CONTENTS

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Premium Report

IBISWorld Company Report

Accolade Wines Holdings
Australia Pty Limited

Premium Report

Balance Date: 30 June 2014

Details ....................................................................................................................................... 2
Introduction........................................................................................................................................ 2
History/Background ........................................................................................................................... 3
Brands/Businesses/Products ............................................................................................................. 3
Company Snapshot ........................................................................................................................... 4
Personnel.................................................................................................................................. 5
Other Directorships ................................................................................................................. 5
Financials ................................................................................................................................. 6
Financial Growth ...................................................................................................................... 8
Financial Ratios ....................................................................................................................... 8
Industry Financial Averages ................................................................................................... 9
Segments ................................................................................................................................ 10
Operating Divisions ......................................................................................................................... 10
Geographic Locations ...................................................................................................................... 10
Competitive Environment...................................................................................................... 11
Shareholders .......................................................................................................................... 13
Subsidiaries............................................................................................................................ 14
Service Providers ................................................................................................................... 15

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WWW.IBISWORLD.COM.AU Accolade Wines Holdings Australia Pty Limited 2

Details
Company Details
Major Business Line C1214 - Wine Production in Australia
ACN Number 103 359 299
ABN Number 56 103 359 299
ASX Code
Incorporated In Australian Capital Territory
Incorporation Date 13/01/2003
Company Type Proprietary Company
Ownership Type Foreign
Sector Non Government
Listed on Stock Exchange? No
FY Balance Date 30-Jun-2014
IBISWorld Rank* 755

Company Contact Details

Company Registered Name Accolade Wines Holdings Australia Pty Limited
Commonly Used Name Accolade Wines

Street Address
Floor
Street Reynell Road
City REYNELLA
State South Australia
Post Code 5161
Country Australia

Postal Address
PO Box
Post Office
City
State
Post Code
Telephone Number 08 8392 2222
Facsimilie Number 08 8392 2202
Internet Web Address www.accolade-wines.com

Introduction
Accolade Wines Holdings Australia Pty Limited is a foreign-owned proprietary company that operates as the holding company
for Accolade Wines Australia. Accolade Wines Australia is a producer, marketer, exporter and seller of wine. The company
employs approximately 860 people, operates in Australia, New Zealand, the UK, Europe, Asia and South Africa, and is
headquartered in Reynella, South Australia.
Accolade Wines Holdings Australia is a subsidiary of Sydney-based private equity firm, CHAMP Private Equity.
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History/Background
2015 - February: Accolade Wines completed the acquisition of Grant Burge Wines, based in South
Australia's Barossa Valley, for a cash consideration of approximately $50 million. The purchase
includes the Grant Burge brand, Burge and Rathbone Fine Wine Merchants and the Krondorf Winery.

2014 - April: The company purchased a range of New Zealand wine brands from the Mud House Wine
Group.

2012 - August: Accolade Wines launched its Hardys brand in the Ukraine.
June: Accolade Wines acquired Californian brands Geyser Peak, Atlas Peak and XYZin for a cash
consideration of approximately $40m. The acquisition includes Geyser Peak's winery property in
California.

2011 - June: The company was renamed Accolade Wines Holdings Australia Pty Limited.
March: CBI Australia announced the sale of its 50% share of Barossa Valley Estates to its joint venture
partner Barossa Growers Holdings.
February: Constellation Wines announced it would change its name to Accolade Wines. The name
change will take effect from July 2011.

2010 - December: The company's ultimate parent, Constellation Brands Inc, sold 80% of its Australian
and UK Business to Champ Private Equity for approximately $230 million. The transaction was
completed in February 2011.
November: Constellation Brands Inc was delisted from the ASX and trading in its Chess Depositary
Interests securities ceased.
August: The company sold Amberley Estate for $5 million.
July: Constellation Australia announced that it would be making a number of operational
improvements which include downsizing its production and supply chain.

2008 - August: Constellation Australia announced a major restructure of its business which involved
the sale of production facilities and vineyard properties, consolidation of bottling operations and
streamlining of its product portfolio.
April: Associate company, Medallion Wine Marketing Inc, became a wholly-owned subsidiary of the
company after the remaining 50% shareholding was purchased for CAD$12.7 million.
March: The Hardy Wine Company became known as Constellation Australia Limited.

2007 - Vincor Australia Pty Ltd became a subsidiary of the company, after the acquisition of Vincor
International Inc by ultimate parent, Constellation Brands Inc.

