PGG Wrightson Half Year Report to 31 December 2017

Helping grow the country
Half Year
Report
For the six months ended
31 December 2017

HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 1
PGG WRIGHTSON LIMITED
PGW Seeds Arable Representative
Shane Butler with Eric Watson in
Mid Canterbury, December 2017.
Reporting on an
IMPRESSIVE
RESULT
PGW South Island Livestock
Manager Shane Gerken is on the
gates, drafting lambs with his
team at Airies Station near Burkes
Pass, on the morning of their on
farm sale in February 2018.
Operating EBITDA of
$
34.2m
from $26.0 million for the
previous corresponding period
Net profit after tax of
$
14.6m
from $15.0 million for the
previous corresponding period
Fully imputed
interim dividend of
1.75¢
per share

Chairman and
Chief Executive Officer’s
REPORT
Guanglin (Alan) Lai
CHAIRMAN
Ian Glasson
CHIEF EXECUTIVE OFFICER
For the six months ended 31
December 2017, PGW achieved
Operating EBITDA of $34.2
million, up $8.2 million from the
corresponding period last year.
Shareholders will receive a fully
imputed interim dividend of
1.75 cents per share payable on
5 A
pril 2018.
2
| PGG WRIGHTSON LIMITED
Operating earnings for PGG Wrightson Limited (“PGW”, “the
Group”, or “the Company”) before interest, tax, depreciation
and amortisation (Operating EBITDA) for the six months
to 31 December 2017 was $34.2 million, up $8.2 million
on the corresponding period last year. This is PGW’s best
first half Operating EBITDA result in a decade. Net profit
after tax (NPAT ) was $14.6 million, $0.4 million lower than
the same period last year due in part to movement in the
New
Zealand dollar.
We advised in October last year
that against a backdrop of higher
commodity prices, lower agricultural
production and a delayed start to
spring we expected our Operating
EBITDA to be at a similar level to
FY2017. It is pleasing to be able to
report that the business has achieved a
first half performance at an Operating
EBITDA level that is stronger than the
corresponding period last year.
Furthermore, we expect this strength
to continue and anticipate Operating
EBITDA to exceed FY2017’s result and
be in the $65 million to $70 million
range.
Previously we also expected that NPAT
for FY2018 would be approximately
30 percent lower than FY2017 due to
a reduction in gains on property sales
given that our divestment programme
is now largely complete. With this

HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 3
stronger trading performance we now
expect NPAT to be approximately 20
percent lower.
This is a very pleasing result for the first
half. We have a highly engaged team
who continue to deliver good results
through the market cycles and weather
variability that impact the agri-sector.
The lift in Operating EBITDA from the
same time last year is heartening and
puts us in a good position as we move
into the second half. This performance
was achieved with most of our
businesses trading well through the
first
half
.
AGENCY
The Agency group delivered an excellent
result with a more than two-fold increase
in Operating EBITDA.
The Livestock business benefited from
strong international demand for protein
and reduced tallies which combined
to push up livestock prices across New
Zealand. In addition, our Livestock
supply chain products continue to
perform well.
Wool has performed significantly above
the corresponding period last year
with both our brokering and export
businesses tracking well. This has been
driven by increases of bales into store
and farmers meeting market levels.
The Real Estate business had a
challenging first six months but
maintained market share and remains
well positioned to respond when market
conditions improve.
RETAIL AND WATER
The Retail and Water group performed
superbly with a 25 percent increase in
Operating EBITDA over the same period
last year which was largely built on the
operating performance in our Retail
business. All three Retail business areas
(Rural Supplies, Fruitfed Supplies and
Agritrade) contributed to the pleasing
result.
The Retail business performed extremely
well during a period when they look to
deliver more than 85 percent of their full
year Operating EBITDA. It was pleasing
to see that they finished with Operating
EBITDA higher than the same period
last year despite some challenges with
weather. Wet growing conditions in
spring were followed by dry conditions
in November and December.
The main impact on horticulture was the
advance of harvest dates. This resulted
in spray programme applications being
brought forward and as a consequence
some of the sales that were planned for
January occurred during December.
The Water business continues to be
challenged by the lack of on farm
development. Despite this, the business
is seeing a number of opportunities
come to fruition, such as the successful
tendering to supply irrigation to the
Royal Auckland and Grange Golf Club,
and Millbrook developments.
SEED AND GRAIN
Seed and Grain performed well
increasing Operating EBITDA by $2.2
million over the same period last year.
The New Zealand Seed and Grain
business had a solid result due to
favourable weather conditions in spring,
compared to the same period last year.
Recovery in the grain and forage seeds
market along with a lift in performance
in international shipments due to high
yields resulted in an increased Operating
EBITDA.
However, a reduction in spring sales
increased closing inventory levels in
both the Australian and South American
businesses. Initiatives are in place to
alleviate working capital demands
across the Seed and Grain group and we
expect that to improve as the Australian
business performance is traditionally
focused in the second six months of the
financial year.
The Seed and Grain group’s continued
investment in research and development
was highlighted in spring with the
launch of our environmentally functional
programme, NSentinel 4™, which
includes our new plantain product,
Ecotain®. We also had impressive
demand for the first full commercial year
of our raphanobrassica product.
STRATEGY UPDATE
In October 2017 it was announced that
the Board had made a joint appointment
of Credit Suisse (Australia) Ltd and First
NZ Capital Ltd as financial advisers to
assist with a strategic review of PGW’s
business, its growth opportunities,
capital and balance sheet requirements,
and potentially shareholding structure.
The review remains ongoing and it
is hoped that the Company will be
in a position to comment further
on outcomes from this work later in
the
year.
BALANCE SHEET
Net cash outflows from operating
activities were $49.8 million up from
$16.2 million on the same period last
year. Receivables increased largely as
a result of the continued success of
our Go range of livestock products and
the weather-driven seasonal delay in
planting, which pushed our seasonal
peak in working capital closer to
December 2017 than usual. However,
due to our continued focus on cash

4 | PGG WRIGHTSON LIMITED
management, we have seen good
collections in January and February 2018.
We continue to invest into the business
to improve facilities and operating
systems, and we foresee growth in our
Go products. Currently we expect year
end debt levels in June 2018 to be
approximately $30 million higher than
June 2017 due to increased working
capital across Seed and Grain, Retail and
Water, and Go Livestock receivables.
Much of the growth in debt over the
last two years can be attributed to
our working capital investment in Go
product receivables that are proving
to be popular with our customers
and profitable for the Company. If you
exclude the effect of Go products from
our net interest-bearing debt you will
see that our debt as at December 2017
is at approximately the same level as at
December 2015 (Note: Go products were
launched in November 2015).
HEALTH AND SAFETY
We have made some good progress in
improving the workplace health and
safety of our employees. However there
are still plenty of challenges to overcome
as the agricultural sector in which we
operate is one area where the injury rate
is high and many risks and hazards exist.
In recognition of our ongoing
commitment to improve the health,
safety and wellbeing of our people we
continue to invest in initiatives across
our five key strategic drivers: People and
Leadership; Critical Risk and Controls;
Learning and Communication; Systems
and Structure, and Governance and
Assurance.
Programmes of work within these key
pillars are designed to achieve net
positive results from our health and
safety efforts, creating organisational
benefits alongside our desired sense of
citizenship whereby health, safety and
wellbeing is seen as an integral part of
everything we do at PGW.
To support our efforts a revised
governance model was implemented,
we renewed our focus on critical risks
and our team of health and safety
professionals grew substantially to
support and guide our leaders and
frontline employees. To ensure we
develop a learning culture which
understands and recognises the risks in
our operations and works tirelessly to
prevent harm, we also commenced the
Zero Incident Process (ZIP) cognitive
behavioural safety leadership and
engagement programme. 600 leaders
and frontline team members will have
completed ZIP training by the end of this
financial year.
DIVIDENDS
In February 2018 the Board of Directors
declared an interim dividend of
1.75 cents per share to be paid to
shareholders registered at the record
date of 16 March 2018. The dividend
will be fully imputed and paid to
shareholders on 5 April 2018.
OUTLOOK
Dairy price expectations for the season
have softened but are still ahead of
this time last year. Milk processing
companies are expecting production to
fall for the remainder of their season. We
have seen some increase in confidence
in the dairy market but activity is still
constrained as dairy farmers remain
cautious in their decision making.
We expect continued strong lamb and
beef commodity demand and pricing.
This is buoyed in part by good feed
supply across the country, except for
Southland and parts of Otago where
“Operating EBITDA
for the half year ended
31 December 2017
was $34.2 million,
up $8.2 million on
the corresponding
period last year. This
is PGW’s best first half
Operating EBITDA
result in a decade.”
Alan Lai, Chairman

HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 5
drought was officially declared in late
January 2018. Our staff continue to
work alongside local rural support and
industry groups in all drought-affected
areas to assist customers who remain
impacted despite heavy and sustained
rainfall during February which has
returned Southland rivers and aquifers
back to normal levels for this time of
the
y
ear.
Crossbred wool prices have stabilised
at low levels and growers are starting
to meet the market with inventory
beginning to move through auctions
again. The demand for fine wool is
heartening and we are making gains in
that market with international supply
chain contracts increasing.
The second six trading months for the
Retail and Water group are always lower
revenue months which reflect the role
the business has in farm activity at that
time of the year. The excellent result
delivered by the Fruitfed horticulture
business in the first half of the financial
year is set to continue with large-scale
grape, kiwifruit, apple and avocado
producers experiencing favourable
returns and forging ahead with extensive
development. The added benefit of this
customer investment to our business
is the increase in sales in fencing,
machinery, horticulture merchandise,
water and irrigation categories.
The outlook for the Seed and Grain
group remains positive for the second
half of the financial year. Subject to
favourable autumn planting and climatic
conditions in our key markets, we expect
these businesses to deliver good second
half results. The South American business
continues to recover from the impact of
the devastating floods of 2016.
Assuming positive market conditions
continue, we believe that we are on
track to deliver a full year operating
result to surpass last year at an Operating
EBITDA level. Much of the earnings of
our South American, Australian and
Livestock businesses will not be certain
until later in the financial year, but as of
27 February 2018 (the date of the Half
Year results announcement) we expect
FY2018 Operating EBITDA to be in the
$65 million to $70 million range and
NPAT to be approximately 20 percent
lower than last year.
GOVERNANCE AND
EXECUTIVE TEAM
The PGG Wrightson Limited Board
remains stable, aside from one change
in membership due to retirement. On 16
October 2017 Wah Kwong Tsang retired
as a Director. Joo Hai Lee was appointed
to the Board on 31 October 2017.
There were two changes to the
executive team during the first six
months of FY2018. Firstly, Ian Glasson
was appointed as Chief Executive
on 1 November 2017 following the
resignation of Mark Dewdney.
Secondly, Grant Edwards (former General
Manager Finance and Insurance) was
appointed General Manager of Wool
on 1 November 2017 following the
retirement of Cedric Bayly.
The Board extends its thanks to Mark and
Cedric for their respective contributions
to PGW during their tenure.
ACKNOWLEDGEMENTS
This year’s outstanding result is an
achievement that PGW’s dedicated, hard
working and passionate people can
share with our stakeholders. The PGW
Board and executive team continue to
be impressed with the commitment
and passion for agriculture that our
staff display. There are many examples
across the Company of the enduring
relationships our people have with
our customers. We share our expertise
and are invested in our customers’
performance.
Alan Lai
Chairman
Ian Glasson
Chief Executive Officer

6 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 7
The PGG Wrightson Livestock
business has continued to
strengthen its performance
over the last three years as
lower stock numbers and
sustained international
demand for New Zealand’s
high-quality protein have
combined to push up
livestock
prices.
Livestock is principally an agency
business, with revenue predominantly
reflecting commissions earned on
the buying and selling of livestock.
Consequently the key drivers of business
performance are the volume and value of
livestock transacted.
Underpinning this strong market activity
of recent years is the development
and implementation of a supply chain
strategy that has had a positive impact
on this business. This includes the
impressive growth of the Go range of
livestock products, since they were
launched in November 2015.
The Go products are a supply chain
product for cattle and sheep owned by
PGG Wrightson (PGW ). The Go products
have proven popular with farmers and
have grown to an asset balance of $28.7
million as at 31 December 2017.
PGW National Livestock Supply Chain
Manager Jamie Molloy who developed
and manages the Go products scheme
explains, “The market was looking for a
grazing product to assist them with their
livestock trading. The scheme has been
designed to be easy to put in place with
Go products:
providing flexibility
our customers signing up to the scheme
with their PGW Livestock Agent. Under
the scheme, PGW own the livestock and
when it is sold the change in the value of
the livestock is the farmer’s, less fees.
“Farmers need to be agile as market
prices and climatic conditions can
change quickly. The timing of Go
products are flexible and our customers
can use them to suit their own farming
operation, for example, farmers typically
hold the sheep (Go-Lamb™) for up to
four months and cattle (Go-Beef™) for up
to 12 months.
“During the 2017 financial year 187,964
sheep and 33,983 cattle entered the
scheme. The stock numbers entering the
scheme for the first six months of FY2018
have grown from those levels, which is
indicative of the strong appeal of the Go
products to our customers,” said Jamie.
One of the many PGW customers who
signed up for the scheme were Calum
and Siobhan Watson of Papanui Station
in Makara, west of Wellington. They have
signed up for five separate contracts
for a total of 400 steers and 5,000 lambs
through the scheme since March 2017.
Calum explains, “Siobhan and I had been
managing Papanui Station for eight years
when we were given the opportunity to
farm it in our own right in early 2017. This
is sheep and beef country so our major
asset is our capital stock. We’ve made
good margin through trading stock
utilising Go products over the last year
or so. This country can dry off quickly
here and we usually try and get the
store cattle and lambs off the property
by December. We got a bit less rain than
usual over this summer so we only have
the bottom end of the lambs left on the
property and we will hold them through
to January to get the best margin. Every
year is a bit different, so having flexibility
with Go products really helps us make
the most of the conditions at the time.
“Our Livestock Agent Alex Stewart
suggested we take a look at Go products
because it gave us the flexibility to
trade stock in a strong market while still
maintaining the ability to hold or sell
stock as needed given current conditions
on farm,” said Calum.
PGW Livestock Agent Alex Stewart
has been working with the Watson’s
for about 18 months and he saw Go
products as a good solution to get them
involved in trading stock with the end
goal of building up their capital from
the gains made using Go products. Alex
said, “To date they have signed up for
five separate contracts, it works well for
them and it is suited to their farming
operation.”
Jamie concludes, “The international
outlook is good for both cattle and
sheep markets.
“While it is well documented that
our national sheep flock has been
decreasing for some time, more recently
that decrease has slowed, I think there
are enough good long-term signals out
there for that trend to start to reverse.
We see that as a positive sign for future
growth for our Go product range. We are
currently developing other Go products,
including dairy, to further meet the
needs of the market. We believe that
Go products will continue to go from
strength to strength.”
Agency
Calum Watson of Papanui Station with PGW
National Livestock Supply Chain Manager
Jamie Molloy and Livestock Agent Alex Stewart.
They are inspecting some of the Station’s lambs
and steers in January 2018.

