Roadshow1 Roadshow Presentation Initial Public Offering - June 2001 Roadshow Presentation Initial...
36
Roadshow 1 Roadshow Presentation Initial Public Offering - June 2001 Roadshow Presentation Initial Public Offering - June 2001 Roadshow Presentation Initial Public Offering - June 2001 Roadshow Presentation Initial Public Offering - June 2001
-
Upload
sydney-barker -
Category
Documents
-
view
227 -
download
1
Transcript of Roadshow1 Roadshow Presentation Initial Public Offering - June 2001 Roadshow Presentation Initial...
Roadshow 1
Roadshow PresentationInitial Public Offering - June 2001
Roadshow PresentationInitial Public Offering - June 2001
Roadshow PresentationInitial Public Offering - June 2001Roadshow Presentation
Initial Public Offering - June 2001
2
Key offering features
Structure Offer of 12,705,000 secondary shares12% greenshoe (1,524,600 shares)
Lock-up 180 days
Sponsor and Lead Manager of Retail offer
Mercato Telematico Azionario – MilanListing
Global Co-ordinators
Global offering of 43.75% of the outstanding shares to:Institutional investors (including Rule 144A placement into the US)Italian retail (“OPV”) of minimum 3,200,000 shares (25.2%)
Offering
Gioch S.A. Société Anonyme Wessanen Europa B.V.
Selling Shareholders
29,040,000No. of
Oustanding Shares
3
Transaction timetable
28 June End of roadshow, institutional bookbuilding and OPV
Start of roadshow and bookbuilding15 June
First day of trading5 July
Pricing and allocation29 June
Start of OPV (retail offer)25 June
Set maximum retail price22 June
4
Pre-IPO
Gioch S.A.14%
Wessanen Europa B.V.
35%
Alicros S.r.l. 51%
Shareholding structure
The post-IPO shareholding structure illustrated is based on the assumption of the full exercise of the greenshoe
Post-IPO
Alicros S.r.l. 51%
Free Float49%
Roadshow 5
Group overviewGroup overviewGroup overview
Marco P. Perelli-CippoChief Executive Officer
Group overview
6
Campari Group: a leader in the beverage sector
Italy’s largest (ninth largest globally) producer and distributor of branded spirits
The spirits portfolio includes three of the top 100 premium brands (Campari, CampariSoda, Cynar)
Cinzano is the second best-selling brand in the global vermouth category
The three largest markets are Italy, Germany and Brazil
A distribution network covering more than 190 countries worldwide
An attractive portfolio of third party brands completes its quality product offering
7
A long history of tradition and expansion
1860 Gaspare Campari invented the Campari formula and founded the business
1904 Established production facilities in Milan. Beginning of industrial phase
1932 Launch of CampariSoda
1950 Beginning of international expansion
1995 Beginning of acquisition activity
8
The diversification phase
2000
Acquisition of distribution
rights in Brazil for Glenfiddich,
Grant’s and Jägermeister
1996
Acquisition of distribution
rights in Italy for Glenfiddich and
Grant’s
1997
Acquisition of distribution
rights in Brazil for Clan
McGregor
1999
Acquisition of Ouzo 12
and Cinzano
Launch of Pelmosoda
1998
Acquired 10% of Skyy Spirits
LLC
Acquisition of distribution
rights in Italy for Lipton Ice
Tea
1995
Acquisition of Cynar,
Biancosarti, Crodino,
Lemonsoda, Oransoda
Acquisition of distribution
rights in Italy for
Jägermeister
Acquisition of Dreher, Old Eight,
Drury’s, Liebfraumilch and
Gregson’s
20012001
9
Cinzano: awakening the “sleeping beauty”
In November 1999, Campari acquired Cinzano from UDV
The Cinzano line is made up of vermouths and sparkling wines
Cinzano is a truly global brand with a 250 year history
Distributed in over 100 countries, Cinzano is the world’s no.2 vermouth and is also a leading brand in sparkling wines
With Cinzano, Campari is proving its capability to create value by revitalising the brand through a focused and unique marketing strategy
10
Number 2 Brazilian whisky with a 17.9% market share
Number 3 Brazilian whisky with a 9.1% market share
Number 1 Uruguayan whisky with a 22.9% market share
Number 7 Brazilian sweet wine
Number 1 Brazilian aguardente with a 32.9% market share
Brazil: the latest successful acquisition
In January 2001, Campari acquired a number of leading brands in Latin American countries
