Pernod Ricard SA · EURONEXT:RI
Pernod Ricard SA — H1 2011/12 Earnings Presentation
94 slides from Pernod Ricard SA's earnings presentation, Feb 16, 2012
Slide 1: 2011/12 Half-year Sales and Results
2011/12 Half-year Sales and Results* Sales: +11%** Very strong Profit from recurring operations: +17%** performance Group share of net profit: +20% Upgraded Organic growth in profit from recurring operations guidance for full close to +8% FY 2011/12 Net debt***/EBITDA*** close to 3.9 at 30 June 2012
Slide 2: Presentation structure
Presentation structure - Overall analysis - Sales Analysis - Profit from recurring operations - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 2
Slide 3: Half-Year 2011/12 Highlights
Half-Year 2011/12 Highlights Continued strong growth in HY1 2011/12 Sales dynamism driven by the Top 14 and emerging markets(1) Improvement in margin while maintaining strong advertising and promotional support to our brands Accelerated growth in earnings and continued rapid deleveraging Key step in
Slide 4: Half-Year 2011/12 Key Figures: Sales
Half-Year 2011/12 Key Figures Sales: € 4,614 million (+8%, organic growth +11%) • Top 14: volumes +9%, sales +14%(1) • Emerging markets(2): sales +18%(1) • Mature markets in growth: sales +6%(1); restated for “French pre-buying”, +3%(1) Increase in gross margin to 62.1% (vs. 60.8% in HY1 2010/11) Co
Slide 5: Half-Year 2011/12 Key Figures: Earnings
Half-Year 2011/12 Key Figures Accelerated growth in earnings • Profit from recurring operations (PRO): € 1,379 million (+14%, organic growth +17%) • Group share of net profit from recurring operations: € 843 million (+16%) • Group share of net profit: € 800 million (+20%) Continued strong deleveragi
Slide 6: Technical effects
Half-Year 2011/12 Technical effects France excise duty hike (“French pre-buying”): • Average increase of 14% in excise duties as of 1 January 2012 has caused the trade to build stocks in HY1 2011/12 (3-4 months of stocks) • Estimated impact: additional € 98 million of sales and € 64 million of Profi
Slide 7: Economic Environment
Half-Year 2011/12 Economic Environment Continued strong dynamism in emerging markets Gradual improvement in the US Subdued growth in Western Europe 7
Slide 8: Currency Evolution
Half-Year 2011/12 Currency Evolution EUR EUR // USD USD 1.50 1.50 1.40 1.38 1.38 in in H1 H1 2011/12 2011/12 1.40 in in HY2 HY2 2010/11 2010/11 1.45 1.45 1.40 1.40 1.35 1.35 1.30 1.30 1.25 1.25 1.33 in HY1 2010/11 1.20 1.20 Contrasting evolution in HY1 2011/12 Appreciation of the USD vs. Euro at the
Slide 9: Presentation structure
Presentation structure - Overall analysis - Sales analysis - Profit from recurring operations - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 9
Slide 10: Change in HY1 2011/12 Sales
Change in HY1 2011/12 Sales +11% -2% -1% (99) (23) 454 4,282 +8% 4,614 HY1 10/11 Organic Forex Group HY1 11/12 Sales growth structure Sales Organic growth: +11% (Spirits +12%, Wine +5%), or +8% excl. “French pre- buying” Unfavourable forex impact primarily from: USD, INR, MXN Limited group structure
Slide 11: Focus on Q2 2011/12: Change in Sales
Focus on Q2 2011/12: Change in Sales +11% -1% -1% 258 (22) (13) 2,627 2,403 +9% Q2 10/11 Organic Forex Group Q2 11/12 Sales growth structure Sales Organic growth: +11% (Spirits +12%, Wine +5%), or +7% excl. “French pre- buying” Unfavourable forex impact primarily due to: USD, INR, MXN Limited group
Slide 12: Presentation structure
Presentation structure - Overall analysis - Sales analysis - by region - by brand - Key marketing & innovation initiatives - Profit from recurring operations - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 12
