05 July 2018 Welcome & Introduction Brian Stewart Chairman - - PowerPoint PPT Presentation

05 July 2018

C&C Group plc | Slide 2 C&C Group plc | Slide 2

Welcome & Introduction

Brian Stewart

Chairman

C&C Group plc | Slide 3 C&C Group plc | Slide 3

FY2018 | Business Review

Stephen Glancey

CEO

C&C Group plc | Slide 4 C&C Group plc | Slide 4

Strategic & Operational Highlights

➢ Resilient performance across our branded portfolio in UK and Ireland ➢ Strengthened route-to-market across the UK ➢ Built momentum through first year of AB InBev cider distribution agreement ➢ Strong performance in our Scottish businesses; Tennent’s driving share growth and revenues +5%; wholesale volumes, customers and revenues up ➢ Bulmers brand investment grew share in the off-trade and held share in packaged on-trade; competition remains intense in draught ➢ Strong organic growth in super-premium and craft with volumes +41% ➢ Up-tiering distribution with proven partners in International

Year of stabilisation & strategic investments Stable base to capitalise on opportunities

C&C Group plc | Slide 5 C&C Group plc | Slide 5

FY2018 | Performance Overview

€86.1 million

Operating Profit, before €1.2m of associate income (mainly Admiral) Down 7.0%

€548.2 million

Net Revenues Down 4.9%

2.37x

Net Debt to EBITDA Strong balance sheet & pension schemes in surplus

€70.8 million

Free cash flow (Pre-exceptionals) 70.5% Conversion of EBITDA

€33 million

Share buybacks in FY2018 €163 million share buybacks

• ver last 3 years1

€53 million

Investment in Craft Brands & Admiral Taverns Supported by strong balance sheet & underlying cashflow

15.7%

Operating Margin Down 40bps

€241.5 million

UK & Ireland Branded Net Revenues Up 0.8%

• 1. Share buy-backs excl. stamp duty and commissions Jan15-Apr18

€9.37c

Final Dividend Full Year Dividend of €14.58c (+1.7% YoY)

C&C Group plc | Slide 6 C&C Group plc | Slide 6

Tennent’s investment….

Investment

• > 5000 installations
• 40% growth in social media

engagement

Font roll out programme Sponsorship

• Tennent’s sponsors Scottish rugby

Social media “MUP Ready”

• Premiumisation and pack

re-engineering at key price points

C&C Group plc | Slide 7 C&C Group plc | Slide 7

…leading to strong Tennent’s performance

2 4 6 8 10 12 14

1 2 3 4 5 6 7 8 9 10

YouGov Purchase Intent - Scotland

1. Constant currency

Performance

Revenue Growth Brand Strength ….growing rate performance €76.7 €80.8 FY2017 FY2018

+5.3%

1

….plus revenue growth

C&C Group plc | Slide 8 C&C Group plc | Slide 8

Bulmers brand investment…

C&C Group plc | Slide 9 C&C Group plc | Slide 9

…strengthening brand scores

1. Brand Health Dipstick Average scores on 5 key questions 18-24 age group – September 2016 2. Source: Company commissioned market research conducted by Ipsos MRBI (2015) and Behaviour & Attitudes in 2017

Brand Health Scores1

Top 3 LAD brands in ROI

19 25 42

Brand Salience2

'A brand I’ve heard good things about’

46% 54%

2015 2017

Brand Affinity2

‘Popular with younger Drinkers’

32% 40%

2015 2017

C&C Group plc | Slide 10 C&C Group plc | Slide 10

Magners & GB

• Good 1st year of AB InBev cider distribution agreement
• Slow start, but momentum built through year
• Magners performed well in range reviews with major

retailers

• Extended distribution reach, especially in convenience

and wholesale

• Magners is +12% in Nielsen MATs to Feb18 for Impulse
• Good performance by K Cider
• Enhanced distribution, particularly in convenience
• Good contribution from Orchard Pig1 acquisition

FY2017 FY2018

+0.3%

ABI: Flat Scotland IFT: +3.2% Other cider brands

• 18%

+19% GB cider volumes +3.6%

C&C Group plc | Slide 11 C&C Group plc | Slide 11

52.5 kHL

107.6 kHL FY2017 FY2018

Organic growth +41.3%

Volume Growth

Growing Super-Premium & Craft Portfolio

In house innovation & brand development Exclusive UK and/or ROI distribution of quality imports Partnerships with Local craft

