Davide Campari-milano N.v. · MIL:CPR
Davide Campari-milano — Merger or Acquisition (April 2009)
23 slides from Davide Campari-milano's merger presentation, Apr 8, 2009
Slide 1: Acquisition of Wild Turkey: The perfect fit
A Acquisition i iti off Wild Turkey T k The perfect fit 8 April 2009 Wild Turkey acquisition- 1
Slide 2: The perfect fit
The perfect fit Wild Turkey acquisition- 2
Slide 3: Gruppo Campari acquires Wild Turkey
Gruppo Campari acquires Wild Turkey • The number 1 premium Kentucky bourbon whiskey • A unique opportunity to enter the attractive and growing bourbon whiskey category • High quality brand franchise with strong upside potential • Further enhances the strength of our premium brands portfolio • Signif
Slide 4: Wild Turkey range
Wild Turkey range Flagsship brand Wild Turkey 101 proof Wild Turkey 80 proof Wild Turkey 86.8 proof (Australian variety) Variants Wild Turkey 101 proof 8-Year-Old Wild Turkey 101 proof 12-Year-Old Wild Turkey 101 proof Rye Kentucky Spirit 101 proof Small Batch Rare Breed Barrel proof R Russell’s ll’
Slide 5: The No.1 premium Kentucky bourbon brand worldwide
The No.1 premium Kentucky bourbon brand worldwide Wild Turkey is the benchmark bourbon brand in the industry Global Premium Kentucky Straight Bourbon Volume (2007) ('000s 9L cases) Source: IWSR Wild Turkey acquisition- 5
Slide 6: Successful track record
Successful track record • International brand sold in over 60 countries • Leading presence in key markets – Unites States (ca. (ca 570 570,000 000 cases annually annually, with strong focus on off off-premise) premise) – Australia (ca. 120,000 cases of straight bourbon annually and ca. 1.2 million c
Slide 7: ASW premium price positioning
ASW premium price positioning (1) (2) Notes: ((1)) ASW = American Straight Whiskey (2) Indicative U.S. shelf pricing per standard 750ml bottle Wild Turkey acquisition- 7
Slide 8: ASW: a dynamic spirits category
ASW: a dynamic spirits category Continuing category outperformance U.SS DISTILLED S SPIRITS S S VALUE G GROWTH O S MARKETSS (1) LAST IN NIELSEN S 52 2 WEEKSS 27.1% 6.4% 5.2% 5.1% 4.0% 3.8% 3.6% 3.5% 1.6% 1.0% Total: +3.7% ‐0.1% ‐1.3% 1 3% Irish Vodka Blended ASW Rum Canadian Tequila Prep. Gin Scotch
Slide 9: Positioned to exploit growth potential
Positioned to exploit growth potential • Renewed focus under Gruppo Campari on recruiting new consumers to the Wild Turkey franchise in the US and internationally • Real opportunity to grow the consumer base outside the brand’s U.S. Market – traditional areas of strength in the Bourbon Belt by recru
Slide 10: What is American Honey?
What is American Honey? • A successful new entry into the “premium premium modern cordial category category” – 100,000 nine liter cases – Honey and bourbon based liqueur – Smooth and flavorful – 71 proof – Versatile and easy to drink – Truly new and innovative product • Positioned for strong growth
Slide 11: Premium price positioning
Premium price positioning An attractive niche within the U.S. cordial category PREMIUM Price Positioning MODERN CORDIALS Premium (>US$20 Per 750ml bottle)) Standard (<US$20 e 750ml Per 50 bottle) Historical Growth Slow Growth (<3%) / Decline High Growth (>3%) Profile (5 YEARS) Source: Adams Liquor H
Slide 12: Wild Turkey to strengthen Campari portfolio
Wild Turkey to strengthen Campari portfolio Gruppo Campari 2008 Net sales Pro-forma 2008 Net sales breakdown breakdown RoW and Duty Free RoW and 4.8% Duty Free 9.1% Italy Italy Americas (1) 41.1% 37.4% 31.5% Americas (1) (1) Include: 32.9% USA 21 21.6% 6% ((1)) Include: Brazil 8.1 % USA 23.9% Other
Slide 13: Gruppo Campari's US business to be boosted by Wild Turkey acquisition
Gruppo Campari’s US business to be boosted by Wild Turkey acquisition Gruppo Campari to cover fastest growing spirits categories U.S DISTILLED SPIRITS VALUE GROWTH IN NIELSEN MARKETS (1) LAST 52 WEEKS 27.1% 6.4% 5.2% 5.1% 4.0% 3.8% 3.6% 3.5% 1.6% 1.0% Total: +3.7% ‐0.1% ‐1.3% Irish Vodka Blended ASW
Slide 14: Distribution of Wild Turkey
Distribution of Wild Turkey • USA: Gruppo Campari to immediately leverage its new combined portfolio in the US (strong overlaps with Skyy distribution) • Australia: acquisition provides the foundation for establishing own distribution platform while brand will be temporary distributed by Pernod Rica
Slide 15: Production of Wild Turkey
Production of Wild Turkey Distilling • Currently distilled in Lawrenceburg, Kentucky • Due to capacity limitations, in March 2008 started construction of a new, state-of- the-art distillery on vacant land at the existing site • Total T t l investment i t t off US$ 50 million illi (Pernod (P d Ricard
Slide 16: A financially attractive acquisition
A financially attractive acquisition Wild Turkey acquisition- 16
Slide 17: Acquisition overview
Acquisition overview Acquired business • Wild Turkey trademarks including American Honey liqueur • Inventory including aged bulk bourbon and finished goods • Distillery and warehouses in Kentucky Timetable • Antitrust approvals and closing expected prior to June 30, 2009 Price P i • Purchase price f
Slide 18: Acquisition overview (cont'd)
Acquisition overview (cont’d) Implied p acquisition q multiples p • 9.7x CAAP 08A (1) •12x expected EBITDA (1) (2) in the first 12 months following the deal’s closing p • Multiples paid p in line with historic multiples p p paid by y Gruppo pp Campari p for SKYY and Aperol p Goodwill • Goodwill gene
Slide 19: Acquisition financing
Acquisition financing • Acquisition fully financed via credit facilities underwritten by four major banks: Bank of America, BNP Paribas, Calyon and Intesa San Paolo • Available credit facilities could be utilised up to € 483 million, to fully cover the acquisition q financing g needs,, by y drawing
Slide 20: Impact on net debt
Impact on net debt Tentative debt maturity profile and pro forma net debt at 1/1/2009 26.6 804.7 (45.5) (€ million) 778.1 759.2 172.0 433 425.9 433 86.0 433 350 345.1 372.7 326.2 88.6 83.0 75.9 5.6 5.6 2010 2011 2012 2015 2018 Long term Cabo Wabo Total g gross Cash Opening pro-f orma debt put option
Slide 21: Conclusion
Conclusion Wild Turkey acquisition- 21
Slide 22: The perfect fit
The perfect fit • With Wild Turkey, Campari’s largest acquisition to date, the Group cements its position as a leading company in the US and international premium spirits markets • Demonstrates our commitment, in line with our strategy, of continuing growth in the profitable US spirits market as wel
Slide 23: For additional information
For additional information: Investor Relations - Gruppo Campari Phone: +39 02 6225 330; Fax: +39 02 6225 479 E-mail: investor.relations@campari.com; Website:http://investors.camparigroup.com/ www.camparigroup.com www.wildturkeybourbon.com Wild Turkey acquisition- 23
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