Foley Wines Ltd. · NZX:FWL
Foley Wines — Shareholder Meeting (November 2022)
29 slides from Foley Wines's shareholder meeting presentation, Nov 17, 2022
Slide 1: Annual Shareholders Meeting 2022
Annual Shareholders Meeting 2022 1
Slide 2: Agenda
FOLEY WINES ASM 2022 ASM 2022 Agenda Introduction Formalities CEO’s presentation Shareholder questions Resolutions Conduct of voting General business Meeting close 2
Slide 3: Introductions
FOLEY WINES ASM 2022 ASM 2022 Introductions BILL FOLEY MARK TURNBULL PAUL BROCK TONY ANSELMI GRANT GRAHAM JANE TROUGHT Chairman Director and CEO Deputy Chairman Director Director CFO 3
Slide 4: CEO's annual results presentation
FOLEY WINES ASM 2022 Annual Shareholders Meeting 2022 CEO’s annual results presentation 4
Slide 5: 2022 Results
FOLEY WINES ASM 2022 PERFORMANCE OVERVIEW 2022 Results Strong result achieved against a poor 2021 vintage, continued disruption due to Covid, labour shortages and logistical issues. 5
Slide 6: Continued premiumisation
FOLEY WINES ASM 2022 PERFORMANCE HIGHLIGHTS Continued premiumisation Case sales Bottled sales Operating Reported profit revenue earnings after tax 525,000 $55m $7.8m $6.2m - 7% +2.8% -3.1% +60.3% Cases = 9L equivalents (i.e. 12x750ml bottles) 6
Slide 7: 2022 Results
FOLEY WINES ASM 2022 PERFORMANCE HIGHLIGHTS 2022 Results Operating Cashflow $7.6m vs $7.2m Capex $6.2m vs $5.6m excluding Zebra purchase Zebra Bendigo Vineyard $6.3m (bank financed) Dividend of 4 cents per share (fully imputed) 7
Slide 8: Bottled case sales
FOLEY WINES ASM 2022 MARKET OVERVIEWS Bottled case sales New Zealand Australia USA/Canada UK/Europe Rest of world 148,000 cases 100,000 cases 100,000 cases 139,000 cases 38,000 cases -13% -26% -21% +40% +12% 8
Slide 9: Navigating through a poor 2021 harvest
FOLEY WINES ASM 2022 PERFORMANCE HIGHLIGHTS Navigating through a poor 2021 harvest Premiumisation strategy insulated business from the effects of lower inventories with a higher cost. Focus on premium brands and their routes to market resulted in trade-offs. 9
Slide 10: 2022 Harvest
FOLEY WINES ASM 2022 PERFORMANCE HIGHLIGHTS 2022 Harvest Total harvest 9,203 tonnes – up 65% on prior year. Outstanding result given adverse weather conditions heading into harvest, along with major resource issues due to Covid. Notwithstanding these difficult conditions the team produced some outst
Slide 11: A spectacular awards season
FOLEY WINES ASM 2022 PERFORMANCE HIGHLIGHTS A spectacular CHAMPION awards season “It’s the challenging vintages that reveal great winemaking teams.” Trophy Winners Gold Medal Winners
Slide 12: Strategy recap
FOLEY WINES ASM 2022 Strategy recap 12
Slide 13: Making great wine that people love to drink around the world
FOLEY WINES ASM 2022 OUR PURPOSE Making great wine that people love to drink around the world 13
Slide 14: To satisfy the most discerning retailers and restaurants at home and around the world
FOLEY WINES ASM 2022 OUR AMBITION To satisfy the most discerning retailers and restaurants at home and around the world Through the ownership of iconic wineries in New Zealand’s most acclaimed regions
Slide 15: Five exceptional wineries and one craft distillery from three acclaimed regions
FOLEY WINES ASM 2022 OUR MODEL Five exceptional wineries and one craft distillery from three acclaimed regions, managed from one point MA R TI N BO R O U G H MA R L BO R O U G H CE N TR A L O T A G O 15
Slide 16: Continuing to realise our premiumisation strategy
FOLEY WINES ASM 2022 OUR LONG TERM STRATEGIC PRIORITIES Continuing to realise our premiumisation strategy Investing in brands built on real places and people. High quality winemaking. Selling more at higher price points. 16
Slide 17: Leveraging the power of our portfolio
FOLEY WINES ASM 2022 OUR LONG TERM STRATEGIC PRIORITIES Leveraging the power of our portfolio Cross-selling the portfolio. A ‘one stop shop’ portfolio of brands across price points and regions. Delivering real value to our customers and distributors. 17
Slide 18: Nurturing strong, long-term relationships
FOLEY WINES ASM 2022 OUR LONG TERM STRATEGIC PRIORITIES Nurturing strong, long-term relationships A collaborative and agile partner delivering real value for our customers and distributors. Working with partners who can deliver our ambition. An efficient supply chain for exports. 18
Slide 19: Investing for the future
FOLEY WINES ASM 2022 Investing for the future 19
Slide 20: Martinborough Development
FOLEY WINES ASM 2022 INVESTING FOR THE FUTURE Martinborough Development 20
Slide 21: Mt Difficulty Development
FOLEY WINES ASM 2022 INVESTING FOR THE FUTURE Mt Difficulty Development 21
Slide 22: Grove Mill winery expansion
FOLEY WINES ASM 2022 INVESTING FOR THE FUTURE Grove Mill winery expansion Work is underway to complete a 1,000 tonne expansion ready for vintage 2023
Slide 23: Bringing our brands to life
FOLEY WINES ASM 2022 CONTINUING OUR PREMIUMISATION STRATEGY Bringing our brands to life Creating memorable food and wine experiences with our sister company, The Nourish Group
Slide 24: Dividend reinvestment plan
FOLEY WINES ASM 2022 Dividend reinvestment plan A number of shareholders have expressed interest in reinvesting their dividend. Plans are well advanced and we will have this in place for the 2023 dividend.
Slide 25: Outlook
FOLEY WINES ASM 2022 Outlook 25
Slide 26: Positive outlook considering global headwinds
FOLEY WINES ASM 2022 OUTLOOK Positive outlook considering global headwinds The target for this year is circa 600,000 cases which will generate an operating net profit before tax of approximately $10m. However, there are headwinds which may impact this in the new calendar year, e.g. the global econom
Slide 27: Shareholder questions
FOLEY WINES ASM 2022 Shareholder questions 27
Slide 28: Resolutions
FOLEY WINES ASM 2022 ASM 2022 Resolutions 1. Auditor’s remuneration 2. Re-election of William P Foley II 3. Re-election of Antony Anselmi 4. Re-election of Mark Turnbull 5. Re-election of Grant Graham 28
Slide 29: General business
FOLEY WINES ASM 2022 General business THANK YOU 29