Aucun titre de diapositive

1
2002 results
19 March 2003
2

• Successful integration of Seagram
• Above-forecast financial results
• 2002's achievements lay solid foundations for 2003

Pernod Ricard poised for growth
3
Above-forecast results amid difficult economic
conditions
Restated for exceptionals and goodwill
amortisation, diluted for convertible bonds
before the impact of the 1-for-4 bonus issue
Excluding OCÉANE bonds
4

• Key figures / Highlights
• Brand performance
• Wines Spirits Results
• Consolidated Results
• Outlook and Conclusions
• Appendices

5
Key figures / Highlights
6
Key figures

• Acquisition of Seagram increases EPS in the first
  year of integration
• Consolidated net profit excluding exceptionals
  59

• Debt paid down quickly

Ex OCEANE
7
Highlights

• Successful integration of Seagram
• 3,600 employees
• A portfolio of premium brands with worldwide
  recognition
• The Pernod Ricard network covers all markets
• Better than expected results from management of
  Seagram Venture Assets
• Disposal of Venture Assets 539 million net of
  tax
• Restructuring costs held down to 236 million net
  of tax

• Pernod Ricard share 120 million net

• End of Seagram-related cooperation with Diageo
  (21/12/02)
• Finalisation of programme to divest diversified
  businesses (Orangina-Pampryl, SIAS, BWG, cider,
  etc.)

Refocused on Wine Spirits at end 2002
8
Brand performance
9
Key historical brands continue to advance

• Sound performance by key historical brands 3.5
  by volume
• .. growth drivers continue to develop ...
• and despite fall in anis (versus 5 growth in
  2001)

10
Trends in Seagram key brands

• Key brands recovered in H2
• Chivas and Martell sales affected by
• Gradual return to normal market conditions
• Destocking (83 000 cases 9L for Chivas, 39 000
  cases 9L for Martell)
• Tough situation in South America Chivas down 67
  000 cases 9L (Venezuela)
• Strong performances from Seagrams Gin and The
  Glenlivet

11
Chivas Regal
Sales volumes by region

• A worldwide brand
• 2002 preparing for growth
• Destocking completed
• Outstanding performance in Spain (34) and in
  Korea 33 and launch of Chivas Revolve, 17 years
  old
• Volumes stable in the USA after several years'
  decline
• Impact of the South American crisis, and signs of
  an upturn

Strong growth expected in 2003
12
Ricard
source IRI panel

• 2002 a correction after 2001's 5 growth
• Fall in stocks held by some major multiple
  retailers in France
• Consumption hit by bad weather and a decline in
  on-trade consumption
• "Ricard Bouteille" RTD tested successfully ?
  nationwide launch in 2003 in night on-trade

Upturn expected in 2003, depending on the
economic environment
13
Seagrams Gin
4-yr sales pattern for standard gin, USA
27.0
-4.3
26.1
1.6
25.1
24.7
L m
2000
2001
2002
1999

• Stability in sales volumes in 2002
• Integration of the range (Pure Gin Flavoured
  Gin Gin Juice)
• Launch of Seagrams vodka in the USA

Stable in 2003
14
Martell
Sales volumes by region

• Destocking in some markets (China, UK)
• Consolidation of sales volumes for Cordon Bleu
• Brand repositioning ready for implementation in
  2003

Goal return to growth
15
Havana Club
Volume growth
1.7
1.5
1.3
1.2
0.9
CAGR15.5
m cases

• Success story continues 11.6
• Successful launch of new products in this range
  Anejo Blanco (Italy, Cuba) Anejo Oro (Spain,
  Cuba)
• Two new commercials in Italy and Germany (Wim
  Wenders)
• Successful and innovative promotions Banda
  Havana Club

1998
1999
2000
2001
2002
2003 double-digit growth to continue
16
Jacobs Creek
Volume growth
5.9
5.3
4.5
CAGR 21
3.8
2.7
m cases
1999
2000
2001
2002
1998

• Good performances in UK, Australia, USA, Ireland
  and Japan
• Premium pricing maintained in US and UK, despite
  discounting by competitors
• Million-case barrier breached in Australia (22)
• Opening Jacobs Creek visitor centre (Barossa
  Valley, Sep. 2002)

En route for 10 million cases
17
Jameson
Volume growth
1.5
1.4
1.3
1.2
1.2
CAGR 6
m cases
1998
1999
2000
2001
2002

• Another year of robust growth 6,6
• Two premium products enhance the range"Jameson
  12 Year Old" and "Jameson 18 Year Old"

Continuation of a winning strategy
18
Wines Spirits Results
19
Wines SpiritsSales

• Up 78
• Healthy organic growth 4.5
• Sharply adverse currency impact on historical
  brands -49 million

3,408
78
1,918
1,760
- Organic growth 4.5 - Forex -2.5 -
Perimeter 2.0 - Seagram 73.8
( m)
2000
2001
2002
20
Wines Spirits Sales

• Seagram brands successfully integrated...

