Presentation Reims, september 2011 - LANSON-BCC
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Presentation Reims, september 2011
Champagne
LANSON-BCC Group
2011 half-year earnings
Strategy
Outlook
Stock market data
Champagne
LANSON-BCC Group
2011 half-year earnings
Strategy
Outlook
Stock market data
The Champagne Area
The geographical area of Champagne (GI:
Geographical Indication) is limited to 35,200
hectares (317 villages) and planted to 97%
The vine growers own 87% of the area in
production and Champagne Houses
commercialize 2 thirds of total shipments
Available 2011 harvest : 12,500 Kgs / ha, + 19% vs.
2010
Grapes: a valuable raw material, paid between
4.90 and 6.50 per kg for the 2010 harvest
The current revision of the AOC is a complex
process that will get its first results from 2020-
2025
Source: CIVC 2010 dates
Presentation – september 2011
Champagne:
a fundamentally buoyant market
a constant growth of the champagne shipments since 1950
in million bottles - Source CIVC
350
320
293
300
257
250
234
200 188 181 181 185
178
160
149 149
150
110
100
60 151 142
129 135
50 31 40 97 103 112
85
60
14 17 10 40
0
1950 1960 1970 1980 1990 1995 2000 2005 2007 2008 2009 2010
Export France Cumul
Presentation – september 2011
Champagne:
the export potential development
2010 split of shipments 2010 eleven first export markets
(in million bottles - Source CIVC) (in million bottles - Source CIVC)
U.K. 35,5 + 16,3 %
France
185
U.S.A. 16,9 + 34,9 %
+ 2,3 % Germany 13,3 + 21,6 %
Belgium 8,8 + 7,8 %
57,9 % Japan 7,5 + 45,4 %
Italy 7,2 + 5,6 %
Switzerland 5,4 + 12,3 %
42,1 % Spain 3,7 + 23,8 %
Export Australia 3,7 + 25,8 %
134,5 Netherlands 2,5 - 9,5 %
+ 19,7 % Sweden 2,3 + 16,7 %
B.R.I.C.HK 4,6 + 63,3 %
B.R.I.C.HK : Brazil, Russia, India, China
and Hong Kong
Presentation – september 2011
Champagne
LANSON-BCC Group
2011 half-year earnings
Strategy
Outlook
Stock market data
History,
seven Champagne Houses
Business combination
Champagne Boizel
founded in 1834
Épernay
+
Champagne Chanoine Frères Purchase
founded in 1730 Purchase Maison Burtin
Reims
Champagne Besserat de Bellefon
= Alexandre Bonnet founded in 1843
Boizel Chanoine Champagne Épernay
founded in 1973
Les Riceys
Champagne Lanson
Introduction on the stock founded in 1760
Creation exchange at 7,20 Purchase Reims
capital increase
Champagne
Purchases De Venoge
founded in 1837
Champagne Chanoine Frères Epernay
founded in 1730 Purchase
brand in sleeping state Champagne Philipponnat
founded in 1910
Mareuil sur Aÿ
CGV (wine
brokerage)
1991 1994 1996 1997 1998 2006
Presentation – september 2011Clear fundamentals
A pure-player: production and marketing of a full range of wines from Champagne
Special attention to the quality of wines;
Complementarities of the Houses;
A pragmatic presence in all distribution channels, in line with consumers expectations.
A strategy whose aims are to value and extend the champagne ranges, through strong brands and new
cuvees launching.
A wide and solid supply base
Confidence of the vine partners: a contractual basis covering the various needs of the Group;
Acquisitions of vineyards including the purchase end of 2010 of an area of 13 ha 20, grown long in
organically. An expansion of the Group's offer to meet the growing demand of consumers for this type
A vineyard owned by the Group increased to 107 ha 68 (105 ha 41 on December 31st 2010).
Rational organization
Competent and experienced teams, average staff of Group in 2010: 421persons
Optimal use of effective production tools;
Exploitation of commercial synergies (see LID).
