DGL 2019 Annual Meeting of Shareholders Presentation

1
ANNUAL
MEETING
3 December 2019

2
WELCOME
•Jim Delegat – Executive Chairman
•John Freeman – Managing Director
•Rose Delegat
•Robert Wilton
•Dr. Alan Jackson
•Shelley Cave
•Murray Annabell –Chief Financial Officer

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

4
EXECUTIVE CHAIRMAN’S ADDRESS – JIM DELEGAT
4

5
FY2019 – ANOTHER YEAR OF
RECORD PERFORMANCE
•Record case sales of 3,008,000, up 10%.
•North America 7% case sales growth.
•UK, Ireland & Europe 30% case sales
growth.
•Record operating NPAT of $51.4 million,
up 14%.
•Generated cash flows from operations of
$55.4 million.
•Fully imputed dividend of 17 cents per
share, up 13%.

6
INVESTING FOR GROWTH
•$33 million of capital expenditure invested in FY2019.
•$44 million of capital expenditure planned in FY2020.
•Vineyard development in New Zealand.
•Marlborough and Hawke’s Bay winery expansion.
•This capital investment supports the Group’s plan to grow sales by more than 643,000 cases to 3,651,000
cases by FY2022.

77
Fault Lake, Oyster Bay Vineyard, Marlborough
VINEYARD DEVELOPMENT & SUSTAINABILITY

8
FUNDING GROWTH
•Funding growth through retained earnings and bank debt.
•Strong balance sheet.
•Shareholders’ equity $374.5 million.
•Net bank debt $270.3 million.
•Undrawn syndicated bank facilities $59.7 million.

9
ANOTHER YEAR OF RECORD
PERFORMANCE ON OUR JOURNEY TO
BUILD A LEADING GLOBAL
SUPER PREMIUM WINE COMPANY.
9

10
MANAGING DIRECTOR’S ADDRESS – JOHN FREEMAN
10

11
FY2019 – GLOBAL SALES PERFORMANCE
11
149
209
306
583
809
1,237
1,449
1,738
1,950
1,969
1,850
1,946
2,031
2,210
2,411
2,656
2,736
3,008
500
1,000
1,500
2,000
2,500
3,000
3,500
200220032004200520062007200820092010201120122013201420152016201720182019
9Le (000's)
Delegat Group Annual Case Sales
Source: Delegat

12
FY2019 – GLOBAL SALES PERFORMANCE
12

13
FY2019 – GLOBAL SALES PERFORMANCE
•Australia, New Zealand, Asia Pacific 780,000
cases.
•North America 1,332,000 cases, up 7%.
•United Kingdom, Ireland and Europe 896,000
cases, up 30%.
13

14
FY2019 – GLOBAL SALES PERFORMANCE
•Australia, New Zealand, Asia Pacific 780,000
cases.
•North America 1,332,000 cases, up 7%.
•United Kingdom, Ireland and Europe 896,000
cases, up 30%.
14

15
CONSUMER ADVERTISING
15

16
FY2019 – GLOBAL SALES PERFORMANCE
•Australia, New Zealand, Asia Pacific 780,000
cases.
•North America 1,332,000 cases, up 7%.
•United Kingdom, Ireland and Europe 896,000
cases, up 30%.
16

17
FY2019 – GLOBAL SALES PERFORMANCE
•Australia, New Zealand, Asia Pacific 780,000
cases.
•North America 1,332,000 cases, up 7%.
•United Kingdom, Ireland and Europe 896,000
cases, up 30%.
17

18
FY2019 – GLOBAL SALES PERFORMANCE
•Australia, New Zealand, Asia Pacific 780,000
cases.
•North America 1,332,000 cases, up 7%.
•United Kingdom, Ireland and Europe 896,000
cases, up 30%.
18

19
OYSTER BAY CONSUMER RESEARCH
LIKES/INTERESTS
Travel
Involved
Tech-savvy
Home-owners
Premium retailers
Dine-out
Wine lovers
Professionals
•Typically 25-54 with an even gender balance
•More likely to be tertiary educated, white-collar
professionals working across sectors like Business and
Finance, Management and Sales
•Most likely to be married and enjoy other alcohol types
like champagne and gin
•More involved than the average premium wine consumer
Sources: 1. Wine Intelligence 2018
2. OB Social Media, Always on – Tilt Digital, 2019
3. New World Loyalty Data – Lab 360, 2019
4. Wine Intelligence BE & OB focus groups US and Australia, 2018

20
OYSTER BAY CONSUMER RESEARCH – HIGH VALUE SHOPPERS
22
trips
$24.10
spend per
trip
$537
annual buy
rate
7.5
trips
$16.91
spend per
trip
$126
annual buy
rate
Oyster Bay
Shopper
(USA)
Typical Wine
Shopper
(USA)
Source: Numerator Oyster Bay Insights, USA 2019

21

22
BAROSSA VALLEY ESTATE CELLAR DOOR AND GARDENS

23
DELEGAT GROUP 2019 VINTAGE
•New Zealand harvest 35,500 tonnes, down 11% from the 2018 vintage
•Australia harvest for Barossa Valley Estate 1,600 tonnes
•Exceptional quality in all regions delivering highly expressive wines
•Appropriate inventories in place to achieve future sales plans
18

24
INVESTING IN OUR PEOPLE

25
SALES GROWTH FY2020 – FY2022
Delegat Group Planned Sales Volume
(Thousands of 9 Litrecases)
0
500
1000
1500
2000
2500
3000
3500
4000
FY2019 ActualFY2020 ForecastFY2021 ProjectionFY2022 Projection

26
FORECAST FY2020
•On track to achieve full year sales growth to
3.24 million cases.
•Full year operating NPAT forecast to be in line
with consensus of $52.4 million.

27
ANNUAL
MEETING
3 December 2019