Australian Vintage Ltd · ASX:AVG
Australian Vintage — Shareholder Meeting (November 2022)
40 slides from Australian Vintage's shareholder meeting presentation, Nov 23, 2022
Slide 1: AVG AGM Addresses and Presentation (ASX announcement)
Company Announcements Australian Securities Exchange 23 November 2022 AVG AGM Addresses and Presentation Australian Vintage Limited (ASX: AVG) will today address shareholders at its Annual General Meeting to be held as a hybrid meeting, commencing at 11.30 am Australian Eastern Daylight Saving Time.
Slide 2: Chairman's address – Richard Davis
2022 Annual General Meeting Chairman’s address – Richard Davis I am pleased to report strong global pillar performance, continued premiumisation and innovation have led to increased market share in all geographies, despite the commencement of significant global inflationary pressures within the fina
Slide 3: Chairman's address: sustainability and Australian wine industry
1. Renew and regenerate our environment, 2. Engage and nourish our people and communities, and 3. Share and grow as an impactful business Environmentally AVG is committed to reducing absolute scope 1, 2 and 3 emissions by 90% by 2040 from a 2021 base year according to the Net-Zero Standard published
Slide 4: CEO's address – Craig Garvin: Overview
On behalf of the Board, I would like to thank the people at Australian Vintage, led by Craig, for delivering an underlying result that was 7% higher than last year, a year of peak COVID demand, while demonstrating resilience in a highly competitive and challenging market. We are proud of our staff w
Slide 5: Values, behaviours and balanced scorecard
responsive and we must be empowered. Underlying all these values are our behaviours which include integrity, respect and trust. It is the culture of the company and its staff which has underpinned the ongoing growth and success of this business. These behaviours form an integral part of each person’
Slide 6: Regional performance: ANZ and UK/EU/NA
ANZ AVG achieved market share gains in both Australia and New Zealand, growing at 5% and 9% respectively. Within this market share growth we were able to achieve growth in branded sales of 3%, which was offset by a decrease in a low margin processing contract. All four pillar brands grew with Nepent
Slide 7: Strong FY22 financial performance
Strong FY22 financial performance The FY22 result was very pleasing with continued growth in our portfolio of key brands, especially on the back of 2021 representing a peak year in sales driven by Covid. Pillar brands now represent 78% of our total sales compared to 58% in FY18. Our total revenue ha
Slide 8: Delivery against strategic imperatives
I am pleased to say that the team at AVG have delivered on all of these strategic imperatives excluding acquiring additional brands. Acquisition values have been too high however, we are seeing opportunities in this space. We have increased the portfolio by increasing our revenue and gross margin fr
Slide 9: Our approach to sustainability
Our approach to sustainability is a balanced one, encompassing our responsibilities across environment, social and governance (ESG). AVG’s three strategic priorities are to: • Renew and regenerate our environment • Engage and nourish our people and communities • Share and grow as an impactful busine
Slide 10: Margin outlook and inflationary pressures
seafreight was to go back to pre FY22 levels gross margin would be ~ 35%. Therefore, our underlying business and strategy is healthy. This reinforces our focus on growing share so that once the inflationary pressures ease AVG will be well placed to deliver our expected underlying profit of over $25
Slide 11: Annual General Meeting 23 November 2022
ANNUAL GENERAL MEETING 23 NOVEMBER 2022
Slide 12: Your Board of Directors
Your Board of Directors Richard Davis John Davies Chairman Naseema Sparks AM Non-Executive Director Non-Executive Director Craig Garvin Peter Perrin Executive Director, Non-Executive Director Chief Executive Officer 2
Slide 13: How to vote
How to vote • When the poll is open, select the vote icon at the top of the screen Items of Business • To vote, select either For, Against or Abstain 2A Re-elect Mr Sam Sample as a Director FOR AGAINST ABSTAIN • You will see a vote confirmation • To change or cancel your vote “click here 2B Re-elect
Slide 14: How to ask a question
How to ask a question • To ask a written question select the Q & A icon • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button • To ask a verbal question follow the instructions below the broadcast window. 4
Slide 15: Disclaimer
Disclaimer The presentation has been prepared by Australian Vintage Limited (ACN countries and markets in which AVG operate. They also include general 052 179 932) (“AVG”) (including its subsidiaries, affiliates and associated economic conditions, exchange rates, interest rates, the regulatory compa
Slide 16: Agenda
Agenda 1) Chairman’s Address 2) CEO’s Address 3) Financial Position 4) Formal Proceedings & Shareholder Questions 6
Slide 17: Chairman's Address
4 CHAIRMAN’S ADDRESS Fy
Slide 18: Australian Wine Industry
Australian Wine Industry Exports AVG growing market share in all key geographies whilst total Australian export sales decreasing • 12 months to September 2022, Australian export sales decreased by 1% to $2.0.billion and volume decreased 1% to 627 million litres • Tough market conditions drive the de
