1
2008 First Quarter Results
Conference call
14 May 2008
2
Results highlights and sales review
Bob Kunze-Concewitz, CEO
3
First quarter ended 31 March 2008
> In an expected tougher environment we are performing as planned
> In small quarter, net sales were negatively affected by changes in US portfolio (perimeter and
SKYY destocking) and forex
> Achieved objective of offsetting Tequila 1800 profit loss via new brands (Cabo Wabo, X-Rated
and new agency brands)
> A&P shift from Q1 to Q2 and Q3 on the back of SKYY Infusions launch and CampariSoda
return to tv advertising
> Continued strong cash generation driven by improvement in operating working capital (€ 53.6 m
vs Dec 07)
Q1 2008
% change % change
€ million at actual forex at constant forex
Net sales
190.9 -2.9% -0.7%
Contribution after A&P
(1)
76.7 1.1% 3.3%
EBITDA before one-off's
47.3 1.8% 3.9%
EBITDA
50.2 8.0% 10.1%
EBIT before one-off's
42.1 1.1% 3.4%
Operating profit = EBIT
45.0 8.0% 10.3%
Group's pretax profit
40.1 6.8% 8.6%
(1)
According to new P&L format
4
2008 First quarter net sales - Growth drivers
> Organic growth was soft as expected driven by previously announced SKYY destocking, ahead
of franchise relaunch, and tough comps (Q107: +11.3% vs Q106)
> Negative change in perimeter related to termination of Tequila 1800, partly offset by positive
contribution of Cabo Wabo, X-Rated, Bowmore and Flor de Cana
> Negative foreign exchange impact was attributable to significant US Dollar decline (-12.6%)
Q1 2007 Change in perimeter
(*)
Organic grow th Forex impact Q1 2008
€ (4.1) m
-2.1%
€ (4.1) m
-2.1%
€ 190.9m
€196.6m
€ 2.6 m
+1.3%
-2.9%
(*) Breakdown of change in perimeter
€ m
Acquisitions
(1)
5.3
Agency brands
(2)
(9.4)
Total external growth (4.1)
(1) Cabo Wabo ; X-Rated Brands
(2) Tequila 1800 ; Bowmore and Flor de Cana (US)
5
Net sales analysis by region
Italy Europe
Americas
> Good organic growth across all key categories in a tough
market environment
> Solid progression across major markets
> Negative change in perimeter due to Tequila 1800 distribution agreement termination, partly
offset by Cabo Wabo, X-Rated, Bowmore and Flor de Cana
> Negative organic growth driven by planned US SKYY destocking and tough comps (strong
Q1 ahead of price increase in Apr 07)
> Sizable negative US$ effect
Q1 2007 External Organic Forex Q1 2008
€
95.0 m +0.0% +4.4% +0.0% € 99.2 m
+4.4%
Q1 2007 External Organic Forex Q1 2008
+0.0% +7.5% -0.6% € 39.1 m
€
36.6 m
+6.9%
Q1 2007 External Organic Forex Q1 2008
-7.4% -8.7% -6.5% € 44.3 m
€
57.3 m
-22.6%
6
Net sales analysis by segment
Soft drinks
Spirits
Wines
> Overall organic sales driven by planned US SKYY destocking and tough
comps (Q1 ahead of price increase in Apr 07)
> Negative change in perimeter due to Tequila 1800 distribution agreement
termination, partly offset by Cabo Wabo, X-Rated, Bowmore and Flor de
Cana
> Continued strong performance of Cinzano mitigated
by tough comps (Q107: +24,5%) and a weak quarter
on Riccadonna in Australasia
> Excellent performance driven by strong Crodino as well
as good carbonated soft drinks results
Q1 2007 External Organic Forex Q1 2008
€ 139.2 m
-2.9% -1.6% -2.7% € 129.1 m
-7.2%
Q1 2007 External Organic Forex Q1 2008
€ 28.1 m +0.0% +12.8% +0.0%
€
31.7 m
+12.8%
Q1 2007 External Organic Forex Q1 2008
€ 25.7 m +0.0% € 26.5 m
+3.7%
-0.4%
+3.3%
7
Q1 2008 consolidated net sales : € 190.9 m
Net sales breakdown
Breakdown by region
Breakdown by segment
Italy
52.0%
Europe
20.5%
Americas
(1)
23.2%
RoW and
Duty Free
4.3%
(48.3% in 2007)
(1) Include:
USA 17.9%
Brazil 3.9 %
Other 1.5 %
