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Private & Confidential

Sohn Canada Capitalize for Kids Conference


October 2014
2 Private & Confidential
Disclaimer
The analyses and conclusions of Alignvest Capital Management Inc. ("ACMI ") contained in this presentation are based on
publicly available information. ACMI recognizes that there may be confidential information in the possession of the companies
discussed in this presentation that could lead these companies to disagree with ACMIs conclusions. This presentation and the
information contained herein is not investment advice or a recommendation or solicitation to buy or sell any securities. All
investments involve risk, including the loss of principal.

The analyses provided may include certain statements, estimates and projections prepared with respect to, among other
things, the historical and anticipated operating performance of the companies discussed in this presentation, access to capital
markets, market conditions and the values of assets and liabilities. Such statements, estimates, and projections reflect various
assumptions by ACMI concerning anticipated results that are inherently subject to significant economic, competitive, and other
uncertainties and contingencies and have been included solely for illustrative purposes. No representations, express or
implied, are made as to the accuracy or completeness of such statements, estimates or projections or with respect to any
other materials herein and ACMI disclaims any liability with respect thereto. Actual results may vary materially from the
estimates and projected results contained herein.

Funds managed by ACMI are invested in Corby Spirit and Wine Limited (Corby) common stock. ACMI manages funds that
are in the business of trading buying and selling securities and financial instruments. It is possible that there will be
developments in the future that cause ACMI to change its position regarding Corby. ACMI may buy, sell, cover or otherwise
change the form of its investment in Corby for any reason. ACMI hereby disclaims any duty to provide any updates or
changes to the analyses contained here including, without limitation, the manner or type of any ACMI investment.
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Alignvest Capital - Overview
North American equity long/short manager
Subsidiary of Alignvest Management Corporation (AMC) a global alternative asset management firm whose managing
partners, Reza Satchu, a serial entrepreneur, and Tim Hodgson, the former CEO of Goldman Sachs Canada, have
extensive experience building world class organizations
ACMI was founded in 2012; funds launched in 2013
$100mm in AUM; eight professionals (excluding a deep bench of additional support staff at AMC)
Prior to Alignvest, Reno Giancola and Jeff Hales (the co-PMs) worked together for eight years at Gluskin Sheff +
Associates, a $7.5 billion asset management firm at the time of their departure they were responsible for over $1 billion
of capital in similar strategies and were among the largest short sellers of individual securities in Canada
In addition to the core equity long/short strategy, the funds selectively pursue constructive activism, event driven, credit
and/or capital structure arbitrage opportunities
Focus and Expertise in Canada
For an investor, Canada offers similar positive attributes as the United States, with significant incremental advantages:
The business environment is generally less competitive, allowing for more durable competitive advantages,
persistently higher returns on capital and greater financial stability
Capital is highly concentrated among large institutions, whose size limits their investment universe this leaves many
great mid-size companies with limited institutional following and little/no research coverage
Low number of active short sellers
True Alignment
PMs have invested substantially all of their liquid net worth in the funds paying the same fees, with long lock-ups
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Corby Spirit and Wine (CSW/A-T, CSW/B-T) Overview
Corby is Canadas leading marketer of spirits and importer of wines, representing six of the 25 top-
selling spirit brands (and 20% of the volumes) in Canada
Approximately 85% of Corbys revenue is derived from its proprietary brands, with the balance being
commissions on agency sales of third-party brands and other ancillary revenues
Corbys whisky brand (Wisers) is the #1 player in Canada with ~20% market share
48% owned by Pernod Ricard, the second largest spirits company in the world


















