Remy Cointreau Sa · EURONEXT:RCO
Remy Cointreau Sa — FY2009/10 Earnings Presentation
26 slides from Remy Cointreau Sa's earnings presentation, Jun 10, 2010
Slide 1: Preliminary Results Year ended 31 March 2010
Preliminary Results Year ended 31 March 2010 London 10 June J ne 2010 1
Slide 2: Jean-Marie Laborde, Chief Executive Officer
Jean-Marie Laborde Chief Executive Officer Preliminary Results at 31 March 2010 2
Slide 3: 2009/10: Further Momentum
2009/10: 009/ 0 Further u t e Momentum o e tu Reorganised distribution Rebalanced ggeographic g p portfolio p Confirmed value strategy Unwavering support for our brands Continuing improvement in the financial position A “foreign exchange” environment becoming more favourable? Preliminary
Slide 4: Key Figures
Key ey Figures gu es Organic Published T Turnover €807 8 €807.8m 12 0% 12.0% 13 1% 13.1% ¾ of which own brands €708.9m 10.7% 11.8% Current operating profit €140.0m 7.2% 2.2% C Current t operating ti margin i 17 3% 17.3% 18 4% 18.4% - Profit before tax €110.2m Net profit (Group share) €86.3
Slide 5: 2009/10 Highlights
2009/10 009/ 0 Highlights g g ts Relevance of the new distribution network ¾ 80% of sales controlled directly, 400 recruited for distribution ¾ Increased control of pricing strategy ¾ Full effect on major emerging markets (China/South East Asia) Rebalanced geographic portfolio ¾ Three regions: A
Slide 6: Group Turnover
Group G oup Turnover u o e €m Currencyy impact Activity 85.5 82 8.2 Organic g +12.0% 714.1 807.8 March 09 March 10 Preliminary Results at 31 March 2010 6
Slide 7: Breakdown of Turnover (Group brands)
Breakdown ea do of o Turnover u o e (G(Group p brands)) 12.6% 14.6% 32.8% 31.6% 17 6% 17.6% 58.7% 69.8% 52.6% 9.7% Cognac Liqueurs & Spirits Champagne 57.3% 3% 29 1% 29.1% 13 6% 13.6% Ag geographic g p balance Americas Asia & Others Europe 29.8% 35.3% 34.9% Preliminary Results at 31 March 2010 7
Slide 8: Current Operating Profit
Current Cu e t Operating Ope at g Profit o t €m Impact p Currency Volume/ of new impact Mix Price A&P network Others +45.6 +0.2 (15.8) (1.6) ((6.8)) €13m (18.6) reinvestment in A&P 137.0 140.0 Organic +7.2% March 09 March 10 O Operating ti 17 3% 17.3% margin: 19.2% (org. 18.4%) Preliminary Results a
Slide 9: Cognac
Cognac Cog ac Volume sales (‘000 cases) Turnover (€m) +4 2% +4.2% Organic +28.2% +28 2% Published +30.1% 1,483 1,545 311.9 405.7 March 09 March 10 March 09 March 10 Preliminary Results at 31 March 2010 9
Slide 10: Cognac
Cognac Cog ac Current Operating Profit Impact ((€m)) Currencyy Volume/ of new impact Mix Price A&P network Others +33.8 +0.7 +1.8 (13.9) +7.9 (4.6) Organic g +37.9% 80.2 105.9 March 09 March10 Operating 26.1% margin: 25.7% (org. 27.6%) Preliminary Results at 31 March 2010 10
Slide 11: Liqueurs & Spirits
Liqueurs queu s & Spirits Sp ts Volume sales (‘000 cases) Turnover (€m) (5 8)% (5.8)% O Organic i +4.9% 4 9% Published +5.4% 4,008 3,773 196.0 206.5 March 09 March 10 March 09 March 10 Preliminary Results at 31 March 2010 11
Slide 12: Liqueurs & Spirits
Liqueurs queu s & Spirits Sp ts Current Operating Profit ((€m)) Impact Currency Volume/ of new impact Mix Price A&P network Others +11.6 +0.8 (1.6) (2.9) (1.2) (12.7) 57.6 Organic (7.8)% 51.6 March 09 March 10 O Operating ti 25 0% 25.0% margin: 29.4% (org. 25.8%) Preliminary Results at 31 March 2010
Slide 13: Champagne
Champagne C a pag e Volume sales (‘000 cases) Turnover (€m) (25.9)% Organic (23.7)% Published (23.2)% 775 574 125.9 96.7 March 09 March 10 March 09 March 10 Preliminary Results at 31 March 2010 13
Slide 14: Champagne
Champagne C a pag e Current Operating Profit ((€m)) Impact of new Currency Volume/ Price A&P network Others impact Mix (0.7) 13.9 +1.0 +0.2 (0.5) (13.9) (4 0) (4.0) (4.0) March 09 March 10 Operating margin: 11.0% (4.1)% (org. (3.4)%) Preliminary Results at 31 March 2010 14
