Net sales (€m)

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Roadshow Presentation
Roadshow
Presentation
Roadshow
Presentation
InitialRoadshow
Public Offering
- June 2001
Presentation
Initial
Public
Offering
June
2001
Initial Public Offering - June 2001
Initial Public Offering - June 2001
Roadshow
1
Key offering features
Listing
Mercato Telematico Azionario – Milan
Structure
Offer of 12,705,000 secondary shares
12% greenshoe (1,524,600 shares)
Offering
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%)
Selling
Shareholders
Lock-up
No. of
Oustanding
Shares
Gioch S.A. Société Anonyme
Wessanen Europa B.V.
180 days
29,040,000
Global
Co-ordinators
Sponsor and
Lead Manager
of Retail offer
2
Transaction timetable
15 June
Start of roadshow and bookbuilding
22 June
Set maximum retail price
25 June
Start of OPV (retail offer)
28 June
End of roadshow, institutional bookbuilding and OPV
29 June
Pricing and allocation
5 July
First day of trading
3
Shareholding structure
Pre-IPO
Alicros S.r.l.
51%
Post-IPO
Wessanen
Europa B.V.
35%
Alicros S.r.l.
51%
Free Float
49%
Gioch S.A.
14%
The post-IPO shareholding structure illustrated is based on the
assumption of the full exercise of the greenshoe
4
Group
overview
Group
overview
Group overview
Group overview
Marco P. Perelli-Cippo
Chief Executive Officer
Roadshow
5
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
6
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
7
The diversification phase
Acquisition of
Cynar,
Biancosarti,
Crodino,
Lemonsoda,
Oransoda
1995
Acquisition of
distribution
rights in Italy
for
Jägermeister
Acquisition of
distribution
rights in Brazil
for Clan
McGregor
19
96
Acquisition of
distribution
rights in Italy for
Glenfiddich and
Grant’s
1
9
9
7
Acquisition
of Ouzo 12
and
Cinzano
19
98
Acquired 10%
of Skyy Spirits
LLC
Launch of
Pelmosoda
1
9
9
9
Acquisition of
distribution
rights in Italy
for Lipton Ice
Tea
Acquisition of
Dreher, Old Eight,
Drury’s,
Liebfraumilch
and Gregson’s
2
0
0
0
2001
Acquisition of
distribution
rights in Brazil
for Glenfiddich,
Grant’s and
Jägermeister
8
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
9
Brazil: the latest
successful acquisition
In January 2001, Campari acquired a number of leading brands in
Latin American countries
Number 1 Brazilian aguardente with a 32.9% market share
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
10
A successful growth story
Net sales (€m)
434.0
366.0
Impressive growth over last
years (CAGR of 14%)
Strong profitability with EBITDA
margins above 20%
333.5
Balanced brand portfolio
spirits (54.7% of sales)
EBITDA (€m)
wines (16.4% of sales)
104.7
85.7
1998
86.4
1999
soft drinks (28.9% of sales)
Diverse geographic presence
(foreign sales represent 43% of
total sales)
2000
11
Brand
portfolio,
marketing
&
distribution
Brandportfolio,
portfolio,
marketing
& distribution
Brand
marketing
& distribution
Brand
portfolio,
marketing
& distribution
Stefano Saccardi
Officer Legal Affairs and
Business development
Roadshow
12
Current brand portfolio
Spirits
Wines
Soft drinks
Cinzano
Liebfraumilch
Own brands
Campari
CampariSoda
Cynar
Biancosarti
Ouzo 12
Dreher
Old Eight
Drury’s
Gregson’s
Crodino
Lemonsoda
Oransoda
Pelmosoda
Crodo
Riccadonna
Henkell Trocken
Lipton Ice Tea
Granini
Third party
Jägermeister
Skyy1
Grand Marnier
