CREATING WIN-WIN MEMORABLE EXPERIENCES Annual General Meeting

Transcription

1 CREATING WIN-WIN MEMORABLE EXPERIENCES 2016 Annual General Meeting

2 GEORGE McCARTHY Chairman of the Board 2016 Annual General Meeting November

3 OFFICIAL BUSINESS 2016 Annual General Meeting November

4 FORWARD LOOKING STATEMENTS Today s presentation contains forward-looking statements, including statements concerning possible or assumed future results of operations of Corby Spirit and Wine Limited, and following the recent transaction of Ungava Spirits Co. Forward-looking statements typically are preceded by, followed by or include the words believes, expects, anticipates, estimates, intends, plans or similar expressions. Forward-looking statements are not guarantees of future performance. They involve risks and uncertainties, including, but not limited to, the impact of competition, consumer confidence and spending preferences, regulatory changes, general economic conditions, and Corby s ability to attract and retain qualified employees. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These factors are not intended to represent a complete list of the factors that could affect Corby. Additional factors are noted elsewhere in this presentation. This presentation contains certain information that is current as of November 9, Events occurring after that date could render the information contained herein inaccurate or misleading in a material respect. Corby will provide updates to material forward-looking statements, including in subsequent news releases and its interim management s discussion and analyses filed with regulatory authorities, as required under applicable laws. Additional information regarding Corby, including its Annual Information Form, is available on SEDAR at Annual General Meeting November

5 OFFICIAL BUSINESS 1. Constitution of Meeting 2. Introducing the Board of Directors 3. Voting Procedures 4. Appointment of Scrutineers 5. Notice of Meeting 6. Meeting in Order 7. Review of 2015 AGM Minutes Financial Annual Report, Financial Statements and Auditor s Report 9. Scrutineers Report 2016 Annual General Meeting November

6 NOMINATION OF DIRECTORS George F. McCarthy Claude Boulay Paul C. Duffy Robert L. Llewellyn Donald V. Lussier Patricia L. Nielsen Patrick O Driscoll Thierry R. Pourchet Antonio Sanchez 2016 Annual General Meeting November

7 APPOINTMENT OF AUDITORS Deloitte LLP 2016 Annual General Meeting November

8 PATRICK O DRISCOLL President and Chief Executive Officer 2016 Annual General Meeting November

9 CREATING WIN-WIN MEMORABLE EXPERIENCES Delivering solid financial performance Innovating in products and process Refining our approach Acquiring new brands Securing our future 2016 Annual General Meeting November

10 DELIVERING SOLID FINANCIAL PERFORMANCE 2016 Annual General Meeting November

11 OUR 2016 PERFORMANCE +6 % Revenue +25 % Net Earnings 2016 Annual General Meeting November

12 GROWTH IN SPIRITS & WINES +4 % Absolut +19 % Jameson +23 % Jacob s Creek 2016 Annual General Meeting November

13 PROMOTING CRAFT CANADIAN WHISKY +4 % Absolut +103% Shipment Volume Change 2016 Annual General Meeting November

14 INNOVATING IN PRODUCTS AND PROCESS 2016 Annual General Meeting November

15 EVOLVING OUR HERITAGE AND CRAFTSMANSHIP Launched JP Wiser s Double Still Rye, JP Wiser s Hopped JP Wiser s Hopped named best new whisky introduction at the 2016 Canadian Whisky Awards Collaborated with LCBO to launch JP Wiser s Last Barrels 2016 Annual General Meeting November

16 RESPONDING TO DEMAND FOR CRAFT WHISKIES Released Gooderham & Worts Four Grain Whisky Awarded top honours at Canadian and international whisky competitions 2016 Annual General Meeting November

17 CAPITALIZING ON NEW TRENDS Introduced ingredients for home bartending and cocktail making Innovations in wine formats Over 60% of incremental value in spirits and wine market coming from innovation 2016 Annual General Meeting November

18 REFINING OUR APPROACH 2016 Annual General Meeting November

19 REFINING OUR STRATEGY IN THE U.S. Reprioritizing focus on premium brands and small number of markets High value and fast growth segment Dedicated team building awareness Applying learnings from U.S. to other markets 2016 Annual General Meeting November

20 JP WISER S TASTES LIKE WHISKY CAMPAIGN 2016 Annual General Meeting November

21 ACQUIRING PREMIUM BRANDS 2016 Annual General Meeting November

22 DOMAINES PINNACLE ACQUISITION Acquired in September 2016 Added premium brands Complementary to Corby portfolio 2016 Annual General Meeting November

