H1 FY2018 Presentation - C&C Group

H1 FY2018 Presentation - C&C Group

FY2018 Half-Year Results 26 October, 2017 Disclaimer This presentation has been prepared solely in connection with the financial results of C&C Grou...

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FY2018 Half-Year Results 26 October, 2017

Disclaimer This presentation has been prepared solely in connection with the financial results of C&C Group plc (the "Company") for the period ended 31 August, 2017 and should be read in conjunction with the announcement of the financial results of the Company for the period ended 31 August, 2017, released 26 October, 2017 (the “H1’18 Interim Results Announcement”). For the purposes of this notice, the presentation that follows shall mean and include the slides that follow, the oral presentation of the slides by the Company, the question-and-answer session that follows that oral presentation, hard and electronic copies of this document and any materials distributed at, or in connection with, that presentation. This presentation is not intended to and does not constitute or form part of any offer, or invitation, or solicitation of any offer to issue, underwrite, subscribe for, or otherwise acquire or dispose of any shares or other securities of the Company in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The presentation contains forward-looking statements, including statements about the Company's intentions, beliefs and expectations. These statements are based on the Company's current plans, estimates and projections, as well as the Company's expectations of external conditions and events. Forward-looking statements involve inherent risks and uncertainties, are based on certain assumptions and speak only as of the date they are made. The Company undertakes no duty to and will not necessarily update any such statements in light of new information or future events, except to the extent required by any applicable law or regulation. Recipients of this presentation are therefore cautioned that a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements.

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. Your attention is drawn to the ‘Principal Risks and Uncertainties’ set out on page 16 of the Company’s FY2018 Interim Results Announcement. The risks described, however, are not exhaustive and there may be other risks which may have an adverse effect on the business, financial condition, results or future prospects of the Company. Bulmers Ltd of Clonmel, Ireland, a company within the C&C Group, owns the trade mark BULMERS® in the Republic of Ireland. Bulmers Ltd is not connected with HP Bulmer Ltd of Hereford, UK. BULMERS ® Original Vintage Cider produced by Bulmers Ltd of Clonmel, Ireland is sold outside the Republic of Ireland under the name MAGNERS® Original Irish Cider. For further information see www.candcgroupplc.com

C&C Group plc | Slide 2

H1 FY2018 | Performance Overview

€273.1 million

€50.5 million

Net Revenues Down 3.7% underlying1

Operating Profit Up 0.4% underlying1

€152 million

+40bps

Branded Net Revenues Down 2.8%2

Improvement in operating margin to 18.5%

€75.4 million Free cash flow (Pre exceptionals) 131% Conversion of EBITDA

1. 2. 3. 4.

2

3

1.65x

Net Debt to EBITDA Strong balance sheet & flexibility

5% growth

€30.6 million

interim dividend to 5.21 cent per share Supported by strong balance sheet & underlying cashflow

Share buyback in H1’18 €160.4 million share buyback over last 3.5 years4

Underlying performance H1 FY’17 comparative adjusted for (i) constant currency (H1 FY’17 translated at H1’18 F/X rates revenues €14.1m; operating profit €2.0m) and (ii) the impact of certain AB InBev beer volumes in Ireland in the comparative period which transferred to direct supply under the terms of the revised distribution agreements with AB InBev. (H1 ’17 revenues €9.4m; operating profit €2.8m) H1 FY’17 comparative adjusted for constant currency (H1 FY’17 translated at H1’18 F/X rates revenues €14.1m; operating profit €2.0m) Net Debt as at 31 August 2017 and LTM EBITDA as at 31 August 2017 C&C Group plc | Slide 3 Share buybacks FY15-FY18 YTD

Strategic & Operational Highlights Delivering strategic & operational priorities 1) Solid growth in Tennent’s from branded and wholesale businesses 2) Smooth transition of cider portfolio to AB InBev – momentum building 3) Investment in Ireland delivering growth in Off-trade; remains highly competitive in the On-trade 4) Strong organic growth in Super-Premium & Craft portfolios; acquisition of Orchard Pig 5) Strengthened route to market access in the UK 6) Continued growth in Export 7) Margin improvement driven by improving business mix, cost control & operational efficiency

Prepared for ongoing challenges & opportunities C&C Group plc | Slide 4

H1 FY2018 FINANCIAL REVIEW

Summary Financials Year-on-year performance (constant currency)

H1’18

H1’171

% change

Group volumes (kHL) - of which branded

2,208 1,531

2,508 1,562

(12.0%) (2.0%)

Group net sales revenues (€’m) - of which branded

273.1 152.3

292.9 156.7

(6.8%) (2.8%)

Operating profits (€’m) - operating margin

50.5 18.5%

53.1 18.1%

(4.9%) +40bps

39.8

42.2

(5.7%)

309,551

315,903

(2.0%)

Adjusted fully diluted EPS

12.9

13.4

(3.7%)

Exceptional items (pre-tax) (€’m)

0.7

1.1

n.m.

