Invitation Capital Markets Day - C&C Group

Invitation Capital Markets Day - C&C Group

2016 Capital Markets Day Disclaimer The presentation contains forward-looking statements, including statements about the C&C Group plc's (the “Group...

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2016 Capital Markets Day

Disclaimer The presentation contains forward-looking statements, including statements about the C&C Group plc's (the “Group”) intentions, beliefs and expectations. These statements are based on the Group's current plans, estimates and projections, as well as the Group'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 Group 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 forwardlooking 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 pages 14 and 15 of the Group's 2016 First Half 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 Group. Bulmers Ltd of Clonmel, Ireland, a Group within the C&C Group plc, 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 C&C Group plc | Slide 2

Welcome | Agenda 0930











Close C&C Group plc | Slide 3

Presentation Team

Phil Tate European CEO

C&C Group plc | Slide 4

Presentation Team Local Heroes Taking on Global Brands

Mark Boulos

Paul Condron

Brian Beattie

Chief Commercial Officer

Marketing Director | Scotland

Marketing Director | All Ireland C&C Group plc | Slide 5

Presentation Team Partnership with Pabst

Chris Barrow Chief Operating Officer C&C Group plc | Slide 6

Presentation Team Growing Export Opportunity

Andrea Pozzi

Conor Hardy

Managing Director | C&C Brands

Commercial Director | APAC C&C Group plc | Slide 7

Export | Growth showing real momentum Italy









entry to market

Source: Company data / Estimates

C&C Group plc | Slide 8

Consumer & Customer Trends

Phil Tate European CEO

Video Clip

C&C Group plc | Slide 9

Local Heroes Taking on Global Brands

Mark Boulos | Chief Commercial Officer

Re-cap of Key Trends


Tried & Tested

Quality, Heritage, Provenance

Brand Cut Though

Retailer Range

C&C Group plc | Slide 11


C&C Group plc | Slide 12

Differentiation & The Importance of Portfolio

C&C Group plc | Slide 13

Tried & Tested | Premium Mainstream •

Premium mainstream – on-trend

Quality, heritage, provenance

€140m invested in the three power brands over the last 5 years (equal to 10% of the three brands’ net sales)(1)

Significant prompted awareness (2) o o o

Magners: 86% Tennent’s: 98% Bulmers: 91%

Local heroes – sets the brands apart from global mainstream peers Source: (1) Company data / estimates; (2) IPSOS MRBI/Bulmers Brand & Ad Research/Sept ’15; Hall & Partners, 2015

C&C Group plc | Slide 14

Treat | Boutique and Speciality

C&C Group plc | Slide 15

Treat | Boutique and Speciality

Source: (1) AC Nielsen, 52 w/e 30th Jan-16; (2) Company data FY 14 – FY 16

Opportunity to price up and differentiate

8% of branded volumes now coming from boutique and speciality (1)

Heverlee 15 khl in Ireland & Scotland – 265% growth in 2 years (2)

Chaplin & Cork’s – €1m sales revenue in 12 months (1)

Excited to take on Pabst Brewing Company portfolio C&C Group plc | Slide 16


C&C Group plc | Slide 17

Tennent’s Lager

Scotland | Tennent’s Lager: A ‘Fabric’ Brand

Source: AC Nielsen, 52 w/e 30.01.16; CGA, 52 w/e 23.01.16

From Scotland’s oldest brewer, since 1556

Integral brand in Scottish society

In On-trade, at the heart of the bar.

In Off-Trade, at the heart of the fixture.

Scotland’s No.1 beer brand

Broad consumer appeal C&C Group plc | Slide 19

Scotland | Scotland’s Favourite Drink

Source: CGA, MAT to 08/08/15; AC Nielsen, MAT to 15/08/15

C&C Group plc | Slide 20

Scotland | Tennent’s Lager: On-Trade • On the bar in 8 out of 10 pubs

• Almost 2 in every 3 pints of lager sold in Scotland • Two-thirds of volume from more profitable On-Trade sector • At the heart of our brand-led wholesale model

Source: CGA, 52 w/e 23.01.16; AC Nielsen, 52 w/e 30.01.16

C&C Group plc | Slide 21

Scotland | Tennent’s Lager: Off-Trade In Scottish Takehome: •

Scale o 65% bigger than Budweiser o More than 3x size of Fosters

Rate of sale o Higher than any Beer brand in the UK o 48% faster than Fosters o 60% faster than Stella Artois o 85% faster than Carling