Grant’s
Glenfiddich
Clan McGregor
Gorbatschow
1 Minority stake and worldwide distribution rights (excl. US)
13
Spirits: strong brands to
tap markets worldwide
Spirits represent 54.7% of total 2000 net sales
2000 Spirits net sales by market
Italy
50.4%
2000 Spirits net sales by product
EU
28.6%
CampariSoda
28.0%
Campari
50.4%
Americas
12.6%
RoW
3.1%
Rest of
Europe
5.3%
Jägermeister
5.8%
Cynar
5.1%
Ouzo 12
Other 3.8%
Products
6.9%
14
Spirits: a portfolio of
successful brands
Own Brands
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
15
Spirits: a portfolio of
successful brands
Third party brands
Brands
Markets
Description
Italy, Brazil
Widely recognised top of the line
premium bitter
Worldwide
(excl. US)
One of the fastest growing vodka brands
in the US, distributed all over the world
Germany
Prestigious orange based French liqueur
Italy, Brazil
Scotch Whiskies with high brand
awareness
Switzerland
Popular vodka in Germany
16
Wines: a division with
high potential
Wines represent 16.4% of total 2000 net sales
2000 Wines net sales by market
EU
52.5%
Italy
8.5%
Americas
9.4%
2000 Wines net sales by product
Cinzano
Sparkling Wines
45.7%
Cinzano
Vermouth
35.0%
Rest of
Europe
9.7%
RoW
19.9%
Other
Products
19.3%
17
Wines:
market leaders
Own brands
World’s No.2 Vermouth and a leading
sparkling wine in Italy and Germany
Third party brands
Markets
Worldwide
(excl. Italy, US, UK,
France, Romania)
Switzerland
Description
The best selling Asti sparkling
wine in Australia and New
Zealand
Market leader in German
sparkling wines
18
Soft drinks:
a growing segment
Soft drinks represent 28.9% of total 2000 net sales
2000 Soft drinks net sales
by product
Crodino
40.5%
Lemonsoda,
Oransoda,
Pelmosoda
28.0%
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
Other
products
9.0%
Lipton Ice Tea
22.5%
19
Soft drinks:
market leaders
Own brands
Most popular non-alcoholic single-serving aperitif
Consumption patterns and returns similar to those of alcoholic
aperitifs
Leading carbonated fruit drinks with natural ingredients
High-quality mineral water brands (Lisiel, Valle D’oro and Cesa)
Full line of soft drinks
Third party brands (Italy)
Highly successful and popular brand in its category
20
A market driven
company
Advertising & Promotion (A&P) is a fundamental driver of success for
Campari’s business model
A&P 1998–2000
79.6
62.4
62.4
18.7
17.0
1998
A&P(€m)
1999
18.3
2000
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
% of net sales
21
A marketing driven
company
Advertising campaigns are global, but effectively tailored to local markets
Media
Consumer
promotions
Sponsorships
22
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
23
Group
financials
Group
financials
Group financials
Group financials
Paolo Marchesini
Chief Financial Officer
Roadshow
24
A track record of
high sales
Total net sales 98-00 (€m)
54.7%
59.8%
66.0%
2.1%
31.9%
7.1%
33.1%
1998
1999
Spirits
Wines
16.4%
28.9%
Soft Drinks
2000
(€m)
1998
1999
2000
CAGR (%)
Net Sales
Growth (%)
Trading Margin2
as % of net sales
EBITDA
as % of net sales
EBIT
as % of net sales
333.5
na
103.6
31.1
85.6
25.7
72.0
21.6
366.0
9.7
104.7
28.6
86.4
23.6
66.9
18.3
434.01
18.6
123.83
28.5
104.7
24.1
85.3
19.7
14.1
1 Include €3.0m deriving from production of Smirnoff ICE, on behalf of UDV
