Sales for the Fiscal Year 2016/ 17 ending 31 March 2017 19.04.17 - - PowerPoint PPT Presentation

Sales for the Fiscal Year 2016/ 17

ending 31 March 2017

19.04.17

Key Messages

• Solid

id F FY16 16-17 organ rganic s sal ales es gro growth performance (+4 (+4.7%), ), led by Group’s O s Own Brands s (+7 (+7.4%)

• Q4 (+0

(+0.9% in o

• rganic t

terms) s) held back by technical factors of around EUR13.5M (-5pp): ‒ the earlier timing of the CNY timing (EUR6M) ‒ The deconsolidation of Passoa (EUR2.5M) ‒ The end of the Champagne distribution contract (EUR5M) Adjusted for these factors, Q4’s s und underlying ng organ rganic gr growth w was as + +6% 6%.

• Supportive val

alue dep e deplet etion t tren rends ds in FY2016-17: ‒ Greater China: sizeable acceleration in consumption trends; Strong Mid-Autumn Festival and Chinese New Year ‒ US: Normalized growth after 2 very strong years ‒ Western Europe: broadly unchanged ‒ Russia: clear recovery ‒ Global Travel Retail: improving trends in H2

• FY16/17 ou
• utlook
• ok con
• nfirmed: on track to deliver positive organic Current Operating Profit growth

19.01.17 - 12 months sales ending 31 March 2017

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2016/17 Sales Analysis

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3 €m

FY FY 1 15/1 /16 Or Organi nic Cu Currency FY 1 16/ 6/17 1,05 050. 0.7 1, 1,094. 4.9 +4 +4.7%

• 0.

0.5% Repor ported grow

• wth: +

+4.2 .2%

Currency Impact on 2016/17 Sales

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4

Ne Negat ativ ive tran ransl slat atio ion curren rrency im impac pact : -5.8 mil illio ion eu euro ros

USD 2.4 JPN 1.7 HKD 0.5 AUD 0.4 PLN

• 0.2

GBP

• 4.5

CNY

• 6,8

Ma Main in ga gain ins Ma Main in losses

• sses

€m

Quarterly Organic Sales Growth

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5

FY 16/17: +4.7 .7% % (Group B Brands: + +7.4 .4%) %) FY15/1 /16: +0.3% 3% ( (Group up Br Brand nds: + +1.7%)

• 9.0

.0%

• 3.

3.2% 3. 3.2% 9.8 .8% 0. 0.0% 7. 7.4% 9.0 .0% 0,9 0,9%

• 9.1

.1%

• 1.3

.3% 5.6 5.6% 10. 0.7%

• 0.

0.6% 9.5 .5% 16.2% 2, 2,1% 1%

• 15%
• 10%
• 5%

0% 5% 10% 15% 20% Q1 1 1 15/16 16 Q2 15 15/16 16 Q3 15 15/16 16 Q4 15 15/16 16 Q1 16 16/17 17 Q2 16 16/17 17 Q3 Q3 1 16/ 6/17 Q4 Q4 1 16/ 6/17 Org rgan anic sale sales g s gro rowth -

• - Gro

roup up Org rgan anic sale sales g s gro rowth -

• - RC B

Bran ands 12M t tren rend H1: + : +4.1 4.1% (Gr.

• r. B

Br.

• r. : +

: +5.1 .1%) H2: +5 +5.3% 3% (Gr.

• r. B

Br.

• r. : +

: +9.5 .5%)

2016/17 Organic Growth by Region

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6

• 5%

0% 5% 10%

+9.4%

• 2.7%

7% +7.5% 5% +4.7% Ame Americas Asia ia P Pacif ific ic EMEA Group up

2016/17 Organic Trends by Region (1)

Asia sia-Paci acific s c sal ales up 7 7.5 .5% i in 20 2016 16/17, le led by by recov covery in in Gre Great ater China

• Greater China back to solid growth:
• Sales up solid double-digits in 2016-17
• Strong Chinese New Year performance (value depletions up strong double-digits)
• 12M depletions up high single digits in volume and solid double digits in value, led by CLUB and QSS
• Australia: Strong improvement in sales and depletion trends as a result of the change in route-to-market
• Japan negatively impacted by strong yen and price increases
• Travel Retail in decline in FY, despite improving trends in H2
• Relaunch of classic VSOP and XO and increased spend of Chinese travellers in H2

19.01.17 - 12 months sales ending 31 March 2017

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Ameri ericas as sa sale les u s up 9.4% .4% in 2 2016/17

• US growth normalizing (at solid levels) after 2 very strong years:
• Group Brands’ value depletions : +11.9% over 3M, +7.9% over 6M, +10.5% over 12M
• Accelerating trends in Canada and LatAm
• Good performance of Travel Retail

2016/17 Organic Trends by Region (2)

Euro urope, e, Middle E e Eas ast & t & Africa ica sa sale les s do down 2. 2.7% in 20 2016/ 6/17, du due to tech chnica ical fac actors rs

• Region penalized by technical factors (-6pp hit):
• The end of the distribution contract with Piper & Charles Heidsieck (EUR17M) and the deconsolidation of Passoa from

December 1st 2016 (EUR3.5M).

