Foley Wines 2023 ASM Presentation

AnnualShareholdersMeeting2023
1

Introduction
Formalities
CEO’spresentation
Shareholderquestions
Resolutions
Conductofvoting
Generalbusiness
Meetingclose
ASM2023
Agenda
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FOLEY WINES ASM 2023

GRANTGRAHAM
Director
ASM2023
Introductions
FOLEY WINES ASM 2023
PAUL BROCK
Chairman
TONYANSELMI
Director
MARKTURNBULL
DirectorandCEO
ROB FOLEY
Director
JANETROUGHT
CFO
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AnnualShareholdersMeeting2023
CEO’sannualresultspresentation
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FOLEY WINES ASM 2023

PERFORMANCEOVERVIEW
2023Results
The 2023 year was a record for the Company and reflected
the work done in building the brands, the continued focus on
producing high quality wine and building quality routes to
market. At our ASM last year we outlined our goal of an
operating profit before tax of $10m. Achieving this against an
increasingly challenging world economy and very high interest
rates was very satisfying.
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FOLEY WINES ASM 2023

Case
sales
584,000
+11.2%
Bottledsales
revenue
$62.3m
+13.8%
Operating
earnings
$10.2m
+ 31.2%
Reported profit
aftertax
$6.3m
+ 2.4%
Cases=9Lequivalents(i.e.12x750ml bottles)
PERFORMANCEHIGHLIGHTS
Continuedpremiumisation
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FOLEY WINES ASM 2023

NewZealand
174,000cases
+ 18%
Australia
120,000cases
+ 20%
USA/Canada
84,000cases
-16%
UK/Europe
170,000cases
+22%
Restofworld
36,000cases
-5%
MARKETOVERVIEWS
Bottledcasesales
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FOLEY WINES ASM 2023

PERFORMANCEHIGHLIGHTS
2023Results
OperatingCashflow$10.3mvs$7.6m
Capex$14m vs $6.2m (excluding Zebra purchase)
The Company completed two marquee projects during the
year –the winery expansion at Grove Mill and The
Runholder brand home in Martinborough.
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FOLEY WINES ASM 2023

Expansion completed and
operational for vintage 2023,
increasing the winery’s capacity
to 4,000 tonnes.
INVESTINGFORTHEFUTURE
Grove Mill winery expansion
FOLEY WINES ASM 2023

INVESTINGFORTHEFUTURE
The Runholder brand home
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FOLEY WINES ASM 2023
Restaurant, cellar door
and distillery open
since August.
Creating long term
emotional connections
with brands.

PERFORMANCEHIGHLIGHTS
2023Harvest
Totalharvest8,137tonnes–down12%onprioryearand up
46% on the 2021 harvest.
The team in Martinborough had a real challenge dealing with a
very wet summer. While we did not experience the devastation
of Hawkes Bay, Martinborough certainly suffered as well. To the
team’s credit they worked tirelessly in very trying conditions to
achieve the best outcome.
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FOLEY WINES ASM 2023

FOLEY WINES ASM 2023
SUSTAINABILITY
Practical, tangible steps to safeguard
our environment for future generations
RECYCLED NEW ZEALAND GLASS
POWERED BY SOLAR
RESTORING LOCAL HABITATS
INDUSTRY-LEADING WATER CONSERVATION
SUSTAINABLE MATERIALS
SMALL FOOTPRINTS

We’re building an even closer
relationship with our sister
company Foley Hospitality and
bringing our wines to life in iconic
New Zealand venues.
FOLEY WINES ASM 2023
PREMIUMISATION
Creating memorable
food & wine experiences

Strategyrecap
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FOLEY WINES ASM 2023

OURUNIQUEMODEL
Fiveexceptionalwineriesandonecraft
distillery fromthreeacclaimedregions,
managedfromonepoint
MARLBOROUGH
CENTRALOTAGOMARTINBOROUGH
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FOLEY WINES ASM 2023

OUR UNIQUEMODEL
Enables us to
satisfy the most
discerning retailers
& restaurants at
home and around
the world
FOLEY WINES ASM 2023

OURLONGTERMSTRATEGICPRIORITIES
Continuingto
realise our
premiumisation
strategy
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FOLEY WINES ASM 2023
Our long termstrategic priorities
remain the same
Leveraging the
power of our
portfolio
Nurturing strong,
long-term
relationships

FOLEY WINES ASM 2023
AN ASTOUNDING
AWARDS SEASON
Gold Medal Winners
CHAMPION
“It’s the challenging vintages that
reveal great winemaking teams.”
F O R F O L E Y W I N E S
Double Gold Medal Winners
GOLD
2023
GOLD
2023
GOLD
2023
GOLD
2023
GOLD
2023

Current trading environment
and key priorities
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FOLEY WINES ASM 2023

FOLEY WINES ASM 2023
Current trading conditions remain uncertain
Consumers are grappling with high interest rates globally; wine is a
discretionary spend for consumers.
Anecdotal evidence indicates significant amounts of bulk wine on the
market and downward pressure on net pricing.
Further, the tariff increases in the UK are impacting sales in this
market along with major increase in costs across the entire supply
chain.
The net effect is upward pressure on costs and downward pressure on
net price.

FOLEY WINES ASM 2023
Immediate priorities
1.US market. We acknowledged we need to do better and have developed a
plan that will return this market to growth in the short term and provide a strong
platform for the future.
2.Working closely with our key partners to assist them to navigate through the
challenges they have and ensure we maintain a strong working relationship.
3.Managing costs prudently.
4.Establishing The Runholder as an icon in the regionaspartofourwine
tourismstrategy.
5.Seeking out new high quality routes to market.

FOLEY WINES ASM 2023
IMMEDIATE PRIORITIES
Continued...
Notwithstanding these challenges, we have total confidence in our
business model and the quality of our relationships.

Shareholderquestions
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FOLEY WINES ASM 2023

1.Auditor’sremuneration
2.Re-electionofAnthonyAnselmi
3.ElectionofRobert P Foley II
ASM2023
Resolutions
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FOLEY WINES ASM 2023

Generalbusiness
THANKYOU
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FOLEY WINES ASM 2023