DGL – Interim 2017 Report

USA
HOT BRAND
AWARD
7
YEARS
IN A ROW
DELEGAT GROUP LIMITED INTERIM REPORT 2017

CONTENTS
Executive Chairman’s Report
Statement of Financial Performance
Statement of Other Comprehensive Income
Statement of Changes in Equity
Statement of Financial Position
Statement of Cash Flows
Statement of Accounting Policies
Notes to the Financial Statements
Directory
Oyster Bay is now the number 2 premium white wine in the USA.
In recognition of its continued growth and strong brand position,
it was awarded Hot Brand for the seventh consecutive year from
New York’s Impact Magazine.
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Delegat Group Limited (the Group) presents its operating and financial results for the six months
ended 31 December 2016.
PERFORMANCE HIGHLIGHTS
• Record global case sales of 1,446,000.
• Record operating NPAT of $24.7 million.
• Capital investment of $21.9 million in growth assets including vineyard
development and the Hawke’s Bay and Marlborough Wineries.
• Oyster Bay received the ‘Hot Brand’ award from New York’s highly
regarded Impact Magazine for a seventh consecutive year.
• Barossa Valley Estate Shiraz 2014 and Grenache Shiraz Mourvèdre 2014
were both awarded 90 Points by James Halliday, Australia’s leading
wine writer.
• Delegat Crownthorpe Terraces Chardonnay 2015 received a Gold
Medal at the New Zealand International Wine Show 2016.
EXECUTIVE CHAIRMAN’S REPORT
DELEGAT INTERIM REPORT 2017. EXECUTIVE CHAIRMAN’S REPORT
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The Group presents its financial statements in accordance with the New Zealand equivalents
to International Financial Reporting Standards (NZ IFRS). The Directors continue to be of the
view that the results reported under NZ IFRS do not provide adequate insight into the Group’s
underlying operational performance, primarily due to a number of fair value adjustments that are
required to be reported on.
To better understand the operating performance, the Group has published an Operating
Performance report and reconciliation of Operating Profit to Reported Profit. This reconciliation
eliminates from each line in the Statement of Financial Performance all fair value adjustments.
OPERATING PERFORMANCE
A record Operating NPAT of $24.7 million was generated compared to $21.1 million for the same
period the previous year. Operating EBIT of $41.4 million is $7.6 million higher than for the same
period the previous year.
Delegat achieved Operating Revenue of $135.8 million on global case sales of 1,446,000 in the
six month period. Revenue is up $7.2 million on the same period last year due to a 14% increase
in global case sales, partially offset by the unfavourable impact of foreign exchange rate changes.
The Group’s case sales performance and foreign currency rates achieved are detailed in table 2.
Operating Gross Margin is up 6% on the same period last year and is impacted by lower cost of
goods per case arising from the higher yielding 2016 vintage. Operating Expenses at $35.3 million
Notes:
1 Operating Revenue is before fair value movements on derivative instruments (if gains).
2 Operating Gross Profit is before the net fair value movements on biological produce (harvest adjustment) and the NZ IFRS adjustments excluded in Note 1.
3 Operating Expenses are before fair value movements on derivative instruments (if losses) and share-based payments.
4 Operating EBIT, EBITDA and NPAT are before any fair value adjustments.
TABLE 1.
Operating Performance
Dec 2016 Dec 2015 % change
NZ$ millions Actual Actual vs 2015
Total Operating Revenue
1
135.8 128.6 6%
Operating Gross Profit
2
76.7 72.0 6%
Operating Gross Margin 56% 56%
Operating Expenses
3
(35.3) (38.2) 8%
Operating EBIT
4
41.4 33.8 22%
Operating EBIT % of Revenue 30% 26%
Interest and Tax (16.7) (12.7) -31%
Operating NPAT
4
24.7 21.1 17%
Operating NPAT % of Revenue 18% 16%
Operating EBITDA
4
48.5 40.8 19%
Operating EBITDA % of Revenue 36% 32%
DELEGAT INTERIM REPORT 2017. EXECUTIVE CHAIRMAN’S REPORT
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are $2.9 million lower than the same period last year. This is due to the impact of a stronger
New Zealand currency on the translation of off-shore expenditure.
NZ IFRS FAIR VALUE ADJUSTMENTS
In accordance with NZ IFRS the Group is required to account for certain of their assets at fair
value rather than at historic cost. All movements in these fair values are reflected in and impact the
Statement of Financial Performance. The Group records adjustments in respect of two significant
items at the half-year reporting date as detailed in table 3:
• Harvest Provision Release (Grapes) – Inventory is valued at market value, rather than costs
incurred, at harvest. Any fair value adjustment is excluded from Operating Performance for the
year, by creating a Harvest Provision. This Harvest Provision is then released through Cost of
Case Sales and
Foreign Currency
Dec 2016 Dec 2015 % change
Case Sales (000s) Actual Actual vs 2015
UK, Ireland and Europe 449 384 17%
North America (USA and Canada) 518 476 9%
Australia, NZ and Asia Pacific 479 407 18%
Total Cases 1,446 1,267 14%

