Remy Cointreau Sa · EURONEXT:RCO
Remy Cointreau Sa — FY2023-24 Earnings Presentation
44 slides from Remy Cointreau Sa's earnings presentation, Jun 6, 2024
Slide 1: Rémy Cointreau 2023-24 Full Year Results
Co) REMY COINTREAU 2023-24 FULL YEAR RESULTS June 6,2024 Marie-Amélie de Leusse, Chairwoman Eric Vallat, CEO Luca Marotta, CFO » 414-20, Re. 300 =. — ; camel. S SoS y —, = S | es ANN\
Slide 2: Introduction
Introduction Marie-Amélie de Leusse, Chairwoman
Slide 3: Our corporate culture, our strategic vision, our teams' passion and dedication are our best assets
Our corporate culture, our strategic vision, our teams’ passion and dedication are our best assets 2023-24 was a challenging year as we are operating in a complex environment, Facing several headwinds at the same time ... but not for the first time in our Long history We are well-armed to navigate p
Slide 4: Highlights
Highlights Eric Vallat, CEO
Slide 5: Highlights: Solid resilience in a tough context
Highlights Solid resilience in a tough context A year packed with impactful initiatives —and strong execution RM value depletions: +LSD% i.e. >+75% vs 4Y Rémy Martin market share gains RM XO market share gains
Slide 6: Maintain long-term vision despite short-term headwinds
Highlights Maintain long-term vision despite short-term headwinds High level of investments (20% of sales i.e.+6 pts vs 2019-20) despite short-term headwinds US value depletions down mid-teens in 2023-24 Consistent pricing policy will strengthen desirability over time @REMYMARTIN x USHER
Slide 7: 2023-24 Highlights: Tough year with important achievements
2023-24 Highlights Tough year with important achievements A YEAR OF STRONG RECOVERY FOR INNOVATIONS TO. STRONG RISE IN FOR GTR PREPARE FOR TOMORROW E-COMMERCE EXPAND REGIONAL BRANDS ACCELERATE INCUBATOR BRANDS
Slide 8: Generating responsible growth
2023-24 Highlights Generating responsible growth a, + Removal of gift boxes for 1738 in the US and EMEA: 79% of naked bottles at Group level MIP + Revamp of Bruichladdich’s Classic Laddie bottle (32% lighter, 60% of recycled glass and no tin): -65% in CO2 + Transport CO2 emissions: -21% (biofuel for
Slide 9: FY 2023-24 sales and operating profit summary
-19.2%* -1.3 pts* -27.8%* 25.5% of sales €145m -22.9% -0.1 pts -3.0 pts* vs. €100m expected Due to rounding, the sum of values presented in this presentation may differ from totals as reported. Such differences are not material. 9 (*) Organic terms
Slide 10: FY 2023-24 sales breakdown by division
FY 2023-24 sales breakdown by division Cognac Liqueurs & Spirits Group li Cognac i Liqueurs & Spirits I Partner Brands 33% Group sales breakdown 2% 65% -25.1% -4.6% -19.2% +5.8% vs. 4Y +474% vs. 4Y +16.2% vs. 4Y Group Brands: -19.4% Partner Brands: -6.1% 10 Organic sales growth
Slide 11: FY 2023-24 sales breakdown by region
FY 2023-24 sales breakdown by region +0.7% AMERICAS +7.6% vs. 4Y -39.6% -4.1% vs 4Y +2.0% +514% vs. 4Y Group: -19.2% 38% Group sales breakdown mAmericas gpAPAC gpEMEA Organic sales growth uw
Slide 12: Current Operating Margin by division: Cognac
FY 2023-24 Current Operating Margin by division Cognac: -33.0% organic decrease in COP Sales €778.6 «= rrr Reported COP/Sales : -2.7 pts ———-—--- Organic change (%) -25.1% Volume / Price-Mix -29.7% /+4.6% Current Operating Profit €265.7m -1.8 pts +011 pts -2.2 pts +12 pts bere = —— COGS & Logistics:
Slide 13: Current Operating Margin by division: Liqueurs & Spirits
FY 2023-24 Current Operating Margin by division Liqueurs & Spirits:+18.0% organic growth in COP Sales €387.8m prrerereectenees Reported COP/Sales : +3.2 pts : Organic change (%) 4.6% Volume /Price-Mix -6.4%/+1.8% TO 40.4 pts Current Operating Profit €56.7m +12 pts | -03 pts | P| | | COGS & Logistics
Slide 14: 2029-30 plan: where do we stand?
