Pernod Ricard SA · EURONEXT:RI
Pernod Ricard SA — H1 2010/11 Earnings Presentation
82 slides from Pernod Ricard SA's earnings presentation, Feb 17, 2011
Slide 1: 2010/11 Half-Year Sales and Results
2010/11 Half-Year Sales and Results Recovery of business activities confirmed Strong growth in sales and results Continued rapid debt reduction Increase in 2010/11 full-year guidance Organic growth in profit from recurring operations close to +7% 17 February 2011 This presentation can be downloaded
Slide 2: Presentation structure
Presentation structure • Overall Analysis • Sales Analysis • Profit from recurring operations • Summarised income statement • Analysis by geographic region • Group share of net profit from recurring operations • Non-recurring items and net profit • Conclusion and outlook 2
Slide 3: 2010/11 1st Half-Year Key Figures
2010/11 1st Half-Year Key Figures Sales: € 4,282 million (+13%, organic growth +7%) driven by the Top 14: volume +8%, sales +13%* and emerging markets**: sales +16%* with a recovery in Europe and North America: sales + 2%* Marked increase in advertising and promotion expenditure (+11%*, A&P to s
Slide 4: 2010/11 1st Half-Year Key Figures
2010/11 1st Half-Year Key Figures Strong growth in results: Profit from recurring operations: € 1,210 million (+14%, organic growth +8%) Group share of NPRO: € 726 million (+12%) Group share of net profit: € 666 million (+10%) Continued rapid debt reduction (- € 864 million) and marked improveme
Slide 5: 2010/11 1st Half-Year Environment
2010/11 1st Half-Year Environment Confirmed trend for global economic recovery*: GNP growth 2007 2008 2009 2010 2011 USA +2% - -3% +3% +4% Eurozone +3% +1% -4% +2% +1% Emerging markets +8% +5% +3% +8% +7% World +4% +2% -1% +5% +5% Currencies: high volatility and strengthening EUR since July 1,55
Slide 6: Presentation structure
Presentation structure • Overall Analysis • Sales Analysis • Profit from recurring operations • Summarised income statement • Analysis by geographic region • Group share of net profit from recurring operations • Non-recurring items and net profit • Conclusion and outlook 6
Slide 7: Change in 1st Half-Year Sales
Change in 1st Half-Year Sales +9% -3% +7% (104) 325 272 +13% 4,282 3,789 HY1 09/10 sales Organic growth Forex impact Group structure HY1 10/11 sales Organic growth: +7% (Spirits = +8%, Wines = +1%) Quite favourable forex impact, primarily due to the strength of the USD and many other currencies:
Slide 8: Pernod Ricard's 2010/11 HY1 Highlights
Pernod Ricard’s 2010/11 HY1 Highlights A greater number of growth drivers Brands • Acceleration of premium brands • Ongoing strong growth of brands that remained buoyant during the crisis (Martell, Jameson, The Glenlivet, Havana Club, ABSOLUT excluding the US, Indian whiskies) • ABSOLUT’s renewed g
Slide 9: Main technical effects of HY1 2010/11
Main technical effects of HY1 2010/11 − Venezuela: sales curtailed (-42%*) due to difficulties in accessing USD (Chivas, Something Special). Negative impact on PRO of about 6 M€ − France: sales ahead of excise duty increases on 1 January 2010 (unfavourable comparatives) + China: growth in China
Slide 10: Focus on 2nd quarter 2010/11 sales growth
Sales growth Focus on 2nd quarter 2010/11 +10% -3% +6% (66) 117 209 +12% 2,403 2,143 Q2 09/10 sales Organic growth Forex impact Group structure Q2 10/11 sales Organic growth +6% driven by the Top 14 (+10%) Positive forex effect, primarily due to the strength of USD, CNY, INR, MXN and AUD Group
Slide 11: Analysis of organic sales growth
Analysis of organic sales growth FY 2009/10 HY1 2010/11 Top 14 Spirits & Champagnes +4% +13% Priority Premium Wines -2% +3% 18 key local spirits brands +4% +2% Other brands and activities -3% -1% Total +2% +7% Very favourable growth mix Improved trend (Top 14, Wines) Premium brands* represented 71%
