Artisanal Spirits Company PLC · LSE:ART
Artisanal Spirits — The Artisanal Spirits Company — H1 2023 Earnings Presentation
36 slides from Artisanal Spirits's earnings presentation, September 2023
Slide 1: The Artisanal Spirits Company Plc H1-23 Results Presentation
THE ARTISANAL SPIRITS COMPANY PLC H1-23 Results Presentation – September 2023
Slide 2: Important Notice
IMPORTANT NOTICE For the purpose of this disclaimer, the “Presentation” shall mean and include these slides, all comments made by the presenter(s) of the slides and any question and answer session or discussion related to it. This Presentation has not been approved by an authorised person in accorda
Slide 3: ASC: Curators of the World's Favourite Single Cask and Limited-Edition Whisky
ASC: CURATORS OF THE WORLD’S FAVOURITE SINGLE CASK AND LIMITED-EDITION WHISKY Andrew Dane CEO Billy McCarter CFO Page 3 Artisanal Spirits Company – H1-23 Results Presentation
Slide 4: The Scotch Malt Whisky Society (SMWS)
THE SCOTCH MALT WHISKY SOCIETY (“SMWS”) Global Direct to Premium E-Commerce Limited Whisky Membership consumer edition c65% revenue Over 90% of ASP of £97 Over 80% of Typically only 100% of stock Over from across c30 revenue is D2C (exc. VAT) sales made 250 bottles required to FY28 39,000 paying cou
Slide 5: A Clear Framework for Profitable Growth
A CLEAR FRAMEWORK FOR PROFITABLE GROWTH To captivate a global community of whisky adventurers Purpose We do this by revealing the magic of our unique & outstanding whisky and the passion & expertise of our people Proposition We create and sell outstanding, limited-edition whisky & experiences around
Slide 6: FY23 Objectives Progressing Well Under the Five Strategic Pillars
FY23 OBJECTIVES PROGRESSING WELL UNDER THE FIVE STRATEGIC PILLARS Develop our Grow digital & Drive value and member Create new brands & Be the best version physical member volume of liquid proposition & new audience reach of ourselves experience consumption market reach Taiwan Subsidiary Refurbishme
Slide 7: KPIs and Financials
01 KPIS AND FINANCIALS Artisanal Spirits Company – H1-23 Results Presentation
Slide 8: Growing Revenue, Membership & Cask Value
GROWING REVENUE, MEMBERSHIP & CASK VALUE GROWTH MEMBERS CASK SPIRIT Global Revenue Members Cask Spirit – Current Value (NBV in accounts) +3.3% vs H1-22 +9% vs Jun-22 +4% vs Dec-22 H1-23 £10.2m H1-23 38,700 H1-23 £23.9m H1-22 £9.9m 2022 37,400 2022 £23.3m 2022 £21.8m 2021 33,400 2021 £20.4m 2021 £18.
Slide 9: Growing and Diversified Global Revenue
GROWING AND DIVERSIFIED GLOBAL REVENUE ASC Group Revenue H1-23 vs TAM TAM HEADLINES £m 2021 2022 H1-22 H1-23 2 TAM % 1 Growth H1-22 (£m) Rate 3 UK Venues strongest 6-month UK E-Commerce 3.5 3.7 1.6 1.5 (5%) 282 1.3% 34% performance on record UK Venues & Events 2.3 3.7 1.6 2.0 23% - - Cask Sales 0.0
Slide 10: Strong Financials Reinvesting for Further Growth
STRONG FINANCIALS REINVESTING FOR FURTHER GROWTH HEADLINES ASC GROUP P&L H1-23 vs Remain on track to deliver our £m 2021 2022 H1-22 H1-23 ambition to double revenue by 2024 H1-22 Total Revenue 18.2 21.8 9.9 10.2 3% and deliver positive EBITDA this Cost of Sales (7.0) (7.9) (3.7) (4.0) 9% year Gross
Slide 11: Strong and Well-Capitalised, Asset-Backed Balance Sheet
STRONG AND WELL-CAPITALISED, ASSET-BACKED BALANCE SHEET HEADLINES ASC Group Balance Sheet ASC Cash Flow Statement Well capitalised balance sheet with net Jun-23 vs £m FY21 FY22 Jun-23 assets of £18.7m £m Dec-21 Dec-22 Jun-23 Dec-22 Adjusted EBITDA (0.6) 0.4 (1.8) Level of net cash investment in spir
