C&C Group PLC · LSE:CCR
C&C — Investor Day (March 2016)
113 slides from C&C's investor day presentation, Mar 10, 2016
Slide 1: 2016 Capital Markets Day
went! st C&C group plc “ESE. 2016 Capital Markets Day
Slide 2: Disclaimer
Disclaimer The presentation contains forward-looking statements, including statements about the C&C Group plc's (the “Group”) intentions, beliefs and expectations. These statements are based on the Group's current plans, estimates and projections, as well as the Group's expectations of external cond
Slide 3: Welcome | Agenda
Welcome | Agenda 0930 Presentations 1130 Coffee 1150 Presentations 1320 Q&A 1350 Lunch 1430 Close C&C Group plc | Slide 3
Slide 4: Presentation Team: Phil Tate
Presentation Team Phil Tate European CEO C&C Group plc | Slide 4
Slide 5: Presentation Team
Presentation Team Local Heroes Taking on Global Brands Mark Boulos Paul Condron Brian Beattie Chief Commercial Officer Marketing Director | Scotland Marketing Director | All Ireland C&C Group plc | Slide 5
Slide 6: Presentation Team: Partnership with Pabst
Presentation Team Partnership with Pabst Chris Barrow Chief Operating Officer C&C Group plc | Slide 6
Slide 7: Presentation Team: Growing Export Opportunity
Presentation Team Growing Export Opportunity Andrea Pozzi Conor Hardy Managing Director | C&C Brands Commercial Director | APAC C&C Group plc | Slide 7
Slide 8: Export | Growth showing real momentum
Export | Growth showing real momentum Italy +8% Spain +8% France +3% Portugal +18% Africa entry to market Source: Company data / Estimates C&C Group plc | Slide 8
Slide 9: Consumer & Customer Trends
Consumer & Customer Trends Phil Tate European CEO Video Clip C&C Group plc | Slide 9
Slide 10: Local Heroes Taking on Global Brands
Local Heroes Taking on Global Brands Mark Boulos | Chief Commercial Officer
Slide 11: Re-cap of Key Trends
Re-cap of Key Trends Quality, Tried & Brand Cut Retailer Treat Heritage, Tested Though Range Provenance C&C Group plc | Slide 11
Slide 12: So What for C&C?
SO WHAT FOR C&C? C&C Group plc | Slide 12
Slide 13: Differentiation & The Importance of Portfolio
Differentiation & The Importance of Portfolio C&C Group plc | Slide 13
Slide 14: Tried & Tested | Premium Mainstream
Tried & Tested | Premium Mainstream • Premium mainstream – on-trend • Quality, heritage, provenance • €140m invested in the three power brands over the last 5 years (equal to 10% of the three brands’ net sales)(1) • Significant prompted awareness (2) o Magners: 86% o Tennent’s: 98% o Bulmers: 91% Lo
Slide 15: Treat | Boutique and Speciality
Treat | Boutique and Speciality C&C Group plc | Slide 15
Slide 16: Treat | Boutique and Speciality
Treat | Boutique and Speciality • Opportunity to price up and differentiate • 8% of branded volumes now coming from boutique and speciality (1) • Heverlee 15 khl in Ireland & Scotland – 265% growth in 2 years (2) • Chaplin & Cork’s – €1m sales revenue in 12 months (1) • Excited to take on Pabst Brew
Slide 17: Local Heroes: The Power Brands
LOCAL HEROES THE POWER BRANDS C&C Group plc | Slide 17
Slide 18: Tennent's Lager
Cac group plc ea Tennent’s Lager
Slide 19: Scotland | Tennent's Lager: A 'Fabric' Brand
Scotland | Tennent’s Lager: A ‘Fabric’ Brand • From Scotland’s oldest brewer, since 1556 • Integral brand in Scottish society • In On-trade, at the heart of the bar. • In Off-Trade, at the heart of the fixture. • Scotland’s No.1 beer brand • Broad consumer appeal Source: AC Nielsen, 52 w/e 30.01.16;
Slide 20: Scotland | Scotland's Favourite Drink
Scotland | Scotland’s Favourite Drink C&C Group plc | Slide 20 Source: CGA, MAT to 08/08/15; AC Nielsen, MAT to 15/08/15
Slide 21: Scotland | Tennent's Lager: On-Trade