Slide 12: Portfolio review: Top 14 Spirits & Champagnes
Portfolio review Top 14: Spirits & Champagnes Volume: +8% Sales: +13%* % of Group sales: 59% % of advertising and promotion expenditure: 76% *Organic growth 12
Slide 13: Top Spirits & Champagnes
Top 14 Spirits & Champagnes Accelerated growth in HY1 2010/11, with price/mix remaining very favourable (+5%) Volume organic Net Sales Price/mix effect growth organic growth Absolut 8% 7% -1% Chivas Regal 11% 11% 1% Ballantine's Ricard 9% -1% 13% 3% 4% 4% 8 brands out of 14 Jameson 16% 18% 3% repor
Slide 14: ABSOLUT
Volume +8% Sales* +7% Confirmed recovery in the US Strong growth in other markets US: improvement confirmed ABSOLUT in the US HY1 2009/10 HY2 2009/10 HY1 2010/11 Depletions -5% +2% +4% Nielsen -1% +5% +6% NABCA -7% +5% +6% Other markets: double-digit growth (+15%*) with positive price/mix : • On
Slide 15: ABSOLUT Marketing Initiatives & Innovation
Volume +8% Sales* +7% Marketing Initiatives & Innovation Success of Holiday 2010 limited edition “ABSOLUT GLIMMER” Confirmed solid performance of “ABSOLUT BERRY ACAI” and launch of “ABSOLUT WILD TEA” “ABSOLUT WATKINS” and “ABSOLUT BROOKLYN” limited editions Launch of “ABSOLUT ELYX” (test pha
Slide 16: Chivas Regal
Volume +11% Sales* +11% Excellent HY1, bolstered by a couple of CHIVAS: new “Live with Chivalry” commercial technical effects Double-digit growth in Asia from China, India, Vietnam and Duty Free markets, as well as Japan. (Favourable technical effect for Japan in Q1 + 30,000 9L cases) Double-d
Slide 17: Ballantine's
Volume +9% Sales* +13% Impressive growth in Europe and outstanding growth in Asia and America, with a very favourable mix effect Ballantine’s Finest (volume +7%): strong growth in many markets (Africa and Middle East, Poland, Latin America, Asia and Duty Free) which offset the decline in Spain and
Slide 18: Continued success of Martell
Volume +20% Sales* +32% New "Martell Cordon Bleu” commercial Continued success of Martell Continuous improvement in quality mix (VS -4% but Noblige +48%, XO +46% and Extra +65%) and very favourable impact of price increases Very strong growth in Asia: • China: consolidation of number 2 rank in c
Slide 19: Jameson
Volume +16% Sales* +18% Over 3 million cases** sold globally and over 1 million cases** in the US in Q2 2010/11 US: ongoing very strong increase in depletions (+27%) in HY1 2010/11, Nielsen +29%, NABCA +26% Robust growth in Europe, especially in Jameson’s main markets: Ireland and France Recov
Slide 20: Ricard
Volume -1% Sales* +3% Launch of new Ricard bottle France: good performance (+1%) due to off-trade market share gains (Nielsen +1% in a market -3%). despite unfavourable comparatives (stocking ahead of excise duty increase at the end of 2009) and unfavourable weather conditions Decline on the Spa
Slide 21: Havana Club and Beefeater
& Volume +17% Sales* +10% Double-digit growth in most key markets: Cuba, Germany, Chile and France Continued success of “3 años” in Germany and Añejo blanco in Cuba (negative mix effect). Both qualities grew by +21% in the period Slight decline in historical export markets (Spain and Italy) wi
Slide 22: Royal Salute and The Glenlivet
& Volume +33% Sales* +31% Remarkable growth in most key markets: China, Taiwan, Vietnam and Asian Duty Free (favourable comparatives) Strong growth in Europe and America Polo sponsorship (Dubai, India, etc) Good start for Royal Salute “62 Gun Salute” (Duty Free RSP USD 2,200) Volume +12% Sal
Slide 23: Malibu and Kahlua
& Volume +4% Sales* +1% Success of the “Summer State of Mind” platform Malibu growth driven by innovation: Malibu Cocktails (lower RSP), “Malibu Winter Edition” (snowflakes), … Success in the US: excluding cocktails, depletions +2%, Nielsen +1% and NABCA +4% Moderate growth in Europe, with v
Slide 24: Mumm and Perrier-Jouët
& Renewed growth for champagne Patrick Jouin’s sabre Volume +8% Sales* +9% France: off-trade market share gains (Nielsen +3% in a stable market). On-trade +4% during the period. Vigorous growth in all key export markets excluding the UK Extension of prestige range with the launch of new “Mumm
Slide 25: Priority Premium Wines
Priority Premium Wines Renewed volume growth for the first time since HY1 2007/08 Volume: +3% Sales: +3%* % of Group sales: 5% % of advertising and promotion expenditure: 3% Volume stable Sales* +1% Volume +8% Sales* +4% Volume +11% Sales* +13% Volume +15% Sales* +24% *Organic growth 25
Slide 26: Group Wine Strategy
Priority Premium Wines Group Wine Strategy Focus / Premiumisation / Flexibility Consumer focus: development of strong and innovative brands, tailored to new consumption trends, with an attractive price to quality ratio Multi-origin and multi-market approach: extended product line, tailored to ea
Slide 27: 18 key local spirits brands
18 key local spirits brands Volume: +5% Sales: +2%* % of Group sales: 17% % of advertising and promotion expenditure: 13% *Organic growth 27
Slide 28: 18 key local spirits brands performance
18 key local spirits brands Sound but contrasting performance overall by the 18 key local spirits brands: +5% in volume and +2%* in value • Continued very strong growth by local whisky brands in India, Royal Stag and Blender’s Pride, which continue to gain market share in their respective segments (
Slide 29: Presentation structure
Presentation structure • Overall Analysis • Sales Analysis • Profit from recurring operations • Summarised income statement • Analysis by geographic region • Group share of net profit from recurring operations • Non-recurring items and net profit • Conclusion and outlook 29
Slide 30: Presentation structure
Presentation structure • Overall Analysis • Sales Analysis • Profit from recurring operations • Summarised income statement • Analysis by geographic region • Group share of net profit from recurring operations • Non-recurring items and net profit • Conclusion and outlook 30
Slide 31: Summarised income statement
Summarised income statement HY1 HY1 Organic (€ million) ∆ ∆ 2009/10 2010/11 Sales 3,789 4,282 +13% +7% Gross margin after logistics costs 2,263 2,604 +15% +8% GM / sales 59.7% 60.8% Advertising & promotion expenditure (642) (765) +19% +11% A&P / sales 17.0% 17.9% Contribution after A&P expenditure (
Slide 32: PRO change in 1st Half-Year
PRO change in 1st Half-Year 82 (32) 98 +8% -3% +9% 1,210 1,062 HY1 09/10 PRO Organic growth Group structure Forex impact HY1 10/11 PRO During HY1 2010/11: • € 32 million negative effect on PRO, primarily due to the disposal of certain Scandinavian and Spanish activities • Quite positive foreign ex
Slide 33: Gross margin after logistics costs
Gross margin after logistics costs HY1 Organic HY1 (€ million) ∆ 2009/10 2010/11 Gross margin after logistics costs 2,263 2,604 +8% GM / sales 59.7% 60.8% +110bps Increase in gross margin due to an overall positive price/mix effect and a favourable movement in average foreign exchange rates during
Slide 34: Advertising & promotion expenditure
Advertising & promotion expenditure HY1 Organic HY1 (€ million) ∆ 2009/10 2010/11 Advertising & promotion expenditure (642) (765) +11% A&P / sales 17.0% 17.9% +90bps Increase in advertising and promotion expenditure, consistent with the Group’s strategy of generating sustainable growth in value
Slide 35: Structure costs
Structure costs HY1 Organic HY1 (€ million) ∆ 2009/10 2010/11 Structure costs* (559) (629) +6% Structure costs / sales 14.7% 14.7% * Structure costs: Selling expenses + General and administrative + Other income/(expenses) stability Stability in structure costs/sales ratio Organic structure costs
Slide 36: Profit from recurring operations
Profit from recurring operations HY1 Organic HY1 (€ million) ∆ 2009/10 2010/11 Profit from recurring operations (PRO) 1,062 1,210 +8% PRO / sales 28.0% 28.3% +30bps Strong PRO growth (+14%) including +8% organic growth Operating margin of 28.3% in HY1 2010/11, an increase of 30 bps reflecting: •
Slide 37: Presentation structure
Presentation structure • Overall Analysis • Sales Analysis • Profit from recurring operations • Summarised income statement • Analysis by geographic region • Group share of net profit from recurring operations • Non-recurring items and net profit • Conclusion and outlook 37
Slide 38: Organic sales growth by region
Organic sales growth by region FY 2009/10 HY1 2010/11 Asia & Rest of World +9% +17% Americas +4% +4%* Europe (excluding France) -5% +2% France - +5% World +2% +7% All regions contributed to growth acceleration: •Asia & Rest of World remains the most dynamic driver •Strong trend improvement in Europe
Slide 39: Diversification of the Group's sales growth profile
Diversification of the Group’s sales growth profile between FY 2009/10 and HY1 2010/11 Total 2009/10 full-year sales = +2%* 2 500 32% 2 000 46% of sales 20% achieved in growth 1 500 US France countries in FY 13% 14% China 1 000 Germany 12% India 2009/10 9% Spain Brazil South Korea 500 UK Australia R
Slide 40: Contribution by region to PRO growth
Contribution by region to PRO growth* Profit from recurring operations (€ million) 66 2 11 4 1% 4% 3% 1,145 1,062 23% HY1 09/10 PRO Asia & RoW Americas Europe excl. France France HY1 10/11 PRO on a like-for-like basis Every region now contributes to organic growth in the Group’s profit from recurrin
Slide 41: Asia & Rest of World: continued very buoyant growth
Asia & Rest of World: continued very buoyant growth HY1 HY1 Organic (€ million) ∆ 2009/10 2010/11 ∆ Sales* 1,145 1,481 +29% +17% Gross margin after logistic costs 635 866 +36% +21% GM / sales 55.4% 58.5% Advertising and promotion expenditure (209) (282) +35% +21% A&P / sales 18.2% 19.1% Profit from
Slide 42: Asia – Rest of World: continued very buoyant growth
Asia – Rest of World: continued very buoyant growth Very strong organic growth, primarily driven by: • China (Martell and Scotch whiskies, with favourable price/mix for both categories) • India with local whiskies • Other fast-expanding emerging markets (Vietnam, Africa, Turkey) • Very strong reco
Slide 43: Americas: improved trend
Americas: improved trend HY1 HY1 Organic (€ million) ∆ 2009/10 2010/11 ∆ Sales 1,000 1,151 +15% +4% Gross margin after logistic costs 621 713 +15% +3% GM / sales 62.1% 61.9% Advertising and promotion expenditure (172) (200) +16% +5% A&P / sales 17.2% 17.4% Profit from recurring operations (PRO) 302
Slide 44: Americas: US return to growth
Americas: improved trend US: return to growth Gradually recovering market: • Nielsen + 3% and NABCA +2% in HY1 2010/11 • Faster growth of premium brands • Decline in promotional intensity of some competitors • Improved on-trade consumer trend Pernod Ricard’s performance improved Pernod Ricard in t
Slide 45: Americas: improved trend
Americas: improved trend Moderate sales growth in Canada, with a decline of local brands but strong growth of Top 14 strategic brands and Priority Premium Wine brands Moderate growth also in Mexico (local brandies down but strong growth of Scotch whiskies) Good half-year in Central and South A
Slide 46: Europe (excluding France): Strong recovery in HY1 2010/11
Europe (excluding France): Strong recovery in HY1 2010/11 HY1 HY1 Organic (€ million) ∆ ∆ 2009/10 2010/11 Sales 1,247 1,235 -1% +2% Gross margin after logistic costs 715 722 +1% +3% GM / sales 57.4% 58.5% Advertising and promotion expenditure (172) (181) +5% +4% A&P / sales 13.8% 14.6% Profit from r
