FFW Half Year Report 31 December 2016

Appendix 1 (NZAX Listing Rule 10.4.1)
Half Year Preliminary Announcement


Attachments:
Media Release
Half Yearly Report for the Six Months Ended 31 December 2016.

Foley Family Wines Limited (“FFW”)
Results for announcement to the market

Basis of Report Unaudited
Reporting Period 6 months to 31 December 2016
Previous Reporting Period 6 months to 31 December 2015

Amount (000s) Percentage change
Revenue from ordinary
activities
$NZ 16,601 - 5.1 %
Profit before revaluations
and income tax (“Operating
Earnings”)
$NZ 204 - 90.6 %
Operating profit before
interest, impairment,
revaluations, income tax and
depreciation (“Operating
EBITDA”)
$NZ 2,187 - 47.8 %
Reported Profit (loss) from
ordinary activities after tax
attributable to shareholders
(“Reported NPAT”)
$NZ (323)

- 119.8 %

Profit/(loss) for the period net
of tax attributable to
shareholders
$NZ (323)

- 119.8 %


Dividend Amount per security Imputed amount per security
Interim $NZ Nil $ Nil

Record Date N/A
Dividend Payment Date N/A

Current Reporting Period Prior Reporting Period
Net tangible assets per share $1.42 $1.35

Comments: 1. A full copy of the Half Yearly Report for the year ended
31 December 2016 is available on the FFW web site,
at: http://www.ffw.co.nz.

---

HALF YEARLY REPORT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

1

HALF YEARLY REPORT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

CONTENTS











PAGE


FINANCIAL STATEMENTS
INCOME STATEMENT 2
STATEMENT OF COMPREHENSIVE INCOME 3
STATEMENT OF CHANGES IN EQUITY 3
STATEMENT OF FINANCIAL POSITION 5
STATEMENTS OF CASH FLOWS 7
NOTES TO THE FINANCIAL STATEMENTS 8

COMPANY DIRECTORY 13

2

INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

Unaudited
6 Months
31 Dec 2016
Group
Audited
12 Months
30 Jun 2016
Group
Unaudited
6 Months
31 Dec 2015
Group
Note $’000 $’000 $’000
Revenue 3 16,601 34,846 17,492
Expenses
Cost of sales (12,088) (23,316) (11,851)
Selling, marketing and promotion expenses (1,644) (3,284) (1,700)
Administration and corporate governance expenses (1,102) (2,659) (1,105)
Non-recurring expenses (989) - -
Expenses excluding interest (15,823) (29,259) (14,656)
Profit before interest, impairment, revaluations and
income tax 778 5,587 2,836
Interest revenue 3 64 41
Interest expense 4 (583) (1,320) (693)
Net finance costs (580) (1,256) (652)
Profit/(loss) before impairment, revaluations and
income tax 198 4,331 2,184
Impairment
Impairment of trade and other receivables - (1) -
Impairment of inventory - 9 (12)
Profit/(loss) before revaluations and income tax 204 4,339 2,172
Revaluation gains and losses
Unrealised gain/(loss) in fair value of financial asset/liabilities 9 (24) 276 365
Unrealised gain on biological assets - 2,003 -
Unrealised (loss)/gain on harvested grapes - 2,770 -
Realised reversal of (gain)/loss on harvested grapes (623) (322) (270)
Revaluation of property, plant & equipment - (35) -
Profit before income tax 3 (449) 9,031 2,267
Income tax expense 126 (2,574) (635)
Profit for the period net of tax, attributable to
Shareholders of the Parent Company (323) 6,457 1,632
Basic Earnings per share cps (after tax) 5 (0.62) 12.36 3.12
Diluted Earnings per share cps (after tax) 5 (0.54) 10.75 2.72

These financial statements should be read in conjunction with the Notes to the financial statements on pages 8 to 12.