Scotland | Tennent’s Lager: On-Trade • On the bar in 8 out of 10 pubs • Almost 2 in every 3 pints of lager sold in Scotland • Two-thirds of volume from more profitable On-Trade sector • At the heart of our brand-led wholesale model Source: CGA, 52 w/e 23.01.16; AC Nielsen, 52 w/e 30.01.16 C&C Group
Slide 22: Scotland | Tennent's Lager: Off-Trade
Scotland | Tennent’s Lager: Off-Trade In Scottish Takehome: • Scale o 65% bigger than Budweiser o More than 3x size of Fosters • Rate of sale o Higher than any Beer brand in the UK o 48% faster than Fosters o 60% faster than Stella Artois o 85% faster than Carling • Presence o Highest levels of bran
Slide 23: Scotland | Tennent's Lager: Platforms
Scotland | Tennent’s Lager: Platforms Shareable Point of Music Football Content Purchase C&C Group plc | Slide 23
Slide 24: Scotland | Tennent's Lager: Agile Social & PR
Scotland | Tennent’s Lager: Agile Social & PR C&C Group plc | Slide 24
Slide 25: Scotland | Tennent's Lager: Brand Health
Scotland | Tennent’s Lager: Brand Health ‘Brand consumed by people like me’ Source: Hall & Partners / Taylor Mackenzie, Jan-16 C&C Group plc | Slide 25
Slide 26: Bulmers Cider
“04° . cac group plc ope Bulmers Cider
Slide 27: Bulmers | Fundamentals
Bulmers | Fundamentals • Ireland’s original cider with over 80 year’s heritage • No. 3 LAD brand (1) • No.1 cider brand & No.1 packaged LAD brand with 44% share of packaged LAD (1) • 91% on-trade and 47% off-trade cider share (1) • Pint bottle available in 95% of Irish pubs with draught available in
Slide 28: Bulmers | Brand Strength: Pricing (Off)
Bulmers |Brand Strength: Pricing (Off) 380 HEINEKEN 360 BUDWEISER 340 BULMERS 320 COORS 300 CARLSBERG 280 MOLSON CANADIAN TOP 5 LAGERS AVERAGE PRICE 260 240 Strongest Retail 220 Pricing in Market 200 4 W/E AUG 09/15 4 W/E SEP 06/15 4 W/E OCT 04/15 4 W/E NOV 01/15 4 W/E NOV 29/15 4 W/E DEC 27/15 4 W/
Slide 29: Bulmers | Brand Strength: Packaged (On)
Bulmers | Brand Strength: Packaged (On) Packaged RoS On-Trade (litres) Packaged Distribution On-Trade % 250 100 Bulmers Bulmers 200 80 150 60 40 100 Other Cider 20 50 Other Cider 0 0 -20 FEB 2015 MAR 2015 APR 2015 MAY 2015 JUN 2015 JUL 2015 AUG 2015 SEP 2015 OCT 2015 NOV 2015 DEC 2015 JAN 2016 -50 F
Slide 30: Bulmers | Brand Strength: Draught (On)
Bulmers | Brand Strength: Draught (On) Draught RoS On-Trade (litres) Draught Distribution On-Trade % 160 100 Bulmers 140 80 120 Bulmers 60 100 80 40 60 Other Cider Other Cider 20 40 20 0 0 -20 FEB 2015 MAR 2015 APR 2015 MAY 2015 JUN 2015 JUL 2015 AUG 2015 SEP 2015 OCT 2015 NOV 2015 DEC 2015 JAN 2016
Slide 31: Bulmers | Our Activity
Bulmers | Our Activity Bulmers video Video Clip C&C Group plc | Slide 31
Slide 32: Bulmers | Platforms
Bulmers | Platforms Point of Socially Relevant Music Innovation Purchase Digital Content C&C Group plc | Slide 32
Slide 33: Bulmers | Activation
Bulmers | 360 Activation Experiential & student Always On Digital PR & Sponsorship Year round Sponsorship & PR Strategy Grow Innovation Grow draught Winning the fridge C&C Group plc | Slide 33
Slide 34: Magners Cider
Magners Cider C&C Group plc | Slide 34
Slide 35: Magners | Fundamentals
Magners | Fundamentals • Transformed the perception of cider in the UK, the world’s largest cider market, in 2005 • Now exported to over 50 countries worldwide • c. 680 khl globally • No. 5 cider brand globally • No. 1 bottled apple cider brand in GB market • No. 1 cider in Northern Ireland Source:
Slide 36: Magners | Recent Developments
Magners | Recent Developments • Stabilised the business • The UK business makes c. €10m • Invested in market share this year • Rationalisation has hurt other brands • In the GB off-trade, Magner’s Original is the only top 5 apple brand ahead of the market in both volume (+10%) and value (2%) • Have
Slide 37: Magners | This Year's Campaign
