Remy Cointreau Sa · EURONEXT:RCO
Remy Cointreau Sa — H1 2024-25 Earnings Presentation
35 slides from Remy Cointreau Sa's earnings presentation, Nov 28, 2024
Slide 1: Rémy Cointreau 2024-25 Half-Year Results
@) REMY COINTREAU 2024-25 HALF-YEAR RESULTS November 28, 2024 Marie-Amélie de Leusse, Chairwoman Eric Vallat, CEO Luca Marotta, CFO
Slide 2: Introduction
Introduction Marie-Amélie de Leusse, Chairwoman
Slide 3: o o o o o
o o o o o 3
Slide 4: Business Review
Business Review Eric Vallat, CEO
Slide 5: H1 2024-25 key figures
A&P: -29.2%* -15.9%* 72.5% 18.4% of sales -17.6%* of sales 27.6% of sales -1.4 pts* OPEX: -6.8%* -0.5 pts* +0.3 pts as reported 26.5% of sales +1.0 pts as reported €533.7m €147.3m Due to rounding, the sum of values presented in this presentation may differ from totals as reported. Such differences a
Slide 6: H1 2024-25 Current Operating Margin by division: Cognac
H1 2024-25 Current Operating Margin by division Cognac: -1/.9% organic decrease in COP Sales €341.5m prcereretaetneetcenars Reported COP Margin: +2.1 pts : Organic change (%) -17.5% Volume / Price-Mix -14.2% /-3.3% -2.2 pts +2.3 pts COGS & Logistics:-07 pts { Price: flat Mix: -0.3 pts --- Organic CO
Slide 7: H1 2024-25 Current Operating Margin by division: Liqueurs & Spirits
H1 2024-25 Current Operating Margin by division Liqueurs & Spirits:-3.3% organic decrease in COP Sales €181.7m poeeeecteseececeeoeeeeees Reported COP Margin : +1.8 pts . Organic change (%) -12.0% | ’ : - 1.6 pt: +0.4 pts Volume / Price-Mix -12.6% / +0.6% ' —— Current Operating Profit €30.0m COGS & L
Slide 8: Financial Results
BRUICH Financial Results Luca Marotta, CFO
Slide 9: H1 2024-25 Current Operating Profit
H1 2024-25 Current Operating Profit End September (in €m) H12024-25 -H12023-24 Reported «= O”eanic % Cee Net Sales 533.7 636.7 -16.2% -15.9% +1.5% Gross Profit 386.9 459.9 -15.9% 175% 46.1% % of sales 72.5% 72.2% +03 pts -14 pts +3.0 pts Sales and marketing expense (180.3) (231.3) -22.0% -218% 413.2
Slide 10: H1 2024-25 Group Current Operating Margin
H1 2024-25 Group Current Operating Margin Reported COP Margin: +1.0 pts . +1.6 pts eal — COGS & Logistics:-10 pts Price: Alat Mix: -04 pts 26.6% \oeceseceeeeee Organic COP Margin: -0.5 pts o/w approx €42m cost savings H1 23/24 Gross A&P Distribution/Other Currency COP Margin Margin H1 24/25 COP Marg
Slide 11: H1 2024-25 Net profit
H1 2024-25 Net profit End September (in €m) H12024-25 H12023-24 Reported % es z ee z Current Operating Profit 1473 169.1 12.9% -176% -2.8% Other non-current income (expenses) 0.2 0.0 - - - Operating profit 147.5 169.1 -12.8% 175% 2.3% Net financial income (charge) (21.1) (15.7) +34,4% 439.8% - Pre-t
Slide 12: H1 2024-25 Net debt/Cash flow
HH] 2024-25 Net debt/Cash flow End September (in €m) H1 2024-25 H1 2023-24 Change Opening net financial debt (1 April) (649.7) (536.6) 113.1 Gross operating profit (EBITDA) 174.3 195.4 -21.2 WCR for eaux-de-vie and spirits in ageing process (3.4) (0.8) -2.6 Other working capital items (115.3) (172.1
Slide 13: H1 2024-25 Net financial expenses
H1 2024-25 Net financial expenses End September (in €m) H1 2024-25 H1 2023-24 Net debt servicing costs (16.7) (11.7) Net currency gain/loss (0.5) (1.4) Other financial expenses (net) (3.9) (2.6) (21.1) (15.7) Net financial income (charges) 13
Slide 14: FY 2024-25E Foreign exchange - Hedging impact
FY 2024-25E Foreign exchange - Hedging impact 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25E Average EUR/USD conversion rate 1.11 1.17 1.16 1.04 1.08 1.09 Average EUR/USD hedged rate 1.16 1.17 1.17 1.11 1.10 1.08 ‘Average EUR/CNY conversion rates 77S-—=—(i(iti‘ié‘iSSCSC*«S m4 «779 784 Average EUR/
Slide 15: Balance sheet as of September 30, 2024
Balance sheet as of September 30, 2024 (€m) Sept. j, \ 2024 Non-current 1,029 31% assets Current 2,296 68% assets excl. cash ow inventories 1973 58% Cash 49 1% Total Assets 3,374 100% Inventories/Assets 58% Sept. in 2023 1,023 29% 2,243 63% 1839 52% 278 8% 3,544 100% 52% Shareholders’ equity Current
Slide 16: Outlook
Outlook Eric Vallat, CEO
Slide 17: Our key priorities
