DGL – 2018 Interim Results to 31 Dec 17

DELEGAT GROUP LIMITED
Results for announcement to the market
Reporting Period 6 months to 31 December 2017
Previous Reporting Period 6 months to 31 December 2016

Amount (000s) Percentage change
Revenue from ordinary activities $136,909 +0%
Operating Profit from ordinary
activities after tax (Operating
NPAT)
$26,884 +9%
Operating Profit from ordinary
activities before interest, tax and
depreciation (Operating
EBITDA)
$50,944 +5%
Reported Profit from ordinary
activities after tax attributable to
shareholders (Reported NPAT)
$19,434 +2%
Net profit attributable to
shareholders
$19,434 +2%

Audit The financial statements attached to this report have not been
audited.

Comments Refer to the Executive Chairman’s Report appended.

Interim Dividend Cents per share Cents per share (imputed)
Not Applicable Not Applicable

Net Tangible Assets per share
Current Year Previous corresponding year
Net Tangible Assets per share $3.12 $2.82

DELEGAT GROUP LIMITED INTERIM REPORT 2018
Oyster Bay’s consistently strong growth in the world’s largest wine market
has been applauded by Impact Magazine, who have awarded it Hot Brand
Award for the 8th consecutive year.

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
Notes to the Financial
Statements
Directory
Notes
1
6
7
8
10
12
15
20
21

On behalf of the Board of Directors of Delegat Group Limited, I am pleased to present
its operating and financial results for the six months ended 31 December 2017.
Performance Highlights
• Global case sales of 1,377,000.
• 10% sales growth in the key North America region.
• Record Operating NPAT of $26.9 million.
• Capital investment of $21.7 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 an eighth consecutive year.
• Oyster Bay Marlborough Chardonnay 2016 received a Gold Medal and 90 points
at the San Francisco International Wine Competition 2017.
• Oyster Bay Marlborough Pinot Noir 2015 received a Double Gold Medal and
95 points at the San Francisco International Wine Competition 2017.
The Group presents its financial statements in accordance with the New Zealand
equivalents to International Financial Reporting Standards (NZ IFRS).
To provide further insight into the Group’s underlying operational performance, the
Group has also included in this report an Operating Performance Report. This Operating
Performance Report excludes the impact of fair value adjustments required under NZ
IFRS for grapes and derivative instruments. As a fully integrated winemaking and sales
operation, Operating Profit includes the fair value adjustment in respect of grapes when
packaged wine is sold rather than on harvest of the grapes, and the fair value adjustment
on derivative instruments when these foreign exchange contracts and interest rate swaps
are realised.
“Delegat achieved record Operating
NPAT in the first half of the 2018
financial year.”

JI M DE LEGAT
EXECUTIVE CHAIRMAN
Executive Chairman’s Report 2018
DELEGAT INTERIM REPORT 2018 EXECUTIVE CHAIRMAN’S REPORT
1

The Group has included a reconciliation of Operating Profit to Reported Profit which
eliminates from each line in the Statement of Financial Performance the impact of these
fair value adjustments
1
.
Operating Performance
A record Operating NPAT of $26.9 million was generated compared to $24.7 million
for the same period the previous year. Operating EBIT of $43.4 million is $2.0 million
higher than for the same period the previous year.
Delegat achieved Operating Revenue of $136.9 million on global case sales of 1,377,000
in the six month period. Revenue is up $1.1 million on the same period last year due to
the favourable impact of foreign exchange rate changes and increased in-market pricing,
partially offset by a 5% decrease in global case sales.
The Group’s case sales performance and foreign currency rates achieved are detailed
in table 2. In the key North America region, strong case sales growth of 10% was
achieved. In the Australia, New Zealand and Asia Pacific region case sales declined 6%
based on a return to more typical levels of promotional activity during November and
December, compared to the higher levels experienced in the prior year. In the United
Kingdom, Ireland and Europe region, case sales declined 20% as in the prior year higher
than normal sales were achieved in the first half due to additional promotional activity
and customers ordering ahead of price increases. Overall Group case sales declined 5%
relative to the prior comparable period, with first half sales volumes expected to account
for 50% of forecast full year case sales.
1

Operating Performance is a non-GAAP measure and as such does not have a standardised meaning prescribed by GAAP. It may therefore not be comparable
to non-GAAP measures presented by other entities.

