Analyst presentation H1 2016/17 Half year ended 30 September 2016 17 November 2016
Disclaimer DISCLAIMER THIS PRESENTATION may contain forward looking statements. These statements are based on current expectations, estimates and projections of Lucas Bols’ management and information currently available to the company. Lucas Bols cautions that such statements contain elements of risk and uncertainties that are difficult to predict and that could cause actual performance and position to differ materially from these statements. Lucas Bols disclaims any obligation to update or revise any statements made in this presentation to reflect subsequent events or circumstances, except as required by law. Certain figures in this presentation, including financial data, have been rounded. Accordingly, figures shown for the same category presented in different tables may vary slightly and figures shown as totals in certain tables may not be an exact arithmetic aggregation of the figures which precede them. 2
1. Highlights H1 2016/17 2. Business review 3. Financials H1 2016/17 4. Outlook 3
Highlights H1 2016/17 Revenue of € 39.4 million, in line with last year, driven by 2.2% organic growth in the global brands Revenue North America and Emerging markets reported strong revenue growth, Asia-Pacific showed recovery, while Western Europe remains challenging Dutch genever brands Floryn and Legner were acquired as part of the takeover of the Cooymans distillery Cooymans by the Avandis joint venture Increased investments in commercial organisation and A&P largely funded by higher EBIT of the regional D&A brands, including one-off gain on Cooymans acquisition EBIT EBIT of € 11.3 million, down 2.4% at constant currency Net Profit Net profit of € 7.8 million, up 1.7% at constant currency; earnings per share of € 0.62 and EPS The interim dividend in cash set at € 0.31 per share Dividend Passoa Agreement with Rémy Cointreau on Passoã joint venture announced on October 14 th 4
1. Highlights H1 2016/17 2. Business review 3. Financials H1 2016/17 4. Outlook 5
Lucas Bols: Four strategic pillars Lead the development of Build the brand equity the cocktail market Increase market position of the global brands Use marketing techniques and strategic and maintain the competitiveness innovation to optimise the product of regional brands offering and positioning Leverage operational Accelerate growth global excellence brands Tailor growth strategies for the brands to Maintain and optimise current business model the markets within our four geographic segments with a mix of in-house and outsourced activities 6
Key initiatives global brands in H1 2016/17 Bols • New flavor introductions of Bols Liqueurs in Japan, Switzerland, Portugal and USA Liqueurs • Bols Genever launched in Scandinavia, South-Korea and Italy • Bols Genever masterclasses in Belgium, Israel, South-Korea, China and the USA White spirits • Damrak Gin expansion in Canada and introduction in Italy • Introduction of Bols Vodka in China, Thailand and Vietnam • Expansion of Galliano brand portfolio in China, Italy, Poland, Scandinavia and the Netherlands Galliano • Development of new global brand booklet for Galliano focusing on the classic L’Authentico, L’Aperitivo and Amaretto & Ristretto Route to • First shipments of global brands to new markets like Philippines, Ethiopia and Kenia market 7
Launch of Galliano L’Aperitivo • Galliano L’Aperitivo is a well balanced bitter , or in Italian ‘Amaro’. • The recipe includes many extracts and infusions of Mediterranean citruses such as chinotto, bergamots & grapefruits. • The L’Aperitivo recipe includes a subtle addition of the heart of Galliano L’Autentico. The taste: fresh Mediterranean citrus notes combined with subtle herbal notes Galliano L’Aperitivo market presence Key serve : Galliano Tonic & Americano Already launched: Scandinavia Netherlands Germany UK Italy Israel Singapore Canada To follow: New Zealand USA Mexico 8
Lucas Bols: Four strategic pillars Lead the development of Build the brand equity the cocktail market Increase market position of the global brands Use marketing techniques and strategic and maintain the competitiveness innovation to optimise the product of regional brands offering and positioning Leverage operational Accelerate growth global excellence brands Tailor growth strategies for the brands to Maintain and optimise current business model the markets within our four geographic segments with a mix of in-house and outsourced activities 9
