Pernod Ricard SA · EURONEXT:RI
Pernod Ricard SA — Corporate Update (December 2011)
37 slides from Pernod Ricard SA's corporate update, Dec 15, 2011
Slide 1: Americas Conference Call
Americas Conference Call Philippe Dréano Chairman & CEO December 15, 2011
Slide 2: Philippe Dréano, Chairman & CEO Pernod Ricard Americas
Philippe Dréano Chairman & CEO Pernod Ricard Americas • 1989 : joined Pernod Ricard as Marketing Manager • 1991 : Area Export Director Pernod International • 1994 : Managing Director Pernod Ricard Thailand • 1996 : President & CEO Pernod Ricard Japan • 2000 : Chairman & CEO Pernod Ricard Asia • 2009
Slide 3: Pernod Ricard Americas has been shaped by 3 big bangs in the past decade
Pernod Ricard Americas has been shaped by 3 big bangs in the past decade ... 11 x in Volume Profit from Recurring Operations 13 x in Net Sales % vs. Total PR Group Volume (M 9Lc) Net Sales (B USD) CY 2000 FY 2011 CY 2000 CY 2002 FY 2006 FY 2010 ... making the Americas the 2nd largest contributor for
Slide 4: Regional breadth with our own distribution network across the entire region
Regional breadth with our own distribution network across the entire region Pernod Ricard Americas : 7 business units 12 distribution companies 3,800 employees Travel Retail Clear competitive advantage relative to most global competitors 4
Slide 5: A unique balance of both global and local brands in each market
A unique balance of both global and local brands in each market USA Canada Mexico Brazil Key Global brands Key Local brands Local brands ensuring critical mass, Global brands delivering margin expansion 5
Slide 6: Significant step change progress on all fronts since 2008
Significant step change progress on all fronts since 2008 ... • Seamless integration of ABSOLUT, fundamentally changing our business Generated critical mass in the US market Scale changing and hot brand fueling growth in other markets Perfect portfolio complement - in the growing Vodka categor
Slide 7: Clear #2 player in the Americas with leadership positions in the future growth engines
Clear #2 player in the Americas with leadership positions in the future growth engines TOTAL AMERICAS 2 3 1 2 1 - Fastest growth key markets - 7
Slide 8: USA
RS TW Pernod Ricard USA USA
Slide 9: Slow recovery of the US economy
Slow recovery of the US economy USA … as 1.5M Americans US consumer confidence GDP growth remains return to work with 3.4M continues to be fragile… positive jobs open Consumer Jobs % Chg in GDP Confidence (In Millions) Qtr vs. PY Index 4 3.4 4.0 80 76.1 3 3.0 2.5 71.6 1.7 2.0 70 2 1.5 2.0 67.4 64.1
Slide 10: The US spirits market is large and growing
The US spirits market is large and growing USA US spirits consumption has grown … and the LDA 21+ population significantly over the past ten years … continues to grow US Consumption of Spirits Balance of Population 9L Cases US Population LDA 21 - 24 200 310 309 197.1 307 195 192.1 305 304 190 188.6
Slide 11: Spirits and Wine continue to take share from Beer
Spirits and Wine continue to take share from Beer USA Total Alcoholic Beverage Competitive Set(1) (2000 – 2010) 100% U.S. Passes France as World’s Biggest Wine- Consuming Nation 51% 50% Share of Supplier Gross Revenues 56% Bloomberg March 15, 2011 – The U.S. passed France as the world’s largest wine
Slide 12: The move towards Premiumization continues
The move towards Premiumization continues USA … with trends showing … which makes PR USA Premiumization has made consumers trading up to well positioned to gain a big come back … premium from value benefit brands … Premium Plus (>$16 RSP) Sub Premium (<$16 RSP) 7 %Chg versus Prior Year – Rolling 12
Slide 13: Positive On-Trade Channel Trends
Positive On-Trade Channel Trends USA On-Trade sales are recovering vs. … and PR USA is outperforming last year … competitors Spirits Industry On-Premise Sales PR USA Spirits On-Premise Sales (% vs. Last Year, ending Sept’11) (% vs. Last Year, ending Sept’11) +2.7% +2.6% +1.7% +1.6% +1.4% +0.0% 3 Mon
Slide 14: PR USA ideally positioned with its portfolio of strong premium brands
PR USA ideally positioned with its portfolio of strong premium brands USA Our 6 priority brands Approach • Compelling brand propositions • Different Price, Promotion, Positioning covering different consumer needs • Innovation as source of meaningful growth • Disproportionate investments behind prior
Slide 15: Brazil
Ms Pernod Ricard Brasil Brazil 15
Slide 16: Dynamic market with strong economic momentum
Dynamic market with strong economic momentum Brazil Consumer confidence Unemployment rate Robust GDP growth remains strong reaches record low Consumer Confidence GDP Evolution % vs LY ($R) Index 5.1 3.9* -0.6 June June June June June 2005 2006 2007 2008 2009 2010 2011 02 03 04 05 06 07 08 09 10 11 0
Slide 17: Very attractive demographics for Spirits
Very attractive demographics for Spirits Brazil Steady growth in Strong emergence of Very young pyramid population middle class 1% CAGR 2006-10 60% of population <34y % Population by SEL Avg. Household Population in millions Income 2010 5% 5% 5% 196 A $5,440 194 50+ 25% 28% 28% 20% B $2,093 192 35-4
Slide 18: Spirits growing driven by Vodka & Whisky
