Corby Spirit And Wine Limited Class A · TSX:CSW.A
Corby Spirit And Wine Limited Class A — Shareholder Meeting (2014)
63 slides from Corby Spirit And Wine Limited Class A's shareholder meeting presentation, 2014
Slide 1: I Love Corby
Slide 2: George McCarthy, Director and Chairman
GEORGE McCARTHY Director and Chairman of the Board
Slide 3: Official Business
Na OFFICIAL BUSINESS -
Slide 4: Forward Looking Statements
FORWARD LOOKING STATEMENTS Today’s presentation contains forward-looking statements, including statements concerning possible or assumed future results of operations of Corby Spirit and Wine Limited. Forward-looking statements typically are preceded by, followed by or include the words “believes”, “
Slide 5: Patrick O'Driscoll, President and CEO
PATRICK O’DRISCOLL President and Chief Executive Officer
Slide 6: Canadian Market Conditions - Fiscal Year 2014
CANADIAN MARKET - FISCAL YEAR 2014 CONDITIONS Spirits - 1% Wine + 2%
Slide 7: Positive Results
POSITIVE RESULTS • Market share gain in spirits • Progress in key battlegrounds • New and relevant products • On top of digital revolution
Slide 8: 150 Year Heritage
7 150 YEAR HERITAGE \ y
Slide 9: Whisky Pioneers
WHISKY PIONEERS
Slide 10: Whisky Renaissance
WHISKY RENAISSANCE • Corby positioned perfectly • Flavoured whisky category is HOT • Renewed interest in Super-Premium Canadian whiskies
Slide 11: Capitalizing on Canadian Whisky
CAPITALIZING ON CANADIAN WHISKY At home and in the US
Slide 12: J.P. Wiser's
J.P. WISER’S Rebranded in Canada
Slide 13: Wiserhood Campaign
NS WISERHOOD CAMPAIGN
Slide 14: Five Year Agreement
FIVE YEAR AGREEMENT • To represent certain Corby brands in the US
Slide 15: Pernod Ricard USA
PERNOD RICARD USA • Access to one of the strongest spirits distribution network in the US
Slide 16: US Export Strategy
US EXPORT STRATEGY • Strong contribution to top line revenue • Margin enhancing • Exports up 28%
Slide 17: J.P. Wiser's US Launch
J.P. WISER’S US LAUNCH • Encouraging early results • 15 key States • Strong growth opportunity
Slide 18: Premium Imported Whisky
PREMIUM IMPORTED WHISKY • Sales +25% for Jameson • Sales +8% for The Glenlivet
Slide 19: Slide 19
Slide 20: People + Brands + Tools = Results
PEOPLE + Market share gain Growth in the West BRANDS + National account listings Customer relationships TOOLS = RESULTS
Slide 21: CRM Tool
CRM TOOL • Transformed sales approach • Better alignment between strategy and field • Full visibility on performance objectives
Slide 22: Digital Revolution
\ / DIGITAL REVOLUTION
Slide 23: Absolut
ABSOLUT • ABSOLUT shipment +5% • Extended exclusive representation in Canada through 2021
Slide 24: Absolut Creativity & Innovation
ABSOLUT Creativity & Innovation
Slide 25: Absolut
2 ABSOLUT
Slide 26: Absolut Makerfest
aw! ABSOLUT MAKERFEST
Slide 27: Absolut Makerfest
= Cp) LU LL or LU < < = ABSOLUT
Slide 28: Absolut Makerfest
ABSOLUT MAKERFEST
Slide 29: Polar Ice 90° North
POLAR ICE 90° NORTH • Quadruple distilled and chill-filtered in small batches • Cold activated label
Slide 30: Jacob's Creek
JACOB’S CREEK • Jacob’s Creek grew by 11% • The Bachelorette TV campaign • Retail volume of Jacob’s Creek Moscato up 114%
Slide 31: Campo Viejo and Stoneleigh
CAMPO VIEJO AND STONELEIGH • Campo Viejo shipments grew 39% • Stoneleigh shipments up 11%
Slide 32: Pernod Ricard New Wines
PERNOD RICARD NEW WINES
Slide 33: The Wine Group
THE • Building a WINE premium GROUP strategy
Slide 34: Women Are a Powerful Consumer Group
WOMEN ARE A POWERFUL CONSUMER GROUP
Slide 35: Slide 35
Slide 36: John Leburn, Chief Financial Officer
JOHN LEBURN Chief Financial Officer
Slide 37: Key Questions
KEY QUESTIONS • Are we happy with the results? • Maximizing potential? • Well positioned for new opportunities? • Are we operating efficiently? • Organic growth model vs. acquisition? • Do we understand the needs of our ? shareholders?
