Delegat Group Limited — AGM Information 2016

Dec 6, 2016

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ANNUAL MEETING

6 December 2016

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WELCOME

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• Jim Delegat – Executive Chairman

• Graeme Lord – Managing Director

• Robert Wilton

• Jane Freeman

• Dr. Alan Jackson

• Shelley Cave

• Murray Annabell – Chief Financial

• Officer

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AGENDA

• Executive Chairman’s address

• Managing Director’s address

• Shareholder questions and discussion

• Voting on resolutions of the meeting

• General business

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EXECUTIVE CHAIRMAN’S ADDRESS – JIM DELEGAT

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FY2016 – ANOTHER YEAR OF RECORD PERFORMANCE

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• Record case sales of 2,411,000.

• Sales of more than 1,000,000 cases in North America for the first time.

• Record Operating NPAT of $37.0 million.

• Fully imputed dividend of 12 cents per share, up 9%.

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INVESTING FOR GROWTH

• $113.8 million of capital expenditure invested in FY2016.

• $50.8 million of capital expenditure planned in FY2017.

• Vineyard development – Marlborough, Hawke’s Bay and Barossa Valley.

• Marlborough winery expansion.

• New Hawke’s Bay winery.

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NEW HAWKE’S BAY WINERY

• Successful inaugural 2016 vintage.

• Long term capacity 10,000 tonnes.

• Designed for making Super Premium Merlot, Pinot Gris and Sparkling wine.

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VINEYARD DEVELOPMENT

• 107 hectares in FY2016.

• 72 hectares in FY2017.

• 692 hectares of viticultural land to be planted from FY2018 onwards.

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FUNDING GROWTH

• Funding growth through retained earnings and bank debt.

• Strong balance sheet.

• Shareholders’ equity $313.9 million.

• Net bank debt $282.7 million.

• Undrawn syndicated bank facilities $67.3 million.

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

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MANAGING DIRECTOR’S ADDRESS – GRAEME LORD

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FY2016 - GLOBAL SALES PERFORMANCE

• Australia, New Zealand, Asia Pacific 705,000 cases, up 4%.

• North America 1,012,000 cases, up 14%.

• United Kingdom, Ireland and Europe 694,000 cases, up 7%.

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MAJOR AWARDS AND ACCOLADES

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Oyster Bay

‘Hot Brand’ for the sixth consecutive year by New York’s Impact Magazine and ‘One of the World’s Most Admired Brands’ by Drinks International Magazine UK

Oyster Bay Marlborough Sauvignon Blanc

Awarded ‘Premium White Wine of the Year’ for the 9th year at the Australian Liquor Industry Awards

Oyster Bay Marlborough Sauvignon Blanc 2015

90 Points and ‘Best Buy’ by Wine Enthusiast Magazine

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Delegat Crownthorpe Terraces Chardonnay 2014

Gold Medal at the Decanter World Wine Awards and Gold Medal at the New Zealand International Wine Show

Delegat Crownthorpe Terraces Merlot 2014

Gold Medal at the New Zealand International Wine Show

Barossa Valley Estate Cabernet Sauvignon 2014

Gold Medal at the Sydney International Wine Competition and Gold Medal at the San Francisco International Wine Competition

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2016 VINTAGE

• New Zealand harvest 33,236 tonnes, up 33%.

• Barossa Valley harvest 2,601 tonnes, up 56%.

• Excellent quality in all regions.

• Inventories in place to achieve sales plans.

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SALES GROWTH FY2016 - FY2021

Delegat Group Planned Sales Volume (Thousands of 9 Litre cases)

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----- Start of picture text -----

3,401
3,211
3,015
2,816
2,632
2,411
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
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FORECAST FY2017

• Strong year to date sales.

• On track to achieve full year sales growth goal.

• Full year Operating NPAT forecast in line with this year’s record performance based on prevailing exchange rates.

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Thank you

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AGENDA

• Executive Chairman’s address

• Managing Director’s address

• Shareholder questions and discussion

• Voting on resolutions of the meeting

• General business

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ANNUAL MEETING

6 December 2016

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