• 1. In RoI only 2. Acquired May 2017; contributed 33 kHL

✓ Launch of Heverlee in off-trade (UK & Ireland) ✓ UK-wide distribution ✓ Menabrea +55% in GB ✓ Rights to San Miguel in Ireland ✓ Secured rights to Tsingtao (UK & ROI) ✓ Acquisition of Orchard Pig ✓ Further investment in 5 Lamps ✓ 5 Lamps now in 303 pubs in Dublin

FY2018 Highlights

Innovation Agency Craft

1 2

Current Portfolio

✓ High margin ✓ High ROIC ✓ UK-wide opportunity

FY2019 Potential

Video

C&C Group plc | Slide 13 C&C Group plc | Slide 13

• Award winning operator of c.850 pubs across the UK
• Partnership with management and Proprium Capital
• Like-for-like EBITDA +0.8% (3 months to February 2018)
• Good Q1 take-up of Magners promotions

The Nelson, Mudeford, Christchurch BH23 3NJ, UK

Strengthened route-to-market in the UK

• Largest independent distributor to the UK on-trade hospitality sector
• Over 4,000 products, including beers, wines, spirits, cider and soft drinks
• 300+ suppliers
• Direct access to an incremental c.23,000 pre-dominantly on-trade customers
• Good progress in restoring service levels and key operating KPI’s

C&C Group plc | Slide 14 C&C Group plc | Slide 14

Current Trading & Outlook

Current Trading

• Good start to FY19; helped by favourable weather and World Cup

➢ MUP in Scotland has been in line with our expectations ➢ Bulmers returned to moderate volume growth

Outlook

• Branded volume growth through AB InBev, Admiral and Super-Premium
• Grow value in Tennent’s (incl. MUP)
• Competitive pressure in Ireland, but stabilising profit
• Matthew Clark – solid progress in stabilising the business
• Cash generation and de-lever towards 2.0x Net Debt/EBITDA

Resilient business, strong cash conversion, strategic growth drivers in place

C&C Group plc | Slide 15 C&C Group plc | Slide 15

Formal Business

Brian Stewart

Chairman

Resolution 1

C&C Group plc | Slide 17 C&C Group plc | Slide 17

Resolution 1

To consider the financial statements for the year ended 28 February 2018 and the reports of the Directors and the auditors thereon

FOR: 231,147,035 SHARES AGAINST: 7,918 SHARES TOTAL: 231,154,953 SHARES WITHHELD: 217 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 2

C&C Group plc | Slide 19 C&C Group plc | Slide 19

Resolution 2

To confirm and declare dividends

FOR: 231,148,674 SHARES AGAINST: 6,279 SHARES TOTAL: 231,154,953 SHARES WITHHELD: 217 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 3(a)

C&C Group plc | Slide 21 C&C Group plc | Slide 21

Resolution 3(a)

To elect Jonathan Solesbury

FOR: 229,634,536 SHARES AGAINST: 1,514,967 SHARES TOTAL: 231,149,503 SHARES WITHHELD: 5,667 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 3(b)

C&C Group plc | Slide 23 C&C Group plc | Slide 23

Resolution 3(b)

To re-elect Stewart Gilliland

FOR: 229,171,276 SHARES AGAINST: 1,981,670 SHARES TOTAL: 231,152,946 SHARES WITHHELD: 2,224 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 3(c)

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Resolution 3(c)

To re-elect Stephen Glancey

FOR: 229,767,750 SHARES AGAINST: 1,385,196 SHARES TOTAL: 231,152,946 SHARES WITHHELD: 2,224 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 3(d)

C&C Group plc | Slide 27 C&C Group plc | Slide 27

Resolution 3(d)

To re-elect Joris Brams

FOR: 229,743,469 SHARES AGAINST: 1,408,873 SHARES TOTAL: 231,152,342 SHARES WITHHELD: 2,828 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 3(e)

C&C Group plc | Slide 29 C&C Group plc | Slide 29

Resolution 3(e)

