Slide 1: FY24 Results
ies DELEGAT FY24 Results 29 August 2024
Slide 2: Agenda
Agenda Summary Business Performance Financial Performance Priorities and Outlook 2
Slide 3: Summary
Summary
Slide 4: Our strategic goal is to build a leading global super premium wine company
OUR STRATEGIC GOAL IS TO BUILD ADELEGAT ESTABLISH LEADINGAS A GLOBAL LEADINGSUPER PREMIUM GLOBAL SUPER WINEWINE PREMIUM COMPANY. COMPANY. 4
Slide 5: Achieving the Delegat vision is based on excellence across key success factors
Achieving the Delegat vision is based on excellence across 4 key success factors WORLD F AMOUS SUPER PREMIUM brands quality E XC L US I V E GLOBAL supply distribution 5 5
Slide 6: FY24 Financial highlights
FY24 Financial highlights • Revenue of $371.8 million Up $4.6 million on last year (1%) • Global Case Sales of 3,614,000 Down 62,000 cases on last year (-2%) • Operating EBITDA of $128.5 million Up $8.1 million on last year (7%) • Operating NPAT of $59.7 million Up $0.4 million on last year (1%) • C
Slide 7: FY24 Operating highlights
FY24 Operating highlights • A solid sales performance, despite some industry headwinds, with Delegat gaining market share in most markets • Targeted price increases implemented in key markets and operating gross margin up 300bps • Over 75 million global consumers engaged with increased marketing inv
Slide 8: Business Performance
Business Performance
Slide 9: A long-term story of growth, especially in the key North America region
A long-term story of growth, especially in the key North America region Delegat Sales Volume by Region 5.9% CAGR 4,000 3,676 3,614 3,500 3,360 3,277 3,178 3,008 3,000 2,656 2,736 2,500 2,411 2,210 9LE (000's) 2,031 2,000 1,500 1,000 500 - FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 North
Slide 10: We are one of the world's most successful Super Premium wine brands
We are one of the world’s most successful Super Premium wine brands Global case sales of world's 10 largest premium wine brands, calendar year 2022 2023 Premium wine Volume Volume Growth brands (000s (000s 9LE) 9LE) 1 Josh Cellars Wine 5,771 6,538 13.3% 2 Apothic Wine 4,212 3,746 -11.1% 3 Oyster Bay
Slide 11: Oyster Bay remains the leading Sauvignon Blanc brand in the world
Oyster Bay remains the leading Sauvignon Blanc brand in the world NUMBER ONE WINE IN AUSTRALIA 1 NUMBER ONE PREMIUM SAUVIGNON BLANC IN NEW ZEALAND 2 NUMBER TWO PREMIUM SAUVIGNON BLANC IN THE USA 3 NUMBER TWO PREMIUM SAUVIGNON BLANC IN CANADA 4 NUMBER TWO PREMIUM SAUVIGNON BLANC IN THE UK 5 EL Source
Slide 12: Premium wine category continues to show growth in US
Premium wine category continues to show growth in US Comparing Wine Above and Below $10 US Market, March 2020 – June 2024 12 Source: IRI/Circana– Total US MULO, Still Wine
Slide 13: The US market remains a significant growth opportunity for NZ Wine and Oyster Bay
The US market remains a significant growth opportunity for NZ Wine and Oyster Bay Premium wine drinkers (Millions), 2023 2.5 12.4 45.4 2.1 5.5 10.3 0.6 2.2 5.3 0.8 2 3.7 0.5 0.2 0.9 0.4 0.2 0.6 0 10 20 30 40 50 60 Those who have bought OB in the past 3 months Those who have heard of OB Premium Wine
Slide 14: Delegat has outperformed the broader industry by both volume and value
Delegat has outperformed the broader industry by both volume and value Volume change, 000 cases, FY23 to FY24 % Change Case Sales (000's) FY23 FY24 vs FY23 New Zealand Wine Exports 34,858 30,913 -11% New Zealand Wine Packaged Exports 18,922 15,944 -16% Oyster Bay Exports 3,463 3,401 -2% Value change
Slide 15: Oyster Bay has significant share of the NZ premium wine category
Oyster Bay has significant share of the NZ premium wine category across its major markets, and continues to gain market share Oyster Bay Reported Market Share of NZ Premium – Calendar Years Country 2021 2022 2023 2021 v 2023 United States 13.6% 14.5% 14.8% +120pp United Kingdom 22.6% 22.8% 28.0% +54
Slide 16: Oyster Bay continues to win in the US market
Oyster Bay continues to win in the US market, gaining further distribution and expanding our Pinot Grigio sales • New Zealand is still the fastest growing country of origin in premium US wine. (1) Sauvignon Blanc is still the fastest growing wine varietal in America and consumers are switching from
Slide 17: Oyster Bay is the fastest selling top brand in US retail
Oyster Bay is the fastest selling top 20 brand in US retail Units/store/week • Multi-varietal displays, leveraging off OBSB 2.65 popularity 2.45 2.33 • Integrating campaigns 2.16 2.07 with consumer marketing program to 1.74 1.70 lift awareness & affinity 1.57 1.49 1.49 1.34 1.29 1.20 1.20 1.13 1.13
Slide 18: Supported by heavy investment in brand throughout the consumer journey
Supported by heavy investment in brand – both online and instore – throughout the consumer journey E-Commerce Suite Third-Party Out-Of-Home Reviews 72k OBSB Vivino Word of Oyster Bay reviews mouth Website Print Ads Integrated Shopper In-store Marketing Campaigns POS Consumer Integrated Social Commen
Slide 19: 2024 harvest light but exceptional quality