Profit after tax (pre-exceptionals) (€’m)

Weighted average number of shares, incl. options (diluted)

1. H1’17 comparative adjusted for constant currency (FY2017 translated at FY2018 F/X rates). C&C Group plc | Slide 6

Volume kHL 2600

2,508 2500

Branded volumes -2.0%

2400 (123) 2,298

2300

+25 1

(87)

(6) (34)

(16)

(8) 2,208

2200

(51)

2100

2000

* Includes Wines, NABs and on-going own label and contract manufacturing 1. Benefits from 17.5 kHL of Orchard Pig volumes acquired in the period

C&C Group plc | Slide 7

Net Revenue €m 325

307.0 Branded revenues -2.8%

300

(14.1)

275

1

279.9

(9.4)

+3.6

(3.6) (4.8)

(0.9)

(2.3)

273.1 (1.2)

(1.2)

250

225

* Includes Wines, NABs and on-going own label and contract manufacturing 1. Benefits from €2.2m of Orchard Pig revenues acquired in the period

C&C Group plc | Slide 8

€m 140

+ 3.0% 130

-5.5%

• Lower volumes in period of transition, but momentum building • NSV rate deflation –5.3% reflecting distribution margin and mix • Can (60%) v bottle mix trend has continued (FY17: 52%)

-10.2%

1

129

124

120

• Volumes flat on a global basis, but outperforming in Scotland • NSV rate inflation +3.3%

110

100 H1'17 Core brands NSV

Tennent's volume

Tennent's price/mix

Bulmers volume

1. H1’17 core brands revenue (globally) adjusted for constant currency

Bulmers price/mix

Magners volume

Magners price/mix

H1'18 Core brands NSV

• On-trade volume losses, only partially off-set by growth in off-trade channel • Pricing environment remains positive • NSV rate deflation -0.5%, reflecting channel mix shift from draught to small pack off-trade

C&C Group plc | Slide 9

Operating Profit (before exceptionals) €m

55

55.1

(2.0)

+1.6

+0.1

50.3 50

(0.7)

(2.8)

50.5

1

(0.1)

(0.7)

45

40

1. Benefits from €0.3m of Orchard Pig trading profit acquired in the period, off-set by the negative profit impact of €0.8m of lost own label contracts as a results of Shepton closure C&C Group plc | Slide 10

Operating Margin Margin Drivers •

18.5%

Positive

+40bps1

19.0%



18.5%

Business mix - Brand revenues

-2.8%

- Other revenues

-11.3%

Cost savings - AB InBev related €2.1m - Distribution efficiencies

18.1%1



18.0%

Channel and pack mix

Negative

- Bulmers (Off/On-trade)

17.5%

- Magners (Glass/Can)



AB InBev pricing impact

17.0%

H1 FY'17

1.

H1 FY'18

H1 FY’17 comparative adjusted for constant currency (H1 FY’17 translated at H1’18 F/X rates revenues €14.1m; operating profit €2.0m)

C&C Group plc | Slide 11

Update on AB InBev | Short-term impacts Impacts from revised ABI distribution deal H1’18 vs H1’17 (constant currency adjusted) Ireland Loss of direct supply accounts Cost savings

GB Increased contract manufacturing Distribution margin on C&C cider2 Cost savings (England & Wales)

Group

1. 2.