Presence o Highest levels of branded display space in 9 of the last 13 periods in Multiple Grocers Source: AC Nielsen, 52 w/e 30.01.16

C&C Group plc | Slide 22

Scotland | Tennent’s Lager: Platforms



Shareable Content

Point of Purchase

C&C Group plc | Slide 23

Scotland | Tennent’s Lager: Agile Social & PR

C&C Group plc | Slide 24

Scotland | Tennent’s Lager: Brand Health

‘Brand consumed by people like me’

Source: Hall & Partners / Taylor Mackenzie, Jan-16

C&C Group plc | Slide 25

Bulmers Cider

Bulmers | Fundamentals •

Ireland’s original cider with over 80 year’s heritage

No. 3 LAD brand (1)

No.1 cider brand & No.1 packaged LAD brand with 44% share of packaged LAD (1)

91% on-trade and 47% off-trade cider share (1)

Pint bottle available in 95% of Irish pubs with draught available in 7 out of every 10 pubs (1)

Bulmers pint bottle outsells closest cider rival in excess of 6 to 1 in rate of sale (1)

Most preferred LAD brand among 18-24 year olds(2)

Source: (1) Nielsen MAT Jan ’16; (2) IPSOS MRBI/Bulmers Brand & Ad Research/Sept ’15

C&C Group plc | Slide 27

Bulmers |Brand Strength: Pricing (Off) 380 HEINEKEN 360 BUDWEISER 340








260 240

Strongest Retail Pricing in Market

220 200 4 W/E AUG 09/15

4 W/E SEP 06/15

Source: Nielsen Jan 16 Mults Pricing

4 W/E OCT 04/15

4 W/E NOV 01/15

4 W/E NOV 29/15

4 W/E DEC 27/15

4 W/E JAN 24/16 C&C Group plc | Slide 28

Bulmers | Brand Strength: Packaged (On) Packaged RoS On-Trade (litres)

Packaged Distribution On-Trade %








60 40


Other Cider



Other Cider


0 -20

JAN 2016

DEC 2015

NOV 2015

OCT 2015

SEP 2015

AUG 2015

JUL 2015

JUN 2015

MAY 2015

APR 2015

MAR 2015

JAN 2016

DEC 2015

NOV 2015

OCT 2015

SEP 2015

AUG 2015

JUL 2015

JUN 2015

MAY 2015

APR 2015

MAR 2015

FEB 2015

Source: Nielsen Jan 16

FEB 2015


C&C Group plc | Slide 29

Bulmers | Brand Strength: Draught (On) Draught RoS On-Trade (litres) 160

Draught Distribution On-Trade % Bulmers





Bulmers 60

100 80



Other Cider

Other Cider 20

40 0

20 0

-20 JAN 2016

DEC 2015

NOV 2015

OCT 2015

SEP 2015

AUG 2015

JUL 2015

JUN 2015

MAY 2015

APR 2015

MAR 2015

JAN 2016

DEC 2015

NOV 2015

OCT 2015

SEP 2015

AUG 2015

JUL 2015

JUN 2015

MAY 2015

APR 2015

MAR 2015

FEB 2015

Source: Nielsen Jan 16

FEB 2015


C&C Group plc | Slide 30

Bulmers | Our Activity

Bulmers video

Video Clip

C&C Group plc | Slide 31

Bulmers | Platforms Point of Purchase


Socially Relevant Digital Content


C&C Group plc | Slide 32

Bulmers | 360 Activation Experiential & student

Always On Digital

PR & Sponsorship Year round Sponsorship & PR Strategy

Grow Innovation

Grow draught Winning the fridge

C&C Group plc | Slide 33

Magners Cider

C&C Group plc | Slide 34

Magners | Fundamentals

Source: AC Nielsen, 52 w/e 30th Jan-16 & CGA, 52 w/e 23rd Jan-16

Transformed the perception of cider in the UK, the world’s largest cider market, in 2005

Now exported to over 50 countries worldwide

c. 680 khl globally

No. 5 cider brand globally

No. 1 bottled apple cider brand in GB market

No. 1 cider in Northern Ireland C&C Group plc | Slide 35

Magners | Recent Developments •

Stabilised the business

The UK business makes c. €10m

Invested in market share this year

Rationalisation has hurt other brands

In the GB off-trade, Magner’s Original is the only top 5 apple brand ahead of the market in both volume (+10%) and value (2%)

