Foley Wines Ltd. · NZX:FWL
Foley Wines — Shareholder Meeting (November 2020)
31 slides from Foley Wines's shareholder meeting presentation, Nov 19, 2020
Slide 1: Annual Shareholders Meeting 2020
Annual Shareholders Meeting 2 0 2 0 1
Slide 2: Agenda
FOLEY WINES ASM 2020 Agenda Introduction Formalities CEO’s presentation Shareholder questions Resolutions Conduct of voting General business Meeting close 2
Slide 3: Introductions
FOLEY WINES ASM 2020 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
FOLEY WINES ASM 2020 Annual Shareholders Meeting | 2 0 2 0 CEO’s annual results presentation 4
Slide 5: Positive momentum maintained despite global headwinds
FOLEY WINES ASM 2020 | CEO’s Presentation Positive momentum maintained despite global headwinds + Remained focused on premiumisation strategy + Significant progress despite global headwinds + A strong foundation for growth 5
Slide 6: Significant progress despite global headwinds
FOLEY WINES ASM 2020 | CEO’s Presentation HIGHLIGHTS Significant progress despite global headwinds Case Domestic Bottled sales Operating Operating Reported profit sales cases revenue EBITDA earnings after tax 533,000 157,000 $50m $15.2m $7.8m $6.9m + 2% + 32.8% +13.4% +53.2% +53.2% +96.7% Cases = 9L
Slide 7: 2020 Results
FOLEY WINES ASM 2020 | CEO’s Presentation 2020 Results ⏤ Operating Cashflow $10.8m vs $6.4m ⏤ Capex $4.42m vs $2.9m ⏤ Dividend of 3 cents per share (fully imputed) maintained These results reflect our value over volume strategy: Volume +2%, Revenue +13.4% 7
Slide 8: Focused on market and channel diversification
FOLEY WINES ASM 2020 | CEO’s Presentation MARKET OVERVIEWS Focused on market and channel diversification New Zealand Australia USA/Canada UK/Europe Rest of world 157,000 cases 132,000 cases 121,000 cases 92,000 cases 31,000 cases +33% (4)% (17)% (5)% +29% 8
Slide 9: Business as usual despite significant implications
FOLEY WINES ASM 2020 | CEO’s Presentation COVID-19 Business as usual despite significant implications Able to harvest grapes during level 4 under strict conditions. Hard-hit restaurant and airline sectors impacted our premium portfolio. Case sales up 2% for year, but final quarter down 27,000 cases
Slide 10: Strategy recap
FOLEY WINES ASM 2020 | CEO’s Presentation Strategy recap 10
Slide 11: Making great wine that people love to drink around the world
FOLEY WINES ASM 2020 | CEO’s Presentation OUR PURPOSE Making great wine that people love to drink around the world. 11
Slide 12: To be New Zealand's most revered wine group
FOLEY WINES ASM 2020 | CEO’s Presentation OUR AMBITION To be New Zealand’s most revered wine group Satisfying the most discerning retailers and restaurants around the world with brands that are authentic, sustainable and of exceptional quality. 12
Slide 13: Five exceptional wineries and one craft distillery
FOLEY WINES ASM 2020 | CEO’s Presentation OUR BUSINESS MODEL Five exceptional wineries and one craft distillery from three acclaimed regions, managed from one point. MARTINBOROUGH MARLBOROUGH CENTRAL OTAGO 13
Slide 14: Our long term strategic priorities
FOLEY WINES ASM 2020 | CEO’s Presentation STRATEGY RECAP Our long term strategic priorities PREMIUMISATION PORTFOLIO R E L A T I O N S+ HIPS Continuing to realise our Leveraging the power Nurturing strong, long ter m premiumisation strateg y of our portfolio distribution relationships Investing in b
Slide 15: Significant progress on our premiumisation strategy
FOLEY WINES ASM 2020 | CEO’s Presentation Significant progress on our premiumisation strategy 15
Slide 16: A premium for brand builders
FOLEY WINES ASM 2020 | CEO’s Presentation WHY IS PREMIUMISATION CRITICAL? A premium for brand builders 57% shipped as bulk 9L Export Price $76.77 $34.02 Packaging allowance $15.00 Comparative revenue $61.77 $34.02 80% premium for brand builders New Zealand Winegrowers 16
