Remy Cointreau Sa · EURONEXT:RCO
Remy Cointreau Sa — H1 2010/11 Earnings Presentation
27 slides from Remy Cointreau Sa's earnings presentation, November 2010
Slide 1: Interim Results
Interim Results Six months ended 30 September 2010 L d London
Slide 2: Jean-Marie Laborde, Chief Executive Officer
Jean-Marie Laborde Chief Executive Officer Interim Results at 30 September 2010 2
Slide 3: Rémy Cointreau: A deliberate strategy to create value
Rémy Cointreau: A deliberate strategy to create value Focus on premium and upmarket segments Develop the profitability of every brand Long-term outlook and strategy In the context of the crisis, crisis two significant decisions to accelerate growth A restructured t t d network t k (exit ( it
Slide 4: Recovery in both Sales and Profitability in the First Half of 2010/11
Recovery in both Sales and Profitability in the First Half of 2010/11 Organic Published Turnover €428.2m +11.3% +18.3% ¾ of which own brands: €378.2m +11.4% +18.6% Current operating profit €81.0m +8.4% +23.7% Current operating margin 18 9% 18.9% Net profit (exc non (exc. non-recurring recurr
Slide 5: Review of Activities
Review of Activities Interim Results at 30 September 2010 5
Slide 6: Six Months Highlights
Six Months Highlights Significant sales growth All regions are growing A fully operational and efficient network An upmarket and profitable positioning Increased investment to support our key brands A favourable financial position, providing security until 2016 (Bond issue: €205m and pri
Slide 7: Breakdown of Turnover by Activity
Breakdown of Turnover by Activity % Change Organic PublishedH H1 Cognac 20.7 +29.6 Liqueurs & Spirits -5.5 -0.5 Champagne 11.7 +15.6 Sub-total - Group brands +11.4 +18.6 Partner brands +10.0 +16.3 Total +11.3 +18.3 Interim Results at 30 September 2010 7
Slide 8: Group Turnover
Group Turnover €m Currency impact Activity 40 9 40.9 25.4 Published +18.3% 361.9 Organic +11.3% 428.2 Sept 09 Sept 10 Interim Results at 30 September 2010 8
Slide 9: Breakdown of Turnover (Group Brands)
Breakdown of Turnover (Group Brands) (by activity and geographic area) 34.7% 14.0% 31.2% 12 7% 12.7% 11.0% 65.1% 20.9% 54 3% 54.3% 56.1% Cognac Liqueurs & Spirits Champagne 62.7% 26.4% 10.9% Americas Asia & Others Europe 30.2% 40.4% 29.4% Interim Results at 30 September 2010 9
Slide 10: Growth in Group Current Operating Profit
Growth in Group Current Operating Profit €m Currency Volume Mix/ A&P Others impact Price +13.7 +9.9 +9.9 (16.5) (1.5) 65.5 81.0 Published +23,7% Organic +8.4% Sept 09 Sept 10 O Operating ti 18 9% 18.9% margin: 18.1% (org. 17.6%) Interim Results at 30 September 2010 10
Slide 11: Growth in Interim Profitability (excluding non-recurring items)
Growth in Interim Profitability (excluding non non--recurring items) Net profit excluding non-recurring items Net profit from continuing activities* +28.4% N/A 37.0 47.5 39.4 14.0 Sept 09 Sept 10 Sept 09 Sept 10 *After provision for impairment of the Metaxa brand of €34m (effect net of tax) Interim
Slide 12: Cognac: Strong Growth led by QSS
Cognac Strong Growth led by QSS Volume sales (‘000 cases) Turnover (€m) Published +29.6% Organic +12.8% Organic +20.7% 695.4 784.2 182.8 237.0 Sept 09 Sept 10 Sept 09 Sept 10 Interim Results at 30 September 2010 12
Slide 13: Cognac Current Operating Profit
Cognac Current Operating Profit ((€m)) Currency Volume Mix/ A&P Others impact Price +13.6 +2.6 +12.7 +7.8 (14.3) Published +45,6% 49.1 71.5 Organic +29.5% Sept 09 Sept 10 Operating 30.1% margin: 26.9% (org. 28.8%) Interim Results at 30 September 2010 13
Slide 14: Liqueurs & Spirits
Liqueurs & Spirits Volume sales (‘000 cases) Turnover (€m) Published -0.5% Organic -8.0% Organic -5.5% 1,852.1 1,704.4 100.3 99.8 Sept 09 Sept 10 Sept 09 Sept 10 Interim Results at 30 September 2010 14