(3.9% in 2007)
(29.1% in 2007)
(18.6% in 2007)
Soft Drinks
16.6%
Other
1.9%
Wines
13.9%
Spirits
67.6%
(14.3% in 2007)
(70.8% in 2007)
(13.1% in 2007)
(1.8% in 2007)
8
Review of main brands
% change in sales value
Q1 2008 / Q1 2007
Spirits
at constant FX at actual FX
Campari
1.4% 0.9%
> Overall satisfactory progression, with impact of positive consumption mitigated by tough
shipments comps (Q107: +10.7%)
SKYY
-2.3% -13.2%
> Weak quarter in US shipments due to planned destocking and tough comps (Q107: +21.5%),
ahead of price increase
CampariSoda
2.8% 2.8%
> Positive quarter in Italy, ahead of start of new campaign
Aperol
11.6% 11.5%
> Double digit organic growth driven by strong performance in Italy and Germany
Brazilian brands
-20.3% -15.4%
> Weak shipments in a very small quarter due to early Carnival; Nielsen growth continued double
digit
Cynar
-9.3% -8.9%
> Good performance in Europe mitigated by weak shipments in Brazil
Glen Grant
-15.5% -15.6%
> Weak performance in a small quarter (representing 15% of volumes)
9
Review of main brands (cont’d)
% change in sales value
Q1 2008 / Q1 2007
Wines
at constant FX at actual FX
Cinzano
sparkling wines
9.3% 9.1%
> Strong performance mainly driven by innovation and brand building in major markets
(Germany and Italy)
Cinzano
vermouths
9.7% 8.5%
> Strong result achieved in major markets, in particular Eastern Europe
Sella & Mosca
2.2% 2.2%
> Satisfactory results in Europe mitigated by weak shipments in US
Soft drinks
Crodino
14.1% 14.1%
> Continued very strong results
10
Q1 2008 consolidated results
Paolo Marchesini, CFO
11
Q1 2007
Previous format New format
€ m % € m %
Net sales 196.6 100.0% Net sales 196.6 100.0%
COGS (81.7) -41.6%
COGS
(1)
(88.9) -45.2%
Gross margin 114.8 58.4%
Gross margin after distribution costs 107.6 54.8%
Advertising and promotion (31.8) -16.2% Advertising and promotion (31.8) -16.2%
Selling and distribution expenses (25.3) -12.9%
Contribution after A&P 75.8 38.6%
Trading profit 57.7 29.4%
G&A and other operating income/expenses (16.0) -8.2%
SG&
A
(2)
(34.2) -17.4%
EBIT before one-off's 41.7 21.2% EBIT before one-off's 41.7 21.2%
One-off's 0.0 0.0% One-off's 0.0 0.0%
Operating profit = EBIT 41.7 21.2% Operating profit = EBIT 41.7 21.2%
Change in P&L format
> Key changes:
Selling and distribution expenses Distribution expenses to COGS (COGS at point of sale)
Selling expenses to SG&A
> Therefore:
> Gross margin > Gross margin after distribution expenses
> Trading profit > CAA&P (excl. selling expenses)
> EBIT = EBIT
CONSOLIDATED INCOME STATEMENT
(1)
Cost of materials + Production costs + distribution expenses
(2)
G&A + other operating income/expenses + selling expenses
12
Consolidated EBIT
> Increase in COGS by 20bp on net sales
> A&P decrease on net sales mainly driven by a different phasing of advertising initiatives quarter on quarter
> Increase in contribution after A&P of 1.1% was composed of:
- organic growth: +3.7%
- change in perimeter: -0.4% (contribution of Cabo Wabo and X-Rated almost offset profit lost from termination of
Tequila 1800)
- forex impact: -2.2%
> SG&A increased by 1.1% overall. At constant forex: +3.2%
> One-off’s of € 2.9 m reflect capital gain from real estate disposal (warehouse in Italy), net of provision for assets
write-downs and personnel restructuring cost
(1)
Cost of materials + Production costs + distribution expenses
(2)
G&A + other operating income/expenses + selling expenses
(3)
According to IAS/IFRS net exceptional income (renamed as one-off’s) is reclassified as a component of operating profit.
