Foley Wines Ltd. · NZX:FWL
Foley Wines — Shareholder Meeting (November 2021)
31 slides from Foley Wines's shareholder meeting presentation, Nov 17, 2021
Slide 1: Annual Shareholders Meeting 2021
Annual Shareholders Meeting 2 0 21 1
Slide 2: Agenda
FOLEY WINES ASM 2021 ASM 2021 Agenda Introduction Formalities CEO’s presentation Shareholder questions Resolutions Conduct of voting General business Meeting close 2
Slide 3: Introductions
FOLEY WINES ASM 2021 ASM 2021 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 2021 Annual Shareholders Meeting 2021 CEO’s annual results presentation 4
Slide 5: 2021 Results
FOLEY WINES ASM 2021 PERFORMANCE OVERVIEW 2021 Results Achieved a record operating earnings against a background of uncertainty and disruption of supply chain and major logistics issues with shipping. 5
Slide 6: Continued Premiumisation
FOLEY WINES ASM 2021 PERFORMANCE HIGHLIGHTS Continued Premiumisation Case sales Domestic Bottled sales Operating Reported cases revenue earnings profit after tax 565,000 170,299 $53m $8m $3.9m + 6% + 8.6% +6.6% +3.7% -44% Cases = 9L equivalents (i.e. 12x750ml bottles) 6
Slide 7: 2021 Results
FOLEY WINES ASM 2021 PERFORMANCE HIGHLIGHTS 2021 Results Operating Cashflow $7.2 vs $10.8m Capex $5.6 vs $4.42m Dividend of 4 cents per share (fully imputed), increased from 3 cents last year. 7
Slide 8: Bottled Case Sales
FOLEY WINES ASM 2021 MARKET OVERVIEWS Bottled Case Sales New Zealand Australia USA/Canada UK/Europe Rest of world 170,000 cases 135,000 cases 127,000 cases 99,000 cases 34,000 cases +8.3% +2.3% +5.0% +7.6% +9.7% 8
Slide 9: Considerable Disruption
FOLEY WINES ASM 2021 COVID 19 Considerable Disruption Downturn in hospitality, cruiseline and airline sales. Costs associated with relabelling to meet different market requirements. Global shipping disruptions delaying shipping bookings from a standard of 2 weeks out to 3-4 months. Final result clos
Slide 10: 2021 Harvest
FOLEY WINES ASM 2021 PERFORMANCE HIGHLIGHTS 2021 Harvest Total harvest 5,582 tonnes – down 28% on prior year. Driven predominately through adverse weather conditions through flowering. Widely reported by media as affected large sector of the industry. Largely insulated from the bottom line effect th
Slide 11: Strategy recap
FOLEY WINES ASM 2021 Strategy recap 11
Slide 12: Making great wine that people love to drink around the world.
FOLEY WINES ASM 2021 OUR PURPOSE Making great wine that people love to drink around the world. 12
Slide 13: To be New Zealand's most revered wine group
FOLEY WINES ASM 2021 OUR AMBITION To be New Zealand’s most revered wine group Through the ownership of iconic wineries in New Zealand’s most acclaimed regions, satisfying the most discerning retailers and restaurants around the world. 13
Slide 14: Five exceptional wineries and one craft distillery from three acclaimed regions
FOLEY WINES ASM 2021 OUR MODEL Five exceptional wineries and one craft distillery from three acclaimed regions, managed from one point. MARTINBOROUGH MARLBOROUGH CENTRAL OTAGO 14
Slide 15: Continuing to realise our premiumisation strategy
FOLEY WINES ASM 2021 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. 15
Slide 16: Leveraging the power of our portfolio
FOLEY WINES ASM 2021 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. 16
Slide 17: Nurturing strong, long-term relationships
FOLEY WINES ASM 2021 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. 17
Slide 18: Building premium, diversified distribution platforms
FOLEY WINES ASM 2021 OUR LONG TERM STRATEGIC PRIORITIES Building premium, diversified distribution platforms A sales support structure in New Zealand giving us access to premium distribution across all channels. Strong on-premise focus in New Zealand. Focus on geographical diversification of sales.
Slide 19: Investing for the future
FOLEY WINES ASM 2021 Investing for the future 19
Slide 20: Martinborough Development
FOLEY WINES ASM 2021 INVESTING FOR THE FUTURE Martinborough Development Total investment $11m, $3.5m spent in last year (underground barrel facility). Includes 100 seat restaurant, private dining room, tasting room, Lighthouse distillery and warehouse. Creation of world class “spiritual home” of all
Slide 21: Martinborough Development
FOLEY WINES ASM 2021 INVESTING FOR THE FUTURE Martinborough Development 21
Slide 22: Mt Difficulty Development
FOLEY WINES ASM 2021 INVESTING FOR THE FUTURE Mt Difficulty Development Was an original condition of OIO. New concept signed off by board and expect to lodge new resource consent by end of year. Commence building in 2022. Enhancement of the Mt Difficulty “spiritual home”. 22
Slide 23: Mt Difficulty Development
FOLEY WINES ASM 2021 INVESTING FOR THE FUTURE Mt Difficulty Development 23
Slide 24: Zebra vineyards acquisition
FOLEY WINES ASM 2021 INVESTING FOR THE FUTURE Zebra vineyards acquisition OIO application now lodged – price confidential until decision – finance approved from BNZ. Vineyard to support long term growth of Roaring Meg brand. 55.5 hectares, 30 planted in Pinot Noir. Intention to plant another approxi
Slide 25: Replant programmes
FOLEY WINES ASM 2021 INVESTING FOR THE FUTURE Replant programmes Replant programme this year $700k included in CAPEX. Focussed on poor yielding blocks in Central Otago and Martinborough. Long term plan to align plantings with future growth needs, e.g. Riesling being replanted with Pinot Noir in Cent
Slide 26: Building powerful brands
FOLEY WINES ASM 2021 CONTINUING OUR PREMIUMISATION STRATEGY Building powerful brands Packaging refresh for Martinborough Vineyard reaffirms this as one of New Zealand’s iconic luxury wine brands. Te Tera recast in contemporary, stylish packaging reflecting its wine style. Both new labels on shelves
Slide 27: Outlook
FOLEY WINES ASM 2021 Outlook 27
Slide 28: A strong foundation for growth
FOLEY WINES ASM 2021 OUTLOOK A strong foundation for growth At this stage, there is no change in the forecast of an operating earnings before tax of $8m for the year ended June 2022. However, Covid, shipping, exchange rates all can have a material influence on this. 28
Slide 29: Shareholder questions
FOLEY WINES ASM 2021 Shareholder questions 29
Slide 30: Resolutions
FOLEY WINES ASM 2021 ASM 2021 Resolutions 1. Auditor’s remuneration 2. Re-election of William P Foley II 3. Re-election of Antony Anselmi 4. Re-election of Paul Brock 30
Slide 31: General business
FOLEY WINES ASM 2021 General business THANK YOU 31