Remy Cointreau Sa · EURONEXT:RCO
Remy Cointreau Sa — FY2021-22 Earnings Presentation
45 slides from Remy Cointreau Sa's earnings presentation, June 2022
Slide 1: Rémy Cointreau 2021-22 Full Year Results
Se @ REM MARTIN, nus HER SON ay . ” salma) a. ] TEAM UP=EXCELLENCE ot WEMAKECHANGE, WEMAKEPROGRESS. # BRUICHLADDIC ependent taurant / palition ~ TORE gverestaurants.com Co) REMY COINTREAU Des terroirs, des hommes et du temps 2021-22 Full Year Results
Slide 2: Introduction
BELIEVE IN TIME Introduction Marc Hériard-Dubreuil, chairman PLEASE DRINK RESPONSIBLY
Slide 3: 2021/22 - A historic year for Rémy Cointreau
2021/22 - A historic year for Rémy Cointreau o Newrecords for Rémy Cointreau on all financial KPls... o alongside meaningful step-up in investments to prepare tomorrow (A&P, Capex, strategic WCR, etc.) o Very strong shareholder return: o Circa million (1.9% of capital) of share buybacks in 2021-22 ©
Slide 4: Eric Vallat, CEO
Eric Vallat, CEO Yn WwW ne 20 c 20 c > D v
Slide 5: Key figures FY 2021-22
+27.3% * * 68.6% +39.9% Ratio A * +29.4% +1.5pp * +2.3pp * 0.79x vs. 2Y 25.5% of sales €1,312.9m €901.1m €334.4m €353.3m 5 (*) Organic growth
Slide 6: Healthier and more sustainable growth
Healthier and more sustainable growth ... o Long lasting consumer trends o Strong support behind our strategic brands o More consistent pricing o End-client demand : from push to pull o Commercial efficiency and partnerships with distributors
Slide 7: Led by meaningful marketing & communication plans
_ led by meaningful marketing & communication plans Rémy Martin Create value WE MAKE CHANGE, H The Botanist WE MAKE PROGRESS. Bruichladdich Grow Leverage a jewel " Malts potential
Slide 8: Strong progress on our strategic priorities
and strong progress on our strategic priorities Sales Mix-Price Unlocked growth potential of +92 pts Global Priority Brands, beyond Cognac A INCREASE Vv 2) O R W/NU) E PER CASE Org. Gross Margin: Transformation on its way for +15 pt Regional Power Brands ANA o/w +0.8 pt of mix/price ) REMY COINTREAU
Slide 9: Beyond Financials, another year of progress in Sustainability
Beyond Financials, another year of progress in Sustainability 78% cultivated lands committed to responsible & sustainable certifications versus 64% in 2020-21 48% of women managers o/w 33% in ExCom vs. 10% in 2020-21 >715% of French employee shareholders Launch of our responsible } \ consumption rit
Slide 10: We are on track in our Sustainable Exception Journey
We are on track in our Sustainable Exception Journey... 100% of terroirs committed to responsible & sustainable agricultural certifications by 2025 #RESPONSIBLEAGRICULTURE 100% of terroirs leading agro-ecological transition of their territories by 2030 #OURSOILSASCARBONSINKS 100% of climate-resistan
Slide 11: Proud to be the 1% carbon neutral Company in W&S
Proud to be the 1%* carbon neutral Company in W&S... projects already launched +600, 000 TCO2 avoided or sequestered based on reforestation and renewable energy projects (equal to 4Y of RC carbon neutrality) oT
Slide 12: While acknowledging we still have a long way to go
. while acknowledging we projects already launched +600, 000 TCO2 avoided or sequestered based on reforestation and renewable energy projects (equal to 4Y of RC carbon neutrality) still have a long way to go 12
Slide 13: Business review
Business review Eric Vallat, CEO
Slide 14: Group brands: +27.7% Partner brands: +15.2%
Group brands: +27.7% Partner brands: +15.2% 14
Slide 15: Group sales breakdown
FY 2021/22 - Organic sales growth by region y AMERICAS +30.0% +54.2% vs. 2Y +22.4% -3.5% vs. 2Y +25.8% +19.8% vs. 2Y Group: +27.3% Group sales breakdown mAPAC mEMEA mg Americas Organic sales growth 15
Slide 16: FY 2021-22 Current Operating Margin by division: Cognac
