DGL 2017 Annual Meeting of Shareholders – Presentation

ANNUAL
MEETING
5 December 2017

22
WELCOME
•Jim Delegat –Executive Chairman
•Graeme Lord –Managing Director
•Rose Delegat
•Robert Wilton
•Dr. Alan Jackson
•Shelley Cave
•Murray Annabell –Chief Financial
Officer
•John Freeman –Managing Director
Designate

33
AGENDA
•Executive Chairman’s address
•Managing Director’s address
•Shareholder questions and discussion
•Voting on resolutions of the meeting
•General business
3

44
EXECUTIVE CHAIRMAN’S ADDRESS –JIM DELEGAT
4

55
FY2017 –ANOTHER YEAR OF RECORD PERFORMANCE
•Record case sales of 2,656,000, up 10%.
•North America 12% case sales growth.
•Record operating NPAT of
$38.5 million.
•Record cash flow from operations of
$59.2 million.
•Fully imputed dividend of 13 cents per
share, up 8%.

66
INVESTING FOR GROWTH
•$40.5 million of capital expenditure invested in FY2017.
•$46.2 million of capital expenditure planned in FY2018.
•Vineyard development –Marlborough, Hawke’s Bay and Barossa Valley.
•Marlborough and Hawke’s Bay winery expansion.
•This capital investment supports the Group’s plan to grow sales by more than
1,000,000 cases to 3,685,000 cases by 2022.

77
VINEYARD DEVELOPMENT
7
•75 hectares in FY2017.
•230 hectares in FY2018.
•588 hectares of viticultural land to
be planted from FY2019 onwards.

88
CROWNTHORPE RESERVOIR
8

99
FUNDING GROWTH
•Funding growth through retained earnings and bank debt.
•Strong balance sheet.
•Shareholders’ equity $307.1 million.
•Net bank debt $278.0 million.
•Undrawn syndicated bank facilities $72.0 million.

10
ANOTHER YEAR OF RECORD
PERFORMANCE ON OUR JOURNEY TO
BUILD A LEADING GLOBAL
SUPER PREMIUM WINE COMPANY.
10

1111
MANAGING DIRECTOR’S ADDRESS –GRAEME LORD
11

1212
FY2017 -GLOBAL SALES PERFORMANCE
•Australia, New Zealand, Asia Pacific
785,000 cases, up 11%.
•North America 1,135,000 cases, up
12%.
•United Kingdom, Ireland and Europe
736,000 cases, up 6%.
12

131313
A WORLD OF ACCLAIM

1414
2017 VINTAGE
•New Zealand harvest 34,595 tonnes, up 4%.
•Barossa Valley harvest 2,760 tonnes, up 6%.
•Excellent quality in all regions.
•Inventories in place to achieve sales plans.
14

1515
SALES GROWTH FY2017 -FY2022
2,656
2,782
3,021
3,333
3,504
3,685
201720182019202020212022
Delegat Group Planned Sales Volume
(Thousands of 9 Litre cases)

1616
FORECAST FY2018
•On track to achieve full year sales growth goal.
•Full year operating NPAT forecast to be in line with consensus of $40.7
million.

1717
A WORLD OF ACHIEVEMENT
17
A WORLD OF ACHIEVEMENT

18
ANNUAL
MEETING
5 December 2017