Slide 1: FY19 Results
DELEGAT CELEBRATING YET ANOTHER YEAR OF RECORD GROWTH. FY19 RESULTS 23 August 2019
Slide 2: Agenda
AGENDA Introduction to meeting. Business Performance – 2019 Year under review. Investing for the Future. Delegat Outlook. 2
Slide 3: Performance Highlights
PERFORMANCE HIGHLIGHTS Record global case sales of 3,008,000. 10% higher than last year. Record Operating NPAT of $51.4 million. 14% higher than last year. Strong cash flows from operations of $55.4 million. Dividend increased on strong operational performance and cash flows – 17.0 cents. 3
Slide 4: Case Sales and FX
CASE SALES AND FX Jun 2019 Jun 2018 % Change Case Sales (000's) Actual Actual vs 2018 UK, Ireland and Europe 896 687 30% North America (USA and Canada) 1,332 1,250 7% Australia, NZ and Asia Pacific 780 799 -2% Total Cases 3,008 2,736 10% Jun 2018 Jun 2019 % Change Foreign Currency Rates Actual Actua
Slide 5: Revenue Growth Analysis
REVENUE GROWTH ANALYSIS Jun 2018 Jun 2019 % Change NZ$ millions Actual Actual vs 2018 Restated* Operating Revenue 269.4 246.5 9% Revenue movements breakdown: Volume 10% Value -1% Foreign Exchange 2% Country/Product Mix -3% 5 *The financial statements for the year ended 30 June 2018 have been restate
Slide 6: Operating Performance
OPERATING PERFORMANCE Jun 2018 Jun 2019 % Change NZ$ millions Actual Actual vs 2018 Restated* Sales Revenue 269.4 246.5 9% Operating Revenue 278.0 255.8 9% Operating Gross Profit 139.1 130.3 7% Operating Gross Margin 50% 51% Operating Expenses (55.4) (55.8) 1% Operating EBIT 83.7 74.5 12% Operating
Slide 7: Operating Profit Movement – Last Year
OPERATING PROFIT MOVEMENT – LAST YEAR NZ $millions 54.0 $2.1m ($0.0m) 52.0 $6.6m $51.4m ($1.2m) 50.0 ($1.0m) 48.0 46.0 $44.9m 44.0 42.0 40.0 38.0 36.0 34.0 32.0 30.0 Jun 2018 Actual Margin impact Promotion costs Net FX Impact Interest Other Jun 2019 Actual 7
Slide 8: Impact of 'Fair Value' Adjustments
IMPACT OF ‘FAIR VALUE’ ADJUSTMENTS Jun 2019 Jun 2018 % Change NZ$ millions Actual Actual vs 2018 Operating NPAT 51.4 44.9 14% Operating NPAT % of Revenue 18% 18% Biological Produce (Grapes) 1 (4.2) 5.5 n/m2 Derivative Instruments (1.5) (2.9) 48% Total Fair Value Items (5.7) 2.6 n/m2 Less: Tax 1.7 (0
Slide 9: Reported Profit Movement – Last Year
REPORTED PROFIT MOVEMENT – LAST YEAR NZ $millions 52.0 $5.7m 50.0 48.0 $47.4m $46.8m ($2.6m) 46.0 ($1.2m) ($0.3m) 44.0 ($1.0m) 42.0 40.0 38.0 36.0 34.0 32.0 30.0 Jun 2018 Actual Margin impact Promotion costs Net FX Impact Interest Other Jun 2019 Actual 9
Slide 10: Balance Sheet Summary
BALANCE SHEET SUMMARY Jun 2019 Jun 2018 % Change NZ$ millions Actual Actual vs 2018 Assets Current Assets 199.0 190.1 5% Fixed Assets 529.5 514.5 3% Total Assets 728.5 704.6 3% Liabilities Current Liabilities 41.7 42.5 -2% Deferred Tax Liabilities 35.6 33.7 6% Net Debt 270.3 281.5 -4% Other Non-curr
Slide 11: Net Debt Movement
NET DEBT MOVEMENT NZ $millions 300.0 290.0 $281.5m 280.0 $15.2m $270.3m 270.0 ($3.6m) 260.0 $32.6m 250.0 240.0 230.0 $8.6m 220.0 ($64.0m) 210.0 200.0 190.0 180.0 June 2018 Cash from Working Capital Capex Dividend FX June 2019 Actual Operations Actual 11
Slide 12: Net Debt Overview
NET DEBT OVERVIEW Jun 2019 Jun 2018 % Change NZ$ millions Actual Actual vs 2018 Funding Operating Cash Flow 55.4 57.8 -4% Net Debt 270.3 281.5 4% Key Ratios Operating Profit Measures Interest Cover 6.98 6.23 12% 1 Return on Equity 16.0% 15.7% 2% Return on Capital Employed2 14.0% 13.2% 6% Reported Pr
Slide 13: 2019 Harvest
2019 HARVEST ◆ Group Harvest: ◆ - exceptional quality across all three of our wine regions ◆ - 35,500 tonnes, down 11% on 2018 13
Slide 14: Agenda
AGENDA Introduction to meeting. Business Performance – 2019 Year under review. Investing for the Future. Delegat Outlook. 14
Slide 15: Investing in Growth - Capital Expenditure Update
INVESTING IN GROWTH - CAPITAL EXPENDITURE UPDATE ◆ 2017: Includes vineyard and winery developments in Hawke’s Bay, Marlborough and Barossa Valley. 120 114 ◆ 2018: Includes vineyard and winery developments in Hawke’s Bay, 100 Marlborough and Barossa Valley, and Million of $ land acquisition in New Ze
Slide 16: Agenda
AGENDA Introduction to meeting. Business Performance – 2019 Year under review. Investing for the Future. Delegat Outlook. 16
Slide 17: Delegat Sales Growth 2017 - 2022
DELEGAT SALES GROWTH 2017 - 2022 4,000 3,500 Thousands 9 Litre Cases 3,000 2,500 2,000 1,500 1,000 500 - 2017 2018 2019 2020 2021 2022 2019 2020 2021 2022 Case Sales (000s) Actual Forecast Projection Projection Total Cases 3,008 3,240 3,419 3,651 % Increase 8% 6% 7% 17
Slide 18: FY20 Operating Profit Guidance
FY20 Operating Profit Guidance Based on prevailing exchange rates, the Group forecasts to achieve a FY20 operating profit that is in line with the FY19 record performance. 18
Slide 19: Thank you
DELEGAT Thank you