Davide Campari-Milano N.V. · MIL:CPR
Davide Campari-Milano — H1 2022 Earnings Presentation
41 slides from Davide Campari-Milano's earnings presentation, Jul 27, 2022
Slide 1: Results Presentation First Half ended 30 June 2022
Results Presentation First Half ended 30 June 2022 July 27, 2022
Slide 2: Strong double-digit organic growth across all indicators continued in Q2
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Strong double-digit organic growth across all indicators continued in Q2, despite the tough comparison base, thanks to very healthy aperitifs momentum driving positive mix +19.2% Organic Sales Org change
Slide 3: Strong growth across all regions and brand clusters
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Strong growth across all regions and brand clusters, particularly the aperitifs in the European markets, thanks to sustained consumption in on-premise, boosted also by good weather By Region H1 2022 Net s
Slide 4: Americas +12.9% SEMEA +28.1%
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Net sales organic performance by market > USA +7.1% • Continued growth across core brands with an acceleration in Q2 (+7.5%) despite the tough comparison base (Q2 2021 +42.6%), largely thanks to strength
Slide 5: NCEE +24.8% APAC +7.8%
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Net sales organic performance by market > GERMANY +34.8% • Strong performance in H1, with continued outperformance in Q2 (+31.3%) thanks to resilient home consumption combined with a buoyant on-premise an
Slide 6: Global Priorities: organic growth of +22.2%
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Global Priorities: organic growth of +22.2% NCEE +23.0% 37.3% > Aperol: strong growth driven by core Italy (+35.4%), Germany (+54.7%), France (+39.6%), Spain (+206.8%) and the US (+20.7%), as well as all
Slide 7: Regional Priorities: organic growth of +22.6%
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Regional Priorities: organic growth of +22.6% > Espolòn: continued growth, boosted also by pricing effects, despite the tough 20.3% comparison base (Q2 2021: +51.9%), driven by the core US (+20.1%) as wel
Slide 8: Local Priorities: organic growth of +6.9%
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Local Priorities: organic growth of +6.9% 7.2% > Campari Soda: positive performance driven by core Italy 1.8% > Wild Turkey RTD: overall positive performance despite a temporary decline in Q2 due to ocean
Slide 9: Financial Review
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Slide 10: EBIT margin expansion of +170 bps organically
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex EBIT margin expansion of +170 bps organically thanks to strong topline driving operating leverage Reported Organic Organic Change Q2 2022 H1 2022 H1 2021 Change Change € million % % € million % Net Sales
Slide 11: Double-digit EBIT organic growth across regions
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Double-digit EBIT (1) organic growth across regions Margin growth drivers H1 2022 EBIT REGIONAL SPLIT (%) vs. H1 2021 Net Sales EBIT margin Gross margin EBIT organic A&P organic SG&A organic Change organi
Slide 12: Profit before tax
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Profit before tax H1 2022 H1 2021 Reported €million % of sales €million % of sales change % EBIT adjusted 310.9 24.7% 223.2 22.3% 39.3% Operating adjustments (22.1) (6.1) - Financial income/(expenses) bre
Slide 13: Group net profit adjusted
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Group net profit adjusted Change H1 2022 vs H1 H1 2022 H1 2021 2021 €million Reported Adjustments Adjusted Reported Adjustments Adjusted Reported Adjusted Profit before tax 282.3 (22.1) 304.3 214.4 1.4 21
Slide 14: Free cash flow generation
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Free cash flow generation H1 2022 H1 2021 Δ H1 2022 vs H1 2021 Δ H1 2022 vs H1 2021 Total Recurring Total Recurring Total Recurring € million € million € million € million € million % € million % EBITDA 3
Slide 15: Increase in Operating Working Capital in peak season
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Increase in Operating Working Capital in peak season 35.3 108.9 0.5 € million 641.5 786.3 OWC at 31/12/2021 Organic Perimeter Forex OWC at 30/06/2022 % on LTM net sales 29.5% 32.4% > OWC increase of €144.
