Remy Cointreau Sa · EURONEXT:RCO
Remy Cointreau Sa — Remy Cointreau Sa Ord — FY2020/21 Earnings Presentation
46 slides from Remy Cointreau Sa's earnings presentation, Jun 3, 2021
Slide 1: 2020/21 Full Year Results
Slide 2: Marc Hériard-Dubreuil, President
Marc Hériard-Dubreuil, President
Slide 3: Rémy Cointreau emerged stronger from crisis
Rémy Cointreau emerged stronger from crisis o o o • • o 3
Slide 4: Solid progress towards our sustainability journey
Solid progress towards our sustainability journey • • • • • • • 4
Slide 5: Introduction
Introduction Eric Vallat, CEO
Slide 6: Covid-19 has accelerated long-lasting consumer trends
Covid-19 has accelerated long-lasting consumer trends Well-positioned to seize new growth opportunities 6
Slide 7: Covid-19 has accelerated long-lasting consumer trends
Covid-19 has accelerated long-lasting consumer trends Reinforced confidence in 2030 strategy 7
Slide 8: Priority 1: Increase value per case
Priority 1 : Increase value per case Keep focus on retail price … but look beyond 8
Slide 9: Priority 2: Enhance portfolio management
Priority 2 : Enhance portfolio management A transformation project • • • ✓ 9
Slide 10: Priority 3: Implement client centric model
Priority 3 : Implement client centric model Louis XIII is our spearhead … and ecom is the game changer 10
Slide 11: Priority 4: Achieve responsible growth
Priority 4: Achieve responsible growth A priority deeply rooted in our genes 11
Slide 12: Priority 4: Achieve responsible growth
Priority 4: Achieve responsible growth An opportunity to accelerate, leveraging a new paradigm 12
Slide 13: Well on track to achieve 2030 financial objectives
Well on track to achieve 2030 financial objectives… 13
Slide 14: Very strong results in 2020/21 despite pandemic
… thanks to very strong results in 2020/21 despite pandemic 14
Slide 15: Business Review
Business Review Eric Vallat, CEO
Slide 16: Strong resilience led by Cognac performance
Strong resilience led by Cognac performance Sharp sales acceleration in H2 16
Slide 17: Strong resilience led by growth in the US and China recovery
Strong resilience led by outstanding growth in the US and China recovery in H2 17
Slide 18: Cognac division
Cognac division Organic change (%) Volume / Price-Mix Organic change (%) Current operating margin Change (pp) +3.7% +9.1% [-5.4% +11.3% 30.1% +2.9pp 18
Slide 19: Solid growth led by the US, China and the UK
Solid growth led by the US, China and the UK o o o 19
Slide 20: 30.1% current operating margin
30.1% current operating margin (+2.0 pts*) 20
Slide 21: Louis XIII: true luxury icon
Louis XIII: true luxury icon Pioneer DtoC model in the industry o o 21
Slide 22: Remy Martin
Remy Martin Leverage momentum and resonate with clients’ cultures 22
Slide 23: Remy Martin
Remy Martin Celebrate Fine Champagne 23
Slide 24: 24
24
Slide 25: Liqueurs & Spirits division
Liqueurs & Spirits division Organic change (%) Volume / Price-Mix Organic change (%) Current operating margin Change (pp) -3.2% -11.3% / +8.1% +2.5% 13.3% -1.0pp
Slide 26: Sales performance impacted by on-trade closure and travel retail
Sales performance impacted by on-trade closure and travel retail o o o 26
Slide 27: Profitability preserved at 13.3% current operating margin
Profitability preserved at 13.3% current operating margin (+0.8pt*) 27
Slide 28: Liqueurs & Spirits: embrace the cocktail culture
Liqueurs & Spirits : embrace the cocktail culture Leverage booming at home mixology to grow awareness 28
Slide 29: Liqueurs & Spirits
Liqueurs & Spirits Establish brands as most thought-provoking Single Malt Whiskies 29
Slide 30: Financial results
Financial results Luca Marotta, CFO
Slide 31: Current Operating Profit
Current Operating Profit Ending March (in €m) 2020-21 2019-20 Reported % Organic % Net Sales 1,010.2 1,024.8 1.4% 1.8% Gross Profit 680.1 676.9 +0.5% 42.9% % of sales 67.3% 66.0% +1.3pp +0.8pp Sales and marketing expenses (341.6) (355.0) 3.8% -0.7% Administrative expenses (102.5) (106.8) -4.1% -5.0%
Slide 32: Current operating margin
Current operating margin a Reported COP/Sales : +2.4pts ns +2.Apts +0.3 pt “0.2 pt +0.8pt -0.9pt —_—_—_ oo 23.4% Organic COP/Sales: +2.3 pts " FY 19/20 Gross A&P Distribution/ Currency Scope FY 20/21 COP/Sales Margin others COP/Sales 32
Slide 33: Net profit
Net profit Ending March (in €m) 2020-21 2019-20 Reported % Organic % Current Operating Profit 236.1 215.1 +9,.7% 412.8% Other operating income (expenses) (0.2) (19.7) - - Operating profit 235.9 195.5 +20.7% +24.8% Net financial income (charge) (14.6) (28.0) - - Pre-tax profit 221.2 167.5 432.1% +34.
