Foley Wines 2024 ASM Presentation

AnnualShareholdersMeeting2024
1

Introduction
Formalities
CEO’spresentation
Shareholderquestions
Resolutions
Conductof voting
General business
Meetingclose
ASM2024
Agenda
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FOLEY WINES ASM 2024

GRANTGRAHAM
Director
ASM2024
Introductions
FOLEY WINES ASM 2024
PAUL BROCK
Chairman
TONYANSELMI
Director
MARKTURNBULL
DirectorandCEO
ROB FOLEY
Director
JANETROUGHT
CFO
3

AnnualShareholdersMeeting2024
CEO’sannualresultspresentation
4
FOLEY WINES ASM 2024

PERFORMANCEOVERVIEW
2024Results
The company remained focused on selling its brand through its
established channels and keeping its wines front of mind
against a backdrop of a very challenging global economy
and, at the same time, an oversupply of wine globally.
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FOLEY WINES ASM 2024

Case
sales
561,000
- 4%
Bottledsales
revenue
$62.5m
+ 0.3%
Operating
earnings
$4.13m
- 60%
Reported profit
aftertax*
$0.47m
- 93%
Cases= 9Lequivalents(i.e.12x750ml bottles)
* Excluding one-off tax adjustment
PERFORMANCEOVERVIEW
Continuedpremiumisation
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FOLEY WINES ASM 2024

NewZealand
176,000cases
+ 1%
Australia
81,000cases
- 33%
USA/Canada
133,000cases
+ 60%
UK/Europe
133,000cases
- 22%
Restofworld
38,000cases
+ 6%
MARKETOVERVIEWS
Bottledcasesales
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FOLEY WINES ASM 2024
Total New Zealand packaged wine exports: down 21%, Foley Wines exports: down 5.8%

PERFORMANCEOVERVIEW
2024Results
OperatingCashflow$4.3mvs $10.3m
Capex$5.8m vs $14m
The Company completed a major upgrade of the
Vavasour winery refrigeration, plus continued its
replanting of underperforming vineyards.
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FOLEY WINES ASM 2024

INVESTING FOR THE FUTURE
Replanting vineyards
FOLEY WINES ASM 2024

PERFORMANCEOVERVIEW
2024Harvest
Totalharvest6,404 tonnes– down21%onprioryear.
Martinborough and Marlborough experienced disruptive
weather and cooler spring growing conditions that resulted in a
region-wide reduction in yield for the 2023/2024 growing
season.
A warm, dry summer resulted in an early harvest and quality with
which the winemakers were delighted.
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FOLEY WINES ASM 2024

FOLEY WINES ASM 2024
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

FOLEY WINES ASM 2024
CONSTANT IMPROVEMENT
Sustainability steps taken this year
TRANSITION TO SUPER LIGHTWEIGHT BOTTLES
•Major bottlings transitioning to new bottle over
next 12 months
•Continue to be manufactured in New Zealand
from a high percentage of New Zealand
recycled glass
•Will further reduce our total use of glass and
carbon footprint from transport and shipping
ONGOING NATIVE REPLANTING PROGRAMME
•Strong progress again this year with 2,000
natives planted at Grove Mill, Vavasour and
17 Valley
•Combined with continued pest eradiation, this
makes our sites even more attractive as habitats
for native species.
SOLAR EXPANSION
•Currently exploring more solar options
for winery sites

Strategyrecap
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FOLEY WINES ASM 2024

OUR UNIQUEMODEL
Fiveexceptionalwineriesandonecraft
distillery fromthreeacclaimedregions,
managedfromonepoint
MAR L BOR O U G H
CEN TRA LO T A G OMAR TIN BOR O U G H
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FOLEY WINES ASM 2024

OUR UNIQUE MODEL
Enables us to
satisfy the most
discerning retailers
& restaurants at
home and around
the world
FOLEY WINES ASM 2024

OURLONGTERMSTRATEGICPRIORITIES
Continuingto
realise our
premiumisation
strategy
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FOLEY WINES ASM 2024
Our long term strategic priorities
remain the same
Leveraging the
power of our
portfolio
Nurturing strong,
long-term
relationships

FOLEY WINES ASM 2024
ANOTHER
OUTSTANDING
A W A R D S
SEASON
Gold Medal Winners
F O R F O L E Y W I N E S
Double Gold Medal Winners
Gold Medal Winners
An outstanding
awards season
so far
FOR FOLEY WINES

Current trading environment
and key priorities
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FOLEY WINES ASM 2024

FOLEY WINES ASM 2024
12 months ago we discussed uncertain
trading conditions
Consumers grappling with high interest rates globally; wine is a
discretionary spend for consumers.
Anecdotal evidence indicated significant amounts of bulk wine on the
market and downward pressure on net pricing.
Further, the tariff increases in the UK were set to impact sales in this
market along with major increase in costs across the entire supply chain.
The net effect was expected to be upward pressure on costs and
downward pressure on net price.
→ These conditions proved to be the reality

FOLEY WINES ASM 2024
Progress against priorities set in 2023
1. US market. We acknowledged we need to do better and developed a plan
to return this market to growth in the short term and provide a strong platform
for the future.
•We delivered 33% growth in this market
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.
•We invested in additional retail support to drive sales.
Critically, we maintained these listings and grew listings.
3. Managing costs prudently.
•We managed wage cost in line with prior year in a high inflationary
environment

FOLEY WINES ASM 2024
4. Establishing The Runholder as an icon in the region as part of our wine
tourism strategy.
•We welcomed over 30,000 visitors to The Runholder in the past 12 months
5. Seeking out new high quality routes to market.
•We have established new relationships with high quality partners
Progress against priorities set in 2023

FOLEY WINES ASM 2024
Solid start:
Foley Wines export cases 110,000, up 48% vs LY.
Compared to industry: down 11%* for first two months.
Foley Wines New Zealand performance: 6% growth for portfolio
Compared to -1.5% growth
#
for market in QTR ended 30.9.24.
Margins affected by higher cost of goods from 2024 vintage.
Anecdotal evidence suggests significant volume of bulk 2023 sauvignon blanc not
sold in market.
Our inventory is well placed with clear routes to market – have been shipping
2024 vintage for several months.
FIRST QUARTER
Current trading environment
* New Zealand Winegrowers August Update for packaged wine
#
Nielsen Discovery data for period ending 29.9.24

FOLEY WINES ASM 2024
Key focus areas for 2024/25
Key focus is to reduce debt this financial year
Manage capex prudently
Sell through 2024 vintage in a timely manner
Continued focus on seeking out and cementing new opportunities
Continue to build momentum with The Runholder brand home

Shareholderquestions
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FOLEY WINES ASM 2024

1. Auditor’sremuneration
2. Re-electionof AnthonyAnselmi
3. Re-electionof Paul Brock
ASM2024
Resolutions
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FOLEY WINES ASM 2024

Generalbusiness
THANKYOU
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FOLEY WINES ASM 2024

Looking for a spot for lunch?
We encourage you to dine at
one of Foley Hospitality Group’s
restaurants nearby
FOLEY WINES ASM 2024
Local dining
suggestions
THE BRIT, BRITOMART
5 MINUTE WALK
SOMM, PRINCES WHARF
5 MINUTE WALK
SOUL, VIADUCT HARBOUR
5 MINUTE WALK
TYLER ST SPORT, BRITOMART
5 MINUTE WALK
ANDIAMO, JERVOIS RD
10 MINUTE DRIVE
JERVOIS STEAK HOUSE, JERVOIS RD
10 MINUTE DRIVE