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Lion Nathan Limited
Disclaimer:Disclaimer:Disclaimer:Disclaimer:This document has been prepared for the general information of investors. The information contained herein contains forward looking statements which may be subject to events or uncertainties outside of Lion Nathan’s control. No warranty of accuracy or reliability is made and Lion Nathan takes no responsibility for accuracy or reliability of forecasts , the assumptions on which they are based or other forward looking statements. No investment decision should be taken on the basis of the information contained herein.
For additional information, contact:
Caroline Veitch, Investor Relations Director
phone: + 61 2 9290-6615e-mail: caroline.veitch@lion-nathan.com.au
or visit our website at: www.lion-nathan.com
Unless indicated otherwise, all $ are Australian
BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
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Why Lion Nathan is an attractive investment
BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
� Robust earnings and strong cashflow
� Focused and disciplined strategy
� Positioned for growth
� Disciplined capital management and acquisition criteria
� Doing the right thing for the long term
� Great people, great brands
4444
Lion Nathan Limited
� BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW
���� MARKET DATA MARKET DATA MARKET DATA MARKET DATA
� STRATEGY AND GROWTH DRIVERSSTRATEGY AND GROWTH DRIVERSSTRATEGY AND GROWTH DRIVERSSTRATEGY AND GROWTH DRIVERS
���� FY08 RESULTS & FINANCIALSFY08 RESULTS & FINANCIALSFY08 RESULTS & FINANCIALSFY08 RESULTS & FINANCIALS---- GroupGroupGroupGroup---- AustraliaAustraliaAustraliaAustralia---- New ZealandNew ZealandNew ZealandNew Zealand---- WineWineWineWine
���� APPENDIX APPENDIX APPENDIX APPENDIX
BUSINESS OVERVIEW BUSINESS OVERVIEW BUSINESS OVERVIEW BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
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Who we are
BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
Net Sales Revenue (A$m) 1,432 487 175 2,094
Share of total assets (%) 2 75% 14% 11% 100%
Share of total EBIT (excl Corp) 83% 14% 3% 100%
EBIT margin 3 31% 16% 1 9% 26%
Beer Market Share (est Sept 2008) 44% 52% n/a n/a
FY08 AUS NZ WINE TOTAL
- Alcoholic beverages: beer, wine, spirits and RTDs in Australia and NZ
- 8 key breweries, 2 craft breweries, 8 wineries, 44 retail outlets (Liquor King, NZ)
- 3,300 strong team in Australia, New Zealand, USA, UK
1 Owned brand beer margin ~ 25%2 AIFRS assets at September 2008 excluding corporate and unallocated assets3 EBIT before one-time, significant items and SGARA
6666
Our breweries…
BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
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7777
Our breweries…
BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
8888
Our wineries…
BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
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Our brands…Australia
BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
Lion Nathan’s brand portfolio includes…
• 3 of the top 5 beer brands in Australia (XXXX Gold, Tooheys New, Tooheys Extra Dry)
• The #1 mid strength beer in Australia (XXXX Gold)
• The #1 low alcohol beer in Australia (Hahn Premium Light)
• The #1 brand in 5 states / territories
10101010
Our brands…New Zealand
BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
Lion Nathan’s brand portfolio includes…
• 3 of the top 5 beer trademarks in New Zealand (Speight’s, Steinlager, Lion Red)
• The #1 beer trademark in New Zealand (Speight’s)
• The #1 premium beer trademark in New Zealand (Steinlager)
• A collection of 54 spirits brands (10 with RTD extensions), 40 wine brands (comprising both owned and agency brands)
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Our brands…Wine
BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
Lion Nathan’s brand portfolio includes…
• Internationally renowned wines, including a Decanter World Wine Awards Trophy – Red Rhone Varietal under �10 (St Hallett)
