Foley Family Wines (FFW) 2017 ASM Presentation

FOLEY FAMILY WINES
ANNUAL SHAREHOLDERS’ MEETING
09 NOVEMBER 2017
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING

1.2017 –SIGNIFICANT EVENTS
2.OVERVIEW OF RESULTS
3.2017 VINTAGE
4.OUR VISION, PURPOSE AND STRATEGY
5.2018 CHALLENGES
6.MOVE TO NZX MAIN BOARD
7.QUESTIONS
AGENDA
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING

SIGNIFICANT EVENTS 2017
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING
•7.8 Richter Culverden Earthquake on 14
th
November 2016 –caused
significant damage at Grove Mill
▪All tanks needed to be repaired or replaced
▪Race against time to be fixed in time for harvest
▪A lot of uncertainty in terms of grape intake
▪Tremendous job to be up and running in time
•Brexit
▪Full year of currency impact lead to 18% in revenue per case
reduction in the UK
▪This affect flowed directly to market contribution
•Large 2016 vintage
▪Pricing pressure on bulk wine, flowing onto private label market
and aggressive pricing

OVERVIEW OF RESULTS
Operating earnings (before revaluations) $5m vs 2016 $4.3m
Profit after tax for group $3.06m vs 2016 $4.96m
Case sales (9 litre equiv.) 389,000 vs 2016 422,000
Bulk sales (9 litre equiv.) 46,000 vs 2016 15,000
Net case realisation $69 vs 2016 $70
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING

OVERVIEW OF RESULTS
CASH FLOW
•Operating cash flow $3.5m vs 2016 $2.2 m
•Final dividend 3 cents per share (fully imputed) maintained
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING

OVERVIEW OF RESULTS
BALANCE SHEET
•Assets $128m vs 2016 $123m
•Bank debt $10m vs 2016 $11m
•Shareholders’ equity $91m vs 2016 $87m
➢Strong balance sheet to leverage
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING

OVERVIEW OF RESULTS
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING
CAPEX
2014 $2.7m
2015 $3.6m (warehouse $2.2m)
2016 $2.1m (includes new palletizer $.5m)
2017$1.7m (excludes earthquake repairs)
2018$1.8m (excludes barrel purchases, includes new wastewater at
Grove Mill $.7m)
2019Te Kairanga new barrel room (in scoping stage)

2017 VINTAGE
•5,527 tonnes vs 2016 6,954 tonnes
•20% down on 2016 / 4% up on 2015
•Challenging due to cool summer and late season’s rains
•Focus on quality to ensure production of world class wine
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING

OUR VISION, PURPOSE
AND STRATEGY
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING

OUR VISION
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING
To become New Zealand’s most revered wine group through the
ownership of iconic brands and wineries in New Zealand’s most
acclaimed wine regions

OUR PURPOSE
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING
To make great wine that people love to drink around the world –
delivering a portfolio of brands that would satisfy the needs of best
distributors, retailers, restaurants and consumers requiring premium
New Zealand wines

OUR STRATEGY
Decanter World Wine Awards
2017
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING
PRODUCE WORLD CLASS WINE
We are on the right track 2017:
•6 Trophies
•28 Gold Medals

OUR STRATEGY
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING
OTHER SUCCESSES
Lighthouse Gin is the first New Zealand Gin brand
to be chosen by the Craft Gin Club in the UK, and
was also featured as “Gin of the Month” in their
publication “Ginned”.
17,502 Bottles of Lighthouse Gin were shipped to
the Craft Gin Club.

OUR STRATEGY
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING
BE FAMOUS IN NEW ZEALAND
Focus on brand building –e.g. Launch of The Weekend Chef series
www.thesociety.co.nz
www.Facebook.com/foodwinesociety

OUR STRATEGY
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING
LEVERAGE OUR FOOD AND TOURISM ASSETS TO MAXIMISE OUR BRANDS
•Toast Martinborough Competition –Weekend at Wharekauhau Lodge
•Nourish Group
We want our brands to be enjoyed with great food

OUR STRATEGY
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING
DISTRIBUTORS WORLDWIDE
•Engagement with the best distributors in every market
•Use the power of the best wine portfolio in New Zealand to
leverage all of our brands
•Consolidate relationships to ensure we can manage them
efficiently and effectively

OUR STRATEGY
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING
ACQUISITIONS THAT STRENGTHEN OUR PORTFOLIO
•Mt Difficulty –iconic New Zealand brand which ticks all the boxes of
delivering our strategy

2018 CHALLENGES
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING
•Currency still volatile
•Markets very competitive for New Zealand Sauvignon Blanc –e.g.
Premium brands promoted at $9 in Australia
•Rehabilitation of our Martinborough vineyards
•Investment in brand building –major focus is to build our New
Zealand sales
•Most of our assets needed to be rebuilt –takes timeand money

MOVE TO NZX MAIN BOARD
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING
•Commenced discussions with NZX
•Goal is to complete this by June 2018
•Alton Jamieson resignation –we will be reviewing Board composition
in the context of the proposed move to NZX Main Board
•Mt Difficulty -discussions are ongoing and we will make an
announcement in due course

QUESTIONS?
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING

HOW CAN YOU HELP?
Buy the wines –great shareholder pricing
(email sales@ffw.co.nzfor details)
Tell people about the Foley Wine Club www.foleywineclub.co.nz
Like and share The Society on Facebook
www.facebook.com/foodwinesociety
FOLEY FAMILY WINES ANNUAL SHAREHOLDERS’ MEETING