2 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
9.3
10.6
8.8
25
Spirits
segment overview
Net sales 98-00 (€m)
Trading margin 98-00 (€m)
236.0
220.1
218.8
1998
1999
2000
(€m)
Net Sales
Trading margin
as % of net sales
as % of Group trading margin
83.1
81.8
1998
1999
89.8
2000
1998
1999
2000
220.1
218.8
236.0
83.1
37.8
80.2
81.8
37.4
78.1
89.8
38.1
73.3
26
Wines
segment overview
Net sales 98-00 (€m)
Trading margin 98-00 (€m)
70.7
14.1
26.1
4.7
7.1
1998
1.0
1999
2000
(€m)
Net Sales
Trading margin
as % of net sales
as % of Group trading margin
1998
1999
2000
1998
1999
2000
7.1
26.1
70.7
1.0
13.5
0.9
4.7
17.9
4.5
14.1
20.0
11.5
27
Soft Drinks
segment overview
Net sales 98-00 (€m)
121.2
Trading margin 98-00 (€m)
124.3
19.6
2000
1998
18.3
18.7
1999
2000
106.3
1998
1999
(€m)
Net sales
Trading margin
as % of net sales
as % of Group trading margin
1998
1999
2000
106.3
19.6
18.4
18.9
121.2
18.3
15.1
17.4
124.3
18.7
15.0
15.2
28
A strong financial base
to fuel continuing growth
(€m)
Cash
Bank debt
Debt due to real estate leasing
and other financial debt
Net cash
Marketable securities
Net cash and marketable securities
Net Equity
1998
1999
2000
152.1
134.2
167.7
(1.9)
(13.0)
(11.5)
(19.7)
(18.7)
(16.9)
130.5
102.5
139.3
47.0
19.1
48.9
177.5
121.6
188.2
336.2
368.8
398.7
29
Strategy
and
conclusion
Strategy
and
conclusion
Strategy and conclusion
Strategy and conclusion
Marco P. Perelli-Cippo
Chief Executive Officer
Roadshow
30
Climbing the ladder of
global leadership
Rank
Company
No. of top 100
premium spirit brands
No. of top 100
premium spirit brands
1
2
3
4
5
6
7
8
9
10
UDV (Diageo)
Pernod Ricard
Allied Domecq
Bacardi
Brown-Forman
V&S Vin & Spirit AB
Suntory
Jim Beam Brands
Campari
Eckes AG
Total top 10
17
12
11
5
4
2
5
3
3
4
66
63.3
26.8
26.7
25.8
11.8
8.3
7.7
7.3
6.2
5.7
189.5
11
12
13
14
15
Tequila Cuervo SA
William Grant
De Kuyper BV
DestileriaSerralles
Constellation Brands
Total top 15
Other companies
Total top 100
1
2
1
1
2
73
27
100
5.5
5.2
4.7
4.3
3.2
212.3
43.6
255.9
Source: Impact Databank, February 2001
31
Campari’s competitive
positioning
Global
category
leadership
Portfolio of
strong markets
or brands
Regional, single or
niche product
powerhouse
Local
market/second
ary brands
Diageo
Allied
Domecq
Brown
Forman
Constellation
Brands
Pernod
Bacardi
Ricard
V&S
Eckes
Category leadership in
aperitifs
Niche global brands
Strong local market
positions
Jim
Beam
Brands
De
Kuyper
32
Reasons for Campari’s
continued success
Strong brands in a well balanced
portfolio
High margins and healthy financial
position
Presence in markets with favourable
income patterns
Turnaround and value creation skills
33
Strategy
Campari intends to continue to deliver solid growth ...
Organic growth
External growth
Consolidation of the established
business
Selective strategic acquisitions
Continue revitalisation of Cinzano
Continue monitoring attractive
acquisition candidates
Target emerging markets
(such as Eastern and Central Europe
and Asia)
Strong financial position capable of
supporting acquisition strategy
Line extension of selected brands
… while maintaining focus on costs
34
Investment highlights
Top quality management
Innovative marketing
Proven track record M&A
Disciplined cost control
World class brands and market
positions
35
36
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