• The Wine Society’s 2008 Young Winemaker of the Year & winning wine (Mitchelton – Ben Haines & Mitchelton Print Shiraz)
• A collection of 61 agency wine brands which Lion Nathan distributes in Australia including premium wine brands Bollinger, Henschke, Brokenwood, Giant Steps, Sandalford and Villa Maria
12121212
2008 financial results - headlines
BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
Volume (beer, wine, spirits & RTDs)Volume (beer, wine, spirits & RTDs)Volume (beer, wine, spirits & RTDs)Volume (beer, wine, spirits & RTDs)
Net Sales RevenueNet Sales RevenueNet Sales RevenueNet Sales Revenue
Operating NPATOperating NPATOperating NPATOperating NPAT
Reported NPATReported NPATReported NPATReported NPAT
Cash realisation ratio*Cash realisation ratio*Cash realisation ratio*Cash realisation ratio*
Total Dividend per shareTotal Dividend per shareTotal Dividend per shareTotal Dividend per share
Earnings per share*Earnings per share*Earnings per share*Earnings per share*
* Before significant items
933 mL933 mL933 mL933 mL +3.9%+3.9%+3.9%+3.9%
$2,094 m$2,094 m$2,094 m$2,094 m +6.5%+6.5%+6.5%+6.5%
$278.3 m$278.3 m$278.3 m$278.3 m +4.2%+4.2%+4.2%+4.2%
$272.7 m$272.7 m$272.7 m$272.7 m
97.4%97.4%97.4%97.4%
42c42c42c42c
51.251.251.251.2
----3.3%3.3%3.3%3.3%
+4.4 pp+4.4 pp+4.4 pp+4.4 pp
+5.0%+5.0%+5.0%+5.0%
+2.0%+2.0%+2.0%+2.0%
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13131313
Group NPAT / EPS (pre-significant items)
BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
180.1
202.7
241.5259
267.2
315
278.3
38.738.738.738.7
41.741.741.741.7
45.345.345.345.3
48.648.648.648.6
51.251.251.251.250.250.250.250.2
2003200320032003 2004200420042004 2005200520052005 2006200620062006 2007200720072007 2008200820082008 2009200920092009
Operating NPAT ($M) EPS (cents)
300
EPS CAGR03-08
6%
NPAT CAGR03-0810%
GuidanceNPAT
10%-16%Increase on
FY08
AGAAPAGAAPAGAAPAGAAP AIFRSAIFRSAIFRSAIFRS
14141414
Total shareholder return
BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
* Global Peer Group is Anheuser Busch, APB, Foster’s, Heineken, InBev, Molson Coors, SAB Miller, San Miguel
TOTAL SHAREHOLDER RETURN (%) TOTAL SHAREHOLDER RETURN (%) TOTAL SHAREHOLDER RETURN (%) TOTAL SHAREHOLDER RETURN (%) (as at 31 Dec 2008)(as at 31 Dec 2008)(as at 31 Dec 2008)(as at 31 Dec 2008)
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1 Year 3 YearCAGR
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5 YearCAGR
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LNN ASX 100 Global Peer Group * (excluding LNN)
15151515
Return on capital employed
Investing for the future through brewery upgrades & Boag’sInvesting for the future through brewery upgrades & Boag’sInvesting for the future through brewery upgrades & Boag’sInvesting for the future through brewery upgrades & Boag’s
* Earnings before interest pre significant items, includes one-time items
ROCE %ROCE %ROCE %ROCE %
(EBI* / Funds Employed + (EBI* / Funds Employed + (EBI* / Funds Employed + (EBI* / Funds Employed + Brands at Cost)Brands at Cost)Brands at Cost)Brands at Cost)
BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
AGAAPAGAAPAGAAPAGAAP AIFRSAIFRSAIFRSAIFRS
9.510.0
12.212.7
13.1
11.7
13.1
2003 2004 2005 2006 2007 2008 2008 ex Boags
16161616
Lion Nathan and the financial crisis
� Demand for beer remains strong, particularly in Australia
� Consumer trends towards Premium, Mid-Strength and Low-Carb continue into Q1
� Funding position is secure
� Proactive approach to refinancing in 2008 and achieved good outcomes as a consequence
� No refinancing requirements until February 2010
� Cash flow is healthy
� Limited exposure to foreign currency movements
� Share price outperformed ASX 200 in FY08
BUSINESS OVERVIEW BUSINESS OVERVIEW BUSINESS OVERVIEW BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
17171717
FY09 Quarter 1 - headlines
Lion Nathan Australia
Lion Nathan New Zealand
Lion Nathan Wine
performing strongly, growing volume and net sales revenue
beer volumes in line with prior year with mix improvement resulting in net sales revenue growth
