Remy Cointreau Sa · EURONEXT:RCO
Remy Cointreau Sa — Remy Cointreau Sa Ord — FY2022-23 Earnings Presentation
48 slides from Remy Cointreau Sa's earnings presentation, Jun 1, 2023
Slide 1: Rémy Cointreau 2022-23 Full Year Results
) REMY COINTREAU 2022-23 FULL YEAR RESULTS June 1, 2023 Marie-Amélie de Leusse, Chairwoman Eric Vallat, CEO Luca Marotta, CFO COINTREAU CHANGES EVERYTHING
Slide 2: Introduction
Introduction Marie-Amélie de Leusse, Chairwoman
Slide 3: Rémy Cointreau starts the year focused and confident
Rémy Cointreau starts the year focused and confident Strong organic sales growth led by APAC and EMEA +10.1% nen Ze) Sharp normalization in the US Successful value-based strategy driven by +10.1% mix improvement and price increase of Price-Mix effects ° All time high in Sales, Gross Margin and COP M
Slide 4: Key Highlights
Key Highlights Eric Vallat, CEO
Slide 5: Key figures: organic sales, gross margin, COP margin
+10.1%* +14.2%* +16.2%* +37.5% 71.3% of sales 27.7% of sales €5.79 +2.6 pts* +1.4 pts* €1,548.5m €429.6m > x2 vs. 3Y 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: Crowning years of great progress
. crowning 3 years of great progress i: +14.3% 6.5m std cs 2019-2023 2019-2023 Volume +4.0 pts 2019-2023 - Gross Margin A&P 71.3% 22% of Sales
Slide 7: Solid progress towards 2030 strategic priorities
Solid progress towards 2030 strategic priorities @ REMY MARTIN USHER A TASTE OF PASSION Price-Mix: +2.6 pts in GM vs. LY Price-Mix: +3.1 pts in GM vs. 3Y Global weight of intermediate cognac: Approx. +15 pts vs. 2019-20
Slide 8: Solid progress towards 2030 strategic priorities
Solid progress towards 2030 strategic priorities Enhance portfolio management Liqueurs & Spirits +18.7 % vs. LY Unlocked growth potential of Global Priority Brands FY 22-23 Organic Sales growth vs. LY
Slide 9: Solid progress towards 2030 strategic priorities
Solid progress towards 2030 strategic priorities Deploy consumer-centric culture and model : Build Marketing intelligence + Know your clients desirable brands Ann. LOUIS XIII Advertising be . PORTFOLIO § Smartly drive Public relations REMY MARTIN Leverage their purchasing journey visibility Brand ad
Slide 10: Implementing responsible growth: our climate strategy
Solid progress towards 2030 strategic priorities Implementing responsible growth: our climate strategy Validated by SBTi Reduce carbon footprint: 4 key levers Energy - Packaging Raw material/ingredients - Transport -50% of CO2 per bottle by 2030 Net Zero by 2050 ADAPT Invest in R&D to identify clima
Slide 11: Solid progress towards 2030 strategic priorities
Solid progress towards 2030 strategic priorities Reduce GHG emissions © 38% of renewable energy in 2022-23 Other scope 3 o Target: 100% of renewable energy in product sites and © -13% CO2 in 2022-23 -42% of CO2 by 2030 o Target: -25% of CO2 by 2030 Carbon Footprint 2022-23 = 0° 78% of naked bottle i
Slide 12: Business Review
Business Review Eric Vallat, CEO
Slide 13: Strong organic sales growth in all divisions
FY 2022-23- Strong organic sales growth in all divisions, well above pre-Covid Cognac Liqueurs & Spirits Group li Cognac i Liqueurs & Spirits I Partner Brands Group sales 2% breakdown 1% +7.6% +18.7% +10.1% +41.3% vs. 3Y +54.1% vs. 3Y +43.6% vs. 3Y Group Brands: +10.5% Partner Brands: -5.3% Organic