Have momentum and platform for growth

Exciting campaign and plans for next year

Source: Company data/Estimates; AC Nielsen, 12 w/e 30.01.16; Nielsen AdDynamix, 2015

C&C Group plc | Slide 36

Magners | This Year’s Campaign


New Campaign -

2nd largest media spend in the category


On air for half the year


From 1% share of voice to 45%

Video Clip

C&C Group plc | Slide 37

Summary 1





Local heroes

Our brand portfolio and business model present us with enormous opportunities… C&C Group plc | Slide 38

Growing Export Opportunity Conor Hardy | Commercial Director Asia Pacific

C&C Group plc | Slide 39


Photo Montage


C&C Group plc | Slide 40

Export | Historic Context ► Export activity since 2002

International Volumes (khl) HL

► Started in USA & Europe

c. 450 khl

500,000 450,000 400,000

► More recent expansion in Asia & Africa

350,000 300,000

► Partnership approach

250,000 200,000

► Profitable model

150,000 100,000 50,000

► Sustained growth in volume and profit


2005 Source: Company data / Estimates including Export & North America


2015 C&C Group plc | Slide 41

C&C International | Global Footprint Sustained Expansion of International Business



Markets Globally

Most Influential Cities

Magners 51 markets; +6% vol growth YoY

Tennent’s 31 markets; +34% vol growth YoY

Woodchuck Untapped Potential Source: Company data / Estimates

C&C Group plc | Slide 42

Overview of C&C’s markets | Asia Pacific Market size • • • • •

45 kHL Volume + 57% YOY Volume Split: 58% Asia: 42% ANZ DBM to NSV ratio 28% Magners No 1 or No 2 position in Asian markets

C&C business model • • • • •

16 Direct Markets 3rd Party Distribution model Contract packing - Australia Regional Office – Singapore Local management: 2 Commercial, 1 Marketing, 1 Operations

Key Regional Partners

Source: Company data / Estimates

C&C Group plc | Slide 43

Successful Brand Led Export Model Italy

Andrea Pozzi

Video Clip C&C Group plc | Slide 44

International | Brand Led Export Strategy The rise of the global marketplace is creating new opportunities for our brands

Authentic Exports

New Flavours


Innovation C&C Group plc | Slide 45

International Cider | Growth Opportunity Cider is still one of the fastest growing LAD categories globally Global Cider Volume

Cider % of LAD

Excluding UK Market mHl litres




Ireland Germany


12 10





Spain Argentina




USA South Afr.


2009 Source: Canadean 2015








13% 1% 4% 3% 5%

8% 6% 7% 19% C&C Group plc | Slide 46

Successful ‘Asset Light’ Operating Model Partnerships key to asset light model and growth


Long term deals with strong local and regional players


Synergistic portfolio alignment


Leverage local expertise and in market brand execution: driving ROI


Asset light model: high operating margins at low cost to C&C

Magners distribution in Thailand

New agreement across France & Germany

Profit Share Deal in New Zealand C&C Group plc | Slide 47

Export | Positive Growth Trajectory



Europe Vol YoY

Asia Vol YoY

Year 1



Aus/NZ Vol YoY




FY16 Own Brand Vol Growth

FY16 Operating Margin


Source: Company data / Estimates before allocation of central overheads

C&C Group plc | Slide 48

Outlook | Positive Growth Trajectory Meaningful growth - investing today for the future


Seeding for long term, Innovation, leverage beer portfolio


Build on strong foundations and expand footprint


Enter Nigeria and South Africa


Expand beer & cider footprint through local partnerships


Consumer relevance & partnerships to drive growth C&C Group plc | Slide 49

Pabst Brewing Company C&C Capital Markets Day

Agenda  Who we are  Why we will win  How we are doing

Flagship Craft Local Legends Imports and Distribution Other National Brands Other

National Brands

Iconic American lager

Leading innovative craft brands in the US

Business Overview

 Pabst Brewing Company (‘PBC’), founded in 1844, is the largest independently-owned beer company in the US • Majority owned by Great American Brewing Company (Eugene Kashper) • Minority owned by TSG Consumer Partners • Bought November 2014

Market focused premium brands that appeal to regional consumers

Partner of choice for leading international brands

 2.5% volume share of the US beer market – 5th

High volume brands with low growth outlook

 1.5% profit share; c.45% EBITDA growth 2015

Broad range of heritage brands

Regional Brands

largest player

US Beer market - evolution of the segments Super Premium + Craft = Premium American