demand in key markets has softened heat and fires in Vic and SA impacting upon vintage
On track to deliver $On track to deliver $On track to deliver $On track to deliver $300m 300m 300m 300m ---- $$$$315m 315m 315m 315m NPAT, a 10NPAT, a 10NPAT, a 10NPAT, a 10----16% increase on FY0816% increase on FY0816% increase on FY0816% increase on FY08
Total Lion Nathan
BUSINESS OVERVIEW BUSINESS OVERVIEW BUSINESS OVERVIEW BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
* Guidance excludes impact of one-time or significant items in FY09
18181818
Lion Nathan Limited
� BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW
���� MARKET DATA MARKET DATA MARKET DATA MARKET DATA
� STRATEGY AND GROWTH DRIVERSSTRATEGY AND GROWTH DRIVERSSTRATEGY AND GROWTH DRIVERSSTRATEGY AND GROWTH DRIVERS
���� FY08 RESULTS & FINANCIALSFY08 RESULTS & FINANCIALSFY08 RESULTS & FINANCIALSFY08 RESULTS & FINANCIALS---- GroupGroupGroupGroup---- AustraliaAustraliaAustraliaAustralia---- New ZealandNew ZealandNew ZealandNew Zealand---- WineWineWineWine
���� APPENDIX APPENDIX APPENDIX APPENDIX
BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I MARKET DATA MARKET DATA MARKET DATA MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
��
19191919
The beer market is resilient, volumes are stable
Australian Beer Market (Volume) vs Australian Beer Market (Volume) vs Australian Beer Market (Volume) vs Australian Beer Market (Volume) vs Consumer Sentiment IndexConsumer Sentiment IndexConsumer Sentiment IndexConsumer Sentiment Index
BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I MARKET DATA MARKET DATA MARKET DATA MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
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Note: data source for market size changes from Jan 93 (World Drinks Trend/ LN alpha beta)
Volumes are stable, but value in growth
20202020
BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I MARKET DATA MARKET DATA MARKET DATA MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
The beer market is resilient, volumes are stable
New Zealand Beer Market New Zealand Beer Market New Zealand Beer Market New Zealand Beer Market
(Volume)(Volume)(Volume)(Volume)
0
50
100
150
200
250
300
350
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Mill
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Volumes are stable, but value in growth
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Mainstream Step-up Low Carb Mid-strength
Low Alcohol Premium Domestic Premium
International Premium
Craft
Australian market profile and trends
Australian beer marketAustralian beer marketAustralian beer marketAustralian beer market(Volumes)*(Volumes)*(Volumes)*(Volumes)*
BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I MARKET DATA MARKET DATA MARKET DATA MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
* Company estimates based on AC Nielsen data MAT to Dec 2008
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Our Australian beer portfolio by category
BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I MARKET DATA MARKET DATA MARKET DATA MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
CategoryCategoryCategoryCategory Lion Nathan Key brandsLion Nathan Key brandsLion Nathan Key brandsLion Nathan Key brands
Craft James Squire
International Premium Heineken, Beck’s, Amstel, Kirin
Domestic Premium Boag’s Premium, Hahn Premium
Step-up Tooheys Extra Dry, Barefoot Radler
Low Carb Hahn Super Dry, Boag’s Classic Blonde, Tooheys New White Stag
Mainstream 4.6% - 5.0% Tooheys New, West End, Boag’s Draught, XXXX Bitter, Emu Bitter
Mid-strength 3.0% - 3.5% XXXX Gold
Low-alcohol <3.0% Hahn Premium Light, Boag’s Premium Light
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23232323
Australian market profile - customers
Pack and Tap mixPack and Tap mixPack and Tap mixPack and Tap mix Customer Customer Customer Customer mixmixmixmix
BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I MARKET DATA MARKET DATA MARKET DATA MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