Foreign Currency Rates
GB£ 0.5396 0.4451 -21%
AU$ 0.9428 0.9224 -2%
US$ 0.7132 0.6503 -10%
CA$ 0.9438 0.8759 -8%
TABLE 2.
“Delegat achieved record global case
sales and Operating NPAT in the first
half of the 2017 financial year.”
JI M DE LEGAT EXECUTIVE CHAIRMAN
DELEGAT INTERIM REPORT 2017. EXECUTIVE CHAIRMAN’S REPORT
3

TABLE 3.
Notes:
1. Biological Produce (Grapes) is the difference between market value paid for grapes versus the cost to
grow grapes. The Harvest Provision is reversed and only recognised when the finished wine is sold.
2. n/m means not meaningful.
Impact of Fair Value
Adjustments
Dec 2016 Dec 2015 % change
NZ$ millions Actual Actual vs 2015
Operating NPAT 24.7 21.1 17%
Operating NPAT % of Revenue 18% 16%
NZ IFRS Fair Value Items
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 NPAT 19.1 21.5 -11%
Sales when inventory is sold in subsequent years. The adjustment provides a write-down of $8.3
million (December 2015: $4.8 million);
• Derivative Instruments held to hedge the Group’s foreign currency and interest rate exposure.
The mark-to-market movement of these instruments at balance date resulted in a fair value
write-up of $0.6 million (December 2015: $5.4 million).
These together with minor adjustments in respect of share-based payments, net of taxation, amount
to a write-down of $5.6 million (December 2015: write-up of $0.4 million).
RECONCILIATION OF REPORTING TO OPERATING PERFORMANCE
Accounting for all fair value adjustments under NZ IFRS, the Group’s reported unaudited financial
performance for the six months ended 31 December 2016 is reconciled to Operating Profit as
detailed in table 4.
CASH FLOW
The Group generated Cash Flows from Operations of $24.9 million in the current half-year, which
is an increase of $9.8 million on the same period last year. This increase is primarily due to higher
receipts from customers due to the higher case sales. A total of $23.0 million was invested in
additional property, plant and equipment during the period, including vineyard development in
New Zealand and the Barossa Valley, and development of the Hawke’s Bay and Marlborough
DELEGAT INTERIM REPORT 2017. EXECUTIVE CHAIRMAN’S REPORT
4

TABLE 4.
Notes:
1. EBIT means earnings before interest and tax.
2. NPAT means net profit after tax.
3. EBITDA means earnings before interest, tax, depreciation and amortisation.
Reconciliation of
Reporting to
Operating
Performance
Operating Fair Value Reported Operating Fair Value Reported
NZ$ millions Adjustment Adjustment
Operating Revenue 135.8 0.6 136.4 128.6 5.4 134.0
Cost of Sales (59.1) (8.3) (67.4) (56.6) (4.8) (61.4)
Gross Profit 76.7 (7.7) 69.0 72.0 0.6 72.6
Operating Expenses (35.3) – (35.3) (38.2) – (38.2)
EBIT
1
41.4 (7.7) 33.7 33.8 0.6 34.4
Interest and Tax (16.7) 2.1 (14.6) (12.7) (0.2) (12.9)
NPAT
2
24.7 (5.6) 19.1 21.1 0.4 21.5
EBIT
1
41.4 (7.7) 33.7 33.8 0.6 34.4
Depreciation and Amortisation 7.1 – 7.1 7.0 – 7.0
EBITDA
3
48.5 (7.7) 40.8 40.8 0.6 41.4
Six months ended 31 December 2016 Six months ended 31 December 2015
wineries, which will provide earnings growth into the years ahead. The Group distributed $12.1
million to shareholders in dividends. Additional borrowings of $10.3 million were drawn down to
fund the increased capital investment during the six months.
The Group has Net Debt of $292.0 million, compared to $282.7 million at 30 June 2016 – an
increase of 3% and well within the Group’s long-term bank debt facilities.
LOOKING FORWARD
The results achieved in the six months to December 2016 are testament to the strength of the
Group’s business model. Delegat Group is well positioned to pursue its strategic goal to build a
leading global Super Premium wine company. The Group is on target to achieve global case sales
for the full year of 2,632,000, 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.
JI M DE LEGAT EXECUTIVE CHAIRMAN
DELEGAT INTERIM REPORT 2017. EXECUTIVE CHAIRMAN’S REPORT
5

