Davide Campari-Milano N.V. · MIL:CPR
Davide Campari-Milano — Q1 2009 Earnings Presentation
26 slides from Davide Campari-Milano's earnings presentation, May 13, 2009
Slide 1: 2009 First Quarter Results
2009 First Quarter Results Conference call 13 May 2009 First quarter results to 31 March 2009 - 1
Slide 2: Results highlights and sales review
Results highlights g g and sales review Bob Kunze-Concewitz, CEO First quarter results to 31 March 2009 - 2
Slide 3: First Quarter ended 31 March 2009 - Highlights
First Quarter ended 31 March 2009 - Highlights g g Q1 2009 % change % change % change € million at actual forex at constant forex organic growth Net sales 190.1 -0.4% -2.5% -4.2% Contribution after A&P 79.9 4.2% 1.3% 0.5% EBITDA before one-off's 48.2 1.9% -1.7% -1.7% EBITDA 47.7 -5.0% -8.4% EBIT bef
Slide 4: Spirits segment key market trends
Spirits p segment g key y market trends Consumption Shipments (like-for-like (like-for-like change in change in value): value) AC Nielsen data (YTD* Mar09 vs (YTD* Mar09 vs previous year) previous year) ITALY Spirits' market performance -2.6% Gruppo Campari Spirits 0 7% 0.7% 8 1% 8.1% USA Spirits' m
Slide 5: 2009 First quarter net sales - Growth drivers
2009 First q quarter net sales - Growth drivers €190.9 m € 3.3 m € (8.0) m € 3.9 m € 190.1m +1.7% -4.2% +2.1% (*) Breakdown of change in perimeter €m -0.4% Acquisitions (1) 0.6 A Agency b d nett (2) brands, 27 2.7 Total external growth 3.3 (1) Destiladora San Nicolas (Tequila Espolon) (2) New agency
Slide 6: Net sales analysis by region
Net sales analysis y byy region g Italy € 99.2 m -0.5% +2.0% +0.0% € 100.7 m > Positive results in very tough environment driven by strong performances of Campari, Aperol and CampariSoda, +1.5% b benefitting fitti from f continuing ti i growth th off aperitivo iti culture lt Q1 2008 External Organic
Slide 7: Net sales analysis by region
Net sales analysis y byy region g Americas > Negative organic growth driven by destocking: € 44.3 m +7.5% -18.4% +8.6% € 43.3 m - in US (-12.7%) destocking throughout the entire portfolio, although SKYY continues to show positive shipments driven by double digit consumption pattern - in Brazil, stro
Slide 8: Net sales analysis by segment
Net sales analysis y byy segment g Spirits Wines € 129.1 m +2.3% -1.7% +3.2% € 133.9 m € 26.5 m +1.2% 1.2% -10.5% -0.1% 0.1% € 24.0 m +3.8% -9.4% Q1 2008 External Organic Forex Q1 2009 Q1 2008 External Organic Forex Q1 2009 > Negative organic sales growth, driven by weak results of third party > Neg
Slide 9: Net sales breakdown
Net sales breakdown Q1 2009 consolidated net sales : € 190.1 m Breakdown by region Breakdown by segment RoW and Duty Free 4.8% (4.3% in Q1 2008) Other Soft Drinks 1.3% (1.9% in Q1 2008) Americas (1) 15.6% 22 8% 22.8% (16 6% in Q1 2008) (16.6% (23.2% in Q1 2008) Italy Spirits (1) Include: 53.0% Wines
Slide 10: Review of main brands
Review of main brands % change in sales value Q1 2009 / Q1 2008 Spirits at constant FX at actual FX Campari -3.5% -3.3% > Good performance in Italy, key European markets and Japan, offset by destocking in Brazil SKYY 8.2% 21.6% > Strong result, notwithstanding destocking activities, driven by contin
Slide 11: Review of main brands (cont'd)
Review of main brands (cont’d) ( ) % change in sales value Q1 2009 / Q1 2008 Wines at constant FX at actual FX Cinzano -1.4% -1.3% > Soft performance in a small quarter led by weak Italian market in addition to tough comps, sparkling wines although consumption trend continues to be positive Cinzano
Slide 12: Q1 2009 consolidated results
Q1 2009 consolidated results Paolo Marchesini, CFO First quarter results to 31 March 2009 - 12
Slide 13: Consolidated CAAP
Consolidated CAAP Organic (€ million) Q1 2009 Q1 2008 Total change Perimeter FX growth Net sales 190 1 190.1 100.0% 100 0% 190 9 190.9 100.0% 100 0% -0.4% -0 4% 1 7% 1.7% -4 2% -4.2% 2 1% 2.1% (2) COGS (85.6) -45.1% (86.7) -45.4% -1.2% Gross margin after distribution costs 104.5 54.9% 104.3 54.6% 0.