Pack
Tap
Club
Hotel / Bar
Integrated hotel
Retailer
Wholesaler
Tap beer is in decline, due partly to the move to Premiumisation as premium beers are generally served in glass bottles on-premise
Key customers = Woolworths and Coles who make up the bulk of the Retailer segment
24242424
New Zealand market profile
New Zealand beer marketNew Zealand beer marketNew Zealand beer marketNew Zealand beer market(Volumes)*(Volumes)*(Volumes)*(Volumes)*
BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I MARKET DATA MARKET DATA MARKET DATA MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
* Company estimates based on AC Nielsen data MAT to Dec 2008
Mainstream
Value
Low Carb
LowAlcohol
Premium
International Speciality
International Premium
Domestic Premium
Craft
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25252525
% NSR% NSR% NSR% NSR
Our New Zealand beer portfolio by category
CategoryCategoryCategoryCategory Lion Nathan Key brandsLion Nathan Key brandsLion Nathan Key brandsLion Nathan Key brands
Craft beer Mac’s
International Speciality Guinness, Leffe, Boddingtons, Kilkenny, Hoegaarden, Little Creatures
International Premium (5%) Corona, Stella Artois, Beck’s
Domestic Super Premium & Domesitic Premium
Steinlager PureSteinlager Classic
Mainstream (4%) Speight’s Gold Medal Ale, Lion Red, Waikato Draught, Speight’s Summit Lager
Value Tasman, Rheineck, Castlepoint, Ice Beer
Low alcohol Light Ice, Steinlager Premium Light
BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I MARKET DATA MARKET DATA MARKET DATA MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
% Vol% Vol% Vol% VolMainstream
Value
Low Carb
LowAlcohol
Premium
International Speciality
International Premium
Domestic Premium
Craft
26262626
7%
0%-3%
1%3% 4% 4%
31%
-1%
10%
-8%
35%
10% 6%
-5% -6%
79%
-11% -15% -20%
Australian Wine market profile – by varietal
White wineWhite wineWhite wineWhite wine
BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I MARKET DATA MARKET DATA MARKET DATA MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
* Company estimates based on AC Nielsen data MAT to Dec 2008
Red wineRed wineRed wineRed wine
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27272727
WhiteWhiteWhiteWhite
-4%
1%3%
21%
12%
3%
-6%
4%2%
25%
10%
-3%
Under $7 $7-$10 $10-$15 $15-$20 $20-$30 Over $30
MAT Growth Qtr Growth
Australian Wine market profile – by price point
BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I MARKET DATA MARKET DATA MARKET DATA MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
* Company estimates based on AC Nielsen data MAT to Dec 2008
-6%
1%2%
12%14%
3%
-7%
3%5%
12% 12%
-3%
Under $7 $7-$10 $10-$15 $15-$20 $20-$30 Over $30
MAT Growth Qtr Growth
1%
-6%
3%5% 6%
10%
6%
-3%
0%
18%
6%
-1%
Under $7 $7-$10 $10-$15 $15-$20 $20-$30 Over $30
MAT Growth Qtr Growth
RedRedRedRed SparklingSparklingSparklingSparkling
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28282828
Australian alcoholic beverages landscape
BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I BUSINESS OVERVIEW I MARKET DATA MARKET DATA MARKET DATA MARKET DATA I STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIX
X
LN opportunity
Size = segment value ($M); X = Lion Nathan share
LN strong hold today
Segment Value CAGR 06-08 (%)
Economic Profit (% of sales)
Dark RTD
Premium beer
Mainstream beer
Bottled wine
Cask wine Dark spirit
White RTD
White spirit
UnattractiveUnattractiveUnattractiveUnattractive
0000
1111
99992222
46464646
7777111125252525
Fine Wine
7777
Recent growth rate higher than 2 year CAGRRecent growth rate lower than 2 year CAGR
Attractive market segments
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29292929
Lion Nathan Limited
� BUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEWBUSINESS OVERVIEW
���� MARKET DATA MARKET DATA MARKET DATA MARKET DATA
� STRATEGY AND GROWTH DRIVERSSTRATEGY AND GROWTH DRIVERSSTRATEGY AND GROWTH DRIVERSSTRATEGY AND GROWTH DRIVERS