(€ million) Q1 2008 Q1 2007
Change at
actual forex
Change at
constant forex
Net sales 190.9
100.0%
196.6
100.0% -2.9% -0.7%
COGS
(1)
(86.7) -45.4% (88.9) -45.2% -2.6%
Gross margin after distribution costs 104.3
54.6%
107.6
54.8% -3.1%
Advertising and promotion (27.6) -14.5% (31.8) -16.2% -13.2%
Contribution after A&P 76.7
40.2%
75.8
38.6% 1.1% +3.3%
SG&A
(2)
(34.6) -18.1% (34.2) -17.4% 1.1%
EBIT before one-off's 42.1
22.1%
41.7
21.2% 1.1% +3.4%
One-off's
(3)
2.9 1.5% 0.0 0.0% -
Operating profit = EBIT 45.0
23.6%
41.7
21.2% 8.0% +10.3%
Other information:
Depreciation (5.1) -2.7% (4.8) -2.4% 7.3%
EBITDA before one-off's 47.3
24.8%
46.4
23.6% 1.8% +3.9%
EBITDA
50.2 26.3% 46.5 23.6% 8.0%
+10.1%
13
Consolidated Group’s pretax profit
> Net financial expenses up due to floating rates increase quarter on quarter
> Increase in minority interests due to recognition of Cabo Wabo minorities
(€ million) Q1 2008 Q1 2007
Change at
actual forex
Change at
constant forex
Operating profit = EBIT 45.0 23.6% 41.7 21.2% 8.0%
+10.3%
Net financial income (expenses) (4.5) -2.3% (4.2) -2.1% 7.2%
Income from associates 0.1 0.0% 0.0 0.0% 55.0%
Pretax profit
40.6 21.3% 37.6 19.1% 8.2%
Minority interests (0.6) -0.3% (0.0) 0.0% 0.0%
Group's pretax profit 40.1 21.0% 37.5 19.1% 6.8% +8.6%
14
Analysis of net debt
> Net debt on ordinary activities down by € 20.3 m to € 267.8 after:
> Payment of 80% stake in Cabo Wabo ($ 80.8 m) in January 2008
> Sale of warehouse in Italy (€ 6.7 m)
> Total net debt down by € 1.9 m to 286.2 after provisioning € 18.4 m for exercise cost of Cabo
Wabo put/call options
€ million
31 March 2008 31 December 2007
Cash and cash e
q
uivalents
191.0 199.8
Pa
y
ables to banks
(99.7) (114.4)
Real estate lease
p
a
y
ables
(3.2) (3.2)
Private
p
lacement and bond issues
(11.6) (17.3)
Other assets or liabilities
1.1 1.3
Total short-term cash/(debt) 77.6 66.3
Payables to banks
(1.8) (1.8)
Real estate lease
p
a
y
ables
(12.1) (12.9)
Private
p
lacement and bond issues
(330.7) (338.8)
Other financial
p
a
y
ables
(0.8) (1.0)
Total medium to long-term cash/(debt)
(345.4) (354.4)
Total cash/(debt) on ordinary activities
(267.8) (288.1)
Estimated debt for possible exercise of put option on
remainin
g
Cabo Wabo stake
(1)
(18.4) 0.0
Total net cash/(debt)
(286.2) (288.1)
(1) Estimated debt for possible exercise of put option (15% and 5% to be exercised in 2012 and 2015 respectively) on remaining 20% minority stake in Cabo Wabo
15
Net Working Capital
> On a like for like basis net working capital as % of sales down from 25.1% to 24.9%
> Net working capital in March 08 decreases by € 53.6 m vs Dec 07, mainly due to expected
reduction in trade receivables following seasonal peak
(€ million)
31 Mar 2008 31 Dec 2007 Change 31 Mar 2007
Trade receivables 202.9 280.0 (77.1) 186.0
Inventories 172.8 166.9 5.8 179.2
Trade payables (138.9) (156.6) 17.6 (127.6)
Net Working Capital 236.7 290.4 (53.6) 237.6
Last 12 months sales to 31 Mar 2008 951.9 957.5 (5.6) 946.9
NWC / LTM (%)
(1)
24.9% 30.3% 25.1%
(1) LTM = Last 12 Months
