Pernod Ricard SA · EURONEXT:RI
Pernod Ricard SA — FY2012 Earnings Presentation
90 slides from Pernod Ricard SA's earnings presentation, Aug 30, 2012
Slide 1: 2011/12 Full-Year Sales and Results
2011/12 Full-Year Sales and Results 30 August 2012 This presentation can be downloaded from our website:: www.pernod-ricard.com Audit procedures on the consolidated financial statements have been carried out. The Statutory Auditors’ report will be issued following their review of the management repo
Slide 2: Tribute to Patrick Ricard
Tribute to Patrick Ricard “Everything has changed since the beginning. Everything will continue to change in the future, but the key factors of success will remain the same: a long- term vision, which alone enables us to build over time, together with decentralisation and conviviality.” “We are all
Slide 3: Presentation Structure
Presentation Structure - Overall analysis - Sales analysis - Profit from recurring operations - Group share of Net Profit from Recurring Operations - Net profit - Conclusion and outlook - Appendices 3
Slide 4: Guidance exceeded
Guidance exceeded 2011/12 Reminder: Performance 2011/12 guidance Accelerated Profit from recurring operations Close to vs. growth +9%(1) +8%(1) Continued Net debt(2)/ EBITDA(2) Close to vs. 3.9 debt reduction 3.8 (1) Organic growth (2) At 30 June 2012, converted at average exchange rates, syndicated
Slide 5: Best growth since 2007/08
Best growth since 2007/08 TOP 14 +10%(1) Sales € 8,215 m +8%(1) TOTAL Emerging(2) +17%(1) Mature +2%(1) reported growth: +7% PRO € 2,114 m +9%(1) reported growth: +11% Group share of NPRO € 1,201 m +10% Operating margin (PRO / Sales) 25.7% +75 bps Improved by Net debt(3) EBITDA(3) 3.8 -0.6 (1) Organ
Slide 6: Presentation Structure
Presentation Structure - Overall analysis - Sales analysis - Profit from recurring operations - Group share of Net Profit from Recurring Operations - Net profit - Conclusion and outlook - Appendices 6
Slide 7: Change in FY 2011/12 sales
Change in FY 2011/12 sales Sales growth to 30 June 2012 (12 months): +7% +581 (59) +51 (€ millions) +1% -1% Turned positive in Q4 +8% 8,215 7,643 FY 2010/11 Organic growth Group structure Forex impact FY 2011/12 Organic growth: +8% (Spirits +9%, Wines +3%) Limited group structure effect (primarily r
Slide 8: Sales: focus on Q4
Sales: focus on Q4 Sales growth for the 4th quarter of 2011/12 (3 months): +9% +101 (€ millions) (18) +77 +4% -1% +6% 1,901 1,741 Turned positive in Q4 Q4 2010/11 Organic growth Group structure Forex impact Q4 2011/12 Excluding technical effects (French destocking), Q4 organic growth is +7% Limited
Slide 9: Phasing of sales growth
Phasing of sales growth 2011/12 vs. 2010/11 HY1 Q3 Q4 HY2 FY Organic sales growth +11% +3% +4% +4% +8% Organic sales growth (1) +8% +8% +7% +8% +8% excluding technical effects Excluding technical effects(1), the pace of sales growth was steady throughout the financial year (1) French pre-buying and
Slide 10: Presentation Structure
Presentation Structure - Overall analysis - Sales analysis - By geographic region - By brand - Marketing initiatives and innovation - Profit from recurring operations - Group share of Net Profit from Recurring Operations - Net profit - Conclusion and outlook - Appendices 10
Slide 11: Accelerated growth vs. 2010/11
Accelerated growth vs. 2010/11 Organic sales growth % of FY FY total Comments by region sales 2010/11 2011/12 Asia-RoW 39% +15% +15% Continued strong momentum (1) Americas 26% +5% +6% Growth driven by Premium brands Europe Acceleration in the East, offsetting the (excluding France) 26% 0% +2% declin
Slide 12: Asia - Rest of the World
