Britvic — FY2009 Earnings Presentation
37 slides from Britvic's earnings presentation, 2009
Slide 1: 2009 Preliminary Results
\o BRITVIC 2009 Preliminary Results
Slide 2: Gerald Corbett, Chairman
Gerald Corbett pritvig Chairman
Slide 3: John Gibney, Group Finance Director
John Gibney Group Finance Director
Slide 4: 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 Note: All numbers are pre-exceptionals unless state
Slide 5: 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 6: 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 (p) FREE CASHFLOW £m CAGR 17.6% £250M in 4 years Building A Track Record of Growth And Market Outperformance Note: All numbers are pre-exceptionals unless stated otherwise
Slide 7: GB Carbonates
39% of group GB Carbonates brand39% contribution FY09 FY08 % £m £m Change Volume (million litres) 995.7 922.8 7.9 ARP per litre (pence) 41.8 40.7 2.7 Revenue 416.7 375.5 11.0 Brand contribution 151.2 143.6 5.3 Brand contribution margin 36.3% 38.2% (190)bps •Outperforming the market by over 7% •Overc
Slide 8: GB Stills
41% of group GB Stills brand contribution FY09 FY08 % £m £m Change Volume (million litres) 496.8 479.6 3.6 ARP per litre (pence) 70.5 69.1 2.0 Revenue 350.2 331.4 5.7 Brand contribution 156.5 146.7 6.7 Brand contribution margin 44.7% 44.3% 40bps •Outperforming the market by over 6% •Overcoming direc
Slide 9: International
2% of group International brand contribution FY09 FY08 % £m £m Change Volume (million litres) 28.8 26.1 10.3 ARP per litre (pence) 77.8 72.4 7.5 Revenue 22.4 18.9 18.5 Brand contribution 7.6 4.9 55.1 Brand contribution margin 33.9% 25.9% 800bps •Another year of double-digit revenue growth •Mix drivi
Slide 10: Ireland
18% of group Ireland brand contribution FY09 FY08 % £m £m Change Volume (million litres) 226.1 253.1 (10.7) ARP per litre (pence) 62.2 56.9 9.3 Total revenue 189.5 200.7 (5.6) Brand contribution 70.8 70.2 0.9 Brand contribution margin 37.4% 35.0% 240bps EBITA 13.9 16.2 (14.2) EBIT 12.2 14.7 (17.0) E
Slide 11: Fixed Costs
Fixed Costs FY09 FY08 % £m £m change Non-brand A&P 8.1 7.7 (5.2) Fixed supply chain 87.1 92.9 6.2 Selling costs 102.5 101.5 (1.0) Overheads & other 78.3 66.6 (17.6) Total A&P spend 52.5 54.6 3.8 A&P as a % of revenue 5.6% 6.3% (70)bps Effective Cost Management And Targeted A&P Investment Note: All n
Slide 12: EBIT to Earnings
EBIT to Earnings FY09 FY08 % £m £m change EBIT 110.1 96.7 13.9 Interest (23.6) (26.6) 11.3 Profit before tax 86.5 70.1 23.4 Tax (22.3) (17.1) (30.4) Effective tax rate 25.8% 24.4% (1.4)pts Profit after tax 64.2 53.0 21.1 Continued Leverage Down To Earnings Note: All numbers are pre-exceptionals unle
Slide 13: Exceptional Items
Exceptional Items FY09 £’m Ireland restructuring 15.0 Implementation of group structure 3.0 Transitional share awards 0.8 Other 1.5 Total exceptional items 20.3 Total exceptional items after tax 17.4 Restructuring Our Group
Slide 14: 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 15: 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% • Plus a further • Full-year ARP • PVO programme €5m for benefit fro
Slide 16: Summary
Summary Top-Line-Driven Earnings Up By Over 20% Final Dividend Increases By 24% A Consistent Strategy Will Drive Further Strong Growth Another Year of Increased Shareholder Returns
Slide 17: Paul Moody, Chief Executive
Paul Moody pritvit Chief Executive
Slide 18: GB Soft Drinks Market Volume
GB Soft Drinks Market Volume A Market That Improved As The Year Went On Source: ACNielsen Scantrack Sept 2009: Take Home
Slide 19: 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 Source: AC N
Slide 20: GB Market Volumes and Growth Rates (Most Recent Weeks)
GB Market Volumes and Growth Rates Most Recent 12 Weeks -0.5% 1.6% 1.4% -13.2% 0.3% -4.1% -6.2% 2.4% -1.9% 11.9% 11.2% -2.6% 3.9% 1.8% 4.3% 0.9% 2.3% -2.6% 7.0% 0.9% -0.9% 0.4% -9.7% 8.4% 3.6% -12.2% 16.4% 9.0% 8.4% 5.6% -13.5% -20.6% Volumes Up 1.7%, With Stills Driving The Growth Source: AC Neilse
Slide 21: Irish Market Volume
Irish Market Volume Continuing Caution On The Market Outlook Source: ACNielsen Scantrack: ROI Grocery
Slide 22: Ireland Market Volumes and Growth Rates: Full Year
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% Source: ACNielsen Scantrack 52 weeks to Oct 4th 2009: ROI Grocery
Slide 23: Ireland Market Volumes and Growth Rates: Most Recent Weeks
Ireland Market Volumes and Growth Rates Most Recent 12 Weeks -3.4% -7.1% Carbs 2.1% -0.9% -7.8% 2.1% -3.1% Stills 7.6% -6.0% 22.7% -23.3% Volume (‘000s litres) Volume Decline Has Eased But Value Performance Has Worsened Source: ACNielsen Scantrack 12 weeks to Oct 4th 2009: ROI Grocery
Slide 24: 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 25: 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 •The biggest soft •The number 1 kids
Slide 26: Innovation Expected To Continue Adding 1-2% To GB Revenue
Innovation Expected To Continue Adding 1-2% To GB Revenue In Every Full Year New Brands Brand Extensions Pack & Experience Revenue Growth With An Improving Mix
Slide 27: Brand Solutions Driven By Category Insight
Brand Solutions Driven By Category Insight Effective Marketing Step-Changed In-Store Execution Driving Outperformance In The Market
Slide 28: 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 Organic Growth Drivers
Slide 29: 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
Slide 30: In Summary
In Summary GB Market Showing Early Signs Of Improvement Through-The-Line Execution Continues To Drive Outperformance Margin Ambition Reflects Our Strong Track Record Delivering On A Growth Agenda
Slide 31: Preliminary Results
\o BRITVIC 2009 Preliminary Results
Slide 32: Appendix
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Slide 33: GB Carbonates Market Volume
GB Carbonates Market Volume Source: ACNielsen Scantrack Sept 2009: Take Home
Slide 34: GB Stills Market Volume
GB Stills Market Volume BRITVIC Volume (‘000s litres) 100,000 80,000 60,000 40,000 - 4 Yo GB GY YG YG LEY YE QD YD OLE CO CO OC OC OC OC LQ PL So 9) OS Oe 96 Oe COR ome ..9O7 98° ,~O LS 8 BB 49 4 x . ant Na oY Ws oo - Si $9 is & S . S . SS SF woe EEEEEEE CEE EE CEC EES ~ 2006/07 -—-2007/08 2008/09
Slide 35: Strong Market Positions
Strong 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
Slide 36: 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 37: Licensed On-Premise: Carbonates segment larger and 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