16
Outlook
Bob Kunze-Concewitz, CEO
17
Outlook
> Outlook for 2008 remains unchanged despite tougher market
environment
– Confirmed good performance in major Italian market
– US business expected to return to growth following completion of
portfolio changes in Q1
– Brazilian business expected to leverage positive consumption trends
across portfolio
– US dollar negative effects expected to continue
18
Supplementary schedules
Schedule - 1 Analysis of net sales growth by segment and region
Schedule - 2 Consolidated income statement
Schedule - 3 Consolidated income statement new format
Schedule - 4 Trading profit/CAA&P by business area new format
Schedule - 5 Average exchange rates
19
Supplementary
schedule - 1
Net sales analysis by segment and region
Consolidated net sales by segment
Q1 2008 Q1 2007 Change of which:
€ m % € m % %
external organic currency
Spirits 129.1 67.6% 139.2 70.8%
-7.2%
-2.9% -1.6% -2.7%
Wines 26.5 13.9% 25.7 13.1% 3.3% 0.0% 3.7% -0.4%
Soft drinks 31.7 16.6% 28.1 14.3%
12.8%
0.0% 12.8% 0.0%
Other revenues 3.6 1.9% 3.6 1.8% 1.3% 0.0% 8.2% -6.9%
Total 190.9 100.0% 196.6 100.0% -2.9% -2.1% 1.3% -2.1%
Consolidated net sales by region
Q1 2008 Q1 2007 Change
of which:
€ m % € m %
% external organic currency
Italy 99.2 52.0% 95.0 48.3% 4.4% 0.0% 5.2% 0.0%
Europe 39.1 20.5% 36.6 18.6% 6.9% 0.0% 7.5% -0.6%
Americas (1) 44.3 23.2% 57.3 29.1% -22.6% -7.4% -8.7% -6.5%
RoW & Duty Free 8.3 4.3% 7.7 3.9% 7.8% 1.5% 8.7% -2.4%
Total 190.9 100.0% 196.6 100.0% -2.9%
-2.1% 1.3% -2.1%
(1) Breakdown of Americas
Q1 2008 Q1 2007 Change of which:
€ m % € m %
%
external organic currency
USA 34.2 77.1% 45.7 79.8%
-25.2%
-9.5% -7.0% -8.6%
Brazil 7.4 16.6% 9.1 15.9% -19.1% 0.0% -23.7% 4.7%
Other countries 2.8 6.3% 2.5 4.3% 10.8% 5.7% 14.9% -8.1%
Total 44.3 100.0% 57.3 100.0% -22.7% -7.4% -8.7% -6.5%
20
Supplementary
schedule - 2
Consolidated income statement
Q1 2008 Q1 2007 Chan
g
e
€ m % € m % %
Net sales (1) 190.9 100.0% 196.6 100.0% -2.9%
COGS
(2)
(86.7) -45.4% (88.9) -45.2% -2.6%
Gross margin after distribution costs 104.3 54.6% 107.6 54.8% -3.1%
Advertising and promotion (27.6) -14.5% (31.8) -16.2% -13.2%
Contribution after A&P
76.7 40.2% 75.8 38.6% 1.1%
SG&A
(3)
(34.6) -18.1% (34.2) -17.4% 1.1%
EBIT before one-off's 42.1 22.1% 41.7 21.2% 1.1%
One-off's 2.9 1.5% 0.0 0.0%
Operating profit = EBIT 45.0 23.6% 41.7 21.2% 8.0%
Net financial income (expenses) (4.5) -2.3% (4.2) -2.1% 7.2%
Income from associates 0.1 0.0% 0.0 0.0% 55.0%
Pretax profit 40.6 21.3% 37.6 19.1% 8.2%
Minority interests (0.6) -0.3% (0.0) 0.0%
Group's pretax profit 40.1 21.0% 37.5 19.1% 6.8%
Other information:
Depreciation (5.1) -2.7% (4.8) -2.4% 7.3%
EBITDA before one-off's 47.3 24.8% 46.4 23.6% 1.8%
EBITDA 50.2 26.3% 46.5 23.6% 8.0%
Notes:
(1)
Net of discounts and excise duties
(2)
Cost of materials + Production costs + distribution expenses
(3)
G&A + other operating income/expenses + selling expenses
21
Supplementary
schedule - 3
Consolidated income statement new format
(1)
Cost of materials + Production costs + distribution expenses
