Pernod Ricard SA · EURONEXT:RI
Pernod Ricard SA — FY2011 Earnings Presentation
89 slides from Pernod Ricard SA's earnings presentation, Sep 1, 2011
Slide 1: 2010/11 Full-Year Sales and Annual Results
2010/11 Full-Year Sales and Annual Results* Very strong performance, above of initial targets Sales: +7%** Profit from recurring operations: +8%** Group share of net profit: +10% Significant reduction in net debt to € 9 billion This presentation can be downloaded from our website: www.pernod-ricard.
Slide 2: Presentation structure
Presentation structure - Overall analysis - Sales analysis - Profit from recurring operations - Group share of NPRO* - Non-recurring items and net profit - Conclusion and outlook *Net profit from recurring operations 2
Slide 3: Pernod Ricard 2010/2011 highlights
Pernod Ricard 2010/2011 highlights Efficient strategy Financial targets exceeded Dynamic sales: all-time volume record for the Top 14 and 7 of its brands Strong advertising and promotion support and numerous initiatives in the field of innovation Strong growth in earnings and continued debt reduc
Slide 4: 2010/11 Key Figures
2010/11 Key Figures Sales: € 7,643 million (+8%, organic growth +7%) Top 14: volume +6%, sales +10%* Emerging markets**: sales +17%* Renewed growth in mature markets: sales +1.5%* Increase in gross margin to 60.3% (vs. 59.6% in 2009/10) Advertising & promotion expenditure: € 1,441 million, up
Slide 5: 2010/11 Key Figures
2010/11 Key Figures Strong growth in earnings: Profit from recurring operations: € 1,909 million (+6%, organic growth +8%) Group share of net profit from recurring operations: € 1,092 million (+9%) Group share of net profit: € 1,045 million (+10%) Continued rapid debt reduction: Significant debt
Slide 6: Presentation structure
Presentation structure - Overall analysis - Sales analysis - Profit from recurring operations - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 6
Slide 7: Change in 2010/11 Q4 sales
Change in 2010/11 Q4 sales +6% -5% -2% 109 (91) (32) 1,755 1,741 -1% 09/10 Q4 Organic Forex Group 10/11 Q4 sales growth impact structure sales Organic growth: +6% (Spirits +7%, Wines +1%) Forex effect primarily related to the fall in value of the USD, CNY and INR Group structure effect: dispos
Slide 8: Change in 2010/11 Q4 sales
Change in 2010/11 Q4 sales Strong Q4, organic sales growth +6%, in line with the first 9 months of the financial year 20 15 +10% 10 +6% +5% +6% 5 0 -5 Q2 10/11 Q3 10/11 Q4 10/11 Q1 10/11 -10 Continued sustained growth (+8%*) of the Top 14 Confirmation of very strong growth in emerging markets** (
Slide 9: Change in 2010/11 Full-Year Sales
Change in 2010/11 Full-Year Sales +7% +4% -2% (175) 277 459 7,081 7,643 +8% 09/10 sales Organic Forex Group 10/11 sales growth impact structure Organic growth: +7% (Spirits +8%, modest growth for Wines) Forex effect primarily due to the rise in value of the following currencies: CNY, USD, AUD, I
Slide 10: Presentation structure
Presentation structure - Overall analysis - Sales analysis - by region - by brand / marketing initiatives - Profit from recurring operations - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 10
Slide 11: Organic sales growth by region
Organic sales growth by region FY FY 2009/10 2010/11 Asia-RoW +9% +15% America +4% +5% Europe (excluding France) -5% 0% France 0% +4% World +2% +7% Growth in all regions: • Renewed double-digit growth in Asia-RoW • Significant growth in the Americas • Improved trend in Europe, with a return to buoya
