Full Year Results

1
Full Year Results
May, 2005
2
Contents

• Overview
• Financial Review
• Market Brand Review
• Outlook
• QA

3
CC Group - Overview

• Leading manufacturer, marketer distributor of
  branded beverages snacks
• Market cap. 1 billion enterprise value 1.45
  billion
• 3 Operating Divisions
• Alcohol
• International Spirits Liqueurs
• Soft Drinks Snacks

4
CC Group Earnings Profile

• EBITA by division
• Cider 58
• Soft-drinks Snacks 22
• International 15
• Distribution 5
• EBITA by region
• Ireland 77
• UK 7
• Rest of Europe 8
• North America 8

Based on 12 months to 28 February, 2005
5
Full Year Results - Highlights

• Turnover growth () 4
• Alcohol cider 10
• International 5
• Operating profit growth () 3
• Increase in marketing investment 19
• Free cash flow/EBITDA 66
• Adjusted earnings per share (cent) 26.4
• Dividend for year per share (cent) 13.0

At constant fx rates
6
Components of Growth

• Components of growth 2004/05
• Increasing Bulmers share of Republic of Ireland
  LAD market
• International cider growth
• Investment led growth in International spirits
  liqueurs

7
IPO - Objectives Met

• Deliver growth ?
• Bulmers market share growth ?
• Magners growth ?
• International growth ?
• Generate consistent, high levels of free cash
  flow ?
• Attractive progressive dividend policy ?

8
Business ModelDelivering earnings growth and
strong cash flow
Revenue Growth

• Leading positions in growth categories
• Proven brand management skills
• New product/markets

Sustainable growth Strong cash generation Attracti
ve dividend stream
Strong Margins High ROCE

• Fragmented customer base
• Extensive route to market
• Low capital base

9
Finance Review
10
Financial Summary2004 as reported
11
Financial Summary2004 Proforma(i)
12
Operating Profit
13
Divisional Analysis

• Alcohol
• Cider
• Distribution
• International Spirits Liqueurs
• Soft Drinks Snacks

14
Divisional Performance (EBITA)Overall
million
115.1m
111.3m
Distribution -20
International 3
Soft Drinks Snacks -9
Cider 12
15
Cider
16
Distribution
17
International Spirits Liqueurs
18
Soft Drinks Snacks
19
Cash Flow
20
Exceptional Costs IPO
21
Balance Sheet Capital Structure

• Balance Sheet Debt/EBITDA
• Net debt at 1 March, 2004 ( m) 481.1 3.54
• Free cash flow in period ( m) (88.0)
• Exceptional IPO costs ( m) 28.8
• Dividends Paid/Other 19.4
• Net debt at 28 February, 2005 ( m)
  441.3 3.30
• Capital structure 28 February, 2005
• Net debt to total capitalisation 31
• EBITDA/net interest cover (x)
  6.2
• Continuing operations

22
Earnings Dividends
(i) Excluding goodwill and exceptionals
23
Market Brand Review
24
Irish LAD Market
Trend figures are CC estimates based on the
following Overall BCI/CC 2.2 / -2.8 Rev.
Comm -1.0 / -3.4 Nielsen 3.6 /
-6.9 On-Trade BCI/CC (draught) 6.7 / -8.5
Nielsen 7.0 / -9.9 Off-Trade BCI/CC
(packaged) 10.7 / 12.5 Nielsen 11.0 /
4.6

• Rev. Commrs/CC MAT Feb 05
• Nielsen MAT Feb 05

(1) Company estimates
25
Irish LAD Market

• Outlook
• Smoking ban impact fully absorbed by mid-year
• On-trade decline expected to drop to around 3
• Overall market expectation close to flat in
  2005/06
• Bulmers - Targeting Volume Growth Share
  Improvement
• Brand fundamentals strong
• Maintain existing strategy

Developing brand equity Marketing
investment Improving distribution
26
International CiderOverall

• Total turnover 35m
• 2004/05 Volume Growth 61
• Magners share of Branded Cider Volume
• 2003/04 15
• 2004/05 22
• Last quarter 04/05 25
• Geographic breakdown of volume (i)
• Northern Ireland 41
• Great Britain 40
• USA 11
• Europe 8

GB
USA
E
NI
(i) H2 2004/5 Branded cider comprises Bulmers
and Magners
(1) Company estimates
27
International CiderMarket Review

• Northern Ireland
• LAD Market (on-trade) 3
• Magners volume growth in year 40
• Magners share of on-trade LAD market (1.4
  points) 5.4 (i)
• Distribution 87(ii)

• MAT to Feb. 05 Nielsen
• Nielsen Feb 05 (packaged) (WTD)

(1) Company estimates
28
International CiderMarket Review

• Great Britain
• Magners total volume growth 248
• Scotland roll-out
• On-trade LAD market -5 (i)
• Share of on-trade LAD market 0.8 (i)
• On-trade cider market 23 (i)
• Share of on-trade cider market 16.6 (i)
• On-trade distribution 59 (ii)
• Profit positive in 2004/5
• Other Markets