2003 - Constellation Brands Inc acquired BRL Hardy, which became known as the Hardy Wine
Company. CBI Australia Holdings Pty Limited was incorporated in the ACT, as a holding company for
the Australian operations of Constellation Brands Inc.

1992 - BRL Hardy was formed through the merger of two Southern Australian wine companies, Berri
Renmano Limited and Thomas Hardy & Sons Pty Ltd.

Brands/Businesses/Products
Accolade Wines Holdings Australia Pty Limited acts as a holding company for Accolade Wines'
Australian wine businesses. The group operates wineries in Tasmania, Victoria, South Australia and
Western Australia.

The company's brands are:

 Babycham
 Bud Naked
 Banrock Station
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 Bay of Fires
 Brookland Valley
 Chateau Reynella
 Echo Falls
 Fish Hoek
 Flagstone Wines
 FreshCase
 Goundrey
 Gran Tierra
 Hardys
 Houghton
 Kumala
 Leasingham
 Moondah Brook
 Omni
 Ravenswood
 Redman
 Renmano
 Stanley Wines
 Starvedog Lane
 Stone's Ginger Wine
 Tintara
 Yarra Burn
 Mud House
 Waipara Hills
 Monkey Bay
 Kim Crawford
 Jack Rabbit
 Ginger Joe
 Taku

Company Snapshot
Accolade Wines Holdings Australia Pty Limited is a Proprietary Company that is ranked
number 755 out of the top 2000 companies in Australia. The company generates the majority of its
income from the Wine Production in Australia industry.

In 2014 the company generated total revenue of $456,902,000 including sales and other
revenue. In 2014 Accolade Wines Holdings Australia Pty Limited had 858 employees in Australia
including employees from all subsidiaries under the company's control.

The Chief Executive of Accolade Wines Holdings Australia Pty Limited is Mr John Ratcliffe whose
official title is Chief Executive Officer. The Chairman of Accolade Wines Holdings Australia Pty
Limited is either not applicable or not available.
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Personnel
Salutation Initials Full Name Title Position Type
Not Appointed Chairman Chairman
Mr J John Ratcliffe Chief Executive Officer* Chief Executive
Mr S Steven Gorst Chief Operating & Financial Officer Financial Controller
Chief Operating
Mr M Michael East General Manager ANZ
Officer
Chief Operating
Mr S Steven Gorst Chief Operating & Financial Officer
Officer
Non-Executive
Mr J Jim Anderson Non-Executive Director*
Director
Non-Executive
Mr P Paul Hetterich Non-Executive Director*
Director
Non-Executive
Mr JC Joel Thickins Non-Executive Director*
Director
Non-Executive
Mr JR John Haddock Non-Executive Director*
Director
Nicholas Non-Executive
Mr NF Non-Executive Director*
Grenier Director
Jeremy
Mr JAM Company Secretary Company Secretary
Stevenson
Jeremy
Mr JAM General Counsel Legal Officer
Stevenson
Mr B Bruno Sirianni Business Development Manager Sales Manager
Mr B Brad Camer Marketing Director Marketing Manager
Procurement
Ms M Meg Molenaar Regional Procurement Manager
Manager
Head of Corporate Human Resources,
Ms L Leah Harris Personnel Manager
Asia Pacific
Computing/IT
Mr D Dean Holt IT Director
Manager
Not Available Audit Committee Audit Committee
* Appointed to the Board of Directors

