Australian Vintage Ltd · ASX:AVG
Australian Vintage — Shareholder Meeting (November 2023)
35 slides from Australian Vintage's shareholder meeting presentation, Nov 22, 2023
Slide 1: AVG AGM Addresses & Presentation
22 November 2023 ASX ANNOUNCEMENT AVG AGM ADDRESSES & PRESENTATION Australian Vintage Limited (ASX: AVG) will today address shareholders at its Annual General Meeting to be held as a hybrid meeting, commencing at 2.00pm Sydney Time. For personal use only Attached is a copy of the addresses to be del
Slide 2: Chairman's Address – Richard Davis
Chairman’s Address – Richard Davis We are experiencing one of the toughest external operating environments in decades, characterised by: • low margins; • Australian wine exports declining by 11% in value; • aggressive competitor behaviour; and • significant hyperinflationary costs. In such an enviro
Slide 3: Chairman's Address (continued) and CEO Address
of $18 million pre-tax, delivering an underlying net profit after tax and pre SGARA of $4 million. We are finding ways to offset the hyperinflationary impact by taking $9 million in costs out of our business from 2023 that will take affect predominately in the second half. Craig will expand further
Slide 4: CEO Address: FY2023 results
Our continued investment in marketing and the consumer-led approach to brands has resulted in total sales revenue of $258.6 million, in line with the prior year. When most are experiencing significant declines in revenue; this is an extraordinary result, especially as we have been able to take price
Slide 5: CEO Address: people, safety and market share
Our people are our most important asset and we have had a very strong focus on culture, wellbeing and safety over the last few years. Through this focus, we have seen our total recordable injuries frequency rate decrease by 40% over the prior year. We received the Most Improved Gender Equity Award f
Slide 6: Strategic review objectives
These headlines indicate refinancing, selling of assets, consolidation and lower margins. In this environment, Australian Vintage is looking at all opportunities to drive increased value for shareholders. As previously announced, we have appointed Evans and Partners to undertake a strategic review w
Slide 7: Annual General Meeting November 2023
For personal use only ANNUAL GENERAL MEETING 22 NOVEMBER 2023
Slide 8: Board of Directors
Board of Directors For personal use only Richard Davis Naseema Sparks AM John Davies Chairman Non-Executive Director Non-Executive Director Craig Garvin Peter Perrin Executive Director, Non-Executive Director Chief Executive Officer 2
Slide 9: How to vote
How to vote • When the poll is open, select the vote icon For personal use only at the top of the screen Items of Business • To vote, select either For, Against or Abstain 2A Re-elect Mr Sam Sample as a Director FOR AGAINST ABSTAIN • You will see a vote confirmation • To change or cancel your vote “
Slide 10: How to ask a question
How to ask a question • To ask a written question select the Q & A For personal use only icon • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button • To ask a verbal question follow the instructions below the broadcast wind
Slide 11: Disclaimer
Disclaimer The presentation has been prepared by Australian Vintage Limited (ACN 052 179 932) (“AVG”) (including its subsidiaries, affiliates and associated companies) and provides general background information about AVG’s activities as at the date of this presentation. The information does not pur
Slide 12: Agenda
Agenda 1) Chairman’s address For personal use only 2) CEO’s address 3) Formal proceedings and shareholder questions 6
Slide 13: Chairman's Address
For personal use only CHAIRMAN’S ADDRESS
Slide 14: Australian wine industry
Australian wine industry AVG growing market share in all key geographies whilst total Australian export sales declining • Australian export sales decreased 11% to $1.8B, and volume decreased 4% to 604ML, in 12 For personal use only months* *Wine Australia's latest export report in September 2023 • D
Slide 15: AVG fundamentals are sound
AVG fundamentals are sound AVG continues to remain profitable, with a sustainable business model standing up against significant headwinds • Strategic plan is on track - continued investment in brands, For personal use only innovation, premiumisation and emerging markets • Significant hyperinflation
Slide 16: CEO's Address
For personal use only CEO’S ADDRESS
Slide 17: Highlights: full year 2023 results
Highlights: full year 2023 results AVG strategic plan on track despite tough trading conditions • Revenue of $258.6M in line with prior year For personal use only • AVG continued to win market share, take price and grow the mix of the premium portfolio • Innovation and premium brands represent over