(2)
G&
A +
o
th
e
r
ope
r
a
tin
g
in
co
m
e/e
x
pe
n
ses
+
se
llin
g
e
x
pe
n
ses
Q1 2007
Previous format New format
€ m % € m %
Net sales 196.6 100.0% Net sales 196.6 100.0%
COGS (81.7) -41.6%
COGS
(1)
(88.9) -45.2%
Gross margin 114.8 58.4%
Gross margin after distribution costs 107.6 54.8%
Advertising and promotion (31.8) -16.2% Advertising and promotion (31.8) -16.2%
Selling and distribution expenses (25.3) -12.9%
Contribution after A&P 75.8 38.6%
Trading profit 57.7 29.4%
G&A and other operating income/expenses (16.0) -8.2%
SG&A
(2)
(34.2) -17.4%
EBIT before one-off's 41.7 21.2% EBIT before one-off's 41.7 21.2%
One-off's 0.0 0.0% One-off's 0.0 0.0%
Operating profit = EBIT 41.7 21.2% Operating profit = EBIT 41.7 21.2%
Q2 2007
Previous format New format
€ m % € m %
Net sales 244.0 100.0% Net sales 244.0 100.0%
COGS (103.2) -42.3%
COGS
(1)
(112.2) -46.0%
Gross margin 140.8 57.7%
Gross margin after distribution costs 131.8 54.0%
Advertising and promotion (48.0) -19.7% Advertising and promotion (48.0) -19.7%
Selling and distribution expenses (26.7) -11.0%
Contribution after A&P 83.8 34.3%
Trading profit 66.0 27.0%
G&A and other operating income/expenses (14.9) -6.1%
SG&A
(2)
(32.7) -13.4%
EBIT before one-off's 51.1 20.9% EBIT before one-off's 51.1 20.9%
One-off's (1.7) -0.7% One-off's (1.7) -0.7%
Operating profit = EBIT 49.4 20.3% Operating profit = EBIT 49.4 20.3%
22
Supplementary
schedule - 3
Consolidated income statement new format (cont’d)
(1)
Cost of materials + Production costs + distribution expenses
(2)
G&
A +
o
th
e
r
ope
r
a
tin
g
in
co
m
e/e
x
pe
n
ses
+
se
llin
g
e
x
pe
n
ses
Q3 2007
Previous format New format
€ m % € m %
Net sales 204.0 100.0% Net sales 204.0 100.0%
COGS (88.7) -43.5%
COGS
(1)
(96.4) -47.2%
Gross margin 115.3 56.5%
Gross margin after distribution costs 107.7 52.8%
Advertising and promotion (37.5) -18.4% Advertising and promotion (37.5) -18.4%
Selling and distribution expenses (24.8) -12.2%
Contribution after A&P 70.1 34.4%
Trading profit 53.0 26.0%
G&A and other operating income/expenses (15.6) -7.6%
SG&A
(2)
(32.8) -16.1%
EBIT before one-off's 37.3 18.3% EBIT before one-off's 37.3 18.3%
One-off's 0.4 0.2% One-off's 0.4 0.2%
Operating profit = EBIT 37.7 18.5% Operating profit = EBIT 37.7 18.5%
Q4 2007
Previous format New format
€ m % € m %
Net sales 312.9 100.0% Net sales 312.9 100.0%
COGS (133.5) -42.7%
COGS
(1)
(143.8) -46.0%
Gross margin 179.4 57.3%
Gross margin after distribution costs 169.1 54.0%
Advertising and promotion (57.3) -18.3% Advertising and promotion (57.3) -18.3%
Selling and distribution expenses (28.2) -9.0%
Contribution after A&P 111.8 35.7%
Trading profit 94.0 30.0%
G&A and other operating income/expenses (20.6) -6.6%
SG&A
(2)
(38.5) -12.3%
EBIT before one-off's 73.3 23.4% EBIT before one-off's 73.3 23.4%
One-off's (1.6) -0.5% One-off's (1.6) -0.5%
Operating profit = EBIT 71.7 22.9% Operating profit = EBIT 71.7 22.9%
23
Supplementary
schedule - 3
Consolidated income statement new format (cont’d)
(1)
