Davide Campari-Milano N.V. · MIL:CPR
Davide Campari-Milano — Merger or Acquisition (January 2002)
29 slides from Davide Campari-Milano's merger presentation, Jan 28, 2002
Slide 1: Acquisition of Sella & Mosca S.p.A. and Zedda Piras S.p.A.
Acquisition of Sella & Mosca S.p.A. and Zedda Piras S.p.A. Conference Call - Milan, 28 January 2002
Slide 2: Disclaimer
Disclaimer SLIDE 1 This document has been prepared by Davide Campari – Milano S.p.A. solely for information purposes and for use in presentations of the Group’s strategies and developments. The information contained herein has not been independently verified. No representation or warranty, express o
Slide 3: Agenda
Agenda SLIDE 2 ♦ Deal terms ♦ Company descriptions – Sella & Mosca – Zedda Piras ♦ Consolidated financial highlights ♦ Rationale for acquisition and strategic implications
Slide 4: Deal terms
Deal terms
Slide 5: Executive summary
Executive summary SLIDE 4 ♦ On 25 January 2002 Campari announced the acquisition of the privately-owned companies Sella & Mosca S.p.A., prominent player in the premium wines category and Zedda Piras S.p.A., the leading company in the liqueur market in Sardinia ♦ The price paid for the acquisition of
Slide 6: Shareholding structure
Shareholding structure SLIDE 5 Zedda Piras S.p.A. Vittorio Sella AlphaBeta NV, NL SFIRS S.p.A. 1.65% 10% 20.73% 67.62% Sella & Mosca S.p.A. 93.66% 100% QuingDao Sella & Mosca Société Civile du Domaine Winery Co. Ltd., China de la Margue, France Newly-established trading company French chateau with (
Slide 7: Location of Sella & Mosca and Zedda Piras
Location of Sella & Mosca and Zedda Piras SLIDE 6
Slide 8: Company Description I: Sella & Mosca S.p.A.
Company Description I Sella & Mosca S.p.A.
Slide 9: Sella & Mosca overview
Sella&Mosca overview SLIDE 8 ♦ Founded in 1899, Sella & Mosca is today the most important winery in Sardinia covering an area of 600 hectares (540 devoted to vineyards with an estimated value of approx. Euro 30 million) ♦ The company is a full cycle producer of fine wines made from grapes grown and
Slide 10: Outlook on the Italian wine market
Outlook on the Italian wine market SLIDE 9 ♦ Italy is world’s largest producer with a total volume of 5,400 million litres and an overall market share of 21% in 1999 (1) ♦ The industry is highly fragmented (nearly 43,000 players) except for a very limited number of larger companies with a turnover h
Slide 11: Volume growth in the Modern Trade in Italy
Volume growth in the Modern Trade in Italy SLIDE 10 Modern Trade by price category in 2000 Modern Trade by price category in 2000 RED WINES WHITE WINES Retail price (Euro) +28.5% Retail price (Euro) +40.8% +16.5% +17.6% +25.7% +14.0% +11.1% +6.9% +7.8% +3.4% Total Red < 2.84 2.85 - 3.86 3.87 - 4.90
Slide 12: Sella & Mosca wine portfolio
Sella & Mosca wine portfolio SLIDE 11 Premium wines Branded wines
Slide 13: Presence in the trade channels
Presence in the trade channels SLIDE 12 Total number of direct clients served in 2000 Total number of restaurants selling by trade channel (1) Sella & Mosca and Zedda Piras products (1) Channel No. of clients Grocery shops 232 Specialists 645 Restaurants 2,054 Wholesalers 286 Modern trade 173 Other
Slide 14: Sella & Mosca strategic goals
Sella & Mosca strategic goals SLIDE 13 ♦ Develop brand image and brand awareness (today of 23.6% (1)) — target the premium end category of wine market — implement selective trade marketing activities and initiatives targeted at the end consumer ♦ Leverage distribution in the domestic and internation
Slide 15: Company Description II: Zedda Piras S.p.A.
Company Description II Zedda Piras S.p.A.
