Annual General Meeting 6 July 2017 Welcome & Introduction - - PowerPoint PPT Presentation

Annual General Meeting

6 July 2017

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

FY2017 | Business Review

Stephen Glancey CEO

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

FY2017 | Year of consolidation

1.

Returned three core brands (Bulmers, Tennent’s & Magners) to volume growth

2.

Continued growth in Premium and Export businesses

3.

Extended AB InBev partnership with long term distribution agreement in cider in the UK

4.

Completed rationalisation of production footprint and cost reduction programme

5.

Balance sheet and cash generation profile providing the firepower to invest in brands and flexibility to acquire assets or return capital

6.

Capital allocation through dividends, acquisitions and/or share buybacks driving shareholder returns

Delivering strategic priorities Building long term brand value

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

FY2017 | Performance Review

€95 million

Operating Profit

Flat year-on-year1

€559 million

Net Revenue

Down 6.9%1

1.55x

2

Net Debt to EBITDA

Strong balance sheet and flexibility

€58.3 million

Free cash flow (Pre exceptionals)

53% Conversion of EBITDA

€23.2 million

Share buyback in year €147 million share buyback over last 2 years3

5% growth

in final dividend to 9.37 cent per share

Supported by strong balance sheet & underlying cashflow

1.FY2016 comparative adjusted for constant currency (FY2016 translated at FY2017 F/X rates) and North America revenues to be on a like for like basis with the current financial year (as though the Pabst arrangement had also been in operation for the whole of FY2016).

• 2. Net Debt as at 28 February 2017 and EBITDA FY2017
• 3. Share buy-backs excl. stamp duty and commissions Jan 15 – Apr 17

+12%

Investment in DBM & new Founts

Core Brands1

€7.8 million

Negative FX Impact on Reported Op. Profit

7.6% drag on reported profits

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

Core Brand Investment | Bulmers

1. Brand Health Dipstick Average scores on 5 key questions 18-24 age group – September 2016 2. Company data: customer survey

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 7 C&C Group plc | Slide 7

Core Brand Investment | Tennent’s

13% 22%

2016 2017

Brand Advocacy1

'A brand I’d recommend’

Brand Salience1

'A brand I’ve heard good things about’

33% 36%

2016 2017

Brand Affinity2

‘Drank by people like me’

22% 27% 32% 44% 57%

Fosters Carling Stella Budweiser Tennent's

• 1. Key brand awareness relative – company data
• 2. Rolling MAT Feb ‘17 – Total Sample

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

Core Brand Investment | Magners

Brand Salience1

‘A brand I’ve heard good things about’

17% 29%

2016 2017

• 1. Company data: customer survey

Growing Market Share

% Share of Total Apple CIDER

6% 8%

Feb 2016 Feb 2017

Brand Recognition1

‘I like what the brand stands for’

26% 41%

2016 2017

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

Core Brand | Innovation

• Sweeter proposition
• Addressing Millennial

consumers

• Addressing growth market for

bottled Ales

• Premiumising the Tennent’s brand
• Having consolidated position

in Apple

• Addressing the growing market

for flavours

Video

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

C&C Group plc | Slide 12 C&C Group plc | Slide 12

Current trading | FY2018 Outlook | Brexit

Stable cash generative business with strong balance sheet underpin capital returns & strategic opportunities

Current trading

• Q1 FY2018 in-line with expectations

FY2018 Outlook

• Ireland – Year of investment to drive share
• Scotland – Continued momentum
• C&C Brands – ABI to continue volume momentum in

Magners; distribution synergies delayed to FY2019

• US – Limited visibility on category stability
• International – Focused growth trajectory

Brexit

• Brexit strategy underway; monitoring of political & economic implications
• Encouraged by political determination to minimise the potential economic impact

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

Formal Business

Brian Stewart Chairman

Resolution 1

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

Resolution 1

To consider the financial statements for the year ended 28 February 2017 and the reports of the Directors and the auditors thereon

FOR: 233,958,812 SHARES AGAINST: 1,665 SHARES TOTAL: 233,960,477 SHARES WITHHELD: 2,771 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 17 C&C Group plc | Slide 17

Resolution 2

To confirm and declare dividends

FOR: 233,959,340 SHARES AGAINST: 1,137 SHARES TOTAL: 233,960,477 SHARES WITHHELD: 2,771 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 19 C&C Group plc | Slide 19

Resolution 3(a)

To elect Jim Clerkin

FOR: 233,680,606 SHARES AGAINST: 274,876 SHARES TOTAL: 233,955,482 SHARES WITHHELD: 7,766 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 21 C&C Group plc | Slide 21

