Annual General Meeting 6 July 2017
Welcome & Introduction Brian Stewart Chairman C&C Group plc | Slide 2 C&C Group plc | Slide 2
FY2017 | Business Review Stephen Glancey CEO C&C Group plc | Slide 3 C&C Group plc | Slide 3
FY2017 | Year of consolidation Delivering strategic priorities 1. Returned three core brands (Bulmers , Tennent’s & Magners) to volume growth 2. Continued growth in Premium and Export businesses 3. Extended AB InBev partnership with long term distribution agreement in cider in the UK 4. Completed rationalisation of production footprint and cost reduction programme 5. Balance sheet and cash generation profile providing the firepower to invest in brands and flexibility to acquire assets or return capital 6. Capital allocation through dividends, acquisitions and/or share buybacks driving shareholder returns Building long term brand value C&C Group plc | Slide 4 C&C Group plc | Slide 4
FY2017 | Performance Review € 95 million € 559 million Operating Profit Net Revenue Flat year-on-year 1 Down 6.9% 1 € 7.8 million +12% Negative FX Impact on Reported Op. Profit Investment in DBM & new Founts 7.6% drag on reported profits Core Brands 1 € 58.3 million 1.55x 2 Free cash flow (Pre exceptionals ) Net Debt to EBITDA Strong balance sheet and flexibility 53% Conversion of EBITDA 5% growth € 23.2 million in final dividend to 9.37 cent per share Share buyback in year € 147 million share buyback over last 2 years 3 Supported by strong balance sheet & underlying cashflow 1.FY2016 comparative adjusted for constant currency (FY2016 translated at FY2017 F/X rates) and North America revenues to be on a like for like basis with the current financial year (as though the Pabst arrangement had also been in operation for the whole of FY2016). 2. Net Debt as at 28 February 2017 and EBITDA FY2017 3. Share buy-backs excl. stamp duty and commissions Jan 15 – Apr 17 C&C Group plc | Slide 5 C&C Group plc | Slide 5
Core Brand Investment | Bulmers Brand Salience 2 Brand Affinity 2 Brand Health Scores 1 'A brand I’ve heard good things about’ ‘Popular with younger Drinkers’ Top 3 LAD brands in ROI 42 54% 40% 46% 32% 25 19 2015 2017 2015 2017 1. Brand Health Dipstick Average scores on 5 key questions 18-24 age group – September 2016 2. Company data: customer survey C&C Group plc | Slide 6 C&C Group plc | Slide 6
Core Brand Investment | Tennent’s Brand Advocacy 1 Brand Salience 1 Brand Affinity 2 'A brand I’d recommend’ 'A brand I’ve heard good things about’ ‘Drank by people like me’ 57% 36% 22% 44% 33% 27% 32% 13% 22% Tennent's Fosters Carling Stella Budweiser 2016 2017 2016 2017 1. Key brand awareness relative – company data 2. Rolling MAT Feb ‘17 – Total Sample C&C Group plc | Slide 7 C&C Group plc | Slide 7
Core Brand Investment | Magners Brand Salience 1 Brand Recognition 1 Growing Market Share ‘A brand I’ve heard good things about’ ‘ I like what the brand stands for ’ % Share of Total Apple CIDER 41% 29% 8% 26% 6% 17% 2017 2017 Feb 2016 Feb 2017 2016 2016 1. Company data: customer survey C&C Group plc | Slide 8 C&C Group plc | Slide 8
Core Brand | Innovation • Having consolidated position • • Sweeter proposition Addressing growth market for in Apple • Addressing Millennial bottled Ales • Addressing the growing market • consumers Premiumising the Tennent’s brand for flavours C&C Group plc | Slide 9 C&C Group plc | Slide 9
Video
C&C Group plc | Slide 11 C&C Group plc | Slide 11