* The financial statements for the periods ended 30 June 2016 and 31 December 2015 have been restated following the adoption of Amendments to NZ IAS 16: Property, Plant and Equipment
and NZ IAS 41: Agriculture on 1 July 2016. Refer to Statement of Accounting Policies.
The accompanying notes form part of these financial statements
Unaudited
Dec 2016
6 Months
$000
Audited
June 2016
12 M o nths
$000
Restated*
Unaudited
Dec 2015
6 Months
$000
Restated*
Revenue 13 6, 374 247,331 133,944
Profit before finance costs 33,691 76,845 34,421
Finance costs 6,862 9,656 4,419
Profit before income tax 26,829 67,189 30,002
Income tax expense 7, 6 8 8 19,076 8,469
Profit for the Period attributable to Shareholders of the Parent Company 19,141 4 8,113 21, 533

Earnings Per Share
– Basic earnings per share (cents per share) 18.93 47.58 21.30
– Fully diluted earnings per share (cents per share) 18.93 47.58 21.29
STATEMENT OF
FINANCIAL PERFORMANCE
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
6

* The financial statements for the periods ended 30 June 2016 and 31 December 2015 have been restated following the adoption of Amendments to NZ IAS 16: Property, Plant and Equipment
and NZ IAS 41: Agriculture on 1 July 2016. Refer to Statement of Accounting Policies.
The accompanying notes form part of these financial statements
Unaudited
Dec 2016
6 Months
$000
Audited
June 2016
12 M o nths
$000
Restated*
Unaudited
Dec 2015
6 Months
$000
Restated*
Profit after income tax 19,141 4 8,113 21, 533
Other comprehensive income that may subsequently
be classified to the profit and loss:
– Translation of foreign subsidiaries (1,415) (2,483) (1,014)
– Net gain on hedge of a net investment 162 – –
– Income tax relating to components of other comprehensive income (45) – –
Total comprehensive income for the period, net of tax 1 7, 8 4 3 45,630 20,519
Comprehensive income attributable to Shareholders of the Parent Company 1 7, 8 4 3 45,630 20,519
STATEMENT OF OTHER
COMPREHENSIVE INCOME
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
7

STATEMENT OF CHANGES
IN EQUITY
Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Share-
based
Payment
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2016 49,815 (3,697) 585 233,286 279,989
Changes in equity for the period ended 31 December 2016
Other comprehensive income
– Translation of foreign subsidiaries – (1,415) – – (1,415)
– Net gain on hedge of a net investment – 162 – – 162
– Income tax relating to components of
other comprehensive income – (45) – – (45)
Total other comprehensive income – (1,298) – – (1,298)
– Net profit for the period – – – 19,141 19,141
Total comprehensive income for the period – (1,298) – 19,141 1 7, 8 4 3
Equity Transactions
– Dividends paid to shareholders – – – (12,141) (12,141)
Unaudited balance at 31 December 2016 49,815 (4,995) 585 240,286 285,691
FOR THE PERIOD ENDED 31 DECEMBER 2016 (UNAUDITED)
* The financial statements for the periods ended 30 June 2016 and 31 December 2015 have been restated following the adoption of Amendments to NZ IAS 16: Property, Plant and Equipment
and NZ IAS 41: Agriculture on 1 July 2016. Refer to Statement of Accounting Policies.
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
8

STATEMENT OF CHANGES
IN EQUITY
continued
Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Share-
based
Payment
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2015 49,712 (1,214) 596 196,302 245,396
Changes in equity for the year ended 30 June 2016
Other comprehensive income
– Translation of foreign subsidiaries – (2,483) – – (2,483)
Total other comprehensive income – (2,483) – – (2,483)
– Net profit for the year – – – 48,113 4 8,113
Total comprehensive income for the year – (2,483) – 48,113 45,630
Equity Transactions
– Shares issued 103 – (21) – 82
– Dividends paid to shareholders – – 5 (11,129) (11,124)
– Share-based payments expense – – 5 – 5
Audited balance at 30 June 2016 49,815 (3,697) 585 233,286 279,989
Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Share-
based
Payment
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2015 49,712 (1,214) 596 196,302 245,396
Changes in equity for the period ended 31 December 2015
Other comprehensive income
– Translation of foreign subsidiaries – (1,014) – – (1,014)
Total other comprehensive income – (1,014) – – (1,014)
– Net profit for the period – – – 21,533 21,533
Total comprehensive income for the period – (1,014) – 21,533 20,519
Equity Transactions
– Dividends paid to shareholders – – 5 (11,129) (11,124)
– Share-based payments expense – – 3 – 3
Unaudited balance at 31 December 2015 49,712 (2,228) 604 206,706 254,794
FOR THE YEAR ENDED 30 JUNE 2016 (AUDITED) / RESTATED*
FOR THE PERIOD ENDED 31 DECEMBER 2015 (UNAUDITED) / RESTATED*
* The financial statements for the periods ended 30 June 2016 and 31 December 2015 have been restated following the adoption of Amendments to NZ IAS 16: Property, Plant and Equipment
and NZ IAS 41: Agriculture on 1 July 2016. Refer to Statement of Accounting Policies.
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
9

