Delegat Group Limited — AGM Information 2019

Dec 3, 2019

ANNUAL MEETING

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3 December 2019

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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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FY2019 – ANOTHER YEAR OF RECORD PERFORMANCE

• Record case sales of 3,008,000, up 10%.

• North America 7% case sales growth.

• UK, Ireland & Europe 30% case sales growth.

• Record operating NPAT of $51.4 million, up 14%.

• Generated cash flows from operations of $55.4 million.

• Fully imputed dividend of 17 cents per share, up 13%.

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INVESTING FOR GROWTH

• $33 million of capital expenditure invested in FY2019.

• $44 million of capital expenditure planned in FY2020.

• Vineyard development in New Zealand.

• Marlborough and Hawke’s Bay winery expansion.

• This capital investment supports the Group’s plan to grow sales by more than 643,000 cases to 3,651,000 cases by FY2022.

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VINEYARD DEVELOPMENT & SUSTAINABILITY

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FUNDING GROWTH

• Funding growth through retained earnings and bank debt.

• Strong balance sheet.

• Shareholders’ equity $374.5 million.

• Net bank debt $270.3 million.

• Undrawn syndicated bank facilities $59.7 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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FY2019 – GLOBAL SALES PERFORMANCE

Delegat Group Annual Case Sales

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3,500
3,008
3,000
2,656 [2,736]
2,411
2,500
2,210
2,000 1,950 [1,969 ] 1,850 1,946 [2,031]
1,738
1,449
1,500
1,237
1,000 809
583
500 306
209
149
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
9Le (000's)
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Source: Delegat

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FY2019 – GLOBAL SALES PERFORMANCE
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FY2019 – GLOBAL SALES PERFORMANCE

• Australia, New Zealand, Asia Pacific 780,000 cases.

• North America 1,332,000 cases, up 7%.

• United Kingdom, Ireland and Europe 896,000 cases, up 30%.

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FY2019 – GLOBAL SALES PERFORMANCE

• Australia, New Zealand, Asia Pacific 780,000 cases.

• North America 1,332,000 cases, up 7%.

• United Kingdom, Ireland and Europe 896,000 cases, up 30%.

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CONSUMER ADVERTISING

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FY2019 – GLOBAL SALES PERFORMANCE

• Australia, New Zealand, Asia Pacific 780,000 cases.

• North America 1,332,000 cases, up 7%.

• United Kingdom, Ireland and Europe 896,000 cases, up 30%.

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FY2019 – GLOBAL SALES PERFORMANCE

• Australia, New Zealand, Asia Pacific 780,000 cases.

• North America 1,332,000 cases, up 7%.

• United Kingdom, Ireland and Europe 896,000 cases, up 30%.

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FY2019 – GLOBAL SALES PERFORMANCE

• Australia, New Zealand, Asia Pacific 780,000 cases.

• North America 1,332,000 cases, up 7%.

• United Kingdom, Ireland and Europe 896,000 cases, up 30%.

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OYSTER BAY CONSUMER RESEARCH

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LIKES/INTERESTS
Travel Involved
Premium retailers Tech-savvy
Home-owners Wine lovers
Dine-out Professionals
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• Typically 25-54 with an even gender balance

• More likely to be tertiary educated, white-collar professionals working across sectors like Business and Finance, Management and Sales

• Most likely to be married and enjoy other alcohol types like champagne and gin

• More involved than the average premium wine consumer

Sources: 1. Wine Intelligence 2018

1. OB Social Media, Always on – Tilt Digital, 2019

2. New World Loyalty Data – Lab 360, 2019

3. Wine Intelligence BE & OB focus groups US and Australia, 2018

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OYSTER BAY CONSUMER RESEARCH – HIGH VALUE SHOPPERS

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Oyster Bay
22 $24.10 $537
Shopper spend per annual buy
(USA) trips trip rate
Typical Wine
7.5 $16.91 $126
Shopper spend per annual buy
(USA) trips trip rate
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Source: Numerator Oyster Bay Insights, USA 2019

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BAROSSA VALLEY ESTATE CELLAR DOOR AND GARDENS

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DELEGAT GROUP 2019 VINTAGE

• New Zealand harvest 35,500 tonnes, down 11% from the 2018 vintage

• Australia harvest for Barossa Valley Estate 1,600 tonnes

• Exceptional quality in all regions delivering highly expressive wines

• Appropriate inventories in place to achieve future sales plans

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INVESTING IN OUR PEOPLE

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SALES GROWTH FY2020 – FY2022

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

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4000
3500
3000
2500
2000
1500
1000
500
0
FY2019 Actual FY2020 Forecast FY2021 Projection FY2022 Projection
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FORECAST FY2020

• On track to achieve full year sales growth to 3.24 million cases.

• Full year operating NPAT forecast to be in line with consensus of $52.4 million.

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ANNUAL MEETING

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3 December 2019

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