Dec 2017 Dec 2016 % change
NZ$ millions Actual Actual vs 2016
Operating Revenue
1
136.9 135.8 1%
Operating Gross Profit
2
80.0 76.7 4%
Operating Gross Margin 58% 56%
Operating Expenses
3
(36.6) (35.3) -3%
Operating EBIT
4
43.4 41.4 5%
Operating EBIT % of Revenue 32% 30%
Interest and Tax (16.5) (16.7) 1%
Operating NPAT
4
26.9 24.7 9%
Operating NPAT % of Revenue 20% 18%
Operating EBITDA
4
50.9 48.5 5%
Operating EBITDA % of Revenue 37% 36%
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).
4. Operating EBIT, EBITDA and NPAT are before any fair value adjustments.
TABLE 1
Operating Performance
DELEGAT INTERIM REPORT 2018 EXECUTIVE CHAIRMAN’S REPORT
2

Operating Gross Margin is up 4% on the same period last year. This is due to the
favourable impact of foreign exchange rate changes, the price increase implemented in
the United Kingdom from 1 April 2017, and lower cost of sales per case associated with
sales of the higher yielding 2016 and 2017 vintages. Operating expenses (before NZ
IFRS adjustments) at $36.6 million are $1.3 million higher compared to the same period
the previous year. This is due to the impact of a stronger New Zealand currency on the
translation of off-shore expenditure and an increase in people-related costs.
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 Sales when inventory is sold in subsequent years. This
represents the reversal of prior periods’ fair value adjustments in respect of biological
produce as finished wine is sold in subsequent years. This adjustment has resulted
in a write-down of $8.9 million for the period (December 2016: write-down of
$8.3 million);


Dec 2017 Dec 2016 % change
Case Sales (000s) Actual Actual vs 2016
UK, Ireland and Europe 358 449 -20%
North America (USA and Canada) 568 518 10%
Australia, NZ and Asia Pacific 451 479 -6%
Total Cases 1,377 1,446 -5%

Foreign Currency Rates
GB£ 0.5323 0.5396 1%
AU$ 0.9119 0.9428 3%
US$ 0.7148 0.7132 0%
CA$ 0.8952 0.9438 5%
TABLE 2
Case Sales and
Foreign Currency
DELEGAT INTERIM REPORT 2018 EXECUTIVE CHAIRMAN’S REPORT
3

2017 2016 % change
NZ$ millions Actual Actual vs 2016
Operating NPAT 26.9 24.7 9%
Operating NPAT % of Revenue 20% 18%
NZ IFRS Fair Value Items
Biological Produce (Grapes)
1
(8.9) (8.3) -7%
Derivative Instruments (1.4) 0.6 n/m
2
Total Fair Value Items (10.3) (7.7) -34%
Less: Tax 2.8 2.1 34%
Fair Value Items after Tax (7.5) (5.6) -34%
Reported NPAT 19.4 19.1 2%
• 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-down of $1.4 million (December 2016: write-up of $0.6 million).
The adjustments, net of taxation, amount to a write-down of $7.5 million (December
2016: write-down of $5.6 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 2017 is reconciled to
Operating Profit as detailed in table 4.
Cash Flow
The Group generated Cash Flows from Operations of $24.2 million in the current half-
year, which is a decrease of $0.6 million on the same period last year. This decrease is due
to financing higher working capital items, primarily in relation to the higher grape intake
from the 2017 vintage. A total of $23.5 million was paid for additional property, plant
and equipment during the period, including vineyard developments in New Zealand and
the Barossa Valley, and development of the Hawke’s Bay and Marlborough wineries,
which will provide earnings growth into the years ahead. The Group distributed
$13.1 million to shareholders in dividends. Additional borrowings of $9.8 million were
drawn down to fund the increased capital investment during the six months.
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
TABLE 3
DELEGAT INTERIM REPORT 2018 EXECUTIVE CHAIRMAN’S REPORT
4

The Group having secured a $350.0 million syndicate senior debt facility in 2014 is well
positioned to fund both its current operations as well as future capital investment in both
New Zealand and Australia. The Group’s Net Debt at 31 December 2017 amounted to
$291.3 million, slightly lower than last half-year and well within the Group’s long-term
bank debt facilities.
Looking Forward
The results achieved in the six months to December 2017 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 2,782,000, up 5% on last year. The Group
forecasts a 2018 operating profit result of at least $40.7 million, up on last year’s record
performance by 6%.
J I M D E L E G A T
EXECUTIVE CHAIRMAN