FY 2021-22 Current Operating Margin by division Cognac: +43.8% of organic COP growth Sales €948.3m ee - Reported COP/Sales : +4.0 pts + Organic change (%) +26.3% Volume / Price-Mix +12.5% / +13.8% +26 pts 0.2 pt 0.0 pt Current operating profit €323.0m +14 pt +01 pt | | Volume: +06 pp Price/Mix: +08
Slide 17: FY 2021-22 Current Operating Margin by division: Liqueurs & Spirits
FY 2021-22 Current Operating Margin by division Liqueurs & Spirits: +10.6% of organic COP growth Sales €333.2m Organic change (%) +31.7% Volume / Price-Mix +24.6% /+7.1% Current operating profit €35.5m prcreertseeettmereeeetee Reported COP/Sales : -2.7 pts +15 pt “53 pts | | +17 pt +03 pt -0.8 pt Zz
Slide 18: Financial results
Financial results Luca Marotta, CFO
Slide 19: FY 2021-22 Current Operating Profit
FY 2021-22 Current Operating Profit Organic % Organic % Ending March (in €m) 2021-22 2020-21 Reported % vs. 2020-21 vs. 2019-20 Net Sales 1,312.9 1,010.2 430.0% 427.3% 429.4% Gross Profit 901.1 680.1 432.5% +30,2% 433.4% % of sales 68.6% 673% +13 pt +15 pt +21 pts Sales and marketing expenses (433.2
Slide 20: FY 2021-22 Current Operating Margin
FY 2021-22 Current Operating Margin prerrreennceeneeeenecnnneneceeeeeeennnnnneeeeeeneeenneneen Reported COP/Sales : +2.1 pts 5 +1.5 pt -1.5 pt +2.3 pts +0.0 pt -0.2 pt OO as Volume: +07 pt Price/Mix: +0.8 pt 2 5. 5% Organic COP/Sales: +2.3 pts FY 20/21 Gross A&P Distribution/ Currency Scope FY 21/22
Slide 21: FY 2021-22 Net profit
FY 2021-22 Net profit Ending March (in €m) 2021-22 2020-21 Reported % Organic % Current Operating Profit 334.4 236.1 +416% 439.9% Other operating income (expenses) (14.1) (0.2) - - Operating profit 320.3 235.9 435.8% +34,1% Net financial income (charge) (13.2) (14.6) - - Pre-tax profit 307.1 221.2 4
Slide 22: FY 2021-22 Non-recurring items
FY 2021-22 Non-recurring items Ending March (in €m) 2021-22 2020-21 Net profit - Group share 212.5 144.5 Other operating expenses 14.1 0.2 Non-recurring tax items (3.4) (0.1) Impact of tax rate changes on deferred taxes in France, the UK and Greece 49 3.6 228.1 148.2 Net profit excluding non-recurri
Slide 23: FY 2021-22 Net debt / Cash flow
FY 202\-22 Net debt/ Cash flow Ending March (in €m) 2021/22 2020/21 Change Opening net financial debt (1 April) (314.3) (450.9) 136.6 Gross operating profit (EBITDA) 383.4 272.5 110.9 WCR of eaux-de-vie and spirits in ageing process (677) (58.7) -9.0 Other working capital items (72.7) 45.8 118.4 Cap
Slide 24: FY 2021-22 Net Financial expenses
FY 2021-22 Net Financial expenses Ending March (in €m) 2021/22 2020/21 Net debt servicing costs (10.4) (12.0) Net currency losses (0.7) (0.4) Other Financial expenses (net) (2.1) (2.2) (13.2) (14.6) Net financial income (charges) 24
Slide 25: FY 2022-23E Foreign exchange - Hedging impact
FY 2022-23E Foreign exchange - Hedging impact 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23E Average EUR/USD conversion rate 1.17 1.16 1.11 1.17 1.16 1.08 Average EUR/USD hedged rate 1.19 118 1.16 1.17 1.17 113 Total Sales impact (in €m) (48.9) 1.5 24.5 (36.3) 24.6 €70-80m Total COP impact (in €m)
Slide 26: Balance sheet as of March 2022
Balance sheet as of 31 March 2022 (€m) Non-current assets Current assets Ow inventories Cash Total Assets Stocks/Assets March jn 2022 983 33% 1,880 63% 1615 54% 16 4% 2,979 100% 54% March j, 9 2021 920 33% 1,660 60% 1493 54% 201 7% 2,781 100% 54% Shareholders’ equity Current and Non-current liabilit
Slide 27: FY 2021-22 ROCE
FY 2021-22 ROCE 26.7% 19.7% i 13.0% 121% Cognac Liqueurs & Spirits 23.8% 18.4% Group Brands mw 2020/21 gg 2021/22 -49.6% 22.2% 171% Group 27
Slide 28: FY 2021-22 Changes in capital employed
FY 2021-22 Changes in capital employed (me) | u } (412.5%) $31.8 41.3 el ead +123.9 ME +9.0% Mars- 21 Cognac Liqueurs & Spirits Partner Reported brands Mars- 22 Organic Currency Mars- 22 Reported 28
