Delegat Group Limited · NZX:DGL
Delegat — FY2013 Earnings Presentation
32 slides from Delegat's earnings presentation, Aug 26, 2013
Slide 1: 2013 Results Announcement
2013 RESULTS ANNOUNCEMENT 26 August 2013 1
Slide 2: Agenda
AGENDA Business Performance – FY13 Investing for the Future Barossa Valley Estate Outlook 2
Slide 3: Performance Highlights Year-to-Date
Operating NPAT of $26.3 $ million – up 3% on last year, after absorbing the adverse effect of FX ($1.3m) and BVE acquisition PERFORMANCE costs ($2.0m). ($2 0m) HIGHLIGHTS YEAR‐TO‐ Operating cash flows of $39.2 million. DATE Completing the acquisition of Barossa Valley Estate Pty Ltd. Dividen
Slide 4: Case Sales, Case Price Realisation and FX
CASE SALES, CASE PRICE REALISATION AND FX CASE SALES, SALES CASE PRICE REALISATION AND FOREIGN CURRENCY Case Sales (000’s) Jun 2013 Jun 2012 % Actual Actual 2012 UK, Ireland and Europe 604 622 ‐3% North America (USA (USA, Canada) 670 534 25% Australia, New Zealand, and Asia Pacific 672 694 ‐3% Tota
Slide 5: Case Sales, Case Price Realisation and FX - GBP
CASE SALES, CASE PRICE REALISATION AND FX ‐ GBP £ 0.5000 0.4500 0.4000 0.3500 2008 2009 2010 2011 2012 2013 Jun 2013 Jun 2012 % Actual Actual vs 2012 FOREIGN CURRENCY RATES £ 0.4996 0.4989 0% A$ 0.7858 0.7704 -2% US$ 0.8004 0.7689 -4% C$ 0 8216 0.8216 0 8003 0.8003 -3% 3% 5
Slide 6: Case Sales, Case Price Realisation and FX - AUD
CASE SALES, CASE PRICE REALISATION AND FX ‐ AUD A$ 0.8700 0.8500 0.8300 0.8100 0.7900 0.7700 0.7500 2008 2009 2010 2011 2012 2013 Jun 2013 Jun 2012 % Actual Actual vs 2012 FOREIGN CURRENCY RATES £ 0.4996 0.4989 0% A$ 0.7858 0.7704 -2% US$ 0.8004 0.7689 -4% C$ 0.8216 0.8003 -3% 6
Slide 7: Case Sales, Case Price Realisation and FX - USD
CASE SALES, CASE PRICE REALISATION AND FX ‐ USD US$ 0.8000 0.7500 0.7000 0 6500 0.6500 0.6000 0.5500 2008 2009 2010 2011 2012 2013 Jun 2013 Jun 2012 % Actual Actual vs 2012 FOREIGN CURRENCY RATES £ 0.4996 0.4989 0% A$ 0.7858 0.7704 -2% US$ 0.8004 0.7689 -4% C$ 0.8216 0.8003 -3% 7
Slide 8: Sales Revenue Growth Analysis
SALES REVENUE GROWTH ANALYSIS NZ$ millions Jun 2013 Jun 2012 % Actual Actual vs 2012 SALES REVENUE 222 0 222.0 215 1 215.1 3% SALES MOVEMENTS BREAKDOWN: VOLUME 5% VALUE -2% Foreign Exchange -2% Underlying Price and Product Mix 0% 8
Slide 9: Operating Performance
OPERATING PERFORMANCE Jun 2013 Jun 2012 % NZ$ MILLIONS Actual Actual vs 2012 Sales Revenue 222.0 215.1 3% Total Operating Revenue 223.1 220.1 1% Operating Gross Profit 125.7 120.6 4% Operating Gross Margin 56% 56% Operating Expenses (81.1) (77.1) -5% Operating EBIT 44 6 44.6 43 5 43.5 3% Operating
Slide 10: Operating Profit Movement - Last Year
OPERATING PROFIT MOVEMENT – LAST YEAR NZ $millions 36.0 35.0 34.0 $7.7m 33.0 32.0 ($1.3m) 31.0 $0.5m 30.0 ($1.8m) 29.0 ($2.0m) 28.0 27.0 $26.3m 26.0 $25.6m ($2.4m) 25.0 24.0 23.0 22 0 22.0 Jun 2012 Actual Margin impact on Net FX Impact Promotion costs Interest BVE Other Jun 2013 Actual sales 10
Slide 11: Impact of 'Fair Value' Adjustments
IMPACT OF ‘FAIR VALUE’ ADJUSTMENTS NZ$ MILLIONS Jun 2013 Jun 2012 % Actual Actual vs 2012 Operating NPAT 26.3 25.6 3% Operating NPAT % of Sales 12% 12% Biological g Assets ((Vines)) 2.9 1.4 117% Harvest Provision Release (Grapes) 14.2 0.1 n/m Derivative Instruments 3.5 (1.5) 333% Other Fair Value I
Slide 12: Balance Sheet Summary
BALANCE SHEET SUMMARY NZ$ MILLIONS Jun 2013 Jun 2012 % Actual Actual vs 2012 Assets Current Assets 123.7 100.7 23% Fixed Assets 233 4 233.4 186 0 186.0 26% Biological Assets 58.9 47.9 23% Total Assets 416.0 334.5 24% Liabilities Current Liabilities 36.5 35.5 -3% Deferred Tax Liabilities 27.2 22.0 -
Slide 13: Net Debt Movement - Actual FY12 to Actual FY13
NET DEBT MOVEMENT– ACTUAL FY12 TO ACTUAL FY13 NZ $ m 140 0 140.0 $28 6m $28.6m $134 9m $134.9m 120.0 $9.1m 100.0 $91.9m $18.6m $26.5m 80.0 60.0 $12.6m 40.0 ($52 4 ) ($52.4m) 20.0 June 2012 Net Cash from Working Capex Vineyard Dividend Barossa Valley June 2013 Net Debt Operations Capital Development
Slide 14: Net Debt Overview