Key Drivers 24%

Drinking less but better quality


Local and heritage



Premium + Sub Premium = Value/Economy

Demand for alternative alcohol 60%




Searching for the new 'new' EBIT POOL



Imports = International

Portfolio led by the iconic PBR brand An American Original

Millennials Beer of Choice

Award winning

Easy drinking yet flavorful lager first introduced in Milwaukee in 1844

National brand known for being authentic, creative, hip and individualistic

Americas largest independently owned brewer; American owned since 1844

Beer of choice for the millennial generation with strong ties to craft – PBR outsells Budweiser in states with strong craft beer consumption

PBR is aligned with the nation's leading craft markets

Winner 2015 Brewer of the Year in the Large Brewing Company Category at the Great American Beer Festival

Winner of 14 medals at the Great American Beer Festival including the 2012 Gold medal

46.3% 34.7%



Brewer of the Year – Great American Beer Festival

% of Consumers Aged 21–34

Strongly affiliated with craft Individualistic Image Cache

Leads to Strong Craft Affiliation

Proudly supports consumers individualism – trend setting – consumer driven

PBR is the #1 complementary domestic beer to craft drinkers

Local Grassroots appeal

8 out of 10 top craft markets are top PBR markets

Domestic Beer Index with Craft (key brands)

150 143 134 132 131 128 124 122 92

Range of authentic brands with unique regional ties

Sales and Marketing platform restructured for growth

Key new hires since acquisition PBC Executive Team Eugene Kashper Chief Executive Officer

Cordell Sweeney Chief Financial Officer

Rob Urband Chief Legal Officer

Chris Barrow COO

Samar Chand Strategy Director

Gleb Lifshits CEO, Small Town Brewery

Greig Debow President, Small Town Brewery

Justin Beck Chief of Staff

Rich Pascucci Chief Growth Officer

Brian Bousley President, Pabst Brewing Co. Bruce Muenter Chief Sales Officer

Terry Hopper President, VHCC

Neil Nersesian EVP, Brewing Operations Dan McHugh Chief Marketing Officer, Heritage

Hired post-acquisition in 2014

Mark Beatty Director of Imports

Not Your Father's Root Beer the #1 craft SKU in the US Not Your Father's Appeals to the New Craft Consumer

NYF's Root Beer is a beer infused with natural spices and herbs – High ABV, premium pricing and heavy flavor – Appeals to the craft consumer

PBC signed exclusive partnership agreement in early 2015, acquired Small Town Brewery in June 2015 – Small town brewery continues to be independently run

Fits with Pabst's DNA as an alternate brand of beer, with a strong appeal to the craft consumer – Root Beer is in favor with craft consumers and millennials, which aligns with the rest of the portfolio

Source: Nielsen (total volume actually double Nielsen capture), Beer Marketer's Insights

Top 10 Craft SKU's for 13 Weeks Ending 01/02/2016

NYF's Priced at a Premium to Craft Category

NYF is attracting new consumers Attracting New Consumers

Expanding Portfolio Offering

Track record of attracting new consumers to the beer category

NYF 52 Week Volume Through Feb 6 (000s cases) ACV (%) Root Beer

New Buyers 8% Category Expansion 11%

Ginger Beer





Ginger beer is expected to have a market potential of c.60% of the root beer volumes

Brand Shifting 81%


Clear partner of choice for multi-nationals


Imports 

Leading Chinese import brand in the US

Exclusive distribution, marketing and import rights agreement


Small Town Brewery

 Leading US cider business with 6.3% share of the US cider market, owned by C&C

 Exclusive distribution agreement with Small Town Brewery signed in 2015 with an option to acquire

 Sale and distribution rights acquired through a partnership agreement with Vermont Hard Cider

 Option exercised and STB acquired in June 2015

 Option to acquire the business for a fixed price

 STB founder Tim Kovac remains a significant stakeholder in charge of product development

PBC future mix to match industry – Net Revenue

Source: Company results and budget. High-End includes Smalltown, Cider, Imports, craft and innovation

PBC the fastest $ sales growth in 2015

Source: Nielsen; Total US xAOC+Convenience+Exchanges 2015 Full Year

Break 0930











Close C&C Group plc | Slide 67

Brand Led Wholesale Tom McCusker | Ireland Managing Director Alastair Campbell | Scotland Managing Director

C&C Group plc | Slide 68

Business Model | Right for the Future 1.