Unaudited
Dec 2016
$000
Audited
June 2016
$000
Restated*
Unaudited
Dec 2015
$000
Restated*
Audited
June 2015
$000
Restated*
Equity
Share capital 49,815 49,815 49,712 49,712
Foreign currency translation reserve (4,995) (3,697) (2,228) (1,214)
Share-based payment reserve 585 585 604 596
Retained earnings 240,286 233,286 206,706 196,302
Total Equity 285,691 279,989 254,794 245,396

Liabilities
Current Liabilities
Trade payables and accruals 28,880 31,190 26,357 29,739
Derivative financial instruments 1,063 2,397 1,709 6,587
Interest-bearing loans and borrowings 15,000 – – –
Income tax payable 321 3,405 529 6,422
45,264 36,992 28,595 42,748
Non-Current Liabilities
Deferred tax liability 32,473 29,216 27,349 22,734
Derivative financial instruments 5,952 7,057 3,523 3,302
Interest-bearing loans and borrowings (secured) 282,510 287,148 258,761 206,768
320,935 323,421 289,633 232,804
Total Liabilities 366,199 360,413 318,228 275,552
Total Equity and Liabilities 651,890 640,402 573,022 520,948


STATEMENT OF
FINANCIAL POSITION
* The financial statements for the periods ended 30 June 2016 and 31 December 2015 have been restated following the adoption of Amendments to NZ IAS 16: Property, Plant and Equipment
and NZ IAS 41: Agriculture on 1 July 2016. Refer to Statement of Accounting Policies.
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES. AS AT 31 DECEMBER 2016
10

Unaudited
Dec 2016
$000
Audited
June 2016
$000
Restated*
Unaudited
Dec 2015
$000
Restated*
Audited
June 2015
$000
Restated*
Assets
Current Assets
Cash and cash equivalents 5,472 4,425 7,255 4,782
Trade and other receivables 55,450 43,746 52,772 42,942
Derivative financial instruments 2,450 4,281 682 –
Income tax receivable 1,933 67 1,529 144
Inventories 114,8 4 0 130,610 104,677 112,888
18 0,145 183,129 166,915 160,756
Non-Current Assets
Property, plant and equipment 4 6 7, 6 9 6 453,212 402,439 356,597
Intangible assets 3,578 3,692 3,157 3,066
Derivative financial instruments – – 22 –
Deferred tax asset 471 369 489 529
47 1,74 5 457,273 4 0 6,107 36 0,192
Total Assets 651,890 640,402 573,022 520,948

For, and on behalf of, the Board who authorised the issue of the financial statements on 27 February 2017.
JN Delegat, Executive Chairman GS Lord, Managing Director
STATEMENT OF
FINANCIAL POSITION
continued
* The financial statements for the periods ended 30 June 2016 and 31 December 2015 have been restated following the adoption of Amendments to NZ IAS 16: Property, Plant and Equipment
and NZ IAS 41: Agriculture on 1 July 2016. Refer to Statement of Accounting Policies.
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES. AS AT 31 DECEMBER 2016DELEGAT GROUP LIMITED AND SUBSIDIARIES. AS AT 31 DECEMBER 2016
11

NoteUnaudited
Dec 2016
6 Months
$000
Audited
June 2016
12 M o nths
$000
Unaudited
Dec 2015
6 Months
$000
Operating Activities
Cash was provided from
Receipts from customers 127,429 241,354 123,564
Interest received 5 29 13
Income tax received – 96 –
Net GST received/(paid) 1,326 (529) (211)
128,760 240,950 123,366
Cash was applied to
Payments to suppliers and employees 79,527 150,538 85,629
Payments to grape growers 8,951 22,381 6,759
Interest paid 5,908 10,142 4,835
Income tax paid 9,518 15,438 11,081
103,904 198,499 108,304
Net Cash Inflows from Operating Activities 3 24,856 42,451 15,062