World 50 best bar awards London A C T I VATION S W O R L D 5 0 B E S T B A R AWA R D S 2 0 1 6 • Increased awareness of Bols Genever in top of global cocktail bars. • 500 visitors, only on invitation all important bar owners & bartenders from around the world. • Bols Genever present as only Genever brand with bar, logo’s, advertising & goodie bags. • Acceptance & renewed awareness of the Bols Genever brand within key target group. • Expansion of Bols Genever distribution in top cocktail outlets. 10
Trade fairs A C T I VATION S B A R C O N V E N T B E R L I N 2 0 1 6 • > 10.000 visitors from the global bar scene. • Bols Genever present with ‘hidden speak easy bar’ within Bols stand. • Serving ‘Kopstootjes’ with Bols Genever Barrel Aged and applications for Bols Around the World competition. 11
Ongoing initiative: Bols around the world A C T I VATION S B O L S A R O U N D T H E W O R L D – G E N E V E R E D I T I ON 2 0 1 6 / 1 7 H • BATW is a bartender competition for bartenders that aims to grow bartenders careers, as well as their passion for bartending. • BATW increases bartender’s knowledge by providing education and inspiration, showcasing their talent and growing their international network. • Start 31st of Oct 2016; Finals 8,9,10 May 2017 • > 2.000 participants from all over the world 12
Lucas Bols: Four strategic pillars Lead the development of Build the brand equity the cocktail market Increase market position of the global brands Use marketing techniques and strategic and maintain the competitiveness innovation to optimise the product of regional brands offering and positioning Leverage operational Accelerate growth global excellence brands Tailor growth strategies for the brands to Maintain and optimise current business model the markets within our four geographic segments with a mix of in-house and outsourced activities 13
Investments in Cooymans and Passoã are a perfect fit in Lucas Bols’ strategy Passoã joint venture fits within the strategic ambition to broaden portfolio of premium and super-premium global brands and facilitates Lucas Bols’ asset light business model The acquisition of Cooymans by Avandis and the acquisition of the Floryn and Legner brands by Lucas Bols further strengthen the domestic spirits market share 14
Cooymans transaction; Lucas Bols acquires genever brands Floryn and Legner Avandis, the blending and bottling joint venture, has, on 26 July 2016, acquired the activities of Distillery Cooymans and the wine activities of Delcave/NCK in Oosterhout, both were part of the Dirkzwager Groep. With this acquisition Avandis strengthens its market position, serving the clients even better with this new combination of know-how and production facilities. Lucas Bols has acquired the genever brands Floryn and Legner and the small brand Leyden Gin, thereby further strengthening its leading position in the genever market. As of September 2016, sales of Floryn and Legner to our distributor Maxxium in the Netherlands are included in Lucas Bols’ results. 15
Passoã: Brand overview Passoã is the original Passion Fruit liqueur with a bright pink Product impression colour in a signature black bottle Passoã is a high quality, well-known consumer brand, with a global footprint Passoã has a strong position in the Western-European off- trade segment and is an important ingredient for a wide range of cocktails Attractive financial performance with a strong EBIT margin and a strong cash conversion 16
Passoã : Adding the Passoã brand to the portfolio BOLS Liqueurs White spirits Italian liqueurs Passoã BOLS Vaccari BOLS Vodka Damrak Gin Galliano Genever Sambuca Lucas Bols can further build the Passoã brand based on the recent successes of Passoã in the on-trade environment in various markets like the UK As Passoã is currently sold in over 40 countries, there are opportunities for distribution expansion into new markets, building on the global presence of the Bols Liqueurs range and Galliano Passoã can benefit from the positioning of Bols Liqueurs as the number one brand for the international cocktail market and from Lucas Bols active marketing towards the bartending community Passoã will increase Lucas Bols' distribution power and positioning in several core markets, and strengthen the in-house distribution platform in the US The Passoã activities will add significant value to Lucas Bols shareholders with an expected increase of earnings per share by around 20% on a full year basis (based on 2015/16 earnings per share) 17
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