904-116327 boizel gb:904-116327 boizel cor 12-05 - lanson-bcc · bcc has a broad portfolio of...

Contents

Message from the Chairman 2 - 3

Key figures for 2008 4 - 5

Group Houses 6 - 9

Strategy 10 - 11

Stock market 12

BOIZEL CHANOINE CHAMPAGNE (BCC) is a leadingChampagne Group, present at all levels throughoutthe chain of production, from the vineyard throughto sales and marketing, upholding ancestral techniques.

BCC has a broad portfolio of Houses, each present on distribution channels that dovetail effectively withone another for both France and export:

- Champagne Lanson (Reims), the prestigious international brand.

- Champagne Boizel (Epernay), French mail-ordermarket leader, with wines distributed in the traditional sector for international markets.

- Champagne Chanoine Frères (Reims), wines intended primarily for the mass retail market(Chanoine brand), notably with the Tsarine GrandeCuvée range.

- Champagne Philipponnat (Mareuil sur Aÿ), whichowns the prestigious Clos des Goisses, with winesavailable on selective retail markets.

- Champagne De Venoge (Epernay), also sold onselective retail markets, notably with its Louis XVgrande cuvée.

- Champagne Alexandre Bonnet (Les Riceys), ownerof a vast vineyard (wine sold in traditional sectors),as well as the Ferdinand Bonnet brand.

- Maison Burtin (Epernay), a mass retail supplier andowner of the Besserat de Bellefon brand, distributedthrough traditional networks (restaurants, winestores).

In 2008, 19.8 million bottles of Champagne were produced and sold by all the Group's Houses.

Dear Shareholders,

2008 was marked by a particularlydisrupted environment, affectedfrom mid-September by the

sharp decline in the global economicenvironment. Within this context, theBCC Group has weathered the first fallout from the crisis and continued forging ahead with its value strategy, the relevance of which has been confirmed by its sound accounts for2008.

With 300.6 million euros in revenues,down 3.5% at constant exchange rates,our operating margin represented 16.9% of consolidated revenues. Thischange reflects moves to bring the new subsidiaries – Champagne Lanson,Champagne Besserat de Bellefon andMaison Burtin – into line, as well as improvements in the product mix andthe effective management of our costs.

These results highlight the relevance ofour business model: recognized qualityof the wines produced by the differentHouses, creativity of their marketing andactive presence across all distributionchannels. These values, underpinningour development, combined with strongfinancial discipline for the allocation of our resources, the choice of our investments and the recognition of ourassets, will ensure the long-term viabilityof our Group.

In 2008, we neither rashly raised nor slashed the prices for our wines. In 2009,BCC will once again opt for a happymedium: giving priority to our leadingBrands, without neglecting any marketsegment, including the entry-price segment. The good fit between ourHouses allows us to do this.

But for all that, 2009 will clearly not be simple. This unprecedented crisisrequires us to be both realistic and pragmatic. We will keep our composurein a difficult situation. Our teams aredemonstrating their ability to respondeffectively to the environment, puttingtheir talents to work in order to achieveambitious goals.

Looking beyond aspects linked to the economic environment, our actionhas a long-term focus. We have successfully grown, establishing ourBrands in modernity, without losing their tradition for excellence or theiridentity. Working closely with our grapesuppliers, our ambition is founded on the "Champagne legitimacy" of theGroup's managers, who work and live in Champagne and are genuinely driven each day by their passion for itsfine wines.

I would like to thank all of our partnersand our shareholders for their confidence,trust and loyalty.

02 03

Message from the Chairman

“IN 2009, WE ARE CONTINUING TO FORGE AHEAD WITH OURVALUE STRATEGY AROUND BRANDS WITH A STRONG IDENTITY,REASSERTING OUR POSITION AS A GLOBAL CHAMPAGNE PLAYER,COVERING ALL MARKET NICHES. IN THIS STORM, BCC WILL BE AHAVEN OF STABILITY IN CHAMPAGNE”.