Slide 13: Organic sales growth by region
Organic sales growth by region FY HY1 Growth in all regions 2010/11(1) 2011/12(1) Asia-RoW +15% +18% Americas +5% +6% Europe (excluding France) +0% +2% France +4% +25% World +7% +11% Asia-RoW: continued double-digit growth Americas: accelerated growth Europe: buoyant Eastern Europe but challenging e
Slide 14: Asia-Rest of World: Analysis by category
Asia-Rest of World Analysis by category € million HY1 HY1 Organic ∆ 2010/11 2011/12 growth Sales 1,481 1,699 +15% +18% Continued strong dynamism Martell (+31%(1)): still the main growth driver, with a continued very favourable price/mix Top 14 Scotch whiskies (+17%(1)): 2nd growth driver, largely du
Slide 15: Asia-Rest of World: Analysis by country
Asia-Rest of World Analysis by country Continued strong dynamism China: very dynamic growth (+29%(1)) driven by Martell, Scotch and Jacob’s Creek. Principal trends: premiumisation and appetite for luxury India: local whiskies +26%(1). Top 14 (+39%(1)) boosted by Chivas and Absolut Other fast-growing
Slide 16: Americas: Analysis by category
Americas Analysis by category € million HY1 HY1 Organic ∆ 2010/11 2011/12 growth Sales 1,151 1,166 +1% +6% Sustained growth across the portfolio driven by the Top 14 Top 14 (+7%(1)): remains primary growth driver (> 2/3 of total regional growth), with Jameson, Perrier-Jouët, Martell and The Glenlive
Slide 17: Americas: United States market
Americas Analysis by country: United States US market: 2011 renews with historic long-term market trends Solid value Nielsen(1) NABCA(2) figures MAT Spirits: +2.7% at end of Dec. 2011 Wines: +3.4% +3.2% Premiumization Value Premium High End S. Premium driving growth(3) +0.9% +2.4% +5.3% +8.9% On-Tra
Slide 18: Americas: United States
Americas Analysis by country: United States Pernod Ricard continues to benefit from momentum behind premium brands Solid organic sales growth +5%, Top 14 +6%(1) (volume +3.5%, price- mix +2.4%(1)) In a competitive vodka category, Absolut is stable(1): • Numerous initiatives planned for HY2 2011/12:
Slide 19: Americas: Analysis by country
Americas Analysis by country Brazil: strong growth (+14%(1)) driven by the Top 14 (+34%(1)), particularly Absolut and Scotch whiskies. Good performance of local brands Mexico: net sales decline (-14%(1)). Implementation in progress of a new business model including portfolio rationalisation, improve
Slide 20: Europe (excluding France): Analysis by category
Europe (excluding France) Analysis by category HY1 HY1 Organic € million 2010/11 2011/12 ∆ growth Sales 1,235 1,232 0% +2% Growth largely driven by the Top 14 Top 14: principal growth driver (+4%(1)) led by Jameson, Chivas, Beefeater, The Glenlivet. Declines of Ballantine’s in Spain and Havana Club
Slide 21: Europe (excluding France): Analysis by country
Europe (excluding France) Analysis by country Increased bipolarisation between buoyant Eastern Europe and challenged Western Europe Eastern Europe: sustained, strong growth (+15%(1)) • Russia: main growth contributor of the region (+26%(1), Top 14 +30%(1)) driven by Jameson, Chivas, ArArAt and Olmec
Slide 22: France
France HY1 HY1 Organic € million 2010/11 2011/12 ∆ growth Sales 415 517 +25% +25% Exceptional growth in HY1 2011/12 due to pre-buying The underlying trend in the HY1 marks an improvement over a challenging Q1 (-1%(1)) impacted by adverse weather and a commercial conflict As expected, a boost in Net
Slide 23: Presentation structure
Presentation structure - Overall analysis - Sales analysis - by region - by brand - Key marketing & innovation initiatives - Profit from recurring operations - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 23
