Welcome & Introduction Chairman

05 July 2018

C&C Group plc | Slide 2C&C Group plc | Slide 2

Welcome & Introduction

Brian Stewart

Chairman


FY2018 | Business Review

Stephen Glancey

CEO


Strategic & Operational Highlights

➢ Resilient performance across our branded portfolio in UK and Ireland

➢ Strengthened route-to-market across the UK

➢ Built momentum through first year of AB InBev cider distribution agreement

➢ Strong performance in our Scottish businesses; Tennent’s driving share growth and revenues+5%; wholesale volumes, customers and revenues up

➢ Bulmers brand investment grew share in the off-trade and held share in packaged on-trade;competition remains intense in draught

➢ Strong organic growth in super-premium and craft with volumes +41%

➢ Up-tiering distribution with proven partners in International

Year of stabilisation & strategic investments

Stable base to capitalise on opportunities


FY2018 | Performance Overview

€86.1 millionOperating Profit, before €1.2m of associate income (mainly Admiral)

Down 7.0%

€548.2 millionNet Revenues

Down 4.9%

2.37xNet Debt to EBITDA

Strong balance sheet & pension schemes in surplus

€70.8 millionFree cash flow (Pre-exceptionals)

70.5% Conversion of EBITDA

€33 millionShare buybacks in FY2018

€163 million share buybacks over last 3 years1

€53 millionInvestment in Craft Brands & Admiral Taverns

Supported by strong balance sheet & underlying cashflow

15.7%Operating Margin

Down 40bps

€241.5 millionUK & Ireland Branded Net Revenues

Up 0.8%

1. Share buy-backs excl. stamp duty and commissions Jan15-Apr18

€9.37cFinal Dividend

Full Year Dividend of €14.58c (+1.7% YoY)


Tennent’s investment….

Investment

• > 5000 installations

• 40% growth in social media engagement

Font roll out programme

Sponsorship

• Tennent’s sponsors Scottish rugby

Social media “MUP Ready”

• Premiumisation and pack re-engineering at key price points


…leading to strong Tennent’s performance

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YouGov Purchase Intent - Scotland

1. Constant currency

Performance

Revenue GrowthBrand Strength

….growing rate performance

€76.7

€80.8

FY2017 FY2018

+5.3%1

….plus revenue growth


Bulmers brand investment…


…strengthening brand scores

1. Brand Health Dipstick Average scores on 5 key questions 18-24 age group – September 20162. Source: Company commissioned market research conducted by Ipsos MRBI (2015) and Behaviour & Attitudes in 2017

Brand Health Scores1

Top 3 LAD brands in ROI

1925

42

Brand Salience2

'A brand I’ve heard good things about’

46%

54%

2015 2017

Brand Affinity2

‘Popular with younger Drinkers’

32%

40%

2015 2017


Magners & GB

• Good 1st year of AB InBev cider distribution agreement

• Slow start, but momentum built through year

• Magners performed well in range reviews with major retailers

• Extended distribution reach, especially in convenience and wholesale

- Magners is +12% in Nielsen MATs to Feb18 for Impulse

• Good performance by K Cider

- Enhanced distribution, particularly in convenience

• Good contribution from Orchard Pig1 acquisition

1 Orchard Pig acquired April 2017, contributing 33kHL to FY18. Sales, marketing and distribution retained by C&C Group during FY18, but will pass to AB InBev during FY19.

FY2017 FY2018

+0.3%ABI: Flat

Scotland IFT: +3.2%

Other cider brands

-18%

+19%

GB cider volumes

+3.6%

https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjw_4jguIHXAhUBI8AKHYbgCZUQjRwIBw&url=https://www.redbubble.com/people/lauried/works/21926797-k-cider-logo?p%3Dsticker&psig=AOvVaw07ovrs3VOaI2jQlejhfVDU&ust=1508665943684513


52.5 kHL

107.6 kHL

FY2017 FY2018

Organic growth+41.3%

Volume Growth

Growing Super-Premium & Craft Portfolio

In house innovation & brand development

Exclusive UK and/or ROI distribution of quality imports

Partnerships with Local craft

1. In RoI only 2. Acquired May 2017; contributed 33 kHL

✓ Launch of Heverlee in off-trade (UK & Ireland)

✓ UK-wide distribution

✓ Menabrea +55% in GB

✓ Rights to San Miguel in Ireland

✓ Secured rights to Tsingtao (UK & ROI)