Bruno PaillardChairman

MESSAGE FROM THE CHAIRMAN

BOARD OF DIRECTORS

BRUNO PAILLARDChairman and Chief Executive Officer and Director of BCC.Director of Champagne Boizel, ChampagneChanoine Frères, Champagne Philipponnat,Champagne De Venoge, CGV, Charmoy, Maison Burtin.

PHILIPPE BAIJOTDeputy Chief Executive Officer and Director of BCC.Chairman and Chief Executive Officer and Directorof Champagne Chanoine Frères, Maison Burtin.Chairman and Director of Charmoy, CGV,Maison Alexandre Bonnet.Chairman of Champagne Lanson, Abel Lepitre.Director of Champagne Boizel, ChampagnePhilipponnat, Champagne De Venoge.

CHRISTOPHE ROQUES-BOIZELDeputy Chief Executive Officer and Director of BCC.Deputy Chief Executive Officer and Director ofChampagne Boizel, Champagne De Venoge.Chairman of Sodismar Champagne.Director of Champagne Chanoine Frères,Champagne Philipponnat, Charmoy, CGV,Maison Alexandre Bonnet, Maison Burtin.

EVELYNE ROQUES-BOIZELDeputy Chief Executive Officer and Director of BCC.Chairman and Chief Executive Officer and Directorof Champagne Boizel.Director of Champagne Philipponnat,Champagne De Venoge, Maison Burtin.

MICHEL SHAPIRADirector of BCC.Director of Maison Burtin.

MARIE PAILLARDDirector of BCC.Permanent Representative for BCC at ChampagneBoizel, Champagne Chanoine Frères, CGV.

SERGE BONNETDirector of BCC.Director of Maison Alexandre Bonnet.

BENOÎT MERCIER Director of BCC.Director of Maison Burtin.

PIERRE LANSONDirector of BCC.

MANAGEMENT COMMITTEE

BRUNO PAILLARDPHILIPPE BAIJOTEVELYNE ROQUES-BOIZELCHRISTOPHE ROQUESMICHEL SHAPIRANICOLAS ROULLEAUX DUGAGECompany Secretary of BCC.Chief Financial and Operations Officer for Maison BurtinChampagne Lanson.

CHARLES PHILIPPONNATChairman and Chief Executive Officer ofChampagne Philipponnat, Philipponnat les DomainesAssociés, Manager of SCEA Philipponnat.

GILLES MORISSON DE LA BASSETIÈREChairman of Champagne De Venoge.

FRANÇOIS LANGEChief Executive Officer of Maison Alexandre Bonnet,Vignobles Alexandre Bonnet.

FABIEN HENRYChief Executive Officer of Maison Burtin,Manager of C.G.V.

PHILIPPE FEMEL Deputy Chief Executive Officer of ChampagneChanoine Frères.

STANISLAS BONAFÉChief Sales and Marketing Officer of Maison BurtinChampagne Lanson.Chief Executive Officer of Lanson International Diffusion.

PARTIES RESPONSIBLE FOR AUDITING THE ACCOUNTS

PHILIPPE VENET & ASSOCIES SARepresented by Anne VAN ASSEL PLESSY

GRANT THORNTONRepresented by Guy FLOCHLAY

Management and supervisory bodies

CHAIRMAN KEY FIGURES HOUSES STRATEGY STOCK MARKET

21 21.7305.84

322.38

19.8 300.65

2006pro-forma

2007 2008 2006pro-forma

2007 2008

Close to 20 million bottles sold in 2008(million bottles)

Change in business excluding destocking(completed in 2007)(million euros)

2008 REPRESENTS THE SECOND YEAR TO FULLY BENEFIT FROM THE NEW CONFIGURATION

RESULTING FROM THE ACQUISITION OF MAISON BURTIN AND CHAMPAGNE LANSON ON

MARCH 22ND, 2006; EXCLUDING THE BALANCE FOR DESTOCKING AT THE END OF JANUARY

2007, THE FINANCIAL YEARS ARE THEREFORE COMPARABLE FOR 2007 AND 2008.

