Foley Wines Ltd. · NZX:FWL
Foley Wines — Shareholder Meeting (November 2019)
30 slides from Foley Wines's shareholder meeting presentation, Nov 21, 2019
Slide 1: Annual Shareholders Meeting 2019
Annual Shareholders Meeting 2 0 1 9 1
Slide 2: Agenda
FOLEY WINES ASM 2019 Agenda Introduction Formalities CEO’s presentation Shareholder questions Resolutions Conduct of voting General business Meeting close 2
Slide 3: Introductions
FOLEY WINES ASM 2019 Introductions Paul Brock – Deputy Chairman Mark Turnbull – Director and CEO Tony Anselmi – Director Grant Graham– Director Jane Trought – CFO 3
Slide 4: CEO's annual results presentation
Annual Shareholders Meeting 2 0 1 9 | CEO’s annual results presentation 4
Slide 5: A pivotal year
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation A pivotal year + Record operating profit + Completion of Mt Difficulty purchase. + Long term distribution agreement with Lion NZ Ltd entered into. 5
Slide 6: Highlights from a pivotal year
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Highlights From a pivotal year. Case sales Export cases Bottled sales Operating Reported profit 522,000 404,000 revenue earnings after tax + 11% + 23.5% $44m $5.1m $3.5m +15.7% +83.8% +94.9% Cases = 9L equivalents (e.g. 12x750ml bottles) 6
Slide 7: 2019 Results
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation 2019 Results ⏤ Operating Cashflow $6.4m vs $7.7m (significantly influenced by Mt Difficulty) ⏤ Capex $2.9m vs $2.1m ⏤ Dividend of 3 cents per share (fully imputed) maintained ⏤ Bulk sales (9 litre equivalent cases) 55,000 vs 102,000 in line with
Slide 8: Market overviews
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Market Focused on market diversification. overviews New Zealand Australia USA/Canada UK/Europe Rest of world 118,000 cases 138,000 cases 145,000 cases 97,000 cases 24,000 cases -18% +22 % +19% +33% +26% In line with Continued Focusing on the Con
Slide 9: Mt Difficulty acquisition
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Mt Difficulty Completed January 3, 2019 acquisition Sales revenue of $6.262m at an average selling price of $196 per case in the first six months. A strategically important acquisition that will deliver significant value to the Company. 9
Slide 10: Mt Difficulty acquisition: seamless integration
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Mt Difficulty Seamless integration into Foley Wines: acquisition Shipping Mt Difficulty wines from Foley Wines within a week. Mt Difficulty products benefitted from bottling and production efficiencies in the first 3 months. Financial systems in
Slide 11: Strategy recap
FOLEY WINES ASM 2019 Strategy recap 11
Slide 12: Our purpose
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Our purpose Making great wine that people love to drink around the world. 12
Slide 13: Our ambition
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Our ambition To be New Zealand’s most revered wine group Through the ownership of iconic wineries in New Zealand’s most acclaimed regions, satisfying the most discerning retailers and restaurants around the world. 13
Slide 14: Our model
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Our model OUR POI N T OF DI F F EREN CE: Five exceptional wineries and one craft distillery from three acclaimed regions, managed from one point. MARTINBOROUGH MARTINBOROUGH MARLBOROUGH CENTRAL OTAGO 14
Slide 15: Significant progress on our strategic priorities
FOLEY WINES ASM 2019 Significant progress on our strategic priorities 15
Slide 16: Our long term strategic priorities recap
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Our long term strategic priorities Recap PREMIUMISATION + PORTFOLIO + RELATIONSHIPS + DISTRIBUTION Continuing to realise Leveraging the power Nurturing strong, Building premium, our premiumisation of our portfolio long ter m relationships divers
Slide 17: Strategic priority one progress
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Strategic Continuing to realise our priority one premiumisation strateg y progress: Significant brand building activity in the past 12 months. Decrease in bulk wine sales as demand for our branded products grows. 17
Slide 18: Strategic priority one progress
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Strategic Continuing to realise our priority one premiumisation strateg y progress: Strong recognition of wine quality by influential writers and competitions. 18
Slide 19: Strategic priority one progress
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Strategic Continuing to realise our priority one premiumisation strategy progress: Repositioning of brand price points. Net case realisation to December (the period prior to the Mt Difficulty acquisition) was increased by $10 per case in the New
Slide 20: Strategic priority two progress
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Strategic Leveraging the power of priority two our portfolio progress: Our portfolio is delivering a total solution for customers seeking premium partners who can commit to long term supply arrangements. Cross selling the broader portfolio into
Slide 21: Strategic priority three progress
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Strategic Nurturing strong, long term priority three relationships in key markets progress: Major existing retailers coming to us for range extensions, including core ranging across the portfolio. Strong collaboration with these retailers to bui
Slide 22: Strategic priority four progress
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Strategic Building a premium distribution priority four platform in New Zealand. progress: Lion NZ depletions-out of Foley Wines products up 78% for the first quarter vs year ago. 22
Slide 23: Building a premium distribution platform in New Zealand
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Strategic Building a premium distribution priority platform in New Zealand. four: Foley brand portfolio with Lion is outperforming the market in New Zealand. 50% 41% 40% 30% 27% 20% 17% 10% 7% 4% 1% 0% -4% -6% -10% Premium SB in NZ Luxury PN in
Slide 24: Outlook
FOLEY WINES ASM 2019 Outlook 24
Slide 25: A record month
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation A record Company progressing well toward month 600,000 case forecast for 2020. Year to date case sales to October are 210,000 cases. October was a record month with approximately 75,000 cases shipped. Focus on increasing EBITDA margin. Benchmark
Slide 26: Outlook continued: 2021 target
F O L E Y W I N E S A S M 2 0 1 9 | CEO’s Presentation Outlook continued 2021 target. While the business will continue to face a number of uncertainties around FX risk, unexpected changes in taxes and duties and agricultural risk, the Directors believe that with the progress being made, and as we co
Slide 27: See the Vavasour story here
SEE THE VAVASOUR STORY HERE 27
Slide 28: Shareholder questions
FOLEY WINES ASM 2019 Shareholder questions 28
Slide 29: Resolutions
FOLEY WINES ASM 2019 Resolutions 1. Auditor’s remuneration 2. Re-election of Mark Turnbull 3. Election of Grant Graham 4. Adoption of new constitution 29
Slide 30: General business
FOLEY WINES ASM 2019 General business THANK YOU 30