Forward Looking Statements

This presentation contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Statements which are not historical facts and relate to future plans, events or performance are forward-looking statements that are based on management’s current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including but not limited to future global economic conditions, market conditions, foreign exchange rates, the actions of competitors, consumer preferences and operating and financial risks related to managing growth and integrating acquired businesses.  Many of these factors are beyond the control of the Company.  More detailed information regarding risk factors is included in Company filings with the U.S. Securities and Exchange Commission.

 

 

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BRL Hardy

 

 

 

 

 

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Strategic Attributes

•           Consistent with our growth strategy

•           Improves long term growth trends

•           Increases product depth and geographic reach

•           Enhances scale, industry strength and competitiveness

 

•           Meets acquisition guidelines

•           Growing category

•           New platform

•           Critical mass market

•           Superior talent

•           Improves long-term share holder value

 

 

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Improves Long Term Growth Trends

•               Enhances revenue growth potential in U.K, Europe and other strategic international markets

•               100% of Pacific Wine Partners - a dynamic growing U.S. business

•               Ongoing investments in fast growing Imported Beer and U.K. Wholesale businesses assures their role as organic growth drivers

•               Ability to capture growth at a faster rate in new world markets

 

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Increases Product Breadth and Geographic Reach

•               Offers consumers more choices by adding fast-growing New World wines to Constellation’s already broad portfolio of wines, beers and spirits

•               Australian wines are the fastest growing wine category in key beverage alcohol markets, and BRL Hardy’s brands are among the best performing worldwide

•               Constellation’s non-U.S. sales will increase from 30% to 40% of its total

 

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Improves Scale, Industry Strength and Competitiveness

•               Creates the world’s largest wine company, with approximately US$1.7 billion in total wine sales

•               Emerges as the wine category leader in the U.K. and holds leading wine positions in critical markets:

Wine:

#1  Australia (24% share)

#1  U.K. (10% share)

#2  U.S. (20% share)

#2  New Zealand (14% share)

 

Beer, Spirits & Other:

#1 U.K. independent drinks wholesaler

#2 U.S. imported beer

#2 U.K. cider

#3 U.S Spirits

 

 

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Growth in Critical Markets

 

 

 

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New World Wine Export Market

Excluding wine sales in the U.S. and the U.K.

 

 

Source:  IWSR and Company estimates

 

 

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New World Wine Import Market

 

Country		Total Import Share%		3 Year CAGR%		New World Share%		3 Year CAGR%
Canada		71		7.4		30		22.0
Germany		52		0.4		4		27.1
Denmark		100		3.3		17		16.2
Sweden		100		6.6		19		10.0
Ireland		100		11.8		23		22.9
Netherlands		100		1.3		61		27.0
Switzerland		61		0.2		20		87.5
Japan		59		—8.5		9		—4.5

 

Source: IWSR and Company estimates

 

 

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Purchase Price

(In millions except per share data)

 

* Assumes exchange rate is A$1.00 to U.S. $ 0.58 and excludes transaction costs

 

 

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BRL Hardy EBITDA/Valuation

(In millions of US$)

 

 

 

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Financing Proposal

(In millions of US$)

 

 

 

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Expected Balance Sheet Effects

 

* Excludes $294 undrawn of $400 revolver and transaction costs

 

 

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