Owning route to market = owning the customer relationship


Great portfolio – a brand for every occasion


Ability to access value in growing niche & premium segments


Ideal partner for world beer brand owners


Adding value to the customer through service, investment and range C&C Group plc | Slide 69

Core Market Overview Characteristics Fragmented

C&C Model Brand led wholesale

On trade profit pool bias Strong pub culture

Strong brands in geographies

High per capita consumption

Developing niche & premium range

Heritage & provenance important

Drive World Beers

Local legislatures Full service offering

Attractive Profit Pools

Strong Market Position C&C Group plc | Slide 70

Model | Consumer & Customer Centric Consumer driven range


Unparalleled customer reach

One Stop Shop

Scale drives competitive offering Order flexibility C&C Group plc | Slide 71

Ireland | Consumer & Customer Centric Reach

9 depots / 13k customers / 75 Trucks 100 front line sales , 30 call centre On-Trade, Horeca, Convenience


16m units sold per annum


20k face to face calls 15k proactive calls a month via Call Centre


2,400 SKUs stocked


Loan book €22m, 500 accs and €5m in outlet

Source: Company data/Estimates

C&C Group plc | Slide 72

Ireland | Dynamics Market




C&C Specifc Consumers Changing consumers New Energy & New Entrants 3 x Draught brands

Competition New Entrants Cider & Beer Craft proliferation

Big Brands Challenge Top 3 lager brands Heineken -2% Budweiser -11% Carlsberg -3%

Source: Nielsen On-Trade MAT Jan 2016


Brand Take home premium too high Pint Bottle highest margin LAD 2 Formats Bottle & Draught Draught tap a target

Cultural Challenges




C&C Group plc | Slide 73

Ireland | Grow the Business Bulmers Stabilisation

Commercial Delivery Build Revenue

Niche & Premium Brand Potential

Excellence in World Premium

C&C Group plc | Slide 74

Ireland | Bulmers Stabilisation Compelling Economics

18 to 24’s Flavours, sponsorships and Light

Take Home Pricing Appropriate Premium

On Trade

Excellent in outlet Activation

Re-livery and back bar

Distribution Dual Stocking

C&C Group plc | Slide 75

Ireland | Niche & Premium Brand Potential NI LAD On -6% Heverlee NI No 1 Premium +78% 8 khl



15 khL brand including Scotland Source: Nielsen 52 weeks MAT Jan ’16 and Company data/Estimates

C&C Group plc | Slide 76

Ireland | Excellence in World Premium  No. 2 packaged lager: 18% share; growing in declining segment  91% distribution  Outsells nearest competitor 13:1  No. 5 in Take Home and no can format!

ABI Brands

Source: Company data/Estimates and Nielsen MAT Jan 16

Wine – No 1 in Ireland

NAB’S | No. 3 energy drink

10% Share and 900k cases

Fastest growing +35%

C&C Group plc | Slide 77

Ireland | Commercial Delivery New management Team

Sales force fully operational and focused

In outlet activation

at the heart

Speciality and brand focus

Optimise CSC and on line ordering

C&C Group plc | Slide 78

Scotland | Consumer & Customer Centric Reach

7,500+ Direct Customers 40+ Field Sales Team

90 Trucks, 6 Depots, 5,000+ deliveries a week


On-line, Sales Call & Service Centre


Full range: 2,500+ SKUs


Loan book €35m, 1000+ outlets

C&C Group plc | Slide 79

Scotland | Challenges Behind Us ► Recent challenges easing • •

Drink Driving: -6% impact on draught Business Integration

► New momentum • • • •

‘Tennent’s – Proudly Serving Scotland’ ‘Leading with Service’ culture company-wide Sales Focus – Maximising every opportunity New management team Sales Director – Alan Hay (ex AG Barr)

Scottish Draught Beer First year of Legislation


First 8 weeks Lapping Legislation

Aug to Nov Dec to Feb Mar to May Jun to Aug Aug to Nov Dec to Jan '14 '15 '15 '15 '15 '16


-2 -6


-5 -8

► Scotland business recovering with market Source: CGA, 52 w/e 23.01.16; Company data / estimates

