Analyst presentation H1 2018/19 Half year ended 30 September 2018, 20 November 2018
Disclaimer DISCLAIMER THIS PRESENTATION may contain forward looking statements. These statements are based on current expectations, estimat es 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
H1 2018/19 1. Lucas Bols at a glance 2. Highlights H1 2018/19 3. Operational highlights 4. Financials H1 2018/19 5. Outlook 3
Lucas Bols at a glance 13.4% 18.5% 46.7% 20.0% 22.7% 19.9% Revenue EBIT* €m €m 4
Global brands organic revenue growth of 3% Revenue split H1 2018/19 Global brands Regional brands Regional brands € 10.2 mln. Bols Liqueurs range Liqueurs 21% 29,8% 79% 70,2% Italian Liqueurs Dutch Jenever portfolio White Spirits Global brands € 37.6 mln. Gross Profit split H1 2018/19 Regional brands € 4.9 mln. 17% Value brands Nuvo Passoã 83% Global brands € 24.0 mln. 5
Strong and diversified global footprint, with around half of the revenues coming from outside of Western Europe Group revenue per geographical segment based on H1 2018/19 6
Clear strategy to capture the growing cocktail trend and premiumization while maintaining the competitiveness of regional brands Mission Lucas Bols We create great cocktail experiences around the world . Strategic framework Lucas Bols Leverage Lead the Build the Accelerate global operational development of brand equity brand growth excellence the cocktail market • To strengthen and grow our global brands in the international cocktail market • To maintain the competitiveness of our regional brands in regional and local markets 7
H1 2018/19 1. Lucas Bols at a glance 2. Highlights H1 2018/19 3. Operational highlights 4. Financials H1 2018/19 5. Outlook 8
Highlights H1 2018/19* Revenue of € 47.8 million, in line with last year Revenue Global brands reported revenue growth of 3.0%, while revenue of the regional brands was down 10.5% Brand mainly as a result of temporary import restrictions in Western Africa and lower jenever/vieux sales in the performance Netherlands North America achieved double-digit revenue growth on the back of a strong performance in the US. Asia- Regional Pacific showed healthy revenue growth, while both Western Europe and Emerging Markets saw revenue performance decline due to the performance of the regional brands The overall gross margin came in at 60.5% (down 110 bps) as a result of relatively lower shipments to Gross margin higher margin markets EBIT amounted to € 12.9 million in line with last year EBIT Net profit came in at € 7.9 million, which is in line with last year Net Profit Interim dividend set at € 0.35 per share in cash, equal to last year Dividend *All comparisons are on an organic basis, i.e. at constant currencies and excluding one-off items. In H1 2018/19 the one-off items consist of one-off restructuring costs of € 0.3 million (net) at Avandis. Pre-IFRS 15/16. 9
H1 2018/19 1. Lucas Bols at a glance 2. Highlights H1 2018/19 3. Operational highlights 4. Financials H1 2018/19 5. Outlook 10
Operational highlights H1 2018/19 – global brands Bols Liqueurs range: Revenue in line with last year • Continued growth in the US, driven by increased distribution in retail chains • Strong performance in China was off-set by a decline in Japan • Bols Watermelon and Bols Cucumber successfully launched as LowBols heroes • New flavours added to the ‘Add Flavor To Your Margarita’ program • Multiple activation programs aimed at both on and off-trade White spirits : Overall stable performance • Bols Genever Red light Negroni expansion in the US, activation in several other markets • Continued double digit growth trend for Damrak Gin in both the US and the Netherlands • Damrak Gin launched in South-Korea and listed at Formula 1 in Singapore • Bols Vodka under pressure in Canada and Argentina. Continued good performance in the Netherlands 11
Operational highlights H1 2018/19 - Global brands Italian Liqueurs: Performance slightly below last year • Highest score of Galliano L’Aperitivo in Wine Enthusiast Magazine bitter test • Social media campaign for Galliano L’Aperitivo in the US • Solid performance of Galliano in core market Australia • Strong performance Vaccari following global brand restyling • Vaccari on-premise activation in key cities in Mexico Passoã: Continued good performance with mid-single digit revenue growth • Distribution expanded in the US to 35 states and new listings, both on- and off-trade • Recovery in Puerto Rico, growth in Asia-Pacific • New brand activations in Western Europe • Signature cocktail “Porn Star Martini” expansion continues in the UK Nuvo: Relaunch in de US • Gradually building up the distribution with focus on a limited number of states • First signs of activations are positive • Strong retail activation program planned for H2 2018/19 12
Operational highlights H1 2018/19 - Regional brands • In Western Africa the company experienced temporary import restrictions into Togo and Benin • Revenue Dutch domestic jenever/vieux portfolio was down as a result of the declining market • Planned relaunch of Bols Jenever and Bokma with strong promotional activities in the second half of 2018/19 • Activation Bols Jenevers with new activation program “Bols komt met een biertje ” in October • New drinks strategy Coebergh in the Netherlands and activation programs Pisang Ambon in Belgium and Denmark 13
Operational developments H1 2018/19 - US Strong organic revenue growth of 12.9% Continued strong performance Passoã, with additional retail and on- trade listings secured Further strengthened the retail position of Bols Liqueurs on the back of the recent listings and continued growth of market share Strengthened brand awareness Bols Genever through activations such as #redlightnegroni during the Negroni week in the USA Damrak gin - Accelerate distribution in the US by a Social Media campaign “Ride like an Amsterdammer ” Relaunch of Nuvo with focus on a limited number of states . 14
Awards Galliano L’ Aperitivo • Wine Enthusiast 94 points Highest rated bitter • Listed in the top 100 spirits of 2018 15
1. Lucas Bols at a glance 2. Highlights H1 2018/19 3. Operational review 4. Financials H1 2018/19 5. Outlook 16
Revenue and EBIT in line with last year Highlights Revenue amounted to € 47.8 million, which was in line with last year at constant currencies. The effect of currencies on revenue was € 0.9 million negative. The gross margin stood at 60.5%, a decrease compared to 62.2% in the first half of 2017/18. This decrease is the result of currencies, relatively lower shipments to higher margin markets and the introduction of Nuvo. EBIT for the first half of 2018/19 came in at € 12.9 million in line with last year, at constant currencies and excluding the one-off restructuring charge at Avandis of € 0.3 million (net of tax). The EBIT margin came in at 26.9%, organically in line with last year. * Excluding the impact of IFRS 15 and 16 Organic growth: at constant currencies, excluding one-off items 17
Global brands showed an improvement in revenue of 3.0% Revenue development (in €m) Group revenue structure -2.0% (H1 2018/19) 1.1 -1.2 48.8 21% -0.9 47.8 79% Global brands Regional brands H1 2018/19* H1 2017/18 Reported Organic Revenue (* €m) growth % growth % Δ Global Brands Δ Regional Brands Δ FX FY 2017/18 FY 2018/19 Global brands 37,6 37,4 0,7% 3,0% Regional brands 10,2 11,5 -11,1% -10,5% Total 47,8 48,8 -2,0% -0,3% 60.5% 62.2% 48.4% 63.7% * Excluding the impact of IFRS 15 and 16 Organic growth: at constant currencies, excluding one-off items Reported gross margin 18
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