���� FY08 RESULTS & FINANCIALSFY08 RESULTS & FINANCIALSFY08 RESULTS & FINANCIALSFY08 RESULTS & FINANCIALS---- GroupGroupGroupGroup---- AustraliaAustraliaAustraliaAustralia---- New ZealandNew ZealandNew ZealandNew Zealand---- WineWineWineWine
���� APPENDIX APPENDIX APPENDIX APPENDIX
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERS STRATEGY & GROWTH DRIVERS STRATEGY & GROWTH DRIVERS STRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
30303030
We have a vision …
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
Sociability guides our vision, backed by great brands and great peopleSociability guides our vision, backed by great brands and great peopleSociability guides our vision, backed by great brands and great peopleSociability guides our vision, backed by great brands and great people
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31313131
… and defined strategies
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
GROWTH GROWTH GROWTH GROWTH BEYONDBEYONDBEYONDBEYOND
THE CORETHE CORETHE CORETHE CORE
- Continue to build ‘great people’ and culture
- Embed marketing, sales, operations and finance capability
- Maintain lowest cost position and leverage new brewery asset base
- Drive sustainable practices throughout the business
- Invest and drive value in premium and power brands
- Innovate against profitable market opportunities
- Maximise upside from Boag’s acquisition
- Optimise customer engagement and sales force effectiveness
- Build sales platforms against selected international growth opportunities
- Maximise value from spirits/RTD
- Widen the appeal of beer and promote responsible consumption
STRONG STRONG STRONG STRONG PLATFORMPLATFORMPLATFORMPLATFORM
GROWTH GROWTH GROWTH GROWTH FROM FROM FROM FROM
THE CORETHE CORETHE CORETHE CORE
32323232
NPAT outlook FY09
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
* FY09 guidance range excludes the impact of one-time and significant items
FY09 NPAT guidance of $300M FY09 NPAT guidance of $300M FY09 NPAT guidance of $300M FY09 NPAT guidance of $300M ---- $315M$315M$315M$315M
BOAG’SBOAG’SBOAG’SBOAG’S
LNA upLNNZ up
FY09*FY09*FY09*FY09*
272.7 M272.7 M272.7 M272.7 M
315 M315 M315 M315 M
300 M300 M300 M300 M
+16%+16%+16%+16%
+10%+10%+10%+10%
Full year of savings target A$15m
Hahn Super DryWhite StagSummitSteinlager Pure
Dilutive 08 to accretive 09
FY08FY08FY08FY08
5-7% increasein COGSanticipated
CORE CORE CORE CORE EARNINGS EARNINGS EARNINGS EARNINGS GROWTHGROWTHGROWTHGROWTH
INVESTINVESTINVESTINVESTSAVINGSSAVINGSSAVINGSSAVINGS
GROWTH GROWTH GROWTH GROWTH FROMFROMFROMFROM
INNOVATIONINNOVATIONINNOVATIONINNOVATION
COGS & COGS & COGS & COGS & FXFXFXFX4 drivers underpin F09
step up - offset by COGS & FX impact
BOAG’SBOAG’SBOAG’SBOAG’S
��
33333333
Great brands
� Focused effort around a group of high potential “power brands”
� Continue to invest behind our brands to enhance brand equity (8-10% of NSR is dedicated to brand marketing)
� FY08 Marketing spend up 7% excl Boag’s, up 17% including Boag’s
� Real successes in innovations in both Aust and NZ
� Growing brands in growing segments
� Creating a “customer pull” model
34343434
Core earnings growth – power brand strategyBUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
Volume
70%70%70%70%80%80%80%80%
30%20%
2004200420042004 2008e2008e2008e2008e
Margin
78%78%78%78% 87%87%87%87%
22% 13%
2004200420042004 2008e2008e2008e2008e
Volume
71%71%71%71% 77%77%77%77%
29% 23%
2004200420042004 2008e2008e2008e2008e
Margin
75%75%75%75% 82%82%82%82%
25% 18%
2004200420042004 2008e2008e2008e2008e
New ZealandNew ZealandNew ZealandNew Zealand
AustraliaAustraliaAustraliaAustralia
Power brands continuing to grow and improve margins
�
35353535
Accelerating sales CAGR
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
Based on net sales revenue (excl Boag’s)Based on net sales revenue (excl Boag’s)Based on net sales revenue (excl Boag’s)Based on net sales revenue (excl Boag’s)
AustraliaAustraliaAustraliaAustralia New ZealandNew ZealandNew ZealandNew Zealand
3.6
%3
.6%
3.6
%3
.6%
6.2
%6
.2%
6.2
%6
.2%
6.5
%6
.5%
6.5
%6
.5%
10 year
CAGR
3 year
CAGR
1 year
growth rate
0.2
%0
.2%
0.2
%0
.2%
1.3
%1.
3%
1.3
%1.