Slide 14: Broad-based growth in Americas and APAC
FY 2022-23- Broad-based growth, showing meaningful expansion in Americas and APAC since Covid AMERICAS +2.5% +58.4% vs 3Y +11.0% +8.8% vs. 3Y +22.7% +49.1% vs. 3Y Group: +10.1% Group sales 50% breakdown mAmericas gyAPAC EMEA Organic sales growth 14
Slide 15: Focus US - Strong value market share gains since 2019
Focus US - Strong value market share gains since 2019 = Nielsen value depletions (OfFf-Trade) — Nabca value depletions 2022 vs. 2019 2022 vs. 2019 +81% +60% +35% 415% bey Cognac Rémy Martin Cordials Cointreau Cognac Rémy Martin Cordials Cointreau 15
Slide 16: Focus China - Strong value market share gains since 2019-20
Focus China - Strong value market share gains since 2019-20 Rémy Martin vs. Cognac i) Rémy Martin vs. Cognac Value market share evolution Value growth 2022 vs. 2019 +0.3 pts +0.2 pts +1.2 pts 22.3% 22.2% +1.0 5 21.9% 2019 2020 2021 2022 Cognac Rémy Martin Cognac Club VSOP & intermediate Rémy Martin
Slide 17: Current Operating Margin by division: Cognac
FY 2022-23 Current Operating Margin by division Cognac: +14.7% organic growth in COP Sales €1,100.0m Reported COP/Sales : +2.8 pts Organic change (%) +76% Volume /Price-Mix -9.3% / +16.9% +0.5 pts Current Operating Profit €405.2m eee Volume: +0.2 pts i i Price/Mix: +3.7 pts i 36.8% Organic COP/Sales
Slide 18: Current Operating Margin by division: Liqueurs & Spirits
FY 2022-23 Current Operating Margin by division Liqueurs & Spirits:+18.1% organic growth in COP Sales €418.9m Organic change (%) +18.7% Volume / Price-Mix +8.3% /+10.5% Current Operating Profit €48.1m Volume: -0.1 pts Price/Mix: -11 pts trae Organic COP/Sales: -0.1 pts ~~ : FY 21/22 COP/Sales Gross
Slide 19: Financial Results
g & . A 3 4 3 = 3 ce) n Financial Results Luca Marotta, CFO
Slide 20: FY 2022-23 Current Operating Profit
FY 2022-23 Current Operating Profit Ending March (in €m) FY 2022-28 FY2021-22 Reported % «= O”sanie % a Net Sales 1548.5 1,312.9 417.9% +10.1% +43.6% Gross Profit 1103.8 901.1 +22.5% +14.2% 452.3% % of sales 71.3% 68.6% +2.6 pts +26 pts +4.0 pts Sales and marketing expenses (521.6) (433.2) 420.4% 41
Slide 21: FY 2022-23 Group Current Operating Margin
FY 2022-23 Group Current Operating Margin FY 21/22 COP/Sales seeeeeecteenteeeecetentnncneaen Reported COP/Sales : +2.3 pts Volume: flat Price/Mix: +26 pts Organic COP/Sales: +1.4 pts Gross A&P Distribution/Other Currency FY 22/23 Margin COP/Sales 21
Slide 22: FY 2022-23 Net profit
FY 2022-23 Net profit Organic % Organic % Ending March (in €m) FY 2022-23 FY 2021-22 Reported % a VLD a VIBAD Current Operating Profit 429.6 334.4 428.5% 416.2% +76.8% Other non-current income (expenses) @.1) (14.1) - - - Operating profit 426.5 320.3 433.2% 420.7% 492.3% Net Financial income (charge
Slide 23: FY 2022-23 Non-current items
FY 2022-23 Non-current items Ending March (in €m) FY 2022-23 FY 2021-22 Net profit - Group share 293.8 212.5 Other non-current income expenses 3.1 14.1 Non-current tax items (0.4) (3.4) Impact of tax rate changes on deferred taxes in France, the UK and Greece - 49 Net profit excluding non-current it
Slide 24: FY 2022-23 Net debt/Cash Flow