Slide 34: Non-recurring items
Non-recurring items Ending March (in €m) 2020-21 2019-20 Net profit - Group share 144.5 113.4 Westland’s goodwill write-off - 18.8 Non-recurring tax items BS (2.5) Net profit from discontinued operations, halted or sold - (6.4) Others 0.2 0.9 Net profit excluding non-recurring items - Group share 14
Slide 35: Net debt / Cash flow
Net debt/ Cash flow Ending March (in €m) 2020/21 2019/20 Change Opening net Financial debt (1 April) (450.9) (343.3) -107.6 Gross operating profit (EBITDA) 272.5 252.4 20.0 WCR of eaux-de-vie and spirits in ageing process (58.7) (118.9) 60.3 Other working capital items 45.8 45.9 -0.1 Capital expendi
Slide 36: Net financial expenses
Net financial expenses Ending March (in €m) 2020/21 2019/20 Gross debt servicing costs (12.0) (12.7) Net currency gains (losses) (0.4) (4.7) Other financial expenses (net) (2.2) (10.6) Net financial income (charges) (14.6) (28.0) 36
Slide 37: Foreign exchange – Hedging impact
Foreign exchange – Hedging impact • • • 37
Slide 38: Balance sheet as of 31 March 2021
Balance sheet as of 31 March 2021 920 941 Gross financial debt 38
Slide 39: ROCE
ROCE 18.6% 19.7% Cognac 16.7% i 13.0% Liqueurs & Spirits 18.2% 18.4% Group Brands 2019/20 2020/21 -21.9% -49.6% 16.5% 17.1% Group 39
Slide 40: Changes in capital employed
Changes in capital employed (M€) +30.1 -1.8 +42.8M€ +3.3% 40
Slide 41: Ordinary dividend at all time highs
Ordinary dividend at all time highs o • • o • 170 +1.00€ ED (*) 150 1.65 1.65 1.65 +1.00€ +1.00€ 1.60 ED (*) ED (*) 1.53 130 1.40 1.30 1.30 1.30 1.30 1.30 1.27 110 1.20 Stock Price (EUR) 1.10 90 1.00 1.00 1.00 70 50 30 10 -10 41
Slide 42: Share Buyback up to 1m shares
Share Buyback up to 1m shares o o o • • • 42
Slide 43: Outlook
Outlook Eric Vallat, CEO
Slide 44: Outlook 2021/22
Outlook 2021/22 Confident in continued share gains in the exceptional spirit market 2021/22 is expected to be a year of two halves with H1 benefitting from: * Favorable bases of comparison * Some restocking effects Being ahead in the unfolding of its 2030 financial objectives and given the favourabl
Slide 45: 2030 objectives confirmed
2030 objectives confirmed 45
Slide 46: Q&A
Remy Cointreau Sa Ord — FY2020/21 Earnings Presentation on 6ix