Foley Wines ASM 2021 Presentation

Annual Shareholders Meeting 2021
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Introduction
Formalities
CEO’s presentation
Shareholder questions
Resolutions
Conduct of voting
General business
Meeting close
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ASM 2021
Agenda
FOLEY WINES ASM 2021

GRANT GRAHAM
Director
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ASM 2021
Introductions
FOLEY WINES ASM 2021
BILL FOLEY
Chairman
TONY ANSELMI
Director
MARK TURNBULL
Director and CEO
PAUL BROCK
Deputy Chairman
JANE TROUGHT
CFO

Annual Shareholders Meeting 2021
CEO’s annual results presentation
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FOLEY WINES ASM 2021

PERFORMANCE OVERVIEW
2021 Results
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Achieved a record operating earnings against a background
of uncertainty and disruption of supply chain and major
logistics issues with shipping.
FOLEY WINES ASM 2021

Case sales
565,000
+ 6%
Bottled sales
revenue
$53m
+6.6%
Operating
earnings
$8m
+3.7%
Domestic
cases
17 0 ,2 9 9
+ 8.6%
Reported
profit after tax
$3.9m
-44%
Cases = 9L equivalents (i.e.12x750ml bottles)
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PERFORMANCE HIGHLIGHTS
Continued Premiumisation
FOLEY WINES ASM 2021

PERFORMANCE HIGHLIGHTS
2021 Results
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Operating Cashflow $7.2 vs $10.8m
Capex $5.6 vs $4.42m
Dividend of 4 cents per share (fully imputed),
increased from 3 cents last year.
FOLEY WINES ASM 2021

New Zealand
17 0 ,0 0 0 cases
+8.3%
Australia
135,000 cases
+2.3%
USA/Canada
127,000 cases
+5.0%
UK/Europe
99,000 cases
+7.6%
Rest of world
34,000 cases
+9.7%
MARKET OVERVIEWS
Bottled Case Sales
FOLEY WINES ASM 2021
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Downturn in hospitality, cruiselineand airline sales.
Costs associated with relabelling to meet different market
requirements.
Global shipping disruptions delaying shipping bookings from
a standard of 2 weeks out to 3-4 months.
Final resultcloser to 600,000 cases if logistical issues hadn’t
prevented some orders being shipping in FY21.
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COVID 19
Considerable Disruption
FOLEY WINES ASM 2021

PERFORMANCE HIGHLIGHTS
2021 Harvest
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Total harvest 5,582 tonnes – down 28% on prior year.
Driven predominately through adverse weather conditions through
flowering.
Widely reported by media as affected large sector of the industry.
Largely insulated from the bottom lineeffect through the focus on
building channels for higher price point brands.
Major focus is around medium to long term vineyard strategy.
FOLEY WINES ASM 2021

Strategy recap
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FOLEY WINES ASM 2021

OUR PURPOSE
Making great wine that people
love to drink around the world.
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FOLEY WINES ASM 2021

OUR AMBITION
To be New Zealand’s
most revered wine group
Through the ownership of iconic wineries
in New Zealand’s most acclaimed regions,
satisfying the most discerning retailers and
restaurants around the world.
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FOLEY WINES ASM 2021

OUR MODEL
Five exceptional wineries and one craft
distillery from three acclaimed regions,
managed from one point.
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MARLBOROUGH
CENTRAL OTAGOMARTINBOROUGH
FOLEY WINES ASM 2021

Investing in brands built on real places and people.
High quality winemaking.
Selling more at higher price points.
OUR LONG TERMSTRATEGIC PRIORITIES
Continuing to realiseour premiumisation
strategy
FOLEY WINES ASM 2021
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OUR LONG TERMSTRATEGIC PRIORITIES
Leveraging the power of our portfolio
FOLEY WINES ASM 2021
Cross-selling the portfolio.
A ‘one stop shop’ portfolio of brands across price points and regions.
Delivering real value to our customers and distributors.
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OUR LONG TERMSTRATEGIC PRIORITIES
Nurturing strong, long-term relationships
FOLEY WINES ASM 2021
A collaborative and agile partner delivering real value for our
customers and distributors.
Working with partners who can deliver our ambition.
An efficient supply chain for exports.
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OUR LONG TERMSTRATEGIC PRIORITIES
Building premium, diversified distribution
platforms
FOLEY WINES ASM 2021
A sales support structure in New Zealandgiving us access to
premium distribution across all channels.
Strong on-premise focus in New Zealand.
Focus on geographical diversification of sales.
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Investing for the future
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FOLEY WINES ASM 2021

INVESTING FOR THE FUTURE
Martinborough Development
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Total investment $11m, $3.5m spent in last year (underground
barrel facility).
Includes 100 seat restaurant, private dining room, tasting room,
Lighthouse distillery and warehouse.
Creation of world class “spiritual home” of all our Martinborough
brands.
Opening second half of 2022.
FOLEY WINES ASM 2021

INVESTING FOR THE FUTURE
Martinborough Development
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FOLEY WINES ASM 2021

INVESTING FOR THE FUTURE
Mt Difficulty Development
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Was an original condition of OIO.
New concept signed off by board and expect to lodge new
resource consent by end of year.
Commence building in 2022.
Enhancement of the Mt Difficulty “spiritual home”.
FOLEY WINES ASM 2021

INVESTING FOR THE FUTURE
Mt Difficulty Development
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FOLEY WINES ASM 2021

OIO application now lodged – price confidential until decision
– finance approved from BNZ.
Vineyard to support long term growth of Roaring Meg brand.
55.5 hectares, 30 planted in Pinot Noir.
Intention to plant another approximately 12 hectares ASAP.
Excellent water and frost protection.
INVESTING FOR THE FUTURE
Zebra vineyards acquisition
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FOLEY WINES ASM 2021

Replant programme this year $700k included in CAPEX.
Focussed on poor yielding blocks in Central Otago and Martinborough.
Long term plan to align plantings with future growth needs,
e.g. Riesling being replanted with Pinot Noir in Central Otago.
INVESTING FOR THE FUTURE
Replant programmes
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FOLEY WINES ASM 2021

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FOLEY WINES ASM 2021
CONTINUING OUR PREMIUMISATION STRATEGY
Building powerful brands
Packaging refresh for Martinborough Vineyard
reaffirms this as one of New Zealand’s iconic
luxury wine brands.
Te Tera recast in contemporary, stylish packaging
reflecting its wine style.
Both new labels on shelves later this year.

Outlook
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FOLEY WINES ASM 2021

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FOLEY WINES ASM 2021
OUTLOOK
A strong foundation for growth
At this stage, there is no change in the forecast of an operating
earnings before tax of $8m for the year ended June 2022.
However, Covid, shipping, exchange rates all can have a material
influence on this.

Shareholder questions
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FOLEY WINES ASM 2021

1. Auditor’s remuneration
2. Re-election of William P Foley II
3. Re-election of Antony Anselmi
4. Re-election of Paul Brock
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FOLEY WINES ASM 2021
ASM 2021
Resolutions

General business
THANK YOU
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FOLEY WINES ASM 2021