2029-30 plan: where do we stand? Still ahead of our 10Y roadmap Gross Margin*® 2019-2030 111% 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 (Initial roadmap target) COP Margin* 2019-2030 21.0% 23.3% 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 (Initial roadmap target) 25.7% In organic terms - A
Slide 15: Financial Results
espIRITS A BUSINESS GOLD 2023 — * ill hn 24 am ¢ ae i Financial Results Luca Marotta, CFO
Slide 16: FY 2023-24 Current Operating Profit
FY 2023-24 Current Operating Profit Ending March (in €m) FY 2023-24 FY 2022-23 Reported % «= O”eanic % a Net Sales 11941 1548.5 -22.9% -19.2% 416.2% Gross Profit 850.2 1103.8 -23.0% -20.6% 423.3% % of sales 71.2% 71.3% -0.1 pts -13 pts +4.0 pts Sales and marketing expenses (420.9) (521.6) 19.3% 15.4
Slide 17: FY 2023-24 Group Current Operating Margin
FY 2023-24 Group Current Operating Margin ue Reported COP/Sales : -2.3 pts a — +0.2 pts bile Holey COGS & Logistics:-14 pts Es Price: +10 pts i Mix: -0.9 pts H Organic COP/Sales: -3.0 pts FY 22/23 Gross A&P Distribution/Other Currency COP/Sales Margin FY 23/24 COP/Sales aw
Slide 18: Solid execution of cost-savings plan
Solid execution of cost-savings plan One-off savings ° A&P: 60% * OVERHEADS: 40% Structural savings 18
Slide 19: FY 2023-24 Net profit
FY 2023-24 Net profit Ending March (in €m) FY 2023-24 FY 2022-23 Reported % © O”sanic Organic % Current Operating Profit 304.4 429.6 -29.1% -27.8% 434.9% Other non-current income (expenses) (12.8) (3.1) - - - Operating profit 291.6 426.5 -31.6% -30.4% 442.1% Net Financial income (charge) (38.5) (17.
Slide 20: FY 2023-24 Non-current items
FY 2023-24 Non-current items Ending March (in €m) FY 2023-24 FY 2022-23 Net profit - Group share 184.8 293.8 Other non-current income expenses 12.8 3.1 Non-current tax items (2.8) (0.4) Net profit excluding non-current items - Group share 194.8 296.6 20
Slide 21: FY 2023-24 Net Financial expenses
FY 2023-24 Net Financial expenses Ending March (in €m) FY 2023-24 FY 2022-23 Net debt servicing costs (17) (117) Net currency gains/losses (2.0) (2.5) Other financial expenses (net) (4.8) 4) (38.5) (17.6) Net financial income (charges) 21
Slide 22: FY 2023-24 Net debt/Cash flow
FY 2023-24 Net debt/Cash flow Ending March (in €m) FY 2023-24 FY 2022-23 Change Opening net financial debt (1 April) (536.6) (353.3) -183.3 Gross operating profit (EBITDA) 356.4 481.6 -125.2 WCR for eaux-de-vie and spirits in ageing process (116.9) (152.6) +357 Other working capital items (27.2) (42
Slide 23: FY 2024-25E Foreign exchange - Hedging impact
FY 2024-25E Foreign exchange - Hedging impact 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25E Average EUR/USD conversion rate 1.11 1.17 1.16 1.04 1.08 1.09 Average EUR/USD hedged rate 1.16 1.17 1.17 1.11 1.10 1.08 ‘Average EUR/CNY conversion rates 77S-—=—(i(iti‘ié‘iSSCSC*«S m4 «779 775 Average EUR/
Slide 24: Balance sheet at March 31, 2024
Balance sheet at March 31,2024 in % (€m) March. \ 2024 Non-current 1,037 31% assets Current 2,240 66% Assets excl. cash OW inventories 1963 58% Cash 93 3% Total Assets 3,371 100% /nventories/Assets 58% 2,109 1,816 14 3,187 66% 57% 2% 100% 57% Shareholders’ equity Current and Non-current liabilities
Slide 25: FY 2023-24 ROCE
FY 2023-24 ROCE 28.5% 16.9% : 14.2% 14.6% Cognac Liqueurs & Spirits 25.7% 16.5% Group Brands 2022-23 2023-24 6.2% Partner a -6.6% 24.4% 15.5% Group 25
Slide 26: FY 2023-24 Changes in capital employed
FY 2023-24 Changes in capital employed (Mg) +148.1 (410.4%) +45.3 ——s (413.4%) +€197.2m | +11.2% +3.8 March-23 Reported Cognac Liqueurs & Spirits Partner Brands March- 24 Organic Currency March-24 Reported 26
Slide 27: • • • o o
• • • o o 200 180 160 140 120 100 80 60 40 20 0 27
Slide 28: Outlook
Outlook Eric Vallat, CEO
Slide 29: Staying the course while preparing for recovery
Staying the course while preparing For recovery & Reignite growth, leveraging more sell-out driven organization C1) Reduce layers to simplify process and implement faster decisions (net reduction of 10% in staff) e Deploy new sales structure with only 2 divisions, mirroring distributors’ Footprint :
Slide 30: L&S - Leverage keys to success to sustain good momentum
o • • • • o o o o L&S - Leverage keys to success to sustain good momentum o o o 30
Slide 31: Expand our commercial capabilities
o o o Expand our commercial capabilities o o o o o 31
Slide 32: Prepare for the Future & seize growth opportunities in EMEA & RoA
Staying the course while preparing For recovery Prepare for the Future & seize growth opportunities in EMEA & RoA EMEA: New organization in place since April 1, 2024 EMEA: refocus strategy and KPI’s onto basics o —Regroup markets with common business stakes Boost Awareness through more targeted inve
Slide 33: In a nutshell...
