DGL 2018 Annual Meeting of Shareholders – Presentation

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ANNUAL
MEETING

4 December 2018

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

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AGENDA
•Executive Chairman’s address
•Managing Director’s address
•Shareholder questions and discussion
•Voting on resolutions of the meeting
•General business
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EXECUTIVE CHAIRMAN’S ADDRESS – JIM DELEGAT
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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%.

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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 grow sales by more than 640,000 cases to 3,377,000
cases by FY2021.

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Oyster Bay Vineyard, Marlborough

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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.

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ANOTHER YEAR OF RECORD
PERFORMANCE ON OUR JOURNEY TO
BUILD A LEADING GLOBAL
SUPER PREMIUM WINE COMPANY.
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MANAGING DIRECTOR’S ADDRESS – JOHN FREEMAN
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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.
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Southern Cross Station, Melbourne

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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.
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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.
Population of USA premium wine drinkers (millions)
Population of USA premium wine drinkers who have bought Oyster Bay in the past 3 months (millions)
% who have bought Oyster Bay in the past 3 months (Base: all USA premium wine drinkers)
%
4%
34.9
2010
2012
2014
34.2
48.1
1.16
1.32
3%
5%
54.9
2.35
2016
6%
3.42
Premium
definition
$10+
$10+
$10+
$10+

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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.
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A WORLD OF ACCLAIM

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A WORLD OF ACHIEVEMENT
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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.
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SALES GROWTH FY2018 – FY2021
Delegat Group Planned Sales Volume
(Thousands of 9 Litre cases)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
FY2018 ActualFY2019 ForecastFY2020 ProjectionFY2021 Projection

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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.

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A WORLD OF ACHIEVEMENT
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WINNING ON THE WORLD STAGE

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ANNUAL
MEETING

4 December 2018