Operating Fair Value Reported Operating Fair Value Reported
NZ$ millions Adjustment Adjustment
Revenue 136.9 – 136.9 135.8 0.6 136.4
Cost of Sales (56.9) (8.9) (65.8) (59.1) (8.3) (67.4)
Gross Profit 80.0 (8.9) 71.1 76.7 (7.7) 69.0
Operating Expenses (36.6) (1.4) (38.0) (35.3) – (35.3)
EBIT
1
43.4 (10.3) 33.1 41.4 (7.7) 33.7
Interest and Tax (16.5) 2.8 (13.7) (16.7) 2.1 (14.6)
NPAT
2
26.9 (7.5) 19.4 24.7 (5.6) 19.1
EBIT
1
43.4 (10.3) 33.1 41.4 (7.7) 33.7
Depreciation 7.5 – 7.5 7.1 – 7.1
EBITDA
3
50.9 (10.3) 40.6 48.5 (7.7) 40.8
2017 Actual2016 Actual
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.
TABLE 4
Reconciliation of
Reporting to
Operating
Performance
DELEGAT INTERIM REPORT 2018 EXECUTIVE CHAIRMAN’S REPORT
5

The accompanying notes form part of these financial statements
Unaudited
D e c 2017
6 Months
$000
Audited
J un e 2017
12 M o nths
$000
Unaudited
Dec 2016
6 Months
$000
Revenue 136,9 0 9 252,7 13 136,374
Profit before finance costs 33,104 70,258 33,691
Finance costs 6,045 13,114 6,862
Profit before income tax 2 7, 0 5 9 57,144 26,829
Income tax expense 7, 6 2 5 16,488 7,688
Profit for the Period attributable to Shareholders of the Parent Company 19,434 40,656 19,141

Earnings Per Share
– Basic and fully diluted earnings per share (cents per share) 19.22 40.20 18.93
Statement of Financial Performance
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
6

The accompanying notes form part of these financial statements
Unaudited
D e c 2017
6 Months
$000
Audited
J un e 2017
12 M o nths
$000
Unaudited
Dec 2016
6 Months
$000
Profit after income tax 19,434 40,656 19,141
Other comprehensive income that may subsequently
be classified to the profit and loss:
– Translation of foreign subsidiaries 3,063 (1,27 1) (1,415)
– Net (loss) / gain on hedge of a net investment (1,375) (232) 162
– Income tax relating to components of other comprehensive income 385 65 (45)
Total comprehensive income for the period, net of tax 21,507 39,218 17,843
Comprehensive income attributable to Shareholders of the Parent Company 21,507 39,218 17,843
Statement of Other Comprehensive Income
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
7

Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2017 49,815 (5,135) 262,389 3 0 7, 0 6 9
Changes in equity for the period ended 31 December 2017
Other comprehensive income
– Translation of foreign subsidiaries – 3,063 – 3,063
– Net loss on hedge of a net investment – (1,375) – (1,375)
– Income tax relating to components of
other comprehensive income – 385 – 385
Total other comprehensive income – 2,073 – 2,073
– Net profit for the period – – 19,434 19,434
Total comprehensive income for the period – 2,073 19,434 21,507
Equity Transactions
– Dividends paid to shareholders – – (13,153) (13,153)
Unaudited balance at 31 December 2017 49,815 (3,062) 268,670 315,423
FOR THE PERIOD ENDED 31 DECEMBER 2017 (UNAUDITED)
Statement of Changes in Equity
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
8

Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2016 49,815 (3,697) 233,871 279,989
Changes in equity for the year ended 30 June 2017
Other comprehensive income
– Translation of foreign subsidiaries – (1,271) – (1,271)
– Net loss on hedge of a net investment – (232) – (232)
– Income tax relating to components of
other comprehensive income – 65 – 65
Total other comprehensive income – (1,438) – (1,438)
– Net profit for the year – – 40,656 40,656
Total comprehensive income for the year – (1,438) 40,656 39,218
Equity Transactions
– Dividends paid to shareholders – – (12,138) (12,138)
Audited balance at 30 June 2017 49,815 (5,135) 262,389 3 0 7, 0 6 9
Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2016 49,815 (3,697) 233,871 279,989
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) 240,871 285,691
FOR THE YEAR ENDED 30 JUNE 2017 (AUDITED)
FOR THE PERIOD ENDED 31 DECEMBER 2016 (UNAUDITED)
Statement of Changes in Equity continued
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
9