Slide 24: Organic sales growth by category
Organic sales growth by category % of FY HY1 total sales 2010/11 2011/12 Top 14 Spirits & Champagne 61% +10% +14% Priority Premium Wines 5% +0% +3% 18 key local spirits brands 17% +3% +12% Other 17% +1% +2% Total 100% +7% +11% Highly attractive growth mix, benefiting from “French pre-buying” Premium
Slide 25: Portfolio review: Top 14 Spirits & Champagne
Portfolio review Top 14 Spirits & Champagne Volumes: +9% Sales: +14%(1) % of Group sales: 61% (1) Organic growth 25
Slide 26: Top 14 Spirits & Champagne growth
Top 14 Spirits & Champagne Still main growth* driver, with significantly enhanced price/mix Top 14 Net Sales growth* Of which Volumes Of which 7 brands reported price/mix* Absolut 4% 3% 1% double-digit sales growth* Chivas Regal 13% 12% 2% Ballantine's 6% 5% 1% Impressive growth* on Ricard 32% 29% 3
Slide 27: Global Icons
Top 14 Spirits & Champagne Global Icons Volume growth +3% (sales +4%*) with growth in all regions US: Absolut is stable in a competitive category. Absolut Grapevine and Absolut Miami launches in Q3 Brazil, Africa & Middle East, Travel Retail, France, South Korea, India and Russia accounted for the m
Slide 28: Premium Spirits
Top 14 Spirits & Champagne Premium Spirits Americas (+15%*) delivered over 20% of brand growth Poland, 3rd export market in Europe, +31%* Ballantine’s 17 yo and above delivered ~half of brand growth* Significant decline in Spain +6%* France: volumes +25% enhanced by “French pre-buying” Strong growth
Slide 29: Premium Spirits
Top 14 Spirits & Champagne Premium Spirits Turnaround of the brand has been realized Acceleration, driven by innovation (Malibu cocktails, Malibu Black) Resilient growth in Western Europe (+2%*) Good growth in key markets: US (+5%*), UK (+7%*), Canada (+18%*) +5%* Innovation to remain strong: launch
Slide 30: Prestige Spirits & Champagne
Top 14 Spirits & Champagne Prestige Spirits & Champagne Outstanding growth (+28%*) primarily due to favourable price/mix (+17%*) exceeding volume growth Very attractive quality mix (XO +38%*, Noblige +30%*) +28%* Growth in focus markets outside Asia: US +23%* and Russia +12%* Strong development in k
Slide 31: Priority Premium Wines
Priority Premium Wines High value strategy and country diversification are proving successful Volumes -5% Sales 0%* Volumes +6% Sales +4%* Volumes: -1% Sales: +3%* Contribution after A&P**: +10%* % of Group sales : 5% Volumes +8% Sales +10%* Volumes -4% Sales +32%* * Organic growth ** Contribution a
Slide 32: 18 key local spirits brands
18 key local spirits brands Important growth contributors Volumes: +11% (+9% excl. “French pre-buying”) Sales: +12%* (+8%* excl. “French pre-buying”) % of Group sales: 17% Key local brands contributed 19% of Group organic sales growth Continued dynamism of Indian whiskies (+26%*): Royal Stag, Blende
Slide 33: Presentation structure
Presentation structure - Overall analysis - Sales analysis - by region - by brand - Key marketing & innovation initiatives - Profit from recurring operations - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 33
Slide 34: Innovation in Ultra Prestige & Luxury
Innovation in Ultra Prestige & Luxury Ultra Prestige Luxury Product Innovation Chanteloup Perspective L’Or de Jean Martell A Tribute to Honour RSP € 250 RSP € 2,500 RSP US$ 200,000 Communication Harrods Collaboration Press Advertising Press Advertising 34
Slide 35: Innovate to build further on strong momentum
Innovate to build further on strong momentum Creative TV campaign awarded at Cannes Advertising Product Innovation Festival Hawk of Achill – latest episode of The Legendary Tales of John Jameson … extended in the digital world Jameson Select Reserve Black Barrel www.jameson1780.com launched in NYC U
