Corby Spirit and Wine Limited Class A · TSX:CSW.A
Corby Spirit and Wine Limited Class A — Shareholder Meeting (November 2016)
47 slides from Corby Spirit and Wine Limited Class A's shareholder meeting presentation, November 2016
Slide 1: Creating Win-Win Memorable Experiences
CREATING WIN-WIN MEMORABLE EXPERIENCES 2016 Annual General Meeting
Slide 2: George McCarthy, Chairman of the Board
GEORGE McCARTHY Chairman of the Board 2016 Annual General Meeting November 2016 2
Slide 3: Official Business
OFFICIAL BUSINESS 2016 Annual General Meeting November 2016 3
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, and following the recent transaction of Ungava Spirits Co. Forward-looking statements typically are
Slide 5: Official Business
OFFICIAL BUSINESS 1. Constitution of Meeting 2. Introducing the Board of Directors 3. Voting Procedures 4. Appointment of Scrutineers 5. Notice of Meeting 6. Meeting in Order 7. Review of 2015 AGM Minutes 8. 2016 Financial Annual Report, Financial Statements and Auditor’s Report 9. Scrutineers’ Repo
Slide 6: Nomination of Directors
NOMINATION OF DIRECTORS • George F. McCarthy • Claude Boulay • Paul C. Duffy • Robert L. Llewellyn • Donald V. Lussier • Patricia L. Nielsen • Patrick O’Driscoll • Thierry R. Pourchet • Antonio Sanchez 2016 Annual General Meeting November 2016 6
Slide 7: Appointment of Auditors
APPOINTMENT OF AUDITORS • Deloitte LLP 2016 Annual General Meeting November 2016 7
Slide 8: Patrick O'Driscoll, President and CEO
PATRICK O’DRISCOLL President and Chief Executive Officer 2016 Annual General Meeting November 2016 8
Slide 9: Creating Win-Win Memorable Experiences
CREATING WIN-WIN MEMORABLE EXPERIENCES • Delivering solid financial performance • Innovating in products and process • Refining our approach • Acquiring new brands • Securing our future 2016 Annual General Meeting November 2016 9
Slide 10: Delivering Solid Financial Performance
DELIVERING SOLID FINANCIAL PERFORMANCE 2016 Annual General Meeting November 2016 10
Slide 11: Our 2016 Performance
OUR 2016 PERFORMANCE +6 % % Revenue +25 Net Earnings 2016 Annual General Meeting November 2016 11
Slide 12: Growth in Spirits & Wines
GROWTH IN SPIRITS & WINES +4 % +19 % Absolut Jameson +23% Jacob’s Creek 2016 Annual General Meeting November 2016 12
Slide 13: Promoting Craft Canadian Whisky
PROMOTING CRAFT CANADIAN WHISKY +4% Absolut +103% Shipment Volume Change 2016 Annual General Meeting November 2016 13
Slide 14: Innovating in Products and Process
INNOVATING IN PRODUCTS AND PROCESS 2016 Annual General Meeting November 2016 14
Slide 15: Evolving Our Heritage and Craftsmanship
EVOLVING OUR HERITAGE AND CRAFTSMANSHIP • Launched JP Wiser’s Double Still Rye, JP Wiser’s Hopped • JP Wiser’s Hopped named best new whisky introduction at the 2016 Canadian Whisky Awards • Collaborated with LCBO to launch JP Wiser’s Last Barrels 2016 Annual General Meeting November 2016 15
Slide 16: Responding to Demand for Craft Whiskies
RESPONDING TO DEMAND FOR CRAFT WHISKIES • Released Gooderham & Worts Four Grain Whisky • Awarded top honours at Canadian and international whisky competitions 2016 Annual General Meeting November 2016 16
Slide 17: Capitalizing on New Trends
CAPITALIZING ON NEW TRENDS • Introduced ingredients for home bartending and cocktail making • Innovations in wine formats • Over 60% of incremental value in spirits and wine market coming from innovation 2016 Annual General Meeting November 2016 17
Slide 18: Refining Our Approach
REFINING OUR APPROACH 2016 Annual General Meeting November 2016 18
Slide 19: Refining Our Strategy in the U.S.
REFINING OUR STRATEGY IN THE U.S. • Reprioritizing focus on premium brands and small number of markets • High value and fast growth segment • Dedicated team building awareness • Applying learnings from U.S. to other markets 2016 Annual General Meeting November 2016 19
Slide 20: JP Wiser's "Tastes Like Whisky" Campaign
JP WISER’S “TASTES LIKE WHISKY” CAMPAIGN 2016 Annual General Meeting November 2016 20
Slide 21: Acquiring Premium Brands
ACQUIRING PREMIUM BRANDS 2016 Annual General Meeting November 2016 21
Slide 22: Domaines Pinnacle Acquisition
DOMAINES PINNACLE ACQUISITION • Acquired in September 2016 • Added premium brands • Complementary to Corby portfolio 2016 Annual General Meeting November 2016 22
Slide 23: Ungava Gin
UNGAVA GIN • Number two selling deluxe gin by volume in Canada • Flavoured by botanicals gathered from Northern Quebec • Deluxe growth product in dynamic category 2016 Annual General Meeting November 2016 23
Slide 24: Introducing Ungava Spirits Co. Ltd.