3%
5.6
%5
.6%
5.6
%5
.6%
10 year
CAGR
3 year
CAGR
1 year
growth rate
Successful innovation driving Successful innovation driving Successful innovation driving Successful innovation driving acceleration in sales growthacceleration in sales growthacceleration in sales growthacceleration in sales growth
36363636
Connecting with consumers
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
�
37373737
Australia - successful innovation
Hahn Super Dry
Barefoot Radler
Classic Blonde
Tooheys Extra Dry innovations
2%
6%
10%
F06F06F06F06 F07F07F07F07 F08F08F08F08
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
NPD / innovations launched in the last NPD / innovations launched in the last NPD / innovations launched in the last NPD / innovations launched in the last three years make up three years make up three years make up three years make up
10% 10% 10% 10% of the FY08 Net Sales Revenueof the FY08 Net Sales Revenueof the FY08 Net Sales Revenueof the FY08 Net Sales Revenue
38383838
0%
3%
10%
F06F06F06F06 F07F07F07F07 F08F08F08F08
New Zealand - successful innovation
Steinlager Pure
Speight’s Summit
Mac’s new products
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
NPD / innovations launched in the last NPD / innovations launched in the last NPD / innovations launched in the last NPD / innovations launched in the last three years make up three years make up three years make up three years make up
10% 10% 10% 10% of the FY08 Net Sales Revenueof the FY08 Net Sales Revenueof the FY08 Net Sales Revenueof the FY08 Net Sales Revenue
��
39393939
Speight’s Summit launched May 2008
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
� New Speight’s lager brewed with only natural ingredients
� “Don’t mess with nature” campaign an instant hit with consumers. Ranked a “favourite ad” by consumers within one month of launch
� Planned volume exceeded in FY08
� 90% weighted distribution achieved in two months
� Brand health measures ahead of target levels
� Highly successful tap launch
40404040
Tooheys White Stag launched September 2008
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
� First low carb offering in traditional mainstream segment
� 1/3 of the carbs of standard full strength beers
� Leveraging the recent Tooheys New campaign “Tooheys New White Stag is another great idea from Tooheys New”
� Supported by above-the-line and below-the-line marketing activities
� Strong initial distributions achieved and positive consumer feedback on brew
��
41414141
Steinlager Pure
� Highly successful new premium beer
� 100% New Zealand ingredients
� > 1 million cases sold and growing strongly
� Selling at $26.99 a 12 pack, a ~$5 premium to Heineken
� Won grocery “new product of the year” in 2008, (across all categories of grocery)
� Successfully flanked Steinlager Classic, Total Steinlager trademark up 44% in FY08
� Now being exported to US, Australia and UK
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
42424242
Investing in our breweries
Investing in our breweries� We have invested across the brewing process,
in 4 major breweries, XXXX Castlemaine, Tooheys, Auckland and Boag’s
� Project Invest – upgrades to XXXX and Tooheys breweries are nearing completion, on target to deliver $15m savings per annum once complete
� The investment in our breweries enables:
� Higher levels of flexibility � Greater brewing capacity� A reduced environmental footprint� Reduced costs� Even better beer
��
43434343
Capex
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
$ m
illio
n$
mill
ion
$ m
illio
n$
mill
ion
Investment period will continue into FY09, with forecast capex spend of
$225m to $275m
7676 7676
109
109
109
109
111
111
111
111
FY05 FY06 FY07 FY08 FY09
RangeAuckland breweryBoag’sTooheys & XXXX upgradesUnderlying
25
22
52
25
22
52 2
752
752
752
752
25
22
52
25
22
5
44444444
Scope of brewery upgrades
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
UTILITIESUTILITIESUTILITIESUTILITIES
- Replacement and automation of existing boilers � �
- Upgrade air, refrigeration, electrical & energy management systems � �
- New waste water recovery system N/A �
BREWHOUSE AND CELLARSBREWHOUSE AND CELLARSBREWHOUSE AND CELLARSBREWHOUSE AND CELLARS
- Upgrade brewhouse automation capacity �
- Automation of cellars including yeast handling � N/A
- New brewhouse, fermentation vessels � � �
FILTRATIONFILTRATIONFILTRATIONFILTRATION
- Replace and upgrade filtration technology and associated services � �
PACKAGING DEVELOPMENTPACKAGING DEVELOPMENTPACKAGING DEVELOPMENTPACKAGING DEVELOPMENT
- New can line � N/A
- Upgrades of bottling lines with increased multipack capability � �
- Introduction of robotics for palletising � �
- Relocate new and existing packaging equipment in building extension N/A �
- General packaging upgrades �
SCOPE TOOHEYS XXXX BOAG’S
Extensive upgrade reducing future capex requirementsExtensive upgrade reducing future capex requirementsExtensive upgrade reducing future capex requirementsExtensive upgrade reducing future capex requirements
��
45454545
Auckland Brewery on track
F07F07F07F07 F08F08F08F08 F09F09F09F09