Slide 36: Solid line of initiatives continuing through H2
Solid line of initiatives continuing through H2 Digital initiatives Product innovation Global Limited editions ABSOLUT Blank ABSOLUT Mode ABSOLUT Mode Edition – launched in 61 markets Targeted initiatives Local Limited Bold and impactful editions media ABSOLUT Outrageous ABSOLUT Blank ABSOLUT Rumor
Slide 37: A brand using 360° innovation
A brand using 360° innovation Product Innovation An extensive range aiming at meeting new consumer needs. Digital Limited Initiatives Editions MALIBU Music Mixer with more then MALIBU Winter Edition 360,000 downloads. launched in 37 markets. MALIBU SUNSHINE MALIBU SUNSHINE app enabling introducing a
Slide 38: Digital at the heart of a fully-integrated campaign
Digital at the heart of a fully-integrated campaign Here’s to Real Friends 60” Trailer 30” Trailer Print OOH Digital seeding program Digital banners PR push Media buying (on/offline) Campaign micro site Launch of Share/ seed Global/Local on Facebook Chivas You Tube Channel 38
Slide 39: Leaving a Global Creative Impression
Leaving a Global Creative Impression Global digital stunt activity Enhanced advertising, fresh creative Localised digital platforms concepts promote loyalty and continue the conversation 39
Slide 40: Build consumer engagement beyond traditional media
Build consumer engagement beyond traditional media Advertising Promotion Major Event Social Sponsorship Networks New phase of ‘Cool Harvest’ Australian Open Tennis Facebook App ‘True Character’ activation featuring sponsorship ‘Together we Sparkle’ campaign Naomi Watts An innovative approach in wine
Slide 41: Other digital initiatives
Other digital initiatives ‘Here’s to Big Bear’ ‘Here’s to Twinkle’ Gift of Beauty Sales Activation Blank App & Blank Live Society Online First animated tattoo by K.A.R.L. (broadcast live) Delicioso Brunch Club App 41
Slide 42: Other key marketing initiatives
Other key marketing initiatives Limited New Product Editions Packaging Innovation New Advertising Sponsorships 42
Slide 43: Presentation structure
Presentation structure - Overall analysis - Sales analysis - Profit from recurring operations - Summarised income statement - Analysis by geographic region - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 43
Slide 44: Summary income statement
Summary income statement HY1 HY1 Excl. “French € millions 10/11 11/12 ∆ Organic ∆ pre-buying” Sales 4,282 4,614 +8% +11% +8%* Gross margin after logistics costs 2,604 2,863 +10% +12% GM / sales 60.8% 62.1% Advertising & promotion expenditure (765) (817) +7% +8% A&P / sales 17.9% 17.7% 17.8% Contribu
Slide 45: Foreign Exchange/Group structure effect on PRO
Foreign Exchange/Group structure effect on PRO € millions +208 (6) (34) +17% 0% -3% 1,379 1,210 PRO HY 10/11 Organic growth Group Structure Forex Impact PRO HY 11/12 Limited Group Structure impact on PRO primarily due to disposals in HY1 2010/11 of certain New Zealand activities Unfavourable forex e
Slide 46: Gross margin after logistic costs
Gross margin after logistic costs HY1 Organic HY1 € millions 10/11 growth 11/12 Gross margin after logistic costs 2,604 +12% 2,863 GM/sales 60.8% 62.1% +124bps Strong improvement in GM/sales ratio: approximately +90bps excluding “French pre-buying” Increase is due notably to: • Positive portfolio mi
Slide 47: Advertising & promotion expenditure
Advertising & promotion expenditure HY1 Organic HY1 € millions 10/11 growth 11/12 A&P expenditure (765) +8% (817) A&P/sales 17.9% 17.7% -15bps Continued strong investment behind our brands (+8%*) Stable A&P/sales ratio excluding “French pre-buying” Approximately ¾ of A&P spend behind the Top 14 Prio
