Pernod Ricard SA · EURONEXT:RI
Pernod Ricard SA — 9M 2011/12 Earnings Presentation
52 slides from Pernod Ricard SA's earnings presentation, Apr 26, 2012
Slide 1: Sales to 31 March 2012
Sales to 31 March 2012 26 April 2012 This presentation can be downloaded from our website: www.pernod-ricard.com
Slide 2: Key messages
Key messages Continuation in the 3rd quarter of the I very good underlying trends of the 1st half year II Refinancing completed 2
Slide 3: Contents
Contents - Overall analysis - TEXT - Growth by region - Growth by brand - Marketing initiatives and innovation - Conclusion and outlook - Appendices 3
Slide 4: Key figures to 31 March 2012
Key figures to 31 March 2012 Sales: € 6,315 million (+7%) Organic growth of +9% Volume: +5% Top 14 Sales: +11%(1) Emerging Sales: +17%(1) markets(2) Mature Sales: +3%(1) markets (1) Organic growth (2) List of emerging markets available in appendix 4
Slide 5: Change in sales (9 months)
Change in sales (9 months) 9-month sales at 31 March 2012: +7% (€ millions) +504 (41) (50) +9% -1% -1% 5,902 6,315 10/11 9-month sales Organic growth Group structure Forex impact 11/12 9-month sales Organic growth: +9% (Spirits +9%, Wine +5%), or +8% excluding “French pre-buying”(1) (not yet fully a
Slide 6: Change in sales (Q3)
Change in sales (Q3) Q3 2011/12 sales (3 months): +5% (€ millions) +50 (18) +49 +3% -1% +3% 1,701 1,620 Q3 10/11 sales Organic growth Group structure Forex impact Q3 11/12 sales Organic growth: +3% (Spirits +3%, Wine +5%) Limited group structure impact Forex impact turned positive due to stronger US
Slide 7: Trends and key events in Q3
Trends and key events in Q3 Continuation of very good underlying trends of HY1 Continued sustained growth of our strategic brands with an Portfolio increase in the relative significance of the Premium portfolio Confirmation of strong growth(1) in emerging markets(2) and moderate growth(1) in mature
Slide 8: Trends and key events in Q3 2011/12: refinancing
Trends and key events in Q3 2011/12 Completion of refinancing Success of USD 2.5 billion bond issue on 12 January 2012 Bank refinancing signed on 25 April 2012: • Creation of a multi-currency revolving credit facility equivalent to € 2.5 billion (drawn and available) • Maturity: 5 years (new maturit
Slide 9: Contents
Contents - Overall analysis - TEXT - Growth by region - Growth by brand - Marketing initiatives and innovation - Conclusion and outlook - Appendices 9
Slide 10: Organic sales growth by region (9 months)
Organic sales growth by region (9 months) Growth in all regions FY 9 months 2010/11(1) 2011/12(1) ASIA-RoW +15% +16% AMERICAS +5% +5% EUROPE (EXCL. FRANCE) 0% +3% FRANCE +4% +8% WORLD +7% +9% Asia-RoW: Continued dynamism Americas: Growth driven by Premium(2) brands Europe: Acceleration in the East a
Slide 11: Asia – Rest of World: analysis by category
ASIA – REST OF WORLD Continued dynamism Analysis by category 9 months 9 months Organic (€ millions) ∆ 2010/11 2011/12 ∆ SALES 2,156 2,474 +15% +16% Martell (+26%(1)): still the main growth driver. Threshold of 1 million cases(2) exceeded in China Scotch whiskies in the Top 14 (+14%(1)): volume growt
Slide 12: Asia – Rest of World: analysis by market
ASIA – REST OF WORLD Continued dynamism Analysis by market China • Very dynamic growth (+22%(1)) driven by Martell, Scotch whiskies, champagne and Jacob’s Creek • Q3 underlying trend in line with HY1 India: local whiskies (+25%(1)); Top 14 (+25%(1)) driven by Absolut, The Glenlivet and Chivas Other
Slide 13: Asia – Rest of World: analysis by market
ASIA – REST OF WORLD Continued dynamism Analysis by market Travel Retail: continued buoyancy (+20%(1)), driven by premiumisation South Korea: • -5%(1) primarily due to Imperial (-10%(1)) in a depressed market (decline in traditional on-trade). Strong growth of Absolut (+42%(1)) • Unfavourable techni