Slide 12: Asia – Rest of World: Analysis by category
Asia – Rest of World Analysis by category FY FY Organic (€ millions) ∆ ∆ 2009/10 2010/11 Sales 2,273 2,711 +19% +15% Very strong dynamism Martell (+26%*): leading growth driver with a very favourable price/mix effect Top 14 Scotch whiskies (+16%*): 2nd growth driver Indian whiskies (+30%*): 3r
Slide 13: Asia – Rest of World: Analysis by country
Asia – Rest of World Analysis by country China: very strong growth (+23%*) driven by Martell, Scotch whiskies and Jacob’s Creek India: very strong 33%* increase, due to local whiskies. Chivas and Absolut growing in significance Other fast-expanding emerging markets: Vietnam (+50%*), Africa/ME
Slide 14: Americas: Analysis by category
Americas Analysis by category FY FY Organic (€ millions) ∆ ∆ 2009/10 2010/11 Sales 1,911 2,068 +8% +5% Top 14 growth accelerating Top 14 (+7%*vs. +4%* in 2009/10): main growth generator, particularly due to Jameson, Malibu and The Glenlivet in the US, Absolut in Brazil, Chivas in Duty Free markets
Slide 15: Americas: Analysis by country: US
Americas Analysis by country: US Good market trends, both in terms of dynamics and mix: • Nielsen 12 months at 30 June 2011 + 4% and NABCA +3% • Return to premiumisation and confirmed recovery in the on-trade • Decrease in the promotional intensity of certain competitors Pernod Ricard: positive
Slide 16: Americas: other American countries
Americas Analysis by country: other American countries Brazil: strong growth (+12%*) , driven by the Top 14 (+41%*), particularly Absolut and Scotch whiskies Mexico: sustained growth (+7%*) with a very strong development of Scotch Whiskies Canada: moderate sales growth, with contrasting perfor
Slide 17: Europe (excluding France): Analysis by category
Europe (excluding France) Analysis by category FY FY Organic (€ millions) ∆ ∆ 2009/10 2010/11 Sales 2,176 2,114 -3% - Marked improvement in trend over the year Sales stable* in 2010/11 vs. -5%* in 2009/10 Top 14: leading growth driver (+4%*) driven by Jameson, Absolut, Beefeater, Havana Club, Mumm
Slide 18: Europe (excluding France): Analysis by country
Europe (excluding France) Analysis by country Western Europe: sales decreased by 2%*, an improved trend vs. 2009/10 (-5%*) • Decline primarily related to two markets: Greece (-33%*) and Spain (-5%*) • Germany: moderate growth due to the Top 14 (+11%*), driven by Havana Club and Absolut • Virtual s
Slide 19: France
France FY FY Organic (€ millions) ∆ ∆ 2009/10 2010/11 Sales 721 750 +4% +4% Continued sound growth Continued strong performance of the Top 14 brands (+6%*), especially Ricard, Ballantine’s, Mumm, Chivas, Havana Club, Perrier-Jouët, Jameson and Absolut Ricard (+5%*) benefited from the launch of t
Slide 20: Presentation structure
Presentation structure - Overall analysis - Sales analysis - by region - by brand / marketing initiatives - Profit from recurring operations - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 20
Slide 21: Organic sales growth by category
Organic sales growth by category % sales FY FY 2009/10 2010/11 Top 14 Spirits & Champagne 58% +4% +10% Priority Premium Wines 5% -2% 0% 18 key local spirits brands 17% +4% +3% Other 20% -3% +1% Total 100% +2% +7% Highly favourable growth mix Premium brands* represented 71% of sales to 30 June 2011,
Slide 22: Portfolio review: Top 14 Spirits & Champagne
Portfolio review Top 14 Spirits & Champagne Volume: +6% Sales: +10%* % of Group sales: 58% *Organic growth 22
Slide 23: Top 14 Spirits & Champagne
