Australian Vintage Ltd · ASX:AVG
Australian Vintage — Shareholder Meeting (November 2011)
25 slides from Australian Vintage's shareholder meeting presentation, Nov 23, 2011
Slide 1: Annual General Meeting 23 November 2011
For personal use only ANNUAL GENERAL MEETING 23 NOVEMBER 2011 1
Slide 2: Disclaimer
Disclaimer For personal use only The information in this presentation is general advice, given in good faith and derived from sources believed to be accurate at this date but no warranty of accuracy or reliability is given and no responsibility arising in any other way including by reason of neglige
Slide 3: Annual General Meeting 23 November 2011
For personal use only ANNUAL GENERAL MEETING 23 NOVEMBER 2011 3
Slide 4: Today's Agenda
Today’s Agenda For personal use only Performance Summary Ian Ferrier Business Update Neil McGuigan Formal Proceedings Ian Ferrier 4
Slide 5: Performance Summary
For personal use only PERFORMANCE SUMMARY IAN FERRIER 5
Slide 6: Dividend returned with improved Operating Profit
Dividend returned with improved Operating Profit For personal use only 1. Net profit (before significant items) up 72% to $10.2m 2. EBIT margin increased 30% to 13% 3. Significant items after tax negative $3.7m including Loxton Winery impairment of $3.1m 4. Net Profit (after significant items) $6.6m
Slide 7: Higher value Branded Sales drive Revenue
Higher value Branded Sales drive Revenue Full Year Sales Dollar Sales ($’000) For personal use only 2009/10 2010/11 % Change Domestic Wine Branded Bottled 40,239 42,165 5 Branded Cask 8,516 6,976 (18) Private Label – Bottled 151 - na Private Label – Cask 23,376 23,030 (1) 72,282 72,171 0 Export Wine
Slide 8: 2011: Crush slightly higher than expected. Some price increases
2011: Crush slightly higher than expected. Some price increases For personal use only 1. 2011 final crush higher than expected at around 1.6m tonnes taking into account weather conditions 2. Estimated 0.1m tonnes utilised for concentrates to address low baume's reducing final crush to 1.5m tonnes 3.
Slide 9: Managing the environment with strong revenue performance and cost control
Managing the environment with strong revenue performance and cost control 1. Operating revenues $225.8m despite unfavourable exchange For personal use only rate movements of $14.4m 2. Operating Cash Flow positive 3. Net debt $161m - bulk wine purchase $10m and settlement of operating leases amountin
Slide 10: Strategic platform strengthening business
Strategic platform strengthening business For personal use only 1. Continued focus on branded sales 2. Continue to control cash flow and expenditure 3. Take advantage of our enhanced reputation as a low cost premium wine producer 10
Slide 11: Outlook
Outlook • Industry remains challenging For personal use only – oversupply exists but problem continues to reduce – competition fierce across Australia and overseas markets – individual countries and markets impacted by global financial uncertainty and this is slowing recovery of the wine industry •
Slide 12: Business Review
For personal use only BUSINESS REVIEW NEIL MCGUIGAN 12
Slide 13: Vision for the future is consistent to previous years
Vision for the future is consistent to previous years and will underpin our success For personal use only • It’s all about: – Putting the “wine” back in the wine business. – Making the “wine” the hero and the business will follow. This is important with all facets of our business, including the bran
Slide 14: A number of challenges but the outlook remains positive
A number of challenges but the outlook remains positive For personal use only • What we can’t change: – Foreign exchange rate – Global over production • What we can change: – Building value in our existing brands – Evolving Australian wines styles – Capitalising on domestic and global opportunities
Slide 15: Impact of Foreign Exchange Movements on Results and Business
Impact of Foreign Exchange Movements on Results and Business For personal use only • With approximately 60% of our total export sales in GBP, 5% in Euro and 1% in CAD, AVL’s exposure to exchange rates is significant. • The average weighted GBP in 10/11 was 62.2 compared to 53.5 the previous year. Th
Slide 16: McGuigan continues solid annual growth globally
McGuigan continues solid annual growth globally increasing its value sales by $3.5m • Black Label Red No. 1 selling brand by For personal use only volume in the Australian market • McGuigan is now the 14th largest wine brand in the UK market • McGuigan No. 1 Australian brand in Ireland and No. 2 bra
Slide 17: Achieving our objective of growing branded wine sales
We are achieving our business objective of “growing branded wine sales” through remaining relevant with consumers For personal use only McGuigan Bin Range re-launched: • 66% growth on PY by value (domestic) • Bin UK 30% growth on PY by value Tempus Two Varietal Range re-launched: • Sparkling Blanc d
Slide 18: Launch of McGuigan The Semillon Blanc
Continued focus on evolving relevant & compelling wine styles – launch of McGuigan “The Semillon Blanc” For personal use only • A new millennium white burgundy style • Floral, fresh, crisp and lively • Aromatics and lift on the nose • Special commendation award for best launch: Drinks Magazine in UK
Slide 19: Rekindling of the Miranda Brand
Rekindling of the Miranda Brand Innovation and point of difference is driving Miranda growth, we are creating opportunities through NPD to be first to market. For personal use only Summer Hues Launched nationally in July 2011 - aligned with leading lifestyle group, Weigh it Up. Provides health consc
Slide 20: Marketing Initiatives
Marketing Initiatives McGuigan – Sydney Festival 2012 Official wine sponsor of Sydney Festival, which attracts 650,000 people with 55,000 glasses of wine enjoyed. For personal use only Fantastic awareness platform, and sales opportunity. Through-the-line activation, that ultimately drives consumer b
Slide 21: Our award success is a critical success factor
Our award success is a critical success factor in driving 3rd party endorsement that flows directly through to the consumer For personal use only 21
Slide 22: Our core brands continue to perform on the world stage
Our core brands continue to perform on the world stage across multiple varietals & price points Brand Awards McGuigan Trophy IWSC – International Semillon of the Year 2006 Bin 9000 Semillon For personal use only Trophy IWC - International Riesling of the Year 2004 The Shortlist Riesling Trophy IWC -
Slide 23: 2011 International Wine and Spirit competition U.K.
2011 International Wine and Spirit competition U.K. For personal use only “McGuigan Wines – International Winemaker of the Year – again!” “McGuigan Wines – Australian producer of the year – again!” 1 Trophy, 5 Gold, 19 Silver, 8 Bronze 91.9% strike rate 23
Slide 24: Responsibility to Shareholders
Responsibility to Shareholders For personal use only 1. AVL management is fully aware that we work for you, the shareholders. 2. AVL’s profit has been modest over recent years and management is continually reviewing our cost base, new business opportunities and innovation to increase profitability.
Slide 25: In summary
In summary • AVL continues to review its cost base to ensure it is appropriate for the size of our business. For personal use only • AVL’s branded business, private label, exclusive label business and contract winemaking services have the same level of quality commitment. • We have streamlined our o
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