Slide 17: Acting sustainably is urgent, not a nice to have
FOLEY WINES ASM 2020 | CEO’s Presentation SUSTAINABILITY Acting sustainably is urgent, not a nice to have 17
Slide 18: Practical, tangible steps to safeguard our environment
FOLEY WINES ASM 2020 | CEO’s Presentation SUSTAINABILITY We’re taking practical, tangible steps to safeguard our environment for future generations RECYCLED NEW ZEALAND GLASS PACKAGING INDUSTRY-LEADING WATER CONSERVATION SYSTEMS POWERED BY SOLAR RESTORING LOCAL HABITATS SMALL FOOTPRINTS, PART OF THE
Slide 19: New direct relationships secured
FOLEY WINES ASM 2020 | CEO’s Presentation CONTINUING OUR PREMIUMISATION STRATEGY New direct relationships secured Significant new routes to market secured in Australia, UK and Asia. New channels for our premium brands. Focusing on direct channels that create mutual value. 19
Slide 20: Development of our direct-to-consumer offering
FOLEY WINES ASM 2020 | CEO’s Presentation CONTINUING OUR PREMIUMISATION STRATEGY Development of our direct-to-consumer offering Refreshed Foley Wine Club and Shareholders websites Have already seen the benefits of the introduction of Foley Rewards programme 20
Slide 21: Continuing to building powerful brands
FOLEY WINES ASM 2020 | CEO’s Presentation CONTINUING OUR PREMIUMISATION STRATEGY Continuing to building powerful brands Building the premium positioning and profile of our brands to ensure our multi-channel distribution delivers strong rate of sale for our customers. 21
Slide 22: Packaging refreshes
FOLEY WINES ASM 2020 | CEO’s Presentation CONTINUING OUR PREMIUMISATION STRATEGY Packaging refreshes Reflecting both quality and our emphasis on the environment 22
Slide 23: Continuing to building powerful brands
FOLEY WINES ASM 2020 | CEO’s Presentation CONTINUING OUR PREMIUMISATION STRATEGY Continuing to building powerful brands Focusing on high relevant reach activity that builds awareness and appetite amongst premium wine lovers – outdoor, print, digital and PR. PONSONBY CENTRAL 23
Slide 24: Continued recognition of quality
FOLEY WINES ASM 2020 | CEO’s Presentation CONTINUING OUR PREMIUMISATION STRATEGY Continued recognition of quality 24
Slide 25: Investing in the spiritual home of our brands
FOLEY WINES ASM 2020 | CEO’s Presentation CONTINUING OUR PREMIUMISATION STRATEGY Investing in the spiritual home of our brands A destination for Te Kairanga, Martinborough Vineyard and Lighthouse Gin all under one roof. Including a new custom-designed distillery to meet Lighthouse’s growing demand.
Slide 26: The first full year of trading
FOLEY WINES ASM 2020 | CEO’s Presentation MT DIFFICULTY The first full year of trading $11.3m sales revenue at an average selling price of $157 per case. Probably the most adversly affected by Covid-19 in the portfolio due to on-premise focus, however in the first quarter we are seeing an uplift in
Slide 27: Outlook
FOLEY WINES ASM 2020 | CEO’s Presentation Outlook 27
Slide 28: Outlook
FOLEY WINES ASM 2020 | CEO’s Presentation Outlook Extremely uncertain times mean the ability to give guidance is difficult, however we firmly believe we have made significant progress in the past 18 months with our distribution gains. Our target for the full year is 600,000 cases. By the end of Nove
Slide 29: Shareholder questions
FOLEY WINES ASM 2020 Shareholder questions 29
Slide 30: Resolutions
FOLEY WINES ASM 2020 Resolutions 1. Auditor’s remuneration 2. Re-election of Bill Foley 30
Slide 31: General business
FOLEY WINES ASM 2020 General business THANK YOU Shareholders not yet receiving Shareholder Offers, please email: MARKETING@FOLEYWINES.CO.NZ 31