Statement of Financial Position
The accompanying notes form part of these financial statements
Unaudited
D e c 2017
$000
Audited
J un e 2017
$000
Unaudited
Dec 2016
$000
Equity
Share capital 49,815 49,815 49,815
Foreign currency translation reserve (3,062) (5,135) (4,995)
Retained earnings 268,670 262,389 240,871
Total Equity 315,423 307,069 285,691
Liabilities
Current Liabilities
Trade payables and accruals 21,115 29,324 28,880
Derivative financial instruments 1,942 1,987 1,0 63
Interest-bearing loans and borrowings – – 15,000
Income tax payable 133 3,016 –
23,190 34,327 44,943
Non-Current Liabilities
Deferred tax liability 33,706 31,124 32,0 02
Derivative financial instruments 3,775 3,756 5,952
Interest-bearing loans and borrowings (secured) 295,210 282,513 282,510
332,691 317,393 320,464
Total Liabilities 355,881 351,720 365,407
Total Equity and Liabilities 671,304 658,789 651,098

DELEGAT GROUP LIMITED AND SUBSIDIARIES. AS AT 31 DECEMBER 2017
10

Statement of Financial Position continued
The accompanying notes form part of these financial statements
Unaudited
D e c 2017
$000
Audited
J un e 2017
$000
Unaudited
Dec 2016
$000
Assets
Current Assets
Cash and cash equivalents 3,897 4,479 5,472
Trade and other receivables 4 4,875 35,952 55,450
Derivative financial instruments 448 1,822 2,450
Income tax receivable – – 1,612
Inventories 124,224 133,680 114,840
173,444 175,933 179,824
Non-Current Assets
Property, plant and equipment 493,622 478,675 467,696
Intangible assets 4,225 4,068 3,578
Derivative financial instruments 13 113 –
497,860 482,856 471,274
Total Assets 671,304 658,789 651,098
For, and on behalf of, the Board who authorised the issue of the financial statements on 23 February 2018.
JN Delegat, Executive Chairman GS Lord, Managing Director
DELEGAT GROUP LIMITED AND SUBSIDIARIES. AS AT 31 DECEMBER 2017
11

Unaudited
D e c 2017
6 Months
$000
Audited
J un e 2017
12 M o nths
$000
Unaudited
Dec 2016
6 Months
$000
Operating Activities
Cash was provided from
Receipts from customers 133,18 0 256,192 127,429
Net GST received 693 449 1,326
133,873 256,641 128,755
Cash was applied to
Payments to suppliers and employees 95,632 170,603 88,478
Net interest paid 6,446 12,349 5,903
Net income tax paid 7, 5 5 0 14,470 9,518
109,628 197,422 103,899
Net Cash Inflows from Operating Activities 24,245 59,219 24,856

Investing Activities
Cash was provided from
Proceeds from sale of property, plant and equipment 1,7 74 1,162 1,147
Dividends received 1 2 2
1,775 1,16 4 1,149
Cash was applied to
Purchase of property, plant and equipment 22,090 40,545 22,453
Purchase of intangible assets 476 585 –
Capitalised interest paid 899 1,459 589
23,465 42,589 23,042
Net Cash Outflows from Investing Activities (21,690) (41,425) (21,893)

The accompanying notes form part of these financial statements
Statement of Cash Flows
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
12

The accompanying notes form part of these financial statements
Unaudited
D e c 2017
6 Months
$000
Audited
J un e 2017
12 M o nths
$000
Unaudited
Dec 2016
6 Months
$000
Financing Activities
Cash was provided from
Proceeds from borrowings 18,450 33,939 37,982
18,450 33,939 37,982
Cash was applied to
Dividends paid to shareholders 13,142 12,132 12,129
Repayment of borrowings 8,636 39,467 27,694
21,778 51,599 39,823
Net Cash Outflows from Financing Activities (3,328) (17,660) (1,841)
Net (Decrease)/Increase in Cash Held (773) 134 1,122
Cash and cash equivalents at beginning of the year 4,479 4,425 4,425
Effect of exchange rate changes on foreign currency balances 191 (80) (75)
Cash and Cash Equivalents at End of the Period 3,897 4,479 5,472
Statement of Cash Flows continued
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
13