3

STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

Unaudited
6 Months
31 Dec 2016
Group
Audited
12 Months
30 Jun 2016
Group
Unaudited
6 Months
31 Dec 2015
Group
Note $’000 $’000 $’000
Profit for the period (323) 6,457 1,632
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Revaluation of property, plant and equipment - 1,008 -
Income tax on items taken directly to or transferred from
equity - (124) -
Other comprehensive income for the period, net of
tax - 884 -
Total comprehensive income for the period, net of tax (323) 7,341 1,632


STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

Fully Paid
Ordinary
Shares


Asset
Revaluation
Reserve
Retained
Earnings Total

Note
$’000 $’000 $’000 $’000
Unaudited 6 Months 31 December 2016 Group
Equity at 1 July 2016 66,518 4,000 16,411 86,929
Profit for the period - - (323) (323)
Other comprehensive income for the period - - - -
Total comprehensive income/(expense) for
the period - - (323) (323)
Distributions to owners 6 - - (1,567) (1,567)
Contributions by owners 7 - - - -
Transactions with owners during period - - (1,567) (1,567)
Added to equity during the period - - (1,890) (1,890)
Equity at 31 Dec 2016 66,518 4,000 14,521 85,039
Dividends paid per share cps 6 3.0

These financial statements should be read in conjunction with the Notes to the financial statements on pages 8 to 12.

4

STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016 (CONTINUED)

Fully Paid
Ordinary
Shares


Asset
Revaluation
Reserve
Retained
Earnings Total

Note
$’000 $’000 $’000 $’000
Audited 12 Months 30 June 2016 Group
Equity at 1 July 2015 66,518 3,227 10,887 80,632
Profit for the period - - 6,457 6,457
Other comprehensive income for the period - 773 111 884
Total comprehensive income for the year - 773 6,568 7,341
Distribution to owners 6 - - (1,044) (1,044)
Contributions by owners 7 - - - -
Transactions with owners during year - - (1,044) (1,044)
Added to equity during the year - 773 5,524 6,297
Equity at 30 June 2016 66,518 4,000 16,411 86,929
Dividends paid per share cps 6 2.0

Unaudited 6 Months 31 December 2015 Group
Equity at 1 July 2015 66,518 3,227 10,887 80,632
Profit for the period - - 1,632 1,632
Other comprehensive income for the period - - - -
Total comprehensive income/(expense) for
the period - - 1,632 1,632
Distribution to owners 6 - - (1,044) (1,044)
Contributions by owners 7 - - - -
Transactions with owners during period - - (1,044) (1,044)
Added to equity during the period - - 588 588
Equity at 31 Dec 2015 66,518 3,227 11,475 81,220
Dividends paid per share cps 6 2.0

These financial statements should be read in conjunction with the Notes to the financial statements on pages 8 to 12.

5

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2016

Unaudited
6 Months
31 Dec 2016
Group
Audited
12 Months
30 Jun 2016
Group
Unaudited
6 Months
31 Dec 2015
Group
Note $’000 $’000 $’000

CURRENT ASSETS
Cash and cash equivalents 3,883 2,315 5,289
Trade and other receivables 5,847 7,721 6,700
Other financial assets - 22 130
Inventories 26,303 32,201 22,421
Biological work in progress 4,071 696 3,643
Current tax assets 579 - -
Prepaid expenses 1,349 617 490
42,032 43,572 38,673

NON-CURRENT ASSETS
Property, plant and equipment 48,588 49,848 49,283
Biological assets 16,986 16,932 14,926
Intangible assets 10,841 10,841 10,841
Deferred tax assets 86 86 171
76,501 77,707 75,221

TOTAL ASSETS 118,533 121,280 113,894


These financial statements should be read in conjunction with the Notes to the financial statements on pages 8 to 12.

6

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2016 (CONTINUED)

Unaudited
6 Months
31 Dec 2016
Group
Audited
12 Months
30 Jun 2016
Group
Unaudited
6 Months
31 Dec 2015
Group
Note $’000 $’000 $’000

CURRENT LIABILITIES
Trade and other payables 2,911 3,050 2,314
Loans and borrowings 1,000 1,001 1,000
Finance lease 6 15 26
Convertible notes 10,900 10,900 10,900
Current tax liabilities - 211 45
Other financial liabilities 25 - 21
14,842 15,177 14,306


NON-CURRENT LIABILITIES
Loans and borrowings 9,500 10,000 10,500
Finance lease - - 6
Other financial liabilities 65 88 86
Deferred tax liabilities 9,087 9,086 7,776
18,652 19,174 18,368

TOTAL LIABILITIES 33,494 34,351 32,674



EQUITY
Share capital 7 66,518 66,518 66,518
Reserves 4,000 4,000 3,227
Retained earnings 14,521 16,411 11,475
TOTAL EQUITY 85,039 86,929 81,220

TOTAL LIABILITIES AND EQUITY 118,533 121,280 113,894


These financial statements should be read in conjunction with the Notes to the financial statements on pages 8 to 12.