Market Capitalization $572mm
Net Cash $108mm
Enterprise Value $464mm
Dividend Yield 3.5%
Institutional Ownership ~20%
F2014 EBITDA $40.5mm
F2014 Free Cash Flow $29.2mm
F2014 ROIC 23.9%
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Corby Spirit and Wine Brand Portfolio
Agency Brands Owned Brands
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Corby Spirit and Wine Historical Financials
For year ending June 30
($mm's except where noted)
2011 2012 2013 2014
Case Goods 118.4 110.9 109.7 116.4
Other 41.2 35.9 23.0 20.9
Total Revenue 159.6 146.7 132.7 137.3
% growth -8.0% -9.6% 3.5%
Gross Profit 89.0 85.9 83.1 88.3
% margin 55.8% 58.5% 62.6% 64.3%
EBITDA 48.4 43.1 42.1 40.5
% margin 30.3% 29.4% 31.7% 29.5%
Net Income from Cont. Ops. 28.6 28.4 26.9 25.0
% margin 17.9% 19.3% 20.3% 18.2%
Fully Diluted EPS 1.00 0.92 0.94 0.88
% growth -8.3% 2.6% -7.1%
Total dividends per share 0.56 2.44 1.20 0.71 Cumulative dividends = 24% of current share price
Free Cash Flow 33.1 44.6 31.0 29.2 Cumulative FCF = 30% of current EV
Return on Invested Capital 20.1% 21.9% 25.5% 23.9%
2011: divested Seagram's cooler business
and non-core spirits brands
2012: curtailed bulk whisky sales
Source: Company financials.
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Why is Corby an attractive investment?
Canadian spirits franchise is a great business
high barriers to entry, stable revenues, high margins, excellent returns on capital, strong free cash flow
generation
Perfectly positioned to capitalize on the North American Whisky Renaissance
After decades of ceding share to white spirits, brown spirits appear poised to enjoy a long period of above-
average growth
Within the whisky segment, the bulk of growth is coming from high-end and flavoured whiskies where
Corby has a diverse roster of internationally-recognized, award-winning brands
Huge upside optionality in the U.S. that is completely underappreciated by the market
Recently joined forces with Pernod Ricard to launch the J.P. Wisers brand in the U.S. a market that is 4x
the size of the Canadian market and growing faster
Even moderate success could double the size of the company
Potential M&A target
Pernod already owns 48% of Corby
The U.S. brown spirits market is a big hole in their portfolio and they have a history of acquiring control of
their key brands
Balance sheet optionality
Corby is significantly underlevered using only the cash on their balance sheet the company could fund a
sizable (~20%) special dividend or dutch tender offer


















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Whisky once held the dominant position in the U.S. spirits market, but its market share underwent a long
and painful decline from roughly 65% of total spirits volumes in 1970 to 25% in the early 2000s

That trend appears to have reversed and whisky has been growing at well above market rates in recent
years











The North American whisky renaissance
The Dark Ages Whisky 2.0?
0
20
40
60
80
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120
1970 1975 1980 1985 1990 1995 2000
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Non-Whisky Whisky
0%
1%
2%
3%
4%
5%
6%
7%
2000-2005
CAGR
2005-2010
CAGR
2011 2012 2013
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Overall Spirits Whisky
Fastest growth
since the 1960s
Source: Distilled Spirits Council of the United States
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Whisky is handily outperforming overall spirits growth
53%
27%
12%
6%
2%
Share of Spirits Value Growth (2013/2012)
NAW Vodka Scotch Irish Whisky Other
NAW = North American Whisky
Source: Diageo, 2013 Investor Conference , 52 weeks ending Oct 12. 2013
30%
23%
12%
9%
7%
5%
14%
Share of U.S. Spirits Market (2013, by value)
Vodka NAW Rum Cordials
Tequila Scotch Other
North American Whisky represents less than a quarter of the U.S. spirits market but was
responsible for over half of the industrys sales growth in 2013
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Canadian whisky is the driving force behind this growth
Source: Nielsen Scantrack enhanced AOC. For the 52 weeks ended September 13, 2014
(2.4%) (2.4%)
+7.6%
+11.4%
+12.4%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
Brandy /
Cognac
Domestic
Blend
Whiskey
Bourbon Canadian
Whisky
Irish Whiskey
V
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Almost all of the growth in Canadian whisky is at the high end
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
2010 2011 2012 2013
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Value
Premium
Super Premium /
Ultra Premium
Source: Distilled Spirits Council of the United States
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Flavoured whiskies are also taking off
Source: Diageo, 2013 Investor Conference , 52 weeks ending Oct 12. 2013
53%
47%
% of Value Growth
Flavoured Non-Flavoured
Flavoured whiskies are only 10% of the U.S. whisky market today, but are
growing at 8-10x the rate of overall sales
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What is driving these trends?
Pop Culture
Hollywood provided the initial spark for the whisky renaissance programs like Mad Men and Boardwalk Empire are doing
for brown spirits what Sex and the City did for vodka-based cocktails (cosmopolitans, martinis, etc.) last decade
Favourable Demographics
Whisky still under-indexes among women and multiculturals
It is the fastest-growing spirit among females and Hispanics
Premiumization
Consistent with the trend of consumers seeking affordable luxury and accessible premium products
People are increasingly willing to pay a higher price for something they view as legitimately unique
Product Innovation (Flavoured Whiskies)
Reinvigorating traditional whisky drinkers with new choices but also introducing the spirit to a whole new group of
consumers who previously did not drink it (particularly women and multiculturals)
One in five people trying flavoured whisky are new to the spirit

