Moa Group Limited: ASM 2019 Speeches and Presentation

24 September 2019


ANNUAL SHAREHOLDER MEETING SPEECHES


Attached are the Chair and CEO speeches and presentations to be given at Moa Groups Annual
Shareholder Meeting at Seafarers Building, Britomart Auckland today at 3pm 24th September 2019.

Chairman’s Speech – Geoff Ross

CEO Moa Brewing Company Speech – Stephen Smith

CEO Savor Group Limited Speech – Lucien Law

Moa Group Limited – Presentation Slides




For more information contact:
Geoff Ross
021 424219


About Moa Group Limited

Moa Group Limited (NZX: MOA) is a brewing and hospitality company owned by and based in New
Zealand. Its business is made of two segments: Moa Beverages, which brews and distributes Moa
branded craft beers and ciders and Moa Hospitality, which owns and operates restaurants and bars
in New Zealand following the acquisition of the Savor Group businesses in April 2019.

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Moa Group Limited
Annual Shareholders Meetings
September 24th, 2019 3pm Seafarers Building, Britomart

Chairman Speech – Geoff Ross

Welcome and Introductions (Slide 2)

Good Afternoon, I am Geoff Ross, Chairman of the Moa Group. Welcome all to what is our first AGM
following the successful acquisition of Savor Group. As a group we now have a combined brewing and
hospitality business – providing greater business scale, beverage volume, margin creation and ultimately
shareholder value. This is the first AGM post a step change that we believe the business greatly benefits
from.

Before we proceed with the meeting, I would like to cover a few points of housekeeping and safety.
Firstly, I would ask you to turn your mobile phones to silent. In the event of an emergency or if we need
to evacuate the building, please do so through the marked exits. In case of a medical emergency, the
venue’s staff are your first port of call. Thank you.

Today from Moa Group we have the Moa Board:

• Executive Directors and founders of Savor Group – Lucien Law and Paul Robinson;
• Non-Executive Director David Poole;
• Non-Executive Director and Chair of our ARC committee Craig Styris; and
• Independent Director Sheena Henderson.

Independent Director Rich Frank is based in the US and although part of board meetings and strategic
discussions is unable to be at the AGM today.

We also have key executives here today from Moa –CEO Stephen Smith and our new group CFO –
Deborah Grace, along with several of the Moa and Savor team members.

Myself, Directors and Executives look forward to discussing progress with you today, answering any
questions and then being available for informal discussion post the meeting – over a brew.

Today we will cover the key results of the prior year, when Moa was simply a brewing company. We will
then move onto the current year and our outlook. Although it has only been five and a half months since
we acquired Savor, we have a lot of developments to report on.

The formal business of the meeting will be to vote on resolutions relating to the:
• re-appointment of auditors;
• re-appointment of myself as a director; and
• amendment of Moa’s constitution in order to comply with the new NZX rules.

Then do join us for a snack and sampling of a brew – which we hope to be close to 4.00pm.

Quorum
The Company's constitution prescribes a quorum requirement of three or more shareholders. As you can
see, we have a quorum, so I declare the 2019 Annual Meeting of Moa Group to be open.

Proxies
Proxies have been appointed for the purposes of this meeting in respect of approximately 4.3 million
shares, representing over 5% of the total number of shares. I’d like to thank shareholders for their
participation in today’s meeting. My fellow directors and I intend to vote all discretionary proxies we have
received in favour of the Resolutions as set out in the Notice of Meeting.

Geoff Ross’ Chairman’s Speech (Slides 3 to 10)

We will start by looking at the last financial year which closed back on March 31st, which was the day
before settlement of the acquisition of Savor Group.

FY19 was another year of good growth for Moa. Our revenue increased from $10.8 million to $12.7 million,
or a growth rate of approximately 18% year on year.

