Slide 1: 2016 Results Announcement
2016 RESULTS ANNOUNCEMENT 26 August 2016
Slide 2: Agenda
AGENDA Introduction to meeting. Business Performance – 2016 Year under review. Investing for the Future. Delegat Outlook. 2
Slide 3: Performance Highlights
PERFORMANCE HIGHLIGHTS Record global case sales of 2,411,000. 9% higher than last year. Strong volume growth in key North America region – sales of more than one million cases for the first time. Record Operating NPAT of $37.0 million. 8% higher than last year. Record harvest – excellent quality. St
Slide 4: Case Sales and FX
CASE SALES AND FX 2016 2015 %∆ Case Sales (000's) Actual Actual 2015 UK, Ireland and Europe 694 647 7% North America (USA and Canada) 1,012 888 14% Australia, NZ and Asia Pacific 705 675 4% Total Cases 2,411 2,210 9% 2016 2015 %∆ Foreign Currency Rates Actual Actual 2015 GB£ 0.4675 0.4739 1% AU$ 0.9
Slide 5: Revenue Growth Analysis
REVENUE GROWTH ANALYSIS 2016 2015 %∆ NZ$ millions Actual Actual 2015 Operating Revenue 242.7 211.9 15% Revenue movements breakdown: Volume 9% Value 6% Foreign Exchange 4% Underlying Price/Product Mix 2% 5
Slide 6: Operating Performance
OPERATING PERFORMANCE 2016 2015 %∆ NZ$ millions Actual Actual 2015 Operating Revenue1 242.7 211.9 15% 2 Operating Gross Profit 126.8 114.4 11% Operating Gross Margin 52% 54% 3 Operating Expenses (65.4) (57.1) -15% Operating EBIT4 61.4 57.3 7% Operating EBIT % of Revenue 25% 27% Interest and Tax (24.
Slide 7: Operating Profit Movement – Last Year
OPERATING PROFIT MOVEMENT – LAST YEAR NZ $millions 42.0 40.0 $5.5m 38.0 $1.7m $37.0m $1.3m 36.0 $34.4m 34.0 ($0.6m) ($5.3m) 32.0 30.0 28.0 26.0 24.0 22.0 20.0 Jun 2015 Actual Margin impact Promotion costs Net FX Impact Interest Other Jun 2016 Actual 7
Slide 8: Impact of 'Fair Value' Adjustments
IMPACT OF ‘FAIR VALUE’ ADJUSTMENTS 2016 2015 %∆ NZ$ millions Actual Actual 2015 Operating NPAT 37.0 34.4 8% Operating NPAT % of Revenue 15% 16% Biological Assets (Vines) 7.0 19.3 -64% 1 Biological Produce (Grapes) 11.8 (10.4) n/m2 Derivative Instruments 4.7 (11.6) n/m2 Total Fair Value Items 23.5 (2
Slide 9: Balance Sheet Summary
BALANCE SHEET SUMMARY 2016 2015 %∆ NZ$ millions Actual Actual 2015 Assets Current Assets 178.7 155.9 15% Fixed Assets 410.0 313.0 31% Biological Assets 94.5 86.2 10% Total Assets 683.2 555.1 23% Liabilities Current Liabilities 37.0 42.8 -14% Deferred Tax Liabilities 42.6 33.6 27% Net Debt 282.7 202.
Slide 10: Net Debt Movement
NET DEBT MOVEMENT NZ $millions 300.0 $11.1m $282.7m 280.0 $50.7m ($3.4m) 260.0 240.0 $64.8m 220.0 $202.0m 200.0 180.0 $16.6m 160.0 140.0 ($59.1m) 120.0 100.0 June 2015 Cash from Working Capex Vineyard Dividend FX Jun 2016 Net Debt Operations Capital Development Net Debt 10
Slide 11: Net Debt Overview
NET DEBT OVERVIEW 2016 2015 %∆ NZ$ millions Actual Actual 2015 Funding Operating Cash Flow 42.5 36.5 16% Net Debt 282.7 202.0 -40% Key Ratios Operating Profit Measures Interest Cover 6.33 6.44 -2% Return on Equity1 15.6% 16.3% -4% Return on Capital Employed2 12.8% 14.6% -12% Reported Profit Measures
Slide 12: 2016 Harvest
2016 HARVEST NZ Harvest was 33,236 tonnes: - delivered excellent quality in all regions; - was 33% higher than last year; - was in line with NZ industry which was up 34% to 436,000 tonnes. Barossa Valley Harvest was 2,601 tonnes, 56% higher than last year. Impact on Outlook - 2016 vintage will
Slide 13: Agenda
AGENDA Introduction to meeting. Business Performance – 2016 Year under review. Investing for the Future. Delegat Outlook. 13
Slide 14: Investing in Growth - Capital Expenditure Update
INVESTING IN GROWTH - CAPITAL EXPENDITURE UPDATE 2014: Includes acquisition of bare land in New Zealand and Australia, Marlborough vineyard developments 120 114 and commencement of Hawke’s Bay winery construction 100 2015: Includes vineyard developments in Hawke’s Bay, Marlborough and 76 79 80 M
Slide 15: Agenda
AGENDA Introduction to meeting. Business Performance – 2016 Year under review. Investing for the Future. Delegat Outlook. 15
Slide 16: Accounting Standard Changes - Bearer plants (vines)
Accounting Standard Changes - Bearer plants (vines) From 1 July 2016, bearer plants (grape vines) will be within the scope of NZ IAS 16: Property, Plant and Equipment. Under NZ IAS 16, the Group has chosen to adopt the cost model to value their bearer plants from 1 July 2016 and will be required
Slide 17: Delegat Sales Growth 2014 - 2021
DELEGAT SALES GROWTH 2014 - 2021 4000 3500 3,401 3,211 3,015 Thousands 9 Litre Cases 3000 2,816 2,632 2500 2,411 2,210 2,031 2000 1500 1000 500 0 2014 2015 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Case Sales (000's) Actual Forecast Projection Projection Projection Projection UK, I
Slide 18: FY17 Operating Profit Guidance
FY17 Operating Profit Guidance The Group faces risks in the form of exchange rate volatility which make it difficult to accurately forecast financial performance. Based on the prevailing exchange rates, the Group forecasts a 2017 operating profit result in line with this year's record performance. I
Slide 19: Thank you
DELEGATE Thank you