05 July 2018
Welcome & Introduction Brian Stewart Chairman C&C Group plc | Slide 2 C&C Group plc | Slide 2
FY2018 | Business Review Stephen Glancey CEO C&C Group plc | Slide 3 C&C Group plc | Slide 3
Strategic & Operational Highlights Year of stabilisation & strategic investments ➢ 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 Stable base to capitalise on opportunities C&C Group plc | Slide 4 C&C Group plc | Slide 4
FY2018 | Performance Overview €548.2 million €86.1 million Net Revenues Operating Profit, before €1.2m of Down 4.9% associate income (mainly Admiral) Down 7.0% €241.5 million 15.7% UK & Ireland Branded Net Revenues Operating Margin Up 0.8% Down 40bps 2.37x €70.8 million Net Debt to EBITDA Free cash flow (Pre-exceptionals ) Strong balance sheet & pension schemes in 70.5% Conversion of EBITDA surplus €53 million €33 million €9.37c Investment in Craft Brands & Admiral Taverns Share buybacks in FY2018 Final Dividend Supported by strong balance sheet & €163 million share buybacks Full Year Dividend of €14.58c (+1.7% YoY ) underlying cashflow over last 3 years 1 1. Share buy-backs excl. stamp duty and commissions Jan15-Apr18 C&C Group plc | Slide 5 C&C Group plc | Slide 5
Tennent’s investment…. Investment • • > 5000 installations Tennent’s sponsors Scottish rugby Font roll out Sponsorship programme • • 40% growth in social media Premiumisation and pack engagement re-engineering at key price Social media “MUP Ready” points C&C Group plc | Slide 6 C&C Group plc | Slide 6
…leading to strong Tennent’s performance Performance Brand Strength Revenue Growth 1 +5.3% 14 YouGov Purchase Intent - Scotland 12 €80.8 €76.7 10 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 ….growing rate performance ….plus revenue growth FY2017 FY2018 1. Constant currency C&C Group plc | Slide 7 C&C Group plc | Slide 7
Bulmers brand investment… C&C Group plc | Slide 8 C&C Group plc | Slide 8
…strengthening brand scores Brand Salience 2 Brand Affinity 2 Brand Health Scores 1 'A brand I’ve heard good things about’ ‘Popular with younger Drinkers’ Top 3 LAD brands in ROI 42 54% 40% 46% 32% 25 19 2015 2017 2015 2017 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 C&C Group plc | Slide 9 C&C Group plc | Slide 9
Magners & GB Good 1 st year of AB InBev cider distribution agreement • GB cider volumes +3.6% • Slow start, but momentum built through year • Magners performed well in range reviews with major retailers +19% • Extended distribution reach, especially in convenience Other cider brands and wholesale -18% - Magners is +12% in Nielsen MATs to Feb18 for Impulse • Good performance by K Cider - Enhanced distribution, particularly in convenience +0.3% ABI: Flat Scotland IFT: +3.2% • Good contribution from Orchard Pig 1 acquisition FY2017 FY2018 1 Orchard Pig acquired April 2017, contributing 33kHL to FY18. Sales, marketing and distribution retained by C&C Group during FY18, but will pass to AB InBev during FY19. C&C Group plc | Slide 10 C&C Group plc | Slide 10
Growing Super-Premium & Craft Portfolio FY2019 Potential FY2018 Highlights Current Portfolio ✓ High margin Innovation ✓ Launch of Heverlee in off-trade ✓ High ROIC (UK & Ireland) ✓ UK-wide opportunity ✓ UK-wide distribution In house innovation & brand development Volume Growth ✓ Menabrea +55% in GB Organic growth Agency ✓ Rights to San Miguel in Ireland +41.3% 1 ✓ Secured rights to Tsingtao (UK & ROI) Exclusive UK and/or ROI distribution of quality imports ✓ Acquisition of Orchard Pig 107.6 kHL Craft 2 ✓ Further investment in 5 Lamps 52.5 kHL ✓ 5 Lamps now in 303 pubs in Dublin Partnerships with Local craft FY2017 FY2018 1. In RoI only 2. Acquired May 2017; contributed 33 kHL C&C Group plc | Slide 11 C&C Group plc | Slide 11
Video
Strengthened route-to-market in the UK • 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 • 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 13 C&C Group plc | Slide 13
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 14 C&C Group plc | Slide 14
Formal Business Brian Stewart Chairman C&C Group plc | Slide 15 C&C Group plc | Slide 15
Resolution 1
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 C&C Group plc | Slide 17 C&C Group plc | Slide 17
Resolution 2
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 C&C Group plc | Slide 19 C&C Group plc | Slide 19
Resolution 3(a)
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 C&C Group plc | Slide 21 C&C Group plc | Slide 21
Resolution 3(b)
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 C&C Group plc | Slide 23 C&C Group plc | Slide 23
Resolution 3(c)
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 C&C Group plc | Slide 25 C&C Group plc | Slide 25
Resolution 3(d)
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 C&C Group plc | Slide 27 C&C Group plc | Slide 27
Resolution 3(e)
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 C&C Group plc | Slide 29 C&C Group plc | Slide 29
Resolution 3(f)
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 C&C Group plc | Slide 31 C&C Group plc | Slide 31
Resolution 3(g)
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