Britvic — Investor Presentation (2009)
31 slides from Britvic's investor presentation, 2009
Slide 1: Britvic
\I BRITVIC
Slide 2: The Investment Case
The Investment Case Britvic is a leading branded soft drinks business in the UK and Ireland STRONG MARKET POSITIONS A POWERFUL AND RESILIENT BRAND PORTFOLIO •#1 in UK stills •#1 in UK Licensed On-Premise •#1 or #2 brands in the key (with the #1 cola) categories •#2 in UK carbonates •Barriers to entr
Slide 3: Continuing Our Strong Track Record
Continuing Our Strong Track Record GB/INT’L REVENUE £m GB/INT’L EBIT £m 5.6% CAGR 10.9% CAGR GROUP EPS FREE CASHFLOW £m CAGR 17.6% £250M in 4 years Building A Track Record of Growth And Market Outperformance 2 Note: All numbers are pre-exceptionals unless stated otherwise
Slide 4: A Clear Strategy for Growth
A Clear Strategy for Growth The Preferred Brands for Consumers Drive Availability where products not sold Grow through Innovation Grow Prices Optimising Efficiency and Cash Generation Expand in Europe SHAREHOLDER RETURN 3
Slide 5: Competitive Differentiation
Competitive Differentiation Our Breadth of Portfolio A Track Record of Innovation Success A Unique Combination of Owned Significant opportunity to and Franchised Brands grow EBIT margin 4
Slide 6: Core GB brands
Core GB brands • # 1 cola in Licensed On-Premise • #1 stills brand in the take-home (2) market (1) • # 2 branded cola in take-home (1) • 10th largest UK grocery brand by • # 2 global soft drinks brand (3) value (4) • # 1 ready-to-drink kids’ stills brand(1) • #1 packaged drink in On-Premise (2) • No
Slide 7: Seed GB brands
Seed GB brands • World’s number one sports drink • Acquired by PepsiCo in 2008 • GB is the world’s first launch market for ‘free-from’ • A small category that Britvic can build • A year of consolidation to bring the • Britvic’s strong take-home water brand brand in house • Juicy drench added in 2009
Slide 8: GB Soft Drinks Market Volume
GB Soft Drinks Market Volume A Market That Improved As The Year Went On 7 Source: ACNielsen Scantrack Sept 2009: Take Home
Slide 9: GB Market Volumes and Growth Rates
GB Market Volumes and Growth Rates 52 Weeks 1.4% 5.4% 3.3% -7.5% 0.1% -2.3% -7.2% -3.2% -5.2% 2.6% 5.4% 5.2% 7.0% -2.6% 0.2% 2.3% -2.5% -0.6% -4.8% -5.2% -1.2% -1.2% -2.2% -5.0% -3.1% -6.9% 3.1% 0.5% -11.9% 10.4% 4.4% 4.1% 4.9% 1.0% -32.5% -24.4% Big Brands Have Proved Resilient in 2009 8 Source: AC
Slide 10: Group Performance At A Glance
Group Performance At A Glance +5.6% +80bps +20.6% +5.3% +23.9% Continued EBIT EPS Free Final revenue margin continues cashflow dividend growth increase to grow of £70m increase Another Year Of Strong Top-line Growth And Increased Shareholder Return 9 Note: All numbers are pre-exceptionals unless sta
Slide 11: Guidance – 2010
Guidance – 2010 Revenue Costs Capex • Innovation • A&P spend • GB £40-£45m expected to add run-rate broadly • Operating 1-2% to GB similar to 2009 leases £5-6m revenue in the • Raw material • Ireland €8m full year inflation at 0-1% ¾ Plus a further • Full-year ARP • PVO programme €5m for benefit fro
Slide 12: Drivers Of Growth In The Medium Term
Drivers Of Growth In The Medium Term Market Volume Growth: 2-3% Significant Distribution Opportunities A Proven Contribution From Innovation Price & Promotion Drive ARP Up At Least 1% Significant Growth Drivers For The Organic Business 11
Slide 13: Group EBIT Margin Guidance
Group EBIT- Margin Guidance GB/Int’l Clear top-line Revenue future growth CAGR of 6% drivers Britvic Market recovery Ireland in the medium term New Group Average of 50bp EBIT margin growth p.a. to guidance 2013 12
Slide 14: Summary
Summary z A Strong Record Driven by revenue growth z A Resilient Market Showing Signs of Improvement z Margin Guidance Enhancement z Clear Drivers of Growth 13
Slide 15: Britvic
\I BRITVIC
Slide 16: Supplementary Information
Supplementary Information 16 15
