How Scion helps to build financially-viable businesses

1. 1 “We enable clients to build financially-viable businesses in less time.” Deborah Steinthal, Scion Advisors

2. During these complex times … Opportunity: Cup is half full, not half empty! In 2008, U.S. wine consumption up for 15th consecutive year 2/3rd of consumers spent the same for a bottle of wine 43% of restaurant diners wine orders remained the same Millennial wine consumption segment grew 23% Innovation (distribution, direct shipping, internet, social media) Next generation vintners Big money on the side lines 2

3. During these complex times … 3 Challenges: “It is no longer business as usual!” Consumption shift Flat/declining baby-boomer segments Competition: Large wineries, other states, other countries, beer and spirits, private/control labels Big pricing pressures Consolidation National distribution: broken for <100,000 case wineries Cost of business Increased costs: marketing, sales and capital Unknown tax and regulatory impacts

4. Demand for wine is not going away 4 The strong will get stronger Leveraging opportunity is not for the weak Fall out of the hobbyists (out of cash, work too hard) Maximize the value of your business Run business as if planning to sell Adopt the best practices Focus on cash flow: VALUE = CASH FLOW

6. We have walked in clients’ shoes and run businesses

7. Track record with over 100 companies across several industries

8. Proven approach to building stronger businesses

10. 7 Scion team Deborah Steinthal, General Management & Business Strategy Steinthalhas a track record across a variety of industries and helped companies large and small transition from startup through high growth; restructure due to poor performance; and integrate new acquisitions. Driving higher performance and building businesses that are worth more, Steinthal has worked in executive positions at Lockheed Martin, Oracle, and with over 100 companies globally. Erica Valentine, Go-To-Market Strategy Valentine is a leader in strategic marketing: creating and implementing marketing and sales programs that work. At Constellation Wines, she grew a luxury business line from 45 to over 90 million dollars. At Seagram Chateau & Estates, she worked extensively with major international brands such as Champagne Mumm and Sandeman Port. She has over 10 years consulting experience, working for large and small wineries, venture capital and web-based businesses. Valentine advises companies on how to differentiate and compete successfully in a complex marketplace. Hank Salvo, CFO/ Financial Strategy & Governance Salvo’sskills and expertise in finance, accounting, planning and governance supported his rise to senior financial management as vice president finance and vice president controller at the consumer goods giant Clorox Company. Salvo transferred these skills to the wine industry joining Robert Mondavi Corporation as its CFO in 2000. Since 2005, Salvo advises family wine business owners across as variety of issues such as strategic planning, succession planning, and governance. Rosemary Richardson, Leadership & Management Development Richardsonis dedicated to helping leaders advance business performance during times of unprecedented change. A seasoned executive coach, Richardson is experienced at conflict management and working in partnership with CEOs and their teams to build the leadership skills required to win in the marketplace. As Vice President Human Resources for Johnson & Johnson and Applied Materials, Richardson developed a keen understanding of the challenges of global business and development of leadership and human capital.

11. 8 Scion approach Proven process: a framework that delivers results

12. Develop a framework for the future Preparing for exit: transaction readiness Preparing for business growth Preparing for generational continuity 9

13. Transaction readiness 10 ROA, ROI, EBITDA, ROL Business owner

14. Preparing for growth 11 Align Vision & Goals Framework for driving decisions Get the team aligned and connect the dots between strategy and execution Goals Execution Functional Action Plans

15. Scion competencies 12

16. Case study #1 13 Preparing a north coast business for profitable growth Problem: Channel consolidation and supply realities perpetuates lagging profitability in national sales. Approach: Develop focused, consistent market strategy focused on margin improvement. Decision: Reposition the business to grow profitably thru the right product and channel mix; sharpen brand identity across all channels. Results: Reposition business leads to 50% growth in net operating income produced through realigned national product mix; stronger brand attracting more profitable customers.

17. Case study #2 14 Road map for portfolio growth Problem: Client has outgrown its old channel and product strategy. Approach: Create a road map for growth and cash-out options. Decision: Relaunch business as a portfolio of separate brands each focused on high margin opportunities. Results: EBITDA CAGR growth > 20% over 5 years; flexible exit strategy; stable organization driving solid decision making and communications; leadership team incentivized to perform as owners.

19. Brown Forman

20. Cakebread Cellars

21. Domaine Carneros

22. Far Niente Winery

23. Goosecross Cellars

24. Gundlach Bundschu Winery

25. Hanzell Vineyards

26. J Wine Co.

27. Luna Vineyards

28. Patz & Hall Wine Co.

29. Rodney Strong Vineyards

30. Seghesio

31. Silver Oak Cellars

32. Six Sigma Ranch

33. Spottswoode Estate

34. Viader

35. Windsor Vineyards

36. Several large wine companies“Scion gave us the courage and the reason to believe that we can do it." Tim Wallace, President Benziger Family Vineyards