C&C Group PLC · LSE:CCR

C&C — Investor Presentation (March 2012)

25 slides from C&C's investor presentation, March 2012

  1. Slide 1: C&C Group plc

    cac group ple “8 March, 2012

  2. 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

  3. Slide 3: Agenda

    Business Overview Focused Market PosiCon Global Cider Opportunity Q&A

  4. Slide 4: Business Overview

    Business Overview Premium posiCon in growing cider category Strong brand market combinaCons Balance sheet strength; net cash posiCon Slide 4

  5. Slide 5: Manufacturing Assets

    Strong Cider led LAD PorLolio Distributed Cider Wellpark Facility Manufacturing Assets Clonmel Facility Beer Shepton Mallet Facility Slide 5

  6. 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

  7. 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

  8. 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

  9. Slide 9: Focused Market Position

    Business Overview Focused Market PosiCon Global Cider Opportunity Q&A

  10. 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

  11. 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

  12. Slide 12: Global Cider Opportunity

    Business Overview Focused Market PosiCon Global Cider Opportunity Q&A

  13. 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

  14. 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

  15. 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

  16. 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 

  17. 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

  18. 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

  19. 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 &

  20. 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

  21. 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

  22. 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

  23. Slide 23: Q&A

    Business Overview Focused Market PosiCon Global Cider Opportunity Q&A Slide 23

  24. 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

  25. Slide 25: www.candcgroupplc.com

    www.candcgroupplc.com BULMERS MAGNERS

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