Remy Cointreau Sa · EURONEXT:RCO
Remy Cointreau Sa — H1 2022-23 Earnings Presentation
42 slides from Remy Cointreau Sa's earnings presentation, Nov 24, 2022
Slide 1: Rémy Cointreau 2022-23 H1 Results
@) REMY COINTREAU 2022-23 H1 Results November 24, 2022
Slide 2: Introduction
Introduction Marie-Amelie de Leusse, Chairman
Slide 3: H1 2022-23 - Performance summary
H1 2022-23 - Performance summary
Slide 4: Key highlights
Key highlights Eric Vallat, CEO
Slide 5: Rémy Cointreau awarded most responsible French company in Food & Beverage
Rémy Cointreau is awarded as the most responsible French company in the Food & Beverage sector @) REMY COINTREAU # | French Company in Food and Beverage sector Versus #2 last year First carbon neutral bar opened in Shanghai by Rémy Cointreau Source: Le Point - Statista
Slide 6: H1 key performance figures
+21.1%* +24.2%* +27.2%* +64.7% 71.9% of sales 36.8% of sales 4.40 euros +1.8 pts* +1.7 pts* +54.6%* vs. 3Y +3.3 pts* vs. 3Y +7.7 pts* vs. 3Y > x2 vs. 3Y Due to rounding, the sum of values presented in this presentation may differ from totals as reported. Such differences are not material. 6 (*) Orga
Slide 7: Progress towards our ambition
Progress towards our ambition ; \ Highest retail price tier in Great products Become the worldwide leader each category >»> >»> Desirable brands in exceptional spirits Best-in-class value for Unique customer experience Rémy Cointreau and its clients 7 XN NX Gross Margin : 72% in 2029-30 COP Margin :
Slide 8: Group transformation well under way
Group transformation well under way t 2 n fe cousxm —COINTREAU by Z = = Ou ou ee aS)) BRUICHLADDICH ae = PORTFOLIO 2 ler zz ! 5 a a THE BOTANIST 3° s 3 DZ wn BO g BUILD IMPLEMENT ACHIEVE STRATEGIC INCREASE CLIENT-CENTRIC PORTFOLIO RESPONSIBLE PRIORITIES VALUE PER CASE MODEL MANAGEMENT GROWTH CAPABIL
Slide 9: Continued progress on strategic priorities: Increase value per case
Continued progress on strategic priorities Increase value per case Share of Cognac “intermediates” over last 3 years H1 2022-23 vs H1 2019-20 >»> Group Price-Mix effects +8 pts worldwide On sales: +11.4 pts © non man On GM: +1.5 pts Fee - + RA
Slide 10: Continued progress on strategic priorities: Enhance portfolio management
Continued progress on strategic priorities Enhance portfolio management Circa +30% in H1 2022-23 Circa +25% in H1 2022-23 DAN LEVY-APPROVED MARGARITAS YOUR GUESTS WILL LOVE Unlocked growth potential of Global Priority Brands Transformation on its way for Regional Power Brands 10
Slide 11: Continued progress on strategic priorities: Implement client-centric model
Continued progress on strategic priorities Implement client-centric model Pioneering customer centricity with Louis XII| > Retail * 8 boutique secured in Chengdu (China), due to open in December 2022 * Refurbishment of Beijing SKP boutique in progress * Leveraging Louis XI!| The Drop launch to grow
Slide 12: Business review
Business review Eric Vallat, CEO
Slide 13: Topline growth relies on two solid pillars
H1 2022-23- Topline growth relies on two solid pillars Organic sales growth Cognac Liqueurs & Spirits Group Brands: +22.0% 2% Partner brands: -13.0% Group Cognac Hi Liqueurs & Spirits I Partner Brands Group sales breakdown 73% +21.1% 13
Slide 14: Strong double-digit growth across all regions
H1 2022-23- Strong double-digit growth across all regions Group: +21.1% Group sales breakdown mAPAC = mEMEA Americas Organic sales growth
Slide 15: Current Operating Margin by division: Cognac