NET DEBT OVERVIEW NZ$ MILLIONS Jun 2013 Jun 2012 % Actual Actual vs 2012 Funding F di (NZ$ millions) illi ) Operating Cash Flow 39.2 49.6 -21% Net Debt 134.9 91.9 -47% Key Ratios Operating Interest Cover 6.36 5.69 12% Equity / (Equity + Net Debt) % 61.7% 66.8% -8% Senior Debt Ratio 2.38 1.66 -43% R
Slide 15: Agenda
AGENDA Business Performance – FY13 Investing for the Future Barossa Valley Estate Outlook 15
Slide 16: Investing in Growth
INVESTING IN GROWTH Acquired 102 hectares of fully productive vineyards in Marlborough’s Wairau Valley. Acquired an additional 153 hectares of land in Marlborough’s Awatere Valley. Pinot Noir to be planted in 2013. Acquired d an additional dd l 241 hectares h of land in Marlborough’s Wairau Va
Slide 17: Investing in Growth - Capital Expenditure Program
INVESTING IN GROWTH ‐ CAPITAL EXPENDITURE PROGRAM 2013: Includes acquisition of fully productive vineyards, bare land and Barossa Valley Estate. 2014‐2015: Includes Vineyard developments for bare land in Marlborough g Million of $ Hawkes Bay Winery development of 10,000 tonne capacity ($60 mil
Slide 18: Agenda
AGENDA Business Performance – FY13 Investing for the Future Barossa Valley Estate Outlook 18
Slide 19: 19
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Slide 20: Barossa Valley Estate
BAROSSA VALLEY ESTATE Barossa Valley Estate is recognised as one of Australia’s outstanding Super Premium winemakers. Our focus O f iis tto make k exceptional ti l Shi Shiraz and d Cabernet Sauvignon expressing the character, elegance and intensity of the famed Barossa Valleyy wine region. g Our goa
Slide 21: Barossa Valley Estate Assets Acquired
BAROSSA VALLEY ESTATE ASSETS ACQUIRED Modern 5,000 tonne winery and 41 hectare vineyard on 80 hectares in the heart of the Barossa Valley. Acquisition cost includes $8.1 $8 1 million of inventory. Grape grower contracts assigned. Iconic E&E and highly regarded Ebenezer and Barossa Valley Est
Slide 22: E&E Black Pepper Shiraz
E&E BLACK PEPPER SHIRAZ An icon wine of Australia. Australia Named in the top 25 Benchmark wines from Australia by Wine Spectator. Rated “Outstanding” in the Langton’s classification. Langton’s Classification of Australian Wine, the most famous and widely respected wine Classification outside of Eur
Slide 23: Barossa Valley Estate Growth Plans
BAROSSA VALLEY ESTATE GROWTH PLANS Icon brands E&E (RRP $A 100) and Ebenezer (RRP $A 40) will be marketed by the Group’s in‐market sales teams. Super Premium brand development project underway ‐ Targeting Q4 2014 launch. Long term sales plan 293,000 cases by 2019 (10% of global sales). 23
Slide 24: Agenda
AGENDA Business Performance – FY13 Investing for the Future Barossa Valley Estate Outlook 24
Slide 25: Delegat's Sales Growth - 2012 to 2019
Thousandss 9 Litre Casses DELEGAT’S SALES GROWTH – 2012 TO 2019 25
Slide 26: United Kingdom, Ireland and Europe
UNITED KINGDOM,, IRELAND AND EUROPE 26
Slide 27: United Kingdom, Ireland and Europe Region
UNITED KINGDOM, IRELAND AND EUROPE REGION 2014 is the first full year since price Cases increases in the United Kingdom and Ireland. Ireland Thousandss of 9 Litre C The Group will continue to focus on profitability in these markets. Sales volume is forecast to be stable with modest growth targ
Slide 28: Australia, New Zealand and Asia Pacific
AUSTRALIA, NEW ZEALAND AND ASIA PACIFIC 28
Slide 29: Australia, New Zealand and Asia Pacific Region
AUSTRALIA, NEW ZEALAND AND ASIA PACIFIC REGION Sales volumes are planned to return to Cases ggrowth in 2015. Thousandss of 9 Litre C The Group will establish an in‐market sales team in Japan and China this year. year Longer term sales growth in Asia and from Barossa Valley Estate underpins pro
Slide 30: North America
DELEGAT’S GROUP LIMITED NORTH AMERICA 30
Slide 31: North America Region
NORTH AMERICA REGION North America will be the key growth ases region g for the Group p over the next 6 Thousands of 9 Litre Ca years. Sales volumes are forecast to grow by 18% in 2014. 2014 Planned growth to 1.39 million cases by 2019 will provide significant in‐ T market distribution scale b
Slide 32: Thank You
DELEGAT’S GROUP LIMITED THANK YOU “ONSCOTBAY — 32