C&c Group Plc · LSE:CCR
C&c — FY2005/6 Earnings Presentation
31 slides from C&c's earnings presentation, May 2006
Slide 1: C&C Group | 2005/6 Full Year Results
C&C Group | 2005/6 Full Year Results 1
Slide 2: Presentation Agenda
Presentation Agenda ¾ Overview ¾ Financial Review ¾ Market & Brand Review ¾ Outlook ¾ Q&A C&C Group | 2005/6 Full Year Results 2
Slide 3: Full Year Results - Highlights
Full Year Results - Highlights Amount Increase ¾ Revenue (€m) 816.6 +9%* Cider 278.4 +31%* ¾ Operating profit (€m) 124.7 +13%* Cider operating profit (€m) 85.3 +32%* ¾ Marketing Investment (€m) 58.5 +27%* ¾ Free cashflow conversion 62% (4pts) (% of EBITDA) ¾ Adjusted Earnings Per Share (cent) 29.9 +
Slide 4: C&C Group – Earnings Profile
C&C Group – Earnings Profile Operating Profit by division 2005/6 EBITA by Division Cider 68% Intl. S&L International Spirits & Liqueurs 13% Soft Drinks/Snacks/Distribution 19% Cider SD/S/D 2005/6 EBITA by Region Operating Profit by region UK ROI 71% UK 17% Ireland Other 12% Other C&C Group | 2005/6
Slide 5: Business objectives
Business objectives Strong & sustained earnings growth and cash flow Ö Bulmers continued out performance of Irish LAD Growth Ö Magners roll out in UK/other markets Ö Tullamore Dew market penetration Strong EPS growth Attractive dividend stream Ö Strong Margins Cash Flow Ö High ROCE Ö Low corporate t
Slide 6: Financial Review
C&C Group | 2005/6 Full Year Results 6
Slide 7: 2005/6 Financial Overview
2005/6 Financial Overview Feb '06 Feb '05 Feb '05 Growth (ii) Reported (i) Constant fx Excluding exceptionals €m €m €m Revenue 816.6 750.4 747.7 9.2% Operating Profit 124.7 112.4 110.1 13.3% Finance Charges (18.6) (21.6) (21.6) (13.9%) Taxation (9.3) (8.1) (8.1) 14.8% Earnings 96.8 82.7 80.4 20.4% (
Slide 8: Exceptional Costs
Exceptional Costs ¾ Re-Organisation Costs €8.1m ¾ Asset write down €2.6m ¾ Profit on disposal of Land & Buildings (€9.3m) €1.4m C&C Group | 2005/6 Full Year Results 8
Slide 9: Operating Profit
Operating Profit Feb '06 Feb '05 Growth Excluding Exceptionals constant fx €m €m Revenue 816.6 747.7 9.2% Marketing 58.5 46.1 26.9% Marketing % of Revenue 7.2% 6.2% 1.0 Operating Profit 124.7 110.1 13.3% Operating Profit Margin 15.3% 14.7% 0.6 C&C Group | 2005/6 Full Year Results 9
Slide 10: Divisional Performance (Operating Profit)
Divisional Performance (Operating Profit)(i) Overall 130 €124.7m € million 120 19% 23.1 €110.1m 110 27% 100 13% 29.9 90 16.3 80 68% 85.3 14% 70 15.4 60 59% 50 64.7 40 30 20 10 0 2005/6 2004/5 Cider (+32%) Intl. Spirits & Liqueurs(+6%) Soft Drinks/Snacks/Dist. (-23%) (i) On an IFRS basis at constant
Slide 11: Cider
Cider Feb '06 Feb '05 Growth constant fx €m €m Revenue 278.4 212.5 31.0% Marketing 25.4 14.5 75.2% Marketing /Revenue 9.1% 6.8% 2.3 Operating Profit 85.3 64.8 31.5% Operating Margin 30.6% 30.5% 0.1 Growth Analysis Volume Price/Mix* Total Cider 31.2% 3.5% Bulmers 6.0% 2.4% Magners 130.2% 6.7% * Net o
Slide 12: International Spirits & Liqueurs
International Spirits & Liqueurs Feb '06 Feb '05 Growth constant fx €m €m Revenue 68.8 67.7 1.6% Marketing 13.4 12.6 6.3% Marketing /Revenue 19.5% 18.6% 0.9 Operating Profit 16.3 15.4 5.8% Operating Margin 23.7% 22.7% 1.0 Grow th Analysis Volum e Price Brand Mix/Other Total (1.1%) 0.2% 2.4% * Net of
Slide 13: Soft Drinks & Snacks
Soft Drinks & Snacks Feb '06 Feb '05 Growth constant fx €m €m Revenue 234.9 238.6 (1.6%) Marketing 17.8 17.0 4.7% Marketing % of Revenue 7.6% 7.1% (0.5) Operating Profit 17.8 24.2 (26.4%) Operating Profit Margin 7.6% 10.1% (2.5) Growth Analysis Volume Price Other Beverages (0.5%) 0.6% (0.8%) Snacks
Slide 14: Distribution
Distribution Feb '06 Feb '05 Growth constant fx €m €m Revenue 234.5 228.9 2.4% Operating Profit 5.3 5.7 (7.0%) Operating Margin 2.3% 2.5% (0.2) C&C Group | 2005/6 Full Year Results 14
Slide 15: Cash Flow
Cash Flow Feb '06 Feb '05 Growth €m €m EBITDA 144.3 132.9 Capital expenditure (net) (9.9) (8.2) Working capital (10.1) (2.5) Share Based employee benefits 1.1 0.6 Operating cash flow 125.4 122.8 2.1% Reorganisation (10.9) (4.6) Finance Charges (17.6) (22.0) Tax (8.0) (8.2) Free cash flow 88.9 88.0 1
Slide 16: Balance Sheet & Capital Structure