Volume (kHL)

NSV1 (€’m)

EBIT1 (€’m)

(123) (123) -

(9.4) (9.4) -

(2.2) (2.8) 0.6

-

(2.1) (2.1) -

0.1 0.4 (1.8) 1.5

(123)

(11.5)

(2.1)

H1 FY’17 comparative adjusted for constant currency (H1 FY’17 translated at H1 FY’18 F/X rates) Revenue and margin foregone based on H1 FY’18 volumes at H1 FY’17 NSV/HL and GP/HL

Comments

Headcount savings given reduced AB InBev activity in Ireland

Some delays on new SKUs, catch-up expected in H2 AB InBev distribution margin Cost synergies in sales and marketing

In-line with guidance of €2-3m dilution in 1st full year

C&C Group plc | Slide 12

Cash flow €m

110

FCF 130.9% EBITDA

90

+29.0 (0.9)

(1.8)

+0.3 (3.2) (4.9)

70

(0.7)

75.4

(3.2)

72.2

+7.1 57.6 50

50.5

30

C&C Group plc | Slide 13

Balance Sheet €m 0.0

Net Debt to EBITDA

1.65x

(50.0)

+72.2 (100.0)

(26.0) +2.1 (150.0) (30.6)

(170.6)

(172.6)

(12.3) (7.4)

(200.0) Net debt 28 Feb 2017

Free cash flow

Dividends paid

Share Buyback

Exercise of share options

Acquisitions

Translation and other

Net debt 31 August 2017

(7.4) C&C Group plc | Slide 14

H1 FY2018 OPERATING REVIEW

Maintained Tennent’s investment… • New font roll-out

Brand Advocacy2

• 4,815 • new fonts installed

'A brand I’d recommend’

33%

36%

• +2.8%1 • Improvement in RoS

2016

• New social media campaign

40% growth

Brand Salience2 'A brand I’ve heard good things about’

• in social media engagement



22% 13%

Most engaged Scottish brand on social media

2016 1. Based on all new fonts installed by 2. Rolling MAT Feb ‘17 – Total Sample

10th

2017

2017

June - 2 month performance versus control group C&C Group plc | Slide 16

…leading to improved Tennent’s performance Tennent’s GB Net Revenue Growth

Strong share in key channels…

Share draught lager – Scottish IFT

+5.3%

€42.1

€40.0

….and growing rate performance 90 85 80 75 Tennent's on-trade NSR/HL

70 65

1.

Constant currency

Sep-17

Aug-17

Jul-17

Jun-17

May-17

Apr-17

Mar-17

Feb-17

Jan-17

Dec-16

Nov-16

Oct-16

Sep-16

Aug-16

Jul-16

Jun-16

May-16

Apr-16

Mar-16

60

H1 FY’17

1

H1 FY’18

C&C Group plc | Slide 17

Wholesale/3rd party back in growth | GB Stability in number of Wholesale customers……..

Wholesale GB Net Revenue Growth

4000 3500 3000 2500 2000 1500 1000 500 0 Mar Apr May Jun

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

2016

Jul Aug Sep

2017

….volume growth building through FY’18 4.00% Rolling 12 weeks yearon-year growth

3.00% 2.00% 1.00% 0.00% -1.00%

1.

Constant currency

FY18 Wk29

FY18 Wk28

FY18 Wk27

FY18 Wk25 FY18 Wk26

FY18 Wk24

FY18 Wk23

FY18 Wk22

FY18 Wk21

FY18 Wk20

FY18 Wk19

FY18 Wk18

FY18 Wk17

FY18 Wk16

FY18 Wk15

FY18 Wk14

FY18 Wk12 FY18 Wk13

FY18 Wk11

FY18 Wk10

FY18 Wk09

FY18 Wk08

FY18 Wk07

FY18 Wk06

FY18 Wk05

FY18 Wk04

FY18 Wk03

FY18 Wk02

FY18 Wk01

-2.00%

H1 FY’17

H1 FY’18

C&C Group plc | Slide 18

Cider Brand Image | Ireland

Brand Affinity

Brand Affinity

'Is becoming more popular with younger drinkers’ 50% 43% 40%

'Is a brand for me’ 50%

32%

30%

Prompted Awareness 98%

91%

81%

57% 28%

23% 13%

2015

16%

2017

18%

2015

2017

2015

2017

Key: 1.

Source: Company commissioned market research conducted by Ipsos MRBI (2015) and Behaviour & Attitudes in 2017

C&C Group plc | Slide 19

Ireland | Bulmers Performance •

Cider category more subdued -1%



Bulmers volumes –5%; against strong comparatives +6%





Growth in off-trade channel +2%, but off-set by lost distribution points and share in Draught Cider volumes still dominated by Off-trade and Packaged

ROI: Total cider category by channel1

29%

-1%

1. 2.