ASIA - REST OF THE WORLD Continued strong momentum Analysis by category FY FY Organic (€ millions) ∆ 2010/11 2011/12 ∆ SALES 2,711 3,165 +17% +15% Martell (+29%(1)): still the main growth driver. Milestone of 1 million cases exceeded in China Top 14 Scotch whiskies (+13%(1)): volume growth and conti
Slide 13: Asia - Rest of the World: analysis by market
ASIA - REST OF THE WORLD Continued strong momentum Analysis by market China: Continued buoyant growth (+24%(1), in line with the rest of the financial year), driven by Martell, Scotch whiskies, champagne and Jacob’s Creek India: local whiskies (+26%(1)); acceleration of Top 14 (+33%(1)) driven by Ch
Slide 14: Asia - Rest of the World: analysis by market
ASIA - REST OF THE WORLD Continued strong momentum Analysis by market Travel Retail: continued buoyancy (+23%(1)), driven by premiumisation South Korea (-2%(1)): overall market decline due to local whiskies in the traditional on-trade, particularly affecting Imperial (-6%(1)). Strong performance of
Slide 15: Americas
AMERICAS Growth driven by Premium brands Analysis by category FY FY Organic (€ millions) ∆ 2010/11 2011/12 ∆ SALES 2,068 2,167 +5% +6% Top 14 (+5%(1)): +7%(1) excluding Mexico • Jameson, Malibu, The Glenlivet and Perrier-Jouët in the US • Absolut, Chivas and Ballantine’s in Brazil • Chivas and Absol
Slide 16: Americas: United States
AMERICAS United States Analysis by market Continued strong organic sales growth (+5%(1) vs. +2%(1) in FY 2010/11). Top 14 +6%(1) Absolut: Improved performance in HY2. Numerous initiatives already launched or planned. Full-year depletions +1.4% Jameson (+29%(1)): still the main growth driver Signific
Slide 17: Americas: Other markets
AMERICAS Other markets Analysis by market Brazil: • Strong growth (+13%(1)) driven by Top 14 (+26%(1)), essentially Absolut and Scotch whiskies • Strong performance of Passport (+24%(1)) and Orloff (+9%(1)) Canada: • Sustained growth (+7%(1)) particularly of Jameson and Malibu • Strong growth(1) of
Slide 18: Europe (excluding France)
EUROPE (EXCLUDING FRANCE) Increased bipolarisation of East and West Analysis by category FY FY Organic (€ millions) ∆ 2010/11 2011/12 ∆ SALES 2,114 2,137 +1% +2% Top 14: main growth driver (+4%(1)), led by Jameson, Chivas, Beefeater The Glenlivet and Absolut. Decline of Ballantine’s in Spain and Hav
Slide 19: Europe (excluding France): analysis by market
EUROPE (EXCLUDING FRANCE) Increased bipolarisation between East and West Analysis by market Eastern Europe: strong acceleration of growth (+16%(1) vs. +9%(1) in 2010/11) • Russia: main contributing market to growth (+28%(1), Top 14: +31%(1)) driven by Jameson, Chivas, ArArAt, Olmeca and Ballantine’s
Slide 20: France
FRANCE Market decline due to increase in excise duty Analysis by category FY FY Organic (€ millions) ∆ 2010/11 2011/12 ∆ SALES 750 746 -1% -1% Excise duty hike (+14% on average) on spirits as of 1 January 2012, which resulted in: • Pre-buying in HY1 • Contraction of the market in HY2 (Nielsen -2% si
Slide 21: Presentation Structure
Presentation Structure - Overall analysis - Sales analysis - By geographic region - By brand - Marketing initiatives and innovation - Profit from recurring operations - Group share of Net Profit from Recurring Operations - Net profit - Conclusion and outlook - Appendices 21
Slide 22: Growth driven by the Top 14
Growth driven by the Top 14 % of Organic sales growth total FY FY (1) (1) by category sales 2010/11 2011/12 Top 14 Spirits & Champagnes 60% +10% +10% Priority Premium Wines 5% 0% +4% 18 Key Local Brands 18% +3% +8% Other 17% +1% +2% Total 100% +7% +8% Premium(2) brands represent 73% of sales vs. 71%
Slide 23: Top 14: strong growth with significant price/mix
Top 14: strong growth with significant price/mix TOP 14 Spirits & Champagnes Volume: +3% Sales: +10%(1) % of Group sales: 60% (1) Organic growth 23
