Australian Vintage Ltd · ASX:AVG
Australian Vintage — Shareholder Meeting (November 2024)
22 slides from Australian Vintage's shareholder meeting presentation, Nov 13, 2024
Slide 1: AVG AGM Addresses & Presentation
13 November 2024 ASX ANNOUNCEMENT AVG AGM ADDRESSES & PRESENTATION Australian Vintage Limited (ASX: AVG) will today address shareholders at its Annual General Meeting to be held as a hybrid meeting, commencing at 2.00pm Sydney Time. For personal use only Attached is a copy of the addresses to be del
Slide 2: Chairman's Address
For personal use only CHAIRMAN’S ADDRESS
Slide 3: Disclaimer
Disclaimer The presentation has been prepared by Australian Vintage Limited (ACN 052 179 932) (“AVG”) (including its subsidiaries, affiliates and associated companies) and provides general background information about AVG’s activities as at the date of this presentation. The information does not pur
Slide 4: AVG is a world-class consumer orientated business
AVG is a world-class consumer orientated business Leader in consumer-led wine innovation with 2/3rd sales export focused For personal use only Global leaders in dynamic no-and-low alcohol wine segment Trusted long-term relationships with growers, suppliers and customers Industry leading ESG credenti
Slide 5: Highly experienced senior management team setting culture of success
Highly experienced senior management team setting culture of success Craig Garvin Jeff Howlett Julian Dyer Chief Executive Officer General Manager – Asia Pacific Chief Operating Officer For personal use only • CEO of Australian Vintage from 2019 to May • 20+ years in the global wine and spirits indu
Slide 6: Strategic focus remains unchanged: Three key areas to restore value
Strategic focus remains unchanged: Three key areas to restore value For personal use only • Grow sales • Tightly managed costs Close the gap to net tangible assets and working capital ~ 60 cents per share • Achieve consistent, sustainable positive free cash flow 10
Slide 7: CEO's Address
For personal use only CEO’S ADDRESS
Slide 8: Industry state of play and how AVG is positioning for success
Industry state of play and how AVG is positioning for success External issues have created challenges AVG is taking active steps to enhance for the Australian wine industry its resilience and growth prospects For personal use only Supply chain dislocation Export market diversification Cost hyp
Slide 9: 2024 Highlights: Improved earnings despite challenging environment
2024 Highlights: Improved earnings despite challenging environment • Generating $261 million revenue, 25% growth in EBITS to $13.2 million For personal use only • Expanding footprint across Asia and the Americas following strong global demand, export accounting for 2/3 of total revenue • Global lead
Slide 10: Strategic plan creating a stronger foundation for the future
Strategic plan creating a stronger foundation for the future Branded sales growth Premiumisation strategy Innovation & brand growth Growth in no-and-low continues working delivering >1/3rd margin alc wine • Global For personal use only $M Branded Sales Sales $ CAGR • Innovation & brand growth from F
Slide 11: Strategic Plan: driving strong growth and cash performance
Strategic Plan: driving strong growth and cash performance • Target cashflow neutral in FY25 due to 70% of prior vintage grape payment in FY25 (in line with industry norms)* • +$10m targeted FCF in FY26 and +$20m in FCF and 8% ROCE For personal use only by FY27* • Continue to invest in brands & inno
Slide 12: Future growth from Pillar Brands, innovation and international expansion
Future growth will come from a combination of focusing on Brands in core markets, fast- tracking consumer-led innovation & accelerating international expansion Investing in Step change Accelerate Pillar Brands consumer led innovation international expansion • Investment in key brands and geographies
Slide 13: Summary
Summary • Experienced management team with track record / confidence to execute on strategy coupled with refreshed board For personal use only • A focus on revenue and gross margin growth through innovation, geography and brand mix • Large asset backing that will be leveraged into strong cash flow t
Slide 14: Proxy Results
Proxy Results Item of Business Total Votes For Against Open Lodged For personal use only Election of a Director – Margaret Zabel 114,882,892 112,508,953 367,520 2,006,419 97.93 0.32 1.75 Election of a Director – Michael Byrne 114,882,892 112,537,818 338,070 2,007,004 97.96 0.29 1.75 Election of a Di
Slide 15: Thank You
For personal use only Thank You 29
Slide 16: Chairman's Address – James Williamson
Chairman’s Address – James Williamson I am honoured to be your new Chairman. Like you, I am a shareholder in AVG. While I may not have held my shares as long as many of you, I am a significant and committed shareholder because I believe this is a good business. I say that as someone who has spent ov
Slide 17: For personal use only
Your new board of directors is closely aligned with shareholders' interests and brings significant global experience across beverages, logistics, financial markets, fast-moving consumer goods, marketing, and innovation. As you know, a key responsibility of the board is the appointment of the chief e
Slide 18: So let me be clear...this is not business as usual
So let me be clear...this is not business as usual at Australian Vintage. As I said earlier, the board and management are aligned with a single-minded focus on growing sales and tightly managing costs and working capital to achieve sustainable, consistent, positive cash flow. And we are moving with
Slide 19: Chief Executive Officer's Address – Craig Garvin
Chief Executive Officer’s Address – Craig Garvin Thank you, James, and hello, shareholders. After a six -month absence, it’s a privilege to return as your CEO. Today, I want to talk about our plan to restore and grow value at Australian Vintage. This has been a challenging year, but I’m energised by
Slide 20: Signs of Progress
Signs of Progress We’re already seeing positive momentum. We are continuing to gain market share in our main geographies of UK and Australia while at the same time expanding into North America, where sales are up 28% over the prior year. Since 2020, we have grown our brands at 4% a year. Over that t
Slide 21: For personal use only
• Driving global leadership in the no-and-low alcohol category. We have released some exciting new ranges during the year in Not Guilty and McGuigan Mid, on top of our existing range, and we will continue to use our strategically important assets to grow in this category. The strategy remains sound.
Slide 22: For personal use only
The actions already underway give us the confidence to target free cash flow generation of $20 million per annum by the end of financial year 2027 and a return of capital of 8%. Of course, these targets are subject to vintage, the global macroeconomic conditions we operate in, foreign exchange and c
Australian Vintage — Shareholder Meeting (November 2024) on 6ix