11
A successful growth story
Impressive growth over last years (CAGR of 14%)
Strong profitability with EBITDA margins above 20%
Balanced brand portfolio
spirits (54.7% of sales)
wines (16.4% of sales)
soft drinks (28.9% of sales)
Diverse geographic presence (foreign sales represent 43% of total sales)
Net sales (€m)
EBITDA (€m)
434.0
366.0333.5
85.7 86.4
104.7
1998 1999 2000
Roadshow 12
Brand portfolio, marketing & distributionBrand portfolio, marketing & distribution
Stefano Saccardi
Brand portfolio, marketing & distribution
Officer Legal Affairs and Business development
Brand portfolio, marketing & distribution
13
Current brand portfolio
Soft drinksWinesSpirits
Own brands
CampariCampariSoda
CynarBiancosarti
Ouzo 12Dreher
Old EightDrury’s
Gregson’s
CinzanoLiebfraumilch
CrodinoLemonsodaOransoda
PelmosodaCrodo
1 Minority stake and worldwide distribution rights (excl. US)
Third party
JägermeisterSkyy1
Grand MarnierGrant’s
GlenfiddichClan McGregorGorbatschow
RiccadonnaHenkell Trocken
Lipton Ice TeaGranini
14
Spirits: strong brands to tap markets worldwide
2000 Spirits net sales by market 2000 Spirits net sales by product
Spirits represent 54.7% of total 2000 net sales
Americas12.6%
EU28.6%
Italy50.4%
RoW3.1%
Rest ofEurope
5.3%
Jägermeister5.8%
CampariSoda28.0%
Campari50.4%
Cynar5.1%
OtherProducts
6.9%
Ouzo 123.8%
15
Group’s flagship brand sold in 190 countries around the world
Group’s second most important brand, with a highly loyal consumer base
Traditional Italian brand with strong positions in selected international markets and potential for growth
Worldwide leader in the Ouzo category (particularly strong in Greece and Germany)
Fourth Italian aperitif by sales with a loyal consumer base
Spirits: a portfolio of successful brands
Own Brands
16
Widely recognised top of the line premium bitter
Italy, Brazil
One of the fastest growing vodka brands in the US, distributed all over the world
Worldwide (excl. US)
Prestigious orange based French liqueur Germany
Popular vodka in GermanySwitzerland
Spirits: a portfolio of successful brands
Scotch Whiskies with high brand awareness
Italy, Brazil
Third party brands
DescriptionBrands Markets
17
Wines: a division with high potential
2000 Wines net sales by market 2000 Wines net sales by product
Wines represent 16.4% of total 2000 net sales
Americas9.4%
EU52.5%
Italy8.5%
RoW19.9%
Rest ofEurope
9.7%
Cinzano Vermouth
35.0%
OtherProducts
19.3%
Cinzano Sparkling Wines
45.7%
18
The best selling Asti sparkling wine in Australia and New Zealand
Worldwide (excl. Italy, US, UK, France, Romania)
Market leader in German sparkling wines
Switzerland
World’s No.2 Vermouth and a leading sparkling wine in Italy and Germany
Wines: market leaders
DescriptionMarkets
Third party brands
Own brands
19
Soft drinks: a growing segment
2000 Soft drinks net sales by product
Soft drinks represent 28.9% of total 2000 net sales
Sales are mainly concentrated in Italy
From 1998 to 2000 net sales have grown at a CAGR of 8.2% and volumes at a CAGR of 4.8%
Crodino has significantly improved its leadership position since it was acquired
Crodino40.5%
Lipton Ice Tea22.5%
Other products
9.0%
Lemonsoda,Oransoda,Pelmosoda
28.0%
20
Highly successful and popular brand in its category
Leading carbonated fruit drinks with natural ingredients
Full line of soft drinks
Soft drinks: market leaders
Most popular non-alcoholic single-serving aperitifConsumption patterns and returns similar to those of alcoholic aperitifs
Third party brands (Italy)
Own brands
High-quality mineral water brands (Lisiel, Valle D’oro and Cesa)
21
62.4 62.4
79.6
1998 1999 2000
A market driven company
Image is key
A&P is a crucial element of Campari’s marketing strategy
Through A&P, our distinctive values are highlighted
quality
prestige
dynamism
image
brand power
A&P 1998–2000
Advertising & Promotion (A&P) is a fundamental driver of success for Campari’s business model
A&P(€m) % of net sales
18.317.0
18.7
22
A marketing driven company
Media
Advertising campaigns are global, but effectively tailored to local markets
Sponsorships
Consumer promotions
23
Global distribution coverage
Distribution in over 190 countries