Slide 24: Top 14: strong growth with significant price/mix
Top 14: strong growth with significant price/mix TOP 14 All-time record volume Total Sales of which of which Spirits & Champagnes(1) volume(2) growth(3) volume price/mix(3) for the Top 14 Absolut 11.4 3% 3% 0% Chivas Regal 4.9 11% 7% 4% Ballantine’s 6.2 0% -1% 2% Six brands reported Ricard 5.2 -3% -
Slide 25: Iconic Brands
Iconic Brands Volume growth +3% (sales +3%(1)) spread over all regions US: Improved trend in HY2. Launch of Absolut Gräpevine and Absolut Miami and new Absolut Greyhound campaign in HY2 Strong growth(1) in Brazil, Africa/Middle East, Germany, South Korea, Russia, France, India and Thailand (1) +3% S
Slide 26: Premium Brands (1/2)
Premium Brands (1/2) Growth generated by superior qualities Strong development in Eastern Europe: Russia (+51%(1)), Poland (+11%(1)), Ukraine (+42%(1)) ; and Latin America: Brazil (+19%(1)) (1) stable Sharp decline in Spain in a very difficult Scotch category Decline in France (-3%(1)) due to the ex
Slide 27: Premium Brands (2/2)
Premium Brands (2/2) Successful reinvigoration of the brand with growth driven by innovation (Malibu cocktails, Malibu Black, Malibu Red in Q3) Excellent performance in the US (+10%(1)) Solid performance in Germany (+9%(1)) and Canada (+8%(1)) (1) Double-digit growth in Russia +4% Sustained growth o
Slide 28: Prestige Brands
Prestige Brands Remarkable year driven by Chinese Asia Highly favourable price/mix (+16%(1)), with a very good mix/quality (XO +39%(1), Noblige +29%(1)) and successful launch of Chanteloup Perspective (1) +25% Strong development in Russia (+10%(1)) and Africa/Middle East (+23%(1)) Very strong perfor
Slide 29: Priority Premium Wines
Priority Premium Wines: continuation of high-value strategy and geographic diversification Priority Premium Wines Volume -1% Sales +2%(1) Volume +5% Sales +2%(1) Volume: +2% Sales: +4%(1) (2) Contribution +10%(1) % of Group sales: 5% Volume +9% Sales +11%(1) Volume +3% Sales +28%(1) (1) Organic grow
Slide 30: 18 Key Local Brands
18 Key Local Brands: accelerated growth, +8%(1) vs. +3%(1) in 2010/11 18 Key local Brands Volume: +10% Sales: +8%(1) % of Group sales: 18% Continued dynamism of Indian whiskies (+26%(1)) Royal Stag, Blender's Pride, Imperial Blue, with improved price/mix (launch of Royal Stag Barrel Select and Blend
Slide 31: Presentation Structure
Presentation Structure - Overall analysis - Sales analysis - By geographic region - By brand - Marketing initiatives and innovation - Profit from recurring operations - Group share of Net Profit from Recurring Operations - Net profit - Conclusion and outlook - Appendices 31
Slide 32: Building desire
Building desire Innovative & Strengthen the link with the artistic Continuous through-the-line sophisticated community communication flavours strategy Partnership with dOCUMENTA and Art Basel 20M online viewers of Drinks 2.0, driven by ABSOLUT GREYHOUND and still growing ABSOLUT CHERRYKRAN Unique fl
Slide 33: Taking advantage of a remarkable year for London
Taking advantage of a remarkable year for London Beefeater Hidden Gems Guide to London’s “Hidden Gems,” including the Beefeater Distillery Beefeater 24 “Inspired” new advertising Inside London Limited Edition Commemorating a truly remarkable year for London 33
Slide 34: Nothing compares to Havana
Nothing compares to Havana 7 Days in Havana Effective advertising Only spirit brand finalist in 2012 at European advertising award for creativity and business results Havana Cultura promotes Cuban culture Film produced with the support of Havana Club In situ with On-line on the Visual Arts Project &
Slide 35: Jameson: a great story!