Changing Consumer Tastes & Preferences
People are drinking less, but drinking better
Consumers have a growing preference for spirits with a sense of authenticity and an interesting story to tell of heritage
and quality craftsmanship
Renewed interest in classic / retro cocktails which are predominantly based on brown-spirits (Manhattans, Old
Fashioneds, etc.)

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Corby is well positioned to capitalize given its brand portfolio
Bronze Medal - Canadian Whisky Awards (2014)
Category Products
Awards
Premium
Super Premium
Canadian Whisky of the Year - Canadian Whisky Awards (2014)
Best Canadian Whisky - San Francisco World Spirits Competition (2013)
Canadian Whisky of the Year - Whisky Advocate (2013)
Gold Medal (90 points) - Beverage Testing Institute's International Review of Spirits Competition (2013)
World's Best Canadian Whisky - Whisky Magazine World Whiskies Awards (2014)
Gold Medal (93 points) - Beverage Testing Institute's International Review of Spirits Competition (2013)
Finalist (92 points) - Ultimate Spirits Challenge (2013)
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Corby is well positioned to capitalize given its brand portfolio
Best Canadian Whisky, Double Gold Medal - San Francisco World Spirits Competition (2014)
Best Canadian Blended Whisky (13-20 years) - Whisky Magazine World Whiskies Awards (2014)
Gold Medal (90 points) - Beverage Testing Institute's International Review of Spirits Competition (2013)
Finalist (91 points) - Ultimate Spirits Challenge (2013)
Ultra Premium
Canadian Whisky of the Year - Whisky Advocate (2014)
Gold Medal - Canadian Whisky Awards (2014)
Gold Medal (93 points) - Beverage Testing Institute's International Review of Spirits Competition (2013)
Silver Medal - San Francisco World Spirits Competition (2014)
Gold Medal - San Francisco World Spirits Competition (2014)
Gold Medal - Canadian Whisky Awards (2014)
Flavoured
Flavoured Whisky of the Year - Canadian Whisky Awards (2014)
Silver Medal - San Francisco World Spirits Competition (2014)
Category Products
Awards
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The U.S. whisky market is 4x the size of the Canadian market and growing significantly faster, particularly in the premium
and flavoured categories
Corby recognized this opportunity early and has worked aggressively to capitalize on it:
In July 2012, the company signed an agreement with Pernod Ricard USA to represent Corby brands in the U.S.
They set out to build a portfolio of products tailored to American consumers tweaking existing brands and
developing new ones within a twelve month time period
In September 2013, the company launched J.P. Wisers Rye, J.P. Wisers Spiced, J.P. Wiser's Deluxe and J.P.
Wiser's 18 Year Old in 16 U.S. markets and introduced Lot 40 and Pike Creek at select on-premise accounts
Corby has made significant investments in advertising and promotion, including becoming the official spirits
sponsor of the 2014-15 ESPN Fantasy Football Season

Entering the U.S. A transformational opportunity
The combination of Corbys product positioning and Pernod Ricards
distribution muscle should allow J.P. Wisers to make significant inroads in
the U.S. market in a relatively short time frame
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Volume Sold
(9L cases, 000s)
EPS Impact
(1)
EPS Accretion
(1)
100 $0.05 5.7%
200 $0.18 20.2%
300 $0.30 34.6%
400 $0.43 49.1%
500 $0.56 63.6%
600 $0.68 78.0%
700 $0.81 92.5%



















