Britvic — Retail Conference September 2009
29 slides from Britvic's conference presentation, September 2009
Slide 1: Britvic plc
\o BRITVIC ple Dedicated to creating and building soft-drink brands that delight consumers...always!
Slide 2: The Investment Case
The Investment Case Britvic is a leading branded soft drinks business in the UK and Ireland STRONG MARKET POSITIONS A POWERFUL AND RESILIENT BRAND PORTFOLIO #1 in UK stills #1 or #2 brands in the key categories #1 in UK Licensed On-Premise (with the #1 cola) Barriers to entry for entrants looking to
Slide 3: A Clear Strategy for Growth
A Clear Strategy for Growth The Preferred Brands for Consumers Drive Availability where products not sold Grow through Innovation Grow Prices Optimising Efficiency and Cash Generation Expand in Europe SHAREHOLDER RETURN 3
Slide 4: Competitive Differentiation
Competitive Differentiation 4
Slide 5: GB Market Volumes And Growth
GB Market Volumes And Growth 1.8% 5.6% 3.6% -7.5% -2.1% -3.8% -6.6% Carbs -8.6% -7.6% 2.3% 3.5% 3.4% 10.2% -6.6% -1.8% 0.7% -4.6% -2.5% -6.0% -6.5% -6.4% -6.4% -4.3% -7.6% -5.3% 0.5% -1.2% Stills -6.2% -14.1% 5.7% -0.3% 2.5% 3.0% -3.8% -3.8% Diet/Low Cal -37.8% -26.6% Regular / Full Sugar Volume (‘0
Slide 6: Strong And Growing Market Positions
Strong And Growing Market Positions Stills (£3.3bn) Carbonates (£2.7bn) Take-Home (£6.0bn) Stills (£0.8bn) Carbonates (£1.5bn) Licensed On-Trade (£2.3bn) Consistent Share Gains Across Channels And Categories Source: AC Nielsen Scantrack data to 13 June2009 & Licensed On Trade data to May 2009 Total
Slide 7: Core GB brands
Core GB brands z #1 stills brand in the take-home market (1) z # 1 cola in Licensed on-trade (2) z 10th largest UK grocery brand by value (4) z # 2 branded cola in take-home (1) z # 2 global soft drinks brand (3) z # 1 ready-to-drink kids’ stills brand (1) z #1 packaged drink in On-Premise (2) z Now
Slide 8: Seed GB brands
Seed GB brands z World’s number one sports drink z Ambition to be the #2 GB sports drink by summer 2011 z Rapid growth within Plain Water in 1st year z Juicy drench added in 2009, outselling rivals z Acquired by PepsiCo in 2008 z A small category that Britvic can build z Genuine cola innovation z In
Slide 9: Irish Soft Drinks Market Volume
Irish Soft Drinks Market Volume 000's Litres 2007/08 2008/09 Macro Conditions Continue To Impact The Soft Drinks Category Source: Total Scantrack ROI (grocery multiples and forecourts) 9
Slide 10: Britvic Ireland - In Shape For Growth
Britvic Ireland - In Shape For Growth Faster, Simpler, The number 1 water The number 1 orange Winning z “Bodies never lie” TV carbonate z Investing in our campaign z New TV campaign production facilities z New packs and z Delivering its message z SAP implementation flavours through humour underway z
Slide 11: Latest Financial Headlines
Latest Financial Headlines (% changes against last year) Q3 Year to Date Volume GB Carbs 10.4 8.5 GB Stills 3.0 4.9 International 11.7 3.6 Ireland (20.2) (9.6) GROUP 3.9 4.7 ARP GB Carbs 3.6 3.0 GB Stills 5.2 0.7 International 5.3 10.6 Ireland (€) (5.5) (5.8) GROUP (£) 3.3 2.5 Revenue GB Carbs 14.4
Slide 12: Consistent Delivery Of Key Metrics
Consistent Delivery Of Key Metrics 1% GR1 6% C A A GR C GB/INTL REVENUE £m GB/INTL EBIT £m 6% R1 5m C A G £24 EPS (p) FREE CASH FLOW £m Repeated Leverage Through The P&L 2009E based on market consensus forecasts in September 2009 12
Slide 13: Summary
Summary Britvic is a Leading Branded Soft Drinks Business in the UK and Ireland z Strong and Growing Market Positions z A Powerful and Resilient Brand Portfolio z An Ever-Expanding Relationship with PepsiCo z Consistently Deliver on Key Metrics Long-Term Attractive Growth Through Recession And Recov
Slide 14: Britvic plc
\o BRITVIC ple Dedicated to creating and building soft-drink brands that delight consumers...always!