Cost of materials + Production costs + distribution expenses
(2)
G&
A +
o
th
e
r
ope
r
a
tin
g
in
co
m
e/e
x
pe
n
ses
+
se
llin
g
e
x
pe
n
ses
Previous format New format
€ m % € m %
Net sales 440.6 100.0% Net sales 440.6 100.0%
COGS (185.0) -42.0%
COGS
(1)
(201.1) -45.7%
Gross margin 255.6 58.0%
Gross margin after distribution costs 239.4 54.3%
Advertising and promotion (79.8) -18.1% Advertising and promotion (79.8) -18.1%
Selling and distribution expenses (52.1) -11.8%
Contribution after A&P 159.6 36.2%
Trading profit 123.7 28.1%
G&A and other operating income/expenses (31.0) -7.0%
SG&A
(2)
(66.9) -15.2%
EBIT before one-off's 92.7 21.0% EBIT before one-off's 92.7 21.0%
One-off's (1.6) -0.4% One-off's (1.6) -0.4%
Operating profit = EBIT 91.1 20.7% Operating profit = EBIT 91.1 20.7%
Previous format New format
€ m % € m %
Net sales 644.6 100.0% Net sales 644.6 100.0%
COGS (273.7) -42.5%
COGS
(1)
(297.5) -46.2%
Gross margin 370.9 57.5%
Gross margin after distribution costs 347.1 53.8%
Advertising and promotion (117.4) -18.2% Advertising and promotion (117.4) -18.2%
Selling and distribution expenses (76.9) -11.9%
Contribution after A&P 229.7 35.6%
Trading profit 176.7 27.4%
G&A and other operating income/expenses (46.6) -7.2%
SG&A
(2)
(99.7) -15.5%
EBIT before one-off's 130.1 20.2% EBIT before one-off's 130.1 20.2%
One-off's (1.2) -0.2% One-off's (1.2) -0.2%
Operating profit = EBIT 128.8 20.0% Operating profit = EBIT 128.8 20.0%
H1 2007
9M 2007
24
Supplementary
schedule - 3
Consolidated income statement new format (cont’d)
(1)
Cost of materials + Production costs + distribution expenses
(2)
G&
A +
o
th
e
r
ope
r
a
tin
g
in
co
m
e/e
x
pe
n
ses
+
se
llin
g
e
x
pe
n
ses
FY 2007
Previous format New format
€ m % € m %
Net sales 957.5 100.0% Net sales 957.5 100.0%
COGS (407.2) -42.5%
COGS
(1)
(441.4) -46.1%
Gross margin 550.3 57.5%
Gross margin after distribution costs 516.2 53.9%
Advertising and promotion (174.6) -18.2% Advertising and promotion (174.6) -18.2%
Selling and distribution expenses (105.1) -11.0%
Contribution after A&P 341.5 35.7%
Trading profit 270.6 28.3%
G&A and other operating income/expenses (67.2) -7.0%
SG&A
(2)
(138.1) -14.4%
EBIT before one-off's 203.4 21.2% EBIT before one-off's 203.4 21.2%
One-off's (2.8) -0.3% One-off's (2.8) -0.3%
Operating profit = EBIT 200.6 20.9% Operating profit = EBIT 200.6 20.9%
25
Supplementary
schedule - 4
Trading profit/CAA&P by business area new format
SPIRITS WINES
Previous format New format Previous format New format
€ m % € m % € m % € m %
Net sales 318.7 100.0% Net sales 318.7 100.0% Net sales 56.9 100.0% Net sales 56.9 100.0%
COGS (122.2) -38.3% COGS (31.5) -55.3%
COGS
(1)
(131.2) -41.2%
COGS
(1)
(33.8) -59.5%
Gross margin 196.5 61.7% Gross margin 25.4 44.7%
Gross margin after distribution costs 187.5 58.8% Gross margin after distribution costs 23.1 40.5%
Advertising and promotion (64.0) -20.1% Advertising and promotion (64.0) -20.1% Advertising and promotion (10.7) -18.8% Advertising and promotion (10.7) -18.8%