Jameson: a great story! Jameson First Shot featuring Kevin Spacey Local premieres took place in each winner’s home country (South Africa, Russia and USA) To date the films have received over 5.5 million views on You Tube www.youtube.com/james onwhiskey Legendary Tales of John Jameson supported TV Ca
Slide 36: Wines of character
Wines of character Jacob’s Creek: ‘Open’ feat. André Agassi Campo Viejo Andre Agassi brings to life the TRUE CHARACTER message of Jacob’s Creek “Live uncorked” campaign 2 leading international Graffigna advertising industry awards: Silver Pencil Bronze Lion “G is for Malbec” campaign 36
Slide 37: Creating a world of luxury
Creating a world of luxury Martell Cordon Bleu Centenary Dedicated print advertising Royal Salute Jubilee activity Perrier-Jouët Belle Epoque Florale Edition Historic partnership with the in collaboration with Japanese floral Tower of London to celebrate the artist Azuma Makoto. Queen’s Diamond Jubi
Slide 38: Tapping into the new aperitif trends
Tapping into the new aperitif trends Ricard Ramazzotti Aperitivo Café de Paris Soho Mix Suze 3 new SKUs Bitter Suze flavoured Suze for beer Rosé Organic Exotic, Fresh and Sweet Orange Spritz 38
Slide 39: Extend our brands into new consumption occasions
Extend our brands into new consumption occasions Kahlúa Coffee Cans Ritual by Havana Club “party time” occasion Jacob’s Creek Cool Harvest “on the go” occasion “girls get together” occasion 39
Slide 40: Presentation Structure
Presentation Structure - Overall analysis - Sales analysis - Profit from recurring operations - Summary income statement - Analysis by geographic region - Group share of Net Profit from Recurring Operations* - Net profit - Conclusion and outlook - Appendices 40
Slide 41: Summary income statement
Summary income statement FY FY Organic (€ millions) 10/11 11/12 ∆ ∆ Sales 7,643 8,215 +7% +8% Gross margin after logistics costs (GM) 4,610 5,047 +9% +8% GM / Sales 60.3% 61.4% Advertising and promotion expenditure (A&P) (1,441) (1,571) +9% +7% A&P / Sales 18.9% 19.1% Contribution after A&P expendit
Slide 42: Forex and Group structure effects on PRO
Forex and Group structure effects on PRO (€ millions) +174 (15) +47 +2% -1% +9% 2,114 1,909 +11% PRO FY 2010/11 Organic growth Group structure Forex impact PRO FY 2011/12 Organic growth is main contributor to PRO increase of +11% Positive forex impact primarily due to stronger CNY and USD 42
Slide 43: Gross margin after logistics costs
Gross margin after logistics costs (€ millions) FY 10/11 variation FY 11/12 Gross margin after logistics costs 4,610 +8%(1) 5,047 GM / Sales 60.3% 61.4% +111 bps Significant improvement in gross margin rate, +111 bps: • Portfolio mix (growth in Top 14 sales higher than Group growth) and favourable q
Slide 44: Advertising and promotion expenditure
Advertising and promotion expenditure (€ millions) FY 10/11 variation FY 11/12 A&P expenditure (1,441) +7%(1) (1,571) A&P / Sales 18.9% 19.1% +26 bps Slight increase in A&P / Sales ratio: strong growth of the Top 14 (higher ratio than the Group average) which receives ¾ of A&P expenditure Increase i
Slide 45: Structure costs
Structure costs (€ millions) FY 10/11 variation FY 11/12 Structure costs(1) (1,260) +8%(2) (1,362) Structure costs / Sales 16.5% 16.6% +9 bps Increase in resources allocated to emerging markets • Emerging markets account for 63% of growth • Strengthened distribution network: China (+31%(2)), India (
Slide 46: Profit from recurring operations
