Delegat Group Limited · NZX:DGL
Delegat — Shareholder Meeting (December 2019)
27 slides from Delegat's shareholder meeting presentation, Dec 3, 2019
Slide 1: Annual Meeting
ANNUAL MEETING 3 December 2019 1
Slide 2: Welcome
WELCOME • Jim Delegat – Executive Chairman • John Freeman – Managing Director • Rose Delegat • Robert Wilton • Dr. Alan Jackson • Shelley Cave • Murray Annabell – Chief Financial Officer 2
Slide 3: Agenda
AGENDA • Executive Chairman’s address • Managing Director’s address • Shareholder questions and discussion • Voting on resolutions of the meeting • General business 3
Slide 4: Executive Chairman's Address – Jim Delegat
EXECUTIVE CHAIRMAN’S ADDRESS – JIM DELEGAT 4
Slide 5: FY2019 – Another Year of Record Performance
FY2019 – ANOTHER YEAR OF RECORD PERFORMANCE • Record case sales of 3,008,000, up 10%. • North America 7% case sales growth. • UK, Ireland & Europe 30% case sales growth. • Record operating NPAT of $51.4 million, up 14%. • Generated cash flows from operations of $55.4 million. • Fully imputed dividen
Slide 6: Investing for Growth
INVESTING FOR GROWTH • $33 million of capital expenditure invested in FY2019. • $44 million of capital expenditure planned in FY2020. • Vineyard development in New Zealand. • Marlborough and Hawke’s Bay winery expansion. • This capital investment supports the Group’s plan to grow sales by more than
Slide 7: Vineyard Development & Sustainability
VINEYARD DEVELOPMENT & SUSTAINABILITY Fault Lake, Oyster Bay Vineyard, Marlborough 7
Slide 8: Funding Growth
FUNDING GROWTH • Funding growth through retained earnings and bank debt. • Strong balance sheet. • Shareholders’ equity $374.5 million. • Net bank debt $270.3 million. • Undrawn syndicated bank facilities $59.7 million. 8
Slide 9: Another Year of Record Performance on Our Journey to Build a Leading Global Super Premium Wine Company
ANOTHER YEAR OF RECORD PERFORMANCE ON OUR JOURNEY TO BUILD A LEADING GLOBAL SUPER PREMIUM WINE COMPANY. 9
Slide 10: Managing Director's Address – John Freeman
MANAGING DIRECTOR’S ADDRESS – JOHN FREEMAN 10
Slide 11: FY2019 – Global Sales Performance
FY2019 – GLOBAL SALES PERFORMANCE Delegat Group Annual Case Sales 3,500 3,008 3,000 2,736 2,656 2,411 2,500 2,210 2,031 1,950 1,969 1,946 2,000 1,850 9Le (000's) 1,738 1,449 1,500 1,237 1,000 809 583 500 306 149 209 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 12: FY2019 – Global Sales Performance
FY2019 – GLOBAL SALES PERFORMANCE 12
Slide 13: FY2019 – Global Sales Performance
FY2019 – GLOBAL SALES PERFORMANCE • Australia, New Zealand, Asia Pacific 780,000 cases. • North America 1,332,000 cases, up 7%. • United Kingdom, Ireland and Europe 896,000 cases, up 30%. 13
Slide 14: FY2019 – Global Sales Performance
FY2019 – GLOBAL SALES PERFORMANCE • Australia, New Zealand, Asia Pacific 780,000 cases. • North America 1,332,000 cases, up 7%. • United Kingdom, Ireland and Europe 896,000 cases, up 30%. 14
Slide 15: Consumer Advertising
DELEGAT CONSUMER ADVERTISING
Slide 16: FY2019 – Global Sales Performance
FY2019 – GLOBAL SALES PERFORMANCE • Australia, New Zealand, Asia Pacific 780,000 cases. • North America 1,332,000 cases, up 7%. • United Kingdom, Ireland and Europe 896,000 cases, up 30%. 16
Slide 17: FY2019 – Global Sales Performance
FY2019 – GLOBAL SALES PERFORMANCE • Australia, New Zealand, Asia Pacific 780,000 cases. • North America 1,332,000 cases, up 7%. • United Kingdom, Ireland and Europe 896,000 cases, up 30%. 17
Slide 18: FY2019 – Global Sales Performance
FY2019 – GLOBAL SALES PERFORMANCE • Australia, New Zealand, Asia Pacific 780,000 cases. • North America 1,332,000 cases, up 7%. • United Kingdom, Ireland and Europe 896,000 cases, up 30%. 18
Slide 19: Oyster Bay Consumer Research
OYSTER BAY CONSUMER RESEARCH LIKES/INTERESTS • Typically 25-54 with an even gender balance Travel Involved • More likely to be tertiary educated, white-collar professionals working across sectors like Business and Finance, Management and Sales Premium retailers Tech-savvy • Most likely to be married
Slide 20: Oyster Bay Consumer Research – High Value Shoppers
OYSTER BAY CONSUMER RESEARCH – HIGH VALUE SHOPPERS Oyster Bay $24.10 $537 22 Shopper spend per annual buy trips trip rate (USA) Typical Wine $16.91 $126 7.5 Shopper spend per annual buy trips trip rate (USA) Source: Numerator Oyster Bay Insights, USA 2019 20
Slide 21: ‘Most
‘Most admired’ ‘Most trusted; and a ‘Blue Chip Wine Brand’ Oyster Bay is celebrated around the world and our reputation grows as aleading global Super Premium wine company. cet OYSCETBM §
Slide 22: Barossa Valley Estate Cellar Door and Gardens
BAROSSA VALLEY ESTATE CELLAR DOOR AND GARDENS 22
Slide 23: Delegat Group 2019 Vintage
DELEGAT GROUP 2019 VINTAGE • New Zealand harvest 35,500 tonnes, down 11% from the 2018 vintage • Australia harvest for Barossa Valley Estate 1,600 tonnes • Exceptional quality in all regions delivering highly expressive wines • Appropriate inventories in place to achieve future sales plans 18 23
Slide 24: Investing in Our People
DELEGAT INVESTING IN OUR PEOPLE
Slide 25: Sales Growth FY2020 – FY2022
SALES GROWTH FY2020 – FY2022 Delegat Group Planned Sales Volume (Thousands of 9 Litre cases) 4000 3500 3000 2500 2000 1500 1000 500 0 FY2019 Actual FY2020 Forecast FY2021 Projection FY2022 Projection 25
Slide 26: Forecast FY2020
FORECAST FY2020 • On track to achieve full year sales growth to 3.24 million cases. • Full year operating NPAT forecast to be in line with consensus of $52.4 million. 26
Slide 27: Annual Meeting
ANNUAL MEETING 3 December 2019 27