Presentation – september 2011Presence
on all distribution networks
A complementary offer, development levers
Off Trade On Trade
Lanson Lanson
Tsarine Besserat de Bellefon
Alfred Rothschild & Cie Philipponnat
Chanoine Frères De Venoge
Other Champagnes
Prestige Mail Order
Noble Cuvée Lanson Boizel
Extra Age- Lanson France
Joyau de France - Boizel
Cuvée des Moines - Besserat de Bellefon
Clos des Goisses - Philipponnat
Louis XV - De Venoge
Presentation – september 2011Broad portfolio of Champagnes
Lanson Lanson Lanson Lanson Lanson
Lanson Black Label Rosé Label Gold Label Extra Age Noble Cuvée
1999 Brut Rosé
Philipponnat Philipponnat Philipponnat
Philipponnat
Royale Réserve Clos des Goisses 1998
1522
De Venoge
Cordon Bleu
De Venoge
De Venoge
Besserat de Bellefon Besserat de Cuvée Louis XV
Grande Tradition Bellefon 1995
Besserat de Bellefon Brut Cuvée des Moines
2002
Boizel
Boizel Joyau de
Boizel Brut Réserve France
1996
Tsarine Tzarina
Tsarine Tsarine
Cuvée Premium Premier Cru
Alfred Rothschild
Brut
Alfred Rothschild & Cie
Chanoine
Chanoine Frères Cuvée Tradition Brut
Alexandre Bonnet
Cuvée Perle Rosée
Alexandre Bonnet Alexandre Bonnet
Blanc de Noirs Brut Average consumer
selling price in France
Other Champagnes (inc. VAT)
< 15 from 15 to 20 from 20 to 35 from 35 to 75 up to 75
Presentation – september 2011Champagne
LANSON-BCC Group
2011 half-year earnings
Strategy
Outlook
Stock market dataEnvironment of the first half of 2011
Different environments between the first halves of 2010 and 2011
A first half of 2010 particularly dynamic thanks to customers restocking following the
sharp contraction in their stocks worldwide during the first half of 2009;
A first half of 2011 confirmed the beginning of a return to a more selective development of
better valued-added cuvees and export;
The global champagne wine market (source: CIVC) up 5.2% in volume terms, compared
with 18.2% growth for the first six months of 2010.
Presentation – september 2011LANSON-BCC business
over 1st half of 2011
Pragmatic pursuit of the strategy as a global Champagne player
The Houses complementarities enables to not neglect any market segment, from
secondary brands, less dynamic over the period, to the more favorable segments for
export sales and superior vintages, particularly those from Champagne Lanson.
A strategy that makes it possible to cope with variations in the market.
2.5% drop in the sales volumes, after increasing them by 6.7% over the first six
months of 2010
The improvement in the price mix: +5.6%
Percentage of revenues generated on export: 47 % of total shipments;
Increase in better value-added volumes sold by the Group's Houses in the UK, which
continues to represent the number one export market.
Presentation – september 2011Increase in the half-year results Revenues: 109,01 M , up 4,5 % EBIT: 13.39 million euros, up 43% Operating margin: 12.3%, compared with 9% at June 30th, 2010 Net income: 4.47 million euros, up 155% Presentation – september 2011
Condensed income statement
IFRS in m H1 2011 H1 2010 Change
Revenues 109.01 104.34 + 4.5%
EBIT 13.39 9.37 + 42.9 %
% of revenues 12.3 % 9%
Financial result - 6.39 - 6.60 + 3.2 %
Pre-tax earnings 6.99 2.77 + 152 %
Taxes - 2.52 - 1.02
Net income (Group share) 4.47 1.75 + 155 %
% of revenues 4.1 % 1.7 %
Presentation – september 2011Condensed income statement
(excluding CGV)