• despite beginning-of-year destocking for 36
  million (-2.6) and the Latin American crisis
  
• ... and a 97m adverse currency impact (USD,
  Latin America)

Organic growth
2.9
Industrial co-packing
3.3
Forex
-7.1
Perimeter
5.3
Distribution of Four Roses, Sandeman

• Organic growth (normative, ex destocking) 5.4

21
Wines Spirits Sales by region
Europe
France
8.6
52.4
1,330
592
872
Organic growth
6.4
545
371m
Seagram
-0.6
Forex
01
02
01
02
17
39
25
Rest of world
x 2.5
Americas
x 3.5
835
19
651
242
258
01
02
01
02
22
Wines Spirits EBIT

• Targets exceeded
• Full effects of Seagram-related synergy 20.8
  EBIT margin
• Strong, steady organic growth 7.5

710
106
344
320

• - Organic growth 7.5
• - Forex -1.5
• Perimeter 100

H2
H1
(m)
2000
2001
2002
EBIT margin 17.1 17.9 20.8
23
Wines Spirits EBIT by region
( million)
Europe
52
France
14
277
120
182
106
17
01
02
01
02
39
25
Rest of world
Americas
X5.3
X5.6
19
176
137
26
31
01
02
01
02

• Critical mass reached in all regions
• Strong profit growth in Americas and ROW
• EBIT margins are consistent in all regions

24
Wines Spirits AP investments

• AP investments maintained at a high level

AP investments
83
729
398
m
01
02
sales
Policy to be maintained in 2003
25
Wines SpiritsStructure costs

• Improved cost efficiency
• leveraged impact on EBIT profitability

Overheads and commercial costs
Distribution costs
648
134
62
46
83
443
m
m
01
02
01
02
sales
sales
26
Consolidated Results
27
Consolidated results EBIT

• Sharp rise in consolidated EBIT

750
40
66
451
107
710
344
2001
2002
28
Consolidated results Financial expenses

• Financial cost limited limited due to substantial
  debt reduction and lower interest rates

incl. OCEANE interest and redemption premium
21 million

• Average cost of debt ex OCÉANE 4.4
• Percentage of debt (ex OCÉANE) hedged or
  fixed-rate 76

29
Consolidated resultsBorrowings

• Sharp fall in debt over the year
• Net debt 2.3 billion
• Gearing 0.88

Net debt (1)
Gearing (1)
1.47
3,695
1.17
2,725
2,294
0.88
m
30/06/02
31/12/01
30/06/02
31/12/02
31/12/01
31/12/02
(1) OCÉANE excluded from debt and equity
?
Syndicated loan margin 55bp in 2003, floor of
ratchet-down mechanism
30
Consolidated resultsSharp rise in free cash flow
- 73
Tax on sale of Orangina (139m) restated as
financial disinvestment

• Decrease in WC 106 million
• Decrease in operating WC 20 million
• Decrease in non-operating WC 86
  million
• (impact on deferred tax 70 million)

31
Consolidated resultsIncome tax

• Decrease in underlying tax rate 25.1 (versus
  27 in 2001)

Income tax 157 million
On ordinary profit150 million
On exceptionals7 million
Rate 25.1
32
Consolidated resultsAnalysis of exceptional items
33
Consolidated resultsNet profit
59
Includes 15 million of exceptional
amortisation on Jan Becher
34
Consolidated resultsEarnings per share
83
43
2002 target 6.40

1999
2001
2002

• (Restated for exceptionals and goodwill, diluted
  for convertible bonds before the impact of the
  1-for-4 bonus issue)

35
Consolidated resultsDividend

• Share capital increase (14/02/03) 1-for-4 bonus
  issue
• Total shares outstanding 70,484,081 (versus
  56,386,660)
• Nominal dividend maintained on increased share
  capital 1.8
• Overall dividend up 25

36
Consolidated resultsShare price performance
Share price (month-end) 1 Jan 2002 28 Feb
2003 31/12/01 100
3.2
-59
37
Outlook and Conclusion
38
2002 resultsOutlook and conclusions

• Excellent 2002 results
• Potential of new portfolio
• A solid foundation for future growth
• confirmed by a strong start to 2003
• BUT
• Uncertain geopolitical and economic situation
  prevents specific guidance for 2003 until the
  shareholders meeting (7th May 2003)

39
Appendices
40
2002 Results Wines Spirits PL
41
2002 ResultsConsolidated PL
After production costs
42
2002 ResultsConsolidated PL
43
2002 Results Consolidated balance sheet
million
Net of redemption premium
44
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