Profit from recurring operations (€ millions) FY 10/11 variation FY 11/12 Profit from recurring operations 1,909 +9%(1) 2,114 PRO / Sales 25.0% 25.7% +75 bps Significant increase in operating margin (+75 bps), thanks to: • Premiumisation, which improved the gross margin • Control over resources: Adv
Slide 47: Presentation Structure
Presentation Structure - Overall analysis - Sales analysis - Profit from recurring operations - Summary income statement - Analysis by geographic region - Group share of Net Profit in Recurring Operations - Net profit - Conclusion and outlook - Appendices 47
Slide 48: Contribution to PRO growth by region
Contribution to PRO growth(1) by region (€ millions) 143 20 17 (6) -3% +4% +4% 2,082 1,909 +21% PRO FY 2010/11 Asia & RoW Americas Europe excl. France PRO FY France 2011/12* Except for France (adversely affected by excise duty hike), all regions contributed to organic growth in Profit from Recurring
Slide 49: Asia - Rest of World
Asia - Rest of World FY FY Organic (€ millions) 10/11 11/12 ∆ ∆ Sales(1) 2,711 3,165 +17% +15% Gross margin after logistics costs 1,559 1,898 +22% +17% GM / Sales 57.5% 60.0% Advertising and promotion expenditure (531) (625) +18% +15% A&P / Sales 19.6% 19.8% Profit from recurring operations(2) 684 8
Slide 50: Americas
Americas FY FY Organic (€ millions) 10/11 11/12 ∆ ∆ Sales 2,068 2,167 +5% +6% Gross margin after logistics costs 1,277 1,362 +7% +6% GM / Sales 61.7% 62.9% Advertising and promotion expenditure (379) (405) +7% +5% A&P / Sales 18.3% 18.7% Profit from recurring operations(1) 558 582 +4% +4% PRO / Sale
Slide 51: Europe (excluding France)
Europe (excluding France) FY FY Organic (€ millions) 10/11 11/12 ∆ ∆ Sales 2,114 2,137 +1% +2% Gross margin after logistics costs 1,228 1,245 +1% +4% GM / Sales 58.1% 58.3% Advertising and promotion expenditure (343) (347) +1% +2% A&P / Sales 16.2% 16.3% Profit from recurring operations(1) 479 470 -
Slide 52: France
France FY FY Organic (€ millions) 10/11 11/12 ∆ ∆ Sales 750 746 -1% -1% Gross margin after logistics costs 546 541 -1% -1% GM / Sales 72.7% 72.5% Advertising and promotion expenditure (189) (193) +2% +2% A&P / Sales 25.2% 25.9% Profit from recurring operations(1) 189 181 -4% -3% PRO / Sales 25.1% 24
Slide 53: Analysis by geographic region
Analysis by geographic region FY 2010/11 FY 2011/12(1) 10% 9% 35% 39% Sales 28% 26% 27% 26% HY1 10/11 HY1 11/12 Profit from 10% 9% 36% 22% 42% recurring 25% operations 29% 28% Asia-RoW America Europe (excl. France) France Asia-RoW further strengthened its status as the Group’s largest contributor to
Slide 54: Share of emerging markets
Share of emerging markets Increase in relative significance of emerging markets FY 2010/11 FY 2011/12 Sales 37% 40% Europe 63% 60% 60% 40% Americas Asia-RoW FY 2010/11 FY 2011/12 PRO 38% 39% 62% 61% Emerging markets (1) Mature markets (1) List of emerging markets available in the appendix (2) Organi
Slide 55: Presentation Structure
Presentation Structure - Overall analysis - Sales analysis - Profit from recurring operations - Group share of Net Profit from Recurring Operations - Net profit - Conclusion and outlook - Appendices 55
Slide 56: Financial income (expense) from recurring operations
Financial income (expense) from recurring operations (€ millions) FY 10/11 FY 11/12 Financial income (expense) from recurring (469) (509) operations Cost of debt 4.7% 5.1% Pernod Ricard has delivered on all the objectives of its financing strategy (particularly on debt refinancing), resulting in a c
Slide 57: Cash flow statement (1/2)