Slide 48: Structure costs
Structure costs HY1 Organic HY1 € millions 10/11 growth 11/12 Structure costs* (629) +8% (667) Structure costs/sales 14.7% 14.5% * Structure costs: Selling expenses + General and Administrative + Other income/(expenses) -22bps Structure costs up +8%*, slightly below organic sales progression excludi
Slide 49: Profit from recurring operations
Profit from recurring operations HY1 Organic HY1 € millions 10/11 growth 11/12 Profit from recurring operations 1,210 +17% 1,379 PRO/sales 28.3% 29.9% +162bps Restated for “French pre-buying”, PRO organic growth is still spectacular: +12%* Sharp expansion of PRO/sales ratio in HY1 2011/12 (approxima
Slide 50: Presentation structure
Presentation structure - Overall analysis - Sales analysis - Profit from recurring operations - Summarised income statement - Analysis by geographic region - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 50
Slide 51: Contribution to PRO growth by region
Contribution to PRO growth* by region € millions 116 19 17 55 1,418 +27% +6% +5% +47% 1,210 PRO HY 10/11 Asia-ROW Americas Eur. excl. France PRO HY 11/12 France on a like-for- like basis All regions renewed their contribution to organic growth of Profit from Recurring Operations, with in particular:
Slide 52: Asia-Rest of World
Asia-Rest of World € millions HY1 HY1 ∆ Organic 10/11 11/12 growth Sales(1) 1,481 1,699 +15% +18% Gross margin after logistics costs 866 1,025 +18% +21% GM / sales 58.5% 60.4% Advertising & promotion expenditure (282) (317) +12% +14% A&P / sales 19.1% 18.7% Profit from recurring operations(2) 424 52
Slide 53: Americas
Americas HY1 HY1 Organic € millions 10/11 11/12 ∆ growth Sales 1,151 1,166 +1% +6% Gross margin after logistics costs 713 721 +1% +6% GM / sales 61.9% 61.8% Advertising & promotion expenditure (200) (204) +2% +5% A&P / sales 17.4% 17.4% Profit from recurring operations(1) 339 338 0% +6% PRO / sales
Slide 54: Europe (excluding France)
Europe (excluding France) HY1 HY1 Organic € millions 10/11 11/12 ∆ growth Sales 1,235 1,232 0% +2% Gross margin after logistics costs 722 731 +1% +3% GM / sales 58.5% 59.3% Advertising & promotion expenditure (181) (176) -3% -2% A&P / sales 14.6% 14.3% Profit from recurring operations(1) 328 339 +3%
Slide 55: France
France HY1 HY1 Organic € millions 10/11 11/12 ∆ growth Sales 415 517 +25% +25% Gross margin after logistics costs 303 386 +27% +27% GM / sales 73.1% 74.7% Advertising & promotion expenditure (102) (121) +18% +18% A&P / sales 24.6% 23.3% Profit from recurring operations(1) 118 174 +47% +47% PRO / sal
Slide 56: Analysis by geographic region
Analysis by geographic region HY1 10/11 HY1 11/12 10% 11% 34% 37% Sales 29% 27% 27% 25% HY1 10/11 HY1 11/12 Profit from 10% 13% 35% 38% recurring 27% 25% operations 28% 25% Asia-RoW Americas Europe (excl. France) France Asia-RoW continues to strengthen its status as the Group’s largest contributor t
Slide 57: Share of Emerging Markets
Share of Emerging Markets* HY1 11/12 Organic growth in emerging markets* 39% Sales 61% +18% HY1 11/12 Profit from 39% Recurring 61% +22% Operations Emerging Markets* Mature Markets Emerging markets* continue to deliver fast and profitable growth * List of emerging markets available in appendix 57
Slide 58: Presentation structure
Presentation structure - Overall analysis - Sales analysis - Profit from recurring operations - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 58
Slide 59: Financial income/(expenses) from recurring operations