Slide 14: Americas: analysis by category
AMERICAS Growth driven by Premium brands Analysis by category 9 months 9 months Organic (€ millions) ∆ 2010/11 2011/12 ∆ SALES 1,564 1,589 +2% +5% Top 14 (+5%(1)): main growth driver • Jameson, Malibu, Perrier-Jouët , The Glenlivet and Martell in the US • Absolut, Chivas and Ballantine’s in Brazil •
Slide 15: Americas: analysis by market, US
AMERICAS Growth driven by Premium brands Analysis by market: US Solid organic sales growth (+5%). Top 14 +5%(1) including price/mix of +2%(1). Q3 in line with HY1 Modest decline of Absolut (-1%(1)) in a very competitive vodka market. Numerous initiatives already launched or planned for HY2 2011/12 J
Slide 16: Americas: other markets
AMERICAS Growth driven by Premium brands Analysis by market: other markets Brazil: • Strong growth (+11%(1)) driven by Top 14 (+30%(1)), essentially Absolut and Scotch whiskies • Strong performance of Passport (+23%(1)) and Orloff (+12%(1)) Mexico: • Sales decline (-13%(1)) • Continued implementatio
Slide 17: Europe (excluding France): analysis by category
EUROPE (EXCLUDING FRANCE) Acceleration in the East and modest decline in the West Analysis by category 9 months 9 months Organic (€ millions) ∆ 2010/11 2011/12 ∆ SALES 1,633 1,656 +1% +3% Top 14: main growth driver (+5%(1)), led by Jameson, Chivas, Absolut, Beefeater and The Glenlivet. Decline of Ba
Slide 18: Europe (excluding France): analysis by market
EUROPE (EXCLUDING FRANCE) Acceleration in the East and modest decline in the West Analysis by market Eastern Europe: accelerated growth (+19%(1), +30%(1) in Q3) • Russia: main contributing market to growth (+29%(1), Top 14 : +33%(1)) driven by Jameson, Chivas, ArArAt, Olmeca and Ballantine’s Launch
Slide 19: France: Q2 pre-buying not fully cleared
FRANCE Q2 pre-buying not fully cleared at end March Analysis by category 9 months 9 months Organic (€ millions) ∆ 2010/11 2011/12 ∆ SALES 549 595 +8% +8% Unfavourable technical effect on Q3 2011/12 sales (-42%(1)) related to the reversal of just over half of the HY1 2011/12 pre-buying Reminder HY1 E
Slide 20: Sales analysis by region
Sales analysis by region Increase in relative significance of Asia-RoW and emerging markets 9 months 2010/11(1) 9 months 2011/12(1) 9% 9% 37% 26% 39% 28% 27% 25% Asia-RoW America Europe (excl. France) France 9 months 2010/11 9 months 2011/12 38% 40% 62% 60% Emerging markets(2) Mature markets 20 (1)
Slide 21: Contents
Contents - Overall analysis - TEXT - Growth by region - Growth by brand - Marketing initiatives and innovation - Conclusion and outlook - Appendices 21
Slide 22: Organic sales growth by category
Organic sales growth by category Growth driven by the Top 14 % total FY 9 months sales 2010/11(1) 2011/12(1) TOP 14 SPIRITS & CHAMPAGNE 61% +10% +11% PRIORITY PREMIUM WINES 5% 0% +4% 18 KEY LOCAL BRANDS 17% +3% +10% OTHER 17% +1% +2% TOTAL 100% +7% +9% Very positive growth mix Premium brands(2) repr
Slide 23: Portfolio review: Top 14 Spirits & Champagne
Portfolio review Top 14 Spirits & Champagne Volume: +5% (1) Sales: +11% % of Group sales: 61% (1) Organic growth 23
Slide 24: Top 14 Spirits & Champagne
Top 14 Spirits & Champagne Strong growth of Top 14 with significant price/mix over the first 9 months 2011/12 Sales of which of which TOP 14(2) 7 brands reported growth(1) volumes price/mix(1) ABSOLUT 4% 3% 1% double-digit sales CHIVAS REGAL 12% 8% 4% growth (1) BALLANTINE’S 1% 0% 1% RICARD 11% 9% 2
Slide 25: Global Icons
Top 14 Spirits & Champagne Global Icons Volume increase +3% (sales +4%(1)) with growth in all regions US: moderate decline of Absolut (-1%(1)) in a very competitive category. Launches of Absolut Gräpevine and Absolut Miami and new Absolut Greyhound campaign in Q3 Strong growth(1) in Brazil, Africa/M
Slide 26: Premium Spirits
Top 14 Spirits & Champagne Premium Spirits Significant development in Eastern Europe: Russia (+51%(1)), Poland (+22%(1)) and Ukraine (+49%(1)) Strong performance in Latin America Sharp decline in Spain in a very difficult Scotch category (1) +1% Strong growth in France (+14%(1)) due to HY1 2011/12 p
Slide 27: Premium Spirits
Top 14 Spirits & Champagne Premium Spirits Reinvigoration of the brand with growth driven by innovation (Malibu cocktails, Malibu Black, Malibu Red in Q3) Excellent performance in the US (+9%(1)) and improved performance in Western (1) Europe (+4%(1)) +7% Outstanding performance driven by the US (+2
Slide 28: Prestige Spirits & Champagne
Top 14 Spirits & Champagne Prestige Spirits & Champagne Outstanding growth (+23%(1)) primarily due to highly favourable price/mix (+15%(1)) with a very good mix/quality (XO +33%(1), Noblige +27%(1)) (1) +23% Growth driven by Asia Strong development in key markets (US +9%(1), Taiwan +38%(1)) Highly f
Slide 29: Priority Premium Wines
Priority Premium Wines On-going high-value strategy and geographic diversification Volume -2% Sales +1%(1) Volume +5% Sales +4%(1) Volume: +1% Sales: +4%(1) % of Group sales: 5% Volume +10% Sales +13%(1) Volume -4% Sales +22%(1) (1) Organic growth 29
Slide 30: 18 key local brands
18 key local brands Organic growth momentum significantly increased (+10%(1) vs. +3%(1) for FY 2010/11) Volume: +10% Sales: +10%(1) % of Group sales: 17% Continued dynamism of Indian whiskies (+25%(1)), Royal Stag, Blender's Pride, Imperial Blue, with improved price/mix (launch of Royal Stag Barrel
Slide 31: Contents
Contents - Overall analysis - TEXT - Growth by region - Growth by brand - Marketing initiatives and innovation - Conclusion and outlook - Appendices 31
Slide 32: Absolut Greyhound
Absolut Greyhound Launched in US Bold & creative film directed at key advocates for the brand Collaboration with Swedish House Mafia to create a multidimensional experience inspired by the classic Greyhound cocktail 32
Slide 33: Malibu Red
Malibu Red Launch party in New York City on March 21st A game-changing innovation developed and promoted in partnership with R&B star Ne-Yo 33
Slide 34: Innovation in Luxury
Innovation in Luxury Martell Cordon Bleu 100 Royal Salute Diamond Jubilee Launched in 20 markets RSP USD 164 Ltd edition for the 100-year anniversary of the product Presented in Monaco in the presence of Prince Albert II RSP € 350 Martell Martell Chanteloup Ballantine’s 40YO Millésime 1968 Perspecti
Slide 35: Digital initiatives
Digital initiatives Our brands are up to date with the latest technologies to reinforce the proximity with their consumers Chivas Regal Ballantine’s New Website Launched on Feb. 16th Facebook page Aroma of Tokyo Use of the latest On-Trade promo capitalising on geo-localisation embedded in technologi
Slide 36: Ricard
Ricard A modern brand… yet true to its roots New Website New advertising campaign Mobile version of Ricard.com for iPhone and Android New POS Inspired by the new Ricard bottle Celebrating the 80th anniversary of the brand 36
Slide 37: Events & Sponsorships
Events & Sponsorships Relevant sponsorships enhancing the main attributes of our brands G.H. Mumm Perrier Jouët Formula One “Menus de légende” Women In Film Renewal of the international Fifth Annual Pre-Oscar Female contract as the Official Champagne Ten top French chefs celebrate the Nominee Party
Slide 38: Events & Sponsorships
Events & Sponsorships Relevant sponsorships enhancing the main attributes of our brands Ballantine’s Royal Salute Chivas Regal Championship World Polo 25YO True character leaves Sentebale Royal Salute in Davos for the a lasting impression Polo Cup World Economic Forum Campaign promoting one of Asia’
Slide 39: Events & Sponsorships
Events & Sponsorships Relevant sponsorships enhancing the main attributes of our brands Jameson Jameson Empire Awards Independent Spirit Awards This year Jameson hosted 40 international In addition to sponsoring the Independent media at the 2012 Jameson Empire Awards. Spirit Awards ceremony Jameson
