Remy Cointreau Sa · EURONEXT:RCO
Remy Cointreau Sa — H1 2023-24 Earnings Presentation
32 slides from Remy Cointreau Sa's earnings presentation, Nov 30, 2023
Slide 1: 2023-24 Half-Year Results
2023-24 HALF-YEAR RESULTS November 30, 2023 Marie-Amélie de Leusse, Chairwoman Eric Vallat, CEO Luca Marotta, CFO KEEP IT COSI |i a | TINTREAL ~aine % a — - ]
Slide 2: Introduction
. REMY MARTIN COGNAC FINE CHAMPAGNE DREAMING FORWARD SINCE 1724 ~ E .- Introduction Marie-Amélie de Leusse, Chairwoman
Slide 3: A year to head into 2024-25 in the best possible conditions
a year that will allow Rémy Cointreau to head into 2024-25 in the best possible conditions We face short-term headwinds... ... but we can rely on solid foundations — even stronger than in the past... ... underpinned by our long-term vision... ...and strengthened by faster-than-expected progress towa
Slide 4: Business Review
Business Review Eric Vallat, CEO
Slide 5: H1 2023-24 key figures
A&P: +6.5%* -22.2%* 72.2% 21.8% of sales -43.0%* of sales 26.6% of sales OPEX: -5.2%* +0.3 pts* 23.8% of sales -9.8 pts* €636.7m €169.1m Due to rounding, the sum of values presented in this presentation may differ from totals as reported. Such differences are not material. 5 (*) Organic terms
Slide 6: H1 2023-24 sales breakdown by division
H1 2023-24 sales breakdown by division Cognac Liqueurs & Spirits Group li Cognac i Liqueurs & Spirits I Partner Brands 33% (+8 pts) Group sales breakdown 65% (-8 pts) -30.1% +0.1% +9.4% vs. 4Y +55.8% vs. 4Y Group Brands: -22.5% Partner Brands: -3.2% Organic sales growth
Slide 7: H1 2023-24 sales breakdown by region
H1 2023-24 sales breakdown by region AMERICAS -49.9% -3.2% vs 4Y +8.9% 419.4% vs. 4Y +16.6% +55.8% vs. 4Y Group: -22.2% 23% (*7 pts) 37% (-19 pts) Group sales breakdown 40% (#12 pts) mAmericas gyAPAC EMEA Organic sales growth
Slide 8: H1 2023-24 Current Operating Margin by division
H1 2023-24 Current Operating Margin by division Cognac: -4/.2% organic growth in COP Sales €416.1m Organic change (%) -30.1% Volume / Price-Mix -39.0% /+8.9% Current Operating Profit €145.3m os Reported COP Margin: -12.0 pts +0.2 pts COGS & Logistics:-19 pts Price: +14 pts | Mix: +07 pts -0.5 pts a
Slide 9: H1 2023-24 Current Operating Margin by division
H1 2023-24 Current Operating Margin by division Liqueurs & Spirits:-3.5% organic growth in COP Sales €206.7m Organic change (%) +0.1% Volume /Price-Mix -6.5% /+6.6% Current Operating Profit €30.3m COGS & Logistics:-0.2 pts Price: +14 pts Mix: +13 pts 14.7% H1 22/23 Gross ABP Distribution & Currency
Slide 10: Financial Results
g & . A 3 4 3 = 3 ce) n Financial Results Luca Marotta, CFO
Slide 11: H1 2023-24 Current Operating Profit
H1 2023-24 Current Operating Profit Ending September (in €m) H12023-24 -H12022-23 Reported % © O”eanic % a Net Sales 636.7 867.1 -26.6% -22.2% +20.9% Gross Profit 459.9 623.7 -26.3% -21.9% +28.9% % of sales 72.2% 71.9% +03 pt +03 pt +4.5 pts Sales and marketing expenses (231.3) (230.8) +0.2% 46.2% 4
Slide 12: H1 2023-24 Group Current Operating Margin
H1 2023-24 Group Current Operating Margin +0.3 pts COGS & Logistics:-0.9 pts Price: +12 pts - 5.9 pts Mix: flat -0.4 pts boecesseceeneee Organic COP Margin: -9.8 pts o/w circa €25m cost savings H1 22/23 Gross A&P Distribution/Other Currency COP Margin Margin 26.6% H1 23/24 COP Margin 12
Slide 13: H1 2023-24 Net profit
H1 2023-24 Net profit Organic % Organic % Ending September (in €m) H1 2023-24 H12022-23 Reported % vs. H122-23 vs HI 19-20 Current Operating Profit 169.1 319.3 -47.0% -43.0% +16.1% Other non-current income (expenses) 0.0 (4.0) - - - Operating profit 169.1 315.3 -46.4% -42.2% 416.6% Net Financial inc
Slide 14: H1 2023-24 Net debt/Cash flow
H1 2023-24 Net debt/Cash flow Ending September (in €m) H1 2023-24 H1 2022-23 Change Opening net Financial debt (1 April) (536.6) (353.3) -183.3 Gross operating profit (EBITDA) 195.4 343.8 -148.4 WCR for eaux-de-vie and spirits in ageing process (0.8) 21 -2.9 Other working capital items (172.1) (212.