7

STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

Unaudited
6 Months
31 Dec 2016
Group
Audited
12 Months
30 Jun 2016
Group
Unaudited
6 Months
31 Dec 2015
Group
Note $’000 $’000 $’000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from (applied to)
Receipts from customers 19,704 37,276 19,995
Interest received 3 64 41
Payments to suppliers and employees (14,072) (32,454) (14,770)
Interest and other costs of finance paid (583) (1,320) (693)
Income tax paid (663) (1,321) (816)
Net cash flow from operating activities 8 4,389 2,245 3,757
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from (applied to)
Sale of property, plant and equipment 4 70 78
Purchase of property, plant and equipment and biological
assets (748) (2,134) (1,196)
Net cash flow from investing activities (744) (2,064) (1,118)
CASH FLOW FROM FINANCING ACTIVITIES
Cash was provided for (applied to)
Equity contribution - - -
Dividends paid (1,567) (1,044) (1,044)
Loans repaid (510) (1,114) (598)
Net cash flow from financing activities (2,077) (2,158) (1,642)
Net increase (decrease) in cash held 1,568 (1,977) 997
Cash and cash equivalents/(Bank overdraft) at beginning of
period 2,315 4,292 4,292
Cash and cash equivalents/(Bank overdraft) at end of period 3,883 2,315 5,289
Comprising: Cash and cash equivalents 3,883 2,315 5,289
3,883 2,315 5,289


These financial statements should be read in conjunction with the Notes to the financial statements on pages 8 to 12.

8

NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
1. ACCOUNTING PERIOD

The unaudited financial statements presented are for Foley Family Wines Limited (“the Company”, “the Parent”)
and its subsidiaries (together referred to as “the Group”) and cover the six month period to 31 December 2016.
These condensed financial statements have been prepared in accordance with NZ IAS 34 Interim Financial
Statements and should be read in conjunction with Foley Family Wines Limited’s Annual Report for the year ended
30 June 2016. The financial statements were authorised for issue by the Directors on 28 February 2017.


2. ACCOUNTING POLICIES
The same accounting policies and methods of computation are followed in the interim financial statements as were
followed in the annual financial statements for the year ended 30 June 2016 with the exception of taxation.

Taxation
Income tax expense has been recorded in these financial statements on the basis of 28% of profit/(loss) before
income tax. Any deferred benefits have not been brought to account. This is consistent with the prior year.

There have been no changes in accounting policies during the period.



Unaudited
6 Months
31 Dec 2016
Group
Audited
12 Months
30 Jun 2016
Group
Unaudited
6 Months
31 Dec 2015
Group
$’000 $’000 $’000
3. PROFIT FOR THE PERIOD
Included in profit before income tax for the period are the following:
REVENUE:
Sales revenue – sale of goods – bottled wine 14,057 32,985 16,492
Sales revenue - other 2,544 1,861 1,000
Total revenue 16,601 34,846 17,492
EXPENSES:
Bad debts (net of bad debts recovered) - - -
Depreciation 1,409 2,702 1,357
Directors’ fees 85 150 75
Employee benefits expense:
- Short-term employee benefits 2,896 6,074 2,604
Excise duty and ALAC levy 1,303 2,622 1,562
Fees paid to auditors (PwC):
- Audit of the financial statements (fees and disbursements) 36 65 36
Fees paid to auditors (Grant Thornton):
- Audit of the share registry - 1 -
Non-recurring expenses
- Earthquake related expenses 989 - -

9

NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016 (CONTINUED)