KEY FIGURES FOR 2008

Good performancesset against the economic backdrop in 2008

Lanson subsidiary performing very well in the UK

Holder of the Royal Warrantsince 1860, ChampagneLanson recorded a good performance in the UK in 2008, despite an unfavorableexchange context. Withvolumes sold up 8%, Lansonhas further strengthened its

leading position on the number one export market for Champagne. Thanks to Lanson, whichexports 75% of its Champagne, the BCC Group isbenefiting from better international visibility.

Significant investments on production in 2008

BCC has finalized a major expansion of itscapacity at the ChanoineFrères site in Reims. With a 30,000 sq.m coveredbuilding that can housearound 30 million bottles,

Chanoine Frères has one of the top performing sites in the Champagne region. At Maison Burtin in Epernay, significant investments have also beenmade in order to modernize the production lines,ensuring the responsiveness required in order to meet the new challenges on mass retail.

04 05

40.18

14.09

51.97

21.3722

122.1

394

445.4

100138.4

435424.8

100111

50.63

20.53

EBITNet income(Group share)

Shareholders'equity

Acquisitiondebt

Book valueof inventories

Net financial debtexcluding acquisition debt

2006pro-forma

2007 2008 2007 2008

122.1

394

445.4

100138.4

435424.8

100111

Shareholders'equity

Acquisitiondebt

Book valueof inventories

Net financial debtexcluding acquisition debt

2007 2008

Strong results(million euros)

Clear and effectively backed financial debt (million euros)


IFRS - in million euros 2008 2007 change 2007 restated *

Revenues 300.65 359.42 -16.3% 322.38

EBIT 50.63 51.98 -2.6% 51.98

% of revenues 16.9% 14.5% 16.1%

Pre-tax earnings 31.75 32.44 -2.1% 32.44

% of revenues 10.6% 9.0% 10.1%

Net income (Group share) 20.53 21.37 -3.9% 21.37

% of revenues 6.8% 6.0% 6.6%

Condensed income statement

* Excluding the 37 million euros resulting from the balance on the destocking program launched in line with moves to restructure the debt of the Maison Burtin – Champagne Lanson subsidiaries acquired at the beginning of 2006.

LansonReims

BoizelÉpernay

Chanoine FrèresReims

PhilipponnatMareuil sur Aÿ

De VenogeÉpernay

Alexandre BonnetLes Riceys

BurtinÉpernay

06 07

GROUP HOUSES

BOIZEL CHANOINE CHAMPAGNE HAS A BROAD PORTFOLIO OF HOUSES, EACH PRESENT ON

DISTRIBUTION CHANNELS THAT DOVETAIL EFFECTIVELY WITH ONE ANOTHER ON BOTH FRENCH

AND EXPORT MARKETS.

Champagne Housesdrawing on their rich histories

BCC’s roots are firmly anchored in the beautifulChampagne region. Each one of the Housesmaking up the Group has a history dating back

more than a hundred years. They have been createdand have grown through the commitment of the menand women who have successfully developed them,despite historical contingencies.

They proclaim their roots and their unique blends. In essence, they dovetail effectively with one another, each positioned on different distributionchannels. They have joined together and united, while maintaining their own identities and the familyspirit that has underpinned their development.

Vineyard AOCSource : carte CIVC

CHAMPAGNE LANSON in Reims


HOUSE FOUNDED IN 1760

HISTORY I The Champagne House LANSONadopted the Maltese cross as its emblemwhen Nicolas Louis Delamotte, the founder's son and a Knight of the Order ofMalta, took the helm in 1798. In 1828, hejoined forces with Jean-Baptiste Lanson,the first of the name. From the outset, theHouse has shipped its wines outside ofFrance: to Germany, to the Netherlandsand, of course, to England, where HerMajesty Queen Victoria awarded it her firstcertificate as an Official Supplier for theCourt of England in 1860, a title that it stillholds today.