In FY18 we also gained market share in the craft beer segment in the grocery channel, which is the key
channel that we measure. Moa’s share of the craft segment grew 27 % to the period of July this year,
compared to overall growth of 7%. So, we grew at 3.8 times the rate of the segment’s growth. We are a
clear number three in craft behind Lion’s Macs and DB’s Monteith’s and making good gains on them.

At an EBITDA level the gain over the prior year was modest. Especially so given last year we accounted for
some of the acquisition costs involved in the purchase of Savor.

Our view was that we needed much stronger steps toward profitability and it was this objective that lead
us toward a strategy to become involved in bars and restaurants.

Key Highlights (Slide 4)

Key highlights of last year included:
- A joint venture with Constellation Brands. Constellation are a large US based wine company. In
New Zealand they are the number three player in wine. As shown, we are the number three player
in craft beer. So, we have pooled our sales and distribution resource to give great reach and
frequency of sales calls. Formed in June last year – this has been a positive step for Moa.

- Hero presence in a key on-premise venue – Auckland Fish Market. The Auckland Fish Market was
re vamped and turned into 10 casual eateries with one master bar, called the Wreck. This was
created by Savor Group. Moa formed a commercial arrangement to be the exclusive craft beer
supplier at this large venue. It was this first venture together that led to bigger talks, and eventually
Moa’s acquisition of Savor

- Late in the year we also appointed a new CEO to Moa Beverages, Stephen Smith. Stephen comes
from a strong industry background in beverage – having been Director of Marketing at Lion for
many years, a member of their executive team and also holding senior sales and marketing
positions in Lion Australia. You will hear from Stephen soon.

Product Launches & Awards (Slide 5)

The year also had new product launches including putting our popular classic brews into cans. Cans are a
great option for a New Zealand lifestyle – lighter to carry, safer and easier to recycle. Furthermore; our
Beer Southern Alps White IPA was named best beer in New Zealand at the 2018 New Zealand Beer awards.
Sales and Distribution Model (Slide 6)

So yes; last year had a new sales and distribution model, our first foray into serious on-premise by
partnering with the Auckland Fish Market. But we needed something stronger. Something to provide a
real step change to the scale of the business and the journey to profitability. In short; we needed scale
and profitability - sooner.

We looked at several strategies to do this. We could have looked at acquiring other beer brands – a
horizontal strategy to gain more scale. However, this may not have provided the step we need in margin.
We looked at our current product mix and given we are the fastest growing craft beer brand within the
top five group – we are doing alright there. The strategy we chose is probably the oldest brewery strategy
in the book. One that goes back centuries to the UK where breweries and pubs were one of the same. This
vertical integration strategy is also starting to appear in Australia where some of the more successful craft
brewers also have their own bars. It is also great for building the brand story and sampling of new brews.
We saw first-hand the benefit to margin from our own Cellar Door in Blenheim where people can visit the
brewery and sample our beer.

For us though if we were to make a step change it needed to be more than just one bar. We needed to
partner with an on-premise group.

The Acquisition of Savor (Slide 7)

We were ideally searching for a group based in Auckland, given Auckland is the largest hospitality scene in
New Zealand. And a clear leader in Auckland hospitality was Savor Group. Savor, which was started by
Lucien and Paul not only has some of Auckland’s best venues, but also has skill sets which we viewed as
beneficial to our business. Strong brand and strategy backgrounds from Lucien and Paul respectively
would be a competitive advantage for us. So that is why we joined with Savor in April this year. And why
Lucien and Paul are such key people within the business going forward. Like you and I, Lucien and Paul are
also shareholders of our new group. We are all aligned in building more value for you, our shareholders.

The Savor Presence (Slide 8)

Here’s a look at the Savor map of Auckland. Not only great places for bars and restaurants – great places
for pouring Moa.