Unaudited
6 Months
31 Dec 2016
Group
Audited
12 Months
30 Jun 2016
Group
Unaudited
6 Months
31 Dec 2015
Group
$’000 $’000 $’000

4. INTEREST EXPENSE
Loan interest and other costs of finance paid 583 1,320 693

5. EARNINGS PER SHARE
Basic Earnings per share ($) (0.62) 12.36 3.12

The calculation is based on NZIFRS earnings/(loss) of the Group of $(323,000) (30Jun16 $6,457,000; 31Dec15
$1,632,000) and the weighted average of 52,222,534 ordinary shares on issue during the period (30Jun16
52,222,534; 31Dec15 52,222,534).
Diluted Earnings per share ($) (0.54) 10.75 2.72

The calculation is based on NZIFRS earnings/(loss) of the Group of $(323,000) (30Jun16 $6,457,000; 31Dec15
$1,632,000) and the weighted average of 60,085,559 ordinary shares on issue during the period (30Jun16
60,085,559; 31Dec15 60,085,559).
The weighted average number of ordinary shares for the purposes of diluted earnings per share reconciles to the
weighted average number of ordinary shares used in the calculation of basic earnings per share as follows:


31Dec2016
Number of
shares
30Jun2016
Number of
shares
31Dec2015
Number of
shares
Weighted average number of ordinary shares (Basic) 52,222,534 52,222,534 52,222,534
Convertible notes outstanding at period end 7,863,025 7,863,025 7,863,025
Weighted average number of ordinary shares (Diluted) 60,085,559 60,085,559 60,085,559


6. DIVIDENDS PAID PER SHARE
The calculation of dividends per share in respect of the interim 2017 period is based on the final dividend for 2016
paid in October totalling $1,567,000 (30Jun16: $1,044,000; 31Dec15 $1,044,000).


Unaudited
6 Months
31 Dec 2016
Group
Audited
12 Months
30 Jun 2016
Group
Unaudited
6 Months
31 Dec 2015
Group
$’000 $’000 $’000
7. SHARE CAPITAL
FULLY PAID UP ORDINARY SHARES
Balance at beginning of period 66,518 66,518 66,518
Movements in share capital - - -
Balance at end of period 66,518 66,518 66,518
Number of fully paid ordinary shares 52,222,534 52,222,534 52,222,534
There were no shares issued during the period (30Jun16 and 31Dec15: Nil).

10

NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016 (CONTINUED)

Unaudited
6 Months
31 Dec 2016
Group
Audited
12 Months
30 Jun 2016
Group
Unaudited
6 Months
31 Dec 2015
Group
$’000 $’000 $’000

8. NET CASH FLOW FROM OPERATING ACTIVITIES
PROFIT AFTER INCOME TAX FOR THE PERIOD (323) 6,457 1,632
NON-CASH ITEMS:
Depreciation 1,409 2,702 1,357
Increase/(decrease) in deferred tax 1 1,271 1
Impairment loss/(gain) recognised on trade and other receivables - 1 -
Impairment loss/(gain) recognised on inventories - (9) 12
Adjustments resulting from revaluation of grapes 623 (2,448) 270
(Gain)/loss on revaluation of biological assets - (2,003) -
(Gain)/loss on disposal of property, plant and equipment 541 (25) (31)
(Gain)/loss on asset revaluations - 35 -
2,574 (476) 1,609
MOVEMENTS IN WORKING CAPITAL BALANCES:
Trade and other receivables 1,874 439 1,461
Inventories 5,277 (2,309) 4,732
Biological work in progress (3,375) (115) (3,062)
Prepaid expenses (732) (335) (208)
Trade and other payables (139) (1,124) (1,860)
Other financial assets/liabilities 24 (276) (365)
Current tax assets/liabilities (791) (16) (182)
2,138 (3,736) 516
NET CASH FLOW FROM OPERATING ACTIVITIES 4,389 2,245 3,757


9. FINANCIAL INSTRUMENTS
Change in fair value of financial assets/liabilities consists of:
Foreign currency forward contracts (47) 214 322
Foreign currency option contracts - 21 21
Interest rate swaps 23 41 22
(24) 276 365

11

NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016 (CONTINUED)