Magners | This Year’s Campaign Video New Campaign - 2nd largest media spend in the category - On air for half the year Video Clip - From 1% share of voice to 45% C&C Group plc | Slide 37
Slide 38: Summary
Summary 1 2 3 Trends Portfolio Local heroes Our brand portfolio and business model present us with enormous opportunities… C&C Group plc | Slide 38
Slide 39: Growing Export Opportunity
Growing Export Opportunity Conor Hardy | Commercial Director Asia Pacific C&C Group plc | Slide 39
Slide 40: International
International Photo Montage Clip C&C Group plc | Slide 40
Slide 41: Export | Historic Context
Export | Historic Context ► Export activity since 2002 International Volumes (khl) HL 500,000 c. 450 khl ► Started in USA & Europe 450,000 400,000 ► More recent expansion in Asia & Africa 350,000 300,000 ► Partnership approach 250,000 200,000 150,000 ► Profitable model 100,000 50,000 ► Sustained gro
Slide 42: C&C International | Global Footprint
C&C International | Global Footprint Sustained Expansion of International Business Magners 54 Markets Globally 40 Most Influential Cities 51 markets; +6% vol growth YoY Tennent’s 31 markets; +34% vol growth YoY Woodchuck Untapped Potential Source: Company data / Estimates C&C Group plc | Slide 42
Slide 43: Overview of C&C's markets | Asia Pacific
Overview of C&C’s markets | Asia Pacific Market size • 45 kHL • Volume + 57% YOY • Volume Split: 58% Asia: 42% ANZ • DBM to NSV ratio 28% • Magners No 1 or No 2 position in Asian markets C&C business model • 16 Direct Markets • 3rd Party Distribution model • Contract packing - Australia • Regional O
Slide 44: Successful Brand Led Export Model Italy
Successful Brand Led Export Model Italy Andrea Pozzi Video Clip C&C Group plc | Slide 44
Slide 45: International | Brand Led Export Strategy
International | Brand Led Export Strategy The rise of the global marketplace is creating new opportunities for our brands Authentic Exports New Flavours Craft Innovation C&C Group plc | Slide 45
Slide 46: International Cider | Growth Opportunity
International Cider | Growth Opportunity Cider is still one of the fastest growing LAD categories globally Global Cider Volume Cider % of LAD Excluding UK Market mHl litres Finland 9% 14 +15% Ireland 13% Germany 1% 12 +12% France 4% 10 +11% +8% Spain 3% +5% Argentina 5% 8 Australia 8% 6 USA 6% South
Slide 47: Successful 'Asset Light' Operating Model
Successful ‘Asset Light’ Operating Model Partnerships key to asset light model and growth 1. Long term deals with strong local and regional players Magners distribution in Thailand 2. Synergistic portfolio alignment 3. Leverage local expertise and in market brand New agreement across France & German
Slide 48: Export | Positive Growth Trajectory
Export | Positive Growth Trajectory +15% +66% Europe Vol YoY Asia Vol YoY Year 1 Africa +45% Aus/NZ Vol YoY +20% 24% 17% FY16 Own Brand Vol Growth FY16 Operating Margin DBM to NSV C&C Group plc | Slide 48 Source: Company data / Estimates before allocation of central overheads
Slide 49: Outlook | Positive Growth Trajectory
Outlook | Positive Growth Trajectory Meaningful growth - investing today for the future Strategy Seeding for long term, Innovation, leverage beer portfolio Europe Build on strong foundations and expand footprint Africa Enter Nigeria and South Africa Asia Expand beer & cider footprint through local p
Slide 50: Pabst Brewing Company
Pabst Brewing Company C&C Capital Markets Day
Slide 51: Agenda
Agenda Who we are Why we will win How we are doing
Slide 52: Pabst Brewing Co. logo
Slide 53: Flagship Business Overview
Flagship Business Overview Iconic American lager Leading Pabst Brewing Company (‘PBC’), founded in 1844, is Craft innovative craft brands in the US the largest independently-owned beer company in the US Market focused • Majority owned by Great American Brewing Local Legends premium brands th
