C&c Group Plc · LSE:CCR
C&c — FY2014 Earnings Presentation
26 slides from C&c's earnings presentation, May 20, 2014
Slide 1: FY 2014 Results
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Slide 2: Disclaimer
Disclaimer FY 2014 | Slide 2 This presentation should be read in conjunction with the announcement of the financial results of C&C Group plc (the "Company") for the year ended 28 February, 2014, released 20 May 2014 (the “2014 Full Year Announcement”). This presentation does not constitute an invita
Slide 3: FY 2014 results presentation
FY 2014 results presentation FY 2014 | Slide 3 1 Key highlights & Overview Stephen Glancey, CEO 2 Financial review Kenny Neison, CFO 3 Strategic review & Outlook Stephen Glancey, CEO
Slide 4: Business evolution
Business evolution FY 2014 | Slide 4 Primary exposure to stable geographies Improving economic conditions Multi-beverage model delivering strong FCF and continued growth prospects International cider growth Share of FY 2014 operating profit 13% Ireland & Scotland 13% England & Wales 74% Internationa
Slide 5: FY 2014 financial highlights
FY 2014 financial highlights FY 2014 | Slide 5 Net revenue +30% to €620.2m Adjusted Operating profit +10.6% to €126.7m Operating margin 20.4% FCF of €78.5m (before exceptional): 52% of EBITDA Adjusted diluted EPS +5.7% to 29.5 cent Dividend per share up 14.3% to 10 cent
Slide 6: FY 2014 strategic & operational highlights
FY 2014 strategic & operational highlights FY 2014 | Slide 6 Evolved business model in Ireland and Scotland Successful business integration and synergies delivered Investment in new, craft brewery facilities US business integration, consolidation of distribution network and investment in new Vermont
Slide 7: Financial review
FY 2014 Results Financial review
Slide 8: FY 2014 performance drivers
FY 2014 performance drivers FY 2014 | Slide 8 2014 Operating Profit | Increase of €12.1m on FY 2013 Acquisitions +€13.0m +11.3% Cost Savings +€3.4m +3.0% Cost deflation +€2.8m +2.4% Organic (€4.5m) (3.9%) Currency (€2.6m) (2.3%)
Slide 9: Capital allocation & investment
Capital allocation & investment FY 2014 | Slide 9 Brand and Business Investment Price New Product Advertising & Sales Trade Investment Development Promotion People Lending Sales & Marketing Investment €82m | 13% of NSR in FY 2014
Slide 10: ROI & UK performance
ROI & UK performance FY 2014 | Slide 10 ROI Improved market share FY 2014 EBIT Volume and revenue growth €48.2m Gleeson integration successful +22.6% UK | Cider Market and competitor challenges continue FY 2014 EBIT Investment in SMCM showing potential €20.7m (29.1%) UK | Tennent’s Reven
Slide 11: International performance
International performance FY 2014 | Slide 11 International - USA Business integration FY 2014 EBIT Wholesaler consolidation €16m Strong competition +68.4% Cidery investment critical Commercial initiatives now in place International – Other markets 184khl to 47 countries Australia route
Slide 12: Net revenue and Operating profit (FY 2013 to 2014)
Net revenue and Operating profit (FY 2013 to 2014) FY 2014 | Slide 12 Net revenue €m 650 30.5 2.7 620.2 145.1 600 550 (19.9) (1.1) 476.9 500 450 (14.0) 400 ROI International Gleeson +€143.1m VHCC +€32.3m 350 Continuing +€2.0m Continuing (€1.8m) 300 250 FY '13 Currency ROI Cider UK Tennent's UK Inter
Slide 13: FY 2014 Free cash flow
FY 2014 Free cash flow FY 2014 | Slide 13 €m 160 5 Year FCF Conversion 0.7 24.0 76% EBITDA 140 (14.3) 126.7 52% EBITDA 120 41% (28.5) EBITDA 100 (13.7) 80 78.5 (16.4) 61.6 60 (16.9) 40 Operating Dep./Amort. Working Trade lending CapEx Income tax Finance FCF before Exceptional Free cashflow profit ca
Slide 14: FY 2014 Balance sheet
FY 2014 Balance sheet FY 2014 | Slide 14 €m 0.0 (50.0) 61.6 (100.0) (27.9) (123.4) (150.0) (51.5) 11.6 5.0 (145.2) (20.6) (200.0) Net debt - 1 Mar Free cash flow Dividends paid Debt arising on Acquisitions Exercise of share Other Net debt - 28 Feb 2013 Acquisitions options 2014 Net Debt to EBITDA FY
Slide 15: Dividend and Guidance
Dividend and Guidance FY 2014 | Slide 15 FY 2014 dividend growth of 14.3% Return to normalised FCF conversion in FY 2015 FY 2015: Mid single-digit earnings growth
Slide 16: Strategic review & Outlook
FY 2014 Results Strategic review & Outlook
Slide 17: Core markets driving earnings & cash flow
Core markets driving earnings & cash flow FY 2014 | Slide 17 Ireland and Scotland Trade-led model in Ireland and Scotland Direct route to market Strong brand portfolio High margin Core driver of earnings and cashflow Ireland & Scotland 74% of FY 2014 Op. profit 74% 16% increase on FY 2013 Ireland &
Slide 18: Strong portfolio; authentic brands
Strong portfolio; authentic brands FY 2014 | Slide 18
Slide 19: International opportunity | Export
International opportunity | Export FY 2014 | Slide 19 Exporting to 47 countries; export volumes +11% Export brand growth: Magners: +13% Tennent’s: (Italy) +12% Gaymers: +18% Distribution in Australia now addressed Asian business +108%; further investment in sales resource
Slide 20: International opportunity | US
International opportunity | US FY 2014 | Slide 20 Investment and new entrants fuelled category growth but integration and re-positioning impacted C&C Quality, stable wholesaler network, new cidery, new packaging and commercial initiatives in place Woodchuck: 16 brand awards in 2014 Re-based expectat
Slide 21: Strong cash generation; effective capital deployment
Strong cash generation; effective capital deployment FY 2014 | Slide 21 FY 2010 – FY 2014 (last 5 years) €m €493m FCF generated EBITDA 651 €121m returned via dividend Change in working capital 62 Advances to customers (36) €81m debt reduction Net capex (97) Net finance costs (28) Effective capital d
Slide 22: Investment case
Investment case FY 2014 | Slide 22 Strong brand market combinations in Ireland and Scotland Earnings accretive and cash generative GB commoditised - focus on niche speciality International growth of Cider Macro risk Improving Capital allocation focus on shareholder value creation
Slide 23: Appendix
Appendix
Slide 24: Segmental analysis
Segmental analysis FY 2014 | Slide 24 ROI FY2014 Change UK: Cider FY2014 Change (incl Gleeson) Const Curr. Const Curr. Net revenue €237.3m +157.4% Net revenue €112.8m (15.0%) Operating profit €48.2m +22.6% Operating profit €20.7m (29.1%) Operating margin 20.3% (22.3 ppts) Operating margin 18.4% (3.6
Slide 25: FX, Tax & Financing Costs, Pension
FX, Tax & Financing Costs, Pension FY 2014 | Slide 25 FX Impact on P&L (average rates) FY 2014 vs FY 2013 GBP (average rate) 0.85 0.81 USD (average rate) 1.33 1.29 Tax Effective tax rate 13% Financing Charges Finance charges of €11m Increase reflects higher average net debt in FY2014 Defin
Slide 26: www.candcgroupplc.com
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