MOA growth continues with strategy underway in China

Moa Group Limited




30 November 2017

MOA GROWTH CONTINUES WITH STRATEGY UNDERWAY IN CHINA.

Moa Group Limited ( NZX:MOA ) today releases its interim result for the six months to 30 September
2017 and gives a market update.

Moa, New Zealand’s largest New Zealand owned brewer, continues to grow both in New Zealand and
in its focus export market of China where it has now established a beach head with new distribution
partners.

Revenue for Moa grew from $3.74 m for the same period last year to $4.55 m in this year. A growth of
21%.

Gross Profit grew from $1.02 m for the same period last year to $1.31 m. A growth of 29%.

In this period Moa has invested in key areas that will drive future growth -

Investing in China where Moa has set up and employed its first China based team member to
build sales with the new distribution partners underway. This will give greater access to bars,
restaurants and supermarkets in key cities and already sales are up 200% on the previous
year over the last 4 months as new business builds.

Investing in new products for all markets and marketing campaigns at the time of the Lions
Tour and Americas Cup (previously these investments were timed in the second half of the
year).

Based on the timing of these investments expenses for the period were higher and EBITDA loss did
move from $1.14 to $1.29 m.

The Company is aiming to deliver a full year EBITDA which will demonstrate continued growth and
improvements in all the key measures of the business.

Moa CEO Geoff Ross says “Whilst we have been in China for some time we now see this market as
our most promising export market. Working with new local partners and with our own person in
market, we have some very good opportunities. China has a great respect for New Zealand food and
beverage, and is developing a taste for Craft Beer. We are excited about our prospects there”.

Moa also undertook a heavy period of new product development. Highlights include the Milk
Chocolate Stout Collaboration with Lewis Road, and the launch of its new Station IPA and Dry
Hopped Pilsner in the brands Classic Range. “Whilst early days these new beers seem to be off to a
great start and well timed for summer” says Ross.

The Company will give a market update post summer trading in New Zealand and with several months
of trading underway with new Chinese partners — late March.

For more information contact Geoff Ross. 021 424219.

---

Moa Group Limited
Financial Statements
for the six months ended
30 September 2017

Moa Group Limited
Index to the Financial Statements
30 September 2017



Page
Unaudited Interim Statement of Comprehensive Income 2
Unaudited Interim Statement of Financial Position 3
Unaudited Interim Statement of Movement in Equity 4
Unaudited Interim Statement of Cash Flows 5
Notes to the Financial Statements 6-12

2

Moa Group Limited
Interim Statement of Comprehensive Income
For the 6 months ended 30 September 2017





* refer to note 11

The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

All profit/(loss) and total comprehensive profit/(loss) is attributable to the Parent Company shareholders and is from continuing
operations.














6 MONTHS ENDED6 MONTHS ENDED12 MONTHS ENDED
30 SEPTEMBER 201730 SEPTEMBER 201631 MARCH 2017
RESTATED*
UNAUDITEDUNAUDITEDAUDITED
NOTES$'000$'000$'000
Revenue4,547 3,743 10,245
Cost of sales(3,235) (2,681) (7,192)
Gross profit1,311 1,017 3,053
Expenses:
Distribution(445) (371) (978)
Administration(958) (1,055) (2,011)
Sales and marketing(1,387) (977) (2,381)
Finance income and expense2 (5) 7
Total expenses(2,789) (2,408) (5,363)
Other gains / (losses)5(11) 13 (42)
Loss before income tax(1,488) (1,333) (2,352)
Income tax expense- - -
Loss for the period(1,488) (1,333) (2,352)
Other comprehensive income and expenses- - -
Total comprehensive loss for the period(1,488) (1,333) (2,352)
Losses per share for loss attributable to the ordinary equity holders of the Company during the period
Basic losses (cents per share)(2.7) (2.6) (4.6)
Diluted losses (cents per share)(2.7) (2.6) (4.6)
Loss before income tax(1,488) (1,333) (2,352)
Adjusted for:
Depreciation & Amortisation202 191 400
Finance income and expense(2) 3 (7)
Earnings before interest, tax, depreciation and amortisation (EBITDA)(1,288) (1,139) (1,959)