IFRS in m H1 2011 restated H1 2010 restated change
Revenues 99.31 94.67 + 4.9 %
EBIT 13.14 8.99 + 46 %
% of revenues 13.2 % 9.5 %
Net income 4.31 1.49 + 189 %
% of revenues 4.3 % 1.6 %
Presentation – september 2011Sound balance sheet
06/30/2011 12/31/2010 06/30/2011 12/31/2010
ASSETS PASSIF
Acquisition goodwill 48,110 48,110 Capital 55,785 55,785
Intangible fixed assets 69,284 69,305 Issue premiums 1,781 1,781
Tangible fixed assets 140,167 139,922 Consolidated reserves 114,362 97,360
Non-current financial assets 898 894 Net income 4,473 19,184
Deferred tax assets 111 4,565 Minority interests 32 16
NON-CURRENT ASSETS 258,570 262,795 SHAREHOLDERS' EQUITY 176,434 174,126
Provisions 909 942
Inventories 424,969 423,987 Fin. debt allocated to inventories 358,150 362,290
Fin. debt. allocated to investments 78,952 94,210
Deferred tax liabilities 10,765 15,970
Employee benefits 8,924 8,639
NON-CURRENT LIABILITIES 457,700 482,050
Cash 4,587 15,648 Borrowings under one year 27,707 27,346
Trade receivables 50,915 127,554 Trade payables 78,303 148,945
Tax and social security liabilities 10,467 13,024
autres actifs courants 17,106 22,342 Other current liabilities 5,536 6,836
CURRENT ASSETS 497,577 589,532 CURRENT LIABILITIES 122,013 196,152
TOTAL ASSETS 756,147 852,328 TOTAL LIABILITIES 756,147 852,328
Presentation – september 2011A sound financial debt under control
en M
410,1
- 0,9 % 412,9
363,2
- 3,6 % 376,9
Book value of inventories
Net debt allocated for the ageing of
wine stock
176,4
+ 12,7 %
Shareholder's equity
156,5
97
+ 1,1 % 95,9
Other net debt
H1 2011 H1 2010
Presentation – september 2011Rigourous management of financial debt
At June 30th, 2011
Repayment schedule Average financial debt
for gross financial debt
464.8 M€
< 1 year (6 %)
Variable rate
28 %
1>5
years
Fixed rate
91 % 72 %
> 5 years (3 %)
H1 2011 combined average rate: 2.9 %
Presentation – september 2011Condensed cash-flow statement
In m H1 2011 H1 2010 2010
Cash flow from operations
11.89 11.60 41.57
before cost of net financial debt
Reduction (+) or increase (-) in working capital 8.20 - 5.72 -6.02
Net cash from operations 20.09 5.88 35.55
Net cash from investments - 3.51 - 2.12 - 20.10
Net cash available after investments 16.58 3.76 15.45
Net cash from financing
- 27.92 - 36.67 - 25.87
After cost of net financial debt
Change in cash position - 11.44 - 32.91 - 10.42
Cash position - 5.03 - 16.08 6.41
Presentation – september 2011Improvement in gearing
Net financial debt/equity
Purchase
Purchase
Champagne Maison Burtin
Alexandre Bonnet Champagne Lanson
Champagne De Venoge
Purchase
5,68
Champagne Philipponnat
Introduction en bourse 4,05 3,87
3,46 3,06
3,18 2,69
2,84 2,87
2,61
2,14 2,09 2 1,74
1,78
1,1
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 S1H1
2011
2011
Presentation – september 2011Champagne
LANSON-BCC Group
2011 half-year earnings
Strategy
Outlook
Stock market dataA strategy for long-term value
Ongoing policy, moving in the right direction, to not ignore any Champagne
market segment
From acessible luxury to great prestige cuvee.
A strategy focused on valuing and extending range of wines
Trademarks potential;
Launches of new cuvee.
A differentiated strategy according to the Houses, Wines and distribution
networks
Real Houses with strong identities and different styles;
Pricing policies adapted to the positioning of each House;
A targeted marketing policy.