The Year Ahead (Slide 9)

Given the acquisition took place in Autumn this year we are still really cementing the right team in place.
A key appointment for us was a group CFO, to ensure strong operational efficiency and financial
stewardship. Deborah Grace, a kiwi returning from many years offshore joined us in mid-May. She has a
background in premium beverage brands having held various senior finance roles across William Grant &
Sons and Red Bull UK. Welcome Deb.

With this skill set in place we have the confidence to go on and either acquire more venues as in the case
with Non Solo Pizza or “NSP” or to create new venues ourselves – which we plan to do. And with these
venues, we will pour more Moa beverages, creating a compounding effect; more venues pouring more
Moa. We have made a great start.

What this all means for this year (Slide 10)

- Stronger Moa volume in the more profitable on-premise channel.
- Stronger Brand presence.
- Scale; that step change we are looking for. Which can be seen here as we move to over $40 m in
revenue this year.
- And most importantly; profitability at an EBITDA level. At the time of the Savor acquisition we said
to the market our target for the year was $3.6 million in EBITDA; and we are tracking to achieve
this.
Opportunities beyond this year (Slide 11)
- Moa is committed to leveraging the existing portfolio of hospitality brands to new locations within
New Zealand. We’ll combine a wider range of beer and cider styles to capture a bigger market and
look beyond beer and cider for growth. We want to put our name on our venues and will look for
further venue acquisitions if they are strategically relevant. And we’ll maximise our waterfront
locations as the kiwis try to retain the America’s Cup.
I would now like to introduce CEO of Moa Hospitality Brands, Lucien Law, and the CEO of Moa Beverage,
Stephen Smith, to outline some of their plans for the year.


Lucien Law’s CEO Speech – Savor Group Limited

Please refer to separate document

Stephen Smith’s CEO Speech – Moa Brewing Company Limited

Please refer to separate document


Back to Geoff Ross

Thank you, Stephen and Lucien, for your insights and informing the room of the role each business plays
in creating shareholder value. It really is an exciting time to be a Moa Hunter.

Questions (Slide 12)

At this point, we have an opportunity for Shareholders to ask any questions they have for the board and
myself. If you are not a shareholder, we are happy to answer your questions after the meeting closes.

Before we take it to the room, we have had two questions from our shareholders who could not attend
today.

First from Mark Fairbrother, wanting to know if any thought has been given to having a shareholders’
meeting update in Wellington sometime so that investors out of Auckland could meet Moa’s board and
management.

This is not something that Moa has thought of in the past; however, moving forward we will consider this
as a way to better engage with our shareholders and bring our brands to life.

Second set of questions are from Edward and Jennifer Sullivan: When will a Dividend be paid? Is the
company coming right? And why is the beer not in Koru club?

Hopefully from today’s speeches and our recent market update you have heard that the group is
expected to be EBITDA positive in FY20. So yes; the company is coming right. We do not believe we will
be in a position to pay dividends in FY20 but anticipate our loyal Moa Hunters see the value in our recent
business acquisitions. In reference to serving Moa in the Koru Club; we recently pitched to Air New
Zealand (who claim to support New Zealand businesses) to service Moa in both their aircrafts and their
Koru lounges. Having been through these pitches before we were sceptical of the decision-making
criteria but progressed with a combined Savor and Moa Beverage proposition which we believe no one
else could have offered. Ultimately, we believe it came down to margin, and we were not prepared to
lose money on such a deal.

We can now take questions from the Shareholders in the Room.


Questions (Slide 13)

Thank you for your questions and time this afternoon, we will now proceed with the formal part of our
ASM.

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Moa Group Limited
Annual Shareholders Meetings
September 24th, 2019 3pm Seafarers Building, Britomart


CEO Savor Group company Speech – Lucien Law

Good afternoon Shareholders and to all those in attendance today.

It’s been six months since Savor was acquired by Moa group, and we have had a productive six month
period.

Most importantly, trade in our current restaurants over this period has been where we wanted it to be,
but there have also been some clear highlights over this time which give us confidence about capitalising
on the Xmas season and summer months, as well as our overall growth in 2020.

