Delegat Group Limited — AGM Information 2017

Dec 5, 2017

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ANNUAL MEETING

5 December 2017

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WELCOME

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• Jim Delegat – Executive Chairman

• Graeme Lord – Managing Director

• Rose Delegat

• Robert Wilton

• Dr. Alan Jackson

• Shelley Cave

• Murray Annabell – Chief Financial Officer

• John Freeman – Managing Director Designate

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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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FY2017 – ANOTHER YEAR OF RECORD PERFORMANCE

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• Record case sales of 2,656,000, up 10%.

• North America 12% case sales growth.

• Record operating NPAT of $38.5 million.

• Record cash flow from operations of $59.2 million.

• Fully imputed dividend of 13 cents per share, up 8%.

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INVESTING FOR GROWTH

• $40.5 million of capital expenditure invested in FY2017.

• $46.2 million of capital expenditure planned in FY2018.

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

• Marlborough and Hawke’s Bay winery expansion.

• This capital investment supports the Group’s plan to grow sales by more than 1,000,000 cases to 3,685,000 cases by 2022.

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VINEYARD DEVELOPMENT

• 75 hectares in FY2017.

• 230 hectares in FY2018.

• 588 hectares of viticultural land to be planted from FY2019 onwards.

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CROWNTHORPE RESERVOIR

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FUNDING GROWTH

• Funding growth through retained earnings and bank debt.

• Strong balance sheet.

• Shareholders’ equity $307.1 million.

• Net bank debt $278.0 million.

• Undrawn syndicated bank facilities $72.0 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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FY2017 - GLOBAL SALES PERFORMANCE

• Australia, New Zealand, Asia Pacific 785,000 cases, up 11%.

• North America 1,135,000 cases, up 12%.

• United Kingdom, Ireland and Europe 736,000 cases, up 6%.

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A WORLD OF ACCLAIM

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2017 VINTAGE

• New Zealand harvest 34,595 tonnes, up 4%.

• Barossa Valley harvest 2,760 tonnes, up 6%.

• Excellent quality in all regions.

• Inventories in place to achieve sales plans.

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SALES GROWTH FY2017 - FY2022

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

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3,685
3,504
3,333
3,021
2,782
2,656
2017 2018 2019 2020 2021 2022
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FORECAST FY2018

• On track to achieve full year sales growth goal.

• Full year operating NPAT forecast to be in line with consensus of $40.7 million.

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A WORLD OF ACHIEVEMENT

A WORLD OF ACHIEVEMENT

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ANNUAL MEETING

5 December 2017

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