8 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 9
AIS South Island Manager Paul Mooney and RAGGC
Director of Agronomy Mark Hooker inspect the
development of the Grange Course number two hole
in January 2018.
Irrigation innovation:
keeping the fairways green
With the slowing of irrigation development in the rural sector in
New Zealand over the last two to three years, the PGG Wrightson
Water team turned its focus on growing other areas of their
business including irrigation systems for golf courses.
Advanced Irrigation Systems (AIS) – a
trading division of PGG Wrightson
Limited – provides water system design,
infrastructure implementation and
service support to a range of customers
including golf clubs around New
Zealand. As a result of the innovative
technology and highly valued work the
team have been delivering, their bid
for the redevelopment project at the
prestigious Royal Auckland and Grange
Golf Club (RAGGC) was successful.
The specialised golf irrigation system
that the team is installing at RAGGC is
the Rain Bird® Integrated Control™ (IC)
system. AIS has already installed the
system at two golf courses, with four
more to come online in the near future.
A key aspect of the system is the
integrated control software package
which allows our customers to turn
individual sprinklers on and off via a
central control computer or internet
enabled devices such as smart phones
or tablets. The highly sophisticated
IC™ system has advanced diagnostic
capabilities to troubleshoot field issues
with pinpoint accuracy.
The RAGGC project’s earthworks
commenced in September 2017 and the
project is expected to be completed by
October 2021. Leading the AIS project
team is South Island Manager and
irrigation golf specialist Paul Mooney.
Paul said, “It is a privilege to be working
on this major development at one of the
most prestigious golf clubs in Australasia.
Our team was delighted when the
project bid was accepted. Now the hard
work begins.
“AIS are New Zealand’s sole authorised
Rain Bird® distributor for golf irrigation
products, which provide automatically
controlled irrigation systems for heavy
turf applications such as golf and race
courses,” said Paul.
KEY FACTS
27 holes will be developed (13 on
the Grange and 14 on the Royal
Auckland side).
AIS will lay approximately
44 kilometres of irrigation pipes.
AIS will install 1750 sprinkler heads.
Fairways will be sand capped with
38,000 cubic metres of sand.
RAGGC will plant approximately
1500 native plants over the next
four years in addition to exotic
accent trees in strategic areas.
Royal Auckland and
Grange Golf Club
The Auckland Golf Club was
founded in 1894 and the Grange
Golf Club was founded in 1924.
In the 123 years since a number
of golf clubs have formed in the
Auckland area, relocating as the
city grows.
In 2015 it was decided to merge
the Royal Auckland and Grange
Golf Clubs. This new entity
provided an opportunity for
redevelopment with the new
layout spread equally across
the Grange and Middlemore
properties. Two bridges will link
the properties across the estuary,
one for golfers arriving to the
clubhouse and another to ferry
them across the estuary as they
play the course. The club will
build a new clubhouse as well as
a 300 metre driving range and
short game practice facilities.
The project will be carried out in
two phases, the first being the
construction of the 13 holes on
the Grange property, the bridges
and clubhouse. These elements
will be completed in mid to late
2019. Phase two will see the
balance of the holes constructed
on the Middlemore property,
along with the driving range, all
to be completed in 2021.
PGW Turf
PGW Turf are also working closely
with the RAGGC by supplying
seed, fertiliser and plant health
products for the construction
and maintenance of the course.
The relationship between PGW
Turf and Mark Hooker goes
back a number of years to when
PGW Turf supplied Mark with
Colosseum perennial ryegrass
for the over-seeding of the
Royal Golf Club in the Kingdom
of Bahrain (the only grass golf
course in Bahrain).
Retail and Water
Paul and his team work closely with
RAGGC Director of Agronomy Mark
Hooker and his team, as well as the
Nicklaus Design Associate onsite,
Paul
Garvie.
Mark said, “Our objective is to develop a
golf course that is comparable with the
best Australasian courses and to produce
high quality playing surfaces for our
members all year round. We are pleased
to be working with AIS to be able to
deliver on this.
“It is therefore important to install an
excellent irrigation system. Their system
met our requirements. The water supply
system is highly customised and will
provide smart technology to address
the unique soil, sand and grass (turf )
combinations on each hole,” said Mark.
In addition the RAGGC will install an
integrated weather station and soil
moisture sensors that will help with
irrigation scheduling to avoid over or
under watering on the golf course.
Another integrated feature that will
assist
with the efficient use of water is
the Rain Bird® Smart Pump technology.
The pump technology will help RAGGC
maximise pump use and improve water
window efficiency, which in turn will
decrease energy consumption.
The $60 million plus project involves
three separate contractors managing
earthworks, drainage and irrigation.
Once these aspects of the project
are completed, then the naked soil is
handed back to RAGGC to plant and
grow in the course.
Mark sums up, “While the project
involves three contractors, they work
closely together as a team – sharing
information and agreeing on goals
which I believe will result in a better
outcome for us and our members. An
excellent irrigation system is key to a
top performing golf course. If you get
that part right and take the time to plan
and install carefully, this goes a long way
and enables our agronomy team time
to focus on preparing top quality turf
surfaces.”

10 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 11
One of the high-performing teams within
the PGG Wrightson Seeds’ New Zealand
business, which operates largely away from
the public eye, is the Arable business unit.
This business unit which works alongside
specialist arable farmers is based in
Canterbury, New Zealand’s most intense
arable production region. The team of 18
arable specialists is located throughout
the South Island in key arable areas.
The team, which was formed in 2006,
is led by PGG Wrightson Seeds Arable
Business Unit Manager Graeme Jones.
Graeme said, “The formation of the team
came about as our arable customers
had a number of PGG Wrightson (PGW )
staff they were dealing with across
the Company which resulted in some
confusion and duplication of effort. We
needed to change our thinking to build
the best agronomic platform to service
and support our arable customers and
the PGW Seeds business. We concluded
that the best way to service and interact
with our arable customers was to have
a primary relationship – a representative
who specialised in seed production who
also had a high level of agronomy and
technical expertise.
“The two things that drive our business
unit are seeds and agronomy. As a
result, our team is required to perform
at a strong level of service, market
knowledge and technical knowledge.
“New Zealand has some of the best
arable seed production in the world.
We have good soils, irrigation (reliable
water supply) and optimal climatic
(reasonably consistent) conditions. As a
result, we are able to provide quality and
reliable seed and grain production. We
have developed a hands on approach
between ourselves and our arable
customers, but to compete in the global
market we cannot rely on that alone.
There is also a technical requirement to
produce seed at the highest quality and
yield per hectare.
“A significant competitive advantage
for us is the support of the highly
experienced PGW Seeds research and
development (R&D) team. Developing a
new cultivar can take more than 10 years
of intensive work and the R&D team
share their expertise with us, which we in
turn share with our customers. The R&D
team run many agronomic and cultivar
field trials during that development
period on our customers’ farms so they
are invested in future cultivars as much
as we are.
“Our customers require a high level of
technical and market knowledge so it
is critical to provide them with support
that will add value to their farming
operation and work alongside them in
an industry where innovation is fast-
moving. So we need to be ahead of the
game,“ said Graeme.
One member of the Arable business
unit who has been working alongside
arable farmers for 20 years is PGW Seeds
Arable Representative Shane Butler.
Shane works with arable farmers in Mid
Canterbury and one of his customers is
Eric and Maxine Watson.
Shane said, “Eric and Maxine are
passionate arable farmers who are
willing to learn about and adopt new
technologies regarding the latest arable
research and development which adds
value to their arable farming business.
“Our wider PGW Seeds team is equally
as passionate about arable farming.
Remaining competitive in global
markets, and maximising seed yield
and quality are our key goals. We can
achieve this with customers, such as Eric
and Maxine Watson, through sharing
the R&D and technology innovation
by bringing it onto farm in a practical
application both through field trials and
seed production,” said Shane.
The Watsons run a 490 hectare property
in Wakanui. The farm is a fully irrigated
property growing a range of arable crops
for PGW Seeds including; ryegrass, tall
fescue, timothy, red fescue, plantain,
chicory, linseed, wheat, triticale and
barley.
Eric said, “Our family has been involved
with PGW (and its predecessors) for three
generations. We have been loyal to them
and in turn they have looked after us. We
view our relationship with Shane and the
team at PGW as a partnership. We fire
ideas around and between us we come
up with the best way forward. We rely
heavily on the technical knowledge of
Shane and the wider PGW Seeds team.
“As a specialised arable operation,
maximum yield is the key outcome for
us and we continue to achieve that
with Shane. We are involved in field
trials and the more we understand the
development of cultivars the better
outcome we can gain through yield
when we grow them as production
or multiplication crops. Shane is an
essential part of our business and he
helps us get the best out of our crops,”
said Eric.
PGW Seeds Arable Representative Shane Butler and Arable
Business Unit Manager Graeme Jones with Eric Watson.
They are inspecting a 24 hectare paddock of Ecotain® at the
Watson’s Mid Canterbury farm in December 2017.
Team approach:
resulting in high yields
Seed and Grain