H1 2022-23 Current Operating Margin by division Cognac: +35.7% of organic growth in COP Sales €638.1m ee ~ Reported COP/Sales : +6.5 pts ————--— : Organic change (%) +22.4% Volume /Price-Mix +6.4% / +16.0% +04 pts Current Operating Profit €299.7m Volume: +0.5 pts Price/Mix: +23 pts Organic COP/Sales
Slide 16: Current Operating Margin by division: Liqueurs & Spirits
H1 2022-23 Current Operating Margin by division Liqueurs & Spirits:-27.5% of organic performance in COP Sales €214.5m Organic change (%) +20.7% Volume / Price-Mix +16.8% /+3.9% Current Operating Profit €31.9m COP/Sales Margin Other +1.0 pt +08 pt: Acsetiiestenciol ad | — = Price/Mix: -18 pts -- Orga
Slide 17: Financial results
Financial results Luca Marotta, CFO
Slide 18: H1 2022-23 Current Operating Profit
H1 2022-23 Current Operating Profit Ending September (in €m) H12022-28 -H12021-22 Reported % © Organic % a Net Sales 8671 645.3 434.4% 421.1% 454.6% Gross Profit 623.7 445.9 439.9% +24.2% 462.3% % of sales 71.9% 69.1% +28 pts +18 pts +3.3 pts Sales and marketing expenses (230.8) (172.1) +34.1% 422.1
Slide 19: H1 2022-23 Group Current Operating Margin
H1 2022-23 Group Current Operating Margin ee Reported COP/Sales : +3.8 pts +2.2 pts teen p07 pts | 36.8% Volume. +03 pts Price/Mix: +15 pts 33.0% Organic COP/Sales: +1.7 pts H1 21/22 Gross A&P Distribution/other Currency H1 22/23 COP/Sales Margin COP/Sales 19
Slide 20: H1 2022-23 Net profit
H1 2022-23 Net profit Organic % Organic % Ending September (in €m) H1 2022-23 H1 2021-22 Reported % vs Hi 21-22 vs HI 19-20 Current Operating Profit 319.3 212.9 +50.0% 427.2% 498.7% Other operating income (expenses) (4.0) (13.6) - - Operating profit 315.3 199.3 458.3% 433.9% 496.6% Net Financial inc
Slide 21: H1 2022-23 Non-recurring items
H1 2022-23 Non-recurring items Ending September (in €m) H1 2022-23 H1 2021-22 Net profit - Group share 223.8 134.0 Other operating expenses 40 13.6 Non-recurring tax items (1.0) (3.4) Impact of tax rate changes on deferred taxes in France, the UK and Greece - 40 Net profit excluding non-recurring it
Slide 22: H1 2022-23 Net debt/Cash flow
H1 2022-23 Net debt/Cash flow Ending September (in €m) H1 2022-23 H1 2021-22 Change Opening net financial debt (1 April) (353.3) (314.3) -39.0 Gross operating profit (EBITDA) 343.8 235.4 108.5 WCR of eaux-de-vie and spirits in ageing process 21 23.9 -21.8 Other working capital items (212.9) (152.2)
Slide 23: H1 2022-23 Net financial expenses
H1 2022-23 Net financial expenses Ending September (in €m) H1 2022-23 H1 2021-22 Net debt servicing costs (4.5) (5.5) Net currency gains/losses 14 (0.4) Other financial expenses (net) (2.0) (1.5) Net financial income (charges) (5.1) (74) 23
Slide 24: FY 2022-23E Foreign exchange - Hedging impact
FY 2022-23E Foreign exchange - Hedging impact 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23E Average EUR/USD conversion rate 1.17 1.16 1.11 1.17 1.16 1.02 Average EUR/USD hedged rate 1.19 118 1.16 1.17 117 1.09 Total Sales impact (in €m) (48.9) 1.5 24.5 (36.3) 24.6 €110-120m Total COP impact (in €
Slide 25: Balance sheet as of September 30, 2022
Balance sheet as of September 30, 2022 (€m) Non-current assets Current Assets excl. cash ow inventories Cash Total Assets Stocks/Assets Sept. 2022 996 32% 2,054 65% 1648 52% 95 3% 3,145 100% 52% Sept. 2021 929 1,806 1.513 99 2,834 in % 64% 53% 4% 100% 53% Shareholders’ equity Current and Non-current
Slide 26: Outlook
Outlook Eric Vallat, CEO
Slide 27: Where do we stand today?