FY 2022-23 Net debt/Cash Flow Ending March (in €m) FY 2022-23 FY 2021-22 Change Opening net Financial debt (1 April) (353.3) (314.3) -39.0 Gross operating profit (EBITDA) 481.6 383.4 98.2 WCR for eaux-de-vie and spirits in ageing process (152.6) (67.7) -84.9 Other working capital items (42.0) (72.7)
Slide 25: FY 2022-23 Net Financial expenses
FY 2022-23 Net Financial expenses Ending March (in €m) FY 2022-23 FY 2021-22 Net debt servicing costs (11.7) (10.4) Net currency gains/losses (2.5) (0.7) Other financial expenses (net) 4) (2.1) (17.6) (13.2) Net financial income (charges) 25
Slide 26: FY 2023-24E Foreign exchange - Hedging impact
FY 2023-24E Foreign exchange - Hedging impact 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24E Average EUR/USD conversion rate 1.16 1.11 1.17 1.16 1.04 1.10 Average EUR/USD hedged rate 1.18 1.16 1.17 1.17 1.11 1.11 Total Sales impact (in €m) 1.5 24.5 (36.3) 24.6 102.8 -€50/-€60m Total COP impact (in
Slide 27: Balance sheet as of March 31, 2023
Balance sheet as of March 31, 2023 (€m) March. \ 2023 Non-current 1,004 assets Current 2,109 Assets excl. cash o/w inventories 1,816 Cash 74 Total Assets 3,187 Inventories/Assets in % 32% 66% 57% 2% 100% 57% 1,880 63% 1615 54% 16 4% 2,979 100% 54% Shareholders’ equity Current and Non-current liabili
Slide 28: FY 2022-23 ROCE
FY 2022-23 ROCE 28.5% 26.7% Cognac 14.2% 121% : Liqueurs & Spirits 25.7% 23.8% Group Brands 2021-22 2022-23 6.2% 14% — Brands 244% 22.2% Group 28
Slide 29: FY 2022-23 Changes in capital employed
FY 2022-23 Changes in capital employed (Me) iN ) (*+16.0%) (+17 5%) +471 16 sa =i March-22 Cognac Liqueurs & Spirits Partner Reported Brands Mars- 22 Organic Currency March-23 Reported 29
Slide 30: o o ED (*)
• • • o o +1.00€ +1.00€ ED (*) ED (*) +1.00€ +1.00€ +1.00€ ED (*) ED (*) ED (*) 30
Slide 31: Disciplined allocation of cash
Disciplined allocation of cash Deliver long-term shareholder value c. €110-120m Capex + Expand the brand portfolio in 2023-24E €70-80m + Unlock Cognac core business Strategic WCR in 2023-24E + Reinforce routes to market * Scale the new outflow Share buyback Dividend TSR c.€165m €3.00 Sept.-Dec. 2022
Slide 32: Outlook
Outlook Eric Vallat, CEO
Slide 33: We are ahead of our 10Y plan
We are Gross Margin* 2019-2030 2019-20 COP Margin* 2019-2030 21.0% 2019-20 ahead of our 10Y plan > 71.6% 69.2% 66.8% XT) Year 1 Year 2 Year 3 2023-24 Year 5 (Initial roadmap target) (guidance) _ | | 7 Year 1 Year 2 Year 3 2023-24 Year S (guidance) __ (Initial roadmap target) In organic terms - At 20
Slide 34: While facing short-term headwinds in the US
While Facing short-term headwinds in the US ... Navigating a challenging short-term environment Very high base of comparison in the US +18. ick Normalization of consumption Increasing promotional intensity Tequila MS gain in high-end spirits 34
Slide 35: We are preparing for recovery
we are preparing for recovery Navigating a challenging short-term environment Very high base of comparison in the US Ql 22-23: ¢. +185% on 3 ck Normalization of consumption Increasing promotional intensity Tequila MS gain in high-end spirits Leveraging sequential improvement Unwind bases of comparis
Slide 36: Confident in our ability to recover in H2 23-24 and beyond