60%

On-Trade Packaged On-Trade Draught Off-Trade

11%

RoI total cider category volume by channel - 6 months to Aug 2017; Nielsen Ireland Databases RoI total cider category by volume- 12 months MAT share: Nielsen Ireland Databases

On-Trade: Packaged2 90% 89% 88%

86%

Feb '16

Aug'17

Aug '16

Feb '17

C&C total share: 56%

Off-Trade2 47%

47%

47%

46%

Feb '16

Aug '16

Feb '17

Aug'17

On-Trade: Draught2 91%

83%

77%

73%

Feb '16

Aug '16

Feb '17

Aug'17 C&C Group plc | Slide 20

Bulmers | Rate of Sale remains strong Rate of Sale on-trade - draught 12000



Bulmers maintaining its Rate of Sale premium to Orchard Thieves



Supported by brand investment in H1



Continue to experience distribution losses in draught



Competitor activity focused on top tier accounts

TAPPED BULMERS

10000

TAPPED ORCHARD THIEVES

8000 6000 4000 2000

Rate of sale on-trade - packaged 20000 18000 16000 14000 12000

PACKAGED BULMERS

10000

8000 PACKAGED ORCHARD THIEVES

6000 4000 2000 0 AUG 2016

SEP 2016

Source: Neilsen databases - Ireland

OCT 2016

NOV 2016

DEC 2016

JAN 2017

FEB 2017

MAR 2017

APR 2017

MAY 2017

JUN 2017

JUL 2017

AUG 2017 C&C Group plc | Slide 21

GB Cider •

Transfer of GB cider brands to AB InBev •

Slow start, but momentum building



Strong comparatives in Magners +11%

Overall GB cider volumes flat

+30%





Magners performed well in range reviews



Extended distribution reach, especially in convenience and wholesale



Good performance by K Cider enhanced distribution, particularly in convenience

Other cider brands -21%

Good contribution from Orchard Pig1 acquisition

-6%

H1'17

1

Orchard Pig acquired May 2017. Sales, marketing and distribution retained by C&C Group plc

H1'18

C&C Group plc | Slide 22

AB InBev Partnership | Relationship update

Beer Portfolio

Cider Portfolio

Brands:

Territories:

Scotland & Ireland

GB

(Independent free trade On & Off)

(Channel Islands, IOM and National Accounts On & Off)

Activities:

Manufacturing, Sales & Distribution

Sales & Distribution

(Brand Marketing Retained)

(Brand Marketing Retained)

• Increased pricing impacting revenues and margin • Impact of direct supply accounts

• Transition complete • Momentum building

H2 opportunities:

• More stable pricing environment

• Magners Dark Fruit – fast tracked • Christmas trading

Long-term opportunities:

• Craft portfolio • Further collaboration

• Significant volume share and value growth • Physical distribution synergies

H1 performance:

C&C Group plc | Slide 23

Growing Super-Premium & Craft Portfolio Highlights in H1 FY’18

Current Portfolio

Volume Growth Organic growth +24%

Innovation

• Launch of Heverlee in off-trade (Scotland & Ireland) • UK-wide distribution with Tesco for H2

Agency

In house innovation & brand development

1

• Menabrea +62% • Rights to San Miguel in Ireland 53.4 kHL

Exclusive UK and/or ROI distribution of quality imports

Craft

• Acquisition of Orchard Pig; Good On-trade penetration in England & Wales (+52% YOY) 2

Partnerships with Local craft 1. In RoI only 2. Acquired April 2017

28.0 kHL

• 5 Lamps now in 210 pubs in Dublin H1 FY'17

H1 FY'18

C&C Group plc | Slide 24

Core Brand Product Innovation

• •

Addressing growth market for bottled Ales Premiumising the Tennent’s brand

• •

Sweeter proposition developed for Asian markets Addressing growing indigenous cider markets



• •

Having consolidated position in Apple Addressing the growing market for flavours 500 accounts in Scotland C&C Group plc | Slide 25

Admiral Taverns | Overview

Overview

KPI’s

• Admiral is a leading operator of pubs across the UK. As at Sept 2017, Admiral owned and operated 845 pubs, predominantly comprising suburban, community or rural pubs in England & Wales. The portfolio is 95% freehold or long leasehold and is operated in the main as a tenanted, tied estate • No. of pubs: 845 • Property value: £244m (May16) • Wet / dry revenue split (%): 57/43

