Australian Vintage Ltd · ASX:AVG
Australian Vintage — Shareholder Meeting (November 2016)
45 slides from Australian Vintage's shareholder meeting presentation, Nov 23, 2016
Slide 1: Australian Vintage Limited Annual General Meeting
Australian Vintage Limited 23rd November 2016 Annual General Meeting For personal use only
Slide 2: Disclaimer
Australian Vintage Limited Annual General Meeting 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 subsidiaries, affiliates and include genera
Slide 3: Australian Vintage Limited Annual General Meeting
Australian Vintage Limited 23rd November 2016 Annual General Meeting For personal use only
Slide 4: Agenda
Agenda Annual General Meeting For personal use only 23rd November 2016 Performance Summary Richard Davis Business Update Neil McGuigan Formal Proceedings Richard Davis 4
Slide 5: Performance Summary
Annual General Meeting For personal use only Performance Summary Richard Davis 5
Slide 6: Your company
Your company Annual General Meeting For personal use only 23rd November 2016 One of Australia’s largest wine producers Crushes up to 110,000 tonnes a year. Sells 80 million litres of wine. 2,300 planted hectares in 11 vineyards that we either own or lease. Production facilities capable of pr
Slide 7: Highlights
Highlights Annual General Meeting For personal use only 23rd November 2016 • Net profit after tax and before one off items $7.2 million compared to $7.1 million prior year • One off cost of $9.2 million (after tax) to exit onerous vineyard lease • Net loss of $2.0 million after vineyard lease exit c
Slide 8: Highlights (cont.)
Highlights (cont.) Annual General Meeting For personal use only 23rd November 2016 • Low margin UK/Europe bulk sales (part of the UK/Europe segment) were down by $6.8 million. • Branded sales continue to grow with McGuigan, Nepenthe and Tempus Two sales up by 20%. For the 12 months to 30th June 2016
Slide 9: Business Results & Summary: Branded Sales
Business Results & Summary Annual General Meeting For personal use only 23rd November 2016 1. Branded Sales During the twelve month period to Sales of our three key brands have June 2016, total sales of the increased by 97% over the last five McGuigan brand grew 21%, years:- Nepenthe brand grew 18%
Slide 10: Business Results & Summary: Australasia / North America Packaged
Business Results & Summary (cont.) Annual General Meeting For personal use only 23rd November 2016 2. Australasia / North America Packaged Sales increased by $7.6 million to $106.7 million due mainly to increased sales of the McGuigan brand (up 21%) partially offset by cask sales which were down 20%
Slide 11: Business Results & Summary: UK / Europe
Business Results & Summary (cont.) Annual General Meeting For personal use only 23rd November 2016 3. UK / Europe Sales increased by 5% to $102.5 million due to the increased sales of the McGuigan brand (up 20%) partially offset by sales of lower margin bulk wine. Sales of bulk wine reduced by $6.8
Slide 12: Business Results & Summary: Other Segments and Financial Position
Business Results & Summary (cont.) Annual General Meeting For personal use only 23rd November 2016 4. Other Segments The cellar door contribution continues to grow with contribution up 10% to $1.6 million due to increased club and digital sales. Vineyard contribution is up $1.1 million due to increa
Slide 13: Future Net Benefit – One off Costs
Future Net Benefit – One off Costs Annual General Meeting For personal use only 23rd November 2016 Vineyard Lease Termination In November 2015 Australian Vintage Limited served notice on Belvino Investments to terminate the lease of the Del Rios vineyard situated in Victoria. The effective date of t
Slide 14: Australian Wine Industry
Australian Wine Industry Annual General Meeting For personal use only 23rd November 2016 In the 12 months to September 2016 the value of Australian wine exports increased by 10% to $2.2 billion and volume increased by 0.2% to 734 million litres. The average value of exports grew by 10% to $2.95 per
Slide 15: Australian Wine Industry (cont.)
Australian Wine Industry (cont.) Annual General Meeting For personal use only 23rd November 2016 The 2016 vintage crush was 1.8 million tonnes, a 6% increase on last year’s crush (WFA Vintage Report July 2016). This is approximately 100,000 tonnes above the five year average. The increased crush has
Slide 16: Outlook
Outlook Annual General Meeting For personal use only 23rd November 2016 1. AVL continues to transition the business from a bulk wine producer to a quality branded business. Over the last five years the sales of our three key brands have almost doubled and at the same time contribution from our cask
Slide 17: Outlook (cont.)