Confident in our ability to recover in H2 23-24 and beyond Our portfolio will benefit from consumer trends o Drink less but better o Premiumization o Cultural relevance o Local vs global o Rise in mixology o Heightened environmental & social consciousness
Slide 37: Cognac increases its desirability over time
Confident in our ability to recover in H2 23-24 and beyond Cognac increases its desirability over time = e 2019 2023 2023 1. Whisky 1. Whisky 2. Vodka 2. Vodka Baijiu Cognac Whisky Cognac, among Top 5 confirms its level of desirability Cognac confirms its strong lead in international spirits Based o
Slide 38: Rémy Martin emerged stronger from Covid in the US
Confident in our ability to recover in H2 23-24 and beyond Rémy Martin emerged stronger from Covid in the US Americas A&P ratio (% of sales) 14% 15% As reported FY19/20 FY 20/21 FY21/22 FY 22/23 2020 2023 Rémy Martin entered Top 15 most desirable premium brands in Spirits in 2022 38
Slide 39: 2023-24 outlook: V-shaped trajectory
2023-24 outlook: V-shaped trajectory © Continued strong normalization of consumption in the US (to remain significantly above 2019-20) o Strong organic growth in the rest of the world led by China, EMEA/Rest of Asia and Travel Retail (back to 2019-20 level) Rémy Cointreau anticipates stable organic
Slide 40: Appendices
Appendices
Slide 41: Quarterly sales by division
Quarterly sales by division In €m Q1 22/23 Qt 21/22 Reported % Organic % Cognac 292.3 199.6 +46 4%. +31,5% Liqueurs & Spirits 1097 853 +28.7% 419.4% Subtotal: Group Brands 402.0 284.9 +411% +27 9%, Partner Brands 79 8.2 -3.1% 38% Total 409.9 2931 439.9% +27. 0% In &m Q2 22/23 Q2 21/22 Reported % Org
Slide 42: Quarterly sales by division
Quarterly sales by division In &m Q3 22/23 Q3 21/22 Reported % Organic % Cognac 314.0 3327 56% “11.0% Liqueurs & Spirits 1144 987 +15:7% +10.1% Subtotal: Group Brands 428.1 4314 -08% 62% Partner Brands 95 1 43.6% 43.9% Total 4376 4405 07% 6.0% In€m Q4 22/23 Q4 21/22 Reported % Organic % Cognac 1479
Slide 43: Organic growth: at constant currency & scope
43 Organic growth: at constant Currency & scope
Slide 44: Foreign exchange - Hedging impact
Foreign exchange - Hedging impact 111 Hedged rate €/$ A € verage €/$ 110 WW 2016-17 2017-18 2018-19 2019-20 March March March March 2020-21 March 2021-22 March ff \ 1.04 2022-23 March X ) 44
Slide 45: Key events during the year
Key events during the year July 21,2022 July 27,2022 September 7, 2022 September 29,2022 Combined General Meeting - Change in governance As part of the long-prepared succession plan, the Board of Directors changed the governance of the Rémy Cointreau Group as follows: 1/ Appointment of Marie-Amélie
Slide 46: Key events during the year
Key events during the year October 20, 2022 October 27, 2022 December 12, 2022 December 21, 2022 January 12,2023 Rémy Cointreau Group announced the creation of Maison Psyché Rémy Cointreau Group announced the creation of a luxury perfume house, Maison Psyché, that draws on the special blending and a
Slide 47: Next Financial publication dates
Next Financial publication dates
Slide 48: Q&A
COINTREAU _ CHANGES EVERYTHING @) REMY COINTREAU Q&A
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