Britvic plc Investor presentation
BRITVIC INVESTMENT CASE – A TRACK RECORD OF CREATING SHAREHOLDER VALUE Portfolio of Market Leading Brands Strong Channel Positions Healthier / “Better For You” Focus Growing International Presence Resilient and Expandable category Cash Generative - Disciplined Capital Allocation Policy Britvic plc Investor Presentation 2018 2
STRATEGY
A NEW STRATEGY FOR GROWTH WAS LAUNCHED IN 2013 Generate profitable growth International Step change our Build trust and respect in our core markets expansion business capability in our communities » Innovation » M&A in new » Best in class supply » A great company to do geographies chain infrastructure business with » Channel and category expansion » Bolt-on acquisitions in » Retain & recruit great » Play a leading role in existing markets talent addressing the public » Revenue management health agenda » Selective franchise » Cost efficiency and » Maximise our partnerships effectiveness » Minimise impact on the partnership with Pepsi environment Britvic plc Investor Presentation 2018 4
SIGNIFICANT PROGRESS MADE SINCE STRATEGY WAS LAUNCHED Generate profitable growth International Step change our Build trust and respect in our core markets expansion business capability in our communities » Tripled % of revenue » 2 acquisitions in Brazil » £240m capital » 20 billion calories from innovation – Ebba and Bela Ischia investment underway removed from GB diets in supply chain » New contract wins » Completed infrastructure » 30 tns of plastic including Subway, G1 acquisition of East removed in GB 2017 and TRG Coast in Ireland » c60% of senior team in new role » 75% trust index score in » Grown Pepsi MAX » Launched Fruit Shoot GPTW survey across revenue and market multi-pack in » £5m cost efficiency group share United States programme delivered Britvic plc Investor Presentation 2018 5
THE STRATEGY HAS CONSISTENTLY DELIVERED PROFITABLE GROWTH CAGR +3.9% REVENUE CAGR +9.1% ADJUSTED EBITA 41% +700bps REVENUE OUTSIDE GB 12.7% +230bps ADJUSTED EBITA MARGIN CAGR +10.7% ADJUSTED EARNINGS PER SHARE CAGR +9.5% DIVIDEND PER SHARE All figures since 2013 Britvic plc Investor Presentation 2018 6
ACCELERATED MARGIN GROWTH SINCE 2013 – CONFIDENT PRODUCT OF FUTURE EXPANSION BUSINESS INNOVATION CAPABILITY PROGRAMME 12.7% SG&A REVENUE EFFICIENCY MANAGEMENT 10.9% 10.4% 9.2% BRAND AND INTERNATIONAL CHANNEL MIX PROFITABILITY 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 New Management Team & Strategy Britvic plc Investor Presentation 2018 7
A LONG-TERM TRACK RECORD OF EARNINGS GROWTH 52.9 49.3 46.3 41.8 36.5 35.2 33.7 33.7 27.2 26.5 24.8 24.5 23.0 20.9 20.4 18.4 18.4 17.7 17.7 16.7 15.0 12.6 11.0 10.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 EPS DPS Britvic plc Investor Presentation 2018 8
A CLEAR CAPITAL ALLOCATION POLICY TO DELIVER SUPERIOR SHAREHOLDER RETURNS PROFITABLE GROWTH STRONG UNDERLYING FCF CONVERSION Maintain long-term A progressive Invest in business Selective M&A in core debt leverage within dividend policy capability categories 1.5x to 2.5x range DELIVERING SUPERIOR SHAREHOLDER RETURNS Britvic plc Investor Presentation 2018 9
OVERVIEW
HISTORY 1995 Mid 19 th C 1955 2005 2010 2017 Robinsons Acquisition of Company sold to a group IPO Acquisition A chemist starts acquired of wine traders, Britvic France of Bela Ischia creating homemade tonics for the local establishing its routes with the pub trade Chelmsford community 1987 2000 2013 2015 1938 2007 First bottling Acquisition of New CEO and Acquisition of The British Vitamin Product Acquisition of Purdey’s , Ame and agreement with strategy Britvic Brazil Company begins selling juice in Britvic Ireland PepsiCo in the UK Aqua Libra brands launched glass bottles; the foundation of the Britvic range Britvic plc Investor Presentation 2018 11
EXPERIENCED BOARD AND EXECUTIVE TEAM BOARD Simon Ian Mat John Sue Euan Suniti William Litherland McHoul Eccleshare Dunn Daly Clark Sutherland Chauhan CEO Audit Chair CFO Chairman Remco NED NED NED Chair EXECUTIVE Paul Olivier Kevin Hessel Joao Matt Clare Clive Doug Graham Mercier Donnelly De Jong Caetano Barwell Thomas Hooper Frost GB MD France MD Ireland MD Intl MD Brazil MD CMO General Supply HR Counsel Chain Britvic plc Investor Presentation 2018 12
OVERVIEW IN-MARKET PRODUCTION IN GREAT BRITAIN, FRANCE, IRELAND AND BRAZIL RANGE OF CATEGORY LEADING OWNED-BRANDS IN ALL MARKETS BOTTLER FOR PEPSICO IN GREAT BRITAIN AND IRELAND COMMERCIAL OPERATIONS IN BENELUX , ASIA AND UNITED STATES NEARLY 4,700 EMPLOYEES Britvic plc Investor Presentation 2018 13