Slide 54: US Beer market - evolution of the segments
US Beer market - evolution of the segments Super Premium + Craft = Premium American Key Drivers Drinking less but 24% 50% better quality Imports = International Local and heritage 2016 16% 20% 2025 Premium + Sub Premium = Value/Economy Demand for alternative alcohol 60% 30% Searching for the new 'ne
Slide 55: Portfolio led by the iconic PBR brand
Portfolio led by the iconic PBR brand An American Original Millennials Beer of Choice Award winning Easy drinking yet flavorful lager first National brand known for being Winner 2015 Brewer of the Year introduced in Milwaukee authentic, creative, hip and in the Large Brewing Company in 1844 in
Slide 56: Strongly affiliated with craft
Strongly affiliated with craft Individualistic Image Cache Leads to Strong Craft Affiliation Proudly supports consumers individualism – trend PBR is the #1 complementary domestic beer to craft setting – consumer driven drinkers Local Grassroots appeal 8 out of 10 top craft markets are top PB
Slide 57: Range of authentic brands with unique regional ties
Range of authentic brands with unique regional ties
Slide 58: Sales and Marketing platform restructured for growth
Sales and Marketing platform restructured for growth
Slide 59: Key new hires since acquisition
Key new hires since acquisition PBC Executive Team Eugene Kashper Justin Beck Chief Executive Officer Chief of Staff Cordell Sweeney Gleb Lifshits Brian Bousley Rob Urband Chris Barrow Rich Pascucci Chief Financial CEO, Small Town President, Chief Legal Officer COO Chief Growth Officer Officer Brewe
Slide 60: Not Your Father's Root Beer the #1 craft SKU in the US
Not Your Father's Root Beer the #1 craft SKU in the US Not Your Father's Appeals to the New Craft Consumer Top 10 Craft SKU's for 13 Weeks Ending 01/02/2016 • NYF's Root Beer is a beer infused with natural spices and herbs – High ABV, premium pricing and heavy flavor – Appeals to the craft consumer
Slide 61: NYF's Priced at a Premium to Craft Category
NYF's Priced at a Premium to Craft Category
Slide 62: NYF is attracting new consumers
NYF is attracting new consumers Attracting New Consumers Expanding Portfolio Offering Track record of attracting new consumers to the beer category NYF 52 Week Volume Through Feb 6 (000s cases) ACV (%) Root New Buyers Beer 2,695 28% 8% Category Expansion 11% Ginger Beer 117 3.4% Ginger beer is expec
Slide 63: Clear partner of choice for multi-nationals
Clear partner of choice for multi-nationals Brands Imports Cider Small Town Brewery Leading Chinese import brand in Leading US cider business with 6.3% Exclusive distribution agreement with the US share of the US cider market, owned Small Town Brewery signed in 2015 Commentary by C&C with an o
Slide 64: PBC future mix to match industry – Net Revenue
PBC future mix to match industry – Net Revenue Source: Company results and budget. High-End includes Smalltown, Cider, Imports, craft and innovation
Slide 65: PBC the fastest $ sales growth in 2015
PBC the fastest $ sales growth in 2015 Source: Nielsen; Total US xAOC+Convenience+Exchanges 2015 Full Year
Slide 66: Slide 66
Slide 67: Break
Break 0930 Presentations 1130 Coffee 1150 Presentations 1320 Q&A 1350 Lunch 1430 Close C&C Group plc | Slide 67
Slide 68: Brand Led Wholesale
Brand Led Wholesale Tom McCusker | Ireland Managing Director Alastair Campbell | Scotland Managing Director C&C Group plc | Slide 68
Slide 69: Business Model | Right for the Future
Business Model | Right for the Future 1. Owning route to market = owning the customer relationship 2. Great portfolio – a brand for every occasion 3. Ability to access value in growing niche & premium segments 4. Ideal partner for world beer brand owners 5. Adding value to the customer through servi
