Australian Vintage Ltd · ASX:AVG
Australian Vintage — Shareholder Meeting (November 2010)
32 slides from Australian Vintage's shareholder meeting presentation, Nov 24, 2010
Slide 1: Annual General Meeting 24 November 2010
For personal use only ANNUAL GENERAL MEETING 24 NOVEMBER 2010 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: Today's Agenda
Today’s Agenda For personal use only Performance Summary Ian Ferrier Business Update Neil McGuigan Formal Proceedings Ian Ferrier 3
Slide 4: Annual General Meeting
For personal use only ANNUAL GENERAL MEETING 24 NOVEMBER 2010 4
Slide 5: Top Line Results: Branded sales and lower costs drive profit
Top Line Results: Branded sales and lower costs drive profit For personal use only 1. EBIT (before significant items) up 43% – EBIT up $7.1m to $23.6m 2. Net profit after tax (before significant items) up 89% – Net profit after tax up $3.8m to $8.1m 3. Positive Cash flow – Operating cash flow positi
Slide 6: FX a challenge
FX a challenge For personal use only AUD v GBP (last 5 years) AUD v USD (last 5 years) 6
Slide 7: Full year sales break down
Full year sales break down Full Year Sales Net Dollar Sales ($’000)* For personal use only 2008/09 2009/10 % Change Domestic Wine Branded Bottled 36,698 34,201 (7) Branded Cask 11,401 7,798 (32) Private Label – Bottled 363 151 (58) Private Label – Cask 16,858 21,430 27 65,320 63,580 (3) Export Wine
Slide 8: Continuing pressure on Australian industry but signs of balance
Continuing pressure on Australian industry but there are signs of moving to supply and demand balance Intake 2006 2007 2008 2009 2010 For personal use only Million Tonnes 1.9 1.4 1.8 1.7 1.5 Equivalent million litres 1,410 955 1,237 1,171 1,117 Sales (staggered by 1 year)* Domestic million litres 43
Slide 9: Australian Vintage is in a good position to meet industry challenges
Australian Vintage is in a good position to meet industry challenges • World class cost base For personal use only 9 Grower contracts reduced from 90KT in V2006 to 35KT in V2010 9 Sold/exited wineries and vineyards saving over $6m p.a. in cash costs. 9 2010 Operating expenses $5.3m or 12% below last
Slide 10: New CEO brings experience and passion to Australian Vintage
New CEO brings experience and passion to Australian Vintage : For personal use only Strategic focus is clear • Continue to drive branded sales; • Continue to control cash flow and expenditure; and • Take advantage of enhanced reputation: – Domestic and overseas awards – Quality wine, new and innovat
Slide 11: Outlook
Outlook For personal use only • Industry remains challenging and markets volatile – Oversupply exists but problem is reducing – Record high Australian dollar – Competition fierce across Australian and overseas markets • Budgeting to deliver positive NPAT growth in financial year 2011 • Foreign excha
Slide 12: Business Review
For personal use only BUSINESS REVIEW NEIL MCGUIGAN 12
Slide 13: Vision for the future is simple but will underpin our success
Vision for the future is simple but will underpin our success For personal use only • It’s all about: – Putting the “wine” back in the wine business. – Making the “wine” the hero and the business will follow. This is important with all facets of our business, including the branded business, private
Slide 14: A number of challenges but the outlook remains positive
A number of challenges but the outlook remains positive For personal use only • What we can’t change: – Foreign exchange rate – Global over production – Water availability from the Murray Darling basin • What we can change: – Building value in our existing brands – Evolving Australian wines styles –
Slide 15: Building value in our existing brands
Building value in our existing brands For personal use only • A significant number of brand initiatives have taken place: – Launch of Tempus Two Varietal Blanc de Blanc – Relaunch of the Tempus Two Varietal Range – Launch of Nepenthe Petraea Sauvignon Blanc (oak) – Launch of Nepenthe Sparkling Sauvi
Slide 16: Evolving our wine style
Evolving our wine style For personal use only • McGuigan ‘The Semillon Blanc’ launched in UK market • McGuigan Sparkling Pinot Gris launched domestically • Red wine portfolio • White wine portfolio • Low alcohol alternatives • The best is still to come…. 16
Slide 17: Over 21 trophies endorse wine quality
The quality of our wines has been endorsed over the last year with over 21 trophies For personal use only International Winemaker of the Year – International Wine & Spirit Competition (London) Australian Producer of the Year – International Wine & Spirit Competition (London) McGuigan International W
Slide 18: Communication focus on delivering awards success to trade and consumers
Our communication focus has been on delivering our awards success to trade and consumers For personal use only 18
Slide 19: Supported by credible support from key wine critics
Supported by credible support from our key wine critics For personal use only 19
Slide 20: Black Red is now the number selling branded red wine in Australia
Black Red is now the number 1 selling branded red wine in Australia For personal use only • Outdoor advertising campaign – 146 sites across NSW, QLD and VIC – Includes billboards on: • Tullamarine Freeway, from Melbourne Airport • Brisbane Airport Drive, Brisbane, • Canterbury Road, Bankstown • Paci
Slide 21: Significant brand success on McGuigan
Our focus has led to significant brand success on McGuigan (our largest wine brand) For personal use only McGuigan Brand Performance Net 09/10 Performance: Total Net Sales = $68.7m YOY Case Growth = +55% YOY Net Sales Growth = +36% 21
Slide 22: In summary
In summary For personal use only • AVL continues to review its cost base to ensure it is appropriate for the size of our business. • AVL’s branded business, private label, exclusive label business and contract winemaking services have the same level of quality commitment. • We have streamlined our o
Slide 23: Formal Proceedings
For personal use only FORMAL PROCEEDINGS IAN FERRIER 23
Slide 24: 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 2010.” 24
Slide 25: Resolution 1
Resolution 1: For personal use only • To consider and if thought fit, pass as an ordinary resolution: • “That Neil A McGuigan is elected as a director of the Company.” 25
Slide 26: Resolution 2
Resolution 2: For personal use only • To consider and if thought fit, pass as an ordinary resolution: • “That Perry R Gunner is re-elected as a director of the Company.” 26
Slide 27: Resolution 3
Resolution 3: For personal use only • To consider and if thought fit, pass as an ordinary resolution: • “That the Remuneration Report of the Company for the year ended 30 June 2010 be adopted.” 27
Slide 28: For personal use only
For personal use only 28
Slide 29: Proxy position Resolution 1
Proxy position Resolution 1: For personal use only • Resolution 1: • That Neil A McGuigan is elected as a director Total votes For Against Open lodged 68,905,780 67,546,504 562,432 796,844 98.02% .82% 1.16% 29
Slide 30: Proxy position Resolution 2
Proxy position Resolution 2: For personal use only • Resolution 2: • That Perry R Gunner is re-elected as a director Total votes For Against Open lodged 68,914,009 67,501,925 593,796 818,288 97.95% .86% 1.19% 30
Slide 31: Proxy position Resolution 3
Proxy position Resolution 3: For personal use only • Resolution 3: • That the Remuneration Report of the Company for the year ended 30 June 2010 be adopted Total votes For Against Open lodged 68,771,853 58,371,771 9,600,079 800,003 84.88% 13.96% 1.16% 31
Slide 32: For personal use only
For personal use only 32
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