Outlook (cont.) Annual General Meeting For personal use only 23rd November 2016 6. Even allowing for the unfavourable GBP we believe that our cash flow from operating activities will significantly improve in 2017 due mainly to savings in grape purchases. 7. Whilst the UK will be a challenge, we cont
Slide 18: Business Review
Annual General Meeting For personal use only Business Review Neil McGuigan 18
Slide 19: Business Strategies
Business Strategies Annual General Meeting For personal use only 23rd November 2016 • Grow the export business • Increase branded sales • Focus on cost control 19
Slide 20: FY16 Scorecard
FY16 Scorecard Annual General Meeting For personal use only 23rd November 2016 • Grow the export business UK China Asia Canada USA Ireland Europe 20
Slide 21: FY16 Scorecard (cont.): Increase branded sales
FY16 Scorecard (cont.) Increase branded sales Annual General Meeting For personal use only 23rd November 2016 Domestically Internationally The McGuigan brand grew by 19% In the United Kingdom McGuigan is the 4th largest global wine brand by volume and the 5th Tempus Two enjoyed 5% growth largest
Slide 22: FY16 Scorecard (cont.): Focus on cost control
FY16 Scorecard (cont.) Focus on cost control Annual General Meeting For personal use only 23rd November 2016 • Continuing to review long term grape supply leases/contracts to reduce grape cost. • Investment in power reduction at Buronga Hill Winery (Solar Power) • Super Premium Barrel store • Storag
Slide 23: Solar Plant
Solar Plant Annual General Meeting For personal use only 23rd November 2016 23
Slide 24: Barrel Store
Barrel Store Annual General Meeting For personal use only 23rd November 2016 Thomas sending picture of storage 24
Slide 25: Steel Trellis
Steel Trellis Annual General Meeting For personal use only 23rd November 2016 25
Slide 26: Compost
Compost Annual General Meeting For personal use only 23rd November 2016 26
Slide 27: FY16 Scorecard (cont.): Creating new products
FY16 Scorecard (cont.) Creating new products for developing and emerging Annual General Meeting markets For personal use only 23rd November 2016 • Barossa Valley Wine Company • Frizzante Piccolo • The Shy Pig • Fruit Drop 27
Slide 28: Barossa Valley Wine Company
Barossa Valley Wine Company Annual General Meeting For personal use only 23rd November 2016 28
Slide 29: Frizzante Piccolo
Frizzante Piccolo Annual General Meeting For personal use only 23rd November 2016 200 ml 750 ml 29
Slide 30: The Shy Pig
The Shy Pig Annual General Meeting For personal use only 23rd November 2016 30
Slide 31: Fruit Drop
Fruit Drop Annual General Meeting For personal use only 23rd November 2016 31
Slide 32: Work in Progress: Wine Quality and Innovation
Work in Progress Annual General Meeting For personal use only 23rd November 2016 • Wine Quality and Innovation The Show results for the three key brands have been very pleasing again this year. Here are some of the highlights: McGuigan Tempus Two Nepenthe Trophies – 27 Trophies – 6 Trophies – 2 Gold
Slide 33: For personal use only
Annual General Meeting For personal use only 23rd November 2016 33
Slide 34: International Wine & Spirits Competition 2016 London
International Wine & Spirits Competition 2016 London Annual General Meeting For personal use only 23rd November 2016 McGuigan Bin 9000 McGuigan Handmade Semillon 2003 Shiraz 2007 GOLD Langhorne Creek OUTSTANDING GOLD 2016 OUTSTANDING 2016 34
Slide 35: Work in Progress (cont.)
Work in Progress (cont.) Annual General Meeting For personal use only 23rd November 2016 • Building relationships with all key retailers worldwide AVL relationships with key retailers in the UK and in Australia are stronger than ever. Working closely with our retail partners is essential to ensu
Slide 36: Examples of Branded Promotional Activities
Work in Progress (cont.) Examples of Branded Promotional Activities Annual General Meeting For personal use only 23rd November 2016 McGuigan Wines • A concerted focus and investment in growing brand awareness through the launch of a national advertising campaign - ‘Bring a McGuigan’ – in Australia a
Slide 37: Work in Progress (cont.)
Work in Progress (cont.) Annual General Meeting For personal use only 23rd November 2016 • Not being Fast Moving Consumable Goods i) Winemaker involvement in the trade and with customers ii) Wine and Food engagement * Lyndey Milan * John Torode • Signing of Free Trade Agreements (FTA) with the UK. 3
Slide 38: Industry Discussions: WET rebate changes
Work in Progress (cont.) Annual General Meeting For personal use only 23rd November 2016 • Industry Discussions – Wine Equalisation Tax (WET) rebate changes on bulk wine Rebatable wine: Packaged wine is wine that is packaged in a container not exceeding 5 litres in a form fit for retail sale. Bran
Slide 39: Summary
Summary Annual General Meeting For personal use only 23rd November 2016 • AVL has a very strong and experienced board that provide very clear strategies to management. • AVL continues to focus on cost base to ensure it is appropriate for the size of its business. • AVL’s branded business, exclusive
Slide 40: Formal Proceedings
Annual General Meeting For personal use only Formal Proceedings Richard Davis 40
Slide 41: Accounts
Accounts Annual General Meeting For personal use only 23rd November 2016 “To consider and receive the Financial Report, the Directors’ Report and the Auditor’s Report of the Company for the year ended 30 June 2016.” 41
Slide 42: Resolution – Re-election of a Director
Resolution 1 – Re-election of a Director Annual General Meeting For personal use only 23rd November 2016 To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That Perry Gunner is re-elected as a non-executive director of the Company.” 42
Slide 43: Resolution – Adoption of Remuneration Report
Resolution 2 – Adoption of Remuneration Report Annual General Meeting For personal use only 23rd November 2016 To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That the Remuneration Report of the Company for the year ended 30 June 2016 be adopted 43
Slide 44: Resolution – Grant of options to the CEO and Executive Director
Resolution 3 – Grant of options to the CEO and Executive Annual General Meeting Director, Neil McGuigan For personal use only 23rd November 2016 To consider and, if thought fit, to pass the following ordinary resolution: “That approval is given as required by the Corporations Act and Australian Stoc
Slide 45: For personal use only
Annual General Meeting For personal use only 23rd November 2016 45
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