Financial income/(expenses) from recurring operations € millions HY1 10/11 HY1 11/12 ∆ Net financing costs (232) (228) +4 Other financial income/(expenses) from recurring operations (11) (5) +6 Financial income/(expenses) from recurring operations (243) (233) +10 € 10 million improvement in financia
Slide 60: Free Cash Flow
Free Cash Flow HY1 HY1 € millions ∆ 10/11 11/12 Profit from recurring operations 1,210 1,379 169 Amort., dep. and prov. movements and other 91 81 (10) Self-financing capacity from recurring 1,301 1,459 158 operations Decrease/(increase) in WCR* (158) (305) (147) Financial income/(expenses) and taxes
Slide 61: Free Cash Flow commentary
Free Cash Flow Strong generation of FCF from recurring operations: • Growth in profit from recurring operations • WCR variation(1) higher by € 147 million: ⌐ Increase of strategic inventories variation (+€ 28 million) to sustain whisk(e)y and cognac growth ⌐ Increase of operating WCR(1)(2) variation
Slide 62: Change in net debt
Change in net debt 564 9,410 € millions 9,038 (607) 383 32 8,846 € (192) million Net Debt at Disposals/acquisitions of Dividends FCF Net Debt at Translation Net Debt at 30 June 11 treasury shares + other 31 Dec 11 adjustment 31 Dec11 before translation adjustment Decline in debt before translation a
Slide 63: Change in Net Debt/EBITDA ratio
Change in Net Debt/EBITDA ratio Closing rate Average rate Change in EUR/USD rate: 10/11 11/12 1.45 1.29 1.36 1.39 Ratio at 30 June 2011 4.2 4.4 EBITDA & cash generation excluding (0.5) (0.5) forex and group structure effects Group structure 0.0 (0.5) 0.0 Forex impact 0.3 Ratio at 31 December 2011 4.
Slide 64: Debt refinancing
Debt refinancing Post upgrade to Investment Grade by Moody’s and S&P, Pernod Ricard accelerated its refinancing on the US bond market… • USD 1.5 billion issuance in October 2011 • USD 2.5 billion issuance in January 2012 (post HY1 2011/12) …with historically low rates… • October issuance: coupon 4.4
Slide 65: Debt at December 2011
Debt at 31 December 2011 At 31 December 2011, Pernod Ricard held € 0.9 billion in cash and € 1.5 billion in undrawn credit lines Debt maturity has been extended thanks to recent bond issuances 5 € billion 4 Cash Pro forma* debt maturity Other Debts Commercial Paper 3 Bonds Syndicated Credit 2 0.9 1
Slide 66: Gross debt hedging at December 2011
Gross debt hedging at 31 December 2011 € millions Fixed Collars Variable 10,305 10 000 8 000 56% 70 % 46% 6 000 4 000 51% 83 % 9% 2 000 16% 3% 33 % (2)% 21% 14 % - EUR USD Others Total Debt breakdown* by currency consistent with that of EBITDA Increased proportion of fixed rate debt (including colla
Slide 67: Income tax
Income tax Corporate income tax: € (233) million Corporate income tax on items from Corporate income tax on recurring operations: non-recurring items: € (283) million - Rate: 24.7% € 50 million Effective corporate income tax rate* of 24.7% compared to 23.1% in HY1 2010/11 with a significant impact f
Slide 68: Group Share of NPRO and net earnings per share
Group Share of NPRO and net earnings per share from recurring operations HY1 HY1 ∆ € millions and €/share 10/11 11/12 Profit from recurring operations 1,210 1,379 +14% Financial income/(expenses) from recurring operations (243) (233) -4% Income tax on items from recurring operations (224) (283) +26%
Slide 69: Presentation structure
Presentation structure - Overall analysis - Sales analysis - Profit from recurring operations - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 69
Slide 70: Non-recurring items
Non-recurring items € millions HY1 11/12 Capital gains and losses on disposals and asset valuations 12 Restructuring costs & Other non-recurring income and expenses (65) (primarily provision movements) Other operating income and expenses (53) Other non-recurring financial items (40) Other operating