INTRODUCING UNGAVA SPIRITS CO. LTD. • Flexible micro-distilling and bottling capabilities • Operates as new wholly-owned subsidiary of Corby • Brands will complement Corby’s existing Canadian portfolio • Adds entrepreneurial unit to existing strategies 2016 Annual General Meeting November 2016 24
Slide 25: Securing Our Future
SECURING OUR FUTURE 2016 Annual General Meeting November 2016 25
Slide 26: Solidifying Our Relationship with Pernod Ricard
SOLIDIFYING OUR RELATIONSHIP WITH PERNOD RICARD • Amended Canadian representation agreements • Extended production and administrative services agreements for 10 years • Signed five-year agreement to represent Lamb’s rum in the UK 2016 Annual General Meeting November 2016 26
Slide 27: Defined Purpose & CSR Initiatives
DEFINED PURPOSE & CSR INITIATIVES 2016 Annual General Meeting November 2016 27
Slide 28: Our Company Purpose
OUR COMPANY PURPOSE CREATING WIN-WIN MEMORABLE EXPERIENCES 2016 Annual General Meeting November 2016 28
Slide 29: A Leading Employer
A LEADING EMPLOYER • One of the 50 Best Workplaces in Canada for the fifth year in a row • Also named one of Greater Toronto’s Top 100 Employers for second year in a row 2016 Annual General Meeting November 2016 29
Slide 30: Promoting Responsible Consumption
PROMOTING RESPONSIBLE CONSUMPTION 3rd year of Corby Safe Rides Take the Pledge #ModerationMonday partnership with the TTC on New Year’s Eve 2016 Annual General Meeting November 2016 30
Slide 31: 6th Annual Responsib'all Day
6TH ANNUAL RESPONSIB’ALL DAY 2016 Annual General Meeting November 2016 31
Slide 32: Antonio Sanchez, Chief Financial Officer
ANTONIO SANCHEZ Chief Financial Officer 2016 Annual General Meeting November 2016 32
Slide 33: Delivering Value, Growth and Returns for Shareholders
Creating win-win memorable experiences = delivering value growth and returns for shareholders 2016 Annual General Meeting November 2016 33
Slide 34: FY16 Net Earnings and Revenue
FY16 NET EARNINGS AND REVENUE • Increased commission revenue +25% • Bulk whisky sale to rebalance Net Earnings maturing inventories • Strong H2 performance domestically • International business disrupted by UK distributor +6% transition Total Revenue 2016 Annual General Meeting November 2016 34
Slide 35: Domestic Retail Sales
DOMESTIC RETAIL SALES • Canadian whisky growth driven by +1% innovation and premium offerings • Difficult holiday period but strong H2 turnaround for Polar Ice • Expanding innovation in mixable liqueurs category • Defending Lamb’s rum regional strongholds and launching new flavours 2016 Annual Gener
Slide 36: Cost of Sales: Margin Quality
COST OF SALES: MARGIN QUALITY • Cost of sales broadly flat • Focus on margin quality • Avoidance of low ROI promotional programs 2016 Annual General Meeting November 2016 36
Slide 37: Marketing, Sales and Administration
MARKETING, SALES AND ADMINISTRATION • Marketing expenses aligned with refined US strategy • Focus on premium Canadian whisky craft range incubation -1% Spend 2016 Annual General Meeting November 2016 37
Slide 38: Operating Cash
OPERATING CASH • Consistent with overall increase in net earnings • Ability to acquire Domaines Pinnacle spirits assets 2016 Annual General Meeting November 2016 38
Slide 39: 2016 Summary
2016 SUMMARY • Strong financial performance • Refined international business strategy and investment model • Strong innovation pipeline • Operational effectiveness and organizational capabilities in place 2016 Annual General Meeting November 2016 39
Slide 40: Q1 2017
Q1 2017 • Shipment volume -2% and value -6% • Domestic shipment primarily impacted -5% +2% by shift in customer order timing Revenue Net Earnings • Transition to new Lamb’s UK distributor positively impacted international business • Further commission income stream growth (+5%) +5% EPS • Tight cost
Slide 41: Creating Superior Returns
CREATING SUPERIOR RETURNS • Domaines Pinnacle acquisition Scale up brands’ volume and value growth prospects Targeting EPS neutral by first anniversary of acquisition • Other growth avenues Further M&A exploration – Maintain cash reserve to act quickly Investment in existing assets, innovati
Slide 42: Patrick O'Driscoll, President and CEO
PATRICK O’DRISCOLL President and Chief Executive Officer 2016 Annual General Meeting November 2016 42
Slide 43: Looking Ahead
LOOKING AHEAD • Addressing external challenges to minimize impact • Canadian whisky opportunity • Competing in premium growth segments • Ungava Gin as differentiator X.X% • Extended production and services agreements 2016 Annual General Meeting November 2016 43
Slide 44: Regular Dividend
REGULAR DIVIDEND $0.21 +10% • • Paid on December 9, 2016 Shareholders on record as of Per Share Increase X.X% November 25, 2016 2016 Annual General Meeting November 2016 44
Slide 45: George McCarthy, Chairman of the Board
GEORGE McCARTHY Chairman of the Board 2016 Annual General Meeting November 2016 45
Slide 46: Thank You
THANK YOU 2016 Annual General Meeting
Slide 47: 2016 Annual General Meeting
2016 Annual General Meeting 47
Corby Spirit and Wine — Shareholder Meeting (November 2016) on 6ix