Slide 29: o o ED (*)
• • • o o +1.00€ ED (*) 170 +1.00€ ED (*) 150 +1.00€ +1.00€ ED (*) ED (*) 130 110 90 70 50 30 10 -10 29
Slide 30: Outlook
Outlook Eric Vallat, CEO
Slide 31: In a very challenging environment, we will need to be more agile than ever
IN A VERY CHALLENGING ENVIRONMENT, WE WILL NEED TO BE MORE AGILE THAN EVER WE ARE STARTING THE YEAR WITH CONFIDENCE
Slide 32: Because we are ahead in our 10Y plan
Because we are ahead in our 10Y plan $$ 2019-20 mm 2020-21 me 2021-22 202930 Gross margin® 66.0% 66.8% 69.2% 72.0% COP margin® 21.0% 23.3% 26.5% 33.0% 0 In organic terms - At 2019/20 scope and exchange rate 32
Slide 33: Because we have strengthened our organization & model
Because in 2 years we have strengthened our organization & model Commercial excellence Net revenue management Digitalization Strengthened Executive Committee 12 months of diagnosis Launch of 1% pilots (the US, the UK and Benelux) Ready to deploy Developed strong platform to scale up e-boutique openi
Slide 34: Because we are well-positioned in a new paradigm
Because we are well-positioned to antage of new paradigm in volatile environment N The near future is unpredictable, and we will have to face headwinds * Stagnation ° Inflation * Geopolitical situation ° Health restrictions BUT we are in a good position, better than 2 years ago * Our business model
Slide 35: 2022-23 Outlook
2022-23 Outlook Ensure perfect execution of strategic plan Value market share gains in the exceptional spirits market Another year of strong sales growth and A&P investments Profitable growth trajectory led by: o Resilience of gross margin in inflationary environment © Good control of OPEX Expected
Slide 36: Appendices
NATURALLY ENCHANTING BELLE DE BRILLET enero ncaa Appendices
Slide 37: Quarterly Sales by division (1/2)
Quarterly Sales by division (1/2) Organic % Organic % In€m Q1 21/22 at 20/21 Reported % ve a Oph vs is ‘Dat Cognac 199.6 98.7 4102.3% 4+114.4% 429.8% Liqueurs & Spirits 85.3 461 484.9% 490.5% 458.0% Subtotal: Group Brands 284.9 144.8 +96.8% +106.8% 437.0% Partner Brands 8.2 53 +55.6% +55. 3% +218 %
Slide 38: Organic sales growth: at constant currency & scope
Organic sales growth: at constant Currency & scope 38
Slide 39: Organic growth: at constant currency & scope
Organic growth: at constant Currency & scope 39
Slide 40: Foreign exchange - Hedging impact
Foreign exchange - Hedging impact 119 1.18 _ 116 a _ 1 16 Hedged rate €/$ — A & verage €/$ 110 WW 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 40
Slide 41: Key events during the year (1/3)
Key events during the year (1/3) 3 June 2021 - 9 December 2021 6 August 2021 1 October 2021 3 November 2021 8 November 2021 Completion of a share buyback programme of 982,713 shares Between June 7th and December 8th, 2021, the Group acquired 982 713 shares (representing 1.90% of the share capital of
Slide 42: Key events during the year (2/3)
Key events during the year (2/3) 26 November 2021 13 January 2022 8 February 2022 Rémy Cointreau supports a multi-year programme on wine growing and cereals Rémy Cointreau's new partnership with Genesis (formerly Greenback SAS) uses a combination of soil samples and metadata to measure the impact of
Slide 43: Key events during the year (3/3)
Key events during the year (3/3) 23 February 2022 29 March 2022 Leonardo DiCaprio acquires equity stake in Champagne Telmont Champagne Telmont today announced that actor and environmentalist, Leonardo DiCaprio, has come on board as an investor in the company. Au Nom de la Terre, "In the Name of Moth
Slide 44: Next financial publication
Next financial publication
Slide 45: Q&A
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