Foley Wines Ltd. · NZX:FWL
Foley Wines — Shareholder Meeting (October 2024)
27 slides from Foley Wines's shareholder meeting presentation, Oct 18, 2024
Slide 1: Annual Shareholders Meeting 2024
Annual Shareholders Meeting 2024 1
Slide 2: Agenda
FOLEY WINES ASM 2024 ASM 2024 Agenda Introduction Formalities CEO’s presentation Shareholder questions Resolutions Conduct of voting General business Meeting close 2
Slide 3: Introductions
FOLEY WINES ASM 2024 ASM 2024 Introductions PAUL BROCK MARK TURNBULL ROB FOLEY TONY ANSELMI GRANT GRAHAM JANE TROUGHT Chairman Director and CEO Director Director Director CFO 3
Slide 4: CEO's annual results presentation
FOLEY WINES ASM 2024 Annual Shareholders Meeting 2024 CEO’s annual results presentation 4
Slide 5: 2024 Results
FOLEY WINES ASM 2024 PERFORMANCE OVERVIEW 2024 Results The company remained focused on selling its brand through its established channels and keeping its wines front of mind against a backdrop of a very challenging global economy and, at the same time, an oversupply of wine globally. 5
Slide 6: Continued premiumisation
FOLEY WINES ASM 2024 PERFORMANCE OVERVIEW Continued premiumisation Case Bottled sales Operating Reported profit sales revenue earnings after tax* 561,000 $62.5m $4.13m $0.47m - 4% + 0.3% - 60% - 93% Cases = 9L equivalents (i.e. 12x750ml bottles) * Excluding one-off tax adjustment 6
Slide 7: Bottled case sales
FOLEY WINES ASM 2024 MARKET OVERVIEWS Bottled case sales New Zealand Australia USA/Canada UK/Europe Rest of world 176,000 cases 81,000 cases 133,000 cases 133,000 cases 38,000 cases + 1% - 33% + 60% - 22% + 6% Total New Zealand packaged wine exports: down 21%, Foley Wines exports: down 5.8% 7
Slide 8: 2024 Results
FOLEY WINES ASM 2024 PERFORMANCE OVERVIEW 2024 Results Operating Cashflow $4.3m vs $10.3m Capex $5.8m vs $14m The Company completed a major upgrade of the Vavasour winery refrigeration, plus continued its replanting of underperforming vineyards. 8
Slide 9: Replanting vineyards
FOLEY WINES ASM 2024 INVESTING FOR THE FUTURE Replanting vineyards
Slide 10: 2024 Harvest
FOLEY WINES ASM 2024 PERFORMANCE OVERVIEW 2024 Harvest Total harvest 6,404 tonnes – down 21% on prior year. Martinborough and Marlborough experienced disruptive weather and cooler spring growing conditions that resulted in a region-wide reduction in yield for the 2023/2024 growing season. A warm, dr
Slide 11: Practical, tangible steps to safeguard our environment for future generations
FOLEY WINES ASM 2024 SUSTAINABILITY Practical, tangible steps to safeguard our environment for future generations RESTORING LOCAL HABITATS RECYCLED NEW ZEALAND GLASS INDUSTRY-LEADING WATER CONSERVATION SUSTAINABLE MATERIALS POWERED BY SOLAR SMALL FOOTPRINTS
Slide 12: Sustainability steps taken this year
FOLEY WINES ASM 2024 CONSTANT IMPROVEMENT Sustainability steps taken this year TRANSITION TO SUPER LIGHTWEIGHT BOTTLES ONGOING NATIVE REPLANTING PROGRAMME SOLAR EXPANSION • Major bottlings transitioning to new bottle over • Strong progress again this year with 2,000 • Currently exploring more solar
Slide 13: Strategy recap
FOLEY WINES ASM 2024 Strategy recap 13
Slide 14: Five exceptional wineries and one craft distillery from three acclaimed regions
FOLEY WINES ASM 2024 OUR UNIQUE MODEL Five exceptional wineries and one craft distillery from three acclaimed regions, managed from one point MA R TI N BO R O U G H MA R L BO R O U G H CE N TR A L O T A G O 14
Slide 15: Enables us to satisfy the most discerning retailers & restaurants
FOLEY WINES ASM 2024 OUR UNIQUE MODEL Enables us to satisfy the most discerning retailers & restaurants at home and around the world
Slide 16: Our long term strategic priorities remain the same
FOLEY WINES ASM 2024 OUR LONG TERM STRATEGIC PRIORITIES Our long term strategic priorities remain the same Continuing to Leveraging the Nurturing strong, realise our power of our long-term premiumisation portfolio relationships strategy 16
Slide 17: An outstanding awards season so far
FOLEY WINES ASM 2024 ANOTHER OUTS TANDING AWA R D S An outstanding SEASON awards season F O R F O L E Y W I N E S so far FOR FOLEY WINES Double Gold Medal Winners Gold Medal Winners Gold Medal Winners
Slide 18: Current trading environment and key priorities
FOLEY WINES ASM 2024 Current trading environment and key priorities 18
Slide 19: 12 months ago we discussed uncertain trading conditions
FOLEY WINES ASM 2024 12 months ago we discussed uncertain trading conditions Consumers grappling with high interest rates globally; wine is a discretionary spend for consumers. Anecdotal evidence indicated significant amounts of bulk wine on the market and downward pressure on net pricing. Further,
Slide 20: Progress against priorities set in 2023
FOLEY WINES ASM 2024 Progress against priorities set in 2023 1. US market. We acknowledged we need to do better and developed a plan to return this market to growth in the short term and provide a strong platform for the future. • We delivered 33% growth in this market 2. Working closely with our ke
Slide 21: Progress against priorities set in 2023
FOLEY WINES ASM 2024 Progress against priorities set in 2023 4. Establishing The Runholder as an icon in the region as part of our wine tourism strategy. • We welcomed over 30,000 visitors to The Runholder in the past 12 months 5. Seeking out new high quality routes to market. • We have established
Slide 22: Current trading environment
FOLEY WINES ASM 2024 FIRST QUARTER Current trading environment Solid start: Foley Wines export cases 110,000, up 48% vs LY. Compared to industry: down 11%* for first two months. Foley Wines New Zealand performance: 6% growth for portfolio Compared to -1.5% growth# for market in QTR ended 30.9.24. Ma
Slide 23: Key focus areas for 2024/25
FOLEY WINES ASM 2024 Key focus areas for 2024/25 Key focus is to reduce debt this financial year Manage capex prudently Sell through 2024 vintage in a timely manner Continued focus on seeking out and cementing new opportunities Continue to build momentum with The Runholder brand home
Slide 24: Shareholder questions
FOLEY WINES ASM 2024 Shareholder questions 24
Slide 25: Resolutions
FOLEY WINES ASM 2024 ASM 2024 Resolutions 1. Auditor’s remuneration 2. Re-election of Anthony Anselmi 3. Re-election of Paul Brock 25
Slide 26: General business
FOLEY WINES ASM 2024 General business THANK YOU 26
Slide 27: Local dining suggestions
FOLEY WINES ASM 2024 Local dining suggestions Looking for a spot for lunch? We encourage you to dine at one of Foley Hospitality Group’s restaurants nearby THE BRIT, BRITOMART SOMM, PRINCES WHARF 5 MINUTE WALK 5 MINUTE WALK ANDIAMO, JERVOIS RD JERVOIS STEAK HOUSE, JERVOIS RD SOUL, VIADUCT HARBOUR TY