THE LANSON WORLD I The quintessence of the LANSON style, the Noble Cuvéeembodies the House's excellence. Inalmost 20 years, only seven vintages havebeen selected for the Noble Cuvée Brut, a Champagne with pure lines and aremarkably full mouth. Champagne LANSON is the partner for numerousevents. In 2008, it graced the French GolfOpen, the main polo tournaments inGermany, the Deauville Jumping show, theMonaco Yacht Show and the Wimbledonand Monte Carlo tennis tournaments. It was also present during popular tourna-ments such as the Six Nations, the 24 HoursLe Mans and the Tour de France Auto.

CHANNELS I LANSON has an excellentlevel of brand awareness, present on the five continents, with strong positions,notably in the UK. It is distributed across allchannels – wine stores, gourmet foodstores, restaurants, bars, hotels, supermar-kets – in France and abroad.

In 2009 I Champagne LANSON is consoli-dating its repositioning around a new specific, attractive and prestigious brandimage, centered around the Lanson cross.Moves to revitalize the image are beingaccompanied by new labels across theentire LANSON range, as well as new cases and gift boxes that are better suitedto the status of a prestigious internationalbrand. Recognized worldwide for the quality of its wines and its unique style,Champagne LANSON’s back label nowshows the disgorging date, guaranteeingtransparency and its high level of expertise.

www.lanson.fr


The first PHILIPPONNAT appeared in 1522 in Aÿ, at the heart of the Champagneregion. From the Brut Royale Réserve, agenuine ambassador for the House, to theprestigious Cuvée du Clos des Goisses vintage, its wines are full-bodied, structured, with blends dominated byPinots Noirs, created to be enjoyed bylovers of fine wines. Upscale wines reserved for fine restaurants, wine stores,gourmet food stores and enthusiasts. ItsPHILIPPONNAT-Les Domaines Associés subsidiary distributes Domaines Barons deRothschild (Lafite) wines in France.

In 2009 I PHILIPPONNAT is maintaining itscommitment to producing and selling upscale wines for export and traditionalchannels. 2009 will see the launch of thefirst Royale Réserve (brut non millésimé) inspecial bottles, crowning and symbolizingthe House’s qualitative renewal.

www.champagnephilipponnat.com

08 09

GROUP HOUSES


Founded under the reign of Louis XV, CHANOINE FRERES was the first House tobe authorized by the city of Epernay to diga cellar in Champagne. The second oldestChampagne House, at the dawn of the21th century, it represents an outstandingBrand combining modernity and quality.CHANOINE FRERES Champagnes are primarily present in all leading retail stores, with the classic CHANOINE FRERESrange and the prestigious TSARINE range.

In 2009 I Following the successful integration of the Chanoine sales teaminto L.I.D, this rational organization is paving the way for the further development of the Chanoine and Tsarine brands on mass retail markets. The Tsarine brand is also developing its business for export, as well as with its traditional client base, and the "night" sector.

www.champagnechanoine.com


«One Family, one House, one Tradition»: for 175 years, the BOIZEL Family has dedicated itself with passion to creatingexceptional wines. Distributed in the UK as early as the 19th century, BOIZELChampagne has built up a wonderfulreputation in Great Britain, with its presence gracing the season's elegantevents.The French mail-order market leader,Champagne BOIZEL is distributed throughtraditional channels on international markets.

In 2009 I The House is celebrating its 175th

anniversary with a magnificent new vintage in the Joyau de France collection:the 1996. This celebration will represent anopportunity to highlight the passion andhigh standards that have underpinned the elaboration of great Champagnes forfive generations.

www.boizel.com

CHAMPAGNE BOIZEL in Epernay

CHAMPAGNE CHANOINE FRÈRES in Reims

CHAMPAGNE PHILIPPONNAT in Mareuil-sur-Aÿ


ALEXANDRE BONNET offers a magnificentrange of Champagnes, primarily forexport, but also for retail clients in France. In Les Riceys, at the heart of the Champagne region's largest plot,ALEXANDRE BONNET, with its magnificentvineyard, provides the Group's variousHouses with a major source of grape supplies.