Slide 71: Group share of net profit
Group share of net profit HY1 HY1 € millions ∆ 10/11 11/12 Profit from recurring operations 1,210 1,379 +14% Other operating income and expenses (29) (53) NA Operating profit 1,181 1,326 +12% Financial income/(expenses) from recurring operations (243) (233) -4% Other non-recurring financial items 8
Slide 72: Presentation structure
Presentation structure - Overall analysis - Sales analysis - Profit from recurring operations - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 72
Slide 73: Conclusion for the HY1 2011/12
Conclusion for the HY1 2011/12 Excellent HY1 2011/12 Continuation of main business trends of FY 2010/11: strong growth of emerging markets, premiumisation... Operating margin significantly improved Further significant deleveraging and key progress on the road to refinancing the July 2013 maturity So
Slide 74: Outlook for FY 2011/12
Outlook for FY 2011/12 Pernod Ricard’s macroeconomic scenario: marked trends by geography expected for the next 6 months • Continued strong dynamism from emerging markets: Asia, Eastern Europe, LatAm, Africa • Gradual improvement in the US • Subdued growth in Western Europe, with continued recession
Slide 75: Guidance for full FY 2011/12
Guidance for full FY 2011/12 Pernod Ricard’s main assets (premium portfolio and global distribution network) are key competitive advantages to benefit from the expected environment We will continue to invest behind our brands and our key markets to support the key driver of premiumisation Upgraded g
Slide 76: Next communications
Next communications Date Event Speaker Tuesday 20 March 2012 Asia conference call Pierre Coppéré Thursday 26 April 2012 3rd quarter 2011/12 sales Gilles Bogaert Monday 25 June 2012 Europe conference call Laurent Lacassagne 76
Slide 77: Pernod Ricard
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Slide 78: Appendices
‘oe ani Con) Pernod Ricard Créaleurs de cowmivialité Appendices
Slide 79: Emerging markets
Emerging markets Asia-Rest of World Americas Europe Algeria Argentina Albania Cambodia Aruba Armenia Cameroon Bolivia Azerbaijan China Brazil Balkans Egypt Caribbean Cesam Belarus Gabon Chile Bosnia India Colombia Bulgaria Indonesia Costa Rica Croatia Iran Cuba Czech Republic Iraq Dominican Republic
Slide 80: Strategic brands organic growth
Strategic brands organic growth Net Sales Of which of which Top 14 growth* volumes price/mix Chivas Regal 13% 12% 2% Absolut 4% 3% 1% Ballantine's 6% 5% 1% Jameson 25% 20% 5% Ricard 32% 29% 3% Malibu 5% 7% -3% Beefeater 2% 3% -1% Kahlua -3% -2% -1% Havana Club 0% 0% 0% Martell 28% 10% 17% The Glenli
Slide 81: Sales analysis by region
Sales analysis by region Net Sales Q1 2010/11 Q1 2011/12 Change Organic Growth Group Structure Forex impact (€ millions) France 164 8.7% 162 8.1% (2) -1% (2) -1% (0) 0% 0 0% Europe excl. France 517 27.5% 524 26.4% 7 1% 17 3% (4) -1% (6) -1% Americas 482 25.7% 508 25.6% 26 5% 66 14% 1 0% (41) -8% Asi
Slide 82: Summary Consolidated Income Statement
Summary Consolidated Income Statement (€ millions) 31/12/2010 31/12/2011 Change Net sales 4,282 4,614 8% Gross Margin after logistics costs 2,604 2,863 10% A&P expenditure (765) (817) 7% Contribution after A&P expenditure 1,839 2,046 11% Structure costs (629) (667) 6% Profit from recurring operation
Slide 83: Minority interests and other
Minority interests and other € millions HY1 10/11 HY1 11/12 Minority interests (19) (20) Other 1 1 Minority interests notably include: • Havana Club International • Corby (Canada) • JBC (South Korea) 83
