Britvic — Non-Deal Roadshow (December 2010)
33 slides from Britvic's roadshow presentation, December 2010
Slide 1: Investor Roadshow
Investor Roadshow December 2010 1
Slide 2: A Spreading Geography
A Spreading Geography OPERATING TERRITORIES KEY EXPORT MARKETS 2
Slide 3: A Strategy For Growth
A Strategy For Growth Market Volume Growth 2-3% Developing Cold-Drink Organic Distribution Innovation Adding Growth 1-2% Average Realised Price c.1%+ M&A: Europe International Britvic International: Export Expansion Outside Europe: Licensing and Franchising 3
Slide 4: The Britvic Investment Case
The Britvic Investment Case Britvic is a leading European branded soft drinks business STRONG MARKET POSITIONS A POWERFUL EUROPEAN BRAND PORTFOLIO •#2 in British branded soft drinks •#1 or #2 brands in the key categories •#2 in Irish branded soft drinks •Barriers to entry for entrants looking to •#1
Slide 5: A Strengthening Track Record
A Strengthening Track Record GB/INT’L REVENUE GB/INT’L EBITA 6.4% CAGR 12.5% CAGR UNDERLYING FREE ADJUSTED EPS CASHFLOW 17.9% CAGR £318M IN 5 YEARS Note: All numbers are pre-exceptionals unless stated otherwise. Adjusted EPS is calculated on a constant-currency basis and is adjusted for amortisation
Slide 6: Channels To Market In GB
Channels To Market In GB Grocery Pubs & Clubs Impulse Food Service z Retail value z Retail value z Retail value z Retail value £5.0bn £2.8bn £1.5bn £2.2bn z Britvic share z Britvic share z Britvic share z Britvic share 12.8% 40.9% 9.6% 10.2% z Gaining share z Retaining z Strategy z Strategy through
Slide 7: GB Activity In 2011
GB Activity In 2011 Oct - Dec Jan - Mar April - June July - Sept Taste The Moment Taste The Moment Portfolio Reward Your Thirst – Launch: Nov - Feb Reward Your Thirst – Refresh: April - July Juicy Extra-Free Pack Gatorade Re-brand Pepsi Music On Pack Robinsons' Mountain Dew TTL KOPG On-pack Wimbledo
Slide 8: Brand relaunch and investment (Gatorade)
Brand Relaunch Packaging Major A&P New Flavour Redesign Investment ..used by the best Olympians in the World… ...because we are the original, the most researched and the most credible PepsiCo Confidential 8
Slide 9: Britvic France In 2011
Britvic France In 2011 Building Further The Capability Innovation Launch Of To Market Fruit Shoot 9
Slide 10: Britvic Ireland In 2011
Britvic Ireland In 2011 A Right- Sized Medium- Focused Business Term Innovation Brand And Product Model Confidence Investment Launches 10
Slide 11: Innovation Across The Group In 2011
Innovation Across The Group In 2011 11
Slide 12: Britvic International – The Global Spread of Fruit Shoot
Britvic International – The Global Spread of Fruit Shoot z A national launch – the two largest retailers, Cole’s and Woolworth’s z Sales already commenced – November 2010 z Ambition – to be a leading category brand 12
Slide 13: Britvic International – The Global Spread of Fruit Shoot
Britvic International – The Global Spread of Fruit Shoot z Buffalo Rock and Britvic - a successful partnership z Exciting further trialling with other independent PepsiCo partners o – up the Eastern Seaboard z Building a global presence – our wholly-owned brands 13
Slide 14: Financial Headlines
Financial Headlines Underlying Revenue up 5.9% Underlying EBITA up 10.8% Exceptional and Other Items of £137.9m Adjusted EPS up 18.1% Underlying Free Cashflow of £67.8m Note: underlying revenue and EBITA are 52 weeks and before exceptional and other items and exclude first-time impact of France Unde
Slide 15: Like-For-Like Underlying Performance
Like-For-Like Underlying Performance FY10 FY09 % £m £m Change Revenue 1,035.9 978.5 5.9 EBITA 131.1 118.3 10.8 EBIT 122.3 109.7 11.5 EBIT Margin 11.8% 11.2% 60bps Profit After Tax 73.2 63.8 14.7 Note: All numbers are before exceptional and other items. P&L items are shown on a constant-currency basi
