Davide Campari-Milano N.V. · MIL:CPR
Davide Campari-Milano — Debt Investor Presentation (September 2020)
29 slides from Davide Campari-Milano's debt investor presentation, Sep 28, 2020
Slide 1: Investor Presentation
INVESTOR PRESENTATION September 28th, 2020
Slide 2: Disclaimer
DISCLAIMER IMPORTANT NOTICE By accessing or reading the presentation slides, you agree to be bound by the following limitations and to maintain confidentiality regarding the information disclosed in this presentation. This presentation has been prepared by Davide Campari-Milano N.V., is the sole res
Slide 3: Presenters
PRESENTERS Bob Kunze-Concewitz - CEO Graduated from Hamilton College (USA) and obtained MBA from Manchester Business School Joined Campari Group as Group Marketing Director in 2005 Appointed as Group Chief Executive Officer in 2007 Paolo Marchesini - CFO Graduated from Bocconi University in Milan an
Slide 4: Presentation Outline
PRESENTATION OUTLINE Group Overview o Financial Structure o Financial Update as of 30 June 2020 o Envisaged Transaction o Q&A
Slide 5: Campari Group key facts
160 €1.8 bn Years of history 50+ Group Net Sales in 2019 and heritage Premium and super premium brands 190 22 4.000 Countries and 21 in- Production facilities (including Employees across market companies distilleries and bottling plants) the world
Slide 6: Well Balanced Cocktail for Future Growth
WELL BALANCED COCKTAIL FOR FUTURE GROWTH Portfolio of 50+ premium brands, across the major spirits categories, leveraging the key trends in the premium spirits industry World Class Brand Portfolio Strong focus on six Global priority brands and selected high potential Regional and Local priority bran
Slide 7: A Long History of Tradition and Expansion
A LONG HISTORY OF TRADITION AND EXPANSION Campari brands were distributed in more than 80 countries 2009 Business Infrastructure Strenghtening 1860 1960s 1995 2001 Long History of Growth Through M&A 2020 Gaspare Campari Acquisition activity invented the bright of Campari Group red bitter - sweet beg
Slide 8: Track Record of Well Balanced and Profitable Growth
TRACK RECORD OF WELL BALANCED AND PROFITABLE GROWTH Net sales (Eur mln) 2000-2019 and % organic growth Key Highlights 2,000 1,842.5 0.6 Net sales and EBITDA (1) increased 4 1,726.5 1,753.4 1,800 1,656.8 1,711.7 0.5 times since 2000 1,600 1,400 0.4 Sustained organic growth consistently 1,200 1,000 0.
Slide 9: Net Sales by Regions and Key Markets in 2019
NET SALES BY REGIONS AND KEY MARKETS IN 2019 Group Net Sales Breakdown By Region Others 2.2% Australia 4.8% US Is the Group’s largest market Americas: Others 6.5% 44.6% of total UK 2.5% USA 26.9% Organic growth: +5.8% Russia 3.0% SEMEA: Germany 9.4% 27.1% of total Organic growth: +5.3% Others 3.3% J
Slide 10: Net Sales by Brand in 2019
NET SALES BY BRAND IN 2019 Group Net Sales Breakdown By Brand Rest of Portfolio Global Priorities: 14.8% Aperol 18.3% 56.9% of total Organic change: +7.3% Local Priorities 11.5% Campari 10.0% Regional Priorities: 16.8% of total Organic change: +4.3% SKYY 7.8% Regional Priorities 16.8% Wild Turkey 7.
Slide 11: Strengthened Business Infrastructure
STRENGHTENED BUSINESS INFRASTRUCTURE 1. Enhanced distribution capabilities Direct markets from 5 to 21 in 2004 - 2020, accounting for 91.6% of Group’s net sales in FY 2019 2. Expanded production capabilities Facilities (plants and distilleries) from 8 to 22 in 2004 – 2020 3. Strengthened supporting
Slide 12: A Consistent Growth Strategy
A CONSISTENT GROWTH STRATEGY Campari Group’s growth strategy aims to combine organic growth through strong brand building with shareholder value enhancing acquisitions. Spirits are the Company’s core business and where it focuses its acquisition efforts. The group’s strategic thinking is driven by t
Slide 13: Track Record of Acquisitions Supported by Cash Generative Business
TRACK RECORD OF ACQUISITIONS SUPPORTED BY CASH GENERATIVE BUSINESS Campari Group focuses its external growth efforts on spirits and the strategic thinking is driven by the desire to reach or enhance critical mass in key geographic markets. €3.0 12
Slide 14: Well Positioned to Leverage Favorable Industry Trends
WELL POSITIONED TO LEVERAGE FAVORABLE INDUSTRY TRENDS Key Industry Trends Campari Portfolio • Continued premiumization across developed and emerging markets • Classic cocktail revival & mixology • Brown spirits remain in vogue, offering ageing differentiation innovation opportunities • Aperitifs & b
