BiG 2.0 23 November, 2015en.mbws.com/sites/default/files/mbws_big_2.0_vf_eng.pdf · 2017-01-03 ·...

BiG 2.023 November, 2015

Contents

2MARIE BRIZARD WINE & SPIRITS

1. 2015 key achievements and facts

2. BIG 2.0

Update on Rationalization

Update on Optimization

Update on Growth

3. Stock warrant exchange offer

12015 key achievements and facts

Strengthening of internal and operational controls

• Approval of 2014 accounts without qualification for the first time in 6 years

• Full operational control regained over the Group’s activities in Bulgaria

• Reimbursement of a €31 million carry-back receivable in February 2015

• Confirmation by the DVNI (French National and International Audit Office) ofthe terms of an agreement ending the dispute between the Group and the taxauthorities on the deductibility of the interest charges on the FRN debt

• €20.4m tax relief that were not provisioned in the Group’s accounts

• Start of the process of early exit from the business continuance plan of theFrench subsidiary, Marie Brizard & Roger International

4

Stock market normalization

• Return to Compartment B after the Euronext Special Compartment

• Inclusion in the EnterNext PEA-PME 150 index

• Share price change year to date* (base: 100):

As of 13 November, 2015

173,1

75

100

125

150

175

200

100

5

A new name for the Group:Marie Brizard Wine and Spirits, MBWS

• To capitalize on:

• Strong and meaningful roots: France and Bordeaux

• A story dating back to 1755

• Recognized know-how

• A world renowned name: distributed in around 100 countries

• A perfect match with the mission laid out in BIG 2018 1.0 and 2.0

We bring value by offering our customers and our consumers

trustworthy, bold, flavorful brands and experiences

• To move forward within a renewed framework for employees, and

• To create and develop a new corporate culture.

6

A new Group culture based on our four Values now under deployment

7

BiG 2018 1.0 reminder

8

H1 2015 results

€ thousands 30 June

2015

30 June

restated

Δ

Sales 348.0 329.1 5.7%

Sales excl. excise duty 222.7 221.4 0.6%

Gross margin 73.5 71.0

Gross margin % 33.0% 32.1% + 0.9 pt

EBITDA excl . IFRIC 21 impact 2.6 1.9

EBITDA 1.8 1.1

EBITDA margin 0.8% 0.5% + 0.3 pt

Operating P/L from continuing operations (0.9) (0.7) 26.9%

Operating profi t/loss (2.2) (2.2)

Cost of debt (0.7) (0.7)

Financia l i tems (0.2) (7.1)

Attributable net profit/loss (3.2) (9.6)

• H1 2015 gross margin: €73.5m• (+3.6% vs. H1 2014), 33.0% as a percentage of sales (vs. 32.1%)

• EBITDA: €1.8m vs. €1.1m at end-June 2014• Restated for IFRIC 21, EBITDA would have been €2.6m

• Total liquidity end of June 2015: €69m

• Net cash position: €38.7m, +€35.5m vs. 30 June 2014• WCR 1: -€22m vs. 30 June, 2014 to €117m (vs. €139m)

• Frozen liabilities at 30 June 2015 before discounting: €74 m

9

Q3 2015 sales

• Key market insights:• 9M 2015 net sales in France: €144.8m, +0.2% vs. 9M 2014. Acceleration in Q3:

Q3 2015 net sales in France: €47.9m, +3.3% vs. Q3 2014• 9M 2015 net sales in Poland: - 1.7% like-for like on 9M 2014 and 9M 2015 net

sales for the Group’s core activities, excluding the scope effect: +5.8%• 9M 2015 net sales in the USA: €13.4m, -3.9% vs. 9M 2014• 9M 2015 net sales in Lithuania: €16.3m, +6.2% vs. 9M 2014• 9M 2015 net sales in Spain: €9.1m, + 3.5% like-for-like vs. 9M 2014

€ millions

- 0.8%

9 months to

09/2015

340.2 -4.5 -7.1 328.6 -5.1 2.5 326.0

9 months to

09/2014

Abandoned

contract

effect

Scope effect

9 months to

09/2014,

restated

Organic

growth

Currency

effect

2015 EBITDA Guidance: double the 2014 EBITDA figure

10

A strong trend towards market share gains

• France• Fruits and Wine: 29.2% market share1

• William Peel: 23.5%2, twice in the Top 10 most-sold FMCG products in October20153