The financial statements contained
on pages 14 – 31 have been
approved by the Board of Directors
on 26 F
ebruary 2018.
Alan Lai
Chairman
Bruce Irvine
Director and Audit
Committee Chairman
for the six months ended 31 December 2017
Key
Financial
Disclosures
12 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 13
15,000 lambs and ewes on the move
in the Airies Station sheep yards, near
Burkes Pass in February 2018.

14 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 15
KEY FINANCIAL DISCLOSURES
UNAUDITED AUDITED UNAUDITED
DE
C 2017
JU
N 2017
DE
C 2016
NOTE $000 $000 $000
Continuing operations
Operating revenue 628,177 1,132,963 607,771
Cost of sales
(457,241) (804,317) (450,308)
Gross profit 170,936 328,646 157,463
Other income 4 388 30
Employ
ee benefits expense (82,257) (160,851) (79,969)
Research and development (2,811) (4,542) (2,650)
Other operating expenses (52,012) (99,268) (49,215)
Equit
y accounted earnings of investees 312 126 323
(136,764) (264,147) (131,481)
Oper
ating EBITDA


34,172 64,499 25,982
Non-operating items
1,293 9,521 529
Fair value adjustments
1

(106)

(420)

(283)
Depr
eciation and amortisation expense

(6,115)

(10,733)

(5,188)
EBIT
29,244 62,867 21,040
Net inter
est and finance costs

2

(7,997)

(6,158)

(1,511)
Pr
ofit from continuing operations before income taxes


21,247

56,709

19,529
Income tax expense
(6,604) (10,428) (4,562)
Pr
ofit from continuing operations
14,643 46,281 14,967
Disc
ontinued operations
Profit / (loss) from discontinued operations (net of income taxes) (3) 30 12
Net profit after tax
14,640 46,311 14,979
P
rofit attributable to:
Shareholders of the Company
14,488 45,607 14,988
Non-contr
olling interest
152 704 (9)
Net profit af
ter tax

14,640

46,311

14,979
Earnings per share
Basic ear
nings per share (New Zealand Dollars) 3 0.019 0.061 0.020
Con
tinuing operations
Basic earnings per share (New Zealand Dollars)
3 0.019 0.061 0.020
The ac
companying notes form an integral part of these financial statements.
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF PROFIT OR LOSS
For the six months ended 31 December 2017

14 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 15
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME
For the six months ended 31 December 2017
UNAUDITED AUDITED UNAUDITED
DE
C 2017
JU
N 2017
DE
C 2016
$000 $000 $000
Net profit after tax 14,640 46,311 14,979
Other comprehensive income/(loss) for the period
Items that will never be reclassified to profit or loss
Changes in fair value of equity instruments
– 240 504
Remeasur
ements of defined benefit liability
1,992 3,121 4,745
Def
erred tax on remeasurements and change of defined benefit liability (550) (2,389) (2,956)
1,442 972 2,293
It
ems that are or may be reclassified to profit or loss
Foreign currency translation differences for foreign operations 3,885 (1,550) 942
Eff
ective portion of changes in fair value of cash flow hedges


– (2,039) (2,039)
Income/def
erred tax on changes in fair value of cash flow hedges – 571 571
3,885 (3,018) (526)
Other c
omprehensive income/(loss) for the period, net of income tax
5,327 (2,046) 1,767
Total c
omprehensive income for the period


19,967 44,265 16,746
Total c
omprehensive income/(loss) attributable to:
Shareholders of the Company
19,818 43,579 16,773
Non-controlling interest 149 686 (27)
Total c
omprehensive income for the period


19,967 44,265 16,746
The ac
companying notes form an integral part of these financial statements.

16 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 1716 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 17
KEY FINANCIAL DISCLOSURES
(a) Operating Segments
During 2017 the Group reorganised its operating structure to have three primary operating segments: Agency, Retail and Water and Seed and
Grain which are the Group’s strategic divisions. Agency and Retail and Water operate within New Zealand. Seed and Grain primarily operates
within New Zealand with additional operations in Australia and South America. Comparative segmental information has been restated in respect
of the change in operating structure.
The three operating segments offer different products and services, and are managed separately because they require different skills, technology
and marketing strategies. There is also a Group General Manager for each segment. Within each segment, further business unit analysis may be
provided to management where there are significant differences in the nature of activities. The Chief Executive Officer or Chairman of the Board
reviews internal management reports on each strategic business unit on at least a monthly basis.
– Agency. Includes rural Livestock trading activities, Export Livestock, Wool, Insurance, Real Estate and Finance Commission.
–
Retail and W
ater. Includes the Rural Supplies and Fruitfed retail operations, PGG Wrightson Water, AgNZ (Consulting), Agritrade and ancillary
sales support, supply chain and marketing functions.
–
Seed and Grain. Includes Australasia Seed and Grain (New Zealand and Australian manufacturing and distribution of forage seed and turf,
sale of cereal seed and grain trading, international trading and seed production), South America (various related activities in the developing
seeds markets including the sale of pasture and crop seed and farm inputs, together with operations in the areas of livestock, real estate and
irrigation), and other Seed and Grain (research and development and corporate seeds).
–