3

Moa Group Limited
Interim Statement of Financial Position
As at 30 September 2017




* refer to note 11

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

The Board of Directors authorised the statements presented on pages 2 to 12 for issue on 29 November 2017.
For and on behalf of the Board

Geoff Ross
Director and CEO

John Ashby
Chairman of the Audit and Risk Committee


30 SEPTEMBER 201730 SEPTEMBER 201631 MARCH 2017
RESTATED*
UNAUDITEDUNAUDITEDAUDITED
NOTES$'000$'000$'000
ASSETS
CURRENT ASSETS
Cash and cash equivalents1,526 3,133 2,700
Trade and other receivables2,126 1,665 2,085
Derivative Financial Instruments- - 6
Inventories1,830 1,972 1,824
Total current assets5,482 6,770 6,615
NON CURRENT ASSETS
Trade and other receivables180 - -
Plant and equipment62,505 2,601 2,579
Intangibles7491 516 529
Total non-current assets3,176 3,117 3,108
Total assets8,659 9,887 9,723
LIABILITIES
CURRENT LIABILITIES
Trade and other payables2,087 2,486 2,093
Derivative financial instruments6 16 -
Total current liabilities2,092 2,501 2,093
Total liabilities2,092 2,501 2,093
Net assets6,566 7,385 7,630
EQUITY
Contributed equity826,482 24,794 26,041
Reserves95 96 113
Accumulated losses(20,011) (17,505) (18,524)
Total Equity6,566 7,385 7,630

4


Interim Statement of Movements in Equity
For the 6 months ended 30 September 2017





*refer to note 11

The above Statement of Movements in Equity should be read in conjunction with the accompanying notes.

ATTRIBUTABLE TO EQUITY HOLDERS OF MOA GROUP LIMITED
SHARE CAPITAL
ACCUMMULATED
LOSSES
SHARE
ENTITLEMENT
RESERVETOTAL EQUITY
$'000$'000$'000$'000
Opening balance as at 1 April 201622,145 (16,172) 67 6,040
Total comprehensive loss for the period (Restated*)- (1,333) - (1,333)
Share based payments- - 29 29
Issue of shares in lieu of fees44 - - 44
Net proceeds from issue of new shares2,605 - - 2,605
Balance as at 30 September 201624,794 (17,505) 96 7,385
Total comprehensive loss for the period- (1,019) - (1,019)
Share based payments- - 17 17
Issue of shares in lieu of fees35 - - 35
Net proceeds from issue of new shares1,210 - - 1,210
Employee share options exercised2 - - 2
Balance as at 31 March 201726,041 (18,524) 113 7,630
Total comprehensive loss for the period- (1,488) - (1,488)
Share based payments- - 15 15
Issue of shares in lieu of fees40 - - 40
Net proceeds from issue of new shares319 - - 319
Employee share options exercised82 - (33) 49
Balance as at 30 September 201726,482 (20,011) 95 6,566

5




Moa Group Limited
Interim Statements of Cash Flows
For the 6 months ended 30 September 2017






*refer note 11


The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
6 MONTHS ENDED6 MONTHS ENDED12 MONTHS ENDED
30 SEPTEMBER 201730 SEPTEMBER 201631 MARCH 2017
RESTATED*
UNAUDITEDUNAUDITEDAUDITED
NOTES$'000$'000$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers5,662 4,997 12,896
Payments to suppliers and employees(7,057) (5,550) (14,928)
Interest received2 7 7
Direct/indirect taxation received/(paid)(59) (75) (9)
Net cash flow from operating activities10(1,451) (621) (2,034)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment(78) (415) (621)
Payments for intangibles(12) - (24)
Net cash flow from investing activities(90) (415) (645)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from issue of shares8368 2,605 3,815
Net cash flow from financing activities368 2,605 3,815
Net Increase/(decrease) in cash and cash equivalents(1,174) 1,569 1,136
Cash and cash equivalents at the beginning of the period2,700 1,564 1,564
Cash and cash equivalents at the end of the period1,526 3,133 2,700