Slide 16: Zedda Piras overview
Zedda Piras overview SLIDE 15 ♦ Zedda Piras S.p.A., established in 1854 to produce and distribute classic regional liqueurs, today has the absolute leadership in the mirto category with a higher than 50% market share ♦ Mirto di Sardegna, derived from the myrtle berry which grows in the island, is th
Slide 17: Sweet liqueurs: market size and performance
Sweet liqueurs(1): market size and performance SLIDE 16 (million liters) +4.4% (YoY change) +5.6% 22.9 15.6 +1.9% 7.3 2001 Off trade On trade Total market ♦ Italian sweet liqueur market is estimated to be 22.9 million litres, accounting for 15.5% of total spirits market and increasing by 4.4% in vol
Slide 18: Price and consumer positioning
Price and consumer positioning SLIDE 17 Brand (Company) Average price per 1 liter (Euro)* Mirto di Sardegna (Zedda Piras) 12.58 (13.05 non discounted price) Mirtocè (Stock) 12.49 Limoncè (Stock) 10.86 Other labels 8.89 * Average prices as of June 2001 ♦ Zedda Piras is positioned in the premium price
Slide 19: Market positioning in continental Italy
Market positioning in continental Italy SLIDE 18 ♦ Brand and product category awareness in Sardinia is absolutely global ♦ In continental Italy: Indicators Launch in 1999 June 2001 Brand awareness 4% 26.4% Product category awareness 19.8% 39.5% Increase in No.of consumers on previous year n.a. 96.7%
Slide 20: Presence in the trade channels
Presence in the trade channels SLIDE 19 ♦ Weighted distribution in Sardinia is 100% ♦ In continental Italy: Total number of direct clients served in 2000 Total HO.RE.CA. by trade channel 15,623 Channel No. of clients 13,670 (No. of point of sale) Grocery shops 117 Specialists 364 HO.RE.CA. 719 5,859
Slide 21: Zedda Piras strategic goals
Zedda Piras strategic goals SLIDE 20 ♦ Exploit the growing trend in consumption of genuine regional products following the success of limoncello and establish Mirto di Sardegna as the alternative to limoncello ♦ Strengthen Zedda Piras as a national brand and establish it as the reference brand in th
Slide 22: Consolidated financial highlights
Consolidated financial highlights
Slide 23: Consolidated financial results
Consolidated financial results SLIDE 22 Zedda Piras and Sella & Mosca 1999 A 2000 A YoY change 2001 E YoY change (Euro '000) (Euro '000) % (Euro '000) % Net turnover (1) 25,673 28,188 9.8% 30,711 9.0% Cost of good sold (12,023) (13,414) 11.6% (13,991) 4.3% Gross margin 13,649 14,773 8.2% 16,720 13.2
Slide 24: Net turnover and profitability breakdown
Net turnover and profitability breakdown SLIDE 23 Net turnover breakdown by segment 2001E Euro 30.7 million Spirits 33.9% Trading profit breakdown by segment 2001E Euro 9.0 million Wines Spirits 66.1% 47.5% Wines 52.5%
Slide 25: Profitability analysis
Profitability analysis SLIDE 24 SPIRITS (Zedda Piras) WINES (Sella & Mosca) Net turnover and trading profit 1999 - 2001E Net turnover and trading profit 1999 - 2001E 10,410 20,301 9,243 18,945 7,706 17,966 41.1% 40.5% 37.9% 24.2% 23.3% 21.7% 1999 2000 2001 1999 2000 2001 Net turnover (Euro '000) Tra
Slide 26: Rationale for acquisition and strategic implications
Rationale for acquisition and strategic implications
Slide 27: Rationale and strategic implications
Rationale and strategic implications SLIDE 26 ♦ Strengthen Campari spirits portfolio with the acquisition of the leading brand in the myrtle liqueur category, the fastest growing segment within the Italian sweet liqueur market ♦ Exploit a unique acquisition opportunity of a well established and medi
Slide 28: Priorities for 2002
Priorities for 2002 SLIDE 27 ♦ Integrate the acquisition, not only the brand but the business ♦ Deliver synergies with the existing distribution network ♦ Optimise A&P spending to strengthen the brands ♦ Evaluate further acquisitions within strategic criteria with regard to the still premium wines s
Slide 29: Questions & Answers
Questions & Answers www.sellaemosca.com Thank you
Davide Campari-Milano — Merger or Acquisition (January 2002) on 6ix