GREAT BRITAIN OVERVIEW #2 SOFT DRINKS SUPPLIER. PORTFOLIO OF CARBONATED AND STILL BRANDS AVAILABLE IN ALL RETAIL CHANNELS 11.6% VALUE SHARE OF TAKE-HOME CHANNEL 3 FACTORIES AND GROUP HEAD OFFICE 59% OF GROUP REVENUE Source: Nielsen to 30.09.17 Britvic plc Investor Presentation 2018 14
FRANCE OVERVIEW ACQUIRED 2010 RANGE OF SYRUPS AND JUICE-BASED BRANDS MAINLY AVAILABLE IN GROCERY CHANNEL 8.7% VALUE SHARE OF TAKE-HOME CHANNEL 4 FACTORIES 18% OF GROUP REVENUE Source: Nielsen to 08.10.17 Britvic plc Investor Presentation 2018 15
IRELAND OVERVIEW ACQUIRED 2007 #2 SOFT DRINKS SUPPLIER PORTFOLIO OF CARBONATED AND STILL BRANDS AVAILABLE IN ALL RETAIL CHANNELS 24.0% VALUE SHARE OF TAKE-HOME CHANNEL 2 FACTORIES 11% OF GROUP REVENUE Source: IRI to 17.09.17 Britvic plc Investor Presentation 2018 16
BRAZIL OVERVIEW ACQUIRED 2015 & 2017 RANGE OF CONCENTRATES AND JUICE-BASED BRANDS MAINLY AVAILABLE IN MODERN GROCERY CHANNEL 8.9% VALUE SHARE OF TAKE-HOME CHANNEL 4 FACTORIES 9% OF GROUP REVENUE Source: Nielsen to 27.09.17 Britvic plc Investor Presentation 2018 17
OTHER INTERNATIONAL OVERVIEW RANGE OF OWNED-BRANDS AVAILABLE COMMERCIAL OPERATIONS IN BENELUX AND UNITED STATES EXPORT SALES TO 50+ COUNTRIES TRAVEL BUSINESS SUPPLYING AIRLINES, CRUISE SHIPS ETC 0 FACTORIES, SUPPLIED FROM OTHER MARKETS 4% OF GROUP REVENUE Britvic plc Investor Presentation 2018 18
STEP-CHANGING OUR BUSINESS CAPABILITY BY INVESTING IN OUR SUPPLY CHAIN INFRASTRUCTURE STEP-CHANGE OUR BUSINESS CAPABILITY A THREE YEAR £240M CAPITAL INVESTMENT PROGRAMME MINIMUM 15% EBITDA RETURN - £36M EBITDA & £21M EBITA FROM 2020 ADDITIONAL REVENUE AND WORKING CAPITAL BENEFITS ANTICIPATED CONSOLIDATES PRODUCTION IN GREAT BRITAIN TO 3 SITES CREATES A WORLD-CLASS SUPPLY CHAIN TO ENABLE GROWTH Leeds Rugby London Britvic plc Investor Presentation 2018 19
ON COMPLETION THE SUPPLY CHAIN INVESTMENT WILL STEP-CHANGE OUR CAPABILITY STEP-CHANGE OUR BUSINESS CAPABILITY ENVIRONMENTAL CAPACITY FLEXIBILITY EFFICIENCY COST Fewer road miles Medium term can & pet Broader range of Faster lines Lower production & capacity pack sizes distribution cost Lower power and Produce closer to Lower capital required to water usage demand introduce new formats Britvic plc Investor Presentation 2018 20
A SOLID FINANCIAL PLATFORM UNDERPINNING THE STRATEGY Additional £175m private placement funding issued in H1 Maturing 2025 to 2032, Fixed and floating rate Replacing £120m notes maturing early 2017 Average coupon c.2.5% £400m revolving credit facility extended to November 2021 Circa £958m total debt facilities maturing December 2017 to February 2032 Circa £55m maturing in FY18 Britvic plc Investor Presentation 2018 21
PROGRESS IN 2017 AND OUTLOOK FOR 2018
2017 – ANOTHER YEAR OF STRONG PROGRESS STRONG REVENUE AND PROFIT GROWTH TWO ACQUISITIONS COMPLETED AND INTEGRATED INCREASING CONTRIBUTION FROM IN-YEAR BENEFITS OF BUSINESS INNOVATION CAPABILITY PROGRAMME AHEAD OF GUIDANCE CONTINUED ORGANIC MARGIN GROWTH 41% OF REVENUE GENERATED OUTSIDE THROUGH REVENUE AND COST OF GB MANAGEMENT DELIVERING IN THE SHORT-TERM: INVESTING FOR LONG-TERM GROWTH Britvic plc Investor Presentation 2018 23
CATEGORY REMAINED RESILIENT IN 2017 Market Volume +0.8% +4.2% (1.3)% (11.9)% FY Market Value +2.0% +5.5% +0.1% (5.7)% GB take-home market data is supplied by Nielsen and runs to 30 September 2017. ROI take-home market data is supplied by Nielsen Britvic plc Investor Presentation 2018 24 and runs to 8 October 2017. French market data is supplied by IRI and runs to 17 September 2017. Brazil market data is supplied by Nielsen and runs to 26 September 2017
INVESTMENT IN INNOVATION IS DELIVERING REVENUE GROWTH GENERATE PROFITABLE GROWTH IN OUR CORE MARKETS Invested in our innovation capability to generate % OF TOTAL REVENUE FROM category & channel growth opportunities through: OWNED-BRAND INNOVATION 6.0 5.4 • Making our portfolio more premium and more healthy 5.0 • Extending our core brands to access new occasions 4.0 3.9 4.0 and consumers 3.1 • Bringing new brands to market to access new or 3.0 emerging categories 2.0 2.0 1.5 Targeting margin accretion 1.0 Vast majority below the soft drinks industry levy 0.0 2010 2013 2014 2015 2016 2017 Britvic plc Investor Presentation 2018 25 Innovation – Launch year + 3 years, only owned-brand innovation measured on total group revenue
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