FY17 RESULTS
28 August 2017
Introduction to meeting. Business Performance – 2017 Year under review. Investing for the Future. Delegat Outlook.
AGENDA
2
Record global case sales of 2,656,000.
10% higher than last year.
Record Operating NPAT of $38.5 million.
6% higher than last year.
Record harvest – 37,355 tonnes.
Record cash flows from operations of
$59.2 million.
Dividend increased on strong operational
performance and cash flows – 13.0 cents.
PERFORMANCE HIGHLIGHTS
3
CASE SALES AND FX
4
Case Sales (000's)Jun 2017
Actual
Jun 2016
Actual
% Change
vs 2016
UK, Ireland and Europe 736 694 6%
North America (USA and Canada) 1,135 1,012 12%
Australia, NZ and Asia Pacific 785 705 11%
Total Cases 2,656 2,411 10%
Foreign Currency RatesJun 2017
Actual
Jun 2016
Actual
% Change
vs 2016
GB£ 0.5262 0.4675 -13%
AU$ 0.9374 0.9140 -3%
US$ 0.7056 0.6855 -3%
CA$ 0.9359 0.8796 -6%
REVENUE GROWTH ANALYSIS
5
NZ$ millionsJun 2017
Actual
Jun 2016
Actual
% Change
vs 2016
Operating Revenue 247.7 240.0 3%
Revenue movements breakdown:
Volume 10%
Value -7%
Foreign Exchange -4%
Underlying Price/Product Mix -3%
OPERATING PERFORMANCE
6
NZ$ millionsJun 2017
Actual
Jun 2016
Actual
% Change
vs 2016
Sales Revenue 247.7 240.0 3%
Operating Revenue 251.3 242.7 4%
Operating Gross Profit 134.0 125.7 7%
Operating Gross Margin 53% 52%
Operating Expenses (66.7) (65.4) -2%
Operating EBIT 67.3 60.3 12%
Operating EBIT % of Revenue 27% 25%
Interest and Tax (28.8) (24.1) -19%
Operating NPAT 38.5 36.2 6%
Operating NPAT % of Revenue 15% 15%
Operating EBITDA 81.1 73.0 11%
Operating EBITDA % of Revenue 32% 30%
OPERATING PROFIT MOVEMENT – LAST YEAR
7
NZ $millions
20.0
24.0
28.0
32.0
36.0
40.0
44.0
48.0
52.0
56.0
60.0
Jun 2016 Actual Margin impact Promotion costs Net FX Impact Interest Other Jun 2017 Actual
$0.0m
($2.6m)
$36.2m$38.5m
($12.9m)
$20.3m
($2.5m)
IMPACT OF ‘FAIR VALUE’ ADJUSTMENTS
8
NZ$ millionsJun 2017
Actual
Jun 2016
Actual
% Change
vs 2016
Operating NPAT 38.5 36.2 6%
Operating NPAT % of Sales 13% 13%
Biological Produce (Grapes) 1 1.6 11.8 -87%
Derivative Instruments 1.4 4.7 -71%
Total Fair Value Items 3.0 16.5 82%
Less: Tax (0.8) (4.6) 82%
Fair Value Items after Tax 2.2 11.9 80%
Reported NPAT 40.7 48.1 -15%
1. Biologica l Produce (Grapes) i s the di fference between market va lue paid for grapes versus the cost to grow grapes . The harvest
provis ion is reversed and only recognised when the finished wine is sold.