• Sobieski: acceleration of the development, advertising campaign in Q4 2015

• Krupnik in Poland• Market share: 13.1%4

• Launch of a new model of the bottle particularly well-received by consumers• Growth in sales in 2015 YTD and +21% in October 2015 vs. October 2014

• Sobieski in the USA• Control states: growth 3 times greater vs. imported vodka segment (+2.9% vs. 1%)5

• Increase in market share by volume and by value at national level over Q2 20156

1 Source: IRI YTD P09 2015, BABV 2 Source: Nielsen YTD P09 2015, Scotch Blend -12 3 Source: Nielsen P10 15 in HMSM total self-service CPG 4 Source: Nielsen P09 2015, Vodka 5 Source: Nabca depletions 31/10/2015, Q3 2015 vs. Q3 2014 6 Source: Nielsen 13 weeks 10/10/2015, Q3 2015 vs. Q2 2015

11

2BiG 2.0


Confirmation of the Group’s ambition to be a multi-regional player at the heart of the market

• According to Canadean, the standardcategory is expected to drive more than50% of the absolute volume growth in theGroup’s 3 key markets during the 2014-2019 period:• 56% in the USA• 57% in France• And 76% in Poland

• Hence confirming the accuracy and thepotential of Marie Brizard Wine & Spirits’

positioning at the heart of the market


16,8- 3,5

26,0

22,4

68,7

2015E Rationalize Optimize Grow 2018E

480.0 - 100 70- 120450

-500


0,6

Net sales€m

EBITDA€m

M 9lc

% of net sales

BIG 1.0net sales confirmed upwards with a CAGR: 8% to 13%

BiG 2018 1.0 €420-€460m

15% EBITDA margin

BiG 2018 1.0 12% - 15 %

2018e

-

Rationalize GrowOptimize

21

3%

25

CAPEX 2016-18€50m self-

financed plan

466.7

5.2

2014A

of which

351.5core business

-

Core: +8.7Non core: -3.5

10.4

€12m CAPEX

3.5

67–

7525

28-36

Cash generated by divesture: €40m

Volume effect: 69%Mix effect: 31%

2015e

of which

360.0core business

15%

Core: +11Non core: -1

BIG 2.0 financial recap

Update on Rationalization

BiG 2.0: double the amount of divestment proceeds to €40m


Rationalize Optimize Grow

Wholesale &

retail

Impact on net

sales

~(€120m)

Impact on

EBITDA

~+€10m

Expected value

> €20m

Manufacturing

equipments

Real estate

Poland

Poland

Poland

France

Impact on net

sales

~(€100m)

Impact on

EBITDA

~+€3.5m

Expected value

> €40m

BiG 1.0 BiG 2.0

Update on optimization



EBITDA improvement on Optimization revised upwards between 2016 and 2018

• Bulk/Liquid

• Bottles & Other RMs

• Indirect purchasing

• Bottling

Sourcing

• New areas of development

• Improved strategy to address existing markets

• Partnerships with the shareholders

Route to Market

• Lean Manufacturing

Industrial best

practices

€25m Revised EBITDA improvement

between 2016 and 2018

BiG 2018 1.0

5 levers



BiG 2018 1.0: 5 levers of the optimization

Upgrade the industrial footprint

1

Better sourcing

2

Strengthened Route to Market

3

Streamline the business

4

Develop core capabilities

5



Progress Report 2.0: Upgrade of the industrial footprint

1 Vodka manufacturingInsource distillation capability and rationalize footprint

2 Fruits & Wine manufacturingSecure and upgrade to support high growth

3 Liqueur ManufacturingFondaudège transfer

4 Logistic network reconfig.Indirect purchasing synergies Moncigale

Not started Study phase / approval pending In progress Partially completed Fully completed

• Work in progress to modernize Beaucaire facility (France), fully operational early 2016

• CAPEX in 2015: €1.2m

• Lithuania: work in progress, installation to start early 2016

• Poland: under review, to start 2017• CAPEX in 2015: €3m / to come: €17m • EBITDA improvement: €10 to 12m

• Liqueur production transfer to Zizurkil & Lormont: January 2016

• Merger of William Pitters with Marie Brizard done• CAPEX in 2015: €6m / Opex saving €1.2m full year

• Warehouse consolidation• Rental and transportation cost savings• Opex savings: €0.3m

Progress report Where do we stand?



