Foley Wines Ltd. · NZX:FWL
Foley Wines — Shareholder Meeting (November 2018)
29 slides from Foley Wines's shareholder meeting presentation, Nov 21, 2018
Slide 1: Annual General Meeting 2018
Annual General Meeting 2 0 1 8
Slide 2: Agenda
FOLEY WINES AGM 2018 Agenda Introduction Formalities CEO’s presentation Shareholder questions Resolutions Conduct of voting General business Meeting close 1
Slide 3: Introductions
FOLEY WINES AGM 2018 Introductions Mark Turnbull – Director and CEO Paul Brock – Director Tony Anselmi – Director Jane Trought – CFO 2
Slide 4: CEO's presentation
Annual General Meeting 2 0 1 8 | CEO’s presentation
Slide 5: 2018 Continuous momentum highlights
FOLEY WINES AGM 2018 | CEO’s Presentation 2018 Continuous momentum highlights Case sales Bottle sales Operating Mt. Difficulty Strategic 471,000 revenue cash flow Conditional partnership + 21% $38m +25.2% $7.2m offer accepted with Lion +104.8% announced 3
Slide 6: 2018 Results
FOLEY WINES AGM 2018 | CEO’s Presentation 2018 Results • Operating earnings (before revaluations) $2.8m vs $5m • Profit after tax for group $1.8m vs $3.06m • Bulk sales (9 litre equivalent cases) 102,000 vs 46,000 • Capex $2.12m (in line with previous years without earthquake influence) • Dividend o
Slide 7: Results adjusted for one-offs
FOLEY WINES AGM 2018 | CEO’s Presentation Results adjusted for one-offs • Operating earnings (before revaluations) $3.16m vs $2.96m +7% • Profit after tax for group $2.18m vs $1.43m +52% 5
Slide 8: Market overviews
FOLEY WINES AGM 2018 | CEO’s Presentation Market overviews New Zealand Australia USA/Canada UK/Europe Rest of 144,000 cases 113,000 cases 122,000 cases 73,000 cases world +57% +66 % -17% +14% 19,000 cases A period of Great growth Went backwards Continuing to +5% significant growth – we are building
Slide 9: Where have we come from
FOLEY WINES AGM 2018 Where have we come from
Slide 10: The journey so far
FOLEY WINES AGM 2018 | CEO’s Presentation The journey A strong track record of rejuvenating so far and growing iconic New Zealand wineries and brands 2009 2011 2012 2014 2014 2018 Vavasour and Te Kairanga Grove Mill Lighthouse Martinborough Mt. Difficulty Goldwater acquired acquired Gin acquired Vin
Slide 11: Our purpose
FOLEY WINES AGM 2018 | CEO’s Presentation Our purpose Making great wine that people love to drink around the world. 8
Slide 12: Our business model
FOLEY WINES AGM 2018 | CEO’s Presentation Our business Centralised services delivering cost model advantages, market access and a competitive position internationally. Enabling the wineries to focus on creating amazing wine. 9
Slide 13: Finance, sales, marketing, bottling, warehousing and logistics
FOLEY WINES AGM 2018 | CEO’s Presentation Finance, sales, marketing, bottling, warehousing and logistics H A N D C R A F T E D B A T C H D I S T I L L E D 10
Slide 14: This model delivers economies of scope
FOLEY WINES AGM 2018 | CEO’s Presentation This model Economies of scope delivers (plus economies of scale) due to our focus on related diversification. 11
Slide 15: Our strategic priorities
FOLEY WINES AGM 2018 Our strategic priorities
Slide 16: Strategic priority: Continuing to realise our premiumisation strategy
FOLEY WINES AGM 2018 | CEO’s Presentation Strategic Continuing to realise our priority: premiumisation strategy Building brands people love underpinned by excellent wine quality. We have the wine quality to sell more at higher price points. Investing in developing premium brands. Lifting prices in s
Slide 17: Strategic priority: Leveraging the power of our portfolio
FOLEY WINES AGM 2018 | CEO’s Presentation Strategic Leveraging the power of our priority: portfolio A ‘one stop shop’ portfolio of brands across price points and regions delivering real value to our customers and distributors. Our powerful portfolio gives us the ability to choose to work with partne
Slide 18: Strategic priority: Nurturing strong, long term relationships in key markets
FOLEY WINES AGM 2018 | CEO’s Presentation Strategic Nurturing strong, long term priority: relationships in key markets A collaborative and agile partner delivering real value for our customers and distributors. 14
Slide 19: Strategic priority: Cementing our new Lion partnership
FOLEY WINES AGM 2018 | CEO’s Presentation Strategic Cementing our new Lion partnership priority: Implementing a new sales support structure in New Zealand giving us access to premium distribution across all channels. 15
Slide 20: Strategic priority: Focus on process improvement and delivering cost savings
FOLEY WINES AGM 2018 | CEO’s Presentation Strategic Focus on process improvement priority: and delivering cost savings Scaling up: increasing volume and Mt. Difficulty acquisition. 16
Slide 21: These strategic priorities will enable us to:
FOLEY WINES AGM 2018 | CEO’s Presentation These strategic • Sell more priorities will • Sell more of our premium brands enable us to: • Realise more value for our entry level brands • Reduce costs Increased returns for Shareholders. 17
Slide 22: A strong start to 2019 - Q1 results
FOLEY WINES AGM 2018 | CEO’s Presentation A strong start • First quarter export shipments 93,000 cases – up 35% to 2019 • October Exports 57,000 cases - Q1 results – FFW record for monthly shipments • USA shipments up 100% for first four months • Price increases implemented in NZ, Australia and the
Slide 23: Mt. Difficulty update
FOLEY WINES AGM 2018 Mt. Difficulty update
Slide 24: Mt. Difficulty Update: Current status
FOLEY WINES AGM 2018 | Mt. Difficulty Update Current Has been recommended for approval status: by OIO and is with Ministers for final approval. Previously the Ministers raised issues – which we have responded to. 19
Slide 25: Ministerial Directive Letter - 28 November 2017
FOLEY WINES AGM 2018 | Mt. Difficulty Update Ministerial The Ministerial Directive on Directive Letter Sensitive Land has five high - 28 November 2017 relative factors: • Jobs • New technology • Increased Export Receipts • Increased processing of primary products • Oversight and participation by New
Slide 26: High relative factors and other factors
FOLEY WINES AGM 2018 | Mt. Difficulty Update High We will: relative Create 10 new jobs – represents a 67% increase in their current factors numbers. Increase exports by 61% over the next 5 years. Increase Grove Mill processing by 33%, equivalent of 83% of Mt. Difficulty’s current capacity. Continue
Slide 27: Shareholder questions
FOLEY WINES AGM 2018 Shareholder questions
Slide 28: Resolutions
FOLEY WINES AGM 2018 Resolutions 1. Auditor’s remuneration 2. Re-election of Tony Anselmi 3. Election of Paul Brock 4. Directors’ fees 5. Adoption of new constitution 22
Slide 29: General business
FOLEY WINES AGM 2018 General THANK YOU business