Foley Wines 2019 ASM Presentation

Annual Shareholders Meeting 2 0 1 9
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FOLEY WINES ASM 2019
Introduction
Formalities
CEO’s presentation
Shareholder questions
Resolutions
Conduct of voting
General business
Meeting close
Agenda
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Paul Brock – Deputy Chairman
Mark Turnbull – Director and CEO
Tony Anselmi– Director
Grant Graham– Director
Jane Trought– CFO
Introductions
FOLEY WINES ASM 2019
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Annual Shareholders Meeting 2 0 1 9 | CEO’s annual results presentation
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+ Record operating profit
+Completion of Mt Difficulty purchase.
+ Long term distribution agreement with Lion NZ Ltd entered into.
A pivotal year
FOLEY WINES ASM 2019 | CEO’s Presentation
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Case sales
522,000
+ 11%
Bottled sales
revenue
$44m
+15.7%
Operating
earnings
$5.1m
+83.8%
Highlights
Export cases
404,000
+ 23.5%
Reported profit
after tax
$3.5m
+94.9%
Cases = 9L equivalents (e.g. 12x750ml bottles)
FOLEY WINES ASM 2019 | CEO’s Presentation
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From a pivotal year.

⏤Operating Cashflow
$6.4m vs $7.7m (significantly influenced by Mt Difficulty)
⏤Capex
$2.9m vs $2.1m
⏤Dividend
of 3 cents per share (fully imputed) maintained
⏤Bulk sales (9 litre equivalent cases)
55,000 vs 102,000 in line with growing demand for
our branded products.
2019 Results
FOLEY WINES ASM 2019 | CEO’s Presentation
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New Zealand
118,000 cases
-18%
In line with
expectations of
change in price
and new distributor.
Australia
138,000 cases
+22 %
Continued
momentum with
key strategic
relationships
developing.
USA/Canada
145,000 cases
+19%
Focusing on the
right opportunities
for our portfolio.
UK/Europe
97,000 cases
+33%
Continuing to
build traction
as our portfolio
gains attention.
Rest of world
24,000 cases
+26%
Opportunities
continue to arise
around the world,
particularly in Asia.
Market
overviews
FOLEY WINES ASM 2019 | CEO’s Presentation
Focused on market diversification.
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Completed January 3, 2019
Mt Difficulty
acquisition
FOLEY WINES ASM 2019 | CEO’s Presentation
Sales revenue of $6.262m at an average selling
price of $196 per case in the first six months.
A strategically important acquisition that will
deliver significant value to the Company.
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Seamless integration into Foley Wines:
Mt Difficulty
acquisition
FOLEY WINES ASM 2019 | CEO’s Presentation
Shipping Mt Difficulty wines from Foley Wines within
a week.
Mt Difficulty products benefitted from bottling and
production efficiencies in the first 3 months.
Financial systems integrated within first month.
Foley Wines has grown total sales of Mt Difficulty by
28% in the first four months of this year (vs same
period pre-purchase).
Focus on exports: Mt Difficulty exports 25% up for
first four months (vs same period pre-purchase), with
opportunities for further growth apparent.
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Strategy recap
FOLEY WINES ASM 2019
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Making great wine that people
love to drink around the world.
Our purpose
FOLEY WINES ASM 2019 | CEO’s Presentation
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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, satisfying
the most discerning retailers and restaurants
around the world.
FOLEY WINES ASM 2019 | CEO’s Presentation
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FOLEY WINES ASM 2019 | CEO’s Presentation
MARTINBOROUGH
MARLBOROUGHCENTRAL OTAGO
Five exceptional wineries and one craft distillery
from three acclaimed regions, managed from one point.
OUR POINT OF DIFFERENCE:
Our model
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MARTINBOROUGH