Slide 12: Pioneering Model
02 PIONEERING MODEL Artisanal Spirits Company – H1-23 Results Presentation
Slide 13: ASC: A Unique and Exciting Opportunity
ASC: A UNIQUE AND EXCITING OPPORTUNITY o Loyal, valuable and growing global membership Pioneering o Constant stream of unique, award-winning products model o Relentless focus on innovation & delivering outstanding experiences o Direct to consumer with proven data-rich e-commerce platform & digital c
Slide 14: Loyal, Valuable and Growing Global SMWS Membership
LOYAL, VALUABLE AND GROWING GLOBAL SMWS MEMBERSHIP Last Twelve Months (LTM) to June 2023 Member Lifetime Value Annual Annual LTV (£) Revenue Period End Average Expected Revenue/ Avg Contribution/ Avg Retention % (Avg £'000 Members Members Years Member (£) Member (£) Members) UK 7,156 18,161 17,815 4
Slide 15: We Operate a Hybrid Model, With Both Digital and Physical Interaction
WE OPERATE A HYBRID MODEL, WITH BOTH DIGITAL AND PHYSICAL INTERACTION Grow SMWS digital & Page 15 physical Artisanal Spirits Company – H1-23 Results Presentation experience
Slide 16: New Membership and a Bottle Product to Launch in Time for Christmas
NEW MEMBERSHIP AND A BOTTLE PRODUCT TO LAUNCH IN TIME FOR CHRISTMAS NEW MEMBER WOW FACTOR. INCREASING “LIQUID TO LIPS” FOR NEW MEMBERS. INCREASING BRAND REACH. ADDING TO THE DAY ONE VALUE PROPOSITION. OPENING UP NEW SALES CHANNEL OPPORTUNITIES. Develop the SMWS member 5.1 2023 Strategic Initiatives
Slide 17: 40-Year-Old Release
40-YEAR-OLD RELEASE • A celebration of the original moment 40 years ago that we discovered the secret to the best tasting whisky in the world. • This is one of our greatest & oldest whiskies yet • Launching mid-October with a UK RRP of £3,000 Drive value and volume of liquid Page 17 consumption
Slide 18: Long Term Global Growth Opportunity
LONG TERM GLOBAL GROWTH OPPORTUNITY Artisanal Spirits Company – H1-23 Results Presentation
Slide 19: ASC: A Unique and Exciting Opportunity
ASC: A UNIQUE AND EXCITING OPPORTUNITY o Loyal, valuable and growing global membership Pioneering o Constant stream of unique, award-winning products model o Relentless focus on innovation & delivering outstanding experiences o Direct to consumer with proven data-rich e-commerce platform & digital c
Slide 20: Significant and Growing Addressable Market Opportunities
SIGNIFICANT AND GROWING ADDRESSABLE MARKET OPPORTUNITIES Addressable Market (AM) ASC CONTINUED OPPORTUNITY 1 Market 2022 ($m) 2020-22 Growth 2022 ($m) 2022 % of AM FOR GROWTH US 2,052 33% 5.3 0.3% China 1,063 125% 6.0 0.6% ASC, through SMWS, is present in around 80% of the Ultra-Premium+ Scotch Whis
Slide 21: ASC Remains Well Positioned for Increased Premiumisation
ASC REMAINS WELL POSITIONED FOR INCREASED PREMIUMISATION Ultra-Premium & Above Spirits equates to 25% of total global spirts in 2022 (vs 13% in 2012)2 Alcohol ecommerce sales will… grow by +34% (2021- 2026) across 16 focus markets examined4. This follows value growth of +12% in 2019 and almost +43%
Slide 22: Robust Business Primed to Deliver
ROBUST BUSINESS PRIMED TO DELIVER Artisanal Spirits Company – H1-23 Results Presentation
Slide 23: ASC: A Unique and Exciting Opportunity
ASC: A UNIQUE AND EXCITING OPPORTUNITY o Loyal, valuable and growing global membership Pioneering o Constant stream of unique, award-winning products model o Relentless focus on innovation & delivering outstanding experiences o Direct to consumer with proven data-rich e-commerce platform & digital c
Slide 24: Cask Spirit Investment Strategy Driving Significant Value Generation
