[PPT] - PRELIMINARY RESULTS YEAR ENDED 31 st DECEMBER 2016 Tim Warrillow PowerPoint Presentation

SLIDE 1

PRELIMINARY RESULTS

YEAR ENDED 31st DECEMBER 2016 Tim Warrillow – Co-founder and CEO Andrew Branchflower – Finance Director

SLIDE 2

HIGHLIGHTS Momentum continued from 2015, exceptional growth in 2016

£m FY 16 FY 15 Growth Revenue

102.2 59.3 73%

Gross profit

56.4 30.9 83%

Gross margin

55.2% 52.1%

EBITDA

35.8 18.2 97%

EBITDA margin

35.1% 30.7%

Continuing to deliver to strategy
Strong growth across the regions, with continued

exceptional growth in the UK

Improved gross and EBITDA margins through
perational efficiencies and forex upside
Continuing to extend our global category- leading

position against our competitive set

Spirit premiumisation and mixability trend is

gathering pace Net revenue and growth by region

Growth 118% Growth 55% Growth 39% Growth 88%

SLIDE 3

REGIONAL HIGHLIGHTS Regional highlights (i)

44% of total revenue generated in UK, growth of 118%
Strong on-trade growth, grew to 22% value share of mixer

mixer category

150ml can is performing very strongly

UK

30% of total revenue generated in Continental Europe
Growth of 39% across region aided by strengthening Euro;

24% growth on a like for like basis

Lapping strong comparatives from FY15 when a number of

significant new retail listings were won

Strong sales growth in important Western European

countries, including Italy, Germany and Austria, driven by the premium gin and tonic trend continuing to gain momentum across the region

Continental Europe

SLIDE 4

REGIONAL HIGHLIGHTS Regional highlights (ii)

21% of total revenue generated in USA
Growth of 55%, aided by strong USD; like for like growth
f 36%
Continued strong Ginger Beer and Tonic flavours growth
Drove 68% of growth in US Tonic category at retail from

a value share of 5%

New retail listings, largely landing later in the year

USA

5% of total revenue generated in RoW region
Growth of 88%
Key territories remain Australia and Canada, both of

which grew by > 100% in 2016

Potential for growth in medium term but not expected to

be a significant driver of growth in the short term

RoW

SLIDE 5

FINANCIAL REVIEW Income statement (i) – Overview

Revenue of £102.2m
Growth of 73% on FY15
Gross profit margin of 55.2%
Vs 52.1% in FY15
EBITDA of £18.2m at a margin of

35.1%

Vs 30.7% in FY15

£m FY16 FY15 Growth Revenue

102.2 59.3 73%

Gross profit

56.4 30.9 83%

Gross margin 55.2% 52.1% EBITDA

35.8 18.2 97%

EBITDA margin 35.1% 30.7%

Net revenue split by region – FY16

UK 44% USA 21% Continental Europe 30% RoW 5%

SLIDE 6

FINANCIAL REVIEW Income statement (ii) –Forex : like for like analysis

£m Reported FY 15 Like-for-Like FY 16 Growth Reported FY 16 Growth Revenue 59.3 96.3 62% 102.2 73% Gross profit 30.9 51.5 67% 56.4 83%

Gross margin 52.1% 53.5% 55.2%

EBITDA 18.2 33.4 84% 35.8 97%

EBITDA margin 30.7% 34.7% 35.1%

Revenue of £102.2m
FX upside as Euro and Dollar each

strengthened by 13% on average across FY16

Additional £5.9m of revenue generated due

to FX upside, without which growth would have been 62%

Gross profit margin of 55.2%
On a like for like basis, FY16 GP% is 53.5%,

vs 52.1% in FY15, improvement driven by product cost and logistic efficiencies.

EBITDA of £35.8m at a margin of 35.1%
On a like-for-like basis EBITDA margin in FY16

is 34.7%

On a like-for-like basis, FY16 underlying
perating expenses were 18.8% of revenue, and

in H2 16 specifically these were 16.9% of revenue, illustrating the extent of the

perational gearing in latter stages of the year
Reported operating expenses include a £1.6m FX

expense related to hedging policy

SLIDE 7

FINANCIAL REVIEW Income statement (iii) – Other costs

Finance expenses
Bank debt refinanced in Jan16 resulting in

reduced finance expense going forward

LTIP Charges
It is expected that these will build going forward
EPS and dividend
Normalised EPS of 24.31 pence in FY16, growth
f 101% on FY15
Final dividend of 4.71 pence per share, bringing

total dividend for FY16 to 6.25 pence per share, increase of 103% on FY15 £m Reported FY 16 FY 15 EBITDA