Progress Report 2.0: Better sourcing


• Scotch Whisky sourcing secured • Undergoing finalization of long-term contracts

• Raw material and bulk contract renegotiation5 Purchasing costs

Group synergies and purchasing productivity

6 Whisky sourcing strategySecure sourcing for WP




New opportunities with industrial shareholders:Sourcing

Diana Holding

Sourcing

Bottle savings

Moroccan Wine

bottling

Whisky Supply

Port Wine Bottling

Bottles and dry

materials



Progress Report 2.0: Strengthened Route to Market


• Distributors review and alignment in key markets• Asia and Duty Free senior managers in place• African route to market under review

• Focus on 9 core states• New commercial director & KAM

7 Route to Market reconfigurationFocus on US

8 Export organizationIntegrated organization / streamlined logistics




New potential opportunities with industrial shareholders: Route to market

Route to market

Distribution of MBWS brands in Morocco

Moroccan wines in

France by MBWS

Route to market in

Africa

Commercial synergies in

Spain

Wine commercial synergies in

Poland

Route To Market in

Africa



Progress Report 2.0: Streamline the business


• To be launched in 2016

• Done for French liquors 9 SKU rationalizationOn all product ranges

10 Recipe reformulationRecipe cost reduction mainly on Vodka




Progress Report 2.0: Development of core capabilities


• S&OP implementation in France and Poland• New cluster transportation network to be

implemented in January 2016

• Category management in France and Poland• Back to industry standards for the commercial

drift in France in 2015 vs. 2014

11 Commercial excellenceBest practices in category Mgt and sales

12 Sales & Operations PlanningGovernance and process best practices



France: strengthen leadership and innovate

• Strengthen William Peel and Fruits and wine leadership

• Sobieski as strong #2 vodka

• Improve pricing power

• Commercial excellence program

• Develop on-trade

• Scotch Whisky market down, while William Peel is increasing its market share

• Vodka market slowing down while Sobieski closing the gap vs. #2

• Flavoured wine market growing at a lower pace while Fruits and Wine is increasing its market share

• Increased A&P support behind pillar brands

• On-trade team organization in place

• Commercial excellence, with structuring of trade marketing team

• Reinforcement of leading brand equitiesthrough ATL

• On-trade development lead with MarieBrizard, Sobieski and Gautier

• Commercial excellence through category &revenue management as well as trademarketing

• Innovation on leading brands thanks to NPDstarting Q2 2016 and equity stretch as well aslaunch of new concepts

• Revitalization of non core brands with leadingpositions and/or highly differentiatedproposition

Current RealityBiG 2018 levers BiG 2.0 levers

BiG 2018 1.0 targets reconfirmed:• Sales: > €200m

• A&P + 50% between 2015 and 2018• Volumes: > 11m 9-L cases



Poland: a balanced leading player

• Regain #2 position in vodka

• More balanced portfolio, with the launchof William Peel and Fruits and Wine

• On-trade focus

• Improve pricing power

• Commercial excellence

• Krupnik regained #2 clear vodka rank, with13.1% market share*

• Flavored range represents 15% of currentgrowth and 5% of total sales

• Launch of William Peel and distributionbuilding, while SW category shipments toPoland increased by 60% in H1 2015

• Launch of Fruits and Wine and equity building

• Commercial & marketing management teamsprofessionalized

• Strengthening of Krupnik through distributionexcellence and flavored development

• Relaunch of Sobieski thanks to new pack andequity reinforcement

• Innovation in vodka

• COGS Improvement

• 10% market share target for William Peel

• Category building and leadership for Fruitsand Wine

• Commercial excellence through category &revenue management as well as trademarketing

Current RealityBiG 2018 levers BiG 2.0 levers

*Nielsen YTD P10

BiG 2018 1.0 revised upwards:• Sales: > €100m (vs. > €80m in 1.0)• A&P + 50% between 2015 and 2018

• Volumes: > 6.5m 9-L cases



USA: growing from a solid foundation

• Leverage USA Route To Marketreconfiguration

• Maintain national distribution throughKey Account Management

• Introduce other pillar brands

• Optimize fixed costs structure bydistributing 3rd party brands

• Booming craft trend

• Promotional pressure increasing (vodka)

• Route To Market focus implemented

• New commercial Director + Key AccountManagement

• Distribution of Kerrygold Irish Cream, TrombaTequila, Cedar Ridge American Whisky

• Relaunch of Sobieski through updated &differentiated positioning & packaging

• Supported by a strong A&P increase to raiseawareness, build equity and grow velocity by10%

• Increase distribution to reach 40% ACV andincrease visibility on shelf

• Launch of Sobieski Estate, Fruits and Wineand SHOTKA

• Re-energization of Marie Brizard

• Commercial excellence incl. better tradesupport management, distributorperformance based management and trademarketing initiatives