Balance Sheet & Capital Structure Balance Sheet Debt/EBITDA Net debt at 1 March, 2005 (€m) 441.0 3.3 Free cash flow in period (€ m) (88.9) Dividends Paid (€m) 29.9 Other (€m) 1.1 Net debt at 28 February, 2006 (€ m) 383.1 2.65 Capital structure – 28 February, 2006 Net debt to total capitalisation 17%
Slide 17: Earnings & Dividends
Earnings & Dividends Feb 2006 Cent per €m Share Reported Earnings (i) 96.8 29.9 Dividend Interim paid 21.1 6.5 Proposed final 27.5 8.5 48.6 15.0 Payout ratio 50% (i) Excluding goodwill and exceptionals C&C Group | 2005/6 Full Year Results 17
Slide 18: Market & Brand Review
C&C Group | 2005/6 Full Year Results 18
Slide 19: Irish LAD market
Irish LAD market Market Trends(I) Feb ‘06 Feb ‘05 Overall Market 2% (1%) On-Trade (2%) (7%) Off-Trade 12% 11% Volume Share Increase Value Share(iii) Value/Vol Bulmers Market Share on P/Y share ratio Overall(ii) 10.0% 0.4 On-Trade (iii) 10.0% 0.4 11.3% 1.13 Off-Trade (iii) 7.0% 0.4 8.7% 1.24 (i) Mark
Slide 20: International Cider
International Cider Overall Increasing volume 100% 15% 22% 33% 38% share of branded cider 75% 130% volume growth 50% 85% 78% 67% 62% in 2005/6 25% Magners Bulmers 0% FY 2003/4 FY 2004/5 H1 2005/6 FY 2005/6 FY 05/6 FY 04/5 Profile Profile Northern Ireland 22% 41% Great Britain 64% 40% EU USA USANI 6%
Slide 21: International Cider – Market Review NI
International Cider Market Review - NI Magners | Northern Ireland Volume Growth 25% 6.4% Share of On-Trade LAD market(i) 87% On-Trade Distribution(ii) (i) MAT to Feb.’06 – Nielsen (ii) Nielsen Feb. ‘06 Turnover Weighted Distribution C&C Group | 2005/6 Full Year Results 21
Slide 22: International Cider – Market Review GB
International Cider Market Review - GB Magners | Scotland Magners | London 3.0% Quarterly Run Rate Share(i) 1.3% Quarterly Run Rate Share(i) 2.6% MAT Share(ii) 0.8% MAT Share(ii) 70% On-Trade Distribution(iii) 44% On-Trade Distribution(iii) Leading On-Trade Cider brand Leading On-Trade Packaged bran
Slide 23: UK Roll Out
UK Roll Out Newcastle Middlesbrough Preston Leeds MANCHESTER Liverpool Sheffield Chester Stoke Nottingham Leicester Derby Birmingham Oxford Ipswich Reading Cardiff Bristol London Brighton Plymouth Southampton Torquay Magners being rolled–out nationally in GB in 2006/7 C&C Group | 2005/6 Full Year Re
Slide 24: International Spirits & Liqueurs
International Spirits & Liqueurs Tullamore Dew maintaining Shipment Depletions Brand Growth Trend(i) strong growth trend Carolans (10%) (5%) Tullamore Dew 15% 19% Carolans depletions Frangelico (2%) 2% - Primarily UK (price competition) Total (1%) 3% - North America flat Frangelico continues to be s
Slide 25: Soft Drinks & Snacks Division
Soft Drinks & Snacks Division Difficult market conditions CSDs and Snacks decline Margin contraction in Water Shift to organised trade C&C Underperformance Share loss in CSDs/ Water/Snacks Remedial Action | Beverages Re-organisation/new Soft Drink leadership Focus on improved execution/cost reductio
Slide 26: Outlook
Slide 27: Outlook
Outlook 2006/7 Full Year Expectation is double digit profit growth – Continued strong growth from Cider Division – Bulmers share improvement – Magners growth in UK – Distribution losses will lead to a decline in Operating Profit of combined other divisions 2006/7 H1 – Profit growth constrained by Ma
Slide 28: Outlook
Outlook Capex/Cash Flow – Capex investment in Cider c. €50 million Bottling On stream end of May Other elements of supply chain June 2006 onwards – FCF/EBITDA Under 50% – Dividend payout target unchanged C&C Group | 2005/6 Full Year Results 28
Slide 29: Q&A 2006 IR Calendar
Q&A 2006 IR Calendar Annual General Meeting 8 July 2006 H1 ’06/’07 pre-close 31 August 2006 H1 ’06/’07 Period end 31 August 2006 H1 ’06/’07 results Mid October 2006 C&C Group | 2005/6 Full Year Results 29
Slide 30: Bulmers – A Power Brand
Bulmers – A Power Brand % 14 Market Share of Irish LAD Market 12 10 8 6 4 2 0 90 92 94 96 98 00 01 02 03 04 05 19 19 19 19 19 20 20 20 20 20 20 Bulmers Cider Duty Smoking Other ciders Doubled Ban Incl. Other C&C brands C&C Group | 2005/6 Full Year Results 30
Slide 31: C&C Group plc contact details
C&C Group plc P +353 1 616 1100 Kylemore Park F +353 1 616 1163 Dublin 10 E C&CGroup@kcapitalsource.com Ireland W www.candcgroupplc.ie C&C Group | 2005/6 Full Year Results 31