Other Directorships
Name Company Position Title
Mr Joel Thickins Lighting Investments Australia Holdings Pty Limited Chairman
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Financials
Balance Date 30-Jun-2014 30-Jun-2013 30-Jun-2012 30-Jun-2011 28-Feb-2010
Accounting Period Date 12 Months 12 Months 12 Months 16 Months 12 Months
Reported Currency AUD AUD AUD AUD AUD
Currency Units AUD000 AUD000 AUD000 AUD000 AUD000
PROFIT AND LOSS ACCOUNT
REVENUE ITEMS
Sales Revenue 442,429 405,796 417,394 600,496 563,862
Other Revenue 14,473 9,660 21,350 65,735 50,780
Total Revenue 456,902 415,456 438,744 666,231 614,642
Cost of Goods Sold 289,334 293,941 287,971 472,046 459,469
Depreciation 7,896 7,159 6,448 9,604 27,029
R&D Expenditure N/A N/A N/A N/A N/A
INTEREST
Interest Received 129 142 814 6,050 1,382
Interest Expense 17,950 15,609 13,376 48,688 55,574
PROFIT AND LOSS
Share of Profits of Associates N/A N/A N/A 0 36
EBITDA 42,328 -8,248 29,004 -19,410 -258,624
Profit Before Tax 16,611 -30,874 9,994 -71,652 -339,845
Income Tax Expense 14,440 3,869 17,758 -77,723 -6,828
Continuing Operations after
2,171 -34,743 -7,764 6,071 -333,017
Tax
Discontinued Operations after
N/A N/A N/A N/A N/A
Tax
Outside Equity Interest -62 -232 -44 0 0
NPAT 2,233 -34,511 -7,720 6,071 -333,017
Significant Items 0 0 0 0 0
Dividends 0 0 0 0 0
AUDIT
Audit Fees N/A N/A N/A N/A 606
Audit Other N/A N/A N/A N/A 104
Total Audit Fees N/A N/A N/A N/A 710
BALANCE SHEET
CURRENT ASSETS
Cash At Bank 9,014 5,597 8,074 3,759 418
Trade Debtors 80,998 79,431 91,574 80,963 64,759
Inventory 314,108 292,032 285,641 261,901 369,537
Other Current Assets 33,462 28,435 53,614 49,917 74,732
Total Current Assets 437,582 405,495 438,903 396,540 509,446
NON-CURRENT ASSETS
Receivables 2,721 4,296 3,084 17,610 115,911
Investments 351 1 1 1 1
Property & Plant Equipment 87,131 90,218 97,052 96,127 106,374
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Intangible Assets 26,117 28,029 9,700 5,036 14,217

Other Non-Current Assets 48,806 62,179 66,343 83,758 21,714
Total Non-Current Assets 165,126 184,723 176,180 202,532 258,217
Total Assets 602,708 590,218 615,083 599,072 767,663
CURRENT LIABILITIES
Trade Creditors 66,465 60,571 67,486 51,046 65,462
Interest Bearing Debt 0 0 0 105,698 582,040
Provisions 11,101 11,622 15,539 16,564 15,129
Other Current Liabilities 74,190 50,995 51,708 45,113 193,580
Total Current Liabilities 151,756 123,188 134,733 218,421 856,211
NON-CURRENT LIABILITIES
Interest Bearing Debt 187,193 191,072 176,796 87,050 0
Provisions 972 1,310 1,773 3,103 4,496
Other Non-Current Liabilities 32,872 25,937 16,645 4,605 2,675
Total Non-Current
221,037 218,319 195,214 94,758 7,171
Liabilities
Total Liabilities 372,793 341,507 329,947 313,179 863,382
SHAREHOLDERS' EQUITY
Share Capital 270 22,188 21,897 20,706 1,352,263
Reserves 1,022 1,722,365 1,724,338 1,718,582 11,484
Retained Earnings 228,623 -1,495,626 -1,461,115 -1,453,395 -1,459,466
Other 0 -216 16 0 0
Total Equity 229,915 248,711 285,136 285,893 -95,719
OTHER
Number of Employees 858 960 N/A N/A N/A
Qualified Audit Report No No No No No

* IBISWorld estimate
** Financials have been converted from AUD to AUD using the exchange rate as at the latest balance
date
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Financial Growth
Balance Date 30-Jun-2014 30-Jun-2013 30-Jun-2012 30-Jun-2011
Total Revenue Growth
10.0 -5.3 N/A N/A
(% change)
Sales Revenue Growth
9.0 -2.8 N/A N/A
(% change)
EBITDA (% change) N/A -128.4 N/A N/A
NPAT (% change) N/A N/A N/A N/A
Shareholders' Funds
-7.6 -12.8 N/A N/A
(% change)
Total Assets (% change) 2.1 -4.0 N/A N/A
Employees (% change) -10.6 N/A N/A N/A

Financial Ratios
Balance Date 30-Jun-2014 30-Jun-2013 30-Jun-2012 30-Jun-2011 28-Feb-2010
Return on Revenue (ROR)
0.5 -8.3 -1.8 0.9 -54.2
(%)
Return on Shareholders'
1.0 -13.9 -2.7 2.1 347.9
Funds (ROSF) (%)
Return on Assets (ROA) (%) 0.4 -5.9 -1.3 1.0 -43.4
Profit Margin (%) 3.8 -7.6 2.4 -11.9 -60.3
Revenue per Employee
532.5 432.8 N/A N/A N/A
($'000 per person)
NPAT per Employee ($'000
2.6 -36.0 N/A N/A N/A
per person)
Effective Tax Rate (%) 86.9 N/A 177.7 N/A N/A
Gearing (%) 61.9 57.9 53.6 52.3 112.5
Interest Cover (X) 1.9 -1.0 1.8 -0.5 -5.1
Current Ratio (X) 2.9 3.3 3.3 1.8 0.6