Slide 18: Highlights: full year 2023 results
Highlights: full year 2023 results Industry characterised by low margins, over supply of wine and aggressive competitor behaviour For personal use only Hyperinflation absorbed EBITDAS (underlying) EBITS (underlying) $18M $26.1M $10.6M Pre-tax costs largely sea freight and energy costs NPATS (underly
Slide 19: Strategic plan driving incremental value, innovation and premiumisation
Strategic plan driving incremental value, innovation and premiumisation …now representing over 35% of margin • Premiumisation of pillar brands represents 15% of revenue and 21% of margin, double the contribution from 2020 For personal use only • Global leadership in no-and-low category accounts for
Slide 20: Recruiting new consumers through innovation
Recruiting new consumers through innovation For personal use only Tempus One Not Guilty Mr Stubbs Tempus Two Gin Recruiting Gen Z / Zero-alc solution for Staycations, at Premiumisation, disruptive, Millennials younger generation home convenience entry into spirits 14
Slide 21: Progress in our ESG strategy
Progress in our environmental, social and governance (ESG) strategy Significant headway made across a range of initiatives • B Corp impact assessment submitted for global certification For personal use only • Total GHG emissions reduction of 6% since 2022, on a per unit basis • Reduced plastic by re
Slide 22: Market update: sales in line with expectations
Market update: sales in line with expectations Wine Australia Export Report shows exports down by 11% over prior year, AVG growing or maintaining share in all key geographies For personal use only +1pp Flat +9pp Flat +14pp (Asia) +24pp (last qtr) 16
Slide 23: Continuing to deliver against our strategic plan
Continuing to deliver against our strategic plan A strategic transaction is not required to support future profitability with strong business fundamentals Strategic direction Achieved For personal use only Drive the portfolio Increased pillar brand revenue and improved margin, expanded market offeri
Slide 24: $9M cost out from FY23 program in place
$9M cost out from FY23 program in place A focus on reducing controllable costs taking full affect in second half, ensuring AVG's earnings improve into FY24 • Sea freight costs decreasing For personal use only • Dry goods negotiations completed • Domestic logistics efficiencies • Corporate cost reduc
Slide 25: Australian Wine Industry
Australian Wine Industry For personal use only 19
Slide 26: Strategic Review
Strategic Review AVG is looking at all opportunities to drive better shareholder returns • AVG appointed E&P Corporate Advisory to undertake a strategic review For personal use only • Overview of industry • Current industry characterised by excess capacity, low margins and hyperinflation • AVG withi
Slide 27: Summary and outlook
Summary and outlook AVG remains profitable with a sustainable business model standing up against significant headwinds • Business fundamentals well placed for future For personal use only • Relentless pursuit of consumer-led innovation and premiumisation • Continued strategic investment in marketing
Slide 28: Formal Proceedings
For personal use only Formal Proceedings 22
Slide 29: Accounts
Accounts For personal use only To consider and receive the Financial Report, the Directors’ Report and the Auditor’s Report of the Company for the year ended 30 June 2023 23
Slide 30: Resolution: Re-election of Director – Peter Perrin
Resolution 1 Re-election of Director – Peter Perrin For personal use only To consider and if thought fit, pass the following resolution as an ordinary resolution: “That Peter Perrin be re-elected as a non- executive director of the Company.” 24
Slide 31: Resolution: Adoption of Remuneration Report
Resolution 2 Adoption of Remuneration Report For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That the Remuneration Report of the Company for the year ended 30 June 2023 be adopted” 25
Slide 32: Shareholder Questions
Shareholder Questions For personal use only 26
Slide 33: Close of Voting
For personal use only Close of Voting 27
Slide 34: Proxy Results
Proxy Results Item of Business Total Votes Lodged For Against Open For personal use only Re-election of a Director – Peter Perrin 160,295,182 158,913,146 561,587 820,449 99.13 0.35 0.52 Adoption of Remuneration Report 124,765,706 120,882,862 3,303,636 579,208 96.88 2.65 0.47 28
Slide 35: Thank You
For personal use only Thank You 29
Australian Vintage — Shareholder Meeting (November 2023) on 6ix