PRELIMINARY RESULTS YEAR ENDED 31 st DECEMBER 2016 Tim Warrillow - PowerPoint PPT Presentation

PRELIMINARY RESULTS YEAR ENDED 31 st DECEMBER 2016 Tim Warrillow – Co-founder and CEO Andrew Branchflower – Finance Director

HIGHLIGHTS Momentum continued from 2015, exceptional growth in 2016 Net revenue and growth by region £m FY 16 FY 15 Growth Growth Revenue 102.2 59.3 73% 118% Gross profit 56.4 30.9 83% Growth Gross margin 55.2% 52.1% 39% Growth EBITDA 35.8 18.2 97% 55% EBITDA margin 35.1% 30.7% Growth Continuing to deliver to strategy • 88% • Strong growth across the regions, with continued exceptional growth in the UK Improved gross and EBITDA margins through • operational efficiencies and forex upside Continuing to extend our global category- leading • position against our competitive set • Spirit premiumisation and mixability trend is gathering pace

REGIONAL HIGHLIGHTS Regional highlights (i) • 44% of total revenue generated in UK, growth of 118% • Strong on-trade growth, grew to 22% value share of mixer category UK • Exceptional off-trade growth, grew to 24% value share of mixer category • 150ml can is performing very strongly • 30% of total revenue generated in Continental Europe • Growth of 39% across region aided by strengthening Euro; 24% growth on a like for like basis • Lapping strong comparatives from FY15 when a number of Continental significant new retail listings were won Europe • Strong sales growth in important Western European countries, including Italy, Germany and Austria, driven by the premium gin and tonic trend continuing to gain momentum across the region

REGIONAL HIGHLIGHTS Regional highlights (ii) • 21% of total revenue generated in USA • Growth of 55%, aided by strong USD; like for like growth of 36% USA • Continued strong Ginger Beer and Tonic flavours growth • Drove 68% of growth in US Tonic category at retail from a value share of 5% • New retail listings, largely landing later in the year • 5% of total revenue generated in RoW region • Growth of 88% • Key territories remain Australia and Canada, both of RoW which grew by > 100% in 2016 • Potential for growth in medium term but not expected to be a significant driver of growth in the short term

FINANCIAL REVIEW Income statement (i) – Overview £m FY16 FY15 Growth Revenue 102.2 59.3 73% Revenue of £102.2m • Growth of 73% on FY15  Gross profit 56.4 30.9 83% Gross margin 55.2% 52.1% Gross profit margin of 55.2 % • EBITDA 35.8 18.2 97% Vs 52.1% in FY15  EBITDA margin 35.1% 30.7% EBITDA of £18.2m at a margin of • 35.1% Net revenue split by region – FY16 Vs 30.7% in FY15  RoW 5% USA 21% UK 44% Continental Europe 30%

FINANCIAL REVIEW Income statement (ii) – Forex : like for like analysis Reported Like-for-Like Reported £m FY 15 FY 16 Growth FY 16 Growth Revenue 59.3 96.3 62% 102.2 73% Gross profit 30.9 51.5 67% 56.4 83% Gross margin 52.1% 53.5% 55.2% EBITDA 18.2 33.4 84% 35.8 97% EBITDA margin 30.7% 34.7% 35.1% Revenue of £102.2m EBITDA of £35.8m at a margin of 35.1% • • FX upside as Euro and Dollar each On a like-for-like basis EBITDA margin in FY16   strengthened by 13% on average across is 34.7% FY16 On a like-for-like basis, FY16 underlying   Additional £5.9m of revenue generated due operating expenses were 18.8% of revenue, and to FX upside, without which growth would in H2 16 specifically these were 16.9% of have been 62% revenue, illustrating the extent of the Gross profit margin of 55.2% operational gearing in latter stages of the year • Reported operating expenses include a £1.6m FX  On a like for like basis, FY16 GP% is 53.5%,  expense related to hedging policy vs 52.1% in FY15, improvement driven by product cost and logistic efficiencies.