Slide 70: Core Market Overview
Core Market Overview Characteristics C&C Model Fragmented Brand led wholesale On trade profit pool bias Strong brands in geographies Strong pub culture High per capita consumption Developing niche & premium range Heritage & provenance important Drive World Beers Local legislatures Full service offer
Slide 71: Model | Consumer & Customer Centric
Model | Consumer & Customer Centric Consumer driven range Unparalleled Investment customer reach Scale drives One Stop Shop competitive offering Order flexibility C&C Group plc | Slide 71
Slide 72: Ireland | Consumer & Customer Centric
Ireland | Consumer & Customer Centric Reach 9 depots / 13k customers / 75 Trucks 100 front line sales , 30 call centre On-Trade, Horeca, Convenience Scale 16m units sold per annum Flexibility 20k face to face calls 15k proactive calls a month via Call Centre One-Stop 2,400 SKUs stocked Investment Lo
Slide 73: Ireland | Dynamics
Ireland | Dynamics Market C&C Specifc 1 Consumers Changing consumers Weather 4 New Energy & New Entrants 3 x Draught brands Brand Competition 2 New Entrants Cider & Beer Take home premium too high 5 Pint Bottle highest margin LAD Craft proliferation 2 Formats Bottle & Draught Draught tap a target 3
Slide 74: Ireland | Grow the Business
Ireland | Grow the Business Bulmers Stabilisation Commercial Delivery Build Revenue Niche & Premium Brand Potential Excellence in World Premium C&C Group plc | Slide 74
Slide 75: Ireland | Bulmers Stabilisation
Ireland | Bulmers Stabilisation Compelling Economics 18 to 24’s On Trade Flavours, sponsorships Re-livery and and Light back bar Excellent in outlet Activation Take Home Pricing Distribution Appropriate Dual Stocking Premium C&C Group plc | Slide 75
Slide 76: Ireland | Niche & Premium Brand Potential
Ireland | Niche & Premium Brand Potential NI LAD On -6% Heverlee NI No 1 Premium +78% 8 khl Volume Stockists 15 khL brand including Scotland C&C Group plc | Slide 76 Source: Nielsen 52 weeks MAT Jan ’16 and Company data/Estimates
Slide 77: Ireland | Excellence in World Premium
Ireland | Excellence in World Premium No. 2 packaged lager: 18% share; growing in declining segment 91% distribution Outsells nearest competitor 13:1 No. 5 in Take Home and no can format! ABI Brands Wine – No 1 in Ireland NAB’S | No. 3 energy drink 10% Share and 900k cases Fastest growing +3
Slide 78: Ireland | Commercial Delivery
Ireland | Commercial Delivery New management Team Sales force In outlet fully activation operational and focused at the heart Speciality Optimise and brand CSC and on focus line ordering C&C Group plc | Slide 78
Slide 79: Scotland | Consumer & Customer Centric
Scotland | Consumer & Customer Centric Reach 7,500+ Direct Customers 40+ Field Sales Team 90 Trucks, 6 Depots, 5,000+ deliveries a week Flexibility On-line, Sales Call & Service Centre One-Stop Full range: 2,500+ SKUs Investment Loan book €35m, 1000+ outlets C&C Group plc | Slide 79
Slide 80: Scotland | Challenges Behind Us
Scotland | Challenges Behind Us ► Recent challenges easing Scottish Draught Beer • Drink Driving: -6% impact on draught Pre-Legislation First year of Legislation First 8 weeks • Business Integration Lapping Legislation Aug to Nov Dec to Feb Mar to May Jun to Aug Aug to Nov Dec to Jan ► New momentum
Slide 81: Scotland | Tennent's: At the heart of it
Scotland | Tennent’s: At the heart of it Tennent’s ► Strengthening brand health On-Trade Scotland - Share Growth: Top 10 Brands Latest 12 Months v. LY v. 2YA • Spontaneous Brand Awareness: 71% (18-24yo), +10% on Aug 2013 61.3% MAT 2YA MAT YA MAT TY ► On-Trade Growth 61.1% • On-Trade Share Gain = +0.