C&C Group plc | Slide 80

Scotland | Tennent’s: At the heart of it ► Strengthening brand health •

Tennent’s On-Trade Scotland - Share Growth: Top 10 Brands

Latest 12 Months v. LY v. 2YA

Spontaneous Brand Awareness: 71% (18-24yo), +10% on Aug 2013

61.3% MAT 2YA

► On-Trade Growth • •

MAT TY 61.1%

On-Trade Share Gain = +0.2% MAT Stockists over twice of nearest competitor

► Off-Trade Premiumisation •



Tennent’s Lager in Glass - ‘Retro’ Limited Edition +25% GM premium & 40% New Consumers Tennent’s ‘Black T’ +61% GM premium to Tennent’s Lager Cans

Source: Hall & Partners, 2015 Vs. 2013; CGA, 52 w/e 23.01.16; AC Nielsen, 52 w/e 30.01.16; Dunnhumby, Feb-16

C&C Group plc | Slide 81

Scotland| Tennent’s: Leveraging the Brand Brand Activation in outlet

Takehome Range Extension into Glass

Advertising, PR & Social Media

On-Trade Fount Innovation

Growing the core brand

On-Trade Glassware Revision & POS

C&C Group plc | Slide 82

Scotland | Building from the Core ► Magners: #2 Brand in On-Trade

► #2 Apple Cider in Off-Trade

► Cider back in growth in On-Trade

On-Trade Cider Volume & Value Trends in Scotland MAT to Dec v. 1 Year Ago -0.1

Total Cider 5.0

► Magners +9.7% MAT Value growth Volume Trend Value Trend


► Investing in growth • • •

€1.25m + new ‘Ice Cold’ Fount On-Trade ROS campaigns Winning draught taps from #1


Magners 9.7 Source: CGA, 52 w/e 23.01.16 C&C Group plc | Slide 83

Scotland | A Winning Portfolio

Own Brands

Speciality Brands

World Premium Brands

Customer & Consumer Driven Portfolio

Softs Drinks Wines Spirits Cider Beer C&C Group plc | Slide 84

Scotland | Supporting the Free Trade ► Through Investment •

On-Trade price freeze

Loan investment of €35m

Investing at Point-of-Purchase

Brand marketing – Drives consumer choice

► Through Service •

Service excellence

Customer choice

Expert team

Flexible ordering C&C Group plc | Slide 85

Scotland| On the Front Foot 1.

Challenges behind us


Trading environment improving


Exceptional brand portfolio


The right model


Well placed for growth C&C Group plc | Slide 86

Kenny Neison Group Chief Financial Officer

FY16 Closing Update Earnings

EBIT: €103m

Positives Export volume +20% Magners Original CCB +1% Supply chain cost


FCF/EBITDA > 90% (exc Exceptionals)

Receivables Securitization Agreement: c €25 m used Underlying conversion 70%


€76m buy back

20.8m shares €3.63 per share 6% of register


Net Debt/EBITDA modest increase to c. 1.4x for FY16

Buy back funded through cash flow Net Debt in line with FY15 Balance sheet flexibility retained

NOTE: The above numbers are unaudited and may be subject to change.

Negatives ‘Perfect Storm’ in Ireland & Scot. US share loss

C&C Group plc | Slide 88

FY17 Perspective….. 1

Earnings Recovery & Growth

Trading Landscape

2 Earnings Recovery Investment & Growth


Source: Company data/Estimates

Cost Reduction

One Offs: Weather, drink driving Momentum: Export & CCB

Pabst in US Stable platforms in core

Magners complete relaunch Funding for Niche premium

‘In Outlet’ – Scot. & Ireland Significant increase in spend

€15m target (Oct 2015)

C&C Group plc | Slide 89

Cost Reduction Plans €15m Cost Saving Programme

Actioned Plant Rationalisation: 4 to 2 Direct Delivery Activity Increase Support function consolidation

20% 40%

Input Environment Outlook benign


Phasing Annualised impact FY18 €20m







Source: Company data/Estimates

Maximum €10m Net of asset disposals C&C Group plc | Slide 90

Cost Reduction Plans

Video | Billy Mason

Video Clip

C&C Group plc | Slide 91

Forward Earnings Profile 1.

