DGL – 2017 Interim Results 31-Dec 16 Presentation

HALF-YEAR RESULTS
FY17


27 February 2017

Introduction to meeting.


Business Performance – Half Year
review.


Outlook.


AGENDA
2

Global case sales of 1,446,000
-Up 179,000 cases on last year (14%).

Volume growth in all regions.

Record Operating NPAT of $24.7 million
-Up $3.6 million on last year (17%)

Strong cashflows from operations.

PERFORMANCE TO DATE
3

CASE SALES
4
Case Sales (000's)
Dec 2016
Actual
Dec 2015
Actual
% Change
vs 2015
UK, Ireland and Europe449 384 17%
North America (USA and Canada)518 476 9%
Australia, NZ and Asia Pacific479 407 18%
Total Cases1,446 1,267 14%

REVENUE GROWTH ANALYSIS AND FX
5
NZ$ millions
Dec 2016
Actual
Dec 2015
Actual
% Change
vs 2015
Operating Revenue135.8 128.6 6%
Sales movements breakdown:
Volume14%
Value-8%
Foreign Exchange-6%
Underlying Price/Product Mix-2%
Foreign Currency Rates
Dec 2016
Actual
Dec 2015
Actual
% Change
vs 2015
GB£0.5396 0.4451 -21%
AU$0.9428 0.9224 -2%
US$0.7132 0.6503 -10%
CA$0.9438 0.8759 -8%

OPERATING PERFORMANCE
6
NZ$ millions
Dec 2016
Actual
Dec 2015
Actual
% Change
vs 2015
Operating Revenue135.8 128.6 6%
Operating Gross Profit76.7 72.0 6%
Operating Gross Margin56%56%
Operating Expenses(35.3) (38.2) 8%
Operating EBIT41.4 33.8 22%
Operating EBIT % of Revenue30%26%
Interest and Tax(16.7) (12.7) -31%
Operating NPAT24.7 21.1 17%
Operating NPAT % of Revenue18%16%
Operating EBITDA48.5 40.8 19%
Operating EBITDA % of Revenue36%32%

OPERATING PROFIT MOVEMENT – LAST YEAR
7
NZ $millions
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
22.0
24.0
26.0
28.0
30.0
32.0
34.0
36.0
38.0
Dec 2015
Actual
Margin impactPromotion costsNet FX ImpactInterestOtherDec 2016
Actual
$0.6m
($1.0m)
$21.1m
$24.7m
($7.9m)
$13.7m
($1.8m)

IMPACT OF ‘FAIR VALUE’ ADJUSTMENTS
8
NZ$ millions
Dec 2016
Actual
Dec 2015
Actual
% Change
vs 2015
Operating NPAT24.7 21.1 17%
Operating NPAT % of Revenue18%16%
Biological Produce (Grapes)
1
(8.3) (4.8) -73%
Derivative Instruments 0.6 5.4 -89%
Total Fair Value Items(7.7) 0.6
n/m
2
Less: Tax 2.1 (0.2)
n/m
2
Fair Value Items after Tax (5.6) 0.4
n/m
2
Reported NPAT19.1 21.5 -11%
2. n/m me a ns not me a ni ngful .
1. Bi ol ogi ca l Produce (Gra pe s ) i s the di ffe re nce be twe e n ma rke t va l ue pa i d for gra pe s ve rs us the cos t to grow gra pe s . The ha rve s t
provi s i on i s re ve rs e d a nd onl y re cogni s e d whe n the fi ni s he d wi ne i s s ol d.

REPORTED PROFIT MOVEMENT – LAST YEAR
9
NZ $millions
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Dec 2015
Actual
Margin impactPromotion costsNet FX ImpactInterestOtherDec 2016
Actual
$0.6m
($6.7m)
$21.5m
$19.1m
($7.9m)
$11.0m
$0.6m

BALANCE SHEET SUMMARY
10
NZ$ millions
Dec 2016
Actual
Dec 2015
Actual
% Change
vs 2015
Assets
Current Assets174.7 159.7 9%
Fixed Assets471.2 405.6 16%
Total Assets645.9 565.3 14%
Liabilities
Current Liabilities36.2 32.1 13%
Deferred Tax Liabilities32.0 26.9 19%
Net Debt292.0 251.5 16%
Total Liabilities360.2 310.5 16%
Equity
Shareholders' Equity285.7 254.8 12%
Total Equity285.7 254.8 12%
Total Liabilities and Equity645.9 565.3 14%

NET DEBT MOVEMENT – JUNE 16 TO DEC 16
11
150.0
170.0
190.0
210.0
230.0
250.0
270.0
290.0
310.0
June 2016
Actual
Cash from
Operations
Working CapitalCapexDividendFXDec 2016
Actual
$0.1m
$21.9m
$282.7m
$292.0m
($3.2m)
($21.6m)
$12.1m

NET DEBT OVERVIEW
12
NZ$ millions
Dec 2016
Actual
Dec 2015
Actual
% Change
vs 2015
Funding
Operating Cash Flow24.9 15.1 65%
Net Debt292.0 251.5 -16%
Key Ratios
Operating Interest Cover6.03 7.65 -21%
Equity / (Equity + Net Debt) %49.5%50.3%-2%
Senior Debt Ratio3.85 3.46 -11%

FULL YEAR OUTLOOK
The Group is on target to achieve it’s sales
forecast of 2,632,000 cases, up 9% on last
year.

The group continues to face risks in the
form of exchange rate volatility, which
makes it difficult to forecast financial
performance. Based on the prevailing
exchange rates, the Group forecasts a 2017
operating profit result in line with last
year's record performance.


13

Thank you