Other
. Other non-segmented amounts relate to certain Group Corporate activities including Finance, Treasury, HR and other support services
including corporate property services and include adjustments for discontinued operations (PGW Rural Capital Limited) and consolidation/
elimination adjustments.
(b) Operating Segment Information
AGENCY RETAIL AND WATER SEED AND GRAIN OTHER TOTAL
UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016 DEC 2017 JUN 2017 DEC 2016 DEC 2017 JUN 2017 DEC 2016 DEC 2017 JUN 2017 DEC 2016 DEC 2017 JUN 2017 DEC 2016
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Total segment revenue 84,304 197,098 91,415 381,732 562,162 348,569 208,790 428,711 203,521 305 1,040 685 675,131 1,189,012 644,190
Intersegment revenue – – – – – – (46,954) (56,049) (36,419) – – – (46,954) (56,049) (36,419)
Total external operating revenues 84,304 197,098 91,415 381,732 562,162 348,569 161,836 372,663 167,102 305 1,040 685 628,177 1,132,963 607,771
Operating EBITDA
4,633 17,996 2,012 23,621 18,295 18,922 10,813 37,045 8,613 (4,895) (8,836) (3,565) 34,172 64,499 25,982
Non-operating items 350 3,275 745 600 (12) 67 253 7,604 (118) 90 (1,347) (165) 1,293 9,521 529
Fair value adjustments (18) 26 17 – – – (88) (324) (300) – (121) – (106) (420) (283)
Depreciation and amortisation expense (513) (1,130) (561) (1,445) (1,737) (863) (2,912) (5,517) (2,658) (1,245) (2,349) (1,106) (6,115) (10,733) (5,188)
EBIT 4,452 20,167 2,213 22,776 16,546 18,126 8,066 38,807 5,538 (6,050) (12,654) (4,837) 29,244 62,866 21,040
Net interest and finance costs (1,370) 472 1,134 291 272 592 (4,131) (4,127) (1,437) (2,787) (2,774) (1,800) (7,997) (6,158) (1,511)
Pr
ofit / (loss) from continuing operations before income taxes 3,082 20,639 3,347 23,067 16,819 18,719 3,935 34,680 4,101 (8,837) (15,428) (6,637) 21,247 56,709 19,529
Income tax (expense) / income
(584) (4,171) (1,925) (6,354) (5,253) (7,411) (1,231) (7,513) (2,831) 1,565 6,509 7,605 (6,604) (10,428) (4,562)
Pr
ofit/(loss) from continuing operations 2,498 16,468 1,422 16,712 11,566 11,307 2,704 27,166 1,270 (7,272) (8,920) 969 14,643 46,281 14,967
Discontinued operations
– – – – – – – – – (3) 30 12 (3) 30 12
Net profit af
ter tax 2,498 16,468 1,422 16,712 11,566 11,307 2,704 27,166 1,270 (7,275) (8,890) 981 14,640 46,311 14,979
Segment assets 142,539 145,410 114,303 275,372 137,081 241,042 361,463 367,753 324,870 39,028 27,704 38,588 818,402 677,949 718,803
In
vestment in equity accounted investees
– – – – – – 24,234 20,892 21,107 62 81 78 24,296 20,973 21,185
A
ssets held for sale
– 37 88 218 500 264 – – 5,497 2,398 2,690 2,311 2,616 3,227 8,160
T
otal segment assets
142,539 145,447 114,391 275,590 137,581 241,306 385,697 388,645 351,475 41,488 30,475 40,977 845,314 702,148 748,148
Segment liabilities
(39,283) (71,296) (43,903) (171,920) (72,117) (150,193) (171,754) (187,209) (161,806) (168,223) (81,816) (116,361) (551,180) (412,437) (472,263)
The ac
companying notes form an integral part of these financial statements.
PGG WRIGHTSON LIMITED
INTERIM SEGMENT REPORT
For the six months ended / as at 31 December 2017
Assets allocated to each business unit combine to form total assets for the Agency, Retail and Water and Seed and Grain business segments.
Certain other assets are held at a Corporate level including those for the Corporate functions noted above.
The profit/(loss) for each business unit combines to form total profit/(loss) of the Agency, Retail and Water and Seed and Grain segments.
Certain other revenues and expenses are held at the Corporate level for the Corporate functions noted above.
Other cost allocation
The Group has adopted an allocation methodology which allocates certain corporate costs where they can be directly attributed to the
operating segment or attributed based on the use of the following methods:
–
IT hardwar
e, support, licence and other costs attributed on a per user basis.
–
Pr
operty costs allocated, where not directly attributable, on a property space utilisation basis.
– Business operations costs (Accounts Payable, Accounts Receivable, Credit Services, Call Centre) allocated based on FTE usage by each
operating segment, transactional volumes or for Credit Services allocated based on the operating segment to which overdue accounts
relate to.
Other costs including non-operating items, fair value adjustments, net interest and finance costs, income tax expense as well as the reporting
of discontinued operations are not fully allocated by the Group. Accordingly, these items have not been allocated across the operating
segments. The Group Finance, Risk and Assurance, Treasury, HR, Credit and the Executive Team functions continue to be reported outside of
the operating segments.

18 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 19
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CASH FLOWS
For the six months ended 31 December 2017
UNAUDITED AUDITED UNAUDITED
DE
C 2017
JU
N 2017
DE
C 2016
NOTE $000 $000 $000
Cash flows from operating activities
Cash was provided from
Receipts from customers
543,007 1,201,273 566,771
Dividends received 2 10 1
Int
erest received
2,403 3,318 1,282
545,412 1,204,601 568,054
Cash was applied t
o
Payments to suppliers and employees (582,712) (1,159,853) (567,335)
Lump sum contributions to defined benefit plans (ESCT inclusive) (1,340) (7,551) (6,030)
Int
erest paid
(4,049) (6,321) (3,417)
Income tax paid
(7,090) (10,408) (7,465)
(595,191) (1,184,133) (584,247)
Net cash inflo
w / (outflow) from operating activities
(49,779) 20,468 (16,193)
Cash flo
ws from investing activities
Cash was provided from
Proceeds from sale of property, plant and equipment and assets held for sale


2,426 22,352 8,673
Net decrease in finance receivables – – 22
Net proceeds fr
om sale of investments
111 4,424 4,424
2,537 26,776 13,119
Cash was applied to
Purchase of property, plant and equipment
(5,268) (12,803) (6,950)
Pur
chase of intangibles
(3,940) (4,307) (933)
Net cash paid for purchase of investments (1,056) (2,773) (2,975)
(10,264) (19,883) (10,858)
Net cash flow from investing activities (7,727) 6,893 2,261
Cash flo
ws from financing activities
Cash was provided from
Increase in external borrowings and bank overdraft
84,298 3,715 32,144
Repa
yment of loans from related parties
3,596 – –
87,894 3,715 32,144
Cash was applied to
Dividends paid to shareholders (15,234) (28,588) (15,252)
Dividends paid to minority interests
(310) (646) (289)
Repa
yment of loans to related parties
– – (163)
(15,544) (29,234) (15,704)
Net cash flo
w from financing activities
72,350 (25,519) 16,440
Net increase in cash held
14,844 1,842 2,508
Opening cash 9,403 7,561 7,561
Cash and c
ash equivalents
4 24,247 9,403 10,069
The ac
companying notes form an integral part of these financial statements.

18 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 19
PGG WRIGHTSON LIMITED
RECONCILIATION OF PROFIT AFTER TAX
WITH NET CASH FLOW FROM OPERATING ACTIVITIES
For the six months ended 31 December 2017
UNAUDITED AUDITED UNAUDITED
DE
C 2017
JU
N 2017
DE
C 2016
$000 $000 $000
Profit after taxation 14,640 46,311 14,979
Add/(deduct) non-cash/non operating items
Depreciation, amortisation and impairment
6,115 10,733 5,188
Fair value adjustments 106 420 283
Net (profit)/loss on sale of assets/in
vestments
(1,327) (9,630) (1,636)
Bad debts writt
en off (net) 561 1,244 494
Change in defer
red taxation
(3,834) (811) (8,453)
Earnings of equit
y accounted investees 312 (126) (323)
Discontinued operations 3 (30) (12)
Eff
ect of foreign exchange movements
(98) (197) (307)
Earn-
out provision reassessment (328) (2,373) –
Pension contributions (operating cash) not expensed through profit and loss


(1,340) (7,551) (6,030)
Other non-
cash/non-operating items
445 1,988 4,189
15,255 39,978 8,372
Add/(
deduct) movement in working capital items
Movement in working capital due to sale/purchase of businesses
(2,683) (3,378) (3,433)
Change in inventories and biological assets
10,634 (11,208) 29,739
Change in accounts receivable and pr
epayments
(132,215) (12,364) (83,702)
Change in trade credit
ors, provisions and accruals
53,479 5,856 27,337
Change in income tax payable/receivable 4,357 2,156 8,040
Change in other current assets/liabilities 1,394 (572) (2,546)
(65,034) (19,510) (24,565)
Net cash flow from operating activities


(49,779) 20,468 (16,193)
The ac
companying notes form an integral part of these financial statements.