Unaudited
6 Months
31 Dec 2016
Group
Audited
12 Months
30 Jun 2016
Group
Unaudited
6 Months
31 Dec 2015
Group
$ $ $
10. NET TANGIBLE ASSETS
Net tangible assets per share 1.42 1.46 1.35



11. RELATED PARTY TRANSACTIONS

(a) Material transactions with related parties during the period are set out below:

(i) Sales were made to Foley Family Wines, Inc., a 100% owned subsidiary of Foley Family Wines Holdings,
Inc., the ultimate parent of Foley Family Wines Limited. Sales for the period were $2,760,000 for the
Group (Jun16: $6,631,000; Dec15: $2,861,000).

(ii) Marketing support services were provided by Foley Family Wines Inc., a 100% owned subsidiary of Foley
Family Wines Holdings, Inc., the ultimate parent of Foley Family Wines Limited. Marketing support
charges for the period were $50,000 for the Group (Jun16: $108,000; Dec15: $55,000).

(iii) Interest was paid/payable to Foley Family Wines Holdings, New Zealand Limited the parent of the Foley
Family Wines Limited under the convertible note. Interest paid/payable for the period was $357,000 for
the Group (Jun16: $709,000; Dec15: $357,000).

(iv) Sales were made to EuroVintage Limited, a 50% associate of the parent company of Foley Family Wines
Limited. Sales for the period were $4,532,000 for the Group (Jun16: $9,046,000; Dec15: $5,290,000).
Management fees and the funding of promotional activity such as bonus stock relating to these sales of
$424,000 were charged by EuroVintage during the period (Jun16: $927,000; Dec15: $505,000).

(v) Sales were made to, and administration services provided to, Wharekauhau Country Estate Limited, a
luxury lodge 74.6% owned by Bill Foley, the majority shareholder of the ultimate parent. Sales for the
period totalled $12,000 for the Group (Jun16: $27,000; Dec15: $13,000). Administration Charges for the
period totalled $2,000 for the Group (Jun16: $5,000; Dec15 $2,000). Accommodation and function
facilities provided by Wharekauhau to the Company during the period totalled $11,000 (Jun16: $49,000;
Dec15: $15,000).

(vi) Sales were made to Epic Ventures, Inc., trading as Epic Wines & Spirits, a company owned by Bill Foley,
the majority shareholder in the ultimate parent. Sales for the period were $Nil (Jun16: $122,000; Dec15:
$36,000).

(vii) Lighthouse Gin was purchased for global distribution from Lighthouse Distillery Limited, a company
owned by Mark Turnbull, CEO and Director of Foley Family Wines Limited. Purchases during the period
totalled $211,000 (Jun16: $449,000; Dec15: $125,000). Administration and contract distilling services
were provided to Lighthouse Distillery Limited during the period of $31,000 (Jun16: $39,000; Dec15:
$15,000).

12

NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016 (CONTINUED)


Unaudited
6 Months
31 Dec 2016
Group
Audited
12 Months
30 Jun 2016
Group
Unaudited
6 Months
31 Dec 2015
Group
$’000 $’000 $’000

11. RELATED PARTY TRANSACTIONS (CONTINUED)

(b) Amounts owing to related parties at balance date:
Foley Family Wines Inc. 26 17 34
Foley Family Wines Holdings, New Zealand Limited – convertible note 10,900 10,900 10,900
EuroVintage Limited 134 84 167
Wharekauhau Country Estate Limited - 7 -
Lighthouse Distillery Limited 50 108 -

(c) Amounts owing from related parties at balance date:
Foley Family Wines Inc. 1,059 1,809 1,540
Epic Ventures, Inc. - 60 -
EuroVintage Limited 1,534 726 1,539
Wharekauhau Country Estate Limited 5 1 4
Lighthouse Distillery Limited 31 37 15