Revenue & NPAT Key Measures (% change)

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Industry Financial Averages

Industry Accolade Wines
Financial Ratios Unit
Average* 30-Jun-2014
Return On Shareholders Funds 3.23 0.97 Percent
Return On Total Assets 1.79 0.37 Percent
Gearing 44.61 61.85 Percent
Interest Cover 2.32 1.93 Times
Current Ratio 1.25 2.88 Times
NPAT/Employee 22 3 A$ 000
Pre-Tax Margin 5.63 3.64 Percent
EBITDA 217,946 42,328 A$ 000
Effective Tax Rate 27.19 86.93 Percent
Days Stock Held 64.86 396.25 Days
Debtors T/O 56.77 64.71 Days
Creditors T/O 34.55 83.85 Days
Revenue/Employee 548 533 A$ 000
Net Assets Per Share 0.97 8.56 A$
Dividend Per Share 0.04 0.00 A$
Earnings Per Share 0.04 0.08 A$
Dividend Payout Ratio 145.65 0.00 Percent
Asset Turnover Ratio 0.42 0.73 Times

Industry Accolade Wines

Growth Ratios Unit
Average* 30-Jun-2014
Revenue Growth 0.78 9.98 Percent
NPAT Growth -417.25 N/C Percent
Asset Growth -0.27 2.12 Percent
Employees Growth -1.60 -10.63 Percent
Dividend Growth Rate -4.60 N/C Percent
*Companies included in the Industry Averages Calculations operate in the Beverage and Tobacco
Product Manufacturing in Australia industry.
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Segments

Balance Date: 30 June, 2014

Profit Definition: Profit Attributable to Owners of the Company

** Financials have been converted from AUD to AUD using the exchange rate as at the latest balance
date
Operating Divisions
Revenue Profits Assets
Segment Name
AUD000 AUD000 AUD000
Wine & Wine Products 456,902 2,233 602,708

Operating Divisions - Key Ratios

Profit as Profit as
Segment Name
% of Revenue % of Assets
Wine & Wine Products 0.5% 0.4%
Company 0.5% 0.4%

Operating Divisions - Industries by Operating Segment

Historical Forecast
Growth Rates Growth Rates
2011/12-2015/16 2016/17-2020/21
Wine & Wine Products
C1214 - Wine Production in Australia 0.2% 2.0%
F3606a - Liquor Wholesaling in Australia 0.9% 1.3%
GDP Growth Rate 2.8% 2.7%

Geographic Locations
Revenue Profits Assets
Segment Name
AUD000 AUD000 AUD000
Australia 456,902 2,233 602,708
Total 456,902 2,233 602,708

Geographic Locations - Ratios

Profit as Profit as
% of Revenue % of Assets
Australia 0.5 0.4
Company 0.5 0.4
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Competitive Environment

C1214 Wine Production in Australia

Industry Statistics
Industry Size 2015/2016 $ million 5,339
Industry Turnover Growth Rate 2015/2016 2.05
Industry Concentration Level Low
Estimated Accolade Wines Market Share
9.40
(%)
Number of Enterprises in Industry 1812

Accolade Wines Holdings Australia Pty Limited was founded in 1853 as Hardy Wine Company. The
Adelaide winery grew to become the largest in South Australia. In 2003, after being acquired by
Constellation Brands, Inc. (CBI), the company renamed itself Constellation Australia and incorporated
both Constellation Wines Australia and Europe (CWAE), which held the Australian, UK and South
African wine assets formerly owned by US-based wine producer CBI. In January 2011, CBI agreed to
sell 80.0% of CWAE to Sydney-based CHAMP Private Equity for $230.0 million. CBI retained a 20%
interest in the company. In July 2011, the company changed its name to Accolade Wines.

Accolade Wines owns a number of wineries in Australia including Hardys, Stanley Wines, Houghton
Wines, Renmano, Omni, Banrock Station, Brookland Valley and Emu Wines. Formerly the largest wine
producer in Australia, Accolade has chosen to focus on its assets in the United States, where it is
attempting to improve profitability by entering the premium wine market.

