DGL – 2020 Full Year Results Presentation

FY20 Results
28 August 2020

Introduction to meeting.
Business Performance –2020 Year under review.
Investing for the Future.
DelegatOutlook.
Agenda

Record global case sales of 3,277,000.
9% higher than last year.
Record Operating NPAT of $60.8 million.
20% higher than last year.
Record cash flows from operations of $84.3 million.
42% higher than last year.
No1 New Zealand wine exporter to the World.
Performance Highlights
3

Case Sales and FX
Case Sales (000's)
Jun 2020
Actual
Jun 2019
Actual
% Change
vs 2019
UK, Ireland and Europe
1,101


896


23%
North America (USA and Canada)
1,438


1,332


8%
Australia, NZ and Asia Pacific
738


780


-5%
Total Cases
3,277


3,008


9%
Foreign Currency Rates
Jun 2020
Actual
Jun 2019
Actual
% Change
vs 2019
GB£
0.5025


0.5146


2%
AU$
0.9313


0.9320


0%
US$
0.6493


0.6774


4%
CA$
0.8648


0.8888


3%
4

Revenue Growth Analysis
*The financial statements for the year ended 30 June 2019 have been restated following the adoption of NZ IFRS 16: Leases on 1 July 2019. Refer to Note 1 of the financial statements.
5
NZ$ millions
Jun 2020
Actual
Jun 2019
Actual
Restated*
% Change
vs 2019
Sales Revenue296.8 269.4 10%
Revenue movements breakdown:
Volume9%
Value1%
Foreign Exchange2%
Country/Product Mix-1%

Operating Performance
NZ$ millions
Jun 2020
Actual
Jun 2019
Actual
Restated*
% Change
vs 2019
Sales Revenue296.8 269.4 10%
Operating Revenue302.9 278.0 9%
Operating Gross Profit151.3 138.4 9%
Operating Gross Margin50%50%
Expenses (excl Promotion and Marketing)(48.6) (45.9) -6%
Promotion and Marketing(7.5) (9.2) 18%
Operating EBIT95.2 83.3 14%
Operating EBIT % of Revenue31%30%
Interest and Tax(34.4) (32.5) -6%
Operating NPAT60.8 50.8 20%
Operating NPAT % of Revenue20%18%
Operating EBITDA116.8 103.8 13%
Operating EBITDA % of Revenue39%37%
*The financial statements for the year ended 30 June 2019 have been restated following the adoption of NZ IFRS 16: Leases on 1 July 2019. Refer to Note 1 of the financial statements.
6

Operating Profit Movement –Last Year
NZ$millions
7

Impact of ‘Fair Value’ Adjustments
*The financial statements for the year ended 30 June 2019 have been restated following the adoption of NZ IFRS 16: Leases on 1 July 2019. Refer to Note 1 of the financial statements.
NZ$ millions
Jun 2020
Actual
Jun 2019
Actual
Restated*
% Change
vs 2019
Operating NPAT
60.8


50.8


20%
Operating NPAT % of Revenue
20%
18%
Biological Produce (Grapes)
1
(0.7)


(4.2)


83%
Derivative Instruments
1.3


(1.5)


n/m
2
Total Fair Value Items
0.6


(5.7)


n/m
2
Taxation of NZ IFRS fair value items
(0.2)


1.7


n/m
2
Reinstatement of Building tax depreciation
2.9


-


100%
Fair Value Items after Tax
3.3


(4.0)


n/m
2
Reported NPAT
64.1


46.8


37%
1. Bi ol ogi ca l Produce (Gra pe s ) i s the di ffe re nce be twe e n ma rke t va l ue pa i d for gra pe s ve rs us the cos t to grow
gra pe s . The ha rve s t provi s i on i s re ve rs e d a nd onl y re cogni s e d whe n the fi ni s he d wi ne i s s ol d.
2. n/m me a ns not me a ni ngful .
8

Reported Profit Movement –Last Year
NZ$millions
9

Balance Sheet Summary
*The financial statements for the year ended 30 June 2019 have been restated following the adoption of NZ IFRS 16: Leases on 1 July 2019. Refer to Note 1 of the financial statements.
NZ$ millions
Jun 2020
Actual
Jun 2019
Actual
Restated*
% Change
vs 2019
Assets
Current Assets
203.0


199.0


2%
Non-current assets
601.7


591.2


2%
Total Assets
804.7


790.2


2%
Liabilities
Current Liabilities
46.7


46.2


1%
Lease Liability
79.5


82.0


-3%
Deferred Tax Liabilities
28.5


28.7


-1%
Net Debt
239.5


270.3


-11%
Other Non-current Liabilities
5.9


6.3


-6%
Total Liabilities
400.1


433.5


-8%
Equity
Shareholders' Equity
404.6


356.7


13%
Total Equity
404.6


356.7


13%
Total Liabilities and Equity
804.7


790.2


2%
10

Net Debt Movement
NZ$millions
11

Net Debt Overview
NZ$ millions
Jun 2020
Actual
Jun 2019
Actual
Restated*
% Change
vs 2019
Funding
Operating Cash Flow
84.3


59.6


42%
Net Debt
239.5


270.3


11%
Key Ratios
Operating Profit Measures
Interest Cover
8.82


6.72


31%
Return on Equity
1
17.7%
16.8%
5%
Return on Capital Employed
2
14.0%
12.5%
12%
Reported Profit Measures
Interest Cover
8.87


6.26


24%
Equity / (Equity + Net Debt) %
62.8%
56.9%
10%
Return on Equity
16.8%
13.7%
23%
Return on Capital Employed
18.4%
17.3%
6%
1. Return on Equi ty (Operati ng) excl udes al l fai r val ue i tems from both NPAT and Assets/Li abi l i ti es.
2. Return on Capi tal Empl oyed (Operati ng) excl udes al l fai r val ue i tems from both EBIT and
Assets/Li abi l i ti es.
*The financial statements for the year ended 30 June 2019 have been restated following the adoption of NZ IFRS 16: Leases on 1 July 2019. Refer to Note 1 of the financial statements.
12

Group Harvest:
-Exceptional quality across all three of our wine
regions
-38,129 tonnes, up 7% on 2019
2020 Harvest
13

Introduction to meeting.
Business Performance –2020 Year under review.
Investing for the Future.
DelegatOutlook.
Agenda

Investing in Growth –Capital Expenditure Update
2018: Includes vineyard and winery
developments in Hawke’s Bay, Marlborough
and Barossa Valley, and land acquisition in
New Zealand.
2019: Includes vineyard and winery
developments in Hawke’s Bay, Marlborough
and Barossa Valley.
2020: Includes vineyard and winery
developments in Hawke’s Bay, Marlborough
and Barossa Valley, and land acquisition in
New Zealand.
2021: Includes vineyard and winery
developments in Hawke’s Bay, Marlborough
and Barossa Valley, and land acquisition in
New Zealand.
0
10
20
30
40
50
60
2017
2018
2019
2020
2021
40
47
33
29
52
Million of $
15

Introduction to meeting.
Business Performance –2020 Year under review.
Investing for the Future.
DelegatOutlook.
Agenda

DelegatSales Growth 2018 -2023
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
201820192020202120222023
Thousands 9 Litre Cases
Case Sales (000s)
2020
Actual
2021
Forecast
2022
Projection
2023
Projection
Total Cases3,277 3,346 3,573 3,840
% Increase2%7%7%
17

FY21 Operating Profit Guidance
Based on prevailing exchange rates, the Group forecasts to achieve a
FY21 operating profit that is in the range of $60 to $65 million.
18

Thank you