Cash flow statement (1/2) (€ millions) FY 10/11 FY 11/12 ∆ Profit from recurring operations 1,909 2,114 205 Amortization, depreciation and provision movements and other 174 163 (11) Self-financing capacity from recurring operations 2,083 2,277 194 Decrease/(increase) in strategic stocks(1) (85) (157
Slide 58: Cash flow statement (2/2)
Cash flow statement (2/2) Significant increase in Self-Financing Capacity… • thanks to growth in profit from recurring operations … reinvested behind our strategic assets to support future growth: • acceleration of growth of strategic inventories (+€ 157m vs. +€ 85m en 2010/11): cognac, whiskies and
Slide 59: Change in Net Debt
Change in Net Debt (€ million) 9,500 710 (955) 411 8,500 159(1) 9,363 9,038 8,653 € (385) million 7,500 Net Debt Free Cash Flow Disposals, acquisitions Dividends Net debt Translation adjustment Net Debt at 30 June 2011 of shares and other at 30 June 2012 at 30 June 2012 before translation adjustment
Slide 60: Change in Net Debt/EBITDA ratio
Change in Net Debt/EBITDA ratio Trend for the financial year Evolution of the ratio 6.2* Closing rate Average rate 6 Change in EUR/USD rate 10/11 11/12 1.45 1.26 1.36 1.34 5.4 Ratio at 30 June 2011 4.2 4.4 5 4.9 EBITDA & cash generation V&S 4.4 Acquisition excluding forex and Group (0.6) (0.6) struc
Slide 61: Income tax
Income tax (€ millions) FY 10/11 FY 11/12 Corporate income tax on items from (317) (377) recurring operations Rate 22.0% 23.5% Effective corporate income tax rate from recurring operations of 23.5% in line with the target indicated in February 2012 61
Slide 62: Group share of net profit from recurring operations
Group share of net profit from recurring operations FY FY ∆ (€ millions and €/share) 10/11 11/12 Profit from recurring operations 1,909 2,114 +11% Financial income (expense) from recurring (469) (509) +8% operations Income tax on items from recurring operations (317) (377) +19% Minority interests an
Slide 63: Presentation Structure
Presentation Structure - Overall analysis - Sales analysis - Profit from recurring operations - Group share of Net Profit from Recurring Operations - Net profit - Conclusion and outlook - Appendices 63
Slide 64: Non-recurring items
Non-recurring items (€ millions) FY 11/12 Restructuring costs (30) Other non-recurring income and expenses (115) (asset impairment, disputes and risks, etc.) Other 1 Other operating income and expenses (145) Non-recurring financial items (39) (foreign exchange losses, etc.…) Non-recurring financial
Slide 65: Group share of net profit
Group share of net profit (€ millions) FY 10/11 FY 11/12 ∆ Profit from recurring operations 1,909 2,114 +11% Other operating income and expenses (56) (145) n/a Operating profit 1,852 1,969 +6% Financial income (expense) from recurring (469) (509) +8% operations Other non-recurring financial items 11
Slide 66: Dividend: € 1.58 / share
Dividend: € 1.58 / share € 06/07(1) 07/08(1) 08/09(1) 09/10 10/11 11/12(2) Proposed dividend 1.17 1.22 0.50 1.34 1.44 1.58 +10% A proposed dividend of € 1.58 (+10%) for the 2011/12 financial year, in line with the customary policy of cash distribution of approximately 1/3 of net profit from recurrin
Slide 67: Presentation Structure
Presentation Structure - Overall analysis - Sales analysis - Profit from recurring operations - Group share of Net Profit from Recurring Operations - Net profit - Conclusion and outlook - Appendices 67
Slide 68: Conclusion: Best growth since 2007/08
Conclusion Pernod Ricard exceeded its targets in 2011/12, particularly in: accelerating growth both in sales and Sales: +8%(1) profit from recurring operations PRO: +9%(1) improving significantly its operating margin rate PRO/Sales: +75 bps completing its refinancing and continuing its Net debt(2)/
