Foley Wines Ltd. · NZX:FWL
Foley Wines — Foley Family Wines — Shareholder Meeting (November 2017)
21 slides from Foley Wines's shareholder meeting presentation, Nov 9, 2017
Slide 1: Foley Family Wines Annual Shareholders' Meeting
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING 09 NOVEMBER 2017
Slide 2: Agenda
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING AGENDA 1. 2017 – SIGNIFICANT EVENTS 2. OVERVIEW OF RESULTS 3. 2017 VINTAGE 4. OUR VISION, PURPOSE AND STRATEGY 5. 2018 CHALLENGES 6. MOVE TO NZX MAIN BOARD 7. QUESTIONS
Slide 3: Significant Events 2017
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING SIGNIFICANT EVENTS 2017 • 7.8 Richter Culverden Earthquake on 14th November 2016 – caused significant damage at Grove Mill ▪ All tanks needed to be repaired or replaced ▪ Race against time to be fixed in time for harvest ▪ A lot of uncertainty in terms
Slide 4: Overview of Results
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING OVERVIEW OF RESULTS Operating earnings (before revaluations) $5m vs 2016 $4.3m Profit after tax for group $3.06m vs 2016 $4.96m Case sales (9 litre equiv.) 389,000 vs 2016 422,000 Bulk sales (9 litre equiv.) 46,000 vs 2016 15,000 Net case realisation $
Slide 5: Overview of Results: Cash Flow
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING OVERVIEW OF RESULTS CASH FLOW • Operating cash flow $3.5m vs 2016 $2.2 m • Final dividend 3 cents per share (fully imputed) maintained
Slide 6: Overview of Results: Balance Sheet
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING OVERVIEW OF RESULTS BALANCE SHEET • Assets $128m vs 2016 $123m • Bank debt $10m vs 2016 $11m • Shareholders’ equity $91m vs 2016 $87m ➢ Strong balance sheet to leverage
Slide 7: Overview of Results: Capex
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING OVERVIEW OF RESULTS CAPEX 2014 $2.7m 2015 $3.6m (warehouse $2.2m) 2016 $2.1m (includes new palletizer $.5m) 2017 $1.7m (excludes earthquake repairs) 2018 $1.8m (excludes barrel purchases, includes new wastewater at Grove Mill $.7m) 2019 Te Kairanga new
Slide 8: 2017 Vintage
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING 2017 VINTAGE • 5,527 tonnes vs 2016 6,954 tonnes • 20% down on 2016 / 4% up on 2015 • Challenging due to cool summer and late season’s rains • Focus on quality to ensure production of world class wine
Slide 9: Vision, Purpose and Strategy
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING OUR VISION, PURPOSE AND STRATEGY
Slide 10: Vision
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING OUR VISION To become New Zealand’s most revered wine group through the ownership of iconic brands and wineries in New Zealand’s most acclaimed wine regions
Slide 11: Purpose
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING OUR PURPOSE To make great wine that people love to drink around the world – delivering a portfolio of brands that would satisfy the needs of best distributors, retailers, restaurants and consumers requiring premium New Zealand wines
Slide 12: Strategy: Produce World Class Wine
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING OUR STRATEGY PRODUCE WORLD CLASS WINE We are on the right track 2017: • 6 Trophies • 28 Gold Medals Decanter World Wine Awards 2017
Slide 13: Strategy: Other Successes
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING OUR STRATEGY OTHER SUCCESSES Lighthouse Gin is the first New Zealand Gin brand to be chosen by the Craft Gin Club in the UK, and was also featured as “Gin of the Month” in their publication “Ginned”. 17,502 Bottles of Lighthouse Gin were shipped to the
Slide 14: Strategy: Be Famous in New Zealand
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING OUR STRATEGY BE FAMOUS IN NEW ZEALAND Focus on brand building – e.g. Launch of The Weekend Chef series www.thesociety.co.nz www.Facebook.com/foodwinesociety
Slide 15: Strategy: Leverage Food and Tourism Assets
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING OUR STRATEGY LEVERAGE OUR FOOD AND TOURISM ASSETS TO MAXIMISE OUR BRANDS • Toast Martinborough Competition – Weekend at Wharekauhau Lodge • Nourish Group We want our brands to be enjoyed with great food
Slide 16: Strategy: Distributors Worldwide
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING OUR STRATEGY DISTRIBUTORS WORLDWIDE • Engagement with the best distributors in every market • Use the power of the best wine portfolio in New Zealand to leverage all of our brands • Consolidate relationships to ensure we can manage them efficiently and
Slide 17: Strategy: Acquisitions That Strengthen Our Portfolio
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING OUR STRATEGY ACQUISITIONS THAT STRENGTHEN OUR PORTFOLIO • Mt Difficulty – iconic New Zealand brand which ticks all the boxes of delivering our strategy
Slide 18: 2018 Challenges
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING 2018 CHALLENGES • Currency still volatile • Markets very competitive for New Zealand Sauvignon Blanc – e.g. Premium brands promoted at $9 in Australia • Rehabilitation of our Martinborough vineyards • Investment in brand building – major focus is to bu
Slide 19: Move to NZX Main Board
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING MOVE TO NZX MAIN BOARD • Commenced discussions with NZX • Goal is to complete this by June 2018 • Alton Jamieson resignation – we will be reviewing Board composition in the context of the proposed move to NZX Main Board • Mt Difficulty - discussions ar
Slide 20: Questions?
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING QUESTIONS?
Slide 21: How Can You Help?
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING HOW CAN YOU HELP? Buy the wines – great shareholder pricing (email sales@ffw.co.nz for details) Tell people about the Foley Wine Club www.foleywineclub.co.nz Like and share The Society on Facebook www.facebook.com/foodwinesociety
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