The size of the prize
Top Canadian Whiskies Sold in the U.S.
(2)

Crown Royal 4.3mm (Diageo)
Black Velvet 2.0mm (Constellation Brands)
Canadian Mist 1.5mm (Brown-Forman)
Canadian Club 1.2mm (Beam)
Windsor Supreme 0.9mm (Beam)




Wisers out sells all of these
brands in Canada!
Even modest success in the U.S. market would yield significant earnings growth
Only 2.5% of the overall U.S. whisky market
(1) Based on Alignvest Capital internal assumptions
(2) Source: Impact Databank
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J.P. Wiser's is prominently featured across all Pernod media: website, investor documents, marketing materials, etc.
From the press release announcing the U.S. launch of J.P. Wiser's:
There is no brand better positioned to capitalize on this phenomenal growth [in the U.S. whisky market] than J.P.
Wiser's North American Whisky
From the most recent earnings call:
this is why you see us developing Wisers and other North American Whiskies such a Pike Creek, Lot 40, etc.
solid growth for our key brands in the U.S., with the likes of Wisers and Olmeca
Innovation over the last year in the U.S. represented roughly 50% of our growth with the likes of J.P. Wisers Rye









The success of J.P. Wisers is clearly important to Pernod
23%
23%
21%
12%
6%
5%
10%
Market Share of the NAW Category
Diageo
Brown-Forman
Beam/Suntory
Sazerac
Heaven Hill
Constellation
Other
The whisky renaissance is a potential watershed moment for the
spirits industry and Pernod Ricard is at risk of missing out
80% of their revenue comes from white spirits, where
global sales fell in all price categories in 2013
Despite the success of Jameson, they are not even a top
six player in the U.S. whisky market
The lucrative Chinese ultra-premium spirits market is
suffering dramatically as a result of the crackdown on
personal spending and gifting by officials China is the
2
nd
largest market for them behind the U.S.

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Craft whisky company started by Tom Bulleit who quit his successful law practice to revive his great-great-grandfathers
bourbon recipe acquired by Diageo in 2001
Sales have increased five-fold in the past three years
Bulleits share of the rye market has gone from 10% to 33% in just two years
Diageo has publicly stated that they believe this will be a million-case brand for them in the near future













Case Study 1: Bulleit (Diageo)
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Jameson was acquired by Pernod Ricard in 1988 has since grown to become the #1 Irish Whisky brand in the world
with a 68% market share
24 consecutive years of growth, from 500K cases/year globally to 5 million
2013 sales volumes up 10% (17% by value)
Jameson has had disproportionate success in the United States a testament to the distribution/marketing strength of
Pernod Ricard USA













Case Study 2: Jameson (Pernod Ricard USA)
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They already own 48% of the company (52% of the voting shares)
It fits the strategy based on recent actions and public statements:
July 2014: Pernod increases its stake in Avin tequila from 20% to 84%
April 2014: Pernod acquires Kenwood Vineyards:
We are open to tactical acquisitionsWe are looking at other potential assets but we are not open
to large transformative deals. Gilles Bogaert, Pernod Ricard CFO
June 2012: Pernod acquires the remaining 30% interest in its Pernod Ricard Korea Imperial joint venture
The acquisition is in line with Pernod Ricards business model to have full ownership, where
relevant, of our brands and distribution networks. Pierre Coppere, Pernod Ricard Chairman & CEO
If Wisers is deemed a commercial success in the U.S., Pernod would be better off buying out the minority
shareholders (in large part using Corbys existing cash and debt capacity) and keeping 100% of the upside for
themselves
Even at a substantial premium to the current share price, the deal would be very attractive
(1)