Geographic presence in UK1

Position of Admiral in the UK Pub Landscape

Key brands

1. As at May16 C&C Group plc | Slide 26

International | Continued Progress

North America 68.4 kHL -25% YOY

EMEA

Asia

85.7kHL +2% YoY

11.8 kHL +47% YOY

Aus/NZ 10.1 kHL +78% YoY

1. Excluding impact of discontinued Tennent’s Charger volumes of 4.8kHL in India in H1’17; Asia volumes (-8%) if included

C&C Group plc | Slide 27

International •

Europe -



-

Good initial performance from Tennent’s in China, Singapore and South Korea Launch of Magners Juicy Apple

Other

Aus/NZ -



+5%

Asia -



Strong performance for Germany and Russia Quieter trading in Spain and France

International (excl. North America)

Good recovery in Australian volumes under CCA

North America -

+11%1

Cider category declines continue to hamper recovery

+4%

H1 FY'17 1. Excluding impact of discontinued Tennent’s volumes of 4.8kHL in India in H1’17; Asia volumes (-7%) if included

H1 FY'18

C&C Group plc | Slide 28

Driving Operating Efficiencies •

Site rationalisation completed in FY2017

Capacity Utilisation Clonmel & Wellpark

-

Transfer production from Borrisoleigh & Shepton Mallet to Clonmel Utilisation rates driving efficiencies



Increased direct deliveries is increasing distribution efficiencies for full year FY18



Focus on administrative overheads -

Streamlined divisional structure c.€3m investment in IT infrastructure will facilitate further efficiencies

82%

76%

H1'17

H1'18

Distribution Efficiency Total cost per kHL -7%

FY'17

FY'18 C&C Group plc | Slide 29

Capital Allocation 1

3

2

Re-invest for organic growth

Investment in restructuring and cost reduction

4

Progressive dividend policy

5

Selective acquisitions in line with strategy

Return excess capital to shareholders



Completed investment in Orchard Pig and Five Lamps and other small acquisitions €12.3m



€30.6m buybacks completed in the period



Post balance sheet investment in Admiral Taverns €40m



Continue share buyback activity on opportunistic basis

H1 FY2018 update •

Continued investment in core and premium brands

• •



Net capex €4.9m in line with guidance



Continual focus on operating efficiency and cost reduction Streamline divisional structure delivering admin savings c. €3m of IT spend to drive efficiencies



Interim Dividend of €5.21c +5.0%

Balance sheet strength & efficiency •

Net Debt/EBITDA of 1.65x at 31 August 2017



Admiral Taverns investment will take us to target leverage of 2x Net debt / LTM EBITDA



Sustainable Free Cash Flow conversion of 60-70% over medium term

C&C Group plc | Slide 30

OUTLOOK

Current trading and Outlook Current trading •

Solid start to H2 in GB



Competitive pressures remain in Ireland



Consumer conditions volatile; September poor across the industry

Outlook FY’19 and beyond •

Volume growth through AB InBev and Admiral channels



Grow value in Tennent’s and Super-Premium portfolio



Continued competitive pressure in Ireland



Further operational efficiencies



Focused growth in selected International markets

Solid business, good cash conversion, strong balance sheet - underpin capital returns and strategic opportunities C&C Group plc | Slide 32

Q&A

APPENDIX

Core Brand Investment | Bulmers

Brand Health Scores1

Brand Salience2

Brand Affinity2

Top 3 LAD brands in ROI

'A brand I’ve heard good things about’

‘Popular with younger Drinkers’

42

25

54%

46%

40% 32%

19

2015

1. 2.

2017

Brand Health Dipstick Average scores on 5 key questions 18-24 age group – September 2016 Source: Company commissioned market research conducted by Ipsos MRBI (2015) and Behaviour & Attitudes in 2017

2015

2017

C&C Group plc | Slide 35

Outcider Distribution build 600



Sweeter proposition within Bulmers family



Good distribution achieved in Off-trade (2% market share)



On-trade distribution growing and pouring in 307 pubs



Activation to stimulate sampling and rate of sale

500 400 300 200

100 0

March

April

May

June

Off-trade

On-trade

May Off-trade

June On-trade

July

August

Volume build 2500 2000 1500 1000 500 0 March

April

July

August

C&C Group plc | Slide 36

Admiral | Transaction structure Shareholder Agreement

Procurement and Supply Agreement with Admiral

• C&C and Admiral will enter into a legally binding Procurement and Supply Agreement (PSA) for as long as C&C remains a shareholder, to increase brand awareness and distribution of C&C brands throughout the Admiral estate

Mgmt.