Significant progress on
our strategic priorities
FOLEY WINES ASM 2019
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Our long term strategic priorities
FOLEY WINES ASM 2019 | CEO’s Presentation
PREMIUMISATIONPORTFOLIO
RELATIONSHIPSDISTRIBUTION
+
++
Continuing to realise
our premiumisation
strategy
Leveraging the power
of our portfolio
Nurturing strong,
long term relationships
Building premium,
diversified distribution
platforms.
Investing in brands built
on real places and
people.
High quality
winemaking.
Sell more at higher
price points.
Cross-selling the
portfolio.
A ‘one stop shop’
portfolio of brands
across price points and
regions.
Delivering real value to
our customers and
distributors.
A collaborative and
agile partner delivering
real value for our
customers and
distributors.
Working with par tners
who can deliver our
ambition.
An efficient supply
chain for exports.
A sales support structure
in New Zealandgiving
us access to premium
distribution across all
channels.
Strong on-premise focus
in New Zealand.
Focus on geographical
diversification of sales.
Recap
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Continuing to realiseour
premiumisationstrategy
Strategic
priority one
progress:
Significant brand building activity in the past 12 months.
Decrease in bulk wine sales as demand for our branded
products grows.
FOLEY WINES ASM 2019 | CEO’s Presentation
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Continuing to realiseour
premiumisationstrategy
Strategic
priority one
progress:
Strong recognition of wine quality by influential writers
and competitions.
FOLEY WINES ASM 2019 | CEO’s Presentation
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Continuing to realiseour
premiumisationstrategy
Strategic
priority one
progress:
Repositioning of brand price points.
Net case realisation to December (the period prior
to the Mt Difficulty acquisition) was increased by
$10 per case in the New Zealand market.
FOLEY WINES ASM 2019 | CEO’s Presentation
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Our portfolio is delivering a total solution for
customers seeking premium partners who can
commit to long term supply arrangements.
Cross selling the broader portfolio into the right
existing channels.
Strategic
priority two
progress:
Leveraging the power of
our portfolio
FOLEY WINES ASM 2019 | CEO’s Presentation
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Strategic
priority three
progress:
Nurturing strong, long term
relationships in key markets
Major existing retailers coming to us for range
extensions, including core ranging across the portfolio.
Strong collaboration with these retailers to build rate
of sale momentum through the high quality distribution
that has been secured.
FOLEY WINES ASM 2019 | CEO’s Presentation
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Building a premium distribution
platform in New Zealand.
Strategic
priority four
progress:
Lion NZ depletions-out of Foley Wines products
up 78% for the first quarter vs year ago.
FOLEY WINES ASM 2019 | CEO’s Presentation
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17%
41%
4%
27%
-4%
7%
-6%
1%
-10%
0%
10%
20%
30%
40%
50%
FWLNZ
Building a premium distribution
platform in New Zealand.
Strategic
priority
four:
Foley brand portfolio with Lion is outperforming the market
in New Zealand.
FOLEY WINES ASM 2019 | CEO’s Presentation
Premium SB in NZ
($15.64 - $20.54)
Luxury PN in NZ
($25+)
Superior PN in NZ
($20.55 - $25)
Premium PG in NZ
($15.64 - $20.54)
Nielsen Data QTR to 29.9.19
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Outlook
FOLEY WINES ASM 2019
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Company progressing well toward
600,000 case forecast for 2020.
A record
month
Year to date case sales to October are 210,000 cases.
October was a record month with approximately
75,000 cases shipped.
Focus on increasing EBITDA margin.
Benchmarking against Treasury Wines Estates, our goal is
to at least match TWE EBITDA margin in 2020 (25.07%
for the year ended June 2018 – Wall Street Journal).
FOLEY WINES ASM 2019 | CEO’s Presentation
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2021 target.
Outlook continued
While the business will continue to face a number of uncertainties
around FX risk, unexpected changes in taxes and duties and
agricultural risk, the Directors believe that with the progress being
made, and as we continue to execute our strategy as outlined, an
operating profit before tax of $10m is achievable for the 12 months
ended 30 June 2021; effectively doubling our 2019 result.
FOLEY WINES ASM 2019 | CEO’s Presentation
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SEE THE VAVASOUR STORY HERE

Shareholder questions
FOLEY WINES ASM 2019
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1. Auditor’s remuneration
2.Re-election of Mark Turnbull
3.Election of Grant Graham
4. Adoption of new constitution
Resolutions
FOLEY WINES ASM 2019
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General business
THANK YOU
FOLEY WINES ASM 2019
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