Pernod is the natural acquirer of Corby
(1) Based on Alignvest Capital assumptions.
Price Paid $25.00 $27.50 $30.00 $32.50 $35.00
% Premium 28.1% 41.0% 53.8% 66.6% 79.4%
EBITDA Multiple 13.6x 15.2x 16.8x 18.4x 20.0x
IRR to Pernod 39.2% 31.4% 26.0% 21.8% 18.5%
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Historical Spirits M&A Transactions
(1) Source: Bloomberg.
Year Acquirer Target Enterprise Value ($mm) EV/LTM EBITDA
2014 Suntory Holdings Beam 15,888 20.1x
2013 Campari Forty Creek 186 14.5x
2012 Beam Pinnacle Vodka 605 20.9x
2012 Diageo United Spirits 956 17.7x
2011 Asahi Independent Liquor 1,300 14.0x
2011 Gruppo Campari Sagatiba 26 13.0x
2011 Diageo Mey Icki 2,100 9.9x
2009 Campari Wild Turkey 575 12.0x
2009 United Spirits Ltd. Shaw Wallace 71 30.6x
2008 Pernod Ricard Vin & Spirit (Absolut) 8,894 23.5x
2005 Pernod/FO Allied Domecq 17,795 13.3x
2005 LVMH Glenmorangie 604 23.3x
2004 Bacardi Grey Goose 2,235 25.0x
2004 Diageo The Chalone Wine Group 255 17.8x
Average 18.3x
Median 17.8x
Historical Trailing Multiples for Spirits Transactions Over the Last Decade
(1)
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Corby trades at a significant discount to spirits peers
If Corby traded at the peer group average forward EBITDA multiple one
year from now, it would imply a $31 share price (56% upside)
Spirits Industry Comps
($ in millions) EV/EBITDA
Market Cap Net Debt EV LTM 2014 2015
Diageo
44,593 15,673 60,266 15.0x 14.0x 13.1x
Pernod Ricard
23,466 12,289 35,755 14.1x 13.9x 12.8x
Brown Forman
18,692 622 19,314 18.5x 18.1x 16.7x
Davide Campari
3,212 1,257 4,468 14.5x 12.2x 10.9x
Remy Cointreau
2,728 629 3,356 19.3x 17.7x 15.6x
Castle Brands
273 13 286 NMF NMF NMF
Average 15,494 5,080 20,574
16.3x 15.2x 13.8x
Corby Spirit and Wine
572
(108) 464
11.4x 11.0x 9.5x
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U.S. investors appear to have caught on to this secular
story, but Canadian investors are none the Wiser
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ROX-N (+128%)
BF/B-N (+32%)
BEAM-N (+27%)
CSW/A-T (-1%)
Which of these looks out of place?
25 Private & Confidential
Are we missing something here?
Corby Castle Brands
Market Cap $572mm $273mm
Net Debt (Cash) ($108)mm $13mm
Enterprise Value $464mm $286mm
C2014E EBITDA
(1)
$42.2 mm $538k
C2015E EBITDA
(1)
$48.5 mm $1.0mm
C2014E FCF
(1)
$31.5mm ($6.1mm)
C2015E FCF
(1)
$38.0mm ($4.5mm)
Core Whisky Brand J.P. Wisers Jeffersons
LTM Global Volume 861k 32k
LTM U.S. Volume 72k (estimated) <32k
U.S. Distributor(s) Pernod Ricard Network of independent
distributors
Sources: Bloomberg, company filings.
(1) Corby data based on Alignvest Capital estimates. Castle Brands data based on analyst estimates.
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Corby is a great business that we would be happy to own as a standalone entity given its stable revenues, high margins,
low capital requirements, strong free cash flow generation and high barriers to entry
The North American Whisky renaissance is a real and potentially transformative opportunity for the company that is being
essentially ignored by the market given its status as a Canadian mid-cap company with a relatively small float, limited
institutional following, and effectively no research coverage.
As we see it, the range of logical outcomes is bounded by two extremes:
1. The N.A. whisky renaissance continues and Wisers is successfully able to penetrate the U.S. market
Advertising expenditures grow modestly, revenue growth accelerates dramatically, free cash flow explodes
We believe the company could be worth more than double the current share price in 3 years (with
optionality on an acceleration of the return via a Pernod takeout in the interim)
2. The U.S. launch of J.P. Wiser's is a complete failure
Revenue growth reverts to slightly above the Canadian spirits market, SG&A drops significantly as a result
of lower advertising and promotion expense; perhaps there is modest multiple compression (the long-term
average EBITDA multiple is ~10x)
We see limited downside (less than 10%)





Summary
Heads we win, tails we dont lose
27 Private & Confidential
Please drink responsibly

(and if you do, please choose Wisers!)

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