Proprium

Bidco

C&C (47%) Procurement and Supply Agreement

Shareholder Agreement with Proprium

• Customary shareholder agreement will be entered into between C&C, Proprium and Admiral Management with a long term commitment to unlock synergies and to grow the business

Admiral

C&C Group plc | Slide 37

Development of our Premium Portfolio Prior

2013

2014

Secure exclusive rights to UK & Ireland

Initial investment in 2012 Launched in Scottish and Ireland ontrade

Initial investment in 2012 Note: Calendar years

2015

2016

2017

Secure UK & Ireland rights

Acquired 100%

Initial investment for 25%

Launched in Scottish and Irish Off-trade

Launched in UK & Ireland

JV investment with William Bros

C&C Group plc | Slide 38

Geographic splits (constant currency) Great Britain €’m

Scotland

H1’18 C&C Brands

GB

Scotland

H1’17 C&C Brands

GB

Scotland

Change % C&C Brands

GB

148.2

72.4

220.6

141.2

77.4

218.6

+5.0%

(6.5%)

+0.9%

97.7

40.4

138.1

92.5

44.7

137.2

+5.6% +6.3% (0.7%)

(9.6%) +4.6% (14.2%)

+0.7% +8.0% (7.3%)

18.0 18.4%

3.5 8.7%

21.5 15.6%

16.4 17.7%

4.2 9.4%

20.6 15.0%

+9.8% +70bps

(16.7%) (70bps)

+4.4% +60bps

720.9

589.6

1,310.5 530.9

726.1

687.5

1,413.6 529.0

(0.7%)

(14.2%)

(7.3%) +0.4%

Constant currency

Revenue Net Revenue - Price / mix impact - Volume impact Operating profit Operating margin Volume – (kHL) - of which Tennent’s - of which Magners

279.1

295.7

(5.6%)

International €’m H1’18

Constant currency

H1’17

Change %

Export

N America

Int’l

Export

N America

Int’l

Export

N America

Int’l

Revenue

13.5

9.1

22.6

13.4

12.7

26.1

+0.7%

(28.3%)

(13.4%)

Net Revenue - Price / mix impact

13.4

8.6

22.0

13.2

12.0

25.2

+1.5% (3.7%)

(28.3%) (2.9%)

(12.7%) (3.4%)

+5.2%

(25.4%)

(9.3%)

- Volume impact Operating profit

2.6

0.4

3.0

2.5

0.5

3.0

+4.0%

(20.0%)

-

Operating margin

19.4%

4.7%

13.6%

18.9%

4.2%

11.9%

+50bps

+50bps

+170bps

Volume – (kHL)

108.0

68.4

176.4

102.7

91.7

194.4

+5.2%

(25.4%)

(9.3%)

C&C Group plc | Slide 39

Geographic splits (constant currency) Ireland €’m H1‘18

H1‘17 Underlying*

Change Underlying*

H1‘17 CC

Revenue

164.3

174.2

(5.7%)

183.6

Net revenue

113.0

121.1

(6.7%)

130.5

Constant currency

- Price / mix impact

+0.4%

- Volume impact

(7.1%)

Operating profit

26.0

26.7

(2.6%)

29.5

Operating margin (Net revenue)

23.0%

22.0%

+100bps

22.6%

Total volume – (kHL) of which Bulmers – (kHL)

721.5 218.1

776.8 229.7

(7.1%) (5.1%)

899.8 229.7

* Underlying H1’FY17 comparatives adjusted for: (i) constant currency (H1’FY17: gross revenues €3.1, net revenues €2.6m; operating profit €0.3m); (ii) the impact of certain AB InBev beer volumes in Ireland in the comparative period which transferred to direct supply under the terms of our revised distribution arrangements with AB InBev (H1’FY17: volumes 123kHl; gross revenues €9.4m; net revenues €9.4m; operating profit €2.8m).

C&C Group plc | Slide 40