In a nutshell... HEADWINDS AND LOW VISIBILITY VALUE STRATEGY CONFIRMED* Inflation and impact on consumption 66% of on-trade clients favor quality over quantity US destocking 70% of cocktail drinkers would pay more for quality spirits China disappointing post-covid recovery 56% of GenZ respondents wo
Slide 34: 2024-25: a year of transition
— a year of transition The Group expects GRADUAL RECOVERY IN SALES OVER THE COURSE OF THE YEAR... TO PROTECT ITS PROFITABILITY: Rigorous cost control Implementation of its value strategy Continued investment to prepare for tomorrow Mixed FX effects for the year: Rémy Cointreau has maintained a lead
Slide 35: Appendices
Appendices
Slide 36: Quarterly sales by division
Quarterly sales by division In€m Q1 23/24 Q1 22/23 Reported % Organic % Cognac 155.1 2923 46.9% 447% Liqueurs & Spirits 95.0 109.7 13.5% 14% Subtotal: Group Brands 250.0 402.0 -37.8% “35.6% Partner Brands 75 79 54% 4.6% Total 257.5 409.9 -37.2% 733.0% In€m Q2 23/24 Q2 22/23 Reported % Organic % Cogn
Slide 37: Quarterly sales by division
Quarterly sales by division In€m Q3 23/24 Q3 22/23 Reported % Organic % Cognac 1971 314.0 ~372% “33.9%. Liqueurs & Spirits 146 144 +04% 443% Subtotal: Group Brands 311.8 428.1 -27.2% -23.7% Partner Brands 81 95 -14,0% “13.5% Total 319.9 437.6 -26.9% -23.5% In €m 9M 23/24 9M 22/23 Reported % Organic
Slide 38: Quarterly sales by division
Quarterly sales by division In€m H2 23/24 H2 22/23 Reported % Organic % Cognac 362.6 461.8 215% 18.1% Liqueurs & Spirits 1811 204.4 114% 95% Subtotal: Group Brands $43.7 666.3 -18.4% 15.5% Partner Brands 13.7 151 -91% 89% Total 557.4 6814 18.2% 15.3% In€m FY 23/24 FY 22/23 Reported % Organic % Cogna
Slide 39: Current Operating Profit by division
Current Operating Profit by division COP by division (in €m) FY 2023-24 FY 2022-23 Reported % Organic % Cognac 265.7 405.2 ~34.4% ~33.0% Liqueurs & Spirits 56.7 48.1 +18.0% +18.0% Subtotal: Group Brands 322.4 453.3 -28.9% -276% Partner Brands (0.3) 01 = 2 Holding Company costs (177) (23.7) 25.5% 253
Slide 40: Foreign exchange - Hedging impact
Foreign exchange - Hedging impact Hedged rate €/$ Average €/$ — 1.04 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 March March March March March March \ 2023-24 March 40
Slide 41: Key events during the year
Key events during the year * July 20, 2023 * — July 26, 2023 * September 28, 2023 * October 2, 2023 * March 29, 2024 Combined General Meeting of 20 July 2023 The meeting approved the renewal of the directorships of Laure Hériard Dubreuil, for a period of three years. The meeting also approved the ap
Slide 42: Post-closing events
Post-closing events May 22, 2024 Rémy Cointreau and ecoSPIRITS announce Global Licensing Agreement: expansion in the UK and launch in the USA Rémy Cointreau and ecoSPIRITS have announced a four-year global licensing agreement, bolstering their existing partnership in the United Kingdom and launching
Slide 43: Upcoming financial publications
Upcoming financial publications Shareholders’ meeting 2024-25 Q1 Sales MOUNT GAY. Barbados Rum 770), 2024-25 Q2 Sales 2024-25 H1 Results
Slide 44: Rémy Cointreau
@) REMY COINTREAU 300 =.