Direct networks where critical mass has been achieved (i.e. Italy, Brazil, Switzerland and Germany)
Joint-Ventures with qualified operators in selected markets (Benelux)
The best independent distributors everywhere else
Roadshow 24
Group financialsGroup financialsGroup financials
Paolo MarchesiniChief Financial Officer
Group financials
25
A track record of high sales
Total net sales 98-00 (€m)
33.1% 28.9%31.9%2.1% 7.1%
16.4%
54.7%
59.8%66.0%
1998 1999 2000
Spirits
Wines
Soft Drinks
(€m) 1998 1999 2000 CAGR (%)
Net Sales 333.5 366.0 434.01 14.1Growth (%) na 9.7 18.6
1 Include €3.0m deriving from production of Smirnoff ICE, on behalf of UDV2 Trading margin: Net sales - Cost of goods – A&P – Sales and Distribution costs 3 it includes €1.2m of profits deriving from production of Smirnoff ICE, on behalf of UDV
EBITDA 85.6 86.4 104.7 10.6as % of net sales 25.7 23.6 24.1EBIT 72.0 66.9 85.3 8.8as % of net sales 21.6 18.3 19.7
Trading Margin2 103.6 104.7 123.83 9.3as % of net sales 31.1 28.6 28.5
26
Spirits segment overview
Net sales 98-00 (€m) Trading margin 98-00 (€m)
(€m) 1998 1999 2000
Net Sales 220.1 218.8 236.0
Trading margin 83.1 81.8 89.8as % of net sales 37.8 37.4 38.1as % of Group trading margin 80.2 78.1 73.3
220.1 218.8
236.0
1998 1999 2000
83.1 81.889.8
1998 1999 2000
27
Wines segment overview
Net sales 98-00 (€m) Trading margin 98-00 (€m)
(€m) 1998 1999 2000
Net Sales 7.1 26.1 70.7
Trading margin 1.0 4.7 14.1as % of net sales 13.5 17.9 20.0as % of Group trading margin 0.9 4.5 11.5
7.1
26.1
70.7
1998 1999 2000
1.04.7
14.1
1998 1999 2000
28
Soft Drinks segment overview
Net sales 98-00 (€m)
124.3121.2
106.3
1998 1999 2000
Trading margin 98-00 (€m)
(€m) 1998 1999 2000
Net sales 106.3 121.2 124.3
Trading margin 19.6 18.3 18.7as % of net sales 18.4 15.1 15.0as % of Group trading margin 18.9 17.4 15.2
18.718.319.6
1998 1999 2000
29
A strong financial base to fuel continuing growth
Cash 152.1 134.2 167.7
Bank debt (1.9) (13.0) (11.5)
Debt due to real estate leasing (19.7) (18.7) (16.9)and other financial debt
Net cash 130.5 102.5 139.3
Marketable securities 47.0 19.1 48.9
Net cash and marketable securities 177.5 121.6 188.2
Net Equity 336.2 368.8 398.7
(€m) 1998 1999 2000
Roadshow 30
Strategy and conclusionStrategy and conclusionStrategy and conclusion
Marco P. Perelli-CippoChief Executive Officer
Strategy and conclusion
31
Rank CompanyNo. of top 100
premium spirit brandsNo. of top 100
premium spirit brands
Climbing the ladder of global leadership
9 Campari 3 6.2
Source: Impact Databank, February 2001
1 UDV (Diageo) 172 Pernod Ricard 123 Allied Domecq 114 Bacardi 55 Brown-Forman 46 V&S Vin & Spirit AB 27 Suntory 58 Jim Beam Brands 3
10 Eckes AG 4Total top 10 66
11 Tequila Cuervo SA 112 William Grant 213 De Kuyper BV 114 Destileria Serralles 115 Constellation Brands 2
Total top 15 73Other companies 27Total top 100 100
63.326.826.725.811.8
8.37.77.3
5.7189.5
5.55.24.74.33.2
212.343.6
255.9
32
Local market/secondary brands
ConstellationBrands Eckes
DeKuyper
Portfolio of strong markets or brands
AlliedDomecq
PernodRicard
Bacardi
Regional, single or niche product powerhouse
BrownForman
V&SJim
BeamBrands
Category leadership in aperitifsNiche global brands Strong local market positions
Global category leadership Diageo
Campari’s competitive positioning
33
Reasons for Campari’scontinued success
Turnaround and value creation skills
High margins and healthy financial position
Presence in markets with favourable income patterns
Strong brands in a well balanced portfolio
34
Strategy
Campari intends to continue to deliver solid growth ...
… while maintaining focus on costs
Organic growth External growth
Consolidation of the established business
Continue revitalisation of Cinzano
Target emerging markets (such as Eastern and Central Europe
and Asia)
Line extension of selected brands
Selective strategic acquisitions
Continue monitoring attractive acquisition candidates
Strong financial position capable of supporting acquisition strategy
35
Investment highlights
Disciplined cost control
Innovative marketing
Proven track record M&A
World class brands and market positions
Top quality management
36