Slide 47: Europe (excluding France): Strong recovery in HY1 2010/11
Europe (excluding France): Strong recovery in HY1 2010/11 Western Europe: moderate sales growth* • Germany: double-digit growth, bolstered by favourable comparatives • Marked improvement in Spain and the UK with a very slight progression in sales in HY1 2010/11 (vs. -7%* and -10%* respectively in
Slide 48: France
France HY1 HY1 Organic (€ million) ∆ ∆ 2009/10 2010/11 Sales 397 415 +5% +5% Gross margin after logistic costs 291 303 +4% +5% GM / sales 73.3% 73.1% Advertising and promotion expenditure (89) (102) +15% +15% A&P / sales 22.4% 24.6% Profit from recurring operations (PRO) 116 118 +2% +3% PRO / sales
Slide 49: Analysis by geographic region
Analysis by geographic region Sales Profit from recurring operations HY1 HY1 2009/10 11% 2009/10 11% 30% 29% 33% 32% 26% 28% • France • Europe HY1 • Americas HY1 2010/11 10% • Asia & RoW 2010/11 10% 34% 35% 29% 27% 27% 28% Asia & RoW’s share of Group results increased in HY1 2010/11 Contribution
Slide 50: Share of emerging and developed markets
Share of emerging* and developed markets Sales Profit from recurring operations HY1 2010/11 HY1 2010/11 37% 61% 39% 63% • Emerging* markets • Mature markets Sales in emerging* markets grew +16%** in HY1 2010/11 representing nearly ¾ of the Group’s total growth Mature markets enjoyed renewed grow
Slide 51: Presentation structure
Presentation structure • Overall Analysis • Sales Analysis • Profit from recurring operations • Summary income statement • Analysis by geographic region • Group share of net profit from recurring operations • Non-recurring items and net profit • Conclusion and outlook 51
Slide 52: Financial income/(expenses) from recurring operations
Financial income/(expenses) from recurring operations HY1 HY1 (€ million) 2009/10 2010/11 Net financing costs (219) (232) Other financial income/(expenses) from recurring operations (27) (11) Financial income/(expenses) from recurring operations (246) (243) Minor improvement in financial income/(e
Slide 53: Change in net debt
Change in net debt 639 47 355 533 € (864) million 10,584 9,720 Net Debt at 30.06.10 FCF Disposal/acquisitions + Dividends Translation adjustment Net Debt at 31.12.10 other* * Including € 39 million contribution to AD pension plans Strong € 864 million debt reduction in HY1 2010/11, with: • Strong
Slide 54: Free Cash Flow
Free Cash Flow HY1 HY1 (€ million) 2009/10 2010/11 Profit from recurring operations 1,062 1,210 Amortisation, depreciation and provision movements and other 99 91 Self-financing capacity from recurring operations 1,161 1,301 Decrease (increase) in WCR (202) (158) Financial income/(expenses) and taxe
Slide 55: Free Cash Flow
Free Cash Flow Significant generation of FCF from recurring operations: • Accelerated PRO growth (organic growth and forex impact) • Strict control of WCR (movement in WCR of € (158) million vs. € (202) million in HY1 2009/10, in spite of sales growth) with: ⌐ Reduction in finished goods inventori
Slide 56: Change in Net Debt/EBITDA ratio
Change in Net Debt/EBITDA ratio Closing rate Average rate Change in EUR/USD rate: 2009/10 2010/11 1.23 1.34 1.39 1.33 Ratio at 30 June 2010 5.3(1) 4.9(2) EBITDA & Cash generation excluding forex and group structure effects (0.3) (0.3) (0.4) Group structure 0.0 0.0 Forex impact (0.5) (0.1) Rati
Slide 57: Debt maturity at December 2010
Debt maturity at 31 December 2010 At 31 December 2010, Pernod Ricard held € 1.0 billion in cash and € 2.2 billion in undrawn credit lines Debt repayments are covered until the 2012/13 financial year inclusive 8 (€ billion) 0.9 6 Cash 4 Other 6.1 2 1.4 Commercial paper .0,1 0.8 1.0 0.1 Bonds 0 -1
Slide 58: Gross debt structure by currency and type of rate