Slide 15: Partner Brands
Partner a t e Brands a ds Turnover ((€m)) Current operating p g profit p (€m) ( ) O Organic i +22.1% 22 1% P bli h d +633% Published 633% Published +23.0% 80.3 98.9 0.6 4.4 March 09 March 10 March 09 March 10 Preliminary Results at 31 March 2010 15
Slide 16: Consolidated Preliminary Results
Consolidated Preliminary Results Véronique Gerbod Corporate Finance and Reporting Manager Preliminary Results at 31 March 2010 16
Slide 17: Analysis of Operating Profit
Analysis a ys s of o Operating Ope at g Profit o t (€m) March 10 March 09 Turnover 807.8 714.1 Gross profit 470.4 411.8 Sales & marketing expenses (254.3) (201.7) Administrative expenses (81.7) (80.7) Other income & expenses 5.6 7.6 Current operating profit 140.0 137.0 O Operating ti margin i 17 3%
Slide 18: Net Profit from Continuing Operations
Net et Profit o t from o Continuing Co t u g Operations Ope at o s (€m) March 10 March 09 Operating profit 132.5 151.9 Financial charges (22.3) (31.3) Profit before tax 110 2 110.2 120 6 120.6 Taxation (29.1) (37.5) Share in profit of associates (Dynasty Joint Venture) 4.9 3.0 Net profit from contin
Slide 19: Financial Charges
Financial a ca C Charges a ges (€m) March 10 March 09 Average net financial debt 642.8 477.8 Cost of net financial debt ((24.8)) ((26.5)) Interest and movement in value of vendor loan 7.9 9.2 Provisions update (0.1) (10.7) Exchange gain/(loss) (2.1) 4.7 Oth Others (3 2) (3.2) (8 0) (8.0) Other finan
Slide 20: Net Profit (Group Share)
Net et Profit o t (Group (G p Share) S ) (€m) March 10 March 09 Net profit from continuing operations 86.0 86.1 Profit/(loss) from discontinued operations 3.0 - Net p profit 89.0 86.1 Attributable to owners of the parent company 86.3 86.1 Preliminary Results at 31 March 2010 20
Slide 21: Financial Debt and Cash Flow
Financial a c a Debt ebt a and d Cas Cash Flow o (€m) March 10 March 09 Net debt 501.4 531.9 N t cash Net h flflow ffrom operating ti activities ti iti exc. M Maxxium i 88 3 88.3 164.1 Maxxium compensation and related expenses - (226.2) Proceeds from disposal of Maxxium shares 60.4 Net cash flow use
Slide 22: Change: Impact of Hedging
Change: C a ge Impact pact o of Hedging edg g 1.43 1.41 1.41 1.41 Hedged rate 1.30 1.37 1.37 Average €/US$ rate 1.28 2006/07 2007/08 2008/09 2009/10 March Preliminary Results at 31 March 2010 22
Slide 23: Balance Sheet – Assets
Balance a a ce S Sheet eet – Assets ssets (€m) March 10 March 09 Property, plant & equipment & intangible assets 838.5 826.8 Investments in associates 64.3 62.1 Other investments 71 2 71.2 61 1 61.1 Deferred tax assets 27.1 22.4 Non-current assets 1,001.1 972.4 Inventories 969.8 958.4 Trade receivab
Slide 24: Balance Sheet – Equity and Liabilities
Balance a a ce S Sheet eet – Equity qu ty a and d Liabilities ab t es (€m) March 10 March 09 Shareholders’ equity 1,018.5 968.9 Non-current liabilities 766.4 822.9 Current liabilities 531.9 527.5 Total equity and liabilities 2 316 8 2,316.8 2 319 3 2,319.3 Preliminary Results at 31 March 2010 24
Slide 25: Debt Structure
Debt ebt Structure St uctu e (€m) March 10 March 09 Long term Bonds 191.5 191.0 Syndicated y loan 344.8 370.0 Other confirmed credit lines - 30.0 Others 1.4 1.4 537.7 592.4 Short term Accrued interest not yet due 2.4 8.3 Syndicated loan 25.2 - Special purpose entities’ financial debt 6.2 7.9 Other f
Slide 26: Outlook for 2010/11
Outlook Out oo for o 2010/11 0 0/ In the current economic environment, Rémy Cointreau brands are now supported by a powerful distribution network is maintaining a strategic course for long-term success continues its ppremium brands’ ppricingg ppolicyy anticipates a high level of advertising