Unaudited
D e c 2017
6 Months
$000
Audited
J un e 2017
12 M o nths
$000
Unaudited
Dec 2016
6 Months
$000
Reconciliation of Profit for the Period with Cash Flows
from Operating Activities:
Reported profit after tax 19,434 40,656 19,141
Add/(deduct) items not involving cash flows
Depreciation expense 7,493 13,791 7,117
Other non-cash items 2,582 (565) (707)
Gain on disposal of assets – (120) (225)
Movement in derivative financial instruments 1,4 48 (1,365) (608)
Movement in deferred tax liability 2,582 2,277 3,155
14,105 14,018 8,732

Movement in working capital balances are as follows:
Trade payables and accruals (8,209) (1,866) (2,310)
Trade and other receivables (8,923) 7,794 (11,704)
Inventories 9,456 (3,070) 15,770
Income tax (2,883) (322) (4,950)

Add items classified as investing and financing activities
Capital purchases included within trade payables and inventories 1,265 2,009 177
(9,294) 4,545 (3,017)
Net Cash Inflows from Operating Activities 24,245 59,219 24,856

Reconciliation of movement in Net Debt:
Opening balance at beginning of the year 278,034 282,723 282,723
Per statement of cash flows:
– Proceeds/(repayment) of borrowings 9,814 (5,528) 10,288
– Net decrease/(increase) in cash held 773 (13 4) (1,122)
Foreign exchange movement 2,615 817 71
Other non-cash movements 77 156 78
Closing balance at end of the Period 291,313 278,034 292,038
Statement of Cash Flows continued
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
14

1. GENERAL INFORMATION
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 2017 were authorised for issue in
accordance with a resolution of the Directors on 23 February 2018.
BASIS OF PREPARATION
The interim financial statements have been prepared in accordance with Generally Accepted Accounting Practice in
New Zealand (NZ GAAP), the requirements of the Companies Act 1993 and the Financial Markets Conduct Act
2013, 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, and other applicable Financial
Reporting Standards (NZ IFRS) 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.
CHANGES IN ACCOUNTING POLICIES
The accounting policies adopted are consistent with those of the previous financial year. Refer to the published
financial statements for the year ended 30 June 2017 for a complete listing of the Group accounting policies.
Notes to the Financial Statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
15

2. 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 monitors 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 2017
Delegat
Limited
$000
Delegat
Australia
Pty Ltd
$000
Delegat
Europe
Limited
$000
Delegat
USA, Inc.
$000
Other
Segments
9
$000
Eliminations
and
Adjustments
10
$000
6 months ended
31 December
2017
$000
Operating income
External sales
7
29,865 46,664 34,581 47,237 3,110 (24,590) 136,867
Internal sales 110,385 – – – 6,647 (117,032) –
Dividend revenue 7,873 – – – 5 (7,869) 9
Interest revenue 1 2 – – 1,808 (1,778) 33
Total segment revenues
1
148,124 46,666 34,581 47,237 11,570 (151,269) 136,9 0 9
Operating expenses
Interest expense
2
7,319 – – – 504 (1,778) 6,045
Depreciation
3
6,589 71 12 32 789 – 7,493
Income tax expense/(credit)
4
5,911 426 304 391 871 (278) 7, 6 2 5
Segment profit/(loss) 23,042 977 1,285 546 2,168 (8,584) 19,434
Assets
Segment assets
5
623,048 25,617 16,363 23,786 123,816 (141,326) 671,304
Capital expenditure
6
21,337 – – – 928 – 22,265
Segment liabilities 366,410 13,016 13,351 14,452 46,271 (97,619) 355,881
Notes to the Financial Statements continued
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
16