6

1 General information
Moa Group Limited (‘the Parent’ or ‘Company’) and its subsidiary (together ‘the Group’) operate in the beverage
sector, brewing and distributing super premium craft beer and cider. The Company has operations in New Zealand
and sells predominantly to the New Zealand market, with a focus on growing exports to Asia and sales to other
international markets.
The Group’s business is highly seasonal with the October to March period representing a disproportionate share of
revenue and cash receipts.
The address of its registered office is 70 Richmond Road, Grey Lynn, Auckland, 1021.
These consolidated interim financial statements have been approved for issue by the Board of Directors on 29
November 2017.

2 Basis of preparation of interim year report
The Group consists of profit-oriented companies and the condensed consolidated interim financial information for the
six months ended 30 September 2017 has been prepared in accordance with New Zealand Generally Accepted
Accounting Practice (NZ GAAP). These financial statements comply with NZ IAS 34 ‘Interim Financial Reporting’ and
with International Accounting Standard 34 (IAS 34). The condensed consolidated interim financial information should
be read in conjunction with the annual financial statements for the period ended 31 March 2017, which have been
prepared in accordance with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and
International Financial Reporting Standards (IFRS).

3 Summary of significant accounting policies
The accounting policies applied are consistent with those applied when preparing the annual financial statements for
the year ended 31 March 2018.

There are no new accounting standards, or amendments to existing standards that are effective for the year ending
31 March 2017 which are expected to have a material impact on the Group.

7

4 Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Board of Directors.

Although certain geographies do not currently meet the NZ IFRS 8 quantitative thresholds, management has
concluded that these segments should be reported as they are closely monitored by the chief operating decision
maker as potential growth segments and are expected to materially contribute to Group revenue in the future.

The chief operating decision maker assesses the performance of the operating segments based on a measure of
EBITDA (Earnings before interest, taxation, depreciation and amortisation). Interest income and costs are not
allocated to segments as this type of activity is driven by the Group’s head office function which manages the cash
position of the Group. Head office costs are allocated to New Zealand as this segment represents the largest
proportion of the Group’s sales.

The segment information provided to the chief operating decision maker for the reportable segments is as
follows:




Revenues from external customers are derived from the sale of goods in the beverage sector.

The total of non-current assets is $3,176,000 (31 March 2017: $3,108,000; 30 September 2016: $3,117,000), all of
which are located in New Zealand.

Segment assets and liabilities are not included within the reporting to the chief operating decision maker and hence
have not been included within the segment information tables above.


NEW ZEALANDAUSTRALIAEXPORTTOTAL
$'000$'000$'000$'000
Segment revenue3,323 118 303 3,743
EBITDA(1,034) (56) (49) (1,139)
Depreciation and amortisation(191) - - (191)
Income tax expense- - - -
Expenditure on fixed and intangible assets416 - - 416
NEW ZEALANDAUSTRALIAEXPORTTOTAL
$'000$'000$'000$'000
Segment revenue9,472 321 451 10,245
EBITDA(1,868) (215) 124 (1,959)
Depreciation and amortisation(400) - - (400)
Income tax expense- - - -
Expenditure on fixed and intangible assets668 - 668
NEW ZEALANDAUSTRALIAEXPORTTOTAL
$'000$'000$'000$'000
Segment revenue4,155 88 391 4,547
EBITDA(1,110) (140) (36) (1,288)
Depreciation and amortisation(202) - - (202)
Income tax expense- - - -
Expenditure on fixed and intangible assets91 - - 91
12 MONTHS ENDED 31 MARCH 2017
6 MONTHS ENDED 30 SEPTEMBER 2017
6 MONTHS ENDED 30 SEPTEMBER 2016