Gross debt structure by currency and type of rate at 31 December 2010 (€ million) 12 000 10,727 10 000 8 000 53% 47% 53% 6 000 Fixed 4 000 48% 14% Collars 58% 2 000 15% 13% 33% Variable 37% 0% 0 29% -2 000 Euro USD Other Total Debt breakdown by currency consistent with that of EBITDA About 1/3 o
Slide 59: Income tax
Income tax Income tax: € (263) million Income tax on items from Income tax on non-recurring items: recurring operations: € (224) million € (39) million Rate: 23.1% (vs. + € 31 million* in HY1 2009/10) Rise in effective income tax rate on items from recurring operations to 23.1% (vs. 19.3% in HY1 2
Slide 60: Minority interests & other
Minority interests & other HY1 HY1 (€ million) 2009/10 2010/11 Minority interests & other (10) (18) Minority interests notably include: • Havana Club • Corby (Canada) • JBC (South Korea) The increase in minority interests & other resulted from the growth in net profit of JVs, in particular that
Slide 61: Group share of net profit from recurring operations
Group share of net profit from recurring operations HY1 HY1 (€ million) ∆ 2009/10 2010/11 Profit from recurring operations 1,062 1,210 +14% Net financial expense from recurring operations (246) (243) -1% Income tax on items from recurring operations (157) (224) +42% Minority interests & other (10) (
Slide 62: Net earnings per share from recurring operations
Net earnings per share from recurring operations – Group share HY1 HY1 (€ million and €/share) ∆ 2009/10 2010/11 Diluted number of shares (thousands) 264,669 264,757 - Net profit from recurring operations 648 726 +12% Diluted net earnings per share from 2.45 2.74 +12% recurring operations 12% growth
Slide 63: Presentation structure
Presentation structure • Overall Analysis • Sales Analysis • Profit from recurring operations • Summary income statement • Analysis by geographic region • Group share of net profit from recurring operations • Non-recurring items and net profit • Conclusion and outlook 63
Slide 64: Non-recurring items
Non-recurring items Other operating income and expenses HY1 (€ million) 2010/11 Capital gains and losses on disposals and asset valuations • Impact of disposals: Spanish wines and spirits, Renault cognac, New Zealand wines, etc. (10) • Impact of asset writedowns (3) Restructuring costs (9) Other n
Slide 65: Summary income statement
Summary income statement HY1 HY1 (€ million) ∆ 2009/10 2010/11 Profit from recurring operations 1,062 1,210 +14% Other operating income and expenses (93) (29) NS Operating profit 969 1,181 +22% Financial income/(expenses) from recurring (246) (243) -1% operations Other non-recurring financial items
Slide 66: Presentation structure
Presentation structure • Overall Analysis • Sales Analysis • Profit from recurring operations • Summary income statement • Analysis by geographic region • Group share of net profit from recurring operations • Non-recurring items and net profit • Conclusion and outlook 66
Slide 67: Conclusion
Conclusion Recovery confirmed: • Accelerated growth of sales (+7%*) and profit from recurring operations (+8%*) • All regions experienced growth: ⌐ Continued dynamism of emerging markets (including more and more markets becoming significant for Pernod Ricard) ⌐ Recovering US market, in which Perno
Slide 68: Outlook
Outlook Increase in our guidance for organic growth in profit from recurring operations for the 2010/11 financial year to “close to +7%” (vs. “close to +6%” previously) Confirmation of our target for a Net Debt*/ EBITDA* ratio close to 4 at the 30 June 2012 year end * Translated at the average forei
Slide 69: Next communications
Next communications Conference calls featuring Regional CEOs: • Asia: 21 March 2011 with Pierre Coppéré • Europe: 16 June 2011 with Laurent Lacassagne • Americas: 15 December 2011 with Philippe Dréano Next communication from Pernod Ricard Holding: • 3rd quarter 2010/11 sales: 5 May 2011 69
