Davide Campari-Milano N.V. · MIL:CPR
Davide Campari-Milano — Merger or Acquisition (March 2014)
19 slides from Davide Campari-Milano's merger presentation, Mar 12, 2014
Slide 1: Acquisition of Forty Creek Distillery Ltd.
Acquisition of Forty Creek Distillery Ltd. Investor presentation 12 March 2014 Slide 1 FCD acquisition
Slide 2: Agenda
Strategic Rationale Acquired Business Key metrics Conclusion Slide 2 FCD acquisition
Slide 3: Campari acquires high-end Canadian whisky Forty Creek
Campari acquires high-end Canadian whisky Forty Creek > Gruppo Campari has reached an agreement to acquire 100% of Forty Creek Distillery Ltd. (‘FCD’), a leading independently owned spirits company in Canada, owner of a strong portfolio of brands including whisky, vodka, brandy, rum and liqueurs > W
Slide 4: FCD Acquisition: Strategic Rationale
FCD Acquisition: Strategic Rationale Strategic Rationale > Enter the large and growing Canadian whiskey segment with a leading, profitable and fast growing brand in North America > Further premiumise Campari’s brand portfolio, driving richer product mix, effectively positioning itself to capitalize
Slide 5: Campari expands into a new growth category
Campari expands into a new growth category Global premium brands(1) categories by volume 2012 Group’s current presence in the category New category Newly acquired 9L Cases (million) portfolio (1) IWSR selected quality: excl. low price and value brands Slide 5 FCD acquisition
Slide 6: Acquired Business
Strategic Rationale Acquired Business Key Metrics Conclusion Slide 6 FCD acquisition
Slide 7: FCD Brand Portfolio Overview
FCD Brand Portfolio Overview > FCD has a strong portfolio of brands including whisky, vodka, brandy, rum and liqueur. Whisky brand Forty Creek represents c.62% of the overall portfolio net sales in 2013 (1) whilst vodka accounts for c.23% > From 2009(1) to 2013(1), FCD has grown its net sales from C
Slide 8: Brand Attributes
Forty Creek whisky portfolio Forty Creek whisky portfolio volume split (by geography and expressions, LTM Sep’13) Source: FCD > Forty Creek is positioned as a high-end, handcrafted whisky brand > The product range has been successfully innovated by introducing new expressions and enhancing the brand
Slide 9: Forty Creek whisky portfolio (cont'd)
Forty Creek whisky portfolio (cont’d) > It is the core of the brand family, a top selling Canadian whisky and the fastest growing Barrel select brand in the category (+12% in Canada, LTM Sept 2013) > In its home market, Ontario, it is the 4th largest Canadian whisky brand and the fastest growing bra
Slide 10: FCD Igor Vodka & Regional Brands
FCD Igor Vodka & Regional Brands Igor Vodka > Consists of Prince Igor Premium and Prince Igor Extreme > Prince Igor Premium is the core brand, and is positioned within the standard price range. Prince Igor Extreme was developed as an opportunity to extend brand presence into the premium price catego
Slide 11: Global market for Canadian whisky category
Global market for Canadian whisky category > The Canadian spirit market now represents c.17.5 million cases annually. Whisky has a 27% share of the spirit business in Canada. The premium and deluxe price tiers represent c.72% of the spirit sales in Canada. Ontario is the largest spirit market, comma
Slide 12: Canadian whisky category - A focus on US Market
Canadian whisky category - A focus on US Market > In the US, whisky is the second largest selling spirit behind vodka with 52 million 9L cases in 2013 > Within the whisky category, the Canadian whisky has 31% of the volume share, slightly behind Bourbon. Overall, Canadian whisky commands c. 8% share
Slide 13: The US opportunity for Forty Creek whisky
The US opportunity for Forty Creek whisky > In the past year, Canadian whisky had a volume growth of +2.9% and value growth of +6.1%, with solid contribution from pricing > The high-end spirit price segment in the US experienced tremendous growth from 2012 to 2013. For Canadian whisky specifically,
Slide 14: Manufacturing & Hospitality Center
Manufacturing & Hospitality Center Distillery Location > The distillery is conveniently located in the town of Grimsby, Ontario, Canada. It’s 75 km from Toronto and a 30 minute drive to the main US border accessing the North Eastern United States Manufacturing Facilities > FCD has a modern 175,000 s
Slide 15: Key Metrics
Strategic Rationale Acquired Business Key Metrics Conclusion Slide 15 FCD acquisition
Slide 16: Key Metrics
Key Metrics FCD key financials > 2008A-2013A (1) CAGR sales value +11.9% > LE 2014 (1) Sales of CAD$ 39.5 million (+ 15.6% growth vs. 2013A (1)) Deal structure > Total purchase price for 100% of FCD is CAD$ 185.6 million (€ 120.5 million at the current exchange rate) on cash and debt free basis > Co
Slide 17: Conclusion
Strategic Rationale Acquired Business Key Metrics Conclusion Slide 17 FCD acquisition
Slide 18: Conclusion
Conclusion Looking into the future, thanks to the acquired whisky portfolio of FCD, Gruppo Campari is well positioned to: Short term… > Develop the acquired portfolio in its core markets (Canada and US), successfully exploiting the brands’ high-end and handcrafted attributes within the growing and p
Slide 19: For additional information
For additional information: Investor Relations - Gruppo Campari Phone: +39 02 6225 330; Fax: +39 02 6225 479 E-mail: investor.relations@campari.com www.camparigroup.com
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