Slide 15: Supplementary Information
ple Supplementary Information BRITVIC
Slide 16: Balance Sheet Strength in 2009
Balance Sheet Strength in 2009 z £283M bank facility in place z US private placement debt of £229M Forward start facility agreed April 2009 Fully hedged and swapped into sterling in February 5 out of 6 banks retained 2007 Abbey Santander joins All-in swapped fixed our banking group coupon
Slide 17: 2009 Brand Investment
2009 Brand Investment Heavyweight TV 2 major campaigns Wimbledon On TV for the first campaign z Twenty20 Cricket z An on-pack to win time z Back on TV across the tickets to the z Olympic gold z Tie-in with Nokia summer championships medallist Tim Brabant z Major on-pack signed as a brand z New packs
Slide 18: 2009 Innovation & Product Launches
2009 Innovation & Product Launches H1 H2 Great Innovation Delivery Through The Year 18
Slide 19: Flawlessly-Executed Brand Equity Programmes…
Flawlessly-Executed Brand Equity Programmes… 19
Slide 20: …Coupled With Successful In-Store Execution
…Coupled With Successful In-Store Execution 20
Slide 21: GB Soft Drinks Market Volume
GB Soft Drinks Market Volume 200,000 2006/07 2007/08 190,000 2008/09 180,000 Volume Thousand Litres 170,000 160,000 150,000 140,000 130,000 120,000 110,000 100,000 08 08 08 08 08 09 09 09 09 09 09 09 09 09 09 09 09 09 0. 0. 1. 2. 2. 1. 2. 7. 2. 3. 4. 5. 5. 6. 7. 8. 9. 9. .1 .1 .1 .1 .1 .0 .0 .0 .0 .
Slide 22: Half-Year Headlines
Half-Year Headlines H109 H108 % £’m £’m change Revenue 483.2 454.7 6.3 EBIT 31.9 31.4 1.6 EBIT Margin 6.6% 6.9% (30)bps Profit After Tax 14.8 13.0 13.8 Free Cashflow (24.6) (10.5) (134.3) Adjusted Net Debt (442.7) (454.1) 2.5 Basic Earnings Per Share 6.9p 6.1p 13.1 Interim Dividend Per Share 4.1p 3.
Slide 23: Half-Year Cashflow
Half-Year Cashflow H109 H108 % £m £m change Operating profit pre-exceptionals 31.9 31.4 1.6 Depreciation & amortisation 21.6 23.8 (9.2) EBITDA 53.5 55.2 (3.1) Working capital (23.9) (31.4) 23.9 Capital expenditure (26.5) (12.1) (119.0) Pension contribution (10.0) (10.0) 0.0 Other (17.7) (12.2) (45.1
Slide 24: The GB Carbonates Market
The GB Carbonates Market Sub-sectors include cola, flavoured carbonates, lemonade, mixers and glucose/stimulant drinks Over 60% channelled though Take-Home Take home 62% Licensed On-Premise 38% market Take-Home market dominated by CCE (53%) Britvic #2 (12.5%) GSK #3 (8%) – Lucozade GB’s le
Slide 25: The Stills Market in GB
The Stills Market in GB Sub-sectors include squash, water, fruit drinks, pure juice and sports drinks Number 1 in stills in UK Over 80% channelled through Take-Home market Take-Home market fragmented Britvic #1 (10.7%) Take home Licensed On-Premise 18% Danone #2 (9.5%) – (Evian, Volvic, Badoit 8
Slide 26: Channels to Market in GB
Channels to Market in GB 3 main channels to market: Take Home (£6.1bn) (1) Customers include large grocery retailers, (primarily Tesco, J Sainsbury, Asda, Wm Morrison), high street stores (for example, WHSmith), ‘‘impulse’’ channel retailers (convenience stores, garage forecourt sales and off-lice
Slide 27: The GB Take-Home Market
The GB Take-Home Market Take-Home by Retail Value Sales (£6.1 billion) 07-09 YOY CAGR Stills (2.4)% (4.6)% Pure Juice 0.6 % (4.0)% Juice Drinks (1.1)% (2.2)% Plain Water (8.7)% (10.5)% Squash (1.6)% 3.6 % Dairy (0.6)% 1.6 % Smoothies (10.2)% (30.0)% Water Plus (8.4)% (7.6)% Sports Drinks 9.1 % 1.0 %
Slide 28: The GB Licensed On-Premise Market
The GB Licensed On-Premise Market Licensed On-Trade by Retail Value Sales (£2.3 billion) 07-09 YOY CAGR Stills (2.2)% (2.0)% Pure Juice / (2.0)% (1.2)% Fruit Drinks Mixers (2.3)% (2.7)% Squash (1.1)% (0.7)% Water (7.4)% (6.4)% Carbonates (3.1)% (2.8)% Cola (2.0)% (1.6)% Lemonade (3.7)% (4.1)% Flavou
Slide 29: Guidance for 2009 At The Half Year
Guidance for 2009 At The Half Year Additional revenue: Total innovation this year to add ~1% to the GB top line Costs: Raw materials inflation guidance remains unchanged at 4.0-4.5% Interest similar to 2008. 2009 sees lower LIBOR but higher pricing Tax rate similar to H1 Savings: Strategic