Australian Vintage Ltd · ASX:AVG
Australian Vintage — Shareholder Meeting (November 2019)
30 slides from Australian Vintage's shareholder meeting presentation, Nov 20, 2019
Slide 1: Annual General Meeting 20th November 2019
Australian Vintage Limited Annual General Meeting 20th November 2019 For personal use only
Slide 2: Disclaimer
Australian Vintage Limited Annual General Meeting Annual General Meeting 20th November 2019 For personal use only Disclaimer The presentation has been prepared by Australian Vintage Limited the industry, countries and markets in which AVG operate. They also (ACN 052 179 932) (“AVG”) (including its s
Slide 3: Annual General Meeting 20th November 2019
Australian Vintage Limited Annual General Meeting 20th November 2019 For personal use only
Slide 4: Agenda
Agenda Annual General Meeting 20th November 2019 For personal use only Performance Summary Richard Davis Business Review Neil McGuigan Formal Proceedings Richard Davis 4
Slide 5: Performance Summary
Annual General Meeting Annual General Meeting 20th November 2019 For personal use only Performance Summary Richard Davis 5
Slide 6: Your company
Your company Annual General Meeting 20th November 2019 For personal use only One of Australia’s largest wine producers Crushes up to 120,000 tonnes a year. Sells 80 million litres of wine. 2,400 planted hectares in 11 vineyards that we either own or lease. Production facilities capable of pr
Slide 7: Key Points
Key Points Annual General Meeting 20th November 2019 For personal use only • EBITS (Earnings before Interest, Tax and SGARA) up 30% to $21.7 million • Net Profit after Tax (NPAT) and before SGARA up 48% to $11.9 million • 2019 vintage conditions impacted result by negative $4.9 million compared to p
Slide 8: Key Points (cont.)
Key Points (cont.) Annual General Meeting 20th November 2019 For personal use only • AVL strategies remain unchanged: Grow export business Increase branded sales Focus on cost control 8
Slide 9: Business Results & Summary: Branded Sales
Business Results & Summary Annual General Meeting 20th November 2019 For personal use only 1. Branded Sales Total sales of our three key brands, McGuigan, Tempus Two and Nepenthe increased by 10%. These three products now represent 60% of all our sales. In the UK/Europe market McGuigan branded sales
Slide 10: Business Results & Summary: Australasia / North America Packaged
Business Results & Summary (cont.) Annual General Meeting 20th November 2019 For personal use only 2. Australasia / North America Packaged Sales up 8% on last year with most of the Sales ($000) EBIT ($000) FY19 FY18 FY19 FY18 increase coming from increased branded sales. Australia 78,105 73,906 4,76
Slide 11: Business Results & Summary: UK/Europe
Business Results & Summary (cont.) Annual General Meeting 20th November 2019 For personal use only 3. UK/Europe UK/Europe sales were up 15% on last year with the McGuigan Brand continuing to grow in all parts of the UK market. EBIT increased by 94% due to the ongoing improved sales mix. When compare
Slide 12: Business Results & Summary: Other Segments
Business Results & Summary (cont.) Annual General Meeting 20th November 2019 For personal use only 4. Other Segments • Cellar Door reported a 39% EBIT decline to $1.0 million due mainly to decreased visitor numbers in the Hunter Valley where our two key cellar doors are located. • Australasia/North
Slide 13: Investing to Drive Premiumisation and Operational Efficiency
Business Results & Summary (cont.) Annual General Meeting 20th November 2019 For personal use only 6. Investing to Drive Premiumisation and Operational Efficiency • Total capital spend for 3 years to June 2020 expected to be $47.6 million with a significant reduction in growth capital expected in FY
Slide 14: Australian Wine Industry (cont.)
Australian Wine Industry (cont.) Annual General Meeting 20th November 2019 For personal use only In the 12 months to September 2019 the value of Australian wine exports increased by 7% to $2.9 billion and volume decreased by 8% to 774 million litres. The volume decline was driven by a decrease of 52
Slide 15: Australian Wine Industry (cont.)