Slide 15: H1 2023-24 Net financial expenses
H1 2023-24 Net financial expenses Ending September (in €m) H1 2023-24 H1 2022-23 Net debt servicing costs (11.7) (45) Net currency gain/loss (1.4) 14 Other financial expenses (net) (2.6) (2.0) (15.7) (5.1) Net financial income (charges) 15
Slide 16: Balance sheet as of September 30, 2023
Balance sheet as of September 30, 2023 (€m) Sept. \ 2023 Non-current 1,023 assets Current 2,243 Assets excl. cash o/w inventories 1839 Cash 278 Total Assets 3,544 Inventories/Assets in % 29% 63% $2% 8% 100% 52% Sept. 2022 996 2,054 1,648 95 3,145 in % 65% 52% 3% 100% 52% Shareholders’ equity Current
Slide 17: Outlook
Outlook Eric Vallat, CEO
Slide 18: In a challenging environment, we are staying the course
In a challenging environment, we are staying the course... Become the worldwide leader in exceptional spirits 18
Slide 19: While mitigating short term impacts
..While mitigating short term impacts Activating sales boost plan Raising visibility through communication Leveraging innovation to drive premiumization New Magnum Xo Night 18- and 20-year The Botanist Single Estate designed Luxury range Rested & Aged Gin Series by Cai Zhi om! Seizing growth opportu
Slide 20: While mitigating short-term impacts
while mitigating short-term impacts One-off savings 60% of FY savings ° A&P: 55% * OVERHEADS: 45% €100m FY 23-24 o/w €25m in H1 Structural savings 20
Slide 21: What is happening in the US? Cyclical or structural?
What is happening in the US? Is it cyclical or structural? Q2 Cognac US Value depletions: -32.8% i The downturn is mostly cyclical © Tequila continues to gain market share, but trends are easing EEE sed o Normalization is structural, but amplified by inflation and thus promotions, while we —_ have n
Slide 22: What is happening in the US?
What is happening in the US? VSOP more exposed to cyclical headwinds While Rémy Martin consumers are well-balanced... VSOP consumers over indexes with Black/African American community 44 m White tm Black/African American In an inflationary context VSOP is losing ground: >» o The most impacted by the
Slide 23: Short-term priorities to reignite growth in the US
Short-term priorities to reignite growth in the US 1738, XO and Louis XIII remain our LT priorities Smart support of VSOP volumes Keep activating upper-end ranges: > 500 events planned in H2 o Adopt a portfolio approach to marketing, by @ReMyMARTIN, X USHER including VSOP in Rémy Martin campaigns o
Slide 24: Outlook
outlook Support depletions/sell-out growth Maintain a strict pricing policy Focus on A&P that drive impact Optimize A&P, leveraging BTL and digital Implement cost-cutting plan (around €100 million) GUIDANCE 24
Slide 25: 2024-25 visibility remains poor; confident on 2029-30 objectives
While 2024-25 visibility remains poor, we are confident we will reach our 2029-30 objectives Va While we are confident over the long run: 2024-25 visibility remains poor and subject to: o Relevant strategy o Impact of geopolitical context on consumption o Solid and sound fundamentals o Timing of US
Slide 26: Appendices
Appendices
Slide 27: Quarterly sales by division
Quarterly sales by division In €m Q1 23/24 Q1 22/23 Reported % Organic % Cognac 155.1 292.3 46.9% 447% Liqueurs & Spirits 95.0 109.7 13.5% 14% Subtotal: Group Brands 250.0 402.0 -37.8% “35.6% Partner Brands 75 79 54% 4.6% Total 257.5 409.9 37.2% 35.0% In€m Q2 23/24 Q2 22/23 Reported % Organic % Cogn
Slide 28: Organic growth: at constant currency & scope
28 Organic growth: at constant Currency & scope
Slide 29: Foreign exchange - Hedging impact
Foreign exchange - Hedging impact 117 Hedged rate €/$ 116 116 116 ~~ 117 Average €/$ — 2018-19 2019-20 2019-20 2020-21 2020-21 2021-22 = 2021-22 March Sept. March Sept. March Sept. March 1.08 1.04 2022-23 Sept Mn |_| 1.04 2022-23 March 2023-24 Sept. 29
Slide 30: Key events during the half-year
Key events during the half-year July 26, 2023 September 28, 2023 October 2, 2023 OCEANE 2026 -Timetable and procedure for exercising put option Rémy Cointreau reminded bondholders of the timetable and procedures for the exercise relating to the early redemption option of the OCEANE due on September
Slide 31: Next Financial publication dates
Next Financial publication dates 2023-24 Q3 Sales 2023-24 Q4 Sales 2023-24 FY Results
Slide 32: KEEPITCSW/I0
KEEPITCSW/I0