January, 2012 Disclaimer This presentation does not constitute an - PowerPoint PPT Presentation

Davy Conference Davy Conference New York New York January, 2012

Disclaimer This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any shares or other securities of C&C Group plc (the "Company"). The presentation contains forward-looking statements, including statements about the Company's intentions, beliefs and expectations. These statements are based on the Company's current plans, estimates and projections, as well as the Company's expectations of external conditions and events. Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. The Company undertakes no duty to and will not necessarily update any such statements in light of new information or future events, except to the extent required by any applicable law or regulation. Recipients of this presentation are therefore cautioned that a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward- looking statements. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. Your attention is drawn to the risk factors set out at the end of this presentation. They are not set out in any particular order of priority. The risks described in this document, however, are not exhaustive and consequently do not necessarily comprise all those associated with the Company. There may be other risks which may have an adverse effect on the business, financial condition, results or future prospects of the Company. Slide 2

Presentation Agenda  Business Overview  C&C | Business Re-positioned  Financial Overview  Strategy & Outlook  Appendix Slide 3

Business Overview Slide 4

Group Overview  Manufacturer, marketer and distributor of branded Long Alcohol Drinks (“LAD”)  World’s #2 cider producer  #1 premium cider brand in Ireland & the UK  #2 and #3 cider brands in the United States  Scotland’s #1 LAD brand  Premium positioning in cider: a growing beverage category globally  12 Months to Feb 2011: Revenue € 789.7 million; Net Revenue € 529.6 million; EBITDA (i) € 126.3 million  Consistently high free cash flow generation - Free Cash Flow (ii) : 84.6% of EBITDA in FY 2010/11; 92.5% in H1 2011/12  Strong balance sheet - H1 2011/12 Net Cash surplus of € 59.7 million; Net Interest covered 26 times (i) Earnings before exceptional items, interest, tax, depreciation & amortisation and inclusive of discontinued activities (ii) Free cash flow is a non-GAAP measure that comprises cash flow from operating activities net of capital investment cash outflows which form part of investing activities Slide 5

C&C | Strong Brand Portfolio Other Principal Cider Brands Beer Assets Scotland • Wellpark brewery • Advances to customers Non-exclusive on-trade distribution rights • Tennent’s wholesale Northern • Advances to customers Ireland Non-transnational on- and off-trade Packaged Republic of On- and Non-transnational off-trade Ireland • Clonmel Facility distribution rights England • Shepton Mallet Cider Manufacturing Facility • Distribution Facility International

Geographic Presence Northern Ireland Scotland Magners, Tennent ’ s & 3 rd Party Brands M agners, Tennent ’ s & 3 rd Party Brands 2010/11 FY | 16% of Net revenue; 10% of EBIT 2010/11 FY | 59% of Revenue; 43% of EBIT* Clonmel Facility Wellpark Facility Shepton Mallet Facility England & Wales Republic of Ireland Magners, Gaymers & Tennent’s Bulmers, Tennent’s & 3 rd Party Brands 2010/11 FY | 59% of Revenue; 43% of EBIT* 2010/11 FY | 21% of Net revenue; 44% of EBIT *Note: Scotland and England & Wales combine to form Great Britain (GB) which comprised 59% of revenue and 43% of EBIT in 2010.11 FY International 2010/11 FY | 4% of Revenue; 3% of EBIT Europe Australia North America Magners , Gaymers brands, Tennent’s Magners, Gaymers brands & Tennent’s Magners , Gaymers brands, Tennent’s & Hornsby’s Slide 7

Republic of Ireland | Cider ROI | On & Off Trade – Rolling MAT Volume Movement (%) for Bulmers and LAD category Source: ACNielsen Data to August 2011 Slide 8

Great Britain | Cider GB* | On & Off Trade – Rolling MAT Volume Movement (%) for Magners and Cider category Source: ACNielsen & CGA Data to 6 August 2011 *Great Britain (‘GB’) includes Scotland, England and Wales Slide 9

International Cider Markets ROI ROI 0.7m HLs 0.7m HLs UK UK Rest of World Rest of World 9.5m HLs 9.5m HLs Category Growth forecast: Category Growth forecast: 7.0m HLs 7.0m HLs +5% to 10% pa +5% to 10% pa Category Growth forecast: Category Growth forecast: +10% to 20% pa +10% to 20% pa Source: Euromonitor & Company Estimates (2010) HLs: Hectolitres Slide 10