8

5 Other gains/(losses)




6 Plant and equipment





7 Intangible assets


The Group’s intangible assets include the resource consent issued for the Group’s brewery in Blenheim which are
amortised over the life of the consent.
6 MONTHS ENDED6 MONTHS ENDED12 MONTHS ENDED
30 SEPTEMBER 201730 SEPTEMBER 201631 MARCH 2017
UNAUDITEDUNAUDITEDAUDITED
$'000$'000$'000
Foreign exchange gains/(losses)(11) 11 (14)
Gains/(losses) on disposal of assets- - (28)
Sundry income- 2 -
Total(11) 13 (42)
6 MONTHS ENDED6 MONTHS ENDED12 MONTHS ENDED
30 SEPTEMBER 201730 SEPTEMBER 201631 MARCH 2017
UNAUDITEDUNAUDITEDAUDITED
$'000$'000$'000
Opening net book amount2,579 2,346 2,345
Additions88 416 621
Disposals- - (50)
Depreciation(161) (161) (337)
Closing net book amount2,505 2,601 2,579
6 MONTHS ENDED6 MONTHS ENDED12 MONTHS ENDED
30 SEPTEMBER 201730 SEPTEMBER 201631 MARCH 2017
UNAUDITEDUNAUDITEDAUDITED
$'000$'000$'000
Opening net book amount529 545 545
Additions3 - 47
Amortisation(41) (29) (63)
Closing net book amount491 516 529

9

8 Contributed equity



The total number of authorised ordinary voting shares is 54,549,111. All issued shares are fully paid except the
treasury shares where no value has been ascribed.

The unlisted non-voting shares issued to directors are entitled to distributions and therefore have been included
within contributed equity in the appropriate periods. Treasury stock is held for future transactions when a value will be
ascribed.


Unlisted non-voting shares

The terms of appointment of directors stipulates they take 20% of their fees in shares at market prices instead of
cash although under the terms of the Company’s constitution directors can elect to receive all fees by way of Group
shares.

To comply with the Takeovers Code, The Business Bakery LP on behalf of Geoff Ross and Pioneer Capital on behalf
of Craig Styris have elected to take unlisted non-voting ordinary shares in lieu of director purchases where
necessary.

At the time of the placement of 3,767,124 ordinary shares and 1,728,184 ordinary share by way of rights issue
726,234 unlisted non-voting shares were converted to ordinary shares.

Craig Styris has purchased 13,004 ordinary shares on market that have been reclassified as unlisted non-voting
shares.

Unlisted non-voting ordinary shares have the same rights and terms and rank equally with ordinary shares except
they do not carry voting rights.

Shares issued to directors in lieu of fees

In August 2015 the board approved the Salary Reinvestment Scheme which enabled employees and executive
directors to receive ordinary shares in the Company instead of a proportion of their cash remuneration.

Shares issued under the scheme are valued at a 20-day volume weighted average price.


CONTRUBUTED
SHARES$000sSHARES$000sCAPITAL $000
At 1 April 201647,264,134 22,039 726,234 106 22,145
Non voting shares converted726,234 106 (726,234) (106) -
Shares issued to directors in lieu of fees88,033 44 - - 44
Placement shares3,767,124 2,750 - - 2,750
Issue costs(145) - - (145)
At 30 September 201651,845,525 24,794 - - 24,794
-
Non voting shares converted-
Shares issued to directors in lieu of fees43,210 35 - - 35
Rights issue1,728,184 1,210 - - 1,210
Staff options exercised13,168 2 - - 2
At 31 March 201753,630,087 26,041 - - 26,041
-
Voting shares converted(13,004) (6) 13,004 6 -
Staff options exercised222,483 82 - - 82
Shares issued to directors in lieu of fees81,559 40 - - 40
Placement shares627,986 329 - - 329
Issue costs- (10) - - (10)
Treasury Stock issued- - 85,666 - -
At 30 September 201754,549,111 26,476 98,670 6 26,482
ORDINARYUNLISTED NON VOTING

10

Share placements and rights issues

In September 2016 3,767,124 ordinary shares were issued to institutional investors. In order to provide the
opportunity for existing Moa shareholders to invest at the same price a 1:30 rights issue offer was made and, from
this rights offer, 1,728,184 ordinary shares were issued.