Slide 70: Pernod Ricard
“4 e~w ‘=> Pernod Ricard Créaleurs de ComiVvialiCé
Slide 71: Appendices
WW, aS -_> Pernod Ricard Créateturs de cowmivialité Appendices
Slide 72: Strategic brands organic growth
Strategic brands organic growth Volume organic Net Sales Price/mix effect growth organic growth Absolut 8% 7% -1% Chivas Regal 11% 11% 1% Ballantine's 9% 13% 4% Ricard -1% 3% 4% Jameson 16% 18% 3% Malibu 4% 1% -3% Beefeater 4% 6% 1% Kahlua -5% -6% -1% Havana Club 17% 10% -6% Martell 20% 32% 12% The
Slide 73: Sales analysis by region
Sales analysis by region Net Sales Q1 2009/10 Q1 2010/11 Change Organic Growth Group Structure Forex impact (€ million) France 157 9.5% 164 8.7% 7 5% 7 5% (0) 0% 0 0% Europe excl. France 520 31.6% 517 27.5% (2) 0% 10 2% (26) -5% 14 3% Americas 456 27.7% 482 25.7% 26 6% 13 3% (1) 0% 15 3% Asia / Rest
Slide 74: Summarised Consolidated Income Statement
Summarised Consolidated Income Statement (€ million) 31/12/2009 31/12/2010 Change Net sales 3,789 4,282 13% Gross Margin after logistics costs 2,263 2,604 15% A&P expenditure (642) (765) 19% Contribution after A&P expenditure 1,621 1,839 13% Structure costs (559) (629) 13% Profit from recurring oper
Slide 75: Foreign Exchange Effect
Foreign Exchange Effect On Profit Forex impact HY1 2010/11 Average rates evolution On Net from (€ million) Sales Recurring 2009/10 2010/11 % Operations US Dollar USD 1.45 1.33 -8.9% 76 50 Chinese Yuan CNY 9.93 8.89 -10.5% 39 23 Indian Rupee INR 69.06 60.46 -12.4% 27 8 Korean Won KRW 1.75 1.53 -12.4%
Slide 76: Group Structure Effect
Group Structure Effect On Profit from Group structure HY1 2010/11 On Net Sales Recurring (€ million) Operations Scandinavian assets (50) (14) Other (55) (18) Total Group structure (104) (32) 76
Slide 77: Consolidated Balance Sheet 1/2
Consolidated Balance Sheet 1/2 Assets 30/06/2010 31/12/2010 (€ million) (Net book value) Non-current assets Intangible assets and goodwill 17,757 17,020 Property, plant and equipment and investments 2,083 2,045 Deferred tax assets 1,307 1,270 Total non-current assets 21,148 20,334 Current assets Inv
Slide 78: Consolidated Balance Sheet 2/2
Consolidated Balance Sheet 2/2 Liabilities and shareholders’ equity 30/06/2010 31/12/2010 (€ million) Shareholders’ equity 9,122 9,480 Minority interests 216 224 of which profit attributable to minority interests 27 19 Shareholders’ equity – attributable to equity 9,337 9,704 holders of the parent N
Slide 79: Working capital analysis
Working capital analysis ∆ December HY1 2010/11 December June December FX effects and HY1 2009/10 (€ million) 2010 WC variation 2009 2010 2010 reclassifications WC variation vs June 2010 Work-in-progress 2,979 3,170 3,098 (72) (66) (7) 43 Trade receivables before factoring/securitization 2,197 1,597
Slide 80: Change in Net Debt
Change in Net Debt (€ million) 31/12/2009 31/12/2010 Self-financing capacity 1,099 1,225 Decrease (increase) in working capital requirements (202) (142) Operating profit cash 897 1,083 Financial result cash (240) (247) Tax cash (73) (118) Net acquisitions of non financial assets (58) (78) Free Cash
Slide 81: Profit from recurring operations by region
Profit from recurring operations by region World (€ million) HY1 2009/10 HY1 2010/11 Change Organic Growth Group structure Forex impact Net sales (Excl. T&D) 3,789 100.0% 4,282 100.0% 493 13% 272 7% (104) -3% 325 9% Gross margin after logistics costs 2,263 59.7% 2,604 60.8% 341 15% 188 8% (37) -2% 1
Slide 82: Profit from recurring operations by region
Profit from recurring operations by region Europe excluding France (€ million) HY1 2009/10 HY1 2010/11 Change Organic Growth Group structure Forex impact Net sales (Excl. T&D) 1,247 100.0% 1,235 100.0% (12) -1% 24 2% (68) -5% 31 2% Gross margin after logistics costs 715 57.4% 722 58.5% 6 1% 20 3% (2