C&C Group PLC · LSE:CCR
C&C — Investor Presentation (March 2012)
25 slides from C&C's investor presentation, March 2012
Slide 1: C&C Group plc
cac group ple “8 March, 2012
Slide 2: Disclaimer
Disclaimer This presenta,on does not cons,tute an invita,on to underwrite, subscribe for, or otherwise acquire or dispose of any shares or other securi,es of C&C Group plc (the "Company"). The presenta,on contains forward-‐looking statements, including statements about the Company's inten,ons, beli
Slide 3: Agenda
Business Overview Focused Market PosiCon Global Cider Opportunity Q&A
Slide 4: Business Overview
Business Overview Premium posiCon in growing cider category Strong brand market combinaCons Balance sheet strength; net cash posiCon Slide 4
Slide 5: Manufacturing Assets
Strong Cider led LAD PorLolio Distributed Cider Wellpark Facility Manufacturing Assets Clonmel Facility Beer Shepton Mallet Facility Slide 5
Slide 6: Cider | The 'Core' Investment Case
Cider | The ‘Core’ Investment Case Product ⁻ Benefits from ‘Savoury to Sweet’ trend AMributes ⁻ CraW & TradiConal ⁻ Refreshing & Natural ⁻ Flavour variants ⁻ ‘Unisex beer’ Slide 6
Slide 7: Premium Cider | Driving UK Category Growth
Premium Cider | Driving UK Category Growth Cider category been in steady growth for last 25yrs: +4.3% CAGR Vibrant & sustainable category UK Cider Clearances Million hectolitres Slide 7 Source: HMC&E 2011 = 12 Months to November
Slide 8: Cider | The only Category Outperforming in GB
Cider | The only Category Outperforming in GB GB Beers, Wine & Spirits MAT Volume % Change Source: Nielsen/CGA 2011 vs 2010 Slide 8
Slide 9: Focused Market Position
Business Overview Focused Market PosiCon Global Cider Opportunity Q&A
Slide 10: Market Review | Ireland
Market Review | Ireland Ireland Northern Ireland #1 Cider Strong posiCon in Cider & Beer Beer porLolio & innovaCon Consolidated market On-‐going switch to off-‐trade Strong porLolio Stable earnings performance Pub loan book opportuniCes Slide 10
Slide 11: Market Review | GB
Market Review | GB Scotland England & Wales #1 Beer #2 Cider Re-‐investment in Tennent’s Vibrant category InnovaCon -‐ ‘Caledonia Best’ & Strong off-‐trade performance Tennent’s Export Focus on Magners Golden Draught Third party contract acCvity rollout Loan book investment Ong
Slide 12: Global Cider Opportunity
Business Overview Focused Market PosiCon Global Cider Opportunity Q&A
Slide 13: Global Cider Market Overview
Global Cider Market Overview Global cider market of c. 17 m HLs UK market: 50% of global cider consumpCon Cider averages 2.6% of LAD in mature markets Growing interest in cider from global brewers Slide 13
Slide 14: Cider | Attractive Global Growth
Cider | AjracCve Global Growth Global cider category growth forecasts Cider vs Beer | 2006 to 2016 Million hectolitres 20 10% 8% 19 8% 7% 18 6% 4% 17 4% 3% 2% 2% 16 2% 15 0% 14 -‐2% -‐2% 13 -‐4% -‐4% 12 -‐6% 11 World UK Beer Growth ('06 -‐ '11) Beer Growth ('11 -‐ '16f) 10 2004 2005 2006 2007
Slide 15: Cider | Fundamentally Appealing Economics
Cider | Fundamentally Appealing Economics Price premium to domesCc & craW beers AjracCve margins to distributors and retailers Strong growth rates Slide 15
Slide 16: Cider | Emerging Cider Markets
Cider | Emerging Cider Markets USA Canada Australia Finland South Africa Cider volume 400khl 222khl 400khl 480khl 2,143khl Beer volume 236,000khl 22,460khl 17,866khl 4730khl 28,482khl Penetra,on 0.2% 1.0% 2.2% 10.1% 7.0% Cider growth +25% +2% +35% Imported Cider +16% (LTM) +5% Trends Cider is an
Slide 17: C&C | Growing Our International Presence
C&C | Growing Our InternaConal Presence Targeted internaConal expansion Flexible operaCng model per market North America Europe Australia Slide 17
Slide 18: C&C | Strong International Volumes
C&C | Strong InternaConal Volumes Strategy evident in strong volume performances C&C Australian Magners Volumes (MAT) to Nov ‘11 C&C North American Magners Volumes (MAT) to Nov ‘11 hectolitres hectolitres 30,000 60,000 55,000 25,000 50,000 20,000 45,000 15,000 40,000 10,000 35,000 5,000 30,000 Slide
Slide 19: C&C | International Developments
C&C |InternaConal Developments LFL revenue growth +27% for 9 months in FY’12 AcquisiCon of Hornsby’s Appointment of Joris Brams – MD InternaConal Business DistribuCon agreements: Suntory (Australia) & Moosehead (Canada) +25% LTM +35% LTM LTM: Last Twelve Months Source Euromonitor, Canadean &
Slide 20: C&C | Strong Portfolio for International Markets
C&C | Strong PorLolio for InternaConal Markets Strong porLolio of cider brands – Irish, English and American heritage Growing sector interest in cider and craW beers InternaConal management team and balance sheet to capitalise on growth Slide 20
Slide 21: Strong Balance Sheet & Financial Capacity
Strong Balance Sheet & Financial Capacity No debt and recently negoCated financing facility to 2017 2.5x EBITDA + cash FY11/12f * Net Debt/Cash 2009 to 2012 €m Financial capacity of c. €400m * Based on current consensus forecasts for year end EBITDA and net cash posi,on FY’12 Slide 21
Slide 22: C&C | Summary
C&C | Summary Premium posiCon in growing cider category Strong brand market combinaCons Growing internaConal business Balance sheet strength and high FCF to deliver on growth objecCves Slide 22
Slide 23: Q&A
Business Overview Focused Market PosiCon Global Cider Opportunity Q&A Slide 23
Slide 24: Risk Factors
Risk Factors CompeCCve threat ShiW from on to off-‐trade Alcohol duty risk Exchange rate risk Weak business condiCons in core markets Slide 24
Slide 25: www.candcgroupplc.com
www.candcgroupplc.com BULMERS MAGNERS