20 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 21
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF FINANCIAL POSITION
As at 31 December 2017
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
NOTE $000 $000 $000
ASSETS
Current
Cash and cash equivalents 4 24,247 9,403 10,069
Short-term derivative assets
1,501 3,528 2,595
Trade and other r
eceivables 365,924 230,022 322,498
Go livestock receivables
28,683 32,371 12,816
Assets classified as held f
or sale 2,616 3,227 8,160
Biological assets
1,897 1,553 927
In
ventories
242,677 253,600 214,251
Other in
vestments
30 3,441 3,822
Total curr
ent assets
667,575 537,145 575,138
Non-curr
ent
Long-term derivative assets
122 427 2,412
Biological assets
78 58 61
Deferred tax asset
18,979 15,145 22,787
In
vestments in equity accounted investees 24,296 20,973 21,185
Other investments

5

2,140

1,906

1,925
Intang
ible assets 11,162 9,129 6,655
Property, plant and equipment

7

120,962

117,365

117,985
Total non-
current assets 177,739 165,003 173,010
Total assets


845,314 702,148 748,148
LIABILITIES
Curr
ent
Debt due within one year
4 91,215 26,719 70,034
Short
-term derivative liabilities 2,724 991 748
Accounts payable and accruals
301,837 248,290 269,426
Income tax pa
yable 8,115 4,115 10,555
Defined benefit liability

9

1,046

942

1,117
Total cur
rent liabilities 404,937 281,057 351,880
Non-current
Long-term debt 4 130,634 110,925 96,283
Long-term derivative liabilities
824 661 762
Other long-t
erm liabilities
3,107 4,909 9,138
Defined benefit liability

9

11,678

14,885

14,200
Total non-
current liabilities
146,243 131,380 120,383
Total liabilities


551,180

412,437

472,263
EQUITY
Shar
e capital
606,324 606,324 606,324
Reser
ves

4,980

(2,956)

5,552
Retained ear
nings

(319,473)

(316,121)

(338,099)
Total equit
y attributable to shareholders of the Company 291,831 287,247 273,777
Non-controlling interest

2,303

2,464

2,108
Total equit
y
294,134 289,711 275,885
Total liabilities and equit
y


845,314 702,148 748,148
The accompanying notes form an integral part of these financial statements.

20 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 21
Fruitfed TFR Lara Dunningham inspects
fruit trees with Brian Fulford of Omahuri
Orchard, near Hastings, October 2017.
Additional Financial Disclosures
including Notes to the Financial Statements for the
six months ended 31 December 2017

22 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 23
ADDITIONAL FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the six months ended 31 December 2017
1 FAIR VALUE ADJUSTMENTS
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
$000 $000 $000
Assets held for sale – (121) –
Biological assets (23) 28 10
Investments (83) (327) (293)
(106) (420) (283)
2 NET INTEREST AND FINANCE COSTS
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
$000 $000 $000
Finance income contains the following items:
Other interest income
183 211 80
Financ
e income 183 211 80
Interest funding contains the following items:
Interest on loans and overdrafts (3,033) (5,747) (2,722)
Net interest on interest rate derivatives
(338) (367) (173)
Fair value change on interest rate derivatives (75) 392 585
Effective interest on expected earnout payments (420) (27) (558)
Effective interest on expected defined benefit pension ESCT payments (208) (122) (229)
Other interest expense (634) (108) (506)
Bank facility fees
(373) (772) (417)
Int
erest funding expense
(5,081) (6,751) (4,020)
For
eign exchange contains the following items:
Net gain/(loss) on foreign denominated items 1,056 (924) 120
Fair value change on f
oreign exchange derivatives (4,155) 1,306 2,309
For
eign exchange income/(expense)
(3,099) 382 2,429
Net int
erest and finance costs (7,997) (6,158) (1,511)
3 EARNINGS PER SHARE AND NET TANGIBLE ASSETS
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
000 000 000
Number of shares
Weighted average number of ordinary shares 754,849 754,849 754,849
Number of ordinar
y shares
754,849 754,849 754,849

22 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 23
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the six months ended 31 December 2017
3 EARNINGS PER SHARE AND NET TANGIBLE ASSETS (CONTINUED)
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
$000 $000 $000
Net Tangible Assets
Total assets 845,314 702,148 748,148
Total liabilities
(551,180) (412,437) (472,263)
less intangible assets (11,162) (9,129) (6,655)
less defer
red tax (18,979) (15,145) (22,787)
263,993 265,437 246,443
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
$ $ $
Net tangible assets per share 0.350 0.352 0.326
Earnings per share 0.019 0.061 0.020
4 CASH AND FINANCING FACILITIES
UNAUDITED AUDITED UNAUDITED
DE
C 2017
JU
N 2017
DE
C 2016
$000 $000 $000
Cash and cash equivalents 24,247 9,403 10,069
Current financing facilities (91,215) (26,719) (70,034)
Term financing facilities (130,634) (110,925) (96,283)
Net interest bearing debt (197,602) (128,241) (156,248)
Go range of livestock product receivables
28,683 32,371 12,838
Net int
erest-bearing debt less Go livestock receivables


(168,919) (95,870) (143,410)
Austr
alia and New Zealand facilities
The Company amended and restated its syndicated facility agreement on 15 December 2017. The facility agreement provides bank facilities
of $210.00 million. The agreement contains various financial covenants and restrictions that are standard for facilities of this nature, including
maximum permissible ratios for debt leverage and operating leverage. The Company has granted a general security deed and mortgage over all
its wholly-owned New Zealand and Australian assets to a security trust. These assets include the shares held in South American subsidiaries and
equity accounted investees. ANZ Bank New Zealand Limited acts as security trustee for the banking syndicate (ANZ Bank New Zealand Limited,
Bank of China (New Zealand) Limited, Bank of New Zealand, Bank of Tokyo-Mitsubishi UFJ, Ltd and Westpac New Zealand Limited).
The Company’s bank syndicate facilities include:
–
Term debt facilities of $150.00 million maturing on 31 July 2020.
–

A wor
king capital facility of up to $60.00 million maturing on 31 July 2020.
The syndicated facility agreement also allows the Group, subject to certain conditions, to enter into additional facilities outside of the Company
syndicated facility. The additional facilities are guaranteed by the security trust. These facilities amounted to $22.59 million as at 31 December
2017 providing:


– Ov
erdraft facilities of $9.60 million.
–
Guarantee and trade finance facilities of $10.23 million.
–
Finance lease facilities of $2.76 million.
T
he syndicated facilities fund the general corporate activities of the Group, the seasonal fluctuations in working capital, and the Go range of
livestock product receivables.

24 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 25
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017
ADDITIONAL FINANCIAL DISCLOSURES
4 CASH AND FINANCING FACILITIES (CONTINUED)
South American facilities
Two of the Group’s wholly-owned Uruguayan subsidiaries (Wrightson Pas S.A. and Agrosan S.A.) are jointly and severally financed by a club
structure. The club facilities contain various financial covenants and restrictions that are standard for facilities of this nature. The club facilities are
denominated in USD, secured by a mortgage over the logistics centre in Uruguay and provide:
– An amortising log
istics centre facility of $12.23 million (USD 8.68 million) maturing on 17 September 2022.
–
A committed facilit
y of $16.90 million (USD 12.00 million) maturing on 17 September 2018.
– Finance lease facilities of $0.30 million.
Separate to the club facility, the Group’s South American operations have various unsecured financing facilities that amounted to $17.24 million
(USD 12.24 million) as at 31 December 2017.
5 OTHER INVESTMENTS
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
NO
TE
$000 $000 $000
Current investments
BioPacificVentures
10 30 30 230
Advances t
o equity accounted investees
– 3,411 3,592
30 3,441 3,822
Non-curr
ent investments
Sundry other investments including saleyards
2,140 1,906 1,925
Advances t
o equity accounted investees
– – –
2,140 1,906 1,925
Adv
ances to equity accounted investees
This advance was a loan to the South American investee entity Fertimas S. A.. During the period the advance was repaid and replaced with
external bank funding. The Group supports the bank funding by way of guarantee. See Note 11.
Sundry other investments including saleyards
Saleyard investments, which do not have a market price in an active market and whose fair value can not be reliably determined, are carried at
cost.
6 EQUITY ACCOUNTED INVESTEE
During the period the Group made an additional investment in the jointly controlled entity Agimol Corporation S.A. (AgroCentro Uruguay). The
additional investment of $3.07 million was matched by the other joint venture partner. Consideration for the additional investment was the
capitalisation of amounts payable by AgroCentro to the Group.

