Slide 1: FY17 Results
DELEGAT RES B August 20 ¥ ZEALAND
Slide 2: Agenda
AGENDA Introduction to meeting. Business Performance – 2017 Year under review. Investing for the Future. Delegat Outlook. 2
Slide 3: Performance Highlights
PERFORMANCE HIGHLIGHTS Record global case sales of 2,656,000. 10% higher than last year. Record Operating NPAT of $38.5 million. 6% higher than last year. Record harvest – 37,355 tonnes. Record cash flows from operations of $59.2 million. Dividend increased on strong operational performance and cash
Slide 4: Case Sales and FX
CASE SALES AND FX Jun 2017 Jun 2016 % Change Case Sales (000's) Actual Actual vs 2016 UK, Ireland and Europe 736 694 6% North America (USA and Canada) 1,135 1,012 12% Australia, NZ and Asia Pacific 785 705 11% Total Cases 2,656 2,411 10% Jun 2017 Jun 2016 % Change Foreign Currency Rates Actual Actua
Slide 5: Revenue Growth Analysis
REVENUE GROWTH ANALYSIS Jun 2017 Jun 2016 % Change NZ$ millions Actual Actual vs 2016 Operating Revenue 247.7 240.0 3% Revenue movements breakdown: Volume 10% Value -7% Foreign Exchange -4% Underlying Price/Product Mix -3% 5
Slide 6: Operating Performance
OPERATING PERFORMANCE Jun 2017 Jun 2016 % Change NZ$ millions Actual Actual vs 2016 Sales Revenue 247.7 240.0 3% Operating Revenue 251.3 242.7 4% Operating Gross Profit 134.0 125.7 7% Operating Gross Margin 53% 52% Operating Expenses (66.7) (65.4) -2% Operating EBIT 67.3 60.3 12% Operating EBIT % of
Slide 7: Operating Profit Movement – Last Year
OPERATING PROFIT MOVEMENT – LAST YEAR NZ $millions 60.0 $20.3m 56.0 52.0 48.0 44.0 ($12.9m) $0.0m 40.0 ($2.6m) $38.5m $36.2m ($2.5m) 36.0 32.0 28.0 24.0 20.0 Jun 2016 Actual Margin impact Promotion costs Net FX Impact Interest Other Jun 2017 Actual 7
Slide 8: Impact of 'Fair Value' Adjustments
IMPACT OF ‘FAIR VALUE’ ADJUSTMENTS Jun 2017 Jun 2016 % Change NZ$ millions Actual Actual vs 2016 Operating NPAT 38.5 36.2 6% Operating NPAT % of Sales 13% 13% Biological Produce (Grapes) 1 1.6 11.8 -87% Derivative Instruments 1.4 4.7 -71% Total Fair Value Items 3.0 16.5 82% Less: Tax (0.8) (4.6) 82%
Slide 9: Reported Profit Movement – Last Year
REPORTED PROFIT MOVEMENT – LAST YEAR NZ $millions 70.0 $13.0m 60.0 50.0 $48.1m ($12.9m) $3.8m $0.0m $40.7m 40.0 ($11.3m) 30.0 20.0 10.0 0.0 Jun 2016 Actual Margin impact Promotion costs Net FX Impact Interest Other Jun 2017 Actual 9
Slide 10: Balance Sheet Summary
BALANCE SHEET SUMMARY Jun 2017 Jun 2016 % Change NZ$ millions Actual Actual vs 2016 Assets Current Assets 171.4 178.6 -4% Fixed Assets 482.9 456.9 6% Total Assets 654.3 635.5 3% Liabilities Current Liabilities 34.3 36.9 -7% Deferred Tax Liabilities 31.1 28.8 8% Net Debt 278.0 282.7 -2% Other Non-cur
Slide 11: Net Debt Movement
NET DEBT MOVEMENT NZ $millions 290.0 $282.7m 280.0 $12.1m $1.0m $278.0m 270.0 $41.4m 260.0 250.0 240.0 230.0 220.0 ($54.7m) ($4.5m) 210.0 200.0 190.0 180.0 170.0 160.0 150.0 June 2016 Cash from Working Capital Capex Dividend FX June 2017 Actual Operations Actual 11
Slide 12: Net Debt Overview
NET DEBT OVERVIEW Jun 2017 Jun 2016 % Change NZ$ millions Actual Actual vs 2016 Funding Operating Cash Flow 59.2 42.5 39% Net Debt 278.0 282.7 2% Key Ratios Operating Profit Measures Interest Cover 5.14 6.26 -18% 1 Return on Equity 15.1% 15.6% -3% Return on Capital Employed 2 12.6% 12.7% -1% Reporte
Slide 13: 2017 Harvest
2017 HARVEST NZ Harvest was a record 34,595 tonnes: - delivered very good quality; - was 4% higher than last year. Barossa Valley Harvest was 2,760 tonnes: - one of the best of recent times; - was 6% higher than last year. 13
Slide 14: Agenda
AGENDA Introduction to meeting. Business Performance – 2017 Year under review. Investing for the Future. Delegat Outlook. 14
Slide 15: Investing in Growth - Capital Expenditure Update
INVESTING IN GROWTH - CAPITAL EXPENDITURE UPDATE 2015: Includes vineyard developments in Hawke’s Bay, Marlborough and Barossa Valley, construction of Hawke’s 120 114 Bay Winery, expansion of Marlborough winery. 100 2016: Includes vineyard developments 80 79 Million of $ in Hawke’s Bay, Marlborou
Slide 16: Agenda
AGENDA Introduction to meeting. Business Performance – 2017 Year under review. Investing for the Future. Delegat Outlook. 16
Slide 17: Delegat Sales Growth 2015 - 2022
DELEGAT SALES GROWTH 2015 - 2022 4000 3,685 3,504 3500 3,333 3,021 Thousands 9 Litre Cases 3000 2,782 2,656 2500 2,411 2,210 2000 1500 1000 500 0 2015 2016 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Case Sales (000's) Actual Forecast Projection Projection Projection Projection UK, I
Slide 18: FY18 Operating Profit Guidance
FY18 Operating Profit Guidance The Group faces risks in the form of exchange rate volatility which make it difficult to accurately forecast financial performance. Based on budget exchange rates, the Group forecasts a 2018 operating profit result at least in line with this year's record performance.
Slide 19: Thank you
DELEGAT Thank you