Top 14 Spirits & Champagne Increased growth compared to 2009/10 with a continued very favourable price/mix effect (+4%) Organic growth Volume Net sales price/mix effect 5 out of 14 brands reported Absolut 6% 6% 0% Chivas Regal 7% 9% 2% double-digit organic sales Ballantine's 7% 8% 1% growth Ricard
Slide 24: Top 14: Iconic brands
Top 14 Spirits & Champagne Iconic brands Volume growth +6% (sales +6%*) including +2% in the US and +9% outside the US Overall price/mix effect turned positive in HY2 to +1% Brazil, South Korea, Russia, Turkey, Germany, Andean countries 11 M cs +6% and the UK accounted for half the growth* Growt
Slide 25: Top 14: Premium brands
Top 14 Spirits & Champagne Premium brands Growth* driven by Asia-RoW (2/3 of growth) Ballantine’s 15 yo and above grew +21%* (vs. +5%* for Ballantine’s Finest) Over 1 M cs sold in France, very strong growth in Poland (becoming the 3rd export market in Europe) and in Latin America 6.3 M cs +7% D
Slide 26: Top 14: Premium brands
Top 14 Spirits & Champagne Premium brands Acceleration in HY2, driven by the US (success of "Malibu cocktails") Recovery in Europe (+2%* vs. -7%* in 2009/10) with contrasting 3.5 M cs +6% situations Over 3 M cs sold during this financial year Exceptional performance driven by the US, with 1M cs
Slide 27: Top 14: Prestige brands
Top 14 Spirits & Champagne Prestige brands Outstanding growth (+22%*) with a very favourable price/mix effect 1.8 M cs +11% Very favourable quality mix (XO +29%*, Noblige +42%*) Strong development both in its key market (US +7%*) and Duty Free and many markets experiencing rapid growth 0.7 M cs +
Slide 28: Priority Premium Wines: return to growth
Priority Premium Wines: return to growth for the first time since 2007/2008 Volume: -1% Sales: +0.4%* Value strategy: contribution after A&P +6%* % of Group sales: 5% Volume -3% sales -1%* Volume +2% sales -3%* Volume +6% sales +8%* Volume +3% sales +6%* *Organic growth 28
Slide 29: 18 key local spirits brands
18 key local spirits brands: continued growth, driven by Indian whiskies Volume: +6% Sales: +3%* % of Group sales: 17% Very strong development of Indian whiskies (+30%*), strategic business for the Group Overall performance adversely affected by the decline of Seagram’s Gin in the US (-12%*) and
Slide 30: Key marketing & innovation initiatives
Key marketing & innovation initiatives Product innovations New packaging Limited editions Consumer promotions Sponsorships Digital initiatives New advertising campaigns 30
Slide 31: Growth through innovation: Product innovations
Growth through innovation: Product innovations ABSOLUT ABSOLUT ABSOLUT ABSOLUT MALIBU MALIBU MALIBU Wild Tea Berri Açaï Orient Elyx EZ Cocktails Fresh Black Apple ROYAL ROYAL SALUTE JAMESON THE HAVANA BRANCOTT JACOB’S SALUTE A Tribute to Select GLENLIVET CLUB ESTATE CREEK 62 Gun Salute Honour Reserv
Slide 32: Growth through innovation: New packaging
Growth through innovation: New packaging MARTELL MUMM VSOP Expert Range Packaging New Packaging RICARD New Bottle HAVANA CLUB 3 Años THE GLENLIVET New Packaging New Range Packaging 32
Slide 33: Growth through innovation: Limited editions
Growth through innovation: Limited editions ABSOLUT ABSOLUT ABSOLUT ABSOLUT ABSOLUT MALIBU BEEFEATER Watkins Svea Glimmer Brooklyn SF Snowflake Winter Gin CHIVAS REGAL 18 CHIVAS REGAL 18 JAMESON PERRIER-JOUËT Christian Lacroix Vivienne Westwood St Patrick’s Day Belle Epoque sculptures 33
Slide 34: Growth through innovation: Consumer promotions