Investing Activities
Cash was provided from
Proceeds from sale of property, plant and equipment 1,147 1,763 1,4 43
Dividends received 2 7 7
1,149 1,7 70 1,450
Cash was applied to
Purchase of property, plant and equipment 22,453 112,97 7 5 4,726
Purchase of intangible assets – 226 226
Capitalised interest paid 589 4,010 2,334
Capitalised lease payments – 44 32
23,042 1 1 7, 2 5 7 5 7, 3 1 8
Net Cash Outflows from Investing Activities (21,893) (115,487) (55,868)

The accompanying notes form part of these financial statements
STATEMENT OF
CA SH FLOWS
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
12

The accompanying notes form part of these financial statements
Unaudited
Dec 2016
6 Months
$000
Audited
June 2016
12 M o nths
$000
Unaudited
Dec 2015
6 Months
$000
Financing Activities
Cash was provided from
Proceeds from issue of shares – 83 –
Proceeds from borrowings 37,982 97,046 54,644
37,982 97,129 5 4,6 4 4
Cash was applied to
Dividends paid to shareholders 12,129 11,124 11,122
Repayment of borrowings 2 7, 6 9 4 12,889 –
39,823 24,013 11,122
Net Cash (Outflows)/Inflows from Financing Activities (1,841) 73,116 43,522
Net Increase in Cash Held 1,122 80 2,716
Cash and cash equivalents at beginning of the year 4,425 4,782 4,782
Effect of exchange rate changes on foreign currency balances (75) (437) (243)
Cash and Cash Equivalents at End of the Period 5,472 4,425 7,255
STATEMENT OF
CASH FLOWS
continued
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
13

STATEMENT OF
ACCOUNTING POLICIES
REPORTING ENTITY
The financial statements presented are those of Delegat Group Limited and its subsidiaries (the Group). Delegat
Group Limited is a company limited by shares, incorporated and domiciled in New Zealand and registered under the
Companies Act 1993. The Parent shares are publicly traded on the New Zealand Stock Exchange.
The financial statements for the Group for the six months ended 31 December 2016 were authorised for issue in
accordance with a resolution of the Directors on 27 February 2017.
BASIS OF PREPARATION
The interim consolidated financial statements of the Group are for the six months ended 31 December 2016 and have
been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (NZ GAAP) and NZ IAS
34: Interim Financial Reporting. Accounting policies applied in these interim financial statements comply with New
Zealand equivalents to International Financial Reporting Standards, other applicable Financial Reporting Standards
(NZ IFRS) and NZ IFRIC interpretations issued and effective or issued and early adopted as at the time of preparing
these statements (February 2017) as applicable to the Group as a profit-oriented entity.
The interim financial statements are presented in New Zealand Dollars, rounded to the nearest thousand. They are
prepared on a historical cost basis except for derivative financial instruments and biological produce which have been
measured at fair value.
The preparation of the interim financial statements in conformity with NZ IAS 34 requires the Group to make
judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and
liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the circumstances. Actual results may vary from these
estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised if the revision affects only that period, or in
the period of revision and future periods if the revision affects both current and future periods.
FINANCIAL INSTRUMENTS
The Group holds interest rate swaps at fair value through the statement of financial performance. In estimating the
fair value of the interest rate swaps the Group uses level 2 inputs of the fair value measurement hierarchy. The Group’s
interest rate swaps fall into level 2 of the fair value measurement hierarchy because their fair value is determined using
inputs, other than quoted prices included in level 1, that are observable for the asset or liability, either directly as
prices or indirectly (derived from prices). The fair values are derived through valuation techniques that maximise the
use of observable market data where it is available and rely as little as possible on entity specific estimates.
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
14

STATEMENT OF
ACCOUNTING POLICIES
continued
HEDGE OF NET INVESTMENT IN FOREIGN OPERATION
For hedges of a net investment in a foreign operation, the effective portion of the gain or loss on the hedging
instrument is recognised in the statement of other comprehensive income and accumulated in the foreign currency
translation reserve, while any ineffective portion is recognised immediately in the statement of financial performance.
On disposal of the foreign operation, the cumulative amount of any such gains or losses accumulated within equity
are transferred to the statement of financial performance.
Included in interest-bearing loans and borrowings at 31 December 2016 is a borrowing of A$29,350,000 which
during the period has been designated as a hedge of the net investment in Barossa Valley Estate Pty Limited (BVE).
This borrowing is being used to hedge the Group’s exposure to the AUD foreign exchange risk on this investment.
Gains or losses on the retranslation of this borrowing are transferred to the statement of other comprehensive income
to offset any gains or losses on translation of the net investment in BVE. There is no ineffectiveness in the period
ended 31 December 2016.
CHANGES IN ACCOUNTING POLICIES
The accounting policies adopted are consistent with those of the previous financial year, with the exception of the
adoption of Amendments to NZ IAS 16: Property, Plant and Equipment and NZ IAS 41: Agriculture on 1 July 2016
(see below). Refer to the published financial statements for the year ended 30 June 2016 for a complete listing of the
Group accounting policies.
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
15