Where do we stand today? Sales growth versus H1 2019/20* > Cognac: +55.8% > Liqueurs & Spirits: +55.5% > Americas: +93.3% >»> > APAC: +33.7% > EMEA: +12.1% > > Rémy Cointreau: +54.6% () Organic sales growth: HI 22/23 vs. HI 19/20 at constant exchange rates A&P ratio (% of sales) FY 19/20 FY 20/21 FY
Slide 28: Where do we stand today?
Where do we stand today? While we focus on our COGS and costs in a challenging and unpredictable world and, while we witness a normalization in the US in the coming months we are confident in our ability to achieve our 2030 ambition and we keep on investing to deliver strong organic growth in the ye
Slide 29: Communicate to build desirable, well-known brands
Communicate to build desirable, well-known brands \_ USHER” All. LIMITED POWERED») «EDITION WE BELIEVE IN THINKING BIG, AND STARTING SMALL. ahs 7 e unex rar Cointreau + Tequila + Lime 29
Slide 30: Innovate to build desirable brands and enhance client experience
Innovate to build desirable brands and enhance client experience an vow LOUIS XII TIAL IE (0) RO) |P COGNAC GRANDE CHAMPAGNE Brent Faiyaz x THE DROP @ Jimmy Fallon Show 30
Slide 31: Invest to launch desirable, aspirational brands
Invest to launch desirable, aspirational brands 31
Slide 32: Invest to seize specific growth opportunities
Invest to seize specific growth opportunities TRAVEL RETAIL (+153% vs. Last year) o Develop exclusive products o Leverage new launches 2EMY MARTIN o Foster limited editions 32
Slide 33: c. €90-100m Strategic WCR outflow
• c. €90-100m • • in 2022-23E €70-80m • Strategic WCR in 2022-23E • outflow • 33
Slide 34: FY 2022-23 Outlook
FY 2022-23 Outlook Rémy Cointreau outlook for FY 22/23: o Rise in market share value in the exceptional spirits market o Strong organic sales growth, incl. normalization of consumption trends in H2 o Increase in A&P investments, notably in H2 o Organic COP margin improvement (mostly in H1) including
Slide 35: Appendices
Appendices Ochdamh-mor ACTAMNADE
Slide 36: Quarterly sales by division
Quarterly sales by division In €m Q1 22/23 Qt 21/22 Reported % Organic % Cognac 292.3 199.6 +46 4%. +31,5% Liqueurs & Spirits 1097 853 +28.7% 419.4% Subtotal: Group Brands 402.0 284.9 +411% +27 9%, Partner Brands 79 8.2 -3.1% 38% Total 409.9 2931 439.9% +27. 0% In &m Q2 22/23 Q2 21/22 Reported % Org
Slide 37: Organic growth: at constant Currency & scope
Organic growth: at constant Currency & scope 37
Slide 38: Foreign exchange - Hedging impact
Foreign exchange - Hedging impact Hedged rate €/$ A & verage €/$ 110 WW 2016-17. 2017-18 = 2018-19 2019-20 2019-20 March March March Sept. March 2020-21 Sept. 2020-21 March 2021-22 Sept. 1.17 1.16 2021-22 March No 1.04 2022-23 Sept. 38
Slide 39: Key events during the half-year
Key events during the half-year July 21,2022 July 27,2022 September 7, 2022 September 29, 2022 Combined General Meeting - Change in governance As part of the long-prepared succession plan, the Board of Directors decided to change the governance of the Rémy Cointreau Group as follows: 1/ Appointment
Slide 40: Subsequent events
Subsequent events October 20, 2022 October 27, 2022 Rémy Cointreau Group announced the creation of Maison Psyché Rémy Cointreau Group announced the creation of a luxury perfume house, Maison Psyché, that draws on the special blending and ageing savoir-faire specific to the spirits industry to elevat
Slide 41: Next Financial publication dates
Next Financial publication dates
Slide 42: Q&A
@) REMY COINTREAU Q&A LABUS D'ALCOOL EST DANGEREUX POUR LA SANTE. A CONSOMMER AVEC MODERATION