Remy Cointreau Sa · EURONEXT:RCO
Remy Cointreau Sa — H1 2009/10 Earnings Presentation
26 slides from Remy Cointreau Sa's earnings presentation, Nov 26, 2009
Slide 1: Interim Results
Interim Results Six months ended 30 September 2009 London 26 November 2009 Interim results to 30 September 2009 1
Slide 2: Review of Operations
Review of Operations Jean-Marie Laborde Chief Executive Officer Résultats annuels au 30 septembre 2008 2
Slide 3: Key figures: turnover, operating profit, net profit, net debt
Organic Published Turnover 361.9m (6.8)% (0.9)% of which own brands 318.9m (8.0)% (3.2)% Current operating profit 65.5m +2.0% +4.8% Current operating margin 18.1% 18.7% - Net profit (Group share) 39.8m Net financial debt 526.2m Net debt/EBITDA ratio 3.24 Interim results to 30 September 2009 3
Slide 4: Turnover change by brand, H1 and H2
% Change Published Organic H1 Cognac (4.8) (15.5) Liqueurs & Spirits (5.4) (7.7) Champagne (39.6) (40.8) Total Group brands (10.8) (17.2) Partner brands* 17.7 9.3 Total (7.7) (14.3) H2 Cognac 15.3 6.5 Liqueurs & Spirits 9.1 7.1 Champagne (43.0) (43.7) Total Group brands 2.0 (3.3) Partner brands 22.2
Slide 5: Turnover bridge Sept 08 to Sept 09
m Currency impact Activity 21.6 (24.9) Published -0.9% 365.2 Organic -6.8% 361.9 Sept 08 Sept 09 Interim results to 30 September 2009 5
Slide 6: Sales breakdown by brand and region
14.2% 16.1% 32.6% 31.8% 59.3% 20.2% 63.7% 53.2% 8.9% Cognac Liqueurs & Spirits Champagne 57.3% 31.5% 11.2% Americas Asia & Others Europe 30.5% 35.5% 34.0% Interim results to 30 September 2009 6
Slide 7: Current operating profit bridge
m Currency Volume/ Price A&P Impact of Overheads Others impact Mix new network +1.9 +3.0 +7.1 +6.6 +23.4 (1.2) (37.8) 62.5 65.5 Published +4.8% Sept 08 Organic +2.0% Sept 09 Operating 18.1% margin 17.1% (org. 18.7%) Interim results to 30 September 2009 7
Slide 8: Net profit Group share
Net Group share (11.8)% (17.6)% 48.3 42.6 48.3 39.8 Sept 08 Sept 09 Sept 08 Sept 09 Interim results to 30 September 2009 8
Slide 9: Cognac: volume sales and turnover
Volume sales (‘000 cases) Turnover (m) Published +7.4% Organic (14.5)% Organic (2.2)% 813.1 695.4 170.2 182.8 Sept 08 Sept 09 Sept 08 Sept 09 Interim results to 30 September 2009 9
Slide 10: Cognac: current operating profit bridge
Current operating profit (m) Currency Volume/ Price A&P Impact of Overheads Others impact Mix new network +3.5 +3.6 +4.4 +18.7 (0.5) (2.7) (25.1) 44.4 Published +4.3% 46.3 Organic -3.6% Sept 08 Sept 09 Operating 25.3% margin: 26.1% (org. 25.7%) Interim results to 30 September 2009 10
Slide 11: Liqueurs & Spirits: volume sales and turnover
Volume sales (‘000 cases) Turnover (m) Published +2.6% Organic (9.7)% Organic +0.4% 2,050.1 1,852.1 97.8 100.3 Sept 08 Sept 09 Sept 08 Sept 09 Interim results to 30 September 2009 11
Slide 12: Liqueurs & Spirits: current operating profit bridge
Current operating profit (m) Currency Volume/ Price A&P Impact of Overheads Others impact Mix new network +1.6 +1.0 +1.0 +3.2 (1.1) (1.0) (3.1) 23.0 Published +7.0% 24.6 Organic +11.3% Sept 08 Sept 09 Operating 24.5% margin 23.5% (org. 26.1%) Interim results to 30 September 2009 12
Slide 13: Champagne: volume sales and turnover
Volume sales (‘000 cases) Turnover (m) Published (41.7)% Organic (46.1)% Organic (42.7)% 388.4 209.3 61.4 35.8 Sept 08 Sept 09 Sept 08 Sept 09 Interim results to 30 September 2009 13
Slide 14: Champagne: current operating profit bridge