Slide 40: On-trade events
On-trade events Best in class launch parties and consumer promotions Jameson Absolut Rio Beefeater J-Zone launch party London sessions celebrates St Patrick’s Day in Madrid & Moscow Launched in January 2012 in The best of London’s eclectic Jameson took over a popular Brazil, Absolut Rio is a new mus
Slide 41: Other New Products & Limited Editions
Other New Products & Limited Editions Ballantine’s The Glenlivet Ritual Golf Limited Edition Single Cask The Glenlivet By Havana Club Edition Excellence Ballantine’s also launched Collection of Rolled out in 4 the Golf Limited Edition pack exceptional limited emerging Asian malt for its 17 and 21 Ye
Slide 42: Contents
Contents - Overall analysis - TEXT - Growth by region - Growth by brand - Marketing initiatives and innovation - Conclusion and outlook - Appendices 42
Slide 43: Conclusion
Conclusion Very strong performance through end March Continuation of highly favourable underlying trends of the HY1 into Q3: • Premiumisation • Thriving emerging markets • Confirmation of recovery in the US • Contrasted situation in Europe: excellent performance in the East and slight decline in the
Slide 44: Confirmation of guidance for FY 2011/12
Confirmation of guidance for FY 2011/12 PRO Financial debt Organic growth in Net Debt(1) / EBITDA(1) profit from recurring close to 3.9 operations close to +8% at 30 June 2012 (1) Converted at the average rates, syndicated credit method 44
Slide 45: Next communications
Next communications DATE EVENT SPEAKER Monday 25 June 2012 Europe conference call Laurent Lacassagne Thursday 30 August 2012 2011/12 full year results Pierre Pringuet / Gilles Bogaert 45
Slide 46: Contents
Contents - Overall analysis - TEXT - Growth by region - Growth by brand - Marketing initiatives and innovation - Conclusion and outlook - Appendices 46
Slide 47: Emerging markets
Emerging markets Asia-Rest of World Americas Europe Algeria Argentina Albania Cambodia Aruba Armenia Cameroon Bolivia Azerbaijan China Brazil Balkans Egypt Caribbean CESAM Belarus Gabon Chile Bosnia India Colombia Bulgaria Indonesia Costa Rica Croatia Iran Dominican Republic Czech Republic Iraq Ecua
Slide 48: Strategic brands organic growth
Strategic brands organic growth Net Sales Volume growth Price/mix organic growth Absolut 4% 3% 1% Chivas Regal 12% 8% 4% Ballantine's 1% 0% 1% Ricard 11% 9% 2% Jameson 17% 13% 4% Malibu 7% 8% -2% Beefeater 4% 4% 0% Kahlua -1% -1% 0% Havana Club 0% -1% 2% Martell 23% 8% 15% The Glenlivet 18% 13% 5% R
Slide 49: Sales analysis by region
Sales analysis by region Net Sales HY1 2010/11 HY1 2011/12 Change Organic Growth Group Structure Forex impact (€ millions) France 415 9.7% 517 11.2% 102 25% 102 25% (0) 0% 0 0% Europe excl. France 1,235 28.8% 1,232 26.7% (3) 0% 21 2% (10) -1% (14) -1% Americas 1,151 26.9% 1,166 25.3% 15 1% 69 6% (3)
Slide 50: Foreign Exchange Effect
Foreign Exchange Effect Forex impact YTD March 2011/12 Average rates evolution On Net (€ millions) Sales 2010/11 2011/12 % Indian Rupee INR 60.94 66.36 8.9% (33) US Dollar USD 1.34 1.36 1.4% (18) Mexican Peso MXN 16.62 17.59 5.9% (8) Argentinian Peso ARS 5.32 5.77 8.4% (6) South African Rand ZAR 9.4
Slide 51: Group Structure Effect
Group Structure Effect Group structure YTD March 2011/12 On Net Sales (€ millions) New Zealand assets (12) Canadian assets (10) Other (19) Total Group Structure (41) 51
Slide 52: Bond issuances
Bond issuances Currency Par value Coupon Issue date Maturity date € 550 M 4.625% 06/12/2006 06/12/2013 € 800 M 7.000% 15/06/2009 15/01/2015 Euro € 1,200 M 4.875% 18/03/2010 18/03/2016 € 1,000 M 5.000% 15/03/2011 15/03/2017 $ 201 M Libor 3M + spread 21/12/2010 21/12/2015 $ 1,000 M 5.750% 07/04/2011 0