Current realityBiG 2018 levers BiG 2.0 levers

BiG 2018 1.0 confirmed targets:• Sales: > €50m

• A&P + 150% between 2015 and 2018• Volumes: 1.7m 9-L cases



Lithuania: expand while consolidating

• Reach #1 rank in vodka

• Launch of group pillar brands: William Peel and Fruits and Wine

• Expand portfolio to 3rd party brands

• Expand cluster’s reach

• Promotional pressure increasing

• Market entry of discounters expected this year

• Launch of William Peel and Fruits and Wine

• Sobieski reboot through new pack and more support in A&P

• Rejuvenated Bajoru franchise

• Continue building William Peel and Fruits and Wine

• Commercial excellence focused at more efficient spends

• Portfolio rationalization and brand migration (liqueurs and bitters)

• Grow cluster especially in Belorussia, Russia and Baltics


BiG 2018 1.0 revised upwards:• Sales: > €25m (vs. > €23m in 1.0)

• A&P + 70% between 2015 and 2018• Volumes: >2.0m 9-L cases



Spain: leveraging strong partnerships

• Disruption and innovation, launch of Shotka and Fruits and Wine

• Distribution focus

• Private label to strengthen relationships with key retailers

• Capitalize and reenergize Marie Brizard and Marques del Puerto strong equities

• Anisé market going down while Marie Brizard growing

• Share of off-trade increasing

• Private Label tenders opened

• Shotka test launched

• Fruits and Wine support increased

• Leverage Marie Brizard strong awareness through A&P and brand building activities

• Continue Shotka & Fruits and Wine development

• Develop Marques del Puerto penetration though brand rejuvenation

• Strengthen Mercadona relationship through Private Labels

• Develop border business to reach natural level for key French leading brands

• Commercial excellence to increase consumers’ reach


BiG 2018 1.0 revised upwards:• Sales: > €25m (vs. > €20m in 1.0)

• A&P + 200% between 2015 and 2018• Volumes: >0.9m 9-L cases


Update on growth

Progress Report BiG 2.0: Strong leaders expanding

• 3 brands over 3 million 9L-cases: William Peel, Sobieski and Krupnik

• 2 brands over 1 million 9L-cases: Fruits and Wine and Marie Brizard

• 2 non pillar brands able to capture global trends: Gautier and SHOTKA

• A solid portfolio of assortment brands to support pillar brands

• A consistent and differentiated portfolio of trustworthy, bold and flavorful brands

• Supported by increased A&P (+48% 2015-2018) to reach 11% of net sales on pillar brands, in line with the industry average


33


Marie Brizard


BiG 2018

Brand rejuvenation

Favorable consumer trends

Route To Market

Expand in both on and off-trade

A&P support

Current reality

#1 imported Fruit liquor in the UK (on-trade) and Australia (off-trade)

Route To Market reconfiguration in all key Asian markets

DNA positioning reboot under way

SKU rationalization

BiG 2.0 levers

Global relaunch in Q2 2016

Strong DNA, unique roots and recognized savoir-faire

Focus on France, Asia Pacific, DF and the USA

Other group liquor brands’ migration

2018 target

1m 9L cases


William Peel


BiG 2018

Nourish, stretch, premiumize in France

International development with a focus in Poland, Spain & Baltics

Commercial excellence to act as category captain

Current reality

Market down in France, while William Peel is growing and increasing its market share

Promising launch in Poland, Lithuania and Bulgaria

Launch of William Peel Coffee

Launch of new ATL campaign in Q4

BiG 2.0 levers

Launch of premium variants

Category captainship in France

Strong support in Poland

A&P support in line with market share in France

2018 target

3.4m 9L cases


Sobieski


BiG 2018

Price and positioning through portfolio expansion and premiumization

Media spends in key markets in line with “destination” market share

Route To Market

Current reality

New Route To Market in the USA being implemented

New positioning and pack under development

Gap with #2 in France reducing ahead of Q4 ATL

BiG 2.0 levers

Launch of new pack in 2016

Strong equity support

Full benefit from Route To Market in the USA

Strong development of Sobieski Estate especially in on-trade

2018 target

3m 9L cases


Krupnik


BiG 2018

Business as usualCurrent reality

Have not participated in price war

Regain #2 spot in clear vodka over the summer

Reboot of Krupnik pack and positioning

Flavoured range: 17% of growth and 5.4% of volumes

BiG 2.0 levers

Increase share of flavors

Continue distribution drive and commercial excellence

Continue brand equity building

2018 target

4.5m 9L cases


Fruits and Wine


BiG 2018

Strong fit with consumer trends

Growth momentum in France

Unique DNA and occasion driven and Flavors expertise

Strong A&P support

International expansion

Current reality

Now a 1 million case brand

French Market still growing but at a lower pace

Start of the international expansion

New ‘Lightheartedness’ campaign heavily supported over the 2015 summer through ATL and digital

