6 questions lodged at 2023 Australian Vintage AGM

November 23, 2023

Below is the text of the 6 written questions lodged at the 2023 Australian Vintage hybrid AGM held on November 22. Proxies were disclosed early with the formals and there were no protest votes.

Q1. Has the demerger of Endeavour Group from Woolworths had any impact on Australian Vintage? Roughly what proportion of our Australian sales go through Endeavour and is this rising or falling? Also, isn't it a conflict of interest for Endeavour to be both a wine producer and Australia's biggest wine retailer? Do they prioritise their own wines ahead of ours?

Q2. The audited accounts claim we have net assets of $291 million yet our market capitalisation is down to $104 million. Could EY audit signing partner Mark Phelps please explain why his assessment of our assets is so divergent to the broader market. Also, why is the audit run out of EY's Adelaide office and could the CFO explain whether there are any book value covenants in our lending facilities which would be triggered by material write-downs? Who are our major lenders and how supportive have they been of late?

Q3. Thank you for disclosing the proxy position to the ASX along with the formal addresses and well done for hosting a hybrid AGM this year, a move which maximises retail shareholder participation. Will you continue this into the future and also undertake to make a full copy of the AGM webcast available on the company website? Also well done for the the strong voting support in favour of both items of business today. Keep up the good transparency and AGM governance.

Q4. When disclosing the outcome of voting on both resolutions today, including Peter Perrin's re-election, could you please advise the ASX how many of our 5000 shareholders voted for and against each item, similar to what happens with a scheme of arrangement? This will provide a better gauge of retail shareholder sentiment and was a voluntary disclosure initiative adopted by the likes of ASX, Qantas, Metcash, Dexus, Webjet, Tabcorp and Myer over the past 3 years. Also, we have an unusual share register with our 3 biggest shareholders - Allan Gray, Vintage China Fund and MA Financial Group - collectively owning 45% of our 252 million ordinary shares. Why are they so heavily invested in us and what dealings do we have with each of them?

Q5. Most AGMs have a resolution approving an LTI grant for the CEO. What aren't we doing that as part of our remuneration policies and what level of share ownership do we have across our employee base to create alignment with our 5,000 shareholders who have had a rough time over the longer term considering that the stock peaked at almost $6 in late 2004 and is now down at 42c. Why isn't anyone launching a takeover bid with our shares so cheap. Have Endeavour Group ever expressed interest in buying us?

Q6. What discounts to the recommended retail price do the directors get when buying our wine? Does the same deal apply to our senior executives and the regular staff and are there any differences in the terms for wine purchasing for directors, executives and staff located in different geographies?