STATEMENT OF
ACCOUNTING POLICIES
continued
Unaudited
June 2016
$000
Increase /
(Decrease)
Unaudited
Dec 2015
$000
Increase /
(Decrease)
Unaudited
June 2015
$000
Increase /
(Decrease)
Financial statement line:
Statement of Financial Performance
Revenue (7,043) (6,331)
Cost of sales 1,128 (9,637)
Income tax expense (2,294) 934
Earnings Per Share
– Basic earnings per share (cents per share) (5.81) 2.34
– Fully diluted earnings per share (cents per share) (5.81) 2.34
Statement of Financial Position
Equity (33,896) (25,647) (28,019)
Current tax liability 3 194 –
Deferred tax liability (13,627) (10,619) (11,426)
Inventory – 10,194 –
Property, plant and equipment (47,632) (46,349) (39,461)
Deferred tax asset 112 83 16
On 1 July 2016, the Group adopted Amendments to NZ IAS 16: Property, Plant and Equipment and NZ IAS 41: Agriculture.
Following implementation of these amendments, the Group’s bearer plants (vines) fall within the scope of NZ IAS 16 rather
than NZ IAS 41. Under NZ IAS 16, the Group has the ability to choose between the cost model and the revaluation model
for subsequent measurement and there is a requirement to depreciate the bearer plants over their estimated useful lives.
In accordance with the requirements of NZ IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors the
financial statements for the periods ended 30 June 2016 and 31 December 2015 have been restated and in accordance with
NZ IAS 34 a statement of financial position as at the beginning of the preceding period has been presented.
Under NZ IAS 16, the Group has chosen to adopt the cost model to value their bearer plants and has applied the
fully retrospective transition provisions. This means that all fair value increments previously recognised have been
reversed and the Group’s bearer plants depreciated from their original planting dates. The estimated useful life of
the Group’s bearer plants is 50 years. As shown in the table below, this has decreased the value of the Group’s bearer
plants which are now included in property, plant and equipment and decreased the Group’s deferred tax liability, with
a corresponding decrease in equity.
Under NZ IAS 41, at the half year reporting date the Group previously recognised a fair value increment on the
Group’s bearer plants, representing the value of the agricultural produce (grapes) attached to the bearer plants at
this date, and accordingly expensed the growing costs incurred during the period. Following the adoption of the
amendments above, the fair value of the agricultural produce (grapes) at the half year reporting date is determined
separately from the value of the bearer plants and included within inventory. The Group considers the growing costs
incurred for the period to be the best indicator of the fair value of agricultural produce at the half year reporting date.
CHANGES IN ACCOUNTING POLICIES (CONTINUED)
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
16

NOTES TO THE
FINANCIAL STATEMENTS
1. SEGMENTAL REPORTING
The Group reviews its operational performance based upon the management and the geographic areas in which their
customers are based. Financial information which is available to management in order to assess segment performance
and investment opportunities is presented on the same basis. In accordance with NZ IFRS 8: Operating Segments this
forms the basis of presentation for Segment Reporting and is the format adopted below:
– Delegat Limited (Delegat) is party to vineyard leases and has interests in freehold land and winery infrastructure
which allows the company to grow, harvest and make finished wine to be marketed, distributed and sold into the
Super Premium wine markets. Delegat sells and markets its product through a combination of subsidiary companies
based overseas or to customers and distributors directly in the New Zealand, Canadian, Asian and Pacific Island
markets. Delegat Australia Pty Limited, Delegat Europe Limited, and Delegat USA, Inc. act as distributors and
assist in the marketing of product in their respective geographic regions. Wines are sold all year round to all regions
and the Group considers there is no significant variation in revenues throughout the year.
The Group implements appropriate transfer pricing regimes within the operating segments on an arm’s length basis
in a manner similar to transactions with third parties.
Management monitor the operating results of its business units separately for the purpose of making resource
allocations and performance assessments. Segment performance is evaluated based on operating profit or loss,
which may be measured differently from operating profit or loss in the consolidated financial statements as segment
reporting is based upon internal management reports. The main differences are a result of some deferred tax balances
being recognised upon consolidation not being allocated to individual subsidiaries. Also intercompany stock margin
eliminations are managed on a group basis and are not allocated to operating segments.
For the 6 months ended
31 December 2016
Delegat
Limited
$000
Delegat
Australia
Pty Ltd
$000
Delegat
Europe
Limited
$000
Delegat
USA, Inc.
$000
Other
Segments
$000
Eliminations
and
Adjustments
9
$000
6 months ended
31 December
2016
$000
Operating income
External sales
6
33,760 46,346 39,075 41,887 2,261 (26,955) 13 6, 374
Internal sales 110,398 – – – 5,555 (115,953) –
Total segment revenues
1
144,158 46,346 39,075 41,887 7,816 (142,908) 13 6, 374
Interest revenue 1 2 – 1 2,637 (2,636) 5
Operating expenses
Interest expense
2
8,713 – – – 785 (2,636) 6,862
Depreciation and amortisation
3
6,369 67 8 33 640 – 7, 1 1 7
Income tax expense/(credit)
4
5,772 352 196 418 1,120 (170) 7, 6 8 8
Segment profit/(loss) 14,530 809 780 629 2,828 (435) 19,141
Assets
Segment assets
5,10
594,243 27,501 18,874 21,523 124,191 (134,442) 651,890
Capital expenditure
8
20,049 7 104 26 2,639 – 22,825
Segment liabilities 379,176 16,999 10,715 13,402 37,239 (91,332) 366,199
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
17