Resolution 3(b)

To elect Geoffrey Hemphill

FOR: 233,608,306 SHARES AGAINST: 347,176 SHARES TOTAL: 233,955,482 SHARES WITHHELD: 7,766 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)

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

Resolution 3(c)

To elect Andrea Pozzi

FOR: 233,151,263 SHARES AGAINST: 808,916 SHARES TOTAL: 233,960,179 SHARES WITHHELD: 3,069 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 25 C&C Group plc | Slide 25

Resolution 3(d)

To re-elect Sir Brian Stewart

FOR: 224,155,703 SHARES AGAINST: 9,805,407 SHARES TOTAL: 233,961,110 SHARES WITHHELD: 2,138 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 27 C&C Group plc | Slide 27

Resolution 3(e)

To re-elect Stephen Glancey

FOR: 233,132,680 SHARES AGAINST: 828,430 SHARES TOTAL: 233,961,110 SHARES WITHHELD: 2,138 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 29 C&C Group plc | Slide 29

Resolution 3(g)

To re-elect Joris Brams

FOR: 233,135,868 SHARES AGAINST: 825,242 SHARES TOTAL: 233,961,110 SHARES WITHHELD: 2,138 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 31 C&C Group plc | Slide 31

Resolution 3(h)

To re-elect Vincent Crowley

FOR: 233,249,870 SHARES AGAINST: 711,240 SHARES TOTAL: 233,961,110 SHARES WITHHELD: 2,138 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 33 C&C Group plc | Slide 33

Resolution 3(i)

To re-elect Emer Finnan

FOR: 232,944,544 SHARES AGAINST: 1,016,566 SHARES TOTAL: 233,961,110 SHARES WITHHELD: 2,138 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 35 C&C Group plc | Slide 35

Resolution 3(j)

To re-elect Stewart Gilliland

FOR: 232,923,787 SHARES AGAINST: 714,742 SHARES TOTAL: 233,638,529 SHARES WITHHELD: 324,719 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(k)

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

Resolution 3(k)

To re-elect Richard Holroyd

FOR: 216,278,999 SHARES AGAINST: 17,261,337 SHARES TOTAL: 233,540,336 SHARES WITHHELD: 422,912 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(l)

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

Resolution 3(l)

To re-elect Breege O’Donoghue

FOR: 215,916,251 SHARES AGAINST: 17,623,049 SHARES TOTAL: 233,539,300 SHARES WITHHELD: 423,948 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 approve the appointment of EY as auditors of the Company

FOR: 232,553,289 SHARES AGAINST: 1,406,365 SHARES TOTAL: 233,959,654 SHARES WITHHELD: 3,594 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

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

Resolution 5

To authorise the Directors to fix the auditors’ remuneration

FOR: 232,554,484 SHARES AGAINST: 1,404,380 SHARES TOTAL: 233,958,864 SHARES WITHHELD: 4,384 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 45 C&C Group plc | Slide 45

Resolution 6

To receive and consider the Report of the Remuneration Committee on Directors’ Remuneration for the year ended 28 February 2017

FOR: 232,922,403 SHARES AGAINST: 715,493 SHARES TOTAL: 233,637,896 SHARES WITHHELD: 325,352 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 47 C&C Group plc | Slide 47

Resolution 7

To authorise the allotment of shares

FOR: 200,546,680 SHARES AGAINST: 33,413,289 SHARES TOTAL: 233,959,969 SHARES WITHHELD: 3,279 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 49 C&C Group plc | Slide 49

Resolution 8 (Special Resolution)

To authorise the limited disapplication of statutory pre-emption rights

FOR: 200,532,968 SHARES AGAINST: 33,421,706 SHARES TOTAL: 233,954,674 SHARES WITHHELD: 8,574 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 51 C&C Group plc | Slide 51

Resolution 9 (Special Resolution)

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

FOR: 200,523,170 SHARES AGAINST: 33,431,504 SHARES TOTAL: 233,954,674 SHARES WITHHELD: 8,574 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 53 C&C Group plc | Slide 53

Resolution 10 (Special Resolution)

To authorise the purchase by the Company of its own shares

FOR: 233,336,395 SHARES AGAINST: 381,276 SHARES TOTAL: 233,717,671 SHARES WITHHELD: 245,577 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 11

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

Resolution 11 (Special Resolution)

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

FOR: 233,935,049 SHARES AGAINST: 24,768 SHARES TOTAL: 233,959,817 SHARES WITHHELD: 3,431 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.

Shareholders, Thank you for your attendance and continued support