C&C Group PLC · LSE:CCR
C&C — FY2013 Earnings Presentation
25 slides from C&C's earnings presentation, May 15, 2013
Slide 1: 2013 Annual Results
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any shares or other securities of C&C Group plc (the "Company"). The presentation contains forward-looking statements, including statements about the Company's intentions,
Slide 3: FY 2013 Performance Review
FY 2013 Performance Review Strategic Development & Transition Outlook Dividend per share up 10% to 9 cent
Slide 4: FY 2013 Highlights
FY 2013 | Highlights Operating profit +2.4% to €113.9m Operating margin +0.8ppts to 23.9% Tennent’s operating margin +5.7ppts International volume growth of 55% Effective cost control & operating efficiency Adjusted diluted EPS up 0.4% to 27.7cent Dividend per share up 7% to 8.75 cent Slide 4
Slide 5: ROI & UK Performance
FY 2013 | ROI & UK Performance ROI Volume decline 1.1%; beer offset weak cider FY 2013 EBIT Operating profit stable in H2 €38.5m Shift from On-trade to Off-trade slowing (11.9%) UK | Cider Volume decline 15% in weak market FY 2013 EBIT Magners volume down 13.9% €30.9m Robust consumer health scores o
Slide 6: International Performance
FY 2013 | International Performance International Total volume +55%; +35% excluding VHCC FY 2013 EBIT Operating profit €9.1m; €7.3m excluding VHCC €9.1m Continuing investment in VHCC in FY2014 +33.8% Cider Magners volumes +4% One-off issues in Australia: volume +10% excluding Australia Hornsby’s re-
Slide 7: Net Revenue
FY 2013 | Net Revenue €m 520 23.8 500 (9.2) 16.0 480.8 480 476.9 (6.6) 6.9 460 (34.8) 440 420 400 FY12 Currency ROI Cider UK Tennent's UK International Third Party Brands FY13 UK Slide 7
Slide 8: Operating Profit
FY 2013 | Operating Profit €m 120 2.2 1.3 113.9 2.3 111.2 7.8 110 (5.2) (5.7) 100 90 FY12 Currency ROI Cider UK Tennent's UK International Third Party Brands FY13 UK Slide 8
Slide 9: Free Cash Flow
FY 2013 | Free Cash Flow €m 160 FCF Conversion FY 2013 40.4% 140 21.7 FY 2012 78.1% 120 113.9 (21.8) 100 (16.7) 80 (24.1) 60 (8.5) 54.8 (4.8) (4.9) 40 Slide 9
Slide 10: Balance Sheet
FY 2013 | Balance Sheet €m 150 54.8 100 (21.2) 68.3 50 0 -50 -100 5.3 6.6 (0.8) (123.4) (229.8) (3.7) (2.9) -150 Net cash - 1 Free cash flow Dividends paid Acquisition of Acquisition of Investment in Issue of new Share sale by Other Net debt - 28 March 2012 businesses brand associate/JV shares Emplo
Slide 11: FX, Tax & Financing Costs
FX, Tax & Financing Costs FX FY2014 transaction currency hedges in place: Stg £0.81 & US$1.24 Tax Guiding c. 15% for FY2014 Financing Costs Move in line with a higher average net debt in FY2014 Slide 11
Slide 12: Summary
Summary Core markets challenging Tennent’s performing strongly International volumes growing Effective cost control & operating efficiency Continued earnings growth Slide 12
Slide 13: Strategic Development & Transition
FY 2013 Performance Review Strategic Development & Transition Outlook
Slide 14: Strategy: Strategic Development 2009-2013
2009 – 2013 | Strategic Development Building a Accelerated development Sustainable Strategy of international markets International Cider-led Multi-Beverage Consolidation & investment Business in core markets FY2009 | EBIT (€82m*) FY2013 | EBIT (€113.9m) Third S&L Party 17% 4% Tennent's ROI 27% 34% C
Slide 15: Strategic Development | International
Strategic Development | International International Volume 350 (kHl) 326 300 +55% Cider 250 Magners North America +10%: US +6%, Canada +36% 210 Magners Europe: France +13%, Spain +11% 200 20% Magners volume in other (growing) markets Gaymers volumes +3%; growth in Spain & Sweden 150 120 Beer 100 82
Slide 16: International | US Infrastructure build out
International | US Infrastructure build out C&C Group 2000 to 2011 to 2013 US operations 2011 2012 Onwards Magners Magners Woodchuck Hornsby’s Magners Hornsby’s Wyder’s Blackthorn Brands 1 2 5 Employees 15 32 150 (total) Employees 11 24 55 (of which sales) Employees 0 1 3 (of which chain focused) St
Slide 17: Strategic Development | Core Markets
Strategic Development | Core Markets Build strong/brand market combinations Multi-beverage; channel differentiation Decentralised, customer centric model Customer and brand investment Cost leadership Agency Brands Slide 17
Slide 18: Innovation & Investment
Innovation & Investment Slide 18
Slide 19: 2014 | Integration & Transition Period
2014 | Integration & Transition Period Internationalisation of cider & cider portfolio Integration of sales organisations complete; focus on execution Selective investment in other emerging cider markets Investment in core markets for long-term Integration of ROI business ongoing Manufacturing and l
Slide 20: Outlook
FY 2013 Performance Review Strategic Developments & Transition Outlook Dividend per share up 10% to 9 cent
Slide 21: Outlook
Outlook ROI: Multi-beverage; Gleeson’s to transform business model UK: Intense cider competition; focus on brand investment Tennent’s: Focus on multi-beverage International: Accelerating business; investment in opportunity Portfolio: Continuing innovation Operating Cost: Cost leadership Cash flow: F
Slide 22: Appendix
Appendix Strategic Developments & Transition Investment Case & Outlook Dividend per share up 10% to 9 cent
Slide 23: Segmental Analysis
Segmental Analysis ROI FY 2013 Change UK: Cider FY 2013 Change Const Curr. Const Curr. Net revenue €92.2m (9.1%) Net revenue €137.8m (20.2%) Operating profit €38.5m (11.9%) Operating profit €30.9m (15.6%) Operating margin 41.8% (1.3ppts) Operating margin 22.4% +1.2ppts Volumes kHL 615 (1.1%) Volumes
Slide 24: Risk Factors
Risk Factors Competitive threat Shift from on to off-trade Alcohol duty risk Exchange rate risk Weak business conditions in core markets Transaction specific risk Slide 24
Slide 25: www.candcgroupplc.com
www.candcgroupplc.com www.bulmers.ie www.gaymers.co.uk www.magners.com www.hornsbys.com www.tennents.com www.woodchuck.com