NOTES TO THE
FINANCIAL STATEMENTS
continued
1. SEGMENTAL REPORTING (CONTINUED)
1. Intersegment revenues are eliminated on consolidation. Intercompany profit margins are also eliminated.
2. Interest expense is net of any interest capitalised to long-term assets. During the period $589,000 (December 2015: $2,334,000) was capitalised
to long-term assets.
3. Depreciation and amortisation expenses presented above are gross of $6,519,000 (December 2015: $5,550,000) which has been included within
inventory.
4. Segment income tax expense does not include the deferred tax impacts of temporary differences arising from intercompany stock margin eliminations
as these are managed on a group level.
5. Segment assets include the value of investments and loan balances for subsidiaries which reside in Delegat Limited however do not include the
effects of stock margin eliminations for stock on hand in subsidiaries.
6. For the six months ended 31 December 2016 Delegat Australia Pty Limited had a single customer which comprised 10% or more of Group sales
amounting to $21,352,000.
7. For the six months ended 31 December 2015 Delegat Australia Pty Limited had a single customer which comprised 10% or more of Group sales
amounting to $16,823,000 and Delegat USA, Inc. had a single customer which comprised 10% or more of group sales amounting to $14,811,000.
8. Capital expenditure consists of additions of property, plant and equipment inclusive of capitalised interest. Capital expenditure is included within
each of the reported segment assets noted above.
9. The eliminations and adjustments of segment profit, assets and liabilities relate to intercompany transactions and balances which are eliminated on
consolidation.
10. Other segments’ assets include non-current assets of Barossa Valley Estate Pty Limited of $44,413,000 (December 2015: $38,069,000) which are
located in Australia.
For the 6 months ended
31 December 2015 - Restated*
Delegat
Limited
$000
Delegat
Australia
Pty Ltd
$000
Delegat
Europe
Limited
$000
Delegat
USA, Inc.
$000
Other
Segments
$000
Eliminations
and
Adjustments
9
$000
6 months ended
31 December
2015
$000
Operating income
External sales
7
31,622 40,690 42,941 40,590 1,374 (23,273) 133,94 4
Internal sales 106,509 – – – 6,461 (112,970) –
Total segment revenues
1
138,131 40,690 42,941 40,590 7,835 (136,243) 133,94 4
Interest revenue 8 4 – – 2,805 (2,804) 13
Operating expenses
Interest expense
2
6,373 – – – 850 (2,804) 4,419
Depreciation and amortisation
3
6,309 68 6 36 571 – 6,990
Income tax expense/(credit)
4
7,549 309 226 425 204 (244) 8,469
Segment profit/(loss) 19,462 487 1,179 590 440 (625) 21,533
Assets
Segment assets
5,10
506,816 24,134 15,498 11,133 121,830 (106,389) 573,022
Capital expenditure
8
47,017 5 1 12 8,877 – 55,912
Segment liabilities 330,045 14,842 6,750 4,281 63,012 (100,702) 318,228
* The financial statements for the periods ended 30 June 2016 and 31 December 2015 have been restated following the adoption of Amendments to NZ IAS 16: Property, Plant and Equipment
and NZ IAS 41: Agriculture on 1 July 2016. Refer to Statement of Accounting Policies.
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
18