24 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 25
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017
7 PROPERTY, PLANT AND EQUIPMENT
Acquisitions and disposals
During the period to 31 December 2017, the Group acquired assets with a cost of $4.64 million (30 June 2017: $12.86 million, 31 December 2016:
$4.26 million), together with assets acquired through business combinations of $0.66 million (30 June 2017: nil, 31 December 2016: nil).
Assets with a net book value of $0.02 million were disposed during the period to 31 December 2017 (30 June 2017: $10.80 million, 31 December
2016: $10.08 million), resulting in a gain on disposal of $1.48 million (30 June 2017 Gain: $8.74 million, 31 December 2016 Gain: $1.10 million).
8 SEASONALITY OF OPERATIONS
The Group is subject to significant seasonal fluctuations. The Retail business is weighted towards the first half of the financial year as demand
for New Zealand farming inputs are generally weighted towards the Spring season. Livestock and the Australian and South American Seed and
Grain activities are significantly weighted to the second half of the financial year. Seed and Grain revenues reflect the fact the Group operates in
geographical zones that suit Autumn harvesting and sowing. New Zealand generally has spring calving and lambing and so Livestock trading is
weighted towards the second half of the financial year in order for farmers to maximize their incomes. Other business units have similar but less
material cycles. The Group recognises that this seasonality is the nature of the industry and plans and manages its business accordingly.
9 DEFINED BENEFIT ASSET / LIABILITY
The Group made lump sum cash contributions of $1.34 million (gross including employer superannuation contribution tax) to the PGG Wrightson
Employee Benefits Plan during the period (30 June 2017: $7.55 million, 31 December 2016: $6.03 million).
10 COMMITMENTS
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
NO
TE
$000 $000 $000
There are commitments with respect to:
Capital expenditure not provided for 3,281 1,432 2,365
Investment in BioPacificVentures 5 51 51 51
Contr
ibutions to Primary Growth Partnership 572 867 1,167
3,904 2,350 3,583
Primary Growth Partnership–seed and nutritional technology development
The Group announced on 18 February 2013 that it had completed the contracting process for the Primary Growth Partnership (PGP) programme
with the Ministry of Primary Industries. The PGP programme is a Seed and Nutritional Technology Development Programme that aims to deliver
innovative forages for New Zealand farms. As a result of entering into the partnership the Group is committed to contributions to the partnership
of $3.61 million over the six year life of the programme which ends on 31 December 2018. As at 31 December 2017 total contributions of $3.04
million (30 June 2017: $2.74 million, 31 December 2016: $2.44 million) have been made to the programme.
Forward purchase commitments
The Group as part of its ordinary course of business enters into forward purchase agreements with seed and wool growers. These commitments
extend for periods of up to 3 years. These commitments are at varying stages of execution, therefore uncertainty exists with respect to yield,
quality and market price. The Group is unable to sufficiently quantify the value of these commitments.

26 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 27
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017
ADDITIONAL FINANCIAL DISCLOSURES
11 CONTINGENT LIABILITIES
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
$000 $000 $000
There are commitments with respect to:
Guarantees 3,487 – –
PGG W
rightson Loyalty Reward Programme
100 140 120
3,587 140 120
Guarantees
The guarantee is a standby letter of credit supporting external bank funding of the jointly controlled entity Fertimas S.A. Funding was previously
provided by the respective joint venture partners. See Note 5.
PGG Wrightson Loyalty Reward Programme
PGG Wrightson operates the Max Rewards loyalty programme. A provision is retained for the expected level of points redemption. A contingent
liability of $0.10 million represents the balance of unexpired points that do not form part of the provision (30 June 2017: $0.14 million, 31
December 2016: $0.12 million). Losses are not expected to arise from this contingent liability.
Holidays Act 2003 entitlements
The Group has commenced a review of payroll payments made to determine the correctness of calculations in accordance with the Holidays Act
2003. As work on this review has not been completed to a level to reliably estimate the amount of the liability, no provision has been recognised
in respect of this review as at 31 December 2017.
12 RELATED PARTIES
Parent and ultimate controlling party
The immediate parent of the Group is Agria (Singapore) Pte Limited and the ultimate controlling party of the Group is Agria Corporation.
Transactions with key management personnel
UNAUDITED AUDITED UNAUDITED
DEC 2017 JUN 2017 DEC 2016
$000 $000 $000
Key management personnel compensation comprised:
Short-term employee benefits
5,018 7,924 3,622
Post
-employment benefits
95 121 64
Termination benefits – – –
5,113 8,045 3,686

26 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 27
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017
13 EVENTS SUBSEQUENT TO END OF INTERIM PERIOD
Dividend
On 26 February 2018 the Directors of PGG Wrightson Limited resolved to pay an interim dividend of 1.75 cents per share on 5 April 2018 to
shareholders on the Company’s share register as at 5.00pm on 16 March 2018. This dividend will be fully imputed.
14 REPORTING ENTITY
PGG Wrightson Limited (the “Company”) is a company domiciled in New Zealand, registered under the Companies Act 1993 and listed on the New
Zealand Stock Exchange. The Company is an FMC Entity in terms of the Financial Markets Conduct Act 2013.
The interim financial statements of PGG Wrightson Limited for the six months ended 31 December 2017 comprise the Company and its
subsidiaries (together referred to as the “Group”) and the Group’s interest in associates and jointly controlled entities. Financial statements have
been prepared in accordance with the requirements of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013.
The Group is primarily involved in the provision of goods and services within the agricultural sector.
15 BASIS OF PREPARATION
Statement of Compliance
The interim financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”). They
comply with the New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”) and other applicable Financial Reporting
Standards as applicable for profit oriented entities, and in particular NZ IAS 34. The interim financial statements comply with International Financial
Reporting Standards as issued by the International Accounting Standards Board, as applicable for profit oriented entities.
The interim financial statements do not include all of the information required for full annual financial statements. The same accounting policies
and methods of computation are followed in the interim financial statements as applied in the Group’s latest annual audited financial statements.
Certain comparative amounts have been reclassified to conform with the current period’s presentation.
Standards and Interpretations That Have Been Issued or Amended But Are Not Yet Effective
A number of new standards and interpretations are not yet effective for the period ended 31 December 2017 and have not been applied in
preparing these interim financial statements. The impact of these new standards and interpretations to the Group is as follows:
–

IFRS 9 (2014) Financial I
nstruments has been issued. The final component of IFRS 9 (2014) introduces a new expected credit loss model for
calculating impairment. IFRS 9 (2014) is effective for annual periods beginning on or after 1 January 2018. The Group does not plan to adopt
IFRS 9 (2014) early. Initial review has determined that this new standard will not have a significant financial impact on the Group’s financial
statements.
–
IFRS 15 Re
venue from Contracts with Customers has been issued. This standard introduced a new revenue recognition model for contracts
with customers. The standard is effective for annual periods beginning on or after 1 January 2018. Initial review has determined that this new
standard will not have a significant financial impact on the Group’s financial statements.
–

IFRS 16 Leases has been issued
. This standard eliminates the classification of leases as either operating leases or finance leases. The standard
uses a single lessee model which requires a lessee to recognise on the Statement of Financial Position assets and liabilities for all leases with
a term of more than 12 months. The standard is effective for annual periods beginning on or after 1 January 2019. The Group does not plan
to adopt IFRS 16 early. Initial review has determined that this new standard will likely have a significant financial impact on both the balance
sheet and profit and loss given the extent of operating leases the Group is exposed to.
–
A variety of minor improvements to standards have been made in order to clarify various treatments of specific transactions. These are not
expected to have an impact on the Group’s financial results.
These statements were approved by the Board of Directors on 26 February 2018.