Slide 84: Profit from recurring operations by region 1/2
Profit from recurring operations by region 1/2 World (€ millions) HY1 2010/11 HY1 2011/12 Change Organic Growth Group Structure Forex impact Net sales (Excl. T&D) 4,282 100.0% 4,614 100.0% 332 8% 454 11% (23) -1% (99) -2% Gross margin after logistics costs 2,604 60.8% 2,863 62.1% 259 10% 320 12% (5)
Slide 85: Profit from recurring operations by region 2/2
Profit from recurring operations by region 2/2 Europe excluding France (€ millions) HY1 2010/11 HY1 2011/12 Change Organic Growth Group Structure Forex impact Net sales (Excl. T&D) 1,235 100.0% 1,232 100.0% (3) 0% 21 2% (10) -1% (14) -1% Gross margin after logistics costs 722 58.5% 731 59.3% 9 1% 19
Slide 86: Foreign Exchange Effect
Foreign Exchange Effect On Profit Forex impact HY1 2011/12 Average rates evolution On Net from (€ million) Sales Recurring 2010/11 2011/12 % Operations US Dollar USD 1.33 1.38 4.2% (39) (27) Indian Rupee INR 60.46 66.60 10.1% (25) (8) South African Rand ZAR 9.42 10.50 11.4% (5) (3) Turkish Lira TRL
Slide 87: Sensitivity of profit and debt to EUR/USD exchange rate
Reminder of sensitivity of profit and debt to EUR/USD exchange rate Estimated impact of a 1% depreciation of the USD and linked currencies(1): • € (15) million on profit from recurring operations (PRO) and + € 2 million on financial expenses, i.e. € (13) million on pre-tax profit from recurring oper
Slide 88: Group Structure Effect
Group Structure Effect On Profit from Group structure HY1 2011/12 On Net Sales Recurring (€ million) Operations New Zealand assets (12) (2) Other (11) (4) Total Group Structure (23) (6) 88
Slide 89: Consolidated Balance Sheet 1/2
Consolidated Balance Sheet 1/2 Assets 30/06/2011 31/12/2011 (€ millions) (Net book value) Non-current assets Intangible assets and goodwill 16 332 17 330 Property, plant and equipment and investments 2 156 2 316 Deferred tax assets 1 459 1 605 Total non-current assets 19 947 21 251 Current assets In
Slide 90: Consolidated Balance Sheet 2/2
Consolidated Balance Sheet 2/2 Liabilities and shareholders’ equity 30/06/2011 31/12/2011 (€ millions) Shareholders’ equity 9 284 10 459 Minority interests 190 188 of which profit attributable to minority interests 32 20 Shareholders’ equity – attributable to equity 9 474 10 647 holders of the paren
Slide 91: Working capital analysis
Working capital analysis ∆ December HY1 2011/12 December December FX effects and HY1 2010/11 (€ millions) June 2011 2011 WC variation 2010 2011 reclassifications WC variation vs June 2011 Work-in-progress 3,098 3,150 3,286 136 115 21 (7) Trade receivables before factoring/securitization 2,362 1,466
Slide 92: Change in net debt
Change in net debt (€ millions) 31/12/2010 31/12/2011 Self-financing capacity 1 225 1 363 Decrease (increase) in working capital requirements (142) (296) Financial result and tax cash (366) (365) Net acquisitions of non financial assets (78) (95) Free Cash Flow 639 607 Disposals/acquisitions assets
Slide 93: Bond issuances
Bond issuances Currency Par value Coupon Issue date Maturity date € 550 M 4.625% 06/12/2006 06/12/2013 € 800 M 7.000% 15/06/2009 15/01/2015 Euro € 1,200 M € 1,000 M $ 201 M WIP 4.875% 5.000% Libor 3M + spread 18/03/2010 15/03/2011 21/12/2010 18/03/2016 15/03/2017 21/12/2015 $ 1,000 M 5.750% 07/04/20
Slide 94: Number of shares used in EPS calculation
Number of shares used in EPS calculation Thousands HY1 10/11 HY1 11/12 Number of shares in issue at end of period 264,431 265,062 Weighted number of shares in issue (pro rata temporis) 264,293 264,862 Number of treasury shares (1,797) (2,254) Dilutive impact of stock options 2,261 1,755 Number of sh