Growth through innovation: Consumer promotions ON-TRADE OFF-TRADE & EVENTS BEEFEATER 24 BALLANTINE’S MARTELL MARTELL Tea Salons Blue Safari Tastings Asian Duty Free Boutiques Cognac Trunk Tour BEEFEATER 24 PERRIER-JOUËT MUMM JAMESON Freeze Serve Luxury Hotel Salons Explorer Experiences Cult Film Clu
Slide 35: Growth through innovation: Sponsorships
Growth through innovation: Sponsorships BALLANTINE’S CHAMPIONSHIP JACOB’S CREEK JACOB’S CREEK South Korea Australian Open Tennis Sponsorship Official Wine of Wimbledon CHIVAS REGAL 25 ROYAL SALUTE Cannes Film Festival Polo Sponsorship BRANCOTT ESTATE Rugby World Cup Sponsorship CHIVAS REGAL Asian Fi
Slide 36: Growth through innovation: Digital initiatives
Growth through innovation: Digital initiatives ABSOLUT CHIVAS REGAL BALLANTINE’S Finest BALLANTINE’S Finest Drinkspiration iPad App China: Voices of Chivalry Virtual Band ElPlanBtv Virtual Music Platform Human API JAMESON Empire ‘Done in 60 Seconds’ MALIBU PERRIER-JOUËT Music Mixer app Favourite Web
Slide 37: Growth through innovation: New advertising campaigns
Growth through innovation: New advertising campaigns ABSOLUT - Blank CHIVAS REGAL - Live with Chivalry CHIVAS JAMESON Global - Easygoing Irish JAMESON - REGAL 18 Mexico BALLANTINE’S - Leave an Impression KAHLÚA - Delicioso HAVANA CLUB Global MARTELL Cordon Bleu MARTELL - Noblige JACOB’S CREEK JACOB’
Slide 38: Presentation structure
Presentation structure - Overall analysis - Sales analysis - Profit from recurring operations - Summary income statement - Analysis by geographic region - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 38
Slide 39: Summary income statement
Summary income statement FY FY ∆ Organic ∆ Organic ∆ (€ millions) 09/10 10/11 10/11 09/10 Sales 7,081 7,643 +8% +7% +2% Gross margin after logistics costs 4,218 4,610 +9% +8% +4% GM / sales 59.6% 60.3% Advertising & promotion expenditure (1,262) (1,441) +14% +11% +5% A&P / sales 17.8% 18.9% Contribu
Slide 40: Foreign exchange / group structure effects on PRO
Foreign exchange / group structure effects on PRO 138 (49) 25 1,909 (€ millions) 1,795 -3% +1% +8% PRO FY 09/10 Organic Group Forex PRO FY 10/11 growth structure impact € 49 million negative group structure on 2010/11 PRO, due particularly to the disposal of operations in Spain, Scandinavia and Ne
Slide 41: Gross margin after logistics costs
Gross margin after logistics costs FY Organic FY (€ millions) 09/10 growth 10/11 Gross margin after logistics costs 4,218 +8% 4,610 GM / sales 59.6% 60.3% +75bps Further strong improvement in gross margin after logistics costs to sales ratio This increase was particularly due to: • a favourable
Slide 42: Advertising & promotion expenditure
Advertising & promotion expenditure FY FY (€ millions) 09/10 Organic growth 10/11 A&P expenditure (1,262) +11% (1,441) A&P / sales 17.8% 18.9% +103bps As announced, Pernod Ricard significantly increased expenditure to support its brands (+11%*) A&P to sales ratio growth mainly due to the increas
Slide 43: Structure costs
Structure costs FY FY (€ millions) 09/10 Organic growth 10/11 Structure costs* (1,160) +5% (1,260) Structure costs / sales 16.4% 16.5% * Structure costs: Selling expenses + General and administrative expenses + Other income/(expenses) +10bps +5% increase* in structure costs, which was less than sa
Slide 44: Profit from recurring operations
Profit from recurring operations FY FY (€ millions) 09/10 Organic growth 10/11 Profit from recurring operations 1,795 +8% 1,909 PRO / sales 25.4% 25.0% -38bps +8%* PRO growth: • Growth doubled compared to 2009/10 (+4%*) • Growth exceeded the target announced at the start of the financial year (+6%