In 2009 I Alexandre Bonnet will continuedeveloping its House on exports. Alongsidethis, the Champagne range is being further strengthened with the release of a new “EXTRA BRUT“ cuvée in Rosé andNoir. A pure product of Les Riceys, this new cuvée has been created specifically to satisfy the tastes of demanding enthusiasts.

www.alexandrebonnet.com


DE VENOGE cultivates a policy of qualityand innovation in the purest Champagnetradition. Recommended by numerousprestigious institutions, DE VENOGE represents one of the most decoratedChampagnes of its generation.Both in France and abroad, DE VENOGEhas built up a network of excellent professionals from the traditional sector. DE VENOGE is strengthening its interna-tional development, with DE VENOGEChampagnes now found in numerouscountries.

In 2009 I DE VENOGE is continuing to move ahead with its development on upscale wines, driven by a new Louis XVRosé Extra brut 2002 vintage. To consolidate its positions in a slower market, DE VENOGE is focusing its actionsin the field.

www.champagnedevenoge.com



In 1843, Edmond Besserat, from Hautvillers,founded the BESSERAT House in Aÿ. Then, in1927, his grandson Edmond married Yvonnede Meric de Bellefon. In the 1930s, the Housedeveloped a Champagne to ideally accom-pany an entire meal, with a light sparkleand fine mousse: the Crémant des Moines.This wine, which has been renamed Cuvéedes Moines, is now the jewel in the House'scrown. With a very strong presence in hotelsand fine restaurants in France, BESSERAT deBELLEFON is also available through wineand gourmet food stores, as well as in thetraditional sector on international markets.

En 2009 I Focused purely on the traditionalchannel, Champagne BESSERAT DE BELLEFON is forging ahead with its repositioning. To further strengthen the levelof brand awareness, marketing actions willbe ramped up with a communications campaign in more general public media.Since the start of the year, the Cuvée desMoines range has been enhanced with atête de cuvée 2002 vintage.

www.besseratdebellefon.com

CHAMPAGNE DE VENOGE in Epernay

CHAMPAGNE ALEXANDRE BONNET in Les Riceys

CHAMPAGNE BESSERAT DE BELLEFON in Epernay

10 11

LA STRATÉGIE

One core business: the production andmarketing of ChampagneFrom the outset, the BOIZEL CHANOINECHAMPAGNE Group has had only one core business: the elaboration and sales of Champagne wines, with a constant focus on quality in order to develop outstanding wines.

Quality sourcingTo produce its bottles, the Group primarily buys grapes at harvest timefrom independent winegrowers, fromthe different vineyards required to produce quality cuvées. Historically, the Group's Houses have ensured thesustainability of their grape suppliesthrough multi-year contracts, in thesame way as all Champagne Houses.Over generations, they have built upclose ties with the winegrowers.

Since the Group's main shareholders are strongly involved in local life andmany winegrowers are also shareholdersin BCC, the Houses enjoy close ties that are favorable for the renewal ofexisting agreements and the conclusionof new contracts.

Houses with a strong identity operatingon distribution channels that dovetailwith one anotherEach one of the Houses is specialized in its market. They are not competingagainst one another, since they coverdifferent price segments or distributionchannels.

Lanson is a leading international brand,with a stronger cross-sector and export

focus than the Group's other brands. It issold across all channels (restaurants,wine stores, supermarkets, duty free).

Boizel has a leading position on theFrench mail order market for Champagne.Chanoine Frères is distributed primarilythrough supermarkets. Philipponnat supplies leading restaurants. Besserat de Bellefon and De Venoge are alsosold through restaurants and winestores. Alexandre Bonnet representsmore of a local brand.

Present on all distribution channels, BCC is a global Champagne playercovering all market niches, from luxury to low cost. This presence on diversifiedmarkets is consolidating the Group's resilience faced with changes anddeve lopments in the economic environment.