Slide 16: Modest increase in leverage
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Modest increase in leverage Net Debt/ 1.6x 1.7x EBITDA adj. (x) 40.2 (67.6) (69.6) (124.1) 47.0 1,005.1 € million 830.9 Total: €(174.1) million Net debt at 31/12/2021 FCF Dividend Net (purchase)/sale of A
Slide 17: Marketing initiatives & Business Development
Marketing initiatives & Business Development 17
Slide 18: Campari: Red Passion at Cannes Film Festival
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Campari: Red Passion at Cannes Film Festival Campari was the official partner of the world-renowned Festival de Cannes, this year’s 75th edition, running from the 17th to the 28th of May 2022. A special C
Slide 19: Aperol: Covent Garden Takeover
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Aperol: Covent Garden Takeover Aperol reimagined a stunning Italian square in the heart of Covent Garden in London with Piazza Aperol, a modern twist on the perfect location for an impromptu Aperol Spritz
Slide 20: Aperol: Orange wave 2022
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Aperol: Orange wave 2022 Piazza Aperol activations also in Bournemouth Beach, Hyde Park, Extrema Outdoor Festival sponsorship as well as countless Manchester, the Isle of White & Birmingham this summer! a
Slide 21: Aperol: Duty Free & Airport Takeover
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Aperol: Duty Free & Airport Takeover Summer 2022 marks the return of leisure travel after the pandemic, with huge pent-up consumer demand. Aperol aims to reach more than 30 million leisure travelers throu
Slide 22: Wild Turkey Longbranch: Wonder What If
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Wild Turkey Longbranch: Wonder What If Launch of the second iteration of ‘Wonder What If’, a global creative campaign conceptualized and starring Matthew McConaughey. Directed by celebrated photographer M
Slide 23: SKYY: Californian Vodka - engagement, recruitment and trial
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex SKYY: Californian Vodka - engagement, recruitment and trial Born for the Summer activations: launch of two festivals in CA with NYC Pride: continued supporter of Pride China: continued activations across
Slide 24: Business Developments: acquisitions of Picon apéritif & Del Professore
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Business Developments: acquisitions of Picon apéritif & Del Professore In May 2022, Campari Group acquired Picon, a traditional, market-leading French bittersweet In July 2022 Campari Group completed the
Slide 25: Conclusion & Outlook
Table of contents Results Summary Sales Results ‒ By region ‒ By brand Conclusion Consolidated P&L & Outlook Cash Flow & Net Financial Debt Sustainability Update Conclusion and Outlook Annex 25
Slide 26: Conclusion & Outlook
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Conclusion & Outlook > Very strong performance in the first half, particularly high-margin aperitifs in European markets, thanks to underlying momentum and strong on-premise recovery, boosted also by favo
Slide 27: Annex
Annex
Slide 28: Net sales by brand cluster and region
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Net sales by brand cluster and region H1 2022 H1 2021 Change % of which: Q2 2022 €m % €m % total organic perimeter forex Organic Global Priorities 753.0 59.9% 583.1 58.3% 29.1% 22.2% 0.0% 6.9% 16.9% Regio
Slide 29: Net sales by key market
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Net sales by key market H1 2022 H1 2021 Change of which: Q2 2022 % Group % Group % organic €m €m % organic perimeter forex sales sales growth Americas 556.3 44.3% 438.9 43.9% 26.7% 12.9% -0.1% 14.0% 11.3%
Slide 30: EBIT adjusted by region
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex EBIT adjusted by region Americas North, Central & Eastern Europe Reported Organic Reported Organic H1 2022 H1 2021 Perimeter FX H1 2022 H1 2021 Perimeter FX change change change change € million % of sale
Slide 31: H1 2022 Consolidated P&L
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex H1 2022 Consolidated P&L Reported Perimeter Forex H1 2022 H1 2021 Organic change change effect impact € million % of sales € million % of sales % (bps) (3) % % % Net sales 1,256.9 100.0% 1,000.8 100.0% 25
Slide 32: Q2 2022 Consolidated income statement
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Q2 2022 Consolidated income statement Reported Perimeter Forex Q2 2022 Q2 2021 Organic change change effect impact € million % of sales € million % of sales % (bps) (3) % % % Net sales 722.1 100.0% 602.9
Slide 33: Reclassified balance sheet
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Reclassified balance sheet Invested capital and resources € million 30 June 2022 31 December 2021 Change Fixed assets 3,388.8 3,090.6 298.1 Other non-current assets and (liabilities) (376.3) (365.3) (11.0
Slide 34: Consolidated balance sheet (1 of 2)
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Consolidated balance sheet (1 of 2) Assets 30 June 2022 31 December 2021 Change € million € million € million ASSETS Non-current assets Property, plant and equipment 618.2 560.3 57.9 Right of use assets 7
Slide 35: Consolidated balance sheet (2 of 2)
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Consolidated balance sheet (2 of 2) Liabilities and shareholders’ equity 30 June 2022 31 December 2021 Change € million € million € million LIABILITIES AND SHAREHOLDERS’ EQUITY Shareholders’ equity Issued
Slide 36: Reclassified Cash flow statement
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Reclassified Cash flow statement H1 2022 H1 2021 Change € million € million € million EBITDA 330.9 255.7 75.3 Effects from hyperinflation accounting standard adoption 3.5 1.8 1.7 Accruals and other change
Slide 37: Operating working capital
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Operating working capital Reported Organic Perimeter Forex 30 June 2022 31 December 2021 30 June 2021 change change effect impact € million % sales € million % sales €million € million % sales Trade recei
Slide 38: Financial debt details
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Financial debt details Eurobonds and Term loan composition as of 30 June 2022 Outstanding Original As % of Issue date Maturity Type Currency Coupon Amount tenor total (€ million) Apr 5, 2017 Apr-24 Unrate
Slide 39: Exchange rates effects
Results Summary Sales Results Financial Review Marketing Initiatives Conclusion & Outlook Annex Exchange rates effects Average exchange rate Period end exchange rate change H1 2022 vs H1 change 30 June 2022 H1 2022 H1 2021 30 June 2022 31 December 2021 2021 vs 31 December 2021 : 1 Euro : 1 Euro % :
Slide 40: Disclaimer
Disclaimer This document contains forward-looking statements that relate to future events and future operating, economic and financial results of Campari Group. By their nature, forward-looking statements involve risk and uncertainty because they depend on the occurrence of future events and circums
Slide 41: Contacts
CONTACTS i n ve 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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