Spirits growing driven by Vodka & Whisky Brazil The Spirits industry will Spirits growth mainly driven by continue growing Vodka & Whisky Projected Spirits Industry Growth Vol CAGR 2011-15 (%) (Volume, FY 08/09 = 100) Premium+ vodka 27 CAGR +3.3% Premium+ whisky 9 117 122 Standard whisky 7 109 113 1
Slide 19: Vodka the most dynamic category with very different trends across sub-categories
Vodka the most dynamic category with very different trends across sub-categories Brazil Super Premium Standard premium USD 30-50 USD 10-20 <USD 80 Segment as % of 0.5% 7% 51% category Segment growth 39% 26% 7% (CAGR 2011-15) PR Brasil Position New 1 2 Activations Absolut drives vodka premium+, Orlof
Slide 20: Most comprehensive brand portfolio in the market to benefit from these trends
Most comprehensive brand portfolio in the market to benefit from these trends Brazil Vodka Whisky Rum Cachaça Sparkling Wine wine & Champagne >USD60 >USD50 Super premium+ Retail selling price per liter USD30-60 USD15-50 Premium (1) <USD30 <USD15 Value / (1) standard (1) Agency brand 20
Slide 21: Closing summary: leading a dynamic market
Closing summary : leading a dynamic market Brazil Brazil is a dynamic market with attractive demographic trends PR Brasil is uniquely positioned to benefit from these trends Most comprehensive brand portfolio in the market Leading position with strong shares across regions We have solid strategi
Slide 22: Mexico
% Casa Pedro Domecq Pernod Ricard Mexico 22
Slide 23: Mexican economy very reliant on the recovering of the US
Mexican economy very reliant on the recovering of the US Mexico Economy back to growth after Low inflation economy economic recession Real GDP y-o-y growth(%) 5.2 5.4 5.3 5.1 4.0 3.8 3.6 4.7 3.2 3.2 4.2 4.0 4.0 1.2 3.6 3.4 3.2 -6.1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2004 2005 2006 2007 200
Slide 24: Mexico a very attractive market with demographic trends driving spirits consumption
Mexico a very attractive market with demographic trends driving spirits consumption Mexico Women becoming key Strong population growth Very young pyramid consumption driver Population in millions 51% of population <24y 44% of Total Spirits Consumers are women 1.7% 50+ 1.2% 15% 1.4% 112 35-49 103 18%
Slide 25: Spirits market aggressively growing mainly driven by premium segments
Spirits market aggressively growing mainly driven by premium segments Mexico Spirits growing faster Spirits growth driven mainly than GDP by premium segments Spirits vs. GDP – index 2010 = 100 Spirits market size in USD billion 2.8 Spirits 133 Value / (Vol) 31% Standard GDP 2.1 (<U$20/liter) 127 2.3
Slide 26: The most comprehensive brand portfolio covering most categories and quality segments
The most comprehensive brand portfolio covering most categories and quality segments Mexico Vodka Whisky Brandy Tequila Rum Cognac Champagne Wine RTD >USD30 Super premium+ Retail selling price per 75cl bottle USD15-30 Premium <USD15 Value / standard We cover the premium+ space with strong internatio
Slide 27: Closing summary: leader in a growing market
Closing summary : leader in a growing market Mexico Mexico is and will continue being an attractive market for spirits Demographic trends are driving spirits consumption Casa Pedro Domecq is well-positioned to benefit from market trends Most comprehensive brand portfolio in the market Overall ma
Slide 28: Brand Breakthroughs
M% as Pernod Ricard Americas Brand Breakthroughs 28
Slide 29: Breakthrough in Impactful Advertising
Breakthrough in Impactful Advertising Jameson Hawk of Achill & Legendary Tales of John Jameson Absolut Blank (TVC) Absolut Outrageous (TVC & OOH) 29
Slide 30: Breakthrough in Impactful Advertising
Breakthrough in Impactful Advertising Chivas Regal Real Friends (TVC) Ballantine’s Transformation (TVC) Kahlua Delicioso (TVC) 30
Slide 31: Breakthrough in Innovation
Breakthrough in Innovation Absolut Elyx Absolut Elyx store in Toronto Soft Launch Toronto’s Imperial São Paulo Dinner Party Palace Elyx Event Absolut City Series Absolut Naturals Absolut End of Year Limited Editions 31
Slide 32: Breakthrough in Innovation
Breakthrough in Innovation Malibu Cocktails Malibu Black Malibu Snowflake Malibu Red 32
Slide 33: Breakthrough in Innovation
Breakthrough in Innovation Jameson Select Reserve Black Barrel The Glenlivet Limited edition Kahlua Cinnamon Kahlua Peppermint Spice Mocha Orloff (Brazil) 33
Slide 34: Breakthrough in Disruptive Activation
Breakthrough in Disruptive Activation Chivas 1801 Club - PR USA Malibu Station Invasion - PR USA Plano Ballantine's Tiësto - PR Brasil 34
Slide 35: Breakthrough in Digital
Breakthrough in Digital Radio Maliboom Boom Station Invasion - PR USA Ballantine’s + Tiesto - PR Brasil 35
Slide 36: Breakthrough in Digital
Breakthrough in Digital Absolut Glimmer - PR Brasil Barwise iphone App Cocktail Central with Evite.com USA 36
Slide 37: In Conclusion
In Conclusion Americas is well equipped to raise its contribution in value growth to Pernod Ricard • Attractive, leading positions in the key high growth markets • Continue our disciplined focus on value growth ... • ... and on-going pursuit of the levers that have been driving our wins Prioritize