©) REMY COINTREAU OUR KEY PRIORITIES Return to growth in the US 2. Keep leveraging our strengths to tackle adverse market conditions in China 3. Set the stage for Future growth: * Accelerate brand businesses beyond cognac * Explore growth opportunities beyond the US and China OUR APPROACH Foster inn
Slide 18: Return to growth for Cognac in the US
Return to growth for Cognac in the US 18
Slide 19: Fuel momentum in L&S amidst tougher market conditions
Fuel momentum in L&S amidst tougher market conditions THE BOTANIST Accelerate THE BOTANIST: BRUICHLADDICH Recruit BRUICHLADDICH 5 evTenFoRvouR CHANCE TOWN ALUKURY WATCH surcnersox « BRR 19
Slide 20: Recovery will take time, but we witness some promising signs
= Recovery will take time, but we witness some promising signs No smoke without Fire... Rémy Martin now outpacing its category Cointreau accelerates as #1 Branded Spirit in core cocktails 9 = L3M: -15% L3M: -12% [ L12M: -16% L12M: -22% 12M LM LeM 13M At the end of Sept. 2024 - In volume % SipSource
Slide 21: Leverage our strengths to tackle adverse market conditions in China
Leverage our strengths to tackle adverse market conditions in China 1050 MAF & 11.11 +DD% growth, above target RM No.1 brand in all platforms 3 23/24 YTD Oct E-commerce: 25% of sales in H1 V spletio 2 mD2T m TPP
Slide 22: Set the stage for future growth
Set the stage POINTREAU EMEA: Europe, Middle East and Africa SNAP: South & North of Asia for Future growth THE BOTANIST Build new RTMs to capture full potential Guangdong Extend geographical footprint 22
Slide 23: Foster innovations and protect A&P to prepare for recovery
Foster innovations and protect A&P to prepare for recovery to come... A&P 2024-25 (as % of sales) 2 REMY MARTIN’ H1 24-25 H2 24-25e £e REMY V, THE FRESH NEW SPIRIT BYREMYMARTIN >
Slide 24: While generating efficiencies to protect cash
. while generating efficiencies to protect cash One-off savings 45% of FY savings * A&P: 75% * OVERHEADS: 25% >€50m FY 24-25 o/w €42m in H1 Structural savings 24
Slide 25: The Group expects
The Group expects ORGANIC SALES TO DECLINE : BETWEEN -15% and -18% COP MARGIN OF BETWEEN 21% AND 22%, IN ORGANIC TERMS Mixed FX effects for the year Rémy Cointreau confirms its 2029-30 objectives 25
Slide 26: Appendices
9 BELLE DE BRILLET Appendices
Slide 27: Quarterly sales by division
Quarterly sales by division In€m Q1 24/25 Q1 23/24 Reported % Organic % Cognac 135.5 1551 “126% -12.2% Liqueurs & Spirits 75.8 95.0 -20.1%3 -20.4% Subtotal: Group Brands 211.3 250.0 15.5% 15.3% Partner Brands 57 7.5 -24.3.% 24.6% Total 217.0 257.5 15.7% 15.6% In€m Q2 24/25 Q2 23/24 Reported % Organi
Slide 28: H1 2024-25 sales
H1 2024-25 sales Cognac -17.5% Group Brands: -15.7% Organic sales growth by division Liqueurs & Spirits Group Cognac 34% (+1 pts) Mi Liqueurs & Spirits i Partner Brands Group sales breakdown 64% CT pts) Partner Brands: -25.0% 28
Slide 29: H1 2024-25 sales by region
H1 2024-25 sales by region Group: -15.9% 22% (1 pts) 34% (-3 pts) Group sales breakdown 44% (+4 pts) mAmericas gyAPAC EMEA Organic sales growth 29
Slide 30: Organic growth: at constant currency & scope
30 Organic growth: at constant Currency & scope
Slide 31: Foreign exchange - Hedging impact
Foreign exchange - Hedging impact 119 Hedged rate €/$ Average €/$ 1.04 2019-20 2020-21 2020-21 = 2021-22. 2021-22 = 2022-23 March Sept. March Sept. March Sept 1.04 2022-23 March 2023-24 Sept. a, 2023-24 March ——@ 1.09 Se 107 2024-25 Sept. 31
Slide 32: Key events during the half-year
Key events during the half-year April 2, 2024 August 28, 2024 September 25, 2024 October 1, 2024 Rémy Cointreau successfully renews and increases its syndicated credit line to €180 million Rémy Cointreau announced the successful renewal of its Revolving Credit Facility for an amount increased to €18
Slide 33: Post-closing events
Post-closing events October 8, 2024 November 28, 2024 Anti-dumping investigation into imports of European brandy entering China On 8 October 2024, MOFCOM announced that a deposit would be required, based on provisional anti- dumping duties, for all products entering China after 11 October 2024. For
Slide 34: Upcoming financial publications
Upcoming financial publications po Jan. 29, 2025 \ > April 30, 2025 a _ June 4, 2025 re, 2024-25 Q3 Sales 2024-25 Q4 Sales 2024-25 FY Results
Slide 35: Q&A
@) REMY COINTREAU Q&A