C&C Group PLC · LSE:CCR
C&C — H1 2010 Earnings Presentation
19 slides from C&C's earnings presentation, Oct 8, 2009
Slide 1: H1 2010 Results
H1 2010 Results October, 2009
Slide 2: Presentation Agenda
Presentation Agenda Introduction H1 2010 Financial Performance Market Overview Outlook Q&A C&C FY Results | Slide 2
Slide 3: Performance Overview
H12010 Performance Overview Revenue* declined 6.3% to 257.5 million Operating profit* before exceptional items declined 2% to 57.4 million Operating margin* increased 1.0pt to 22.3% Adjusted basic EPS of 15.3 cent for the first half Strong free cash flow of 53.4 million - representing 83% of EBITDA
Slide 4: Performance Overview
H12010 Performance Overview H1 2010 H1 2009 Change Change m m Constant Currency Total revenue 257.5 287.7 (10.5%) (6.3%) Cider 200.7 224.7 (10.7%) (6.2%) Spirit & Liqueurs 33.2 41.3 (19.6%) (20.2%) Distribution 23.6 21.7 +8.8% +22.3% Cider Volumes Unch. Spirit & Liqueurs Shipments (15%) C&C FY Resul
Slide 5: Performance Overview
H12010 Performance Overview On target to deliver objective of stabilised cider volumes in 2009/10 Successful launch of Bulmers & Magners Pear On trade pint bottle price reduction of 10% in Ireland Cost base and organisation structure aligned with current operating environment Acquisition of AB InBev
Slide 6: Income Statement
H12010 Income Statement H1 2010 H1 2009 Change m m Revenue 257.5 287.7 (10.5%) Operating costs 200.1 221.3 (9.6%) Operating profit before exceptionals 57.4 66.4 (13.6%) Net finance charges (3.3) (6.4) (48.4%) Taxation (5.7) (6.4) (10.9%) Effective tax rate 10.5% 10.6% Discontinued operations - (0.5)
Slide 7: Segmental Reporting
Segmental Reporting C&C manages and assesses performance across five operating segments: Cider Republic Of Ireland (ROI) Cider Great Britain (GB) Cider Rest of World (ROW) Spirits & Liqueurs Distribution C&C FY Results | Slide 7
Slide 8: Segmental Reporting: Cider ROI
H12010 | Segmental Reporting Cider | ROI H1 2010 H1 2009 Change Constant Currency m m Revenue 90.3 94.3 (4.2%) Operating profit 29.5 30.4 (3.0%) Operating margin 32.7% 32.2% +0.5pts Volumes Unch. C&C FY Results | Slide 8
Slide 9: Segmental Reporting: Cider GB
H12010 | Segmental Reporting Cider | GB H1 2010 H1 2009 Change Constant Currency m m Revenue 90.8 99.8 (9.0%) Operating profit 20.9 20.9 Unch. Operating margin 23.0% 20.9% +2.1pts Volumes (2%) C&C FY Results | Slide 9
Slide 10: Segmental Reporting: Spirits & Liqueurs
H12010 | Segmental Reporting Spirits & Liqueurs H1 2010 H1 2009 Change Constant Currency m m Revenue 33.2 41.6 (20.2%) Operating profit 4.9 7.9 (38.0%) Operating margin 14.8% 19.0% (4.2pts) Shipments (15%) C&C FY Results | Slide 10
Slide 11: Cashflow
H12010 Cashflow H1 2010 H1 2009 Change m m Year-on-Year Operating profit 57.4 66.4 (13.6%) Depreciation 6.9 9.4 (26.6%) EBITDA 64.3 75.3 (14.6%) Net capital expenditure (4.2) (9.0) (53.3%) % of depreciation 61% 96% Working capital/other 12.7 (15.5) NM Operating cash flow 72.8 50.8 +37.8% % of EBITDA
Slide 12: Balance Sheet
H12010 Balance Sheet H12010 m Net debt* at 1 March, 2009 226.2 Net Debt to EBITDA 1.9x Free cash flow in period (53.4) Other (1.7) Net debt* at 31 August, 2009 171.1 Net Debt to EBITDA 1.7x Pension deficit at 1 March, 2009 45.5 Pension deficit at 31 August, 2009 34.3 *Excludes fair value of swap ins
Slide 13: Market Overview
oa es. RTT C&C group plc “388. Market Overview
Slide 14: Cider ROI | Bulmers
Cider ROI | Bulmers H1 Performance | 2009 Bulmers Market Vol. Growth Vol. Growth Total LAD Market Unch. (11%) On-Trade (6%) (14%) Off-Trade +8% (4%) Note: Irish LAD market is approximately 69% On-Trade and 31% Off-Trade and comprises total volume of 5.3m hectolitres Source: Nielsen & Company Data C&
Slide 15: Cider GB | Magners
Cider GB | Magners H1 Performance | 2009 Magners Cider Market Vol. Growth Vol. Growth Total Cider Market (On & Off Trade) (2%) +11% On-Trade (12%) +2%* Off-Trade +18% +16%** *5 Months to July, 2009 **6 Months to 5 Sep, 2009 Note: GB LAD market is approximately 54% On-Trade and 46% Off-Trade and comp
Slide 16: Spirits & Liqueurs
Spirits & Liqueurs H1 2010 Shipments Depletions Volume decline reflects continuing de-stocking Tullamore Dew (19%) (3%) Continuing investment in brands – with a consequent impact on margins Carolans (7%) (5%) Recent indications are that de-stocking process may now be drawing to an end Frangelico (21
Slide 17: Acquisition Integration
Acquisition Integration Acquisition of AB InBev’s Irish Northern Irish and Scottish assets Completed 28 September, 2009 Experienced integration team established ahead of completion Close co-operation with AB InBev Transitional operational arrangements agreed with AB Inbev are in place and process of
Slide 18: Outlook
Outlook “Following a positive start to the first half, trading conditions in August and September have been more challenging. However, we remain on track to deliver on the objective of stabilised volumes and a full year operating profit outcome in line with our stated guidance.” “We expressed our in
Slide 19: C&C Group plc contact details
C&C Group plc P +353 1 616 1100 3rd Floor, Block 71, F +353 1 654 6272 The Plaza, Parkwest Business Park, E C&CGroup@kcapitalsource.com Dublin 12. W www.candcgroupplc.ie C&C FY Results | Slide 19