Domestic market: strong positions
Export: a leverage of complementary developments
Presentation – september 2011History of profitable growth
Change in revenues et margins since 1996
322,4
300,7 305,2
23,6% 276,0
266,3
22,2%
16,8%
16,1%
15,7% 15,3%
14,7% 14,0% 13,9% 14,2%
13,5%
12,7% 13,0%
11,8%
10,7%
10,0% 9,8%
97,1
91,2
7,1% 85,1 79,7
73,1 6,6% 6,8% 6,3%
6,3% 71,9 5,6% 5,8%
5,4% 68,9 64,3 8,1%
5,5% 6,1%
36,9
30,3 4,5%
3,9%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Chiffre d'affaires
Revenues (en M )
(in €m) Marge opérationnelle
Operating margin ( % (en % du chiffre d'affaires)
of revenues) Marge nette ((en
Net margin %% of du chiffre d'affaires)
revenues)
2006 et 2007 : excluding non-recurring stock reduction program
Presentation – september 2011Lanson,
an international brand with strong potential
A new identity based on the Lanson Cross
A reinforced communication on the occasion of the 250th
Anniversary
A new cuvée on an added value segment
Lanson Extra Age, a cuvée re- -
Launch of Extra Age Rosé in September 2011
Prestigious and selective events in adequation with the
Lanson values
Wimbledon, 24 Mans Hours, Tour Auto, Monte-Carlo Rolex
Masters, Mans Series, Monaco Yacht Show, Montaigne
Harvests, Hydroptere (the fastest sailing boat), etc
Strong links with the Haute Gastronomie
Presence in the main restaurants: Plaza Athénée, Georges V,
Presentation – september 2011Besserat de Bellefon,
an elegant and refined brand
Wines designed for great tables
Cuvée des Moines particularly suited to accompany gourmet
food;
New reference with the Extra Brut Cuvee des Moines, launched
in September 2009
New clear and refined label, developed in 2010
Close partnerships on themes of art and gastronomy
Actions to develop the reputation of the brand
Press media plan, sales catalog for private
Presentation – september 2011Tsarine, the brand rising
Alfred Rothschild & Cie, leader in mass retail
Tsarine, the growing success of a brand created in
1998
An iconic twisted bottle with high-impact on our
consumers, and regularly marked by many spectators
and viewers;
A sustained media presence in press;
Visibility range through the seventh art and the world of the
night;
A new super-premium reference in 2010: Tzarina, presented
in an innovative and luxurious setting.
Alfred Rothschild & Cie,
The extension of the range with development of
a cuvee Blanc de Blancs.
Presentation – september 2011Boizel, Philipponnat, De Venoge, A. Bonnet
Recognized brands in their markets
Networks devoted
Great restaurants, wine stores, mail order.
New vintages and new cuvee
Boizel : Blanc de Noirs ;
Philipponnat : Réserve Millésimé 2003 ;
De Venoge : Blanc de Blancs 2002.
Renewed labels and cases
Philipponnat : exclusive new bottle;
De Venoge : Cuvée Rosé Reserve with the recovery of the original
label of the 19th century;
Boizel : Limited Edition Boizel Masking Tape in collaboration with the
solidarity concept store in Paris.
Constant media and events presence
Presentation – september 2011Champagne
LANSON-BCC Group
2011 half-year earnings
Strategy
Outlook
Stock market dataOutlook The Group's profitability over the first half of the year is satisfactory, while it does not usually benefit from the standard seasonality seen for Champagne wine sales. The complexity of the global situation and the poor economic outlookcall for a highly cautious approach: the level of consumption at the end of 2011 will be decisive. Strategic continuity and possible improvement in results over the full year 2011. The potential for development in the medium and long term, based on the demonstrated effectiveness of LANSON-BCC economic model. Presentation – september 2011
Champagne
LANSON-BCC Group
2011 half-year earnings
Strategy
Outlook
Stock market dataShare price
31.12.1996 30.06.2011
Equity: 16.36 M€ Equity: 176.43 M€
Revenues: 30.31 M€ Revenues: 109.01 M€
Net Income: 1.9 M€ Net Income: 4.47 M€
Number of shares: 4 511 672 Number of shares: 6 136 341
EPS: 0.42 € NAS* : 28.75 €
NAS* : 3.63 € Share: 64.85 €
Share: 6.86 €
December 4th 1996
Listing to 7.24
* Not restated
Presentation – september 2011Shareholding structure at July 31, 2011
Listed on Eurolist B/Nyse-Euronext Paris since december 1996
6 136 341 shares following the free distribution of July 2011 (1 / 10)
17.52%
22.49% .20.14%
SAS Bruno Paillard public
Bruno Paillard family BPCE group
total
Philippe Baijot family Treasury shares
founding
Roques-Boizel family families
0.34% 76.5%
16.35%
8.49%
14.67%
Presentation – september 2011Questions and answers
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