Remy Cointreau SA · EURONEXT:RCO

Remy Cointreau SA — H1 2015/16 Earnings Presentation

18 slides from Remy Cointreau SA's earnings presentation, Oct 16, 2015

  1. Slide 1: Fiscal Year 2015/16: 6 months ended 30 September 2015

    Fiscal Year 2015/16 6 months ended 30 September 2015 16 October 2015

  2. Slide 2: Key Messages

    Key Messages  H1 sales performance is in-line with our expectations  Technical factors: a 4.9pp/EUR23.3m hit on H1 organic sales growth  Gradually improving consumer trends in H1:  Accelerated trends in the US and in Africa  Slight improvement in Western Europe, led by Germany and the UK  Grad

  3. Slide 3: H1 2015/16 Sales Analysis

    H1 2015/16 Sales Analysis €m H1 14/15 Organic Currency H1 15/16 Reported growth: +6.1% 500.7 471.8 -5.9% +12.0% 3

  4. Slide 4: Currency Impact on H1 2015/16 Sales

    Currency Impact on H1 2015/16 Sales Positive currency impact : EUR56.6m Other currencies 9% CNY 13% HKD 14% USD 64% 4

  5. Slide 5: Quarterly Organic Sales Growth

    Quarterly Organic Sales Growth Q1 14/15 Q2 14/15 Q3 14/15 Q4 14/15 Q1 15/16 Q2 15/16 +23.4%** (1.0%)** (3.2%) (5.7%)** (5.5%)** (9.0%) FY 14/15: +0.6% H1 15/16: (5.9%) (**) Calculated based on 2013/14 pro forma sales (i.e excluding the Edrington contract in the US) 5

  6. Slide 6: H1 Organic Growth by Region

    H1 Organic Growth by Region Americas EMEA Asia-Pacific Group 10,0% +4.0% 5,0% 0,0% (0.2%) ‐5,0% (5.9%) ‐10,0% ‐15,0% ‐20,0% ‐25,0% (22.2%) ‐30,0% 6

  7. Slide 7: H1 2015/16 Trends by Region (1)

    H1 2015/16 Trends by Region (1)  Asia-Pacific sales -22.2%, led by Chinese wholesalers cautiousness and RTM changes  Technical factors weighed on H1 performance:  Route-to-Market adjustments in Greater China  Streamlining of on-trade outlets in Greater China  Change in distributor in Australia

  8. Slide 8: H1 2015/16 Trends by Region (2)

    H1 2015/16 Trends by Region (2)  Americas sales flat (-0.2%): strong depletion trends mitigated by technical factors  While technical factors weighed on the sales performance…  Exit from the VS cognac category in the US  High comparable base for Cointreau in the US  End of the distribution cont

  9. Slide 9: Q1 2015/16 Trends by Region (3)

    Q1 2015/16 Trends by Region (3)  Europe, Middle East & Africa sales up 4.0%, led by Africa and Central Europe  Western Europe: slight sales decline in H1; positive sell-out trends led by Germany/UK  Negative technical factor in H1: earlier Easter celebrations  Double-digit sell-in and sell-out g

  10. Slide 10: H1 Organic Growth by Product Division

    H1 Organic Growth by Product Division Rémy Martin Liqueurs & Spirits Partner Brands Group 3,0% 1,0% ‐1,0% ‐3,0% (3.1%) ‐5,0% ‐7,0% (5.9%) ‐9,0% (8.3%) ‐11,0% ‐13,0% (12.6%) ‐15,0% 10

  11. Slide 11: Rémy Martin (-3.1% organic decline)

    Rémy Martin (-3.1% organic decline)  Asia-Pacific:  Double-digit sales decline in H1 (technical factors + wholesalers’ cautiousness)  Greater China sell-through improving gradually: volumes flat+, value down mid-single digits  Americas:  Sales up double-digits in H1, led by the US and Mexico (n

  12. Slide 12: Rémy Martin: Marketing Initiatives

    Rémy Martin: Marketing Initiatives Rémy Martin CLUB La Maison Rémy Martin returns Limited Edition by London Christofle 2-27 November 2015 12

  13. Slide 13: Liqueurs & Spirits (-8.3% organic decline)

    Liqueurs & Spirits (-8.3% organic decline)  H1 sales decline largely due to technical factors and Russian weakness:  Technical factors: Cointreau comps in the US (Q1 and Q2), earlier Easter in Western Europe (Q1), and changes in distributors in Australia and Canada (mainly Q1)  Weak sell-in to Ru

  14. Slide 14: Liqueurs & Spirits (-8.3% organic decline)

    Liqueurs & Spirits (-8.3% organic decline)  Metaxa: double-digit sales decline led by Russia, Greece and Travel Retail (Russian tourists); Significant price increases in Germany; ongoing strength in Slovakia/Czech Republic  Mount Gay:  High-digit sales growth: positive mix gains in key markets (U

  15. Slide 15: Liqueurs & Spirits: Marketing Initiatives

    Liqueurs & Spirits: Marketing Initiatives The Botanist foraging experience The Botanist Foraged in South Africa Cocktail Competition in Japan First Large-Scale Travel Retail Activation for The Botanist (in Zurich) 15

  16. Slide 16: Partner Brands (-12.6% organic decline)

    Partner Brands (-12.6% organic decline)  Double-digit decline in sales mainly reflects the end of the distribution contract of Piper and Charles Heidsieck in the US (EUR6.0M loss)  Solid growth of the third-party spirits distributed in EMEA 16

  17. Slide 17: 2015/16 Outlook Confirmed

    2015/16 Outlook Confirmed ■ H1 2015/16 organic sales performance in-line with Group’s expectations ■ Maintains guidance of delivering positive growth in current operating profit, at constant exchange rate and scope, for the financial year 2015/16 17

  18. Slide 18: Q&A

    REMY COINTREAU Q&A

Rémy Cointreau — H1 2015/16 Earnings Presentation on 6ix