Slide 45: Presentation structure
Presentation structure - Group Share of NPRO - Sales analysis - Profit from recurring operations - Summary income statement - Analysis by geographic region - Group Share of NPRO - Non-recurring items and net profit - Conclusion and outlook 45
Slide 46: Contribution to PRO growth by region
Contribution to PRO growth* by region Profit from recurring operations (€ millions) 107 15 11 3 +3% +2% +2% 1,933 1,795 +20% PRO FY Asia-RoW Americas Europe excl. France PRO FY 09/10 France 10/11 on a like-for-like basis All regions contributed to organic growth in the Group’s profit from recurring
Slide 47: Asia – Rest of World
Asia – Rest of World (€ millions) FY FY ∆ Organic 09/10 10/11 growth Sales(1) 2,273 2,711 +19% +15% Gross margin after logistics costs 1,263 1,559 +23% +19% GM / sales 55.6% 57.5% Advertising & promotion expenditure (424) (531) +25% +19% A&P / sales 18.7% 19.6% Profit from recurring operations(2) 56
Slide 48: Americas
Americas FY FY Organic (€ millions) ∆ 09/10 10/11 growth Sales 1,911 2,068 +8% +5% Gross margin after logistics costs 1,193 1,277 +7% +5% GM / sales 62.4% 61.7% Advertising & promotion expenditure (332) (379) +14% +10% A&P / sales 17.4% 18.3% Profit from recurring operations(1) 541 558 +3% +3% PRO /
Slide 49: Europe (excluding France)
Europe (excluding France) FY FY Organic (€ millions) ∆ 09/10 10/11 growth Sales 2,176 2,114 -3% - Gross margin after logistics costs 1,234 1,228 - +2% GM / sales 56.7% 58.1% Advertising & promotion expenditure (337) (343) +2% +2% A&P / sales 15.5% 16.2% Profit from recurring operations(1) 501 479 -5
Slide 50: France
France FY FY Organic (€ millions) ∆ 09/10 10/11 growth Sales 721 750 +4% +4% Gross margin after logistics costs 528 546 +3% +4% GM / sales 73.2% 72.7% Advertising & promotion expenditure (170) (189) +11% +11% A&P / sales 23.6% 25.2% Profit from recurring operations(1) 187 189 +1% +2% PRO / sales 25.
Slide 51: Analysis by geographic region
Analysis by geographic region Sales Profit from recurring operations FY 09/10 FY 09/10 France Europe FY 10/11 FY 10/11 Americas Asia and ROW Asia - RoW strengthened its status as the Group’s main region in 2010/11 Contribution of each region consistent between sales and PRO 51
Slide 52: Share of emerging markets in 2010/11
Share of emerging markets in 2010/11 Sales Profit from recurring operations FY 09/10 FY 09/10 Emerging markets* Mature markets FY 10/11 FY 10/11 An increasingly powerful growth driver for the Group * Annual GNP per capita < USD 10,000 52
Slide 53: Presentation structure
Presentation structure - Group share of NPRO - Sales analysis - Profit from recurring operations - Summary income statement - Analysis by geographic region - Group share of NPRO - Non-recurring items and net profit - Conclusion and outlook 53
Slide 54: Financial income/(expenses) from recurring operations
Financial income/(expenses) from recurring operations FY FY (€ millions) 09/10 10/11 Net financing costs (446) (446) Other financial income/(expenses) from recurring operations (51) (23) Financial income/(expenses) from recurring operations (497) (469) Improvement in financial expenses from recurrin
Slide 55: Free Cash Flow
Free Cash Flow (€ millions) FY 09/10 FY 10/11 Profit from recurring operations 1,795 1,909 Amortisation, depreciation and provision movements and other 196 174 Self-financing capacity from recurring operations 1,991 2,083 Decrease/(increase) in WCR (4) 15 Financial income/(expenses) and taxes (643)