✓ Acquisition of Orchard Pig

✓ Further investment in 5 Lamps

✓ 5 Lamps now in 303 pubs in Dublin

FY2018 Highlights

Inn

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raft

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Current Portfolio

✓ High margin

✓ High ROIC

✓ UK-wide opportunity

FY2019 Potential


• Award winning operator of c.850 pubs across the UK

• Partnership with management and Proprium Capital

• Like-for-like EBITDA +0.8% (3 months to February 2018)

• Good Q1 take-up of Magners promotions

The Nelson, Mudeford, Christchurch BH23 3NJ, UK

Strengthened route-to-market in the UK

• Largest independent distributor to the UK on-trade hospitality sector

• Over 4,000 products, including beers, wines, spirits, cider and soft drinks

• 300+ suppliers

• Direct access to an incremental c.23,000 pre-dominantly on-trade customers

• Good progress in restoring service levels and key operating KPI’s


Current Trading & Outlook

Current Trading

• Good start to FY19; helped by favourable weather and World Cup

➢ MUP in Scotland has been in line with our expectations

➢ Bulmers returned to moderate volume growth

Outlook

• Branded volume growth through AB InBev, Admiral and Super-Premium

• Grow value in Tennent’s (incl. MUP)

• Competitive pressure in Ireland, but stabilising profit

• Matthew Clark – solid progress in stabilising the business

• Cash generation and de-lever towards 2.0x Net Debt/EBITDA

Resilient business, strong cash conversion, strategic growth drivers in place


Formal Business

Brian Stewart

Chairman

Resolution 1


Resolution 1

To consider the financial statements for the year ended 28 February 2018 and the reports of the Directors and the auditors thereon

FOR: 231,147,035 SHARES

AGAINST: 7,918 SHARES

TOTAL: 231,154,953 SHARES

WITHHELD: 217 SHARES

NOTE: A vote WITHHELD is not a vote in law and is not counted in the calculation of the proportion of the votes FOR and AGAINST the resolution

Resolution 2


Resolution 2

To confirm and declare dividends

FOR: 231,148,674 SHARES





Resolution 3(a)


Resolution 3(a)

To elect Jonathan Solesbury

FOR: 229,634,536 SHARES

AGAINST: 1,514,967 SHARES


WITHHELD: 5,667 SHARES


Resolution 3(b)


Resolution 3(b)

To re-elect Stewart Gilliland

FOR: 229,171,276 SHARES





Resolution 3(c)


Resolution 3(c)

To re-elect Stephen Glancey

FOR: 229,767,750 SHARES





Resolution 3(d)


Resolution 3(d)

To re-elect Joris Brams

FOR: 229,743,469 SHARES





Resolution 3(e)


Resolution 3(e)

To re-elect Andrea Pozzi

FOR: 229,756,285 SHARES





Resolution 3(f)


Resolution 3(f)

To re-elect Jim Clerkin

FOR: 230,481,483 SHARES





Resolution 3(g)


Resolution 3(g)

To re-elect Vincent Crowley

FOR: 228,575,363 SHARES





Resolution 3(h)


Resolution 3(h)

To re-elect Emer Finnan

FOR: 230,472,580 SHARES





Resolution 3(i)


Resolution 3(i)

To re-elect Geoffrey Hemphill

FOR: 230,482,652 SHARES





Resolution 3(j)


Resolution 3(j)

To re-elect Richard Holroyd

FOR: 227,364,362 SHARES





Resolution 4


Resolution 4

To authorise the Directors to fix the auditors’ remuneration

FOR: 231,137,443 SHARES


TOTAL: 1,840 SHARES

WITHHELD: 231,153,330 SHARES


Resolution 5(a)


Resolution 5 (a)

To receive and consider the Report of the Remuneration Committee on Directors’ Remuneration for the year ended 28 February 2018

FOR: 230,075,635 SHARES





Resolution 5(b)


Resolution 5(b)

To receive and consider the Directors’ Remuneration Policy

FOR: 230,550,915 SHARES





Resolution 6


Resolution 6

To authorise the allotment of shares

FOR: 180,202,059 SHARES





Resolution 7


Resolution 7 (Special Resolution)

To authorise the limited disapplication of statutory pre-emption rights

FOR: 211,157,269 SHARES





Resolution 8



To authorise the additional 5% disapplication of pre-emption rights

FOR: 180,186,865 SHARES





Resolution 9



To authorise the purchase by the Company of its own shares

FOR: 230,388,281 SHARES





Resolution 10



To determine the price range at which Treasury Shares may be re-issued

off-market

FOR: 199,634,831 SHARES





Welcome & Introduction Chairman

Documents

Transcript of Welcome & Introduction Chairman