PRESENTATION 2016
GRUPPO CAMPARI S HISTORY Campari was founded in 1860 - the year Gaspare Campari invented the bright red bittersweet aperitif in downtown Milan. From 1888 onwards, his successor and son, Davide Campari, developed and implemented an extensive campaign to grow the brand globally, featuring a winning marketing strategy; the creation of the first single-serve aperitif, Campari Soda, in 1932; and a patronage of the arts to enhance product promotion. In the 1960s, Gruppo Campari s distribution power already reached over 80 countries. In the second half of the 1990s, the beverage industry was characterized by a strong M&A trend which led to the creation of corporations with global dimensions and remarkable portfolios appealing to a broad consumer dynamic. Therefore, Campari chose to expand not only via organic growth but also via external growth, turning from a single-brand company as late as 1995 to a multinational company with a solid and expansive portfolio with international appeal today. 2
GRUPPO CAMPARI TODAY Gruppo Campari today is a major player in the global branded beverage industry, with a portfolio of over 50 premium and super premium brands, marketed and distributed in over 190 markets around the world, with leading positions in Europe and the Americas. The Group employs around 4,000 people and has an extensive portfolio that spans three business segments: spirits, wines and soft drinks. Shares of the parent company Davide Campari - Milano S.p.A. are listed on the Italian Stock Exchange since 2001. Gruppo Campari is today the sixth-largest player worldwide in the premium spirits industry*. 1 2 3 4 5 6 7 8 9 10 Diageo Pernod Ricard Bacardi Ltd. Brown-Forman Beam Suntory Gruppo Campari Constellation Brands E.&J. Distillers Mast-Jägermeister The Edrington Group * Source: Impact s top 100 Premium Spirits Brands Worldwide by Company, February 2015 3
WORLDWIDE PRESENCE A strengthened route-to-market and product supply chain Headquartered in Sesto San Giovanni (Milan), Gruppo Campari has its own distribution network in 19 countries. Since 2004, it dramatically strengthened its route-to-market from 5 to 19 in-market companies which account for 90% of Group revenues. The Group insourced bottling activities in the core US and Australia markets and globally increased its manufacturing plants from 8 in 2004 to 16 today: Italy (4), Greece, Scotland, Jamaica (3), Australia, Mexico, United States, Canada, Argentina, Brazil (2). 2004 in-market companies Italy, Germany, USA, Brazil, Switzerland. Additions since 2004 Austria, China, Argentina, Mexico, Ukraine, Belgium, Luxembourg, Australia, Russia, Jamaica, UK, Spain, Canada, Peru. 4
GROWTH STRATEGY Gruppo Campari s growth strategy aims to combine organic growth through strong brand building with shareholder value enhancing acquisitions. Spirits are the company s core business and where it focuses its acquisition efforts. The group s strategic thinking is driven by the desire to reach or enhance critical mass in key geographic markets. Drive faster growth of Global Priorities and incubate Regional Priorities with best-in-class marketing, innovation and brand building Generate steady growth in key Local Priorities through periodical renewals 50% ORGANIC GROWTH 50% EXTERNAL GROWTH Seek acquisitions in markets where Gruppo Campari controls its distribution Acquire local brands with strong equity to buil new distribution platforms Leverage on rigorous cost discipline to reinvest savings into strategic brand building Identify Specialty Brands with strong equity and pricing power Develop the Group s presence in high-potential markets Maintain financial discipline 5
A HISTORY OF SUCCESSFUL ACQUISITIONS Gruppo Campari focuses its external growth efforts on spirits and the strategic thinking is driven by the desire to reach or enhance critical mass in key geographic markets. Campari has a significant track record of successful acquisitions, having executed 24 since 1995, for an overall value of more than 2 billion. 1995 1999 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 * Distribution Company ** Contract beverage Packer *** Subsequently disposed 6
BRAND PORTFOLIO Gruppo Campari has a portfolio of over 50 premium and super premium brands in the following categories Aperitifs Liqueurs / Distillates / Others Gin Vodka Rum Soft Drink Whisky Sparkling Wines Tequila Gruppo Campari s portfolio also includes a range of still wines, Ready to Drink and other liqueurs and distillates 7