Current operating profit (m) Currency Volume/ Price A&P Impact of Overheads Others impact Mix new network 4.3 (0.9) (3.7) +1.4 +0.7 +0.6 +1.5 (0.3) (11.0) Sept 08 Sept 09 Operating margin: 7.0% N/A Interim results to 30 September 2009 14
Slide 15: Partner brands: turnover and operating profit
Turnover (m) Current operating profit (m) Organic +12.8% 35.8 43.0 4.3 (2.1) Sept 08 Sept 09 Sept 08 Sept 09 Interim results to 30 September 2009 15
Slide 16: Distribution network
Distributors Rémy Cointreau Europe Asia Canada America Australia Belgium/Luxembourg Japan Czech Republic/Slovakia 20% JV 50/50 Representative offices France Germany 80% Note: as % of turnover Interim results to 30 September 2009 16
Slide 17: Consolidated Interim Results
Consolidated Interim Results Hervé Dumesny Finance Director Résultats annuels au 30 septembre 2008 17
Slide 18: Turnover to current operating profit
(m) Sept 09 Sept 08 Turnover 361.9 365.2 Gross profit 207.6 205.1 in % 57.4 56.2 Sales & marketing expenses (108.1) (103.1) Administrative expenses (37.6) (40.8) Other income & expenses 3.6 1.3 Current operating profit 65.5 62.5 Current operating margin 18.1% 17.1% Interim results to 30 September 20
Slide 19: Current operating profit to operating profit
(m) Sept 09 Sept 08 Current operating profit 65.5 62.5 Other operating income & expenses (0.6) 19.4 Release of Maxxium provision - 37.0 Provision for writedown of Maxxium shares - (16.0) Others (0.6) (1.6) Operating profit 64.9 81.9 Interim results to 30 September 2009 19
Slide 20: Net average financial debt and financial charges
(m) Sept 09 Sept 08 (12.0) (11.4) Net borrowing cost Net average financial debt 647.4 477.0 Interest rate 3.71% 4.76% 1.6 (4.9) Other financial income & expenses Financial charges (10.4) (16.3) Interim results to 30 September 2009 20
Slide 21: Net profit
(m) Sept 09 Sept 08 Current operating profit 65.5 62.5 Operating profit 64.9 81.9 Financial charges (10.4) (16.3) Profit before tax 54.5 65.6 Taxation (16.7) (17.9) Share in profits of associated undertakings 1.6 0.6 Net profit from discontinued operations 3.2 - Net profit from continuing operations
Slide 22: Net debt and cash flow
(m) Sept 09 Sept 08 Net debt 526.2 437.1 Operating cash flow from continuing activities 16.5 19.9 Other (inc. capital expenditure) (24.7) (11.9) Cash flow before financing activities 8.2 8.0 Net debt ratio/EBITDA = 3.24 Interim results to 30 September 2009 22
Slide 23: Hedged rate and average EUR/US$ rate
1.43 1.43 1.41 1.39 Hedged rate 1.30 1.37 1.37 Average /US$ 1.28 2006/07 2007/08 2008/09 2009/10 Sept Interim results to 30 September 2009 23
Slide 24: Balance sheet: assets
(m) 2009 2008 Intangible assets 824.1 814.0 Investments in associates 57.6 49.6 Other investments 64.3 53.8 Deferred tax assets 19.3 19.3 Non-current assets 965.3 936.7 Inventories 929.1 841.7 Trade accounts receivable 248.2 289.4 Income tax recoverable 4.3 4.8 Derivative financial instruments 13.7
Slide 25: Balance sheet: equity and liabilities
(m) 2009 2008 Shareholders’ equity 965.9 901.1 Non-current liabilities 764.8 546.4 Current liabilities 528.9 735.8 Total equity and liabilities 2,259.6 2,183.3 Interim results to 30 September 2009 25
Slide 26: Conclusion: value, distribution network, cost control
In a difficult economic environment, Rémy Cointreau Maintains its value and long-term strategy Is now based on a distribution network that is largely controlled Continues to control its costs to guarantee the appropriate level of investment for its key brands … … and is thus poised to benefit fully