Slide 38: Revenue from Corby-Owned Brands
ARE WE HAPPY WITH THE RESULTS? $107.9 2012 $109.7 Revenue from 2013 Corby–owned brands $116.4 2014 (in millions of Canadian dollars)
Slide 39: Margin Quality
ARE WE HAPPY WITH 53% THE RESULTS? 2012 57% 2013 59% Margin Quality 2014 % margin from case goods and other services (excluding commissions)
Slide 40: Earnings per Share, Core Business
ARE WE HAPPY WITH THE RESULTS? $0.92 2012 $0.95 Earnings per share, Core 2013 Business $0.88 2014 (in Canadian dollars)
Slide 41: Cash Conversion
ARE WE HAPPY WITH 100% THE RESULTS? 2012 122% 2013 126% Cash Conversion 2014 % of cash from operating activities divided by net earnings
Slide 42: Are We Maximizing the Potential of Our Core Business?
ARE WE MAXIMIZING THE POTENTIAL OF OUR CORE BUSINESS? • Market share in spirits grew by 10 basis points • Whisky, Vodka, Australian and Spanish wine star performers
Slide 43: Are We Well-Positioned for New Opportunities?
ARE WE WELL-POSITIONED FOR NEW OPPORTUNITIES? • Capitalizing on the big trends • Exploiting attractive whitespaces • Maximize international potential
Slide 44: Are We Operating Efficiently?
ARE WE OPERATING EFFICIENTLY? • Focused on efficiencies • Realigned resources • Moved liqueur production to Windsor
Slide 45: Organic Growth vs. Acquisitions?
ORGANIC GROWTH VS. ACQUISITIONS? • Cost of potential targets high • Cash on hand if the right opportunity • Organic model offers superior arises risk/return profile
Slide 46: Do We Understand the Needs of Our Shareholders?
DO WE • 20+ meetings with UNDERSTAND investors • Consistent dividend yield THE NEEDS OF OUR of 3.5% SHAREHOLDERS?
Slide 47: First Quarter Performance
FIRST QUARTER PERFORMANCE • Drop in net earnings due to o Cycling against US pipeline fill o US promotional program
Slide 48: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS • Revenue from domestic case goods +3% • International case goods volume - 49% • Continuing commissions flat • Margin quality down by -1% • Marketing, sales and admin. +13% • Strong cash position +$106m
Slide 49: In Conclusion
IN CONCLUSION • Fundamentals of domestic operation strong • Move into the US the cause of volatility
Slide 50: Slide 50
Slide 51: Looking Out for Canadians
LOOKING OUT FOR CANADIANS • Under-age drinking • Marketing codes of practice • Consumer information / innovate responsibly • Drinking and driving • Support our retailers
Slide 52: TTC New Year's Eve Partnership
TTC NEW YEAR’S EVE PARTNERSHIP • Three year commitment • Gained national awareness • Promotion of Don't Drink and Drive message
Slide 53: Retailer Responsibility
RETAILER RESPONSIBILITY • Supporting national golf tournaments • Provide information on responsible drinking • Alcohoot device prizes
Slide 54: Extraordinary Efforts of Corby Employees
EXTRAORDINARY EFFORTS OF CORBY EMPLOYEES
Slide 55: Employee Engagement
EMPLOYEE ENGAGEMENT • High engagement scores • Increased training and communication • Upgraded sales capabilities
Slide 56: Slide 56
Slide 57: Positioned for Growth
POSITIONED FOR GROWTH • Strong shareholder value • A dynamic leader • Consistent dividend flows • Cash balance for growth opportunities • Organic growth model
Slide 58: Regular Dividend
REGULAR DIVIDEND • Increasing percentage • Quarterly payment of $0.19/share payout to 85% of net EPS • + 5.5% vs LY
Slide 59: Special Dividend
SPECIAL DIVIDEND • $0.62/share – January 2015 • Represents approx. $17.7M
Slide 60: Slide 60
Slide 61: Further Business
J FURTHER BUSINESS -
Slide 62: Questions
J QUESTIONS -
Slide 63: Slide 63