In July 2017 627,986 ordinary shares were issued in a private placement.

MOA Employee Share Option Plan

In July 2015 the directors approved the MOA Employee Share Option Plan. Options allow eligible staff to subscribe
for ordinary shares in the Company at an exercise price. Options are vested in equal tranches on the first to third
anniversaries of the date of issuance while the eligible employees remain in full time employment with the Group.
Once vested the options can be exercised at any time up to the second April following vesting. Employees can pay
the exercise price in shares using the 20-day Volume Weighted Average Price of MOA shares up to the date of
issuance.

In September 2015 1,220,000 options were granted at an exercise price of $0.282.

In June 2017 120,000 options were granted at an exercise price of $0.443.

The options have been valued using the Black-Scholes pricing model.

To date 235,651 staff options have been exercised to ordinary shares at a value of $81,000. This value includes the
option value and the employee payments on exercise.



9 Related party transactions
(a) Directors

The Directors serving during the period were:
Date of appointment
Ashley Waugh Independent Director
Independent Chairman
30 September 2014
29 January 2015

Geoff Ross Chief Executive Officer 27 August 2012

Craig Styris Non-Executive Director 27 August 2012

Allan Scott Non-Executive Director 27 August 2012 retired 27 September 2017

David Poole Executive Director 17 September 2015

John Ashby Independent Director 28 January 2015

Sheena Henderson Independent Director 1 October 2017

GRANTEDLAPSEDEXERCISEDBALANCE$000SShares$000s
Pre 31 March 201524
Vesting October 2016406,667 (40,000) (266,667) 100,000 9 235,651 81
Vesting October 2017406,667 (66,667) 340,000 37
Vesting October 2018406,666 (66,667) 339,999 25
September 2015 grants1,220,000 (173,334) (266,667) 779,999 71 235,651 81
Vesting October 201740,000 40,000 -
Vesting October 201840,000 40,000 -
Vesting October 201940,000 40,000 -
June 2017 grants120,000 - - 120,000 - - -
Total Options1,340,000 (173,334) (266,667) 899,999 95 235,651 81
ORDINARY SHARES ISSUEDOPTIONS

11



(b) Board and key management remuneration

Under an agreement between Moa Group Limited and The Business Bakery LP dated 10 October 2012, Chief
Executive Officer Geoff Ross charged the Group for management fees in the period totalling $90,000 (6 months to
September 2016: $120,000) . Craig Styris’ directors fees are charged through Pioneer Capital Management Ltd and
director fees for the period were payable to Ashley Waugh, John Ashby and Allan Scott. David Poole received
directors fees in the period and management fees of $15,000 (6 months to September 2016: $30,000) through an
associated company 1
st
Seed Ltd.


(c) Other transactions

Moa Brewing Company leases its Jackson Road, Marlborough premises from Allan Scott Wines & Estates Ltd
(“ASWEL”) under a Deed of Lease agreement dated 17 September 2010. ASWEL also provides various
warehousing, maintenance, and production services to the company pursuant to a services agreement dated 17
September 2010. Costs charged under these arrangements totalled $18,100 for the period (30 September 201:
$18,707).



