Foley Wines 2022 ASM Presentation

AnnualShareholdersMeeting2022
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Introduction
Formalities
CEO’spresentation
Shareholderquestions
Resolutions
Conductofvoting
Generalbusiness
Meetingclose
ASM2022
Agenda
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FOLEY WINES ASM 2022

GRANTGRAHAM
Director
ASM2022
Introductions
FOLEY WINES ASM 2022
BILLFOLEY
Chairman
TONYANSELMI
Director
MARKTURNBULL
DirectorandCEO
PAULBROCK
DeputyChairman
JANETROUGHT
CFO
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AnnualShareholdersMeeting2022
CEO’sannualresultspresentation
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FOLEY WINES ASM 2022

PERFORMANCEOVERVIEW
2022Results
Strong result achieved against a poor 2021 vintage,
continued disruption due to Covid, labourshortages and
logistical issues.
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FOLEY WINES ASM 2022

Casesales
525,000
-7%
Bottledsales
revenue
$55m
+2.8%
Operating
earnings
$7.8m
-3.1%
Reported profit
aftertax
$6.2m
+60.3%
Cases=9Lequivalents(i.e.12x750ml bottles)
PERFORMANCEHIGHLIGHTS
Continuedpremiumisation
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FOLEY WINES ASM 2022

PERFORMANCEHIGHLIGHTS
2022Results
OperatingCashflow$7.6mvs$7.2m
Capex$6.2m vs $5.6m excluding Zebra purchase
Zebra Bendigo Vineyard $6.3m (bank financed)
Dividendof4centspershare(fullyimputed)
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FOLEY WINES ASM 2022

NewZealand
148,000cases
-13%
Australia
100,000cases
-26%
USA/Canada
100,000cases
-21%
UK/Europe
139,000cases
+40%
Restofworld
38,000cases
+12%
MARKETOVERVIEWS
Bottledcasesales
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FOLEY WINES ASM 2022

Premiumisationstrategy insulated business from the effects of
lower inventories with a higher cost.
Focus on premium brands and their routes to market resulted
in trade-offs.
Navigating through a poor 2021 harvest
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FOLEY WINES ASM 2022
PERFORMANCEHIGHLIGHTS

PERFORMANCEHIGHLIGHTS
2022Harvest
Totalharvest9,203tonnes–up65%onprioryear.
Outstanding result given adverse weather conditions heading
into harvest, along with major resource issues due to Covid.
Notwithstanding these difficult conditions the team produced
some outstanding wines.
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FOLEY WINES ASM 2022

PERFORMANCE HIGHLIGHTS
A spectacular
awards season
FOLEY WINES ASM 2022
Gold MedalWinners
CHAMPION
“It’s the challenging vintages that
reveal great winemaking teams.”
TrophyWinners

Strategyrecap
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FOLEY WINES ASM 2022

OURPURPOSE
Makinggreatwinethatpeople lovetodrink
aroundtheworld
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FOLEY WINES ASM 2022

OURAMBITION
Tosatisfy the most discerning retailers and
restaurants at home and around the world
Throughtheownershipoficonic
wineries inNewZealand’smost
acclaimedregions
FOLEY WINES ASM 2022

OURMODEL
Fiveexceptionalwineriesandonecraft
distillery fromthreeacclaimedregions,
managedfromonepoint
MARLBOROUGH
CENTRALOTAGOMARTINBOROUGH
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FOLEY WINES ASM 2022

Investinginbrandsbuiltonrealplacesandpeople.
Highqualitywinemaking.
Sellingmoreat higherpricepoints.
OURLONGTERMSTRATEGICPRIORITIES
Continuingtorealise ourpremiumisation
strategy
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FOLEY WINES ASM 2022

OURLONGTERMSTRATEGICPRIORITIES
Leveragingthepowerofourportfolio
Cross-sellingtheportfolio.
A‘onestop shop’ portfolioof brands acrosspricepoints and regions.
Deliveringrealvaluetoourcustomersanddistributors.
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FOLEY WINES ASM 2022

OURLONGTERMSTRATEGICPRIORITIES
Nurturingstrong,long-termrelationships
Acollaborativeandagilepartnerdeliveringrealvalueforour
customers and distributors.
Workingwithpartnerswhocandeliverourambition.
Anefficientsupplychainforexports.
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FOLEY WINES ASM 2022

Investingforthe future
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FOLEY WINES ASM 2022

INVESTINGFORTHEFUTURE
MartinboroughDevelopment
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FOLEY WINES ASM 2022

INVESTINGFORTHEFUTURE
MtDifficultyDevelopment
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Work is underway to complete
a 1,000 tonneexpansion ready
for vintage 2023
INVESTINGFORTHEFUTURE
Grove Mill winery expansion
FOLEY WINES ASM 2022

CONTINUINGOURPREMIUMISATIONSTRATEGY
Bringing our brandsto life
Creating memorable food and
wine experiences with our sister
company, The Nourish Group
FOLEY WINES ASM 2022

Dividend reinvestment plan
A number of shareholders have expressedinterest in
reinvesting theirdividend.
Plans are well advanced andwewill havethis inplacefor
the2023dividend.
FOLEY WINES ASM 2022

Outlook
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FOLEY WINES ASM 2022

OUTLOOK
Positive outlook considering
global headwinds
The target for this year is circa 600,000 cases which will generate
an operating net profit before tax of approximately $10m.
However, there are headwinds which may impact this in the new
calendar year, e.g. the global economy, continuing issues with
Covid, logistics and supply chain issues.
Howeverwebelieve wehavethedistributionrelationships and
brands to manage our way through this.
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FOLEY WINES ASM 2022

Shareholderquestions
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FOLEY WINES ASM 2022

1.Auditor’sremuneration
2.Re-electionofWilliamPFoleyII
3.Re-electionofAntonyAnselmi
4.Re-electionofMark Turnbull
5.Re-electionofGrant Graham
ASM2022
Resolutions
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FOLEY WINES ASM 2022

Generalbusiness
THANKYOU
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FOLEY WINES ASM 2022