Slide 14: Consolidated EBIT
Consolidated EBIT Organic (€ million) Q1 2009 Q1 2008 Total change Perimeter FX growth Contribution after A&P 79.9 42.0% 76.7 40.2% 4.2% 0.8% +0.5% 2.9% SG&A (1) (36.8) (36 8) -19.4% 19 4% (34.6) (34 6) -18.1% 18 1% 6 5% 6.5% EBIT before one-off's 43.1 22.7% 42.1 22.1% 2.3% -0.2% -1.7% 4.1% One-off'
Slide 15: Consolidated Group's pretax profit
Consolidated Group’s p p pretax p profit (€ million) Q1 2009 Q1 2008 Total Change Operating profit = EBIT 42.6 22.4% 45.0 23.6% -5.4% Net financial income (expenses) (3.9) -2.0% (4.5) -2.3% -13.5% Income from associates (0.3) -0.1% 0.1 0.0% Pretax profit 38.5 20.3% 40.6 21.3% -5.3% Minority interest
Slide 16: Analysis of net debt
Analysis y of net debt € million 31 March 2009 31 December 2008 Cash and cash equivalents 183.6 172.6 Payables to banks (87.1) (107.5) Real estate lease payables (3.4)) (3 (3.4)) (3 Private placement and bond issues (9.3) (8.9) Other assets or liabilities (4.1) (7.4) Total short-term cash/(debt) 79.
Slide 17: Net Working Capital
Net Working g Capital p (€ million) 31 Mar 2009 31 Dec 2008 Change 31 Mar 2008 Trade receivables 201.5 272.1 (70.6) 202.9 Inventories 180 5 180.5 165 7 165.7 14 8 14.8 172 8 172.8 Trade payables (126.3) (152.1) 25.8 (138.9) Net Working Capital 255.7 285.7 (30.0) 236.7 Last 12 months sales 941.3 942.
Slide 18: Update on business initiatives
Update p on business initiatives Bob Kunze-Concewitz, CEO First quarter results to 31 March 2009 - 18
Slide 19: Update on business initiatives
Update p on business initiatives > Licor 43 > Launch of SKYY Infusions Pineapple > Take control of Belgium J/V > Update on Wild Turkey First quarter results to 31 March 2009 - 19
Slide 20: Outlook
Outlook Bob Kunze-Concewitz, CEO First quarter results to 31 March 2009 - 20
Slide 21: Outlook
Outlook > Q1 2009 results were satisfactory overall, given the tough economic environment > G i fforward, Going d we expectt to t benefit b fit from: f - sustained consumption trend behind key brands and markets - tail end of destocking activities - overall positive input costs and FX outlook > Notw
Slide 22: Supplementary schedules
Supplementary schedules Schedule - 1 Analysis of Q1 2009 net sales growth by segment and region Schedule - 2 Q1 2009 consolidated income statement Schedule - 3 Average exchange rates in Q1 2009 First quarter results to 31 March 2009 - 22
Slide 23: Analysis of Q1 2009 net sales growth by segment and region
Supplementary schedule - 1 Analysis of Q1 2009 net sales growth by segment and region Consolidated net sales by segment Q1 2009 Q1 2008 Change of which: € m % € m % % externall organic i currency Spirits 133.9 70.5% 129.1 67.6% 3.8% 2.3% -1.7% 3.2% Wines 24.0 12.6% 26.5 13.9% -9.4% 1.2% -10.5% -0.1%
Slide 24: Q1 2009 consolidated income statement
Supplementary schedule - 2 Q1 2009 consolidated income statement Q1 2009 Q1 2008 Change € m % € m % % Net sales (1) 190.1 100.0% 190.9 100.0% -0.4% (2) (85.6) -45.1% (86.7) -45.4% -1.2% COGS Gross margin after distribution costs 104.5 54.9% 104.3 54.6% 0.2% Advertising and promotion (24.6) -12.9% (2
Slide 25: Average exchange rates in Q1 2009
Supplementary schedule - 3 Average exchange rates in Q1 2009 Q1 2009 Q1 2008 % change US dollar : 1 Euro 1.302 1.500 Euro : 1 US dollar 0.7678 0.6667 15.2% Brazilian Real : 1 Euro 3.016 2.602 Euro : 1 Brazilian Real 0.3316 0.3843 -13.7% First quarter results to 31 March 2009 - 25
Slide 26: WWW.CAMPARIGROUP.COM
For additional information: Investor Relations - Gruppo Campari Phone: +39 02 6225 330; Fax: +39 02 6225 479 E-mail: investor.relations@campari.com; Website:http://investors.camparigroup.com/ WWW.CAMPARIGROUP.COM First quarter results to 31 March 2009 - 26
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