Mat Jan. 05 Nielsen Nielsen January
2005 (WTD)
(1) Company estimates
29
Distribution

• Market (Wine Spirits)
• 3 Decline in Irish spirit volume (i)
• 9 Growth in Irish wine volume (ii)
• CC Performance
• Market shift to lower-priced wines (off-trade)
• Business being re-configured

• Nielsen MAT to Feb 05
• Revenue Commissioners MAT to January 2005

(1) Company estimates
30
International Spirits Liqueurs
International Spirits Liqueurs

• Tullamore Dew
• Depletions growth of 6
• Slippage in Europe in H2 market specific issue
• Outlook good
• Carolans
• Depletions down 5 - all due to UK
• North America
• Depletions 2
• Overall market weaker in H2
• Frangelico
• Solid 3 growth

Spirit Liqueur Shipment Volumes 7 growth

• Flat depletions for the year

H1 5 H2 -4
(1) Company estimates
(1) Company estimates
31
Soft Drinks Market

• Overall YOY Share Improved in H2
• Outlook
• Continued Decline in Carbonates
• Water, Sport/Energy, Cordial to Grow
• Water Pricing under Pressure
• CC Strategy
• Focus Marketing Investment in Growth Areas
• Continue Emphasis on Profitable Volume - Price
  Yield
• Pursue productivity improvements

Volume Performance Key Brands
Brand Growth Year to Feb05 Club
(iii) (3.4) PepsiCo (1.6) Ballygowan (4.2) Ove
rall (2.8)

• Republic of Ireland only. Source Beverage
  Council of Ireland Includes Northern Ireland
• Defined on basis of pack
• Including soft drinks, mixers and Energise

(1) Company estimates
32
Snacks Market

• Snacks Market
• Volumes flat for full year (i) H1 market
  recovery not sustained
• Price pressure remains market price yield down
  1(i)
• Tayto King Brands
• Volume increased by 1 (i)
• Value share held at 41 (i)
• Volume share decline 1 to 39 (i)
• Increase in marketing spend - Tayto Honest
  range
• CC Strategy
• Reconnecting with consumers
• New product development
• Optimising price yield
• Pursue productivity improvements

• Nielsen MAT to Dec/Jan 05

(1) Company estimates
33
Outlook
34
OutlookInvesting for sustainable growth

• Economic outlook positive for Ireland
• Bulmers to grow volume and share
• Magners
• Momentum in N. Ireland and Scotland
• S.E. England roll-out on track
• Good prospects for Tullamore Dew
• Outlook for other divisions subdued
• Progressive dividend stream reflects confidence
  in growth

35
Investment Thesis

• Sustainable cash flow generation capability
• Well invested asset base
• Track record of growth
• Defensive qualities in difficult markets
• Proven brand management skills
• Extensive distribution channels - route to market

Sustainable growth Strong cash generation Attracti
ve dividend stream
36
QA

• Annual General Meeting 8 Jul, 2005
• H1 05/06 pre-close August, 2005
• H1 05/06 period end 31 August, 2005
• H1 05/06 results October, 2005

37
Appendix
38
CC Group Product Profile
Alcohol
Irish LAD
Bulmers
10 5
N. Ireland LAD
Magners
Soft Drinks
Soft Drinks Snacks
Incl. Club, 7UP Ballygowan
35 39
Snacks
Incl.Tayto King
Spirits Liqueurs
Cream Liqueurs
Carolans
Irish Whiskey
Tullamore Dew
(1) Independent sources (2) Company estimates
39
Bulmers A Case Study
40
Cider the Irish LAD Market
1990 2004 CAGRTotal Long Drinks Market 2
Cider duty doubled
16
14
12.7
13 CAGR
12.2
11.8
11.6
11.5
12
10.1
9.0
10
8.1
7.5
Market Share by Volume ()
7.1
8
5.6
6
4.9
4.3
9.8
9.6
9.5
3.7
9.2
9.2
8.0
2.9
4
6.4
5.5
4.5
2
3.2
2.7
2.3
1.6
1.1
0.9
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Bulmers
Other Cider (incl. other CC brands)
CC has grown cider to become a significant
category in the Irish long drinks market
Content of slides not for reproduction
Source Revenue Commissioners for beer cider
volumes CC for Bulmers ex-factory volumes Note
Calendar years. LAD market is
beer and cider
41
Cider 1988

• Cider Attributes
• Poor image
• Low price point
• High alcohol content (5.5 / 6.0)
• Fringe category
• Issues to Address
• Brand image and positioning
• Consumer and trade attitudes
• Media perception
• Strength / pricing

Content of slides not for reproduction
42
Cider Today

• Price premium / Image
• Positioned alongside premium lager
• Normal alcohol content (4.5)
• Brand values
• Craft, Tradition, Heritage
• Unique pint bottle
• Outperformance
• Beer
• Competitor ciders

Content of slides not for reproduction