Business Re-positioned Slide 11

2008 to 2011 | 3 Year Turnaround ▶ Stabilise Magners declining at c. 16% per annum in 2008 ▶ Consolidate ‘Mono Brand’ exposure ▶ Transform Market Risk exposure Slide 12

C&C Re-positioned | Stabilise Ireland New pricing on Bulmers pint bottle and Bulmers draught Launch of Bulmers Pear, Bulmers Berry and new advertising Two operational cost reduction programmes Hold earnings Great Britain New Magners advertising Launch of Magners Pear, Magners Golden Draught and Magners Specials Re-structuring of Magners distribution and formation of cider sales force Scotland Launch of Magners Pear, Magners Golden Draught, Magners Specials & Caledonia Best Re-structuring of Magners distribution Cost and synergy delivery Slide 13

C&C Re-positioned | Consolidate  Stabilise and consolidate position as LAD focused business in core markets  Focus on a cider led LAD strategy  Deleverage and reduce exposure to banks 3 Transformational Transactions  Acquisition of Tennent's and Gaymers for € 268.6 million  Disposal of Spirits & Liqueurs for € 300 million Tennent’s & Gaymers Spirits & Liqueurs 350 Positive Impact on C&C € 295m 300 € 269m 250 200 Net cash inflow c. € 25m 150 100 c. € 32m Proforma EBITDA increase € 49m 50 € 17m 0 Consideration EBITDA Consideration EBITDA Slide 14

C&C Re-positioned | Transform  Accelerate internationalisation of cider  New long term partnership arrangements in Australia & Canada  Investment in US sales & marketing infrastructure  Acquisition of Hornsby’s, number 2 domestic US cider brand  C&C becomes the number 2 cider company with an estimated 20% share in a rapidly growing US cider category (c. +20% per annum)  Hornsby’s complements Magners’ existing position in the US  Opportunity to grow Hornsby’s in the US and potential to develop export led growth of the brand Significant progress…..but internationalisation of cider is only beginning Slide 15

3 Year Transformation  Business position strengthened in core markets  Operating cost base reduced; well-invested asset base  Broader portfolio of cider and beer brands  Continuing innovation  Significantly enhanced and growing international business  Consistently strong cash flow generation  Strong balance sheet Slide 16

Financial Overview Slide 17

3 Year Financial Overview  Consistently strong cash flow generation capability Net Revenue (i) EBITDA (ii) EBITDA (iii) Net Debt (iii) Financial Year Free Cash Flow FCF % of Net Debt to € m € m Margin % (FCF) € m EBITDA € m EBITDA (iv) 2008/09 FY 415.6 119.9 28.8% 76.1 63.5% (226.2) 1.9x 2009/10 FY 362.7 106.3 25.1% 109.9 103.4% (364.9) 2.8x 2010/11 FY 529.6 126.3 23.0% 106.8 84.6% (6.3) 0.07x 2011/12 H1 268.7 77.3 28.8% 71.5 92.5% 59.7 N/A (i) Net Revenue is revenue less excise duties for activities reported as continuing at the date of reporting (ii) EBITDA is earnings before exceptional items, interest, tax, depreciation & amortisation and includes discontinued activities. EBITDA margin relates to continuing activities (iii) Net debt excludes fair value of SWAP instruments (iv) Calculated in accordance with the Committed Revolving Facility agreement (May 2007) Cash Generative Business  Bank Debt Facility: € 185 million, Drawn: € 75 million, Maturity: May 2012. Net Cash surplus: € 59.7million - 31 Aug 11  Low effective tax rate (forecast c. 15% per annum )  Low capex requirements: well-invested asset base  Manageable pension deficit ( € 23.7m at 31 August 2011) Slide 18

2011/12 H1 | Financial Highlights  Operating profit up 7.8% to € 67.4m  Operating margin improved by 3.1ppts to 25.1%  Strong free cash flow of € 71.5m (92.5% of EBITDA)  Net cash surplus of € 59.7m  Adjusted diluted EPS increased 7.1% to 16.5 cent  Dividend increase of 11% to 3.67 cent per share  Re-affirming operating profit guidance range of € 108m to € 115m for 2011/12 full year Slide 19