Upgrading the Group's HousesBCC's primary objective is to continuestrengthening its operational perfor-mance and profitability on a lastingbasis. This ambition is based on conti-nuing with the qualitative upgrading ofthe Group's various brands, with a growing focus on the luxury sector andeffectively targeted communicationscampaigns. While not neglecting thenational market, the Group's sales effortswill continue to focus primarily onexports, aiming over the medium term to reverse the breakdown of France-Export sales.

Ambitious marketingChampagne is an outstanding product.Quality represents a natural requirementat all stages, from the elaboration of the wines through to their presence onthe market. As a key factor underpinning

A balanceddevelopment strategy

IN A FUNDAMENTALLY BUOYANT CHAMPAGNE MARKET, THE PRIMARY OBJECTIVE IS TO ACHIEVE LASTING IMPROVEMENTS IN VALUE ADDED.


the upgrading strategy, the image of the Houses represents an asset that mustbe constantly renewed and enhanced.Each House regularly carries out promotional and advertising actions, combined with carefully targeted eventsand corporate communication actions, in order to express its authenticity andidentity. The significant investments madeon marketing and communication,

particularly for Besserat, Chanoine andC h a m p a g n e L a n s o n , a r e b e i n g accompanied by ongoing moves to further strengthen the efficiency and effectiveness of the distribution channels,such as the joint L.I.D. network, which distributes the Lanson, Besserat de Bellefon, Tsarine and Chanoine Frèresbrands.

Constant creativity

With innovative packaging for the newcuvées, each House is asserting its talent,identity and vitality. In the same way, eachvintage reflects an exceptional year andthe style of each House. In 2008, variouscuvées de prestige and new vintageswere created, such as the Brut Ultime(Boizel), Non Dosé Royale Réserve(Philipponnat), Cuvée Louis XV Rosé ExtraBrut 2002 (De Venoge) and Cuvée desMoines 2002 (Besserat de Bellefon).

Development of Besserat de Bellefon’sbrand awareness

Symbolizing the renewal of the Besserat deBellefon brand, the new label, launched inMay 2009, is once again giving “Besserat”all the visibility that the House deserves. Acommunications campaign is graduallybeing rolled out and ramped up. By establishing its presence exclusively onselective retail, Besserat de Bellefon isbeing restored to its nobility, with a remar-kable legitimacy in fine restaurants andhotels in France.

12

STOCK MARKET

24.80%SAS Bruno Paillard

19.22% Bruno Paillard Family

22.17%Philippe Baijot Family

15.77%Public

18.04%Roques-Boizel Family

Change in the share price since IPO

Share characteristics

Shareholding structure

In connection with the acquisition of Champagne Lanson and Maison Burtin, a 22.7 million euro convertiblebond issue was subscribed for by the Caisse d'Epargne Group. At the end of 2009, the redemption of these bonds into shares will enable the Caisse d'Epargne Group to hold just about a 9% stake in BOIZEL CHANOINE CHAMPAGNE.

Shareholder RelationsBOIZEL CHANOINE CHAMPAGNE

Allée du Vignoble - 51100 Reims - Francee-mail : [email protected] - www.boizelchanoine.fr

Stock market

BOIZEL CHANOINE CHAMPAGNE IS COMMITTED TO PROVIDING ITS SHAREHOLDERS WITH

SUSTAINABLE PROFITABILITY AND A SATISFACTORY RETURN ON INVESTMENT, SUPPORTED BY CLEAR

AND TRANSPARENT FINANCIAL COMMUNICATIONS.

Listing market Nyse-Euronext Paris Eurolist Compartiment B

Code FR0004027068 - BOZ

Number of shares 4 591 672

Dividend for 2008 0.35 euro

Share price:

High 2008 117.65 euros

Low 2008 30 euros

At the IPO 7.20 euros (at December 4th, 1996)

Market capitalization 173 million euros based on the share price at May 25th, 2009 (37.68 euros)

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BOIZEL CHANOINE CHAMPAGNEAllée du Vignoble 51100 Reims - FranceTel. : 03 26 78 50 00 - Fax : 03 26 78 53 88www.boizelchanoine.com

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