2. EXPENSES
Expenses by function have been categorised as follows:
Unaudited
Dec 2016
6 Months
$000
Audited
June 2016
12 M o nths
$000
Restated*
Unaudited
Dec 2015
6 Months
$000
Restated*
Cost of sales 6 7, 3 4 1 105,094 61,300
Selling, marketing and promotion expenses 30,003 54,569 29,916
Corporate governance expenses 417 906 393
Administration expenses 4,922 9,917 7,914

NOTES TO THE
FINANCIAL STATEMENTS
continued
* The financial statements for the periods ended 30 June 2016 and 31 December 2015 have been restated following the adoption of Amendments to NZ IAS 16: Property, Plant and Equipment
and NZ IAS 41: Agriculture on 1 July 2016. Refer to Statement of Accounting Policies.
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
19

3. RECONCILIATION OF PROFIT FOR THE PERIOD WITH NET CASH FLOWS
FROM OPERATING ACTIVITIES
Unaudited
Dec 2016
6 Months
$000
Audited
June 2016
12 M o nths
$000
Restated*
Unaudited
Dec 2015
6 Months
$000
Restated*
Reported profit after tax 19,141 4 8,113 21, 533
Add/(deduct) items not involving cash flows
Amortisation of leases 107 251 138
Depreciation expense 7, 0 1 0 12,403 6,852
Other non-cash items (707) (3,114) (1,629)
Gain on disposal of assets (225) (547) (4 49)
Movement in derivative financial instruments (608) (4,716) (5,361)
Movement in deferred tax assets (102) 160 40
Movement in deferred tax liabilities 3,257 6,482 4,615
2 7, 8 7 3 59,032 25,739
Movement in working capital balances are as follows:
Trade payables and accruals (2,310) 1,451 (3,382)
Trade and other receivables (11,70 4) (804) (9,830)
Inventories 15,770 (17,722) 8,211
Income tax (4,950) ( 2 , 9 4 0 ) ( 7, 2 7 8 )
(3,194) (20,015) (12,279)
Add items classified as investing and financing activities
Capital purchases included within trade payables and inventories 177 3,434 1,6 02
(3,017) (16,581) (10,677)
Net Cash Inflows from Operating Activities 24,856 42,451 15,0 62
4. ACQUISITION AND DISPOSAL OF ASSETS
During the six months ended 31 December 2016 the Group incurred total capital expenditure of $22,825,000
(31 December 2015: $55,912,000). There were no significant asset disposals in the six month period ended
31 December 2016.
5. CAPITAL COMMITMENTS
The estimated capital expenditure contracted for at 31 December 2016 but not provided for is $10,730,000
(31 December 2015: $44,518,000).
NOTES TO THE
FINANCIAL STATEMENTS
continued
* The financial statements for the periods ended 30 June 2016 and 31 December 2015 have been restated following the adoption of Amendments to NZ IAS 16: Property, Plant and Equipment
and NZ IAS 41: Agriculture on 1 July 2016. Refer to Statement of Accounting Policies.
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
20

Directors
Jakov Nikola Delegat
Rosemari Suzan Delegat
Robert Lawrence Wilton
Shelley Jane Cave
Alan Trevor Jackson
Graeme Stuart Lord
Registered Office
Level 1, 10 Viaduct Harbour Avenue
Auckland 1010
PO Box 91681
Victoria Street West
Auckland 1142
Banker
Westpac Banking Corporation
318 Lambton Quay
PO Box 691
Wellington 6140
Solicitors
Jones Young
Level 19, BDO Tower
120 Albert Street
PO Box 189
Shortland Street
Auckland 1140
Auditors
Ernst & Young
EY Building
2 Takutai Square
Britomart
Auckland 1010
Share Registrar
Computershare Investor Services Limited
Private Bag 92119
Auckland 1142
Level 2, 159 Hurstmere Road
Takapuna
Auckland 0622
Managing your shareholding online:
To change your address, update your payment
instructions and to view your registered details
including transactions please visit
www.investorcentre.com/NZ
General enquiries can be directed to:
enquiry@computershare.co.nz
Private Bag 92119
Auckland 1142
Telephone:
+64 9 488 8777
Facsimile:
+64 9 488 8787
Please assist our registry by quoting your CSN or
shareholder number.
DIRECTORY
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
21

Experience the wines that made the Barossa great.
barossavalleyestate.com
—
Barossa Valley Estate Shiraz, 90 Points, James Halliday
—
In recently awarding our
Barossa Valley Estate Shiraz 2014
with 90 Points, leading wine writer
and senior wine critic James Halliday
compared it to “a V8 turbo engine”
that “also knows how to quietly
mooch along for a Sunday drive...
there’s a surprising lightness of foot,
so pick your time and your speed.”
Moving praise indeed.
JAMES HALLIDAY
WAS QUITE MOVED.