Slide 56: Free Cash Flow
Free Cash Flow Strong generation of FCF from recurring operations, due to: • Growth in profit from recurring operations • Controlled working capital requirements, down € 15 million, despite sales growth: ⌐ Moderate growth in ageing inventories (€ 85 million) ⌐ Decline of € 100 million in operating
Slide 57: Change in net debt
Change in net debt (€ millions) 10,584 (1,001) (2) 389 9,970 (932) 9,038 € (614) million € (1,546) million Net Debt at Disposals/acquisitions of FCF Dividends Net Debt at Translation Net Debt at 30 June 10 treasury shares + other* 30 June 11 adjustment 30 June 11 before translation * Including dispo
Slide 58: Change in Net Debt / EBITDA ratio
Change in Net Debt / EBITDA ratio Closing rate Average rate Change in EUR/USD rate: 09/10 10/11 1.23 1.45 1.39 1.36 Ratio at 30 June 2010 5.3 4.9 EBITDA & cash generation excluding (0.6) (0.6) forex and group structure effects (0.5) Group structure 0.1 0.1 Forex impact (0.6) Ratio at 30 June 2
Slide 59: 2010/11 debt refinancing
2010/11 debt refinancing Active management of refinancing with attractive conditions: • two bond issues EUR 1,000 million in March 2011 USD 1,000 million (inaugural issue in the US) in April 2011 • two bilateral financing packages of € 150 million and USD 201 million in December 2010 At 30 J
Slide 60: Debt maturity at June 2011
Debt maturity at 30 June 2011 At 30 June 2011, Pernod Ricard held € 0.8 billion in cash and € 1.5 billion in undrawn credit lines No major debt maturities before July 2013 (€ billions) 7 6 5 0,9 4 Cash 3 Other 2 4,3 Commercial paper 1 1,3 1,0 Bonds 0,3 0,2 0,8 0,1 0,7 0 0,1 Syndicated loan -0,8
Slide 61: Gross debt hedging at June 2011
Gross debt hedging at 30 June 2011 (€ millions) 12 000 9,812 10 000 8 000 54% 47% 53% Fixed 6 000 Collars 56% 4 000 53% 9% Variable 2 000 16% 3% 31% 41% 37% 0 Euro USD Total Debt breakdown* by currency consistent with that of EBITDA About 1/3 of debt maintained at variable rate * After forex hed
Slide 62: Income tax
Income tax Corporate income tax: € (318) million Corporate income tax on items from Corporate income tax on non- recurring operations: recurring items: € (1) million € (317) million - Rate: 22% Effective corporate income tax rate of 22%, a moderate increase compared to 2009/10 (20.9%) Non-recurr
Slide 63: Group Share of NPRO and Net earnings per share
Group Share of NPRO and Net earnings per share from recurring operations FY FY ∆ (€ millions and €/share) 09/10 10/11 Profit from recurring operations 1,795 1,909 +6% Financial income/(expenses) from recurring operations (497) (469) -5% Income tax on items from recurring operations (271) (317) +17%
Slide 64: Dividend: €1.44 / share
Dividend: €1.44 / share (€) 06/07(1) 07/08(1) 08/09 09/10 10/11* Proposed 1.17 1.22 0.50 1.34 1.44 dividend *10/11 dividend subject to approval by the Annual General Meeting of 15 November 2011 A dividend of €1.44 (+7.5%) is proposed for the 2010/11 financial year, in line with the usual policy of
Slide 65: Presentation structure
Presentation structure - Group Share of NPRO - Sales analysis - Profit from recurring operations - Summary income statement - Analysis by geographic region - Group Share of NPRO - Non-recurring items and net profit - Conclusion and outlook 65
Slide 66: Non-recurring items
Non-recurring items Other operating income and expenses (€ millions) FY 10/11 Capital gains and losses on disposals and asset valuations • Impact of disposals: certain Spanish and New Zealand assets, Suntory equity investment, … 19 • Impact of impairment tests on assets: primarily Polish vodkas (4