Volume growth


Margin expansion through cost reduction, net of re-investment


Underlying EBIT recovery

FY17 Consensus

€109 million Source: Company data/Estimates

Magners Export Core US


Build on momentum Build on momentum Invest behind stable platforms & into improved environments Growth through Pabst footprint

Share Buy Back Impact +6%


FY17 EPS Growth

+15% C&C Group plc | Slide 92

Forward Cash & Leverage Profile Return Capital AND Retain Financial Flexibility Exceptional Cash

Seek to offset with asset disposal proceeds

Hold Leverage @

Working Capital

Expand receivable facility to cover Gleesons



Plastic line at Clonmel only major project

Surplus Cash

Cash Generation

Underlying FCF/EBITDA 60 - 70%

Capital Returns

Complete €100m (€25m o/s) programme by July ‘16 Maintain long term progressive dividend policy

c.€40m Source: Company data/Estimates C&C Group plc | Slide 93

Capital Allocation Preference

Alternative Absent the Right Deal

Invest for Growth

1. Return FY17 Surplus Cash: c.€40m

2. Leverage to 2x by FY18 and return capital (per June 2015)

Right Strategically Source: Company data/Estimates

Economics Stack

3. Dividend cover to 2x C&C Group plc | Slide 94

Capital Allocation | M&A Attractive Vertical into Route to market: E&W

Less Appealing Vertical into retail: E&W

Horizontal: E&W

Bolt-On deals: Ireland & Scotland

Non GB or Ireland assets

Niche premium: GB & Ireland

Underperforming assets

Risky by scale transactions C&C Group plc | Slide 95

Capital Allocation | Discipline Execution is less certain than opportunity

Capital Discipline is Key

Cheap Money


Valuations Are

Craft Impact


Spirit Matthew Clark Carlsberg Peroni & Grolsch

Reality Last Orders’ Effect

€130m of share buy back Sustained dividend increases

Growth opportunities the priority….but not at any cost

C&C Group plc | Slide 96

Summary | How we see it Difficult year behind us… now in right shape for a positive run ► Underlying earnings growth: boosted by investment & cost reduction

► EPS: enhanced through current share buy back activity ► Sustained cash generation ► Potential consolidation activity requires careful balance sheet management ‒ ‒ ‒ ‒

€100m share buy back to complete July 2016 Leverage to be maintained around 1.4x in FY17 Absent a deal, surplus cash will be returned in FY17 Absent a deal, guidance of 2x leverage dividend cover by FY18 unchanged

Source: Company data/Estimates

C&C Group plc | Slide 97

Summary Aligned to Shifting Consumer Preferences Stephen Glancey | Chief Executive Officer

C&C| Heritage & Provenance

C&C Group plc | Slide 99

C&C| Brand Provenance

C&C Group plc | Slide 100

C&C| Inherent Cashflow Characteristics

€137 million 15 year average annual EBITDA

Source: Company data/Estimates

C&C Group plc | Slide 101

International Cider | Growth Opportunity Cider is still one of the fastest growing categories globally Global Cider Volume Excluding UK Market


mHl litres


12 10






6 4

2009 Source: Canadean 2015





2014 C&C Group plc | Slide 102

UK | The Home of Cider

60m consumers €40bn alcohol industry €20bn LAD market

London | A World City C&C Group plc | Slide 103

UK | Size isn’t everything Revenue £m


Molson Coors









Carlsberg UK



SAB Miller



Greene King









C&C Brands



Source: Published Annual Report Data; Company data/Estimates

C&C Group plc | Slide 104

Scotland & Ireland

► Cultural challenges in FMCG model

► Future proofing the model

C&C Group plc | Slide 105

Innovation is Key

Innovation represents 4% of own brand volume

Source: Company data/Estimates based on brands launched in last 5 years

C&C Group plc | Slide 106

Capable Partner in World Beers

Scale Deliver 512 khl of ABI brands

Source: Company data/Estimates



(FY14 – FY 16 Vol)

(FY14 – FY 16 Vol)

ABI agency Market

+10% -9%

ABI agency Market

+118% +1%

C&C Group plc | Slide 107

Investing| Smarter Ways of Investing

C&C Group plc | Slide 108

USA| Pabst – The Right Partner

C&C Group plc | Slide 109

International | Volume Performance International Volumes (khl) c. 450 khl

500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0

2005 Source: Company data / Estimates


2015 C&C Group plc | Slide 110

Short-Term Focus

Revenue growth in core markets

Export volume growth

Deliver cost reduction plan

Cash Generation C&C Group plc | Slide 111

The Road Ahead 1.

Cider growth category


Core brand strength


Consolidation cycle


Inherent balance sheet strength


Positive long-term outlook C&C Group plc | Slide 112