Selling and distribution expenses (34.8) -10.9% Selling and distribution expenses (8.9) -15.6%
Contribution after A&P 123.4 38.7% Contribution after A&P 12.3 21.7%
Trading profit 97.7 30.7% Trading profit 5.9 10.3%
SOFT DRINKS OTHERS
Previous format New format Previous format New format
€ m % € m % € m % € m %
Net sales 57.4 100.0% Net sales 57.4 100.0% Net sales 7.6 100.0% Net sales 7.6 100.0%
COGS (25.1) -43.8% COGS (6.2) -81.6%
COGS
(1)
(29.8) -52.0%
COGS
(1)
(6.2) -82.4%
Gross margin 32.3 56.2% Gross margin 1.4 18.4%
Gross margin after distribution costs 27.6 48.0% Gross margin after distribution costs 1.3 17.6%
Advertising and promotion (5.0) -8.8% Advertising and promotion (5.0) -8.8% Advertising and promotion (0.0) -0.2% Advertising and promotion (0.0) -0.2%
Selling and distribution expenses (8.3) -14.5% Selling and distribution expenses (0.1) -1.1%
Contribution after A&P 22.5 39.3% Contribution after A&P 1.3 17.4%
Trading profit 18.9 32.9% Trading profit 1.3 17.1%
H1 2007
(1)
Cost of materials + Production costs + distribution expenses
26
Supplementary
schedule - 4
Trading profit/CAA&P by business area new format (cont’d)
FY 2007
SPIRITS WINES
Previous format New format Previous format New format
€ m % € m % € m % € m %
Net sales 687.1 100.0% Net sales 687.1 100.0% Net sales 151.3 100.0% Net sales 151.3 100.0%
COGS (262.6) -38.2% COGS (85.6) -56.6%
COGS
(1)
(281.2) -40.9%
COGS
(1)
(92.1) -60.8%
Gross margin 424.6 61.8% Gross margin 65.7 43.4%
Gross margin after distribution 405.9 59.1% Gross margin after distribution 59.3 39.2%
Advertising and promotion (136.3) -19.8% Advertising and promotion (136.3) -19.8% Advertising and promotion (28.9) -19.1% Advertising and promotion (28.9) -19.1%
Selling and distribution expenses (69.0) -10.0% Selling and distribution expenses (20.3) -13.4%
Contribution after A&P 269.7 39.2% Contribution after A&P 30.4 20.1%
Trading profit 219.3 31.9% Trading profit 16.6 11.0%
SOFT DRINKS OTHERS
Previous format New format Previous format New format
€ m % € m % € m % € m %
Net sales 102.4 100.0% Net sales 102.4 100.0% Net sales 16.7 100.0% Net sales 16.7 100.0%
COGS (45.5) -44.5% COGS (13.5) -81.0%
COGS
(1)
(54.4) -53.1%
COGS
(1)
(13.7) -82.3%
Gross margin 56.9 55.5% Gross margin 3.2 19.0%
Gross margin after distribution 48.0 46.9% Gross margin after distribution 2.9 17.7%
Advertising and promotion (9.5) -9.3% Advertising and promotion (9.5) -9.3% Advertising and promotion 0.0 0.0% Advertising and promotion 0.0 0.0%
Selling and distribution expenses (15.6) -15.2% Selling and distribution expenses (0.2) -1.3%
Contribution after A&P 38.5 37.6% Contribution after A&P 2.9 17.7%
Trading profit 31.8 31.0% Trading profit 2.9 17.7%
(1)
Cost of materials + Production costs + distribution expenses
27
Supplementary
schedule - 5
Average exchange rates
Q1 2008 Q1 2007 % change
US dollar : 1 Euro
1.500 1.310
Euro : 1 US dollar
0.6667 0.7631 -12.6%
Brazilian Real : 1 Euro
2.602 2.763
Euro : 1 Brazilian Real
0.3843 0.3620 6.2%
28
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