Australian Vintage Ltd · ASX:AVG
Australian Vintage — Shareholder Meeting (November 2012)
23 slides from Australian Vintage's shareholder meeting presentation, Nov 28, 2012
Slide 1: Annual General Meeting 28 November 2012
For personal use only ANNUAL GENERAL MEETING 28 NOVEMBER 2012 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 28 November 2012
For personal use only ANNUAL GENERAL MEETING 28 NOVEMBER 2012 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: Shareholders Rewarded for Operating Profit Improvement
Shareholders Rewarded for Operating Profit Improvement For personal use only 1. Net profit up 8% to $7.1m 2. EBIT (after significant items) of $23.4m compared to $22.6m last year 3. Net Profit (before significant items) down by $3.2m against prior year due mainly to reduced yield from owned vineyard
Slide 7: 2012 a Standout Vintage for Quality
2012 a Standout Vintage for Quality For personal use only 1. Vintage estimated at 1.6 million tonnes in line with 2011. Expectations are that it will be recognised as a standout vintage in terms of quality 2. While overall grape production is close to balance with total sales, the Australian industr
Slide 8: Strong Revenue Performance Despite Strong $A Impact
Strong Revenue Performance Despite Strong $A Impact For personal use only 1. Operating revenues amounted to $228.0m after unfavourable exchange rate movements of $3.9m 2. Operating Cash Flow positive $10.6m 3. Net debt to equity reduced to 54% from 69% last year 4. SGARA (fair value of grapes picked
Slide 9: Continued Response to Industry Challenges – Focus on Branded Sales & Cash flow
Continued Response to Industry Challenges – Focus on Branded Sales & Cash flow For personal use only 1. Continued focus on branded sales • McGuigan Wines ranked the World’s 19th most admired wine brand by UK trade publication Drinks International • McGuigan Wines entered the top ten global wine bran
Slide 10: Outlook
Outlook • Industry For personal use only will remain very challenging oversupply continues to reduce while grape production appears to be in balance, we are vulnerable to returning to oversupply because our bearing area could produce higher yields in future vintages competition fierce across
Slide 11: Business Review
For personal use only BUSINESS REVIEW NEIL MCGUIGAN 11
Slide 12: Vision for AVL
Vision for AVL For personal use only TO MAXIMISE RETURNS ON SHAREHOLDERS FUNDS 1. How will this be done • Putting the “wine” back into the wine business • Making the wine the “hero” in every facet of our business branded private label exclusive label contract winemaking • Putting personality
Slide 13: Impact on Foreign Exchange Movements on Results and Business
Impact on Foreign Exchange Movements on Results and Business For personal use only • With approximately 62% of our total export sales in GBP, 6% in Euro and 2% in CAD, AVL’s exposure to exchange rates in significant • The average weighted GBP in 2011/12 was 0.65 compared to 0.62 in the previous year
Slide 14: Global Production
Global Production For personal use only Short Term 2012 Vintage Volumes • Very good - Australia, USA • Poor - NZ, Spain, Italy, France Long Term • Globally planting is continuing in USA, Chile and Argentina • Grape growing is agriculture, and a low yielding year is usually followed by a higher crop,
Slide 15: Brand Growth across all major brands
Brand Growth across all major brands For personal use only 1. McGuigan • International Winemaker of the Year 2009 | 2011 | 2012 – International Wine & Spirits Competition • Australian Producer of the Year 2009 | 2011 | 2012 - International Wine & Spirits Competition • White Winemaker of the Year 200
Slide 16: Tempus Two
Tempus Two Varietal Semillon Sauvignon Blanc 2012 – Trophy Perth Wine Show For personal use only Varietal Semillon Sauvignon Blanc 2012 – Trophy Riverina Wine Show Pewter Semillon 2011 – Trophy Hunter Valley Wine Show Pewter Botrytis Semillon 2009 – Gold Medal Pacific Rim Wine Competition Varietal V
Slide 17: Nepenthe Wines
Nepenthe Wines Australian Sauvignon Blanc Trophy 2009 | 2012 – Decanter World Wine Awards For personal use only Altitude Shiraz 2010 – Gold Medal Decanter World Wine Awards Winemaker Select Late Harvest Riesling 2010 - Trophy International Sweet Wine Challenge Ithaca Chardonnay 2011 – Gold Medal Aus
Slide 18: 2012 AVL Show Results
2012 AVL Show Results Total Medals: Trophies 22, Gold 57, Silver 107, Bronze 201 = 367 For personal use only McGuigan Trophy IWSC – Australian Producer of the Year McGuigan Trophy IWSC – International Winemaker of the Year 2012 McGuigan Trophy IWC – International White Winemaker of the Year Neil McG
Slide 19: Marketing Initiatives to continue to drive growth
Marketing Initiatives to continue to drive growth For personal use only McGuigan Wines McGuigan City Vineyard Dublin Nepenthe Wines McGuigan Black Label ‘Win a VW Golf’ ‘Best Australian Sauvignon Blanc’ Decanter Promotion World Wine Awards Campaign Exclusive Labels: McGuigan Reserve & Tryst by Nepen
Slide 20: New Product Launch - UK
New Product Launch - UK For personal use only • Vinni • Sparkling Moscato • 5.5% Alcohol • Pint Bottle • £3.49 20
Slide 21: 2012 International Wine & Spirit Competition UK
2012 International Wine & Spirit Competition UK For personal use only McGuigan Wines International Winemaker of the Year Australian Producer of the Year Best Semillon in the World – 2004 Bin 9000 1 Trophy, 9 Gold, 22 Silver, 8 Bronze 100% Strike Rate 21
Slide 22: 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 management is continually reviewing costs, new business opportunities and innovation to increase profitability and to maximise a return on shareholders funds. 22
Slide 23: Summary
Summary • AVL continues to review its cost base to ensure it is appropriate for the size of its For personal use only business. • AVL’s branded business, private label, exclusive label business and contract winemaking services have the same level of quality commitment. • AVL will continue to focus o
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