Slide 15: Committed Core Shareholder Base and Enhanced Voting System
COMMITTED CORE SHAREHOLDER BASE AND ENHANCED VOTING SYSTEM Shareholding structure and major shareholders as of 15 September 2020 Ordinary (1) % of ordinary shares Special Voting Shares A(2) Ordinary Shares + SVS A % of ordinary shares + SVS A shares Lagfin 624,660,274 53.8% 592,416,000 1,217,076,274
Slide 16: Presentation Outline
PRESENTATION OUTLINE • Group Overview Financial Structure o Financial Update as of 30 June 2020 o Envisaged Transaction o Q&A
Slide 17: A Cocktail of Financial Strengths
A COCKTAIL OF FINANCIAL STRENGHTS • Strong and covenant free financial position • Long lasting relationship with capital markets oCash rich and cash generative business model o Track record of M&A with conservative debt structure 16
Slide 18: Strong and Covenant Free Financial Position
STRONG AND COVENANT FREE FINANCIAL POSITION Net Financial Debt as of 30 June 2020 Gross Debt - Eurobonds & Term Loan Δ 30 June 2020 vs. O/S Amount Eur million 30 June 2020 31 December 2019 Term Loan Type Coupon 31 December 2019 (Eur million) 21% Unrated Eurobond 2.75% 580.9 Short-term cash/(debt) (A
Slide 19: Long Lasting Relationship with Debt Capital Markets
LONG LASTING RELATIONSHIP WITH DEBT CAPITAL MARKETS Overall debt (USPP & Eurobond) raised in the debt capital market: approximately Eur 2.4 billion In April 2020, Campari entered into a term debt facility agreement with a pool of banks for an amount up to Eur 750 million 2001 2002 2003 2009 2012 201
Slide 20: Cash Rich and Cash Generative Business Model
CASH RICH AND CASH GENERATIVE BUSINESS MODEL Net debt/EBITDA adj. ratio – progressive deleverage Strong and Constant Cash Conversion 1400 3.5 0.70 3.0 Average 2015-2019 Free Cash Flow* /EBITDA Adj 55% Free Cash Flow/EBITDA Adj. (%) 1200 3.0 0.65 Net Debt/EBITDA (x) 1000 2.2 2.2 2.5 60% Net Debt (Eur
Slide 21: Track Record of M&A with Conservative Debt Capital Structure
TRACK RECORD OF M&A WITH CONSERVATIVE DEBT CAPITAL STRUCTURE Champagne Net debt / EBITDA ratio* historically ranging between 1.1x to 3.3x Lallier (80%) since 2002 (2.4x as of 30 June 2020) The Jamaica Rums June 2020 Grand Marnier Eur 48.3 mln Proven ability to integrate acquisitions and de-leverage
Slide 22: Presentation Outline
PRESENTATION OUTLINE • Group Overview • Financial Structure Financial Update as of 30 June 2020 o Envisaged Transaction o Q&A
Slide 23: 2020 Half Year Results - Key Highlights
2020 HALF YEAR RESULTS - KEY HIGHLIGHTS Net Sales H1 2020 Change vs. H1 2019 The full effect of the COVID-19 pandemic and the subsequent restrictive measures Key figures € million % on sales Reported Organic across key markets were registered during the Q2 period after the initial effects in Q1 lead
Slide 24: Strong Brand Momentum in the US and Across Core Aperitif Portfolio
STRONG BRAND MOMENTUM IN THE US AND ACROSS CORE APERITIF PORTFOLIO Campari Group’s outperformance vs. US Spirits Market – Mar-Jul 2020 (1) Campari Group’s outperformance in US by key brand – Mar-Jul 2020(1) 100% 25.0% 240% 80% 20.0% 200% % volume change % volume change 160% 60% 15.0% 120% 40% 10.0%
Slide 25: Presentation Outline
PRESENTATION OUTLINE • Group Overview • Financial Structure o Financial Update as of 30 June 2020 Envisaged Transaction o Q&A
Slide 26: Eurobond 2020 - Envisaged Transaction
EUROBOND 2020 - ENVISAGED TRANSACTION Issuer Davide Campari-Milano N.V. Issuer/Issue Rating Not rated Format/Type of Offering Senior, Unsecured Notes/Reg-S, Bearer Currency/Issue Size Eur 500mln expected Tenor 7 years Interest payments Fixed rate, Annual Early repayment options Change of Control Put
Slide 27: Presentation Outline
PRESENTATION OUTLINE • Group Overview • Financial Structure o Financial Update as of 30 June 2020 o Envisaged Transaction Q&A
Slide 28: Campari Group
CAMPARI GROUP Campari Group has a portfolio of OVER 50 PREMIUM AND SUPER PREMIUM BRANDS GIN COGNAC WHISKY VODKS APERITIF LIQUEUR & OTHER SPARKLING WINE RYM TEQUILA & MEZCAL T — TOASTING LIFE TOGETHER
Slide 29: Contacts
w w w. c a m p a r i g r o u p . c o m / e n CONTACTS C A M PAR I O F F I C I A L @ G R U P P O C A M PAR I C A M PA R I G R O U P i n v e s t o r. r e l a t i o n s @ c a m p a r i . c o m
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