Slide 17: Strong and Growing Market Positions
Strong and Growing Market Positions Stills (£3.4bn) Carbonates (£2.7bn) Take-Home (£6.1bn) Stills (£0.6bn) Carbonates (£1.8bn) Licensed On-Premise (£2.4bn) Source: AC Nielsen Scantrack data to 26 September 2009 & Licensed On-Premise data to September 2009 Total Coverage MAT 16
Slide 18: Flawlessly-Executed Brand Equity Programmes This Year…
Flawlessly-Executed Brand Equity Programmes This Year… 17
Slide 19: …Coupled With Great In-Store Execution
…Coupled With Great In-Store Execution 18
Slide 20: Innovation Expected To Continue Adding 1-2% To GB Revenue
Innovation Expected To Continue Adding 1-2% To GB Revenue In Every Full Year Recent Brands Brand Extensions Pack & Experience Revenue Growth With An Improving Mix 19
Slide 21: Financial Headlines
Financial Headlines FY09 FY08 % £m £m Change Revenue 978.8 926.5 5.6 EBIT 110.1 96.7 13.9 EBIT margin 11.2% 10.4% 80bps Profit after tax 64.2 53.0 21.1 Free cashflow 69.7 66.2 5.3 Adjusted net debt (366.4) (388.4) 5.7 Earnings per share 29.9p 24.8p 20.6 Dividend per share 15.0p 12.6p 19.0 Strong Top
Slide 22: Cashflow
Cashflow FY09 FY08 % £m £m change Operating profit pre-exceptionals 110.1 96.7 13.9 Depreciation & amortisation 40.4 46.2 12.6 EBITDA 150.5 142.9 5.3 Working capital 13.8 25.5 (45.9) Capital expenditure (40.1) (44.3) 9.5 Pension (10.0) (10.0) - Other (44.5) (47.9) 7.1 Free cashflow 69.7 66.2 5.3 Div
Slide 23: Core Brand Review – Carbonates
Core Brand Review – Carbonates •The fastest growing •The fastest growing •Rejuvenation of the cola lemon & lime brand in 2009 •0.7% volume share •1.5% volume share •0.7% volume share growth this year growth this year growth, •Now the number 1 •Now the number 1 •Consumer cola in Licensed On- lemon &
Slide 24: Core Brand Review – Stills
Core Brand Review – Stills •2.1% volume share •0.7% volume share •0.1% volume share growth growth growth •A brand redesign and •Relevant innovation •A brand redesign to new pack formats with Robinsons Be engage both mums introduced Natural and kids •The number 1 •As consumed the •The number 1 kids p
Slide 25: GB Carbonates Market Volume
GB Carbonates Market Volume 24 Source: ACNielsen Scantrack Sept 2009: Take Home
Slide 26: GB Stills Market Volume
GB Stills Market Volume 25 Source: ACNielsen Scantrack Sept 2009: Take Home
Slide 27: Take Home: Stills segment larger but Carbs currently growing faster
Take Home: Stills segment larger but Carbs currently growing faster Take-Home by Retail Value Sales (£6.1 billion) 07-09 YOY CAGR Stills (1.8)% (3.4)% Pure Juice (2.1)% (5.8)% Juice Drinks 0.7 % 0.7 % Plain Water (5.5)% (4.5)% Squash 3.0 % 5.6 % Dairy 2.2 % 3.0 % Smoothies (22.2)% (33.1)% Water Plus
Slide 28: Licensed On-Premise: Carbonates segment larger and currently performing better
Licensed On-Premise: Carbonates segment larger and currently performing better Licensed On-Premise by Retail Value Sales (£2.4 billion) 07-09 YOY CAGR Stills (0.7)% (0.0)% Still Juice Drinks (1.3)% (1.9)% Squash 1.5 % 4.6 % Pure Juice Mixers (0.5)% 2.4 % Pure Juice Other 3.0 % 0.2 % Plain Water (7.7
Slide 29: Ireland Market Volumes and Growth Rates
Ireland Market Volumes and Growth Rates Full Year -1.2% -8.1% Carbs 1.0% -6.4% -6.1% -2.1% -5.0% Stills 1.0% -10.8% -1.2% -18.7% Volume (‘000s litres) Market Volumes Down Over 4%, With Value Down 8% 28 Source: ACNielsen Scantrack 52 weeks to Oct 4th 2009: ROI Grocery
Slide 30: Irish Market Volume
Irish Market Volume Continuing Caution On The Market Outlook 29 Source: ACNielsen Scantrack: ROI Grocery
Slide 31: Channels to Market in GB
Channels to Market in GB 3 main channels to market: Take Home (£6.1bn) (1) • Customers include large grocery retailers, (primarily Tesco, J Sainsbury, Asda, Wm Morrison), high street stores (for example, WHSmith), ‘‘impulse’’ channel retailers (convenience stores, garage forecourt sales and off-lice