FINANCIAL REVIEW Income statement (iii) – Other costs Reported £m FY 16 FY 15 Finance expenses • EBITDA 35.8 18.2  Bank debt refinanced in Jan16 resulting in reduced finance expense going forward Depreciation (0.2) (0.1) • LTIP Charges Amortisation (0.7) (0.7) It is expected that these will build going forward  LTIP charges (0.5) <(0.1) EPS and dividend • Operating profit 34.4 17.3  Normalised EPS of 24.31 pence in FY16, growth Finance expenses (0.1) (0.5) of 101% on FY15 Final dividend of 4.71 pence per share, bringing  Profit before Tax 34.3 16.8 total dividend for FY16 to 6.25 pence per share, increase of 103% on FY15 Tax (6.8) (3.5) Profit after Tax 27.5 13.3 Normalised EPS 24.31 12.10 (pence) Total dividend 6.25 3.08 (pence)

FINANCIAL REVIEW Balance Sheet Cash flow £m FY16 FY15 £m FY16 FY15 PPE 1.1 0.6 EBITDA 35.8 18.2 Intangibles 43.1 43.9 Working Capital mvmt (10.1) (5.3) Stock 10.5 6.4 Operating Cash flow 25.7 12.9 Receivables 30.4 16.8 Conversion 72% 71% Derivatives (0.9) (0.3) Tax (5.1) (2.5) Cash 33.0 17.6 Capital expenditure (0.8) (0.4) Bank loan interest and (0.1) (0.7) Creditors (16.1) (9.3) repayment Corporation tax (3.8) (1.6) Dividends paid (4.4) (1.2) Gross debt (6.1) (6.1) Net Cash flow 15.3 8.1 Deferred tax (2.2) (2.6) Operating Cash flow conversion of 72% • Net Assets 89.0 65.4 Consistent Operating cash flow conversion year on  Net Cash 26.9 11.6 year  Working capital profile consistent year on year at Net cash of £26.9m • 23% of revenue Cash of £33.0m offset by £6.1m of gross  debt

STRATEGIC CONSIDERATIONS • Strong proof that the mixer category is unusually susceptible to high premium penetration Capitalising on • One of the fastest growing carbonated soft drinks categories market trends • Strengthening premiumisation and mixability trends EY Study 2014 UK 2014 UK 2016 Belgium 2016 46% 26% 16.5% 5% Predicted 16.5% mixer 5% premium 26% premium 46% premium category premium UK mixer category at retail UK mixer category at retail Belgium mixer category at retail penetration at maturity (£1.6bn)

STRATEGIC CONSIDERATIONS • On-going review of international distribution partners • Primary bottling partner invested in new site to double Outsourced capacity business model • Flexibility in model – bottling/canning across four locations in UK and Europe • Currently reviewing international bottling opportunities, particularly in Europe • New bespoke embossed bottle • Aromatic Tonic launch in June16 New product • Launch of Clementine Tonic with Sergio Herman in Belgium development • Launch Elderflower and Med Tonic 150ml cans in UK • Dark spirits strategy

SUMMARY & OUTLOOK Continued strong performance driven by implementation of core strategy • Revenue & EBITDA growth is underpinned by robust margins, both on a • reported and constant currency basis • Momentum in all four main regions continues Significant growth opportunities remain in both On & Off Trade and across • flavours and formats Board confident of outlook for 2017 and beyond •

APPENDIX Introduction • Key strengths •

INTRODUCTION TO FEVER-TREE Launched by Charles Rolls and Tim Warrillow in • 2005 Simple premise: •  A significant and long term growth in premium spirits  Not matched by any premium offering in mixers category  Fever-Tree was launched at ideal moment to provide a quality mixer range to fill the vacuum The world’s leading premium mixer brand with • 200 million bottles and 27 million cans sold in 2016 Now in over 55 countries worldwide, with 56% of • sales overseas “No brand commands its category like Fever-Tree. Its grip on the world’s best bars has only tightened since last year” Drinks International 2016 Brands Report

KEY STRENGTHS Market leading • First mover advantage brand with • Leading premium mixer brand around international reach the world Clearly • Ingredients, taste, packaging and story differentiated • Acclaimed product proposition premium product Proven business • Scalable outsourced business model model and • Strong founder-led management team management team • Global mixer market in early stages of Significant growth premiumisation opportunities • Potential addressable market of approx £1.6bn RSV (EY, 2014) Growth underpinned by • Higher cash and % margin for the trade strong margins and spirits partners throughout value chain