 Player 4 Ricard ¹ Excluding compound
Slide 29: Sustained organic growth
... but also to our ability to generate sustained organic growth Pernod Ricard organic net sales growth over the period 2000- 2000-2010 9% 9% VALUE CREATION 8% 8% 7% 6% 6% Average 5% 6% 4% 2% 0% 2000* 2001* 2002* 2003* 2004* 2004- 2005- 2006- 2007- 2008- 2009- 2005 2006 2007 2008 2009 2010 9 months
Slide 30: Targeted KPIs to monitor business performance
Targeted KPIs to monitor business performance Objective Indicator Scope/period Incentive See-through All brands CAAP Monthly basis Profit monitoring VALUE CREATION See-through All affiliates operating profit Monthly basis Operating cash All affiliates flow Monthly basis Cash management Net generated
Slide 31: Cross functional approaches to cost optimization and efficiency
Cross functional approaches to cost optimization and efficiency Regional or global procurement for direct and indirect categories VALUE CREATION 61 Cross functional approaches to cost optimization and efficiency Regional or global IT convergence procurement for direct and indirect categories VALUE C
Slide 32: Broader communication
Broader communication Communicate on non- non-financial business topics, involving operational managers Organize dedicated communication to bond- bond-holders VALUE CREATION Communicate more about the Pernod Ricard ‘Corporate Brand’ Brand’ Improve visibility Without interfering with consumer brand c
Slide 33: Key Messages
6 Key Messages 1 Implement our priorities in terms of brands and geography 2 Developing an ambitious HR policy: leadership, diversity and performance PASSION 3 Putting innovation and creativity at the heart of our work Promote Pernod Ricard brand: source of visibility (‘ (‘Corporate Brand’ Brand’) a