(d) Balances with related parties arising from sale & purchase of goods & services





6 MONTHS ENDED6 MONTHS ENDED12 MONTHS ENDED
30 SEPTEMBER 201730 SEPTEMBER 201631 MARCH 2017
UNAUDITEDUNAUDITEDAUDITED
$'000$'000$'000
Director Fees126 122 242
Management Fees105 150 300
Senior employees' short term benefits225 234 364
Share based payments6 29 23
462 535 929
6 MONTHS ENDED6 MONTHS ENDED12 MONTHS ENDED
30 SEPTEMBER 201730 SEPTEMBER 201631 MARCH 2017
UNAUDITEDUNAUDITEDAUDITED
$'000$'000$'000
RECEIVABLES FROM RELATED PARTIES
- Allan Scott Wines and Estates Ltd1 5 7
- Senior executives14 1 22
Total15 6 29
PAYABLES TO RELATED PARTIES
- Senior executives- - 2
- A Scott7 15 -
- A Waugh14 13 -
- Strategy in Action (J Ashby)5 10 1
- 1st Seed Ltd (D Poole)10 30 11
- The Business Bakery LP (G Ross)35 47 24
- Pioneer Capital Partners (C Styris)12 12 12
Total83 127 50

12

10 Reconciliation of loss after income tax to net cash flows from operating activities


11 Restatement of interim results to 30 September 2016

In April 2016 the Group implemented a new computer system and subsequently identified adjustments to the
financial statements reported at 30 September 2016. The adjustments are that cost of sales and loss was
understated by $105,000.

There is no restatement of the Financial Statements at 31 March 2017.

In these Financial Statements the comparative figures for 30 September 2016 have been restated as follows:

In the Statement of Comprehensive Income Cost of Sales is increased from $2,576,000 to $2,681,000 and the
losses increased from $1,228,000 to $1,333,000.

In the Statement of Financial Position Trade and other payables, Total liabilities and Accumulated losses are
increased by $105,000. Net Assets and Total equity are reduced by $105,000.

In the Statement of Movements in Equity the accumulated losses are increased by $105,000.

In note 4 the New Zealand segment EBITDA loss is increased $105,000.

In note 10 the Loss and the increase in Trade Payables are both increased by $105,000.


12 Capital commitments
There are no material capital commitments at 30 September 2017.

13 Events occurring after balance date
From 26 November 2017 ParrotDog Brewery in Wellington will take back distribution of their products in New
Zealand.


6 MONTHS ENDED6 MONTHS ENDED12 MONTHS ENDED
30 SEPTEMBER 201730 SEPTEMBER 201631 MARCH 2017
UNAUDITEDUNAUDITEDAUDITED
$'000$'000$'000
Loss for the period(1,488) (1,333) (2,352)
Depreciation and amortisation202 190 400
Loss on disposal of fixed assets- - 28
Foreign exchange (gains)/losses12 - 14
Shares in lieu of fees40 44 79
Share based payments(18) 29 46
Movements in working capital:
(Increase) / decrease in inventories(6) (157) 9
(Increase) / decrease in trade and other receivables(222) 14 (407)
Increase in trade and other payables29 592 149
Net cash outflow from operating activities(1,451) (621) (2,034)

13

Corporate Directory


Directors

ASHLEY WAUGH Independent Chairman
GEOFF ROSS Chief Executive Officer
DAVID POOLE Non Executive Director
CRAIG STYRIS Non Executive Director
JOHN ASHBY Independent Director
SHEENA HENDERSON (from 1 October 2017) Independent Director


Financial Calendar

Interim results announced November
Interim report published December
End of financial year 31 March
Annual results announced May
Annual report published June


Registered Office and address for service

70 Richmond Road, Grey Lynn, Auckland 1021
Phone +64 9 367 9841 Facsimile +64 9 637 9471 www.moabeer.com


Auditor – KPMG


Banker – Bank of New Zealand


Solicitors – Chapman Tripp


Company Publications – the Company informs investors of the Company’s business and operations by issuing an
Annual report and an Interim Report.


Share register and shareholder enquiries

Shareholders with enquiries about transactions or changes of address should contact the share register

Link Market Services Limited
Level 7, Zurich House, 21 Queen Street, Auckland, PO Box 91976, Auckland 1142
Phone +64 9 375 5998 | Facsimile +64 9 375 5990

Other questions should be directed to the Company’s Secretary at the registered address.


Stock Exchange – the company’s shares trade on the NZX main board equity security market operated by NZX
under the code MOA.