23 UNGAVA GIN Number two selling deluxe gin by volume in Canada Flavoured by botanicals gathered from Northern Quebec Deluxe growth product in dynamic category 2016 Annual General Meeting November

24 INTRODUCING UNGAVA SPIRITS CO. LTD. Flexible micro-distilling and bottling capabilities Operates as new wholly-owned subsidiary of Corby Brands will complement Corby s existing Canadian portfolio Adds entrepreneurial unit to existing strategies 2016 Annual General Meeting November

25 SECURING OUR FUTURE 2016 Annual General Meeting November

26 SOLIDIFYING OUR RELATIONSHIP WITH PERNOD RICARD Amended Canadian representation agreements Extended production and administrative services agreements for 10 years Signed five-year agreement to represent Lamb s rum in the UK 2016 Annual General Meeting November

27 DEFINED PURPOSE & CSR INITIATIVES 2016 Annual General Meeting November

28 OUR COMPANY PURPOSE CREATING WIN-WIN MEMORABLE EXPERIENCES 2016 Annual General Meeting November

29 A LEADING EMPLOYER One of the 50 Best Workplaces in Canada for the fifth year in a row Also named one of Greater Toronto s Top 100 Employers for second year in a row 2016 Annual General Meeting November

30 PROMOTING RESPONSIBLE CONSUMPTION 3 rd year of Corby Safe Rides partnership with the TTC on New Year s Eve Take the Pledge #ModerationMonday 2016 Annual General Meeting November

31 6 TH ANNUAL RESPONSIB ALL DAY 2016 Annual General Meeting November

32 ANTONIO SANCHEZ Chief Financial Officer 2016 Annual General Meeting November

33 Creating win-win memorable experiences = delivering value growth and returns for shareholders 2016 Annual General Meeting November

34 FY16 NET EARNINGS AND REVENUE Increased commission revenue Bulk whisky sale to rebalance maturing inventories Strong H2 performance domestically International business disrupted by UK distributor transition +25% Net Earnings +6% Total Revenue 2016 Annual General Meeting November

35 DOMESTIC RETAIL SALES Canadian whisky growth driven by +1% innovation and premium offerings Difficult holiday period but strong H2 turnaround for Polar Ice Expanding innovation in mixable liqueurs category Defending Lamb s rum regional strongholds and launching new flavours 2016 Annual General Meeting November

36 COST OF SALES: MARGIN QUALITY Cost of sales broadly flat Focus on margin quality Avoidance of low ROI promotional programs 2016 Annual General Meeting November

37 MARKETING, SALES AND ADMINISTRATION Marketing expenses aligned with refined US strategy Focus on premium Canadian whisky craft range incubation -1% Spend 2016 Annual General Meeting November

38 OPERATING CASH Consistent with overall increase in net earnings Ability to acquire Domaines Pinnacle spirits assets 2016 Annual General Meeting November

39 2016 SUMMARY Strong financial performance Refined international business strategy and investment model Strong innovation pipeline Operational effectiveness and organizational capabilities in place 2016 Annual General Meeting November

40 Q Shipment volume -2% and value -6% Domestic shipment primarily impacted by shift in customer order timing Transition to new Lamb s UK distributor positively impacted international business Further commission income stream growth (+5%) Tight cost management and focused investments (-10%) -5% Revenue +5% EPS +2% Net Earnings 2016 Annual General Meeting November

41 CREATING SUPERIOR RETURNS Domaines Pinnacle acquisition Scale up brands volume and value growth prospects Targeting EPS neutral by first anniversary of acquisition Other growth avenues Further M&A exploration Maintain cash reserve to act quickly Investment in existing assets, innovation and international expansion 2016 Annual General Meeting November

42 PATRICK O DRISCOLL President and Chief Executive Officer 2016 Annual General Meeting November

43 LOOKING AHEAD Addressing external challenges to minimize impact Canadian whisky opportunity Competing in premium growth segments Ungava Gin as differentiator Extended production and services agreements X.X% 2016 Annual General Meeting November

44 REGULAR DIVIDEND $0.21 Per Share +10% Increase Paid on December 9, 2016 Shareholders on record as of November 25, 2016 X.X% 2016 Annual General Meeting November

45 GEORGE McCARTHY Chairman of the Board 2016 Annual General Meeting November

46 2016 Annual General Meeting THANK YOU

47 2016 Annual General Meeting 47