Slide 82: Scotland | Tennent's: Leveraging the Brand
Scotland| Tennent’s: Leveraging the Brand Brand Activation in outlet Takehome On-Trade Range Fount Extension Innovation into Glass Growing the core brand On-Trade Advertising, Glassware PR & Social Revision & Media POS C&C Group plc | Slide 82
Slide 83: Scotland | Building from the Core
Scotland | Building from the Core ► Magners: #2 Brand in On-Trade On-Trade Cider Volume & Value Trends in Scotland ► #2 Apple Cider in Off-Trade MAT to Dec v. 1 Year Ago ► Cider back in growth in On-Trade -0.1 Total Cider 5.0 ► Magners +9.7% MAT Value growth Strongbow Volume Trend Value Trend ► Inve
Slide 84: Scotland | A Winning Portfolio
Scotland | A Winning Portfolio Own Brands Speciality Brands World Premium Brands Customer & Consumer Softs Drinks Wines Spirits Driven Portfolio Cider Beer C&C Group plc | Slide 84
Slide 85: Scotland | Supporting the Free Trade
Scotland | Supporting the Free Trade ► Through Investment • On-Trade price freeze • Loan investment of €35m • Investing at Point-of-Purchase • Brand marketing – Drives consumer choice ► Through Service • Service excellence • Customer choice • Expert team • Flexible ordering C&C Group plc | Slide 85
Slide 86: Scotland | On the Front Foot
Scotland| On the Front Foot 1. Challenges behind us 2. Trading environment improving 3. Exceptional brand portfolio 4. The right model 5. Well placed for growth C&C Group plc | Slide 86
Slide 87: Kenny Neison, Group Chief Financial Officer
Kenny Neison Group Chief Financial Officer
Slide 88: FY16 Closing Update
FY16 Closing Update Positives Negatives Export volume +20% ‘Perfect Storm’ in Ireland & Scot. Earnings EBIT: €103m Magners Original CCB +1% US share loss Supply chain cost Receivables Securitization Agreement: c €25 m used Cash FCF/EBITDA > 90% (exc Exceptionals) Underlying conversion 70% 20.8m shar
Slide 89: FY17 Perspective
FY17 Perspective….. 1 Trading One Offs: Weather, drink driving Pabst in US Landscape Momentum: Export & CCB Stable platforms in core Earnings Recovery 2 Earnings Magners complete relaunch ‘In Outlet’ – Scot. & Ireland & Recovery Investment Funding for Niche premium Significant increase in spend Grow
Slide 90: Cost Reduction Plans
Cost Reduction Plans €15m Cost Saving Programme Actioned Plant Rationalisation: 4 to 2 Direct Delivery Activity Increase Support function consolidation 20% 40% Input Environment Outlook benign 20% Phasing Annualised impact FY18 €20m 20% Cost Manufacturing Distribution Maximum €10m Procurement Overhe
Slide 91: Cost Reduction Plans
Cost Reduction Plans Video | Billy Mason Video Clip C&C Group plc | Slide 91
Slide 92: Forward Earnings Profile
Forward Earnings Profile 1. Volume growth Magners Build on momentum Export Build on momentum Core Invest behind stable platforms & into improved environments US Growth through Pabst footprint 2. Margin expansion through cost reduction, net of re-investment 3. Underlying EBIT recovery + = FY17 Consen
Slide 93: Forward Cash & Leverage Profile
Forward Cash & Leverage Profile Return Capital AND Retain Financial Flexibility Exceptional Hold Leverage Seek to offset with asset disposal proceeds Cash @ Working Capital Expand receivable facility to cover Gleesons c.1.4x Capex Plastic line at Clonmel only major project Surplus Cash Cash Underlyi
Slide 94: Capital Allocation
Capital Allocation Preference Alternative Absent the Right Deal Invest for Growth 1. Return FY17 Surplus Cash: c.€40m 2. Leverage to 2x by FY18 and return capital (per June 2015) Right Economics Strategically Stack 3. Dividend cover to 2x Source: Company data/Estimates C&C Group plc | Slide 94
Slide 95: Capital Allocation | M&A
