Delegat Group Limited — AGM Information 2018

Dec 4, 2018

ANNUAL MEETING

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4 December 2018

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WELCOME

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• Jim Delegat – Executive Chairman

• John Freeman – Managing Director

• Rose Delegat

• Robert Wilton

• 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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FY2018 – ANOTHER YEAR OF RECORD PERFORMANCE

• Record case sales of 2,736,000, up 3%.

• North America 10% case sales growth.

• Record operating NPAT of $44.9 million.

• Generated cash flows from operations of $57.8 million.

• Fully imputed dividend of 15 cents per share, up 15%.

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INVESTING FOR GROWTH

• $46 million of capital expenditure invested in FY2018.

• $33 million of capital expenditure planned in FY2019.

• Vineyard development in New Zealand and the Barossa Valley.

• Marlborough and Hawke’s Bay winery expansion.

• This capital investment supports the Group’s plan to grow sales by more than 640,000 cases to 3,377,000 cases by FY2021.

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FUNDING GROWTH

• Funding growth through retained earnings and bank debt.

• Strong balance sheet.

• Shareholders’ equity $343.2 million.

• Net bank debt $281.5 million.

• Undrawn syndicated bank facilities $68.5 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 – JOHN FREEMAN

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FY2018 – GLOBAL SALES PERFORMANCE

• Australia, New Zealand, Asia Pacific 799,000 cases, up 2%.

• North America 1,250,000 cases, up 10%.

• • United Kingdom, Ireland and Europe 687,000 cases.

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FY2018 – GLOBAL SALES PERFORMANCE

• Australia, New Zealand, Asia Pacific 799,000 cases, up 2%.

• North America 1,250,000 cases, up 10%.

• • United Kingdom, Ireland and Europe 687,000 cases.

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OYSTER BAY BUYERS IN THE UNITED STATES

Oyster Bay purchase rate and the population of premium drinkers has increased. Therefore the population of Oyster Bay buyers has increased.

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54.9
48.1
34.2 34.9
1.16 1.32 2.35 3.42
3% 4% 5% 6%
2010 2012 2014 2016
Premium
$10+ $10+ $10+ $10+ definition
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Population of USA premium wine drinkers (millions)

Population of USA premium wine drinkers who have bought Oyster Bay in the past 3 months (millions)

• % % who have bought Oyster Bay in the past 3 months (Base: all USA premium wine drinkers)

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FY2018 – GLOBAL SALES PERFORMANCE

• Australia, New Zealand, Asia Pacific 799,000 cases, up 2%.

• North America 1,250,000 cases, up 10%.

• • United Kingdom, Ireland and Europe 687,000 cases.

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A WORLD OF ACCLAIM

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A WORLD OF ACHIEVEMENT

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DELEGAT GROUP 2018 VINTAGE

• New Zealand harvest 38,012 tonnes, up 10%.

• Australia harvest 2,047 tonnes.

• Excellent quality in all regions.

• Inventories in place to achieve sales plans.

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SALES GROWTH FY2018 – FY2021

Delegat Group Planned Sales Volume

(Thousands of 9 Litre cases)

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4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
FY2018 Actual FY2019 Forecast FY2020 Projection FY2021 Projection
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FORECAST FY2019

• On track to achieve full year sales growth to 2.945 million cases.

• Full year operating NPAT forecast to be in line with consensus of $50.3 million.

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WINNING ON THE WORLD STAGE

A WORLD OF ACHIEVEMENT

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ANNUAL MEETING

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4 December 2018

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