I’ll just talk briefly about a few of the highlights in the past six months for Savor.

Ostro, which is our largest venue, has had the most significant refresh of its menu in five years. Led by
myself and Josh Emett, we believe the new menu keeps us in a good position to keep Ostro evolving and
at the top of its game.

We recently opened Tommy’s Champagne Bar, which is a conversion of Level 6 of the Seafarers Building
(one floor above us). We have worked with LVMH Moet Hennessy to create an elegant cocktail and
event space, which offers more varietals of Champagne by the glass than anyone else in town. We have
seen a steady growth of this space over the last three months as its reputation builds, which gives us
great confidence for Christmas and the summer months.

The Auckland Fish Market. After a successful opening of AFM in December we’re very happy with how
it’s tracking so far. We are just seeing the back of our first winter there, which has been solid and steady,
and we’re already seeing a major lift for Spring.

Sanford, our landlord at the Fish Market, have installed some fantastic permanent screens in time for the
Rugby World Cup, which will obviously also be well used in future for major sporting events. Namely the
Americas Cup, which we believe will be hugely successful for us given our proximity to the America’s cup
bases and the harbour.

Very pleasing for us are the sales of MOA at The Wreck, the bar at the Fishmarket which we own and
operate. We split the pourage with Asahi and have Asahi, Peroni, Estrella and Kingfisher on tap,
alongside 4 Moa taps.

Moa pours over 30% of the volume on tap there, showing it’s competing well with these international
brands.

The recent purchase of NSP in Parnell is something we’re excited about. NSP is a classic and iconic venue
and we’re confident about carrying on and building its fantastic reputation. We’ll be pouring Moa there
from the 1st of October alongside Peroni.

Other new ventures in our Growth Strategy are also coming to fruition, with Movida from Melbourne
opening soon and a Lobster Shack project we’ve been working on progressing well.

Movida is a very well established and awarded restaurant from Melbourne, where it has been running
for over 15 years. They currently operate 4 restaurants and we’re excited about bring authentic Spanish
tapas to Auckland. We believe there is a large gap in the market for this and we have a fantastic location
lined up at Auckland Fish Market - the last and best spot in the main building which opens out into Fish
Lane with indoor/outdoor seating and bar.

We’re also in the process of launching a new concept called Lobster & Tap. Earlier this year Paul
Robinson and I travelled to Canada and formed a partnership with a large and well-regarded Lobster
Packer. We’ll be bringing lobster into New Zealand from Canada, which lands in November.

We hope to open our first store this year. They are planned to be much more of a store experience than
a restaurant. We are looking at a few options for location for this, and that will be finalised later this
month.

The concept is a very simple product done extremely well.

We will be picking up on the trend of Lobster rolls... which, although they’ve been around for a while,
have seen a real explosion in places like New York and London recently. We believe through our
partnership we will be able to offer a very compelling price point and we’ll be pairing this with Moa Beer
– hence the name Lobster and Tap. We see this as being a good example of how Savor will add value to
Moa Group through its hospitality and food and beverage experience, to drive growth in Moa beverages.

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Moa Group Limited
Annual Shareholders Meetings
September 24th, 2019 3pm Seafarers Building, Britomart


CEO Moa Brewing Company Speech – Stephen Smith

Thanks Geoff and thanks to all those in attendance today.

There are two key themes to the Moa Brewing Company for the up and coming 12 months.

1. Positive margin with top line growth.
Margin is our single biggest focus in the business, and we may choose to sacrifice some volume growth to
achieve this, we will do this by;
a) Continuing to focus on driving better margins as volume grows. A key focus is on improving
mix. We have just installed a new canning line at our brewery in Marlborough which will push
out much improved margin 440ml cans. The first of which is a collaboration with Vogel’s which
you would have seen in Geoff’s presentation.
b) Adding taps at new and existing Savor venues over the next 12 months will also be supportive
to overall margin.
c) We have also undertaken a full supplier review and completed positive negotiations with most
to reduce our costs on our key input lines. This includes costs inputs like freight and packaging.
We have also put through price increases right across the trade. In some cases, this was the
first price rise in over two years.