Australian Wine Industry (cont.) Annual General Meeting 20th November 2019 For personal use only Wine exports to China continues to lead growth with sales up 19% to $1.1 billion. China remains the largest market for wine sales and third by volume. Other key export markets: • UK export sales decrease
Slide 16: Australian Wine Industry (cont.)
Australian Wine Industry (cont.) Annual General Meeting 20th November 2019 For personal use only • The 2019 Vintage crush has been estimated at 1.73 million tonnes, a decrease of 3% on last year’s crush. (Wine Australia – National Vintage Report July 2019). • The crush in cool temperate regions decr
Slide 17: Outlook
Outlook Annual General Meeting 20th November 2019 For personal use only Our focus on developing a world class branded wine company with a With regards to Brexit, we have investigated the establishment of a clear objective on wine quality and improving our margin, continues. satellite office to servi
Slide 18: Business Review
Annual General Meeting Annual General Meeting 20th November 2019 For personal use only Business Review Neil McGuigan 18
Slide 19: Overview
Overview Annual General Meeting 20th November 2019 For personal use only • FY19 Business Review • FY19 Wine Show Performance and Achievements so far in FY20 • Capital Expenditure over the last 2 years and why • Turbo charging our branded Portfolio in FY20 • People and Performance 19
Slide 20: FY19 Business Review
FY19 Business Review … Annual General Meeting 20th November 2019 For personal use only • Profit up from $7.7 million to $8.1 million after a $3.5 million (after tax compared to FY18 actual) SGARA adjustment • Cashflow from Operating Activities positive $23.6 million • Revenue up $19.7 million to $26
Slide 21: Wine Show Performance for FY19
Wine Show Performance for FY19 … Annual General Meeting 20th November 2019 For personal use only McGuigan Tempus Two Nepenthe Barossa Valley Wine Company Trophies 26 4 3 2 Gold 93 44 37 4 Silver 167 74 64 7 Bronze 178 199 139 10 Total Awards 464 321 243 23 21
Slide 22: So far this year
So far this year … Annual General Meeting 20th November 2019 For personal use only Tempus Two * International Wine Challenge: Hunter Valley Semillon Trophy - 2014 Tempus Two Pewter Uno Semillon * Hong Kong International Wine and Spirits Competition: Trophy for the Best White Wine from Australia - 20
Slide 23: Capex Spend over FY18 / FY19
Capex Spend over FY18 / FY19 … Annual General Meeting 20th November 2019 For personal use only 1. Good Business Practice * Other Capital Purchases $7.7 m * Buronga Hill Premium Winery $4.3 m * Oak $1.7 m * IT Spend $0.7 m 2. Efficiency Gains * Solar Parks $ 2.1 m * Buronga Hill Centrifuges / Wide Bo
Slide 24: Turbo charging our branded Portfolio in FY20
Turbo charging our branded Portfolio in FY20 … New Products / Packaging upgrades / ATL Annual General Meeting 20th November 2019 For personal use only McGuigan Black Label Single Batch Founder’s Gift 24
Slide 25: McGuigan
McGuigan Annual General Meeting 20th November 2019 For personal use only Continuation of the “Bring a McGuigan” UK Prime-time Television / Sponsorship Campaign in Australia 25
Slide 26: Tempus Two
Tempus Two Annual General Meeting 20th November 2019 For personal use only Sparkling Packaging First advertising campaign Wine On Tap 26
Slide 27: Nepenthe
Nepenthe Annual General Meeting 20th November 2019 For personal use only 27
Slide 28: People and Performance
People and Performance … Annual General Meeting 20th November 2019 For personal use only Support Employee Capability Driving Engagement Health and Wellbeing 28
Slide 29: Thank you
Thank you … Annual General Meeting 20th November 2019 For personal use only 29
Slide 30: Annual General Meeting
Annual General Meeting Annual General Meeting 20th November 2019 For personal use only 30
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