Slide 69: Outlook
Outlook Macro-economic scenario for 2012/13: • slowdown in the pace of global economic growth in mature as well as in emerging markets • situation remaining difficult in Western Europe (impact of debt and public deficit reduction measures) • continued good growth in the US and strong growth in emerg
Slide 70: Next communications
Next communications DATE EVENEMENT Thursday 25 October 2012 Q1 2012/13 Sales Friday 9 November 2012 2011/12 Annual General Meeting Thursday 13 December 2012 Americas conference call 70
Slide 71: Presentation Structure
Presentation Structure - Overall analysis - Sales analysis - Profit from recurring operations - Group share of Net Profit from Recurring Operations - Net profit - Conclusion and outlook - Appendices 71
Slide 72: Emerging Markets
Emerging Markets Asia-Rest of World Americas Europe Algeria Argentina Albania Cambodia Aruba Armenia Cameroon Bolivia Azerbaijan China Brazil Balkans Egypt Caribbean CESAM Belarus Gabon Chile Bosnia India Colombia Bulgaria Indonesia Costa Rica Croatia Iran Dominican Republic Czech Republic Iraq Ecua
Slide 73: Strategic Brands' Organic Growth
Strategic Brands’ Organic Growth Volumes Volumes FY 2010/11 FY 2011/12 Net sales o/w volumes o/w price-mix organic growth (million 9-litre cases) (million 9-litre cases) Absolut* 11.0 11.4 3% 3% 0% * Chivas Regal 4.6 4.9 11% 7% 4% Ballantine's 6.3 6.2 0% -1% 2% Ricard 5.4 5.2 -3% -3% 0% * Jameson 3.
Slide 74: Sales Analysis by Period and Region
Sales Analysis by Period and Region Net Sales FY 2010/11 FY 2011/12 Variation Organic Growth Group Structure Forex impact (€ millions) France 750 9.8% 746 9.1% (4) -1% (4) -1% (0) 0% 0 0% Europe excl. France 2,114 27.7% 2,137 26.0% 23 1% 52 2% (20) -1% (9) 0% Americas 2,068 27.1% 2,167 26.4% 99 5% 1
Slide 75: Summary Consolidated Income Statement
Summary Consolidated Income Statement (€ millions) 30/06/2011 30/06/2012 Variation Net sales 7,643 8,215 7% Gross Margin after logistics costs 4,610 5,047 9% A&P expenditure (1,441) (1,571) 9% Contribution after A&P expenditure 3,169 3,476 10% Structure costs (1,260) (1,362) 8% Profit from recurring
Slide 76: Profit from Recurring Operations by Region (1/3)
Profit from Recurring Operations by Region (1/3) World (€ millions) FY 2010/11 FY 2011/12 Variation Organic Growth Group Structure Forex impact Net sales (Excl. T&D) 7,643 100.0% 8,215 100.0% 572 7% 581 8% (59) -1% 51 1% Gross margin after logistics costs 4,610 60.3% 5,047 61.4% 437 9% 376 8% (11) 0
Slide 77: Profit from Recurring Operations by Region (2/3)
Profit from Recurring Operations by Region (2/3) Americas (€ millions) FY 2010/11 FY 2011/12 Variation Organic Growth Group Structure Forex impact Net sales (Excl. T&D) 2,068 100.0% 2,167 100.0% 99 5% 121 6% (30) -1% 8 0% Gross margin after logistics costs 1,277 61.7% 1,362 62.9% 86 7% 72 6% (4) 0%
Slide 78: Profit from Recurring Operations by Region (3/3)
Profit from Recurring Operations by Region (3/3) France (€ millions) FY 2010/11 FY 2011/12 Variation Organic Growth Group Structure Forex impact Net sales (Excl. T&D) 750 100.0% 746 100.0% (4) -1% (4) -1% (0) 0% 0 0% Gross margin after logistics costs 546 72.7% 541 72.5% (4) -1% (3) -1% 0 0% (1) 0%
Slide 79: Foreign Exchange Effect
Foreign Exchange Effect On Profit Forex impact FY 2011/12 Average rates evolution On Net from (€ million) Sales Recurring 2010/11 2011/12 % Operations Chinese Yuan 9.03 8.50 -5.9% 52 30 US Dollar 1.36 1.34 -1.9% 33 24 Japenese Yen 113.22 105.19 -7.1% 10 4 Swiss Franc 1.30 1.20 -7.5% 4 2 Korean Won 1