In early 2010, the company made 40 staff redundant at its South Australian bottling headquarters as it
shifted more of its production to the United Kingdom to cope with the global wine slump. It also
announced 30 redundancies at its Tintara winery, marking the second round of redundancies for the
year. In 2012, Accolade Wines and Treasury Wine Estates (TWE) reached a bottling agreement,
whereby TWE will bottle wine for Accolade in Australia and Accolade will bottle for TWE in the UK
market. During 2012, the company cut 175 jobs as a result of the bottling deal with TWE.

Financial performance

Company revenue for Accolade Wines is forecast to contract by 5.4% annualised over the five years
through 2014-15, underperforming the overall industry. The four years through 2012-13 were
characterised by challenging economic conditions in both the local economy and key export markets,
and the oversupply of grapes in Australia lowered wine prices and profitability. Revenue growth was
recorded in 2010-11, though this was due to a longer financial year as the company changed its
reporting date. Accolade Wines underwent heavy restructuring in 2011-12, forming strategic
partnerships with other wine producers. Lay-offs and divestments in that year are expected to have
caused the 34.1% decline in revenue. However, this also contributed to the company’s first recorded
profit in over five years. A projected depreciation of the Australian dollar over the two years through
2014-15 is expected to stimulate revenue growth and improve profitability, which has fluctuated over
the past five years.

Accolade Wines Holdings Australia Pty Limited - financial performance

Revenue Growth EBIT

Year $ million % change $ million
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2010-11 666.2 N/C -29.2

2011-12 438.7 -34.1 22.5
2012-13 415.5 -5.3 -15.2
2013-14 456.9 10.0 34.4
2014-15* 475.5 4.1 N/A
2015-16* 501.5 5.5 N/A
SOURCE: Annual Report and IBISWorld
Note: *Estimate

Major Competitors Market Share

Treasury Wine Estates Limited 11.90
Pernod Ricard Pacific Holding Pty
10.10
Ltd
Accolade Wines Holdings Australia
9.40
Pty Limited
Casella Wines Pty Limited 7.90

F3606a Liquor Wholesaling in Australia

Industry Statistics
Industry Size 2015/2016 $ million 5,124
Industry Turnover Growth Rate 2015/2016 1.40
Industry Concentration Level High
Number of Enterprises in Industry 2006

Accolade Wines is not a major player in this industry.

Major Competitors Market Share

Metcash Limited 70.70
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Shareholders
Shareholder Name Percentage Held Country of Incorporation
Ultimate Parent
Champ Buyout III Pte Limited N/A Singapore

Largest Shareholders
P T Limited 33.22 % Australia
Champ Buyout III Pte Limited 31.67 % Singapore
Perpetual Trustee Company Limited 24.86 % Australia
Perpetual Corporate Trust Limited 10.25 % Australia

As at: 16 July, 2014

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Subsidiaries
Subsidiary Name Percentage Held Country of Incorporation
Holding company
Accolade Wines Holdings Australia Pty Ltd 100 % Australia

Subsidiaries
Accolade Wines Australia Limited 100 % Australia
Accolade Wines Holdings China Ltd 100 % Hong Kong
Accolade Wines Japan KK 100 % Japan
Accolade Wines New Zealand Ltd 100 % New Zealand
Accolade Wines North America Inc 100 % United States of America
Accolade Wines Western Australia Pty Ltd 100 % Australia
Amberley Estate Pty Ltd 100 % Australia
BRL Hardy Finance Pty Ltd 100 % Australia
Brookland Valley Estate Pty Ltd 100 % Australia
Goundrey Wines Pty Ltd 100 % Australia
GSI Holdings Pty Ltd 100 % Australia
Houghton Wines (Western Australia) Pty Ltd 100 % Australia
Shanghai CWC Wine Trading Co Ltd 100 % China
Stanley Wine Company Pty Ltd 100 % Australia
Thomas Hardy Hunter River Pty Ltd 100 % Australia
WA Winegrowers Association Pty Ltd 100 % Australia

Balance Date: 30 June, 2014

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Service Providers
Service Provider Type Service Provider
Banker Not available
External Auditor KPMG
Insurance Broker Not available
Solicitor Not available
Telecommunication Not available

Balance Date: 30 June, 2014

* IBISWorld’s company information covers more than 2,000 of the country’s largest businesses, which
drive Australia’s economy. The companies are ranked based on total revenue earned in the most
recently reported financial year. All company types, such as public listed, public non-listed, private
companies and more, are listed in our database. The IBISWorld rank is updated daily.
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Accolade Wines Holdings Australia Pty Limited

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