To re-elect Andrea Pozzi

FOR: 229,756,285 SHARES AGAINST: 1,396,057 SHARES TOTAL: 231,152,342 SHARES WITHHELD: 2,828 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 3(f)

C&C Group plc | Slide 31 C&C Group plc | Slide 31

Resolution 3(f)

To re-elect Jim Clerkin

FOR: 230,481,483 SHARES AGAINST: 670,607 SHARES TOTAL: 231,152,090 SHARES WITHHELD: 3,080 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 3(g)

C&C Group plc | Slide 33 C&C Group plc | Slide 33

Resolution 3(g)

To re-elect Vincent Crowley

FOR: 228,575,363 SHARES AGAINST: 2,576,727 SHARES TOTAL: 231,152,090 SHARES WITHHELD: 3,080 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 3(h)

C&C Group plc | Slide 35 C&C Group plc | Slide 35

Resolution 3(h)

To re-elect Emer Finnan

FOR: 230,472,580 SHARES AGAINST: 679,510 SHARES TOTAL: 231,152,090 SHARES WITHHELD: 3,080 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 3(i)

C&C Group plc | Slide 37 C&C Group plc | Slide 37

Resolution 3(i)

To re-elect Geoffrey Hemphill

FOR: 230,482,652 SHARES AGAINST: 669,438 SHARES TOTAL: 231,152,090 SHARES WITHHELD: 3,080 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 3(j)

C&C Group plc | Slide 39 C&C Group plc | Slide 39

Resolution 3(j)

To re-elect Richard Holroyd

FOR: 227,364,362 SHARES AGAINST: 3,787,728 SHARES TOTAL: 231,152,090 SHARES WITHHELD: 3,080 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 4

C&C Group plc | Slide 41 C&C Group plc | Slide 41

Resolution 4

To authorise the Directors to fix the auditors’ remuneration

FOR: 231,137,443 SHARES AGAINST: 15,887 SHARES TOTAL: 1,840 SHARES WITHHELD: 231,153,330 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 5(a)

C&C Group plc | Slide 43 C&C Group plc | Slide 43

Resolution 5 (a)

To receive and consider the Report of the Remuneration Committee on Directors’ Remuneration for the year ended 28 February 2018

FOR: 230,075,635 SHARES AGAINST: 521,561 SHARES TOTAL: 230,597,196 SHARES WITHHELD: 557,974 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 5(b)

C&C Group plc | Slide 45 C&C Group plc | Slide 45

Resolution 5(b)

To receive and consider the Directors’ Remuneration Policy

FOR: 230,550,915 SHARES AGAINST: 46,281 SHARES TOTAL: 230,597,196 SHARES WITHHELD: 557,974 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 6

C&C Group plc | Slide 47 C&C Group plc | Slide 47

Resolution 6

To authorise the allotment of shares

FOR: 180,202,059 SHARES AGAINST: 50,952,894 SHARES TOTAL: 231,154,953 SHARES WITHHELD: 217 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 7

C&C Group plc | Slide 49 C&C Group plc | Slide 49

Resolution 7 (Special Resolution)

To authorise the limited disapplication of statutory pre-emption rights

FOR: 211,157,269 SHARES AGAINST: 19,995,156 SHARES TOTAL: 231,152,425 SHARES WITHHELD: 2,745 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 8

C&C Group plc | Slide 51 C&C Group plc | Slide 51

Resolution 8 (Special Resolution)

To authorise the additional 5% disapplication of pre-emption rights

FOR: 180,186,865 SHARES AGAINST: 50,960,495 SHARES TOTAL: 231,147,360 SHARES WITHHELD: 7,810 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 9

C&C Group plc | Slide 53 C&C Group plc | Slide 53

Resolution 9 (Special Resolution)

To authorise the purchase by the Company of its own shares

FOR: 230,388,281 SHARES AGAINST: 564,550 SHARES TOTAL: 230,952,831 SHARES WITHHELD: 202,339 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 10

C&C Group plc | Slide 55 C&C Group plc | Slide 55

Resolution 10 (Special Resolution)

To determine the price range at which Treasury Shares may be re-issued

• ff-market

FOR: 199,634,831 SHARES AGAINST: 31,514,446 SHARES TOTAL: 231,149,277 SHARES WITHHELD: 5,893 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution