FWL NZX Retail Investor Presentation March 2019

NZX Retail Investor Evening MARCH 2019

Agenda
About Foley Wines
Strategicrelationships
Toplinenumbers
Strategic priorities
Outlook
FOLEY WINES | NZX RETAIL INVESTOR EVENING

A collection of iconic wineries and
brands from New Zealand’s most
acclaimed wine regions
made by land
& hand
Linked by a common unrelenting purpose;
to make great wine that people love to drink
around the world – made by land & hand.
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To b e N e w Z e a l a n d ’ s m o s t
revered wine group
Our ambition
Through the ownership of iconic wineries in
New Zealand’s most acclaimed regions, inspiring
the most discerning retailers and restaurants
around the world.
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A strong track record of rejuvenating
and growing iconic New Zealand
wineries and brands
The journey
so far
2009Vavasour and Dashwood acquired
2011Te Kairanga acquired
2012Grove Mill acquired
2014Martinborough Vineyard acquired
2014Lighthouse Gin acquired
2018Joined NZX Main Board
2019Mt Difficulty acquired
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Martinborough
Vineyard
Martinborough
Te Kairanga
Martinborough
Vavasour
Awatere Valley, Marlborough
Grove Mill
Wairau Valley, Marlborough
Our wineries & distillery
Lighthouse Gin
Martinborough
Mt Difficulty
Central Otago
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Centralisedservices delivering cost
advantages, market access and a
competitive position internationally.
Enabling the wineries to focus on
creating amazing wine.
Our business
model
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Five exceptional artisan wineries and one craft distillery from three
acclaimed regions, managed from one point.
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Economies of scope
(plus economies of scale)
due to our focus on related
diversification.
This model
delivers
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Strategic relationships
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A far-reaching network with a strategic
focus on our New Zealand wineries
Foley Wines
USA
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All New Zealand winery brands are now represented by
Foley Wines USA, owned by Bill Foley and his family.
Access to over 150 sales personnel employed by the Foley
Group in the USA.
Two new dedicated personal committed to our New Zealand
portfolio are being added in 2019.
Foley Wines USA comprises of 17 wineries in the USA.

New Zealand’s largest alcohol
beverage company
Lion
New Zealand
Partnership
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Over 100 sales representatives selling our portfolio into
New Zealand’s on premise, grocery and traditional
channels.
53 directly managed on premise venues.
26 owned retail stores.
In 2018 Lion and Foley wines extended their strategic
partnership when Lion took a 3% shareholding in
Foley Wines.

Topline numbers
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Bottled sales revenue
Operating earnings
Export cases
Year ended June 18 results
Profit for period after tax
Operating cash flow
$38m +25.27%
$3.16m* +7%
327,000 dozen +10%
$2.18m* +52%
$7.2m +104.8%
* Adjusted for one-off costs associated with Kaikoura Earthquake
Dividend3 cents per share
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Bottled sales revenue
Operating earnings
Export cases
Continuous momentum
$21.1m +13.8%
Profit for period after tax
Operating cash flow
$2.387m +145.8%
210,000 dozen +46.8%
$1.672m +461%
$4.936m +17.2%
$38m +25.27%
$3.16m* +7%
327,000 dozen +10%
$2.18m* +52%
$7.2m +104.8%
Year ended June 18
Six months to December 18
* Adjusted for one-off costs associated with Kaikoura Earthquake
Dividend3 cents per share
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AustraliaUSA/Canada
UK/Europe
Rest of world
Year ended June 18
113 , 0 0 0 c a s e s
+66 %
Year ended June 18
122,000 cases
-17 %
Year ended June 18
73,000 cases
+14%
Year ended June 18
19,000 cases
+5%
Export case sales growth
FOLEY WINES | NZX RETAIL INVESTOR EVENING

AustraliaUSA/Canada
UK/Europe
Rest of world
Year ended June 18
113 , 0 0 0 c a s e s
+66 %
Six months to December 18
74 , 0 0 0 c a s e s
+45%
Year ended June 18
122,000 cases
-17 %
Six months to December 18
75,000 cases
+65%
Year ended June 18
73,000 cases
+14%
Six months to December 18
49,000 cases
+41%
Year ended June 18
19,000 cases
+5%
Six months to December 18
11 , 0 0 0 c a s e s
+0%
Export case sales growth
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New ZealandLong term brand and
margin building
New pricing and promotional strategy being implemented in
New Zealand with Lion.
Volumes reflect this disruption and are in line with expectations.
Margin per case from New Zealand sales is up by 100%.
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Year ended 30 Jun 18Six months to Dec 31 18
Domestic cases
144,000 dozen59,000 dozen
+ 57%- 25%

Our strategic
priorities
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Continuing to realiseour
premiumisationstrategy
Strategic
priority 1
Building brands people love underpinned by excellent
wine quality.
We have the wine quality to sell more at higher price points.
Investing in developing premium brands.
Lifting prices in selected markets.
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A ‘one stop shop’ portfolio of brands across price points and
regions delivering real value to our customers and distributors.
Our powerful portfolio gives us the ability to choose to work
with partners who will deliver our vision.
Strategic
priority 2
Leveraging the power of our
portfolio
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Strategic
priority 3
Nurturing strong, long term
relationships in key markets
We are a collaborative and agile par tner delivering real
value for our customers and distributors.
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Cementing our new Lion partnership
Strategic
priority 4
Implementing a new sales support structure in New Zealand
giving us access to premium distribution across all channels.
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Focus on process improvement and
delivering cost savings
Strategic
priority 5
Scaling up: increasing volume and Mt Difficulty acquisition.
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These strategic
priorities will
enable us to:
•Sell more
•Sell more of our premium brands
•Realise more value for our entry level brands
•Reduce costs
Increased returns for shareholders.
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Positive outlook on vintage,
volumes and earnings.
Outlook
Focused on doubling underlying earnings for full year
(taking into account Mt Difficulty costs and integration).
Our due diligence estimated a further $5-6m of EBITDA
in the first full year.
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GROVE MILL
SAUVIGNON BLANC 2018
Double Trophy Winner
CHAMPION
SAUVIGNON BLANC
Royal Easter Show
Wine Awards 2019
CHAMPION
SAUVIGNON BLANC
New Zealand International
Wine Show 2018

MARK TURNBULL | CEO
Mark@foleywines.co.nz
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