Slide 80: Sensitivity of profit and debt to EUR/USD exchange rate
Sensitivity of profit and debt to EUR/USD exchange rate Estimated impact of 1% appreciation of the USD and linked currencies(1) Impact on the P&L M€ Impact on the balance sheet M€ Profit from Recurring Operations +16 Financial items Pre-tax profit from recurring (2) +14 & Increase/(decrease) of net
Slide 81: Group Structure Effect
Group Structure Effect On Profit from Group structure FY 2011/12 On Net Sales Recurring (€ million) Operations Spanish assets (3) (1) New Zealand assets (12) (2) Canadian assets (16) (5) Other (28) (7) Total Group Structure (59) (15) 81
Slide 82: Consolidated Balance Sheet (1/2)
Consolidated Balance Sheet (1/2) Assets 30/06/2011 30/06/2012 (€ millions) (Net book value) Non-current assets Intangible assets and goodwill (**) 16,037 17,360 Property, plant and equipment and investments 2,156 2,477 Deferred tax assets 1,459 1,965 Total non-current assets 19,652 21,802 Current as
Slide 83: Consolidated Balance Sheet (2/2)
Consolidated Balance Sheet (2/2) Liabilities and shareholders’ equity 30/06/2011 30/06/2012 (€ millions) Shareholders’ equity 9,306 10,803 Minority interests 190 169 of which profit attributable to minority interests 32 27 Shareholders’ equity – attributable to equity 9,497 10,972 holders of the par
Slide 84: Analysis of working capital requirement
Analysis of working capital requirement ∆ June 2012 FX effects and FY 2011/12 FY 2010/11 (€ millions) June 2011 June 2012 vs. June 2011 reclassifications WC change WC change Work-in-progress 3,150 3,494 344 187 157 85 Trade receivables before factoring/securitization (**) 1,784 1,877 93 11 82 (2) Ot
Slide 85: Change in net debt
Change in net debt (€ millions) 30/06/2011 30/06/2012 Self-financing capacity 1,916 2,064 Decrease (increase) in working capital requirements 32 (55) Financial result and tax cash (734) (803) Net acquisitions of non financial assets (213) (251) Free Cash Flow 1,001 955 Disposals/acquisitions assets
Slide 86: Bond Issuances
Bond Issuances Currency Par value Coupon Issue date Maturity date € 300 M Euribor 3M + 50 bps 06/12/2006 06/06/2011 € 550 M 4.625% 06/12/2006 06/12/2013 EUR € 800 M 7.000% 15/06/2009 15/01/2015 € 1,200 M 4.875% 18/03/2010 18/03/2016 € 1,000 M 5.000% 15/03/2011 15/03/2017 $ 201 M Libor 3M + spread 21
Slide 87: Debt Maturity at June 2012
Debt Maturity at 30 June 2012 At 30 June 2012, Pernod Ricard held € 0.8 billion in cash and € 1.5 billion in undrawn credit lines No significant debt repayments in the next financial year 2,4 Syndicated Credit Bonds Commercial Paper Other Debts Cash 1.7 1,6 € billion 0,8 1.4 0.5 1.2 1.0 0.9 0.8 0.8
Slide 88: Gross Debt Hedging at 30 June 2012
Gross Debt Hedging at 30 June 2012 (€ millions) Fixed rate Collars Variable rate 11 000 10 150 9 000 -3 % 7 000 57 % 5 000 46 % 103% 88% 63% 3 000 5% 1 000 4% 32% 3% 8% -1 000 EUR USD Others Total Debt breakdown(1) by currency consistent with that of EBITDA Increased proportion of fixed(2) rate debt
Slide 89: Number of shares used in diluted EPS calculation
Number of shares used in diluted EPS calculation FY FY (000’s) 10/11 11/12 Number of shares in issue at end of period 264,722 265,311 Weighted number of shares in issue (pro rata temporis) 264,424 265,048 Number of treasury shares (1,740) (2,109) Dilutive impact of stock options 2,348 2,209 Number o
Slide 90: Pernod Ricard
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