2024 harvest light but exceptional quality What else can we say • The 2024 harvest yield of 34,150 here about operating tonnes was down 25% from last highlights. I wonder if we year's harvest as a result of cooler also change out the spring growing conditions across photo to a different one all thre
Slide 20: Pleasing progress expanding the Group's ESG program
Pleasing progress expanding the Group's ESG program Delegat biggest Long Term Injury improver in Frequency Rate Forsyth Barr decreased by Carbon & 39% over the ESG ratings past year Barossa Valley Implemented solution Estate achieves for juice recovery and Sustainable treatment of liquid juice Wineg
Slide 21: Financial review
Financial review
Slide 22: Solid sales result despite retailers resetting inventory levels
Solid sales result despite retailers resetting inventory levels % Change Case Sales (000's) Jun 2024 Jun 2023 vs 2023 UK, Ireland and Europe 1,184 1,237 -4% North America (USA and Canada) 1,725 1,747 -1% Australia, NZ and Asia Pacific 705 692 2% Total Cases 3,614 3,676 -2% % Change Foreign Currency
Slide 23: Lower volumes offset by foreign exchange and price increases
Lower volumes offset by foreign exchange and price increases June 2024 June 2023 % Change NZ$ millions Actual Actual vs 2023 Sales Revenue 371.8 367.2 1% Sales movements breakdown: Volume -2% Value 3% Foreign Exchange 3% Price 1% Country/Product Mix -1% 23
Slide 24: Good growth in operating EBITDA
Good growth in operating EBITDA Jun 2024 Jun 2023 % Change NZ$ millions vs 2023 Sales Revenue 371.8 367.2 1% Operating Revenue 375.7 375.8 0% Operating Gross Profit 171.3 162.1 6% Operating Gross Margin 46% 43% Expenses (55.4) (54.1) -2% Promotion and Marketing (13.2) (11.2) -18% Operating EBIT 102.
Slide 25: Operating EBITDA Movement – Last Year
Operating EBITDA Movement – Last Year NZ $millions 25
Slide 26: Operating Profit Movement – Last Year
Operating Profit Movement – Last Year NZ $millions 26
Slide 27: Cost of Goods Sold flat over the past year
Cost of Goods Sold flat over the past year 60 50 COGS reduced 40 across production, Cost of Sales ($/Case) and packaging costs, however, is expected 30 to increase in FY25 as a result of the lower yielding 2024 vintage 20 10 0 FY22 FY23 FY24 FY25B 27
Slide 28: Low yielding 2024 harvest and tax legislation changes have impacted reported profit
Low yielding 2024 harvest and tax legislation changes have impacted reported profit Jun 2024 Jun 2023 % Change NZ$ millions vs 2023 Operating NPAT 59.7 59.3 1% Operating NPAT % of Revenue 16% 16% Biological Produce (Grapes) 1 (24.0) 2.1 n/m3 Derivative financial Instruments 2.7 5.6 -52% Total Fair V
Slide 29: Reported Profit Movement – Last Year
Reported Profit Movement – Last Year NZ $millions 70.0 $64.8m 60.0 $5.6m 50.0 ($17.1m) ($1.9m) 40.0 ($6.1m) $31.4m 30.0 ($13.0m) ($0.9m) 20.0 10.0 0.0 Jun 2023 Margin impact Trade and Net FX Interest Removal of Other Jun 2024 Actual Brand Impact Building Tax Actual Marketing Depreciation 29
Slide 30: Solid asset base of $1.1b supports Delegat long-term growth
Solid asset base of $1.1b supports Delegat long-term growth Jun 2024 Jun 2023 % Change NZ$ millions vs 2023 Assets Current Assets 302.9 296.1 2% Fixed Assets 811.4 764.2 6% Other Non-current Assets 1.6 3.0 -47% Total Assets 1,115.9 1,063.3 5% Liabilities Current Liabilities 40.7 58.1 -30% Lease Liab
Slide 31: Bank facilities support long term growth
Bank facilities support long term growth NZ $millions 31
Slide 32: Investing for growth – capital expenditure update
Investing for growth – capital expenditure update Capital expenditure NZD, FY22 to FY25B 120 106 2022: Includes vineyard and winery 100 developments in Hawke’s Bay, Marlborough and Barossa Valley. 2023: Includes vineyard and winery 80 72 developments in Hawke’s Bay, Marlborough and Barossa Valley, a
Slide 33: Key financial ratios
Key financial ratios Jun 2024 Jun 2023 % Change NZ$ millions vs 2023 Funding Operating Cash Flow 56.9 59.7 -5% Net Debt 360.1 319.4 13% Key Ratios Operating Profit Measures Interest Cover 5.19 6.59 -21% 1 Return on Equity 11.6% 12.4% -6% 2 Return on Capital Employed 10.8% 11.4% -5% Reported Profit M
Slide 34: Priorities & Outlook
Priorities & Outlook
Slide 35: Continued global growth with strong focus on profitability
Continued global growth with strong focus on profitability supported by ongoing brand and infrastructure investment FY25 Priorities Continued volume growth in US market and value growth in other markets supported by solid price increases Increased investment in consumer marketing and shopper marketi
Slide 36: Continued investment will support strong sales growth to 3.9m cases in FY27
Continued investment will support strong sales growth to 3.9m cases in FY27 9 Litre Cases Thousands, FY22 to FY27 36
Slide 37: FY25 Operating Profit Guidance
FY25 Operating Profit Guidance Based on prevailing exchange rates and market conditions, the Group forecasts to achieve an FY25 operating NPAT that is in the range of $55 - $60 million*. 37 37 * Operating NPAT is a non-GAAP measure that excludes NZ IFRS fair value items and any other one-off non-ope
Slide 38: Thank you
Thank you