Capital Allocation | M&A Attractive Less Appealing Vertical into Route to market: E&W Vertical into retail: E&W Horizontal: E&W Bolt-On deals: Ireland & Scotland Non GB or Ireland assets Niche premium: GB & Ireland Underperforming assets Risky by scale transactions C&C Group plc | Slide 95
Slide 96: Capital Allocation | Discipline
Capital Allocation | Discipline Execution is less certain than opportunity Cheap Money Capital Discipline is Key Speculation Valuations Spirit Matthew Clark Are Craft Impact Carlsberg Peroni & Grolsch High Reality €130m of share buy back Last Orders’ Effect Sustained dividend increases Growth opport
Slide 97: Summary | How we see it
Summary | How we see it Difficult year behind us… now in right shape for a positive run ► Underlying earnings growth: boosted by investment & cost reduction ► EPS: enhanced through current share buy back activity ► Sustained cash generation ► Potential consolidation activity requires careful balance
Slide 98: Summary: Aligned to Shifting Consumer Preferences
Summary Aligned to Shifting Consumer Preferences Stephen Glancey | Chief Executive Officer
Slide 99: C&C | Heritage & Provenance
C&C| Heritage & Provenance C&C Group plc | Slide 99
Slide 100: C&C | Brand Provenance
C&C| Brand Provenance C&C Group plc | Slide 100
Slide 101: C&C | Inherent Cashflow Characteristics
C&C| Inherent Cashflow Characteristics €137 million 15 year average annual EBITDA Source: Company data/Estimates C&C Group plc | Slide 101
Slide 102: International Cider | Growth Opportunity
International Cider | Growth Opportunity Cider is still one of the fastest growing categories globally Global Cider Volume Excluding UK Market 14 mHl litres 12 +15% +12% 10 +11% +8% 8 +5% 6 4 2009 2010 2011 2012 2013 2014 Source: Canadean 2015 C&C Group plc | Slide 102
Slide 103: UK | The Home of Cider
UK | The Home of Cider 60m consumers €40bn alcohol industry London | A World City €20bn LAD market C&C Group plc | Slide 103
Slide 104: UK | Size isn't everything
UK | Size isn’t everything Revenue £m EBIT % Molson Coors 1,372 5.3 Heineken 1,224 4.2 ABI UK 1,159 3.0 Carlsberg UK 992 1.8 SAB Miller 262 11.9 Greene King 193 15.5 Marstons 169 12.2 Fullers 123 7.1 C&C Brands 57 13.1 Source: Published Annual Report Data; Company data/Estimates C&C Group plc | Slid
Slide 105: Scotland & Ireland
Scotland & Ireland ► Cultural challenges in FMCG model ► Future proofing the model C&C Group plc | Slide 105
Slide 106: Innovation is Key
Innovation is Key Innovation represents 4% of own brand volume Source: Company data/Estimates based on brands launched in last 5 years C&C Group plc | Slide 106
Slide 107: Capable Partner in World Beers
Capable Partner in World Beers Scale Scotland Ireland (FY14 – FY 16 Vol) (FY14 – FY 16 Vol) Deliver 512 khl of ABI brands ABI agency +10% ABI agency +118% Market -9% Market +1% Source: Company data/Estimates C&C Group plc | Slide 107
Slide 108: Investing | Smarter Ways of Investing
Investing| Smarter Ways of Investing C&C Group plc | Slide 108
Slide 109: USA | Pabst – The Right Partner
USA| Pabst – The Right Partner C&C Group plc | Slide 109
Slide 110: International | Volume Performance
International | Volume Performance International Volumes (khl) 500,000 c. 450 khl 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2005 2010 2015 Source: Company data / Estimates C&C Group plc | Slide 110
Slide 111: Short-Term Focus
Short-Term Focus Revenue growth Export volume Deliver cost in core markets growth reduction plan Cash Generation C&C Group plc | Slide 111
Slide 112: The Road Ahead
The Road Ahead 1. Cider growth category 2. Core brand strength 3. Consolidation cycle 4. Inherent balance sheet strength 5. Positive long-term outlook C&C Group plc | Slide 112
Slide 113: Q&A
Q&A