REPORTED PROFIT MOVEMENT – LAST YEAR
9
NZ $millions
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Jun 2016 Actual Margin impact Promotion costs Net FX Impact Interest Other Jun 2017 Actual
$0.0m
($11.3m)
$48.1m
$40.7m($12.9m)
$13.0m
$3.8m
BALANCE SHEET SUMMARY
10
NZ$ millionsJun 2017
Actual
Jun 2016
Actual
% Change
vs 2016
Assets
Current Assets 171.4 178.6 -4%
Fixed Assets 482.9 456.9 6%
Total Assets 654.3 635.5 3%
Liabilities
Current Liabilities 34.3 36.9 -7%
Deferred Tax Liabilities 31.1 28.8 8%
Net Debt 278.0 282.7 -2%
Other Non-current Liabilities 3.8 7.1 -47%
Total Liabilities 347.2 355.5 -2%
Equity
Shareholders' Equity 307.1 280.0 10%
Total Equity 307.1 280.0 10%
Total Liabilities and Equity 654.3 635.5 3%
NET DEBT MOVEMENT
11
NZ $millions
150.0
160.0
170.0
180.0
190.0
200.0
210.0
220.0
230.0
240.0
250.0
260.0
270.0
280.0
290.0
June 2016Actual
Cash fromOperations
Working Capital Capex Dividend FX June 2017Actual
$1.0m
$41.4m
$282.7m$278.0m
($4.5m)($54.7m)
$12.1m
NET DEBT OVERVIEW
12
NZ$ millionsJun 2017
Actual
Jun 2016
Actual
% Change
vs 2016
Funding
Operating Cash Flow 59.2 42.5 39%
Net Debt 278.0 282.7 2%
Key Ratios
Operating Profit Measures
Interest Cover 5.14 6.26 -18%
Return on Equity1 15.1% 15.6% -3%
Return on Capital Employed2 12.6% 12.7% -1%
Reported Profit Measures
Interest Cover 5.37 7.93 -32%
Equity / (Equity + Net Debt) % 52.5% 49.8% 5%
Return on Equity 13.9% 18.3% -24%
Return on Capital Employed 12.2% 15.2% -20%
1. Return on Equity (Operating) excludes all fair value items from both NPAT and Assets/Liabilities.
1. Return on Capital Employed (Operating) excludes all fair value items from both EBIT and Assets/Liabilities.
NZ Harvest was a record 34,595 tonnes:
- delivered very good quality; - was 4% higher than last year. Barossa Valley Harvest was 2,760
tonnes: - one of the best of recent times; - was 6% higher than last year.
2017 HARVEST
13
Introduction to meeting. Business Performance – 2017 Year under review. Investing for the Future. Delegat Outlook.
AGENDA
14
15
2015: Includes vineyard developments in Hawke’s Bay, Marlborough and Barossa Valley, construction of Hawke’s Bay Winery, expansion of Marlborough winery.
2016: Includes vineyard developments in Hawke’s Bay, Marlborough and Barossa Valley, completion of Hawke’s Bay Winery, land acquisition in New Zealand and Australia.
2017: Includes vineyard and winery developments in Hawke’s Bay, Marlborough and Barossa Valley.
2018: Includes vineyard and winery developments in Hawke’s Bay, Marlborough and Barossa Valley, and winery development in Auckland.
INVESTING IN GROWTH - CAPITAL EXPENDITURE UPDATE
Mil
lio
n o
f $
0
20
40
60
80
100
120
2014 2015 2016 2017 2018
30
79
114
40 46
Introduction to meeting. Business Performance – 2017 Year under review. Investing for the Future. Delegat Outlook.
AGENDA
16
DELEGAT SALES GROWTH 2015 - 2022
17
Th
ou
san
ds
9 L
itre
Ca
ses
0
500
1000
1500
2000
2500
3000
3500
4000
2015 2016 2017 2018 2019 2020 2021 2022
2,210 2,411
2,656 2,782
3,021
3,333 3,504
3,685
Case Sales (000's)
2017
Actual
2018
Forecast
2019
Projection
2020
Projection
2021
Projection
2022
Projection
UK, Ireland and Europe 736 680 680 699 718 725
North America (USA and Canada) 1,135 1,304 1,512 1,765 1,895 2,047
Australia, NZ and Asia Pacific 785 798 829 869 891 913
Total Cases 2,656 2,782 3,021 3,333 3,504 3,685
FY18 Operating Profit Guidance
18
The Group faces risks in the form of exchange rate volatility which make it difficult to accurately forecast financial performance. Based on budget exchange rates, the Group forecasts a 2018 operating profit result at least in line with this year's record performance.
Foreign Currency Rates 2018
GB£ 0.5666
AU$ 0.9577
US$ 0.7210
CA$ 0.9705
Thank you