BiG 2.0 levers

Category captainship in France

Development of on-trade

Building on successful introduction in Canada, Poland, Spain

Launch in the US, Japan and UK

2018 target

1.5m 9L cases


Maison Gautier


BiG 2018

Business as usual Current reality

Best Cognac in the world, twice over the last 12 months

Quality not recognized in its pricing

Undifferentiated positioning and packaging

Lack of investments / Limited geographical basis

BiG 2.0 levers

Consumer trends (rooted, experiential, small indulgences)

Global relaunch in 2016

Focused on the USA, Canada, France, UK and Duty Free

A&P support

2018 target

Enter the

Cognac Top10

Assortment brands


Biala DamaBajoruCapacaïbaFogo PaulistaGlenroger’s

Porto PittersCocktails PittersonSir PittersonSan José TequilaMarques del PuertoBergerCortel + RenaissanceBulgarian wines portfolio

Old Lady’sMoncigaleDubarFinezza

40

2015-2016 On Going2015 Achieved 2016 To start

3 Stock warrant exchange offer

Support operational

development

Key objectives

1

Rationalize capital structure

2

Generate a first capital increase of up to €110m¹ in the shortterm (2016) to:

facilitate exit from the business continuation plan …

… while preserving flexibility to finance MBWS’s developmentplan

Generate a second capital increase in the medium term to:

finance potential strategic development opportunities in linewith BiG 2.0 objectives

soften immediate dilution for current shareholders

Simplify MBWS capital structure by creating a single tranche ofwarrants

Improve liquidity for warrants holders

1 In maximum case of 5.5m BSA 2015 issued and exercised

42

Number of warrants to be issued

Depending on the parity approved by the EGM (5 January, 2016) and the success rate of the

offer to a limit of 5.5m

1 BSA 2023 per BSA 2015,

i.e. maximum of 5.5m

Issuance conditionsAs part of the simplified public

exchange offerIn case of exercise of the BSA 2015 before March 31, 2016

Exercise price €20 €25

Maturity 31 December, 2016 31 December, 2023

Exercise parity 1 : 1 1 : 1

“BSA 2015” “BSA 2023”

New warrants’ main characteristics

Other n.m. Potential soft call clause

43

83110

49

138

132

248

Current warrants New warrants(maximum case of 5.5m

BSA 2015 and BSA 2023issued and exercised)

14.7%20.8%

7.8%

20.8%

22.5%

41.5%

Current warrants New warrants(maximum case of 5.5m

BSA 2015 and BSA 2023issued and exercised)

Key impacts

Maximum dilution (% of current NOSH)Maximum proceeds for MBWS (€m)

Mid term

2016

+€116mHalf of

dilution postponed

to mid term

Mid term

2016

BSA 2023

BSA 2015BSA Act.1

BSA OS

BSA 2004BSA 2006BSA Act.2

44

Conclusion


16,8- 3,5

26,0

22,4

68,7


480.0 - 100 70- 120450

-500


0,6

Net sales€m

EBITDA€m

M 9lc

% of net sales

BIG 1.0net sales confirmed with a 8% to 13% CAGR

BiG 2018 1.0 €420-€460m

15% EBITDA margin

BiG 2018 1.0 12% - 15 %

2018e

-

Rationalize GrowOptimize

21

3%

25

CAPEX 2016-18€50m self-

financed plan

466.7

5.2

2014A

of which

351.5core business

-

Core: +8.7Non core: -3.5

10.4

€12m CAPEX

3.5

67–

7525

28-36

Cash generated by divesture: €40m

Volume effect: 69%Mix effect: 31%

2015e

of which

360.0core business

15%

Core: +11Non core: -1

BIG 2.0 financial recap

BiG 2.023 November, 2015

Date post:	15-Mar-2020
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

BiG 2.0 23 November, 2015en.mbws.com/sites/default/files/mbws_big_2.0_vf_eng.pdf · 2017-01-03 ·...

Documents