Delegat Group Limited · NZX:DGL
Delegat — Shareholder Meeting (December 2018)
22 slides from Delegat's shareholder meeting presentation, Dec 4, 2018
Slide 1: Annual Meeting
ANNUAL MEETING 4 December 2018 1
Slide 2: Welcome
WELCOME • Jim Delegat – Executive Chairman • John Freeman – Managing Director • Rose Delegat • Robert Wilton • Dr. Alan Jackson • Shelley Cave • Murray Annabell – Chief Financial Officer 2
Slide 3: Agenda
AGENDA • Executive Chairman’s address • Managing Director’s address • Shareholder questions and discussion • Voting on resolutions of the meeting • General business 3
Slide 4: Executive Chairman's Address – Jim Delegat
EXECUTIVE CHAIRMAN’S ADDRESS – JIM DELEGAT 4
Slide 5: FY2018 – Another Year of Record Performance
FY2018 – ANOTHER YEAR OF RECORD PERFORMANCE • Record case sales of 2,736,000, up 3%. • North America 10% case sales growth. • Record operating NPAT of $44.9 million. • Generated cash flows from operations of $57.8 million. • Fully imputed dividend of 15 cents per share, up 15%. 5
Slide 6: Investing for Growth
INVESTING FOR GROWTH • $46 million of capital expenditure invested in FY2018. • $33 million of capital expenditure planned in FY2019. • Vineyard development in New Zealand and the Barossa Valley. • Marlborough and Hawke’s Bay winery expansion. • This capital investment supports the Group’s plan to g
Slide 7: Oyster Bay Vineyard, Marlborough
Oyster Bay Vineyard, Marlborough 7
Slide 8: Funding Growth
FUNDING GROWTH • Funding growth through retained earnings and bank debt. • Strong balance sheet. • Shareholders’ equity $343.2 million. • Net bank debt $281.5 million. • Undrawn syndicated bank facilities $68.5 million. 8
Slide 9: Another Year of Record Performance on Our Journey
ANOTHER YEAR OF RECORD PERFORMANCE ON OUR JOURNEY TO BUILD A LEADING GLOBAL SUPER PREMIUM WINE COMPANY. 9
Slide 10: Managing Director's Address – John Freeman
MANAGING DIRECTOR’S ADDRESS – JOHN FREEMAN 10
Slide 11: FY2018 – Global Sales Performance
FY2018 – GLOBAL SALES PERFORMANCE • Australia, New Zealand, Asia Pacific 799,000 cases, up 2%. • North America 1,250,000 cases, up 10%. • United Kingdom, Ireland and Europe 687,000 cases. 11
Slide 12: Southern Cross Station, Melbourne
Southern Cross Station, Melbourne 12
Slide 13: FY2018 – Global Sales Performance
FY2018 – GLOBAL SALES PERFORMANCE • Australia, New Zealand, Asia Pacific 799,000 cases, up 2%. • North America 1,250,000 cases, up 10%. • United Kingdom, Ireland and Europe 687,000 cases. 13
Slide 14: Oyster Bay Buyers in the United States
OYSTER BAY BUYERS IN THE UNITED STATES Oyster Bay purchase rate and the population of premium drinkers has increased. Therefore the population of Oyster Bay buyers has increased. 54.9 48.1 34.2 34.9 1.16 1.32 2.35 3.42 3% 4% 5% 6% 2010 2012 2014 2016 Premium $10+ $10+ $10+ $10+ definition Population
Slide 15: FY2018 – Global Sales Performance
FY2018 – GLOBAL SALES PERFORMANCE • Australia, New Zealand, Asia Pacific 799,000 cases, up 2%. • North America 1,250,000 cases, up 10%. • United Kingdom, Ireland and Europe 687,000 cases. 15
Slide 16: A World of Acclaim
A WORLD OF ACCLAIM a Forgery onion, Ba wed OYSTER BAY MARLBOROUGH BOTRYTISED RIESLING 2011 GOLD MEDAL Fe Of imagagsist ‘ Sot “oe Pig OYSTER BAY MARLBOROUGH PINOT NOIR 2015 DOUBLE GOLD MEDAL AND 95 POINTS (OYSTER BAY MARLBOROUGH (CHARDONNAY 2016 GOLD MEDAL AND 90 POINTS BAROSSA VALLEY ESTATE SHIRAZ 2
Slide 17: A World of Achievement
ONE OF THE O A BAROSSA VALLEYS GOLD POINTS WINE SPECTATOR MAGAZINE USA STANDARD
Slide 18: Delegat Group 2018 Vintage
DELEGAT GROUP 2018 VINTAGE • New Zealand harvest 38,012 tonnes, up 10%. • Australia harvest 2,047 tonnes. • Excellent quality in all regions. • Inventories in place to achieve sales plans. 18 18
Slide 19: Sales Growth FY2018 – FY2021
SALES GROWTH FY2018 – FY2021 Delegat Group Planned Sales Volume (Thousands of 9 Litre cases) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 FY2018 Actual FY2019 Forecast FY2020 Projection FY2021 Projection 19
Slide 20: Forecast FY2019
FORECAST FY2019 • On track to achieve full year sales growth to 2.945 million cases. • Full year operating NPAT forecast to be in line with consensus of $50.3 million. 20
Slide 21: Winning on the World Stage
WINNING ON THE WORLD STAGE A WORLD OF ACHIEVEMENT 21
Slide 22: Annual Meeting
ANNUAL MEETING 4 December 2018 22