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 organic 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 outlook ook con onfirmed: on track to deliver positive organic Current Operating Profit growth 2 19.01.17 - 12 months sales ending 31 March 2017

2016/17 Sales Analysis €m FY FY 1 15/1 /16 Or Organi nic Cu Currency FY 1 16/ 6/17 Repor ported grow owth: + +4.2 .2% 1, 1,094. 4.9 1,05 050. 0.7 -0. 0.5% +4 +4.7% 3 19.01.17 - 12 months sales ending 31 March 2017

Currency Impact on 2016/17 Sales Ne Negat ativ ive tran ransl slat atio ion curren rrency im impac pact : -5.8 mil illio ion eu euro ros Ma Main in ga gain ins Main Ma in losses osses €m USD 2.4 JPN 1.7 HKD AUD 0.5 0.4 PLN -0.2 GBP -4.5 CNY -6,8 4 19.01.17 - 12 months sales ending 31 March 2017

Quarterly Organic Sales Growth FY15/1 /16: +0.3% 3% ( (Group up Br Brand nds: + +1.7%) FY 16/17: +4.7 .7% % (Group B Brands: + +7.4 .4%) %) 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 20% 16.2% 15% 10. 0.7% 9.8 .8% 9.5 .5% 9.0 .0% 10% 7.4% 7. 5.6 5.6% 5% 3.2% 3. 2,1% 2, 1% 0,9 0,9% 0.0% 0. 0% -0. 0.6% -1.3 .3% -3. 3.2% -5% H2: +5 +5.3% 3% H1: + : +4.1 4.1% (Gr. r. B Br. r. : + : +9.5 .5%) (Gr. r. B Br. r. : + : +5.1 .1%) -10% -9.0 .0% -9.1 .1% -15% 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 5 19.01.17 - 12 months sales ending 31 March 2017

2016/17 Organic Growth by Region Ame Americas Asia ia P Pacif ific ic EMEA Group up +9.4% 10% +7.5% 5% +4.7% 5% 0% -2.7% 7% -5% 6 19.01.17 - 12 months sales ending 31 March 2017

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 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 7 19.01.17 - 12 months sales ending 31 March 2017

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 8 19.01.17 - 12 months sales ending 31 March 2017

2016/17 Organic Growth by Product Division Lique ueur urs & & Group up Part rtner r Tot otal al Rémy Ma Martin in Spir irit its Brand Br nds Brand Br nds Group up 15% +10. 0.0% 0% +7. 7.4% 10% +4.7% 5% +1.3% +1 3% 0% -5% -10% -15% -14. 4.2% 2% -20% 9 19.01.17 - 12 months sales ending 31 March 2017

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 of 3-4pp pp in the 12M period to March Volume ume dep eplet etion on tren ends t s to o March ch 2017 17 3 months 3 nths 6 6 months nths 12 12 months nths US C S Cogna nac/Br Brand ndy Mar arket et 8.5% 9.2% 15.3% Rémy Ma Martin in 10.1% 6.5% 9.0% Source: NABCA/Discus Eur urope, Middl Middle East & & Afr frica ca  Sales slightly positive in FY, led by Russia, the UK, South Africa and Travel Retail 10 19.01.17 - 12 months sales ending 31 March 2017

Rémy Martin: Marketing Initiatives LOU OUIS IS XIII III Pop-Up p Boutiq ique e at t Harro Harrods s in in L London 11 19.01.17 - 12 months sales ending 31 March 2017

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 onsol olidation on of of Pas assoa a (E (EUR6,3M o or a r a 3pp hi pp hit) Coi ointreau 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 of 1-2pp in the 12M period to March Volume ume dep eplet etion on tren ends t s to o Ma Mar. 2017 17 3 3 months nths 6 m months nths 12 m 2 mon onths Tot otal al U US Cordia dials Mar arket et -19.1% -17.4% -15.9% Coi ointreau eau 1.8% 3.4% 1.1% Source: NABCA/Discus 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”. 12 19.01.17 - 12 months sales ending 31 March 2017

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 of arou ound 2 2pp pp in the 12M period ending March Volume ume dep eplet etion on tren ends t s to o Mar. 2017 17 3 3 months nths 6 months 6 nths 12 12 months nths -10.0% Tot otal al U US Rum um Mar arket et -1.4% -2.6% -0.2% Mo Mount Ga Gay 6.0% 0.5% Source: NABCA/Discus 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 13 19.01.17 - 12 months sales ending 31 March 2017

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. 15 19.01.17 - 12 months sales ending 31 March 2017