Delegat Group Limited · NZX:DGL
Delegat — Shareholder Meeting (December 2017)
18 slides from Delegat's shareholder meeting presentation, Dec 5, 2017
Slide 1: Annual Meeting
ANNUAL MEETING 5 December 2017
Slide 2: Welcome
WELCOME • Jim Delegat – Executive Chairman • Graeme Lord – Managing Director • Rose Delegat • Robert Wilton • Dr. Alan Jackson • Shelley Cave • Murray Annabell – Chief Financial Officer • John Freeman – Managing Director Designate 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: FY2017 – Another Year of Record Performance
FY2017 – ANOTHER YEAR OF RECORD PERFORMANCE • Record case sales of 2,656,000, up 10%. • North America 12% case sales growth. • Record operating NPAT of $38.5 million. • Record cash flow from operations of $59.2 million. • Fully imputed dividend of 13 cents per share, up 8%. 5
Slide 6: Investing for Growth
INVESTING FOR GROWTH • $40.5 million of capital expenditure invested in FY2017. • $46.2 million of capital expenditure planned in FY2018. • Vineyard development – Marlborough, Hawke’s Bay and Barossa Valley. • Marlborough and Hawke’s Bay winery expansion. • This capital investment supports the Group
Slide 7: Vineyard Development
VINEYARD DEVELOPMENT • 75 hectares in FY2017. • 230 hectares in FY2018. • 588 hectares of viticultural land to be planted from FY2019 onwards. 7
Slide 8: Crownthorpe Reservoir
CROWNTHORPE RESERVOIR 8
Slide 9: Funding Growth
FUNDING GROWTH • Funding growth through retained earnings and bank debt. • Strong balance sheet. • Shareholders’ equity $307.1 million. • Net bank debt $278.0 million. • Undrawn syndicated bank facilities $72.0 million. 9
Slide 10: 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. 10
Slide 11: Managing Director's Address – Graeme Lord
MANAGING DIRECTOR’S ADDRESS – GRAEME LORD 11
Slide 12: FY2017 - Global Sales Performance
FY2017 - GLOBAL SALES PERFORMANCE • Australia, New Zealand, Asia Pacific 785,000 cases, up 11%. • North America 1,135,000 cases, up 12%. • United Kingdom, Ireland and Europe 736,000 cases, up 6%. 12
Slide 13: A World of Acclaim
A WORLD OF ACCLAIM 4 fx a : ‘ ye Delegat Crownthorpe Terraces Chardonnay 2014 GOLD MEDAL “OF or =, 07 suse NS “bp ee Oyster Bay Marlborough Sauvignon Blanc 2015 DOUBLE GOLD MEDAL AND 95 POINTS Delegat Awatere Valley Sauvignon Blanc 2015 GOLD MEDAL Barossa Valley Estate Cabernet Sauvignon 2014 GOLD M
Slide 14: 2017 Vintage
2017 VINTAGE • New Zealand harvest 34,595 tonnes, up 4%. • Barossa Valley harvest 2,760 tonnes, up 6%. • Excellent quality in all regions. • Inventories in place to achieve sales plans. 14 14
Slide 15: Sales Growth FY2017 - FY2022
SALES GROWTH FY2017 - FY2022 Delegat Group Planned Sales Volume (Thousands of 9 Litre cases) 3,685 3,504 3,333 3,021 2,782 2,656 2017 2018 2019 2020 2021 2022 15
Slide 16: Forecast FY2018
FORECAST FY2018 • On track to achieve full year sales growth goal. • Full year operating NPAT forecast to be in line with consensus of $40.7 million. 16
Slide 17: A World of Achievement
A WORLD OF ACHIEVEMENT A WORLD OF ACHIEVEMENT 17
Slide 18: Annual Meeting
ANNUAL MEETING 5 December 2017 18