GLOBAL PRIORITIES Gruppo Campari international renowned brands include IRRESISTIBLY PROGRESSIVE SKYY è la vodka del nuovo millennio, che non ha timore di osare e di cambiare. Completamente orientata al futuro, SKYY Vodka ha rivoluzionato l'industria degli spirit con la sua esclusiva quadrupla distillazione e il processo di tripla filtrazione. APEROL SPRITZ #1 ITALIAN COCKTAIL* Aperol è l aperitivo perfetto: di colore arancio vivace, a bassa gradazione alcolica, con un gusto dolce-amaro inconfondibile. La sua massima espressione è Aperol Spritz, il social drink per antonomasia. RED PASSION Campari è un classico contemporaneo e carismatico. Il suo colore rosso vibrante e l aroma intenso sono alla base di alcuni tra i cocktail più famosi al mondo. Campari è un'icona mondiale di stile, di passione e di eccellenza italiana. BOTTLED BUT NEVER TAMED Wild Turkey è un'icona americana. Sotto la guida dei Master Distiller Jimmy e Eddie Russell, il nostro pluripremiato Kentucky Straight Bourbon Whiskey è apprezzato in tutto il mondo. La macinatura di segale di alta qualità, il livello di tostatura delle botti e il maggiore invecchiamento garantiscono un whisky pieno e consistente, ma allo stesso tempo incredibilmente amabile. DISCOVER THE PLEASURE OF APPLETON ESTATE Da oltre 265 anni coltiviamo la canna da zucchero creando, nella Appleton Estate, il migliore rum, aggiungendo il calore, la passione e lo spirito unico della nostra Giamaica ad ogni singola goccia. Appleton Estate è un rum eccellente: vivace e squisito, con un gusto intenso, complesso e aromatico. * Source: GfK Total Single Source Panel data - Italian market release 2014.2, processed by DCM S.p.A. 8
2015 FIGURES 9
2015 FIGURES 10
A WELL-BALANCED COCKTAIL FOR FUTURE GROWTH Increased business scale Strengthened global reach Empowered brand portfolio Strongly positioned for future growth Strong track record in acquisitions 6 th largest player worldwide in the premium spirits industry * 1,656.8 million revenues in FY 2015 (doubled business scale in the last 10 years) Sales in over 190 countries 90% of sales achieved in own route-to-market Increased in-market companies from 5 to 19 in the last 10 years Portfolio of 50+ premium brands, covering the most attracting categories Strong focus on 5 global priorities brands Upside growth from regional priorities and by leveraging strong platform from local priorities Growth Strategy leveraging on the expansion of the international footprint of own enriched brand portfolio and on external growth through acquisitions Half of the revenue growth achieved via acquisitions 24 acquisitions and 7 disposals completed External growth strategy consistently executed over time * Ranking based on Impact s top 10 Premium Spirits Brands Worldwide by Company, February 2015 Marketing is our engine of growth 11
SUSTAINABLE CAMPARI Camparistas are the first ambassadors of our Group around the world and one of the most important assets in assuring the success of our business. Nurturing each unique talent is crucial to embrace the challenges and opportunities presented by the market. Gruppo Campari actively promotes a culture of responsible drinking, having the deep conviction that its brands are a way to enjoy pleasurable moments, celebrations and sociable occasions. Our Group strongly condemns excessive, inappropriate or illegal consumption of alcohol. Consumer safety and worker well-being are key factors for Gruppo Campari s business: this is why Health and Safety in the workplace and protection of the Environment are the milestones upon which our Group bases its production activities. Gruppo Campari s focus is on providing the best products possible to our customers and consumers, and aims to reach this objective by always choosing superior, top-tier business partners. Establishing fair, transparent and loyal relationships enables our Group to offer products of the highest quality while constantly delivering a competitive advantage. In the last few years, Gruppo Campari has grown significantly both in terms of geographical expansion and number of people employed, and it is now directly present in several countries with different social landscapes. For this reason, our group is committed to promoting excellence, entrepreneurship and equal opportunities. 12
MISSION AND VALUES Gruppo Campari aims to remain a highly profitable and sustainable top player in the global spirits industry by combining its passion for brand building with entrepreneurial drive and functional excellence. 13
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