Announced new
brewery and facility
Sold Auckland Brewery
site & purchased greenfield
site
Earthworks commenced Construction
commencedNew site
fully operational
First brew from new brewery
anticipated
� Construction of the new brewery in Auckland is progressing to plan
� The new facility is expected to deliver NZ$15m in EBITDA savings per annum once complete
� Total cost NZ$250m
� Sold current site for NZ$162m� $50m received with remainder payable
when current site is vacated
F10F10F10F10 F11F11F11F11
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
46464646
Auckland Brewery on track
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
��
47474747
Boag’s brewery investment
F08F08F08F08 F09F09F09F09
Announced investment
Construction commenced
Fully operational
F10F10F10F10
First brew anticipated
� Boag’s beers are brewed exclusively at the Esk brewery in Launceston, Tasmania
� Investment in the brewery was announced in June 2008, increasing capacity from 50 million litres to 100 million litres
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
48484848
Boag’s – a key growth driver
� ������������������������������������������������������������ ��� �!����� "�������##����$
� Acquisition of Boag’s completed 2 January 2008
� Highly complementary to our existing portfolio of brands
� Successful fast-track integration
� Boag’s Draught made available on tap on the mainland in FY08
� Investing in the brand – with new packaging and advertising
� Committed to Tasmanian provenance (investing in Boag’s brewery)
� Volumes for the Boag’s trademark were up 6% in the second half
��
49494949
Our people
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
� High people engagement scores
� High customer satisfaction and engagement scores
� Invested in sales and marketing as a core competency
� Invested in sales technology to improve productivity
� In-sourced strategy development to allow our people to guide our future and to improve engagement
� Consistently recognised as a leading employer with top quartile people engagement scores
� Extended planning horizon so that we do the right thing for the long term
50505050
People engagement drives customer and consumer engagement
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
��
51515151
People engagement at 85%
100%100%100%100%
Below Global High Below Global High Below Global High Below Global High Performance Performance Performance Performance
Engagement ZoneEngagement ZoneEngagement ZoneEngagement Zone
Engaging ZoneEngaging ZoneEngaging ZoneEngaging Zone
Global High Performance ZoneGlobal High Performance ZoneGlobal High Performance ZoneGlobal High Performance Zone
Top Quartile of Global High Top Quartile of Global High Top Quartile of Global High Top Quartile of Global High Performance ZonePerformance ZonePerformance ZonePerformance Zone
10%10%10%10%
20%20%20%20%
30%30%30%30%
40%40%40%40%
50%50%50%50%
60%60%60%60%
70%70%70%70%
80%80%80%80%
90%90%90%90%Global High Performance Global High Performance Global High Performance Global High Performance Companies Norm Average Companies Norm Average Companies Norm Average Companies Norm Average 80%80%80%80%
Australian National Norm Australian National Norm Australian National Norm Australian National Norm Average 71%Average 71%Average 71%Average 71%
Source: Towers Perrin ISR, LN People and Customer Engagement Survey 2008
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
85% of Lion people say they are fully
engaged
People engagement benchmarked as global high performancePeople engagement benchmarked as global high performancePeople engagement benchmarked as global high performancePeople engagement benchmarked as global high performance
52525252
Australia
NZ
Highly engagedEngagedNeutral / disengaged
Customer engagement
80%
87%
Lion Nathan ranks number 1 in Customer satisfaction Lion Nathan ranks number 1 in Customer satisfaction Lion Nathan ranks number 1 in Customer satisfaction Lion Nathan ranks number 1 in Customer satisfaction surveys in Aus & NZsurveys in Aus & NZsurveys in Aus & NZsurveys in Aus & NZ
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
80% of our Australian customers and 87% of our NZ customers are
positively engaged
��
53535353
Doing the right thing for the long term
We will continue enhancing our Sustainability
reporting
We are assessing our carbon
footprint to highlight reduction
opportunities
$We have committed to invest at at at at
least 1% of our NPAT each least 1% of our NPAT each least 1% of our NPAT each least 1% of our NPAT each year year year year on voluntary community
initiatives
Sustainability Leadership Group formed from cross
functional leaders
Sustainability Ambassador program launched
Our new office locations in Sydney & Auckland
incorporate environmental design
elements
BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I BUSINESS OVERVIEW I MARKET DATA I STRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERSSTRATEGY & GROWTH DRIVERS I FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIXI FY08 RESULTS I APPENDIX
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