35.8 18.2

Depreciation

(0.2) (0.1)

Amortisation

(0.7) (0.7)

LTIP charges

(0.5) <(0.1)

Operating profit

34.4 17.3

Finance expenses

(0.1) (0.5)

Profit before Tax

34.3 16.8

Tax

(6.8) (3.5)

Profit after Tax

27.5 13.3

Normalised EPS (pence)

24.31 12.10

Total dividend (pence)

6.25 3.08

SLIDE 8

FINANCIAL REVIEW Balance Sheet

Operating Cash flow conversion of 72%
Consistent Operating cash flow conversion year on

year

Working capital profile consistent year on year at

23% of revenue £m FY16 FY15 EBITDA

35.8 18.2

Working Capital mvmt

(10.1) (5.3)

Operating Cash flow

25.7 12.9

Conversion 72% 71% Tax (5.1) (2.5) Capital expenditure (0.8) (0.4) Bank loan interest and repayment (0.1) (0.7) Dividends paid (4.4) (1.2)

Net Cash flow

15.3 8.1

£m FY16 FY15 PPE 1.1 0.6 Intangibles 43.1 43.9 Stock 10.5 6.4 Receivables 30.4 16.8 Derivatives (0.9) (0.3) Cash 33.0 17.6 Creditors (16.1) (9.3) Corporation tax (3.8) (1.6) Gross debt (6.1) (6.1) Deferred tax (2.2) (2.6) Net Assets

89.0 65.4

Net Cash

26.9 11.6

Cash flow

Net cash of £26.9m
Cash of £33.0m offset by £6.1m of gross

debt

SLIDE 9

Strong proof that the mixer category is unusually susceptible

to high premium penetration

One of the fastest growing carbonated soft drinks categories
Strengthening premiumisation and mixability trends

Capitalising on market trends

STRATEGIC CONSIDERATIONS

EY Study 2014 UK 2014 UK 2016 Belgium 2016 Predicted 16.5% mixer category premium penetration at maturity (£1.6bn) 5% premium

UK mixer category at retail

26% premium

UK mixer category at retail

46% premium

Belgium mixer category at retail

16.5% 5% 26% 46%

SLIDE 10

STRATEGIC CONSIDERATIONS

New bespoke embossed bottle
Aromatic Tonic launch in June16
Launch of Clementine Tonic with Sergio Herman in

Belgium

Launch Elderflower and Med Tonic 150ml cans in UK
Dark spirits strategy

New product development

On-going review of international distribution partners
Primary bottling partner invested in new site to double

capacity

Flexibility in model – bottling/canning across four locations

in UK and Europe

Currently reviewing international bottling opportunities,

particularly in Europe

Outsourced business model

SLIDE 11

SUMMARY & OUTLOOK

Continued strong performance driven by implementation of core strategy
Revenue & EBITDA growth is underpinned by robust margins, both on a

reported and constant currency basis

Momentum in all four main regions continues
Significant growth opportunities remain in both On & Off Trade and across

flavours and formats

Board confident of outlook for 2017 and beyond

SLIDE 12

APPENDIX

Introduction
Key strengths

SLIDE 13

INTRODUCTION TO FEVER-TREE

Launched by Charles Rolls and Tim Warrillow in

2005

Simple premise:
A significant and long term growth in premium

spirits

Not matched by any premium offering in

mixers category

Fever-Tree was launched at ideal moment to

provide a quality mixer range to fill the vacuum

The world’s leading premium mixer brand with

200 million bottles and 27 million cans sold in 2016

Now in over 55 countries worldwide, with 56% of

sales overseas

“No brand commands its category like Fever-Tree. Its grip on the world’s best bars has only tightened since last year”

Drinks International 2016 Brands Report

SLIDE 14

KEY STRENGTHS

First mover advantage
Leading premium mixer brand around

the world Market leading brand with international reach

Ingredients, taste, packaging and story
Acclaimed product proposition

Clearly differentiated premium product

Scalable outsourced business model
Strong founder-led management team

Proven business model and management team

Global mixer market in early stages of

premiumisation

Potential addressable market of approx

£1.6bn RSV (EY, 2014) Significant growth

pportunities
Higher cash and % margin for the trade