Slide 67: Group share of net profit
Group share of net profit FY FY (€ millions) ∆ 09/10 10/11 Profit from recurring operations 1,795 1,909 +6% Other operating income and expenses (88) (56) NA Operating profit 1,707 1,852 +8% Financial income/(expenses) from recurring operations (497) (469) -5% Other non-recurring financial items (10)
Slide 68: Conclusion and outlook
AA Pernod Ricard Créateurs de comivialité Conclusion and outlook
Slide 69: Conclusion for the 2010/11 financial year
Conclusion for the 2010/11 financial year In 2010/11, Pernod Ricard successfully: • strengthened its market positions, particularly in emerging markets, where very strong growth was achieved once again • continued its strategy of innovation and premiumisation, thanks to substantial, targeted invest
Slide 70: Outlook and guidance for the 2011/12 financial year
Outlook and guidance for the 2011/12 financial year Our remarkable performance over the 2010/11 financial year demonstrated the relevance of our strategy and of our decentralised model For 2011/12: • the beginning of the financial year confirms the resilience of our markets • we will continue to g
Slide 71: Outlook and guidance for the 2011/12 financial year
Outlook and guidance for the 2011/12 financial year In line with our practice, we will communicate our earnings guidance for the current financial year as part of our communication on 1st quarter sales, on 20 October 2011 71
Slide 72: Next communications
Next communications Next communications from Pernod Ricard Holding: • 2011/12 Q1 sales and 2011/12 guidance: 20 October 2011 • 2010/11 Annual General Meeting: Tuesday 15 November 2011 • Americas conference call: Thursday 15 December 2011, with Philippe Dréano • Asia conference call: Tuesday 20 Mar
Slide 73: Pernod Ricard
“4 e~w ‘=> Pernod Ricard Créaleurs de ComiVvialiCé
Slide 74: Appendices
2010/11 Full-Year Sales and Annual Results Appendices 74
Slide 75: Brand Organic Growth
Brand Organic Growth Volumes FY Volumes FY 2009/10 2010/11 Net Sales Volume growth Price/mix effect (Million of 9 litre (Million of 9 litre organic growth cases) cases) Absolut* 10.4 11.0 6% 6% 0% Chivas Regal* 4.3 4.6 7% 9% 2% Ballantine's 5.9 6.3 7% 8% 1% Ricard 5.4 5.4 -1% 3% 4% Jameson* 2.9 3.4
Slide 76: Sales Analysis by Period and Region
Sales Analysis by Period and Region Net Sales FY 2009/10 FY 2010/11 Change Organic Growth Group Structure Forex impact (€ millions) France 721 10.2% 750 9.8% 30 4% 30 4% (0) 0% 0 0% Europe excl. France 2,176 30.7% 2,114 27.7% (63) -3% 5 0% (101) -5% 33 2% Americas 1,911 27.0% 2,068 27.1% 157 8% 87 5
Slide 77: Summary Consolidated Income Statement
Summary Consolidated Income Statement (€ millions) 30/06/2010 30/06/2011 Change Net sales 7,081 7,643 8% Gross Margin after logistics costs 4,218 4,610 9% A&P expenditure (1,262) (1,441) 14% Contribution after A&P expenditure 2,956 3,169 7% Structure costs (1,160) (1,260) 9% Profit from recurring op
Slide 78: Minority interests and other
Minority interests and other (€ millions) FY 09/10 FY 09/10 Minority interests (27) (32) Other 1 1 Minority interests notably include: • Havana Club • Corby (Canada) • JBC (South Korea) 78
Slide 79: Profit from recurring operations by region
Profit from recurring operations by region World Group (€ millions) FY 2009/10 FY 2010/11 Change Organic Growth Forex impact Structure Net sales (Excl. T&D) 7,081 100.0% 7,643 100.0% 562 8% 459 7% (175) -2% 277 4% Gross margin after logistics costs 4,218 59.6% 4,610 60.3% 392 9% 338 8% (56) -1% 111
Slide 80: Profit from recurring operations by region
Profit from recurring operations by region Europe excluding France Group (€ millions) FY 2009/10 FY 2009/10 Change Organic Growth Forex impact Structure Net sales (Excl. T&D) 2,176 100.0% 2,114 100.0% (63) -3% 5 0% (101) -5% 33 2% Gross margin after logistics costs 1,234 56.7% 1,228 58.1% (6) 0% 20
Slide 81: Foreign Exchange Effect 2010/11
Foreign Exchange Effect 2010/11 On Profit Forex impact FY 2010/11 Average rates evolution On Net from (€ millions) Sales Recurring 2009/10 2010/11 % Operations US dollar USD 1.39 1.36 -2.0% 31 22 Chinese yuan CNY 9.50 9.03 -4.9% 33 17 Indian rupee INR 64.93 61.80 -4.8% 20 6 Korean won KRW 1.64 1.54
Slide 82: Sensitivity of profit and debt to EUR/USD exchange rate
Reminder of sensitivity of profit and debt to EUR/USD exchange rate Estimated impact of a 1% depreciation of the USD and linked currencies(1): • € (12) million on profit from recurring operations (PRO) and + € 2 million on financial expenses, i.e. € (10) million on pre-tax profit from recurring op
Slide 83: Group Structure Effect
Group Structure Effect On Profit from Group structure FY 2010/11 On Net Sales Recurring (€ millions) Operations Scandinavian assets (72) (20) New Zealand assets (25) (6) Spanish assets (19) (6) Other (58) (17) Total Group Structure (175) (49) 83
Slide 84: Consolidated Balance Sheet 1/2
Consolidated Balance Sheet 1/2 Assets 30/06/2010 30/06/2011 (€ millions) (Net book value) Non-current assets Intangible assets and goodwill 17,757 16,332 Property, plant and equipment and investments 2,083 2,156 Deferred tax assets 1,307 1,459 Total non-current assets 21,148 19,947 Current assets In
Slide 85: Consolidated Balance Sheet 2/2
Consolidated Balance Sheet 2/2 Liabilities and shareholders’ equity 30/06/2010 30/06/2011 (€ millions) Shareholders’ equity 9,122 9,284 Minority interests 216 190 of which profit attributable to minority interests 27 32 Shareholders’ equity – attributable to equity 9,337 9,474 holders of the parent
Slide 86: Analysis of working capital requirement
Analysis of working capital requirement ∆ June 2011 FX effects and FY 2010/11 FY 2009/10 (€ millions) June 2010 June 2011 WC variation vs. June 2010 reclassifications WC variation Work-in-progress 3,170 3,150 (20) (105) 85 104 Trade receivables before factoring/securitization 1,596 1,466 (130) (128)
Slide 87: Change in net debt
Change in net debt (€ millions) 30/06/2010 30/06/2011 Self-financing capacity 1,893 1,916 Decrease (increase) in working capital requirements (48) 32 Financial result and tax cash (573) (734) Net acquisitions of non financial assets (163) (213) Free Cash Flow 1,110 1,001 Disposals/acquisitions asset
Slide 88: Bond issues
Bond issues Currency Par value Premium Issue date Maturity date Comments € 300 M Euribor 3M + 50 bps 06/12/2006 06/06/2011 Redeemed € 550 M 4.625% 06/12/2006 06/12/2013 € 800 M 7.000% 15/06/2009 15/01/2015 Euro € 1,200 M 4.875% 18/03/2010 18/03/2016 € 1,000 M 5.000% 15/03/2011 15/03/2017 Oversubscri
Slide 89: Number of shares used in EPS calculation
Number of shares used in EPS calculation (x1000) FY FY 09/10 10/11 Number of shares in issue at end of period 264,232 264,722 Weighted number of shares in issue (pro rata temporis) 263,950 264,424 Number of treasury shares (1,257) (1,740) Dilutive impact of stock options 2,164 2,348 Number of shares