12. SUBSEQUENT EVENTS
No material events have occurred since balance date.



13. FOREIGN CURRENCY EXCHANGE RATES
The following spot foreign exchange rates have been applied at balance date:


31 Dec
2016
31 Dec
2016
30 June
2016
30 June
2016
31 Dec
2015
31 Dec
2015
NZ $1.00 =
FFW Buy FFW Sell FFW Buy FFW Sell FFW Buy FFW Sell
Australian dollar 0.9607 0.9679 0.9539 0.9604 0.9354 0.9415
United States dollar 0.6923 0.6983 0.7091 0.7142 0.6804 0.6857
Great British pound 0.5661 0.5709 0.5281 0.5320 0.4587 0.4628
Euro 0.6607 0.6667 0.6383 0.6433 0.6235 0.6285



14. SHAREHOLDER INFORMATION
August/September 2017 Annual Report Published
November 2017 Annual Shareholders Meeting

13

HALF YEARLY REPORT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

DIRECTORS: WP Foley, II (Chairman)
AJ Anselmi
JA Jamieson
AM Turnbull (CEO)

HEAD OFFICE ADDRESS: 13 Waihopai Valley Road
RD 6, Blenheim 7276, Marlborough, New Zealand
Telephone +64 3 572 8200
Facsimile +64 3 572 8211

POSTAL ADDRESS: PO Box 67, Renwick 7243, Marlborough, New Zealand

EMAIL: info@ffw.co.nz

WEBSITES: www.ffw.co.nz (www.nzwineco.co.nz)
www.grovemill.co.nz
www.vavasour.com
www.tekairanga.com
www.martinborough-vineyard.co.nz

NATURE OF BUSINESS: Production and distribution of wine

AUDITORS: PricewaterhouseCoopers, Auckland

SOLICITORS: Bell Gully, Auckland

BANKERS: Bank of New Zealand, Auckland

REGISTRATION NO. 307139

REGISTERED OFFICE: 13 Waihopai Valley Road,
RD 6 Blenheim 7276, Marlborough, New Zealand

SHARE REGISTRAR: Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Takapuna, Auckland
Private Bag 92119, Auckland 1020
Telephone +64 9 488 8777
Facsimile +64 9 488 8787
Email: enquiry@computershare.co.nz (please quote
CSN or shareholder number)
Website for shareholders to change address or payment
instructions or view investment portfolio:
www.computershare.co.nz/investorcentre

SHARE TRADING: NZX – NZAX Market
Security Code “FFW”

---

NZAX Release

28 February 2017
For Immediate Release



Mark Turnbull, Chief Executive Officer of Foley Family Wines Limited (FFW) announced today that
the company’s unaudited half year result for the six months ended 31 December 2016 was a loss after
tax of $323,000 compared with a profit of $1,632,000 for the same period last year. Underlying
earnings of $204,000 was $1,968,000 lower than the same period last year.

The Culverden Earthquake inflicted significant tank damage at the Grove Mill winery. Nearly all tanks
sustained damage to some extent, from a complete write off to minor repairs. The company has
recorded a one off cost of $989,000 which essentially reflects the insurance excess turning a first half
profit after tax into a reported loss after tax of $323,000. The company is grateful of the support the
company has received from its insurers, contractors and staff, as the winery will be repaired in time
for the 2017 vintage.

Sales Revenue from bottled wine for the 31 December 2016 half year was down $2,435,000 (14.8%)
on the same period last year. Case sales were down 36,000 dozen from last year to 179,000 with the
Australian and New Zealand markets accounting for 90% of this decrease. At the same time the New
Zealand dollar has strengthened against all major trading currencies. The pound in particlar which
has moved approximately 30% in the comparative period has had a material affect on the profitability
of the UK market.

Cash on hand of $3,883,000 reflects strong operating cashflow of $4,389,000 in the period. Further,
the company has paid a dividend of $1,567,000 and reduced bank debt by $500,000 during the
period.

Mark Turnbull, CEO said “the last six months have been extremely challenging for the Company,
besides the actual damage inflicted by the earthquake, getting the winery operational has been very
distracting for our small team. The currency has compounded the problem of profitability of some
markets and with a large vintage in 2016 many businesses are not in a position to increase pricing. We
are determined to have a much stronger second six months and return the company to a growth path”.

Authorised for public release.


For further information please contact:
Mark Turnbull
CEO, Foley Family Wines Limited
PO Box 67, Renwick, 7243, Marlborough
Tel: +64 21 714 885
Email: mark@ffw.co.nz