2. Expansion
As our beer portfolio develops, we will look to develop ranges outside of craft to tackle larger and more
frequently shopped beer categories.

And finally, and in time we will also look to explore options beyond beer and cider that we know we can
successfully launch via our Savor bars and restaurants and into our leading retail partners.

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MOA GROUP LIMITED
Annual Shareholders Meeting
September 2019

WELCOME
Todays Agenda:
• Introductions.
• FY19 Review.
• FY20 Outlook.
• Questions from Shareholders.
• Formalities.
• Sampling of brews and food.

Moa Brewing - pre vertical
integration move into hospitality.
Moa itself:
• Revenue from $10.8m to $12.7m.
Growth of 17.6%
• Market Share gain to 10.1%
• EBITDA - small improvement
- includes acquisition costs.
No.3
Craft Player in
NZ market
+27.1%
Moa
(MAT TSM)
+7.1%
Premium Craft
(MAT TSM)
This Moa Flies: 3.8x Market Growth
(Nielsen, to July 2019)
Graph to come from SS
2019
FINANCIAL
YEAR
0.00%
4.00%
8.00%
2.00%
6.00%
10.00%
12.00%
% Val Share% Vol Share
YTD Moa % Vol & Value Share
(Craft Beer in Supermarkets)
8.57%
9.06%
9.88%
9.62%
10.45%
11.05%
201720182019

• New Sales Venture with
Constellation Brands - MoBev.
• New key On Premise venue -
Auckland Fish Market.
2019
FINANCIAL
YEAR

• New Product Launches -
Classic Cans, Big Sky APA,
Pelorus XPA.
• Moa Southern Alps White
IPA – won Best Beer in New
Zealand (Brewers Guild).
2019
FINANCIAL
YEAR

2020
BUILD UP
• Supermarkets in growth.
• Venture with Constellation
getting national reach
and efficiency.
• Auckland Fish Market showed
us the value of On Premise.
• Brewers partnering with bars
- the first version of ‘vertical
integration’ - Pourage, Brand
Presence, Margin.
• For On Premise scale we need
a large On Premise partner.

• Auckland is the leading city in
New Zealand Hospitality scene.
• Savor Group a leader
in Auckland.
• Skill set of Savor executives
key to both beverage and
Hospitality Brands.
2020
BUILD UP

• Cement new team.
• New Group CFO - Deborah Grace, ex
William Grant (May ‘19).
• New Brewing CEO - Stephen Smith,
ex Lion (May ‘19).
• More venues, pouring more beverages
= compounding effect.
• Creation of new venues within Savor.
• Acquisition of new venues.
2020
OUTLOOK

• Stronger volume AND margin.
• Stronger brand presence.
• Scale.
• Profitability.
• Revenue $40m plus.
• EBITDA $3.6m.
2020
OUTLOOK
0m
20m
40m
10m
30m
50m
15.9m13.9m13.5m40m
2017201820192020
(projected)
MOA REVENUE
32% CAGR

2021 OPPORTUNITIES TO EXPLORE
• Leverage of existing Hospitality Brands to
new locations in other New Zealand cities.
• Wider range of beer and cider styles to
capture bigger market.
• Beverages beyond Beer and Cider.
• Moa Centric Venues (Moa style bars).
• More Venue acquisitions - if strategically
relevant.
• Maximising America’s Cup next summer.

SHAREHOLDER
QUESTIONS

FORMALITIES
• Auditor Election.
• Director Re Election - Geoff Ross.
• Adoption of new NZX Rules.

THANK YOU
Beer tastings and discussion with
Directors and Executives.