Australian Vintage Ltd · ASX:AVG
Australian Vintage — Shareholder Meeting (November 2020)
15 slides from Australian Vintage's shareholder meeting presentation, Nov 25, 2020
Slide 1: AVG AGM Addresses and Presentation
For personal use only Company Announcements Australian Securities Exchange 25th November 2020 AVG AGM Addresses and Presentation Australian Vintage Limited (ASX: AVG) will today address shareholders at its Annual General Meeting to be held virtually, commencing at 2.00 pm Australian Eastern Daylight
Slide 2: Chairman's Address – Richard Davis
2020 Annual General Meeting Chairman’s Address – Richard Davis For personal use only Normally my AGM presentation would cover the company’s financial results together with an overview of the industry and finally a comment on the outlook. The CEO’s address focused on brands, marketing initiatives, aw
Slide 3: For personal use only
• The planned development of a climate change policy which will regularly monitor performance against set objectives; For personal use only • Adhering to product quality and safety standards and certifications to continue to produce exceptional quality wine; • Good corporate governance and transpare
Slide 4: For personal use only
industry. AVL remains committed to the China market with the support from our China based distribution partner. AVL has fully cooperated with the investigation and we remain confident For personal use only that diplomacy by both Governments will ultimately prevail allowing Australian Vintage Limited
Slide 5: Chief Executive Officer's Address – Craig Garvin
Chief Executive Officer’ Address – Craig Garvin For personal use only Thankyou Richard and welcome to all our shareholders joining us today. Before I provide some insight on the FY20 result I would like to share some of my thoughts on this company. As you are all aware I have now been with the busin
Slide 6: For personal use only
Australian business delivered an EBIT result of $4.9 million, $0.7 million up on last year. The combination of consumer focus with retail partners, innovation and strong cost For personal use only control all contributed to the positive result in very challenging circumstances. • New Zealand EBIT wa
Slide 7: For personal use only
Putting the consumer at the heart of everything we do will see marketing and advertising expenditure increase by 20% in FY21 as we deploy a more targeted approach to brand For personal use only marketing in our various key markets. To support this, we will be investing in our Cellar Doors, Digital T
Slide 8: For personal use only
The improved 2020 vintage resulted in an increased throughput at our Buronga Hill Winery which together with improved packaging efficiency at our Merbein facility, will result in a $3 For personal use only million reduction in our FY21 costs when compared to FY20. For the first quarter of FY21 our t
Slide 9: Chief Financial Officer's Address – Mike Noack
Chief Financial Officer’s Address – Mike Noack For personal use only Thankyou Craig and hello to all our shareholders. What I will to cover this afternoon are three key metrics that show how our business has improved over the last 5 years – • Cash Flow from Operating activities • Total Net Borrowing
Slide 10: Australian Wine Industry
Australian Wine Industry For personal use only EXPORTS • 12 months to September 2020, Australian export sales increased by 4% to $3.0 billion and volume decreased 0.4% to 771 million litres • Export growth particularly strong in the July to September 2020 quarter with value of exports increasing by
Slide 11: FY20 Performance Highlights
FY20 Performance Highlights For personal use only Improved performance through challenging trading conditions OPERATING CASH TOTAL SALES EBIT NPAT FLOW $22.3 million 6% $267.1 million 1% $19.2 million 18% $11.0 million 35% NET 4 Key Brand Sales ROCE* EPS BORROWINGS $174.5 million 8% 5.1%
Slide 12: FY20 Performance by Segment
FY20 Performance by Segment For personal use only Australasia/North America UK/Europe • 30% EBIT decline to $5.5 million • 6% EBIT growth to $11.9 million • Australian business performed well with EBIT • McGuigan brand increased by 13% up 18% • New Zealand business EBIT down $0.2 million Australasia
Slide 13: Key Future Strategies
Key Future Strategies For personal use only Increased investment and focus on our key pillar brands, McGuigan, Tempus Two, Nepenthe and Barossa Valley Wine Company Innovation such as the recently introduced McGuigan Zero Putting the consumer at the heart of everything we do • increased advertising e
Slide 14: Outlook
Outlook For personal use only • First quarter of FY21 total sales up 20% • 4 key brands have grown 27% in the first quarter • Operating Cash flow to improve Based on: • Current exchange rates • A normal vintage • No further impact due to COVID-19 • No unfavourable impact from Brexit Forecast FY21 ne
Slide 15: Improving Financial Position
Improving Financial Position For personal use only Cash Flow from Operating Activities Net Debt ($M) Return on Capital Employed (%) ($M) 110 (ROCE) 101.4 8.00% 35 100 30 6.60% 90 30 26.7 82.8 23.6 80 77.2 6.00% 22.3 72.4 25 70 67.3 60 4.40% 4.30% 4.30% 4.50% 20 50 4.00% 14 50 3.00% 15 40 10 6.5 30 2
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