Slide 16: Cash flow
Cash flow FY10 FY09 % £m £m change 53 weeks 52 weeks Depreciation & Amortisation 44.3 40.4 (9.7) EBITDA 178.9 150.5 18.9 Working Capital (11.1) 13.8 - Capital Expenditure (45.3) (40.1) (13.0) Pension (13.2) (10.0) (32.0) Other (41.5) (44.5) 6.7 Underlying Free Cash flow 67.8 69.7 (2.7) Dividends (34
Slide 17: Summary
Summary Challenging Macro Conditions With Resilient Markets Well-Invested Brands And Innovations A Strong 2011 Programme A Balanced Strategy Delivering Quality Earnings Growth 17
Slide 18: Appendix
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Slide 19: The ADR Programme
The ADR Programme Britvic’s ADR shares trade on the US ADR Benefits to over-the-counter market under the US Investors: following information: z ADRs give access to Symbol BTVCY cross-border market CUSIP 111190104 liquidity z ADRs are cost-effective Ratio 1 ADR : 2 ORD Country UK z ADRs are convenien
Slide 20: The Evolving GB On-The-Go Portfolio
The Evolving GB On-The-Go Portfolio 2005 2010 20
Slide 21: The 2010 GB Innovation Programme
The 2010 GB Innovation Programme New Brand Pack & Brands Extensions Experience 21
Slide 22: Fruit Shoot – Driving French Synergies
Fruit Shoot – Driving French Synergies Y1: Strong Total Market Volumes 70m In-Store Litres Support & Start of TV Campaign Specific Teisseire French Endorsement Formulations - Reassuring Mum 22
Slide 23: Britvic Ireland: Mountain Dew Energy
Britvic Ireland: Mountain Dew Energy n Driving Availability Quality distribution of 500ml o Unavoidable Visibility PET in the right channels Impact Feature & POS to win @ POP p Sampling Campaign Increases across Brand Awareness & Buzz/Excitement among target audience
Slide 24: Britvic Ireland: Juicy Drench
Britvic Ireland: Juicy Drench Jan - Feb Mar - Apr May-Jun Jul-Aug Sep Oct 2011 2011 2011 2011 2011 2012 Innovation Launch 1.25L Engagement Relevance 24
Slide 25: Debt Structure
Debt Structure Facility Drawing Headroom Maturities Size (£m) (£m) (£m) Bank Loans 333.3 2012 126.3 207.0 US PP 2014, 2017, 228.5 228.5 - Issued 2007 2019 US PP 2014, 2016 149.8 149.8 - Issued 2009 2017, 2019 (Cash)/ - - (53.4) 53.4 Overdraft/Other SUB-TOTAL 711.6 - 451.2 260.4 US PP 113.0 2017 to 2
Slide 26: Debt Repayment Profile
Debt Repayment Profile £m Revolver USPP 26
Slide 27: Guidance – 2011
Guidance – 2011 Revenue Costs & Capex Margins •Innovation adds 1-2% •Raw-material Inflation •Average annual likely to be 5-6% EBITA margin growth •Medium-term growth drivers remain robust •Further group-structure of 50 bps investment of £2m •53rd week was a one-off •H1 2011 likely to be benefit for
Slide 28: GB Market Growth Rates
CARBS GB Market Growth Rates TOTAL MARKET VALUE GROWTH + 6.3% TOTAL MARKET VOLUME GROWTH + 2.3% STILLS 47.9% 67.5% 28
Slide 29: GB Market Volumes
GB Market Volumes 000s LITRES 190,000 2007/08 180,000 2008/09 2009/10 170,000 160,000 150,000 140,000 130,000 120,000 110,000 WE WE WE WE WE WE WE WE WE WE WE WE WE 10.10.09 07.11.09 05.12.09 02.01.10 30.01.10 27.02.10 27.03.10 24.04.10 22.05.10 19.06.10 17.07.10 14.08.10 11.09.10 29 Source: Nielsen
Slide 30: Irish Market Growth Rates
Irish Market Growth Rates TOTAL MARKET VALUE DECLINE (5.4%) CARBS TOTAL MARKET VOLUME GROWTH + 4.3% STILLS Source: Nielsen Scantrack 52 weeks to Oct 3rd 2010: ROI Grocery 30
Slide 31: Irish Market Volumes
Irish Market Volumes 2007/08 000s LITRES 2008/09 2009/10 31 Source: Nielsen Scantrack Sept 2009: Take Home
Slide 32: French Market Growth Rates
CARBS French Market Growth Rates TOTAL MARKET VALUE GROWTH + 3.8% TOTAL MARKET VOLUME GROWTH + 2.2% STILLS 32
Slide 33: French Market Volumes
French Market Volumes 000s LITRES 2007/08 1000 2008/09 1,000,000 2009/10 750 750,000 500 500,000 Oct Nov Dec Jan Feb Mar Apr May Ju n Ju l Aug Sept 33