CASK SPIRIT INVESTMENT STRATEGY DRIVING SIGNIFICANT VALUE GENERATION SHORT TO MEDIUM TERM LONG TERM VALUE VALUE GENERATION GENERATION Investment in cask spirit driving short term and long- c£3m invested post IPO term value growth and c£3.5m invested post IPO profit generation. (All purchased Jun-22
Slide 25: Private Cask Sales Programme
PRIVATE CASK SALES PROGRAMME Private cask sales programme launched in FY23. This is an opportunity to buy a private cask Drive value and of single malt scotch whisky selected from our rare and precious high-age stocks which will be volume of liquid presented to you in a complete set of luxury, glass
Slide 26: Experienced Leadership
EXPERIENCED LEADERSHIP EXPERIENCED BOARD & MANAGEMENT Building on the recent installation of an experienced Plc Board, 2023 has seen strong Executive and Management Team appointments to drive the strategic priorities of ASC Plc CEO – Andrew Dane (formerly FD) CFO – Billy McCarter (formerly Group
Slide 27: Current Trading & Outlook
CURRENT TRADING & OUTLOOK Artisanal Spirits Artisanal Company Spirits – H1-23 Company Results – H1-23 Presentation Results Presentation
Slide 28: On Track to Meet 2024 Revenue Target and Deliver on Our Clear Path to Profitability
ON TRACK TO MEET 2024 REVENUE TARGET AND DELIVER ON OUR CLEAR PATH TO PROFITABILITY Current trading/Post period insights • Continued growth in membership, now above 39,000 • Successful launch of newly established SMWS Taiwan subsidiary What to expect from remainder of 2023 • Acceleration in revenue
Slide 29: Appendices
APPENDICES Artisanal Spirits Company – H1-23 Results Presentation
Slide 30: Appendices
APPENDICES 01 02 03 04 05 Glossary KPIs Awards The Board Market Data Artisanal Spirits Company – H1-23 Results Presentation 30
Slide 31: Glossary
01 | GLOSSARY A&P Advertising & Promotional Costs MPOS Mobile point of sale ASC Artisanal Spirits Company Notional retail Calculated as total litres of spirit in casks, converted to bottle value equivalent (based on 70cl) multiplied by average net CAGR Compound Annual Growth Rate revenue per bottle
Slide 32: KPIs (Prior 12 Months)
02 | KPI’S (PRIOR 12 MONTHS) Last Twelve Months (LTM) to December 2022 Member Lifetime Value Revenue* Year End Average Revenue/ Contribution1/ Retention Expected LTV3 (Avg. £m Members Members Avg. Member Avg. Member % Years2 Member) UK 6,782 18,029 17,382 390 215 80% 5.1 1,095 United States 4,353 6,
Slide 33: Awards
03 | AWARDS RECORD NUMBER OF AWARDS International Spirits Challenge 2023 A record haul of five Gold medals and one Silver in the International Spirits Challenge, which promotes outstanding quality spirits from across the globe and receives thousands of entries from over 70 countries worldwide. Scotc
Slide 34: The Board
04 | THE BOARD An experienced team with a proven track record Mark Hunter Andrew Dane Billy McCarter Paul Skipworth Non-Executive Chair Chief Executive Officer Chief Financial Officer NED & Deputy Chair Artisanal Spirits Company – H1-23 Results Presentation Page 34
Slide 35: The Board
04 | THE BOARD An experienced team with a proven track record Lesley Jackson Helen Page Gavin Hewitt CMG Mark Bedingham NED & Audit NED & Remuneration NED NED Committee Chair Committee Chair CEO of Scotch Whisky Vice Chair of ASPL (NYSE Listed); Former CFO for Stock Spirits PLC Former Chief Brand Of
Slide 36: Market Data: SMWS Global Membership
05 | MARKET DATA: SMWS GLOBAL MEMBERSHIP Artisanal Spirits Company – H1-23 Results Presentation Page 36
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