Slide 19: CEO's Address
4 CEO’S ADDRESS Le
Slide 20: Overview: FY22 year in review
Overview FY22 year in review Continued strong global pillar brand performance, premiumisation and innovation have led to increased market share and margin improvement… • Market share growth across all key geographies despite global freight disruption • Pillar brand sales increased to 78% of total re
Slide 21: Innovation to keep the consumer at the heart of everything
We pride ourselves on innovation to keep the consumer at the heart of everything we do Our Vision To be the first choice for every occasion Our Purpose Make the world a smaller place through sharing good times Our Mission We put the consumer at the heart of everything we do Our Values W I N E Workin
Slide 22: Our strategic plan continues to position us well for growth
Our strategic plan continues to position us well for growth… Consumers and Markets and People ESG Return on Assets Brands Customers Investing in pillar brands Significantly improved Staff engagement 70% Climate action towards Underlying ROCE 7.5% our business in Aus and Top Quartile Net Zero Pillar
Slide 23: FY22 underlying results demonstrate strong performance against strategy
…with underlying results for FY22 demonstrating strong performance against our strategy Consumers and Markets and People ESG Underlying Return Brands Customers Pillar Brand Sales Outgrowing the market Employee engagement ESG journey advanced Underlying EBITDAS $203.2m +4% in key geographies (package
Slide 24: Investment in pillar brands has driven outperformance of wine category
Investment in pillar brands has driven outperformance of wine category in key markets …leading to AVL Pillar brands delivering top-line… Pillar brands all growing share outperforming in key markets $M Sales $ Shipments vs PY $ RSV vs PY Scan sales Wine -4% +8% CAGR Market +$29.0m 203.2 195.1 -5% -10
Slide 25: Strong financial performance in a difficult global environment
Strong financial performance in a difficult global environment Total Revenue EBITDAS EBITS $260.1m $48.2m (underlying)1 $33.3m (underlying)1 Other Pillar Brands 300 50 35 4.5 4.5 250 30 40 200 25 30 20 150 45.9 20 43.7 15 31.2 28.8 100 78% 35.4 21.7 60% 65% 71% 29.7 10 21.0 58% 10 24.2 16.8 50 5 0 0
Slide 26: Industry megatrends and tailwinds
The underlying megatrends driving the industry provide some tailwinds and underpin our strategy Industry Tailwinds 16
Slide 27: Strategic execution against strategic pillars
Strategic execution - we are delivering against our strategic pillars led by consumer research Strategic direction Achieved Drive the portfolio including acquisition Increased pillar brand revenue and improved margin, expanded market offerings, acquisition potential increasing Drive people engagemen
Slide 28: Recent marketing activities (video)
Our recent marketing activities supporting our premiumisation, innovation, and investment into alternative revenue streams (video will play) Video will play 18
Slide 29: New portfolio of beverages
Leveraged our technical, brand building and commercial skills to create a new portfolio of beverages that tap into dynamic categories and target new drinkers and occasions 19
Slide 30: Our approach to sustainability
Our approach to sustainability is a balanced one, encompassing our responsibilities across environment, social and governance (ESG). 20
Slide 31: Net positive impact across the value chain
Net positive impact on people, planet, and profits by integrating sustainability across entire value chain 21 21
Slide 32: Climate action towards Net Zero
Climate action towards Net Zero AVL is committed to NET ZERO carbon emissions by 2040, across Scopes 1, 2 & 3. We have taken a science backed approach, to be validated by the Science Based Targets Initiative. 42% ve" Q NET ZERO oO Across Scopes re) Reduction in Scope 1,2 and 3 SCIENCE (e) 3 GHG emis
Slide 33: Trading update and outlook
Trading update and outlook • FY23 EBITS forecast to be in line with prior year, subject to FX, agricultural risk and planned asset sales • Softer trading conditions globally driven by hyper inflation and interest rate increases compounded by aggressive Australian export behaviour arising from red wi
Slide 34: Formal Proceedings
Formal Proceedings 24
Slide 35: Accounts
Accounts To consider and receive the Financial Report, the Directors’ Report and the Auditor’s Report of the Company for the year ended 30 June 2022 25
Slide 36: Resolution 1: Election of Director – Richard Davis
Resolution 1 Election of Director – Richard Davis To consider and if thought fit, pass the following resolution as an ordinary resolution: “That Richard Davis be re-elected as a non- executive director of the Company.” 26
Slide 37: Resolution 2: Adoption of Remuneration Report
Resolution 2 Adoption of Remuneration Report To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That the Remuneration Report of the Company for the year ended 30 June 2022 be adopted” 27
Slide 38: Shareholder Questions
Shareholder Questions 28
Slide 39: Close of Voting
Close of Voting 29
Slide 40: Thank You
Thank You 30
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