28 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 29
ADDITIONAL FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2017
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLATION AND OTHER REVALUATION HEDGING DEFINED BENEFIT FAIR VALUE RETAINED NON–CONTROLLING TOTAL
CAPITAL RESERVE RESERVES RESERVE RESERVE PLAN RESERVE RESERVE EARNINGS INTEREST EQUITY
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 July 2016 606,324 (8,749) 23,443 556 1,468 (17,170) 2,412 (336,028) 2,043 274,299
Total comprehensive income for the period
Profit or loss
– – – – – – – 14,988 (9) 14,979
Other comprehensive income
Foreign currency translation differences – 960 – – – – – – (18) 942
Eff
ective portion of changes in fair value of equity instruments, net of tax – – – – – – 504 – – 504
Effective portion of changes in fair value of cash flow hedges, net of tax – – – – (1,468) – – – – (1,468)
Defined benefit plan actuarial gains and losses, net of tax
– – – – – 1,789 – – – 1,789
Total other compr
ehensive income – 960 – – (1,468) 1,789 504 – (18) 1,767
Total c
omprehensive income for the period

–

960

–

–

(1,468)

1,789

504

14,988

(27)

16,746
Tr
ansactions with shareholders, recorded directly in equity
Contributions by and distributions to shareholders
Investment in minority interest
– – – – – – – – 381 381
Dividends to shar
eholders – – – – – – – (15,252) (289) (15,541)
Total contributions by and distributions to shareholders – – – – – – – (15,252) 92 (15,160)
Transfer to retained earnings

–

–

–

–

–

1,807

–

(1,807)

–

–
Balance a
t 31 December 2016 606,324 (7,789) 23,443 556 – (13,574) 2,916 (338,099) 2,108 275,885
Balance at 1 January 2017
606,324 (7,789) 23,443 556 – (13,574) 2,916 (338,099) 2,108 275,885
Total c
omprehensive income for the period
Profit or loss
– – – – – – – 30,619 713 31,332
Other c
omprehensive income
Foreign currency translation differences
– (2,492) – – – – – – – (2,492)
Eff
ective portion of changes in fair value of equity instruments, net of tax


– – – – – – (264) – – (264)
Eff
ective portion of changes in fair value of cash flow hedges, net of tax


–

–

–

–

–

–

–

–

–

–
Defined benefit plan ac
tuarial gains and losses, net of tax – – – – – (1,057) – – – (1,057)
Total other comprehensive income
– (2,492) – – – (1,057) (264) – – (3,813)
Total c
omprehensive income for the period
– (2,492) – – – (1,057) (264) 30,619 713 27,519
Tr
ansactions with shareholders, recorded directly in equity
Contributions by and distributions to shareholders
Dividends to shareholders
– – – – – – – (13,336) (357) (13,693)
Total c
ontributions by and distributions to shareholders – – – – – – – (13,336) (357) (13,693)
Transfer to retained earnings

–

–

–

–

–

544

(5,239)

4,695

–
Balance a
t 30 June 2017 606,324 (10,281) 23,443 556 – (14,087) (2,587) (316,121) 2,464 289,711

30 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 31
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CHANGES IN EQUITY (CONTINUED)
For the six months ended 31 December 2017
ADDITIONAL FINANCIAL DISCLOSURES
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLA
TION
AND O
THER
REV
ALUATION
HEDGING DEFINED BENEFIT FAIR
VALUE
RET
AINED
NON–CONTR
OLLING
TO
TAL
CAPITAL RESERVE RESERVES RESERVE RESERVE PLAN RESERVE RESERVE EARNINGS INTEREST EQUITY
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 July 2017 606,324 (10,281) 23,443 556 – (14,087) (2,587) (316,121) 2,464 289,711
Total comprehensive income for the period
Profit or loss – – – – – – – 14,488 152 14,640
Other c
omprehensive income
Foreign currency translation differences – 3,888 – – – – – – (3) 3,885
Eff
ective portion of changes in fair value of equity instruments, net of tax – – – – – – – – – –
Defined benefit plan actuarial gains and losses, net of tax
– – – – – 1,442 – – – 1,442
Total other compr
ehensive income – 3,888 – – – 1,442 – – (3) 5,327
Total c
omprehensive income for the period
– 3,888 – – – 1,442 – 14,488 149 19,967
Tr
ansactions with shareholders, recorded directly in equity


Con
tributions by and distributions to shareholders


In
vestment in minority interest
– – – – – – – – – –
Dividends to shar
eholders – – – – – – – (15,234) (310) (15,544)
Total contributions by and distributions to shareholders


– – – – – – – (15,234) (310) (15,544)
Transf
er to retained earnings
– – – – – 2,606 – (2,606) – –
Balance a
t 31 December 2017
606,324 (6,393) 23,443 556 – (10,039) (2,587) (319,473) 2,303 294,134

Managing your shareholding online:
To change your address, update your payment
instructions and to view your investment portfolio,
including transactions, please visit:
www.investorcentre.com/nz
General enquiries can be directed to:
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Takapuna, Auckland 0622
8
enquiry@computershare.co.nz
* Private Bag 92119, Auckland 1142,
New Zealand
Telephone +64 9 488 8777
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Please assist our registrar by quoting your CSN
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32 | PGG WRIGHTSON LIMITED
PGG WRIGHTSON LIMITED
CORPORATE DIRECTORY
Board of Directors
for the six months ended
31 December 2017
Guanglin (Alan) Lai
Chairman
Trevor Burt
Deputy Chairman
Bruce Irvine
John Nichol
Lim Siang (Ronald) Seah
Joo Hai Lee
(appointed 31 October 2017)
John Fulton is an Alternate Director
for Joo Hai Lee
Kean Seng U
Wah Kwong (WK) Tsang
(retired 16 October 2017)
Executive Team
for the six months ended
31 December 2017
Ian Glasson
Chief Executive Officer
(appointed 1 November 2017*)
Julian Daly
General Manager Strategy and
Corporate Affairs / Company Secretary
Grant Edwards
General Manager Wool
(appointed 1 November 2017, previously
General Manager Insurance and Financial
Services**)
David Green
General Manager New Zealand Seeds
Stephen Guerin
Group General Manager Retail and Water
John McKenzie
Group General Manager Seed and Grain
Peter Moore
General Manager Livestock
Peter Newbold
General Manager Real Estate
Peter Scott
Chief Financial Officer
Rachel Shearer
General Manager Human Resources
Brent Sycamore
General Manager Grain
* Mark Dewdney
Chief Executive Officer
(resigned 31 October 2017)
** Cedric Bayly
General Manager Wool
(retired 31 October 2017)
Registered Office
PGG Wrightson Limited
57 Waterloo Road
Hornby
Christchurch 8042
PO Box 292
Christchurch 8140
Telephone:
0800 10 22 76 (NZ only)
+64 3 372 0800 (International)
Email: enquiries@pggwrightson.co.nz
Auditors
KPMG
62 Worcester Boulevard
PO Box 1739
Christchurch 8140
Telephone +64 3 363 560
Company number 142962
NZBN 9429040323497

“This is a very pleasing
result for the first
half. We have a highly
engaged team who
continue to deliver
good results through
the market cycles and
weather variability that
impact the agri-sector.“
Ian Glasson
Chief Executive Officer
PGW Chief Executive Ian Glasson on farm with Paul Wright
near Sheffield in Canterbury in November 2017.

HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2017 | 5
Helping grow the country