2. 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 $899,000 (December 2016: $589,000) was capitalised to
long-term assets.
3. Depreciation expense presented above is gross of $6,849,000 (December 2016: $6,519,000) 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
or fair value adjustments resulting from the purchase of subsidiary companies 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. 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.
7. For the six months ended 31 December 2017 Delegat Australia Pty Limited had a single customer which comprised 10% or more of Group sales
amounting to $20,964,000, and Delegat USA, Inc. had a single customer which comprised 10% or more of Group sales amounting to $23,304,000.
8. 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.
9. Other segments’ assets include non-current assets of Barossa Valley Estate Pty Limited of $49,400,000 (December 2016: $44,413,000) which are
located in Australia.
10. The eliminations and adjustments of segment profit, assets and liabilities relate to intercompany transactions and balances which are eliminated on
consolidation.
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
9
$000
Eliminations
and
Adjustments
10
$000
6 months ended
31 December
2016
$000
Operating income
External sales
8
32,222 46,344 39,010 41,886 1,663 (26,789) 134,336
Internal sales 110,398 – – – 5,555 (115,953) –
Unrealised foreign
exchange gains 911 – 65 – 591 (166) 1,401
Fair value movement on
derivative instruments 608 – – – – – 608
Dividend revenue 19 – – – 5 – 24
Interest revenue 1 2 – 1 2,637 (2,636) 5
Total segment revenues
1
144,159 46,346 39,075 41,887 10,451 (145,544) 13 6, 374
Operating expenses
Interest expense
2
8,713 – – – 785 (2,636) 6,862
Depreciation
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
594,243 27,378 18,687 21,165 124,067 (134,442) 651,098
Capital expenditure
6
20,049 7 104 26 2,639 – 22,825
Segment liabilities 379,176 16,876 10,528 13,044 37,115 (91,332) 365,407
Notes to the Financial Statements continued
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
17

3. EXPENSES
Expenses by function have been categorised as follows:
Unaudited
D e c 2017
6 Months
$000
Audited
J un e 2017
12 M o nths
$000
Unaudited
Dec 2016
6 Months
$000
Cost of sales 65,800 115,764 67,341
Selling, marketing and promotion expenses 30,338 55,485 30,003
Corporate governance expenses 459 911 417
Administration expenses 5,630 10,295 4,922
Unrealised foreign exchange losses 130 – –
Fair value movement on derivative instruments 1,448 – –

Notes to the Financial Statements continued
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
18

4. ACQUISITION AND DISPOSAL OF ASSETS
During the six months ended 31 December 2017 the Group incurred total capital expenditure of $22,265,000
(31 December 2016: $22,825,000). During the six months ended 31 December 2017 the Group disposed of property,
plant and equipment with a net book value of $1,774,000 (31 December 2016: $922,000).
5. CAPITAL COMMITMENTS
The estimated capital expenditure contracted for at 31 December 2017 but not provided for is $11,588,000
(31 December 2016: $10,730,000).
6. EVENTS SUBSEQUENT TO BALANCE SHEET DATE
On 25 January 2018, Delegat entered into an unconditional agreement to purchase land in the Wairau Valley,
Marlborough for total consideration of $7,150,000.
Notes to the Financial Statements continued
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
19

Directors
Jakov Nikola Delegat
Rosemari Suzan Delegat
Robert Lawrence Wilton
Alan Trevor Jackson
Shelley Jane Cave
Graeme Stuart Lord
Registered Office
Level 1, 10 Viaduct Harbour Avenue
Auckland 1010
PO Box 91681
Victoria Street West
Auckland 1142
Solicitors
Heimsath Alexander
Level 1, Shed 22, Prince’s Wharf
147 Quay Street
PO Box 105884
Auckland 1143
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 2017
20

Notes
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
21

B L U E
GOLD
OUT OF THE BLUE,
G O L D.
Of all the wines judged at the Sydney International
Wine Competition, few are selected for the

ultimate challenge; to be judged with food for a
chance to win the coveted Blue-Gold medal.
On the night, the expressive flavours of
plum, berry fruits and exotic spice in our
Barossa Valley Estate Shiraz 2014 proved to
be a ‘stand out’ combination with the food,
and the judges had no hesitation in awarding it a
Blue-Gold medal.
We are renowned for our single-minded dedication
to red; we only make three red wines, but in
this instance blue and gold are certainly an
exception.
The perfect dinner companion, perhaps? You
be the judge of that.
Barossa Valley Estate Shiraz 2014
Blue-Gold Medal, Sydney International Wine Competition