Current trading | FY2018 Outlook | Brexit Current trading • Q1 FY2018 in-line with expectations FY2018 Outlook • Ireland – Year of investment to drive share • Scotland – Continued momentum • C&C Brands – ABI to continue volume momentum in Magners; distribution synergies delayed to FY2019 • US – Limited visibility on category stability • International – Focused growth trajectory Brexit • Brexit strategy underway; monitoring of political & economic implications • Encouraged by political determination to minimise the potential economic impact Stable cash generative business with strong balance sheet underpin capital returns & strategic opportunities C&C Group plc | Slide 12 C&C Group plc | Slide 12
Formal Business Brian Stewart Chairman C&C Group plc | Slide 13 C&C Group plc | Slide 13
Resolution 1
Resolution 1 To consider the financial statements for the year ended 28 February 2017 and the reports of the Directors and the auditors thereon FOR: 233,958,812 SHARES AGAINST: 1,665 SHARES TOTAL: 233,960,477 SHARES WITHHELD: 2,771 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. C&C Group plc | Slide 15 C&C Group plc | Slide 15
Resolution 2
Resolution 2 To confirm and declare dividends FOR: 233,959,340 SHARES AGAINST: 1,137 SHARES TOTAL: 233,960,477 SHARES WITHHELD: 2,771 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. C&C Group plc | Slide 17 C&C Group plc | Slide 17
Resolution 3(a)
Resolution 3(a) To elect Jim Clerkin FOR: 233,680,606 SHARES AGAINST: 274,876 SHARES TOTAL: 233,955,482 SHARES WITHHELD: 7,766 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. C&C Group plc | Slide 19 C&C Group plc | Slide 19
Resolution 3(b)
Resolution 3(b) To elect Geoffrey Hemphill FOR: 233,608,306 SHARES AGAINST: 347,176 SHARES TOTAL: 233,955,482 SHARES WITHHELD: 7,766 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. C&C Group plc | Slide 21 C&C Group plc | Slide 21
Resolution 3(c)
Resolution 3(c) To elect Andrea Pozzi FOR: 233,151,263 SHARES AGAINST: 808,916 SHARES TOTAL: 233,960,179 SHARES WITHHELD: 3,069 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. C&C Group plc | Slide 23 C&C Group plc | Slide 23
Resolution 3(d)
Resolution 3(d) To re-elect Sir Brian Stewart FOR: 224,155,703 SHARES AGAINST: 9,805,407 SHARES TOTAL: 233,961,110 SHARES WITHHELD: 2,138 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. C&C Group plc | Slide 25 C&C Group plc | Slide 25
Resolution 3(e)
Resolution 3(e) To re-elect Stephen Glancey FOR: 233,132,680 SHARES AGAINST: 828,430 SHARES TOTAL: 233,961,110 SHARES WITHHELD: 2,138 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. C&C Group plc | Slide 27 C&C Group plc | Slide 27
Resolution 3(g)
Resolution 3(g) To re-elect Joris Brams FOR: 233,135,868 SHARES AGAINST: 825,242 SHARES TOTAL: 233,961,110 SHARES WITHHELD: 2,138 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. C&C Group plc | Slide 29 C&C Group plc | Slide 29
Resolution 3(h)
Resolution 3(h) To re-elect Vincent Crowley FOR: 233,249,870 SHARES AGAINST: 711,240 SHARES TOTAL: 233,961,110 SHARES WITHHELD: 2,138 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. C&C Group plc | Slide 31 C&C Group plc | Slide 31
Resolution 3(i)
Resolution 3(i) To re-elect Emer Finnan FOR: 232,944,544 SHARES AGAINST: 1,016,566 SHARES TOTAL: 233,961,110 SHARES WITHHELD: 2,138 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. C&C Group plc | Slide 33 C&C Group plc | Slide 33
Resolution 3(j)
Resolution 3(j) To re-elect Stewart Gilliland FOR: 232,923,787 SHARES AGAINST: 714,742 SHARES TOTAL: 233,638,529 SHARES WITHHELD: 324,719 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. C&C Group plc | Slide 35 C&C Group plc | Slide 35
Resolution 3(k)
Resolution 3(k) To re-elect Richard Holroyd FOR: 216,278,999 SHARES AGAINST: 17,261,337 SHARES TOTAL: 233,540,336 SHARES WITHHELD: 422,912 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. C&C Group plc | Slide 37 C&C Group plc | Slide 37
Resolution 3(l)
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