Slide 15: Liqueurs & Spirits Current Operating Profit
Liqueurs & Spirits Current Operating Profit ((€m)) Currency Volume Mix/ A&P Others impact Price +1.8 +0.9 09 (3.6) (1.4) (2 5) (2.5) Published (18.6%) 25.8 Organic (25.6)% 21.0 Sept 09 Sept 10 O Operating ti 21 0% 21.0% margin: 25.7% (org. 20.2%) Interim Results at 30 September 2010 15
Slide 16: Champagne
Champagne Volume sales (‘000 cases) Turnover (€m) Published +15.6% Organic +13 +13.7% 7% Organic +11.7% +11 7% 209.3 237.9 35.8 41.4 Sept 09 Sept 10 Sept 09 Sept 10 Interim Results at 30 September 2010 16
Slide 17: Champagne Current Operating Profit
Champagne Current Operating Profit ((€m)) Currency Volume Mix/ A&P Others impact Price +1.2 (3.5) (2.8) +0.6 +0.5 (0 8) (0.8) (0.8) Published +20.0% Sept 09 Organic +5.7% Sept 10 Interim Results at 30 September 2010 17
Slide 18: Partner Brands
Partner Brands Turnover ((€m)) Current operating p g profit p (€m) ( ) O Organic i +10.0% 10 0% 43.0 50.0 2.1 0.8 Sept 09 Sept 10 Sept 09 Sept 10 Interim Results at 30 September 2010 18
Slide 19: Consolidated Interim Results
Consolidated Interim Results Frédéric Pflanz Finance Director Interim Results at 30 September 2010 19
Slide 20: Analysis of Operating Profit
Analysis of Operating Profit (€m) Sept 10 Sept 09 Turnover 428.2 361.9 Gross profit 257.7 207.6 In % 60.2% 57.4% g expenses Sales & marketing p ((142.0)) ((108.1)) Administrative expenses (40.0) (37.6) Other income & expenses 5.3 3.6 Current operating profit 81.0 65.5 Operating margin 18.9% 18.1% In
Slide 21: Interim Net Profit
Interim Net Profit (€m) 2010 2009 Current operating profit 81.0 65.5 Other operating income/(expenses) (45.5) (0.6) of which provision for impairment of the Metaxa brand (45.0) - Operating profit 35.5 64.9 Financial charges (18.8) (10.4) Profit before tax 16.7 54.5 Income tax (4 8) (4.8) (16 7) (16.
Slide 22: Financial Expenses
Financial Expenses (€m) Sept 10 Sept 09 Net borrowing costs (excluding impact of refinancing) (13.4) (12.0) Cost of refinancing (3.7) - Average net borrowings 607.9 647.4 Average interest rate (excluding impact of refinancing) 4.41% 3.71% Oth financial Other fi i l iincome and d expenses (1 7) (1.7)
Slide 23: Financial Debt and Cash Flow
Financial Debt and Cash Flow (€m) Sept 10 Sept 09 Net debt (end of period) 484.7 526.2 40.3 03 16.5 65 Net cash flow from operating activities Other (including capital expenditure) (18.2) (24.7) Increase/(decrease) in cash flow before financing activities 22.1 (8.2) Net debt ratio/EBITDA = 2.78 Inte
Slide 24: Change: Impact of Currency Hedging
Change: Impact of Currency Hedging 1.43 1.41 1.41 Average US/$ rate 1.41 1 34 1.34 Hedged rate 1.37 1.37 1.28 2007/08 2008/09 2009/10 2010/11 March March March September Interim Results at 30 September 2010 24
Slide 25: Balance Sheet at 30 September
Balance Sheet at 30 September Assets Equity & Liabilities 2010 2009 2010 2009 Non-current assets 960 965 Shareholders’ equity 995 964 Current assets 1 205 1,205 1 193 1,193 Current and non- 685 668 of which inventories 928 926 current liabilities of which trade receivables 261 248 Gross financial de
Slide 26: Post-Closing Events
Post--Closing Events Post On 15 November, November Rémy Cointreau initiated a competitive bid process to dispose of its Champagne division j Objectives: Accelerate growth and continue its upmarket strategy for its international premium brands p Continue the geographic expansion of its network in
Slide 27: Outlook for 2010/11
Outlook for 2010/11 Increased confidence despite economic uncertainties, mainly in Europe Accelerated growth in markets with strong potential and with a favourable mix effect Continued strengthening of an investment policy to support our premium brands Rémy Cointreau is thus providing itself wit