• Adjusted for these technical factors, EMEA would have been up +3%
• Western Europe: double-digit sales decline in FY, due to technical factors (Passoa, Champagne)
• Solid depletion trends in the UK and in France, but further weakness in Belgium due to duty increase
• Central Europe: double-digit growth in FY
• Solid momentum led by Czech Republic and Slovakia
• Poland and Greece back to healthy growth
• Russia/CIS: solid double-digit growth in FY
• Sales and value depletion trends both growing double-digits, led by Louis XIII, Cointreau, Metaxa and St-Rémy
• Travel Retail: Good FY performance, led by double-digit growth at the Group’s Own Brands
• Africa held back by Nigeria (macro-economic factors); South Africa strong both in sell-in and

sell-out

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2016/17 Organic Growth by Product Division

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• 20%
• 15%
• 10%
• 5%

0% 5% 10% 15%

+10. 0.0% 0% +1 +1.3% 3% +7. 7.4%

• 14.

4.2% 2% +4.7% Rémy Ma Martin in Lique ueur urs & & Spir irit its Group up Br Brand nds Part rtner r Br Brand nds Tot

• tal

al Group up

Rémy Martin (+10.0% organic growth in FY)

As Asia-Paci cifi fic

• Strong FY performance, led by double-digit growth in Greater China and in Singapore, as well as improving

trends in Global Travel Retail (in H2)

• Greater China: depletions up high single digits in volume, solid double digits in value

Ame Americas

• Strong FY performance, led by double-digit growth in the US and in Canada
• US depletions : normalized volume trends (high single digits) after 2 years of very strong growth
• Solid depletion trends of 1738 and Louis XIII drove pric

price/mix ix g gain ains o

• f 3-4pp

pp in the 12M period to March

Eur urope, Middl Middle East & & Afr frica ca

• Sales slightly positive in FY, led by Russia, the UK, South Africa and Travel Retail

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3 3 months nths 6 6 months nths 12 12 months nths US C S Cogna nac/Br Brand ndy Mar arket et 15.3% 8.5% 9.2% Rémy Ma Martin in 10.1% 6.5% 9.0% Volume ume dep eplet etion

• n tren

ends t s to

• March

ch 2017 17

Source: NABCA/Discus

Rémy Martin: Marketing Initiatives

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LOU OUIS IS XIII III Pop-Up p Boutiq ique e at t Harro Harrods s in in L London

Liqueurs & Spirits (+1.3% organic growth in FY)

Liqueurs ueurs & & S Spiri rits ts poste ted 1. 1.3% 3% org rgan anic gro rowth wth in F FY, Y, he held bac ack b by th the e decon

• nsol
• lidation
• n of
• f Pas

assoa a (E (EUR6,3M o

• r a

r a 3pp hi pp hit)

Coi

• intreau

eau

• Good sales growth, mainly driven by the US and growth relays (Greater China and Russia)
• Solid Cointreau depletions in France (+5% 12M ending February)
• Slower US volume depletions trends; But still gaining share in a depressed category
• US value depletions benefited from a price

ce/mix ix ga gain in o

• f 1-2pp in the 12M period to March

Met etax axa: Strong sell-in and depletion performance in FY, led by ongoing strength in Central Europe, an upturn in Russia/CIS, and healthy growth in Greece and Germany. Successful relaunch of Metaxa “12 Stars”.

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3 3 months nths 6 m months nths 12 m 2 mon

• nths

Tot

• tal

al U US Cordia dials Mar arket et

• 19.1%
• 17.4%
• 15.9%

Coi

• intreau

eau 1.8% 1.1% 3.4% Volume ume dep eplet etion

• n tren

ends t s to

• Ma
• Mar. 2017

17

Source: NABCA/Discus

Liqueurs & Spirits (+1.3% organic growth in FY)

Mount unt Ga Gay

• Slight decline in FY sales, as declining volumes (mainly resulting from the upgrading strategy of the brand) are

not fully offset by positive mix gains

• International roll-out of Black Barrel and XO: solid growth in EMEA (UK, Germany, Travel Retail)
• Volatility of US volume depletions reflects the gradual de-emphasis on entry-price Eclipse
• US value depletions enjoyed a pri

rice/ e/mix gai gain o

• f arou
• und 2

2pp pp in the 12M period ending March Pro rogres gressive e Heb ebri ridean dean Disti stillers: s: Double-digit sales growth led by key markets (Europe, US, and Travel Retail) St St-Ré Rémy: Strength in St-Rémy XO (in particular in Canada, Australia and Russia) offset by a strong decline in low- end quality volumes in Nigeria

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3 3 months nths 6 6 months nths 12 12 months nths Tot

• tal

al U US Rum um Mar arket et

• 10.0%
• 1.4%
• 2.6%

Mo Mount Ga Gay 6.0%

• 0.2%

0.5% Volume ume dep eplet etion

• n tren

ends t s to

• Mar. 2017

17

Source: NABCA/Discus

Liqueurs & Spirits: Marketing Initiatives

The e ac acquisit isitio ions s of Domain aine e des es Hau Hautes es Glac aces es an and West estlan and

Partner Brands (-14.2% organic decline in FY)

• Sales decline reflects the end of the distribution contract for Piper Heidsieck and

Charles Heidsieck in EMEA and Travel Retail (EUR20M net loss in 12M or a 16pp hit)

• Other Third-Party spirits grew mid-single digits in FY, led by solid growth in EMEA and

Travel Retail.

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2016/17 Outlook Confirmed

• 2016/17 organic sales performance in-line with Group’s expectations
• Maintains guidance of delivering positive growth in Current Operating Profit, at

constant exchange rate and scope, for the financial year 2016/17

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19.04.17

Questions & Answers